The Environmental Design in Developing Countries area emphasizes an understanding of how the physical environment, in the so called "third world" nations of the world, is shaped by larger global, cultural, historic, social, economic and environmental factors.

Unlike similar areas of study in other schools, the Berkeley program is premised on two interlinked concepts: first, that the study of other cultures, societies, and peoples is a fundamental exercise for the creation of a better physical environment, and ,second, that the first world can learn from the experiences of the third world as much as it can contribute to it.

The area is conceived as a horizontal link between the existing curricular areas described above, with course offerings in social and cultural factors, history of architecture, and city and regional planning. Students are expected to take courses in the departments of geography, anthropology or international and area studies as needed. Topics being pursued in this area include third world urbanization, urbanism, squatting, informal housing, colonial and post-colonial urban development, and traditional dwellings and settlements. The International Association for the Study of Traditional Environments based in the College of Environmental Design serves as the research arm of this area of emphasis.