Economics of Less Developed Countries

Course Overview

Building on the classic models of economic development covered in the first module, module 2 uses contemporary models of economic development to investigate why some countries are rich and others are poor. The inherent challenges of development policymaking will be considered, before the success and failure of trade, finance and aid policies in less developed countries is examined. The central role of macro and micro institutions in economic development is then considered in detail. The module concludes with a discussion of the key challenge of environmental sustainability.

The module outline is as follows:

• Theories of Economic Development

• Policymaking: What Role for the State in development?

• The Role of Institutions in Development

• Aid: Does it work?

• Trade: Engine of growth or obstacle to development?

• Domestic and International Finance: Opportunities and instability

• Economic Growth and Environmental Sustainability