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International Development Economics

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Back again with the meal deal prices! I am proud to say that this module is over for me, but without my work in creating this resource to assist in my learning of development economic theory, I would have been toast! This document consists of 73 pages detailing causes, theoretical solutions, impact...

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  • 23 mei 2023
  • 73
  • 2022/2023
  • College aantekeningen
  • Robert mullings
  • Alle colleges
  • Onbekend
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Table of Contents
1.1 Part A (Logue, 2023)...................................................................................................................4
1.2 Poverty and Economic Development.....................................................................................4
1.2.1 Poverty Overview......................................................................................................................4
1.2.2 Overview of the UN Development Goals to tackle poverty over the Years............4
1.2.3 Africa Poverty Overview.........................................................................................................5
1.2.5 Calculating the Poverty Line.................................................................................................5
1.2.6 Purchasing Power Parity (PPP)...........................................................................................9
1.2.7 Traditional economic measures of Development:......................................................10
1.2.8 HDI and “Capability” Theory..............................................................................................10
1.2.9 Data on Low-Income Countries.........................................................................................11
1.2.10 Poverty Charts......................................................................................................................12
1.2.11 Ways to Measure Inequality:...........................................................................................14
1.3 Randomised Control Trials (RTCs)......................................................................................15
1.3.1 What are RTCs?.......................................................................................................................15
1.3.2 Recommended RTCs to Reduce Poverty..........................................................................16
1.3.3 A Note on the Lingo: A few initial important terms....................................................16
1.3.4 Selection Biases, Characteristics and Groups...............................................................17
1.3.5 RTC Pitfalls...............................................................................................................................18
1.3.6 Ethical issues with RTCs.......................................................................................................18
1.3.7 Social Issues with RTCs.........................................................................................................19
1.3.8 Arguments of RTCs.................................................................................................................19
1.3.9Alternatives to RTCs...............................................................................................................21
1.4 Education......................................................................................................................................22
1.4.1 MDGs, SDGs and Education Targets.................................................................................22
1.4.2 Education Problem for Child Development...................................................................22
1.4.3 What is the Problem for children entering Primary education?...........................23
1.4.4 Investments in Childhood Development Impact..........................................................25
1.4.5 Importance of Quality Education......................................................................................26
1.4.6 Tackling the Issue of Quality..............................................................................................27
1.4.7 Importance of Secondary/ Tertiary Education............................................................28

,1.4.8 S-Shaped Curve - EVAL Point...............................................................................................31
1.4.9 Private and Public Schooling Disparity..........................................................................32
1.4.10 A Link Between Poverty, Fertility and Family Size...................................................33
1.5 Fertility and Population Growth...........................................................................................34
1.5.1 Key Concepts and SDGs Relating to Fertility.................................................................34
1.5.2 Population and Fertility Graphs.......................................................................................35
1.5.3 The Malthusian Trap.............................................................................................................38
1.5.4 How to Escape the Population Trap.................................................................................40
1.5.5 Criticisms of the Malthusian Model..................................................................................41
1.5.6 Developing Countries Fighting Against the Malthusian Trap................................42
1.5.7 MATLAB Program - Driving Social Change...................................................................42
1.5.8 Profamilia Program - Helping Women Access Contraception................................44
1.5.9 China Example - Low Fertility and Higher Savings.....................................................45
1.5.10 Cause of High Fertility Rates............................................................................................45
Part B (Mullings, 2023)...................................................................................................................46
1.6 Classical Theories of economic development. Reason to explain the difference in
growth between different countries...........................................................................................46
1.6.1 Historical Worldwide Growth............................................................................................46
1.6.2 Development Growth and Linear-Stages Theories.....................................................49
1.6.3 The Lewis Model of modern-sector Growth in a Two-sector surplus-labour
Economy - Structural-Change Model..........................................................................................50
1.6.4 The international-dependence revolution....................................................................52
1.6.5 The neoclassical counterrevolution: market fundamentalism..............................52
1.6.6 Classic Theories of Development: reconciling the Differences...............................52
1.6.7 The Solow Neoclassical Growth Model............................................................................53
1.7 New Development Theories....................................................................................................55
1.7.1 Complementaries Needed for economic development..............................................55
1.7.2 Underdevelopment as a coordination failure:.............................................................56
1.7.3 Multiple Equilibria: A Diagrammatic Approach..........................................................57
1.7.4 Multiple Equilibrium - (Todaro & Smith, 2020)...........................................................58
1.7.5 The Big Push.............................................................................................................................60
1.7.6 The Big Push - (Todaro & Smith, 2020)..........................................................................60

, 1.7.7 Super Entrepreneurs (Todaro & Smith).........................................................................62
1.7.8 Other Key Terms.....................................................................................................................63
1.8 State and Development............................................................................................................64
1.8.1 Michael Kremer’s O-Ring Theory of Economic Development..................................64
1.8.2 Economic Development as Self-Discovery......................................................................66
1.8.3 The Hausmann-Rodrik-Velasco Growth Diagnostics Framework.........................67
1.8.4 Social contract theory - talking about the state..........................................................68
1.8.5 Development Planning: concepts and Rationale.........................................................68
1.9 Trade..............................................................................................................................................70
1.9.1 Key Features of Trade in Developing Countries:.........................................................70
1.9.2 Demand Elasticities and Export Earning Instability..................................................70
1.9.3 Comparative advantage theory:.......................................................................................70
1.9.4 The strategies for trade and trade policy, two main strategies:...........................73
1.9.5 Types of economic integration:.........................................................................................73

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