Development policy and economic theory

This book of essays, by some of the leading economists in the field, captures the changing face of development economics and draws out its implications for policy-making. It addresses afresh several key issues, such as the significance of market dualism, the relation between the terms of trade and inflation, the role of multinationals in development, and the management of administered prices and quantity controls; in doing so, it uses state-of-the-art tools of economic theory and econometrics.
The book begins with a survey of Indian economic thought and its impact on Indian development planning, and goes on to discuss some 'new generation' views of the problems and prospects of development in the Third World, especially as these pertain to India. The fourteen essays which comprise this volume fall into five parts. The first sets the agenda with a piece on the historical background. It draws attention to some of the larger concerns of development, including the interface between economic needs and the fundamental rights of human beings. The second presents the theoretical basis of some of the central concerns of development economics. Part III is an empirical econometric study of some aspects of the Indian economy. This is followed by two essays on the international sector; these address matters of contemporary interest such as direct foreign investment and foreign borrowing. The final part is on macroeconomic policy and discusses, in particular, fiscal policy, inflation, and growth.