UNIVERSITY OF WATERLOO

POLITICAL ECONOMY OF DEVELOPMENT PSCI 350 / Spring 2012 Course Instructor: Veronica Rubio Vega Wednesdays 1:30 – 4:20 p.m.

Email: vrubiovega@balsillieschool.ca Lecture Room: ENV 350

Office Hours: 11:00 a.m. – 1:00 p.m. Wednesdays or by appointment Office Room: HH 340 Description

The course examines the theory and practice of development from a political economic perspective. The focus is

on the evolution of development thought and on the practical implications of distinct ways of understanding

development. Special attention is paid to the role attributed to states and international institutions in promoting

development. This course also explores links between governance and development as well as the contemporary

debate on the effects of globalization and commercial and financial integration for developmental outcomes.

Intended Learning Outcomes

The lectures, readings and assignments of this course are structured according to three main objectives: 1) to

provide students a historical overview of the evolution of development debates; 2) to acquaint students with the

history and functioning to the Bretton Woods institutions, especially the World Trade Organization; 3) to

provide students with a good understanding of the multifaceted relationship between economic growth, human

development, financial liberalization and international interdependence and 4) to stimulate students’ analytical

and critical thinking. Key questions that help organizing lectures include: How do states, international institutions

and markets interact to shape development strategies, policies and outcomes? Are the international trade and

financial systems a source of opportunities or constraints for developing countries?

Readings

Rapley, John. 2007. Understanding Development: Theory and Practice in the Third World. Third Edition.

Boulder: Lynne Rienner (UW bookstore & book reserve at the Dana Porter Library).

Gallagher, Kevin. 2005. Putting Development First: The Importance of Policy Space in the World Trade

Organization and international financial institutions. London; New York: Zed Books (UW bookstore & book

reserve at the Dana Porter Library). Electronic resources: journal articles, chapters of open source books, and policy papers. Reading material

has been placed on eReserves at the library (link on the Desire 2 Learn page) or has public domain Internet links

listed below. All articles are accessible online through the library. If any links are broken or if you are having

trouble accessing any of the articles through the library please let me know.

Format

Lectures followed by tutorials.

COURSE REQUIREMENTS

Participation in tutorials

All students are expected to do the required readings and actively participate in class discussions. Tutorials offer

students the chance to develop their understanding of the content and concepts presented in the lectures by

discussing them in relationship to specific issues. The format of questions discussed in tutorials is similar to

that of the exams and should help students in preparing for them. Texts listed as Complementary Reading are not

required but students are strongly encouraged to read them. These articles can enrich students’ understanding and

provide them more material to draw on in discussions, exams, and essays. Your participation grade will be based

on quality contributions to class discussions. Students will be evaluated by considering attendance throughout the

term and demonstrated knowledge of the readings by discussing content and by engaging in class discussions.

Discussion preparation document

This assignment can be completed anytime week between weeks 3-12 (except during Week 6 and Week 10). This

assignment has to be uploaded to D2L at least twelve hours before that week’s class. Students are required to

submit once during the course, a document that will have the following components for each required reading of

that week:

1. List of five key concepts and terms (note the page number of each term or concept).

2. Summary statement (five sentences maximum) of the author’s main argument. This statement should be

written in your own words as far as possible.

3. Describe how the main argument is constructed and supported by logic and evidence (ten to fifteen

sentences).

4. List two issues or questions in the reading that are important and merit some discussion. If possible, formulate

these in the form of a question (five sentences maximum).

Paper

All students are required to write an analysis paper answering a set of questions regarding a specific book. The

purpose of the essay is to use the content and concepts presented in lectures and discussed in tutorials to examine

influential texts in the development studies literature. The course instructor will distribute a handout with the set

of questions and a short list of texts on the tutorials of May 9. Essays should be well structured and coherent and

not in point form. Paper should be between 2500 and 3000 words. Please use a 12pt font, double-spaced pages,

and include the word count on the bottom of the last page. Papers are due on June 27 by 11pm and will be

handed back on July 18. The late penalty for the paper is 2% per day for 5 days, after which (keeping to UW

Political Science department grade submission deadlines) late papers will not be accepted. Extensions will be

granted only in the event that written confirmation of any extenuating circumstances is provided.

Exams

Mid-term exam: students will be asked to answer ten (out of ten) one-sentence-answer questions (1 point each)

and four (out of five) short-essay questions (5 points each). The mid-term is scheduled for June 6, in class.

Final exam: students will have to answer ten (out of ten) one-sentence-answer questions (1 point each), four (out

of six) short-essay questions (5 points each), and one (out of three) long essay question (10 points). The

first two sections will deal with material covered after the mid-term exam, whereas the long-essay question will

require students to draw together material from the entire course. The final exam will take place during the

exams period.

Evaluation

Mid-term exam 25%

Analysis paper 25%

Final exam 40%

Class participation 5%

Discussion Document 5%

Please Read Carefully

Cross-listed course: Please note that a cross-listed course will count in all respective averages no matter under

which rubric it has been taken. For example, a PHIL/PSCI cross-list will count in a Philosophy major average,

even if the course was taken under the Political Science rubric.

Academic Integrity:

Academic Integrity: In order to maintain a culture of academic integrity, members of the University of Waterloo

are expected to promote honesty, trust, fairness, respect and responsibility.

Discipline: A student is expected to know what constitutes academic integrity, to avoid committing academic

offences, and to take responsibility for his/her actions. A student who is unsure whether an action constitutes an

offence, or who needs help in learning how to avoid offences (e.g., plagiarism, cheating) or about “rules” for

group work/collaboration should seek guidance from the course professor, academic advisor, or the

Undergraduate Associate Dean. When misconduct has been found to have occurred, disciplinary penalties will be

imposed under Policy 71 – Student Discipline. For information on categories of offenses and types of penalties,

students should refer to Policy 71 - Student Discipline,

http://www.adm.uwaterloo.ca/infosec/Policies/policy71.htm

Grievance: A student who believes that a decision affecting some aspect of his/her university life has been unfair

or unreasonable may have grounds for initiating a grievance. Read Policy 70 - Student Petitions and Grievances,

Section 4, http://www.adm.uwaterloo.ca/infosec/Policies/policy70.htm

Appeals: A student may appeal the finding and/or penalty in a decision made under Policy 70 - Student Petitions

and Grievances (other than regarding a petition) or Policy 71 - Student Discipline if a ground for an appeal can be

established. Read Policy 72 - Student Appeals, http://www.adm.uwaterloo.ca/infosec/Policies/policy72.htm

Academic Integrity website (Arts): http://arts.uwaterloo.ca/arts/ugrad/academic_responsibility.html

Academic Integrity Office (University): http://uwaterloo.ca/academicintegrity/

Accommodation for Students with Disabilities: Note for students with disabilities: The Office for Persons

with Disabilities (OPD), located in Needles Hall, Room 1132, collaborates with all academic departments to

arrange appropriate accommodations for students with disabilities without compromising the academic integrity

of the curriculum. If you require academic accommodations to lessen the impact of your disability, please

register with the OPD at the beginning of each academic term.

Turnitin.com: Plagiarism detection software (Turnitin) will be used to screen assignments in this course. This is

being done to verify that use of all material and sources in assignments is documented. In the first week of the

term, details will be provided about the arrangements for the use of Turnitin in this course.

Note: students must be given a reasonable option if they do not want to have their assignment screened by

Turnitin. See: http://uwaterloo.ca/academicintegrity/Turnitin/index.html for more information.

Topics and Readings Week 1: May 2. The Broad Question: What is the Relationship between Economic and Social Change?

Smith, Adam. 1776. Of the Division of Labour; Of the Principle Which Gives Occasion to the Division of

Labour; That the Division of Labour is Limited by the Extent of the Market. In An Inquiry into the Nature

and Causes of the Wealth of Nations (Book 1), pp. 10-25. Available in site and online through the library.

Marx, Karl and Friedrich Engels. 1848. Bourgeois and Proletarians. In The Manifesto of the Communist

Party, pp. 1-12 including footnotes. Available in site and online through the library.

Weber, Max. 1905. Author’s Introduction (pp.13-31) and part of The Spirit of Capitalism (pp. 58-78). In

The Protestant Ethics and the Spirit of Capitalism. Available in site and online through the library.

Week 2: May 9. Development Theory in the Postwar Period

Rapley, J. Understanding Development. Chapter 2: Development Theory in the Postwar Period, pp. 13-33.

Levine, D.P. Political Economy and the Idea of Development. Review of Political Economy 13:4 (2001),

pp. 523-36.

Rostow, W.W. 1959. The Stages of Economic Growth. The Economic History Review 12(1): 1-16.

Frank, Andre Gunder. 1966. The Development of Underdevelopment. Monthly Review 18 (4)

(September), pp.17-31.

↘Tutorial – Drawing Schemas: Rostow vs. Frank; Essay instructions

Complementary Reading * Cardoso, Fernando H. 1972. Dependent Capitalist Development in Latin America. New Left Review I/74: 83-95.

Week 3: May 16: Import Substitution Industrialization

Rapley, J. Understanding Development. Chapter 3: State Led Development in Practice, pp. 35-62.

Wade R. in Gallagher. K. Putting Development First. Chapter 5: What Strategies are Available for

Developing Countries Today, pp. 94-95.

Ahiakpor, James C. W. 1985. The Success and Failure of Dependency Theory: The Experience of Ghana.

International Organization 39 (3), pp. 535-552.

Steel, William F. 1972. Import Substitution and Excess Capacity in Ghana. Oxford Economic Papers 24 (2),

pp. 212-240.

↘Tutorial – Drafting Tables: Pros and Cons of ISI Complementary Reading

* Baer, Werner. 1972. Import Substitution and Industrialization in Latin America: Experiences and Interpretations.

Latin American Research Review 7 (1) (Spring): pp. 95-122 (main text ends on p.111; short and very informative).

Week 4: May 23. The Bretton Woods System

Gallagher. K. Putting Development First. Chapter 1: Globalization and the Nation State, pp. 10-12

Bordo. Michael D. 1993. The Bretton Woods International Monetary System: A Historical Overview. In

A Retrospective on the Bretton Woods System: Lessons for International Monetary Reform, eds., Bordo.

Michael D and Barry Eichengreen, pp. 28-51 and 74-83. Chicago: University of Chicago Press.

http://www.nber.org/chapters/c6867.pdf

Woods, Ngaire.2008. Bretton Woods Institutions. In The Oxford Handbook on the United Nations, eds.

Weiss, Thomas G. and Sam Daws, pp. 233-253. Oxford: Oxford University Press. Available online through the library.

Complementary Reading

* Helleiner, E. 2010. The Development Mandate of International Institutions: Where Did It Come From? Studies

in Comparative International Development 44(3): pp.189-211.

↘Tutorial – Mapping the mandate of Bretton Woods Institutions

Week 5: May 30. Neoliberalism and Structural Adjustment Programs (class will be held at PAS 1229 due to

Congress 2012)

Rapley, J. Understanding Development. Chapter 4: The Neoclassical Answer to Failure, pp. 63-86; Chapter

5: Neoclassical Reform in Practice, pp. 87-133.

Lall, S. in Gallagher. K. Putting Development First. Chapter 3: Rethinking Industrial Strategy, pp. 33-48

↘Tutorial – Mid-term Review

Complementary Readings

* Stiglitz, J. E. 2004. The Post Washington Consensus Consensus. The Initiative for Policy Dialogue,

Columbia University. http://policydialogue.org/files/events/Stiglitz_Post_Washington_Consensus_Paper.pdf *Evans in Gallagher. K. Putting Development First. Chapter 10: Neoliberalism as Political Opportunity, pp. 195-213.

Week 6: June 6. Mid-term exam No tutorials

Week 7: June 13. The “End” of Development and Post-Development

Rapley, J. Understanding Development. Chapter 6: Development Theory in the Wake of Structural

Adjustment, pp. 135-153; Chapter 7: The End of the Development State, pp. 155-184.

Escobar, Arturo. 2000. Beyond the Search for a Paradigm? Post-Development and beyond. Development

43(4), pp.11-14.

↘Tutorial –Life and Debt, documentary by Stephanie Back. Followed by discussion. Complementary Reading

* Rist, Gilbert. 2008. The History of Development: From Western Origins to Global Faith. New York: Zed Books,

especially Chapter 3 to 7. Available online through the library.

Week 8: June 20. “Good Governance”, “Good Institutions” and Social Capital

Chang, HG. in Gallagher. K. Putting Development First. Chapter 6: Kicking Away the Ladder, pp. 102-124

Ben, Fine. 1999. The Developmental State Is Dead - Long Live Social Capital? Development and Change,

30(1), pp. 1-19.

Woods, N. 2000. The Challenge of Good Governance for the IMF and the World Bank Themselves. World

Development, 28(5): pp. 823-841.

Baracuhy, B. 2012. Running into a Brick Wall: The WTO Doha Round, Governance Gap and Geopolitical

Risks. Global Policy 3(1): pp. 108-110.

Tutorial – Analysis and discussion of the implications of “good governance” and of new stories in

http://blogs.worldbank.org/governance/ How are the papers coming!?

Complementary Readings * World Bank. 1994. Governance - the World Bank’s Experience. Series Development in Practice .http://www-

ds.worldbank.org/external/default/WDSContentServer/IW3P/IB/1994/05/01/000009265_3970716142854/Rendered/

PDF/multi0page.pdf pp. xii-ix and 1-36.

* Williamson. J, What should the World Bank think about the Washington Consensus? The World Bank Research

Observer, 15 (2), pp. 251-264

Week 9: June 27. Globalization and Development ↘↘ (PAPERS DUE) ↙↙

Stiglitz, J. in Gallagher. K. Putting Development First. Chapter 2: Development Policies in a World of Globalization, pp. 15-33. Bhaduri, A. in Gallagher. K. Putting Development First. Chapter 4: Toward the Optimum Degree of Openness. pp. 69-78. Ellis, J. 2008. Working Class Women theorize Globalization. International Feminist Journal of Politics, Vol. 10(1): pp. 40-58. ↘Tutorial – China Blue, documentary by Teddy Bear Films (Scenes 1-3, 7-11). Followed by discussion on the impact of globalization on development.

Complementary Readings

*Cardoso, F. 2009. New Paths: Globalization in Historical Perspective. Studies in Comparative International

Development 44(4): pp.296-317.

*Arrighi, G. et al. 2003. Industrial Convergence, Globalization, and the Persistence of the North-South Divide. .

Studies in Comparative International Development 38(1): pp.3-31.

Week 10: July 4. No Class.

Week 11: July 11. The Political Economy of Development and the International Trading System

Wade R.in Gallagher. K. Putting Development First. Chapter 5: What Strategies are Available for Developing Countries Today, pp. 81-94, 98-99.

Singh A. in Gallagher. K. Putting Development First. Chapter 12: Special and Differential Treatment, pp. 233-260.

Narlikar, A. 2010. New Powers in the Club: The Challenges of Global Trade Governance. International Affairs 86 (3): pp. 717-728.

↘Tutorial – Class Debate: “The existence of the WTO benefits developing countries.” What are the

arguments “for” and “against” in this debate?

Complementary Readings

* The South Center. 2011.“Present Situation of the WTO Doha Talks and Comments on the 21 April 2011

Documents,”http://www.southcentre.org/index.php?option=com_docman&task=doc_download&gid=2031&Itemid=1

82&lang=en (especially the Annex)

* Bhagwati, Jagdish . “Life without Doha,” 30 May 2011. Project Syndicate. http://www.project-

syndicate.org/commentary/bhagwati13/English

Week 12: July 18. The Political Economy of Development and Global Finance

Gallagher K. 2009. The Global Economic Crisis and the Developing World: What Next? Interview with Robert Wade and José Antonio Ocampo. Challenge 52(1): pp. 27-39. Wade, R. 2010. After the Crisis: Industrial Policy and the Developmental State in Low-Income Countries. Global Policy 1(2): pp. 150-61. Rajan, R.G. 2005. Has Financial Development Made the World Riskier? Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming. August 27, 2005. pp. 313-319, 359-360.

http://www.kansascityfed.org/publicat/sympos/2005/pdf/rajan2005.pdf Clapp, J. 2009. Food Price Volatility and Vulnerability in the Global South: Considering the Global Economic Context. Third World Quarterly 30(6): pp. 1183 - 1196. ↘Tutorial – Debate: What is the relation between financial liberalization, financial markets and development?

Complementary readings

* Ghosh, Jayati. “Food insecurity means few would mourn the death of Doha,” 03 May 2011. The Guardian.

http://www.guardian.co.uk/global-development/poverty-matters/2011/may/03/food-insecurity-death-doha-trade-talks

Week 13: July 25. Overview and Conclusion

Rapley, Understanding Development. Chapter 1: The Progress of Development, pp. 1-10 ; Conclusion, pp. 205-226. Wade, R. 2010. Is the Globalization Consensus Dead? Antipode 41(S1): pp.142-65.

Mieres, F. 2009. Financing for development and the reform of the financial architecture  : A view from

Latin America. Dialogue on Globalization, pp. 2-6. http://library.fes.de/pdf-files/iez/global/06318.pdf

Complementary Readings

* Thrasher, R.D. and K., Gallagher. 2010. 21st Century Trade Agreements: Implications for Development

Sovereignty. Denver Journal of International Law and Policy, 38 (2), pp. 313-350.

http://www.law.du.edu/documents/djilp/38No2/Thrasher-Final.pdf

↘Tutorial – Hand back essays, Final Exam Q&A, Course Feedback and Evaluation