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   Course Title    The Policy of Sustainable Development
Lecturer    Ginta Sabaite
Institution    Kaunas Technological University
Country    Lithuania


Students will be able to:

  • Understand how growth is defined and why it is important, to gain some analytical perspective on economic growth.
  • Show the interdependency between industry development and nature protection and to become acquainted with methods and ways of further development of these interdependencies.
  • Show that it is unavoidable to use all resources effectively.
  • Examine the controversy surrounding growth and policies that will promote growth.
  • Understand the interaction of the financial system and economic growth.
  • Make development planning issues and evaluate possible problems.
  • Discuss critical issues as unemployment, capital formation, technological growth, scarcity of resources, innovations, etc.


The cource "The Policy of Sustainable Development" is the core study of growth theories from different points of view: urban and rural development; interdependancy of growth and financial system; population problems, allocation of natural resources, capital formation, technical growth and innovations. The regional development policies include all these fields and they are developed in specific ways but match the overall policy. Other subjects in the regional development field cover specific topics of regional development and they must be understood in overall development policies.


  • Theoretical lectures – 32 hours.
  • Seminars – 4 hours. Students will read more on a particular topic and will write a summary with questions for discussion (3 – 5 pages). The presentation of the main ideas or findings and the discussion will follow during the practice lectures. The topics can be chosen from the course content. All summaries will be placed in the library and students will be able to read them when needed.
  • Case studies – 8 hours.
  • During the semester students will be required to prepare an individual survey. It may be group work on a wider topic as well, but the independent work should be stated clearly in the introduction. The main ideas of the survey will be presented and discussed during the practice lectures (4 hours) at the end of the semester. All topics should be agreed opon with the lecturer.


1. Introduction to development studies : the main concepts, the principles of sustainability.

2. The theories of economic growth : the linear stages theory, structural-change models, the international-dependance revolution, the neoclassical counterrevolution, the new growth theory, the principles of sustainable economic development.

3. Size and functional distribution of income: Lorenz curves, dualistic development, Gini coefficients, poverty, Kuznets curve, economic analysis through income, government policy options on income distribution.

4. Population growth, unemployment and education: fertility and mortality trends, the malthuasian population trap, household theory of fertility, positive and negative arguments of fertility, population policy; four dimensions of employment problem, underutilization of labour, the traditional competitive free-market model, the price-incentive model, growth models and employment levels, education and human resources, economics of education and employment.

5. Urban and rural development: the migration and urbanization dilemma, the migration process, Todaro model, migration and employment strategy; Agricultural transformation; the transition to mixed and diversified farming, improving small-scale agriculture, conditions for rural development.

6. Environment and development: concept of resources and resource scarcity, private and common resources, nonrenewable resources, valuing the environment, the optimal level of pollution, economic theory and pollution control, pollution tax and markets for pollution permits, cost-benefit analysis, urban development and the environment, the ecological economic approach to sustainability, policy options on environment protection.

7. Trade theory and development experience: traditional theory of international trade and it’s criticisms, export promotion versus import substitution, foreign-exchange rates, financing and reducing trade deficits, trade policies of developed countries.

8. Financial system, investment and aid: international flow of financial resources, private foreign direct investment, multinational corporations, foreign aid, International Monetary Fund, World Bank; financial systems and monetary policy, the role of the State, fiscal policy for development, public administartion, state-owned enterprises, military expenditures.

9. Planning, markets and the role of the State: the nature of development planning, the planning process, problems of implementation and plan failures, role and the limitations of the market in low developed countries.

10. Critical issues: economic transition in Eastern Europe - population problems, allocation of natural resources, capital formation, technical growth and innovations; globalization and international financial reform.


Todaro M.P. Economic Development. 6th ed. – USA: Addison-Wesley Reading. – 1997. – 738p. ISBN 0 582 302579

Hussen A.M. Principles of Environmental Economics: Economics, Ecology and Public Policy. – London: Routledge. – 2000. – 431p. – ISBN 0 415 19571 3

Supportive Readings:

McConnell, C.R., Brue, S.L., Pope, W.H. Economics: Principles, Problems and Policies. 5th ed. - Canada: McGraw-Hill Reyson, Ltd. - 1990. – 958p. ISBN 0 07 549800 6

Meier G.M. Leading Issues in Economic Development. 6th ed. – UK: Oxford University Press, Inc. – 1995. – 591p. ISBN 0 19 507180 8

Turnovsky S.J. International Macroeconomic Dynamics. – USA: The MIT Press. – 1997. – 492p. ISBN 0 262 20111 9

Ekonomicheskaja teorija (politekonomija): uchebnik / Pod obschei red. akad. Vidiapina, V.I., akad. Zuravlievoi, G.P. – M.: INFRA-M. – 1997. – 560c. ISBN 5 86225 573 7

Welch P.L., Welch G.F. Economics: Theory and Practice. 5th ed. – USA: The Dryden Press. – 1995. ISBN 0 03 006648 4

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