COURSE DESCRIPTION

This course is an introduction to the study of the

economic circumstances and problems of low and
middle-income economies.
It considered the contributions economic analysis can
make to explaining why some nations are poor and
others rich.
It reviews alternative theories of economic growth
and examines a number of specific issues central to the
lives of the more than 5.5 billion people who live in
the developing world. Topics to be covered are:
1) The role of economic development in “development”
and poverty reduction (Poverty-Growth-Inequality
Triangle, SDGs);
2) The evolution of economic development thoughts;
3) The stylized facts in economic development (open and
closed questions);
4) Theories of development (traditional and new growth
theories);
5) Dualistic development and structural change (growth,
poverty, and income distribution; rural-urban dichotomy);
6) Financing development (capital and saving, financial
system and development);
7) Guiding development―markets vs. controls (the role
of government in development, good governance);
8) Development and institutions;
9) New development challenges in the 21st century
(globalization, international economic system,
development and environment, and Sustainable
Development Goals, etc.)
 DEVELOPMENT
According to Todaro’s Development is?
1. Raising peoples’ living levels, i.e. incomes and
consumption, levels of food, medical services, education
through relevant growth processes
2. Creating conditions conducive to the growth of peoples’
self-esteem through the establishment of social, political and
economic systems and institutions which promote human
dignity and respect
3. Increasing peoples’ freedom to choose by enlarging the
range of their choice variables, e.g. varieties of goods and
services
 WHAT IS DEVELOPMENT
ECONOMICS?
Development economics is a branch of economics
that focuses on improving fiscal, economic, and social
conditions in developing countries. Development
economics considers factors such as health, education,
working conditions, domestic and international
policies, and market condition with a focus on
improving conditions in the world's poorest countries.
The field also examines both macroeconomic and
microeconomic factors relating to the structure of
developing economies, and domestic and international
economic growth.
Macroeconomics refers to broadly influencing factors
such as interest rates, whereas microeconomics relates
to individual influences.
 HISTORY OF DEVELOPMENT
ECONOMICS
Development economics as a discipline first arose in
the 1950s. However, earlier theories pointing towards
this discipline started as early as the Seventeenth
Century with the rise of the nation-state.
Such approaches included Mercantilism and
economic nationalism.
The 1950s saw the development through efforts of
theorists such as W.W. Rostow who suggested that
economic growth passes through five linear processes.
These processes include the
1. traditional society,
2. preconditions,
3. take-off,
4. maturity,
5. high-mass consumption.
Currently, the discipline is receiving a lot of attention
and plays a significant role development research.
 ECONOMIC DEVELOPMENT
Economic development is the process by which the economic
well-being and quality of life of a nation, region or local
community are improved. The term has been used frequently in
the 20th and 21st centuries, but the concept has existed in the
West for centuries.
The role of economic development are:
price stability,
high employment, and sustainable growth.
Such efforts include monetary and fiscal policies,
regulation of financial institutions,
trade, and tax policies.
Job creation and retention through specific efforts in
business finance,
marketing,
neighbourhood development,
workforce development,
small business development,
business retention and expansion,
technology transfer, and real estate development.
 Growth-Inequality-Poverty Triangle
Growth-Inequality-Poverty Triangle or GIP Triangle
refers to the idea that a country's change in poverty can
be fully determined by its change in income growth
and income inequality. According to the model, a
development strategy must then also be based on
income growth and income inequality.
THE END