Michael Kevane
300-D Kenna Hall
Office hours: MW 3:30-4:30 and by appt.

Purpose of the course: The term ‘emerging markets' is used to describe the economies of countries no longer closed off from the market forces that determine the allocation of investment capital. The world has globalized as these emerging markets are now affecting the trade and investments of the wealthy countries. The course will begin with a quick review of some of the major issues in globalization. Then we will carefully read a number of papers on the impact of emerging markets on the wealthy countries. These papers provide an opportunity to look at state-of-the-art methodologies in economics. We will follow with a series of papers on economic growth, from the role of mineral wealth to financial instability to opportunities for the world's poorest. The last third of the course will cover specific regions, such as China vs. India comparisons, the Middle East and Latin America, and some narrower topics, such as microenterprises and microcredit.

Requirements: This class will be more ‘seminar style' than most economics classes. The reading burden will be one or sometimes two papers per class. These readings are stimulating, but sometimes difficult. I expect the papers to be read before class, and I expect students to be prepared with questions and comments. Every class session will begin with an extended discussion of the paper. Students should be prepared to comment and respond to each other, and not just interact with me. During these discussions, questions may come up that no one has the answer to. Some of these will be handled as "Report back to class" assignments. Each student is required to do two of these reports, which will be short powerpoint presentations of five minutes each. The last thirty minutes of every class will be devoted to an introduction to the paper(s) for the next class. I will give some vocabulary and highlight the important issues addressed by each paper. I will hand out a few questions that should be answered to verify reading of the paper(s). These should be turned in at the beginning of the following class.

Individual project: You will first examine carefully the organizations and technologies previously nominated for the Tech Museum Awards, Technology Benefitting Humanity http://techawards.thetech.org/. You will then use Google and other search engines to find similar kinds of technologies being deployed in a poor, emerging market countries, looking especially for for-profit companies. You will do research on the organization and the technology. Is it novel? Is it having an impact? You will write a two page summary of the technology and its impact and why it fits the criteria of the Tech Museum awards. The papers will then be shared with the other class members, and discussed in a class session. If we find the technologies worthy of support, we will nominate them for the award.

Course grading

• 30% Final exam
  
• 20% Individual class discussion
  
• 10% "Report back to class"
  
• 20% Responses to questions on readings (due each class section, best 12 out of 16 grades will be considered)
  
• 20% Individual Project: Country, technology and company analysis (due Oct. 29)
• Course schedule and readings (all readings are available online)

Schedule

1. Sep 20 Introduction (special schedule due to Leavey lecture- we begin at 9:00pm)

2. Sep 22 Globalization
   a. Lecture by Amartya Sen at Santa Clara
   b. Lecture by P.K. Bardhan Globalization and Poverty

3. Sep 27 Effects of emerging markets on the U.S. labor market
   a. Lori G. Kletzer, Economics, UC-Santa Cruz. Trade-related Job Loss and Wage Insurance: A Synthetic Review. (Will visit campus Sept. 30)

4. Sep 29 A basic issue in economic policy: What is big government for and what does it do?
   a. Peter H. Lindert, Economics, UC-Davis. Does Big Government Hurt Economic Growth? (Will visit campus Oct. 14)
   b. Dani Rodrik, Why do more open economies have bigger governments?

5. Oct 4 Growth
   a. Engines of Growth and Africa's Economic Performance, Marcel Fafchamps,
   b. Geography, Demography, and Economic Growth in Africa David E. Bloom; Jeffrey D. Sachs; Paul Collier; with comments by Christopher Udry Brookings Papers on Economic Activity, Vol. 1998, No. 2. (1998), pp. 207-295.

6. Oct 6 The Dutch Disease
   a. Lessons from the Dutch Disease: Causes, Treatment, and Cures, Thorvaldur Gylfason
   
   
7. Oct 11 Growth and the natural resource curse
   a. Gavin Wright, Economics, Stanford University. Mineral Resources and Economic Development. (Will visit campus Oct. 28)

8. Oct 13 Sovereign debt and growth
   a. Debt Relief: What Do the Markets Think?
   b. Kris Mitchener, How are sovereign debtors punished?

9. Oct 18 Financial Instability
   a. Barry Eichengreen, Financial instability

10. Oct 20 C.K. Prahalad and Allen Hammond, What works serving the poor profitably?

11. Oct 25 Comparing India and China
    a. P.K. Bardhan, Crouching Tiger, Lumbering Elephant
    b. T.N. Srinivasan China and India

12. Oct 27 Comparing India and China
    a. Speech by C.K. Prahalad
    b. John Henley, Chasing the Dragon: Accounting for the Under Performance of India by Comparison with China In Attracting Foreign Direct Investment

13. Nov 1 Latin America
    a. Eduardo Fernández-Arias, Peter Montiel, Reform and Growth in Latin America: All Pain, No Gain?
    b. Aaron Tornell, Economic Crises and reform in Mexico

14. Nov 3 Discussion of technologies for Tech Award

15. Nov 8 Microcredit and microenterprises
    a. David mcKenzie and Chris Woodruff, Are microenterprises constrained by lack of capital?
    b. Paul Mosely The use of control groups to analyze impact of microfinance

16. Nov 10 Tech dinner

17. Nov 15 IMF and World Bank
    a. Nancy Birdsall, Why it matters who runs the IMF and World Bank
    b. William Easterly, What did adjustment adjust?

18. Nov 17 film Kevane away

19. Nov 29 Middle East economic growth
    a. Arab Development Report, summary
    b. Arab Development report, full text

20. Dec 1 Sudan's Oil sector
    a. Sudan-SPLA wealth sharing agreement full-text
    b. Michael Kevane, Comments on wealth sharing agreement

Dec 7, 8:00-10:00pm Final exam