UNIVERSITY OF MINDANAO

Tagum College

Department of Accounting Education

Accountancy Program

Physically Distanced but Academically Engaged

Self-Instructional Manual (SIM) for Self-Directed Learning (SDL)

Course/Subject: CBM 122 – Economic Development

Name of Teacher: Rex Lord V. Ranalan

THIS SIM/SDL MANUAL IS A DRAFT VERSION ONLY; NOT FOR

REPRODUCTION AND DISTRIBUTION OUTSIDE OF ITS INTENDED USE.
THIS IS INTENDED ONLY FOR THE USE OF THE STUDENTS WHO ARE
OFFICIALLY ENROLLED IN THE COURSE/SUBJECT.
EXPECT REVISIONS OF THE MANUAL.
 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

Course Outline: CBM 122 – Economic Development

Course Coordinators : Rex Lord V. Ranalan

Email : rranalan@yahoo.com
Student Consultation : by appointment
Mobile Number : 09978090043
Phone Number : (084) 655 9591 Local 116
Date of Effectivity : June 2021
Mode of Delivery : Online Blended Delivery
Time Frame : 54 Hours
Student Workload : Expected Self-Directed Learning
Requisites : None
Credit : 3-unit Lecture
Attendance Requirements : Minimum of 95% attendance in all scheduled
virtual or face to face sessions and the Learning
Management System (LMS)

Course Outline Policy

Areas of Concern Details

Contact and Non- This 3-unit course self-instructional manual is designed

contact Hours for blended learning mode of instructional delivery with
scheduled face to face or virtual sessions. The
expected number of hours will be 54, including the face
to face or virtual meetings. A Learning Management
System (LMS), Quipper, will be used to facilitate your
learning. Other sessions may also be conducted
through online communication channels such as
Facebook, Messenger, WhatsApp, Viber, E-mail, Line,
Zoom, Skype, or any other similar applications. You
may also contact the course coordinator through a
mobile number or telephone.

Assessment Task Submission of assessment tasks shall be on the 2nd, 4th,

Submission and 6th week of the summer. The assessment paper
shall be attached with a cover page indicating the title
of the assessment task (if the task is a performance),
the name of the course coordinator, date of submission,
and the name of the student. The document should be
e-mailed to the course coordinator. It is also expected

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

that you already paid your tuition and other fees before
the submission of the assessment task.

If the assessment task is done in real-time through the

features in the Learning Management System, the
schedule shall be arranged ahead of time by the course
coordinator.

Turnitin submission To ensure honesty and authenticity, all assessment

tasks are required to be submitted through Turnitin
(if necessary) with a maximum similarity index of 30% allowed. This
means that if your paper goes beyond 30%, the
students will either opt to redo her/his paper or explain
in writing addressed to the course coordinator the
reasons for the similarity. Also, if the document has
reached a more than 30% similarity index, the student
may be called for disciplinary action following the
University’s OPM on Intellectual and Academic
Honesty.

Please note that academic dishonesty such as cheating

and commissioning other students or people to
complete the task for you have severe punishments
(reprimand, warning, expulsion).

Penalties for Late The score for an assessment item submitted after the
Assignments / designated time on the due date, without an approved
Assessments extension of time, will be reduced by 5% of the possible
maximum score for that assessment item for each day
that the assessment item is late.

However, if the late submission of the assessment

paper has a valid reason, a letter of explanation should
be submitted and approved by the course coordinator.
If necessary, you will also be required to present/attach
pieces of evidence.

Return of Assignments / Assessment tasks will be returned to you within two (2)
Assessments weeks after the submission. This will be returned
through e-mail or via the Quipper.

For group assessment tasks, the course coordinator

will require some or few of the students for online or
virtual sessions to ask clarificatory questions to validate

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

the originality of the assessment task submitted and to

ensure that all the group members are involved.

Assignment You should request in writing addressed to the course

Resubmission coordinator your intention to resubmit an assessment
task. The resubmission is premised on the student’s
failure to comply with the similarity index and other
reasonable grounds such as academic literacy three (3)
standards or other reasonable circumstances, e.g.,
illness, accident financial constraints.

Re-marking of You should request in writing addressed to the course

Assessment Papers coordinator your intention to appeal or contest the score
and Appeal given to an assessment task. The letter should explicitly
explain the reasons/points to contest the grade. The
course coordinator shall communicate with you on the
approval and disapproval of the request.

If disapproved by the course coordinator, you can

elevate your case to the program head or the dean with
the original letter of request. The final decision will come
from the dean of the college.

Grading System Your grades will be based on the following:

Examinations
Prelim 15%
Midterm 15%
Final 30% = 60%
Class Participations = 40%
Total = 100%

Submission of the final grades shall follow the usual

University system and procedures.

Preferred Referencing Use the general practice of the APA 6th Edition.
Style

Student Communication You are required to have an e-mail account, which is a

requirement to access the LMS portal. Then, the course
coordinator shall enroll the students to have access to
the materials and resources of the course.

3
 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

You may call or send SMS to your course coordinator

through his/her phone number. Online communication
channels, such as those stated above, may be used.

You can also meet the course coordinator in person

through the scheduled face to face sessions to raise
your issues and concerns.

Contact Details of the Dr. Gina Fe G. Israel

Dean Dean of College
E-mail: deansofficetagum@umindanao.edu.ph
Phone: 09158325092 / 09099942314

Larcyneil P. Pascual, MAED

Assistant Dean
E-mail: larcyneil_pascual@umindanao.edu.ph
Phone: 0975 0517 851
Contact Details of the Mary Cris L. Luzada, CPA, MSA
Program Head Email: regiaaron@yahoo.com
Mobile: 09228321794
Students with Special Students with special needs shall communicate with the
Needs course coordinator about the nature of his or her special
needs. Depending on the nature of the need, the course
coordinator with the approval of the program head may
provide alternative assessment tasks or extension of
the deadline for submission of assessment tasks.
However, the alternative assessment tasks should still
be in the service of achieving the desired course
learning outcomes.

Library Contact Details Clarissa R. Donayre, MSLS

E-mail:lictagum@umindanao.edu.ph
Phone: 0927 395 1639
Well-being Welfare Rochen D. Yntig, RGC
Support Help Desk GSTC Head
Contact Details E-mail: chenny.yntig@gmail.com
Phone: 0932 771 7219

Mersun Faith A. Delco, RPm

Psychometrician
E-mail: mersunfaithdelco@gmail.com
Phone: 0927 608 6037

Alfred Joshua M. Navarro

Facilitator
E-mail: is40fotb@gmail.com

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

Phone: 0977 341 6064

Course Information – See or download the course syllabus in Quipper

CC’s Voice : Hello there! Good day! Welcome to this course CBM 122: Economic
Development. After learning basic economic concept during your
Applied Economics course, this time we are going to explore
fundamental concept of development economics. This course will give
insights in understanding why some countries have been able to go
through a process of economic and human development while others
have languished. As such you will also encounter terms that are
practical in everyday activities that would add information to fully
understand the nature of development aspect of a country.

CO : As a student of this course you are expected to:

1. Understand the nature of economic development and its related
concepts and determine theories that would facilitate in diagnosing
the root causes of economic development; and
2. Explain government policies (both local and international) and
describe how they can be pursued in addressing economic
problems that hinders the development of a country like population,
health and education.

Let us begin!

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

BIG PICTURE A
Week 1-2: Unit Learning Outcomes (ULO): At the end of the unit, you are expected
to:
a. Discuss the nature of Economic Development;
b. Identify different measures of development in classifying economies; and
c. Differentiate classical theories of economic development.

Big Picture in Focus: ULOa. Discuss the nature of Economic Development.

Metalanguage
The following are terms to be remembered as we go through in studying this
unit. Please refer to these definitions as supplement in case you will encounter
difficulty in understanding the concept of economic development.
1. Absolute Poverty. A situation of being unable to meet the minimum levels
of income, food, clothing, health care, shelter, and other essentials.
2. Capabilities. The freedoms that people have, given their personal features
and their command over commodities.
3. Developing Countries. Countries that are presently characterized by low
levels of living and other development deficits. Used in the development
literature as a synonym for less developed countries.
4. Development. The process of improving the quality of all human lives and
capabilities by raising people’s levels of living, self-esteem, and freedom.
5. Freedom. A situation in which a society has at its disposal a variety of
alternatives from which to satisfy its wants and individuals enjoy real choices
according to their preferences.
6. Functionings. What people do or can do with the commodities of given
characteristics that they come to possess or control.
7. Gross Domestic Product (GDP). The total final output of goods and
services produced by the country’s economy, within the country’s territory,
by residents and nonresidents, regardless of its allocation between
domestic and foreign claims.
8. Gross National Income (GNI). The total domestic and foreign output
claimed by residents of a country. It comprises gross domestic product

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

(GDP) plus factor incomes accruing to residents from abroad, less the
income earned in the domestic economy accruing to persons abroad.
9. Self-esteem. The feeling of worthiness that a society enjoys when its social,
political, and economic systems and institutions promote human values
such as respect, dignity, integrity, and self-determination.
10. Social System. The organizational and institutional structure of a society,
including its values, attitudes, power structure, and traditions.
11. Subsistence Economy. An economy in which production is mainly for
personal consumption and the standard of living yields little more than basic
necessities of life—food, shelter, and clothing.
12. Sustenance. The basic goods and services, such as food, clothing, and
shelter, that are necessary to sustain an average human being at the bare
minimum level of living.

Essential Knowledge
This unit will highlight basic concept of development economics. This will
discuss the emergence of economic development with view from traditional, modern
and Sen’s approach. This will also discuss the core values and objectives as well as
the MDGs and SDGs. Please note that you are not limited to exclusively refer to these
resources. Thus, you are expected to utilize other books, research articles and other
resources that are available in the university’s library e.g.ebrary, search.proquest.com
etc., and even online tutorial websites.

1. Economics, Political Economics and Development Economics

The study of economic development is one of the newest, most exciting,
and most challenging branches of the broader disciplines of economics and
political economy. Although development economics often draws on relevant
principles and concepts from other branches of economics in either a standard or
modified form, for the most part it is a field of study that is rapidly evolving its own
distinctive analytical and methodological identity. But what makes development
economics distinct to Economics and Political Economics? The answer to this lies
on the scope of each discipline. Traditional Economics is concerned primarily
with the efficient, least-cost allocation of scarce productive resources and with the
optimal growth of these resources over time so as to produce an ever-expanding
range of goods and services. Traditional neoclassical economics deals with an
advanced capitalist world of perfect markets; consumer sovereignty; automatic
price adjustments; decisions made on the basis of marginal, private-profit, and
utility calculations; and equilibrium outcomes in all product and resource markets.
It assumes economic “rationality” and a purely materialistic, individualistic, self-
interested orientation toward economic decision making
On the other hand, Political Economy goes beyond traditional economics
to study, among other things, the social and institutional processes through which
certain groups of economic and political elites influence the allocation of scarce
productive resources now and in the future, either for their own benefit exclusively
or for that of the larger population as well. Political economy is therefore concerned

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

with the relationship between politics and economics, with a special emphasis on
the role of power in economic decision making.
Setting the focus of Economics and Political Economy, Development
Economics has an even greater scope. In addition to being concerned with the
efficient allocation of existing scarce (or idle) productive resources and with their
sustained growth over time, it also deal with the economic, social, political, and
institutional mechanisms, both public and private, necessary to bring about rapid
(at least by historical standards) and large-scale improvements in levels of living
for the peoples of Africa, Asia, Latin America, and the formerly socialist transition
economies. It focuses on the mechanisms that keep families, regions, and even
entire nations in poverty traps, in which past poverty causes future poverty, and on
the most effective strategies for breaking out of these traps. Transforming the
economy are usually viewed as essential components of development economics
with the ultimate purpose of understanding developing economies in order to help
improve the material lives of the majority of the global population. Development
economics must be eclectic, attempting to combine relevant concepts and theories
from traditional economic analysis with new models and broader multidisciplinary
approaches derived from studying the historical and contemporary development
experience of Africa, Asia, and Latin America.

2. What is Development?
The term development may mean different things to different people. Thus,
it is important that we have common core perspective on its meaning. This will help
us in understanding how development is being measured among countries. There
are different views about this concept of which among are as follows:
a. Traditional View
Development has traditionally meant as achieving sustained rates of
growth of income per capita to enable a nation to expand its output at a rate
faster than the growth rate of its population. Levels and rates of growth of
“real” per capita gross national income (GNI) are then used to measure the
overall economic well-being of a population—how much of real goods and
services is available to the average citizen for consumption and investment.
The emphasis is often on increased output, measured by gross domestic
product (GDP) by which problems of poverty, discrimination,
unemployment, and income distribution were of secondary importance.
b. New Economic View
An increasing number of economists and policymakers clamored for
more direct attacks on widespread absolute poverty, increasingly
inequitable income distributions, and rising unemployment paved way in
redefining economic development in terms of the reduction or elimination of
poverty, inequality, and unemployment within the context of a growing
economy. “Redistribution from growth” became a common slogan.
Development in this view is conceived as a multidimensional process
involving major changes in social structures, popular attitudes, and national
institutions, as well as the acceleration of economic growth, the reduction of
inequality, and the eradication of poverty. Development now represent the
whole gamut of change by which an entire social system, tuned to the
diverse basic needs and evolving aspirations of individuals and social

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

groups within that system, moves away from a condition of life widely
perceived as unsatisfactory toward a situation or condition of life regarded
as materially and spiritually better.
c. The Capability Approach View
Amartya Sen’s capability approach is a moral framework which proposes
that social arrangements should be evaluated primarily according to the
extent of freedom people have to promote as well as achieving functions
they value (Centeno – CMI Business School, n.d.) Capabilities are the
doings and beings that people can achieve if they so choose, such as being
well-nourished, getting married, being educated, and travelling (Robyns &
Mortens, 2020). Sen argues that poverty cannot be properly measured by
income or even by utility as conventionally understood; what matters
fundamentally is not the things a person has—or the feelings these
provide—but what a person is, or can be, and does, or can do. What matters
for well-being is not just the characteristics of commodities consumed but
what use the consumer can and does make of commodities. Thus, looking
at real income levels or even the levels of consumption of specific
commodities cannot suffice as a measure of well-being. One may have a lot
of commodities, but these are of little value if they are not what consumers
desire. One may have income, but certain commodities essential for well-
being, such as nutritious foods, may be unavailable. As Sen stresses, a
person’s own valuation of what kind of life would be worthwhile is not
necessarily the same as what gives pleasure to that person. For Sen,
human “well-being” means being well, in the basic sense of being healthy,
well nourished, well clothed, literate, and long-lived, and more broadly,
being able to take part in the life of the community, being mobile, and having
freedom of choice in what one can become and can do.

3. Core Values of Development

There are at least three basic components or core values serve as a
conceptual basis and practical guideline for understanding the inner meaning of
development. These core values—sustenance, self-esteem, and freedom—
represent common goals sought by all individuals and societies. They relate to
fundamental human needs that find their expression in almost all societies and
cultures at all times. Let us therefore examine each in turn.
a. Sustenance: The Ability to Meet Basic Needs. All people have certain
basic needs without which life would be impossible. These life-sustaining
basic human needs include food, shelter, health, and protection. When any
of these is absent or in critically short supply, a condition of “absolute
underdevelopment” exists. A basic function of all economic activity,
therefore, is to provide as many people as possible with the means of
overcoming the helplessness and misery arising from a lack of food, shelter,
health, and protection. To this extent, we may claim that economic
development is a necessary condition for the improvement in the quality of
life that is development. Without sustained and continuous economic
progress at the individual as well as the societal level, the realization of the
human potential would not be possible. One clearly has to “have enough in
order to be more.” Rising per capita incomes, the elimination of absolute

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

poverty, greater employment opportunities, and lessening income

inequalities therefore constitute the necessary but not the sufficient
conditions for development.
b. Self-Esteem: To Be a Person. A second universal component of the good
life is self-esteem—a sense of worth and self-respect, of not being used as
a tool by others for their own ends. All peoples and societies seek some
basic form of self-esteem, although they may call it authenticity, identity,
dignity, respect, honor, or recognition. The nature and form of this self-
esteem may vary from society to society and from culture to culture.
However, with the proliferation of the “modernizing values” of developed
nations, many societies in developing countries that have had a profound
sense of their own worth suffer from serious cultural confusion when they
come in contact with economically and technologically advanced societies.
This is because national prosperity has become an almost universal
measure of worth. Due to the significance attached to material values in
developed nations, worthiness and esteem are nowadays increasingly
conferred only on countries that possess economic wealth and
technological power—those that have “developed.”
c. Freedom from Servitude: To Be Able to Choose. A third and final
universal value that we suggest should constitute the meaning of
development is the concept of human freedom. Freedom here is to be
understood in the sense of emancipation from alienating material conditions
of life and from social servitude to nature, other people, misery, oppressive
institutions, and dogmatic beliefs, especially that poverty is predestination.
Freedom involves an expanded range of choices for societies and their
members together with a minimization of external constraints in the pursuit
of some social goal we call development.

4. Objectives of Development
We may conclude that development is both a physical reality and a state of
mind in which society has, through some combination of social, economic, and
institutional processes, secured the means for obtaining a better life. Whatever the
specific components of this better life, development in all societies must have at
least the following three objectives:
a. To increase the availability and widen the distribution of basic life-sustaining
goods such as food, shelter, health, and protection;
b. To raise levels of living, including, in addition to higher incomes, the
provision of more jobs, better education, and greater attention to cultural
and human values, all of which will serve not only to enhance material
wellbeing but also to generate greater individual and national self-esteem;
and
c. To expand the range of economic and social choices available to individuals
and nations by freeing them from servitude and dependence, not only in
relation to other people and nation-states, but also to the forces of ignorance
and human misery

5. The Millennium Development Goals (MDGs) and Sustainable Development

Goals (SDGs)

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

A. MDGs
The United Nations (UN) Millennium Development Goals are eight
goals that all 191 UN member states have agreed to try to achieve by the
year 2015. The United Nations Millennium Declaration, signed in September
2000 commits world leaders to combat poverty, hunger, disease, illiteracy,
environmental degradation, and discrimination against women. The MDGs
are derived from this Declaration, and all have specific targets and
indicators.

“Yet the job is unfinished for millions of people—we need to go the last mile
on ending hunger, achieving full gender equality, improving health services
and getting every child into school. Now we must shift the world onto a
sustainable path.”- UNDP

B. SDGs
The SDGs replace the Millennium Development Goals (MDGs), which
started a global effort in 2000 to tackle the indignity of poverty. The legacy
and achievements of the MDGs provide us with valuable lessons and
experience to begin work on the new goals. But for millions of people around
the world the job remains unfinished. The SDGs are also an urgent call to
shift the world onto a more sustainable path. The Sustainable Development
Goals are the blueprint to achieve a better and more sustainable future for
all. They address the global challenges we face, including those related to
poverty, inequality, climate, environmental degradation, prosperity,
and peace and justice. The Goals interconnect and in order to leave no
one behind, it is important that we achieve each Goal and target by 2030.

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

Self Help: You can also refer to the sources below to help you further
understand the lesson:

Todaro, M.P., & Smith, S.C. (2015). Economic Development (12th Ed.). Jurong,
Singapore: Pearson Education South Asia Pte Ltd. (Main source where
lessons are lifted from)

Nafziger, E.W. (2015). Economic Development (5th Ed.). United States of America:
Sheridan Books, Inc

Robeyns, I. & Morten, F.B. (2020). The Capability Approach (Winter Edition). The
Stanford Encyclopedia of Philosophy : URL =
<https://plato.stanford.edu/archives/win2020/entries/capability-approach/>.

Let’s Check
Let us try the following activities to check your understanding in this unit.

12
 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

Activity 1. Identification. In the space provided, write the term/s being asked in the
following statements. (One point each)

1. Replaces the Millennium Development Goals (MDGs), which

started a global effort in 2000 to tackle the indignity of poverty.
2. Involves an expanded range of choices for societies and their
members together with a minimization of external constraints in the pursuit of some
social goal we call development.
3. Is concerned primarily with the efficient, least-cost allocation of
scarce productive resources and with the optimal growth of these resources over time
so as to produce an ever-expanding range of goods and services.
4. Refers to what people do or can do with the commodities of
given characteristics that they come to possess or control.
5. Refers to the organizational and institutional structure of a
society, including its values, attitudes, power structure, and traditions.

Let’s Analyze

Let us try the following activity to know how deep your understanding on the
topics in this unit.

Research Presentation. The class will be divided into five groups and each group
will be assigned a topic in relation to the lessons discussed. Set of topics for
presentation are as follows:
I. Role of Women in Development
II. Development and Happiness
III. Role of Values in Development Economics
IV. Development and Freedom
V. Current Status of SDGs and the Philippines Stance.

Each group will undergo research of the above topics and present it in the class.
Rubric for the written report and oral presentation are as follows:

For Written Report:

Organization 5 pts
Content 10 pts

For Oral Presentation

Brevity 5 pts
Delivery 10 pts
PPT 5
Total Points: 35 pts.
In a Nutshell
In this part you are going to jot down what you have learned in this unit. The
said statement of yours could be in a form of concluding statements, arguments, or
perspective you have drawn from this lesson. The first two items is done for you.

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

1. Development economics is a distinct yet very important extension of both

traditional economics and political economy. While necessarily also concerned
with efficient resource allocation and the steady growth of aggregate output over
time, development economics focuses primarily on the economic, social, and
institutional mechanisms needed to bring about rapid and large-scale
improvements in standards of living for the masses of poor people in developing
nations

Now it’s your turn!

2.

3.

4.

Q&A List
You are free to list down all the emerging questions or issues in the provided
spaces below. These questions or concerns may also be raised in the LMS or other

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 DEPARTMENT OF ACCOUNTING EDUCATION
Accountancy Program
Mabini Street, Tagum City
Davao del Norte
Telefax: (084)655-9591 Local 116

modes. You may answer these questions on your own after clarification. The Q&A
portion helps in the review of concepts and essential knowledge.

Questions/Issues Answers

1.

2.

3.

4.

5.

Keywords Index
Absolute Poverty
Capabilities
Developing Countries
Development
Development Economics
Freedom
Functionings
Gross Domestic Product (GDP)
Gross National Income (GNI)
Millennium Development Goals (MDG's)
Political Economy
Self-Esteem
Social System
Subsistence Economy
Sustainable Development Goals (SDG's)
Sustenance
Traditional economics

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