Baylor University Fall Semester 2005

ECONOMICS 5334 Joseph A. McKinney

Off. Hrs MWF 9:30-11:00
ECONOMIC DEVELOPMENT T 2:00-5:00, or by appt.
HCB Room 305 Hankamer 332 (McBride Ctr.)
Joe_McKinney@Baylor.Edu Voice Mail: 710-6141

Web Page: http://hsb.baylor.edu/html/McKinney

Main Text:

Michael P. Todaro and Stephen C. Smith, Economic Development, Ninth Edition 2006,
Addison and Wesley

A web site is available to accompany this text that has helpful student resources, such as
links to resources, quizzes for each chapter, recommended readings, and internet
exercises. The URL is http://www.aw-bc.com/todaro_smith. Also, the site has a
message board which will enable you to discuss development issues with students from
all over the world. I strongly encourage you to establish dialogue on economic
development issues with a person in the country that you are studying.

Supplementary Text

World Bank, World Development Report 2005: A Better Investment Climate for Everyone.
Oxford University Press

While the focus of the most recent World Development Report is on establishing a
favorable investment climate, and its importance for economic progress, this publication
makes clear that several different aspects of economic development are involved in the
process. Study of this text will expose you to cutting-edge thinking on these issues by the
World Bank staff.

Virtually unlimited resources concerning Economic Development are now accessible on

the Internet. You can find links to some of these on my web page, and others on the web
site for the Todaro and Smith text. In addition, you have access to a huge collection of
economic and social data, compiled by the World Bank, by virtue of Baylor's institutional
subscription to World Development Indicators 2005. Detailed information about this
resource is available at http://devdata.worldbank.org/dataonline/

Graduate students will be held to a higher standard than the undergraduates with regard
to sources used and level of analysis in carrying out the in-class reports and the term
project. Graduate student individual reports must summarize scholarly articles available
from www.SSRN.com.

Powerpoint slides of the lectures for this course are available to you in my folder in the J-
drive of the Business School, and should soon be on Blackboard as well.

TOPICS:

PART ONE: PRINCIPLES AND CONCEPTS

I. The Meaning, Dimensions and Measures of Economic Development

Read Chapter 1 of Todaro and Smith

Case Study: Progress in the Struggle for More Meaningful Development: Brazil
(pp.27-32)

II. Comparative Development:

Differences and Commonalities among Developing Countries

Read Chapter 2 of Todaro and Smith

Case Study: Divergent Development: Pakistan and Bangladesh (pp. 84-89)

III. Classic Theories of Economic Development

Read Chapter 3 of Todaro and Smith

Case Study: Schools of Thought in Context: South Korea and Argentina
(pp. 126-129)

I. Contemporary Models of Development and Underdevelopment

Read Chapter 4 of Todaro and Smith

Case Study: Schools of Thought in Context: South Korea and Argentina
(pp. 241-247)
PART TWO PROBLEMS AND POLICIES: DOMESTIC

II. Poverty, Inequality and Development

Read Chapter 5 of Todaro and Smith

Read Overview of World Development Report 2005 (pp. 1-15)
Case Study: Making Microfinance Work for the Poor (pp. 241-247)

III. Population Growth and Economic Development

Read Chapter 6 of Todaro and Smith

Read Chapter 1 of World Development Report
Case Study: Population, Poverty and Development: China and India
(pp. 302-305)

IV. Urbanization and Rural-Urban Migration

Read Chapter 7 of Todaro and Smith

Read Chapter 2 of World Development Report 2005
Case Study: Rural-Urban Migration and Urbanization in Developing Countries:
India and Botswana (pp. 349-353)

V. Human Capital: Education and Health in Economic Development

Read Chapter 8 of Todaro and Smith

Read Chapter 3 of World Development Report 2005
Case Study: AIDS--Economic Development and Needed Response:
Uganda and South Africa (pp. 407-411)

VI. Agricultural Transformation and Rural Development

Read Chapter 9 of Todaro and Smith

Read Chapter 4 of World Development Report 2005
Case Study: Improving Agricultural Extension for Women Farmers:
Kenya (pp. 457-461)

VII. The Environment and Development

 Read Chapter 10 of Todaro and Smith
Read Chapter 5 of World Development Report 2005
Case Study: Economic Growth and Sustainability:
The Philippines (pp. 503-509)

XI. Development Policymaking and the Roles of Market, State and Civil Society

Read Chapter 11 of Todaro and Smith

Read Chapter 6 of World Development Report 2005
Case Study: A National Development NGO: The BRAC Model
(pp. 561-564)

PART THREE PROBLEMS AND POLICIES: INTERNATIONAL AND MACRO

XII. Trade Theory and Development Experience

Read Chapter 12 of Todaro and Smith

Read Chapter 7 of World Development Report 2005
Case Study: Taiwan: A Development Success Story (pp. 548-550)

XIII. The Role of Trade Policy in Development

Read Chapter 13 of Todaro and Smith

Read Chapter 8 of World Development Report 2005
Case Study: Industrial and Export Policy: South Korea (pp. 654-658)

XIV. Macroeconomic Stabilization and Third World Debt

Read Chapter 14 of Todaro and Smith

Read Chapter 9 of World Development Report 2005
Case Study: Mexico: Crisis, Debt Reduction, and the Struggle for
Renewed Growth (pp. 687-691)
Read Appendix 14.1: The World Bank and the International Monetary Fund

XV. Foreign Finance, Investment and Aid: Controversies and

Opportunities
 Read Chapter 15 of Todaro and Smith
Read Chapter 10 of World Development Report 2005
Case Study: Botswana: African Success Story at Risk (pp. 731-734)

XVI. Finance and Fiscal Policy for Development

Read Chapter 16 of Todaro and Smith

Case Study: Chile and Poland: Privatization: What, When and to Whom?

XVI. Some Critical Issues for the Twenty-First Century

Read Chapter 17 of Todaro and Smith

Grading:

Grades will be assigned as follows:

Exam I 20%
Exam II 25%
Final Exam 30%
Research Project 10%
Group Reports 8%
Individual Reports 7%

The class will be divided into teams of 5 or 6 students who will work together to analyze
the economic development of a given country (or group of countries). Each class period
will begin with lecture, which will be followed by a group report on how the subject matter
under discussion relates to the country that they are studying. Peer evaluation will to a
large extent determine the grade received on the team reports. Students are encouraged
to be creative in the use of Internet resources, and to strive to make their reports as
interesting and informative as possible. In addition to the oral report, a one-page written
summary should be turned in after each presentation.
Each student will also be required to make three individual oral reports on articles
concerning some aspect of economic development. Many such articles are available
online through Baylor's subscription to the Social Sciences Research Network
(www.SSRN.com), through other electronic resources accessible through the Moody
Library web page, and in such print publications as World Development. In addition to
the oral presentation, a one-page written summary should also be submitted.

The research project involves in-depth study of some aspect of economic development of
the chosen country. In a 2-3 page Executive Summary, a concise statement should set
forth the nature of the problem or issue being studied, and then should present policy
recommendations for addressing it. Charts, graphs or tables may be submitted as
supporting documentation. A complete list of references to sources consulted should be
attached. The deadline for submitting the results of the research project is Friday,
December 2.

Exam Dates and Policy

The date for Exam I is Wednesday, September 28, and for Exam II is Monday, November
14. The Final Exam is scheduled for Monday, December 12 at 4:30 PM. No make-up
exams will be given. If an exam must be missed and is excused according to university
policy, the grade for that exam will be based upon the average of the other exams taken,
including the final exam.