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This volume addresses issues facing today's less-developed countries (LDCs). The authors ask who should bear the cost of development and examine a variety of specific policy issues, among them questions of taxation and subsidies to the poor.;The authors believe that such policy issues can be described only by developing and using models that capture the central features of LDCs. They construct a range of simple equilibrium models of LDCs, allowing us to deal with the diversity of institutions and behaviour observed in different LDCs.;Though the book is primarily concerned with issues of taxation, the general methodology has other applications as well. Written in a non-technical style, each chapter contains a statement of problems at hand and a summary of the analysis.