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Specifically designed for students of economics taking a course in development economics with a background knowledge of micro and macro economics, this textbook is written in a simple but rigorous way that also makes it accessible to policy makers and all those concerned with the process of economic development in the Third World. In this extensively revised seventh edition, all statistics have been updated and new institutional material has been added. In addition there are new sections on the meaning and consequences of globalization, the World Bank's approach to tackling poverty, the impact of aid, trade liberalization and growth, and exchange rates for developing countries.