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 W. W. Norton & Company has been independent since
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Library of Congress Cataloging-in-Publication Data

Economics of development / Dwight H . Perkins . . . [et al.].—7th ed.
p. cm.
Rev. ed. of: Economics of development / Dwight H. Perkins, Steven Radelet, David L. Lindauer.
6th ed. c2006.
Includes bibliographical references and index.
ISBN 978-0-393-93435-9 (hardcover)—ISBN 0-393-93435-7 1. Developing countries—Economic
policy. 2. Economic development. I. Perkins, Dwight H. (Dwight Heald), 1934- II. Perkins,
Dwight H. (Dwight Heald), 1934- Economics of development.
HC59.7.E314 2013
338.9—dc23
2012029688

W. W. Norton & Company, Inc., 500 Fifth Avenue, New York, NY 10110-0017
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W. W. Norton & Company Ltd., Castle House, 75/76 Wells Street, London W1T 3QT

1 2 3 4 5 6 7 8 9 0
 Brief Contents

P A R T O N E Development and Growth

1 Patterns of Development 3
2 Measuring Economic Growth and Development 23
3 Economic Growth: Concepts and Patterns 55
4 Theories of Economic Growth 89
5 States and Markets 129

P A R T T W O Distribution and Human Resources

6 Inequality and Poverty 165
7 Population 217
8 Education 257
9 Health 299

P A R T T H R E E Macroeconomic Policies for Development

10 Investment and Savings 349
11 Fiscal Policy 391
12 Financial Development and Inflation 421
13 Foreign Debt and Financial Crises 455
14 Foreign Aid 499
15 Managing Short-Run Crises in an Open Economy 545

P A R T F O U R Agriculture, Trade, and Sustainability

16 Agriculture and Development 583
17 Agricultural Development: Technology,
Policies and Institutions 619
18 Trade and Development 665
19 Trade Policy 709
20 Sustainable Development 757

v
 Contents
Preface xv
International Development Resources on the Internet xxiii

PART ONE
Development and Growth

1 Patterns of Development 3
Three Vignettes  | Malaysia  | Ethiopia  | Ukraine  | Development
and Globalization  | Rich and Poor Countries  | Growth and
Development  | Diversity in Development Achievements  | Approaches
to Development  | The Study of Development Economics  |
Organization  | Summary 

2 Measuring Economic Growth and Development 23

Measuring Economic Growth  | Measuring GDP: What Is Left Out?  | Exchange-
Rate Conversion Problems  | Economic Growth around the World: A Brief
Overview  | jared diamond: guns, germs, and steel  | Economic Growth,
1970–2010  | What Do We Mean by Economic Development?  | Measuring
Economic Development  | human development defined  | why use
logarithms?  | What Can We Learn from the Human Development
Index?  | Millennium Development Goals  | targets of the millennium
development goals  | Is Economic Growth Desirable?  | Summary 

3 Economic Growth: Concepts and Patterns 55

Divergent Patterns of Economic Growth since 1960  | botswana’s
remarkable economic development  | Factor Accumulation, Productivity,
and Economic Growth  | calculating future values, growth rates, and
doubling times  | Saving, Investment, and Capital Accumulation  |
Sources of Growth Analysis  | Characteristics of Rapidly Growing
Countries  | 1. Macroeconomic and Political Stability  | 2. Investment
in Health and Education  | 3. Effective Governance and Institutions  |

vii
viii CONTENTS

institutions, governance, and growth  | 4. Favorable Environment

for Private Enterprise  | 5. Trade, Openness, and Growth  | 6. Favorable
Geography  | Summary 

4 Theories of Economic Growth 89

The Basic Growth Model  | The Harrod-Domar Growth Model  | The
Fixed-Coefficient Production Function  | The Capital–Output Ratio and the
Harrod-Domar Framework  | Strengths and Weaknesses of the Harrod-Domar
Framework  | economic growth in thailand  | The Solow (Neoclassical)
Growth Model  | The Neoclassical Production Function  | The Basic
Equations of the Solow Model  | The Solow Diagram  | Changes in the
Saving Rate and Population Growth Rate in the Solow Model  | population
growth and economic growth  | Technological Change in the Solow
Model  | Strengths and Weaknesses of the Solow Framework  | Diminishing
Returns and the Production Function  | explaining differences in growth
rates  | The Convergence Debate  | Beyond Solow: New Approaches to
Growth  | Summary 

5 States and Markets 129

Development Thinking after World War II  | market failure  | Fundamental
Changes in the 1970s and 1980s  | ghana after independence  | the
declining effectiveness of government intervention in the market:
korea, s–  | Structural Adjustment, the Washington Consensus,
and the End of the Soviet Model  | Soviet Command Model to Market
Economies: The Great Transition  | Was the Washington Consensus a Success or
Failure?  | Summary 

P ART TW O
Distribution and Human Resources

6 Inequality and Poverty 165

Measuring Inequality  | Patterns of Inequality  | Growth and
Inequality  | What Else Might Cause Inequality?  | Why Inequality
Matters  | Measuring Poverty  | Poverty Lines  | national poverty
lines in bangladesh, mexico, and the united states  | Why $1.25 a
Day?  | Dissenting Opinions on the Extent of Absolute Poverty  | who
is NOT poor?  | Poverty Today  | Who Are the Poor?  | Living in
Poverty  | Strategies to Reduce Poverty  | Growth is Good for the
Poor  | Sometimes Growth May Not Be Enough  | Pro-Poor Growth  |
 CONTENTS ix

why should development strategies have a poverty focus?  | Improving

Opportunities for the Poor  | Income Transfers and Safety Nets  | Global
Inequality and the End of Poverty  | Summary 

7 Population 217
A Brief History of World Population  | The Demographic Transition  | The
Demographic Situation Today  | total fertility rates  | The Demographic
Future  | population momentum  | The Causes of Population Growth  |
Thomas Malthus, Population Pessimist  | Why Birth Rates Decline  |
Population Growth and Economic Development  | Population and
Accumulation  | population growth, age structure, and dependency
ratios  | Population and Productivity  | Population and Market Failures  |
Population Policy  | Family Planning  | Authoritarian Approaches  |
missing girls, missing women  | Population Issues for the Twenty-First
Century  | Summary 

8 Education 257
Trends and Patterns  | Stocks and Flows  | Boys versus Girls  | Schooling
versus Education  | Education as an Investment  | The Rate of Return
to Schooling  | Estimated Rates of Return  | First-Generation Estimates  |
estimating rates of return from wage equations  | Second-Generation
Estimates  | Puzzles  | returns to schooling and income opportunities  |
Making Schooling More Productive  | Underinvestment  | Misallocation  |
Improving Schools  | Reducing the Costs of Going to School  | mexico’s
progresa  | Inefficient Use of Resources  | It Is about More than the
Money  | combating TEACHER absence  | Summary 

9 Health 299
What Is Health?  | life expectancy  | Transitions in Global Health  | The
Epidemiologic Transition  | The Determinants of Improved Health  | Health,
Income, and Growth  | Income and Health  | how beneficent is the
market? a look at the modern history of mortality  | Health and
Productivity  | Health and Investment  | Three Critical Diseases  |
malaria, yellow fever, and the panama canal  | HIV/AIDS  |
hiv/aids, malaria, and tuberculosis: some basics  | Malaria  | making
markets for vaccines  | Tuberculosis  | What Works? Some Successes
in Global Health  | Preventing HIV/AIDS in Thailand  | Controlling
Tuberculosis in China  | Eradicating Smallpox  | Eliminating Polio in
Latin America  | Preventing Deaths from Diarrheal Disease  | Lessons
Learned  | Health Challenges  | Summary 
x CONTENTS

P ART THRE E
Macroeconomic Policies for Development

10 Investment and Savings 349

Using Investment Productively: Cost-Benefit Analysis  | Present Value  |
Opportunity Costs  | Shadow Prices  | Welfare Weights  | Barriers to
Productive Public and Private Investment  | Barriers to Doing Business  |
Foreign Direct Investment  | FDI Patterns and Products  | Benefits and
Drawbacks of FDI  | FDI and Growth  | Policies Toward Foreign Direct
Investment  | Savings  | Household Saving and Consumption  | Corporate
Saving  | Government Saving  | Foreign Saving  | Summary 

11 Fiscal Policy 391

Government Expenditures  | Categories of Government Expenditures  | reining
in fiscal decentralization in brazil and china  | Government Revenue and
Taxes  | tax rates and smuggling: colombia  | Taxes on International
Trade  | Sales and Excise Taxes  | Personal and Corporate Income Taxes  |
New Sources of Tax Revenues  | Changes in Tax Administration  | Fundamental
Tax Reform  | tax administration in india and bolivia in the s  |
indonesian tax reform  | Taxes and Income Distribution  | Personal
Income Taxes  | Taxes on Luxury Consumption  | Corporate Income
and Property Taxes: The Incidence Problem  | Economic Efficiency and the
Budget  | Sources of Inefficiency  | Neutrality and Efficiency: Lessons from
Experience  | Summary 

12 Financial Development and Inflation 421

The Functions of a Financial System  | Money and the Money Supply  |
Financial Intermediation  | Transformation and Distribution of Risk  |
Stabilization  | Inflation  | Inflation Episodes  | hyperinflation
in peru, –  | Monetary Policy and Price Stability  | Monetary
Policy and Exchange-Rate Regimes  | Sources of Inflation  | Controlling
Inflation through Monetary Policy  | Reserve Requirements  | Credit
Ceilings  | Interest-Rate Regulation and Moral Suasion  | International
Debt and Combating Recessions  | Financial Development  | Shallow
Finance and Deep Finance  | Shallow Financial Strategy  | Deep Financial
Strategy  | Informal Credit Markets and Micro Credit  | does micro credit
reduce poverty?  | Summary 
 CONTENTS xi

13 Foreign Debt and Financial Crises 455

Advantages and Disadvantages of Foreign Borrowing  | Debt
Sustainability  | Debt Indicators  | From Distress to Default  | a short
history of sovereign lending default  | The 1980s Debt Crisis  | Causes
of the Crisis  | Impact on the Borrowers  | Escape from the Crisis, for
Some Countries  | The Debt Crisis in Low-Income Countries  | Debt
Reduction in Low-Income Countries  | The Heavily Indebted Poor Country
Initiative  | odious debt  | debt relief in uganda  | Emerging
Market Financial Crises  | Domestic Economic Weaknesses  | Short-Term
Capital Flows  | Creditor Panic  | model of self-fulfilling creditor
panics  | Stopping Panics  | Lessons from the Crises  | Summary 

14 Foreign Aid 499

Donors and Recipients  | What Is Foreign Aid?  | Who Gives Aid?  | the
marshall plan  | the commitment to development index  | Who
Receives Foreign Aid?  | The Motivations for Aid  | china’s foreign
aid  | Aid, Growth, and Development  | View 1. Although Not Always
Successful, on Average, Aid Has a Positive Impact on Economic Growth
and Development  | controlling river blindness in sub-saharan
africa  | View 2. Aid Has Little or No Effect on Growth and Actually May
Undermine Growth  | food aid and food production  | View 3. Aid
Has a Conditional Relationship with Growth, Stimulating Growth Only Under
Certain Circumstances, Such as in Countries with Good Policies or
Institutions  | Donor Relationships with Recipient Countries  | The
Principal-Agent Problem  | Conditionality  | Improving Aid
Effectiveness  | Summary 

15 Managing Short-Run Crises in an Open Economy 545

Equilibrium in a Small, Open Economy  | Internal and External Balance  | real
versus nominal exchange rates  | The Phase Diagram  | Equilibrium and
Disequilibrium  | pioneering stabilization: chile, –  | Stabilization
Policies  | Applications of the Australian Model  | Dutch Disease  |
recovering from mismanagement: ghana, –  | Debt Repayment
Crisis  | Stabilization Package: Inflation and a Deficit  | the greek debt crisis
of –  | Drought, Hurricanes, and Earthquakes  | Summary  |
Appendix to Chapter 15: National Income and the Balance of Payments 
xii CONTENTS

P ART FOUR
Agriculture, Trade, and Sustainability

16 Agriculture and Development 583

Unique Characteristics of the Agricultural Sector  | Structural
Transformation  | Two-Sector Models of Development  | The Labor
Surplus Model  | surplus labor in china  | The Neoclassical Two-Sector
Model  | debates over surplus labor  | Evolving Perspectives on the Role
of Agriculture in Economic Growth and Poverty Alleviation  | Agriculture and
Economic Growth  | the nutrition linkage to economic growth  |
Agriculture and Poverty Alleviation  | Agricultural Growth as a Pathway out of
Poverty  | Summary 

17 Agricultural Development: Technology, Policies,

and Institutions 619
Characteristics of Traditional Agriculture and Agricultural Systems  |
Agricultural Systems  | Diagnosing the Constraints to Agricultural Development  |
Raising the Technical Ceiling  | The Green Revolution  | Recent Trends in
Agricultural Productivity  | a model of induced technical change in
agriculture  | Raising the Economic Ceiling  | Food Production
Analysis  | What to Produce? The Product–Product Decision  | How to Produce
It? The Factor–Factor Decision  | How Much to Produce? The Factor–Product
Decision  | fertilizer subsidies in malawi  | Market Access  | cell
phones and agricultural development  | Institutions for Agricultural
Development  | Land Reform  | The World Food Crisis of 2005–08  |
Causes of the Crisis  | Consequences of the Crisis  | Summary 

18 Trade and Development 665

Trade Trends and Patterns  | Who Trades?  | Comparative Advantage  |
The Benefits of Trade  | Winners and Losers  | Trading Primary Products  |
empirical evidence on primary export-led growth  | Export Pessimism  |
Declining Terms of Trade?  | Dutch Disease  | dutch disease: a geometric
presentation  | nigeria: a bad case of dutch disease  | indonesia:
finding a cure  | The Resource Trap  | Breaking the Resource Curse  |
Summary 
 CONTENTS xiii

19 Trade Policy 709

Import Substitution  | Protective Tariffs  | Import Quotas  | effective
rates of protection  | Trade Protection and Politics  | the two-
country model with a tariff  | Production Subsidies  | Exchange-
Rate Management  | Outcomes of Import Substitution  | Export
Orientation  | Removing the Bias against Exports  | Favoring
Exports  | Building Export Platforms  | is china’s exchange-rate policy
unfair?  | Trade Strategy and Industrial Policy  | Trade, Growth, and
Poverty Alleviation  | Trade Reforms and Poverty Alleviation  | Key Issues
on the Global Trade Agenda  | Increased Global Competition and the Rise of
China (and India)  | Does Outward Orientation Create Sweatshops?  | labor
activists and labor outcomes in indonesia  | Expanding Market
Access  | Multilateral Trade Negotiations and the WTO  | Temporary
Migration: Another Dimension of International Trade  | Summary 

20 Sustainable Development 757

Will Economic Growth Save or Destroy the Environment?  | Concept and
Measurement of Sustainable Development  | Saving for a Sustainable
Future  | the malthusian effect of population growth on adjusted net
savings in ghana  | Market Failures  | Externalities and the Commons  |
Policy Solutions  | Property Rights  | Government Regulation  | Taxes,
Subsidies, and Payments for Environmental Services  | taxing water pollution
in colombia  | Marketable Permits  | Informal Regulation  | Policy
Failures  | policy failures and deforestation in indonesia  | Poverty-
Environment Linkages  | Global Climate Change  | Summary 

Index 803
 Preface

I
n 1983, when the first edition of this textbook was published, 50 percent of the
world’s population lived in nations the World Bank classified as low income. By
2010 the number had dropped to 12 percent. Much of that change is the result of
rapid economic growth in China and India. Today, both are middle-income econ-
omies. But economic growth and development has not been limited to these two
Asian giants. “Africa Rising” was the cover story of a 2011 issue of The Economist,
reflecting more than a decade of rapid growth in a region The Economist 10 years ear-
lier referred to as “The Hopeless Continent.” Throughout Africa, East and South Asia,
Latin America, and elsewhere, dramatic improvements have been taking place in the
education, health, and living standards of billions of people.
The study of the economics of development has had to keep pace with these his-
toric changes. We have tried to keep pace as well. In this as in previous editions, we
have incorporated new ideas and new data and provide fresh insights from the expe-
riences of the nations that make up the developing world. While there is much that is
new in this seventh edition, the distinguishing features of this text remain the same:

• It is based primarily on the real-world experiences of developing countries.

It explores broad trends and patterns and uses numerous real-country
examples and cases to illustrate major points, many of which are drawn
from the authors’ own experiences.
• It draws heavily on the empirical work of economists who believe that
attention to the data not only reveals what the development process entails
but permits us to test our beliefs about how that process works.
• It relies on the theoretical tools of neoclassical economics to investigate
and analyze these real-world experiences in the belief that these tools
contribute substantially to our understanding of economic development.
• It highlights the diversity of development experience and recognizes
that the lessons of theory and history can be applied only within certain
institutional and national contexts.

As in previous editions, the seventh edition of Economics of Development is intended

to be both accessible and comprehensive. The discussion is accessible to those stu-
dents, whether undergraduates or those pursuing advanced degrees in international
relations, public policy, and related fields, who have only an elementary background
in economics. At the same time, the text provides a comprehensive introduction to all

xv
xvi P R E FA C E

students, including those with significant training in economics, who are taking their
first course in development economics.

Major Changes for the Seventh Edition

The seventh edition of Economics of Development continues and extends the major
revisions of the book initiated in previous editions. The substantial changes reflect
the contributions of three new coauthors—Steven Radelet in the fifth edition, David
Lindauer in the sixth, and Steven Block in the seventh—working alongside origi-
nal coauthor Dwight Perkins. The seventh edition features fundamental revisions
of many chapters. The revised chapters take full advantage of research on develop-
ment economics over the past decade. In addition, there are more and better tables,
charts, and other exhibits chronicling the lessons and remaining controversies of the
development field. The chapter summaries that follow highlight the major changes
in the seventh edition. Asterisks indicate chapters that are essentially or entirely new
for this edition.

Chapter 1 (Patterns of Development) has been condensed. It begins with the three
vignettes—on Malaysia, Ethiopia, and Ukraine—that were introduced in the previ-
ous edition and updated for this one. The chapter includes a new table on the classi-
fication of world economies and populations according to income status. Also added
is a section on how the study of development economics differs from the study of
economics as applied to developed nations.

Chapter 2 (Measuring Economic Growth and Development) reflects important

updates by various agencies and authors, including the 2005 International Compari-
son Program (ICP) estimates of purchasing power parity; Angus Maddison’s latest
and last estimates of world economic growth; and the United Nations Development
Programme’s (UNDP) 2010 revision of the human development index (HDI). The
analysis of economic growth and happiness has been fully revised and expanded,
reversing some of the conclusions first reported in the sixth edition. A new box has
been added on the determinants of long-run economic growth suggested by Jared
Diamond’s Guns, Germs, and Steel. There is also a new box on the use of logarithms,
essential to understanding the HDI and other development measures.

Chapter 3 (Economic Growth: Concepts and Patterns) has been reorganized and
updated to include the latest data and country examples. This edition features a new
box on the calculation of growth rates, future values, and doubling times. Previous
material on the characteristics of production functions and on growth convergence
has been moved to Chapter 4. The previous discussion of structural change has been
entirely rewritten and relocated to Chapter 16, where it supports the discussion of
economic dualism.
 P R E FA C E xvii

Chapter 4 (Theories of Economic Growth) has also been streamlined and consoli-
dated. This edition integrates into its presentation of growth theory the discussions
of production functions and growth convergence previously found in Chapter 3. The
previous discussion of dual-sector growth models has been eliminated from the dis-
cussion of growth theory and relocated to Chapter 16, where its primary purpose is
to illustrate sectoral interactions as a foundation for discussing the role of agriculture
in development. Chapter 4 also provides newly updated data and illustrative figures.

*Chapter 5 (States and Markets) raises the central question, What makes economic
development happen? For this edition, senior author, Dwight Perkins, takes a fresh
look, tracing the evolution of thinking about development from Adam Smith, through
notions of The Big Push advanced in the 1940s by economist Paul Rosenstein-Rodan,
to more recent debates over Structural Adjustment and the Washington Consensus.

Chapter 6 (Inequality and Poverty) updates the analysis of poverty by examining

the revision of the global poverty line from $1 per day to $1.25 per day. Combined
with recent measures of purchasing power parity (PPP), the latest estimates on levels
of both inequality and poverty are presented. A new section, “Living in Poverty,” has
been added that includes insights from the work by economists Abhijit Banerjee,
Esther Duflo, and others on the economic lives of the poor. The use of conditional
cash transfers also receives more attention.

Chapter 7 (Population) incorporates the United Nations 2010 Revision to its world
population projections. The chapter now includes more discussion of the demo-
graphic dividend and a new section on population issues for the twenty-first century.

Chapter 8 (Education) benefits from recent revisions to the Barro-Lee data set
on school attainment and from recent results of the Organisation for Economic
Co-Operation and Development’s (OECD) Programme for International Student
Assessment (PISA). Fuller use is made of econometric approaches, including natural
experiments and randomized controlled trials (RCTs) in determining rates of return
to schooling and the effectiveness of alternative interventions to improve learning
outcomes. A new box on combating teacher absence has been added.

Chapter 9 (Health) now includes an extended discussion of the relationship be-

tween income and health. The Preston curve, showing the relationship between life
expectancy and per capita income is presented and the debate over causality more
fully developed. A box has been added on creating markets for vaccines for diseases
that primarily affect populations in low-income settings.

*Chapter 10 (Investment and Savings) draws on material from two chapters in the
sixth edition. The chapter assumes students have had some background in the prin-
ciples of macroeconomics and focuses on topics central to developing nations. These
include barriers to both public and private investment and alternative sources of
xviii P R E FA C E

savings to finance productive investments. Special attention is given to foreign direct

investment and its role in promoting economic growth.

Chapter 11 (Fiscal Policy) continues to focus on the key components of government

expenditures and revenues. Data have been updated and a box added on the chal-
lenges of fiscal decentralization in Brazil and China.

Chapter 12 (Financial Development and Inflation) reorders some of the material

on monetary policy and price stability, providing a more intuitive flow to the mate-
rial. The discussion of microcredit has been expanded and includes a new box based
on an RCT in India.

Chapter 13 (Foreign Debt and Financial Crises) is updated to provide the most
recent data on foreign debt and provides current examples of financial crises (includ-
ing the 2010–11 Euro Zone crisis, though the focus remains on developing countries).

Chapter 14 (Foreign Aid) has been updated to reflect recent trends in official devel-
opment assistance, which, in part, are the results of events in Afghanistan, Iraq, and
Pakistan. New boxes have been added on the commitment to development index
and on Chinese foreign aid.

Chapter 15 (Managing Short-Run Crises in an Open Economy), formerly Chap-

ter 21, now concludes the section on macroeconomic policies for developing coun-
tries. Presentation of the Australian model of short-run macroeconomic management
has been clarified and illustrated with updated examples. New boxes cover real versus
nominal exchange rates and the Greek debt crisis of 2010–11 (with an application of
the Australian model). This chapter also features a new appendix for this edition, pro-
viding a review of national income and balance of payments accounting.

*Chapter 16 (Agriculture and Development) is the first of two entirely new chapters
on agriculture. This chapter places agriculture in its broad developmental context,
emphasizing the potential contributions of agriculture to both growth and poverty
alleviation. Specific topics include structural transformation, dual-sector growth
models, agriculture and growth, and agriculture as a pathway out of poverty.

*Chapter 17 (Agricultural Development: Technology, Policies and Institutions)

builds on the broad discussion of agriculture and development in the previous chap-
ter, concentrating on policies and institutions to promote agricultural development.
Specific topics introduced in this chapter include a typology of agricultural systems
common in developing countries, a broad framework for analyzing constraints to
agricultural production growth, the role of technical change and the green revolu-
tion, the role of institutions and land reform in agricultural development, and a
review of the global food price crisis of 2005–08.

*Chapter 18 (Trade and Development) presents an overview of trends and pat-

terns in world trade. It reviews the theory of comparative advantage, discussing both
 P R E FA C E xix

the benefits of trade and its distributional consequences. Special attention is paid to
trade in primary products, including export pessimism and the terms of trade, Dutch
disease and the real exchange rate, and the resource curse and responses to it.

*Chapter 19 (Trade Policy) builds on the broad discussion of trade and develop-
ment in the previous chapter. It reviews import substitution as a trade strategy and
the consequences of trade protection. This is followed by discussion of export orien-
tation, including experience with export processing zones. Evidence is presented on
trade, growth, and poverty alleviation. The chapter concludes with an examination
of key issues on the global trade agenda, such as the impact of China and India on
global trade competition, sweatshops and labor standards, the Doha Round of trade
negotiations, and temporary labor migration as a strategy to alleviate world poverty.

*Chapter 20 (Sustainable Development) is essentially a new treatment of the sub-

ject, retaining from the previous edition only the discussion of market and policy
failures. New topics addressed in this edition are the environmental Kuznets curve
hypothesis, an expanded and more analytical treatment of the concept and mea-
surement of sustainable development, institutional perspectives on externalities
(drawing on the work of Elinor Ostrom), payments for environmental services as a
response to externalities, a substantially expanded treatment of poverty-environment
linkages, and a new section on the economics of climate change. New boxes in this
edition cover the Malthusian effect of population growth on adjusted net savings in
Ghana, taxation of water pollution in Colombia, and, policy failures and deforesta-
tion in Indonesia.

About the Authors

Of the four original authors of Economics of Development only Dwight Perkins
remains as an active contributor to this edition. Michael Roemer’s death in 1996 took
from the development field one of its most thoughtful and productive writers and
practitioners. Mike, in many ways, was the single most important contributor to the
earlier editions, and his legacy endures in this edition. Malcolm Gillis, an expert in
issues of public finance and economic development, played the central role in get-
ting this book started in the early 1980s. He later went on to a distinguished career as
president of Rice University, from which he retired. Donald Snodgrass was respon-
sible for Part Three, “Human Resources,” for the first five editions. Both Malcolm Gil-
lis’s and Donald Snodgrass’s strong contributions are evident in the current edition
as well. The new authors are privileged to be part of a text that, thanks to the scholar-
ship of the original authors, helped to define the field of development economics.

Dwight H. Perkins is the H. H. Burbank Professor of Political Economy Emeritus

at Harvard University and former director of the Harvard Institute for International
Development. Professor Perkins is a leading scholar on the economies of East and
Southeast Asia. Professor Perkins’s legacy is contained not only in the many chapters
xx P R E FA C E

he has contributed to Economics of Development and in his many scholarly books

and articles but also in the thousands of students he has taught over his distin-
guished academic career (including all of his current coauthors!).

Steven Radelet joined Economics of Development for its fifth edition. At the time he
was a fellow at Harvard’s Institute for International Development and taught in both
Harvard’s economics department and the Kennedy School of Government. He sub-
sequently was deputy assistant secretary of the U.S. Treasury for Africa, the Middle
East, and South Asia; a Senior Fellow at the Center for Global Development; and
Senior Advisor on Development for Secretary of State Hillary Clinton. He is an expert
on foreign aid, developing country debt and financial crises, and economic growth
and has extensive experience in West Africa and Southeast Asia. He currently serves
as Chief Economist for the U.S. Agency for International Development (USAID). In
that capacity he was unable to contribute to this edition but his prior work on the
textbook significantly informs this edition as well.

David L. Lindauer is the Stanford Calderwood Professor of Economics at Wellesley

College, where he has taught since 1981. He has frequently served as a consultant
to the World Bank and was a faculty associate of the Harvard Institute for Interna-
tional Development. Professor Lindauer’s area of expertise is in labor economics. His
research and policy advising has included work on industrial relations, labor costs
and export potential, minimum wages, poverty and unemployment, public sector
pay and employment, and racial affirmative action. He has worked on labor mar-
ket issues in East and Southeast Asia, Sub-Saharan Africa, and elsewhere. Professor
Lindauer, an award-winning teacher of economics, brings his considerable experi-
ence teaching undergraduates to this edition.

Steven A. Block is Professor of International Economics and head of the Interna-

tional Development Program at the Fletcher School of Law and Diplomacy, Tufts
University. He joins Economics of Development beginning with this edition and has
been teaching development economics at the Fletcher School since 1995. Professor
Block also holds a faculty appointment at the Friedman School of Nutrition Science
and Policy at Tufts University, and has been a visiting scholar at the Harvard Univer-
sity Center for International Development and at Harvard’s Weatherhead Center for
International Affairs. He has published numerous scholarly articles in the areas of
agricultural development and political economy, and worked extensively on policy
advisory teams across Sub-Saharan Africa and in Southeast Asia.

Acknowledgments
Any textbook that makes it to a seventh edition accumulates many debts to colleagues
who read chapters, provided feedback, or contributed in some way to the success and
longevity of the work. We owe many thanks to many people. In these acknowledg-
ments, we wish to thank those individuals who contributed to this edition.
 P R E FA C E xxi

Dwight H. Perkins is grateful to the hundreds of colleagues and students from

around the developing world and at Harvard and other universities in the United
States and elsewhere who, over the past five decades, have taught him what he
knows about development economics and to his wife, Julie, who has joined him on
many of his trips to developing countries.
David L. Lindauer thanks his research assistants, Yue Guan and Teju Vela-
yudhan. They did a tremendous job creating the charts and figures in many of the
chapters. Dana Lindauer, Pasinee Panitnantanakul, and Anisha Vachani provided
additional assistance. Thanks are owed David Johnson and Joseph Stern for help in
drafting several of the text Boxes. He also received excellent comments from Akila
Weerapana (Wellesley College), Jere Behrman (Pennsylvania), Lant Pritchett (Har-
vard), Martin Ravallion (World Bank), and Paul Glewwe (Minnesota). He greatly
appreciates the sabbatical leave provided by Wellesley College that provided the time
needed to produce this edition and wishes to thank his family for all their support.
Steven A. Block thanks his research assistant, Bapu Vaitla, for his impeccable
support and useful suggestions. He is particularly grateful to Peter Timmer (emeritus,
Harvard University) and Jeffrey Vincent (Duke University) for their critical reading
and constructive suggestions for Chapters 16, 17, and 20 of this edition. In addition,
he is grateful to his family—Avi; Ruthie; and wife, Maria—for their love and patience.
All three of us wish to thank everyone at W. W. Norton and Company for their
continued support. We are especially grateful for the continued guidance and efforts
of our editor, Jack Repcheck.

D.H.P. Cambridge
S.R. Washington, D.C.
D.L.L. Wellesley
S.A.B. Tufts
Another random document with
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 The Project Gutenberg eBook of Anthology of
Russian literature from the earliest period to the
present time, volume 1 (of 2)
 This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
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included with this ebook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.

Title: Anthology of Russian literature from the earliest period to

the present time, volume 1 (of 2)
From the tenth century to the close of the eighteenth
century

Author: Leo Wiener

Release date: October 22, 2023 [eBook #71933]

Most recently updated: December 27, 2023

Language: English

Original publication: New York: G. P. Putnam's Sons, 1902

Credits: The Online Distributed Proofreading Team at

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*** START OF THE PROJECT GUTENBERG EBOOK ANTHOLOGY

OF RUSSIAN LITERATURE FROM THE EARLIEST PERIOD TO
THE PRESENT TIME, VOLUME 1 (OF 2) ***
 ANTHOLOGY OF
RUSSIAN LITERATURE

From the
Earliest Period
to the Present
Time

BY
LEO WIENER
ASSISTANT PROFESSOR OF SLAVIC
LANGUAGES AT HARVARD
UNIVERSITY

In Two Parts

8o with Photogravure
Frontispieces

Part I.—From the Tenth Century

to the Close of the
Eighteenth Century

Part II.—From the Close of the

Eighteenth Century to
the Present Time

G. P. PUTNAM’S SONS
NEW YORK LONDON
Lomonosow
Anthology of Russian Literature
From the Earliest Period to the
Present Time

By
Leo Wiener
Assistant Professor of Slavic Languages at Harvard University

IN TWO PARTS

From the Tenth Century to the Close of the Eighteenth Century

G. P. Putnam’s Sons
New York and London
The Knickerbocker Press
1902
 Copyright, 1902
BY
LEO WIENER

Published, June, 1902

The Knickerbocker Press, New York

 TO MY FRIEND AND COLLEAGUE
ARCHIBALD CARY COOLIDGE
THIS WORK IS GRATEFULLY DEDICATED
 PREFACE
The time is not far off when the Russian language will occupy the
same place in the curriculum of American universities that it now
does in those of Germany, France and Sweden. A tongue that is
spoken by more than one hundred million people and that
encompasses one-half of the northern hemisphere in itself invites the
attention of the curious and the scholar. But the points of contact
between the Anglo-Saxon and Slavic races are so many, both in
politics and literature, that it is a matter of interest, if not yet of
necessity, for every cultured person of either nationality to become
well acquainted with the intellectual and social life of the other. In
Russia, the English language is steadily gaining in importance, and
not only the universities, but the gymnasiums as well, offer courses
in English. In England and America there are many signs of a similar
interest in their Russian neighbour, though at present it expresses
itself mainly in the perusal of Russian novels in translations that
rarely rise above mediocrity. There is also a growing demand for a
fuller treatment of Russian Literature as a whole, which even Prince
Wolkonsky’s work cannot satisfy, for the reason that only a small
fraction of the nineteenth-century writers, and hardly anything of the
preceding periods, is accessible to the reader for verification. It is the
purpose of this Anthology to render a concise, yet sufficient, account
of Russian Literature in its totality, to give to the English reader who
is not acquainted with any other language than his own a
biographical, critical and bibliographical sketch of every important
author, to offer representative extracts of what there is best in the
language in such a manner as to give a correct idea of the evolution
of Russian Literature from its remotest time. The selections have
been chosen so as to illustrate certain important historical events,
and will be found of use also to the historical student.
In the preparation of this work, I have availed myself of many
native sources, to which I shall express my indebtedness by a
general declaration that I have with profit perused the monumental
works of Pýpin and the authors on whom he has drawn in the
preparation of his history of Russian Literature. To give variety, I
have reproduced such of the existing translations as are less
objectionable. In my own translations, for which alone I am
responsible, I have attempted to render minutely the originals, with
their different styles, not excepting their very imperfections, such as
characterise particularly the writers of the eighteenth century. Only
where the diction is inexpressibly crude, as in Pososhkóv’s writings,
or the text corrupt, as in the Word of Ígor’s Armament, have I made
slight deviations for the sake of clearness.
Russian words are transliterated differently by every translator:
some attempt to give English equivalents, which, even if they were
correctly chosen (they seldom are), cannot possibly give an idea of
the phonetic values in Russian; others follow the simpler method of
an etymological transliteration of letter by letter, but needlessly
encumber the words with diacritical marks and difficult consonant
combinations. The method pursued here, though far from ideal,
recommends itself for its simplicity. Where the Russian and English
alphabets are practically identical, the corresponding letters are
used; in the other cases, the combinations are made with h, for
which there is no corresponding sound in Russian; for the guttural
vowel y is used, which does also the duty of the English y in yes.
There can be no confusion between the two, as the guttural y before
or after a vowel is extremely rare. It is useless for anyone without
oral instruction to try to pronounce Russian words as the natives do.
The nearest approach will be attained if the consonants be
pronounced as in English (g always hard, zh as z in azure, r always
rolled, kh, guttural like German ch in ach), and the vowels always
open as in Italian (a as a in far, e as e in set, o as o in obey, or a little
longer when accented, u as oo in foot, or a little longer when
accented, y between consonants is guttural, which it is useless to
attempt and had better be pronounced like i: i. e., like i in machine or
bit, according to the accent). The accents are indicated throughout
the work. Accented é is frequently pronounced as yó, but it would be
useless to indicate all such cases. It has not been found practicable
to spell Russian names uniformly when their English forms are
universally accepted.
It will not be uninteresting to summarise all that Englishmen and
Americans have done to acquaint their countrymen with the
language and literature of Russia.
When Russia was rediscovered by England in the middle of the
sixteenth century and the Muscovy Company established itself at
Moscow, there was naturally a demand for Englishmen who could
speak Russian. There are frequent references in native reports to
Englishmen who spoke and wrote Russian fluently and who were
even used as ambassadors to the Muscovite Tsars. It was also an
Englishman, Richard James, who, in 1619, made the first collection
of Russian popular songs. In 1696, the first Russian grammar was
published by the Oxford University Press, though its author, Ludolf,
was not an Englishman by birth. In the eighteenth century, there
seems to have been in England no interest in Russia except as to its
religion, which received consideration from certain divines. An
exception must be made in the case of W. Coxe, who in his Travels
in Poland, Russia, Sweden and Denmark, 1st edition, London, 1784,
gave an excellent account of Russian Literature from German and
French sources. In 1821, Sir John Bowring startled his countrymen
with his Specimens of the Russian Poets, which for the first time
revealed to them the existence of a promising literature. Though his
knowledge of Russian was quite faulty, as his translations prove, yet
he put the poems into such pleasing verses that they became
deservedly popular. A second edition followed the same year, and a
second part two years later.
The impulse given by Sir John Bowring found a ready response in
the periodic press of that time. In 1824 the Westminster Review
brought out an article on Politics and Literature of Russia, which
gave a short review of eighteenth-century literature. In 1827, R. P.
Gillies gave a good sketch of Russian Literature in vol. i of the
Foreign Quarterly Review, based on the Russian work of Grech. The
same year, the Foreign Review brought out a short account, and the
next year an elaborate article on Russian Literature and Poetry, also
after Grech, which for some decades formed the basis of all the
articles and chapters dealing with the same subject in the English
language. The Foreign Quarterly Review brought out similar matter
in vol. viii, xxi, xxiii, xxix, xxx. But more interesting than these, which
are nearly all fashioned after some Russian articles, are the
excellent literary notes in every number, that kept the readers
informed on the latest productions that appeared in Russia. There
seems hardly to have been a public for these notes in England, and
indeed they get weaker with the twenty-fourth volume, and die of
inanity in the thirtieth. This early period of magazine articles is
brought to an end by Russian Literary Biography, in vol. xxxvi (1841)
of the Westminster Review.
The example set by Sir John Bowring found several imitators. We
have several anthologies, generally grouping themselves around
Púshkin, for the first half of the century: W. H. Saunders, Poetical
Translations from the Russian Language, London, 1826; [George
Borrow], The Talisman, with Other Pieces, St. Petersburg, 1835; W.
D. Lewis, The Bakchesarian Fountain, and Other Poems,
Philadelphia, 1849. The Foreign Quarterly Review brought out in
1832 translations from Bátyushkov, Púshkin, and Rylyéev, and in
Blackwood’s Edinburgh Magazine for 1845 T. B. Shaw gave some
excellent translations of Púshkin’s poems. Other articles, treating
individual authors, will be mentioned in their respective places.
While these meagre accounts of Russian Literature, at second
hand, and the scanty anthologies were appearing, there was
published in the Biblical Repository of Andover, Mass., in 1834, the
remarkable work by Talvi, the wife of Dr. Edward Robinson, entitled:
Historical View of the Languages and Literatures of the Slavic
Nations, and this was republished in book-form, and enlarged, in
New York, in 1850. Though there existed some special works by
Slavic scholars, Talvi’s was the first to encompass the whole field in
a scholarly and yet popular manner. It is authoritative even now in
many departments that have not been overthrown by later
investigations, and it is a matter of surprise that none of the later
English writers should have based their Russian Literatures on this
important work, or should have proceeded in the path of Slavic
studies which she had so beautifully inaugurated. There is no excuse
for G. Cox’s translation of F. Otto’s History of Russian Literature, with
a Lexicon of Russian Authors, which appeared at Oxford in 1839,
and adds a number of its own inaccuracies to the blunders of the
German original. Nor is there any notice taken of Talvi in [C. F.
Henningsen’s] Eastern Europe and the Emperor Nicholas, London,
1846, which gives a chapter on Russian Literature, mainly on
Púshkin.
In the sixties W. R. Morfill began to translate some poems from the
Russian, and towards the end of that decade, but especially in the
next, Ralston published his excellent studies on the Folksongs and
Folktales and Krylóv, and in the Contemporary Review, vols. xxiii and
xxvii, two articles on the Russian Idylls. The magazines that in the
seventies reviewed Russian Literature got everything at second
hand, and are of little value: National Quarterly Review, vol. xxiv
(1872); Catholic World, vol. xxi (1875); Harper’s Magazine, 1878. Of
books there were issued: Sutherland Edwards’s The Russians at
Home, London, 1861, a very useful work for contemporary literature,
and F. R. Grahame’s The Progress of Science, Art and Literature in
Russia, London [1865], which contains a great deal of interesting
material badly arranged and ill-digested. The chapter on Literature in
O. W. Wahl’s The Land of the Czar, London, 1875, is unimportant.
Since the eighties there have appeared a number of translations
from good foreign authors bearing on Russian Literature: Ernest
Dupuy, The Great Masters of Russian Literature in the Nineteenth
Century, translated by N. H. Dole, New York [1886]; E. M. de Vogüé,
The Russian Novelists, translated by J. L. Edmands, Boston [1887];
Dr. George Brandes, Impressions of Russia, translated by S. C.
Eastman, New York, 1889; E. P. Bazán, Russia: Its People and its
Literature, translated by F. H. Gardiner, Chicago, 1890.
The following more or less original works will be found useful: W.
R. Morfill, Slavonic Literature, London, 1883, and The Story of
Russia, New York and London, 1890; also his The Peasant Poets of
Russia (Reprint from Westminster Review), London, 1880; C. E.
Turner, Studies in Russian Literature, London, 1882, and before, in
Fraser’s Magazine for 1877; Ivan Panin, Lectures in Russian
Literature, New York and London, 1889; Memorials of a Short Life: A
Biographical Sketch of W. F. A. Gaussen (chapter on The Russian
People and their Literature), London, 1895; Prince Serge Wolkonsky,
Pictures of Russian History and Russian Literature (Lowell Lectures),
Boston, New York and London, 1897; K. Waliszewski, A History of
Russian Literature, New York, 1900, but this work must be used with
extreme caution, on account of the many inaccuracies it contains. W.
M. Griswold’s Tales Dealing with Life in Russia, Cambridge, 1892, is
a fair bibliography of all the prose translations that have appeared in
the English language before 1892. But few anthologies have of late
seen daylight: C. T. Wilson, Russian Lyrics in English Verse, London,
1887; John Pollen, Rhymes from the Russian, London, 1891 (a good
little book); E. L. Voynich, The Humour of Russia, London and New
York, 1895. The periodical “Free Russia,” published in London since
1890, contains some good translations from various writers and
occasionally some literary essay; but the most useful periodic
publication is “The Anglo-Russian Literary Society,” published in
London since 1892, and containing valuable information on literary
subjects, especially modern, and a series of good translations from
contemporary poets. Nor must one overlook the articles in the
encyclopedias, of which those in Johnson’s Cyclopedia are
especially good.
Very exhaustive statements of the modern literary movement in
Russia appear from year to year in the Athenæum. More or less
good articles on modern literature, mainly the novel, have appeared
since 1880 in the following volumes of the periodical press:
Academy, xxi and xxiii; Bookman, viii; Chautauquan, viii and xxii;
Critic, iii; Current Literature, xxii; Dial, xx; Eclectic Magazine, cxv;
Forum, xxviii; Leisure Hours, ccccxxv; Lippincott’s, lviii; Literature, i;
Living Age, clxxxv; Nation, lxv; Public Opinion, xx; Publisher’s
Weekly, liv; Temple Bar, lxxxix.
In conclusion, I desire to express my gratitude to my friends and
colleagues who have aided me in this work: to Prof. A. C. Coolidge,
for leaving at my disposal his collection of translations from the
Russian, and for many valuable hints; to Dr. F. N. Robinson, for
reading a number of my translations; to Prof. G. L. Kittredge, to
whom is largely due whatever literary merit there may be in the
introductory chapters and in the biographical sketches. I also take
this occasion to thank all the publishers and authors from whose
copyrighted works extracts have been quoted with their permission.
 CONTENTS
PAGE
Preface v
A Sketch of Russian Literature 1
I. The Oldest Period 3
II. The Folklore 18
III. The Eighteenth Century 26
The Oldest Period 39
Treaty with the Greeks (911) 41
Luká Zhidyáta (XI. c.) 44
Instruction to his Congregation 44
The Russian Code (XI. c.) 45
Ilarión, Metropolitan of Kíev (XI. c.) 48
Eulogy on St. Vladímir 48
Vladímir Monomákh (1053-1125) 50
His Instruction to his Children 51
Abbot Daniel, the Palmer (XII. c.) 56
Of the Holy Light, how it Descends from Heaven upon 56
the Holy Sepulchre
Epilogue 61
Cyril, Bishop of Túrov (XII. c.) 62
From a Sermon on the First Sunday after Easter 62
Néstor’s Chronicle (XII. c.) 65
The Baptism of Vladímir and of all Russia 65
The Kíev Chronicle (XII. c.) 71
 The Expedition of Ígor Svyatoslávich against the 72
Pólovtses
The Word of Ígor’s Armament (XII. c.) 80
The Holy Virgin’s Descent into Hell (XII. c.) 96
Daniel the Prisoner (XIII. c.) 100
Letter to Prince Yarosláv Vsévolodovich 101
Serapión, Bishop of Vladímir (XIII. c.) 104
A Sermon on Omens 104
The Zadónshchina (XIV. c.) 106
Afanási Nikítin (XV. c.) 111
Travel to India 111
Apocryphal Legends about King Solomon (XV. c.) 114
The Story of Kitovrás 114
Prince Kúrbski (1528-1583) 115
The Storming of Kazán 116
Letter to Iván the Terrible 118
Iván the Terrible (1530-1584) 121
Letter to Prince Kúrbski 121
The Domostróy (XVI. c.) 126
How to Educate Children and Bring them up in the 126
Fear of God
How to Teach Children and Save them through Fear 127
How Christians are to Cure Diseases and all Kinds of 128
Ailments
The Wife is always and in all Things to Take Counsel 128
with her Husband
How to Instruct Servants 129
Songs Collected by Richard James (1619-1620) 130
Incursion of the Crimean Tartars 131
 The Song of the Princess Kséniya Borísovna 132
The Return of Patriarch Filarét to Moscow 133
Krizhánich (1617-1677) 134
Political Reasons for the Union of the Churches 135
On Knowledge 136
On Foreigners 136
Kotoshíkhin (1630-1667) 136
The Education of the Princes 137
The Private Life of the Boyárs and of other Ranks 139
Simeón Pólotski (1629-1680) 149
On the Birth of Peter the Great 150
An Evil Thought 151
The Magnet 151
The Story of Misery Luckless-Plight (XVII. or XVIII. c.) 152
The Folklore 161
Epic Songs 163
Volkh Vseslávevich 163
Ilyá of Múrom and Nightingale the Robber 165
Historical Songs 172
Yermák 172
The Boyár’s Execution 174
The Storming of Ázov 176
Folksongs 177
Kolyádka 178
Bowl-Song 179
A Parting Scene 179
The Dove 180