Approaches to the causes of growth in the developing world

“It’s the institutions stupid” (D. Rodrik)

Critically examine the contrasting approaches to the causes of growth in the developing world. (600+ words)

AIMS:

•  To identify the conditions which contribute to Growth
•  To identify those nations most likely to succeed in this endeavour
• To analyse the performance of the NICS and assess the lessons of their experience for LDCs in general

• To assess the nature of growth in developing countries.

Reading

Rodrik D “Growth Strategies” available at
http://www.hks.harvard.edu/fs/drodrik/Research%20papers/GrowthStrategies.pdf

See in particular Rodrik’s most recent contribution to examining growth at http://www.sss.ias.edu/files/pdfs/Rodrik/Research/Structural-Change-Fundamentals-and-Growth-An-Overview_revised.pdf

Acemoglu D and Robinson J.A. (2012) Why Nations Fail, New York: Crown

What does the lecturer expect from students?

• Introduction: What are you going to argue and conclude?

• Which countries comprise the NICs and what is remarkable about their progress?

• Which elements of economic policy do neo-classical writers highlight as being the main reasons for this growth?

• Is there evidence that these can explain the rapid growth?

• What do structuralist writers argue? Why do they argue that it is not possible to derive a universal blueprint for industrial success?

• What do they see as the structural obstacles that other poor countries will need to overcome?

• On balance what are the structural changes that are needed if countries are to harness their market potential and what is the role of the state in achieving this?
• Conclusion