Development Economics Global Indicators Group

2008

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2007

This Report draws on a wide range of World Bank documents and on numerous outside sources. Background papers and useful comments were prepared by Arvil Van Adams,

2014

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2024

The Development Economics (E405) module offers a comprehensive exploration of economic growth, poverty reduction, inequality, and human development in developing countries. It begins by defining the scope of development economics and underscores its importance in addressing the unique challenges faced by economies striving for progress. Historical perspectives from figures like Rostow and Prebisch lay the groundwork for understanding the evolution of development theories from classical economics to contemporary paradigms, including sustainable development goals. A critical component of the module is the analysis of poverty and inequality, exploring their causes, consequences, and various measurement methods such as money metrics, multidimensional indicators, and subjective assessments. Students evaluate policy interventions aimed at mitigating these challenges and promoting inclusive growth. The role of economic policies—trade, industrial, fiscal—in shaping development outcomes is also scrutinized, emphasizing their impact on economic transformation and poverty alleviation. Moreover, the module delves into human development indicators, examining how economic growth interacts with factors like health, education, and gender equality. Globalization's influence on developing economies through trade, finance, and technology is another focal point, highlighting both opportunities and challenges for sustainable development. Throughout the module, students develop critical thinking skills to assess empirical evidence and formulate policy recommendations. By exploring the economic dynamics of African economies, urbanization trends, agricultural development, and vulnerabilities to external shocks, students gain insights into the complexities of development processes. In conclusion, the Development Economics module equips students with a robust understanding of theories, policies, and empirical realities in development economics, preparing them to address pressing global development challenges and contribute meaningfully to sustainable economic progress.

Abdella Mohammed Ahmed (M.Sc.), 2024

The word Development can be defined as the process of improving the quality of all human lives and capabilities by raising people’s levels of living, self-esteem, and freedom. Development Economics is the study of how economies are transformed from stagnation to growth and from low income to high-income status, and overcome problems of absolute poverty. Thus, Development Economics mainly deals with development problems of developing countries. In other words, it is about the causes and cures of mass poverty in the less developed nations. Different countries enjoy different levels of economic prosperity /levels of development. In the current world there is a wide gap in the standard of living between countries and as well as between individuals within a country. The vast majority of people in Africa, Asia and L. America live under poverty with little access to basic necessities for life and while people in Western Europe and N. America live in abundance. It may be difficult to get the right answer as to why such disparity exists, is still legitimate to ask why gap exists – try to look for solutions which may help to bridge or reduce the gap. Generally, based on their levels of economic development, countries may be categorized as follows • Developed countries (DCs) – those which have developed economies with high living standards, highly industrialized, modern and rich countries; on the other hand we have developing countries or less developed countries (LDCs) – those which are in the process of development and have low living standards. They are also referred as or under developed, less advanced, less industrialized countries with more of agricultural and traditional economies. • High income, middle income and low income countries based on the per capita income of their respective citizens which depend on the sizes economy and population of each country. • There is also grouping of countries as; first world, second world and third world counties based on levels of economic development. Different organizations use different criteria to group countries by their level of development. The World Bank, for instance, uses per capita income to classify countries as follows • Low-income with per capita income of $765 or less • middle-income (including lower-middle- income), $766 to $3,035 • upper-middle-income, $3,036 to $9,385 • high-income $9,386 or more per capita income The following table shows the per capita income, measured at 2000 US dollar, a selected countries and regions (1998 – 2009). Per capita income is the average annual income of individuals which is obtained by dividing the gross annual income or GDP of a country to its total population. In the table; SSA – sub Saharan Africa countries excluding North Africa, S. Asia – South Asian countries including India, Bangladesh, Pakistan, Sri Lanka, Maldives, Nepal, and Bhutan; and L. A – Latin American countries, S. Africa - SouthAfrica, EU – European Union member countries. • The per capita income of Ethiopia is lower than Kenya, Uganda, Tunisia, etc for all periods. Of course for every year, the per capita income of Kenya is more than twice than that of Ethiopia. • The per capita income of Tunisia is even higher than that of china and India for every year. Dev’t Economics looks into the factors that account to this disparity in the level of economic dev’t and the possibility to close the gap /the disparity in the economies of the poor and rich countries. It also tries to identify the institutional and structural set up that are pertinent to the evolution of an economy. It tries to answer questions such as:- 1. Why does affluence co-exist with poverty across different continents, countries and across people within a nation? 2. How does traditional, subsistent, low productivity society can be transformed in to modern, high productivity and high income nations? 3. How economic development could be measured? 4. To what extent the development aspiration of poor nations helped or hindered by the economic condition of the rich nations? 5. Is convergence between the developed and developing economies is possible? 6. What experiences and methods are there to accelerate economic development of a nation? Definition; Development Economics can be defined as a branch of economics that studies the process of transformation developing economies into a developed one. In other words, it studies how an under developed economy could successfully be transform into a modern-developed economy. It also studies the measurement problems of economic development; identify key variables that matters to development and possibility of closing gap in living standards among peoples of developed and underdeveloped countries. Economic development is the prime objective of the developing countries, because their economies are only in the early stages of transformation, currently operating below capacity and didn’t satisfy the needs of their people. Thus, there is an urgent need in these countries for accelerated economic development, solve their acute socio-economic problems and improve the quality of lives their poverty stricken people. As such development economics is the study of the economies of developing countries.

2013

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

MSU INTERNATIONAL DEVELOPMENT PAPERS The MSU International Development Paper series is designed to further the comparative analysis of international development activities in Africa, Latin America, Asia, and the Near East. The papers report research findings on historical, as well as contemporary, international development problems. The series includes papers on a wide range of topics, such as alternative rural development strategies; nonfarm employment and small scale industry; housing and construction; farming and marketing systems; food and nutrition policy analysis; economics of rice production in West Africa; technological change, employment, and income distribution; computer techniques for farm and marketing surveys; farming systems and food security research.

The World Bank Economic Review, 2008

The World Bank Economic Review is a professional journal for the dissemination of World Bank-sponsored and other research that may inform policy analysis and choice. It is directed to an international readership among economists and social scientists in government, business, international agencies, universities, and development research institutions. The Review seeks to provide the most current and best research in the field of quantitative development policy analysis, emphasizing policy relevance and operational aspects of economics, rather than primarily theoretical and methodological issues. It is intended for readers familiar with economic theory and analysis but not necessarily proficient in advanced mathematical or econometric techniques. Articles illustrate how professional research can shed light on policy choices. Consistency with World Bank policy plays no role in the selection of articles. Articles are drawn from work conducted by \Vorld Bank staff and consultants and by outside researchers. :"Ion-Bank contributors are encouraged to submit their work. SUBSCRIPTIONS: A subscription to The World Bank Economic Review (ISSN 0258-6770) comprises 3 issues. Prices include postage; for subscribers outside the Americas, issues are sent air freight.