Contrasts institutional and community-based care for separated children. The paper analyzes the impact of institutional care on both child development and children’s rights and identifies the negative factors of institutional care, including segregation, discrimination, and isolation experienced by institutionalized children, admission based on the needs of the parents but not the interests of the children, lack of personal care, stimulation, opportunities to learn about the roles of adults, and attention to psychological needs, the high risk of institutional abuse, and insufficient preparation for life outside the institution; examines preventive approaches aimed at avoiding unnecessary separation of children from their families, including day-care facilities, parenting education and job training for single mothers, and programs to support families caring for a child with a disability; and summarizes the advantages of community-based fostering programs. Children who are fostered within their own communities and cared for by familiar adults are more likely to have their developmental needs met, become equipped with the knowledge and skills required for independent life in the community, and retain a sense of identity with their community.