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This book is intended as a guide to conducting a participatory analysis of the needs and demands of local people. It is based on an approach which differentiates by socio-economic status, gender and age. Part one presents the conceptual framework and the methodological approach adopted. Part two considers the four stages of carrying out participatory demand analysis: diagnosis; identification of demands; systematising and interpreting the demands; and feedback on the preliminary results. Part three explains how the manual can be used in formulating development plans. Part four outlines the various techniques which can be used, and gives an example of how the manual was used in Bolivia.