The study of development in low-income countries is gaining unprecedented global attention, yet a comprehensive text that reflects the significant advancements in the field over the past decade has been lacking. This work addresses that gap with clarity and rigor. Debraj Ray, a leading theorist in development economics, synthesizes both recent and foundational literature, posing critical questions that will shape future research agendas. Key topics explored include economic growth theories, inequality, poverty, undernutrition, population dynamics, trade policy, and the markets for land, labor, and credit. A central theme is that understanding the development process requires examining factors that hinder the efficient and equitable functioning of markets. The book encompasses diverse subjects such as new growth theory, moral hazard in land contracts, and the macroeconomic effects of inequality, all under a unified methodological approach. Ray argues that economic progress stems from a combination of factors, including improvements in physical and human capital, reduced inequality, and institutions that facilitate essential market information. Using accessible language and minimal mathematics, the text is designed for those with only introductory economics knowledge. It will serve as a definitive resource for researchers and policymakers navigating the complexities of growth, inequality, and social welfare.
