Bulletin Board
for
Development Economics


"Toward New Political Economy of Development"


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

1st Semester, 2008-2009


As the core discipline subject of the DID’s 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 “development” 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
June 30 Course Evaluation Sheets !!

You (either you are registered or auditting students) will be requested to fill one of the following course evaluation sheets and submit them in the lecture on July 15 or July 22.

Development Economics 2008 Course Evaluation Sheet (English)
Development Economics 2008 Course Evaluation Sheet (Japanese)

These will be used for me to improve the contents of this course for future students. Your kind inputs will be most highly appreciated.

Thank you in advance.

Instructor: Prof. Shigeru T. Otsubo

June 30 Final Exam

Final Exam for Development Economics 2008 will be a take-home open-book exam. I will give you exam sheets and explain grading policies in July 15 lecture.

July 16

Market Experiments

-- Part I: Forces of the Markets? Presentation Files for Your Reference

Taka on Bureaucrats w/ Perfect Information
Eko on Bureaucrats w/o Perfect Information
Said (from 2007 class) on Central Planning
Oliver (from 2003 class) on Central Planning

Let me thank Taka, Eko, and Monika for their presentations in my class.

On July 23 (Last Lecture)
-- Part II: Can we supply Puclic Goods? Can we cooperate for development?

Make sure that you bring calculator and course evaluation with you to the class!!

June 30

Market Experiments

-- Part I: Forces of the Markets?
-- Part II: Can we supply Puclic Goods? Can we cooperate for development?

Starting on July 1, we will conduct market experiments so that you can feel/understand the market forces for us to discuss the key isseus of markets vs. goverrment controls/coordination for development.

On July 1, 8, 15 lectures, classes may strech over 12 noon so that we can finish experiments in suitable blocks. Prepare for quick lunches.

I will post the results from our experiments in this BB. Evaluate the results by yourselves before you come to the next session.

Reading Requirements

Market Experiments: The Feel of Market Forces & The Roles of Governments

**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.)

*Joseph E. Stiglitz, Economics of the Public Sector, 3rd ed., W.W. Norton & Co., 2000.
Read Chapter 1: The Public Sector in a Mixed Economy, and
Skim through Chapter 2: The Public Sector in the United States .
Read Chapter 3: Market Efficiency, Chapter 4: Market Failures, and Chapter 6: Public Goods.

For those who are interested in Experimental Economics:
(A)Daniel Friedman and Shyam Sunder, Experimental Methods: A Primer for Economists, Cambridge University Press, 1994.
(A)川越、内木、森、秋永 訳、「実験経済学の原理と方法」、同文館、1999)




Market vs. Government Control in Economic Development: Building Instituions for Development Coordination

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

OR

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

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

*Yoichiro Ishihara, "Economic Governance and Economic Performacne in Developing Countrires," Forum of International Development Studies, Vol. 19 (Oct, 2001)
Excertpts will be distuributed in the class.
Download and read the full paper!

*Leading Issues in Economic Development, 8th ed., Chapter IX.
OR
*Leading Issues in Economic Development, 6th ed.
Read Chapters X: Markets, Government, and Policy, VII.B: Promoting Industrialization, and VII.D: Privatization.
[For the 6th ed., Japanese Version is available as 「国際開発経済学入門」]

*World Bank, World Development Report 2002Builidng Instituions for Markets, 2002.


May 17, 2008

(updated on June 16)

Near-Term Class Schedule and Reading Requirements

Starting on May 27, 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.

June 3, June 10 Lectures:
Stages of Development, Balanced vs. Unbalanced Growth Models, Dependency Theory
Basic Growth Model + Harrod-Domar Growth Model

**Robert J. Barro, Determinants of Economic Growth: A Cross-Country Empirical Study, MIT Press, 1997.
Read Chapter 1: Economic Growth and Convergence.


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


June 17 Lecture:
HD Growth Model, Neo-Classical Growth Model

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


June 24 Lecture:
Endogenous Growth Model + Two-Sector 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.,

Chapter 7: Urbanization and Rural-Urban Migration (remaining sections), AND

Chapter 9: Agricultural Transformation and Rural Development.

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


May 12, 2008

May 17 Lecture

Development and Equity

***Prof. Otsubo's PowerPoint Presentations & Handouts:
3) Poverty-Growth-Inequality Triangle

Eternal Triangle of Poverty-Growth-Inequality

For those who can read Japanese documents:
**Shigeru Otsubo, "The Eternal Traiangle of Growth, Inequality, and Poverty Reduction," Forum of International Development Studies, No. 36 (March 2008), pp. 21-44. [DP version}

***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.

By the way, as to the timing of the Industrial Revolution, refer to the following document. 1730s (full-fledged 1760-) in UK, 1820s in the US...

Global Economic System 1

If you are also interested in the evolution after the WWII, refer to the following documens.

Global Economic System 2
Global Economic System 3

April 17, 2008

Join me in this year's Overseas Field Work! I will take you to Chiang Mai Province, Thailand.

Hi ! Students of Development Economics Lecture Course !
(Yes, that's me, the OFW2008 King on my Thai vehicle.)

April 4, 2008
(Updated on
April 14, 2008)

First lecture of 'Development Economics' (EDP&M Core Course) will meet on Tuesday, April 15 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.

Visit EDP&M homepage:

(English)
(Japanese)



Then, I will explain the purpose/structure of & infrastructure for 'Development Economics' .



April 15: Introduction to 'Development Economics'

1) Visit online course syllabus from the top page (to be updated by April 15).

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.

April 15 & April 22:
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 ‘Development’ should be discussed. Benefits and limits of Income Growth will be revisited in the context of the ‘Poverty as Capability Deprivation’, and of the ‘Human Development’. At the end of the session, the expanding sphere of Development Economics will be introduced.

Reading Assignments:
(from Stylized Facts & Evolving Principles in Economic Development)

Evolution of Development Thought

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

Evolution of Development Thought
Evolution of Development Thought (Summary)

Evolution of Socio-Economic System (Summary)

Evolution of a Development Paradigm (Simplified)

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

***Frontiers of Development Economics:
Read (**)“Introduction: Ideas for Development”and (***)"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 “Introduction: 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.


Stylized Facts of Economic Development
+ Open and Settled Questions

***HDR animation: Human Development and Income Growth (HDR2004)
Human development and income growth 2004

***Frontiers of Development Economics:
“Development Issues: Settled and Open” 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.

Development and Equity

***Prof. Otsubo's PowerPoint Presentations & Handouts:
3) Poverty-Growth-Inequality Triangle

Eternal Triangle of Poverty-Growth-Inequality

For those who can read Japanese documents:
**Shigeru Otsubo, "The Eternal Traiangle of Growth, Inequality, and Poverty Reduction," Forum of International Development Studies, No. 36 (March 2008), pp. 21-44. [DP version}

***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.

Development with De-Population / Aging Population

***Prof. Otsubo's PowerPoint Presentations & Handouts:
4) Development with De-Population /Aging Population

Development with De-Population / Aging Population


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.



(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