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Presents the report of a Privy Council task force with the mandate to develop practical recommendations on the management of horizontal issues focusing on improved coherence and improved collaboration. Inputs to the task force work included the experience of its members, a review of the literature, case studies of recent experience within the federal government and with various interdepartmental co-ordinating mechanisms, and workshops and related research involving groups of managers and senior executives focusing on barriers to interdepartmental co-operation. The report begins with an introduction on the changing nature of governance, the fundamental problem of governance, and the growing need for policy co-ordination. It then examines the nature of policy development and explores the approaches for addressing horizontal issues.