Lahore University of Management Sciences

Econ 247– Sectors and Policy in Development

Fall 2019-2020

Instructor Dr. Hadia Majid

Room No. 253
Office Hours Wednesdays 1145-1245
Email hadia.majid@lums.edu.pk
TA Office Hours TBA

COURSE BASICS
Credit Hours 4
Lectures Nbr of Lec(s) Per Week 2 Duration 110 minutes each
Tutorials Nbr of Lec(s) Per Week None Duration N/A

COURSE DISTRIBUTION
Core
Elective Yes
Open for Student Category Sophomores
Closed for Student Category

COURSE DESCRIPTION

This is a seminar course in development economics, which will examine some aspects of the economic problems and potential of developing
economies. The course is designed to provide a basic overview of (some) micro and mostly macro elements. The main purpose of the course will be
for students to critically analyse and present policy options for key sectors and predominant issues faced by developing countries. The course
entails extensive reading and writing, with the objective that students should be able to engage with and reflect on arguments in a critical manner,
develop their arguments systematically, and polish their academic writing skills.

IMPORTANT DETAILS
I expect you to regularly check LMS. Be sure to check the course calendar for deadlines and quiz announcements. Announcements related to
exams, quizzes and course material will either be made via LMS or in class. DO NOT EXPECT EMAILS. There will be a 5-minute rule. This will be
strictly implemented. If you use a cell-phone during my lecture or talk amongst yourselves expect to be called out. I spend a tremendous
amount of time and care to prepare my slides – this is an elective course – if the material does not interest you, LEAVE.

ACADEMIC MISCONDUCT
Academic integrity is essential to maintaining an environment that fosters excellence in teaching, research, and other educational and
scholarly activities. The term “academic misconduct” includes all forms of student academic misconduct wherever committed; illustrated by, but
not limited to, cases of plagiarism and dishonest practices in connection with examinations. Instructors shall report all instances of alleged
academic misconduct to the disciplinary committee. Ignorance of the University’s code of student conduct is never considered an “excuse” for
academic misconduct; please review the Values & Ethics document available on the LUMS Portal, and the discussion related to disciplinary
procedures in the student handbook.

MISSED QUIZZES AND EXAMS

The petitions for all instruments with a weight of 10% or more are handled by the OSA. It is your responsibility to read up on policies regarding
these petitions. I will be accepting petitions only for instruments with a weight less than 10%. These must be submitted within 3 working days of
the missed instrument. All petitions must be made on the proper forms with any supporting documentation attached. No petitions will be
accepted for the paper, assignments, or the presentation.
COURSE PREREQUISITE
 Principles of Macroeconomics OR Principles of Microeconomics
 COURSE OBJECTIVES

 Appreciate the scale and diversity of key development problems of poor countries

 Have an understanding of key sectors of the economy 

 Form an analytical view and critical opinion about said sectors within low-income countries

GRADING BREAKUP
Class Participation 5%
Assignments (3) 20%
Quizzes (2) 15%
Final (comprehensive) 35%
Presentation 10%
Policy Paper 15%

INSTRUMENT DETAIL

A question based off of the course material will be posed and you will be asked to write academic papers of 5-6 pages
Assignments
each. All papers must be individually written – any plagiarism and/or cheating will result in the case being forwarded to
the DC.

Marks for the assignments will be based on 1. Course content 2. Style of writing – flow of argument, grammar, syntax 3.
Rules of academic writing – in-text citation, bibliography. You will receive two rounds of feedback on your paper. 60% of
your marks will be awarded upon your initial submission, 40% of your marks will be awarded upon revision and
resubmission of your paper based on the feedback.

No petitions will be accepted for either of the components of the assignments.

Each student will be asked to make a presentation on the chapter/paper/article being taught in that week. Students will
Presentation be randomly assigned to lectures and randomly paired – you will be told of your presentation one week in advance.

Marks will be given individually and each presentation must be 7 minutes long – time under or over will be penalized.
Students must use their time to highlight the main points being discussed by the author, and any stats in the paper must
be updated to the latest figures. Credit will be given to those who show connection of the material they present with
material previously taught and with the local Pakistan context.

No petitions will be accepted for the presentations.

Policy Paper Students will be paired up for the policy briefs. A topic will be announced and students must write a 5-7 page (12 font, 1.5
spaced) response critically analyzing the topic. There will be a data component to this instrument. See details on LMS.

No petitions will be accepted for the policy paper.

Studying for a 4-unit course:

In most universities: 1 unit  1 hour of lecture time + 2 hours per week of homework.
For LUMS: 4 units  220 minutes of lecture time + at least 7 hours of homework. Per week. So, read!
 COURSE OVERVIEW
Topics
0 Micro Topics in Development
In this topic we will consider the living conditions and working lives
of the poor. We will also think through poverty, growth, and the
strategies that low-income economies can adopt to combat
poverty. This provides context and an overview of what it is that we
are trying to improve and “develop”
1 Agriculture and Development
In this topic we will look at the agriculture sector and its role in the
development process. Key modes of organization in the sector as well as the
major constraints will be considered
Readings
Understanding the Living Conditions of the Poor:
Duflo, Esther and Abhijit Banerjee. 2007. “The Economic Lives
of the Poor.” Journal of Economic Perspectives. 21(1), 141-
167. Available online at http://economics.mit.edu/files/530
Addison, T. (2004). Development Policy: An Introduction for
Students. Wider Discussion Paper No. 2004/9.
https://www.researchgate.net/publication/23780567_Develo
pment_Policy_An_Introduction_for_Students
Todaro 9
Perkins 16
Economist “Hunger Always with Us ”
http://www.economist.com/node/1177418
2 Industry and Development Perkins 18

The industrial sector, protectionist policies as well as SMEs will Foqia Sadiq Khan “Industrial Development”
be examined in this chapter https://dailytimes.com.pk/399066/industrial-development/

Jawaid Bokhari “Protectionism and free trade”

https://www.dawn.com/news/1314512

3 The Environment and Development Todaro 10

Perkins 20
We will consider the primary reasons why we continue to see Lecomber, R. 1975 “Economic Growth versus the Environment” Macmillan
a failure of a cohesive reaction against environmental Press. Available at the LUMS library
degradation as well as how the problem arises
Sanval Nasim: Economics of Climate Change
https://www.dawn.com/news/1508040/economics-of-climate-
change

4 Trade Policies Todaro: Chapter 12 (pp. 628-634 not included)

This topic includes a critical overview of the main strands in Asad Zaman “Rupee Overvaluation”
trade theory applied to developing countries. https://www.dawn.com/news/1483223/rupee-overvaluation
5 Balance of Payments, Debt & Macroeconomic Stabilization Todaro 13

This topic reviews the causes and consequences of the international Abhijit Banerjee and Esther Duflo, “What do Banks (not) do?” MIT
debt crisis. It looks at the processes of debt accumulation, repayment, Manuscript 2004.
and the nature, implementation and consequences of stabilization and http://economics.mit.edu/files/510
structural adjustment programs.
Overseas Development Institute (1995). “Poor Country Debt: A Never
Ending Story”, Briefing Paper No.1.
http://www.odi.org.uk/resources/docs/2650.pdf

6 Foreign Finance, Investment & Aid Todaro: Chapters 14: subsections on remittances and foreign aid (pp
733-734 not included) & Chapter 15
This topic analyses the financing of development. It also reviews the
role of foreign capital in development, including foreign direct Easterly (2006) “Planners Versus Searchers in Foreign Aid” ADB
investment by transnational companies, portfolio investment, and the http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2
&ved=0CFMQFjAB&url=http%3A%2F%2Fciteseerx.ist.psu.edu%2Fviewd
strategy and implications of domestic financial liberalization and
oc%2Fdownload%3Fdoi%3D10.1.1.177.3136%26rep%3Drep1%26type%
capital account liberalization. The need for foreign aid in developing 3Dpdf&ei=g33vT9C2M6fY6wHzzuiQBg&usg=AFQjCNFEmpsOC9To8XI7yx
countries and the role played by it will also be discussed. OIuUFMum91Mw

Foreign Aid: Good or Bad?

https://www.imf.org/en/News/Articles/2015/09/28/04/53
/soint090910a

Economist “A Matter of Trust” February 15, 2001

http://www.economist.com/node/505181
Material: The course will be taught through chapters from relevant books and articles. Course pack is available on the library portal. Latest edition of
Todaro is available in the market.

Main texts: Todaro, Michael P. and Stephen C. Smith, Economic Development, Twelfth Edition, Addison-Wesley, 2008. The website
http://wps.aw.com/aw_todarosmit_econdevelp_10/ is also extremely useful.

Perkins Dwight H., Steven Radelet, and David L. Lindauer, Economics of Development, 6th Edition, New York, W. W. Norton, 2006

There are several articles included in the assigned reading, details given with topics covered. You should be able to download these using the links
provided