Fatima Jinnah Women University

Department of Economics
Masters of Economics
M. Econ III
2018-2021
Instructor: Johar-i-Nayyara Instructor Email: jnayyara@fjwu.edu.pk
Course Title: Development Theory Course Code: ECO -149
Credit Hours: 51 Status: core
Semester/Session: M. Econ III Google Class Code: cly446d
Whats app: 03324828338
Course Delivery Mode: F2F

Prerequisite: Macroeconomics 1

Course Description:
This course is a general overview of issues confronting developing nations. Models of
economic growth and structural transformation are introduced. The role of the market
versus the state is explored in the context of economic reform and liberalization. The
impact of globalization on developing (emerging) economies is scrutinized. The course
contents are a valid spectrum oscillating between belief and disbelief regarding the
generalization of theories and patterns of development.

Course Objectives:
This course aims to acquaint students with
 Theoretical building blocks that are needed for understanding of concept of economic
development at both at Macro and Micro level.
 Critical evaluation of the vulnerabilities and weaknesses of developing economies and
strengths of developed economies.
Learning Outcomes:
On completion of this course, students will be able to
LO1: Understand the concept of economic development.
LO2: Learn the important models and theories in economic development and their policy
implications.
LO3: Acquire a basic understanding of the issues and ongoing debates in development
economics.

Semester Module Contents Objectives & Activity Resources Assignm

Week Expectations ent/
of Module Quiz/Cla
ss
Activity
1 Understanding  What is Class room Todaro, M. P., &
Development Economic To enable the Lectures/ Smith, S. C. (2012).
Developme students to Class Economic
development 11th
 nt understand Discussion edition.
 Developme the concept s
Chapter 1
nt ,origin and
Economics evolution of
origins & development
evolution
2&3 Structural  Low-level To inculcate Class room Todaro, M. P., &
Theories of Equilibriu the basic Lectures/ Smith, S. C. (2012).
Economic m Trap, understanding Class Economic
Development  Rosenstein’ of structural Discussion development 11th
edition.
s Big Push, issues of s
 Critical developing Chapter 2 & 4
Minimum countries in
Effort, theoretical
 Balanced framework
Vs
Unbalance
d Growth ,
 Two Sector
Model,
Two Gap
Model
(Trade,
 FDI &
Foreign
Aid),
 Three Gap
model
4 Rostow’s Stage To enable the Class room Rostow, W. W. Quiz 1
(1959). The stages
of Growth  Traditional students to Lectures/
of economic
Society identify and Class growth. The
 Pre- distinguish Discussion economic history
conditions between s review, 12(1), 1-16.
for take-off various stages Nath, S. K. (1962).
 Take-off, of economic
 Drive to growth
Maturity
 Age of
High Mass
Consumpti
on
5&6 Radical  Center- To enable the Class room Todaro, M. P., & Assignm
Theories of Periphery students to Lectures/ Smith, S. C. (2012). ent 1:
Development Paradigm, explore the Class Economic Elaborate
 Wallerstein issue of Discussion development 11th the
 ’s World unevenness in s edition. phenome
Systems economic non of
Chapter 3
Theory development. natural
 Structural resource
Dependenc with the
y Theory help of
 Griffin- examples
Enos . Also
Hypothesis elaborate
 Neocolonia its
l implicati
Dependenc ons for
y economic
 False developm
Paradigm ent of a
 Dualistic country.
Developme
nt Thesis
7&8 Revival of Neo-  1982 Debt To analyze Class room Todaro, M. P., &
classical Crisis, the role of Lectures/ Smith, S. C. (2012).
Theories  Washingto international Class Economic
n intuitions in Discussion development 11th
edition.
Consensus uplift of s
 Criticizing developing Chapter 3
the Role of countries.
Governmen
t
 Deregulatio
n &
Privatizatio
n
 The Role
of IMF &
World
Bank:
 Structural
Adjustment
Program
Midterm
9 & 10 Issues in  Origins of To enable the Class room  Anand, S.,
Human the students to Lectures/ & Sen, A.
Development Humanist understand Class (1994).
Approach the concept of Discussion Human
human s Developme
 Core nt Index:
Values of development Methodolo
in detail.
 Developme gy and
nt, Measurem
 Sen’s ent.
Functionin  Alkire, S.
g & (2005). Val
Capabilitie uing
s Approach freedoms:
Sen's
 Human capability
Developme approach
nt Index: and
Constructio poverty
n & reduction.
Oxford
Compariso University
ns Press on
 Martha Demand.
Nussbaum’ Nussbaum,
M. (2003).
s List of
Entitlement  Capabilities
s as
fundament
al
entitlement
s: Sen and
social
justice. Fe
minist
economics, 
9(2-3), 33-
59.
11 & 12 Economic  Functional Class room Todaro, M. P., &
Inequality and Lectures/ Smith, S. C. (2012).
Personal Class Economic
Distributio Discussion development 11th
edition.
n of s
Income Chapter 6
 Measuring
Economic
Inequality
 Inequality
& Growth:
The
Inverted-U
Hypothesis
,
 Inclusive
Growth,
 Effects of
 Inequality
13 Poverty  Absolute To explore the Class room Todaro, M. P., & Quiz 2
Vs Relative concept, Lectures/ Smith, S. C. (2012).
Poverty measurement Class Economic
 Causes of and Discussion development 11th
edition.
Poverty implications s
 Measuring of poverty. Chapter 6
Poverty
 Poverty &
Institution:
Inter-
linkage
 Pro-poor
Growth
14 Health &  Formal & To explore the Class room Todaro, M. P., &
Assignme
Education Informal role of Lectures/ Smith, S. C. (2012). nt 2:
Education education and Class Economic Explain
health system Discussion development 11th the
 Sheepskin
edition. phenomen
Effect in economic s
on of off
 Human development. Chapter 9
shore out
Capital sourcing.
Theory Also
 Public Vs explain its
Private pros and
Provision cons for
of the host
country?
Education
&
Healthcare
15 Institutions  What are Class room North, D. C. (1991).
To enable the Lectures/ Institutions. Journal
institutions
of economic
? students to Class perspectives, 5(1),
 Why define Discussion 97-112.
institutions institutions s
emerge? and analyze
 What are its
the implications
implication for economic
s of development.
institutiona
l
persistence

16 Development  Sources of Class room Sagasti, F.,

financing To explore the Lectures/ Bezanson, K., &
developme
Prada, F.
 nt sources of Class (2005). The future
finance(for financing Discussion of development
financing. New
eign and economic s York: Pelgrave-
domestic, development. Macmillan.
public &
private)

Teaching Methodology
• Classroom Lectures, Class Discussions

Assessment Methods
 Summative Assessment: Midterm evaluations and Final exams
 Formative Assessment: Assignments, Quizzes, Class activity

Alignment of ILOs with Assessment

Outcome & Learning Grid

S. No Intended Learning Assessment
Outcomes(ILOs) (Formative and Summative)
1. Assignment 1,Quiz 1,
LO1. Understand the concept of
economic development.

2. LO2. Learn the important models Quiz 1,Quiz 2, Midterm , Final Term
and theories in economic
development and their policy
implications.
3. LO3. Acquire a basic Assignment 1, Assignment 2, Quiz 2 , Final
understanding of the issues and Term
ongoing debates in development
economics.

Rubric for Assessment

*Attach the rubric that will be used for evaluation of different assignments

Evaluation Criteria
Sr. No. Assessment Evaluation Break-up Marks/Percentage
1 Formative Assignments 20 %
2 Quiz 15 %
4 Class Participation 5%
5 Summative Mid course evaluation 20 %
6 Final evaluation 40 %
Total 100
Apart from mid and final evaluation marks/percentage will be as per requirement of the
course

Recommended Readings: (Latest available editions)

 Anand, S., & Sen, A. (1994). Human Development Index: Methodology and
Measurement.
 Alkire, S. (2005). Valuing freedoms: Sen's capability approach and poverty reduction.
Oxford University Press on Demand. Nussbaum, M. (2003).
 Capabilities as fundamental entitlements: Sen and social justice. Feminist
economics, 9(2-3), 33-59.
 Ghatak, S. (2003). Introduction to development economics. Psychology Press.
 Kakwani, N., & Pernia, E. M. (2000). What is pro-poor growth?. Asian development
review, 18(1), 1-16.
 Nelson, R. R. (1956). A theory of the low-level equilibrium trap in underdeveloped
economies. The American Economic Review, 46(5), 894-908.
 Nath, S. K. (1962). The theory of balanced growth. Oxford Economic Papers, 14(2), 138-
153.
 North, D. C. (1991). Institutions. Journal of economic perspectives, 5(1), 97-112.
 Rostow, W. W. (1959). The stages of economic growth. The economic history
review, 12(1), 1-16. Nath, S. K. (1962).
 Rimmer, D. (1979). Some origins of development economics. The IDS Bulletin, 10(4), 33-
37.
 Sagasti, F., Bezanson, K., & Prada, F. (2005). The future of development financing. New
York: Pelgrave-Macmillan.
 Stanton, E. A. (2007). The human development index: A history. PERI Working Papers,
85.
 Todaro, M. P., & Smith, S. C. (2012). Economic development 11th edition.

Course Instructions for Students

It is expected that the students will

• Register them on Google Classroom
• Come prepared to class for meaningful discussion.
• Complete their assignments on due dates.

General Instructions:

• Attendance: A minimum of 75% attendance is required for successful completion of

course.
• Plagiarism: Strict action may be taken against any student found guilty of submitting
copied content without proper referencing.
 • On-Time Submission: Students are instructed to strictly follow submission deadlines
as communicated by the Instructor.
• Student Technical Support: If students have difficulty in accessing Google
Classroom, they may contact the instructor through email or class whatsapp group.
• Class Whats app group with the title of the course will be created prior to
commencement of class.