The report deals with local planning processes (Socio-Economic Development Planning (SEDP)) as a tool for sustainable economic development during the transformation from a central planning economy towards an open market economy. In this context, it specifically addresses the closely cooperating projects “Poverty Alleviation in Rural Areas” funded by the German Government and "Improving Market Participation of the Poor” funded by IFAD. It highlights strengths, weaknesses and impacts of the projects and shares the lessons-learnt.