Development economics informs development workers, policymakers, and ordinary citizens regarding a wide range of important economic and policy issues. It examines the meaning of development from different perspectives, the alternative framework for analysis including the roles of political economy and institutions, the tension between the roles of private and public sectors in the economy, evaluation of alternative strategies to achieve economic growth and sustainable human development.
The main objective of modern development economics is to promote strong, sustainable, and inclusive growth in low-income and middle-income developing countries. To achieve this, development economics studies both the macroeconomic and microeconomic issues of development. Using the macro lens, it examines the appropriate goals of fiscal, monetary, and trade policy; the challenges of low- and middle-income developing countries. Using the micro lens, it explores the private sector as the engine for growth and related governance and cultural issues that may facilitate or impede private sector growth. It also discusses newer thinking on the role of government and industrial policy, and public-private partnerships.
Inclusive development focuses on human development policies, including gender equality, investment in early childhood development, health and nutrition, and quality of education. Finally, the scope includes international debate and cooperation on managing growing risks and shocks e.g., financial crisis; food security crises; fragility and conflict; and climate change.