Abstract There are two parts to this chapter. The first relays the continued rise of a PSG agenda driven by staff who favored “demand side” governance. This includes the replacement of the 2000 Public Sector Strategy with the 2007 (and, later, 2012) Governance and Anti-Corruption Strategy. The normal bureaucratic politicking and sector policy debates were present throughout this period. However, during these years there was an added dimension: Bank President, Paul Wolfowitz. His dismissal of the new draft Strategy, his behavior before the Bank’s Board, and the resulting public airing of Bank staff complaints ensnarled the sector agenda. The astute “use” of civil society actors by certain Bank staff to lend support to their demand side governance agenda had a dual purpose: to push back against broader concerns about Wolfowitz and to push forward a demand side dominance of sector policy. While Wolfowitz’ early departure is not removable from his internal behaviors and conflicts of interest, his attempts to alter lending incentives and to override internal staff discussions about this agenda ultimately led to his early exit. The second part of the chapter details a continued ascendancy of PSG under a new Bank President. This led to PSG (and by extension, PSM) achieving a first for any Bank sector, past or present: the creation of a Bank-wide Governance and Anti-Corruption Council with the remit to link demand side governance (and public sector management) with other sectors of Bank work. By 2012, this sector had become the Bank’s DNA.
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