How to raise and spend revenues in order to promote development in practice involves second-best considerations, which the analysis of the role of international trade, liberalization, and other economic reforms must take into account. Particular emphasis is placed on social cost- benefit analysis as a means to discipline public expenditure decisions. Summaries and exercises are included. INDICE 1 International Trade: Theory 2 International Trade: Practice 3 International Trade: Liberalization 4 Taxation 5 Tax Reform 6 Seigniorage and Debt 7 Other Dynamic Pitfalls 8 An Introduction to Social-Cost Benefit Analysis 9 Shadow Prices: A General Equilibrium Approach 10 Time: The Social Discount Rate 11 Space: Transportation Costs 12 Risk and Uncertainty 13 Large Projects 14 Land Reform and Tenancy 15 Small-Scale Credit Appendix A Primer in Duality Theory