The problems associated with structural stagnation, the debt crisis, and policy mismanagement have proved resistant to the procedures of balance-of-payments stabilization and structural adjustment of the International Monetary Fund and the World Bank. This paper considers the challenges encountered in merging policies of adjustment and development planning. We consider some guiding principles and weigh some alternative policies. The paper suggests that a new approach may be useful for the countries that have been least successful at making adjustments, face massive structural problems, and need additional donor aid. Development Agreements would call, on the part of the recipient countries, for policies based on a "development strategy" and, on the part of the donor countries, for assurances of long-term financial assistance. It is suggested that such agreements be organised and overseen by joint Development Commissions made up of representatives of the donors, the recipient ...