Lecture 1: Introduction to Development Economics

[@summatim]

0:15: Introduction 1:51: Course Structure 2:28: Lectures and Recitation 2:36: Reading Papers 3:28: Problem Sets 5:15: Research Proposal 5:32: Course Audience 8:04: PPP Adjustment 12:19: Richest Countries in the World 14:30: Poorest and richest countries 16:28: Income and well-being outcomes 26:05: Differences in growth rates 27:27: Geopolitical news for emerging economies 38:23: Global Welfare Improvements 43:11: Development Accounting 44:27: Explanation of cross-country data 44:54: Revision of cross-country data 46:23: Factors that explain growth 49:23: Variation in macroeconomic policies 50:42: Issues with growth regression 53:04: Inability to explain economic growth 53:52: Assumption of aggregate production function 55:53: Variation in return to investments 58:11: Trust as a factor in investment 58:25: Imperfect market for capital 59:45: Factors contributing to productivity differences 60:18: Poverty trap 68:56: Human capital 69:59: Labor markets, land markets, and credit 70:12: Public sector

[@blessed_lana6965]

Thank you

[@shivgila5016]

Thank you ❤

[@KK-ej9bw]

Thanks a lot!

[@marcuscannady]

You're the real MVP

[@indonesia-romasadisaputra3214]

What a luxury opportunity to be taught by one of prominent scholars in development economics, thank you MIT for this open course

[@SilvanaBuilesG]

so happy to see the updated version of this amazing course!

[@chetanpandore]

I'm a Mechanical Engineer and a Maths Teacher and I've recently developed interest in economics and businesses. This lecture was a great opportunity to learn for me from Esher Duflow and Abhijit Banerjee are Nobel Prize 🏆 winner couple in Economics. She is working leading a team which includes Raghuram Rajan of economist to implement the bottom up economic model with Tamil Nadu government. Trickle Down economics is a scam to keep rich richer and poor poorer. This women with her husband has turned out this scam upside down. Hats off to her.

[@kyanjowilliam9819]

U want to actually learn economics, go n watch Anwar Sheikh, thats the real economics, u will thank me later

[@கோபிசுதாகர்]

Tamil Nadu government is DMK fraud government.. they will make schemes of corruption.. hide 30,000 crores in offshore accounts in the name of Sabareesan and PTR.. How to steal from tamil nadu people.. DMK knows that very well

[@hotbuzz5325]

Very well said

[@hotbuzz5325]

@@kyanjowilliam9819 Now you will cook up your own definition of what is real and what is not? This is real economics with real impact and policy implications.

[@kyanjowilliam9819]

@@hotbuzz5325 i am not the one who callls it real economics anwar sheikh does n i think he is right, please, watch him, u will see the difference

[@ADB3773]

00:05 Introduction to the core topics in development economics 02:28 Lectures and recitation schedule 07:04 Difference between gross national income and GDP 09:35 The challenge of comparing standard of living between countries 15:08 Income differences of one in 200 matter for well-being outcomes 17:30 Disparity in under-five mortality rates compared to GDP per capita 22:43 Poor countries face challenges in accessing funds for stimulus measures. 24:50 Difference in GDP and growth rates have significant impacts on countries' ability to support citizens during crises. 29:25 The income of people in the bottom percentiles has seen significant growth, mainly driven by China and India. 31:33 Rapid progress in global development and challenges ahead 35:56 Government's loss of ability to measure poverty due to reliance on private companies for survey data 37:56 Poverty's impact at individual and country level 42:08 Understanding the factors behind income differences in development economics. 44:14 Initial optimism in using capital and enrollment rate data to explain income per capita difference 48:25 Development economics involves compensating for geographical disadvantages and considering macroeconomic policies 50:41 Challenges in interpreting the effects of various policies on economic development 55:02 The return to capital and human capital varies greatly within economies. 57:16 Local boys in Tirupur have lower return to capital compared to people from other towns. 1:01:25 Introduction to the public sector 1:03:51 Understanding the concept of poverty trap and its impact on economic development. 1:08:40 Key factors contributing to poverty traps. 1:10:39 Wishing for an excellent semester

[@shoaibkahut]

ECON student from #China here. Thank you #MIT for making these lectures available here.

[@AmitKumar-wf4ly]

You look like Pakistani, never knew Chinese look like this as well😂😂😂😂😂😂😂😂

[@ZainKhan-sm8gr]

​@AmitKumar-wf4ly that's a pretty snark remark.. you can easily infer that what he meant was that he was studying economics in China.

[@Asteria_Inc]

Professor Duflo! Awesome! Thanks Mit opencourse to make this available for people couldn’t make to MIT!

[@OupaModiko]

I am Jacob from South Africa and really appreciate this open course offered.

[@TheSuperZufan]

Thank you for posting this lecture. This was an excellent introduction to Development Economics. This lecturer did a great job breaking down a very complex field of study and made it easy to understand. I hope all her lectures are published on this platform.

[@Faisal-jr7eu]

Thank you Prof. Duflo and MIT for this treasure! Great learning while at home in the other side of the world. Much appreciation from Saudi Arabia 🇸🇦

[@musakhanmedicalenginee890]

Finally got your lecture, ❤ I has been waiting.

[@0x90meansnop8]

Computer Scientist here. Looking forward to watch this course. Hope it is fun! Thanks for uploading

[@coder_rc]

Hi NOP, I'm 0xCC means INT3

[@tzachs_]

MIT pls add course 14.02 : Principles of Macroeconomics

[@Er.Sunil.Pedgaonkar]

Infrastructure Development is one of main issue related to Development Economics. Roads,Streets,Water Supply,Electricity,Public Transportation (Buses&Trains,Metros), Gov't Public Hospitals,Sanitation,Hygiene, Gov't Low Cost Houses for poor, Generation of Local Employment or jobs,Public Schools, Colleges & Universities,Jobs for all, Agro based industry,promotion of home & micro industries etc.are imp

[@Franklin2027a]

她是2019年的诺贝尔经济学奖的获得者. MIT的学生太幸运了. 我感叹教育资源的不平均; 也感叹互联网让学习变的容易

[@Claudia-yd3dd]

Please MIT, offer more Open courses, Spread your brilliant knowledge, thank you, Greetings from Germany

[@Mohankumar-cy2cm]

I want to say something about 1.09. The ability of 5th Standard students to study 2nd standard text depends on many things. It may vary from State to State. There are more than 25 states in India. Even within states, it may vary from town to town. Private schools are situated in urban areas. Government schools are situated in rural areas. The lifestyle of the students living in urban areas and those living in rural areas is entirely different. For example, a town child may spend extra hours studying whereas a poor rural child, especially a girl child, has to take care of many other things. So this difference. There is one paradox. In Tamilnadu, ( a state in India)the government spends more on health, education, and library. However, people will prefer private schools, private hospitals, and even private libraries. This is not related to quality. Government hospitals can perform heart surgeries at the cost of free. A student need not spend a single penny on government school. Still, people prefer private.

[@NaveenKumar-je4sz]

Dear MIT Opencourseware, please add updated class od FINANCIAL ENGINEERING, PORTFOLIO MANAGEMENT etc related to Finance

[@KelvinMwakyembe]

How can I know it in swahili

[@nawazeeshali4340]

This was brilliant, truly amazing, you are explaining the concepts so well.

[@endgamefond]

Dear MIT could you please use the Dub feature from KZbin like Lex Friedman has. I am struggling with the accent.

[@aneeamahmood7988]

Hello I'm from Pakistan 🇵🇰 And I watch your MIT open lecture Amazing

[@LearningEconomics]

I'm also from Pakistan. This is really a great opportunity for the people living in LDCs like Pakistan

[@shankchud12]

Western education is haram in islam

[@Mohankumar-cy2cm]

Waiting for this very long time. Welcome madam

[@besthopes123]

7:18 Isn't it supposed to be Gross instead of Growth?

[@Tresorthas]

13:37 Macao and Bermuda are not countries though. Macau is a "special administrative region" of China, and Bermuda is a British overseas territory.

[@romiandimedia-putra4955]

What is aggregate income? Gini variable, GDP, hunger people is every where from macau to africa, modern city is every where, but slum spot is also there

[@nitinshukla7047]

Wondering if we ought to read any paper as a pre-read for next lecture. There were many papers discussed, reading them all may take time 😅

[@amandaz2804]

Macau is not a country...if you can compare Macao with other real countries by definition...then you can also compare Shanghai, Shenzhen, Hangzhou, Beijing assuming they are little countries..

[@gavindoe3812]

Opening the 26 Multi Storey Casinos in Singapore within 1 year. Increases GDP & GNP in the Economics, Econometrics of the country. { Li Hongyi & family} /// Bachelor degrees in Computer & Economics

[@myselfsindhu]

I am studying in MIT. What a privilege.

[@anomalous_anujj]

Hi , I am there too ..lets meet

[@amritsharma5373]

Interesting!! Had read her book, "Poor Economics." A good read!!

[@fernandocortes1187]

12:10 countries with the most GNI 13:03

[@abhisheshmishra3907]

Thankyou so much ma'am very interesting lecture love from India 🇮🇳🇮🇳

[@doellison]

so it is a perpetual argument on how to best do PPP?

[@yapadqoi]

What a chance be taught a course by a nobel prize winner

[@Philover]

I have seen this powerpoint format in other presentations and I am just wondering, can't there be a variation in this? Everyone's using the same format...this is not to badmouth the presentation itself, just a simple comment

[@djamestersimarrmata2998]

Thanks for this interesting course offered by MIT as a public goods or services. I haven't followed the whole presentation. Really I would like to find out, how to finance development in DCs. The existing theory proposes by saving, or if not, to borrow from foreign countries or from international institution. How is about using the so called "forced saving"? In 2008, Bernanke at that time complained the "abundant of saving" in China, leading to global very low interest rates. In fact, what was done in China was the "forced savings", not real savings out of the country's real income.

[@jiyoungpark6233]

oh, thank you, for the good lecture that's wonderful from my experience, even if the basket is small, i can get enough quality of goods, relevant to a big basket

[@AlAmin-uc8py]

Awesome lectures.❤❤

[@JohnSmith-fi7ir]

Hi everyone! How this course is called?

[@mitocw]

The course is 14.771 Development Economics, Fall 2021. The course materials can be found at: ocw.mit.edu/courses/14-771-development-economics-fall-2021/. Best wishes on your studies!

[@rajvirsingh1370]

​@@mitocwplease upload Advanced Macroeconomics lectures series.

[@OzilNasir]

Here from Erhiopia Thank Mit open

[@soiloveme9441]

Can you earn a certificate for this course?

[@mitocw]

MIT OpenCourseWare does not offer certificates. This course has been on MITx in the past (which does certificates). See mitxonline.mit.edu/ for more info. Best wishes on your studies!

[@TheAmazingSpider-Man1]

She seems to have a French accent ?

[@willdeandre9375]

Insightful

[@Sp-zj5hw]

You should call Yanis (with one n) Varoufakis, to teach you how to develop countries.

[@aneeamahmood7988]

In you tube a lot of lectures and chennal but your chemistry and biology lecture is 👍👍👍👍

[@jinnam6822]

thank you

[@jhonenriquearuhuancavargas5689]

Very Good Lecture.

[@sitrakaforler8696]

Dude it’s been 60 secondes and they already have 3likes 😂 Also: this course sounds promising !

[@Otto-mq8lg]

Alcohol, tall, care, air fair, people, meat, national mall, guest, warcraft, slap, map, aloha, wormhole, lost soul, phone call, what sea-pho?

[@suindude8149]

Inspite of the ardent try of the academic arena it is found that every place in India is getting doomed,its been observed since the posterior end of Covid so vehemently.Hence,it is really of obviousity something really wrong or irrational system works under this macroeconomically which is the factorization of causes of the expectation function of the economy in probabilistic sense.A great thwarting agenda of deprivation lacking proper monitoring is also macrogenic. We should be more profound to grapple all the factors to develop ourselves to be the utmost,as micro economy is concerned it is substantially governmental arena to substantiation.

[@StarSystem-p3i]

좋은 강의입니다

[@lonnybulldozer8426]

Disturbing much?

[@personaledition8130]

Girroz di'metal

[@hctech8451]

Great teaching

[@miriamlaker8037]

Concerned about using covid vaccine coverage as a poverty measure unless the numbers have been adjusted for the severity of the pandemic. The pandemic was mild in Africa, which affected the perceived need for the vaccine at individual and policy level.

[@glasser2819]

merci madame: brilliant 👏

[@harveerbrar6298]

Big Thank you for video

[@alaminhossain9803]

Ester is a renowned researcher in development economic. But i would like to say, with my utmost respect toward her, her lecture is too much obscure - accent is not clear, and she switches to another sentence promptly without finishing the full sentence.

[@ashimchatterjee8557]

It is not obscure. Development Economics is not for everybody. You need to pull yourself up nt her down.

[@alaminhossain9803]

@@ashimchatterjee8557, did you understand of what i meant?

[@ashimchatterjee8557]

@@alaminhossain9803 It is to understand what u meant. I am saying that you are wrong.

[@marlondelrosario635]

Gibberish

[@miguelangelmartinezaguinag9953]

Yes! She's "Speaking French" In English!!! I mean, she structures the Phrases in French! Using English!!!

[@heramb575]

42:43

[@Heloobehappy]

What accent? Russian or German

[@loodi3138]

French

[@ashimchatterjee8557]

You are commenting on the quality of a MIT professor whois also a Nobel Prize winner. What makes you think you are qualified to do so ?

[@moisesespiritosanto2195]

Hi, I'm from São Paulo!

[@shekharsuman5106]

Be happy mam

[@隆二野呂田]

Why speakers put off mask? Why when don't speak ,put on?

[@mitocw]

Pandemic teaching guidelines under effect. The instructors are allowed to remove their mask for teaching the class as long as they are at least 6 feet from other people (who are masked). If there were multiple instructors, only the one speaking was allowed to have the mask off.

[@حمزةمصطفى-و7ل]

We stream Lee like ❤this course is we wish hello, such as courses and lectures by economics

[@indiantraveller194]

Very niece lecture maim🇮🇳😘

[@howardstark8150]

No, the reason you can aggregate this is because economists think they can aggregate individual demand curves and not get weird equilibriums, sureee

[@divith7564]

I don’t study econ but damn she looks strong

[@ashinfinitemiles]

And she is a nobel laureate if you don't know

[@divith7564]

@@ashinfinitemiles well duh cuz she's strong

[@faym__]

Nice work

[@Mohankumar-cy2cm]

Tirupur is my hometown.

[@Isla-ey7my]

My jaw dropped, I thought MIT would have professors with at least intermediate English pronunciation. I cannot understand her speech at all. I am not disappointed with her knowledge, although the barrier to communicating it. 😮

[@midshipsport]

Book smarts. Not business savvy.

[@luisfelipeossani4866]

Great!

[@ArjayMartin]

People in Burandi own their own homes, and land, without bank loans... so Wealth PPP adjusted makes more sense... and the West will drop down the ranks.

[@TheWhitehiker]

Not hearing much about the beneficial effects of capitalism here-- ideological reasons?

[@abelabel4151]

à 19:53 mais pourquoi vous avez couper le sahara marocain du reste du territoire marocain?? je vous invite à venir visite le maroc et surtout le sud marocain. vive le sahara marocain. je vous rappelle que les tirailleurs marocains sont mort pour la france durant les deux guerres. le maroc a soutenue les français contre les separatistes corses et basques et surtout contre les nazis. alors on invite les français à soutenir le maroc contre les separatistes du polisario armés par l'algerie et qui se sont retranchés dans la ville de tindouf actuellement ville algerienne et autrefois ville marocaine.

[@Candy10022]

So funny, she excludes "petro states" from the PPP list and then names Norway at the top of the list. So amazing how naive Europeans can be, she just can't imagine that Norway is a "petro state". The income and wealth of Norway is basically entirely built on oil and gas, kinda like Saudi. She also first explains how PPP is in practice literally a completely impossible factor to measure, which is correct, and then she decides to use it anyway. I agree that the PPP measure in theory makes 100% sense, but in practice it is a complete mess with massive political pressures involved and just really hard to measure. When I go to a poor country and eat a shitty steak at 30% of the price of an excellent steak in a developed country, then the PPP measure for this is 70% cheaper than the steak in the developed world? lmao.

[@freyc1]

The part of PIB related to petrol in Norway is not even close to the numbers for Saudi Arabia. Even today, when Saudi Arabia has developped other sources of income, it is at least four times as much.

[@Candy10022]

@@freyc1 Ok, lets remove all the income from exporting oil and gas from Norways books and society ... If not a big deal, let them just stop the export of oil and nat gas ... FYI … both Saudi and Norway have oil and nat gas exports of between 70% and 80% to total exports … and also norways oil and nat gas industry was about 20 percent of its 2021 gdp … and for Saudi it was 23.7 percent of its 2021 gdp … I completely agree … Norway doesn’t even come remotely close to Saudi … lmao …

[@archeacnos]

When you're French and you find this

[@lejamesbron4055]

Her accent is so strong

[@Followmybliss777]

save your money the world is fucked there’s no hope the rich will kill us all

[@student69741]

Sounds like a failed product of the capitalistic society

[@Foggydew931]

I thought this was home economics 😢

[@MrJONES925]

Is she speaking English ? How can you learn from someone you can’t understand

[@khadim1875]

Ester fait un petit effort sur l'accent stp 😆😆😆... les français , mdrr

[@KsK-p7o]

💖❤️💖

[@antoniobragancamatarazzo8900]

Is she German? She speaks like German accent. Awesome class. I like it. Congrats

[@miguelnuno928]

She is French

[@antoniobragancamatarazzo8900]

@@miguelnuno928 Thank you so much for your answer

[@ArjayMartin]

Again, a fallacy. The Rich countries 'spending' on CoViD includes the billions of dollars of donations for the "Poor" countries... so the poor countries need spend less since 'free free free'... and the rich countries paying more, since paying for the poor countries.

[@abhijeetkushwaha424]

Woohoooooooo!

[@EvgenyTalantsev]

Hands need to be better managed.

[@hassanmirza2392]

When will you condemn Israel for its war crimes? How about bringing development to Palestinians.

[@opiaetus1061]

This professor sure is good meat for the dragon. Good bye.

[@Chiavaccio]

👏👏👏👍

[@ThunderKat]

Why would you hire a french-english teacher for something as common as Economics? Or is this some sort of advance thing you only learn in France?

[@Trickyclick]

They didn't hire her from France, you ignorant douchebag. She is a 2019 Nobel Laureate in Economics who completed her Ph.D from MIT in 1999 & has been associated as a Professor with them ever since. She's working there because she is absolutely brilliant & the best at what she does.

[@Max_-lo7js]

Esther Duflo holds a Nobel Prize, she is an expert in the field.

[@student69741]

Because there are specialists for everything and she is one of them.

[@கோபிசுதாகர்]

are you freaking kidding? She is a nobel prize winner!! and you're concerned about her accent?? lolol

[@ashimchatterjee8557]

Change the spelling of your name to Thunder Cat.

[@emmanuelwood8702]

Her accent is so heavy .

[@userre85]

Soothing accent

[@KK-bz9yp]

I wouldn't believe that the quality of a lecturer at MIT is that low.

[@Trickyclick]

The fuck are you saying? She is the recipient of the 2019 Nobel Prize in Economics. You can only dream of having someone like her teach you.

[@SubodhKhanal]

She is a Noble Laureate you dumbass.

[@I_Lemaire]

She's a Professor and I am sorry you are too obtuse to appreciate her.

[@cynic6974]

If you think verbosity is the benchmark of quality, then you are at the wrong place.

[@izzyc1570]

I thought this comment was joking (she has a Nobel Prize). But now I’m confused by the replies 😅

[@josephdavis1087]

I guess you get what you pay for because i genuinely can’t understand a single word she saying lol

[@edenalmakias817]

Economics is mostly propaganda

[@JerrySeriatos]

Each factor is optimized? Another assumption? I do not see any mention to national IQ as a predictor to economic development

[@thecafcl8409]

IQ = education, health and nutrition

[@JerrySeriatos]

@@thecafcl8409 and race/genetics first of all

[@namxuan6665]

hidemyacc

[@Tamba-qf6jk]

Thanks for the lecture, it was so educative and it will help some of us from developing countries to re-shape our mind set and also help those who are finding economics as a subject difficult.