Module Code and Title:       DEV303          Development Process and Institutions

Programme:                          BA in Development Economics

Credit Value:                         12

Module Tutor:                       Sanjeev Mehta

General Objective: This module covers a theoretical/conceptual framework of development processes and institutions. It examines mutually reinforcing processes and institutions that affect human choices, and the effectiveness of development interventions. The module aims to develop analytical tools that help to understand the roles of demographic processes, market structures, social and economic institutions that affect economic development.

Learning outcomes – On completion of this module, learners should be able to:

1. Describe the role of institutions in economic development.
2. Identify the role of demographic processes in economic development.
3. Evaluate demographic trends.
4. Analyse the impact of agrarian relationships on productivity.
5. Evaluate the framework of financial services in the rural and informal sectors.
6. Explain the role of collective action and social capital in the process of economic development.
7. Define sustainability and trace linkages between poverty, environment and climate change.
8. Effectively participate in the debate on the impact of globalisation.

Learning and Teaching Approach: This module will be taught by means of lectures, tutorials, classroom workshops and self-directed study. Lectures will aim at explanation of various concepts and theories aided by tutorials. Relevant Bhutan-specific issues will be discussed by the tutor. Classroom workshops will be used for the analyses of demographic data and its policy implications. 

Assessment Approach:

A. Individual Assignments (2): Portion of Final Marks: 30%

One each before and after mid semester examination, students will complete assignments on the use of demographic data for analysing policy implications, and review the role of tailor-made financial services for the informal sectors. Each assignment (worth 15%) should have a maximum limit of 500 words.

• 2%       Adequacy of references used
• 2%       Defining the concepts
• 3%       Use of effective analytical tools
• 5%       Analysis and discussion on findings
• 3%       Conclusion

B. Class Test: Portion of Final Marks: 10%

One written test will be conducted that will comprise 45 min duration and cover 4 weeks of materials.

C. Group Work: Portion of Final Mark: 15%

In groups of 4, students will develop a report on a Bhutan-specific case study, by selecting any relevant topic. Report word limit: 700 words. The written report will be followed by a 20 min group presentation.

• 1%       Situation analysis
• 2%       Methodology of group work
• 6%       Discussion on findings in the joint report
• 4%       Peer review of individual reports
• 2%       Presentation (individually marked)

D. Midterm Examination: Portion of Final Mark: 15%

Students will take a written exam of 1.5 hr duration covering topics up to the mid-point of the semester.

Pre-requisites: DEV201 Development Problems and Policies, and DEV202 World Economic History

Subject matter:

1. Introduction
   • Primacy of development process: inclusive, sustainable and integrative
   • Role of institutions in economic development, interrelationship between institutions and development processes
   • Types of institutions
2. Demography and Development
   • Demographic concepts; birth and death rates, age structure, fertility and mortality
   • Demographic transitions during the process of development
   • Gender bias in preferences and outcomes and evidence on unequal treatment within households
   • Connections between income, mortality, fertility choices and human capital accumulation
   • Migration
3. Land, Labour and Credit Markets
   • The distribution of land ownership
   • Land reform and its effects on productivity
   • Contractual relationships between tenants and landlords
   • Land acquisition; nutrition and labour productivity
   • Informational problems and credit contracts
   • Microfinance
   • Inter-linkages between rural factor markets
4. Individuals, Communities and Collective Outcomes
   • Individual behaviour in social environments and multiple social equilibria
   • Governance in organizations and in communities
   • Individual responses to organizational inefficiency
5. Environment and Sustainable Development
   • Defining sustainability for renewable resources
   • A brief history of environmental change
   • Common-pool resources
   • Environmental externalities and state regulation of the environment
   • Economic activity and climate change
6. Globalization
   • Globalization in historical perspective
   • The economics and politics of multilateral agreements
   • Trade, production patterns and world inequality
   • Financial instability in a globalized world

Reading List:

1. Essential Reading
   • Bardhan, P. (2006). Institutions in Development. In D. Clarke (ed). The Elgar Companion to Development Studies (pp.2-56). Edward Elgar Publishing.
   • Ostrom, E. (1990). Governing the Commons: The Evolution of Institutions for Collective Action, Cambridge University Press.
   • Ray, D. (2009). Development Economics. Oxford University Press.
   • Rodrick, D., Subramanian, A., & Trebbi, F. (2004). Institutions Rule: The Primacy of Institutions over Geography and Integration in Development. Journal of Economic Growth 9(2), pp. 131-165.
2. Additional Reading
   • Banerjee, A., Benabou, R. & Mookerjee, D. (2006). Understanding Poverty. Oxford University Press.
   • Bordo, M.D. Taylor, A. M., & Williamson, J. G. (Ed.). (2003). Globalization in Historical Perspective. University of Chicago Press.
   • Rajan, R., (2010). Fault Lines: How Hidden Fractures Still Threaten the World Economy. Princeton Press.
   • Rodrik, D. (2011). The Globalization Paradox: Why Global Markets, States and Democracy Can’t Coexist. Oxford University Press.
   • Schelling, T. (2006). Micromotives and Macrobehavior. W. W. Norton.

Date: January 15, 2016