In post-conflict Mozambique, over a period of roughly twelve years, we witnessed an amazing economic turnaround. There has been a reversal from a GDP growth of minus 8 percent, to one of plus 8.2 percent. This was due mainly to a successful capacity development program that relied on the participation of all sectors-government, private sector, civil society, and international donors. The Note provides a summary of the Prime Minister of Mozambique - Ms. Luisa Diogo - presentation at the Capacity Matters - Operational Implications Conference, held in Washington, D.C., on June 8, 2005. She highlights the measures of success above all require economic growth to improve living standards; then strengthening institutions, followed by growth of the private sector, and the involvement of civil society. Most importantly community development t, i.e., the basis for the country's capacity development.