A Short Chronicle of Academic Thought about Development

Concerted analytical attention to the economic and social conditions of the poor countries of the world began after World War II. It focused first on major issues such as resource requirements, unemployment and overall policy. In the 1970's and 1980's, microeconomic analysis turned neoclassical and frequently assumed that good markets were pervasive. Balance of payments crises associated with international finance and energy prices preoccupied macroeconomic analysis. Closer attention to specific microeconomic policy issues has characterized the most recent thinking about development, with greater awareness of market imperfections and the problems of acquiring and using information in policy formation.