Construction Management and Economics, 20(7), 593-99 Construction and Economic Development in Selected LDCs: Past, Present and Future WILLIE TAN Department of Building, School of Design and Environment, National University of Singapore, 4 Architectural Drive, Singapore 117566 Abstract This paper critically examines the changing relations between construction and economic development in selected less developed countries (LDCs) in the light of new development dynamics. Historically, the relationship was seen Keynesian terms. By the 1980s, attention turned towards structuralist and political economy explanations amid a neoclassical revival towards structural adjustments and ‘market friendly’ reforms. Current explanations tend to focus on property rights and building institutional capabilities. The strengths and weaknesses of current explanations provide future directions for research. Keywords: Construction and economic development, structure, political economy, institutions. Introduction This paper critically examines the changing relations between construction and economic development in selected LDCs. The relations are important because of the contributions of the construction sector to national income, employment, and economic stabilization (World Bank, 1984). Its potential role as an agent of development, modernization, entrepreneurship, and socio-political stability within the informal sector and communities is also widely recognized (ILO, 1987). The East Asian economic crisis of 1997-8 and current global recession has forced a rethinking of exactly what roles the construction sector should play in economic