COVENTRY BUSINESS SCHOOL

320ECN

Development Economics

Module Guide: 2016

1. Module Introduction

This module aims to provide students with an introduction to the main

economic concepts and principles used in understanding economic problems
and policy issues facing developing countries. The module also provides
students with an understanding and evaluation of the comparative
development experience and performance of major regions of the developing
world and an assessment of the differential impact of development strategies.

2. Module Tutors & Contact Details

Name Anne Callan (WM215)

Telephone number 024 77 657691
E-mail Aa3720@coventry.ac.uk
 3. Teaching Plan

Wk Lectures Seminars
1 Introduction to the Module
L1 Meaning of Development Development Challenges
L2 Diverging Performance
2 Meaning of development and
historical experience
Divergence and Convergence
2 L3 Early Models of Development
L4 The Lewis Model
3 Lewis Model
Coursework discussion

3 L5 Mobilisation of Domestic Resources

L6 Planning for Development
4 Micro-Credit
4 L7 Foreign Direct Investment 1
L8 Foreign Direct Investment 2
5 Foreign Direct Investment
5 L9 Trade
L10 Trade
6 Trade and Development
6 L11 International Assistance (Aid)
L12 International Assistance (Aid)
7 International Assistance (Aid)
7 L13 Agriculture 1
L14 Agriculture 2
8 Agriculture
8 L15 Development Strategies 1 (ISI)
L16 Development Strategies 2 (EOI)
9 Development Strategies
9 L17 Poverty
L18 Poverty
ASSIGNMENT DUE 5th DEC
10 Poverty
10 L19 Country Case Studies
11 Review of Module Revision Guide and Past Exam
Questions
 4. Intended Module Learning Outcomes

The intended learning outcomes are that, on completion of this module, students
should be able to:
1. Appraise and evaluate a variety of economic concepts, techniques and
literature of relevance to understanding developing economies.
2. Identify, apply and evaluate indictors for assessing comparative performance
of countries including differentiation and evaluation of explanations for the
unequal improvements in quality of life across different third world regions.
3. Comment critically on strengths and weaknesses of different development
strategies available to developing countries.
4. Compare and contrast a variety of economic perspectives with regard to
major development issues facing a developing economy.

5. Assessment

Assessment is as follows: 25% Coursework and 75% Examination.

Pass requirements: Coursework mark must be at least 35% and Examination mark
must be at least 35% and the Module Mark must be at least 40%.

6. Coursework Details and Deadlines

Students are required to select ONE of the following assignment questions:

1 Critically evaluate the evidence for a developing country of your choice with
respect to each of the three Globalisation trends: convergence, divergence and
interdependence.

2 Critically evaluate the impact of the Green Revolution on two contrasting poorer
countries. Use empirical evidence from the last decade.

Maximum word length: 1,750 words (plus references and appendices).

There will be a penalty of a deduction of 10% of the mark (after internal moderation)
for work exceeding the word limit by 10% or more.
The word limit includes quotations, but excludes the bibliography.

How to submit your assessment

The assessment must be submitted by 23.55:00 on 05/12/16. No paper copies are

required. You can access the submission link through the module web.
 Your coursework will be given a zero mark if you do not submit a copy through
Turnitin. Please take care to ensure that you have fully submitted your work.
All work submitted after the submission deadline without a valid and approved
reason (see below) will be given a mark of zero.
Students MUST keep a copy and/or an electronic file of their assignment.

Extension and Deferral process

The University wants you to do your best. However we know that sometimes
events happen which mean that you cant submit your coursework by the
deadline these events should be beyond your control and not easy to predict.
If this happens, you can apply for an extension to your deadline for up to two
weeks, or if you need longer, you can apply for a deferral, which takes you to the
next assessment period (for example, to the resit period following the main
Assessment Boards). You must apply before the deadline.
You will find information about the process and what is or is not considered to be
an event beyond your control at
https://share.coventry.ac.uk/students/Registry/Pages/Deferrals-and-
Extension.aspx

GUIDELINES AND BACKGROUND TO THIS ASSIGNMENT

Plagiarism

Checks will be made on your work using anti-plagiarism software and approved
plagiarism checking websites.
As part of your study you will be involved in carrying out research and using this when
writing up your coursework. It is important that you correctly acknowledge someone
elses writing, thoughts or ideas and that you do not attempt to pass this off as your
own work. Doing so is known as plagiarism. It is not acceptable to copy from another
source without acknowledging that it is someone elses writing or thinking. This
includes using paraphrasing as well as direct quotations. You are expected to correctly
cite and reference the works of others. The Centre for Academic Writing provides
documents to help you get this right. If you are unsure, please
visit www.coventry.ac.uk/caw. You can also check your understanding of academic
conduct by completing the Good Academic Practice quiz available on Moodle.

Moodle includes a plagiarism detection system and assessors are experienced enough
to recognise plagiarism when it occurs. Copying another students work, using
previous work of your own or copying large sections from a book or the internet are
examples of plagiarism and carry serious consequences. Please familiarise yourself
with the CU Harvard Reference Style (on Moodle) and use it correctly to avoid a case
of plagiarism or cheating being brought. Again, if you are unsure, please contact the
Centre for Academic Writing, your Academic Personal Tutor or a member of the
course team.
Return of Marked Work

You can expect to have marked work returned to you within 10 working days for level
3. If for any reason there is a delay you will be kept informed. Marks and feedback
will be provided online/in class/face to face. Marks will have been internally
moderated only, and will therefore be provisional; your mark will be formally agreed
later in the year once the external examiner has completed his / her review.

1. Module Resources

Essential Reading

1. Todaro, M.P. and Smith, Stephen, (2011 or 2014), Economic Development,

Longman, 11th or 12th Edition, 330.91724 TOD.

Recommended Reading

2. Cypher, James, M. and Dietz, James, L. (2009), The Process of Economic

Development, 3rd edition, Routledge, 330.91724 CYP.
3. Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009) Development
Economics, McGraw-Hill. Meier, G.M. and Rauch, James, E. (2005), Leading
Issues in Economic Development, 8th Edition, OUP, 330.91724 MEI.
4. Secondi Giorgio (2008), The Development Economics Reader, Routledge.
5. World Bank (Various years) World Development Reports
6. UNDP (Various years) Human Development Reports
7. An annually updated full reading list and list of other resources to support this
module can be found by enrolled students via the module web.
 COVENTRY UNIVERSITY
DEPARTMENT OF ECONOMICS, FINANCE AND ACCOUNTING

Development Economics
(320ECN)
Aims

The main objectives of this module are to critically illustrate and evaluate the application of
economic analysis to the problems associated with economic development in third world
countries. The module emphasises the contribution of different economic perspectives and
paradigms in understanding and assessing development strategies and policy issues in a rapidly
globalizing world.

Having completed the module the student is expected to have developed and enhanced the
following "skills": problem solving, group work, data search and retrieval, written and oral
communication, greater awareness of global developmental and environmental issues.

Teaching and Learning

This module is taught through a structured programme of lectures and seminars. To successfully
complete the course attendance is required at both lectures and seminars. Seminars are an
essential means of re-enforcing and extending the material presented in the lectures. Seminars
consist of a programme of working through discussion questions/worked examples and there
will also be opportunities for student lead presentations on selected contemporary issues.
Course Outline and Reading List

(1) Scope of Development Economics: Development and Globalisation; measuring

development and changing meaning of development - major approaches. Shifts in
development thinking and development lessons; globalisation, divergence and
convergence and development experiences.

(2) Alternative Paradigms and Early Theories of Growth and Development: Evolution of
early development theory and policy. Validity of historical experiences.

(3) Dual Economy Models of Growth and Development: Nature of Dualism. Lewis and Fei-
Ranis Models of structural change and their policy implications for contemporary
developing economies

(4) Domestic Resource Mobilisation: Financial Sector dualism and role of financial sector in
developing countries. Strategies and policies for domestic resource mobilisation. Role of
Microfinance.

(5) Development Planning Plan versus the Market. Politics and Planning. Evaluation of
Development Planning experience and Economic Reforms: Case study of India

(6) Foreign Resources for Development: Role and significance of foreign resource flows
role of foreign direct investment (FDI), Overseas Development Assistance (Aid) and
technology - in less developed countries and their impacts on the development process.
Polices to promote FDI. Chinese FDI experiences.

(7) Development Strategies (1) Agrarian Structure, Reform and Strategy. Policies for Rural
Development and Green Revolution; South Asian and Sub-Saharan experiences with
food security; environmental impacts of green revolution strategies

(8) Development Strategies (2) Industrialisation strategies of import substitution and

export promotion. Latin American and East Asian experiences in a changing global
environment

(9) Trade and Economic Development: Historical role of trade in economic development,
limits and problems of trade in primary products; success of Asian Tiger economies in
exports of manufactured goods; FDI, export growth and economic growth nexus;
progress on global trade talks

(10) Poverty and Human Development - measuring human development; Poverty: causes
and consequences; hunger and famines; economic and environmental consequences of
rapid demographic change. Prospects and progress on achieving Millennium
Development Goals and the movement towards the Sustainable Development Goals
 320ECN DEVELOPMENT ECONOMICS

Recommended Reading
(Strongly recommended books/articles are marked by an asterisk)

1. ** Todaro, Michael P and Smith, Stephen C. (2011 or 2012)

Economic Development (11th Edition), Addison Wesley
(Pearson)
2.** Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009 or 2011)
Development Economics, McGraw-Hill.
3. Meier, G.M.and Rauch, J.E.(2005)
Leading Issues in Economic Development, 8th ed. OUP
4.* Ghatak S.(2003) An Introduction to Development Economics, 4th ed. Routledge
Press
5. Ray, Debraj (1998) Development Economics, Princeton University Press

6. A. P. Thirlwall (2011) Economics of Development: Theory and Evidence, 11th

Edition,
Palgrave Macmillan
7.* Secondi, Giorgio (ed) (2008)
The Development Economics Reader, Routledge
8. Kingsbury, D., Remenyi, J.,Mckay, J., Hunt, J. (2004)
Key Issues in Development, Palgrave

9.* Cypher, James M. and Dietz, James L. (2009)

The Process of Economic Development, 3rd Edition, Routledge
10.* Ingham, Barbara(1995)
Economics and Development, McGraw Hill

11.* World Development Reports (Various)

2006 Report Equity and Development
2007 Report Development and the Next Generation
2008 Report - Agriculture for Development
2009 Report Reshaping Economic Geography
2010 Report Development and Climate Change
2011 Report Conflict Security and Development
2012 Report Gender Equality and Development
Previous reports on library shelves and recent ones available
online at www.worldbank.org

12.* UNDP (Various) HDR 2011, Sustainability and Equity: A Better

Future for All
HDR 2010, The Real Wealth of
nations, Pathways to Human Development
Human Development report 2009
Overcoming Barriers: Human Mobility and development
Human Development Report 2007/08
Fighting Climate Change: Human Solidarity in a Divided
World
 HDR 2006 Beyond Scarcity: Power,
Poverty and the Global Water Crisis

Previous Reports in Library but recent

ones available online at www.undp.org
.
13. R. Pomfret(1992) Diverse Paths of Economic Development,
Harvester/Wheatsheaf

14. Hettne, Bjorn(1995) Development Theory and the Three Worlds, 2nd Edition,
Longman Development Studies
15. Ayres, Ron (ed.) (1995)
Development Studies: An Introduction through Selected
Readings, Greenwich University Press
16. Allen, Tim and Thomas, Alan (2000)
Poverty and Development: into the 21st century, OUP and
Open University
17. Greig, Alistair, Hulme, David and Turner, Mark (2006)
Challenging Global Inequality: Development Theory and
Practice in the 21st Century, Palgrave

General Supplementary Textbooks (Older classics but need to be used selectively)

1. Crow, B. Thorpe, M(1988) Survival and Change in the Third World, Polity Press.

2. Livingstone, I(ed)(1981) Development Economics and Policy-Readings. George

Allen & Unwin.

3. J. Robinson(1978) Aspects of Development and Underdevelopment,

Tavistock.

4. Colman D.& Nixon F(1994) Economics of Change in Less Developed Countries (3rd
ed) Philip Allan.

5. Kiely Ray (1999) Industrialisation and Development: a comparative

analysis, UCL Press
6. Gillis M, Perkins D, Roemer M and Snodgrass D. (1996)
Economics of Development, Norton, 4th edn.
7. D. Hunt(1989) Economic Theories of Development, Harvester
Wheatsheaf

Balasubrmanian V.N. and Lall S.(1991)

Current Issues in Development Economics, Macmillan
9. Ekins P & Max-Neef M(1992)
Real Life Economics: Understanding Wealth Creation,
Routledge
10. N. Stern(1989) The Economics of Development, The Economic
Journal, September

11. G. Kitching(1982) Development and Underdevelopment in Historical

Perspective, Methuen.
12. Wilber, C. and Jameson(ed.)(1992)
The Political Economy of Development and
Underdevelopment, 5th edition, Random House
 MAJOR RESEARCH MATERIALS IN DEVELOPMENT ECONOMICS

1. International Data Sources and Reports

World Development Report - this is the single most useful source material. Each year's
edition provides:
-Numerous Tables of Data on Socio-Economic Indicators for well over 100
countries. [World Bank data and also some major Reports are available
on-line from the World Bank website]
Human Development Reports (available as global report, regional reports and country
reports)
UNCTAD World Investment Reports
UNCTAD Trade and Development Reports
See also other Publications of: IMF, UNESCO, UNCTAD, UNIDO, WORLD BANK, EU, and
OECD

2. Major Economic Development Journals

Economic Development and Cultural Change

Journal of Development Studies
Journal of Development Economics
World Development
Journal of Asian Studies
Journal of Developing Economies
Journal of Developing Areas
Development and Change
Third World Quarterly
Journal of Modern African Studies
Journal of Modern Asian Studies
Far Eastern Economic Review
Population and Development
World Economy
The World Bank Economic Review
Asia Pacific Development Journal
Asian Survey
Finance and Development (available online)

3. The Internet
The Internet is fast becoming a major source of information and reference material.
There are now a large number of websites devoted to the area of development studies.
All the major international organisations also have their own websites. Here are two
major sites that you may wish to explore to start you off:
http://www.worldbank.org/
http://www.undp.org/
Both of these addresses have links to other related websites. The section below gives a
more comprehensive list of development-oriented websites although not all may have
upto date URLs. If you do come across some other interesting sites please let me know.
 Major Web Sites on Development
BANKING AND FINANCIAL NGOs - INTERNATIONAL
INSTITUTIONS
Amnesty International
African Development Bank Http://www/amnesty.org/index.html
http://mbendi.co/za/orafdb/htm
War Child
Asian Development Bank Http://www.warchild.org
http://www.asiandevbank.org/
NGOs - UNITED KINGDOM
Carribean Development Bank
http://www.cdbank.org/ British Council
Http://www.britcoun.org/
European bank for Reconstruction and
Development Charities Aid Foundation
http://www.dfatimaeci.gc.ca/ Http://www.dircon.co.uk/

International Monetary Fund Charity Net Site

http://www.imf.org/ Http://www/charitynet.org/

The World Bank Group Development NGO Links

http://www.worldbank.org/ Http://wwwgn.apc.org/gn/

DEVELOPMENT NETWORKS Friends of the Earth

Http://www.foe.org/
Eldis
http://www.ids.ac.uk/eldis/eldis.html NGO Sites
Http://www.interaction.org/
EuForic - Europes Forum on International
Cooperation One World
http://www.oneworld.org Http://www.oneworld.org/

Southbound Third world Oxfam

Network Http://www.ecdpm.org/
http://www.southside.org.sg/cgi-bin/sop/frontpage.p
VSO
Third World Network (TWN) Http:/www.oneworld.org/vso
http://www.twnside.org.sg/

GOVERNMENT UK MULTILATERAL
ORGANISATIONS
DFID Home Page
http://www.dfid/gov.uk AlertNet
Http://www.alertnet.org
Foreign & Commonwealth Office
http://www.fco.gov.uk/no-table.html Development Association Committee
Http://www.oecd.org/dac/index
ENVIRONMENT
The Directorates - General and Services
GreenNet - Networking for the Envrionment, Peace Http://europa-eu.int/en/comm/
and Human Rights
http://www.gn/apc.org/ International Labour Organisation
Http://www.ilo.org/public/english/index.htm
Rainforest Action Network
http://www.ran.org/ OECD
Http://www.oecd.org/
Two Way Track:Biodiversity Conservation and
Ecotourism World Food and Agricultural Orgainsation
http://biodvser_5/twoexe.html http:/www.fao.org/

HUMAN RIGHTS World Food Programme

 Http://www.wfp.org/
Human Rights Internet
http://www.hir.ca/ World Health Orgnisation
Http://www.who.ch/
Human Rights Web
http://www.hrweb.org UN Home Page
Http://www.un.org/
Detailed Guide to Lecture Objectives, Discussion Questions and
Readings

(1) Subject Matter and Scope of Development Economics: Characteristics of Less

Developed Countries (LDCS) The meaning of development - major approaches and shifts in
development thinking. Development Lessons of last 60 years

Learning Objectives

be familiar with major characteristics of developing economies;

have an understanding of the distinction between economic growth and economic
development and differences in indicators for measuring them;
have an overview of sixty years of development history and major shifts in thinking
about development issues;
be able to appreciate the main differences in major approaches and paradigms in
understanding of development issues.

References

1.* Todaro, M.P. (2009 or 2011 or 2014) Part 1, Chs. 1-2

2.* Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009), Part 1, chapters 1-3.
3. Ingham, B(1995) Chapters 1 and 2.
4. Secondi, Giorgio (ed) (2008), Part 1
5. Meier G.M. (2005) Section 1: Introduction and Section 11.
6. Lal D. (1982) The Poverty of Development Economics, I.E.A.
7. Ghatak (2003) Introduction
8. Hettne(1995) Introduction
9. Cypher and Dietz(2009), Chs 1-2.

Issues for Student Reflection

The Meaning of Development

(i) Is the term Third World still a useful concept?

(ii) Distinguish between the concepts of economic growth and economic
development.
(iii) Consider why economic growth is a necessary but not a sufficient condition for
economic development.
(iv) What have been the major shifts in development theory and thinking during
the last 60 years of development experience?
(v) From a Third World perspective, what is wrong with current development
theory?
(vi) What have been the main development lessons of the last 60 years?
(2) Alternative Paradigms and Theories of Growth and Development: Evolution of
development theory and policy. Value and limitations of historical experiences.

Leaning Objectives

be able to appreciate the major contribution of different schools of thought in

understanding development problems;
have an understanding of the key concepts in evolution of development
theory in post-war period;
have a critical appreciation of the contribution and limitations of early
development theory;
have an understanding of the usefulness and limitations of historical experiences in
understanding contemporary problems;
explore the nexus between globalisation and development.

References

1.* Todaro (2009 and 2011 or 2014) Chap. 3-4.

2.* Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009), chapters 4-5
3. Hunt (1989)
4. Secondi, Giorgio (ed) (2008), Part 1 and 2
5. Ingham, B.(1995) Chapters 3 and 4
6. Cypher and Dietz(2009) Chap. 3, 4, 5 and 6.
7. Hayami, Yujiro (2003) From the Washington Consensus to the Post-Washington
Consensus: Retrospect and Prospect, Asian Development Review, vol. 20, no. 2
(available online)
8. C Gore ( 2000) The rise and fall of the Washington Consensus as a Paradigm for
Developing Countries, World Development, Vol 28, No.5., May

Issues for Student Reflection

Alternative Paradigms and Early Growth Theory

(i) Contrast the major features/characteristics of early development theories with that of
modern theories. What accounts for these differences?
(ii) Identify the main policy implications of early development models.
(iii) What lessons can developing countries learn from the historical experiences of
industrialised countries?
(iv) Discuss the view that economic problems facing contemporary developing countries
are so great and diverse that historical experiences are meaningless.
(v) Has globalization increased or decreased global inequalities?
(3) Dual Economy Models of Development: Nature of Dualism. Lewis and Fei-Ranis
Models of structural change and policy implications. Contemporary relevance of models

Learning Objectives

have an understanding of nature of dualism and its different manifestations;

be familiar with the Lewis model and the extended Fei-Ranis model of Structural
Change;
have a critical perspective on usefulness of dual economy models for contemporary
developing economies;
appreciate the policy implications of dual economy models.

References

1.* Todaro (2009 and 2011 or 2014) Chap 3-4

2. Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009), chapters 4-5.
3. Ingham, B.(1995) Chapter 4
4. Meier (2005) Section V1
5 Gilles, Perkins, Roemer, Snodgrass, Chap 3
6. Ghatak (2003) chapters 2 and 3

Issues for Student Reflection

Dual Economy Models

(i) What is dualism? Provide examples to illustrate your answer.

(ii) What are the main factors that create and perpetuate dualism?
(iii) What are the main differences between the Lewis and Fei-Ranis models?
(iv) Identify the main policy implications of dual economy models especially as
they relate to the debate between Balanced versus Unbalanced Growth
Strategies.
(4) Mobilisation of Domestic Resource: Nature of Money and Credit Markets in
developing Countries. Financial sector development. Strategies and policies for domestic
resource mobilisation

Learning Objectives

have an understanding of the workings of the organised and unorganised

money markets in developing countries and the potential for state
intervention;
have understanding of the major characteristics of financial repression and
role of liberalisation of financial markets;
have an appreciation of effectiveness of fiscal policy and different financial
instruments in mobilising savings and tax revenues.

References

1. Todaro (2009 and 2011 or 2014) Chap 15

1. Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009), chapter 19.
3.* Ghatak (2003) Chap 5
4. Secondi, Giorgio (ed) (2008), Part 6
5. J. de Gregorio and P.E. Guidot (1995) Financial Development and Economic Growth,
World Development, Vol. 23, No. 3, March 1995
6. World Development Report (2005) A Better Investment Climate for Everyone: Chapter 6
in Financial markets

Issues for Student Reflection

Domestic Resource Mobilisation

(i) What are main forms of savings in developing countries? What are their main
determinants?
(ii) Outline the main characteristics of money and credit markets in developing countries.
(iii) How will financial liberalisation of financial markets aid mobilisation of savings?
(iv) Why are developing countries over-reliant on indirect forms of taxes for revenue
collection rather than direct taxes? What are the implications of this for governments
and taxpayers?
(v) What is microfinance? What is its significance for development?
(5) Planning for Development Planning versus the Market. Political Economy of
Planning. Evaluation of Development Planning experience with special reference to Indian
Planning

Learning Objectives

have an appreciation of different forms of market failure and rationale for state
intervention;
appreciate the differences in forms of planning, politics of planning and planning
models;
have a critical appreciation of reasons for planning failures, including government
failures;
have a critical understanding of the Indian planning experience and outcome

References

1.* Todaro (2009 and 2011 or 2014) Chap 11.

2. Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009), chapter 20 and 6.
3. Ghatak (2003) Chap 11.
4. Ingham, B.(1995) Chapter 5.
5. Meier (2000) Section IX.
6. Gilles, Perkins, Roemer and Snodgrass Chaps. 5,6
7. Rudolph L. and Rudolph, S.(1987) In Pursuit of Lakshmi: The Political Economy of the
Indian State, University of Chicago Press.
8. Byres, Terence (ed.) (1993) The State and Development Planning in India, OUP.
9. World Development Report 1996: From Plan to Market, OUP
10. World Development Report 1997: The State in a Changing World, OUP.
11. Cypher and Dietz(2009), Chap. 7.

Issues for Student Reflection

Development Planning

(i) What is the rationale for state intervention in developing countries? Give
examples to illustrate your answer.
(ii) Is there such thing as apolitical development planning? Explain your answer.
(iii) Why has development planning failed in most developing countries?
(iv) What is meant by government failure? Provide examples to illustrate your
point.
(v) What do you understand by the term good governance?
(6) Foreign Direct Investment: Role and significance of foreign capital: foreign
direct investment, portfolio investment and technology transfer - in less developed
countries and their impact on the development process.

Learning Objectives

have an understanding of trends, patterns and distribution of financial flows to

developing countries;
appreciate the economic rationale for attracting financial capital;
critically appreciate the significance of, and difficulties associated with operation of
multinationals in developing countries.

References

1.* Todaro (2009 and 2011 or 2014) Chapter 14

2.* Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009), chapter 21, 23.
3. Secondi, Giorgio (ed) (2008), Part 8
4. Ingham, B (1995) Chapter 13
5. Cypher and Dietz(2009), Chaps. 14, and 17.
6. Moran, Theodore, H. (1998) Foreign Direct Investment and Development, IIE,
Washington (332.67391724 MOR)
7. Anne O Kreuger (1998), Whither the World Bank and the IMF, Journal of Economic
Literature, vol.36, no.4, December
8. Loungani, P and Razin A. (2001), How Beneficial is FDI for Developing Countries?
Finance and Development, June p.6-9.

Issues for Student Reflection

Role of Foreign Capital (Multinationals) and International Trade in Development

(i) Argue the case that a multinational acts as a development agent in the Third
World.
(ii) What are the implications for the Third World of the emergence of the `Nike
Economy' ie a global factory and an increased momentum towards
globalisation led by the multinationals?
(iii) What are export processing zones? What do you consider to be their major
weaknesses?
(iv) Would you consider multinational capital to be a progressive or a
retrogressive force in the Third World?
(7) International Development Assistance (Aid): Role and significance of aid in
less developed countries and its impact on the development process.

Learning Objectives

have an understanding of trends, patterns and distribution of financial flows to

developing countries;
appreciate the economic rationale for attracting / giving aid;
have an overview of the debates and controversies over role of aid in development.

References

1.* Todaro (2009 and 2011 or 2014) Chapter 14

2.* Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009), chapter 21, 23.
3.* HDR (2005) Chapter 3 on Aid for the21st century
4. Secondi, Giorgio (ed) (2008), Part 8
5. Cassen, R (1994) Does Aid Work?, 2nd edition, Clarendon Press
6. Ingham, B (1995) Chapter 13
7. Cypher and Dietz(2009), Chaps. 14, and 17.
8. World Bank (1998), Assessing aid: what works, what doesnt and why, World Bank
Policy Research Report (338.91)
9. Anne O Kreuger (1998), Whither the World Bank and the IMF, Journal of Economic
Literature, vol.36, no.4, December

Issues for Student Reflection

The Role and Effectiveness of Foreign Aid

(i) What is the economic rationale for foreign aid? Is it still valid?
(ii) Outline the major arguments of the neo-classical school's case against
economic aid. Do they have a point?
(iii) Outline the radical (Marxist) case against economic aid.
(iv) In view of the controversy surrounding the lack of effectiveness of aid consider
whether trade liberalisation would be a better means of development
assistance than aid.
(8) Development Strategies (1) Agrarian Structure, Reform and Strategy. Environmental
Consequences of green revolution strategy

Learning Objectives

appreciate the historical role of agriculture in economic development and

structural transformation;
have an understanding of the differences in agrarian systems and structures in
third world regions;
be aware of the potential for and difficulties of bringing about agrarian reform;
have a critical understanding of the green revolution as a strategy for resolving
food problems and its environmental consequences
References
1.* Todaro (2009 and 2011 or 2014) Chapter 9
2.* Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009), chapter 16.
3. Cypher and Dietz (2009), Chap. 11.
4. Secondi, Giorgio (ed) (2008), Part 5
5. Meier (2005) Section VII
6. Wilson, Clevo (2000) Environmental and Human Costs of commercial agricultural
production in South Asia, International Journal of Social Economics, Vol 27, No.
7/8/9/10, p816-846
7. Ghatak (2003) Chapter 8 and 9.
8. Farmer B.H. (1986) Perspectives on the Green Revolution in South Asia.
Modern Asian Studies, Vol.20 No.1 175-190.
9. Mellor J.W. & Johnston B.I. (1984) The World Food Equation: Interrelations among
Development, Employment & Food Consumption. Journal of Economic Literature, June
1984.
10. Shiva, Vandana(1991) The Violence of the Green Revolution.
11. Binswanger, Hans P. and Deininger, Explaining Agricultural and Agrarian Policies in
Developing Countries, Journal of Economic Literature, December 1997, pp 1958-2005
12. Norton, George W., Alwang, J and Masters, William M. (2006), The Economics of
Agricultural
Development, Routledge.

Issues for Student Reflection

Agrarian Strategies
(i) What is the significance of agricultural development in a successful
industrialisation strategy?
(ii) Why do agrarian systems remain incapable of feeding a developing countrys
population?
(iii) Is the green revolution strategy a better alternative than a land reform
programme?
(vi) What have been the environmental consequences of the green
revolution type of
strategy?
 (v) Does the development in biotechnology and spread of genetic
farming [GM foods] imply the end of global hunger?
(vi) Is there a case for increased food aid?
(9) Development Strategies (2) Industrialisation strategies of import substitution and
export promotion. Latin American and East Asian experiences. Asian crisis and its
implications for development strategy

Learning Objectives

appreciate the imperatives for industrialisation in developing countries and

the role of state as agent of industrialisation;
understand the typology of industrialisation strategies and the distinction
between the two trade-related strategies of export promotion and import
substitution;
have an understanding of the debates on Asian successes and Latin American
failures;
have a critical appreciation of the Asian model of development.

References

1. Todaro (2009 or 2014) Chapter 11

1. Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009), chapters 17-18.
3. Ingham, B(1995) Chapter 5 and 6
4. Masina, Pietro P. (ed) (2002) Rethinking Development in East Asia: From
illusory Miracle to Economic Crisis, Curzon (especially Introduction, p. 1-28)
5. Richter, Frank-Jurgen (ed) (2000)
The East Asian Development Model: economic
growth, institutional failure and the aftermath of
the crisis, Macmillan/St. Martins Press
[especially Introduction by Richter (pages 1-17) and Chapter 2 by Fred Robins, Asias
1997 Crash: its character, causes and consequences, pages 17-53)]

6. Lall, Sanjaya(1996) Learning from the Asian Tigers: Studies in Technology and
Industrial Policy, St. Martin's Press
7. Journal of Development Studies, Special Issue on Third World Industrialisation in the
1980's. Open Economies in a closing world. Vol.21, No.1 Oct. 1984.
8. Chandra, R (1992) Industrialisation and Development in the Third World, Routledge
9. Ghatak (2003) Chapter 7.
10. Hughes, H(1988) Achieving Industrialisation in East Asia, Cambridge University Press
11. Wade, R.(1990) Governing the Market: Economic Theory and the Role of the
Government in East Asian Industrialisation, Princeton University Press
12. Rudolph and Rudolph(1987) In Pursuit of Lakshmi: The Political Economy of the Indian
State, University of Chicago.
13. The World Bank(1994) The East Asian Miracle: Economic Growth and Public Policy, OUP
14. A. Krishna Dutt, K. Kim and A. Singh(1994)
The State, Markets and Development: Beyond the Neoclassical
Dichotomy, Edward Elgar
15. Ravenhill, John (1996)
The Political Economy of East Asia, Edward Elgar
 [This is a major (and very expensive) reference material in 6 volumes - available in Short
Loan Collection]
16. Cypher and Dietz(2009), Chap. 9 and 10 and 11
17. UNIDO (Various) Industrial Development: Global Report
18. Kiely, Ray (1998) Industrialisation and Development: a comparative analysis, UCL Press
KIE)
19. HA-JOON, Chang (2000), The Moral of Moral Hazard: Untangling the Asian Crisis, World
Development, vol. 28, no. 4, April
20. Jomo, K. S. (ed) (1998) Tigers in Trouble: financial governance, liberalisation and
crises in East Asia, Hong Kong University Press and Zed Books

Issues for Student Reflection

Industrialisation Strategies

(i) From what perspectives can an import substitution strategy be justified?

Would you accept that import substitution has no future as an industrialisation
strategy?
(ii) Can the East Asian Model of development be generalised for the Third World as
a whole? In light of the Asian crisis, does the model still provide lessons for
other developing countries?
(iii) To what extent have post-war patterns of industrialisation lead to sustained
economic development?
(iv) Would you agree with the view that the current pattern and nature of
industrialisation in the Third World merely leads to dependent development?
(10) Trade and Economic Development: Historical role of trade in economic
development, limits and problems of terms of trade in primary products; Newly Industrialising
Countries and exports of manufactured goods; Role of FDI in export growth and enhancing
competitiveness. Multilateral trading system and the developing world

Learning Objectives

have an understanding of the theoretical and historical link between trade and
economic development;
have an understanding of the international trading system and its impact on
developing countries;
appreciate the nature of problems facing primary commodity producers;
have an understanding of different policy options for increasing developing
country share from trade;

References

1.* Todaro (2009 and 2011 or 2014) Chapters 12 and 13

2.* Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009), chapter 9 and 12
3. Ingham, B(1995) Chapter 12
4. Secondi, Giorgio (ed) (2008), Part 7
5.* HDR (2005) Chapter 4 on Trade Unlocking the potential for Human Development.
6. Ghatak (2003) Chapter 7.
7. Lall, Sanjaya (1996), Learning from the Asian Tigers, St. Martin's Press
8. Toye J. & Smith S. (1979) Three Stories about Trade and Poor Economies, JDS Vol.15
No.3.
9. Finanace and Development Special Issue on Trade (2002) See especially articles by Anne
McGuirk (2002) The Doha Development Agenda, Finance and Development,
September, pages 4-7; Lankes, Hans Peter (2002) Market Access for Developing
Countries, Finance and Development, September, pages 8-15; Andrew Berg and Anne
Kreuger (2002) Lifting All Boats: Why Openness Helps Curb Poverty, Finance and
Development, September, pages 16-19

Issues for Student Reflection

Trade and Development

(i) What is the evidence on the historical link between trade and growth?
(ii) Is trade the engine or handmaiden of growth?
(iii) Are primary commodity producers condemned to perpetual poverty?
(iv) What factors prevent the successful diversification of exports from developing
countries?
(v) To what extent is the existing international exchange unequal? What policy options are
available to increase potential gains for the Third World?
(vi) Is there a link between trade and labour standards? How can labour standards be
enforced?
(11) Poverty, Human Development and Quality of Life: measuring human
development; Poverty: causes and consequences; hunger and famines; economic and
environmental consequences of rapid demographic change. Poverty alleviation policies.

Learning Objectives

appreciate the links between population pressures and environmental degradation;

have an understanding of the links between human capital development and economic
development;
appreciate different approaches to and measurements of poverty and nature of poverty
alleviation policies;
have an understanding of Sens Entitlements Approach and its policy implications

References

1.* Todaro (2009 and 2011 or 2014) Chaps 5, 6 and 8

2. Banerjee, Abhijit and Dufflo.Esther (2011) Poor Economics: A Radical Rethinking of the
Way to Fight Global Poverty, (PublicAffairs)
2. Clunes-Ross, Anthony, Forsyth, David and Huq, Mazammel (2009), chapters 1, 10, 25
3. Kelley A C (1988) Economic Consequences of Population Change in the Third World,
Journal
of Economic Literature, December
4. Secondi, Giorgio (ed) (2008), Part 3, 4.
5. Shorrocks, A and van der Hoeven, Rolph (2004) Growth, Inequality and pro-poor
economic development [338.91724 GRO]
6. Meier (2005) Sections IV and VIII
7. Rao, P.K. (2000) Sustainable Development: Economics and Policy, Blackwell
8. Finance and Development (2003) The Millennium Development Goals 5 articles,
December
9. Poulson, Barry(1994) Economic Development, Part 4 Chapters 9-11.
10.* HDR (2005) Chapter 2 on Inequality and Human development
11. Cypher and Dietz(2009), Chap. 12
12. World Development Report (2000/2001)
Attacking Poverty, Oxford University Press for the World Bank
13. UNDP (Various) Human Development Report, OUP
14. Mellor J.W. & Johnston B.F.
The World Food Equation, Journal of Economic Literature, June
1984.
15. Journal of Development Studies
Special Issue on Development and the Rural-Urban Divide
Vol.20 No.3. April '84
Special Issue on Beyond Urban Bias, ed. by Ashutosh Varshney,
July 1993
16. Schumacher E.F. (1973) Small is Beautiful: Economics as if people mattered.
17. Sen, Amartya (1981) Poverty and Famines: An essay on entitlement and
deprivation, Clarendon Press

Issues for Student Reflection

Problems of Poverty and Income Distribution
(i) How do we measure poverty? Who are the victims? What are the
major causes of poverty in developing countries?
(ii) To what extent does the urban bias thesis help explain the problems of
poverty and underdevelopment in the third World?
(iii) What are the policy implications of Sens Entitlements Approach?
(v) Economic development in the Third World is synonymous with
industrialisation, capitalism and urban growth. In recent years such a view has
come under considerable criticism - a critique for industrialisation has emerged
from a number of different perspectives. Consider the arguments of:
(a) the neo-populist
(b) ecological/environmental
(c) alternative technology critiques of industrialisation.
Do these critiques provide a basis for a viable and sustainable
alternative development strategy?