Essay Question:

"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