This paper analyses the strategic and organisational reasons for the failure of development programmes. The analysis of a selected Indian public health programme, namely, Goitre Control has been attempted to bring out the mix of factors responsible for poor performance. It is argued that the reasons identified in the case study are not unique to this programme. Evidence from Goitre Control and the recent experience of the Integrated Rural Development Programme is presented to support a set of propositions on why development programmes fail. The policy implications of the study are summarized at the end of the paper.