Harnessing Natural Resources for Development

MGDI60441 Harnessing Natural Resources for Development 15 Semester 1 Postgraduate Taught Level 6 Sophie Van Huellen Unit coordinator 1 FHEQ level (Framework for Higher Education Qualifications) ' Masters/Integrated Masters P4 ' European Credit Transfer & Accumulation System Rating : 7.5 The course introduces students to the social and economic challenges faced by countries whose exports (or imports) are almost exclusively composed of raw materials (primary commodities and natural resources) with little or no processing. Paradoxically, countries that are rich in natural resources tend to have lower economic growth and development outcomes than countries with fewer natural resources. This phenomenon has been dubbed the resource curse. The course introduces students to the social and economic challenges faced by countries who are rich in natural resources and whose exports (or imports) are almost exclusively composed of raw materials (primary commodities and natural resources) with little or no processing. The course is relevant for students of development economics and development studies who want to gain a better understanding of the complex issues surrounding the resource curse and primary commodity dependency. The course draws on literature in the areas of economics, development economics, and political economy. This literature intersects with other disciplines including anthropology, geography, international relations, law, and politics and the course has therefore strong interdisciplinary elements to it. The course aims to:<ul><li>Introduce students to different forms of commodity dependency, how these dependencies have evolved historically, and different dimensions of the resource curse.</li><li>Provide students with an in-depth understanding of the complex social, economic, and political challenges faced by commodity dependent and resource rich economies and the problems these entail for economic development.</li><li>Enable students to critically evaluate different explanations and policy solutions for the resource curse proposed by orthodox and heterodox scholars in development and development economics.</li><li>Enable students to critically assess current ‘success stories’ based on case-study evidence.  </li></ul> <ul> <li>Explain and evaluate complementing and competing explanations for the resource curse put forward by different schools of thought.</li> <li>Identify and evaluate the efficacy of different policies devised to manage the resource curse by referencing contemporary economic and social theories and case study evidence.</li> <li>Understand and appraise internal and external constraints commodity dependent economies face.</li></ul> <ul> <li>Critically engage with different sets of orthodox and heterodox literature discussing the resource curse and evaluate core contemporary debates.</li></ul> <ul><li>Formulate concise arguments drawing on a diverse set of literature.</li><li>Use country case studies to critically evaluate and test competing research hypotheses.</li><li>Understand and analyse key economic and social indicators related to commodity dependency and the resouce curse.</li></ul> <ul> <li>Conduct research independently and as part of a team.</li> <li>Present complex theories and case studies in front of an audience.</li> <li>Write high quality country case studies and formulate evidence-based policy advice.</li></ul> The following topics are covered during ten weekly lectures and seminars:Topic 1. The state of commodity dependence - Historical perspective and stylised facts Topic 2. Resource curse I - External balances, Dutch disease, and terms of trade Topic 3. Resource curse II - Internal balances, Dutch disease and crowding out hypothesis Topic 4. Resource curse III - Financialisation, crises and pro-cyclical funding Topic 5. Resource curse IV – Good-governance, political settlement, and rent seeking Topic 6. Dependency, colonialism, and the structuralist perspective Topic 7. Managing the resource curse I - ICAs, and commodity-financed industrialization Topic 8. Managing the resource curse II - GVCs, and commodity-based industrialization Topic 9. Managing the resource curse III – Macro-management and structural transformation Topic 10. Managing the resource curse IV – Anti-corruption, resource nationalism, and risk hedging The teaching material for this course draws on a mix of theoretical literature and country case studies. Country case studies are introduced using different media including peer reviewed academic papers, short videos, podcasts, and policy reports. Core theoretical debates are introduced during weekly lectures. The theoretical discussions are complemented by country cases studies which are discussed during weekly seminars. In preparation for the weekly seminars, students are required to go through guided readings and additional media references and review the theories covered during the lecture. Seminar discussions are facilitated by questions or hypotheses students are asked to evaluate. Emphasis is placed on students’ ability to discuss and apply complex theories to real world examples and critically evaluate theoretical propositions against case study evidence. Teaching will occasionally and where appropriate draw on expertise from development practitioners based at relevant international organisations such as the United Nations Conference on Trade and Development (UNTAD), the Common Fund for Commodities (CFC), the Commonwealth Secretariat, etc. The module is assessed by a 2-hour end of semester exam accounting for 60 per cent of the overall grade, a 1,200-word coursework accounting for 40 per cent of the overall grade. In addition, students are asked to deliver a presentation as a formative assessment. Before submitting the coursework, students are asked to exchange their drafts with peers and prepare a presentation of their work. The formative assessment is designed to strengthen students’ presentation and group working skills and provides them with an opportunity to present and receive feedback on their coursework before submission. Presentations and subsequent discussions are delivered in a dedicated workshop. 1 Written exam 60% 3 Report 40% Country case study report 1,200 wordsFinal exam take home exam 2,800 words 24 hours via Blackboard Y Students are asked to read the latest ‘State of Commodity Dependence’ report published by the United Nations Conference on Trade and Development (UCTAD) in preparation for the course.· UNCTAD (various years) State of Commodity Dependence. <a href="https://www.un-ilibrary.org/content/periodicals/2663712x">https://www.un-ilibrary.org/content/periodicals/2663712x</a>Students will also benefit from accessing ‘Petronia’, an interactive simulation designed by the Natural Resource Governance Institute (NRGI) that explores the various policy challenges of a fictional country at the outset of oil production.· NRGI (2018) Petronia. <a href="https://petronia.games/">https://petronia.games/</a>Topic-specific readings will be made available before each lecture. The following references provide an overview of current debates around commodity dependency from different theoretical perspectives and will be referenced throughout the course.· Arezki, R., R. Boucekkine, J. Frankel, M. Laksaci, R. van der Ploeg (2018) Rethinking the Macroeconomics of Resource-Rich Countries. CEPR Press. <a href="https://cepr.org/publications/books-and-reports/rethinking-macroeconomics-resource-rich-countries">Open Access</a>.  · Nissanke, M., and G. Mavrotas (2010) Commodities, Governance and Economic Development under Globalization. Palgrave Macmillan UK. <a href="https://www.librarysearch.manchester.ac.uk/discovery/fulldisplay?docid=alma9930720294401631&context=L&vid=44MAN_INST:MU_NUI&lang=en&search_scope=MyInst_and_CI&adaptor=Local%20Search%20Engine&tab=Everything&query=any,contains,Commodities,%20Governance%20and%20Economic%20Development%20under%20Globalization&sortby=rank&mode=basic&pcAvailability=false">Available via the library.</a> Lectures 20 Practical classes & workshops 4 Seminars 10 0 110