Do you want to understand contemporary global development inequalities? Do you want to study economics in conjunction with development? If so, development economics could be right up your alley. The study of development in low-income countries is attracting more attention than ever before. Policy-makers are increasingly finding themselves grappling with complex issues of growth, inequality, poverty and social welfare.

Development economics deals with the economic aspects of the development process in low-income countries. It focuses not only on methods of promoting economic growth and structural change but also on the well-being of society through improvement in health, education and workplace conditions.

The subject involves creation of theories and methods that aid in the determination of policies and practices that can be implemented at either the domestic or international level. This may involve restructuring market incentives or using mathematical methods like inter-temporal optimisation for project analysis. It could also involve a mixture of quantitative and qualitative methods. Unlike in other economic fields, development economics may also incorporate social and political factors to devise particular plans.

There is no single cause for economic progress, but a combination of factors, including the improvement of physical and human capital and institutions that enable the background flow of information essential to market performance.

• What do I have to do?

The global economic environment has become increasingly complex. Changes in both the political and economic arenas have been rapid and policy-makers need to respond quickly and appropriately to new conditions. Development economists study the circumstances unique to each country in order to help eradicate poverty, reduce inequities and advance sustainable development. With greater inclusion and popular participation in economic policy-making, development economists are called upon to work with their fellow citizens as experts, educators and facilitators.

Their work includes identifying social welfare functions, translating them into a series of social choices or possibilities and determining the set of fiscal, monetary, exchange rate, trade and other policies that are both consistent and politically viable.

Development economics also includes topics such as Third World debt, and the functions of organisations such as the International Monetary Fund (IMF) and World Bank. In fact, the majority of development economists are employed by institutions like the IMF and the World Bank. Many such economists are interested in promoting stable and sustainable growth by promoting self-reliance and education in some of the low income countries of the world. Where economic issues merge with social and political ones, it is referred to as development studies.

An increasingly global economy limits and also enhances the choices and possibilities open to each society. Planners take into account the mobility of factors of production, particularly those of capital and skilled labour, in determining what policies are consistent and politically viable.

• What should I study?

You should have a degree in economics or a related discipline with a strong focus on economics. An aptitude for theory and quantitative methods is a requirement for admission to most courses.

• What next?

The rapid pace of globalisation has increased the demand for professionals with specialised training in economic development. Development economists can work in one or more of the following areas — international agencies, international businesses and non-governmental organisations. They can work as development researchers, practitioners and policy-makers for issues facing developing countries. Many professionals work in private firms and think tanks, as well as in research organisations such as the UN, the World Bank and the IMF, in addition to non-governmental organisations around the world. Some students also opt for further studies in international and development economics in a PhD programme.