This report was published by the World Bank for the World Bank Annual Meeting in October 2004. This paper provides the background for a call to action. Part 1 reviews the changes in development thinking and development practice over the past decade. Part 2 shows that development progress has been mixed—with fairly impressive global aggregates, with rapid poverty reduction and continued advances in social indicators, but with highly uneven distributions of those gains. And despite some progress on policy environments and aid flows, both developing and developed countries have failed to deliver fully on the commitments to extend these gains. Part 3 looks at the worlds of 2015 and 2030 and maps out a course for action in the next decade. This paper was discussed at the Stakeholders Meeting at AGM2004.