Dr. Thomas Koch / Abteilungsdirektor Strategische Projekte
DEG - Deutsche Investitions- und
Entwicklungsgesellschaft mbH - Köln
c/o Fakultät für Wirtschaftswissenschaft
Lehrstuhl für Internationale Wirtschaftsbeziehungen
Prof. Dr. Matthias Busse / Prof. Beckmann
April 12, 2016
Seminar in Development Economics:
Development, the Agriculture Enterprise Sector
and SME Finance
Summer Term 2016
Course No. 075 093
Course description
The course is geared towards an intensive dialogue between theory and practice of
development cooperation in the private enterprise sector. It stands for a balanced mix
of macroeconomic perspectives (agricultural development economics, financial
sector development) and microeconomic views (investment/finance of agri-enterprise
and SMEs). Seminar education experiences cover team work papers, presentations
as well as case studies (similar to Harvard Business School method) which foster
basic skills of a professional career of students in development cooperation
workplaces.
Objective: Students will get to know theoretical models as well as practitioner´s
problems and possible solutions (or dilemmas?) for agri-enterprises and SMEs in
developing countries. The course will focus on current discussion topics related to
private enterprise food production in the agrisector as well as investment and finance
risk assessment. In addition, it covers SME access to finance difficulties and possible
solutions. With successful completion of this course, students will be able to assess
development-projects and put them into macroeconomic perspective of poverty
reduction.
Content: The 2-day-block-seminar will deal with selected topics regarding the
relationship between poverty reduction, GDP growth and investment/finance in
developing countries.
Enrolment
Enrolment is open to Master students (MSc in Economics, MSc in Management and
Economics, MSc in Management, MA in Development Management (MADM). Master
students may obtain 5 (ECTS) credit points for the module.
Enrolment in the seminar is limited to max. 16 students. To register for this course,
students have to show up on the first session of the seminar, that is,
Thuesday, April 12, 2016,
6.00-7.30 pm., GC 03/46
1
Dr. Thomas Koch / Abteilungsdirektor Strategische Projekte
DEG - Deutsche Investitions- und
Entwicklungsgesellschaft mbH - Köln
c/o Fakultät für Wirtschaftswissenschaft
Lehrstuhl für Internationale Wirtschaftsbeziehungen
Prof. Dr. Matthias Busse / Prof. Beckmann
April 12, 2016
Prerequisites
Some prior coursework in development economics is required.
Basic knowledge of German “Entwicklungszusammenarbeit”
(Development Cooperation + Policy) is expected.
Successful seminar participation “Tutorial on scientific methods”
is highly recommended.
Block seminar times
Introduction to scientific methods
Thursday, April 14, 2016; 6 p.m. – 7.30 p.m.; GC 03/46
Consulting / teaching support on
Wednesday, April 27, 2016; 6 p.m. – 7.30 p.m.; GC 3/145
(office of Prof. Busse/Prof. Beckmann)
Seminar schedule
Friday, June 10, 2016; 10 a.m. – 6 p.m., GC 03/46
Saturday, June 11, 2016; 10 a.m. – 4 p.m., GC 03/46
Seminar topics
1. SDG and Agri-Investment –
Is the Agri-sector “insignificant” for Developing Countries?
(individual country cases)
2. “Food crisis revisited”?: Agro-Prices – Demand and Supply Determinants, Index
Trend Analysis and Consequences in Developing Countries
3. Food Crisis and the “Land Grabbing”-Debate – Are Agri-Enterprises “neo-colonial
land grabbers” or “responsible investors”?
4. Climate Change – its Consequences on Agriculture and Poverty
5. The Economics of the Global Wine Market – Determinants of Supply and Demand
6. Agri-Finance and Financial Institutions – Risk and Risk Mitigation
Case Study: an Agri-Bank LAAD - Latin American Agribusiness Development
Corporation
7. Small and Medium Enterprises vs Micro-Enterprises in Developing Countries – is
there an empirical missing Middle in Access to Finance?
8. Venture Capital- and Venture Philanthrophy-Funds – are these Instruments to
improve Access to Finance for Small and Medium Enterprises?
General Discussion for all participants:
Which bottlenecks of development is more relevant – the agri- or the finance sector?
Seminar papers and presentations
2
Dr. Thomas Koch / Abteilungsdirektor Strategische Projekte
DEG - Deutsche Investitions- und
Entwicklungsgesellschaft mbH - Köln
c/o Fakultät für Wirtschaftswissenschaft
Lehrstuhl für Internationale Wirtschaftsbeziehungen
Prof. Dr. Matthias Busse / Prof. Beckmann
April 12, 2016
Students are expected to form groups of two. Each group will be responsible for
writing a joint paper (max. 12 pages in length; including tables and figures), 2.5 cm
margins top/bottom/left/right, 1.5 line spacing, Times New Roman 12 point font). In
addition, a short executive summary of about 200 words (key question, methodology
and main results) should be included (max 1 page).
Papers + presentation are due one week before the block seminar presentation –
Friday, June 3, 2016. Please submit the paper / presentation electronically via email to the following e-mail address: thomas.koch@deginvest.de
Seminar presentations
English presentations should have a maximum (!) length of 30 min focusing on the
results of the seminar paper. The speakers can use any visual device (e.g. beamer,
handouts, short-cut movies, etc.) and should be able to answer questions during the
presentation (Please prepare a well structured presentation that is interesting and
educational for your audience!).
Discussions
Each student will be assigned to another topic (not his/her paper) which s/he should
briefly (5 min) discuss after the presentation. The discussion should be a critical
reflection of the paper and presentation (content, structure, unclear points) and come
up with two or three questions to start a discussion.
It is expected that all other students have briefly gone through the papers of the other
participants before the seminar, so that a good discussion can take place.
Grading
Seminar paper (50%), presentation of the paper (35%) and discussion (15%);
additional bonus points can be achieved by oral participation in the seminar (10%).
Seminar paper and the presentation will be in English.
Contact person for the seminar topics:
Dr. Thomas Koch – Director Strategic Projects / DEG
e-mail: thomas.koch@deginvest.de
3
Dr. Thomas Koch / Abteilungsdirektor Strategische Projekte
DEG - Deutsche Investitions- und
Entwicklungsgesellschaft mbH - Köln
c/o Fakultät für Wirtschaftswissenschaft
Lehrstuhl für Internationale Wirtschaftsbeziehungen
Prof. Dr. Matthias Busse / Prof. Beckmann
April 12, 2016
Literature
The papers below should guide participants towards conducting their research and
writing their seminar papers. It is expected, however, that students search for
additional literature.
General Reading:
• UNCTAD-United Nations Conference on Trade and Development (2009).
World Investment Report (WIR) 2009 – Transnational Corporations,
Agricultural Production and Development, in particular: part two, p. 91-194.
• IFC - International Finance Corporation (1999): Project Finance in Developing
Countries – Lessons of Experience number 7; in particular chapter 3 and 4.
1. MDG and Agri-Investment –
Is the Agri-Sector “insignificant” for Developing Countries?
(individual country cases to be selected)
•
•
UNCTAD-United Nations Conference on Trade and Development (2009).
World Investment Report (WIR) 2009 – Transnational Corporations,
Agricultural Production and Development, p. 101-104 and 111-117 and
chapter IV b + c.
http://www.unctad.org/en/docs/wir2009_en.pdf
United Nations (2014): The Millennium Development Goals Report 2014, p. 115 and 48-53.
http://www.un.org/millenniumgoals/2014%20MDG%20report/MDG%202014%
20English%20web.pdf
2. “Food crisis revisited”?: Agro-Prices – Demand and Supply Determinants,
Index Trend Analysis and Consequences in Developing Countries
•
•
•
FAO Food Price Index (2016).
http://www.fao.org/worldfoodsituation/foodpricesindex/en/
Deutsche Bank Research (2009): Lebensmittel – Eine Welt voller Spannung
http://www.dbresearch.de/PROD/DBR_INTERNET_DEPROD/PROD0000000000248191.PDF
OECD/FAO (2015): Agricultural Outlook 2015-2024.
http://www.agri-outlook.org/
4
Dr. Thomas Koch / Abteilungsdirektor Strategische Projekte
DEG - Deutsche Investitions- und
Entwicklungsgesellschaft mbH - Köln
c/o Fakultät für Wirtschaftswissenschaft
Lehrstuhl für Internationale Wirtschaftsbeziehungen
Prof. Dr. Matthias Busse / Prof. Beckmann
April 12, 2016
3. Food Crisis and the “Land Grabbing”-Debate – Are Agri-Enterprises “neocolonial land grabbers” or “responsible investors”?
•
•
•
•
Klaus Deininger and Derek Byerlee / Worldbank (2010): Rising Global Interest
in Farmland – can it yield sustainable and equitable benefits?
http://siteresources.worldbank.org/INTARD/Resources/ESW_Sept7_final_final
.pdf
Claire Schaffnit-Chaterjee (2012): Foreign investment in farmland – no lowhanging fruit. DB Research, November 13, 2012
http://www.dbresearch.com/PROD/DBR_INTERNET_ENPROD/PROD0000000000296807/Foreign+investment+in+farmland%3A+No+l
ow-hanging+fruit.PDF
Koch, Thomas (2011). Kontroverse land grabbing: Private Agrarinvestitionen –
wem nützen sie? In: Eins Dossier 5-2011, page 6-8
http://www.brot-fuer-die-welt.de/downloads/niemand-isst-fuer-sich-allein/landist-leben.pdf
Landgrabbing – Oxfam
http://www.oxfam.de/informieren/landgrabbing
4. Climate Change – its Consequences on Agriculture and Poverty
•
Hertel, Thomas and Rosch, Stephanie (2010): Climate Change, Agriculture
and Poverty, The World Bank Development Research Group Agriculture Rural
Development Team November, working paper 5468.
http://wwwwds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2010/11/02/0001583
49_20101102135244/Rendered/PDF/WPS5468.pdf
5. The economics of the global wine market – determinants of supply and
demand
case study: Argentina
•
•
Daten zur Weinproduktion/Angebot und Nachfrage vgl. OIV-webpage
http://www.oiv.int/oiv/info/enconjoncture
Data Analysis of Economist Intelligence Unit + Bloomberg to be provided at
beginning of seminar
5
Dr. Thomas Koch / Abteilungsdirektor Strategische Projekte
DEG - Deutsche Investitions- und
Entwicklungsgesellschaft mbH - Köln
c/o Fakultät für Wirtschaftswissenschaft
Lehrstuhl für Internationale Wirtschaftsbeziehungen
Prof. Dr. Matthias Busse / Prof. Beckmann
April 12, 2016
6. Agri-Finance and Financial Institutions – Risk and Risk Mitigation
Case Study: LAAD - Latin American Agribusiness Development Corporation
•
•
•
•
Wenner, Mark; Navajas, Sergio ed all. (2007): Managing Credit Risk in Rural
Financial Institutions in Latin America, Inter-American Development Bank-Best
Practice Series.
http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=1442364
Van Empel, Gerard (2010): Rural Banking in Africa: The Rabobank Approach.
In: IFPRI/World Bank, Innovations in Rural and Agriculture Finance, brief 4,
July.
http://www.ifpri.org/sites/default/files/publications/focus18.pdf
LAAD (2014): annual report 2014. (2015 report to be published by April)
http://laadsa.com/downloads/Laad_2013_annual.pdf
GPFI/IFC (2012):
Innovative Agricultural SME Finance Models
http://www.mongolbank.mn/conference/books/02.pdf
7. Small and Medium Enterprises vs Microfinance in developing countries – is
there an empirical missing middle in access to finance?
• World Bank / IFC database (2012):
http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EX
TPROGRAMS/EXTFINRES/0,,contentMDK:21454009~pagePK:64168182~pi
PK:64168060~theSitePK:478060,00.html
• Dalberg Consult (2011): Report on Support to SMEs in Developing
Countries through Financial Intermediaries.
http://dalberg.com/sites/dalberg.com/files/Dalberg_Proposal_SME%20Briefing
%20Paper_EIB_Draft_Version_V34.pdf
8. Venture Capital- and Venture Philanthropy-Funds – are these Instruments to
improve Access to Finance for Small and Medium Enterprises?
• Michael Schefczyk (2000): Finanzieren mit Venture Capital, Stuttgart
• Bob Zider (1998):
How Venture Capital Works; Harvard Business Review November
December 1998;
http://entrepreneurship.saddleback.edu/Resources/Financial%20Articles
/How%20Venture%20Capital%20Works.pdf
6