As pointed out in the previous chapter, the international debate on bioenergy is frequently limited to the topic 'food vs. fuel', meaning fuel for vehicles. Hereby, developing countries are mostly seen as victims of rising agricultural prices provoked by increased biofuel consumption in industrialized countries. The effects resulting from bioenergy production inside the developing countries are often neglected or reduced to criticism regarding the exploitation of small farmers and workers in large scale plantations. This chapter will define mechanisms through which both, the global bioenergy market and bioenergy production inside a country, can positively and negatively, directly and indirectly, affect rural development, poverty reduction and food security of developing countries.