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This sixth edition of a widely used textbook for courses in the economics of development has been extensively revised to reflect new changes in the subject and new problems confronting the development community. The editor has culled the most insightful readings from a variety of sources and integrated them into topical structure that includes his on explanatory sections. New to this edition are sections on new growth theory, new institutional economics and problems of imperfect information and incomplete markets, the environment, recent experience with policy reform, and political economy as related to governance. The readings provide a wide range of viewpoints not found in standard textbooks.