The Political Economy of Development As of 11/03/04 Amherst College Prof. Javier Corrales Political Science 15, Fall 2004 Clark House 202 Tue and Thu 2+ x2164 Course website: blackboard.amherst.edu jcorrales@amherst.edu http://www.amherst.edu/~jcorrale Office Hrs: W 9 10 AM, 1:30 3 PM Course Description This course surveys some of the principal themes in the political economy of lower income countries. Questions will cover a broad terrain. What are the key characteristics of poor economies? Why did these countries fail to catch up with the West in the 20 th century? Who are the key political actors? What are their beliefs, ideologies and motivations? What are their political constraints, both locally, nationally and globally? We will review arguments about the causes of wealth and poverty of nations, the role of ideas, positive and dysfunctional links between the state and business groups, the role of non state actors, the causes and consequences of poverty, inequality, disease and corruption, the impact of financial globalization and trade opening, and the role of the IMF and the World Bank. We will also look at the connection between regime type and development (are democracies at a disadvantage in promoting development?). We will also devote a couple of weeks to education in developing countries. We know education is a human good, but is it also an economic good? Does education stimulate growth? What are the obstacles to education expansion? We will not focus on a given region, but rather on themes. Familiarity with the politics or economics of some developing country is helpful but not necessary. Course Requirements Attendance: All students are required to come to class having completed the readings for that class meeting. Class attendance is mandatory. I will only allow one absence per semester. Additional absences will lower significantly your participation grade. Participation: Class participation will count 15 percent of your grade. Attendance is not the same as participation. The latter is the extent to which you make a qualitative contribution to the discussion in progress. It entails addressing the issues raised by me and your classmates, as well as raising your own issues, when pertinent. I will never call on you to participate; it is ultimately your responsibility to be heard in class. The point is not to speak for the sake of speaking (or to impress me), but rather to contribute with a different or a supplementary perspective. Lead Discussants: At the beginning of the semester, you will be assigned to one of five groups of lead discussants. On designated class meetings, lead discussants will be expected to participate more actively and be better prepared than the rest of the class. The list of assignments indicates what days each group is expected to take the lead. Each lead discussant will submit a 1 to 2 page discussion paper, due by 10am the day you are scheduled to serve as lead discussant. These papers should be based on the
2 readings assigned for the day that you submit your paper. These are not just summary papers. You should try instead to compare causal arguments offered by different authors or apply causal arguments to cases, or even better, to identify shortcomings in the arguments. I will read the papers before class and use them to prepare discussions. The papers will not be graded in the conventional way (you will get a check plus, check, or check minus), but they will be part of your participation grade. Papers: All students are required to write four 5 page papers. I will only grade three of those papers: the first two and either paper 3 or 4. You will decide at the end of the course which paper (3 or 4) you would like me to grade. Topics for all papers will be distributed at least one week prior to the due date. Papers will be based on class material; no outside research is necessary. Readings This is a heavy reading course. You should be prepared to read approximately 70 80 pages per class meeting. Most readings are contained in a multilith, available for purchase from the Political Science Department during normal business hours. Please contact Ms. Victoria Farrington, Assistant to the Chair (vmfarrington@amherst.edu). In addition, the following books are required; they are available for purchase at Jeffrey Amherst Bookshop and College Store, 26 So. Prospect Street, 253 7816, www.jeffbooks.com Corrales, Javier. 2002. Presidents Without Parties. University Park, PA: Penn State University Press. Easterly, William. 2001. The Elusive Quest for Growth. Cambridge, MA: The MIT Press. Goddard, C. Roe, Patrick Cronin and Kishore C. Dash. 2003. International Political Economy: State Market Relations in a Changing Global Order, 2 nd Ed., Boulder, CO: Lynne Rienner. My Participation One objective of class discussion is to allow me to respond to your own comments. I want to make everyone feel comfortable participating. But at the same time, I must correct comments for factual errors or faulty logic, and sometimes challenge them. Please do not take offense by my corrections, or be discouraged to participate in fear of being corrected. I do not expect your comments to be perfect. I simply expect you to be engaged. In assessing participation grade, I look for relevance, not necessarily accuracy. Academic Conduct Plagiarism of any kind is strictly forbidden. There has been a recent surge in plagiarism at Amherst and in other colleges. We are all on alert. Remember, you are expected to discuss (not restate) the ideas of other authors. There is no need to do outside reading for this class, but you still want to make sure that you are clear about the ideas that are yours and those that belong to others. When in doubt, indicate sources. You are strongly advised to read about plagiarism at Amherst on line: http://www.amherst.edu/~dos/plagiarism/index.html
3 Etiquette: Please arrive punctually. Do not sleep, or chat with your neighbors. Be respectful of others. Raise your hand and wait for your turn to speak. Do not interrupt others, but feel free to interrupt me if I seem to be moving on to a new topic and you are not ready to move on. If you need to leave early, please let me know before the beginning of class. Extensions My policy is simple: no extensions will be granted, except in extreme circumstances. Late papers will be marked down.
4 List of Assignments (P) = Book for Purchase Class meeting Tue Sep 7 Thu Sep 9 Reading Assignment Introduction: It s all about growth, growth and? No Class Work due Section 1: Political Determinants and Consequences of Economic Growth Tue Sep 14 Thu Sep 16 G 2 Tue Sep 21 G 3 Thu Sep 23 G 4 Development Today and in 2015 (P) Gilpin, Robert. The Nature of Political Economy. In Goddard et al., pp. 9 24. (P) Easterly, Chapter 1, pp. 1 19. UNDP. 2003. Human Development Report 2003. Chapter 2, pp. 33 65 (handout). Modernization Theory Gerchenkron, Alexander. 1966. Economic Backwardness in Historical Perspective. The Belknap Press, pp. 5 30. Rostow, W.W. 1971. The Stages of Economic Growth. New York: Cambridge University Press, pp. 4 12. Lipset, Seymour Martin. 1963. Political Man. The Social Bases of Politics. Baltimore: Johns Hopkins Univ. Press, pp. 27 58. Challenges to Mod. Theory (from the left and the right) Huntington, Samuel J. 1968. Political Order in Changing Societies. Yale University Press, pp. 1 8, 32 39, 47 56. (P) Karl Marx and Friedrich Engels. 1867/1848. Excerpts from Capital and the Communist Manifesto. In Goddard et al., 151 165. (P) Dos Santos, Theotonio. 1970. The Structure of Dependence in Goddard et al., 167 177. (P) Amin, Samir. 1997. The Future of Global Polarization. In Goddard et al., 179 189. (P) Went, Robert. 2000. Globalization Under Fire. In Goddard et al., pp. 191 211. Challenges to Dependency Theory World Bank. 1993. The East Asian Miracle. Summary. A World Bank Policy Research Report. Washington, D.C. The World Bank, pp. 6 34. Krueger, Anne O. 1990. Government Failures in Development. Journal of Economic Perspectives 4, 3, Summer, pp. 9 23 Firebaugh, Glenn. 1992. Growth Effects of Foreign and Domestic Investment. American Journal of Sociology 98, 1, pp. 105 130. (P) Corrales, Javier. 2002. Presidents Without Parties, pp. 77 93.
5 Tue Sep 28 Session (2 4:20pm) Thu Sep 30 Tue Oct 5 G 2 Oct 9 and 12 Thu Oct 14 G 3 and 4 Session Tue Oct 19 Session Thu Oct 21 Guest Lecturer: Frank Westhoff on Regression Analysis And The Washington Consensus Bierkester, Thomas J. 1995. The Triumph of Liberal Ideas in the Developing World. in Barbara Stallings, ed. Global Change, Regional Responses. Cambridge University Press, pp. 174 196 (P) Corrales, pp. 3 74. Rebuttal 1: Revisiting Globalization Hirst, Paul and Grahame Thompson. 2002. The Limits to Economic Globalization. In Held and McGrew, eds. The Global Transformation Reader. Second Edition, Cambridge, UK: Polity Press, pp. 335 348. Stallings, Barbara. 2003. Globalization and Liberalization: The Impact on Developing Countries. In Atul Kohli, et al., eds., States, Markets and Just Growth. New York: The United Nations Press, pp. 9 38. Wade Robert vs. Martin Wolf. 2002. Are Global Poverty and Inequality Getting Worse? In David Held and Anthony McGrew, eds. The Global Transformation Reader. Second Edition, Cambridge, UK: Polity Press, pp. 440 446. Chua, Amy. 2002. Markets, Democracy and Ethnicity. In Sunder Ramaswamy and Jeffrey W. Cason, eds., Development and Democracy. Middlebury College Press, pp. 145 167. Rebuttal 2: It s the state (P) Evans, Peter. States and Industrial Transformation. In Goddard, pp. 119 139. Stiglitz, Joseph. 1996. Some Lessons from the East Asian Miracle. World Bank Research Observer 2 (August):151 177. (P) Lindsey, Brink. The Invisible Hand vs. the Dead Hand. In Goddard, pp. 59 70. (P) Easterly, Chapter 10. No Classes Rebuttal 3: Is it the regime? Olson, Mancur. 2000. Power and Prosperity. Basic Books, pp. 1 43. Sen, Amartya. 1994. Freedoms and Needs. The New Republic, Nos. 2 and 3 (January):31 38. Przeworski, Adam, Michael E. Alvarez, Jose Antonio Cheibub, and Fernando Limongi. 2000. Democracy and Development: Political Institutions and Well Being in the World, 1950 1990. New York: Cambridge University Press, pp. 78 117, 136 137, 269 278. Rebuttal 3 cont d: Haggard, Stephan. 2000. The Political Economy of the Asian Crisis. Journal of Democracy 11, 2 (April):130 144. Rebuttal 4: Institutions World Bank. 2001. Building Institutions for Markets. World Development Report 2002. pp. 99 116 Tue Sep 28 Evening Lecture: Joshua Goldstein Mon Oct 4 Paper 1
6 North, Douglass, William Summerhill and Barry R. Weingast. 2000. Order, Disorder, and Economic Change: Latin America versus North America. In Bruce Bueno de Mesquita and Hilton L. Root, eds. Governing for Prosperity, Yale University Press, pp. 17 59. Acemoglu, Daron, Simon Johnson, and James A. Robinson. 2003. An African Success Story: Botswana. In Dani Rodrik, ed., In Search of Prosperity. Princeton University Press, pp. 80 119. Tue Oct 26 G 2 Thu Oct 28 G 3 Tue Nov 2 G 4 Thu Nov 4 Tue Nov 9 Thu Nov 11 Tue Nov 16 G 2 and 3 Weak Institutions I: Parties (P) Corrales pp. 97 209. Moore, Mick and Howard White. 2003. Meeting the Challenge of Poverty and inequality. In Atul Kohli, et al., eds., States, Markets and Just Growth. New York: The United Nations Press, pp. 64 93. Weak Institutions III: Parties (P) Corrales, pp. 211 284. Kingstone, Peter. 1998. Constitutional Reform and Macroeconomic Stability: Implications for Democratic Consolidation in Brazil. In Philip Oxhorn and Pamela Starr, eds. Markets and Democracy in Latin America, pp. 133 162. GO VOTE! Weak Institutions IV: Civil Wars and (Under)development (P) Easterly, Chapter 13, pp. 255 283 Muller, Edward and Mitchell Seligson. 2003 (1987). Inequality and Insurgency. In Selligson and Passé Smith, eds., Development and Underdevelopment, 3 rd Edition, Lynne Rienners, pp. 83 99. Collier, Paul. 2003. The market for civil wars. Foreign Policy, May/June. Cases Colombia, Indonesia, Lebanon No Class External Actors, the IMF, and Development Guest Lecturer: Arvind Subramanian, IMF (P) Easterly, William. Chapters 2, 6 and 7. (P) Gooddard, C. Roe. The International Monetary Fund. In Goddard et al., pp. 241 268. (P) Dash, Kishore. The Asian Economic Crisis and the Role of the IMF. In Goddard, pp. 269 291. Birdsall, Nancy and Arvind Subramanian. 2004. Saving Iraq from its Oil Foreign Affairs 83, 4: 77 89. Vasquez, Ian. 1997. The IMF through a Mexican Lens. Orbis 41, 2 (Spring):259 276. Education Reform I Hannum, Emily and Claudia Buchmann. 2003. The Consequences of Global Educational Expansion. Cambridge, Fri Oct 29 Paper 2 Mon Nov 1 Paper 2 Fri Nov 5 Paper 2 Wed Nov 17 Evening Lecture:
7 Session Thu Nov 18 G 4 Nov 23/25 Tue Nov 30 Thu Dec 2 and 2 Tue Dec 7 G 3 and 4 Thu Dec 9 Tue Dec 14 MA; American Academy of Arts and Sciences. (P) Easterly, Chapter 4. Weiner, Myron. 1991. The Child and the State in India. Princeton University Press, pp. 3 15 Education Reform II Weiner, Myron. 1991. The Child and the State in India. Princeton University Press, pp. 109 153, 180 207. Ramachandran, V.K. 2000. Human Development Achievements in and Indian State: A Case Study of Kerala. In Dharam Ghai, ed., Social Development and Public Policy. St Martin s Press. Thanksgiving Education Reform III Colclough, Christopher and Samer Al Samarrai. 2000. Achieving Schooling for All: Budgetary Expenditures on Education in Sub Saharan Africa and South Asia. World Development. 28, 11:1927 1944. Nylen, William. 2002. Testing the Empowerment Thesis: The Participatory Budget in Below Horizonte and Betim, Brazil. Comparative Politics 34, 2 (January):127 143. Reading TBA. More on the IMF Roggoff, Kenneth. 2003. The IMF Strikes Back. Foreign Policy, January/February, pp. 39 46. Sachs, Jeffrey. 2004. How to Run the IMF. Foreign Policy. July/August. Vreeland, James R. 2003. The IMF and Economic Development. Cambridge University Press, pp. 1 52. More on the IMF More on the IMF Readings TBA Prof. Patrick McEwan, Wellesley College Fri Nov 19 Paper 3 Final Paper TBA