Institutional reforms need social support, public sector collaboration and civil society participation. Distinguishing different categories of issues for policy, organizational, and managerial reforms draws attention to the paths through which these reforms might be revised and tailored to countries’ specific institutions and politics. Policies that emphasize the benefits of economic liberalization with state withdrawal fail to address critical institutional constraints to market and economic development in rural areas. The paper stresses that strategic contributions of public organizations be recognized and reinforced. Some innovative steps in critical areas such as rural development and agricultural research are summarized