Advanced Development Economics

18.730 (Winter 2006)

Instructor: Office: Email: John Serieux 512 Fletcher Argue Building serieux@cc.umanitoba.ca Class Time: Location: Office Hours: T/Thu: 11:30 a.m. 12:45. 216 Tier Building Tue/Thu: 4:00 5:00 p.m.

Course Description The purpose of this course is to provide students with the background necessary to function with a significant degree of competence, within the field of development economics. To that end, the course will attempt to cover the major topical areas of the subject to give students the necessary breath of knowledge. Those topical areas where controversies exist or where new research is of particular relevance will be covered in greatest detail. Throughout this course it will be assumed that students have completed micro and macroeconomics courses at an advanced level. As part of the evaluation, students will be required to write a paper (of 5-10 pages) within each of the major thematic areas covered and with particular reference to a particular country or region. The paper will also have to be presented in class. Evaluation Four country or region specific papers and presentations (20% each) Class participation Presentation Dates: October 6;

80% 20%

October 26;

November 28;

December 07

Required (Primary) Texts Cypher, James and James Dietz (2004). The Process of Economic Development, Routledge. Ray, Debraj (1998). Development Economics, Princeton University Press. Secondary Texts: Siggel, Eckhard (2005). Development Economics: A Policy Analysis Approach, Ashgate Publishing. Szirmai, Adam (2005). The Dynamics of Socio-Economic Development: An Introduction, Cambridge University Press.

Topics and Reading

THEME 1: 1.1 DEFINING THE DEVELOPMENT CHALLENGE

Development: an introduction *Ray, Debraj (1998). Development Economics: Chapter 2. *Cypher and Dietz (2004). The Process of Economic Development: Chapter 1 & 2

1.2

The Concept of Development *Lewis, W. Arthur (1955). Is Economic Growth Desirable, Appendix of The Theory of Economic Growth, George Allen & Unwin Ltd. *Sen, Amartya (1988). The Concept of Development, Chapter 1 of Handbook of Development Economic: Volume I, North Holland. *Sen, Amartya (1999). Chapters 1 & 2 of Development as Freedom, New York: Alfred A. Knopf, 1999. UNDP (1990). Human Development Report 1990, Chapter 1, Oxford University Press, 1990.

1.3 1.4

Models of Economic Growth *Ray, Debraj (1998). Development Economics: Chapter 3 & 4 Traditional Models of Economic Development *Cypher and Dietz (2004). The Process of Economic Development: Chapter 5. Gerschenkron, Alexander (1952). Economic Backwardness in Historical Perspective, in Hoselitz, Bert F. (ed.) in: The Progress of Underdeveloped Areas, Chicago: The University of Chicago Press. Hirschman, A. O. (1958). The Strategy of Economic Development (Chapters 3 & 4), New Haven and London: Yale University Press. Nurkse, Ragnar (1964). Problems of Capital Formation in Underdeveloped Countries (Chapter 1), New York: Oxford University Press. Rosenstein-Rodan, P. N. (1961). Notes on the Theory of the Big Push, in H. S. Ellis and H. C. Wallich (eds.), Economic Development for Latin America, New York: St. Martin's Press. W. W. Rostow (1990). The Five Stages-of-Growth A Summary in: The Stages of Economic Growth: A Non-Communist Manifesto (Third Edition), Cambridge: Cambridge University Press.

1.5

Heterodox Theories of Economic Development *Cypher and Dietz (2004). The Process of Economic Development: Chapter 6. Gurley, John and Keith Griffin (1985). Radical Analyses of Imperialism, the Third World and the Transition to Socialism: A Survey Article, Journal of Economic Literature, 23(3): 1089-1143.

1.6

Neoclassical Perspectives on Economic Development *Cypher and Dietz (2004). The Process of Economic Development: Chapter 7. *Meier, Gerald M (2005) Orthodox Reaction, Chapter 6 of Biography of a Subject: An Evolution of Development Economics, Oxford University Press. *Williamson, John (1990). What Washington Means by Policy Reform, in Latin American adjustment: how much has happened? Washington DC: Institute for International Economics, 1990. Lal, Deepak, Policies for Economic Development: Why the Wheel has Come Full Cycle, The South African Journal of Economics, 63(4), December, 1995.

1.7

Modern Theories of Economic Development *Ray, Debraj (1998). Development Economics: Chapter 5. *Hoff, K and J. Stiglitz (2001). Modern Economic theory and Development, in Frontiers of Development Economics: The Future in Perspective, Gerald Meier and Joseph Stiglitz (eds.), New York: Oxford University Press. Kramer, Michael (1993). The ORing Theory of Economic Development, Quarterly Journal of Economics 108(3): 551-575. Murphy, K. et al (1989). Industrialization and the Big Push, Journal of Political Economy 97(5): 1003-1026.

THEME 2: 2.1 2.2

THE HUMAN DEVELOPMENT CHALLENGE

Economic Inequality Ray, Debraj (1998). Development Economics: Chapter 6 and 7. Poverty and Undernutrition Ray, Debraj (1998). Development Economics: Chapter 8. *Sen, Amartya (1999). Chapter 4 of Development as Freedom, New York: Alfred A. Knopf, 1999.

2.3 2.4

Population Growth and Economic Development Ray, Debraj (1998). Development Economics: Chapter 9. Health, Health Care and Development Szirmai, Adam (2005). The Dynamics of Socio-Economic Development: An Introduction, (Chapter 6), Cambridge University Press. Education and Development Szirmai, Adam (2005). The Dynamics of Socio-Economic Development: An Introduction, (Chapter 7), Cambridge University Press.

2.5

THEME 3: 3.1

STRUCTURAL TRANSFORMATION: DOMESTIC ISSUES

Urban Transformation and Migration *Ray, Debraj (1998). Development Economics: Chapter 10. The Urban Informal Sector *Portes & Schauffler (1993). Competing Perspectives on the Latin American Informal Sector, Population and Development Review 19(1). Rural Sector *Ray, Debraj (1998). Development Economics: Chapter 12-14 *Cypher and Dietz (2004). The Process of Economic Development: Chapter 11.

3.2

3.3

3.4.

The Environment and Development *Baker, Susan (2006). The Concept of Sustainable Development, Chapter 2 in: Sustainable Development, Routledge. *Bardhan, Pranab and Christopher Udry (1999). Environment and Development, Chapter 13 of Development Microeconomics, Oxford University Press. Dasgupta, Partha (2003). Population Poverty and the Natural Environment, Chapter 5 of Handbook of Environmental Economics, North-Holland. Barbier, Edward B. (1999). Development, Poverty and Environment, Chapter 50 of Handbook of Environmental and Resource Economics, Edward Elgar. Abler and James Shortle (1999). Agriculture and the Environment Chapter 11 of Handbook of Environmental and Resource Economics, Edward Elgar. Heintz, Roebijn and Sander de Bruyn (1999). The Environmental Kuznets Curve Hypothesis Chapter 46 of Handbook of Environmental and Resource Economics, Edward Elgar.

3.5

Industrialization and Development *Cypher and Dietz (2004). The Process of Economic Development: Chapter 9 & 10.

THEME 4: 4.1

INTERNATIONAL ASPECTS OF DEVELOPMENT

Development Finance *Siggel, Eckhard (2005). Financing Economic Growth from External Sources Chapter 4 of Development Economics: A Policy Analysis Approach, Ashgate Publishing. *Cypher and Dietz (2004). The Process of Economic Development: Chapter 14.

4.2

Structural Adjustment and the International Financial Institutions (IFIs) *Siggel, Eckhard (2005). Stabilization, Structural Adjustment and the Role of the IMF Chapter 8 of Development Economics: A Policy Analysis Approach, Ashgate Publishing. *Cypher and Dietz (2004). The Process of Economic Development: Chapter 17.