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32411 Übung: Growth, Inequality and Poverty (WiSe 22/23)
Course venuenicht angegeben
Teaching contact hours per week
DescriptionEconomic growth has led to substantial reductions in poverty world‐wide, specifically in South‐East Asia and in large countries such as China, India and Brazil. The picture is more mixed in Sub‐Saharan Africa where poverty in some parts Has been reduced while in other parts such as theSahel region very recent forecasts suggest at least a stagnation if not an increase. While hencethe reduction in world‐wide poverty is remarkable, in many emerging economies, includingChina, growth and poverty reduction are accompanied by a significant increase in inequality in countries.
The first part of the course which is delivered by Michael Grimm discusses the statistical tools to investigate these dynamics and the underlying policies and external factors causing these changes. The course starts with a presentation of the theoretical foundations of the mainstream welfare measures and discusses the advantages and disadvantages of alternative approaches including Sen’s Capability Approach and the concept of happiness. In this context the course will also critically assess the poverty estimates produced by the World Bank.
The second block starts with the arithmetics linking growth, inequality and poverty and deals with the effects of growth on inequality. The discussions also cover Thomas Piketty’s recent book “Capital in the 21st century”. This block concludes with the inverse relationship, i.e. the effects of inequality and growth. Competing hypotheses are discussed and empirically validated.
The second part of the course which is delivered by Johannes Jütting focusses on how development policies and development co‐operation can help fighting poverty and addressing inequality. It starts with setting out the changing paradigms in development strategies and cooperation over the last decades from the more unilateral focus on poverty in the 70s to the more holistic Agenda 2030 with its ambition to leave no one behind. The course will then turn to the question how digitalization (development 4.0) can provide new opportunities for sustainable growth and improving well‐being of the population. The block ends with a reflection on the contours of a new narrative for development co‐operation in times of an emerging multi‐polar world, shifting wealth from west to east and rising populism in donor countries questioning the effectiveness of multilateral approaches.
Home institutionLehrstuhl f. Development Economics
Pre-requisitesAn understanding of intermediate micro and macro‐economics and basic quantitative analysis is required. Prior knowledge in development economics is an advantage. Students without any prior knowledge in development economics may read the books by either De Janvry and Sadoulet (2016), Perkins (2012), Ray (1998) or Todaro and Smith (2006) (see course book).
Mode of studyThis lecture is organized in a set of lectures and tutorials (Übungen). Part I is taught on a weekly basis (about 7 weeks). Part II is taught as one block over two days. Students are explicitly invited to actively participate in the lecture through questions and input for discussion. In the tutorial students solve set problems in relation to the lecture. In addition students are invited to indicate those parts of the course for which they need additional training. This may refer to a particular concept, an empirical method or a certain debate in development politics. Readings are essential to prepare the class and the exam. Lecture Part I: Start lecture: Wednesday 14.10.2020, 10:00 ‐ 12:00 End lecture: Wednesday 25.11./02.12.2020 Lecture Part II: Intro Lecture Part 1 per video (tba) Friday and Saturday in January 2021 (tba) Tutorial Start tutorial: Thursday 22.10.2020, 10:00 – 12:00 End tutorial: Thursday 4.2.2021. No tutorials: tba Exam: At the end of the term (exact date to be announced)
AssessmentsWritten exam 90 min
Indicative reading list
- Presentation slides
- Set problems (tutorial/Übung)
General background readings
- De Janvry, A. and E. Sadoulet (2016), Development Economics. Theory and Practice. Routledge, London.
- Grimm M., A. McKay and S. Klasen (2007), Determinants of Pro‐Poor Growth: Analytical Issues and Findings from Country Cases. London: Palgrave‐Macmillan.
- Haughton, J. and S. R. Khandker (2009), Handbook on Poverty and Inequality. World Bank, Washington D.C.
- Perkins, D.H., S. Radelet, D.L. Lindauer and S.A. Block (2012), Economics of Development, Norton & Company.
- Ray D. (1998), Development Economics. Princeton University Press: Princeton.
- Shorrocks, A.F. and R. van der Hoeven (2004), Growth, Inequality and Poverty. Prospects for Pro‐Poor Economic Development, Oxford: Oxford University Press.
- Szirmai, A. (2015), Socio‐Economic Development. 2nd edition, Cambridge University Press.
- Todaro, M.P. and S.C. Smith (2006), Economic Development. 9th edition (or newer), Pearson: Essex.
- World Bank (2006), World Development Report: Equity and Development. World Bank, Washington D.C.
For further lectures and seminars offered by the faculties in German please refer to the German version of this website.