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Development Economics

EKN 315

Lecture 1: Introduction- Set the stage

Ms. Saida Musyoki, 2026

Outline EXPLORE HOW THE WORLD IS AND WHERE IT'S GOING INTRODUCE DEVELOPMENT ECONOMICS INTRODUCE THE TEACHING TEAM STRUCTURE OF THE CLASS: SYLLABUS, TOPICS, GRADING INTRODUCTION OF WHATSAPP

The richest people in poor countries are poorer than the poor of rich countries.

There is a huge progress in decreasing global extreme poverty Source: https://www.brookings.edu/interactives/the-final-countdown-prospects-for-ending-extreme-poverty-by- 2030 - interactive/#poverty_scenarios

Most of the poor live in Sub-Saharan Africa Source: https://www.worldbank.org/content/dam/Worldbank/document/State_of_the_poor_paper_April17.pdf

We are making progress in extending lifespans too

Strong correlation between life expectancy and GDP per capita

Literacy has also grown as countries get richer.

The absolute number of war deaths has been declining since

1. And yet, conflict and violence are currently on the rise

The War in Ukraine Threatens Global Food Security

What is Development Economics?

• Todaro and Smith: Economics of contemporary underdeveloped countries
• Study of how the developed countries became developed, and why the rest of the world did not develop
• Study of the poor within any country: What constraints do the poor live under that are different? How do they live their lives? Different definitions but related

Optimism

• “Most of the people in the world are poor, so if we

knew the economics of being poor, we would know

much of the economics that really matters.” (Schultz

1980, p.639)

• By studying the economies of poor countries and the

poor themselves, we hope to understand what may be

holding them back.

• We study development economics in the hope that by

better understanding how development occurs, we

can make the world a better place.

Prescribed study materials Economic Development, 11/E Michael P. Todaro and Stephen C. Smith—ISBN-10: 0138013888 ISBN-13: 9780138013882 l’2012 Prentice Hall. Any of 10, 11, or 12 edition should be fine. Reading materials will be posted on CLICKUP Please read the prescribed reading materials before-hand and be ready to your classes to discuss and ask your questions

Structure of the class

• Some macroeconomic approaches
  • Introduction: what are the issues
  • Models of development and underdevelopment
  • Policy Making and the Role of the State and market
• Microeconomic approaches
  • Poverty and inequality
  • Urbanization and rural-urban migration
  • Human Capital: Education and Health in economic development