The Operations Evaluation Department's 22nd Annual Review reports on the results of 264 completed lending operations evaluated in 1995, representing disbursements of about 2 billion to 80 countries. It analyzes performance trends and explores new gro und on portfolio risks. The analysis highlights the kinds of actions needed if the Bank is to dramatically improve its performance, which continues to hover at the two-thirds or 70 percent satisfactory mark. The report finds that the Bank must:(1) nurture borrower ownership of the operational goals, by relocating the initiative's locus, strengthening the policymaker's level of conviction and political will, and increasing efforts at consensus building; (2) supervise and effectively monitor projects, appraise them more realistically, and adapt them to changing conditions; (3) increase the use of pilots for demanding and complex projects, and seek partnerships in high-risk situations; (4) realistically assess the country's conditions and capacities and use non-lending assistance instruments to improve portfolio performance; and (5) fine-tune Bank strategies by country and sector. The Annexes in the second volume contain statistical tables and a description of the methods used to assess portfolio risk and management options