Capitalism & Freedom Ideology Started with Milton Friedman & The Chicago School of Economics The most influential schools of thought in 20 th Century Economics Development Key principle Free markets are the institutional guarantor of choice, opportunity, and limits on government control over people’s lives. Free Market Economies lead to societies that have the freedom to choose BUT has resulted in Greed & Power, Great divide between haves and have-nots The Shock Doctrine (Naomi Klien) (Trailer 1.46 m)

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Economic Development aiming for Open & Free Societies Amartya Sen (Harvard Uni) welfare economics, social choice theory, economic and social justice, economic theories of famines, and indexes of the measure of well- being of citizens of developing countries indexes of the measure of well- being of citizens of developing countries. Long-term development flourishes in open societies, where governments allow their citizens the right to inquire into anything, speak freely and stand up for their rights. Without openness and liberal values, long-term prosperity is doomed. The End of Poverty? Trailer (3 min) In today’s Globalised world, we need to look at a different model of economic growth

Development Approaches 1.Natural endowments 2.Innovation & entrepreneurship 3.Education 4.Infrastructure Some of World Bank’s Development Approaches Governance & Anti-corruption Governance & Public Sector Reforms Poverty Reduction Community driven development Mainstreaming Gender Empowering the poor Participation & Civic Engagement (World Bank, 2011)World Bank, 2011

Questions & Discussions 1.Amartya Sen argues that a country’s development should be broaden to include just more than economic development. What other factors does Sen think should be included in an assessment of development? How might adoption of Sen’s views influence government policy? Do you think Sen is correct that development is about more than economic development? Explain 2.What is the relationship between corruption in a country and economic growth? Is corruption always bad? 3.What is a country’s legal system? Why is it important to international business? Compare and contrast the 3 main types of legal systems in use around the world. What implications do each of these raise for international business? 4.Japan Case: a)In the 1980s Japan was one of the world’s most dynamic economies. Today it is viewed as one of its most stagnant. Why has the Japanese economy stagnated? b)What lessons does the history of Japan over the last 30 years hold for other nations? What can countries do to avoid the kind of deflationary spiral that has gripped Japan. c)What do you think would be required to get the Japanese economy moving again? d)What are the implications of Japan’s economic stagnation for the benefits, costs and risks of doing business in this nation? e)As an international business, what economy would you rather invest in, that of Japan or that of India. Explain.

Questions & Discussions 1.Amartya Sen argues that a country’s development should be broaden to include just more than economic development. What other factors does Sen think should be included in an assessment of development? How might adoption of Sen’s views influence government policy? Do you think Sen is correct that development is about more than economic development? Explain 2.What is the relationship between corruption in a country and economic growth? Is corruption always bad? 3.What is a country’s legal system? Why is it important to international business? Compare and contrast the 3 main types of legal systems in use around the world. What implications do each of these raise for international business?

Questions & Discussions 4.Japan Case: a)In the 1980s Japan was one of the world’s most dynamic economies. Today it is viewed as one of its most stagnant. Why has the Japanese economy stagnated? b)What lessons does the history of Japan over the last 30 years hold for other nations? What can countries do to avoid the kind of deflationary spiral that has gripped Japan. c)What do you think would be required to get the Japanese economy moving again? d)What are the implications of Japan’s economic stagnation for the benefits, costs and risks of doing business in this nation? e)As an international business, what economy would you rather invest in, that of Japan or that of India. Explain.