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Development Economics

Description

In this graduate course important issues of the developing countries are analyzed from the standpoint of economics against a background of undergraduate knowledge of micro- and macroeconomics, and courses of action for an economically oriented development policy are discussed, by means of which the level of economic well-being in such countries can be raised. Problems of the credit markets and the capital formation with respect to the internal capital accumulation (Section 2) as well as from the perspective of international capital movements (Section 3) are singled out for discussion. The focus of attention then concentrates on the politico-economic analysis of the state and the assessment of efficiency in politico-economic terms (Section 4). These topics concern major problem areas whose importance goes beyond development policy. (Think of the connection between debt crisis and the stability of the international banking system.)

Course Outline

  1. Development Theory and Policy: Definitions and Methodological Basis
    1. Development and Developing Country: Definitions, Indicators, Classification
    2. Outcomes of the Development Process (A Historical Perspective)
    3. Methodological Aspects of the Economic Theory and Policy of Development
  2. Development and Capital Formation: Capital Markets in Developing Countries
    1. Traditional View: Insufficient Capital Formation in Developing Countries and its Causes
    2. Theoretical Analysis of Credit Markets in Developing Countries
    3. Application 1: Assessment of the Commercialization of the Microcredit and Related Concepts
    4. Application 2: Assessment of Strategies for Capital Market Liberalization
  3. Development and Capital Formation: International Borrowing by Developing Countries
    1. Description of the Debt Situation in Developing Countries
    2. Theoretical Analysis of Capital Markets with Sovereign Borrowers
    3. Assessment of Selected Measures for Solution of the Debt Crisis (Debt Relief, Repurchase of Debt, etc)
    4. Specifics of Development Aid
  4. Market and State in Developing Countries
    1. Starting Point: Typical Market and State Failure in Developing Countries
    2. A Politico-economic Perspective: Explanation of State Behavior
    3. A Regulatory Policy Perspective: the Economic Function of the State in Developing Countries
    4. Application 1: the Discussion around the Minimum State
    5. Application 2: Corruption in Developing Countries

Reading List

Aizenman,J. (1997), Wachstumsursachen - Wachstumshindernisse, In: Hagen, J. v.,Welfens, P., Börsch-Supan, A., (Hrsg.), Handbuch der Volkswirtschaftslehre. Bd. 2: Wirtschaftspolitik und Weltwirtschaft. Heidelberg, 407- 442.
Bardhan, P., Udrey, C., Development Microeconomics, Oxford 1999
Basu, K., (1997), Analytical Development Economics. The Less Developed Economy Revisited. Cambridge (Mass.), London
Bates, R. H., Prosperity and Violence. The Political Economy of Development, New York und London 2001
Easterly, W., (2000), The Elusive Quest for Growth, Cambridge (Mass.)
Meier, G., Rauch, J. E., Leading Issues in Development Economics Seventh Edition. New York, Oxford 2000
Ray, D., (1998), Development Economics. Princeton
Thiel, R.E. (Hrsg) (1999), Neue Ansätze zur Entwicklungstheorie, Bonn
Wagner, N., Kaiser. M. (1995), Ökonomie der Entwickungsländer. Eine Einführung. 3., neubearb. und erw. Aufl. Stuttgart

© Alfred Maußner 2012

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