In spite of spectacular, unexpected and unprecedented progress in the developing countries in the last forty years, mass poverty, unemployment and underemployment persist. Over 1000 million people in the world fall below the poverty line. In this book the author discusses the strategies that have to be adopted to eradicate these evils. Many of the answers have been known for a long time, yet nothing has been done. This leads to a thorough discussion of the role of the state, of public policy, and of civil society, and of the positive and normative political economy of reform: how to mobilise the political coalitions and alliances to get the correct policies implemented.