ABSTRACT
Numerous reports have charted the course of changing development strategies. In many ways the initial period of development assistance to the Third World reflected the strategies of the Marshall Plan. Most economic assistance emphasized resource transfers that were used to provide essential physical infrastructure. A number of studies were written in the late 'sixties suggesting that income differentials were widening in developing countries and that the "poorest of the poor" were being left behind. By the end of the 'seventies, there was little evidence that the targeted, bottom-up approach to development was having a significant impact. It seemed apparent that there was need to focus again on macroeconomic policies and to improve the capacity of institutions in Third World countries. The 'seventies were also a period in which donors gave far too little attention to the importance of economic policies employed by developing countries.
