Ouch, that's a tough choice, although LSE might not be as cheap since the dollar is plummeting.
I went to LSE for the masters in IR, and several of my friends did the development management course. I think they would have preferred the straight development course, but they all had a good time either way.
I don't think it'll necessarily be easier to get into the private sector with either degree. Master's are increasingly being seen as a prerequisite in certain sectors of international affairs/development. That said, being an American, it will be much harder to get a job in Europe.
One thing you may want to explore with SIPA is their joint MPA program with LSE. It was hell for all of my friends in that program, as it just got started and the coursework was enormous. But, you get two degrees from great schools.
Also, if you are ever considering a Ph.D., then you should know that Tufts' Fletcher school does not consider the LSE degrees enough to meet their minimum requirement: you'd have to do their 2 year master's degree, then apply for their Ph.D. program. It doesn't take all that much more time, but applying again sucks.
However, if you're interested in the Presidential Management Fellowship, then LSE degrees are eligible, despite LSE career services saying otherwise.
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