Bulletin Board
for

Development Management under Globalization
(DMUG)

2nd Semester, 2009-2010


"Development Management under Globalization" is a selective and applied course in the Economic Development Policy and Management Program.

This course deals with the frontier-yet-fundamental issues of eDevelopment Management under Globalization (ƒOƒ[ƒoƒŠƒ[[ƒVƒ‡ƒ“‰บ‚ฬŠJ”ญƒ}ƒlƒWƒƒ“ƒg)f.@The course covers selected topics such as: economic development under the changing environment of globalization (risks and benefits associated with globalization, rise and demise of the East Asian growth model, Africafs marginalization, convergence club under globalization); international trade and development (inward- vs. outward-oriented development strategies and trade reforms, regionalism vs. multilateralism, WTO and industrial promotion); external financing of development (ODA, FDI and multilateral corporations, portfolio flows, debt & financial crises); managing open-economy development (BOP management, the order of liberalization, exchange rate regimes and monetary policy rules, fiscal sustainability, crisis management); and toward governance and quality of growth under globalization (growth and equity under globalization).

Development Economics, Development Microeconomics and Development Macroeconomics are prerequisites for this course. Basic knowledge of statistics/econometrics (Development Statistics) will be preferred. (However, as I would like to accommodate those who are interested in the issues of Globalization and Development, minimum reviews of Microeconomics and International Trade/Finance theories may be given in relation to the subjects covered in the course.) Consecutive enrollment from Development Economics will be highly effective.

Date of Entry

Messages
December 13, 2009 December 15 will be the last lecture in this calender year.

As many of you indicated that you would head for the Christmas recess at the end of this week, there will be no lecture on the 22nd.

Please kindly prepare for a short lunch on the 15th. As I will have to lecture past noon, most likely.

January 12 will be the first lecture in the calender year of 2010.

November 16, 2009
(updated on
December 13)
January Lectures

We will discuss "Trade and Development; WTO".

We will study some trade theories (benefits, costs of protection), development strateties w.r.t. trade, and WTO principles/policy space.

**********************************************
Required Readings for These Lectures:

1) ***World Bank, World Development Report 2000\Entering the 21st Century,
Chapter 2: The Wolrd Trading System: The Road Ahead.

2) **WTP Chs. 1,2, and 3; ED (10th ed.: Ch.12)(9th ed.: Ch.12).
3) **
WTP Chs. 10,11; ED (10th ed.: Ch. 12)(9th ed.: Ch. 13).
Those who have studied basic theories of benefits of trade and cost of protection in Development Microeconomics, read only ED Chapters 12 and 13. Those who have not yet studied basic trade theories, go through WTP Chapters, too.

4) Following four articles

*Jeffrey D. Sacks and Andrew Warner, "Economic Reform and the Process of Global Integration," Brookins Papers on Economic Activity, 1:1995.
[PDF file is here.]

*David Dollar, "Globalization, Poverty, and Inequality since 1980," Policy Research Working Paper No. 3333, The World Bank (2004).
[PDF file is here.]

*David Dollar and Aart Kraay, "Trade, Growth, and Poverty," Policy Research Working Paper No. 2615, The World Bank (2001).
[PDF file is here.]

*Branko Milanovic, "Can We Discern the Effect of Globalization on Income Distribution? Evidence from Household Surveys," World Bank Economic Review, Vol.19, No.1, pp. 21-44 (2005).
[PDF file is here.]

5) DTW: Selected Chapters- ** Ch.6; * Chs. 8,9, 17,18,19, 24, 47 and 48.-
Also visit the following WTO website in advance:
a) top page:
http://www.wto.org/
b) a navigational guide:
http://www.wto.org/english/thewto_e/whatis_e/tif_e/fact1_e.htm
c) the system of agreements:
http://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm1_e.htm

6) **ED (10th ed.: Ch. 16)(9th ed.: Ch. 17).

Other readings shown in the Part V of the Course Schedule.

You should try to finish reading as much as possible before coming to Janaury lectures. All the required readings should be done by the end of January.

****************************************************

November 16, 2009
(updated on
December 13)

Mid-November -- December Lectures

We will discuss "A Big Picture" and "External Finance of Development".

Two sets of handouts will be distributed. (B1-15, C1-#)

For lecture presentations, I will use selected slides fromF

Understanding the Big Picture

•

Globalization in Development Finance and Financial Crises

*****************************************************************
Required Readings for These Lectures:

***WTP: Chs. 16,24; EDi10th ed.:Ch.13 and Ch.14)i9th ed.:Ch.14 and Ch.15)

**World Bank, World Development Report 2000\Entering the 21st Century,
Chapter 3: Developing Countries and the Global Financial System.

**M. Ayhan Kose, Eswar Prasad, Kenneth Rogoff, and Shang-Jin Wei, "Financial Globalization: A Reappraisal," IMF Working Paper, WP/06/189 (August 2006).
[PDF file is here.]

*Shigeru Otsubo, "Computational Analysis of the Economic Impacts of Japan's FDI in Asia", Forum of International Development Studies, Vol. 28, GSID, Nagoya University (March 2005).
If you are interested in FDI-related issues, you should read this paper.

***************************************************************
Additional Readings for Those interested in Financial Crises:

Globalization in Development Finance and Financial Crises
***Ken Kuttner and Rafael M. Samano-Palacios, "The Mexican Financial Crisis: A Case Study," (1996).
A Case Study to be distributed in class.
*Joseph E. Stiglitz, Globalization and Its Discontents, W.W. Norton, 2002.
Ch.4: The East Asia Crisis

Economic Governance and Crisis in Emerging Economies
*Yoichiro Ishihara, "Economic Governance and Economic Performacne in Developing Countrires," Forum of International Development Studies, Vol. 19 (Oct, 2001)
Download and read the full paper if your are interested!

Also visit and take a look at the following documents.

Letter of Intent of the Government of Thailand to IMF
(August 14, 1997)
The first LOI in the midst of the financial crisis.

The IMF's Response to the Asian Crisis: A Factsheet
(January 17, 1999)
The IMF's accounts of the facts of IMF's response to the AFC.

Recovery from the Asian Crisis and the Role of the IMF
(June 2000)
A summary (by IMF staff) of the Asian recovery.

For those who do not understand IS-LM framework, you should consult with a textbook on Macroeconomics (those used in Development Macroeconomics (Prof. Osada).

October 4, 2009

For those who could understand Japanese, you should attend
The GSID Open Lecture "Globalization and Development"
Every Tuesday 6:30-8 pm. at GSID Auditorium
October 6 - December 8 (9 sessions by 9 instructors)

‚s‚…‚˜‚”‚‚‚‚‚‹F‘ๅ’ุŽ •า wƒOƒ[ƒoƒŠƒ[[ƒVƒ‡ƒ“‚ฦŠJ”ญx ™ค‘‘–[@(2009)

October 6 (6:30-8 pm) Lecture by Prof. Otsubo
Handout (4 slides on one page)
Handout (2 slides on one page)

October 4, 2009 Presentation Materials (more to come)

Globalization and Developing Countries--An Overview:

**Prof. Otsubo's HOs for Globalization--Brain Storming.
[PDF file is here.]

**Prof. Otsubo's HOs for History Lessons
[PDF file 1 is here.] [PDF file 2 is here.] [PDF file 3 is here.]

The most of these materials should be comvered in the lecture. If not, those remailing should be for your self-study.

October 4, 2009
(updated on November 16)

Required Readings in October - mid November: Introduction

Textbooks: BOP & Trade/Investment and Development

**Richard E. Caves, Jeffrey A. Frank el, and Ronald W. Jones, World Trade and Payments: An Introduction, 10th Ed., Addison-Wesley, 2007. [Textbook for International Economics]
Read Chapter 1 (1.1 & 1.2): Introduction; Chapter 15: The Balance of Payments Accounts; and Chapter 2: The Gains from Trade.

**Michael P. Todaro, Stephen C. Smith, Economic Development, 9th edition, Addison Wesley, 2005. Read Chapter 14: Balance of Payments...., first, for now. (Then Chapter 15, 12, 13, and 17.)
Economic Development,
10th edition, Addison Wesley, 2005. Read Chapter 13: Balance of Payments...., first, for now. (Then Chapter 14, 12, and 16.)

Other Required and Recommended Readings

**World Bank, Globalization, Growth, and Poverty (2002).
Read Overview and Chapter 1: The New Wave of Globalization and Its Economic Effects.

*Assessing World Bank Support for Trade 1987-2004: An IEG Evaluation
Read Executive Summary and any sections that you are interested.
The
World Bank was overly optimistic about the immediate and universal benefits of more open trade.
This critical independent evaluation report confirms that liberalizaing trade alone is not enough to generate growth and fight poverty.

**World Bank, World Development Report 2000\Entering the 21st Century.
Read Overview, Introduction, Chapter 1, Chapter 3 and Chapter 2 in this order.

*Jeffrey D. Sacks and Andrew Warner, "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, 1:1995.
[PDF file is here.]

*Ann Harrison, "Openness and growth: A time-series, cross-country analysis for developing countries, Journal of Development Economics (48)2(1996), pop. 419-447.
[PDF file is here.]

*David Dollar and Aart Kraay, "Trade, Growth, and Poverty," World Bank Policy Research Series, No. 2615 (June 2001).
[PDF file is here.]

*David Dollar, "Globalization, Poverty, and Inequality since 1980," Policy Research Working Paper No. 3333, The World Bank (2004).
[PDF file is here.]

*Bussulo and Nicita, "Trade Policy Reforms," in Coudouel and Paternostro eds., Analyzing the Distributional Impact of Reforms, The World Bank (2005).

*Kose, Prasad, Rogoff, and Wei, "Financial Globalization: A Reappraisal" IMF Working Paper No. WP/06/189, The IMF (2006).
[PDF file is here.]

** Required Readings

* Recommended Readings (some of them will become required later)

means that you can find this book in the GSID library (restricted book section, under my name).

October 4, 2009

You will read the following chapters of our Textbooks in this course.

ED: Michael P. Todaro, Stephen C. Smith, Economic Development, 9th edition, Addison Wesley, 2005.
[To be referred as Economic Development or ED, henceforth.]
[Textbook for Development Economics]
We will use:
**Chapter 12: Trade Theory and Development Experience,
**Chapter 13: The Trade Policy Debate: Export Promotion, Import Substitution, and Economic Integration
**Chapter 14: Balance of Payments, Developing-Country Debt, and the Macroeconomic Stabilization Controversy
**Chapter 15: Foreign Finance, Investment, and Aid: Controversies and Opportunitites
**Chapter 17: Some Critical Issues for the Twenty-First Centrury

WTP: Richard E. Caves, Jeffrey A. Frankel, and Ronald W. Jones, World Trade and Payments: An Introduction, 10th ed., Addison-Wesley Pub. Co., 2007.
[Textbook for International Trade and Finance]

**Chapters 1, 2, 3, 10, 11, 15, 16, and 24 (Required)
*Chapters 4, 5, 6, 9, 13, 14, 20, and 21 (Recommended)

(You can use relevant sections of any newer editions.)

October 4, 2009

(updated on October 12, 2009)

First class of Development Management under Globalization (DMUG) for 2009-2010 will meet on Tuesday, October 13.


Development Economics, Development Microeconomics and Development Macroeconomics are prerequisites for this course. Basic knowledge of statistics/econometrics (Development Statistics) will be preferred. (However, as I would like to accommodate those who are interested in the issues of Globalization and Development, minimum reviews of Microeconomics and International Trade/Finance theories may be given in relation to the subjects covered in the course.) Consecutive enrollment from Development Economics will be highly effective.

If you are not certain either you are qualified to take this course or not, pls. consult with this instructor at the end of the first lecture.

October 13: (10:30 a.m. - 12 noon; #3 Lecture Room, 6th floor)

1) Introduction to DMUG (course syllabus, course requirements, etc.)

We may move to a smaller lecture/seminar room after the first meeting, for more class-room discussions.

Regularly pay attention to
1) "Development Management under Globalization (DMUG)", our on-line course syllabus,
2) "Exploration of Economics/International Development Resources", our internet resources, and
3) this Bulletin Board.
Course announcements will be made through this DMUG BB.

Development_with_Globalization_Presentation
Download and use this as your note.

Again, welcome back to GSID !! See you all on Tuesday, October 13 !!


Prof. Otsubo