Of the requisites for economic development, human capital is the most “policy-proof,” is the one which developed nations can most effectively render on large scale, and is that which American colleges of Agriculture are uniquely equipped to render. Graduate study in agricultural economics is a popular choice of third world students as it occupies a pivotal position between agricultural science and the liberal arts, giving it substantial relevance to economic development. It is necessary to understand the history, economics, sociology, and (...) psychology of the institutions that are central to economic development. Graduate programs in agricultural economics have fallen short of their potential to contribute to human capital and hence to the process of economic development. It is recommended that these programs capitalize on the disciplinary ties to both agricultural science and to the liberal arts, and in particular, 1) place greater emphasis on international aspects of macroeconomics, 2) include in the study of microeconomics more realistic treatment of what prices and markets can and cannot accomplish, and 3) emphasize the importance of effective communication in preparing returning third world students for their responsibilities in bridging the gap between research and policy. (shrink)