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This study discusses the history of open source, how open source works, and why developers contribute to open source. After examining open source markets and business models, it presents a strategy framework and strategy map for developing countries to go down the open source path. Finally, it presents a classification of the current status of developing countries in relation to its IT policy and infrastructure and how a donor agency can assist in exploiting open source to create value in the economy. A case study of Sri Lanka illustrares how the donor action plan, strategy implementation and strategy map all tie together