The events of 2005 have once again proved the correctness of the World Bank's country assistance strategy. Strategically, it focuses on three important issues. First, if there are efforts for financial reforms we will support them. Examples include the Poverty Reduction Support Credit (PRSC). Secondly we support reforms that contribute to the creation of people-centred government. Since any system can be dismantled, it is only planned progress that can help reduce losses and misuse. Enabling the process of public policy making, increasing transparency and responsibility and capacity building fall into this group. Handing over schools to community management, the Midterm Expenditure Framework and the Purchase Act are some examples. The third change that we support is the decentralisation of resource management to the local government and communities. This helps transfer social and political momentum to the more disadvantaged groups within communities and we believe that it will, in the long run, provide the drive for the transformation of Nepal into a more open and fundamentally democratic society. The year 2005 was a difficult one. It steered its course from the king's 1 February move and the Maoist conflict escalated. On the other side, the coalition between seven parliamentary parties developed gradually. At the end of the year, these three forces put forth their respective, somewhat unclear, stands for possible peace and the restoration of democracy. Where these latest developments will lead Nepal remains unclear. But even with the setbacks of 2005, we should not give up hope. We need to have a long-term vision for Nepal. If we fail to develop one, we will be overlooking the real challenges of the country's development. The year 2005 has reminded us that we need to work on the fundamentals. Who knows? In 2006, Nepal could see its luck return again, just like during the reform process of 2003.