During the next decade the IAU intends to mobilize talented astronomers, engineers and teachers around the world, in the service of developing countries. I shall review the content of the IAU Strategic Plan 2010 - 2020 “Astronomy for the Developing World” and give you an update on its implementation. Astronomy is a unique tool for stimulating capacity building because it combines cutting-edge technology with fundamental science and has deep cultural roots. The plan envisages a substantial increase in IAU education and development activities during the next decade. These activities will be bottom-up, with a strong regional influence. An integrated approach tailored to the conditions and needs of each country will involve a mix of education at primary, secondary and tertiary levels and public outreach. As a crucial component of the strategy, the IAU together with the South African National Research Foundation will set up a small office to coordinate and plan the various global activities at the SAAO in Cape Town.