Module Directory

This module examines the distinctive features of the economies of the less developed countries and introduces you to the literature that attempts to explain the persistence of poverty in those economies. We start with a historical analysis of the growth process to examine why there has been a divergence in the performances between the developed and the developing countries.

The module will then elaborate on the role of institutions and incentives in shaping long run economic development. In particular, we shall examine the role of market imperfections, non-market institutions (such as social norms) and governance institutions. For instance, the ability of poor people to acquire skills may relate to credit constraints (which are a feature of imperfect financial markets), the distribution of wealth within an economy, and investments made by the government in schooling (which in turn may be determined by particular political institutions).

The module combines economic theory with case studies to understand observed phenomena such as child labour, extreme inequality in wealth and income, and high population growth. Particular attention is given to how one can evaluate and determine appropriate policy options.

The aims of this module are:

• To give students a good understanding of the functioning of the economies of the less developed countries and of the policy options that could potentially alleviate poverty.

By the end of this module, students will be expected to be able to:

1. Have a good understanding of the functioning of the economies of the less developed countries and of the policy options that could potentially alleviate poverty.


2. Apply analytical reasoning to problems facing the developing countries and make informed contributions to debates and discussions about possible ways to enhance welfare in these countries.

Employability skills

This course will provide a range of employability skills:

1. In particular you will gain academic skill, professional working skills, and external awareness.


2. The models discussed in class with provide you with numeracy skills while the ability to do a term paper and read current research work will allow you to develop working skills.


3. Finally, given the topic of the course, you will be exposed to issues facing people in other countries and differences between other cultures that will increase your external awareness.

The module will be delivered via:

• One 2-hour lecture per week.
• One 1-hour class per week

In one term.