Knowledge, learning, and innovationare one of eight objectives that will be monitored in theBank's new strategy. The independent evaluation group(IEG) is conducting a program of learning and resultsevaluations to promote a better understanding of how theWorld Bank acquires, captures, and transfers knowledge andlearning in its lending operations, and what scope there isfor improving. The objective of the program is to delineateattributes of effective learning in World Bank lending.These attributes refer to learning into lending (inputs intoproject design); learning while lending (feedback andmodifications of design and implementation while the projectis underway); and learning from lending (lessons from theproject that were transmitted to other projects). Theevaluation program will assess how the Bank can becomebetter at generating, accessing, and using learning andknowledge in its lending operations. It acknowledges theimportance of the feedback from knowledge to learning andfrom learning back to enhanced knowledge. The report isorganized as follows: chapter one gives approach andcontext. Chapter two explores two essential aspects oflearning - knowledge exploitation and knowledge explorationand the factors influencing them. Chapter three examines thecontribution of mentoring. Chapter four addresses the extentto which incentives, leadership, and culture are aligned topromote learning in lending. Chapter five considers theimplications of the report's findings, for theBank's change process, for IEG, and for the design ofthe second evaluation in IEG's learning and results series.