For this Handbook authors known to have different views regarding the nature of development economics have been selected. The Handbook is organised around the implications of different sets of assumptions and their associated research programs. It is divided into three volumes, each with three parts which focus on the broad processes of development. In Volume 2 the emphasis shifts towards policy issues. Techniques of resource allocation and policy planning at both macro and micro levels are discussed in the first part of this volume. The changing international economy within which national development takes place is an important aspect and this is dealt with in the middle section of the book. The role of the state is at least as important in the early stages of development as it is later on, and included in the last section of the Handbook is a comparison of the experience of countries pursuing different development strategies and draws lessons for policy.