This consultation process re-opens again the cycle PSM-policy thinking but still a low understanding of the relationships between institutional change, , in-country resources for problem-solving (norms, standards, values), and incentives. Despite the operational experience, the overall knowledge drawn from the first review of difficulties and delays in project implementation made since the establishment of the PSM unit in the WB and the launching of a large program in this area in the 80s (see Arturo Israel, 1987) has not changed noticeably. There seem to be two reasons, one is the dominant quantitative bias and thus neglecting organizational analysis and local politics (less quantifiable aspects), and the second is the lack of a theory of government (or at least of an integrated concept of ‘governing of government’). Consequently this is a muddled area (governance/governability/network governance/governing/new government/societal governance) that does not help to a fruitful dialogue between economists and specialists from other disciplines as political science. The bottom-line is that everybody talks about ‘incentives’ but nobody seem to know exactly how to manage them as to elicit better performance in a public agency. I trust that soon there will be a follow on WB report taking stock of set of incentives used in this area.