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Economic Development SIM Guide

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0% found this document useful (0 votes)

271 views70 pages

Economic Development SIM Guide

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d.saban.546678

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

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You are on page 1/ 70

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: Natividad Dulce David Madrazo, MM

Email: nmadrazo@umindanao.edu.ph
Student Consultation: By LMS, email
Mobile:
Phone: (082) 227-5456 Local 131
Effectivity Date: May 2020
Mode of Delivery: Blended (Onliine with face-to-face or virtual sessions)
Time Frame: 54 Hours
Student Workload: Expected Self-Directed Learning
Requisites: BE 221
Credit: 3
Attendance Requirements: A minimum of 95% attendance is required at all
scheduled virtual or face-to-face sessions.

Course Outline Policy

Areas of Concern Details

Contact and Non-contact Hours 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.
Assessment Task Submission 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
standards or other reasonable circumstances like
illness, accidents, financial constraints.
Re-marking of Assessment You should request in writing addressed to the course
Papers and Appeal 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.

Grading System 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.

Preferred Referencing Style APA 6th Edition.

Student Communication 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
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

Contact Details of the Dean Vicente Salvador E. Montaño, DBA

Email: vicente_montano@umindanao.edu.ph
Phone: 082-227-5456 Local 131

Contact Details of the Program Claudio A. Bisares, MSE

Head Email: cbisares@umindanao.edu.ph
Phone: 082-227-5456 Local 131

Students with Special Needs 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.
Online Tutorial Registration

Library Contact Details Brigida E. Bacani Head – LIC

Phone: (082) 300 – 5456
Hotline No. 0951 376 6681
library@umindanao.edu.ph

Well-being Welfare Support Help Dra. Ronadora E. Deala – Head - GSTC

Desk Contact Details Email: ronadora_deala@umindanao.edu.ph
Phone: (082)300-5456
GSTC Facilitator: Rhoda Neileen P. Luayon
Email: gstcmain@umindanao.edu.ph

Course : CBM 122 Economic Development

Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC 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.

2. Enumerate and expound the core values of development.

_____________________________________________________________________
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

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

LET’S ANALYZE

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

Expound your answer.

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

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

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

stages of development.

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
3. _____________________________________________________________________
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4. _____________________________________________________________________
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5. _____________________________________________________________________
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6. _____________________________________________________________________
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7. _____________________________________________________________________
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8. _____________________________________________________________________
____________________________________________________________________

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
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

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

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

Week 8-9 Economic Development And Population, Urbanization,

2
Course Outline: CBM 122 – Economic Development

Course Coordinator: Natividad Dulce David Madrazo, MM

Email: nmadrazo@umindanao.edu.ph
Student Consultation: By LMS, email
Mobile:
Phone: (082) 227-5456 Local 131
Effectivity Date: June 25, 2020
Mode of Delivery: Blended (On-Line with face-to-face or virtual sessions)
Time Frame: 54 Hours
Student Workload: Expected Self-Directed Learning
Requisites: BE 221
Credit: 3
Attendance Requirements: A minimum of 95% attendance is required at all
scheduled virtual or face-to-face sessions.

Course Outline Policy

Areas of Concern Details

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

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.

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

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.

Grading System 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.

Preferred Referencing Style APA 6th Edition.

Student Communication You are required to create a umindanao email account

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
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

Contact Details of the Dean Vicente Salvador E. Montaño, DBA

Email: vicente_montano@umindanao.edu.ph
Phone: 082-227-5456 Local 131

Contact Details of the Program Claudio A. Bisares, MSE

Head Email: cbisares@umindanao.edu.ph
Phone: 082-227-5456 Local 131

Library Contact Details Brigida E. Bacani Head – LIC

Phone: (082) 300 – 5456
Hotline No. 0951 376 6681
library@umindanao.edu.ph

Well-being Welfare Support Help Dra. Ronadora E. Deala – Head - GSTC

Desk Contact Details Email: ronadora_deala@umindanao.edu.ph
Phone: (082)300-5456
GSTC Facilitator: Rhoda Neileen P. Luayon
Email: gstcmain@umindanao.edu.ph

Course : CBM 122 Economic Development

MODULE 2 – VARIOUS THEORIES ON ECONOMIC DEVELOPMENT (Weeks 4 – 5)

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

1. Acquire extensive information and examine each economic development theories

from 1950s to the early 21st century.

CF’s Voice: In this second module of CBM 122 - Economic Development, you will be
introduced to different economic development theories that were utilized by developed
nations.

CO: Exploring the above theories will allow you to explain the extent which economic
theories may be helpful in designing development policies among developing nations (ULO
2).

LET’S PROCEED!

METALANGUAGE

This section relates to the more essential terms needed for you to understand this unit. To
demonstrate the ULO 2, you will refer to the following definitions should you have some
queries along the way.

1. Big push A concerted, economy-wide, and typically public policy–led effort to initiate
or accelerate economic development across a broad spectrum of new industries and
skills.

2. Center In dependence theory, the economically developed world.

3. Complementarity An action taken by one firm, worker, or organization that

increases the incentives for other agents to take similar actions. Complementarities
often involve investments whose return depends on other investments being made
by other agents.

4. Coordination failure A situation in which the inability of agents to coordinate their

behavior (choices) leads to an outcome (equilibrium) that leaves all agents worse off
than in an alternative situation that is also an equilibrium.

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

5. Dependence The reliance of developing countries on developed-country economic

policies to stimulate their own economic growth. Dependence can also mean that
the developing countries adopt developed-country education systems, technology,
economic and political systems, attitudes, consumption patterns, dress, and so on.

6. Dominance In international affairs, a situation in which the developed countries

have much greater power than the less developed countries in decisions affecting
important international economic issues, such as the prices of agricultural
commodities and raw materials in world markets.

7. Dualism The coexistence of two situations or phenomena (one desirable and the
other not) that are mutually exclusive to different groups of society—for example,
extreme poverty and affluence, modern and traditional economic sectors, growth
and stagnation, and higher education among a few amid large-scale illiteracy.

8. False-paradigm model The proposition that developing countries have failed to

develop because their development strategies (usually given to them by Western
economists) have been based on an incorrect model of development, one that, for
example, overstresses capital accumulation or market liberalization without giving
due consideration to needed social and institutional change.

9. Free markets The system whereby prices of commodities or services freely rise or
fall when the buyer’s demand for them rises or falls or the seller’s supply of them
decreases or increases.

10. Free-market analysis Theoretical analysis of the properties of an economic system

operating with free markets, often under the assumption that an unregulated
market performs better than one with government regulation.

11. Harrod-Domar growth model A functional economic relationship in which the

growth rate of gross domestic product (g) depends directly on the national net
savings rate (s) and inversely on the national capital-output ratio (c).

12. Lewis two-sector model A theory of development in which surplus labor from the
traditional agricultural sector is transferred to the modern industrial sector, the
growth of which absorbs the surplus labor, promotes industrialization, and
stimulates sustained development.

13. Market failure A market’s inability to deliver its theoretical benefits due to the
existence of market imperfections such as monopoly power, lack of factor mobility,
significant externalities, or lack of knowledge. Market failure often provides the
justification for government intervention to alter the working of the free market.
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

14. Market-friendly approach The notion historically promulgated by the World Bank
that successful development policy requires governments to create an environment
in which markets can operate efficiently and to intervene only selectively in the
economy in areas where the market is inefficient.

15. Multiple equilibria A condition in which more than one equilibrium exists. These
equilibria sometimes may be ranked, in the sense that one is preferred over another,
but the unaided market will not move the economy to the preferred outcome.

16. Neoclassical counterrevolution The 1980s resurgence of neoclassical free-market

orientation toward development problems and policies, counter to the
interventionist dependence revolution of the 1970s.

17. Neocolonial dependence model A model whose main proposition is that

underdevelopment exists in developing countries because of continuing exploitative
economic, political, and cultural policies of former colonial rulers toward less
developed countries.

18. O-ring model An economic model in which production functions exhibit strong
complementarities among inputs and which has broader implications for
impediments to achieving economic development.

19. Patterns-of-development analysis An attempt to identify characteristic features of

the internal process of structural transformation that a “typical” developing
economy undergoes as it generates and sustains modern economic growth and
development.

20. Periphery In dependence theory, the developing countries.

21. Public-choice theory (new political economy approach) The theory that self-interest
guides all individual behavior and that governments are inefficient and corrupt
because people use government to pursue their own agendas.

22. The term self-discovery somewhat whimsically expresses the assumption that the
products in question have already been discovered by someone else (either long
ago, or recently in a developed economy); what remains to be discovered is which of
these products a local economy is relatively good at making.

23. Stages-of-growth model of development A theory of economic development,

associated with the American economic historian Walt W. Rostow, according to
which a country passes through sequential stages in achieving development.

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

24. Structural transformation The process of transforming an economy in such a way

that the contribution to national income by the manufacturing sector eventually
surpasses the contribution by the agricultural sector. More generally, there is a
major alteration in the industrial composition of any economy.

25. Structural-change theory The hypothesis that underdevelopment is due to under-

utilization of resources arising from structural or institutional factors that have their
origins in both domestic and international dualism. Development therefore requires
more than just accelerated capital formation.

26. Surplus labor The excess supply of labor over and above the quantity demanded at
the going free-market wage rate. In the Lewis two-sector model of economic
development, surplus labor refers to the portion of the rural labor force whose
marginal productivity is zero or negative.

27. Underdevelopment An economic situation characterized by persistent low levels of

living in conjunction with absolute poverty, low income per capita, low rates of
economic growth, low consumption levels, poor health services, high death rates,
high birth rates, dependence on foreign economies, and limited freedom to choose
among activities that satisfy human wants.

The key words in this module include Rostow’s stages of growth, Harrod-Domar model,
Lewis two-sector model, Patterns of Development, the Neocolonial dependence model, the
False-paradigm model, the Dualistic-development thesis, the Free-market approach, the
Public-choice approach, the Market-friendly approach, the Multiple equilibria, the Theory of
big push and the O-ring theory.

ESSENTIAL KNOWLEDGE

To perform the aforesaid big picture (unit learning outcome) for the next two (2) 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.

In Chapter 3 pages 120-121, you will read the Linear Stages of Growth models by Walt W.
Rostow and duo economists British Roy F. Harrod/ American Evesey Domar more popularly
known as Harrod-Domar growth models. Rostow detailed his stages of growth that all
countries must go through. Harrod-Domar, on the other hand related the importance of
savings and investment to propel economic growth.

Structural change models that you will find in pages 124 and 129 have two notable theories
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

by W. Arthur Lewis and Hollis B. Chenery and his coauthors. Lewis had his two-sector
surplus model where the labor of the agriculture sector transferred and were employed in
the urban sector. Chenery and coauthors studied postwar patterns of development of
several countries and their empirical work identified different features common among the
countries.

1970 saw the emergence of International Dependence models since “developing countries
are beset by institutional, political, and economic rigidities, both domestic and international,
and caught up in a dependence and dominance relationship with rich countries”. Major
streams of thought are the neocolonial dependence model, the false-paradigm model, and
the dualistic-development thesis that you will find in pages 131 and 133.

Ten years after, the Neoclassical Counterrevolution surfaced where economists argued that
“underdevelopment resulted from poor resource allocation due to incorrect pricing policies
and too much state intervention by overly active developing-nation governments”. You will
read in pages 135-137 the three (3) approaches being, the free-market approach, the public-
choice approach, and the market-friendly approach.

Finally, you will read some new models of economic development as influenced by
complementarities and coordination failures under pages 165, 168, 174 and 187. You will
dip into the multiple equilibria, the theory of big push and the O-ring theory. To cap this unit
is the topic on economic development as self-discovery on page 192.

LET’S CHECK

1. Enumerate Rostow’s stages of growth

2. What the two sectors under Lewis model?

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. Give the common features Chenery and coauthors revealed from their study.

4. Define the following:

a. coordination failure

b. complementarity

LET’S ANALYZE

1. Explain the Harrod-Domar model.

2. Analyze each and every International Dependence models.

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
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

3. List the Neoclassical counterrevoluton approaches. What do you think is the

approach that the Philippines should employ? Defend your answer.

4. Pick one of the new models of economic development and discuss extensively.

5. How will you adapt economic development as self-discovery in the Philippines?

Elaborate your answer.

_____________________________________________________________________
_____________________________________________________________________
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

IN A NUTSHELL

All discussed economic development theories from the 1950s to the early part of the 21 st
century offered a broad range of experience that developing nations could explore,
scrutinize and probably redesign to their particular state of affairs.

I have listed below lessons learned and arguments from this unit. You have to list your own
too.
1. Due to the earlier notions of development that a country is considered developed
when it is industrialized, so many agricultural lands and efforts have been put aside
and neglected. People in the rural sector has this contorted concept to this day thus
governments have much work to do to erase the same. They have to restore the
“glory” of the agricultural sector.

2. Can the Philippines really be out of the shadow of its colonizers especially the US? It
is of everyone’s knowledge of the Filipinos’ colonial mentality where imported goods,
expatriates, foreign-schooled Filipinos are more looked up to than their local
counterparts.

YOUR TURN

3. ____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

4. ____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

5. ____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

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

8. ____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

END OF MODULE 2

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
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

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

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

Week 8-9 Economic Development And Population, Urbanization,

2
Course Outline: CBM 122 – Economic Development

Course Coordinator: Natividad Dulce David Madrazo, MM

Course Outline Policy

Areas of Concern Details

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

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.

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

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.

Grading System 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.

Preferred Referencing Style APA 6th Edition.

Student Communication You are required to create a umindanao email account

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
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

Contact Details of the Dean Vicente Salvador E. Montaño, DBA

Email: vicente_montano@umindanao.edu.ph
Phone: 082-227-5456 Local 131

Contact Details of the Program Claudio A. Bisares, MSE

Head Email: cbisares@umindanao.edu.ph
Phone: 082-227-5456 Local 131

Library Contact Details Brigida E. Bacani Head – LIC

Phone: (082) 300 – 5456
Hotline No. 0951 376 6681
library@umindanao.edu.ph

Well-being Welfare Support Help Dra. Ronadora E. Deala – Head - GSTC

Desk Contact Details Email: ronadora_deala@umindanao.edu.ph
Phone: (082)300-5456
GSTC Facilitator: Rhoda Neileen P. Luayon
Email: gstcmain@umindanao.edu.ph

Course : CBM 122 Economic Development

Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 6 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

MODULE 3 – MEASURING INCOME INEQUALITY AND ABSOLUTE POVERTY (Weeks 6– 7)

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

1. Measure inequality in income distribution and poverty through the

a. personal or size distribution of income
b. Lorenz curves
c. Kuznets’ ratio
d. Gini coefficient

2. Analyze the different areas of intervention to address poverty and income inequality

CF’s Voice: In this third module of CBM 122 - Economic Development, you will do some
simple computations to be able to analyze the inequality that exist among income earners.
The authors also recommend several interventions to resolve the issues tackled.

CO: This module connects with Module 2 as the measurements by computation will
further allow you to realize ULO 3, that is to explain the extent which economic theories may
be helpful in designing development policies among developing nations.

LET’S PROCEED!

METALANGUAGE

This section relates to the more essential terms needed for you to understand this unit. To
demonstrate the ULO 3, 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, and shelter.

2. Asset ownership The ownership of land, physical capital (factories, buildings,

machinery, etc.), human capital, and financial resources that generate income for
owners.

3. Decile A 10% portion of any numerical quantity; a population divided into deciles
would be divided into ten equal numerical groups.

Course : CBM 122 Economic Development

Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 7 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

4. Disposable income The income that is available to households for spending and saving
after personal income taxes have been deducted.

5. Factors of production Resources or inputs required to produce a good or a service,

such as land, labor, and capital.

6. Functional distribution of income (factor share distribution of income) The

distribution of income to factors of production without regard to the ownership of the
factors.

7. Gini coefficient An aggregate numerical measure of income inequality ranging from 0

(perfect equality) to 1 (perfect inequality). It is measured graphically by dividing the
area between the perfect equality line and the Lorenz curve by the total area lying to
the right of the equality line in a Lorenz diagram. The higher the value of the coefficient
is, the higher the inequality of income distribution; the lower it is, the more equal the
distribution of income.

8. Income inequality The disproportionate distribution of total national income among

households.

9. Indirect taxes Taxes levied on goods ultimately purchased by consumers, including

customs duties (tariffs), excise duties, sales taxes, and export duties.

10. Kuznets curve A graph reflecting the relationship between a country’s income per
capita and its inequality of income distribution.

11. Land reform A deliberate attempt to reorganize and transform existing agrarian
systems with the intention of improving the distribution of agricultural incomes and
thus fostering rural development.

12. Lorenz curve A graph depicting the variance of the size distribution of income from
perfect equality.

13. Personal distribution of income (size distribution of income) The distribution of

income according to size class of persons—for example, the share of total income
accruing to the poorest specific percentage or the richest specific percentage of a
population— without regard to the sources of that income.

14. Progressive income tax A tax whose rate increases with increasing personal incomes.

15. Public consumption All current expenditures for purchases of goods and services by
all levels of government, including capital expenditures on national defense and
security.

Course : CBM 122 Economic Development

Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 8 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

16. Quintile A 20% proportion of any numerical quantity. A population divided into quin-
tiles would be divided into five groups of equal size.

17. Redistribution policies Policies geared to reducing income inequality and expanding
economic opportunities in order to promote development, including income tax
policies, rural development policies, and publicly financed services.

18. Regressive tax A tax structure in which the ratio of taxes to income tends to decrease
as income increases.

19. Subsidy A payment by the government to producers or distributors in an industry to

prevent the decline of that industry, to reduce the prices of its products, or to
encourage hiring.

The key words in this module include absolute poverty, income inequaity, personal or size
distribution of income, functional or factor share distribution of income, quintile, decile,
Kuznets ratio, Lorenz curve, Gini coefficient.

ESSENTIAL KNOWLEDGE

To perform the aforesaid big picture (unit learning outcome) for the next two (2) 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.

During the first weeks of the course, we mentioned that economic development of nations are
now measured on three more specific venues, that is in terms of levels of employment,
equality in income distribution and level of poverty. An individual may be employed and yet
the question is how much income or salary or wage does he receive. How does this salary
compare with other individuals? In Chapter 5, there are two methods used in measuring
income equality or inequality: the personal or size distribution of income and the functional
or distributive factor share distribution of income. You will pursue the measurement of
income inequality specifically through the personal or size distribution of income using the
quintiles, deciles and Kuznets ratio. We will proceed to other measures of poverty and income
inequality with the Lorenz curves and Gini coefficients.

When is an individual or a nation considered to be or has a percentage of their population

under absolute poverty level? You can read and understand more on this in page 226.

Under Module 2, you were introduced to Lewis’ two-sector model made up of the rural sector
and the modern sector. In page 232, the authors inject three typologies where the sectors
develop at the same time and the Lorenz curves shift respectively.

Course : CBM 122 Economic Development

Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 9 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

In conclusion, “developing countries that aim to reduce poverty and excessive inequalities in
their distribution of income need to know how best to achieve their aim thus four broad areas
of possible government policy intervention are identified”. You will read this in pages 256-
262.

LET’S CHECK

1. Contrast personal or size distribution of income from the functional or distributive factor
share distribution of income.

2. Identify where income for individuals is obtained?

3. Draw the Lorenz curves (properly identified) presenting a relatively:

a. unequal income distribution

b. equal income distribution

Course : CBM 122 Economic Development

Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 10 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

4. Compute the quintiles, deciles and Kuznets ratio. Using the quintile, compute the K’s
ratio of the first two-bottom percentage and the top percentage. Analyze the ratio.
SHOW ALL SOLUTIONS.

33 30 43 59 87 56 67 28 62 32
42 21 16 46 75 83 71 92 13 90

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_____________________________________________________________________
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_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 11 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

LET’S ANALYZE

1. When does absolute poverty exist? Do we see this in the Philippines? Prove/defend
your answer extensively.

2. Scrutinize all the recommended interventions to reduce poverty and income

inequality. Apply real situations among Asian countries in the discussion.

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3. The authors included the countries that adopted the different growth
typologies. Pick one country per growth typology and outline the economic
development that happened in said country. Discuss all typologies.

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IN A NUTSHELL

All developing nations will endeavor to eliminate poverty, reduce wide income inequality and
keep down unemployment level.

I have listed below lessons learned and arguments from this unit. You have to list your own
too.
1. How so evident the income disparity that prevails in our country. We know of Filipinos
who are “filthy” rich belonging in the highest strata of the society and has no worry of
the issues discussed. On the other hand, we have the “isang kahig, isang tuka”
Filipinos who neither have a roof under their heads nor three square meals a day nor
a stable work or just simply a permanent daily work.

Course : CBM 122 Economic Development

Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 15 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

2. A classical notion among university graduates and even parents that upon graduation,
working means being employed. Unable to get hired, the graduate is now an addition
to the unemployed circle. There is another option and we have to push this to be the
“new normal” and that is to explore the entrepreneurial direction of the graduates.

8. _____________________________________________________________________
_____________________________________________________________________

END OF MODULE 3

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 16 | 16
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

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

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

Week 8-9 Economic Development And Population, Urbanization,

2
Course Outline: CBM 122 – Economic Development

Course Coordinator: Natividad Dulce David Madrazo, MM

Course Outline Policy

Areas of Concern Details

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

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.

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

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.

Grading System 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.

Preferred Referencing Style APA 6th Edition.

Student Communication You are required to create a umindanao email account

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
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

Contact Details of the Dean Vicente Salvador E. Montaño, DBA

Email: vicente_montano@umindanao.edu.ph
Phone: 082-227-5456 Local 131

Contact Details of the Program Claudio A. Bisares, MSE

Head Email: cbisares@umindanao.edu.ph
Phone: 082-227-5456 Local 131

Library Contact Details Brigida E. Bacani Head – LIC

Phone: (082) 300 – 5456
Hotline No. 0951 376 6681
library@umindanao.edu.ph

Well-being Welfare Support Help Dra. Ronadora E. Deala – Head - GSTC

Desk Contact Details Email: ronadora_deala@umindanao.edu.ph
Phone: (082)300-5456
GSTC Facilitator: Rhoda Neileen P. Luayon
Email: gstcmain@umindanao.edu.ph

Course : CBM 122 Economic Development

MODULE 4 – ECONOMIC DEVELOPMENT and POPULATION, URBANIZATION, HUMAN

CAPITAL, AGRICULTURE, ENVIRONMENT, INTERNATIONAL TRADE (Weeks 8– 9)

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

1. Evaluate how economic development is influenced by a developing country’s:

a. Population
b. Urbanization
c. Human capital
d. Agriculture
e. Environment
f. International trade

CF’s Voice: This is the last module of CBM 122 - Economic Development. There are
diverse sectors of a developing country that are identified so you can undertake an in-depth
diagnosis as said sectors are affected by or affect economic development.

CO: As discussion of the sectors progresses, ULO 4 will be achieved.

LET’S PROCEED!

METALANGUAGE

This section relates to the more essential terms needed for you to understand this unit. To
demonstrate the ULO 4, you will refer to the following definitions should you have some
queries along the way.

1. Crude birth rate The number of children born alive each year per 1,000 population
(often shortened to birth rate).

2. Death rate The number of deaths 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. Export dependence A country’s reliance on exports as the major source of financing

for development activities.

5. Globalization The increasing integration of national economies into expanding

international markets.

Course : CBM 122 Economic Development

6. Human capital Productive investments embodied in human persons, including skills,

abilities, ideals, health, and locations, often resulting from expenditures on
education, on-the-job training programs, and medical care.

7. Land reform A deliberate attempt to reorganize and transform agrarian systems with
the intention of fostering a more equal distribution of agricultural incomes and facil-
itating rural development.

8. Life expectancy at birth The number of years a newborn child would live if subjected
to the mortality risks prevailing for the population at the time of the child’s birth.

9. Literacy The ability to read and write.

10. Natural increase The difference between the birth rate and the death rate of a given
population.

11. Net international migration The excess of persons migrating into a country over
those who emigrate from that country.

12. Primary products Products derived from all extractive occupations—farming, lum-
bering, fishing, mining, and quarrying, foodstuffs, and raw materials.

13. Rate of population increase The growth rate of a population, calculated as the
natural increase after adjusting for immigration and emigration.

14. Total fertility rate (TFR) The number of children that would be born to a woman if
she were to live to the end of her childbearing years and bear children in accordance
with the prevailing age-specific fertility rates.

15. Under-5 mortality rate Deaths among children between birth and 5 years of age per
1,000 live births.

16. Youth dependency ratio The proportion of young people under age 15 to the
working population aged 16 to 64 in a country.

ESSENTIAL KNOWLEDGE

“United Nations Population Division projected that population would rise to about 8.1
billion in 2025 and reach about 9.6 billion by the year 2050”. Per Worldometer, as of today,
May 6, 2020, world population stands at 7.8B ++. What will contribute to these projected
population increase? From pages 287-291, you will appreciate the structure of world’s
population by geographic region, by fertility and mortality rates and by age structures. You
will have your first case study on page 321 entitled “Population, poverty and development:
China and India.

Course : CBM 122 Economic Development

“While the world as a whole became majority urban in 2009, even the developing world is
expected to become majority urban before 2020. Currently, most urban growth has
occurred in cities in Asia and Africa. There will be so much rural-to-urban migration in Asia
that its rural population will actually decline…” It’s a consensus among economists that
urbanization is inevitable as countries develop thus in pages 365-368, the authors
enumerate ten (10) strategies to employ for the urbanization, migration and employment
scenarios among nations. Your second case study on page 369 is Rural-urban migration and
urbanization in developing countries: India and Botswana.

“Health is central to well-being, and education is essential for a satisfying and rewarding
life… Both can be seen as vital components of growth and development.” You will broaden
your viewpoint on these two issues in pages 384-388. In addition, you will keep going and
read about child labor in page 391. Your Case 3, page 425 is Pathways out of poverty:
progresa/oportunidades in Mexico.

“Over 3.1 billion people lived in rural areas in developing countries in 2013, about a quarter
of them in extreme poverty. In sub-Saharan Africa, rural dwellers constitute 64% of the total
population; in South Asia, some 69% of the population live in rural areas as of 2011, with the
result that more than half the workforce is concentrated in agriculture. Countries whose
population is more than 80% rural include Ethiopia, Nepal, Niger, Papua New Guinea,
Rwanda, South Sudan, Sri Lanka, and Uganda. India remains more than two-thirds rural.”
Agriculture cannot be continuously neglected and sidelined since its development is
believed to be sine qua non to national development. The plan of action in pages 471-476
for agricultural development will be in the improvement of small-scale agriculture, provision
of the necessary economic incentives through institutional and pricing policies, and adopt
the land reform program. Before you finally leave this topic, you will scrutinize the beneficial
role of women in agriculture that you will find in pages 458-461. Case 4 is The need to
improve agricultural extension for women farmers: Kenya at page 477.

“Environmental quality strongly affects, and is affected by, economic development. An

ancient Chinese proverb states each generation shall reap what the former generation has
sown.” The discussion will revolve around urban development and the environment in pages
518-522. Case 5 in page 532 is A world of contrast on one island: Haiti and the Dominican
Republic.

You have reached International Trade, the final topic of the module and of the course.
Countries have gone more integrated with one another that have expanded international
trade to greater lengths. In page 601, you will peruse the benefits and losses of globalization
and carry on with your reading to the key issues in international trade. The last case study is
A pioneer in development success through trade: Taiwan found in page 663.

Course : CBM 122 Economic Development

LET’S ANALYZE

1. Outline the more salient considerations in Case Study 1, “Population, poverty and
development: China and India”. Incorporate personal learnings based on our
discussions from Day 1 and current events, if applicable.

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Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 10 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

2. Outline the more salient considerations in Case Study 2, “Rural-urban migration and
urbanization in developing countries: India and Botswana”. Incorporate personal
learnings based on our discussions from Day 1 and current events, if applicable.

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Course : CBM 122 Economic Development
Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 11 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

3. Outline the more salient considerations in Case Study 3, “Pathways out of poverty:
progresa/oportunidades in Mexico”. Incorporate personal learnings based on our
discussions from Day 1 and current events, if applicable.

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Course : CBM 122 Economic Development

Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 12 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

4. Outline the more salient considerations in Case Study 4, “The need to improve
agricultural extension for women farmers: Kenya”. Incorporate personal learnings
based on our discussions from Day 1 and current events, if applicable.

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_____________________________________________________________________
_____________________________________________________________________

Course : CBM 122 Economic Development

Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 13 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

5. Outline the more salient considerations in Case Study 5, “A world of contrast on one
island: Haiti and the Dominican Republic”. Incorporate personal learnings based on
our discussions from Day 1 and current events, if applicable.

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_____________________________________________________________________
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_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

Course : CBM 122 Economic Development

Prepared by : Natividad Dulce David Madrazo
Reviewed by: CMC P a g e 14 | 16
College of Business Administration Education
2nd Floor, SS Building
Bolton Street, Davao City
Telefax: (082)227-5456 Local 131

6. Outline the more salient considerations in Case Study 6, “A pioneer in development

success through trade: Taiwan”. Incorporate personal learnings based on our
discussions from Day 1 and current events, if applicable.

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_____________________________________________________________________
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Course : CBM 122 Economic Development

IN A NUTSHELL

8. Program Educational Objectives (PEO) of BSBA BE:

Three to five years after graduation, the BSBA BE graduates are expected to:
A. Utilize problem solving and rational decision making capacity in micro and macro environment;
B. Participate and be involved in the community using their knowledge and aptitude;
C. Contribute to the realization of ethical business objectives through research and feasibility study; and
D. Communicate effectively in various contexts.
9. Student Outcomes (SO) of BSBA BE and their links to PEO.
PEO
Upon graduation, the BSBA BE students are expected to:
A B C D
A. Articulate and discuss the latest developments in the specific field of practice. (PQF level 6 descriptor)
B. Effectively communicate orally and in writing using both English and Filipino.
Work effectively and independently in multi-disciplinary and multicultural teams. (PQF level 6
C.
descriptor)
D. Act in recognition of professional, social, and ethical responsibility.
E. Preserve and promote "Filipino historical and cultural heritage". (Based on RA 7722)
Perform the basic functions of management such as planning, organizing, staffing, directing, and
F.
controlling.
Apply the basic concepts that underlie each of the functional areas of business (marketing, finance,
*G. human resources management, production, and operations management, information technology, ✓ ✓
and strategic management) and employ these concepts in various business situations.
Select the proper decision-making tools to critically, analytically, and creatively solve problems and
*H.
drive results ✓ ✓
Express oneself clearly and communicate effectively with stakeholders both in oral and written
I.
forms.
Apply information and communication technology (ICT) skills as required by the business
J.
environment.
K. Work effectively with other stakeholders and manage conflict in the workplace.
L. Plan and implement business-related activities.
M. Demonstrate corporate citizenship and social responsibility
N. Exercise high personal moral and ethical standards
*O. Analyze the business environment for the strategic direction ✓ ✓
P. Prepare operational plans
Q. Innovate business ideas based on emerging industry
*R. Manage a strategic business unit for economic sustainability ✓ ✓
S. Conduct business research
T. For professional institutions: demonstrate a service orientation in one's profession
For colleges: to participate in various types of employment, development activities, and public
U.
discourses, particularly in response to the needs of the communities one serves
V. For universities: generate new knowledge using research and development projects
Note: ✓SO Address in this course.

CBM 122 – Economic Development Revision No. 0 Effective: 2nd Semester/ 2022 – 2023 Page 1 of 8
College of Business Administration Education
CBM 122 – Course Syllabus

CBM 122 – Economic Development Revision No. 0 Effective: 2nd Semester/ 2022 – 2023 Page 2 of 8
College of Business Administration Education
CBM 122 – Course Syllabus

University Vision, Mission, Values, Competences

Program Educational Objectives (PEO)
and Philosophy

Vision: The University of Mindanao envisions to be a 1. Utilize problem solving and rational
leading globally engaged university creating sustainable decision-making capacity in micro and
impact in society. macro environment;
Mission: The University of Mindanao seeks to provide a
dynamic learning environment through the highest 2. Participate and be involved in the
standard of instruction, research, extension, and community using their knowledge and
production in a private non-sectarian institution aptitude;
committed to democratizing access to education.
3. Contribute to the realization of ethical
Values: Excellence, Honesty and Integrity, Innovation, business objectives through research and
and Teamwork. feasibility study;
Core Competency: Quality, affordable and open
education 4. Communicate effectively in various
contexts.
Educational Philosophy: Transformative education
through polishing diamonds in the rough.

Student Outcomes (SO) Course Outcomes (CO)

G. Apply the basic concepts that underlie each of the 1. Explain the extent to which economic
functional areas of business (marketing, finance, human
theories may be helpful in the design of
resources management, production, and operations
management, information technology, and strategic development policies in less developed
management) and employ these concepts in various countries.
business situations.
2. Analyze causes of the
H. Select the proper decision-making tools to critically, underdevelopment in the Third World.
analytically, and creatively solve problems and drive
results. 3. Explain the role of agriculture, industry,
and trade in the development of the less
O. Analyze the business environment for the strategic
direction. developed countries.

R. Manage a strategic business unit for economic

sustainability.

CBM 122 – Economic Development Revision No. 0 Effective: 2nd Semester/ 2022 – 2023 Page 3 of 8
College of Business Administration Education
CBM 122 – Course Syllabus

Assessment Task
Course Outcomes
Theory- Practice- Coverage
(CO)
Based Based
Analyze the causes First ➢ Definition of Traditional Economics vs. the
of underdevelopment Exam Essay Contemporary Def’n of Economic Dev’t
among Third Multiple ➢ Measures of Development
World nations. Choice ➢ Objectives of Development
Questions ➢ Core Values of Development
(MCQ) ➢ Common Characteristics Among
Developing Countries
➢ Physical and Human Resource
Endowments
➢ Relative Level of Per Capita Income and
GNP
➢ Climatic Differences
➢ Population Size, Distribution and Growth

Explain the extent Second ➢ Dialectic Social Dev’t Diagram

which economic Exam Essay ➢ Linear-Stages of Growth
theories may be Multiple Case Study ➢ Structural Change Models and Patterns of
helpful in the design of Choice Oral Development
development policies Questions presentation ➢ International Dependence Models
in the less developed (MCQ) ➢ Neoclassical Counterrevolution
countries. ➢ Underdevelopment as a Coordination
Failure
➢ Multiple Equilibria
➢ Big Push Theory
➢ Kremer’s O-Ring Theory
➢ Economic Dev’t as Self-Discovery

Explain the extent Third Development Policies and Problems

which economic Exam Essay ➢ Growth and Equity Issues
theories may be Multiple Problem- ➢ Basic Concepts of Size and Functional
helpful in the design of Choice solving Distribution of Income
development policies Questions ➢ Dualistic Development and Lorenz
in the less developed (MCQ) Curves
countries. ➢ Gini Coefficients and Aggregate
Measures of Inequality
➢ Role of Economic Analysis –
Redistribution of Growth
➢ Policy Options/ Alternatives
Explain the role of Final ➢ Role of Agriculture in Economic
agriculture, industry, Exam Presentation Development
and trade in the Multiple of term ➢ Strategies towards Agricultural and
development of the Choice paper Rural Development
less developed Questions ➢ Technological Progress in Agriculture
countries. (MCQ) ➢ Role of Trade and Globalization to
Development
➢ Globalization and Trade Issues and
Concerns
➢ Role of Environment to Development
➢ Environmental Issues and Concerns
➢ Role of Education and Human
Resource to Economic Dev’t

CBM 122 – Economic Development Revision No. 0 Effective: 2nd Semester/ 2022 – 2023 Page 4 of 8
College of Business Administration Education
CBM 122 – Course Syllabus

Assessment Task Details

Assessment Assessment
Coverage Details
Schedule Task

First Exam Definition of Traditional Econ vs. Multiple Choice You are expected to acquire a deeper understanding on
the Contemporary Def’n of Question (MCQ) causes of the underdevelopment in the Third World by
Economic Dev’t understanding first the measures, objectives, and core
Measures of Development Essay value as of development. Further, you are expected to
Objectives of Development have deeper understanding about the common
Core Values of Development characteristics among developing economies, its
Common Characteristics Among physical and human resource endowments, and
Developing countries climatic differences
Physical and Human Resource
Endowments
Relative Level of Per Capita
Income and GNP
Climatic Differences
Population Size, Distribution and
Growth
Second Dialectic Social Dev’t Diagram Essay You are expected to acquire a deeper understanding on
Exam Linear-Stages of Growth Case Study various economic theories that may be helpful in the
Structural Change Models and Oral presentation design of development policies in the less developed
Patterns of development countries such as dialectic social dev’t, linear stages of
International Dependence Models growth, structural change models and patterns of
Neoclassical Counterrevolution development, international Dependence Models,
Underdevelopment as a Neoclassical Counter-revolution. Further topics include
Coordination Failure underdevelopment as a Coordination Failure, multiple
Multiple Equilibria equilibria, big push theory, Kremer’s O-Ring Theory and
Big Push Theory Economic Dev’t as Self-Discovery
Kremer’s O-Ring Theory
Economic Dev’t as Self-
Discovery

Third Exam Development Policies and Essay You are expected to acquire a deeper understanding on
Problems: Problem-Solving Development Policies to address existing challenges
Growth and Equity Issues and problems of economic development. You will be
Basic Concepts of Size and graded according to the following criteria:
Functional distribution of Income a. Depth of the analysis (30 points)
Dualistic Development and b. Coherence of arguments (25 points)
Lorenz Curves c. Citations of related articles (25 pts)
Gini Coefficients and Aggregate d. Academic literacy (10pts.)
Measures of inequality
Role of Economic Analysis –
Redistribution of growth
Policy Options/ Alternatives

Final Exam Role of Agriculture in Economic Presentation of You are expected to acquire a deeper understanding of
Development Term Paper the roles of agriculture, trade and globalization,
Strategies towards Agricultural environment, and education to economic development.
and Rural development You will be required to present your discussion on the
Technological Progress in class, and you will be given 10 minutes to present and
Agriculture answer questions. You will grade according to the
Role of Trade and Globalization following criteria:
to development a. Content (30 pts.)
Globalization and Trade Issues b. Coherence of arguments (30 pts)
and Concerns c. Visual aids (15 pts.)
Role of Environment to d. Ability to answer questions. (25 pts.)
Development
Environmental Issues and
Concerns
Role of Education and Human
Resource to economic
development

CBM 122 – Economic Development Revision No. 0 Effective: 2nd Semester/ 2022 – 2023 Page 5 of 8
College of Business Administration Education
CBM 122 – Course Syllabus

11. COURSE OUTLINE AND TIME FRAME

TIME
TOPICS FOR FIRST EXAMINATION TLA Required Readings
FRAME
Week 1 to ➢ Classroom orientation on University Policies; Know-Want-Learn Dowling, M. J., Valenzuela, M. R., &
Week 3 PEOs, SOs, COs; Core values; and G-Factor) (KWL) Activity Brux, J. M. (2019) Economic
➢ Definition of Traditional Economics vs. the Development.
Contemporary Def’n of Economic Dev’t Small Group Discussion
➢ Measures of Development Singh, C.K. (2018) Introduction to
Lectures
➢ Objectives of Development development economics.
E Learning( Video)
➢ Core Values of Development
➢ Common Characteristics Among Developing
Countries
➢ Physical and Human Resource Endowments
➢ Relative Level of Per Capita Income and
GNP
➢ Climatic Differences
➢ Population Size, Distribution and Growth

TOPICS FOR SECOND EXAMINATION

Week 4 to ➢ Dialectic Social Dev’t Diagram Lectures Best, M. H. (2018) How growth really
Week 5 ➢ Linear-Stages of Growth Small Group happens: the making of economic
➢ Structural Change Models and Patterns of Discussion miracles through production,
Brainstorming
Development governance, and skills.
Library Works
➢ International Dependence Models Burger Activity Liang, J. J. (2018) The
➢ Neoclassical Counterrevolution demographics of innovation: why
➢ Underdevelopment as a Coordination demographics is a key to the
Failure innovation race.
➢ Multiple Equilibria
➢ Big Push Theory
➢ Kremer’s O-Ring Theory
➢ Economic Dev’t as Self-Discovery

TOPICS FOR THIRD EXAMINATION

Week 6 to Development Policies and Problems Lectures 3G E-learning. (2018) Economic
Week 7 ➢ Growth and Equity Issues Small Group policy and growth.
➢ Basic Concepts of Size and Functional Discussion Sumner, A. (2018) Development
Distribution of Income Brainstorming and distribution: structural change in
Library Works South East Asia, 1st.
➢ Dualistic Development and Lorenz Curves
Group Activity
➢ Gini Coefficients and Aggregate Measures
of Inequality
➢ Role of Economic Analysis –
Redistribution of Growth
➢ Policy Options/ Alternatives

TOPICS FOR FINAL EXAMINATION

Week 8 to ➢ Role of Agriculture in Economic E Videos for Learning 3G E-learning. (2018) Economic
Week 9 Development Lectures policy and growth.
➢ Strategies towards Agricultural and Rural Small Group Sumner, A. (2018) Development
Discussion and distribution: structural change in
Development
Brainstorming Southeast Asia, 1st.
➢ Technological Progress in Agriculture Library Works
➢ Role of Trade and Globalization to Group Activity
Development
➢ Globalization and Trade Issues and
Concerns
➢ Role of Environment to Development
➢ Environmental Issues and Concerns
➢ Role of Education and Human Resource
to Economic Dev’t

CBM 122 – Economic Development Revision No. 0 Effective: 2nd Semester/ 2022 – 2023 Page 6 of 8
College of Business Administration Education
CBM 122 – Course Syllabus

12. TEXTBOOK: Dowling, M. J., Valenzuela, M. R., & Brux, J. M. (2019) Economic
Development. Australia: Cengage

References:
1. Dowling, M. J., Valenzuela, M. R., & Brux, J. M. (2019) Economic Development.
Australia: Cengage
2. Liang, J. J. (2018) The demographics of innovation: why demographics is a key to the
innovation race. Hoboken: Wiley
3. Best, M. H. (2018) How growth really happens: the making of economic miracles
through production, governance, and skills. Princeton: Princeton University Press
4. Singh, C.K. (2018) Introduction to development economics. New Delhi: Horizon Press
5. 3G E-learning. (2018) Economic policy and growth. New York, NY: 3G E-learning
6. Sumner, A. (2018) Development and distribution: structural change in Southeast Asia,
1st. Oxford: Oxford University Press

13. COURSE EVALUATION

Assessment Methods
Weights
EXAMINATIONS
A. Exam 1 – 3 30%
B. Final Exam 40%
CLASS PARTICIPATIONS
C. Quizzes, Assignments and Recitation 15%
D. Research 15%
Total 100%

14. POLICIES AND GUIDELINES

a. Attendance is counted from the first regular class meeting.

b. While on campus, all students must always wear a validated student identification card.
c. Cheating is strictly prohibited. Any form of dishonesty shall be dealt with accordingly.
Honesty is called for at all times.
d. Valid examination permits are necessary for taking the examinations as scheduled.
CELLULAR PHONES or any ELECTRONIC GADGETS and PRESCRIBED PRC
CALCULATORS are NOT allowed during EXAMINATIONS.
e. Base 15 grading policy should be observed. Students who obtained failing scores in
major exams are recommended to attend the tutorial class.

CBM 122 – Economic Development Revision No. 0 Effective: 2nd Semester/ 2022 – 2023 Page 7 of 8
College of Business Administration Education
CBM 122 – Course Syllabus

Prepared by: References reviewed by:

LORRAINE GRACE G. UGSANG BRIGIDA E. BACANI

Head-LIC

LEOMAR M. SABROSO, MSAgE

Faculty

Reviewed by: Recommending approval:

LEOMAR M. SABROSO, MSAgE VICENTE SALVADOR E. MONTAÑO, DBA

Business Economics, Program Coordinator Dean

Approved by:

PEDRITO M. CASTILO II, EdD

VP, Institute of Pedagogical Advancement and Competitiveness

CBM 122 – Economic Development Revision No. 0 Effective: 2nd Semester/ 2022 – 2023 Page 8 of 8

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