'Readers will find in these pages a very lucid, creative, and highly readable version of many of the ideas that have taken shape through the medium of the Human Development Reports during the last four years. Busy policy makers all over the world will find this an indispensable primer.' - Mahbub ul Haq, from the preface. This book introduces the basic concepts of human development and presents policy guidelines for implementing a human development strategy in developing countries. Human development is seen both as an end in itself and as a means to increase the capabilities of people. The role of the state, the market and of people's participation in such a strategy are described. Specific chapters discuss the structure of incentives, allocation of public sector resources, structural reforms, the relationship of human development to environmental issues and finance and administration.