Over time, PBL evolved to provide budget financing for development and its policy focus changed significantly. The focus during the 1980s on structural adjustment, reforms to trade and state-owned enterprises (SOEs), and the removal of relative price distortions and subsidies resulted in second-generation reforms designed to deal with long-run social and institutional issues, e.g., expanding access to essential public services and reducing poverty. In short, a more developmental approach was followed. This period also saw a move away from development-partner-driven reform agendas to an approach whereby development partners aligned their programs with country-driven development strategies and harmonized their practices with country systems, with governments firmly in the driving seat. Toward the end of the 1990s, reforms in public sector management, private sector development, and the social sectors began to emerge and this moved the focus away from structural adjustment and from industry, energy, and agriculture policies. This reflected a shift in countries’ agendas, as well as a growing realization on the part of the development community that social, political, and economic institutions are critical for the sustained implementation of sound policies and for growth and poverty reduction.