Bulletin Board
for
Development Economics


"Toward New Political Economy of Development"


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

1st Semester, 2007-2008


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
July 17 Encore Lecture on Japan's Development Experience on July 24

In response to your passionate call for an encore lecture (??), I will conduct one more lecture on July 24.

Date and Time: July 24 (Tuesday), 10:30am - 12 noon
Location: No.1 Conference Hall (8th floor, GSID Bldg.)
!!!

We will review the post-war Japanese development experience and discuss where the three key elements of development, i.e. i) policy, ii) institutions, and iii) technology, played key roles in Japane's sucess in recovery and stagnation in post-catch-up era. Japan's current efforts to regain economic/social dynamics will also be reviewed in accordance with evolutions/developments in these three key elements. Class will consit of 70-minute presentation by Prof. Otsubo and a 20-minute Q&A sesssion after the presentation.


Again, you should download the following powerpoint note, read it and bring it with you to the class.

***Shigeru Otsubo and Akira Furukawa, Post-war Development of the Japanese Economy---Development, Japanese/Asian Style---, PowerPointNote, 2007.

You can/should invite your friends who are interested in Japan's (Economic) Development Experience to this last lecture. I will also welcome auditors for this last lecture.

Results from Our Market Experiment Part II

Download and attach it to the Market Experiments Part II HOs.

Results of Market Experiments Part II

Class Evaluation Sheets

Those who have not yet submitted your class evaluation sheet, you should downolad the evaluation sheet, fill it and bring it to the next class (or submit it in my mailbox on the 1st floor).

Development Economics 2007 Course Evaluation Sheet (English version)

Development Economics 2007 Course Evaluation Sheet (Japanese version)

July 11 July 17 Lecture

As we will have to continue our Market Experiments Part II in the first half of July 17 lecture, time that can be spent on the Japanese development experience will be limited. You should read

***Shigeru Otsubo and Akira Furukawa, Post-war Development of the Japanese Economy---Development, Japanese/Asian Style---, PowerPointNote, 2007.

before you come to the class. Class will start at 10:30 am, and will end at around 12:30 pm.

Final Exam

I have decided to give you a Take-Home Final Exam Questions on July 17. (Where is that democracy?)
The due date for this take-home, open-book exam will be Friday July 27 (5 pm). That is, you will have a full 10-day period to prepare answers.

Course Evaluation

Course evaluation is now mandatory. Your comments will be solely used in order for me to improve the organization/structure and methodologies to be used in the future Development Economics lectures. Please download the following evaluation sheets (choose English version or Japanese version), fill out your responses and comments and bring them to the class on July 17. I will give you the Final question sheet when you turn in your course evaluation sheet. (Give and take!) Make sure to bring the sheets completed beforehand as we will not have any time to fill them out during the last class meeting of this semester.

Development Economics 2007 Course Evaluation Sheet (English version)

Development Economics 2007 Course Evaluation Sheet (Japanese version)

I hope I will see you all on time on July 17.

July 9 Notice !!

Bring your calculator to the class meeting on July 10.
We will conduct Market Experiments Part II: Public Goods.

July 17 Lecture
Japanese and Asian Development Experiences & Course Wrap-Up

Require Readings for This Section
Market vs. Government Control in Economic Development: Building Institutions for Development Coordination
East Asian Growth Model--Miracle or Myth?----Japan's & Asia's Development Experiences--Beyond the Asian Financial Crisis

***Shigeru Otsubo and Akira Furukawa, Post-war Development of the Japanese Economy---Development, Japanese/Asian Style---, PowerPointNote, 2007.

**World Bank, The East Asian Miracle: Economic Growth and Public Policy, Oxford U. Press, 1993.

(If you have not yet read the East Asian Miracle, read the Overview*** and skim through sections that you are interested**.)

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

July 24 Final Exam !!

June 28 Notice !!

As I started to process the results from our Market Experiments Part I, I came to realize that there were at least two rule-violators on the sellers' side and one rule-violator on the buyers' side. Two sellers sold tickets below there procurement prices. One buyer purchased a ticket at a price higher than one's price limit. As we are not experimenting markets with loans or with fixed-cost-recovery options, the market does not function with rule violators either in reality or in laboratory simulations.

I should have paid more attention to those violators in the experiments. I pointed out violators only in the first trial, not in the following exercises. That was my mistake. After all, as I said in the class, it takes sometime for everyone to lean the market system.

As such, I need to repeat a part of the Experiments Part I on July 3. Please be in the classroom at 10:30 am sharp and prepare yourself for an extension of 30 minutes (up to 12:30 pm.)

June 18 Near-Term Class Schedule and Reading Requirements

We are now behind the schedule. We will wrap up theory talks and go into the testing of Market Forces, roles of governments in development, and arguments pertaining to 'Governance'.

June 19 Lecture:
Endogenous Growth Model (Continued) + Two-sector Models
+ Neoclassical vs. Structuralist Models (Summary)

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

June 26 Lecture:
Market Experiments
Trading-Pit Auction Games, Central Planning vs. Efficiency-minded Bureaucrats
Provision of Public Goods, Voluntary Contribution Mechanism, etc.

July 3 Lecture:
Market Experiments: (Continued Sessions & Evaluation Sessions)

Require Readings for June 26 and July 3
Market Experiments: The Feel of Market Forces & The Roles of Governments
Market vs. Government Control in Economic Development: Building Institutions for Development Coordination

***Prof. Otsubo's Materials for Market Experiments (to be distributed in the class).

***Joseph E. Stiglitz, Principles of Micro-Econonmics, 2nd ed., W.W. Norton & Co., 1997 (Or any other edition).
Read Chapter 7: The Public Sector, (This short chapter will be distributed in the class.)

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

OR

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

OR

***Economics of Development, 6th ed.
Chapter 5: States and Markets.

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

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

July 10 Lecture:
States and Market in Development: What we have learnt from the experiments?
Governance -- New Institutional Economics
Japanese Development Experience

July 17 Lecture:
Japanese Development Experience
& Course Wrap-up & Introduction to Globalization and Development

Require Readings for July 10 and 17
Market vs. Government Control in Economic Development: Building Institutions for Development Coordination
East Asian Growth Model--Miracle or Myth?----Japan's & Asia's Development Experiences--Beyond the Asian Financial Crisis

***Shigeru Otsubo and Akira Furukawa, Post-war Development of the Japanese Economy---Development, Japanese/Asian Style---, PowerPointNote, 2007.

**World Bank, The East Asian Miracle: Economic Growth and Public Policy, Oxford U. Press, 1993.

(If you have not yet read the East Asian Miracle, skim through it, at least.)

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

July 24 Final Exam !!

May 14 Near-Term Class Schedule and Reading Requirements

Starting on May 22, we will deal with Growth Theories/Models. You are supposed to work on the required readings (**) in
Economic Growth Models and Theories: Growth Theories, Income Convergence?, Determinants of Growth, and Agriculture vs. Industry (Rural vs. Urban Sectors) section of the reading list by the end of the second week of June.

May 22 Lecture:
Basic Growth Model + Harrod-Domar Growth Model

***Economic Development, 9th ed., Chapter 3.


May 29 Lecture:
Neo-Classical Growth Model + Two-sector Model

***Economic Development, 9th ed., Chapter 3.


June 5 Lecture:
Endogenous Growth Model + Rural-Urban Migration Model

***Economic Development, 9th ed., Chapter 4.

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


For ** and * items, refer to the online course syllabus.

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

Students in Rural/Regional Development Development Program should also read:

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

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



May 11 For May 15 Lecture:

You should finish reading:

1) ***Frontiers of Development Economics:
gDevelopment Issues: Settled and Openh by Shahid Yusuf and Joseph E. Stiglitz,

and Miss Izumi Tagawa's presentation summary, and

2) short piece by Dr. Bruno (that I distributed)

by yourself and come to the next class with questions.

After Q&As on these materials we will proceed into the issues of:

Development and Equity

Bring the text book or a Xerox copy of chapter 5 with you to the next lecture. We will refer to Figures and Tables in Chapter 5 as we discuss Inequality issues.

***Economic Development, 9th ed., Chapter 5 (**).

Mr. Felippe Araujo will make a presentation on the key concepts/issues addressed in this chapter. We will have discussion after his presentation (assuming that you have already read the chapter).

April 23, 2007 There will be no lectures on May 1 (University Holiday). But make sure that you complete required readings during the upcoming golden week.
April 23, 2007

(updated)

Near-Term Class Schedule and Reading Requirements

You are supposed to finish required readings (**) in
Stylized Facts & Evolving Principles in Economic Development
section of the reading list by the second week of May (at the latest).

April 24 Lecture:
Evolution of Development Thought--A Wrap Up
+ Stylized Facts of Economic Development

***Prof. Otsubo's PowerPoint Presentations & Handouts:
1) The Evolution of Development Thought: An Economist's Overview,
2) Revolutions and the Evolution of Economic Systems.

***Economic Development, 9th ed., Chapters 1(**), 2 (**) .

**Frontiers of Development Economics:
Read (**)gIntroduction: Ideas for Developmenthand (**)"The Old Generation of Development Economists and the New" by Gerald M. Meier,

**World Bank, World Development Report 2000/2001\Attacking Poverty.
Read Chapters 1-2.

**Development as Freedom.
Read gIntroduction: Development as Freedom", Chapter 1: The Perspective of Freedom, and Chapter 4: Poverty as Capability Deprivation.

*(**)Albert O. Hirshman, "The Rise and Decline of Development Economics," Chapter 1 in Essays in Trespassing: Economics to Politics and Beyond (1981).
This paper is (**) for EDP&M major.




May 8 Lecture:

Stylized Facts of Economic Development (continued)
+ Open and Settled Questions

***Frontiers of Development Economics:
gDevelopment Issues: Settled and Openh by Shahid Yusuf and Joseph E. Stiglitz,

**World Bank, World Development Report 2000/2001\Attacking Poverty.
Read Chapters 1-2.

**The Elusive Quest for Growth.
Read Part I: Why Growth Matters, Chapter 1: To Help the Poor.

*(**)Aart Kraay and David Dollar, "Growth is good for the poor," Policy Research Working Paper No. 2587, The World Bank (2001).
[PDF file is here.] This paper is (**) for EDP&M major.

*Robert J. Barro, Determinants of Economic Growth: A Cross-Country Empirical Study, MIT Press, 1997.




May 15 Lecture:

Development and Equity

***Economic Development, 9th ed., Chapter 5 (**).

**World Bank, World Development Report 2000/2001\Attacking Poverty.
Read Chapter 3.

**World Bank, World Development Report 2006\Equity and Development.
Read Overview, Chapter 1: Introduction and Chapter 4: Equity and well-being.


Explore No.1 through No.5 of the designated site by the end of April.
Also vist No.24 (on-line tutor) and No.25 (virutal case study) of the designated site as we go in order for you to navigate and summarize issues that we deal with, and to see the relevance of them on the ground.

April 5, 2007 The two EDP&M sessions (April 18: Evolution of Development Economics; April 25: Global Warming and International Cooperation) 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 18 and 25 sessions in Introduction to International Development (I2ID).

I2ID 2007

Sessions by Economic Development Policy • Management Program

Session I on April 18 (by Prof. Otsubo)

The Review and Overview of Development Thoughts by Economists

Session II on April 25 (by Prof. Fujikawa)

Global Warming and International Cooperation


Session I on April 18 (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 25 (by Prof. Fujikawa)

Global Warming and International Cooperation

Wait for an annoucement from Prof. Fujikawa.

April 5, 2007

First lecture of 'Development Economics' (EDP&M Core Course) will meet on Tuesday, April 17 in the #3 Lecture Hall (10:30 a.m. - 12 noon).

We will not be able to meet on April 10 as Foreign Students should be attending an Orientation Meeting for FSs during 10 am. - 12 noon on that day.

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.

Visit EDP&M homepage:

(English)
(Japanese)

EDP&M will host April 18 and 25 sessions in Introduction to International Development (I2ID).


April 17: Introduction to 'Development Economics'

1) Visit online course syllabus from the top page (to be updated by April 10).

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) entries in the Stylized Facts & Evolving Principles in Economic Development section 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 prerequisites for this course. This course accommodates 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