The theories developed to explain the different rate and pattern of economic and social development within and between countries and regions and the policy consequences of these explanations are analysed and compared. The theories covered include explanations for different rates of development internal and external to nation states based on social, market, technological and other factors. Significant cases studies of policy experience from Latin America and Asia, where a variety of economic and social policy approaches have been adopted are examined. The current status of debates about the nature of underdevelopment and its solutions is reviewed.