Weaknesses in core government functioning remain a critical impediment to long-term development and reinforce cycles of fragility and poverty. While development portfolios have continued to grow in scope and ambition, the centrality of good governance and the need for functioning institutions remain. This report analyzes the processes used by the International Development Association (IDA) to diagnose state capacity and provides recommendations to improve the direct link between diagnostic findings on core government functions and actionable insight for improved development outcomes. For more on this subject, see our short overview of ISE’s research on IDA and the implications for IDA20’s early replenishment.