Bulletin Board
Development Economics

"Toward New Political Economy of Development"

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

1st Semester, 2015-2016

As the core discipline subject of the DIDfs 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 gdevelopmenth 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

July 3, 2015 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 14.

Development Economics 2015 Course Evaluation Sheet (English)
Development Economics 2015 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

July 3, 2015 FINAL EXAM !!

FINAL EXAM Q-Sheet will be distributed in the last class meeting of the semester on July 14.

In order foe me to give you entra incentive to fill the Course Evaluation, I will hand out Exam Q-Sheet in return to your anonymous Class Evaluation Sheet. This is my Game Theoretic behavior. How do you respond?

April 27, 2015 Self Study; Japanese Development Experience & Japnase Market System(s)

As we discussed in the lecture, a PowerPointNote is available in order for you to review/study the essense/elements of Japanese development experience and Japanese market systems. This document is also highly relevant for you in taking the 2nd-semeter lecture JADE (Japanese Development Experience), a reuired course to be offered in the second semester.

You should download and read the following note by yourselves. There will be one question related to this document in your final take-home exam.
Post-war Development of the Japanese Economy (Notes for EDP&M Students)


June 22, 2015

--Market Experiments for you to feel the forces of markets, for you to feel the limitations of market-oriented development strategy....

-- Part I: Forces of the Markets?
-- (Part II: Can we supply Puclic Goods? Can we cooperate for development? -- Just Presentations, this year)

Starting on June 30, 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 June 30 and July 7 lectures, classes will be stretched to 12:30pm so that we can finish experiments in suitable blocks. Prepare for quick lunches.

Bring a caluculator with you to these market experiment sessions!!

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 newr editions).
Read Chapter 7: The Public Sector, (OR Read the chapter on Public Sector in your textbook on Microeconomics.)

*Joseph E. Stiglitz, Economics of the Public Sector, 3rd ed., W.W. Norton & Co., 2000. (OR any newer editions.)
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.

(You can take a look at any related chapters in your textbook(s).)

For those who are interested in Experimental Economics, refer to readings in the On-line Course Syllabus.

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

**Economic Development, 12th (or 11th) ed.,
Chapter 11: Development Policymaking and the Roles of Market, State, and Civil Society.


**Economics of Development, 7th (or 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.
*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 uۊJoϊwv]

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

May 26, 2015 Part II: Learning Key Principles of Development Economics
-- Growth Theories & Structural Models

Starting in the first week of June, 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.

Textbook chapters for the lectures in this Part II are the followings. Also refer to the on-line syllabus for the additional required and recommended readings.

We will follow Prof. Otsubo's not-so-beautiful lecture notes in this Part II. (To be distributed in the Class on June 2.)

Fisrt Lecture on Growth Theories and Models:
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. [To be discussed in the class.]

**Economic Development, 12th (or 11th) ed., Chapter 3.

Second Lecture on Growth Theories and Models:
Neo-Classical Growth Model

**Economic Development, 12th (or 11th) ed., Chapter 3.

Third Lecture on Growth Theories and Models:
Endogenous Growth Model + Two-Sector Model (+Rural-Urban Migration Model)

**Economic Development, 12th (or 11th) ed., Chapter 4.

**Economic Development, 12th (or 11th) ed.,Chapter 7.
'Migration and Development' (**) and 'Toward an Economic Therory of Rural-Urban Migration' (**)) for the Migration Model. (*) for other sections.


April 27, 2015

Part 1: Introduction to Development Economics

-- Stylized Facts & Evolving Principles in Economic Development

-- Open & Closed Questions, and Emerging Issues into the 21st Century

-- MDGs to Post-MDGs: In Search of a New Development Paradigm

-- Measurements and Determinants of Poverty

-- Poverty-Growth-Inequality Triangle

-- Making Human Beings More Productive: The Essense of "Development"

-- Messages to New Learners - Future Development Economists/Development Practitioners


Also read two of my papers on P-G-I Triangle under Globalization (2nd semester course materials) in the

Poverty-Growth-Inequality under Globalization: Empirical Stocktaking subsection.

Reading Assignments: For the Part 1 of 'Development Economics,' you are supposed to work on the required readings (**) in the following sections of the Reading List contained in our on-line course syllabus. Once you finish these required readings (**), go onto the recommended selections (*).

-- Development Economics in International Development Studies

-- Poverty: How do you define it?

-- Stylized Facts & Evolving Principles in Economic Development



Reading Textbook Chapters by Yourselves:
You should read designated sections of the Textbooks by yourselves. Upon this basic preparation on your part, I will present/discuss things that deepen your understandings and the things/issues that cannot be taught in the standard textbooks. For Part I of the lecture, read **ED Chaptgers 1,2, 5, and **EOD Chapter 1.


Useful Sites on the Internet: As it is shown in the on-line syllabus, you are also requested to visit internaet websites in sections 1 through 5.

Make the Most of the Downloadable Presentation Files: Presentation materials to be used in the class are also downloadable from the relevant sections of the Reading List. It is a very good idea for you to go through them by yourselves, print and bring them with you to the classes so that you can leave notes on them as I make (brain-storming) presenations.

By the way, if you wish to review the history of the global economic system, refer to the following handouts. For the period up to the WWII...

Global Economic System 1

For the evolution after the WWII, refer to the following documens. Doccument #3 contains links with the evolution of development thought.

Global Economic System 2
Global Economic System 3

Most recent updates are available in Chapter 1 of the I2ID Book. For the post-WWII history, the recet updates are available in Chapter 30 of Globalization and Development Volume III. ( I will introduce electronic sources of these chapters in the first class meeting.

**Part I, I2ID Book I2ID Book Homepage (I2ID Students Only)

......... **Introduction ............ **Chapter 1 Maintext .... Figures ..... Tables

**Chapter 1, Globalization and Development Volume I (DO NOT circulate.)

**Chapter 30, Globalization and Development, Volume III (DO NOT circulate.)

The First Set of Brain-storming Presentatios

**I2ID 2012 Power Point Presentation File: Evolution of Development Paradigm and Economic Development

**AED 2013 Keynote Speech: New Development Challegnes in the 21st Century



*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.


April, 2015

First lecture of 'Development Economics' (EDP&M Core Course) will meet on Tuesday, April 28 in the #3 Lecture Hall (10:30 a.m. - 12 noon).

See you all in the class on April 28! Prof. Otsubo