By using Deodhar's combinatorial setting and Bernstein Gelfand project
ive functors, this paper provides some necessary and sufficient condit
ions for a highest weight category to have a Kazhdan-Lusztig theory. A
consequence of these conditions is that in the semisimple Lie algebra
case, the Kazhdan-Lusztig conjecture on the multiplicities of a Verma
module implies the nonnegativity conjecture on the coefficients of Ka
zhdan-Lusztig polynomials.