Development Economics

Semester 1, 2020-2021
 What we study in our last lecture?
• Urbanization and Development
• Urbanization Trend
• Rural-Urban Migration
• Urban Informal sector
• Developing Urban Informal Sector
• Women in Urban Informal Sector
• Todaro’s R-U Migration Model
• Policies Inducing R-U Migration
• Policies Reducing R-U Migration
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 What we will learn?
• Development & Human Capital
• Determinants of Education Demand
• Return of Investment in Education
• The Education Gender Gap
• Social vs. Private Returns of Education
• Overview Module and Exam Pattern
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Development & Human Capital

• Health and education are investments in

human capital to improve labor productivity

• Investment in human capital is a major

determinant of growth and development
Development & Human Capital

• Investment in health increases the return to

investment in education

• Investment in education increases the return

to investment in health
Development & Human Capital

• Economic growth would not lead to substantial increases

in investment in children’s education and health

• Better educated mothers tend to have educated and

healthy children

• Market failure in education and health requires policy

action
 Determinants of Education Demand

• Wage or income differential paid to workers with

various levels of education
• Probability of success in finding a job in the formal
sector
• Direct private cost of education (e.g., tuition)
• Indirect or opportunity cost of education (i.e.,
foregone income)
Return of Investment in Education

• Initial investments in education lead to a

stream of higher future income
The Economics of Education
 The Education Gender Gap

Females receive less education than males in LDCs. To close the gap

• The rate of return on education is higher for female than male

• Female education increases productivity and lowers fertility

• Educated mothers raise educated children

• Female education helps break the vicious cycle of poverty and

inadequate schooling for women
The Education Gender Gap

Consequences of gender bias in health and

education
• Economic incentives
• Cultural setting
• Increase in family income does not always lead to
better health and education
Social vs. Private Returns of Education

• Social and private returns of education are

higher in LDCs than MDCs

• Private returns are higher than social returns

Social Costs & Returns

Costs/Returns Social Returns

Social Costs
Tertiary
Secondary
Primary
Public decision: Invest in primary education

Years of schooling completed

Private Costs & Returns

Private Returns
Costs/Returns

Tertiary Private Costs

Secondary
Primary

Private decision: Invest in higher education

Years of schooling completed

Health-Care and Development

Measurement and distribution

• Life expectancy at birth

• Child mortality
• Malnutrition and hunger
TW 01

• Overview of Global inequality .

• What is the nature of Development
Economics?
• What questions do we study in Development
Economics?
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TW 02
• The Concept of Development: Historical and
Modern
• Amartya Sen’s “Capability” Approach
• Core Values of Development
• Objectives of Development
• The Millennium Development Goals
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TW03 (04)
• What are ten important features of
developing countries?
• What is definition of developing world?
• What are basic indicators of development?
• What is traditional measure of HDI?
• What is new measure of HDI?
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TW 05

• What are characteristics of the Developing

World?

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TW 05 (Makeup- 03)
• Classic Theories of Economic Development
• Linear stages of growth model
• Rostow's stages of growth

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TW 06

• What is Harrod-Domar Growth Model?

• The Lewis Development Model

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TW 07
. The Chenery model (patterns of development analysis)
The international dependence revolution theories
a. Neocolonial dependence model
b. The false paradigm model
c. The dualistic development thesis
The neoclassical free market counterrevolution theories
a. (challenging the statist model)
b. Free market approach
c. Public choice approach
d. Market friendly approach
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TW 08

• Underdevelopment as Coordination Failure

• Technological Transfer for Modernization
• The Big Bush to Industrialization
• The O-Ring Theory of Economic Development

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TW 09
• Measuring Inequality
• Measuring Absolute Poverty
• Economic Characteristics of High-Poverty
Groups
• Policies of Income Distribution and Reduce
Poverty
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TW 10
• World Population
• Population Pyramid
• Hidden Momentum of Population Growth
• The Demographic Transition
• The Malthusian Trap
• Microeconomic Theory of Fertility
• Policies of Fertility Reduction
• Consequences of High Fertility
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TW 11
• Urbanization and Development
• Urbanization Trend
• Rural-Urban Migration
• Urban Informal sector
• Developing Urban Informal Sector
• Women in Urban Informal Sector
• Todaro’s R-U Migration Model
• Policies Inducing R-U Migration
• Policies Reducing R-U Migration

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TW 12
• Development & Human Capital
• Determinants of Education Demand
• Return of Investment in Education
• The Education Gender Gap
• Social vs. Private Returns of Education

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 Exam?

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Two Possibilities
• On-line
• Offline (on campus)

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 On-line
-It’s like a coursework
DATE SET: 05 January 2021
SUBMISSION DATE: 06 January 2021
TIME ALLOWED FOR EXAM: 02 DAYS
(from 23:59h 04/01 to 23:59h 06/01)

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On-line

There is no late submission on this assessment,

failure to submit on time will cause zero [0] for
the assessment component.

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On-line
• Total Parts:
2 (Part A & B)
• Total Questions:
6 Questions
• Total Marks:
100
• Exam weightage:
50%
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On-line
• PART A:
Answer ALL questions. Each question requires a short
answer. You should not use more than 1 page to answer
each question.
• PART B:
Answer ONE out of the following TWO questions. This
question requires a long answer and is worth 20 marks.
You should not use more than 2 pages to answer the
question.
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On-line
• PART A:
• Total Questions:
5 Questions
• Total Marks:
80

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On-line
• What kind of question will be?

I will ask any direct question. All questions will

be open book, and open ended. You have to
write your own and avoid plagiarism.
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On-line

• How is open ended questions?

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On-line (Just Example)
• Sample Question?
• According to ILO (2019),
Uzbekistan’s labour productivity is less
than Kazakhstan and Turkmenistan.
A- Why Uzbekistan’s labour productivity
is less? What are the main reason?
B- How Uzbekistan take the measure to
accelerate it?

(All question will be from my lectures,

and we discuss in the class)- During your
preparation you have to think at
Uzbekistan level.

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• Offline (on campus)

DATE SET: 05 January 2021

• TIME ALLOWED FOR EXAM:
from 14:00h to 17:00h

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Offline
• PART A:
Answer ALL questions. Each question requires a short
answer. You should not use more than 1 page to answer
each question.
• PART B:
Answer ONE out of the following TWO questions. This
question requires a long answer and is worth 20 marks.
You should not use more than 2 pages to answer the
question.
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Offline
• PART A:
• Total Questions:
6 Questions
• Total Marks:
80

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Offline

• What kind of question will be?

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• Most questions are direct and general.
- What are core values of development?
- What are objectives of development?
- What is Harrod-Domar Growth Model?
- The O-Ring Theory of Economic
Development.
- Can be an issue or problem at general (global level not
at Uzbekistan level)
- [Whatever I will ask, we discussed in the class]
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• PART B:
Answer ONE out of the following TWO
questions. This question requires a long answer
and is worth 20 marks. You should not use
more than 2 pages to answer the question.
-----------------------Tomorrow----------------------------
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 Email: mjaved@wiut.uz
rachidjaved@gmail.com
@rachidjaved

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