Syllabus Hjort IPADE - Columbia Business School · Page1!of!6!...
Transcript of Syllabus Hjort IPADE - Columbia Business School · Page1!of!6!...
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THE PRIVATE SECTOR’ ROLE IN INTERNATIONAL DEVELOPMENT
FALL 2015
Professor Jonas Hjort
Uris 622
212-‐854-‐5957
COURSE DESCRIPTION
Most of the world’s economic growth going forward will occur in emerging markets. Countries that were previously seen as hopeless “basket cases” – including many in Latin America – are now seen as exciting, untapped opportunities for actors in the private sector. Conversely, the essential role of the private sector in generating sustainable economic growth is increasingly recognized by development policymakers.
To successfully operate in countries with weak legal and political systems and poorly functioning capital and factor markets, you need a different framework for analyzing challenges and opportunities. But such a framework must also recognize the ethical challenges faced when operating in less rule-‐based economies and the opportunity for greater positive social impact in poor countries. The four class sessions that comprise my teaching (1 in the September class week, 2 in the Mexico week and 1 in the November class week) will be about developing such a framework. In addition to these four class sessions, the week-‐long IPADE-‐led course experience in Mexico City will deal largely with the impact and importance of corporate social responsibility particularly when operating in less developed countries.
In our four class sessions we shall cover themes such as
-‐ Contractual issues, how to maneuver in weak political systems and CSR
-‐ How to bring new technologies and managerial progress to poor countries
-‐ Natural resource sectors and labor issues
In each session we will define a particular set of issues and start by developing a framework of analysis, usually derived from economics. We learn how the framework can be applied to specific cases and examples, and go through the latest research in the field, before rounding off with practical take-‐aways.
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One thing that is important to note is that, while this course is not about learning specific ways to make money in poor countries, the course is equally useful for those wanting to do business and those wanting to work on development policy.
For the material covered in our four class sessions together, grading will be based on a brief, in-‐class team assignment in Mexico City, a longer individual assignment afterward, and class participation. In addition, a separate grade will be given by IPADE for the course work done in the week-‐long experience there which will take the form of an individual paper due at the end of that week. A single, final course grade will be awarded based on both of the aforementioned grades and this grade will be your official grade for the course.
CLASS PREPARATION
Readings:
A course packet, which includes nearly all of the readings and cases, is required. There is no textbook for this course. For each topic, there will be a set of assigned readings, sometimes including cases, which will help develop the underlying concepts and/or provide examples. It is essential that you read these materials prior to class.
Extra Readings:
This course provides a broad survey of many issues, and at times you may want to read further about issues of personal interest. The reading list will therefore also point to resources where you may find more extensive (and technical) analysis. These readings are entirely optional, and are meant simply to provide a reference for you now or in the future.
CLASS SCHEDULE Class Topic Sept in NY
1. Welcome and overview of the course: Why are emerging markets still emerging? 2. Contractual problems and investor protection
M.C. 1 1. The organization of firms and the private sector in developing countries 2. Technology adoption
M.C. 2 1. Exploiting natural resources in developing countries 2. Low wages and labor issues
Nov in NY
1. Politics and corruption 2. Social enterprise and CSR
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READINGS Sept in NY: 1. Welcome and overview of the course: Why are emerging markets still emerging? 2. Contractual problems and investor protection Readings part 1: 1. Easterly, “The Ideology of Development,” Foreign Policy July/August 2007 2. Spence Commission Report -‐
http://www.growthcommission.org/index.php?option=com_content&task=view&id=96&Itemid=169 [watch the video only]
3. Pritchett, “Divergence, Big Time” in Meier & Rauch, Leading Issues in Economic Development 4. Anand, Khanna, and Rivkin, “Market Failures”, Harvard Business School: Note, April 2000 [read pp. 1-‐7 only] 5. Prahalad and Hart, “The Fortune at the Bottom of the Pyramid”, Strategy and Business Issue 26,
http://www.csrwire.com/pdf/Prahalad-‐excerpt-‐001-‐022.pdf Optional readings part 1: 1. “Bulging in the Middle”, The Economist, October 20 2012 2. Mallaby, “The politically incorrect guide to ending poverty,” The Atlantic 2010
(http://www.theatlantic.com/magazine/archive/2010/07/the-‐politically-‐incorrect-‐guide-‐to-‐ending-‐poverty/8134/) 3. Miguel, “Africa Unleashed”, Foreign Policy, November/December 2011 4. Jones, review of “The Next Convergence: The Future of Economics Growth in a Multispeed World” by Spence,
http://www.stanford.edu/~chadj/ScienceBookReview2011.pdf 5. Acemoglu, Johnson, and Robinson, “Institutions as a Fundamental Cause of Long-‐Run Growth”, Handbook of
Economic Growth (ch. 6), 2005 6. Sachs, J.D. and Warner, A. (1997) ‘Sources of Slow Growth in African Economies’, Journal of African Economies 6:
335–76. 7. Rodrik, “Second Best Institutions,” NBER Working Paper 14050 Readings part 2: 1. Besanko, Dranove, Shanley, and Schaefer, Economics of Strategy, 3rd Edition, 2004, p. 127-‐136 2. “Thais make a mess of their muddling,” Financial Times, June 22, 1993 3. “Chinese Exporters Stumble over IP,” Financial Times, July 25, 2003 4. “Protecting intellectual property in China”, The McKinsey Quarterly, August 2005 5. “Fake and poor quality malaria drugs risk crisis in Africa, warn scientists”, The Guardian, January 16, 2012 Optional readings part 2: 1. Fisman, “The Highest Form of Flattery”, Slate, May 30, 2011 2. “A Local Firm’s Baffling Trip Through China’s Arbitration System”, Los Angeles Times, December 26, 2003 3. Alexander Dyck & Natalya Volchkova & Luigi Zingales, 2008. "The Corporate Governance Role of the Media: Evidence
from Russia," Journal of Finance, vol. 63(3), pages 1093-‐1135, 06. 4. Johnson, McMillan and Woodruff, “Property Rights and Finance”, American Economic Review, 92(5), 2002 5. “A gathering storm”, The Economist, June 9, 2007 6. “Inside Pfizer’s fight against counterfeit drugs”, Bloomberg Businessweek, January 17, 2013 7. Zhao, “Doing R&D in Countries with Weak IPR Protection: Can Corporate Management Substitute for Legal
Institutions?”, Management Science, 2008. 8. Branstetter, Fisman and Foley. "Do Stronger Intellectual Property Rights Increase International Technology Transfer?
Empirical Evidence From U.S. Firm-‐Level Panel Data," Quarterly Journal of Economics, 2006, v121(1,Feb), 321-‐349. 9. Michael Kremer, Rachel Glennerster and Heidi Williams, "Creating Markets for Vaccines," Innovations, 2006, 1(1): 67
– 79 (http://www.economics.harvard.edu/faculty/kremer/files/innovationsFinal.pdf) 10. Maskus, “Ensuring Access to Essential Medicines: Some Economic Considerations”, mimeo UC Boulder, 2002
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M.C. 1: 1. The organization of firms and the private sector in developing countries 2. Technology adoption Readings part 1: 1. Sargent, “Getting to Know the Neighbors: Grupos in Mexico”, Business Horizons, 2001. 2. Khanna and Yafeh (2007), “Business Groups in Emerging Markets: Paragons or Parasites?” Journal of Economic
Literature XLV: 331-‐372 (June), sections 1 – 3 3. Bloom, Genakos, van Reenen and Sadun, “Management practices across firms and countries”, Academy of
Management Perspectives, 2012 4. Bertrand and Schoar, "Managing with Style: The Effect of Managers on Firm Policies.", Quarterly Journal of
Economics, 2003, 118(4), pp. 1169-‐208, sections I, II and VII 5. “Give Sam Walton the Nobel Prize”, Foreign Policy, May/June 2013 Optional readings part 1: 1. “The masala Mittelstand”, The Economist, August 11, 2012 2. “Transforming Indonesia’s Business Groups”, The Jakarta Post, January 18, 2008 3. “Many Wall Street Banks Woo Children of Chinese Leaders”, New York Times, August 20, 2013 4. “India’s Woes Reflected in Bid to Restart Old Plant”, New York Times, March 22, 2010 5. McKenzie, de Mel and Woodruff, “Returns to Capital in Microenterprises: Evidence from a Field Experiment”,
Quarterly Journal of Economics, 123(4), 2008 6. Tybout, “Manufacturing Firms in Developing Countries: How Well Do they Do, and Why”, Journal of Economic
Literature, 38(1), 2000 7. Almeida et al., “The structure and formation of business groups: Evidence from Korean chaebols”, Journal of
Financial Economics, 2011 8. Bloom, Eifert, Mahajan, McKenzie and Roberts, “Does management matter: evidence from India”, forthcoming in
Quarterly Journal of Economics (http://www.stanford.edu/~nbloom/DMM.pdf) 9. Bloom and van Reenen, “Why do management practices differ across firms and countries?”, Journal of Economic
Perspectives, 2010 Readings part 2: 1. Jack, Stoker and Suri, “Documenting the birth of a financial economy”, Proceedings of the National Academy of
Sciences, 109(26), 2012 2. “Africa’s mobile economic revolution”, The Guardian, July 23, 2011 3. “Upwardly mobile: Kenya’s technology start-‐up scene is about to take off”, The Economist, August 25, 2012 4. “Pakistan Defends Its Soccer Industry”, Wall Street Journal, April 26 2010 Optional readings part 2: 1. Foster and Rosenzweig, “Microeconomics of Technology Adoption”,
(http://www.econ.yale.edu/growth_pdf/cdp984.pdf) 2. Jack and Suri, “Mobile Money: The Economics of M-‐Pesa” (http://www.mit.edu/~tavneet/M-‐PESA-‐Final2.pdf) 3. Aker and Mbiti, “Mobile Phones and Economic Development in Africa”, Journal of Economic Perspectives, 24(3),
2010 4. Boston Review forum “Can Technology End Poverty?”, various articles
(http://www.bostonreview.net/BR35.6/ndf_technology.php) 5. “The Allure of Low Technology,” The Economist, December 20, 2003 6. Fafchamps and Quinn, “Networks an Manufacturing firms in Africa: Initial Results from a Randomised Experiment”,
(http://www.dartmouth.edu/~neudc2012/docs/paper_241.pdf) 7. “A Guide in Africa”, The Economist, February 23 2013 8. “Is it a phone, is it a bank?”, The Economist, March 30 2013
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M.C. 2: 1. Exploiting natural resources in developing countries 2. Low wages and labor issues Readings part 1: 1. “The Paradox of Plenty”, The Economist, December 24, 2005 2. Note on Conflict Diamonds: “Why Are Civil Wars, Like Diamonds, Forever?” HBS 9-‐702-‐027 3. “China, Filling a Void, Drills for Riches in Chad,” The New York Times, Aug 13, 2007. 4. Fisman, “Diamonds Are a Guerilla’s Best Friend”, Slate, August 17, 2007 5. Interview with Adriana Giudice, CEO of Austral. Available at: http://www.pcfisu.org/marine-‐programme/case-‐studies/peruvian-‐anchovy-‐fishery/ Optional readings: 1. “Tackling the Oil Curse,” The Economist, September 25, 2004 2. “More than Minerals”, The Economist, March 23 2013 3. La Ferrara and Guidolin, “Diamonds are Forever, Wars are Not. Is Conflict Bad for Private Firms?”, American
Economic Review, 97(5), 2007 4. Le Billion, “Angola’s Political Economy of War: The Role of Oil and Diamonds, 1975 – 2000”, African Affairs, vol. 100,
2001 5. “Profiteers’ war that goes on forever”, The Guardian, June 30 1999 6. Meyersson et al., “The Rise of China and the Natural Resource Curse in Africa”, 2008, mimeo LSE
(http://personal.lse.ac.uk/padro/meyersonpadroqian_20080407_all.pdf) 7. Collier, “Angola: Options for Prosperity”, 2006, mimeo Oxford
(http://users.ox.ac.uk/~econpco/research/pdfs/Angola-‐OptionsforProsperity.pdf) Readings part 2: 1. “Garment Factories, Changing Women’s Roles in Poor Countries,” The New York Times, July 21, 2010 2. “Hitting the Wall: Nike and International Labor Practices”, HBS case 3. “Public Outrage Over Factory Conditions Spurs Labor Deal”, New York Times, May 19, 2013 4. Sviatschi, “Long-‐term effects of temporary labor demand: Free trade zones, female education and marriage market
outcomes in the Dominican Republic”. Read pages 1 – 5 available here: http://www2.warwick.ac.uk/fac/soc/economics/events/2014/3/phd_conference_2014/maria_micaela_sviatschi.pdf Optional Readings: 1. Brown, Deardorff, and Stern, “The Effects of Multinational Production on Wages and Working Conditions in
Developing Countries,” NBER Working Paper #9669, 2003 2. “Grinding the Poor,” The Economist, September 27, 2001 3. “Chinese Girls’ Toil Brings Pain, Not Riches,” The New York Times, October 2, 2003 4. Verhoogen et al., “Fairness and Freight-‐Handlers: Local Labor Market Conditions and Wage Fairness Perceptions in a
Trucking Firm.”. Industrial and Labor Relations Review, vol. 60, no. 4, pp. 477-‐498, July 2007. 5. Harrison and Scorse, “Multinationals and Anti-‐Sweatshop Activism”, American Economics Review, 2010, 100(1): 247-‐
73. 6. Martins and Esteves, "Foreign Ownership, Employment and Wages in Brazil: Evidence from Acquisitions,
Divestments and Job Movers," 2008, IZA Discussion Papers 3542, Institute for the Study of Labor (IZA) 7. Kaur, “Nominal wage rigidity in village labor markets”, 2012, mimeo Columbia
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Nov in NY: 1. Politics and corruption 2. Social enterprise and CSR
Readings part 1: 1. “Rwanda and other aid darlings: Efficiency vs freedom,” The Economist, August 5, 2010 2. “Billionaires’ Rise Aids India, and the Favor is Returned,” The New York Times July 26, 2011 3. Przeworksi & Limongi, “Political Regimes and Economic Growth,” Journal of Economic Perspectives, 1993 4. Olken and Pande, “Corruption in Developing Countries”, forthcoming in Annual Review of Economics, section 2 (pp.
13 – 21). (http://economics.mit.edu/files/7589) 5. “The Road to Hell is Unpaved,” The Economist, December 19, 2002 Optional Readings: 1. Jones and Olken, “Do Leaders Matter? National Leadership and Growth since World War II,” Quarterly Journal of
Economics, 2005 2. “The Most Hated Bangladeshi, Toppled From a Shady Empire”, The New York Times, April 30, 2013 3. Fisman, “Estimating the Value of Political Connections,” American Economic Review, September 2001 4. Fisman, Vig and Schulz, “Private Returns to Public Office”, CBS working paper
(http://www2.gsb.columbia.edu/faculty/rfisman/papers/privatereturns.pdf) 5. “Smelling of Moses,” The Economist, January 13, 1996 6. “A High-‐Tech Fix for One Corner of India,” The New York Times, December 27, 2002 7. “Ex-‐Leader Stole $100 Million From Liberia,” The New York Times, September 18, 2003” 8. Easterly, “Corruption and Growth” in The Elusive Quest for Growth, Cambridge, MA: MIT Press, 2001, Ch. 12 9. “India’s Corruption Blues,” The Economist, March 24, 2001 10. “Corruption in International Business (B)” (HBS) 11. Shleifer and Vishny, “Corruption,” Quarterly Journal of Economics, August 1993 12. Olken, Monitoring Corruption: Evidence from a Field Experiment in Indonesia,
Journal of Political Economy 115 (2), pp. 200-‐249, April 2007. (http://econ-‐www.mit.edu/files/2913)
Readings part 2: 1. Friedman, M. "The Social Responsibility of Business Is to Increase Its Profits," N.Y. Times Magazine, Sept. 13, 1970 2. Porter and Kramer, “Strategy and Society: The Link Between Competitive Advantage and Corporate Social
Responsibility,” HBR, 2006 3. Fisman, “Virtue for Sale,” Slate, 2007 (http://www.slate.com/id/2175923/) 4. “Why ‘Social Enterprise’ Rarely Works”, Wall Street Journal, June 1, 2007 Optional Readings: 6. Hiscox & Smyth, “Is there Consumer Demand for Improved Labor Standards? Evidence from Field Experiments in
Social Product Labeling,” 2008 (http://www.people.fas.harvard.edu/~hiscox/SocialLabeling.pdf) 7. Forbes report: http://www.forbes.com/2008/10/16/corporate-‐social-‐responsibility-‐corprespons08-‐lead-‐
cx_mn_de_tw_1016csr_land.html 8. “Good Business; nice beaches”, The Economist, May 19, 2012 9. “Sustainability Nears a Tipping Point”, report on CSR by BCG and the MIT Sloan Management Review, 2012
(https://www.bcgperspectives.com/content/articles/sustainability_vision_mission_sustainability_nears_a_tipping_point/)
10. Elfenbein, Fisman and McManus, “Charity as a Substitute for Reputation: Evidence from an Online Marketplace”, forthcoming in the Review of Economic Studies (http://www2.gsb.columbia.edu/faculty/rfisman/papers/old/CharitySubstitutesForReputation_07052011_final.pdf)