The relation between household income food intake and nutritional status in less developed countries is examined and a framework that explicitly relates household behavior patterns with public policy options designed to improve the nutritional status of the rural and urban poor is presented. For rural areas nutritional and health status depends largely upon the levels of private inputs provided by households. In turn level depends upon income. Consequently increasing income may also lead to improvements in nutrition and health status. Regrettably post-World War II development strategy in most developing countries has undervalued the potential contribution of agricultural development to economic development. Domestic economic policies practiced thus far have most probably had serious negative effects upon the nutrition and heal status of the poorest segments of developing nations. Economic development policy reform is therefore called for as a measure to alleviate rural poverty in developing countries.