This report draws on four decades of documented experience provided by both bilateral and multilateral donors, as well as academic specialists, to help policy makers and practitioners think through effective approaches to capacity development and what challenges remain in the drive to boost country capacity. The analysis is underpinned by a conceptual framework which guides practitioners to view capacity development at three interrelated levels: individual, organisational and the enabling environment. It provides insights into what capacity development is, why it matters and, more importantly, what can be done to support it.