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Economics C171/EnvEcon&Policy C151, Fall 2010 International Economic Development and Policy Instructor: Alain de Janvry GSIs: Gianmarco León and Stanislao Maldonado Tu & Th, 9.30 to 11 a.m., 159 Mulford Hall Course Syllabus Updated August 24, 2010 Information about the class, including the course outline and reading list, homework assignments, and past years' examinations are given on the course's homepage at the following address Please see the homepage for instructions regarding policies on class behavior, examinations, and grades. EconC171/EEPC151 is a four unit course with three hours of lecture and one hour of discussion per week. You need to sign up for one of the discussion sections through TeleBEARS. You must sign up in person in one section the first time the session is held to be kept on the class list. Sign up sheets will be available in the sections. Attendance to one discussion section is mandatory. There are four sections scheduled as follows: Monday, 1-2pm, 2312 Tolman Monday, 2-3pm, 2320 Tolman Wednesday, 2-3pm, 2308 Tolman Wednesday, 4-5pm, 2301 Tolman Grading of assignments and exams will not be done by each GSI separately, but collectively by the instructors and the two GSIs. Adding the course If you are not in the course but wish to add it, you should consult the Economics Department (Jennifer Cornet <[email protected]>) for Econ 171 and ARE Department (Gail Vawter <[email protected]>) for EEP 151. Neither the instructor nor the GSIs have the authority to get you registered in the class. Readings The textbook for this class is written by the instructor and will be provided freely. Chapters assigned for reading will be posted on the course webpage before each class. Assigned readings on current issues and case studies will be accessible through the internet. Course objectives This course on International Economic Development and Policy has the following objectives for participants: · Learn to apply the tools of economic analysis to problems of growth, poverty, and



· ·

environmental sustainability in developing countries. Understand (1) why some poor countries have been catching up with the industrialized countries in per capita income, while others are increasingly lagging behind, (2) why half of humanity remains poor, and (3) why environmental degradation and resource exhaustion are commonly associated with income growth. Understand what can be done to promote development through policy and investment projects, and learn to analyze the economic, social, and environmental impacts of specific initiatives. Use data to conduct development analyses such as growth diagnostics, poverty assessments, and environmental impacts and learn to prepare the corresponding reports for international development agencies.

Course contents The course looks at the roles attributed to market forces, state interventions, private firms, and civil society organizations in alternative development strategies. It analyzes the roles of human and capital resources, the contributions of different sectors of the economy to economic growth and the specific functions of agriculture, the expected gains from international trade, the determinants of technological and institutional innovations, and the political economy of government behavior. Specific problems that are addressed include the formulation of planning models, stabilization and adjustment policies, import substitution and export-led industrialization strategies, project evaluation techniques, the role of agriculture in economic development, land reform and rural development, the behavior of peasant households, the logic of agrarian institutions and grassroots organizations, cooperation and community behavior, and sustainability in the use of natural resources. The course is issue and problem-solving oriented, making rigorous use of the tools and techniques of applied economic analysis. Course requirements There will be three quantitative exercises. These exercises require use of an Excel spreadsheet with which students must be familiar. There will be four policy briefs consisting in one-page opinion statements about selected current issues. There will be five development puzzles to be solved. These are also one-pagers requiring creative thinking in proposing and justifying solutions to the puzzle posed. Prerequisites Econ 100 A&B, or EEP 100, or consent of instructor. Development Studies students who have satisfied the major's lower division requirements are welcome. Requirements 1. Quantitative Exercises The three Quantitative Exercises will be due at the following dates: Exercise 1: Thursday, September 23 Exercise 2: Thursday, October 28 Exercise 3: Tuesday, November 23


Exercises will be given to students a week and a half to two weeks before the due date. The text and data for the exercises can be retrieved from the course homepage. Answers to the exercises must be typewritten and they must be done individually. Late exercises will be discounted at the rate of 2 points per day out of 8. 2. Policy Briefs There will be four one-page Policy Briefs to be formulated in response to questions raised in class. Short readings will be assigned for this purpose and posted on the course homepage. Policy briefs will be given to students one week before the due date. Briefs should be typewritten. They can be done by teams of two or individually. Due dates are as follows: Policy Brief 1: Thursday, September 9 Policy Brief 2: Thursday, October 7 Policy Brief 3: Thursday, November 4 Policy Brief 4: Thursday, December 2 Late policy briefs will be discounted at the rate of 0.5 points per day out of 2. 3. Development Puzzles There will be five puzzles consisting in development issues in need of a solution. They will be posted on the course homepage a week before the due date. Answers should be typewritten and no longer than one page. They can be done by teams of two or individually. Due dates are as follows: Puzzle 1: Thursday, September 2 Puzzle 2: Thursday, September 16 Puzzle 3: Thursday, September 30 Puzzle 4: Thursday, October 21 Puzzle 5: Tuesday, November 16 Late Development Puzzles will be discounted at the rate of 0.5 points per day out of 2. 4. Examinations There will be a mid-term and a final examination at the following dates: Mid-term examination: Tuesday, October 19, 9.30-11am (in class) Final examination (exam group 7): Tuesday, December 14, 3-6pm These exams are on fixed dates and there will be no make-ups. Do not enroll in the course if you cannot attend these exams as scheduled. See policy on exams on the homepage. Review questions will be handed out no less than a week before the examinations. An evening review session will be held by the instructor before each examination. 5. What you are expected to know for the examinations International economic development is an area of knowledge that is particularly vast. It is consequently important to be quite specific as to what we expect you to know for the examinations. Here is it: 1. Have studied your class notes. 2. Have read the assigned chapters. 3. Have read the assigned readings on current events and case studies


4. Recall what you will have learned from the Quantitative exercises, Policy Briefs and Development Puzzles. To help you prioritize this information, we will give you review questions and review concepts before both mid-term and final examinations. You can see past review questions, concepts, and examinations on the course homepage for 2009. 6. Grades The grade for the course will be based on the following components: 24% Quantitative Exercises: three counting for 8% each 6% Policy Briefs: four, of which the three best will count for 2% each. 10% Development Puzzles: five counting for 2% each 20% Mid-term examination (in class, 1h20'). 40% Final examination (exam group 7, 3 hours). You can see the distribution of grades for the 2009 class on the homepage. GSI's The GSI's for this class are Stanislao Maldonado and Gianmarco León. During the first half of the class, until the midterm, Stanislao will be in charge of all the sections, office hours, and all of the usual GSI work. After the midterm, Gianmarco will take over all these tasks. Office hours Alain: Fri 4-5.30pm in Giannini Hall 211. Stanislao (until October 14th): Tue. and Wed. 5:00-6:30pm. 314 Giannini Hall. Gianmarco (starting on October 20th): Mon. and Wed. 9:30-11:00am. 308 Giannini Hall. E-mail addresses Alain de Janvry: [email protected] Stanislao Maldonado: [email protected] Gianmarco Leon: [email protected] Tentative course outline Book chapters Introduction: How to think development (0.5 class) Chapter 1. What is development? Issues and indicators (1.5) Chapter 2. The state of development (1) Chapter 3. History of development and thought (1) Chapter 4. Poverty and vulnerability analysis (2) Chapter 5. Inequality and inequity (2) Chapter 7. Explaining economic growth: the macro level (1) Chapter 8. Modern perspectives on economic growth (1) Chapter 9. Population and development (2) Chapter 10. Labor and migration (2) Chapter 12. International finance and development (2)


Chapter 13. Financial services for the poor (2) Chapter 14. Development aid and its effectiveness (2) Chapter 15. Human capital: Education and health (2) Chapter 16. Impact evaluation of development interventions (2) Chapter 17. Sustainable development and the environment (2) Treatment of each subject will be structured as follows: Part 1 of class: Issue, diagnostic, theory, literature review, policy implications Part 2 of class: Examples, case study, problem solving exercise Readings for each subject: Part 1 of class: Chapter in book Part 2 of class: Reading on case study



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