MAKERERE UNIVERSITY BUSINESS SCHOOL
FACULTY OF ECONOMICS, ENERGY & MANAGEMENT SCIENCE
DEPARTMENT OF ECONOMICS
SEMESTER TWO, ACADEMIC YEAR 2020/21
COURSE OUTLINE
PROGRAMME: BACHELOR OF ARTS IN ECONOMICS
COURSE NAME: PRINCIPLES OF DEVELOPMENT ECONOMICS
COURSE CODE: FIN 1201
YEAR OF STUDY: ONE
CREDIT UNITS: THREE
Instructors
(1) Willy Turyahikayo wturyahikayo@[Link]
(2) Darious Mugabe. dmugabe@[Link]
1.0 Course Brief
Economic development is the process of gradual improvement in the material well-being
of individuals. At the macro level, development economics studies why some countries
have high standards of living, while others do not. At the micro level, development
economics studies the functioning of markets in low income countries, with the ultimate
goal of addressing market failures and lifting individuals out of poverty.
This course will offer a brief overview of selected topics in growth and development
economics at introductory level. It introduces students to working concepts in
development economics and to some modern approaches to the theory and empirical
findings of economic growth and development.
2.0 Course Objective
The course intends to highlight efforts that seek to improve the economic well-being and
quality of life for a community. It seeks to introduce to students some of the key concepts
in development economics that will provide a good foundation for the detailed analysis of
development economics in Year Three. Specifically, the course is intended to:
Introduce to students the various topics in development economics.
Discuss key issues in the process of economic development.
3.0 Learning Outcomes
Students who successfully complete the course will have a good understanding of the
concepts in development economics that are a prerequisite for the advanced development
economics offered in year three. At the end of this course, and having completed the
essential readings and activities, the students should be able to:
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and Training in the region."
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Outline the main theories and concepts in development economics.
Describe the nature and meaning of economic development or under
development.
Explain the major development problems, choices and opportunities currently
faced by developing countries.
Select, assess and justify specific policy choices that developing countries might
make to achieve their economic and social objectives.
4.0 Course Assessment
Two coursework assessments 30%
Final Examination 70%
Total 100%
5.0 Mode of Teaching
A variety of delivery methods will be used comprising lectures, in-class and group
discussions coupled with take-home assignments.
6.0 Reading List
Text Book:
Ray, D. (1998), Development economics, Princeton University Press
Other references:
Roland G. (2014), Development Economics, Pearson Education, Inc.
Todaro P. Michael and Stephen C. Smith (2009), Economic Development, 10th Edition,
Pearson.
Jhingan M.L (2014). The economics of development and planning, 40th edition
Any other relevant reading material as may be given to you from time to time by the
facilitators
7.0 Course Content
Topic Facilitator
Topic Week Content & Reading Material
No.
Economic Growth and Development Darious
Why study Development Economics
The concept of Value Judgment
The Concept of Per Capita Income
7.1 Introduction 1&2
Goals of Economic Development
Objectives of Development
Measuring development
Characteristics of Developing Countries
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and Training in the region."
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1. Ray D. (1998), Chap 1, 2 & 3
2. Todaro & Smith (2009) Chap 1 & 2
3. Roland G. (2014) Chap 1
Linear models Darious
Rostow’s stages of growth
Harrod-Domar growth model
Structural-Change models
Lewis’s model of economic development
Theories of
7.2 3&4 Structural change & development
Development
strategies
Reading Material
1. Ray D. (1998), Chap 3 & 4
2. Todaro & Smith (2009), Chap 4
First Coursework
Basic concepts Willy
Determinants of population growth
The Malthusian model
Population Modern theories of population growth
Growth and Effects of population growth
7.3
Economic
Development 10 & Reading Material
11 Todaro and Smith (2009), chap 7
Ray D. (1998), Chap 9
Roland (2014), Chap 3
Concepts in poverty Willy
Characteristics of the poor
Voices of the poor
Causes of poverty
Measures of poverty
Common solutions to poverty
Income distribution
Poverty and Size vs. Functional distribution of
12 &
7.4 Economic income
13
Inequality The Lorenz curve and Gini-coefficient
Causes of income inequality
Policies to improve income distribution
Reading Material
Ray D. (1998), Chap 6,7 & 8
Todaro and Smith (2009), chap 6
Roland (2014), Chap 2
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and Training in the region."
MUBS Mission: “To enable the future of clients through creation and provision of
knowledge." Page 3
Second Coursework
Agriculture & development Darious
Rural – urban migration
Formal & informal sectors
Harris-Todaro model
Rural – urban
7.5
interaction Reading Material
Ray D. (1998), Chap 10
Todaro and Smith (2009), chap 8
Roland (2014), Chap 12
Role of education Darious
Health and development
Human Capital Child labour
7.6 Reading Material
& Development
Todaro and Smith (2009), chap 9
Roland (2014), Chap 16 & 17
Rural credit markets Willy
Theories of credit markets
Credit constraints in LDCs
Credit Markets Role of Microfinance
7.7 and
Development Reading Material
Ray D. (1998), Chap 14
Todaro and Smith (2009), chap 8
Roland (2014), Chap 15
Role of institutions & property rights Willy
Corruption and development
Conflict and development
Culture and development
New research Geography and development
7.8
in Development
Reading Material
Roland (2014), Chap 7, 9, 10, 11, 12,
13, 19 & 20
Acemoglu et al (2012)
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and Training in the region."
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knowledge." Page 4
