The first edition of Dilemmas of Development was welcomed as the first detailed account of the resurgence of neo-classical economics in the field of development policy. For the second edition much of this original material has been preserved but a range of new discussions have been added to ensure that the text maintains its relevance in the 1990s. New sections address the following questions: how have the arguments about the development counter-revolution been affected by recent events, especially by the collapse of the former Soviet bloc?; does the collapse of the Soviet planned economy model validate the rejection of Keynesianism by the development counter-revolution?; can neo-classical economics explain the politics of developing countries?; have aid policies aimed at changing the economic policies of developing countries' governments succeeded?; how did the policies of industrial countries affect the economic performance of developing countries, particularly in relation to the world debt crisis of the 1980s? This text should be of interest to undergraduate and postgraduate students of development economics and development studies, and to development practitioners interested in the wider background of their work.