Post on 23-Jun-2018
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Course Information
Course Code ECON 6031
Course Title Caribbean Economic Development
Course Discipline M.Sc. Economics
Units of Credit 3
Pre-requisite First degree in Economics
Semester of Offering Semester I, 2017/2018
Course Lecturers Dr. Roger Hosein (roger.hosein@sta.uwi.edu)
Lecture Schedule
COURSE DESCRIPTION
The main objective of this course is to ‘interrogate’ the literature on the economics of
development and critically review its applicability to the Caribbean-specific case. The
rationale is that at this stage of its development the Caribbean is characterized by universal
economics challenges as well as other challenges which are specific to the region.
PURPOSE OF THE COURSE
Students are expected to become familiar with the theories associated with development
and be able to apply these to the Caribbean critically. Additionally students would become
more aware of the various inter-linkages among the economies internationally and
regionally.
The course exists so that students can better understand the fundamentals of what
development is about particularly for small open economies like those in the Caribbean.
This course will further delve into how small open economies can pursue sustained
development.
INSTRUCTOR INFORMATION
LECTURER: Dr. Roger Hosein, Dr. Daren Conrad
LECTURER’s EMAIL:Roger.Hosein@sta.uwi.edu, Daren.Conrad@sta.uwi.edu
LECTURER’s PHONE CONTACT:662-2002 EXT 83041
Office hours- To be announced on first day of lectures
Communication policy – Please contact lecturer during assigned office hours
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LETTER TO THE STUDENT
Dear Students,
Caribbean Economic Development is a course that will allow you to get a better
understanding of issues of sustainable development and how they relate to economic
prospects of small open economies like those of CARICOM.
This course is going to be very interactive and it will be to your benefit to participate during
lectures as your comments and questions will guide the sessions and make the class more
interesting. Development issues relate to every day issues for all citizens of a country and
the goal of this course is for students to better appreciate how important efficient policy
planning is to propelling growth and development for every country.
Note that your success with the material depends on you. Welcome to Caribbean Economic
Development. I look forward to your participation and engagement.
GOALS / AIMS
To equip students with an adequate set of tools; theoretical and practical; to understand the
issues in sustainable development
To provide students pursuing the Msc. Economics degree with the ability to conduct
in-depth analysis of development issues affecting CARICOM.
To provide students wishing to further their academic careers in Development
Economics with the analytical skills to have a good command of major topics in
the field.
To broaden the career potential for graduates who intend to pursue planning based
careers as economic analysts/consultants within the Caribbean or elsewhere.
GENERAL OBJECTIVES
To simplify development theory into practical approaches to policy making.
To enable the students to understand sustainable development issues within
CARICOM
To enable the students to have a better understanding of the concept of and need
for local economic development.
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LEARNING OUTCOMES
Students who successfully complete this course will have, (by means of identification and
interpretation), acquired a grasp of:
the range of definitions and approaches to development;
how these approaches are converted to measurable indicators; and
of key policy issues which must be considered by small open developing economies
such as those in the region.
Finally, the students will also garner a detailed understanding of the specificities of the
development challenges.
ASSESSMENT
The course will be assessed via a project which will account for 40% of the marks with a
final examination contributing the remaining 60%. The project will draw on the material
covered by the course and would require application of said material to one or more specific
challenges of development facing Caribbean countries. The final examination also will
reflect a similar approach.
COURSEWORK ASSIGNMENT
1. Outline and discuss any five (5) reasons why the T&T economy has not been
successful at diversifying into the non-energy sector? What can be done from an
institutional perspective to get the diversification process going in the T&T
economy case?
2. Describe the potential role of China in the economic development of the Caribbean.
In this regard calculate the trade intensity of St Lucia, Guyana, T&T and Suriname
with China. Offer 5 detailed policy suggestions to the CARICOM Secretariat as to
how the region can deepen its ties with the Chinese economy.
3. Consider the debt to GDP ratios of T&T, Guyana and Suriname. Explain how the
debt to GDP ratio is linked to the import cover ratio, the fiscal balance and the
structure of trade? For the T&T economy offer 5 ways by which the state can
improve on the current account balance, in the context of a declining stock of oil
and natural gas reserves.
4. As an emerging energy producer, Guyana must take stock of its various governance
indicators. Provide a detailed discussion of the same. Against this backdrop
describe an optimal government expenditure strategy for Guyana in the context of
its pending energy sector boom.
5. What is meant by RCA and of what relevance is this index to policy makers in
SIDS. Describe how the Harmonic Mass Index can be used to calculate the extent
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of change in a country’s pattern of trade? What is a transition probability matrix?
How is it linked to the Harmonic Mass Index? Look at the TPM for Suriname,
Trinidad and Tobago and Guyana. What can you say about persistence and the
evolving structure of comparative advantage with the EU as compared to the rest
of the world.
6. Describe the Citizenship by Investment Program (CIPs) which exists in St Lucia?
Outline why the CIP may be at risk because of a race to the bottom amongst the
OECS countries.
7. Using the 2 sector model developed by Corden and Neary as a point of reference,
outline the need for deliberately targeted CSR activity in the non-energy sector of
resource abundant Caribbean economies.
8. What is the EODB index and how is it related to the corruption perception index
and the Global Competitive Index (focus on 2 snapshot years, 2005 and 2016). For
Guyana, T&T and Suriname provide a detailed evaluation of each economy’s
distance to frontier as relates to each subcomponent of the EODB index. Provide
policy guidelines to these economies using information from the best ranked
CARICOM economy, in each subcomponent grouping.
9. T&T and Barbados recently changed their tertiary level education funding regimes.
Why were the funding regimes changed in these economies? Briefly describe the
tertiary level education funding regimes of Guyana, T&T and Jamaica. Drawing
from the international best practice experience of any 2 other SIDS, provide policy
advice as to how tertiary level education could be better financed in these small
economies.
10. What is Okun’s Law? Describe the various permutations of the law. Is Okun’s
Law applicable to the T&T economy in the context of the voracity effect? Of what
policy relevance is the experience of Okun’s Law in T&T for the Guyanese
economy?
11. Describe the intensive and extensive margins of trade with the world for T&T,
Suriname and Guyana. How did the intensive and extensive margin of trade change
in T&T and what was the impact of the appreciating REER in T&T on both margins
over the period 2000-2016.
12. Describe the governance issues which face the state owned enterprises sector in any
selected Caribbean resource based economy. Discuss 5 ways the efficiency of
monitoring and evaluating SOE can be improved.
13. Provide a detailed overview of the economic contribution of a community based
localized economic intervention, such as a Fish Fry on a selected CARICOM
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economy. What lessons can be drawn from the chosen case study for the T&T
economy?
14. In the context of a resource based industrialization taking place in Guyana, what
are some strategies that the Guyanese government can put in place in order to
mitigate against the Dutch Disease impact on its agriculture sector.
STUDENT PARTICIPATION IN PLANNED DEPARTMENTAL ACTIVITIES
FOR 2017/2018
1. Attendance at the Department’s Post Budget Forums
2. Attendance at the Conference on the Economy 2017 - October 2017.
REQUIRED READING
Demas, William G. The Economics of Development in Small Countries: with special
reference to the Caribbean. Kingston, Jamaica: UWI Press: 2009
Pantin, Dennis: Reader in Caribbean Economy. Randle Publishers. 2005
Hunte, Diana: Economic Theories of Development: An analysis of Competing Paradigms.
New York: Harvester Wheatsheaf. 1989
Martinussen, John: Society, State and Market: A Guide to Competing Theories of
Development. Zed Books. 2004.
Levitt, Kari: Reclaiming Development: Independent Thought and Caribbean Community.
Randle Publishers. 2006
DETAILED READINGS BY SECTIONS OF THE COURSE
1. Meaning and Measurement of Development
1. Amartya Sen: Development: Which Way Now? Economic Journal. Dec. 1983
2. --------------------Development as Freedom. Oxford University Press.1999.Chs1-6
3. Dudley Seers: What are we Trying to Measure? Journal of Development Studies.
8(3): 21-36. 1972
4. -----------------The Meaning of Development. International Development Review.
Vol.11. No.4, 1969 or in IDS Communication Series No. 44.
5. Milorad Kovacevic, 2011. Review of HDI Critiques and Potential
Improvements.
hdr.undp.org/en/reports/global/hdr2010/papers/HDRP_2010_33.pdf
6. UNDP: Human Development Report, latest year available
7. Morse, Stephen. For better or for worse, til the human development index do us
part. Ecological Economics 45 (2003) 281_/296
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8. Jeni Klugman, Francisco Rodríguez and Hyung-Jin Choi. The HDI 2010: New
Controversies, Old Critiques. April 2011. Available from:
hdr.undp.org/en/reports/global/hdr2011/papers/HDRP_2011_01.pdf
9. DasGupta, Partha and Weale, Martin. On Measuring the Quality of Life.
World Development, Vol 20, No. 1 pp 119-131, 1992.
10. Government of Trinidad and Tobago and Central Statistical Office (CSO).
2012. Human Development Atlas.
11. Gerald M. Meier and Joseph E. Stiglitz: Frontiers of Development Economics:
The Future in Perspective. World Bank and Oxford University Press. 2000.
2. ‘Theoretico-historical’ perspective
1. J.L. Anderson: Explaining Long-Term Economic Change. Cambridge University
Press.1997;
2. H.N. Ardnt: Economic Development: A Semantic History. Economic
Development and Cultural Change. Vol. 29.1981. p.457-467
3. Lant Pritchett. "Understanding Patterns of Economic Growth: Searching for
Hills among Plateaus, Mountains, and Plains," World Bank Economic Review,
Oxford University Press, vol. 14(2), pages 221-50, May. 2000
4. World Bank Economic Review. Vol. 15. No.2. 2001: Papers by Easterly and
Levine and Brock and Durlauf as well as comments on both of these papers.
5. John Martinussen: Society, State and Market: A Guide to Competing Theories
of Development, London: Zed Books. 1997. Chapters 1-3.
6. Immanuel Wallerstein: The Capitalist World Economy. Cambridge Univ.
Press. 1979. Part 1- The inequalities of core and periphery (p.1-164).
7. Ha-Joon Chang: Kicking Away the Ladder: Development Strategy in
Historical Perspective. Anthem Press.2002.
3. From Modernisation to Dependence Theories: The post World War Two Debate
and Development policy practice to the 1970s;
1. Diana Hunte: Economic Theories of Development: An analysis of Competing
Paradigms. New York: Harvester Wheatsheaf. 1989
2. John Martinussen: Society, State and Market: A Guide to Competing Theories
of Development, London: Zed Books. 1997. Chapters 4-9
3. Kari Levitt and S. Wyeth: A Balanced View of Development Economics: An
Annotated Bibliography. (mimeo)
4. World Development, Special Issue: The Methodological Foundations of
Development Economics. Vol.14. No.2. Feb. 1986
4. Economic Liberalisation, Foreign Capital and Globalisation
1. Anne Krueger: Government Failures in Development. Journal of Economic
Perspectives, Vol. No. No.3. 1990.
2. Deepak Lall: The Poverty of ‘Development Economics.”. The Institute of
Economic Affairs, London. 1984.
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3. John Martinussen: Society, State and Market: A Guide to Competing Theories
of Development, London: Zed Books. 1997. Market Chapter 18
4. Lance Taylor: Varieties of Stabilisation Experiences: Towards Sensible
Macro-Economics in the Third World. Oxford. Clarendon Press, 1990.
5. ECLAC: (Neo-Liberal) Economic Reforms in Latin America. 2000.
6. Barry Eichengreen et al. Liberalising Capital Movements: Some Analytical
Issues. IMF. Economic Issues No.17. 1999
7. Foreign Policy (Fall, 1999): articles by Beddoes (on the International Financial
System); Enriquez (Too many Flags?); Hausmann (Should there by Five
Currencies or one hundred and five?);Sachs and Larrian (Why Dollarization
is more straitjacket than salvation)
8. Andrew Krieger: The Money Bazaar: Inside the Trillion Dollar World of
Currency Trading. Times Books. 1992 (selective reading).
9. R. Hosein and J. Khadan. Trade, Economic and Welfare impacts of the
CARICOM-Canada Free Trade Agreement. MPRA Paper. 2014
10. O. Groot and M. Ludena. Foreign direct investment in the Caribbean: Trends,
determinants and policies. UNECLAC Studies and Perspectives. February 2014.
4b. The 21st century Debate on Globalisation:
1. Kimmo Kiljunen: Towards a Theory of the International Division of Industrial
Labour. World Development. Vol. 17. No.1. 1989.p.109-138
2. Deepak Nayyar: Globalization: The past in our present. Third World Economics.
Issue No. 168. 1-15 Sept. 1997
3. Raphael Kaplinsky: Globalisation, Industrialisation and Sustainable Growth: The
Pursuit of the Nth Rent. IDS DP. 365, June, 1998
4. World Bank Research Observer. Vol. 15. No. 2. Aug. 2000 – papers by
Dornbusch et al; Williamson and Srinivasan.
5. IMF: Reforming the Financial Architecture. Finance and Development Sept. 1999
6. Chakravarthi Raghavan: New architecture or wrong diagnosis? THIRD WORLD
ECONOMICS. Issue No. 183. 16-20 April, 1998
7. Holger Henke and Ian Boxill (eds.). The End of the Ásian Model’. John Benjamin
Publ. Co. 2000, Chs. 1-3, 6, 9.
8. Vinod K. Anand: Conventional Wisdom in Economics: Focus on Contemporary
Thinking. The Indian Journal of Economics. Vol. LXXIX. No.313. Oct. 1998.
4c. The Caribbean and Globalisation
1. Hilbourne A. Watson(ed).: The Caribbean in the Global Political Economy.
Lynee Rienner Publ. 1994. Papers by Pantin, Lewis, Watson.
2. Karl Levitt.- The Right to Development. Fifth ECCB Sir Arthur Lewis Memorial
Lecture St. Lucia. 2000 (also in Levitt Right to Development book, Randle
publishers, 2006).
3. The following Readings from D. Pantin (ed). Reader in Caribbean Economy 2005:
Clive Thomas: The Inversion of Meaning: Trade Policy and the Caribbean
Sugar Industry,
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D.A. Pantin: The Experience of the offshore Oil Refinery Industry in the
Caribbean
Lou-Anne Barclay, Ralph Henry and Vanus James: Caribbean Economies
in the New International Trading Environment
*Keith Nurse: The Caribbean Music Industry
*Oral Williams: Off-short Financial Services
Wendell Samuel: Migration and Labour Remittances: A Case Study of the
Caribbean,
4. D.A. Pantin: Long Waves and Caribbean Development, SES. Vol 36 #2.
5. Mishra, Prachi: Emigration and Brain Drain: Evidence from the Caribbean. IMF
Working paper(WP/06/25). January, 2006
5. (2012) Informal Commercial Importers. (ICIs) in the Caribbean: Evidence
from Trinidad and Tobago and Guyana. The Transition Journal, Issue No. 41,
pp. 22 – 51. (with M. Franklin and A. Persaud).
6. Mahabir (2011) Early Signals of the CARIFORUM-EU Economic Partnership
Agreement
7. Lorde and Alleyne (2016) Estimating the Trade and Revenue Impacts of the
European Union CARIFORUM Economic Partnership Agreement: A Case Study
of Barbados.
5. Institutions
1. Rodrik and Subramanian: Rodrik, D., A. Subramanian and F. Trebbi (2002),
“Institutions Rule: The Primacy of Institutions over Geography and Integration in
Economic Development”, NBER Working paper no. 9305.
2. Douglass C. North: Economic Performance Through Time. Nobel Prize lecture in
Economic Science. Dec. 1993
3. Martinussen, John: Society, State and Market: A Guide to Competing Theories of
Development, London: Zed Books. 1997. Chapters 12-15
4. Ha-Joon Chang: Kicking Away the Ladder: Development Strategy in Historical
Perspective. Anthem Press. 2002. Chapters 3-4
5. (ongoing) Political Economy of Make Work Programs in the Context of Mineral
Booms
6. Van der Ploeg and Venables J. (2010) Harnessing Windfall Revenues: Optimal Policies
for Resource- Rich Developing Economies.
7. Collier, Van de Pleog and Venables (2009), Managing Resource Revenues in
Developing Economies
8. Shankha Chakraborty and Era Dabla-Norris (2009) The Quality of Public Investment
6. Small Size, Islandness and Natural Resource Dependence
6a. Small Size, ‘Islandness’
1. The following *readings from D. Pantin ed. Reader on Caribbean Economy:
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*W.A. Lewis: Industrialisation of the British West Indies
L. Best: Model of the Pure Plantation Economy
*W. Demas: Economics of Development of Small Economies
*Foote, Nelson: Barbados and Denmark compared
*Blackman, Courtney: Heterodox Adjustment model of the Caribbean.
2. D. Pantin: Review of Demas in L. Clarke(ed). In honour of W. Demas. CCMS
3. ---------------Economics of Sustainable Development in Small Caribbean Island
Economies. 1994. Ch.2
4. Looney, Robert E. – Macroeconomic Consequences of the Size of Third World
Nations: With Special Reference to the Caribbean. WORLD DEVELOPMENT Vol.
17. No. 1989.
5. K. Levitt: The Plantation Economy Model, in Pantin and Mahabir(ed). Maroonage,
No. 1.
6. Hosein R., Tewarie, B.: (2003), Arthur Lewis and Lloyd Best on Development
Strategy in Trinidad and Tobago, in S. Ryan, Independent Thought and Caribbean
Freedom: Essays in Honor of Lloyd Best, ISER pp 309-352.
7. Wong and Petreski: Dutch Disease in Latin American countries: De-industrialization,
how it happens, crisis, and the role of China. MPRA Paper (2014)
8. F. Carneiro, R. Longmore, M. Cazorla, and P. Jaupart. A Future without Oil?
Diversifying Options for Trinidad and Tobago. World Bank, No. 142, May 2014.
9. D. Pantin and R. Hosein. Competitiveness in small, open Mineral-based Economies:
The Case of the Hydrocarbon based Trinidad and Tobago Economy. In L. Brigullio
and Gordon Cordina(eds). Competitiveness Strategies for Small States.
Commonwealth Secretariat and University of Malta. (pages 170-187). 2004
10. Corden and Neary (1982) Booming Sector and De-Industrialization in a Small Open
Economy
11. Hosein (2016) Elements of the design of an ICL for a small petroleum exporting but
resource depleting economy.
12. Sinanan, Hosein and Franklin (2016) Dutch Disease, Labour Productivity and
Revealed Comparative Advantage in a small hydro-carbon based economy.
13. Arman and Moradi (2015) Procyclical Fiscal Policy: Is OPEC and Exception?
14. (Chian 2016) Fiscal Cyclicality in Brunei Darussalam
6b. Natural Resource Dependence
1. Macartahn Humphreys, Jeffrey D. Sachs& Joseph E. Stiglitz(eds).: Escaping the
Resource Curse. Columbia University Press. 2007
2. D. Seers: Mechanism of the Open Petroleum Economy: SES.
3. From Pantin(ed). Reader in Caribbean Economy:
*D. A. Pantin: The Political Economy of the Rentier Economy Revisited
*Clive Thomas: The Caribbean Sugar Industry
*C. Pemberton and S. Ragobir: The Caribbean Cocoa Industry
4. Application of International Trade Theory: The Caribbean Perspective, UWI
Press (2013).
5. R. Hosein and D. Sinanan. Transition Probability Matrices and Revealed
Comparative Advantage Persistence in a Small Oil-based Economy, West Indian
Journal of Engineering, Vol.34, Nos.1/2, January (2012), pp.16-29-v.
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7. Role of Regional Integration and Cooperation
1. From Pantin ed. Reader:
* H. Brewster and C. Thomas: Introduction to the Dynamics of West Indian
Integration
* Caricom Secretariat: Caricom Trade & Investment Report 2000
2. Norman Girvan: CSME Vision Report. 2008.
3. R. Hosein and J. Khadan. The Impact of Emerging Markets (BRICs) on
CARICOM Bank of Valletta Review, Europe Issue 45 Spring 201 (2012) pp 1-54 .
4. C. Lindsay. The EU-CARIFORUM EPA: Regulatory and Policy Changes and Lessons
for Other ACP Countries. Caribbean Journal of International Relations and Diplomacy,
Vol 1, No. 3 (2013).
5. M. L. Bishop, T, Heron and A. Payne. Caribbean development alternatives and the
CARIFORUM–European Union economic partnership agreement, Journal of
International Relations and Development (2013) 16, 82–110.
6. Hosein, Gookool and Mohammed (2016) Small Country Trade Competitiveness and
Export Sustainability: A CARIFORUM Perspective
7. Hosein, Gookool (2016) Unpausing the Caribbean Single Market and Economy:
Trinidad and Tobago as a Labour Hub for the CARICOM
NB: Please note that the reading list will be supplemented with additional materials as the
course progresses.
ADDITIONAL INFORMATION
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Please note that UWI Examination Regulation No. 19 states that:
Any candidate who has been absent . . . . or whose attendance at prescribed lectures,
classes, ... tutorials, ... has been unsatisfactory . . . . or who has failed to submit essays or
other exercises . . . . may be debarred by the relevant Academic Board, on the
recommendation of the relevant Faculty Board,. . . .from taking any University
examinations . . . . “
The Department of Economics//Faculty of Social Sciences requires students to attend
and participate in at least 75% of tutorials for a course to avoid being debarred from
taking the final exam.
“97. (i) Cheating shall constitute a major offence under these regulations.
(ii) Cheating is any attempt to benefit one’s self or another by deceit or fraud.
(iii) Plagiarism is a form of cheating.
(iv) Plagiarism is the unauthorized and/ or unacknowledged use of another person’s
intellectual effort and creations howsoever recorded, including whether formally
published or in manuscript or in typescript or other printed or electronically presented
form and includes taking passages, ideas or structures from another work or author
without proper and unequivocal attribution of such source(s), using the conventions for
attributions or citing used in this University.
103. (i) If any candidate is suspected of cheating, or attempting to cheat, the circumstances shall
be reported in writing to the Campus Registrar. The Campus Registrar shall refer the
matter to the Chairman of the Campus Committee on Examinations. If the Chairman so
decides, the Committee shall invite the candidate for an interview and shall conduct an
investigation. If the candidate is found guilty of cheating or attempting to cheat, the
Committee shall disqualify the candidate from the examination in the course concerned,
and may also disqualify him/her from all examinations taken in that examination
session; and may also disqualify him/her from all further examinations of the
University, for any period of time, and may impose a fine not exceeding Bds$300.00 or
J$5000.00 or TT$900.00 or US$150.00 (according to campus). If the candidate fails to
attend and does not offer a satisfactory excuse prior to the hearing, the
Committee may hear the case in the candidate’s absence.”