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While local rural organizations can be used positively to provide two-way communication, minimize risk, achieve economies of scale, promote political and economic independence, and spread the benefits of donor assistance among the rural poor, these same organizations can be used negatively to perpetuate inequities, control rural peoples, and weaken or destroy viable local cultures. This two-volume report identifies the potentials and dangers of using local organizations to increase the well-being of the rural poor and details how A.I.D. might design and implement projects to make effective use of these organizations. Volume I presents the results of a comparative study of local organizations, including quantitative and qualitative analyses of these results and policy recommendations for A.I.D. Volume II contains 24 detailed case studies of local organizations in Upper Volta, Cameroon, Yemen, Guatemala, Peru, the Philippines, and Jamaica. After summarizing current thinking on the use of local organizations, the authors discuss the prevailing strategies for local organizational intervention.