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Most approaches to poverty alleviation focus on income and subsidy measures; however, there is a growing realization that these measures alone are not sufficient. The growing amount of literature on the important role that “social capital” and institutions play in the development process indicates that there is a social-institutional dimension as well. This article focuses on the institutional dimension of rural poverty alleviation and outlines why institution- and capacity-building should be fundamental elements of any strategy aiming at alleviating rural poverty. Analysing some of the main weaknesses of past poverty alleviation strategies, it highlights the potential role and function that rural institutions and grassroots organizations can play in poverty alleviation efforts. The article is based on normative analysis and field experiences in implementing anti-poverty programmes collected by the Rural Institutions and Participation Service of FAO. [author]
