SEMESTER AT SEA COURSE SYLLABUS. Suggested Pre-requisites: A previous economics or economic history course
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1 SEMESTER AT SEA COURSE SYLLABUS Discipline: Economics Semester and Year: Fall 2012 SEMS : Understanding Economic Development Division: Upper Faculty Name: Colin White Suggested Pre-requisites: A previous economics or economic history course COURSE DESCRIPTION This course focuses on one of the most significant recent events in the world economy the inception of modern economic development. It starts by defining what is meant by modern economic development, with its self-sustaining element of continuing innovation, but its increasing stress on ecological systems. It analyzes the determinants of that economic development, whether proximate, that is inputs and technology as represented in the economist s production function, or ultimate, the longer-term elements dealt with by economic historians, such as resources - seen in the context of the geography of the Eurasian land mass, Africa and the Americas; risk environments; culture or attitudes; the accumulation of human or social capital; and institutions. It considers growth episodes which occurred in the pre-modern period and emphasizes the poverty traps which prevented those episodes initiating modern economic development, notably the Malthusian trap, which reflects a continuing negative interaction between population, resources and the natural environment. The core emphasis is on the analytic narrative as an explanatory tool, combining economic theory and historical narrative, adopting a deliberately comparative approach. It considers the pioneer success of Europe, introducing the Industrial Revolution in Britain and the economic rise of the USA, in the context of the nature of a capitalist market system. It analyses the failure of an alternative, the Soviet economic model, which significantly influenced the pattern of economic development policy in Asia and Latin America, notably Cuba. It considers the slow development of the Latin economies, the lack of economic development in Africa and the coming full circle the temporary success of Europe between two periods of Asian economic dominance. Particular attention is paid to the late starter Japan and to five emerging economies (BRICS) Brazil, Russia, China, India, and South Africa. It explores the implications of the economic rise of Asia and shows how the Asian capitalist market model differs from the European. COURSE OBJECTIVES To define what is meant by economic development, in particular modern economic development To identify the main determinants of economic development, both proximate and ultimate To introduce relevant economic theory relating to economic development 1
2 To outline relevant historical experiences of economic development, dealing with both the capitalist market and the communist planned models of economic development To analyze the experience of economic development in Africa and Latin America To compare the Asian with the European experience and explore the impact of the economic rise of Asia on the world economy REQUIRED TEXTBOOK AUTHOR: White, Colin TITLE: Understanding Economic Development: a global transition from poverty to prosperity? PUBLISHER: Edward Elgar ISBN: (paperback) DATE/EDITION: 2011 COST: $US59.95 TOPICAL OUTLINE OF COURSE: The first three quarters of each class will consist of a lecture and the last half hour an activity involving the students. The classes will be held on B days, between and Class Topic and Questions Student Activity 1. Preliminaries Course guide Introductions (Aug. 26 th ) Introduction 2. What is economic development? Asking a question and writing an essay (Aug.28 th ) Is economic growth a good thing? Reading: White 2011, Chap.1 and 2 Rodrik in electronic file Lewis in electronic file Jones, C. in electronic file Acemoglu in electronic file Sachs in electronic file 3. Convergence and divergence: growth episodes, poverty traps Port introduction and release from the Malthusian Trap and port expectations (Aug.30 th ) Why, before the modern era, did episodes of economic 2
3 growth always end? Which countries have experienced a successful inception of modern economic development? Reading: White 2011, Chaps. 3, 11 Maddison Chap.1, in electronic file, Goldstone in electronic file Clark 2007, Chap. 2 Galway, Dublin and Southampton 4. Why Europe? What can go right: resources, risk, human capital Port review and institutions and port introductions (Sept. 4 th ) How did Europe achieve an economic lead, if temporary? What factors were relevant? Reading: White 2011: 5, 6, 7 and 8 Landes: Chaps. 3, 4 and 14 Pomeranz in electronic file van Zanden in electronic file Antwerp 5. The African experience what can go wrong? Port review (Sept.17 th ) How can we explain the poor performance? What factors were relevant? Reading: Freeman and Lindauer in electronic file Gallup and Sachs, 2000, in electronic file Sachs 2001, in electronic file Landes 1998, Chaps. 25 and 28 Rodrik 2003, Chap. 4 Lisbon Theory 6. The determinants of economic development Port introductions (Sept. 22 nd ) What are the causes of modern economic development? What is the nature of a persuasive explanation? Reading: White 2011, Chap.4. Bairoch, Conclusions Landes 1998, Introduction and Chap. 29 3
4 Cadiz and Casablanca 7. Proximate and ultimate determinants and an analytical narrative Port Review (Oct. 2 nd ) What is the difference between immediate and ultimate (fundamental) causes? What is an analytical narrative? Reading: White 1992, and 2011, Chap. 4 The Historical Experience 8. The Industrial Revolution - innovation, markets and government Port introduction. (Oct. 4 th ) Why was the inception of modern economic development in Britain? What are the relevant factors? Reading: Landes 1998, Chaps. 13 Goldstone Chap. 7 White 2011, Chaps. 9, 10 and China challenge and response Quiz 1 (Oct.7 th ) Why was there no early industrial revolution in China? What are the relevant factors? Reading: Landes 1998, Chap 21 Jones, Frost and White, Chap. 8 Tema 10. The economic rise of the USA Port review (Oct.14 th ) In what sense was economic development diffused from Britain? In what sense was it an indigenous creation? Reading: Landes 1998, Chap. 19 White 2011, Chaps. 9 and 12. Jones, Frost and White, Chap The Soviet Union a narrative: an alternative model and its spread Essay review (Oct.16th) What was the influence of relative backwardness on economic development? Why did revolution occur in Russia and why did it spread? 4
5 Reading: Gerschenkron in electronic file White 2011, Chap. 13 Allen in electronic file Hobsbawm in electronic file Cape Town 12. Coming full circle Port introduction (Oct.23 rd ) Is Asian economic dominance the default option? What caused Asia s temporary lag? Reading: Goldstone, Chaps. 1, 8 and the Conclusion Jones, Frost and White, Chaps. 3, 7 and Abortive take-offs: the Latin American experience Port review (Oct.25 th ) Why has Latin America lagged behind both Europe and Asia? Why has Latin American economic development been so volatile? Reading: Landes, 1998, Chap. 20 White 1992 in electronic file Jones, Frost and White, Chaps. 4 and 6 Maddison 2007, Chap. 2 The Economic Rise of Asia 14. The origins and course of modern economic development Essay progress in Asia (Oct.27 th ) Why did modern economic development occur in Japan before other Asian countries? What advantages did the four Asian tigers have? Reading: Landes Chaps. 22 and 23 Jones, Frost and White, Chap. 7 Krugman in electronic file Crafts in electronic file 15. China the communist phase Quiz 2 (Oct.30 th ) Why did communism spread to China? What was the impact of communism on economic development in China? Reading: Hobsbawm in electronic file Economic Miracles 5
6 16. Economic maturity in Japan Port introduction (Nov.1 st ) What are the difficulties of premature maturity in Japan? Why did Japan not overtake the USA? Reading: Porter et alii in electronic file Bayoumi in electronic file Buenos Aires and Montevideo 17. Institutions and reform Port reviews (Nov.10th) What does the transition from communism tell us about the causes of economic development? Is the mix of market and government important? Reading: White 2011, Chap. 13 Mokyr 2009 in electronic file Rio 18. China reforms and rapid growth (Nov.15 th ) What has been the nature and impact of reform in China? How far has China converged on the developed West? Reading: Ed. Rodrik Chap. 11 Hu, LI and Thornton in electronic file 19. India the British raj, the license raj, reform and accelerating growth Port introduction (Nov.17 th ) Did colonization and decolonization inhibit economic development in India? What has been the changing nature of the Indian economy? Reading: Landes, Chap. 15 Gills and Thompson, Chap. 1 Rodrik, Chaps. 3 and 7 Singh in electronic file Huang and Kanna in electronic file 20. Brazil - a future economic miracle? Port review (Nov.20 th ) Can the improved economic performance of Brazil be sustained? How does the Brazilian model of economic development compare with others? Reading: Maddison, Chap 2. Sec. VII in electronic file 6
7 Baer in electronic file Manaus 21. The return of the Malthusian trap? Port surveys (Nov.25 th ) Does an increasing emphasis on the environment show that there is a new Malthusianism? Is there a population problem, or rather a development problem? Reading: Cline in electronic file Lomborg in electronic file Conclusions 22. Comparison and the analytic narrative Port review (Nov.27 th ) What is the nature of an analytic narrative which explains the causes of modern economic development? Are all the experiences of med so different that they can only be described as unique? Reading: Rodrik ed. Chap. 1 White 2011, Chap The future Reactions (Nov.29 th ) What are the prospects for future economic development? Is convergence the likely outcome? Reading: Gresser in electronic file Ghemawat in electronic file 24. Examination (Dec.4 th ) Roseau FIELD COMPONENT: This will focus on the indicators of economic development, such as the condition of the relevant infrastructures, and on the policies which promote economic development. There will be an emphasis on a comparative approach, using the relative levels of income per head in the relevant port countries and their rates of economic growth. There will be a field laboratory in London, on Sept. 5 th, called The Asian Miracle and the African Failure, which is compulsory. It will involve a visit to the School of Oriental and African Studies, part of London University, where Prof. R.F. Ash will talk about the causes of successful economic development in China and Prof. D. 7
8 Large will talk about economic problems in Africa. Coming towards the beginning of the course this will provide material for all the assignments. METHODS OF EVALUATION: There will be five methods of evaluation. All written work will be returned with a face-to-face follow up. 1. Port activities 20% The students will be asked, first, to indicate by class 3 in writing the factors which they believe will indicate the level of income per head in the port countries and the likely rate of economic growth in those countries, and second, to write up by class 19 how far their expectations have been realized and have produced an accurate indication. 2. Tests 20% There will be two quizzes, at the end of classes 9 and 15. Each of these will consist of 15 multiplechoice and true/false questions and 5 short answers. The quiz will test the students on the material covered in classes 1-9 and respectively. 3. A research paper (essay) 25% The students will be asked to set themselves a relevant question from any topic relevant to economic development but, in conjunction with and the approval of the lecturer. There will be a word limit of 2,000 words to the papers. Credit will be given for the quality of both question and answer. The essay is to be handed in to the lecturer by class An examination 25% The examination will consist of five questions to be completed in 75 minutes. These will test conceptual understanding. There will be a choice from eight questions. 5. Participation 10% 5% of the score will be awarded on attendance and the other 5% on the basis of active participation in class and the engagement with the lecturer during office hours. Participation includes questions and comments made during the class and the degree of interest displayed both inside and outside the class, notably in consultation with the lecturer during office hours. The basis for the evaluation scale is: 0 = no participation or engagement, very poor attendance, 1 = poor attendance, participation and engagement, 2 = moderate attendance, participation and engagement, 3 = about average attendance, participation and engagement, 4 = good attendance, participation and engagement, and 5 = perfect attendance and excellence participation and engagement. RESERVE LIBRARY LIST 8
9 AUTHOR: J. Goldstone TITLE: Why Europe? The rise of the West in world History, PUBLISHER: McGraw Hill ISBN #: DATE/EDITION: 2009 COST: $26.08 AUTHOR: E. L. Jones, Frost, L. and White, C. TITLE: Coming Full Circle: an economic history of the Pacific Rim PUBLISHER: Westview Press, Boulder ISBN #: X or DATE/EDITION: 1993 COST: $12 AUTHOR: Landes, D. TITLE: The Wealth and Poverty of Nations: why some are so rich and some so poor PUBLISHER: W. W. Norton ISBN #: DATE/EDITION: 1998 COST: $12.76 AUTHOR: ed. Rodrik, D. TITLE: In Search of Prosperity: analytic narratives on economic growth PUBLISHER: Princeton University Press, Princeton and Oxford ISBN: or DATE/EDITION: 2003 COST: $44.22 AUTHOR: Maddison, A. BOOK TITLE: Contours of the World Economy, AD: essays in macro-economic history PUBLISHER: Oxford University Press, Oxford ISBN: (paperback) DATE: 1 st ed., 2007 COST: $39.81 ELECTRONIC COURSE MATERIALS AUTHOR: Acemoglu, D. CHAPTER TITLE: Chap. 1 Economic growth and economic development: the questions BOOK TITLE: Introduction to Modern Economic Growth (Princeton University Press) DATE/EDITION: 1 st Ed PAGES:
10 AUTHOR: Rodrik, D. CHAPTER TITLE: Chap. 1 Fifty Years of Growth (and lack thereof): an interpretation BOOK TITLE: One Economics Many Recipes (Princeton University Press) VOLUME/DATE: 1 st Ed PAGES: AUTHOR: Lewis, W. A. ARTICLE: Economic development with unlimited supplies of labor JOURNAL TITLE: Manchester School of Economics and Social Studies VOLUME: vol. 22 DATE: 1954 PAGES: AUTHOR: C. I. Jones CHAPTER TITLE: Introduction: the facts of economic growth BOOK TITLE: Introduction to Economic Growth DATE/EDITION: 2 nd Ed PAGES: 1-19 AUTHOR: Sachs, J. CHAPTER TITLE: Chap. 2, The spread of economic prosperity, and Chap. 3, Why some countries fail to thrive BOOK TITLE: The End of Poverty: how we can make it happen in our lifetime DATE: 2005 PAGES: AUTHOR: Maddison, Angus CHAPTER TITLE: Chap. 1, The contours of world development SECTION TITLE: Chap. 2, Section VII: The Portuguese in Brazil BOOK TITLE: The World Economy, Vol. 1: A Millennial Perspective DATE: 2006 PAGES: 29-50, AUTHOR: Goldstone, J. A. ARTICLE TITLE: Efflorescences and economic growth in world history: rethinking the rise of the West and the Industrial Revolution JOURNAL TITLE: Journal of World History VOLUME: vol. 13, no. 2 DATE: 2002 PAGES: AUTHOR: Clark, Gregory TITLE: Chap. 2 The Logic of the Malthusian Economy BOOK TITLE: A Farewell to Alms: a brief economic history of the world DATE/EDITION: 1 st Ed
11 PAGES: AUTHOR: Van Zanden, J. L. CHAPTER TITLE: Part 3: Introducing the problem: the birth of the European Knowledge Economy BOOK TITLE: The Long Road to the Industrial Revolution DATE/EDITION: 1 st Ed PAGES: AUTHOR: Pomeranz, Kenneth CHAPTER TITLE: Introduction: comparisons, connections, and narratives of European economic development BOOK TITLE: The Great Divergence: Europe, China, and the making the modern world economy DATE/EDITION: 1 st Ed PAGES: 3-27 AUTHOR: Freeman, R. B. and Lindauer, D. L. ARTICLE: Why not Africa? JOURNAL TITLE: National Bureau of Economic Research VOLUME: Working Paper Series, No DATE: 1999 CHAPTER AUTHOR: Gallup, J.L and Sachs, J.D ARTICLE: Agriculture, climate, and technology: why are the tropics falling behind? JOURNAL: American Journal of Agricultural Economics VOLUME: 82(3) DATE: 2000 PAGES: AUTHOR: Sachs, J.D TITLE: Tropical Underdevelopment JOURNAL: National Bureau of Economic Research VOLUME: Working Paper 8119 DATE: 2001 AUTHOR: White, C.M. ARTICLE TITLE: The proper concerns of economic history ultimate and proximate growth causality JOURNAL TITLE: Scandinavian Economic History Review, and Economy and History VOLUME: XL, no. 2 DATE: 1992 PAGES: AUTHOR: Gerschenkron, A. 11
12 CHAPTER TITLE: Economic backwardness in historical perspective BOOK TITLE: Economic Backwardness in Historical Perspective (Belknap Press, Cambridge, Mass.) DATE: 1962 PAGES: 5-30 AUTHOR: Hobsbawm, E. CHAPTER TITLE: The World Revolution, Chap. 2 BOOK TITLE: Age of Extremes: the short twentieth century (Michael Joseph) DATE/EDITION: 1 st Ed AUTHOR: Krugman, P. ARTICLE TITLE: The myth of Asia s miracle: a cautionary fable JOURNAL TITLE: Foreign Affairs VOLUME: 73(6) DATE: 1994 PAGES: AUTHOR: Crafts, Nicholas ARTICLE TITLE: East Asian Growth before and after the Crisis JOURNAL TITLE: IMF Working Paper VOLUME: WP/98/137 DATE: 1998 PAGES: 45 pages AUTHOR: Robert C. Allen CHAPTER TITLE: Chap. 1, Soviet development in world-historical perspective BOOK TITLE: Farm to Factory: a reinterpretation of the Soviet Industrial Revolution DATE: 2003 PAGES: 1-17 AUTHOR: White, Colin CHAPTER TITLE: Chap. 15, A proper comparison BOOK TITLE: Mastering Risk: environment, markets and politics in Australian economic history DATE: 1992 PAGES: AUTHOR: Baoyumi, Tamim ARTICLE TITLE: The Morning After: explaining the slowdown in Japanese growth in the 1990s JOURNAL: IMF Working Paper VOLUME: WP/99/13 DATE: January 1999 PAGES:
13 AUTHOR: Singh, Nirvikar ARTICLE TITLE: Miracles and reforms in India: policy reflections JOURNAL TITLE: Asian Survey VOLUME: vol. 42, no. 5 DATE: Sept/Oct 2002 PAGES: AUTHOR: Yasheng Huang and Tarun Khanna ARTICLE: Can India overtake China? JOURNAL TITLE: Foreign Policy DATE: July-August 2003 PAGES: AUTHOR: Porter, M., Takeuchi, H. and Sakakibara, M CHAPTER TITLE: Chap. 2 Challenging the Japanese Government Model BOOK TITLE: Can Japan Compete? (Macmillan) DATE: 2000 PAGES: AUTHOR: Angang Hu, Cheng Li and Thornton, J.L. CHAPTER TITLES: Ch. 1 China, an emerging superpower, Ch. 2 Economic development: past, present and future BOOK TITLE: China in 2020: a new type of superpower DATE: 2011 PAGES: 1-22, AUTHOR: Mokyr, J. CHAPTER TITLE: Introduction: ideology, knowledge, and institutions in economic change BOOK TITLE: The Enlightened Economy: an economic history of Britain DATE: 2009 PAGES: 1-12 AUTHOR: Bairoch, P. CHAPTER TITLE: Conclusions BOOK TITLE: Economics and World History PUBLISHER: The University of Chicago Press DATE: 1993 PAGES: AUTHOR: Baer, W. CHAPTER TITLE: Chap. 1, Introduction BOOK TITLE: The Brazilian Economy: growth and development PUBLISHER: The University of Chicago Press DATE/EDITION: 6 th ed
14 PAGES: 1-12 AUTHOR: Lomborg, B. CHAPTER TITLE: Chap 2. It s getting hotter: the short story BOOK TITLE: Cool It: the skeptical environmentalist s guide to global warming PUBLISHER: Vintage Books DATE/EDITION: 2008 PAGES: AUTHOR: Cline, W. R. CHAPTER TITLE: Chap 1. Climate Change BOOK TITLE: Global Crises, Global Solutions (ed. Lomborg, B.) PUBLISHER: Cambridge University Press DATE/EDITION: 2004 PAGES: AUTHOR: Gresser, Edward ARTICLE TITLE: The emerging Asian union JOURNAL TITLE: The China Business Review VOLUME: vol. 31, no. 4 DATE: Jul/Aug 2004 PAGES: AUTHOR: Ghemawat, P. CHAPTER TITLE: Chap. 2 Semi-globalization and Strategy BOOK TITLE: Redefining Global Strategy: crossing borders where difference still matter DATE: 2007 PAGES: 9-32 None ADDITIONAL RESOURCES 14
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