The study was carried out to assess the extent to which the intervention of traditional leaders is effective in mobilising support for community development projects and to examine the perceptions that communities have about the role of the traditional leaders in development projects. The study has been guided by the critique of neoliberalism which exposes the negative effects of implementing the Structural Adjustment Programmes (SAPs) in Third World countries. The literature that has been reviewed has looked at the historical and political background of the role of chiefs and other traditional leaders in order to assess the nature of participation that is promoted through their involvement in development projects. An overview of the neo-liberal prescription and its critique has been made in order to expose the effects of the oil embargo of 1973 and the debt crisis of the 1980s on the economies of Third World countries in general and Malawi in particular. On the basis of evidence which has been gathered through a survey and focus group discussion, the study has found that the intervention of traditional leaders is very effective in mobilising communities for development projects. It has further been established that communities have high regard for their traditional leaders and that they perceive them as crucial role players in the conception and implementation of development projects. The study has however established that traditional leaders use unorthodox means such as threats of punishment to solicit the cooperation of the community members which in essence is counterproductive to the participatory approach to development.