A framework for establishing priorities in a country poverty reduction strategy

The paper reviews the history and progress of understanding of development theory over the past 50 years. Development thinking has evolved from an early paradigm that focused on savings and capital investment to subsequent arguments favoring the inclusion of human capital, policy, technical change, and finally to the inclusion of the role of institutions, and good governance. Secure property rights in the broadest sense, which are applicable to all resources and not just land, are particularly important to realize investment yield. This evolution of development thought describes a conceptual framework that can guide development practitioners in prioritizing, sequencing, and characterizing all interventions aimed at reducing poverty.