International Bank for Reconstruction and Development/International Development Association World Bank and IDA Annual Report 1966/1967 FrL CO 0PY . . ,,,,� . п � � �^ � ,., �кг � �i • �у.. �,' . { � I � � �� � � �..� � _ �� � q' � � � '� ; � � � �► t ��i ,� � f�,� -. �� �,�` > i. _ z � т у � � _ `� , . � � 'l � �- � уΡ� � -�- k 4 � ( �у � �ti� , � � !� , ` ti' �_ .. � � � �� ,� � � � � ,� , �� , � � .� � . . � �� � � ��� � ''1 � ,_ �Т �.�! r � � �. , т � • * ' � , ,� . ' i . , . ..,ь,г�,�,�� � • � �1�� . , � �,,�� :у � , � . � _ п '� �г �. � � � � ���� .� i �� � : � �'ю � � �• � . •�t �', •�r��1 . �, 4� � � , _ � � , . � � � � t�` �� , � �'� . ' 1 �� � ' • ` � в �p � � f � � ��� � � / • � ' � �й � � i. � ` � �� � �� � j _ '--- • �. � ''` � � � ry ,l � i -'�' _ � � в ` ,� ,мА, 4 � _ г s , \ �с- � "у� v { � ��''1, � Т �t�y �-� � � 1 г ' ' �� � �. � • , � � в � б + �� R , �� . ,� � ��.� � �� ! 4 .. � �� �+С � - _s•• � �° в � �'��}� � � �� , � � � }� � а ,, � � � , �� � �� � � � р �� , *ы ,� j�� ° �, ы ; .,: � и. , _ _ . �' 4� _� г.' г . �,, � > � �� � � _ � � ����_•-�. �� � i � : � � �: ��,, "� � .. ��^ � ,�� гд �,,в . . ' ' � • О�� � �� , � . s � � � '� � � � �� ; �, � � � � ,г `, _ . � . ��� . „� �� � ��• � � � � � � ' � Ъ .� � In 1966,167, 46 Bank Loans were made in 33 countries and ene loan to the International Finance Corporation, totaling the equivalentof $876.75 million. In 1966167,20 IDA Credits were made in 14 countries totaling the equivalent of $353.54 million. T he World Bank Group is a cluster of securities by new or expanding enter- lish and maintain its high standing in the three institutions. At the center is the prises. IFC operates in countries with a money markets of Western Europe, the Bank itself. It is the world bank-the only reasonably high level of savings and en- United States and Canada. thing of its kind. Our members, share- trepreneurship; and more than half its The instrument the Bank was given for holder governments, are spread over the $200 million of commitments are for enter- dealing with its member countries was world; our financial resources come from prises in Latin America. capital. This capital, to use the words of all over the world; we finance projects in The operations of the three institutions, the charter, was to be applied to "projects, all quarters of the world; our Executive Di- although each has its own separate finan- large and small alike." But one of the first rectors, officers and staff are from all parts cial assets, are closely integrated. things the Bank found out was that many of the world. The founders gave the Bank a priceless of its clients did not know how to prepare The Bank is now 21 years old, and has gift in the form of an extraordinary charter, projects. We had proposals, to mention a Ipnt some $10 billion (of which more than called the Articles of Agreement. This char- few, for dams that would be starved for $3 billion has been repaid or sold to other ter endowed the Bank with three faculties. water, for electric power systems that investors), mostly in developing countries. First, it gave the Bank an aptitude for would lack customers, and for highways Its loans are long term, at more or less cooperation. In fact, the Bank is a true that would not fit local traffic and terrain. conventional rates of interest, for projects cooperative, deriving its resources from its In these circumstances, it seemed plain of high economic priority. About a third of members and using these resources for that if the Bank were to help finance any its lending has been for electric power de- their benefit. Its member governments are considerable number of projects, it would velopment, a third for the development of not only its principal debtors, but also its have to offer advice about how to prepare transportation, and the rest for agricul- shareholders and large creditors. them as well. The Bank therefore not only ture, industry and education. Second, the Bank was given the oppor- closely examined proposals through stud- Flanking the Bank on one side is the tunity to be independent. It was not to rely ies of documents and visits to the field; as International Development Association, en- solely on paid-in capital from govern- cooperator and expert, it also developed gaged in the same kind of business, but on ments; in addition, it was enabled to pro- the practice of suggesting modifications much easier conditions of repayment. IDA, vide the larger part of its resources by or further study whenever necessary. It as we call the Association for short, lends borrowing in the world's capital markets. quickly found itself playing-and has since to the poorest countries in the Bank's It was cast in corporate form, and was continued to play-an advisory role of con- membership-those notable to borrow and given the capacity to earn a profit and siderable scope and variety, concerned service on conventional terms all the cap- become self-supporting. with economics, engineering, administra- ital they can effectively use for develop- Third, the Bank was given a fundamen- tion and other factors bearing on project ment. So far, most of its financing has been tal policy. It was commanded to base its execution. We discuss with the borrower done in Asia; and more than 70% of its operations on economic factors, and to what kinds of technical services are $1.6 billion of commitments have been stay out of politics. The Bank was thereby needed, we advise on how best to obtain made there. The purposes of IDA's lending given a hunger for facts, and a desire to these services and, if necessary, we draw reflect some of the most pressing prob- develop the expertness needed to under- up terms of reference for the consultants. lems of these client countries: theAssocia- stand and interpret the facts. At about the same time the Bank was tion has been particularly active in financ- All three of these faculties converged on discovering that projects often were in- ing agricultural and education projects. one objective: the economic growth of the adequately studied, we were also finding Flanking the Bank on the other side is Bank's member countries. out that they were planned without suffi- its other affiliate, the International Finance The Bank did not learn to exercise these cient regard for their setting in the econ- Corporation, or IFC. IFC works exclusively faculties all at once. In dealing with its omy as a whole. We early concluded that in the private sector. It does several things borrowing shareholders, the Bank has any developing country would benefit from the Bank does not do: it makes loans moved carefully from problem to specific having some kind of program as a frame- to private borrowers without government problem, elaborating its own policies and work for development, relating projects to guarantee; it invests in share capital; and marking out itstrails.TheBankhasworked each other, taking account of the avail- it underwrites offerings or placements of hard during nearly all its 20 years to estab- ability of financial resources, and giving 1966/1967 Annual Report World Bank and IDA thought to policy and administrative meas- ures as well as to physical projects that would accelerate economic development. We have therefore developed a practice of organizing expert missions to visit indi- vidual countries and to draw up compre- hensive recommendations that serve as a basis for working out a detailed develop- ment program. What we want, in a word, is to encour- age constantly improving economic per- formance by our developing member countries. Not every country can have, or even profit from, a detailed development program, but every country can aspire to have a well thought-out set of policies which will provide the conditions and mo- tivations conducive to economic growth. This is more and more what We find our- selves talking about with our member countries-fundamental policies to govern their day-to-day economic decisions. We are able to talk about policies and policy changes not as interlopers but as collab- orators-and sometimes we give agreed policies the final measure of support they need to tip the scales in their favor in the councils of government. George D. Woods President of the World Bank and its Affiliates Excerpt from Gabriel Silver Memorial Lecture Columbia University April 13,1967 Contents Page President's Letter of Transm ittal .......................................... 2 Financial H ighlights ..................................................... 3 Part 1: The Year's Activities ............................................... 5 Summary of World Bank and IDA Operations ............................... 5 Coordinating Development Assistance ..................................... 6 Loans and C redit ....................................................... 9 Financing Public Services .............................................. 9 Financing A griculture .................................................. 11 Financ ing Ind ustry .................................................... 12 Financing Education ........ ........................................... 13 Technical A ssistance ................................................... 14 Econom ic and O ther Studies ............................................. 16 T he B ank's Finances .................................................... 17 ID A 's F ina nce s ......................... .............. ................. 19 Settlem ent of Investment Disputes ........................................ 20 M em bership and Adm inistration ............................ .............. 20 Part II: Trends and Outlook in Development Finance ........................ 22 List of Tables and C harts ............................................... 23 O ve r-a ll T re nds ....................................................... 24 G rowth in Developing Countries .......................................... 25 Trade and Payments of Developing Countries ................ .............. 26 External Debt of Developing Countries ..................................... 30 Debt Accum ulation and Servicing ........................................ 30 Average Term s of Debt ................................................. 33 Capital Flows to Developing Countries .............. 33 International Capital M arkets ............................................. 35 Bank A ppendices ....................................................... 41 ID A A ppendices ......................................................... 55 Bank/IDA Appendices ................................................... 65 International Bank for Reconstruction and Development International Development Association September 25, 1967 My dear Mr. Chairman: In accordance with Section 10 of the By-Laws of the International Bank for Reconstruction and Development and Section 2 of the By-Laws of the International Develop- ment Association, I have been authorized by the Executive Directors of the Bank and the Association to submit to the Boards of Governors this Annual Report for the fiscal year July 1, 1966 to June 30, 1967. 1 have also been authorized by the Executive Directors of the Bank and the Association to submit to the Boards of Governors, in accordance with Section 19 of the By-Laws of the Bank and Section 8 of the By-Laws of the Association, the audited financial statements as ofJune 30,1967, and the Administrative Budgets for the fiscal year ending June 30, 1968. They are contained in the Appendices of the Report. Sincerely yours, LGeore D. Woods President Chairman Boards of Governors International Bank for Reconstruction and Development, and International Development Association 2 Financial Highlights Expressed in millions of United States Dollars Fiscal Years 1966 1967 Bank Loans of the Year ........................................ $ 839 $ 877 Sales of Parts of Bank Loans .............................. 82 69 Repayments of Loans to Bank .............................. 166 188 G ross Incom e ........................................... 292 331 N et Incom e ............................................. 144 170 Total of Supplemental Reserve ............................. 664 733 Total of Special Reserve .................................. 290 290 Total Reserves .......................................... 954 1,023 Borrowings (Gross) ...................................... 463) 554 Net Change in Outstanding Funded Debt .................... 82 269 Subscribed Capital ...................................... 22,426 22,850 IDA Credits of the Year ....................................... 284 354 Funds Available for New Credits ........................... 322 87 IBank Loans, Cumulative Total as of June 30,1967(2)............ $10,442 IDA Credits, Cumulative Total as of June 30, 1967.2) ............ 1,694 Total Loans and Credits .................................. 12,136 (1)tncluding bonds agreed to be sold. (2)[nitial commitments net of cancellations and refundings. 3 ' �М° ;� Ч ..�. . .ь�,; . r ,; - _ __ " __ -._-_ . �i �� ',5�, . h'п � `., , . ���.....5 �s�',.У;/� *нйл .+ '�л .,�j�r., , i��� ` k � �. , � - ,,�ч� г� . � - � � ,�� , УК �.F+ }, #'ьf #� У�� ��', ��!� $, ;i�i � ! • s� ` kt �'rf � � AC.s f �'t� ��' '�.f. S�'� �' �/. �fеt: � � i� � � � ` ; � l � . �".� i�� �� �о � � � � � �` .��' 7. �Э_`= С -= r1_ ~ � „� �. F j .� r� �, 1 , ,�1+ �`��rQ � `�4. ,. ���h►и,���п � ` - - i; - �, � •г . . �@'у,�,�М! �ь�.1� , 1' �. ;��� ь.� �f�G.•���. ' . а - °���� У , 4г. �`,'ги. �Er� � •�,,� 1 е� л � � 1 ,},,.!� ��0�.•j���л� � * ' _ � ,° .� � � С � ��,. ° �У 1 � ° � � г. � Р . Г:~ •'й�� ��� � гF � �. . � , �` � й .�� ., r �� � i lJ :•i. . � � s�� '� �. � ��, • � r;,`�,',С � С�,'�1вr" r �• • R�. '�Р� �% ° .�, "w �.1� . ' ` i _ , �. �:!'*` . Г'_ �Г q° � � � . .� ° !' г ` С � ' у' � ` , � ., t /'` � 4. ° !`� � � ь� , � { • � .а -_ - S � .� `�j/уΡ � , � г . I f � у � � • � . ` � .➢,, ,-� � , + '� ` �•�' �� • р � � •� � �#1' � "�j у у е��, 1 j. у. � г�� �1 +• r � С, F. ь .. ��У - � в €'+ �К . + С� , ' " 1 �� ' , �1 � � � , .° СС �,��рΡ � � �ь� д � �� ,�,� ° . . � ,.!. �. � д 't.°ii ��i _ � q �.���..'ai • ° � . : r • ..�+ы � д . ° +/4'�'1+�'.•... -'�-' ° � ,' г � л � i7 ° ,���.� .�. уΡ � ы� . ` У и'�д � .�+t�"� � S • � ' �gв% Ччl�� � • %F, �` � � - 5; ь _.. ° 5 �} 1'N�'1 i , Э� -�� ,а + ' ' , ."�. j�1�'�` � • r * °^ � ?!Т _ f. �•ё'1 э� f� � °�С�К�iY •!' (�9 f � _j � С� �,�F У ' . � . д( . �F^ r � ' , . . s� 6'� ��L/.( � "� �4 ` ,� �jи'� '\ J � '�, д ��. R.� ��\�/ ,� ki�� г; • . � -'s . _° � г С , , �,� , �м �rt�' ' � rryГ �r У ! М � 1Г + i � �s " '.3. `ф � � � ; , .*. . .. , � .,. i 4 ' �. �; ' 1 � � м * l у • �� : +'°у л ' � . � +' г . . '� � �� •у.в . 1�i1 , � 5 .1 �f • •.4 , .° �Г° � .Г° 'а ' д � . � f f .. . � �' у.1�. 1• . . i � * , � . �. . . . q.'� � . ,. t . : ���� � . • � �� �•'� � Е. �м 2� .. �.п . . . . F . . . tMe � � "•• � �. . , , . . �,� . F� . i ' . ..;�. ю. . � � � � � �_. ,�а ик^ 1t+ &^ . �V, ..х � Т . . wm . l • м'' б , ! , �� t �''у`° ' i •f��e+. � rA°; "� ` r Г 4 �6 м � • � . , j� �`�" ', •. f� � �. �. �г� /уΡ � ' �;,.�, � ° И •. . � � Part One: The Year's Activities n the face of severe difficulties, the [ow- Bank which lends to poorer member coun- country's import liberalization program. income countries have continued to tries on concessionary terms, was out of Loans for electric power development also make headway in developing their econo- funds which were not already committed rose sharply. There was a further increase mies. As set out later in this Report, their or earmarked for projects. A proposal for in financing of education projects, and Gross Domestic Product is tentatively esti- a second replenishment of IDA's resources funds made available for agriculture, mated to have risen by approximately 5% was made by the President of the Associa- though less than in the previous year, in 1966, about the same as the average tion in July 1966. It has been continuously continued above the level of a few years rate of growth in the period 1960-65. considered and discussions on amounts ago. Lending for transportation projects, in many of the developing countries, and conditions were being actively con- particularly roads, was again large. Details however, progress was notably slower. ducted as the fiscal year closed. of Bank and IDA commitments are given The problems presented by the rapid In several respects the year was one on pages 6, 8 and 9 . IFC's activities are growth of population and sluggish agri- of the most active in the 21 years of the described in its own Annual Report. cultural output, although being attacked Group's history. Total commitments by the The Bank's net income rose by $26 mil- with more vigor, continued to cloud the Bank and IDA amounted to $1,230 million, lion to $170 million during the year. Soon prospects; political instability and the compared with $1,123 million in 1965/66. after the close of the period the Executive diversion of scarce resources to non- The number of commitments rose from 49 Directors allocated $160 million of the net economic purposes were factors frustrat- to 67. Disbursements by the two institu- income for 1966/67 to reserves, and rec- ing economic growth in some countries. tions exceeded $1,000 million for the first ommended to the Board of Governors that The efforts of the developing countries time, increasing from $935 million in the the remainder, $10 million, be transferred -which themselves provide four-fifths of previous year to $1,133 million. to IDA as a grant. the finance for their own development- The International Finance Corporation The Bank took further steps during the continued to be affected by a shortage of (IFC), which assists less developed mem- year to foster coordination of external as- external finance on appropriate terms. For ber countries by helping to promote the sistance to developing countries. Action the sixth successive year there has been growth of the private sector of their econ- was also taken to promote close coopera- little improvement in the over-all level of omies, had another active year. The total tion between the Bank Group and other development assistance provided by the amount, average size and diversity of international and regional institutions. Ngh-income countries. At the same time, IFC's commitments all increased consider- The Bank again participated in numer- competing demands for capital have made ably. Commitments by the Bank included ous meetings and discussions of ques- it more difficult and more costly to obtain a line of credit of $100 million to IFC (so tions relating to economic development. ftance for development by borrowing in far not drawn down), the first following Its studies of key development issues were the world's capital markets. amendments to the charters of the two expanded. Two major staff studies, under- Like others, the World Bank Group en- organizations permitting the Bank to lend taken for the United Nations Conference countered money-raising problems during to IFC and IFC to borrow from the Bank. on Trade and Development (UNCTAD), the fiscal year, which ended June 30,1967. New commitments undertaken by the were completed. The World Bank borrowed a total of $554 three institutions during 1966/67 were as As the chart on page 10 illustrates, the million through bond and note issues, of follows: volume of projects on hand has been which $390 million was new money. The Number Amount maintained at a high level. The number cost of these borrowings, however, was - - of Bank economic missions to member W orld Bank ............. 47 $876.8 million higher than in recent years. At the end of IDA ..................... 20 353.5 million countries has increased. Comprehensive the fiscal year, the International Develop- I FC, ................... 14 49.1 million surveys have now been completed of ment Association (IDA), the affiliate of the A feature of the Bank and IDA's opera- most of the developing member countries' tions was a sharp increase in finance ex- economies. These have been particularly A Thai farmer walking beside a new irrigation tended to industry, to which more loans valuable in the case of newer member ditch. Funds from a series of Bank loans are assisting the construction of dams, and credits were made than to any other countries in Africa, where the Bank's ac- canals and ditches for the improvement sector. This was mainly due to substantial tivities have been expanding substantially. of Thailand's irrigation systems. IDA credits made to India to support that The Bank has been assisted in its activi- 5 Bank Loans and IDA Credits 1966/67 by Area ties in the fields of agriculture and educa- Expressed in millions of US Dollars tion by its cooperative arrangements with Bank Loans IDA Credits Total the Food and Agriculture Organization of Number Amount Number Amount Number Amount the United Nations (FAO) and the United Africa Nations Educational, Scientific and Cul- Ca,meroon1................ $ 7.00 1 $ 11.00 2 $ 18.00 tural Organization (Unesco). It has con- Congo (Brazzaville)....... 1 30.00 - - 1 30.00 tinued to work closely with the United Kenya - - 3 15.90 3 15.90 Nations Development Programme (UNDP) Kenya, Tanzania & Uganda 1 13.00 - - 1 13.00 Malagasy Republic........ - - 1 10.00 1 10.00 in project feasibility and sector program- Malawi ...................- 2 6.79 2 6.79 ming studies. Mal ...................... - - 1 9.10 1 9.10 A landmark during the year was the Senegal.................. 1 4.00 1 9.00 2 13.00 entry into force in October 1966 of the South Africa.............. 1 20.00 - - 1 20,00 Swaziland..n.d.......... 1 2.75 - - 1 2.75 Convention on the Settlement of Invest- Tunisia................... 1 12.00 2 19.00 3 31.00 ment Disputes Between States and Na- Uganda.................. - - 1 10.00 1 10.00 tionals of Other States. The Bank believes Zambia................... 1 17.50 - - 1 17.50 that the International Centre for Settle- Asia 13 $1 06.25 12 $90.79 20 $ 197.04 ment of Investment Disputes, which was Cina.................... 1 $ 14.40 - $ - 1 $ 14.40 established under the Convention, will as- India..................... 1 30.00 2 215.00 3 245.00 sist in improving the international private Iran. ................ 1 25.00 - - 1 25.00 investment climate and in stimulating the Iraq. .......... 1 23.00 - - 1 23.00 flow of private capital from the developed Japan 1 100.00 - - 1 100.00 to the developing countries. Jordan-.. . . . .. . . - 1 3.00 1 3.00 Malaysia................. 2 47.00 - - 2 47.00 Pakistan.................. 2 35.00 3 27.75 5 62.75 Coordinating Development Assistance Philippines............... 2 37.00 - - 2 37.00 As multilateral institutions with a broad Singapore................ 2 25.00 - 2 25.00 mandate from member governments, the Tailand2 11.00 - - 2 11.00 ................. 20 6 $ 2 1 . World Bank Group has certain advantage's Europe 1in the administration of development fi- Cyprus................... 1 $ 2.80 - $ - 1 $ 2.80 nance. The member governments of the Iceland................... 1 18.00 - - 1 18.00 Bank are also its shareholders, and thiM Turkey................... 1 10.00 1 15.00 2 25.00 circumstance creates the possibility of an Yugoslavia 1 10.00 - - 1 10.00 unusually close and cooperative relation- 4 $ 40.80 T $ 50 5~ $ ~580 unsalclsancoprtvreti- ship between the Bank Group and the Western Hemisphere Bolivia................... - $ - 1 $ 2.00 1 $ 2.00 developing countries. After 21 years of Brazil.................... 5 100.60 - - 5 100.60 operations and with an international staff Chile.........1.......... 1 60,00 - - 1 60.00 chosen strictly on professional merits, the Colombia................. 2 25.00 - - 2 25.00 Group has acquired special experience Ecuador 1 4.00 - - 1 4.00 Guatemala. ..a. 1.1 1 15.00 - - 1 15.00 and expertise in the development field. Honduras................ 2 13.40 - - 2 13.40 It has no political, commercial or other Jamaica.................. 2 20.70 - - 2 20.70 non-developmental objectives to distract Nicaragua................ 1 5.00 - - 1 5.00 it from its function of assisting the eco- Peru..................... 1 10.00 - - 1 10.00 nomic growth of its developing member Trinidad & Tobago........ 2 13.60 - - 2 13.60 Venezuela................ 1 15.00 - - 1 15.00 countries. In providing external finance for 19 $282.30 1 $ 2.00 20 $ 284.30 projects of high economic priority, and in International Finance Corporation 1 $100.00 - $ - 1 $ loo.oo offering advice on a wide range of devel- TOTAL4................. 47 $876.75 20 $353.54 67 $1230.29 opment problems in the less developed 6 countries, the Bank Group may help bring Nineteen aid-giving nations are now terms of aid which seem appropriate. about a more effective use of domestic associated with one or more of the Bank- When requested to do so, the Bank assists resources and of assistance made avail- organized coordinating groups. The Inter- the recipient country in preparing or re- able under bilateral programs. national Monetary Fund (IMF), the UNDP vising its development program and in One of the single most important ad- and, where appropriate, the regional de- resolving problems of execution. It may vantages of assistance from the Group velopment banks and other international also help to arrange feasibility studies, compared with most bilateral finance is organizations participate in the groups' determine requirements for other forms that it is not tied to the source from which proceedings. Membership of the groups of technical assistance, identify projects recipient countries may purchase goods is shown below. and establish an order of priority for and services. Borrowers from the Bank As outlined in last year's Annual Report, investments. and IDA are free, and indeed are required, the Bank assumes several responsibilities The chief development in the field of aid to spend the proceeds of loans or credits in its role as chairman of coordinating coordination in 1966/67 was the increased in whichever member country (or Switzer- groups. On the one hand, the Bank at- role of, and the heavy burden placed upon, land) they can obtain the best value. The tempts to provide information and objec- the India Consortium. Through the Con- difference to the borrowing country in tive judgments, based on extensive field sortium it was possible to organize non- purchasing power between tied and untied work, to assist donor countries in their project aid for India totaling $900 million. assistance can be considerable. deliberations. On the other, it assists the On the Consortium's behalf the Bank was Some of the advantages of a multilateral developing country wherever possible to also active in trying to find a solution to approach can be achieved by financing assess its needs and to take measures India's debt-service difficulties. Studies of specific projects with a combination of required to use assistance effectively. India's debt-service burden prepared by multilateral and bilateral aid, procurement For members of a consortium or con- the Bank's staff were the basis for discus- being arranged on an international com- sultative group, the Bank makes periodic sions on this subject at meetings of the petitive basis. They can also be achieved comprehensive reports on the recipient Consortium held during April. A working through joint consideration by aid-giving country's development possibilities, prob- party representing members of the Con- countries of the broad range of develop- lems and performance. It comments on the sortium considered aspects of the prob- ment problems of particular recipient country's own estimate of its aid require- lem at a meeting in March. countries. Such joint 'consultation helps ments and recommends the type and The Bank also undertook to coordinate the aid-giving countries to ensure that Recipient Countries their aims are consistent and that their Assisting Co- Ma- Mo- Paki- Thai- hssistance is being applied effectively to Countries lombia India Korea laysia rocco Nigeria stan Peru Sudan land Tunisia priority needs. It should also help to en- Australia x x x sure that the terms on which assistance Austria .... X isprovidedareappropriatetotherecipient Belgium.......X X X X X X X X X X X countries' requirements. Canada........ X X X X X X X X X X During the past year the Bank has or- China.......... X Denmarkr...... X X X X ganized three more consultative groups, Finland ........ x x for Korea, Morocco and Peru. Meetings France......... x X X X X X X X X X have also been held of the consultative Germany....... x X X X X X X X X X X groups already established for Colombia Italy........... X X X X X X X X X X X and Tunisia. In addition, the Bank has Jaupn x X X X X X X X X Kuwait .... x continued to play an active part in coordi- Netherlands.... X X X X X X X X X X X nating assistance to India and Pakistan New Zealand ... x X through the aid consortia formed for these Spain.......... x X X X Sweden X X countries in 1958 and 1960, respectively. Swlzer*and X X X X X X X X The consultative groups for Nigeria and United Kingdom X X X X X X X X X X X Sudan have been inactive during the year. United States... X X X X X X X X X X X 7 through the Consortium efforts to assist Bank Loans and IDA Credits 1966/67 by Purpose Expressed in millions of US Dollars India in meeting exceptional import re- Bank IDA Total quirements arising from the drought of Industry the past two years and the consequent Congo (Brazzaville)-Potash................................ $ 30.00 $ - $ 30.00 India-Iron and steel.............................0.... 30.00 - 30.00 serious shortage of food grains in several India-Industrial imports................................... - 215.00/ 215.00 regions of the country. This subject was Iran-Development financecompany....................... 25.00 - 25.00 discussed at the meeting ofthe Consortium Pakistan-Industrial imports............................... - 25.00/ 25.00 in early April, when new aid in the form Philippines-Development finance company......oma.y 2. 25.00/ - 25.00 of food and fertilizer, as well as aid in Turkey-Development financecompany.................... 10.00 15.00 25.00 forms which would release cash for the Transportation $1 20.00 500 $375.00 purchase of food, was indicated by Con- Ho duras-Port............................................ $ 4.80 $ - $ 4.80 sortium mem bers. Honduras-Roads......................................... 8.60 - 8.60 Iraq- Roads............................................... 23.00 - 23.00 At a meeting in June of the Pakistan Ja an-Roads .100.00 - 100.00 Consortium, members examined the levels Kenya-Roads.... - 5.30 5.30 of project and non-project aid (including Malagasy Republic-Roads........... 10.00 10.00 fertilizer im ports) which m ight be appro- Mali-Railways............................................ - 9.10 9.10 Pakistan- Raiways........................................ 13.50 - 13.50 priate for the Consortium to provide dur- Senegal-Port............................................. 4.00- 4.00 ing 1967/68. Discussions about possible Senegal-Railways......................................... - 9.00 9.00 joint financing of the construction of the Singapore-Port ......................................... 15.00- 15.00 Tarbela Dam in West Pakistan were initi- Trinidad & Tobago-Roads................................. 8.60- 8.60 ated under the aegis of the Consortium dur- Yugoslavia-Rosadslavi. - 10.00 ated-Rad under........mo..a-R....ads...17.50.5 - 17.50 ing the year. The Bank has indicated its $205.00 $ 33.40 $238.40 willingness to administer the fund set up to Electric Power finance this exceptionally large project. Brazil..................................................... $100.60 $ - $100.60 Chile . 60.......... .00............. 00 - 60.00 G rowing experience of the problem s Chirus..................................................... 6- 2.80 associated with the coordination of aid Guate ala................................................ 15.00- 15.00 has taught the Bank that coordination Iceland.................................................... 18.00- 18.OQ does not need to take any particular form. Malaysia.................................................. 37.00 - 37.00 Nicaragua .5.00 - 5.00 The Bank has found that a useful degree Pakistan................................................... 21.50 - 21.50 of coordination can be achieved by var- Peru...................................................... 10.00 - 10.0e ious m ethods, of varying degrees of Philippines................................................ 12.00 - 12.00 elaborateness. To achieve maximum ef- Singapore................................................ 10.00 - 10.00 . . South Africa .20.00 - 20.00 fectiveness in fostering coordination it Swaziland................................................. 2.75 - 2.75 is essential, in the Bank's experience, Thaland.................................................. 5.00 - 5.00 to m aintain a flexible attitude. This w as Venezuela................................................. 15.00 - 15.00 demonstrated in several instances during .d$334.65 $ - $334.65 Education 1966/67. For instance, at the meeting of Jamaica................................................... $ 9.50 $ - $ 9.50 the Consultative Group for Tunisia in mid- Kenyaen......ya...... .................... ............... - 7.00 7.00 M arch, the Bank undertook to form a Malawi.................................................... - 6.30 6.30 sub-group to discuss sector problems in Thailand.................................................. 6.00 - 6.00 Tunisia - 13.00 13.00 Tunisian agriculture. The Bank agreed to Uganda - 10.00 10.00 assign staff to organize this work. $ 15.50 $ 36.30 $ 51.80 Outside the formal consultative group Telecommunications Colombia $ 16.00 $ - $ 16.00 structure, meetings of donors and lenders Jamaica................................................. 11.20 - 11.20 of assistance interested in certain other Kenya, Tanzania & Uganda................................ 13.00 - 13.00 developing countries were held during the $ 40.20 $ - $ 40.20 8 Bank Loans and IDA Credits 1966/67 by Purpose (continued) Expressed in millions of US Dollars year. A third meeting of the countries Bank IDA Total interested in aid to Ceylon was held in Agriculture Tokyo in April, under the chairmanship Bolivia-Livestock development............................. $ - $ 2.00 $ 2.00 of the Bank. Brazil's economic position Cameroon-Plantation program............................. 7.00 11.00 18.00 and prospects were reviewed at a meeting China- Fishing vesses..................................... 14.40 - 14.40 Colombia-Irrigation and land development................ 9.00 - 900 organized by the Bank in Paris in July of Ecuador-Livestock development........................... 4.00 - 4.00 representatives of the major aid-giving Jordan-Agricultural credit................................ - 3.00 3.00 countries and main international financial Kenya-Agricultural credit................................. - 3.60 3.60 organizations. M alaysia- Irrigation........................................ 10.00 - 10.00 Trinidad & Tobago-Settlement and land development....... 5.00 - 5.00 For some time the Bank has been ex- Tunisia-Cooperative farming.............................. 12.00 6.00 18.00 perimenting with arrangements for com- $ 61.40 $ 25.60 $ 87.00 bining its own loans with bilateral export Water Supply credits in such a way as to bring about the Pakistan................................................... $ - $ 1.75 $ 1.75 most economical procurement of goods Project Preparation and services and the financial terms most Malawi.................................................... $ - $ .49 $ .49 appropriate to the projects and the devel- Pakistan................................................... - 1.00 1.00 oping countries concerned. In late June $ - $ 1.49 $ 1.49 the Bank sponsored a meeting in Paris International FinanceCorporation........................... $100.00 $ - $ 100.00 at which representatives of Belgium, TOTAL . . . . . . . . . . .. . . . . . . . . . . . . .. $876.75 $353.54 $1,230.29 Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland, the United Kingdom and the United States discussed the applicability Country Object of Study Bank Allocation of joint financing techniques and consid- Afghanistan....................Road maintenance................................. $ 155,000 ered certain proposalsforjointfinancingof Ceylon.........................Highway planning and maintenance study.......... 200,000 projects in Mexico and Colombia. Discus- Congo (Brazzay e) a.............Road feasibility.................................... 185000 sions on these proposals are continuing. Costa Rica .................... Feasibility study of Ports of Moin and Puntarenas .... 200,000 s hn on h s prsls a con ting Liberi Oi palm feasibility stuud. 36,000 The Bank was represented at meetings Li eria ......................... O l pal f a i lty s u y ........................... 3 0 Morocco.......................Reorganization of public services for agriculture..... 196,000 in London toward the end of 1966 of Nicaragua ..................... Feasibility study of expansion of Port of Corinto ..... 175,000 representatives of countries which are TOTAL ....................... ................................................... $1,147,000 creditors of G hana to discuss G hana's debt-service problem. It was also repre- sented at the first Ghana aid meeting held in Paris in April under the auspices of the International Monetary Fund. Bank ob- Country Object of Study UNDP Allocation servers attended meetings of representa- Brazil.........................Transport survey (Phase I) ......................... $1,730,000 tives of creditors of Indonesia in Paris in Burundi and Tanzania..........Buumbura-Kigoma road study..................... 359,000 December and in the Netherlands in Feb- Chile...........................Railway organization and operations................ 911000 ruary and June Costa Rica.....................Transport survey of the metropolitan area of San Jose 433,100 r Dahom ey.......................Land transport survey.............................. 512500 Ghana ........................Studies of two trunkroads.......................... 426000 Loans and Credits Kenya, Tanzania and Uganda.... East Africa transport study......................... 675,000 Financing Public Services M alaysia .......................T ransport survey................................... 1,315,100 Mali T ra n s p o t urey 20000 Despite the greater emphasis placed by M a i............................ Tr n port survey ..................... .............2 40.e p t h r at r e p a i l c d b Nigeria.........................Transport survey of mid-Western Nigeria............ 297000 the World Bank Group on agriculture, Tunisia .........................Preparation of a transport masterplan.............. 490,000 industry and education during the past TOTAL........................................................................... $7,352,700 several years, the largest part of the 9 Group's financing has continued to be five separate loans for electric power ex- will more than double the supply of power concentrated on high-priority projects to pansion in Brazil. Beginning in 1949, 17 in the country's Central Region. strengthen the infrastructure of the devel- loans totaling $468 million have been Loans or credits totaling $238.4 million oping countries' economies. During the made to Brazil for projects which will add were approved for transportation proj- past year a total of 37 Bank loans or IDA about 3.2 million kilowatts to generating ects, of which $183.0 million were for credits involving finance of $615 million capacity. As in other countries, Bank roads, $31.6 million for railways and $23.8 was approved for projects in the fields of finance has also helped to provide asso- million for ports. power development, transportation, tele- ciated transmission and distribution Road projects for which Bank or IDA fi- communications and water supply. facilties. nance was committed include a project to Of these, 19 loans totaling $334.6 mil- During the year the Bank made its sec- provide better transport facilities for agri- lion were for power projects. The provi- ond loan for power development to both cultural areas in Kenya, and projects to sion of adequate power supplies remains Iceland and Swaziland, its third loan to improve sections of two of Zambia's most one of the foremost requirements for Peru and Venezuela, its fourth loan to Pak- important trunk roads connecting the faster economic growth in the developing istan, the Philippines, South Africa and country with Malawi to the east and Tan- countries, where demand for electricity Thailand, and its sixth loan to Nicaragua. zania to the north. In Honduras, a Bank continues to grow extremely rapidly, often In the Philippines, power development was loan is being used to pave the chief route at a faster rate than the economy as also assisted by a $12 million investment for trade with El Salvador. The project will a whole. An example is West Malaysia, in the privately owned Manila Electric reduce transport costs on a major section where sales of the National Electricity Company by IFC, the first investment by of the Central American Inter-Regional Board(NEB)havemorethandoubledsince IFC in a public utility. A $15 million loan Highway system. In the Malagasy Repub- 1960. During the past year the Bank made was made to Guatemalafora project which lic, two sections of one of the most im- a further loan of $37 million to the NEB. In- cluding this loan, the Bank has extended World Bank Group: Projects under Way a total of $117.5 million to the Board, (identification, appraisal, negotiation) whose generating capacity will be over As of June 30, Years 1962to 1967 700,000 kilowatts by 1970, a fivefold in- so crease since 1958, when the Bank's first Agriculture loan was made. As in the case of the NEB, much of the Bank Group's lending for power has again been to help meet growing demand on 60 power systems that have been assisted by Bank finance in the past. Loans made for Transportation power projects in Chile and Brazil are cases in point. In December the Bank ex- 40 tended a loan of $60 million to help finance a further $500 million expansion program being carried out by Empresa Nacional de Electricidad (ENDESA) in Chile. In a series of loans over an 18-year period, the Bank 20 ----- has lent $125.4 million to Chile for power ---- ------------- ------ -- -- projects adding 950,000 kilowatts to nclusty Chile's generating capL --ity. Just over $100 million of the total II - I I II amount lent by the Bank for power proj- 1962 1963 1964 1965 1966 1967 ects during 1966/67 was accounted for by (MExcluding Development Finance Companies. 10 portant roads are being reconstructed. ognition that agriculture in these countries IDA are providing $18 million for a farming When completed, they will create a 375- must be developed and modernized as a project under which traditional subsist- mile trunk highway providing access from matter of considerable urgency, but a great ence smallholdings, which offer little or the port of Majunga to the interior. deal remains to be done before this prob- no scope for effective development, are Of the three railway projects for which lem is solved, being combined with other government finance was provided in 1966/67, two were The greater emphasis placed by the land to form viable production units. In complementary projects for the rehabili- World Bank Group on agricultural devel- Cameroon, $18 million is being provided tation and modernization of the inter- opment is reflected in the number of agri- for a large-scale plantation program which connecting railway systems in Mali and cultural projects coming forward for will considerably increase the area under Senegal. These railways together form financing. A total of 10 agricultural proj- oil palm, rubber, tea and pepper in the Re- Mali's principal route for the transport of ects involving Bank or IDA assistance of public. This project is also being sup- imports and exports through the Port of $87 million was approved by the Executive ported by a $6.4 million loan from the Dakar in Senegal. In April, the Bank ap- Directors during 1966/67. This raised the Commission of the European Economic proved a $4 million loan for improvements aggregate amount of finance provided by Community. The consolidation of small- at the Port of Dakar. the two institutions for agriculture to $1.1 holdings in Kenya into viable units has Finance was extended for a further billion. The volume of financing would been further assisted by an IDA credit of water supply and drainage project during have been higher but for economic, legis- $3.6 million. In Trinidad and Tobago, a $5 the year. The project will rehabilitate and lative and other difficulties in some mem- million loan has been made by the Bank expand the water supply, sewerage and ber countries. for the settlement of some 1,800 farmers drainage systems of Lahore, the second The continuing growth in the Group's on about 12,000 acres of government land. largest city in West Pakistan. For the first agricultural activities is indicated by the Finance for further livestock projects stage of this project, Sweden and IDA have increase in the number and diversity of was approved during the year. A $4 million agreed to finance 60% of the cost by each projects under investigation and consider- Bank loan to Ecuador is helping to finance providing a credit of $1.75 million. This is ation. At the end of the fiscal year on June a livestock project under which modern the second time Sweden and IDA have en- 30, 28 projects were in the process of techniques for the production of beef cat- gaged in the joint financing of a project appraisal or negotiation. About 40 others tie will be introduced into the country. This in-Pakistan. were in various stages of preparation. should prove of value in developing stan- The Bank has again financed projects The Bank has continued to provide sup- dards which could be adopted on a much for the improvement of telecommunica- port for large construction projects in the larger scale in Ecuador in the future, tiens. One of these is a regional project agricultural field, such as flood control thereby having a significant impact on the being carried out by the East African Posts and irrigation. The sector has also been a development of the country's livestock and Telecommunications Administration beneficiary, as in the past, of transporta- industry. Similar long-term benefits are to improve and expand telephone and tel- tion and power projects. The main devel- expected from a livestock development egraph services in Kenya, Tanzania and opment during 1966/67, however, was the program in Bolivia, for the first stage of Uganda. A loan of $13 million by the Bank increased number of projects financed or which IDA has extended a credit of $2 will cover about half the total cost of this under investigation by the Bank which in- million. undertaking. volve other aspects of agricultural devel- One of the essentials for the expansion opment such as farm credit, livestock of food production is the increased appli- Financing Agriculture production, land settlement, seed improve- cation of chemical fertilizers. On behalf of The World Bank Group has continued to ment, grain storage, and training and ex- the Group, IFC has taken the lead 'I dis- pay increasing attention to the develop- tension work. This was a reflection of the cussions aiming at establishing new ferti- ment of agriculture during the past year. Bank Group's policy, initiated in the early lizer plants in the developing countries in Arnong the developing countries the fail- 1960s, of becoming increasingly engaged partnership with domestic firms and oil ure of food production to keep pace with with broad agricultural development and chemical companies in NorthAmerica, population growth is causing increasingly programs. Western Europe and Japan. Three impor- serious difficulties. There is growing rec- In Tunisia, for example, the Bank and tant fertilizer projects in which IFC is par- 11 ticipating reached the financing stage in few individual experts and make them for utilizing existing productive capacity. 1966/67: in Brazil, India and Senegal. available on a reimbursable basis to mem- Of this amount, a total of $215 million was The Group has greatly strengthened its ber governments to help organize and extended to India as IDA's contribution to technical staff over the past few years to manage agricultural projects financed by the $900 million of non-project assistance enable it to become more effective in agri- the Group. that members of the Aid India Consortium cultural development. Assistance has con- agreed to provide during the Indian fiscal tinued to be received from FAO under the Financing Industry year ended March 31, 1967. This assist- agreement whereby the two organizations During the year, Bank loans, IDA credits ance was designed to support economic cooperate in the identification and prepa- and IFC commitments intended to benefit policy changes, including the easing of ration of projects to the point where they the private sector (apart from agriculture) import and other controls, initiated by the can be considered for financing by the reached a new high level of $524 million. Government of India. Since June 1964, IDA Bank or IDA. During the past year, the Bank This included the opening of a $100 mil- has extended four credits to help selected sent some 140 missions to more than 50 lion line of credit from the Bank to IFC, Indian industries manufacturing such member countries in connection with Bank the first since the completion of charter products as industrial and electrical ma- Group financing of agricultural develop- amendments enabling the Bank to lend chinery, heavy construction equipment, ment, in about 40 of which FAO partici- IFC, in effect, up to $400 million. With in- commercial vehicles, machine tools and pated. Under the Cooperative Program, creased resources, IFC is in a position to cutting tools, agricultural tractors, ferti- FAO sent an additional 40 missionstoiden- undertake larger individual commitments lizers and pesticides. tify and prepare agricultural projects. -up to $20 million-to assist the develop- During the year, a $25 million IDA credit In Africa, where the number of agricul- ment of the private sector in the develop- was made available to Pakistan for financ- tural projects coming forward for consider- ing countries. Three of the commitments ing the import requirements of several in- ation by the Group has increased sharply, undertaken by IFC during the year, in fact, dustries producing capital goods. They the Group has had the support of its Per- were for more than $10 million, as against include steel and non-ferrous castings, manent Missions in Eastern and Western a previous maximum single commitment electrical equipment, diesel engines, and Africa. These Missions help new African of $6 million. tubewell and pumping equipment. This member countries in identifying and pre- The increased volume of the Group's was the second such credit made to Pak- paring projects for financing, particularly operations in the private sector required a istan by IDA. in the fields of agriculture and transporta- correspondingly greater measure of staff Two World Bank loans totaling $60 mil- tion. The Agricultural Development Serv- support from IFC. IFC is the principal arm lion went to assist individual industrial en- ice (ADS), which is attached to the Eastern of the World Bank Group in dealings with terprises. A loan of $30 million went to the Mission, has also been active. The ADS the private sector: irrespective of which Indian Iron and Steel Company Limited to staff has been increased from 6 to 15 and institutions of the Group provide the actual help finance a project designed to in- several have already been assigned to financing, IFC is responsible for the tech- crease the company's output of salable member countries in Eastern Africa, on a nical and financial appraisal and super- steel by about a third by 1970. This loan reimbursable basis, to assist in the organ- vision of all projects relating to manufac- brought total assistance from the World ization and management of agricultural turing industry, mining and development Bank to the Indian steel industry in the pri- development projects. finance companies. vate sector to $206 million. In the Congo The difficulty of recruiting qualified peo- Much of the Bank Group's financing of (Brazzaville), the Bank provided $30 mil- ple to organize and manage agricultural private enterprise continued to be directed lion in association with the European In- projects is a matter of continuing concern. toward industrial production. A large pro- vestment Bank, which provided $9 million, The problem is a general one, but particu- portion of the year's industrial financing for a project designed to produce 500,000 larly acute in the case of livestock projects was accounted for by three IDA credits to- tons of potash annually. The loans were and applies to other parts of the underde- taling $240 million to assist selected in- made to the Compagnie des Potasses du veloped world as well as Africa. Where it dustries in India and Pakistan, principally Congo, a Congolese company established is impracticable to make other arrange- manufacturers of capital goods, to import in 1964 by the Congolese Government and ments, the Bank is now prepared to hire a components and raw materials essential a French syndicate largely owned by 12 Fr9nchGovernmentagencies.Thiswasthe greatest impact if devoted to selected any sort of technical training because of Bank's first loan to a government-owned projects for general secondary education, the lack of facilities. A similar situation ex- manufacturing agency. The Bank is willing vocational and technical training at all ists in other countries to which the Group to consider financing ventures of this kind levels, and teacher training. extended finance for education projects provided it is satisfied that they have expe- Between them, the Bank and IDA have last year. By helping to ease this bottle- rienced and efficient management. provided $137.9 million in loans and cred- neck, the Group will contribute to an in- The Bank and IDA together extended its for 17 education projects. The rate of crease in skilled manpower for industry $75 million in 1966/67-$60 million from the the Group's commitment of funds to edu- and agriculture and to a reduction in these Bank and $15 million from IDA-to devel- cation is growing. The $51.8 million of countries' dependence on expatriates. In opment finance companies in Iran, the loans and credits in the past fiscal year addition to the projects alreadymentioned, Philippines and Turkey. All three had pre- represents 38% of total commitments to Bank loans or IDA credits were approved viously received assistance from the Bank education to date; and six projects are during the past year for high-priority edu- Group. To June 30, 1967, the Bank Group currently in various stages of appraisal. cation projects in Jamaica, Thailand and had provided a total of $565 million for 25 But the effectiveness of the Bank's pro- Tunisia. The credit to Tunisia was the sec- development finance companies in 21 gram cannot be measured in financial ond foran education project in thatcountry. countries-Austria, China, Colombia, Ethi- terms or project numbers alone, for there From the first five years of the Bank opia, Finland, Greece, India, Iran, Israel, is built into every project a considerable Group's operations in the field of educa- Ivory Coast, Liberia, Malaysia, Morocco, measureoftechnicalassistanceintheform tion, a pattern emerges indicating the di- Nigeria, Pakistan, the Philippines, Spain, of expert advice and recommendations. rections in which Bank and IDA funds have Thailand, Tunisia, Turkey and Venezuela. In keeping with its guidelines, the Bank been concentrated. Of the total proceeds These development finance companies in Group's financing of education during the of loans and credits for education proj- turn had undertaken investment commit- past fiscal year has been concentrated on ects, about two-thirds have assisted educa- ments of over $1,700 million, chiefly in creating and expanding facilities to pro- tion at the secondary level. Commitments industries such as textiles, food products, duce skilled and trained manpower. In at the university level account for just over chemicals and fertilizers, iron and steel, Kenya, for instance, IDA is supporting with 15% and the rest is divided more or less machinery and equipment, and pulp and a credit of $7 million a large school expan- equally between other post-secondary paper. They have also provided their cli- sion program which, when completed in education and vocational training. By cur- ents with technical and managerial assist- 1969, will substantially increase the num- ricula, about 40% of the funds have been ance and, by underwriting new issues of ber of places in general secondary directed toward general education, 30% industrial securities, have assisted in the schools, technical schools and primary to technical education and 20% to agricul- development of capital markets. teacher-training colleges. In neighboring tural studies, most of the remaining 10% Uganda, an IDA credit of $10 million will going to teacher training. A substantial Financing Education help provide new schools and additional part of the funds for general education has The rapidly growing demand for skilled facilities to make 14,000 new places avail- gone into science laboratories and work- manpower in the developing countries is able at the secondary level. An IDA credit shops for existing schools, making pos- imposing a considerable strain upon the of $6.3 million to Malawi is assisting in fi- sible a more modern and practical generally inadequate educational facilities. nancing the construction of a new primary curriculum at this level. Of the outlay of Five years have now passed since the teacher-training college and additions to the total proceeds, 69% has been used to World Bank concluded that there was a 12 secondary schools. A noteworthy tea- finance construction, while 28% has been worthwhile role for it to play in the field of ture of the secondary school expansion used for equipment. Only 3% has been financing the creation of facilities for will be the introduction of a technical used to finance personnel. educational purposes. Deciding how to curriculum. While this pattern is likely to continue, invest most productively in this field In all three countries, only a small pro- the volume of operations is expected to required careful appraisal of many alter- portion of the children completing their increase. In the past year, 50 missions natives. The Bank's conclusion was that primary education are able to go to sec- were sent to member countries in con- its educational financing would have the ondary schools at present or to receive nection with Bank Group financing of 13 education projects; Unesco organized or As already mentioned, the Bank helps as Executing Agency for 11 pre-invest- participated in 22, and FAO cooperated in member countries to identify and prepare ment studies financed by the UNDP, more a number of joint missions in the field of projects in the fields of agriculture and than in any previous year. The finance agricultural education. The Bank is taking education by drawing on the expertise of allocated by the UNDP for these studies steps to increase cooperation with other the FAO and Unesco through its Coopera- amounted to $7.4 million. Details of the agencies, especially with the development tive Agreements with these two organiza- studies, and of the new studies for which agencies of bilateral donors. tions. Assistance in meeting the urgent Bank finance has been allocated, are and special problems of African countries given on page 9. Technical Assistance is provided by the Bank's two Permanent Several studies were completed during A factor seriously limiting economic Missions on that continent and by theAgri- the year. They included Bank-financed growth in the less developed countries is cultural Development Service. Meetings studies of the Gezira Irrigation Scheme in the, lack of skills at various levels. The have been held with representatives of the the Sudan, a land development scheme in Bank's technical assistance activities are African Development Bank, the Economic Malaysia, and a river basin development directed toward helping within carefully Commission for Africa and the UNDP to scheme in Afghanistan. Other completed considered limits to fill this gap and thus consider ways of cooperating in planning Bank-financed studies were: a study of the enabling the developing countries to make pre-investmentstudiesforpower,transport steel industry and the first phase of a better use, in increased quantities, of their and telecommunications projects affect- transport survey in Brazil; road studies in own and outside capital for development. ing more than one African country. the Cameroon, Chile, Niger and Nigeria; For countries that require outside help, By organizing expert missions, the Bank transport surveys in eastern India and including financial assistance, to establish assists member governments to formulate Korea; and a port study in Somalia. priorities for investment in major eco- development programs as a framework for Four UNDP studies for which the Bank nomic sectors, or to prepare development investment and to adopt policies condu- was Executing Agency were completed-a projects, the Bank assists in various ways. cive to economic growth. The Economic port transportation survey and a mineral The Bank normally encourages govern- Development Institute (EDI), the Bank's survey in Surinam, a road study in Para- ments to look to the UN Development Pro- staff college, helps to train senior officials guay, and a power study in the south gramme (UNDP) for financing sector and ofthedevelopingcountriesindevelopment central region of Brazil. Work on a num- feasibility studies. The Bank, however, techniques. ber of other studies continued. - stands ready to help in the preparation of During the year, the Bank made grants The second part of a major study of the applications to the UNDP, and to act, on of $1,147,000 to meet the foreign exchange water and power resources of West Pak- request, as the Executing Agency for se- cost of seven new studies designed to istan was virtually completed during the lected UNDP pre-investment projects. This bring projects or programs to the point of year. The study, carried out by a Bank means that the Bank helps to organize the readiness for financing. This was a sharp team headed by Dr. Pieter Lieftinck, an study, negotiates the terms of reference decline from last year's figure of $4.9 mil- Executive Director of the Bank and IDA, with the government and the UNDP, em- lion, reflecting the implementation of the and assisted by a number of consultant ploys consultants, when required, to carry Bank's present policy of directing its mem- firms, was financed by the Indus Basin De- on the study, supervises the work in the ber governments in need of grants for velopment Fund. The purpose of the study field and evaluates the resulting report. technical assistance of this kind to the was to provide the Pakistan Government When the foreign exchange cost involved UNDP as the member of the UN family with a basis for planning the development is $200,000 or less, the Bank may itself fi- specifically concerned with financing pre- of the water and power sectors in West nance the study through a grant. When investment studies. An additional $50,000 Pakistan and to help determine which of larger amounts are involved, if UNDP fi- was allocated for the Eastern Region several potential projects are economically nancing is either not available or inappro- Transport Study in India. On a reimbursa- viable and capable of execution during the priate, and if the country is eligible for IDA ble basis, IDA extended two credits total- two Five Year Plan periods 1965-70 and assistance, the foreign exchange cost of a ing $1.49 million to Pakistan and Malawi 1970-75. study can be met by an IDA technical for project preparation. The Bank's advisory work in the field of assistance credit. The Bank agreed during the year to act development planning has been expanded. 14 A diversion tunnel at the Xavantes hydro- electric project under construction on the Paranapanema River in Brazil. The Bank has made 17 loans for the development of electric power in Brazil. The first loan was made in 1949, the last tive in December 1966. t -å. 82"' ~W .-- - .s - aý 15 Bank staff members visited Ethiopia, number of courses on development prob- interest in the field of economic develop- Ghana, Haiti, Iceland, Ivory Coast, Mauri- lems offered during the year to six. As a re- ment. Among activities in this category, tania, Morocco and the Sudan during the sult, the Institute now has at least one and one of the most important is the gathering, past year to provide advisory assistance usually two courses in progress through- analysis and presentation of basic eco- to governments in evolving suitable organ- out the year. During 1966/67, 147 officials nomic data, and in particular information izations for formulating and implementing from 68 countries participated in these on the external debt of member countries. development programs. In the case of courses, which included a six-month A new expanded system of debt report- Mauritania, a Bank team also assisted in course on general development and ing,establishedandoperatedjointlybythe the preparation of a development plan. courses of approximately three months Bank and the Organization for Economic Members of the Bank staff were sec- each on the evaluation of development Cooperation and Development (OECD), onded to advise on development planning projects offered in French, Spanish and came into force on January 1, 1967. The in Libya, the operations of a development English as well as courses in English on new system consolidates the activities of finance company in Nigeria, project prepa- agricultural projects and industrial proj- the Bank and OECD in collecting informa- ration and planning in Peru, economic pol- ects. By June 30, 1967, about 750 officials tion on debt and international capital flows icies in the Sudan, and the preparation of from 100 countries had participated in and should result in the availability of annual economic budgets in Tunisia. Sim- all courses given by the EDI since its more comprehensive, reliable and up-to- ilar advisory assignments were completed establishment. date data. During 1966/67, the Bank also in Chile and Tanzania. The Bank has con- In addition, the Institute extended as- set up a system to report on the flows of tinued to maintain resident representatives sistance to regional and national training capital and assistance from one develop- in India and Pakistan. The Bank's resident courses sponsored by other agencies. ing country to another. representative in Ethiopia ended his term Early in 1967 teaching staff and teaching Two studies begun earlier were com- of service at the end of June. materials were provided for a six weeks pleted during the year. One of these, a In August 1966, the Johns Hopkins Press course in project evaluation held in Nai- study of the nature, use and effects on published The Economic Development of robi, Kenya for participants from five coun- development of suppliers' credits, under- Morocco, the report of a general survey tries in East Africa; the course was taken at the request of UNCTAD, was sub- mission organized by the World Bank in organized by the U.N. African Institute for mitted to the Secretary-General of the 1964 at the request of the Moroccan Gov- Economic Development and Planning and United Nations in January. The study sug- ernment to advise on measures needed to the Staff College of the East African Com- gested various ways to help increase the maximize Morocco's economic growth. mon Services Organization. Similar as- usefulness of suppliers' credits as an in- Two special agricultural reports, dealing sistance was provided for an industrial strument of international finance, while with the development of agriculture in projects course, sponsored by the Indus- avoiding the debt crises and other prob- Spain and Greece, respectively, were pub- trial and Mining Development Bank of Iran lems resulting from excesses and abuses lished during the year. The reports, pre- in association with the University of Teh- in their use. pared at the request of the Governments, ran, held in Iran in June and July 1967 for A first draft of a multilateral investment made recommendations concerning pol- participants from Afghanistan, Iran, Pak- insurance scheme, prepared by the staff icy in the two countries. The Spanish agri- istan and Turkey. EDI staff have also con- of the Bank as a basis for discussion, was cultural report was drawn up by a joint ducted seminars at courses of several also completed during 1966/67. The Bank-FAO mission to Spain in late 1965, other training institutions, such as the U.N. scheme provides for insuring new foreign that on Greek agriculture by a mission or- Asian Institute for Economic Development private investment made in a developing ganized by the Bank with FAO's coopera- and Planning in Bangkok. country against risks of a non-commercial tion during the first half of 1966. nature. This study, also requested by The Bank's Economic Development In- Economic and Other Studies UNCTAD, is based on earlier work by stitute (EDI), established in 1955 as a staff In addition to increasing its studies of OECD. The draft was submitted to mem- college for senior government officials of individual member countries' economies ber governments and interested organiza- developing countries responsible for eco- and economic problems, the Bank has ex- tions for review and comment. As the next nomic and financial matters, increased the panded its work in areas of broad general step in the consideration of this matter, 16 the Executive Directors began discussion ested in economic development. The first pared with $292 million in 1965/66. The in- of the draft in May. two papers in this series, published in crease was mainly accounted for by a rise Another study produced in 1965/66 by October, were entitled The Economic to $247 million from $219 million in in- the Bank staff at UNCTAD's request, on Choice between Hydroelectric and Ther- terest on loans, a gain of $28 million, and Supplementary Financial Measures, was mal Power Developments and Quantifica- a rise of $9 million in income from tempo- discussed at two meetings of a special tion of Road User Savings. rary investments from $63 million to $72 inter-governmental working group set up million. Total expenses amounted to $161 to examine the scheme by the Committee The Bank's Finances million. Bond and note interest and issu- on Invisibles and Financing Related to Net income of the World Bank for the fiscal ance costs were $131 million, an increase Trade of the U.N. Trade and Development year was $170 million, compared with $144 of $13 million. This stemmed both from a Board. Under the scheme, supplementary million in the previous year. The sharp in- higher level of funded debt outstanding finance would be provided to support de- crease in earnings reflected in part the and the higher cost of funds borrowed velopment programs that would otherwise higher yields obtainable on the Bank's during the year. Administrative costs rose be disrupted by the failure of export earn- temporary investments during the period by $3 million to $24 million. Expenditure ings to come up to reasonable expecta- and an increase in loans held by the Bank. on services to member countries declined tions. Members of the Bank staff attended Commissions still charged on the out- by $2 million to $6 million. These services the meetings. standing portion of a few of the Bank's included sector and feasibility studies, Work has continued, in conjunction with earliest loans amounted to $0.7 million and special economic missions, resident and FAO and the International Coffee Organiza- were credited to the Special Reserve, rais- advisory missions, the Bank's cooperative tion, on the study to examine the need of ing it to $290.4 million at June 30, 1967. programs with FAO and Unesco, and train- the main coffee-producing countries to Gross income was $331 million, com- ing programs for officials from the less diversify into other lines of production and developed countries. The decline reflected to identify the possibilities for such diver- Bank and IDA: Commitments and Disbursements the Bank's policy, referred to earlier, of . . Four Year Averages/Fiscal Years sification. The Bank agreed to increase its In millions of US Doslars directing member governments in need of contribution toward the costs of the study grants for technical assistance for pre- by $90,000 to $290,000. 1200 investment studies to the UNDP as the In May 1967, the Johns Hopkins Press Bank Commitments member of the UN family specifically con- published Experiences with Agricultural IDA Commitments cerned with providing finance of this kind. Development in Tropical Africa. This study Th- Bank Disbursements Loans held by the Bank at June 30, of successes and failures of agricultural 1967, including those not yet effective, development programs in tropical Africa IDA Disbursements and net of exchange adjustments, totaled was carried out over a two-year period $7,122 million, an increase of $594 million. under the auspices of the World Bank by Disbursements on loans during the year a research team headed by Mr. John C. de reached $790 million, a new high level, Wilde, one of the Bank's senior econo- compared with $668 million in the previous mists. Ways of implementing some of the 600 period. The sum of $2,393 million remained study's recommendations have been dis- to be disbursed over a period of years, cussed in the Bank during the past few estimated to extend to 1973. months. 400 The Bank's borrowers repaid $346 mil- The Bank wishes to make its own knowl- lion on maturing loans in the year, com- edge and experience in the development pared with $328 million in 1965/66. field as widely available as possible. To 200 Repayments included $188 million paid to this end, the Bank has started the publica- the Bank and $158 million paid to investors tion of a series of occasional staff papers who had purchased borrowers' obliga- to make research undertaken within the 1 tions from the Bank. Aggregate repay- Bank available to others engaged or inter- 48-51 52-55 56-59 60-63 64-67 ments on the Bank's loans to June 30, 17 1967, were $2,560 million, $1,297 million institutions in 43 countries and one inter- $74.2 million, is scheduled to be delivered having been repaid to purchasers of loans national institution. The Bank placed pri- after the end of the fiscal year and is not and $1,263 million to the Bank. vately in Switzerland SwF 33.3 million included in outstanding debt at June 30, Sales of participations and portfolio (equivalent to US$7.7 million) of 5%% 1967. assets declined during 1966/67 to $69 mil- Two-Year Notes with a group of leading Refunding of maturing bonds and notes lion from $82 million in the previous year. Swiss banks. during the year amounted to the equiva- As in the three preceding fiscal years, the Delivery was made during the fiscal year lent of $164.0 million. The Bank re- chief contributing factors were the upward of $100.8 million of an offering of $175 mil- financed, at maturity, notes totaling $44 movement of interest rates on competing lion of 5/8% Twenty-five Year Bonds million and DM 80 million (equivalent to securities and the restriction on overseas made in the United States in June 1966. US$20 million) which matured on August investments from some capital-exporting The remainder of the issue, amounting to 1, 1966, and February 1, 1967, by the is- countries. suance of new notes totaling $32 million Outstanding funded debt of the Bank on World Bank: Funds Available for Lending and DM 128 million (equivalent to US$32 June 30, 1967, aggregated $3,075 million, As ofJune30, Yearsl947tol967 million) with maturities in 1968 and in in millions of US Dollars an increase of $269 million. During the 1969/70. Of these amounts, notes for $16 year the Bank offered or placed issues of 9,000 million and DM 64 million were issued on securities totaling $554.2 million. Of these, August 1, 1966, with an interest rate of issues equivalent to $390.2 million were for 8,000 5/%, and $16 million and DM 64 million new money and refunded issues amounted were issued on February 1, 1967, with an to the equivalent of $164 million. The new interest rate of 51/8%. money issues consisted of public offerings 7,000 .1 An issue of $100 million of 4¼% Two- in Canada, Switzerland and the United Year U.S. Dollar Bonds fell due on October States, a private placement in Switzerland 1, 1966, and was refunded through the and one international offering made pri- 6,000 placement, outside the United States, of marily to central banks. an equal amount of 6% Two-Year Bonds The offering in Canada comprised Can with central banks and government in- $20 million (equivalent to US$18.5 million) stitutions in 35 countries and one inter- of 6¼ % Twenty-five Year Bonds. This was national organization. A 4% loan of Sw F the Bank's sixth issue in Canada, and the 4,000 33,333,333 (equivalent to US$7.7 million), third issue in less than two years. In held by the Swiss Government, became Switzerland, SwF 60 million (equivalent due during the year and was repaid. A to US$14.0 million) of 5% Eighteen Year 3,000 total of $54.1 million of the Bank's bonds Bonds were offered. was retired through sinking fund and pur- In the United States, an issue of $250 chase fund operations. million of 5%% Twenty-five Year Bonds 2,000 The cost of funds obtained in the invest- was offered in March. Of this, $90.1 mil- ment markets moved upward during the lion *was sold for immediate delivery and 1,000 first half of the fiscal year, continuing a is included in outstanding debt, and $159.9 trend that began in the preceding year. million was sold for delayed deliveries on As a result, interest costs on Bank obliga- various dates after the end of the fiscal 47 '49 '51 '53 '55 '57 '59 '61 '63 65 '67 tions offered or placed in the first six year and is therefore not included in out- Incomefrom Operations months of 1966/67 reached peak levels. standing debt at June 30, 1967. The 6%% Twenty-five Year Bonds offered A new issue of $100 million of 5%% Usaleuscritipal in Canada in November 1966 were priced Two-Year U.S. Dollar Bonds of the Bank at 98 to give a yield of 6.41%, the highest was privately placed outside the United Sales of Loans offering yield on any World Bank issue. In States with central banks and government Borrowings the second half of the year, issues of 18 Bank bonds were sold at costs which were September 1966, $75 million of the Bank's plenishment of IDA resources, have been lower but were still high compared with net income for the fiscal year 1965/66 was made on a fully convertible basis. At June interest costs in previous years. The aver- set aside for transfer to IDA in the form of 30, 1967, the resources which the Part I age cost on all Bank issues offered during a grant, after $68.7 million from net income countries had undertaken to provide the fiscal year was 5.54%, compared with had been allocated to the Supplemental amounted to $1,524 million as follows: 5.08% in 1965/66. Reserve. After the close of the 1966/67 The Bank continued to make new loans fiscal year, the Executive Directors allo- o f in the less developed countries at the 6% cated $160 million of net income of the Australa............ 39.98 2,62 rate adopted in February 1966, though the fiscal year, amounting to $170 million, to Austria ......... ... 10.08 0.66 question of interest rate in this period of the Supplemental Reserve, raising that Belgium............. 16.50 1.08 rising cost of new borrowings was under Reserve to $892 million and total Reserves Canada. ........... 79.53 5.22 Denmark Denm4 16.24 1.07 continuous close review. The lending rates to $1,183 million. The Executive Directors Finiand ... .. 6.3 0.40 to borrowers better able to raise external at the same time recommended to the France........... 114.83 7.53 capitalfrommarketsources-theso-called Board of Governors that $10 million be Germany. .......... 12556 8.24 "market eligible" countries-also remained transferred to IDA by way of a grant. Italy .......... .... 48.16 3.16 unchanged, the highest rate for this cate- Japan .......... 74.84 4.91 gory of borrowers continuing at 7%. IDA's Finances Kuwa ...... 6 0.44 Under a decision approved by the Board The bulk of usable resources available to Netherlands.......... 44.24 2.90 of Governors at the Annual Meeting in the International Development Association Norway ......... 13.32 0.88 has been contributed by 18 governments South Africa ......... 14.08 0.93 , Swede 5 3. 23..... 32 3.49 Increase in Outstanding Funded Debt: 1966/67 referred to as Part I members. Their e Kingom . 2 1 $ millions $ millions original subscriptions to IDA, 4nd their United States ....... 632,29 41.48 (equiva- (equiva- subsequent contributions to the first re- TOTAL ...... . .. 152422 100,00 lent) lent) *Then figure tor Sn,ecen includes sixspec a] cont,ibutirs totNng NEW BORROWINGS IDA: Funds Commited and Funds Available $28.14 mi lis, whio are su p!enectcry to Seer's ori ing As of June 30, Years 1961 to 1967 sIbscrip`ion and contribution to the first replerishmert of IDA US la s larss.. 3 * In milions of U.S. Dollars ($25.09 millon). .Swiss francs ........ . 21.7 390.2 FundsAvailable Of the original subscriptions of the re- REFUNDINGS Funds Committed maining 79 members of IDA, referred to as Udollarsmar 13 14. Part II countries, only 10%, amounting to 32.0 14 BOND$25 million, has been paid in convertible IN PREVIOUS YEARS funds; the remainder is in national cur- US dollars .s...... . 0. 100.8 rencies, and can be used only with the 655.0 consent of the country concerned. From LESS: this 90% portion, a total of $18 million had Issues refunded been released by the end of the fiscal year (see above)e).1 6 4. 0ygPt... 164.0 Issue matured and repaid by eight Part countries (Iceland, Ireland, (Swiss francs)..... 7.7 Israel, Jordan, Mexico, Panama, Spain and Purchase and sinking Yugoslavia). fund redemptions In allocating the World Bank's net in- (various currencies). 1 come in 1963/64, the Board of Governors, Bonds sold in 1966/67 on delayed delivery basis after making a transfer to the Bank's Sup- (US dollars) ............ 159.9 385.7 plemental Reserve, approved the transfer NET INCREASE IN of the remainder, amounting to $50 million, OUTSTANDING FUNDED DEBT. 3 as a grant to IDA. Similar transfers to IDA *This noes not include an lsue en te United tates s Twenty- Of $75 million each were approved by the five Year 5y% Bonds ottered in Juse 1966 for delivery after June of G7ilovnor fhwrom thre b' nhe 30, 1966, as noted in the last year's Annual Report. Board of Governors from the Bank's net '61 '62 '63 64 '65 '66 '67 19 earnings in the fiscal years 1965 and 1966, by 32 of them. Signatories at August 1, proved arrangements for the use of the making a total for the three years of $200 in the order of signing, are shown below: World Bank's administrative facilities and million. Including $14 million of IDA's own services. The Council agreed to invite net income, the cumulative total of usable Tunisia* Ghana* Switzerland, which is not a member of the resources made available to IDA is thus United Kingdom* Belgium Bank, to become a party to the Convention. $1,781 million as at June 30, 1967. Jamaica* France The Convention was sponsored by the Ivory Coast* Congo (Brazzaville)* The Association made $353.5 million Pakistan* China Bank in the belief that the creation of an of development credits during the fiscal Nigeria* Togo institution especially designed to facilitate year and the cumulative total of IDA com- Mauritania* Germany the settlement of investment disputes be- mitments at June 30, 1967, was $1,694.2 Niger* Cyprus* tween States and foreign investors could Central African Greece million, leaving a net of $86.8 million of Republic* Korea* be a significant step toward promoting an uncommitted resources: this entire re- United States* Chad* atmosphere of mutual confidence, and that mainder had been earmarked for projects Liberia Austria adherence to the Convention would stimu- already in the final stages of consideration. Dahomey* Kenya* late a larger flow of private international Upper Volta* Netherlands* Disbursements by IDA in the fiscal year Ethiopia Malagasy Republic* capital to those countries which wish to amounted to $342.1 million, which brought Gabon* Uganda* attract it. total disbursements at June 30, 1967, to Cameroon* Malawi* Fuller details of the Centre's affairs are $1,023.7 million. The undisbursed balance Japan Norway contained in its Annual Report. The first of the Association's credits amounted to Sweden* Iceland* Annual Meeting of the Centre will be held Somalia Ireland $670.5 million on the same date. Sierra Leone* Senegal* in Rio de Janeiro, at the same time as the Proposals concerning a second replen- Nepal Afghanistan Annual Meetings of the Bank, IDA and IFC, ishment of IDA's resources were sub- Luxembourg Trinidad and Tobago* during the week beginning September mitted by the President of the Association Denmark Burundi 25, 1967. Morocco* Sudan to Part I countries in July 1966 and dis- Malaysia* Yugoslavia* cussions are continuing. Italy Finland Membership and Administration *Instrument of ratifico has Leen deposited During the fiscal year the Bank's member- Settlement of Investment Disputes ship increased from 103 to 106 govern- The Convention on the Settlement of In- At the inaugural meeting of the Admin- ments. Singapore joined in August and vestment Disputes between States and istrative Council of the Centre on February Guyana in September. Indonesia was re- Nationals of Other States came into force 2, 1967, Mr. Aron Broches, General Coun- admitted to membership in April. Guyana on October 14, 1966, 30 days after the sel of the Bank, was appointed Secretary- also joined IDA, increasing its membership deposit of the twentieth instrument of rati- General of the Centre for the period end- to 97. At the end of the year, action was fication. Under the Convention, which was ing September 30, 1968. Mr. Broches will pending on applications for membership prepared by the Executive Directors and continue to be General Counsel of the in the Bank from The Gambia, Lesotho staff of the Bank with the assistance of Bank while serving in his new position. The and Malta, and for membership in IDA from many legal experts over a period of sev- Administrative Council consists of one The Gambia, Guinea, Indonesia, Lesotho, eral years, an International Centre for representative of each contracting State. Malta, Trinidad and Tobago, Uruguay and Settlement of Investment Disputes has The President of the Bank is ex officio Venezuela. been established providing facilities for Chairman of the Council. The Bank's subscribed capital in- the settlement, by voluntary recourse to In addition to electing a Secretary-Gen- creased during the fiscal year from $22,426 conciliation or arbitration, of investment eral, the Council adopted the provisional million to $22,850 million. Singapore's disputes between contracting States and administrative and financial regulations of subscription to the Bank is $32 million, foreign investors who are nationals of the Centre, provisional rules of procedure Guyana's $16 million, and Indonesia's other contracting States. for the initiation and conduct of concilia- $220 million. Guyana's subscription to IDA By August 1, 1967, the Convention had tion and arbitration proceedings, and an is $810,000. In addition, eight governments been signed by 53 countries and ratified initial budget for the Centre. It also ap- increased their subscriptions to the Bank's 20 Adjusting a bogie on a newly assembled tank wagon in the Chief Mechanical Workshops at Nairobi, Kenya. An expansion and modernization program being carried out by the East African Railways and Harbours Administration is receiving Bank finance. capital by a total of $155.4 million, as achieving its objectives. The Department shown in the following table: will evaluate operational procedures, ex- L millions of US dollars isting programs and proposals for new W Membe Fprograms and make recommendations with respect to them to the President. The Canada.. .................. 750.0 792.0 Director of the Department is Mr. J. H. Greece.5 . .0. 5 667 Williams, who had been Deputy Director Liberia. ................. 15.0 21.3 of the Bank's Africa Department. Morocco ............. .... 70.0 96.0 Mr. Hugh B. Ripman has become Direc- Nicaragua.................. 6.0 8.0 tor of Administration in succession to Mr. Syrian Arab Republic....... 33.3 40'0 Venezuela.................. 140.0 186.7 Lejeune. He was formerly Deputy Direc- tor of the Projects Department. At the end of June 1967, the staff of the Mr. K. S. Krishnaswamy, Economic Ad- World Bank and IDA numbered 1,447 com- viser to the Indian Planning Commission prising nationals of 73 countries. since 1964, became Director of the Bank's In September 1966, Mr. Mohamed Economic Development Institute on May 1, Shoaib, former Finance Minister of Pakis- 1967, at the expiration of the five-year tan, who had served as an Executive Di- term of Mr. John H. Adler, who has be- rector of the Bank from 1952 to 1963, was come a Senior Adviser in the Bank's Eco- appointed a Vice President of the Bank nomics Department. and IDA; Mr. Shoaib has also been desig- The first four groups to be appointed natedamemberof the President's Council. under the Program for Selecting Young Mr. Simon Aldewereld, who since his Professionals have completed their train- appointment as Vice President in 1965 ing, and are now assigned to regular posi- had continued to serve as Director of the tions on the staff of the Bank and the Projects Department, relinquished his International Finance Corporation. Three position as Director in April 1967 in order additional groups numbering 39 are in to give his full time to vice-presidential training and the eighth group of 14 will duties. Mr. Bernard Chadenet, previously enter the Bank in October 1967, bringing Associate Director of the Projects Depart- the total in the Bank to 97 recruits from 36 ment, became Director of the Projects countries, as shown in the following table: Department. Argentina.........3 Netherlands .......... 2 Two new departments were created dur- Austria ......... . 3 New Zealand ..... .. . 1 ing the year. To give closer attention to Belgium .........4 Nicaragua . . . 1 the countries in the area from Morocco to Canada. . .2 Nigeria .. .1 China 1 Norway 2 Iran, the creation of the Middle East and Cuba.1 Pakstan .. . 4 North Africa Department was announced France .. ... 8 Philippines . 2 in April, to come into effect from June 1, Germany ..8 South Africa . 1 1967. It is headed by Mr. Michael L hane 1 Span . . 2 Lejeune, w ho had been Director of Ad- Ge.1 Sweren..2 A - Guyana.. ......1 Switzerln nd.... ..3 m inistration since 1964. India .... . 8 Thailand.... ......... 1 The Department of Program Evaluation Iran..... ..1 Togo.............. ... and Control was established in February. Irael.... Turs. .... Its principal responsibility is to make a aical .y. Kinntd A Rp.ublic.. 1 continuing review of the effectiveness and Japan...........2 United States.......... 7 efficiency of the World Bank Group in Mexico...........1 Yugoslavia............ 1 21 PartTwo: Trends and Outlook in Development Finance Page O ver-all T rends.......................................... 24 Growth in Developing Countries......nr....... 25 Trade and Payments of Developing Countries............. 26 External Debt of Developing Countries.................... 30 Debt Accum ulation and Servicing........................ 30 Average Term s of Debt......... ........................ 33 Capital Flows to Developing Countries .................... 33 International Capital M arkets............................. 35 Part II of the Report is based on data available as of the end of June 1967. 22 List of Tables and Charts Tables Page 1. Real Gross Domestic Product in Developing Countries- Regional S um m ary................................... 26 2. Economic Indicators for 40 Selected Developing Countries-Regional Summary........................ 27 3. Trade Balance and Changes in Reserves of D eveloping Countries................................. 27 4. Estimated Current Account Balance and Net Capital Account of Developing Countries in 1965- Regional S um m ary................................... 29 5. External Public Debt Outstanding and Debt Service Payments of Developing Countries....... ............. 30 6. External Debt Outstanding and Debt Service Payments of the Larger Debtors.b.o..................... ........ 31 7. Service Payments on External Official Debt as Percentage of Exports of Goods and Services for 48 Countries ..... 32 8. Weighted Average Terms of External Public Debt of 46 Developing Countries, by Sources.................. 34 9. Weighted Average Terms of External Public Debt Incurred in 1965 by 40 Developing Countries............ 35 10. Flow of Net Financial Resources from IDA Part I Countries to Developing Countries and Multilateral Institutions. .... 36 11. New Bond Issues Placed Internationally by Market and Country of Borrowing Entity........................... 37 Charts 1. Primary Commodity Price Index for Low and Medium Income Primary Producers................ 28 n1. Yields on Long-Term Government Bonds in Selected Capital M arkets.............................. 38 23 Over-all Trends In recent years, output has continued to the 1960s resulted in a relatively high level tion. Some countries whose meager re- grow in the developing countries' despite of demand for exports of developing sources are being excessively strained by important setbacks in some. A number of countries, especially of petroleum; most rapid population growth are beginning to countries have done well, attaining growth countries which depend on agricultural take positive steps to reduce their birth rates considerably beyond expectations. raw materials increased their export earn- rates. Some developing countries which Most rapid growth has been in industrial ings at a much lower rate. The decelera- had run into serious economic trouble, production, starting from a low base, while tion of growth of the world economy since e.g., Indonesia and Ghana, have made output in agriculture has lagged. On a per the middle of 1966 has adversely affected fundamental changes in their general eco- capita basis, growth in Gross Domestic demand for most primary commodities. At nomic and development policies. Product has been slower, while agricul- the time of this Report, July 1967, the com- A major factor affecting the flow of tural output in many countries has actually bination of uncertainties in international capital to the developing countries has declined. relations and in the economic outlook of been the persistence of balance of pay- Through the first half of calendar 1966, the industrial countries, makes it difficult ments problems in the United States and the industrial countries experienced rela- to project the likely course of export de- the United Kingdom. Budgetary problems tively rapid growth rates, even exceeding mand. Unless the pace of activity in indus- in a number of industrial countries have the rate needed to achieve the growth trial countries increases, the prospect for been further obstacles to the provision target set by the Ministerial Council of the the remainder of the 1960s seems to be of satisfactory levels of development as- Organisation for Economic Cooperation slower growth in the export earnings of de- sistance. Thus, there has been continued and Development (OECD) in a 1961 resolu- veloping countries than the rate achieved stagnation in the over-all volume of aid, tion. The statement listed as one advan- in the first half of the decade. coupled with the tying of bilateral assist- tage of rapid growth that "it will enable While external resources available to ance to procurement in the donor coun- industrialized member countries to con- the developing countries have remained tries. Average terms of development loans tribute more effectively to the development inadequate, their ability to absorb capital have tended to harden in recent years; in of less-advanced countries." Beginning in efficiently has improved. The record is by 1966, however, they became somewhat mid-1966 and extending into calendar no means uniformly good. Some countries more concessionary than in 1965. A con- 1967, however, economic expansion in the have failed to take the measures neces- tinuing growth in the gross capital flow is industrial countries has slowed down. The sary to put their development on a sound required just to maintain the net flow (net short-term outlook in this respect is basis. Many of them, however, have come of amortization) at the present figure of uncertain. to appreciate the need for bettereconomic around $6.5 billion. Otherwise the trend of The rapid increase in production of the performance if development is to proceed rising amortization payments will reduct industrial countries through the middle of successfully. Many have made improve- the amount of foreign exchange avail- ments in various aspects of economic able to the developing countries for im- tries is based on that used in the United Nations Statistical policy affecting domestic resource mobi- port financing. Yearbook. The data do not include Albania, Bulgaria, lization, private investment and production The volume of private capital flows to Czechoslovakia, Eastern Germany, Hungary, Poland, Ro- mania, Mainland China, Mongolia, North Korea, North activity, the programming of government developing countries has been subject to Viet-Nam, the Union of Soviet Socialist Republics and investment, exchange rates and trade. strong fluctuations, and it declined con- Cuba. The term "developing countries" includes all other countries of Asia except Japan; of Africa except South They have also taken steps to improve siderably from 1965 to 1966. Excluding Africa; of Latin America and the Caribbean Area; and the economic administration and the identifi- exporters of petroleum and some metals, So0uthern European countries of Cyprus, Greece , MalIta,ecinsrtoanthidni-exresofprlum ndoemtl, Portugal, Spain, Turkey and Yugoslavia. cation, planning and execution of invest- the inflow of private capital has been on The "developing countries" group covers about 1,640 million people or more than 70% of the world's population ment projects. The need for emphasis a relatively small scale. The total inflow of outside of the excluded countries listed above. The on expansion of agricultural output has private capital to all developing countries countries other than the excluded group and the "devel- oping countries" are referred to as "developed" or "in- gained wider recognition, and more coun- has been around $2 billion a year net of dustrial" countries. It is to be noted that this classifica- tries have taken measures to allocate amortization and recorded capital out- tion does not coincide exactly with the Part I and Part II division of membership in the International Development greater resources to this purpose and to flows. If the disturbances of the recent past Association and has no relevance as to the countries frame and implement policies designed to continue, there is little likelihood of a finance from the Bank or IDA. stimulate and facilitate expanded produc- marked improvement in the near future. 24 Simultaneously, there has been a sub- attention is being given to the implications 4.3%, falling somewhat short of the 5% stantial increase in the debt-service of regional groupings, both in the indus- growth target adopted in the Development burden of developing countries, to the trial and developing areas. It is too early to Decade resolution of the General Assem- point where a number of countries are assess the full implications forthe develop- bly of the United Nations for the late 1960s devoting 20% of their exchange earnings ing countries of the so-called "Kennedy and less than 2 percentage points above from exports to the servicing of interest Round" agreements which were negotiated their current rate of population growth. and amortization payments on external among the GATT (General Agreement on Aggregate figures for all developing debt. Certain countries have experienced Tariffs and Trade) members reducing tariff countries, of course, conceal wide varia- crises, requiring rescheduling or refinanc- barriers, though it is clear that they should tions. Among the major developing re- ing of their debt. Some of the debt crises help to foster world prosperity by encour- gions, the fastest growth, more than 7% represent short-term problems arising out aging a more economic international divi- per year, has been in Southern Europe of excessive borrowing on short term and sion of labor in the production and trade and the Middle East. East Asia achieved the peaking of debt-service obligations in of the industrial countries. Improvements average growth of 5% in the first half of a short period. Others, however, constitute in world markets for exports from develop- the 1960s, about the same rate as in the more difficult and stubborn long-term ing countries will be a critical factor for previous decade, but the regional average problems arising out of the fact that the economic development. was reduced by sluggish growth in Indo- terms of past and present aid, together In recent years there has been growing nesia. Latin America sustained over-all with the continuing aid flow required, if awareness that the successful application growth of 4.7% per year in the 1960s. The extended on the present average terms, of development finance can take place regional average was reduced by slower will create debt-service obligations which only in an environment with a sufficient growth in the two largest countries in are almost certain to be unmanageable for degree of political stability, and with ex- terms of GDP, Argentina (3.4%) and Brazil a considerable period in the future. panding foreign trade and proper domestic (4.4%). By mid-1966, interest rates in major economic policies. Thus, more rapid de- The slowest growing regions in the financial markets had reached their high- velopment depends only in part on ade- 1960s have been Africa and South Asia, est levels since the 1920s despite con- quate and dependable assistance on where GDP has increased at average an- tinued high levels of savings in the appropriate terms. It also calls for the nual rates of 3.6% and 3.2%, respectively, industrial countries. This rise in interest modification of trade policies in order to somewhat less than in the previous dec- rate was mainly the result of continued improve world markets for exports from ade. The slowdown in Africa resulted rapid growth in the major industrial coun- developing countries. And it requires a largely from special circumstances in Al- tries, combined with a preference for use more determined and better sustained ef- geria, where GDP actually declined from of monetary rather than fiscal policies to fort by the developing countriesto improve 1960 to 1965, and in the Democratic Re- check inflationary pressures. As economic the management of economic affairs and public of Congo. The slow growth of India, activity slackened in the second half of to give development the highest priority. averaging less than 3% per year, chiefly 1966, monetary policy became less re- determined the sluggishness of South strictive. Interest rates declined by the end Growth in Developing Countries Asia's expansion in the first half of the of the year in most capital markets, but by The developing countries as a group seem 1960s. mid-1967 they had risen again to well to have increased their Gross Domestic In per capita terms, growth of develop- above the level prevailing since the twen- Product close to 5% in 1966, according to ing countries was much slower. Their rate ties. The higher interest rates considerably preliminary and rough estimates. Between of population growth accelerated to 2.4% increased the cost of capital for interna- 1960 and 1965, the combined annual per year from 1960 to 1966, compared with tional development institutions and for the growth rate of developing countries has 2.1% in the 1950s. Correspondingly, their few developing countries which borrowed been about 4.8%, slightly higher than the average per capita economic growth in in external capital markets. average of the 1950s (Table 1). The de- the 1960s was reduced to 2.3%; if South- Current discussions in the field of trade veloping countries, other than those of ern Europe is excluded, the figure be- are of prime importance for the future Southern Europe, increased their GDP comes only 1.7%. Thus, per capita growth growth of the developing countries. More from 1960 to 1965 at an average rate of rate has been much slower in developing 25 countries compared to the industrial ones, than developing countries as a whole; cer- expansion has been a major cause of the considerably widening differences in aver- tain larger countries for which consistent slowdown in per capita growth of GDP. age per capita incomes between these data are not available are known to have There seems to have been a close re- two groups. a less satisfactory growth record than lationship between growth rates and the Salient features of development per- the average. expansion of external trade in the various formance from 1960 to 1965 for 40 de- In all regions, manufacturing output in- regions. Areas which achieved more rapid veloping countries by main regions are creased considerably faster than GDP. By growth-Southern Europe, the Middle East shown in Table 2. The data are obtained contrast, aggregate agricultural output in and East Asia-have also had fairly high chiefly from country surveys by World the 40 countries lagged behind population rates of increase in exports and imports. Bank staff. While these 40 countries ac- increase. In South Asia, per capita agricul- On the other hand, South Asia and those count for close to 70% of the total GDP of tural output has declined, mainly reflecting African countries for which comprehen- developing countries, they are not neces- slow agricultural growth in India. Since sive data are available have been lagging sarily representative. They probably show agriculture is still the dominant sector in growth of both GDP and external trade. a somewhat better average performance in most developing countries, its sluggish Table 2 also shows that more than 80% of gross investment of developing coun- Real Gross Domestic Product in Developing Countries-Regional Summary Table 1 tries has been financed by national Ave,age Annual Rates of Growth(Y.) savings. External capital inflow, notwith- 1950-60 1950-55 1955-60 1960-65 standing its vital role, has financed less Africa than 20% of gross investment. The GDP... . ........................... ............ 4.0 3.9 4.2 3,6 share of net capital inflow in financing Population............................................. 2.1 2.1 2.2 2.2 investm ents has been highest in Africa, GDP per capita.................................... .... 1.9 1.8 2.0 1.4 Southern Europe and the M iddle East, ac- South Asia3 . counting for about 30%. In South and East G D P . . . . . . .. . . . . . . . . . . . . . . . . . . 3.6 3.3 4.0 3.2 Pop ulation 1.9 1.7 2.1 2.4 Asia net capital inflow financed less than GDP per capita...... ...................... .......... 1.7 1.6 1.9 0.8 20% of investments, while in Latin Amer- East Asia(2) ica its share has not exceeded 12%. G D P ......................................... ...... .. 5 .2 6 .4 4 .1 5.0 Population .. ................. ................... ... 2.5 2.5 2.6 2.6 Trade and Paym ents of GDP per capita...................... .................. 2.6 3.8 1.5 2.3 Developing Countries Southern 5.1 5.7 4.6 7.2 Total merchandise exports of developiig Populat on 1.4 1.4 1.4 1.4 countries rose at an annual rate of about GDP per capita....... ................................ 3.6 4.2 3.2 5.7 6.5% between 1960 and 1965 (Table 3). Latin America Exports to the Western industrial coun- GDP ................................................... 4.9 5.1 4.8 4.7 tries and Japan, w hich account for three- Population ........... .................................. 2.8 2.8 2.8 2.9 quarters of the total, increased approxi- GDP per capita......................................... 2.0 2.2 1.9 1.7 mately 6% in 1966, or about the same Middle EastO) GDP ....................................... .. ........ 5.6 5.8 5.3 7.2 as in the previous five years. Exports to Population .............................................. 2.8 2.7 2.8 3.2 Soviet countries rose by about 16% per GDP per capita ... .................................. 2.7 3.0 2.4 3.9 year between 1960 and 1965, but they still All Developing Countries represent only 8% of the total. Despite GDP .... 4....4 .... ................................ 4.6 4.8 4.5 4.8 widespread emphasis on the expansion of GOPoper capita2 .4 intraregional trade among developing P pcountries, the expansion of such trade has (1) Burma, Cey[on, India, Pakistan. adSuhVe-a .n (2) Rapublic of China, Indonesia, Korea, Malaysia, Philippines, Thailand and South Viet-Narn. not exceeded the growth of total exports. (3) Excluding U.A.R., which is included in Africa. During that period, exports from develop- SOURCE: World Bank and U.N. ing to industrial countries increased at a 26 Economic Indicators for 40 Selected Developing Countries-Regional Summaryl Table 2 Average Annual Rates of Growth (1) 1960-65(2) % of GNP Average 1960 to 1965 GDP Agri- Manu- Total Current Total per ciltural facturing Gross Gross Account Region Population GDP Capita Prod. Prod. Exports5t Imports(3) Investment Investment Savings Deficit Africa ................. . 2.5 4.2 1.7 2.3 5.3 4.9 6.1 10.5 14.2 9.7 4.5 South Asia.............. 2.4 3.2 0.8 0.4 7.3 5.2 6.3 10.8 16.7 13.6 3.1 East Asia . ............... 3.1 6.4 3.2 3.9 10.3 10.7 7.9 10.9 16.4 13.6 2.8 South Europe and Middle East............. 2.6 7.0 4.3 3.6 9.1 10.2 10.5 8.4 18.7 13.6 5.1 Latin America........... 2 9 47 1.7 3.1 5.8 6.6 3.1 3,6 18.6 16.4 2.2 TOTAL......... 2.6 4.6 1.9 2.0 6.8 7.3 6.0 7.5 17.5 14.4 3.1 (1) The countries included under each region and their combined share in regional GDP, excluding the industrial countries, the Soviet Union, Eastern Europe (other than Yugoslavia), Cuba and Mainland China, are as follows: Africa-Ethiopia, Ghana, Kenya, Malawi, Morocco, Nigeria, Sudan, Tanzania, TL nisia, Uganda (38% oi regional GDP). South Asia-Burma, Ceylon, India, Pakistan (100%k of regional GDP). East Asia-Republic of China, Korea, Malaysia, Philippines. Thailand (55% of regional GDP), South Europe and Middle East-Cyprus, Greece, Iran. Iraq, Israel, Jordan, Turkey (40% of regional GDP). Latn Anerica-Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru (84% of regional GDP). TOTAL-Relates to the countries included in the areas above (68% of total GDP of developing countries). (2 The terminal years employed are 1960 and 1965. (3) Goods and Services at current prices. SOURCE: World Bank, rate 20% higher than the latter's GDP. On Trade Balance and Changes in Reserves of Developing Countries Table 3 the other hand, the growth of exports (billions of US Dollars) of developing countries was considerably 1950 196" 1962 1963 1964 1965 1966l) slower than the expansion of trade among --- ----- --- -- - -- - - -- industrial countries and of over-all world Developing Countries trade. Exports (f.ob.) ......... ....... 29.0 29.3 31.0 33.7 37.1 39.4 42.4 The relatively slow growth in the export Imports (c.I.f.) . ..9 -32.9 -34.4 -35.4 -37.3 -41.0 -44.1 -47.7 their Trade Balance.................. -3.9 -5.1 -4.4 -3.6 -3,9 -4.7 -5.3 t1ade of developing countries reflects Charge in Reserves ......... 0.4 -0.4 0.1 1.1 0.6 1.2 0.6 heavy dependence on primary products. Excludi In volume, their sales of these commodi- of Dev mg Countries ties increased by 5.5% per year during Exports (f.o.b.).................. 26.9 27.1 28.6 31.1 34.0 36.0 38.4 1960-65, as against an expansion of 9.5% Imports (c.i..)................... -29.7 -30.5 -31.0 -32.1 -35.2 -37.2 -39.6 per year in the export volume of manufac- Trade Balance .............. ... -2.8 -3.4 -2.4 -1.0 -1.2 -1.2 -1.2 tured goods. The average price level of Change in Reser ......... . -0.7 -0.3 1.0 0.2 1.3 0.7 primary commodities did not change be- Excluding Southern Europe and tween 1960 and 1966, in contrast to a ris- Major Petroleum Exportersl Exports (f.o.b.) ................. 21.2 20.2 22.2 24,3 26.2 27.6 29.1 ing trend in the average prices of manu- Imports (c.i.f.)................... -26.8 -27.7 -28.2 -29.4 -31.8 -33.3 n.a. factures. In a few primary commodities, Trade Balance.............. ... -5.6 -7.5 -6.0 -5.1 -5.6 -5.7 n.a. notably petroleum but also iron ore and Change In Reserves() ........... -0.1 -0.8 -0.3 0.4 - 1.0 0.5 tropical timber, the value of trade has in- (P)= Preliminary creased during the postwar period at rates n.a.=not available comparable to those for manufactured (1) Gold, Foreign Exchange, and Reserve Positions in the IMF; end of years figures; - sign means decrease but teir ontrbutin toaggr- 2) Greece, Portugal, Spain, Turkey, Yugoslavia products, but their contribution to aggre- Iraq, Kuait, Liyau Ara, Venezuela gate export earnings of developing coun- SOURCE: IMF, International Financial Statistics (July 1967). 27 tries has been offset by the slow growth lower than the level of 90 in 19652 (see Price declines also affected tin and cof- of trade in most other commodities. Chart 1). Average prices generally rose fee, for which international arrangements The 1966 rise in aggregate export earn- during the first four months of 1966 be- exist to stabilize prices through organized ings of developing countries is largely at- cause of continued increases in food and intervention. Difficulties encountered in tributable, as in other years of the 1960s, copper prices, but the index dropped operating the International Coffee Agree- to an increase in volume. Exports of petro- steadily in later months due to declines in ment have demonstrated that the long-run leum and petroleum products grew by the prices of agricultural raw materials, solution for countries exporting this im- some 11%, while all other primary prod- meat and sugar. Notable price increases portant commodity is intimately linked to ucts combined increased in volume by were experienced in 1966 for rice, copper, diversification of production. Nevertheless, only 4% to 5%. raw jute, jute textiles, wool and wheat. The international efforts to reduce wide fluctu- Export prices fluctuated widely in the prices of virtually all other primary com- ations in export prices might contribute 1960s, but in the main they remained modities fell. Sugar prices declined further markedly to orderly economic growth. below the levels attained in the mid-1950s. by as much as 12%. Almost two-thirds of Export growth of Latin America and In fact, since the world recession of 1958 sugar exports move under bilateral ar- Africa was faster in 1966 than that of South aggregate price levels of all goods ex- rangements, however, with prices con- Asia. The fairly good performance of Latin ported by the developing countries, in- siderably above the world quotation; this American exports is explained by buoy- cluding manufactured products, have mitigated the effect of the fall in world ancy in the grain, cocoa and copper mar- fluctuated at levels between 5% and 10% sugar prices on earnings of the exporting kets and by expansion in the volume of below the average of 1955-57. The World countries that benefit from such bilateral coffee and meat exports. The export Bank primary commodities price index for arrangements. growth of Africa was mainly due to copper low and medium-income countries in 1966 (2)From 1962, figures are adjusted to reflect producers' and robusta coffee. averaged 89.5 (1955-57 = 100), fractionally price quotations of copper. Over a longer period, the variations in export performance by regions chiefly re- Primary Commodity Price Index Chart I flect differences in composition of exports. for Low and Medium income Primary Producers The Middle East increased exports be- (1955-1957=100) AnnualAverages tween 1960 and 1965 at the relatively high 180 rate of 9.4%, mainly because of the strong performance of petroleum. Aggregate ex- ports of Africa also increased rapidly at 160 AGRICULTURE NON-FOOD 8.5% a year, due mainly to strong growth in exports of petroleum from Algeria and Libya and copper from Zambia. On the 140 other hand, South Asia and Latin America experienced a slower increase, because T TA_ ____ ,of the predominance of certain agricultural 120 TTAL NON-FERROUS METALSt- commodities in their exports. Developing countries in the aggregate, Foo ' - - excluding Southern Europe, increased 100 merchandise imports at an average rate of ' - - 4.7% per year between 1960 and 1965 - --- \- '- (Table 3). In the Middle East and East Asia so the rate of increase in imports was very Half close to the growth rate of GDP. In both South Asia and Africa, where GDP growth 60 '50 '52 '54 '56 '58 '60 '62 '64 '66 67 was relatively slow, imports rose faster *Including Petroleum. tFrom 1962 adjusted to reflect producers' price quotations of copper. than GDP. Only in Latin America did im- 28 Estimated Current Account Balance and Net Capital Account of Developing Countries in 1965-Regional Summary Table 4 (millions of US Dollars) Changes in Reserves and Private Current Official Private Errors Other Monetary Exports Imports Invisibles Transfers, Account Capital, Capital, and Assets Region (f.o.b.) (c.i.f.) Net Net Balance Net(4) Net(4) Omissions (- = increase) Latin America ... ........ 12,015 -11,293 -1,366 2 - 642 911 305 272 - 846 Africa...................... 7,670 - 8,141 -1,236 14 -1,693 1,583 430 - 273 - 47 Middle East................ 6,490 - 4,776 -2,135 215 - 206 328 365 - 239 - 248 South Asia................. 2,910 - 4,752 - 211 102 -1,951 2,012 49 - 205 95 East Asia2) ................. 6,630 - 8,429 787 92 - 920 868 206 193 - 347 Southern Europe....... .... 3,636 - 7,104 1,987 710 - 771 206 583 - 21 3 TOTAL................ 39,3513) -44,49513) -2,174 1,135 -6,183 5,908 1,938 - 273 -1,390 No sign means credit item,-sign means debit item, capital flows, official and private, are on a net basis, Second, DAC figures include technical assistance of $1.0 (1) Excluding Cuba. after deducting amortization as well as other capital out- billion in 1965, which is not fully reported by some of the flows from developing countries. The estimates of invisi- developing countries. Thirdly, $0.2 billion of unallocated (2) Including Oceanic Territories bles are shown on a net basis, mostly from balance of aid is included in the DAC figures, but not in the balance (3) Including intraregional trade. payments of developing countries and partly as a dif- of payments statistics of the recipients. Finally, there are (4) Net of capital repayments and outflows of capital from ference between the known capital items and the balance differences in classification: capital classified as official developing countries, of trade. from the donor's point of view may be classified as an SOURCE:IMF,BalanceofPayments Yearbook;U.N.,Month- The figures in Table 4 show a net inflow of official capital inflow of private capital from the recipient's point of view ly Bulletin of Statistics; and special communications. of $5.9 billion. DAC reports show net official bilateral and vice versa. flows of $5.8 billion, to which $0.9 billion provided by The discrepancy is larger with respect to private capital, Note: Data in Table 4 are based on balance of payments multilateral institutions and $0.3 billion received from which is reported at about $4.1 billion by DAC, as against statistics for the 62 countries for which such data are non-DAC countries should be added. The two sets of $1.9 billion in Table 4. The major difference is due to the available. For the other developing countries estimates figures are not strictly comparable for several reasons. fact that the figures in Table 4 are net not only of were made on the basis of capital flow data of the capi- First, official transfers are shown on a net basis in the amortization, which is in accordance with the DAC defini- tal-exporting countries, mostly from the sources of the table, after deductions for transfers originating in devel- tion, but also net of recorded capital outflows from devel- Development Assistance Committee (DAC) of OECD. The oping countries which amounted to $0.2 billion in 1965. oping to industrial countries. ports increase in the 1960s at a lower rate ing countries, excluding Southern Europe, deficit of other developing countries is than GDP, partly because of balance of was about $1.2 billion in 1966, the same estimated at about $4.2 billion in 1965. The payments difficulties and partly as a result as in the three previous years (Table 3). major factor in the deficit on invisibles is df import substitution. This deficit is greatly reduced by the net investment income payments, which In 1966, aggregate imports of develop- inclusion of major petroleum-exporting amounted to about $5 billion in 1965 for ing countries, excluding Southern Europe, countries, which have large trade sur- developing countries outside Southern rose at the relatively high rate of 7%. The pluses. The combined trade deficit of all Europe. increase was especially notable in East other developing countries in Africa, Asia Taking into account net receipts on pri- Asia, where imports rose by 15%, prob- and Latin America has fluctuated around vate transfers of about $1.1 billion, the ably as a result of higher foreign exchange $5.5 billion in the last few years. aggregate current account deficit for all earnings in that area. On the other hand, Reliable data on invisibles are not avail- developing countries is estimated at about imports of Africa increased by only 3%. able for several of the developing coun- $6.2 billion in 1965. This deficit in es- India and Pakistan experienced a reduc- tries. Estimates for 1965, however, indicate sence was the counterpart of a net inflow tion in the absolute value of imports in a combined net deficit on invisibles of of official and private capital. Capital 1966 because of special factors, such as about $2.2 billion, when imports are cal- flows to developing countries are dis- the slowdown in aid flows following the culated on a c.i.f. basis (Table 4). The de- cussed in some detail later in this chapter; outbreak of hostilities in the fall of 1965, veloping countries of Southern Europe had their role in the balance of payments, how- which aggravated a severe shortage of a net surplus on invisibles estimated at ever, can be seen from Table 4, which is an foreign exchange. $2.0 billion in 1965, mainly because of attempted reconciliation of trade, capital The combined trade deficit of develop- large receipts on tourism. Thus, the net and payments data for 1965. Net official 29 capital inflows amounted to about $5.9 bil- Viet-Nam and was made possible by ex- at an average annual rate of 10%, consid- lion, which is equivalent to 17% of exports penditures resulting from United States erably faster than the increase in exports of developing countries to all industrial military operations in Viet-Nam. Combined of goods and services by developing coun- countries. Net private capital inflows, after gold holdings of developing countries, tries as a group. deduction of both amortization and capital which in recent years have changed by outflows from developing countries, are only small amounts, were reduced slightly (3)The Bank collects information from Bank and IDA bor- estimated at more than $1.9 billion in 1965. in 1966, mainly due to gold payments to rowers by meana of detailed aemi-annual reporta on their A relatively large amount, some $1.4 bil- the International Monetary Fund (IMF) as external public debt payable in foreign currency or goods with an original maturity of one year or more. External lion, of foreign exchange was used in 1965 a part of a general increase in quotas. public debt consists of debt of the governments and political aubdiviaiona, their agencies, and private debt bydeveloping countries to restore their ex- External Debt of Developing Countries guaranteed by governments or their agenciea, excluding ternal reserves and other monetary assets. ExenlDbIfDveoigCutis MF drawinga. More than half the total was accounted for Debt Accumulation and Servicing The 48 countries on which data are given in Table 5 were chosen becauae of the availability of relatively conaistent by Latin American countries. Such an in- Service payments in 1966 on the public and accurate statistics over the years 1982-66. The 95 country totals of Table 5 may be taken only as indicative crease in reserves is not typical. In 1966, and publicly guaranteed external debt of of the general magnitude of the debt of developing coun- foreign exchange reserves of all develop- 95 developing countries(3) are estimated at tries as a group. In addition to the more reliable informa- tion on the selected 48 countries, they include data for the ing countries increased by some $600 mil- $3.96 billion (Table 5), of which roughly additional countries based primarily on the best available lion. Excluding Southern Europe and the $2.8 billion are amortization payments and published sources and on reports of creditor countries. Since the publication of similar data in this report last petroleum-exporting countries, the total $1.2 billion interest payments. Between year, revisions have been made to incorporate more was $490 million, most of which was ac- 1962 and 1966, payments of amortization recent information from countries which have reported regularly for several years, together with data from counted for by Korea, Thailand and South and interest on external public debt grew countries which began to report in 1966. External Public Debt Outstanding and Debt Service Payments of Developing Countries Table 5 (binions of US Dollars) Debt Outstanding Including Undisbursed December 31 Debt Outstanding June 30, 1966 Service Payments Area 1962 1963 1964 1965 Total Disbursed Undisbursed 1962 1963 1964 1965 1966il) 48 Countries() Latin America................... 8.57 9.46 10.00 11.32 11.46 9.46 2.00 1.49 1.40 1.68 1.78 1.85 South Asia ...................... 4.75 5.95 7.57 8.44 9.41 6.29 3.12 0.23 0.28 0.40 0.34 0.44 East Asia ........................ 0.93 1.29 1.40 1.74 1.95 1.09 0.86 0.07 0.07 0.08 0.13 0.19 Africa........................... 1.93 1.91 2.34 2.75 2.92 2.09 0.83 0.11 0.14 0.14 0.16 0.19 Southern Europe and Middle East. 3.83 4.27 4.81 6.07 6.02 4.15 1.87 0.40 0.44 0.54 0.55 0.63 TOTAL ....................... 20.01 22.88 26.12 30.32 31.76 23.08 8.68 2.30 2.33 2.84 2.96 3.30 95 Countries TOTAL ....................... 25.23 29.16 33.77 39,22 41.10 n.a. n.a. 2.71 2.75 3.32 3.51 3.96 n.a. = not available (1) Projected. (2) The 48 Countries are as follows: Latin America-Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Uruguay, Venezuela South Asia-Ceylon, India, Pakistan East Asia-China, Korea, Malaysia, Philippines, Singapore, Thailand Africa-Botswana, Ethiopia, Kenya, Malawi, Morocco, Nigeria, Rhodesia, Sudan, Swaziland, Tanzania, Uganda, Zambia Southern Europe and Middle East-Cyprus, Greece, Iran, Israel, Malta, Spain, Turkey, Yugoslavia. SOURCE: World Bank. 30 Total outstanding debt of the 95 devel- crease in service payments would have countries, have not been in conformity with oping countries grew even more rapidly at been considerably higher. India's debt-servicing capacity. a rate of about 16% per year from 1962 to The rapid increase in debt-service obli- A rapidly growing debt-service ratio can 1965, inclusive. By mid-1966 their total gations in recent years has put a heavy easily become unmanageable; it is par- debt exceeded $41 billion. Data by re- strain on developing countries, especially ticularly serious when there is no evident gions, including estimates of all 95 coun- those with slowly growing exports or with tendency for exports to grow as rapidly tries and more consistent information on over-all difficulties in financing import re- as debt service. Even when growing amor- 48 countries, are given in Table 5. The 48 quirements. The nature of the debt prob- tization and interest payments are offset countries account for about 83% of total lem and its close relationship to the terms in the aggregate by an increase in the estimated debt-service payments in 1966. of aid are evident in the case of India. As a gross flow of aid, debt service becomes The accumulation of outstanding debt proportion of merchandise exports, India's more and more difficult to manage be- of developing countries in recent years is debt-service payments (interest and prin- cause of the large proportion of aid which basically the counterpart of the public cipal) increased from 10% in 1962 to 22% is country-tied and commodity-restricted. capital inflow. The recent tendency of in 1966, resulting from an 84% rise in Debt-service payments must be financed creditor countries to reduce the ratio of debt-service obligations while exports in- from free exchange, leaving inadequate grants to loans in the total flow of develop- creased by only 14%. The level of cur- amounts available to finance imports and ment assistance has been an important rent debt-service payments is determined other payments to non aid-giving coun- factor in the rapid increase in the develop- mainly by the volume and terms of aid tries or to purchase commodities not ing countries' indebtedness. Debt accu- given in the past, especially during the eligible for aid-financing. mulation per se need not be a source of 1950s. The average terms of loans, while In several other developing countries, concern, so long as the terms of loans are more concessionary than for many other a high debt-service ratio (see Table 7) is commensurate with the debt-servicing ca- pat oExternal Debt Outstanding and Debt Service Payments of the Larger Debtors Table 6 pacity of the borrowing countries. lndeut- (billions of US Dollars edness and debt-servicing burdens vary widely, but a few general trends are dis- Debt Outstanding, Including Undisbursed as cernible for broad groups of developing of December 31 Service Payments countries. Countries 1962 1963 1964 1965 June 30, 1962 1963 1964 1965 1966(4) The most significant trend in recent years has been the sharp increase in debt- India() ..... 3.78 4.60 5.61 6.25 6.90 0.19 0.20 0.33 0.27 0.35 service payments of developing countries Brazil3) ...... 2.16 2.22 2.30 3.04 2.93 0.41 0.40 0.38 0.57 0.55 in South Asia, East Asia and Africa. Be- Pakistan ..... 0.87 1.23 1.84 2.07 2.34 0.03 0.07 0.06 0.07 0.08 tween 1962 and 1966, these payments Mexico ...... 1.43 1.63 1.98 2.05 2.15 0.30 0.29 0.43 0.45 0.46 Argentina5).. 2.06 2.26 1.89 1.96 1.88(2) 0.38 0.37 0.48 0.38 0.43 more than doubled in East Asia, in- Yugoslavia... 0.91 1.07 1.28 1.81 1.67(2) 0.10 0.13 0.15 0.20(4) 0.27 creased by about 90% in South Asia Turkey....... 0.94 1.04 1.20 1.32 1.43 0.08 0.08 0.12 0.09(4) 0.09 (mainly in India and Pakistan), and rose Chile ....... 0.88 0.99 1.04 1.22 1.33(2) 0.13 0.10 0.12 0.10 0.11 almost 75% in Africa (Table 5). On the Iran......... 0.51 0.57 0.60 1.04 1.10(2) 0.09 0.07 0.09 0.07 0.07 other hand, the increase was considerably Colombia.... 0.67 0.77 0.88 1.00 1.02 0.07 0.09 0.10 0.10 0.09 less for Latin America, although the abso- Israel........ 0.82 0.83 0.89 0.94 0.892) 0.09 0.10 0.12 0.11 0.12 lute amounts of debt-service payments by Nigeria...... 0.20 0.25 0.51 0.61 0.62 0.01 0.02 0.02 0.03 0.05 countries in that region have been very (1) Excludes suppliers' credits for which consistent data are unavailable. large. In turn, payments by countries of ( Preliminary. Southern Europe and the Middle East have (3) Debt outstanding includes debt of the private sector and service payments include some payments on short- term debt. risen at a relatively moderate rate. If the t4 Proected. obligations of a number of large debtors (5) Service payments data are based on incomplete information supplied by the Central Bank and by IMF which do had not been rescheduled or refinanced to not correspond in definition with the data of debt outstanding, and include some payments on private debt. avoid debt crises the average rate of in- SOURCE: World Bank. 31 mainly the result of the assumption of amounts of such credit on terms incon- that the borrowing country's total capacity short and medium-term obligations at rel- sistent with the debt-servicing capacity of to service debt incurred for development atively high interest rates, often in the the debtor countries. would not be impaired. It was pointed out form of suppliers' credits. The share of The World Bank staff study recom- that creditor countries might harmonize to payments on suppliers' credits as a per- mended a number of measures to improve a greater extent their widely varying com- centage of total debt-service payments in the use of suppliers' credits. It was sug- mercial and financial policies with respect 1965 was estimated to be 63% for Brazil, gested that governments in debtor and to suppliers' credits. The study proposed 59% for Argentina, 60% for Nigeria, 49% creditor countries should assure that only the collection and maintenance of better for Yugoslavia and 33% for Turkey. Sup- economically sound projects were fi- information on suppliers' credits and im- pliers' credits were clearly a major ele- nanced, that the terms were related to the provements in the administration of exter- ment in the debt-service burden of these life and productivity of the projects, and nal debt. It suggested further consideration countries, which account for a consider- able share of the total indebtedness of all Service Payments on External Official Debt as Percentage of Exports Table 7 developing countries. of Goods and Services for 48 Countries Problems associated with suppliers' Area and Country 1962 1963 1964 19650) 19660) credits have been reviewed in some detail by the World Bank staff, in a study pre- Latin America pared at the request of the United Nations Argentina............................................. 27.3 24.4 30.7 22.3 n.a. Conference on Trade and Developm ent Bolivia................................................ 7.4 5.9 12.8 12.6 9.1 (UNCTAD) and submitted in early 1967. It .l..22. 17.7 18.0 12.4 2a. was found, on the w hole, that suppliers' Colombia............................................. 13.0 15.1 12.8 14.7 n.a. credits have played a useful role in devel- Costa Rica........................................ 8.2 8.8 7.6 7.8 13.1 opment finance, enabling creditors to in- Dominican Republic................................... 0.8 0.3 2.7 16.9 14.3 crease exports of equipment and providing Eao8or.. .. 7.5 6.5 5.8 n.a. El Salvaoor.. ....2.7.. . . . . . . .. . . . . . . . 2.7 4.1 3.6 n.a. debtors an additional source of finance for Guatemala............................................ 11.3 4.4 6.1 3.8 n.a. investments. In some countries, however, Guyana2)............................................. 4.0 4.5 5.0 4.9 5.3 their excessive use has led to unduly high Honduras............................................. 2.8 2.8 2.9 2.5 2.3 debt-service paym ents because of m aturi- Jarnaica.............................................. 1.8 1.8 1.8 1.9 n.a. M exico ............................................... 18.8 16.8 23.3 23.0 21.4 ties considerably shorter than warranted Nicaragua............................................ 4.2 4.8 4.1 4.2 4.8 by the country's position. The ready avail- Panana.............................................. 1.6 1.8 2.4 2.6 '4.4 ability of such credits has sometimes en- Paraguay............................................. 6.3 7.8 7.6 6.5 3.0 couragedthediversionofscarceresources Uruguay.............................................. 5.6 6.1 6.0 8.6 13.1 into low priority projects. In a few extreme Vnezuela.4.7 3.4 2.9 1.6 2.2 TO TA L . . . . . . . . . . . . . . . . . . . . . .. 15.1 13.5 15.1 15.1 n.a. cases, the burden of servicing such debt has contributed to financial crises which South Asia have required rescheduling operations Ceylon............................................... 1.2 1.4 1.4 2.2 2.3 (e.g., Ghana and Indonesia in 1966; Argon- ndiaO).10.8 9.8 15.2 16.0 22.0 Pakistan............... .............................. 6.5 11.6 10.0 10.2 n.a. tina, Brazil, Chile and Turkey in previous TOTAL............................................. 8.4 9.0 12.4 12.4 n.a. years). Some debt crises have had adverse _ _ effects on the creditworthiness of the East Asia countries concerned and thus on their ac- China................................................ 4.8 3.5 2.2 3.0 2.9 K orea ................................................ 0.4 3.0 2.7 2.5 n.a. cess to foreign finance. The assumption Malasia 0.8 0.9 1.4 1.3 1.5 of excessive credits has not been the sole Philippin ...... 4.0 3.2 2.8 5.5 n.a. responsibility of the debtor countries; ex- Singapore(2)........................................... 0.05 0.06 0.07 0.1 0.1 port promotion among creditor countries Thailand.............................................. 3.0 2.6 3.2 3.2 3.1 has often led to the provision of excessive TOTAL............................................. 1.7 1.7 1.8 2.5 n.a. 32 (continued) by creditor countries of arrangements to Average Terms of Debt Average terms of loans improved some- separate the financing and commercial as- Data on average terms of new debt, based what for debt contracted in 1964, but in pects of the sale of capital goods, in par- on reports submitted by debtor countries 1965 they became less concessionary than ticular by placing greater emphasis on the to the World Bank, are now available for a in the two previous years. The hardening use of financial rather than commercial sample of 46 countries representing about of debt terms in 1964 and 1965 is evi- credits. It also recommended improve- 57% of total external debt of developing denced not only by higher rates of inter- ments in the international coordination of countries, as of the end of 1965. These fig- est, but also by shorter grace periods and steps to deal with the debt situation of in- ures, of course, reflect the terms on loans maturities. Southern Europe was the only dividual countries. These and other rec- only. The share of grants in official bilat- region unaffected by this trend. ommendations will be discussed by appro- eral aid has declined from 76% in 1961 to The terms of debt show considerable priate committees of UNCTAD and OECD. 65% in 1965 and to 63% in 1966. variation by credits (Table 8). The im- provement in 1964 is accounted for to a Service Payments on External Official Debt as Percentage of Exports Table 7 large extent by an increase in the share of Goods and Services for 48 Countries (continued) of IDA lending. Bilateral loans, however, Area and Country 1962 1963 '96- 19650) 19662) tended between 1963 and 1965 to be con- Ar- tracted at higher interest rates and shorter Botsw ana............................................. 3.7 4.0 3.5 3.8 n.a. m aturities. This resulted m ainly from a Ethiopia.............................................. 3.5 5.8 4.9 4.9 6.4 hardening of term s of United States loans, Kenya................................................ 7.10) 3.1 8.5 4.0 n.a. although the term s offered by the United Malaw ........................... ............. .... n.a. 8.6 n.a, States are still softer than those of bilat- mod. ia(2) . . . . .6.3 6.15). eral loans from most other DAC members. Morocco....................................... .... 1.8 24 1.7 2.7 n.a. The highest interest on all public loans in Nigeria......................................... .. .. 1.9 3.3 3.0 3.5 54 1965 w as charged on publicly issued Sudan ............................................... 7.2 6.6 7.9 5.8 6.5 bonds. Interest rates on suppliers' credits Swaziland(2)..................................... ..... 3.0 2.6 6.3 11.3 n.a. and other private financing, considering Tanzania .2.1 2.0 1.7 2.1 n.a. Uganda a.4 2.5 2.3 2.7 n.a. only publicly guaranteed debt, have been TOTAL) ............................... ......... 4.5 4.5 4.0 4,3 n.a. reported as 6% on the average; prices Southern Europe --- charged for equipment under such ar- and Middle East rangements, however, are often relatively C'yprus ..................................... ....... . 1.7 1.7 1.9 1.4 1.6 h ig h . Greece............................................... 3.3 2.5 2.5 4.6 4.3 Average term s of loans also vary con- Iran.................................................. 9.1(4) 6.6(0) 7.4 5.5 5.0 siderably am ong debtor countries (Table Israel ..19.0 18.1 19.7 14.9 n.a. 9) Alth Malta.... ...........................- 0.4 0.6 n.. ough figures for one year may not Spain ..1.6 2.5 2.0 2.0 n.a. be representative of the terms on which a Turkey................................................ 16.0 14.7 20.2 13.7 11.6 country norm ally borrows, the relative po- Yugoslavia....... ...............6......... 10.6 12.0 11.7 13.3 n.a. sition of the five regions shown in Table 7 TOTAL............................................. 8.0 7.8 11.3 7.2 n.a. changed little in the three years 1963-65. GRAND TOTAL...................................... 9.6 8.8 10.5 9.6 n.a. Interest rates were highest for Latin Amer- ica and East Asia and lowest for South n.a.= not available Asia. Terms of loans for African countries (1) 1966 and some 1965 ratios are computed from preliminary figures of exports of goods and services. have been somewhat harder than the aver- (2) Ratios are computed on exports of goods only. Debt figures exclude supplers' credits in the case of India. age for all developing countries. 0) Ratios include loans made to the East African Common Services Organisation as an individual entity. (4) Ratios are computed on exports of goods and services in solar years (March 21-March20). Capital Flows to Developing Countries (5) Forthe years 1962 and 1963 Malawi, Rhodesia and Zambiawere considered as one country, the Federation of Rnodesia and Nyasaland. The flow of official capital from IDA Part I SOURCE: World Bank; IMF, Balance ofPayments Yearbook and International Financial Statistics. member countries (see Pagel9 ) to devel- 33 oping countries and to multilateral institu- United Kingdom and the Federal Republic bers, New Zealand, Portugal and Switzer- tions, net of amortization, is estimated on of Germany have shown only small land provided official aid totaling about the basis of preliminary figures, mainly changes during the last five years. Thus, $50 million in 1966. from DAC and partly from World Bank the four largest donors, which account for Aid from some developing countries to sources, at about $6.5 billion in 1966 some 80% of total assistance by IDA Part I others has been mainly in the form of tech- (Table 10). Official assistance increased by members, did not increase their aggregate nical assistance, as shown in some detail some $240 million from 1965 and was aid between 1961 and 1966. A trend of in the Annual Report of last year. Data re- about $400 million higher than the average continued increase has been maintained ceived from a number of developing coun- of the five years 1961 to 1965. by a number of smaller aid providers, es- tries show a continued expansion in assist- United States official aid disbursements pecially Australia, Denmark, Japan and ance given by Argentina, Brazil, the Re- in 1966 were at about the same level as in Sweden; aid from Canada almost doubled public of China, India, Ireland, Israel, the five previous years. Aid from France, in 1966 over 1965. The Soviet Union and Mexico, Spain, Venezuela and Yugoslavia. the largest aid provider in relation to its Eastern Europe outside of Yugoslavia are On the basis of partial data, disbursements national income, continued the declining estimated to have disbursed aid of the of bilateral and multilateral aid by these trend which began in 1962, mainly be- magnitude of $350 million to $400 million countries exceeded $100 million in 1966. cause of the change in relationships with a year, net of repayments. Among other Net official capital receipts by develop- countries in North Africa. Aid from the countries which are not IDA Part I mem- ing countries show a somewhat faster in- Weighted Average Terms of External Public Debt of 46 Developing Countries, by Sources Table 8 Incurred in 1963 Incurred in 1964 Incurred in 1965 Contractual Rate of Grace Terms to Contractual Rate of Grace Terms to Contractual Rate of Grace Terms to Amount Interest Period Maturity Amount Interest Period Maturity Amount Interest Period Maturity Item (mil. US $) (%) (Years) (Years) (mil. US $) (%) (Years) (Years) (mil. US $) (%) (Years) (Years) Total External Public Debt 3,116.9 3.81 5.7 23.9 3.537.5 3.75 6.0 24.9 3,540.1 4.10 5.1 20.3 Publicly issued bonds.................. 31.3 6.34 3.1 14.3 93.6 4.26 4.6 15.7 63.8 6.12 1.2 10.9 Privately placed debts.................. 496.0 5.82 1.5 8.0 695.5 5.90 2.0 7.6 691.2 5.94 1.6 7.1 Suppliers' credits..................... 307.0 5.75 1.6 9.6 381.4 5.78 2.2 9.0 371.2 6.06 1.6 8.9 Other................................. 189.0 5.94 1.4 5.4 314.1 6.05 1.8 5.9 320.0 5.80 1.5 4.9 Loans from internationa organizations... 654.4 4.29 5.8 27.2 865.0 3.43 7.0 33.9 807.8 4.46 6.5 27.5 W orld Bank........................... 417.1 5.50 4.0 20.4 419.9 5.50 4.4 23.3 545.9 5.50 4.8 21.9 IDA ................... ......... ... . 169.5 0.75 11.1 49.3 375.9 0.75 10.8 49.7 180.0 0.75 12.9 49.1 Inter-American Development Bank...... 64.1 5.69 3.4 13.9 41.9 5.77 3.5 14.0 54.8 5.94 3.6 13.8 Other................................. 3.8 5.27 2.8 12.6 27.3 5.04 1.2 9.6 27.2 5.18 4.8 23.3 Total bilateral loans.................... 1,912.9 3.10 6.9 27.2 1,714.1 3.19 7.2 29.0 1,553.5 3.56 6.4 24.4 Loans from U S ....................... 1,072.2 1.61 9.0 34.9 1,125.8 2.41 8.4 33.2 926.4 2.92 7.5 28.4 Loans from other Bank members and Switzerland....................... 840.8 4.99 4.2 17.4 588.3 4.68 4.8 20.8 627.1 4.52 4.7 18.5 of which: Germany............................. 288.1 5.10 5.0 17.2 135.6 3.98 4.8 18.9 160.4 4.21 3.8 18.9 France............................... 170.0 3.61 1.7 16.3 72.4 3.38 1.9 19.9 48.7 4.45 1.7 12.0 U.K ................................. 181.2 5.01 4.6 21.8 224.6 4.98 6.1 24.1 143.3 4.27 6.0 22.7 Loans from other countries.............. 22.2 2.95 2.4 7.6 169.3 1.95 6.2 13.7 423.7 2.03 4.5 15.0 Note: Calcuiations on average terms are based on data reported to the Bank by member countries. The terms used in the calculation are, where possible, the original terms but in some cases may reflect subsequent revisions of terms. For agreements making credit available under general terms applicable to future allocations, the total amount of credit is shown in the year in which the general agreement is signed at the terms applicable to each allocation. Other debts for which clear-cut terms are not available have been excluded from the calculation. SOURCE: World Bank. 34 crease in recent years than indicated by Weighted Average Terms of External Public Debt Incurred Table 9 figures on contributions by IDA Part I coun- in 1965 by 40 Developing Countriesm tries, mainlybecause of the relatively rapid Other('): rise in the volume of loans from multilat- Contractual Rate of Grace Terms to Contractual eral institutions. This trend seems to have Amount Interest Period Maturity Amount continued in 1966. If the price increase of Country (mil. US $) (%) (years) (years) ( (mil. US $) goods financed is taken into account, how- Grand Total 3,540.1 4.10 5.1 20.3 216.0 ever, the real value of the official capital Africa 448.1 4.27 6.4 22.9 141.2 inflow in terms of import financing capac- East African Common Services Org............ 38.9 5.38 7.0 29.9 68.7 Ethiopia ...................... .............. 24.1 4.31 2.9 16.2 2.6 ity may have barely increased from 1961 Kenya........................ .............. 57.6 5.35 5.1 22.8 27.8 to 1966. At the same time, the interest pay- Malagasy ..................... ........ .4 2.90 3.6 10.1 - M orocco ....... .............. ... .... .... 110.4 3.99 5.3 18.6 13.1 ments on the official bilateral loans and Nigeria ............. ..... .. ........ ... 117,3 3.48 9.4 29.8 17.3 loans from multilateral development insti- Rhodesia..... .. ................... .... 7.0 5.50 15.0 15.0 2.8 tutions have at least doubled over this Senegal .................... ..... 10.8 2.50 3.4 16.7 0.1 Sudan .. . . . . . . . . . . . . . . .... 62.5 4.65 4.8 19.0 period to an estimated $650 million in 1966. Tansan a 6. .. . 5.0 5.80 5.8 21.5 Private capital flows from IDA Part I Uganda . ..... .... ....... 14.1 3.87 4.6 16.8 - members to developing countries in 1966, South Europe and Middle East 835.8 3.69 3.8 14.0 5,2 net of amortization, are provisionally esti- Cyprus. ... ....... ..... 1.4 4.33 1.1 3.5 1,1 Greece ............ . ..... 77.7 4.33 2.0 15.1 2.0 mated at about $3.4 billion, considerably Israel.... ......... . . .... 63.4 4.68 3.9 17.9 less than the volume of almost $4 billion in Malta ....... . ..... 1.5 6.75 1.0 25.0 Spain . . . . . . . . . . .. . . . . . . ..86.8 5.58 2.4 13.9 1.6 the peak year of 1965. The flow of such Yugoslavia . . . 604.9 3.22 4.2 13.4 0.5 capital from the U.S., net of amortization, Latin America 794.6 5.04 4.1 16.1 36.9 declined from $1,870 million in 1965 to Argentina . . 221.4 5.60 1.8 7.2 23.6 $980 million in 1966. This reduction was Chile. .. . .. 179.3 4.02 6.5 24.5 0.8 Costa Rica .. . . . . . . . . . ... . .. . .. 19.3 4,10 5.1 20.6 partly offset by increases from Italy and Dominican Republic . . 22.1 3.76 5.1 20.7 0.2 the United Kingdom. It appears that the Ecuador . ... ... ...... . 17.7 4.77 2.4 13.4 - Feduction in private capital outflows, espe- El Salvador .. ........ ... 6.3 3.03 7.4 24.8 2.0 Guatemala . . . . ....... 4.7 1.11 10.5 40.5 0.3 cially from the United States, affected Guyana........ . . ........ 7.8 2.88 7.7 35.9 - mostly petroleum-producing countries in Honduras ...... ........ 18.3 3.05 8.3 34.2 the Middle East and North Africa. Jamaica... ........... 19.6 5.42 4.0 22.0 - Nicaragua ....... . .. .... . .. 17.0 4.41 6.4 26.6 0.9 Paraguay ....... . 14.1 6.25 4.2 16.0 0.4 International Capital Markets Peru...... . . . .. ..... 136.0 5.89 3.8 15.4 2.5 Trinidad and Tobago ... .... 4.0 5.50 3.5 15.0 - Activity on international capital markets Uruguay...... . . ...... . 24.3 5.85 3.1 11.0 - continued in 1966 at the high levels of 1965 Venezuela..... . ....... 82.5 5.56 2.8 11.2 6.3 (Table 11). Sales of new foreign bonds in South Asia 972.6 3.19 7.1 30.0 17.2 lndia(2) .... ... . .. . . . . . . . ... 710.0 3.18 7.4 31.3 the New York market contracted in 1966 Pakistan ... . 262.6 3.22 6.3 26.3 16.9 but this was more than made up by the East Asia 489.0 4.90 4.1 16.8 15.5 marked increase in issues placed in China...... .. ....... 110.5 5.41 3.6 14.7 6.8 Europe, particularly in the Euro-issue Korea ........ ....... 122.6 3.27 7.7 29.5 0.6 M alaysia ...... ... .... ..... .... 73.7 5.37 3.7 17.7 0.8 market for securities denominated in a Philippines .... .... ............... 146.4 5.84 1.3 5.7 0.2 currency other than that of the market Thailand.... . ..... .. ............. 35.6 4.00 5,0 22,8 7.2 where they are sold. The shift in activity Note: See Note to Table 8. from New York to Europe, which continued ( Botswana, Ceylon, Gabon, Mauritania, Swaziland and Zambia which are included in Table 8 are excluded here because no debt was incurred in 1965, or because terms of loans are unknown. to intensify in early 1967, has been a major (2) Does not include suppliers' credits. development in international capital (3) Terms for these not available. markets. Unavailable figures indicated by SOURCE: World Bank. 35 The contraction of international issues sues in Europe, and in particular of inter- pared to $221 million in 1965. On the other placed in New York has been mainly the national issues for sale in a number of hand, continental European markets, in result of measures taken to reduce the def- countries. The major increase was in is- which developing countries placed no icit in the United States balance of pay- sues offered by international subsidiaries issues in 1965, opened in 1966 to a num- ments. The Interest Equalization Tax on of United States corporations, mainly in ber of issues totaling about $100 million. purchases by United States residents of Belgium and Luxembourg. Traditional bor- Among developing countries, Mexico, Por- certain foreign securities has been in rowers in international markets such as the tugal and Peru were the major borrowers effect since 1963. Voluntary restraints Scandinavian countries and Mexico have in Europe. Due to conditions prevailing in requested by the United States Govern- also shifted to Europe. In the first half of the London market, Jamaica was the only ment from banks and corporations with 1967, in spite of a sharp reduction in the developing country to place an issue in respect to their capital outflows were intro- funds sought by American corporations, London in 1966. Early in 1967, France took duced in 1965. The narrowing of the dif- international issues sold on the Euro-issue measures to liberalize capital movements ference between interest rates in the market far exceeded the 1966 levels, and facilitate the access of foreign bor- United States and Europe also tended to To a certain extent, these developments rowers to the French market, but so far reduce somewhat the demand pressure also affected bond issues by less devel- no borrowing by a developing country has exerted by external borrowers on United oped countries, although they have been yet taken place this year. States capital markets. exempted from the United States Interest In 1966, the World Bank floated a bond These factors considerably reduced for- Equalization Tax. Total issues placed by issue of $175 million in New York, as well eign borrowing in the United States and developing countries in New York in 1966 as two issues equivalent to US$37 million helped to raise the volume of foreign is- were valued at about $142 million, com- in Canada. The Inter-American Develop- Flow of Net01) Financial Resources from IDA Part I Countries to Developing Countries and Multilateral Institutions Table 10 (millions of US Dollars) Official Private Country 1961 1962 1963 1964 1965 1966(P) 1961 1962 1963 1964 1965 1966T) Australia....................... 71 74 97 104 122 129 - - 7 20 23 8 Austria........................ 2 14 2 15 34 37 18 17 4 7 14 12 Belgium ....................... 92 80 90 82 112 92 82 48 95 93 120 91 Canada........................ 62 54 98 128 124 208 39 55 33 14 45 55 Denmark................ 8 7 10 11 13 26 25 7 1 21 9 (-2) Finland. .................... (2) (2) 2 4 - (2) - - - - - France ......................... 943 977 851 831 752 721 489 420 414 550 567 569 Germany....................... 618 468 437 423 472 490 219 182 165 268 234 248 Italy........................... 85 110 110 54 93 118 177 284 216 188 178 510 Japan ......................... 109 88 140 116 244 285 274 199 127 174 242 254 Kuwait ........................ 66 3 129 119 62 86 - - - - - - Netherlands................... 69 91 38 48 59 85 144 49 97 69 169 169 Norway........................ 9 7 21 17 12 13 18 - 1 6 27 6 Sweden........................ 8 19 23 33 38 56 44 19 31 34 31 51 United Kingdom ................ 457 421 415 493 481 501 455 331 309 425 429 (472) United States .................. 3,447 3,536 3,699 3,445 3,627 3,634 1,099 819 880 1,325 1,873 979 TOTAL ...................... 6,048 5,951 6,162 5,923 6,245 6,483 3,083 2,430 2,380 3,194 3,961 3,422 (P)= Preliminary (1) Net of Amortization. Data for South Africa are not available, while aid from Luxembourg has been very small. Figures in parentheses are crude estimates. Unavailable figures indicated by -. SOURCE: DAC for all countries except Finland and Kuwait, for which communications from their governments are the source. 36 New Bond Issues Placed Internationally by Market and Country of Borrowing Entity ) Table 11 (millions of US Dollars) Calendar Years Calendar Years ________ First half -_______ First half 1965 1966 1967(P) 1965 1966 1967(P) Placed in New York: Placed in Other Markets or in More Than One Market:6) MULTILATERAL DEVELOPMENT INSTITUTIONS MULTILATERAL DEVELOPMENT INSTITUTIONS W orld Bank(2) .................... 200.02) 175.0(2) 250.0(2) W orld Bankm)................_ . 335.1m 308.7m7) 145.9(7) Inter-American Development Bank. - - 50.0 Inter-American Development Bank. - 100.6 30.0 Subtotal........................ 175.0 300.0........................ 335.1 409.3 175.9 DEVELOPING COUNTRIES Developing Countries A lgeria .......................... - 15.0 - Gabon ........................... - 2.4 - A rgentina ....................... - 3.5 - Israel............................ - 0.8 - Baham as........................ - 14.0 - M exico.......................... - 45.0 65.0 Israel............................ 96.3 60.7 24.0 Peru..................... - 24.5 - Jamaica................... - 7.5 - Portugalo.o. ..................... - 29.0 - Liberia .......................... 6.0 - - Venezuela ....................... - 0.7 - M alaysia .................. ...... 25.0- - Subtotal........................ - 102.4 65.0 M exico .................... ..... 43.4 15.7 - Peru - 10.2 - OTHER COUNTRIES AND Philippines. . .......... 0 - - EUROPEAN INSTITUTIONS Portuga ppn... 12.0 - A a....................... .0.6 V enezuela ....................... 15.5 3.0 0.1 A elg ir n .. 38.2 36.3 2 141.5 24.1 Beium. .. . .. . .. .. . ..- 30.0 40.0 Subtotal ........................ 2 1.2 Denmark........ 35.0 47.6 37.0 OTHER COUNTRIES Finland.......................... 11.2 4.0 12.0 Canada( ........................ 780.7(3) 943.2(3) 513.1(3) France.......................... 41.5 46.3 100.0 Finland .......................... 25.0 - - Germ any........................ 8.1 - - Iceland .......................... 0.3 6.0 - Ireland .......................... - 33.6 - Japan ........................... 62.5 5.5 - Italy ............................. 79.8 40.0 25.0 Unites States s(4)80 .0.-.I.al..79.8.400.025.0 SJapan ........................... 35.0- - Subtotal ........................ 9485 954.7 513.1 Luxem bourg..................... 122.4 264.1 166.0 - TOTAL NEW YORK ............ 369.7 1,271.3 837.2 Netherlands..................... 32.8 36.9 20.0 Placed in London: New Zealand .................... 20.0 25.0 20.2 DEVELOPING COUNTRIES Norway.......................... 107.5 20.0 57.8 Jamaica ........................ 8.8 8.4 - South Africa..................... 12.5 25.0 62.5 OTHER COUNTRIES Sweden......................... 71.2 34.0 15.0 Australia.a................. 22 - - Switzerland(4) 2.8 - Ireland .......................... 3. 14.0 - United Kingdom ................. 48.1 22.6 41.6 New Zealand.................... 28.0 33.6 - United States.................... 220.0 564.3 233.2 United Kingdom(4)...... ........ 7.8 14.0 - Council of Europe................ 7.5 6.0 - Subtotal........................ 61.8 61.6 - Eurofim a( ....................... 24.3 6.9 26.9 TOTAL LONDON .............. 70.6 70.0 - European Coal and Steel Community................ 48.6 103.0 25.0 (P)= Preliminary figures. European Investment Bank........ 65.1 138.5 25.0 (1) Includes issues both publicly offered and privately placed. Interfrigo(9 ...................... - 6.9 - (2) Redemntion and repurchases of IBRD bonds sold on the New York market amounted to $32.5 million in 1965,$35.3 million in 1966 and $23.4 million in the first half of 1967. Subtotal....................... 1,052.4 1,520.7 980.1 (3) Redemptions and repurchases of Canadian bonds and debentures held by non-residents TOTAL OTHER ................ 1,387.5 2,032.4 1,221.0 amounted to $346 million in 1965 ($101 million payable in Canadian dollars; $245 million payable in foreign currency); $460 million in 1966; and about $184 million in the first half Recapitulation: of 1967. MULTILATERAL DEVELOPMENT (4) Issues by domestic companies operating mainly outside the country. INSTITUTIONS.53..3 584.3 475.9 (5) Excluding Euro-band issues. (6) Includes Canada, Continental Europe and the Euro-issue market. DEVELOPING COUNTRIES .......... 230.0 252.4 89.1 (7) Redemption and repurchases of IBRD bonds sold outside the United States amounted to OTHER COUNTRIES AND $260.1 million in 1965, $189.9 million in 1966, and $48.7 million in the first half of 1967. INTIUTIONS.7 2,537.0 1,493.2 (8) Soci6tk Europ6enne pour le Financement de Mat6riel Ferroviaire IO .. .70 1 (9) Soci6t6 Ferroviaire Internationale de Transports Frigorifiques. GRAND TOTAL............... 2,827.8 3,373.7 2,058.2 SOURCE: World Bank 37 ment Bank placed an issue equivalent to on central government bonds had risen $24 million in Italy, and another of $11.6 sharply over their 1965 levels in most in- million in Switzerland. The volume of bor- dustrial countries. The increase was most rowing in the United States by multilateral pronounced in Germany and the Nether- institutions was allowed to increase in lands. Yields on long-term bonds reached 1967. The Inter-American Development a peak in August 1966 in the United States, Bank floated an issue of $50 million in Jan- the United Kingdom and Germany, and for uary, and in March the World Bank placed European dollar-denominated bonds. The an issue in New York of $250 million, the general rise in interest rates increased the largest in its history. In June 1967, the cost of new bond issues by multilateral World Bank placed an issue of the equiva- institutions. The World Bank's Canadian lent of approximately $14 million in issue in November 1966 carried a yield of Switzerland. 6.41%, the highest rate the Bank has paid The World Bank and the Inter-American on a new issue, while the yield on its $250 Development Bank also sold short-term million issue in the United States in March bonds and notes to central banks and offi- 1967 was 5.35%. Although the general cial institutions in many countries outside level of interest rates had declined some- the United States totaling $336.7 million in what as of June 1967, rates on long-term 1966 and $162 million through June 1967. bonds have generally remained well above By the middle of 1966, average yields the levels prevailing until 1966. Yields on Long-Term Government Bonds in Selected Capital Markets Chart II Per Cent 9% 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1i l i r l fII I I I I I Il I T a r g eI I I I r MonthlyFrankfurt 8% Lonon -European DoHEar 5% Paris Amsterdam 4% New York Zurich 1963 1964 1965 1966 1967 Amsterdam-Netherlands Government Perpetual 3% New York-U.S. Treasury 3%%, 1983/78 Frankfurt-Average of Bonds of Public Authorities Paris-French Government Rente Perpetuelle 5%, 1949 London-U.K. Government Consols 2y2y Zurich-Swiss Government 3%, 1949-1974. From Sept. 1966, London (European Dollar)-Weighted Average Yield Swiss Government 4%%, 1966-1981 to Maturity of 16 issues 38 Appendices 39 40 Bank Appendices Page A B alance S heet........................... ................... 42 B Comparative Statement of Income and Expenses.............. 44 C Statement of Subscriptions to Capital Stock and Voting Power... 45 D Summary Statement of Loans............... ................ 47 E Funded Debt of the Bank................a................... 49 F Notes to Financial Statem ents................................ 51 OPINION OF INDEPENDENT AUDITOR..........-.................. 52 G Statement of Loans Signed During the Fiscal Year 1966/67.... 53 41 Balance Sheet June 30, 1967 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Assets DUE FROM BANKS AND OTHER DEPOSITORIES Member currencies, including $9,796,461 United States dollars U nrestricted ............................................................................... $ 15,748,928 Subject to restrictions- Note B .............................................................. 125,850,390 $141,599,318 Non-mem ber currency (Swiss francs)......................................................... 15,504,564 $ 157,103,882 INVESTMENTS Government obligations (At cost or amortized cost) Face amount $466,934,913 including $257,191,000 obligations of United States Government and its Instrumentalities......................................................... $463,079,579 Time deposits, including $500,000,000 United States dollars................................................... 518,268,272 A ccrued interest ................................................................................. .......... 27,193,552 1,008,541,403 RECEIVABLE ON ACCOUNT OF SUBSCRIBED CAPITAL (See Appendix C) Member currencies, other than United States dollars-Note B Non-negotiable, non-interest-bearing, demand notes......................................................... 373,189,743 EFFECTIVE LOANS HELD BY BANK (See Appendix D)-Note C (Including undisbursed balance of $2,260,729,819) ............................................................ 7,001,533,263 ACCRUED CHARGES ON LOAN S- Note C......................................................................... 72,577,387 RECEIVABLE FROM PURCHASERS ON ACCOUNT OF EFFECTIVE LOANS AGREED TO BE SOLD (Including undisbursed balance of $7,529,688)......................................................... 17,866,982 UNAMORTIZED BOND ISSUANCE COSTS.......................................................................... 18,787,262 LA ND A ND BU ILD INGS ......................................................................................... $ 26,592,100 Less- Reserve for depreciation ............................................................................... 2,595,216 23,996,884 O TH ER A SSETS............................................................................. ............ 5,203,466 SPECIAL RESERVE FUND ASSETS-Note D Due from Banks- member currency- United States........................................................... $ 534 Investment securities-Obligations of United States Government and its Instrumentalities ($290,359,000 face amount; at cost or amortized cost) ....................................... 290,179,374 Accrued loan com missions- Note C.......................................................................... 242,410 290,422,318 STAFF RETIREMENT PLAN ASSETS (Segregated and held in trust)............................................................................... 30,599,038 TO TA L A SS ETS9................................................................... .......... .......... $8,999,821,628 42 Appendix A International Bank for Reconstruction and Development Liabilities, Reserves and Capital LIABILITIES A ccrued interest on borrow ings............................................................................. $ 46,267,720 A ccounts payable and other liabilities . ................................................... .................... 6,835,294 Due to International Developm ent Association . ............................................................... 92,300,000 Undisbursed balance of effective loans (See Appendix D) H e ld by B a n k ..................2..................................................... ..................... $ 2,260,729,819 A greed to be sold ....2..................................................... ................... ........... 7,529,688 2,268,259,507 Funded debt (See Appendix E) (Of this amount $472,368,289 is due within one year).......................................................... 3,075,249,015 RESERVES FOR LOSSES S pecial reserve- N ote D........................... ....... .............. . .............................. $ 290,422,318 Supplemental reserve against losses on loans and guarantees-Note E......................................... 732,574,509 1,022,996,827 STAFF RETIREM ENT PLAN RESERVE... .......................................................................... 30,599,038 CAPITAL Capital stock (See Appendix C)-Note F Authorized 240,000 shares of $100,000 par value each Subscribed 228,498 shares .................................................................... ............ $22,849,800,000 - Less-Uncalled portion of subscriptions-Note G........................................................... 20,564,820,000 2,284,980,000 Payments on account of pending subscriptions..................... ....................................... 2,738,000 Net income-Note E From July 1, 1966 to June 30,1967 ................ .......... ............................................... 169,596,227 TOTAL LIABILITIES, RESERVES AND CAPITAL........................................................... $8,999,821,628 43 Comparative Statement of Income and Expenses Appendix B International Bank for Reconstruction and Development For the Fiscal Years Ended June 30, 1966 and June 30, 1967 Expressed in United States Currency-See Notes to Financial Statements, Appendix F July 1-June 30 1965/66 1966/67 Income Income from investments.................................................... $ 63,098,843 $ 71,955,494 Income from loans: Interest ................................................................... 219.051,360 247,195,497 Com m itm ent charges...................................................... 6,962,355 7,688,716 Com m issions.............................................................. 766,274 684,528 Service charges............................................................ 79,597 102,002 Other incomeoe .. 4.........6..........58.............. 2,431,658 4,302,548 GROSS INCOM E.......................................................... $292.390,087 $331,928,785 Deduct-Amount equivalent to commissions appropriated to Special Reserve-Note D................................... 766,274 684,528 Gross Income Less Reserve Deduction .................................... $291,623,813 $331,244,257 Expenses Administrative expenses: Personal services.......................................................... $ 11,575,433 $ 13,855,323 Contributions to staff benefits............................................... 1,871,545 2,197,683 Fees and com pensation.................................................... 1,350,218 1,109,323 Representation............................................................. 207 102 234,256 T ravel..................................................................... 2,988,728 2,937,023 Supplies and m aterial...................................................... 200,034 213,353 Office occupancy.......................................................... 1,432,886 1,578,495 Com m unication services.................................................... 729,485 755,564 Furniture and equipm ent................................................... 459,494 554,698 Books and library services.................................................. 214,847 262,954 P rinting ................................................................... 381,431 429,634 Insurance .................................................................. 99,715 111,445 Other expenses............................................................ 28,262 32,380 TOTAL ADMINISTRATIVE EXPENSES..................................... $ 21,539,180 $ 24,272,131 Services to mem ber countries................................................ 8268,496 6,511,926 Interest on borrowings....................................................... 115,976,299 128,701,615 Bond issuance and other financial expenses.................................. 2,011,263 2,092,885 Discount on sale of loans.................................................... 95,375 69,473 GROSS EXPENSES........................................................ $147,890,613 $161,648,030 Net Incom e .............................................................. $143,733,200 $169,596,227 44 Statement of Subscriptions to Capital Stock and Voting Power Appendix C International Bank for Reconstruction and Development June 30, 1967 Expressed in United States Currency (in thousands)-See Notes to Financial Statements, Appendix F Amounts Paid in In currency In non- of member negotiable, other than non-interest- Subject to call Subscriptions United bearing, to meet Voting Power In United States demand obligations Percent Amount States dollars notes of Bank Number Percent Member Shares of total (Note F) dollars (Note B) (Note B) (Note G) of votes of total Afghanistan............................ 300 .13 $ 30,000 $ 300 $ 1,200 $ 1,500 $ 27,000 550 .22 Algeria................................. 800 .35 80,000 800 72 7,128 72,000 1,050 .41 Argentina. ............................. 3,733 1.63 373,300 3,733 27,000 6,597 335,970 3,983 1.56 Australia............................... 5,330 2.33 533,000 5,330 47,970 - 479,700 5,580 2.19 Austria................................. 1,867 .82 186,700 1,867 11,601 5,202 168,030 2,117 .83 Belgium................................ 4,500 1.97 450,000 4,500 40,500 - 405,000 4,750 1.86 Bolivia................................. 210 .09 21,000 210 13 1,877 18,900 460 .18 Brazil.................................. 3,733 1.63 373,300 3,733 33,597 - 335,970 3,983 1.56 Burma................................. 400 .18 40,000 400 1,207 2,393 36,000 650 .25 Burundi................................ 150 .07 15,000 150 9 1,341 13,500 400 .16 Cameroon.............................. 200 .09 20,000 200 18 1,782 18,000 450 .18 Canada................................. 7,920 3.47 792,000 7,920 71,280 - 712,800 8,170 3.20 Central African Republic................ 100 .04 10,000 100 19 881 9,000 350 .14 Ceylon................................. 827 .36 82,700 827 1,135 6,308 74,430 1,077 .42 Chad................................... 100 .04 10,000 100 9 891 9,000 350 .14 Chile 9................ .................. 933 .41 93,300 933 8,397 - 83,970 1,183 .46 China. ................................. 7,500 3.28 750,000 7,500 3,178 64,322 675,000 7,750 3.04 Colombia............................... 933 .41 93,300 8,493 837 - 83,970 1,183 .46 Congo (Brazzaville)..................... 100 .04 10,000 100 19 881 9,000 350 .14 Congo, Democratic Republic of .......... 600 .26 60,000 600 5,400 - 54,000 850 .33 Costa Rica.............................. 107 .05 10,700 467 603 - 9,630 357 .14 Cyprus................................. 150 .07 15,000 150 14 1,336 13,500 400 .16 Dahomey............................... 100 .04 10,000 100 19 881 9,000 350 .14 Denmark............................... 1,733 .76 173,300 1,733 15,597 - 155,970 1,983 .78 Dominican Republic.................... 133 .06 13,300 133 483 714 11,970 383 .15 Ecuador................................ 171 .07 17,100 1,710 - - 15,390 421 .16 El Salvador..... ....................... 107 .05 10,700 287 783 - 9,630 357 .14 Ethiopia................................ 100 .04 10,000 1,000 - - 9,000 350 .14 Finland .... ............................ 1,333 .58 133,300 1,333 11,997 - 119,970 1,583 .62 France ................................. 10,500 4.60 1,050,000 10,500 94,500 - 945,000 10,750 4.22 Gabon.................................. 100 .04 10,000 100 17 883 9,000 350 .14 Germany, Federal Republic of.........._ 12,80 5.60 1,280,000 12,800 97,950 17,250 1,152,000 13,050 5.12 Ghana.................................. 467 .20 46,700 467 2,702 1,501 42,030 717 .28 Greece................................. 667 .29 66,700 667 6,003 - 60,030 917 .36 Guatemala.............................. 107 .05 10,700 467 603 - 9,630 357 .14 Guinea................................. 200 .09 20,000 200 1,800 - 18,000 450 .18 Guyana................................. 160 .07 16,000 160 17 1,423 14,400 410 .16 Haiti................................... 150 .07 15,000 150 35 1,315 13,500 400 .16 Honduras............................... 80 .03 8,000 620 - 180 7,200 330 .13 Iceland ................................ 150 .07 15,000 1,032 26 442 13,500 400 .16 India. .................................. 8,000 3.50 800,000 8,000 17,725 54,275 720,000 8,250 3.24 Indonesia............................... 2,200 .96 220,000 2,200 198 19,602 198,000 2,450 .96 Iran.................................... 1,286 .56 128,600 1,286 7,416 4,158 115,740 1,536 .60 Iraq................................... 640 .28 64,000 640 1,350 4,410 57,600 890 .35 Ireland................................. 853 .37 85,300 853 5,855 1,822 76,770 1,103 .43 Israel................................... 959 .42 95,900 959 2,997 5,634 86,310 1,209 .47 Italy.................................... 6,660 2.91 666,000 6,660 59,940 - 599,400 6,910 2.71 Ivory Coast............................. 200 .09 20,000 200 504 1,296 18,000 450 .18 Jamaica................................ 320 .14 32,000 320 24 2,856 28,800 570 .22 Japan.................................. 7,726 3.38 772,600 7,726 69,534 - 695,340 7,976 3.13 Jordan................................. 163 .07 16,300 163 52 1,415 14,670 413 .16 Kenya.................................. 333 .15 33,300 333 491 2,506 29,970 583 .23 Korea.................................. 250 .11 25,000 250 2,250 - 22,500 500 .20 Kuwait................................. 667 .29 66,700 667 6,003 - 60,030 917 .36 (continued) 45 Statement of Subscriptions to Capital Stock and Voting Power (continued) Appendix C International Bank for Reconstruction and Development June 30, 1967 Expressed in United States Currency (in thousands)-See Notes to Financial Statements, Appendix F Amounts Paid in In currency In non- of member negotiable, other than non-interest- Subject to call Subscriptions United bearing, to meet Voting Power In United States demand obligations Percent Amount States dollars notes of Bank Number Percent Member Shares of total (Note F) dollars (Note B) (Note B) (Note G) of votes of total Laos................................... 100 .04 $ 10,000 $ 100 $ 900 $ - $ 9,000 350 .14 Lebanon................................ 90 .04 9,000 900 - - 8,100 340 .13 Liberia................................. 213 .09 21,300 213 13 1,904 19,170 463 .18 Libya................................... 200 .09 20,000 2,000 - - 18,000 450 .18 Luxembourg............................ 200 .09 20,000 200 1,800 - 18,000 450 .18 Malagasy Republic...................... 200 .09 20,000 200 30 1,770 18,000 450 .18 Malawi................................. 150 .07 15,000 150 14 1,336 13,500 400 .16 Malaysia .............. ................. 1,333 .58 133,300 1,333 7,500 4,497 119,970 1,583 .62 Mali.... ...........73................ 173 .08 17,300 173 1,557 - 15,570 423 .17 Mauritania.............................. 100 .04 10,000 100 19 881 9,000 350 .14 Mexico................................. 2,080 .91 208,000 2,080 18,720 - 187,200 2,330 .91 Morocco................................ 960 .42 96,000 960 99 8,541 86,400 1,210 .47 Nepal.................................. 100 .04 10,000 100 9 891 9,000 350 .14 Netherlands............................ 5,500 2.41 550,000 5,500 49,500 - 495,000 5,750 2.25 New Zealand........................... 1,667 .73 166,700 1,667 150 14,853 150,030 1,917 .75 Nicaragua.............................. 80 .03 8,000 350 450 - 7,200 330 .13 Niger................................... 100 .04 10,000 100 19 881 9,000 350 .14 Nigeria................................. 667 .29 66,700 667 256 5,747 60,030 917 .36 Norway1. .0. .0. . ..... . 1,600 .70 160,000 1,600 14,400 - 144,000 1,850 .72 Pakistan ................................ 2,000 .88 200,000 2,000 2,049 15,951 180,000 2,250 .88 Panama................................ 90 .04 9,000 126 - 774 8,100 340 .13 Paraguay............................... 60 .03 6,000 60 540 - 5,400 310 .12 Peru ) 3................................. 350 .15 35,000 3,500 - - 31,500 600 .23 Philippines( ) ........................... 1,000 .44 100,000 3,700 6,300 - 90,000 1,250 .49 Portugal................................ 800 .35 80,000 800 2,890 4,310 72,000 1,050 .41 Rwanda................................ 150 .07 15,000 150 1,350 - 13,500 400 .16 Saudi Arabia........................... 960 .42 96,000 960 22 8,618 86,400 1,210 .47 Senegal................................ 333 .15 33,300 333 30 2,967 29,970 583 .23 Sierra Leone............................ 150 .07 15,000 150 14 1,336 13,500 400 .16 Singapore.............................. 320 .14 32,000 320 576 2,304 28,800 570 .22 Somalia................................ 150 .07 15,000 150 14 1,336 13,500 400 .16 South Africaic.a., 1 33........ .......... 2,133 .93 213,300 2,133 18,012 1,185 191,970 2,383 .93 Spain.................................. 2,667 1.17 266,700 2,667 19,201 4,802 240,030 2,917 1.4 Sudan.................................. 600 .26 60,000 600 1,800 3,600 54,000 850 .33 Sweden ................................ 2,400 1.05 240,000 2,400 21,600 - 216,000 2,650 1.04 Syrian Arab Republic................... 400 .18 40,000 400 44 3,556 36,000 650 .25 Tanzania............................... 333 .15 33,300 333 57 2,940 29,970 583 .23 Thailand............................... 1,013 .44 101,300 5,078 143 4,909 91,170 1,263 .49 Togo................................... 150 .07 15,000 150 23 1,327 13,500 400 .16 Trinidad and Tobago.................... 267 .12 26,700 267 24 2,379 24,030 517 .20 Tunisia................................ 300 .13 30,000 300 74 2,626 27,000 550 .22 Turkey. . 1 ............................. 1,150 .50 115,000 1,150 271 10,079 103,500 1,400 .55 Uganda................................ 333 .15 33,300 333 50 2,947 29,970 583 .23 United Arab Republic................... 1,421 .62 142,100 1,421 119 12,670 127,890 1,671 .65 United Kingdom........................ 26,000 11.38 2,600,000 26,000 234,000 - 2,340,000 26,250 10.29 United States........................... 63,500 27.79 6,350,000 635,000 - - 5,715,000 63,750 25.00 Upper Volta............................ 100 .04 10,000 100 19 881 9,000 350 .14 Uruguay................................ 280 .12 28,000 1,225 438 1,137 25,200 530 .21 Venezuela.............................. 1,867 .82 186,700 8,537 629 9,504 168,030 2,117 .83 Viet-Nam.............................. 300 .13 30,000 300 2,700 - 27,000 550 .22 Yugoslavia.............................. 1,067 .47 106,700 6,073 4,597 - 96,030 1,317 .52 Zambia................................. 533 .23 53,300 533 48 4,749 47,970 783 .31 TOTALS ........................... 228,498 100.00 $22,849,800 $837,771 $1,074,019 $373,190 $20,564,820 254,998 100.00 MAmounts aggregating the equivalent of $2,738,000 have been received from two members on account of increases in subscriptions which are in process of completion. 46 Summary Statement of Loans Appendix D International Bank for June 30, 1967 Reconstruction and Development Expressed in United States Currency-See Notes to Financial Statements, Appendix F Effective loans held by Bank Members in whose territories loans Disbursed Undisbursed Loans not yet have been madell) portion portion()) Total (3) effective(4) Algeria........................... $ 17,510,000 $ - $ 17,510,000 $ - Argentina........................ 105,285,899 9,570,105 114,856,004 - Australia......................... 194,288,000 - 194,288,000 - Austria........................... 54,296,973 - 54,296,973 - Belgium.......................... 38,099,346 - 38,099,346 - Brazil............................ 155,598,173 221,503,114 377,101,287 - Burma........................... 21,443,780 248,954 21,692,734 - Cameroon........................ - - - 7,000,000 Ceylon........................... 28,340,671 258,285 28,598,956 - Chile............................. 77,855,568 81,154,354 159,009,922 - China............................ 26,420,386 11,455,794 37,876,180 14,400,000 Colombia......................... 250,361,243 89,094,886 339,456,129 25,000,000 Congo (Brazzaville)............... 511,815 29,488,185 30,000,000 - Costa Rica ....................... 35,555,734 1,840,442 37,396,176 - Cyprus........................... 13,603,843 1,227,157 14,831,000 2,800,000 Denmark......................... 44,418,776 - 44,418,776 - Ecuador .......................... 33,367,709 4,317,300 37,685,009 4,000,000 El Salvador....................... 28,215,305 1,099,264 29,314,569 - Ethiopia.......................... 33,795,072 10,116,092 43,911,164 - Finland.......................... 121,646,592 24,167,191 145,813,783 - France.......................... 21,377,192 - 21,377,192 - Gabon........................... 11,353,387 231,613 11,585,000 - Ghana........................... 46,462,131 437,869 46,900,000 - Guatemala ...................... 5,748,000 - 5,748,000 15,000,000 Guinea........................... 1,255,919 444,081 1,700,000 - Haiti............................. 921,000 - 921,000 - Honduras........................ 12,872,000 10,440,000 23,312,000 8,600,000 Iceland........................... 7,168,894 14,694,532 21,863,426 - India............................. 516,369,799 155,223,772 671,593,571 - Iran.............................. 112,938,477 68,458,270 181,396,747 - Iraq.............................. 3,709,891 19,290,109 23,000,000 - Israel............................ 84,936,287 4,290,192 89,226,479 - Italy.............................. 135,477,657 45,898,304 181,375,961 - Jamaica.......................... 6,592,902 40,533,629 47,126,531 - Japan............................ 543,991,717 183,896,907 727,888,624 - Kenya, Tanzania and Uganda(5) ... 14,731,178 36,268,822 51,000,000 - Lebanon......................... 21,945,000 - 21,945,000 - Liberia........................... 2,854,872 1,095,128 3,950,000 - Malaysia ...a..................... 73,596,883 93,452,111 167,048,994 10,000,000 Mexico .......................... 390,020,164 116,951,407 506,971,571 - Morocco......................... 24,992,734 32,487,326 57,480,060 - New Zealand..................... 59,450,826 36,628,642 96,079,468 - Nicaragua........................ 20,995,834 1,648,055 22,543,889 - Nigeria........................... 70,520,255 82,214,739 152,734,994 - Norway.......................... 86,325,214 9,967,808 96,293,022 - Pakistan......................... 175,420,025 142,223,279 317,643,304 13,500,000 Panama.......................... 9,193,886 445,114 9,639,000 - Paraguay......................... 147,003 6,712,997 6,860,000 - Peru............................. 104,326,558 53,516,915 157,843,473 - Philippines....................... 69,558,250 62,794,972 132,353,222 - Portugal......................... 28,714,716 27,210,035 55,924,751 - Senegal.......................... - - - 4,000,000 Sierra Leone..................... 3,392,417 167,583 3,560,000 - Singapore ........................ 7,963,790 16,021,210 23,985,000 - South Africa ..................... 24,043,412 9,684,935 33,728,347 - Spain........................... 66,662,875 68,503,537 135,166,412 - Sudan........................... 65,337,046 25,774,954 91,112,000 - Thailand......................... 117,980,828 72,531,571 190,512,399 - Trinidad and Tobago............. - 4,950,000 4,950,000 8,600,000 Tunisia.......................... 6,095,463 5,482,618 11,578,081 12,000,000 Turkey........................... 28,791,731 7,236,268 36,027,999 - United Arab Republic............. 37,500,000 - 37,500,000 - United Kingdom.................. 107,896,679 9,879,039 117,775,718 - Uruguay......................... 54,638,155 15,864,845 70,503,000 - Venezuela........................ 127,851,471 106,093,529 233,945,000 - Yugoslavia....................... 170,017,727 68,041,979 238,059,706 - Zambia.......................... - 17,500,000 17,500,000 - SUB-TOTAL MEMBERSO) ...... $4,762,755,130 $2,160,729,819 $6,923,484,949 $124,900,000 International Finance Corporation.. - 100,000,000 100,000,000 - TOTALS ....................... $4,762,755,130 $2,260,729,819 $7,023,484,949 $124,900,000 LESS: Exchange adjustments.... 21,951,686 21,951,686 $4,740,803,444 $7,001,533,263 d) 47 Summary Statement of Loans (continued) Appendix D International Bank for Reconstruction and Development Summary of Currencies Repayable on Effective Loans Held by Bank ti Loans are made (a) to the member or (b) to a political subdivision or a public or a private enterprise in the territories of the member with Currency Amount the member's guarantee. A loan has also been made to International Argentine pesos................................... $ 1,072,190 Finance Corporation. Australian dollars.................................. 68,930,377 (2) This does not include $7,529,688 of effective loans which the Bank Austrian schillings................................. 16,866,820 has agreed to sell. Of the undisbursed balance, the Bank has entered Burmeserkyant4 into irrevocable commitments to disburse $21,410,729. Canadian dollars.................................. 183,462,707 (3) Original principal amount of loans signed..... $10,670,577,893 Ceylon rupees..................................... 682,855 DEDUCT: Danish kroner..................................... 17,807,286 Deutsche mark.................................... 546,419,034 (a) Cancellations, terminations Finnish markkas................................... 9,652,510 and refundings............ $ 228,446,486 French francs..................................... 140,398,436 (b) Principal repayments to the New Ghana cedis.................................. 3,485,101 Bank...................... 1,263,131,240 Indian rupees..................................... 35,017,414 (c) Loans sold or agreed to be Iranian rials ...................................... 10,479,623 sold of which $7,529,688 has Iraqi dinars 41,8,604 not yet been disbursed..... 2,030,615,218 Irish pounds 47696474 (d) Loans not yet effective....... 124,900,000 3,647,092,944 Israel pound 3,618,297 $ 7,023,484,949 Italian fire......................................... 94,011,056 LESS: Exchange adjustments...................... 21,951,686 Japanese yen...................................... 93,794,692 Effective loans held by Bank....................... $ 7,001,533,263 Kuw aiti dinars........ ............................ 6,928,357 Luxembourg francs................................ 2,662,532 (4) Agreements providing for these loans have been signed, but the Malaysian dollars.................................. 9,219,241 loans do not become effective and disbursements thereunder do not Mexican pesos.................................... 22,856,963 start until the borrowers and guarantors, if any, take certain action and Netherlands guilders............................... 95,549,505 furnish certain documents to the Bank. The Bank has agreed to sell Norwegian kroner................................. 18,571,504 $4,585,000 of loans not yet effective and thus the total of both effective Portuguese escudos............................... 2,917,723 and non-effective loans sold or agreed to be sold is the equivalent Pounds sterling................................... 260,538,780 of $2,035,200,218. Singapore dollars ................................. 547,233 South African rand................................ 28,802,894 Loan shared by members shown. Spanish pesetas................................... 21,872,795 Sudanese pounds................................. 2,512,446 Swedish kronor.................................... 32,832,135 Sw iss francs.... ................................. 192,172,458 New Taiwan dollars................................ 3,083,145 United States dollars............................... 2,750,283,633 Venezuelan bolivares.............................. 52,007 Disbursed portion of effective loans held by Bank.... $4,762,755,130 LESS: Exchange adjustments....................... 21,951,686 $4,740,803,444 ADD: Undisbursed portion of effective loans held by Bank............................... 2,260,729,819 Effective loans held by Bank........................ $7,001,533,263 48 Funded Debt of the Bank Appendix E International Bank for June 30, 1967 Reconstruction and Development Expressed in United States Currency-See Notes to Financial Statements, Appendix F PAYABLE IN Principal Annual sinking Issue and Maturity outstanding fund requirementl United States Dollars 3% % Notes of 1961, due 1967.......................................................................... $ 22,000,000 None* 4%,% Two Year Bonds of 1965, due1967............................................................... 100,000,000 None* 4% Notes of 1962, due 1967........................................................................... 5,000,000 None* 5 %% Two Year Bonds of 1966, due 1968............................................................... 100,000,000 None* 5X % Notes of 1966, due 1968......................................................................... 16,000,000 None* 6% Two Year Bonds of 1966, due 1968................................................................. 100,000,000 None* 4 y%% Notes of 1965, due 1968-71...................................................................... 18,750,000 None* 4y8% Notes of 1966, duel968-71....................................................................... 16,000,000 None* 4 2% Twelve Year Bonds of 1960, due1968-72.......................................................... 120,000,000 None* 3%% Ten Year Bonds of 1958, due 1968................................................................ 150.000,000 None* 4y,,% Notes of 1964, due 1968-69............................. ......................................... 60,000,000 None* 3 2% Fifteen Year Bonds of 1954, due l969............................................................. 53,750,000 1968 $3,750,000 5%% Two Year Bonds of 1967, due1969............................................................... 100,000,000 None* 5 ,% Notes of 1967, due 1969-70....................................................................... 16,000,000 None* 44% Notesof 965, due 1970......................................................................... 38,000,000 None* 3% Nineteen Year Bonds of 1952, due 19719.7.10...............................................,_. 37,500,000 1968-70 $2,500,000 3% Twenty-Five Year Bonds of 1947, due 1972.......................................................... 110,935,000 1968 $5,935,000 1969-72 $7,500,000 4y% Fifteen Year Bonds of 1958, due l973............................................................. 78,335,000 1968 $3,335,000 1969-73 $5,000,000 3%% Twenty-Three Year Bonds of 1952, due 1975...................................................... 34,940,000 1968 $ 940,000 1969-74 $1,500,000 3% Twenty-Five Year Bonds of 1951, due 1976.......................................................... 40,000,000 1968 $1,000,000 1969-75 $2,000,000 4%% Twenty Year Bonds of 1957, due 1977............................................................ 69,426,000 1968 $3,750,000 1969-76 $5,000,000 4%% Fifteen Year Bonds of 1962, due l977............................................................. 5,000,000 1973-77 $1,000,000 4y,% Twenty-One Year Bonds of 1957, due 1978........................................................ 96,335,000 1967 $ 335,000 1968-71 $4,000,000 1972-77 $5,000,000 4%% Twenty-One Year Bonds of 1958, due 1979..................... .................................. 148,500,000 1968 $5,500,000 1969-77 $7,000,000 1978 $5,000,000 4% % Twenty-Three Year Bonds of 1957, due 1980(20).................................................... 59,805,000 1968-79 $3,000,000 1980 $1,500,000 34% Thirty Year Bonds of 1951, due 1981.............................................................. 96,000,000 1968-73 $3,000,000 1974-80 $4,000,000 4 2% Twenty Year Bonds of 1962, due 1982......................... .................................. 10010001000 1972-81 $5,000,000 5% Twenty-Five Year Bonds of 1960, due 1985.......................................................... 125,000,000 1970-79 $3,750,000 1980-84 $5,000,000 4y2% Twenty-Five Year Bonds of 1965, due1990........................................................ 200,000,000 1975-79 $6,000,000 1980-89 $7,000,000 5%% Twenty-Five Year Bonds of 1966, due 1991() ...................................................... 100.839,000 1977-86 $5,500,000 1987-91 $6,500,000 5%% Twenty-Five Year Bonds of 1967, due 19924) ...................................................... 90,130,000 1977-86 $8,000,000 1987-91 $9,000,000 S U B-TO TAL............................. .......................................................... $2,308,245,000 Belgian Francs 5% Ten Year Bonds of 1959, due 1969 (BF500,000,000)................................................... $ 10,000,000 None S U B -TO TALO............................. .......................................................... $ 10,000,000 Canadian Dollars 3y2% Fifteen Year Bonds of 1954, due 1969 (Can$17,199,500)............................................. $ 15,909,554 1968 Can$499,500 5y4% Twenty-Five Year Bonds of 1965, due 1990 (Can$25,000,000).2....................................... 23,125,023 1978-89 Can$500,000 5%% Twenty-Five Year Bonds of 1966, due 1991 (Can$20,000,000)0 0 ) ..................................... 18,500,018 None 64% Twenty-Five Year Bonds of 1967, due 1992 (Can$20,000,000)0 0 ..................................... 18,500,018 None S U B -TO TAL....................................................................................... $ 76,034,613 Deutsche Mark 3Y% Notes of 1961, due l967 (DM40,000,000)........................................................... $ 10,000,000 None* 54% Notes of 1966, due 1968 (DM64,000,000)0 ........................................................... 16,000,000 None* 44% Notes of 1965, due 1968-71 (DM75,000,000)........................................................ 18,750,000 None* 44% Notes of 1966, due 1968-71 (DM 64,000,000)........................................................ 16,000,000 None* 42% Bonds of 1960, due 1968-72 (DM500,000,000)....................................................... 125,000,000 None* 4 % Notes of 1964, due 1968-69 (DM160,000,000)0 0....................................................... 40,000,000 None* 4 4% Notes of 1965, due 1969-70 (DM240,000,000)0 0....................................................... 60,000,000 None* 5 % Notes of 1967, due 1969-70 (DM64,000,000)0 0........................................................ 16,000,000 None* 5% Bonds of 1959, due 1974 (DM1 40,000,000)........................................................... 35,000,000 1968-74 DM20,000,000 5Y,% Bonds of 1965, due 1985 (DM250,000,000)5) ...................................................... 62,500,000 1971-84 DM17,000,000 1985 DM12,000,000 $ 399,250,000 Less: bonds purchased) ............................................................................ 5,682,250 SU B-TO TA L........................................................................................ $ 393,567,750 (continued) 49 Funded Debt of the Bank (continued) Appendix E International Bank for Reconstruction and Development June 30, 1967 Expressed in United States Currency-See Notes to Financial Statements, Appendix F PAYABLE IN Principal Annual sinking Issue and Maturity outstanding fund requirement)) Italian Lire 5% Bonds of 1961, due 1976 (Litl5,000,000,000).......................................................... $ 24,000,000 None S U B -TO TA L ....................................................................................... $ 24,000,000 Netherlands Guilders 3y2% Fifteen Year Bonds of 1954, due 1969 (f.7,950,000)................... ............................. $ 2,196,133 1968 f.3,950,000 1969 f.4,000,000 3Y2% Twenty Year Bonds of 1955, due 1975 (f.21,320,000)................................................ 5,889,503 1968 f.2,440,000 1969-74 f.2,640,000 1975 f.3,040,000 4y% Twenty Year Bonds of 1961, due 1981 (f.50,000,000)................................................ 13,812,155 1972-81 f.5,000,000 4Y2% Twenty Year Bonds of 1962, due 1982 (f.40,000,000)................................................ 11,049,724 1973-82 f.4,000,000 S U B -T O T A L ....................................................................................... $ 32,947,515 Pounds Sterling 3y2% Twenty Year Stock of 1951, due 1971 (£ 2,842,599).................................................. $ 7,959,277 1968 £143,365 1969-71 £166,700 3 2% Twenty Year Stock of 1954, due 1974 (C3,409,846)............................................... 9,547,569 1967 £ 3,628 1968-74 £166,700 5% Twenty-Three Year Stock of 1959, due 1982 (£ 8,962,103)............................................. 25,093,888 1968 £226,158 1969-82 £278,000 S U B -T O T A L ........... ............................................................................ 42,600,734 Swiss Francs 34% Loan of 1961, due 1968 (SwF50,000,000)5) ........................................................ $ 11,634,671 None 3Y% Fifteen Year Bonds of 1953, due 1968 (SwF50,000,000)................... ......................... 11,634,671 None 3y2o Fifteen Year Bonds of 1953 (Nov. Issue), due 1968 (SwF50,000,000).................................. 11,634,671 None 5%% Notes of 1967, due 1969 (SwF33,300,000).......................................................... 7,748,691 None* 3y2% Eighteen Year Bonds of 1954, due 1972 (SwF50,000,000)..................6......................... 11,634,671 None 44% Twelve Year Bonds of 1960, due 1972 (SwF60,000,000).............................................. 13,961,606 None 4% Eleven Year Bonds of 1962, due 1973 (SwF100,000,000)............................................... 23,269,342 None 4% Fifteen Year Bonds of 1959, due 1974 (SwF100,000,000).............................................. 23,269,343 None 4% Fifteen Year Bonds of 1960, due 1975 (SwF60,000,000)............................................... 13,961,606 None 3Y2% Twenty Year Bonds of 1955, due 1976 (SwF34,000,000)............................................ 7,911,577 1969-74 SwF 4,000,000 1975-76 SwF 5,000,000 4% Eighteen Year Bonds of 1961, due 1979 (SwF100,000,000)............................................ 23,269,343 1971-78 SwF11,000,000 1979 SwF1 2,000,000 44%% Eighteen Year Bonds of 1965, due 1983 (SwF60,000,000)........................................... 13,961,605 None 5% Eighteen Year Bonds of 1967, due 1985 (SwF60,000,000)............................................. 13,961,606 1980-85 SwFl0,000,000 S U B -T O T ALO....................................................................................... $ 187,853,403 G R O S S TO T A L . ...... .............. ............................................................... $3,075,249,015 m Each issue, except those indicated with an asterisk, is subject to redemp- (2 In the case of the 4%% Twenty-Three Year Bonds of 1957, the Bank will, tion prior to maturity at the option of the Bank at the prices and upon the as a purchase fund, use its best efforts to purchase bonds of this issue in conditions stated in the respective bonds. The amounts shown as annual the open market or by acceptance of tenders at prices up to and including sinking fund requirements are the principal amounts of bonds to be pur- 100% of the principal amount plus accrued interest. The purchase fund will chased or redeemed to meet each year's requirement, except that in the be at the annual rate of $3,750,000 through 1967 and is cumulative on a cases of the 312% Twenty Year Stock of 1951 and of 1954 and the 5% Twenty- month-to-month basis only within each calendar year. In the cases of the Three Year Stock of 1959 the amount shown is the amount of funds to be pro- 54% Twenty-Five Year Canadian Dollar Bonds of 1966 and the 64% Twenty- vided annually for purchase or redemption. The amounts are shown after de- Five Year Canadian Dollar Bonds of 1967, purchase funds of Can$300,000 duction of sinking fund requirements met as of the date of this statement. each are to be provided annually starting in 1968 through 1986 and 1969 The following table shows the aggregate principal amount of the maturities through 1987 respectively. In the case of the 5125/ Deutsche Mark Bonds of and sinking fund requirements each year for the five years following the 1965 the Bank intends to support the market for these bonds whenever it date of this statement: may appear appropriate from time to time. Period Amount (3) The Bank has entered into agreements to sell additional bonds of this July 1,1967 to June 30, 1968............................. $ 472,368,289 issue in an aggregate principal amount of $74,161,000. These agreements July 1, 1968 to June 30, 1969.............................. 516,663,277 provide for the delivery of such bonds to be made against payment therefor July 1, 1969 to June 30, 1970.............................. 194,976,948 at various dates to and including January 3, 1968. July 1, 1970 to June 30, 1971.............................. 203,339,179 (4) The Bank has entered into agreements to sell additional bonds of this July 1, 1971 to June 30,1972.............................. 169,942,335 issue in an aggregate principal amount of $159,870,000. These agreements TOTAL. ......................... ............... $1,557,290,028 provide for the delivery of such bonds to be made against payment therefor at various dates to and including January 15, 1969. (5) In June 1967 the Bank entered into an agreement with the Swiss Con- federation, subject to ratification, whereby the Confederation will extend the maturity of the instalment of SwF50 million (U.S. equivalent $11.6 million) due January 1, 1968 of the 3%4% Loan of 1961. Repayment of this amount will be made in three annual instalments payable on July 1, 1968, 1969 and 1970 and interest will be payable at the rate of 5% per annum commencing on January 1, 1968. 50 Notes to Financial Statements Appendix F International Bank for Reconstruction and Development June 30, 1967 Note A Note D Amounts in currencies other than United States depreciatesto a significant extent in its territories, Amounts of commissions set aside pursuant to dollars have been translated into United States to maintain the value of the Bank's holdings of its Article IV, Section 6, as a Special Reserve to be dollars: restricted currency, including the principal amount held in liquid form and to be used only for the (i) In the cases of 76 members, at the par values of any notes substituted therefor, and the Bank is purpose of meeting liabilities of the Bank on its as specified in the "Schedule of Par Values", required, if the par value of a member's currency borrowings and guarantees. published by the International Monetary Fund; is increased, to return to the member the increase Note E (ii) In the cases of the remaining 30 members in the value of such restricted currency held by Indonesia was readmitted to membership in the [Algeria, Argentina, Bolivia, Brazil, Cameroon, the Bank. To the extent such restricted currencies Bank on April 13, 1967 and $951,119 was trans- Central African Republic, Chad, Chile, China, are out on loan, the Bank and the members are ferred to Supplemental Reserve Against Losses Colombia, Congo (Brazzaville), Democratic Re obligated to make such payments only when such on Loans and Guarantees. This represents public of Congo, Dahomey, Gabon, Guinea, restricted currencies are recovered by the Bank. Indonesia's share in the net income of the Bank Indonesia, Ivory Coast, Korea, Laos, Malagasy Some members have converted part or all of the as of the date of withdrawal which was included Republic,Mali,Mauritania,Nepal,Niger,Paraguay, Bank's holdings of their restricted currency into earlier as part of the Bank's obligation to repur- Peru, Senegal, Togo, Upper Volta and Viet-Nam], United States dollars to be used and reused as chase the shares of Indonesia. at the rates used by such members in making United States dollars in the Bank's operations, Ofthe$169,596,227 net income earned inthefiscal paymentsofcapitalsubscriptionstotheBank;and subject to the right of the Bank or the member to year ended June 30, 1967, the Executive Directors (iii) In the case of Swiss francs, non-member reverse the transactions at any time, with im- in July 1967, allocated $159,596,227 to the Supple- currency, at the rate of 4.2975 Swiss francs to mediate effect as to dollars then held by the mental Reserve Against Losses on Loans and 1 United States dollar. Bank, and, as to dollars loaned, upon repayment Guarantees and have recommended to the Board See also Notes B and C. of the loans. Such dollars while held by the Bank of Governors that an additional amount equal to No representation is made that any currency held or cn loan are not subject to the provisions of the balance of $10,000,000 be transferred by way of No eprsenatin s mde hatan cureny hld Article 11, Section 9. Such dollars held by the grant to the International Development Association. by the Bank is convertible into any other currency Bank or repayable on loans are shown in these at any rate or rates. financial statements under "United Statesdollars" Note F Note B and, where relevant, as ''unrestricted". In terms of United States dollars of the weight and These currencies of the several members, and Note C fineness in effect on July 1, 1944. the notes issued by them in substitution for any The principal disbursed and outstanding on loans Note G part of such currencies as permitted under the and the accruals for interest, commitment charge, Subject to call by the Bank only when required to provisions of Article V, Section 12, are derived service charge and loan commission are receiv- meet the obligations of the Bank created by fram the portion of the subscriptions to the capital able in United States dollars and other currencies borrowing or by guaranteeing loans. As to stock of the Bank which is payable in the curren- (for which the dollar equivalent is shown) as $18,279,840,000 the restriction on calls is imposed cies of the respective members (such portion follows: by the Articles of Agreement; as to $2,284,980,000 being hereinafter called restricted currency). Such by a resolution of the Board of Governors. restricted currencies may be loaned by the Bank, Receivable in and funds received by the Bank on account of General principal of loans made by the Bank out of such USThe Bank has opened four special interest bear- restricted currencies may be exchanged for other Principal id O istanding .... $2,750,283,633 $1,990,519,811 $4,740,803,444 ing deposit accounts with the Reserve Bank of currencies or reloaned, only with the approval in Accrued Interest, India maturing not later than March 31, 1968 and each case of the member whose restricted cur- Commitment and SereceCarsd. 42,760,795 29,816,592 72,577,387 denominated in US dollars, pounds sterling, rency is involved; provided, however, that, if Accrued Loan Deutsche mark and yen. The Bank intends begin- necessary, after the Bank's subscribed capital is commissions.... 234,104 8,306 242,410 ning August 1, 1967 to deposit in these accounts entirely called, such restricted currencies may, TOTAL.......... $2,793,278,532 $2,020,344,709 $4,813,623,241 amounts equivalent to the principal repayments without restriction by the members whose cur- received by the Bank for its own account during rencies are offered, be used or exchanged for the The dollar equivalent shown as principal out- the period April 1, 1967 to March 31, 1968 in currencies required to meet contractual pay- standing includes an amount which in accordance respect of loans made by the Bank to, or guar- ments of interest, other charges or amortization with Article II, Section 9, will be receivable from anteed by, India but not in excess of the equivalent on the Bank's own borrowings or to meet membersto maintainthevalueoftheircurrencies, of US$50 million. the Bank's liabilities with respect to contractual and is net of an amount, equal to the increase in payments on loans guaranteed by it. the value of their currencies, which in accordance Under Article 11, Section 9, each member is re- with Article II, Section 9, will be payable by the quired, if the par value of its currency is reduced Bank to members, when such currencies are or if the foreign exchange value of its currency recovered by the Bank. 51 Opinion of Independent Auditor Financial Statements Covered by the Foregoing Opinion 1707 L STREET, N.W. WASHINGTON, D.C. 20036 JULY 28, 1967 To INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT WASHINGTON, D.C. In our opinion, the accompanying financial statements present fairly, Balance Sheet...........................Appendix A (page 42) in terms of United States currency, the financial position of International Comparative Statement of Income Bank for Reconstruction and Development at June 30, 1967, and the Comp e ment of Income results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent Statement of Subscriptions to Capital with that of the preceding year. Our examination of these statements Stock and Voting Power.................Appendix C (page 45) was made in accordance with generally accepted auditing standards, and accordingly included suchtestsofthe accounting recordsand such other Summary Statement of Loans.............Appendix D (page 47) auditing procedures as we considered necessary in the circumstances. Funded Debt of the Bank.................Appendix E (page 49) Notes to Financial Statements............Appendix F (page 51) PRICE WATERHOUSE & CO. 52 Statement of Loans Signed During the Fiscal Year 1966/67 Appendix G International Bank for Reconstruction and Development Expressed in United States Currency GUARANTOR, Date of Loan Interest Principal Purpose and Borrower Agreement Maturities rate amount Brazil (Guarantor) Power-Central Eletrica de Furnas, SA .............................................. December 19, 1966 1971-91 6% $ 39,000,000 Power-Cia. Brasileira de Energia Eletrica ........................................... December 19, 1966 1972-87 6% 6,200,000 Power-Cia. Forca e Luz do Parana................................................. December 19, 1966 1972-87 6% 8,100,000 Power-Cia. Paulista de Forca e Luz................................................ December 19, 1966 1972-87 6% 41,000,000 Power-Cia. Forca e Luz de Minas Geraism.......................................... December 19, 1966 1972-87 6% 6,300,000 Cameroon (Guarantor) Agriculture-Cameroons Development Corporation.................................. March 28, 1967 1976-97 6% 7,000,000 Chile (Guarantor) Power- Endesa & Fo ento......................................................... December 23, 1966 1974-97 6% 60,000,000 China Fishing Vessels.................................................................... June 14, 1967 1970-82 6% 14,400,000 Colombia (Guarantor) Communications-Empresa Nacional de Telecomunicaciones......................... June 15, 1967 1971-87 6% 16,000,000 Agriculture-Instituto Colombiano de la Reforma Agraria ........................... June 29, 1967 1973-92 6% 9,000,000 Congo (Brazzaville) (Guarantor) Potash-Compagnie des Potasses du Congo..................... .................. January 9, 1967 1970-84 6% 30,000,000 Cyprus (Guarantor) Power-Electricity Authority of Cyprus............................................... May 16, 1967 1970-82 6% 2,800,000 Ecuador A gricultureu................................ ....................................... June 19, 1967 1973-85 6% 4,000,000 Guatemala (Guarantor) Power-Instituto Nacional de Electrificacion......................................... March 10, 1967 1971-92 6% 15,000,000 Honduras Roads ............................................................................. M ay 26, 1967 1972-87 6% 8,600,000 Honduras (Guarantor) Port-Empresa Nacional Portuaria................................................. August 25, 1966 1971-90 6% 4,800,000 Iceland (Guarantor) Power-National Power Company................................................... September 14, 1966 1971-91 6% 18,000,000 India (Guarantor) ,Steel-lndian Iron and Steel Co., Ltd................................ ............... July 7,1966 1971-84 6% 30,000,000 Iran (Guarantor) Industry-Industrial & Mining Development Bank of Iran............. ................ July 26, 1966 1969-83 Various 25,000,000 Iraq Roads... ......................................................................... July 22, 1966 1970-86 6% 23,000,000 Jamaica Education ........................................................................ Septem ber 30, 1966 1972-87 6% 9,500,000 Jamaica (Guarantor) Communications-Jamaica Telephone Co., Ltd....................................... January 23, 1967 1972-82 6% 11,200,000 Japan (Guarantor) Roads-Nihon Doro Kodan......................................................... July 29, 1966 1969-81 6%% 100,000,000 Kenya, Tanzania and Uganda (Guarantor) Communications-East African Common Services Authority.......................... February 17, 1967 1971-91 6% 13,000,000 Malaysia Irrigation .......................................................................... June 15, 1967 1972-92 6% 10,000,000 (continued) 53 Statement of Loans Signed During the Fiscal Year 1966/67 (continued) Appendix G International Bank for Reconstruction and Development Expressed in United States Currency GUARANTOR, Date of Loan Interest Principal Purpose and Borrower Agreement Maturities rate amount Malaysia (Guarantor) Power-National Electricity Board of the States of Malaya............................ July 26, 1966 1970-86 6% $ 37,000,000 Nicaragua (Guarantor) Power-Empresa Nacional de Luz y Fuerza.......................................... October 5, 1966 1969-86 6% 5,000,000 Pakistan Railw aysy......... ................................................................ M ay 26, 1967 1971-92 6% 13,500,000 Pakistan (Guarantor) Power-Karachi Electric Supply Corporation Ltd...................................... March 15, 1967 1970-87 6% 21,500,000 Peru (Guarantor) Power-Empresas Electricas Asociadas............................................. September 7, 1966 1969-86 6% 10,000,000 Philippines (Guarantor) - Industry-Philippine National Bank.................................................. September 23, 1966 1968-84 Various 25,000,000 Power-National Power Corporation................................................. April 5, 1967 1970-87 6% 12,000,000 Senegal (Guarantor) Port-Port Autonome de Dakar..................................................... May 1, 1967 1970-82 6% 4,000,000 Singapore (Guarantor) Port-The Port of Singapore Authority............................................... August 11, 1966 1971-91 6% 15,000,000 Power-Pubic Utilities Board,Singapore ................................... November 4, 1966 1968-87 6% 10,000,000 South Africa (Guarantor) Power-Electricity Supply Commission............................................. September 8, 1966 1968-76 64% 20,000,000 Thailand Education O................................................ ........................ O ctober 19, 1966 1976-96 6% 6,000,000 Thailand (Guarantor) Power-Yanhee Electricity Authority................................................ March 24, 1967 1970-82 6% 5,000,000 Trinidad and Tobago A griculture ........................................................................ M arch 10, 1967 1972-90 6% 5,000,000 Roads ....... ..................................................................... June 12, 1967 1972-92 6% 8,600,000 Tunisia A gricultureu...........l....................................................... February 21, 1967 1972-85 6% 12,000,000 Turkey (Guarantor) Industry-Industrial Development Bank of Turkey................................... August 10, 1966 1968-83 Various 10,000,000 United Kingdom (Guarantor) Power- Sw aziland .................................................................. A pril 24, 1967 1971-87 6% 2,750,000 Venezuela (Guarantor) Power-C.V.G. Electrificacion del Caroni C.A......................................... January 26, 1967 1970-87 6% 15,000,000 Yugoslavia (Guarantor) Roads-Yugoslav Investment Bank.................................................. February 24, 1967 1972-87 6% 10,000,000 Zambia Roads O 41................................................................. ........ O ctober 4, 1966 1970-86 6% 17,500,000 $776,750,000 International Finance Corporation................................................... October 28, 1966 1969-81 Various 100,000,000 T O T AL . . . . . . . ...................................................................... .......................................... $ 8 76 ,750 ,0 00 54 IDA Appendices Page A Statem ent ofCondition........................................ 56 B Comparative Statement of Income and Expenses................ 57 C Statement of Holdings of Currencies and Obligations............ 58 D Summary Statement of Development Credits ................ 60 E Statement of Subscriptions, Voting Power and Supplem entary Resources.................................... 61 F Notes to Financial Statem ents.................................. 63 OPINION OF INDEPENDENT AUDITOR.................................. 64 55 Statement of Condition Appendix A international Development Association June 30, 1967 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Assets DUE FROM BANKS AND OTHER DEPOSITORIES (See Appendix C) Member currencies U nrestricted ............................................................... $ 26,711,285 Subject to restrictions- Note B.............................................. 54,676,314 $ 81,387,599 INVESTMENTS Government obligations (At cost or amortized cost) Face amount $34,344,000 including $29,850,000 obligations of United States Government and its Instrumentalities.......................... $ 33,895,184 A ccrued interest............................................................ 206,085 34,101,269 RECEIVABLE ON ACCOUNT OF SUBSCRIPTIONS (See Appendix C) Non-negotiable, non-interest-bearing, demand obligations U nrestricted ................................................... ........... $ 260,000 Subject to restrictions- Note B............................................. 166,148,058 166,408,058 RECEIVABLE ON ACCOUNT OF SUPPLEMENTARY RESOURCES (See Appendix C) Non-negotiable, non-interest-bearing, demand obligations U nrestrictedt.................... .......................................... 331,576,933 RECEIVABLE FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT- Note D ...................................................... 92,300,000 EFFECTIVE DEVELOPMENT CREDITS HELD BY ASSOCIATION (Including undisbursed balance of $640,484,872) (See Appendix D)-Note E............... 1,664,163,141 ACCRUED SERVICE CHARGE ON DEVELOPMENT CREDITS-Note E.................. 2,177,342 TO TAL ..........3.......................................................... 2,372,114,342 Liabilities, Subscriptions, Supplementary Resources, Transfers and Accumulated Net Income LIABILITIES Accounts payable and other liabilities........................................ $ 500,074 Undisbursed balance of effective development credits (See Appendix D)....... 640,484,872 SUBSCRIPTIONS (See Appendix E)-Note F A m ounts subscribed........................................................ $999,955,000 Less portion for which payment is not yet due-Note G....................... 2,875,000 997,080,000 SUPPLEMENTARY RESOURCES (See Appendix E)-Note F......................... $767,870,000 Less portion for which payment is not yet due-Note H....................... 248,245,000 519,625,000 TRANSFERS FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT- Note D . .................................................... 200,000,000 ACCUMULATED NET INCOME A t June 30, 1966............................................................ $ 9,814,612 The period from July 1, 1966 to June 30,1967.................................. 4,609,784 14,424,396 TO TA L..................................................................... $ 2,372,114,342 56 Comparative Statement of Income and Expenses Appendix B International Development Association For the Fiscal Years Ended June 30, 1966 and June 30, 1967 Expressed in United States Currency-See Notes to Financial Statements, Appendix F July 1-June 30 1965/1966 1966/1967 Income Income from investments.......................................... $2,336,536 $2,557,348 Income from development credits.................................. 4,115,676 6,268,489 GROSS INCOME.................................................. $6,452,212 $8,825,837 Expenses Administrative expenses: Personal services................................................. $2,044,829 $2,528,277 Contributions to staff benefits..................................... 294,750 383,757 Fees and com pensation........................................... 109,446 109,199 R epresentation.............. .................................... 1,886 2,725 T ravell ......... ................................................. 432,764 517,715 Supplies and m aterial............................................ 31,557 44,437 Office occupancy................................................. 212,220 297,075 Com m unication services.......................................... 115,289 168,898 Furniture and equipm ent......................................... 70,739 107,507 P rinting .......................................................... 22,463 31,189 Insurance ........................................................ 22,106 25,282 TOTAL ADMINISTRATIVE EXPENSES................................ $3,358,049 $4,216,061 Exchange adjustm ents............................................. 344 (8) GROSS EXPENSES................................................ $3,358,393 $4,216,053 Net Incom e ....................................................... $3,093,819 $4,609,784 Note-The administrative expenses include certain expenses allocated by the International Bank for Reconstruction and Development to the Association. Effective July 1, 1967 the Bank will charge the Association an annual "Management Fee" which for the year endin June 30, 1968 is to be equal to the expenses for fiscal year 1967. 57 Statement of Holdings of Currencies and Obligations June 30, 1967 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Non-negotiable, non-interest- bearing, demand obligations on account of Unit of Initial Supplementary Member Currency Currency Subscriptions Resources Total Afghanistan.................._.Afghani............................. $ 606,000 $ 303,000 $ - $ 909,000 A lgeria ..........................D inar............. ................. - 3,627,000 - 3,627,000 A rgentina.......................Peso................................ - 16,947,000 - 16,947,000 A ustraliaa........................Dollar.... .......................... - - 10,106,800 10,106,800 A ustria..........................Schilling ............................ - - 2,583,846 2,583,846 Belgium.u........u_ _Fra.......Franc.. .... . __......... .... - 260,000 5,500,000 5,760,000 Bolivia ..........................Peso Boliviano....................... - 954,000 - 954,000 Brazil ...........................New Cruzeiro........................ 16,947,000 - - 16,947,000 Burm a ..........................Kyat................................ - 1,818,000 - 1,818,000 Burundi .........................Franc ..............................- 684,000 - 684,000 Cam eroon.......................Franc............................... - 909,000 - 909,000 Canada.........................Dollar............................... 3,237,503 - 17,600,004 20,837,507 Central African Republic.........Franc............................... - 450,000 - 450,000 C eylon ..........................Rupee..............................n- 2,727,000 - 2,727,000 Chad ...........................Franc .............................. - 450,000 - 450,000 C hile ............................Escudo .............................. 3,177,000 - - 3,177,000 China...........................New Taiwan Dollar.................. - 27,234,000 - 27,234,000 Colom bia ........................ Peso ...................... ......... 3,177,000 - 3,177,000 Congo (Brazzaville)..............Franc............................... - 450,000 - 450,000 Congo, Democratic Republic of...Franc............................... 2,718,000 - - 2,718,000 Costa Rica......................Colon............................... 180,000 - - 180,000 Cyprus ..........................Pound ............................. - 684,000 - 684,000 Dahom ey........................Franc............................... 450,000 - 450,000 Denmr ark........................Krone............................... - - 4,063,599 4,063,599 Dom inican Republic.............Peso............. .................. 360,000 - - 360,000 Ecuador ........................Sucre............................... 585,000 - - 585,000 El Salvador......................Colon............................... 270,000 - - 270,000 Ethiopia.........................Dolar............................... - 450,000 - 450,000' Finland .........................M arkka............................. 1,383,558 - - 1,383,558 France..........................Franc............................... 369,247 - 29,369,706 29,738,953 Gabon..........................Franc............................... - 450,000 - 450,000 Germany, Federal Republic of.....Deutsche Mark...................... 9,748,000 - - 9,748,000 Ghana..........................New Cedi........................... - 2,124,000 - 2,124,000 Greece..........................Drach na............................ 2,268,000 - - 2,268,000 Guatemalam ......................Q uetzal......... ................... 360,000 - - 360,000 G uyana.........................Dollar............................... 5,668 723,332 - 729,000 H aiti............................Gourde.............................. - 684,000 - 684,000 Honduras.......................Lem pira...... ...................... 270,000 - - 270,000 India............................Rupee.............................. 57,721 36,257,333 - 36,315,054 Iran .............................R ial................................. - 4,086,000 - 4,086,000 Iraq .............................D inar............................... - 684,000 - 684,000 Ireland..........................Pound .............................. - 1,636,200 - 1,636,200 Israel...........................Pound .............................. - 604,800 - 604,800 Ivory Coast......................Franc............................... - 909,000 - 909,000 Japann ...........................Yen......... ....................... 98,962 - 20,694,444 20,793,406 Jordan ..........................D inar............................... - 162,000 - 162,000 K enya ..........................Shilling ............................. - 1,512,000 - 1,512,000 K orea ...........................W on ................................ 1,133,960 - 1,133,960 K uw ait..........................D inar............................... - - 1,731,800 1,731,800 Laos............................K ip................................. 210,000 240,000 - 450,000 58 Appendix C International Development Association Non-negotiable, non-interest- bearing, demand obligations on account of Unit of Initial Supplementary Member Currency Currency Subscriptions Resources Total Lebanon........................Pound.............................. $ 405,000 $ - $ - $ 405,000 Liberia ........................ D ollar ..................... ......... - 684,000 - 684,000 Libya ...........................Pound .............................. - 909,000 - 909,000 M alagasy Republic..............Franc .............................. 181,800 727,200 - 909,000 M alaw ........................ Pound.............................. - 684,000 - 684,000 M alaysia ........................Dollar............................... - 2,268,000 - 2,268,000 M ali............................Franc ..................... ......... 783,000 - - 783,000 M auritania ......................Franc......................... . - 450,000 - 450,000 M exico .... .....................Peso ................................ 7,670,287 - - 7,670,287 M orocco ........................Dirham ............................. - 3,177,000 - 3,177,000 N epal...........................R upee ..............................l- 450,000 - 450,000 N etherlands ....................G uilder. . .......................... . - - 10,171,271 10,171,271 Nicaragua......................Cordoba............................ 270,000 - - 270,000 N iger ...........................Franc ....... ....................... - 450,000 - 450,000 Nigeria ..........................iPound .................. ...... - 3,024,000 - 3,024,000 Norw ay.........................Krone............................... - - 3,405,999 3,405,999 Pakistan ........................tRupee..... .................... - 9,081,000 - 9,081,000 Panamaa ............8............Balboa ...... ....................... 3,598 - - 3,598 Paraguayu ........................G uarani ........................... 270,000 - - 270,000 Peru ............................S ol................................. - 1,593,000 - 1,593,000 Philippines......................Peso................................ - 4,536,000 - 4,536,000 Rw anda .........................Franc....... ....................... 684,000 - - 684,000 SaudiA rabia....................Riyal........... .................... - 3,330,000 - 3,330,000 Senegal .........................Franc........ _ .................... - 1,512,000 - 1,512,000 Sierra Leone....................Leone............................... - 684,000 - 684,000 Soma ia.........................Shilling................ ............ - 684,000 - 684,000 South Africa....................Rand............................... 2,976,315 - - 2,976,315 Spain ...........................Peseta.............. ............... 6,746,273 1,816,200 - 8,562,473 Sudan..........................Pound.............................. - 909,000 - 909,000 Sweden .........................Krona........... ................... - - 14,149,464 14,149,464 Syrian Arab Republic............Pound................. ............ 342,000 513,000 - 855,000 Tanzania ........................aShilling....................... - 1,512,000 - 1,512,000 Thailand........................Baht ................. .............. - 2,727,000 - 2,727,000 Togo............................Franc............................... 7 683,993 - 684,000 Tunisia .........................D inar ................ .............. - 1,359,000 - 1,359,000 Turkey ....................... . Lira ,. ............................... - 5,220,000 - 5,220,000 U ganda .........................S hilling ............................. - 1,512,000 - 1,512,000 United Arab Republic............Pound.............................. - 4,572,000 - 4,572,000 United Kingdom .................Pound.............................. 8,344,909 - 46,200,000 54,544,909 United States....................Dollar............................... 552,791 - 166,000,000 166,552,791 Upper Volta.....................Franc............................... - 450,000 - 450,000 Viet-Nam ........................Piastre.............................. 1,359,000 - - 1,359,000 Yugoslavia......................Dinar............................... 3,636,000 - - 3,636,000 Zam bia .........................Pound ............................. - 2,421,000 - 2,421,000 TOTALS.................................................... ..... $81,387,599 $166,408,058 $331,576,933 $579,372,590 (1) (1)Of this amount the equikalent of $358,548,218 is unrestricted and the equivalent of $578,944,777 is subject to maintenance of value-Note C. 59 Summary Statement of Development Credits Appendix D International Development Association June 30, 1967 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Effective development credits held by Association Development Disbursed Undisbursed credits not yet Member in whose territories development credits have been made (1) portion portion (2) Total effective (3) Afghanistan......n............. ................... $ 15,438 $ 3,484,562 $ 3,500,000 $ - Bolivia ........... .............................................................. 12,920,287 2,079,713 15,000,000 2,000,000 B urundi........................................................................ 44,916 1,055,084 1,100,000 - Cam eroon................ ..................................................... - - - 11,000,000 C hile .......................................................................... 12,86 ,607 6,131,393 19,000,000 - C hina ............................................................... .......... 13,083,716 - 13,083,716 - Colom bia....................................................................... 17,105,140 2,394,860 19,500,000 - Costa Rica..................... ................................................ 3,457,369 1,192,631 4,650,000 - Ecuador........................................................................ 109,783 7,890,217 8,000,000 - El Salvador..................................................................... 6,350,044 1,649,956 8,000,000 - Ethiopia ........................................................................ 10,492,849 10,207,151 20,700,000 - H aiti........................................................................... 349,855 - 349,855 - Honduras....................................................................... 8,749,838 3,350,162 12,100,000 - India ........................................................................... 662,462,983 226,681,097 889,144,080 - Jordan ......................................................................... 6,023,902 991,601 7,015,503 3,000,000 Kenya .............................................. ........................... 5,491,056 20,708,944 26,200,000 - K orea 1.......................................................................... 13,992,924 - 13,992,924 M alagasy Republicpi............................................................ - 10,000,000 10,000,000 - M alaw ......................................................................... 321,230 168,770 490,000 6,300,000 M ali. ........................................................ .................. 946,532 8,153,468 9,100,000 - M auritaniai...................................................................... 251,311 6,448,689 6,700,000 M orocco........................................................................ - 11,000,000 11,000,000 N icaragua...................................................................... 2,994,834 - 2,994,834 N iger 1........................................................................... 174,034 1,325,966 1,500,000 N igeriai ......................................................................... 6,329,260 29,170,740 35,500,000 Pakistan ........................................................................ 151,822,342 177,403,306 329,225,648 1,750,00 Paraguayu.8 , 468.6.66........................................................ 8,468,661 8,631,339 17,100,000 - S enegal........................................................................ 940,389 8,059,611 9,000,000 - Som alia ........................................................................ - 6,200,000 6,200,000 - Sudan ............................. ............................................ 11,077,847 1,922,153 13,000,000 - Syrian Arab Republic........................................................... 360,622 8,139,378 8,500,000 - Tanzania ....................................................................... 9,878,908 13,721,092 23,600,000 - Tunisia ......................................................................... 5,451,206 12,411,392 17,862,598 6,000,000 Turkey......................................................................... 44,289,776 36,264,207 80,553,983 - U ganda........................................................................ - 10,000,000 10,000,000 - United Kingdom: Botsw ana...................................................................... 2,798,043 801,957 3,600,000 - Lesotho ........................................................................ 1,254,567 2,845,433 4,100,000 - Sw aziland ..................................................................... 2,800,000 - 2,800,000 - TOTALS...................................................................... $1,023,678,269 $640,484,872 $1,664,163,141 $30,050,000 O)All development credits have been made to member governments or to the government of a territory of a member. (0)Of the undisbursed balance the Association has entered into irrevocable commitments to disburse $1,777,618. (3)Agreements providing for these development credits have been signed, but the development credits do not become effective and disbursements thereunder do not start until the borrower takes certain action and furnishes certain documents to the Association. 60 Statement of Subscriptions, Voting Power and Supplementary Resources Appendix E International Development Association June 30, 1967 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Supplementary Total Subscriptionse) Voting Power Resources tota Subscriptions Amounts and Total Amounts not yet Supple- (Notes C Percent Number Percent paid in due mentary Member(2) and F) of total of votes of total (Note C) (Note H) Resources Australia....................................... $ 20,180,000 2.02 4,536 1.83 $ 13,200,000 $ 6,600,000 $ 39,980,000 Austria ......................................... 5,040,000 .50 1,508 .61 3,360,000 1,680,000 10,080,000 Belgium ......................................... 8,250,000 .83 2,150 .87 5,500,000 2,750,000 16,500,000 Canada......................................... 37,830,000 3.78 8,066 3.25 27,800,000 13,900,000 79,530,000 Denmark........................................ 8,740,000 .87 2,248 .90 5,000,000 2,500,000 16,240,000 Finland.......................................... 3,830,000 .38 1,266 .51 1,532,000 766,000 6,128,000 France.......................................... 52,960,000 5.30 11,092 4.46 41,248,000 20,624,000 114,832,000 Germany, Federal Republic of .................... 52,960,000 5.30 11,092 4.46 48,400,000 24,200,000 125,560,000 Italy ............................................. 18,160,000 1.82 4,132 1.66 20,000,000 10,000,000 48,160,000 Japan........................................... 33,590,000 3.36 7,218 2.91 27,500,000 13,750,000 74,840,000 Kuwait.......................................... 3,360,000 .34 1,172 .47 2,240,000 1,120,000 6,720,000 Luxembourg..................................... 375,000 .04 575 .23 250,000 125,000 750,000 Netherlands..................................... 27,740,000 2.77 6,048 2.43 11,000,000 5,500,000 44,240,000 Norway .......................................... 6,720,000 .67 1,844 .74 4,400,000 2,200,000 13,320,000 South Africa..................................... 10,090,000 1.01 2,518 1.01 2,660,000 1,330,000 14,080,000 Sweden ............. ........................... 10,090,000 1.01 2,518 1.01 33,135,000 5,000,000 48,225,000 United Kingdom................................. 131,140,000 13.11 26,728 10.76 64,400,000 32,200,000 227,740,000 United States .................................... 320,290,000 32.03 64,558 25.98 208,000,000 104,000,000 632,290,000 TOTAL PART I MEMBERS ......................... $751,345,000 75.14 159,269 64.09 $519,625,000 $248,245,000 $1,519,215,000 Afghanistan..................................... $ 1,010,000 .10 702 .28 $ - $ - $ 1,010,000 Algeria.......................................... 4,030,000 .40 1,306 .53 - - 4,030,000 Argentina............... ....................... 18,830,000 1.88 4,266 1.72 - - 18,830,000 Bolivia.......................................... 1,060,000 .11 712 .29 - - 1,060,000 Brazil........................................... 18,830,000 1.88 4,266 1.72 - - 18,830,000 BuPma........... .............................. 2,020,000 .20 904 .36 - - 2,020,000 Burundi......................................... 760,000 .08 652 .26 - - 760,000 Cameroon........ .............................. 1,010,000 .10 702 .28 - - 1,010,000 Cer4tral African Republic......................... 500,000 .05 600 .24 - - 500,000 Ceylon.......................................... 3,030,000 .30 1,106 .45 - - 3,030,000 Chad............................................ 500,000 .05 600 .24 - - 500,000 Chile............................................ 3,530,000 .35 1,206 .49 - - 3,530,000 China........................................... 30,260,000 3.03 6,552 2.64 - - 30,260,000 Colombia........................................ 3,530,000 .35 1,206 .49 - - 3,530,000 Congo (Brazzaville).............................. 500,000 .05 600 .24 - - 500,000 Congo, Democratic Republic of ................... 3,020,000 .30 1,104 .44 - - 3,020,000 Costa Rica..................................... 200,000 .02 540 .22 - - 200,000 Cyprus.......................................... 760,000 .08 652 .26 - - 760,000 Dahomey........................................ 500,000 .05 600 .24 - - 500,000 Dominican Republic............................. 400,000 .04 580 .23 - - 400,000 Ecuador......................................... 650,000 .06 630 .25 - - 650,000 El Salvador...................................... 300,000 .03 560 .23 - - 300,000 Ethiopia......................................... 500,000 .05 600 .24 - - 500,000 Gabon........................................... 500,000 .05 600 .24 - - 500,000 Ghana........................................... 2,360,000 .24 972 .39 - - 2,360,000 Greece......................................... 2,520,000 .25 1,004 :40 - - 2,520,000 Guatemala....................................... 400,00 .04 580 .23 - - 400,000 (continued) 61 Statement of Subscriptions, Voting Power and Supplementary Resources (contnued) Appendix E International Development Association June 30, 1967 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Supplementary Subscriptons( Voting Power Resources Totl Subscriptions Amounts and Total Amounts not yet Supple- (Notes C Percent Number Percent paid in due mentary Member and F) of total of votes of total (Note C) (Note H) Resources Guyana.......................................... $ 810,000 .08 662 .27 $ - $ - $ 810,000 Haiti............................................ 760,000 .08 652 .26 - - 760,000 Honduras....................................... 300,000 .03 560 .23 - - 300,000 Iceland ......................................... 100,000 .01 520 .21 - - 100,000 India .................... ...................... 40,350,000 4.03 8,570 3.45 - - 40,350,000 Iran............................................ 4,540,000 .45 1,408 .57 - - 4,540,000 Iraq ............................................. 760,000 .08 652 .26 - - 760,000 Ireland0........................................ 3,030,000 .30 1,106 .45 - - 3,030,000 Israel............................................ 1,680,000 .17 836 .34 - - 1,680,000 Ivory Coast...................................... 1,010,000 .10 702 .28 - - 1,010,000 Jordan.......................................... 300,000 .03 560 .23 - - 300,000 Kenya ....................................... _ 1,680,000 .17 836 .34 - - 1,680,000 Korea........................................... 1,260,000 .13 752 .30 - - 1,260,000 Laos ........................................... 500,000 .05 600 .24 - - 500,000 Lebanon......................................... 450,000 .04 590 .24 - - 450,000 Liberia.................... ..................... 760,000 .08 652 .26 - - 760,000 Libya .......................................... . 1,010,000 .10 702 .28 - - 1,010,000 Malagasy Republic............................... 1,010,000 .10 702 .28 - - 1,010,000 M alaw i.......................................... 760,000 .08 652 .26 - - 760,000 Malaysia........................................ 2,520,000 .25 1,004 .40 - - 2,520,000 Mal .................. 870,000 .09 674 .27 - - 870,000 Mauritania ...................................... 500,000 .05 600 .24 - - 500,000 M exico .......................................... 8,740,000 .87 2,248 .90 - - 8,740,000 Morocco ......................................... 3,530,000 .35 1,206 .49 - - 3,530,000 Nepal........................................... 500,000 .05 600 .24 - - 500,000 Nicaragua....................................... 300,000 .03 560 .23 - - 300,000 Niger ........................... ........... 500,000 .05 600 .24 - - 500,000 Nigeria... ....... _ ... 3,360,000 .34 1,172 .47 - - 3,360,000 Pakistan ........................................ 10,090,000 1.01 2,518 1.01 - - 10,090,000 Panam a ........................................ 20,000 (3 504 .20 - - 20,000 Paraguay........................................ 300,000 .03 560 .23 - - 300,000 Peru............................................ 1,770,000 .18 854 .34 - - 1,770,000 Philippines ...................................... 5,040,000 .50 1,508 .61 - - 5,040,000 Rwanda ........................................ 760,000 .08 652 .26 - - 760,000 Saudi Arabia ................................... 3,700,000 .37 1,240 .50 - - 3,700,000 Senegal ..................... ................... 1,680,000 .17 836 .34 - - 1,680,0100 Sierra Leone..................................... 760,000 .08 652 .26 - - 760,000 Soma ia0.......... .............................. 760,000 .08 652 .26 - - 760,000 Spain . ......................................... 10,090,000 1.01 2,518 1.01 - - 10,090,000 Sudan. .0........................ ............... 1,010,000 .10 702 .28 - - 1,010,000 Syrian Arab Republic............................ 950,000 .09 690 .28 - - 950,000 Tanzania...... ................................. 1,680,000 .17 836 .34 - - 1,680,000 Thaland........................................ 3,030,000 .30 1,106 .45 - - 3,030,000 Togo............................................ 760,000 .08 652 .26 - - 760,000 Tunisia .......................................... 1,510,000 .15 802 .32 - - 1,510,000 Turkey.......................................... 5,800,000 .58 1,660 .67 - - 5,800,000 Uganda......................................... 1,680,000 .17 836 .34 - - 1,680,000 United Arab Republic............................ 5,080,000 .51 1,516 .61 - - 5,080,000 Upper Volta..................................... 500,000 .05 600 .24 - - 500,000 Viet-Nam ........................................ 1,510,000 .15 802 .32 - - 1,510,000 Yugoslavia...................................... 4,040,000 .40 1,308 .53 - - 4,040,000 Zam bia.......................................... 2,690,000 .27 1,038 .42 - - 2,690,000 TOTAL PART II MEMBERS-Note B ................ $248,610,000 24.86 89,222 35.91 $ - $ - $ 248,610,000 GRAND TOTALS................................. $999,955,000 100.00 248,491 100.00 $519,625,000 $248,245,000 $1,767,825,000 (D) Paid in full except Belgium and Luxembourg-Note G. (2) Members whose subscriptions may be freely used or exchanged by the Association and who have participated in the replenishment of the Association's resources are included in Part 1. All other members are included in Part II. (3) Less than .005 percent. 62 Notes to Financial Statements Appendix F International Development Association June 30, 1967 Note A have been initially disbursed or exchanged for General Amounts in currencies other than United States the currency of another member. In June 1967, the Association entered into an dollars have been translated into United States Supplementary resources of the Association have, agreement with the Swiss Confederation, subject dollars: by agreement, the same respective rights and to ratification, whereby the Confederation will (i) in the cases of 69 members, at the par values obligations as to maintenance of value as are set lend SwF52 million (approximately U.S. equiv- as specified in the "Schedule of Par Values', forth in Article IV, Section 2, of the Articles of alent $12.1 million) to the Association. Under the published by the International Monetary Fund; the Association. agreement the proceeds will be made available (ii) In the cases of the remaining 28 members in three equal instalments on July 1 of the years [Algeria, Argentina, Bolivia, Brazil, Cameroon, Note D 1968,1969 and 1970. The loan will carry no interest Central African Republic, Chad, Chile, China, The International Bank for Reconstruction and and will be repayable in forty annual instalments Colombia, Congo (Brazzaville), Democratic Re- Development has authorized transfers, by way of beginning July 1, 1979. The first ten instalments public of Congo, Dahomey, Gabon, Ivory Coast, grants, to the Association totaling $200,000,000 will be at 1% each of the principal amount and Korea, Laos, Malagasy Republic, Mali, Mau- from the net income of the Bank for the fiscal the remaining thirty instalments will be at 3% of ritania, Nepal, Niger, Paraguay, Peru, Senegal, years ended June 30, 1964, 1965 and 1966. Of this such principal amount. Togo, Upper Volta and Viet-Nam], at the rates amount, $107,700,000 has been received as of used by such members in making payments of June 30, 1967. subscriptions to the Association. Note E Note B The principal disbursed and outstanding on devel- Pursuant to Article IV, Section I (a), these amounts opment credits and the accrued service charge may be used by the Association for administrative are expressed in terms of United States dollars expenses incurred by the Association in the terri- of the weight and fineness in effect on January 1, tories of any member whose currency is involved 1960 and the equivalent is payable by the bor- and, insofar as consistent with sound monetary rowers in currencies which the Association policies, in payment for goods and services pro- determines to be freely convertible or freely duced in the territories of such member and exchangeable by the Association for currencies required for projects financed by the Association of other members of the Association, except that and located in such territories; and in addition such amount would be reduced if (a) there is a when and to the extent justified by the economic uniform proportionate reduction in the par values and financial situation of the member concerned of the currencies of all members of the Inter- as.determined by agreement between the mem- national Monetary Fund or (b) the Association ber and the Association, such currency shall be so decides because of a substantial reduction in freely convertible or otherwise usable for projects the value of one or more major currencies of financed by the Association and located outside members. The foregoing does not apply to a the territories of the member. credit of $9,000,000 which is expressed and is Note C repayable in legal tender dollars, Under Article IV, Section 2, each member is Note F required, if the par value of its currency is reduced or the foreign exchange value of its currency has Subscriptions and supplementary resources are in the opinion of the Association depreciated to expressed in terms of United States dollars of tne a significant extent within that member's terri- weight and fineness in effect on January 1, 1960. tories, to maintain the value of the Association's Note G holdings of its ninety percent currency, including This portion of the subscriptions of members, the principal amount of any notes substituted being that of Belgium and Luxembourg, is due therefor, and the Association is required if the on or before November 8, 1967 and is payable in par value of the member's currency is increased, gold or freely convertible currency. or the foreign exchange value of the member's currency has in the opinion of the Association Note H appreciated to a significant extent within that These supplementary resources are to be paid member's territories, to return to the member the in freely convertible currencies on or before increase in the value of such ninety percent November 8, 1967. In addition, Sweden has currency held by the Association; provided, how- made a further contribution equivalent to ever, that the foregoing shall apply only so long $5,000,000 which will be paid to the Association as and to the extent that such currency shall not in August 1967. 63 Opinion of Independent Auditor Financial Statements Covered by the Foregoing Opinion 1707 L STREET, N.W. WASHINGTON, D.C. 20036 JULY 28, 1967 To INTERNATIONAL DEVELOPMENT ASSOCIATION WASHINGTON, D.C. In our opinion, the accompanying financial statements present fairly, Statement of Condition..................Appendix A (page 56) in terms of United States currency, the financial position of international Comparative Statement of Income Development Association at June 30, 1967, and the results of its opera- and Expenses.Appendix B (page 57) tions for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the pre- Statement of Holdings of Currencies ceding year. Our examination of these statements was made in accord- and Obligations........................Appendix C (page 58) ance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing Summary Statement of Development procedures as we considered necessary in the circumstances. Credits................................Appendix D (page 60) Statement of Subscriptions, Voting Power PRICE WATERHOUSE & CO. and Supplementary Resources..........Appendix E (page 61) Notes to Financial Statements............Appendix F (page 63) 64 Bank/IDA Appendices Page 1 Bank Loans and IDA Credits Classified by Purpose and Area....................66 2 Bank Loans and IDA Credits by Country........................................68 3 Administrative Budgets of the Bank and IDA...................................70 4 Governors and Alternates of the Bank and IDA..................................71 5 Executive Directors and Alternates of the Bank and IDA and their Voting Power ... .73 6 Principal Officers of the Bank and IDA .........................................74 65 Bank Loans and IDA Credits Classified by Purpose and Area Cumulative Total, June 30, 1967 Expressed in millions of US Dollars, initial commitments net of cancellations and refundings Bank Loans by Area Total Asia and Western Bank and Middle Austral- Hemi- Purpose IDA Total Africa East asia Europe sphere IFC GRAND TOTAL.............................. $12,136.3 $10,442.1 $1,347.0 $3,515.4 $519.8 $2,117.2 $2,842.7 $100.0 ELECTRIC POWER........................... $ 3,697.1 $ 3,588.9 $ 428.3 $ 766.7 $182.3 $ 592.3 $1,619.3 $ - TRANSPORTATION......................... $ 4,013.8 $ 3,446.0 $ 566.7 $1,552.7 $181.4 $ 404.9 $ 740.2 $ - Railways ................................... 1,662.0 1,397.4 338.0 632.2 79.3 172.4 175.6 - Roads 1............. ........................ 1,776.6 1,500.8 137.1 667.0 50.9 126.5 519.2 - Shipping................................... 12.0 12.0 - - - 12.0 - - Ports and waterways........................ 427.3 399.9 41.6 218.9 7.1 86.9 45.4 - Airlines and airports........................ 56.9 56.9 - 5.6 44.1 7.2 - - Pipel ines .................................. 79.0 79.0 50.0 29.0 - - - - TELECOMMUNICATIONS.................... $ 203.0 $ 128.2 $ 22.2 $ - $ - $ 0.2 $ 105.8 $ - AGRICULTURE, FORESTRY AND FISHING .... $ 1,085.8 $ 802.4 $ 95.1 $ 282.4 $103.4 $ 87.8 $ 233.6 $ - Farm mechanization........................ 162.9 133.7 4.1 2.0 89.4 2.0 36.2 - Irrigation and flood control.................. 657.5 466.3 47.5 243.9 6.0 73.3 95.6 - Land clearance, farm improvement, etc....... 105.3 76.6 41.6 13.6 6.0 2.2 13.3 - Crop processing and storage............... 32 2 11.0 1.1 - - 4.2 5.7 - Livestock improvement...................... 94.7 81.6 0.9 1.0 - - 79.7 - Forestry and fishing......................... 33.2 33.2 - 21.9 2.0 6.2 3.1 - INDUSTRY.................................. $ 2,098.0 $ 1,596.7 $ 193.0 $ 799.5 $ 52.7 $ 441.2 $ 110.2 $ - Iron and steel............................... 410.1 410.1 - 344.0 13.4 22.7 30.0 - Paper and pulp............................. 132.2 132.2 - 4.2 1.1 106.9 20.0 - Fertilizer and other chemicals............... 112.0 112.0 30.0 25.0 0.3 56.8 - - General industries.......................... 695.3 233.8 20.5 5.2 23.8 171.0 13.4 - M ining..................................... 197.3 197.3 101.0 48.3 14.2 11.9 21.8 - Development finance companies............. 551.1 511.3 41.5 372.8 - 71.9 25.0 - WATER SUPPLY............................ $ 96.0 $ 52.2 $ - $ 27.0 $ - $ 3.9 $ 21.3 $ EDUCATION PROJECTS..................... $ 137.8 $ 24.3 $ - $ 12.0 $ - $ - $ 12.3 $ - ENGINEERING LOANS....................... $ 3.2 $ 1.7 $ 1.7 $ - $ - $ - $ - $ - FINANCING LOAN (IFC)...................... $ 100.0 $ 100.0 $ - $ - $ - $ - $ - $100.0 GENERAL DEVELOPMENT................... $ 205.0 $ 205.0 $ 40.0 $ 75.0 $ - $ 90.0 $ - $ - POST-WAR RECONSTRUCTION............. $ 496.8 $ 496.8 $ - $ - $ - $ 496.8 $ - $ - Note: Details may not add to totals because of rounding. Detailed Statements of Bank Loans and IDA Credits are available on request. (6 Appendix 1 IDA Credits by Area Asia and Western Middle Hemi- Total Africa East Europe sphere $1,694.2 $235.7 $1,269.2 $80.6 $108.7 $ 108.2 $ - $ 67.5 $25.7 $ 15.0 $ 567.8 $108.8 $ 381.4 $ - $ 77.6 264.6 18.1 246.5 - - 275.8 90.7 107.5 - 77.6 27.4 - 27.4 - $ 74.8 $ - $ 74.8 $ - $ - $ 283.4 $ 41.4 $ 208.9 $20.0 $ 13.1 29.2 1.5 27.7 - - 191.2 13.0 158.2 20.0 28.7 24.9 3.8 - 21.2 2.0 19.2 - 13.1 - - - 13.1 $ 501.3 $ - $ 466.4 $34.9 $ - 461.5 - 461.5 - - 39.8 - 4.9 34.9 - $- 43.8 $ 1.1 $ 39.7 $ - $ 3.0 $ 113.5 $ 84.0 $ 29.5 $ - $ - $ 1.5 $ 0.5 $ 1.0 $ - $ - $ - $ - $ - $- $ - $ - $ - $ - $- $ - $ - $ - $ - $- $ - 67 Bank Loans and IDA Credits by Country Cumulative Total, June 30, 1967 Expressed in millions of US Dollars, initial commitments net of cancellations and refundings Bank Loans IDA Credits Total Country Number AmountO1) Number AmountO1) Number Amount1') Afghanistan................. ............................. - $ - 1 $ 3,500,000 1 $ 3,500,000 Algeria................................................... 3 80,500,000 - - 3 80,500,000 Argentina................................................. 2 125,351,234 - - 2 125,351,234 A ustralia.................................................. 7 417,730,000 - - 7 417,730,000 Austria ....... ........................................... 9 104,860,083 - - 9 104,860,083 Belgium .................................................. 4 76,000,000 - - 4 76,000,000 Bolivia.................................................... - - 3 17,000,000 3 17,000,000 Botswana................................................. - - 1 3,600,000 1 3,600,000 Brazil..................................................... 21 496,134,660 - - 21 496,134,660 Burma ................................................... 3 33,125,195 - - 3 33,125,195 Burundi.................................................. 1 4,800,000 1 1,100,000 2 5,900,000 Cam eroon................................................ 1 7,000,000 1 11,000,000 2 18,000,000 Ceylon.................................................... 3 37,405,774 - - 3 37,405,774 Chile1........... ......................................... 14 202,026,456 1 19,000,000 15 221,026,456 China4.................................................... 4 55,946,796 4 13,083,716 8 69,030,512 Colombia. 2............................................... 29 455,605,441 1 19,500,000 30 475,105,441 Congo (Brazzaville)........................................ 1 30,000,000 - - 1 30,000,000 Congo, Democratic Republic of............................ 5 91,582,854 - - 5 91,582,854 Costa Rica................................................ 7 47,676,251 1 4,650,000 8 52,326,251 Cyprus ............. ..................................... 2 19,191,200 - - 2 19,191,200 Denmark.................................................. 3 85,000,000 - - 3 85,000,000 Ecuadoro ................................................. 8 58,000,000 1 8,000,000 9 66,000,000 El Salvador............................................... 7 50,218,632 1 8,000,000 8 58,218,632 Ethiopia.................................................. 8 56,700,000 2 20,700,000 10 77,400,000 Finland................................................... 13 221,580,180 - - 13 221,580,180 France.................................................. 1 250,000,000 - - 1 250,000,000 Gabon ................................................... 2 47,000,000 - - 2 47,000,000 Ghana.................................................... 1 47,000,000 - - 1 47,000,000 Guatemala................................................ 2 33,200,000 - - 2 33,200,000 G uinea ............... ................................... 1 1,700,000 - - 1 1,700,000 G uyana ................................................... 1 919,017 - - 1 919,01 t Haiti...................................................... 1 2,600,000 1 349,855 2 2,949,855 Honduras................................................. 7 39,317,613 2 12,100,000 9 51,417,613 Iceland................................................... 7 25,914,000 - - 7 25,914,000 India..................................................... 35 998,270,071 21 889,144,080 56 1,887,414,151 Iran...................................................... 9 288,125,746 - - 9 288,125,746 Iraq....................................................... 2 29,293,946 - - 2 29,293,946 Israel..................................................... 4 94,412,479 - - 4 94,412,479 Italy...................................................... 8 398,028,000 - - 8 398,028,000 Ivory Coast)............................................. 1 7,091,567 - - 1 7,091,567 Jam aica................................................. 4 48,200,000 - - 4 48,200,000 Japan.................................................... 31 857,041,004 - - 31 857,041,004 Jordan.................................................... - - 4 10,015,502 4 10,015,502 KenyaM5.................................................. 5 85,200,000 6 26,200,000 11 111,400,000 Korea.................................................... - - 1 13,992,924 1 13,992,924 Lebanon.................................................. 1 27,000,000 - - 1 27,000,000 Lesotho ............... 1 4,100,000 1 4,100,000 Liberia.................................................... 2 4,250,000 - - 2 4,250,000 68 Appendix 2 Bank Loans IDA Credits Total Country Number Amount0) Number Amount0) Number Amount0) Luxem bourg.............................................. 1 $ 11,761,983 - $ - 1 $ 11,761,983 Malagasy Republic.................................. - - 1 10,000,000 1 10,000,000 M alaw l................................................... - - 2 6,790,000 2 6,790,000 M alaysia ................ ................................. 6 180,500,000 - - 6 180,500,000 M ali(a .................................................... - - 1 9,100,000 1 9,100,000 M alta1................... ................................. 1 6,520,000 - - 1 6,520,000 Mauritania............................................... 1 66,000,000 1 6,700,000 2 72,700,000 M auritiusi............... ................................. 1 6,973,119 - - 1 6,973,119 M exico.................................................. 18 625,125,679 - - 18 625,125,679 Morocco.................................................. 4 60,000,000 1 11,000,000 5 71,000,000 Netherlands............................................... 10 236,451,985 - - 10 236,451,985 New Zealand.....................lan......... . ... 4 102,114,000 - - 4 102,114,000 Nicaragua................................................ 13 40,742,003 1 2,994,834 14 43,736,837 N iger................................... .................. - - 1 1,500,000 1 1,500,000 Nigeria .................................................. 6 185,500,000 2 35,500,000 8 221,000,000 Norway................................................... 6 145,000,000 - - 6 145,000,000 Pakistan.................................................. 23 425,252,279 23 330,975,648 46 756,227,927 Panama ................................................. 5 18,047,426 - - 5 18,047,426 Paraguay................................................. 4 11,538,990 3 17,100,000 7 28,638,990 Peru...................................................... 22 201,426,730 - - 22 201,426,730 Philippines............................................... 10 146,533,359 - - 10 146,533,359 Portugal.................................................. 5 57,500,000 - - 5 57,500,000 Rhodesia(c)............................................... 3 86,950,000 - - 3 86,950,000 Senegal(a)................................................ 1 4,000,000 1 9,000,000 2 13,000,000 Sierra Leone........ ..................................... 1 3,800,000 - - 1 3,800,000 Singapore.... ........................................... 4 46,800,000 - - 4 46,800,000 Som alia............................................. ...... - 1 6,200,000 1 6,200,000 South Africa.............................................. 11 241,800,000 - - 11 241,800,000 Spain.3.................................................. 3 138,000,000 - - 3 138,000,000 Sudan.................................................... 4 105,000,000 1 13,000,000 5 118,000,000 Swaziland................................................ 2 6,950,000 1 2,800,000 3 9,750,000 Syria..................................................... - - 1 8,500,000 1 8,500,000 Tanzania(b)............................................... - - 3 23,600,000 3 23,600,000 Thal and.................................................. 17 239,147,572 - - 17 239,147,572 Trinidad and Tobago...................................... 3 37,100,000 - - 3 37,100,000 Tunisia................................................... 3 24,000,000 3 23,862,598 6 47,862,598 Turkey.................................................... 7 70,684,967 7 80,553,984 14 151,238,951 Uganda(b)................................................ 1 8,400,000 1 10,000,000 2 18,400,000 United Arab Republic..................................... 1 56,500,000 - 1 56,500,000 Upper VoltaW. ...... ...- - - U ruguay .........u. ...................................... 6 102,163,116 - 6 102,163,116 Venezuela................................................ 7 247,300,000 - 7 247,300,000 Yugoslavia................................................ 9 270,700,000 - - 9 270,700,000 Zam bia(c)................................................. 4 84,850,000 - - 4 84,850,000 International Finance Corporation .......................... 1 100,000,000 - - 1 100,000,000 TOTAL.. .. $10,442,131,407 109 $1,694,213,141 617 $12,136,344,548 (1) Net of cancellations, refundings and terminations. (a) Loan shown against Ivory Coast is shared with Mali, Senegal and Upper Volta. (b) Three loans aggregating $75 million shown against Kenya are shared with Tanzania and Uganda. c) Three loans totaling $106.7 million have been assigned in equal shares to Rhodesia and Zambia. 69 Administrative Budgets of the Bank and IDA Appendix 3 For the Fiscal Year Ending June30, 1968 Actual Expenses 1967 Budgets 1968 Bank IDA Total Bank/IDA Regular Operations BOARD OF GOVERNORS............... $ 581,309 $ - $ 581,309 $ 919,000 EXECUTIVE DIRECTORS............... 1,272,677 - 1,272,677 1,280,000 OFFICES AND DEPARTMENTS Personal Services................... $12,493,178 $2,528,277 $15,021,455 $16,924,000 Staff Benefits. ..................... 2,067,240 383,757 2,450,997 2,880,000 Travel ... .......................... 2,304,125 517,715 2,821,840 2,888,000 Representation....... ............. 157,538 2j725 160,263 180,000 $17,022,081 $3,432,474 $20,454,555 $22,872,000 RESIDENT MISSIONS.................. 541,117 - 541,117 642,000 COOPERATIVE PROGRAMS: FAO. . . . .. 181,790 24,214 206,004 315,000 Unesco..... 19,103 6,849 25,952 51,000 CONSULTANTS...................... 484,057 54,472 538,529 515,000 FEES AND COMPENSATION............ 396,843 23,664 420,507 463,000 DATA PROCESSING.................. - - - 538,000 OTHER EXPENSES Communications................... $ 721,927 $ 168,898 $ 890,825 $ 994,000 Supplies and Materials............. 206,345 44,437 250,782 275,000 Office Occupancy ................. 1,511,112 297,075 1,808,187 1:957,000 Furniture and Equipment............ 511,268 107,507 618,775 634,000 Printing............................ 420,548 31,189 451,737 528,000 Books and Periodicals............. 44,391 - 44,391 45,000 Library............................. 216,814 - 216,814 238,000 Insurance.......................... 108,369 25,282 133,651 183,000 Other.............................. 32,380 - 32,380 32,000 $ 3,773,154 $ 674,388 $ 4,447,542 $ 4,886,000 CONTINGENCY.................. - - - 250,000 Total Regular Operations........... $24,272,131 $4,216,061 $28,488,192 $32,831,000 Services to Member Countries Development Advisory Services.$..... 5,030,815 $ - $ 5,030,815 $ 4,429,000 Training Programs.................. 1,398,064 - 1,398,064 1,506,000 Settlement of Investment Disputes... 83,047 - 83,047 104,000 Total Servicesto Member Countries. $ 6,511,926 $ - $ 6,511,926 $ 6,039,000 TOTALS......................... $35,000,118 $38,870,000 Bank............................. $30,784,057 $34,653,939 IDA ........ ..................... $4,216,061 $ 4,216,061 The Administrative Budgets for the fiscal year ending June 30, 1968, were prepared by the President and approved by the Executive Directors in accordance with the By-Laws of the Bank and IDA. For purposes of comparison the ad- ministrative expenses incurred during the fiscal year ended June 30, 1967, are also shown, With effect from July 1, 1967, the Executive Directors approved a change in budgetary procedures whereby the Association will reimburse the Bank a single management fee in place of the previous system under which the Association reimbursed the Bank for a number of individual expense items. For fiscal year 1968, this managementfee, which comprises the Association's Budget for the year, has been established in the amount of $4,216,061, being the expenditures of the Association in fiscal year 1967. In approving this amount, the Executive Directors further agreed that a policy as to the amount of the management fee in subsequent years would be determined after the replenishment of IDA is concluded. 70 Governors and Alternates of the Bank and IDA Appendix 4 June 30, 1967 Member Governor Alternate Afghanistan......................Abdul Karim Hakimi ... ..........Abdul Aziz Attayee A lgeria ...........................A hm ed Kaid.........................Kam al A bdellah-Khodja Argentina........................Pedro Eduardo Real..................Carlos Santiago Brignone Australia. .......................W illiam McMahon...................Sir Roland W ilson A ustria...........................W olfgang Schm itz...................Hugo Rottky Belgium ..........................R. H enrion .........................H ubert A nslaux Bolivia...........................Jorge Jord6n Ferrufino .............Enrique Vargas Guzman Brazil...........................Antonio Delfim Neto.................Ruy Aguiar da Silva Leme Burm a ...........................K yaw N yein .........................C hit M oung Burundi.........................Eric M anirakiza ......................Bernard de M artrin-Donos Cameroon.......................Laurent Ntamag....................Jean Assoum ou Canada..........................M itchell Sharp.... ............. ...A . B. Hockin Central African Republic..........B. C. Ayandho ......................A. Zanife Touambona Ceylon...........................U. B. W anninayake..................H. Jinadasa Samarakkody Chad .............................Georges Diguimbaye.......... ... rBoukar Abdout Chile. C...........................Carlos Massad Abud... ...........Jorge Marshall Silva China ............................Ching-yu Che .....................Kuo-Hwa Yu Colombia ........................Abdon Esp.nosa Valderra a..........Jorge Mejfa-Salazar Congo (Brazzaville)...............Bernard Banza Bouiti .............. Jean Moumbouli Congo, Democratic Republic of.....J. J. Litho ...........................Paul Mushiete Costa Rica ......................RaO Hess Estrada...................Alvaro Vargas E. Cyprus...........................Renos Solom ides....................A . C. Patsalides Dahomey.........................Stanislas Kpognon..................Gilles Florent Yehouessi D enmark .........................Otto M ller.......................... Karl O tto B redahl Dominican Republic..............Di6genes H. Fernndez.............Luis M. Guerrero Gomez Ecuador .........................J. Federico Intriago Arrata............Gustavo Larrea Cordova El Salvador .......................Guillermo Boria Nathan. .............Armando Interiano Ethiopiaa ..........................Yima Deressa......................Bucha Demeksa Finland ...........................M auno Ko visto . ...................O lavi Salonen France...........................M inister of Finance..................Bernard Clappier Gabon ............................Em ile Kassa-M apsi...................Pierre M ebaley Germany .........................Karl Schiller.........................Franz Josef Strauss G hana............................A. A . Afrifa....................ia-.KK. Gyasi-Tw um Greece ...........................John Paraskevopoulos...............Costas A. Thanos Guatemala .......................Alberto Fuentes Mohr....... .......Roberto Barillas Izaguirre G uinea .........................Mo u s s a Diakite......................M am adou Fofana u yana...........................P. S. d'A guiar.......................W . P. D'A ndrade Haiti ............................Clovis Desinor .......................A ntonio A ndr6 Honduras...... .................ManuelAcosta Bonilla..............Ricardo ZOniga Augustinus Iceland ...........................Gylfi Gislason...................... M ag s J6nsson India .............................M orarji R. Desa.....................S. Jagannathan Indonesia(2r........s...... Frans Sedadu.D.......................Djuana Kusumahardja(l) Iran............ ......J. . ..... Jamshid Amouzegar.................Jahangir Amuzegar Iraq............................Abdul Rahman Al-Habeeb...........Sa'adi Ibrahim Ireland...... ......*.. ......Charles J. Haughey..................T. K. W hitaker Israel D........ ..... ............ David Horow itz .....................Jacob Arnon Italy ...... .... ................. G uido C arli ..........................Paolo Baffi Ivory Coast.......................Konan Bddio........................Mohamed Diawara Jamaica(2).......................Edward Seaga.......................G. Arthur Brown Japan ............................M ikio M izuta .........................M akoto Usam i Jordan ...........................Hatim S. Zu'bi.......................Nijm eddin Dajani Kenya ............................J. S. G ichuru ........................John Njoroge M ichuki Korea............................Bong Kyun Su.....................Se Ryun Kim Kuwaitd........................-Abdul Rahman Salim Al-Ateeqi AbdIatif Y. Al-Hamad Laos.............................Sisouk Na Champassak ..k. .k........Oudong Souvannavong Lebanon ..........................Khalil Salem .......................Raja Him adeh Liberia ...........................J. M ilton W eeks......................Cyril Bright Libya .............................Sham siddin M ohsen . ...............K. M . Sherlala Luxem bourg .....................Pierre W erner ......................Albert Dondelinger (continued) 71 Governors and Alternates of the Bank and IDA (continued) Appendix 4 June 30, 1967 Member Governor Alternate Malagasy Republic................Rakotovao Ralison...................Louis Rakotomalala M a aw i..........................J. Z. U. Tem bo.......................R. J. C. W ait Malaysia .........................Tan Siew Sin ........................Mohamed Sharif bin Abdul Samad Mali.L o u. . . . Louis-Pascal N gre.................. Mauritania.......................Birane Mamadou Wane..............Moktar Ould Haiba Mexico...........................Antonio Ortiz Mena..................Jos6 Hern6ndez Delgado Morocco ..........................Mamoun Tahiri......................Mohamed Benkirane Nepal ............................Kirt Nidhi Bista......................Nareshm an Singh Netherlands.r.._.........nds..H. J. Witteveen.i.tteveen....... .. __J. H. 0. Count van den Bosch New Zealand(2)....................N. R. Davis..........................N. V. Lough1) Nicaragua u . ......................Guillermo Sevilla-Sacasa.............Silvio Argiello Cardenal Nigeri............................Ali ou Barkire .......................Karimou Goukoye Nigeria...........................A. 0. Awolowo .....................Abdul Aziz Atta Norway ...........................K re W illoch........................C hristian Brinch Pakistan..........................N. M . Uqual ........................Ghulam Ishaq Panama .........................David Samudio A....................Carlos Velarde Paraguay.........................C6sar Romeo Acosta.................Oscar Stark Rivarola Peru ............................Celso Pastor.........................Tulio De A ndrea Philippines.......................Eduardo Z. Romualdez...............Roberto S. Benedicto Portugal l2) ........................U iSSes Cortes.......................Luis M . Teixeira Pinto Rwanda..........................Gaspard Cyimana....................Leon Mbarushimana Saudi Arabia.....................Ahm ed Zaki Saad.................... Senegal ..........................Habib Thiam ........................brahim a Tal Sierra Leone...................... I. Kaisamba.......................Sheikh Batu Daramy Singapore(2)......................Lim Kim San........................Hon Sui Sen Somalia..........................Haji Farah Ali Omer................Said Mohamed Ali South Africa ic ......................Nicolaas Diederichs..................Theunis W illem de Jongh() Spain. ..s.. M.......................Juan Jos6 Espinosa..................Mariano Navarro Rubio Sudan. ...........................Sayed El Sherif Hussein El Hindi.......Sayed Abdalla Siddig Ghandour Sweden..........................G. E. StrAng.........................Krister W ickm an(l) Syrian Arab Republic.............Mouaffaq Shourbaji..................Abdul Hadi Nehlawi Tanzania.........................P. Bom ani...........................A. J. Nsekela Thailand ....................... .Serm Vinicchayakul..................Bisudhi Nimmanahaeminda Togo ............................. Boukar Djobo .......................Jean B. Tevi Trinidad and Tobagob2) ............F C. Prevatt.........................W illiam Demas Tunisia...........................Ahmed Ben Salah...................Ali Zouaoui Turkey ...........................Cihat Bilgehan ......................Zeyyat Baykara Uganda..........................Laurence Kalue-Settala..............A. J. P. M. Ssentongo United Arab Republic.............Hassan Abbas Zaki..................Hamed Abdel Latif El Sayeh United Kingdom ..................Sir Leslie O'Brien....................Sir Denis Rickett United States e....................Henry H. Fowler.....................Eugene V. Rostow Upper Volta ......................Pierre Claver Damiba................Pierre Tahita Uruguay(2)........................C. R. V6gh Garzon...................H6ctor Lorenzo Rios Venezuela 2)......................Rafael Alfonzo Ravard...............Francisco Mendoza Viet-Nam .........................Nguy n-Huu-Hanh ...................Nguy n Van Dong Yugoslavia.......................Janko Smolei ).......................VIadimir Ceric Zambia...........................A. N. L. W ina. .......................Lishomwa Mubita Lishomwa ()Appointment effective after June 30, 1967. (2)Member of the Bank only. 72 Executive Directors and Alternates of the Bank and IDA and their Voting Power Appendix 5 June 30, 1967 Total Votes Executive Director Alternate Casting Votes of Bank IDA Appointed Livingston T. Merchant.............Em mett J. Rice................United States............................................. 63,750 64,558 J. M . StevensO.......................Robert E. Radford.............United Kingdom ......................................... 26,250 26,728 O tto Donner........................J rg Jaeckel..................G erm any................................................. 13,050 11,092 Ren6 Larre ..........................Jean M alaplate ................France ................................................... 10,750 11,092 K . S . S undara Rajan .................S .G uhan .....................India ..................................................... 8,250 8,570 Elected Joaquin Guti6rrez Cano..............Felice G anani.................Greece, Italy, Portugal2, Spain............................. 11,794 7,654 (Spain) (Italy) Hideo Suzuki.......................Maung Gyi....................Burma, Ceylon, Japan, Nepal, Thailand.................... 11,316 10,934 (Japan) (Burma) L. Denis Hudon..................Patrick M. Reid...............Canada, Guyana, Ireland, Jamaica2 10,253 9,834 (Canada) (Canada) J. 0. Stone..........................T. J. Bartley...................Australia, New Zealand(2)South Africa...................... 9880 7,054 (Australia) (Australia) Muhammad Ayubd..................Abdol Ali Jahanshahi..........Iran, Iraq, Jordan, Kuwait, Lebanon, Pakistan, (Pakistan) (Iran) Saudi Arabia, Syrian Arab Republic, United A rab Republic ............................................ 9,877 10,346 Reignson C. Chen...................Chung Pum Song.............China, Korea, Viet-Nam ................................... 8,800 8,106 (China) (Korea) Andr6 van Campenhout..............O t h m a r Haushofer............Austria, Belgium, Luxembourg, Turkey..................... 8,717 5,893 (Belgium) (Austria) Pieter Lieftinck ......................Zoran Zagar..................Cyprus, Israel, Netherlands, Yugoslavia................... 8,676 8,844 (Netherlands) (Yugoslavia) Karl Skjerdal........................h6mur Thor...............Denmark, Finland, Iceland, Norway, Sweden................ 8,466 8,396 (Norway) (Iceland) S. Othello Coleman..................Idd Simba....................Burundi, Ethiopia, Guinea2,) Kenya, Liberia, (Liberia) (Tanzania) Malawi, Mali, Nigeria, Sierra Leone, Sudan, Tanzania, Trinidad and Tobago2,' Uganda, Zambia......... 7,702 9,302 Luis Machado.......................Alfredo Valencia.............Costa Rica, El Salvador, Guatemala, Haiti, (Cuba) (Peru) Honduras, Mexico, Nicaragua, Panama, Peru, Venezuela2) 7,518 7,058 Jorge Mej a-Palacio .................Jos Camacho................Brazil, Colombia, Dominican Republic, Ecuador, . (Colom bia) (Colom bia) Philippines............................................... 7220 8,190 Abderrahman Tazi...................Taoufik Smida.s............ Afghanistan, Algeria, Ghana, Laos, Libya, (Morocco) (Tunisia) Malaysia, Morocco, Singapore(,)Tunisia................... 7030 7,294 Mohamed Nassim Kochman..........Michel Bakoo..............Cameroon, Central African Republic, Chad, (Mauritania) (Chad) Congo (Brazzaville), Congo, Democratic Republic of, Dahomey, Gabon, Ivory Coast, Malagasy Republic, Mauritania, Niger, Rwanda, Senegal, Somalia, Togo, Upper Volta................................ 6,783 10,802 Luis Escobar........................Daniel Fernndez............Argentina, Bolivia, Chile, Paraguay, Uruguay2).............. 6,466 6,744 (Chile) (Argentina) In addition to the Executive Directors and Alternates shown in the foregoing list, the following also served as Executive Director or Alternate after November 1, 1966, the effective date of the Eleventh Regular Election: End of period Executive Director End of period of service Alternate Executive Director of service M . W . O'Donnel ...........................February 1, 1967 ...........................Bernard Zagorin...........................Decem ber 13, 1966 (Australia) (United States) Helga Steeg...............................May 31, 1967 (Germany) Note: Indonesia (2,450 votes) is not yet formally represented by an Executive Director. ()To be succeeded by E. W. Maude. (?)Member of the Bank only. 73 Principal Officers of the Bank and IDA Appendix 6 June 30, 1967 George D. Woods.........President J. Burke Knapp*..........Vice President and Chairman, Loan Committee S. Aldewereld*...........Vice President A. Broches* ..............General Counsel Richard H. Demuth*.......Director, Development Services Department Irving S. Friedman*.......The Economic Adviser to the President and Chairman, Economic Committee Mohamed Shoaib*.......Vice President S. R. Cope................Director, Europe Department and Deputy Chairman, Loan Committee Gerald Alter..............Director, Western Hemisphere Department Dragoslav Avramovic......Director of Special Economic Studies 1. P. M. Cargill............Director, Asia Department Robert W. Cavanaugh.....Treasurer Bernard Chadenet.........Director, Projects Department Federico Console..........Special Representative for U.N. Organizations Abdel G. El Emary.........Director, Africa Department Harold N. Graves, Jr....... Director of Information Michael L. Hoffman........Associate Director, Development Services Department Howard C. Johnson**..... Director, New York Office Andrew M. Kamarck.......Director, Economics Department K. S. Krishnaswamy.......Director, Economic Development Institute Michael L. Lejeune........Director, Middle East and North Africa Department M. M. Mendels............Secretary John D. Miller.............Special Representative in Europe Hugh B. Ripman..........Director of Administration Leonard B. Rist...........Special Adviser to the President Orvis A. Schmidt..........Special Adviser to the President J. H. Williams.............Director, Department of Program Evaluation and Control *Member, the President's Council. Mr. Cope serves as Mr. Knapp's Alternate on the President's Council. **Not an officer of IDA. 74 」，·―「，·』―스Z/[-&! 、・jl×、、…、… へ1 …―,& / ソ In 19関／67,46 Bank Loans were made in 33 countries and one-oan tothe]nternational Finance Corporation,tc・t:]1..：・J lr．りーコ…ヨ‘・そ．・t・二t王三7f・7三n.,11．・Ir&. In 1966/67,20-DA Credits we「e made in 14 countriestotaling the equivalent of$353.54 mlllion. Headquarters London Off ice World Bank and IDA 1818 H Street, N.W. New Zealand House Washington, D.C. 20433, U.S.A. Haymarket Telephone: E.')(ecutive 3-6360 London S.W.1, England Telephone: WHItehall 3886-7 New York Office 20 Exchange Place Cable Addresses New York, N.Y. 10005, U.S.A. World Bank: INTBAFRAD Telephone: WHitehall 3-5400 IDA: INDEVAS European Office 4 Ave. d'16na Paris 16e, France Telephone: KI-Eber 25-10