The Economics of Developing and Emerging Markets, by CharlesvanMarrewijk, StevenBrakman and JuliaSwart (Cambridge University Press, Cambridge, 2023), 538 pages

This latest textbook, The Economics of Developing and Emerging Markets, written by economics Professors Charles van Marrewijk and Steven Brakman, and their co-author Julia Swart, presents an innovative perspective on the economics of development, a rich discussion of the key issues involved in the development process, and an updated account on history, data and theories. The main goal of the textbook as set by the authors is not so much about what one learns from it, but through the book helping you learn to ‘form your own informed opinions of what is important in the development process of countries’ (p. xxiii). As someone who has taught the economics of development for a long time, I know the power of this statement in influencing the effectiveness of students' learning of the subject. The textbook consists of four parts divided into 19 chapters: The first part with four chapters introduces economic development and analysis of deep roots. A highlight is to look at the deep roots discussion on the main causes of differences between countries and regions in the level of economics development by taking the reader to the origins of life on earth and human development, with an emphasis on the importance of the agricultural revolution for creating the conditions for building institutions and rapid economic growth. The second part with five chapters shifts focus from geo-human interaction to human interaction covering a wide range of issues such as a historical perspective of globalisation, trade, migration and capital flows; economic fundamentals such as capital accumulation, knowledge flows and endogenous growth; and the role of institutions and contracts in a modern economy. This part also discusses the role of money and finance with a particular focus on exchange rates, forward markets, interest parity, the policy trilemma and the links between finance, investment and development. The third part with five chapters delves into important topics related to human development such as poverty, gender equality and income inequality. It frames the analysis of those development issues by introducing poor economics, which attempts to better characterise and understand the economic lives of the poor and the decisions they make. Insights from randomised control trials feature extensively. This part also deals with other key factors related to human development such as population and demographic transition and changes in demographic dividends. It emphasises the role of education by discussing the biology of learning and the links with development. It also covers issues relating to health, life expectancy and infant, child and maternal mortality. The fourth part with five chapters focuses on connections and interactions between different parts of the development process. Setting the theme of connections and interactions as an analytical framework allows the authors to treat a variety of topics in a coherent way. For example, topics of agricultural production and employment, including relevant policies, are reviewed in relation to the Lewis model of development; the role of urbanisation and agglomeration in the development process is analysed in a geographical economics framework; both horizontal and vertical foreign direct investment are analysed using the Melitz model of trade and production; and a discussion of sustainability in connection with development and the environment is carried out by analysing scale, competition and technology effects. In approaching and analysing the key contents of development as summarised above, the textbook demonstrates some unique features that make the book stand out as a main textbook for development studies. First, as shown by the title, the textbook makes a distinction between developing and emerging market economies instead of treating developing countries generally as a subject for analysis. This distinction allows the reader to know there are two categories of countries broadly defined rather than just one category of countries in the development process. For example, emerging markets are defined as those economies that have achieved a higher rate of economic growth for a more sustained period. There are of course common features associated with both, but each of them demonstrates unique characteristics and challenges for policy reflecting differences in both the level and stage of development. Second, being different from many other textbooks in development economics, the textbook adopts an overarching approach to treat key issues, theories and policy studies in economic development under the four general themes of deep roots, human interaction, human development and connections and interactions. This highly generalised approach allows the authors to widen the scope of analysis and discussion, such as the historical analysis of development issues, which explains well the uneven playing field among developing countries. This approach also allows the reader to understand better the connections and human interactions in terms of trade, capital and knowledge flows, as well as the associated implications for institutions, contracts and finance. This approach also allows one to understand the importance of connections, location and human interactions determining future prosperity. Third, it is now known that development is a multidimensional process involving many issues which must be dealt with by adopting a multidisciplinary approach. The textbook skilfully incorporates insights from other disciplines such as biology, history, geography and sociology to better understand human development in relation to issues such as inequalities, health, demography, education and poverty. Fourth, the textbook presents a well-researched and balanced perspective on economic development, integrating both theoretical frameworks and real-world examples. It is up to date in its coverage of research and policy discussions. Its visual presentation—figures, charts and boxes—is extremely informative and useful. The only thing that is missing in the textbook is that the authors did not provide lists of study questions at the end of each chapter. Such a resource would be useful for both teachers and students in their learning of the subject. In conclusion, the textbook is a well-structured and informative book that provides a thorough analysis of economic issues in the developing world. The book provides a comprehensive overview of economic theories and practical case studies related to developing economies. It serves as a useful resource for understanding economic policies and challenges in both developing and emerging markets. It is highly relevant for students as well as teachers, policymakers and business professionals seeking to understand the issues and the complexities involved in managing development challenges in the developing world. I highly recommend the book.