The principle of development economics are key to understanding how we got to where we are, and why many development problems are so difficult to solve, and to the design of successful development policy and programs.

The first goal of this course is to ensure that students understand real conditions and institutions across the developing world. The second is to help students develop analytic skills while broadening their perspectives of the wide scope of the field. The third is to provide students with the resources to draw independent conclusions as they confront development problems, their sometimes ambiguous evidence, and real-life development policy choice.

On successful completion of this course, students will be able to: 1. Demonstrate familiarity with some central themes and issues of economic development. 2. Demonstrate the understanding of the difference between growth and development, major growth theories, the measurement of inequality, significance of poverty, international trade, and role of foreign investments. 3. Discuss competing theories of economic development; 4. Analyse empirical evidence on the patterns of economic development. 5. Read critically the journal literature and draw independent conclusions as they confront development problems, their sometimes ambiguous evidence, and real-life development policy choice (also thanks to the 6-8 training sessions held in collaboration with UNCTAD). 

On a voluntary base, students can also attend the Polimi MOOC "Entrepreneurship without borders" (and participate in the final UNCTAD competition). 

1. Introducing Global Development

Traditional economic measures and the new economic view of development. The Millennium Development Goals.

Textbooks: Todaro M.P., Smith S.C. Economic Development, 12^th Edition. Addison Wesley, ch.1-2

De Janvry A., Saudolet E. (2016). Development Economics: Theory and Practice. Routledge, ch. 1.

Readings

Sachs JD, Mellinger AD, Gallup JL. 2001. The geography of poverty and wealth. Scientific American. March; 284(3):70-5. 

2. Poverty, inequality and development

Measuring inequality and poverty.

Textbook: Todaro M.P., Smith S.C. Economic Development, 12th Edition. Addison Wesley, ch. 5

Readings

Foster J., Seth S., Lokshin M., Sajaia Z. 2013. A unified approach to measuring poverty and inequality. Theory and practice. The World Bank.

3. Classic Theories of Economic Growth and Development

Development as growth and the linear stages theories. Structural change models. The international-dependence revolution, and the neoclassical counterrevolution.

Textbook: Todaro M.P., Smith S.C. Economic Development, 12th Edition. Addison Wesley, ch. 3

4. Contemporary Models of Development and Underdevelopment

Underdevelopment as a coordination failure. The Big-Push. Amartya Sen: The capability approach.

Textbook: Todaro M.P., Smith S.C. Economic Development, 12th Edition. Addison Wesley, ch. 4

Readings

Easterly W. 2006. Reliving the 1950s: the big push, poverty traps, and takeoffs in economic development, Journal of Economic Growth, Volume 11, Issue 4, pp 289–318

5. Institutions and development

Textbook: De Janvry A., Saudolet E. (2016). Development Economics: Theory and Practice. Routledge, chapter 20.

Readings

Abramovitz, M. (1986). Catching Up, Forging Ahead, and Falling Behind. Journal of Economic History, 46:2, pp. 385-406.

Acemoglu D., Smith J. The role of institutions in growth and development, Review of Economics and Institutions,  2010, vol. 1, no. 2, pp. 1-33.

Acemoglu D., Johnson S., Robinson J. 2001. The colonial origins of Comparative Development: An Empirical Investigation, American Economic Review, Vol. 91, No. 5 (Dec., 2001), pp. 1369-1401.

6. Changing landscapes: Key issues for achieving sustainable development [by 2030] - in collaboration with UNCTAD (Dr. Fulvia Farinelli)

Laboratory [with individual and group exercises] on: 1. The role of the private sector in achieving the SDGs; 2. The emergence of new business models for sustainable development; 3. The importance of innovation and soft entrepreneurial skills to address the global development challenges; 4. Promoting sustainable efficiency; 5. Generating new business opportunities with social impact.

Readings

UN Global Compact (2015), Impact: Transforming Business, Changing the World, https://www.unglobalcompact.org/library/1331

Michael E. Porter and Mark R. Kramer (2011), “Creating Shared Value: How to reinvent capitalism—and unleash a wave of innovation and growth”, Harvard Business Review

http://www.nuovavista.com/SharedValuePorterHarvardBusinessReview.PDF

Ingrid Burkett Knode (2017), Using the Business Model Canvas for social enterprise design

http://cscuk.dfid.gov.uk/wp-content/uploads/2016/07/BMC-for-Social-Enterprise.pdf

7.International Trade Theory and Development Strategy

Traditional trade strategies for development: Export promotion vs. import substitution. South-south trade and economic integration

Textbook: Todaro M.P., Smith S.C. Economic Development, 12th Edition. Addison Wesley, chapter 12

Readings

Harrison A. 1996. Openness and growth: A time-series, cross-country analysis for developing countries, Journal of development Economics 48 (2), 419-447

Hanson GH, Harrison A. 1999. Trade liberalization and wage inequality in Mexico, ILR Review 52 (2), 271-288.

8. Multinational Enterprises, Global Value Chains, and local development.

Textbook: Todaro M.P., Smith S.C. Economic Development, 12th Edition. Addison Wesley, chapter 14

Readings

Aitken B.J., Harrison A.E.  1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, vol. 89(3), pages 605-618. 

Haddad M, Harrison A. 1993. Are there positive spillovers from direct foreign investment?: Evidence from panel data for Morocco, Journal of development economics, 42 (1), 51-74.

Eskeland GS, Harrison AE. 2003. Moving to greener pastures? Multinationals and the pollution haven hypothesis, Journal of development economics, 70 (1), 1-23.

9. Impact evaluation of development policies and programs

Textbook: De Janvry A., Saudolet E. (2016). Development Economics: Theory and Practice. Routledge, ch. 4.

Readings

Galiani S., Gertler P., Schargrodsky E. (2005), Water for life: The impact of the privatization of water services on child mortality, Journal of Political Economy 113(1): 83-120.

Guidolin M., La Ferrara E. 2007, Diamonds are forever, wars are not: is conflict bad for private firms?, American Economic Review, 97(5): 1978-93.

No particular pre-requisites.

Assessment:

The exam could be undertaken with two different modalities

Type 1:

The exam is constituted by a presentation (30%) on part 6 - Laboratory on Changing landscapes in mid April (April 15-16) + one test (30%) at the beginning of May (May 7) + a final test (40%) in the first week of June (June 7)

 Type 2:

Written exam in the regular sessions (June 17, July 15, September 3)

 Obviously, type 1 is more likely to be chosen by attending students; however, as attendance is not compulsory, any student can in principle select either type 1 or type 2.

Honor Program Students (5 ECTS)

 The exam could be undertaken with two different modalities

 Type 1 is exactly the same as for the other students

 Type 2: Written exam in the regular sessions (June 17, July 15, September 3) do not include section 6 of the programme.