There are broadly two different approaches to rural planning in the Third World: the improvement approach, which aims to encourage agricultural development within existing peasant production system, and the transformation approach, which attempts to establish new forms of agricultural and social organization, and which makes a radical break with existing system in terms of scale of operation, production techniques, and socio-legal structure.

The improvement approach was especially characteristic of the development policies pursued by British colonial government in Africa, India and elsewhere. Under colonial rule extension works was often coupled with the enforcement of various administrative ordinances to prevent soil erosion or to encourage the cultivation of certain crops. Hence, general incentives to production were combined with the principle of 'persistent persuasion'. The cases of non-observance were reported to authorities for court action.

Various governments encouraged the marketing of these crops through state agencies or cooperative societies composed of basically small farmers for selling their produce. Thus, the colonial governments were willing to assist in developing an infrastructure concerned with distribution as well as production.