ATENEO DE MANILA UNIVERSITY

LOYOLA SCHOOLS

COURSE SYLLABUS

COURSE NUMBER: EC 121

TITLE: DEVELOPMENT ECONOMICS
PRE-REQUISITE: EC 112
DEPARTMENT: Economics
SCHOOL: School of Social Sciences
SEMESTER AND SCHOOL YEAR: Second Semester, SY 2018-2019
NUMBER OF UNITS: 3
FACULTY: Dino Carlo A. Saplala, M.A.
SCHEDULE & VENUE: M-W-F 11:00am to 12:00pm, SEC-A123A (EC 121-E)
2:00pm to 3:00pm, B-307 (EC 121-I)
3:00pm to 4:00pm, CTC-404 (EC 121-J)

A. COURSE DESCRIPTION

The course aims to provide a rudimentary introduction to the fundamental social, economic, and
environmental problems and issues of developing countries, especially the Philippines, using concepts
and theories particular to their national and local structures and institutions. As the classes will be
comprised primarily of business majors, one of the course aims is to introduce the roles that can be
undertaken by the business sector in socio-economic development.

This course focuses on deepening students’ understanding of the processes of economic and social
development, as well as their knowledge of concepts and skills in addressing poverty, exclusion,
inequality, and vulnerability in the context of the Philippines. Theories and measures of development
will be tackled, and alternatives to addressing the challenge of poverty discussed. The course will draw
upon the concept of sustainable development as a framework for ensuring that problems related to
poverty and marginalization are addressed in ways that are socially-just and environmentally
sustainable.

B. LEARNING OUTCOMES

Upon completing the course, the student must be able to

Content
1. Differentiate the main theoretical approaches in analyzing development.
2. Expound their understanding of well-being and sustainability in relation to different concepts
and frameworks in understanding poverty and inequality.
3. Describe the methodologies in measuring development using available data sets of related
indicators.
4. Identify the major development issues in the Philippines and the relevance of these issues to
the macroeconomy in general and Philippine business in particular.

Skills
5. Identify development indicators, methodology of their measurement, and their uses and
limitations.
6. Apply specific development theories with use of long-term, cross-country data comparisons.
7. Write technical essays on development with use of data, figures, models, and graphs.
8. Assess the sectoral and welfare effects of various alternatives offered to address the different
socio-economic issues for the Philippines.

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Attitude
9. Acquire the discipline of applying theory in the analysis of a specific development condition.
10. Ensure respect for data and authoritative sources to support statements and arguments.
11. Inculcate an appreciation of the role of the business sector in economic development in the
country.
12. Critically evaluate the different programs and projects to address poverty and inequality issues
in the light of the principles of sustainable development and social justice.

C. COURSE OUTLINE
The course will begin with an introduction to Development Economics followed by four main
modules:

INTRODUCTION: Development Economics

What is the meaning of “development”? What are the different divergent views of development and
what are its impacts on the measurement of development and implementation of policy? We will discuss
here the key paradigms in development economics and their assumptions on the development process
of nations. We will examine the characteristics that define these underdeveloped countries vis-à-vis
developed countries, especially in the area of aspect of sustainable development. Lastly, we will
examine recent developments especially in terms of regional economic integration and the recent
backlash against globalization.

I. PARAMETERS: Measuring Poverty, Inequality, Well-being, and Human Security

The first module discusses poverty and inequality measurement tools and indicators. A key theme
of the module will be the need for poverty discussions to move beyond standard notions of monetary
progress and improvement for more holistic conceptions of well-being and empowerment.

Examples of measures include:

A. Economic Growth, Poverty, and Inequality
• GDP; Poverty measure: poverty line, poverty threshold, poverty incidence, other
measures
• Income inequality measure: Lorenz curve; Gini coefficient/ratio

B. Well-being, Empowerment, and Human Security

• Capabilities approach; Human Development Index
• Lack of voice; lack of representation; exclusion; marginalization
• Happiness and well-being; empowerment; Gross National Happiness
• Gender and empowerment; Gender Development Index
• Human Security as Freedom from Want and Freedom from Fear (1994 United Nations
Human Development Report)

II. PARADIGMS: Perspectives and Concepts of Development

The second module will deal with the different concepts of development, leading to the principles
of sustainable development. The module will be introduced with a review of the market economy using
a neoclassical perspective, and then problems of attaining equitable and sustainable outcomes in a
market economy will be discussed. Following this, institutionalist, structuralist, and Marxist critiques
of the neoclassical model will be provided. Finally, the course will provide a discussion of sustainable
development as a framework, the goals being forwarded by the United Nations, and the implications on
development in the country. The module will consist of the following sessions:

A. Classical and Neoclassical Perspectives: including a review of neoclassical economics and

modernization, and the issues and limitations in achieving equitable growth and poverty and
inequality reduction outcomes;

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 B. Alternative Perspectives: institutionalist, structuralist, and Marxist perspectives, including
critiques of existing neoclassical paradigm using ‘alternative’ paradigms, taking into account
the economic and political structures and institutions in a society and the class-based features
of the Philippine society;
C. Environment and Sustainable Development Framework: An overview of the Sustainable
Development Goals (SDGs), and their implications on the Philippines will be assessed. An
overview of theories relating to the environment and measures pertaining to sustainability such
as the Index of Sustainable Economic Welfare (ISEW), Genuine Progress Indicator (GPI),
Green GDP, and Happy Planet Index may also be given here;
D. Other Theories of Development (subject to time constraints)

III. INSTITUTIONS AND PRACTICES: Achieving Well-Being and Sustainable Development

The third module will provide students with an overview of the institutions and practices involved
in direct interventions for addressing poverty, inequality and unsustainability problems in the country,
which may range from national policies and programs to community-level solutions. For this purpose,
the sessions will also introduce students to basic analytical tools for systematically assessing local
sustainable development challenges and designing inclusive policy and program interventions to
address these challenges.

A. States and Markets: We will review the debate between states and markets in economic
development. The role of stakeholders and agents in the formulation of economic and social
reform policies will be discussed. Finally, the role of taxation and public finance may also be
reviewed here.
B. Finance and Business Sector Involvement in Socio-economic Development: We will discuss the
role of finance and the business sector in promoting socio-economic development and
sustainability in the country. We also assess the role of the different types of “alternative”
economic organizations, including but not limited to social enterprises, microfinance,
microinsurance, and cooperatives.
C. Introduction to Social Analysis Tools: (subject to time constraints) Aims to expose students to
basic social analysis tools to improve their fluency and critical appreciation of the sustainable
development practice. Such tools may include an overview of poverty and social impact
analysis, as well as different social assessment tools such as problem tree and solution tree
analysis.

IV. POLICIES AND ISSUES: Topics and Further Issues in Relation to Sustainable Development
The last module will provide an overview of further thematic issues related to sustainable
development, including but not exclusive to some of the following topics:
A. Population and Demography;
B. Urbanization and Rural-Urban Migration;
C. Agriculture and Rural Development;
D. Human Capital: Education and Health;
E. Other Issues (subject to time constraints)

The module will provide an overview of the relationship of the topics listed to poverty, inequality
and sustainable development. A common focus of the discussions will be on the role of specific policy
interventions in addressing the development and sustainability challenges in each field, and the growing
need for policy/institutional innovations for aligning established interventions in these areas to the
equity and sustainability objectives espoused by the United Nations SDGs framework.

INDICATIVE SCHEDULE:
An indicative schedule of topics and activities for each module above is listed below. Depending
on the pace of the classes during the semester, topics and activities may be added, re-arranged, or
removed as deemed necessary and with due consideration to the expected learning outcomes and
grading system. Students may also be assigned to study certain topics and readings on their own.

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 Week Day Tentative Topics and Activities
1 Jan. 21 Course Syllabus
23 INTRODUCTION
25 2nd Semester Faculty Day
2 Jan. 28 PARAMETERS: Monetary Approach, Poverty and Inequality I
30 PARAMETERS: Development as Freedom (reading - Sen)
Feb. 1 PARAMETERS: HDI and Capabilities Approach
3 Feb. 4 President’s Day
6 PARAMETERS: Poverty and Inequality II (Social Exclusion)
8 PARAMETERS: Subjective Well-Being (reading - Beja)
4 Feb. 11 PARAMETERS: Human Security (reading – Aldaba/Saplala)
13 PARAMETERS: Other Measures / Review / Buffer Day
15 PARADIGMS: Review of Growth Theories, Neoclassical Economics
5 Feb. 18 PARADIGMS: Mystery of Capital (reading – De Soto)
20 Review / buffer day
22 LONG TEST 1
6 Feb. 25 EDSA 1986 Anniversary
27 PARADIGMS: History and Institutions (reading – Sokoloff/Engerman)
Mar. 1 PARADIGMS: Dualism (reading - Venida)
7 Mar. 4 PARADIGMS: Marxist and Dependency Theories I
6 PARADIGMS: Marxist and Dependency Theories II
8 PARADIGMS: Environment and Sustainable Development I
8 Mar. 11 PARADIGMS: Environment and Sustainable Development II (reading –
Giddings, et al. and case study)
13 INSTITUTIONS: States and Markets I
15 INSTITUTIONS: States and Markets II
9 Mar. 18 INSTITUTIONS: Finance and Development I
20 INSTITUTIONS: Finance and Development II, “alternative” organizations
22 INSTITUTIONS: Other Social Analysis Tools (if time permits)
10 Mar. 25 LONG TEST 2
27 POLICIES: Population and Demography
29 POLICIES: Urbanization and Migration I (if time permits, including at least one
related reading assignment under “Policies and Issues” below)
11 Apr. 1 POLICIES: Urbanization and Migration II
3 POLICIES: Agriculture and Rural Development
5 POLICIES: Human Capital
12 Apr. 8 Group Reports
13 Apr. 15 HOLY WEEK (April 14 to 21, 2019)
14 Apr. 22 Wrap-up / Buffer Day / Summary
24 GRADUATING STUDENTS’ FINAL EXAMS (April 24 to 26, 2019)

D. REQUIRED READINGS

1. Main References
• Ortigas, Carmela and Mary Racelis (eds). 2015. Overcoming Poverty: Multi-disciplinary
Perspectives, Principles and Practices. Published for Ateneo de Zamboanga University by
C&E Publishing, Inc.
• Todaro, Michael P. and Stephen C. Smith. 2015. Economic Development. Addison-Wesley,
11th or 12th edition.
• United Nations. Sustainable Development Goals.
http://www.un.org/sustainabledevelopment/sustainable-development-goals/

2. Introduction / Parameters
• Sen, Amartya. “What is Development About?” in Frontiers of Development Economics.

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3. Parameters
• Aldaba, Fernando T. and Dino Carlo A. Saplala. 2016. "Human Security in East and Southeast
Asia", Keio Mediacom Working Paper No. 5. Institute for Journalism, Media and
Communication Studies, Keio University.
• Beja, Edsel Jr. 2015. “Measuring economic ill-being using objective and subjective indicators:
evidence for the Philippines.” International Review of Applied Economics.
• Laderchi, Caterina Ruggeri, Ruhi Saith and Frances Stewart. 2003. “Does it Matter that we do
not Agree on the Definition of Poverty? A Comparison of Four Approaches.” Oxford
Development Studies.
• United Nations Development Programme. 2018. Human Development Report (Technical
notes). http://hdr.undp.org/sites/default/files/hdr2018_technical_notes.pdf

4. Paradigms
• De Soto, Hernando. 2000. The Mystery of Capital: Why Capitalism Triumphs in the West and
Fails Everywhere Else. New York. (selected chapters)
• Giddings, Bob, Bill Hopwood, and Geoff O’Brien. 2002. "Environment, Economy and Society:
Fitting Them Together Into Sustainable Development." Sustainable Development 10: 187-196.
• Markowitz, Linda and Cathy Santanello. "Ecotourism: Who Benefits" (case study)
• Sokoloff, Kenneth L., and Stanley L. Engerman. 2000. "History Lessons: Institutions, Factors
Endowments, and Paths of Development in the New World." The Journal of Economic
Perspectives.
• Venida, Victor S. 2000. "The Economic Theory of Globalization." Philippine Studies 48(4):
488-522.

5. Institutions and Practices (subject to time constraints)

• Bautista, Cristina M., et. al. 2017. Economics and Society. 2nd edition. Quezon City: Ateneo
de Manila University Press. (Chapters 14, 15, and 20)
• Lopez, Mario Antonio G. 2015. “Poverty Alleviation, Livelihood Creation, and Wealth
Sharing: A Development Management Perspective.” In Ortigas, Carmela and Mary Racelis
(eds) Overcoming Poverty: Multi-disciplinary Perspectives, Principles and Practices, edited
by Ortigas and Racelis. (chapter 3)
• The Economist. “What is Sustainable Finance?” https://www.economist.com/the-economist-
explains/2018/04/17/what-is-sustainable-finance
• UK Cabinet Office. “A Guide to Social Return on Investment.”
• Additional articles on financial development and sustainable finance which may be assigned
and posted on the class Facebook group.

6. Policies and Issues (subject to time constraints)

• Bautista, Cristina M., et. al. 2017. Economics and Society. 2nd edition. Quezon City: Ateneo
de Manila University Press. (Chapter 21)
• East-West Center. “Population and Globalization.”
https://www.eastwestcenter.org/sites/default/files/private/p&p064.pdf
• Porio, Emma. 2016. “Prosperity and Inequality in Metro Manila: Reflections on Housing the
Poor, Climate Risk, and Governance of Cities.” In Banpasirichote, Wungaeo C., Rehbein B.,
Wun'gaeo S. (eds) Globalization and Democracy in Southeast Asia.

E. SUGGESTED READINGS
7. The course may further utilize the following as secondary texts and references:
• Clarete, Ramon, Emmanuel Esguerra and Hal Hill. 2018. The Philippine Economy: No Longer
the Asian Exception? Singapore: ISEAS- Yusof Ishak Institute.
• Dowling, J. Malcolm. and Ma. Rebecca Valenzuela. 2010. Economic Development in Asia. 2nd
edition, Cengage Learning Pte. Asia.

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 • Parker, Martin, George Cheney, Valerie Fournier and Chris Land (2016). The Routledge
Companion to Alternative Economic Organizations. Routledge: Abingdon, OX, United
Kingdom. Chapters 3, 5, 11 and 17.
• Perkins, Dwight H., Steven Radelet and David L. Lindauer. Economics of Development. 6th or
7th edition, W.W. Norton and Company, Inc.
• Sachs, Jeffrey. 2015. The Age of Sustainable Development. New York: Columbia University
Press.

8. Students are also encouraged to read other books, articles, newspaper columns, blogs, and websites
related to topics on development and economic issues, such as:
• Acemoglu, Daron and James Robinson. 2012. Why Nations Fail? The Origins of Power,
Prosperity and Poverty. New York: Crown Publishing.
• Habito, Cielito F. 2012. No Free Lunch: Economics in Bite-sized Pieces. Makati City:
Philippine Daily Inquirer.
• United Nations Research Institute for Social Development. 2016. Policy Innovations for
Transformative Change: UNRISD 2016 Flagship Report. Geneva: UNRISD.
• Dani Rodrik's weblog: Unconventional thoughts on economic development and globalization.
http://rodrik.typepad.com/
• National Economic and Development Authority (NEDA). 2016. Statement on Full Year 2015
Official Poverty Statistics as delivered by Dir. Reynaldo R. Cancio.
http://www.neda.gov.ph/2016/10/27/statement-on-full-year-2015-official-poverty-statistics-
as-delivered-by-dir-reynaldo-r-cancio-of-neda/.
• Additional articles or links which may be assigned and posted on the class Facebook group.

F. ASSESSMENT METHODS

Assessment Weight Expected learning outcomes

Methods (%) 1 2 3 4 5 6 7 8 9 10 11 12
1. Long Test 1 20 x x x x x x x x
2. Long Test 2 20 x x x x x x x
3. Final Exam 20 x x x x x x x x x x x x
4. Group Paper 25 x x x x x x x
5. Class Participation 15 x x x x x x x x x

An overview of each course requirement is given below (further guidelines will be given during the
semester)
1. Two (2) long examinations and a final exam (20 percent each) which may consist of any of
the following: definition of terms, essay, case analysis, and application of development
concepts. The final exam is comprehensive. One out of the three exams may include a take-
home paper component, provided that both LT1 and LT2 include in-class components.
2. A group paper (25 percent) on the role of alternative economic organizations and the business
sector in socio-economic development. Further guidelines will be given within the first two
weeks of the semester.
3. Class participation (15 percent) includes grades given for classroom recitation and grades for
other quizzes/one-page papers/activities assigned in class.

G. GRADING SYSTEM

*Grades will not be rounded off.

A 92 – 100 Excellent C 70 – 76 Fair
B+ 87 – 91 Very Good D 60 – 69 Passing
B 82 – 86 Good F Below 60
C+ 77 – 81 Satisfactory

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H. CLASSROOM POLICIES

Major Exams (Long Tests and Final Exam)

1. Long Tests may be scheduled during the original class schedule or at a different two-hour
plenary class depending on the availability of all sections (EC 121 E, I, and J). The Economics
Department and other offices will be informed as required if a two-hour exam is needed.
2. Exam dates may be changed depending on the progress of the class. Final LT1 and LT2
schedules will be announced not later than two weeks before the exams unless class
cancellations occur. If class is cancelled on exam day, the scheduled exam will be moved to the
next class day (unless announced otherwise).
3. Unexcused absences from any course requirement automatically merits a grade of zero (not
just F). Only students with university-approved excuses, illness, or valid emergencies with
documentation shall be allowed to take make-up long exams or a make-up final exam.
4. Make-up long and final exams will be in the Economics Department only during office hours.
No make-up is given for minor requirements.
5. There are no exemptions from the final exam. Unless if the class average falls below C+, there
will be no curving and no further bonus points given to major exams.

Class Participation and Other Policies on Grades

6. Late take-home requirements, if any, will not be accepted.
7. Grades given for any course requirement can be appealed until the next meeting following the
return of the course requirement. However, appeals with no sufficient basis will not be
entertained. Afterwards, all grades are final unless encoding errors are detected.
8. The default score for class recitation is the tentative class standing based on the other course
requirements. I reserve the right to increase or decrease this default class participation grade
based on student behavior and other reasons. Attendance shall not be taken against the student
except in cases of overcuts (a grade of W will be given according to university rules).
9. No extra work will be given to a student outside of the course requirements given for all other
students.

Attendance and Behavior

10. Students are required to join the class Facebook group and to check this regularly as important
files and announcements will be given through it.
11. Attendance will be checked at any time during class. A maximum of nine cuts or absences is
allowed. Failure to have your attendance checked as a result of tardiness counts as a cut. Every
evidence available (e.g. failure to claim a course requirement returned in class) may be
considered in the checking of attendance.
12. Cellular phones are to be turned off or placed in silent mode while in class.
13. Any form of disruptive and uncooperative behavior may be a ground to send students out of the
classroom and be marked absent.
14. Enrollment in this class means the students agrees to abide by the contents of this syllabus, the
LS Student Handbook, and the LS Code to Academic Integrity.

I. CONSULTATION HOURS

I am available for consultation at the Economics Department (4/F Ricardo & Dr. Rosita Leong Hall)
during the following schedule: Mondays, Wednesdays, and Fridays, 1:00pm to 2:00pm

Students are encouraged to request for appointments prior to consultation at the indicated schedule and
at other times as they find necessary. All consultations will be held only during office hours of the
Economics Department. For larger group consultations (e.g. more than 4 students), I prefer to be
informed first prior to your arrival to be able to check that sufficient space is available at the department.

I may be contacted through any of the following: dino.saplala@obf.ateneo.edu or dsaplala@ateneo.edu