Inequality DevelopmentPolicy

3 Credits · Level: Graduate, Juris Doctor

This course will analyze the theory and practice of development policies in emerging markets in terms of their distributional impacts. This course will focus on within-country inequality (as opposed to between-country inequality) using multidimensional measures of inequality. Evidence suggests that high levels of inequality within countries continues to dampen growth, lower the growth-poverty elasticity, and fuel social and political discontent. The course would comprise of 2 introductory lectures followed by a set of 8 lectures on different development policies as follows: (i) and (ii) Introduction: Why Does Inequality Matter (definitions, evidence from emerging markets, implications); (iii) Trade and Exchange Rate; (iv) Monetary; (v) Taxation; (vi) Infrastructure, (vii) Health, (viii) Education, (ix) Social Protection (incl energy subsidies), and (x) Urban Development. The course will examine the theory behind the development policies, their actual versus expected impacts, and corrective policy measures to improve distributional outcomes. The course will promote an understanding of different aspects of inequality. It will provide students with analytical tools for analyzing impacts of selected development policy interventions on inequality of outcomes. It will draw upon international literature and country experiences including from the COVID-19 pandemic. The course would use interactive pedagogical methods requiring students to engage in classroom discussion and debates, mock negotiations with country authorities, and/or Ted-style talks and presentations. Students will also be expected to write two papers. These could be in the form of a memo for a senior policymaker (President, Prime Minister, Finance Minister or Economy Minister) making the case for specific policy reforms to obtain improved inequality of outcomes. The paper could also be in the form of a speech for the senior policymaker announcing a major policy initiative to the population.