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A key element of the World Bank’s support, especially after Mr. Wolfensohn assumed the presidency, is ensuring that the large amount of resources devoted to these 1,500 projects in the portfolio is used as effectively as possible in reaching our shared goals of sustainable eco- nomic development and poverty alleviation. The track record of the recent past in this respect leaves something to be desired. Roughly speaking, at completion, about one-third of the projects the Bank finances do not measure up to the high standards initially set for them. Development is a risky business; it involves complex issues. It takes place in countries where institutions are weak, and it seeks inno- vation. Given this context, clearly nobody expects that every single project at the Bank will achieve all of its objectives; nevertheless the Bank does believe that there is room for improvement.