When the contribution women make in production is not taken into account by development agencies, the introduction of technological change and large-scale projects may result in the destruction of the domestic economy and the impoverishment of families. Increasing rates of infant mortality are evidence of the polarization of wealth and the limited access to the means of production women and children in developing countries are permitted with the penetration of capitalism. As the ultimate unit of production in resisting the encroachment of capitalism, the domestic unit has subsidized the costs of capitalist production. Theories of the domestic mode of production are discussed in relation to development planning. Models focusing only on economic factors are seen as too limited to assess the outcome of development planning because of the cultural imperatives motivating behavior. Nine cases of development grouped according to type of innovation, e.g., the adoption of cash crops and mechanization; large-scale development projects such as dams, craft and industrial production; and forced migration, are discussed in relation to the following variables: (1) changes in the composition of ti1e household, (2) changes in the division of labor within the household, and (3) migration of members of the family. The author concludes tl1e article with a series of propositions about the relationship between these variables and the success of the projects measured in terms of their contribution to human welfare.