This paper presents a case study on two consecutive 4-year projects funded by IFAD that used participatory action research (PAR) to develop women-led yarn spinning businesses in rural Tajikistan. The case study explains how the PAR approach contributed to the project success and how it was affected by different compliance environments. The first project, managed by ICARDA, operated in an enabling compliance environment that supported field-level action based on a PAR-driven learning. The second project, managed by AKF, faced a high-burden compliance environment that affected field-level decision-making and created unforeseen costs for the project. The paper argues that cooperative learning and decision-making by the field staff and the stakeholders, facilitated by low burden compliance, is a cornerstone of effective, sustainable development. High-burden compliance systems can jeopardise project effectiveness and sustainability by prioritising procedural conformity over participatory, knowledge-based action.