ECON 354

Economic Development(CRN – 73111)

Syllabus

Dennis C. Plott

Saint Mary’s CollegeDepartment of Business Administration and Economics

www.dennisplott.com

Spring 2016

ECON 354 – Economic Development Syllabus – Spring 2016

Contents

1 Course Description and Objectives 21.1 Saint Mary’s College Course Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.2 Course Introduction, Objectives, and Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2 Responsibilities, Expectations, and Advice 32.1 Instructor’s Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2 Student’s Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2.2.1 Prerequisites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2.2 Academic Rigor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2.3 Advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

3 Course Materials 43.1 Books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.2 Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

3.2.1 Other Useful Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.3 Supplementary (Optional) Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

3.3.1 Books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.3.2 Periodicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.3.3 Blogs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.3.4 People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.3.5 Data & Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.3.6 Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.3.7 Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

4 Course Requirements and Grading 74.1 Graded Material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

4.1.1 Class Participation & Leading Discussion (20%) . . . . . . . . . . . . . . . . . . . . . . . 74.1.2 Exams (20%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74.1.3 Problem Sets (10%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74.1.4 Human Development Indicator (10%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74.1.5 Memos (10%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74.1.6 Country Report & Research Paper (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

4.2 Regrading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.3 Late Work and Extra Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.4 Basis for Final Grade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

5 Course Policies and Common Sense 85.1 Email . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85.2 Electronic Devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95.3 Food and Drinks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95.4 Punctuality, Attendance, and Talking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95.5 Academic Integrity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95.6 Course Flexibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95.7 Course Cancellation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105.8 Grade Dissemination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105.9 Recording of Lectures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105.10 Course Material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

6 Saint Mary’s College Policies and Relevant Information 106.1 Students with Disabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.2 Academic Calendar (Important Dates) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.3 Department of Business Administration and Economics . . . . . . . . . . . . . . . . . . . . . . 10

6.3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106.3.2 Student Learning Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

7 (Tentative) Schedule 11

8 Readings 12

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ECON 354 – Economic Development Syllabus – Spring 2016

Please, read and reference the syllabus. Its main purpose is to give you information about the course sothat you do not have to ask me during the semester. Please, do not be scared about the length of thesyllabus. I view this document as a contract between you and me. You should consider the syllabus to bethe ground rules. “I didn’t read the syllabus”, and the like, is not an acceptable excuse for missing anexam, assignment, or being unaware of a class/College policy, etc. Any registered student in the coursewill adhere to and abide by the syllabus without exception.

Instructor Dennis C. PlottInstructor Email dennis.plott@gmail.comInstructor Website www.dennisplott.comInstructor Office Location 361 Spes Unica HallInstructor Office Hours Tuesday (11:00 a.m.–3:00 p.m.) and by appointmentClass Location 339 Spes Unica HallClass Meeting: Days Monday and WednesdayClass Meeting: Time 11:00 a.m. – 12:15 p.m.Official Course Website https://bblearn.saintmarys.edu/

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ECON 354 – Economic Development Syllabus – Spring 2016

1 Course Description and Objectives

1.1 Saint Mary’s College Course Description

354 Economic Development (3 credits)Examination of the process of economic growth. Particular attention is given to the problems faced by developingnations and to the alternatives open to these countries. Prerequisites: ECON 251, 252.1

1.2 Course Introduction, Objectives, and Philosophy

Half of the world’s population subsists on less than $2 per day. Despite substantial improvements in recentyears, many people still remain uneducated, without access to adequate medical services, and without basicsanitation or clean water. The majority of the world’s population is still employed in subsistence agriculture orin informal entrepreneurial jobs without access to adequate financial services. What can be done to improvetheir lives? Welcome to development economics, a branch of economics dealing with low-income economies.

The aim of this course is to engage in the world of poverty, from the very basics of how to measure it to thechallenging question of how to eradicate it. Throughout the course, we will contrast different hypotheses abouthow poor households, firms, and governments make decisions and compare these predictions with the empiricalevidence. Why isn’t the whole world developed? Obviously, there are many reasons for the disparity in livingstandards between advanced and developing countries. Leading explanations for economic development, or thelack thereof, that will be discussed in class include population growth and demographic transition, nationalsavings and capital accumulation, foreign aid, human capital formation (i.e., health and education), income andgender inequality, the role of the government and its institutions, climate and natural resources, and internationaleconomic integration.

The course is meant to provide insight on the complexity of these issues and the significance of evidence fordesigning effective interventions. This course will acquaint you with new ideas and new ways of answering ageold questions about economic development. These are the very ideas that have enriched our understanding ofthe processes that ultimately engender economic development. The course has a broad reach and is relevant asan introduction to the subject for continuing students as well as to people who work in the worlds of policy andbusiness. The material covered in the course will build on previously studied tools and principles and applythem to this both extremely relevant and challenging topic. The goal of this course is not only to provide moreprecise ideas about the lives of the poor around the world, but also to provide basic levels of understanding ofwhy poverty persists and what tools can help alleviate it. By the end of this course I expect you to:

1. have a more comprehensive insight of poor people’s lives

2. better understand how economists do research.

3. understand the relevance of evidence

4. acknowledge that often there are no easy solutions

5. improve your communication and positive economic reasoning skills

6. understand and explain key economic development concepts such as the Human Development Index,demographic transition, economic growth models, measures of inequality such as the Lorenz curve andGini coefficients, governance and the choice of the economic system, the natural resource curse, foreigndirect investment, official development assistance, remittances, and private giving

7. analyze the efficacy and consequences of economic development policies such as import substitution andexport expansion.

8. define economic development and assess its pros and cons and its links to human welfare

9. create a basic human development indicator incorporating different aspects of human welfare and to applythat indicator to countries

10. understand the sources of economic development

11. understand the debate over and the roles of aid, NGOs, infrastructure, natural resources, institutions andgovernance, and trade in the process of development

1https://www.saintmarys.edu/files/saint-marys-bulletin-15-16.pdf

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12. explore different paths of development for emerging countries that could avoid some of the errors of thecurrent developed world, especially in the area of sustainability

13. be able to distinguish between economic success and the quality of human life.

14. critically read and discuss strengths and weaknesses of (introductory) academic papers

15. present results of an academic study and ask relevant questions

My approach is to meld economic theory and the best available empirical evidence so that you polish up theskills of critically assessing the use of data to test competing explanations and to inform sensible developmentstrategies or policies.

2 Responsibilities, Expectations, and Advice

2.1 Instructor’s Responsibilities

As the instructor, my responsibilities are to come to class prepared to teach; to organize and present thematerial in a manner that facilitates your learning; to respond to and encourage questions; to oversee grading ofassignments; to be available during office hours and for scheduled appointments; and to stimulate an enthusiasmfor economics and for learning.

2.2 Student’s Responsibilities

As a student, your responsibilities are to come to class prepared to learn and to participate in lectures; to completethe assigned readings before class (allowing time to re-read difficult material); to complete all assignments ontime; and to take all exams.

2.2.1 Prerequisites

The course prerequisites are Principles of Macroeconomics (ECON 251) and Principles of Microeconomics(ECON 252). Merely having completed the prerequisites while retaining absolutely none of the material will beinsufficient for you to succeed in this course. I will assume that you either have a basic understanding of thematerial or that you have the desire, willingness, and ability to do the necessary extra reading on your own tocatch-up. That said, there will be a healthy review of essential material in the early part of the course to helpget your bearings.

2.2.2 Academic Rigor

Mastering the material covered in this course requires a significant amount of work outside of class. Studentsshould expect to spend more time outside of class than in class. At the college level, average students areexpected to devote at least two hours of problem solving and study time outside of class for every hour that theyare in class in order to earn a C (i.e., satisfactory) grade. Do not expect to receive a satisfactory grade unlessyou are willing to make the necessary commitment. Also note that you will be graded on your productivity,competency, and proficiency, not your effort, nor your intentions, nor any factor other than your performance onassigned work (i.e., problem sets, exams, and assignments).

2.2.3 Advice

I know many of you work, have families, commute, take other courses, have social lives, watch Simpsonsmarathons, etc. However, experience has shown that economics is not a subject that you can put off until thelast minute. An economics course is similar to a math class in that much of the material is cumulative, witheach lesson depending on comprehension of the material that has come before.

Therefore, I urge you to attend class on a regular basis and actively participate. Experience has also shown thatstudents whose attendance is irregular usually do quite poorly. I urge you to keep up to date on the reading andassignments, to ask questions in class, and come see me during my office hours if you are having difficulty. I amhere to help you. While I realize that it is often unpleasant and sometimes even painful to deal with difficultmaterial, ignoring your difficulties is a guaranteed way to make your problems worse. Forming study groups isalso a good way to learn the material. Even if you are the best student in the group, you will still learn throughyour efforts to explain the material to others.2 If at any point during the semester you are having difficulty,

2Docendo discimus (“by teaching, we learn”) – Seneca the Younger

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ECON 354 – Economic Development Syllabus – Spring 2016

please come see me sooner rather than later. If you keep up with the material, you can do relatively well in thecourse. Falling behind is, however, the surest way to make this class a difficult and unpleasant experience.

Given the amount of reading and the breadth of the topics covered, many students will find this to be a challengingcourse. I will do his utmost to help you master the material, but you will be expected to contribute your best,sustained, and consistent effort in attending classes, studying, reading, solving problems, and consulting withme in office hours.

3 Course Materials

3.1 Books

Do not purchase any books until AFTER the first class meeting.

1. Michael P. Todaro and Stephen C. Smith, Economic Development, 12th Edition, 2014, Prentice Hall

This is the most recent version of the textbook and subsequently the most expensive. However, it isnot only acceptable, but recommended that you purchase the previous (i.e., 11th) edition publishedin 2012. The main content is more or less identical, but significantly less expensive.

2. Abhijit Banerjee and Esther Duflo, Poor Economics: A Radical Rethinking of the Way of Fighting GlobalPoverty, 2012

3. William Easterly, The Elusive Quest for Growth: Economists’ Adventures and Misadventures in theTropics, 2002

4. Paul Collier, The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done AboutIt, 2008

5. Jeffrey Sachs, The End of Poverty: Economic Possibilities for Our Time, 2006

6. Amartya Sen, Development as Freedom, 2000

7. Deirdre McCloskey, Economical Writing, 2nd Edition, 1999, Waveland

3.2 Software

1. Excel3

2. Tableau

3.2.1 Other Useful Software

Although not necessary for this class, it is highly recommended that you use an online storage service such as:

1. Dropbox

2. Google Drive

3. Box

3.3 Supplementary (Optional) Resources

3.3.1 Books

1. Daryl Collins, Jonathan Morduch, Stuart Rutherford, and Orlanda Ruthven, Portfolios of the Poor: Howthe World’s Poor Live on $2 a Day, 2010

2. Dean Karlan and Jacob Appel, More Than Good Intentions: Improving the Ways the World’s Poor Borrow,Save, Farm, Learn, and Stay Healthy, 2012

3. Angus Deaton, The Great Escape: Health, Wealth, and the Origins of Inequality, 2015

3Excel is Microsoft’s spreadsheet application and part of the Microsoft Office suite. There are a host a similar and free programsthat function in a similar manner. For example, LibreOffice – Calc

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4. William Easterly, The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So MuchIll and So Little Good, 2007

5. Daron Acemoglu and James Robinson, Why Nations Fail: The Origins of Power, Prosperity, and Poverty,2013

3.3.2 Periodicals

1. The Economist

· A British weekly English-language magazine focusing on international politics and business news andopinion.

2. Financial Times

· A British English-language international daily newspaper with a special emphasis on business andeconomic news internationally.

3. The Wall Street Journal

· An American English-language international daily newspaper with a special emphasis on businessand economic news.

4. Journal of Economic Perspectives (JEP)

· A quarterly journal published by the American Economic Association (AEA).

5. Federal Reserve Bank of St. Louis Review

· A quarterly research journal intended for an economically informed but broad readership – from theundergraduate student to the Ph.D.

6. Bank of England Quarterly Bulletin

· The Quarterly Bulletin explores topics on monetary and financial stability and includes regularcommentary on market developments.

3.3.3 Blogs

1. http://www.voxeu.org/

2. Chris Blattman’s Blog

3. World Bank’s Development Impact Blog

3.3.4 People

1. Paul Polak, Twitter: @OutofPoverty

2. William Easterly, Twitter: @bill easterly

3. Chris Blattman, Twitter: @cblatts

4. Jeffrey Sachs, Twitter: @JeffDSachs, Earth Institute

5. Dani Rodrik, Twitter: @rodrikdani

6. Michael Clemens, Twitter: @m clem

7. David Roodman, Twitter: @davidroodman

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3.3.5 Data & Reports

1. World Development Indicators

2. World Development Reports

3. Poor Economics Data

4. US Census Bureau’s American Community Survey

5. International Household Survey Network (household survey catalog)

6. Data Initiatives on Poverty

7. International Financial Statistics (IMF)

8. World Development Indicators (World Bank – now available free, online)

9. Global Development Finance (World Bank – now available free, online)

10. Geographic Distribution of Financial Flows (OECD)

11. World Labour Report (ILO)

12. The Economist (special surveys)

13. World Development Report (World Bank)

14. Industry and Development Report (UNIDO)

15. Human Development Report (UNDP)

16. Handbook of Trade and Development (UNCTAD)

17. World Economic Outlook (IMF)

18. Transition Report (EBRD)

19. Competitiveness Reports (World Economic Forum)

20. Transparency International

21. World Investment Report (UNCTAD)

3.3.6 Institutions

1. Abdul Latif Jameel Poverty Actional Lab (J-PAL), Twitter: @JPAL Global

2. Innovations for Poverty Action, Twitter: @poverty action

3. Center for Global Development, Twitter: @CGDev, Policy Blogs

4. USAID, (U.S. Aid Agency), Twitter: @USAID

5. Millenium Development Goals, Twitter: @WeCanEndPoverty

6. Bill & Melinda Gates Foundations, Twitter: @gatesfoundations

7. PRATHAM (NGO: Education, India), Twitter: @Pratham India

8. BRAC (NGO: Microfinance, Bangladesh), Twitter: @BRACWorld

9. Grameen Foundation (NGO: Microfinance, Bangladesh), Twitter: @GrameenFdn

3.3.7 Websites

1. Center for Global Development

2. WIDER

3. The Kaufmann Governance Post

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4 Course Requirements and Grading

4.1 Graded Material

4.1.1 Class Participation & Leading Discussion (20%)

Class discussion is a fundamental component of the course. Speaking and participating gives the opportunity toengage in active learning and structure arguments. Discussion should take place in a disciplined and respectfulenvironment. You are expected to read all the required readings before each class. Students will alternate inleading class discussions.

4.1.2 Exams (20%)

One midterm and a final exam will be given during the semester. All exams are closed book/notes. Exams mayinclude true/false/uncertain with explanation, graphing, short-answer (economic rationale), and problem solving(calculation) questions. There will not be any multiple-choice questions on exams. No exams are dropped orreplaced. No make-up exams will be given for any reason.

If you do not take the midterm, then the missed exam’s percentage will be added to the final exam’s weight.The final exam must be taken to receive credit in the course. If you are unable to take the final exam at itsscheduled time and place, do not take this class. The final exam is cumulative.

4.1.3 Problem Sets (10%)

There will be two problems sets; each worth five percent of your final grade. No problem sets are dropped orreplaced. The problem sets are composed of calculation, graphical, true/false/uncertain with explanation, andconceptual questions; thereby mimicking the exams to a large degree.

4.1.4 Human Development Indicator (10%)

To become familiar with the concept of economic development and what it constitutes in the real world, studentsin groups will design a Human Development Indicator along the lines of the one annually produced by theUnited Nations, or by many other organizations. Each group will decide on the components for its HumanDevelopment Indicator. This indicator must include at least five observable indicators (more may be used) forwhich data can be found for most countries. Students will decide and explain in their written reports:

• which indicators they have selected as the best reflection of economic development, and why

• how to weight those indicators in the final composite indicator

• rank a selection of countries using their Human Development Indicator

• compare/contrast other developments indicators with your specification

4.1.5 Memos (10%)

Two memos will be assigned. The memos will be relatively short, written pieces that will assess students’ abilityto apply knowledge of economic theory and interpretation of data to policy. They will require students toidentify and consult sources not necessarily provided on the reading list for background information and data.They will be graded on the accuracy of responses to specific parts of each assignment, clarity and correctness ofpositive economic reasoning, and on the quality of writing and presentation.

See “Tips on Writing a Policy Memo”

4.1.6 Country Report & Research Paper (30%)

The main assignment for this course will be the report on a developing country. Students will select a country,review the readings and specific published information on their country of choice, and then will use the indicatorsstudied during the course to

1. assess the degree of development that the country has achieved

2. evaluate how the different “traps” and tools studied in the course have helped or hindered the developmentprocess

3. determine what policies might be needed to ensure its future progress

A detailed supplemental document will be provided to guide you.

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4.2 Regrading

Graded material for which there is a regrade request must be done within one week after its return to you. Therequest for regrade must be done in writing and attached to the assignment/exam/problem set when submittingfor a regrade. The request must include a description of what the problem is and why you think the work shouldbe graded differently. In such cases, I will regrade the entire exam/problem set/assignment; i.e., not just whatyou identified. Your grade may increase, decrease, or remain unchanged.

4.3 Late Work and Extra Credit

Late work of any sort, in general, will not be accepted; e.g., due to interviews, sporting events, etc. The onlyexception would be a medical emergency with appropriate verifiable documentation. Bonus questions may beasked on exams. However, that said, there will be no extra credit given in this course for any reason; please donot ask.

4.4 Basis for Final Grade

AssessmentPercentage ofFinal Grade

Due Date(Tentative)

Class Participation & Leading Discussion 20% –Memo 1 5% Wednesday 3 February (Due by 12:15 p.m.)

Problem Set 1 5% Monday 22 February (Due by 12:15 p.m.)Midterm 10% Wednesday 2 March (11:00 a.m.–12:15 p.m.)Memo 2 5% Monday 21 March (Due by 12:15 p.m.)

Human Development Indicator 10% Monday 11 April (Due by 12:15 p.m.)Problem Set 2 5% Wednesday 20 April (Due by 12:15 p.m.)

Country Report & Research Paper 30% Wednesday 27 April (Due by 12:15 p.m.)Final Exam 10% Thursday 5 May (4:15 p.m.–6:15 p.m.)

Total 100%

Grading ScalePercentage (%)

LetterGrade

GPAValue

Meaning

95–100 A 4.00 Superior90–94 A− 3.6787–89 B+ 3.3384–86 B 3.00 Good80–83 B− 2.6777–79 C+ 2.3374–76 C 2.00 Satisfactory70–73 C− 1.6765–69 D+ 1.3360–64 D 1.00 Poor0–59 F 0.00 Failure

5 Course Policies and Common Sense4

Actions that have negative effects on others will NOT be tolerated.

5.1 Email

The best way to contact me outside of class and office hours is via email (dennis.plott@gmail.com). For anyemail correspondence, please, type “ECON 354” in the subject line. This is for your benefit. If you do not, thenyour email will likely not go to the proper mailbox and I may not see it. Also, an email to me is not a textmessage to one of your friends; please adhere to standard grammar, punctuation, spelling, etc. For questionsregarding the material, it is strongly recommended that you see me in person.

4“Common sense is not so common.” – Voltaire, A Pocket Philosophical Dictionary, 1764

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ECON 354 – Economic Development Syllabus – Spring 2016

5.2 Electronic Devices

Although not recommended, laptops and iPad type devices are permitted for note-taking and course relatedmaterial only. If I discover laptops (iPads, etc.) are being used for non-classroom activities, I will not allow themin the class. Non-classroom activities include, but are not limited to, checking your Facebook page, emailing,looking at Reddit, online banking, bidding on cigars, playing Tetris, looking at Brad Paisley’s website, andwatching anime. No, I did not simply list asinine examples, but have actually witnessed all of these activitiesduring a class!

Calculators may be permitted on some exams. However, only basic calculators up to scientific calculators. Allthat is “needed” are basic addition, subtraction, multiplication, division, square root functions, and the like.Fancy-pants gadgets such as graphing calculators, cell phones, iPads, or anything that can store or referenceinformation are absolutely not allowed at any time during an exam.

Cell phones, noise makers, and anything that may disturb the class in any way are to be turned off or silencedand put away. If these devices become a problem in class there will be a draconian policy implemented; anystudent’s noise maker that goes off in class automatically loses one-percentage point of their final grade foreach infraction. If you are caught texting in class, then the entire class will be given a quiz on the most recentmaterial covered. Wearing or playing with earbuds, headphones, earphones, etc. during class is inappropriatewhereby you will be asked to leave. Contrary to popular belief, your cell phone is not a breathing apparatus;you can survive without it.

5.3 Food and Drinks

Please, do not eat food in class. It is distracting to me and your fellow students. Bottled water, coffee, tea, softdrinks, etc. are fine, but please be considerate and do not leave trash. If you spill something, clean it up.

5.4 Punctuality, Attendance, and Talking

Try to arrive to class on time. I understand you may be late from time to time, quite rarely though. If thisoccurs please enter the room quietly so as not to disturb the class. The same consideration applies if you mustleave early. Getting up and leaving the room during class will not be tolerated on a regular basis.

You are expected to attend every class. If you miss class, it is solely your responsibility to obtain the notesand/or materials given from a classmate. Office hours are not a substitute for class time, but you are encouragedto utilize office hours to clarify concepts after you have put forth effort on the material covered.

It is your responsibility to check the class website on a regular basis.

In consideration of your fellow students and the instructor, please refrain from talking with your neighborsduring class. If you have questions, ask me, not the student sitting next to you. Talking in class is rude anddistracting, both to me and to other students.

5.5 Academic Integrity

Academic honesty is expected. In fairness to the many students who work hard and put in an honest effort,those who in any way engage in acts of academic dishonesty or cheating will be treated most harshly as to dootherwise would devalue all honest student’s education. I encourage students to discuss economics and the classmaterial together (outside of class) and to help each other in solving problems and in coming to understand thematerial. In fact, you will find this class much easier if you do form study groups. Nevertheless, work submittedfor a grade must ultimately be the work of the individual student (save group work, of course) – not copiedfrom another student or from any other source. It is my policy to, at a minimum, assign a grade of zero for anyproblem set on which cheating occurs. In the event of any cheating on an exam or written assignment my policyis to assign a grade of F in the course. Furthermore, I will pursue all appropriate disciplinary measures providedby College policy; including expulsion.

5.6 Course Flexibility

If it becomes necessary to add to, delete from, or otherwise alter this syllabus, then I reserve the right to do soas I deem fit. However, I will clearly communicate any and all changes made to the class in a timely manner.

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ECON 354 – Economic Development Syllabus – Spring 2016

5.7 Course Cancellation

If class is canceled by me (has not happened yet), you will be notified as soon as possible through email and anote will be posted on the class website. If required, a make-up class will be scheduled.

5.8 Grade Dissemination

All grades will be posted on Blackboard. Due to privacy concerns grades will only be given through Blackboardor in person. Phone, email, and other postings of student’s grades will not occur per College policy. No one elseother than the student in question is able to collect graded material for someone else.

Unfortunately, due to a recent experience, I must point out I will not, nor do I have any desire to, discuss youracademic performance in anyway with your parents/guardians. Please, do not have anyone, other than yourself,contact me about your grades. I take your privacy seriously.

5.9 Recording of Lectures

Audio and/or any kind of video recording of lectures is prohibited and is a violation of federal copyright lawsunless you have a learning disability that requires such recording (see below). In the event you do have alearning disability requiring recording, all recordings must be used only by the person making them and mustbe destroyed at the end of the semester.

5.10 Course Material

The course material (e.g., slides, exams with solutions, etc.) is provided on my website to help you. Do NOTpost the material to any other website; e.g., Course Hero.

6 Saint Mary’s College Policies and Relevant Information

6.1 Students with Disabilities

Any student who is eligible for accommodations should contact Iris Giamo in the Disabilities Resource Office (103CMadeleva Hall, phone 284–4262, e-mail igiamo@saintmarys.edu) for an appointment to review documentation andarrange for appropriate accommodations. Students who suspect they may have a disability are also encouragedto contact the Disabilities Resource Office.

6.2 Academic Calendar5 (Important Dates)

Month Date Day Event

January 11 Monday 1st Class dayFebruary 12 Friday Last day to drop

March 5–13 Saturday–Sunday BreakMarch 25–28 Friday–Monday EasterApril 28 Thursday Last class day

April, May 29–30, 1 Friday–Sunday Study daysMay 2–6 Monday–Friday Final Exams

6.3 Department of Business Administration and Economics

6.3.1 Mission

The BUEC departmental mission is to prepare competent professional women who are ethically, culturally,and globally aware, who can communicate effectively and think independently, and who value community,collaboration and life-long learning.

5https://www.saintmarys.edu/academics/resources/academic-calendar

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ECON 354 – Economic Development Syllabus – Spring 2016

6.3.2 Student Learning Goals

BUEC Programs emphasize the following student learning goals:

· To acquire technical competency in the fields of accounting, management, management informationsystems, marketing, finance, international business, and economics;

· To acquire professional technological and informational literacy skills;

· To acquire competency in quantitative skills;

· To develop problem solving skills;

· To develop communication and interpersonal skills;

· To develop an ethical sensitivity in a business context;

· To develop a multicultural/international business perspective; and

· To explore gender issues in a business setting.

7 (Tentative6) Schedule

Month Date Day Topic† Due‡

January 11 Monday Syllabus/Course Overview –January 13 Wednesday The Development Gap –January 18 Monday The Development Gap –January 20 Wednesday Poverty and Inequality –January 25 Monday Poverty and Inequality –January 27 Wednesday Poverty and Inequality –February 1 Monday Population Growth –February 3 Wednesday Population Growth Memo 1February 8 Monday Economic Growth –February 10 Wednesday Economic Growth –February 15 Monday Economic Growth –February 17 Wednesday Structural Change –February 22 Monday Structural Change PS 1February 24 Wednesday International Trade –February 29 Monday International Trade –

March 2 Wednesday Midterm 11:00 a.m.–12:15 p.m.March 7 Monday Break –March 9 Wednesday Break –March 14 Monday International Trade –March 16 Wednesday Institutions –March 21 Monday Institutions Memo 2March 23 Wednesday Political/Legal Institutions –March 28 Monday Easter –March 30 Wednesday Political/Legal Institutions –April 4 Monday Credit Markets –April 6 Wednesday Credit Markets –April 11 Monday Health Care Human Development IndicatorApril 13 Wednesday Health Care –April 18 Monday Education –April 20 Wednesday Education PS 2April 25 Monday Corruption –April 27 Wednesday Conflict Country ReportMay 5 Thursday Final Exam 4:15 p.m.–6:15 p.m.

† Note: See the Readings section (next section) for the associated readings.‡ All assignments and problem sets are due by the end of class (12:15 p.m.).

6“The best laid schemes o’ mice an’ men Gang aft a-gley” [often go awry] – Robert Burns, To a Mouse, 1786

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8 Readings

The Development Gap

• Books

1. Banerjee and Duflo, Poor Economics, 2012

(a) Forward

(b) Chapter 1 – “Think Again, Again”

2. Easterly, The Elusive Quest for Growth, 2002

(a) Chapter 1 – “To Help the Poor”

3. Sen, Development as Freedom, 2000

(a) “Introduction: Development as Freedom”

(b) Chapter 1 – “The Perspective of Freedom”

(c) Chapter 2 – “The Ends and the Means of Development”

4. Todaro and Smith, Economic Development, 2012

(a) Chapter 1 – “Introducing Economic Development: A Global Perspective”

• Articles

1. Marx, Benjamin, Thomas Stoker, and Tavneet Suri. 2013. “The Economics of Slums in the DevelopingWorld”. Journal of Economic Perspectives, 27(4): 187–210.

Poverty and Inequality

• Books

1. Banerjee and Duflo, Poor Economics, 2012

(a) Chapter 2 – “A Billion Hungry People”

2. Collier, The Bottom Billion, 2008

(a) Chapter 1 – “Falling Behind and Falling Apart: The Bottom Billion”

3. Deaton, A. (2006) “Measuring Poverty” in Understanding Poverty, Banerjee, Benabou, and Mookher-jee (eds.), pp. 19–35.

4. Todaro and Smith, Economic Development, 2012

(a) Chapter 2 – “Comparative Economic Development”

(b) Chapter 5 – “Poverty, Inequality, and Development”

• Articles

1. Banerjee, Abhijit V., and Esther Duflo. 2007. “The Economic Lives of the Poor”. Journal ofEconomic Perspectives, 21(1): 141–168.

2. Besley, Timothy, and Robin Burgess. 2003. “Halving Global Poverty”. Journal of EconomicPerspectives, 17(3): 3–22.

3. The Economist, “More or Less Equal?”, March 2004

4. The Economist, “The Mountain Man and the Surgeon”, December 2005

• Videos

1. Hans Rosling, “The Best Stats You’ve Ever Seen”, February 2006

2. Hans Rosling, “New Insights on Poverty”, March 2007

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ECON 354 – Economic Development Syllabus – Spring 2016

Population Growth

• Books

1. Banerjee and Duflo, Poor Economics, 2012

(a) Chapter 5 – “Pak Sudarno’s Big Family”

2. Easterly, The Elusive Quest for Growth, 2002

(a) Chapter 5 – “Cash for Condoms?”

3. Sen, Development as Freedom, 2000

(a) Chapter 9 – “Population, Food and Freedom”

4. Todaro and Smith, Economic Development, 2012

(a) Chapter 6 – “Population Growth and Economic Development: Causes, Consequences, andControversies”

(b) Chapter 7 – “Urbanization and Rural-Urban Migration: Theory and Policy”

• Articles

1. J. Tierney, “Fanisi’s Choice”, Science 86, (Jan/Feb 1986), pp. 26-42. (e-R)

2. D. Malakoff, “Are More People Necessarily a Problem?”; J. Kaiser, “Does Family Planning BringDown Fertility?”; and J. Bongaarts and S. Sinding, “Population Policy in Transition in the DevelopingWorld”, Science, Population Issue (July 29, 2011), pp. 544-46; 548-49; 574-76.

3. Sen, “More than A Million Women Are Missing”, New York Review of Books 37(2) December 20,1990

Economic Growth

• Books

1. Gregory Clark, A Farewell to Alms: A Brief Economic History of the World, Princeton, 2007,“Introduction: The Sixteen Page Economic History of the World”, pp. 1–18.

2. Easterly, The Elusive Quest for Growth, 2002

(a) Chapter 2 – “Aid for Investment”

(b) Chapter 3 – “Solow’s Surprise: Investment Is Not the Key to Growth”

(c) Chapter 8 – “Tales of Increasing Returns: Leaks, Matches, and Traps”

(d) Chapter 9 – “Creative Destruction: The Power of Technology”

3. Todaro and Smith, Economic Development, 2012

(a) Chapter 3 – “Classic Theories of Economic Growth and Development”

(b) Chapter 4 – “Contemporary Models of Development and Underdevelopment”

• Articles

1. Collier, Paul, and Jan Willem Gunning. 1999. “Why Has Africa Grown Slowly?” Journal ofEconomic Perspectives, 13(3): 3–22.

2. Easterly, William. 2003. “Can Foreign Aid Buy Growth?” Journal of Economic Perspectives, 17(3):23–48.

3. Pritchett, Lant. 1997. “Divergence, Big Time”. Journal of Economic Perspectives, 11(3): 3–17.

4. The Economist, “Middle-Income Claptrap”, February 2013

5. The Economist, “The Road to Hell Is Unpaved”, December 2002

Structural Changes and Development Strategies

• Books

1. Collier, The Bottom Billion, 2008

(a) Chapter 7 – “Aid to the Rescue?”

2. Sachs, The End of Poverty, 2006

(a) Chapter 4 – “Clinical Economics”

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ECON 354 – Economic Development Syllabus – Spring 2016

(b) Chapter 10 – “The Voiceless Dying: Africa and Disease”

(c) Chapter 11 – “The Millennium, 9/11, and the United Nations”

(d) Chapter 12 – “On-the-Ground Solutions for Ending Poverty”

(e) Chapter 13 – “Making the Investments Needed to End Poverty”

(f) Chapter 14 – “A Global Compact to End Poverty”

(g) Chapter 15 – “Can the Rich Afford to Help the Poor”

(h) Chapter 16 – “Myths and Magic Bullets”

(i) Chapter 17 – “Why We Should Do It”

3. Todaro and Smith, Economic Development, 2012

(a) Chapter 14 – “Foreign Finance, Investment, and Aid: Controversies and Opportunities”

(b) Chapter 15 – “Finance and Fiscal Policy for Development”

• Articles

1. Easterly, William, and Tobias Pfutze. 2008. “Where Does the Money Go? Best and Worst Practicesin Foreign Aid”. Journal of Economic Perspectives, 22(2): 29–52.

2. Acemoglu, Daron, and James A. Robinson. 2013. ”Economics versus Politics: Pitfalls of PolicyAdvice.” Journal of Economic Perspectives, 27(2): 173–92.

3. Rodrik, Dani. 2010. ”Diagnostics before Prescription.” Journal of Economic Perspectives, 24(3):33-44.

4. J. Sachs, “Can Extreme Poverty Be Eliminated?” Scientific American (Sept. 2005), pp. 56–65.

5. S. Chayes, “Scents & Sensibility”, The Atlantic (December 2007).

6. N. Kristof, “Aid: Can It Work?”, The New York Review of Books (October 5, 2006)

7. Sachs, Jeffrey (2007), “Breaking the Poverty Trap”. Scientific American, August 17.

8. Easterly, William (2007), “Africa’s Poverty Trap”. Wall Street Journal, March 23.

9. Li, Hongbin, Lei Li, Binzhen Wu, and Yanyan Xiong. 2012. ”The End of Cheap Chinese Labor.”Journal of Economic Perspectives, 26(4): 57-74.

International Trade and Exchange Rates

• Books

1. Collier, The Bottom Billion, 2008

(a) Chapter 3 – “The Natural Resource Trap”

(b) Chapter 10 – “Trade Policy for Reversing Marginalization”

2. Todaro and Smith, Economic Development, 2012

(a) Chapter 12 – “International Trade Theory and Development Strategy”

• Videos

1. Paul Collier, “The ‘Bottom Billion”’, March 2008

Institutions and Economic Development

• Books

1. Banerjee and Duflo, Poor Economics, 2012

(a) Chapter 6 – “Barefoot Hedge-Fund Managers”

2. Collier, The Bottom Billion, 2008

(a) Chapter 11 – “An Agenda for Action”

3. Sachs, The End of Poverty, 2006

(a) Chapter 3 – “Why Some Countries Fail to Thrive”

• Articles

1. Sokoloff, Kenneth L., and Stanley L. Engerman. 2000. ”Institutions, Factor Endowments, and Pathsof Development in the New World.” Journal of Economic Perspectives, 14(3): 217-232.

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ECON 354 – Economic Development Syllabus – Spring 2016

Political Institutions

• Books

1. Banerjee and Duflo, Poor Economics, 2012

(a) Chapter 10 – “Policies, Politics”

2. Todaro and Smith, Economic Development, 2012

(a) Chapter 11 – “Development Policymaking and the Roles of Market, State, and Civil Society”

Legal and Fiscal Institutions

• Books

1. Collier, The Bottom Billion, 2008

(a) Chapter 9 – “Laws and Charters”

The Role of Credit Markets in Development

• Books

1. Banerjee and Duflo, Poor Economics, 2012

(a) Chapter 7 – “The Men from Kabul and the Eunuchs of India: The (Not So) Simple Economicsof Lending to the Poor”

(b) Chapter 8 – “Saving Brick by Brick”

(c) Chapter 9 – “Reluctant Entrepreneurs”

• Articles

1. D. Roodman, “Think Again Microfinance”, Foreign Policy (February 2012)

2. Cull, Robert, Asli Asli Demirguc-Kunt, and Jonathan Morduch. 2009. ”Microfinance Meets theMarket.” Journal of Economic Perspectives, 23(1): 167-92.

3. Ogden, Timothy, and Jonathan Morduch. “Beyond Business: Rethinking Microfinance”. ForeignPolicy, 4 April 2013.

4. The Economist, “The Power of Mobile Money”, September 2009

Health Care Delivery in Developing Countries

• Books

1. Banerjee and Duflo, Poor Economics, 2012

(a) Chapter 3 – “Low-Hanging Fruit for Better (Global) Health?”

2. Todaro and Smith, Economic Development, 2012

(a) Chapter 8 – “Human Capital: Education and Health in Economic Development”

• Articles

1. Deaton, Angus. 2008. ”Income, Health, and Well-Being around the World: Evidence from the GallupWorld Poll.” Journal of Economic Perspectives, 22(2): 53-72.

2. Kremer, Michael. 2002. ”Pharmaceuticals and the Developing World .” Journal of EconomicPerspectives, 16(4): 67-90.

Delivering Education in Developing Countries

• Books

1. Banerjee and Duflo, Poor Economics, 2012

(a) Chapter 4 – “Top of the Class”

2. Easterly, The Elusive Quest for Growth, 2002

(a) Chapter 4 – “Educated for What?”

3. Todaro and Smith, Economic Development, 2012

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ECON 354 – Economic Development Syllabus – Spring 2016

(a) Chapter 8 – “Human Capital: Education and Health in Economic Development”

• Articles

1. Schultz, TPaul. 1999. ”Health and Schooling Investments in Africa.” Journal of Economic Perspectives,13(3): 67-88.

2. Edmonds, Eric V., and Nina Pavcnik. 2005. ”Child Labor in the Global Economy.” Journal ofEconomic Perspectives, 19(1): 199-220.

3. Banerjee, Abhijit, and Esther Duflo. 2006. ”Addressing Absence.” Journal of Economic Perspectives,20(1): 117-132.

4. Gary S. Becker. “Bribe” Third World Parents to Keep Their Kids in School Business Week.(Industrial/technology edition). New York: November 22, 1999. Iss. 3656; pg. 15. (2 pages)

5. Chaudhury, Nazmul, Jeffrey Hammer, Michael Kremer, Karthik Muralidharan, and F. Halsey Rogers.2006. ”Missing in Action: Teacher and Health Worker Absence in Developing Countries.” Journal ofEconomic Perspectives, 20(1): 91-116.

• Videos

1. Esther Duflo, “Social Experiments to Fight Poverty”, February 2010

Corruption

• Books

1. Collier, The Bottom Billion, 2008

(a) Chapter 5 – “Bad Governance in a Small Country”

2. Easterly, The Elusive Quest for Growth, 2002

(a) Chapter 12 – “Corruption and Growth”

• Articles

1. Svensson, Jakob. 2005. ”Eight Questions about Corruption.” Journal of Economic Perspectives,19(3): 19-42.

2. Bardhan, P. (1997), “Corruption and Development: A Review of Issues”, Journal of EconomicLiterature 35, 1320-1346.

Conflict

• Books

1. Collier, The Bottom Billion, 2008

(a) Chapter 2 – “The Conflict Trap”

(b) Chapter 8 – “Military Intervention”

2. Easterly, The Elusive Quest for Growth, 2002

(a) Chapter 11 – “Governments Can Kill Growth”

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