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LECTURE NOTES

to accompany

Development Economics

Ramesh Mohan

Bryant University




Lecture Notes to accompany

Development Economics

Ramesh Mohan

Copyright © 2005 E.Wayne Nafziger Development Economics

The contents or parts thereof, may be reproduced in print form solely for classroom use with DEVELOPMENT ECONOMICS

provided such reproduction bear copyright notice, but may not be reproduced in any other form without prior written consent of E.Wayne Nafziger or Cambridge University Press, in any network or other electronic storage or transmission, or broadcast for distance learning.

Preface

The lecture notes that accompanies Nafziger’s Development Economics, Fourth Edition textbook is a handy teaching tool for both first-time and experienced instructors. It is difficult to remember all the important points or facts in a 800-page development text. Hopefully, these lecture notes provide a comprehensive summary of the chapters, serving as a helpful device in providing quality instruction to students.


Using the lecture notes, instructors can quickly review the whole chapter and get an idea of the main topic and sub-topics. Since the lecture notes are available electronically in a word document, it provides flexibility to instructors to edit or add based on their needs.

In addition to the lecture notes, instructors are encouraged to use the Students’ Study Guide, Internet Assignment, Journal and Internet Resouces, Test Bank and Instructor’s Manual to enhance teaching. The supplements are available at


http://www.k-state.edu/economics/nafwayne/Nafzdev.htm.
We have done our best to assist instructors to present quality and reputed development lectures. Good luck.

Ramesh Mohan

Bryant University
Table of Contents

(For convenience, longer chapters can be divided into 2 parts, as indicated by page numbers)

PART I PRINCIPLES AND CONCEPTS OF DEVELOPMENT

1. Introduction (pp. 1-14)

2. The Meaning and Measurement of Economic Development (pp. 15-29, 30-52)

3. Economic Development in Historical Perspective (pp. 53-74, 74-94)

4. Characteristics and Institutions of Developing Countries (pp. 123-142, 142-164)

5. Theories of Economic Development (pp. 123-142, 142-164)



PART II POVERTY ALLEVIATION AND INCOME DISTRIBUTION

6. Poverty, Malnutrition, and Income Inequality (pp. 165-186, 186-219)

7. Rural Poverty and Agricultural Transformation (pp. 220-245, 245-269)

PART III FACTORS OF GROWTH

8. Population and Development (pp. 271-284, 284-307)

9. Employment, Migration, and Urbanization (pp. 308-333)

10. Education, Health, and Human Capital (pp. 334-360)

11. Capital Formation, Investment Choice, Information Technology,

and Technical Progress (pp. 361-377, 378-391)

12. Entrepreneurship, Organization, and Innovation (pp. 392-412)

13. Natural Resources and the Environment: Toward Sustainable Development (pp. 413-434,

434-464)

PART IV THE MACROECONOMICS AND INTERNATIONAL

ECONOMICS OF DEVELOPMENT

14. Monetary, Fiscal, and Incomes Policy, and Inflation (pp. 465-478, 478-500)

15. Balance of Payments, Aid, and Foreign Investment (pp. 501-526, 526-550)

16. The External Debt and Financial Crises (pp. 551-566, 566-590)

17. International Trade (pp. 591-615, 615-654)

PART VI DEVELOPMENT STRATEGIES

18. Development Planning and Policymaking: the State, and the Market (pp. 655-676)

19. Stabilization, Adjustment, Reform, and Privatization (pp. 677-700, 700-736)


CHAPTER 1: ORGANIZATION OF THE TEXT

The book is organized into six parts.




  • Chapters 1-5 focus on principles and concepts of economic development.

  • Chapters 6-7 examine income distribution, including a discussion of the distribution between urban and rural areas and the process of agricultural transformation.

  • Chapters 8-13 analyze the role of population, production factors, and technology in economic development, with special emphasis in Chapter 13 on the environment and natural resources.

  • Chapters 14-17 discuss the macroeconomics and international economics of development.

  • Chapter 18 looks at planning for economic development.
  • Chapter 19 analyzes stabilization, adjustment, reform, and privatization.



HOW THE OTHER THREE-QUARTERS LIVE

Inequality between the world’s rich and poor


  • Development economics focuses primarily on the poorest three-fourths (to be precise, 78 percent) of the world's population.

  • These poor are the vast majority, but not all, of the population of developing countries, which comprise 81 percent of the world’s population. Many of them are inadequately fed and housed, in poor health, and illiterate.

  • If you have an average income in the United States and Canada, you are among the richest 5 percent of the world's population. The economic concerns of this 5 percent are in stark contrast to those of the majority of people on this planet.

A North American family


  • An average intact family (Smith) in the United States and Canada - a family of four

  • has an annual income of $55,000 to $60,000

  • Live in a three bedrooms apartment, a living room, kitchen, and numerous electrical appliances and consumer goods.

  • Three meals a day include coffee from Brazil, tinned fruit from the Philippines, and bananas from Ecuador.

  • Children are in good health.

  • Average life expectancy of 77 years.

  • Both parents received a secondary education, and the children can be expected to finish high school and possibly go to a university.

  • Their jobs will probably be relieved by modern machinery and technology.


  • Though they seem to have a reasonably good life, they may experience stress, frustration, boredom, insecurity, and a lack of meaning and control over their lives –air/water polluted, and roads congested..



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