Preface |
International Development Resources on the Internet |
Development and Growth / Part 1: |
Patterns of Development / 1: |
Three Vignettes |
Malaysia |
Ethiopia |
Ukraine |
Development and Globalization |
Rich and Poor Countries |
Growth and Development |
Diversity in Development Achievements |
Approaches to Development |
The Study of Development Economics |
Organization |
Summary |
Measuring Economic Growth and Development / 2: |
Measuring Economic Growth |
Measuring GDP: What Is Left Out? |
Exchange-Rate Conversion Problems |
Economic Growth around the World: A Brief Overview |
tared diamond: guns, germs, and steel |
Economic Growth, 1970-2010 |
What Do We Mean by Economic Development? |
Measuring Economic Development |
Human Development Defined |
Why Use Logarithms? |
What Can We Learn from the Human Development Index? |
Millennium Development Goals |
Targets of the Millennium Development Goals |
Is Economic Growth Desirable? |
Economic Growth: Concepts and Patterns / 3: |
Divergent Patterns of Economic Growth since 1960 |
Botswana's Remarkable Economic Development |
Factor Accumulation, Productivity, and Economic Growth |
Calculating, Future Values, Growth Rates, and Doubling Times |
Saving, Investment, and Capital Accumulation |
Sources of Growth Analysis |
Characteristics of Rapidly Growing Countries |
Macroeconomic and Political Stability |
Investment in Health and Education |
Effective Governance and Institutions |
Institutions, Governance, and Growth |
Favorable Environment for Private Enterprise / 4: |
Trade, Openness, and Growth / 5: |
Favorable Geography / 6: |
Theories of Economic Growth |
The Basic Growth Model |
The Harrod-Domar Growth Model |
The Fixed-Coefficient Production Function |
The Capital-Output Ratio and the Harrod-Domar Framework |
Strengths and Weaknesses of the Harrod-Domar Framework |
Economic Growth in Thailand |
The Solow (Neoclassical) Growth Model |
The Neoclassical Production Function |
The Basic Equations of the Solow Model |
The Solow Diagram |
Changes in the Saving Rate and Population Growth Rate in the Solow Model |
Population Growth and Economic Growth |
Technological Change in the Solow Model |
Strengths and Weaknesses of the Solow Framework |
Diminishing Returns and the Production Function |
Explaining Differences in Growth Rates |
The Convergence Debate |
Beyond Solow: New Approaches to Growth |
States and Markets |
Development Thinking after World War II |
Market Failure |
Fundamental Changes in the 1970s and 1980s |
Ghana After Independence |
The Declining Effectiveness of Government Intervention in the Market: Korea, 1960s-2010 |
Structural Adjustment, the Washington Consensus, and the End of the Soviet Model |
Soviet Command Model to Market Economies: The Great Transition |
Was the Washington Consensus a Success or Failure? |
Distribution and Human Resources / Part 2: |
Inequality and Poverty |
Measuring Inequality |
Patterns of Inequality |
Growth and Inequality |
What Else Might Cause Inequality? |
Why Inequality Matters |
Measuring Poverty |
Poverty Lines |
National Poverty Lines in Bangladesh, Mexico, and the United States |
Wily $1.25 a Day? |
Dissenting Opinions on the Extent of Absolute Poverty |
Who is Not Poor? |
Poverty Today |
Who Are the Poor? |
Living in Poverty |
Strategies to Reduce Poverty |
Growth is Good for the Poor |
Sometimes Growth May Not Be Enough |
Pro-Poor Growth |
Why Should Development Strategies Have a Poverty Focus? |
Improving Opportunities for the Poor |
Income Transfers and Safety Nets |
Global Inequality and the End of Poverty |
Population / 7: |
A Brief History of World Population |
The Demographic Transition |
The Demographic Situation Today |
Total Fertility Rates |
The Demographic Future |
Population Momentum |
The Causes of Population Growth |
Thomas Malthus, Population Pessimist |
Why Birth Rates Decline |
Population Growth and Economic Development |
Population and Accumulation |
Population Growth, Age Structure, and Dependency Ratios |
Population and Productivity |
Population and Market Failures |
Population Policy |
Family Planning |
Authoritarian Approaches |
Missing Girls, Missing Women |
Population Issues for the Twenty-First Century |
Education / 8: |
Trends and Patterns |
Stocks and Flows |
Boys versus Girls |
Schooling versus Education |
Education as an Investment |
The Rate of Return to Schooling |
Estimated Rates of Return |
First-Generation Estimates |
Estimating Rates of Return from Wage Equations |
Second-Generation Estimates |
Puzzles |
Returns to Schooling and Income Opportunities |
Making Schooling More Productive |
Underinvestment |
Misallocation |
Improving Schools |
Reducing the Costs of Going to School |
Mexico's Progresa |
Inefficient Use of Resources |
It Is about More than the Money |
Combating Teacher Absence |
Health / 9: |
What Is Health? |
Life Expectancy |
Transitions in Global Health |
The Epidemiologic Transition |
The Determinants of Improved Health |
Health, Income, and Growth |
Income and Health |
How Beneficent is the Market? A Look at the Modern History of Mortality |
Health and Productivity |
Health and Investment |
Three Critical Diseases |
Malaria, Yellow Fever, and the Panama Canal |
HPV/AIDS |
HIV/AIDS, Malaria, and Tuberculosis: Some Basics |
Malaria |
Making Markets for Vaccines |
Tuberculosis |
What Works? Some Successes in Global Health |
Preventing HIV/AIDS in Thailand |
Controlling Tuberculosis in China |
Eradicating Smallpox |
Eliminating Polio in Latin America |
Preventing Deatlis from Diarrheal Disease |
Lessons Learned |
Health Challenges |
Macroeconomic Policies for Development / Part 3: |
Investment and Savings / 10: |
Using Investment Productively: Cost-Benefit Analysis |
Present Value |
Opportunity Costs |
Shadow Prices |
Welfare Weights |
Barriers to Productive Public and Private Investment |
Barriers to Doing Business |
Foreign Direct Investment |
FDI Patterns and Products |
Benefits and Drawbacks of FDI |
FDI and Growth |
Policies Toward Foreign Direct Investment |
Savings |
Household Saving and Consumption |
Corporate Saving |
Government Saving |
Foreign Saving |
Fiscal Policy / 11: |
Government Expenditures |
Categories of Government Expenditures |
Reining in Fiscal Decentralization in Brazil and China |
Government Revenue and Taxes |
Tax Rates and Smuggling: Colombia |
Taxes on International Trade |
Sales and Excise Taxes |
Personal and Corporate Income Taxes |
New Sources of Tax Revenues |
Changes in Tax Administration |
Fundamental Tax Reform |
Tax Administration in India and Bolivia in the 1980s |
Indonesian Tax Reform |
Taxes and Income Distribution |
Personal Income Taxes |
Taxes on Luxury Consumption |
Corporate Income and Property Taxes: The Incidence Problem |
Economic Efficiency and the Budget |
Sources of Inefficiency |
Neutrality and Efficiency: Lessons from Experience |
Financial Development and Inflation / 12: |
The Functions of a Financial System |
Money and the Money Supply |
Financial Intermediation |
Transformation and Distribution of Risk |
Stabilization |
Inflation |
Inflation Episodes |
Hyperinflation in Peru, 1988-90 |
Monetary Policy and Price Stability |
Monetary Policy and Exchange-Rate Regimes |
Sources of Inflation |
Controlling Inflation through Monetary Policy |
Reserve Requirements |
Credit Ceilings |
Interest-Rate Regulation and Moral Suasion |
International Debt and Combating Recessions |
Financial Development |
Shallow Finance and Deep Finance |
Shallow Financial Strategy |
Deep Financial Strategy |
Informal Credit Markets and Micro Credits Does Micro Credit Reduce Poverty? |
Foreign Debt and Financial Crises / 13: |
Advantages and Disadvantages of Foreign Borrowing |
Debt Sustainability |
Debt Indicators |
From Distress to Default |
A Short History of Sovereign Lending Default |
The 1980s Debt Crisis |
Causes of the Crisis |
Impact on the Borrowers |
Escape from the Crisis, for Some Countries |
The Debt Crisis in Low-Income Countries |
Debt Reduction in Low-Income Countries |
The Heavily Indebted Poor Country Initiative |
Odious Debt |
Debt Relief in Uganda |
Emerging Market Financial Crises |
Domestic Economic Weaknesses |
Short-Term Capital Flows |
Creditor Panic |
Model of Self-Fulfilling Creditor Panics |
Stopping Panics |
Lessons from the Crises |
Foreign Aid / 14: |
Donors and Recipients |
What Is Foreign Aid? |
Who Gives Aid? |
The Marshall Plan |
The Commitment to Development Index |
Who Receives Foreign Aid? |
The Motivations for Aid |
China's Foreign Aid |
Aid, Growth, and Development |
View 1. Although Not Always Successful, on Average, Aid Has a Positive Impact on Economic Growth and Development |
Controlling River Blindness in Sub-Saharan Africa |
View 2. Aid Has Little or No Effect on Growth and Actually May Undermine Growth |
Food Aid and Food Production |
View 3. Aid Has a Conditional Relationship with Growth, Stimulating Growth Only Under Certain Circumstances, Such as in Countries with Good Policies or Institutions |
Donor Relationships with Recipient Countries |
The Principal-Agent Problem |
Conditionality |
Improving Aid Effectiveness |
Managing Short-Run Crises in an Open Economy / 15: |
Equilibrium in a Small, Open Economy |
Internal and External Balance |
Real Versus Nominal Exchange Rates |
The Phase Diagram |
Equilibrium and Disequilibrium |
Pioneering Stabilization: Chile, 1973-84 |
Stabilization Policies |
Applications of the Australian Model |
Dutch Disease |
Recovering from Mismanagement: Ghana, 1983-91 |
Debt Repayment Crisis |
Stabilization Package: Inflation and a Deficit |
The Greek Debt Crisis of 2010-12 |
Drought, Hurricanes, and Earthquakes |
Appendix to Chapter 15: National Income and the Balance of Payments |
Agriculture, Trade, and Sustainability / Part 4: |
Agriculture and Development / 16: |
Unique Characteristics of the Agricultural Sector |
Structural Transformation |
Two-Sector Models of Development |
The Labor Surplus Model |
Surplus Labor in China |
The Neoclassical Two-Sector Model |
Debates Over Surplus Labor |
Evolving Perspectives on the Role of Agriculture in Economic Growth and Poverty Alleviation |
Agriculture and Economic Growth |
The Nutrition Linkage to Economic Growth |
Agriculture and Poverty Alleviation |
Agricultural Growth as a Pathway out of Poverty |
Agricultural Development: Technology, Policies, and Institutions / 17: |
Characteristics of Traditional Agriculture and Agricultural Systems |
Agricultural Systems |
Diagnosing the Constraints to Agricultural Development |
Raising the Technical Ceiling |
The Green Revolution |
Recent Trends in Agricultural Productivity |
A Model of Induced Technical Change in Agriculture |
Raising the Economic Ceiling |
Food Production Analysis |
What to Produce? The Product-Product Decision |
How to Produce It? The Factor-Factor Decision |
How Much to Produce? The Factor-Product Decision |
Fertilizer Subsidies in Malawi |
Market Access |
Cell Phones and Agricultural Development |
Institutions for Agricultural Development |
Land Reform |
The World Food Crisis of 2005-08 |
Consequences of the Crisis |
Trade and Development / 18: |
Trade Trends and Patterns |
Who Trades? |
Comparative Advantage |
The Benefits of Trade |
Winners and Losers |
Trading Primary Products |
Empirical Evidence on Primary Export-Led Growth |
Export Pessimism |
Declining Terms of Trade? |
Dutch Disease: A Geometric Presentation |
Nigeria: A Bad Case of Dutch Disease |
Indonesia: Finding a Cure |
The Resource Trap |
Breaking the Resource Curse |
Trade Policy / 19: |
Import Substitution |
Protective Tariffs |
Import Quotas |
Effective Rates of Protection |
Trade Protection and Politics |
The Two-Country Model with a Tariff |
Production Subsidies |
Exchange-Rate Management |
Outcomes of Import Substitution |
Export Orientation |
Removing the Bias against Exports |
Favoring Exports |
Building Export Platforms |
Is China's Exchange-Rate Policy Unfair? |
Trade Strategy and Industrial Policy |
Trade, Growth, and Poverty Alleviation |
Trade Reforms and Poverty Alleviation |
Key Issues on the Global Trade Agenda |
Increased Global Competition and the Rise of China (and India) |
Does Outward Orientation Create Sweatshops? |
Labor Activists and Labor Outcomes in Indonesia |
Expanding Market Access |
Multilateral Trade Negotiations and the WTO |
Temporary Migration: Another Dimension of International Trade |
Sustainable Development / 20: |
Will Economic Growth Save or Destroy the Environment? |
Concept and Measurement of Sustainable Development |
Saving for a Sustainable Future |
The Malthusian Effect of Population Growth on Adjusted Net Savings in Ghana |
Market Failures |
Externalities and the Commons |
Policy Solutions |
Property Rights |
Government Regulation |
Taxes, Subsidies, and Payments for Environmental Services |
Taxing Water Pollution in Colombia |
Marketable Permits |
Informal Regulation |
Policy Failures |
Policy Failures and Deforestation in Indonesia |
Poverty-Environment Linkages |
Global Climate Change |
Index |