Be able to define, explain the characteristics, and compare the differences between Economic Growth and Economic Development. Tied to this question, or perhaps, as another potential question, be able to discuss the various reasons “why some countries are poor.”
Chapter 2 concerns itself with the problem of measuring economic growth. As another possible question, consider the standard methods for measuring income (GDP, per capita income, etc) and what gets missed in these measurements. This would involve non-market activity, PPP, and the HDI (Human Development Index)…a more recent innovation introduced by the UNDP.
Also from Chapter 2, have a thorough knowledge of the Millennium Development Goals. Why were they created, what are the goals–with descriptions…along with the targets hoped to be achieved by 2015.
Chapter three begins with a sub-category titled “Divergent Patterns of Economic Growth since 1960”; it authors discuss four categories of countries–be able to discuss the features of all four of these categories of economic growth in this narrative.
Next, from Chapter 3, know the Solow growth model. (You do not need to memorize the equation or math). I want you to be able to identify the theory behind Solow’s model and why he is was important then, and continues to be important in developmental studies. Be sure to know “growth accounting (sources of growth analysis) and “total factor productivity.” Also explain the “Solow residual. What is the “undefinable feature of the Solow residual…which has led to some economic debate?
Second in Chapter 3, know and be able to discuss the “Six Characteristics of Rapidly Growing Countries.”
SKIP CHAPTER FOUR
Now to Chapter 5, be able to discuss the origin of “economic development” after WWII, along with the changes which took place in the 1970s and 1980s, which culminates with our discussion of the mini-dragons, and China’s and Vietnam’s change in economic direction during this period.
Also, know the 10 principles, basically developed by economist John Williamson, which become known as “The Washington Concensus.” Be sure to read over pp. 153-159 “Was the Washington Consensus a Success or Failure?”
From Chapter 6, “Inequality and Poverty, be sure to finish reading on your own. We will wrap up what we have time to do in class on Tuesday. Familiarize and be able to explain the different methods for measuring inequality…especially the Lorenz Curve and the Gini Coefficient. Discuss how some economists argue that growth leads to inequality, but that it may eventually correct itself. Also be familiar with “What is Poverty” and “Who are the Poor.” Also discuss why economic growth is good for the poor and what “Pro-Poor Growth” is.
Box Studies to know: Box 2.1 “Jard Diamond, Guns, Germs, and Steel”; Box 3.1 “Botswana’s Remarkable Economic Development”; Box 5.2 “Ghana after Independence”; and 5.3 “The Declining Effectiveness of Government Intervention…in Korea” Read these four Box Studies carefully. These, along with some of our Wall Street Journal stories will serve as the identify section of your tests.
If you’ve been to every class and taken notes and read, you should be in outstanding shape when it comes to preparing for the test. There will be two to three essay categories to answer, and about five identify sections. ID’s are, in short, when you write a paragraph or 6-8 sentences describing a reading–I’ve always told students, think “Who, what, where, when, why, and how”…like grade school lit, and you’ll get it! The essays will be about 70 per-cent of your test, and the ID’s 30 percent. Please start studying early. Although most of you are upper class students, I always recommend breaking preparation down by units (Chapter One, Chapter Two) go over each individual unit four or five times, then move onto the next. Don’t try to study everything we’ve covered in one sitting…that’s where you get things mixed up when you take your test. Please put good study prep into motion here and do a great job on your first test. There are no “tricks” to my test…if you study what I’ve told you to study WELL, you do WELL!