Bulletin Board
for
Development Economics


"Toward New Political Economy of Development"


Core Course for
Economic Development Policy & Management (EDP&M) Program

1st Semester, 2006-2007


As the core discipline subject of the DIDfs Economic Development Policy & Management (EDPM) Program, this course offers key principles and issues of Economics of Development bearing the needs of first-time learners in mind. Topics to be covered are: 1) the role of economic development in gdevelopmenth and poverty reduction (in conjunction with attaining the MDGs); 2) the evolution of economic development thoughts; 3) the stylized facts in economic development (open and closed questions); 4) theories of development (traditional and new growth theories); 5) dualistic development and structural change (growth, poverty, and income distribution; rural-urban dichotomy); 6) education and development; 7) sustainable development (the environment and development); 8) trade and development (import substitution, export promotion, and globalization); 9) financing development (capital and saving, financial system and development); 10) guiding development\markets vs. controls (the role of government in development, good governance); 11) development and institutions; and 12) new development challenges in the 21st century (globalization, international economic system, peace building, growth fetishism (?), etc.)

Date of Entry

Messages
At the end of this lecture. Course Evaluation:

I will circulate, in the upcoming class, course evaluation forms for you to make 'hopefully constructive' comments in order for us to improve this EDP&M core course.

Those who wish not to prepare this form with your handwriting are kindly requested to download, in advance, one of the following two forms, process it by your PC software, and bring it with you to the class (July 19 or 25).

English: Course Evaluation Form - Development Economics - 2006 - English

Japanese: Course Evaluation Form - Development Economics - 2006 - Japanese

Thank you in advacne for you cooperation in this course evaluation. Your inputs will be assets for me in providing better lectures in the future. (Prof. Otsubo)

July 20 Last Lecutre on July 25:

1) Supply of Public Goods, Non-Cooperative Game Experiments

2) Course Wrap-up

3) Take-home Fine Exam

4) Course Evaluation

Please bring a calculator with you to the calssroom.

July 3 Lecutre on July 3:

1) Two-Sector Models and their implications on trade liberalization, income distribution.

2) Rural-Urban Migration, Urbanization, and Integrated Rural Development.


Market Experiments will be conducted in Lectures on July 10 and July 17, with sum-up discussion on July 25.

Lectures on July 10 and 17 will be extended lectures and will last till 12:30 pm. Please plan accordingly.

June 19
July 22
(Updated)
Lectures in July

After going through the theories of development, we will turn to the issues of the roles of governments and markets in development, i.e., Markets vs. Government Controls in Guiding Development.

Remember that the new (endogenous) growth models are pointing to the importance of "Coordination (for investments)" and the role that public sector can/should play in it.

We will conduct a series of market experiments and touch upon the issues of Governance and Institutions (and Institutional Economics).


Reading Requirements:

**Economics of Development, 5th ed.
Chapter 5: Guiding Development: Markets versus Controls.

OR
**Economic Development, 9th ed.
Chapter 11: Development Policymaking and the Roles of Market, State, and Civil Society.


**
Economic Development, 9th ed.
Chapter 4 (pp. 145-155: Coordination): New Endogenous Growth Theory leads to the importance of the 'Coordinating Role' of government in providing sufficient incentives for investments (that create externality for IRTS).



**Development as Freedom.
Read Chapter 5: Markets, State and Social Opportunity.

**Yoichiro Ishihara, "Economic Governance and Economic Perform acne in Developing Countries," Forum of International Development Studies, Vol. 19 (Oct, 2001)
Excerpts will be distributed in the class.
Download and read the full paper!

June 19 June 20 Lecture:

Subjects: Neoclassical Growth Theory and New Endogenous Growth Theory

Reading Requirements:

**Economics of Development, 5th ed., Chapters 2.
OR

**
Economic Development, 9th ed., Chapters 3 and 4.

**Robert J. Barro, Determinants of Economic Growth: A Cross-Country Empirical Study, MIT Press, 1997.
Read Chapter 1: Economic Growth and Convergence. [To be discussed in the class.]


June 27 Lecture:

Subjects: Two-Sector Model and Migration Model

Reading Requirements:

**Economics of Development, 5th ed., Chapters 3 (pp. 83-99).

**Economics Development, 9th ed., Chapter 7.
'Migration and Development' (**) and 'Toward an Economic Theory of Rural-Urban Migration' (**)) for the Migration Model. (*) for other sections.




Additional Reading Requirements: (for Students in the EDP&M Program)

**Leading Issues in Economic Development, 8th ed., Chapter I.C.
OR
**Leading Issues in Economic Development, 6th ed., Chapters II.B, II.C, and III.
[For the 6th ed., Japanese Version is available as u‘ÛŠJ”­ŒoÏŠw“ü–åv]



Additional Reading Requirements: (for Students in the Rural/Regional Development Program)

**Economics of Development, 5th ed., Chapter 15: Agriculture and Chapter 16: Primary Exports.
AND

**
Economic Development, 9th ed., Chapter9: Agricultural Transformation and Rural Development.

April 26
May 7
May 12
(Updated)
With three introductory lectures of Development Economics and two I2ID lectures during the month of April. We have almost completed the introductory part of Economics of Development, i.e. issues, concepts, stylized facts, and above all, the way of thinking.

You should complete reading all of the ** items in the first section of the reading list by the end of the month. Going into the month of May, you will start reading items in the second section of the reading list. Almost all of the theoretical/conceptural papers of development theories are now ready for you to download from our online syllabus or to copy from the binder in the reserved section of the GSID library. Those who wish to expose themselves to original works should take up some of these academic journal papers.

We will not meet on May 2, as many of you go out of town during the 'Golden Week'.


May 9 Lecture:

Subjects: Settled Questions, Open Questions

Reading Requirements:
**Frontiers of Development Economics:
(**)gDevelopment Issues: Settled and Openh by Shahid Yusuf and Joseph E. Stiglitz,
[Read and see either you can agree with those or not. I will ask your opinions on the major questions.]


**Class Handouts


Subjects: Evolution of Economic Systems

Reading Requirements:
**Presentation Material



May 16 Lecture:

Subjects: An Overview of Growth Models/Theories

Reading Requirements:
**OnLine Tutor in Development Economics
Go through section 3: Theories and Models Linked to Development.
**Robert J. Barro, Determinants of Economic Growth: A Cross-Country Empirical Study, MIT Press, 1997.
Read Chapter 1: Economic Growth and Convergence. [Already discussed in class. Confirm your understanding.]
OR
Prof. Barro's paper "Economic Growth in a Cross Secion of Countries" in The Quarterly Journal of Economics (May 1991)
*David Ricardo, "On Foreign Trade," Chapter 7 in On the Principles of Pollitical Economy and Tazation (1817).
[Download and read this theory of 'Comparative Advantage.']


May 16 Lecture - May 23 Lecture:

Subjects: Production Functions, Basic Growth Model, and Harrod-Domar Growth Model

Reading Requirements:
**Economics of Development, 5th ed., Chapters 2, pp.27-43.

**Leading Issues in Economic Development, 8th ed., Chapter I.C.
OR
**Leading Issues in Economic Development, 6th ed., Chapters II.B, II.C.
[For the 6th ed., Japanese Version is available as u‘ÛŠJ”­ŒoÏŠw“ü–åv]


Read the following textbook chapters in the Month of May.
**Economics of Development, 5th ed., Chapters 2 and 3.
OR

**
Economic Development, 9th ed., Chapters 3 and 4.

April 10, 2006 The two EDP&M sessions (April 19: Evolution of Development Economics; April 26: Growth-Poverty-Inequality) in Introduction to International Development (I2ID) in the month of April will be an integral part of this Development Economics. Do not miss them!

EDP&M will host April 19 and 26 sessions in Introduction to International Development (I2ID).

I2ID 2006

Sessions by Economic Development Policy • Management Program

Session I on April 19 (by Prof. Otsubo)

The Review and Overview of Development Thoughts by Economists

Session II on April 26 (by Prof. Ezaki)

Poverty, Inequality, and Development


Session I on April 19 (by Prof. Otsubo)

The Review and Overview of Development Thoughts by Economists

A review of development thinking by economists will be presented, focusing on what development economists thought the major cause(s) of poverty. Then the roles of Economic Growth/Development in eDevelopmentf should be discussed. Benefits and limits of Income Growth will be revisited in the context of the ePoverty as Capability Deprivationf, and of the eHuman Developmentf. At the end of the session, the expanding sphere of Development Economics will be introduced.

Reading Assignments:

(Required)

1) Gerald M. Meier, gThe Old Generation of Development Economists and the Newh, in G. M. Meier and J. E. Stiglitz eds., Frontiers of Development Economics: The Future in Perspective (2001).

2) Amartya Sen, gPoverty as Capability Deprivation,h Chapter 4 in Development as Freedom (1999).

Also visit the following HDR animation site and get the sense of interactions between income growth and the elements of human development:

3) HDR animation: Human Development and Income Growth (HDR2004)

http://hdr.undp.org/statistics/data/animation.cfm

(Recommended Further Readings)

On a pessimistic review of development economics around 1980:

4) Albert O. Hirschman, gThe Rise and Decline of Development Economicsh, Chapter 1 in Essays in Trespassing: Economics to Politics and Beyond (1981).

On the new and expanding roles of development economics into the 21st century:

5) Gerald M. Meier, gIntroduction: Ideas for Developmenth, in Frontiers of Development Economics: The Future in Perspective (2001).



Session II on April 26 (by Prof. Ezaki)

Poverty, Inequality, and Development

Poverty is discussed under the framework of gpoverty, inequality and developmenth in development economics, covering as special topics Pro-Poor Growth, FTA and Poverty, and Grameen Bank.

Reading Assignments:

(Required)

1) M. P. Todaro and S. C. Smith, Economic Development, 9th Edition, hChapter 5: Poverty, Inequality, and Developmenth, (2005).

April 1, 2006

(updated
on April 4)

(updated
on April 10)

First lecture of 'Development Economics' (EDP&M Core Couse) will meet on Tuesday, April 11 in the #3 Lecture Hall (10:30 a.m. - 12 noon)

In this first meeting of Development Economics, I will explain the design of the EDP&M course, and how the lectures of the course are inter-related.

April 11: Introdution to 'Development Economics'

1) Visit online course syllabus from the top page.

2) Download course discussion materials as we go.

For the month of April, you should read the required (all) and recommended (as much as possible) entires in the Stylized Facts & Evolving Principles in Economic Development secion of reading list in our online course syllabus.

(Notice)

*Majority of reading materials should be available in the designated section (Prof. Otsubo's corner) in the GSID library.

*No prerequistes for this course. This couse accomodates non-economists as well as semi- to full-economists.

*Students in Economic Development Policy & Management Program should take Development Microeconomics, Development Macroeconomics, and Development Statistics concurrently.

See you all in the class!

Prof. Otsubo