Development Economics Koichi Fujita Professor (Economics) CSEAS, Kyoto University, Japan kfujita@cseas.kyoto-u.ac.jp

Brief self-introduction Born in 1959; 51 years old. Graduated from the Univ. of Tokyo, Dept. of Agricultural Economics (Faculty of Agri.) in 1982. MSc. in 1986 and Ph.D. in 1992 at the University of Tokyo. Research Fellow, National Research Institute of Agricultural Economics (1986-1995) Associate Professor, the University of Tokyo (1995-1998) Associate Professor and Professor, Center for Southeast Asian Studies (CSEAS), Kyoto university (1998-the present)

Experiences in abroad 1992-1994; Two years 2000-2001; One year JICA expert (Rural Development) in Bangladesh 2000-2001; One year JICA expert (Advisor, Agriculture) in Myanmar 2004; Six Months Director, Bangkok Liaison Office, CSEAS, in Thailand 2010; Three Months Visiting Professor, AIUB, in Bangladesh

Research Fields Agricultural Economics, Development Economics, Rural Sociology Agricultural and Rural Development in Bangladesh, India, Myanmar, Thailand, Laos Major topics at present 1) 20 years’ rural changes in Bangladesh 2) Poverty alleviation programs in tank- irrigated rural areas in Tamil Nadu, India 3) Migrant laborers from Myanmar to Thailand 4) Village banks in Laos 5) Agricultural and rural development in Myanmar 6) Comparative study of rural social structure in Asia

Program of ‘Development Economics’ 24-May (Mon) Introduction 26-May (Wed) Development and Development Indicators Diversities among Developing Countries 31-May (Mon) Population and Development 2-Jun (Wed) Transformation from Agrarian to Modern Society Dual Sectors Development Model ‘Ricardian Trap’ and the Role of Agriculture 7-Jun (Mon) Modernization of Agriculture

Continued 17-Jun (Thu) Migration and Urbanization 21-Jun (Mon) Poverty and Inequity Poverty Alleviation Policies and Programs 8) 23-Jun (Wed) Human Capital: Education and Health in Development 24-Jun (Thu) International Trade, Foreign Direct Investment and Aid in Development Mid-term Examination

Continued 10) 5-Jul (Mon) Economic Development in Bangladesh (1) GDP growth, Industrial structure, Employment structure, Green Revolution, Changes in export structure 11) 7-Jul (Wed) Economic Development in Bangladesh (2) Poverty, Real wages, Inequality, Social development 12) 12-Jul (Mon) Economic Development in Bangladesh (3) Macroeconomic indicators, Governance 13) 14-Jul (Wed) Economic Development in India 19-Jul (Mon) Economic Development in China

Continued 21-Jul (Wed) Presentation by students and discussion 16) 26-Jul (Mon) 17) 2-Aug (Mon) 18) 4-Aug (Wed) Final Examination

Important points when learning Development Economics (1) Development Economics itself may be simple, but the actual development process is much more complicated. Because, development process involves not only all spheres of economy (macro-economy, agriculture, industrialization, labor market and migration, urban informal sectors, trade, foreign capital flow, banking sector, financial policy, fiscal policy, exchange rate policy, etc.) but also society and politics. Without having a wider perspective, development cannot be understood. Two types of social science: positive and normative Both are necessary for development economics.

Important points when learning Development Economics (2) History matters!! We can learn a lot from the historical development experiences of the ‘developed countries’. At the same time, there are many different conditions to which the contemporary ‘developing countries’ are facing. And, there are interactions between ‘developed’ and ‘developing’ countries, which affect the development path of both countries. Lastly, there is usually a ‘historical path dependency’.

The secrets of Japan’s economic success: Historical Perspective (1) The first half of the Feudal Era (1192-1573) 380 years The second half of the Feudal Era (1573-1868) 300 years The Modern Era Until the end of WWII (1868-1945) 80 years After the WWII (1945-2010) 65 years The turning point was the second half of the Feudal Era Separation of soldiers (Samurai) and farmers Village residents became only farmers, who are homogeneous Soldiers (Samurai) get tribute (paddy) from farmers, based on land measurement and registration scheme. Tribute was collected not from individual farmers, but from the village as a whole.

The secrets of Japan’s economic success: Historical Perspective (2) Transformation of family system to patri-lineal stem family. Only the eldest son can inherit family’s property. All the landless households became tenants without landless labor households. (Establishment of ‘peasant society’) Village became highly self-governed and autonomous, with strict regulations like ‘gram sarker’. However, village could only be stable with a proper government by feudal local authority ‘Industrious revolution’ Increase of working days and labor intensity Farm households doing farming and non-farm activities Development of indigenous technologies Labor intensive but with rising labor productivity

The secrets of Japan’s economic success: Historical Perspective (3) Organization of large private enterprises became similar with the structure of villages. Egalitarian, but with fierce competition inside the organization Emergence of strong agricultural cooperatives, based on the villages Creation of efficient and honest bureaucracy Strong creditworthiness between the government and the people