Why are some countries richer than others? Why have some countries experienced growth miracles while others have experienced stagnation of even growth disasters? Within developing countries, what does it mean to be poor? How to combat poverty? What are the challenges that the poor in developing countries face and what can be done to improve their living standards? This course intends to teach students what we know and what we do not know about these important questions and will focus on teaching students tools in understanding them. The topics covered will include explanations on why countries develop differently, the effect of geography, institutions, foreign aid, corruption and differential savings rates on the large disparities across countries. Within countries we will examine the role of education, health migration and credit markets in poverty alleviation. The course will cover both theory and empirical evidence but focusing mainly on how to conduct empirical analysis in understanding these important economic development issues.
 

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Explain key concepts and theories in development economics.
2. Critically assess different methodological approaches used in development research and policy evaluation.
3. Analyse the effectiveness of major development policies and interventions, drawing on empirical evidence from a range of country contexts.
4. Evaluate the roles of geography, institutions, and historical legacies in shaping development outcomes.
5. Apply development economics tools and evidence to real-world problems, demonstrating clear reasoning and an ability to communicate findings effectively.

Research-Led Teaching

Theory and examples covered in the course are derived from research in the field of economics.

Problem sets will involve toy examples similar to canonical models from research

In the typical class, we will discuss two research papers in depth: one, a group discussion, with everyone having been asked to read the paper in advance, the second, a presenter will be assigned to present the method and results of a paper and comment upon it.

Examination Material or equipment

If a computerised data-based empirical task is chosen to be conducted as part of the final examination, students will require a computer, and access to statistical software (Stata, R, or similar) to undertake the task. If pertinent, details including expectations and means of acquiring access to resources without-cost will be announced in class during week 10.

Required Resources

I will strongly encourage students acquire the following (since I will assign readings from it):

Banerjee, A. and Duflo, E., 2011, Poor Economics: A Radical Rethinking of the way to Fight Global Poverty, Public Affairs. (Also available as ebook at the ANU library)

Recommended Resources

The following can be used as references / additional readings for the motivated student, but will not be directly referenced in class.

Acemoglu, D. and Robinson, J., 2012, Why Nations Fail: The Origins of Power, Prosperity and Poverty, Random House. (ebook ANU library)

 

Diamond, J. M. (1997). Guns, germs, and steel : the fates of human societies. W.W. Norton & Co. (hard copy ANU library)

Collier, P., 2007, The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It, Oxford University Press. (hard copy ANU library)

 

Easterly, W., 2006, The White Man’s Burden: Why the West’s Efforts to Aid the Rest have done so Much Ill and so Little Good, Penguin Press. (hard copy ANU library)

 

Ray, D., 1997, Development Economics, Princeton University Press. (Introduction) (hard copy ANU library)

 

Sachs, J., 2005, The End of Poverty: Economic Possibilities for Our Time, Penguin Press. (hard copy ANU library)

These texts will be available in the library.

Staff Feedback

Students will be given feedback in the following forms in this course:

• written comments
• verbal comments
• feedback to whole class, groups, individuals, focus group etc

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). Feedback can also be provided to Course Conveners and teachers via the Student Experience of Learning & Teaching (SELT) feedback program. SELT surveys are confidential and also provide the Colleges and ANU Executive with opportunities to recognise excellent teaching, and opportunities for improvement.

Other Information

More technical details about this class will be provided in the Class Syllabus that will be made available in the first lecture. The Class Syllabus should be referred to for details on assessments and other class matters.

Early in the semester, I will make a decision about whether to replace one of the listed topics with an Econometrics Overview. The reason for this is that many of the empirical papers that the class requires you to engage with require a substantial knowledge of econometrics. At a minimum, students will be provided with the materials for self-study as helpful.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	History and Development
2	Institutions, Trade, and Geography	Student paper presentations start
3	Income Differences
4	Returns to Capital
5	Risk Sharing	Problem set 1 due
6	Household Economics
7	Human Capital
8	Corruption	Problem set 2 due
9	Reputation
10	Ethnicity and Culture
11	Migration
12	Gender	Student paper presentations end, Problem set 3 due

Tutorial Registration

No tutorial - third hour of lecture will be group discussions and presentation

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Problem Sets	20 %	*	*	1,4,5
Paper presentations and written summary	15 %	*	*	1,2,3,4,5
Final Exam	65 %	05/11/2026	09/12/2026	1,2,3,4,5

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines , which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Integrity Rule before the commencement of their course. Other key policies and guidelines include:

• Academic Integrity Policy and Procedure
• Student Assessment (Coursework) Policy and Procedure
• Extenuating Circumstances Application
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure
• Code of practice for teaching and learning

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the Academic Skills website. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Canvas’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Details on the delivery of this course and expectations of student participation are outlined in further detail on the Canvas course site. The third hour of each class will be discussion based and participation (and familiarity with required readings for these discussions) is expected.

Examination(s)

A final examination will be held, including a written component and possibly a computerised data-based component. The examination material of the final examination will be everything covered in the lectures (including discussion components). The written exam will be approximately 3 hours long. More details will be announced in class during week 10.

Assessment Task 1

Problem Sets

Students will be given 3 problem sets to complete during semester, due prior to class in Weeks 5, 8 and 12. Students will be required only to complete/submit 2 out of the 3 problem sets for grading, but are encouraged to attempt all and submit all. If all 3 are submitted, the two highest will be used for computing the overall course grade. If all 3 are submitted, and the lowest scoring is higher than the score on the final exam, this additional problem set will replace the score earned in the final exam pro-rata for 10% of the final grade.

(So for example, if a student scores 10/10, 9/10 and 8/10 in the 3 problem sets, and 30/60 in the final exam, the third problem set will count for 10%, and the final exam will receive 10% lower weight).

Because of concerns regarding modern AI and integrity of take-home tasks, each problem set will involve two steps:

(i) submission of written answers, used to verify satisfactory completion of all problems (or as many as the student was able to do)

(ii) a brief one-on-one oral/whiteboard demonstration where each student is given a problem (or component of a problem) from the problem set and asked to reproduce the solution on the whiteboard in person. This will take about 15 minutes, and students will be able to bring their written submission with them. The aim is for this process to demonstrate mastery/familiarity of how to solve the problem by explaining how to solve it, not rote memorisation. Grading will be conducted based on performance in the oral demonstration.

The oral demonstrations will be video recorded, which will enable later validation and verification of assessment if required (in accordance with point 7 in the ANU Student Assessment (Coursework) policy.

Grades will be provided within 2 weeks. Students will be given the problem set at least 3 weeks prior to the due date (however, material pertinent to some questions may not be discussed until 1 week prior to the submission deadline).

Assessment Task 2

Paper presentations and written summary

Students will be asked to give a 20 minute presentation and discussion of a specified research paper from the field of Development Economics, and then lead a subsequent 10 minute discussion. This will be supported by a writeup of approximately 1000 words that is due at the end of the week the in-class presentation occurs in. Grading will take both components into account, in the following way:

(i) The presentation will not be marked as a presentation per se. It will be used to give preliminary feedback, and provide a guide for what to focus on, improve, or tighten for the writeup (including writing about bigger picture questions like the implications of the paper's results).

(ii) The essay will be marked as the final product. However, since students will have submitted the physical slides and spent several thousand words (orally) explaining the paper in the presentation, it is not redundant - if the student explains a complex idea very well in their presentation they will not necessarily have to spend several hundred words of the essay explain it again (essentially, in marking the essay, I will recall mastery of the paper that was demonstrated in the presentation and will read the essay with this contextual understanding).

More details will be announced in the first week of class. Depending on class enrollment, each student will be encouraged to do this twice during semester.

If students are given two opportunities to present, the higher scoring attempt will be retained for the overall course grade. If multiple scores are earned, and the lowest scoring is higher than the score on the final exam, this lower scoring presentation/written summary will replace the score earned in the final exam pro-rata for 15% of the final grade.

(So for example, if a student scores 13/15 and 10/15 in 2 presentations, and 30/60 in the final exam, the lower scoring presentation will count for 15%, and the final exam will receive 15% lower weight).

Assessment Task 3

Final Exam

A final examination will be held, including a written component and possibly a computerised data-based component. The examination material of the final examination will be everything covered in the lectures (including discussion components). The written exam will be approximately 3 hours long. More details (including the date of the exam) will be announced in class during week 10.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. The University’s students are an integral part of that community. The academic integrity principle commits all students to engage in academic work in ways that are consistent with, and actively support, academic integrity, and to uphold this commitment by behaving honestly, responsibly and ethically, and with respect and fairness, in scholarly practice.

The University expects all staff and students to be familiar with the academic integrity principle, the Academic Integrity Rule 2021, the Policy: Student Academic Integrity and Procedure: Student Academic Integrity, and to uphold high standards of academic integrity to ensure the quality and value of our qualifications.

The Academic Integrity Rule 2021 is a legal document that the University uses to promote academic integrity, and manage breaches of the academic integrity principle. The Policy and Procedure support the Rule by outlining overarching principles, responsibilities and processes. The Academic Integrity Rule 2021 commences on 1 December 2021 and applies to courses commencing on or after that date, as well as to research conduct occurring on or after that date. Prior to this, the Academic Misconduct Rule 2015 applies.

 

The University commits to assisting all students to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. All coursework students must complete the online Academic Integrity Module (Epigeum), and Higher Degree Research (HDR) students are required to complete research integrity training. The Academic Integrity website provides information about services available to assist students with their assignments, examinations and other learning activities, as well as understanding and upholding academic integrity.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

Individual assessment tasks may or may not allow for late submission. For this class, only the written component of the problem sets and paper review task allow for late submission. Late submission is not allowed for the class presentation of the assigned papers nor the oral verification of problem sets. The policy regarding late submission is detailed below:

• Late submission permitted. Late submission of assessment tasks without an extension are penalised at the rate of 5% of the possible marks available per working day or part thereof. Late submission of assessment tasks is not accepted after 10 working days after the due date, or on or after the date specified in the course outline for the return of the assessment item. Late submission is not accepted for take-home examinations.

For other assessments:

• Late submission not permitted. If submission of assessment tasks without an extension after the due date is not permitted, a mark of 0 will be awarded.

Referencing Requirements

The Academic Skills website has information to assist you with your writing and assessments. The website includes information about Academic Integrity including referencing requirements for different disciplines. There is also information on Plagiarism and different ways to use source material. Any use of artificial intelligence must be properly referenced. Failure to properly cite use of Generative AI will be considered a breach of academic integrity.

Returning Assignments

Online 2 weeks after submission.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

None.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Accessibility for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents all ANU students