A key to understanding why some rural development policies succeed and some fail is found in this book. The editors contend that established economic models are inadequate to interpret the behavior of rural markets and nonmarket institutions. This book investigates economic institutions and contractual arrangements in credit, labor, and land markets and analyzes their implications for the behavior of the rural sector. Drawing on 15 short case studies, five overview and nine theoretical chapters explore some of the most pressing problems facing developing countries: how to promote financial integration of the rural sector, how to rationalize the use of land and water, and how to design and administer tax and transfer policies. The book contributes to theory, empirical methodology, and the solution of concrete policy questions.