In discussions concerning the effects of developing country policies on agricultural services, extension, rural infrastructure and energy, health care, water and sanitation, it has to be realized the fact that there is no unique pattern of development policy followed by all developing countries. The general characteristics by which developing countries are typified should be considered in order to explain the effects of development policies of developing countries on the above-mentioned issues. This research study assesses situations in relation to agricultural services, extension, rural infrastructure, energy, health care, water and sanitation in Bangladesh and Ethiopia (with special reference to the Amhara National Regional state (ANRS) in north-west Ethiopia where, currently Finnish assisted water projects are under implementation). The aim is to produce suggestions/recommendations for use by the Department of Cooperation Policy of the Finnish Foreign Ministry.