The post-Washington Consensus has succeeded in becoming the new theoretical underpinning for the World Bank's Structural Adjustment policies in developing countries. The weaknesses of its predecessor have thus been addressed, permitting an increased role for the state in economic development, justified by market imperfections, and more attention being paid to the institutional framework within which markets work. Development Policy in the Twenty First Century evaluates this consensus, arguing that the theoretical foundations of market failure deriving from informational asymmetry and transactions costs are too narrow and weak to adequately support the claim that state intervention is necessary for development, and that the consensus fails to analyse the power relations and social stratification of the developing world. It explains that without a much broader political economy it is unlikely to provide a coherent framework for successful development policies. This broad-ranging critique of the post-Washington consensus will be of great interest to those involved in international development issues and students of development studies.