The World Bank's work in the area of governance is clearly guided by the fundamental mission of poverty reduction, whether through enhanced accountability for public resources, better delivery of public services for the poor, improved policymaking, or a more conducive climate for investment. The aim of this report is to evaluate progress to date in implementing the World Bank's strategy for governance and public sector reform. Part I of this report synthesizes the issues and progress across the World Bank and Part II highlights specific challenges and approaches of individual regions.