Development Policy

Lecture 1: Patterns of Development

Chau Van Thanh

Required Readings:      

1. Perkins et al. 2006. Chapter 1.

Suggested Readings:    

1. Michael P. Todaro and  Stephen C. Smith, Economic Development, Chapter 1: Economics, Institutions, and Development: A Global Perspective  (10^th Edition), London: Pearson Education, 2009. 

Lecture 2: Measuring Economic Growth and Development

Chau Van Thanh

Required Readings:      

1. Perkins et al. 2006. Chapter 2.

Suggested Readings:    

1. Human Development Report 2010, The Real Wealth of Nations: Pathways to Human Development. 20^th Anniversary Edition. Available online in English at http://hdr.undp.org/en/. A Vietnamese language summary is available at http://hdr.undp.org/en/

Lecture 3: Geography and Development

Jonathan Pincus

Required Readings:      

1. Transcript of the program “Guns Germs and Steel,” at least through Episode 1. You can download and watch the full series from the FETP server (but it is in English).

Suggested Readings:

1. Diamond, Jared (1999) Guns, Germs and Steel: The Fates of Human Societies, New York: W.W. Norton and Company, especially the “Prologue”.  

2. Sachs, Jeffrey D. (2003) “Institutions Matter, But Not for Everything,” Finance and Development, June. 

Lecture 4: Development and Inclusive Institutions

Jonathan Pincus

Required Readings:      

1. Acemoglu, Daron and James A. Robinson (2012) “Why Nations Fail,” Milken Institute Review, Third Quarter.

Suggested Readings:

1. Khan, Mushtaq (2007) “Governance, Economic Growth and Development Since the 1960s,”

2. United Nations DESA Working Paper No. 54, http://eprints.soas.ac.uk

Lecture 5: The Lewis Model

Jonathan Pincus

Required Readings:      

1. Perkins, et al. 2006, Chapter 4, especially the section “Two-Sector Models.”

Suggested Readings:

1. Knight, John (2007) “China, South Africa and the Lewis model, Research Paper,” UNU-WIDER Research Paper 82,http://hdl.handle.net/10419/63386. 

2. Lewis, W. Arthur (1954) “Economic Development with Unlimited Supplies of Labor,” The Manchester School, 22:2, 139-191, https://webspace.utexas

3. Foster, James and Miguel Szekely (2008) “Is Income Growth Good for the Poor? Tracking Low Incomes Using General Means,” International Economic Review, 49:4, p. 1143-1172.

Lecture 6: Manufacturing as the Engine of Growth

Jonathan Pincus

Required Readings:      

1. Perkins, et al. 2006, Chapter 18.

Suggested Readings:

1. Dasgupta, Sukti and Ajit Singh (2006) “Manufacturing, Services and Premature Deindustrialization in Developing Countries,” UNU WIDER Research Paper NO. 49, May.

2. Fagerberg, Jan, Martin Srholec and Mark Knell (2007) “The Competitiveness of Nations: Why Some Countries Prosper While Others Fall Behind,” World Development, 35:10, p. 1595-1620.

Lecture 7: The Global Business Revolution

Jonathan Pincus

Required Readings:

1. Peter Nolan, Jin Zhang and Chunhang Liu (2008) “The Global Business Revolution, the Cascade Effect, and the Challenge for Firms from Developing Countries,” Cambridge Journal of Economics, 32, p. 29-47.

Suggested Readings:

1. Florida, Richard (2005) “The World is Spiky,” The Atlantic, October.

2. Friedman, Thomas (2005) The World Is Flat: A Brief History of the Twenty-First Century, New York: Picador.

Lecture 8: Institutions and Policies for Industrialization

Jonathan Pincus

Required Readings:      

1. Cimoli, Mario, Giovanni Dosi, Richard Nelson and Joseph E. Stiglize (2009) “Institutions and Policies Shaping Industrial Development: An Introductory Note,” in Mario Cimoli, Giovanni Dosi and Joseph E. Stigliz, eds., Industrial Policy and Development: The Political Economy of Capabilities Accumulation, Oxford University Press.

Suggested Readings:

1. Shahid Yusuf and Kaoru Nabeshima (2009) Tiger Economies Under Threat: A Comparative Analysis of Malaysia’s Industrial Prospects and Policy Options, World Bank, especially Chapters 1 and 7.

2. Daniel Lederman and William F. Maloney (2012) Does What You Export Matter? In Search of Empirical Guidance for Industrial Policies, World Bank.

Review

Lecture 9: Is growth good for the poor? 

Jonathan Pincus 

Required Readings: 

 1. Wuyts, Marc (2011) “Growth, Employment and the Productivity-Wage Gap: Revisiting the Growth-Poverty Nexus,” Development and Change, 42:1, 437-447.

Suggested Readings: 

 1. Dollar, David and Aart Kraay (2002) “Growth IS Good for the Poor,”http://www-wds.worldbank.org

2. Foster, James and Miguel Szekely (2008) “Is Income Growth Good for the Poor? Tracking Low Incomes Using General Means,” International Economic Review, 49:4, p. 1143-1172.

Lecture 10: Escaping Poverty 

Jonathan Pincus

Required Readings: 

 1. Krishna, Anirudh (2004) “Escaping Poverty and Becoming Poor: Who Gains, Who Loses and Why?” World Development, 32:1, p. 121-136.

Suggested Readings: 

1. Cecchini, Simone and Andras Uthoff (2008) “Poverty and Employment in Latin America, 1990-2005,” CEPAL Review, http://papers.ssrn.com

Lecture 11: Growth and Distribution

Jonathan Pincus

Required Readings:

1. Bowman, Kirk (1997) “Should the Kuznets Curve Be Relied on to Produce Equalizing Growth? Evidence from Post-1950 Development,” World Development, 25:1, pp. 127-143.

Suggested Readings: 

1. Miguel Szekely and Marianne Hilgert (1999) “What’s Behind the Inequality We Measure: An Investigation Using Latin American Data,” Inter-American Development Bank, Research Department Working Paper No. 409, (December), http://www.iadb.org/

Lecture 12: Does Inequality Matter for Development?

Jonathan Pincus

Required Readings:      

1. Wade, Robert (2011) “Global Trends in Income Inequality: What is Happening and Should We Worry? Challenge, September-October, p. 54-75.

Suggested Readings: 

1. Birdsall, Nancy (2010) “The (Indispensible) Middle Class in Developing Countries,” in Ravi Kanbur and Michael Spence, eds., Equity and Growth in a Globalizing World, World Bank.

2. Asian Development Bank (2012) Asian Development Outlook: Confronting Rising Inequality in Asia,http://www.adb.org/. Chapter 2.

Lecture 13: Education and Development
 

Jonathan Pincus

Required Readings: 

1. Abhijit Banerjee and Esther Duflo (2011),  Poor Economics, A Radical Rethinking of the Way to Fight Global Poverty,  Public Affairs.  Chapter 4: “Top of the Class.” 

Suggested Readings: 

 1. Richard Wilkinson and Kate Pickett (2010), “The Spirit Level, Why Equality is Better for Everyone,” Chapter 8, “Education Performance,” Penguin Books 

2. Paul Glewwe and Michael Kremer (2006), “Schools, Teachers, and Education Outcomes in Developing Countries,” http://www.hks.harvard.edu

Lecture 14: Health Policies

Jonathan Pincus 

Required Readings: 

 1. Abhijit Banerjee and Esther Duflo (2011),  Poor Economics, A Radical Rethinking of the Way to Fight Global Poverty,  Public Affairs.  Chapter 3: “Low-hanging fruit for better (global) health.” 

Suggested Readings: 

 1. Eddy van Doorslaer, et al. (2006) “Effect of Payments for Health Care on Poverty Estimates in 11 Countries in Asia: An Analysis of Household Survey Data, Lancet, 368, 1357-64. 

2. Hsiao et al. (2007), “Social Health Insurance for Developing Nations,” WBI Development Studies, The World Bank, Washington, D.C. http://harvardschoolofpublichealth.com/

Lecture 15: Role of Agriculture in Economic Development 

Tran Tien Khai

Required Readings: 

1. Bruce F. Johnston and John W. Mellor (1961) “The Role of Agriculture in Economic Development,” American Economic Review, 51:4, p. 566-593. 

Suggested Readings: 

1. Massoud Karshenas (2001) “Agriculture and Economic Development in Sub-Saharan Africa and Asia,” Cambridge Journal of Economics, 25, 315-342.

Lecture 16: Role of the State in Rural Development 

 Tran Tien Khai 

Required Readings: 

 1. Timmer, Peter C (1999) “The Role of the State in Agricultural Development,” in C. Peter Timmer (ed.). Agriculture and the State. Ithaca, NY: Cornell University Press. 

Suggested Readings: 

1. Colin MacAndrews, Alex Brillantes, and Ammar Siamwalla (2001) “Devolution and Decentralization” in Ammar Siamwalla (ed.), The Evolving Roles of the State, Private, and Local Actors in Rural Asia, Study of Rural Asia: Volume 5, Oxford University Press. 

2. Dorward, Andrew, Jonathann Kydd, Jamie Morrision and Ian Urey (2004) “A Policy Agenda for Pro – Poor Agricultural Growth.” World Development, 32:1, 73 – 89.

Lecture 17: Land Tenure and Rural Development

Tran Tien Khai 

Required Readings: 

 1. Deininger, Klaus (2003) “Executive Summary.” In Klaus Deininger (ed.). Land Policies for Growth and Poverty Reduction, World Bank.

Suggested Readings: 

 1. Quan, Julian (1998) “Land Tenure and Sustainable Rural Livelihoods,” in Diana Carney, ed., Sustainable Rural Livelihoods: What Contribution Can We Make? UK: Department for International Development Press. 

2. Feder, Gershon and David Feeny (1991) “Land Tenure and Property Rights: Theory and Implications for Development Policy,” The World Bank Economic Review, 5:1, 135 – 153. 

3. Feder, Gershon and Akihiko Nishio (1999) “The Benefits of Land Registration and Titling: Economic and Social Perspectives,” Land Use Policy, 15:1, 25-43. 

4. Hue Le (2008) “Economic Reforms and Mangrove Forests in Central Vietnam,” Society & Natural Resources, 21:2, 106-119. 

5. Quy-Toan Do and Lakshmi Iyer (2008) “Land Titling and Rural Transition in Vietnam,” Economic Development and Cultural Change, 56:3, 531-579.

Tran Tien Khai

Required Readings:

 1. Markets4Poor (2008) “Để chuỗi giá trị hiệu quả hơn cho người nghèo: Sổ tay thực hành phân tích chuỗi giá trị,” http://www.markets4poor.org/

Suggested Readings: 

 1. Raphael Kaplinsky and Mike Morris (2001) “A Handbook for Value Chain Research,” http://www.inti.gob.ar

2. GTZ ValueLinks Manual: The Methodology of Value Chain Promotion, http://www.value-links.de/

Lecture 19: Sustainable Development

Jonathan Pincus

Required Readings:

1. Perkins et al. 2006. Chapter 20

Suggested Readings:

1. Howarth, Richard B. (2007) “Towards an operational sustainability criterion,” Ecological Economics, 63, pp. 656–663.

 2. View Scientific American’s interactive web article “How Much is Left? The Limits of Earth’s Resources, http://www.scientificamerican.com/

Lecture 20: Natural Resources: Blessing or Curse?

Jonathan Pincus

Required Readings:

1. Wright, Gavin and Jesse Czelusta (2004) “The Myth of the Resource Curse,” Challenge, 47:2, 6-38.                    

Suggested Readings:

1. Van der Ploeg, Frederick (2011) “Natural Resources: Curse or Blessing? Journal of Economic Literature, XLIX(2): 366-420.

2. Andrew Williams (2011) “Shining a Light on the Resource Curse: An Emprical Analysis of the Relationship Between Natural Resources, Transparency and Economic Growth,” World Development, 39:4, 490-505.

Lecture 21: Trade, Growth and Poverty Reduction

Chau Van Thanh

Required Readings:      

1. Perkins et al. 2006. Chapter 19.

Suggested Readings:    

1. Daniel W. Drezner (2006), “The Race to the Bottom Hypothesis – An Empirical and Theoretical Review”.

2. Michael P. Todaro and  Stephen C. Smith, Economic Development, Chapter 12: International Trade Theory and Development Strategy (10^th Edition), London: Pearson Education, 2009.

Lecture 22: Policies Supporting Outward Orientation

Chau Van Thanh

Required Readings:      

1. Perkins et al. 2006. Chapter 19.

Suggested Readings:    

1. John Weiss (2005), “Export Growth and Industrial Policy:

2. Lessons from the East Asian Miracle experience”, ADB Institute Discussion Paper No. 26.

3. Michael P. Todaro and  Stephen C. Smith, Economic Development, Chapter 12: International Trade Theory and Development Strategy (10^th Edition), London: Pearson Education, 2009.

4. David Dapice (2009), Trade in the Real World, What Policies Make Sense for a Developing Economy (lecture notes).

Lecture 23: Equilibrium in a Small Open Economy: EB-IB Model

Chau Van Thanh

Required Readings:

1. Perkins et al. 2006. Chapters 19 & 21.

Suggested Readings:

1. Michael P. Todaro and Stephen C. Smith, Economic Development, Chapter 13: Balance of Payments, Developing-Country Debt, and the Macroeconomic Stabilization Controversy (10th Edition), London: Pearson Education, 2009.

2. Nicholas D. Kristof (2006) "Aid: Can it Work?" New York Review of Books, October 5, http://www.nybooks.com/

Lecture 24: Stabilization Policies

Chau Van Thanh

Required Readings:

1. Jeffrey Frankel (2011), How Can Commodity Exporters Make Fiscal and Monetary Policy Less Procyclical?, Natural Resources, Finance and Development, International Monetary Fund.

2. W. Max Corden (2012), The Dutch Disease in Australia: Policy Options for a Three-Speed Economy, Melbourne Institute Working Paper Series,Working Paper No. 5/12.