Development programs are often influenced by two myths about how development occurs. The first myth, the “technical fix,” posits underdevelopment as a technical problem to be solved by experts with blueprints. The second myth, the “noble peasant,” sees underdevelopment as a social problem to be solved by villagers unhindered by technicians or bureaucrats. Both myths have encouraged the use of strategies which bypass local institutions, employ technical assistance personnel in the role of “performers,” and fail to build appropriate local capacities to initiate and sustain development activities. Moreover, the project development procedures of donor agencies treat design and capacity building as separate functions and thus exacerbate the situation and render much technical assistance ineffective. This paper explores alternative ways of using technical assistance as resource “mobilizers,” promoting flexible “process” designs which avoid the blueprint trap, modifying donor project development procedures and building local capacities. The authors conclude that technical assistance is an integral part of capacity building but it is not effective when project strategies bypass local institutions.