University of London
School of Oriental and African Studies
Faculty of Law & Social Sciences
Department of Development Studies
POLITICAL ECONOMY OF DEVELOPMENT
Course Code: 15PDSC002
2010–2011
Course Convenor: Dr. Thomas Marois
Course Level: Postgraduate
Course Lecturers:
Thomas Marois (convenor)
tm47@soas.ac.uk , Room 293
Chris Cramer
cc10@soas.ac.uk , Room 288
Carlos Oya
co2@soas.ac.uk , Room 292a
Jonathan Di John
jd5@soas.ac.uk , Room 368
Alessandra Mezzadri
am99@soas.ac.uk , Room 4414
Adam Hanieh
ah92@soas.ac.uk , Room 4413
Hannah Bargawi
hb19@soas.ac.uk , Room 476
Deborah Johnston
dj3@soas.ac.uk , Room 270
Course Description:
This course examines development processes of capitalism and the specific development
policies and strategies undertaken in different regions and countries of the world from a
political economy perspective. The syllabus is designed to provide a basic overview of the
elements of economic theory and policy that are especially relevant to the study and practice
of development. The first term covers the essential theoretical and historical context of the
political economy of development, with a focus on different interpretation of political economy,
inequality and development, and some of the basic features of the world economy. The
second term focuses upon a range of specific topics currently debated in the political
economy of development field. Throughout the course, basic theory is combined with
applications to developing countries, using examples from Africa, Asia, Middle East, and Latin
America. Special emphasis is given to changes in the international environment over the last
thirty years, which are often described as ‘structural adjustment’, ‘neoliberalism’,
‘financialization’, and their effects on the policies and prospects of the poor countries.
This course is supplemented, in the first term, by an introductory economics course
(Economics for Beginners) designed for non-economists. This course is optional and is not
assessed.
Course Organisation:
The course consists of two-hour weekly lectures, weekly seminars with tutors, and the
introductory economics classes. The lecture and the seminars are for everyone, and students
must attend the lectures and seminars every week. The Economics for Beginners classes are
optional.
Lectures:
Tuesdays, 9am–11am @ Brunei Gallery Lecture Theatre (BGLT)
Tutorials:
Students must participate in one of several seminar groups. In the seminar
sessions, graduate tutors will help to facilitate and stimulate student-led
discussions of the themes and questions generated by the assigned readings
and lectures. You must come prepared to actively engage in respectful and
thoughtful debate.
Blackboard (BLE):
The reading list will be posted on the Blackboard (BLE) site, along with lecture notes and
announcements.
 To access the Blackboard go to www.ble.ac.uk and log-in using your SOAS ID.
 In the 'courses' box on the welcome page, you will find a link to ‘Political Economy of
Development', and will be able to navigate from there.
 You must also hand in you essays through turnitinUK on the BLE site
2
Course Aims and Learning Outcomes:
The main objectives of this course are to:
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Critically review the most important theories of development from a range of political
economy perspectives, highlighting the key differences in methodology, assumptions,
logic, and policy implications between competing approaches to development.
Identify the key political and economic constraints to development, and the limitations
of different strategies of development.
Review the relationship between economic development theories and policies from a
macro or microeconomic angle, depending on the topic.
Assess the processes of development in different regions of the world, and compare
and contrast different theoretical interpretations of these processes.
Discuss and assess the validity and reliability of the empirical evidence available
across a wide range of issues, stressing the methodological problems and challenges
of collecting good quality data in the developing countries for rigorous empirical
analysis.
At the end of this course, students will be able to:
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Identify and understand the most important problems and debates in the field of
political economy of development.
Make informed comparisons between processes and problems of development
across different regions of the world, and between countries in these regions.
Understand the diversity of economic and political structures among developing
countries.
Use and understand a range of sources for empirical information and critically
evaluate the empirical basis of different approaches to development.
Develop their analytical and critical skills, through the ideas discussed in the lectures
and through individual research.
Enhance their communication and critical thinking skills through seminar debate and
discussion.
3
Methods of Assessment:
Method
3 Hour Examination
3000 Word Essay (1)
3000 Word Essay (2)
Weight
70%
15%
15%
Due Date
TBA for Term III
10 Jan 2011
30 Mar 2011
The essays MUST be submitted online through BLE turnitinUK. Late submission
penalties apply as of 11:59pm on the due date. Do NOT submit hard copies to the
Faculty Office. ONLY online BLE submissions will be accepted and graded.
YOU ALONE are fully responsible for ensuring your essay has been properly
submitted to BLE turnitinUK on time. If you do not receive a confirmation of
submission, resubmit your essay. Always allow room for error and avoid leaving your
essay submission to the last minute.
NOTE: By submitting your assignment you declare that it is all your own work and that you
have acknowledged all materials used from the published or unpublished works of other
people. You agree that your assignment will be submitted to plagiarism detection services.
Please refer to the DEVS Good Assignments Guideline in preparing your essays (DEVS
Homepage). There is another useful writing guide and essay outline template that you may
find useful at http://www.thirdspace.ca/chora/12stepessay.htm (not specific to Political
Economy).
4
Permanent References
There is no standard textbook for this course as each topic contains a wide-ranging reading
list with significant reliance on published journal articles and individual book chapters from
various sources. However, the following books available in the library in different ways cover
some of the most important core aspects of political economy and development thought.
1. Clark D.A. (ed.) (2007). The Elgar Companion to Development Studies. Cheltenham:
Edward Elgar. [Available from SOAS Library.]
2. Hunt, E.K. (2002). History of Economic Thought: A Critical Perspective, 2nd ed., New
York, M.E. Sharpe.
3. Fine, Ben and Milonakis, Dimitris (2008) From Political Economy to Economics: Method,
the Social and the Historical in the Evolution of Economic Theory. Routledge.
4. Simon, David (2005). Fifty Key Thinkers on Development, Routledge.
Further Background and General Reading
There are several texts that can be of broad use for several components of this course as
well as for further background reading:
Beaud, Michel (2001). A History of Capitalism, 1500-2000, trans. by Tom Dickman and Anny
Lefebvre, New York: Monthly Review Press.
Thirlwall, A.P., (2006), Growth and Development, 8th edition, London: Palgrave
[Available from SOAS Library.]
Rapley J. (2007). Understanding Development: Theory and Practice in the Third World.
London: Lynne Rienner [Available from SOAS Library.]
Chang, H-J. (ed.) (2003) Rethinking Development Economics. London: Anthem Press
[Available from SOAS Library.]
Chang H-J. and Ilene Grabel (2004) Reclaiming Development: An Alternative Economic
Policy Manual. London: Zed Books. [Available from SOAS Library.]
Hunt D. (1989) Economic Theories of Development. Hemel Hempstead: Harvester
Wheastheaf. [Available from SOAS Library.]
Kitching G. (1989) Development and Underdevelopment in Historical Perspective: Populism,
Nationalism and Industrialization. London: Routledge. [Available from SOAS Library.]
Meier G.M. and J.E. Rauch (2005) Leading Issues in Economic Development, 8th ed. Oxford:
Oxford University Press. [Available from SOAS Library.]
Saad-Filho A. and D. Johnston (2005) Neoliberalism: A Critical Reader. London: Pluto Press.
[Available from SOAS Library.]
Secondi G. (ed.), (2008). The Development Economics Reader. London: Routledge.
[Available from SOAS Library.]
Snowdon B., H. Vane and P. Wynarczyk (1994) A Modern Guide to Macroeconomics.
Aldershot: Edward Elgar. [Available from SOAS Library.]
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Additional Internet Resources
In your studies and research, you may find these internet resources useful. Feel free
to suggest other sites you think might be of use to future students.
****The Economic and Social Data Service (ESDS)
http://www.esds.ac.uk/
The ESDS is a national data service providing access and support for an extensive
range of key economic and social data, both quantitative and qualitative, spanning
many disciplines and themes. ESDS provides an integrated service offering
enhanced support for the secondary use of data across the research, learning and
teaching communities. NEW USERS MUST REGISTER.
The History of Thought, New School for Social Research
http://cepa.newschool.edu/het/introd.htm.
“a repository of collected links and information on the history of economic thought,
from the ancient times until the modern day. It is designed for students and the
general public, who are interested in learning about economics from a historical
perspective”
The McMaster University Archive for the History of Economic Thought
http://socserv2.socsci.mcmaster.ca:80/~econ/ugcm/3ll3/
“This archive is an attempt to collect in one place a large number of significant texts
in the history of economic thought”
Marxists Internet Archive at Marxists.org
“aims to maintain an archive of any and all writings which are Marxist or relevant to
the understanding of Marxism and can be lawfully published”
The Committee for the Cancellation of the Third World Debt
http://www.cadtm.org/CADTM
“an international network of individuals and local committees from across Europe and
Latin America, Africa and Asia. … Its main preoccupation, besides the debt issue, is
the planning of activities and radical alternatives for the creation of a world respectful
of people’ ss fundamental rights, needs …”
The Real News Network
http://www.therealnews.com/t2/
Third World Network
http://www.twnside.org.sg/index.htm
6
TERM I LECTURES @ A GLANCE
Term I: Theory, Evidence and History
Date
Lecturer
Historical Context of Development
1
The Political Economy of Development: An Overview
05 Oct
Thomas Marois
2
The Transition to Neoliberal Strategies of Development
12 Oct
Thomas Marois
Interpreting the Political Economy of Development
3
Neoclassical Approaches to Development
19 Oct
Adam Hanieh
4
Marxism and Development
New Institutionalism and the Post-Washington
Consensus
26 Oct
Thomas Marois
02 Nov
Jonathan Di John
5
READING WEEK 8-12 November
Inequality and Development
6
7
Catching Up or Falling Behind? – Global Income
Distribution
Inequality and Development
[NOTE: lecture @ Kennedy Lecture Theatre, UCL's
Institute of Child Health, 30 Guilford Street, WC1N 1EH]
16 Nov
Carlos Oya
23 Nov
Chris Cramer
Key Topics of Political Economy of Development
8
Finance and Development
30 Nov
Thomas Marois
9
Development Aid
07 Dec
Carlos Oya
10
International Trade and Development
14 Dec
Carlos Oya
Instructions for Readings
Use the links in this list to find your readings:
- Where they are available online you’ll find a direct link to the text;
- If they are only available in print you will find a direct link to the SOAS library catalogue so
you can check whether the book/journal is available
- If they are not available online or in print at SOAS, you will find a direct link to other
University of London catalogues so you can check whether the item is available.
- To access any of the electronic journal articles off-campus you will need to use your SOAS
id and password (this is the same as your SOAS BLE, e-mail or computer login). For detailed
instructions on accessing e-journals please see:
http://www.soas.ac.uk/library/resources/ejournals/offsite/offcampus-access.html
**IF NO LINK IS PROVIDED, YOU’LL NEED TO SEARCH THE READING YOURSELF**
- If you need any help with accessing readings/ e-journals/ databases email
electronic@soas.ac.uk or call 020 7898 4146.
7
Term I: Theory, Evidence, and History



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Date
Lecturer
Readings with an (RP) are included in the reading packs.
Readings with an (online) are available through the SOAS library database.
Recommended Readings are also important, but they are not included in the reading
packs. Lecturers also provide supplementary readings to offer guidance to further study.
Your choose from the Essay Questions provided to write your assignments.
Historical Context of Development
1
The Political Economy of Development: An
Overview
05 Oct
Thomas Marois
This lecture introduces the course overall. The second part of the lecture will review some of the
most important historical patterns of thought defining the political economy of development.
Core readings
(RP) Beaud, Michel (2001). “Introduction”, A History of Capitalism, 1500-2000, trans. by Tom
Dickman and Anny Lefebvre, New York: Monthly Review Press.
(RP) Therborn, Goran (1976). “The Economy and the Economies of Capitalism”, Science, Class
and Society: On the Formation of Sociology and Historical Materialism, London: Verso.
(RP) Coates, David (2005). “Paradigms of Explanation”, Varieties of Capitalism, Varieties of
Approaches, ed. by David Coates, New York: Palgrave MacMillan.
(online) Bernstein, Henry (2006). “Studying Development/Development Studies”, African
Studies, 65, 1: 45-62.
Essay Question
Compare and contrast the core tenets of neoclassical/liberal, institutional/Keynesian, and
Marxian approaches to the political economy of development.
Recommended Readings
Fine, B. and Milonakis, D. (2009) From Economics Imperialism to Freakonomics. London:
Routledge.
Milonakis, Dimitris and Ben Fine (2009). From Political Economy to Economics: Method, the
Social and Historical in the Evolution of Economic Theory, London: Routledge.
Thorbecke, E. (2007) ‘The Evolution of the Development Doctrine, 1950-2005’, in: G. Mavrotas
and A. Shorrocks (eds.) Advancing Development: Core Themes in Global Economics. London:
Palgrave. [Available from SOAS Library.]
Leftwich, A. (2005) ‘Politics in Command: Development Studies and the Rediscovery of Social
8
Science’, New Political Economy 10 (4), pp.573-607. [Available from IngentaConnect.]
Yalman, Galip (2009). “State and Market”, Transition to Neoliberalism: The Case of Turkey in
the 1980s, Istanbul Bilgi University Press. (pgs. 21-112)
Perelman, M. (2006) Railroading Economics: The Creation of the Free Market Mythology. New
York: Monthly Review Press, chapter 1. [Available from SOAS Library.]
Harriss, J. (2002) ‘The Case for Cross-Disciplinarity Approaches in International Development’,
World Development 30 (3), pp.487-496. [Available from ScienceDirect.]
Supplementary Readings
Hunt, E.K. (2002). History of Economic Thought: A Critical Perspective, 2nd edition, New York,
M.E. Sharpe. (pgs. 3-23)
Wood, Ellen (2003). Empire of Capital, New York: Verso.
Dobb, Maurice (1964). “Capitalism”, Studies in the Development of Capitalism, New York:
International Publishers. (Ch.1)
Polanyi, Karl (1957). The Great Transformation, Boston: Beacon Press. (chs. 9-11).
Seabrooke, Leonard (2007). “Why Political Economy Needs Historical Sociology”, International
Politics, 44: 390-413.
Bharadwaj, K. (1986) Classical Political Economics and Rise to Dominance of Supply and
Demand Theories. Hyderabad: Universities Press (India). [Available from SOAS Library.]
Foley, D. (2004) ‘The Strange History of the Economic Agent’, The New School Economic
Review 1 (1), pp.129-150. [Available from the New School journal website.]
Heilbroner, R. (1980) The Worldly Philosophers. New York: Simon and Schuster, chapters 2-3.
[Available from SOAS Library.]
Horn, R., Jerome, R.T. and Terkun, K. (2008) ‘Life among the Sub-Econ: The Pon Farr and
Koon Ut Kal If Ee Rituals’, Review of Radical Political Economics 40 (2), pp.233-238. [Available
from UCL Library.]
Hunt, D. (1989) Economic Theories of Development, Hemel Hempstead: Harvester Wheatsheaf,
chapters 1-3. [Available from SOAS Library.]
Hunt, E.K. (1992) History of Economic Thought: A Critical Perspective. New York:
HarperCollins. [Available from SOAS Library.]
Kanbur, R. (2002) ‘Economics, Social Science and Development’, World Development 30 (3),
pp.477-486. [Available from ScienceDirect.]
Keen, S. (2001) Debunking Economics: The Naked Emperor of the Social Sciences. London:
Zed Books, chapters 1and 7 (pp. 1-19, 148-164). [Available from SOAS Library.]
Lavoie, M. (1993) Foundations of Post-Keynesian Economic Analysis. Aldershot: Edward Elgar.
[Available from SOAS Library.]
Levy, D.M. (2001) ‘How the Dismal Science Got Its Name: Debating Racial Quackery’, Journal
of the History of Economic Thought 23 (1), pp.5-35. [Available from EBSCOhost.]
9
Leys, C. (1996) The Rise and Fall of Development Theory. Indianapolis: Indiana University
Press. [Available from SOAS Library.]
Ricardo, D. (1817) On the Principles of Political Economy and Taxation. Cambridge: Cambridge
University Press 1951 edition (or any other edition), chapter 1. [Available from SOAS Library.]
Rubin, I.I. (1989) A History of Economic Thought. London: Pluto Press. [Available from SOAS
Library.]
Schumpeter, J.A. (1994) History of Economic Analysis. London: Routledge, part IV, chapter 6.
[Available from SOAS Library.]
Screpanti, E. and Zamagni, S. (1995) An Outline of the History of Economic Thought. Oxford:
Oxford University Press. [Available from SOAS Library.]
Smith, A. (1776) The Wealth of Nations. London: Everyman 1991 edition (or any other edition)
Book I, introduction and chapters 1-4. [Available from SOAS Library.]
Streeten, P. (1995) Thinking about Development. Cambridge: Cambridge University Press,
chapter 1. [Available from SOAS Library.]
Weeks, J. (1989) A Critique of Neoclassical Macroeconomics. London: Macmillan.
[Available from SOAS Library.]
2
The Transition to Neoliberal Strategies of
Development
12 Oct
Thomas Marois
The transition to neoliberal strategies of development globally since about the 1980s is a
defining feature of our times. This lecture explores the key historical dynamics of this transition
in the developing world and how this has been interpreted differently among political
economists. Special reference will be made to the case of Turkey and how actually existing
neoliberalism is defined by a universalizing tendency towards market-oriented competitive
imperatives internationally that are differentiated in practice by the historical circumstances and
unique patterns of accumulation and power found in societies like Turkey.
Core readings
(RP) Beaud, Michel (2001). “Capitalism’s Great Leap Forward (1945-1980)”, A History of
Capitalism, 1500-2000, trans. by Tom Dickman and Anny Lefebvre, New York: Monthly Review
Press. (pgs. 213-261)
(online) Balassa, Bela (1982). “Structural Adjustment Policies in Developing Economies”, World
Development, 10, 1: 23-38.
(RP) Elmar Altvater (2007). “The Roots of Neoliberalism”, Socialist Register 2008: Global
Flashpoints: Reactions to Imperialism and Neoliberalism, ed. by Leo Panitch and Colin Leys,
Halifax, Nova Scotia: Fernwood Publishing. [Available from SOAS library]
(RP) Albo, Greg (2005). “Contesting the ‘New Capitalism,’” Varieties of Capitalism, Varieties of
Approaches, ed. by David Coates, New York: Palgrave MacMillan.
(RP) Bedirhanoğlu, Pınar and Galip Yalman (2010). “State, class and the discourse: Reflections
10
on the neoliberal transformation in Turkey”, Economic Transitions to Neoliberalism in Middleincome Countries: Policy dilemmas, economic crises, forms of resistance, ed. By Alfredo SaadFilho and Galip Yalman, Routledge, Oxon, UK.
Essay Question
Explore the historical transition to neoliberalism since the 1980s in a developing country of your
choice. Your paper must make reference to how a neoclassical/liberal interpretation differs from
EITHER an institutional/Keynesian OR Marxian interpretation of the transition to neoliberalism.
Recommended Readings
Saad-Filho, Alfredo and Galip Yalman (eds.) (2010). Economic Transitions to Neoliberalism in
Middle-income Countries: Policy dilemmas, economic crises, forms of resistance, Oxon, UK:
Routledge.
Saad-Filho A. and D. Johnston (2005) Neoliberalism: A Critical Reader. London: Pluto Press.
[Available from SOAS Library.]
Yalman, Galip (2009). Transition to Neoliberalism: The Case of Turkey in the 1980s, Istanbul
Bilgi University Press.
Marois, Thomas (2005). “From Economic Crisis to a ‘State’ of Crisis?: The Emergence of
Neoliberalism in Costa Rica”, Historical Materialism, 13, 3: 101-34.
Lindblom, Charles E. (1982). “The Market as Prison”, The Journal of Politics, 44, 2: 324-336.
Glyn, Andrew (2006). “Challenges to Capital” (Ch. One), Capitalism Unleashed: Finance,
Globalization and Welfare, Oxford: Oxford University Press. (pgs. 1-24) [Available from SOAS
library]
Harvey, David (2005). A Brief History of Neoliberalism, New York: Oxford University Press. (pgs.
1-38)
Beaud, Michel (2001). “The End of the Twentieth Century: An Accelerating Transformation of
the Contemporary World?”, A History of Capitalism, 1500-2000, trans. by Tom Dickman and
Anny Lefebvre, New York: Monthly Review Press.
Supplementary Readings
Sachs, Jeffrey D. (1995). “Consolidating Capitalism”, Foreign Policy, Spring, No. 98: 50-64.
Weeks, J. (2000) ‘Latin America and the ‘High Performing Asian Economies’: Growth and Debt’,
Journal of International Development 12 (5) pp.625-654. [Available from InterScience Wiley.]
Fine, B. (2006) ‘Financial Programming and the IMF’, in: Jomo K.S. and B. Fine (eds.) The New
Development Economics after the Washington Consensus. London: Zed Books. [Available from
SOAS Library.]
Dreher, A. (2006) ‘IMF and Economic Growth: The Effects of Programs, Loans, and Compliance
with Conditionality’, World Development 34 (5), pp.769-788. [Available from Science Direct.]
Bird, G. (2002) ‘The Completion Rate of IMF Programmes: What We Know, Don’t Know and
Need to Know’, The World Economy 25 (6), pp.833-894. [Available from EBSCOhost.]
Boughton, J.M. (2000) ‘From Suez to Tequila: The IMF as Crisis Manager’, Economic Journal
11
110 (460), pp.273-291. [Available from JSTOR.]
Hayter, T. (2005) ‘Secret Diplomacy Uncovered: Research on the World Bank in the 1960s and
1980s’, in: U. Kothari (ed.) A Radical History of Development Studies: Individuals, Institutions
and Ideologies. London: Zed Books. [Available from SOAS Library.]
Lee, S. (2002) ‘Global Monitor: The International Monetary Fund’, New Political Economy 7 (2),
pp.283-298. [Available from IngentaConnect.]
V. Jamal, ‘Inequalities and Adjustment in Uganda’. Development and Change 22, 1991, pp.321337. [Available from SOAS Library.]
McKinnon, R. ‘The Order of Economic Liberalization: Lessons from Chile and Argentina.’
Carnegie-Rochester Conference Series on Public Policy 17, 1982, pp.159-186. (see also: A.
Stockman. ‘The Order of Economic Liberalization: Lessons from Chile and Argentina: A
Comment’; R. McKinnon. ‘Reply to Alan Stockman’; J. Frenkel. ‘The Order of Economic
Liberalization: Lessons from Chile and Argentina: A Comment’). [Available from Birkbeck
library.]
Mosley, P., Subasat, T. and Weeks, J. (1995) ‘Assessing Adjustment in Africa’, World
Development, 23 (9) pp.1459-1472. [Available from ScienceDirect.]
Pastor, M. (1987) ‘The Effects of IMF Programs in the Third World: Debate and Evidence from
Latin America’. World Development, 15 (2) pp.249-262. [Available from ScienceDirect.]
Pender, J. (2001) ‘From ‘Structural Adjustment’ to ‘Comprehensive Development Framework’:
Conditionality Transformed?’, Third World Quarterly 22 (3), pp.397-411. [Available from
EBSCOhost.]
Vreeland, J.R. (2002) ‘The Effect of IMF Programs on Labor’, World Development 30 (1), p.121139. [Available from ScienceDirect.]
Wade, R. (2002) ‘US Hegemony and the World Bank: The Fight over People and Ideas’, Review
of International Political Economy 9 (2), pp.215-243. [Available from IngentaConnect.]
Interpreting the Political Economy of Development
3
Neoclassical Approaches to Development
19 Oct
Adam Hanieh
This lecture examines the most influential neoclassical (mainstream) analyses of the process of
economic development, including the stages of growth model and recent neoclassical theories.
It examines the arguments for the superior social efficiency of free, unregulated markets and the
underlying assumptions driving these arguments. It also examines the rise of the ‘Washington
Consensus’, and the main strengths and weaknesses of this consensus.
Core Readings
(RP) Hunt, D. (1989) Economic Theories of Development, Hemel Hempstead, Harvester
Wheastheaf, chapters 2-4 and 10 (only chapter 10, pp.292-332, in reading pack). [Available
from SOAS Library.]
(online) Naim, M. (1999) ‘Fads and Fashion in Economic Reforms: Washington Consensus or
12
Washington Confusion?’. [Available from the IMF website.]
(RP) Saad-Filho, A. (2005) ‘From Washington to Post-Washington Consensus: Neoliberal
Agendas for Economic Development’, in: A. Saad-Filho and D. Johnston (eds.) Neoliberalism: A
Critical Reader. London: Pluto Press. [Available from SOAS Library.]
(RP) Fine, B. (2006) ‘The New Development Economics’, in: Jomo K.S. and B. Fine (eds.) The
New Development Economics after the Washington Consensus. London: Zed Books. [Available
from SOAS Library.]
Essay Question
The correct application of conventional stabilisation and structural adjustment policies leads to
higher growth rates and to a more stable balance of payments than would be the case
otherwise. Discuss with reference to one country.
Recommended Readings
Gore, C. (2000) ‘The Rise and Fall of the Washington Consensus as a Paradigm for Developing
Countries’, World Development 28 (5), pp.789-804. [Available from ScienceDirect.]
Bauer, P. (1991) The Development Frontier: Essays in Applied Economics. London, Harvester
Wheatsheaf. [Available from SOAS Library.]
Lal, D. (2002) The Poverty of Development Economics, Westminster : Institute of Economic
Affairs. [Available from SOAS t.]
Schotter, A. (1990) Free Market Economics, Oxford: Blackwell, chapters 1-5, pp.1-88.
[Available from SOAS Library.]
Stern, N. (1989) ‘The Economics of Development: A Survey’. Economic Journal 99, pp.597685. [Available from JSTOR.]
Supplementary Readings
Bhagwati, J., Brecher, R. and Srinivasan, T.N. (1984) ‘DUP Activities and Economic Theory’,
European Economic Review, 24, pp.291-307. [Available from ScienceDirect.]
Gerschenkron, N. (1962) Economic Backwardness in Historical Perspective. Cambridge, Mass:
Harvard University Press. [Available from SOAS Library.]
Hirschman, A.O. (1989) ‘Linkages’, in Eatwell, Milgate and Newman (eds.) The New Palgrave
Dictionary of Economics: Economic Development, London: MacMillan. [Available from SOAS
Library.]
Hunt, E.K. (1995) Property and Profits: The Evolution of Economic Institutions and Ideologies,
New York: HarperCollinsCollege Publishers, chapter 8. [Available from SOAS Library.]
Krueger, A. (1974) ‘The Political Economy of the Rent-Seeking Society’, American Economic
Review 64, June, pp.291-303. [Available from JSTOR.]
Lewis, A. (1954) ‘Economic Development with Unlimited Supplies of Labour’, Manchester
School 22, pp.139-191. [Available from Senate House Library.]
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Mackintosh, M. (1996) Economics and Changing Economies, London: International Thomson
chapters 3, 4, 7. [Available from SOAS Library.]
Rostow, W.W. (1971) The Stages of Economics Growth: A Non-Communist Manifesto. London:
Cambridge University Press. [Available from SOAS Library.]
Scitovsky, T. (1989) ‘Balanced Growth’, in Eatwell, Milgate and Newman (eds.) The New
Palgrave Dictionary of Economics: Economic Development, London: MacMillan. [Available from
SOAS Library.]
Stiglitz, J. (1999) ‘Whither Reform? Ten Years of the Transition’, Keynote Address to the Annual
World Bank Conference on Development Economics. [Available from Senate House Library.]
Williamson, J. (2003) ‘From Reform Agenda to Damaged Brand Name: A Short History of the
Washington Consensus and Suggestions for What to do Next’, Finance and Development,
September. [Available from the IMF website.]
4
Marxism and Development
26 Oct
Thomas Marois
These theories of economic development derive from Marx’s analysis of the nature of
capitalism. They have four parts: the theory of capitalist reproduction, the analysis of primitive
accumulation, the study of the impact of capitalism on non-capitalist social structures, and the
theory of transition from capitalism to communism.
Core Readings (NOTE: the RP readings will be listed under Week Five)
(online) Marx, K. (1867) Capital, Vol. 1. Part VIII, Harmondsworth: Penguin Books (1981
edition), chapters 26 and 30. [Available from the Marxists Internet Archive website.]
(RP) Kiely, R. (1995) Sociology and Development: The Impasse and Beyond. London: UCL
Press, chapter 2, pp.11-59. [Available from SOAS Library.]
(RP) Brenner, R. (2007) ‘Property and Progress: Where Adam Smith Went Wrong’, in C.
Wickham (ed.) Marxist History-Writing for the Twenty-First Century. Oxford: Oxford University
Press. [Available from SOAS Library.]
(RP) Fine, B. and Saad-Filho, A. (2004) Marx’s Capital, 4th ed. London: Pluto Press, chapter 14.
[Available from SOAS Library.]
Essay Question
Examine the development of capitalism in one country in the post WWII era through the prism of
the Marxist analysis of primitive accumulation.
Recommended Readings
Patnaik, P. (2006) ‘Karl Marx as a Development Economist’, in: Jomo K.S. (ed) The Pioneers of
Development Economics: Great Economists on Development, London: Zed Books.
[Available from SOAS Library.]
Wood, E.M. (1995) Democracy against Capitalism: Renewing Historical Materialism.
14
Cambridge: Cambridge University Press, introduction. [Available from SOAS Library.]
Weeks, J. (1985-86) ‘Epochs of Capitalism and the Progressiveness of Capital’s Expansion’,
Science and Society pp.414-435. [Available from Senate House Library.]
Wood, E.M. (1995) Democracy against Capitalism: Renewing Historical Materialism.
Cambridge: Cambridge University Press, chapter 1. [Available from SOAS Library.]
Supplementary Readings
Bagchi, A.K. (1987) The Political Economy of Underdevelopment. Cambridge: Cambridge
University Press, chapters 2-5.
[Available from SOAS Library.]
Bottomore, T. (ed.) (1991) A Dictionary of Marxist Thought. Oxford, Basil Blackwell.
[Available from SOAS Library.]
Brenner, R. (1977) ‘The Origins of Capitalist Development: A Critique of Neo-Smithian Marxism’
New Left Review 104, pp.25-92.
[Available from the New Left Review website. You will need to be on campus to access this
resource.]
Brenner, R. (1986) ‘The Social Basis of Economic Development’, in J. Roemer (ed.) Analytical
Marxism. Cambridge: Cambridge University Press.
[Available from SOAS Library.]
Brewer, A. (1990) Marxist Theories of Imperialism: A Critical Survey. London: Routledge,
chapters 1-6. [Available from SOAS Library.]
Byres, T. (2005) ‘Neoliberalism and Primitive Accumulation in Less Developed Countries’, in A.
Saad-Filho and D. Johnston (eds.) Neoliberalism: A Critical Reader. London: Pluto Press.
[Available from SOAS Library.]
Comninel, G. (2000) ‘English Feudalism and the Origins of Capitalism’, Journal of Peasant
Studies 27 (4), pp.1-53. [Available from SOAS Library.]
Etherington, N. (1984) Theories of Imperialism: War, Conquest and Capital. London: Croom
Helm. [Available from SOAS Library.]
Fine, B. and Saad-Filho, A. (2004) Marx’s Capital, 4th ed. London: Pluto Press. [Available from
SOAS Library.]
Hobsbawm, E. (1987) Age of Empire. London: Weidenfeld and Nicolson, chapter 3.
[Available from SOAS Library.]
Howard, M.C. and King, J.E. (1992) A History of Marxian Economics, Vol. 2, London: Macmillan,
chapters 9-10. [Available from SOAS Library.]
Lenin, V.I. (1996) Imperialism, the Highest Stage of Capitalism, London: Julius Publishers.
[Available from SOAS Library.]
Marx, K. (2000) Karl Marx: Selected Writings (ed. by D. McLellan). Oxford: Oxford University
Press, pp.617-619 (Letter to Mikhailovsky), pp.623-628 (Letter to Vera Sassoulitch), and pp.631632 (Preface to the Russian Edition of the Communist Manifesto).
[Available from SOAS Library.]
15
Marx, K. and Engels, F. (1848), The Communist Manifesto, any edition. [Available from SOAS
Library.]
Saad-Filho, A. (2002) The Value of Marx: Political Economy for Contemporary Capitalism.
London: Routledge. [Available from SOAS Library.]
Saad-Filho, A. (2003) ‘Introduction’ and chapter 1, in Anti-Capitalism: A Marxist Introduction.
London: Pluto Press. [Available from SOAS Library.]
Ste.Croix, G. de (1984) ‘Class in Marx’s Conception of History, Ancient and Modern’, New Left
Review 146, pp.94-111. [Available from the New Left Review website. You will need to be on
campus to access this resource.]
Thompson, E.P. (1967) ‘Time, Work-Discipline, and Industrial Capitalism’, Past and Present 38,
pp.56-97. [Available from JSTOR.]
Trotsky, L. (1997) The History of the Russian Revolution. London: Pluto Press, chapter 1.
[Available from SOAS Library.]
Weeks, J. (1997) ‘The Law of Value and the Analysis of Underdevelopment’. Historical
Materialism, 1, pp.91-112. [Available from LSE Library.]
Wood, E.M. (1984) ‘Marxism and the Course of History’ New Left Review 147, pp.95-107.
[Available from the New left Review website. You will need to be on campus to access this
resource.]
5
New Institutionalism and the Post-Washington
Consensus
02
Nov
Jonathan Di John
New institutionalism and the so-called Post-Washington consensus have made a considerable
impact in economic theory and development policy-making in the 1990s. This topic examines
critically the theoretical foundations of new institutionalism and the ensuing policy prescriptions,
with particular attention to the reactions of the Bretton Woods Institutions to critics of adjustment
policies in LDCs, and the policy recommendations of the Post-Washington Consensus.
Core Readings (NOTE: the RP readings are under Week Four)
(RP) Bates, R. (1995). Social Dilemmas and Rational Individuals: An assessment of the new
institutionalism, in in Harriss J., Hunter, J. and Lewis, C. eds. New Institutional Economics and
Third World Development. London: Routledge. [Available from SOAS Library.]
(online) Bardhan P. (2000). ‘Understanding Underdevelopment: Challenges for Institutional
Economics from the point of view of Poor Countries’, Political Economy Seminar Series, Leitner
Program, Yale University, paper presented on 14 February 2000. [Available from the CiteSeer
website.]
(RP) D. North (1981). Structure and Change in Economic History. New York: Norton. Pages: 2032; 211-220. [Available from SOAS Library.]
(online) Rodrik, D. (2003). Growth Strategies, a paper for the Handbook of Economic Growth,
revised September 2003, pp. 1-39 plus tables. [Available from the Harvard website.]
Essay Question
16
Good governance is more a result of economic development than an input into rapid growth in
late developers. Discuss the theoretical and policy implications of this statement.
Recommended Readings
Stiglitz J. (1998) ‘More Instruments and Broader Goals: Moving toward the Post-Washington
Consensus’, WIDER Annual Lecture 2. [Available from the WIDER website.]
Fine B. (2001) ‘Neither the Washington nor the Post-Washington Consensus: An Introduction’,
in B. Fine, C. Lapavitsas and J. Pincus (eds.), Development Policy in the Twenty-first Century:
Beyond the Post-Washington Consensus, London: Routledge. [Available from SOAS Library.]
Chang, H.J. (2002). Kicking away the ladder: development strategy in historical perspective.
London: Anthem Press, chapter 3, pp 69-124. [Available from SOAS Library.]
Khan, M.H. (1995) State Failure in Weak States: A Critique of New Institutionalist Explanations,
in Harris, J. Hunter, J. and Lewis, C. (eds.), The New Institutional Economics and Third World
Development, pp. 71-86. London: Routledge. [Available from SOAS Library.]
Bardhan, P. (2000) Institutional Impediments to Development, in M. Olson and S. Kähkönen
(eds.) A Not-So-Dismal Science: A Broader View of Economies and Societies, Oxford: Oxford
University Press, pp. 245-267. [Available from SOAS Library.]
Khan, M.H. (2002) State Failure in Developing Countries and Strategies of Institutional Reform,
paper presented at World Bank Conference on Development Economics, Oslo. June. [Available
from the GSDRC website.]
Williamson, J. (2000) What Should the World Bank Think about the Washington Consensus,
The World Bank Research Observer, Vol. 15, No. 2. August 2000, pp. 251-264. [Available from
the World Bank website.]
Williamson, J. (1990) What Washington Means by Policy Reform, in Williamson, J. (ed.) 1990.
Latin American Adjustment: How Much Has Happened? (includes comments by other authors
on the article). Washington: Institute for International Economics. [Available from SOAS
Library.]
Supplementary Readings
World Bank, (1997) World Development Report: The State in a Changing World. Oxford: Oxford
University Press. [Available from UCL Library.]
Pincus, J. and Winters, J. (2002) Reinventing the World Bank, in Pincus, J. and Winters, J.(eds.)
Reinventing the World Bank. Ithaca: Cornell University Press, pp. 1-25, bibliography pp. 227249. [Available from SOAS Library.]
Thorbecke, E. (2000) The evolution of development practice and the role of foreign aid 19502000, in F. Tarp and P. Hjertholm (eds.) Foreign Aid and Development. London: Rouytledge, pp.
19-47. [Available from SOAS Library.]
North, D. (1990) Institutions, Institutional Change and Economic Performance. Cambridge:
Cambridge University Press. [Available from SOAS Library.]
Harriss J. , Hunter, J. and Lewis, C. eds. (1995) New Institutional Economics and Third World
17
Development. London: Routledge. [Available from SOAS Library.]
Knight, J. (1992) Institutions and Social Conflict. Cambridge: Cambridge University Press.
(especially chapters 1-3). [Available from SOAS Library.]
Coase, R. (1988) The Firm, the Market and the Law. Chicago: University of Chicago Press.
[Available from SOAS Library.]
Eggertsson, T. (1990) Economic Behavior and Institutions, Cambridge University Press.
[Available from SOAS Library.]
Wood, E.M. (1999) The Origins of Capitalism. New York: Monthly Review Press. [Available
from SOAS Library.]
G. Standing (2000) ‘Brave New Words? A Critique of Stiglitz’s World Bank Rethink’,
Development and Change 31 (4), pp.737-763. [Available from EBSCOhost.]
Menard, C. (2001). ‘Methodological Issues in New Institutional Economics’, Journal of Economic
Methodology, Vol. 8 (1): 85-92. [Available from EBSCOhost.]
J. Stiglitz (1986) ‘The New Development Economics’, World Development, Vol.14, No.2, pp.257265. [Available from ScienceDirect.]
J. Stiglitz (2002). Globalization and its Discontents, Norton: New York, especially chapters 2 and
3. [Available from SOAS Library.]
Hodgson G. (1988). Economics and Institutions. Oxford: Polity Press. [Available from SOAS
Library.]
H.-J. Chang (ed.) (2003) Rethinking Development Economics, London: Anthem Press, chapters
21 and 22. [Available from SOAS Library.]
B. Fine (2001) Social capital versus social theory: political economy and social science at the
turn of the millennium, London: Routledge, especially Introduction and chapters 2, 5, and 8.
[Available from SOAS Library.]
Sender, J. (2002). ‘Reassessing the Role of The World Bank in Sub-Saharan Africa’, in J.
Pincus and J. Winters (ed.), Reinventing the World Bank. London: Cornell University Press.
[Available from SOAS Library.]
Dorward A., J. Kydd and C. Poulton (eds.), (1998). Smallholder cash crop production under
market liberalization: a New Institutional Economics perspective. CAB International, especially
chapters 1 and 5. [Available from SOAS Library.]
READING WEEK 8-12 November
18
Inequality and Development
6
Catching Up or Falling Behind? – Global
Income Distribution
16
Nov
Carlos Oya
There is a growing debate over trends in global inequality, especially since 1980. In the very
long term, i.e. over the last one hundred years the evidence suggests that levels of development
in terms of income per capita across countries have tended to diverge. However, from 1980,
some authors defend the hypothesis of convergence whereas others claim that global income
inequality has continued to rise. The literature links these trends to the process of globalisation
of the world capitalist system, which has its detractors and strong advocates. The debate on
convergence/divergence is affected by significant methodological issues and also by some
ideological biases. Therefore this lecture reviews both the debate over global income inequality
between countries, with a special emphasis on data problems, and the debate on what drives
convergence or divergence.
Core Readings
(RP) Cornia, G.A. (2003) ‘Globalization and the Distribution of Income between and within
Countries’ in Rethinking Development Economics edited by H.J. Chang, pp. 423-510.
[Available from SOAS Library.]
(online) Kenny C. (2005) ‘Why Are We Worried About Income? Nearly Everything that Matters is
Converging’ World Development 33 (1): 1-19. [Available from ScienceDirect.]
(online) Sutcliffe B. (2005) ‘A Converging or Diverging World?’ UN DESA Working Paper No. 2.
[Available from the UN website.]
(online) Milanovic, B. (2003). ‘The two faces of globalization: against globalization as we know
it’. World Development 31 (4), pp. 667-683. [Available at ScienceDirect.]
Essay Question
Explain the main reasons for the disagreements over global inequality trends since 1980 and
discuss the main policy implications of the debate.
Recommended readings
* Rapley J. (2001). ‘Convergence: Myths and Reality’ Progress in Development Studies, 1 (4):
295-308. [Available from EBSCOhost]
* Bourguignon, F. and C. Morrison (2002). ‘Inequality among world citizens: 1820-1992’,
American Economic Review, 92 (4): 727-44 [Available from JSTOR]
* Milanovic, B. (2005). Worlds Apart. Measuring International Inequality. Princeton: Princeton
University Press. [Available from SOAS Library.]
* Wade R. (2004) ‘Is Globalization Reducing Poverty and Inequality?’ World Development Vol.
32, No. 4, pp. 567–589.
19
[Available from ScienceDirect.]
* Sala-i-Martin, X. (2006), ‘The World Distribution of Income: Falling Poverty and...
Convergence, Period’, Quarterly Journal of Economics, v.121 (2), May, pp. 351-97. Available
from the Columbia website
Supplementary readings
Amsden A. (2007) Escape from Empire: The Developing World’s Journey Through Heaven and
Hell, Cambridge, MA: MIT Press, chapter 10.
[Available from SOAS Library.]
Bairoch P. and R. Kozul-Wright (1996) ‘Globalization Myths: Some Historical Reflections on
Integration, Industrialization and Growth in the World Economy’, Unctad Discussion Paper
no.113.
[Available from UNCTAD website.]
Basu K. (2006) ‘Globalization, poverty, and inequality: What is the relationship? What can be
done?’ World Development Vol. 34, 8, pp. 1361-1373
[Available from ScienceDirect.]
Bhalla, Surjit S (2002) Imagine There’s No Country: Poverty, Inequality and Growth in the Era of
Globalization Institute for International Economics.
[Available from UCL Library.]
Borocz J. (2005) ‘Redistributing Global Inequality: A Thought Experiment’ Economic and
Political Weekly February 26th.
[Available from SOAS Library.]
Capeau B. and A. Decoster (2004) ‘The Rise or Fall of World Inequality: A Spurious
Controversy?’ WIDER Discussion Paper 2004/02.
[Available from the WIDER website.]
Dowrick S. and M. Akmal (2003). ‘Contradictory Trends in Global Income Inequality: A Tale of
Two Biases’, paper presented in WIDER conference on ‘Inequality, Poverty and Human Well
Being’, Helsinki, May.
[Available from the World Bank website.]
Easterlin R.A. (2000) ‘The Worldwide Standard of Living Since 1800’, Journal of Economic
Perspectives 14 (1).
[Available from JSTOR.]
Glyn A. (2005) ‘Imbalances of the Global Economy’ New Left Review no. 34: 5-37.
[Available from the New Left Review website.You will need to be on campus to access this
resource.]
Glyn, Andrew (2006), Capitalism Unleashed: Finance, Globalization and Welfare, Oxford: OUP.
[Available from SOAS Library.]
Hildebrand E. (2008). ‘The Global Distribution of Income in 2050’, World Development Vol. 36,
No. 5, pp. 727–740
[Available from ScienceDirect.]
Irvin, G. (2008). Super Rich: The Growth of Inequality in Britain and the United States, London:
Polity.
[Available from the LSE library]
20
Jomo K.S. and Jacques Baudot (eds) (2007). Flat World, Big Gaps: Economic Liberalization,
Globalization and Inequality. London: Zed Books.
[Available from SOAS Library.]
Jones C.I. (1997) ‘On the Evolution of the World Income Distribution’, Journal of Economic
Perspectives 11 (3), pp.19-36.
[Available from JSTOR.]
Kitching G., 2001. Seeking Social Justice through Globalization: Escaping a Nationalist
Perspective. Pennsylvania: Pennsylvania State University Press.
[Available from SOAS Library.]
Maddison A. (2006) The World Economy, Volumes 1 and 2. Paris: OECD.
[Available from UCL Library and SOAS Library]
Milanovic B. (2004) ‘Half a World: Regional inequality in five great federations’ Paper for the
Globalization and Inequality Group at the Brookings Institution.
[Available from the Brookings website.]
Patnaik, P. (2009) ‘A Perspective on the Growth Process in India and China’, IDEAS Working
Paper 05/2009
[Available at the IDEAS website]
Prichett L. (1997) ‘Divergence, Big Time’, Journal of Economic Perspectives 11 (3) pp.3-17.
[Available from JSTOR.]
Pritchett L. and L. Summers (1996) 'Wealthier is Healthier', Journal of Human Resources 31 (4),
pp.841-866.
[Available from EBSCOhost.]
Rapley J. (2004) Globalization and Inequality: Neoliberalism’s Downward Spiral, Boulder:
Rienner.
[Available from SOAS Library.]
Seers, D. (1983) The Political Economy of Nationalism, Oxford: Oxford University Press.
[Available from the UCL library]
Seguino S. (2000) 'Gender Inequality and Economic Growth: A Cross-Country Analysis', World
Development 28 (7).
[Available from ScienceDirect.]
Srinivasan T.N. (1994), 'The Data Base for Development Analysis: An Overview', special issue
of the Journal of Development Economics 44 (1), pp.3-27. See also other authors in this special
issue. [Available from ScienceDirect.]
Sutcliffe, Bob and Andrew Glyn (1999) ‘Still underwhelmed: Indicators of globalization and their
misinterpretation’, Review of Radical Political Economics, 31, 1, pp. 111-131 [Available from
Science Direct.]
Taylor L. and Codrina Rada ‘Can the Poor Countries Catch Up? Sources of Growth Accounting
Gives Weak Convergence for the Early 21st Century’ CEPA paper.
[Available from the Newschool website.]
Thirlwall (2002) The Nature of Economic Growth. Edgar: London.
[Available from SOAS Library.]
Weeks J. (2001) ‘The Expansion of Capital and Uneven Development on a World Scale’, Capital
21
and Class 74, pp.9-30.
[Available from EBSCOhost.]
Also check the following site at the World Bank:
http://www.worldbank.org/research/inequality
7
23
Nov
Inequality and Development
Chris Cramer
[NOTE: lecture is @ Kennedy Lecture Theatre, UCL's Institute of Child Health,
30 Guilford Street, WC1N 1EH]
What is the relationship between Inequality and Development? Are there, for example,
significant complementarities between greater equity and greater development? From the
1950s, economists were preoccupied with the validity of the Kuznets Curve, which appeared to
show that inequality of income first increased during the process of development (i.e., as income
per person rose); then inequality stabilized and eventually declined. This is the famous Kuznets
‘Inverted U’ hypothesis of the relationship between inequality and income level. There has been
endless debate about, and empirical investigation of, the relationship between inequality and
growth. More recently, the international development community has argued that faster growth
and greater equity should be pursued jointly. This has taken the form of advocating for ‘Pro-Poor
Growth’. Some have argued, in fact, that higher inequality is an impediment to growth. However,
most recently, the framework of ‘Pro-Poor Growth’ has come under criticism and been replaced
by ‘Inclusive Growth’, which appears to place less weight on the importance of greater equity,
especially with regard to poverty reduction.
Core Readings
(online) Kuznets, S. (1955). ‘Economic Growth and Income Inequality.’ American Economic
Review, Vol.45, pp.1-25. [Available from JSTOR.]
(online) World Bank (2006) World Development Report 2006: Equity and Development,
Overview, Washington DC: World Bank.
[Available from World Bank website]
(online) Kakwani, Nanak, Shahid Khandker and Hyun H. Son (2004). ‘Pro-Poor Growth:
Concepts and Measurements with Country Case Studies.’ Working Paper #1, International
Poverty Centre, Brasilia, August. [Available from International Poverty Centre website ]
(online) Cornia, G. A. and Julius Court (2001). ‘Inequality, Growth and Poverty in an Era of
Liberalization and Globalization’, Policy Brief No. 4, Helsinki: UNU-World Institute for
Development Economics Research. [Available from the WIDER website:]
Essay Question
Evaluate the basis on which Equity and Development could be complementary or contradictory
objectives. Relate your discussion to the recent debate on whether public policies should seek
to achieve ‘Pro-Poor Growth’.
22
Recommended Readings
Wilkinson, Richard and Kate Pickett (2010), The Spirit Level: Why more equal societies almost
always do better, London: Penguin.
Bourguignon, Francois (2004). ‘The Poverty-Growth-Inequality Triangle.’ Paper presented at the
Indian Council for Research on International Economic Relations, New Delhi, February 4.
[Available at the ICRIER website]
Chenery, Hollis, M.S. Ahluwalia, J.H. Duloy, C.L.G. Bell and Richard Jolly (1974). Redistribution
with Growth: Policies to Improve Income Distribution in Developing Countries in the Context of
Economic Growth. London: Oxford University Press. [Available in the SOAS library]
Cramer, Christopher (2000), ‘Inequality, Development and Economic Correctness’, Department
of Economics Working Paper No.105, London: SOAS. [Available from SOAS Economics
Department website.]
Deininger, Klaus, and Pedro Olinto (2000), ‘Asset Distribution, Inequality, and Growth’, World
Bank Working Paper No.: 2375. [Available from the World Bank website.]
McKinley, Terry (2009). ‘Revisiting the Dynamics of Growth, Inequality and Poverty Reduction.’.
Discussion Paper, Centre for Development Policy and Research, SOAS, May.
[Available from the CDPR website]
Ravallion, Martin (2004). “Pro-Poor Growth: a Primer.” Development Research Group,
Washington DC: the World Bank [Available at the World Bank website
Seguino, Stephanie (2000), ‘Accounting for Gender in Asian Economic Growth’, Feminist
Economics, Vol.6, No.3, pp.27-58. [Available from EBSCOhost.]
Stewart, Frances (ed.) (2008), Horizontal Inequalities and Conflict: Understanding Group
Violence in Multiethnic Societies, Basingstoke: Palgrave Macmillan, chapters 5 and 7.
[Available from SOAS Library.]
Supplementary Readings
Atkinson, Anthony and Andrea Brandolini (2001), ‘Promise and Pitfalls in the Use of ‘Secondary’
Data-Sets: Income Inequality in OECD Countries as a Case Study’, Journal of Economic
Literature, Vol.XXXIX (September), pp.771-799. [Available from JSTOR.]
Birdsall, Nancy (2006), “The World is not Flat: Inequality and Injustice in our Global Economy”,
WIDER Annual Lecture 9, Helsinki. [Available from the WIDER website.]
Birdsall, Nancy, David Ross and Richard Sabot (1995), ‘Inequality and Growth Reconsidered:
Lessons from East Asia’, The World Bank Economic Review, Vol.9, No.3, pp.477-508, ISSN
0258-6770. [Available from Oxford Journals.]
Persson, T. and G. Tabellini (1994), ‘Is Inequality Harmful for Growth?’, The American Economic
Review, Vol.LXXXIV (3), pp.600-621. [Available from JSTOR.]
Bowman, K (1997), ‘Should the Kuznets Effect be Relied on to Induce Equalizing Growth:
Evidence from Post-1950 Development’, World Development, Vol.25, No.1, pp.127-143, ISSN
23
0305-750X. [Available from ScienceDirect.]
Cramer, Christopher (2003), “Does Inequality Cause Conflict?”, Journal of International
Development, Special Issue: Explaining Violent Conflict: Going Beyond Greed versus Grievance
Vol.15, No.4. [Available from Wiley InterScience.]
Alesina, A. and R. Perotti (1993), ‘Income Distribution, Political Instability, and Investment’,
Working Paper No.4486, Cambridge, Mass: National Bureau of Economic Research.
[Available from SOAS Library.]
Amsden, Alice (2001), The Rise of the Rest: Challenges to the West from Late Industrializing
Economies, Oxford: OUP, pp.225-238. [Available from SOAS Library.]
Kaldor, Nicholas (1989), ‘Alternative Theories of Distribution’ in Targetti, F. and A.P. Thirlwall
(eds.), The Essential Kaldor, New York: Holmes and Meier, pp.201-228). [Available from SOAS
Library.]
Lewis, W.A. (1983), ‘Development and Distribution’, in Gersovitz, M (ed.), Selected Economic
Writings of W. Arthur Lewis, New York: New York University Press, pp.443-459. [Available at
SOAS Library.]
J. Mbabazi, O. Morrissey & C. Milner, 2003. ‘The fragility of empirical links between inequality,
trade liberalization, growth and poverty’ in Perspectives on Growth and Poverty, edited by R.
vand der Hoeven and A. Shorrocks, chapter 4, UNU/WIDER, Tokyo: Uniterd Nations University
Press. [Available from SOAS Library.]
Frazer, Garth (2006), “Inequality and Development Across and Within Countries”, World
Development 34 (9) [Available from SOAS Library.]
Shorrocks, A and Rolf van der Hoeven (eds) (2004), Growth, Inequality and Poverty: Prospects
for pro-poor economic development, UNU/WIDER, Oxford: OUP. [Available from SOAS
Library.]
Moll, Terence (1992), ‘Mickey Mouse Numbers and Inequality Research in Developing
Countries’, Journal of Development Studies, Vol.28, No.4, pp.689-704. [Available from
EBSCOhost.]
Tilly, Charles (1999), Durable Inequality, Berkeley: University of California Press.
[Available from SOAS Library.]
Singh, Ajit and Rahul Dhumale (2000), ‘Globalization, Technology, and Income Inequality’,
WIDER Working Paper no. 210 [Available from SOAS Library.]
Devereux, Stephen, Admassa Teshome and Rachel Sabates-Wheeler (2005), Too Much
Inequality or Too Little? Inequality and Stagnation in Ethiopian Agriculture, IDS Bulletin, Vol.36,
No.2, June. [Available from IngentaConnect.]
UNDP (2005), “Inequality and Human Development”, chapter 2 in Human Development Report
2005, Geneva: UNDP. [Available from SOAS Library.]
24
Key Topics of Political Economy of Development
8
30
Nov
Finance and Development
Thomas Marois
What is the relationship between finance and development? This lecture explores some of the
basic elements of financing for capitalist development, its historical specificity, and the
relationships of power in which finance is embedded. Part of the lecture will be dedicated to
questioning the role of microfinance as either a solution to or as an alternative form of capitalist
development.
Core Readings
(RP) Lapavitsas, Costas (2003). “Money as Money and Money as Capital in a Capitalist
Economy”, Anti-Capitalism: A Marxist Introduction, ed. by Alfredo Saad-Filho, London: Pluto
Press.
(RP) Itoh, Makoto and Costas Lapavitsas (1999). “The Credit System”, Political Economy of
Money and Finance, London: MacMillan Press. (pgs. 83-102) [Available from SOAS library]
(RP) Soederberg, Susanne (2004). “Transcending the ‘Common Sense’ of the New International
Financial Architecture”, The Politics of the New International Financial Infrastructure:
Reimposing Neoliberal Domination in the Global South, New York: Zed Books.
(online) Weber, Heloise (2004), “The New Economy and Social Risk: Banking on the Poor”,
Review of International Political Economy, 11, 2: 356-86. [Available from InformaWorld]
Essay Question
Who benefits from the increasing power of finance in development? In making your argument,
you must draw from a neoclassical/liberal AND from either a Marxian or institutional political
economy perspective.
Recommended Readings
Strange, Susan (1994/1988). “The Financial Structure”, States and Markets, 2nd edition, Pinter
Publishers, London. (pgs. 90-118) [Available from SOAS library]
Cohen, Benjamin J. (1995). "A Brief History of International Monetary Relations", International
Political Economy: Perspectives on Global Power and Wealth, 3rd ed., eds. by Jeffrey A.
Frieden, and David A. Lake, New York: St. Martin's Press. [Available from SOAS library]
Helleiner, Eric (1994). States and the Reemergence of Global Finance, Cornell University Press.
Itoh, Makoto and Costas Lapavitsas (1999). Political Economy of Money and Finance, London:
MacMillan Press.
Porter, Tony (2005). Globalization and Finance, Cambridge, UK: Polity Press. Pgs. 1-45.
Bello, W. (2006), ‘The Capitalist Conjuncture: Over-accumulation, Financial Crises, and the
Retreat from Globalisation’, Third World Quarterly, 27, 8: 1345-67.
25
Lapavitsas, Costas (2009). “Financialised Capitalism: Crisis and Financial Expropriation”,
Historical Materialism, 17: 114-148.
Bateman, Milford (2010). Why Doesn’t Microfinance Work? The Destructive Rise of Local
Neoliberalism, London: Zed Books.
Supplementary Readings
de Brunhoff, Suzanne (2003). “Financial and Industrial Capital: A New Class Coalition”, AntiCapitalism: A Marxist Introduction, ed. by Alfredo Saad-Filho, London: Pluto Press. (pgs. 142151)
Hilferding, Rudolf (1981) [1910]. Finance Capital, trans. by Morris Watnick and Sam Gordon,
London: Routledge and Kegan Paul.
Harvey, David (1999) [1982]. The Limits to Capital, New York: Verso. (Chapters 9 and 10, pgs.
239-329 in 1999 edition)
Hall, Mike (1992). “On the Creation of Money and the Accumulation of Bank Capital”, Capital
and Class, 48: 89-114. [Available from CSE Web]
Fine, Ben (2010). “Neoliberalism as financialisation”, Economic Transitions to Neoliberalism in
Middle-income Countries: Policy dilemmas, economic crises, forms of resistance, ed. By Alfredo
Saad-Filho and Galip Yalman, Routledge, Oxon, UK.
Panitch, Leo and Sam Gindin (2004). “Finance and American Empire,” The Socialist Register
2005: The Empire Reloaded, eds. by L. Panitch and C. Leys, London: The Merlin Press.
[Available from SOAS library]
Aybar, Sedat and Costas Lapavitsas (2001). “Financial system design and the post-Washington
consensus”, Development Policy in the Twenty-first Century: Beyond the post-Washington
consensus, ed. by Ben Fine, Costas Lapavitsas, and Jonathan Pincus, London: Routledge.
[Available from SOAS library]
Biewener, Carole (1989). “Socialist Politics and Theories of Money and Credit”, Review of
Radical Political Economics, 21, 3: 58-63. [Available from UCL library]
de Brunhoff, Suzanne (1976). Marx on Money, trans. by Maurice J. Goldbloom, New York:
Urizen Books. [Available from SOAS library]
McKinnon, Ronald I. (1973). Money and Capital in Economic Development, Washington, D.C.:
The Brookings Institute. [Available from SOAS library]
La Porta, Rafael, Florencio Lopez-de-Silanes, and Andrei Shleifer (2002). “Government
Ownership of Banks”, The Journal of Finance, 57, 1: 265-301. [Available from EBSCO]
Obstfeld, Maurice (1998). “The Global Capital Market: Benefactor or Menace?”, Journal of
Economic Perspectives, 12, 4: 9-30. [Available from JSTOR]
Andersen, Palle and Ramon Moreno (2005). “Financial Integration: An Overview”, BIS Papers,
23, May: 1-9.
Seabrooke, Leonard (2007). “Everyday Legitimacy and International Financial Orders: The
Social Sources of Imperialism and Hegemony in Global Finance”, New Political Economy, 12, 1:
1-18.
Ocampo, Jose Antonio, Jan Kregel, and Stephany Griffith-Jones (eds.) (2007). International
Finance and Development, ed. by, London: Zed Books. [Available from SOAS library]
26
Greig, Alastair, David Hulme, and Mark Turner (2007). “The Financial Architecture of Neoliberal
Development” (pgs. 116-128), Challenging Global Inequality: Development Theory and Practice
in the 21st Century, New York: Palgrave MacMillan. [Available from SOAS library]
Amsden. A. and Y. Euh (1993). “South Korea’s 1980’s Financial Reforms: Good-bye Financial
Repression (Maybe), Hello New Institutional Restraints”, World Development, 21, 3: 379-90.
[Available from ScienceDirect]
Lukauskas, Arvid and Susan Minushkin (2000). “Explaining Styles of Financial Market Opening
in Chile, Mexico, South Korea, and Turkey”, International Studies Quarterly, 44: 695-723.
[Available from JSTOR]
Haber, Stephen (2005). “Mexico’s Experiments with Bank Privatization and Liberalization, 19912003”, Journal of Banking and Finance, 29: 2325-53. [Available from ScienceDirect]
Pilbeam, K. (1998) International Finance, London, Macmillan, 2nd ed, chapters 11, 15 (pp.277310, 397-432). [Available from SOAS Library.]
Kozul-Wright, R. (2006) ‘Globalization Now and Again’, in Jomo K.S. (ed.) Globalization under
Hegemony: The Changing World Economy. Oxford: Oxford University Press.
[Available from SOAS Library.]
Studart, R. (2005) ‘The State, the Markets and Development Financing’, Cepal Review 85,
pp.19-32. [Available from the CEPAL website.]
9
07
Dec
Development Aid
Carlos Oya
What is the distribution and trends in aid flows to developing countries? What accounts for the
patterns of aid allocation? What are the most salient aspects in the political economy of aid to
developing countries? We will look at some of the trends and breakdown of origins and
destination of aid for selected countries to illustrate the political economy imperatives of aid
allocation. The lecture will particularly address different perspectives on the aid-effectiveness
debates, the pros and cons of aid in LDCs and the relationship between aid, state formation,
policies and growth. A case for increasing aid flows to the poorest countries will be made even
after considering efficiency gaps in current aid flows. Finally, the recent debate on new policy
conditionality, aid and poverty will also be addressed, including problems of aid re-allocation
between countries and sectors as well as the impact of new emerging donors in Africa (China,
India etc.).
Core Readings
(online) McGillivray et al. (2006), ‘Controversies over the Impact of Aid: It Works; It Doesn’t; It
Can but That Depends…’, Journal of International Development, 18, 1031–1050
[Available from Wiley InterScience]
(online) Fischer, A. (2009), ‘Putting Aid in Its Place: Insights from Early Structuralists on Aid and
Balance of Payments and Lessons for Contemporary Aid Debates’ Journal of International
Development, 21: 856–867 [Available from Wiley InterScience]
(RP) Oya, Carlos and N. Pons-Vignon (2010) ‘Aid, Development and the State in Africa’ in V.
Padayachee (ed) The Political Economy of Africa, London: Routledge, chapter 9, pp. 172-198.
27
(online) De Renzio, P. and J. Hanlon (2007). Contested Sovereignty in Mozambique: The
Dilemmas of Development. Global Economic Governance Programme Working Paper 2007/25.
[Available from the Global Economic Governance Programme website.]
Essay Question
‘A perverse consequence of aid dependence is that maximizing aid becomes one of the
recipient government’s primary goals.’ Discuss.
Recommended Readings
- * International Poverty Centre (2007). ‘Does Aid Work? – for the MDGs’, Poverty in Focus, pp.
1-28, October. This is a summary of results of recent influential publications on aid.
[Available from UNDP website.]
-* Whitfield, L. (2010). The Politics of Aid: African Strategies for Dealing with Donors. Oxford:
OUP. Especially chapters 1, 6, 8, 9 and 12.
- * Riddell R. (2007). Does Foreign Aid Really Work? Oxford: Oxford University Press.
[Available from SOAS Library.]
-* Birdsall N. (2008). ‘Seven Deadly Sins: Reflections on Donor Failings’. In Easterly (ed.)
Reinventing Foreign Aid, chapter 20. Cambridge, Mass.: MIT Press.
[Available from LSE Library.]
[Available from SOAS Library.]
- * Hanlon, J. and T. Smart (2008). Do Bicycles Equal Development in Mozambique? London:
James Currey. Chapter 11.
[Available from the SOAS library]
- * NB FOR DATA SOURCE ON AID: Roodman (2009). Net Aid Transfers data set (1960-2007)
[Available from the Center for Global Development website.]
- * World Bank-IDA 15 (2007), Aid Architecture: an Overview of the Main Trends in Official
Development Assistance Flows, Washington D. C., the World Bank
[Available from the Australian Development Gateway]
Supplementary Readings
- Action Aid (2005) Real Aid: An Agenda for Making Aid Work. Johannesburg.
[Available from the ActionAid website.]
- Alesina A. and D. Dollar (2000) ‘Who Gives Foreign Aid to Whom and Why?’ Journal of
Economic Growth 5, pp.33-62.
[Available from SpringerLink.]
- Arase, D. (2001) Japan’s Foreign Aid. London: Routledge.
- Auty R. (2008). Aid and Rent-Driven Growth: Mauritania, Kenya and Mozambique Compared,
Research Paper n. 2007/35, UNU-WIDER, Helsinki.
[Available from the WIDER website.]
- Banerjee A. V. et al. (2007). Making Aid Work. Cambridge, Mass.: MIT Press.
[Available from SOAS Library.]
28
- Benn H. and W. Easterly (2006). ‘Is Aid Working?’ Debate between Hillary Benn (former Head
of DFID) and W. Easterly in Prospect magazine, Issue 128, December.
[Available from the Prospect Magazine website.]
- Birdsall N. (2007). ‘Do No Harm: Aid, Weak Institutions and the Missing Middle in Africa’
Development Policy Review, 25 (5): 575-598.
[Available from EBSCOhost.]
- Brautigam D. and S. Knack (2004). ‘Foreign Aid, Institutions and Governance in Africa’
Economic Development and Cultural Change, 52:255–285
[Available from EBSCOhost.]
- Burnside C. And D. Dollar (2004) ‘Aid, Policies, and Growth: Revisiting the Evidence’ World
Bank Policy Research Working Paper 3251, March.
[Available from the World Bank website.]
- Castel-Branco C (2008). ‘Aid Dependency and Development: a Question of Ownership? A
Critical View’ IESE Working Paper n. 1/2008, Maputo, Mozambique.
[Available from the IESE website.]
- Chenery, H.B. and A.M. Stout (1966), “Foreign Assistance and Economic Development.”
American Economic Review, 56, pp. 679-733.
[Available from EBSCO]
- Clemens, Michael and Steven Radelet (2003). ‘Absorptive Capacity: How Much Is Too Much?’
in Steven Radelet, Challenging Foreign Aid: A Policymaker’s Guide to the Millennium Challenge
Account. Washington, DC: Center for Global Development.
[Available from SOAS Library.]
- Collier P. (2006). ‘Is Aid Oil? An Analysis of Whether Africa Can Absorb More Aid’ World
Development Vol. 34, No. 9, pp. 1482–1497.
[Available from ScienceDirect.]
- Degnbol –Martinussen J. and P. Engberg-Pedersen (2003) Aid: Understanding International
Development Cooperation. London: Zed Books. Chapter 2 and 12.
[Available from SOAS Library.]
- Dollar D. and V. Levin (2006). ‘The Increasing Selectivity of Foreign Aid, 1984–2003’ World
Development, 34 (12): 2034-2046.
[Available from ScienceDirect]
- Easterly W. (ed.) (2008). Reinventing Foreign Aid. Especially chapters 1, 2, 4, 10, 11,
Cambridge, Mass.: MIT Press.
[Available from LSE Library.]
[Available from SOAS Library.]
- Easterly W. (2006). The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have
Done So Much Ill and So Little Good. Oxford: Oxford University Press.
[Available from SOAS Library.]
- Easterly W., R. Levine and D. Roodman (2003) ‘New Data, New Doubts: A Comment on
Burnside and Dollar's 'Aids, Policies and Growth(2000)'‘ Development Research Institute (DRI)
Working Paper No. 4.
[Available from the New York University Development Research Institute.]
- Fielding D. and G. Mavrotas (2005) ‘The Volatility of Aid’ WIDER Discussion Paper n. 2005/06.
Helsinki: WIDER.
[Available from the WIDER website.]
- Glennie J. (2008). The Trouble with Aid: Why Less Could Mean More for Africa. London Zed
29
Books.
[Available from SOAS Library.]
- de Haan, A. (2009). How the Aid Industry Works. Sterling, VA: Kumarian Press.
- Hanlon, J., A. Barrientos and D. Hulme (2010). Just give money to the poor. Sterling, VA:
Kumarian Press.
- Heller P.S. (2005). ‘“Pity the Finance Minister”: Issues in Managing a Substantial Scaling Up of
Aid Flows’, IMF Working Paper WP/05/180.
[Available from the IMF website.]
- Hirschman, A.O. (1958) The Strategy of Economic Development, New Haven, Conn. ; London
: Yale University Press
[Available from the SOAS library]
- Hopkins R. (2000). ‘The political economy of aid’ in Foreign Aid and Development: Lessons
Learnt and Directions for the Future, edited by Finn Tarp. Chapter 19: 423-449.
[Available from SOAS Library.]
- Hudson J. (2004) ‘Introduction: Aid and Development’ Economic Journal 114, June 185-190.
Special Issue on Aid and Development.
[Available from EBSCOhost.]
- Independent Evaluation Office (2008). An IEO Evaluation of Structural Conditionality in IMFSupported Programs.
[Available from the IEO]
- Kanbur, R. (2000). ‘Aid, conditionality and debt in Africa’. In Foreign Aid and Development:
Lessons Learnt and Directions for the Future, edited by Finn Tarp, London: Routledge. Chapter
18: 409-422.
[Available from the SOAS library]
- Karras G. (2006), ‘Foreign Aid and Long-Run Economic Growth: Empirical Evidence for a
Panel of Developing Countries’ Journal of International Development 18: 15-28.
[Available from Wiley InterScience.]
- Lapavitsas C. (2007). ‘Using ODA to Accumulate Foreign Reserves in Sub-Saharan Africa’.
International Poverty Centre One Pager n. 37.
[Available from the IPC website.]
- Lensink R. and H. White (2000) ‘Assessing Aid: A Manifesto for Aid in the 21st Century’, Oxford
Development Studies 28 (1), pp.5-17.
[Available from EBSCOhost.]
- Mavrotas G. and M. McGillivray (eds.) (2009), Development Aid: A Fresh Look, UNU and
Palgrave McMillan, especially chapters 1, 3, 5, and 9.
- Mayer, J. (2009). ‘Policy Space: What, for What, and Where?’ Development Policy Review, 27
(4): 373-395.
[Available from Wiley InterScience]
- Mold, A. (2009) Policy Ownership and Aid Conditionality in the Light of the Financial Crisis: A
Critical Review, OECD Development Centre Studies, Paris.
- Moss T., G. Pettersson and N. van de Walle (2005). ‘An Aid-Institutions Paradox? A Review on
Aid Dependency and State Building in Sub-Saharan Africa’, Mario Einaudi Centre for
International Studies, Working Paper n. 11-05.
[Available from the Mario Einaudi Center for International Studies website.]
30
- Mosse D. (2005) Cultivating Development: An Ethnography of Aid Policy and Practice, London:
Pluto Press.
[Available from SOAS Library.]
- Moyo, D. (2009). Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa.
London: Allen Lane.
- OECD (2005) Paris Declaration on Aid Effectiveness
[Available from the OECD website.]
- Oya, C. (2006). ‘The political economy of development aid as main source of foreign finance
for African countries: loss of policy space and possible alternatives from East Asia’ Paper
presented at the Second Annual Conference of the International Forum on the Comparative
Political Economy of Globalization conference, 1-3 September 2006, Renmin University of
China, Beijing, China.
[Available from the SERUC website.]
- Putzel, J., (1998) ‘The Business of Aid: Transparency and Accountability in European Union
Development Assistance’, Journal of Development Studies, Vol. 34, No. 3, (February).
[Available from EBSCOhost.]
- Radelet S. (2006). A Primer on Foreign Aid Center for Global Development Working paper n.
92 July
[Available from the Center for Global Development website.]
- Reddy S.G. and C. Miniou (2006). ‘Development Aid and Economic Growth: A Positive LongRun Relation’, UN DESA Working paper n. 29, September.
[Available from the UN website.]
- Roodman D. (2009) ‘An Index of Donor Performance’. CDG Working Paper n. 67.
[Available from the Center for Global Development website.]
- Roodman D. (2008). ‘Through the Looking Glass, and What OLS Found There: On Growth,
Foreign Aid, and Reverse Causality’. Working Paper Number 137, Center for Global
Development, Washington DC.
[Available from the Center for Global Development website.]
- Sachs J. (2005). The End of Poverty. Chapters 14-17, pp. 266-346.
[Available from SOAS Library.]
- Shafaeddin S.M. (2006). ‘The Policy Space Question: An Alternative Approach to Trade and
Industrial Policies; Implications for the World Trade System’, Paper presented at the IDEAS and
UNDP conference on Post Liberalisation Constraints on Macroeconomic Policies, held in
Chennai, India, 27-29 January 2006.
[Available from the IDEAS website.]
- Thorbecke E. (2000) ‘The evolution of the development doctrine and the role of foreign aid,
1950-2000’ in Foreign Aid and Development: Lessons Learnt and Directions for the Future,
edited by Finn Tarp. Chapter 1: 17-47.
[Available from SOAS Library.]
- Toye J., P. Mosley and J. Harrigan (1991) Aid and Power. London: Routledge.
[Available from SOAS Library.]
- UNCTAD, (2000) The Least Developed Countries 2000 Report: Aid, Private Capital Flows and
External Debt – The Challenge of Financing Development in the LDCs, New York: United
Nations, pp.171-207.
[Available from the UNCTAD website.]
- UNCTAD (2006), Economic Development in Africa. Doubling Aid: Making the “Big Push” Work.
31
New York and Geneva: UN.
[Available from the UNCTAD website.]
- Van Waeyenberge, Elisa (2009) 'Selectivity at Work: Country Policy and Institutional
Assessments at the World Bank.' European Journal of Development Research, 21 (5). pp. 792810.
[Available from EBSCO]
- Veltmeyer H. and James Petras (2005) ‘Foreign Aid, Neoliberalism and US Imperialism’
chapter 13 in Saad-Filho and D. Johnston (eds.) Neoliberalism: A Critical Reader, pp. 120-126.
[Available from SOAS Library.]
- World Bank (1998) Assessing Aid – What Works, What Doesn't, and Why (Overview)
[Available from the World Bank website.]
- Wuyts M. (1996) ‘Foreign Aid, Structural Adjustment and Public Expenditure Management: The
Mozambican Experience’, Development and Change 27 (4): 717-749.
[Available from SOAS Library.]
On ‘emerging donors’
* Brautigam, D. (2009), The Dragon’s Gift: The real story of China in Africa, Oxford: OUP.
[Available from the SOAS Library.]
- Alden et al. (eds.) (2008) China Returns to Africa: A Rising Power and a Continent Embrace,
London: Hurst.
[Available from the SOAS Library.]
- Kragelund, D. (2008). ‘The Return of Non-DAC Donors to Africa: New Prospects for African
Development?’ Development Policy Review, 26 (5): 555-584.
[Available from the Wiley.]
- Davies M. with H. Edinger, N. Tay and S. Naidu (2008). How China Delivers Development
Assistance to Africa. Report of the Centre for Chinese Studies prepared for the Department for
International Development (DFID), Beijing.
[Available from the Centre for Chinese Studies.]
- Oya C. (2008). ‘Greater Africa-China Economic Cooperation: Will This Widen ‘Policy Space’?’,
Development Viewpoint n. 4, Centre for Development Policy and Research, SOAS, London.
[Available from the SOAS website.]
10
International Trade and Development
14
Dec
Carlos Oya
This topic includes a critical overview of the main strands in trade theory applied to developing
countries, from the comparative advantage models to new trade theories - classical and
neoclassical trade theories and their policy implications. Particular emphasis will be placed on
diverse trade patterns in developing countries, export-import structures, trade in capitalist
transformations and the complex relationship between trade and growth. The lecture will also
focus much on trade liberalization debates, and a reading list is provided for a particular
illustrative Mozambican case study.
32
Core Readings
(online) S. Smith and J. Toye (1979) ‘Three Stories about Trade and Poor Economies’, Journal
of Development Studies, Vol.15, No.3 [Available from EBSCOhost.]
[Also reprinted in: Todaro, M. (ed.) (1983) The Struggle for Economic Development, New York:
Longman.] [Available from SOAS Library.]
(RP) Chang, H.J. (2006), ‘Trade and Industrial Policy’, in D. Clark (ed.) The Elgar Companion to
Development Studies, pp. 633-36, Cheltehnam: Edward Elgar. [Available from SOAS Library.]
(RP) Patnaik U. (2005) ‘Ricardo’s Fallacy: Mutual Benefit from Trade Based on Comparative
Costs and Specialization?’ in Jomo K.S. (ed.) The Pioneers of Development Economics: Great
Economists on Development, ch. 3, London: Zed Books. [Available from SOAS Library.]
(online) Elbadawi, I. (1999), ‘Can Africa Export Manufactured Exports?’ Policy Research
Working Paper 2120, Washington DC: World Bank [Available from the Ideas website]
Essay Question
Examine the process and the economic and social effects of trade liberalization in ONE
developing country.
Recommended Readings
* Owens T. and Wood (1997) ‘Export-Oriented Industrialization Through Primary Processing?’
World Development, 25 (9), pp. 1453-1470.
[Available from ScienceDirect.]
* Deraniyagala S., and Fine, B. (2006) “Kicking Away the Logic: Free Trade is Neither the
Question Nor the Answer for Development” in Jomo K.S. and B. Fine (eds.) The New
Development Economics after the Washington Consensus. London: Zed Books.
[Available from SOAS Library.]
* Rodríguez, Francisco (2006). ‘Openness and Growth: What Have We Learned?’, New York,
background note for the United Nations’ 2006 World Economic and Social Survey.
[Available from the UN website.]
* Panagariya, Arvind (2005), ‘Agricultural Liberalisation and the Least Developed Countries: Six
Fallacies’, The World Economy, 28(9): 1277-1299.
[Available from EBSCO]
* George, C. (2010). The Truth About Trade: The Real Impact of Liberalization, London: Zed
Books.
-* Chang, H.J. (2010). 23 Things They Don’t Tell you About Capitalism, London: Allen Lane.
Thing 1 and 7.
Supplementary Readings
Amsden A. (2007) Escape from Empire: The Developing World’s Journey Through Heaven and
Hell, Cambridge, MA: MIT Press, chapters 3 and 10.
[Available from SOAS Library.]
33
Barrientos S. (2000).’Globalization and Ethical Trade: Assessing the Implications for
Development’, Journal of International Development, 12 (4) 559-70.
[Available from Wiley InterScience.]
Baunsgaard, T. and M. Keen (2005). ‘Tax Revenue and (or?) Trade Liberalization?’, IMF
Working Paper WP/05/112.
Bergsten C. Fred (2001) ‘Fifty Years of Trade Policy: The Policy Lessons’, The World Economy,
24 (1), pp.1-13.
[Available from EBSCOhost.]
Bruton H.J. (1998), ‘A reconsideration of import substitution’. Journal of Economic Literature, 36
(2): 903-936.
[Available from JSTOR.]
Chang H.J. (2005). Why developing Countries Need Tariffs. How WTO NAMA Negotiations
Could Deny Developing Countries’ Right to a Future. OXFAM, South Centre.
[Available from the UNECA website.]
Chang H.J. (2007). Bad Samaritans. Rich Nations, Poor Policies & the Threat to the Developing
World. London: Random House Business Books, especially chapter 3.
[Available from SOAS Library.]
Cuddington, J.T. (1992). ‘Long run trends in 26 primary commodity prices’ Journal of
Development Economics, 39, pp. 207-227.
Deaton, A. (1999). ‘Commodity Prices and Growth in Africa, Journal of Economic Perspectives,
vol. 13, n°3, Summer, pp. 23-40.
[Available from JSTOR.]
Deraniyagala S. (2005) “Neoliberalism in International Trade: Sound Economics or a Question
of Faith?” chapter 10 in Saad-Filho and D. Johnston (eds.) Neoliberalism: A Critical Reader, pp.
99-105.
[Available from SOAS Library.]
Dornbusch R. (1992) ‘The Case for Trade Liberalization in Developing Countries’. Journal of
Economic Perspectives, 6 (1) Winter, pp.69-85.
[Available from JSTOR.]
Dutt A.K. (2005) ‘International Trade in Early Development Economics’ in Jomo K.S. and E.S.
Reinert (ed.) The Origins of Development Economics: How Schools of Economic Thought Have
Addressed Development, London: Zed Books, chapter 6.
[Available from SOAS Library.]
Edwards S. (1993) ‘Openness, Trade Liberalization, and Growth in Developing Countries’.
Journal of Economic Literature, 31, pp.1358-1393.
[Available from JSTOR.]
Gallagher K.P. (ed.) (2006) Putting Development First: The Importance of Policy Space in the
WTO and International Financial Institution. London: Zed Books, especially chapters 1, 5, 6, 11
and 12.
[Available from SOAS Library.]
Gibbon P. and S. Ponte (2005) Trading Down: Africa, Value Chains and the Global Economy,
Philadelphia: Temple University Press.
[Available from SOAS Library.]
34
Goh, C.Y. (2006). ‘Trade Negotiations and Protectionism’ in D. Clark (ed.) The Elgar Companion
to
Development
Studies,
pp.
637-43,
Cheltehnam:
Edward
Elgar.
[Available from SOAS Library.]
Kneller, R. (2007). ‘No miracles here: Trade policy, fiscal policy and economic growth’ Journal of
Development Studies Vol. 43 Issue 7, p1248-1269.
[Available from SOAS Library.]
Krugman P. & M. Obstfeld (2000) International Economics: Theory and Policy, 5th ed, AddisonWesley-Longman, chapter 4 (Hecksher-Ohlin model).
[Available from SOAS Library.]
Lall S., J. Weiss and J. Zhang (2006). ‘The “Sophistication” of Exports: A New Trade Measure’,
World Development, 34 (2): 222-237.
[Available from ScienceDirect.]
Ludema, R.D. (2001). ‘The Return of Dependency Theory: Is Primary Commodity Specialization
Bad for Development?’, International Economic Review, September/October, pp. 17-24.
Morrissett J. (1998) ‘Unfair trade? The Increasing Gap between World and Domestic Prices in
Commodity Markets during the Past 25 Years’. World Bank Economic Review 12 (3): 503-526.
[Available from SOAS Library.]
Myint, Hla, (1958) "The Classical Theory of International Trade and the Underdeveloped
Countries", Economic Journal, Vol. 68, pp. 317-337.
[Available from JSTOR.]
Ocampo, J. and Parra (2003). ‘Returning to an eternal debate: the terms of trade for
commodities in the twentieth century’, CEPAL - SERIE Informes y estudios especiales.
OXFAM
(2002).
Rigged
Rules
[Available from the SOAS library]
and
Double
Standards.
Oxford:
OXFAM.
Pritchett L. (1996) ‘Measuring Outward Orientation in LDCs: Can it be Done?’ Journal of
Development
Economics,
Vol.49,
pp.307-335.
[Available from ScienceDirect.]
Rodriguez, F. and Dani Rodrik, (2000). “Trade Policy and Economic Growth: A Skeptic’s Guide
to the Cross-National Evidence,” in B. Bernanke and K. Rogoff, NBER Macroeconomics Annual
2000, Cambridge, MA, MIT Press.
[Available from EBSCOhost.]
Shaikh A. (2005) “The Economic Mythology of Neoliberalism” chapter 4 in Saad-Filho and D.
Johnston (eds.) Neoliberalism: A Critical Reader, pp. 41-49.
[Available from SOAS Library.]
Singh, Ajit (1995), ‘North-South Trade, Employment and Inequality: Changing Fortunes in a
Skill- Driven World’. (Review article of Adrian Wood book cited below). The Economic Journal,
Vol. 105, No. 432. (Sep., 1995), pp. 1287-1289.
[Available from JSTOR.]
Stiglitz J. and A. Charlton (2005) Fair Trade For All. How Trade Can Promote Development,
Oxford: Oxford University Press.
[Available from SOAS Library.]
Svedberg P. (1991). ‘The Export Performance of Sub-Saharan Africa’, Economic Development
and Cultural Change, 39, 3, pp. 549-566.
35
[Available from EBSCOhost.]
UNCTAD (2003). Economic Development in Africa. Trade Performance and Commodity
Dependence, Geneva, UNCTAD.
[Available from the UNCTAD website.]
UNCTAD (2004) Least Developed Countries Report 2004: Linking International Trade with
Poverty Reduction, Geneva, UNCTAD.
[Available from the UNCTAD website.]
Wood, Adrian (1994). North-South Trade, Employment and Inequality: Changing Fortunes in a
Skill-Driven World, Oxford: Clarendon Press.
[Available from SOAS Library.]
World Bank (2002) Development, Trade and the WTO: A Handbook. Washington DC.
[Available from SOAS Library.]
Yeats A.J. (1990), ‘On the accuracy of economic observations: do Sub-Saharan trade statistics
mean anything?’ World Bank Economic Review, 4 (2), pp. 135-156.
[Available from Oxford Journals online.]
For basic concepts and theoretical framework visit the Bized website.
Mozambican Case Study Readings
Hanlon J. (2000), ‘Power Without Responsibility: The World Bank and Mozambican Cashew
Nuts.’ Review of African Political Economy, March: pp.29-45.
[Available from InformaWorld.]
Paulo Mole and Michael T. Weber (1999). “The Cashew Debate in Mozambique: Are There
Alternative Strategies?” Michigan State University & The Ministry of Agriculture and Rural
Development, Mozambique. Flash April 14, 1999.
[Available from the Michigan State University website.]
Cramer C. (1999). “Can Africa Industrialize by Processing Primary Commodities: The Case of
Mozambican Cashew Nuts.” World Development Vol.27, No.7
[Available from ScienceDirect.]
McMillan, Margaret, Dani Rodrik and Karen Horn Welch (2002), “When Economic Reform Goes
Wrong: Cashews in Mozambique”
[Available from the Harvard website.]
36