This study reviewed a broad range of existing reform options, and on the basis of this review proposed a number of initiatives for institutional reform in developing countries. This strategies were intended to help FAO staff to provide guidance to the developing countries for the reform of their agricultural and rural extension systems. The paper defines the distinction among extension as a function, agricultural extension as part of a larger knowledge triangle, and agricultural and rural extension as an expanded concept of knowledge and information systems. The focus is on new measures that promote food security, market-driven system, and highly competitive agribusiness enterprises. Moreover, this study focus on the tensions that exist between the modern force of globalization and the traditional forces of culture, geography, and community.