NORTHEASTERN UNIVERSITY
University College,
Boston
Winter,1994 Key
#73148 Keshab R.
Bhattarai,
IECN 4330 Economic Growth and Development Phone:- (617)373-5596
Class Hours:
Mon.8.10-10.30 PM and
Replacement Class on
Friday March 10 at the same time.
Prerequisite: None, but
knowledge of economic principles and any spreadsheet
package is helpful.
TEXTBOOKS:
Gillis, Perkins, Roemer
and Snodgrass, Economics of
Development, 3rd edition, New York, Norton 1992. (Required).
and
Bolnick and Haughton, Study Guide and Workbook for Economics
of Development, New York, Norton, 1992.(Required).
World Bank, World Development Report, 1994,
(Recommended).
Book on reserve in the
Snell Library
Michael P. Todaro, Economic
Development, 1994, Fifth Edtition, Longman.
I. Brief Description of the Course
Objectives
More than eighty four percent of world's
population live in developing countries. The World Bank (1990) estimates that
there are 1.1 billion individuals living below the poverty line (with the per
capita income less than or equal to $370/year). Over the last two decades some
countries in the East Asia and the Latin America have emerged as newly
industrialized countries (NIC) while many other economies, particularly the
economies of Sub-Saharan Africa remain stagnated. The forty seven economies of
Subsaharan Afric with more than 553 million people have a total GDP less than
that of the Netherland's 15.2 million people (WDR, 1994, Table 1, p.163).
Why do some countries prosper but others lag behind? What are
the instruments and what are the obstacles for development? Who gains and who
looses in the process of economic development? What kind of policies are
helpful to break the interlocking vicious circle of poverty (See fig. 1) in
order to transform an agrarian economy toward industrialization? Will income
converge over periods or will the gap widen between rich and poor countries? We
will look these issues from the theoretical, analytical and policy
perspectives.
In this course you will
learn about (a) the history, trends and structural changes characterizing
economic development; (b) sources of economic data on developing economies (c)
Some of the key economic policy issues facing contemporary developing
countries.
II. Course
Requirements
Four Assignments from
Study Guide and Workbook 24%
Analysis of Development
Issues -- 26%
(a.data analysis 10% b report writing 16% )
Takehome Mid-term - 20%
Final exam (in
class)------------------------- 30%
III. Policies of the
Course
a) Classes will be run
as lectures with discussions. Questions may be asked at any time.
b)CLASS ATTENDANCE,
PARTICIAPATION AND EFFORT will determine your grade if your average at the end
of the quarter is at the grading "borderline".
c) A grade of
INCOMPLETE will be given only in the case of a confirmed medical excuse for
missing the final exam.
d) If you have any
problem relating to the course, please come in my office hours, or fell free to
call me at my office number 373-5596 or leave a message.
IV Target Class
Schedule and Reading List
First Class (Jan. 9)
1. Introduction (Ch.
1,2)
Characteristics
of development in LDC;
Indicators of Development; Human Development Index;
Second and Third Class (Jan. 23, 30)
2.Fundamentals of
Economic Development
A. Growth and Structural Change (Ch. 3, 11, and pp. 413-419).
B. Role of Markets (Ch. 5)
C. Population and Sustainable Development (Ch. 7, 19)
4th and 5th Class (Feb. 6, 13)
3. The Poorest of the
Poor
A. Income Distribution and Poverty (Ch. 4, 8, pp. 318-327).
B. Basic Human Needs (Ch. 9, 10, 18).
Take Home Mid-Term ( Given in
Feb. 13, due Feb. 27)
6th and 7th Class (Feb. 27 and March6)
4. Financing Economic
Development (Ch. 11,12, 13, 14)
8th and 9th Class (March 10 and 13)
5 Trade Policy for Development (Ch.15, 16, 17)
6 Final Exam (March 20)
V. General Guidelines for paper
Theories to be
discussed in class make it easy to process the vast accumulated information on economic
development developing countries You may choose one of the following issues to
write your paper. It is better to start from conceptual framework given by the
theory and look for information relevant to test the proopositions of such
theory. Finally you should conclude by some statement whether you accept or
reject the theory.
1. Ruran-Urban
Migration; Problems of Urbanization
2. Trade and Growth;
Export as an Engine of Growth
3. Importance of
Macroeconomic Stability on Growth
4. Education, Skill
Formation, Training and Manpower Development
5. Application of
Science and Technology for Economic Development
6. Investment, Capital
Formation,and Development
7. Transition of
Centrally Planned Economies to Market Economies
8. Poverty and
Inequality: Measurement, Comparision and Solutions
9. Health and Nutrition
10.Population and
Development
11. Women and
Development
12. Structural
Adjustment and Development
13. Debt Problem and
its Solution
14. Direct Foreign
Investment
15. Environment and
Development
16. Institutions and
Development
17. An issue of your
own interest (But ask me before you start)
You may need to look at
following publications to do your paper.
A) Professional
Journals (Available at Snell Library, Periodical Section):
1. Journal of Development Economics (Most Difficult)
2. Journal of Development Studies
3. World Development
4. Economic Development and Cultural Change
5. World Bank Research Observer
6. Development Finance
B) Statistical
Information (These are annual series; Available at Reference Section of the
Snell Library):
1 World Bank, World Development Reports. It extensively
reports one special issue each year.
2.World Bank, World Tables
3. IMF, World Outlook, International Financial
Statistics, and Balance
of Payment, Direction of Trade Statistics, Government
Statistics., Development Finance,
4.UNDP, Human Development Report (annual), begining 1990
(check in
oversize section of the library).
5.UNCTAD, Trade Statistics.
6.UN, Statistical Yearbook
7 UN, Yearbook of National Account Statistics
8.UN, Yearbook of Industrial Statistics
9.UN, Demographic Yearbook
10.UN, Yearbook of International Trade Satistics
11.UNESCO, Statistical Yearbook
12 FAO, Monthly Bulletine of Statistics
13.WHO, World Health
Statistics Report
Besides these journal
and international sources, publications of Ministry of Finance and Planning
Agencies in developing countries, Ministries of Overseas Development in
developed countries, if available, are very helpful to analyze the issues of
your interest.Some article in the standard newspapers may provide upto date
information.
Be familiar with the
following and other acronyms for international developmental organization.
GATT: General Agreement
on Tariffs and Trade
FAO: Food And
Agricultural Organization
IBRD: Indternational
Bank for Reconstruction and Developmnet
IMF: International
Monetary Fund
ILO: International
Labor Organization
OECD: Organization of
Economic Cooperation and Development
UNESCO: United Nations
Education, Scientific and Cultural Organization
UNICEF: United Nations
Children's Fund
UNIDO: United Nations
Industrial Development Organization
UNDP: United Nations
Development
UNCTAD: United Nations
Conference on Trade and Development