Excerpts

APPROACH Textbooks in economic development have a great deal in common. Still, each author brings a different style, approach, organization, and sense of what is important. Economic Development: Theory and Practice for a Divided World has grown out of the economic development course that I have taught, off and on, for over 30 years. When I was introduced to economic development as a student, economic planning was given much more emphasis than it is today. Government responsibility was deemed essential in the absence of viable markets in many countries, and the serious deficiencies of many government solutions were not yet apparent. On the other hand, health, education, and environmental issues were not considered to be very important. As the concerns of economists have broadened over the last three decades, so has the coverage of courses in economic development. My approach highlights three key ideas: Divided World: The title of the book includes the phrase "a divided world." This division has been manifested over the last four decades in the stages of development and the approaches to development policy. There are still wide gaps between rich and poor countries and between market-oriented and state-oriented approaches. Nevertheless, many countries are neither rich nor poor, and the line between market and state orientation is often blurred. I address the roles of market and government in each chapter. Controversy: One element I have often found muted in other texts is a sense of the controversy that has marked this field. Accepted answers change from one decade to the next, as do some of the key questions. It is important to understand how debates have led to current views in different areas of economic theory and policy, so I have included more background on these debates. Theory and Practice: Finally, I have combined theory and practice in a way that gives students a practical understanding of what the theoretical fuss is all about. Practical application is provided through numerous cases and Development Spotlight boxes in each chapter. AUDIENCE Economic Development: Theory and Practice for a Divided World is aimed at students taking a first course in economic development. It requires only a basic knowledge of economics--students need to have taken only introductory micro- and macroeconomics courses. Some concepts are introduced that go a bit beyond what is normally given at the introductory level. This approach allows, even encourages, students who may not be economics majors to become familiar with the subject. Students whose interest may be in political science, international studies, sociology, anthropology, and related areas will find the text interesting and accessible. ORGANIZATION The book is divided into five parts. Part I, "Introduction to Economic Development," consists of three chapters. Chapter 1, "The Idea of Economic Development," introduces students to the subject by raising questions of what we mean by development. Chapter 2, "Measuring Economic Development," describes problems of measuring the concept. Chapter 3, "The Evolution of Development Thought," shows how the economics profession has changed its approaches over the years. Because anthropologists, political scientists, and others have a great deal to say about these issues, it is important to stake out the realm of economics and to admit that the boundaries are often fuzzy. Part II, "Resources for Development," discusses the "raw materials" of, or inputs into, economic development: capital, resources, and labor. Chapter 4, "Financial Resources for Development," discusses the role of saving and investment in economic development, while Chapter 5, "Natural Building Blocks of Development: Resources and the Environment," discusses natural resources and the environment. Chapter 6, "Population Growth and Migration," and Chapter 7, "Human Capital: Health and Education," address more specifically the human element: population growth and migration, and enhancing human capital through improved health and education. Part III, "Productive Sectors and the State," first addresses the two main productive sectors in Chapter 8, "The Key Role of Agriculture in Development," and Chapter 9, "Industry, Technology, and Employment." Part III concludes with two chapters on the role of government. While governments, and their policies, are evident throughout the book, it is essential to provide a general framework for the debate over what government can do and how its performance can be improved. Chapter 10, "The Ambiguous Role of the State in Development," addresses these general questions, while Chapter 11, "Macroeconomic Policy, Inflation, and Stabilization," considers macroeconomic policy specifically. Part IV, "The International Economics of Development," surveys the international economic environment of development. It begins with "Foreign Trade and Development Strategy," in Chapter 12, then "Foreign Aid and Direct Investment," in Chapter 13. Chapter 14, "Debt and Adjustment," addresses international debt and the problem of restructuring troubled economies, which bedeviled much of Latin America in the 1980s and weighs heavily on many African economies today. Chapter 15, "Global Capital Markets and the East Asian Development Model," follows up with the newer problem of adjusting to short-term capital flows, especially as it struck the East Asian economies in the late 1990s. Part V, "Conclusions," consists of Chapter 16, "Lessons Learned and Open Questions." This final chapter takes stock of the changes in, and contributions of, economic development as a discipline and sums up the lessons of development policy, particularly as it relates to the role of government. KEY FEATURES Each chapter relies on a set of common features to bring the narrative into focus and to apply the concepts of the chapter. From one to five country-specific cases in each chapter help to provide real-world examples of important issues. A map located on the inside of the front and back covers guides the student to the location of each country. A series of "Development Spotlight" boxes brings additional illumination to key points. Graphs are presented as figures to clarify key theoretical issues. Crucial data about developing countries are presented in tables. Key terms appear in bold the first time they are used, are listed at the end of each chapter, and are compiled in a glossary at the end of the book. "Related Internet Resources" at the end of each chapter guide the student to additional information on the Web. A set of "Questions for Review" also appears at the end of each chapter and includes questions specifically aimed at the cases. Extensive endnotes lead students to further readings in many areas. SUPPLEMENTAL PACKAGE The Instructor's Manual provides the following key features for each chapter: chapter summary, key objectives, suggestions for lectures, assignments, and multiple choice and short essay exam questions. The Web site for the book, www.prenhall.com/lynn , contains a downloadable version of the Instructor's Manual, a full bibliography, and additional resources. Excerpted from Economic Development: Theory and Practice for a Divided World by Stuart R. Lynn All rights reserved by the original copyright owners. Excerpts are provided for display purposes only and may not be reproduced, reprinted or distributed without the written permission of the publisher.