Chapter 1 provided an account of the problematic of non-state regulation. It included a distinction of three types of non-state regulatory initiatives, an analysis of how they approach the regulatory function and tend to contribute to the promotion of development, along with an evaluation of their effectiveness as regulatory mechanisms. The chapter also suggested that the potential of such initiatives might be enhanced if they were to work more closely with states and intergovernmental organizations (IGOs), as this might facilitate a transition to harder law. This chapter takes up this question of a potential transition to harder law. It begins by first delineating the key feature of the notion of governance as a form of regulatory strategy and then by examining how given instances of such a strategy are likely to be contested. Next, three strategic models of governance are distinguished, based upon different economic development strategies that states might adopt. The prospect of these different models generating harder forms of law that will contribute to development is then explored by examining some illustrative cases. The chapter concludes with some reflections on the constraints that structures place on regulatory reform efforts and the ongoing NorthSouth tension within such efforts. © 2012 United Nations Research Institute for Social Development (UNRISD).