As a part of an effort to bolster the United Nations Children's Fund's (UNICEF) capacity to promote child development, this report examines the psychosocial development of the child. The intent is not to shift UNICEF's attention to the psychosocial elements of children's needs, but to help UNICEF to implement early childhood development efforts with adequate awareness of children's psychosocial needs. A brief background statement is accompanied by recommendations to the executive board. Subsequent chapters concern: (1) early childhood development in perspective; (2) child development projects in developing countries; and (3) policy and action implications. Chapter I discusses the problems of identifying children at risk of psychosocial deprivation, the causes and consequences of this deprivation, and the possibility of counteracting it. Chapter II reviews a range of projects which focus on early childhood development and draws conclusions about organizational aspects of programs. Chapter III discusses policy and action implications of conclusions presented in earlier chapters and offers general guidelines for UNICEF support of early childhood development activities. Appendixes provide an illustrative list of psychosocial stimulation activities for the young child and a table listing main problems of child development and responsive program emphases for different socioeconomic situations. (RH)