The Villa Borsig Winter Workshop brings together thinkers and policymakers from Europe, the United States and developing and transition economies to brainstorm and debate conceptual and operational issues for the annual World Bank World Development Report. The second annual workshop held in February 1999, explored the broad and complex relationship between exclusion and poverty, reflecting on the theme of ‘Inclusion, Justice and Poverty Reduction’ of the World Development Report 2000/2001. This report aims to move beyond the revisited issues of poverty and development, to investigate themes and approaches that have surfaced in the 1990s, and that will continue to influence development thinking into the next decade. Important themes include non-income dimensions of poverty, exclusion, inequality, and poverty; global technical change, trade, and the poor; vulnerability and safety nets; and the institutional basis of success or failure in interventions. This volume contains the complete documentation of the proceedings of the workshop.