An introductory course in development economics should help students gain a better understanding of a number of critical questions about the economies of developing nations. The following is a sample list of 23 such questions followed by the chapters (in parentheses) in which they are discussed. They illustrate the kinds of issues faced by almost every developing nation and, indeed, every development economist.
- What is the real meaning of development, and how can different economic concepts and theories contribute to a better understanding of the development process? (Chapters 1, 4, and 5)
- What are the sources of national and international economic growth? Who benefits from such growth and why? Why do some countries make rapid progress toward development while many others remain poor? (Chapters 2, 3, 4, and 5)
- Which are the most influential theories of development and are they compatible? Is underdevelopment an internally (domestically) or externally (internationally) induced phenomenon? (Chapters 4 and 5)
- What can be learned from the historical record of economic progress in the now developed world? Are the initial conditions similar cr different for contemporary LDCs from what the developed countries faced on the eve of their industrialization? (Chapter 3)
- How can improvement in the role and status of women have an especially beneficial impact on development prospects? (Chapters 6, 7, 8, 9, 10, and 11)
- Is rapid population growth threatening the economic progress of developing nations? Do large families make economic sense in an environment of widespread poverty and financial insecurity? (Chapter 7)
- What are the causes of extreme poverty, and what policies have been most effective for improving the lives of the poorest of the poor? (Chapters 6, 7, 8, 9, 10, 11, and 17)
- Wealthier societies are also healthier ones, because they have more resources for improving nutrition and health care. But does better health also help spur successful development? (Chapter 9)
- Why is there so much unemployment in the developing world, especially in the cities, and why do people continue to migrate to the cities from rural areas even though their chances of finding a job are very slim? (Chapter 8)
- Do educational systems in LDCs really promote economic development, or are they simply a mechanism to enable certain select groups or classes of people to maintain positions of wealth, power, and influence? (Chapter 9)
- As 60% to 70% of many IDC populations still reside in rural areas, how can agricultural and rural development best be promoted? Are higher agricultural prices sufficient to stimulate food production, or are rural institutional changes (land redistribution, roads, transport, education, credit, etc.) also needed? (Chapter 10)
- What do we mean by "environmentally sustainable development"? Are there serious economic costs of pursuing sustainable development as opposed to simple output growth, and who bears the major responsibility for global environmental damage—the rich North or the poor South? (Chapter 11)
- Is expanded international trade desirable from the point of view of the development of poor nations? Who really gains from trade, and how are the advantages distributed among nations? (Chapter 12)
- Should exports of primary products such as agricultural commodities be promoted, or should all LDCs attempt to industrialize by developing their own manufacturing industries as rapidly as possible? (Chapter 13)
- How did developing nations get into such serious foreign-debt problems, and what are the implications of this debt for the economies of both less developed and more developed nations? (Chapter 14)
- When and under what conditions should LDC governments adopt a policy of foreign-exchange control, raise tariffs, or set quotas on the importation of certain "nonessential" goods in order to promote their own industrialization or to ameliorate chronic balance of payments problems? What has been the impact of International Monetary Fund "stabilization programs” and World Bank "structural adjustment" lending on the balance of payments and growth prospects of heavily indebted LDCs? (Chapters 13 and 14)
- Should large and powerful multinational corporations be encouraged to invest in the economies of poor nations, and if so, under what conditions? How have the emergence of the "global factory" and the globalization of trade and finance influenced international economic relations? (Chapters 15 and 18)
- What is the impact of foreign economic aid from rich countries? Should developing countries continue to seek such aid, and if so, under what conditions and for what purposes? Should developed countries continue to offer such aid, and if so, under what conditions and for what purposes? (Chapter 15)
- Are free markets and economic privatization the answer to development problems, or do developing governments still have major roles to play in their economies? (Chapter 16)
- What is meant by globalization, and how is it affecting the developing countries? (Chapters 12 and 13)
- Why do so many developing countries select such poor development policies, and what can be done to improve these choices? (Chapter 16)
- What is the role of financial and fiscal policy in promoting development? Do large military expenditures stimulate or retard economic growth? (Chapter 17)
- How can the extremes between rich and poor countries be so very great? Figure 1.1 illustrates this disparity (Chapters 2, 3, 4, and 5)
The following chapters analyze and explore these and many related questions. The answers are often more complex than one might think. Remember that the ultimate purpose of any course in economics, including development economics, is to help students think systematically about economic problems and issues and formulate judgments and conclusions on the basis of relevant analytic principles and reliable statistical information. Because the problems of development are in many cases unique in the modern world and not often easily understood through the use of traditional economic theories, we may often need unconventional approaches to what may appear to be conventional economic problems. Traditional economic principles can play a useful role in enabling us to improve our understanding of development problems, but they should not blind us to the realities of local conditions in less developed countries.
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