Learning Objectives:

1. Understand the distinctions and interactions between economic systems, institutions, instruments, the environment, and economic performance.
2. Understand the differences between classifications of economic systems based on ownership, coordination mechanisms, incentives, and objectives.

Discussion Questions

1. If the economic performance of a country is poor, can we conclude that the economic system in that country is at fault? Illustrate your answer with an example.
2. What are the major categories of economic systems when classified according to ownership? What are the strengths and weaknesses of using ownership as a criterion of classification?
3. Enumerate and explain the three categories of work incentives discussed in the textbook. Give examples of each.

Measuring National Income --Gardner, ch. 2, pp. 21-33-- outline 

Learning Objectives:

1. Understand the distinctions between GNP, GDP, and NMP
2. Understand national differences in the inclusiveness of measured national income.
3. Explain the three methods used for conversion of national incomes to a single currency for comparisons.
4. Define and explain the alternative HDI measurement of the standard of living.

Discussion Questions

1. What are the basic differences between GNP, GDP, and NMP? If a country has a large service sector and its residents derive a large amount of income from foreign investment, which of these national income concepts will make the country look largest in international comparisons?
2. In measurements of national income and product, what kinds of production are most likely to be excluded? Are these exclusions intentional? Are they similar in rich and poor countries?
3. In national income comparisons, what methods are used to convert the incomes of a number of countries to a common currency (such as the U.S. dollar)? What are the advantages and disadvantages of these different methods?
4. Explain the similarities and differences between national income and the Human Development Index. In your opinion, which of these should provide the more realistic comparisons of living standards?
   

Economic Development--Gardner, ch. 5-- outline  

Background: See this brief video about the book, "No One's World," by Charles Kupchan.If you have the time and interest, watch this longer video.

Also, see this presentation by Justin Lin on "New Structural Economics"

Learning Objectives:

1. Examine recent trends and projections for economic development, including the Millennium Development Goals.
2. Examine the major factors that have prevented economic development in the low-income countries.
3. Examine the major strategies and tools that have been used to support economic development, including policies of export promotion and import substitution, and programs of microlending.

Discussion Questions

1. What are several of the possible reasons for the long persistence of poverty in Africa, South Asia, and other low-income regions?
2. What role of the government in economic development is suggested by the theories of Adam Smith, Paul Rosenstein-Rodan, and Walt Rostow? What new approaches have been suggested by Jeffrey Sachs, Muhammad Yunus, and Justin Lin?
3. Explain the differences between import substitution and export promotion strategies of economic development, including their relative advantages and disadvantages. How is this issue related to the so-called Washington Consensus?
    

Learning Objectives:

1. Examine the historical development of EU institutions, and proposals for their future development.
2. Examine the purpose and objectives of the Single Market program in Europe.
3. Analyze the advantages and disadvantages of the single European currency – the Euro.

Discussion Questions

1. What were the views of Jean Monnet and Charles De Gaulle on European economic integration? What significance do their views have today?
2. According to the 1985 White Paper, what obstacles were standing in the way of a fully integrated “single market” in Europe? What actions have been taken to remove those obstacles?
3. What were the motivations for adoption of a single currency in Europe, and what are the possible costs? Do you think it is beneficial for Europe and/or the world?
4. What is the purpose of the Common Agricultural Policy in Europe, and what are its basic provisions? How has it changed in recent years, and how is it related to the enlargement of the European Union?
5. How is Europe changing under the Treaty of Lisbon?
6. What are the alternative futures for Europe, according to the National Intelligence Council?
    

Learning Objectives

1. Examine the historical development of the Social Market Economy model in Germany.

2. Examine the operation of German codetermination (employee participation in management).

3. Analyze the options that were considered and chosen for monetary unification and privatization when  Germany united during 1990.

Discussion Questions

1. What are the basic characteristics of the "social market economy" in West Germany? How did the historical legacies of Bismarck and Hitler influence its formulation?

2. In 1990, when Germany was unified, what options were considered for the monetary system, and what option was adopted? What were the arguments for and against the option that was chosen?

3. Describe the system of privatization used in East Germany. Discuss the advantages and disadvantages.

4. Describe the institutional framework and the practical significance of the West German system of codetermination.
    

Learning Objectives:

1. Examine why the Soviet Union adopted a system of central planning in 1928.
2. Examine the organizational structure that was developed to formulate and execute economic plans.

Discussion Questions

1. In Soviet central planning, what was a material balance table? Suppose that the table for ball bearings shows a deficit. What options are available to clear the deficit, and what problems are associated with these options?

Learning Objectives:

1. Examine how the plans for output, investment, and foreign trade were formulated.
2. Examine the price and incentive systems that operated in the planned economies.

Discussion Questions

1. How were investment decisions made in centrally planned economies? How does this compare with the methods used in capitalist countries?
2. "Centrally planned economies operated at a distinct disadvantage in an era of globalization."  Explain and discuss.

Learning Objectives:

1. Examine the factors that caused the end of the Soviet system, and their significance for transition to a market economy.
2. Analyze the strategic choices that must be made by countries in transition.
3. Examine the different programs of privatization that have been adopted in the transitional countries, and their relative merits.
4. Contrast the relative merits of “shock therapy” and gradual programs of economic reform.

Discussion Questions

1. What were the most important factors that caused the decline and fall of communism in Central Eurasia?
2. For countries that are making a transition from planned to market coordination, what are the arguments in favor of a “shock treatment approach and what are the arguments for a more gradual approach?
3. What major methods have been used to privatize firms in Central Eurasia? What are the advantages and disadvantages of these methods? How have privatization strategies differed between the transitional economies?
    

Learning Objectives:

1. Briefly survey historic and cultural forces that influenced the long-term development of the Chinese economy.
2. Survey the major periods of institutional change in China since World War II.
3. Examine the major economic and social reforms that have been introduced in China since 1978, and consider the changes that are still needed.

Discussion Questions

1. Before the fourteenth century, China had one of the most advanced civilizations in the world. What are some major factors that may have caused China to lose its advantage?
2. What were the primary motives behind the Chinese Great Leap Forward, and what were its major programs?
3. Survey the different systems of agricultural organization that have been used in China since 1949. What is the "family responsibility" or "land contract system"? How can we explain the initial success of this system?
4. How does the population growth policy of the present Chinese government differ from that of the Maoist regime?
5. What major commitments did China make during its negotiations for accession to the World Trade Organization?
6. What explains China's success since 1978? What major challenges is China facing, and how will these evolve in the future?