This study is designed to be used in the undergraduate course in the economics of development and often substitutes for a core text. It consists of a combination of articles and interstitial material by the author. The book emphasizes the fundamental analytical principles of economic development and applies them to policy analysis and to development experience. It focuses on analysis of the constraints on development and the need to relax these constraints by undertaking appropriate policies. This new edition relates changes in development thought to development policymaking.