F1ID 5015 - Country Development Strategies

Most of us support sustainable development. Yet, without sufficient public and private investment, lower-income countries cannot achieve key Sustainable Development Goals (SDGs)—such as ending extreme poverty and hunger, ensuring quality health care and education, expanding access to clean energy, and strengthening governance.

This course takes a practical approach to how lower-income countries can attract more private investment, accelerate economic growth, and mobilize resources for public investment in health, education, and infrastructure.

Drawing on the work of economists Hausmann, Rodrik, and Velasco (HRV), the first half of this course examines common binding constraints to private investment—anti-competitive behavior, bad regulation, fiscal mismanagement, limited credit access, inadequate human capital, or poor infrastructure—and explores credible technical solutions.

However, technical fixes often fail due to government incapacity, corruption, or domestic conflict. The second half of the course addresses these political and institutional challenges, as well as the role of international donors.

For the final assignment, each two-student team will prepare a 12-page Country Development Strategy (CDS) paper, applying the HRV framework to identify key binding constraints to growth, propose feasible technical solutions, and design strategies to overcome real-world implementation challenges.

Learning Outcomes

• An ability to identify binding constraints on economic growth;
• Greater knowledge about market failures; government mis-regulation; fiscal management; access to bank credit; management of public health, education, and infrastructure; anti-corruption reforms; conflict resolution; government capacity-building; and donor programs;
• Skill in assessing political-economy issues that may impede implementation of technical solutions, and identifying feasible workaround responses; and
• Practice in integrating technical analyses, recommendations, and political-economy considerations into a credible & coherent Country Development Strategy

Professional Skills

Situational assessment; strategic analysis; professional writing; debating issues; and team work

The student should be able to understand a supply and demand graph.

This course’s 2-hour classes will average about 70% lecture and 30% class discussion. In-class discussion will include 7 short case studies plus general discussion

• Mid-term exam 45%
• 2-student team course paper 45%
• Class participation 10%

• Attendance: 2 hours a week / 24 hours a semester
• Reading and Preparation for Class: 10 hours a week / 60 hours a semester
• Research and Preparation for Group Work: 11 hours a week / 66 hours a semester