Development policy makers and practitioners are becoming increasingly sophisticated in their ability to target ‘development’ interventions and the psychological domain is now a specific frontier of their interventional focus. This landmark study considers the problematic relationship between development and psychology, tracing the deployment of psychological knowledge in the production/reproduction of power relations within the context of neoliberal development policy and intervention. It examines knowledge production and implementation by actors of development policy such as the World Bank and the neo-colonial state - and ends by examining the proposition of a critical psychology for more emancipatory forms of development.