Development Economics: GS F 234

Schools of
Development Economic
Economics: Thought to
Introductory Deliver Economic
Development
Lecture

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 1. What Constitutes
Development

2. Idea of
Economic
Introduction Development Schools of
to Thought
Development
Economics: 3. Models of Economic
Development

4. Challenges
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Setting the Agenda

State of The World : A Cursory Look

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World Map

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World Population Distribution

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World GDP Distribution Profile
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Global Child Mortality Rate
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World Health Care Expenditure
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World HIV Concentration
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World Energy Consumption Profile
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 Very
Low
High
High
Data World map of Human Development Index
unavailable
Medium Asymmetry & How do we handle this!
Good old lessons in Strategy
from an age-old fable

The Tortoise
And
The Rabbit
Once upon a time a tortoise and a
Rabbit had an argument about
who was faster.
That’s not true.
The fastest runner is
me!

I’m the fastest

runner.
 The Story of
Asymmetric
They decided to settle
Competition/
the argument with a
Notion of TOT
race. They agreed on a
route and started off the Fine! Trade
Agreements
race. between
the rich &
poor
countries
Ok, let’s have
a race.
The Rabbit shot ahead and ran briskly for some time.
Then seeing that he was far ahead of the tortoise, he
thought he'd sit under a tree for some time and relax
before continuing the race.
He sat under the tree and soon fell
asleep.

The case of
resource
mismanagement

Cases?
Venezuela;
LACs
The tortoise plodding on overtook
him and soon finished the race,
emerging as the undisputed
champ.
The Rabbit woke up and realized
that he'd lost the race.
The moral of the story is that
slow and steady wins the race.

This is the version of the

story that we've all grown
up with.
The story continues …
The Rabbit was
disappointed at losing the
race and he did some soul-
searching. He realized that
Why did I
he'd lost the race only lose the
because he had been race?

overconfident, careless
and lax. If he had not taken
things for granted, there's
no way the tortoise could
have beaten him.
So he challenged the
tortoise to another race.
The tortoise agreed. Ok.

Can we have
another race?
This time, the Rabbit went all
out and ran without stopping
from start to finish. He won
by several miles. Adam Smith

Absolute
Advantage
Model

Cases
The moral of the story?

Fast and consistent will always beat the slow and

steady.

However, it's better to be fast and

reliable.
But the story doesn't end here …
The tortoise did some thinking
this time, and realized that
there's no way he can beat the
Rabbit in a race the way it was
currently formatted. How can I
win the
Rabbit?

Structural
Challenges to
Growth ?
He thought for a while,
and then challenged
the Rabbit to another Can we have another race?
This time we’ll go through a
race, but on a slightly different route.
different route.
The hare agreed.

Sure!
They started off. In keeping with his self-
made commitment to be consistently fast,
the Rabbit took off and ran at top speed
until he came to a broad river. The
finishing line was a couple of kilometers
on the other side of the river. Goal
 Comparative
Advantage Model

David Ricardo
The moral of the story?

First identify your core competency and then

change the playing field to suit your core
competency. – Comparative Advantage Model
or ASEAN Model

Working to your strengths will not only get you

noticed, but will also create opportunities for
growth and advancement.
The story still hasn't ended …
The Rabbit and the tortoise, by
this time, had become pretty
good friends and they did some
thinking together. Both realized
that the last race could have
been run much better.
So they decided to do the
last race again, but to run
as a team this time.
Great! I think we could
do it much better, if we
two help each other.

Hi,
Hi, buddy.
buddy.How
How
about
aboutdoing
doingour
ourlast
last
race
raceagain?
again?
They started off, and this time the
Rabbit carried the tortoise till the
riverbank.
There, the tortoise took over and
swam across with the Rabbit on
his back.
On the opposite bank, the Rabbit HO Theory
again carried the tortoise and or Factor
they reached the finishing line Endowment
together. They both felt a greater Model
sense of satisfaction than they'd
felt earlier.
The moral of the story?
What Development
Economics  Idea & Strategy;
proposes to Offer is  Right Strategy;
a series of Ideas;  Road Map;
Strategies to create
 & Of course Action
a condition of
Economic Plan
Development.
Obstacles to Development
Thank You

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