This paper examines the compatibility and conflict between human rights advocacy and aid policy of international financial institutions by adopting the World Bank’s good governance strategy. Considering third-world development, this strategy since the 1990s has aimed at incorporating human rights by adding the concept of political conditionality into its decision-making process of granting loans. However, this policy fails to build substantial linkage with human rights, owing to the assumption that the World Bank needs only to tinker with its aid implementation or procedures in order to humanize development programs, and turn them away from their sole preoccupation with materialistic values such as economic growth. Therefore, this paper begins with an analysis of the good governance agenda in terms of governmental intervention. This paper then explores how the World Bank’s institutional mandate has become the template for justifying only those human rights that are consistent with development projects that still give priority to investment, growth, and productivity at the expense of social welfare entitlements. This paper concludes that this strategy neglects to redesign the priority of development projects such that they give up the primacy of growth over equity concerns. It merely rearranges the implementation of pre-designed projects by broadening the participation and consultation of local groups and citizens. The need to review the current unbalanced nexus of developmental policy and human rights promotion to build an aid pattern with social rights are essential. However, local elites will possibly constrain challenges to their own interests and attempts for social change and economic reform.