ABSTRACT
This chapter discusses the critical issue of maintaining an active role for the state—in other words, the World Bank's client—within the Comprehensive Development Framework (CDF). In implementing the CDF, with so many partners engaged in so many issues, it is easy to lose sight of the essential contributions of the state in the policy reform process. Policy reform must be accompanied by attention to its impact on poverty, inequality, and social cohesion. Policies of poverty alleviation take on a salience in poor and rich countries that middle-income countries may find surprising and often confusing. Governance is an issue not only for states or corporations, but also for Non-Governmental Organisations and for international organizations. The idea that "soft power" is more important suggests that an organization's credibility relates directly to its transparency. Business associations often are essential intermediaries in the fight against corruption.
