Professional Documents
Culture Documents
BRIEF CONTENTS
Part I Development and underdevelopment
1 The study of economic development 3
2 The development gap and the measurement of poverty 25
3 The characteristics of underdevelopment and structural
change 70
4 The role of institutions in economic development 117
5 Theories of economic growth: why growth rates differ between countries 130
CONTENTS
List of Figures xxii
List of Tables xxv
List of Case Examples xxvii
Preface xxviii
Universal Declaration of Human Rights xxxiii
Acknowledgements xxxiv
5 Theories of economic growth: why growth rates differ between countries 130
Introduction 131
Classical growth theory 132
The Harrod–Domar growth model 140
Neoclassical growth theory 146
The production function approach to the analysis of growth 150
Production function studies of developing countries 158
‘New’ (endogenous) growth theory and the macrodeterminants of growth 162
‘Growth diagnostics’ and binding constraints on growth 171
Summary 173
Discussion questions 174
Notes 174
Websites on growth theory 175
LIST OF FIGURES
2.1 Lorenz curve diagram 34
2.2 Distribution of world income (percentage of total, with quintiles of population
ranked by income) 38
2.3 Percentage of people in the world at different poverty levels, 2005 45
3.1 The law of diminishing returns 72
3.2 Natural resources and economic growth 77
3.3 Relation between productivity and energy intake 93
3.4 The distribution of the labour force 2005 (%) 103
3.5 The distribution of output 2005 (%) 103
3.6 Association between growth of industry and growth of GDP 108
5.1 Ricardo’s model of the economy 137
5.2 Adjustment of gw and gn 144
5.3 The ‘labour-intensive’ form of the neoclassical production function 148
5.4 Equilibrium capital–labour ratio and output per head 148
5.5 The production function 151
5.6 Production function diagram 152
5.7 The effect of increasing returns 152
5.8 Kaldor’s technical progress function 165
6.1 Marginal product of successive units of labour added to the land 201
6.2 Tendency towards diminishing returns 202
6.3 Industrial/capitalist sector 202
6.4 Industrial terms of trade and agricultural growth rate 205
6.5 Industrial terms of trade and industrial growth rate 206
6.6 Growth equilibrium and disequilibrium 206
6.7 Disguised unemployment 210
6.8 The dynamic surplus 212
6.9 Effect of labour withdrawal 213
6.10 Maximum sustainable labour 214
6.11 The possibility of negative marginal product 215
6.12 Backward-bending supply curve 215
6.13 The social valuation of labour 216
7.1 Capital-saving technical progress 232
7.2 Labour-saving technical progress 233
7.3 Neutral technical progress 233
LIST OF FIGURES xxiii
15.5 The trade-off between growth and the balance of payments 524
15.6 Welfare gains and losses from protection 536
15.7 Tariffs and subsidies 537
15.8 Movements in the terms of trade 541
15.9 Asymmetrical cycles 541
15.10 Nominal and real price indices of non-food primary commodities, 1862–1999 544
15.11 Keynes’s commod-control scheme 552
15.12 Price compensation and export earnings 555
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children like stories, and during the telling of the story, if it is at all
worth while, the children will be quiet and attentive. The teacher
may, however, call the restless child to herself, saying to him, “I like
to have somebody stand by me.” Better still, she may gather all the
pupils around her and say to the mischievous boy, “Robert, I am
going to tell you a story. The other boys and girls may listen.” This
will captivate the child, and when she has finished she may ask him
to tell the story.
By this time the reader will sigh and ask, “Must all this be done to
keep one mischievous boy at work?” Yes, but it is far easier to
interest him than to be worried by his pranks. Then, too, by keeping
him interested, the teacher is administering to his development,
while to let him loll in his mischief would only tend to create in him
habits of inattention and idleness. At the close of the day the boy will
go home happy and the benediction of a happy teacher will follow
him. Nothing adds more to a teacher’s usefulness and happiness
than the thought of work well done.
In the above procedure the teacher has practiced suggestive
control. She has led the mischievous boy into activities that interest
him, that appeal and fascinate as well as satisfy that active mind, and
that will mature into right action. It is far easier to deal with a child
full of life, than to deal with a dullard. Direct properly the impulse
that causes this mischief, and it will become a force for real good in
the child’s life. The discreet teacher will look ahead and avoid
difficulties, and nowhere will she get more valuable clues to a
method of control than on the playground.
Watch the child in his play at recess to see what activity interests
him most. Suggest to him some point about that activity which he
has overlooked and commend him on his skill. Every child has a
hobby. If you can find this boy’s hobby and tell him something about
it which he does not know, you will make a warm place in his heart
for yourself. Then utilize the knowledge thus gained, and his
increased confidence in you, in order to add to his school work just
the element that will make it so interesting for the child that he will
find the work more delightfully fascinating than the mischief.
The first grade teacher needs to be in her room but a few days
before she will see some little child making grimaces at his neighbor
and not infrequently he may make a grimace at the teacher,
especially if he feels that the teacher has not dealt fairly with him.
This is not a serious annoyance and should give the prudent teacher
no worry. It can not be repeated too often that many of the small
offenses that harass a school day are doubly intensified by the
attention that is paid them. Often when a pupil does some petty
misdemeanor, he would soon forget it were it not that the teacher
notices it and pounces upon the offender with some brand of
punishment and thereby the child learns that this certain offense is a
thing that the teacher dislikes. In the future, whenever that child’s
feelings are ruffled, he will resort to this certain offense to annoy the
teacher. The discreet teacher will train her pupils in such a way that
they will not settle upon any specific type of annoyance.
In cases where a child resorts to the practice too frequently, the
teacher will find it well to devise some means by which she can
substitute one activity for another; that is, substitute a more
interesting activity for the making of grimaces. The teacher may use
the following method and conversation:
“Children, we are planning to have a little play party once a month.
This is to be on the last Friday afternoon of each month. Each one of
you is to bring either a cooky, an apple, an orange, or a banana, and I
will bring some candy. We will play all kinds of games and just before
school dismisses we will eat our dainties. Won’t that be fine? But,
children, I have just thought that any one who makes grimaces or
ugly faces during the month ought not to be invited. We do not want
our party spoiled. What do you say?”
Of course all, or nearly all of the children will say that any one who
is guilty of making faces shall not come. The teacher who has not
tried anything like this will think it is absurd and impracticable, but
it will greatly assist in removing grimacing and many other evils that
troop through a teacher’s school experiences.
The means of discipline need not necessarily be a party. It can be
some other affair or activity that children like. If the teacher chooses
a party, she must have a goodly number of games ready and keep her
children intensely interested.
The luncheon is an important feature of the party and must be well
managed by the teacher. All the sweetmeats must be divided into
small parts and so mixed that a child does not get the dainty he
contributed. A cooky can be cut into four pieces, a banana into four
or five pieces, and the same with other sweetmeats. Children like
little things. Then, too, the teacher may suggest that they play at
having a luncheon.
CONSTRUCTIVE TREATMENT
COMMENTS
CONSTRUCTIVE TREATMENT
Mr. Briggs did well to search for underlying causes and effective
remedies, because the use of authority in such a case is a mistake, as
he found. Make no attempt to suppress the practice, but proceed at
once to the constructive plan of building up a good sentiment.
Whatever you do, do not assume that the pupil is disrespectful to
you. If the pupils have shown such disrespect in the past, simply set
about gaining their confidence.
Face-making is largely an outgrowth of the play impulse, no matter
what its motive. Substitute a better form of play. Dramatizing a story
that emphasizes the opposite of the undesirable characteristics, is
one of the best ways of overcoming the fault. Read “The Little Knight
of Kentucky” during the twenty-minute periods just before school
closes. Dramatize parts of it. When the children are imbued with the
chivalrous spirit of the story, suggest the incongruities of face-
making and other spiteful acts, by saying to the boy whom you
“catch”: “Harold, the little knights of Kentucky did not make faces at
each other. Would we be as proud of them as we are, had they done
so? Then, let’s not have any one who makes faces play that story
today.”
COMMENTS
CONSTRUCTIVE TREATMENT
Miss Stone has one simple task: to rouse from absorption in one
duty and wisely distribute her attention to several matters.
Promises must not be taken as fulfillment; assurances of any sort
must not be taken for more than they are worth. Find a safe medium
between espionage and disastrous indifference.
COMMENTS
CONSTRUCTIVE TREATMENT
Avoid asking such questions as, What made you laugh? Why did
you do it? etc., except privately. Even then unless you are reasonably
sure of a satisfactory answer to these questions you may complicate
your case by so doing instead of helping it toward a solution.
Pass over details of causes which pupils most often allude to and
lay hold of the prime provocation for bad order. Use your power of
analysis and apply an effective remedy. Henry needs an abundance
of heavy but interesting work. Bear down so deep into his interest in
geology that he cannot menace your loyalty to him by trifling with
you in respect to discipline. Treat him so squarely, frankly,
generously that his respect for you will be an unremitting check on
small misdemeanors.
COMMENTS
Pupils may not know what to answer when asked, “Why did you do
so and so?” The truth is the causes are numerous. The last cause may
have been the stumbling of one pupil over another one’s foot. But
another cause lies behind this—disrespect for the teacher; behind
this, fondness for another teacher. Why does a pupil act in a certain
fashion? He is underfed, improperly clothed, irritated from
insufficient sleep—these are all proper answers to the question,
“Why?” Hence, every time the query is put a teacher runs the risk of
provoking a worse situation and yet of gaining nothing from the
inquisition.
ILLUSTRATION
A bright lad and into all sorts of mischief, George had gradually
acquired the reputation among the teachers of being “a bad boy”;
and the new superintendent was informed to this effect when he
came to the school.
One day there was a great commotion in Snake in School-
his grade; an innocent garter snake had room
been let loose in the school-room. George was accused, and as the
disturbance had begun in his corner of the room, and as he was
known to have a great fondness for all sorts of animals, insects,
snakes, etc., the evidence seemed decidedly against him.
“No, sir!” he replied to the superintendent, when sent for to go to
the office. “No, sir! I didn’t do it!”
“I’m afraid that you are not telling me the truth, George. You have
a bad reputation. I think that I shall punish you by sending you into
the next lower grade, until you can learn to become more of a man.”
“It’s such a disgrace, mother! No, I can’t go back. The boys will all
make fun of me. Besides, I didn’t do it!”
Finally, however, his mother made him see that the manly thing
would be to take his punishment, even if he wasn’t to blame. So, on
the following morning, he reported himself to the teacher of the next
lower grade, and told her that he was to study there.
Later in the day the superintendent made his rounds, and
exclaimed surprisedly, when he saw George,
“Why, you here? I didn’t expect to ever see you again!”
Needless to say that was the last appearance of George at school,
and a life that might have been helped was spoiled by an unjust
punishment and a careless remark. Even superintendents may make
mistakes!
CONSTRUCTIVE TREATMENT
COMMENTS
The fact that George was fond of animals, insects, snakes, etc., was
the clew for the teacher to work upon in gaining the good will and
coöperation of the troublesome boy. Knowing one strong interest
that he had, the teacher should start with that and work out from it
to other and broader fields of action.
Unless the teacher had actual proof to the contrary, she should
have accepted the boy’s statement that he did not bring in the snake.
It is far better that a guilty boy go unpunished, than that an innocent
person be punished. Take the initiative in coöperation with the
troublesome pupil and the troubles will soon disappear.
Henry Gould was very fond of his collie The Pet Dog
and insisted upon having his company every
day at school. His teacher, Miss Greenway, probably would have
made no objection to this had it not been for a fact that the dog was
inclined to snap at any child except his master and thus endanger the
safety of the other children. How to forbid the presence of the dog
without arousing the antagonism of his owner was the problem. She
resolved to try approval and initiative in coöperation. So she called
Henry to her at noon time and said:
“Henry, I noticed the collie snapping at one of the little girls today,
and I think we shall have to ask him to stay at home after this. But he
is such a bright little fellow we shall miss him. Don’t you think it
would be fine for the children to take his picture before he goes? How
would you like to get him into a good position when the drawing
period comes and let the children use him for a model?”
Henry was proud to have his pet honored, stood by him patiently
while the children drew, and made no further insistence that he
should come to school.
Teasing Rhymes
“Hey Diddle Diddle!
Parts his hair in the middle!”
This was the couplet that greeted John Fraser as he entered his
eighth grade room one September noon. Above the couplet was a
portrait of himself, the style of his hair indicated very clearly. He
erased the decorations hastily, but said nothing about it. He was very
young, however, and the thoughtless disrespect shown him hurt
sadly.
A day or two passed, during which he noticed the covert
amusement at his faultlessly pressed clothes, his punctilious
manners, his careful grooming, all new and strange to the crude little
town in the Southwest in which he taught. Then, one noon, he
entered the room from the playground to find a rough cartoon on the
board, labeled, “Mr. Fraser pressing his pants to make creases at 2
a.m.” The pupils were vastly entertained by it.
“Who made this picture?” John demanded, very angry and feeling
that his dignity demanded that the offender be punished. Every head
turned instantly toward Cleaver Trotter, who seemed much pleased
to be singled out for attention.
“Cleaver, you may remain in at recess. I want to see you.”
“Just as you say, Mr. Fraser!” sang out Cleaver, jauntily. There was
a half-suppressed titter of admiration, and Mr. Fraser felt that he
had come out second best.
At recess he ascertained that Cleaver had really drawn the picture,
and forbade him sternly to repeat the offense. The interview took
place in the otherwise empty school-room, and when Cleaver was
allowed to go he joined a group of gaping admirers on the
playground.
“What did he do to you?” they demanded to a man.
“Oh, he asked me why I did it, and I told him I couldn’t help it; I
just knew it took him all night to press his pants that way.”
“And what did he say then?”
“Well, he smelled of the smelling-salts and said that’d be all for
today, so I came on out.”
None of this account was true, but Cleaver won by it the thing his
boyish vanity wanted, the admiration of his crowd. They approved
the ridicule because it furnished them with fun, and Cleaver was
shrewd enough to know that his leadership depended upon their
approbation of his attitude. He annoyed John Fraser constantly