This course focuses on binding constraints to private investment and economic growth and development in lower-income countries. To encourage private investment (as well as improve citizens' quality of life), sufficient government investment in public goods (e.g., health, education, infrastructure) is needed. For this, a government needs sufficient financial resources: e.g., from taxes, exports, or domestic or offshore borrowing. The 1st half of this course uses Hausmann-Rodrik-Velasco (HRV) theory to identify possible binding constraints on private investment (e.g., insufficient competition, bad regulation, fiscal mismanagement, low credit access, weak human capital, or poor infrastructure) and credible technical responses thereto. Implementation of technical responses, however, often fails because of government incapacity, corruption, or conflict -- issues addressed in the 2nd half of this course. A 12-page Country Development Strategy (CDS) course paper will give each 2-student team practice in identifying binding constraints, technical solutions, and workarounds to real-world implementation issues.
LEARNING OUTCOMES
1. Knowledge about credible technical responses to economic development challenges
2. Skill in assessing and working around real-world impediments to economic development policies
3. Practice in integrating technical analyses recommendations into a credible & coherent Country Development Strategy
PROFESSIONAL SKILLS
Situational assessment; strategic analysis; professional writing; speaking; and team work