Module Title: Microenterprise & Less Developed Countries

Transcription

1 Jack Igelman, Blue Ridge Cmmunity Cllege Curse Title and Number: ECO 251 (Principles f Micrecnmics, ECO 252 (Principles f Macrecnmics), r ECO 151 (Survey f Ecnmics) Mdule Title: Micrenterprise & Less Develped Cuntries Mdule Descriptin: The mdule will fcus n understanding micrfinance as ne way t develp small pls f capitals fr investment in pr cuntries r cmmunities. Students will als examine the cycle f pverty and traditinal theries f ecnmic develpment in less develped cuntries (LDCs), and the emergence f micrfinance. This mdule will allw students t experience being part f a micrfinance cperative. Mdule Cntents: Objectives Methdlgy Lessn Plan The ecnmics f develpment and less develped cuntries The basics f micrfinance The prject Evaluatins Bibligraphy and Websites

2 Objectives: T apply micr and macr ecnmic principles t real glbal prblems, such as pverty. T demnstrate an understanding f micrfinance and hw small lans can be managed t assist pr peple in develping natins. T have an understanding f quality f life indicatrs and ecnmic data in less develped cuntries and industrially advanced cuntries. T demnstrate an understanding f the cycle f pverty. T understand why sme cuntries are pr and sme rich. T understand the difference between ecnmic develpment and ecnmic grwth. T have hands n experience in a micrfinance cperative. T discuss what rle scial respnsibility shuld play in a market ecnmy. Methdlgy: Lectures and Discussin: Thrughut the semester this lessn invlves a prgressin f lectures and discussins n the creatin f wealth in pr and rich natins. Students shuld have an understanding f hw ecnmic, scial, and plitical institutins affect hw resurces, gds, and services are allcated in natins arund the glbe. The discussin f pr natins shuld include quality f life measurements and ecnmic indicatrs as cmpared t industrially advanced natins. Students shuld als have an understanding f the cycle f pverty, barriers t ecnmic develpment and grwth, and traditinal theries f ecnmic develpment. Readings: Several chapters frm a standard principles bk are relevant t the material. I have identified three chapters frm Macrecnmics (7E) by David Clander that I will use in my learning prgressin thrughut the semester. Instructrs shuld identify units in their text that fcus n LDCs, ecnmic plicy in LDCs, and a discussin f ecnmic systems and institutins. The fllwing chapters in David Clander s principles text are identified belw: Chapter 18: Macr Plicy in Develping Cuntries (Macrecnmics 7E, Clander) Chapter 8: Grwth Prductivity and the Wealth f Natins (Macrecnmics 7E, Clander) Chapter 3: Ecnmic Institutins (Macrecnmics 7E & Micrecnmics 7E, Clander) A lecture and discussin shuld als be included abut the histry f micrfinance as well as a discussin f what rle scial respnsibility shuld have in a market ecnmy..

3 Experiential Activity: This mdule includes an experiential activity where students participate in a micrfinance prject.

4 Lessn Plan: The Ecnmics f Develpment and Less Develped Cuntries As a hmewrk assignment, have students chse a less develped cuntry t investigate. Have them gather sme basic infrmatin abut the natin, such as: The natin s lcatin n a map. The natin s plitical and ecnmic systems and ther frmal and infrmal rules and institutins that affect ecnmic behavir. Ecnmic data, such as unemplyment, grwth in real GDP, per capita incme and inflatin. Cmpare this data t measures in the USA. Quality f life indicatrs such as literacy rate, life expectancy, and per capita energy cnsumptin. Cmpare this data t measures in the USA. Significant challenges/barriers t ecnmic develpment & grwth, such as law and rder, infrastructure, health, access t capital, r educatin. Have students reprt back t the class and debrief the activity. Discuss the difference between ecnmic develpment and ecnmic grwth. Prepare a lecture that discusses traditinal theries f ecnmic develpment and rad blcks t ecnmic grwth and develpment. Cnsider watching this shrt vide in class frm earth.cm The Basics f Micrfinance Ask student t find a current events article abut Muhammed Yunus, the funder f the Grameen Bank and winner f the 2006 Nbel Peace Prize. Discuss his ideas and the develpment f micrfinance. Discuss the 16 principles and the verall missin f the Grameen Bank Discuss a case study f hw a micrfinance cperative wrks. Explre the use f micrfinance glbally and in the United States

5 The Prject This ptinal prject can be a semester lng prject r can be cnducted in a single day depending n the aim f the instructr. Divide the class int grups f 4 r 5 students. One grup will becme the micrfinance cperative (the lender) and the ther grups will becme micrenterprise develpers. Each micrenterprise grup will decide n a small mney making business that culd be realistically perated n campus. Each grup will develp a business prpsal and submit an applicatin t the micrfinance cperative. After the plans have been submitted, the cperative will decide hw t allcate the available funds. The cperative will have $100 (using real mney is ptinal!) that they can award as a lan t the mst viable business plan. The cperative will chse the mst viable business plan and award that grup up t a $100 micr lan. A cntract will be drawn up and the mney allcated. Yu may cnsider allcating real mney and allwing students t develp the mst viable business plan. Once the mney is allcated, the micrfinance cperative will audit the peratin and the class will then fcus n implementing the business plan. The lan must be repaid by the cntract due date and all prfits will be returned t the instructr and dnated t a micr lan rganizatin, such as Kiva.

6 Evaluatins: End f Mdule Evaluatin Individuals shuld reflect n what they have learned abut micrfinance, ecnmic develpment in pr natins, and the dynamics f wrking with classmates in a grup setting using the fllwing mdule end evaluatin. The first semester data can be used as a baseline t measure the effectiveness f the lessn ver time. Evaluatin Item I enjyed wrking as a team with ther students Students shuld rate the statement n a scale f being I strngly disagree and 10 being I strngly agree. I can explain the cycle f pverty I can explain micrfinance and cmment n the value f micrfinance I can explain traditinal theries f develpmental ecnmics I understand the difference between ecnmic grwth and ecnmic develpment. I can make sense f measures f ecnmic develpment, such as per capita GDP, % grwth f GDP, inflatin rates, and unemplyment rates. I can make sense f measures f quality f life indicatrs such as literacy rates, life expectancy, and per capita energy cnsumptin. I can cmment n the rle f scial respnsibility in a glbal, market ecnmy.

7 Start/End Mdule Quiz Instructrs shuld als cnsider delivering this quiz at the start f the unit and the identical quiz at the end f the unit. This will give students a tangible tl t assess what they have learned. Yu may cnsider adding mre questins. 1. What is per capita GDP in the USA? 2. What is the per capita GDP in Bangladesh? 3. What is the wrld s average per capita GDP? 4. Which natin is prest in the western hemisphere? 5. Where is the prest place in the USA? 6. What is the wrld s ppulatin? 7. Hw many f the wrlds inhabitants live n $2 per day? 8. What is the difference between ecnmic grwth and ecnmic develpment? 9. Hw wuld yu define micrfinance?

8 Bibligraphy: Clander, David. Macrecnmics, 7E. McGraw Hill, Clander, David. Macrecnmics, 7E. McGraw Hill, Friedman, Thmas. The Wrld is Flat: A Brief Histry f the Twenty First Century. New Yrk: L. Farrar, Straus, and Girux. New Yrk, 2005 Sachs, Jeffrey D. The End f Pverty: Ecnmic Pssibilities fr Our Time. New Yrk: The Penguin Press, Yunus, Muhammad. Banker t the Pr. New Yrk: Public Affairs, Websites: Micrfinance, glbal educatin, and ecnmic data websites inf.rg (Cnsultative Grup t Assist the Pr): Kiva a micrfinance website: Fr a series f case studies n develping natins and ther infrmatin abut teaching micrfinance: F433826F9AAE865DF48D8 Interesting vide t watch in class: earth.cm Ecnmic and Quality f Life Indicatr Data Wrldbank CIA Wrld Factbk

9 wrld factbk/ Ecnmist Magazine Cuntry Briefings