| Abstract | Rural development is a continuous process, which takes many decades to achieve its goal, if socio-economic and institutional environs and suitable programs addressing location specific aspirations and needs are implemented. Moreover, spontaneous public participation is indispensable for successful implementation and sustainability of rural development programs. Cognizant to its importance, the participatory development approach was first introduced in Nepal in the 1980s. Its aim was that to facilitate sustainable development through active people's participation in related activities. This study assessed planning process and institutional capabilities of GOs, NNGOs/INGOs and LNGOs involved in rural development activities. Altogether six income generatings and infrastructure development projects implemented in Arjunchaupari VDC of Syangja District were surveyed. This projects the decision making, implementation, evaluation and monitoring system of the above maintain projects were examined and, then, degree of participation was analyzed and these institutional causes were explored. Besides, selected socio-economic variables were related with participation using multiple correlation method. All projects were implemented in with compatible biophysical and socio-economic environs that allows direct comparison. The results of the analysis revealed that the government line agencies had followed traditional top-down approach to planning, but the DDC made attempt to have adopted of topdown type of planning system. The real bottom-up approach was followed by LNGOs. Comparatively, capabilities in terms of project management, technical skill of staff and financial resource were better than the capabilities of other agencies. Regarding GOs, the main problem was related inadequate personnel and very limited financial resources. Lack of technicians and weak financial management skill were the main problems of LNGOs. To some extent, coordination mechanism was better in GOs and they had strong motivating capabilities to motivate to target group. Irrespective project type, the degree of participation was the highest in implementation followed by decision making, monitoring and evaluation, respectively. By type of agency extending support for project planning and implementation, INGO/NNGOs, ranked first in mustering public participation. POs and GOs, ranked second and third respectively. By objective/nature of project villagers' participation was higher in income generating project than in infrastructure development project. Household earnings, food adequacy, education, age, household size, ethnic affiliation, institutional position, satisfaction with project performance, training, were the major socioeconomic factors influencing participation. In order to muster active public participation in rural development it is suggest to adopt comprehensive strategy with focus on promotion of NGOs participation in rural development, participatory planning, participatory program, participatory monitoring and evaluation, institutional capabilities, and information system creation. |