Rutgers University
Economics 01:220:362:01 (Spring 2013)
Comparative Economic Systems – Lower Level Elective Course
Lectures: Tues and Fri (12:35 – 1:55pm) (Loree 020, Cook-Douglas)
Instructor: Dr. Basanta Chaudhuri
e-mail: [email protected]
Office: New Jersey Hall (NJH-425)
Tel: 848-932-7363 (Dept Office)
848-932-8695 (NJH – 425)
Office Hours:
Tues 9-10am and Fri 2 – 3pm (Loree)
IMPORTANT: Read this syllabus very carefully. You are responsible for all information
and materials in it. Information on the Web: The Department of Economics maintains a
comprehensive web site at http://economics.rutgers.edu. This should be your first stop for
virtually all of your economics inquiries. On the web site you will find information about
the major, job opportunities, career choices, the faculty, library resources, and internet
resources. My web page is http://econweb.rutgers.edu/chaudhur. Log on to sakai for
important info on the class, announcements, posted materials, grades, etc.
Course Description
Course Prerequisites This course focuses on the nature of different economic systems,
different organizational structures/arrangements with varied policies in varied country
settings, and impact of these organizational differences on resource allocation, income
distribution and economic growth (i.e., focusing on efficiency, equity, growth, stability,
and sustainability) in an institutions-systems-economic outcomes framework.
Traditionally, the study of comparative economic systems has focused on a comparison
of market economy and planned economy. The collapse of the Soviet and neighboring
command economies and the process of transition to markets have broadened the focus of
this field to include mixed systems and systemic change. The focus of this course will be:
(i) the nature of economic systems; (ii) different economic systems (capitalism, planned
socialism and market socialism); (iii) systemic change; (iv) the worldwide performance
of different systems and the collapse of the command economies; (v) the process of
transition and the performance during the 1990s (the first decade and beyond) and; (vi)
assessment of transition and the performance of transition economies through 2010.
Course Prerequisites
Prerequisites are designed to protect you from taking courses that you are unprepared to
successfully complete. You should follow the recommended prerequisites closely. The
following courses are prerequisites for this course. You are expected to have mastered the
material covered in these courses before taking this course.
·
220:102, Introduction to Microeconomics
·
220:103, Introduction to Macroeconomics
Learning Outcomes:
In this course students will learn how to assess the relative efficacy of a
decentralized, market-based capitalist economic system and a centralized, non-market
socialist/communist economic system. Students will understand the key pillars of both a
capitalist system and a socialist/communist system. Students will be able to explain the
mechanisms of resource allocation, institutional arrangements, macro-stabilization
policies and income distribution in both a capitalist system and a socialist/communist
system. Students will also be able to articulate the various factors that contributed to the
breakdown of socialist/communist system in such countries as Russia, Eastern European
economies and former Soviet Socialist Republics.
Required Textbook
Rosser, J. Barkley and Rosser, Marina V. Comparative Economics in a Transforming
World Economy, 2nd edition, 2004 MIT Press (Rosser & Rosser or R&R)
(You may buy a paperback copy of the TEXT from e-Bay at a bargain price.)
Reference Books (optional):
H. Stephen Gardner, Comparative Economic Systems, 3rd, 2013, Routledge
(forthcoming but unpublished Chapters Notes from the author may be available at cost
price). (Note: Gardner’s 2nd Edition (1998) may be available in used book stores.)
David Kennett: A New View of Comparative Economics, 2nd Edition, 2004, Cengage
Paul R. Gregory and Robert C. Stuart (GS), The Global Economy and Its Economic
Systems, 1st Edition, Cengage, March 2013
I strongly recommend that you attend all lectures. My lectures will blend in materials
around the text and, therefore, attending lectures is necessary to keep up with the
materials and to deepen your understanding. Attending lectures is not a substitute for
reading the book, nor is attending the lectures sufficient to fully understand the material.
To get the most from this course you should both attend lectures and read the assigned
chapters. Unless you attend lectures on a regular basis you will miss relevant discussions
and materials covered in class and periodical announcements related to this course. You
cannot just send an e-mail to find out what is going on in the classroom.
NOTE: Rutgers has a Self-Reporting Absence Website (http://sims.rutgers.edu/ssra).
Students are expected to attend all classes. If you expect to miss one or two classes
because of illness or a family emergency, please use the University Absence Reporting
Website (http://sims.rutgers.edu/ssra) to indicate the date and reason for your absence. An
email is automatically sent to me.
Reading List (to be adjusted according to exam dates)
Table of Contents
I.
OVERVIEW OF COMPARATIVE ECONOMICS
1. How Do We Compare Economies?
2. The Theory and Practice of Market Capitalism
3. The Theory and History of Marxism and Socialism
4. Islamic Economics and the Economics of Other Religions
II. VARIETIES OF ADVANCED MARKET CAPITALISM
5. The United States of America: The Market Capitalist Leader
6. Japan: A Planned Market Economy with Traditional Elements
7. Whither Indicative Planning? The Case of France
8. Sweden: Crisis and Reform of the Social Market Welfare State
9. The Unification of Germany and the Unification of Europe
III. VARIANTS OF TRANSITION AMONG FORMER SOCIALIST ECONOMIES
10. The Former Soviet Union: The Myth and Reality of the Command Economy
and Russia's Economic Transition
11. Alternative Paths of Transition in the Former Soviet Union
12. Poland: The Peril and Promise of Shock Therapy
13. Hungary: Gradualism and the First Successful Completed Transition?
14. Worker-Managed Market Socialism: The Collapse of Yugoslavia and the
Success of Slovenia
9
15. China's Socialist Market Economy: The Sleeping Giant Wakes
IV. ALTERNATIVE PATHS AMONG DEVELOPING ECONOMIES
16. India: The Elephant Walks
17. Iran: The Struggle for a New Traditional Islamic Economy
18. Revolution and Reform in the Mexican Economy
19. North and South Korea: The Lingering Shadow of the Cold War
20. Evolving Trends of the Transforming World Economy
Course Requirements and Grades
Your grade in the course will be based on three exams (each weighing between 30-40%).
The dates for the exams are as follows (with weights in the parentheses):
First Midterm Exam
Second Midterm Exam
Final Exam
(Fri, March 1)
(Fri, April 5)
(Wed, May 15, 8-11am)
(30%)
(30%)
(40%)
Each exam will consist of 33-40-50 multiple-choice questions.
Exams are not cumulative but you must comprehend important terms and concepts
introduced earlier and have a good knowledge of it.
All exams are closed-book and closed-notes. You may be allowed to use a simple
calculator (if needed). You must have a #2 pencil to darken (‘bubble’) the SCANTRON
and a good eraser.
Note that there are no other extra credit assignments.
Make-up Policy: There will be no opportunity to make up an exam. However, for
emergency and special circumstances, alternative arrangements may be made based on
a valid document (doctor’s note, police report, etc.). Contact me immediately. Use
Rutgers self-reporting absence website (as cited above).
Grading Scale:
A (88 – 100%), B+ (85 – 87%), B (78 - 84%), C+ (75 - 77%), C (60 - 73%)
D (50 - below 60%) and F (below 50%)
Note also that grades are not available via the phone or e-mail.
Course Website – https://sakai.rutgers.edu
All course-related announcements, student version of lecture slides, reading assignments,
practice problems for exams, answers to exams, grades and other resources will be posted
on the course Sakai web site. Optional: Chat room and forum on Sakai are excellent place
to post and discuss questions.
Sample Questions in the Web (if available)
Many students find it useful to review questions available in other web sites. I will refer
to those web sites where several sample questions are available for your review.
Re-grade Policy
All requests for re-grades must be submitted in writing within 7 days of the date when the
exam is first returned to the class. Except in the case of mistakes in addition, I reserve the
right to re-grade the entire exam if it is submitted for a re-grade.
Academic Honesty
Cheating is totally unacceptable and highly risky for your academic life/career. The
University has established rather severe penalties for cheating. You are strongly advised
to review Rutgers' policies on cheating (read the Undergraduate Catalog).
Students must turn off all electronic devices during lectures/exams/quizzes
(cell phones, beepers, i-pods, i-phones, smartphones, and other devices).
IMPORTANT DATES of SPRING 2013
Spring semester starts January 22 (Tuesday)
Spring Recess (Sat, March 16 – Sun, March 24)
Last Day to Drop with a “W” (Monday, March 25)
Last Day of semester: May 6 (Monday)
Reading Days May 7-8 (Tues-Wed)
1st Midterm (Fri, March 1), 2nd Midterm (Fri, April 5)
Final Exam (Wed, May 15, 8-11am) (Note: I give a 2-hour (not 3-hr) final exam)