Professional Documents
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◼ Key Concepts
It is easy to forget that students (especially in rich countries) may have a limited understanding of how life
in the developing world differs from life in the developed world. The first main point of Chapter 1 is to
drive this idea home, while also introducing through examples of debt crises and oil shocks, the idea that
the world is becoming increasingly interdependent and that actions taken in the developed world can have
a profound impact, for better or worse, on the developing world.
The second point is to provide an overview of the nature of development economics as a field. A defense
of development economics as a distinct field, rather than an agglomeration of other economics subfields, is
offered. A major theme of the book, that development economics must encompass the study of institutional
and social, as well as economic, mechanisms for modernizing an economy while eliminating absolute
poverty, is introduced.
The plan of the book is introduced through a series of 27 basic questions of development economics.
Depending on the amount of material covered by the instructor, students should be able to intelligently
address most of these questions by the end of the course.
Section 1.3 looks deeper into the meaning of development and offers both the traditional economic measures
and the new economic view of development that is multidimensional. This alternative approach is closely
tied to the discussion of Sen’s “Capabilities” approach, first introduced in the 7th edition. Further, this
section talks specifically about happiness in the context of economic development, relating the level of
happiness not only to level of income but to other factors such as democratic freedoms and the quality
of social relationships. The role of normative values in development economics—a subject dealing with
human misery and human potential, with equity as well as efficiency, with cultural change that causes
losses as well as gains, and with transfer as well as creation of wealth—is also stressed.
The conclusion is that development is both a physical reality and a state of mind. The meaning and
objectives of development include the provision of basic needs, reducing inequality, raising living
standards through appropriate economic growth, improving self-esteem in relation to the developed
countries, and expanding freedom of choice in the market and beyond.
Section 1.4 presents an in depth examination of the UN’s Millennium Development Goals (MDGs). This
includes a more comprehensive list of the goals themselves (appearing in Table 1.1) and a discussion of
the shortcomings of the MDGs. Finally, the case study on Brazil at the end of the chapter has been revised
and updated.
◼ Lecture Suggestions
The diversity of the developing world is worth stressing not only for the benefit of American students,
notorious for being a bit shaky on geography, but students in developing countries as well, who may be
unfamiliar with developing regions other than their own. Students should know that the developing world
is economically and culturally far more diverse than the developed world. You might make some summary
observations, such as within the developing world, per capita incomes range by a factor of well over 100
(from Mozambique to Singapore), while South Korea has a per capita income about equal to that of Greece
and about half that of Spain. Incomes in industrial economies range by a factor of only three. Interesting
statistics can be found from sources such as the World Bank World Development Reports and the United
Nations Human Development Reports.
Presenting a few maps and tables, or even a slide show if you take the time to develop one, can be a
valuable way to refresh the student’s memory on geography, highlight important differences between
nations and regions, and provide an overview of development issues and problems. For the slide show
you could select color graphics drawn from sources such as the United Nations Human Development
Reports and World Bank World Development Reports, both of which are published annually. The art
history department at many colleges and universities will have special equipment for making slides from
prints. These graphics can be combined with a few representative photos of economic activities that you
yourself, or a colleague, have taken in developing countries. The result is a presentation that maintains
student interest and sets the stage for the issues covered in the course.
Some students have limited knowledge of historical events in the post World War II era, especially the
events of the 1970s and 1980s. Some have little notion of oil price shocks, the external debt crises of the
1980s and the more recent Asian financial crises such as: what caused them, what effects they had around
the globe, and how they underline economic interdependence. Touching briefly on these issues can make
for a good introductory lecture theme.
In many universities, the economic development course will be filled with students who are not majoring
in economics. These students may come from different colleges with majors such as social sciences
(anthropology, sociology, or political science) or the business college (management, finance, etc.) and may
have had as little as one semester of introductory economics. Given that you are teaching an economics
class, you may wish to remind the students of this fact. Economics provides an important framework for
analyzing many of the important development problems and hence the class will draw on the students’
knowledge of economics. You may also remind the students that traditional economics is in large the study
of decision making under conditions of scarcity. You might use the first lecture to set the stage for the
approach you will take, whether it will be more interdisciplinary, more economic, more mathematical and
quantitative, more historical, or some combination. The first week or two of class will likely involve
discussions of social, political, and institutional factors as well as economic factors.
Emphasize that development economics is a difficult subject to study and teach because it does not focus
just on one country, but on all less-developed countries. Further emphasize that you will try to teach key
concepts and ideas which can be applied to the experiences of many developing countries. These concepts
and ideas are important for understanding where the developing countries are today, as well as what their
options are for the future.
and claims kindred with the image of the heavenly, whence it came, and
whither it seeks and aspires to return.
While, therefore, to wild speculations like these nature and geology give
no countenance, but demonstrate the reverse to have been the course of
creation in all the present, and in every past epoch,—that races, like
individuals, have their terms of existence,—that all die out or are violently
exterminated,—and that new families are created, adapted to the changes
which have taken place, and organically distinct from all that preceded
them,—there is, at the same time, a theory of progression and development
distinctly traceable in all the divine actings in this world. This view of
things is in every stage of it visibly dependent upon His will, as it emanates
directly from His appointment, and stands in pleasing contrast to the
rationalist phasis of creation.
“that great
Or bright infers not excellence: the earth
Though, in comparison of heaven, so small,
Nor glistering, may of solid good contain
More plenty than the sun that barren shines:
Whose virtue on itself works no effect,
But on the fruitful earth.”
When the palæontologist has completely established his position, that all
the organic phenomena of primeval times have resulted from the impress of
original structure, in opposition to the theory of progressive development
and transmutation of species; and when he can trace, also, corresponding
changes in the mineral formations in which the fossil remains are
imbedded, the important inquiry has still to be made into the causes of the
extinction of so many races of the animal and vegetable kingdoms.
Introduced successively upon the surface of the earth, was there always a
physical and necessary relation betwixt the living tribes and the varying
conditions of the surrounding media in which their lot was cast? And do the
differences in the one explain the changes in the organic functions of the
other?
When we look back to the earliest of the fossiliferous rocks we can
discover something in the nature of their materials themselves which would
cause the destruction of their organic tribes. The Silurian strata have been
violently disturbed, and much molten matter, during the period of their
deposition, injected among them; and by causes such as these, life would
suffer greatly, and whole races be suddenly destroyed. Even the strong
incased ganoids and placoids of the Devonian period could not always be
able to subsist and bear up against the spasmodic throes that produced the
conglomerates. Animals preyed likewise upon each other, and by this
means kept up then, as now, the general average and balance of life. But in
none of these modes can anything like a be inferred, any stated
provision be detected, for the outgoing and the incoming of the different
genera and species which successively peopled the globe. The rocks differ,
as the organisms differ, age to age, from each other: but the series of
changes traced in the one class of phenomena, furnish only a few data by
which to determine as to the alterations that would be produced in the class
cotemporaneous.
No land animals have been found in any of the formations beneath the
new red sandstone. No quadrupeds existed before the tertiary age. And the
monster lizards which so exuberantly sprang into existence during the
middle secondary epoch, had all disappeared when these terrestrials
occupied the stage. Wisdom we can trace in all the arrangements; care and
goodness are everywhere apparent. The seas swarmed with marine animals,
while the terrestrials could scarcely have subsisted on an upheaving earth
and new forming land. Quadrupeds roamed not over fields so diversified by
the lakes and slimy lagoons in which the Saurians found their convenient
habitation. And beyond the simple fact, that Divine will so ordained that
such things should be, both in the animal and mineral changes in the history
of our planet, we have only a ray of light to guide us in interpreting the
revolutions and destructions which are therein so indelibly recorded.
The mollusca and shell families appear and depart along with the
calcareous deposits which inclose their remains; but we know as much of
the source of the one as of the range and limit of, or the causes which
destroyed, the other. Orthoceræ and nautili have survived all changes, and
have maintained in the types by which they are represented their old
instincts and predaceous propensities. The holoptychii and dipteri perished,
just as the materials of the new red sandstone were being deposited, and
whose identity, in all essential mineral qualities, differs in nothing from the
old red in which they are entombed. The flora of the carboniferous age
came and went with the suddenness and entireness of an eastern dynasty,
the gorgeous spoils of which are all that remain to attest its former
greatness. The mammoths, dinotheriums, and kindred pachyderms of the
tertiary groups had all left the earth on the dawn of the human epoch. And
now, since the commencement of that epoch, we find that entire families
have become extirpated, that species of others have been driven from their
former localities, and that generally, both of vegetables and animals, the
geographical distribution is being, year by year, greatly modified. During
the last century, the introduction into Germany of some new species of
insects, and their multiplication, utterly destroyed forests of vast extent; and
every year, in some quarter of the globe, we hear of equally mighty
catastrophes produced by equally minute insidious causes.
The organic things of earth, it would thus appear, have their terms of
existence of longer and shorter duration, and the race at last dies out equally
with the individuals which compose it. No better reason for this can be
assigned, than that such is, and has always been, the course of nature.
Particular families of plants and animals are cotemporaneous with particular
groups of rocks: with these they are observed for the first time; at the close
of the deposit, all farther traces of their remains are lost; and, in so far, there
is ground for arguing that the same general causes were concerned in
effecting the successive changes, organic as well as inorganic, of the
periods and formations in question. What these causes were, it may never
be permitted to science fully to determine. It was indeed, the opinion of
Cuvier, that in the mammoth epoch a change of climate effected the
destruction of this giant family of pachyderms. This change of climate has
been accounted for by Murchison and others, especially in Siberia, where so
many remains are found, by an elevation of the country to the height of one
or two hundred-feet above its former level. And doubtless, by such a
change, animal as well as vegetable life must, in many specific forms, have
been greatly affected.
There can be little doubt, however, of the most perfect adaptive
arrangements prevailing through all the geological epochs, some of which
have been plausibly conjectured. As reptiles, for instance, differ from birds
and mammals, in having a lower and simpler structure of the lungs and
heart, and therefore a less active performance of the respiratory functions,
they become less dependent on the atmosphere or oxygen for existence.
“Hence,” says Professor Owen, “from their extraordinary prevalence in the
secondary periods, under varied modifications of size and structure,
severally adapting them to the performance of those tasks in the economy
of organic nature which are now assigned to the warm-blooded and quick-
breathing classes, the physiologist is led to conjecture that the atmosphere
had not undergone those changes, which the consolidation and
concentration of certain of its elements in subsequent additions to the
earth’s crust may have occasioned during the long lapse of ages during
which the extinction of so large a proportion of the reptilian class took
place. And if the chemist, by wide and extended views of his science in
relation to geology, and mineralogy, should demonstrate, as the botanist
from considerations of the peculiar features of the extinct flora has been led
to suspect, that the atmosphere of this globe formerly contained more
carbon and less oxygen than at present, then the anatomist might, à priori,
have concluded that the highest classes of animals suited to the respiration
of such a medium must have been the cold-blooded fishes and reptiles. And
beside, the probability of such a condition of the zoological series being
connected with the chemical modifications of the air, the terrestrial reptiles,