Those involved in programmes and approaches to working with the rural poor have become steadily more aware of the importance of understanding not just the people they want to work with, but also the social, cultural and political context in which they live. The role of local institutions has been increasingly recognized, but little attention has been paid to ways of understanding the local institutions that shape the environment in which poor people live. What is it they do? Who exactly do they serve and how? How do they change over time? How can they be strengthened and made more equitable? How can they be made more accessible to the poor?