58664 Hopper Outlines Progress and Future VOL 7 I NO 2 FEBRUARY 1988 The CGIAR: Poised In this issue: Articles for the '90s 2 TIll ClIII: , ..... fir •• '.... An interview with David Hopper. • . . .. ........ Women entrepreneurs are amajor force in developing countries. 8 I LItIII ....... lt·s LeapYear. Senior Vice President W David Hop­ women. These are difficult challenges, Are you looking for a spouse? per, Chairman and one of the founders 11 T._ 1IaIaItrtIIo1. Alan Berg's but certainly no more so than the ones new book offers suggestions. of the Consultative Group on Interna­ we faced 20 years ago when the Mal­ solutions. tional Agricultural Research (CGIAR), thusians were suggesting that we write ,. I C ....IIItII......... CltIlI1l••• recently shared his views with The off many of the countries in Asia that Ann Hammond and the Staff Bank's World about food crop re­ are now quite capable of producing 11 'M_•• Association's agenda. for CM• • Delegates at search for developing countries. their own food. work on accounting manual. . You recently chaired your Q: What are the chances that the CG Departments Q • first meeting of the CGIAR since assuming leadership of the Group centers will be able to develop new crop varieties for Africa that will equal 12 a... RIcard: Ibrahim Shihata last May. How have things changed in what rice and wheat did for Asia and discusses the World Bank and Latin America. human rights. the 10 years since you last worked with , . AnI....... ... the CG and where do you think the Hopper: The former Chairman of 21 StIfl e.... Group is heading? our Technical Advisory Committee, 23 TIll O .....r on snow. themedia. Hopper: As you know, the CGIAR Professor Guy Camus of France, point­ and Congress, 24 .....u. has one of the best track records of all ed out during our annual meeting that the development assistance programs it is unlikely that this will happen any that the Bank has been involved with. time soon. There are several reasons COVER: What do these people have in It's fair to say that CGIAR research has for this. One is that the green revolu­ common? been an important factor in helping tion in wheat and rice occurred on Photos by Jill Roessner much of the developing world become irrigated land, and when you work more or less self-sufficient in food pro­ with irrigated land you wipe out a lot duction. The most obvious examples of constraints. In most of the countries are wheat and rice, but we're also that benefited from the green revolu­ seeing substantial impact with other tion you also had access to both good crops. varieties and to the inputs needed to A great many things have changed, grow them. however, since I was last associated In Africa the situation is quite differ­ with CGIAR. Back in 1978 our budget ent. We do not, for example, have was only about $75 million. It's now much of a history for the crops we are nearly three times that. Also, the sys­ dealing with in Africa. Professor Ca­ tem has become a good deal more mus pointed out, however, that there is complex. We have many more donors good reason to expect significant in­ than we did 10 y.ears ago and the issues creases in crops such as cassava and The Bank's World, Vol . 7, No. 2. Published that we are facing are more difficult maize, both of which are important monthly in Washington, D.C., by the Media and and more pressing. From an institu­ commodities in Africa and both of Communications Division of the World Bank for all employees and retirees of the World Bank! tional point of view, the challenge is to . which are receiving significant atten­ International Anance Corporation, 1818 H St., maintain efficiency without sacrificing tion at the moment. I think we're also N.W., Room E-8045. Washington, D.C. 20433. Thierry Sagnier, Editor autonomy. We also have to come to likely to see progress with sorghum Jilt Roessner, Associate Editor grips in a substantive way with such and millet, which are important crops Morallina George. Editorial Assistant Bill Fraser. Designer issues as African food production, pro­ in the drier regions where food prob­ duction sustain ability and the role of lems are particularly critical. more productive lands, which also cre­ ates environmental problems?' When my grandfather went to school it used to be called good hus­ bandry. It meant that you could pass the farm on to your grandchildren, you hoped, in better shape than you re­ ceived it from your grandfather. It is a very, very difficult issue, and one in which you raise questions about ex­ hausting soils. You raise questions about how much investment do you put in now that is not going to be David Hopper immediately recouped, the short-term kind of payoff versus the longer term. Q: Isn't a lot of this going to depend should also help to improve coordina­ I can assure you that if the price of on national progress, and isn't it true tion within the donor community. wheat went to $14 a bushel, a lot of that local systems in Africa are pretty There also needs to be a very functional land would blow away because farmers weak at the moment? discussion with our colleagues who are would be out there planting wheat and Hopper: Well, it varies of course, in charge of investment activities. I to hell with the next generation. Most and there are some pretty good na­ don't see how we are ever going to agricultural researchers are very much tional systems in Africa, but, generally conquer the African agricultural prob­ aware of these issues of preserving the African programs require substantial lem until we conquer things like the resources. We now have a perspective support. Centers and donors both rec­ African transport problem and the Af­ on the long-term implications of mod­ ognize that the effectiveness of re­ rican education problem. ern agricultural technology, and that's search depends on having strong na­ Q: You mentioned a moment ago the what we are trying to get at in these tional programs in place that can adapt question of sustain ability. How does issues of sustainability. research results to local conditions. Re­ this issue fit into the CG's agenda? Q: Is this an ethical question as well? member, the CG centers work exclu­ Hopper: A special subcommittee of Hopper: Sure, very much so. The sively through the national programs. the CG Technical Advisory Committee problem is to decide the degree to So what we want to do is to ensure a has been studying the issue for some which you're a custodian of resources strong level of partnership and collab­ time, and will present its report at our for future generations or the degree to oration. I think the Group takes this next meeting. We'll also be discussing which you draw down now what may issue pretty seriously. We now have the Brundtland report on the environ­ be totally non-renewable. The temper­ one center whose sole function is to ment at the meeting to assess its impli­ ate soils are much more forgiving than assist developing countries strengthen cations for the CG system. The ques­ tropical environments or mountain en­ local programs. tion that we need to answer is how do vironments. Whole civilizations have But the problems aren't limited sole­ you grow enough food to feed a rapidly been destroyed by salts drawn up or ly to national programs or to the CG. I expanding population in a way that laid down by irrigation systems. That's hope that through SPAAR (Special Pro­ doesn't destroy the resources you need what happened in Mesopotamia and it gram for African Agricultural Re­ to continue production? Do you try to can happen again, and indeed is hap­ search) we'll be able to get a better extend productivity on to more mar­ pening in many parts of the world handle on sharpening the definitions ginallands where the risk to the envi­ where we are over-irrigating. and classifications of research potential ronment is very high, or do you try Q: What about insect resistance to and research needs in Africa. SPAAR instead to intensify production on the pesticides? THE BANK ' S WORLD I FEBRUARY 1988 3 , .:,. A millet harvest made more bountiful thanks to ICRISAT, the International Crops Research Institute for the Semi-Arid Tropics. Hopper: The Group recently dis­ input agriculture getting away from a own resistances to pests and patho­ cussed the problems of pest and path­ heavy dependence on chemical fertiliz­ gens, rather than using artificial chem­ ogen control. There is considerable ers and pesticides? icals or other forms of resistances? awareness of these issues and this is Hopper: I'm not sure that it will go Q: A lot of people seem to think that very much a part of the sustain ability quite that far, but certainly the issue of many of the problems developing question that's now on the CG's pal­ costs of production which are entailed countries face can be solved through ette. As I've already mentioned, we will in the use of pesticides, the use of biotechnology. Up until now, scientists be using the Brundtland Commission herbicides, the use of fertilizers, are at the CG centers have pursued fairly report as one of our texts at our next very much there. How can you reduce traditional research paths. Is that likely meeting to look at the concerns of that those so that you lower the impact of to change? Commission regarding the conduct of these costs in production and lower the Hopper: Well I think it has to, not CG research. With the new Environ­ utilization of these chemical materials? because biotechnology is an answer to mental Department in the Bank and Biological fixation of nitrogen is part of all of our problems, but because of the with other collaborating agencies, the program ofseveral of the centers, tremendous efficiencies that it has to we'll see if we can't line up what the and they are also looking at better biol­ offer in conducting research. Some of implications of that major document ogical controls and the possibility of the centers are already involved quite are for the conduct and future work of incorporating pesticides into plants. heavily in this. For example, our live­ the CG centers. We know that insect resistance is stock laboratory in Nairobi is a major Q: On that same subject, is there a genetically transferred in plants. Can center for molecular biology, a term sense that basic research and farming we identify these genes and put them that I prefer to biotechnology. systems might be moving in the direc­ into the plants or put plants in a cross­ During our recent meetings in Wash­ tion of the Rodale approach, the low­ ing program so that they carry their ington, the chairman of one of our 4 THE BANK'S WORLD I FEBRUARY 1988 These newmaterials will likely hav:e disease center boards pointed out the first and insect resistance including one who was recently ap­ genetically-engineered cultivars should genes ... The pointed director of research. We are be in production in about five years. also looking for women board mem­ These new materials will likely have implications ofthis on bers, and, I think, representation by disease and insect resistance genes. women on our boards is generally up. And it should be possible to give crop developing countries We're not putting quota targets on this or pasture plants the ability to resist are enonnous and yet, but we have several donor delega­ herbicides. The implications of this on tions who remind us that it is all very developing countries are enormous can't be ignored well to talk about women, but that and can't be ignored simply because numbers speak for themselves. some people think that biotechnology simply because some Q: One of the things that people isn't going to be appropriate in devel­ people think don't seem to understand about the oping countries. Just the opposite is CGIAR is that there are a half dozen or probably true. In fact, the environmen­ biotechnology isn't so centers that do similar types of re­ tal implications alone are sufficient to search and are funded by the same justify a strong case for more of this going to be donors as the CG centers, but are not kind of research. That kind of invest­ appropriate in part of the system. How do you explain ment, however, will probably mean that? cuts in some of the other things that developing countries. Hopper: Well, it confuses me too, we're doing. and I hope that we'll be able to make Q: The Bank and many other donor some changes that help us to truly agencies are focusing more and more have a role to play in bringing process­ become a consultative group on inter­ these days on the i~sues of women in es and methods to national systems national agricultural research. I've development. Can you tell us where that encourage them to make research called for the Group to take a closer the CG stands in this area? decisions and technology choices that look at the role of the centers outside Hopper: When we talk about wom­ take this into account. The CGIAR do­ the CG structure, especially since en in agriculture, we're really talking nors have also asked that gender be much of their work is relevant to our about sex-neutral technologies. But included as an explicit issue in the per­ concerns about production sustainabil­ what we refer to as sex-neutrals very iodic reviews of center research and ity and the question of income for often has in its cultural applications management. These are extremely rig­ resource-poor farmers . I think there is real sex differentiations. This was orous exercises, and the centers take considerable support for this proposi­ drawn to the Group's attention at a them very seriously. tion among our donors and many of seminar we held during our annual Q: What about women within the the centers. When we founded the CG meeting. One of the delegates pointed CG? there were just a few centers. We've out that although Asian women are Hopper: Nobody can sit in our meet­ become a much more interdependent traditionally responsible for cleaning ings and not recognize that we have a world since then. rice, in one instance, when rice dehull­ problem. The women are outnum­ Q: SO the old idea of centers of ex­ ers were introduced, the job was taken bered many times over. But it is in­ cellence is more diffuse now? over by men and the women lost the teresting that we are getting in more Hopper: I don't think we're ever income. women as CG scientists, as women going to lose the goal of excellence. But This example points out that those of themselves extend their career activi­ the world has changed a bit in the last us involved in research need to do a lot ties. There are the usual set of impedi­ few decades, and the CG is making more to sensitize ourselves to the ques­ ments at work here, but we have a what in the Bank parlance would be a tions and issues that concern women. number of husband and wife teams at structural adjustment to this new cir­ It's been suggested that the CG centers centers, and we have women scientists, cumstance. III THE BANK'S WORLD I FEBRUARY 1988 5 Seminar Explores " Small-Scale Enterprises Women on the Move by Maurizia Tovo t the corner of a busy street in among the themes debated at the Inter­ a priority on the agenda of most donor A Manila, Rosa once sold tea. Her home was just a few steps away; she national Seminar on Women in Micro and Small-Scale Enterprise (MSE) De­ agencies. MSEs represent a messy, un­ structured, hard to define sector-im­ could hear the voices of her children velopment. The seminar was organized possible to plan and often beyond the playing and would occasionally check by the Canadian International Develop­ reach of official institutions. But eco­ the food cooking on the stove. As the ment Agency (CIDA) in recognition of nomic crisis and population pressures streets grew busier and neighbors the crucial role little businesses play in have forced many decision-makers to learned how good Rosa's tea was, prof­ the economy of developing countries, look at MSE employment and income its increased. Rosa was able to afford and of the involvement of women in potentials. new clothes for the children, repair an such businesses. In the countryside, not everyone can old bicycle, buy better food. be a farmer, and job opportunities are Then she realized that somebody Sharp economic realities scarce. So small enterprises have to else could share her luck. With her Micro enterprises are defined as become an integral part of rural devel­ savings, Rosa helped her sister set up a unincorporated income-generating ac­ opment, to provide employment and similar stand in front of her home a tivities with up to five employees. needed services and products. In the couple of blocks away. Now, Rosa's Small-scale enterprises have up to 25 ever-growing megacities of the devel­ sister has bought new clothes for her employees, and constitute as much as oping world, micro enterprises are of­ children, and the family's diet has im­ 90 percent of incorporated businesses ten the only escape from a life more proved. in developing countries. degrading than the misery left behind For three days, members of the Do­ in the village-the best possibility of 4 Human economy' nor Agency's Steering Committee on survival for the poorest. Whether or not Rosa has been a Small Enterprise Development, good entrepreneur depends on your chaired by the Bank, and representa­ Obstacles multiply point of view. She chose not to plow tives of non-governmental organiza­ MSEs have been estimated to ac­ her profits into expanding her busi­ tions (NGOs) and government agencies count for 50 percent to 60 percent of ness, but continued in the same little reviewed experiences, discussed prob­ tc,tal employment in low-income coun­ tea stall, selling the same product, em­ lems, and challenged each other to find tries, with shares as high as 75 percent ploying the same methods, and using solutions. in cities like Lima or New Delhi. her good fortune to increase the wel­ The analysis focused on sharp eco­ The majority of countries now have fare of others. Rosa, like many other nomic realities, without polemics. As specialized agencies to promote small­ small entrepreneurs, does not operate CIDA's President, Margaret Catley­ scale enterprises, but they face daunt­ by conventional investment principles, Carson, said: IIWe all know the basic ing obstacles. When the entrepreneurs but by the principle of "human econo­ facts, the sad litany ... women are half are women, these obstacles multiply my," where success is not determined the world's population, raise half the since women's productive and reprod­ by increased individual profit but rath­ food, put in two-thirds of the working uctive roles are inextricably linked, and er by the capacity of providing support hours, but receive only one- tenth the one limits the other. for others. wages and own 1 percent of the prop­ As CIDA's background paper stated: The concept of "human economy," erty." While women are the main edu­ IIWomen are virtually ignored by the introduced by Irene Tinker, was cators of the young, they make up most modernization process ... While men of the world's illiterates. In developing were encouraged to participate in Editor's note: Maurizia Tovo works in countries, women are the last to eat modernized agriculture and capital-in­ ED! where she manages a project on and, in times of famine or epidemic, tensive industry, women were general­ Entrepreneurship Development for Af­ the first to qie. ly left behind to mind the children at rican Women. MSE development has seldom been home." In addition, women are often 6 THE BANK'S WORLD I FEBRUARY 1988 to help women entrepreneurs, old atti­ to the role of international donors. tudes get in the way. Such was the case While the conference themes apply to in Tanzania where some village women all institutions working for the promo­ were given a maize mill by a donor. tion of women-owned MSEs, the more Grinding maize is women's work and influential agencies were urged partic­ the project was considered a women's ularly to take advantage of their influ­ project. As a result, the group was low ence to encourage governments to on the priority list for distribution of approve policies and procedures favor­ diesel fuel to run the mill. The accounts able to MSEs and to women. They of the project were kept by a man, include the reformulation of laws and even though he had received no formal regulations that inhibit women's full training to qualify him for the job. Prof­ participation in the economy; the legi­ its from the mill were deposited in the timization of MSEs through easy licen­ village account because women did not sing requirements; and preferential know how to deal with banks-most of treatment of small, women-owned en­ them had never even seen a bank-and terprises in procurement contracts to could not afford "wasting" two days to offset some of the constraints these go to a bank in the city. When a digni­ businesses face. tary came to the village, the women's While the World Bank has long ad­ funds were used to pay for entertain­ vocated integrating women into devel­ ment without the women's consent. opment, it has·only recently taken special project initiatives for women Importance of training entrepreneurs. In Zaire, a project to So what can be done to help women­ promote small-scale enterprises has a owned MSEs grow and prosper? Al­ fund set aside for women; in the South­ though the themes discussed in the ern Africa Development Coordination handicapped by laws and practices that seminar varied from "human econo­ Conference (SADCC) sub-region, an rob them of autonomous adult status. my" to the role of appropriate technol­ EDI project financed by the Italian The result is that, although MSE credit ogy, the following issues kept emerg­ government will develop and deliver a programs are for men and women ing: training program for promoters of alike, women's participation rarely ex­ - the importance of training, and women entrepreneurs in four coun­ ceeds 20 percent. It is 15 percent in the need to train trainers in MSE devel­ tries; in Uganda, a project to provide Peru's Banco Industrial program, and opment as extension workers; training, credit, and technical assis­ 11 percent in the programs of 38 major - the crucial role played by NGOs, tance to potential women entre­ Indian banks. which are often the only organizations preneurs is under study; in The Gam­ able to reach the beneficiaries, and are bia and in Gabon, Women's World Values also playa role knowledgeable about their situation; Banking, an NGO, will provide Cultural and religious values also - the need to set up flexible credit outreach to bring in and guarantee playa role. In Zaire, for example, programs-whether through substitu­ women clients for Bank-financed lines women must obtain their husbands' tion of personal or group guarantees of credit. permission to travel, and many coun­ for physical collateral requirements tries still require that women obtain a (the Grameen Bank in Bangladesh pro­ Increased ability to act male guardian's permission to enter vides one example) or less time-con­ As rapporteur for one of the ses­ into any kind of contract or to apply for suming procedures (women's time is sions, William F. Steel, of the Industry loans. In Bangladesh, religious tradi­ limited.) It is essential to find formulas Development Division, observed: "The tion prevents women entrepreneurs that give women easier access to capi­ discussion pointed out the importance from selling their wares directly to the tal; of raising the income of women in de­ public, forcing them to rely on middle­ - the need to ensure the active par­ veloping countries. Donor agencies men. Training courses away from ticipation of beneficiaries in the design need to find more effective ways of home are open to women in principle and implementation of programs to en­ enhancing women's dual roles as man­ but, in reality, women cannot leave courage MSEs, and specifically to in­ agers of both the businesses and their household responsibilities for ex­ volve women; and homes. Their increased ability to act tended periods, especially in the small - the importance of outreach ef­ effectively as entrepreneurs will deter­ rural communities of many African forts and networking among donors, mine how rapidly their income-and and Asian countries. NGOs, and beneficiaries. that of the society~an grow. It's up Even when special efforts are made One part of the seminar was devoted to us to grow with them. " 11 THE BANK'S WORLD I FEBRUARY 1988 7 Five Bank Couples and How They Met , 1 A Little Romance by Jill Roessner and Morallina F. George ebruary 14 is St. Valentine's Day, F traditionally the time to send a token of affection to the one you love. And this is a Leap Year, so another tradition gives women their once­ every-four-year opportunity to take the initiative in proposing marriage. Fur­ thermore, spring isjust around the corner and, according to Alfred, Lord Tennyson, that's when a young man's fancy lightly turns to thoughts of love ... If all of this is not sufficient reason to include a little romance in this issue, The Bank's World's editor, Thierry Sagnier, is getting married this month-to another Bank staffer, Mai Xuan Nguyen. They met in a Multi­ Mate class! There are 168 Bank couples. Not all of them met at the Bank, but some of .those who did agreed to be inter­ viewed. Love in the library Eric McMillan and Chris Windheuser Photos by Jill Roessner Chris Windheuser, a librarian in the Sectoral Library, is vivacious and dis­ armingly frank. Her brown eyes spar­ sought Eric's help, telling him that have been made from time to time. kle as she describes the circumstances she'd made a start on it. She soon especially when the individuals have leading to her marriage to Language discovered that "that's like telling a the sort of qualifications that preclude Service's Eric McMillan. He is a per­ surgeon you've taken your own appen­ their being able to move to another fect foil for her lively personality, sit­ dix out, but he can sew you up." Evi­ part of the institution. This was partic­ ting quietly, smiling. dently, she'd gotten off on the wrong ularly true in ADM where-like Eric They were both working in the L foot. and Chris-there were specialists in so building in 1979-she was then a li­ Nevertheless, a week later Eric ap­ many different disciplines that there brarian in the Cartography Division, peared in her office with the finished would be no hierarchical relationship. while he translated on the floor below. translation-and tickets to a play. Eric McMillan is Irish, his wife's a ''I'd taken a survey," Chris admits, Why? "I was intellectually impressed," U.S. citizen, "so now he's my resident "with a bit of help from a friend on that he said. alien, " says Chris. "And you get home floor. There were three single men­ ''I'm a librarian, so I checked him leave," counters her husband, point­ but one got married so that left Eric out," says Chris, laughing. ing out the advantages in a marriage and one other. " Two years later they were married, w here one of the partners enjoys expa­ Chris's opportunity to introduce her­ one of several couples in ADM to wed. triate benefits and the other can pro­ self came when she needed an article In principle, the Bank does not permit vide resident status in the United States translated from German into English. husband and wife to work in the same (along with the relevant tax breaks). She did part of the work herself, then vice presidential unit, but exceptions "Something to keep in mind if you're 8 THE BANK'S WORLD I FEBRUARY 1988 making a shopping list," says Eric, but from the fond glances that are ex­ changed between the couple, one doubts these benefits were an overrid­ ing consideration. Traveler's tale Cora Shaw is an Argentine-born Chinese. While studying in Geneva, a man she knew suggested she look up his brother Bernard when she went to work at the Bank at the end of 1979. "But," she said, "you know how it is when people give you names of people to contact ... " She never got around to it. Eventually, Bernard Veuthey, who is Swiss, called her. They married in July 1982 and now have two small daugh­ ters-who are fluent in Chinese, French and English. Bernard Veu­ they's bulletin board is covered with photos of the little girls, along with Bernard Veuthey and Cora Shaw their older brother, his son from a former marriage. Since both parents work in Opera­ tiently with a dozen red roses. tions, both must undertake mission Within weeks they were engaged. travel-but never at the same time. Wedding bells followed in December. "We have been very fortunate in hav­ Now, five years later, and with a ing division chiefs who are concerned two-year-old daughter, they both laugh about family life," they say. when retelling the unusual encounter. Anthony, from the British Isles, says Line encounter of his Burmese wife, "It was her eyes March 1982. The I building cafete­ that captivated me. I couldn't place her ria. nationality at all." It is his first day in the Bank. He sees "And I thought he was weird and this petite and pretty girl in the line. On extremely forward," adds Tin, an Ad­ an impulse, he approaches. She does ministrative Secretary in IFC's Depart­ not acknowledge him. The second day, ment of Investments, Asia II, Division he tries again. She ignores him again. II. Anthony is an Adviser in the Debt Not wishing to be publicly snubbed Management and Financial Advisory further, the next day he drops a note on Services Department. her tray and quickly walks away. Tin, who had been at the Bank one "My name is Anthony Toft. I am new year then, was quite familiar with the in the Bank. My extension is xxxxx. more conservative approach men gen­ Please call me," reads the note. erally take here. "But Anthony threw Curiosity getting the better of her, me completely off-guard," she remi­ Tin Swe Aye calls Anthony two days nisces. later. "What do you want?" she asks in Their wedding was equally unusual, a decidedly unfriendly tone. a mixed Buddhist and Christian cere­ He offers the usual lines to invite her mony in an Old Town Alexandria house on a first date. They compromise on a during a heavy snowstorm. lunch date at Shezan. How do they reconcile their cultural "She was five hours late!" says An­ differences? thony, who nevertheless waited pa- They smile and Tin replies: "There Tin Swe Aye and Anthony Toft THE BANK'S WORLD I FEBRUARY 1988 9 wasn't the need for much adjustment." who now works in the Corporation's On a lighter note, she adds, "Anyway, Portfolio Operations Support Unit. Anthony loves Asian food." And Arian­ "I guess I really noticed her first at na (their daughter) speaks both English the departmental picnic," adds Gaiv. and Burmese. "And the rest is history." He continues more seriously: "I Summer romance think I am the only summer intern I "When I came to IFC in the summer can recall whose summer romance de­ of 1985 as an intern, I was hoping that veloped into marriage. In fact, I had a my assignment would lead to a more real problem convincing her that I was permanent relationship. But I was serious. " thinking in terms of employment, not "He is such a smooth talker that I marriage!" quips Gaiv Tata. still don't believe half of what he says," Gaiv met his wife, Elizabeth Medina, responds Elizabeth. when they were both working in the But serious he was. When he re­ then Management Systems and Ac­ turned to the University of Pennsylva­ counting Department of IFC. nia's Wharton School of Business to "We were working in different divi­ complete his MBA program, they car­ sions and even though we didn't ac­ ried on a long-distance romance. tually work together, we saw each Shortly after his graduation, he moved other often," remembers Elizabeth, to Washington and they were married Gaiv Tata and Elizabeth Medina in March 1986. "I've been working as a consultant in the Information, Technology and Fa­ He's from South Africa, his wife cilities Department until now," ex­ from Zimbabwe, and they met in 1978 plains Gaiv, who was recently appoint­ when Alan first came to Washington to ed as a regular staff member in the join the Bank as a YP and was taken to Financial Management Division of ITF. a party at Caroline's apartment. Ac­ Elizabeth, a Philippine national, and cording to Alan, the relationship "blos­ Gaiv, who hails from India, say they somed in the Bank," but when, after had very few problems adjusting to almost a decade, Alan telephoned Car­ each other's culture and customs. oline's mother to say he would like to They say that being a Bank couple marry her daughter in May, she can be provides them with common friends, forgiven for asking, "what year?" some common shop talk and a chance They actually had two weddings. to share their daily commute. They eloped to Las Vegas for a civil "And to a large extent, both of us ceremony in April, then followed that being Asians, we have the same val­ with a religious ceremony and recep­ ues," adds Elizabeth. They also speak tion in May. Alan almost missed the a common language, English. second event. He was on mission in And the topic of overriding interest Chile and it was very difficult getting to them? Their son Karl, who is a little the work finished in time for this rather over one year old. important occasion. When he finally persuaded the Chileans that he was No excuses trying to get back to Washington for his Caroline Cumming married Alan own wedding, they sprang into action Gelb last spring. It was not a whirlwind and did everything possible to expedite romance. In fact, they say their mar­ his return. He's now decided that's a riage can be attributed to the Bank's good way to get information quickly, reorganization. They had been work­ and offers it as a handy line for other ing in the same department-Industry. staff, though you can probably use it If they married, one of them would only once per country. have had to move to another depart­ At least Caroline's mother won't ment. But, reorganization put Alan in have to wait so long to become a grand­ PPR and Caroline in Asia, and they say mother. There will be a new little Gelb Alan Gelb and Caroline Cumming Gelb they"ran out of excuses ... " arriving in March. II 10 THE BANK'S WORLD I FEBRUARY 1988 BankBook Shelf ,.". Target: Malnutrition by Thierry Sagnier his is the way Alan Berg tells the and this despite remarkable advances Targeting efforts may vary accord­ T story: immediately after the press briefing for his new book, "Malnu­ in international agricultural research and increased crops in many develop­ ing to numerous criteria that include, among others, season, place, age trition-What Can Be Done?" (Johns ing countries. "What the study groups, and even local diet. In most of Hopkins), held during the Annual shows," he says, "is that despite debts Sub-Saharan Africa, for example, Meetings, he was approached by an and lagging exports, despite the finan­ much of the severe malnutrition strikes Indianjournalist. "The man was very cial crisis and the austerity programs two or three months before harvest, apologetic," Mr. Berg remembers, "he many countries have had to adjust to, and some countries in the region are made sure no one was listening, then there are now tested techniques avail­ now looking into how programs can be confided that, in the plethora of meet­ able to reduce malnutrition substantial­ concentrated to give greater assistance ings, he had mistakenly gone to the ly, quickly, afford ably , and, without during those months. In northeast wrong one. But, as long as he had fostering dependence on welfare. " Thailand, programs provide food only wasted half the morning, he wanted to to areas where malnutrition is cen­ ask me a question. " Greater impact tered. In Bangladesh, where rice is the The journalist was curious. "What," He notes that, in many countries, preferred staple, it was sorghum that he asked, "is significant about this food stamps and other food subsidy was subsidized and thus targeted to the book?" Mr. Berg paused to think. This programs can be costly. "In Egypt, it's poor. Though sorghum is considered is the type of question authors learn to 16 percent of the national budget," he inferior to rice by Bangladeshis, it is abhor, for it trivializes their work and says, "in Morocco it's 12, and in China nutritionally splendid. forces them in minutes to summarize it's 20. What makes the new approach particularly attractive is that it is af­ Fragile range of the lifecycle the labors of months or years. But he answered nonetheless: perhaps the fordable, costing on the order of 1 or 2 And, in the poorest districts of the book's significance was that it present­ percent of the national budgets, and Indian state of Tamil Nadu, the aim is ed a ray of hope for the poor during a still has a greater impact on malnutri­ to reach those in the most fragile range week that had seemed filled with bad tion than the traditional programs. " of the life cycle: children between 6 and news of crippling national debts and The key is "targeting." Targeting 36 months, and women either preg­ jarring structural ~djustment being limits benefits as much as possible to nant or breast-feeding. The results of prescribed to address them. It offers those in greatest need, while minimiz­ this 9,000-village program were dra­ solutions that can be applied inexpen­ ing unavoidable "leakage" to groups matic. Serious and severe malnutrition sively even in bad times. that do not require special attention. has declined by about 50 percent, and This is a shift from the thinking prac­ children who had participated in the Published in India and Sri Lanka ticed in many countries, where food program for two years weigh signifi­ The journalist filed his story, and it subsidies are available to one and all. cantly more than children who hadn't. was published both in India and Sri "Take the situation in Brazil," he says, All for $11 a year per child. Lanka. "As it turns out," Mr. Berg "where a $1 billion wheat subsidy was "So it can be done," says Mr. Berg. recalls, "Sri Lankan Prime Minister available to rich and poor alike." "Obviously, addressing the underlying Premadasa apparently read the story. Nor does Mr. Berg particularly trust causes of poverty remains a vitally Jim Greene, a nutrition specialist with income as a criterion toward food sub­ important objective. But the time re­ the Asia Technical Department, was in sidyeligibility. "It sounds sensible," he quired to reach the most impover­ Colombo at the time, and he was invit­ agrees, "but more often than not it ished, and the immediacy of the nutri­ ed to meet the Prime Minister and doesn't work. Even here in the United tion problem, argue for a continuing other senior officials to discuss wheth­ States, where income reporting is fairly direct attack on nutritional deficiencies er some of the work described in the systematized, the food stamp program as well. The point is that those govern­ book could be replicated in Sri Lanka. ·;Jhas often been accused of abuse. So, in ments wanting to make the effort now The last I heard, the Cabinet had countries where income reporting is have effective and affordable measures agreed to pursue this, and further dis­ less reliable, and where income often is at hand." • cussions are expected. " food grown by the household itself, Editor's Note: "Malnutrition- What Alan Berg sees malnutrition as a monitoring eligibility is all but impossi­ Can Be Done?" is available in the main threat to the poor of the world, ble. " Book Store, 1-1060. THE BANK'S WORLD I FEBRUARY 1988 11 The World Bank and Human Rights Ibrahim F. I. Shibata Ibrahim F. I. Shihata, Vice President and General Counsel, and various other types of Bank Group financing, the end submitted in Jan uary a paper on "The World Bank and beneficiaries are the individuals who should reap the benefits Human R ights- An Analysis of the Legal Iss ues and the of the development-brought about by Bank-financed proj­ Record of Ach ievements" to the In ternational Third World ects. The magnitude of Bank Group assistance is reflected in Legal Studies Association Panel on the World Bank, Devel­ the fact that its three lending institutions have, so far, pro­ opment Projects and Human Rights: The Obligations of the vided $200 billion in financing for development. Bank. Here are excerpts from this paper, detailing the In the 1950s an d 1960s it was assumed that if economic Bank's record of achievements: growth could be accelerated, poverty itself would be re­ duced . When it became clear in the 1960s that this was not he last fo ur decades have witnessed an impressive at­ T tempt on the part of the international community to bring human rights within the ambit of international law. necessarily the case, "expanding employment and raising the productivity of the poor" were added to the development agenda. We all know the pioneering and epoch-making role of the United Nations in the development and protection of human Em phasis to poverty alleviation rights. Other international institutions and forums, such as The Bank set for itself the goal to raise the poorest groups the International Labour Organisation and UN ESCO, also within its borrowing member countries above the poverty have made significant contributions. But international orga­ line. The Bank sought to achieve this in a number of ways. nizations have to act within the limitations of their respective It began to give strong emphasis to poverty alleviation in its constitutive instruments. lending program. The Bank Group commitments to low­ The World Bank, while a specialized agency of the United income group countries (with per capita annual incomes Nations, is explicitly prohibited by its Articles of Agreement below $680 in 1979) increased from 37 percent of the total from interfering in the political affairs of its members. program before 1968 to 58 percent in the 1979-83 lending While there are limits on the extent to which the World program. From 1979 through 1986 and in terms of 1984 Bank may become involved with human rights, especially dollars, the low- income group countries with per capita those of a civil and political nature, the Bank certainly can income below $790 received 54 percent of the Bank Group play, and has played, within the limits of its mandate, a very lending. The countries with per capita GNP of up to $400 significant role in promoting various economic and social received 93 percent of IDA lending in FY86. rights. Another way in which the Bank tackled poverty alleviation The right to development is one human right which the was by increasing its lending in sectors and subsectors which World Bank has in fact been promoting throughout its histo­ provided the most direct benefit to the poor. Thus, it de­ ry. In agriculture, irrigation, rural development, industry signed the rural development projects and emphasized pri­ 12 THE BANK 'S WORLD I FEBRUARY 1988 mary education, health, nutrition, small-scale industry, wa­ ized because the enjoyment of a number of basic rights ter supply and waste management, and urban development cannot, in many p arts of the world, be divorced from eradi­ in its operations. This poverty oriented sectoral emphasis cation of poverty. How to bring this about has become the increased from 5 percent in 1968 to 30 percent in FY86 . predominant preoccupation today. The Bank has considered agriculture and rural develop­ ment as central to poverty alleviation. Its lending to this Improvem en t in the quality of education sector reached more than $ 13 billion in FY70-8 1. Not only Eradication of illiteracy is another top agenda item. The were the poorest countries the beneficiaries of such rise, Bank Group's involvement in education during 1962 to 1979 there was greater emphasis on crops "most likely to be has resulted in the financing of 192 education projects in 81 grown or eaten by the poor. I I countries. Nearly all sub-sectors of education are covered by The Bank also engaged in the m ore difficult task of tack­ Bank projects. Between 1963 and 1986, the Bank Group ling urban poverty. Over the last three decades the U!'ban financed 284 projects costing more than $12 .1 billion for population of developing countries has increased at the rate education. This assistance has helped to create more than 2.6 of about 5 percent per annum- nearly twice the rate of the million new student trainee places in approximately 2 1,000 overall population growth ofthese countries. Mexico City, educational institutions, which include 185 universities, 651 Shanghai and Cairo are now estimated to have a population teacher training colleges, 2,903 secondary schools and in excess of 12 million each. A Bank paper of 1972 noted the 18,000 primary schools. A Bank study of 1983 noted that growing shortages of shelter, sanitation and drinking water about 5 percent of Bank lending was for education , and, that affordable by the large poor population of developing coun­ in order to provide the poor with skills to improve produc­ tries. Under Bank Group lending, the upgrading of existing tivity, the Bank increased the proportion oflending for slums and squatter settlements and the provision of serviced primary education to 33 percent of its total lending for sites for low-income housing have directly benefited more education, compared with 8 percent in 1969. The Bank is than two million households through about 50 projects . In also emphasizing the need for improvement in the quality of addition, all the urban-located water and sewerage lending education. of the Bank has involved direct benefits to the urban poor. As in the case of poverty, the magnitude of the problem of illiteracy is also staggering. Though some economists postu­ In spite ofthe increase in life late that a 40 percent literacy rate is the threshold level for a developing country's economic takeoff, only half the devel­ expectancy in the developing oping countries h ave attained a literacy rate of more than 40 percent. in the last three decades, countries , Another human right is the right to health, and , after several years of informal activity, the Bank adopted a formal e level reo health policy in 1974. However, the Bank Group's health For some time, it h as been clear to the Bank that, for operations were limited to components of project.s in other growth, som e countries have to make meaningful structural sectors. From 1975 through June 1978, 44 countries re­ changes in their respective economic policies. How the ceived technical and financial assistance through health com­ policy-based lending of the Bank is likely to affect. the poor ponents of projects in a variety of sectors at a total cost of is an issue which the Bank is studying in each case with $405 million . The Bank also published a number of studies increasing care. All of the seven structural adjustment oper­ and established working arrangements with the World ations of FY86, and 13 out of 17 sector adjustment opera­ Health Organization and with other major bilateral donor tions of the same period, include estimates of the effect of agencies. adjustment policies on the poor. These operations are de­ In spite of the increase in life expectancy in the developing signed in such a way as to reduce the adverse effects on the countries in the last three decades, the level remains low poor as far as possible. The rem aining four sector adjustment compared to the developed countries. Thus, while for the operations focused primarily on efficient restructuring, and latter it is about 70 years, for Africa it is about 47 years, for no estimate of their poverty orientation was possible. South Asia about 49, and for Latin America about 61 years. Alleviation of pove11y remains at the top of the Bank's The low level of life expectancy is attributable to the high rate development agenda. The Bank intends to work closely with of infant mortality. the governments of its borrowing members on finding new and effective ways of involving NGOs, both international and One physician for 70,000 people local, as well as the private sector in the poverty eradication Health care facilities are also abysmally poor in developing efforts. The relevance of these efforts cannot be overemphas­ countries. For example, there is one physician for every THE BANK'S WORLD I FEBRUARY 1988 13 70,000 people in Ethiopia, or 55,000 for Niger. There is one processing. The Agricultural Extension Project in Togo will hospital bed for nearly 6,600 people in Nepal and Afghanis­ study the role and contribution of women in agriculture and tan. For the sake of comparison, it may be noted that in West rural development. The Bank has been working to develop Germany there is one hospital bed for 20 people , and one practical ways of reaching women farmers in other countries physician for 520 people. In countries such as the United too. States, the public and private health expenditures as a per­ The development ofwomen's access to credit and of centage of GDP amount to approximately 6.3 percent; in the entrepreneurship among them are also a major focus of the mid-1970s in the Philippines they added up to only about 1.9 Bank. In the case of Bangladesh, consideration has been percent. Government expenditures on health in low-income given to the training of women, strengthening research­ countries seldom exceed 2 percent of GNP. extension services for rural women's cooperatives, support­ The problem of health cannot be disassociated from ade­ ing rural women's group participation in small business quate nutrition and other "basic needs," such as safe drink­ ventures, development of experimental projects for promot­ ing water. The most widespread diseases in developing coun­ ing women's cooperatives, for savings mobilization and tries, such as intestinal parasitic and infectious diarrh eal group loans for small businesses, establishing a banking diseases, as well as poliomyelitis, typhoid and cholera, facility offering daily and weekly loans along the lines of the spread easily in areas without community water supply People s Bank in Sri Lanka, and the promotion of female I systems. There are still some countries where the safe water education opportunities. supply has not reached even 5 percent of the population. Improving enrollment ratios for girls For the past fe w years the Bank has started financing separate health projects and is placing more emphasis on Education of women poses a special problem. The female prim ary health care and preventive measures. Although literacy rate in Bangladesh, at about 13 percent, is around multisectoral nutrition projects have proved h ard to admin­ half that of males. In Papua New Guinea, enrollment of girls ister, Bank projects and policy work, notably in Brazil, has lagged behind that of boys at a rate of about 2: 3, girls Colombia and Indonesia, have raised the priority of nutrition being nonnally kept at home to care for younger children in the national policies. and other tasks. Bank projects, such as a recent one in Papua The goal of universal access to basic health services by the New Guinea, aim at improving the enrollment ratios for girls. year 2000, accepted by most governments, will require a At times, the Bank has specified that a certain percentage major effort. The Bank is endeavoring to deliver its share. of beneficiaries of the projects it finances must be women. Between fiscal years 1970 and 1979, the Bank Group lent Special emphasis is also being placed on the monitoring and about $340 million in the areas of population, health and evaluation of the impact of projects on women. Ii nutrition under 21 projects. Up to the end of FY87 , the Bank Group will have lent an additional $1.2 billion under another The Bank has also recently sponsored the Safe Mother­ hood initiative. The Safe Motherhood study carried out by I 45 projects. the Bank firmly holds that most maternal mortality can be prevented by a " system" approach to health care in conjunc­ Practical ways of reaching women fanners tion with broader development measures to improve the From about the beginning of this century, women's rights health status, education and incomes of women. have been a concern of international conventions and con­ Another human problem which falls within the activities ferences. Women are disadvantaged by tradition in a great relating to human rights is that of refugees. In 1985 the total many societies. The discriminatory treatment not only finds number of refugees was estimated at 10,069,700. Of this sanction often in custom or religious tenets but also in number, more than 9 million have sought asylum from 13 legislative enactments. developing countries. In recent years, the Bank has been fairly active in devel­ As an example of the Bank 's role in alleviating the prob­ oping programs and projects for women. The challenges to lems of refugees, the Bank assisted Pakistan to pr ovide work the Bank in this area are formidable . Studies on women's opportunities to the refugees and the local population under roles are few. a project identified in 1982. The Bank Group's approach to women in development is . The close relationship among environment, human rights still in the formative phase. A recent example is the Agricul­ and development has been wen recognized in the Bank and tural Development Project in lmo State of Nigeria where the elsewhere. Without a safe environment- safe water and Bank is promoting a " package" which involves cassava, late air- the very existence of life as we know it on this planet maize and cowpeas which are overwhelmingly " women's would be in danger. The development process must therefore crops, " and efforts are under way for a "dramatic increase" be carried out in a manner that is not harmful to the in extension contact with female farmers. environment, but blends with it and allows for its natural The Second Borgou Rural Development Project in Benin evolution and enrichment. also includes assistance to women's groups for foodcrop and As far as the Bank is concerned, it recognizes that "any 14 THE BANK'S WORLD I FEBRUARY 1988 new development project or expansion of an existing facility The Bank adopted policies on involuntary resettlement in poses the threat of environmental degradation and adverse 1980 and on tribal peoples in 1982 aimed at mitigating the effects on public health," and, therefore, Bank staff have hardship arising from projects which give rise to resettlement been under instruction to take into account the ecological issues. The Bank's policy is to help the borrowing govern­ consequences of Bank-financed projects. Guidelines were ment ensure that the displaced people regain at least their prepared for the staff in 1970 for use in the formuiation, previous standard ofliving. It requires that planning and appraisal and execution of the projects. These guidelines, the financing the resettlement should be an integral part of the first to be adopted by an international development agency, project. Bank staff should agree with the government on a were later expanded into a 1972 booklet/ "Environmental, resettlement plan which is consistent with the Bank's guide­ Health, and Human Ecological Consideration in Economic lines. Bank supervision missions pay careful attention to the Projects," which was made available to economic develop­ implementation of the resettlement plans. ment agencies, governments, universities and other public Since the adoption of its resettlement policy, the Bank and private institutions. Group has financed nearly 50 projects that involve involun­ The Bank established the post of an Environmental Advis­ tary resettlement. er in 1970. Under its new organization , it recently established an Environment Department. The Bank 's regional depart­ Civil rights ments are also equipped with environment advisers who assess the environmental impact of each project and monitor As regards the issue of tribal peoples, the Bank 's policy each project's progress to determine the accuracy of Bank requires it to finance such projects only when adequate forecasts of the environmental impact. safeguards are provided. By joining hands with developing countries and other Environmental problems identified international agencies in the alleviation of poverty. in com­ A Bank study r eviewing a total of J ,342 loans and credits bating disease, malnutrition, illiteracy and in fighting for the for the period July 1, 1971 to June 30 1978 shows that (1) I preservation of the environment, in seeking an enhanced role in 845 of such loans or credits, 63 percent revealed no for women in development and by beit'1g a partner with these apparent or potential environmental problem; (2) in 22 countries in the gigantic task of economic development, the cases, representing 1.6 percent of all loans and credits, some Bank is not only promoting economic and social human other agency, such as UNDP or WHO I had already taken rights but is no doubt playing a catalytic role in creating appropriate action in respect ofneeded safeguards; (3) TIl 365 conditions in which all basic rights can develop and flourish . projects (or 27 percent of the total) the environmental prob­ Though the Bank is prohibited from being influenced by lems identified were dealt with by Bank staff; and (4) 110 political considerations, its staff increasingly realize that projects had problems apparently sufficiently serious to re­ h uman needs are not limited to the material basic needs" II quire special studies by consultants and incorporation of often emphasized in the 1970s. safeguard measures as a condition of lending. Civil rights are also basic to human development and An interrelated problem with environmental issues and happiness. No balanced development can be achieved, in my human rights is the involuntary resettlement of people that view I without the realization of a minimum degree of all some development projects entail. Recently a good deal of human rights. material or otherwise, in an environment that public attention has been accorded this particu1ar aspect of allows each people to preserve their culture while contin­ some Bank-financed projects. uously improving their living standards. This suggests that the Bank should be concerned with the Emotional and cultural loss broad effect of its loans on the welfare of the beneficiary Resettlement raises a host of sensitive issues. The right of individuals. Human rights violations in specific cases also a state to exploit its natural resources and its right to take have broader implications related to the country 's stability private property for public purpose are universally recog­ and prospective creditworthiness or to its ability to carry out nized. Initially, it was understood that the doctrine of "emi­ Bank-financed projects, or to the Bank's ability to supervise nent domain" as developed and applied within a state could them, which obviously are factors that the Bank must take take care ofthe problem of the involuntary resettlement. But into account to the extent they prove relevant in the circum­ compensation may be limited to the owners of land and, stances of a specific case. regardless of its amount, cannot fully compensate for the The Bank's record in meeting the requirements of eco­ emotional and cu1turalloss which occurs when people are nomic and social entitlements of the populations of its devel­ cut off from their traditional habitat. Nowhere is this more oping member countries is impressive. Its increasing efforts acute than in the case of economically and socially depressed to protect the poor fro m the adverse effects of adjustment indigenous classes or the tribals in whose case there is the policies should gain greater importance in the years to danger of the extinction of their entire lifestyle. come. II THE B AN K·S WORLD I FEBRU ARY 1988 15 e StaffAssociation Plans Agenda is. There's often a time lag between the SA doing something and the member­ ship hearing about it. In terms of being more proactive, I think there is a great deal of sentiment in the institution and within the SA to A Conversation be much more proactive. And then the question is: How? There are a lot of things we know that need to be done, with the Chainnan but in some cases we need information from management first. The SA can, and does, accomplish a great deal on an informal basis at the working level, Ann Hammond was elected Chairman minute and saying, "Oh, Ann, we need but oftentimes we don't take credit for of the Staff Association in December. a delegate to the SA, can we put your what we've perhaps been able to influ­ The Bank's World had a conversation name down?" That was about 1981. I ence. with her soon after she assumed her was a delegate for a couple of years, Q: What's your agenda? Or is it too new office. Here are excerpts: then on the Executive Committee for a soon to be asking? year. Since then I've had a variety of A: It's not too soon to be asking; it's ammond: First let me thank you roles. I worked in a couple of other too soon for me to have a firm answer. H for offering us this opportunity to be in Bank's World. working groups-Rules and Job Grad­ ing, and then I became a Polling Offi­ Right now we're preparing our work program, and we're aiming to have Q: The Staff Association (SA) will have cer for the last year-and-a-half. I also that on everybody's desk by the end of a regular monthly column in the maga­ worked on SABRE (the Staff Associa­ January. The tough thing is going to be zine, providing it with an opportunity tion's task force on Bank-wide reorga­ choosing and prioritizing among all to really get its message across. nization). So I've been actively in­ the issues we are facing. Basically, our Perhaps at this point people would volved in a variety of ways for the SA starting point is: What is the institution like to know a bit about you-your since about 1981. facing? What kind of institution do we personal background, what you've Q: Many people feel that last year the want? What kind of institution are we done at the Bank, your involvement in SA was more of a reactive organiza­ trying to be? And what kind of institu­ the SA. How long have you been in the tion-it couldn't be much else under Bank? the circumstances. Do you see it that A: Well, I'm originally from Upstate way? New York-not too far from Roches­ A: I think there are two issues here. ter, actually. I joined the Bank in Octo­ Specifically, with respect to the reorga­ ber 1974 and worked six years in Op­ nization, it seems there's a diversity of erations, then moved into Personnel in views. A lot of people I've talked with September of 1980 where I managed are very pleased with how the SA dealt the Bank's external training programs with the reorganization. Others believe for 5-1/2 years. Next I got involved in the SA should have been much more a special PA complex project to help outspoken and much earlier on. I think support Regions' efforts to make their the message is that 6,500 people have staff in the field more effective. And 6,500 different points of view. It's not then, as a result of reorganization, I possible for the SA to fulfill everybody's was selected to be Field Benefits Offi­ expectations all the time. In any major cer in PEREP. management initiative like that, the Q: SO probably your work in Per­ role of the SA is always a difficult sonnel has, to a large extent, prepared one to work out.· you for being Chairman of the SA? Speaking more generally, A: I think my SA involvement has ac­ the SA at times is in a reactive tually been more important.]t began situation because we need around 1979, when I worked in the certain information from Health Issues Working Group for a lit­ management before we can tle while. Then I was elected delegate­ proceed. Even so, the SA as many people are-by someone in oftentimes may appear Personnel coming to me at the last more reactive than it really 16 THE BANK'S WORLD I FEBRUARY 1988 Photo by Jill Roessner tion are we trying to build? It has to do hire an outside consultant. It's the as active as we might have been in with our public image. It has to do with same type of "makelbuy" issue, if you trying to regain these members. Now how we treat our staff. It has to do with will. last year we did become more targeted the bond between the staff and the At another level, there are interper­ in this area and that will definitely con­ institution which many people feel has sonal issues that have to be worked tinue this year. It's important that staff been a bond of trust which has been out. People who have worked together support their Association, even-when broken because of how many staff for years are suddenly no longer work­ they don't always agree with what the were treated during the reorganiza­ ing together. They have to establish Association does on particular issues. tion. Many staff believe that their situ­ new relationships and build a sense of Q: Did you lose more last year during ation is being chipped away at, unfairly teamwork. And in that sense, coming the reorganization? eroded, in any number of areas. Within together again after a period of great A: No, we didn't. In fact we got a lot that context I think it's safe to say there trauma, not just at an institutional level of new members, people who were are probably three major areas which but at a personal level as well. That has coming to the SA for help with individ­ we will be active in. to be sorted out. There are functional ual problems, then joined. One is reorganization. As Mr. Con­ issues as well in the sense of many It's important for the SA to do a able noted in the last issue of The people being put in new jobs where much better job of communicating Bank's World, reorganization is not yet they have little background and have what it does, and communicating over. People have been moved into new had no time to be trained. Many people honestly and openly with staff. People jobs and we have a whole slew of issues in Operations have to develop relation­ have to feel that they are being served coming from that-and at very differ­ ships with government counterparts, by the SA, and so we have to do a ent levels. At one level we have units and all that takes time to sort out. So better job of letting them know what for which major staffing decisions have reorganization is still very much with we are doing to serve them, plus make yet to be made, for example in GSD us and will be for quite some time. sure that we are doing a better job. and EXT. There are similar issues in Two other key areas which may be Q: To what extent does the Bank really Operations as well, particularly with thought of more as traditional "bread­ support the idea of a SA? respect to the relationships among the and-butter" issues that the SA is in­ A: By and large over the years man­ Technical Departments and the Operat­ volved in, but I think in this time and agement has seemed quite supportive ing Departments and PPR. They too in this climate take ona different tenor, of the SA. They seem to have felt that are facing decisions about whether to are compensation and benefits, specif­ it's an important part of the institution. contract in-house with somebody or to ically the Staff Retirement Plan. Given It does provide a vehicle for staff to that the Bank's facing unprecedented speak directly to management if you financial and operational challenges, will-staff representatives to speak di­ that many staff feel vulnerable, and rectly to higher level management. that the institution is having increasing And, on very many occasions they say difficulty recruiting people from out­ they have found the input of the SA side, even within the local market, substantively to be of considerable val­ these areas take on even greater signif­ ue. I hope that will continue. It is diffi­ icance. We have to ensure that this cult, of course, at times, because the institution can attract and keep the SA and management certainly don't The SA cares just as highest caliber of staff possible, to do always agree. At those times, I think the best work possible for our share­ both sides try very hard to keep com­ strongly as holders. mon goals in sight and work to resolve Q: Are you getting support from staff differences. After all, the SA cares just management does working in these areas? Do you have as strongly as management does about good working groups? the well-being and effectiveness of this about the well-being A: We have right now some 12 active institution. It'sjust that we don't al­ working groups and we've already ways agree on the means to the end. and effectiveness of identified at least three more that need Q: How would you summarize the to be established. events of the past year or so, and what this institution., Q: How many staff belong to the SA? do you think Bank staff are looking for A: The majority do. It comes back to now? Is there any way to restore the Ann Hammond the issue we talked about earlier: what esprit de corps, for lack of a better do staff expect from the SA? Some staff term? have resigned their membership over A: I think people want to be proud of particular issues over the past few the Bank. I think people here want to years, and we have perhaps not been be proud of what they're doing, the THE BANK'S WORLD { FEBRUARY 1988 17 -We" within the institution they're working for. We institution, at reorganization has been successful. want t9 be fully engaged in the sub­ But at what cost? There are a lot of stance of our work. We are here be­ whatever level, will do criteria by which staff feel the reorga­ · t' cause we are committed to the cause of our best to do what nization has not been a success. development, we want to work hard to Q: What message do you want to do that, and we want to make, each of we're supposed to do send? us, what we feel is a meaningful contri­ bution to the cause of the Bank, to the for yourgood. But we A: In summary, I would like to convey several things to people. First to staff: cause of development. need your help as wen. somebody here cares about you and This past year, in a very short period cares very much, but the SA can only of time for many of us, our basic hu­ We need you to do do as much as we have people willing man needs-our basic security, our physical security, our home, shelter, what you can to help to volunteer to do. We cannot do it all. We have to continue to help each other. family were threatened, and that make this an The message that I think I'd like to brought out a survival instinct. Each of send to staff and management is that us had to decide how important is ajob institution which can we care about the institution. We rec­ to me. Some people were faced with the fact that "I must have ajob at all attract and keep the ognize that without this institution being healthy and productive, the staff costs and therefore I'll do what I need best qualified staff. .. cannot be healthy and productive. And to do to survive in this organization." we want to work with management as And they still feel that fear because investment and to feel a commitment much as possible to find ways to make they're not sure what's going to hap­ to this institution-to do their best­ this institution a better place and to pen to them a year from now, or two then there has to be a degree of reci­ help staff. But at th~ same time, staff years. It's very difficult to recover from procity. Staff need messages: First, we look to management to exercise leader­ an experience like that. And it's very value you. Second, we are prepared to ship and to look out for its staff. We likely to influence the quality of the make an investment in you. won't shirk our responsibility to point work that we do, the risks that people In many cases staff view their own out when and how we believe things are prepared to take. Many people are units as seriously understaffed and un­ can be done better. And we would hope now scared to speak up because derfunded, with even more work to be that this could be done in a very colle­ they're afraid that they're going to lose done. It leaves questions in many peo­ gial relationship. their jobs. There is a basic insecurity ple's minds: What was this reorganiza­ But also a message to the sharehold­ that has been created in this institution tion all about? Is it really fulfilling its ers, to the members. We, within the that one cannot just wash one's hands objective of helping us to be more effi­ institution, at whatever level, will do of and say it's now over. cient and more effective? Where is the our best to do what we're supposed to In this context, the decentralization analysis for how we got into such a do for your good. But, we need your of Personnel teams causes many peo­ situation that required such dramatic help as well. We need you to do what ple deep concern. Staff see their per­ steps, and where's the strategy to make you can to help make this an institution sonnel officers now reporting to the sure we don't get into such a bind in which can attract and keep the best same managers they may be having the future? Where is the strategy for qualified staff because only if you do problems with. It'sjust not clear how making sure that managers do a better that can we do our best for you. It isn't management is going to put in place job in the future of giving feedback to easy; in some cases, that means setting safeguards to ensure staff do have a fair those staff who aren't performing? aside national concerns for the good of hearing and equitable treatment. And Where is the strategy for avoiding skills the institution. Many multilateral insti­ how are we going to ensure consisten­ obsolescence in the future? tutions-not just the Bank-are in cy across the Bank? Q: SO these are the questions you'll be trouble and are going through things I'm sure some people think issues of addressing this next year. that are not unlike what the Bank is trust between staff and management A: It's time we started articulating going through. Many of them look to aren't all tha.t important. But they are. some very tough questions that are on the Bank because the Bank has been The quality of our product has to be people's minds. We've all learned a lot successful in the past. If the Bank fal­ linked to the security and confidence from this reorganiiation. Let's look ters, as many now feel that the Bank people feel in being able to speak up. honestly at what we're left with now has faltered, if we do not pull out of What we're ultimately dealing with and start planning on how we're going this, if we do not survive and get on top here is people. We are not dealing with to avoid having this happen again. I of this, then it may send a message boxes on an organizational chart. It is honestly think management would not that the multilateral approach doesn't the people that make this institution. like to see us go through something like work. Is that the message you want to And if we want people to make an this again. By some criteria, certainly, ~~? • 18 THE BANK'S WORLD I FEBRUARY 1988 AManuaI Around the Bank for China 'Wish Elephants' about the situation of those less fortun­ ate than ourselves. There are, he points out, things in life that money cannot buy. Happiness. Sunshine. Kindness. A smile. Perhaps the wish elephants will give us some of by Alan Drattell these and we, in turn, will give in kind to others. "In the Bank, the glory is in the project-in the implementa­ As of January 20,40 percent of staff have contributed $213,615 to the and the United Way Campaign. The anony­ tion," says Alan Mole, Adviser to the mous donor hopes his contribution Director of the Loan and Trust Funds United Way Campaign made some difference. And if you did Department (LOA). "But, certain kinds not get your wish elephants or urgently of technical assistance the Bank can need some more, your wish can come give our borrowers-such as helping In all countries and all cultures there true. Contact The Bank's World's of­ them develop their own accounting are different sorts of wish forms that fice and we'll try to help you. II systems-are often overlooked. So, we now and again most of us surreptitious­ are pleased when our borrowing coun­ ly practice. We toss coins into wells, tries take the initiative. It's a very pos­ silently whisper a wish when passing itive signal." under a bridge or when seeing a falling Snow-Line Snowed Under The Chinese did just that. Three peo­ star. ple are now in the third and final phase Well, 85,000 ivory "wish elephants," The announcement was propitious. of a project, initiated by EDIIUnited packed in 6,500 tiny red seeds, were Just hours before a major snowstorm Nations Development Programme recently distributed to each staff mem­ crippled the Washington, D.C., area (UNDP) China Unit and supported by ber in the Bank. The fable that accom­ January 8, the Bank issued an admin­ LOA, to produce a manual called, "Ac­ panies the seed says that each of the 12 istrative memo to all staff detailing counting for the World Bank Loans and little elephants within contains a wish, leave procedures in the event of snow. Credits." attainable by throwing one elephant' The announcement also included a spe­ "The manual," says Nancy Hwang, over your shoulder. Save the stopper­ cial telephone" snow-line" for staff in­ Senior Disbursement Officer in LOA, the "big" elephant-for a day when quiries. "will be used as a training tool by the you're really in need of a special wish. The special "snow-line" was an im­ Chinese in seminars to be conducted Where did all these little seeds come mediate success. In the wee hours of for the implementing agencies for from? And why? January 8 (3:45 to 6 a.m.), a total of Bank-financed projects. The manual The donor, who wishes to remain 1,246 people called in. The recorded will prove of great assistance in China, anonymous, said he wanted to give the answer they received was that a "deci­ which presently has 54 IBRD and IDA United Way campaign an extra push. sion was pending" regarding leave. projects ongoing. And he wanted to give his friends and From 6 a.m. to 11 :20 a.m., 2,500 call­ "The training was divided into three colleagues a little reminder, a nudge, in ers learned from the recording that the phases," says Mrs. Hwang. The first the right direction. Bank was officially closed. Another 166 was conducted in China where the de­ "I used my wish elephants to make callers-probably those who wanted to legates familiarized themselves with just one large wish-that we could put confirm that when the U.S. Govern­ World Bank manuals, regulations, aside any bad memories of 1987, look ment closes down the Bank/IFC fol­ guidelines and financial statements. forward to the new year and remember low suit-used the "snow-line" be­ They also prepared a draft outline of just how much more privileged we are tween 11 :20 a.m. and 3:30 p.m. the accounting manual. than many in this community or other "Snow-line" can answer up to six Phase II involved the trainees meet­ communities in the world. incoming calls at a time, so some call­ ing various Bank staff in Washington to "It is not only the United Way cam­ ers may have to dial a second time obtain first-hand understanding of how paign that I support. It is the attitude before getting through. the Bank conducts its business and to of sharing that I wished to motivate. " This latest approach to informing meet the Bank's external auditors. He said he wanted to send some­ staff about the effect of snow condi­ The final phase will be completed in thing out, not meant to be a request for tions on their attendance was generally February or early March. II a contribution, but a request to think praised by those who used it. II THE BANK'S WORLD I FEBRUARY 1988 19 Around the Bank continued LAC Seminar Staff of the Technical Department, Latin America and the Caribbean Re­ gional Office, met to discuss poverty December 18. George Psacharopoulos, Human Resources Division Chief, ex­ plained the rationale. tIlt's a very big department-133 positions. All our di­ visions are supposed to be working on poverty-but how? There aren't many opportunities for us all to sit around a table together. " The entire staff from every level in the five divisions (Trade, Finance and Industry; Agriculture; Infrastructure and Energy; Human Resources; and Environment) was invited to the infor­ mal session, the first in a series at which a particular topic will be pre­ sented and discussed. These sessions To air ideas on poverty, five divisions in LAC held an open meeting. Photo by Jill Roessner offer opportunities for the divisions to listen to one another and look at their and also between higher level and sup­ Population, Health and Nutrition Unit roles in a broader context. port staff. Attendance is voluntary to Chief, and Education and Training Unit In keeping with the goals of the ensure that the discussion is lively. Chief Douglas Keare. Afterward the Bank's reorganization, the department Following a brief introduction by De­ participants asked questions, got an­ hopes to be able to increase awareness partment Director Everardo Wessels, swers-sometimes disagreed. Above and improve communications across presentations were made by Mr. Psa­ all, they communicated-and that was traditional lines-between divisions charopoulos, Bill McGreevey, LAT's the whole idea. III World Debt Tables Released Peperzak Named Mr. Peperzak joined the Bank in The World Debt Tables 1987-88, re­ Fellow of ASA 1971 and has been with the Corpora­ tion's Engineering Department since leased by the Bank in mid-January, Paul Peperzak, Senior Engineer with report that the decline in new lending 1979. 1\1 the International Finance Corporation, appeared to bottom out in 1986 and was selected a Fellow of the American achieved a small rebound in 1987. Both Society of Agronomy (ASA) at the So­ official and private lending rose slightly ciety's annual meeting in Atlanta. ASA last year, but for private creditors, the is the most important agricultural pro­ Gifts increase was entirely associated with fessional society in the United States, The World Bank/IFC Community Re­ new money packages for Argentina representing agronomists active in lations Office offers its thanks to all and Mexico, and with refinancing un­ teaching, research, and technical assis­ staff who contributed generously to dertaken by the Republic of Korea. tance. The Society has 12,000 mem­ the holiday gift collection in Decem­ Aside from these transactions, there bers. ber. The number of gifts contributed was no indication of a revival of private After an initial career in applied re­ came to a total of 1,700. Four-hundred lending to the developing countries. search with various public and private gifts were given to Children's Hospital, Net lending flows of $26 billion were enterprises, Mr.·Peperzak has devoted 400 to Catholic Charities, 300 to Com­ also slightly higher in 1987 than in the last 25 years to agricultural devel­ munity Connections and 600 went to 1986, but negative transfers were still opment in Third World countries. Ei­ St. Elizabeths Hospital. on the order of $29 billion. ther as a private consultant, or em­ In many cases, these were the only The total external debt of developing ployed by the FAO or World Bank, his gifts received by the patients and other countries is estimated to have stood at efforts led directly to the implementa­ needy people. III $1,190 billion at the end of 1987, and tion of many government or privately is projected to reach $1,245 billion in sponsored projects in the agriculture 1988. III and agro-industrial sectors. 20 THE BANK·S WORLD I FEBRUARY 1988 Bank/Fund Clubs, Groups, Classes, and Who to Contact Amateur Radio Richard Skolnik 75366 Tennis Club Jack Garrity 60776 Art Society Clarisa Ringlien 656-4731 Theatre Group John Todd 3-4561 Bible Study Groups Ernst Lutz (coordinator) 3-1043 Toastmasters Club Elizabeth Shields 78804 IMF!World Bank Duplicate Ann Hammond 69311 Transcendental Meditation Martin Hartigan 60687 Bridge Club World's Word J. P. Correia da Silva 75158 World BanklIMF Charity C. P. Ranganathan 3-2509 Society of Writers J .P. Correia da Silva 75158 Bridge Club World Bank/IMF Bridge c.P. Ranganathan 3-2509 National Groups include: Classes & Games International Camera Club Mila Tuason (IMF) 54632 Africa Club Ida Njeri Muhoho 3-2957 World Bank Chavurah Maria Salazar 3-7584 ANZPAC Ann Kaine 3-1272 Chess Club Tommy Heintschel 3-2168 Gwenda Stout 74564 Choral Society & Orchestra Geoffrey Read 3-2291 Caribbean Association Sidney Thomas 75341 Laura Elliott 74038 Filipino Association Ramon Paterno 60449 Paul McClellan (IMF) 58239 India Club T. N. Sharma 75346 Debating Society Kamlesh Gillespie 73472 Portuguese-Brazilian Club J. P. Correia da Silva 75158 International Cine Club Michael Blackwell (IMF) 57810 Scottish Luncheon Group Helen Toni 69798 IMF Fishing Club John Ehrlich (IMF) 57828 FiyingClub Jose Soncini 3-2428 Computer User Groups are listed from time to time in the Weekly IMF Knitting Club Twain Revell 3-2803 Bulletin in the "Information Technology" section. Music Club KarlJahr 3-2140 SkiClub Keiji Ikezaki 72410 Exercises, etc. Information about different exercise, dance and Soccer Club Ibrahim Levent 3-3843 martial arts classes (including aerobics, jazzercise, belly dancing, Glenn Morgan 3-3455 Shorinji Kempo, Chi Kung and yoga) are described in the brochure, Co-ed Softball Michael Reamy 3-4328 Exercise Schedule and Description of Exercise Classes, available Stamp Club Eric McMillan 60276 from the exercise rooms and the Medical Department. Senior Staff Appointments H. JAMES DYCK was appointed Chief Per­ to Senior Loan Officer. Upon his return to Headquarters in 1983, he sonnel Officer, Office of the Senior Vice was appointed Senior Planning Officer, Institutional Planning Divi­ President, Operations, effective December sion, Planning and Budgeting Department, and, in 1986, became the 15. Mr. Dyck, a Canadian, joined the Per­ division's Acting Chief. sonnel Department in 1966 and served as Administrator, Young Professionals Pro­ gram, from 1968 to 1970. He undertook a BAHADURALI JETHA was appointed number of managerial assignments within IFC's Resident Representative to the newly Personnel until 1977 when he was appoint­ established mission in Lagos, Nigeria, effec­ ed Program Coordinator, Western Africa tive in January. Mr. Jetha, a U.K. national, Regional Office. He returned to the Personnel Management Depart­ joined the Bank in 1974. His first assign­ ment as Division Chief in 1980, and was appointed Assistant Direc­ ment with the Bank was on secondment, tor in 1982. Since June 1987, he had been Chief Personnel Officer, initially as Director of Investments and then Europe, Middle East and North Mrica Regional Office. as Deputy Director General ofSOFISEDIT, Senegal. In 1978 hejoined the Western Africa Projects Department, Industrial De­ NAGY HANNA, aU .S. national, was ap­ velopment and Finance Division, as Operations Officer, and, in pointed Chief Staff Officer, Policy and Stra­ 1983, was promoted to Senior Operations Officer. Mr. Jetha trans­ tegy, Information, Technology and Facili­ ferred to the Corporation, Department ofInvestments, Africa II, as ties Department, effective July 1, 1987. Mr. Senior Investment Officer, in 1986. Hanna came to the Bank in 1975 through the Young Professionals Program. In 1976 he joined the East Asia and Pacific Country Program Department as a Loan Officer, and subsequently, the Resident Mission, In­ donesia, in 1979, where he was promoted THE BANK'S WORLD I FEBRUARY 1988 21 Senior Staff Appointments continued EMMITTS. SUMMERS, a Philippine na­ tiona!, was appointed Chief, Services and GOPI NATH PURl was appointed Technical Systems Support Division, Cashier's De­ Manager, Division I, Engineering Depart­ partment, effective December 1. Mr. Sum­ ment, IFC, effective December 31. Mr. mers joined the Bank in 1972 as a Software Puri, an Indian national, joined the Bank's Specialist, Software Systems Division, Economic Development Institute as a lec­ Computing Activities Department. In 1981 turer in 1975. In 1977, he transferred to the he transferred to the Management Systems Corporation's Engineering Department Division as a Programming and Budgeting where he was promoted to Senior Engineer Officer and, in 1984, to the Institutional and in 1980 and to Principal Engineer in 1986. Financial Systems Unit, both in the Programming and Budgeting Department. During the reorganization, Mr. Summers was appoint­ PILAR J. SAN JOSE was appointed Pro­ ed Management Information Specialist, Office of Systems and Budg­ gram Coordinator, General Services De­ et, Office of the Senior Vice President, Finance. partment, effective January 1. Mrs. San Jose, a Philippine national, joined the Bank as a Programming and Budgeting Officer in Retirees 1978. She was promoted to Senior Pro­ gramming Officer in 1980, and, in 1982, to ROBERT SKILLINGS, Adviser to the Direc­ Deputy Chief, Programming and Budgeting tor, Country Department I, Africa Region, Division, Planning and Budgeting Depart­ retired December 31 after a record 40 years ment. In 1984 she was promoted to Chief, in the Bank. Mr. Skillings joined the Bank Budget Control and Systems Division, Accounting Department, and, as an Economist and served in various ca­ in 1987, to Manager, Accounting Division, Controller's. pacities, including four years in Paris as Economic Assistant to the Bank's Special Representative in Eumpe. Mr. Skillings, a New Staff Members U.S. national, plans to rest a few weeks before taking up two consultancy assign­ ments for the Bank in Africa. Later, he and his wife plan to spend Brigitte Aflalo Peter M. Fozzard the colder months in Washington and go to Maine during the Morocco United Kingdom Secretary/ AFs/ l/ll Senior Geologistl AFT/ 12128 summer. Bertrand L.S. Ah-Sue Yolanda Gedse Mauritius Philippines Sanitary Engr./AFT/ l/ 14 Secretary/ EM4/ l/19 Steven Ball Richard L. Ground Ali M. Mansoor Mirtha Pokorny United States United States Mauritius Argentina Mgt. Info. Specialist/ OPN/ 12/ 22 Economist/LA3! l/ 19 EconomistiAFT/ l/4 Transport Econ ./LA2/ 12/ 18 AnuBatra AzziHailu Kimmo J. Mettala Sreenivasa Ramachandran India Ethiopia Finland India Secretary/ AS 1/ 1/ 4 Office Tech. Spec./LOA/l/ls Counsel/LEG/ 1/ 15 Economist/LAT/ 12/18 John Briscoe Kristin Hallberg Maria Mogol Maureen Rickford United States United States Philippines United States Sr. EconomistiLA l/ l/88 EconomistlLA3! 1/ 15 Secretary/ AS4/ l/19 Secretary/ LOA/ 1/ 19 Mary Jane Bullen Denise G. Hintenneister Marisela Montoliu-Munoz Susana Romero United States United States Venezuela Peru Computing Analyst/ LACVP/ l/ 11 Secretary/ ENV/ 1/ 11 Young ProfessionallYPP/ l/4 Admin. Asst./IFC/l/12 Richard Clifford Nyambura Kamau Juana Najar Robert Schneider United States Kenya United States United States Budget Ofcr./PBD/ l/ 4 Secretary/ OPNMI/l/19 Secretary/ AFT/ 12/ 28 Sr. EconomistiLA l/ l/ 11 Robert A. Climent-Jones Minneh M. Karanja Milagros Nazal Craig Wahl United Kingdom Kenya Philippines United States Country Ofcr./AFs/ l/4 Counsel/LEG/ l/ 15 Secretary/ PEN/ 12/ 28 Research Assistant/FRS/ l/22 Audrey Cox Richard C. Kollodge Peter B. Nicholas Peter Williams United States United States United Kingdom United Kingdom Secretary/ AFT/ l/ 4 Information Asst./EXT/ l/8 EconomistiPPR! 1/ 6 Travel Ofcr./GSD/l/4 HennanDaly Sujata Lamba Linda Osborne Renee Williams United States India United States United States Sr. EconomistiLAT/ l/8 Young Professional/ YPP/ l/4 Secretary/ ASs/ 1/ 4 Secretary/ AS l/ l/ 19 Luc H. De Wulf Barbara Lausche WiJliam L. Partridge Charles Woodruff Belgium United States United States Canada Sr. EconomistlAF1/ 1/ 15 Counsel/LEG/ 1/ 19 Anthropologist/AST/ l/s Financial Analyst/EMT/ l/s Marjorie M. Evans Catherine Mann Librada Penid lvoneYang United States United States Philippines Brazil Word Processor/ GSD/ l/4 EconomistiPPR! 1/ 4 Secretary/ AST/1 / 4 Secretary/ AF4/ l/11 22 THE BANK'S WORLD I FEBRUARY 1988 The Observer by Frank Vogi now. Serene, sublime, soothing. Mr. Fischer was not to be fazed. He establishment, the U.S. Congress. As a S And a source of enormous frustra­ tion as one tries to dig the car out of the stressed that the Bank's role was devel­ opment, first and last. He was diplo­ newspaper reporter, I used to relish that unpredictability. Endless stories drive, handle children suddenly liberat­ matic, and greatly skilled at dodging could be conjured from the humblest ed from school, get to work, resched­ the media's barbs. legislation, as the Hill experts (always ule appointments. A time when a calm, called "informed sources") one day 'Headroom' authoritative voice is welcome. declared a bill dead, the next day an­ Stuck in the suburbs, I couldn't nounced the bill to be as virile as an Donald Roth is a large, cheery, frank make a meeting with Barber Conable. Olympic athlete, and the very day after fellow with a superb sense of timing. I telephoned his office and he instantly that stated that a sudden relapse made No sooner was the Bank's new Vice answered my call: "What's the cry?" the bill's burial imminent. President and Treasurer introduced to he asked with a laugh. I no longer relish the pontifications the Board at its first formal session of Past snowstorms have been worse, of "informed sources," especially 1988, than the Board plunged into a but the Bank's work continued. Like when the bill in question concerns the morning of high finance. The former the time when there was a crucial gath­ World Bank. Congress continues to investment banker was spared a bap­ ering here of IDA Deputies-amazing­ make a cliffhanger out of every World tism of fire by many older Bank hands, ly, it started on time with a full house Bank authorization and appropriation notably Finance SVP Ernest Stern, as of officials. Or when a key meeting of that comes before it. Matters in 1987 the debate rushed from the yen to Mex­ the Steering Committee on Reorgani­ were no different from those in the ico's debt to "headroom." zation had to convene in the worst of past, except that this time around the Ah, "headroom." That new word in weather ... But enough said on that cliffhanger took on all the trappings of the vocabulary of Mr. Roth and many subject. a Wagner opera and seemed destined Bank staff simply (whenever someone to run right through the Christmas fes­ New Vice Presidents says"simply," you know a complicat­ tivities. But final action came, with ed explanation is about to follow) January saw new Vice Presidents join jolly good results. means the difference between the the Bank-Stanley Fischer for Eco­ You'll recall that last spring the tense Bank's statutory limit on lending, as nomics and Donald Roth for Finance IDA 8 negotiations ended with agree­ defined by the Bank's Articles, and the (see below), and both swiftly discov­ ments amounting to some $12.4 billion volume of loans that are disbursed and ered the pressures they are to face. A of funding for three years starting on outstanding. press lunch had long been arranged for July 1, 1987. Under that agreement, The narrower the "headroom," the Jean Baneth to proclaim on the state of the U.S. share was $2.875 billion. It less, therefore, there is for the Bank to the global debt. With Mr. Fischer fully was vital to IDA and the world's disburse before it bumps into its statu­ in the saddle (he had been here for less poorest nations that Congress fully au­ tory limit on lending. The simplest so­ than a week), it was seen as a bonus for thorize this amount, and that is exactly lution to the problem is boosting the all to have him join the gathering. what Congress did. On the appropria­ Bank's capital and this is precisely This he did, and the lions of the Wall tion side, where we were concerned, what is now being done. We are in the Street Journal, Washington Post and the Congress approved $915 million crucial phase of negotiations on a Gen­ New York Times-plus less forthright for IDA, $40.2 million for IBRD, $20.3 eral Capital Increase and from all the scribes from other worthy publica­ million for IFC, and $44.4 million for mutterings to be heard around the tions-spared not a moment to get the MIGA. Bank, it seems there are grounds for VP to comment on the Baker Plan, on These were good results, but no cautious optimism. all the new things the Bank should be sooner does one budget saga come to a doing, on the idea that the Bank should happy end, than another starts. Center be doing more financial engineering Capitol Hill stage for us this year will be congres­ and more of everything else for the And talk of a capital increase takes me sional action on a new General Capital debtors. up to Capitol Hill to that unpredictable Increase. II THE BANK'S WORLD I FEBRUARY 1988 23