The problem and the solution . Theoretical work in development economics has had a significant impact on the development process of nations, including national policies for human resource development (HRD) in developing countries.As an important component of an overall economic development system, HRD can benefit from the insights provided by development economics—especially in developing countries. At the national policy level, HRD should identify and pursue opportunities for economic development by engaging in policy analysis and comparative studies, as well as contributing to policy recommendations and implementation based on development economics.