WORLD BANK ANNUAL REPORT 1981 o k f. 1, VA0)00'4; N S~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ WORLD BANK ANNUAL REPORT 1981 ll=i World Bank 1818 H Street, NW. IM Washington, D.C. 20433 2 Cover: One of three experimental windmills on Lake Photo Credits Victoria that supply energy to nearby villages. The Cover: Kay Chernush windmill was manufactured by a small-scale Frontispiece: Yosef Hadar metalworks factorv that has been assisted by the Page 33: James Pickerell Kenya Industrial Estates, a beneficiary of a $10 Page 39: Ivan A. Andrews million IDA credit. Page 51: Kay Chernush Page 57: Tomas Sennett Page 63: Giuseppe Franchini Frontispiece: An agricultural extension agent Page 68: Ray Witlin checking a farmers millet crop in Gusau, Nigeria. Page 72: Philip Boucas 3 The World Bank The World Bank is a group of three to date. The funds used by IDA, called credits institutions, the International Bank for to distinguish them from Bank loans, come Reconstruction and Development (IBRD), mostly in the form of subscriptions, general the International Development Association replenishments from IDA's more industrialized (IDA), and the International Finance and developed members, special contributions Corporation (IFC). by IDA's richer members, and transfers from The common objective of these institutions the net earnings of the World Bank. The terms is to help raise standards of living in develop- of IDA credits, which are made to govern- ing countries by channeling financial resources ments onlv, are 10-year grace periods, 50-year from developed countries to the developing maturities, and no interest. An annual service world. fee of 0.75 percent is charged on the disbursed The World Bank, established in 1945, is portion of each credit. Although legally and owned by the governments of 139 countries. financially distinct from the Bank. IDA is The Bank, whose capital is subscribed by its administered by the same staff. member countries, finances its lending opera- The IFC was established in 1956. Its function tions primarily from its own borrowings in the is to assist the economic development of less world capital markets. A substantial contribu- developed countries by promoting growth in tion to the Bank's resources also comes from the private sector of their economies and help- its retained earnings and the flow of repay- ing to mobilize domestic and foreign capital ments on its loans. Bank loans generally have for this purpose. Membership in the Bank is a a grace period of five years and are repayable prerequisite for membership in the IFC, which over 20 years or less. They are directed toward totals 115 countries. Legally and financially, the developing countries at more advanced stages IFC and the Bank are separate entities. The of economic and social growth. The interest Corporation has its own operating and legal rate the Bank charges on its loans is calculated staff, but draws upon the Bank for administra- in accordance with a guideline related to its tive and other services. cost of borrowing. While the World Bank has traditionally The Bank's charter spells out certain basic financed all kinds of capital infrastructure such rules that govern its operations. It must lend as roads and railways, telecommunications, only for productive purposes and must stimu- and ports and power facilities, its present late economic growth in the developing coun- development strategy places a greatly tries where it lends. It must pay due regard to increased emphasis on investments that can the prospects of repayment. Each loan is made directly affect the well-being of the masses of to a government or must be guaranteed by the poor people of developing countries by making government concerned. The use of loans can- them more productive and by integrating them not be restricted to purchases in any particular as active partners in the development process. member country. And the Bank's decisions to This strategy is increasingly evident in the lend must be based only on economic agriculture and rural development projects that considerations. the Bank and IDA help finance. It is also evi- The International Development Association dent in projects for education and family plan- was established in 1960 to provide assistance ning and nutrition, and in the Bank's concern for the same purposes as the Bank, but pri- for the urban poor, who benefit from projects marily in the poorer developing countries and designed to develop water and sewerage on terms that would bear less heavily on their facilities, as well as "core" low-cost housing, balance of payments than Bank loans. IDA's and to increase the productivity of small assistance is, therefore, concentrated on the industries. very poor countries-mainly those with an At the same time, lending for traditional annual per capita gross national product of less projects continues, but it is being redirected than $681 (in 1979 dollars). More than 70 coun- towards becoming more responsive to the new tries are eligible under this criterion. strategy of deliberately focusing on the poorest Membership in IDA is open to all members segments of society in the developing of the World Bank and 125 of them have joined countries. 4 Contents The World Bank 3 The Executive Directors and Alternates 9 The Record for Ten Years, 1972-1981 10 Chapter One: The World Bank: Fiscal 1981, in Brief 11 Presidential Succession 11 Patterns of Lending 11 Disbursements 15 Currency Pooling 15 IDA: The Sixth Replenishment 15 Bank Staff 16 Membership 17 ICSID 17 IFC 17 Chapter Two: The Economic Scene: A Global Perspective 19 Chapter Three: 1981 Regional Perspectives 31 Eastern Africa 31 Western Africa 37 East Asia and Pacific 43 South Asia 49 Europe, Middle East, and North Africa 55 Latin America and the Caribbean 60 Chapter Four: Bank Policies and Activities, Fiscal 1981 67 Bank Policies Energy 67 Structural Adjustment Review 69 Agricultural Research 71 Bank Activities Economic Development Institute 73 Technical Assistance 75 Inter-Organizational Cooperation 76 Economic Research and Studies 80 Operations Evaluation 82 Internal Auditing 83 Contents 5 Chapter Five: Borrowings and Finance 84 Chapter Six: Executive Directors 95 Executive Directors 95 Joint Audit Committee 97 Projects Approved for Bank and IDA Assistance in Fiscal 1981, by Sector 99 Projects Approved for Bank and IDA Assistance in Fiscal 1981, by Region 120 Projects Approved for Bank and IDA Assistance in Fiscal 1981, by Purpose 122 Statistical Annex Index 127 General Notes to Annex Tables 128 Tables 1-10 130 Bank Appendices Index 151 Financial Statements 152 IDA Appendices Index 169 Financial Statements 170 Bank/IDA Appendices Index 185 Appendix 1: Bank and IDA Cumulative Lending Operations, by Major Purpose and Region, June 30, 1981 186 Appendix 2: Bank and IDA Cumulative Lending Operations, by Borrower or Guarantor, June 30, 1981 188 Appendix 3 Statement of Loans 4pproved during Fiscal Year 1981 191 Appendix 4: Statement of Credits Approved during Fiscal Year 1981 196 Appendix 5: Budgets of the Bank and IDA 200 Appendix 6: Governors and Alternates of the Bank and IDA 202 Appendix 7: Executive Directors and Alternates of the Bank and IDA 205 Appendix 8: Officers and Departnment Directors of the Bank and IDA 206 Appendix 9: World Bank Offices 208 6 Contents Text Tables Chapter One Distribution of Bank and IDA Commitments, by Sector-Amounts 12 Distribution of Bank and IDA Commitments, by Sector-Percentages 13 Distribution of Bank and IDA Commitments, by Income Group 13 IDA: Advance Contributions to the Sixth Replenishment 16 Chapter Two Table 1. Real Growth of GNP and GNP per Capita, 1966-80 19 Table 2. Industrial Countries: Real Growth and Inflation, 1977-80 20 Table 3. Current-Account Balances, 1970-80 21 Table 4a. Balance-of-Payments Financing of Oil-Importing Developing Countries, 1978 and 1980 22 Table 4b. BaLance-of-Payments Financing of Low-Income Oil-Importing Developing Countries, 1978 and 1980 23 Table 4c. Balance-of-Payments Financing of Middle-Income Oil-Importing Developing Countries, 1978 and 1980 23 Table 5. Public and Private Debt of the Developing Countries 24 Table 6. Debt and Debt-Service Indicators of Public Debt 25 Table 7. Net Disbursements of Official Development Assistance, 1976-80 26 Table 8. Total Merchandise Exports, 1965-80 26 Chapter Three Borrowers, Fiscal 1979-8 1: Population and per Capita GNP, 1979 Eastern Africa 31 Western Africa 37 East Asia and Pacific 43 South Asia 49 Europe, Middle East. and North Africa 55 Latin America and the Caribbean 60 Lending to Borrowers. by Sector, 1972-81 Eastern Africa 32 Western Africa 38 East Asia and Pacific 44 South Asia 50 Europe, Middle East, and North Africa 56 Latin America and the Caribbean 62 Bank and IDA: Trends in Lending, by Sector, 1979-81- Amounts and Percentages 66 Contents 7 Chapter Four Cofinancing of Bank- and IDA-Assisted Projects, by Region, 1978-1981 80 Chapter Five Bank Borrowings in Fiscal 1981 86 Outstanding Obligations of the Bank 86 Cost of the Bank's Average Outstanding Borrowings 86 World Bank Borrowings, Fiscal Year 1981 87 Increases in Subscriptions in the Bank's Subscribed Capital 88 Borrowing in International Capital Markets 89 Figures Chapter One Bank and IDA: Lending to Countries with Annual per Capita Income below $371, 1972-81 14 Chapter Two Petroleum Export Prices 27 Chapter Three Trends in Lending, 1972-81 Eastern Africa 31 Western Africa 37 East Asia and Pacific 43 South Asia 49 Europe, Middle East, and North Africa 55 Latin America and the Caribbean 60 Chapter Five World Bank: Gross Borrowings, 1972-81 85 9 The Executive Directors and Alternates Executive Directors Alternates Y. S. M. Abdulai William Smith John Anson Derek F. Smith David Blanco Alberto Sola Jacques de Groote Turan Kivan, Earl G. Drake Reno J. Brown Said E. El-Naggar Saleh A. Al-Hegelan Jaime Garcia-Parra Jose G. Cardenas Ismail Khelil Saad Zerhouni Eberhard Kurth Norbert Schmidt-Gerritzen Anthony IJ. A. Looijen Miodrag M. Stojiljkovic Hans Lundstrom Ole L. Poulsen S. A. McLeod Anthony S. Cole Paul Mentre de Loye Marthe Parent Seiji Morioka Kimiaki Nakajima Joaquin Muns Roberto Mayorga-Cortes Giorgio Ragazzi Rodrigo M. Guimaraes H. N. Ray M. Syeduz-Zaman Armand Razafindrabe Nicephore Soglo Wang Liansheng Chen Hui Zain Azraai Aung Pe The Executive Directors of the thoughtful leadership as Chairman of International Bank for Reconstruction the Board of Directors of the Bank and Development and the and IDA and for his dedication to the International Development interests of the Bank and IDA and Association have had prepared this their member countries. Annual Report for the fiscal year July The Directors also express their 1,1980 to June 30, 1981 in accordance appreciation to the more than 5,000 with the By-Laws of the two men and women staff members of the organizations. A.W. Clausen, who Bank for their dedication to the succeeded Robert S. McNamara as institution's ideals. They note that the President of the Bank and the continued professionalism of the staff Association and as Chairman of the has made it possible for the Bank to Boards of Executive Directors on July increase its operations without 1. 1981, has submitted this Report, decreasing the attention paid to together with accompanying economic analysis and project administrative budgets and audited appraisal supervision and evaluation. financial statements, to the Board of a Governors. The Annual Reports of the International Finance Corporation and The Directors wish to take this the International Centre for opportunity to thank Mr. McNamara Settlement of Investment Disputes for his thirteen years of dynamic and are published separately. August 4, 1981 10 The Record for Ten Years, 1972-81 Fiscal year 1972 1973 1974 1975 1976 1977 1978 1979 198(1 1981 World Bank US$ millions Loan amounts 1,966 2,051 3,218 4,320 4,977 5,759 6,098 6,989 7,644 8,809 Disbursements 2 1,182 1,180 1,533 1,995 2,470 2,636 2,787 3,602 4,363 5,063 Total income 646 758 929 1,157 1,330 1,617 1,947 2,425 2,800 2,999 Net income 183 186 216 275 220 209 238 407 588 610 Total reserves 1,597 1,750 1,772 1,902 1,916 2,026 2,245 2498 2,893 2,859 Borrowings: total 1,744 1,723 1,853 3,510 3,811 4,721 3,636 5,085 5,173 5,069 Borrowings: net 1,136 955 990 2,483 2,530 3,258 2,171 3,235 2,382 2,347 Subscribed capital 26,607 30,397 30,431 30,821 30,861 30,869 33,045 37,429 39,959 36,614 number Operations approved 72 73 105 122 141 161 137 142 144 140 Borrowing countries 40 42 49 51 51 54 46 44 48 50 Member countries 117 122 124 125 127 129 132 134 135 139 Professional staff (number) 1,516 1,654 1,752 1,883 2.066 2,203 2,290 2.382 2,474 2,552 IDA US$ millions Credit amounts 1,000 1,357 1,095 1,576 1,655 1,308 2,313 3,022 3,838 3,482 Disbursements 261 493 711 1,026 1,252 1,298 1,062 1,222 1.411 1,878 Usable resources, cumulative 4,204 7,019 7,433 11,608 11,514 11,789 18,062 19,661 20,773 22,331 number Operations approved 3 68 75 69 68 73 67 99 105 103 106 Borrowing countries 38 43 41 39 39 36 42 43 40 40 Member countries 108 112 113 114 116 117 120 121 121 125 l Excludes oars to IFs of $60 million in FY1972, $40 millor in FY1973, $110 million in FY1974, $50 million ir FY1975, $70 millnion FY1976, $20 mill on n FY1977, and $100 m lion in FY1981. Includes amounts in FY1976 and FY1977 lent on Third Wincow terms. 2 Excludes disbirsemerts on loans to IFC 3 Joint Bark/IDA operations are counted on y once as Bank operations Chapter One The World Bank: Fiscal 1981, in Brief In fiscal 1981' lending commitments by the Presidential Succession World Bank, credit approvals from the Interna- On June 30,1981, Robert S. McNamara tional Development Association (IDA). and OnJun e nt1obe B amara investment commitments bv the International retired as President of the Bank Group. Finance Corporation (IFC) amounted to $13,102 Mr. McNamara had served as president million, up $940 million (8 percent) from the for thirteen years. previous year.2 On July 1,1981, A. W. Causen became The Bank committed $8o(u9 million in sup- the sixth president of the Bank Group. He port of 140 projects in fifty countries. In fiscal was elected to the position by the Bank's 1980, financial assistance from the Bank totaled Executive Directors in December 1980). $7,644 million for 144 projects in forty-eight meinber countries. IDA credits approved during the vear amounted to $3,482 million equivalent; of that Patterns of Lending amount, 75 percent was in the form of commit- Trends in the pattern of lending bv the Bank ments. These credit approvals were in support of and by IDA have evolved as a direct result of 106 projects in forty countries. In fiscal 1980. Bank policies as periodically reaffirmed in IDA commitments stood at $3,838 million, and numerous discussions by the Executive Direc- 103 projects were assisted in fortv countries. tors over the past ten vears. Discernible changes World Bank loans and IDA credits helped in the distribution of funds by country income finance about 35 percent of the cost of projects group and by sector have not come about, for which total amounts could be calculated. therefore, by accident. The distribution of Bank IFC investments in fiscal 1981 were $811 and IDA funds in fiscal 1981 thus reflects deci- million, up $130 million over fiscal 1980. A total sions some of which were made years before.3 of fifty-six investments were approved in thirty- four countries. Distribution by Income Group. The extent of Other highlights in fiscal 1981 included: poverty in a member country is an important -Disbursements by the Bank and IDA of determinant in the allocation of Bank and IDA $6,941 million, up $1,167 million (2() percent) resources. Low-income countries (those with a over fiscal 1980. Bank disbursements were per capita gross national product (GNP) below $5,063 million: IDA disbursements stood at $371 as measured in 1979 U.S. dollars) have $1,878 million equivalent. Fiscal 1980 disburse- received a steadily increasing proportion of ments by the Bank totaled $4,363 million; IDA Bank and IDA lending. The major source of disbursements for fiscal 198Swere $1.41t million; funds for these countries is IDA, and the severe -A net transfer of resources (disbursements structural weaknesses of most of their minus repayments of principal, interest. and economies, and thus their limited capacity to other charges) by the Bank and IDA to develop- service debt, imply continued reliance on IDA ing member countries of $3,362 million, a figure for most of their funds for the foreseeable future. $73(0 million (28 percent) above that of fiscal 1980: -Cofinancing of Bank-assisted and IDA- Yhe fiscal Ycar oI the \Vorld Bank. as xncll as of its two affiliates. assisted projects of $4.038 million, down $2.478 ruins from July I to Jtinc 30. million, or 38 percent, from fiscal 1980W Siice the rQal value of loan conmrinitlnnts by the Bank and IDAt crorLed( to tho extent that cost inflation occurs over the period ofi -An increase in the Bank's net income of $22 disburscments, it is the practice of thc Ban11k to make illoaitces for itflatolt at the timc ofcomrnintmelntire lelaltOr row U>Cd tO million (4 percent) to $61t0 million; exprcss nciidinig in real tcrms is a weighted ascraigc of thc price -Bank borrowings of $5,069 million, mostlv lcsels as,umed to hc prevailing ovcrthe period of the cxecution ot in the capital markets of Europe and Japan. That exprolsst. iTI trnsal oif( Bank allnrd IthIvA woumdicn 1r4 w3rc to iie amount does not include $646 million that had Stgunticint v,rr.ttortnsl iiccur. howcr. tre reyar ii rNear it thte been borrowed in fiscal 1980 and credited to the pattern loi lcirtdng. Suclr sintelc-vear variitiorrs most ofteit rcfect only a oinen,,car step int the Bankrs leaiding to it, hoirontig, mem. fiscal 1981 borrowing program. her ciraritric., rather than a change iti its lendinrt program. 12 The World Bank: Fiscal 1981, in Brief accomplished especially through lending for Note on Dollar Amounts structural adjustment. Increases in Bank lending have been justified on the grounds that Dollar amounts used in the text of the availability of Bank resources could help these Annual Report refer to current United States countries achieve a better allocation of their own dollars. Where special drawing right (SDR) resources, both through the careful selection of amounts are used for the capital of the Bank p one SDR equals 1.15060 current United States projects for Bank financig and through the dollars at June 30, 1981 (one SDR equaled Bank's policy analysis and institution-building 1.32438 current United States dollars at June advice. IDA funds do continue, however, to play 30, 1980). an important though declining role for the For a detailed discussion and the basis for "lower middle-income" countries, those with a SDR amounts used for IDA subscriptions and contributions. see IDA Appendices: Appen- per capita GNP of between $371 and $680 as dix F-Notes to Financial Statements. measured in 1979 U.S. dollars. Combined Bank and IDA lending to all mid- dle-income countries amounted to 57 percent of In fiscal 1981, low-income countries received total commitments in fiscal 1981 (76 percent of 35 percent of the combined commitments of the total Bank lending and 14 percent of alt IDA Bank and IDA compared with 27 percent commitments). In the period through fiscal 1968, through fiscal 1968. These countries accounted lending to such countries accounted for 37 per- for 87 percent of IDA commitments during the cent of combined Bank and IDA commitments. year as compared with 78 percent through fiscal In contrast, lending to the higher-income coun- 1968. Low-income countries designated by the tries has declined from 36 percent of total com- UN General Assembly as being the least mitments in the period through fiscal 1968 to 8 developed accounted for 10 percent of combined percent in fiscal 1981. Bank and IDA lending amounts in fiscal 1981 (and 33 percent of IDA commitments) as com- Distribution by Sector. Before fiscal 1968, two pared with 4 percent through fiscal 1968. thirds of total Bank and IDA lending went to the Efforts have been made in the past few years power and transportation sectors; agriculture, to expand Bank lending to all middle-income industry (including development finance com- countries (those with a per capita GNP of panies), and program lending accounted largely between $371 and $1,895). This has been for the rest. The main focus of Bank activities then Distribution of Bank and IDA Commitments, by Sector-Amounts (In millions of current US dollars. Fiscal years.) Amounts Through Sector 1968 1969-73 1974-78 1979 1980 1981 Agriculture and Rural Development 1,089 2,586 10,019 2,522 3,458 3,763 Development Finance Companies 724 1,224 3,053 591 818 1,113 Education 162 723 1,339 496 440 735 Energy Oil, gas, and coal 76 111 279 112 457 659 Power 3,986 2,245 4,320 1,355 2.392 1,323 Industry 915 672 2,806 843 423 886 Nonproject and Structural Adjustment 1,743 722 1,556 407 522 1,012 Population, Health, and Nutrition - 66 188 114 143 13 Small-Scale Enterprises 7 7 468 86 260 229 Telecommunications 198 695 732 110 131 329 Transportation 4,220 3,144 5,328 1,904 1.445 1,063 Urbanization - 52 812 310 349 501 Water Supply and Sewerage 130 589 1,329 1,019 631 535 Other - 16 90 143 13 131 Total 13,250 12,849 32,320 10,011 11.482 12,291 NOTE: Details may not add to totals due to rounding. Includes nonfuel minerals and mining. h Includes technical assistance and tourism. Distribution by Sector 13 Distribution of Bank and IDA Commitments, by Sector-Percentages (Fiscal years.) Percentages Through Sector 1968 1969-73 1974-78 1979 198() 1981 Agriculture and Rural Development 8 20 30 25 30 31 Development Finance Companies 5 10 9 6 7 9 Education 1 5 4 5 4 6 Energy Oil, gas, and coal 1 1 1 1 4 5 Power 30 18 13 14 21 11 Industry 7 5 9 10 4 7 Nonproject and Structural Adjustment 13 6 5 4 5 8 Population, Health, and Nutrition - 1 1 1 1 - Small-Scale Enterprises - - 1 1 2 2 Telecommunications 1 5 2 1 1 3 Transportation 32 25 17 19 13 9 Urbanization - - 2 3 3 4 Water Supply and Sewerage 1 4 4 10 5 4 Other b _ _ 1 _ Total 100 100 100 100 100 100 NOTE: Details may not add to totals due to rounding. Includes nonfuel minerals and mining. Includes technical assistance and tourism. Distribution of the Bank and IDA Commitments, by Income Group (Fiscal years.) Percentage of total Through Pler capita GNP' 1968 1969-73 1974-78 1979 1981' 19811 Group I Bank 18 9 15 15 10 14 (up to $370) IDA 78 78 84 84 82 87 Total 27 30 32 36 34 35 Group II Bank 10 13 20 19 24 19 ($371-$680) IDA 8 12 14 16 18 14 Total 10 13 19 18 22 17 Group III Bank 9 14 14 17 18 16 ($681-$1,170) IDA 5 4 1 - - - Total 8 11 11 12 12 11 Group IV Bank 21 38 35 35 32 41 ($1,171-$1,895) IDA 9 5 1 - - - Total 19 28 26 24 22 29 Group V Bank 42 27 16 15 16 11 (over $1,895) IDA - - - - - - Total 36 18 12 10 10 8 NoTE: Details may not add to totals due to rounding. d No attempt has been made to allow for country movements from one income group to another ovcr tirne 14 The Word Bank: Fiscal 1981, in Brief Bank and IDA: Lending to Countries w^ith Annual per Capita Income beloiN $371, 1972-81 fLS$ m Os. F,sc2 years 35134 Bank ICA TnaX 2.937.4 1~~~~~~~~~~~~~~~~~~~~~, 04.0 2.15N ~ ~~~~~~~.10 E!79 do iars DA: The S xth Replenishment 15 was to assist member countries in strengthening Seventy-seven of the 222 loans have had dis- the basic infrastructure of their economies. bursements and, accordingly, the pool had Subsequently, the sectoral composition of attained a value of $294.9 million equivalent by lending has shifted markedly in response to new the vear's end. There were twentv-five curren- perceptions about the development needs of its cies in the pool on June 30, 1981. member countries. Lending operations have addressed broader development objectives, IDA: The Sixth Replenishment focused on institution building, and aimed at The Sixth Replenishment of IDA, covering programs designed to improve the productivity fiscal years 1981-83 and providing funding in an of the rural and urban poor. amount totaling the equivalent of $12,000 million, can onlv become effective when mem- Disbursements bers. including at least 12 Part I (or developed Disbursements on Bank loans to member countrv) members, deposit Instruments of Com- countries in fiscal year 1981 were $5,063 million, mitment and Qualified Instruments of Commit- an increase of 16 percent over the previous year. ment totaling $9,600 million (or 8() percent) with For IDA credits. disbursements were $1,878 the Association. As of the end of the fiscal year, million equivalent, up 33 percent from fiscal this "trigger" amount had not been reached and 1980. Part of the growth of disbursements was therefore the Agreement on the Sixth due to recent increases in nonproject lending. Replenishment was not yet effective. The volume of annual disbursements on proj- Notification of participation in the Sixth ect lending is influenced by a variety of factors Replenishment by the United States is necessary such as the complexity of the projects, economic in order to trigger the effectiveness of the Agree- conditions in borrower countries, the size of the ment.; The United States administration is undisbursed balances on approved loans and working to ensure that its notification will be credits, and the sector and age composition of received as soon as possible. Congressional the undisbursed balances. There has been a authorization and appropriation is being sought general lengthening of the disbursement profile, for the full U.S. share, of $3,240 million, in the caused by increased Bank lending to poorer three-year Sixth Replenishment period. member countries and to the more complex sec- However, the United States plans to rephase its tors to which lending increased beginning in the commitments to IDA in graduated appropria- early 1970s. As a result. the share of faster- tions of $540 million in fiscal 1981, $850) million in disbursing projects in the undisbursed balances fiscal 1982, and $1,850 million in fiscal 1983, dropped, affecting the growth of annual dis- rather than in three equal installments of $1,080 bursements in the late seventies. In the last two million each year. As of June 30.1981, authoriza- years. however, disbursements on project lend- tion and appropriation measures in the two ing have resumed a moderate growth, reflecting houses of the U.S. Congress were in various the stabilization of the share of faster-disbursing stages of advancement. projects at a new level. Pending the effectiveness of the Sixth Replenishment, the Association has been mak- ing credit commitments against advance con- Currency Pooling tributions amounting to about SDR 1,837 The currency pooling system, designed to million ($2,409 million) provided by twenty-two equalize exchange rate risks among the Bank's countries. A meeting of IDA deputies, repre- borrowers, became operational on July 1, 1980, senting donor countries, was held in March to for all new loans negotiated on or after that review the situation. The deputies expressed date.4 In adopting this system. it had been concern at the delav in the effectiveness of the agreed that the undisbursed portions of loans Replenishment and at the serious implications of approved before July 1, 198(0 should also be eligi- this for development assistance to the world's ble for inclusion in the new system at the bor- poorest countries. They urged all donors who rower's option. Letters were sent to borrowers, had not yet done so to complete their notification therefore, recommending that they give con- procedures as soon as possible. sideration to the transfer of their undisbursed At that March meeting, the deputies recog- loan balances into the system. For those bor- nized the importance of minimizing thc interrup- rowers who indicated their intention to partici- pate. letters of agreement were signed to permit the inclusion of such loans into the pool. At the end of fiscal 1981, 222 loans were in the IFor furthcr dctails on thc currencv pooling systern. sce thic World ' ~ ~ ~~~~~ ~Biank Antiti(/ Repoit (1979). pageCs 28 29 andle the World Bank pool. of which 129 were loans negotiated on or .4nnual Repor ( 1980). paCes 71 - t71. after July 1, 1981). The total commitments of the Vhe tU.. share in the Agrcincmint is 27 percent oi the total. Wlithout its notifi(ation onf participation therefore, the 80 percent 222 loans amounted to SI1,602 .5 million. "trigger" amount is unobtainable. 16 The World Bank: Fiscal 1981, ir Brief IDA: Advance Contributions to the Sixth Replenishment (As of June 3). 1981. In millions.) National USS SDR Unit of Couuntrv currency equivalent equivalent obligation Argentina $a 11,126.250 $ 7.500 SDR 5.721 US dollar Australia $A 67.843 76.399 58.278 National currency Brazil Cr$ 14.843 0.500 0.381 US dollar Canada Can$ 177.109 151.855 115.841 National currency Denmark DKr 247.680 48.000 36.615 National currency Finland Fmk 89.447 24.000 18.307 National currency France F 445.500 107.609 82.086 National currency Germany DM 880.350 500.002 381.410 SDR Iceland IKr 1.370 0.359 0.274 National currency Ireland £lr 2.077 4.400 3.356 National currency Japan Y 140,377.220 625.845 477.405 National currencv Korea, Republic of W 421.080 0.871 0.665 National currency Kuwait KD 18.400 66.666 50.853 National currency Luxembourg LuxF 71.230 2.500 1.907 National currency Netherlands f. 204.206 104.400 79.638 National currency New Zealand $NZ 2.900 2.908 2.219 National currency Norway NKr 200.000 40.630 30.993 National currency Saudi Arabia SRls 407.421 121.800 92.913 US dollar South Africa R 0.826 1.000 0.763 National currency Sweden SKr 460.000 110.604 84.370 National currency United Kingdom £ 184.992 404.022 308.216 National currency Yugoslavia Din 127.047 6.667 5.085 National currency TOTAL $2,408.537 SDR 1,837,296 NOTE: This table is based on IMF representative exchange rates and the SDR value of currencies published by thc IMF on October 5, 1979. tion in IDA's operations due to a lack of similar levels. Of the remaining 265 recruited at commitment authority. There was strong sup- higher levels, 114, or 43 percent, were from port for the view that additional advance con- developing countries. By June 30, 1981, 2,552 tributions would provide IDA with further staff at such higher levels represented 101 commitment authority for a temporary period. different nationalities; 98 had been represented It was suggested that these contributions should at the end of fiscal 1980. Thirty-four percent were be forthcoming from the largest possible num- from developing countries; the percentage was ber of countries and should reflect donors' full 33.5 a year before. first installments. A special effort has been made to increase the The deputies also recognized that the budge- representation of women and of African coun- tarv rephasing contemplated by the United tries in the Bank among these higher-level staff. States would create a major problem with Women at these levels now represent 12.6 per- respect to IDA's commitment authoritv even cent of staff; the percentage was 12.0 at the end after the replenishment became effective. of fiscal 1980. The modest net increase is Accordingly, it was agreed that a meeting of attributable to a limited market from which to deputies would be held immediately following recruit women as specialists with technical skills the effectiveness of the Sixth Replenishment to and experience. While African staff are now well consider the steps that should be taken. consis- represented in a variety of disciplines, women tent with equitable burden sharing, to provide are found in fewer and are least represented in IDA commitment authority at an adequate technical positions. During the past five years, level. the increase in total staff of the Bank was about 5 percent, the increase of women was 14 percent, Bank Staff and of African staff slightlv more. During the During fiscal 1981, the Bank continued its past fiscal year, the number of women increased efforts to broaden the nationality distribution of 8.8 percent and African nationals 15.2 percent, staff and to increase the representation of while total specialist staff of the Bank grew only women. During the year, 653 new members about 3 percent. joined the staff of the Bank. Of these, 388 were In carrving out its objectives in institutional secretarial. clerical, or other support staff at recruitment, the Bank is emphasizing the addi- IFC 17 tion of younger staff members, especially economic development by encouraging the through the Young Professionals Program. Can- growth of productive private enterprises. In didates selected through the program are highly addition to providing and helping raise loan and qualit'ied, professionally flexible men and equity capital, the Corporation works to women thirty years old or younger, with strong strengthen the confidence of investors and pro- backgrounds in economics or finance. The Pro- mote investment opportunities in the developing gram has made a distinct contribution to increas- world. It uses its own resources to assist investors ing the representation of women, African assemble the necessary financing, technology, nationals, and the developing countries on the and management needed for the establishment specialist staff. In fiscal 1981, forty-nine Young of productive enterprises. Professionals reported for duty. Of these, 51 per- The expansion of the Corporation's activities, cent were nationals of developing countries and which began four years ago with an increase in its 14 percent were from African countries. Women capital resources, continued in fiscal 1981 despite accounted for 33 percent of the Young Profes- the continuing economic difficulties throughout sionals recruited, whereas they made up only 17 the world and the resultant pressures on the percent of total recruitment by the Bank. balance of payments of the developing countries. The World Bank Administrative Tribunal, an The Board of Directors of the IFC approved independent administrative tribunal established fifty-six projects with an equity and loan com- as an exclusive remedy for adjudicating staff mitment value of $811 million. This was an grievances, commenced functioning during the increase of 19 percent from the $681 million year. It heard and decided several cases involv- worth of commitments of the preceding year ing individual staff members as well as a case Operating income for the current vear increased involving employment prciples applicable to more than 12 percent to $101 million, surpassing, the staff at large. for the first time, the $100 million mark. Svndica- Another activity that affects the staff should tions, most of them in the form of participations be noted: the Hay Survey. A report of Hay in IFC loans, which are a measure of the Cor- Associates on the survey of comparator compen- poration's ability to attract the assistance of sation levels and practices as of March 1, 1980, others in financing projeCtS with which it is wascompletedinfiscal 1981. Itprovidedthebasis involved, reached $374 million and involved for decisions on the changes in staff compensa- more than fifty financial institutions; $267 tion that were agreed to by the Executive Direc- million in svndications had been completed the tors in June 1981. preceding year. Membership The slowdown in worldwide economic On July 21, 1980, Solomon Islands became a activity, however, combined with operating member of IDA, on September 29, 1980, difficulties in particular cases, had an adverse Dominica and Zimbabwe joined the Bank and effect on net income of the Corporation. There IDA and Sevchelles joincd the Bank: on Octo- were also a leveling of capital gains, higher ber 1. 1980. Djibouti joined the Bank and IDA, administrative expenses, and an increase in bringing the total membership of the Bank to 139 repame arrers with the result that net and that of IDA to 125. income was $20 million; $20.7 million in net i.ncome had been reported for fiscal 1980. At the end of the fiscal vear, action was pend- ing on membership in the Bank for Antigua and Disbursements, which increased 88 percent St. Vincent and the Grenadines. and in IDA for from the total of the preceding year, reached the United Arab Emirates. $587 million (including disbursements for par- ticipants) as a result of the threefold increase in ICSIID commitments during the past five years. At the By June 30, 1981, 83 States had signed the end of the year, the Corporation's investment Convention on the Settlement of Investment portfolio (including undisbursed balances) held Disputes between States and Nationals of Other for its own account was $1,647 million. up from States, and 78 States had deposited their instru- the year-end balance of $1,404 million in fiscal ments of ratification. 1980. In addition, $916 million was held for par- The Annual Report of the International ticipants in IFC financing. The Corporation allo- Centre for Settlement of Investment Disputes cated $19 million to its Reserves Against Losses; (ICSID) provides details of its membership and $10.6 million was allocated the preceding year. activities. The total now in the Reserve is $61.5 million. With respect to the investments approved by IFC the Board of Directors of the IFC, ventures in The International Finance Corporation (IFC) agroindustry, hotels, cement, and pulp and is the World Bank affiliate established to further paper were more prominent than in the recent 18 The World Bank: Fiscal 1981, n Brief past. Manufacturing made up about 46 percent cial banks for the most part-and S951 milion bv of the total projects approved, compared with 44 the sponsors and bv cash generation. percent in fiscal 1980. Member countries continued to take subscrip- The Corporation continued to place greater tions in IFC's capital increase. By the end of the emphasis on its activities in some of the smaller, fiscal year, $373.2 million shares had been low-income countries, so that 29 ventures, or subscribed-about 80 percent of the $480) roughly half, were in countries in which per million allocated. Of this, S283 million had been capita income is less than $626 a year.6 The Cor- paid in, increasing the Corporation's paid-in poration made investments in thirty-four coun- capital to $392 million-$85 million more than tries, in six of them for the first time. last vear. The total cost of approved investments was During the vear, Djibouti. Dominica, the Peo- about $3,340 million for the year. up from $2,377 ple's Republic of the Congo, Seychelles, million the preceding year. Thus, IFC con- Solomon Islands, and Zimbabwe became mem- tributed about 24 cents-of which about half, 11 bers of the IFC, bringing the total number of cents, was raised from other financial institutions members to 119. through svndications-of every dollar of project costs. Of the balance, $1,590 million was raised through other financial institutions-commer- 6 Measured on per capita GNP in 1979 equivalents. 19 Chapter Two The Economic Scene: A Global Perspective The economic shocks of the 1970s discussed in international capital markets to support domes- last year's A lnnual Report continued to reverber- tic development. In the low-income-countries of ate in the world economy during the past year. South Asia high agricultural output led to record Recession in the industrial countries,' continu- growth. The low-income countries of Africa ing high energy costs, inflation, high interest south of the Sahara were the principal exception rates, volatile exchange rates, low growth of to the overall trend: their growth was so low that world trade, and declining prices of primary per capita incomes actually declined.3 products other than petroleum. led to difficulties for manv developing countries. The principal Growth and Inflation in the problems were thus similar to those of the 1970s, Industrial Countries but there were some crucial differences. The The growth of real output of the industrial current downturn came after years of relatively countries declined from an annual increase of 4 slow growth, mounting unemployment, and high percent in 1976-79 to an increase of 1.3 percent in inflation in the industrial countries. It was much 1980. Growth in the United States and the milder than the sharp recession of 1974-75. United Kingdom was negative, and there was a but recovery is expected to be slower because of marked slowdown in Canada, France, and Ger- the clifficulties of reducine inflation, now con- many (see Table 2). The only large countries to sidered a major underlying cause of the weak- attain a real growth rate of 4 percent or more in ness of many economies. There is thus not much 1980 were Japan and Italy. cause for optimism in the global outlook for the The economic slowdown in these countries near term. was accompanied by an increase in inflation. The The resilience shown by many developing countries in the face of so unfavorable an inter- national environment was all the more remark- able. Developing country growth was 4.6 per- cent irn 198(), once a(yain substantiallv higher than cent n 198, onc agan susatalIhge hn Australia. Austria, Belgium, Canada, Denmark. Finland, the 1.3 percent growth of the industrial countries France. Germanr, Iceland.lrecland, Italy. Japan. Luxembourg, (TIable 1). Many developing countries increased the Nethcrlands, New Zcaland. Norway, Ssseden, Switzerland, (Tbe1). Many eeoigcunre nrae the United Kingdom, and the Unitcd St'ates. both their penetration of industrial country 2 those countries with a 1979 percapita GNP ofS401and below. as markets and their trade with each other. They measured in 19180 U.S. dollars. markets and ~~~~~~~~~~~~~These issues are examinied in greater detail in the World Bank's were thus able to continue to borrow from the 1981 World Deilsopmnent Report. Table 1. Real Growth of GNP and GNP per Capita, 1966-80 (Percentage change per car. ) GNP (iNP per capita 1906-76 1977 1978 1979 1919 19606-76 1977 1978 1979 198t0 All developing regions' 6.1 5.8 5.2 5.2 4.6 3.6 3.5 2.8 2.7 2.3 Africa south of the Sahara 5.( 2.9 3.4 3.3 2.3 2.3 11.3 0.7 0.6 -0.4 East Asia and Pacific S.1 8.4 9.4 6.6 3.9 5.5 5.9 6.9 4.3 1.6 Latin America and the Caribbean 5.9 4.8 3.9 5.5 5.4 3.2 2.5 1.6 3.1 3.1 North Africa and Middle East 8.1 1(1.11 6.10 14.6 7.5 5.1 6.6 2.7 1l.t 4.2 South Asia 3.7 7. 1 7.0 -2.6 7.4 L4 4.9 4.8 -4.9 5.0 More advanced Mediterranean countries 6.0 4.1) 4.1 2.6 1.4 4.5 2.5 2.6 1.1 -0.1 Industrial countries' 4.2 3.8 4.1) 3.5 1.3 3.3 3.2 3.3 2.8 0.6 , Prclim,. ars. "Fur country coyvcrac. sce (icIQral Notc' to Ane11cx 'lablcs and tiotnotte to Statisticail Annex t,,blc 1. Note that all dceveloping-country oil cxportcrs, as well as the 1,i capital-surplus oil exporters. arc includcd. 'For country coicr.e,i. sce fuslnoic To Slatistical Annex l"ible I 'i'hc growth rates fo,r indastrial countries rcfer to GDP rather than GNP. Sourcc: World Baiik. 20 The Economic Scene: A Global Perspective Table 2. Industrial Countries: Real Growth 1981 has substantially eroded the competitive and Inflation, 1977-80 position of the United States vis-a-vis Europe (Percentage change per year.) and, to a lesser degree, vis-a-vis Japan. 1977 1978 1979 1980' To judge from the experience of the first few months of 1981, it appears that slow growth will Real GDP continue in the industrial countries through the Canada 2.7 3.6 2.8 0.1 year. Government fiscal and monetary policies United States S. 1 4,4 2.3 -0.2 Japan 5.4 5.9 5.9 4.2 remain restrictive because of widespread con- France 2.8 3.8 3.3 1.3 cern over inflation and trade deficits. Rates of Germanv 2.7 3.2 4.5 1.8 inflation seem to be declining, partly helped by Italy 2.0 2.5 5.0 4.0 the easing of real prices of oil and other primary United Kingdom 1.3 3.1 1.5 1.8 products. In some countries. inflationary pressures are alreadv lessening partlv because of In,dustrial Coutnrries' 3.8 4.0 3.5 1.3 the willingness of employees in some countries GDP Deflator to accept a reduction in real wages. Canada 7.1 6.5 10.5 10.5 United States 6.0 7.1 8.8 819 Growth in the Developing Countries Japan 5.6 3.9 2.0 3.2 In 1980 the real growth in gross national France 9.1 9.3 10.3 11.2 product (GNP) of the developing countries (oil Germany 3.8 3.9 3.8 5.0 importers and oil exporters together) was much Italy 18.9 13.3 15.2 20.4 higher--4.6 percent-than the 1.3 percent in the United Kingdom 13.7 10.3 14.6 18.8 industrial countries. Developing countries as a Industrial Countries' 7.0 6.7 7.5 8.6 group grew less rapidly in 1980, however, than 'Preliminarv. during 1974-79, which itself was a period of 'The weights are the USS GDP of each countrv divided by the slower growth than the record years of 1966-73 total USS GDP for the industrial countries. See footnote I for (see Table 1). Industrial Countries' coverage. Source: World Bank and OECD. Regions showed mixed results. Even within regions there were wide differences in growth rates. Many of the countries at the lower end of the middle-income' spectrum experienced average rate of inflation4 in the industrial coun- serious problems, particularly when primary tries was about 8.6 percent in 1980, up from an product prices began to decline. Others, par- average of 7.0 percent a year between 1976 and ticularly the semi-industrial exporters of 1979. Inflation in 1980 did, however, remain manufactures, have been able to adjust quite below the double-digit levels of 1974-75. Infla- rapidly to changing circumstances. tionary pressures were particularly strong in The gross national product grew so slowly in Canada, France, Italy, andthe UnitedKingdom. Africa south of the Sahara (excluding South In the last-named country, such pressures eased Africa) that per capita income declined. In significantly in the second half of .1980, however. Korea, a precipitous decline of production Germany and Japan, both of which adjusted pulled down the average growth rate in East rapidly to the second large increase in oil prices, Asia and the Pacific. Some of the other East were the onlv major industrial countries to bring Asian economies, notablv the smaller export- inflation down to pre-1973 levels. oriented ones, however, continued to grow at 6 To help fight mounting inflationary pressures to 9 percent. at home, the larger industrial countries adopted The countries of Latin America and the Carib- more restrictive monetary policies. In addition, bean maintained the previous year's fairly strong most industrial countries achieved some fiscal average growth rate of GNP. In North Africa and restraint. Unemployment in the member coun- the Middle East, growth remained relativelv tries of the Organisation for Economic Co- high, also, with Syria and Egypt performing par- operation and Development (OECD),which has ticularly well. been rising secularly in recent years, is now The growth in the purchasing power of the expected to exceed 25 million by late 1981, repre- exports of most oil-importing developing coun- senting nearlv 7.5 percent of the labor force. tries was held down in 198(1 by both a slower Restrictive monetary policies were accom- expansion of their export volume and a decline in panied in many countries by high and volatile interest rates. Fluctuating interest rates have been followed by large swings in exchange rates , Inflation is measured as the weightel aseragc of national cur- rency gross domnestic product (GDP, deflarors. T'he weights used introducing an element of uncertainty in interna- are the current vear GDP shares expresscld in 1978 U.S. dollars. tional markets. For example, the dollar's rapid 5 Nliddle-incomc countries are dcincd as those developing coun- trles witha 1979 GNP per capita ahov S40ll. as measured in 1980 appreciation from the fall of 1980 to the spring of u.s. dollars. Current-Account Balances and The r Financing 21 their terms of trade. In the last two years, the oil- will be further damage to the developing coun- importing developing countries increased their tries and to the developed countries in the longer foreign borrowings (with a greater reliance on run; not only will their exports be hurt, but also short-term borrowing and reserve-related the pattern of trade and the sectoral distribution credit, primarily financing from the Interna- of investment in both developed and developing tional Monetary Fund (IMF)), and many drew countries will be distorted. down, or at least stopped accumulating, interna- tional reserves. At the same time, the growth Current-Account Balances rate in the volume of their imports increased. and Their Financing Interest payments on their larger external debt During the past two years, the disturbances in also rose. the international economy-large increases in Recovery from the previous year's bad harvest the price of oil, high rates of inflation, and slug- was the main cause of last year's 7.4 percent gish growth in the industrial countries and in increase in the gross national product of South world trade-have been reflected in a widening Asia, but there has also been a long-term of global surpluses and deficits in the balance of improvement of agricultural performance there payments. The wave of oil price increases in 1979 that has boosted the region's income growth and 1980 produced a sizable gain in the terms of despite increases in the cost of imported oil. In trade for the oil-exporting countries. The conse- contrast, low growth in Southern Europe quent surplus of the six capital-surplus oil- brought down the total developing country exporting countries6 on current account, exclud- average. ing official transfers, is estimated to have been The problems of structural adjustment con- more than $100,000 million in 1980. By contrast, fronting the oil-importing countries remain in 1978, they had a surplus of only $19,000 severe. These countries face a dilemma: if they million. The other oil-exporting countries7 were rely heavily on external borrowings-presum- able to eliminate a deficit of almost an equal ably primarily from private sources-they may amount (Table 3). face problems in managing their debt, although The current-account deficit of the indus- continued prudent borrowing could help them trialized countries was $40,000 million in N980; avoid sharp economic downturns. On the other these countries had a surplus of $30,000 million hand, if they rein in their import demand sharply in 1978. The current-account deficit of the oil- so as to make the necessary economic adjust- ments, they will almost inevitably reduce their own growth rates, while contributing to the con- I Iraq, Kuwait, Libya. Qatar, Saudi Arabia, and the United Arab traction of output in the industrial countries. If 7 Algeria. Angola, Bahrain. Bolivia. Brunei, Congo. Ecuador, protectionism against products from the Egypt, Gabon. Indonesia. Iran, Malaysia. Mexico. Nigeria. developing countries is permitted to rise, there Venezuela. Table 3. Current-Account Balances. 1970-80 (UJS$ billions, at current prices.) Developing countries Centrall Low-income Middle-income Capital-surplus Industrial planned Statistical oil importers oil importers Oil exporters oil exportersO countries economies discrepancy 1970 -1.7 -7.0 -2.2 2.8 12.1 1.7 5.7 1971 -2.5 -8.2 -2.9 n.a. 15.5 n.a. n.a. 1972 -1.5 -3.8 - 3.6 1.9 16.0 n.a. n.a. 1973 - 3.1 - 4.2 - 2.6 6.7 18.9 n.a. n.a. 1974 -6.0 -27.1 19.3 43.3 -8.5 n.a. n.a. 1975 -5.4 -33.2 -2.5 30.8 22.0 -7.0 4.7 1976 -2.4 -24.4 -0.3 36.3 3.9 -3.5 9.6 1977 - 1.6 - 21.3 - 5.5 32.9 - 1.5 - 1.1 1.9 1978 -5.1 -20.4 -17.6 18.8 29.9 -0.2 5.4 1979 -7.2 -37.2 5.1 55.7 -9.5 -0.8 6.1 1980' - 10.9 -58.7 1.0 102.2 -39.7 -0.1 -6.2 "Excluding official transfers. bOnly Saudi Arabia. Libya, and Iraq are included for 1972. Estimatte. Source: World Bank. 22 The Econom c Scene: A Global Perspective importing developing countries is estimated to The changes in the current-account positions have been about $70,000 million in 1980. an were accompanied by new patterns of financial increase of some $44,000 million from their 1978 flows. During 1979 and 1980. the capital-surplus deficit. Their deficit in 198(0 was equal to 4.9 oil exporters and the oil-exporting developing percent of GNP, up from 2.3 percent in 1978 and countries are estimated to have acquired about higher than in any vear of the 1970s except 1975, $165,000 million in net external assets. It appears when it was 5.2 percent. that they deposited somewhat more than half The current-account deficit between 1978 and that amount in banks, contributing to the pool 1980 of the oil-importing developing countries available for recycling to the deficit countries was largely due to higher costs of imported oil, a through financial intermediaries. Most of the heavier debt-service burden, and, for those remainder of their surplus was used for direct countries that depend upon exports of cocoa and lending to industrial countrv governments and coffee. a decline in prices of primary products. for the acquisition of long-term assets in Payments for net imports of oil rose by an esti- industrial countries, although direct loans and mated S44,000 million, or 141 percent, while the other flows to developing countries also volume of net imports of oil remained at about increased substantially. their 1978 level, reflecting both increased domes- Medium-term and long-term net borrowing tic production and conservation of oil by the oil by the oil-importing developing countries from importers and their slower growth in GNP. For financial institutions and other private sources the oil-importing developing countries, interest was only slightly higher in 1980 than in 1978, payments on medium-term and long-term debt according to preliminarv estimates. Borrowing are estimated to have risen by more than $10,000 plus direct investment flows, the latter having million (85 percent) during this same period; increased modestly in this period, totaled an half the increase was caused by higher levels of estimated $33,000 million net, up from $31,000 debt and half was the result of higher average million in 1978. Although the financial markets interest rates. were not disrupted in 1980 bv the strains of addi- Other factors, however, partially offset the tional balance-of-payments financing for both higher costs of imports and interest. For some developing and industrial countries, as some had developing countries (for example, Egypt, feared, the spreads on publicized loans to some India. Pakistan, Portugal, and Yugoslavia), developing countries did increase noticeably. workers remittances, particularly from Europe Private sources continued to provide the bulk of and the Middle Eastern oil-producing countries, the flows of external capital to the developing are an important source of foreign exchange, countries as a group, however, if not to the low- reaching about $24,000 million in 1980. In addi- income countries among them. It is estimated tion, receipts of investment income from that concessional flows were equivalent to about foreign-exchange reserves and other external two thirds of the current-account deficit of low- assets increased as interest rates rose. income oil importers in 1980(. Table 4a. Balance-of-Payments Financing of Oil-importing Developing Countries. 1978 and 1980 Us5 billions.) 1978 1980)t Changc (198)0-1978) Current-account balance - 25.5 - 69.6 - 44.1 Financing Medium-term and long-term capital. net 46.7 55.4 8.7 Official loans and grants (15.5) (22.2) (6.7) Private long-term loans alnd direct investrent (31.2) (33.2) (2.0) Other capital and chanmes in reserves -21.2 14.3 35.5 Total financing 25.5 69.6 44.1 t Estintate 'Includes crrors dInd (fMISSl10lS. Sourcc: World Bank. External Debt 23 Table 4b. Balance-of-Pavments Financing of Low-Income Oil-Importing Developing Countries. 1978 and 1980 (US$ billions.) Change 1978 198(1 (198(0-78) Current-account balance - 5.1 -10.9 - 5.8 Financing Medium-term and long-term capital, net 6.2 8() 1.8 Official loans and grants (5.4) (7.3) (1.9) Private long-term loans and direct investment (0.8) (0.7) (-0.1) Other capital and changes in reserves" - 1.1 2.9 4.0 Total financing 5.1 10.9 5.8 -Estimate. blncludes errors and omissions. Source: World Bank. Table 4c. Balance-of-Payments Financing of Middle-Income Oil-Importing Developing Countries, 1978 and 1980 (US$ billions.) Change 1978 198( (1980-78) Current-account balance --20.4 - 58.7 - 38.3 Financing Medium-term and long-term capital. net 40.5 47.4 6.9 Official loans and grants (10.2) (15.0) (4.8) Private long-term loans and direct investment (30.3) (32.4) (1.9) Other capital and changes in reserves -20.1 11.3 31.4 Total financing 20.4 58.7 38.3 d Estimate. btncludes errors and omissions. Source: World Bank. Net official flows to oil importers are esti- 13 percent, to approximately $416,000 million. mated to have been more than $22,000 million in The growth rates of 1979 and 1980 were well 1980, an increase of almost $7,000 million from below the average annual growth of 23 percent the 1978 level. Net concessional loans and between 1975 and 1978. This slowdown in the grants, exclusive of technical assistance, growth of developing country debt, however, has accounted for about three quarters of total offi- apparently already begun to reverse itself. By cial flows for both years. Short-term borrowing the last quarter of 1980, medium-term and long- and reserve transactions took on a larger role in term borrowing had stepped up, and gross financing the current-account deficits of the oil publicized borrowing in the international capital importers. markets during the first quarter of 1981 was dou- ble that of the first quarter of 1980. External Debt The data on debt outstanding for 1979. the The growth of the developing countries' latest year for which detailed figures are avail- medium-term and long-term debtm-from public and private sources, in foreign currency-has slackened. In 1979, that debt grew 17 percent, s See General Notes to Annex Tables for country coverage. Note. however, that the discussion in the text includes private reaching $369.00)) million, and in 1980 it grew by nonguaranteed debt, whereas the Annex does not. 24 The Economic Scene: A Global Perspective able, indicate a continuation of the growing the developing countries. Debt service, importance of borrowing from private sources therefore, has absorbed a growing share of new and the consequent hardening of average terms borrowings. While gross disbursements that was particularly evident in the later years of increased only 8 percent in 1979, total debt-ser- the 1970s. Medium-term and long-term debt vice payments increased 30 percent. This meant owed to private creditors, principally commer- that there was an actual decline in net transfers of cial banks, increased 20 percent in 1979; its resources; in contrast, annual growth of net annual growth between 1975 and 1978 had been transfers between 1975 and 1978 had averaged 16 27 percent. By the end of 1979, 63 percent of all percent. debt was owed to private creditors; the percent- External debt and debt service remain con- age in 1975 was 56. The share owed to official centrated in a few developing countries, typi- bilateral sources declined from 33 percent in cally those with relatively strong export sectors, 1975 to 25 percent in 1979, while that owed to large international reserves, or rapid growth. multilateral institutions remained more or less Most of the principal debtors are oil-exporting constant, at 11-12 percent. countries-Algeria, Egypt, Indonesia, Mexico, Partly as a result of domestic anti-inflationary and Venezuela-or are major exporters of policies in the industrial countries, interest-rate manufactures-Brazil, Israel, Spain, and rises have spread worldwide. There has been a Yugoslavia. hardening of average terms of new borrowing Most low-income oil-importing countries that has increased the debt-service payments of depend heavily upon official sources for financ- Table 5. Public and Private Debt of the Developing Countries (USS millions.) End 1970 End 1975 End 1978 End 1979 End 1980 a Disbursed debt outstanding, by region More advanced Mediterranean countries 9,193 29,114 56,085 69,309 79,000 Africa south of the Sahara 7,028 14,989 27,164 32,326 38,000 North Africa and Middle East 4,263 13,884 35,677 42,202 46,000 East Asia and Pacific 8,836 24,623 45,711 51,920 58,000 South Asia 11,961 20,686 28,895 30,116 33,000 Latin America and the Caribbean 21,163 64,843 123,362 143,308 162,000 Total 62,444 168,139 316,894 369,180 416,000 Disbursed debt outstanding Official sources 34.877 74,241 122,189 136,177 154,000 Private sources 27.567 93,898 194,705 233,003 262,000 Total 62,444 168,139 316,894 369,180 416,000 1970 1975 1978 1979 1980 Debt service Official sources 2,519 5,481 9,168 11.480 14,000 Private sources 5,329 18,712 42,723 55.704 62,000 Total 7,848 24,193 51,891 67.184 76,000 Net disbursements Official sources 3,862 12,208 14,711 15J152 18,000 Private sources 4,147 20,445 38,557 38,185 35,000 Total 8,009 32,653 53,268 53,337 53,000 NOTE: Details may not add to totals because of rounding. Estimate. Includes some lending by official sources that is not guaranteed by a public body in the borrowing country. Source: World Bank. Official Development Assistance 25 Table 6. Debt and Debt-Service Indicators of Public Debt 1970 1975 1979 Disbursed debt as a % of GNP Oil importers 12 13 16 Low-income countries (17) (19) (20) Middle-income countries (11) (12) (15) Oil exporters 14 16 25 Debt service as a % of GNP Oil importers 1 2 2 Low-income countries ( 1) ( 1) ( 1) Middle-income countries ( 1) ( 2) ( 2) Oil exporters 2 2 5 Debt service as a % of exports of good and services Oil importers 8 8 10 Low-income countries (14) (12) ( 9) Middle-income countries ( 8) ( 8) (10) Oil exporters 11 9 19 Source: World Bank. ing, since few of them qualify for significant the remainder being nonconcessional official levels of borrowing from private sources on com- lending. mercial terms. In 1979, their debt increased only Despite the general soundness of the debt 6 percent, to $43,000 million. Of this, 87 percent position of most developing countries, several was owed to official creditors and fully 78 percent countries had to seek debt relief under the had been obtained on concessional terms. auspices of the Paris Club." Countries that have The debt of the middle-income oil-importing recently resorted to the Paris Club include countries increased steadily, a trend consistent Liberia (1981). Madagascar (1981). Sudan (1980), with the expansion of their economies. By the Togo (1981), and Zaire (1980). Some countries end of 1979, the total debt of these countries have also recently had agreements with commer- amounted to $212.000 million, 70 percent of it cial banks (Nicaragua, Sudan, and Zaire), while owed to private creditors; 15 percent had been Pakistan arranged, through the Pakistan Consor- obtained on concessional terms. The significant tium, a rescheduling of its official debt to Consor- increase in their debt service in recent years is tium creditors. Generally, debt relief has been the result of the growth of their debt, some pre- extended for periods of twelve to eighteen payments, and the harder average terms of new months, with repayment of rescheduled debt borrowing. due over a period of seven to ten years. Interest Commercial banks now make most of their charges are usually set at the rate of new loans of loans at variable interest rates. Although loans the type being refinanced. made in the financial market can have significant advantages, those with variable interest rates do require careful debt management. During a time Official Development Assistance of rapidly rising interest rates, as has been Net disbursements of Official Development experienced in the past year, debt service can Assistance (ODA)-grants and concessional increase suddenly and dramatically. The con- loans-from member countries of the Develop- verse is, of course, true when interest rates fall. For those countries with reserves invested in the capital markets, the effect of rising interest rates 9 The oil-exporting countries covered under the Bank's Debtor least e pariallyoffse by vrtue f the Reporting System are : Algeria, Bahrain, Bolivia, Congo, can at least be partiallv offset by virtue of the Ecuador. Egypt, Gabon, Indonesia, Malaysia. Mexico. Nigeria, higher return they receive. Oman. Peru, Syria, Trinidad and Tobago, Tunisia, and higher return they receive. ~~~Venezuela. The oil-exporting developing countries9 have "'The Paris Club is the name given to the ad hoc meetings of used their strong export bases to borrow heavily. Western creditor governments that. since 1956. have arranged. when necessary, for the renegotiation of credlitor-guaranteed In 1979, their total disbursed debt was $114,000 suppliers' credits. Since then, it has handled the majoritv of million, 68 percent of it owed to private creditors renegotiations of official and officially guaranteed debt. More than a dozen debtor countries have been involved through the and 21 percent obtained on concessional terms, years. 26 The Economic Scene: A Global Perspective Table 7. Net Disbursements of Official Development Assistance, 1976-80 (Current USS billions.) 1976 1977 1978 1979 198() DAC countries 13.8 15.7 20.0 22.3 26.6 OPEC countries 5.6 5.9 4.3 6.1 7.0 Centrallv planned economies ' 1.3 1.3 1.3 1.8 1.8 Preliminary. Estimate. c Estimate. Includes Bulgaria, Czechoslovakia. German Democratic Republic. Hungary. Poland, Romania. and USSR. Source: OECD. For details, see Table 16 in the 1981 World Development Indicators. ment Assistance Committee (DAC)" to the were in the form of grants. Their ratio of aid to developing countries reached an estimated GNP is much higher (1.36 percent in 1980) than S26,600 million in 1980. This amount represents that of the DAC countries. The ratio of aid to a nominal increase of 19 percent from the 1979 GNP of the six capital-surplus members of level, reaching 0.37 percent of their aggregate OPEC was 2.68 percent in 1980. Kuwait, Saudi GNP. In the 1970s, the percentage of ODA to Arabia, and the United Arab Emirates were the GNP had remained fairly constant between 0.33 biggest OPEC donors in dollar volume, and percent and 0.36 percent."t Denmark, the their aid accounted for 3.03 percent of their Netherlands, Norway, and Sweden are the only GNP. members to have achieved the 0.7 percent target as set by the UN for the Second and Third Development Decades. In 1980, more than three quartersmof new commitments and more than tt Australia, Austria, Belgium. Canada, Denmark, Finland, quarters ofnwcm imnsadmr hn France, Germanv, Italy. Japan. tbc Netherlands, New Zealand, half of net disbursements were grants, and Norway, Sweden, Switzerland, the United Kingdom, the United States, and the Commission of the European Communities. disbursements in 1980 appear to have continued 12 The improvement in 1980 was to some degree a result of the the shift of the 1970s to the least developed coun- bunching of letters of ceedit so the mUltilateTal institutions; in with a mre limied shifttoward he low- addition, some DAC members base been increasing their assis- tries,'3 with a more limited shift toward the low- tance in recent years. income developing countries. 13 Afghanistan. Bangladesh, Benin. Bhutan, Botswana, Burundi, countries. ~~~~Cape Verde, Central African Republic. Chad, Comoros. In 1980, net disbursements of ODA by the Ethiopia, The Gambia, Guinea, Haiti. Laos, Lesotho. Malawi, member countries of the Organization of Maldives, Mali, Nepal, Niger. Rwanda, Somalia, Sudan, r, r . . 14Tanzania, Uganda. Upper Volta. Western Samoa. Yemen Arab Petroleum-Exporting Countries (OPEC)1 Republic, and People's Democratic Rcpublic of Yemen. amounted o S7,000 illion; i that sam year, t AlgeTia, Ecuador, Gabon. Indonesia, Iran. Iraq, Kujwait, Libya. amounted to $7,000 million; in that same year, Nigeria, Qatar, Saudi Arabia. the United Arab Emirates, and an estimated four fifths of commitments of ODA Venezuela. Table 8. Total Merchandise Exports, 1965-80 (US$ billions at constant 1978 prices.) Average annual growth rates (%) 1965 1970 1977 1978 1979 1965-70 1970 80h All developing countries 138 169 235 252 261 4.2 4.6 Low-income 13 16 24 27 26 4.2 5.5 Middle-income 125 154 211 226 235 4.2 4.5 Industrial countries 301 512 795 840 878 11.2 6.2 World ' 542 821 1,240 1,307 1,374 8.6 5.7 World (current US$ billions) ' 186 314 1,131 1,307 1,668 11.0 21.1 Note: Oil-exporting developing countries 80 86 91 89 89 1.7 -0.3 Oil-importing developing countries 58 83 145 163 173 7.3 8.1 a Preliminary. Estimate. Also includes countries having centrally planned economies and the capital-surplus oil exporters. Source: World Bank. World Food Stuotion 27 World Trade In dollar terms, world merchandise trade Petroleum Export Prices increased by nearlv 30 percent in 1980. In US$/Barrel (FOB) volume, the increase was less than 4 percent. First quarter 1918-first quarter 981 The reduced growth in volume in 1980 was pri- marily a result of a decline in the amount of petroleum traded, although the growth of trade in manufactures also slowed. The share of fuel in the total value of merchan- 41 S dise trade rose from 17 percent in 1978 and 20 A percent in 1979 to almost 25 percent in 1980; in /\ pot contrast, its share in the total volume dropped I e\ / from 17 percent in 1978 and 1979 to 16 percent in / \ O Average 1980. in response to higher petroleum prices, / Saudi conservation, and recession in the industrial 30 A/ rabian countries. / /Lght Because of that recession and as a result of the / significant appreciation of the U.S. dollar against most other major currencies, prices (in current U.S. dollars) of both primary com- modities and manufactured goods, which had 20 - reached a peak in mid 1980, have recently / declined. The World Bank monthlv average price index of thirty-three commodities (exclud- ing petroleum) declined almost 10 percent (in current dollars) in the first five months of 1981. Fluctuations in the prices of such commodities as l 0 I sugar, copper, and tin have been severe. 1918 1919 1980 1981 Spot Weighted average ol spol price quotations for OPEC export Petroleum petraleur grades Average OPEt Average price ef twenty-five grades or OPEC expert The industrial countries entered calendar 1980 petroleum. orfic al srelilg prices to b loading ports with record high inventories of petroleum. Oil Saud Arabian Light 33 4 ' API crude stream. official seling price prices weakened and premiums charged above Iob,RasTanura the official selling prices (OSPs) tapered off toward the middle of the vear. The situation changed in September 198(1 with the outbreak of hostilities in the Persian Gulf. Damage to The supply situation facing the oil-importing petroleum installations in both Iran and Iraq developing countries, however, remains pre- brought the combined exports of these countries carious. Since 1978, supplies of petroleum almost to a standstill. Although several members imported by the developing countries have been of OPEC increased their production to compen- under considerable strain. Before December sate for this, world petroleum production 1978, Iran and Iraq had supplied-on the declined about 3.8 percent in 1980-from 63.2 average-almost 30 percent of the crude oil million barrels a day (mbd) in 1979 to 60.8 mbd imported by the oil-importing developing coun- in 1980-as did consumption. Average OPEC tries. Some countries were even more dependent prices for crude oil rose by 63 percent in 1980 (46 upon them: supplies from Iran and Iraq had met percent in real terms), as compared to the pre- about 70 percent of the import needs of Turkey: vious year. 60 percent of those of Cyprus, India, Kenya, Aided bv conservation measures, reduced Morocco, and Tanzania: 50 percent of those of economic activity, and favorable weather condi- Chile, Yugoslavia, and Zambia; and 40 percent tions, oil consumption in the industrial countries of those of Brazil and Spain. Many countries fell about 7 percent in 1980. In the first quarter of were forced to purchase supplies from the signifi- 1981. world consumption of oil (excluding the cantly higher-priced spot market. centrally planned economies) declined 4 percent from that in the first quarter of 1980. The decline World Food Situation was even sharper in the industrial countries. World production of cereals has been main- Overall petroleum prices have softened, as pro- tained at about 1,500 million tons in recent years, duction remains relatively high and buyers seem but cereal consumption continued to increase, in reluctant to increase their stocks. line with population and income growth. In 28 The Economic Scene: A Global Perspectve 1980, as production declined somewhat, prices The Special Session agreed on a new IDS call- rose and world stocks of cereals were drawn ing for a growth rate of 7 percent for the develop- down. The below-trend production levels largely ing countries for the decade of the 1980s and a resulted from reduced outputs in the temperate "rapid and substantial increase" in Official zone of the Northern Hemisphere, mainly in the Development Assistance by donor governments U.S. and China; the developing countries did "with a view to reaching, and where possible, better, with the countries of South Asia, in par- surpassing" the target of 0.7 percent of the GNP ticular, producing record crops in 1980/81. Prices of the donor countries. The new strategy was began to ease in the early months of 1981 as a endorsed by the 35th Session of the General result of good crop forecasts in major producing Assembly, and the Third Development Decade regions, lower livestock production, and higher was thus launched. On the issue of global interest rates. negotiations, however, agreement proved to be Cereal imports of the developing countries more elusive. have risen rapidlv in recent years. Net imports of The delegates broadly agreed on negotiations grains by the developing countries totaled over to cover trade, energy, raw materials, develop- 50 million tons in 1980/81, at a cost of about ment finance, and monetary issues. Questions of $10,000 million. This contrasts with their net procedure and agenda have not, however, been grain imports of 20 million tons in 1970/71, at a fully resolved, particularly on the appropriate cost of $2,000 million ($5,000 million in 1980 relationship between the proposed central dollars). Almost all of the increase was negotiating body and the specialized agencies. accounted for by middle-income countries, which have been increasing their feedgrain North-South Summits. In the meantime imports by 10 percent per year. The low-income preparations have begyun for a North-South countries in South Asia improved their grain economicsummittobeheldinCancun,Mexico production and reduced their imports substan- in October 1981 sponsored bv President Jose tially in the 1970s. However, the food situation Lopez-Portillo of Mexico and Chancellor Bruno throughout much of sub-Saharan Africa has Kreisky of Austria. The meeting, it is expected, been deteriorating. will be attended by twenty-two heads of state and Overall, the world food situation has governments from the developed and develop- improved substantially in comparison with the early 1970s. However, it continues to be charac- ing countries. teried y prduclioninsabilty n rnjor Other international fora are also giving terized by production instability in major attention to North-South issues. The problems importing countrles, especially the USSR, facing developing countries were among the together with lagging production and poor main subjects discussed at the Western economic mfrastructure and dlstributon capacities i summit of seven major industrialized countries many importing developing countries, held in Ottawa in July 1981. The Commonwealth heads of governments also propose to focus North-South Dialogue attention on the problems facing developing The North-South dialogue continued in countries at their meeting scheduled to be various international fora during the past year. held in Melbourne, Australia, in September The publication of the Brandt Report by the 1981. Independent Commission on International Development Issues (the Brandt Commission) South-South Cooperation. The events of the contained a number of suggestions, including an past year have given impetus to efforts at action programme for the least developed cooperation among the developing countries. countries, special efforts to increase production Deamogi the developing count of food and energy in the developing world, and espe ideogia dferences differing coun- an economic summit of heads of state on North- -c c nees and the geogra Soltion South issues. of countries from one another, South-South cooperation has become an important objective of the developing countries. Following earlier The United Nations. The Eleventh Special meetings in Geneva and Vienna of developing Session of the UN General Assembly began in countries represented by the Group of 77 August 1980 to consider a new International (G-77), the Foreign Ministers of the G-77 met at Development Strategy (IDS) for the Third Caracas, Venezuela, in May 1981 to consider Development Decade. The second major item measures to further the framework of economic of the Special Session was to reach agreement on cooperation among developing countries in the an agenda for a special UN conference on global areas of trade, technology, food and agriculture, negotiations to be held under UN auspices in energy, raw materials, finance, and industrializa- New York in 1981. tion. Agreement was reached on the need to The Common Fund and Internationa. Commodity Agreements 29 increase efforts for a Generalized System of ing countries facing greatly enlarged current- Preferences for trade among developing coun- account deficits. In this context, the Committee tries. It was also agreed to establish a mechanism urged the Executive Directors of the Bank to for the coordination, implementation, and continue their efforts to reach a consensus on the monitoring of programs for economic coopera- scale of World Bank activity appropriate to the tion. For this purpose. a small technical group circumstances of the early 1980s and to seek would be established through special arrange- means for future financing of that activity. The ments with governments of developing Committee also decided, in principle, to countries. establish a task force to carry forward and widen the study of the continuing problems affecting The Development Committee. During the the volume, quality, and effective use of conces- past fiscal year, the Development Committee sional flows. The special problems of the oil- (the Joint Ministerial Committee of the Boards importing developing countries were par- of Governors of the World Bank and the Interna- ticularly noted. The Bank's initiative in expand- tional Monetary Fund on the Transfer of Real ing lending operations in the energy sector was Resources to Developing Countries) held three supported by the Committee as well as the need meetings. The first was in September 1980 in to examine ways to mobilize additional rcsources Washington, D.C. At the second, in October for energy development, both through existing 1980, also in Washington D.C., David Ibarra mechanisms and through a possible new affiliate Munoz, Secretary of Finance and Public Credit or facility. of Mexico, was elected Chairman to succeed At the'Libreville meeting. the Committee also Cesar E. A. Virata, Minister of Finance of the reaffirmed its desire to plav an active role in Philippines, whose term had expired. Hans E. regard to matters within its competence in the Kastoft was selected Executive Secretary of the context of the United Nations global negotia- Committee. The third meeting was held in May tions on North-South issues. 1981 in Libreville, Gabon. At its September 1980 meeting, the Commit- Law of the Sea. There had been some hope tee reviewed the prospects of the developing that the UN Law of the Sea deliberations might countries in the light of the World Bank's World be successfully concluded on most issues of the Development Report and other background proposed treaty. This was a natural expectation papers. Consideration was given to the pro- following the lengthy negotiations that produced posals made by the Group of 24 in its Program of compromises in 1979 on a number of kev issues Immediate Action and by the Brandt Commis- related to navigation rights: pollution control, sion. and maritime boundaries, but particularly to the The Committee also reviewed a report of a regime of seabed mining beyond national task force on private foreign investment. The jurisdictions. This covered the basis and limita- report recognized the significant role to be tion for the production of manganese nodules, played by private foreign investments in compensation to the developing countries ad- economic development of the developing coun- verselv affected by nodule mining, and arrange- tries. ments on the sharing of the "heritage of The Committee focused attention on means mankind" between those with the expertise and for financing the capital requirements of the the resources to exploit such wealth and the developing countries by way of concessional and developing countries. nonconcessional flows and private foreign Resolution of all issues proved premature. investments. It urged an increased flow of con- however, when the new United States cessional funds to the low-income countries, administration requested a delay so that it could drawing particular attention to the gravity of the reconsider its approach. The Conference is situation facing those countries with the delay in expected to reconvene later in the year. bringing the Sixth Replenishment of IDA into effect. A task force set up on nonconcessional flows by the Development Committee has been The Common Fund and International examining the possible means of enlarging the Commodity Agreements flow of nonconcessional funds to the developing The Agreement Establishing the Common countries, both through the medium of the inter- Fund for Commodities was adopted in June 1980 national financial institutions and directly. The by the Fourth Session of the United Nations task force expects to continue its work at a meet- Negotiating Conferencc on the Common Fund. ing of the Development Committee in Septem- Thirtv-four countries had signed the Agreement ber 1981. by June 3(0. 1981 it will go into effect when it has The Libreville meeting focused attention on been ratified by ninety countries that account for the urgent and immediate plight of the develop- at least two thirds of the $470 million in capital 30 The Economic Scene: A Global Perspective directly contributed. Although March 31, 1982, were reactivated, after a decline of 33 percent in is the deadline for approval and ratification of coffee prices during 1980. A global export quota the Agreement, it is unlikelv to begin operations of 57.3 million bags was agreed upon, together before mid 1983. with an intervention price range of 115/120 to The Common Fund has two accounts. 150/155 cents a pound. The Agreement will Through the First Account (S400 million), it will expire in September 1982. contribute to the financing of internationally Release of the special stocks held under the coordinated national stocks within a framework International Sugar Agreement had little effect of International Commodity Agreements on the sugar price rise of 1979-80. The effective- (ICAs). Through the Second Account ($350 ness of the Sugar Agreement. signed in 1978, is million), it will attempt to improve the export restricted because the European Economic earningspotentialofthedevelopingcountriesby Community (EEC), which has become an promoting research and development of com- important exporter. has not vet signed it. modities and through improvements in produc- Discussions on an International Tea Agree- tivity, processing, and marketing. ment, which have been going on since 1978. have The ultimate scope and size of the First made little progress. The sticking point has been Account will depend upon the number of cur- the allocation of the shares of the export market rent International Commodity Agreements that and, hence, of export quotas. The potential for enter the Fund and on the number of new ones conflict between long-standing established pro- created under the Fund's aegis. Its effectiveness ducers and new, growing exporters whose costs willdependupontheusefulnessoftheobjectives are often lower-the source of many of the of the Agreements and upon their success in problems inherent in forging international com- meeting these objectives. Their primary objec- modity agreements-can be observed in these tive is price stability. It must be recognized, discussions. however, that the attainment of price stability The successive tin agreements have been the does not always ensure income stability, the lat- most successful of all the International Com- ter being the main concern of both producers modity Agreements. Implementation of the and governments. Sixth International Tin Agreement has been Little progress was made during 1980 in bring- held up, however, because of disagreements be- ing new Agreements into being. Following initial tween the United States and the producing coun- agreement in October 1979, the new Interna- tries on the size of the buffer stock and the extent tional Natural Rubber Agreement came provi- to which exports are to be controlled. sionally into force in October 1980. Its aim is to Discussions of an ICA for cotton have taken stabilize prices within a specified range through place under the UNCTAD Integrated the operation of a buffer stock. So far, however, Programme for Commodities, but there has there has been no opportunity to stabilize prices, been no sign of agreement. for the price of rubber has been higher than the ceiling price set under the Agreement. The Rub- Lome II ber Agreement is the first to provide for associa- The second Lome Convention came into tion with the Common Fund. Its novel feature is effect January 1, 1981. Under the new conven- its sharing of the costs of buffer stocks equallv tion. almost all exports of sixty countries of between consuming countries and producing Africa, the Caribbean, and the Pacific (ACP) countries bv means of direct contributions from have free entry into the European Communities their governments. (EC), somewhat more than under Lome I. The basis for a new International Cocoa The "Stabex" arrangement for stabilizing Agreement was established in November 1980, export revenues by income transfers in the event the previous Agreement having ended in March of shortfalls in export earnings has been 1980. The Ivory Coast, a major producer, has extended to cover forty-four products; only been unwilling to sign, however, because of the thirty-four products were covered under the first provisions for automatic price adjustments. Convention. The amount of aid for the period On October 1, 1980, the economic provisions 1981-85 was increased from S4,300 million to of the 1976 International Coffee Agreement $7,200 million. 31 Chapter Three 1981 Regional Perspectives Eastern Africa The review of economic development in imported fuel. raw materials, and machinery Eastern Africa during the 1970s in last year's disrupted transport and limited production for Annuial Report painted a grim picture. A com- both the home market and the foreign market. bination of a setback in the trend of farm output, Gross domestic product (GDP) per capita fell in deterioration in the terms of trade. and institu- a number of countries and stagnated in several tional weaknesses added up to a formidable others. The Bank and IDA continued their array of constraints. In this Annual Report, the efforts to assist members in facing up to trying main focus is on the region's severe shortage of circumstances by diagnosing policy problems, imports. the consequences on production and increasing the share of nonproject assistance, investment caused by the shortage. and the continuing emphasis on agricultural lending, measures governments and the Bank are taking increasing project lending to the energy sector, to secure recovery. and mobilizing external financial support The scarcity of foreign exchange continued to through consultative groups. Member govern- plague many of the countries in the region, ments have become aware that the foreign- whose Bank membership now totals twenty-two. exchange constraint is likely to persist through Djibouti, Seychelles, and Zimbabwe having the 1980s. Economic recovery will require become members during the fiscal year. Drought stringent reforms in policies and institutions. in several countries, which made it necessary to import food, aggravated the problem. Other Development of Imports imports were heavily constrained despite a sub- Imports tended to rise faster than real GDP in stantial rise in the inflow of Official Develop- many countries in Eastern Africa during the six- ment Assistance (ODA). The shortage of ties and early seventies. Examples of this trend Countrv Pcr czpi a Trend in Lending, 1972-81 borrowers, Population GCiNP 1979 ' (US$ mil eons Fiscal years.) fiecal 1979-81 0(1x1) (1us$) (tO) Numberof Operations Botswana 773 720 Burundi 4,022 180 Comoros 394 220 Ethiopia 30,861 130 Kenva 15,274 380 Lesotho 1,309 340 Madagascar 8.480 290 Malawi 5.817 20(( Mauritius 941 1.030( Rwanda 4.947 20(1 Somalia 3,828 - Sudan 17.862 370 Swaziland 541 650 Tanzania 18.030 260 Uganda 12,797 290 Zaire 27,509 260 Zambia 5,580 500 Zimbabwe 7.146 47(0 Noi t: The 1979 estimates of GNP per cap ira preserted above are trom the "World Development Indicators in the World Dei eloprnent Report 1981. Estimales for mid 1979. ' World Bank Atris methodology, 1977-79 base pcriod. 32 1981 Regional Perspectves are to be found in Kenya, Malawi, Somalia, and a virtual standstill in Malawi and Mauritius. Sudan, and Tanzania. Several structural features Preliminary, incomplete data for 1980 show no of the economies of these countries were respon- general improvement. Imports recovered sible. First, the dependence of investment on somewhat in Kenya and Sudan, but they imports of machinery and equipment was grow- declined in several other countries, such as ing. The average ratio of imported capital goods Botswana, Burundi, Madagascar, and Somalia. to gross domestic investment rose from 32 per- It is unlikely that calendar 1981 will provide much cent to 38 percent. The pattern of investment relief, for the region's foreign-exchange con- generally favored urban areas at the expense of straint can be expected to persist. It is also possi- rural development, necessitating a higher ble that a larger share of a depressed level of total foreign-exchange component. Second, the proc- imports in 1981 will be absorbed by essential ess of production became more import-intensive purchases of about a million tons of cereals in as the output mix shifted toward modern indus- Ethiopia, Kenva, Somalia, Tanzania, and try, transport, and other services and away from Uganda. The effects of the drought of the last traditional agriculture and other rural activities two years in large areas of these countries still that did not use foreign inputs to any significant continue to be felt, and the food supply remains extent. The average ratio of imports of inter- precarious. Near-famine conditions prevail in mediate goods to GDP rose from 10 percent to 16 some areas of Uganda and in parts of northern percent. Third, while most countries saved on Kenya. In several countries, the problem of food imports of consumer durables, in some there was supply has been compounded by conflicts in a large offsetting increase in cereal purchases neighboring areas during recent years. Many abroad, reflecting the failure of food production displaced persons and refugees still live in relief to keep pace with a high and rising rate of growth camps in Djibouti, Ethiopia, Somalia, and of population. Sudan, requiring emergency assistance. To the The stagnation or decline in the volume of extent that the imports of food are not financed imports during recent years must be evaluated by emergency external assistance, there will be against this background of an increasing trend in less foreign exchange available for imports of the import-intensity of investment and produc- intermediate or investment goods. tion. Calendar 1979 saw a substantial reduction Imports were constrained in 1979 and 1980 in imports in Kenya, Sudan, Tanzania, and Zaire despite a substantial increase in the prices of Lending to Borrowers in Eastern Africa, by Sector (USS millions. Fiscal year.) Annual average 1972-76 1977 1978 1979 198() 1981 Agricultural and Rural Development $108.1 $235.8 S165.7 $198.6 $242.5 $254.3 Development Finance Companies 27.2 46.5 25.9 19.2 88.5 15.0 Education 37.8 37.3 57.7 26.5 35.1 161.2 Energy Oil, gas, and coal 4.0 - - - 48.5 - Power 51.1 55.0 48.0 9.0 115.0 10.0 Industry 24.5 23.0 45.0 60.0 - 4.0 Nonproject 18.0 45.0 - - 192.5 217.0 Population, Health, and Nutrition 2.4 - - - - Small-Scale Enterprises 0.8 - 10.0 - - - Technical Assistance 2.3 - 3.0 7.5 4.5 40.4 Telecommunications 20.4 - - 20.0 - 15.2 Tourism - 17.0 - 14.0 - - Transportation 92.1 90.6 99.0 265.0 42.5 133.0 Urbanization 9.5 - 70.0 - 21.0 15.0 Water Supply and Sewerage 14.2 22.0 36.0 26.0 24.9 9.0 Total $412.3 $572.2 $560.3 $645.8 $815.0 $874.1 Of which: Bank $193.3 $311.7 $162.4 $266.0 $150.5 $304.0 IDA $219.0 $260.5 $397.9 $379.8 $664.5 S570.1 NOTE: Details may not add to totals. due to rounding. Eastern Africa 33 <>44 Women learning farming techniques at a one-week seminar run by' a training center in Lilongwe, Malawi. regional exports, because the volume of exports Annual Report. Superimposed on these trends stagnated or declined. The composite export was the negative influence on the export sector of price index for the region rose 28 percent in 1979 the shortage of foreign exchange. In some coun- and 24 percent in 1980.' Copper prices rose to a tries, such as Sudan, Tanzania, and Zaire, the level two thirds higher than the low level of 1978, point had been reached at which severe rationing but export tonnages have remained low in Zam- of imports had deprived the export sector of the bia and Zaire compared to levels reached in means-essential fuel, equipment, and inputs- earlier years. Cotton prices went up 29 percent in for normal operation and thereby compounded 1980 from the 1978 level, but Sudanese exports the scarcity of foreign exchange in fiscal 1981. declined steeply, because accumulated stocks In addition to their inability to take advantage had already been exported and current produc- of rising export prices. the countries of the region tion was down as a result of poor weather, labor were adversely affected by increases in the cost unrest, and lack of critical imported inputs. of imports. The composite import price index for Sugar prices also skvrocketed in 1980, but the region increased 18 percent a year in both Mauritius could not benefit from the windfall 1979 and 1980. About a third of this increase was because of heavy cyclone damage and the com- the result of movements in petroleum prices. mitment to sell most of the 1980 crop to the The remainder of the increase was due mainly to European Economic Community (EEC) at set the rise in prices of manufactured goods, par- prices that were lower than world market prices. ticularly capital goods, imported from the Coffee prices increased 12 percent in 1979, but industrialized countries. Petroleum imports exports from Kenya and Tanzania declined; absorbed roughly 25 percent to 33 percent of the coffee prices declined again in 1980 and 1981. 1979 export earnings of individual countries in Quite apart from the effects of bad weather and other exceptional circumstances, there were long-run adverse trends in output that held down agricultural production and export supplies in 'These increases largely reflect the fact that, in 1978, priCcs Of magricoultural production us Inmajor exports, particularlv at copper, which has a large weight in many countries, as discussed in last year's the index, were vcrv depressed. 34 1981 Regional Perspectives the region, whereas they had absorbed only nesses and lack of trained personnel. This sector about 10 percent in 1970. This share rose further was hurt further by the inadequacy of foreign as a result of the steep increase in petroleum exchange for fuel, vehicles, and spare parts. The prices in 1980. volume of oil imports had been growing briskly Imports would have declined more than they at around 12 percent a year mn most countries did had it not been for a substantial rise in ODA. until the early 1970s. But after the oil price hike, Net disbursements from countries that are mem- the rate of growth was negative in all but a few bers of the Development Assistance Committee countries. This decline caused a severe and from multilateral agencies to nineteen deterioration in transport and contributed to a Eastern African countries amounted to about disruption of traffic in key commodities in $2,500 million in 1978, or 28 percent of the value Ethiopia, Sudan, Tanzania, and Zaire. of merchandise imports. In the following year, Altogether, the import constraint and other total aid amounted to S3,400 million, or 37 per- factors have combined to slow the expansion of cent of the value of imports. Especially large GDP in the region. In 1979. per capita income increases in inflows of aid were received by declinedagaininUganda. Zaire. andZambia. It Kenya, Malawi, Sudan, Tanzania, and Zambia. also declined in Kenya and Zimbabwe. In A predominant share of aid, however, is tied to Malawi, Mauritius, Sudan. and Tanzania, there specific projects or currencies of donor countries was an increase of less than 1 percent in per and is thus not freely available to finance the capita income. Data for 198( that are available so most urgent items of imports, such as spare far suggest that adverse tr.nds in income per- parts. sisted in many countries. Also, in some instances, the increase in official . . assistance merelv offset a contraction in the EffortstoAdjustandActvitiesoftheBank inflow of funds on nonconcessional terms; it did Member governments of the Bank realize the not augment import capacity. urgent need to resolve the severe economic In 1980, most countries of the region- problems that they face, for they recognize the Ethiopia, Kenya, Madagascar, Malawi, extent to which these problems will adversely Mauritius, Sudan, Tanzania, and Zambia, for affect the implementation of their medium-term example-incurred large deficits in the current and long-term plans for increasing investment accounts of their balance of payments, despite and welfare. The aim in the near term must be to the depressed level of imports. Several countries reduce deficits in the balance of payments to financed part of the deficit by drawing down their levels that can be sustained through external foreign-exchange reserves further. thereby assistance without recourse to excessive com- enhancing the vulnerability of their economies mercial financing. This objective can be secured to further shocks. These reserves now stand at through a combination of demand-management levels that represent less than two months' and supply-augmentation policies, especially imports. those concerned with the recovery of exports and the output of food. Some decisions have The Effect of Lessened Imports already been made, but the situation varies from on Economic Activity country to country. A number of policy areas- In some countries constrained imports were pricing of petroleum products, tariffs on undermining exports, as mentioned earlier. In transport and power, exploitation of energy many more countries, the rationing of imports resources, removal of bottlenecks in the reduced supplies for agricultural and industrial development of infrastructure and skills-will be enterprises, including public firms, that cater to reviewed here in order to assess the present the domestic market. The reduction in imports status of adjustment policies and their relation to of intermediate goods sharply reduced the use Bank lending. made of existing production capacitv and The sharp increase in the price of imported oil increased unemployment in the modern sector. has been passed on fully to the retail level in Even general government services such as Burundi, Kenya, Malawi. Mauritius, Rwanda., agricultural extension, schools, and health and Tanzania, where the price of regular facilities were deprived of critical imported items gasoline, including tax, in 1980-81 was about in many countries. Recurrent budgetarv alloca- $3.00 a gallon at the official rate of exchange. In tions to many agencies for maintenance and Botswana and Swaziland retail prices are at a operations were cut as government tax revenues, comparable level and there may not be much heavily dependent on foreign trade, failed to subsidy involved. By raisin, oil prices 56 percent keep pace with requirements. in March 1981, Ethiopia has moved in the same The state of maintenance and operations of direction. In several other countries, however, the modern transport sector was already poor in prices of gasoline remain far below border many countries owing to institutional weak- prices. Eastern Africa 35 Partly because local prices of petroleum prod- cation of rail lines in Zimbabwe may also ucts have lagged behind international costs and increase. partly for other reasons, transport and power In order to ease acute. economvwide short- tariffs also have not been adjusted fullv to reflect ages of skilled personnel that continue to pre- the central fact that energy has become much vent efficient operation of existing capacity. the more expensive. Some instances of sharp Bank has in recent years placed greatcr empha- increases should be noted, however. Railway sis on technical, commercial, and management tariffs rose an average of 301] percent between curricula in education projects and on training 1972 and 1980 in Sudan and 120 percent in Kenya. components of other projects. While such train- In Burundi, the official tariff for road transport ing components were included in about 50 per- rose 47 percent between 1977 and 1980. Between cent of the projects approved before 1974, the 1974 and 1979 average tariffs on electricity proportion has risen to 75 percent in recent increased 111 percent in Mauritius. 88 percent in years. Malawi, and 70 percent in Botswana. A number of governments have drawn up The Bank has responded to the new energy economywide or sectoral adjustment policies situation by mounting a program of energy that have been supported by nonproject lending studies and by apportioning a larger part of its by the Bank and IDA. Actions taken by Kenya project lending to this sector. A review of the and Sudan in this context were summarized in coal sector was completed in Madagascar. last year's Atnnual Report. They were joined in Energy studies are under way in Burundi, fiscal 1981 by Malawi, Mauritius, and Tanzania. Kenya, Malawi, Mauritius. Rwanda, and Zim- The emphasis of the Malawi program is on the babwe. More than 12 percent of project lending diversification of exports, the exploitation of was for energy in fiscal 1980 and 1981, while local energy resources, and the rationalization of during the preceding five years it had been less public expenditures. Similarly. the emphasis of than 9 percent. Predevelopment work in oil and the Mauritius policies is on restraining public gas in Somalia and Madagascar is being sup- investment. reducing the capital/output ratio, ported by the Bank, as are exploratory oil drill- and stimulating the revival of manufactured ing and consultant services for further engineer- exports. Finally, the aim of the Tanzania pro- ing and economic studies in Tanzania. A gram is to rehabilitate primary exports by petroleum development and distribution project improving incentives to producers and earmark- is being prepared in Sudan. A geothermal proj- ing the limited supply of foreign exchange for the ect has been initiated in Kenya, and hydro- purchase of critical imported inputs. In all these electric schemes in Madagascar, Sudan, and countries, policies recentlv initiated will have to Swaziland have been assisted. A further be sustained throughout a substantial period if hydroelectric project in Kenya is under active they are to produce the desired results. It will consideration. The Bank is also acting as the also be necessary to design supplementary executing agencv for a United Nations Develop- policies in related fields to strengthen and ment Programme (UNDP) project in which broaden the effects of the entire program. photovoltaic cells and solar-thermal power are Altogether. nonproject financing by the Bank being demonstrated and tested in small irriga- and IDA constituted 22 percent of total lending tion pumps in Sudan. In fiscal 1980, the Bank to Eastern Africa during fiscal 1980 and 1981; the financed a rural development project in Malawi share had been only 4 percent in the preceding that contained a component intended to meet five years. Although the International Monetarv the requirements of the rural population for Fund (IMF) has made available substantial addi- firewood and charcoal through the establish- tional resources in support of structural-adjust- ment of community woodlots and homestead ment policies that governments have put into planting. Recent rural development projects in effect, the financial needs are considerably Burundi, Madagascar, Rwanda, and Tanzania larger than can be met by the World Bank and also had fuel-wood and energy components. the IMF. To help coordinate the use of resources In the transport sector, the emphasis of Bank from external donors in the face of rapidly lending has been on the maintenance and changing circumstances, the Bank presided over rehabilitation of existing capacity rather than on meetings of Consultative Groups on Mauritius adding to such capacity. In three fiscal years, (newlv founded in fiscal 1981) and Zaire during 1979, 1980, and 1981, loans or credits were made the fiscal year. to eleven countries for the rehabilitation of roads and motor vehicles and to five countries for the Bank and IDA Lending, Fiscal 1981 rehabilitation of railway tracks, locomotives, Total Bank and IDA lending in the region in andwagons. The risingprice of oil should lead to fiscal 1981 amounted to $874.1 million, some diversion of some traffic from road to rail, since $59.1 million above the fiscal 1980 level. A total the latter can be more energy efficient. Electrifi- of 40 loans and credits was approvcd. LendingI 36 1981 Regional Perspectives for agriculture and rural development and Disbursements on Bank loans to borrowing nonproject lending accounted for 29 percent and countries of the region were $126.0 million dur- 25 percent, respectively, of total lending in the ing the fiscal year. Disbursements of IDA credits region in dollar terms. stood at $326.5 million for the same period. The Funds committed under cofinancing arrange- figures for Bank and IDA disbursements in fiscal ments with the Bank and IDA reached S179.8 1980 were $171.1 million and S208.9 million, million, or 59 percent below last year's level. respectively. Each cofinanced project attracted an average of $12 million in cofinancing during the year, com- pared with about $29.5 million in fiscal 1980.2 2Cofinancingdatahavebecen compiled from World Bank reports of projects at the time of their Board approval and do not reflect (See table on page 80.) changes in amounts since that time. 37 Western Africa The review in last year's Annual Report of Western Africa, excluding oil, have remained major economic trends during the seventies depressed or have declined further; in most parts noted that the turbulence that arose from sudden of the Sudano-Sahelian region, rains in 1980 energy price increases, enormous fluctuations in were insufficient or irregular and, in several commodity prices, droughts, increases in prices countries, export crops, groundnuts in particu- paid for imported capital goods, and recession in lar, were poor or very bad; food crops-millet the member countries of the Organisation for and sorghum-were generally mediocre. With Economic Co-operation and Development indications that in the 1980s prospects for sub- (OECD), combined with insufficient or mis- stantial Official Development Assistance flows, directed policy responses, had left many coun- particularly from countries that are members of tries of Western Africa in a condition of the Development Assistance Committee of the economic weakness: very large external deficits, OECD, are not bright, and that import prices mounting external debt, and, on the whole, a would continue to increase, though at a slower poor growth record. pace than in the 1970s, and with a distinctly more External factors during the first eighteen reserved attitude on the part of private sources of months of the new decade have not been of a capital and only cautiously optimistic forecasts kind to allay the fears that the eighties would be a of economic recovery in the industrial countries, difficult, perhaps a decisive period for the long- it has become clear to Western African govern- term future of African countries. During 1979 ments that serious efforts at domestic adjust- and 1980 the petroleum import bill of oil-import- ment have become necessary. Countries vary ing Western African countries jumped sharply; greatly in the magnitude of the internal and prices of most of the commodities exported from external imbalances that need to be corrected. Country Pcr capita Trend in Lending, 1972-81 borrowers. Population I GNP 1979 2 (USS millions. Fiscal years.) fiscal 1979-81 (011) (US$) (tO) Number of Operations Benin 3.425 250 Cameroon 8.245 560 Central African Republic 1,952 290 Chad 4,365 110 Congo, People's Republic of the 1,497 630 Gambia, The 587 250 Ghana 11,313 400 Guinea 5,275 280 Guinea-Bissau 779 170 Ivory Coast 8,227 1.040 Liberia 1,797 500 Mali 6.750 140 Mauritania 1.588 320 Niger51627 Nigeria 82,603 670 Senegal 5.518 430 Sierra Leone 3,381 250 Togo 2,420 350 Upper Volta 5,642 180 NOTE; The 1979 estimates of GNP per capita presented abovc are from the "World Dcvclopment indicators" in the World Development Report 1981. ' Estimates for mid 1979. World Bank Atlas methodology. 1977-79 base period. 38 1981 Regional Perspectives They varv also in resource position and therefore Nigeria, public consumption in the Congo, and a in the capacity to resume or accelerate growth. mixture of both in Gabon. And they differ significantly in the degree to Thanks to a set of forcefully applied measures which their governments are determined to take of demand control, the external imbalances have the necessary action and in the degree of social largely been corrected in the course of the last consensus needed to withstand the sacrifices that twenty-four months, especiallv in Gabon and the process of structural adjustment entails in Nigeria. The recent increment in resources the short and medium term. It appears that, derived from the latest oil price increase has except in a very few cases, to repair the damage been a great help, of course, and the three suffered during the 1970s will require years governments now seem determined to avoid rather than months of effort to improve the repeating the excesses in public spending of the management of demand and promote supply. previous cycle. There remain in these three Most visible, however, is the much wider gulf countries the structural problems of long-term between the oil-exporting countries and the preparation for a future with much less oil. The others created by the last round of oil price complex issues involved are related in concept as increases. Also, as a result of greatly intensified well as in practice to the desirable long-term oil exploration since the mid seventies the pattern of public and private expenditures in the outlook is that a few more countries may become face of a set of relative prices largely determined net exporters of oil in the course of the eighties. by one product-oil. The governments are very For still others, a greater measure of self-suffi- much preoccupied with the problems involved, ciency is in sight. which are at the center of the Bank's economic The "traditional" exporters of oil-Nigeria, and sector work in these countries. Gabon, the Congo-are very different from Of all the countries in the region, Cameroon each other in population, income level, has managed best to attenuate the effects of resources other than oil, and policy regimes. As external factors on its economy. It has become, noted in last year's Annual Report, however, all furthermore, a net, though still modest, ex- three reacted to the sudden jump in oil revenues porter of oil with a potential for significant in 1973-74 by enormously increasing the level of growth in its oil sector, and at the same time is public spending, especially public investment in perhaps the only economy with both a reason- Lending to Borrowers in Western Africa, by Sector (US$ millions. Fiscal year.) Annual average 1972-76 1977 1978 1979 1980 1981 Agricultural and Rural Development $113.3 $162.1 $195.4 $174.1 $238.0 $409.8 Development Finance Companies 5.2 11.2 67.0 27.0 - - Education 32.9 14.8 23.8 30.0 49.0 22.4 Energy Oil, gas, and coal - - - - 5.0 15.5 Power 16.1 57.0 18.2 1.1 103.3 61.5 Industry 0.1 - - - 60.0 25.0 Nonproject - - - - 60.0 Small-Scale Enterprises 13.7 - 5.0 12.6 18.0 28.0 Technical Assistance - 12.4 6.3 2.2 5.5 66.3 Telecommunications 13.5 - - - - - Tourism 2.7 13.6 - 14.2 - Transportation 106.1 77.0 136.4 168.1 214.0 244.8 Urbanization 1.6 44.0 8.2 12.0 17.8 Water Supply and Sewerage 5.8 - 49.0 115.0 21.0 5.0 Total $311.2 $392.1 $509.3 $556.3 $731.6 $938.3 Of which: Bank $197.3 $259.1 $303.4 $317.1 $439.2 $554.8 IDA $113.9 $133.0 $205.9 $239.2 $292.4 $383.5 NOTE: Details may not add to totals, due to rounding. Western Africa 39 Maintaining the railroad line from Douala to Ngaoundere in Cameroon. able growth record during the 1970s-an average the revenues from newly discovered and poten- 5 percent a year-and no serious financial tiallv important oil reserves, and on avoidance of difficulties. This is the result of prudent fiscal the kind of excesses that followed the coffee- management and government encouragement cocoa boom of 1976-77. to market forces in productive activities. Similarly, the government of Togo has taken In contrast, 1980 and 1981 will be marked for action to steer the economy through a period the Ivory Coast, whose historical growth record when service on the foreign debt contracted dur- is among the best in Africa. as a period of much- ing the phosphate boom will absorb an uncom- needed adjustment: actions taken by the govern- fortably high proportion of both government ment since 1978 include pruning of the public revenue and export proceeds. Part of the public investment program, more rigorous selection of debt was rescheduled through the Paris Club in projects on the basis of their contribution to February 1981 after agreement with the Interna- growth, closer attention to unit costs in public tional Monetary Fund (IMF) on a stabilization expenditure, restraint in foreign borrowing, and program. reform of parapublic enterprises. The success of During the last eighteen months, in order to its adjustment program during the next few years alleviate the burden of too much debt, Liberia will depend on the basic institutional and pricing and Sierra Leone also availed themselves of the reforms envisaged primarily in agriculture, but mechanism of the Paris Club following similar also in other sectors, the judicious allocation of stabilization programs with the IMF. As in many 40 1981 Regiono Perspectives other cases, the governments have also under- In countries that are comiparativelv well taken to make better use of funds from foreign endowed with natural resources, such as Ghana borrowing in recognition of the fact that a prim- and Guinea, but that have suffered from pro- arv cause of the so-called debt problem had found and persistent weaknesses in organiza- been the allocation of such funds to unproduc- tion, politically difficult steps will be required to tive projects. remove the deep-seated distortions that pervade The program of structural adjustment under- the system of incentives and to move their taken bv Senegal since the middle of 1980, with economies away from the historical trend toward support from the Bank, the IMF, and bilateral stagnation. donors, illustrates the extent of the reforms that Faced with the imperative of rehabilitating mav be needed when, as is frequently the case, their economies, the vast majority of Western the problem is rooted in an historic pattern of African countries are likely to take the critical policies and institutions that were not alwavs internal policy measures needed, and the Bank appropriate. The program seeks to increase is prepared to assist them. As mentioned earlier, public savings. Expansion of credit is to be the Bank has provided support to the structural- severely limited, as is foreign borrowing. The adjustment program in Senegal; discussions are public investment program for 1981-84 is to be under way with a few other countries in the trimmed and its composition tilted toward more region with a view to devising reform programs directly productive sectors, and projects will be at both the macroeconomic and sectoral levels. selected according to more rigorous cost-benefit It would be unrealistic to expect, however, that analysis. with the present level of external assistance Major parts of the incentive system are to be domestic adjustment alone will accelerate the revised: higher and more nearly uniform import pace of growth throughout the region. In the tariffs and export subsidies are being introduced long term, inflows of public and private capital at on a limited scale; consumer prices are to be higher levels and a more favorable trade gradually decontrolled and producer prices environment are also essential ingredients. made more remunerative. The parapublic sector has undertaken to prepare "program contracts" Lending Focus on Rural Development designed to clarify objectives, internal struc- With respect to agriculture. the 1980-81 crop tures, and financial relations with the govern- year in the region has not given any indication ment. that it will reverse the total food situation. This comprehensive program of structural Imports of wheat and rice by all countries in the adjustment is meant to cut the external deficit on region probably exceeded the 3.2 million tons current account and lay the foundations for sus- recorded in 1978-79 and could reach 5 million tained growth. What may have been the worst tons by 1985. While weather has had something groundnut crop since independence, however, to do with food production, two important rea- has greatlv compounded the difficulties. While sons for the deteriorating situation continue to the government will need to remain committed be inappropriate pricing and support policies to the objectives of the rehabilitation program, and resource constraints. more time than was foreseen will be needed to Pricing and import policies have channeled achieve them. demand toward consumption of wheat and rice, In countries facing serious structural problems which are becoming more popular in urban in other parts of the Sahel, it is often less clear areas, replacing locally produced foods that are what the governments' programs are. The situa- more expensive. Inadequate allocations of tion remains unsettled in Chad: in November foreign exchange and funds to meet subsidies 1980 a new military government came to power elsewhere in the economy have caused inputs to in Upper Volta; in Niger the cereal crop was be insufficient, and thev are often delivered too rather good, but a decline in uranium prices and late by state corporations. These policies are also uncertain prospects for the future required a encouraging poor use of land and are preventing reduction in the public investment program and the development of better techniques of land made apparent the need for the government to management. In the drier areas and also in the strengthen its financial management, especially more populous areas, soil and water conserva- with respect to foreign borrowing. In Mali. the tion problems are increasing with deforestation. government has determined that reforms are As more crop wastes are burned for domestic seriously needed in the public sector, especially purposes, less is available for feeding livestock liberalization of the marketing of cereal and and for retaining the fertility of the soil. Declines more stringent employment policies for the in agricultural production may also be attributed public sector as conditions for achieving a to the attitude of farmers who are reluctant to measure of internal and financial equilibrium risk growing crops that have perennially been and for stimulating agricultural production. lost to drought and pests. Western Africa 41 To help rectifv these problems, the focus of only one such project. in the Congo. in fiscal Bank lending in Western Africa has continued to 1980. In addition, S2.8 million of Project Prep- be on rural development and on policy discus- aration Facility (PPF) advances were granted for sions with governments, particularly in Mali, the preparation of seven oil-exploration proj- Nigeria, Senegal. and Upper Volta. Lending for ects, while only $0.8 million, for three projects, agriculture, including food production. had been advanced in fiscal 1980. Bank lending increased 71 percent in fiscal 1981 and continues for technical assistance in the petroleum sector to claim the largest share of total lending to the increased more than 400 percent in fiscal 1981. region. Afforestation, improved land use, and In the area of renewable energy, an IDA credit agricultural research are receiving more atten- of $9.3 million was approved in fiscal 1981 for a tion in the planning of possible projects for the forestry project in Senegal featuring 5,000 hec- future. While rural development projects them- tares of rainfed tree plantations to renew and selves cannot turn the tide, there is evidence that expand natural sources of fuel wood and building they are improving food supplies in the project poles. A similar project in Cameroon is in an areas and that their examples are encouraging advanced stage of preparation. as are a gasohol some governments to consider more favorable project in Mali and hydroelectric projects in policies. Nigeria is a case in point as it attempts Benin, the Ivory Coast, Sierra Leone, and Togo. to implement its 1980 National Food Strategy. Hydroelectric projects in Ghana. Guinea, the main elements of which are to provide the Liberia, Niger, and Upper Volta are being small-scale farmers with production inputs, such examined. as fertilizers, pesticides, seeds, and farm equip- ment; to offer critical services consisting, for During fiscal 1981, preliminary energy-sector instance, of rural feeder l oads, crop and input reviews were undertaken for Cameroon. Ghana, storage facilities, extension services, and so on; and Sierra Leone. In these, an attempt was made and to adopt a package of incentives. such as to examine. to the extent possible, resources, crop-pricing policies, investment incentives, and supply, demand, investment, institutions, and import tariffs that encourage food production policies. In addition to the preliminary iden- while minimizing the direct activities of the tification of project opportunities, policy issues government in food production. requiring consideration were flagged. and ways and means, including technical assistance, of improving national energy planning and Developing Energy Potential management were suggested. Similar studies of With respect to energy, the Bank's response is other countries are planned. to help the oil-importing countries to explore In the transportation sector maintenance, and develop their own energy potential, par- rehabilitation, and upgrading of existing ticularly in petroleum, but also including energy infrastructure, extending feeder road networks, from renewable sources, such as hydropower. and institution building have been given priority fuel wood, biomass. and solar energy, and to set over new investments in high-standard roads. In up comprehensive national planning and fiscal 1981 alone, seven road projects were policies for energy so as to ensure more efficient approved with those priority objectives in mind, use of this key resource. including a $100 million Bank sector loan to the Bank strategy with respect to petroleum is to Ivory Coast that emphasizes rehabilitation and promote exploration. Bank-assisted exploration construction; an $11.3 million IDA credit to projects typically comprise reevaluation of exist- Benin for rehabilitation and maintenance; a $20 ing data and the gathering of new geological and million IDA credit to Togo featuring institution- geophysical data and strengthening of national building components: and a $17 million IDA planning capacity in the oil sector for carrying credit to Mali for maintenance. Further projects out further collection and analysis of data, are being prepared along the same lines. negotiation of exploration contracts, and Transport ranked second in the overall distribu- monitoring of exploration activities. Bank- tion of Bank lending to the region and, in addi- assisted exploration activities are now being con- tion, was able to muster considerable amounts of sidered or carried out in three basins: the cofinancing funds. onshore Taoudeni basin in Mali and Mauritania and two offshore basins-one involving The Gambia, Guinea, Guinea-Bissau, Mauritania, Bank and IDA Lending, Fiscal 1981 and Senegal, the other Benin, Ghana, the Ivory Total Bank and IDA lending in the region in Coast, and Togo. During fiscal 1981, the Bank fiscal 1981 amounted to $938.3 million, some and IDA assisted petroleum-exploration proj- $207 million above the fiscal 1980 level. A total of ects in Guinea-Bissau. Liberia, and Mali. for a 35 loans and credits was approved. Lending for total of $15.5 million, whereas they had assisted agriculture and rural development and transpor- 42 1981 Regional Perspectives tation accounted for 43 percent and 26 percent, Disbursements on Bank loans to borrowing respectively, of total lending in the region in countries of the region were S245.5 million dur- dollar terms. ing the fiscal year. Disbursements of IDA credits Funds committed under cofinancing arrange- stood at $183.2 million for the same period. The ments with the Bank and IDA reached $178.8 figures for Bank and IDA disbursements in fiscal million, or 71 percent below last vear's level. 1980 were $233.3 million and $142.0 million, Each cofinanced project attracted an average of respectively. $15 million in cofinancing during the vear, com- pared with about $34 million in fiscal 1980.' (See Cofinancing data have been conPiied from Wovalad Bank reports of projects at the timen of their Board approval and do not reflect table on page 80.) changes in amounts since that time~ 43 East Asia and Pacific With their rapidly growing and generally open substantial initial deficits in current accounts, economies, the countries in the region that bor- which meant that policies were needed to reduce row most heavily from the Bank have been these deficits, if not immediately, then at least in deeply affected by recent events in the interna- the medium term. tional economy, which are discussed elsewhere The deteriorating climate of world trade has, in this Annual Report. The changes were adverse however, made it difficult to effect the adjust- for the three large petroleum-importing coun- ment by increasing exports. In the case of Korea, tries: Korea, the Philippines, and Thailand. The a major exporting country, the efforts to diver- approximate doubling of nominal petroleum sify to a technologically more advanced mix of prices between mid 1979 and mid 1980 cost these output and exports-such as automobiles and countries some 4-6 percent of their real heavy machinerv-proved to be more difficult incomes. In contrast to the situation in 1974-75 than had been anticipated. These difficulties these losses were not compensated for by were exacerbated by the inflationary pressures increased prices of other commodities exported brought on by the high rates of growth in gross by countries in the region: although prices of domestic product (GDP), which averaged 11 per- sugar and grains increased, those of some metals cent a year during 1976-78, and rapidlv rising and vegetable oils declined. The net effect on the labor costs, which were caused by the tightening balance of payments was positive for Thailand labor market. The declining competitiveness in and mixed for the Philippines. The effect of the exports necessitated a 36 percent devaluation of loss in the terms of trade for the three large the won in 1980, which, while improving the petroleum importers came on top of already balance of trade, brought on another inflation- ( ounrsrr Plcr capit, Trend in Lending, 1972-81 borrowscr. Populatulio (NP 197) (US$ mil ons Fisca years.) tilcul 1')S 'I (-)11(1) (JISS) (0t) Number of Operations China 964.505 26(1 Fiji 6 19 1. )8(1 Indonesia 142.87(1 370 Korea. Republic of 37.814 1,480( Lao People's Democratic Republic 3,349 - Malaysia 13.137 1.37(0 Papua New Giuinea 2.939 66(1 Philippines 40.748 61(1l Solomon Islands 221 - T hailand 45.475 59(1 Viet Nam 52.943 - Western Samoa 155 NIr E. Ishc 1979 csuirmat. of1 GNP pcr capit. prcscrstedl ahovc .acc frlim dc WbWrld D,,clapnmenn Indicatrorsr in thc War-l t(le*zlrll R'I}>r I,,I \ /II \ \ O ocr c1olurrcrs Rq,ort /5,).Xi Etiru,tcr tr mid Q1 /79. 'I! 'cap f/ask Arlas iicuthodoloecs\. 1)77-79 ac perio)d i 44 1981 Regional Perspectives ary price push. With international inflation also persist for several years. Inflation is also an accelerating, Korea's domestic inflation rate important constraint for Indonesia where the peaked at 29 percent in 1980 before beginning to government has succeeded in bringing the rate of abate in 1981. inflation down to about 15 percent a year from In the Philippines and Thailand, domestic the rate of 30 percent reached in the wake of the inflationarv pressures were less strong, but still 1978 devaluation. The onlv larger country in the the rate of inflation in these two countries region that has succeeded in keeping inflation accelerated to 18 percent and 20 percent, respec- below the double-digit level during the last tivelv, in 1980. Control of inflation-principally several years is resource-rich Malaysia, which by means of tight monetarv policy and selective had an inflation rate of 7 percent in 1980 due price freezes in the Philippines and by means of partly to the conservative fiscal and monetary cuts in subsidies and other budgetary expendi- policies pursued by that country. tures in Thailand-and a reduction of balance- Of the countries of the region, the most of-payments deficits therefore became impor- seriously afflicted by oil price increases were the tant objectives of policy in 1980 and 1981. The small, oil-importing countries such as land- deflationary policies that were adopted led to locked Laos. To avoid a worsening of its some reduction in the growth momentum in economic situation and further deterioration in both countries. In Korea. the effects of a very living standards, Laos introduced in fiscal 1981 bad harvest, the political uncertainty and civil several sweeping measures, including partial unrest that followed the assassination of Presi- elimination of price and subsidv distortions and dent Park, and of restrictive policies for combat- an austere stabilization program. Devaluation of ting inflation worked together to reduce GDP the kip had occurred in the previous fiscal year. nearly 4 percent in 1980, and in the course of the In consultation with the Bank, more resources year, the government resorted to measures by were committed to irrigated rice production, which it hoped to stimulate the economy, livestock, and forestry. As a result of these although these were tempered by concern for measures, the economic situation in the country resurgent inflation. improved markedly. For Indonesia, as a petroleum exporter, the oil These various issues must be considered price increase has led to a large improvement in against the background of the continuing need to its balance of payments, and it is expected that redress poverty and to increase the welfare of the present surpluses in current accounts will large segments of the population, a task that will Lending to Borrowers in East Asia and Pacific, by Sector (USS millions. Fiscal year.) Annual average 1972-76 1977 1978 1979 198(1 1981 Agricultural and Rural Development $211.1 S 522.5 $ 794.2 $ 566.4 $ 786.4 $ 648.0 Development Finance Companies 86.0 232.5 290.0 150.0 90.0 431.5 Education 57.9 83.0 40.0 164.0 138.0 363.0 Energy Oil, gas, and coal - - - 4.9 179.0 - Power 100.6 196.0 259.0 255.0 588.5 350.0 Industry 38.0 80.0 10.0 29.0 - 8.9 Nonproject 35.0 - - - - 218.0 Population, Health, and Nutrition 8.6 37.5 33.1 57.0 65.0 - Small-Scale Enterprises 9.3 - 44.8 25.0 - 106.0 Technical Assistance 4.4 - - 10.0 - Telecommunications 16.0 - - 90.0 - - Tourism 8.2 - - - - - Transportation 174.1 248.0 246.5 389.7 253.0 100.0 Urbanization 22.8 52.5 8.6 102.0 166.0 133.0 Water Supply and Sewerage 28.3 23.0 - 287.0 103.0 - Total $800.3 S1,475.0 $1,726.2 $2,130.0 $2,368.9 $2,358.4 Of which: Bank $707.8 $1,452.0 $1,586.9 $1,791.6 $2.160.5 $2,227.9 IDA $ 92.5 $ 23.0 $ 139.3 $ 338.4 $ 208.4 $ 130.5 East Asia and Pacific 45 A student learning welding techniques at the Vocational Training Institute in Pusan, Korea. not be easy. Two countries, Korea and Thailand, dence of poverty in the Philippines probably have been successful in this respect since the declined a few percentage points toward the end 1960s. But the situation may be changing for the of the 1970s. There is, however, a danger that worse, for Korea may find new trade restraints in increasing poverty will assert itself in other coun- the path of its export-led strategy, Thailand can tries, unless governments can effectively counter no longer count on the availability of additional the less favorable economic conditions that pre- land reserves, and both countries are wrestling vail now and are expected to prevail in the with scarcity of budgetary resources. future. The absence of a foreign-exchange constraint created opportunities for the alleviation of Government Policies and Bank Assistance poverty for the two petroleum exporters, Although at varying rates of intensity, all Indonesia and Malaysia. Those two countries countries are attempting to address these have manpower development programs under problems, and the Bank is assisting them in their implementation-programs supported with efforts. The three countries with the largest cur- external assistance, including that from the rent-account deficits-Korea, Thailand, and the Bank-to meet the growing demand for skilled Philippines-especially are moving across a manpower so as to enable programs of poverty broad front to induce structural adjustments in alleviation to be designed and carried out. The their economies. Areas of special importance skilled-manpower constraint is, of course, a are appropriate pricing policies and trade phenomenon common to many developing policies, mobilization of resources, monetary countries. The same general problem exists in policy, conservation of energy, import substitu- copper-rich Papua New Guinea, where the criti- tion, industrial and financial reorganization, cal constraint is the shortage of skilled and rural development, alleviation of poverty, man- trained manpower. Judging from improvements agement of foreign debt, and improved public in some economic and social indicators, the inci- administration. Within the space of the Annual 46 1981 Regional Perspectives Report it is not possible to cover all these areas in ing-together with cofinancing by private all countries, so a few examples must suffice. banks-through one institution, the Apex With respect to energy, the government of Development Finance Unit, created by the Thailand has moved rapidly for more than a year Central Bank of the Philippines in consultation to bring prices into line with international levels. with the World Bank; the funds are onlent to This will not only tend to improve efficiency in other domestic banks according to criteria pre- the use of energy but will also reduce public- viously agreed upon, with industrial lending as sector subsidies and budget deficits. The govern- the ultimate purpose. ment is also preparing a program for conserva- Industrial reorganization is also expected to tion of energy bv the large industrial users of be included in the structural-adjustment loans to energy. The transport sector was induced to Korea and Thailand that are now being pre- become more energy-efficient by means of pared. In Indonesia and Malaysia, where no several massive increases in excise taxes on structural-adjustment lending is contemplated, gasoline during 1979-80, in effect doubling its industrial and financial policy reform is also high price within one year. In the field of energy- on the Bank's agenda for policy discussions with import substitution, domestic gas and lignite the government. resources are rapidly being developed. On the In the interest of improving efficiency in the assumption that these resources will largely use of resources, several countries have been replace fuel oil, attention is also being given to looking to the Bank for assistance in planning an appropriate adjustment in Thailand's refinery and institutional reform. In Korea and Thailand, product mix. the Bank has managed planning-assistance proj- In all these areas, the Bank is offering sup- ects financed by the United Nations Develop- port. Specifically, several loans have been made ment Programme, the results of which are being for a gas pipeline (fiscal 1979 and 1980), lignite used extensively in the analysis being carried out development (fiscal 1980), and power subsector for the preparation of structural-adjustment development (fiscal 1978, 1980, and 1981). All lending. At the request of the Thai government, energy issues are being addressed comprehen- the Bank has also been advising on a number of sively in the context of several possible loans that issues in the management of development, are now being discussed by the government and including functional and geographic decentral- the Bank. ization of decisionmaking and strengthening of Similar approaches are being followed in the the links between the planning and budgeting work on Korea, which has fewer domestic processes. The latter issue has also been dealt energy supplv options than Thailand. In the with in the Philippines and Indonesia. Philippines, the Bank carried out an energy- Finally, in the general concern for alleviation sector survey in collaboration with the Asian of poverty, both rural and urban, and provision Development Bank (AsDB). In Indonesia, the of basic needs, the Bank has, as part of its Bank is assisting the government in undertaking research program, done significant analvtical an energy-sector survey, with a view to improv- work on povertv and its determinants in ing the efficiency of domestic energy use. A coal- Indonesia, Malaysia, the Philippines, and Thai- mining project is in advanced stages of prepara- land. In addition, many special contributions to tion; this coal will be used to fire power genera- the alleviation of poverty are being supported by tors, the construction of which is being financed the Bank. In Indonesia, for example, special by the Bank. In fiscal 1980 the Bank helped to studies have been undertaken in the areas of finance a hydropower project in Fiji, which will transmigration and the training of manpower in make possible substantial import substitution of agriculture. In the same country, projects have petroleum products. A similar project is being been undertaken for agricultural research (fiscal prepared in Solomon Islands, to be cofinanced 1980), swamp reclamation (fiscal 1981), small- with the AsDB. holder tree-crops development (fiscal 1981), In industrial and financial policy, sector small-enterprise development (fiscal 1981), slum studies have been carried out for Thailand, improvement (fiscal 1981), and higher education Indonesia, Malaysia, Korea, and the Philip- (fiscal 1981). In other countries projects that will pines, and the governments have given serious help to alleviate poverty have been undertaken attention to the recommendations. in fiscal 1981 for agricultural credit or support In the specific case of the Philippines, the services (Malaysia, Papua New Guinea, the Bank's structural-adjustment lending in fiscal Philippines, Solomon Islands, and Western 1981 is based on a comprehensive set of industrial Samoa), watershed management (the Philip- and trade policy reforms being implemented by pines), and primarv education (Papua New the government. In that country the Bank has Guinea and the Philippines). In the case of also followed a new approach to the financing of Solomon Islands and Western Samoa, a new industrial development by channeling its lend- initiative has been introduced to cofinance East Asia and Pacific 47 selected projects with the Asian Development ceased to grow. In fact, excluding the first loan to Bank in the lead. In the urban sector, where the China, the total lending program to the region lending is focused specifically on the poor, loans for fiscal 1981 actually declined marginally from were approved for projects in Indonesia and the amount lent in fiscal 1980. Korea. China and the Bank: the First Year New Directions in Lending On May 15, 1980, the Executive Directors of and Other Assistance the World Bank decided that the government of the People's Republic of China would represent To varying degrees, the governments of the China pn p pe ese countries in the region are recognizing to a grow- ing extent the importance not only of the invest- government and the Bank adopted for the first ment strategy but also of the policy framework year of the relationship a program having two for economic development. The Bank is actively aspects. First, heavy emphasis was placed on supporting this evolution. The new approaches economic and sector work, in an attempt to are perhaps most evident in the lending for struc- mned the sociaan ectonm develpenteo tural adjustment, which is now firmly estab- mined the social and economic development of lished in the Philippines and for which prepa- China during the last decades. Some of these rations are now under way in Korea and Thai- factors are discussed briefly in this chapter. land. Even where structural-adjustment lending Second, preparation of a small group of high- is not being undertaken because the economic priority projects was started immediately, and an conditions for it do not exist, as in Indonesia and appraisal of a university development project, in Malaysia, the trend is in the direction of the approved by the Executive Directors in June, same type of verv specific analytical work in and preappraisal work on two other projects- agriculture and ports-were completed. preparation for and support of policy adjust- Cghina and po pere codlted. ments that will benefit the country in the long China has a varied chlmate and terrain, large run. This approach is now also being used in energy resources, a largely self-sufficient and areas of general policy, such as the alleviation of diversified production band a hig ter- poverty, where the Malaysian government, for ate, disciplined population. During the past example, is using price measures, such as sup- three decades, most of its development efforts port-price policy for small farmers' crops and have had two objectives: mdustrialization, with subsidized basic inputs, and budgetarv support an emphasis on heavy industry, and elimination of a variety of specific development schemes, ment pst asects opoyverty Chinesedevelop- such as land-development and settlement pro- tr grams, which are primarily for the benefit of the extreme shortage of cultivable land and a high poor. These programs and policies are having degree of international isolation. substantial influence on the character of the Efforts directed toward alleviation of poverty economic and sector work, which is becoming began with an initial phase of land redistribu- more selective and is moving from the general to tion, followed by agricultural programs and the specific. This work is being undertaken to an widespread provision of social services, for the increasing extent in close cooperation with most part using local resources and initiatives. reseachersin th borowingcounties.Despite slow growth of agricultural production researchers in the borrowing countries. in relation to population, the effects on human Recognizing that the Bank can finance only a welfare have been impressive. At the same time, relatively small part of the investment programs a massive infusion of centrally mobilized capital of these countries, the trend in the design of led to rapid industrialization, using technology projects has been to make maximum use of the most of which dated from the 1950s. Growth of Bank's limited financial and technical resources gross national product (GNP) per capita was well by ensuring that the investments are embedded above the average for low-income countries- in an effective policy framework. This can, but 2.7 percent a year from 1957 to 1979. Consump- does not necessarily have to be, accomplished tion has grown significantly, although more through sector lending. Recent examples of the slowlv than total output, owing to the emphasis use of this approach are an education loan to given to investment growth. Nevertheless, Korea, a power loan to Thailand, and a financial China's most remarkable achievement has been sector loan and a primary-education loan to the to meet far more of the basic needs of low- Philippines. income groups than have been met of their coun- Through these and similar approaches the terparts in most other poor countries. During Bank hopes to make its assistance more effective the past decade, the country has also been quite in the socioeconomic development of the region, successful in reducing its population growth. as the resources that it can, at present, make In the last two years. the government has initi- available to the established borrowers have ated a wide range of economic reforms in the 48 1981 Regional Perspectives system of economic planning and management. performance, its economic system, its medium- Most of those are meant to improve the effi- term prospects, and the development, perform- ciency of the use of physical and financial ance, and prospects of the energy, agriculture, resources and to effect a better match between education, transport, and industrv sectors, was supply and demand, specifically with respect to completed in May 1981. The analysis was the consumer goods, production of which is now basis for extensive discussions with the govern- given higher priority as a development objec- ment, during which general agreement was tive. The government has taken steps to increase reached on an operational country work pro- the share of consumption in the economy by gram that would address the critical constraints reducing the share of investment in budget of lagging energy production, inefficient use of expenditures and to spend more on housing, energy in the industrial sector, limited agricul- education, health, agriculture, and light indus- tural land, lack of foreign exchange, and short- try. Urban wages and agricultural procurement ages of trained manpower. prices have been increased substantiallv. Agricultural production, light industrial output, Bank and IDA Lendig, Fiscat 1981 and real consumption per capita rose sharply Total Bank and IDA lending in the region between 1978 and 1980. in fiscal 1981 amounted to $2,358.4 million, The new policies have been less successful in some $10.5 million below the fiscal 1980 level. other respects. Some unforeseen effects on the A total of 35 loans and credits was approved. budget and on the balance between aggregate Lending for agriculture and rural develop- demand and supply occurred, mainlv because ment and development finance companies the planned reduction in investment was not accounted for 27 percent and 18 percent, respec- entirely achieved. There were large unplanned tively, of total lending in the region in dollar budget deficits in 1979 and 1980, coupled with terms. inflationary pressure that was only partly sup- Funds committed under cofinancing arrange- pressed by the price-control svstem. This led in ments with the Bank and IDA reached $1,027.7 earlv 1981 to a switch in emphasis from medium- million, or 12 percent above last vear's level. term adjustment to short-term stabilization. Each cofinanced project attracted an average of Price controls were tightened, some recentral- $114 million in cofinancing during the year, com- ization of economic decisionmaking was intro- pared with about $70 million in fiscal 1980.' (See duced, and expenditures for capital construction table on page 80.) were to be cut 40 percent from 1980 to 1981, Disbursements on Bank loans to borrowing causing the postponement of many large pro- countries of the region were $1,349.9 million dur- jects, including those financed from foreign ing the fiscal year. Disbursements of IDA credits sources. Efforts are being made to continue stood at $90.9 million for the same period. The investment programs in high-priority sectors, figures for Bank and IDA disbursements in fiscal notably energy, in order to ease critical con- 1980 were $1,052.0 million and $74.5 million, straints on further expansion of domestic pro- respectively. duction. The Bank's introductory analysis of China's I Cofinancing data have been compiled from World Bank reports of nprojects at the time of their Board approval and do not reflect economy, covering China's past development changes in amounts since that time. 49 South Asia The economies of most South Asian countries most countries of the region to maintain their in 1980 enjoyed an encouraging expansion in investment rates and in a few instances to raise total output and per capita growth, recovering them. substantially from the drought-induced declines The generally favorable growth experience in 1979. What made this growth notable was the through fiscal 1981 has taken place against a set- fact that it occurred despite another sharp rise in ting of structural obstacles to development. The the prices of the petroleum products upon which region faced both external and internal problems the region depends heavily. During 1979 and that constrained its development efforts. Most 1980 the petroleum-import bill of South Asian countries suffered from the rise in energy prices countries jumped 80 percent; in these two years and world inflation, while the economic slow- the share of earnings from merchandise exports down in industrial countries impeded expansion absorbed by oil imports increased from around of exports. Growth in domestic savings generally 45 percent to 70 percent. Agriculture in much of failed to keep pace with investment, upsetting the region benefited from favorable weather, the overall resource balance. The region con- while government policies and strong agricul- tinues to suffer from inadequate economic tural growth have lent an impetus to growth in infrastructure. The poverty that pervades South other sectors as well. Although sharp rises in Asia makes it almost inevitable that improve- petroleum prices aggravated the balance-of-pay- ment in social services can take place only at a ments problems of a number of countries and the very slow pace; this underscores the importance inflationary tendencies of several of them, of reducing the rate of population growth if development assistance, to some extent, helped severely depressed standards of living are to be Country Pcr tapita Trend in Lending, 1972-81 borrowers, Population I GNP 1 79 2 (US$ millions. Fiscal years.) fiscal 1979-81 (000) (US$) (tt) Number of Operatlions Bangladesh 88,934 90 Burma 32,913 160 India 659,217 190 Maldives 150 200 Nepal 13,963 130 Pakistan 79,705 260 Sri Lanka 14,542 230 NOTE: The 1979 estimates of GNP per capita presented above are from the "World Development Indicators" in the World Development Report 1981. Estimates for mid 1979. 2 World Bank Atlas methodology, 1977-79 base period. 4 /s<, ,- 0 50 1981 Regional Perspectives improved. While it is alwavs hazardous to base problem as the current-account deficit increased long-term judgments on the events of a year or sharply. Imports rose more than 3 percent, two, it is clear that the profound deterioration in fueled primarily by sharp increases in the the balance of payments of countries of the volume and prices of imported petroleum and region calls for intensifying efforts for reorganiz- fertilizer. This situation was exacerbated by a fall ing their economies and stepping up support by in domestic production of crude oil owing to the international community to facilitate the political agitation in Assam. Although export necessary process of change that has come to be performance improved somewhat, growth was called structural adjustment. insufficient to counter the deterioration in the terms of trade. Country Developments Stepping back from these recent develop- Following a poor monsoon and a generally ments and making a long-term appraisal sug- disappointing performance the previous year, gests that the Indian economy today is substan- the economy of India rebounded in fiscal 1981, tially stronger than it was a half decade earlier, with growing strength in the latter part of the and it should therefore be better able to weather year. Aided by a good monsoon, agricultural the effects of the harsher external environment. production more than recovered from the The country's agricultural and industrial bases depressed level of the preceding year. Though are considerably broader and more diversified slower to recover, industrial output gained some than they were in the past; imports of food grains momentum, so that growth in gross national prod- have been gradually eliminated, while substan- uct (GNP) was expected to be between 7 percent tial buffer stocks of grain have been established; and 8 percent. Production of food grains in fiscal rates of gross investment and national savings 1981 approximated the fiscal 1979 record of 132 have climbed to impressive levels, reaching million tons. Some easing of supply constraints about 22 percent of GNP; substantial foreign- occurred in coal production and port clearance. exchange reserves have been built up; and exter- Against these significant gains, several economic nal debt is at very low levels. indicators lagged: power and rail transport A number of difficulties of a structural nature remained in short supply; the annual rate of remain, however, that require sustained action if inflation remained high at 16 percent; and the soundly based development is to be possible in balance of payments presented a serious the future. The more serious problems include a Lending to Borrowers in South Asia, by Sector (US$ millions. Fiscal year.) Annual average 1972 76 1977 1978 1979 1980 1981 Agricultural and Rural Development $223.2 $ 451.0 $ 899.7 $ 541.7 $1,098.0 $ 918.7 Development Finance Companies 75.9 29.0 113.0 - 140.0 50.0 Education 4.8 15.0 5.7 35.0 40.0 25.0 Energy Oil, gas, and coal 12.0 150.0 - 30.0 - 485.0 Power 74.8 150.0 305.0 467.8 614.5 - Industry 102.2 71.0 - 334.0 29.0 400.0 Nonproject 240.3 75.0 75.0 100.0 50.0 115.0 Population, Health, and Nutrition 7.2 - - 32.0 78.0 - Small-Scale Enterprises - - 7.0 16.0 20.0 65.0 Technical Assistance 2.3 3.0 - 10.0 3.0 16.0 Telecommunications 32.5 80.0 134.5 - 65.0 314.0 Tourism 0.8 - - - - - Transportation 84.7 70.0 22.0 206.5 113.0 73.5 Urbanization 7.0 49.0 87.0 - 56.0 42.0 Water Supply and Sewerage 25.9 21.2 - 304.0 130.0 27.0 Total $893.7 $1,164.2 $1,648.9 $2.077.0 $2,436.5 $2,531.2 Of which: Bank $154.2 $ 394.0 $ 330.0 $ 300.0 $ 125.0 $ 430.0 IDA $739.5 $ 770.2 $1,318.9 $1,777.0 $2,311.5 S2,101.2 NoTL: Details may nor add to totals, due to rounding. South Asia 51 r~~~~~~~~~~~~~~~ Learning about familyv planning in Bangladesh. very low level of per capita income ($190) with an and small industrial enterprises. IDA assistance attendant high incidence of poverty~ a severely in financing industrial raw materials and compo- strainied economic infrastructure; inadequate nents for selected sectors of high priority has domestic production of commodities, such as been instrumental in facilitating better use of edible oils, fertilizer, cement, and steel; made- capacity in industry. The Bank has also con- quate growth of exports; and continuing popula- tributed to the alleviation of infrastructural tion pressure. However, significant changes in bottlenecks through its support of the power sec- economic policies are taking place in India in tor, telecommunications, and railways. The response to the changingy resource position and further development of India's reserves of oil and in preparation for another period of balance-of- natural gas has also received Bank support. payments difficulties. The ambitious sixth five- Following unfavorable weather and poor har- year development plan (fiscal 1981-85) addresses vests in 1979 and 1980, agricultural production in itself to all these challenges. Bangladesh, under the stimulus of good weather, During fiscal 1981, Bank assistance to India enjoyed a strong recovery in 1981, increasing hy continued to emphasize agriculture. The Bank about 7 percent. and the country's position in has been particularly active in supporting, minor food grains improved considerably. As a result, irrigation and other on-farm investments gross domestic product (GDP) also expanded through agricultural credit operations and in about 7 percent. Apart from the effects of providing direct support to major and minor favorable weather, the growth in agricultural irrigation schemes. Marketing. seed develop- output was also attributable to government ment, agricultural extension, and dairying are policies, reflected in increased investment in other agricultural activities supported bv the irrigation, better use of existing irrigation Bank. The Bank has also been active in helping facilities, improved delivery of input's, and price- to finance the expansion of output in the fer- support measures. Progress was also made in tilizer sector and, through its sizable assistance raising administered prices to reflect costs and in to development finance institutions, in a wide containing current expenditures while maintain- range of geographically scattered medium-scale ing a high level of government investment. 52 1981 Regional Perspectives Along with these favorable developments, of about 5 percent seemed within reach. however, fiscal 1981 witnessed a serious Agricultural output increased by between 3 per- deterioration in public finances and in the cent and4percent; in addition, industrial output balance of payments, continuing a situation that also revived as capacity and its use grew and as had been aggravated in fiscal 1980. The budge- the availabilitv of imported inputs increased. tary difficulties were associated with large expen- The expansion was facilitated by good weather, ditures for food procurement and a reduced continued growth in exports and migrants'remit- inflow of commodity aid. Notwithstanding the tances, and favorable economic policies that conclusion of an Extended Fund Facility agree- both encouraged the private sector and provided ment with the International Monetary Fund general economic stability. The government has (IMF), the balance of payments deteriorated enjoyed considerable success in its efforts at because of declining jute prices, higher petro- management of demand: the general budgetary leum prices, and a shortfall in commodity aid. situation, public and national savings, and infla- Viewed in long-term perspective, Bangladesh tionary pressure improved considerably in both has made considerable progress in recent vears 1980 and 1981. Balance-of-payments pressures, in laving a foundation for the countrv's develop- which have been severe in recent years, were ment. Among noteworthv aains that have been moderated through the conclusion of an agree- made are the rehabilitation and expansion of the ment with the IMF for an Extended Fund phvsical infrastructure, better use of capacity, Facility, the largest granted by the Fund so far, improved performance in public investment-all and an eighteen-month rescheduling agreement laying the foundation for future agricultural and on external debt with bilateral creditors of the industrial growth-and greater development Pakistan Consortium. activity on the part of the private sector. In industry, various incentives have begun to This evidence of sustained recent progress stimulate private investment and exports, while must be seen, however, against the backdrop of a concerted attempt to introduce reforms, the massive development problems that the including greater flexibility of management and country faces: low food production, widespread tougher standards of financial performance, has illiteracy, increasing pressure of population on a reduced inefficiency in the public manufacturing small land area, and shortage of energy. Indeed, sector. Agricultural production benefited from a a dt einvestments in quick-vielding projects, improve- agricultural development, education, family ... planning, and energy have been identified in the ents i support services, and higher crop X ' p rices. Some progress has also been made in new second five-vear plan as the countrv's top S p development priorities, developing the country's energy capacity through new exploration, investments in genera- Activities of the Bank are designed to help the tion and transmission facilities, and encourage- government address these problems. In agricul- ment of the use of domestic fuels by means of ture, IDA credits are helping the government to appropriate price adjustments. implement its ambitious, vet technically feasi- These recent achievements represent only the ble, Medium-Term Foodgrain Production Plan, beginning of an attack on the country's principal the aim of which is food self-sufficiency by 1985. development problems. These include low pro- Toward this end, credits have been provided for ductivity in agriculture, an inefficient public minor irrigation, agricultural extension, agricul- industrial sector, slow growth in large-scale pri- tural credit, and the production and transport of vate industry, heavy dependence on imported fertilizer. With a group of other donors the Bank energy supplies, a low level of domestic savings, is continuing its support of the family-planning and a high rate of population growth. The Bank program and has been discussing with the has worked closely with the government in government ways of improving the management attacking several of these problems. In agricul- of the program. In energy, the Bank IS support- ture, studies by the government and the Bank of ing both development of the country's natural water management in the Indus basin and other gas resources and the formulation of a national aspects of agricultural productivitv have been energy policy. To help broaden the industrial responsible for significant policy reforms, base and increase nontraditional exports, mem- including efforts to rationalize agricultural input bers of the Bank staff have been aiding the and output prices and a redirection of agricul- government in developing the basis for a com- tural investment. Bank-supported projects prehensive set of industrial policies along with include seed improvement, the introduction of direct lending for industrial projects. the training-and-visit extension system, and In fiscal 1981, for the fourth consecutive vear, agricultural research. A program of joint Bank- the economy of Pakistan showed continued Pakistan investigations of the industrial sector is growth, although at a somewhat slower pace expected to improve efficiency in both private than in fiscal 1980. Indeed, an annual growth rate and public industry. South As a 53 The economy of Nepal in recent years has public sector for the completion of important exhibited little growth. Iargely reflecting the projects that require long gestation periods- inability of the agricultural sector to expand out- brought severe pressures on public finances and put. GDP and agricultural growth since fiscal the balance of payments, leading to rapidly ris- 1976 have averaged less than population growth, ing prices and a reassessment, supported by the and per capita production of food grains has economic and sector work of the Bank, of the fallen steadily. While investment has expanded, government's development program. This reas- growth in productivity has lagged. Largely as a sessment has led to a decision to reduce general result of the slow growth in agriculture, the cur- expenditures and readjust spending priorities. rent-account deficit in the balance of payments The resurgence in the Sri Lankan economy has increased sharply in recent years. and the accompanying pressures on resources The obstacles to development in Nepal are se- had, by early 1981, reached the stage at which vere; they include its difficult natural topog- major stocktaking and policy actions were essen- raphy, inadequate infrastructure, institutional tial in order to preserve the gains reached in the weakness, rapid population growth, and pro- period since 1977. The central problem was gressive deterioration in the phvsical environ- excessive spending on long-gestation or low- ment as a result of steady deforestation and yielding projects, coupled with stagnation in erosion. exports of tree crops. A reversal of the deteriora- The Bank has assisted in developing infra- tion in the overall economic situation requires a structure in Nepal through credits for highways, reform of public finances. including better per- power, and telecommunications. Now the assist- formance of corporations in the public sector, ance of the Bank is being directed toward the reevaluation of the public investment program. lagging agricultural sector through a number of improvements in the tree-crop sector, and rec- projects in irrigation, rural development and tification of the trade deficit by stimulating farming in the hills, grain storage. and credits for exports and containing imports. forestry and erosion control. The Bank rou- The Bank is working closelv with the govern- tinely incorporates technical assistance in vir- ment in attacking these problems. The Bank is tually all its projects in the country in order to giving substantial support to the Mahaweli Pro- strengthen project implementation and institu- gram, which consists of ambitious, multiple-pur- tional capacity. pose projects for river-basin development. Lending to expand productivity in the tree-crop Resurgence in Sri Lanka sector is an important contribution to export The principal policy reforms of 1977 in Sri development; joint studies of export-incentive Lanka were followed by dramatic improvements policies by the World Bank and the Sri Lankan in economic performance as import liberaliza- government have the same objectives. tion, external assistance, and a rationalization of Agricultural production in Burma recorded prices led to an upsurge of private and public steady progress in the late 1970s as investment investment and large increases in production priorities shifted toward the primary producing and employment. sectors. Use of higher-yielding varieties of rice, Although growth in GDP decelerated in 1980 coupled with favorable weather and attractive to about 5.5 percent, this was still twice the rate fertilizer price incentives, led to rapid increases that had prevailed during the period 1970-77. in paddy output. Industrial performance, The slowdown was largely attributable to however, was less consistent. Real GDP, declines in tree crops, manufacturing, construc- nevertheless, increased 6 percent a year in the tion, and mining. Paddy production, however, late 1970s, in sharp contrast to performance in grew more than 10 percent during 1979, reaching earlier years, and is expected to have increased 8 a record high level and bringing the country percent in fiscal 1981. close to self-sufficiency in rice. While Burma has thus made substantial A striking feature of Sri Lanka's recent growth economic progress in recent years, the level of has been a massive increase in capital formation. economic activity is far below the country's Important projects in the public sector include potential. There is substantial scope for further the Accelerated Mahaweli Program and housing increases in production of paddy and other pri- and urban-renewal programs. Private invest- mary products, but this will require improve- ment has also increased sharply, with total gross ments in incentives to producers. An additional investment increasing from 14 percent of GDP in major issue is the need to strengthen efforts at 1977 to 35 percent in 1980. Foreign savings mobilization of resources. both because the financed most of this large increase in invest- politicoeconomic system of the country calls for ment. the state to fulfill a pivotal function, and for Beginning in 1980 and continuing into 1981, public investment in particular, and because claims on resources-especially demands by the resources devoted to meeting needs in the social 54 1981 Regioncl Perspectives sectors have been declining in real terms for a endeavored to assist the government both number of years. through economic advice-on public investment Through its economic work the Bank has programming and administration, for exam- advised the government on various aspects of the ple-and in its project financing, through assis- allocation of public investment and mobilization tance with modernization and expansion of the of public revenues. In addition, the Bank has fishing industry. tried to encourage a more vigorous export pro- gram. With respect to investment allocation the Bank and IDA Lending, Fiscal 1981 Bank has analyzed the desirability of an Total Bank and IDA lending in the region in appropriate balance between quick-yielding fiscal 1981 amounted to S2,531.2 million, some agricultural and industrial investments and the $94.7 million above the fiscal 1980 level. A total slow-maturing heavy industrv that has required a of 38 loans and credits was approved. Lending large amount of investment and foreign for agriculture and rural development and exchange. In line with the government's own energy accounted for 36 percent and 19 percent, priorities, IDA lending to Burma primarily respectively, of total lending in the region in seeks to support directly productive sectors- dollar terms. agriculture and mining-and, thereby, growth in Funds committed under cofinancing arrange- export earnings. In addition, IDA credits aid in ments with the Bank and IDA reached $610.5 the development of the country's infrastructure million, or 63 percent above last year's level. through lending for transport and telecom- Each cofinanced project attracted an average of munications, for example. $51 million in cofinancing during the year, com- With earnings from fish production and tour- pared with about $29 million in fiscal 1980.' (See ism doing very well and with the impetus of table on page 80.) favorable government policies, the economy of Disbursements on Bank loans to borrowing the Maldives grew quite rapidly in 1979 and 1980. countries of the region were $200.5 million dur- Capital formation, including further develop- ing the fiscal year. Disbursements of IDA credits ment of capacity in the fishing industry, tourist stood at $1,091.1 million for the same period. facilities, and the shipping fleet, increased. The figures for Bank and IDA disbursements in The country's development requires con- fiscal 1980 were $181.8 million and $866.5 tinued expansion of foreign-exchange earnings, million, respectively. strengthening of the fishing industry, the geographical diversification of economic activity, solutions to the problem of supply and conservation of energy, and further strengthen- Cofinancing data have been compiled from World Bank reports of projects at the time of their Board approval and do not reflect ing of the planning process. The Bank has changes in amounts since that time. 55 Europe, Middle East, and North Africa ThedevelopingcountriesintheEurope,Mid- rates of growth in gross domestic product dle East, and North Africa region vary con- (GDP), consumption, and investment fell siderably in both economic characteristics and noticeably. Poor export performance and social and political institutions. The underlying deteriorating terms of trade, together with a economic diversity is reflected in the develop- poor harvest and an earthquake in Montenegro. ments that have taken place in the countries of led to a significant increase in Yugoslavia's cur- the region during the past fiscal year. Yet there rent-account deficit in 1979. The country's short- has been a common denominator for most coun- term response was to adopt a stringent stabiliza- tries: an intensified emphasis on adopting tion program and a major devaluation. Despite a policies and measures aimed at adjustment to further deterioration in terms of trade and a the international economic developments of sharp rise in interest costs, these actions signifi- 1979 and 1980-sharply higher energy prices, cantly reduced imports, boosted exports, and higher food prices, rising inflation and slower lessened the current-account deficit. For the growth in the industrial countries, a slowdown in medium term, both Yugoslavia and Romania exports, and significantly higher interest rates on are taking steps to conserve energy and reduce external loans. dependence on imported oil; both countries are also stressing increased agricultural production Structural Adjustment as a way of promoting agricultural exports. Among the higher-income countries of the The Bank's economic work program for both region, Romania and Yugoslavia both expe- Yugoslavia and Romania includes a review of the rienced a general slowdown in the past year, as two countries' adjustment policies and meas- Countrv Pult= Pcr ca Ita Trend in Lending, 1972-81 borrowers. Populatin I GNP 179 (US$ millions. Fisca years.) fiscal 1979-81 (111(U SS) (00) Nuom b er of O perat ions Afghanistan 15,542 170 Algeria 18,211 1.590 Cyprus 618 3,110 Egypt, Arab Republic of 38,868 480 Greece 9,272 3,960 Jordan 3,126 1,180. Morocco 19.538 740 Oman 865 2,970 Portugal 9,771 2.180 Romania 22.()68 1.9()0 Syrian Arab Republic 8,639 1.03(0 Tunisia 6,194 1.120 Turkey 44,237 1,330 Yemen Arab Republic 5.693 420 /,>l Yemen, People's Democratic Republic of 1,855 480( Yugoslavia 22,139 2,43(0 NotlE. Thc 1979 cstimates of GNP per capita prcscnted abovc arc front the "World Dcvelopment Indicators' in the World Developmeit Report 19H1. Estimates for mid 1979 2 World Bank Atda, methodology, 1977-79 hasc period. 56 1981 Regional Perspectives ures. A special report on Yugoslavia's export In the late 1970s, Morocco faced a rapidly performance and policies, particularly as related deteriorating position in its external payments to manufactures, was completed in 1980 and pro- and its budget, largely as a result of a rapid in- vided a disaggregated analysis of Yugoslav crease in public investment after the phosphate export performance in the seventies; a review of price boom of 1974-75 and because imports grew Romania's investment priorities and adjustment sharply while exports stagnated. In 1978 the measures in the context of the country's Sixth government introduced a three-year stabiliza- Development Plan (1981-85) was started late in tion program with the aim, among other things, fiscal 1981. of reducing investment expenditures and Portugal, another"higher-income" borrowing imports. Economic growth was impressive- country, experienced healthy growth-esti- about 6 percent-in 1980, in part because of the mated at 5.8 percent in 1980-led bv recovery of recovery of the agricultural sector, and the cur- output of manufacturing and construction indus- rent-account deficit was held essentially to its tries, inventory accumulation, and export per- 1979 level. The International Monetary Fund formance. The country faces a higher current- (IMF) has supported a three-year program of account deficit in 1981, however, primarily financial adjustment and growth starting in 1980. because of a significant decline in the rate of its The measures adopted in 1980 include adjust- export growth that stems from the weakness of ments in the exchange rate, in interest rates, and demand in the countries of the European in controlled prices of foodstuffs, electricity, and Economic Community (EEC). Portugal is petroleum products; limits on borrowing at com- developing proposals for reorganizing its indus- mercial terms; and a shift in investment try in preparation for entry into the EEC in the priorities in favor of energy, rainfed agriculture, mid 1980s. The measures being designed will export-oriented, labor-intensive industries, and have the purpose of improving efficiency and the projects that require shorter gestation periods. quality of products in certain important subsec- The retrenchment in Morocco, however, as in tors, such as textiles and engineering. The Bank several other countries of the region, is exacer- continues to assist this effort with the financing bating the unemployment problem. of some of the subsectoral studies under loans More than any other country in the region, for industrial development. Turkey has, in recent years, faced serious Lending to Borrowers in Europe, Middle East, and North Africa, by Sector (USS millions. Fiscal year.) Annual avera e 1972-76 1977 1978 1979 1980 1981 Agricultural and Rural Development $ 273.9 S 429.5 $ 559.2 $ 636.0 S 685.5 $ 609.0 Development Finance Companies 155.6 239.0 75.0 150.0 230.0 432.0 Education 62.6 79.5 191.0 188.0 146.0 81.7 Energy Oil, gas, and coal 28.1 - - 77.5 146.0 132.0 Power 193.0 142.5 118.0 276.0 263.0 203.5 Industry 118.3 126.8 247.0 234.0 246.0 192.6 Nonproject 14.0 70.0 50.0 150.0 200.0 375.0 Population, Health, and Nutrition 4.3 4.8 - 25.0 - 12.5 Small-Scale Enterprises 17.7 45.0 - 25.0 20.0 30.0 Technical Assistance 0.6 1.5 - - - 6.9 Telecommunications 33.5 - 53.0 - 22.0 - Tourism 11.3 26.0 - 32.5 - - Transportation 183.3 232.5 390.0 406.6 451.0 156.5 Urbanization 12.5 - 32.0 19.0 - 57.0 Water Supply and Sewerage 71.4 173.0 140.7 117.0 36.2 147.1 Total $1180.0 $1,570.1 $1,855.9 $2,336.6 $2,445.7 $2,435.8 Of which: Bank $1,044.8 $1,474.3 $1,660.5 $2,081.5 $2,174.0 $2,173.2 IDA $ 135.2 $ 95.8 $ 195.4 $ 255.1 $ 271.7 $ 262.6 NOTE: Details may not add to totals, due to rounding. Europe, M dd e East, and North Africa 57 Workers in thze Yemen Arab Repuiblic lasbzing steel reinforcements to the wooden forms before cement is poured at a dam that is under construction. econom-ic difficulties. The crisis in Turkey had its second structural-adjustment loan in the amount roots in both inadequate and long-delayed of $300 million was approved in May 1981. domestic policy responses to the external TurkevYs domestic adjustment efforts have also developments of the early 1970s and the diverse been strongly supported by assistance from the international developments of 1979 and 1980, IMF, a rescheduling of public debt by member particularly rising world prices for imports. countries of the Organisation for Economic Co- including oil, and declining migration oppor- operation and Development (OECD), and in tunities for Turkish workers, caused by the 1981 the extension of official loans, totaling $960 deepening recession in WeStern Europe. Faced million, from these countries and loans from with stagnant growth in GDP. a massive balance- Saudi Arabia. as well. Significant progress has of-payments crisis, and high and accelerating been made in implementing structural reforms, rates of inflation that reached 65 percent in 1979 but in the face of the country's deep-rooted and topped out at 108 percent in 1980. Turkey in economic difficulties, continued domestic January 1980 adopted a far-reaching program of efforts and sustained support from the interna- economic reforms, followed in the succeeding tional community will be necessary before Tur- months by additional measures, such as flexible key can return to a path of economic growth with exchange rates and deregulation of interest a sustainable balance-of-payments position. rates. The Bank has actively supported the The capital-importing. oil-exporting countries efforts of the government through a series of of the region-Egypt, Syria, Tunisia, and structural-adjustment loans, project lending, Algeria (which has significantly larger export and economic and sector work. A supplement of revenues from oil and gas)-benefited in varying $75 million to the first struictural-adjustment degrees from the 1979-80 increases in oil prices. loan was approved in November 1980, and a The effect of increased oil revenues has been 58 1981 Regional Perspectives particularlv significant for Egypt, which is the Turkey-and country economic and sector poorest country in the group. Reflecting a dou- work, the Bank is reinforc_mg the emphasis that bling of petroleum-export revenues, higher most of the countries in the region, including earnings from the Suez Canal. and sizable some of the oil exporters. such as Egypt, Syria, inflows of remittances, Egypt's foreign-exchange and Tunisia, are placing o01 appropriate pricing earnings have risen rapidly during the past two of energy. Too often domestic energy prices had years, and the growth in GDP has been about 10 fallen far out of line with international prices, percent a year since 1976. While continuing its giving rise to burdensome subsidies and to efforts to develop its natural-resource base distortions in relative prices. which encourage further, the favorable position of Egypt in exter- inefficient use of energy and impede the nal payments provides an opportunity for it to development of new sources of energy. In some intensify its efforts to improve its performance in cases the needed price adiustTnents are substan- agriculture and industry, which is essential for tial, requiring some time-phasing in view of the diversification of its productive base, and to far-reaching effects of higher energy prices, par- meet the basic needs of its population. In sup- ticularly on production costs in many areas of port of such a strategy, the Bank is assisting the economic activity. government in a variety of fields. particularly agricultural development, energy, and man- Increasing Food Production power development. In generation of emplox ment and in contribu- In addition. the Bank's economic and sector tion to GDP, agriculture continues to be a princi- work, undertaken to an increasing extent in col- laboration with the country itself, is designed sectr in the magion. he borowng countries in the region., in some instances to address key issues of development strategy absorbinghalformoreofLhe respectivenational and economic reform. An example of the recent labor forces. Nevertheless, with the exception of economic work carried out is a study of mobiliza- Turkey, the low-iNncome anl d middle-income tion of domestic resources that was presented to countries continue to be defic'ent in the produc- the Aid Donors meeting in Aswan in January tion of food grains, while in several-Egypt, 1981 under the auspices of theEgyptian govern- Syria, the Yemen Arab Republic, and the ment. IMaghreb countries-food imports bulk large in In Tunisia, the nearly twofold increases in the total imports. In the higher-income countries, value of petroleum exports between 1978 and particularly Cyprus, Romania, and Yugoslavia, 1980 led to a substantial increase in the country's agricultural exports makc an important con- savings performance and allowed it to reduce tribution to foreign-exchange earnings. While in foreign borrowing by nearly half while maintain- a number of countries the dependence on ing its investment rate at a high level. With a imports of food is primarily a reflection of poor decline in oil production, and consequently in natural resource endowment, in others it is the petroleum exports, likely for the medium term, result of low productivity, inefficient use of re- there is renewed emphasis on improving the sources, and inappropriate producer-pricing country's export performance. Tunisia's efforts policies. to diversify its exports were assisted in June 1981 With an intensified need to reduce deficits in with a Bank loan of $18.6 million for the reha- e l avmens, many o reduce s m bilitation of export-producing textile industries, xternal payments, many of the countries i the region are making greater efforts to remove or correct the impediments to more rapid agri- Energy Development and Policies cultural growth. The Bank's lending program Oil-importing countries in the region have re- and sector work in agriculture are supporting the sponded in diverse ways to the higher energy efforts of these countries to increase food pro- prices they have faced during 1979 and 1980, duction. Thus, new irrigation projects in Egypt broadening the variety of energy sources used and the People's Democratic Republic of Yemen and pursuing stricter policies toward manage- will expand the areas in which improved techni- ment of demand and conservation. On the sup- ques of farming can be promoted by the techni- ply side there has been intensi:fied exploration cal-assistance services included in these proj- for new oil and gas deposits in Evgypt, Portugal, ects. Production and processino of high-value and Turkey and improved secondary-recoverv crops will be promoted under projects in techniques in Turkey. Concurrently, there has Cyprus, Turkey, and Yugoslavia, which include been continued expansion in the supply of components of agricultural credit and market- electrical power, supported by Bank loans, in ing. Under the structuraladjustment lending Jordan, Romania, Tunisia, and the Yemen Arab operations in Turkey, the authorities intend to Republic. Within the context of its project-lend- improve policies for the pricing of farm products ing operations, structural-adjustment loans-in and to strengthen the extension system. Europe, Middle East, and North Africa 59 Capital-Surplus Oil-exporting Countries exporting countries may encounter a significant Except for Iran and Iraq. whose production slowdown in demand and perhaps even some and exports of petroleum were sharplv reduced reverse flows in the future. This points to the during the past vear because of war, the export need for designing the manpower-training pro- revenues of the principal oil exporters of the grams in the exporting countries not only to meet region increased sharply in 1980. These coun- the evolving internal demand but also to meet trie hae cntiuedthei masiv inestent the external demand for skills. Accordingly, trBes have contdgued their massive wrvestment programs in physical and social infrastructure as Bank lendgng for manpower development is well as in directly productive activities in an addressmg vocational and technical training in effort to achieve rapid diversification of their labor-exportingcountries such as Egypt. Jordan, effrt o ahiee api diersfiatin o thir the People's Democratic Republic of Yemen, economies. The scarcity of indigenous man- and the Yemen Arab Republic. Bank technical power and administrative and technical skills in assistance in the manpower planning field has these countries, however, continues to be a aslsobncm ved some labrmporting serousobsacl totheeffctie pamano nd also been provided to some labor-importing serious obstacle to the effective planning and countres such as Oman. where, in fiscal 1981, implementation of investment policies and proj- . . . ects. The Bank is providing reimbursable tech- support was given to that country's Ministry of nical assistance to some of these countries- Labor and Social Affairs. Furthermore, the Saudi Arabia and Kuwait in particular-to Bank recently completed a comprehensive pro- analyze these problems. Assistance has also jection of the demand for and international been provided in the form of sector planning, mgration of labor i the Middle Eastern and project analysis, institution building, and train- North African countries of the region. The study ing The technical assistance offered i auring fis- identified likely trends in the demand for various cal 1981 included assistance with the preparation skills and provides a valuable background for cal 1981 included assistancepolcv diswithos the mpreparationes of the Third Development Plan in Saudi Arabia s polic scuso with membercountries and a series of planning studies in Kuwait that A manpower study for the Yemen Arab are expected to be completed in the near future. Republic was also completed in 1980. This study is expected to assist the countrv in formulating its During the past decade, the principal oil manpower development strategy and policies in exporters of the region have emerged as major connection with its Second Five-Year Develop- donors of aid, both through regional financial ment Plan (1982-86). institutions and funds and from government to government. Total Official Development Assist- ance (ODA) from the capital-surplus, oil- Bank and IDA Lending, Fiscal 1981 exporting countries of the region reached Total Bank and IDA lending in the region in approximately $6,70() million in 1980; it had fiscal 1981 amounted to $2,435.8 million, some been about $5,700 million in the preceding year. $9.9 million below the fiscal 1980 level. A total of As in the past. a portion of the flows of aid was in 45 loans and credits was approved. Lending for the form of cofinancing with the Bank; some agriculture and rural development and develop- twenty-four Bank-assisted projects were sup- ment finance companies accounted for 25 per- ported by cofinancing from bilateral and mul- cent and 18 percent, respectively, of total lending tilateral agencies of the region's oil exporters in in the region in dollar terms. fiscal 1981. Their cofinancing amounted to S401 Funds committed under cofinancing arrange- million. ments with the Bank and IDA reached S510.9 The prosperity of these countries has had a million, or 66 percent below last year's level. favorable indirect effect on the economic Each cofinanced project attracted an average of development of much of the region, particularly $28 million in cofinancing during the year, com- through remittance flows from expatriate labor, pared with about $80 million in fiscal 1980.1 (See which are substantial and of crucial importance table on page 80.) to such countries as Egypt, Jordan, the People's Disbursements on Bank loans to borrowing Democratic Republic of Yemen, and the Yemen countries of the region were $1,486.6 million dur- Arab Republic. (Remittance flows to many ing the fiscal vear. Disbursements of IDA credits countries outside the region are substantial, as stood at $118.2 million for the same period. The well.) As noted in last year's Annueal Report, figures for Bank and IDA disbursements in fiscal however, migration does have its economic and 198( were $1,311.1 million and S83.9 million, social costs. The labor-exporting countries, in respectivelv. certain cases, have lost up to 30 percent of their labor force and an even higher proportion of their qualified manpower. As the pattern of demanid for labor in the host countries shifts c ofinin Jdta havc been coBmpocd trom Wodd otik rcpors of projocct mrt the tiJc of thcir Board apprlo al and do niot refiect toward more skilled jobs, some of the labor- cheanges int amounts sincc that titTe. 60 1981 Regional Perspectives Latin America and the Caribbean In the face of a deteriorating international of the Caribbean and Central America are most environment, the countries of the Latin America severely affected by the high cost of these and the Caribbean region maintained the pace of imports, which in 1980 absorbed between a economic activity in calendar 1980; the rate of fourth and half of the value of their exports. growth in the region's gross national product To reduce this burden, the Brazilian govern- (GNP) remained at about the same level in ment has formulated a national energy-develop- calendar 1980 (5.4 percent) as in 1979 (5.5 per- ment program that includes an extensive cent). However in the first half of 1981 the rate exploration effort for fossil fuels, acceleration of declined. This performance compares well with the development of hydroelectric projects, and that of other developing regions and of the an aggressive and innovative effort to substitute industrial countries. The relative resilience of other domestic energy resources for imported the Latin American economies under adverse petroleum, while encouraging conservation of conditions reflects in part the fact that, by and energy through fiscal incentives and appropriate large, governments are responding with realism pricing policies. The National Alcohol Program to the problems facing them. (PROALCOOL)-substitution of alcohol as Although the region as a whole is a net export- automobile fuel-has already increased the er of petroleum, these exports are concentrated alcohol/gasoline average blend ratio from 1 per- in a few countries-Ecuador, Mexico, Peru, Tri- cent to 6 percent in the mid 1970s to about 20 nidad and Tobago, and Venezuela. Most coun- percent in 1980. About 250,000 cars were tries, therefore, rely heavily on petroleum manufactured in Brazil in 1980 with modified imports. Brazil, Chile, and the smaller countries engines designed to run on straight alcohol. This Countrv Per capita borrowers, Population I GNP 1979 2 fiscal 1979-81 ((11)°°) (US5) Trend in Lending, 1972-81 Argentina 27,313 2.230 (US$ millions. F scal years.) Bahamas 234 2.750 (00) Number of Operations Barbados 248 2,440 Bolivia 5.428 550 Brazil 116.539 1.780 Chile 10.917 1.690 Colombia 26.122 1t010 Costa Rica 2.162 1,820 Dominican Republic 5.280 990 Ecuador 8,081 1.050 El Salvador 4,410 670 Guatemala 6,811 1,020 Guyana 834 580 Haiti 4,921 260 Honduras 3,563 530 Jamaica 2,159 1,260 Mexico 65.509 1,640 Nicaragua 2.584 660 Panama 1.794 1.400 Paraguay 2.974 1,070 Peru 17.149 730 Trinidad and Tobago 1.150 3.390 Uruguay 2,904 2.100 NoLE: The 1979 estimates of GNP per capita presented abovec are \ t>. from tlhc World Devclopment Indicators in the World Development Report 1981. l Estimates for mid 1979. Worldl Bank Atlas methodology. 1977-79 hase period. Latin America and the Caribbean 61 program, costing more than $5,000 million and intraregional trade, the eleven signatory coun- supported by a $250 million loan from the Bank tries of the Montevideo Trade Treaty of 1960 in fiscal 1981, has the aim of replacing about 45 agreed, in 1980, on a new treaty and the replace- percent of Brazil's gasoline consumption with ment of the existing Latin American Free Trade alcohol by 1985. Practically all other countries in Association (ALALC) by a new intergovern- the region are also adopting energy-pricing and mental organization, the Latin American incentive policies for the purpose of conserving Integration Association (ALADI). The new energy, accelerating the development of entity will have more flexible rules, in keeping hydroelectric and other sources of energy, and with the changing needs of the countries, and intensifying exploration for coal, oil, and gas. will rely on bilateral negotiations more than on Fiscal 1981 saw the initiation of disbursements broad, multilateral agreements. from the oil facility of Mexico and Venezuela and The value of the exports from the region rose from a similar facility sponsored by Trinidad and by a third in 1980 to more than $94,000 million. Tobago. The former scheme, with potential The bulk of this increase was accounted for, assets set at 30 percent of the value of oil exports however, by the five oil exporters, whose exports of the two countries to the oil-importing nations rose 49 percent in value and 3 percent in volume. of Central America and the Caribbean, was set The value of total exports of the other countries up to provide loans at concessional rates to the reached almost $48,000 million, up 19 percent central banks of those countries. Whenever from 1979, or about 5 percent in real terms. these funds are used to finance development Brazil and Chile experienced the largest export projects, especially in the energy sector, the growth-more than 10 percent in real terms. In maturity of the loans is changed to a twenty-year contrast, Argentina's exports fell 15 percent in period with an interest rate of 2 percent. The oil volume. The volume of exports of Central facility of Trinidad and Tobago also provides American countries also declined or stagnated loans on concessional terms to the oil-importing in 1980. countries of the Caribbean region. The worth of the imports of the oil exporters Another response to the current economic cli- rose bv a third, well below export growth, lead- mate is the opening up and liberalization of trade ing to a doubling, to $1,700 million, of their trade in which several countries are now engaged. This surplus. The trade deficit of the countries that do process involves varying degrees of liberalization not export oil rose from $2,300 million in 1979 to in the financial markets of these countries and, $7,700 million in 1980, an increase caused more more generally, growing reliance on the market by the higher cost of imports-24 percent-than system to set prices and allocate resources. Such by their increase in real terms, which was about 6 measures have already begun to show positive percent. Except for the oil exporters. the terms results. Higher energy prices are encouraging of trade of the region are estimated to have conservation and development of alternative deteriorated by about 8 percent between 1979 fuels, whereas more remunerative prices to and 1980. farmers are leading to greater and more diver- The Latin American countries as a group are sified agricultural production, notably in the continuing to make a strong effort at saving, and southern "cone" countries-Argentina, Chile, more than four fifths of the region's capital for- and Uruguay-of South America. The countries mation is financed out of domestic savings. Still, that have adopted a policy of positive real the requirements for external borrowing are interest rates have increased domestic savings large in absolute amounts because of the heavy that are channeled through the financial system, burden imposed by expensive imports of have stemmed capital flight, and have petroleum and high service payments on the encouraged inflows of private capital from foreign debt. For example, the fifteen countries abroad. In some cases, liberalization of trade is with the largest bills for imported oil are now already being reflected in more efficient spending, on the average, the equivalent of two industrial production and expansion of nontradi- thirds of their export earnings on debt service tional exports. and fuel imports. The resultant external con- Progress toward liberalization of trade in straint, combined with the inflationary effect of Latin America is hampered, however, by the rising oil prices and the needed corrective recession that has affected most of the industrial increases in the prices of food, public services, countries and by the threat of protectionist and energy-related goods and services in most pressures in some of them. To some extent, the countries, makes internal economic manage- countries in the region are trying to compensate ment a difficult task. for these factors by intensifying efforts to expand Inflation, in particular, remains a seemingly exports to other developing countries, both out- intractable problem in many countries. The con- side and within the region. In order to remove sumer price index is estimated to have risen at an some of the obstacles to the progress of average rate of more than 50 percent in 1980, 62 1981 Regional Perspectives with the lower inflation rates-between 10 per- tion of the region lived in towns and cities; in cent and 25 percent-in the countries of Central 1980, the region's urban population of some 200 America and the Caribbean and the most acute million made up almost 60 percent of the total. cases ranging from about 60 percent to about 100 By the end of the century, there may be nearly percent in some countries of South America. 400 million urban dwellers, and the level of As a result of massive urbanization and the urbanization may rise to more than three quar- increased attention given by the governments to ters. In the 1950s and 1960s, urban growth was family planning and the provision of social ser- for the most part a function of migration from vices, the rate of population growth has leveled rural areas, as the rural poor, frustrated in their off or is even beginning to decline; it is still high, attempts to secure a decent living, sought a bet- however. The annual rate of natural increase is ter life for themselves and their families in urban estimated to be about 2.3 percent as of mid 1980. areas. In the 1970s, urban growth was primarilv a In addition, 42 percent of the population are less result of the natural increase of an already than fifteen years old. These young people con- urbanized population; nonetheless, the rate of tinue to enter the labor force at a rapid rate, urbanization in the 1970s showed little diminu- particularly in the urban areas, presenting multi- tion from the rate in earlier years, and it ple challenges. The first challenge is to maintain exceeded 3 percent in most countries and 4 per- a fast pace in economic growth and job creation cent in several. so that, at least, the present levels of unemploy- Within this general framework, there are ment and underemployment may be prevented important contrasts. The present level of urban- from increasing at a time of rising expectations ization, for example, exceeds 80 percent in and social tensions. A second challenge is cre- Argentina, Chile, and Uruguay, whereas it is still ated by the need for heavy expenditures to pro- less than a third in such countries as Bolivia, vide tolerable levels of housing and social Haiti, and Trinidad and Tobago. The degree to services to the increasing population, the bulk of which the urban population is concentrated in which will be concentrated more and more in the the largest city also varies-from more than half cities. This particular problem is analyzed in the in Costa Rica, the Dominican Republic, next six paragraphs. Jamaica, Panama, and Uruguay to less than 20 Latin America and the Caribbean is the percent in Brazil. Some of these cities are now developing region with the highest level of among the world's largest; Mexico City, which urbanization. In 1950, less than half the popula- grew from a city of 3.6 million people in 1950 to Lending to Borrowers in Latin America and the Caribbean, by Sector (USS millions. Fiscal year.) Annual average 1972-76 1977 1978 1979 1980 1981 Agricultural and Rural Development S 233.2 $ 507.0 $ 655.5 $ 405.0 $ 408.0 $ 923.2 Development Finance Companies 64.6 183.0 230.0 245.0 269.0 184.0 Education 34.3 59.0 33.7 52.5 32.0 82.0 Energy Oil, gas, and coal - - - - 78.5 27.0 Power 177.3 351.0 398.0 346.0 708.0 698.0 Industry 128.0 241.0 85.0 185.5 87.5 255.0 Nonproject 12.8 26.5 30.0 156.5 80.0 27.0 Population, Health, and Nutrition 5.2 5.0 25.0 - - - Small-Scale Enterprises 18.1 15.0 47.0 7.0 202.0 - Technical Assistance 2.7 - 11.0 - - 1.5 Telecommunications 25.1 60.0 33.6 - 44.0 - Tourism 8.6 42.0 50.0 52.5 - - Transportation 270.9 329.5 199.0 468.5 371.0 355.0 Urbanization 13.0 12.7 162.8 176.5 88.0 254.0 Water Supply and Sewerage 51.8 61.5 149.5 169.8 316.0 346.5 Total S1.045.6 $1,893.2 $2,110.1 $2,264.8 S2,684.0 $3,153.2 Of which: Bank $1,009.1 $1,868.2 $2,054.5 $2,232.8 $2,595.0 $3,119.0 IDA $ 36.5 $ 25.0 $ 55.6 $ 32.0 $ 89.0 $ 34.2 Latin America and the Caribbean 63 v ; ~~~~~~~~~~4 Constructing an irrigation system in Aguas Caliente, Mexico. one whose metropolitan area has an estimated circumstances, while adequate financial population of 14 million in 1980, and Sao Paulo, administration is complicated by the fact that whose estimated 1980 population of 12.6 million most cities receive only small shares of the represents more than a threefold increase since revenues collected within them. 1950, are outstanding examples. Price distortions in the markets for land and In the developed world, urbanization gen- public services in an environment of rapid and erally accompanied industrialization and eco- massive urban spread generate patterns of land nomic development. In Latin America and the use that are neither efficient nor equitable. The Caribbean, the pace and magnitude of urban- patterns of land use, lack of funds, and poor ization have greatly exceeded the growth of full- organization also hamper public transport, time jobs in many countries, as inward-oriented which often fails to meet the needs of poor industrialization ran into the limits imposed by neighborhoods. the size of the domestic markets. Furthermore, In one way or another, all these issues reflect in many countries, incentives for private invest- serious imbalances between the need for jobs, ment in capital-intensive machinery, legislation shelter, services, and facilities and the capacity of that restricts an entrepreneur's ability to control the public and private sectors of the urban econ- labor-related costs, and insufficient attention to omy to provide them. The result is a familiar the development of human capital and skills pattern of human misery in slum areas, a grow- have contributed to discourage most of the crea- ing concern about how cities can be managed, tion of new job opportunities. This situation is particularly as they grow larger, and a realization reflected in considerable underemployment. that inefficiently managed cities may retard Given existing standards and supply con- national economic growth. straints, many households are unable to afford shelter and basic services, municipal administra- The Response of the Bank tion is often given low priority, and the problems The Bank has chosen a selective approach to of city management are without historical prece- alleviation of the problems in this area. Many dent. Planning and expansion of urban infra- aspects of the urbanization process are still structure become extremely difficult under these imperfectly understood, and the magnitude and 64 1981 Reg onal Perspectives complexity of the issues have made it necessary scarce and regular incomes are low there will be to proceed slowly while the lessons of experience many to whom these solutions are not accessi- are being absorbed. ble. Several Bank loans for urban development The first element of Bank support in the have therefore incorporated components region was the provision of electricity, water sup- intended to create employment opportunities. ply, and sanitation in low-income areas of cities In one project, for example, a Bank loan for through a variety of projects, followed, in fiscal housing and urban infrastructure was cofinanced 1974, by an attempt to find direct solutions to the by a loan of $80 million from a private bank to problems of increasing the availability of shelter expand industrial and commercial free zones, for the urban poor, such as in the First Urban thereby generating new employment. More fre- Development project in El Salvador. Despite quently, direct efforts to generate employment much progress, however, a quarter of the urban opportunities have been incorporated in credit population of the region still lack water supply, programs for small enterprises, commercial as two thirds lack sewerage services, and nearly a well as industrial, and often on a very small scale third lack adequate housing. There is much indeed. demand for low-cost solutions affordable by Experience with shelter, urban services, infra- those of the poor who can contribute labor and structure, and employment components in limited cash pavments from earnings in the infor- urban lending has led to the conclusion that the mal sector. But the public and private sectors development of urban institutions is critical to have been slow to adapt their activities to help the successful efforts to adjust to the conse- meet this demand. The Bank, therefore, has quences of urbanization. Thus, the third loan to sought to assist governments in designing and Brazil for urban transport and the second urban financing projects that would institutionalize development loan to Mexico focused on institu- and standardize solutions to the challenge of tional growth and development of capacity to providing housing, services, and infrastructure. identify, appraise, and supervise urban infra- Many of the urban projects assisted by the structure and paving programs in medium-sized Bank are designed to provide serviced sites- cities. lots with water, sanitation, and other facilities- While many Bank-assisted urban projects and basic infrastructure that can be afforded by stress the search for direct ways of alleviating those whose incomes are low. One recent exam- poverty and the correction of market imperfec- ple, from fiscal 1980, was the provision of ser- tions, others emphasize improvement of the effi- viced plots at two sites as part of the Guayaquil ciencv of urban economies, notablv urban Urban Development project in Ecuador, which transport, administration, and city manage- emphasized the use of realistic and affordable ment. In addition, some of the Bank's work in design standards. Because of the scale of the the urban sector-most recently in Peru and problem, most projects of this kind cannot hope Brazil-has been focused on the issues of to reach more than a few of those in need. They national urban and spatial policy and on assisting can, however, be considered pilots for large- governments to consider objectively the costs scale programs and help provide the institutional and benefits of alternative patterns of spatial framework necessary to operate on a larger organization. scale. Many of the Bank's urban operations in the Serviced sites are a valuable means of provid- region of Latin America and the Caribbean are ing shelter, but many families are too poor to complex and some have multiple objectives. The afford even the modest solutions they offer. greatest challenge of project design is to create Recognizing this, the Bank has helped finance a balance between the need to resolve urgent several projects that are concerned with and interrelated problems and the need to areawide slum improvements, such as drainage strengthen many of the agencies that are respon- and paving, and has sought to reach the poor sible for urban operations. through financing construction-materials credits or home-improvement loans. Following earlier The Caribbean Countries projects in several countries, a loan in fiscal 1979 The past decade has been a difficult one for to Colombia provided for such improvements in the nations of the Caribbean. Manv are newly the Cartagena slums. independent and most are small islands, with Direct efforts to improve living conditions fragile economies. The problems of adjustment through sites-and-services and upgrading to being independent states in a world economy schemes have achieved some success, par- would have been immense even if the world ticularlv in establishing more realistic design economy of the 1970s had been as stable as that standards and housing norms and developing of the 1960s. Events since 1973-uncertain prices national or local institutions to expand the scale for the few primary products that they export, of such operations. Yet for as long as jobs are declines in earnings from tourism, dwindling Latin America and the Caribbean 65 foreign investment, higher energy costs, global opment, export industries, and mobilization of recession, and hurricane-caused destruction- domestic resources. have served to exacerbate the situation. The Bank continues to preside over the Carib- The magnitude of the problems facing these bean Group for Cooperation in Economic countries grew in 1980. Eastern Caribbean coun- Development. This group, founded in 1977 as a tries, struggling to recover from the worst storm response to the growing economic problems of of the century, hurricane David, in 1979, were the subregion, provides a basis upon which heavily hit by hurricane Allen in 1980. Oil prices external donors can understand the economies escalated rapidly. A scarcity of foreign exchange and can consider, in a coordinated fashion, the during the late 1970s has meant that applications appropriate financial and technical assistance to of fertilizers, insecticides, and fungicides have support the long-term economic programs of the been fewer than were needed; in 1980, producers countries in the area. of bananas and sugar, whose crops were not During the year, a subgroup meeting was held devastated by hurricanes, suffered significant in Barbados to seek ways to meet the external losses to diseases. Intensified recession in the financing needs of Dominica, St. Lucia, and St. industrial countries caused sharp drops in tour- Vincent and the Grenadines. A similar meeting ism during the 1980-81 season, a drop exacer- was held in Kingston for Jamaica. In addition, a bated by a sharp increase in air fares and, for subgroup meeting, held in Antigua, discussed some islands, a decline in the availability of char- ways to further economic development and ter aircraft. Although sugar prices were higher cooperation among the small islands that are than usual, few countries had bumper crops, and members of the group. increased earnings were small compared with shortfalls in foreign exchange in other sectors. Almost all Caribbean countries have ex- Bank and IDA Lending, Fiscal 1981 tremely difficult development problems. With Total Bank and IDA lending in the region in some exceptions-the smaller islands of the fiscal 1981 amounted to $3,153.2 million, some Eastern Caribbean are prime examples-well- $469 million above the fiscal 1980 level. A total of developed export sectors mean statistically high 53 loans and credits was approved. Lending for incomes per capita. The countries' small size, agriculture and rural development and energy however, limits their scope for increased produc- accounted for 29 percent and 23 percent, respec- tion and makes them, by necessity, heavy import- tively, of total lending in the region in dollar ers. In most of the recently independent terms. countries their colonial heritage has left the peo- Funds committed under cofinancing arrange- ple with high levels of education but, paradox- ments with the Bank and IDA reached $1,530.3 icallv, with relatively low levels of marketable million, or 42 percent below last year's level. skills in the labor force. Significant development Each cofinanced project attracted an average of in this area of the world will of necessity take a $118 million in cofinancing during the year, com- long time and be quite difficult to achieve. pared with about $156 million in fiscal 1980.' (See Foreign private investment, as well as Official table on page 80.) Development Assistance, will continue to be Disbursements on Bank loans to borrowing needed. countries of the region were $1,654.6 million dur- Perhaps the most promising trend during the ing the fiscal year. Disbursements of IDA credits fiscal year has been the slow but clear movement stood at $68 million for the same period. The toward responsible economic management in figures for Bank and IDA disbursements in fiscal several countries of the Caribbean. Most coun- 1980 were $1,414.2 million and $35.3 million, tries are beginning to take steps toward signifi- respectively. cant structural adjustments to the realities of the After a hiatus of six years, the Bank convened world economy. While the overall economic a Consultative Group Meeting in Paris, France, situation remains difficult and shows little sign of during the year to help mobilize cofinancing for rapid improvement, the countries themselves the 1981-85 public investment program of Peru. seem willing and ready to undertake corrective At the government's request, the Bank also measures. In response to one such change, the agreed to provide logistical and technical sup- Bank extended structural-adjustment assistance port for a meeting sponsored by the government of $22 million to Guyana in February 1981. This to enlist backing from private financial sources support emphasizes the evolution of the econ- for the program. omy through the long term and the economic policies that must be followed if real develop- ment is to take place. Typicallv, the Bank is trying to help countries to concentrate on issues I Cofinancing data have been compiled from World Bank reports of projects at the time of their Board approval and do not reflect such as energy conservation, agricultural devel- changes in amounts since that time. 66 1981 Regional Perspectives Bank and IDA: Trends in Lending, by Sector, 1979-81-Amounts (US$ millions. Fiscal years.) 1979 1980 1981 Bank IDA Total Bank IDA Total Bank IDA Total Agriculture and Rural Development $1,568.1 $ 953.7 $ 2,521.8 $1,700.4 $1,758.0 $ 3,458.4 $2406.0 $1,357.0 $ 3,763.0 Development Finance Companies 559.0 32.2 591.2 743.0 74.5 817.5 1042.0 70.5 1,112.5 Education 245.5 250.5 496.0 360.1 80.0 440.1 374.6 360.7 735.3 Energy Oil, gas, and coal 82.4 30.0 112.4 328.5 128.5 457.0 564.0 95.5 659.5 Power 872.5 482.4 1,354.9 1,584.5 807.8 2,392.3 1,282.5 40.5 1,323.0 Industry 721.0 121.5 842.5 393.5 29.0 422.5 475.8 409.7 885.5 Nonproject 301.5 105.0 406.5 280.0 242.5 522.5 789.0 223.0 1,012.0 Population, Health, and Nutrition 17.0 97.0 114.0 65.0 78.0 143.0 12.5 - 12.5 Small-Scale Enterprises 69.6 16.0 85.6 222.0 38,0 260.0 157.5 71.5 229.0 Technical Assistance - 29.7 29.7 - 13.0 13.0 49.5 81.6 131.1 Telecommunications 110.0 - 110.0 66.0 65.0 131.0 - 329.2 329.2 Tourism 66.7 46.5 113.2 - - - - - - Transportation 1,430.9 473.5 1,904.4 1,205.0 239.5 1,444.5 763.0 299.8 1,062.8 Urbanization 297.5 12.0 309.5 249.8 99.0 348.8 459.0 42.0 501.0 Water Supply and Sewerage 647.3 371.5 1,018.8 446.4 184.7 631.1 433.5 101.1 534.6 Total $6,989.0 $3,021.5 $10,010.5 $7,644.2 $3,837.5 $11,481.7 $8,808.9 $3,482.1 $12,291.0 Bank and IDA: Trends in Lending, by Sector, 1979-81-Percentages (Fiscal years.) 1979 1980 1981 Bank IDA Total Bank IDA Total Bank IDA Total (%) (%) (%) (%) (%) (%) (%) (%) (%) Agriculture and Rural Development 22.4 31.6 25.2 22.2 45.8 30.1 27.3 39.0 30.6 Development Finance Companies 8.0 1.1 5.9 9.7 1.9 7.1 11.8 2.0 9.1 Education 3.5 8.3 5.0 4.7 2.1 3.8 4.3 10.4 6.0 Energy Oil, gas, and coal 1.2 1.0 1.1 4.3 3.3 4.0 6.4 2.7 5.4 Power 12.5 16.0 13.5 20.7 21.1 20.8 14.6 1.2 10.8 Industry 10.3 4.0 8.4 5.1 0.8 3.7 5.4 11.8 7.2 Nonproject 4.3 3.5 4.1 3.7 6.3 4.6 9.0 6.4 8.2 Population, Health, and Nutrition 0.2 3.2 1.1 0.9 2.0 1.2 0.1 - 0,1 Small-Scale Enterprises 1.0 0.5 0.9 2.9 1.0 2.3 1.8 2.1 1.9 Technical Assistance - 1.0 0.3 - 0.3 0.1 0.6 2.3 1.1 Telecommunications 1.6 - 1.1 0.9 1.7 1.1 - 9.5 2.7 Tourism 1.0 1.5 1.1 - - - - - - Transportation 20.5 15.7 19.0 15.8 6.2 12.6 8.7 8.6 8.6 Urbanization 4.3 0.4 3.1 3.3 2.6 3.0 5.2 1.2 4.1 Water Supply and Sewerage 9.3 12.3 10.2 5.8 4.8 5.5 4.9 2.9 4.3 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 NoTr: Details may not add to totals. due to rounding. 67 Chapter Four Bank Policies and Activities, Fiscal 1981 Bank Policies In Chapter Six, "Executive Directors," men- a fourth, or by approximately $25,000 million to tion is made of all those policy and operational $30,000 million (in 1980 dollars). issues examined and discussed by the Bank's The investment costs of a comprehensive Executive Directors during fiscal 1981. Some of energy program, including development of both those issues, such as the Bank's lending rate, are nonrenewable and renewable energy sources, reviewed at least annually. On other issues, such for all the oil-importing developing countries as the possible expansion of lending by the Bank during the decade (1981-90) would be at least and IDA bevond levels now planned for fiscal $450,000 million (in 1980 dollars). The $45,000 years 1982-86 and the valuation of the Bank's million-a-year average over the decade contrasts capital, the review is continuous (and oftentimes sharply with the approximately $25,000 million informal) and no decisions have been reached.' requirement estimated for 1980. On still other matters affecting the Bank's opera- Despite massive efforts by these countries to tions, however, the Directors reached a general mobilize the necessary financial resources, they consensus, the consequences of which are likely still require external technical and financial to have an impact on the Bank's investment assistance. Many are constrained from obtaining portfolio in the years ahead. Three of those the needed assistance by lack of creditworthiness issues are discussed in the pages that follow. for commercial finance, uncertainty about their They concern energy, structural-adjustment domestic energy-resource bases, and inadequate lending, and agricultural research. domestic policies and institutions. Commercial banks and oil companies, aware of these con- Energy straints, have further inhibitions of their own: The energy work of the World Bank is the banks show little willingness to provide the designed to help developing countries maintain large sums needed to finance construction of the economic growth at a reasonable level of about 6 infrastructure that would be required for percent a year and to ensure that their energy exploitation of indigenous reserves of gas, coal, demands are met without causing additional and hydroelectric power; the oil companies, par- strain in world markets. The main requirement ticularly the large ones, are often more for accomplishing this aim is a combination of interested in oil for world markets, and they seek greater indigenous energy production and more protection against political risks, including effective management of energy demand. nationalization. The Bank is well placed. as the On the supply side, the increase in the real largest source of public support for the develop- price of oil has made attractive the exploitation ment of energy resources in developing coun- of reserves of oil, gas, coal, and hydroelectric power that was formerly thought to be IOn the first-named issue, the Directors noted that changes in the uneconomical. Shortages of fuel wood are com- environment in which the Bank operated constituted a powerful in many o the pooest oil-mporting case for expansion of lending. But many of the same factors mon in many of the poorest oil-importing underlying the case for expanded lending had also served to developing countries, and for them rapid increase the pressurc on budgetary expenditures in many coun- deforestaton is as svere a contraint to tries that were important suppliers of capital to the Bank. The deforestation is as severe a constraint to aconflict between evident needs and constraincd budgets was the development as dependence on imported oil; crux of the problem facing the Bank. It was a subject that could reforestaion progrms are ths clearlyneeded. be dealt with conclusively neither in fiscal 1981 nor in the near reforestation programs are thus clearly needed. future. Furthermore, it is a problcm that could likely preoccupy On the demand side, rationalized pricing the Board for the decade of the 1980(s. On the second issue, the Directors agreed that the Bank policies for energy supported by effective fiscal should, to an appropriatc extent, make use of the special drawing and regulatory measures could bring about sub- right (SDR) as its unit of account. A staff study is to be prepared in fiscal 1982 on the steps that could be taken to this cnd~ that stantial conservation of energy and increase the study will be submitted to the Dircctors for their consideration efficiency with which it is used. before July 11, 1982. so that appropriate changes in the Bank's practices in this respect might he implemcnted beginining on that The Bank has estimated that the oil-importing date. The Directors also agreed to address promptly the question developing countries, through a concerted pro- of the valuation of the Bank's capital with a vicw to achicving a final solution by July 1. 1983. In the meantime, however, capital gram of maximizing their production of energy subscriptions to the Bank will be accepted at 1.20635 current and improvig efficienc in the useof energy, United States dollars equal to one 1944 gold dollar, subject to the and improving efficiency in the use of energy, Possibility that adjustment may be required when the standard of could reduce their bill for imported oil in 1990 by value issue is settled. 68 Bank Policies and Activities, Fscal 1981 "Rapid deforestation is as severe a constraint to development as dependence on imported oil." tries, to act as a catalyst for the mobilization of project in fiscal 1977-si150 million for develop- financial resources in addition to its own assis- ment of the Bombay High discovery in India-to tance and to facilitate contracts between oil corn- twelve projects, for a total of S649.5 million in panies and developing countries, loans duringy fiscal 1981. Involvement of the Bank. The evolution of Strong interest in such lending has been shown Bank policies designed to hielp assist the by member developing countries and by many development of energy resources in the Bank's oil companies, which value the presence of the developing member countries has been detailed Bank as an objective party and appreciate the in the Annual Reports for 1978. 1979. and 1980. need for preparatory work. Eighteen private oil In August 1980. a comprehensive review of the companies are now working with the Bank on energy situationi in developing, countries was projects that have been approved or are in prep- discussed by the Executive Directors. The aration in seventeen mnember countries. Directors approved at that time a further broad- Electric power, a sector to which the second ening of the Bank's activities in the energy sector largest volume, after agriculture, of lending by to emphasize management of demand for energy the Bank has gone, will continue to dominate the in all sectors, to give creater attention to energyv Bank's lending for energy as it dominates the needs in ruiral areas, to support the development public investment programs of developing coun- of renewable sources of energy. ar.d to increase tries. On the basis of the Bank's current esti- the use of aas to meet the eneray needs of mates of least-cost programs. hydroelectricity developing countries, will receive strong emphasis, as will geothermal Energy Subsector Lending. Lending by the energy, resources for which are promising, and Bank for oil and gas has grownt rapidi from one the Bank will continue to stress cofinancing and Structura Adjustment Revew 69 mobilization of internal resources through sound renewable sources other than hydroelectric financial management and rational tariff poli- power is unlikely to be more than 5 percent of cies. In fiscal 1981. seventeen electric power pro- total lending for energy. jects were assisted with $1,323 million in Bank Trends through the 1980s. The S13,000 million loans and IDA credits. lending program of the Bank for fiscal 1981-85 AcceleratedlendingbvtheBankforcoalmust for energy-related development of all kinds be preceded by earlv emphasis on exploration reflects these factors and policies. The "desir- and preinvestment work, including substantial able" program, discussed by the Board in technical assistance to familiarize the govern- August 1980-of some $25,000 million-could ments of the thirty or more developing countries not be financed by the Bank without upsetting that have coal resources with the technical, the overall sectoral balance of its lending. economic, and managerial aspects of coal min- In June 1981, the Executive Directors of the ing, handling, and use. Priority is therefore Bank met to discuss ways by which additional given to exploration and preinvestment work, resources could be channeled by the Bank, or rehabilitation and expansion of existing mines, possibly, through an energy affiliate of the Bank, and the development of the production of coal to the oil-importing developing countries so that on a small, medium, or large scale for domestic the production of indigenous energy supplies consumption and on a large scale for export. In might be expanded. all instances the Bank supports the development Discussion focused on aspects of the Bank's of the associated transport infrastructure. In fis- role in support of expanded energv investments; cal 1981, one loan, for $10 million, was approved the need to mount a comprehensive program of for the development of coal. support for energy investment that was fully Lending by the Bank for energy from renew- integrated into the reoriented development able sources-in addition to its lending for strategies made necessary by high-cost energy; hydroelectric power-is primarily to assist de- the need for the program to serve as a catalyst to veloping countries to meet their critical needs mobilize additional finance for this purpose from for fuel wood and to develop their potential for all sources and, in particular, private capital; and producing alcohol from biomass as a substitute the need for the Bank to act as a lender of last for gasoline, and, possibly. for use as chemical resort to finance investments that are not attrac- feedstocks. It is estimated that a fivefold increase tive to private capital. in the present rate of planting would be needed There was agreement that the oil-importing to ensure a reasonable balance between the developing countries were faced with a serious demand for fuel wood and supplies of it in challenge in maintaining the pace of develop- developingcountriesbytheyear2000. The Bank ment at a time of persistently high energy costs hopes to continue to expand its lending for fuel and that a major increase in their investments in wood so as to help the developing countries to at indigenous sources of energy is required. The least double the present rate of reforestation by Directors of the Bank also agreed that it was 1985 and to create the technical and institutional essential that momentum be maintained in infrastructure that larger planting programs in defining the role of the Bank in helping the oil- the future would require. Lending for fuel-wood importing developing countries overcome their development has risen substantially in recent energy problems. The Directors therefore years: in fiscal 1981, total forestry lending agreed to continued discussions on the Bank's amounted to $114 million. Of that total. funds for program to assist the oil importers and the fuel-wood development accounted for about S50 means of financing that program. million. Lending for the production of alcohol will be encouraged where it is economically Structural Adjustment Review promising-that is, in countries, such as Brazil, In fiscal 1980, the Executive Directors that have the potential for producing low-cost approved the initiation by the Bank of struc- biomass or in those that have "surplus" biomass, tural-adjustment lending-that is, lending usuallv molasses, that can economically be con- designed to support major changes in policies verted to alcohol. (In fiscal 1981. a $250 million and institutions of developing countries that loan was approved by the Bank to support would reduce their current-account deficits to Brazil's National Alcohol Program.) Such proj- more manageable proportions in the medium ects presage a more aggressive approach to other term while maintaining the maximum feasible alternative and synthetic fuels as proven technol- development effort. They also agreed to review ogy for producing them becomes avail- this initiative during the course of fiscal 1981 in able and appropriate and their economic the light of an evaluation of loans already implications are better understood. During approved and of possible changing circum- 1981-85. however, lending for energy from stances in the world economy. 70 Bank Policies and Activities, Fiscal 1981 The review concluded that Bank operations in forms of program lending will reach 10 percent of this area can be helpful in accelerating policy the Bank's overall lending program in the reforms designed both to achieve a minimum immediate future. level of development and to restore balance-of- It has been recognized that structural-adjust- payments viability. This is because structural- ment lending by the Bank is complementary to adjustment lending consists of financial support support for adjustment programs provided by for specified programs of monitorable and time- the International Monetary Fund, particularly in bound policy action by governments. It is those countries that have agreed upon a three- therefore unlike project lending, in which the year program with the Fund. This has required needs of the project tend to dominate the timing the development of procedures for ensuring of preparation and appraisal of an operation and closer collaboration between the staffs of the two in which disbursement of Bank funds is linked to institutions while they retain their independent project implementation. Project lending, responsibilities. These procedures are now in however, must complement structural-adjust- effect. ment lending. Policy and institutional changes During fiscal 1981, seven structural-adjust- agreed to under structural-adjustment lending ment loans, totaling $717 million, or about 7 operations, for example, have been supported percent of the lending program of the Bank and further by Bank loans for agricultural research in IDA, were approved. Recipient countries in- Senegal, loans to state economic enterprises in cluded Guyana, Malawi, Mauritius, the Philip- Turkey, and loans to the industrial sector of the pines, Senegal, and Turkey (two loans). Philippines. Because adjustment policies that are needed Because structural-adjustment assistance is to support changes in the structure of the growth meant to help developing countries reestablish of output in the medium term vary from one workable balance-of-payments positions in the country to another, the Bank's structural-adjust- medium term while maintaining the maximum ment lending policy has been designed to be feasible development efforts, it is, of course, still flexible, so that the content of structural-adjust- too early to draw any firm conclusions about the ment assistance can vary according to country effectiveness of the programs agreed upon for circumstances. achievement of these objectives. Fewer than a Most programs supported by assistance from dozen and a half countries, moreover, have the Bank, however, have included policy changes adjustment programs that are either being sup- designed to initiate corrections of biases in ported under already approved structural- incentive systems that deter exports and pro- adjustment loans or for which preparatory work mote uneconomical import substitution. Struc- and discussions have begun-a number far tural-adjustment lending to the Philippines, for smaller than the number of countries that need instance, has provided support for the beginning to implement such programs. The difficulty that stages of a five-year program to correct such governments find in gaining political acceptance biases. Import liberalization and export incen- for the adoption and implementation of struc- tives are features in the programs for both tural-adjustment programs has been and con- Turkey and Kenya; a moderately higher and tinues to be the single most important obstacle to more nearly uniform rate of import duties and a rapid progress by the Bank with structural- limited system of export subsidies form a part of adjustment assistance. Often the need for struc- the policies of Senegal. tural adjustment is greatest in those countries Some of the schemes to reduce the bias against that find it most difficult to adopt effective pro- exports have been extended to agricultural grams. In some of these countries, the Bank has exports, as well. Country examples include supported policy improvements on a more Senegal, where the government has increased limited sectoral basis in the hope that they could the price of groundnuts, the principal export be broadened gradually. The emphasis in these crop; Bolivia, where producers of beef, dairy operations has been on reform of policies and products, and poultry are receiving higher institutions in priority sectors and subsectors of prices; and Guvana, where improvements in an economy-agricultural rehabilitation in incentive prices have been given to producers of Sudan and export rehabilitation in Tanzania, for rice and sugar. example. Most structural-adjustment programs sup- Lending for structural adjustment programs ported by the Bank have also included appropri- must be found from within the total resources ate institutional changes. In Senegal, reforms of available to the Bank and IDA. Thus, the the public-sector institutions responsible for amounts devoted to such programs inevitably agricultural development are at the heart of the restrict the amounts available for normal project program; improvement in the efficiency of state lending. It is not, however. expected that the economic enterprises is also an important fea- total lending for structural adjustment or other ture of Turkey's program. improvements in Agricu tural Research 71 institutional support to nontraditional exporters tions. Whenever it can be done, the number of are a part of programs supported by the Bank in staff should be increased in such cases, training Guyana, Kenya, the Philippines, and Turkey. programs should be expanded, and qualified Other common features of structural-adjust- managers recruited. No less important are ment operations include a review by govern- serious efforts to reduce the gap between labora- ments of the level and composition of public tory research and its extension to the farmers' investment expenditure and of government fields. Substantial progress in this direction recurrent expenditure and measures to increase has been made through new approaches to the mobilization of private savings in the face of agricultural extension. falling rates of growth of real national income. For more than a decade, the Executive Direc- tors of the Bank have supported the efforts of Agricultural Research member developing countries to build up their As reserves of arable land that can be put to national research institutions. They have recog- the plow decline, much of the food for a growing nized that funds allocated for agricultural population will have to come from increases in research can be an efficient source of agricultural yields on land that is now under cultivation. growth and can yield greater economic returns In the mid 1960s, largely as a result of interna- than other possible investments in rural areas. tional research, several varieties of improved Consequentlv, research and extension have been seeds were developed that, when combined with among the most rapidly growing activities in the fertilizer and appropriate water conditions, were agricultural and rural development portfolio of capable of increasing the yields of rice and wheat the Bank; in fiscal 1980, they accounted for about substantially. Despite these convincing advances $400 million, or roughly 9 percent of the nearly in research, however, and the subsequent expan- $3,460 million in lending for agricultural and sion in the area under cultivation in these two rural development. An additional $11.7 million cereals, many developing countries continue to was granted to the Consultative Group for Inter- attach low priority to agricultural research. Two national Agricultural Research (CGIAR) for significant indicators of this low priority are: support of international agricultural research. -The money spent on agricultural research in Bank assistance for agricultural research has Africa, Asia, and Latin America, while increas- generally been of four types: ing steadily through the years, still accounts for -agriculture and rural development projects no more than a fourth of the estimated $5,000 that have adaptive research and extension com- million now spent on agricultural research ponents; throughout the world. -national or statewide research and exten- -The number of agricultural research scien- sion projects-by far the largest and fastest- tists in the developing countries is grossly inade- growing category; quate; their number-about 23,000, excluding -education projects that include agricultural those in China-corresponds roughly to the total components; and number in Japan alone. -grant funds for the CGIAR. Partly because of inadequate funding and a In approving these projects-some thirty in lack of trained manpower, some research proj- number and $721 million in cost, between fiscal ects, particularly in the low-income countries, 1971 and fiscal 1980-the Executive Directors are poorly designed and slow to be imple- have tried to ensure that the principal objectives mented. Many of the national programs are of research are the improvement of food crops limited in scope and they are typically the and the development of simple technologies that weakest links in the global research effort. small farmers can afford. Nevertheless, the Despite wide diversity in research capabilities Executive Directors realize that better among countries, a number of those weaknesses technologies suitable for use by low-income pro- have been identified. There is a general lack of ducers, especially those living in agriculturally appreciation by governments of the role that marginal areas, are still needed. effective research plays in agricultural growth As the need for food grows. many developing and development; deficient organizational struc- countries will be required to increase food pro- tures for research and extension result in frag- duction bv about 3 percent to 4 percent a vear. mentation of effort and weak linkages between Many of these countries will have to increase research and extension and the generation of their investment in agricultural research sub- research results that have practical value to farm- stantially if these production goals are to be ers; and training programs for research scientists achieved. An annual increase of about 10 per- and technicians are generally deficient. cent in investment for research would be There is an urgent need, therefore, to appropriate in many countries. For these coun- strengthen the administrative and technical tries, an expenditure for research equal to about capabilities of many national research institu- 2 percent of agricultural gross domestic product 72 Bank Policies ond Activit'es, Fiscal 1981 Scientists selecting high-yield corn seeds at Uttar Pradesh Agricultuiral University (Pant Nagur, India). would not be unreasonable; the average for all The present emphasis of research on food the developing countries was 0.31 percent in crops, low-incomie groups, and low-cost 1975. technologies will continue. T'he aim of projects In preparing guidelines for the future, which supported by thie Bank will he to achieve a are outlined in the June 1981 publication, proper balance in funding between research and Agricultuiral Research Sector Policv Paper, the extension; an appropriate link-age between Executive Directors have recognized that the national efforts and local activities and between WVorld Bank must take the lead among interna- the work of international reseatrch institutions tional institutions in supporti n- national and that of national oreatnizations will be research. They have approved steady increases encouragyed. While the emphasis will be on in the Bank's five-year lendinga program for applied research, support for miore basic agyricultural research and extension--from about research will be offered seleeti% elv whiere poten- S330 million in fiscal 1979 to miore than S550 tial benefits seem to warrant oiOfa lead time and million in fiscal 1984 (in constant U.S. dollars). commitmient of substantial resources. Economic Development nstitute 73 Bank Activities Economic Development Institute of national economic management, the other on the design and implementation of projects for The Economic Development Institute (EDI) meeting basic needs, gave an opportunity to has been concerned for more than twentv-five explain Bank policies and discuss some recent years with the training of senior officials of the Bank research. The EDI organized the first of member developing countries of the Bank, help- three seminars on preinvestment work for resi- ing them to improve the management of their dent representatives of the United Nations economies and to increase the efficiency of their Development Programme (UNDP) and their investment programs. The target group for deputies and continued its collaboration with the training comprises officials of ministries of United Nations Institute for Training and finance and planning, agencies dealing with Research on a bilingual (English and French) various sectors of development, and central seminar on economic development and its inter- banks and development-finance institutions A national setting for members of national delega- particular feature of the intensive courses and tions to the United Nations. seminars given by the EDI is that they draw on The EDI and the Association of Development the working experience, policv analvsis. studies Financing Institutions in Asia and the Pacific of comparative development, and other empiri- (ADFIAP) offered a seminar in Washington cal research of the World Bank. for the training of directors of development The training materials produced by the EDI banking institutions. Another seminar on train- are in English, French, and Spanish, and the ing methodologies, in Spanish, was also held. subjects that they cover range from macroeco- One course in Spanish, on rural development nomic planning, pricing, and development projects, and two courses in French, one on policy to the design. appraisal, execution, and national economic management, the other on evaluation of the effects of investment projects: education programs and projects. were held. most of the courses that deal with projects are Fiscal 1981 marked the beginning of participation now organized sectorally. Since the mid 1970s by the EDI in the training of Chinese officials the EDI has greatly extended its training with a seminar on project planning for senior activities in the developing countries, in col- officials held in Washington, followed by a laboration with selected regional and national course on general project planning in Shanghai. institutions. The aim is to make them able even- In Africa, the EDI cosponsored six regional tually to continue and extend training courses of courses and one regional seminar, in addition to the same type on their own. This is the main a railway course for francophone African coun- direction of the Institute's current growth. tries, organized with the International Center Fiscal 1981 marked the third vear of the EDI's for Management Development in Romania, and five-year program. which covers the fiscal years a seminar on regional development planning for 1979-83. In keeping with the aims of the pro- francophone countries, held in France in coop- gram. reviewed annually by the Executive Direc- eration with the Agence Francaise Cooperation tors. the EDI continued its emphasis on giving et Amenagement. The EDI continued its pro- more short seminars, primarily in Washington, gram of regional courses given in cooperation for senior officials, specialists, and trainers. The with the United Nations Center for Human Set- fiscal 1981 program in Washington included eight tlements with two courses on the design and courses and nine seminars for more than 400 execution of urban projects, one in French, participants and twenty-five regional and eigh- given in Senegal. the other in English, given in teen national courses and seminars for more Kenya. Also as part of a continuing program in than 1,200 participants. development banking in cooperation with the The Washington program included a new African Development Bank and the Association course on the management of rural development of African Development Finance Institutions, projects and a seminar on the design of rural two courses were given in the Ivory Coast, one in projects. On the basis of this experience, courses English and the other in French. Two regional on the organization and management of rural French-language courses in the rural sector were projects are expected to become a regular fea- held: a course on rural development projects in ture of the program of the EDI. Two new the Sahel was cosponsored by the Communaute seminars, one on the monitoring and evaluation Economique de l Afrique de l'Ouest and the 74 Bank Policies and Activities, Fiscal 1981 Institut du Sahel in Senegal, and a course on BIDS, one on population and health, the other management of rural projects, cosponsored with on project management; and two courses given the Pan-African Institute for Development and in Pakistan-project management and agricul- the African Development Bank, was held in tural project analysis, and a seminar on invest- Cameroon. The EDI conducted a regional ment analysis, decisionmaking, and implemen- seminar for senior transport officials in Kenya, tation-in cooperation with the Planning Divi- similar to seminars held earlier in Asia. In sion and other government departments. The Nigeria. the EDI and the Ministry of Water EDI, the government of India, and the Resources conducted a workshop for Nigerian Administrative Staff College cosponsored a officials on management of planning for water- seminar on development policy analysis as it is supply and waste-disposal agencies. The EDI related to investment decisions. also cosponsored, with the Bank's Africa depart- In Latin America and the Caribbean, the EDI ments and the Commonwealth Secretariat, two continued its regional program in cooperation seminars in London on structural adjustment with the training unit of the Association of policies in Africa. The EDI plans similar Argentine Banks (ADEBA) and the Centro de seminars in fiscal 1982 for francophone African Treinamento para o Desenxvolvimento Econ6- countries, proposed to be held in Yaounde, mico (CENDEC) in Brazil. The EDI cospon- Cameroon, and Dakar, Senegal. sored two courses with ADEBA, on develop- In Egypt. the EDI and the Institute of ment banking and agroindustrial projects, and National Planning continued their collaboration two with CENDEC, on national economic with a senior seminar on agroindustrial project management and rural development projects. A analysis, a course on agroindustrial project fifth regional course, on education programs and analysis, and a course on design and implemen- projects, given for officials from Latin America tationofagriculturalprojects. AlsoinEgypt,the and Spain, was cosponsored by the Spanish seminar for senior transport officials and the Ministry of Finance. The EDI and the Centro de transportation projects course, cosponsored by Capacitaci6n y Desarrollo cosponsored two the Transport Planning Authority of the Minis- national courses in Mexico, one on rural try of Transport, were repeated. development projects, the other on managing In Asia, the first of a series of regional courses urban growth, of which the Ministrv of Human on the organizational and financial aspects of Settlements and Public Works was also a cospon- power projects was held in Thailand in coopera- sor. The EDI helped to organize the third meet- tion with the Electricity Generating Authority of ing of representatives of Ibero-American train- Thailand. The regional program of training for ing institutions held in Barcelona, Spain. development banking officials requested by the The EDI also assisted with the design of cur- ADFIAP last year continued with four courses re Irincula and the identification of lecturers and two given in Tndia at the Management Develop- tann a togvn mIdaa h aaeetDvlp trainin- materials, and in some instances it pro- ment Institute and two given in the Philippines, vided oners an n w some tainstancesrt po- one at the Private Development Corporation of vddone to two weeks of teaching support for a the Philippines, the other at the Development number of regional and national courses con- the hlhplnes theothe at he Dveloment ducted by other institutions. Bank of the Philippines. The program is being supported by the UNDP, the United Nations Duringfiscal 1981, the EDl responded to more Industrial Development Organization, and the than 1,000 requests a month for training German Foundation for International Develop- materials such as case studies and course notes- ment. Other regional courses cosponsored by five times as many as in fiscal 1980. Approx- the EDI included a transportation projects imately 41,000 items were distributed during the course with the Bangladesh Institute of Devel- year. A number of manuscripts that have grown opment Studies (BIDS); two courses on out of teaching activities of the EDI were com- industrial projects with the International pleted, one was published, and two others have Development Center of Japan. to which partici- been accepted for external publication. An pants were invited from selected countries in increasing number of teaching materials is being Asia, the Middle East, and Latin America; and a produced in Spanish and French to meet the course on rural development projects with the expansion of the EDI's teaching program in University of the Philippines at Los Banos and these languages. the Southeast Asian Regional Center for Gradu- The EDI continued its efforts to evaluate its ate Study and Research in Agriculture. A new effect on the training programs of institutions seminar on metropolitan management, cospon- with which it is cooperating. In fiscal 1981, work sored by the Asian Development Bank, was on an evalution of the cooperative program in given for senior officials from Asian countries. Indonesia was completed and evaluation of two National courses and seminars included two programs, one in Pakistan and one in Argentina, courses given in Bangladesh cosponsored by was begun. Technical Assistance 75 Technical Assistance $25.1 million, up from $20.4 million in fiscal 1980. In response to the increasing demand for "The demand for Bank-supported technical assistance from the PPF, its commitment assistance, especially for the development of authoritv was increased in October 1980 bv $30 local capabilities, has grown in recent years, as a million to $87.5 million. result of the expansion and diversification of the The Bank continued to serve as executing Bank's portfolio of projects, the intensification agency for projects financed ba the United of institution-building efforts, and the increasingagec o rjcsfnne yteUie of mttonblngfotantemrsn Nations Development Programme (UNDP); the complexity of development tasks addressed by number of these that were in progress at the end the Bank's operations. The Bank's approach to of the yearstood at 138. up from 97 a vear earlier. technical assistance needs has been both prag- The technical assistance being provided under matic and flexible; there has been a wide variety these projects exceeds $149 million. Fifty-eight of approaches to meet the differing needs of indi- new projects, involving commitments of $41.7 vidual countries." So reads, in part, a document million, were approved during the year; the prepared for the Executive Directors on the number in fiscal 1980 was 45, involving commit- volume and types of technical assistance pro- ments of $20 million. vided by the B~ank during the decade of the vided. by the Bank during the decade of the The new projects include a $3.4 million proj- 1970s. ec oassist sixty participating countries in Technical assistance has long been an integral ect tossistheixty forticipat in their part of World Bank operations, and the volume, assessing their needs for assistance in their scope, and diversity of mechanisms used by the energy sectors, the first project of the Bank and Bank in providing it to member governments the UNDP in the People's Republic of China- Bank in toviding it to 1981. Thernmarv an 'umbrella" project for the preparation of continued to expand in fiscal 1981. The primary investment projects-and a technical-assistance way of providing technical assistance continued projinBva,s a techmcallv ito ne to be in loans made for specific sectors and in project i Bolvia, set up specifically to help the components of loans made for other capital pur- government carry out the program for which the poses In fiscal 1981, the amount of this technical Bank has made a structural-adjustment loan. assistance, includin funds provided for supervi- Near the end of the year, the Bank also signed, assisanc, includeaiong fnds prvidedo suervi-es with the UNDP and the government of Pakistan, sion, implementation, and engineering services. aprjcdouetfresgwrknth totaled $979 million, compared to $807 million a project document for design work on the allocated for this purpose in fiscal 1980. Loans Kalabah Dam. This project, for which the alloate fo ths prpoe i fical198. Lans UNDP will contribute $8 million, will be the extended for technical assistance in specific sec- UNDPwfune project for w he tors totaled $50 million in energy. $33 million in largest single UNDP-funded project for which power, $14 million in transportation, $17.7 in the Bank has served as executing agency. water supply and sewerage, and $14.7 in indus- One of the growing features of the World try. Among the large technical assistance com- Bank's association with the UNDP is the fre- ponents were $30 million approved in the China quency with which borrowers from the Bank are University Development loan and credit of $200 combining the proceeds of Bank loans and cred- million, $40.1 million of a $359 million loan to its with the grant funds of the UNDP for the Colombia for hydroelectric power. $26.3 million financing of technical assistance. By the end of of a $60 million loan to Brazil for agricultural the fiscal year there had been sixteen such research, and $12.8 million of an $85 million loan arrangements in which the World Bank was the to Bangladesh for a gas development project. In executing agency and fifteen in which some other addition, the Bank extended thirteen free-stand- UN organization served as executing agency. ing technical assistance loans and credits for a Efforts to associate technical-assistance grants total of $131.1 million. These went to Bangla- from bilateral sources with Bank lending con- desh, Cameroon, Central African Republic, tinued. A new arrangement was worked out with Egypt. Guyana, Madagascar, Malawi, Nigeria. Norway whereby the Norwegian government Senegal, Sudan, Tanzania, Uganda. and Zaire. will set aside 5 million kroner (about $1 million By comparison, in fiscal 1980. four such loans equivalent) a year for financing technical assis- and credits totaling $13 million, were made. tance needed in connection with Bank lending. A key stage in the project cycle at which the An arrangement with Japan for similar prein- Bank is called upon to assist its borrowers with vestment assistance to potential Bank borrowers technical assistance is during preparation. The was reaffirmed, and a review was undertaken Bank has been responding to that need through with Japanese authorities of studies that might be a Project Preparation Facility (PPF), created in undertaken in the coming year. 1975, under which the Bank advances funds to Demand for planning assistance has con- prospective borrowers to meet gaps in project tinued to grow. Specific objectives of planning preparation and for institution building. During and projects range widely. from reorganization fiscal 1981 advances from the PPF amounted to of national economies to strengthening of invest- 76 Bank Policies and Activties, Fiscal 1981 ment-preparation capacities in an individual years, at an estimated cost of $3.4 million. For ministry or at the provincial level. All projects, this purpose, the Bank made arrangements with however, have the general goals of promoting the Natural Resources and Energy Division of self-sufficiency in trained manpower and the UN Department of Technical Cooperation improving the efficiency of svstems for develop- for Development to obtain consultants to par- ment planning and implementation. ticipate in missions to seven countries. The Bank During fiscal 1981 the Bank continued as and the UN also agreed to exchange information executing agency for UNDP-financed planning on the assessments undertaken by each institu- projects in thirteen countries concentrated in tion. Exchange of information on the same sub- three regions. Projects were completed in the ject will take place between the Bank and the Maldives and Zaire; others were initiated in African Development Bank (AfDB) and as a Comoros, Djibouti, Rwarida, and the Yemen result the AfDB may also participate in Bank Arab Republic. The Bank also supervised com- energy-assessment missions to Africa. ponents of several IDA credits that involved the The Bank has participated in the preparatory use of technical assistance in developing plan- work for the UN Conference on New and ning capability. In Djibouti and Sierra Leone, Renewable Sources of Energy andwill attendthe the Bank supervised planning components of conference to be held in Nairobi, Kenya, in IDA and UNDP projects. August 1981. It will also participate in the Sep- Training programs carried out in association tember 1981 UN Symposium on Energy Planning with technical assistance were designed for to be held in Stockholm, Sweden. about 200 individuals, who represented twenty Energy was one of the principal subjects of nationalities. Trainees participating in these pro- analytical work and policy discussions with the grams improved their technical and managerial Organisation for Economic Co-operation and skills at institutions in both developed and Development (OECD) and its Development developing countries. Assistance Committee. The Bank and the Euro- The Bank also provides an array of technical pean Development Fund (EDF) also exchanged assistance outside conventional Bank opera- information on energy policy and investments. tions. Examples include short-term training; Cooperation between the Bank and certain secondment of advisers; transfers of technology, other international organizations is based on for- such as computer expertise; service on evalua- mal agreements such as the Cooperative Pro- tion and monitoring panels; and demographic, grams (CPs) between the Bank and the Food and financial, and economic advice on project prepa- Agriculture Organization of the United Nations ration. Reimbursable technical assistance to (FAO), the United Nations Educational, Scien- capital-surplus, oil-exporting countries of the tific, and Cultural Organization (Unesco), the Middle East is detailed on page 59 of this Annual World Health Organization (WHO), and the Report. United Nations Industrial Development Orga- nization (UNIDO). These CPs continue to assist Inter-Organizational Cooperation governments in the identification and prepara- tion of projects and to engage in sector survevs. Because the activities of the Bank cover most The Bank bears 75 percent of the costs of these of the sectors in development assistance, its rela- programs. Its aggregate share in fiscal 1981 was tions with other organizations concerned with $11,321,000. development, including those that specialize in The seventeen-year-old CP between the Bank particular sectors or geographical areas, are and the FAO remains the largest of the four. In extensive and varied. With the growing need to fiscal 1981 the program fielded 122 agriculture improve coordination among aid-giving agen- and rural development missions in thirty-eight cies, the Bank's relations with other institutions countries. It assisted countries in the prepara- have continued to grow in volume and fre- tion of more than a fourth of all agriculture and quency. Only a fraction of this extended network rural development projects approved for financ- of contacts can be mentioned here. ing by the Bank during the year. Like cooperation among sectors, cooperation The Bank-Unesco CP, also launched seven- with other organizations, both within and out- teen years ago, carried out analysis missions in side the United Nations, was particularly active the education sector or subsector in ten coun- in the energy field in fiscal 1981, in view of the tries and provided assistance with project prepa- importance of developments in that field within ration to twelve borrowers. In addition, it the Bank's own programs. The United Nations assisted in the completion phase of project work Development Programme (UNDP), for exam- and, to that end, organized missions to four ple, is providing financing for energy-sector countries in the course of the vear. Outside the assessments to be carried out by the Bank in CP, the Bank drew on the Statistical Office of sixty developing countries during three to four Unesco, exchanged views with its Science Policy Inter-Organizftional Cooperation 77 Division, and exchanged information with developed countries were initiated. Staff of the Unesco on population education and com- Bank-UNIDO CP carried out or took part in munication work. missions in support of Bank-initiated sectoral The CP with the WHO, initiated in 1971, con- studies and project work in various countries. centrated on sector work in its early years. In the They also provided support for activities in con- mid 1970s project preparation and specialized nection with the Investment Cooperation Pro- subsector work, such as tariff studies and man- gram of UNIDO and its consultations for power-development programs, were added. fertilizer and petrochemical industries. The During the past several years, the CP has Bank and UNIDO will review the CP toward the assisted governments by preparing rapid assess- end of calendar 1981 to identify outstanding ments and sector digests in connection with the problems and consider possibilities for future International Drinking Water Supply and cooperation. Sanitation Decade. So far, 105 rapid assess- The Bank also has an agreement with the In- ments, 116 sector digests, and 57 sector reports ternational Fund for Agricultural Development have been prepared. As a member of the Decade (IFAD) that provides for assistance by the Bank Steering Committee, the Bank is involved in in the preparation and appraisal of agricultural policy development, promotion, and coordina- and rural development projects for financing by tion of Decade activities and undertakes special the IFAD and for cofinancing. In fiscal 1981 the tasks, such as the development of project prepa- Bank assisted in the appraisal and supervision of ration guidelines for use bv governments and sixteen projects; eleven projects involved Bank multilateral and bilateral agencies, with the and IFAD cofinancing during the year. objective of easing the burden of project prepa- Finallv, among agencies with which the Bank ration of governments suffering chronic staff has formal relations, mention must be made of constraints in the water and wastes sector. the UNDP. for which, as noted in the section on To improve cooperation and to promote the Technical Assistance, the Bank acts as executing health effects of development projects in the agency for preinvestment projects. water-supply and sanitation sector, the Bank With the International Labour Organisation organized a Basic Needs Workshop for agencies (ILO), the Bank continued to hold informal con- active in that sector, held in Easton, Maryland. sultations in the education sector, particularly in in October 1980. This workshop and others that the field of training, through visits to and from are planned are designed to expand the coopera- ILO staff and staff of the International Center tion and joint project activities that already exist for Advanced Technical and Vocational Train- with the United Nations Children's Fund ing, in Turin, Italv. In addition, the Bank took (UNICEF) to appropriate nongovernmental part in the FAO-Unesco-ILO Inter-Secretariat organizations that are better able than the Bank Working Group on Agricultural Education and to operate at the grass-roots level and that have Training. more experience in community organization, The Bank is considering with the ILO the health education, and the like. Where govern- possibility of developing or adapting ILO ments agree, these organizations could become Modules of Employable Skills for use in Bank- executing agencies for Bank-assisted projects. assisted components of projects or sector-related In further support of the Decade, and in an training. The two organizations have agreed to effort to develop projects that are more cost collaborate in the evaluation of data concerning effective, the Bank is executing a number of income distribution. Common definitions of in- UNDP-financed projects. The first one, begun in come and horusehold will be used, and the 1978, involves the design of low-cost water sup- household will be the basic income unit in these ply and sanitation projects using appropriate data. Duplication of coverage of any country will technologies affordable even to low-income be avoided, and the findings of the country groups. Activities, including extensions of studies will be discussed periodically. By July applied research earlier completed by the Bank, 1981. studies of fifteen countries had been com- are going on in fourteen countries. Total project pleted by the Bank. The staff of the Bank and the value is about $100 million; the first projects are ILO collaborated in the Living Standards now being accepted for financing by IDA and Measurement Study, which is part of the re- bilateral agencies. search program of the Bank's Development The CP with UNIDO continued to emphasize Research Center. support of employment-intensive artisanal In the field of population. health. and nutri- activities and small-scale enterprises in manufac- tion, the Bank cooperated activelv with several turing and construction industries. In addition, organizations. The Director of its Population, studies for small-scale hydropower equipment Health, and Nutrition Department is now chair- and of industrial policy issues in the least- man of the Sub-Committee on Nutrition of the 78 Bank Po icies and Actvities, Fiscal 1981 UN Administrative Committee on Coordination UNCTAD in providing economic and social data (ACC); twelve international and nine bilateral on certain of the least-developed countries as agencies are represented on the Sub-Committee. background for the thirty individual country- As fiscal agent for and cosponsor with the review meetings leading up to the UN Con- UNDP and the WHO of the Special Program for ference on the Least Developed Countries, to be Research and Training in Tropical Diseases, the held in September 1981. Bank continued its support of research into new Bank staff also participated activelv in the and better methods of treatment and control of deliberations of the UN Committee on Develop- six major tropical diseases. It will contribute ment Planning and the ACC ad hoc Task Force $2.48 million to the financing of the Special Pro- on Lono-Term Development Objectives. gram during calendar 1981. With the WHO, it participated in the desian of a research and Borrowers from the Bank are turning more development program for the control of diar- and more to UN agencies for assistance in the rheal diseases through more effective methods preparation and implementation of Bank-sup- of preparation. dissemination. and use of oral ported projects. In fiscal 1981 total disburse- rehvdration therapy and by providing environ- ments to UN agencies through Bank loans ana mental and personal health services. The Bank IDA credits amounted to approximately $16 also participated in the meetings of the Hlealth million. Funds provided to borrowers through 2000 Resources Group sponsored by the WIO, Bank loans allow governments to supplement the aim of which is to monitorthe mobilization of UNDP financing for projects executed by other resources and the use of resources in the li-ht of gencies of the United Nations. For two civl investment experience, aviation projects in Latin America, for example, A Committee of International Development the Bank deposited approximately S2.3 million Assistance Commituteeions Inther l Development W with the UNDP for activities to be undertaken Assistance Institutions on the Environment wats bv h nentoa ii vainOenzto established in 1981, with the United Nations ytheInternationalCivilAviationOrganization Environment Programme (UNEP) as the Secre- as executing agency for those projects. tariat, to give effect to the Declaration of In line with efforts made in the past to develop Environment Policies and Procedures Relating closer links with nongovernmental organizations to Economic Development, which the Bank and (NGOs) engaged in development assistance, a other agencies adopted last year. Further harmo- program was initiated to systematize and expand nization of environmental policies, programs. cooperation with those organizations. Types of and performance will be sought through linkage cooperation may include, with the approval of with bilateral development aid agencies. The borrowers, contractual participation of NGOs in Bank's Office of Environmental Affairs also held Bank-assisted projects as consultants or as consultations with other agencies on the Region- executing agents for project components, al Seas Programme of the UNEP, on control of exchange of information between the Bank and desertification. and on such other subjects as the NGOs in the various phases of sector and project management of tropical forests and the use and work, and coordination when it may be regulation of pesticides. appropriate, between Bank and NGO projects In the field of research. the Bank continued to already planned or under wav. A workshop was expand its already considerable relations with organized with selected NGOs from Europe, other multilateral and national institutions. It Japan, and the United States on assistance to collaborates, for example. with the FAO, in small-scale enterprises, thrift institutions, and reassessing methodologies for estimating the institution building in developing countries. In prevalence of nutritional deprivation. With the order to promote further cooperation. a Bank- International Food Policy Research Institute a NGO liaison committee was established. review of financial arrangements for food Cooperation in Agricultural Research. Sound security is under wav. With the International long-term programs of agricultural research are Development Research Centre in Ottawa. a vital part of efforts to improve agricultural Canada, the Bank cooperates in and jointly productivity and increase the supply of food in funds a five-year program of evaluation of urban developing countries. The Bank's agricultural shelter projects in selected developing countries; development projects includce ever greater pro- the evaluations are carried out in collaboration vision for the strengthening of the borrower's with local institutions. national agricultural research capacity. At the Members of the Bank staff seconded to the international level, the Bank joins with the FAO UN Conference on Trade anld Development and the UNDP in sponsoring the Consultative (UNCTAD) assisted in the drafting of the basic Grotip on International Agricultural Research documents on policies and procedures required (CGIAR), an informal association of donor for the operations of the Common Fund for countries, private foundations, international Commodities. Bank staff also collaborated with and regional developmcnt institutions, and Inter-Organ zational Cooperat on 79 countries representing the various regions of the agricultural technology for the foreseeable developing world. The Groups purpose is to future. Donors recognize the long-term nature support research to develop technology that will of their commitment. while remaining deter- make it possible for the developing countries to mined to ensure that the resources provided are produce more food. Its thirty-three donor mem- used to achieve the maximum effectiveness. bers will be providing grants amounting to Cooperation in Aid Coordination. At the nearly $141) million in calendar 1981 to support request of both donor and recipient govern- thirteeni international agricultural research ments, the Bank has continued to take the lead institutions.2 Followinig authorization by the in oruanizing various aid coordination mecha- Board of Governors in September 1980, the nisms for a number of developing countries that Bank is expected to contribute somc $14.6 receive assistance from bilateral and multilateral million of this amount during calendar 1981. sources. During the year. eleven aid coordinat- The network of activities supported bv the ing groups held formal meetings that were spon- Group includes nine international research sored bv the Bank. These were the country institutes, all based in developing countries and groups for Bangladesh. Burma, the Caribbean staffed and equipped to high international stan- nations, India (twice), Mauritius, Pakistan, dards. These institutes carrv out research on all Peru, the Philippines. Sri Lanka, Thailand, and important food crops, on livestock, and on farm- Zaire. The Bank also participated in a meeting ing systems, and they also maintain an important of the Inter-Governmental Group for Indonesia. training function. In addition, the Group sup- sponsored by the Netherlands. and the Turkey ports a worldwide effort to collect, conserve, Consortium, chaired by the OECD. and use genetic materials and supports research The many projects that the Bank and IDA on rice by an association of Western African help to finance jointly or in parallel with other governments, research on food policy, and national and multilateral organizations is an technical assistance to developing countries in indication of the close cooperation that exists the design and implementation of their own among the various development-assistance agricultural research systems. No additions to agencies. The numerous national and multilat- the svstem are envisaged for the coming year, eral orgamzations that Joined the Bank in help- but the Group, advised by its Technical Advisory ing to finance projects approved in fiscal 1981 are Committee, remains alert to possible new noted in the project summaries, to he found on research activities of high prioritv that might pages 99 through 119. ontribute significantly to the fulfillment of its In an effort to strengthen its cooperation with objectives, regional development banks, the Bank and the Asian Development Bank (AsDB) reached an The CGIAR has grown rapidly since its for- understanding on cofinancing projects in three mation in 1971, and it is now an established and South Pacific islands that are members of both significant part of the international development institutions, namely, Fiji, Solomon Islands, and community. In the immediate future, it expects Western Samoa. For projects in these countries the rate of expansion to be moderate. though that the Bank and the AsDB have agreed to there is no question as to the high prioritv that cofinance. the AsDB will act as the lead institu- donors continue to give to the research being tion and will carrv out project appraisal on supported. Donors have accepted an indicative behalf of the Bank, taking responsibilitv for financial plan that envisages steady but conser- project implementation and supervision. In fis- vative growth. The Group is now engaged in a cal 1981, this cooperation agreement was applied comprehensive evaluation of the scope of its activities and its present policies and procedures in orcder to define its objectives and plan its pro- gram for the next decade. The Group's or(anization is unique in a num- 2Ccritri. tn- arcional de Agriculiur, Iropicill CIL). (Ciall Uolombini~,: (cnzro ItercriLicional de Mai,rirvricrrlo de NEroii v ber of respects. It operates by consensus, with- ]ri0o (CIVl r) El Biin. loxcico:th lS incrnaioiinllL Inhttute out any formal legal framework. The flexibilitv 'iroc:l Agriculiuro lilA. ihad.ri. Nii. h litcrirril Rii e,ach fairjitutc ( iRRI ). i.ir.. Birn-, ibis Philippine,, tSo thereby provided has been a source of strength Interriacional iNicstock (cncr)or Aficn.icl_(AJ. Addi, Albabi. and has enabled the Group to move rapidly in l thioipi:. lo l lcrional laliu[briitirri for Rosccich oni Anim.il Di,ca... ( ILRADJI Nairobi. Kema.. tihc liitirii.iiioiil Btoird liir the establishment of its present array of 'i,iGiicn, n Rcsiorco, l(1PO'GR). Rorimc. lz,ik. Stic iitcriia activities. Although the total resources chan- (i,n;il m( ciimrr Aoricicirturl Rccsci cli in Se ODr% Area. iIiARDA). Ocrl cio.and AIloppo 5N[rI,: hrl W\'rc neled through the CGIAR are modest in rela- Alrican Rice D)cwlopmnicnt A\socintioni iWARRDA, M.oi,rosia. tion to the investments being made in agricul- 1 rioInl ( mtCpiOR Ccnrchilr,con,titut, trp (Iith' cniiiA Pcro pic tural research throughout the developing world. (IU(RISAI ) i'ldcrzLirhd. irAIn ,hc Inicr,i.rn.,l Food Polic' the international centers will continue to per- .Tcrl tintiitict-li. VScmiccoiitigion.lE . A-iiai,ltrlc SRcicsr form a critical function in the development of iSNAR . rl(lo HInI, the Ncilicrl,an,. 80 Bank Policies and Activities, Fiscal 1981 Cofinancing of Bank- and IDA-Assisted Projects, by Region (USS millions. Fiscal years.) 1978a 1979, 1980;' 1981' Number Number Number Number of Amount of Amount of Amount of Amount Region projects cofinanced projects cofinanced projects cofinanccd projects cofinanced Eastern Africa 14 $ 227.8 19 S 522.7 14 S 433.2 15 $ 179.8 Western Africa 18 186.9 IS 107.3 19 630.4 12 178.8 East Asia and Pacific 10 208.4 13 496.3 13 917.5 9 1,027.7 South Asia 7 158.2 13 388.9 13 375.3 12 610.5 Europe. Middle East, and North Africa 19 946.8 28 949.9 18 1,508.2 18 510.9 Latin America and the Caribbean 13 698.3 21 683.8 16 2,651.7 13 1,530.3 Total 81 $2,426.4 109 $3.148.9 93 $6,516.3 79 $4,038.0 As a % of lending program 34 29 44 31 38 57 32 33 NOTE: Includes cofinancing from official and private sources, as well as suppliers' credits. Figures reflect revision in project finance plans subsequent to Board approval. Figurcs have been compiled from World Bank Appraisal and President's Reports at the time of Board approval. to the Second Western Samoa Agricultural De- and project analyses, to provide the analytical velopment project and a credit to the Develop- bases for Bank policy statements, such as the ment Bank of Solomon Islands, which were cofi- World Development Report, and to help nanced by the two institutions. In the Caribbean strengthen indigenous research capacity in Region, a similar technique has taken the form member developing countries. Research proj- of lending to the Caribbean Development Bank ects in progress are described in an annual for onlending to some of the smaller states. Such publication, World Bank Research Program: informal arrangements are examples of the Abstracts of Current Studies. The results of com- Bank's efforts in recent years to explore ways of pleted research projects appear in a variety of serving more effectively some of its smaller bor- formats, including articles in professional jour- rowers, and they represent a further step toward nals, books published under World Bank appropriate division of labor. auspices or by independent publishers, and On a regional basis, the Bank continued its World Bank Staff Working Papers. The Catalog active participation in the country reviews spon- of World Bank Publications provides detailed sored bv the Permanent Executive Committee of information on publications issued bv, or on the Inter-American Economic and Social Coun- behalf of, the Bank. cil. It also maintained close working relation- Research is undertaken by the Bank's own ships with regional development banks and with research staff, usually in collaboration with out- the Commission of the European Communities, side researchers. Except for such collaborative which helped assure the coordination of de- projects, the Bank does not provide funds to velopment-assistance activities. outside institutions or individuals for economic and social research. Economic Research and Studies During the past year, research activities have evolved further in pursuit of three objectives The World Bank devotes roughlv $12 million a recommended by the external advisory panel year, or 3 percent of its administrative budget, to that evaluated the research program in fiscal economic and social research. Since the formal 1979: more collaboration with institutions in inception of the research program ten years ago, developing countries; closer links with Bank about 110 research projects have been com- operations; and greater efforts to disseminate pleted, while about the same number are in and apply the results of research. As the exam- progress. Thirty new projects were started in ples presented here will show. these three objec- fiscal 1981. tives have often been mutually reinforcing. The program of research is shaped by the Collaborative Research. The Bank has been Bank's own needs as a lending institution and as financing collaborative research with nationals a source of policy advice to member govern- of developing countries for many years, but the ments and by the needs of member countries. Its proportion of collaborative projects has recently main purposes are to gain new insights into the increased. Of the research projects approved development process, to introduce new tech- sincethebeginningoffiscall980,forexample,60 niques or methodologies into country, sector, percent include collaborative arrangements, Economic Research and Studies 81 while only 46 percent of those approved between alternatives based on marginal-cost principles of fiscal 1975 and fiscal 1979 included such arrange- pricing were developed, and case studies to ments. Those recently approved include several demonstrate the practicability of the new meth- for which institutions in developing countries odology were conducted. As a consequence of have taken the initiative and are largely respon- this research and the vigorous dissemination of sible for design and execution, examples are a its results, marginal-cost pricing principles are studv of employment and sources of income at now routinely incorporated in power-tariff the household level in Peru, a study of the evolu- reforms conducted by client public utilities in tion of living standards of different socioeco- developing countries. nomic groups in Colombia. and a study of land A current example of applications at the coun- tenure in Indonesia. A separate allocation of try level is a study of trade policies and incentive funds from the Bank's research budget to policies, to be undertaken as part of current encourage this type of collaborative research is work on structural-adjustment lending to now being made. Turkey. The Bank's research on the structure and Links with Operations. Links between consequences of trade protection in developing research and operations of the Bank have been countries began in the late 1960s and has had a strengthened. This is partly through a natural powerful influence in favor of more open trade process whereby as the research program policies and industrial policies in developing matures, results are increasingly made available countries. This influence has been channeled in a for use in operations. In addition. more efforts variety of ways, including the assumption of are being made to disseminate the results of advisory functions bv researchers in member research to operating staff, and the latter are also developing countries, changes in the content and becoming more involved in identifying issues for rigor of analyses of trade incentives and policies, research, deciding on the content of the research and discussion in public documents, notably the program, and managing research projects. Six World Development Report. In some instances. sectoral Research Steering Groups are now at the findings of case studies undertaken in Bank work, defining research priorities, advising on research projects have influenced trade policies the design of new proposals, and evaluating com- and incentive policies directly; in others, region- pleted projects. The newest of these groups-on al offices of the Bank have mounted their own Population and Human Resources and on studies of the incentive framework to provide the Energy-were created in 1981. basis for discussions with governments. An increasing proportion of research projects Application and Dissemination of Research. is being initiated by regional offices. Some of The Research Committee of the Bank now these projects address quite narrowly defined makes a separate provision for funds to support problems encountered in operations; others are the application of research results, quite apart broader ranging and more speculative. Those from those applications that are made in the approved in the last year include research on the context of operations and are funded from the effects of Bank-assisted dairy projects for small- budgets of Bank operations. During fiscal 1981 scale producers on incomes, agricultural produc- the Research Committee approved several proj- tion, household consumption, and nutrition and ects in which analytical techniques developed in a case study of the efficacy of the training-and- previous research are being transferred for use visit system of agricultural extension-now in in other countries and are being developed use in member countries on all continents-in further in the process. These projects will yield promoting innovations and increasing produc- information useful for policy planning and are tivity and incomes. Other new studies sponsored also designed to enhance local capacity for by regional offices include a project to evaluate analytical work. In the first of these. a comput- traditional and new technologies for animal- able general equilibrium (CGE) model of the powered agriculture and the factors that encour- economy of Yugoslavia is being constructed for age or hamper their use and a study in Brazil to use in reviewing the 1981-85 plan and for subse- test the validitv of using the povertv line, or quent routine country analytical work bv Bank income threshhold, to distinguish the poor from staff. CGE modeling techniques are already well the nonpoor in the planning of urban projects. known in the research literature, though there Methods and findings derived from earlier are few instances of their application. Sponsor- research are being applied to an increasing ship by the Bank has been important in their degree in project operations and countrv development. A researcher in the Yugoslavia economic analysis of the Bank. An example of project is one of the principal authors of a similar research that has supported project and sector model of the Turkish economy now in use in the analvsis is the Bank's research on the pricing of Bank and being transferred to the Middle East and investment in electric power. In this research Technical University in Ankara. Two other new the existing practices of the Bank were assessed, projects in which research results are being 82 Bank Po cies and Activ ties, -Fiscal 1981 applied one in Cyprus and one in Egypt- experience sector by sector and, through a proc- make use of social-accounting techniques and ess of review with operating staff, bringing that associated models as tools for economic plan- experience to bear on the designing of future ning. Much of the literature on the application of projects. these techniques to policy analysis and planning The Bank's evaluation svstem remains com- is the result of research done at the Bank or prehensive; all completed projects are covered. sponsored by it. By the end of fiscal 1981 a total of 658 projects Efforts to make information on the Bank's had been reviewed: 94 were reviewed during the research program and its products more widely 1981 fiscal year. As reported earlier, the points of available are continuing. The thrice-yearly speciaL interest noted on each project perform- bulletin "World Bank Research News" is now in ance audit report are maintained in a com- its second year. It is distributed to all operations puterized memory-and-search system to facili- staff within the Bank and to more than 5,000 tate prompt access to these elements of the individuals in governments. research institu- project experience. An expansion of the system tions, and other international institutions. In fis- to include a wider range of project information is cal 1981 a large set of staff working papers was to be initiated in fiscal 1982. It will greatly issued in which up-to-date digests of research increase the range of easily accessible project results in a variety of fields were given, and a experience and will provide a means of making report was published on the scope of the more effective use of it. research program, its effectiveness, and the To supplement the performance audit report- issues being discussed for the future. ing system, OED has introduced a "second look" series to review the experience of selected Operations Evaluation projects some years after completion, when it is Operations Evaluation possible to make a better assessment of their During fiscal 1981 the World Bank's svstem for larger development effects. Several such reviews evaluating its operations continued to develop were completed during fiscal 1981, and more are along the lines set out in earlier annual reports. planned for the future. In particular, the objective of increasing the OED's "Sixth Annual Review of Project Per- involvement of borrowers in the postevaluation formance Audit Results," the fourth to be of their Bank--.ssisted projects has continued to distributed to the public, was published in be pursued. The high proportion noted last year November 1980. The Review dealt with the of project-performance audits that include the experience of 130 operations supported by Bank comments of borrowers has been maintained. loans and IDA credits. The total amount of Significant involvement of borrowers in the Bank finance in support of these projects was preparation of project-completion reports has approximately $2,800 million: the total cost of increased. The Bank has also continued to the projects assisted was approximately $10,200 encourage and support the establishment of bor- million. Like earlier reviews. the Sixth Review rowers' own evaluation capacities. Members of concluded that these projects were, with only borrowers' staffs have visited the Operations few exceptions, successful or on their way to Evaluation Department (OED), and sessions on being successful in achieving their main objec- evaluation have been incorporated into courses tives and that they had contributed substantially given by the Economic Development Institute to the development of both material and human (EDI). The first EDI course devoted exclusively resources in the countries concerned. to monitorina and evaluation was given in This particular review provided the first December 1980 with assistance from the OED opportunity to look at a significant number of staff. Efforts by operational staff to develop projects that originated in the early 1970s and more effective systems for the monitoring and reflected the Bank's growing concern with the evaluation by borrowers of urban and rural distribution of benefits to poorer sections of development projects were continued. society. The results reported were encouraging. One of the most important objectives of Bank The fairly large number of agricultural proj- evaluation is to identifv and disseminate lessons ects in this group that were intended to benefit that can contribute to improvements in the small farmers generally involved a greater-than- design and implementation of future Bank-sup- usual decentralization of effort and extensive ported projects. By bringing together expe- participation of individual farmers. Thev were rience with similar projects, lessons can be more implemented smoothly and on the whole readily drawn and more effectivelv confirmed quickly, economic returns were comparable to and disseminated. The Annual Review of Proj- those of other agricultural projects, and it is esti- ect Performance Audit Results was, as in the mated that a larger number of farmers benefited past. a valuable mechanism for summarizino than had been expected. Some 4.5 million rural Interna Audting 83 dwellers were estimated to have benefited from auditing and accounting education and practices the thirty-nine agricultural projects reviewed. in countries where they might be needed. The findings provide support for the Bank's pres- IAD's examination and evaluation of the ade- ent policy of concentrating its assistance on small quacy and effectiveness of the systems, pro- farmers. cedures, and internal controls used in the The Joint Audit Committee of the Executive conduct and management of an activity include Directors maintains continuing oversight of the review and determination of the reliabilitv and OED work prograrni and of its effectiveness. The integrity of significant financial and operating conclusions of the Joint Audit Committee, the data and the accounting and reporting of such report of the Director-General, Operations data; of the extent of compliance with various Evaluation, on the status of the Bank's evalua- governing agreements, instruments and related tion system, and OED's Annual Review of Proj- decisions, regulations, policies, plans, and pro- ect Performance Audit Results were all reviewed cedures of the Board of Governors, Executive by the Executive Directors. Directors, and Bank management; and of the means of safeguarding Bank assets from various types of losses and appraisal of the efficiency and Intemnal Auditing economy with which resources are used. The audits of project supervision and elec- The Internal Auditing Department (IAD) tronic data-processing systems (EDP) form an performs an independent appraisal function important part of the Department's work pro- within the World Bank by examining and gram. Project-supervision activities are selected evaluating the Bank's activities, with particular for audit on a sector/region basis and are emphasis on the maintenance of an effective reviewed in the light of existing policies and system of internal control, the quality of per- guidelines established by the Bank. The EDP formance in carrying out assigned respon- system audits include the review of controls, sibilities. and the adequacy of related systems security, and efficiency of computerfacilities and and procedures used in the conduct and manage- information systems in operation and those ment of Bank operations. The Department's under development. overall objective is to assist department direc- IAD has no direct responsibility for develop- tors and managers at other levels in the effective ing and implementing changes in svstems, pro- discharge of their responsibilities by furnishing cedures, and internal controls that it would be them with periodic independent audits and expected to review in a subsequent audit. appraisals of activities within their areas of In carrying out each assignment, the Director responsibility and by identifying possible means and staff of the Department have unrestricted of improving the efficiency and economy of access to all Bank records, documents, and per- operations and the use of resources. sonnel relevant to the activity under review. The work program designed to achieve these Where relevant, the IAD coordinates its work objectives covers a broad range of activities- with the Bank's external auditors and makes its financial, accounting, administrative, and data working papers and reports available to assist processing-and the supervisory aspects of them in planning and conducting their examina- Bank loans under disbursement. Some of these tions of the annual financial statements of the activities are reviewed annually, others bien- Bank. nially or less frequently, depending upon the The IAD reports to the Senior Vice President, materiality, volatility, or risk aspects of the Finance, but in order to enhance its indepen- activity. IAD is also requested by the manage- dence, the Director also has direct access to the ment of the Bank to undertake special assign- President and to the Joint Audit Committee of ments from time to time. the Executive Directors. The results of each In addition, the review work of the IAD has audit undertaken are reported to the depart- included visits to selected countries to review the ment directors, vice presidents. and others con- auditing standards applied by borrowers' exter- cerned as it is considered appropriate. Liaison is nal auditors, to review internal auditing and maintained with the Joint Audit Committee, financial reporting standards of selected bor- which also reviews selected reports of the IAD, rowers, and to recommend appropriate techni- reviews the Department's annual work program, cal-assistance programs to upgrade national and receives periodic briefings on its activities. 84 Chapter Five Borrowings and Finance Income, Expenditures, banks and financial institutions. In fiscal 1981, and Reserves: Bank they yielded an average realized rate of return of The gross revenues of the Bank. which are 9.3 percent and generated $813 million of invest- generated primarilv from its loans and invest- ment income. This compared with an 8.8 percent ments, reached a total of $2,999 million in fiscal rate of return in fiscal 1980. Additional revenues 1981, up $199 million, or 7.1 percent, from the of $22 million were derived from other income. preceding year. Gross revenues have risen Total expenditures of the Bank, which include steadily during the past decade as loan and administrative expenses, interest, and the costs investment balances have continued to expand. of issuance of borrowings, were S2,389 million, The total of the outstanding loan portfolio up 8.0 percent from fiscal 1980; the increase dur- stood at $25,958 million at the end of the fiscal ing fiscal 1980 had been 10 percent. Costs associ- year. The average rate of return on outstanding ated with the increased borrowings of the loans, together with commitment charges on Bank-interest of $2.104 million, bond-issuance undisbursed loan balances, vielded 8.1 percent charges, and other financial expenses of $30 on the loan portfolio, producing income of million-were by far the largest expenditures. S2,164 million. The rate in fiscal 1980 was 8.0 Total administrative costs were $255 million, up percent and the income was $1,945 million. $57 million, after deducting $180 million for the The Executive Directors have approved a management fee charged to the International policy, put into effect in Januarv 1980, according Development Association and $2.9 million for to which the lending rate would be determined the service-and-support fee charged to the Inter- on the basis of a general guideline rather than of national Finance Corporation. the strict formula that had been in effect since In fiscal 1981 the net income of the Bank was July 1976. The guideline provides for a spread of $610 million, an increase of 3.7 percent over the 0.5 percent above the cost of borrowing, which is $588 million earned the preceding vear. estimated for a twelve-month period, using the Of the net income of $588 million earned in actual cost of borrowing for the preceding six fiscal 1980, $118 million was allocated by the months and the estimated costs for the succeed- Board of Governors as a grant to IDA; the ing six months. According to this policy, the remaining $470 million was allocated to the lending rate is reviewed at least once a year, General Reserve. normallv at the middle of the fiscal year, and The Bank does not trade in the currencies of more often, if necessary. It rose from 9.25 per- its member countries for its own account. cent during the first half of fiscal 1981 to 9.60 Adjustments arising from translation of curren- percent on loans submitted to the Executive cies to U.S. dollar equivalents do not bring Directors after January 12, 1981. realized gains or losses as would actual conver- It is the aim of the Bank to maintain a liquid sions into U.S. dollars. The General Reserve, position in marketable short-term assets equal therefore, rather than net income, is charged or to 40 percent of estimated net cash requirements credited annually with the amount of adjustment for the subsequent three years. This liquidity made necessary by currency depreciations or policy is designed to permit the Bank to meet its appreciations. In fiscal 1981 the result of that net cash requirements adequately without bor- translation of currencies into U.S. dollar rowing new funds for prolonged periods, thus equivalents was a debit to the General Reserve making it independent of temporary adverse of $582 million; in fiscal 198(0 there had been a conditions in the capital markets. On June 30, credit of $104 million. (A more detailed explana- 198i, the Bank's liquid position stood at 40.3 tion is provided in Bank Appendices: Appendix percent of estimated cash requirements for the G-Notes to Financial Statements.) next three years. When gold was abolished in 1978 as a common At June 3(), 1981. aggregate liquid assets were denominator of the monetary system, the Bank $8,371 million net of commitments for settle- began expressing its capital stock, for purposes ments. These assets are fulls invested, liquid, of its financial statements. on the basis of the and marketable: they are limited to obligations special drawing right (SDR). As a result, the of governments and of certain United States I percent paid-in portion and the 9 percent por- government instrumentalities and to time tion of the capital stock released by certain mem- deposits and other unconditional obligations of ber countries for lending in U.S. dollars are Borrowings: Bank 85 revalued at the rate of exchange of the U.S. dollar to the SDR. The adjustment made neces- World Bank: Gross Borrowings, 1972-81 sary bv this revaluation is also charged against or (LS$ mr ons. hsca 5ears credited to the General Reserve. In fiscal 1981, the result of these adjustments was a credit of S79 million to the General Reserve; in fiscal 1980 5 there had been a debit of $16 million. 5 69 5,08/ Other Financial Operations: Bank As of June 30, 1981, the Bank held loans valued at $54,090 million. This amount included $6,552 million in loans approved but not yet effective and $528 million in loans to the Interna- 4,721 tional Finance Corporation (IFC). The total of loans disbursed and outstanding was $25,958 million, including $474 million to the IFC. Total disbursements on loans to countries amounted to $5,063 million in fiscal 1981, up $700 million from last year. Since the Bank began operations, it has disbursed a total of $38,064 million to its borrowing member coun- tries. Repayments of principal on the Bank's loans, based on exchange rates at the time of disburse- ment, amounted to $1,419 million in fiscal 1981. This included $147 million to investors who had purchased portions of loans. Cumulative loan repavments as of June 30, 1981. were $12,466 million-S9,571 million to the Bank and $2,895 million to purchasers of loans. Borrowings: Bank The World Bank's borrowings in international 2,528 capital markets constitute the principal source of funds for financing its lending operations. The borrowings are supplemented by the other prin- cipal financial resources of the Bank, which are its paid-in capital, accumulated earnings, and loan repayments. The Bank borrowed the equivalent of $5,068.8 million in fiscal 1981. This does not include $646 million that was borrowed at the end of fiscal 1980 and credited in advance to the borrowing program for fiscal 1981. This amount was included in the 1980 Annual Report. The advance borrowings for fiscal 1981 included two issues, totaling S500 million, of Eurodollar notes, mark- ing the first borrowing by the World Bank in the Eurodollar bond market, a public issue in the amount of SwF 100 million, equivalent to $61.3 million, and a private placement in the amount of DM 150 million, equivalent to $84.8 million. During fiscal 1981, the Bank also considered bor- rowing operations that were subsequently postponed because of volatile market condi- tions. The World Bank sells its securities in two categories of market: First, it places bonds and notes directly with its member governments, 86 Borrowirgs and F nonce govcrnmcnt acencies. and central banks. Outstanding Obligations of the tiank Second. it offers issues to investors and in the (As of Jlune 30),1981 ) public markets through investment-banking Princip.l Percutagc of firms, melchant banks, and cornmercial banks. ,mosio total outstanding Of the fortv-four borrowing operations that the Country (Uss mrlilJos) aimotint Bank conductod during tiscal 1981. twentv-eighlt Germanr $ 6.473.9 23.3 were public issues or private placements United States 4.77.'.7 17.2 throughout the world and accounted for Japan 4,5"S.() 16.3 S3.32.06 millioni. or 66 percent of total funds Switzerland 4.155.3 14.9 borrowed. The other sixteen issues, totaling OPEC 4(14).9 14.9 S1729.1 million, or 34 percent of the funds Other 3.718;.( 13.4 raised, were placed with official sources- Total $27,797.8 1()().() namely, member governments of the World Bank. central banks, and government institu- tions. The basic borrowing policy of the Bank is to divcrsifv the markets for its oblioations in order g to avoid undLIe dependence on one particular The total cost of all borrowings by the Bank in markct. Its securitics have been placed with the fiscal year, weighted bv amount and maturity, invcstors in more than a hundred countries in averaged 9.1 percent the corresponding percen- Africa, Asia, Australia. Europe. the Middle tage in the preceding year had been 8.1. The cost East. and North and South America. The Bank in fiscal 1981, weighted by amount only, was 9.6 is the largest nonresident borrower in virtually percent, compared to 8.2 percent in fiscal 1980. all countries in which its issues are held. The average cost of all funds to the Bank, includ- The S5,(068.8 million borrowed bv the Bank in ing paid-in capital and accumulated earnings, fiscal 1981 consisted of the following currencies was about 6.1 percent. The cost of the Bank's and included the Bank's first public borrowing in average outstanding borrowings was 7.4 per- sterlino since 1971, and the first public borrowing cent. in guilders since 1976. The cost of the Bank's average outstanding borrowings for each of the past six fiscal years is here summarized: Bank Borrowings in Fiscal 1981 (As of Juric 3'. I')1S ) C(urrency US dollar Cost of the Bank's Average Outstanding Borrowings Currencv amounl equivalcnt Ascrgec borrowved (millions) (millions) principal outstasidille Cost Deutsche mark DM 2.601 .8 $1,437.0 Fiscal scar (SS5 millions) (percentage) Swiss francs SwF 1,731.8 962.5 1976 $13,482 7.32 Japanese yen Y 234,000.0 1,(090.6 1977 16,809 7.53 Netherlands guilders f. 600.0 251.9 1978 2(0.948 7.45 Pounds sterling £ 1(0.( 215.8 1979 25,6()( 7.21 US dollars S 1,111.0 1,111.0 198(1 27,644 7.28 1981 28,81(0 7.41 Of these borrowings, S3.860.5 million repre- sented new funds and $1,208.3 million repre- Capitalization sented refinancing of outstanding borrowings. The capital stock of the Bank and the sub- A total of $2,722.0 million equivalent of bor- scriptions of its members to it are expressed, rowings was retired during the year, including underthe ArticlesofAgreement, in U.S. dollars both debt maturities and sinking-fund and of the weight and fineness in effect on July 1,1944 purchase-fund operations. (1944 dollars). Until 1971, the current U.S. dollar At June 3(1. 1981, outstanding obligations of had the same value as the 1944 dollar and the the Bank amounted to $27,797.8 million. These SDR, which was instituted in 1969. In 1972, the obligations were denominated in 17 different current dollar value of the 1944 dollar and the currencies and were placed with investors, SDR increased to S1.08571. and in 1973 to including central banks and government institu- S1.20635, as the result of devaluations of the tions, in more than a hundred countries. A sum- dollar. Until mid 1974, both the 1944 dollar and mary classification of outstanding borrowings by the SDR continued to be valued in gold and had principal source at June 30, 1981, is as follows: the same gold value. Thus on July 1, 1974, the Wor d Bank Borrowings, Fisca Year 1981 87 World Bank Borrowings, Fiscal Year 1981 (In millons.) (urrecris of US dollar Issue issue equivalents Public Offerings Germany 8'% ten-year bonds, due 1990 DM 71(0.i) $ 398. 1 9.25%./s ten-vear bonds. due 1991 DM 251).() 128.7 10% ten-year bonds, due 1991 DM 1511.11 68.7 Japan 8.601% liftcen-scar bonds, due 1995 Y 30,0()0(.0 138.6 820% fifteen-vear bonds, duc 1996 Y 3.00(.()0.0 142.2 Netherlands 11.25% ten-vear bonds, due 1987/91 i'. 2()0.1) 84.9 Switzerland 6%.''( ten-vear bonds. due 1991) SwF 10().() 61.1) 6C% ten-vwar bonds, due 1991 SwF 1()().() 54.9 7% nine-year bonds, duc 19911 SwF 1()().() 52.3 7.375% ten-year bonds, due 1991 SwF 1()1).() 49.2 United Kingdom 13.511% fivc-year stock. due 1986 £ 1()().() 215.8 Eurobond Market 14.375%s five-vear notes, due 19S6 S 5()(1.(1 50().0 8.75% ten-year bonds, due 1991 Y 201.10)0.10 98.(1 12%xi five-year notes, due 1986 f. 1()().() 41.1 Total Publie Offerings 52.033.5 Placements with Central Banks and Governments Germany 8.30c/e notes, due 1985 DM 151.8 5 87.4 9.80%) notes, due 1986 DM 250.1) 129.5 Japan 8.50% yen obligations, due 1987 V 34,()()0.0) 163.9 8.14% yen obligations, due 1987 Y 30,00)0.0 139.1 Other 7.75% seven-year notes, due 1987 DM 11)0.0 56.8 7% five-year notes, due 1986 SwF 2(0(0.0) 1(0(0.7 7.125% ten-year notes, due 1991 SwF 100.11 48.9 8% five-year notes. due 1986 SwF 45.1) 22.0 8°k five-vear notes, due 1986 SwF 35.1) 17.2 11.50%lc five-year bonds. due 1986 f. 20(0.0 83.9 11.50% five-year notes, due 1986 f. 1()(.( 42.0 8.50%.c five-vear bonds. due 1986 Y L(1,1)(10.0 44.5 International' 10.17% two-year bonds, due 1982 $ 299.0 299.( 14% two-year bonds, due 1983 $ 294.9 294.9 5.875% four-vear notes. due 1984 SwF 200().0 122.9 6.875% three-year notes, due 1984 SwF 151.8 76.4 Total Placements with Central Banks and Governments $1,729.1 Other Germany 8.125% loan, due 1990 DM 140.1) $ 8(.1 8.125% loan, due 1995 DM 11.0( 5.7 7.75% notes, due 1988 DM 200.0 114.2 8.10% loan, due 1992 DM 200.0 113.5 8.10% loan, due 1992 DM 200.0) 113.5 8% notes, due 1990 DM 150.0 84.5 8.25% loan, due 1986/90 DM 100.0 56.3 Japan 8.90% loan. due 1995/2(0()0 Y 40,000.0 183.6 8.90% loan, due 1996/20(01 Y 2(0,0()0.0 91.8 8.90% loan, due 1994/2001 Y 10.(00.0 44.5 8.70% loan, due 1991/1996 y 1(,1()().( 44.4 Switzerland 5.875°.'c notes, due 1987 SwF 15().() 94.5 6% loan, due 1986 SwF 200.0 120.7 6% notes, due 1985 SwF 2()0.0 115.6 7.25% notes, due 1986 SwF 5().() 26.2 Total of Other Placements $1,289.1 Add: Interest Subsidy Fund 8.50% loan, due 1977/2001 17.1 Total Borrowings, Fiscal 1981 $5,068.8 -Based on official rates at the time of borrowing. 1Thiese short-term bond issues were placed with central banks, government agencies, and with international organizations. 88 Borrowings and Finance value of the SDR. expressed in U .S. dollars, was imately $40,00( million. The r esolution provides S1.20635, which was the equivalent of one 1944 that the paid-in portion of the shares authorized dollar. to be subscribed under it will he 7.5 percent; the Since July 1. 1974, when a method of valuing paid-in portion of existing capital stock is 10 per- the SDR that was based on a number of major cent. Subscribing members will be required to currencies was adopted. the value of the SDR pay 0.75 percent of the subscription price in gold has fluctuated daily. The current-dollar value of or U.S. dollars and 6.75 percent in their respec- the 1944 dollar, on the other hand. was deemed tive currencies. The Governors also adopted a to remain fixed at the rate established by the resolution that increases the authorized capital U.S. par value legislation of 1973. stock by an additional 33,500 shares-represent- Since April 1, 1978, when the Second Amend- ing a further increase of approximatelv $4,000 ment to the Articles of Agreement of the Inter- million-and that authorizes each member to national Monetary Fund (IMF) took effect, subscribe to 250 shares of this additional capital, currencies no longer have par values, and the none of which will be paid in. Subscriptions basis for translating the 1944 dollar into current authorized by these resolutions will be accepted U.S. dollars no longer exists. after September 30, 1981. For purposes of the financial statements, the Bank has expressed the value of its capital stock Finances: IDA on the basis of the SDR in U.S. dollars as com- puted bv the IMF on June 30, 1981 ($1.15060 per The International Development Association SDR). (IDA) held a total of S23,842 million in credits The subscribed capital of the Bank was on June 30, 1981, including $2,226 million increased by SDR 1.650.3 million in fiscal 1981. approved but not yet effective. Of the $21,616 bringing the total of subscribed capital to SDR million of effective credits. S8,740 million was 31,822.1 million as of June 30, 1981. The undisbursed at the end of the vear. increases in subscriptions during the vear came Total disbursements in fiscal 1981 were $1,878 from the following countries: million; the fiscal 1980 totai was S1.411 million. As of June 30, 1981, cumulative disbursements by IDA were $13,076 million. The total Increases in Subscriptions to the Bank's resources provided to IDA increased S1,684 Subscribed Capital million during the period, primarily from Barbados 2.8 million SDR advance contributions to the Sixth Replenish- Bolivia 5.4 million SDR ment, which totaled $2,187 million equivalent as Brazil 166.8 million SDR of June 30,1981. The value of resources provided China 450.0 million .SDR by members in earlier fiscal years decreased by Djibouti 3.1 million SDR S981 million, mostly as a result of currency Dominica 1.6 million SDR depreciations. The World Bank granted $118 Finland 17.3 million SDR million to IDA from its fiscal 1980 net income, of Guatemala 4.4 million SDR which $98 million was for the general purposes of Italv 159.5 million SDR the Association and $20 million was for grants by Kuwait 250.9 million SDR IDA for agricultural research and control of Malavsia 47.9 million SDR onchocerciasis and other tropical diseases. Mauritius 3.3 million SDR The total of other resources that became Morocco 26.0 million SDR available to IDA during the fiscal year was $92 New Zealand 4.0 million SDR million; these were derived from releases by Part Paraguay 1.0 million SDR II countries and cancellations of and repayments Peru 20.3 million SDR on credits. For further information, see 'IDA Seychelles 1.1 million SDR Appendices: Financial Statements." Spain 118.0 million SDR Sri Lanka 13.4 million SDR Foreign and International Bonds: Lnited States 271.8 million SDR Calendar 1980 Zimbabwe 81.7 million SDR alendar 1980 Fluctuating interest rates in the United States Total 1,650.3 million SDR and in the Eurodollar markct and associated movements in exchange ratcs were the main causes of the unstable conditions that prevailed On Januarv 4. 1980, the Board of Governors of in the bond markets durin- i980. the Bank adopted a resolution that increases the Total borrowing in the forcign and interna- authorized capital stock of the Bank by 331,500 tional bond markets durinn 198(0 was $38,259 shares: this represents an increase of approx- million, somewhat higther than the $37,764 Foreign and International Bonds: Calendar 1980 89 Borrowing in International Capital Markets (US$ millions. Calendar vears.) 1979 198(1 1981,(P) Foreign Foreign Foreign and inter- Euro- and inter- Earo- and inter- Euro- national cairrencv national currencv national currency bonds crcdits Total bonds credits Total bonds credits Total Industrialized countries 24,554.2 19,041.8 43,596.0 26.269.4 29,867.8 56.137.2 14,134.0) 12,458.4 26.592.4 Developing countries 4,014.5 46,255.2 50,269.7 2,867.5 37,673.0 411,540.5 1,579.3 19,181.0 20,760.3 Oil-exporting' (14.7) (811.0) (825.7) (-) (407.7) (407.7) (-) (149.6) (149.6) Middle-income (3,929.1) (41,095.4) (45,024.5) (2,791.7) (35,414.0) (38,2115.7) (1.532.8) (17.436.9) (18,969.7) Loss-income (711.7) (4.348.8) (4.419.5) (75.8) (1,851.3) (1,927.1) (46.5) (1,594.5) (1.641.0) Other developing (-1 (-) (-) (-1 (-) (-1 (-1 (-) (- Centrally planned countries and organizations 48.1 4,456.2 4.504.3 50.0 2,097 2 2,147.2 - 1,135.0 1,135.01 International organizations 8.670.4 310.0 8,980.4 8.876.8 530.4 9,407.2 3.687.9 - 3,687.9 Others 477.3 186.2 663.5 195.4 218.0 413.4 157.4 - 157.4 Total 37,764.5 70,249.4 108,013.9 38,259.1 70,386.4 108,645.5 19,558.6 32,774.4 52,333.0 First six months onlv. Oil-exporting countries include the following capital-surplus countries: Kunait, Libva, Oman, Qatar. Saudi Arabia, and the United Arab Emirates. P Preltmiisary. million raised in 1979.' Borrowing in the foreign tial offering yield for public offerings by bond markets declined from $19,965 million in industrial countries was 12.8 percent. 1979 to $15,753 million in 1980 because of a decrease in activity in the Swiss and Japanese The Swiss Market. Foreign bonds issued in the capital markets. International bonds, on the Swiss capital market totaled $7,441 million. 22 other hand, increased during the same period percent less than the $9,517 million borrowed from $ 17,799 million in 1979 to $22,506 million in during 1979. About three fourths of total issues 1980, primarily because of an increase in the in the Swiss market, $5,526 million, were raised dollar-denominated sector of the market. by industrial countries. Japanese borrowers, who raised $1,935 million, were the most active. Foreign Bonds. The total of foreign bonds About three fourths of all issues by Japanese issued during 1980 was $15,753 million, 21 per- borrowers were private placements. Large cent less than the $19,965 million raised in 1979. amounts were also raised by borrowers from Total public offerings were $9,011 million and Austria ($884 million), Sweden (S493 million), private placements were $6,742 million. About Norway ($359 million), and France ($334 55 percent of all foreign bonds, $8,700 million, million). Developing countries raised $517 were issued by industrial countries, while million, of which $218 million was secured by developing countries raised $1,205 million (8 Spain, $156 million by South Africa, $50 million percent), international organizations $5,797 by Argentina. $23 million by Morocco, and $12 million (37 percent), and borrowers unallocated million each by Costa Rica and Yugoslavia. by country, $51 million (less than 1 percent). International organizations borrowed $1,344 million, of which $725 million was raised by the 7he U.S. Market. The total of foreign bonds World Bank and S259 million by the European issued in the United States was $2,637 million. Investment Bank. The average initial offering About two thirds of total borrowing in the yield on public offerings was 5.68 percent for United States market, $1,705 million, was com- industrial countries. pleted bv industrial countries. Canadian bor- rowers raised S1,220 million, while Swedish The Japanese Market. A total of $1,616 million borrowers raised $485 million. Developing was raised in the Japanese capital markets during countries raised $382 million, of which $326 1980; the figure in 1979 was $3,055 million. The million was secured by Israel and S56 million by twelve issues completed were raised by the Mexico. The European Investment Bank and the Inter-American Development Bank were the only two international organizations to bor- row in the U.S. market; they raised $450 million I The termsforeign and international in this contest refer to issues sold outside the countr i of the borroiwer-foreign if sold in one and $100 million, respectively. The average ini- national mnarket, international if sold in more than one. 90 Borrow[ngs and Finance World Bank ($708 million), Sweden ($119 raised in 1979 had been $2,831 million. The most million), France ($96 million), the Asian active borrowers were the World Bank ($1,493 Development Bank ($95 million), Brazil ($92 million), the European Investment Bank ($736 million), Argentina ($89 million), Canada ($84 million), and the European Coal and Steel Com- million), Finland ($82 million), the European munity ($532 million); other borrowers included Investment Bank ($70 million). Ireland ($70 the European Economic Community ($191 million), Spain ($66 million), and Thailand ($46 million), the Asian Development Bank (S107 million). million), and the Nordic Investment Bank ($20 million). The Germnan Market. The total of foreign The Nordic Investment Bank brought into bonds issued in the German capital markets dur- being the Eurokrone bond market when it ing 1980 was S3.496 million, up from $1,834 launched an international bond issue of NKr 80 million in 1979. The principal borrowers were million in January 1980. A further issue for the World Bank (S1,756 million), the European NKr 20 million was made in February 1980. Investment Bank ($742 million), Australia ($221 The volume of international bonds denomi- million), Sweden (S164 million), and the Euro- nated in United States dollars increased from pean Coal and Steel Community ($162 million). $10,615 million in 1979 to $13,664 million in 1980. Early in November, in a move to stem the capi- Because of high short-term interest rates in the tal-account outflow that accompanied the coun- United States at the beginning and end of the try's growing deficit in current accounts, German vear, however, there was a noticeable decrease in banks agreed to hold back temporarily on their new straight Eurodollar bond offerings during long-term lending to foreign borrowers. This these periods. Around the middle of the year, agreement supplemented the moratorium on nevertheless, there was a swift recovery in this new foreign bond issues in deutsche mark, after market. The change in sentiment was brought a rapid deterioration in the market caused by the about as short-term interest rates declined from rise in U.S. interest rates and the weakness of the their previous high of 20 percent to the 13 per- mark. cent to 14 percent range. There was a boom in new issues in floating-rate notes in 1980. This was Other National Markets. During 1980 foreign the result of the disarrav in the fixed-rate dollar bonds were also issued in the capital markets of markets and a general reluctance to enter into the United Kingdom (S178 million), Luxem- long-term contracts with uncertainty attribut- bourg ($159 million), France ($94 million), able to the persistent high rate of inflation. The Austria ($81 million), and the Netherlands (831 total of floating-rate notes issued by industrial million). countries was $3,370 million. Spreads for these Original maturities of foreign bonds were con- countries ranged from the average of the three- centrated in the over seven- to ten-year range month London bid-and-offered rates to 0.25 per- ($6,200 million), the three- to five-year range cent higher than the London Interbank Offered ($3,282 million), and the five- to seven-year Rate (LIBOR) and original maturities from two range ($3,004 million), to fifteen years. The total of floating-rate notes issued by developing countries was $807 million. Spreads were from 0.25 percent to 0.875 percent International Bonds. The total of interna- higher than LIBOR and original maturities were tional bonds issued during 1980 was $22,506 from five to ten years. The average initial offer- million, 26 percent more than the $17,799 ing yield on straight dollar-denominated public million raised in 1979. offerings by industrial countries during 1980 was Seventy-eight percent of all international 11.50 percent. bonds ($17,570 million) were issued bv industrial During 1980, the total of international bonds countries. The largest amounts were raised by denominated in deutsche mark was $4,254 borrowers from the United States ($4,307 million, 9 percent less than the $4,654 million million), France ($1,933 million), Japan ($1,746 issued in 1979. The largest amounts were raised million), and Canada ($1,380 million). by borrowers from Austria ($710 million), Japan Total borrowing by developing countries dur- ($538 million), and Sweden (S434 million). The ing 1980 amounted to $1,662 million, 17 percent average initial offering yield on public offerings less than the S1,989 million raised in 1979. Eigh- denominated in deutsche mark by industrial teen developing countries raised funds during countries was 8.07 percent. the year; the largest amounts were obtained by Other currencies used in the international borrowers from Mexico ($265 million), Brazil market during 1980 were the Australian dollar (S224 million), and South Africa ($215 million). ($50 million), the Austrian schilling (8235 A total of S3,080 million was raised by six million), the Canadian dollar ($270 million), the international organizations in 1980; the amount French franc ($968 million), the Japanese yen Syndicated Eurocurrency Calendar 1980 91 ($416 million), the Kuwaiti dinar ($26 million), The distribution of Eurocredits between pri- the Luxembourg franc ($61 million), the Nether- vate and public sectors within industrial and lands guilder ($1,038 million), the Norwegian developing countries showed a oreater con- krone (S100 million), the British pound sterling centration in the public sector, albeit in varying ($1,089 million), the Swiss franc ($236 million), proportions-60 percent in developing countries the European unit of account ($80 million), and and 55 percent in industrial countries. The pri- the special drawing right ($20 million). vate nonfinancial institutions accounted for 45 Original maturities of international bonds in percent of total credits in industrial countries 1980 were concentrated in the seven- to ten-year and 21 percent in developing countries. range ($6,500 million) and in the five- to seven- The economic situation during 198(0 was year range ($5,650 million). marked by growing severity of the problems faced by developing countries, principally those that are not exporters of oil. As interest rates Syndicated Eurocurrency Credits: climbed, debt-service obligations also increased, Calendar 1980 compounding the balance-of-pavments Publicized Eurocurrency credits amounted to difficulties caused bv high energy-import bills $70,386 million in 1980, a marginal increase from and reduced exports to industrial countries, the $70,249 million raised in 1979. whose own economies were beset bv recession Although developing countries accounted for and wide balance-of-payments deficits. 54 percent of the total, borrowing bv these coun- This situation was also of significant concern tries dropped 19 percent from last year's level. to bankers, whose lending behavior depicted the The share of the industrial countries increased so-called flight into quality. The preference for from 27 percent in 1979 to 42 percent in 1980, and lending to the more creditworthy borrowers these countries raised 57 percent ($10,826 brought into being a two-tiered market struc- million) more during the vear. Countries with ture, in which there was a borrowers' market for centrally planned economies reduced their bor- prime debtors, most of them industrial coun- rowing 53 percent. tries, and a lenders' market for less creditworthy Despite the increased requirements of the debtors. most of them developing countries that developing countries for external funding during do not export oil. Accordingly, two divergent the year because of larger interest payments and sets of spreads were applied. deteriorating current accounts, the decline in The conditions upon which developing coun- their borrowing in the medium-term Eurocredit tries could borrow deteriorated as the year market indicates the possibility that alternative progressed. Although average spreads increased sources of financing were used. These include only slightly throughout the first three quar- privately arranged bank loans, short-term bor- ters-from 0.79 percent during the first quar- rowing, drawdown of international reserves, and ter-the average jumped to 1.04 percent in the previously arranged lines of credit. Among the final quarter. Average maturities shortened from deterrents to a high level of financing through 9.4 years during the first quarter to 8.1 years the Eurocredit market were higher interest during the final quarter. rates, especially with the U.S. prime rate rising For industrial countries average spreads did to a peak of 21.5 percent, and generally stricter not vary substantially throughout the year; the conditions imposed upon most lending to increase was from 0.56 percent during the first developing countries that are not exporters of quarter to 0.57 percent during the final quarter. oil. Average maturities declined from 8.6 vears dur- Countries with centrally planned economies ing the first quarter to 7.6 years in the fourth faced not only economic problems but also quarter. political conditions that intensified the wariness Although the LIBOR has predominated as of international bankers in lending to them. the base upon which a spread is added to deter- Activity among borrowers in the Eurocur- mine the interest on syndicated Eurocurrency rency credit market was concentrated to a signifi- credits, the U.S. prime rate has had a growing cant degree among a relatively small group of influence on the pricing of Eurocredits. active participants. The ten largest borrowers,2 for example, accounted for 57 percent of all the Eurocredits arranged during the year. The ten most active borrowers among the industrial countries' accounted for 91 percent of the United States, Italv, Mexico, Brazil. Spain. Canada. Venezuela. $29,868 million raised by these countries. Of the Belgium, Argentina, and France. $37,673 million raised by developing countries, 3 United States. Italy, Canada, Belgium, France. Australia, Den- mark, Sweden. Finland, and United Kingdom. 69 percent was accounted for by the ten largest Mexico. Brazil. Spain, Venezuela, Argentina, Korea. borrowers.4 Yugoslavia, Greece, the Philippines. and Indonesia. 92 Borrow ngs and Finance Unlike banks that must raise funds in the Syndicated Eurocurrencv Credits: Eurodollar market. banks that have deposit First Half, 1981 bases in the United States have access to funds at A total of $32,774 million was raised in the a considerably lower cost. It is thus possible that Eurocurrency credit market during the first six the U.S. prime rate could provide a comfortable months of 1981. Industrialized countries profit margin to these banks. While loans based accounted for $12,458 million, developing coun- on the U.S. prime rate might offer an economic tries $19,181 million, and centrally planned advantage to some bankers, borrowers who economies $1,135 million. The aggregate level of chose this rate over LIBOR might find that they borrowing during the first six months increased were payinginterest at a higher rate, evenit they by 13.2 percent over the comparable period in received the usual reduction of 0.125 percent in 1980. Industrialized and developing countries spread from the U.S. prime rate. Historically the increased their borrowing bv 19.9 percent and U.S. prime rate has often been higher than . U.S. prme rat has ofen bee hgetan 15.1 percent, respectively, while centrally plan- LIBOR; consequently the reduction in spread ned economies decreased their borrowing by on the prime-based loan is in fact merely cosmet- 10.4 percent. ic. Actual costs of a prime-based loan could be The most active borrowers among the higher, especially when the differential between most countries ance LIBOR and the U.S. prime rate widens. At one industrialzed countries (Italy, France, point in December. for example, when the U.S. Australia, Sweden, and the United States) and prime rate stood between 20 and 21.5 percent thedevelopingcountries(Spain.Mexico,Brazil, the six-month LIBOR was 17.25 percent. Argentina, and Nigeria) each raised more than During the second half of 1980 several $1,000 million and accounted for 56 percent of L_ ~~~~~~~~~~the total raised. "jumbo" loans were arranged. Among them was Final ised. the $3,000 million credit package for Joseph E. dFuiancing fi the Eurocurrency credit markets Seagram and Sons, Inc., which consisted of a during the first half of 1981 was characterized by limited recourse facility of $1,625 million and a eclining spreads for several developing coun- revolving credit of $1,380 million. Both tranches tries, the introduction of SDR-denominated syn- carried a spread of 0.5 percent, with maturities dicated credits, the continued presence of the carie a prad f .5 erent wthmaturities LIBOR/U.S. prime rate loan-pricing option, ranging from five and a half years to nine vears. The proceeds were to be used to finance the and the completon of several ;jumbo" loans. firm's takeover plans. The Province of Quebec During the first and second quarters of 1981, also signed a credit of $1,000 million, with an spreads on developing countries' Eurocredits 0.375 percent to 0.5 percent split spread over ten averaged 0.72 percent and 1.09 percent, respec- years. One of the largest loans arranged for a tively. Actual spreads varied widely among the developing country was the $1,800 million developing-country borrowers. Atone extreme, Eurocredit to the Republic of Venezuela. The Brazilian private banks' external financing proceeds were intended for consolidation of (Resolution 63 loans) carried margins of 2.25 short-term debt. The loan carried a seven-year percent over LIBOR. At the other, some Asian maturitv and a split margin of 0.625 percent and borrowers obtained significantly finer terms on 0.75 percent. their loans. India's National Aluminum Com- Zimbabwe initiated its entry into the Eurocur- pany's $680 million, ten-year credit at an 0.5 rency credit market with an $11 million credit for percent-0.625 percent split spread over LIBOR the Air Zimbabwe Corporation and a $17.6 was followed by the Oil and Natural Gas Com- million loan for the National Railwavs Corpora- mission's $200 million, seven-year credit that car- tion of Zimbabwe. Both loans carried five-year ried an 0.375 percent-0.5 percent split margin maturities and split margins of 1.125 percent and over LIBOR. Other borrowers in the region that 1.25 percent and the guarantee of the Republic. were able to obtain similar spreads included the The Eurocurrencv credit market seems likelv Federation of Malaysia ($300 million, ten years, to remain an important, although relatively cost- 0.375 percent-0.5 percent split margin), Bank ly, source of financing for developing countries. Indonesia ($400 million, ten years, 0.5 per- Many countries will need to reduce their depen- cent-0.625 percent split spread), and the dence on energv imports and improve economic Kingdom of Thailand ($55 million, eight years, growth in addition to meeting their high debt- 0.5 percent-0.625 percent split margin). Coun- service obligations and bolstering their reserve tries outside Asia. such as Greece and Portugal, positions. Achievement of these ends will also saw an improvement of credit conditions on require development financing that will generate their Eurocredits. export earnings and improve domestic produc- These fine terms are similar to those obtained tion of energy, which means a further recourse to by many borrowers from industrialized coun- the international capital markets. tries. The improvement in credit conditions in Foreign and International Bonds: First Half, 1981 93 the Far East region has been attributed to a high second half of 1980. Borrowing in the foreign level of liquidity and competition. bond market increased from $7,930 million in Several tax-spared loans were launched by the first half of 1980 to $8,212 million during the developing countries. These included Malaysian same period in 1981. Similarly, borrowing in the Airline System's $30 million, ten-vear credit international capital markets increased from priced at LIBOR (no spread), Cyprus Develop- $10,935 million in the first six months of 1980 to ment Bank's $15 million, eight-year credit (0.25 $11,347 million during the first half of 1981. percent over LIBOR), and the Federation of Foreign Bonds. Foreign bonds issued in the Malaysia's $150 million, ten-year credit (0.03125 U.S. market during the first half of 1981 totaled percent over LIBOR). $1,150 million. Borrowers from Canada were the Average spreads on industrialized countries' most active, raising $850 million. Other bor- borrowing during the first and second quarters of rowers were from Sweden ($200 million) and 1981 were 0.89 percent and 0.46 percent, respec- from Venezuela ($100 million). tively. The first quarter average was affected by Foreign bonds issued in Switzerland the $1,400 million project-financing loan for amounted to $3,868 million, or 47 percent of all Woodside Petroleum (Australia), which carried foreign bonds. Borrowers from industrialized spreads ranging from 1.25 percent to 1.875 per- countries raised $3,120 million, or 81 percent of cent over a period of twelve years. Most of the all foreign bonds issued in Switzerland. The French Eurocredits included an 0.25 percent largest amounts were secured bv borrowers from spread, the lowest available on any Eurocredit. Japan ($1,044 million), Austria ($466 million), The Kingdom of Sweden's SDR 500 million and France ($321 million). credit marked the introduction of the SDR- Borrowing in the Japanese capital markets denominated Eurocredits. This was followed by totaled $1,316 million. The largest amounts were other SDR-denominated credits for Ivory Coast raised by borrowers from New Zealand ($165 ($50 million equivalent) and the Republic of Ire- million), France ($139 million), and Australia land ($90 million equivalent). ($126 million). There continues to be an availability of the Foreign bonds were also issued in these LIBOR/U.S. prime rate option as the basis of national markets: Germany ($687 million), loan pricing. Aside from being able to obtain a United Kingdom ($683 million), the Nether- spread over the U.S. prime rate that is usually lands ($175 million), Nigeria ($145 million), Lux- 0.125 percent lower than a comparable one over embourg ($102 million), and Libya ($86 million). LIBOR, borrowers use this option to draw the participation of U.S. regional banks. Many bor- International Bonds. Over 70 percent of all rowers, including those from Chile, Mexico, and international bonds ($8,627 million) were issued Spain, have been offering the LIBOR/U.S. by borrowers from industrialized countries. Bor- prime rate pricing option on their Eurocredits. rowers from the United States ($2,371 million). Several "jumbo" loans were signed during the Canada ($1,889 million), France ($1,278 first six months. Aside from the Woodside million), and Japan ($979 million) were the most Petroleum $1,400 million loan, there were: active. Electricite de France's $1,200 million, ten-year Developing countries raised $1,027 million in stand-by facility (0.5 percent-0.375 percent split the international capital markets during the first margin over LIBOR), the Kingdom of Sweden's half of 1981, or 42 percent above the $722 million $1,400 million loan package ($800 million and borrowed during the equivalent period in 1980. SDR 500 million, both of which carried an 0.375 Eight developing countries obtained funds; the percent-0.5 percent split margin), and Italv's largest amounts were secured by borrowers from Cassa per il Mezzogiorno $1,000 million "earth- Mexico ($735 million) and Spain ($100 million). quake" loan' (ten years, 0.375 percent-0.5 per- International organizations borrowed $1,662 cent split spread over LIBOR or 0.25 per- million in the first six months of 1981. The largest cent-0.375 percent over the U.S. prime rate). amounts were raised by the World Bank ($1,018 million) and the European Investment Bank ($277 million). Foreign and International Bonds: Eighty-two percent ($9,342 million) of all First Half, 1981 international bonds were denominated in U.S. During the first half of 1981, borrowing in the dollars. This contrasts sharply with the last half foreign and international bond markets totaled $19,559 million, a figure above the $18,865 million raised in the first half of 1980 and also 5 To financc reconstruction work following the Novemher 1980 above the $19,394 million raised during the earthquakes. 94 Borrowings and Finance of 1980. when U.S. dollar-denominated bonds million), the Japanese yen (i`167 million), the amounted to S6,788 million or 60 percent of all Euro composite unit ($97 million), the Swiss international bonds. franc ($79 million), the Singapore dollar ($70 Other currencies used in the international million), the deutsche mark (S69 million), the market during the first six months of 1981 were: Canadian dollar ($41 million). the European unit the French franc ($517 million), the pound ster- of account ($40 million), the Norwegian krone ling ($326 million), the Netherlands guilder ($36 million), the Kuwaitl dinar ($26 million), (S309 million), the special drawing right (S206 and the Luxembourg franc (S22 million). 95 Chapter Six Executive Directors Executive Directors In fiscal 1981, the Executive Directors met on seventy-one occasions in formal session, during Although the growing volume and complexity which they reviewed and approved 140 Bank of Bank operations have necessarily been loans totaling $8,809 million and 106 IDA credits accompanied bv detailed consideration and totaling $3,482 million. Thev also approved a determination of an increasing number of policy Bank loan of $100 million to the IFC. The Direc- matters in recent years. the Articles of Agree- tors approved Bank borrowings of S6,100 ment are general enough to give the Executive million. Also reviewed and approved were 20 Directors sufficient flexibility to adjust Bank grants for international agricultural research, a policies to the realities of a changing world. grant for the control of onchocerciasis in With the exception of certain powers specif- Western Africa, and a grant to further the work icallv reserved to them by the Articles of Agree- of the Special Programme on Research and ment., the Governors have delegated their Training in Tropical Diseases. powers for the conduct of the general operations There was general recognition by the Execu- of the Bank to a Board of Executive Directors tive Directors that the external financial require- that performs its duties on a full-time basis at the ments of the developing countries during the Bank's headquarters. There are twenty-one fiscal years 1981-85 had changed since the for- Executive Directors: as provided for in the Arti- mulation of the "Future Role of the Bank" paper cles of Agreement. five are appointed by the five in 1977, because of such factors as higher-than- members having the largest number of shares of expected rates of inflation, the substantial capital stock and the rest are elected by the increase in the rates of return on domestic pro- Governors representingthe othermembers. The duction of energy in the oil-importing develop- President of the Bank is Chairman of the Board. ing countries, the addition of structural-adjust- ment lending, and the representation of China The Executive Directors fulfill dual respon- by the People's Republic of China. In view of the sibilities. They represent their constituents' complexitv and importance of the subject mat- interestsand concernsto the Board and manage- ter, they considered earlv in the fiscal year a ment when determining policy or considering report from the President on energy in the individual projects, as well as the interests and developing countries; they agreed that the concerns of the Bank to the country or countries developing countries required additional techni- that appointed or elected them. The Directors, cal and financial assistance for energy invest- therefore, act as a two-way channel of com- ments, and they endorsed the proposal to study munication between the Bank and the member the feasibility of providing additional financing countries. Since the Bank operates on the basis for energy development in the developing coun- of a philosophy of consensus (formal votes are tries through an energy affiliate. It was also rare), this dual role involves frequent com- agreed that the report would be published in a munication and consultations with governments suitable form. Separatelv. they approved so as to reflect accurately their views in Board arrangements with the United Nations Develop- discussions. ment Programme for the financing of energy- Policy is decided by the Executive Directors sector assessments in developing countries. within the framework of the Articles of Agree- Before the end of the fiscal year, the Directors ment. The Directors consider and decide on the had considered a further report from the Presi- loan and credit proposals made by the President. dent and agreed that discussions should be con- They are also responsible for presentation to the tinued on the Bank's program to expand the Board of Governors at its Annual Meetings of an production of energy in the oil-importing audit of accounts, an administrative budget. the developing countries and on ways by which those Annual Report on the operations and policies of countries' requirements for capital might be the World Bank, and anv other matter that, in financed. ( For further details, see page 67.) their judgment, requires submission to the In their examination of possible expansion of Board of Governors. Matters may be submitted lending by the Bank and IDA beyond the levels to the Governors at the Annual Meetings or at now planned for fiscal years 1982-86 and the any timne between Annual Meetings. means of financing such expansion, the Direc- 96 Executive Directors tors concluded that, because of the severity of agreements that were necessary to cover the cur- the financial problems facing the developing rency pooling system; grace periods and final countries, especially the poorest countries, there maturities on loans in fiscal 1980 and 1981 and was a need for enlarged financial intermediation new amortization periods for engineering loans and that the Bank should take part in this pro- and credits; and an innovative arrangement with cess of intermediation. They also discussed the the Asian Development Bank (AsDB) for proj- policy issues that affect the basis for allocating ect cofinancing based on appraisal reports pre- the lending program of the Bank and IDA pared bv the AsDB. among member countries, according to per Major policy decisions that the Executive capita income levels, sectors, and geographic Directors make annually, or more frequently as areas, separately from the annual review of the necessary, include those concerning the Bank's Bank's financial and operating programs. The lending rate, allocation of its net income, staff Directors authorized IDA to accept advance compensation, and the research program. contributions from governments in order to Following the approval by the Board of Gover- assure that it will have commitment authority nors of the establishment of a World Bank pending the effectiveness of the Sixth Replenish- Administrative Tribunal to adjudicate staff ment, which provides for $12,000 million grievances, the Directors approved the appoint- equivalent in additional funds to IDA, and ment of the candidates for members of the Tribu- which will be used to assist development of high nal, effective July 1. 1980, when it came formally priority in the poorest developing countries, into being. with commitment authority for the three-year In a general amendment of the By-Laws of the period Julv 1, 1980, to June 30, 1983. Bank and of IDA, the Executive Directors Following their decision that the government approved draft reports and resolutions to the of the People's Republic of China represents Governors, who voted affirmatively. China in the Bank and its affiliates, the Execu- Annual reports with which the Directors dealt tive Directors approved a supplement to the fis- had to do with project implementation and cal 1981 administrative expense budget to sup- supervision, the activities of the Joint Audit port the work program for China and a draft Committee, the financial statements of the Bank report and resolution to the Governors, who and IDA, the Economic Development Institute, voted affirmatively to increase China's subscrip- and the Staff Retirement Plan. tion to the Bank's capital. In addition to formal, regular Board meet- Another important policy action dealt with ings, the Directors meet as the Committee of the interim procedures on the valuation of Bank Whole for discussion of certain matters prior to capital subscriptions. Also, with respect to the their submission to the Board for formal action. invitation of observers to attend the Annual They also meet informally as frequently as Meetings of the Board of Governors, the Execu- required. Periodically, the Executive Directors tive Directors advised the Board of Governors hold seminars that permit more informal discus- that they would report to it at the earliest possi- sion than can take place at regular Board meet- ble date, pursuant to Board of Governors ings. Topics discussed included consulting ser- Resolution No. 359. vices, World Bank technical assistance, possible Reaffirming the need for greater efforts to courses of action on valuation of Bank capital develop research capacity in developing coun- subscriptions, and the World Development tries, they considered a sector policy paper on Report, 1980. agricultural research systems and generally As a result of the structural changes in the endorsed the approach of establishing in the working of the Development Committee, the developing countries national agricultural involvement of the Executive Directors in the research institutes that would be linked to inter- determination of the Committee's work pro- national research institutes and agreed that the gram, and in its work generallv, has continued to sector paper should be disseminated widely. increase greatly. In July and August they In a broad variety of specific operational discussed the World Development Report, 1980, policy measures, the Directors examined the staff papers on concessiorary assistance and on issues concerning the existing guidelines on the prospects for capital flows to developing coun- use of consultants by borrowers and the need for tries, a progress report on those of the Brandt their revision. They approved an increase in the Commission proposals that are of relevance to commitment authority of the Project Prepara- the Bank, and a progress report on items con- tion Facility of the Bank and IDA by $30.0 cerning the Bank from the Group of 24 Program million to $87.5 million; modifications of the of Immediate Action, and they agreed that the Bank's General Conditions to facilitate new report should be submitted to the Development techniques of borrowing and also modifications Committee for its September 1980 meeting in applicable to loan agreements and guarantee Washington, D.C. In April 1981 they completed Joint Audit Committee 97 the review of structural-adjustment lending that lished accountants to conduct the annual audits they had called for in their 1980 discussions, and of the Bank, IDA, and the IFC, assured itself they also considered documentation, including that the Bank was getting the best possible ser- the report on selected issues by the Task Force vices from its independent accountants, on Non-concessional Flows, for the meeting of discussed with them the scope of their examina- the Development Committee in May in Gabon. tion, and reviewed with them the annual audited The Directors participated in these meetings as financial statements and the opinions thereon. on previous occasions. In accordance with a In addition, through meetings with the Bank's resolution adopted by the Governors of the senior financial officers, the Committee sought Bank and the International Monetary Fund at to ensure that the Bank's financial affairs are the 1979 Annual Meetings. to again review the properly conducted. performance of the Committee and take such The Committee is also charged with the actions as they deemed appropriate, taking into responsibility of satisfying itself that the Bank's account the views and recommendations of the internal audit and operations evaluation are ade- Executive Boards of the Bank and the Fund quate and efficient. It therefore reviewed the expressed by June 30, 1981, the Directors pre- work programs of the Internal Auditing and pared a report, jointly with Fund Directors, for Operations Evaluation Departments, the work consideration and action by the Boards of in progress, desirable standards, and procedures Governors at the 1981 Annual Meetings. of reporting. Through a subcommittee, it gave Budgets of the Committee are submitted to the special attention to Project Performance Audit Executive Directors for approval. Reports to determine how well the Operations During the year, the Executive Directors con- Evaluation Department carries out its assess- sidered the fifth annual report of the Director- ment of individual projects. The Committee General, Operations Evaluation, the sixth itself reviewed most other papers produced by Annual Review of Project Performance Audit the Operations Evaluation Department and Results," and the fiscal 1981-82 operations identified those giving rise to policy issues that evaluation work program and manpower may be considered by the Executive Directors. budget. The Director-General, Operations The Committee decided to establish a second Evaluation, is directly responsible to the Direc- subcommittee to examine a number of reports of tors and is outside the regular staff structure of the Internal Auditing Department. the Bank but is linked administratively to the Of continuing concern to the Committee is the President. They continued to support the adequacy of the flow of financial information to Operations Evaluation Department in its efforts the Executive Directors in order for the Board to to enlarge the involvement of borrowers in the discharge its responsibilities properly with evaluation process. respect to the financial policies of the Bank. A list of the Executive Directors and Alter- Accordingly, the system for providing financial nate Executive Directors, showing their voting information to the Board is reviewed peri- powers and the countries they represent, with odically by the Committee. notations of changes since the last regular elec- The Committee provides a continuous chan- tion of Executive Directors, appears on page nel through which the internal and external audi- 205. tors can communicate with the Executive Directors should the need arise. It meets as fre- Joint Audit Committee quently as necessary, normally once a month. During the year the membership of the Commit- The Joint Audit Committee was established in tee was increased from six Executive Directors 1970, essentially to represent the shareholders of to eight in order to meet the Committee's the Bank in maintaining vigilance over the expandingworkload.Membersareappointedby soundness of the Bank's financial practices and the Board for a term of two years after each procedures. In pursuing its responsibilities dur- regular election of Executive Directors. Since ing fiscal 1981, the Committee nominated a firm December 1980, Anthony IJ. A. Looijen has of private, independent, internationally estab- served as Chairman of the Committee. 99 Projects Approved for Bank and IDAAssistance in Fiscal 1981, by Sector Acronyms Used in This Section GTZ--German Technical Assistance Corporation ADAB-Australian Development Assistance IDB-Inter-American Development Bank Bureau IFAD-- International Fund for Agricultural ADF-African Development Fund Development AfDB-African Development Bank IsDB-- Islamic Development Bank AGCD--Belgium Administration for KFAED--Kuwait Fund for Arab Economic Development Cooperation Development AsDB--Asian Development Bank KfW--Kreditanstalt fur Wiederaufbau BADEA-Arab Bank for Economic LAFB Libyan Arab Foreign Bank D)evelopment in Africa NMDC--INetherlands Minister for CCCE Caisse Centrale de Cooperation Development Cooperation Economique ODA-Overseas Development CDB-Caribbean Development Bank Administration, United Kingdom CDC-Commonwealth Development OECF-Overseas Economic Cooperation Corporation Fund CIIDA-Canadian International OPEC-Organization of Petrolcum- D)evelopment Agency Exporting Countries DANIDA Danish International SDC-Swiss Development Corporation D)evelopment Agency SFD-Saudi Fund for Development EDF-European Development Fund SIDA--Swedish International Development EIB-European Investment Bank Authority FAC Fonds d'Aide et de Cooperation UNDP United Nations Development FAO-Food and Agriculture Organization Programme of the United Nations USAID-United States Agency for FINNIDA-Finnish International International Development I)evelopment Agency WFP-World Food Programme Agriculture and Rural Development by providing improved extension, training, BANGLADESH: IDA-$40 million. This and social services, the production of cotton agricultural credit project-including funds and food crops in Borgou province will be for the installation of tube wells, grain- expanded, increasing the incomes and raising storage facilities, equipment, technical the standards of living of some 39,000 farm assistance, and training-will help establish a families. Cofinancing ($14 million) is being replicable long-term credit delivery system provided by IFAD. Total cost: $37.8 million. and increase agricultural production, BRAZIL: Bank-$60 million. To assist the incomes, and employment opportunities in country's national agricultural research rural areas. Total cost: $62.4 million. agency in expanding its current research BANGLADESH: IDA $18 million. Some programs and to support several new 180,000 farm families will benefit from the programs, funds will be provided to train increase in agricultural production and scientific manpower and upgrade existing incomes made possible through the research facilities. Technical assistance is development of hand irrigation from tube included. Total cost: $150.1 million. wells. The project will also ensure a safer BRAZIL: Bank-$56 million. About 60,000 domestic water supply and encourage the farm families and more than 1,000 small- local manufacture of irrigation equipment. scale entrepreneurs will benefit from a Total cost: $30.1 million. second rural development project in the BENIN: IDA-$20 million. By strengthening northeastern state of Ceara that includes and supporting agricultural institutions and agricultural extension services, development I1C Projects Approved, Bank and IDA, by Sector of cooperatives, assistance to small CHILE: Bank-$36 million. A second enterprises, construction of feeder roads, agricultural credit project will provide marketing facilities, and irrigation systems, investment credit and technical assistance to and education, health, and sanitation small and medium-sized farmers and services. Cofinancing ($25 million) is being ranchers and to ninety agroindustrial provided by IFAD. Total cost: $163.2 million. enterprises to help increase agricultural BRAZIL: Bank-$29 million. The incomes of output and earnings and to improve the some 11,300 poor families living in rural and living conditions of some 3.000 farmer and coastal areas of the state of Piaui will be rancher families. Total cost: $90 million. improved through a project that includes the COLOMBIA: Bank-S37 million. The project acquisition and allotment of 200,000 hectares will provide for the rehabilitation and for redistribution, land tenure, agricultural maintenance of irrigation and drainage research and extension services, basic systems in eight districts covering 47,000 education, marketing facilities, small-scale hectares. Productivity, employment, and irrigation schemes, fisheries, feeder roads, incomes will be increased on about 4,700 and improved water-supply systems. Total farms, including nearly 1,500 that are cost: $84.4 million. farmed by beneficiaries of land reform. BURMA: IDA-$32 million. The use and Technical assistance is included. Total cost: efficiency of the country's forests and forest $86.3 million. industries sector will be enhanced through CYPRUS: Bank $14 million. A four-year the modernization and rehabilitation of two development program for the horticultural teak sawmills and two plywood mills, and viticultural subsectors, including farm allowing for increased production of wood development, processing and marketing products, such as furniture, teak veneer, and facilities, improved extension service and flooring products. About $17 million in research, and the establishment of an export annual revenues will be generated. promotion facility, will bc tinanced. Total Cofinancing ($1.9 million) is being provided cost: $32.9 million. by FINN IDA. Total cost: $63.8 million. DOMINICAN REPUBLIC: Bank-$24 million. Cocoa and coffee farms, affected by BlURMA: IDA---$23 million. By providing new a hurricane in 1979, will be rehabilitated, permanent storage facilities for rice, crops will be replanted, nurseries will be rehabilitating existing facilities, and established, and technical assistance will be improving pest control and transport services, provided to the Ministry of Agriculture and rice storage losses-valued at about $6.3 the Agricultural Bank in order to improve million anrnually will be reduced, the the productivity and incomes of small-scale quality of the rice will be improved, and producers whose output is mainly for export. annual foreign-exchange earnings may Total cost: $40 million. increase by about $7 million. lotal cost: ECUADOR: Bank--$20 million. The S39.1I million, productivity, incomes, and general living BURUNDI: IDA-$19.3 million. Some 28,000 conditions of some 10,000 poor rural families farm families will benefit from a project that living in the western foothills of the Andes will increase the production of coffee and will be improved through the financing of food crops through the provision of agricultural support services and through the agricultural extension services, afforestation regularization of land tenure, the and erosion-control measures, improved road construction and improvemnrt of rural roads, and water-supply networks, and the and the provision of potable water, primary construction and equipping of six coffee- health-care services, and school facilities. washing stations and twelve hand pulping Total cost: $57.1 million. centers. Totai cost: $21.4 million. EGYPT, ARAB REPUBLIC OF: IDA-$80 CAMEROON: Bank-$25 million; million. About 4,000 low-income farm IDA-$12.5 million. The incomes of 163,000 families living in West Nubariya will benefit farm families living in Northern province will from the reclamation of desert land, be increased through improved rural including irrigation and drainage works, infrastructure, effective extension and credit construction of economic and social services, training, and research. In addition, infrastructure, and provision of farm financial and technical assistance will be machinery, consultant services, and training. extended to local agencies to plan, monitor, In addition, a bilharzia control program will and evaluate a wide range of rural be supported. Cofinancing is being provided development activities. Total cost: $66 by the ADF ($10 million) and the WFP million. ($3.1 million). Total cost: $193 million. Agriculture and Rurc Development 101 EGYPT, ARAB REPUBLIC OF: IDA-$14 cooperative warehouses and cold storage and million. The aim of the project-which marketing facilities in nine states. More than includes fish-farm facilities, housing for 3.2 million farm families are expected to workers, facilities and equipment for training benefit. Total cost: $267 million. and collection of mullet fry, fish-marketing INDIA: IDA-$83 million. Two barrages will and project-preparation studies, and technical be constructed in Orissa state across the assistance-is to increase fish production, Mahanadi and Birupa rivers to ensure the thereby improving nutrition and reducing continued irrigation of 167,000 hectares. dependence on imports, and to improve the The income of farmers and the employment incomes and job opportunities of the rural of agricultural laborers will thus be population and contribute toward institution safeguarded. In addition, a drainage master building in the fisheries sector. Total cost: plan designed to improve water-management $26.3 million. practices throughout the Mahanadi delta ETHIOPIA: IDA-$40 million. About 1.6 area is included. Total cost: $110.3 million. million farm families are expected to benefit INDIA: IDA $54 million. About 8,000 farm from a second agricultural "minimum families will benefit from the construction of package" project, the aim of which is to 1 20 to 160 tank-irrigation schemes on 25,000 increase the productivity and incomes of hectares in Karnataka state. In addition, the small farmers by providing fertilizer, government will be assisted in creating an improved seeds, and other agricultural inputs, improved hydrological data base, and a study and through an expansion of soil and water of ways to make more efficient use of conservation efforts and assistance to the irrigation water will be conducted. Total cost: Ministry of Agriculture. Cofinancing is being $77.4 million. provided by IFAD ($18 million) and SIDA INDIA: IDA-$37 million. Agricultural ($900,000). Total cost: $77.2 million. extension services will be reorganized and GUINEA: IDA-$17.5 million. Through a strengthened in thirty districts of Madhya livestock development project including Pradesh state to increase crop production and vaccinations, provision of drugs, medicines, the incomes of some 3.8 million farm and mineral licks, and upgrading of the families. Total cost: $60 million. livestock husbandry and veterinary support INDIA: Bank-$30 million. The incomes of services-milk and meat production will be about 23,000 farm families and owners of increased, nutrition improved, and the livestock who live in the foothills of the standard of living of cattle owners upgraded. Himalayas will be increased through In addition, a planning unit for livestock reforestation and soil-conservation measures development will be established. Total cost: and the development of agricultural land in $21 million. five watershed areas. Technical assistance is HAITI: IDA--$3.2 million. By providing included Total$28ost:n Crop production is fertilizer, extending credit for labor and farm IDA D -2 ilo.Co rdcini ferutilize, extending crffed forslabori and farm expected to increase throughout the fifteen inputs, expanding coffee nurseries, agricultural districts of Tamil Nadu state purchasmg tools, and building regional farm- through the introduction of the training-and- development centers, food productiopa will be visit system of agricultural extension. About restored and part of the coffee crop affected 3.8 million farm families will benefit. Total by the 1980 hurricane will be salvaged, cot: $45.6 millin About 10,000 farmers are expected to INDIA: IDA-$23 million. By providing benefit. CoTtnancng ($1.6 millon) is being better agricultural extension services in provided by USAID. Total cost: $5.2 million. Maharashtra state through the introduction INDIA.: IDA---$140 million. During a five-year of the training-and-visit system, some 5.8 period, production of food grains in Madhya million farm families will benefit from Pradesh state will be increased by more than increased crop production and higher 200,000 tons and the standards of living of incomes. Total cost: $38.2 million. local farmers will be raised through the INDONESIA: Bank-$161 million. More than irrigation of some 107,000 hectares and by 19,000 families will be resettled in West Java improvements in planning, design, and West Kalimantan with the intention of construction, and operation of medium improving their livelihoods through the irrigation projects. Total cost: $232.1 million. establishment of about 53,000 hectares of INDIA: IDA-$125 million. Funds will be tree crops. food crops, and home gardens. provided through the National Cooperative Total cost: $322 million. Development Corporation for relending INDONESIA: Bank-$46 million. The through state cooperative banks for incomes of some 40,000 smallholder 102 Projects Approved, 3ark ard IDA, by Sector families-20 percent of whom have incomes data base management syscm. Total cost: below the absolute poverty line-will be S14.2 million. increased by expanding coconut production to MADAGASCAR: IDA- s2.3 million. meet the rising domestic demand for coconut Preinvestment studies to dci.ne an integrated oil and reducing imports of it and by flood-control and developm-ent program for strengthening the organization of the national the Antananarivo plain and improvement of smallholder coconut development program. the research stations for crosion and soil Training and technical assistance are protection and the hydrological and flood- included. Total cost: $95.2 million. alarm network will be supported. Total cost: INDONESIA: Bank-$22 million. Some 9,000 $2.9 million. hectares of swampland in South Sumatra will MALAYSIA: Bank-$5G million. About be reclaimed and new farms and associated 35,000 people will benefit from a settlements will be created for 3,200 development program in Perak state that transmigrant families as a first step in includes the construction of irrigation and supporting the government's swamp- drainage infrastructure, roads. housing, reclamation program. In addition, the loan community facilities, and palm-oil and cocoa will finance the preparation of future mills, the development of new land for rice investments in swamp reclamation, an and tree crops, and support services for ecological impact study, and an investigation agriculture and community development. of the possibility of using groundwater for Total cost: $200 million. drinking and will support project monitoring. MALAYSIA: Bank-$40 rillion. The incomes Total cost: $44.6 million. of about 24,000 smallholier rice farmers KENYA: Bank-$25 million; IDA-$IO living in southeastern Pahang state will be million. The Agricultural Finance increased and their standards of living raised Corporation, a primary source of medium- by developing new land and by providing term and long-term credit to farmers, will be flood and salinity controi, irrigation and strengthened and its performance improved drainage infrastructure, and integrated to enable it to serve the growing credit needs agricultural support services. Total cost: $141 of the country's farmers more effectively. million. Total cost: S50 million. MALAYSIA: Bank-S37 mijiion. The incomes KOREA, REPUBLIC OF: Bank $50 million. of about 12,000 low-income rural households Through a four-year period, credit will be will be increased through land rehabilitation provided to small farmers and agricultural and development schemes on some 34,000 cooperatives for the construction of hectares. Two palm-oil mills will also be built greenhouses, a sprinkler irrigation system, and staff housing, vehicles, and equipment on-farm storage facilities, spraying will be furnished. Total cost: $139.1 million. equipment, and related activities to help MALAYSIA: Bank-$30 million. The project increase the production of high-value fruits will make funds available for about 8,000 and vegetables, increase farm productivity, medium-term and long-term loans to and provide opportunities for off-season farmers, fishermen, and enterprises in the employment. Total cost: $114.2 million. rural sector. About 80 percent of these loans MADAGASCAR: IDA-$20 million. A second will go to smallholders and will enable the forestry project includes the establishment poorest farmers to participate in a large and maintenance of about 18,000 hectares of rubber-replanting program. Total cost: $79.4 pine and 500 hectares of eucalyptus million. plantations in the Mangoro valley, the MALAYSIA: Bank-$25 million. The incomes maintenance of 70,000 hectares of existing and living conditions of some 7,500 low- plantations. the construction of roads and income, rural families participating in the buildings, and research, training, and project- land-settlement schemes of the Kelantan preparation studies. Cofinancing is being Land Development and Rehabilitation provided by BADEA ($4.2 million) and the Corporation (TAKDIR) will be improved by UNDP ($900,000). Total cost: $30.2 million. rehabilitating 10,530 hectares of existing MADAGASCAR: IDA $11.5 million. The perennial crops and planting 11,340 hectares policy of the government to extend credit for of additional perennial crops, completing smallholder agricultural development will be basic infrastructure on the schemes, and supported by providing funds to the National strengthening TAKDIR through the Bank for Rural Development (BTM) for provision of additional staff and facilities. onlending to farmers and cooperatives. Total cost: $70.2 million. Training for BTM staff is included, as is a MAURITANIA: IDA-$]5 million. Through feasibility study for the establishment of a the construction of a concrete dam, a Agr culture ard Rura Deve oprrent 103 conveyance canal, irrigation and drainage enable year-round access to the project area. networks. servicc roads, and related Cofinancing ($850,000) is being provided by buildings, some 3.620 hectares for the the UNDP. Total cost: $9.7 million. cultivation of rice, corn, sorghum. and NEPAL: IDA $6.2 million. Grain-storage vegetables will be developed. Cofinancing is facilities will be built and the management being provided by the EDF ($15.8 million), and organization of the Nepal Food IFAD ($10 million), the SFD (S$! million), Corporation and the rice export companies LAI-B ($10 million), the KfW ($8.5 million), will be strengthened in order that the the Abu Dhabi lund (S6.4 million), the government may be able to meet IsDB ($6 million), and the FAC ($5.4 requirements for the procurement, million). Total cost: $93.2 million. distribution, and export of food grains and MEXICO: Bank -5325 million. About 140,000 reduce storage losses. Studies of marketing rural families will benefit from increased and pricing of food grains and of future income and employment opportunitics needs for facilities for storage and processing generated by an agricultural credit project of food grains will be undertaken. Technical that includes medium-term and long-term assistance is included. Total cost: $8.04 credit for investment in crop development, million. livestock production, fisheries, and NEPAL: IDA--$3.5 million. The government agroindustries. Technical assistance and will be assisted in the preparation of final training arc includcd. Total cost: $1,179 designs, tender documents, and evaluation of MillICOn Bak-$8 ilo.B salsig tenders for a proposed irrigation project to MIEXICO: Bank --S$280 million. By establishing cover 13,500 hectares in the Babai river area. programs for agricultural research, extension The proposed project would provide farmers services, soil and water conservation, forestry, with a more reliable supplv of water, reduce short-term and medium-term credit, and a dependence on erratic monsoons, and rural works program, including thedeneceoeraimnsn,ad construraltworks progfaram,includin t increase production of food grains. Total cost: construction of farm-to-market roads, $3.55 million. irrigation schemes, and drainage facilities, some 162,000 farm families living in rainfed NIGERIA: Bank-$142 million. Support areas will benefit from increased agricultural services and physical infrastructure for farms production and higher incomes. Total cost: will be financed to help increase the $797 million. production of food crops and the incomes of MEXICO: Bank--$23 million. About 2,000 some 600,000 smallholder farm families farm families will benefit from intensive living in Kano state. Total cost: $482.2 irrigated agriculture on 10,000 hectares in mitlion. the Ocoroni valley. Studies for future NIGERIA: Bank-$132 million. Some 425,000 development of irrigation and drainage in smallholder farm families living in Bauchi Ocoroni and in two other river basins will state will benefit from a package of support also be financed. Total cost: $54.6 million. services, including extension advice, better NEPAL: IDA-$17.5 million. Agricultural seeds, and crop-protection measures and from extension services will be strengthened and the construction of feeder roads and a rural reorganized and adaptive research upgraded water-supply system. Total cost: $350.6 to provide improved services to eight of the million. twenty districts of the Terai. By supporting PAKISTAN: IDA-$41 million. The low-cost, labor-intensive agricultural project-including civil works required for practices, and by adopting improved varieties the renovation of about 2,000 watercourses of seeds and providing fertilizer, the and heavy cleaning and minor improvement procuction of food grains will increase for of 16,500 other watercourses, research on some 360,000 farm families. Cofinancing integrated water-management activities, ($650,000) is being provided by the UNDP. training, and technical assistance--is Total cost: $20.85 million. designed to increase agricultural production NEPAL: IDA $8 million. By providing and the incomes of some 800,000 families. extension services for undertaking low-cost Cofinancing ($12 million) is being provided farming practices in four western hill by IFAD. Total cost: $111.58 million. districts, about 76,000 farm families will PAKISTAN: IDA $32 million. The project benefit from increased food production, will assist the government in the better animal-health services, increased implementation of its food-grain policy by availability of livestock feed and fertilizer, an providing additional storage facilities and improvement in irrigation services, and the improving the efficiency of provincial food upgrading of local trails and bridges to departments. Technical assistance is 104 Pro ects Approved, Bank ard IDA, by Sector included. Cofinancing ($7.7 million) is being foreign-exchange earnings. Total cost: $412.2 provided by the SDC. Total cost: $68 million. million. PAKISTAN: IDA-$24 million. The project is ROMANIA: Bank-$80 million. Through the designed to improve the institutional construction of irrigation and drainage arrangements for the national planning, systems and through control of soil erosion monitoring, funding, and implementing of and reclamation of sandy land for agricultural research programs by providing agricultural use in the areas of Caracal and the Pakistan Agricultural Research Council Titu. crop production will be increased on with additional staff and facilities, by more than 130,000 hectares, and it is supporting subprojects conducted by other expected that annual farm incomes will more research agencies, and by providing technical than double. Total cost: $379.3 million. assistance and training for research ROMANIA: Bank-575 million. The personnel. Total cost: $40.05 million. construction of four irrigation and drainage PAPUA NEW GUINEA: IDA--$15 million. systems and related facilities in the During a three-year period, a share of the southeastern part of the country is expected Papua New Guinea Development Bank's to increase the average annual income from planned agricultural lending will be financed crop production from abourt S106.1 million to in order to improve the standard of living of about $242.8 million. Total cost: $375.3 about 4,000 farm families. Total cost: $28.6 million. million. RWANDA: IDA-$15 million. About 75,000 PARAGUAY: Bank 30millin. Afarm families living near Lake Kivu will PARAGUAY: Bankg-$30 million. A benefit from an increase in the production of countryide agicultual-creit andcoffee and food crops made possible by the technical-assistance program with the aim of ioveent of cr vice bette increasing the production of livestock and planting methods and seeds, a program to agricultural crops will help improve the living i ng prods and soil, coffee- standards of small farmers and will assist the improve and protect the soil, coffee- secto in mking ette use f itslandprocessing equipment, toe rehabilitation of sector n makig better use of its land landing points on the lakc. and crop research. Cofinancing ($600,000) is being provided by PHILIPPINES: Bank-$45 million. The the SDC. Total cost: $16.6 million. government s policy of increasing the supply SENEGAL: IDA-$9.3 million. To meet the of animal protein through provision of steadily growing demand for fuel wood and medium-term and long-term credit through forest products in Dakar and the surrounding the Development Bank of the Philippines to rural areas, state-managed tree plantations both the livestock and fisheries subsectors will be established and maintained; rainfed will be supported. Technical assistance tree plantations will be established; measures designed to strengthen institutional capability to improve the productivity and management for planning and implementing the current of 10,000 hectares of existing natural forests and future programs is included. Total cost: will be instituted; an applied forestry $140.66 million. research program will be financed; and a PHILIPPINES: Bank-S38 million. The training center for forestry agents will be project-including reforestation in two constructed. Cofinancing is being provided by watersheds, construction and maintenance of the CCCE ($3.4 million), the FAC ($1.8 forest roads, construction of charcoal ovens, million), and the UNDP/FAO ($800,000). pilot programs in range management and Total cost: $17.1 million. smallholder agroforestry, and the initiation of SIERRA LEONE: IDA--$12 million. About pilot programs of forest protection in two 12,600 farm families who live in Eastern provinces-will help preserve and enhance province will benefit from a project that the productive capacity of the catchments includes the provision of agricultural inputs, and provide a permanent and better credit, extension services, feeder roads, livelihood for the local population. Total cost: village wells, and technical assistance. $75 million. Cofinancing is being provided by BADEA ROMANIA: Bank-$80 million. The ($8.5 million) and the lNDP ($1.9 million). project-including the modernization of dairy Total cost: $25 million. farms, production farms, beef-fattening units, SIERRA LEONE: IDA-$8.5 million. About pasture units, processing and storage 13,500 farm families living in Northern facilities, and technical assistance-is part of province will benefit from the provision of a five-year plan to increase the production of agricultural inputs, credit, extension services, milk and beef to meet the domestic demand feeder roads, village wells, and technical for these products and to generate additional assistance. Cofinancing is being provided by Agr cu ture and Rural Deve opment 105 the ADF ($8.5 million), IFAD ($6 million), THAILAND: Bank-$57 million. A twelfth and the UNDP ($2 million). Total cost: irrigation project will assist the Royal $27.7 million. Irrigation Department in its continuing SRI LANKA: IDA-S90 million. About program to improve and expand the country's 28,000 farm families will benefit from the irrigation facilities. Some 6,800 farm development of some 28,000 hectares in the families, 40 percent of whose incomes are Mahaweli river basin, including irrigation below the level of absolute poverty, will facilities, the clearing of land, social and benefit directly from increased agricultural managerial infrastructure, and fuel-wood and production, and jobs will be created for about cashew plantations. Technical assistance is 2,000 landless laborers. Total cost: $115 included. Cofinancing is being provided by million. the OECF ($45 million) and the KFAED THAILAND: Bank-S30 million. Most of the ($45 million). Total cost: $201.8 million. country's 5 million farm families will benefit SRI LANKA: IDA $33.5 million. About from increased crop production and incomes 130,000 farm families will benefit from a through the strengthening of the capacity of second rural development project for the the Department of Agriculture (DOA) to purpose of increasing productivity, implement research programs and provide employment, and incomes and raising new and improved technology. Included are a standards of living. Irrigation facilities, training program and the development of agricultural credit, water-supply services, and nineteen research centers, reorganization and the development of crops, forestry, livestock, decentralization of the DOA, and and fisheries are included. Total cost: $50.01 establishment of a stronger link between million. research and extension. Cofinancing is being SRI LANKA: IDA-$30 million. Agricultural provided by IFAD ($15 million) and the production and farm incomes will be ADAB ($2 million). Total cost: $91.5 million. increased by rehabilitating some 1,200 village TUNISIA: Bank-$24 million. A five-year irrigation schemes, strengthening the phase of the government's fifteen-year principal government institutions that are development program to increase the incomes involved in village irrigation, initiating a and improve the nutrition, health, and systematic program of water management, education of people living in the Northwest and establishing an evaluation program egion of beople he im of the designed to assist project implementation and region will be financed. The aim of the the preparation of future village irrigation eprogram is to create jobs, develop loal schemes. Total cost: S43.7 million, energy resources, and increase agricultural SUDAN: IDA-$35 million. During a five- productivity. Cofinancing ($1.7 million) is SUAN ID. 3 ilo.Drn ie being provided by the GTZ. Total cost: $61.5 year period, some 174 pump schemes on the bein. p White Nile will be rehabilitated to increase mllion. crop production, expand cotton exports, TURKEY: Bank-$40 million. This first phase increase the incomes of some 28,000 tenant of a program to increase the production of families and help place the schemes on a fruits and vegetables for export includes the sound financial footing. Total cost: $54.7 establishment of seven nurseries, 2,000 million. orchards, 100 vineyards, and 150 SUDAN: IDA-$32 million. Rehabilitation of greenhouses, the provision of credit to the irrigation system in the Shasheina region existing farms and orchards, extension and other areas along the Blue Nile will services, four regional marketing corporations benefit some 17,000 farm families through and a central marketing organization, and increased production of cotton, peanuts, the preparation of a master plan for further sorghum, and vegetables. Cofinancing ($10 horticultural development. Total cost: $107 million) is being provided by the AfDB. Total million. cost: $67.3 million. UPPER VOLTA: IDA $16 million. More TANZANIA: IDA-$6.8 million. A firm base than 200,000 poor people will benefit from a for the rehabilitation of the coconut industry second Bougouriba agricultural development will be prepared during a five-year period by project, the aim of which is to consolidate the financing trials to determine the most experience of a first-phase project and appropriate varieties of coconut for each increase agricultural and livestock production region, a seed garden for the production of further. Extension services, a supply and hybrid seed nuts, soil and hydrological credit service, animal-health services, a surveys, the preparation of a feasibility study, forestry component, and technical assistance and technical assistance, consulting services, and evaluation studies are included. Total and staff training. Total cost: $8.5 million. cost: $17.5 million. 106 Projects Approved, Bank and DA, by Sector WESTERN SAMOA: IDA-$2 million. A production is expected to increase about 70 second agricultural development project will percent during the next four years. In assist the government in increasing addition, the project provides for a data- agricultural production and export earnings, processing and management-information saving foreign exchange, and providing better system, staff training, and a number of pilot incomes and employment opportunities in the projects. Cofinancing ($27.4 million) is being rural sector. Cofinancing is being provided by provided by the CCCE. Total cost: $80.4 the AsDB ($3 million) and the ADAB ($2 million. million). Total cost: $7.8 million. ZAMBIA: Bank-$1I million. The incomes of YEMEN ARAB REPUBLIC: 1DA-$17 about 26,000 smallholder farm families living million. The incomes and quality of life of in Eastern province will be increased through about 60,000 rural families will be improved the establishment of agricultural research by a project that includes expansion of and extension services and the construction of agricultural extension services, social services, facilities for storage and processing of crops. and livestock-health and production services; In addition, technical assistance, a line of provision of credit for agricultural investment credit to smallholders, and a program for the through the Agricultural Credit Bank; control of the tsetse fly are included. technical assistance; construction of water- Cofinancing ($1 I million) is being provided supply systems; extension of a bilharzia by IFAD. Total cost: $28.1 million. control program; and completion of feasibility studies for future agricultural Development Finance Companies development projects. Cofinancing is being BANGLADESH: IDA-$50 million. Foreign provided by IFAD ($14 million), the Abu exchange will be provided through the Dhabi Fund ($10 million), and the SDC ($6 Bangladesh Shilpa Bank to finance the costs million). Total cost: $81.6 million. of capital goods and services for projects in YEMEN, PEOPLE'S DEMOCRATIC the industrial sector in order to assist the REPUBLIC OF: IDA-$8 million. By government in expanding the activities of the rehabilitating the irrigation network and private sector in industrial investment in improving the groundwater irrigation system, nontraditional, export industries, efficient by providing technical assistance, farm import-substitution industries, and projects in inputs, and agricultural equipment, and by less developed areas. constructing feeder roads, agricultural HAITI: IDA-$7 million. Medium-term and production and incomes in the Beihan long-term credit will be made available subgovernorate will be increased. through the Fonds de Developpement Cofinancing ($6 million) is being provided by Industriel to finance industrial projects. Total IFAD. Total cost: $18.1 million. cost: $11 million. YUGOSLAVIA: Bank-$90 million. Funds JAMAICA: Bank-$37 million. An increase in will be relent through the Udruzena the resources available to the Export Kosovska Banka Pristina for agricultural and Development Fund Jamaica Ltd. and agroindustrial projects designed to increase financing of the import of raw materials, the productivity and incomes of farmers and intermediate goods, packaging materials, and laborers living in Kosovo, the country's least spare parts will support the government's developed region. Total cost: $270 million. program to expand nontraditional YUGOSLAVIA: Bank-$87 million. Funds manufactures and banana exports. Technical will be made available to Investbanka of assistance is included. Serbia for onlending to agricultural KOREA, REPUBLIC OF: Bank-$100 enterprises and cooperatives, including about million. Funds will be made available to 11,000 individual farm families. Agricultural cover the foreign-exchange requirements of productivity, employment opportunities, and industrial subprojects to be financed by the farm income in the Morava region-one of Korea Development Bank during the next the country's poorest rural areas-are all two years. expected to rise as a result. Total cost: $288.4 KOREA, REPUBLIC OF: Bank-$90 million. million. As part of a comprehensive reform of the ZAIRE: IDA-$26.4 million. Through the country's financial system, funds will be rehabilitation and extension of an existing provided through the Korea Long-Term sugar plantation, as well as the provision of Credit Bank to support industrial projects equipment for the transport of sugarcane, during the next two years. civil works to expand processing facilities and KOREA, REPUBLIC OF: Bank-$60 million. construct offices and staff housing, and the Funds will be made available to help cover implementation of a research program, sugar the foreign-exchange requirements of Educaton 107 subprojects to be financed by the Small and THAILAND: Bank-$30 million. Funds will Medium Industry Bank during the next two be made available to the Industrial Finance years. Corporation of Thailand to cover part of the MOROCCO: Bank-$100 million. The foreign-exchange costs needed for industrial project-including the development of subprojects during the next two years. tourism, for the most part hotels financed by TURKEY: Bank-$70 million. Funds will be the Credit Immobilier et H6telier (CIH) provided to the State Investment Bank for under loans to be made through 1983, a cost- relending to three state economic enterprises benefit study of tourism investments, and a for the completion of six high-priority training program for CIH staff-is expected projects for rationalizing and increasing the to generate net foreign exchange in the production of sugar, iron, and copper. amount of $128 million annually by 1987, Technical assistance is included. Total cost: create about 21,000 new jobs, and produce $187.4 million. net fiscal revenues of $37 million a year TURKEY: Bank $40 million. Foreign within five to ten years. exchange will be provided to the Sinai NICARAGUA: Bank-$30 million. By Yatirim ve Kredi Bankasi to finance labor- financing raw materials, spare parts, intensive projects undertaken primarily by equipment, civil works, technical assistance, small and medium-scale enterprises for and training, industrial and mining imported and locally produced equipment. enterprises that suffered physical and The project, which will create about 5,000 financial damage during the 1979 civil war jobs in twenty-three urban centers, is will be able to regain prewar levels of output, expected to provide a model for replication, exports, and employment. Total cost: $43 on a larger scale, in other high- million. unemployment areas. PANAMA: Bank-$20 million. Funds will be URUGUAY: Bank $30 million. Funds will be provided through the Corporaci6n Financiera onlent through commercial banks for Nacional (COFINA) to finance subloans for industrial, agroindustrial, and tourism projects in the industrial sector and for projects and to help establish capacity for technical assistance, staff training, and the promotion and formulation of projects within services of consultants to strengthen the participating private intermediary banks. management of COFINA and improve its Technical assistance is included. Total cost: efficiency and promotional activities. $66.14 million. PERU: Bank-$60 million. Funds will be YEMEN ARAB REPUBLIC: IDA-$12 provided through the Corporaci6n Financiera million. Funds will be provided to the de Desarrollo to help finance projects in the Industrial Bank of Yemen (IBY) to cover industrial, mining, and tourism sectors. about 50 percent of the resources that it will PHILIPPINES: Bank-$150 million. Funds require through 1983. Technical assistance to will be onlent through the specially created help the IBY improve its capability in Apex Development Finance Unit in the identifying, appraising, and supervising viable Central Bank of the Philippines to accredited industrial projects is included. financial institutions for the financing of YUGOSLAVIA: Bank-$I 10 million. Funds projects in the industrial sector. Cofinancing will be provided to four local banks for ($400,000) is being provided by the UNDP. onlending to small and medium-sized Total cost: $250.4 million. industrial enterprises to help promote PORTUGAL: Bank-$100 million. Funds will economic development in four low-income be provided to the Banco de Fomento regions. About 1 1,000 jobs will be created. Nacional (BFN) to support the development ZAMBIA: Bank-$15 million. Funds will be of industrial projects, to assist the BFN in provided to the Development Bank of strengthening its export investment Zambia to support medium-scale and large- promotion and service capabilities, and to scale industrial, agroindustrial, and contribute to the industrial reorganization of agricultural projects through March 1982. the country in preparation for its entry into the European Economic Community. Education SOLOMON ISLANDS: IDA-$1.5 million. ARGENTINA: Bank-$58 million. Thirty Funds will be provided through the vocational training centers will be Development Bank of Solomon Islands for constructed and equipped, five more will be medium-term and long-term loans to support equipped, fifty mobile units will be projects in the agriculture, manufacturing, purchased, and curricula will be developed in and transport sectors. Cofinancing ($2 order to improve the effectiveness of million) is being provided by the AsDB. vocational training, increase the supply of 108 Projects Approvec, Bcnk cnd DA, by Sector skilled labor, and improve the mobility of advice on curricula and teaching materials. labor. Technical assistance is included to help Total cost: $53.65 million. strengthen planning and operating INDONESIA: Bank-$45 million. This first capabilities of the National Council for phase of a long-term university development Technical Education. Total cost: $149.5 program has the aim of increasing the output million. of high-level manpower in the fields of BAHAMAS: Bank-$7 million. The engineering, science, agriculture, and project-including the construction, economics, improving the quality of equipping, and furnishing of an industrial university education, and strengthening the training center, educational workshops and management of the whole university system. laboratories, facilities for the College of the Total cost: $65.2 million. Bahamas, a hotel-training college, and a KENYA: IDA-$40 million. A fifth education department of nursing education-will help project will provide training for staff in increase the number of skilled graduates in school management and administration, technical and vocational fieids qualified to technicians in agriculture and development of assist in the development of tourism and water resources, and skilled industrial other industries in the islands. Total cost: workers. In addition, the project will assist in $18.4 million. identifying the country's need for business CENTRAL AFRICAN REPUBLIC: education and training. Total cost: $53.2 IDA-$900,000. Supplementary financing is million. being provided for the completion of an LESOTHO: IDA $10 million. Some 150 education project, approved in fiscal 1972. primary-school classrooms will be (The original credit was for $3.9 million.) constructed, 1.9 million textbooks and CHINA: Bank $100 million; IDA-$100 workbooks will be provided, and permanent million. The initial phase of a program to facilities for trainees at two vocational strengthen higher education and research training centers will be built. Total cost: activities in science and engineering will be $13.1 million. supported by this first Bank operation in the MALAWI: IDA-$41 million. Through the country. Civil works, furniture, equipment, building and furnishing of five new secondary the services of specialists, and fellowships will schools and the expansion of six existing be financed to help increase the number of schools and through the provision of similar graduates and the volume of research work facilities for a training college for teachers, at twenty-six leading universities; improve secondary education will be expanded and the quality of graduates and research work; improved. About 47 percent of the secondary and strengthen management at universities school places will be made available to girls, and in the Ministry of Education. Total cost: thus providing better educational and $295 million. employment opportunities for women. EGYPT. ARAB REPUBLIC OF: IDA-$40.1 Technical assistance is included. Total cost: million. Financial and technical assistance $51.3 million. will be provided to twenty-five new and NIGER: IDA-$21.5 million. This project thirty-five existing vocational, agricultural, comprises a five-year program to improve the and handicrafts training centers to alleviate planning and preparation of education acute shortages of skilled manpower in the projects and planning for civil service agricultural and industrial sectors, thereby upgrading and training of rural development improving the employment prospects of the workers. Cofinancing ($2.5 million) is being urban poor, increasing agricultural provided by the UNDP. Total cost: $27 productivity and rural incomes, improving million. health services, and upgrading secondary and PAKISTAN: IDA $25 million. Vocational university teaching skills. Total cost: $56.9 training will be expanded in order to produce million. the skilled manpower needed for industrial ETHIOPIA: IDA-$35 million. This three- development and to overcome shortages year phase of the government's plan to caused by the emigration of skilled workers. provide primary education to all within a Construction, furniture, and equipment for decade includes the construction of primary the National Training Development Institute and secondary schools, the strengthening of and six new training centers are included, as the Ministry of Education's capacity to are the rehabilitation of existing centers, coordinate project activities, and the training materials, and salary increments and establishment of a school of veterinary training for staff. Cofinancing ($1.6 million) medicine and several district centers to is being provided by the lNDP. Total cost: provide in-service training for teachers and $47.3 million. Energy 109 PAPUA NEW GUINEA: Bank-$6 million; materials, better training facilities for IDA-$12 million. Through the provision of teachers, and fellowships. Cofinancing ($20 in-service training for 430 teachers, million) is being provided by DANIDA. administrative staff development, and Total cost: $55 million. educational materials to 150,000 children TUNISIA: Bank--$26 million. To help meet and through the improvement and expansion the need for skilled workers, craftsmen, and of physical facilities, the management of supervisors, seven new vocational centers will educational resources will be improved and be built and furnished, thirty new sections primary education will be upgraded and will be added to existing centers, five centers expanded in the provinces. Total cost: $37.7 will be re-equipped, and technical assistance million. will be provided to help establish a long-term PARAGUAY: Bank-$17 million. About strategy for the development of vocational 80,000 rural students will benefit from the training and apprenticeships. Total cost: $47 construction and equipping of about 500 million. schools, the establishment of better in-service training programs for teachers, evaluation Energy and revision of curricula for primary and ARGENTINA: Bank-$10 million. Financing secondarv education, and the upgrading of of a drilling program, seismic surveys. staff and facilities in the departments of geological reconnaissance, and prefeasibi]ity planning and personnel of the Ministry of studies will enable evaluation of coal reserves Education. Total cost: $30.23 million. in the Austral basin, and the government will PHILIPPINES: Bank-$100 million. To be able to establish investment priorities for strengthen policies, management, and the long-term development of the country's instructional programs in elementary eng-tor. Totah co untry's education, some sixty subprojects will be energy sector. Total cost: $20 mllion. undertaken during the next three years. BANGLADESH: IDA-$85 million. The Educational materials, buildings, equipment, country will be assisted in reducing its training for managers, planners, and school dependence on imported oil in the course of a staff, and a revised curriculum are included. three-year period through the replacement of Total cost: $448.1 million. liquid hydrocarbons with indigenous natural SOMALIA: IDA-$10.2 million. The project gas. Gas to use as a feedstock for production covers a five-year program designed to of fertilizer will also be made available, improve the quality and efficiency of thereby making possible substantial savings teaching in primary and secondary schools by in foreign exchange. The project includes the upgrading teacher-training facilities and drilling of wells, facilities for the gathering, providing more equitable opportunities for transmission, and distribution of gas, and secondary education in rural areas. Technical technical assistance. Cofinancing is being assistance for the long-term planning of provided by the OECF ($26 million) and the manpower requirements and a review of the OPEC Fund for International Development civil-service system are included. Total cost: ($21 million). Total cost: $164 million. $12.7 million. BARBADOS: Bank-$6 million. To help meet SYRIAN ARAB REPUBLIC: Bank-$15.6 the country's needs for electricity through million. The government will be assisted in 1984, the existing generation, transmission, expanding vocational and technical training and distribution systems will be expanded, for the agriculture, construction, and health plant efficiency and the institutional sectors; extending current programs that capability of the Barbados Light and Power offer health services to school children; Company Limited will be improved, and an improving the quality of primary and energy-conservation program will be secondary education; and studying ways of undertaken. Cofinancing will be provided by upgrading management skills in the public the CDC ($11.7 million), the EIB ($7.1 sector. Cofinancing ($2.7 million) is being million), and the CDB ($6 million). Total provided by the UNDP. Total cost: $48.1 cost: $121.7 million. million. BRAZIL: Bank-$125 million. Through the TANZANIA: IDA-$25 million. Primary and construction of transmission lines, secondary education will be made available substations, and auxiliary facilities and the to students from remote areas of the country provision of the services and training of (about 24,000 new places), local school consultants, the Centrais Eletricas do Sul do buildings will be constructed in some 2,000 Brasil S.A. will be able to expand its high- villages, and the quality of education will be voltage transmission system in the states of improved through the provision of teaching Parana, Santa Catarina, and Rio Grande do 110 ProJects Approved, Bank and IDA, by Sector Sul during the period 1980-84. Total cost: management and operations of the Societe $265.31 million. Nationale d'Electricite. A training program, BRAZIL: Bank-$54 million. A part of a technical assistance, and consulting services national program for the supervision and are included, as are the rehabilitation of the coordination of the country's interconnected power distribution network and construction electric power systems, the project consists of of related facilities. Total cost: $32.5 million. the provision of components for the system GUINEA-BISSAU: IDA-$6.8 million. that are at an advanced stage of preparation, Technical assistance will be provided to the including training and the construction of National Corporation for Petroleum and facilities. Total cost: $140.3 million. Mineral Research and Exploration for COLOMBIA: Bank $359 million. A 1,000- gathering and evaluating geological and megawatt hydroelectric plant, the largest yet geophysical data, negotiating exploration to be constructed in the country, will provide contracts with oil companies, and devising an about 15 percent of the country's need for accounting system for the petroleum industry electricity by 1988. An environmental- and a system for monitoring the accounts of protection study and a training program for oil companies. Total cost:_$6.9 million. the staff of the Empresa de Energia Electrica GUYANA: Bank $8 million. A power- de Bogota are included. Cofinancing ($100 demand study, prefeasibility and feasibility million) is being provided by the IDB. Total studies of various hydropower sites, and cost: $1,303 million. engineering studies will assist the country in COLOMBIA: Bank-$85 million. A 65-meter meeting its future power requirements earth-fill dam and spillway, a 200-megawatt through the development of renewable underground power station, a substation, sources of energy that will substitute for transmission lines, and related works will be imported oil. Technical assistance is being built in order to help meet the increasing provided the Guyana Electricity Corporation demand for power in Medellin and its to improve its management. Total cost: $10.4 surrounding areas and to expand the supply million. of electricity in rural areas of Antioquia and INDIA: Bank-$400 million. The development in the North Atlantic region, which are now of the southern and central areas of the entirely dependent on thermal generation. Bombay High offshore oil field will be Cofinancing ($85 million) is being provided continued by drilling sixty-four wells and by the IDB. Total cost: $364.4 million. constructing fifteen production platforms, a COLOMBIA: Bank-$36 million. The project processing platform, and a platform for living represents the first stage of a fifteen-year quarters. The production potential is rural electrification program to bring expected to reach 12 million tons of crude oil electricity to more than 43,000 rural a year by mid 1982. Cofinancing ($30 households and to agroindustries in the million) is being provided by the OPEC Fund country's poorest region. Total cost: $68.7 for International Development. Total cost: million. $858.2 million. COSTA RICA: Bank-$3 million. The project INDONESIA: Bank-$250 million. A 700- will support the efforts of the government to megawatt hydroelectric power facility and evaluate and explore its petroleum resources related works will be built in Java to help and analyze future choices in the energy meet the island's growing demand for sector by conducting seismic surveys and electricity and reduce domestic consumption geological studies and by providing the of oil. Services of consultants to assist the services of consultants to help develop a national electricity authority in carrying out national energy data base and prepare a power-market surveys, analyses of power national energy plan. Total cost: $3.9 million. systems, and management of civil works EGYPT, ARAB REPUBLIC OF: Bank-$25 contracts are included. Cofinancing ($136.6 million. Seismic surveys, exploratory drilling, million) is being provided by the OECF. and extensive testing and data processing in Total cost: $726.7 million. the western desert will be financed to assist IVORY COAST: Bank $33 million. Some the country in developing petroleum 315,000 people will benefit from a project resources to meet the increasing demand for that forms part of the country's 1981-84 oil and natural gas. Technical assistance is rural electrification program, the aim of included. Total cost: $40 million. which is to extend power to forty-three small GUINEA: IDA-$28.5 million. The project is towns that are today supplied with electricity part of a program to rehabilitate and expand by diesel stations, to 633 towns that now power facilities in Conakry and the have no electricity, and to new and existing surrounding areas and to strengthen the agroindustries. Total cost: $46.5 million. Energy 111 JAMAICA: Bank $7.5 million. The project plants, seventeen thermal power and heat- will enable the Petroleum Corporation of generation plants, twenty-seven transmission Jamaica to participate as an equity partner substations, six thermal generation plants, in offshore hydrocarbon exploration. In and 1,569 kilometers of transmission lines addition, seismic surveys, technical will be built. An expansion of the existing assistance, and a feasibility study are distribution systems will be financed as well. included. Total cost: $8.4 million. Total cost: $3,011.5 million. JORDAN: Bank-$25 million. The project is SWAZILAND: Bank-$10 million. A twenty- part of the 1981-84 program to provide megawatt hydroelectric generating facility adequate facilities for transmission and will be built on the Little Usutu river as a distribution of power to five municipal and first step in a program designed to meet the industrial centers, as well as to about fifty country's demands for power during the next villages and three low-cost housing areas, fifty years and to help reduce its dependence thereby benefiting some 51,000 people. on imports of electricity. Cofinancing is being Cofinancing ($18 million) is being provided provided by the EIB ($8.8 million), the by the KFAED. Total cost: $81.12 million. AfDB ($8.2 million), the KfW ($8.1 LIBERIA: Bank-$5 million. Offshore seismic million), and the CDC ($7.6 million). Total surveys will be conducted to help determine cost: $59.2 million. oil reserves, consulting services for the THAILAND: Bank-$100 million. Funds will negotiation of new exploration permits will be provided the Electricity Generating be made available, and technical assistance Authority of Thailand to help finance its will be provided in order to improve planning expenditures for selected subprojects during in the energy sector and attract foreign the next three years. A program of energy investment in oil exploration. Total cost: $6 conservation and an environmental training million. program are included. Cofinancing is being MALI: IDA-$3.7 million. Technical provided by the AsDB ($133 million), the assistance will be provided to the government OECF ($89.8 million), and the KFAED ($20 to help evaluate the hydrocarbon potential of million). Total cost: $1,621.4 million. the Taoudeni basin and to strengthen TUNISIA: Bank $41.5 million. Electric institutional capabilities for energy planning. service will be extended, for the first time, to Total cost: $4 million. more than be people firal areas PANAMA: Bank-$6.5 million. The more than 30,000 people iving in rural areas government will be assisted in accelerating and 2,100 pumping stations and 300 oil exploration, improving energy planning, commerclal and small industrial consumers and investigating the potential for will also receive these services, and the development of alternative sources of energy quality of service will be improved for in an effort to attract investments in the 150,000 existing urban consumers. Total cost: energy sector by oil companies. Total cost: $8 $89.6 million. million. TURKEY: Bank-$62 million. The PERU: Bank-$25 million. Prefeasibility project-including the testing of improved studies, feasibility studies, bidding techniques of oil recovery in a large documents, and final designs will be prepared producing oil field, the drilling of new wells for twelve hydroelectric projects, a proposed and installation of associated equipment in a project that will provide power and irrigation, newly discovered oil field, evaluation of the a power-transmission line to serve the production potential of a gas field, and northern part of the country, and a thermal- technical assistance to the Turkish Petroleum generating plant for Lima. Technical Company-will expand recoverable oil assistance is included. Total cost: $40.7 reserves in operating fields and increase million. short-term production of crude oil in new PORTUGAL: Bank-$20 million. The country fields. Total cost: $102 million. will be assisted in evaluating its petroleum TURKEY: Bank-$25 million. To accelerate and heavy oil prospects through seismic the exploration and development of the surveys, exploratory drilling, laboratory country's petroleum potential and attract analysis services, and the provision of investments in the sector by foreign oil technical assistance to the Petroleos de companies, geological studies and seismic Portugal to strengthen its technical geophysical surveys will be undertaken, capabilities. Total cost: $26 million. exploratory drilling will be financed, ROMANIA: Bank-$125 million. As part of technical assistance and training will be the country's 1980-85 power expansion provided, and a program of energy audits program, thirty-one hydroelectric generation will help identify the areas with strong 112 Projects Approved, Bcnk cnd DA, by Sector potential for efficiency and conservation of Siderurgica del Perti, a state-owned steel energy. Total cost: $45 million. company, to enable it to install and manage YEMEN ARAB REPUBLIC: IDA-$12 a two-stage 400,000 metric-tons-a-year million. The project-including the extension expansion of an important steel mill. Total of electricity to about seventeen villages and cost: $6 million. to three principal farmers' markets SENEGAL: Bank-$19.3 million. The safest represents the first phase of the country's and most economical solution for eighteen-year national electrification transporting raw materials, supplies, and program, the aim of which is to extend products to a major fertilizer plant will be electric service throughout the country. An provided through the upgrading, renewal, and energy-pricing study and an electricity-tariff construction of railway track, the study will also be financed. Cofinancing is procurement of locomotives, spare parts, and being provided by the KfW ($4 million) and equipment, and the construction and the NMDC ($4 million). Total cost: $21.5 equipping of a maintenance workshop. Total million. cost: $23.4 million. Industry THAILAND: Bank-$8.9 million. A feasibility study, including trial mining operations, will BRAZIL: Bank-$250 million. This three-year be executed in order to determine the phase of the government's 1981-85 National feasibility of developing a potash project in Alcohol Program is designed to increase the country. Financial and legal assistance annual production of alcohol for use in will be provided to assist the government in gasoline and chemical feedstocks to about negotiating with private investors in the 10.7 billion liters by the end of 1985 sector, and the formulation of potash- (equivalent to 148,000 barrels a day of development policies will be supported. Total petroleum). Total cost: $5,115 million. cost: $10.4 million. BURUNDI: IDA-$4 million. The aim of the TOGO: IDA $5.7 million. A feasibility study project which includes nickel exploration, and related geological, engineering, and trial peat production, engineering studies, infrastructural studies will be undertaken in and technical assistance-is to analyze the order to evaluate the country's phosphate data needed to establish an economically and deposits and determine the technical and financially sound project for developing the economic feasibility of developing a nickel deposits at Musongati. Cofinancing is phosphate fertilizer project that would being provided by FINNIDA ($1.8 million) support the manufacture of phosphoric acid and DANIDA ($900,000). Total cost: $7.3 and fertilizers for export. Total cost: $8.9 million. million. EGYPT, ARAB REPUBLIC OF: Bank-$64 TUNISIA: Bank-$18.6 million. The project is million. The HADISOLB steelmaking the first phase of a program to rehabilitate facilities-the country's largest producer of the country's textile industry by expanding steel-will be rehabilitated by providing and improving production at the largest equipment and computer facilities to help operating company in the country and by remove technical bottlenecks in production completing preparatory work for the and by making substantial improvements in rehabilitation of three other large companies. operation and maintenance practices. Total Technical assistance is included. Cofinancing cost: $105.6 million. ($1.5 million) is being provided by INDIA: IDA-$400 million. It is estimated Switzerland. Total cost: $32.9 million. that the construction of a fertilizer plant in TURKEY: Bank-$I 10 million. The provision Gujarat state that will produce 2,700 tons of of finance for rehabilitation and ammonia and 4,400 tons of urea a day will rationalization investments in three cause foreign-exchange savings from reduced companies and four plants in the fertilizer imports of fertilizer to increase to more than industry and the training of staff, fulfillment $3,440 million during the next twelve years. of a marketing studv, provision of technical Cofinancing is being provided by the ODA assistance, and improvement of plant ($104.5 million) and the OECF ($98.7 operations and management will make it million). Total cost: $1,276.9 million. possible to increase production of fertilizer PERU: Bank--$5 million. Technical and allow the plants to become more energy- assistance including assistance with project efficient. Total cost: $236.6 million. management and operating practices, training of personnel, and the preparation of Nonproject a feasibility study and other related BANGLADESH: IDA-$65 million. Foreign studies-will be provided to the Empresa exchange will be provided for the import of Nonoroject 113 raw materials, components, and equipment to with a view to improving their production enable the industrial, construction, and capacity. agriculture sectors to reach their full PHILIPPINES: Bank $200 million. A production potential. Government programs structural-adjustment loan will support the to increase the production and equity of implementation of a comprehensive program distribution of food grains and thereby of industrial development designed to improve the country's general economic accelerate industrial growth, expand condition will also be supported. employment, maintain the rapid growth of FIJI: Bank-$18 million. A thirty-two- nontraditional exports, and stimulate industry kilometer section of highway and drainage outside the metropolitan area of Manila. works that was damaged during the cyclone Proceeds of the loan will be used to finance of April 1980 will be reconstructed. the acquisition of industrial raw materials, Technical assistance is included. The UNDP intermediate and investment goods, and spare is providing grant funds for technical parts, in addition to technical assistance for assistance. Total cost: $31 million. implementation of the program. GUYANA: Bank-$14 million; IDA-$8 SENEGAL: Bank-S30 million; IDA-$30 million. Structural-adjustment assistance will million. Structural-adjustment assistance, to help stimulate economic growth in the be disbursed in two tranches, will support the country and restore balance-of-payments government in its efforts to carry out its equilibrium by providing foreign exchange program of economic stabilization and for critically needed inputs to industrial and rehabilitation for the medium term, agricultural operations in both the public and concentrating on four principal areas: money private sectors. and finance, prices and incentives, investment MALAWI: Bank-S45 million. A structural- programs, and agricultural policies. adjutmet lon, o bedisurse intwoTANZANIA: IDA-$50 million. Funds will be adjustment loan, to be disbursed in two provided to cover the costs of essential tranches, is designed to diversify the imports of agricultural machinery and country's export base, encourage efficient materials and spare parts for vehicles so as to importsition, adjust incian improve the production and marketing of Income policies, Improve the financial principal export crops and food crops. performance of the pubic sector, and TURKEY: Bank-$300 million. This second strengthen the economic planning and structural-adjustment loan will give further monitoring capability of the government, support to the countrv's January 1980 MAURITIUS: Bank-$15 million. A stabilization program and will help restore structural-adjustment loan will provide funds economic viability. Finance will be provided through the Bank of Mauritius to finance the for high-priority imports, such as fertilizer import of essential goods mainly for the raw materials and intermediate products for industrial and agricultural sectors. The loan agriculture and industry. provides balance-of-payments support while TURKEY: Bank-$75 million. This the government implements an adjustment supplement to the first structural-adjustment program whose main aims include developing loan will provide support for a program of export earnings, increasing the economic economic measures that the government return from the public sector investment plans to carry out to restore the viability of program, and improving efficiency in key the economy. Measures include the areas of public expenditure. promotion of exports, efforts to improve NICARAGUA: IDA $5 million. Funds will mobilization of domestic resources, be provided to the Financiera de Preinversi6n formulation and pursuit of rational public for relending for the services of consultants investment policies, and better management to help identify and prepare high-priority of external debt. Foreign exchange is being investment projects in key productive and made available to finance high-priority social sectors. Technical assistance is imports for agriculture and industry. included. Total cost: $6.2 million. ZIMBABWE: Bank-$50 million; IDA-$15 PAKISTAN: IDA-$50 million. To help meet million. High-priority import requirements the demand for fertilizer, support various for raw materials, spare parts, and equipment agricultural policy reforms, and thereby for the manufacturing sector will be financed increase agricultural output, imports of to increase the production of manufactured fertilizer will be financed and the services of goods, increase exports, and provide more consultants provided to review staffing and employment opportunities. Cofinancing ($10 organization of the larger fertilizer million) is being provided by the OPEC Fund manufacturing plants in the public sector for International Development. 114 Projects Approved, Bank ard IDA, by Sector ZIMBABWE: Bank-$42 million. Funds will goods, support export promotion of selected be provided to help meet high-priority import handicrafts, and initiate project development requirements of spare parts. track- activities in Baluchistan. Total cost: $60 maintenance equipment, and tools for the million. railways. Technical assistance is included. SENEGAL: Bank-$6.5 million; IDA $2.5 Population Health andNumillion. Funds will be provided to the Societe Population, Health, and Nutrition F.acir ..&aliepor Financiere S6negalaise pour le TUNISIA: Bank-$12.5 million. The project Developpement de l'Industrie et du Tourisme supports the efforts of the government to (SOFISEDIT) and the Soci6te Nationale extend basic health care to the entire d'Etudes et de Promotion Industrielle population by 1990 by providing family- (SONEPI) to finance investments in planning, nutrition, and health services to industrial, fisheries, and tourism projects and about 2.25 million low-income residents and to improve the promotion of small and by strengthening the management capacity of medium-scale enterprises. Total cost: $17.9 the Ministry of Public Health. Total cost: million. $41 million. TUNISIA: Bank-$30 million. The Small-Scale Enterprises government program to assist small industries will be supported in an effort to BANGLADESH: IDA $35 million. A third help them reach their potential in generating small-scale industry project will help increase employment, improving intersectoral productivity, employment, and exports of linkages, developing industrial managers and cottage industries and other small industries technicians, and alleviating regional by providing both financial assistance and imbalances. Cofinancing ($900,000) is being technical and marketing services to small provided by the UNDP. Total cost: $60.55 industries and transport operations, exporters million. and manufacturers of handicrafts and light industrial products, and agricultural Technical Assistance enterprises. Total cost: $50 million. CAMEROON: Bank-$15 million. Technical BANGLADESH: IDA-$16 million. Technical and financial assistance will be provided to assistance will be provided to help strengthen artisans and to small and medium-scale the government institutions that are enterprises during a four-year period to responsible for identification, preparation, promote industrial growth and encourage a and implementation of projects and to better geographical distribution of industrial develop a pipeline of projects suitable for activities in the country. About 1,800 financing. permanent jobs will be created. Total cost: CAMEROON: IDA-$10 million. A second $21.3 million. technical-assistance project will support INDONESIA: Bank-$106 million. About improvements in the organization and 70,000 subloans will be extended through operation of the present systems of national Bank Indonesia to small-scale enterprises planning and management of external debt, (SSEs) in several sectors, creating some help define policies and investment programs 140,000 new jobs. Funds will also be in key sectors, and generate sound projects provided to the Ministrv of Industry for and improve project management. Total cost: strengthening technical support services to $13.8 million. SSEs. Total cost: $605.3 million. CENTRAL AFRICAN REPUBLIC: IDA-$4 LIBERIA: IDA-$4 million. Funds will be million. Technical assistance will be provided provided through the National Bank of for project preparation, sector studies, and a Liberia to finance small and medium-scale review of the civil service, and funds will be enterprises (SMEs) and to make technical made available to pay for vehicles, resident assistance available to the National advisers, and further studies to help improve Investment Commission to promote and assist the capacity of the country to finance the development of SMEs. Total cost: $5 development projects and to stimulate private million. investment in key sectors of the economy. PAKISTAN: IDA-$30 million. A line of Total cost: $4.2 million. credit will be onlent through the Industrial EGYPT, ARAB REPUBLIC OF: IDA-$6.9 Development Bank of Pakistan for the million. Technical assistance will be provided refinancing of subloans by five commercial for preinvestment planning, feasibility and banks for the development of small-scale engineering studies, and related work toward industries and to provide extension services to the creation of permanent institutional enterprises in woodworking and leather capabilities for sector planning and project Telecommun cations 115 preparation in the agricultural ministry. Total output, as well as studies to identify potential cost: $9.4 million. export products and markets and develop a GUYANA: Bank---$1.5 million. To support more export-oriented industrial sector. related financing for structural adjustment, Training to upgrade accounting and auditing technical assistance will be made available to skills is also included. Total cost: $14 million. establish an export development fund, to UGANDA: IDA-$8 million. Technical carry out export-market studies, to provide assistance will be provided to help the advisory services in industrial development government prepare a series of rehabilitation and export promotion, and to strengthen the and development projects suitable for outside monitoring of the investment program of the financing. Prefeasibility, feasibility, and other public sector and improve systems of studies are included, as are support to local expenditure control. Total cost: $2 million. agencies and training for project planning MADAGASCAR: IDA-$] 1.5 million. The and preparation. project will assist the government in ZAIRE: IDA-$2.9 million. Technical establishing an appropriate instructional assistance will be provided to establish a program to provide qualified professionals in subregional development authority to provide accounting and auditing, to provide industrial the institutional framework needed for the management consulting and audit services, implementation of a long-term agricultural and to create a suitable legislative framework development program designed to increase for the sector. Total cost: $14.2 million. production of food crops, livestock, and fish. MAIAWI: Bank--$1 million. For a period of Cofinancing ($1 million) is being provided by thirty months, a technical-assistance project the GTZ. Total cost: $5.9 million. will provide the services of consultants to Telecommunications study the livestock, meat, and dairy industries, to review the financial position of BURUNDI: IDA-$7.7 million. the Malawi Development Corporation and Telecommunication services will be expanded strengthen its export-marketing capabilities, through 1984 by means of an improvement and to undertake studies that are needed in in the long-distance transmission networks in support of a related structural-adjustment Bujumbura and various provincial towns and loan. Total cost: $1.17 million. by extending coverage to about forty villages NIGERIA: Bank-$47 million. Technical through the installation of public call offices. assistance will be provided to help establish Technical assistance and training and an administrative structure and organization vehicles, tools, and related equipment will be that can coordinate the development and provided. Total cost: $9.1 million. implementation of the government's food- INDIA: IDA-$314 million. Through the production plan developed in an effort to ease provision of additional direct-exchange lines, the country's serious food shortage. Total public call offices, telex facilities, and related cost: $120.1 million. equipment and by upgrading and SENEGAL: IDA-$5.3 million. Technical modernizing the production facilities of three assistance will be made available to support major manufacturers of telecommunications and strengthen the ability of the government equipment, the country's telecommunications to identify, select, prepare, monitor execution network will be expanded in four of, and evaluate in retrospect its portfolio of metropolitan areas and extended to about 40 development projects and to improve the million people living in small towns and monitoring of public finance. Total cost: $6.2 villages who have never had access to public million. telephones. Total cost: $1,619.4 million. SUDAN: IDA-$6 million. This project will RWANDA: IDA-$7.5 million. Expansion of support a three-year program designed to the urban cable network in several towns, by improve the ability of the government to installation of a new exchange at implement its current strategy of economic Rwamagana and replacement of ten existing stabilization by providing technical assistance exchanges, and expansion of the telex in the areas of project preparation, project exchange at Kigali will reduce the implementation, and macroeconomic geographical isolation of the country from management. Total cost: $6.8 million. other African countries, improve the internal TANZANIA: IDA-$I I million. Technical telecommunications network, and extend assistance will be provided to identify, plan, service to several additional rural and urban and implement projects in areas where there areas for the first time. Cofinancing is being is little expertise in the country. Special provided by the FAC ($1.95 million), the studies will be undertaken to improve the use CCCE ($1.95 million), and CIDA ($4 of production facilities in order to increase million). Total cost: $17.5 million. 116 Projects Approved, Bark arc DA, by Sector Transportation CENTRAL AFRICAN REPUBLIC: ALGERIA: Bank-$I]10 million. To reduce IDA-$4.5 million. Supplementary financing transport costs and increase access to rural Third Hi ghwav Projecth, cmppletdon of the areas, the foreign-exchange costs of road- 1979. (The original credit was for $15.s maintenance equipment, the training of 11 maintenance personnel, the reconstruction of million.) a seven-kilometer section of a national road, CHILE: Bank-$42 milliorn.. About 250 kilometers of badly deteriorated sections of Total cost: $206.3 million. the country's only continuous north-south BANGLADESH: IDA $25 million. trunk road will be reconstructed. Some Improvement of the landing and storage 950,000 people, most of them rural and urban poor, will benefit directly from better facilities at river ports and channel dredging access to markets and lower vehicle-operating at Chittagong and rehabilitation of railroad costs. Total cost: $91.7 million. wagons, construction of transit-storage COLOMBIA: Bank-$33 million. To reduce facilities, and establishment of a control center for fertilizer operations will make transport costs and improve the access of the fertilizer more readily available to farmers, rural population to markets. schools, and redue tlhe morie, reandl enhance rop farmershealth facilities, more than i,400 kilometers reduce the price, and enhance cropofralodswlbecntuedr production. Total cost: $40.8 million. of rural roads will be constructed or BENIN: IDA $11.3 million. About 400,000 rehabilitated and tools and spare parts will people are expected to benefit from a fourth be provided for maintenance purposes. highway project that includes rehabilitation Technical assistance is included. Total cost: and maintenance of roads, improvement GHANA: IDA-$29 million. Through the management of the Directorate of Roads mAiNAn of tc,eili. Tatongo and Bridges, staff training, and the macmtenance of tracks, rehabolktatdon of institution of axle-load control and road- g safety programs. Cofinancing ($6 million) is telecommunipcationsfaipotis, mrovement of being provided bv the OPEC Fund for . . . International Development. Total cost: $20.3 assistance, and staff trainng, the million. management, operations, and facilities of the BENIN: IDA $7 million. A three-year Ghana Railway Corporation will be improved. Cofinancing ($13 million) is being program of feeder-road construction and provided by the AfDB. Total cost: $64 maintenance will be financed to enable y . farmers to have vear-round access to markets million. HAITI: IDA-$I I million. Rehabilitation and and to reduce overall vehicle-operating costs. expansion of the international port at Cap BOTSWANA: Bank-517 million. Paving of Haitien and the building of five new coastal the north-south road to the Zimbabwe border shipping ports and the rehabilitation of two will be completed, and three other roads will others are expected to increase earnings from be improved to two-lane bituminous foreign cruise ships and give better access to be ~ ~ . imroe to twolated bituminoustG ha ae o standards. In addition, a soils-and-materials isolated seacoast communities that are not laboratory and road-maintenance depots will now connected by roads to the rest of the be built and consulting services and two country. Cofinvancing (6 million) is being instructors will be provided to complete the provided b. the KfW. To.al cost: $23.7 staffing of the Roads Training Center. Total million. HONDURAS: Bank----S28 million. About 350 cost: $23 million.kioeesofedrraswlbeultn BURUNDI: IDA-$25 million. A third seklcted agricultural vallesll be built in highway project will help improve of secondarg roads servir;g rural areas will communications and reduce the costs of g . ' operating vehicles between Bujumbura and be improved; maintenance and workshop the regions of Ngozi and Muyinga; a better equapment and spare parn s will be purchased; transport connection to the Indian Ocean will maintenance managemene aind be provided for be created; and the road-improvement costenance man. capability of the Ministry of Public Works cost: $40.8 million. INDIA: IDA-S-35 million. About 2 million will be strengthened. Cofinancing is being a expecte tone f the providd by he OEC ($2 illion, thepeople are expected to bene ........... from the provided by the OECF ($2 million), the construction and rehabilitation of 700 AGCD ($1 million), the UNDP ($500,000), kilometers of rural roads ;o Bihar state and and France ($300,000). Total cost: $35 from improved road maintenance that will million. Transportation 117 permit all-weather transport between farms industries with access to international and markets and facilitate rural development. maritime transport. Total cost: $24 million. Total cost: $52.9 million. PANAMA: Bank-$19 million. During a four- IVORY COAST: Bank-$100 million. Part of year period, some 400 kilometers of paved the foreign-exchange costs of the 1981-83 roads and 50 kilometers of gravel roads will highway investment program will be be rehabilitated; a road-maintenance financed, including road construction and program will be established; and technical rehabilitation of roads, the purchase of road assistance will be provided to the Ministry of and laboratory equipment, and technical Planning and Economic Policy to strengthen assistance and training for various transport planning. Total cost: $31.7 million. directorates of the Ministry of Public PERU: Bank-$58 million. To increase the Works.Total cost: $166 million. efficiency and security of civil aviation and KENYA: Bank-$58 million. To increase the improve service to the eastern jungle and efficiency and reliability of the Kenya jungle highland regions, one airport will be Railways Corporation and to expand the use built, three others will be improved, and of rail transport, the purchase of essential communications, navigation, and aviation track rehabilitation equipment and equipment will be provided throughout the improvements in operation will be financed. country. Technical assistance is included. Cofinancing is being provided by the KfW Cofinancing ($19 million) is being provided ($16.7 million) and the AfDB ($7.5 million). by the KfW. Total cost: $127.6 million. Total cost: $133.8 million. SIERRA LEONE: IDA-$10 million. MALAWI: IDA-$33 million. During a five- Equipment, spare parts, technical assistance, year period, large sections of the country's and training will be provided to strengthen principal north-south road will be constructed and improve the efficiency of the country's or improved in order to achieve a more road-maintenance organization, to reduce balanced distribution of resources between transportation costs, and to increase the the rural and urban areas, particularly the accessibility of remote agricultural areas. less-developed northern region. Consulting Cofinancing is being provided by the ADF services and training are included. Total cost: ($8.2 million) and the OPEC Fund for $39.2 million. International Development ($7 million). Total MALI: IDA-$17 million. To prevent the cost: $29 million. deterioration of the country's road- SRI LANKA: IDA-$13.5 million. To increase maintenance capability, a two-and-a-half the supply of trained manpower and improve year program of routine maintenance the level of technical management expertise covering more than 6,000 kilometers of in the construction industry, training will be national, regional, and feeder roads will be provided to about 45,000 unskilled workers, undertaken. Periodic maintenance of about 9,600 skilled workers, 1,800 mechanical 900 kilometers of paved and gravel roads and equipment operators, and 1,000 supervisors a program of axle-load control will also be and managers. Equipment and technical undertaken. Technical assistance is included. assistance are included. Total cost: $25 Cofinancing ($10 million) is being provided million. by the SDC. Total cost: $43.3 million. THAILAND: Bank-$53 million. Development MEXICO: Bank-$150 million. The of the inland waterways and coastal ports project-including rehabilitation of tracks, that serve the country's north and central the provision of machinery, equipment, corridor will provide about II million people locomotives, and freight cars, and the with cheaper transportation for the export of installation of a central traffic-control rice and corn and for imports, such as system-has the aim of enabling the petroleum products. Total cost: $80.4 million. National Mexican Railways to meet the THAILAND: Bank-$47 million. Port increasing demand for railway transport. facilities at Bangkok and Sattahip will be Cofinancing ($94 million) is being provided improved and expanded through the by the U.S. Export-Import Bank. Total cost: construction of freight stations and $1,527 million. warehouses, procurement of necessary MEXICO: Bank-$14 million. The services of mechanical equipment, and civil works. Total consultants will be provided for the planning, cost: $109.2 million. study, and design of industrial development TOGO: IDA-$20 million. A fourth highway at five principal ports in order to decentralize project includes a three-year training economic activity and growth to areas outside program for road-maintenance personnel, the the central plateau and to provide local procurement of equipment and spare parts, 118 Projects Approved, Bank and IDA, by Sector preinvestment studies, and technical INDONESIA: Bank-$43 million. Basic assistance to improve transport planning and infrastructure-including water supply, railway operations. Cofinancing ($7.4 sanitation, roads, footpaths, schools, and million) is being provided by the OPEC Fund health facilities-will be provided to about for International Development. Total cost: 800,000 people who live in low-income areas $31.2 million. of nine cities, and training equipment and UPPER VOLTA: IDA $46 million. During a materials will be made available to more four-year period, more than 6,000 kilometers than 400 community health workers. of paved and gravel roads will be Technical assistance and consulting services rehabilitated and maintained and about are included. Total cost: $86.1 million. 1,640 kilometers of feeder roads will be JORDAN: Bank $21 million. This first Bank- constructed and maintained to provide better assisted urban development project in the access to rural areas. Technical assistance is country includes a provision for housing on included. Cofinancing ($8 million) is being seven sites in the Amman region for 41,000 provided by the NMDC. Total cost: $73 low-income residents and, in addition, million. community facilities, maintenance YEMEN, PFOPLE'S DEMOCRATIC equipment, assistance to small businesses, REPUBLIC OF: IDA $12.5 million. To manpower training, and services of promote the social, economic, and consultants for project management, administrative integration of the country, a supervision, and related studies. Total cost: ninety-two-kilometer, two-lane paved road $57.6 million. will be constructed that will improve access KOREA, REPUBLIC OF: Bank-$90 million. to three towns in the isolated Shabwah About 380 hectares of urban residential land governorate. Cofinancing is being provided in ten cities will be developed, including the by the KFAED ($10.5 million) and the construction of 8,500 housing units and OPEC Fund for International Development communit and commercial facilities for low- ($10.5 million). Total cost: $42.8 million. income households and technical assistance YUGOSLAVIA: Bank-$34 million. The for staff training, professional services, and three-year project-including reconstruction project preparation. Total cost: $240 million. of an important junction, installation of MAURITIUS: Bank-$15 million. Funds will modern signaling and telecommunicationsMARTU:B k-lmiio.Fnswl modern signaling and teeomnctos be onlent through four local institutions to equipment, procurement of rolling stock and beponlent through fou insin to related equipment, and training and technical support land development for housig and community facilities, housing credit for home assistance-represents one phase of a plan ipoeetadcntuto,rhbltto for improving the capacity and efficiency of improvement and construction rehabilitation the rail network in Kosovo, the weakest part of housing and urban services damaged by of the country's rail system. Total cost: $67.5 cylnes,r and teirem of pubic million, transportation and sewage facilities. million. Cofinancing ($4.5 million) is being provided Urbanization by the SFD. Total cost: $24.5 million. BRAZIL: Bank-$90 million. By strengthening MEXICO: Bank-$164 million. Urban and the Brazilian Urban Transport Company regional development will be supported in through institution building and technical three southeastern states through the assistance and by supporting transport- provision of shelter-related facilities, citywide investment progams and a low-cost paving infrastructure, municipal facilities and program, transport services will be improved services, credits to artisans and small-scale in the low-income areas of several cities. enterprises, industrial estates, and through Total cost: $257 million. various studies and support activities. Total INDIA: IDA-$42 million. A second urban cost: $468 million. development project in Madras includes the MOROCCO: Bank-$36 million. The efforts development of about 15,000 residential and of the government to improve the standards 200 industrial plots on two sites, the of living of some 66,000 low-income residents provision of basic infrastructure and land of the cities of Meknes and Kenitra will be tenure to 50,000 slum households, home supported by upgrading squatter settlements, improvement loans and grants to 80,000 slum constructing serviced residential plots and households, the procurement of 550 buses, community facilities, providing credit for construction and maintenance of roads, and home improvement, providing technical an improvement in management of solid assistance, and financing studies for the wastes. Technical assistance and training are preparation of new urban development included. Total cost: $84 million. projects. Total cost: $81.1 million. Water Supply and Sewerage 119 Water Supply and Sewerage several of the larger towns and smaller BENIN: IDA -$5 million. To help meet the centers will have better access to a safe water water-supply and sanitation needs of supply through a third water-supply project Cotonou----the largest city and economic that includes the construction of water-supply center of the country--master plans will be systems, a revolving fund to finance credit to prepared for water supply and sanitation and low-income households for house connections, urban development, the tariff and accounting a line of credit to the Office National de systems will be reviewed, bidding documents l'Eau Potable to expand water-supply will be prepared, and the water-distribution facilities, and technical assistance and system will be extended by about eighty-two training. Total cost: $169 million. kilometers to low-income areas. Total cost: NEPAL: IDA--$27 million. About 720,000 $6.3 million. people will benefit from a third water-supply BRAZIL: Bank-$180 million. Piped water and sewerage project that is intended to help will be provided to some 2.5 million people meet the government's goal of providing safe and sewerage to 600,000 people living in five water to all the urban population by 1990. states and in the Federal district to help Water-supply and sewerage works initiated improve general health conditions and reduce by two earlier projects will be improved and the incidence of disease. Total cost: $589 expanded, and water-supply systems in six million. additional towns will be upgraded. COSTA RICA: Bank-$26 million. To Cofinancing ($600,000) is being provided bv alleviate water shortages in San Jose and the UNDP. Total cost: $33.3 million. improve services throughout the country, a NICARAGUA: Bank-$3.7 million. Final twenty-seven-kilometer transmission pipe will designs, technical specifications, and contract be constructed, water mains in low-income documents will be prepared for the areas of San Jose %kill be replaced, 30,000 development of a groundwater aquifer near new water meters will be installed, and a Managua to provide the least-cost solution water-supply master plan will be prepared for for meeting that city's needs for water during San Jose and three other cities. Technical the next two decades. Cofinancing assistance is included. Cofinancing ($13.8 ($100,000) is being provided by the IDB. million) is being provided by the CDC. Total Total cost: $5.06 million. cost: $55.3 million. PARAGUAY: Bank $11.8 million. Basic EGYPT. ARAB REPUBLIC OF: IDA-$56.6 water-supply and sanitation services will be million. This project, the aim of which is to provided to some 73,000 people living in expand and rehabilitate water-supply vided to somea73,00 people li n facilities in Beheira, will lend support to the villages in the southeastern part of the government's policy to decentralize country. Technical assistance and traiing responsibility for basic services to the are icluded. Total cost: $20.8 millon. governorates. In addition to improving UGANDA: IDA $9 million. The government supplies for more than the present 2 million will be assisted in completing preparation for consumers, about 800,000 people-including urban water-supply investments in seven 600,000 low-income residents-will be towns so that water and sanitation services provided with safe drinking water. Total cost: can be extended to about 1.5 million people. $1 18.38 million. Feasibility studies, a tariff study, and a MEXICO: Bank--$125 million. Water supply manpower training study will be undertaken will be provided to about 1.2 million people and water meters, vehicles, and staff housing and sewerage to nearly 1.3 million people in will be provided. Total cost: $18 million. several cities through the construction of YEMEN, PEOPLE'S DEMOCRATIC water-distribution networks, sewage- REPUBLIC OF: IDA $3.5 million. The treatment plants, and related facilities. In existing water-supply system of Al Mukalla addition, a technical-assistance program to will be rehabilitated and plans for new water- improve the operation and service capabilities production facilities will be prepared in order of local companies is included. Total cost: to expand the water-distribution network into $318 million. the poorer sections of the city and to help MOROCCO: Bank $87 million. Some 1.6 meet the demand for water through 1984. million people living in low-income areas of Total cost: $4.4 million. 120 Projects Approved for Bank and IDA Assistance in Fiscal 1981, by Region July 1,1980-June 30, 1981 (USS millions) Bank loans IDA credits : Total I Region Country Number 2 Amount Number 2 Amount Number 2 Amount Eastern Africa Botswana ............................ 1 $ 17.0 - $ - 1 $ 17.0 Burundi ............................. - - 4 56.0 4 56.0 Ethiopia ............................. - - 2 75.0 2 75.0 Kenya . ............................. 2 83.0 1 50.0 3 133.0 Lesotho 1............................. - - 10.0 1 10.0 Madagascar . . ........................ - - 4 45.3 4 45.3 Malawi ............................... 2 46.0 2 74.0 4 120.0 Mauritius ............................ 2 30.0 - - 2 30.0 Rwanda ............................. - - 2 22.5 2 22.5 Somalia ............................. - - 1 10.2 1 10.2 Sudan ............................ - - 3 73.0 3 73.0 Swaziland .............. ............. 1 10.0 - - 1 10.0 Tanzania ............................. - - 4 92.8 4 92.8 Uganda ............................. - 2 17.0 2 17.0 Zaire ............................... - - 2 29.3 2 29.3 Zambia ............................. 2 26.0 - - 2 26.0 Zimbabwe ........................... 2 92.0 - 15.0 2 107.0 Total ............................. . 12 S 304.0 28 $ 570.1 40 $ 874.1 Western Africa Benin ............................... - $ - 4 $ 43.3 4 $ 43.3 Cameroon ........................... 2 40.0 1 22.5 3 62.5 Central African Republic ...... ........ - - 1 9.4 1 9.4 Ghana ............................ .. - - 1 29.0 1 29.0 Guinea .............................. - - 2 46.0 2 46.0 Guinea-Bissau ....................... - - 1 6.8 1 6.8 Ivory Coast ............... ........... 2 133.0 - - 2 133.0 Liberia .............................. 1 5.0 1 4.0 2 9.0 Mali ............................... - - 2 20.7 2 20.7 Mauritania ................ ..........- 1 15.0 1 15.0 Niger ............................... - - 1 21.5 1 21.5 Niaeria .............................. 3 321.0 - - 3 321.0 Senegal ............................. 3 55.8 2 47.1 5 102.9 Sierra Leone ............. ............ - - 3 30.5 3 30.5 Togo ................................ - - 2 25.7 2 25.7 Upper Volta ............ ............. - - 2 62.0 2 62.0 Total .............................. 11 $ 554.8 24 $ 383.5 35 $ 938.3 East Asia and Pacific China ............................... 1 $ 100.0 - $ 100.0 1 $ 200.0 Fiji ................................. 1 18.0 - - 1 18.0 Indonesia ............................ 7 673.0 - - 7 673.0 Korea, Republic of ........ ............ 5 390.0 - - 5 390.0 Malaysia ............................. 5 182.0 - - 5 182.0 Papua New Guinea ........ ............ 1 6.0 1 27.0 2 33.0 Philippines ............... ........... 5 533.0 - - 5 533.0 Solomon Islands ...... ............... - - 1 1.5 1 1.5 Thailand ............................. 7 325.9 - - 7 325.9 Western Samoa ....... ............... - - 1 2.0 1 2.0 Total .............................. 32 $ 2,227.9 3 $ 130.5 35 $2,358.4 South Asia Bangladesh .............. ............ - $ - 8 $ 334.0 8 $ 334.0 Burma .............................. - - 2 55.0 2 55.0 India ................................ 2 430.0 11 1,281.0 13 1,711.0 Nepal ............... ............... - - 5 62.2 5 62.2 Pakistan ............................. - 6 202.0 6 202.0 SriLanka ............................. - - 4 167.0 4 167.0 Total .............. ............... 2 $ 430.0 36 $2,101.2 38 $2,531.2 Projects Approved, by Region 121 Bank loans IDA credits I Total I Rcgion Country Number2 Amount Number2 Amount Number2 Amount Europe, Middle East, and North Africa Algeria .............................. 1 $ 110.0 - $ - 1 $ 110.0 Cyprus .............................. 1 14.0 - - 1 14.0 Egypt, Arab Republic of ....... ....... 2 89.0 5 197.6 7 286.6 Jordan ............. ................ 2 46.0 - - 2 46.0 Morocco . ........................... 3 223.0 - - 3 223.0 Portugal ............................. 2 120.0 - - 2 120.0 Romania . ........................... 4 360.0 - - 4 360.0 Syrian Arab Republic ....... .......... 1 15.6 - - 1 15.6 Tunisia .............................. 6 152.6 - - 6 152.6 Turkey .............................. 8 722.0 - - 8 722.0 Yemen Arab Republic ....... .......... - - 3 41.0 3 41.0 Yemen, People's Democratic Republic of - - 3 24.0 3 24.0 Yugoslavia . ......................... 4 321.0 - - 4 321.0 Total .............................. 34 $2,173.2 11 $ 262.6 45 $ 2,435.8 Latin America and the Caribbean Argentina ............................ 2 $ 68.0 - $ - 2 $ 68.0 Bahamas . ........................... 1 7.0 - - 1 7.0 Barbados ............................ 1 6.0 - - 1 6.0 Brazil ............................... 8 844.0 - - 8 844.0 Chile ............................... 2 78.0 - - 2 78.0 Colombia ............................ 5 550.0 - - 5 550.0 Costa Rica ............................ 2 29.0 - - 2 29.0 Dominican Republic ....... ........ 1 24.0 - - 1 24.0 Ecuador ............................. 1 20.0 - - 1 20.0 Guyana ........................ .. 3 23.5 - 8.0 3 31.5 Haiti ................................ - - 3 21.2 3 21.2 Honduras ............................ 1 28.0 - - 1 28.0 Jamaica ............................. 2 44.5 - - 2 44.5 Mexico .............................. 7 1,081.0 - - 7 1,081.0 Nicaragua ............................ 2 33.7 1 5.0 3 38.7 Panama ............................. 3 45.5 - - 3 45.5 Paraguay . ........................... 3 58.8 - - 3 58.8 Peru ................................ 4 148.0 - - 4 148.0 Uruguay . ........................... 1 30.0 - - 1 30.0 Total ......................... .... 49 $3,119.0 4 $ 34.2 53 $ 3,153.2 GRAND TOTAL .......... ............. 140 $8,808.9 106 $3,482.1 246 $12,291.0 i All supplements are tncluded in the amounts, but are not counted as separate lending operations. 'Joint Bank/IDA operations are counted only once, as Bank operations. 122 Projects Approved for Bank and IDA Assistance in Fiscal 1981, by Purpose July 1, 198(0-June 30. 1981 (USS millions) Purpose' Bank IDA Total Agriculture and Rural Development Bangladesh-Agricultural credit ....... ....................... s - $ 40.0 $ 40.0 Bangladesh-Irrigation and drainage ...... .................... - 18.( 18.0 Benin-Area development ......... .......................... - 20.0 20.0 Brazil-Area development ......... .......................... 56.0 - 56.0 Brazil-Area development ......... .......................... 29.0 - 29.0 Brazil-Research and extension ....... ....................... 60.0 - 60.0 Burma-Agroindustry .......... ............................ - 23.0 23.0 Burma-Forestry ...-....................................... 32.0 32.0 Burundi-Area development ........ ......................... - 19.3 19.3 Cameroon-Area development ........ ....................... 25.0 12.5 37.5 Chile-Agricultural credit ................................ 36.0 - 36.0 Colombia-Irrigation and drainage ....... .................... 37.0 - 37.0 Cyprus-Agricultural credit ........ .......................... 14.0 _ 14.0 Dominican Republic-Perennial crops ...... .................. 24.0 - 24.0 Ecuador-Area development ........ ........................ 20.0 - 20.0 Egypt, Arab Republic of-Fisheries ...... .................... - 14.0 14.0 Egypt. Arab Republic of-Irrigation and drainage ..... ......... - 80.0 80.0 Ethiopia-Area development ........ ........................ - 40.0 40.0 Guinea-Livestock ............ ............................. - 17.5 17.5 Haiti-Perennial crops .......... ............................ - 3.2 3.2 India-Agricultural credit ......... .......................... - 125.0 125.0 India-Irrigation and drainage ........ ....................... 30.0 - 30.0 India-Irrigation and drainage ............ .................. - 54.0 54.0 India-Irrigation and drainage .............. ................ - 83.0 83.0 India-Irrigation and drainage ........ ....................... - 140.0 140.0 India-Research and extension ........ ....................... - 28.0 28.0 India-Research and extension ........ ....................... - 37.0 37.0 India-Research and extension ....... ........................ - 23.0 23.0 Indonesia-Area development ......... ...................... 161.0 - 161.0 Indonesia-Irrigation and drainage ...... ..................... 22.0 - 22.0 Indonesia-Perennial crops ..... ............................ 46.0 - 46.0 Kenya-Agricultural credit ........ .......................... 25.0 10.0 35.0 Korea, Republic of-Agricultural credit ...... ................. 50.0 - 50.0 Madagascar-Agricultural credit ....... ...................... - 11.5 11.5 Madagascar-Forestry .......... ............................ - 20.0 20.0 Madagascar-Irrigation and drainage ...... ................... - 2.3 2.3 Malaysia-Agricultural credit ........ ........................ 30.0 - 30.0 Malaysia-Area development ........ ........................ 25.0 - 25.0 Malaysia-Area development ........ ..................... 37.0 - 37.0 Malaysia-Irrigation and drainage ....... ..................... 40.0 - 40.0 Malaysia-Irrigation and drainage ....... ..................... 50.0 - 50.0 Mauritania-Irrigation and drainage ...... .................... - 15.0 15.0 Mexico-Agricultural credit ................... ............. 325.0 - 325.0 Mexico-Irrigation and drainage ....... ...................... 280.0 - 280.0 Mexico-Irrigation and drainage ............................. 23.0 23.0 Nepal-Agroindustrv ................ ...................... - 6.2 6.2 Nepal-Agroindustrv ........... ............................ - 8.0 8.0 Nepal-Irrigation and drainage ....... ....................... - 3.5 3.5 Nepal-Research and extension ....... ....................... - 17.5 17.5 Nigeria-Area development ....... ........................ 142.0 - 142.0 Nigeria-Area development ........ ......................... 132.0 - 132.0 Pakistan-Agroindustry .......... ............... ........ - 32.0 32.0 Pakistan-Irrigation and drainage................... ...... - 41.0 41.0 Pakistan-Research and extension ....... ..................... - 24.0 24.0 Papua New Guinea-Agricultural credit ...... ................. - 15.0 15.0 Paraguay-Livestock ............ ............................ 30.0 - 30.0 Philippines-Agricultural credit ................ ............. 45.0 - 45.0 Philippines-Irrigation and drainage ...... .................... 38.0 - 38.0 Romania-Livestock ............ ............................ 80.0 - 80.0 Romania-Irrigation and drainage ....... ..................... 75.0 - 75.0 Projects Approved by Purpose 123 Purposcl Bank IDA lotal Agriculture and Rural Development (continued) Romania-Irrigation and drainage ............................ $ 80.0 - s 80.0 Rwanda-Perennial crops ................... - $ 15.0 15.0 Senegal-Forestry ....... .............. - 9.3 9.3 Sierra Leone-Area development . .............. - 12.0 12.0 Sierra Leone-Area development . . - 8.5 8.5 Sri Lanka-Area development ................. - 33.5 33.5 Sri Lanka-Irrigation and drainage . . - 90.0 90.0 Sri Lanka-Irrigation and drainage . .............. - 30.0 30.0 Sudan-Irrigation and drainage ................ - 32.0 32.0 Sudan-Irrigation and drainage ................ - 35.0 35.0 Tanzania-Perennial crops .......... ........ - 6.8 6.8 Thailand-Irrigation and drainage . ............... 57.0 - 57.0 Thailand-Research and extension . ............... 30.0 - 30.0 Tunisia-Area development ................... 24.0 - 24.0 Turkey-Perennial crops . . 40-0 - 40.0 Upper Volta-Area development ................ - 16.0 16.0 Western Samoa-Agriculture sector loan . ........... - 2.0 2.0 Yemen Arab Republic-Area development . .......... - 17.0 17.0 Yemen, People's Democratic Republic of-Area development .... - 8.0 8.0 Yugoslavia-Agroindustry .................... 90.0 - 90.0 Yugoslavia-Area development ................. 87.0 - 87.0 Zaire-Agroindustry ..................... - 26.4 26.4 Zambia-Area development ................... 11.0 - 11.0 Total ................................................... S2,406.0 $1,357.0 $3,763.0 Development Finance Companies Bangladesh ................................................ $ - $ 50.0 $ 50.0 Haiti ..................................................... - 7.0 7.0 Jamaica ................................................... 37.0 - 37.0 Korea. Republic of ......................................... 100.0 - 100.0 Korea, Republic of ........................... ............. 60.0 - 60.0 Korea, Republic of .............. , . . 90.0 - 90.0 Morocco ............ ...................................... 100.0 - 100.0 Nicaragua ................................................. 30.0 - 30.0 Panama ................................................... 20.0 - 20.0 Peru . ..................................................... 60.0 - 60.0 Philippines ................................................ 150.0 - 150.0 Portugal . .................................................. 100.0 - 100.0 Solomon Islands ............................................. - 1.5 1.5 Thailand .................................................. 30.0 - 30.0 Turkev ................................................... 70.0 - 70.0 Turkey ................................................... 40.0 - 40.0 Uruguay .................................................. 30.0 - 30.0 Yemen Arab Republic ............. .......................... - 12.0 12.0 Yugoslavia ............. ................................... 110.0 - 110.0 Zambia . .................................................. 15.0 - 15.0 Total ................................................... $1,042.0 $ 70.5 $1,112.5 Education Argentina ................................................. $ 58.0 $ - $ 58.0 Bahamas . .7.0 - 7.0 Central African Republic' .- 0.9 0.9 China .100.0 100.0 200.0 Egypt, Arab Republic of .- 40.1 40.1 Ethiopia .- 35.0 35.0 Indonesia .45.0) - 45.0 Kenya .- 40.0 40.0 Lesotho .- 10.( 10.0 Malawi .- 41.0 41.0 (continued) 124 Projects Approved for Bank and IDA Assistance in Fiscal 1981, by Purpose (continued) July 1, 1980-June 30, 1981 (US$ millions) Purpose I Bank IDA Total Education (continued) Niger ................................................... 21.5 21.5 Pakistan ....... ......................................... - 25.0 25.0 Papua New Guinea .................... ..................... 6.0 12.0 18.0 Paraguay .................................................. 17.0 - 17.0 Philippines ....................... ........................ 100.0 - 100.0 Somalia ................................................... - 1(0.2 10.2 Syrian Arab Republic ................... .................... 15.6 - 15.6 Tanzania .................................................. - 25.(0 25.0 Tunisia ................................................... 26.0 - 26.0 Total ...........................................S....... $ 374.6 $ 360.7 $ 735.3 Energy Oil, gas, and coal Argentina .............. ................................... S 10.0 S - $ 10.0 Bangladesh ................................................ - S5.( 85.0 Costa Rica ................................................. 3.0 - 3.0 Egypt, Arab Republic of ................. .................. 25.0 - 25.0 Guinea-Bissau ...................... .. ...................... - 6.8 6.8 India .................................................... 400.0 - 400.0 Jamaica ................................................... 7.5 - 7.5 Liberia .................................................... 5.0 - 5.0 Mali ........................... ........................... - 3.7 3.7 Panama ................................................... 6.5 - 6.5 Portugal .................................................. 20.0 - 20.0 Turkey .................................................... 62.0 - 62.0 Turkey .................................................... 25.0 - 25.0 Total .................................................... $ 564.0 S 95.5 $ 659.5 Power Barbados .................................................. $ 6.0 S - S 6.0 Brazil ................................................... 125.0 - 125.0 Brazil ................................................... 54.0 - 54.0 Colombia .................................................. 359.0 - 359.0 Colombia .................................................. 36.0 - 36.0 Colombia .................................................. 85.0 - 85.0 Guinea ........_ .28............. 28.5 28.5 Guyana ................................................. 8.0 - 8.0 Indonesia ................................. ................ 250.0 -- 250.0 Ivory Coast ................................................ 33.0 - 33.0 Jordan .................................................. 25.0 - 25.0 Peru ................................................... 25.0 - 25.0 Romania .................................................. 125.0 - 125.0 Swaziland ......................... ......................... 10.0 - 10.0 Thailand ................................................... 100.0 - 100.0 Tunisia ................................................... 41.5 - 41.5 Yemen Arab Republic .................... ................... - 12.0 12.0 Total ................................ .................. $1,282.5 S 411.5 $ 1,323.0 Industry Brazil-Fertilizer and other chemicals ....... .................. $ 250.0 s - $ 250.0 Burundi-Mining, other extractive ...... ...... ............. - 4.0 4.0 Egypt. Arab Republic of-Iron and steel .... ................. 64.0 - 64.0 India-Fertilizer and other chemicals ....... .................. - 4011.0 400,0 Peru-Iron and steel .............. .......................... 5.0 - 5.0 Senegal-Fertilizer and other chemicals ...... ................. 19.3 - 19.3 Thailand-Fertilizer and other chemicals ...... ................ 8.9 - 8.9 Togo-Fertilizer and other chemicals ....... .................. - 5.7 5.7 Tunisia-Textiles ............ .............................. 18.6 - 18.6 Turkey-Fertilizer and other chemicals ...... .................. 110.0 - 110.0 Total .......S............................................ 5 475.8 $ 4119.7 $ 885.5 Projects Approved, by Purpose 125 Purpose' Bank IDA Total Nonproject Bangladesh .......... ..................................... $ - $ 65.0 $ 65.0 Fiji ..................................................... 18.0 - 18.0 Guyana ................................................... 14.0 8.0 22.0 Malawi .................................................... 45.0 - 45.0 Mauritius .................................................. 15.0 - 15.0 Nicaragua ..................................... ........... - 5.0 5.0 Pakistan ................................................... - 50.0 50.0 Philippines ................................................. 200.0 - 200.0 Senegal .................................................... 30.0 30.0 60.0 Tanzania ................................................... - 50.0 50.0 Turkey .................................................... 300.0 - 300.0 Turkey .................................................... 75.0 - 75.0 Zimbabwe ................................................. 50.0 15.0 65.0 Zimbabwe ................................................. 42.0 - 42.0 Total .................................................... $ 789.0 $ 223.0 $ 1,012.0 Population, Health, and Nutrition Tunisia .................................................... $ 12.5 $ - $ 12.5 Total .................................................... $ 12.5 $ - $ 12.5 Small-Scale Enterprises Bangladesh ................................................ $ - $ 35.0 $ 35.0 Cameroon ................................................. 15.0 - 15.0 Indonesia .................................................. 106.0 - 106.0 Liberia .................................................... - 4.0 4.0 Pakistan ................................................... - 30.0 30.0 Senegal .................................................... 6.5 2.5 9.0 Tunisia .................................................... 30.0 - 30.0 Total .................................................... $ 157.5 $ 71.5 $ 229.0 Technical Assistance Bangladesh ................................................ $ - $ 16.0 $ 16.0 Cameroon ................................................. - 10.0 10.0 Central African Republic ................... - 4.0 4.0 Egypt, Arab Republic of ................... - 6.9 6.9 Guyana ................................................... 1.5 - 1.5 Madagascar ................................................ - 11.5 11.5 Malawi .................................................... 1.0 - 1.0 Nigeria .................................................... 47.0 - 47.0 Senegal ................................................... - 5.3 5.3 Sudan ..................................................... - 6.0 6.0 Tanzania ................................................... - 11.0 11.0 Uganda ................................................... - 8.0 8.0 Zaire ..................................................... - 2.9 2.9 Total .................................................... $ 49.5 $ 81.6 $ 131.1 Telecommunications Burundi ................................................... $ - $ 7.7 $ 7.7 India ..................................................... - 314.0 314.0 Rwanda ................................................... - 7.5 7.5 Total .................................................... $ - $ 329.2 $ 329.2 Transportation Algeria-Highways ......................................... $ 110.0 $ - $ 110.0 Bangladesh-Transportation sector loan . ............ - 25.0 25.0 Benin-Highways ....................... - 11.3 11.3 Benin-Highways ....................... - 7.0 7.0 Botswana-Highways ....................................... 17.0 - 17.0 Burundi-Highways ......... . ............................. - 25.0 25.0 (continued) 126 Projects Approved for Bank and IDA Assistance in Fiscal 1981, by Purpose (continued) July 1, 198(0-June 30, 1981 (us8 millions) Purposce Bank IDA Total Transportation (continued) Central African Republic-Highways 2. . 4.5 4.5 Chile-Highways .42.0 - 42.0 Colombia-Highways .33.0 - 33.0 Ghana-Railways .- 29.0 29.0 Haiti-PoTts and waterways .- 11.(0 11.0 Honduras-Highwavs .28.0 - 28.0 India-Highways.. - 35.0 35.0 Ivory Coast-Highways .100.( - 100.0 Kenva-Railways .58.0 58.0 Malawi-Highways .- 33.0) 33.0 Mali-Hihways.. - 17.0 17.0 Mexico-Railways .150.0 - 150.0 Mexico-Transportation sector loan .14.0 - 14.0 Panama-Highwvays .19.0 - 19.0 Peru-Airlines and airports .58.0 - 58.0 Sierra Leone-Highways .- 10.0 10.0 Sri Lanka-Transportation sector loan .- 13.5 13.5 Thailand-Ports and waterways .47.0 - 47.0 Thailand-Transportation sector loan .53.0 - 53.0 Togo-Highways .- 20.0 20.0 Upper Volta-Highways.- 46.0 46.0 Yemen, People's Democratic Republic of-Highways .- 12.5 12.5 Yugoslavia-Railways .34.0 - 34.0 Total .$ 763.0 $ 299.8 S 1,062.8 Urbanization Brazil .$ 90.0 $ - $ 90.0 India ..- 42.0 42.0 Indonesia ..43.0 - 43.0 Jordan ..21.0 - 21.0 Korea, Republic of ..90.0 - 90.0 Mauritius ..15.0 - 15.0 Mexico ..164.0 - 164.0 Morocco ..36.0 - 36.0 Total .$ 459.0 $ 42.0 $ 501.0 Water Supply and Sewerage Benin .$ - S 5.0 $ 5.0 Brazil .180.0 - 180.Q Costa Rica .26.0 - 26.0 Egypt, Arab Republic of .- 56.6 56.6 Mexico .125.0 - 125.0 Morocco .87.0 - 87.0 Nepal .- 27.0 27.0 Nicaragua .3.7 - 3.7 Paraguay .11.8 - 11.8 Uganda .- 9.0 9.0 Yemen, People's Democratic Republic of .- 3.5 3.5 Total . 433.5 $ 101.1 S 534.6 GRAND TOTAL .$8,808.9 $3,482.1 $12,291.0 NOTE: For additional details. see Bank/IDA Appendices 3 and 4, Statement of Loans Approved during Fiscal Year 1981 and Statement of Development Credits Approved during Fiscal Year 1981, respectively. I Operations have been classified by the major purpose they finance. Many projects include activity in morc thne one sector or subsector. 2 Supplementary financing to previous credits, not counted as separate lending operations. 127 Statistical Annex Page General Notes to Annex Tables ...................... 128 Table 1 Selected Economic Indicators, Regional Summary, 1961-80 ................................ 130 2 External Public Debt Outstanding (Including Undisbursed), by Region, 1973-79 ............................................................ 132 3 External Public Debt Outstanding, by Country and Type of Creditor, December 31, 1979 ............................................... . 134 4 Service Payments on External Public Debt as Percentage of Exports of Goods and Services, 1973-79 .................. .. .. .. .. .. .. .. .. .. .. .. .. . . 137 5 Projected Debt Service on External Public Debt Outstanding, by Region and Type of Creditor, as of December 31, 1979 ................................. . 140 6 External Resource Flows and Service Payments on External Public Debt, by Region, 1973-79 ........................................... . 142 7 Average Terms of Loan Commitments and Grant Element of Loans and Grants, by Region, 1973-79 ................... .. .. .. .. ... .. .. .. .. ... .. . . 143 8 Foreign and International Bond Issues, by Borrower Entity, 1978-80 and First Half 1981 ............... .. .. . .. .. . .. .. . .. .. . .. .. . . 144 9 Publicized Eurocurrency Credits, by Borrower Entity, 1978-80 and First Half 1981 ..... .............................................. . 147 10 Average Terms of Eurocurrency Credits for Selected Developing Countries, Third Quarter 1979 to Second Quarter 1981 ......................................................... . 150 128 Statistica Annex General Notes to Annex Tables The tables of this Annex present data on selected Nicaragua, Panama, Paraguay, Peru, Trinidad and economic indicators, external public debt, and interna- Tobago, Uruguay, Venezuela. tional capital markets. As in past Annual Reports, most of the tables are organized on geographic lines. North Africa and Middle East-Algeria, Bahrain, In Table 1, the basic series on selected economic Egypt (Arab Republic of), Jordan, Lebanon, Morocco, indicators is based on data stored in the IBRD Socio- Oman, Syrian Arab Republic, Tunisia, Yemen Arab economic Data Bank, which are mainly obtained from Republic, Yemen (People's Democratic Republic of). World Bank country economic reports, supplemented by data from national and other international publications. SouthAsia-Afghanistan,2 Bangladesh, Burma, India, The indicators presented in this table are the same as Maldives, Nepal, Pakistan, Sri Lanka. those of last year. In Tables 2 through 7, the principal source of data on More advanced Mediterranean countries-Cyprus, external debt is information received by the World Bank Greece, Israel, Malta, Portugal, Spain, Turkey, from its member countries. These data are checked with Yugoslavia. and supplemented by information from several other sources, primarily reporting by creditor countries on their Not all of the 96 countries or other areas have been lending and publicized Eurocurrency credits. The notes on reporting for their full historical period, 1973-79, covered the debt of the Philippines and Yugoslavia in Table 2 by the tables. Where individual reports are lacking for apply to all Tables 2 through 7. certain years, estimates have been made by the World The 96 countries or other areas included in the debt Bank's staff in order to present a consistent series of tables are those for which reporting on external public data. debt is sufficient for a reliable presentation of debt For the purpose of these tables, external public debt is outstanding and future service payments. The classifica- defined as debt repayable to external creditors in foreign tion by geographical region is as follows: currency, goods, or services, with an original or extended maturity of more than one year, which is a direct Africa South of the Sahara-Benin, Botswana, Bu- obligation of, or has repayment guaranteed by, a public rundi, Cameroon, Central African Republic, Chad, body in the borrowing country. Most military debts are not Comoros, Congo (People's Republic of the), Ethiopia, reported, although a few countries have included such Gabon, Gambia (The), Ghana, Guinea, Ivory Coast, obligations in their data. Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, The World Bank continues to work in cooperation with Mauritania, Mauritius, Niger, Nigeria, Rwanda, its member countries toward the improvement of debt Senegal, Sierra Leone, Somalia, Sudan, Swaziland, statistics. This effort results in many cases in a Tanzania, Togo, Uganda, Upper Volta, Zaire, Zambia broadening of the coverage of the data for both current (and the East African Community). and past periods. Therefore, a comparison with debt tables in the 1980 Annual Report will show changes in East Asia and Pacific-Fiji, Hong Kong,' Indonesia, data given for past years. The current Annual Report Korea (Republic of), Malaysia, Papua New Guinea, should be regarded as the more reliable. Users of the Philippines, Singapore, Thailand, Taiwan (China). Latin America and the Caribbean-Argentina, Bar- IHong Kong io a nonmetroclitan territory in respect of wnich the Unites bados, Bolivia, Brazil, Chile, Colombia, Costa Rica, Kingdom has accepted tihe Bank's Articles of Agreement. Dominican Republic, Ecuador, El Salvador, Guate- 2 Note that n these tables Afghanistan s cassified under South Asia, mala, Guyana, Haiti, Honduras, Jamaica, Mexico, uhile in the d:scussior of the year's activsiles by region, it is classified mala, Gyn,HiiHodrsJaac,Mxc, uerEurope, Middle East, und North Afr'ica. Sttistilcal Annex 129 tables on external public debt should be particularly currency) contributions; they are on a disbursement basis careful in making comparisons with past Annual Reports, in both tables. The grants included in these tables as the coverage has changed over the years. comprise: (1) contributions by countries that are mem- in Table 4, debt-service ratios represent service bers of the Development Assistance Committee (DAC) of payments (amortization plus interest) on external public the OECD; (2) grants by multilateral agencies as com- debt as a percentage of the exports of goods and all piled by OECD; (3) disbursements by IDB on loans re- services. The debt-service figures used in the present payable in local currencies. Grants for technical assis- table are those for actual debt service paid during the tance have been excluded. Data for grants do not include year. If the entire amount of contractual debt service was grants from bilateral donors other than DAC countries, not paid during a year, this is reflected in a lower debt- although grants from other sources may have been large service ratio than would have been the case had in some cases. However, debt data include obligations to contractual debt service instead of actual service been creditors of all nationalities. used in computing the ratio. Likewise, the prepayment of Table 8 deals with foreign and international bond debt service may result in a higher debt-service ratio. issues. "Foreign bonds" are those issued in a single The debt-service ratio, by itself, is an inadequate and national market. "International bonds" are those which incomplete indicator of the debt situation, and interna- are sold in two or more markets simultaneously. During tional comparisons of these ratios have only limited the period under review, foreign bonds have been issued meaning. Many other factors must also be considered, in the following national markets: Austria, Belgium, such as the stability and diversification of the export Finland, France, Germany (Federal Republic of), Japan, structure, the extent to which imports can be reduced Libya, Luxembourg, Netherlands, Saudi Arabia, Sweden, without adversely affecting the prospects for future Switzerland, United Kingdom, and United States. growth, the size of foreign exchange reserves and In Tables 9 and 10, "Eurocurrency credits" are credits available compensatory financing facilities, and the granted by private banks out of funds on deposit with debt-service record. Further, external public debt con- them or borrowed by them in the Eurocurrency market. stitutes only a part of the total indebtedness and, thus, The term "Euro" is used to refer to "offshore" markets considerably understates the burden of indebtedness in outside, as well as inside, Europe. The term "credit" is some cases. Therefore, the debt-service ratio is only an used to refer to loans, lines of credit, and other forms of indication of the importance of debt and debt service in medium-term and long-term credit. the total foreign exchange situation. Data on external public debt are converted to US In Table 6, net flow is defined as disbursements on dollars at current market rates. Capital flows and service loans, grants, and grantlike loans minus amortization on payments are converted to US dollars at end-1978 rates. loans. Net transfer is net flow minus interest on loans. However, debts repayable in multiple currencies, goods, or In Table 7, grant element is defined as the face value services, and debt which has a provision for maintenance of loan commitments less thO discounted present value of value of the currency of repayment, are shown at their of the future flow of repayments of principal and interest book values. expressed as a percentage of face value. The discount Information about foreign and international bonds and rate used is 10 percent, the conventional rate used by the Eurocurrency credits, denominated in national currencies, Organisation for Economic Co-operation and Development is converted to US dollars using monthly average market (OECD) in assessing terms. exchange rates of currency units per US dollar, series In Tables 6 and 7, the source of data for grants is "af," from the IMF's International Financial Statistics OECD. For grantlike loans, the data sources are OECD and (IFS) File. For loans denominated in composite currencies the Inter-American Development Bank (IDB). Grants con- (e.g., European unit of account), the conversion is made sist of grant and grantlike (loans repayable in local using rates derived by the World Bank. 130 Statistical Annex Selected Economic Indicators, Regional Summary Average annual real growth and shares in Gross National Product (GNP) 1961-65, 1966-76,1977, 1978, 1979, and 1980 (Percentages) Region Indicator 1961-65 1966-76 1977 1978 1979 1980 (P) All developing regions Real rate of growth Total GNP .................. 5.6 6.1 5.8 5.2 5.2 4.6 Agricultural production ........ 2.8 2.9 3.3 4.0 0.6 3.6 Manufacturing production ...... 7.7 8.3 7.1 6.7 6.3 n.a. Population ................. 2.4 2.4 2.3 2.3 2.4 2.4 GNP per capita .............. 3.1 3.6 3.5 2.8 2.7 2.3 Gross investment ....... ..... 7.8 8.9 8.1 6.0 6.0 n.a. Share in GNP Gross investment ....... .... 20.1 22.2 25.3 25.8 25.9 n.a. Gross national savings ........ 18.0 21.2 24.7 24.2 25.7 n.a. Africa South of the Sahara Real rate of growth Total GNP .................. 4.0 5.0 2.9 3.4 3.3 2.3 Agricultural production ........ 2.7 1.6 0.6 2.8 1.6 2.2 Manufacturing production ...... 9.4 7.1 3.4 7.9 5.5 n.a. Population a..i................... 2.5 2.6 2.6 2.7 2.7 2.8 GNP per capita ........ ...... 1.5 2.3 0.3 0.7 0.6 -0.4 Gross investment ....... ..... 7.6 10.9 9.2 1.2 3.5 n.a. Share in GNP Gross investment ....... ..... 16.4 19.1 25.4 24.6 23.9 n.a. Gross national savings ........ 11.7 15.2 18.6 17.6 19.9 n.a. East Asia and Pacific Real rate of growth Total GNP .................. 5.8 8.1 8.4 9.4 6.6 3.9 Agricultural production ........ 5.3 3.8 4.7 4.6 3.0 0.1 Manufacturing production ...... 9.2 15.6 13.4 17.1 9.7 5.6 Population ................. 2.5 2.4 2.3 2.3 2.2 2.2 GNP per capita .............. 3.2 5.5 5.9 6.9 4.3 1.6 Gross investment ....... ..... 12.3 12.3 14.1 17.5 11.3 0.9 Share in GNP Gross investment ....... ..... 16.0 22.6 25.8 27.4 29.7 29.1 Gross national savings ........ 12.4 18.7 25.2 25.2 27.2 25.1 Latin America and the Caribbean Real rate of growth Total GNP .................. 5.5 5.9 4.8 3.9 5.5 5.4 Agricultural production ........ 3.7 2.9 5.2 4.2 3.5 3.3 Manufacturing production ...... 5.8 7.0 3.9 3.4 7.9 n.a. Population ................. 2.8 2.6 2.3 2.3 2.3 2.3 GNP per capita ........ ...... 2.5 3.2 2.5 1.6 3.1 3.1 Gross investment ....... ..... 4.6 7.8 6.1 3.5 6.3 8.9 Share in GNP Gross investment ....... ..... 20.7 22.3 24.9 24.9 24.9 24.1 Gross national savings ........ 20.0 20.1 22.6 21.7 22.0 na. North Africa and Middle East Real rate of growth Total GNP .................. 6.8 8.1 10.0 6.0 14.6 7.5 Agricultural production ........ 1.5 2.4 -8.3 8.0 0.2 6.2 Manufacturing production ...... 8.5 7.3 11.8 9.1 7.3 n.a. Population ................. 2.7 2.8 3.1 3.2 3.1 3.1 GNP per capita ......... ..... 4.0 5.1 6.6 2.7 11.1 4.2 Gross investment ....... ..... 0.4 16.1 19.5 15.3 7.7 n.a. Share in GNP Gross investment ....... ..... 22.4 23.2 30.3 33.5 30.7 n.a. Gross national savings ........ 23.9 36.8 45.3 42.1 46.9 n.a. Statistical Annex 131 Table I Region Indicator 1961-65 1966-76 1977 1978 1979 1980 (P) South Asia Real rate of growth Total GNP .................. 3.8 3.7 7.1 7.0 -2.6 7.4 Agricultural production ...... .. 0.7 2.7 8.4 3.3 -5.0 7.4 Manufacturing production ...... 9.1 4.5 2.6 3.9 2.8 -2.0 Population ... ............... 2.3 2.3 2.1 2.2 2.5 2.3 GNP per capita ......... ..... 1.4 1.4 4.9 4.8 - 4.9 5.0 Gross investment ....... ..... 8.1 4.0 -0.7 13.5 -1.7 7.3 Share in GNP Gross investment ....... ..... 17.3 18.1 19.2 21.5 21.6 23.2 Gross national savings . ........ 14.2 15.9 18.0 19.7 18.6 18.7 More advanced Mediterranean countries Real rate of growth Total GNP .................. 7.5 6.0 4.0 4.1 2.6 1.4 Agricultural production ..... .. 3.1 3.9 -0.6 4.0 1.0 3.2 Manufacturing production ...... 10.5 8.4 10.1 5.6 3.1 2.3 Population ................. 1.5 1.5 1.5 1.5 1.5 1.5 GNP per capita .............. 5.9 4.5 2.5 2.6 1.1 -0.1 Gross investment ....... ..... 12.7 6.4 4.1 -3.8 4.9 n.a. Share in GNP Gross investment ....... ..... 24.0 24.6 25.4 24.1 24.5 n.a. Gross national savings ...... .. 20.8 21.5 20.7 21.5 21.7 n.a. Industrialized countries Real rate of growth Total GNP .................. 5.3 4.2 3.8 4.0 3.5 1.3 Agricultural production ..... ... 1.8 2.8 2.7 3.5 0.0 -0.8 Manufacturing production ...... 6.2 3.9 3.7 4.4 5.1 Population ................. 1.2 0.8 0.6 0.7 0.6 0.7 GNP per capita .............. 4.1 3.3 3.2 3.3 2.8 0.6 Gross investment ........ .... 7.2 4.5 4.1 4.7 3.8 -1.9 Share in GNP Gross investment ........ .... 20.5 21.2 22.1 22.3 21.6 Gross national savings ...... .. 26.6 29.3 22.1 22.2 19.7 NOTE: A I the countries listed below have been included for the estimates of the real rates of growth of GNP and population. For other Indicators, some countries or other areas have been omitted due to lack of data. Industrialized countries-Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Iceland, Ireland, Italy. Japan, Luxembourg, Netherlands, New Zealand, Norway, South Africa, Sweden, Switzerland, Un ted Kingdom, United States Developing countries or other areas-Those listed n the "General Notes to Annex Tables" and those below: Africa South of the Sahara-Zimbabwe. Latin Amer ca and the Caribbean-Bahamas, Grenada. North Africa and Middle East-Iraq, Kuwait, L bya, Qatar, Saudi Arabia. United Arab Emirates. (P) Preliminary. Source: World Bank. 132 Statistical Annex External Public Debt Outstanding (Including Undisbursed), by Region, 1973-79 (US$ millions) Africa Latin More South East Asia America North Africa advanced Year of the and and the and Mediterranean Tyrpe of creditor Sahara Pacific' Caribbean Middle East South Asia countrieS2 Total Total debt outstanding end of year 1973 ............. 14,515.9 17,678.2 37,136.1 12,176.9 21,293.9 16,599.1 119,400.0 1974 ............. 18,539.3 24,530.3 48,913.3 16,654.6 26,150.0 20,596.0 155,383.4 1975 ............. 21,584.7 30,652.2 58,785.3 25,006.2 28,371.1 23,333.6 187,733.0 1976 ............. 25,476.0 39,582.7 77,114.6 32,102.1 31,004.0 28,859.2 234,138.6 1977 ............. 31,066.6 47,478.8 96,995.4 43,382.4 35,535.6 34,392.2 288,851.1 1978 ............. 39,158.8 60,237.5 122,628.4 54,529.7 40,157.4 41,921.5 358,633.2 1979 ............. 46,023.4 67,833.5 145,393.8 61,602.1 42,439.6 51,349.5 414,641.8 Debt outstanding by type of creditor December31, 1973 Bilateral official ...... 6,754.4 8,986.1 9,560.2 6,646.0 15,202.0 7,607.9 54,756.7 Multilateral ......... 3,368.2 3,547.7 8,431.3 900.3 4,890.0 2,556.2 23,693.8 Private Suppliers .......... 1,846.5 2,740.4 4,789.5 2,151.5 1,052.4 1,209.1 13,789.4 Financial institutions . 1,839.8 1,934.7 12,114.0 2,313.2 135.6 2,915.2 21,252.4 Other ............. 706.9 469.3 2,241.1 165.8 14.0 2,310.8 5,907.9 Total ............ 14,515.9 17,678.2 37,136.1 12,176.9 21,293.9 16,599.1 119,400.0 December 31, 1974 Bilateral official ...... 8,705.3 10,695.9 11,817.5 8,746.9 18,516.4 8,853.1 67,335.1 Multilateral ......... 4,196.7 4,738.5 9,799.3 1,636.3 6,320.1 3,256.7 29,947.5 Private Suppliers .......... 2,101.5 4,262.2 5,871.4 3,111.5 1,078.7 1,196.6 17,622.0 Financial institutions . 2,844.8 4,276.0 18,438.7 2,933.8 220.8 4,789.4 33,503.6 Other ............. 690.9 557.7 2,986.3 226.0 14.0 2,500.2 6,975.1 Total ............ 18,539.3 24,530.3 48,913.3 16,654.6 26,150.0 20,596.1 155,383.4 December 31, 1975 Bilateral official ...... 9,499.2 11,732.4 12,609.0 12,482.4 19,467.6 9,773.5 75,564.0 Multilateral ......... 5,572.5 6,044.5 11,839.3 2,180.7 7,714.8 3,751.7 37,103.5 Private Suppliers .......... 2,615.0 4,378.2 6,344.9 5,137.0 901.7 1,117.6 20,494.3 Financial institutions . 3,408.8 7,973.8 24,920.6 4,964.4 285.1 5,980.0 47,532.7 Other ........... 489.1 523.4 3,071.5 241.7 2.0 2,710.8 7,038.5 Total ........... 21,584.7 30,652.2 58,785.3 25,006.2 28,371.1 23,333.6 187,733.0 Statistical Annex 133 Table 2 Africa Latin More South East Asia America North Africa advanced Year of the and andthe and Mediterranean Type of creditor Sahara Pacific I Caribbean Middle East South Asia countries2 Total December 31, 1976 Bilateral official ..... . 10,952.6 14,156.8 15,403.5 15,616.1 21,100.4 12,096.7 89,326.2 Multilateral ........ . 6,769.9 7,789.9 14,357.6 3,188.8 8,662.4 4,301.8 45,070.3 Private Suppliers ........ . 2,889.7 5,478.3 7,192.6 5,558.4 880.1 1,313.0 23,312.0 Financial institutions . 4,656.8 11,097.2 35,659.5 7,439.7 359.1 8,247.9 67,460.2 Other ............. 207.1 1,060.4 4,501.4 299.0 2.1 2,899.8 8,969.8 Total ........... . 25,476.0 39,582.6 77,114.6 32,102.1 31.004.0 28,859.2 234,138.6 December 31, 1977 Bilateral official ..... . 12,861.8 16,556.2 16,588.2 19,602.7 23,694.4 14,096.2 103,399.5 Multilateral ........ . 8,334.0 9,645.2 16,627.8 6,220.9 10,484.7 5,115.2 56,427.7 Private Suppliers ........ . 3,472.1 6,596.0 8,416.7 6,595.6 899.8 1,494.8 27,475.0 Financial institutions . 6,208.1 13,192.7 48,480.9 10,527.1 454.6 10,218.6 89,082.0 Other ............. 190.6 1,488.8 6,881.8 436.1 2.1 3,467.5 12,466.9 Total ........... . 31,066.6 47,478.9 96,995.4 43,382.4 35,535.6 34,392.2 288,851.1 December 31, 1978 Bilateral official ..... . 14,996.9 20,554.9 18,518.3 23,441.8 25,446.6 18,123.4 121,081.9 Multilateral ........ . 10,193.8 12,522.4 19,978.0 7,214.4 13,290.7 6,474.1 69,673.4 Private Suppliers ........ . 3,725.9 7,526.3 9,568.5 7,248.4 916.5 1,552.3 30,537.9 Financial institutions . 10,086.0 17,498.8 65,314.0 16,034.3 501.4 11,891.5 121,326.1 Other ............. 156.1 2,135.1 9,249.5 590.8 2.2 3,880.2 16,014.0 Total ........... . 39,158.8 60,237.5 122,628.4 54,529.7 40,157.4 41,921.5 358,633.2 December 31, 1979 Bilateral official ..... . 16,139.3 21,540.3 18,740.3 25,552.2 25,406.6 20,438.2 127,816.8 Multilateral ........ . 12,261.0 14,890.4 24,180.1 8,711.3 15,508.3 7,465.0 83,016.1 Private Suppliers ........ . 3,673.1 7,051.2 10,514.7 7,285.7 824.3 1,375.8 30,724.9 Financial institutions . 13,824.3 22,193.2 82,460.0 19,317.6 698.2 17,832.4 156,325.7 Other ........... 125.7 2,158.4 9,498.7 735.2 2.2 4,238.1 16,758.3 Total ............ 46,023.4 67,833.5 145,393.8 61,602.1 42,439.6 51,349.5 414,641.8 NoTE: Information on the sources, definitions, coverage, and interpretation of the data is given n the "General Notes to Annex Tables." Items may not add to totals due to rounding. I Does not include publiclyguaranteed private debtof the Philippinesestimated at $427 1 millton asof end of 1979. 2 Does not include nonpubicly guaranteed debt of the "social sector" of Yugoslavia contracted after March 31, 1966. Source: World Bank. 134 Statistical Annex External Public Debt Outstanding, by Country and Type of Creditor, December 31, 1979 (USS millions) External public debt outstanding Including undisbursed Region Disbursed Bilateral Multi- Financial Country or Dther area only Total official lateral Suppliers institutions Other Africa South of the Sahara Benin ....................... 185.8 314.7 113.5 185.6 3.7 6.8 - Botswana .......... ......... 134.5 220.1 59.3 126.1 2.4 30.0 2.3 Burundi ................ .... 103.0 201.2 78.5 110.3 5.5 6.9 - Cameroon .................... 1,633.6 2,622.4 944.4 691.6 148.5 838.0 - Central African Republic ....... ... 150.0 205.6 53.4 83.5 66.0 2.6 - Chad ....................... 171.7 271.7 101.1 140.5 23.7 6.5 - Comoros ..................... 38.2 78.3 47.9 30.5 -- - - Congo, People's Republic of the ..... 798.6 945.1 559.6 141.6 137.7 106.3 - East African Community ..... .... 300.3 309.8 78.6 191.0 6.8 - 33.4 Ethiopia ..................... 620.0 923.7 380.6 509.4 14.2 19.5 Gabon ....................... 1,213.5 1,477.1 319.1 58.0 152.9 939.7 7.5 Gambia, The .................. 44.8 153.0 57.0 81.2 14.8 Ghana ...................... 976.9 1,246.4 610.2 400.9 213.7 21.5 Guinea ............ ......... 990.4 1,342.0 845.7 227.8 241.9 26.5 - Ivory Coast ................... 3,546.9 5,573.5 842.3 782.5 774.4 3,156.7 17.5 Kenya ............ ......... 1,427.5 2,688.5 773.4 1,190.4 124.0 591.0 9.8 Lesotho ...................... 51.8 138.8 12.3 110.2 - 16.3 - Liberia .. .................... 454.3 703.5 292.5 257.1 23.0 130.9 - Madagascar .................. 347.7 718.8 290.2 314.7 7.5 104.4 2.0 Malawi ...................... 423.3 605.8 170.5 294.9 17.4 120.8 2.1 Mali ....................... 545.3 763.3 442.9 295.6 9.6 15.3 - Mauritania ................... 590.1 1,115.6 715.4 252.0 67.7 70.5 10.0 Mauritius .................... 226.9 369.3 139.3 132.2 4.2 93.6 - Niger ...................... 234.0 528.2 181.4 235.8 8.6 102.6 Nigeria ...................... 3,744.1 5,679.4 707.0 1,036.9 29.5 3,906.0 Rwanda ..................... 124.0 218.3 58.9 158.7 0.8 - - Senegal ..................... 785.7 1,291.4 451.4 370.3 88.7 378.1 3.0 Sierra Leone .................. 288.9 338.1 81.5 90.3 140.1 26.3 _ Somalia ..................... 545.7 906.1 617.9 287.1 - - 1.1 Sudan .... .................. 2,114.1 3,515.1 1,763.2 853.2 353.3 545.3 - Swaziland .................... 146.2 220.5 85.4 106.6 0.4 28.1 - Tanzania ..................... 1,153.4 1,836.3 857.1 881.3 18.2 68.2 11.6 Togo ....................... 851.1 1,080.3 375.8 189.3 86.4 428.8 - Uganda ............ 245.0 319.7 231.3 86.6 0.2 1.5 Upper Volta ................... 256.4 404.8 169.9 218.3 - 16.6 - Zaire ...................... 3,779.6 4,571.0 1,572.4 626.8 692.3 1,672.0 7.5 Zambia .1,558.6 2,125.8 1,058.5 512.1 205.3 333.4 16.5 Total .................. 30,802.1 46,023.4 16,139.3 12,261.0 3,673.1 13,824.3 125.7 Statistical Annex 135 Table 3 External public debt outstanding Including undisbursed Region Disbursed Bilateral Multi- Financial Country or ether area only Total official lateral Suppliers institutions Other East Asia and Pacific Fiji ....................... 105.5 207.0 53.7 105.2 4.8 39.3 4.0 Hong Kong .................... 405.1 1,130.2 - 65.8 295.1 769.2 Indonesia .................... 13,325.6 20,840.2 9,862.2 4,263.0 1,710.5 4,613.0 391.4 Korea, Republic of ......... ..... 14,694.1 20,036.4 5,063.0 3,499.7 3,699.1 7,574.4 200.2 Malaysia ..................... 3,003.7 4,300.8 829.0 1,335.7 75,8 1,754.5 305.8 Papua New Guinea ......... ..... 393.4 477.9 16.8 214.9 2.0 150.1 94.1 Philippines ................... 5,180.4 8,964.2 1,737.2 2,997.7 457.5 2,988.1 783.7 Singapore .................... 1,323.0 1,534.6 469.6 239.5 275.6 200.7 349.3 Thailand ..................... 2,699.3 5,169.9 1,612.1 1,912.8 141.3 1,473.7 30.0 Taiwan, China ............ ..... 3,082.4 5,172.2 1,896.7 256.0 389.3 2,630.2 _ Total ............... ... 44,212.4 67,833.5 21,540.3 14,890.4 1,051.2 22,193.2 2,158.4 Latin America and the Caribbean Argentina .................... 8,715.9 10,963.2 962.4 2,436.6 2,009.3 4,639.3 915.6 Barbados .................... 65.9 121.7 29.7 71.0 0.3 20.8 Bolivia ...................... 1,834.9 2,759.0 908.4 770.6 158.4 857.3 64.3 Brazil ....................... 35,092.2 47,521.6 5,012.6 5,740.0 5,013.1 28,624.9 3,131.0 Chile ....................... 4,767.0 5,460.9 1,472.7 496.0 560.4 2,699.8 231.9 Colombia .................... 3,426.2 5,418.8 1,250.9 2,537.1 272.6 1,316.6 41.6 Costa Rica ................... 1,276.8 1,868.6 357.2 699.3 53.8 733.9 24.4 Dominican Republic ........ ..... 828.3 1,533.0 525.8 562.4 2.3 442.5 Ecuador ..................... 2,207.2 3,110.0 330.3 714.1 245.2 1,751.1 69.4 El Salvador .... .............. 397.5 726.1 235.8 465.6 - 24.7 Guatemala ................... 482.2 836.4 269.0 560.3 1.5 5.6 Guyana ...................... 467.0 719.3 296.6 197.9 24.4 118.2 82.2 Haiti ....................... 208.6 345.7 96.1 245.2 0.4 4.0 Honduras .................... 745.9 1,186.0 275.9 698.6 18.3 193.2 Jamaica ..................... 1,182.3 1,564.5 604.7 414.9 26.5 424.4 94.1 Mexico ...................... 28,805.1 36,015.6 1,392.4 4,431.5 416.1 27.346.6 2,429.0 Nicaragua .................... 1,100.7 1,403.9 447.6 529.7 23.2 395.1 8.3 Panama ..................... 2,105.6 2,571.3 362.9 545.0 39.7 1,261.4 362.4 Paraguay ..................... 490.5 1,111.2 344.7 489.0 119.3 158.1 Peru ....................... 5,931.4 7,982.7 3,016.9 877.2 1,115.0 2,971.3 2.3 Trinidad and Tobago ........ ..... 421.8 608.9 161.1 94.1 - 303.2 50.5 Uruguay ..................... 913.7 1,326.7 153.4 343.7 37.0 523.7 268.9 Venezuela .................... 9,797.3 10,238.7 233.5 260.5 377.9 7,644.3 1,722.6 Total ............... ... 111,264.0 14,393.8 18,740.3 24,180.1 10,514.7 82,460.0 9,498.7 (continued) 136 Staist.cal Annex External Public Debt Outstanding, Table 3 by Country and Type of Creditor, December 31, 1979 (continued) (US$ millions) External public debt outstanding Including undisbursed Region Disbursed Bilateral Multi- Financial Country or other area only Total official lateral Suppliers institutions Other North Africa and Middle East Algeria ...................... 15,330.4 23,376.6 3,585.9 923.0 5,334.5 13,190.4 342.9 Bahrain ..................... 91.6 172.2 153.9 18.3 - - - Egypt, Arab Republic of ...... ..... 11,408.7 16,037.1 9,871.9 3,786.1 1,201.6 1,041.0 136.5 Jordan ...................... 1,047.4 1,946.4 1,227.4 261.0 61.3 396.7 Lebanon .......... .......... 92.9 421.4 114.7 161.0 - 145.8 - Morocco ..................... 6,227.3 8,493.8 3,238.0 1,525.1 314.4 3,174.7 241.6 Oman ........... ........... 455.8 583.6 361.6 79.5 51.2 91.2 - Syrian Arab Republic ....... ...... 2,283.2 4,241.8 3,404.1 639.5 149.4 48.9 - Tunisia ...................... 3,056.9 4,809.4 2,548.8 844.9 172.5 1,229.0 14.2 Yemen Arab Republic ....... ..... 466.4 920.0 613.5 305.6 0.9 - Yemen, People's Democratic Republic of .................. 441.2 599.6 432.4 167.2 - - Total .................. 40.901.8 61,602.1 25,552.2 8,711.3 7,285.7 19,317.6 735.2 South Asia Afghanistan .................. 1,143.1 1,973.2 1,602.1 325.8 45.2 - Bangladesh ................... 2,841.6 4,351.6 2,113.6 2,012.6 163.6 61.7 Burma ...................... 1,140.8 2,003.3 1,068.3 598.2 151.8 184.9 - India ...................... 15,640.9 21,287.9 11,856.1 9,182.5 169.1 78.1 2.2 Maldives ..................... 6.2 23.4 17.9 5.5 -- - Nepal ...................... 125.3 439.5 44.4 395.1 - - - Pakistan ..................... 7,997.6 10,599.9 7,590.5 2,485.6 222.8 300.9 - Sri Lanka .................... 1,086.0 1,760.9 1,113.6 502.8 71.8 72.7 - Total .................. 29,981.6 42,439.6 25,406.6 15,508.3 824.3 698.2 2.2 More advanced Mediterranean countries Cyprus ...................... 300.2 364.2 49.6 163.1 13.6 137.9 - Greece ...................... 3.531.5 4,746.0 881.0 792.2 131.9 2,807.9 132.9 Israel ...................... 9,954.4 10,673.7 6,895.6 143.9 65.3 1,444.2 2,124.6 Malta ...................... 68.7 108.7 95.0 12.3 - 1.3 - Portugal ..................... 3,707.6 4,606.4 1,430.1 868.8 293.2 1,953.4 60.8 Spain ..................... 8,656.0 11,442.5 2,078.9 546.4 77.0 6,881.1 1,859.1 Turkey ...................... 10,971.6 14,652.4 6,838.2 2,736.5 768.9 4,260.0 48.8 Yugoslavia ................... 3,699.8 4,755.6 2,169.7 2,201.8 25.9 346.4 11.9 Total .................. 40,889.6 51,349.5 20,438.2 7,465.0 1,375.8 17,832.4 4,238.1 GRAND TOTAL ....... ..... 298,051.5 414,641.8 127,816.8 83,016.1 30,724.9 156,325.7 16,758.3 NOTE: rformation on the sources, def ni-ions, coverage, and irterpretat on of the data is given in the "General Notes tc Anrex Tables." tems may not add to tota s due to rounding. Source: World Bank. Statistical Annex 137 Service Payments on External Public Debt as Percentage of Table 4 Exports of Goods and Services, 1973-79 Region Service payments as percentage of exports of goods and services Country or other area 1973 1974 1975 1976 1977 1978 1979 Africa South of the Sahara Benin ............................... 1.9 4.8 3.6 2.7 1.9 3.3 5.1 Botswana I .............................. 2.6 2.7 3.1 1.5 1.8 2.4 1.6 Burundi ............................... 2.5 2.7 5.6 4.4 2.9 3.5 3.1 Cameroon ............................... 4.7 4.3 5.3 5.4 5.3 7.4 9.5 Central African Republic ........... .......... 4.6 5.1 7.9 2.1 4.7 2.6 0.1 Chad ............................... 3.5 3.3 5.9 4.1 10.0 11.8 14.4 Comoros ............................... 2.1 1.1 4.6 5.7 7.0 10.8 n.a. Congo, People's Republic of the ...... ... -- 8,6 6.8 12.7 8.4 10.5 7.3 24.6 Ethiopia ............................... 6.4 5.4 7.5 6.4 5.9 6.5 4.9 Gabon ............................... 14.3 4.1 5.5 6.1 9.2 20.8 17.0 Gambia, The ............................. 1.1 0.8 0.6 0.6 0.5 0.8 0.4 Ghana ............................... 3.8 3.9 5.6 5.9 3.6 4.7 4.2 Guinea ............................... 29.9 16.8 14.8 15.0 19.0 20.0 22.2 Ivory Coast .............................. 7.2 7.9 8.8 8.8 10.4 13.0 15.2 Kenya 2 ... .............................. 5.5 4.7 4.5 5.9 4.8 8.1 7.5 Lesotho .............................. 3.2 2.1 2.4 4.4 3.3 1.9 0.6 Liberia .............................. 5.3 4.9 5.5 4.5 6.0 5.8 13.8 Madagascar ............................. 5.0 3.4 3.0 3.7 3.3 3.4 3.9 Malawi .............................. 7.5 7.7 7.7 7.4 5.2 9.8 9.4 Mali ............................ .. 5.8 2.3 2.4 2.8 3.8 7.1 8.5 Mauritania .............................. 9.0 6.6 20.7 37.8 22.4 16.3 32.4 Mauritius .............................. 1.3 0.8 1.6 1.0 1.6 2.4 3.7 Niger .............................. 2.0 2.8 4.6 4.4 4.4 2.7 3.6 Nigeria .............................. 4.0 1.7 2.7 3.4 0.8 1.2 1.5 Rwanda .............................. 0.2 0.8 0.6 0.8 0.9 1.4 0.6 Senegal .............................. 7.9 5.4 5.4 5.7 6.1 13.4 13.7 Sierra Leone ............................. 8.7 8.5 10.3 15.6 10.6 18.2 22.2 Somalia .............................. 3.6 4.2 3.4 2.6 3.6 3.1 1.1 Sudan .............................. 11.9 14.2 21.7 14.1 7.6 9.5 33.0 3 Swaziland ............................. 9.5 2.1 1.4 0.8 0.9 1.6 2.0 Tanzania 2.. .., ........,.,..... 8.6 6.6 7.4 6.6 7.2 7.4 7.4 logo .............................. 6.9 3.4 9.8 6.7 11.4 14.5 24.4 Uganda 2 ... . . . . ............ 8.3 4.5 3.7 2.9 3.0 2.2 7.4 Upper Volta .............................. 3.3 2.8 3.5 3.0 2.2 3.9 3.8 Zaire .............................. 8.5 12.4 15.1 7.5 8.3 8.2 9.1 Zamnbia .............................. 30.9 7.3 10.2 10.2 18.7 20.8 19.7 (con0nued) 25 J) 050 040 Cf co0 0O05t CSCS 04 05 05 CO 04 04 4 50 0 .- 04 0 0405 m 0<0040 ll 'j 04f~ o00 S04445400000 000504000 - 1 -e 04O 0 0 40 0 O 4 . 00 05 - ) Ci rc ooooc , > 1o (041s 1) SO N _4 >0 CS tDwi o ocn1rCS 0050 oo 0440 000445 4550 CX 050 Cl o5 00 > cS ( o 0n 0N o5 n5 ~ ~ ~ ~ ~ ~ ~~~~~~.. . . . . . . ,: ^ crn~~~~~~~d . . . . . . . . . . . . . . . . . . . . ........ X Q ~ ~~~ ~~~~~ . . . . . . . . . '. '. . ', . . . '. '. . . . . .-. .. . .'.' 04 04 . . C : . . . . . . . . , . . . . . . .. ,.... . . < x O a5~~~~~~~~~~~~= ... .. .. . .. . . .......... 050040504 = .0 . . . ...0.0.04 0 . .0.5.0 . .4.0.4.0.0 . . - - - 0405 0004 l - - 16 E V i O ~~~~~~~a R ,Oe<<=X@F 2~~~~~~~~ZT2 C., 'C 050500500005005 000055 0050-0 045 ~ 054 004005 0450 SON 7 - oc -)C- - c CIC u W ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 00 444f Statistica Annex 139 Table 4 Service payments as percentage of exports of goods and services Region Country or other area 1973 1974 1975 1976 1977 1978 1979 North Africa and Middle East Algeria ................................ 12.2 12.7 8.7 13.0 15.3 20.4 25.6 Bahrain ................................ 0.1 0.1 0.1 0.3 0.3 0.3 0.3 Egypt, Arab Republic of .......... ........... 40.2 21.7 22.5 18.5 24.2 22.3 15.8 Jordan ................................ 4.9 4.0 3.6 2.7 3.2 4.1 5.3 Lebanon ............................... 11 0.9 0.9 1.0 0.8 0.8 n.a. Morocco ................................ 8.3 5.5 5.7 7.2 10.8 18.7 21.8 Oman ................................ n.a. n.a. 2.4 2.2 5.0 8.5 9.2 Syrian Arab Republic ........... ............ 7.4 6.4 7.9 7.7 7.3 20.8 16.5 Tunisia ................................ 10.6 6.7 6.9 7.0 9.5 10.9 11.8 Yemen Arab Republic . ................. - 4.7 1.2 0.5 0.3 1.0 1.8 Yemen, People's Democratic Republic of ............................. 0.1 0.1 0.2 0.0 0.1 0.5 2.8 South Asia Afghanistan ........... ................ 18.1 16.0 9.2 7.9 8.4 13.7 n.a. Bangladesh ............................. 2.4 5.6 16.2 12.7 10.4 11.8 8.4 Burma I ................................ 26.2 12.8 17.5 16.7 13.6 15.4 22.0 India ................................ 18.7 16.4 12.4 10.3 9.3 9.6 9.5 Maldives ............................... - - - 0.2 0.3 0.4 Nepal ................................. 1.7 2.3 4.0 1.0 1.7 1.4 1.4 Pakistan `. ... ................ 14.7 13.5 15.6 14.7 13.6 12.2 12.0 Sri Lanka ............................... 12.8 12.0 21.8 20.1 14.5 9.2 6.5 More advanced Mediterranean countries Cyprus ................................ 1.9 2.2 3.2 3.1 3.1 3.8 4.4 Greece ................................ 8.5 8.7 10.5 9.7 9.1 8.4 8.4 Israel ................................ 16.0 15.5 18.3 11.4 11.0 7.8 10.3 Malta ................................ 0.4 0.7 0.6 0.4 0.3 0.3 0.4 Portugal ................................ 2.3 1.9 2.7 2.8 3.1 4.0 5.3 Spain ................................. 3.3 2.4 2.7 3.3 4.5 10.1 5.6 Turkey ................................. 6.8 6.7 7.9 8.1 10.2 10.7 12.9 Yugoslavia .............................. 5.4 5.3 5.5 3.3 3.9 3.4 4.2 NOTE: Debt serv ce ratios are based on debt service actually paid and not on contractual serv ce due. Information on the sources, definitions, coverage, and Interpretation of the data is given in the "Genera Notes to Annex Tab es." i Because of specia: monetary arrangements peculiar to countries such as this, the debt service ratio must be regarded with more than usual caution in considering the country's external finarcia situation. 2 ncludes a not onal share of debt service payments on oans to the East African Community: Kenya-50%. Tanzania-40%, Uganda-10%. 3 Reflects contractua debt service due prior to rescheduling. o Service saymerts for these years reflect prepaymerts Debt data are for fiscal years. 6Includes figures up to 1974 relat ng to debt subsequentlytaken over by Bangladesh. n.a.: not ava able Source Word Bankand IMF Projected Debt Service on External Public Debt Outstanding, by Region and Type of Creditor, as of December 31, 1979 Table 5 A J ~~~~~~~~~~~~~~~~~~~~~~~~~~~CD (US$ millions) Debt out- standing (including Projected debt service _ Region undisbursed) P c e r Type of creditor December 31, 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 O Africa South of the Sahara Bilateral official . ......................... 16,139.3 1,064.0 1,249.1 1,295.5 1,383.2 1,371.6 1,325.6 1,286.7 1,131.7 1,065.8 990.3 o Multilateral ......... .................. 12,261.0 468.4 544.1 619.5 719.7 839.5 919.7 924.0 902.3 878.8 821.0 Private Suppliers .... 3,673.1 742.2 718.5 624.2 502.5 399.7 323.8 248.6 152.4 94.4 60.8 Banks . .................... 11,824.3 2,418.7 2,707.2 2,753.6 3,004.3 2,669.1 2,127.1 1,621.4 1,127.1 642.4 363.6 Other . ............................. 125.7 34.9 21.7 28.1 32.3 12.0 3.5 2.7 2.2 4.0 1.6 Total .................. ..... . . 46,023.4 4,728.2 5,240.6 5,320.9 5,642.1 5,291.8 4,699.7 4,083.5 3,315.7 2,685.4 2,237.3 East Asia and Pacific Bilateral official ...................... .. . 21,540.3 1,385.5 1,515.2 1,626.7 1,795.7 1,835.3 1,894.3 1,828.8 1,693.7 1,559.7 1,530.3 Multilateral ........................... . 14,890.4 809.7 991.2 1,198.5 1,383.6 1,547.8 1,631.4 1,629.2 1,592.6 1,537.8 1,459.5 Private Suppliers ........................... . 7,051.3 1,819.6 1,306.4 1,247.5 1,157.4 1,010.5 877.2 615.8 456.5 376.4 268.6 Banks ............................ . 22,193.2 3,725.8 4,240.7 4,593.1 4,403.8 4,119.2 3,635.5 3,178.2 2,379.7 1,729.8 1,028.4 Other ............................. . 2,158.4 215.3 262.8 280.2 303.4 421.5 259.1 169.4 227.9 277.8 255.8 Total ....................... . . 67,833.5 7,956.0 8,316.3 8,946.0 9,043.9 8,934.3 8,297.4 7,421.3 6,350.4 5,481.6 4,542.7 Latin America and the Caribbean Bilateral official ............. .......... . 18,740.3 2,113.1 2,214.4 2,282.2 2,103.6 2,171.3 1,859.9 1,657.1 1,462.4 1,221.1 993.1 Multilateral ..................... ... . 24,180.1 1,612.7 1,937.2 2,240.8 2,488.5 2,593.7 2,613.2 2,605.1 2,496.2 2,383.7 2,240.3 Private Suppliers ........................... . 10,514.7 1,884.0 1,801.3 1,749.6 1,496.4 1,293.3 1,057.1 849.2 702.1 554.9 463.3 Banks ............................... 82,460.0 19,575.5 20,713.6 16,807.9 15,809.0 14,163.8 12,383.3 10,294.3 8,559.2 7,450.3 4,617.1 Other ............................... 9,498.7 1,461.6 1,235.2 1,834.1 1,319.9 2,077.8 1,196.9 1,242.4 1,228.9 737.6 579.5 Total . . . .... 145,393.8 26,646.9 27,901.6 24,914.7 23,217.3 22,299.8 19,110.5 16,648.2 14,448.8 12,347.5 8,893.4 North Africa and Middle East Bilateral official ..................... .. . 25,552.2 1,636.0 2,079.5 1,996.1 2,197.0 2,302.4 2,172.4 1,993.4 1,941.8 1,750.4 1,678.7 Multilateral ......................... .. 8,711.3 433.5 514.0 850.8 914.7 999.0 1,038.9 1,015.8 984.7 666.8 609.6 Private Suppliers ............................ 7,285.7 1,905.7 1,529.9 1,334.0 1,116.1 904.5 720.4 507.1 326.9 200.6 130.0 Banks . ............................. 19,317.6 3,427.2 3,804.1 4,038.7 4,016.3 3,593.9 2,892.3 2,164.7 1,620.5 1,280.8 914.3 Other .............................. 735.2 109.9 129.8 195.1 167.9 122.0 96.5 68.8 55.0 66.9 27.8 Total ........................... 61,602.1 7,512.4 8,057.4 8,414.7 8,412.0 7,921.9 6,920.5 5,749.8 4,928.8 3,965.6 3,360.5 South Asia Bilateral official ..... .................. 25,406.6 1,427.4 1,481.9 1,550.7 1,617.3 1,586.0 1,610.2 1,611.3 1,574.3 1,498.9 1,446.8 Multilateral ............................ 15,508.3 316.8 333.4 363.6 409.1 500.0 540.8 558.5 576.7 586.3 571.8 Private Suppliers ............................. 824.3 199.4 172.3 153.4 120.3 86.3 68.7 50.7 33.7 29.9 25.3 Banks ............................... 698.2 119.8 127.5 124.5 121.5 109.4 87.5 71.6 48.8 36.4 31.8 Other ........... ................ . 2.2 0.1 0.1 0.1 1.2 1.1 0.0 0.0 0.0 0.0 0.0 Total ............. ............. 42,439.6 2,063.5 2,115.2 2,192.4 2,269.4 2,282.8 2,307.2 2,292.2 2,233.5 2,151.5 2,075.8 More advanced Mediterranean countries Bilateral official ..... ................... 20,438.2 2,566.2 2,623.5 2,457.0 2,474.3 2,197.3 2,034.8 1,733.9 1,388.9 1,221.0 1,053.1 Multilateral ... ........................ 7,465.0 577.8 715.1 861.3 983.7 958.7 867.7 843.9 799.5 730.0 692.9 Private Suppliers ............................. 1,375.8 262.6 272.5 255.2 188.1 160.7 140.7 122.1 102.1 91.5 61.0 Banks ...... ........................ 17,832.4 3,533.3 3,717.9 3,758.9 3,968.8 3,699.1 3,230.7 2,258.1 1,370.9 1,095.8 661.2 Other ............................... 4,238.1 485.7 557.2 713.9 517.5 515.8 311.8 370.4 358.9 533.3 326.9 Total ......................... . 51,349.5 7,425.5 7,886.3 8,046.3 8,132.4 7,531.6 6,585.7 5,328.5 4,020.2 3,671.6 2,795.1 All developing countries Bilateral official . . ..................... . . 127,816.8 10,192.2 11,163.5 11,208.2 11,570.9 11,463.9 10,897.2 10,111.3 9,192.7 8,316.9 7,692.3 Multilateral .......................... . 83,016.1 4,218.9 5,034.9 6,134.6 6,899.4 7,438.8 7,611.7 7,576.6 7,351.9 6,783.4 6,395.2 Private Suppliers ........................... . 30,725.0 6,813.6 5,801.0 5,363.9 4,580.7 3,855.0 3,187.9 2,393.5 1,773.7 1,347.8 1,009,1 Banks ............................... 156,325.7 32,800.2 35,311.1 32,076.8 31,323.8 28,354.5 24,356.4 19,588.4 15,106.2 12,235.5 7,616.5 Other . 16,758.3 2,307.5 2,206.8 3,051.5 2,342.3 3,150.1 1,867.7 1,853.7 1,872.9 1,619.6 1,191.7 Total . .414,641.8 56,332.4 59,517.3 57,834.9 56,717.1 54,262.3 47,921.0 41,523.4 35,297.4 30,303.2 23,904.8 NOTE Information on the sources, definitions. coverage. and interpretation of the data is given In the 'GeneraI Notes to Annex Tables!" tems may riot add to totals due to roinding. 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C 00.400 - 00 00 cc c a) a).4 a 000000 C C - -o 0000 0~-cOC a).C.0000000 Foreign and International Bond Issues, by Borrower Entity, 1978-80 and First Half 1981 Table 8 l (US$ millions) Foreign and international bond issues 1: year and type of bond 1978 1979 1980 First half 1981 (P) _.i 0 Inter- Inter- Inter- Inter- 0 Foreign national Foreign national Foreign national Foreign national Category of borrower entity bonds bonds Total bonds bonds Total bonds bonds Total bonds bonds Total > Industrialized countries Australia . 989.8 476.9 1,466.7 595.3 140.0 735.3 235.6 278.9 514.5 127.0 60.0 187.0 Austria ... 932.2 441.0 1,373.2 762.2 401.1 1,163.3 970.8 1,069.9 2,040.7 501.2 241,2 742.4 Belgium 38.4 38.4 - 303.3 303.3 34.4 300.0 334.4 69.0 186.6 255.6 Canada . 3,929.5 828.4 4,757.9 2,725.8 1,404.9 4,130.7 1,460.7 1,380.0 2,840.7 1,179.0 1,888.5 3,067.5 Denmark h . . . 541.1 412.8 953.9 463.5 223.7 687.2 551.5 437.6 989.1 108.3 126.7 235.0 Finland .... 673.3 334.1 1,007.4 314.7 381.7 696.4 130.4 190.5 320.9 270.9 33.4 304.3 France ... . . 528.7 774.6 1,303.3 739.7 1,309.7 2,049.4 429.7 1,933.1 2,362.8 596.7 1,278.2 1,874.9 Germany 20.................... . 323.7 344.5 127.5 351.9 479.4 157.3 157.3 61.2 50.0 111.2 Iceland .. .. .. 24.7 ... -- 24.7 - 10.0 10.0 -- - 36.1 - 36.1 Ireland . . . .. . 83.3 83.3 70.0 110.0 180.0 279.1 50.0 329.1 - 200.0 200.0 Italy ..9 0 . 4 ............. 90.4 135.0 225.4 72.2 279.1 351.3 102.2 778.9 881.1 - 390.4 390.4 Japan ......3.. . ...........1,294.3 1,499.6 2,793.9 2,781.9 1,404.0 4,185.9 1,955.7 1,745.8 3,701.5 1,045.1 978.9 2,024.0 Liechtenstein . .13.1 13.1 21.5 . 21.5 - 15.6 15.6 Luxembourg .180.................. . 265.2 445.5 36.8 67.8 104.6 55.4 45.8 101.2 74.5 14.5 89.0 Netherlands .173.................. 1. 228.3 401.4 502.2 512.1 1,014.3 257.5 1,127.6 1,385.1 143.2 198.0 341.2 New Zealand . .... ............313.1 425.4 738.5 330.6 221.8 552.4 122.4 168.1 290.5 208.8 -- 208.8 Norway ......8.. . ...........1,503.8 1,120.5 2,624.3 1,022.4 1,015.1 2,037.5 358.7 465.5 824.2 142.3 57.6 199.9 Sweden ....4.... . ..........499.4 241.9 741.3 957.1 614.4 1,571.5 1,294.7 1,237.7 2,532.4 630.1 247.0 877.1 Switzerland ................. .- 84.0 84.0 _ 314.9 314.9 368.4 368.4 United Kingdom ...............671.6 805.3 1,476.9 268.4 968.7 1,237.1 98.2 1,684.4 1,782.6 30.5 305.0 335.5 United States .................374.3 1,293.8 1,668.1 156.7 2,571.5 2,728.2 205.5 4,307.4 4,512.9 267.3 2,371.2 2,638.5 Tota . .12,87 52 99 05 22,565.7 11,948.5 12,605.7 24,55 42 8,699.8 17,569.6 26,269.4 5,506.8 8,627.2 14134.0 Developing countries or other areas Algeria ..................... 170.8 558.1 728.9 52.8 130.0 182.8 Argentina ............. ...... 67.7 198.7 266.4 154.2 262.4 416.6 138.9 25,0 163.9 - 70.0 70.0 Brazil ...................... 395.4 540.7 936.1 371.3 364.3 735.6 91.7 224.5 316.2 45.3 - 45.3 Chile ...................... - 50.0 50.0 48.5 35.0 83.5 - 82.2 82.2 - 30.0 30.0 Colombia .- .- - - 55.0 55.0 Costa Rica ................... - 20.0 20.0 - - 12.1 97.2 109.3 Ecuador ..................... - 62.0 62.0 - - - - Egypt, Arab Republic of ....... ... - 25.0 25.0 - - - - 30.0 30.0 El Salvador .................. - 25.0 25.0 - - Haiti .- - - 8.0 8.0 - Hong Kong ................... - - - -- - 20.0 20.0 India ..................... - - - _ 30.0 30.0 - Indonesia ...... ............. 50.0 54.2 104.2 37.3 25.4 62.7 45.8 -- 45.8 46.5 46.5 Iran ..................... 43.2 25.4 68.6 - - Israel ..................... 306.0 120.0 426.0 237.4 200.0 437.4 325.5 130.0 455.5 - 7.0 7.0 Ivory Coast .- - - 14.1 - 14.1 - Korea, Republic of .............. 56.0 56.0 - 43.6 43.6 4/.8 47.8 30.0 30.0 Kuwait ....61.6 61.6 Malaysia .... ........ ..... 119.7 20.0 139.7 122.4 30.0 152.4 Mexico ..................... 341.6 345.9 687.5 138.0 225.0 363.0 56.2 265.0 321.2 108.9 735.0 843.9 Morocco ...91.5 91.5 - 21.8 21.8 23.2 - 23.2 _ - Panama ..................... 43.2 171.9 215.1 60.7 50.0 110.7 - 25.0 25.0 Philippines ............... ... 141.2 74.8 216.0 76.2 100.0 176.2 - 66.8 66.8 Portugal ................... - - -- 30.0 30.0 Saudi Arabia - -- 14.7 14.7 Singapore 25.0 25.0 -- 25.0 25.0 - - 34.9 34.9 South Africa ..... . .......... 338.0 143.9 481.9 232.6 11.0 243.6 155.7 215.1 370.8 92.0 92.0 Spain .... . .......... . 181.8 141.9 323.7 356.8 124.2 481.0 283.9 157.2 441.1 63.9 100.0 163.9 Thailand ..... . .......... 44.2 24.6 68.8 46.2 130.0 176.2 45.9 - 45.9 Trinidad and Tobago .u.... ...... . 113.1 36.9 150.0 Tunisia 25.7 25.7 -- - - - Venezuela .... . ........... 307.4 382.3 689.7 153.6 153.6 - 131.5 131.5 195.8 - 195.8 Yugoslavia .............. .. 46.7 80.0 126.7 46.3 50.0 96.3 12.2 25.0 37.2 - Talwan, China .............. . - 20.0 20.0 29.8 - 29.8 - 25.0 25.0 __ - Total .....................-2,766.0 3,325.1 6,091.1 2,025.2 1,989.3 4,014.5 1,205.2 1,662.3 2,867.5 552.4 1,026.9 1,579.3 3 Centrally planned countries n Hungary ................... - --- - - 50.0 50.0 - -> Poland . . . .... ... .30.0 30.0 18.1 30.0 48.1 - - - , Total ........... .. - 30.0 30.0 18.1 30.0 48.1 50.0 50.0 _- ( (contlnued) (cn Foreign and International Bond Issues, by Borrower Entity, 1978-8() and First Half 1981 (continued) Table 8 < (US$ millions) Foreign and international bond issues 1: year and type of bond U) 1978 1979 1980 First half 1981 (P) Inter- Inter- Inter- Inter- f 33 Foreign national Foreign national Foreign national Foreign national Category of borrower entity bonds bonds Total bonds bonds Total bonds bonds Total bonds bonds Total > (D International organizations x African Development Bank (AfDB) . - 40.0 40.0 - 108.3 108.3 - Asian Development Bank (AsDB) . .. 162.1 197.9 360.0 115.5 124.7 240.2 219.9 106.8 326.7 108.5 69.7 178.2 Central American Bank for Economic Integration (CABEI) - - 12.5 20.0 32.5 - - Council of Europe .103.5 126.5 230.0 118.6 122.4 241.0 136.8 - 136.8 79.3 - 79.3 European Atomic Energy Community (Euratom) 44.4 44.4 84.7 86.1 170.8 11.6 - 11.6 14.1 102.7 116.8 European Coal and Steel Community (ECSC) .363.0 492.2 855.2 262.1 425.9 688.0 274.2 532.4 806.6 169.2 40.0 209.2 European Economic Community (EEC) - - 125.0 125.8 250.8 - 191.0 191.0 - 90.0 90.0 European Investment Bank (EIB) . . 1,097.9 1,053.0 2,150.9 1,152.6 968.2 2,120.8 1,559.9 736.3 2,296.2 403.0 227.1 630.1 International Bank for Reconstruction and Development (IBRD) 3,796.0 700.0 4,496.0 3,567.6 774.0 4,341.6 3,268.5 1,493.0 4,761.5 1,017.2 1,017.9 2,035.1 Inter-American Development Bank (IDB) .139.3 74.0 213.3 370.9 - 370.9 326.0 326.0 233.8 50.8 284.6 Nordic Investment Bank (NIB) ....._- 35.0 35.0 30.3 75.2 105.5 20.4 20.4 - 64.6 64.6 Total.5,706.2 2,118.6 8,424.8 5,839.8 2,830.6 8,670.4 5,796.9 3,079.9 8,876.8 2,025.1 1 ,662.8 3,687.9 Others Eurofima I . 140.8 151.6 292.4 117.2 218.2 335.4 51.4 144.0 195.4 127.4 127.4 Unallocated borrowers I 53.9 24.0 77.9 16.3 125.6 141.9 - - _30.0 30.0 Total .194.7 175.6 370.3 133.5 343.8 477.3 51.4 144.0 195.4 12/.4 30.0 157.4 Recapitulation Industrialized countries .12,875.2 9,690.5 22,565.7 11,948.5 12605.7 24,5'4. 2 8,699.8 12,)569.6 26,269.4 5,506.8 8,621.2 14.134.0 Developing countries or other areas. 2766.0 3,325.1 6,091.1 2 025.2 1989.3 4,014.5 1,205.2 1.662.3 2,867 .5 552.4 1.026.9 1,579.3 Centrally planned couLntries 30.0 30.0 18.1 30.0 48.1 50.0 50.0 - International organizations 5,706.2 2,718.6 8,424.8 5,839.8 2,830.6 8,670.4 5,796.9 3,079.9 8,876.8 2,025.1 1,662.8 3,687.9 Others .194.7 175.6 370.3 133.5 343.8 477.3 51.4 144.0 195.4 127.4 30.0 157.4 GRAND TOTAl 21,542.1 15,939.8 37,4819 19,965.1 17,799.4 37,764.5 15,753.3 22,505.8 38,259.1 8,211.7 11,346.9 19,558.6 i Includes both puiblic offerings and private p acerferds. 2 Societe EUropvenne pour le Financeoieit de Mater el Ferroviaire. 3 Includes the following corporationis: Barico Latinoamericano de Exportac,olues S.A.; Iltershop Overseas Finance (Curayao) NV.; Megal Finance Co., Ltd.; Private Investment Co.. for Asia, SA.; Scandinavian, Anines System (SAS), TraoTs Austria Gaslirie Finance Co., Ltd. (P) Preliminiary. Source; World Bank. Statistical Annex 147 Publicized Eurocurrency Credits by Borrower Entity, Table 9 1978-80 and First Half 1981 (US$ millions) Publicized Eurocurrency credits First half Category of borrower entity 1978 1979 1980 1981 (P) Industrialized countries Australia ... .............................. 799.2 561.0 1,367.9 2,247.2 Austria .................. ............ 150.0 - - - Belgium .................................... 40.0 1,000.0 2,350.0 Canada ................................... 9,580.6 946 0 3,287.8 200.0 Denmark ................................... 2,334.6 1,210.7 1,324.5 982.8 Finland ................................... 550.5 42 0 1,090.0 236.8 France ......... ........................... 2.475.0 2.735.0 1,959.5 2,250.0 Germany .................................... - 149.0 33.0 Iceland .................................... 70.0 154.8 35.0 60.0 Ireland ........... ................. 676.2 739.6 386.6 551.9 Ita y . .................. 2,808.4 3,414.6 6,176.8 2,956.5 Japan ..................................... 86.2 262.0 30.0 Liechtenstein . ............................. 6.1 Luxembourg ................................. - 55.8 30.0 Netherlands ......................... ....... 1,090.0 303.3 288.0 13.4 New Zealand ................................. 460.0 15.0 715.0 Norway ..................................... 1,175.4 1,174.6 852.7 137.8 Sweden .................... ................ 1,861.0 1,318.6 1,298.7 1,400.0 United Kingdom .......4...... . . 4,721.7 1377.0 954.3 271.1 United States ................................. 2,464.7 3,844.8 7,489.0 1,081.8 Total ...... 31,343.5 19,041.8 29,867.8 12,458.4 Developing countries or other areas Algeria ..................................... 2,068.4 1,708.3 303.0 Angola ..................................... - - _ 30.0 Antigua .................................... 10.0 - - Argentina . ................................. 1,273.0 2,122.8 2,289.8 1,457.0 Bahamas ................................... - - 35.0 15.0 Bahrain .................................... 60.0 70.0 328.5 Barbados ................................... 10.0 - - Bermuda .................................... - - 47.5 Bolivia ..................................... 227.0 47.0 Botswana ................................... 45.0 - Brazil ..................................... 5,110.7 5,833.8 4,415.0 1,973.0 Burma ..................................... 10.0 26.9 56.9 120.0 Cameroon ................................... 9.0 58.8 - Chile ..................................... 1,145.0 810.0 899.0 948.7 China ..................................... - 2,995.0 480.9 Colombia .... .............................. 85.0 888.5 727.9 580.0 Costa Rica ........... ....... ..... 220.8 172.0 157.0 Cyprus ..... .............................. 85.0 - 141.1 15.0 Dominican Republic ..... ...................... 60.0 195.0 160.0 Ecuador ..... ............................. 252.1 935.5 711.6 260.0 Egypt, Arab Republic of .......................... 63.5 6.5 186.3 18.0 Ethiopia .................................... - 14.0 - Fiji ..................................... - 36.0 - - Gabon ..................................... 86.0 100.0 100.0 Ghana ..................................... 21.5 - 4.2 Greece ..................................... 569.9 1,034.0 1,174.4 600.0 Guatemala .................................. - - - 54.0 Guinea ... ................................. 15.0 45.0 - Honduras .... . . ............. . -- 93.0 - 24.2 Hong Kong ................................. . 629.0 788.7 597.4 202.0 (continued) 148 Statistical Annex Publicized Eurocurrency Credits by Borrower Entity, 1978-80 and First Half 1981 (continued) (US$ millions) Publicized Eurocurrency credits First half Category of borrower entity 1978 1979 1980 1981 iP) Developing countries or other areas 'continued) India .................................... 55.0 50.0 60.7 880.0 Indonesia ................................... 1,622.7 670.4 1,079.5 442.5 Iran .................................... 1,132.0 - - - Iraq ................................... 184.5 - - - Ivory Coast ................................. 159.4 137.3 350.0 427.7 Jamaica ................................... - 126.0 - 173.0 Jordan .............................. ..... 110.0 118.0 150.0 - Kenya ................................... - 212.0 10.0 - Korea, Republicof ........ot..................... 1,699.0 2,589.5 1,903.4 688.2 Kuwait ................................... 186.0 19.4 72.3 141.6 Lebanon ................. ...... ... 155.0 - - 70.0 Lesotho ............. ..................... - 10.0 10.0 - Liberia ................................... 60.0 27.8 - - Macao .................u... - - - 15.0 Madagascar ................................. 29.6 26.3 5.5 - Malawi ................................... 12.0 50.0 11.5 - Malaysia ............... ...... ...... 1,077.0 197.3 1,350.0 545.0 Mauritania ........ ...... ...... 18.0 - - - Mauritius ................................... - 50.0 45.0 - Mexico ................................. . 6,553.7 7,654.5 5,017.0 2,328.5 Morocco ...... ............................ 620.0 450.0 450.0 40.0 Mozambique ................................ - - 20.0 - Nauru, Republic of ........... . ........... .. ...... 25.0- Netherlands Antiles ....................... .. - - 32.0 40.0 Nicaragua .................................. 15.0 - - - Niger ................................... - 37.0 13.0 - Nigeria ................................... 1,750.0 1,116.1 632.6 1,114.0 Oman ............................. - 150.0 - - Pakistan ................................... 6.0 150.2 50.0 5.5 Panama ................................... 553.5 155.0 225.0 145.0 Papua New Guinea ............ .... 60.0 35.0 103.5 125.0 Paraguay ................................... - 7.0 - - Peru ................................... - 525.4 210.0 405.0 Philippines .................................. 1,872.0 1,672.5 1,121.1 404.6 Portugal ................................... 641.2 811.0 706.0 1,100.0 Qatar ................................... 275.0 - - - Saudi Arabia ...... ........ .. .... 179.9 258.0 242.9 - Senegal ...... ...................... 60.0 - - 7.5 Singapore ................................... 100.0 149.3 50.0 70.0 South Africa .................................. - 52.1 325.0 - Spain .................................... 2,200.2 3,632.0 4.348.5 2,427.3 Sri Lanka ................................... - 50.0 53.3 99.0 Sudan .................................... 9.5 Swaziland ................................... 28.0 - Tanzania ............ ......... ...... - 12.0 - - Thailand ................................... 205.5 200.0 824.6 330.0 Trinidad and Tobago .......... .. .. .... .... - 39.0 301.0 - Tunisia ................................... 195.0 154.2 11.7 Turkey .................................... 350.0 532.0 - - United Arab Emirates .................. ..... 706.2 383.6 92.5 8.0 Statistical Annex 149 Table 9 Publicized Eurocurrency credits First half Category of borrower entity 1978 1979 1980 1981 (P) Developing countries or other areas (continued) Uruguay .............................. 230.0 40.0 116.0 80.0 Venezuela ............................ .. 2,050.7 3,237.9 2,897.8 364.9 Viet Nam .................................... 66.3 - - - Yemen Arab Republic ............. .............. 17.0 23.0 Yugoslavia .............................. 744.8 1,647.1 1,781.0 137.0 Zambia .................. ............ - 12.8 - Zimbabwe ............................ .. - - 28.6 111.8 Taiwan, China .......... .... ................ 176.9 803.7 456.5 158.0 Total .............................. 38,247.5 46,255.2 37,673.0 19,181.0 Centrally planned countries and organizations Bulgaria ............................... 239.0 409.9 - Cuba ................ .............. 16.8 116.2 - Czechoslovakia ............................ 150.0 450.0 475.0 German Democratic Republic ............. ....... 782.0 636.0 276.0 300.0 Hungary ............................... 515.0 550.0 550.0 550.0 International Investment Bank .. . .............. . 500.0 875.0 Poland .................. ............ 374.0 819.1 338.2 Romania ............................ 725.3 280.0 458.0 285.0 USSR ... ........................ 400.0 320.0 - - Total 3,702.1 4,456.2 2,097.2 1,135.0 International organizations African Development Bank (AfDB) ................... 150.0 275.0 408.0 CentralAmerican BankforEconomic Integration (CABEI) ... 31.7 20.0 25.0 Corporaci6n Andina de Fomento (CAF) ................ - - 50.0 European Coal and Steel Community (ECSC) ...... ...... - 15.0 17.4 Nordic Investment Bank (NIB) ......... ............. - - 30.0 _ Total .............................. 181.7 310.0 530.4 - Others Unallocated borrowers I ................... ...... 220.0 186.2 218.0 Total .220.0 186.2 218.0 __ Recapitulation Industrialized countries ........... ............. 31,343.5 19,041.8 29,867.8 12,458.4 Developing countries or other areas ............... . 38,247.5 46,255.2 37,673.0 19,181.0 Centrally planned countries and organizations ........ . . 3,702.1 4,456.2 2,097.2 1,135.0 International organizations ...................... . 181.7 310.0 530.4 Others.. ............................ 220.0 186.2 218.0 _ GRAND TOTAL ......................... . 73,694.8 70,249.4 70,386.4 32,774.4 Incduces the fol.ooAng coroorat;ons: Adela International Frnarcirg Company, S.A Alufinance and Trade L.m ted: Gulf Aviatior Company L m.ted; Gult Helicopters; Megal F nance Company Lim ted; Scandinavian Airl nes System (SAS): Sunny Rock Sh pping Incorporated, Transmediterrarear Pipeline Company Limted; United Arab Soi ppingCompany. (P) Prel minary Source World Bar,. 150 Statistica Annex Average Terms of Eurocurrency Credits for Selected Developing Table 10 Countries, Third Quarter 1979 to Second Quarter 1981 (Weighted by amount of loan) Average spread (percentage) 1979 1980 1981 Countries III IV I 11 III IV I II Algeria ........................... - 1.06 0.88 - - - - - Argentina .......................... 0.78 0.76 0.56 0.62 0.67 0.63 0.77 0.81 Brazil ........................... 0.86 0.72 0.79 0.99 1.15 1.79 1.83 2.09 Chile ........................... 0.85 0.92 0.95 1.00 0.94 0.93 0.80 0.82 Colombia .......................... 0.73 1.25 0.74 - 0.82 0.80 0.64 0.67 Greece ........................... 0.55 0.51 0.68 0.63 0.63 0.48 0.50 0.44 Indonesia .......................... 0.68 - 0.82 0.83 0.79 2.21 0.56 1.75 Ivory Coast ......................... 1.63 1.50 1.40 - 1.44 1.50 1.47 Korea, Republic of ............ ........ 0.70 0.69 0.78 0.81 0.86 0.90 0.92 0.83 Malaysia ...........................1.00 - 0.49 - - --- - 0.44 Mexico ............................ 0.73 0.69 1.38 0.69 0.45 0.53 0.72 0.96 Morocco ........................... 0.96 - 0.96 - 1.05 1.05 - 1.07 Nigeria ........................... 1.01 1.00 1.00 - 0.95 0.91 0.90 0.87 Philippines ....................... . 1.01 0.92 0.80 - 0.78 0.88 0.90 1.01 Portugal ........................... 0.79 0.88 0.76 0.75 0.77 0.69 0.58 0.52 Romania ........................ . 0.66 - 0.63 0.71 - - 0.75 0.63 Spain ........................... 0.78 0.75 0.80 0.77 0.85 0.69 0.52 0.77 Thailand ............ ....... 0.64 - 0.77 - 0.81 0.87 0.69 0.56 Venezuela ........................ . 0.42 0.58 - 0.69 0.73 0.60 1.16 0.78 Yugoslavia ....................... . 0.89 0.98 0.88 1.11 1.15 1.23 1.25 1.25 Average maturity (number of years) 1979 1980 1981 Countries III IV I II III IV I It Algeria ............ . .......... . . - 9.2 10.0 9.0 - - - - Argentina ........... ............. . 11.6 10.4 7.4 6.3 6.9 7.7 7.2 8.8 Brazil ............................ 12.5 12.0 10.8 8.7 8.3 8.9 8.4 8.3 Chile ............................ 10.6 9.8 10.0 7.5 7.1 7.3 7.6 8.1 Colombia ........ 10.0 10.0 10.0 - 9.7 9.8 9.9 10.0 Greece ........................... 10.0 10.2 9.5 8.0 10.0 7.4 10.0 10.0 Indonesia .......................... 10.0 - 9.8 9.6 10.0 6.5 10.0 7.0 Ivory Coast ......................... 10.0 7.6 10.4 - 11.4 - 10.0 8.5 Korea, Republic of ................ 9.2 9.6 8.4 8.0 6.9 7.5 3.9 8.7 Malaysia ........................... 6.4 - 9.8 - - - - - 10.0 Mexico ........................... 9.3 8.8 8.2 7.7 6.3 7.0 8.1 8.9 Morocco .............. ............ 10.0 - 10.0 - 8.0 8.0 - 8.0 Nigeria ........................... 7.8 8.0 7.5 - 8.0 8.0 8.0 8.0 Philippines ......................... 12.9 10.9 11.7 - 8.0 7.8 8.0 8.3 Portugal ........................... 9.5 8.8 9.2 7.0 7.9 6.9 7.4 8.0 Romania .................... ...... 10.0 - 8.0 7.2 - - 8.0 4.0 Spain ........................... 9.5 9.6 9.5 7.7 8.0 8.8 6.7 7.1 Thailand ........................... 8.6 - 10.0 - 7.9 7.9 8.0 8.0 Venezuela .......................... 1.7 7.9 5.0 7.1 7.0 4.5 4.3 7.4 Yugoslavia ......................... 10.6 8.6 10.0 7.1 7.9 6.8 7.0 7.0 Source: World Bank. 151 Bank Appendices Financial Statements Page Appendix A Balance Sheet ............................... 152 Appendix B Statement of Income . .......................... 154 Statement of Accumulated Net Income ........ ....... 154 Statement of Changes in General Reserve ....... ...... 154 Appendix C Statement of Changes in Financial Position ....... ..... 155 Appendix D Summary Statement of Loans ........... .......... 156 Appendix E Summary Statement of Borrowings ........ ......... 159 Appendix F Statement of Subscriptions to Capital Stock and Voting Power .............................. 160 Appendix G Notes to Financial Statements ........... .......... 163 Report of Independent Accountants . .......................... 167 152 Bank Appendices Balance Sheet June 30, 1981 and June 30, 1980 Expressed in United States dollars (in thousands)-See Notes to Financial Statements, Appendix G Assets 1981 1-80 DUE FROM BANKS Unrestricted currencies (including interest-bearing demand deposits $165,088-1981, $213,140-1980) ........... .................... $ 276.394 $ 357,145 Currencies subject to restrictions-Note B .. 280,226 176,945 $ 556,620 534,090 INVESTMENTS-Note C Obligations of governments and their instrumentalities .................... $ 6,175,761 7,021,405 Time deposits and other obligations of banks and financial institutions ....... . 1,932,010 2,655,435 8,107,771 9,676,840 RECEIVABLE ON ACCOUNT OF SUBSCRIBED CAPITAL- Subject to restrictions-Note B Non-negotiable, non-interest-bearing demand obligations ..... . . . . . . . . . . . $ 489,675 497,272 Amount due on subscribed capital ........... .. .. . .. .. .. . .. .. . .- 81,428 Amounts required to maintain value ot currency holdings ........ . ....... . 1,310 1,950 490,985 580,650 RECEIVABLES-OTHER Sales of investment securities ................. .. .. .. ... . .. .. ... .. . $ 246 29,283 Accrued income on loans .................... .. ... .... ... . . .. . , 534,977 540,158 Accrued interest on investments ............... .. .. .. .. .. .. .. .. . . .. . 182,464 142,070 717,687 711,511 LOANS (See Appendix D) ................... ... .... .... ... .... ... . . $54,090,488 51,546,740 Less-Loans approved but not yet effective .......... ........... . . . . . 6,551,900 6,742,600 Effective loans (including undisbursed balance $21,580,777-1981, $18,110,545-1980) .......... ................ .... . 47,538,588 44,804,140 OTHER ASSETS Land and buildings-Less accumulated depreciation ($16,332-1981, $14,667-1980) ...................................... ....... .. $ 103,788 98,015 Unamortized issuance costs of borrowings ........... . . . . .. . . . . . . . .. . . . 157,131 146,503 Notional amounts required to maintain value of currency holdings-Note B .... . 432,125 513,417 Maintenance of value of capital subscriptions outstanding on loans, not yet due-Note B ....................... ... .... .... .... ... . . 1,276 1,384 Miscellaneous ...... .................. 182,168 116,076 876,488 875,395 $58,288,139 .$57,182,626 Financicl Statements 153 Appendix A International Bank For Reconstruction and Development Liabilities, Capital and Reserves 1981 1980 LIABILITIES Accrued charges on borrowings ..................................... 741,710 $ 802,524 Amounts required to maintain value of currency holdings-Note B . .. . 1,621 2,517 Notional amounts required to maintain value of currency holdings-Note B ..... 117,957 150,998 Accounts payable and other liabilities ................................ 117,309 111,674 Payable for investment securities purchased .......... 13,606 97,172 Due to International Development Association-Note E ........ ...... . 820,668 789,048 Undisbursed balance of effective loans (See Appendix D) ......I........... 21,580,777 18,110,545 Borrowings (See Appendix E) ....................l.............. .. $27,864,242 29,729,319 Less-Receivable under contracts . .... .. . . . . ... 66,444 61,786 Principal outstanding ........................... $27,797,798 29,667,533 Less-Net unamortized discounts and premiums ...... ..... ........... 41,101 32,216 27,756,697 29,635,317 CAPITAL AND RESERVES Capital stock (See Appendix F and Appendix G-Note B) Authorized capital (SDR 70,500,000-1981, SDR 70,500,000-1980) Subscribed capital (SDR 31,822,100-1981, SDR 30,171.800--1980) ...... $36,614,508 39,958,929 Less-Uncalled portion of subscriptions (SDR 28,639,890-1981, SDR 27,154,620-1980) ......................... ... . 32,953,057 35,963,036 3,661,451 3,995,893 Payments on accoant of pending subscriptions (See Appendix F) ............ 6,971 6,290 Special reserve-Note D ......0................................. 292,538 292,538 General reserve (See Appendix B and Appendix G-Note D) . .......... 2,566,731 2,600,209 Accumulated net income (See Appendix B) ............................. 610,103 587,901 $58,288,139 $57.182,626 154 Bank Appendices Statement of Income Appendix B International Bank for Reconstruction and Development For the fiscal years ended June 30, 1981 and June 30, 1980 Expressed in United States dollars (in thousands)-See Notes to Financial Statements, Appendix G July 1-June 30 1980/81 1979/80 Income Income from loans: Interest .1..... ...... ........ .. $L986,529 $1,800,996 Commitment charges ......................... ............................... 177,133 143,787 Income from investments-Notes C and G ........................C............... 813,255 834,498 Other income-Note G . .... .............. .. .....0.. .. ..... 22,135 20,249 Total Income 5..... .. ..... $2,999,052 $2,799,530 Expenses Interest on borrowings . . ...$2,104,068 $1,975,469 Administrative expenses-Notes F and G .............................. ....... .. 254,824 197,967 Bond issuance and other financial experses ............................ ............. 30,057 38,193 Total Expenses $2,388,949 $2,211,629 Net Income-Notes A and D $ 610,103 $ 587,901 Statement of Accumulated Net Income For the fiscal years ended June 30, 1981 and June 30, 1980 Expressed in United States dollars (in thousands)-See Notes to Financial Statements, Appendix G July 1-June 30 1980/81 1979/80 Accumulated net income at beginning of fiscal year .................................. S 587,901 $ 406,542 Allocation to General Reserve. (469,901) (306,542) Transfer to International Development Association-Note D 1118.000) (100,000) Net income for fiscal year 610,103 587,901 Accumulated net income at end of fiscal year $ 610,103 $ 587,901 Statement of Changes in General Reserve For the fiscal years ended June 30, 1981 and June 30, 1980 Expressed in United States dollars (in thousands)-See Notes to Financial Statements, Appendix G July 1-June 30 1980/81 1979/80 Balance at beginning of fiscal year $2.600,209 $2,205,577 Allocation of portion of accumulated net income .... 469,901 306,542 Translation adjustments-Notes A and D (503,379) 88,090 Balance at end of fiscal year $2 566,731 $2,600,209 F nancial Statemerts 105 Statement of Changes in Appendix C linterratienal Bank sol Financial Position Recorstruction and Development For the fiscal years ended June 30, 1981 and June 30, 1980 Expressed in United States dollars (in thousands)-See Notes to Financial Statements, Appendix G July 1-June 30 1980.81 1979,80 Funds Provided Operations Net income (See Appendix B) ..................... .................... 610,103 $ 587 901 Items not requiring or providing cash: Accrued income on loans and investments ............. ....... (35,213) (120 319) Accrued charges on borrowings and administrative expenses ........ . . . . . . . . (6.633) 114.402 Depreciation ...................... .......................... . 1.666 1,468 Amortization of discounts, premiums and bond issuance expenses ...... . . . . . . 29,342 25,95 1 Cash provided by operations ..... . ........... ............. $ 599,265 5 609,403 Borrowings (See Appendix E) .... ................. .l..... . . 4.969.189 5573 797 Adjustments of borrowngs outstanding as a result of currency depreciations and appreciations (See Appendix E) .................... . ... l. (4,111.291) 604.200 Repayments of loans to the Bank' . . . 1,440,710 1182.486 Sales of loans ..25,470 23.052 Capital 2: New subscriptions (16,503 shares-1981, 11,816 shares 1980) . . . . . . .5. .. .. . . 5 199.084 142,542 Adjustments as a result of depreciations and appreciations of the SDR in terms ot the United States dollar . ..... . ..... . . . (533 526) 110 426 Decrease (increase) in amounts required to maintain the value of currency holdings .. 48,104 140,083) Increase in restrcted currencies and receivables . ......... ........... . . (14 256) (89 951) (Decrease) increase in lendable capital .......... . .. . . .. . .. . .. . .. . ... .. . . (300 594) 122.934 Decrease in amounts receivable for investment securities traded .............. . . ..... 29,037 344 121 Other.. . . . . . . .......... .... . . 681 54 824 Total Funds Provided . . . . . . .............. . 2 646,467 $8 514 817 Funds Used Disbursements on loans .. .... .. . ........... . . . . . .. $ 5,171.239 $4,369,045 Adjustments of loans outstanding as a result of currency depreciations and appreciations. (4,440,843) 643,498 Retirement of borrowings (See Appendix E. 2,721,633 2.790,958 Translation adjustments-Notes A and D .0 ........ . ......... 503,379 (88,090) Decrease in amounts payable for investment securities traded 83 596 409,125 Payments on transfers to International Development Association 86 382 103,230 Other ...... . . ... ....... ... ..... . . .................. . . . .. 170.933 135.976 Total Funds Used .c......... .. .. .. .. .. .. .. . . . .. .. .. . . . . S 4,296 287 $8,363 742 (Decrease) Increase in Unrestricted Currencies and Investments. $(1.649,820) $ 151,075 'The doliar eqj va ents of loan prm 02 0 0 (0 0 02 N) 010202 01 I 01 02 .0. N) 02 0 01 0 0 (0 00  0 0) 005 , i,j , I I I 00 0.01 -. 00002 N) 0 C') 010 0.0)0 - a 0(0 .0. 000001 C') 0 0 * - U  tm-U 0 a 2' o 5003 C 0 N) ' 01 N) - 0. 0 02N) N) 0,-. N) 0 --N) 00 00 (0 COC-. -'N) N) (0 .-a- 01(0-N) CA 2'- 0 01 02a (0 (00000 CO 024t,-.40(0 (0 - CO 0 01'-' 00 N) N)(0(0.0.00010-401(0 >0 0(0-a 0100.a(0 (0 .a(00100102 02 -ii I i"   00 S a 0 0 -0. 0 0. 01 N) (0 10. N) N) 01 01 N) 02 0 0 0 01 01 0 0 02 01 -< 0 0 (0 0 C-  a 00.2' (Cl ao C .-2' 0 to-'. C, 300. m 00 0-(D N) L0 CC - N) N) N) 0 (0 _  '0 oCt 0 - - - at 0 (0 N) 0 (0 N) a 00 (0(0 -0. - N) (0 (001 N) (0 C-' . (0 002 '2' 'o  0.0 5-o o N)(0 00 I 00(01 CON) 00(002 N) (001 -4 -4 00* C') -0.20 0CC') C- 01(0011 00(0(0 02 - -'(0 (0 I 01021 '-01 010(0(0020 - 01 I I 0i (0 (00 (00 N) I 00101 C-00 N) 0)0.CD- -. 00. 0 V -t Y1 =0)> 3(.4 01 - - -- -m aS CCC 01 01 - N) N) a-CC-. -aN) 01 000 (00 N) 0200-N N) 10002 I CO N) .-) -.C CO N) 02 COo -a CCC-.C001 N) * C'-' Co 0 020 (0 I 001(0 I I I I 0 011 1011 I I I OOO 020) -.4 I 2.40101 00 I 01 000) 00.,- a00 0-. 0 0 U- a o 5> 'C:-  - - C-. - - - C-. U 0 0 -0. 0 (0 (0 (0 N) N) 02 0 (0 0 01 N) -a 0 .0. 01 N)N)C-0102C-'01 9.2' 01 - N) (0 01 00 02 - - CO (0 00 N) CO 01 -a N) (0 (0 - -a CO N) 01 N) (0 01 N) 02 (0 0 00(000 000 020 - 02 0 00 (0 02 -1- 0 02 02 - (0 N) -0. 02 (0 0 N) 0 00 N) 0 02 .0. - (0 02 02 - 01 01 02 0 0 - (0 01 0 01 01 C (0 (001 000 00C'- 00 000 -.4 - 0 Cc 0 C') -.4 & !- -a a 02C- -0.020 0 _ P 3C0 - - - - 0= N) -aN) 0 01N) CO N) - 01 02 C-ON) 0 01a-(00(000 CO -a- (0 CC N) N) 0 - N) 0 01 - (0 (0 -0. - N) 0 01 CCC N) (0 N) 0 N) 0 01 (0 02 02 00 01 CC 01 0 - 01 N) 0 01 N) 01 0. 0 2' 0 (0 N) OC-Oa--.---N).-- 01 (000 01 N) 02 0 02 (0 -0. 0 (0 N) - N) (0 (0N) (0 CO 02 01 00 (001 -a (0 -a 02 - -I 0 N) (0 01 CO CO 0 CO 01 0010 01(00 01 N) 0 0. (001 CO - 01 0 -0. N) 0 N) 0 N) -a (0(0 01 0 -0. - 0 N)N)C--0101C--' 00CC-CO (001000-aN) CO 02N)000102C-'0 N) -aoo oN) Cr .4o,boo,a-aoN)(0 _ 188 Bank/IDA Appendices Bank and IDA Cumulative Lending Operations, by Borrower or Guarantor, June 30, 1981 Expressed in United States dollars (in millions) Bank loans IDA credits Total Number I Amount Number I Amount Number 1 Amount Afghanistan ...... ................. - $ - 20 $ 230.1 20 $ 230.1 Algeria ............... ............ 25 1,201.0 - 25 1,201.0 Argentina .............................. 19 1,418.3 - 19 1,418.3 Australia ............................ 7 417.7 - 7 41 7.7 Austria .. ... ......... .... .. .. 9 106.4 - 9 106.4 Bahamas .............................. 2 17.0 - 2 17.0 Bangladesh 2 ........ .. 1 46.1 72 1,788.2 73 1,834.3 Barbados .............................. 4 33.0 - - 4 33.0 Belgium ............................... 4 76.0 - 4 76.0 Benin ................................. - - 14 129.4 14 129.4 Bolivia ............................... 14 299.3 14 104.8 28 404.1 Botswana .............................. 11 123.7 6 15.8 17 139.5 Brazil ............................... 104 6,157.7 - -- - 104 6,157.7 Burma ............................... 3 33.4 17 418.0 20 451.4 Burundi .... .......................... 1 4.8 18 141.2 19 146.0 Cameroon .............................. 24 350.3 15 253.0 39 603.3 Caribbean Region n ...... ............... 2 43.0 - 7.0 2 50.0 Central African Republic .. ................... - - 6 39.8 6 39.8 Chad 4 . .. .... . .... ..... ... - - 13 78.5 13 78.5 Chile ............................... 26 477.2 - 19.0 26 496.2 China 1............................... 100.0 - 100.0 1 200.0 Colombia ....... ...................... 92 3,311.4 - 19.5 92 3,330.9 Comoros .. .. ........................ - - 2 10.2 2 10.2 Congo, People's Republic of the ............... 3 76.0 7 57.6 10 133.6 Costa Rica ............................. 27 382.2 - 5.5 27 38 7.7 Cyprus ............................... 18 157.6 - 18 157.6 Denmark .............................. 3 85.0 - 3 85.0 Dominican Republic ............ .......... 12 260.0 3 22.0 15 282.0 East African Community 5 ................... 10 244.8 - 10 244.8 Ecuador .......................... .. 27 425.1 5 36.9 32 462.0 Egypt, Arab Republic of ............ ........ 26 1,214.0 26 981.2 52 2,195.2 El Salvador ............................. 18 216.1 2 25.6 20 241.7 Equatorial Guinea ........................ - - 1 2.0 1 2.0 Ethiopia .............................. 12 108.6 26 443.1 38 551.7 Fiji ............................... 8 83.7 - - 8 83.7 Finland ............................... 18 316.8 - - 18 316.8 France . ...................... 1 250.0 - 1 250.0 Gabon I ............................... 6 69.3 - -- 6 69.3 Gambia, The ...... .................. - - 8 27.4 8 27.4 Ghana 7 , 9 207.0 15 208.0 24 415.0 Greece ............................... 17 490.8 - _ 17 490.8 Guatemala ............................. 12 277.5 - _ 12 277.5 Guinea ............................... 3 75.2 9 112.0 12 187.2 Guinea-Bissau ...... ................ - - 2 15.8 2 15.8 Guyana ............................... 12 80.0 3 36.5 15 116.5 Haiti ............................... 1 2.6 13 131.2 14 133.8 Honduras ... .......................... 24 409.0 5 83.2 29 492.2 Iceland ............................... 10 47.1 - - 10 47.1 India ............................... 61 3,200.6 137 9,566.2 198 12,766.8 Indonesia ............................. 57 3,729.0 46 931.8 103 4,660.8 Bank! DA Appendices 189 Appendix 2 Bank loans [DA credits Total Number I Amount Number I Amount Number I Amount Iran ...... ........ ... 33 $1,210.7 - $33 $ 1 210.1 Iraq.... ......... . . . 6 156.2 - 6 156.2 Ireland . .... ...... ..... 8 152.5 8 152.5 Israe[ ..... ..... 11 284.5 - - 1 284.5 Italy . . . . . ......... 8 399.6 8 399.6 Ivory Coast ............... 34 681 6 1 7 5 35 689.1 Jarnaca ... ..... ....... . 25 344.0 - .- 25 344.0 Japan ........... ..... 31 862.9 - .3 1 862.9 Jordan . ... ........ .. . 6 125.0 15 85.3 2 1 210.3 Kenya . . .. ....... ..... 37 8 72.3 25 458.3 62 1,330.6 Korea, Republic of. ......... 56 3,338.5 6 110.8 62 3,449.3 Lao People's Democratic Republic . ...... - 3 32.0 3 32.0 Lebanon ............. ... 4 116.6 - 4 1 16 6 Lesotho.. ............. -- 12 2 02 12 20.2 Liberia ................. 20 136.0 7 48.0 27 184.0 Luxembourg ...... ..... 1 12.0 - 1 12 0 Madagascar .. ... .. ..... 5 32.9 20 300.5 25 333 4 Malawi . . . ........ 5 75.2 22 257 8 27 333 0 Malaysia . ................ 52 1,314.6 -- 52 1,314.6 Maldives .... . . . ........... - 1 3.2 1 3.2 Madi'8................ 1.9 20 193.9 20 195 8 Malta .......... ... . .. 1 7 5 _ 1 1.5 Mauritania .. ..... .... 2 126.0 11 61.5 13 187 5 Mauritius . . . ........... 12 110.3 4 20.2 16 130 5 Mexico ................. 69 5,194.6 -- 69 5,19L 6 Morocco . . ......... ..... 45 1,660.3 3 50 8 48 1,711 1 Nepal .. . . ............ -- - 26 297 9 26 2397 9 Netherlands ................ 8 244. - - 8 244.0 New Zealando . ........... 6 126.8 - - 6 126 8 Nicaragua ... . .... ....... 26 217.6 4 60.0 30 227 6 Niger . ........ ....... - - 16 158.4 16 158 4 Nigeria ............ . . 44 1,701.7 2 35.5 46 1,73 7 2 Norway ... .. ........ ... 6 145.0 __- 6 145.0 Oman ................. 5 47.0 - 5 4 7.0 Pakistan . .......... ... . 38 884.0 52 1.446 9 90 2 3323.9 Panamra................. 23 361.7 - - 23 361.7 Papua New Guinea ............. 9 94.0 8 108.2 17 202.2 Paraguay . . .............. 21 288.7 6 45 5 27 334.2 Peru . .. . .. ...... 43 956.0 - - 43 956.0 Philippines ................ 75 2,922.9 3 122.2 78 3,045.1 Portugal . ............ . 19 695.5 -.- _ 19 695.5 Rhodesia ........ ..... . .. 5 87.0 __- 5 87.0 Rornan a . . .......... . 30 1,862.8 - - 30 1 862.8 Rwanda ... .. ..-...15 13 2.2 15 132.2 Senegal 4I .......a........ 19 164.9 23 234.8 42 399.7 Sierra Leone ............. .. 4 18.7 8 64.3 12 83 0 Singapore ... ... ..... . .... 14 181.3 - 14 181.3 Solomon Islands ....... ...... - 1 1.5 1 1.5 Somal a ........... ... .. - 22 157.4 22 157.4 South Africa ........ ...... 11 241.8 --. 11 241 8 (continued) 190 Bank/lDA Appendices Bank and IDA Cumulative Lending Appendix 2 Operations, by Borrower or Guarantor, June 30, 1981 (continued) Expressed in United States dollars (in millions) Bank loans IDA credits Total Number 1 Amount Number I Amount Number 1 Amount Spain .............................. 12 $ 478.7 - $ - 12 $ 478.7 Sri Lanka .............................. 8 93.9 27 536.6 35 630.5 Sudan ....... 8 166.0 25 595.5 33 761.5 Swaziland ............................. 10 61.6 2 7.8 12 69.4 Syrian Arab Republic .......... . 13 483.7 3 47.3 16 531.0 Tanzania ............................ 18 318.2 44 631.5 62 949.7 Thailand .. ........................... 66 2,286.3 6 125.1 72 2,411.4 Togo 7 .............a........ .... 1 20.0 12 110.6 13 130.6 Trinidad and Tobago ......... .......... 13 124.8 - - 13 124.8 Tunisia .............................. 46 902.4 5 74.6 51 977.0 Turkey .............................. 56 3,129.4 10 178.5 66 3,307.9 Uganda .............................. 1 8.4 10 133.8 11 142.2 Upper Volta I I.. ...... - 1.9 .19 194.7 19 196.6 Uruguay .. 19 371.4 - - 19 371.4 Venezuela .............................. 13 383.3 - - 13 383.3 Viet Nam .............................. - 1 60.0 1 60.0 Western Africa Region ' .................... - - 1 3.0 1 3.0 Western Samoa ......................... - - 3 14.4 3 14.4 Yemen Arab Republic ............ .......... - - 25 249.3 25 249.3 Yemen, People's Democratic Republic of .... .... - - 17 110.0 17 110.0 Yugoslavia ............................. 63 3,005.1 - - 63 3,005.1 Zaire . .......................... 6 220.0 22 306.3 28 526.3 Zambia ........................... 25 592.4 2 37.3 27 629.7 Zimbabwe 1 . ....................... 2 92.0 - 15.0 2 107.0 Taiwan, China 12 ......................... 14 329.4 4 15.3 18 344.7 TOTAL .. .......................... 2,015 $68,150.3 1,079 $24,051.9 3,094 $92,202.2 Jo nt Bank. IDA operations are courted only once, as Bank operations. When more than ore loan is made for a single project, the operation is counted only orce. 2 Includes $46.1 m lion in Bark amount and ore Bank loan, as we I as $175. 0 il ior in IDAamountand 19 IDAcredits, whizh replace commitments originally made to Pakistan. 3 The loans were made for the benef t of the fo lcwing Bank members-Banamas, Barbados, Grenada, Guyara, and Jamaica-and for the benefit of the territories of the United Kingdom's Assoc ated States and Deperdencies n the Caribbean Region. The members wi1l be severa ly liable as guarantors to the extent of subloans made ir their territories. a One IDA project, in fiscal year 1974, for Drought Relief, is shared by the following countries: Chad-$2 million; Mal -$2.5 milion; Mauritania- $2.5 million; N ger-$2 million; Senega -$3 m lion; Upper Volta-$2 mil ion. The amounts are included in each countrys tota , but the operation s counted on,y once, against Senegal. I Jointly guaranteed by Kenya, Tanzania, and Uganda. 6One Bank loan of $35 m Illor, in fiscal year 1959, is jo nt y guararteed by People's Republic of the Congo, France, and Gabon. DOne Bank project of $60 mi lion, in fisca year 1976, has been assigned in equa shares to Ghana, Ivory Coast, and Togo, but the operation is counted only once, againstTogo. Of the $60 m llion, an amount of $49.5 millor was lentto Cimentsde 1'Afriquede l'Ouest(C IMAO) and is jointly guaranteed bythe three countries. 8One Bank oan of $7.5 mi lion, in f sca year 1954, is shared ir amounts of $10875 mi lion each by Ivory Coast, Mal , Senega , and UpperVolta, but is counted as ore operation, aga nst vory Coast. One Bank loan of $23 mill on, n fiscal year 1978, is guararteed by vo'y Coast and Upper Volta, but s counted as one operatior, against Ivory Coast. IExcludes $46.1 million in Bank amourt and one Bank loan, as we I as $175.8 mil ion in IDA amount and 19 DA zred ts. which were replaced by comm tments made to Bang adesh. 10 The credit is to the Banque Duest Africaine de Developpement (BCAD), the regional development bank of the Union Mcnetaire Ouest Africaine (UMOA), which s a monetary union ofs x frarcopyone states-Ben n, voryCoast, Niger, Senegal, Togo, and UpperVolta. 11 Two Bank loans-of $80 mill on, in f scal year 1956, and $7.7 million n fiscal year 1965, respectively-have been ass gned in equa shares to Zambia and Z mbabwe, but are counted on y once. agairst Zimbabwe. 12 Represents loans and credits made at a time when the authorities on Ta wan represented Ch na in the World Bank (prior to May 15, 1980). Bank/IDA Appendices 191 Statement of Loans Approved Appendix 3 during Fiscal Year 1981 July 1, 1980-June 30, 1981 Expressed in United States dollars (in millions) Guarantor Date of Interest Principal Purpose and borrower approval Maturities rate amount Algeria Transportation: Fourth Highway ................. ........ Jul. 8. 1980 1985/1997 8.25% $ 110.0 Argentina Education: Vocational Training and Technical Education .Oct. 7,1980 1984/1995 9.25% 58.0 Energy: Cca Exploration .Dec. 9,1980 1985/1990 9.25% 10.0 Bahamas Education: Vocational and Technical Education .Mar. 26, 1981 1984-1996 9.60% 7.0 Barbados (Guarantor) Energy: Electric Power-Barbados Light and Power Company, Limited . . . Jan. 6, 1981 1984/1996 9.25% 6.0 Botswana Transportation: Fifth Road .Jan. 6,1981 1985/1997 9.25% 17.0 Brazil Agriculture and Rural Development: Second Ceara Rural Development .... Dec. 2, 1980 1984/1995 9.25% 56.0 Industry: Alcohol and Biomass Energy Development .May 12. 1981 1984/1996 9.60% 250.0 Agriculture and Rural Development. Piaui Rural Development .Jun. 16, 1981 1985/1996 9.60% 29.0 Brazil (Guarantor) Energy: ELETROSUL Second Power Transmission-Centrais Eletricas do Sul do Brasil, S.A .Jul. 22, 1980 1984/1995 8.25% 125 0 Energy: Electric Power System Coordination-Centrais Eletricas Brasileiras, S.A .Dec. 23, 1980 1984/1996 9.25% 54.0 Urbanization: Third Urban Transport-Empresa Brasileira dos Transportes Urbanos .Mar. 31, 1981 1984/1996 9.60% 90.0 Water Supply and Sewerage. Banco Nacional da Habitag,o .Apr 21, 1981 1984/1996 9.60% 180.0 Agriculture and Rural Development: Second Agricultural Research- Empresa Brasileira de Pesquisa Agropecuaria Jun. 16, 1981 1985/1996 9.60% 60.0 Cameroon Agriculture and Rural Development: Northern Province Rural Development . Nov 18, 1980 1986/2001 9.25% 25.0 Small-Scale Enterprises: Second Artisans and Small and Medium-Scale Enterprise .Nov. 18. 1980 1984/1996 9.25% 15.0 Chile Agriculture and Rural Development: Second Agricultural Credit .Sep. 9, 1980 1984/1995 9.25% 36.0 Transportation. Highway Reconstruction . ......... . ............ . Dec. 9, 1980 1984/1996 9.25% 42.0 China Education University Development.. Jun. 23, 1981 1987/2001 9.60% 100.0 Colombia (Guarantor) Energy: Playas Hydro Power-Empresas Publicas de Medellin .Mar. 3,1981 1985/1998 9.60% 85.0 Transportation: Rural Roads-Fondo Nacional de Caminos Vecinales . . . Mar 31, 1981 1985/1998 9.60% 33.0 Agriculture and Rural Development: First Irrigation Rehabilitation- Instituto Colombiano de Hidrologia. Meteorologia y Adecuacidn de Tierras May 19, 1981 1986/1998 9.60% 37.0 Energy: Village Electrification-Corporacion Electrica de la Costa Atlantica ... ................................. ....... . May 21, 1981 1985/1998 9 .60% 36.0 Energy: Guavio Hydro Power-Empresa de Energia Electrica de Bogota . May 28, 1981 1986/1998 9.60% 359.0 Costa Rica Energy Petroleum Sector Technical Assistance . Jun. 23, 1981 1984/1996 9.60% 3.0 Costa Rica (Guarantor) Water Supply and Sewerage: San Jose Water Supply-Instituto Costarricense de Acueductos y Alcantarillados .Dec. 23, 1980 1984/1995 9.25% 26.0 Cyprus Agriculture and Rural Development: Fruit and Vegetable Export May 12, 1981 1984/1996 9.60% 14.0 Dominican Republic Agriculture and Rural Development: Cocoa and Coffee Development Jun. 23, 1981 1986/1998 9.60% 24.0 Ecuador Agriculture and Rural Development: Puerto Ila-Chone Rural Development May 12, 1981 1985/1998 9.60% 20.0 Egypt, Arab Republic of (Guarantor) Energy: Western Desert Petroleum Exploration-General Petroleum Company .Dec. 9,1980 1985/2000 9.25% 25.0 Industry. Egyptian Iron and Steel Company Rehabilitation-HADISOLB . . . May 26, 1981 1986/1996 9.60% 64.0 (continued) 192 Bank/IDA Appendices Statement of Loans Approved during Fiscal Year 1981 (continued) July 1, 1980-June 30, 1981 Expressed in United States dollars (in millions) Guarantor Date of Interest Principal Purpose and borrower approval Maturities rate amount Fiji Norproject. Cyclone Reconstructior ............ ............ Nov. 25, 1980 1984 1996 9.25% $ 18.0 Guyana Energy: Technical Assistance for Power Development ............. Oct. 7. 1980 1985/1990 9.25% 8.0 Norproject Structural Adjustment ........................... Feb. 3 1981 1986/2001 9.25% 14.0 Technical Assistance: Second Technical Assistance .. ............. Feb. 3, 1981 1986.2001 9.25% 1.5 Honduras Transportatior: Eighth Highway .......... .................... Aug. 261980 1986/2000 9.25% 28.0 India Agriculture and Rurai Development: Kandi Watershed and Area Development .......i.................................. Jul. 22, 1980 1986;2333 8.25% 30.0 Energy: Second Bombay High Offshore Development ................ Dec. 9,1980 1986/2011 9.25% 400.0 Indonesia Agriculture and Rural Development: Smallholder Coconut Development . . Aug. 8, 1980 1986/2000 9.25% 46.0 Educatior: University Development .Sep ......................Se p16, 1980 1986/2000 9.25% 45.0 Energy: Tenth Power ...................................... Feb. 24, 1981 1986/2001 9.60% 250.0 Agriculture and Rural Development: Swamp Reclamation ......... . . . . . Mar 19, 1981 1986/200' 9.60% 22.0 Urbanization: Fourth Urban Development . ............... . . . . . . . . Apr. 21. 1981 1986.200' 9.60% 43.0 Agriculture and RLral Development: Fifth Nucleus Estates and SmalIholders ..... .......... ...... . . ... ....... ... . . May 28, 1981 1986,2001 9.60% 161.0 Small-Scale Enterprises: Second Small Enterprise Development ....... . Jun. 2,1981 1986.2001 9.60% 106.0 Ivory Coast Transportation: Highway Sector ..... . . . . . . . . .Nov. 4. 1980 1985.,1997 9.25% 100.0 Ivory Coast (Guarantor) Energy: First Power Energie Electrique de la Cote d'lvoire . ........ . . Jul. 22, 1980 1985/1997 8.25% 33.0 Jamaica Development Finance Companies: Second Export Development Fund .... . Apr. 30, 1981 1986/1398 9.60% 37.0 Jamaica (Guarantor) Energy: Petroleur Exploration--Petroieum Corporation of Jamaica .... . . Jun. 16, 1981 1986/1998 9.60% 7.5 Jordan Urbanizat on Urban Development ...... . . . ....... . . . . Jul. 15, 1980 1985:i'997 8.25% 21.0 Energy: FoLrth Power .......... ...................... May 7, 1981 1985/ 1998 9.60% 25.0 Kenya Transportat on: Ra lway . ....... . ........... ....... ...... .. Apr 23, 1981 1986/2001 9.60% 58.0 Agriculture ard Rural Development: Fourth Agricultural Credit .. May 19, 1981 19871/2001 9.60% 25.0 Korea, Republic of Agriculture and RLral Deve opment: Third Agricultural Credit ....... . . . Apr. 23, 1981 1984/1996 9.60% 50.0 Urbanization: National Urban Land Development and Housing ...... . . . Apr 30, 1981 1984/,1995 9.60% 90.0 Korea, Republic of (Guarantor) Development Finance Comparies: Korea Long-Term Credit Bank .... . . Dec. 23, 1980 1984/1995 9.25% 90.0 Devetopment Finance Companies: Fourtn Korea Development Bank ... . . . Dec. 23, 1980 1984,:l995 9.25% 100.0 Developrent Finance Companies: Fourtn Small and Medium Industry Bank May 26, 1981 1984/1996 9.60% 60.0 Liberia Energy: Petro eum Exploration Promotion ........ . ............. Oct. 7, 1980 1986/2300 9.25% 5.0 Malawi Nonproject: Structural Adjustment .J.o........... . ............. Jun. 25, 1981 1986/2012 9.60% 45.0 Technical Assistance ........... .. ....... ... .......... . J.o. . . Jun. 25, 1981 1986.2201 9.60% 1.0 Malaysia Agriculture and Rural Development Kelantan Land Schemes Rehabilitat on .Aug. 26, 1980 19851597 9.25% 25.0 Agriculture and Rural Development: Rural Credit . Aug. 26, 1980 1985.1397 9.25% 30.0 Agriculture and Rural Development. Rompir-Endau Area Development . . Mar. 19, 1981 1985/1998 9.60% 40.0 Agriculture and Rural Development. Trans-Perak Area Development .. . Mar 26, 1981 1985!1998 9.60% 50.0 Agriculture and Rural Deve opmenet: First Federal Land Consolidation and Rehabilitat or Authority . . ...... .. . . . .J.o........ ........... Jun. 16, 1981 19861/1998 9.60% 37.0 Bank/IDA Appendices 193 Appendix 3 Guarantor Date of Interest Principal Purpose and borrower approval Maturities rate amount Mauritius Urbanization: Urban Rehabi itation and Development ... .......... Dec 9,1980 1985/ 1998 9.259% 5 15.0 Nonproiec. Structural Adjustment ......i... .. . ..... . Jun 2,1981 1985/1998 9.60%V 15.0 Mexico (Guarantor) Agrculture and Rural Development: Seventh Agncultural Credit- Nac onal Fnanciera, S.A ........ .......... . . ...... Jul. 8, 1980 1985/1997 8 25% 325.0 Agriculture and Rural Developrment. Ocoron I rr[gation- Nacional F[nanciera, S.A .c. . . . . ............ . ct. 14. 1980 1984/1995 9.25% 23 0 Water Supply and Sewerage: Second Med um-Size Cities Water Supply and Sewerage-Barco Nacional de Obras y Sevicios Publicos. S.A. Nev. 4, 1980 1984/1995 9.25% 125 0 Transportation. Fourth Railway--Banco Nacional de Obras y Servicios Pubicos, S.A ... .. ....... . .. . .... .. . .. . . . . Dec. 16, 1980 1984/1995 9.25% 150 0 Agriculture and Rural Development: Ranfed Agricultural Development- Nacional Financiera, S.A .. .......... . .. . .. . . . Jan. 22, 1981 1984/1996 9 25% 280.0 Transportation: Port Developmrent Preparation-Banco Nacional Pescluero y Portuarin. S.A. ...... . . . . ... I . . . Mar. 26, 1981 1985/1996 9 60% 14 0 Urbanization: Second Urban and Regional Development-Banco Nacional de ebras y Servicios P6blicos, S A .... . . . . . .... May 12, 1981 1984/1996 9 60% 164.0 Morocco Urbanizat on: Second Urban Development . . . .n...... . . . . Jan. 22, 1981 1985 1998 9.25% 36 0 Water Supply and Sewerage. Third Water Supo . . . . . .. May 28, 1981 1985/ 1998 9.60% 87 0 Morocco (Guarantor) Development Finance Companies: Fourth Hotel Development-Cridit Inmobi ier et Hotelier ........... ... .. .......... Jan 22, 1981 1985/1998 9.25% 100.0 Nicaragua Developmrent Finance Companies: Industrial Rehailitation Credit ..... .h Jun. 25, 1981 1987/2001 9.60% 30.0 Nicaragua (Guarantor) Water Supply and Sewerage: Managua Water Sunply Engineering InstitutoeNicaraguense de Acueductos y Alcantarillados . .. . . .. Apr 30, 1981 1987/2001 960% 3.7 Nigeria Agriculture and Rural Development. Bauchi State Agricultural Development ..Apr 30, 1981 1986/2001 9 0% 132 0 Agricu:ture and Rural Development. Kano Agricultural Development . . . Apr. 30, 1981 1986/2001 9 60%1 142.0 Technica Assistance Agricultural Technical Assistance .Jun. 30, 1981 1986/2001 9.609% 47 0 Panama Energy. Energy Planning and Petro eurm Exploration Promotion . . . Mar 17, 1981 1985 1998 9 6000 6 5 Transportation: Road Rehabilitation .Jun. 23, 1981 1986 1998 9 60.% 19 0 Panama (Guarantor) Deve opment Finance Comparies: Second Development Banking Corporacidn F nanciera Nac[onal. . . . . . . Mar 19, 1981 1984, 1996 9 60% 20 0 Papua New Guinea Education Primary Education .Dec 23, 1980 1986r2000 9 25% 6.0 Paraguay Agriculture and Rural Development LuvestocK Deveopment Apr 30. 1981 1985/1998 9.60%b 300 Educat;on. Rural Primary Education . . . May 12, 1981 1985/1998 9 60%" 17.0 Water Supply and Sewerage: Second Rural '/1ater SUPDIY and Sanitation . . . Jun. 16, 1981 1986/1998 9.60% 11 8 Peru (Guarantor) Industry. Emrorsa Sidorirgica del PerdJ . . ....... ... ....... Jul. 15, 1980 1984/1990 8 25% 5.O Transportation Aviation Development Corporacidn Peruara de Aeropuertos y Aviaci6r Comercial .Mar 26, 1981 1995:1998 960% 580 Deve opment Fnance Companies. Second Industrial Credit- Corporaci6n Financiera de Desarrollo .A.p.r.... . . ..... Apr 7, 1981 1986 1998 9 609. 60 0 Energy: Power Eng(neering Empresa de Electricidad del Peru, S.A. . Jun. 23, 1981 1986, 1998 9.60e% 25 0 Philippines Agriculture ard Rural Development Watershed Management and Eros[on Control ...... ....... . . Jul. 8, 1980 1986i2000 8.25% 38.0 Agriculture ard Rural Development Third Livestock and Fisheries Credit Jul 15. 1980 1986/2000 8.25% 15.0 Nonpronect. Structural Adjustmert ..... . . .... . ...... Sep. 16. 1980 1986i2000 9.25% 200.0 Education: Sector Program for Elementary Educatior .Jun 30, 1981 198712001 9.60% 100 0 (continued) 194 Bank/IDA Appendices Statement of Loans Approved during Fiscal Year 1981 (continued) July 1, 1980-June 30, 1981 Expressed in United States dollars (in millions) Guarantor Date of Interest Principal Purpose and borrower approval Maturities rate amount Philippines (Guarantor) Development Finance Companies: Industrial Finance- Central Bank of the Philippines ............................. May 7, 1981 1986/2001 9.60% $150.0 Portugal (Guarantor) Development Finance Companies: Second Banco de Fomento Nacional . .. Jan. 13, 1981 1984/1995 9.25% 100.0 Energy: Petroleum Exploration Project-Petroleos de Portugal, E.P ...... Jun. 23, 1981 1984/1996 9.60% 20.0 Romania (Guarantor) Energy: Fourth Power-The Investment Bank of Romania ..... ....... Dec. 23, 1980 1983/1995 9.25% 125.0 Agriculture and Rural Development: Fourth Livestock (Cattle)-Bank for Agriculture and Food Industry ........... .................... Dec. 23, 1980 1984/1996 9.25% 80.0 Agriculture and Rural Development: Bucsani-Buzau-Siret-Prut Irrigation- Bank forAgriculture and Food Industry ... ........... Dec. 23, 1980 1984/1996 9.25% 75.0 Agriculture and Rural Development: Caracal-Titu Irrigation-Bankfor Agriculture and Food Industry ........... .................... Apr 21, 1981 1984/1996 9.60% 80.0 Senegal Nonproject: Structural Adjustment .......... .................. Dec. 18, 1980 1986/2001 9.25% 30.0 Senegal (Guarantor) Small-Scale Enterprises: Investment Promotion-Societe Financiere Senegalaise pour le Developpement de l'lndustrie et du Tourisme ...... Apr. 21, 1981 1984/1999 9.60% 6.5 Transportation: SEFICS Rail Transport-Societe d'Exploitation Ferroviaire des Industries Chimiques du Senegal ........ ................. Jun. 23, 1981 1986/1999 9.60% 19.3 Swaziland (Guarantor) Energy: Third Power-Swaziland Electricity Board ...... ........... May 28, 1981 1984/2001 9.60% 10.0 Syrian Arab Republic Education: Second Education (Vocational and technical training) ....... Apr. 23, 1981 1985/1998 9.60% 15.6 Thailand Transportation: Inland Waterways and Coastal Ports ...... .......... Jul. 8,1980 1986/2000 8.25% 53.0 Transportation: Bangkok and Sattahip Ports ....... .............. Nov. 18, 1980 1986/2001 9.25% 47.0 Agriculture and Rural Development: National Agricultural Research ...... Nov. 25, 1980 1986/2001 9.25% 30.0 Industry: Potash Engineering ................................ Jan. 28, 1981 1986/2001 9.25% 8.9 Agriculture and Rural Development: Twelfth Irrigation ...... ......... Jun. 23, 1981 1987/2001 9.60% 57.0 Thailand (Guarantor) Development Finance Companies: Fourth Industrial Finance Corporation of Thailand ........................................... Mar. 19, 1981 1985/1996 9.60% 30.0 Energy: Power Subsector-Electricity Generating Authority of Thailand . .. May 21, 1981 1987/2001 9.60% 100.0 Tunisia Education: Fourth Education (Vocational education and skilled manpower training) ............................................ Mar 26, 1981 1985/1998 9.60% 26.0 Small-Scale Enterprises: Small-Scale Industry Development ..... ..... Apr 14, 1981 1985/1997 9.60% 30.0 Agriculture and Rural Development: Northwest Rural Development (Phase l) ............................................ May 19, 1981 1986/2001 9.60% 24.0 Population, Health, and Nutrition: Health and Population ..... ........ May 28, 1981 1986/1998 9.60% 12.5 Industry: Textile Rehabilitation ............ .................. Jun. 2, 1981 1985/1996 9.60% 18.6 Tunisia (Guarantor) Energy: Third Power-Societe Tunisienne de l Electricite et du Gaz ..... May 26, 1981 1986/1998 9.60% 41.5 Turkey Nonproject: First Structural Adjustment (Supplement)' ...... ........ Nov 18, 1980 1985/1998 9.25% 75.0 Energy: Petroleum Exploration ........... .................... Nov, 18, 1980 1985/1998 9.25% 25.0 Energy: Bati Raman Enhanced Oil Recovery Field Demonstration ..... ... Nov 18, 1980 1985/1998 9.25% 62.0 Development Finance Companies: Labor-intensive Industry ..... ...... Mar 3,1981 1984/1996 9.60% 40.0 Agriculture and Rural Development: Second Fruit and Vegetable ..... ... Mar 31, 1981 1985/1998 9.60% 40.0 Industry: Fertilizer Rationalization and Energy Saving ...... ......... May 7, 1981 1986/1998 9.60% 110.0 Nonproject: Second Structural Adjustment ........ ............... May 12, 1981 1986/1998 9.60% 300.0 Turkey (Guarantor) Development Finance Companies: State Industrial Enterprise Finance- Devlet Yatirim Bankasi (State Investment Bank) ...... ............ May 21, 1981 1984/1996 9.60% 70.0 Bank/IDA Appendices 195 Appendix 3 Guarantor Date of Interest Principal Purpose and borrower approval Maturities rate amount Uruguay Development Finance Companies: Second Industrial Credit ........... Dec. 16, 1980 1984/1993 9.25% $ 30.0 Yugoslavia (Guarantor) Development Finance Companies: Fifth Industrial Credit-Kosovska Banka Pristina; Privredna Banka Sarajevo; Investiciona Banka Titograd; and Stopanska Banka Skopje .Oct. 28, 1980 1983/1995 9.25% 110.0 Agriculture and Rural Development: Second Morava Regional Development-Investbanka .Mar. 3,1981 1984/1996 9.60% 87.0 Transportation: Kosovo Railway-Pristina Railway Organization .Apr. 30, 1981 1984/1996 9.60% 34.0 Agriculture and Rural Development: Kosovo Agricultural Development- Udruzena Kosovska Banka Pristina .May 14, 1981 1984/1996 9.60% 90.0 Zambia Development Finance Companies: Second Development Bank of Zambia . Dec. 2, 1980 1984/1998 9.25% 15.0 Agriculture and Rural Development: Eastern Province Agricultural Development .May 21, 1981 1986/2001 9.60% 11.0 Zimbabwe Nonproject: Manufacturing Rehabilitation Imports Program .Mar. 26, 1981 1986/2001 9.60% 50.0 Nonproject: Transportation Rehabilitation Imports Program .May 19, 1981 1987/2001 9.60% 42.0 Total of Loans to or Guaranteed by Members . . . .$8,808.9 International Finance Corporation ...... ........... Jan. 22, 1981 1984/1995 11.00% 100.0 GRAND TOTAL . . . .$8,908.9 ' Supplementary financing to a previous loan, counted as a separate operation. 196 Bank/ DA Appendices Statement of Development Credits Approved during Fiscal Year 1981 July 1, 1980-June 30, 1981 (in millions) Principal amount Expressed US dollar in special equivalents Country Date of Service drawing or Purpose approval Maturities charge rights' US dollars' Bangladesh Small-Scale Enterorises: Third Small-Scale Industry ........ Sep. 16, 1980 1991/2030 0.75% SDR 26.7 0 35.0 Nonproject: Ninth Imports Program .. . ................... Oct. 14, 1980 1991/2030 0.75% 49.5 65.0 Energy: Bakhrabad Gas Development ........... ........ Dec. 23, 1980 1991/2030 0.75% 64.7 85.0 Transportation: Fertilizer Transport .. ............... . . . . Jan. 22, 1981 1991/2030 0.75% 19.1 25.0 Development Finance Companies: Second Bangladesh Shilpa Bank ........................................ Mar 19, 1981 1991/2030 0.75% 40.2 51.0 Technical Assistance: Fourth Technical Assistance ....... . . . Mar. 26, 1981 1991/2030 0.75% 12.9 16.0 Agriculture and Rural Develooment: Hand Tubewells ...... . . . May7, 1981 1991/2031 0.75 % 14.8 18.0 Agriculture and Rural Development: Agricultural Credit . ..... . May 21, 1981 1991/2031 0.75% 32.6 40.0 Benin Iransportation: Se^ond Feeder Roads ................... . Dec.23 1980 1991/2030 0.75% 5.5 7.0 Agriculture and Rural Development: Borgou Province Rural Development ..Apr 7,1981 1991/2030 0.75% 15.7 20.0 Transportation: Fourth Highway ....................... . May 14, 1981 1991/2030 0.75% 9.3 11.3 Water Supply and Sewerage: Cotonou Water/Sanitation Engineering .... ....... .. ....... . .Jun 25, 1981 1991/2031 0.75% 4.1 5.G Burma Agriculture and RLral Development: Grain Storage ........ . . Jan. 6, 1981 1991i2030 0.75% 17.9 23.0 Agriculture and RLral Development: First Wood Industries .... . Mar 17, 1981 1991/2031 0.75% 25.8 32.0 Burundi Telecommunications ........... . .......... ...... . . Jul. 29, 1980 1990/2030 0.75% 7.7 Transportation: Th:rd Highway ........................ . Apr 21, 1981 1991/2031 0.75% 20.5 25.0 ndustry: Nickel Exp oration/Engineering ......... . . . . . . . . May 28, 1981 1991/2031 0.75% 3.3 4.0 Agriculture and RLral Development. Kirimiro Rural Development . Jun. 16, 1981 1991/2031 0.75% 16.2 19.3 Cameroon Agriculture and RLral Development: Northern Province Rural Development .................................. . Nov. 18, 1980 1991/2030 0.75% 9.5 12.5 Technical Assistance: Second Technical Cooperation ....... . . Jun. 23, 1981 1991/2031 0. 75% 8.2 10.0 Central African Republic Transportation: Third Highway (Supplement) ......... . . . Nov. 11, 1980 1991/2030 0.75% 3.5 4.5 Education (Supplement) ................ Nov. 11, 1980 1991/2030 0.75% 0.7 0.9 Technical Assistarce ............. . . . ....... ... . .... May 26, 1981 1991/2031 0.75% 3.3 4.0 China Education: University Development ..... . .. ......... .. . . Jun. 23, 1981 19911/2031 0.75% 81.4 100.0 Egypt, Arab Republic of Education: Third Education ............. .. .. . .. . .. .. . Oct. 7,1980 1991/2030 0.75% 30.3 40.1 Agriculture and Rural Development: New Land Development . . . Dec. 16, 1980 1991/2030 0.75% 60.9 80.0 Agriculture and Rural Development: Fish Farming Development . . Mar 17, 1981 1991/2030 0.75% 11.0 14.0 Water Supply and Sewerage: Beheira Provincial Water Supply . . Jun. 2,1981 1991/2031 0.75% 46.1 56.6 Technica Assistance .......... .............. Jun. 16, 1981 1991/2031 0.75% 5.7 6.9 Ethiopia Agriculture and Rural Development: Second Agricultural Minimum Package .... ........ .... ........ .... ......... . Dec. 23, 1980 1991/2030 0.75% 32.0 40.0 Education: Fifth Education (Primary, seconcary, and nonformal education) .... ....................... May 14, 1981 1991/2031 0.75% 28.2 35.0 Ghana Transportation: RaAlway Rehabilitation ............ Jun. 25, 1981 1991/2031 0.75% 23.3 29.0 Guinea Agriculture and Rural Development Livestock Development . . . . Sep. 9,1980 1990/2030 0.75% 13.3 17.5 Erergy: First Power .............. .. ... ... ... . Dec.18, 1980 1991/2030 0.75% 22.1 28.5 Bank/IDA Appendices 197 Appendix 4 Principal amount Expressed US dollar in special equivalents country Date of Service drawing or Purpose approval Maturities charge rights' US dollars' Guinea-Bissau Energy: Petroleum Exploration Promotion .............. Jan. 13, 1981 1991/2030 0.75% SDR 5.4 $ 6.8 Guyana Nonproject. Structural Adjustment ......... .......... Feb 3. 1981 1991,'2030 0.75% 6.3 8.0 Haiti Agriculture and Rural Development Post-Hurricane Agricultural Rehabilitation . . Mar. 17, 1981 1991/2030 0 75% 2.6 3.2 Transporation: Port Development .. ........... ...... Mar 26, 1981 1991/2030 0.75% 8.7 11.0 Development Finance Companies: Industrial Credits . ...... Apr 14, 1981 1991/2030 0.75% 5.7 7.0 India Transportation: Bihar Rural Roads ........ . .. ........ Nov. 11, 1980 1991/2030 0 75% 26.7 35.0 Agriculture and Rural Development Mahanadi Barrages ...... Dec. 2,1980 1991/2030 0 75% 63.3 83.0 Urbanization: Second Madras Urban Development . . ....... Dec. 16, 1980 1991/2030 0 75% 32.6 42.0 Agriculture and Rural Deveiopment: Madhya Pradesh Medium Irrigation .................. .. .......... Mar 17, 1981 1991/2030 0.75% 112.6 140.0 Telecommunications. Eighth Telecommunications .... . . . . Mar 17, 1981 1991/2030 0.75% 252 4 314 0 Agriculture and Rural Development Karnataka Tank Irrigation . Mar. 19, 1981 1991.2030 0.75% 43.5 54.0 Industry. Hazara Fertilizer .............. . ........ Mar. 31, 1981 1991/2030 0.75% 321.5 400.0 Agriculture and Rural Development. Maharashtra Agricultural Extension ...................... . . ....... . Apr 21, 1981 1991/2031 0.75% 18.9 23.0 Agriculture and Rural Development: Tamil Nadu Agricultural Extension ............... . . ........ . . Apr 23, 1981 1991/2031 0.75% 22.9 28 0 AgricultLre and Rural Development. Madhya Pradesh Agricultural Extension .................... ............. Apr 23. 1981 1991/2031 0.75% 30.3 37.0 Agriculture and Rural Development: Second National Cooperative Development Corporation . ............ .. . . May 21. 1981 1991/2031 0.75% 101.8 125.0 Kenya Education Fifth Education (Primary and secondary school management training and training of middle- and higher-level personnel) ........... ..... ... . . ....... . . Mar 17, 1981 1991/2031 0.75% 314 40.0 Agriculture and Rural Development Fourth Agricultural Credit . May 19, 1981 1991/2031 0.75% 8 2 10.0 Lesotho Education: Third Education (Primary school construction and textbooks) ............. . ....... ... . . . . . May 21, 1981 1991/2031 0.75% 8.2 10.0 Liberia Small-Scale Enterprises Small and Medium-Scale Enterprise . . . Nov. 18. 1980 1991/2030 0.75% 3.2 4.0 Madagascar Agriculture and Rural Development: Agricultural Credit ...... . Sep 9, 1980 1990/2030 0.75% 8.7 11.5 Agriculture and Rural Development. Study of the Plain of Antanatiarivo Technical Assistance . . ....... ... .... . Dec. 18, 1980 1991/2030 0.75% 1.8 2.3 Techmcal Ass stance: Accounting and Audit Organization and Training .............................. . Jun. 2,1981 1991/2031 0.75% 94 11.5 Agriculture and Rural Development: Second Mangoro Forestry . . . Jun. 16, 1981 1991/2031 0 75% 16.3 20.0 Malawi Transportation Fourtn Highway . .......... ......... Feb. 3,1981 1991/2031 075% 259 33.0 Education: Fourth Education (Construction of secondary schools, trainig of secondary school teachers) ... . . .......... Mar 26, 1981 1991/2031 0.75% 32 2 41.0 Mali Transportation. Road Maintenance ............ . . Mar 3,1981 1991/2031 0 75% 13.4 17.0 Energy Petroleum Exploration Promotion .... . . . . . . . . Apr 21, 1981 1991.2031 0.75% 3.1 3 7 (continued) 198 BanrkiDA Appendices Statement of Development Credits Approved during Fiscal Year 198],(ontinued) July 1, 1980-June 30, 1981 (in millions) Principal amount Expressed US dollar in special equivalents Country Date of Service drawing or Purpose approval Maturities charge rights' US dollars' Mauritania Agriculture and Rural Development: Gorgol Irrigation ..... .... Sep. 16, 1980 1990/2030 0.75°% SDR 114 $ 15.0 Nepal Water Supply and Sewerage: Third Water Supply and Sewerage . Jul. 29, 1980 1990/2030 0.75% - 27.0 Agriculture and Rural Development: Grain Storage ......... . Aug. 26, 1980 1990/2030 0.75% 4.8 6.2 Agriculture and Rural Development Babai Irrigation Engineering Jan. 6,1981 1991/2030 0.75% 2.8 3.5 Agriculture and Rural Development: Hill Food Production ...... Feb. 3,1981 1991/2030 0.75%, 6.3 8.0 Agriculture and Rural Development: Agricultural Extension and Research ..... ................................ Feb. 3,1981 1991/2030 0.75% 13.8 17.5 Nicaragua Nonproject: Preinvestment Fund ........ ...........o... Dec. 16, 1980 1991/2030 0 75% 3.9 5.0 Niger Education (Training in education planning and project preparation, upgrading of shills of civil servants) ....... . . May 26, 1981 1991/2031 0. 5% 17.3 21.5 Pakistan Nonproject: Fertilizer Imports ......... . .............. Sep. 16, 1980 1991/2030 0.75% 38.2 50.0 Education: Fifth Education (Vocational Training) ........ . . . Mar. 17, 1981 1991X2031 0.75%"I 19.7 25.0 Small-Scale Enterprises: Small Industries .M.a...... . . Mar 17, 1981 1991/2031 0.75% 23.6 30.0 Agriculture and Rural Development Agricultural Research . j.. . Jun. 2,1981 1991/2031 0.75% 19.7 24.0 Agriculture and Rural Development: Grain Storage ....... . . Jun. 2, 1981 1991/2031 0.75% 26.1 32.0 Agriculture and Rural Development: On-Farm Water Management Jun.16. 1981 1991/2231 0.75% 33.4 41.0 Papua New Guinea Education: Primary Education ...................... . Dec. 23. 1980 1991'2030 0.75% 9.4 12.0 Agriculture and Rural Development: Second Agricultural Credit .. May 21, 1981 1991:2031 0. 75% 12.3 15.0 Rwanda Telecommunications .................... ... ... ... . Jul. 29, 1980 1990/2030 0.75% - 7.5 Agriculture and Rural Development: Lake Kivu Coffee and Foodcrop inprovement .......... . ................ Mar 31, 1981 1991/2030 0.75% 11.8 15.0 Senegal Technica. Assistance ............ . ............... Aug. 26, 1980 1990/2030 0.75% 4.1 5.3 Nonprcject: Structural Adjustment ........... . . . . . . . ... Dec. 18, 1980 1991/2030 0.75% 22.9 30.0 Agriculture and Rural Development: Forestry ......... . . . . . . Feb. 10, 1981 1991/2030 0.75%5 7.3 9.3 Small-Scale Enterprises: Investment Promotion ........ . . . . . Apr 21, 1981 1991/2030 0.75% 2.1 2.5 Sierra Leone Agriculture and Rural Development: Third Eastern Integrated Agricuitural Development . ... . ............ Jan. 13, 1981 1991/2030 0. 75% 9.2 12.0 Transportation: Second Highway ................. ...... Apr 7,1981 1991/2030 0.75% 8.1 10.0 Agriculture and Rural Development: Northern Integrated Agricu tural Develcoment ............. _.. .. .. .. .. . AprL 7,1981 1991/2031 0.75V 6.9 8.5 Solomon Islands Development Finance Companies: Development Banh cf Solomon Islands ....... ......................... Mar 17, 1981 1991/2030 0.75% 1.3 1.5 Somalia Education: Fourth Education (Primary and secondary schools, teacher traininrg) ........ .......... .......... .... . Mar. 3,1981 1991/2030 0.75% 8.0 10.2 Sri Lanka Agriculture and Rura Development: Secord Rural Development . Dec. 9,1980 1991 2030 0.75% 25.6 33.5 Transportation: Construction industry (Manpower Training) ... . Apr. 7,1981 1991/2031 0.75% 10.9 13.5 Agriculture and Rural Development. Vil age Irrigation Rehabilitation .................................. . Jun. 16, 1981 1991/2031 0.75% 24.5 30.0 Agriculture and Rural Development Thirdn Mahaweli Ganga Deve opnmert ... . . ..... . . . . .. . . . . Jun. 23. 1981 1991/2031 0.75% 73.3 90.0 Bank/IDA Appendices 199 Appendix 4 Principal amount Expressed US dollar in special equivalents Country Date of Service drawing or Purpose approval Maturities charge rightsl US dollars' Sudan Agriculture and Rural Development: White Nile Pump Schemes Rehabilitadon ................................... Mar. 26, 1981 1991/2031 0.75% SDR 27.5 $ 35.0 Agriculture and Rural Development: Blue Nile Pump Schemes Rehabilitation ................................... Mar. 26, 1981 1991/2031 0.75% 25.1 32.0 Technical Assistance: Second Technical Assistance ..... ... May 28, 1981 1991/2030 0.75% 4.9 6.0 Tanzania Education: Seventh Education (Education in underprivileged areas, improvement of secondary education) ...... ....... Jul. 29, 1980 1990/2030 0.75% - 25.0 Technical Assistance: Second Technical Assistance ..... ..... Aug. 8, 1980 1990/2030 0.75% 8.4 11.0 Agriculture and Rural Development: Coconut Pilot Project .... .. Oct. 7, 1980 1991/2030 0.75% 5.2 6.8 Nonproject: Export Rehabilitation Program ...... .......... Apr. 21, 1981 1991/2031 0.75% 40.9 50.0 Togo Transportation: Fourth Highway .......Ma. .y M a 7, 1981 1991/2030 0.75% 16.4 20.0 Industry: Phosphate Engineering and Technical Assistance ..... Jun. 23, 1981 1991/2031 0.75% 4.8 5.7 Uganda Technical Assistance .......... ................... Dec. 2, 1980 1991i2030 0.75% 6.4 8.0 Water Supply and Sewerage: Water Supply Engineering ..... .. Mar. 17, 1981 1991/2031 0.75% 7.1 9.0 Upper Volta Agriculture and Rural Development: Second Bougouriba Agricultural Development ........... ................ Jan. 28, 1981 1991/2030 0.75% 12.4 16.0 Transportation: Fourth Highway ........ .............. Jun. 16, 1981 1991/2031 0.75% 37.7 46.0 Western Samoa Agriculture and Rurai Development: Second Agricultural Development ................................... Dec. 9,1980 1991/2030 0.75% 1.6 2.0 Yemen Arab Republic Agriculture and Rural Development: Second Southern Uplands Rural Development . .............................. Sep. 16, 1980 1990/2030 0.75% 13.0 17.0 Energy: Regional Electrification (Second Power) ..... ........ Feb. 10, 1981 1991/2030 0.75% 9.4 12.0 Development Finance Companies: Industrial Development ..... Mar. 26, 1981 1991/2030 0.75% 9.7 12.0 Yemen, People's Democratic Republic of Agriculture and Rural Development. Wadi Beihan Agricultural Development ..... . May 19, 1981 1991/2031 0.75% 6.6 8.0 Transportation: Third Highway .......... ........... May 19, 1981 1991 2030 0.75% 10.3 12.5 Water Supply and Sewerage: Al Mukalla Water Supply Rehabilitation ................... .............. Jun. 2,1981 1991/2030 0.75% 2.9 3.5 Zaire Agriculture and Rural Development. Kwilu-Ngongo Sugar ...... Dec. 23, 1980 1991/2030 0 75% 20.2 26.4 Technical Assistance . ........... . May 26, 1981 1991/2030 0.75% 2.4 2.9 Zimbabwe Nonproject: Manufacturing Rehabilitation Imports Program ... . Mar. 26, 1981 1991/2030 0.75% 12.1 15.0 TOTAL .... ............................. . . ........................... SDR 2,719.0 $3,482.1 'From August 1, 1980, IDA credits have been approved urder advance contributions to the S xth Replen shment of IDA and are expressed in Spec al Draw ng Rights (SDR). The first column under Pr nc pa: Amoent gives the SDR amourt the second column show the United States dollarequivalent Where no SDR amount but only a US dol ar amount appears the credit was approved under the F fth ReDienishment of (DA and the amount was expressed In United States doilars only 2SLpp ementary financing to prev ous c'ed ts, not counted as a separate overation. 200 Bank/IDA Appendices Budgets of the Bank and IDA For the fiscal year ending June 30, 1982 Actual expenses Budget 1981 1982 (Thousands of US dollars) BY ORGANIZATION UNIT Board of Governors ....................... ......... 1,934 $ 2,061 Executive Directors ................................. 11,651 14,345 Executive Offices . ................ ................ 2,361 2,263 Regional Offices ....................... .......... 208,746 236,692 Central Projects Staff ................ ............... 55,904 67,534 Cooperative Programs: FAO, Unesco, WHO, and UNIDO ........ 10,275 12,733 Development Policy Staff ............................. 27,699 31,686 Financial Staff ................ .................. 29,917 33,732 Operations Evaluation Staff ........................... 4,086 4,648 Legal, ICSID, and Secretary's .......................... 10,669 12,355 External Relations .................................. 12,918 15,475 Economic Development Institute ........................ 10,752 12,504 Administration, Organization, Personnel Management ..... 58,086 66,614 Secretariat of the Consultative Group on International Agricultural Research ..................... 1,250 1,440 Administrative Tribunal ......... ................... 377 307 Reimbursable Technical Assistance .......... ...... 5,749 8,671 Contingency allowance .............. ................ - 4,200 Subtotal ............. ........................ $452,374 $527,260 Less: Reimbursements ............................... -14,686 -21,216 IFC service and support fee ......... ............. - 2,874 - 3,344 Subtotal ....................... ............. $434,814 $502,700 Add: Contributions to Special Programs : . ................. - 22,800 TOTAL IBRD/IDA ................................ $434,814 $525,500 Bank/!DA Appendices 201 Appendix 5 Actual expenses Budget 1981 1982 (Thousands of US dollars) BY EXPENSE CATEGORY Personal services ................................. $302,256 $344,473 Operational travel ............. .................... 44,860 54,681 Representation .... ............... ............... 1,130 1,356 Consultants ......................... 26,659 34,9232 Contractual services ............................. 14,898 15,187 Overhead expenses Other travel ..................................... 20,005 22,967 Office occupancy ...... ........................... 18,308 23,473 Communications .................................. 9,605 10,950 Other expenses ................................... 14,653 15,050 Contingency .................................. - 4,200 Subtotal ...................................... $452,374 $527,260 Less. Reimbursements ......................r....... - 14,686 - 21,216 IFC service and support fee . ..................... - 2,874 - 3,344 Subtotal. ,,... ............................... $434,814 $502,700 Add: Contributions to Special Programs .............. . . - 22,800 TOTAL IBRDOIDA . ............................. $434,814 $525,500 Of which. IBRD ...................O................ $254,814 $318,582 IDA ..................................... $180,000 $206,918 NOTE: The Budgets for the fiscal year end ng June 30, 1982, were approved by the Executive Directors in accordance w th the By-Laws of the Bank and IDA. For purposes of compar son, expenses incurred during the fisca year ended June 30, 1981, are also shown. I Beginning in fiscal 1982. the Budget includes contributions to Specia Programs, as follows Agricultura research centers-$18.0 miilion; the Onchocerciasis Cortro Programme-$2 0 milion; and the Specia Programme on Research and Tra ning n Trop ca Diseases-$2.8 miDon. Pr or to fiscal 1982. contrmbut.ons to Specia Programs were treated as a ocations from the Bank's ret ncome. The comparable transfers ir fiscal 1981 total $19.1 m 11 on, consisting of $14.6 million for agricultural research, $2.0 mUilion for onchocerciasis control, and $2.5 mi ion for reasearch and training ir tropical diseases. IThe figures shown nc ude the costs of the Cooperative Programs. 3 n f scal 1982 genera! assistance rendered by the Bank to IFC wi be paid for by a service and support fee, w`uic has been estabiUshed for the year at $3,344,000. 202 Bank/IDA Appendices Governors and Alternates of the Bank and IDA June 30, 1981 Member Governor Alternate Afghanistan .... ......... Abdul Wakil ..... ............. Khair Mohammad Sultani Algeria ............. M'Hamed Hadj-Yala .................. Mohamed Terbeche Argentina ............ Lorenzo Juan Sigaut ................. Egidio lannelia Australia ............ J. W. Howard ..... ............ J. C. Ingram Austria ............ Henbert Salcher .................. Hans Seidel Bahamas .' ............ Arthur D. Hanna .................. Ethelyn C. Isaacs Bahrain ' ..... ....... Ibrahim Abdul Karim ................. Isa Abdullah Burshaid Bangladesh .... ........ Saifur Rahman ........... ...... A. M. A. Muhith Barbados .. ............. 1. M. G. M. Adams .................. Stephen E. Emtage Belgium ..... ....... Robert Vandeputte ................ . Cecil de Strycker Benin ............. Abou Bakar Baba-Moussa ............... (vacant) Bolivia ............. Jorge Tamayo Ramos .................. Marcelo Montero Nutez Botswana P S. Mmusi .Baledzi Gaolathe Brazil ............ Antonio Delfim Netto ................. Carlos Geraldo Langoni Burma .............................. Tun Tin ............. Aye Ko Burundi ............ Andre Bibwa .... ......... Anselme Habonimana Cameroon ............ Youssoufa Daouda ...... ....... Louis-Claude Nyassa Canada ............ Allan J. MacEachen ....... ...... Marcel Masse Cape Verde .... ........ Corentino Santos ...... ....... Antonio Hilaric Cruz Central African Republic ........... . Eugene Cdlestin M'Bedo ............ Z. oungoula Abel Chad ............ Ngangbet Kosnaye ...... ....... Gali Gata Ngote Chile ............ Sergio de Castro Spikula ............. Martfn Costabal Llona China ............ Wang Bingqian ..... ........ Li Peng Colombia ............ Eduardo Wiesner Duran ............ . Rafael Gama Quijano Comoros . ........ .... Said Kafe .... ......... Si Mohamed Nacr-ed-Dine Congo, People's Republic of the ............ Pierre Moussa ......... ........ Andre Batanga Costa Rica ....... .......... Emilio Garnier Borella ................. Manuel Naranjo C. Cyprus ................. Afxentis C. Afxentiou .................. H. Hadjipanayiotou Denmark ...... ........... Kjeld Clesen .......... ........ Mogens isaksen Djibouti ...... ........... Ibrahim Mohamed Sultan ................. Ibrahim Kassim Chehem Dominica ....... .......... Mary Eugenia Charles ................. Alick B. Lazare Dominican Republic ................. Carlos Despradel ................. . Rafael Hernandez Machado Ecuador ..................Ce sar Robalino G . ................ Gonzalo Cordoero Crespo Egypt, Arab Republic of ................. Abdel Razak Abdel Meguid .... M. Samir Koraiem El Salvador ....... .......... Guillermo Diaz Salazar ................. Atilio Vieytez Equatorial Guinea ............... .. Carmelo Owono Ndong Andeme ............. Juan Efua Efua Asangono Ethiopia ...... ........... Teferra Wolde-Semait ................. Desta Beshaw Fiji ..... ............ Charles Walker ........... ...... Winston Thompson Finland ........ ......... Pirkko Tyolajarvi ................. . Annikki Saarela France ....... .......... Renaud de la Geniere .................. Gabriel Lefort Gabon ...... ........... Pascal Nze ....... .......... J. Felix Mamaoepot Gambia, The. ................ Saihou S. Sabally. ................ T G. G. Senghore Germany. . ............... Hans Matthoefer ................ . .Rainer Offergeld Ghana. . ............... George Benneh ................. Ebenezer Lartey Nyakotey Greece. . ............... Stavros Dimas. ................ George Souf ias Grenada. . ................ Bernard Coard. ................. Dessima Wil iams Guatemala. . ................ Arnoldo Beltet6n San Josd .o............. . Juan VUlentn Solrzano F. Guinea. . ............... Mohamed Lamine Tourd .................Kesso Bah Guinea-Bissau ................. Victor Freire Morteiro .................. Jose Lima Barber Guyana.H.. . ............ Hugh D. Hoyte. ................ Clarence Ellis Haiti ... ............ . .Emmanuel Bros ............... . .Gerard Martineau Honduras. . ................ Valentin J. Mendoza .................. Praxedes Martinez S. Iceland. . ............... Tomas Arnason ................. Ragnar Arnalds India.. ................ R. Venkataraman. ................ R. N. Malhotra Indonesia ................. Rachmat Saleh ............... . .Soegito Sastromidjojo Iran . ................ Mohsen Noorbakhsh .................. (vacant) Iraq ................. Thamer Rezooki. ................ Subhi Frankool Ireland ............. .... John Bruton 2. .............. . Tomas F. 0 Cofaigh Israel ............. .... Arnon Gafny ................. Ezra Sadan Italy . ................ Carlo Ciampi .................. Felice Ruggiero Bank/IDA Appendices 203 Appendix 6 Member Governor Alternate Ivory Coast . .................. Abdoulaye Kon ...................... Lon Naka Jamaica I ..... .............. E. P G. Seaga .................... Horace Barber Japan ................... Michio Watanabe .................... Haruo Mayekawa Jordan ................... Hanna Salim Odeh ............ ... . Mohammad Saleh Horani Kampuchea, Democratic .................. (vacant) . ................... (vacant) Kenya ................... Mwai Kibaki .................... H. M. Mule Korea, Republic of ................... Seung-Yun Lee ................... . Joon Sung Kim Kuwait ................... Abdlatif Y Al-Hamad .................. . Faisal Al-Khaled Lao Peoples Democratic Republic ........... Bousbong Souvannavong ................. (vacant) Lebanon ........ ........... Khattar Chebli .................... Sabbah Al-Hal Lesotho ................... E. R. Sekhonyana .................... M. P Sejanamane Liberia ................... Togba-Nah Tipoteh ................... John G. Bestman Libya . .................. Kasem M. Sherlala .................... Abdulla A. Saudi Luxembourg ................ ... Ernest Muehlen ................... . Raymond Kirsch Madagascar ................... Rakotovao Razakaboana .................. Rajaona Andriamananjara Malawi . .... L. Chakahala Chaziya . ...... S. M. Kakhobwe Malaysia .......... Tenghu Razaleigh Hamzah ................ Thong Yaw Hong Maldives .......... Fathulla Jameel ........ ...... . Adam Maniku Mali ........ . Ahmed Mohamed Ag Hamani .............. lbrahima Bocar Ba Mauritania .......... Dieng Boubou Farba .................... M'Rabih Rabou Ould Cheikh Bounena Mauritius . ....... . Rabindrah Ghurburrun ................... Madhukarlall Baguant Mexico ........ . David lbarra Munoz .................. Jorge Espinosa de los Reyes Morocco .......... Abdelkamel Rerhaye ...... Abdelkader Benslimane Nepal .......... Yadav Prasad Pant .................... Goraksha Bahadur Nhuchhe Pradhan Netherlands ........ . . A. P J. M. M. van der Stee ................ J. de Koning New Zealand . ....... . B. V. Galvin . ................... C. H. Terry Nicaragua .......... Joaqu)n Cuadra Chamorro ................ Haroldo Montealegre Niger .......... Hamid Algabid .................... Brah Mamane Nigeria ........ . . V. 1. Masi ......... ........... Ademola Thomas Norway .......... Ulf Sand ......... ........... Johan Joergen Hoist Oman .. . ......... Qais Abdul Munim Zawawi ................ Sherit Lotty Pakistan ......... Ghulam Ishaq Khan .................... Ejaz Ahmad Naik Panama . ....... . Ernesto Perez Balladares ................. Rogelio Fabrega Zarak Papua New Guinea . ....... . John Rumet Kaputin .................... Mekere Morauta Paraguay . ....... . Cesar Romeo Acosta .................... Augusto Colman V. Peru . ....... . Manuel Ulloa Elias .................... Pedro Pablo Kuczynski Philippines .... Cesar E. A. Virata . ........... .. Jaime C. Laya Portugal I .. . . Joao Ant6nio Morais Leitao ........... . Alberto Regueira Qatar ' . . . . Sheikh Abdul Aziz Khalifa Al-Thani ........ . Madhat Abdul Latif Masoud Romania . .. .Petre Gigea ......... . ....... . .Gheorghe Popescu Rwanda .... ................... Denis Ntirugirimbabazi . . . Jean-Damascene Munyarukiko St. Lucia . . . . . Winston Cenac ............... George C. Girard Sao Tome and Principe ...... . .... Henrique Pinto da Costa ... .. ........ Victor Manuel Lopes Correia Saudi Arabia ......... .. . Sheikh Mohammed Abalkhail .. ...........Sheikh Hamad Saud Al-Sayari Senegal . .......... . . Louis Alexandrenne ............... .Matar Seye Seychelles ' .. . ..... . . Maxime Ferrari . . . . . Robert W. J. Grandcourt Sierra Leone .. ......... Sama Siama Banya .............. . J. Amara-Bangali Singapore ' . . ........ Hon Sui Sen ........... . . J. Y M Pillay Solomon Islands . . ..... ..... Benedict Kinika . . . . A. V. Hughes Somalia . . ........ . Abdullahi Ahmed Addou . . . Mohamud Mohamed Nur South Africa ........... . G. P C. de Kock .. . . . C. L. Stals Spain . . Jaime Garcia Anoveros ........ . ... . Jose Ram6n Alvarez Rendueles Sri Lanka . .. . ...... . . Ronnie de Mel .......... .. . . W. M. Tilakaratna Sudan . ........ . . . Nasr Eldin Mustafa .............. . . Mirghani Mohamed Ahmed Suriname ' .. . ..... . . A. E. Telting ........... . . H. S. Adhin Swaziland ......... .. . V. E. Sikhondze . . . . . Timothy M. J. Zwane Sweden . ....... . . . Rolf Wirten ........... . . Hans Blix Syrian Arab Republic ....... . . Hamdi Al-Sakka ......... . . . Mohammad Mouaffac Tarabishi Tanzania . .......... . . K. A. Malima ........... . . Fulgence Michael Kazaura Thailand . . ........ . Sommai Hoontrakool ............ .... Chanchai Leetavorn (continued) 204 Bank! DA Appendices Governors and Alternates Appendhx 6 of the Bank and IDA (continued) June 30, 1981 Member Governor Alternate Togo ......... .. .... ... Koudjolou Dogo ..... .................. E. K. Agbobli Trinidad and Tobago . ......... George Chambers ............. E Barsctt Tunisia ....... .. ....... Mansour Moalla ............. ....... Moncef Zaafrane Turkey ............ .............. Kaya Erdem ...................... .. Osman S o ar Uganda ...... ...I ... Apollo Milton Obote ............. Robert E. hinu United Arab Emirates . .................. Sheikh Hamdan Bin Rashid Al Maktoum ...... Ahmed Hurua d Al-layer United Kingdom .... .................. Gordon Richardson ......... ........... Sir Douglas Wass United States .......o..... Dnald T Regan ...................... Richard N. Cooser Upper Volta ..... ............... Sanfo Mamadou .George Goongounga Uruguay - .......... .... . .... Valentin Arismendi ..................... Juan Jose Anichini Venezuela ..... ...... ....... Ricardo Martnez .Hermorn LLar S Soriano Viet Namn . ........ ............... Nguyen Duy Gia ............... Le Hoang Western Samoa ................. .... Vaovasamanaia R. P Phillips .............. Ma ava ula Toma Yemen Arab Republic ......... ...... Fuad Kaid Mohammed ................ Ali A. Khcder Yemen, People's Democratic Republic of ....... Farag Bin Ghanem ....... Yassin Nasser Yugoslavia ........................... Petar Kostic ......... Gavra Popovic Zaire ........ ...... Namwisi Ma Keyi ............... ....... Bazundama Mbandanu Luzumbulu Zambia . ............. Kebby K. S. Musokotwane ..... .... Fred Kazunga Zimbabwe .... .......... Enos Mzombi Nkala ... ...... Desond C. Krogh I Member of the Bark or y. 2 Appontmert ef'ec:ive after Jure 30, 1981. Bank/lDA Appendices 205 Executive Directors and Alternates Appendhx 7 of the Bank and IDA June 30, 1981 Total votes Executive Director Alternate Casting votes of Bank IDA Appointed United States 173,551 769,139 John Anson . ... ...... Derek F Smith ........... United Kingdom . . . . 26,250 263,576 Eberhard Kurth . ...... Norbert Schmidt-Gerritzen . . .Germany 11........................... 17,862 236,831 Paul Mentre de Loye ... Marthe Parent' . .. . ... France . .. . . 17,817 138 669 Seiji Moriska . . Kimiaki Nakajima ......... Japan .................................. 17,789 201,476 Elected Said E. El-Naggar ........ Saleh A. Al-Hegelan ...... Bahrain,2 Egypt (Arab Republic of), Iraq, Jordan, Kuwait, (Arab Repubi c of Egypt) (Saudi Arabia) Lebanon, Maldives, Pakistan, Qatar2 Saudi Arabia, Syrian Arab Republic, United Arab Emirates,2 Yemen Arab Republic .. 5. ...18,565 188.952 Earl G. Drake ... ... Reno J. Brown ...... Bahamas,' Barbados,' Canada, Dominica, Grenada, (Canada) (Bahamas) Guyana, Ireland, Jamaica,' St. LuciaI .15.627 165,024 H. N. Ray .. . M. Syeduz-Zaman ... .... Bangladesh, India, Sri Lanka ....... ........... 14,286 157,319 (India) (Bangladesh) Giorgio Ragazzi . ...... Rodrigo M. Guimar3es ... . .Greece, Italy, Portugal2 . 13,139 106,149 (Italy) (Portugal) Anthony IJ A Looijen ... ..Miodrag M. Stojiljkoviq . . . . .Cyprus, Israel, Netherlands, Romania,2 Yugoslavia . . . 13,114 109,686 (Netherlands) (Yugoslavia) Jacques de Groote ..l.o.... Turan Kivang .... . ... Austr a, Belgium, Luxembourg, Turkey .12,94 . 12,547 96,032 (Belgium) (Turkey) Joaquin Muns . ..... Roberto Mayorga-Cortes . . . .Costa Rica, El Salvador, Guatemala, Honduras, Mexico, (Spain) (Nicaragua) Nicaragua, Panama, Spain, Suriname,2 Venezuela 2 . . 12,250 93,747 Wang Liansheng ........ Chen Hui ........ China .................................. 12,250 91,311 (China) (China) Hans Lundstrdm ........ Ole L. Poulsen ........ Denmark, Finland, Iceland, Norway, Sweden ....... . 12,222 184,338 (Sweden) (Denmark) Zain Azraai . .. . Aung Pe. . . .Burma, Friy, Indonesia, Lao Peoples Democratic (Malaysia) (Burma) Republic, Malaysia, Nepal, Singapore,2 Thailand. Viet Nam .......... .. .......... . 11,529 109,438 S A McLeod ..... Anthony S. Cole ........ Australia, Korea (Republic of), New Zealand, Papua New (New Zealand) (Australia) Guinea, Solomon Islands, Western Samoa . 11,435 91,750 Y. S. M. Abdulai ....... William Smith ..... . Botswana, Burundi, Equatorial Guinea, Ethiopia, The (Nigeria) (Liberia) Gambia, Guinea, Kenya, Lesotho, Liberia, Malawi, Nigeria, Seychelles,2 Sierra Leone, Sudan, Swaziland, Tanzania, Trinidad and Tobago, Uganda, Zambia, Zimbabwe .......... . . . . . . . . . . . . . . . . . . . . . 11,094 143,254 Jaime Garcia-Parra ..... . Jose G. Cardenas .........Brazil, Colombia, Dominican Republic. Ecuador, Haiti, (Colombla) (Ecuador) Philippines . .... . . . . . . . . . . . . 10,484 113,403 Armand Razafindrabe ..... . Nicnphore Soglo ........ Benin, Cameroon, Cape Verde, Central African Republic, (Madagascar) (Benin) Chad, Comoros, Congo (People's Republic of the), Djibouti, Gabon, Guinea-Bissau, Ivory Coast, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, Sao Tome and Principe, Senegal, Somalia, Togo, Upper Volta, Zaire .............. .. .. . . . 9,663 127,523 David Blanco . ......... .Alberto Sola ....... Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay' . 9,124 95,976 (Bolivia) (Argentina) Ismail Khelil ..... . .Saad Zerhouni .Afghanistan, Algeria, Ghana, Iran, Libya. Morocco, (Tunisia) (Algeria) Oman. Tunisia, Yemen (Peoples Democratic Republic of) ......... . . . . . . . . . . . . . . . . . . . . . 8.196 99.243 In addition to the Executive Directors and Alternates shown in the foregoing list. the following also served after October 31, 1980 Executive Director End of period of service Alternate Director End of period of service Guillermo Constain .. . . . .. .. ...... .. February 4, 1981 Sang-Chul Suh . ........... . February 28. 1981 (Colombia) (Republic of Korea) Colbert 1. King . . March 31. 1981 David S. King .March 31. 1981 (United States) (United States) Hans-Dieter Hanfland . . . March 31. 1981 (Germany) NOTE. Democrat c Kampuchea (464votes in BRDand 7,826votes in DA) and South Africa (3,713votes n BRDand 12,445votes In IDA)did not participate nthe 1980 Regu ar Election of Executive Directors. Has res gred effective Ju y 31, 1981, to be succeeded by Robert Huddry 2 Member of tne Bank only. 206 Bank/IDA Appendices Officers and Department Directors of the Bank and IDA July 1, 1981 President ................................................. A. W. Clausen Senior Vice President, Finance ................................................. Moeen A. Oureshi Senior Vice President, Operations ................................................ Ernest Stern Regional Vice President, Latin America and the Caribbean ............................. Nicolas Ardito Barletta Vice President, Projects Staff ................................................ Warren C. Baum Vice President, External Relations ................................................ Munir P Benjenk Regional Vice President, Europe, Middle East, and North Africa ........ .................. Roger Chaufournier Vice President, Development Policy ............................................... Hollis B. Chenery Vice President, Programming and Budgeting, and Vice President, Pension Fund ............... K. Georg Gabriel Vice President and General Counsel .............................................. Heribert Golsong Vice President and Controller ................................................ Masaya Hattori Regional Vice President, South Asia .............................................. W David Hopper Regional Vice President, East Asia and Pacific ................ ...................... S. Shahid Husain Regional Vice President, Western Africa ............. ............................. A. David Knox Vice President, Administration, Organization, Personnel Management ..................... . Martiin J. W M. Paijmans Vice President and Treasurer .............................................. . .Eugene H. Rotberg Vice President and Secretary .............................................. . .Timothy T Thahane Regional Vice President, Eastern Africa .......................................... . Willi A. Wapenhans Director-General, Operations Evaluation ......................................... . Mervyn L. Weiner Director, Projects Department, Eastern Africa ...................................... . Hans A. Adler Director, Country Programs Department 1, Western Africa ............... .. .. . .. . .. .. . . . Bilsel Alisbah Director Country Programs Department 11, Europe, Middle East, and North Africa ............ . Maurice P, Bart Director, International Relations Department ............................ .... .... .. . Shirley Boskey Deputy Controller and Director, Accounting Department ................ .. .. . .. .. . .. .. . Victor C. Chang Director, Urban Development Department ..................................... . ... Anthony A. Churchill Director, Compensation Department ............................................. .R. A. Clarke Director, Cashier's Department .............................................. . .Jean B. d e Boeck Director, Country Programs Department 11, Western Africa .................. ...... . Xavier de la Renaudiere Director, Development Research Center .......................................... . John H. Duloy Director, Projects Department, Western Africa ......................... ... .... ... .. . A. Sani El Darwish Director, Population, Health, and Nutrition Department .. ............................. John R. Evans Director, Industrial Projects Department ......................................... . Hans Fuchs Director, Country Programs Department 11, Eastern Africa ............... .. .. . .. . .. .. . . . Andre GuC Director, Education Department .................. ............................. Aklilu Habte Director Policy Planning and Program Review Department ............ .. . .. . .. . .. . .. . . Mahbub ul Haq Deputy Treasurer and Director, Treasury Operations .................... .. ... .. ... .. . . Hans C. Hittmair Director, Staff Retirement Plan Department ....................................... . Bernard J. Holiand Director, Economic Analysis and Projections Department .............................. . Helen Hughes Director, Country Programs Department, East Asia and Pacific . Edward V. K. laycox Bank/IDA Appendices 207 Appendix 8 Director, Operations Evaluation Department ......................................... Shiv S. Kapur Director, Country Programs Department I, Europe, Middle East, and North Africa ..... ......... Attila Karaosmanoglu Director, Projects Department, East Asia and Pacific ............ ...................... Syed Salar Kirmani Director, Country Programs Department I, Eastern Africa .......... ..................... Jochen Kraske Director, Country Programs Department 1, Latin America and the Caribbean ......... . . . . . . . Eugenio F Lari Environmental Adviser, Office of Environmental Affairs ............................... . James A. Lee Executive Secretary, Consultative Group on International Agricultural Research .............. . Michael L. Lejeune Director, Country Programs Department 11, Latin America and the Caribbean ......... . . . . . . . Enrique Lerdau Director, Information and Public Affairs Department ................................. . John E. Merriam Director, Economic Development Institute ................................... ..... . Ajit Mozoomdar Director, Computing Activities Department ................................ ...... . . Mervin E. Muller Director, Tokyo Office ............................................... .Se igo Nozaki Assistant Controller and Director, Loan Department ........ ......................... Stanley J. Perch Director, Projects Department, Europe, Middle East, and North Africa .......... . . . . . . . . . . . Robert Picciotto Director, Personnel Management Department ............. ......................... Hans Pollan Director, Projects Advisory Staff ................................................ Visvanathan Rajagopalan Director, Internal Auditing Department .......................................... . Lawrence N. Rapley Director, Organization Planning Department ........................................ .Bruce W. Rohrbacher Director, Energy Department .............................................. . .Y ves Rovani Director, Investment Department ................................................ Hugo J. H. Schielke Associate General Counsel ............................................... .Hugh N. Scott Director, European Office ............................................... . Rainer B. Steckhan Director, Development Economics Department . -.... .... ... .... .... ... ... ......Everardus 1 Stoutjesdijk Director, Projects Department, South Asia ........................ . ............. Wilfried P Thalwitz Director, Industrial Development and Finance Department .............. .. . .. . .. . .. . .. . Stokes M. Tolbert Director, Administrative Services Department ...................................... . James E. Twining, Jr Director, Financial Operations .............................................. . .Josep h P Uhrig Director, Projects Department, Latin America and the Caribbean ........................ . Suitbertus M. L. van der Meer Director, Projects Staff ............................................... .H erman G. van der Tak Director, Programming and Budgeting Department .................................. . Heinz Vergin Director, Development Policy .............................................. . .E. Bevan Waide Director, Country Programs Department, South Asia ................................. . Michael H. Wiehen Director, Transportation, Water, and Telecommunications Department ..................... . Christopher R. Willoughby Director, Financial Policy and Analysis Department ................... ... .. .. ... .. .. . D. Joseph Wood Director, Agriculture and Rural Development Department ........... .. .......... . Montague Yudelman 208 Bank/IDA Appendices World Bank Offices July 1, 1981 Headquarters: 1818 H Street, N.W, Washington, D.C. 20433, U.S.A. New York Office Julian P Grenfell World Bark Special Representative for c/o United Nations United Nations Organizations Room 2435, Secretariat Bu.ding New York. N.Y. 10017, U.S.A. European Office Rainer B. Steckhan World Bark Director 66, avenue d'Idna 75116 Paris. France London Office New Zealand House (15th foor) London SWI Y4TE, England Geneva Office Mahmud Burney World Bank World Bank Representative to ITC Building UN Organizations-Geneva 54 Rue de Montbrillant Geneva, Switzerland (mailing address: PO. Box 104, 1211 Geneva 20 CIC, Switzerland) Tokyo Office Seigo Nozaki World Bank Director Kokusai Build ng 1-1, Marunouchi 3-chome Chiyoda-ku, Tokyo 100, Japan Regional Mission G. David Loos World Bank in Eastern Africa Director Extelcoms House Ha le Selassie Avenue Nairobi, Kenya (mailing address: PO. Box 30577) Regional Mission Serge Guetta World Bank in Western Africa Chief Immeuble Shell 64 Avenue Lamblin Abidjan, Ivory Coast (mailing address: B.P 185C) Regional Mission Hendrik van der Heijden World Bank in Thailand Chief Udom Vidhya Building 956 Rama IV Road Sala Daeng Bangkok 5, Thailand Afghanistan Resident Representative c/o UNDP PC. Box 5 Kabu , Afghanistan Bangladesh Alexander Storrar Resident Mission, World Bank Chief 222 New Eskaton Road Dacca, Bangladesh (mailing address: G.PO. Box 97) Bolivia Mahmood A. Ayub Banco Mundial Residen. Representative Edificio Banco Nacional de Bu/via (43 Piso) Avenida Camacho Esq. Ca le Colon La Paz. Bolivia (mailing address: Casil a 8692) Burundi Jerome F Chevallier World Bank Residen, Representative 45, Avenue de la Poste Bujumbura, Burundi (ma ling address: B.P 2637) Cameroon Raymond Rabeharisoa World Bank Resident Representative Immeuble Concorde Angle Avenue El Hadj Ahmadou Ahidjo et Avenue J. F Kennedy Yaounde, Cameroon (mailing address: B.P 1128) Colombia Alfredo D. Gutierrez Banco Mundial Resident Representative Edifciio "Aseguradora del Valle" Carrera 10, No. 24-55 (Piso 17i Bogota D.E., Colombia (mailing address: Apartado Aereo 10229) Bank/IDA Appendices 209 Appendix 9 Ethiopia Resident Representative World Bank Resident Mission l.B.TE. New Telecommunications Building (First Floor) Churchill Road Addis Ababa, Ethiopia (mailing address PO. Box 5515) Ghana Resident Representative World Bank Resident Mission c/o Royal Guardian Exchange Assurance Building, Head Office High Street Accra. Ghana (mailing address: PO. Box M27) India Jean-David Roulet World Bank Resident Mission Chief New Delhi, India (mailing address: PO. Box 416) Indonesia Russell J. Cheetham World Bank Resident Staff in Indonesia Director Arthaloka Building (8th floor) 2 Jalan Jendral Sudirman Jakarta, Indonesia (mailing address: PO. Box 324/JKT) Mali Michael J. Furst World Bank Resident Representative Quartier du Pont rue Square Lumumba Bamako, Mali (mailing address. B.P 1864) Nepal Richard G. Abbott World Bank Resident Representative R.N.A.C Building (First Floor) Kathmandu, Nepal (mailing address: PR. Box 798) Nigeria Ronald H. S. Fennell World Bank Resident Representative 30 Macarthy Street Lagos, Nigeria (mailing address: PO. Box 127) Pakistan Wolfgang E. Siebeck Resident Mission, World Bank Chief Islamabad, Pakistan (mailing address. PO. Box 1025) Peru Elkyn Chaparro Banco Mundial Resident Representative Avenida Centrai 643 (1° Piso) San Isidro Lima, Peru (mnailing address: Apartado 4480) Rwanda Jerome F Chevallier World Bank Resident Representative Kigali. Rwanda (mailing address: PO. Box 609) Saudi Arabia Guy de Lusignan World Bank Resident Mission Director Riyadh, Saudi Arabia (mailing address: PR. Box 5900) Senegal Resident Representative World Bank Immeuble S D.l H. 3, Place de lI'ndependance Dakar, Senegal (mailing address B.P 3296) Somalia Ali N. Memon World Bank Resident Representative c/o Somali Commercial & Savings Bank Building (4th Floor) Mogadishu, Somalia (mailing address: PO. Box 1825) Sri Lanka David Thomas World Bank Resident Representative People's Bank, Head Office (lOth Floor) Colombo 2, Sri Lanka (mailing address: PR. Box 1761) (continued) 210 Bank/IDA Appendices World Bank Offices (continuedJ Appendix 9 July 1, 1981 Sudan Shawki Farag World Bank Resident Representative 28 Block 2H, Baladia Street Khartoum, Sudan (mailing address: PO. Box 2211) Tanzania Robert H. Nooter World Bank Resident Representative N.I.C. Building (7th Floor, B) Dar es Salaam, Tanzania (mailing address: PO. Box 2054) Upper Volta Mamadou Dia World Bank Resident Representative Avenue Monseigneur Thevenoud Ouagadougou, Upper Volta (mailing address: B.P 622) Zaire Roberto Chadwick World Bank Resident Representative Building UZB, Avenue des Aviateurs Kinshasa 1, Republic ot Zaire (mailing address: PO. Box 14816) Zambia Resident Representative World Bank Kulima Tower (13th Floor) Katunjila Road Lusaka, Zambia (mailing address: P.O. Box 35410) World Bank Headquarters: 1818 H Street, NW. Washington, D.C. 20433, USA. Telephone: (202) 477-1234 Cable address: INTBAFRAD WASHINGTONDC European Office: 66, avenue d'lena 75116 Paris, France Tokyo Office: Kokusai Building 1-1 Marunouchi 3-chome Chiyoda-ku, Tokyo 100, Japan