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Harvard. Economy of Latin America. Syllabus, Readings, Final Exam. Clague, 1965-1966

Father Ewan Clague and Son Christopher Clague

In preparing this post that features course materials from the second term of the 1965-66 academic year at Harvard for Christopher K. Clague’s “Economy of Latin America”, I ran across obituaries for his distinguished parents, Ewan Clague (Ph.D. Wisconsin, 1929. Thesis: Theory and Measurement of Physical Productivity, major professors Commons & Jerome) and Dorothy V. Whipple (M.D. Johns Hopkins, 1929. Pediatrician, syndicated columnist). Not only was Christopher Clague’s father a trained economist, he also served as the sixth Commissioner of the Bureau of Labor Statistics under Presidents Truman, Eisenhower, Kennedy, and Johnson. I have appended short bios for his mother and father as well as for his wife, Harvard trained political scientist, Monique F. Clague (Weston).

But the top of the post is reserved for a brief c.v. of Christopher Karran Clague, Harvard Ph.D. alumnus (1966). Following the stations of his distinguished career, Economics in the Rear-view Mirror provides transcribed copies of his course outline, assigned readings and final examination.

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Christopher Karran Clague

1938. Born May 28 in Washington, D.C. Parents: Ewan Clague  and Dorothy Vermilya Whipple.

Graduate of St. Alban’s School in Bridgeport, Ct.

1960. B.A. in political science (honors), magna cum laude, Swarthmore College. Phi Beta Kappa, Senior Class President.

1960. Married Monique Françoise Weston, June 9 in Cleveland, Ohio.

1966. Ph.D. in Economics. Harvard University. Thesis “Economic Efficiency in Peru and the United States.”

1965-67. Instructor in Economics. Harvard University.

1967-68. Senior staff economist. Council of Economic Advisers, Washington, D.C.

1968-71. Assistant Professor. University of Maryland.

1971-79. Associate Professor. University of Maryland.

1974-75. Visiting professor at Boston University’s Center for Latin American Development Studies.

1979-. Professor of Economics. University of Maryland [now emeritus]

1983. Visiting Professor at the University of California, Berkeley.

1983-89. National Bureau of Economic Research, member of executive committee, Conference on Research in Income and Wealth.

1990. Visiting Professor at the University of Hawaii at Manoa.

1990. Visiting Professor at the University of Nottingham.

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Economic 116.
The Economy of Latin America

Dr. Christopher Clague
Harvard University

Course Outline.

  1. International Trade and Economic Development
    Case Studies: Argentina, Uruguay, Venezuela.
  2. Capital Accumulation; Social and Political Factors; Economic Policy: The Price Mechanism versus Direct Controls.
    Case Studies: Chile, Brazil.
  3. Agriculture in Economic Development; Land Reform
    Case Studies: Mexico, Bolivia, Peru, Colombia.
  4. Inflation

Suggested Purchases. The number of pages to be read in each book is given in parentheses.

  1. Gerald M. Maier, Leading Issues in Development Economics. New York: Oxford University Press, 1964. (63 pages)
  2. John J. Johnson, Political Change in Latin America. Stanford, California: Stanford University Press, 1961. (135 pages)
  3. Martin C. Needler, editor, Political Systems of Latin America. Princeton, New Jersey: D. Van Nostrand Company, 1964. (Chapters on Colombia, Peru, Bolivia, Argentina, Uruguay. 145 pages.)
  4. Edwin Lieuwen, Venezuela. 2nd Edition revised. New York: Oxford University Press, 1965 (122 pages)
  5. A. O. Hirschman, Journeys Toward Progress. New York: Doubleday and Company (Anchor Books, paperback), 1965. (Chapters on Colombia and Chile. 168 pages).
  6. Celso Furtado, The Economic Growth of Brazil. Los Angeles: University of California Press, 1963. (152 pages).
  7. Theodore W. Schultz, Transforming Traditional Agriculture. New Haven: Yale University Press, 1964. (110 pages).
  8. Albert O. Hirschman, editor, Latin American Issues. New York: Twentieth Century Fund, 1961. (paperback). (83 pages).
  9. Lester R. Brown, Increasing World Food Output, Foreign Agricultural Economic Report No. 25, U.S. Department of Agriculture, Economic Research Service, Foreign Regional Analysis Division, April 1965. (Can be purchased from: Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. Price $.45) (115 pages).
  1. International Trade and Economic Development
    1. The Contribution of Trade to Development
      1. — Meier, Leading Issues:
        — G. Haberler, “Dynamic Benefits of Trade”, pp. 352-358
        — R. Nurkse, “Patterns of Trade and Development”, pp. 358-363
        — A. Cairncross, “Contribution of Trade to Development”, pp. 363-371
        — R. Prebisch, “Center and Periphery”, pp. 339-344
        — G. Meier, “The Carry-Over Problem”, pp. 371-376
      2. — G. Haberler, “Terms of Trade and Economic Development”, in Howard S. Ellis, Economic Development for Latin America, pp. 275-297
    2. Case Studies of Trade and Development
      1. Argentina
        — Johnson, Political Change, Chapter 6.
        — J. Barager, “Argentina” in Needler, Political Systems.
        — A. Smithies, “Argentina and Australia”, American Economic Association Papers and Proceedings, May 1965, pp. 17-30.
        — S. Mosk, “Latin America and the World Economy, 1850-1914”, Inter-American Economic Affairs. (Hereinafter referred to as IEA), Winter 1948, pp. 53-82.

Suggested:
— UN, ECLA, Analyses and Projections of Economic Development: The Economic Development of Argentina.
— Arthur Whitaker, The U.S. and Argentina
— Aldo Ferrer, La Economia Argentina
— J. Black, “Observations on the Agriculture of Argentina”, Journal of Farm Economics, May 1957, pp. 468-477,

      1. Uruguay
        — Johnson, Chapter 4.
        — G. Lindahl, “Uruguay” in Needler.
      1. Venezuela
        — E. Lieuwen, Venezuela (1965 Edition), pp. 64-163, 177-200.
      1. Peru in the Guano Age
        — Jonathan V. Levin, The Export Economies, pp. 1-48, 77-91, 108-123.
  1. Capital Accumulation and Growth; Social and Political Policy: Price Mechanism versus Direct Controls.
    1. The Big-Push Theory
      1. — Meier, Leading Issues:
        — P. Rosenstein-Rodan, “The Theory of the ‘Big-Push,'” pp. 431-436.
        — R. Nurkse, “Balanced Growth”, pp. 250-254.
        — A. Hirschman, “Balanced Growth: A Critique”, pp. 254-259.

Suggested:
— E. Hagen, On the Theory of Social Change, Chapter 3, pp. 36-52.

    1. Political Obstacles to Growth
      1. — Paul Baran, “On the Political Economy of Backwardness”, in Agarwala and Singh, The Economics of Underdevelopment, pp. 75-93 (orginally in The Manchester School, January, 1952).
    2. Economic Policy: Price Mechanism versus Direct Controls
      1. — Meier, Leading Issues:
        — P. Rosenstein-Rodan, “The Flaw in the Mechanism of Market Forces”, pp. 416-18.
        — H. Johnson, “The Market Mechanism as an Instrument of Development”, pp. 425-431
        — G. Meier, “Import Substitution and Industrial Protection”, pp. 297-304.
      1. — T. Balogh, “Economic Policy and the Price System”, Economic Bulletin for Latin America, March 1961.
      2. — W. Baer, “The Economics of Prebisch and ECLA”, Economic Development and Cultural Change, January 1962, pp. 169-182 (hereinafter referred to as EDCC.)

Suggested:
— J. Marshall, “Exchange Controls and Economic Development”, in H. Ellis, ed., Economic Development, pp. 430-451; also comment by Hirschman, pp. 457-465.

    1. Case Studies:
      1. Chile
        — Johnson, Chapter 5.
        — David Felix, “Chile” in Adamantios Pepelasis et al, Economic Development, pp. 288-323.
        — Eric Baklanoff, “Chilean Experience with Multiple Exchange Rates”, IEA, Summer, 1959.
        — A. Hirschman, Journeys Toward Progress, Chapter 3, pp. 215-293.

Suggested:
— P. T. Ellsworth, Chile, An Economy in Transition (1945)
— Ernst Halperin, Nationalism and Communism in Chile (1965).

— See also the section on Inflation.

      1. Brazil
        — Johnson, Chapter 8.
        — H. Spiegel, “Brazil: The State and Economic Growth”, in Simon Kuznets et al, editors, Economic Growth: Brazil, India, Japan.
        — Celso Furtado, The Economic Growth of Brazil, pp. 97-249

Suggested:
— Other articles on Brazil in the volume edited by Kuznets.
— W. Baer, Industrialization and Economic Growth in Brazil (1965).
— W. Baer, “Regional Inequality and Economic Growth in Brazil”, EDCC, April 1964.

  1. The Role of Agriculture; Land Reform
    1. Agriculture and Economic Development
      1. — T. W. Schultz, Transforming Traditional Agriculture, pp. 1-110.
      2. — Johnston and Mellor, “The Role of Agriculture in Economic Development”, American Economic Review, September 1961, pp. 566-591.
      3. — J. Mellor, “The Process of Agricultural Development in Low-Income Countries”, Journal of Farm Economics, August 1962, pp. 700-17.
      4. — Thomas Carroll, “The Land Reform Issue in Latin America”, in Hirschman, Latin American Issues, pp. 161-200.
      5. — Lester Brown, Increasing World Food Output, pp. 1-115
    2. Case Studies
      1. Mexico
        — Johnson, Chapter 7.
        — Robert Edminster, “Mexico”, in Adamantios Pepelasis, Economic Development, pp. 326-364.
        — Raymond Vernon, The Dilemma of Mexico’s Development, Chapters 1-4; Chap. 7.
        — Richard Parks, “The Role of Agriculture in Mexican Economic Development”, IEA, Summer 1964.

Suggested:
—  A. Sturmthal, “Economic Development, Income Distribution, and Capital Formation in Mexico”, Journal of Political Economy, June 1955.
— R. Scott, Mexican Government in Transition, esp. pp. 56-95.

      1. Bolivia
        — Robert Alexander, “Bolivia”, in Needler

Suggested:
— Richard Patch, “Bolivia: U.S. Assistance in a Revolutionary Setting”, in Council on Foreign Relations, Social Change in Latin America Today, pp. 108-176

      1. Peru
        — Rosendo Gomez, “Peru”, in Needler
        — Allan Holmberg, “Changing Community Attitudes and Values in Peru: A Case Study in Guided Change” in Social Change (see reference under Bolivia), pp. 63-107.
      1. Colombia
        — J. Martz, “Colombia”, in Needler
        — A. Hirschman, Journeys Toward Progress, Chapter 2, pp. 131-214.

Suggested:
— V. L. Fluharty, Dance of the Millions, 1930-1956.
— J. D. Martz, Colombia, A Contemporary Political Survey.
— Everett Hagen, On the Theory of Social Change, Chapter 15 (on Colombia), pp. 353-385.
— UN, ECLA, Analyses and Projections of Economic Development, III. The Economic Development of Colombia (1957).

  1. Inflation
    1. Causal Theory of Inflation: Structuralists and Monetarists
      1. — Hirschman, Latin American Issues: articles by Felix and Grumwald, pp. 95-125.
      2. — Meier, Leading Issues: R. Prebisch, pp. 207-210.
    2. The Effects of Inflation and How to Combat It
      1. — Meier, Leading Issues:
        ECAFE, “Inflation and Capital Formation”, pp. 170-174.
      2. — W. Baer, “Inflation and Growth in Brazil”, EDCC, October 1962, pp. 85-97.
      3. — E. Bernstein and I. Patel, “Inflation in Relation to Economic Development”, IMF Staff Papers, November 1952.
      4. — R. Campos, “Inflation and Balanced Growth” in H. Ellis, ed., Economic Development, pp. 82-103.
      5. — G. Dorrance, “The Effect of Inflation on Economic Development”, IMF Staff Papers, March 1963, pp. 1-44.
      6. — D. Felix, “A Critical Appraisal of the Monetarist-Structuralist Controversy”, in W. Baer and I. Kerstenetsky, editors, Inflation and Economic Growth, pp. 370-385. (Do not bother with the last part of the article.)

Suggested:
Other articles in the volume edited by Baer and Kerstenetsky.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 9. Folder “Economics, 1965-1966 (1 of 2)”.

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Final Examination
Economics 116

June 4, 1966
Dr. Clague

Answer four questions.  Select one from each part.  (Those who have written papers may select four questions either from Parts I, II, and III, or from Parts I, II, and IV.)

I.
  1. Discuss one of the articles in the Reading Period assignment. Pick an article that you found especially interesting or significant.
    Add your own comments on the issue the author discusses.
  2. Which do you think are the most important valid arguments for tariff protection of industry in Latin American countries? Explain each argument in enough detail to make it evident that you understand it.
II.
  1. What are the obstacles to Chile’s exporting manufacturing products? Why might such exports be important for future economic growth?
  2. Discuss the Baran thesis in relation to Chile and Brazil in the twentieth century. To which country is it more applicable?  How have political alignments affected economic growth?
III.
  1. W. Schultz (in Transforming Traditional Agriculture) argues that peasants in traditional agriculture are thrifty, hardworking, and economically motivated. Yet they fail to adopt the new practices that would make their farms much more productive.  How does he reconcile these two propositions?  Do you agree?
  2. You are an economic adviser to President Belaunde Terry of Peru. He asks you to write a memorandum on land reform policy.  In particular, he wants to know what lessons, of relevance to Peru, might be drawn from the experience with land reform of Mexico, Bolivia, and Colombia.
    President Belaunde is interested in the growth of Peru’s per capita income, the welfare of the peasants, and his continuance in power.
IV.
  1. Explain how inflation could be used by the government to increase the rate of capital formation. What are the arguments against such a policy?
  2. Consider the following two propositions:
      1. Inflation is inevitable in an underdeveloped country that is attempting to industrialize.
      2. It follows from (i) that monetary stabilization programs, such as those proposed by the International Monetary Fund, are doomed to failure.

To what extent do you agree with each of these statements?

Source: Harvard University Archives. Harvard Faculty of Arts and Sciences. Papers Printed for Final Examinations in History, History of Religions, Government, Economics,… June 1966.

Image Sources: Ewon Clague portrait from The First Hundred Years of the Bureau of Labor Statistics by Joseph P. Goldberg and William T. Moye. September 1985, Bulletin 2235. Senior year portrait of Christopher K. Clague in the Swarthmore yearbook Halcyon 1960.

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Father: Ewan Clague

Born Dec. 27 1896 in Prescott, Washington. He married Dorothy Vermilya Whipple on June 14, 1924 in Milwaukee, Wisconsin. He died in April 12, 1987.

Ewan Clague, born in Prescott, Washington in 1896, was the sixth Bureau of Labor Statistics Commissioner. His education included the University of Washington and, after serving as an ambulance driver in World War I, the University of Wisconsin. Clague’s teacher, John R. Commons, recommended him to Commissioner Ethelbert Stewart, who hired Clague in 1926 to help develop productivity indexes. After finishing his project at the Bureau, Clague moved on to several other jobs, including working at the Metropolitan Life Insurance Company, studying the effects of mill closures for the Institute of Human Relations at Yale University, and serving as director of research and professor of social research at the Pennsylvania School of Social Work. In 1936, he was hired as Associate Director of Research and Statistics of the new Social Security Board, and was subsequently promoted to Director. In 1940, he became Director of the Bureau of Employment Security. When Clague was appointed Commissioner of the Bureau of Labor Statistics in 1946, he came to the office as a trained economist and experienced civil servant. [Retired from office on September 14, 1965 during his fifth term as Commissioner]

Source: https://www.bls.gov/bls/history/commissioners/clague.htm

 

Mother: Dorothy Vermilya Whipple

Born November 22, 1900 in Toledo Ohio. Died May 5, 1995 in Washington, D.C.

Speed skater at the University of Wisconsin, where she earned her B.A. and M.A. First married woman admitted to Johns Hopkins Medical School (M.D., 1929). Pediatrician. Published Our American Babies (1944). Most of the revisions in the 1942 Federal pamphlet Infant Care  were prepared by her and Dr. Marian M. Crane. Syndicated weekly newspaper column on child care. Two other books: Euthenic Pediatrics and Q: Is the Grass Greener? Answers to Questions About Drugs (1971).

Obituary by David Stout in the New York Times, May 8, 1994.

Wife: Monique Françoise Weston

Born March 5, 1937 and grew up in Shaker Heights, Ohio. Graduated Shaker Heights High School, Ohio, 1955. College Junior year abroad at the London School of Economics in 1957-58. B.A. magna cum laude in Political Science at Swarthmore 1959, Phi Beta Kappa. Woodrow Wilson Fellowship for graduate study at Columbia University. Ph.D. Harvard 1969. Thesis: Heroic Leadership and Legalism: The Case of De Gaulle’s Légalité.” Professor of Education Policy, Planning, Administration at the University of Maryland [now emerita].