Despite increasing attention by donors to Security Sector Reform (SSR) and Rule of Law development (ROL), results have been mixed. This article explores conditions within recipient states that shape the outcome of these programs. Drawing from literature on state-building, I argue that the development of security and justice institutions reflects relations among political elites and citizens. Concentration of power by ruling elites as a result of a narrow political base or discretionary control over revenue undermines incentives for leaders to accept constraints on executive power. Regimes rooted in broad or fragmented coalitions without easy access to revenue are more likely to accept legal and institutional constraints. The outcome of rule of law development and security sector reform programs is largely determined by donors' impact on these conditions. I illustrate these dynamics in three post-conflict countries, Bosnia and Herzegovina, Sierra Leone and Timor-Leste, where donor-funded programs have yielded varying results.