ADC6610

Governance Structure and Economic Development

Spring 2008

PROFESSOR:       Yoshitaka Okada

CLASS ROOM:      

CLASS HOURS:     18:00-21:00 on Mondays

OFFICE HOURS:    Monday evening by appointment

Comprehensive Syllabus:  http://www.fla.sophia.ac.jp/academics/syllabus/IBE469_Okada.pdf

 

COURSE DESCRIPTION:

         When the world is facing radical transformation in the global industrial structure, globalization of business activities, a new system of production, and a new ideological orientation on development, it is necessary for developing countries to reconstruct developmental policies adapting to diverse changes in environment.  But changes are so complex and intensive that new adaptation requires not only response to external environment, but also accommodation of existing socio-economic conditions.  In a sense, developmental policies now need to have a vision of harmonizing global movements and the diverse sectors of socio-economic activities, namely, a new governance of national economy.  This course attempts to capture the recent movements of government policies and administrative practices, which try to generate a harmonized system of diverse development policies, organizations, and management practices.  I shall heavily rely on an institutional perspective.

 

READING ASSIGNMENTS

     Required readings for this course are marked with ** in this course outline and are deposited in the library.  You do not have to read articles without stars.

 

TERM PAPER: A term paper of approximately 15 to 20 pages on a specific developmental issue is required.

Paper Proposal Due: April 28, 2008               Write a brief paragraph indicating the nature of the topic. If possible, give a brief skeletal outline also. Indicate at least three references that you think will be useful.

Paper Due:  June 16, 2008 (Monday)

PAPER PRESENTATION BY STUDENTS

                   June 16, 2008 (Monday)

MID-TERM EXAMINATION:  Due date: May 12, 2008 (Monday) 

Select three theories from the section II (Theoretical Background) and answer two questions in each theory: (1) briefly summarize the argument of the theory and (2) write how the theory can be applied to the situation of developing countries with at least one good concrete example.  The report should not exceed fifteen pages written in double space.

 

COURSE GRADE:                 50% on the paper; 40% on the examination, 10% on class participation and paper presentation.

COURSE OUTLINE:

I. Introduction: Old and New Development Theories

II. Theoretical Background

           A. Diffusionist, Growth and New Growth Theories

           B. New Political Economy (New Government Failure)

           C. Institutions of Economic Development

           D. Social Embeddedness and Networks

           E. Social Capital

           F. New Institutional Economics

     G. Methodological Individualism and Distributed Knowledge

           H. Path Dependent Development

      I. New Market Failure

III. Institution Building

           A. Government, Governance and Development

           B. Corruption in Developing Countries

           C. Governance of Economies and Diversity of Capitalism

                   1. Governance Structure of Industrial System

                   2. Corporate Governance

                   3. Techno-Governance Structure

                   4. Managing with Market-Type Mechanism

           D. Role of Civil Society and NGOs

1. Concept of Civil Society

                    2. NGO Performance and Accountability

                    3. Public, Private and NGO Collaboration

          4. Global Partnership between UN and the Private Sector

       E. Corporate Social Responsibility , Socially Responsible Investments and the Bottom of Pyramid

 

4/7 S1

I. Introduction: Old and New Development Theories

**320. Gerald M. Meier, “The Old Generation of Development Economics and the New,“

in Gerald M. Meier and Joseph E. Stiglitz, eds., Frontiers of Development Economics: the Future in Perspective, (Oxford: Oxford University Press, 2001), pp. 13-50.

 

II. Theoretical Background

4/7 S2

A. Diffusionist, Growth and New Growth Theory

A.1. Diffusionist Approach

11. W. W. Rostow, The Stages of Economic Growth: A Non-Communist Manifesto, (Cambridge: Cambridge University Press, 1971), pp. 1-58.

 

A.2 New Growth Theory

304 Robert J. Barro, Determinants of Economic Growth: A Cross-Country empirical Study, (Cambridge, Massachusetts: The MIT Press, 1997), pp. 1-47.

 

B. New Political Economy (New Government Failure)

**353 Joachim Ahrens, “From New Political Economy to New Institutional Economics,” in Governance and Economic Development, (Cheltenham, UK: Edward Elgar, 2002), pp. 38-68.

 

4/14 S1

C. Institutions of Economic Development

                  12nn.       Charles F. Sabel, "Learning by Monitoring: The Institutions of Economic Development," in

                                                 The Handbook of Economic Sociology, pp. 137-165.

 

4/14 S2)

D. Social Embeddedness and Network

         **27.      Mark Granovetter, "Economic Action and Social Structure: The Problem of

                           Embeddedness," The Sociology of Economic Life, pp. 53-84.

E. Social Capital

332. Melinda Smale and Vernon Ruttan, “Social Capital and Technical Change: The Groupments Naam of Burkina Faso,” Christopher Clague, Institutions and Economic Development, (Baltimore: The Johns Hopkins University Press, 1997), pp. 182-200.

 

400. Philip Evans and Bob Wolf, “Collaboration Rules,” Harvard Business Review, July-August 2005, pp. 96-104.

 

4/21  S1

F. New Institutional Economics

                   **24.        Oliver Williamson, "The Economics of Organization: The Transaction Cost

                       Approach,"  American Journal of Sociology 87 (3,1981):548-577.

4/21 S2

G. Methodological Individualism and Distributed Knowledge (Frederick Hayek)

             Chiaki Nishiyama and Kurt R. Leube, The Essence of HAYEK, (Standord: Hoover Institution Press, 1984)

H. Path Dependent Development

       51.   Douglass C. North, Instituions, Institutional Change and Economic

                        Performance, (Cambridge: Cambridge University Press, 1990), Ch. 1, 3, and 9. 

 

 

Paper Proposal Due

4/28 S1

I. New Market Failure (Information Economics)

**312. Joseph Stiglitz, “Markets, market failures, and development,” American Economic Review 79 (1989, 2, May) : 197-203.

 

III. Institution Building

4/28 S2

5/5 S1, S2

             A. Government, Governance and Development

**353 Joachim Ahrens, “Institutional change and economic performance,” in Governance and Economic Development, (Cheltenham, UK: Edward Elgar, 2002), pp. 69-113.

 

 (Take-home Mid-term Examination Due)

5/12 S1

      B. Corruption in Developing Countries

**404. The World Bank, Anticorruption in Transition: A Contribution to the Policy Debate, (Washington, D.C.: The World Bank, 2000).

 

5/12 S2

           C. Governance of Economies and Diversity of Capitalism

1.              Governance Structure of Industrial System                    

201 Peter A. Hall and David Soskice eds.,  “An Introduction to Varieties of Capitalism,” in Varieties of

Capitalism: The Institutional Foundations of Comparative Advantage, (Oxford: Oxford University Press,

                2002), pp. 1 – 68.

5/19 S1

                   2. Corporate Governance

           15nn.        Jonathan P. Charkham, Keeping Good Company, (Oxford: Clarendon Press:

                        1994), pp. 74-113 on Japan and pp. 182-220 on the U.S.A.

5/19 S2

                   3. Techno-Governance Structure

             **8.                 Bengt-Ake Ludvall (ed.), National System of Innovation, (London: Printer                                                                                                                                             Publishers,  1992), pp.  1-44.

5/26 S1

                   4. Managing with Market-Type Mechanism

                         51nn.                                  Organization for Economic Cooperation and Development, Managing with Market-type

                           Mechanisms, (Paris: Organization for Economic Cooperation and Development, 1993).

5/26 S2

        5. Bottom of  Pyrammid

401.     C.K. Prahalad and Allen Hammond, “Serving the World’s Poor, Profitably,” Harvard Business Review, September 2002, pp. 48-57.

 

           C. Role of Civil Society (NGOs and Development)

                             1. Concept of Civil Society

                   **100.     Lester M. Salamon, “The Rise of the Nonprofit Sector,” Foreign Affairs, Vol. 73 (No. 4),

                                                   1994, pp. 109-122.

6/2 S1

                             2. NGO Performance and Accountability

                      107    Michael Edwards and David Hulme, (eds.), Beyond the Magic Bullet, (West Hartford,

                             Connecticut: Kumarian Press, Inc., 1996), pp. 1-39.

 

6/2 S2                 3. Public, Private and NGO Collaborations

  **251.    Lester M. Salamon, The State of Nonprofit America, (Washington, D.C.: the Brookings Institution Press, 2002),

              pp. 3-61.

 

               4. Global Partnership between UN and the Private Sector

        250.    United Nations, Building Partnerships: Cooperation between the United Nations System and the Private Sector, (N.Y.: United Nations Publication, 2002), pp. 43-131, 135-148, 176-190.

 

6/9 S1, S2

              5. Corporate Social Responsibility, Socially Responsible Investments and the Bottom of Pyramid

** 260  David Hess, Nikolai Rogovsky, Thomas W. Dunfee, “The Next Wave of Corporate Community Involvement: Corporate Social Initiatives, California Management review 44(2, Winter, 2002) 110-125.

 

      262. Andrew Friedman and Samantha Miles, “Developing Stakeholder Theory,” Journal of Management Studies 39(1, January 2002), pp. 1-21.

 

Paper Due

6/16 S1, S2    Students' Paper Presentations