University of Chicago
Graduate School of Business
33511 The Politics of Interdependent Economies
Professor Marvin Zonis
marvin.zonis@gsb.uchicago.edu
Materials to purchase:
1. Reading Packet
2. Capitalism and Freedom, Milton Friedman
3. The Great Transformation, Karl Polanyi
WEEK 1. Introduction
1. Global Trends 2015: A Dialogue About the Future with Nongovernment Experts
(ONLINE).
http://www.cia.gov/cia/publications/globaltrends2015/index.html
WEEK 2. Development and Its Consequences
Required Reading
1. Human Development Indicators (ONLINE).
See Professor Zonis’s Faculty Web Page to access this report.
2. “Revisiting the Challenge of Development” by Vinod Thomas in Frontiers of
Development Economics, pp. 149-182 (HANDOUT).
Suggested Reading
3. Modernization and Postmodernization: Cultural, Economic, and Political Change in 43
Societies (Chapter 1 in part, pp. 22-50) by Ronald Inglehart (PACKET).
4. “Fifty Years of Development” Paul Collier, David Dollar, and Nicholas Stern.
(ONLINE) See Professor Zonis’s Faculty Web Page to access this article.
WEEK 3. Development, Inequality, and Poverty
Required Reading
1. “Death Of A Continent: Africa will never be the same. AIDS is killing
its best and brightest, leaving a generation of orphans behind.” by
Brian O’Reilly, Fortune, November 13, 2000 (ONLINE).
http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=00000189
2. “Increasing Gap Between Rich and Poor” by Martin Dickson
Financial Times, FT.com (ONLINE).
http://specials.ft.com/worldeconomy2000/FT31MFCQBDC.html
3. “Growth, Inequality, and Poverty” (Chapter 3) in World Development Report, 20002001, published for the World Bank. Oxford University Press (PACKET).
4. Review the World Income Inequality Database (ONLINE).
http://www.undp.org/poverty/initiatives/wider/wiid.htm
Suggested Reading
5. “How did the World’s Poorest Fare in the 1990s?” by Shaohua Chen and Martin
Ravallion, World Bank (ONLINE).
http://econ.worldbank.org/docs/1164.pdf#xml=http://econ.worldbank.org/cgibin/texis/webinator/econsearch/xml.txt?query=bourguignon&db=db.econ&id=bbe8d1a03
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WEEK 4. Development and Democracy
Required Reading
1. Capitalism and Freedom (Introduction and Chapters 1, 12, and 13) by Milton Friedman
(BOOK).
2. Development as Freedom (Introduction and Chapters 1-2) by Amartya Sen
(PACKET).
3. Sustainable Democracy (Chapter 4) by Adam Przeworski (PACKET).
Suggested Reading
4. The Limits of Liberty (Chapter 2) by James M. Buchanan (PACKET).
WEEK 5. Culture and Development
1. “Culture Matters” by Lawrence E. Harrison, The National Interest, No. 60, Summer
2000 (PACKET).
2. “Culture Makes Almost All the Difference” by David Landes in Culture Matters: How
Values Shape Human Progress, L. Harrison and S. Huntington, eds. (PACKET).
3. “Asian Values: From Dynamos to Dominoes?” by Lucian W. Pye in Culture Matters:
How Values Shape Human Progress, L. Harrison and S. Huntington, eds. (PACKET).
4. “The Social Contradictions of Japanese Capitalism,” by Murray Sayle The Atlantic
Monthly, June 1998. Read both Parts 1 and 2. (ONLINE).
http://www.theatlantic.com/issues/98jun/japancap.htm
WEEK 6. Corruption, Crime, and Rent-Seeking
Required Reading
1. “Corruption, Public Investment and Growth” by Vito Tanzi and Hamid Davoodi, IMF
Working Paper, October 1997 (ONLINE).
http://www.imf.org/external/pubs/ft/wp/wp97139.pdf
2. “Corruption and Economic Development: Beneficial Grease, Minor Annoyance, or
Major Obstacle by Shang-Jin Wei, Harvard University and the National Bureau of
Economic Research (ONLINE).
http://econ.worldbank.org/docs/463.pdf
3. “High-level Rent Seeking and Corruption in African Regimes” by Jacqueline Coolidge
(World Bank) and Susan Rose-Ackerman (Yale University). Review the case studies
beginning on page 26 of this article (ONLINE).
http://econ.worldbank.org/docs/528.pdf
4. Review the 2001 Corruption Index at the following web site:
http://www.GWDG.DE/~uwvw/
Suggested Reading
5. “Economic Causes of Civil Conflict and Their Implications for Policy” by Paul
Collier. World Bank, June 15, 2000 (ONLINE). See Professor Zonis’s Faculty Web Page
to access this article.
6. “Greed and Grievance in Civil War” by Paul Collier and Anke Hoeffler, World Bank,
January 4, 2001 (ONLINE).
http://www.worldbank.org/research/conflict/papers/qjejanuary4ver2.pdf
WEEK 7. Institutions and Development
1. The Great Transformation (Chapters 11-18) by Karl Polanyi (BOOK).
2. Institutions, Institutional Change and Economic Performance (Chapters 5-7 and 12) by
Douglass C. North (PACKET).
3. “What Russia Teaches Us Now: How Weak States Threaten Freedom” by Stephen
Holmes in The American Prospect, July-August 1997 (PACKET).
WEEK 8. Impediments to Development
1. The Mystery of Capitalism (Chapters 1-2) by Hernando deSoto (PACKET); and “The
Mystery of Capital” by Hernando deSoto in Finance and Development, March 2001
(ONLINE).
http://www.imf.org/external/pubs/ft/fandd/2001/03/desoto.htm
2. “The Regulation of Entry” by Djankov, La Porta, Lopez-de-Selanes, and Shleifer,
Working Paper 7892, National Bureau of Economic Research (ONLINE). See Professor
Zonis’s Faculty Web Page to access this article.
3. “Why Don’t Poor Countries Catch Up? A Cross-National Test of an Institutional
Explanation” by Philip Keefer and Stephen Knack, Economic Inquiry, July 1997
(PACKET).
WEEK 9. Building a Legal Framework and the Challenges of Policymaking
Required Reading
1. “Creating a Legal Framework for Economic Development” by Richard Posner in The
World Bank Research Observer, February 1998 (PACKET).
2. “Chains of Command” by Michael Ignatieff Review of Waging Modern War: Bosnia,
Kosovo, and the Future of Combat by Wesley K. Clark, New York Review of Books,
June 19, 2001 (ONLINE).
http://www.nybooks.com/articles/14348
3. “The European Orchestra” by Timothy Garton Ash New York Review of Books May
17, 2001 (ONLINE).
http://www.nybooks.com/articles/14237
Suggested Reading
4. The Limits of Liberty (Chapters 6 and 7) by James M. Buchanan (PACKET).
WEEK 10. Globalization and Development
Required Reading
1. “Is Today’s Globalization Different Than What has Gone Before?” by Martin Wolf.
See Professor Zonis’s Faculty Web Page to access this article.
2. “Globalization and the Challenge for Developing Countries” by Shahid Yusuf, World
Bank, June 2001 (ONLINE).
http://econ.worldbank.org/files/2210_wps2618.pdf
3. “Labor’s New Internationalism,” by Jay Mazur, Foreign Affairs, Jan-Feb. 2000
(PACKET).
Suggested Reading
4. “Globalization and Inequality: Historical Trends” by Kevin H. O’Rourke, Trinity
College Dublin, April 2001 (ONLINE).
http://econ.worldbank.org/files/1727_ORourke.pdf
5. “Trade, Growth, and Poverty” by David Dollar and Aart Kraay, World Bank, June
2001 (ONLINE).
http://econ.worldbank.org/files/2207_wps2615.pdf