This report, based on an overview of recent regional developments, summarizes the revised World Bank assistance strategy for rural development in the Eastern Europe and Central Asia region. The rural sector includes the people; the economic development activities; the institutional, economic, and social infrastructure; and the natural resources of rural areas, and is thus not confined to agricultural alone. But this report focuses principally on Bank activities that support rural development and policy reforms designed to improve well-being and increase the competitiveness of all rural enterprises. Natural resources and social issues are addressed separately. Chapter 2 looks at the reform process in the rural sector, particularly the increasing differentiation between Central Europe and the Commonwealth of Independent States (CIS). Chapter 3 examines the Bank ' s strategy for rural development as manifested in its Country Assistance Strategies (CAS) and existing loan portfolio in ECA countries. Chapter 3 ends by discussing the Bank ' s achievement targets and components of its regional strategy.