ECON 240: development economics

Course Lecturers:

Professor: Dr. Tom Mwebaze
Professor: Ms. Judith Kabajulizi

Introductory Notes:

This course is meant to acquaint students with the basics of Development Economics. It is concerned with the application of Economics to the problems of Developing Countries. Students will be introduced to economic concepts as applied to Developing Economies particularly in Africa, and specifically the East African region.

Aims and Objectives of the course:

The overall aim of this course is to equip students with the necessary knowledge, understanding and skills to work effectively as economists in development-related activities. The specific objectives include:

To provide students with a basic knowledge of the key structural features of developing countries in general and Africa in particular.
To enhance students’ understanding of the contribution which economic analysis can make in analyzing key problems in Africa.
3. To equip students with the analytical tools needed for the economic analysis of key problems and policy issues faced by developing countries in Africa.
Appreciate the scale and diversity of the development problems of poor countries, Africa in particular.
Understand the economic rationale underlying developmental changes in Africa.

Course Delivery:

The course duration is three (3) weeks. The course is taught from 8:30am-12:30pm with a half hour break, three days a week. One day a week, two lectures will be set aside for field trips within Kampala and the neighborhood. Students will be exposed to industrial/agricultural activities in Uganda for a hands-on experience in the sectoral production processes and institutional operations in Uganda, which may be compared to their own countries. One day will be utilized for research/library.

Course Texts:

The following three text books will be used during this course:

Jhingan M.C.(2003), The Economics of Development and Planning (36th Revised Edition), Vrinda Publications (P) ltd.
Meier, M. Gerald, Leading Issues in Economic Development, Latest Edition), Oxford University Press, New York.
Ray D. (1998) Development Economics Chap. 2, 6, and 8, Princeton University Press, Princeton.

These books are not sufficient to cover the course satisfactorily. The Essential Readings and some of the Suggested Further readings indicated in the reading list must also be covered (listed further down in this document). These readings will be available on reserve at the Faculty library and some of the more recent articles are downloadable from the internet.

Data Sources:

Some of the sessions may make use of quantitative development data. These will include web-based data sources such as the World Bank which has country and theme related data on-line; World Development Indicators (WDI) of comparable time series for most countries on a wide range of themes; UN agency data (e.g UNDP; and country and theme specific data sources both on-line and in published format.

Assessment:

Class participation: 10%
Two in-class tests: 30%
20 Page project: 60%

(To be graded by Makerere University designated readers. Details to be provided at the on-set of the course).

Note: Class participation will be based upon class attendance, class participation and field trips.

Course Outline:

Day	Topic
1	Introduction by course coordinator Introduction and review of key economic principles Introduction of economics research project Visit informal business sector
2	Income distribution (forms of income distribution) Poverty and inequality (Causes and consequences of poverty, poverty and social conflict)
3	Understand the rationale underlying national classification of countries by income and other variables. Research project consultation with professors
4	Theories and strategies of growth and development Growth and development in developing countries (Indicators, Terminology), famine and food
5	Concepts, meaning and measurement of economic development. Understand the forms of LDC inequality, evaluate the U-hypothesis, and relate inequality to growth and development.
6	The role of international organizations on developing economies (role of multilateral development banks and the IMF.) Research time
7	Research
8	In-class test Globalization of trade (understand the phenomenon and debate, evaluate the consequences for LDCs)
9	In-class test 2 Foreign direct investment
10	Bilateral and multilateral donors (alternative sources of external sources of finance, types, motives and effects).
11	Governance, democracy and decentralization
12	Structural reforms, stabilization/adjustment

Essential Readings (on Reserve):

Wayne Nafziger, The Economics of Developing Countries, Prentice Hall, Upper Saddle River, NJ 07458, USA, 3rd Edition , 1997. Ch.2.
Olowu, D. and J. S. Wunsch (2003) African Decentralization and Local Governance. Boulder, Colorado.
Dornbusch R. (1985), External Debt, Budget Deficits and Disequilibrium Exchange Rates in GW Smith and JT Cuddington (eds) International Debt and the Developing Countries, World Bank, Washington.
Cline W R, 1995, International Re-examined, Ch. 4 and 5, Institute for International Economics, Washington.
World Bank (2000) World Development Report 2000/2001: Attacking Poverty (OUP). Overview and Chapters 1 and 2, plus look at the selected World Development Indicators in the back.
Subramanian, S. and A Deaton (1996) The Demand for Food and Calories Journal of Political Economy, 104, 133-62
Easterly, Williams and Ross Levine, 1997, Africa’s Growth Tragedy: Policies and Ethic Divisions Quarterly Journal of Economics, 1203-50.
John C, Local Democracy, Democratic Decentralization and Rural Development: Theories, Challenges and Options for Policy, Development Policy Review, Dec. 2001, Vol. 19, no. 4, pp. 521-532(12), Blackwell Publishing.
Rodrik D. 1992, The Limits of Trade Policy Reform in Developing Countries, Journal of Economic Perspective, Vol. 6.