UNIVERSITY OF MINDANAO

College of Business Administration Education

Business Economics

Physically Distanced but Academically Engaged

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

Course/Subject: CBM 122 Economic Development

Name of Teacher: Natividad Dulce David Madrazo

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.

1
 TABLE OF CONTENTS

I. QUALITY ASSURANCE POLICIES ………………………………….. 3

II. INSTRUCTION PROPER ……………………………………………… 7

Week 1-3 Introduction To Economic Development ……………….... 7

Big Picture / Unit Learning Outcome ………………………………….. 7
Metalanguage ……………………………………………………………. 7
Essential Knowledge ……………………………………………………. 9
Let’s Check ………………………………………………………………. 10
Let’s Analyze …………………………………………………………….. 11
In a Nutshell ……………………………………………………………… 14

Week 4-5 Various Theories On Economic Development …………... 16

Big Picture / Unit Learning Outcome ……………………………………16
Metalanguage ………………………………………………………….….16
Essential Knowledge ……………………………………………………..19
Let’s Check ……………………………………………………………….. 20
Let’s Analyze ……………………………………………………………... 21
In a Nutshell ………………………………………………………………. 23

Week 6-7 Measuring Income Inequality And Absolute Poverty ……. 25

Big Picture / Unit Learning Outcome …………………………………… 25
Metalanguage ………………………………………………………….…. 25
Essential Knowledge …………………………………………………….. 27
Let’s Check ……………………………………………………………….. 28
Let’s Analyze ……………………………………………………………... 30
In a Nutshell ………………………………………………………………. 33

Week 8-9 Economic Development And Population, Urbanization,

Human Capital, Agriculture, Environment, International Trade …………. 35
Big Picture / Unit Learning Outcome …………………………………… 35
Metalanguage ………………………………………………………….…. 35
Essential Knowledge …………………………………………………….. 36
Let’s Analyze ……………………………………………………………... 38
In a Nutshell ………………………………………………………………. 44

2
 Course Outline: CBM 122 – Economic Development
Course Coordinator:
Email:
Student Consultation:
Mobile:
Phone:
Effectivity Date:
Mode of Delivery:
Time Frame:
Student Workload:
Requisites:
Credit:
Attendance Requirements:
Course Outline Policy
Areas of Concern
Contact and Non-contact Hours
Assessment Task Submission
Natividad Dulce David Madrazo, MM
nmadrazo@umindanao.edu.ph
By LMS, email
(082) 227-5456 Local 131
May 2020
Blended (Onliine with face-to-face or virtual sessions)
54 Hours
Expected Self-Directed Learning
BE 221
3
A minimum of 95% attendance is required at all
scheduled virtual or face-to-face sessions.
Details
This 3-unit course self-instructional manual is designed
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 sessions. The face-to-face sessions
shall include the summative assessment tasks or
exams.
Submission of assessment tasks shall be on 3rd, 5th, 7th
and 9th week of the term and emailed to the course
coordinator indicating the:
- name of the student (SURNAME first please)
- class hour
- assessment task module number
- date of submission
You are expected to have 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 Blackboard Learning Management
System, the schedule shall be arranged ahead of time
by the course coordinator.
3
 You are required to take the Multiple Choice Question
exam inside the University and this is non-negotiable.
This should be scheduled ahead of time by the course
coordinator.

Turnitin Submission To ensure honesty and authenticity, all assessment

(if necessary) tasks are required to be submitted through Turnitin
with a maximum similarity index allowance of 30%.
This means that if the paper goes beyond 30%, you will
either opt to redo the paper or explain in writing
addressed to the course coordinator the reasons for
the similarity. In addition, if the paper has reached
more than 30% similarity index, you may be called for a
disciplinary action in accordance with 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 will be penalized ranging from
reprimand, warning, expulsion.

Penalties for Late The score for an assessment task submitted after the
Assignments/Assessments designated time or the due date, without an approved
extension of time, will be reduced by 50% of the
possible maximum score for said assessment.

However, if the late submission of 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
evidences.

Return of Assignments/ Assessment tasks will be returned to you two (2) weeks
Assessments after the submission. This will be returned by email or
via Blackboard portal.

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 the
originality of the assessment task submitted and to
ensure that all the group members are involved.
Assignment Resubmission You should request in writing addressed to the course
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

4

Re-marking of Assessment
Papers and Appeal
Grading System
Preferred Referencing Style
Student Communication
standards or other reasonable circumstances like
illness, accidents, financial constraints.
You should request in writing addressed to the course
coordinator your intention to appeal or contest the score
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 or disapproval of the request.
If the request is disapproved, 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.
All culled from BlackBoard sessions and traditional
contact
Course discussions/exercises – 30%
1st formative assessment – 10%
2nd formative assessment – 10%
3rd formative assessment – 10%
All culled from on-campus/onsite sessions (TBA):
Final exam – 40%
Submission of the final grades shall follow the usual
University system and procedures.
APA 6th Edition.
You are required to create a umindanao email account
which is a requirement to access the BlackBoard
portal. Then, the course coordinator shall enroll the
students to have access to the materials and resources
of the course. All communication formats: chat,
submission of assessment tasks, requests, others shall
be through the portal and other university recognized
platforms.
You can also meet the course coordinator in person
through the scheduled face-to-face sessions to
raise your issues and concerns.
For students who have not created their student email,
please contact the course coordinator or program head.
5

Contact Details of the Dean
Contact Details of the Program
Head
Students with Special Needs
Online Tutorial Registration
Library Contact Details
Well-being Welfare Support Help
Desk Contact Details
Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131
Vicente Salvador E. Montaño, DBA
Email: vicente_montano@umindanao.edu.ph
Phone: 082-227-5456 Local 131
Claudio A. Bisares, MSE
Email: cbisares@umindanao.edu.ph
Phone: 082-227-5456 Local 131
Students with special needs shall communicate with the
course coordinator about the nature of said 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 of submission of assessment
tasks. However, the alternative assessment tasks
should still be in the service of achieving the desired
course learning outcomes.
Brigida E. Bacani Head – LIC
Phone: (082) 300 – 5456
Hotline No. 0951 376 6681
library@umindanao.edu.ph
Dra. Ronadora E. Deala – Head - GSTC
Email: ronadora_deala@umindanao.edu.ph
Phone: (082)300-5456
GSTC Facilitator: Rhoda Neileen P. Luayon
Email: gstcmain@umindanao.edu.ph
P a g e 6 | 15
 College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

MODULE 1 – INTRODUCTION TO ECONOMIC DEVELOPMENT (Weeks 1 – 3)

Unit Learning Outcome: At the end of the unit, you are expected to:

1. Differentiate economic development from traditional economics through the

different values, objectives and measures used
2. Identify the importance of values in economic development
3. Discover the role of women
4. Contrast/compare characteristics of developing and developed nations

CF’s Voice: Hello future Business Economists and Leaders! Welcome to our course CBM
122 – Economic Development. Surely, by this time you are firm in your decision to pursue
your future career in Economics thus it is imperative to broaden your learning.

CO: To competently analyze the causes of underdevelopment among developing nations

(ULO 1), you have to be familiar with the various measures employed by economists to
determine whether a country is moving towards development.

LET’S PROCEED!

METALANGUAGE

This section relates to the more essential terms needed for you to understand this unit. To
demonstrate the ULO 1, you will refer to the following definitions should you have some
queries along the way.

1. Absolute poverty The situation of being unable or only barely able to meet the
subsistence essentials of food, clothing, shelter, and basic health care.

2. Crude birth rate The number of children born alive each year per 1,000 population.

3. Dependency burden The proportion of the total population aged 0 to 15 and 65+,
which is considered economically unproductive and therefore not counted in the
labor force.

4. Development economics The study of how economies are transformed from

stagnation to growth and from low- income to high-income status, and overcome
problems of absolute poverty.

5. Development The process of improving the quality of all human lives and capabilities
by raising people’s levels of living, self-esteem, and freedom.

6. Fractionalization Significant ethnic, linguistic, and other social divisions within a

Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 7 | 15
 College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

country.

7. 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.

8. 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.

9. Gross national income (GNI) The total domestic and foreign output claimed by
residents of a country.

10. Human capital Productive investments in people, such as skills, values, and health
resulting from expenditures on education, on-the-job training programs, and medical
care.

11. Income inequality The disproportionate distribution of total national income among
households.

12. Income per capita Total gross national income of a country divided by its total
population.

13. Infrastructure Facilities that enable economic activity and markets, such as
transportation, communication and distribution networks, utilities, water, sewer, and
energy supply systems.

14. Less developed countries A synonym for developing countries.

15. Poverty trap A bad equilibrium for a family, community, or nation, involving a vicious
circle in which poverty and underdevelopment lead to more poverty and
underdevelopment, often from one generation to the next.

16. Resource endowment A nation’s supply of usable factors of production, including

mineral deposits, raw materials, and labor.

17. Rural-urban migration The movement of people from rural villages, towns, and
farms to urban centers (cities) in search of jobs.

18. 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.

19. Sustenance The basic goods and services, such as food, clothing, and shelter, that is
necessary to sustain an average human being at the bare minimum level of living.
Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 8 | 15
 College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

20. Traditional economics An approach to economics that emphasizes utility, profit

maximization, market efficiency, and determination of equilibrium.

The key words in this module include traditional economics, development economics,
development, poverty, developing country, income inequality.

ESSENTIAL KNOWLEDGE

To perform the aforesaid big picture (unit learning outcome) for the first three (3) weeks of
the course, you need to fully understand the following essential knowledge that will be laid
down in the succeeding pages. Please note that on top of the resources below, 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, others.

Using the e-book on Economic Development by Todaro and Smith, please read on Chapter
1, page 9 The Nature of Development Economics that will relate the difference between
traditional economics and economic development. Here, it expounds the more specific
areas that will be studied in economic development.

Is the study of Economics value-free? Do national decision makers design economic policies
by solely employing objective empirical analysis and devoid of normative value judgments?
You can explore on this in page 14.

“Because the term development may mean different things to different people, it is
important that we have some working definition or core perspective on its meaning.” as you
read in page 16. The authors have outlined two different ways of measuring development,
that is traditionally and the new view. Moreover, they continue to discuss the core values of
development with their corresponding objectives.

What is the role of women in the economic growth of a nation? Do they contribute anything
at all? Find it out in page 24.

In Chapter 2, you will be introduced to the ten (10) important features that developing
nations have in common with developed countries. The features are very well explained in
pages 57 to 73. These are:

1. Lower levels of living and productivity

2. Lower levels of human capital

3. Higher levels of inequality and absolute poverty

4. Higher population growth rates

5. Greater social fractionalization

Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 9 | 15
 College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

6. Larger rural populations but rapid rural-to-urban migration

7. Lower levels of industrialization

8. Adverse geography

9. Underdeveloped financial and other markets

10. Lingering colonial impacts such as poor institutions and often external dependence.

Finally, this section ends with how developed nations were when they initially embarked on
development against the developing countries now. There are eight (8) significant
differences, which you can read in pages 73-80 as follows:

1. Physical and human resource endowments


2. Per capita incomes and levels of GDP in relation to the rest of the world

3. Climate


4. Population size, distribution, and growth

5. Historical role of international migration

6. International trade benefits

7. Basic scientific and technological research and development capabilities

8. Efficacy of domestic institutions

LET’S CHECK

1. Give the different ways of measuring development, in the traditional and in the new
way.

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2. Enumerate and expound the core values of development.

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Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 10 | 15
 College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

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3. What will be the contribution of women in economic growth?

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LET’S ANALYZE

1. How is the difference between traditional economics and development economics?

Expound your answer.

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2. Will the values of the people affect the economic policies that will be crafted by the
policy decision makers? Explain your answer.

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Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 11 | 15
 College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

3. Discuss the common characteristics between developed and developing nations.

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Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 12 | 15
 College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

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4. Discuss the differences of developing countries to developed nations in their early

stages of development.

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Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 13 | 15
 College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

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IN A NUTSHELL

Activity 1: Development of a nation has indeed evolved from the old basis of performance
in per capita income of a country to levels of living of people in terms of poverty,
employment, and equality in income distribution.

I have listed below lessons learned and arguments from this unit. You have to list your own
too.
1. Geography of the developing country contributes to its development. However, for
the authors Todaro and Smith to state that developing countries now are
“adversely’’ located in the globe thus development is slow. It makes me think that
simply because most developed nations are in the upper part of the equator does
not mean that developing nations are adversely located. In addition, these words
‘’adverse geography’’ connotes that God made a mistake in putting countries below
the equator.
2. Most colonizers are developed countries. The Philippines is one of those colonized
and our colonizers have surely left legacies to the populace where some of them can
be retained while others should be done away with. These legacies do affect how
we perform in the development policies of our republic.
Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 14 | 15
 College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

YOUR TURN
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END OF MODULE 1

Reference: Todaro, Michael P. & Smith, Stephen C. (2015). Economic Development (12th ed.).
New York University, New York: Pearson

Course : CBM 122 Economic Development

Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 15 | 15