THE UNIVERSITY OF THE WEST INDIES
DEPARTMENT OF ECONOMICS
ST. AUGUSTINE, REPUBLIC OF TRINIDAD & TOBAGO
Tel: 662-2002, 645-3232/9 Exts: 2017; 2018; 3231 Tel/Fax: (868) 662-6555
COURSE TITLE:
Social Economics
COURSE CODE:
ECON 3002
LEVEL: 3
SEMESTER: 2
NO. OF CREDITS: 3
PRE-REQUISITE(S): ECON 2002 and ECON 2003
INSTRUCTOR INFORMATION
Name of instructors:
Mr. Roger Mc Lean
Dr. Daren Conrad
Office address and phone:
Department of Economics
Rooms 222, 216
E-mail address:
Roger.McLean@sta.uwi.edu
Daren.Conrad@sta.uwi.edu
Office hours:
Wednesday 3-5pm
Preferred method of contact:
Face to face during office hours
COURSE DESCRIPTION
This course is designed to give students a feel for the “economics” around the key social
challenges faced by developing counties in general and Caribbean territories in particular,
It focuses on the applying the tools of economic analysis to such areas as Poverty
alleviation, Equity, Unemployment, Health, Gender and Demographic change. Social
Economics, in addressing these areas, adopts a holistic approach and one that is skewed
toward the normative and historical side of Economics.
PURPOSE OF THE COURSE
Social Economics exposes students to different view of the discipline. It exposes students
to a different understanding of economic issues in general and the economics around key
social issues specifically. Through this course, students will be given a thorough
understanding of how social issues can be analyzed from an economic perspective.
The course is designed for students reading B. Sc. Economics programs.
CONTENT
This course is structured around three aspects of the economics of social sector issues.
These aspects are labeled: Introduction, Rationale and Response.
1. Under Introduction and Rationale the following topics are addressed:
1.1 Definition of Social Economics
2. Under Rationale the following topics are addressed:
2.1 Growth and Unemployment
2.2 Unemployment and Poverty
2.3 Poverty and Equity
2.4 Demographic and Related Transitions in the Midst of New Threats
2.5 Vulnerability and Volatility in Small Island States
2.6 Crime and its Socio-economic implications
3. Under Response the following topics are addressed:
3.1 The Social Policy Response
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3.1.1 Social Safety Net
3.2 Health and Development
3.2.1 Health Sector Reform
3.3 Gender and Development
3.4 The Fiscal Response
Each of these areas raises important economic questions and the course will explore both
the theoretical and policy dimensions of these questions.
GOALS/AIMS
The goal of this course is to build an understanding of the philosophical underpinnings of
Social Economics and the importance of the key issues of the course to the achievement
of sustainable growth and development of Caribbean economies among our students.
GENERAL OBJECTIVES
This course seeks to expose students to the required tools and approaches that will
provide them with the ability to:
1. Assess the economic dimensions of the key social challenges that are faced by
small island territories;
2. Identify the factors that are central to these social challenges; and
3. Identify the key policy requirements for addressing these challenges that will
ultimately achieve a sustainable path to development.
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OBJECTIVES FOR BROAD SECTIONS
At the end of section 1, Introduction students must be able to:
• Have a clear understanding of the genesis of Social Economics,
• Understand and identify the philosophical underpinnings of Social Economics and
the issues that are central to the area
At the end of section 2, Rationale, students must be able to:
•
•
Identify the key social challenges faced by SIDS of the Caribbean that are linked
to areas that include Unemployment, Poverty, Demographic and Related
Transitions and Crime; and
Identify the inter-relatedness of these challenges by analyzing the trends
associated with these social “ills”.
At the end of section 3, Response, students must be able to:
• Identify the theoretical framework behind the provision of support to vulnerable
segments of society and highlight, through empirical evidence, the lessons to be
learnt in the administering of such programmes that are applicable to the
Caribbean context;
• Identify the relationship between health and development using this to identify
and critically evaluate this sector’s response in the Caribbean and the economic
implications of the response to date; and
• Identify the relationship between gender and development using this to identify
and critically evaluate the response to key gender related issues in the Caribbean
and the economic implications of the response to date.
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COURSE ASSESSMENT
Students will be assessed by means of a course work assignment, which accounts for
25% of the full mark and a final exam which accounts for the remaining 75% of the total
mark.
The coursework assignment will take the form of a group project. These group projects
are to be presented to a panel headed by the course lecturer and comprising lecturers, and
other specialists in the field. One quarter of the coursework mark will be based on the
presentation of the group research project
The Final Examination will take place at the end of the semester and will entail a two (2)
hour paper. Students will be required to answer three (3) questions, one of which will be
compulsory. The examination will cover all areas of the course.
Both the course work assignment and the final examination will be assessed on the basis
of the course objectives outlined above.
EVALUATION
The tutorial sessions as well as the lecturer’s office hours are provided as the avenues
through which students are urged to give feedback about the various topics covered
during the Course. Meetings with the lecturer outside of office hours can be arranged by
contacting the Department of Economics or via email to the lecturer or Course Tutor(s).
TEACHING STRATEGIES
The course will be delivered through two hours of formal lectures and one hour of
tutorials per week. The course will also include guest lectures from experts in a number
of the subject areas identified in the outline. Students are urged to participate fully during
these guest lectures.
Students are required to attend all lecture discussions hosted by the Department, Faculty
or wider University related to the subject areas covered in the course. Students will be
informed of these lecture discussions as they arise
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COURSE CALENDAR
SECTION ONE: INTRODUCTION
1.1
Introduction: Social Economics - Its Genesis and Foundations
Lutz, Mark. 2002. Social Economics, Justice and the Common Good. International
Journal of Social Economics. Vol. 29 No. 1/2, pp. 26-44
Stikkers, Kenneth. 1992. “Moral Sensibilities for the Social Economy: The Challenges
Facing Social Economists in the Twenty-First Century - A Philosopher's Perspective.”
Review of Social Economy, March 1992.
Waters, William. 1993. “A Review of Troops: Social Economics in the Twentieth
Century.” Review of Social Economy, 1993.
Joe Wallis and Paul Killerby Brian Dollery. 2004. Social economics and Social Capital.
International Journal of Social Economics. Vol. 31 No. 3, 2004. pp. 239-258
Edward J. O’Boyle. 1999. The nature of Social Economics - A personal commentary
International Journal of Social Economics. Vol. 26 No. 1/2/3, 1999,pp. 46-57.
Des Gasper. 2007. Goods and persons, reasons and responsibilities. International
Journal of Social Economics. Vol. 34 No. 1/2, 2007 pp. 6-18
John M. Gowdy. 2005. The death of homo economicus: is there life after welfare
economics? International Journal of Social Economics. Vol. 32 No. 11, 2005 pp. 924938
Edward J. O’Boyle. 2005. John Paul II’s vision of the social Economy. International
Journal of Social Economics Vol. 32 No. 6, 2005 pp. 520-540
L.A. Duhs. 1994. What is Welfare Economics? A Belated Answer to a Poorly
Appreciated Question. International Journal of Social Economics Volume 21 Number 1
1994 pp. 29-42
Lewis E. Hill. 1999. Some random thoughts concerning the symbiotic relationship
between Social and institutional economics. International Journal of Social Economics,
Vol. 26 No. 6, 1999, pp. 811-817.
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SECTION TWO: RATIONALE
2.1
Growth and Unemployment: A Case of Misplaced Faith
Lewis, Arthur. 1968. “Economic Development with Unlimited Supplies of Labour.” In
A. Agarwala and S. P. Singh (eds.), The Economics of Underdevelopment. London:
Oxford University Press.
UNDP (United Nations Development Programme) 1996. “Translating Growth into
Employment Opportunities.” Human Development Report. Oxford: Oxford University
Press.
2.2
Unemployment and Poverty: The Terrible Twins
IADB, 1995. Report for the Latin American and Caribbean Commission on Social
Development.
World Bank. 1995. Trinidad and Tobago Poverty and Unemployment in an Oil Based
Economy. Vol. 1, May 1995. Chapters 1 – 2.
2.3
Poverty and Equity: The Substance of Development
Renata Lok-Dessallien. Review of Poverty Concepts and Indicators. UNDP
http://www.undp.org/poverty/publications/pov_red/Review_of_Poverty_Concepts.pdf
Theodore, Karl. 2000. “An Economic Approach to Understanding Poverty.” Discussion
Paper. Department of Economics, University of the West Indies, St. Augustine.
Baker, Judy. 1997. “Poverty Reduction and Human Development in the Caribbean.”
World Bank Discussion Report #366. Washington D.C.: The World Bank, pp. 1-30.
Sen, A.K. 1997. “Poor, Relatively Speaking.”
In S. Subramanian (ed.), The
Measurement of Inequality and Poverty. Calcutta: Oxford University Press.
Amartya Sen. The Standard Of Living. The Standard Of Living. The Tanner Lectures On
Human Values. Delivered At Clare Hall, Cambridge University. March 11 and 12, 1985.
Dercon, Stefan. 2003 . Poverty Traps and Development: The Equity-Efficiency TradeOff Revisited. European Development Research Network (EUDN).
Dercon, Stefan. 2005. "Poverty measurement", in Clark D. A. (ed.) The Elgar Companion
to Development Studies
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World Bank. 2000. “World Development Report – Attacking Poverty.” Washington
D.C.: The World Bank. Chapters 1-3.
Sanjay G. Reddy1 and Thomas W. Pogge2. How Not To Count The Poor. October 3rd,
2005
Jere, R. Behrman. 1990. “The Action of Human Resources and Poverty on One Another
– What we have yet to learn.” LSMS. Working Paper. No. 74. Washington D.C.: The
World Bank.
Kakwani, N. 1993. “Living Conditions in Developing Countries.” In Lipton and Van Der
Gaag (eds.), Including the Poor. Washington D.C.: The World Bank.
Kakwani. N. 1993. “Measuring Poverty Definition and Significance Tests with
Application to Cote d’Ivoire.” In Lipton and Van Der Gaag (eds.), Including the Poor.
Washington D.C.: The World Bank.
Chenery, Hollis et al. 1981. Redistribution with Growth. Oxford: Oxford University
Press. Chapter 1.
Deininger, K and Lyn, Squire. 1996. “A New Data Set Measuring Income Inequality.”
The World Bank Economic Review. Vol. 19, No. 3, September 1996.
Fishlow, A. 1995. “Inequality, Poverty and Growth: Where do we stand.” Annual World
Bank Conference on Development Economics. Washington D.C.: The World Bank.
IADB (Inter-American Development Bank). 1999. Facing up to Inequity in Latin
America: Economic and Social Progress in Latin America. Washington D.C., IADB.
Sen, A.K. “On Economic Inequality.” Oxford: Oxford University Press, pp. 164 –195.
Subramanian, S. 1997. “The Measurement of Inequality and Poverty.” Calcutta: Oxford
University Press. Introductory Chapter.
2.4 Demographic and related Transitions in the Midst of New Threats
International Monetary Fund. “ How will Demographic Change Affect the Global
Economy?” in World Economic Outlook: The Global Demographic Transition. IMF.
Sept. 2004.
Little, Jane Sneddon, Robert Triest. Seismic Shifts: The Economic Impact of
Demographic Change. An overview.
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Schmid, Karoline. 2003. Population Ageing in the Caribbean: Policies, Programmes and
Future Challenges. ECLAC Subregional Headquarters for the Caribbean. WP/2003/6
Pan American Health Organisation (PAHO) 54th Session of the Regional Committee.
Resolution CSP26.R20. Health and Ageing. Washington, D. C., USA, 23-27 September
2002.
Dr. Eldemire-Sherarer 2004. Organisation of Services for Long-Term Care for Seniors.
Department of Community Health & Psycharity, University of the West Indies, Mona
Campus, Jamaica, W.I. (Power Point Presentation)
Over, Meade. 1991. “Economics for Health Sector Analysis: Concepts and Cases”
Washington D.C.: The World Bank. Chapter 1.
Camara, Bilali, Shelton Nicholls, Roger Mc. Lean, Ralph Henry et al. Modelling and
Projecting HIV and its economic impact in the Caribbean: the experience of Trinidad and
Tobago and Jamaica, Summary Report. 1997
World Bank. HIV/AIDS in the Caribbean: Issues and Options- A Background Report.
Washington D.C.: World Bank, June 2000.
Theodore, Karl. HIV/AIDS in the Caribbean: Economic Issues-Impact and Investment
Response. Discussion Paper #1. Health Economics Unit, UWI. 2000.
2.5 Vulnerability and volatility in Small States
Lina Briguglio (1995) “Small Island Developing States and their Economic
Vulnerabilities.” World Development. Vol. 23, No. 9. pp 1615-1632.
Streeten, Paul, William Easterly and Aart Kraay. “Small States, small problems?” World
Bank Policy Research Working Papers # 2139, June 1999.
Commonwealth Secretariat and The World Bank joint Task Force on Small States
(2000). “Small States: Meeting the Challenges in the Global Economy.
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2.6 Crime and its Socio-Economic Implications
Inter American Development Bank. “How is Violence Measured?” IADB Technical Note 2.
Becker, Gary S., Kevin M. Murphy, and Michael Grossman (2004),”The Economic Theory of
Illegal Goods:The Case of Drugs”., NBER WP #10976.
Dills, Angela, Jeffrey Miron, and Garret Summers (2007),”What do Economists Know about
Crime?” mimeo, Harvard University.
Becker, Gary S. (1968), “Crime and Punishment: An Economic approach”, Journal of Political
Economy, 76(2), 169-217.
The World Bank. (2003). Caribbean Youth and Development Issues and Policy Directions.
The World Bank. (2007). Crime, Violence and Development: Trends, Costs and Policy Options
in the Caribbean.
McElroy, Jerome L.and Andrea J. Roccanti. Crime in the Caribbean: Provisional Evidence
Melissa Felician, (2005) The Economic Cost of Crime to Trinidad And Tobago. Department of
Economics UWI. St. Augustine.
Richards, Anselm. 2003. Crime in Tobago 1996-2002. Paper prepared by the Policy
Research and Development Institute of the Tobago House of Assembly.
Griffith, Ivelaw (ed) “Caribbean Security in the Age of Terror – Challenge and Change. Selected
Chapters. 2004.
Moser, C and Cathy Mcilwaine (2006). Latin American Urban Violence as a Development
Concern: Towards a Framework for Violence Reduction. World Development. Vol. 34. No. 1. Pp
89-112
Fajnzylber, Pablo, Daniel Lederman, and Norman Loayza (2002),”Inequality and Violent Crime”,
Journal of Law and Economics, 45(1), 1-40.
Soares, Rodrigo and Joana Naritomi (2007), “Understanding High Crime Rates in Latin America:
The role of social and Policy Factors”, mimeo, PUC-Rio.
Levitt, Steven D. (2004), “ Understanding Why Crime Fell in the 1990s: Four Factors that
Explain the Decline and Six that do Not”, Journal of Economic Perspectives, 18(1), 163-190.
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SECTION THREE: THE RESPONSE
3.1
The Social Policy Response
Barr, Nicholas. 1993. “Problems of Definition and Measurement” in The Economics of
the Welfare State. London: Weidenfield and Nicholson. Chapter 6.
Chenery, H, et al. 1991. “Redistribution with Growth.” London: Oxford University
Press. Chapter 2.
IADB. 1996. “Macroeconomic Policy and Social Reform.” Socio-economic Report,
Washington. D.C.: IADB, 1996.
Vos, R. 1996. “Criteria for Economic and Social Reform Policies.” Lecture Notes.
Washington, D.C.: INDES.
CGCED
(Caribbean Study, 1996). Poverty Reduction and Human Resource
Development in the Caribbean. ANNEX: Social Safety Nets.
Henry, Ralph and Alicia Mondesir. 1995. “Poverty Alleviation and Reduction
Programmes: the Commonwealth Caribbean Experience.” In Norman Girvan (ed.),
Poverty, Empowerment and Social Development in the Caribbean. Jamaica: Canoe
Press.
World Bank. 2000. “World Development Report – Attacking Poverty.” Washington
D.C.: The World Bank. Chapters 4-7.
Guhan, S. 1997. “Social Security Options for Developing Countries.” In S. Subramanian
(ed.), Measurement of Inequality and Poverty. Delhi: Oxford University Press.
Grosh, M., In “Theory: Cost and Benefits of Targeting,” Ch. 2 in Administrating
Targeted Social Programmes in Latin America. Washington, D.C.: World Bank.
Atkinson, A.B. 1995. “On Targeting Social Security: Theory and Western Experience
with Family Benefits.” In Dominique Van de Walle and Kimberly Nead (eds.), Public
Spending and the Poor: Theory and Evidence. Baltimore: Johns Hopkins University
Press.
Sen, A.K. 1995. “The Political Economy of Targeting.” In Dominique Van de Walle and
Kimberly Nead (eds.), Public Spending and the Poor: Theory and Evidence. Baltimore:
Johns Hopkins University Press.
Van de Walle, D. 1995. “Incidence and Targeting: An Overview of Implications for
Research and Policy.” In Dominique Van de Walle and Kimberly Nead (eds.), Public
Spending and the Poor: Theory and Evidence. Baltimore: Johns Hopkins University
Press.
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Grosh, M. 1992. “The Jamaican Food Stamps Programme. A case study of targeting
food policy.” (February 1992).
3.2
Health and Development – Response & Reform Initiatives
Cumper, George. “Economic Development, Health Services and Health.”
Theodore, Karl. 1997. “From Crisis to Confidence – An Economic Perspective on the
Health – and – Development Nexus.” Health Economics Unit, University of the West
Indies, St. Augustine.
The Prospect for Health and Wealth in the Caribbean Presented at The Fourth William
G. Demas Memorial Lecture by George A.O. Alleyne Director Emeritus, PAHO. St. Kitts
and Nevis. May 13, 2003
World Bank. 1993. “World Development Report – Investing in Health.” Washington
D.C.: The World Bank. Chapters 1.
Dean Jamison et al (Eds). Disease Control Priorities in Developing Countries (2nd
Edition). World Bank
Report on Caribbean Commission on Health and Development. PAHO/CARICOM,
2006. (Relevant Chapters)
Desgupta, P. 1993. “An Enquiry into Well-Being and Destitution.” Oxford: Clarendon
Press. Chapter 4.
Kutzin, Joseph. 1995. “Experience with Organizational and Financing Reform of the
Health Sector.” Division of Strengthening of Health Services (SHS). Paper #8. World
Health Organization (WHO).
Theodore, Karl. 1998. “Health Financing and Health Reform in the Caribbean: Where do
we go from here?” Health Economics Unit, University of the West Indies, St. Augustine.
Theodore, Karl. 1994. “Understanding Reform Proposals presented by the World Bank
and by PAHO.” Paper presented at 14th Conference of CARICOM Ministers responsible
for Health, St. Vincent, July 18th-22nd, 1994.
Thomason, Jane. 1999. “Health Sector Reform in Developing Countries: A Reality
Check.” Australian Centre for International and Tropical Health and Nutrition. Australia.
World Bank. 1993. “World Development Report - Investing in Health.” New York:
Oxford University Press. Chapter 7.
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3.3
Gender and Development
Alexander, Patricia and Sally Baden. 2000. “Glossary on Macroeconomics from a Gender
Perspective.” GTZ/BRIDGE. February 2000.
Cagatay, Nilufer. 1998. “Engendering Macroeconomics and Macroeconomic Polices.”
UNDP Social Development and Poverty Elimination Division. Working Papers #6.
October 1998.
Cagatay, Nilufer. 1998. “Gender and Poverty.” UNDP Social Development and Poverty
Elimination Division. Working Papers # 5. May 1998.
ECLAC/CDCC, Third Caribbean Ministerial Conference on Women. Trinidad, Port of
Spain, 5-7th October, 1999. Conference Papers.
Gomez, E and Karen Sealey. 1997. “Women, Health and Development.” In Health
Conditions in the Caribbean.” Washington. D.C.: PAHO, 1997.
UNECLAC/CDCC. 2000. “A Study of Gender Mainstreaming in the Caribbean.”
UNECLAC.
Appleton, S and Paul Collier. 1995. “On Gender Targeting of Public Transfers.” In
Dominique Van de Walle and Kimberly Nead (eds.), Public Spending and the Poor:
Theory and Evidence. Baltimore: Johns Hopkins University Press.
3.4
Fiscal Response
Ramsaran, Ramesh. 1999. “The Fiscal Challenge and Caribbean States at the Turn of the
Century,” in UNECLAC The Fiscal Covenant: Strengths, weaknesses, challengesCaribbean Perspectives. UNECLAC, Trinidad and Tobago.
Theodore, K. 1998. “Socially Sensitive Budgeting: Simple guidelines for policy makers.”
Paper presented at UNICEF Social Policy, Investment and Monitoring Seminar.
Barbados, April 6th, 9th, 1998.
__________. 2000. “A Fiscal Reform Agenda for the Caribbean-Fiscal Reform and
Development.” Paper presented at IMF/CDB Towards a Caribbean Consensus
Conference, Barbados, February 8-12th , 2000.
UNECLAC (United Nation Economic Commission for Latin America and the
Caribbean). 1999. “Tax Performance and Reform in the Organization of Eastern
Caribbean States.” Trinidad and Tobago. UNECLAC (CDCC).
Ghandi, Ved P. “Tax Reforms: Some considerations and limits.” (Lessons from
Experiences of Developing Countries).
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HOW TO STUDY FOR THIS COURSE
It is strongly suggested that students cover the required readings for this course and
prepare the questions listed in the tutorial for presentation. This will ensure that both the
lecturer and the assigned teaching assistant are in a better position to evaluate and assess
the quality of analytical and writing competency of the student and advise accordingly.
.
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