Reform of economic policies in developing countries is one of the most frequently attempted, and least understood efforts of the last decade. This issue is systematically addressed by Anne Krueger in her series of Kuznets Memorial Lectures. Professor Krueger begins by considering the reasons why genuine reforms are necessary if countries are to achieve sustained increases in real incomes and living standards. She goes on to analyze the various components of policy which must be reformed - government spending and revenues, trade and exchange rates, controls on private sector activity, labour market regulations and agricultural pricing. Finally, there is an analysis of why reforms, once implemented, succeed or fail, accompanied by a description of several reform efforts and their outcomes. The author has also added an appendix examining the relevance of the lessons from developing for Eastern European countries attempting the transition from communism to market economies.