ECONOMICS 280  Development Economics

Fall 2002 - MW 3-5pm
Instructor: Jim Casey
Contact Info: Rm. 205B, Ext. 8102, Email: Caseyj
Office Hours: wtwth 10-11:30, and by appointment
Prerequisite: Economics 101, 102


Contents
(1) General Overview
(2) Readings
(3) Requirements
(4) Course Outline


(1) General Overview:

This class serves as an introduction to the study of Development Economics.  The course will be divided into four sections.  The first section provides an overview of Development Economics.  What is development economics?  What is the difference between "growth" and "development"?  What is the current state of affairs in the world of development?  What does it mean to be poor?

The second part introduces specific theories of growth and development.  This is the "history of thought" section and leads to current ideas related to “endogenous growth,” "unfreedom"  and “ecological economics.”

The third part of the course deals primarily with the factors of production: physical, human and natural capital.  We will spend a significant amount of time discussing the role of human capital and how it is inseparable from discussions of physical and natural capital.

The last part of the course is reserved for “global issues.” What is the role of the IMF and World Bank?  How does "free-trade" affect development?  Why are there protests in Seattle, Genoa, and Washington D.C.?



(2) Readings:

(1) (H&R) Hess, Peter and Clark Ross.  1997.  Economic Development: Theories, Evidence, and Policies.  The Dryden Press.

(2) Sen, Amartya.  1999.  Development as Freedom.  Random House.

(3) (HDR) Human Development Report  http://www.undp.org/annualreports

(4) (R) Reserve Readings (Located outside my office.  May be borrowed for 2 hours - to read or make copies)

(5) Additional Reading Resources
 Earth Summit 2002
http://www.csmonitor.com/
http://www.stanford.edu/~promer/nontech.htm
http://www.stern.nyu.edu/globalmacro/
http://www.oxy.edu/~gsecondi/dev.html
http://ase.tufts.edu/gdae/
http://www.worldbank.org/poverty/library/index.htm
http://www.journals.uchicago.edu/EDCC/home.html
http://ideas.uqam.ca/ideas/data/JEL/O41.html
http://www.econ.nyu.edu/user/debraj/
http://pieria.acs.southwestern.edu/econ/growth/sld001.htm
http://www.elsevier.nl/homepage/sae/econbase/devec/menu.sht
http://www.worldbank.org/research/growth/pdfiles/1807.pdf
http://www.fgn.unisg.ch/eumacro/IntrTutor/SGE04.html



(3) Requirements:

The first thing you will need to do is pick a developing country of your choice.  You may have a specific region of interest or some place you have visited and this may lead you to choose your country.  By the end of the semester you will become a "development expert" in reference to your country.

30% of your grade will be based on a midterm exam.
30% of your grade will be based on a final exam.
15% of your grade will be based on 3 writing assignments.

15% of your grade will be class participation.  Notice this does not say class attendance.  You will be required to engage actively in the discussions in this class.  Do  NOT assume that everyone gets an A for class participation or that class participation can “only improve your grade” for it will be possible to receive an F in class participation.

10% of your grade will be the cumulative result of four problem sets.

Hold on, we're not quite finished yet.  The last component of this course is a Service learning component.
Each student will be required to volunteer 10 hours of service and keep a journal of this experience.  You should write in your journal after each volunteer experience.  Please note the date and the amount of time you volunteered.  Your entry should reflect on your experience.  How did it feel?  What did you think about?  How does this experience influence how you think about underdevelopment and poverty?

This assignment is important, because the only way to truly understand poverty or underdevelopment is to be poor.  I do not expect anyone to take an oath of poverty to complete this course. However, I do believe there is something to be learned from working with poor people.  This service learning experience is aimed at enriching your understanding of underdevelopment and hopefully to attain a higher level of compassion when thinking about economic policy and poverty.   To begin this part of the course each student must meet with Eric Owsley (Coordinator of Volunteer Work for the Shepard Poverty Program) during the first week of the term.  Eric is open to being contacted by phone email or just stop by Parmly 218 when you have a chance.  This experience will not be graded.  However, failure to complete this component of the course will result in automatic failure.
 
 
PAPERS                                            Due Date 
(1) Background*                                  Sept. 25
(2) Theoretical model*                       Oct. 23
(3) Policy*                                             Nov. 20

*must use 12 pt. Ariel font, double spaced, and 4 page limit

homework                                   Due Date
Chs. 1 (2,3), 3 (1,3)                         Sept. 30
Handout                                         Oct. 14
Chs. 7 (1ac), 9 (1abc)                     Nov. 4
Chs. 10 (1ab,4ab), 13 (5,8)            Dec. 2
Your journal is due December 4, no exceptions. Midterm October 9, Final exam week



(4) Course Outline

Week        Topics & Required Reading

1             What is Development Economics?;  H&R 1, 2, "The Fall and Rise of Development Economics" - Krugman (R)
                    "Markets, Market Failures and Development" - Stiglitz (R).

2            Theories of Development: Harrod-Domar, Solow, Rostow, & Lewis; H&R 3, 4,

               5 myths of 3rd world development

3            Endogenous Growth;  Journal of Economic Perspectives, Winter 1994 (R),

                http://www.worldbank.org/research/growth/

4            Ecological Economics;  H&R 5, 6, "What Natural Capital is and does" - Prugh (R), "Introduction to  Ecological        Economics" - Costanza et al.  (R)

5            Unfreedom;  Sen, Amartya.  1999.  Development as  Freedom. Random House.,

6           Population, Human Capital;  H&R 7,  8, "Investing in People" - Schultz (R)

7          Human Capital (con’t), Labor Markets;  H&R  9, "Are Educated Workers Really More
                Productive?" - Jones (R),         Education in Mexico

8        Physical Capital;  H&R 10,13 MicroCredit

9         Agriculture;  H&R 11, "Models of Agricultural Development" - Ruttan (R), "Agricultural Development:
                Transforming Human Capital, Technology, and Institutions" - Bonnen (R)

10        The Environment;  H&R 12, "People and Ecosystems: The Fraying Web of Life" (R)

11       Trade;  H&R 14, "The effects of openness trade orientation, and human capital on total
                factor productivity" - Miller et al. (R)

12        International Finance;  H&R 15, 16,19



Links:

 

povertypapers.htm

 

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