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Contents Page President's Letter of Transmittal .......... .................. 2 Financial Highlights ............................ 3 Part One: The Year's Activities ......... ................... 5 Introduction and Summary .......................................... 5 The Year's Lending ........................... 8 Public Services ........................... 8 Agriculture ........................... 11 Education . ........................................... 13 Industry ........................... 15 Technical Assistance ........................ .. 16 Aid Coordination ........................... 18 Indus Basin Development Program ........... ................ 20 Commodity Study ........................... 22 Other Studies .... ........ ....... .......... 22 Finances: Bank .......... 24 Finances: IDA .......... 25 Membership and Administration . ..................................... 27 Part Two: Trends and Outlook in Development Finance ..... ............. 31 Overall Trends ............................................... 31 Growth in Developing Countries . ..................................... 32 Trade and Payments .............................................. 32 External Debt Servicing ............................................. 35 Terms of Public Capital Inflow ........................................ 38 Capital Flows . .............................................. 39 International Capital Markets ........................................ 40 Agricultural Development ........................................... 42 New High-Yielding Varieties ............. 42 The Background ............. 42 New Possibilities ............. 44 The New Varieties' Significance ............. 45 Implications for Bank Group ............. 46 Population Growth Policy ............. 46 Statistical Annex ............. 48 Bank Appendices ............. 67 IDA Appendices ................................... ............. 83 Bank/IDA Appendices ............. 93 International Bank for Reconstruction and Development International Development Association Office of the President September 30, 1968 Dear Mr. Chairman: In accordance with Section 10 of the By-Laws of the International Bank for Reconstruction and Development and Section 2 of the By-Laws of the International Develop- ment Association, I have been authorized by the Executive Directors of the Bank and the Association to submit to the Boards of Governors this Annual Report for the fiscal year July 1, 1967 to June 30, 1968. I have also been authorized by the Executive Directors of the Bank and the Association to submit to the Boards of Governors, in accordance with Section 19 of the By-Laws of the Bank and Section 8 of the By-Laws of the Association, the audited financial statements as of June 30, 1968, and the Administrative Budgets for the fiscal year ending June 30, 1969. They are contained in the Appendices of the Report. Sincerely, Robert S. McNamara Chairman Boards of Governors International Bank for Reconstruction and Development and International Development Association Financial Higlilihts Expressed in millions of United States Dollars Fiscal Year 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 World Bank Loans of the Year $ 703 $ 659 $ 610 $ 882 $ 449 $ 810 $ 1,023 $ 839 $ 877 $ 847 Disbursements 583 544 398 485 620 559 606 668 790 772 -Sales of Parts of Bank Loans 148 243 202 319 273 173 106 82 69 107 Repayments of Loans to Bank 45 74 101 104 113 117 137 166 188 237 Gross Income 122 151 167 188 204 219 267 292 331 356 Net Income 46 59 63 70 83 97 137 144 170 169 Total of Supplemental Reserve 282 341 408 476 558 558 606 664 733 869 Total of Special Reserve 138 165 194 223 255 288 289 290 290 291 Total Reserves 420 506 602 699 813 846 895 954 1,023 1,160 Borrowings (gross)!11 432 374 787 271 121 100 598 288 729 735 Subscribed Capital 9,557 19,308 20,093 20,485 20,730 21,186 21,669 22,426 22,850 22,942 Number of Member Countries 68 68 68 75 85 102 102 103 106 107 IDA Credits of the Year $ - $ - $ 101 $ 134 $ 260 $ 283 $ 309 $ 284 $ 354 $ 107 Disbursements - - - 12 56 124 222 267 342 319 Funds Available for New Credits - - 655 529 283 677 511 322 78 41 Number of Member Countries - - 51 62 76 93 94 96 97 98 Bank Loans Cumulative Totalf2 $4,426 $ 5,068 $ 5,669 $ 6,544 $ 6,983 $ 7,754 $ 8.772 $ 9,584 $10,442 $11,247 Number of Loans 234 265 292 321 349 386 424 461 508 552 Number of Countries 50 53 57 60 64 73 77 79 81(3) 85(3 IDA Credits Cumulative Total(2) $ - $ - $ 101 $ 235 $ 495 $ 778 $ 1,086 $ 1,365 $ 1,694 $ 1,788 Number of Credits - - 4 22 39 57 77 89 109 127 TNumber of Countries - - 4 11 18 22 29 32 38 40 Total Loans and Credits12 $4,426 $ 5,068 $ 5,770 $ 6,779 $ 7,478 $ 8,532 $ 9,858 $10,949 $12,136 $13,035 Number of Loans and Credits 234 265 296 343 388 443 501 550 617 679 Number of Countries 50 53 57 63 68 78 85 88 92'3) 94(3) (X) Including delayed deliveries. (1? Initial commitments net of cancellations, terminations and refundings. t3' Plus line of credit to International Finance Corporation. A convoy of lumber trucks traveling along a new road in Gabon. A $12 million Bank loan has helped to construct vital highways to open up new forest regions to commercial logging operations. Part Oiie: The Year's Activities he economic prospects of a number past year in improving power supplies, increase developing countries' exports, of developing countries1 have im- transportation and other essential infra- promote their industrialization and ac- proved in some important respects dur- structure facilities. Further steps have celerate their economic growth, and ing the past year, notably in regard to been taken by some countries in re- machinery for formulating such a sys- agriculture. As discussed in Part Two spect to the exploitation of available tem was established. The granting of of this Report, the steps taken in recent mineral resources. trade preferences to the developing years to raise agricultural output have The foreign exchange earnings of countries would be a substantial help produced significant results in several developing countries were adversely to the development process. countries. The higher yields of food affected in 1967 by a slowdown in the The flow of official development as- grains achieved in the populous region growth of the world economy. Apart sistance from the developed to devel- of Asia by the use of better seed vari- from this cyclical factor, many coun- oping countries increased in 1967, eties in conjunction with fertilizer and tries in the developing world have con- owing at least in part to disbursements other necessary inputs, and assisted by tinued to be faced with more basic under aid commitments made in earlier good weather, have been particularly difficulties arising from their heavy de- years. The aid programs of several of encouraging. A greater willingness has pendence on the export of a small num- the smaller countries which are donors become evident in the developing coun- ber of primary commodities, prices of of development assistance were ex- tries, on the part of governments and which have been unstable and often panded during the year, but some of the farmers alike, to adopt the measures declining. As this Report is written, the major donors were preoccupied with and techniques necessary to sustain International Bank for Reconstruction their own economic problems and, ac- the improvement in agricultural and Development (World Bank), in as- cording to preliminary information, new production. sociation with the International Mone- commitments of assistance by the de- Several countries have also been tary Fund (IMF), is actively engaged in veloped countries as a whole remained working on the development of more the preparation of a study of the prob- at about the same level as in previous effective family planning programs, rec- lem of the stabilization of prices of years. ognizing a need to reduce the heavy primary products for submission to the To provide the necessary ground- burden on their resources of the con- Boards of Governors, in response to work for a reassessment of their devel- tinuing rapid growth in their popula- resolutions adopted at the 1967 Annual opment efforts by both donors and tions. Despite the improvement in Meetings in Rio de Janeiro. recipients of development assistance, agriculture, the relationship of food Endeavors by developing countries the President of the World Bank Group supplies to population remains a matter to increase their foreign exchange recommended in November 1967 that of grave concern. Current efforts by earnings have again been hampered a "Grand Assize" might be undertaken the developing countries in both these by tariffs and other limitations on im- to assess the results of the last 20 years matters need to be broadened and in- ports in developed countries. At the of development activity, to identify the tensified if the possibility of serious second session of the United Nations accomplishments and errors and to tood shortages is to be removed, and Conference on Trade and Development suggest policies which might be more the way opened for faster economic (UNCTAD), in New Delhi during Febru- effective in future. Discussions which development. ary and March 1968, there was unani- may lead to a study of this kind are The developing countries have con- mous agreement in favor of the early continuing. Any such study would be tinued to make progress during the establishment of a mutually acceptable fully coordinated with the work of the system of generalized, non-reciprocal United Nations on the Second Develop- 'For the classification of countries used in this Report, see Note, page 31. and non-discriminatory preferences to ment Decade. The fiscal year ended June 30, 1968, fiscal year. The strong competing de- The Bank's President has been en- witnessed a contraction from $1,130.3 mands on the world's capital markets gaged in recent months in formulating million2 to $953.5 million in the amount again made it difficult and more costly a Five-Year Program for the Bank's of finance provided for economic devel- for the Bank to raise funds. Because of operations. While this Program has not opment by the World Bank and its the higher cost of borrowing, the Bank's yet reached the stage where it is ready affiliate, the International Development lending rate was raised from 6% to for consideration by the Executive Di- Association (IDA). The decline was 61/4% in January 1968. It was increased rectors, the President has reported that caused entirely by the approaching further to 61/2 % in early August. preliminary work indicates that, without exhaustion of the resources of IDA, which lends on concessionary terms Bank Loans and IDA Credits 1967/68 by Area and is mainly dependent on contribu- Expressed in millions of US Dollars tions from developed member govern- Bank Loans IDA Credits Total ments for its funds. Number Amount Number Amount Number Amount Discussions begun during the pre- Africa Cameroon . - $ - 1 $ .55 1 $ .55 vious fiscal year for a second general Ethiopia ... .... 1 13.50 1 7.70 2 21.20 replenishment of IDA's resources were Gabon. . ..................... 1 1.80 - - 1 1.80 completed in March 1968. In that month IvhaynaCoast .................... 1 1 - 1 10.00 1 1508.0 a proposal for replenishing the Asso- Kenya ...................... - - 2 12.80 2 12.80 ciation's funds was submitted by the Malagasy Republic. 1 4.80 - - 1 4.80 E u Malawi ........................ - - 3 21.20 3 21.20 Executive Directors to member govern- \ Somalia .....- ......... - - 1 2.30 1 2.30 ments for approval. The target date for Sudan .... .................. 1 24.00 1 8.50 2 32.50 the second replenishment to become Tanzania ...................... 1 5.20 1 3.00 2 8.20 Tunisia............ ... 1 10.00 - - 1 10.00 effective was originally fixed at June 30, Uganda. ...................... - - 2 8.40 2 8.40 1968. It was subsequently extended to 7 $ 65.10 13 $ 74.45 20 $139.55 September 30 (see pages 25-26). Asia & Middle East With the meager resources left at its Ceylon ...................... 1 $ 4.00 1 $ 2.00 2 $ 6.00 China ........................ 3 49.50 - - 3 49.50 disposal, IDA was able to make com- India ..................... . 1 25.00 - - 1 25.00 mitments to provide only a small vol- Iran .... 2 47.00 - - 2 47.00 Israel . . ....... .... 1 15.00 - - 1 15.00 ume of finance during the past year. \,; Korea .1 5.00 1 11.00 2 16 00 Including credits which were brought Malaysia ...................... 1 14.00 - - 1 14.00 to the stage of being ready for presen- Pakistan .....,,,,,. 1 35.00 1 10.00 2 45.00 tation to the Executive Directors for Papua and New Guinea.1 7.00 - - 1 7.00 Singapore .........._ 2 26.00 - -2 26.00 their consideration but for which ap- Thailand . .2 55.00 - - 2 55.00 proval had to be deferred until new 16 $282.50 3 $ 23.00 19 $305.50 replenishment funds become available, Europe IDA credits negotiated in 1967/68 to- 1 Spain . 1 $ 5000 - $ - 1 $ 12.50 taled $276 million. The actual amount Yugoslavia . 2 60.50 - - 2 60.50 of credits which could be committed 4 $123.00 - $ - 4 $123.00 Western Hemisphere during the period, however, totaled Argentina . 2 $ 70.30 - $ - 2 $ 70.30 only $106.6 million to 14 countries, com- Brazil.. 2 62.00 - - 2 62.00 pared with $353.5 million to 13 coun- . Colombia ..... ....... . 3 44.50 - - 3 44.50 N Costa Rica ... ................ 1 3.00 - - 1 3.00 tries in 1966/67. Ecuador ....................... - - 1 5.10 1 5.10 The World Bank lent a total of $847.0 El Salvador . ............. 1 2.80 - - 1 2.80 million to assist development in 31 Guatemala,. ..,,,,,,, 1 7.00 - - 1 7.00 Honduras . 1 7.50 1 4.00 2 11.50 countries, compared with $776.82 mil- Mexico 3 142.50 - - 3 142.50 lion in 33 countries during the previous Nicaragua . 2 19.25 - _ 2 19.25 Peru 1 17.50 - - 1 17.50 2Excluding a line of credit of 5109 million extended 17 $376.35 2 $ 9.10 19 $385.45 by the Bank to the International Finance Corporation TOTALS .44 $846.95 18 $106.55 62 $953.50 in October 1966. any departure from its existing sound sharp increase in finance provided for for the appraisal and supervision of policies, the Bank's lending could and development projects in the agricul- projects financed in the industrial field. should be increased during the years tural sector, to which nearly one-fifth Its operations are described in its own ahead. of the Bank and IDA's lending was Annual Report. The need to make the most effective directed. The need to expand and im- possible use of the resources available prove education facilities in the de- ICSID for development has been constantly veloping countries again received The International Centre for Settlement stressed by the Bank over the years close attention, though the number of of Investment Disputes (ICSID), which and is its guiding principle in its rela- education projects which became . P ( ), w c tionship with borrowing countries. The ready for financing was smaller than is now intec ear, hactued performance by a country in the promo- in 1966/67. While the Bank's efforts to pottial investorom actment tion of its economic development is an assist agriculture and education have Potenti ietors. Newnvestmnt important criterion for financial assist- been intensified in recent years, a sub- a b g a ance from the Bank or IDA. The Bank stantial part of the two institutions' foreign investors have entered into ance . sania ~~~~~~~~~~~~~force or are under negotiation which for its part tries to help borrowing financing has continued to be concen- proe or disputes between thepr countries to improve their economic trated on improving basic services. tie e submitted to the Cnre management. It has stepped up its eco- Lending for the development of power, Details of the Centre's affairs are con- nomic studies and technical assistance railways and roads again figured prom- tamed in its Annual Report. activities during the past few years with inently in the past year's operations. this purpose in view. Most of the assistance provided by The Presidency The Bank has attempted to increase the Bank to industry in 1967/68 was the effectiveness of the global develop- channeled through development fi- Mr. George D. Woods was succeeded ment effort by establishing close work- nance companies. The International by Mr. Robert S. McNamara as Presi- ing relationships with other multilateral Finance Corporation (IFC), the Bank's dent of the World Bank, IDA and IFC donors of assistance, including the re- affiliate concerned with helping to pro- on April 1, 1968. gional development banks and other mote the growth of the private sector of During the five years under Mr. agencies in the United Nations family, the developing countries, is responsible Woods' leadership both the volume and particularly the Food and Agriculture Organization of the United Nations Bank and IDA Commitments (FAO), the United Nations Educational, In millions of US Dollars Cultural and Scientific Organization By Fiscal Year (Unesco), and the United Nations De- -Three-Year Average velopment Programme (UNDP). The fos- ,(OD tering of coordination among donors of aid to particular recipient countries, and also to specific projects, has been -800 another important element of the Bank's work. . ~~~~~~~~~~~~~600 F Pattern of Lending Bank Details of Bank and IDA commitments 400 _ during the past year are given on pages 6, 8 and 9. As the tables show, the loans and credits extended by the two insti- 200 tutions have again been widely spread IDA throughout all regions of the develop- ing world. The year's lending was marked by a 1950 1953 1956 1959 1962 1965 1968 range of the World Bank Group's activi- tries to gain firsthand knowledge of and preparation of projects for financ- ties expanded considerably. Increasing their economies, and frequent contacts ing. Assistance with these and other emphasis was given to agriculture and with government and other officials. By questions is often given by the Bank in education, and intensive efforts were giving continuous attention to the eco- the normal course of its operations, on made to foster coordination among nomic situation of developing member other occasions through its formal tech- donors of development assistance countries in this way, the Bank hopes nical assistance activities. through the formation of consultative to help them make more effective use groups and other coordinating mech- of the resources at their disposal and Public Services anisms. In this period, too, the Bank so accelerate their rate of progress. greatly expanded its economic studies, Among the principal matters with An improvement in basic services, no- both in support of its operations and which the Bank assists member coun- tably power and transportation, has on broader issues of economic devel- tries are the formulation of development been a primary requisite for faster eco- opment. Technical assistance provided policies, the establishment of develop- nomic growth throughout the develop- to member governments was increased. ment organizations, the drawing up of ing world, and it has been to this im- These and other developments during investment programs for specific sec- portant task that the Bank has devoted Mr. Woods' tenure of office are re- tors and regions, and the identification much of its attention since it began to flected in this Report. Bank Loans and IDA Credits 1967/68 by Purpose Expressed in millions of US Dollars Bank IDA Total Agriculture The World Bank and IDA extend finance Argentina-Livestock development.$ 15.30 $ $ 15.30 Brazil-Livestock production............. 40.00 -40.00 to member countries for productive Ceylon-Irrigation ................................ - 2.00 2.00 projects which the Bank's studies have Costa Rica-Agricultural credit. .3.00 - 3.00 indicated are viable and will make an Iran-Irrigation and land development .22.00 - 22.00 Kenya-Tea production -. 2.10 2.10 important contribution to the borrow- Malawi-Land development .... - 9.70 9.70 ing countries' economic development. Malaysia-Land settlement ... 14.00 - 14.00 Neither institution wiI finance a pMexico-Irrigation ... 25.00 - 25.00 Neither institution will finance a project Pakistan-Agricultural credit. . . -.-.. .. - 10.00 10.00 unless it is satisfied, after detailed in- Thailand-Irrigation .. . 26.00 - 26.00 vestigation, that the project meets these Uganda-Tea production -... _ 3.40 3.40 criteria. $145.30 $ 27.20 $172.50 Education To provide the general framework Ecuador... $ - $ 5.10 $ 5.10 within which financing activities are Gabon. ......... 4 1.80 - 1.80 Malagasy Republic ................. 4.80 -4.80 conducted, the Bank seeks to acquire a Nicaraguai.. 4.00 - 4.00 comprehensive picture of the position Sudan .. - 8.50 8.50 and prospects of borrowing countries' $ 10.60 $ 13.60 $ 24.20 Electric Power economies and their development re- Argentina ..... .-.--..... $ 55.00 $ - $ 55.00 quirements. This makes it possible to Colombia 18.00 - 18.00 identify sectors and areas of high po- Guhatneamala 7.00 10.00 10.00 tential and provides guidelines to the Honduras. - -- 7.50 4.00 11.50 types of projects which should be given Mexico ...... ..................... 90.00 - 90.00 Nicaragua. ~ . . ................. 15.25 - 15.25 early attention. It also enables judg- Peru . 1750 - 17.50 ments to be formed about a country's Singapore ................................. 15.00 - 15.00 economic policies and other questions Sudan . 24.00 - 24.00 relvan t it eonoicgrothandto Tanzania ...................... 5.20 - 5.20 relevant to its economic growth and to $254.45 $ 14.00 $268.45 its eligibility for Bank or IDA financing. Telecommunications The Bank's economic analysis is a China... $ 17.00 $ - $ 17.00 Papua & New Guinea ................ 7.00 - 7.00 continuous process, based on work at Singapore ............ .. 3.00 - 3.00 Head Office, visits to borrowing coun- $ 27.00 $ - $ 27.00 assist economic development in 1948. the Sudan and Tanzania. It is probable entities which the Bank helped, under At that time, the inadequacy of basic that in the coming years the first power earlier loan operations, to set up or sub- services was the chief physical barrier loans or credits will be made to sev- stantially reorganize. to increasing production in the develop- eral other countries, notably among the The ability of a number of the Bank's ing countries. Since then, considerable newer members in Africa. Elsewhere in power borrowers to plan future expan- progress has been made in reducing the developing world, however, most sion programs and to prepare and this obstacle to development. The Bank of the finance now being extended for carry out sound projects has increased and IDA have contributed to the head- power development is for the further considerably over the years. In addi- way by providing substantial technical expansion of systems which have al- tion, some are now able to obtain at assistance as well as much of the re- ready been assisted by the two institu- least part of the capital for their fur- quired foreign exchange. tions. This has been notably the case ther development from other sources, During the past fiscal year the two in Latin America, where $214.3 million for example by making bond issues on institutions lent a further $268.5 million was lent for power development in capital markets or through joint-financ- for power development. The total in- seven countries during 1967/68 (see ing arrangements of the kind agreed cluded the first assistance provided by map, page 10). Frequently, too, the during the past year for power projects the Bank or IDA to the power sector in power authorities receiving finance are in Colombia and Mexico (see page 20). Thus, the dependence of these authorities on the Bank both for finan- Bank IDA Total cial and technical assistance is tending Industry to decline. Brazil-Aluminum production. ....... ........ $ 22.00 $ - $ 22.00 In the case of water supply, sewerage Ceylon-Development finance company ... 4.00 - 4.00 China-Development finance company ...... 15.00 - 1500 and drainage, on the other hand, where Colombia-Development finance companies f. 12.50 - 12.50 the Bank's participation is of more re- Greece-Development finance company 12.50 _ 12.50 cent origin, a considerable amount of India-Development finance company .25.00 _ 25.00 assistance with project preparation is Iran-Development finrance company. 25.00 - 25.00 Israel-Development finance company .... 15.00 - 15.00 frequently required by borrowers. At Korea-Development finance company 5.00 - 5.00 times also they need help to reorganize Pakistan-Development finance company. 35.00 - 35.00 Tunisia-Development finance company .10.00 - 10.00 or establsh agencies competent to Yugoslavia--Modernization of various industries . 10.50 - 10.50 carry out and operate the projects, $191.50 $ - $191.50 which are apt to require intensive su- Project Preparation pervision after loans are made. In this C~ameroon. .......I.. .......................... ............. $ - $ .55 $ .55 sector, the World Health Organization Transportation (WHO) has been giving valuable help to China-Railways .......... .... $ 17.50 $ - $ 17.50 El Salvador-Roads ......2.80 - 2.80 member governments in identifying and Ethiopia-Roads .13.50 7.70 21.20 preparing projects for consideration Ivory Coast-Roads 5.80 - 5.80 by the Bank IDA or other financing Kenya-Roads... - 10.70 10.70 b Korea-Railways ... - 11.00 11.00 agencies. The Bank made loans total- Malawi-Roads... - 11.50 11.50 ing $22 million for two water supply Mexico-Roads ............... .............. 27.50 - 27.50 Somalia-Roads . . - 2.30 2.30 projects during 1967/68. A number of Spain-Railways .50.00 - 50.00 other projects are now being processed Tanzania-Roads... - 3.00 3.00 and operations in this sector are ex- Thailand-Roads .29.00 - 29.00 Uganda-Roads .- 5.00 5.00 pected to expand in the coming years. Yugoslavia-Railways ....... .... .......... 50.00 - 50.00 Loans and credits totaling $247.3 mil- $196.10 $ 51.20 $247.30 lion were approved during the past year Water Supply for transportation projects, of which Colombia .... $ 14.00 $ - $ 14.00 Singapore. . .. 8.00 - 8.00 $118.8 million was for roads and $128.5 $ 22.00 $ - $ 22.00 million for railways. Support has again TOTALS .............. ........................ $846.95 $106.55 $953.50 been provided for substantial construc- tion programs, such as the building of the last major link in the Yugoslav rail- BankAIDA Assistance td Power Development way network, a 300-mile section from intheWsrnHemisphere Belgrade to Bar on the southern Adri- atic coast. The pattern of assistance to the transport sector, however, is tending to Jamaica($22.Om) shift away from projects of this scale. Mexico ($454.8.) In a number of developing countries, a u ($21.7.)) reasonably adequate national network Guatemala t$22.0mn 220ca" u (Z4m): Venezuela ($114.0m) of primary transport links has now been EI Salvador ($24.6m) c ($4 4 ) constructed. The most pressing current Costa Rica ($20.9m) Trinidad&Tobago($21.4n) need in many countries is for tertiary or Panama($4.Om) feeder roads, in particular to connect Colombia ($223.8m) agricultural districts with the main high- Ecuador ($10O.On, ways or rail lines. This requirement has been reflected in lending during the Peru ($66.5)' past year. A loan of $27.5 million to r ($4 2.2m) Mexico, for example, included finance :olivia (10.) for 550 miles of tertiary roads as well as for 800 miles of major highways. The Location of power projects assisted by construction or imrovement of aroundthle Banik or IDA (lending to each construction or improvement of around i ; fcountry in parentheses) 7,000 miles of roads in Mexico has now been assisted by Bank financing. An encouraging feature of the past' year's operations in the transport sec- Cblle ( Uruguay ($57.8m) for has been the growing number of :rgen ina ;$148.4m) projects coming forward for financing TToJune30,1968,the Bankand lDA had in Africa, where assistance with project lent a total of $3,948.6 million for power developiment, of which identification and preparation is being $1,846.4 million had been extended to provided by the Bank's two Permanent developing countries in the Western Missions established on that Continent Hemisphere to:assist the addition in 1964. of about 15,000 megawatts to their Another method extensively em- electric generating capacity, together with ployed by the Bank to help countries transmission and distribution facilities. identify and prepare projects for financ- ing is by organizing and directing sec- tor and feasibility studies. Over the years the bulk of these studies, which cerned with transport development of the detailed engineering of road proj- are discussed in more detail in the sec- one kind or another. As an indication of ects. One such credit was extende&d tion on Technical Assistance, have been their range, they included a study of the during the past year, to Cameroon, and concerned with transport development, East Pakistan river ports and water- two more are being considered; a credit and this was again the case in 1967/68. ways, the engineering of the Owendo- is also under consideration for the d6- The new pre-investment studies initi- Belinga railway in Gabon, and the tailed engineering of a port project. To ated during the year, with finance pro- second phase of a major transport sur- an increasing extent, too, provision is vided by the Bank or the UNDP, are vey in Brazil. being made in project financing for listed on page 16. Of the 42 studies The technique has also been used of feasibility studies and the detailed engi- under way or authorized at June 30, providing engineering credits to help neering of future road development. A 1968, no less than 36 were directly con- finance project preparation, especially $5.8 million loan to the Ivory Coast in June, for example, included funds for the establishment of field workshops for promoting commerce and assisting feasibility studies of about 430 miles of and the improvement of cost account- administration. Great technical strides primary roads and for detailed engi- ing techniques. have been made in recent years, for neering of 310 miles identified as hav- Close attention is being given by the example through the use of satellites ing the highest economic priority. Bank to the possibilities of increasing for international communications. The In the case of railways, provision is the efficiency of the transportation of Bank has found that on the whole capi- being increasingly made in project fi- general cargo through the use of con- tal is available from many sources for nancing for consultant services to im- tainers. Containers are increasingly be- economically sound projects based on prove operations. Improvements in the ing employed in international trade, these new techniques. It has thus technical efficiency of railways should and the Bank is ready to assist in the tended to concentrate largely on the result from capital expenditure and financing of facilities for handling them less glamorous but vital task of helping revised procedures, but the most where economically justified. The staff the development of internal telecom- hoped-for change is the adoption by has participated in seminars and inter- munication systems. During the year, management of a more forward-looking national conferences dealing with this three loans totaling $27 million were and vigorous attitude toward the run- question during the past year. A project approved for telecommunication proj- ning of railways as viable commercial for the expansion of the port of Singa- ects aimed at expanding and improv- concerns. pore, for which a loan of $15 million ing the telecommunication services in Considerable emphasis is being was approved in August 1966, has been the Republic of China, Papua and New placed by the Bank in its transport op- revised to provide for specialized con- Guinea and Singapore. erations, especially in Africa, on staff tainer berths in place of the general training and other aspects of institu- cargo berths originally planned. Agriculture tion building. Many highway projects An important need in many develop- financed by the Bank and IDA have ing countries is for the improvement of The Bank is making intensive efforts to included provision for improving gov- international and internal telecommuni- increase its contribution to the develop- ernment administration and organiza- cation systems as an essential means ment of agriculture, which is the critical tion through the assistance of qualified advisers and the training of engineers and other technical personnel, both on Projects under Way the job and abroad. (identification, preparation, appraisal, and negotiation) At the same time, the Bank is direct- Quarterly, 1963 to 1968 ing attention to the need of developing 100 countries to conserve existing invest- ment in roads through the strengthening - . ,__-_ of maintenance activities. Experience 80 Agriculture / % - - has indicated that countries tend to J* '-_ <' 'Vt -- neglect maintenance in favor of ex- Public Utilities penditure on new road construction, 60 and that timely investment in road main- , / tenance can consequently yield large ' Transportation economic returns. The Bank and IDA _ - - are currently financing or contemplat- 40 *. ing road maintenance projects in more >- Education than ten developing countries. These _ ____ ._ __ _ projects generally provide for improv- 20 ndustr ing the maintenance organization with the assistance of foreign experts, the local training of mechanics, drivers and IF1 FVF I I llli operators, the purchase of road main- 1963 1964 1965 1966 1967 1968 tenance equipment and spare parts, 'Excluding Development Finance Companies. aspect on which economic growth must to-market roads, electric power for Pakistan and the Philippines, which will be based in most developing countries. farm equipment and trained personnel. facilitate the cultivation of the new high- While lending for large-scale irrigation Despite the shortage of IDA money, yielding varieties of rice. In India, the and flood control projects has remained a total of 13 agricultural projects in- Bank Group through IFC is assisting an important part of operations in this volving Bank or IDA financing of $172.5 the construction of a large new fertilizer sector, financing activities by the Bank million was approved by the Executive plant. In the same general market area, and IDA have been widened to include Directors during 1967/68, compared it is in the final stages of appraising a projects covering a broad range of agri- with 12 projects involving $87 million project for the bulk production of cer- cultural requirements, and additional in 1966/67. Particular attention has tified quality seeds of the new high- ways to assist farmers are being con- again been focused on the scope for yielding varieties of rice, wheat and stantly sought. Many of the projects raising output from existing farmland other crops. now being supported are innovations by the increased use of modern inputs, In support of the Bank's aim of rais- for the two institutions intended to set such as improved seeds, fertilizer and ing agricultural productivity through the pattern for agricultural improve- plant protection materials, and by im- improved inputs, IFC has continued ments on a much wider scale in the provements to equipment, fencing, pas- during the past year to investigate the future. ture, breeding stock, tube wells and possibilities of expanding fertilizer out- The efforts to promote agricultural other capital facilities. put within the developing countries development have required consider- The Bank is acutely aware of the im- themselves. Several fertilizer projects able emphasis on technical assistance, pact which the new cereal varieties are were under consideration at the end of both to help borrowers identify and capable of having on agricultural output the fiscal year. prepare projects for the Bank or IDA's when used in conjunction with fertilizer, A method extensively adopted by the consideration and to ensure that loans water and other necessary inputs. In Bank to help raise agricultural produc- and credits, once approved, are used Asia, for example, the Bank has over tion has been to channel finance to effectively. A number of lending opera- the past few years financed irrigation farmers through credit institutions with tions have included provision for initial projects in Malaysia and Thailand, and the managerial and technical compe- technical services and the employment has provided agricultural credit for the tence, and the autonomy, to act as sat- of necessary consultants. They have supply of small irrigation equipment in isfactory intermediaries. The Bank has also made provision in some instances for the conduct of adaptive research. A broad indication of the extent to a L i r Agriculture which the Bank has intensified its ac- tivities to assist agricultural develop- Amounts i us ola refpr t annual ag ipoict ment is given by the lending statistics. To June 30, 1962, a total of $583.2 mif- r p storag lion had been lent specifically by the ~ eea-ups ammcief7 Bank and IDA for agricultural proj- rgainniflocnro ects. By June 30, 1968, the figure was Ln laac,fr mrvmn $1,252.8 million. Thus, during the past tiaocimoeen six years, the two institutions have lent $9- $1 ~ ~ ~ ~ ~ ~ $7 more money for agriculture than in the 7 previous sixteen. Again, in the fiscal year 1961/62, agricultural projects ac- counted for about 71/2,% of the Bank and IDA's total lending to developing countries. During the past fiscal year, 5/6-155Rgt6.19/6 the proportion was 18%. In many in- stances, lending sutospatuedeeohenenronetinsihliestkorsetsad nsuhaaesi also assisted agricultural development; iclddnteaprraecter. 1 with representatives of the African De- efforts had productive results during critical and long-standing dispute be- designated as the Fund's Administrator. megawatts. The initial installation of 300 The Fund amounted to the equivalent megawatts has already increased the of $895 million, including the equiv- installed capacity of West Pakistan's . - alent of about $174 million to be pro- northern grid by about 50%. The net vided by India under the Treaty and a cost of the Mangia project, together '' --.f'-! ' " loan of $80 million from the Bank. with the link canals, barrages and other --=s -m I ~When some of the civil works con- related works, is estimated at around awtipdi, g tracts had been awarded, it became ap- $1,080 million. ,.' .e & parent that the funds committed would While Mangla was being built and *Lyal p -rep be insufficient to complete the pro- while construction continued on the Mn e = I r,gram of works contemplated under the other Treaty works, a World Bank team Agreement, which originally included headed by Dr. Pieter Lieftinck, an Exec- WESTPAKIST the construction of two large dams and utive Director of the Bank and IDA, and related works, one on the Jhelum assisted by a number of consulting (Mangla) and the other on the Indus firms, was engaged in carrying out the River. Subsequently, an additional Special Study provided for in the 1964 amount equivalent to $315 million was Supplemental Agreement. The Study Ka4acbi -~yderabad made available under the Indus Basin was in two parts. The first part, com- Development Fund (Supplemental) pleted in early 1965, dealt with the pro- Agreement of 1964 by the parties to the posal for building a dam on the Indus 1960 Agreement to cover the balance at Tarbela and found the project to of the foreign exchange cost of the be technically feasible and economi- works. The Bank agreed to provide cally justified. The second part, com- tween India and Pakistan, and opened about $58 million, which took the form pleted in July 1967, not only endorsed the way to the use and development of of an IDA credit. The Supplemental the high priority of the Tarbela project water resources on which depends the Agreement also incorporated arrange- but also presented a comprehensive livelihood of over 50 million people in ments whereby Pakistan undertook to program for the utilization of West these two countries. The Treaty was meet the full rupee cost of completing Pakistan's water and power resources concluded after several years of nego- the works. The financing plan adopted to provide the Government with a basis tiations in which the Bank played an at the time of the Supplemental Agree- for development planning in these sec- active role. The engineering concept ment was calculated so that a foreign tors within the framework of successive which underlay the Treaty was a system exchange balance would be available Five-Year Plans (see also page 16). of enormous "link" canals for trans- for the Tarbela project or some other The Tarbela Dam itself, the centerpiece ferring water from the Indus, Jhelum wateror power project in West Pakistan. of the comprehensive program, will be and Chenab Rivers to meet the irriga- Provision was also made for a study the largest earth and rock fill dam in tion requirements of eastern portions of the water and power resources of the world. of West Pakistan which had hitherto West Pakistan to be carried out by the In May this year, the World Bank and been served by the Beas, Ravi and World Bank. six countries-Canada, France, Italy, Sutlej, the waters of which were allo- The Mangla Dam came into opera- Pakistan, the United Kingdom and the cated to India. tion in November 1967. The storage United States-established theTarbela To provide funds for implementing provided by the dam will permit West Development Fund to complete ar- this plan, an international agreement Pakistan to replace the water to be di- rangements for providing financing for was signed, simultaneously with the verted by India from the eastern rivers the construction of the Tarbela project. Treaty, to establish the Indus Basin when the transitional period allowed Under this agreement, which was nego- Development Fund. The parties to the under the Treaty comes to an end. In tiated within the framework of the Paki- agreement were Australia, Canada, addition, the dam-one of the largest in stan Consortium, the Government of Germany, New Zealand, Pakistan, the the world-will make possible the de- Pakistan will provide the Tarbela De- United Kingdom, the United States and velopment of a hydroelectric power velopment Fund with rupees for the the World Bank, and the Bank was potential of between 800 and 1,000 required local expenditure, estimated at the equivalent of $335 million. The for additional supplies of irrigation of individual developing countries' eco- bulk of the foreign currency require- water and electric power. At its initial nomic problems, policies and pros- ments will come from the Indus Basin capacity, the Tarbela reservoir will pects, the analysis of particular sector Development Fund, the balance of store sufficient water to increase rabi and project questions and the prepara- which available for Tarbela is now ex- (winter) river flows on the Indus in an tion of basic statistical material. It also pected to be $324 million. Commitments average year by about one-third, and in involves the analysis of broader eco- to provide additional foreign exchange a dry year by about one-half. Under the nomic problems, some of them world- have been made as follows: Canada scheme of development which is en- wide in scope, which affect the progress $4.6 million, France $30.4 million, Italy visaged, Tarbela would also contribute of the developing countries. In the year $40 million, the United Kingdom $24 over one-quarter of the total amount under review, apart from its continuing million, the United States $50 million, of electric energy required by West work on specific country, sector and and the Bank $25 million. The Bank will Pakistan over the decade 1975-85. By project problems, and in addition to the again administer the Fund. the end of that period, its contribution special commodity study referred to Altogether, these promises of aid to total electricity requirements in the above, the Bank's staff has been en- total the equivalent of $498 million. The Province would be more than one-third. gaged on a number of studies relevant foreign exchange cost of Tarbela, in- either to the problems of the develop- cluding an allowance for contingencies, ing world as a whole or to its own work. is now estimated at $492 million. However, the Canadian, UK and US In response to resolutions adopted by Trade and Economic Growth: The eco- contributions can be used only for ex- the Boards of Governors of the Bank nomic progress achieved by develop- penditures in those countries and thus and the IMF at their Annual Meetings ing countries depends not only on their part of them may not be usable. The in Rio de Janeiro in September 1967, overseas earnings from commodities World Bank loan and the US contribu- the staffs of the two institutions have but also on their balance of payments tion will be reduced pro rata should been preparing a draft of a special position as a whole. This in turn is sig- there be a reduction in foreign ex- study concerning the problem of the nificantly affected by the growth of their change requirements. In addition to the stabilization of prices of primary prod- foreign trade, particularly with the de- funds provided under the Agreement, ucts, possible solutions to the problem veloped nations. A number of studies France and Italy have expressed will- and the economic feasibility of these dealing with developing countries' ex- ingness to make contributions of up to solutions. The draft examines postwar ternal trade in general, and some of the the equivalent of $10 million each, if at price fluctuations, trends in commodity factors determining its growth, have a later stage it is established that the trade and their causes, considers been completed in the year under re- foreign exchange funds from the bi- measures to improve the level and view. "The Export Experience of De- lateral contributions, together with the trend of export earnings and analyzes veloping Countries", an analysis of balance of the Indus Basin Develop- measures to deal with fluctuations growth patterns in this field between ment Fund and the Bank loan, are in- around the trend. It attempts to view the 1950 and 1963, was published in the sufficient to meet the foreign exchange commodity problem in the perspective series of World Bank Staff Occasional costs of the project. of development efforts and policies, Papers in November 1967. The main civil works contract for giving particular attention to the prob- Another study completed during the Tarbela, the largest single contract ever lems and prospects of diversification year, at the request of UNCTAD and let, was awarded in May this year by of production and exports. The draft presented to the second session of the Government of Pakistan and the will be considered by the Executive UNCTAD in New Delhi in February- West Pakistan Water and Power Devel- Directors of the Bank and the IMF prior March 1968, examined the impact of opment Authority (WAPDA), after eval- to the submission of the study to the industrial countries' tariffs on develop- uating tenders by four groups, to a Boards of Governors. ing countries' fabricated exports to consortium of Italian and French com- them and assessed the possible reper- panies led by IMPREGILO of Milan. - cussions of the so-called Kennedy The completion of the dam by early Round of tariff reductions negotiated in 1976 is a strategic element in the pro- The economic work undertaken by the 1967 on this sector of developing coun- gram for meeting West Pakistan's need Bank's staff includes the examination tries' trade. Export Credits: Two studies dealing one for an analysis of possible improve- the transportation sector and examines with export credits were prepared by ments in techniques of lending and in some important issues in the cost-bene- the Bank staff in response to a resolu- particular of conditions and schedules fit analysis of a transport project. tion of the first session of UNCTAD in of repayment, and for advice to UNC- In January 1968, a study of selected 1964. The first study, completed in Jan- TAD's Secretary-General on the ques- economic development projects and uary 1967, examined suppliers' and tion of access to capital markets by their appraisal, prepared by John A. other types of export credits extended developing countries and multilateral King, Jr., a member of the Bank's staff, by the industrialized countries. The development institutions. Work on this was published by The Johns Hopkins second study, which was presented to study by the staff is now under way. Press on behalf of the Economic De- the Secretary-General of UNCTAD in A study produced in 1965/66 by the velopment Institute. The book presents February 1968, dealt with another as- Bank's staff at the request of the first 30 case studies of electric power, trans- pect of suppliers' credits, namely, their session of UNCTAD, on "Supplemen- port and industrial projects submitted use by developing countries. It ana- tary Financial Measures", was consid- to the Bank for financing. lyzed experience in financing develop- ered at the New Delhi meeting. Under A number of studies, both theoretical ing countries' exports of capital goods, the scheme put forward in the study, and practical, have been made during particularly in the light of the provision supplementary finance would be pro- the past year to try to refine existing of the Inter-American Development vided to support development programs techniques of analysis and judgment on Bank (IDB) for rediscounting facilities that would otherwise be disrupted by policy questions. They include "A Cost- for this purpose. the failure of export earnings to come Benefit Approach to Educational Plan- At the second session of UNCTAD, up to reasonable expectations. The ning in Developing Countries" and "The the Bank and the United Nations Secre- Intergovernmental Working Group set Economics of Road-User Charges". tariat were asked, in consultation with up earlier by UNCTAD to examine the Each of these studies is being followed other institutions, to continue the study study is to be expanded and will dis- up by field work to test the validity of its of commercial credits as a means of as- cuss further various unresolved issues approach to the problem in question. sisting developing countries to increase and report to the UN Trade and De- their exports and of the possibility of velopment Board. External Debt Statistics: The Bank is refinancing by international financial the principal source of information for institutions of commercial credits ex- Coffee Study: Work has continued on a data relating to external debt. For some tended by developing countries. study financed and sponsored jointly time it has had an agreement with the by the Bank, FAO and the International IDB under which it provides the latter Multilateral Investment Insurance: At Coffee Organization of long-term trends with debt information on Latin American the request of UNCTAD, work continued the rqetoUNTDwokcof coffee demand and supply, the need countries. Similar agreements have re- during the year on the study of a multi- laterainvthestmearonthe insturance schee of the main coffee-producing countries cently been reached with the African whihewuld inesurent ineprivate foreign to diversify into other lines of produc- Development Bank and the Asian De- whinvestmen insudevnelopringt coutreie tion, and the problems connected with velopment Bank. againvestmlos rvesulting from unon-coin- such diversification. This study is ex- The expanded system operated against losses resulting from non-com- mercial risks. A first draft of Articles of pected to be completed in 1968. jointly by the Bank and the Organization Agreement for an international invest- for Economic Cooperation and Develop- ment insurance agency, prepared by Sector and Project Analysis: The Bank ment (OECD) for reporting on statistics the staff, has been discussed by a Com- seeks constantly to improve the tools of loans and grants by developed to mitteeoftheBank'sExecutiveDirectors. and methods of analysis used in the developing countries became opera- A revised draft, reflecting the discus- study of economic- questions and par- tional during the year. While a number sions, has been completed for the Ex- ticular types of project. A study entitled of reporting problems still remain to ecutive Directors' furtherconsideration. "Sector and Project Planning in Trans- be worked out, the system should in portation" was published as a Staff Oc- 1968/69 produce valuable data on capi- Other UNCTAD-Requested Studies: casional Paper in November 1967. This tal flows to the developing countries as Among the requests made of the Bank study discusses the main steps in the well as help improve the quality of the by the second session of UNCTAD was preparation of a development plan for debt statistics. |>' ji9 '^ cvr a n'4,>s^' countries. Every effort has again been A total of $458 million of debt ma- made to achieve the broadest possible tured during the year, including an Borrowings: The Bank obtains the market for the Bank's obligations. Of issue of $150 million of 33/4% Ten-Year larger part of its funds by the issue of the $735 million of issues sold by the Bonds which came due in May 1968, bonds and notes to investors; the state Bank in 1967/68, $300 million were virtually all of which was held by in- of capital markets is therefore of crucial marketed in the United States by means vestors in the United States. The re- importance to it. Despite tight condi- of two public offerings, of which $25 mainder of debt maturing during the tions in capital markets, the Bank was million was purchased by investors in year, equivalent to $308 million, was able, with the cooperation of govern- other countries. Outside the United held by investors in other countries. In ments, to market $735 million in bond States, the Bank placed a total of $348 addition to these maturities, the Bank and note issues in 1967/68. Because of million equivalent of bond and note retired some $55.9 million equivalent of the general upward trend in interest issues with central banks, government debt by means of sinking fund and pur- rates, however, the average cost of accounts and international organiza- chase fund operations, including por- these borrowings rose to a new high tions. Placements included the Bank's tions of US dollar, Canadian dollar, level of 6.17%, compared with 5.52% first sale of long-term bonds in Saudi Deutsche mark, Netherlands guilder, in 1966/67 and 4.88% in 1965/66. Arabia. The remaining $87 million of Swiss franc and sterling issues. During the first six months of the fis- issues sold outside the United States cal year, the Bank's lending rate was were marketed by means of public Commitments, Repayments and Loan held at 6%, the rate adopted in Febru- offerings of the Bank's bonds in Canada, Sales: Loans held by the Bank at June ary 1966, but the higher cost of borrow- Germany, the Netherlands, Sweden and 30, 1968, including those not yet effec- ing made it necessary to increase the Switzerland. The offering in Sweden tive, and net of exchange adjustments, rate to 61/4% in January 1968. Since was the Bank's first in that country, that totaled $7,576 million, an increase of the fiscal year ended the rate has been in the Netherlands the first since 1962. $454 million. Disbursements on loans further increased, to 61/2%, as from during the past year amounted to $771.9 August 1, 1968. Increase in Outstanding Funded Debt, million, compared with $790 million in It is the policy of the Bank that the 1967/68 1966/67. A total of $2,425.9 million re- rate charged on its loans should be Millionsof Millions of mained to be disbursed over a period kept as low as is compatible with the US Dollars US Dollars of years, estimated to extend to mid- (equivalent) (equivalent) maintenance of its ability to raise in 1975. the capital markets of its members, or Borrowings The Bank's borrowers repaid $357.6 US dollars ...... 590.4 otherwise borrow, the funds it needs. Canadian dollars 13.9 million on maturing loans, against In order to maintain the reputation and Deutsche mark ...... 75.9 $346.5 million in the previous year. Re- financial strength on which this ability Netherlands guilders. 11.0 payments included $236.5 million paid Swedish kronor ....14.5 depends, the Bank, in determining its Swiss frans ........f .29.1 734.8 to the Bank and $121.1 million to in- own lending rate, pays due regard to vestors who had purchased borrowers' such criteria as the trend of its earn- in Previous Years obligations from the Bank. Aggregate ings, the maintenance of an adequate US dollars 145.0 repayments on the Bank's loans to June ratio of earnings to interest require- 879.8 30, 1968, were $2,917.9 million, $1,499.6 ments on its funded debt, the mainte- Less Issues matured million having been repaid to the Bank in fiscal year. ....457.9 mlinhvn enrpi oteBn nance of a reasonable rate of return on Purchase & Sinking and $1,418.3 million to loan purchasers. its capital and reserves, and the ac- Fund redemptions ... 55.9 In order to offset temporarily part of cumulation of adequate reserves. Bonds sold in 1967/68 the balance of payments effect on India on delayed delivery Funded debt of the Bank outstanding basis for delivery of debt service payments to the Bank, on June 30, 1968, aggregated $3,289.6 after 6/30/68 . ........ 145.7 the Bank during the year opened four million, an increase of $214 million Revaluation of out- special interest-bearing deposit ac- compared with a year earlier. More issues. 6.0 665.5 counts with the Reserve Bank of India. than58% was held by investors outsideNet Increase In The accounts are denominated in the United States; there are holdings Outstanding Funded US dollars, pounds sterling, Deutsche of Bank bonds and notes in over 60 Debt 214.3 mark and Japanese yen. As of June 30, 1968, the balance in the accounts serve, raising it to $963.1 million and withtheReserveBankof Indiaamounted World Bank: Funds Available for Lending total Reserves to $1,254.1 million. The to the equivalent of $30 million. No To June 30,1968 Executive Directors at the same time further such deposits are expected to In US Dollars recommended to the Board that a fur- be made, and the World Bank will with- ther $75 million be transferred to IDA draw funds from the accounts from , 7t: by way of a grant. time to time, but not later than March 31, 1971. Sales of participations and portfolio $ items showed an increase during the $3524m In March 1968, after extensive negotia- past year for the first time since the tions by IDA with the economically more fiscal year 1961/62. The total of these advanced (Part I) member countries, transactions was $107.4 million, a rise $1,906m the Executive Directors of the Associa- of $38.8 million compared with 1966/67. tion recommended and transmitted to The declining trend of sales of par- member governments for approval a ticipations and portfolio items during proposal for a second general replen- recent years has been caused by the ishment of IDA's resources at the rate upward movement of interest rates on Total: $9,985m of $400 million annually for three years, competing securities and the restric- with the first payment by the contribut- tion on overseas investments by some sorrowings ing countries scheduled for November capital-exporting countries. Sales of Loans 8, 1968. Under the terms of the pro- Usable Subscriptions posal, which represented about a 60% Income and Expenditure: Net income of Repaymentsof Principal increase over the first general replen- the Bank for the past fiscal year was I. incomefrom Operations ishment agreed in 1964, the 18 Part I $169 million, approximately equal to member countries of IDA would make the net income of $170 million in contributions equivalent to $1,170.5 1966/67 and a sharp increase com- $131 million the year before. The rise million in the amounts shown below: pared with earlier periods. The higher was attributable to the increase in out- earnings in the past two years have standing bond and note issues and to Country (uS Dollars) reflected in part the higher yields ob- higher borrowing costs during the year. Australia .. .. 24,000,000 tainable on the Bank's temporary in- Administrative costs, after deduction of Austria 8,160,000 vestments and the increase in loans $4.2 million charged as a management Belgium ..20,400,000 Canada ... . .. 67,200,000 held by the Bank. Commission still fee to IDA, aggregated $29 million com- Denmark. .. . . 12,120,000 charged on outstanding portions of pared with $24 million computed on a Finland . 3,720,000 a few of the Bank's earliest loans comparable basis for 1966/67. France ...97,200,000 amounted to $0.6 million and was Under a decision approved by the Iermany .... 17,000,000 credited to the Special Reserve, raising Board of Governors at the Annual Japan . . 66,480,000 it to $291 million at June 30, 1968. Meeting in September 1967, $10 mil- Kuwait 5,400,000 Gross income was $356 million, com- lion of the Bank's net income for the Nethermandso 26,520,000 pared with $331 million in the previous fiscal year 1966/67 was set aside for Norway ... . 10,680,000 year. Interest on loans rose by $28 mil- transfer to IDA in the form of a grant, South Africa . 3,000,000 Sweden. -..... 24,120,000 lion to $275 million, and other income after $160 million from net income had United Kingdom . 155,520,000 by $3 million to $8 million. These in- been allocated to the Supplemental United States .480,000,000 creases were partially offset by a de- Reserve Against Losses on Loans and cline of $6 million in interest on invest- Guarantees and From Currency Devalu- Five of these countries - Canada, ments to $66 million. The Bank's total ations. After the close of the 1967/68 Denmark, Finland, the Netherlands and expenses amounted to $187 million. fiscal year, the Executive Directors al- Sweden-also proposed to make avail- Bond and note interest and issuance located $94.1 million of net income of able the equivalent of $17,520,000 in costs rose sharply to $153 million from the fiscal year to the Supplemental Re- supplementary contributions to IDA IDA: Funds Committed and Available _. their consideration but for which ap- As*of June 30, Years 1961 to 1968 proval had to be deferred until new In millions ot US Dollars ~~~~~~~replenishmnent funds become available, credits negotiated during the past fiscal Funds Availabe i oyear totaled $276 million. The actual amount of credits signed during the period totaled only$1 06.6million.These 15~~~~~~~~~~~~98 commitments absorbed all except $7.2 million of the $1,795.6 million of re- sources available to IDA up to June 30, 1968. Disbursements against these and earlier commitments amounted to $318.8-million, raising total disburs~e- ments to $1,342.5 million. Taking into consideration the additional special supplementary contribution of Sweden and the loan from the Swiss Confedera- tion, both discussed below, theAssocia- 1961 1962 1963 1964 1965 1966 1967 1966 den durces the ithree for endit- ment totaled $40.7 million at June 30, 1968. during the same period and on the effect on the US balance of payments. The Swedish Government announced same payment terms. In addition, the Amounts deterred, however, would be further support for IDA during the year, Swiss Confederation, not a member of subject to subsequent call, thus per- in addition to its contributions to the IDA, has agreed to make IDA a 50-year mitting the entire amount of the replen- proposed general replenishment. A interest-free loan equivalent to approxi- ishment to be committed. As a neces- total of $21.36 million in additional mately $12 million payable in three sary corollary to this deferment ar- special supplementary contributions is equal installments on July 1 of the three rangement for the United States, a num- to be made available to IDA by Swe- years 1968, 1969 and 1970. The com- ber of other participating countries den during the three years ending bined total from the above sources agreed to permit a compensating ac- June 30, 1971. Of this, $4.12 million will would enable IDA to make new lending celeration of IDA's drawings upon their be made available in the fiscal year commitments of $1,200 million, contributions in order to meet its dis- 1968/69, $7.12 million in 1969/70 and The replenishment proposal was bursement requirements. $10.12 million in 1970/71. Under six based upon a continuation of IDA's The target date for the second re- earlier special supplementary contribu- policy of requiring full international plenishment to become effective was tions, Sweden had provided IDA with a competition for procurement of goods originally fixed at June 30, 1968. In total of $28.14 million. A supplementary and services financed by it. However, order for the obligation to become bind- contribution of $1.32 million is 'also to in view of the serious balance of pay- ing on any of the countries, at least 12 be made to IDA by Norway, subject to ments problems of the United States, countries, pledging not less than $950 the effectiveness of the second replen- it was provided that, during the three million, had formally to notify IDA by ishment. The amount will be paid in years ending June 30, 1971 and for as that date that they would make their three installments of $0.84 million in long thereafter as permitted by the specified contributions. Since a suffi- calendar year 1968 and $0.24 million in state of its resources, IDA would call cient number of formal notifications had 1969 and 1970. upon the US contribution to meet dis- not been received by June 30, the Arrangements became effective in bursements on new credits only for the Executive Directors extended the clos- April 1968 for a loan from the Swiss amount needed to finance procurement ing date to September 30, 1968. Confederation to the Association of in the United States. Thus, during that Including credits which were brought Sw F 52 million (approximately $12.1 period, payments under the second re- to the stage of being ready for presen- million). The loan will be on the same plenishment would have no adverse tation to the Executive Directors for terms as those on which IDA itself ex- tends credits for projects: it will carry tors recommended to the Board of Gov- donesia, Lesotho, Malta, Mauritius, no interest and will be repayable in ernors that a further grant to IDA, in the Trinidad and Tobago, Uruguay and 40 annual installments beginning July amount of $75 million, be made out of Venezuela.5 1, 1979. The proceeds will be made net income for the year. This recom- The Bank's subscribed capital in- available to IDA in three equal install- mendation will be considered by the creased from $22,850 million to $22,942 ments on July 1 of the years 1968, 1969 Governors at the forthcoming Annual million. The Gambia's subscription to and 1970 and will be freely usable in Meeting in Washington. the Bank is $5.3 million. In addition, IDA's operations. four governments increased their sub- At the Annual Meeting in Rio de scriptions to the Bank's capital by a Janeiro in September 1967, the Board total of $86.8 million, as shown in the of Governors of the Bank approved the During the fiscal year, the membership following table: transfer of $10 million of the Bank's of the Bank was increased from 106 to (Millions of US Dollars) 1966/67 net income to IDA as a grant. 107 governments, and that of IDA from Member Fromn To A total of $210 million has now been 97 to 98. by the admission of The Korea ....25.0 .... 53.3 made available by the Bank to IDA Gambia in October. At the end of the Peru ..35.0 63.5 since the first transfer of this kind was year, action was pending on member- Philippines . .. 100.0 117.3 approved by the Board of Governors ship in the Bank of Botswana, Lesotho, Viet-Nam . 300 42.7 in 1964. After the close of the 1967/68 Malta and Mauritius, and on member- 5Botswana became a member of the Bank and IDA fiscal year, the Bank's Executive Direc- ship in IDA of Botswana, Guinea, In- and Lesotho a member of the Bank in July 1968. I,~~~~~~~~~k I, S1t; , A Thai worker inspecting corn at an experimental farm. Bank loans made to Thailand for irrigation and flood control schemes are helping to increase the country's agricultural production. During the year, there were several Mr. Orvis A. Schmidt, Special Ad- gramming and Budgeting Department. changes among the Executive Direc- viser to the President, died in Novem- In view of the Department's additional tors. In July, Mr. Rene Larre, who had ber. Mr. Schmidt was associated with functions, its former responsibility for served for ten years as Executive Di- the Bank from its earliest days and dur- reviewing the efficiency of the Group's rector for France, was succeeded by ing the course of his career served in organizational structure and operating Mr. Georges Plescoff. In August, Sir a number of senior positions. He had procedures has been transferred to the John Stevens, Executive Director for special responsibility for coordinating Administration Department. the United Kingdom since January the activities of the Bank with those of Mr. John H. Adler, a Senior Adviser 1965, was succeeded by Mr. Evan the Inter-American Committee for the in the Economics Department and pre- Maude. Mr. Sundara Rajan, Executive Alliance for Progress (CIAP) and other viously Director of the Economic De- Director for India since August 1963, national and international agencies velopment Institute, has been promoted was succeeded by Mr. S. Jagannathan concerned with Latin American affairs. to the position of Associate Director at the end of March. Dr. Otto Donner, In April, on his retirement from the of the Programming and Budgeting who had served as Executive Director British Treasury, Sir Denis Rickett Department. for Germany for nearly 14 years, retired joined the Bank and IDA as a Vice Mr. Bernard R. Bell, Deputy Director at the end of April. He was succeeded President. He had been the United of the Projects Department, has been by Dr. Ernst vom Hofe. Kingdom Alternate Governor of the named Director of the Bank's Resident The death occurred in June of Mr. Bank since 1958. Staff in Indonesia, to take up his new Muhammad Ayub, who since November The Bank's European Office under- ost in August 1968. 1966 had been the Executive Director went changes during the year. Mr. John g representing Iran, Iraq, Jordan, Ku- D. Miller, the Bank's Special Repre- the Bank and IDA numbered 1,590, wait, Lebanon, Pakistan, Saudi Arabia, sentative in Europe, retired in April the nand 75 countres. Syrian Arab Republic and United Arab after 131/2 years' service with the Bank. comprising nationals of 75 countries Republic. He was succeeded by Mr. Mr. Arthur Karasz, Manager and Dep- Thefirst 56Young Professionals have S. Osman Ali. uty Special Representative in Europe, completed their training and are now Mr. Ayub's professional life was was appointed to the newly-created assigned to regular positions on the spent in governmental and international position of Director of the European staff of the Bank and IFC, while 42 addi- work. He participated in numerous in- Office. tional Young Professionals are at pres- ternational conferences and served as Mr. William Clark became Director of ent in training. A further eight will join adviser on the Pakistan Delegation at the Information and Public Affairs De- the Bank in the next few months, bring- meetings of the Commonwealth Prime partment. He joined the Bank from the ing the total serving the Bank Group to Ministers and Commonwealth Finance Overseas Development Institute, Lon- 106 from 37 countries as shown in the Ministers. He had also been Secretary- don, of which he was Director. Mr. Har- following table: General, Adviser and Alternate Dele- old N. Graves, Jr., who had served as Argentina .....2 Mexico .. 1.... gate of the Pakistan Delegation to the Director of Information since November Australia. 1 Netherlands . 5 United Nations General Assembly, Se- 1950, became Associate Director of the Austria .......... 3 New Zealand ..... 1 curity Council and UNCTAD. Before Development Services Department. Belgium ... 4 Nigeria .......... 3 Canada ......2 Norway ......2 becoming an Executive Director of the Mr. Lester Nurick was promoted to China . 1 Pakistan Bank, he was known to many staff mem- the position of Associate General Coun- Cuba . .1.... Philippines . 2 bers through his participation in the sel in April. He had served as Deputy France .. . 10 South Africa .1 Germany . - . 8 Spain.. ~3 Indus Waters negotiations. General Counsel in the Bank's Legal Ghana ...... 1 Sweden. 2 In November, Mr. Martin Lynch suc- Department since 1965. Guyana ...... 1 Switzerland . -4 India........10 Thailand..... 1 ceeded Mr. Robert Radford as Alternate The Program Evaluation and Control Iran. 1 Togo . .1 Director for the United Kingdom. On Department has been assigned respon- Ireland ..........1 Turkey. 1 April 1, Mr. Christopher Kahangi, from sibility for continuing work on planning Itsrael .6 R....epUblic1 rab Tanzania, became Alternate to Mr. S. Bank Group operations in addition to Jamaica ..........1 United Kingdom 9 Othello Coleman in place of his fellow- its present responsibility for budgetary Japan .........2 United States . 7 countryman, Mr. Iddi Simba. matters. It has been renamed the Pro- Kenya.1 West Indies. 1 Part Two A farmer clearing an irrigation ditch on his farm near Aligarh, the State of Uttar Pradesh, India. Funds from a $6 million International Development Association credit are being used to expand tubewell irrigation in this area. Part Two: Trends anid Ouitlook in Development Finance art Two of the Annual Report is de- marking a slowdown from the annual dustrialized countries that a general voted to a short outline of the chief rate of expansion of over 8% between system of non-reciprocal preferences trends in developing countries. While 1960 and 1966. The trade deceleration for developing countries' exports was major developments in regard to eco- in the industrialized countries had ad- bothdesirable and feasible;this marked nomic growth and external trade are verse effects on export earnings of de- a change in attitude on the part of briefly described, the main focus of this veloping countries. The overall flow of certain industrialized countries. The part of the Report is on the external development assistance continued to discussions during the Conference cen- financing aspects of development. fall short of accepted targets, as a result tered around four major questions: how Sales of external bonds of developing of either balance of payments deficits can development aid be increased; how countries and international develop- or budgetary problems in some of the can more stable and satisfactory in- ment institutions are discussed within major aid-providing countries. Prelimi- come be guaranteed to producers of the broader context of international nary estimates for the first half of 1968 primary products; how can the develop- capital markets. The Report this year indicate an increase in the growth rate ing countries improve the mobilization contains a special section on recent of GDP, particularly in the United of their domestic resources; and can experience and prospects of agricul- States and also in some European there be an acceptable scheme for ex- tural development and a brief discus- countries, which could lead to renewed tending preferences to exports of man- sion of problems arising in a number expansion in exports of developing ufactures and semi-manufactures from of developing countries as a result of countries. the developing countries? At the con- rapid growth in population. (Tables re- Provisional indicators for 1967 show clusion of the Conference these ques- ferred to in the text will be found in the that GDP of developing countries as a tions remained largely unanswered. Yet Statistical Annex, beginning page 48.) group increased at a faster rate than in some of the resolutions adopted may the two previous years, mainly reflect- eventually result in constructive action, ing a considerable recovery in the GDP growth of India, where agricultural pro- NOTE: Unless otherwise specified, the classification The world economy in 1967 was char- duction steeply increased in 1967. of countries is based on that used in the United Na- acterizd by aconsidrable lowdow Althogh thegain ws in prt theresulttions Statisticat Yearbook. The data do not include acterized by a considerable slowdown Although the gain was in part the result Albania, Bulgaria, Czechoslovakia, Eastern Germany, in overall growth combined with severe of favorable weather conditions, there Hungary. Pcland, Rumania, Mainland China. Mongo- strains in the balance of payments and are strong indications of a real advance lia, North Korea, North Viet-Nam, the Union of Soviet Socialist Republics and Cuba, for which data are international monetary system. This de- in agricultural production, due largely either not available or arc not comparable with data celertion n groth bean inmid-166 totechnlogicl innvatios whih are from other countries. The term "developing coun- celeration in growth began in mid-1966 to technological innovatins which are tries" inc udes a other countries of Asia except and continued during 1967 both in the discussed later, Growth in 1967 in other Japan; of Africa except South Africa; of Latin America Uriited States and in a number of Euro- developing regions seems generally to and the Caribbean area; and the Southern European countries of Cyprus, Greece, Malta, Portugal, Spain, pean countries, such as the Federal have continued at about the same aver- Turkey and Yugoslavia. Republic of Germany, France and the age rate as that of the 1960s as a whole. The developing countries" group, as defined above. United Kingdom. The aggregate real The slowdown in trade expansion, as covers about 1,720 million people or more than 70% Gross Domestic Product (GDP) of in- well as the basic stability in the level of the total population of the countries included in the data, Other -ountries covered by the data are referred dustrialized countries increased by of aid commitments, formed the back- to as 'deve oped" or 'industrialized" countries. It is about 2.5% in 1967, compared to an ground to the second session of to be noted that this classification does not coincide exactly with the Part I and Part iH division of mem- average of about 5% per annum from UNCTAD which took place in New Delhi bership in the lnterraticnal Developmnent Association 1960 to 1966. World trade increased by in early 1968. Even before the Confer- (see pages 89-90) and has no relevance as to the countries wnich are or are not currently considered approximately 5% at current prices, ence began, it was agreed by the in- for development finance fromn the Bank or IDA. especially the decision to continue ne- These overall figures conceal wide from 1.9% in the 1950s to 2.5% in the gotiations for a general non-discrimina- differences among regions as well as 1960s. Moreover, this was combined tory, non-reciprocal scheme of prefer- individual countries, as stated -in last with a slowing down of the aggregate ences for exports of manufactures from year's Report. On the whole, developing rate of economic growth, thus reduc- the developing countries. The Confer- countries in Southern Europe, the Mid- ing growth of per capita GDP to only ence decided to continue consideration dle East and East Asia, and to a lesser 0.5% per year. of Supplementary Financial Measures extent Latin America, have grown more In all regions of the world, manufac- in the machinery of UNCTAD (see page rapidly than the average of all develop- turing production has increased at a 23). A new aid target which would re- ing countries; growth in South Asia and relatively rapid pace over the past sev- quire each economically advanced Africa, which together accountformore eral years, while agricultural produc- country to provide annually to develop- than half the population in developing tion has grown much more slowly ing countries net financial resources of countries, has been at a slower rate. (Table 2). The slow growth of agricul- a minimum of 1% of Gross National Allowing for population increase, the tural production in the developing couwn- Product (rather than the 1% of national economic growth record of the develop- tries has had a significant impact on income as approved by the first session ing countries as a group has been far their total growth, as an estimated one- of UNCTAD in 1964) was also approved, less satisfactory. Since 1950 their rate of third of their GDP originates in this although no date was set for the populationgrowthhasbeennearlytwice sector. Because of the special impor- achievement of this target. If this as high as that of the industrialized tance of agriculture in developing coun- resolution is realized, the amount of countries(Table1),resultinginagrowth tries, this topic, together with some development assistance would be con- of GDP per capita for all developing aspects of the related problem of popu- siderably increased. countries of 2.3% per year, compared lation growth, is discussed separately to 3.2% in the industrialized countries. at the end of this chapter. Throughout the period Latin America has had afastrateofpopulationgrowth, Special factors such as weather condi- 2.9%, equal to two-thirds of the aggre- tions, military and political upheavals, gate GDP growth rate. In South Asia, Export earnings of developing coun- and severe balance of payments con- the annual population growth increased tries as a group increased in 1967 by straints can significantly affect annual about 3.5%, compared to an average growth rates of developing countries; growth of 6.5% during the period 1960- their growth record must therefore be -~1966 (Table 5). If exports of major pe- seen in longer term perspective. Since troleum producing countries and the 1950, the growth of world' aggregate developing countries of Southern Eu- GDP has averaged abo-ut 4.5% a year X rope are excluded, the increase in 1967 at constant prices, thus doubling the r amounted to only about $200 million, a total. Data for 56 developing countries, 44% , k fraction of 1%. This stagnation in ex- which account for about 90% of the X S port earnings was in part a result of aggregate GDP of the developing coun- the slow economic growth in industrial- tries, show an increase in GDP at the X - ized countries, which affected their im- rate of 4.7% per year from 1950 to 1966 X _. port demand and reduced the average (Table 1). Thus, between 1950 and 1966 - price level of primary products. De- the combined growth rate of develop- . veloping countries in all regions were ing countries, in percentage terms, has - affected by the slow growth of world kept pace with that of the industrial- E trade in 1967, although in varying de- ized countries. grees; South Asia and Latin America actually experienced a small absolute 'Excluding the countries of Eastern Europe, the reduction in export earnings. Rapid Soviet Union, Mainland China, Mongolia, North supply expansion in some commodi- Korea and North viet-Nam, for which data are either a ties contributed to the decline in aver- not available or are not comparable with data from other countries. rj,f age prices. The World Bank Primary Commodity Primary Commodity Price Index for Low and Medium Income Primary Producers Price Index for Low and Medium In- 0955-1957 = 100) Annal Averages come Producers, which during the 180 l_ 1960s has fluctuated within narrow margins, fell by 0.7O in 1967; if petro- leum prices are excluded, the decline 160 amounted to about 1.5% (see chart). Agriculture No n-fooId The overall decline, although small, is notable since it happened in a year of in- 140 ternational conflicts (Viet-Nam and the Middle East) and despite the closure of 120 otal the Suez Canal. Although there were a ./ few. price rises during 1967-in cotton, Fo rice, sugar and tea -the prices of _ most commodities decreased. Copper prices on the London market fell by I about 25%, a partial downward adjust- 80 t ment from the abnormal record high level of the previous year. The gradual decline in rubber prices over the past '50 '52 '54 '56 '58 '60 '62 '64 '66 '68 several years sharpened, with prices *Including petro eim. f From 1962 adiusted to reflect producers' price quotations of copper. declining by 16%. The steel recession in the United States and Europe con- tinued to force down iron ore prices, 1968 level in the near future. In the granted in the Kennedy Round of the despite an apparent temporary halt in longer run, however, price stability will General Agreement on Tariffs and the growth of export volume. Other im- depend on the degree to which coordi- Trade (GATT) suggested that the tariff portant commodities which experienced nation of supply is achieved among ex- reductions negotiated in 1967 chiefly price declines in 1967 included coffee, porting countries, unless demand ac- benefited the commodities traded tin, jute, jute textiles, wool, sisal, lead celerates significantly. among industrialized countries. Reduc- and fishmeal. As stated in Part One (page 22), in tions granted by industrialized coun- Prices of some commodities may rise response to resolutions adopted at the tries on the manufactured exports of as world economic activity and trade 1967 Annual Meetings of the Boards of developing countries were considerably grow at a faster rate than in 1967. But Governors, the staffs of the Bank and smaller than the concessions made to the continuation of the general erosion the IMF have been preparing a draft other industrialized countries. The pro- of coffee prices, and to a lesser extent study concerning the problem of the spective expansion of manufactured tin, is a matter of concern, especially stabilization of prices o, primary prod- exports from developing to industrial- as coffee and tin are two commodities ucts, possible solutions to the problem ized countries directly attributed to the for which international agreements de- and the economic feasibility of these Kennedy Round tariff reductions has signed to stabilize prices have been in solutions. This draft will be considered been estimated at $200 millon2 per effect for some time. The successful re- by the Executive Directors of the Bank year, or about 16% of present manufac- newal of the International Coffee Agree- and the IMF prior to the submission of tured exports of developing countries. ment in 1968 provides hope that price the study to the Boards of Governors. Even this small increase is not likely to stability for coffee, a commodity ac- The expansion of manufactured ex- materialize, and may even be reduced counting for about one-half of the ports of developing countries has not by almost one-half, if quotas under the export earnings of eight developing yet benefited from any significant re- long-term Cotton Textiles Arrangement countries, can be maintained. The Inter- duction in tariffs or in quantitative re- as well as quantitative restrictions on national Tin Agreement is expected to strictions on imports by industrialized be able to prevent further significant countries. A World Bank staff study of JThis estirnate excludes exports from those Southern European countries included in the list of develop- deterioration in prices from the mid- the effects of the tariff concessions iag countr'ies given in the Note on page 31. some other commodities are not respect, behaved like "minor" exports The growth of developing countries' liberalized. which expanded considerably faster imports during 1967 was affected by The export experience of a small than "major" exports. A distinction is the slowdown in their export earnings. number of countries during the 1960s also made in the study between coun- Imports into developing countries as a conflicts with the general export per- tries with outward orientation in their group increased at an annual rate of formance of the developing countries economicpolicies, asagainstthosewith 7% between 1961 and 1966, but by only as a group. In East Asia, exports of inward orientation emphasizing produc- 3% in 1967. If Southern Europe and the goods from the Republic of China, tion for domestic markets. The majority oil producing countries are excluded, Hong Kong and Korea increased be- of countries with small domestic mar- the import growth was 6% from 1961 tween 1960 and 1967 at annual average kets and small shares in world exports to 1966 and 3% in 1967. rates of 21%, 12% and 38% respec- of a particular commodity have pursued Although the foreign exchange re- tively. In the Mediterranean area, policiesthatare predominantly outward serves of the developing countries in- Greece, Israel, Yugoslavia, Portugal, oriented. These countries have man- creased by approximately $800 million and Spain together expanded exports aged to maintain competitive price in 1967 and by another $735 million in of merchandise byalmost12% per year levels through fiscal, monetary and the first quarter of 1968, only a few between 1960 and 1966, and even in exchange rate policies, and have countries benefited from the increase. 1967 managed to increase them by 9%. achieved a considerable increase in ex- Up to April 1968, the combined increase These eight countries have two things ports. In contrast, countries with rela- in the reserves of Argentina (over $470 in common: their merchandise exports tively large domestic markets and million),4 of the major oil exporters consist of a relatively high percentage important external trade positions have ($645 million), of Portugal, Korea, the of manufactures and they have pursued tended to pursue inward oriented poli- Republic of China, Israel, Jordan and policies explicitly designed to expand cies. For both "minor" and "major" ex- Thailand amounted to almost $1,550 exports. ports, the greatest improvement was million, while virtually all other develop- A World Bank staff study3 on the ex- achieved by countries which had small port experience of 29 developing coun- external market positions and a policy 'Due to special factors, ircluding devaluation fol- lowed by a large capital inflow, as well as short- tries suggests that variations in export of outward orientation. term borrowing. growth are due to a combination of differences in economic policies and in trade positions of countries. The study makes a distinction between exports of "major" commodities, which are mostly primary commodities traded on well- organized international markets, and "mreinor" exports, which comprise a large group of manufactured and agri- cultural products traded on a relatively smaller scale. Changes in exports over the period studied, 1950-63, appeared to be associated with countries' shares in the markets of major commodities in the initial years; countries with small shares in the markets tended to fare better than those with large shares. Exports which comprised a small share of total exports tended to experience relatively favorable growth and, in this 3Barend A. de Vries, The Export Experience of De- veloping Countries, World Bank Staff Occasional Z~ Paper No. 3. Loading a ship with an export cargo at the Port of Dakar, Senegal. A four-year development program for this important West Africani port is beinig assisted by a World Bank loan. ing countries experienced a further de- capital inflow, the level of total and of proper incentives or to unfavorable cline in their reserves. The reserves of public savings, and the rate of eco- changes in external market conditions; many developing countries remained at nomic return on investments. Thus, an or an insufficient volume of aid on ap- or reached a precariously low level, analysis of a debt servicing problem is propriate terms. In some countries, making these countries more vulner- best done in the context of an overall there has been a combination of the able to declines in export earnings and evaluation of an individual country's above factors. Unsatisfactory manage- reductions in net capital inflows. economic and financial performance. ment of overall economic and financial Since no two countries are alike, it is affairs has in certain cases aggravated not easy to classify groups of countries debt servicing problems. with respect to their debt servicing In a number of countries, debt serv- publicly guaranteed external debt of problems. Nevertheless, a few typical icing problems have been chiefly 92 developing countries increase d by cases will be briefly discussed below. caused by the assumption in past years 92 developing countries increased by Many developing countries have not of credits on relatively onerous terms, about $400 million in 1966 and by about been seriously troubled by an increase indicating in some instances unsatis- $185 million in 1967 (Table 6). These in debt service payments. For some factory balance of payments policies. totals conceal considerable variations developing countries, debt service pay- This, for example, was the case in in-the growth of debt service payments ments are relatively low in relation to Argentina, where most imports of cap- from country to country, but some gen- exports.This has been the case for Cey- ital goods have been financed by sup- eral trends can be seen. In percentage lon, Ethiopia, Jamaica, Kenya, Malay- pliers' credits, often with short maturi- terms, the most rapid increase in debt sia, the Sudan, Tanzania, Thailand and ties and carrying relatively high interest service payments during 1966 and 1967 Uganda (Table 7). Some of these coun- rates. Heavy recourse to such credits, occurred in Africa, East Asia and South tries are in early stages of development together with the fact that Argentina Asia, as opposed to a much slower in- and have not yet assumed debt serv- has obtained relatively few long-term crease in Latin America, the Middle ice payments on a large scale. Others loans from external sources, has meant East and Southern Europe.Thesetrends have received external assistance that the terms on which she has bor- are in contrast to the years 1964 and largely in the form of grants rather rowed abroad have been among the 1965 when the major increase in service than loans. In several developing coun- hardest for developing countries. For payments took place in Latin America tries, rapid export growth has prevented example, the average rate of interest on and Southern Europe. The slowdown in a sharp increase in the debt service external loans incurred by the public the rate of increase of debt service pay- ratio, despite a rapid increase in debt sector in Argentina in 1966 was 6.14% ments in the latter regions was partly service payments. Some of these coun- and the average amortization period due to rescheduling in a number of tries (including Iran and Venezuela, as 5.8 years (Table 11). As a result, about large debtor countries, Argentina, Bra- well as Zambia and Chile in the last two 7%o h onr' xenlpbi zil, Chile and Turkey. years) have benefited from favorable An extremely important factor influ- yearkes) frptoemrmirasCr-debt outstanding at the beginning of encing a country's ability to service tain other countries (includin1967 was scheduled for repayment external debt is its export performance. public of China, Koreat Israel and within five years. Between 1961 and The ratio between public debt service Mexico) have pursued policies condu 1967 Argentina's merchandise exports payments and exports of goods and cive to rapid export growth. However expanded at an average 7% a year, but services, referred to as the debt service in a expof cowth. However a considerable part of the increase in ratio, is shown in Table 7 for 54 devel- some of the largest in terms of GDP or exchange earnings wasabsorbed bythe oping countries.5 Several other factors, population debt servicing has become rise in debt service payments. Public however, have a bearing on a country's a major problem, affecting overall eco- debt service payments reached nearly ability to service debt, including its pro- nomic and financial management. 28% of exports of goods and services pensity to import and potential for re- Debt servicing difficulties have arisen in 1967. To alleviate her heavy debt ducing imports at times of balance of mainly because of the following factors: service burden, Argentina had recourse payments pressure, the amount of gross excessive use of short-term debt such to debt relief from her major creditor as suppliers' credits; inadequate in- countries on several occasions, most 5These ratios are based on data reported to the World Bank. See Notes to Tables 6-13, page 64. crease in exports due either to a lack recently in 1965. More prudent debt management has been an important ob- Growth of Service Payments on External Public Debt of Developing Countries 1963-67 jective of the economic program intro- Millions of US Do lars duced early in 1967. Under stand-by arrangements with the IMF, limits have 2100 been imposed on the amount outstand- _ . ing of suppliers' credits to the public _ . - sector with maturities of less than eight . Latin America 1,800 years. In addition, the authorities have _ . _ undertaken to monitor carefully the ,,500 growth of private obligations and to take action, if necessary, to prevent any 1,200 unduly rapid rise. Substantial sur- pluses in the current account of the bal- 6&2 ance of payments have made possible South Asia -Southern Europe a reduction in the amount of debt out- Ar____i_c _____- -- -E__ _ica 300 standing over the past several years. ddleEast -- Argentina should be able to reduce her East Asia outstanding indebtedness substantially 1963 1964 1965 1966 1967' in the coming years if policies neces- For geographical coverage, see note to Table 6, page 52 sary to promote rapid expansion of ex- ports are pursued, and if her products ' Projected are not hampered by restrictions in im- porting countries. To reduce the debt service burden, Argentina will also have 28% in 1967, adding to the severe con- cies to expand exports. It also depends to seek loans on more favorable terms straints on the balance of payments. on an increase in the volume of aid than in the past, particularly by shifting During the past year the debt servicing given on concessionary terms and on as large a portion of public sector bor- problem has been a major concern of an improvement in external market con- rowing as possible from suppliers' the India Consortium, as stated in Part ditions for India's exports. credits and commercial bank loans to One (page 19). In its role as Chairman In the case of Pakistan, where the loans from international development of the Consortium, the Bank recom- rate of economic growth has been rela- institutions and other sources of long- mended an increase in the volume of tively fast, insufficiency of concession- term finance. aid, softening of the terms of aid and ary aid is tending to produce debt The debt servicing problem of India measures to expand exports. In May servicing difficulties. Pakistan's exports is among other factors the result of a 1968, the Consortium reached agree- grew at the comparatively rapid rate of combination of slow export growth and ment in principle to provide debt relief 6% between 1960 and 1967. However, the relatively hard terms of some past of about $100 million (or roughly 25%) debt service payments rose sharply by aid.Between1960and19671ndia'smer- of debt service payments due to Con- 50% from 1965 to 1967, reaching ap- chandise exports increased at an aver- sortium members for each of the three proximately 16% of exports of goods age annual rate of merely 2.8%. Only Indian fiscal years beginning April 1, and services in 1967. The increase in during the last ten years has the coun- 1968, and to take action on debt relief in debt service payments is due to the try received large amounts of aid on the first of the three years. (This agree- maturing of relatively short-term debt concessionary terms. Moreover, the ment is subject to parliamentary ap- assumed in the early 1960s. Although volume of such aid, while large in abso- proval as far as some creditor countries debt servicing has not yet imposed too lute amounts, has been too small in are concerned.) Further debt relief ac- heavy a burden on Pakistan's balance relation to her capital requirements. tion may be necessary in the future; of payments or on her budget, future Consequently, India's debt service pay- however, the long-term solution of In- prospects are disconcerting even in the ments on foreign debt, including sup- dia's debt servicing problem depends short term. Because of a hardening of pliers' credits, rose from about 15% of basically upon the effectiveness of over- average terms of loans in the past few merchandise exports in 1961 to about all economic policies, including poli- years (Table 11), the debt service ratio is projected to increase by 1970 to the public sector or guaranteed by a around 20%, merely as a result of ex- public authority in at least one of the isting debt. Projecting a continuing flow two years shown in Tables 8 and 9. In * of gross aid at the same amount of $650 12 of the 34 countries, public debt serv- million a year on the same average ice payments exceeded total public terms as the last two years and an loan disbursements. In most cases, debt average export expansion of 7% a year, service payments on loans from private the debt service ratio would increase sources, chiefly suppliers' credits, were by 1975 to 25%. Maintenance of the equivalent to a considerable part of the debt service on a reasonable level gross public capital inflow. therefore requires continuing efforts to If capital continues to be provided to raise exports at a rapid rate, as well as the developing countries on the present a softening of average aid terms. average terms, debt servicing difficul- In a few extreme cases, such as ties may seriously affect many develop- Ghana and Indonesia, severe debt serv- ing countries, and may also pose icing difficulties have arisen as a result additional problems for aid-providing of general mismanagement of the econ- countries. Many developing countries omy in earlier years, reflected in ineffi- will find it necessary to allocate an in- cient investment, lack of incentives to creasing share of export earnings to promote exports and unsound fiscal service debt. This problem could be- and monetary policies. In both these come even more acute if the bulk of cases debt service payments have been gross bilateral aid continues to be tied rescheduled, and a general overhaul of to projects or to specified commodity economic and financial policies has purchases, while external debt service been set in train. payments are made in free foreign ex- A country's current ability to service change. At the same time, the aid-pro- external debt is of course also affected viding countries will have to increase by the amount of her current gross capi- gross disbursements merely to main- tal inflow. There are wide differences tain a constant net flow of financial between countries with respect to the resources to developing countries after size of public debt service payments deduction of amortization and interest compared to the gross inflow of exter- payments. For example, the Develop- nal capital. Tables 8 and 9 give data for ment Assistance Committee (DAC) of service payments on public debt com- OECD made an illustrative estimate > pared to gross loans and grants re- that, merely to maintain the flow of pub- ceived by developing countries for lic capital to developing countries net which reasonably reliable information of amortization and interest at the same is available for the years 1965 and level and on the same average terms as 1966.6 In 34 countries, public debt serv- in 1965, the gross official capital flow ice payments equalled more than one- from DAC membercountrieswould have half of the external loans received by to be increased from $5,750 million in 1965 to $7,820 million in 1975 and to ;BecaLse of lack of detailed data or incomparability $10,180 million in 19857. These calcula- with cata from other countries, several major debtor countries, i.e, Brazil, Turkey, Israel and Indonesia, tions demonstrate the close relation- have not been included in the group of countries ship between the terms of development shown in Tables a and 9. Nevertheless, informa- tion on disbursements and debt service payments finance provided at present and the for these countries suggests that the relationship between disbursements and debt service payments is fairly represestative for the aggregate of de- ,Development Assistance Efforts and Policies, 1967 veloping countries. Review. September 1967, Table V.5. Terminating transmission lines at the switchyard of the Furnas hydroelectric plant on the Rio Grande, Brazil, Power from this Bank-assisted plant goes to the central-southern area where industrial and agricultural activity is concentrated. gross amounts required in the future. method, which is widely used in finan- of 10% might be used as a rough and The harder the terms of present aid, the cial and economic calculations, has arbitrary approximation. Future public higherthefuturegrossamountrequired also been applied to development as- debt repayments as reported to the merely to maintain a constant net sistance.8 To the extent that the present Bank on a loan-to-loan basis are then amount. Since legislative authorization worth of future repayments is lower discounted at these rates to estimate is generally required for gross rather than the value of loans received, the their present worth. For an estimate of than for net appropriations, a steep in- difference represents a concessionary the concessionary element in total de- crease in gross aid requirements may element, which can be expressed either velopment finance (rather than in loans also sharply increase the existing dif- as an amount or as a percentage of alone), the full amount of grants and ficulties in raising aid levels from these loans. Capital transfers in the grant-like contributions (including food budgetary sources. In present circum- form of grants have by definition a con- aid repayable in domestic currencies) stances, it is indeed doubtful that such cessionary element of 100%. is added. The concessionary element a steep increase in the volume of gross A major factor affecting the size of for recipients as a percentage of the aid would seem a realistic prospect. this concessionary element is the dis- public capital inflow calculated in this Both from the point of view of creditors count rate applied to reduce future debt manner is shown for the years 1965 and and debtors, the prospects emphasize repayment to its present worth. The 1966 in Tables 10 and 11. the importance of softening the terms higher the discount rate, the smaller is The quantitative results of such cal- of development assistance, as well as the present worth of future debt service culations must be interpreted with of taking measures to improve the over- payments and the greater the conces- caution. Even if the results properly all economic performance and in par- sionary element in a given loan. Con- estimate the present worth of future ticular the export performance of devel- versely, the lower the discount rate, the debt service, there are other important oping countries. higher the present worth of future debt elements having a great influence on repayments and the smaller the con- actual terms of loans or grants. For ex- cessionary element in a given loan. ample, loans that are "tied" to pur- The choice of an appropriate dis- chases in donor countries or to the World Bank data drawn from reports by count rate for present worth calcula- purchase of certain commodities may debtor countries on a loan-to-loan tions raises major questions. If the pur- require the recipient to pay higher basis show that average terms of loans pose is to measure the economic cost prices than in the lowest priced mar- to developing countries became some- of development assistance to donors, kets. Similarly, aid in the form of food what more concessionary in 1966 the discount rate should express the or other commodities and services may (Tables 10 and 11. Bank data for 1967 value of alternative use for capital in be shown at values higher than their are not yet available; 1967 data re- donor countries. From the point of view real market value. Those factors are of ported by DAC indicate a considerable of the recipients' benefits, one appro- particular importance in cases in which hardening of average aid terms during priate discount rate might be the inter- debt must be repaid in convertible for- the year). At the same time, however, est rate prevailing in external capital eign currency. The overvaluation of the amount of grants to those countries markets for bonds of developing coun- prices involved in "tied" aid reduces was considerably reduced. As a result, tries, although in practice only a small the concessionary element to the re- the terms of overall development assist- number of developing countries have cipient, and in certain extreme cases ance softened only slightly in 1966. borrowed in external markets in rela- may even exceed the concessionary The average terms of loans are ex- tively small amounts. A discount rate of element, particularly if financed pressed in three elements: interest 8% might be used as a rough indica- through suppliers'credits orother loans rates, amortization and grace periods. tion of the cost of such borrowings. at relatively high interest rates. These can also be summarized in one Another appropriate discount rate is If the latter factor is disregarded, the factor, measuring the concessionary the marginal economic rate of return illustrations of the concessionary ele- element (or grant element) in loans. for external capital in developing coun- ment show an interesting pattern. There Future repayments of debts can be cal- tries, which indicates the benefit of are large differences in the conces- culated at their present worth, using an such capital to recipients. Although sionary element between developing appropriate discount rate to compare this is most difficult to measure, a rate countries, ranging in 1966 (at 10% dis- 9 future values with present ones. This aSee Notes to Tables 10-13, page 64. count rate) from as low as 15% to as high as 100% (Table 11). For a number Development Association to developing cial aid from Japan amounted to $391 of countries, the concessionary element countries and multilateral institutions, million compared with $285 million in varied considerably between 1965 and net of amortization, is estimated at 1966, due mainly to larger reparation 1966. Variations in the share of the con- about $7,040 million in 1967 (Table 14), payments to the Philippines and grants cessionary element by recipient coun- according to preliminary information. and loans to Indonesia, the Republic of tries reflect differences in the amount This estimate shows an increase of China and Korea. The amount of official and terms of development assistance about $475 million over 1966 and about aid from Australia, Canada, Denmark, received from various sources, which $800 million over 1965. It is not yet pos- Italy, Kuwait, the Netherlands and have varied greatly as shown in Tables sible to ascertain whether the increase Sweden either continued to grow or 12 and 13. To a certain extent, differ- indicates a trend of moderate growth maintain the considerably higher level ences in the concessionary element in official assistance commitments, or achieved in 1966. of aid received by developing countries whether it is merely the result of a spe- There was a slight increase in official were correlated with variations in their cial rise in disbursements due to the aid of the United States in 1967, with income and balance of payments pros- accumulation of commitments in previ- some growth in both disbursements pects. For a number of recipient coun- ous years. and commitments. Official assistance tries, however, little correlation has Several donors reported an increase of the United Kingdom was reduced existed between the concessionary ele- in official assistance in 1967. The flow slightly as a result of the Government's ment and the country's ability to service of official aid from France rose during decision to lower the ceiling on aid dis- external debt, largely due to grants pro- the year from $745 million in 1966 to bursements in the UK financial year vided by donor countries to some de- $831 million, a result of the expressed 1967/68 due to balance of payments veloping countries with whom they intention of the French Government to constraints and budgetary difficulties. have special relationships. reverse the decline in the level of assist- The official capital receipts by the ance in 1965 and 1966. Official assist- developing countries, net of amortiza- ance from Germany increased from tion, from bilateral and multilateral The flow of official capital from the eco- $490 million to $549 million, apparently sources increased in 1967 by about nomically more advanced (Part I) mem- chiefly because of a special accumula- $230 million to approximately $6,200 ber countries of the International tion of disbursements. The flow of offi- million. In addition to an increase in receipts of bilateral aid from IDA Part I countries, disbursements from multi- lateral institutions continued a rising -F- W . : trend and amounted to about $1,000 Fltow,fNtOtiGlA From IDA Part I Countries to Developing Countries and Multiaterat lstto . million net. Bilateral aid disbursements In miwllons of US Dollars - . - i - . . '-in 1967 from the Soviet Union and Eastern Europe excluding Yugoslavia M-tlulateras : -- . . . 7,000 are estimated, as in previous years, at about $350 million. The flow of private capital from IDA / '6500 Part I countries to developing coun- tries and multilateral institutions, net of amortization, is tentatively estimated at -6c00 some $4,270 million on the basis of pre- liminary figures, indicating a recovery from a lower amount in 1966 to above ..soo -;-the level which prevailed in 1965. Bilat- eral private capital flows have remained at a roughly constant level during the g9@ - -~ tZ 82 . ' 16 3 t' i E 1C % ( % lw last three years. However, the sales of bonds net of redemptions by multilater- Bas anedooTaWe14>r,a: .t - ESI ; E . . al institutions in capital markets (other than to governments and official insti- countries are exempt from the interest of relatively small issues by Australia, tutions), which are recorded as private equalization tax, only Israel managed the East African Community, Iceland, capital flows, increased between 1966 to borrow on a large scale in the US Jamaica, Malaysia and New Zealand; and 1967. The private capital flow from market during the period, while Argen- in the case of Australia, the new issue the United States to developing coun- tina, Colombia, Mexico, Panama, Peru, replaced bonds that had matured tries rose after falling in 1966. Private the Philippines,Thailand andVenezuela shortly before. capital flows from Japan showed a borrowed in relatively small amounts. In addition to the long-term bonds sharp increase, following the inclusion In the Euro-bond market, sales of publicly sold in capital markets, the in the data of export credits for ships new bonds by public institutions and World Bank continued to sell short-term sold to Greece, Liberia and Panama. corporations of industrialized countries dollar bonds and notes with two to The private capital outflow from Ger- increased in 1967 and in the first half five-year maturities to central banks many more than doubled in 1967, of 1968. US corporations stepped up and official institutions outside the mainly reflecting an increase in export their borrowing, with a further sharp United States. The World Bank also credits. The flow of private capital to increase in the first half of 1968 to the sold in 1968 a $15 million bond issue developing countries from Italy, which equivalent of $1,315 million, mainly in of 26 years to the Saudi Arabian Mone- sharply increased in 1966, due to an the form of convertible bonds. France tary Agency. Details of the Bank's bor- exceptionally large rise of export cred- for the first time became a borrower in rowings are given on pages 75-77. its, declined sharply. the market on a considerable scale. The number of developing countries Sales of Austrian bonds increased managing to borrow in international sharply in 1967 and again in the first capital markets is still very small, half of 1968. A significant increase though it increased somewhat in 1967 Sales of new bonds in te inter atinal took place in sales of new bonds by and in the first half of 1968. Mexico capital markets have increased sharply, Scandinavian countries (Denmark, Fin- and Portugal are traditional borrowers reaching record levels of about $4,410 land and Norway); Australian, New in international markets, and in the last milion in 1967 and about $3,500 mil- Zealand and South African bond sales two years both were able to increase lion in the first half of 1968 (Table 15) also increased. Among developing sales of bonds in the Euro-bond market. An increase has occurred in sales of countries, Argentina, Israel, Mexico, A few other developing countries in rel- foreign bonds in the NEwro Yord market ofPeru, Portugal and Spain managed to atively strong financial positions, such andurintsaes denominatheEu nd mnacrrket o sell bonds on a considerable scale. The as the Philippines, managed to place stheuritie denonatohed iounta crreny World Bank sold new long-term bonds bonds privately in foreign markets. Other than that of the country where sold. in 1967 in Sweden and Switzerland Certain African countries, including The expansion in the New York mar- totaling the equivalent of $28.5 million, Gabon and the Ivory Coast, have sold ket in 1967 was due mainly to an in- and in the first half of 1968 in Germany, bonds in France guaranteed by official crease in sales of new bonds by the the Netherlands and Switzerland total- institutions of the French Government. World Bank and the Inter-American ing $58.5 million. Sales of new bonds The Ivory Coast borrowed $16 million in Development Bank. The Worid Bank by the IDB in the European market de- the Euro-bond market in the first half of floated two bond issues totaling $400 clined in 1967; one issue was placed, 1968. These loans were made on the million and the IDB two issues totaling in Belgium, totaling the equivalent of credit of the Ivorean Government alone $110 million. Because of constraints $6 million. The European Invest- and mark the first loans of this kind to a due to the US balance of payments ment Bank, which makes development newly independent African country. deficit and the interest equalization tax, loans in certain European and African Argentina made a private placement in no new bonds were placed in New York countries, continued to be an important the United States of five-year bonds during 1967 and the first half of 1968 by borrower. totaling $25 million in the first half of governments or corporations of other Owing to the balance of payments 1968, the first bond issue sold by industrialized countries, with the ex- difficulties of the United Kingdom, the Argentina in the US market during the ception of Canada and to a small extent London sterling market continued to be last 30 years. A number of private com- of Japan. Although most developing almost totally closed to new interna- panies also borrowed in external mar- 9The data for the first half of 1968 are preliminary. tional bond issues, with the exception kets-electric companies in Peru and the Philippines, construction companies points higher than bonds issued by 5.95% in September 1967 and again to in Colombia and Venezuela, and manu- industrialized countries and internation- 6.54% in March 1968. In European mar- facturing companies in Portugal and al development institutions. kets (with the exception of Switzer- Thailand. Most loans raised by devel- The high level of yields on foreign land), yields were higher than in the oping countries during the period under bonds which prevailed in 1966 was gen- United States. The yield on new World review were for either general budget- erally maintained during 1967 with Bank bonds sold in Sweden in October ary purposes or for investments sche- minor fluctuations, and even increased 1967 was 6.0%, while that on new duled in development plans (Malaysia, in the first half of 1968. In the United bonds sold in Germany in June 1968 Mexico, Portugal). In some cases they States, the yield on new Canadian was 6.91%. In January 1968 the World were related to specific investments bonds increased from 5.63% in March Bank placed an issue in Canada with (electric power in Mexico and highways 1967 to 7.63% in May 1968 (Table a yield of 7.22%, the highest ever on in Spain). Generally, yields on new 16). The yields on new World Bank new World Bank bonds. The yields on bonds issued by developing countries bonds placed in the United States in- issues by developing countries varied in 1967 were one to two percentage creased from 5.35% in April 1967 to somewhat, reaching 8.48% for bonds A student at the Colle~ge Moyen et Secondaire Medjez-al-Bab, Tunisia. Two International Development Association credits amounting to $18 mill ion are helping to build new schools and improve the educational facilities in Tunisia. sold by Jamaica in the United Kingdom the maximum yields of the traditional grain crop in India and the record in January 1968, and 8.16% on new varieties. Combined with favorable wheat crop in Pakistan can be attrib- Mexican bonds sold in various Euro- prices, good weather and increased uted at least in part to these high-yield- pean markets in March 1968. fertilizer supplies, food grain output in ing varieties. More importantly, the these countries has risen sharply over breakthrough in rice and wheat varie- the levels of the preceding two years. ties and the promising developments in The pessimistic projections of a food maize, millets and sorghums are al- Between 1957 and 1967, agricultural crisis are beginning to be challenged ready changing government attitudes output in the developing countries of by a school of opinion which believes toward agricultural development. Deci- Africa,Asiaand LatinAmerica increased that an "agricultural revolution" in Asia sion makers are beginning to believe by only 3.2% per year, as compared to may be forthcoming. that resources provided to agriculture a population growth of 2.4% per year, Traditional varieties of rice and wheat can have a high pay-off and agriculture resulting in per capita growth in agri- grown in much of Southeast Asia are is being given high priority in overall cultural output of about 0.7% per year suited to natural conditions of low fer- development. (Table 3). Food output has probably tility and uncertain rainfall and are re- grown at a somewhat slower rate. With sistant to local pests and diseases. In The Background per capita incomes increasing at a rate comparison with temperate zone varie- Recent achievements must be seen in of nearly 2% per year and an income ties, however, they have shown limited the broad context of the fundamental elasticity of demand for food estimated response to conditions of high fertility problems of agricultural development. at 0.6-0.7, demand for food (other than and adequate water supply. On the Some major lessons of experience in beverages) increased at a rate of 1.2% other hand, traditional temperate varie- the past are briefly discussed below. to 1.4% per year per capita, and over- ties have performed poorly under tropi- The sheer diversity and complexity all demand rose by about 4% a year. cal and subtropical conditions, showing of the factors upon which agricultural The gap between supply and demand a tendency to mature too rapidly and growth depends make development in caused an increase in food prices and to produce low yields. this sector particularly difficult. In the had to be filled by a sharp rise in the The picture has been greatlychanged past, progress appears to have oc- food imports of developing countries, by the introduction in the last few years curred in spurts as new elements have The situation has been particularly of new varieties. Mexican dwarf varie- been introduced which overcame spe- acute in Asia where per capita agricul- ties of wheat developed by the Rocke- cific obstacles to further growth. In ad- tural output has barely increased, re- feller Foundation were first released to dition to the introduction of new plant sulting in the need for large-scale food Asian farmers in 1965. The IR 8 variety or animal types into favorable environ- imports into a region which was for- of rice developed at the International ments, factors which have played a role merly a net exporter. Rice Research Institute (IRRI) in the in the modernization and growth of Philippines was first released in 1966. agriculture include the development of New High-Yielding Varieties By 1967/68 it was estimated that the chemical fertilizers, pesticides and her- In spite of this discouraging record, the new varieties had been planted in 15% bicides, the development of new types prospects for developing countries' ag- of the wheat acreage in India and Pak- of implements and farm machinery, riculture now appear to be a great deal istan and about 6% of the rice acreage construction of transportation routes better than could have been imagined in India and the Philippines. Good opening up new markets, investments two years ago. This new situation is progress is also reported in introducing opening up new land through irrigation, the result of the successes recently high-yielding varieties in Afghanistan, drainage and flood control and use of achieved with large-scale plantings of Ceylon, Indonesia, Malaysia and newformsofmanagementorenterprise new high-yielding varieties of food Turkey. Acreage planted with the new such as plantations and cooperatives. grains. Reports from India, Pakistan varieties is expected to double in The time lag between introduction and and the Philippines show a rapid ex- 1968/69. The impact to date on over- acceptance of these new factors has pansion in acreage planted to new high- all wheat and rice output has been sometimes been considerable. There yielding varieties of wheat and rice dur- modest, and it is difficult to separate are a number of examples of rapid ex- ing the past year. Yield potentials of the effects of weather and higher pansion of newly introduced crops in these new varieties are double or triple prices. Nevertheless, the record food relatively short periods of time-for ex- be necessary to assure a continuous Agricultual ti D ping Countries flow of technology to meet problems as ;957-- 5f; 100they arise, and to extend benefits to a .1t30, - -bA ,<,,<,,_,T, , ; ;_9,, , ; , :, -' , ', , ' wider range of crops under different conditions; substantial investment in better water control and more adequate 120 ~~~~~~~~~~~~~~~~~~~supplies of inputs will be required; and government policies will have to be geared to providing farmers with ade- quate incentives. 110 ~~~~~~~~~~~~~~~~~~Many of the problems of agriculture may be attributed to the wide gap in ._____ > ffi+X : w~- - -. :: -.-: _ __. =- - . . understanding between policy makers .:_''.a< t-,<',=,t, i.2.S' '. Z:'' S :'.J '' ,'> r ., >100 ,r-- C~S. ' ;~~.< < 'and farmers. Policy makers have all too often relied on simple solutions sup- posedly geared to the mentality of the -- - t,-,rl ai | ?.- ;o; S <,>~3 .~;k'' 0c'j'' ;~peasant and administered by a mass of )195- 196Q. 1- 5 1,9s& 10i 05-- - 1966 . poorly trained technicians and adminis- Base ong - ; a s- trators. Too often slogans and exhorta- tion have been substituted for real incentives. Policy objectives have given ample, of groundnuts in Burma at the duction decisions on the basis of his lip service to the peasantry, but have in beginning of the century, rubber in individual resources and objectives. practice favored the more vocal urban Southeast Asia, coffee in Africa, and How he acts will be conditioned not and industrial groups. Even where sub- more recently of corn production in only by the technical knowledge he stantial resources have been devoted Northern Thailand and wheat and cot- has, but also by the socio-economic to agriculture, the results have often ton production in Mexico. On the other environment he faces-price policies, been vitiated by a lack of understand- hand, there have been many notable availability of inputs, services, markets, ing of what stimulates agricultural failures, such as the groundnut scheme tenure conditions, taxes or subsidies. growth. In some developing countries in Tanganyika, the poultry scheme in These in turn depend on decisions on the state of land ownership, inefficient The Gambia, and poorly planned irriga- the part of other farmers, entrepreneurs division of land and the shortage of tion projects in various regions. in other sectors, government agencies, credit on commercially acceptable The problems of agricultural de- consumers, etc. terms constitute serious obstacles to velopment vary considerably between In short, agricultural development the introduction of technological inno- countries, depending on differences in depends on a large number of interact- vation and to raising of productivity. resources, historical and cultural back- ing factors, both economic and non- 9 P ground and stage of development. So- economic. These factors vary from The result has frequently been a lag lutions which work in one country do place to place and change with time. in agricultural output, which has given not necessarily work in another. In fact, Solutions which depend on any sin- rise to food shortages and inflation. without careful adaptation to local con- gle factor or set of factors are rarely These have often led to price and dis- ditions the risk of failure is high. successful in bringing about a self- tribution controls or to concessionary Moreover, the dependence of agricul- sustaining process of agricultural de- imports of foodstuffs, both of which tural production on biological cycles, velopment. Each solution brings forth have in turn had the effect of depressing the importance of weather and physical a new set of problems which must be farm incomes. At the same time, pro- factors such as soil and topography, solved. The new high-yielding varieties tective policies for infant industries and the uneven quality of labor and may have only a limited impact unless have resulted in high prices for farm management make the problems of a number of measures are taken to inputs and consumer goods. In some each farm unique. In most cases each supplement their introduction. For ex- countries, moreover, overvalued ex- farmer must make his plans and pro- ample, intensive research efforts will change rates have acted as a particular disincentive for exports of agricultural increase of one-third in output from tudes. With reasonable weather and commodities. fertilizer application (about the maxi- using suitable inputs the farmer can One principal lesson to be learned mum with traditional varieties) often now expect to double or triple his grain from the postwar record of agriculture cannot be distinguished from year-to- yields per crop, as compared to in- is that, given adequate incentives, the year changes resulting from weather, creases of the order of one-third with farmer will respond. To be widely ac- and in any event is not very attractive the older varieties. Moreover, since the cepted, a new technology must produce since little or no benefits may material- new varieties have a shorter growing large increases in output, and the costs ize in a drought year. In fact, most of the period than the traditional varieties, must be low enough to leave the increases in fertilizer use to date have possibilities of double cropping are also farmer with a substantial margin of occurred in irrigated areas or areas greatly enhanced. Under these condi- profits. Until 1963, when food grain with reasonably reliable rainfall. tions, also stimulated by higher food prices were increased, the benefits The rapid expansion of private tube- grain prices, farmers have been quick available to progressive Indian farmers well irrigation in India and Pakistan to recognize the benefits of shifting to adopting new practices under the in- during the past decade was no doubt these new varieties and using more tensive agricultural district program related to the need for an assured water water and fertilizer for their high-yield- were barely sufficient to cover costs. In supply if fertilizer applications were to ing wheat and rice. fact, with poor weather, the farmer be profitable. Favorable prices for Fortunately in 1967/68 favorabie could very easily lose money. It was not sugarcane and cotton and the good weather contributed to the success of until the successive droughts of 1965 response of these crops to fertilizers the first large-scale production effort and 1966 that food grain prices rose to and water were also important factors. using the new varieties. Despite exten- levels which provided a real incentive Farmer interest in pest control also sive irrigation developments in both to use fertilizers. developed as higher yields raised the India and Pakistan, much of the irriga- Through much of South Asia, crop incidence of pests and diseases. tion is designed for drought insurance production is heavily dependent on the rather than intensive production. Ex- timeliness and adequacy of the sea- New Possibilities cept where tubewell irrigation provides sonal rains. A late monsoon or too little sufficient supplementary water for in- or too much rain can cause a 50% The introduction of the new high-yield- tensive cropping, available water is change in crop output from one year ing food grain varieties has brought spread over too large an area. In years to the next. Under these conditions an about a sharp change in farmer atti- of poor rainfall, drought conditions af- Building an irrigation canal near Empalme in the Rio Bravo region of northeast Mexico. The World BanA has made finance available to Mexico for the development of industry, electric power, transportation and agriculture. fect a considerable portion of the irri- continuous search for newer and better parts of the world and focused atten- gated as well as the rain-fed area. In varieties. tion on the high returns possible years of excessive rainfall, much of the The full benefits of the high-yielding through expanded research. Adaptive area is subject to flooding due to inade- varieties cannot be realized without work on other crops such as hybrid quate flood control and drainage facili- considerable change in the farmer's corn, millets and sorghums, grasses, ties. Some of the new high-yielding customary practices. The IRRI varieties legumes and oilseeds will also no doubt varieties are more susceptible to permit a substantial increase in dou- be stimulated. Plans for establishment drought and flood damage than the ble cropping, which in turn requires a of a regional research center in Africa traditional varieties. As a result, the considerable speed-up in land prepara- are well under way and centers in Latin scope for expansion of these new high- tion, planting, harvesting, and thresh- America are being strengthened. yielding varieties will be limited to ing activities. In addition, harvesting of The demand for fertilizers, pesticides, areas where irrigation, flood control one of the crops may occur during the farm machinery and more adequate and drainage facilities are adequate. rainy season, in which case harvesting water supplies is rising sharply over Considerable investment in facilities for methods may have to be changed and previous expectations. Facilities for the better water control will therefore be arrangements made for drying the production, storage, distribution and needed to realize the potentialities of grain. To overcome these problems, marketing of inputs will have to be ex- the new varieties fully. On the other some degree of mechanization will panded to meet these higher demands. hand, the higher yields which can be probably be necessary to meet peak Moreover, the change from traditional realized will sharply raise the returns season labor requirements. Double non-cash inputs to high levels of cash from such investments. cropping could, however, increase total inputs will require the expansion of On the technical side, a number of employment throughout the year and farm credit. This will entail the use of outstanding problems remain. For ex- thus help relieve underemployment. all available credit channels, includ- ample, consumer tastes usually favor The production and distribution of ing a much fuller participation of the locally grown varieties: plant breeders seeds of proven quality will become private sector, both for short-term are already at work trying to combine extremely important, since poor germi- production and marketing credit and these taste characteristics of local va- nation resulting from the admixture of for medium and long-term credit to rieties with the high-yielding character- inferior seed can sharply reduce out- finance farm improvement. An impor- istics of the new varieties. Similarly, put. Legislation regulating standards of tant aspect of the new situation is that, local varieties are more tolerant to local seed quality is needed as well as tech- with the higher returns from the new va- pests and diseases. Even if initial prob- nical assistance and financing for de- rieties, the ready availability and time- lems are not encountered, the new velopment of commercial seed produc- liness of credit become much more im- varieties can develop susceptibilities to tion and distribution. The World Bank portant to the farmer than the terms on plant diseases. Group is currently considering several which it is available. At the same time, A number of basic plant types have projects aimed at developing local creditterms maywell improve,sincethe now been developed, however, which seed industries. income prospects provided by double can provide the basis for continuous The greater responsiveness of the cropping high-yielding varieties make adaptive research on an intensive new varieties to. heavy fertilizer appli- the farmer a much better credit risk. scale. This should provide a flow of new cation is already producing a sharp The new technology is not primarily varieties to meet changing require- increase in fertilizer demand. The new dependent on economies of scale. Both ments. Fortunately, the varieties devel- awareness of the importance of ferti- small and large farmers can benefit; oped so far have been tolerant to an lizer is reflected in higher priorities be- consequently, millions of farms cur- unusually wide range of conditions, and ing given to fertilizer imports and to rently existing on the margin of sub- their success has focused attention on projects for fertilizer production. sistence may now have an opportunity the high pay-offs research can produce. to become viable commercial entities. Much valuable work has been done in The Significance of the New Varieties This in turn will make it possible to the developing countries themselves in The success of the new high-yielding substitute sound agricultural credit local adaptive research; however, sub- varieties of wheat and rice in Asia has programs for rural welfare schemes stantial investment in additional facili- already stimulated introduction of these dependent on uncertain grants and ties is still necessary to carry on the varieties into research stations in other subsidies. The move to a modern high input uctivity of the new varieties should also will have to step up its technical assist- agriculture will also call for an improve- make such investment more profitable. ance activities in the planning, prepara- ment in extension services designed to The Bank Group has already sponsored tion and implementation of projects. cope with the more sophisticated prob- irrigation or fertilizer projects in a num- The International Finance Corporation lems which farmers will face, rather ber of countries, including Colombia, is expected to be more active in financ- than to disseminate mass information India, Iran, Malaysia, Mexico, Pakistan, ing the production and distribution of on simple practices. In this respect the Philippines, Sudan, Thailand and fertilizers, insecticides and other impor- there seems to be considerable scope Turkey, and is examining the possibility tant agricultural inputs. High priority for strengthening the extension role of of further investment for these pur- must also be given to the financing distributors of farms inputs. poses. At the same time, the Group is of processing, storage and marketing The larger grain crops will accentu- already channeling funds into financing facilities for the increased output which ate the needs for storage and handling inputs such as seeds, pesticides and can be expected. Investments in farm- facilities to prevent large-scale damage machinery; it is seeking to increase its to-market roads as well as basic in- and losses from insects and rodents support for projects of this type, and vestments in roads, railways and ports and from exposure to heat and mois- for agricultural education and credit will need to be increased to handle the ture. Considerable investments will be programs. higher volume of trade generated by required for storage, processing and While attention has been focused on increased production. marketing facilities as well as farm-to- the recent achievements in Asia with market roads. Moreover, as more de- high-yielding varieties of wheat and veloping countries benefit from the rice, similar developments are taking ! new technology there is likely to be a place in other sectors of agriculture reduced need for food aid and eventu- and other geographical areas, perhaps The need for a considerable increase ally a reversal of present trade patterns not on the same dramatic scale but in food production must be viewed ior food grains. This will require a re- nevertheless paving the way for more against the background of the "popula- thinking of current policies in devel- rapid development. The Bank Group tion explosion." The population in de- oped as well as developing countries, has been supporting such develop- veloping countries grew at a rate of with a possible view to shifting produc- ments by increasing the volume and about 2.5% per year between 1960 and tion resources from food grains into diversity of its agricultural lending. 1966 (Table 1). This average conceals feed grain and livestock production, in Some recent examples are: livestock large variations between regions and order to meet a growing demand for projects in Africa and in Latin America countries. Latin America, for instance, proteins. based on new technology for tropical had a population growth rate of about grasses and legumes, improved animal 2.9%, since its relatively more ad- Implications for the Bank Group breeds and better management; planta- vanced level of development resulted The Bank Group has always been tion crops in Africa and Malaysia utiliz- in a death rate lower than that of other keenly aware of the need to increase ing high-yielding planting materials; developing regions. agricultural production in the develop- and the introduction of agricultural These unprecedentedly high rates of ing world and is already financing credit schemes and integrated develop- population growth are the result of a many projects for this purpose. These ment projects which provide smalihold- rapid postwar decline in the death rate, are discussed in some detail in Part ers in Africa with draft power, modern combined with a constant birth rate. One (see pages 11-13). New opportuni- equipment, fertilizers and pesticides to The expectation of life at birth, a meas- ties for higher food grain production improve the production of their tradi- ure of mortality that is not influenced now exist through the cultivation of tional crops. The large number and by the age structure of the population, the high-yielding crop varieties. Be- variety of agricultural projects cur- has increased by 0.5 to 1.0 years prer cause these respond more favorably rently under consideration indicate a annum in the postwar period. This has than traditional varieties to improve- continued growth in the volume and had a greater proportional impact on ments in water control and higher fer- scope of the Bank Group's activities in the younger age groups and has re- tilizer inputs, investment in fertilizer agriculture. sulted in a much younger age structure and irrigation projects has now taken In addition, the Bank Group in co- of the population. The result is that the on a new importance. The higher prod- operation with FAO and other agencies crude death rate fell to about 18 per thousand in 1960-65; this again con- the death rate would continue to de- Asia, where 70% of the population lives ceals large variations. Furthermore, cline, first at the present rate, and then in countries favoring such policies; many countries can still expect further at a slower rate, and also by assuming comparable figures for other regions declines in their death rates. In some that the birth rate would decline slowly are 20% in Africa (mostly in North countries such as the Republic of at first and then at an accelerating Africa) and even less in Latin America. China, Costa Rica and Jamaica, death pace. Even under such assumptions, Despite the trend toward encour- rates have fallen to six to nine per the growth rate of the population of agement of family planning, progress thousand, well below the rate in the developing countries would increase to so far has been extremely modest. As United States."0 Similar falls could 2.7% between 1970 and 1975, and only yet, very few if any programs have ini- occur in other developing countries, then would start to decline. The UN tiated a measurable decline in birth regardless of their rate of economic projections show an increase in the rates, though in several countries of development. population of developing countries'1 East Asia with well-established pro- Since death rates may well decline from about 1,370 million in 1960 to grams (the Republic of China, Hong stfll further, any prospective reversal in about 2,300 million in 1980, and to about Kong, Singapore and probably Korea), the present acceleration of the rates of 3,600 million in the year 2000. a decline that had already started be- population growth can come about only These high rates of population fore the introduction of the program has as a result of a reduction in birth rates. growth explain the increasing emphasis been accelerated. In all these countries To have any real effect, such a reduc- on the adoption of population control birth rates had begun to fall appar- tion will have to be substantial, more policies. The adoption of such policies ently as a result of a general improve- than counteracting the prospective re- constitutes a drastic change in attitudes ment in economic and social conditions. duction in the death rate. The United toward the role of government in this The great challenge to national popu- Nations has worked out the implica- area. This change occurred in the early lation policies, however, is whether a tions of these trends by assuming that 1960s; as a result, about half the total decline in birth rates can be initiated population of the developing world lives ahead of its "normal" pace within the 0This is to a large extent the result of the young age in countries committed to birth control framework of overall economic and structure in these countries. For instance, it the Republic of China had the population age structure policies. The movement originated in social development. of the US, then with the existing mortality condi- tions the death rate would be around 14 per thou- In most cases It IS too early to evalu- sand instead of SIX per thotisand. ''Excluding Mainland China and Mongolia. ate whether this challenge will be met successfully, because most family plan- ning programs have been in existence Population Growth, 1950-66 for such a short time. An intensification Average Annual Rates of emphasis on population control is necessary because population growth Inusrilie Crates are expected to rise further. As an *ndustrialized Counties 1.2% indication of the economic benefits of North America 1 .7% a slowdown in population growth, it has Western Europe 0.8% been calculated that, if a developing country with an average per capita in- Developing Countries 2.3% come of $150 to $200 a year success- Southern Europe 1.4% fully reduced its fertility by 50% over a South Asia 2.2% period of 25 years, per capita income would be at least 40% higher than Atrnca 2.3% otherwise after 30 years, and over twice East Asia 2.6% as high at the end of 60 years. Latin America 2.9% Population control is therefore a nec- Middle East 3.0% essary complement to policies designed to raise food production and improve For geographical coverage, see note to Table 1, page the standards of living in developing countries. Statistical A ex Table Page 1 Real Gross Domrestic Product, Population and; Gros's Domestic Product Per Capita-Regionai Summary .......... .49 2 Economic Indicators for 63 Selected Developing and Industrialized Countries- Regional Summary. ...... ........ 50 3 Indices of World Agricultural Production, Total and Per Capita, 1957-1967 .50 4 Indices of World Food Production, Total and Per Capita, 1956-1966 ....... 51 5 Trade Balance and Changes in Reserves of Developing Countries, 1960-1967. .--51 6 External Public Debt Outstanding and Debt Service Payments of Developing Countries . :.......... ... 52 7 Service Payments on External O3fficial Debt as Percentage of Exports of Goods and Services for 54 Developing Countries ........ 53 8 Grants and Loan Disbursements, and Debt Service`Payments of, Developing Countries in 1965 ........... ........ 54 9 Grants and Loan Disbursements, and Debt Service Payments of Developing Countries in 1966. . ......... 55 10 External Public Debt and Grants4Incurred in 1965 by 59 Developing Countries, and Weighted Average Terms ....... ..... 56 11 External Public Debt and Grants Incurred in 1966 by 59 Developing Countries, and Weighted Average Terms.:. ................ 58 12 Weighted Average Terms of Externai Public Debt by Sources in 1965 ...... . 60 13 Weighted Average Terms of External Publiic Debt by Sources in 1966. . ............. 60 14 Flow of Net Financial Resources from IDA Part I Countries to Developing Countries and Multilateral Institutions .: .... ......... 61 15 Bond Issues Placed Internationally by Market and Country of Borrowing Entity, 1966-1968 ............. 62 16 Average Yield of New Foreign and International Bonds, 1967-First Halt 1968 64 .3 ~ ~ ~ f : : : f fff :0:0XSfu:9 ;X0 fi000EX ;f0 ; \ Real Gross Domestic Product, Population Table 1 and Gross Domestic Product Per Capita-Regional Summary Average Annual Rates of Growth (%) 1950-60 1960-66 1950-66 Developing Countries G D P ....... _......._ ........ .............. 4.7 4.8 4.7 Population ................ ............. ... 2.2 2.5 2.3 GDP per capita .... ............................ 2.4 2.3 2.3 Africa G D P ........... .............. ............. 4.4 3.3 4.0 Population .............. ............... 2.2 2.3 2.3 GDP per capita ..... ....... ............. ..... 2.2 1.0 1.7 South Asia G D P .............. ....................... .... 3.6 3.4 3.6 eopulation ............................... .... 1.9 2.5 2.2 GDP per capita .................. .......... .. 1.7 0.5 1.4 East Asia G D P ........................ ................ 5.1 4.9 5.1 Population .............................. '. 2.5 2.7 2.6 GDP per capita ............................ . 2.5 2.1 2.4 Southern Europe GDP .......................... 5.6 7.7 6.4 Population ..... ..... .................... 1.4 1.4 1.4 GDP per capita ........... ....... 4.1 6.2 4.9 Latin America GDP ........................... 4.9 4.7 4.8 Population... . .............. .................. 2.9 2.9 2.9 GDP per capita .................... ........... 1.9 1.7 1.8 Middle East GDP ........................... 5.6 7.2 6.2 Population ... ......................... 3.1 2.9 3.0 GDP per capita..... ...... ................ 2.4 4.2 3.1 Industrialized Countries GDP ....... ....... 4.0 5.1 4.4 Population .................. ............. 1.2 1.2 1.2 GDP per capita .... ........................... 2.8 3.9 3.2 North America GDP ........................... 3.3 5.0 3.9 Population ....... .............. .......... 1.8 1.5 1.7 GDP per capita . ............... ........... 1.5 3.4 2.2 Western Europe GOP ........ ..... .................. 4.7 4.4 4.6 Population .................. ............. 0.7 1.0 0.8 GDP per capita ........................... 4.0 3.4 3.8 Other Industrialized Countries GDP ........................... 6.2 8.1 6.9 Population ............................... 1.4 1.3 1.4 GDP per capita ......................... ...... 4.7 6.7 5.4 Estimates for the following countries are included in this table: DEVELOPING COUNTRIES-56 countries covering approximately 90% of GDP of all developing countries. Africa: Algeria, Rep. of Congo, Ethiopia, Ghana, Kenya, Malawi, Morocco, Nigeria, Rhodesia, Sudan, Tanzania, Tunisia, Uganda, United Arab Republic and Zambia. These cDuntries account for 76% of the aggregate GDP of the region. South Asia: Burma, Ceylon, India and Pakistan (Coverage 100%). East Asia: Rep. of China, Malaysia, Philippines, Thailand and Indonesia (Coverage 68%). Southern Europe: Cyprus, Greece, Portugal, Spain, Turkey and Yugoslavia (Coverage 100%). Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Rep., El Salvador, Ecuador, Guatemala, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela (Coverage 99%). Middle East: Iran, Iraq, Israel, Jordan and Syria (Coverage 73-). INDUSTRIALIZED COUNTRIES North America: Canada and United States. Western Europe: Austria, Belgium, Denmark, Finland, France, Federal Rep. of Germany, Italy, Netherlands, Norway, Sweden, Switzerland, United Kingdom, Ireland, Iceland and Luxembourg. Other industrialized countries: Australia, Japan, New Zealand and South Africa. SOURCE: World Bank. Economic Indicators for 63 Selected Developing and Industrialized Countries-Regional Summary Table 2 Average Annual Rates of Growth (%) 1960-66 % of GNP Average 1960-66 Total Popu- Total GDP Agri- Manufac- Ex- Im- Gross Gross Current Region lation GDP Per cultural turing portsl5) ports(5) Invest- Invest- Savings Account Capita Prod. Prod. ment ment Deficit (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Developing Countries 2.5 4.8 2.3 2.1 7.3 7.4 7.8 8.6 17.4 15.2 2.2 Africari) 2.3 3.3 1.0 2.5 5.9 5.3 4.8 5.7 13.7 10.1 3.6 South Asia 2.5 3.4 0.5 1.0 7.0 2.2 2.8 7.5 13.8 11.0 2.8 East Asia ..s 2.7 4.9 2.1 2.1 5.9 7.2 6.6 9.3 13.4 12.0 1.4 Southern Europe ........... 1.4 7.7 6.2 2.8 10.8 14.7 18.4 17.2 23.8 21.0 2.8 Latin America (2 ) . 2.9 4.7 1.7 2.7 5.6 5.3 4.3 3.7 18.0 16.9 1.1 Middle Eastt3. 2.9 7.2 4.2 4.1 9.3 10.1 9.5 5.7 19.3 14.4 4.9 Industrialized Countries 1.2 5.1 3.9 1.5 6.3 7.8 8.0 6.3 20.9 21.4 -0.5 North America 1.5 5.0 3.4 1.3 6.5 6.7 6.5 6.1 17.9 18.7 -.3 Western Europe4).. . 1.0 4.4 3.4 1.6 5.1 9.0 9.9 5.2 22.8 23.4 -0.6 Other . .1.3 8.1 6.7 2.1 10.7 11.1 11.1 9.8 32.7 31.7 1.0 Note: The data pertain to the same countries as those included in Table 1, except as shown in footnotes I to 4. (t) Columns 4 through 11 exclude Algeria, Republic of Congo, Malawi, Rhodesia, United Arab Republic and Zambia. (2) Columns 4 through 11 exclude Bolivia, Costa Rica, Haiti and Trinidad & Tobago. (3) Columns 4 through 11 exclude Syria. (4) Columns 4 through 11 exclude Iceland, Luxembourg, Sweden and Switzerland. 15) Goods and Services at current prices. SOURCE: World Bank Indices of World Agricultural Production, Total and Per Capita, 1957-1967 Table 3 (1957-1959 = 100) Country or Region 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967(1) Total World(2l...... ... ... 96 102 103 106 108 111 114 117 118 122 127 Industrialized countries(3) . 96 102 102 106 107 111 112 116 117 123 126 Developingcountries(4) 95 101 104 107 111 112 117 119 121 120 130 India .95 101 104 110 115 110 117 120 109 107 128 Otherdevelopingcountries 95 100 104 106 109 113 117 119 126 125 130 Per Capita World2.i. 98 102 101 102 102 103 103 104 103 104 107 Industrialized countries(3). 97 102 101 103 103 106 105 108 107 112 113 Developing countries(4)... 97 101 102 102 103 102 103 103 102 98 104 India .97 101 102 105 108 101 104 105 93 89 104 Other developing countries 97 100 101 101 101 102 103 102 105 102 103 (1) Preliminary. (2) Excluding Mainland China, Mongolia, North Korea and North Viet-Nam. 13) Canada, United States, Europe, USSR, Japan, South Africa, Australia and New Zealand. (4) Latin America, Asia (excluding Japan and those countries listed in (2)) and Africa (excluding South Africa). SOURCE: USDA Economic Research Service, The World Agricultural Situation-Review of 1967 and Out/ook for 1968. Indices of World Food Production, Total and Per Capita, 1956-1966 Table 4 (1957-1959 - 100) Country or Region 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 Total WorldO) ...., ......... 96 96 102 103 107 108 111 114 117 117 121 Industrialized countries(2) ... 96 96 102 102 107 107 111 112 116 116 122 Developing countries . 96 96 101 103 108 110 112 118 120 119 119 Per Capita Worid(') ..... . ............ 100 98 102 101 103 102 103 103 104 102 104 Industrialized countries12) ... 98 97 102 101 104 103 106 105 108 106 111 Developing countries ... 101 98 101 101 103 102 102 104 103 100 98 India... ....... 101 96 102 102 106 108 101 103 104 92 88 Pakistan .. ............... 104 99 95 105 108 106 102 112 109 108 105 Other Asia)l (3) ........... 100 96 102 101 99 101 103 104 104 104 106 Africa(4)... ................. 102 100 100 100 102 97 102 103 101 100 96 Latin America ........ 101 100 101 99 99 100 101 103 103 105 101 "1) Excluding Mainland China, Mongolia, North Korea and North Viet-Nam. (2) Canada, United States, Europe, USSR, Japan, South Africa, Australia and New Zealand. (3) Excluding India, Pakistan and Japan. (4) Excluding South Africa. SOURCE: USDA Economic Research Service, World Food Situation-Prospects for World Grain Production, Consumption, and Trade. Trade Balance and Changes in Reserves of Developing Countries, 1960-1967 Table 5 (Billions of US Dollars) 1960 1961 1962 1963 1964 1965 1966 1967(1) Developing Countries Exports (f.o.b.) ........... ...... 29.0 29.3 31.0 33.8 37.1 39.3 42.4 43.8 Imports (c.i.f.) ................... 32.9 34.4 35.5 37.2 41.0 44.2 48.3 49.8 Trade Balance. r , I I ........... -3.9 -5.1 -4.5 -3.4 -3.9 -4.9 -5.9 -6.0 Change in Reserves(2i ........ . 0.4 -0.4 0.1 1.1 0.5 1.2 0.6 0.8 Excluding Developing Countries of Southern Europe(3l Exports (f.o.b.) ............. .... 26.9 27.1 28.6 31.2 34.0 35.9 38.4 39.5 Imports (c.i.f.) ........ .......... 29.6 30.5 31.1 32.0 35.2 37.3 40.2 41.7 Trade Balance ........ ..... -2.7 -3.4 -2.5 -0.8 -1.2 -1.4 -1.8 -2.2 Change in Reserves(2) ......... - -0.7 -0.2 1.0 0.1 1.3 0.6 0.8 Excluding Southtern Europe and Major Petroleum Exporters(4) Exports (f.o.b.) .... ............ 21.2 21.3 22.2 24.4 26.2 27.5 29.5 29.7 Imports (c.i.f.) ................... 26.8 27.7 28.3 29.3 31.8 33.3 36.6 37.6 Trade Balance . ............... -5.6 -6.4 -6.1 -4.9 -5.6 -5.8 -7.1 -7.9 Change in Reserves'2). 0.1 -0.8 -0.3 0.4 - 1.0 0.4 0.4 ('l Preliminary. (2) Gold, Foreign Exchange and Reserve Positions in the IMF; end of years figures; -sign means decrease. (3) Greece, Portugal, Spain, Turkey and Yugoslavia. (4) Iran, Iraq, Kuwait, Libya, Saudi Arabia and Venezuela. SOURCE: IMF, International Financial Statistics (June 1968). . External Public Debt Outstanding and Debt Service Payments of Developing Countries Table 6 (Billions of US Dollars) Debt Outstanding Including Debt Outstanding Region Undisbursed December 31, June 30, 1967 Service Payments 1963 1964 1965 1966 Total Disbursed Undisbursed 1963 1964 1965 1966 1967(l) 71 countrieS(2) Africa .3.148 3.729 4.624 5.114 5.244 3.90 1.34 0.192 0.242 0.252 0.320 0.413 Southern Europe. 2.873 3.385 4.002 4.199 4.239 3.21 1.03 0.266 0.325 0.414 0.437 0.432 East Asia 1.534 1.664 2.201 2.371 2.519 1.61 0.91 0.076 0.080 0.123 0.167 0.200 Middle East 1 ........18 1.610 2.161 2.130 1.956(3) 1.43 0.53 0.186 0.213 0.184 0.196 0.161(31 South Asia 6.154 7.784 9.343 10.573 10.827 7.20 3.63 0.280 0.406 0.352 0.426 0.539 Latin America 10.887 11.228 12.510 12.979 13.706 12.11 1.60 1.333 1.686 1.820 2.004 2.007 Total .26.114 29.403 34.841 37.366 38.491 29.46 9.04 2.332 2.951 3.146 3.552 3.753 92 countries Total .30.036 33.893 39.582 42.455 43.627 n.a. n.a. 2.583 3.295 3.477 3.890 4,075 O1)Projected. (2)The 71 countries are as follows: Africa: Algeria, Botswana, Central African Republic, Chad, East African Common Services Organization (EACSO), Ethiopia, Federation of Rhodesia.and Nyasaland, Gabon, Ghana, Ivory Coast, Kenya, Lesotho, Liberia, Malagasy, Malawi, Mali, Mauritania, Mauritius, Morocco, Nigeria, Rhodesia, Senegal, Sierra Leone, Somalia, Sudan, Swaziland, Tanzania, Tunisia, Uganda and Zambia. Southern Europe: Cyprus, Greece, Malta, Spain, Turkey and Yugoslavia. East Asia: China, Korea, Malaysia, Philippines, Singapore and Thailand. Middle East: Iran, Israel, Jordan and Lebanon. South Asia: Afghanistan, Ceylon, India and Pakistan. Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela. (3)Understated because data on Israel are not up to date. Actual figures are probably not less than 1966. n.a.=Not available. See also explanatory notes, page 64. SOURCE: World Bank. Service Payments on External Official Debt as Percentage Table 7 of Exports of Goods and Services for 54 Countries Region and Country 1963 1964 1965 1966 1967 Africa Algeria .... 1.0 0.9 1.3 0.9 1.4 Ethiopia .............. .......... 5.8 5.0 4.8 6.1 8.4 Ghana ....... ................ 3.7 7.8 11.8 20.4 n.a. ivory Coast .. ..........................- n.a. n.a. n.a. 1.7 5.9 Kenye(') . . . ... ..... 5.2 10.5 6.0 6.0 n.a. Morocco . ........................... . 2.4 1.7 2.7 2.9 n.a. Nigeria .......... ......... 3.0 3.0 3.4 5.4 n.a. Sierra Leone ......... . .................. 4.3 6.7 3.8 4.2 n.a. Somalia ................ . . .............. 2.6 2.4 5.7 2.1 n.a. Sudan . ............. .................. 6.6 7.9 5.5 6.4 6.9 Tanzania( ...... ................1-..1 4.0 3.6 4.9 4.5 n.a. Tunisia .................. ............. 14.2 8.6 7.6 11.9 n.a. Uganda(') ........................... ... 4.9 4.5 5.3 5.2 n.a. Zambia .... ............................ n.a. 3.4 4.2 2.1 n.a. South Asia Afghanistan ......... .......... 7.3 11.3 11.5 10.2 13.1 Ceylon ... ................ 1.4 1.5 1.9 2.6 2.5 India(2) .......................... ....... 9.8 15.2 13.2 16.3 n.a. Pakistan . ............... .......... 11.6 10.0 10.6 12.0 n.a. East Asia China, Republic of ..... ........... 3.5 2.2 2.9 3.5 3.1 Korea .................................. 3.0 2.7 2.2 2.6 n.a. Malaysia ................................ 0.9 1.3 1.2 1.4 n.a. Philippines ............ 3.2 2.8 5.3 6.2 7.0 Thailand ............ ................ 3.1 3.0 3.2 3.1 2.7 South Europe Cyprus ................................ 1.7 1.9 1.5 1.4 2.4 Greece ................ ............. 2.6 2.7 4.1 4.5 3.9 Malta ................................... 0.4 0.3 0.5 8.8 n.a. Spain ................................... 2.5 2.G 2.0 1.5 n.a. Turkey ................................... 14.7 20.2 13.1 11.6 n.a. Yugoslavia ........................... . 12.0 11.7 15.7 15.3 n.a. Latin America Argentina ... ......................... 16.6 26.8 20.9 25.3 27.7 Bolivia .. ......................... 5.9 12.7 12.5 8.4 n.a. Brazil(3) ............. ................... 25.9 24.5 33.9 30.6 n.a. Chile ............... ................... 17.7 18.0 17.3 12.7 n.a. Colombia ......... ........ 15.1 12.8 16.1 12.6 n.a. Costa Rica ........ -- ................... 8.7 7.4 7.9 10.2 n.a. Dominican Republic ................. . 0.3 2.7 18.6 12.3 8.2 Ecuador ...... ...................... 8.6 6.9 6.1 6.3 n.a. El Salvador ... .... . ................... 2.7 4.2 3.6 3.7 2.9 Guatemala ................ .... ..... 4.5 6.9 4.9 5.4 n.a. Guyana .... ...................... .. 4.1 4.3 4.0 5.9 3.4 Honduras .............. ............... 2.7 2.9 2.6 2.2 2.1 Jamaica ........... .................... 1.7 1.8 1.9 2.1 n.a. Mexico ........... .................. 17.1 23.9 24.6 21.6 n.a. Nicaragua ......... ....... - - ..... 4.8 4.1 4.2 5.2 4.9 Panama ................................. 1.8 2.4 2.6 2.5 n.a. Paraguay .... ................. ...... 7.8 7.7 6.6 5.6 7.5 Peru . ................................. 6.3 5.5 6.6 9.9 10.7 Trinidad & Tobago .............. . 1.2 3.5 1.9 2.1 n.a. Uruguay ................................ 6.1 6.0 6.7 13.8 17.5 Venezuela .............. ............... 3.4 2.9 1.7 2.6 n.a. Middle East Iran ....... ......................... 6.6 7.2 4.9 4.6 n.a. Israel ................................... 18.1 19.8 14.9 14.4 n.a. Jordan.... .... . . .................... 10.3 1.1 1.0 1.4 2.4 Lebanon ........ . . ..................... 0.6 0.5 0.4 0.7 n.a. n.ae-Not available. (I) including one-third of service payments on loans to EACSO. (2) Does not include suppliers' credit for which consistent data are not available. (3) Data on debt service paynments are based on publicationis of the Sainco Celntral da Republica do Bsasil and adjusted by World Bank staff. See also explanatory notes, page 64. SOURCE: World Bank; IMF, Balance of Payments Yearbook and International Financial Statistics. Grants and Loan Disbursements, and Debt Service Payments of Developing Countries in 1965 Table 8 (Thousands of US Dollars) Debt Service Region Grants Loans Total Debt Service on Loans as Y. of and Country Public Private Total Grants & Loans Public Private Total Grants & Loans Africa Botswana .......... 9,770 818 - 818 10,588 532 - 532 5.0 EACSO --- ....... - 3,875 420 4,295 4,295 5,287 10,872 16,159 376.2 Ethiopia .... 17,470 19,346 8,656 28,002 45,472 4,810 2,814 7,624 16.8 Gabon ........... 11,870 6,601 - 6,601 18,471 4,878 439 5,317 28.8 Kenya . ............ 38,870 33,629 1,158 34,787 73,657 9,184 5,706 14,890 20.2 Liberia ........... 12,050 15,825 166 15,991 28,041 4,119 7,794 11,913 42.5 Morocco ...... 74,130 81,565 - 81,565 155,695 11,334 4,438 15,772 10.1 Nigeria ...- 33,750 50,672 43,183 93,855 127,605 9,747 17,983 27,730 21.7 Southern Rhodesia. 6,180 9,375 - 9,375 15,555 11,002 13,821 24,823 159.6 Senegal ........... 45,340 2,258 - 2,258 47,598 3,089 30 3,119 6.6 Sudan . - ........ 11,930 16,193 - 16,193 28,123 7,944 5,583 13,527 48.1 Tanzania ......... 24,590 24,106 20 24,126 48,716 1,657 4,194 5,851 12.0 Tunisia .......... 57,650 63,348 38,343 101,691 159,341 5,684 9,249 14,933 9.4 Uganda .... ....... 13,300 5,856 - 5,856 19,156 3,891 1,786 5,677 29.6 Zambia ...... 12,430 4,370 - 4,370 16,800 9,132 14,022 23,154 137.8 Total ....... 369,330 337,837 91,946 429,783 799,113 92,290 98,731 191,021 23.9 South Asia Ceylon ...... 10,170 15,325 895 16,220 26,390 5,760 2,596 8,356 31.7 India .............. 562,320 955,298 11,204 966,502 1,528,822 255,803 12,792 268,595 17.6 Pakistan ... 215,140 350,448 28,148 378,596 593,736 56,540 13,657 70,197 11.8 Total ....... 787,630 1,321,071 40,247 1,361,318 2,148,948 318,103 29,045 347,148 16.2 East Asia China, Republic of.. 26,520 48,423 13,048 61,471 87,991 2,352 13,084 15,436 17.5 Korea ............. 171,970 6,164 35,806 41,970 213,940 807 5,661 6,468 3.0 Malaysia ........... 21,670 15,494 25,000 40,494 62,164 11,513 5,467 16,980 27.3 Philippines . ...... 71,470 48,430 116,084 164,514 235,984 10,333 47,545 57,878 24.5 Singapore ......... 2,810 2,983 - 2,983 5,793 1,001 - 1,001 17.3 Thailand ...... .... 33,180 24,684 - 24,684 57,864 15,851 8,567 24,418 42.2 Total ............. 327,620 146,178 189,938 336,116 663,736 41,857 80,324 122,181 18.4 Southern Europe Cyprus ............ 6,450 7,340 745 8,085 14,535 502 1,663 2,165 14.9 Greece ............ 17,530 38,314 25,000 63,314 80,844 8,880 18,720 27,600 34.1 Malta ....... 13,250 4,770 - 4,770 18,020 519 - 519 2.9 Spain ......... .... 5,480 22,983 11,073 34,056 39,536 33,162 15,223 48,385 122.4 Yugoslavia .... 5,930 180,737(l) 118,426(1) 299,163(l) 305,093(l) 103,772(1) 135,174(1) 238,946(a) 78.3 Total ....... 48,640 254,144 155,244 409,388 458,028 146,835 170,780 317,615 69.3 Latin America Argentina ......... 9,360 73,578 81,806 155,384 164,744 153,483 193,147 346,630 210.4 Chile ........ ..... 37,320 116,596 75,596 192,192 229,512 56,118 80,297 136,415 59.4 Costa Rica ..... ... 6,190 21,842 9,357 31,199 37,389 4,820 6,261 11,081 29.6 Dominican Republic 65,380 18,220 5,932 24,152 89,532 3,299 24,484 27,783 31.0 Ecuador ........... 16,270 9,580 5,104 14,684 30,954 6,973 5,285 12,258 39.6 El Salvador ........ 6,790 15,496 3,000 18,496 25,286 6,626 1,140 7,766 30.7 Guatemala ........ 9,830 5,831 7,767 13,598 23,428 4,396 6,729 11,125 47.5 Guyana ............ 5,470 2,335 - 2,335 7,805 3,262 1,517 4,779 61.2 Honduras .......... 4,400 7,249 140 7,389 11,789 2,159 1,396 3,555 30.2 Jamaica ........... 5,010 1,042 8,820 9,862 14,872 568 6,321 6,889 46.3 Mexico ............ 10,470 106,635 275,481 382,116 392,586 93J,38 392,228 485,366 123.6 Nicaragua ......... 8,760 6,437 2,692 9,129 17,889 4,974 2,367 7,341 41.0 Panama ........... 10,630 9,801 - 9,801 20,431 3,929 1,927 5,856 28.7 Paraguay .......... 6,710 4,572 3,562 8,134 14,844 2,115 2,265 4,380 29.5 Peru ............... 26,770 48,275 89,567 137,842 164,612 13,035 38,212 51,247 31.1 Trinidad & Tobago. 16,570 5,794 15,089 20,883 37,453 4,415 5,160 9,575 25.6 Uruguay ........... 3,360 2,646 14,937 17,583 20,943 8,260 8,744 17,004 81.2 Venezuela ......... 13,550 55,505 42,738 98,243 111,793 17,080 26,386 43,466 38.9 Total ........... 262,840 511,434 641,588 1,153,022 1,415,862 388,650 803,866 1,192,516 84.2 Grand Total ........ 1,796,060 2,570,664 1,118,963 3,689,627 5,485,687 987,735 1,182,746 2,170,481 39.6 (1) Projected due to lack of available data. See also explanatory notes, page 64. SOURCE: World Bank and the OECD. Grants and Loan Disbursements, and Debt Service Payments of Developing Countries in 1966 Table 9 (Thousands of US Dollars) Debt Service Region Grants Loans Total Debt Service on Loans as %,of and Country Public Private Total Grants & Loans Public Private Total Grants &Loans Africa Botswarna... .... 14,527 3,112 - 3,112 17,639 537 - 537 3.0 EACSO ...... - 11,821 263 12,084 12,084 5,570 11,091 16,661 137.9 Ethiopia... ..22,708 19,360 1 0,990 30,350 53,058 6,832 3,132 9,964 18.8 Gabon.... ..... 12,195 6,291 2,674 8,965 21,160 4,608 362 4,970 23.5 Kenya ... ..... 28,489 37,071 1,733 38,804 67,293 10,606 7,743 18,349 27.3 Liberia.... ..... 12,479 15,433 82 15,515 27,994 2,547 6,509 9,056 32.3 Malagasy Republic. 38,287 7,340 - 7,340 45,627 3,413 191 3,604 7.9 Nigeria.---..... 40,870 73,960 11,384 85,344 126,214 10,951 35,637 46,588 36.9 Southern Rhodesia. 454 2,683 6,309 8,992 9,446 5,786 4,077 9,863 104.4 Somalia ...... - 2,653 - 2,653 2,653 771 - 771 29.1 Sudan....... . 5,392 38,852 - 38,852 44,244 10,096 5,393 15,489 35.0 Tanzania... .... 31,141 19,093 2,097 21,190 52,331 2,836 3,917 6,753 12.9 Tunisia ....... 44,996 41,426 12,889 54,315 99,311 12,482 22,032 34,514 34.8 UIganda ... ..... 15,021 10,002 896 10,898 25,919 4,037 1,797 5,834 22.5 Zambia ....... 9,150 3,190 4,357 7,547 16,697 8,795 5,081 13,876 83.1 Total....... . 275,709 292,287 53,674 345,961 621,670 89,867 106,962 196,829 31.7 South Asia Ceylon ...... 12,854 35,498 186 35,684 48,538 9,094 1,220 10,314 21.2 India......... 651,399 784,684 26,345 811,029 1,462,428 312,088 7,192 319,280 21.8 Pakistan .. ... 155,341 308,411 52,804 361,215 516,556 72,401 12,050 84,451 16.3 Total. ..... 819,594 1,128,593 79,335 1,207,928 2,027,522 393,583 20,462 414,045 20.4 East Asia China, Republic of, 11,000 35,643 29,978 65,621 76,621 7,009 16,334 23,343 30.5 Korea ........ 143,255 70,953 103,063 174,016 317,271 971 10,612 11,583 3.7 Malaysia ....... 27,792 22,469 - 22,469 50,261 10,274 8,940 19,214 38.2 Philippines .... 43,935 31,196 22,443 53,639 97,574 12,010 62,169 74,179 76.0 Singapore .... 2,106 12,629 -. 12,629 14,735 1,401 - 1.401 9.5 -Thailand ....... 119,282 40,793 - 40,793 160,075 15,445 14,578 30,023 18.8 Total. ,~.. ... 347,370 213,683 155,484 369,167 716,537 47,110 112,633 159,743 22.3 Southern Europe Cyprus ... .. . 1,707 3,768 64 3,832 5,539 917 1,467 2,384 43.0 Greece ... ..... 20,552 43,559 39,905 83,464 104,016 14,488 22,155 36,643 35.2 Malta.... ..... 15,060 2,755 - 2,755 17,815 874 - 874 4.9 Yugoslavia('). ... 1,361 227,150(11 126,500(11 353,650(l' 355,011(') 167,8970') 98,114(1) 266,011(1) 74.9 Total ... .-_., 38,680 277,232 166,469 443,701 482,381 184,176 121,736 305,912 63.4 Latin Amnerica Argentina. . .... 10,023 107,545 164,624 272,169 282,192 188,745 265,591 454.336 161.0 Chile ...33,655 143,099 19,201 162,300 195,955 50,562 74,619 125,181 63.9 Costa Rica ..... 7,201 13,513 2,797 16,310 23,511 4,866 12,089 16,955 72.1 Dominican Republic 38,245 18,265 1,827 20,092 56,337 4,291 15,460 19,751 35.1 E.cuador,.. ..... 17,186 15,040 2,698 17,738 34,924 8,302 4,511 12,813 36.7 El Salvador ..... 11,347 13,751 1,500 15,251 26,598 6,429 1,398 7,827 29.4 Guatemala .... 9,380 2,380 13,241 15,621 25,001 4,631 9,383 14,014 56.1 Honduras. ..... 8,047 5,799 - 5,799 13,846 2,653 851 3,504 25.3 ,J.maica ...... 11,747 5,333 7,500 12,833 24,580 696 7,372 8,068 32.8 Mexico ....... 3,113 177,872 305,358 483,230 486,343 104,030 355,421 459,451 94.5 Nicaragua .... 6,090 13,204 8,729 21,933 28,023 5,455 3,616 9,071 32.4 Panama....... 9,301 12,756 - 12,756 22,057 4,279 2,057 6,336 28.8 Paraguay....... 4,767 9,164 3,175 12,339 17,106 2,068 1,492 3,560 20.8 Trinidad & Tobago. 6,727 5,136 370 5,506 12,233 3,819 6,640 10,459 85.5 Uruguay........ 4,871 11,603 7,985 19,588 24,459 18,890 15,387 34,277 140.1 Venezuela...... 23,177 85,381 10,416 95,797 118,974 25,349 38,760 64,109 53.9 Total ... ..... 202,877 639,841 549,421 1,189,262 1,392,139 435,065 814,647 1,249,712 89.8 Grand Total ..__ 1,684,230 2,551,636 1,004,383 3,556,019 5,240,249 1,149,801 1,176,440 2,326,241 94.4 (1) Projected due to lack of available data. (5) Due to a change in definition of reportable debt, disbursements on private loans may be understated. See also explanatory notes, page 64. SOURCE: World Bank and the OECD. External Public Debt and Grants Incurred in 1965 by 59 Developing Countries, and Weighted Average Terms Contractual Rate of Grace Terms to Concessionary Element as Grant and Grant-like Amount of Loans Interest Period Maturity Y. of Contractual Amount at Disbursements (US$ 000s)() (Years) (Years) 8% discount 10% discount (US$ 000s) Grand Total .... .....3,291,194 4.19 5.1 21.0 28.2 35.9 2,140,760 Africa ......... .... .. 540,653 4.14 5.6 23.6 31.4 39.8 515,530 Botswana ..... ...... .. - - - - - 9,770 Chad .............. - 1,334 4.04 1.4 9.3 13.7 19.7 17,360 EACSO..... _...... .. 47,671 5.68 6.5 27.9 23.2 35.8 - Ethiopia ......... 22,746 4.35 2.7 16.0 23.1 30.7 17,470 Gabon. . _...... ...911 4.50 3.7 13.2 16.8 25.2 11,870 Ivory Coast..... I.. .. ... 27,322 4.04 4.6 16.9 24.4 31.9 31,330 Kenya. ..I..I....... 34,524 4.85 5.4 27.5 29.4 41.3 38,870 Lesotho.... ......I I.. 28 6.75 1.0 25.0 9.9 23.5 9,480 Liberia......... ... 16,860 1.60 9.8 39.3 62.8 70.8 12,050 Malagasy .......... ...2,740 3.33 3.9 12.8 18.4 26.0 - Malawi .. ............ 6,604 2.53 6.4 23.2 44.9 53.8 30,880 Mauritania ............. 46 3.98 1.0 6.8 12.2 17.4 9,900 Morocco .......... ... 86,887 3.35 4.5 21.4 , 35.8 44.5 74,130 Nigeria............ ... 115,889 3.83 6.9 31.2 42.6 50.8 33,750 Rwanda ...............- - - - - - 7,480 Senegal... ....... ... 5,831 2.50 5.8 19.0 37.4 44.6 45,340 Sierra Leone. .......... 3,312 3.45 3.3 22.0 29.6 39.2 5,210 Somalia...... ... ... 6,200 0.75 10.0 49.5 76.8 82.6 26,590 Southern Rhodesia . ... ....7,000 5.50 15.0 15.0 18.9 31.8 6,180 Sudan ... ....... ... 55,036 5.03 5.0 20.9 23.4 34.1 11,930 Swaziland ..... ......- - - - - - 7,970 Tanzania ....... . _ .. 6,680 4.42 7.0 26.2 25.8 36.8 24,590 Tunisia....... .. .... 77,356 4.66 4.2 14.6 19.8 25.9 57,650 Uganda............. .. 14,100 3.87 4.4 17.0 23.2 31.9 13,300 Zambia. ....... 1,576 0.00 7.0 25.0 60.2 67.5 12,430 Europe ........ ...... 138,050 5.70 2.6 13.8 11.1 19.4 42,710 Cyprus . .. ......1...I- 748 3.50 1.0 1.5 6.9 9.1 6,450 Greece......... .... .. 51,336 5.87 2.9 12.4 9.0 17.4 17,530 Malta ...............1,540 6.75 1.0 25.0 11.7 25.3 13,250 Spain . .. .... .. ... 84,426 5.64 2.5 14.5 12.4 20.7 5,480 East Asia....... ..... 792,390 4.80 3.4 13.5 16.3 23.0 363,360 China .. ... ....... .. 111,519 5.38 3.7 14.7 9.4 18.2 26,520 Indonesia.......... .... 309,985 4.70 2.2 8.1 12.7 18.6 35,740 Koreat)...i ..... ...... 108,763 2.96 8.2 31.9 45.1 53.2 171,970 Malaysia ..... ...... 70,000 5.50 3.8 17.9 18.7 25.3 21,670 Philippines... _ ... ..... 146,973 5.84 1.7 5.5 6.5 11.1 71,470 Singa&pore ............. 6,800 5.50 4.0 20.0 26.3 37.1 2,810 Thailand.......... ... 38,350 3.93 5.0 22.8 24.0 33.9 33,180 Middle East.... _ .. ..... 69,630 4.50 3.5 17.2 22.2 31.4 179,160 Iraq ......... ..... 5,336 5.50 3.0 14.0 8.2 17.3 3,440 Israel. .. ....._ .... .... 58,518 4.72 3.3 16.8 20.9 30.2 112,110 Jordan ........ ... 5,776 1.69 5.9 23.9 48.7 56.8 63,610 South Asia... .... ... _ 1,045,491 3.00 7.0 28.7 43.6 52.0 787,630 Ceylon,...... .... .. 5,600 0.00 3.5 25.0 63.1 70.2 10,170 India(2) 767,257 2.98 7.4 29.8 45.9 54.6 562,320 Pakistan ~............ 272,634 3.13 5.9 25.8 36.3 43.8 215,140 Latin America ... ....... 704,980 5.00 4.3 17.7 20.7 27.9 252,370 Argentina .... ... .... 195,148 5.90 1.8 7.6 5.9 11.4 9,360 Chile.............. .. 129,470 3.42 7.5 30.1 45.5 53.4 37,320 Costa Rica ...... ..... 16,338 3.72 5.4 22.9 33.9 40.4 6,190 Dominican Republic. ~ ....... 17,180 3.10 6.0 24.7 39.6 47.7 65,380 Ecuador .............. 17,680 4.76 2.4 13.5 20.6 28.3 16,270 El Salvador.. ...... ..... 6,380 3.13 7.5 28.4 45.0 52.4 6,790 Guatemala ............. 9,700 4.76 3.6 14.8 19.7 24.4 9,830 Guyana........... .. .. 7,835 3.46 7.7 35.9 44.9 54.9 5,470 Honduras........... ... 18,466 3.02 8.5 34.4 49.5 58.2 4,400 Jamaica .............. 19,623 5.33 4.0 22.0 23.9 34.2 5,010 Nicaragua .... ... . _ ..16,824 4.38 6.5 26.8 25.8 34.8 8,760 Panama ............... 6,500 3.31 6.9 24.5 38.2 46.2 10,630 Paraguay............... 14,128 6.25 4.2 16.0 10.2 19.6 6,710 Peru ............... .. 129,312 5.79 3.9 15.9 14.0 22.1 26,770 Trinidad and Tobago .. .. ..... 9,332 3.80 6.4 29.7 28.1 35.7 16,570 Uruguay ... ........ .... 15,300 5.58 4.7 15.4 11.1 20.7 3,360 Venezuela ......... 75,764 5.24 2.9 12.7 10.8 18.9 13,550 (ilDoes not include credits with maturities shorter than three years. (2)Ooes not include suppliers' credits. See also explanatory notes, page 64. SOURCE: World Bank and the OECD Table 10 Loan Commitments Concessionary Element as Grant Equivalent of Grant Equivalent of Loans and Grant Disburse- Y. of Loans and Grants at Loans and Grants xUS$ OOs) at and Grants Per Capita (US$) at ments (US$000s) 8% discount 10%discount 8/ discount 10% discount 8% discount 10%discount 5,431,954 55.7 63.2 2,977,886 3,185,726 2.6 2.7 1,056,183 69.8 71.1 667,230 704,660 3.2 3.4 9,770 100.0 100.0 9,770 9,770 17.5 17.5 18,694 94.1 94.6 17,535 17,609 5.0 5.3 47,671 23.2 35.8 9,450 14,029 0.3 0.5 40,216 58.1 62.5 22,300 23,771 1.0 1.0 12,781 94.7 95.4 12,006 12,068 25.9 26.0 58,652 64.8 68.8 37,889 39,787 9.8 10.0 73,394 67.4 72.9 48,716 52,570 5.2 5.6 9,508 99.7 99.8 9,483 9,486 11.3 11.4 28,910 80.2 84.8 20,671 21,318 19.3 19.9 2,740 18.4 26.0 446 610 0.1 0.1 37,484 91.5 93.1 33,418 33,817 8.5 8.6 9,946 99.6 99.6 9,905 9,908 9.4 9.4 161,017 66.6 71.4 102,865 109,199 7.7 8.2 149,639 57.2 63.7 75,930 82,240 1.3 1.4 7,480 100.0 100.0 7,480 7,480 2.4 2.4 51,171 93.4 94.3 47,333 47,675 13.6 13.7 8,522 74.4 78.2 6,094 6,353 2.6 2.7 32,790 96.5 97.5 30,195 30,233 12.1 12.1 13,180 56.9 63.8 7,501 8,409 1.8 2.0 66,966 39.1 48.0 22,840 27,178 1.7 2.0 7,970 100.0 100.0 7,970 7,970 21.8 21.8 31,270 85.6 88.0 26,117 26,716 2.3 2.3 135,006 55.5 59.2 71,862 75,943 16.5 17.4 27,400 62.3 67.0 16,269 17,301 2.2 2.3 14,006 96.4 97.2 13,185 13,220 3.6 3.6 180,760 33.4 40.0 56,752 66,911 1.4 1.6 7,198 90.3 90.6 6,502 6,518 10.9 11.0 68,866 33.4 39.8 21,846 25,697 2.6 3.0 14,790 90.8 92.2 13,430 13,640 42.1 42.7 89,906 18.2 26.1 14,974 21,056 0.5 0.7 1,155,750 44.4 49.1 480,626 525,177 2.2 2.4 138,039 28.9 36.1 35,620 43,642 2.9 3.6 345,725 23.4 27.8 72,303 88,515 0.7 0.8 280,733 80.9 84.1 213,209 218,813 7.5 7.7 91,670 39.4 46.3 33,486 38,357 4.2 4.8 218,443 37.7 40.8 80,699 87,173 2.5 2.7 9,610 50.0 57.8 4,364 4,935 2.3 2.6 71,530 62.4 68.0 40,945 43,742 1.3 1.4 248,790 79.1 81.8 193,769 199,524 15.2 15.7 8,776 45.9 51.6 3,845 4,276 0.5 0.5 170,628 73.9 77.2 123,632 128,540 48.2 50.1 69,386 95.9 96.6 66,292 66,708 33.5 33.7 1,833,121 69.4 74.3 1,193,795 1,260,406 2.0 2.1 15,770 87.9 90.4 13,322 13,584 1.2 1.2 1,329,577 70.1 75.1 880,961 933,203 1.8 1.9 487,774 66.9 71.3 299,512 313,619 2.9 3.0 957,350 41.0 48.6 385,714 429,048 4.7 5.2 204,508 10.4 15.7 20,334 30,311 0.9 1.6 166,790 58.6 64.8 91,040 98,973 10.6 11.5 22,528 53.0 57.8 11,354 12,254 7.9 8.6 82,560 87.9 89.7 71,840 73,087 19.8 20.2 33,950 60.0 64.1 19,679 20,881 3.8 4.1 13,170 74.5 78.2 9,417 9,791 3.2 3.3 19,530 60.5 63.0 11,702 12,141 2.6 2.7 13,305 69.0 74.9 8,641 9,258 13.4 14.3 22,866 60.8 67.9 11,927 12,871 5.2 5.6 24,633 41.0 49.2 9,162 10,779 5.1 6.6 25,584 53.8 60.0 12,473 13,615 7.5 8.2 17,130 77.6 80.8 12,932 13,367 10.4 10.7 20,838 42.3 49.0 7,942 8,985 3.9 4.4 156,082 30.3 37.1 42,776 51,356 3.7 4.4 25,902 77.2 80.2 18,733 19,208 19.2 19.7 18,660 29.3 37.5 4,796 5,941 1.8 2.2 89,314 25.5 32.5 20,966 26,230 2.4 3.0 External Public Debt and Grants Incurred in 1966 by 59 Developing Countries, and Weighted Average Terms Contractual Rate of Grace Terms to Concessionary Element as Grant and Grant-like AmountofLoans Interest Period Maturity %ofContractual Amountat Disbursements (US$ 000s) (%) (Years) (Years) 8% discount 10% discount (US$ 0oos) Grand Total 3,714,794 3.39 6.4 26.3 39.4 47.3 2,016,313 Africa . 518,976 3.34 4.7 23.1 35.5 44.3 476,915 Botswana ..1,826 5.76 1.8 25.0 17.7 30.3 14,527 Chad 13543 .............................. 5.30 1.4 9.8 17.9 24.8 16,498 EACSO . 4,355 1.85 2.9 21.7 43.1 51.3 - Ethiopia 37,728 2.52 9.1 37.0 51.2 58.9 22,708 Gabon 8,811 4.68 3.6 13.1 15.2 23.9 12,195 Ivory Coast 22,509 4.83 3.0 12.7 19.5 26.8 29,239 Kenya 47,877 3.33 4.6 22.8 35.3 43.8 28,489 Lesotho ..... ....................4,100 0.75 10.0 49.5 75.9 81.7 11,116 Liberia 8,968 2.75 4.1 21.7 35.7 44.2 12,479 Malagasy 16,034 1.50 8.7 40.2 64.2 70.5 38,287 Malawi .............. ........ _.. 24,002 0.12 3.4 26.3 63.3 70.4 20,636 Mauritania . ........................ 7,419 3.41 8.4 44.2 33.3 42.8 7,219 Morocco 114,695 4.15 3.3 18.2 24.5 32.9 58,014 Nigeria. . . 28,379 5.86 2.6 11.3 15.3 22.5 40,870- Rwanda 2,565 3.53 1.4 5.2 12.4 15.4 - Senegal. . . ......................... 11,087 1.10 9.5 42.9 68.6 74.3 44,301 Sierra Leone. . ................. I .... 255 0.00 2.3 18.1 46.8 52.4 6,571 Somalia 7,330 0.95 5.2 16.0 39.4 46.9 - Southern Rhodesia - ................. .- - - - - 454 Sudan 17,582 2.61 6.5 26.1 44.0 52.0 5,392 Swaziland. ..................... 2,080 4.06 3.8 23.7 28.7 39.3 7,612 Tanzania .................... ...... 23,232 1.37 5.6 24.1 43.7 50.0 31,141 Tunisia 6 0,7 6 4 60.764 3.38 6.6 28.3 43.9 50.7 44,996 Uganda 19,817 0.16 3.1 24.8 61.2 68.2 15,021 Zambia 34,018 5.66 2.7 14.8 12.4 20.7 9,150 Europe ..108,670 5.93 2.2 13.1 11.0 19.6 39,910 Cyprus .............. ....... ..- - - - 1,707 Greece 5 6 , 0 7 0 56,070 6.30 1.7 12.5 9.3 17.7 20,552 Malta ..... ......................... 1,540 6.75 1.0 25.0 11.7 25.3 15,060 Spain 5 1 , 0 6 0 .......................51,060 5.50 2.8 13.5 13.0 21.7 2,591 East Asia 575,949 4.38 4.9 19.6 24.2 32.6 382,751 China.. 63,023 5.51 4.0 9.5 6.6 13.6 11,000 Indonesia 156,019 4.18 2.9 11.7 18.8 25.8 35,381 Korea'). 200,506 3.25 7.5 27.5 40.1 48.4 143,255 Malaysia 44,264 5.64 3.7 18.8 19.2 29.6 27,792 Philippines ................... ..... 45,137 4.88 2.6 19.5 16.8 25.6 43,935 Singapore 25,000 6.00 3.6 23.2 15.7 27.8 2,106 Thailand 4 2 , 0 0 0 ..............42,000 6.00 5.3 25.3 15.0 27.3 119,282 Middle East 66,988 3.77 4.2 17.8 25.8 34.0 96,419 Iraq ......_..... .................. 24,607 5.94 3.8 19.1 13.3 24.1 4,285 Israel 14,874 5.85 1.1 7.8 6.5 12.5 22,693 Jordan 27,507 0.70 6.3 22.0 48.8 56.2 69,441 South Asia. ...... ......... 1,514.657 1.94 8.9 34.6 58.2 65.6 820,554 - Ceylon 34,340 2.46 4.7 21.0 33.9 40.9 12,854 India(2) .... ... .................... 1,000,074 1.78 9.6 36.5 62.4 69.7 652,359 Pakistan 480,243 2.24 7.8 31.5 50.7 58.4 155,341 Latin America 929,554 4.83 4.9 20.9 24.7 33.0 199,764 Argentina 108,117 6.14 1.1 5.8 2.6 7.1 10,023 Chile 245,055 4.31 6.7 27.6 36.1 45.4 33,655 Costa Rica 8,060 4.29 7.2 31.9 30.3 39.6 7,201 Dominican Republic 58,359 2.46 8.8 35.4 66.1 73.1 36,245 Ecuador 39,475 4.23 4.8 20.0 26.5 35.0 17,186 El Salvador .... .................... 8,535 2.07 6.3 31.5 52.0 60.3 11,347 Guatemala 22,258 5.12 3.6 19.5 19.1 26.3 9,380 "- Guyana 3,765 3.37 7.8 36.0 48.3 58.1 - Honduras 21,058 4.23 6.9 30.5 28.6 38.6 8,047 Jamaica 49,689 6.19 3.5 19.3 12.5 23.2 11,747 Nicaragua 30,806 3.96 6.7 28.0 38.9 46.3 6,090 Panama .6,100 3.57 3.7 27.0 38.5 47.6 9,301 Paraguay. 15,367 2.81 6.4 32.2 46.3 52.2 4,767 Peru 266,110 5.46 4.0 14.8 12.6 21.7 - Trinidad and Tobago - - - - - - 6,727 Uruguay .5,000 1.92 11.5 41.5 68.4 76.6 4,871 Venezuela .................... 41,800 5.99 2.6 14.6 14.3 23.3 23,177 (MIDoes not include credits with maturities shorter than three years. (2)Does not include suppliers' credits. lS)The concessionary element was raised in 1966 mainly due to the special increase in food aid. See also explanatory notes, page 64. SOURCE: World Bank and the OECD. Table 11 Loan Commitments Concessionary Element as Grant Equivalent of Grant Equivalent of Loans and Grant Disburse- % of Loans and Grants at Loans and Grants (US$ OOs) at and Grants per Capita (US$) at ments (US$000s) 8% discount 10%discount 8% discount 10% discount 8% discount 10% discount 5,731,107 61.9 66.2 3,333,136 3,559,444 2.8 3.0 995,891 68.1 73.2 642,483 673,302 3.0 3.2 16,353 91.0 92.5 14,841 15,061 25.6 26.0 30,041 63.1 66.3 18,905 19,825 5.6 5.9 4,355 43.1 51.3 1,788 2,106 0.1 0.1 60,436 71.9 76.8 38,424 39,988 1.7 1.7 21,006 66.6 70.4 13,394 14,040 28.6 30.0 51,748 66.7 70.1 33,244 34,640 8.5 8.8 76,366 60.6 66.0 44,167 47,620 4.6 4.9 15,216 94.7 96.2 13,473 13,499 15.7 15.7 21,447 74.4 78.0 15,430 16,063 14.2 14.7 51,321 90.4 92.3 47,243 47,804 11.2 11.4 44,638 81.1 85.0 34,486 35,710 8.5 8.8 14,638 70.9 76.0 9,072 9,453 8.5 8.8 172,709 51.5 57.3 83,464 91,524 6.1 6.7 69,249 66.6 69.8 44,933 46,746 0.8 0.8 2,565 12.4 15.4 304 374 0.1 0.1 55,388 94.3 95.4 51,057 51,419 21.2 21.4 6,826 98.0 98.2 6,690 6,704 2.6 2.6 7,330 39.4 46.9 2,421 2,768 0.6 0.6 454 100.0 100.0 454 454 0.1 0.1 22,974 58.4 64.7 12,216 13,235 0.9 0.9 9,692 85.1 87.4 8,188 8,394 21.8 22.4 54,373 77.5 80.3 40,183 41,227 3.4 3.5 105,760 69.3 73.3 68,933 71,969 15.5 16.1 34,838 78.6 85.3 26,204 27,287 3.4 3.5 43,168 32.4 39.1 12,969 15,392 3.4 4.0 148,580 35.7 42.1 51,377 60,122 1.3 1.5 1,707 100.0 100.0 1,707 1,707 2.8 2.8 76,622 33.9 40.2 25,665 30,260 3.0 3.5 16,600 91.8 93.1 15,240 15,450 48.1 48.7 53,651 17.5 25.8 8,765 12,705 0.3 0.4 958,700 55.1 62.2 504,688 542,037 2.3 2.4 74,023 21.8 28.0 14,695 18,484 1.1 1.4 191,400 18.8 40.8 62,124 71,301 0.6 0.7 343,761 67.2 72.2 212,513 224,137 7.3 7.7 72,056 53.5 60.2 34,992 38,479 4.2 4.6 89,072 60.9 65.7 50,470 53,552 1.5 1.6 27,106 23.1 34.3 5,573 8,061 2.9 4.2 161,282 81.3 84.6 124,321 128,023 3.9 4.0 163,407 71.6 75.1 111,841 116,189 8.8 8.9 28,892 27.8 37.2 7,124 9,273 0.8 1.1 37,567 63.5 65.9 23,638 24,497 9.0 9.3 96,948 86.9 89.1 81,079 82,419 39.4 40.0 2,335,211 73.8 78.7 1,615,204 1,696,581 2.7 2.8 47,194 54.5 59.8 22,501 24,014 2.0 2.1 1,652,433 78.0 88.603) 1,222,425 1,276,265 2.5 2.6 635,584 63.9 69.8 370,278 396,302 3.5 3.8 1,129,318 38.8 46.1 407,543 471,213 4.8 5.6 118,140 11.2 15.4 12,731 17,288 0.6 0.8 278,710 44.7 53.0 111,709 129,217 12.7 14.7 15,261 64.9 70a0 9,400 10,013 6.3 6.7 94,604 79.6 83.9 72,546 75,801 19.3 20.2 56,661 50.2 56.3 26,810 29,635 5.0 5.6 19,882 80.4 84.0 15,433 15,991 5.1 5.3 31,638 44.5 49.7 13,296 14,683 2.9 3.2 3,765 48.3 58.1 1,703 2,019 2.6 3.0 29,105 51.6 59.0 12,892 14,282 5.5 6.0 61,436 30.9 39.7 17,247 21,647 9.4 11.8 36,896 49.1 55.4 17,917 19,906 10.4 11.6 15,401 76.7 80.4 11,483 11,954 8.9 9.3 20,134 60.4 65.0 11,013 11,599 5.3 5.5 266,110 12.6 21.7 29,845 50,043 2.5 4.2 6,727 100.0 100.0 6,727 6,727 6.8 6.8 9,871 84.5 88.6 8,099 8,438 2.9 3.1 64,977 46.6 52.5 28,692 31,970 3.2 3.6 Weighted Average Terms of External Public Debt by Sources in 1965(1 Table 12 Concessionary Element Contractual Rate of Grace Terms to as % of Grants and Loans Grants Amount Interest Period Maturity Discounted at: US$ 000s US$ 00s (%) (years) (years) 8% 10% S~~~~~~~~~~~~~~~~~~- - - - . . . .. . .. --- - - . . ..... V_ Publicly-issued bonds .................. 70,808 6.01 2.3 10.8 14.4 22.5 Privately-placed debt - ... .............. 799,610 5.80 1.6 7.0 8.4 13.9 Suppliers' Credits ......... ........... 538,643 5.67 1.6 8.0 10.0 16.0 Other .. ........... ........ - 260,967 6.06 1.5 5.1 5.2 9.6 Loans and Grants from International Organizations 141,650 814,952 4.44 6.0 27.8 44.2 52.5 World Bank ............-........... 552,700 5.50 4.8 22.0 17.8 28.7 IDA ............. ..- ... 186,200 0.75 10.0 49.9 80.2 85.6 Inter-American Development Bank - 52,075 6.12 3.4 13.1 8.7 17.4 Other . ....... 141,650 23,977 5.05 5.0 23.9 89.8 91.3 Bilateral official loans and grants(2) 1,999,110 1,362,514 3.26 7.0 27.3 77.9 81.6 of which: Australia .... 20,670 - - - - 100.0 100.0 Canada 41,630 65,202 3.40 5.2 32.2 61.8 67.2 France 109,900 43,972 3.41 1.9 16.7 80.0 82.5 Germany 121,660 124,293 3.59 5.2 19.7 65.8 70.6 Japan 67,910 104,546 5.75 5.4 14.4 45.3 51.4 United Kingdom 175,580 136,713 3.27 6.1 24.4 75.9 80.5 United States, 1,418,470 782,511 2.70 8.4 32.7 84.0 87.0 (11 Coverage is limited to the 59 developing countries shown in Tables 10 and lt. For that reason, the data on grants and loans represent only a part of total assistance provided from various sources. The concessionary element in bilateral assistance given to these 59 countries is not necessarily representative of the concessionary element in bilateral aid disbursements provided to all aid recipients. (2) From member countries of the World Bank and Switzerland. See also explanatory notes, page 64. SOURCE: World Bank and the OECD. Weighted Average Terms of External Public Debt by Sources in 1966(l) Table 13 Concessionary Element Contractual Rate of Grace Terms to as % of Grants and Loans Grants Amount Interest Period Maturity Discounted at: US$ 000s US$ 000s (%) (years) (years) 8% 10% Publicly-issued bonds . . .- 18,574 7.06 0.8 14.1 7.3 17.6 Privately-placed debt - 729,587 5.77 2.5 10.2 9.9 17.1 Suppliers' Credits, - 618,037 5.60 2.7 10.5 10.6 17.9 Other - 111,551 6.75 1.4 8.5 6.4 12.6 Loans and Grants from International Organizations 166,877 863,593 3.21 7.7 36.8 59.5 66.4 World Bank - 365,800 6.00 4.5 22.1 15.9 27.0 IDA . .. - 452,490 0.75 10.5 49.7 79.5 84.9 Inter-American Development Bank - 10,060 6.00 3.8 16.8 -0.4 10.1 Other . . . . . 166,877 35,243 4,96 6.1 28.8 87.6 89.6 Bilateral official loans and grants(2) 1,849,436 1,973,167 2.62 7.6 28.6 74.8 78.9 of which: Australia ..... , . ...... 22,490 - - - - 100.0 100.0 Canada 136,560 23,376 1.40 8.3 40.8 95.2 96.1 France ... ..... . 125,500 56,421 3.72 3.5 19.4 79.0 81.7 Germany. 46,390 183,647 3.36 5.9 21.0 46.4 54.0 Japan .. ............... 89,110 161,621 5.05 5.4 15.3 43.9 49.8 United Kingdom 130,050 253,854 0.44 8.9 25.2 77.4 82.2 United States . 1,269,000 1,188,625 2.59 8.4 33.9 79.1 82.8 (1) Coverage is limited to the 59 developing countries shown in Tables 10 and 11. For that reason, the data on grants and loans represent only a part of total assistance provided from various sources. The concessionary element in bilateral assistance given to these 59countries is not necessarily representative of the concessionary element in bilateral aid disbursements provided to all aid recipients. (2) From member countries of the World Bank and Switzerland. See also explanatory notes, page 64. SOURCE: World Bank and the OECD. Flow of NetV) Financial Resources From IDA Part I Countries to Developing Countries and Multilateral Institutions Table 14 (Millions of US Dollars) Official Private Country 1961 1962 1963 _1964 1965 1966 1967(2 1961 1962 1963 1964 1965 1966 1967(2) Australia ..... 71 74 97 104 122 128 171 - - - 15 15 8 15 Austria ...... 2 14 2 15 34 37 38 18 17 4 7 14 13 9 Belgium ..... 92 70 80 71 102 81 99 72 48 95 93 120 97 55 Canada.,.._. 62 54 98 128 124 212 213 26 55 33 14 45 55 40 Denmark ..... 8 7 10 11 13 26. 28 25 7 1 21 2 -2 -3 Finland. .-. ... 2 2 2 4 - (2) (2) - - - - - - - France ..... 944 977 851 831 752 745 831 463 418 391 529 547 575 513 Germany ..... 618 468 437 423 472 490 549 221 182 167 284 255 248 594 Italy ...... 80 106 105 49 88 122 203 177 284 216 188 178 510 66 Japan....... 107 87 140 116 244 285 391 275 199 127 174 242 384 465 Kuwait ...... 66 3 129 119 62 86 102 - - - - - - - Notherlands .... 56 65 38 49 70 94 114 144 49 97 69 169 160 114 Norway ...... 9 7 21 17 12 13 16 18 - 1 6 27 4 15 Sweden-.... 8 19 23 33 38 57 60 44 19 31 34 35 51 61 United Kingdom. 457 421 415 493 481 526 500 442 324 306 425 518 500 480 United States .. 3,447 3,536 3,699 3,445 3,627 3,660 3,723 1,102 819 880 1,325 1,893 1,323 1,844 Total. .6,029 5,910 6,147 5,908 6241 6,564 7,40 3,02-7 2,21 239 ,14 4,060 3,926 4,268 (1) Net of Amortization. (21 Preliminary. Data for South Africa are not available, while aid from Luxembourg has been very small. Figures in pareatheses are crude estimates. Unavailable figures indicated by -. SOURCE: DAC for all countries escept Finland and Kuwait, for which communications from their governments are the source. Bond Issues Placed Internationally by Market and Country of Borrowing Entity(') (Millions of US Dollars) 1966 1967 First Half 1968 (P) New York London(2) Other(3) Total New York London(2) Other(3) Total New York London(2) Other(3) Total .. ~ ~ ~ ~ - - --- -- - - --- - . .. .... .. . .. . ...... \ @ \ _.. _. . Industrialized Countries Europe Austria .- - 38.2 38.2 - - 80.5 80.5 - - 168.3 168.3 Belgium .- - 30.0 30.0 - - 32.8 32.8 - - - - Denmark .- ...- 47.6 47.6 - - 72.0 72.0 - - 50.8 50.8 Finland - . .- 4.0 4.0 - - 40.0 40.0 - - 28.5 28.5 France - - 46.3 46.3 - 157.2 157.2 - - 31.9 31.9 Germany. - - - - - 13.1 13.1 - - - - Iceland 6.0 - - 6.0 - 18.0 18.0 - 4.8 -- 4.8 Ireland - 14.0 33.6 47.6 - - - - - - - Italy .- - 40.0 40.0 - - 50.0 50.0 - - 30.0 30.0 Luxembourg.- 264.1 264.1 - - 233.3 233.3 - - - Netherlands .- - 36.9 36.9 - - 95.0 95.0 - - 80.0 80.0 Norway .- - 20.0 20.0 - - 95.5 95.5 - - 24.4 24.4 Sweden .- - 34.0 34.0 - - 30.0 30.0 - - - - Switzerland - - 2.8 2.8 - - - - - - - - United Kingdom(6) - 14.0 22.6 36.6 - 1.4 68.2 69.6 - - 18.6 18.6 Others Australia .- - 25.0 25.0 - 39.2 61.6 100.8 - - 42.0 42.0 Canadat7) 943.2(7) - - 943.2 1,018.0(7) - - 1,018.0 632.0(7) - 162.9 794.9 Japan. 5.5 - - 5.5 15.0 - - 15.0 - - 127.0 127.0 New Zealand ............. - 33.6 25.0 58.6 - 42.0 40.2 82.2 - - 14.4 14.4 South Africa . - - 25.0 25.0 - - 62.5 62.5 - - 30.0 30.0 United States ..- - 564.3 564.3 - - 545.0 545.0 - - 1,315.8 1,315.8 Sub-Total . . 954.7 61.6 1,259.4 2,275.7 1,033.0 82.6 1,694.9 2,810.5 632.0 4.8 2,124.6 2,761.4 Multilateral European Institutions Council of Europe - - 6.0 6.0 - - - - - - - - Eurofima() .- - 6.9 6.9 - - 41.9 41.9 - - 9.3 9.3 European Coal and Steel Community .- - 103.0 103.0 - - 45.0 45.0 - - 39.0 39.0 European Investment Bank - - 138.5 138.5 - - 154.5 154.5 - - 94.2 94.2 Interfrigo9) .- - 6.9 6.9 - - - - - - - - Sub-Total .- - 261.3 261.3 - - 241.4 241.4 - - 142.5 142.5 Total . ... 954.7 61.6 1,520.7 2,537.0 1,033.0 82.6 1,936.3 3,051.9 632.0 4.8 2,267.1 2,903.9 : S:=::::::::-: - ::d:: : ._ :-:: - : :::::7::7: -7 : :: ==: .---- ::: := =:= =:-:: : :::-::- :: :.-::------:- :::::_: :---:-:-::::_-:: Table 15 1966 1967 First Half 1968 (P) New York London(2) Other(3) Total New York London(?)- Other(3) Total New York London(2) Otherl3l Total International Development Institutions World Bank ........ 175,0(4) - 282.515) 457.5 400.0l4) - 323.7(5) 723.7 1 50.0l(4 283.35) 433.3 Inter-American Develop- ment Bank......... - - 100.6 100.6 110.0 - 36.0 146.0 - -_00 Sub-Total. .~..... 175.0 - 383.1 558.1 510.0 - 359.7 869.7 150.0 - 283.3 433.3 Developing Countries Algeria. .. ...... 15.0 - - 15.0 -- - - -- - Argentina. . ... 3.5 - - 3.5 - - 25.0 25.0 25.0 -- 25.0 Bahamas .... ..... 14.0 - - 14.0 - - - -- -- - Brazil .......- - - - 5.0 5.0 Colombia ............0.5 -- 0.5 - -- - East African Community..-- - - - 16.8 - 16.8 Gabon........2.4 2.4 - - - - - - - - Israel ... .... .. 60.7 - 0.8 61.5 203.1 - 15.0 218.1 5.0 - - 5.0 rvory Coast ......... - - - - - - - - 16.1 16.1 Jamaica ...... .... 7.5 8.4 - 15.9 - - - - - 7.2 - 7.2 Malaysia .... ...... - - - - 21.0 - 21.0 - - - - Mexico............ 15.7 - 45.0 60.7 6.2 - 85.0 91.2 9.0 - 72.0 81.0 Panama..... ._ ... ... - - - 7.5 - - 7.5 - - - - Peru ............ 10.2 - 24.5 34.~7 11.3 - 5.8 17.1 - --- Philippines ......- - - - 8.0 - - 8.0 - -- - Portugal .......... 12.0 - 29.0 41.0 - - 46.0 46.0 -. - 5.0 5.0 Spain........... - - - - - - 53.0 53.0 - - - - Thailand ......... - 1.0 - - 1.0 - -- - Venezuela. . ...... 3.0 - 0.7 3.7 1.1 - - 1.1 - -- - Sub-Total ........ 141.6 8.4 102.4 252.4 238.7 21.0 229.8 489.5 39.0 24.0 98.1 161.1 Total. . ........ 316.6 8.4 485.5 810.5 748.7 21.0 589.5 1.359.2 189.0 24.0 381.4 594.4 Recapitulation International Development Institutions......... 175.0 .-- 383.1 558.1 510.0 - 359.7 869.7 150.0 - 283.3 433.3 Developing Countries .... 141.6 8.4 102.4 252.4 238.7 21.0 229.8 489.5 39.0 24.0 98.1 161.1 Total. ........ 316.6 8.4 485.5 810.5 748.7 21.0 589.5 1,359.2 189.0 24.0 381.4 594.4 Advanced Countries .... 954.7 61.6 1,259.4 2,275.7 1,033.0 82.6 1,694.9 2,810.5 632.0 4.8 2,124.6 2,761.4 Multilateral Institutions ... - - 261.3 261.3 - - 241.4 241.4 - - 142.5 142.5 Total .... .... 954.7 61.6 1,520.7 2,537.0 1,033.0 82.6 1,936.3 3,051.9 632.0 4.8 2,267.1 2,903.9 Grand Total.........1,271.3 70.0 2,006.2 3,347.5 1,781.7 103.6 2,525.8 4,411.1 821.0 28.8 2,648.5 3,498.3 (P) Preliminary figures for first half of 1968. (1) includes issues both publicly offered and privately placed. (2) Excluding Euro-bond issues. (31 Includes Canada, Continental Europe & the Euro-issue market. (41 Redemptions and repurchases of World Bank bonds sold on the New York market amounted to $35.2 million in 1966, $46.9 million in 1967 and $171.1 million in the first half of 1968 (includes amounts paid in sinking fund to all US dollar issues). (5l~ Redemptions and repurchases of World Bank bonds sold outside the United States amounted to $190.9 million in 1966, $195.4 million (includes $6.0 million of devalued debts) in 1967 and $178.4 million in the first half of 1968 (includes amounts paid in sinking fund to all US dollar issues). 161 Issues by domestic companies operating mainly outside the country. 171 Redemptions and repurchases of Canadian bonds and debentures held by non-residents amounted to $480 million in 1966 and $329 million in 1967. W5'Soci6td Europ6enne pour le Financement de Mat6riel Ferroviaire. 19) Soci6t6 Ferroviaire Internetionale de Transport Frigorifiques. lie) Excludes short-term bond issue by lDB for $43 million placed with central banks in Latin America and Israel. SOURCE: World Bank. Average Yield of New Foreign and International Bonds Table 16 1967-First Half 1968 US Market Other Markets Inter- Inter- Month World American World American US Other of Bank Development Canada Banklt) Development Corpora- Industrial Developing Issue Bank Bank(2) tion(3) Countries(4) Countries(5) 1967 January - 5.50 5.92 - - 6.47 6.51 - February - - - - - 6.37 6.97 7.78 March - - 5.63 - - 5.62 6.87 - April 5.35 - - - - - 6.33 7.09 May - - 5.88 - - 6.03 6.58 7.55 June - - 6.37 5.04 - 6.97 6.61 7.05 July - - 6.45 - - 6.28 6.65 - August - - - - - 5.50 6.30 - Sept6mber 5.95 - 6.58 - - 6.63 6.83 7.42 October - - 6.68 6.00 - - 6.73 6.56 November - 6.55 6.96 - 7.25 - 6.43 7.55 December - - - - - 6.90 6.39 - 1968 January - - 7.05 7.22 - 6.65 7.72 8.48 February - - 7.03 - - - 6.85 - March 6.54 - - 6.96 - 6.25 6.50 8.16 April - - 7.09 - - 6.61 6.96 - May - - 7.63 5.25 - 6.28 7.48 - June - - - 6.91 - 6.13 6.97 7.25 il) Issues by World Bank in Canada, Germany, Sweden and Switzerland. (2) Issues by Inter-American Development Bank in Belgium. (3) Excludes issues carrying convertibility options into stock of parent US Corporation. (4) Includes issues by governments, public and private corporations and multilateral European institutions in international and foreign (Belgium, France, Germany, Italy, Luxembourg, Sweden, Switzerland, United Kingdom and United States) markets. (5) Includes issues by governments and public and private corporations in international and foreign (Switzer- land, United Kingdom and United States) markets. SOURCE: World Bank. Notes to Tables 6, 7, 8, 9, 10, 11, 12, 13 The figures on loans shown in Tables 6, 7, 8, 9, 10, interpreted only as an indication of orders of magni- OECD, Development Assistance Efforts and Policies, 11, 12 and 13 are based on information obtained by tude. The figures in the table are not comparable to 1967 Review. An extensive discussion and applica- the Bank from member countries by means of semi- those shown in previous Annual Reports due to dif- tion of the method is included in study by John annual reports on their external public debt payable ferences in coverage and revisions reflecting more Pincus for UNCTAD, Costs and Benefits of Aid: An in foreign currency or goods with an original maturity recent information. Empirical Analysis, 1967. of one year or more. External public debt consists Data on grants (included in Tables 8, 9, 10, 11, 12 fn these studies, calculations of costs and benefits of obligations of the central governments and their and 13) and "grant-like contributions" such as loans of external assistance have been made by discount- political subdivisions and agencies as well as private and other transfers of resources repayable in local ing future repayments according to average terms of debt guaranteed by the said governments and/or currencies, have been obtained from the OECD and loans based on Wcrld Bank or OECD data. Informa- their agencies, excluding IMF drawings. The coun- are based on reports from donor countries. In ac- tion on future public debt repayments is generally tries (and the East African Common Services Organi- cordance with UN and DAC practices, food assistance available to the Bank on a loan-to-loan basis. Calcu- zation) for which data are shown in these tables have repayable in local currencies has been treated as a lations of "present worth" of future debt repayments been included because relatively consistent and ac- grant. discounted on a loan-to-loan basis give somewhat curate statistics for the years shown are available. wore accurate results than discounting of average Data shown in Tables 8 and 9 pertain only to loan terms. Although loans are recorded by the time countries for which detailed information on disburse- Notes to Tables 10, 11, 12, 13 incurred (when loan agreements are signed), dis- ments and debt service payments for 1965 and 1966 The concessionary (or grant) element concept in bursement rates of loans are either known or can be were available. Although several malor debtor coun- development finance has been discussed and applied reasonably well estimated. Thus, data on both future tries such as Brazil, Turkey, Israel and Indonesia are in the following studies by private authors and official debt repayments and loan disbursements are avail- not included, incomplete information for these and institutions: able on a loan-to-loan basis, and their present worth other countries suggests that the relation between John Pincus (in Economic Aid and International can be calculated. Loan disbursements have been disbursements and debt service payments of the Cost Sharing, 1965), Goran Ohlin (in Foreign Aid projected according to actual disbursements or a countries included in Tables 8 and 9 is fairly repre- Policies Reconsidered, 1966), 1. M. D. Little and J. M. schedule whenever given; in the absence of a sched- sentative for all developing countries. Clifford (in International Aid, 1965), and H. G. John- ule, the disbursements were assumed to be equal to Table 6 provides data for an additional number of son (in Economic Policies Towards Less-Developed semi-annual amounts during the grace period or up countries which have been obtained from the best Countries, 1967). to the closing date, when the latter is known. published sources and from reports of creditor coun- The method was also used in the following official Food assistance repayable in domestic currencies tries. This information is less reliable than the data pubiications: OECD, The Flow of Financial Resources has been considered as grants, in accordance with '2 -t shown in the main body of the table and must be to Less-Developed Countries, 1961-1965, and in UN and DAC practices. Appendices I I I Bank Appenidices Page A Balance Sheet ................................. ..... 68 B Comparative Statement of Income and Expenses. 70 C Statement of Subscriptions to Capital Stock and Voting Power .. 71 D Summary Statement of Loans ..... ....... ...... 73 E Funded Debt of the Bank .......... .......................... ... 75 F Notes to Financial Statements. ------ .................. 78 OPINION OF INDEPENDENT AUDITOR ............. ......... ..... 79 G Statement of Loans Signed During the Fiscal Year 1967/68 ......... 80 Balance Sheet June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Assets DUE FROM BANKS AND OTHER DEPOSITORIES Member currencies U nrestricted .............................. .................. ...................... $ 24,394,605 Subject to restrictions-Note B ............... ...................................... 107,867,115 $132,261,720 Non-member currency (Swiss francs) ..14,965,739 $ 147,227,459 INVESTMENTS Government obligations (At cost or amortized cost; face amount $303,897,919) $297,490,550 Time deposits ..508,830,779 Accrued interest ..19,512,678 825,834,007 RECEIVABLE ON ACCOUNT OF SUBSCRIBED CAPITAL (See Appendix C)-Note B Non-negotiable, non-interest-bearing, demand notes $351,854,274 Amounts required to maintain value of currency holdings .............................. .18,868,220 370,722,494 EFFECTIVE LOANS HELD BY BANK (See Appendix D) (Including undisbursed balance of $2,000,867,730) 7,205,511,055 ACCRUED CHARGES ON LOANS ..79,920,065 RECEIVABLE FROM PURCHASERS ON ACCOUNT OF EFFECTIVE LOANS AGREED TO BE SOLD (Including undisbursed balance of $25,417,361) ..36,143,165 UNAMORTIZED BOND ISSUANCE COSTS ..23,356,096 LAND AND BUILDINGS ..$ 32,341,000 Less-Reserve for depreciation ......... --..-................. 2,981,160 29,359,840 OTHER ASSETS (Including $30,078,213 special deposits)-Note C ........................ 32,392,261 SPECIAL RESERVE FUND ASSETS-Note D Due from Banks-member currency-United States $ 912 Investment securities-Obligations of United States Government and its Instrumentalities ($291,023,000 face amount; at cost or amortized cost) 290,805,242 Accrued loan commissions .................... 211,191 291,017,345 STAFF RETIREMENT PLAN ASSETS (Segregated and held in trust) ........................ ........ . .... 37,495,731 TOTAL ASSETS $9,078,979,518 Appeiidix A International Bank for Reconstruction and Development Liabilities, Reserves and Capital LIABILITIES Accrued interest on borrowings .................................... ....................... $ 54,452,197 Accounts payable and other liabilities ........................................ .................... 5,023,580 Due to International Development Association ................................. 42,700,000 Undisbursed balance of effective loans (See Appendix D) Held by Bank .................................................................................. 2,000,867,730 Agreed to be sold . ................... ...................... ........................... 25,417,361 2,026,285,091 Funded debt (See Appendix E) (Of this amount $486,275,239 is due within one year) ...... ............................. ....... 3,289,568.137 RESERVES Special reserve-Note D ................ ......................... ............ .......... $ 291,017,345 Supplemental reserve against losses on loans and guarantees and from currency devaluations-Note E ............................... ....................... 868,984,038 1,160,001,383 STAFF RETIREMENT PLAN RESERVE 37,495,731 CAPITAL Capital stock (See Appendix C)-Note F Authorized 240,000 shares of $100,000 par value each Subscribed 229,419 shares ....................................................................... $22,941,900,000 Less-Uncalled portion of subscriptions-Note G ............. ................................. 20,647,710,000 2,294,190,000 Payments on account of pending subscriptions 139,898 Net income-Note E From July 1, 1967 to June 30, 1968 169,123,501 TOTAL LIABILITIES, RESERVES AND CAPITAL $9,078,979,518 Comparative Statemeent of Appendix B International Bank for TIncome and Expeiises Reconstruction and Development For the Fiscal Years Ended June 30, 1967 and June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F July 1-June 30 1966/67 1967/68 Income Income from investments .................... $ 71,955,494 $ 65,730,830 Income from loans: Interest ...................... 247,195,497 274,903,562 Commitment charges .............. .............. 7,688,716 8,006,946 Commissions ..........,.,.. 684,528 595,027 Service charges .. ..................... .................................... 102,002 84,603 Other income ......... 4,302,548 7,567,993 GROSS INCOME ................................ $331,928,785 $356,888,961 Deduct-Amount equivalent to commissions appropriated to Special Reserve-Note D ................... 684,528 595,027 Gross Income Less Reserve Deduction ... . ................. ........... $331,244,257 $356,293,934 Expenses Administrative expenses: Personal services ............................................ $ 16,383,600 $ 18,360,853 Contributions to staff benefits ........... ..................................... 2,581,440 4,246,306 Fees and compensation . .................................................. 1,218,522 1,404,538 Representation ........................ , 236,981 200,440 Travel ....... . ... ............... 3,454,738 3,983,036 Supplies and material ....... ................................................ 257,790 260,646 Office occupancy ............. .............................................. 1,875,570 1,880,348 Communication services ............................... ..................... 924,462 943,132 Furniture and equipment ........................................ ........... 662,205 497,302 Books and library services ........................................ ........... 262,954 298,866 Printing .......................... ....................................... 460,823 493,625 Insurance ....... .., ..................... 136,727 137,890 Other expenses ............... ........................ ............... 32,380 26,242 TOTAL ...................................................... ........... $ 28,488,192 $ 32,733,224 Deduct-Amounts charged to International Development Association ......... 4,216,061 4,216,061 TOTAL ADMINISTRATIVE EXPENSES ....... ............................. $ 24,272,131 $ 28,517,163 Services to member countries ........... ...................................... 6,511,926 5,248,847 Interest on borrowings ................. , , 128,701,615 151,134,546 Bond issuance and other financial expenses ................................ 2,092,885 2,265,291 Discount on sale of loans ............ ..................... ................. 69,473 4,586 GROSS EXPENSES ............................................ I ........... $161,648,030 $187,170,433 Net Income-Note E ............... ..............I................... ... $169,596,227 $169,123,501 *Effective July 1,1967, the Executive Directors approved a change in budgetary procedure whereby all administrative expenses of the Bank and the International Development Association will be paid by the Bank. An annual "management fee" is charged to the Associa- tion based on the Association's expenses in fiscal year 1967 amounting to $4,216,061. This fee which replaces the previous method of reimbursing the Bank for actual expenses paid on behalf of the Association is pro rated and paid on a monthly basis by the Association. The administrative expenses for the Bank and the Association for the corresponding period of the previous fiscal year have been com- bined to render the statement on a comparable basis. Statemenit of Suibscriptionis to Capital Stock Appendix C International Bank for anid Votinig Power Reconstruction and Development June 30, 1968 Expressed in United States Currency (in thousands)-See Notes to Financial Statemnents, Appendix F Amounts Paid in In currency In non- of member negotiable, other than non-interest- Subject to call Subscriptions United bearing, to meet Voting Power In United States demand obligations Percent Amount States dollars notes of Bank Number Percent Member Shares of total (Note F) dollars (Note B) (Note B) (Note G) of votes of total Afghanistan ........ 300 .13 $ 30,000 $ 300 $ 1,200 $ 1,500 $ 27,000 550 .21 Algeria . ......... 800 .35 80,000 800 72 7,128 72,000 1,050 .41 Argentina. . _........ 3,733 1.63 373,300 3,733 27,000 6,597 335,970 3,983 1.55 Australia ......... . 5,330 2.32 533,000 5,330 47,970 - 479,700 5,580 2.18 Austria ..........1,867 .81 186,700 1,867 14,202 2,601 168,030 2,117 .83 Belgium. .. 4,500 1.96 450,000 4,500 40,500 - 405,000 4,750 1.85 Bolivia .---....... 210 .09 21,000 210 13 1,877 18,900 460 .18 Brazil. . ...... .... 3,733 1.63 373,300 3,733 33,597 - 335,970 3,983 1.55 Burma....._...... 400 .17 40,000 400 1,207 2,393 36,000 650 .25 Burundi ............. 150 .07 15,000 150 9 1,341 13,500 400 .16 Cameroon........... 200 .09 20,000 200 18 1,782 18,000 450 .17 Canada.. ........... 7,920 3.45 792,000 7,920 71,280 - 712,800 8,170 3.19 Central African Republic ..... 100 .04 10,000 100 39 861 9,000 350 .14 Ceylon ............. 827 .36 82,700 827 908 6,535 74,430 1,077 .42 Chad. . .......... 100 .04 10,000 100 13 887 9,000 350 .14 Chile ......- 933 .41 93,300 933 8,397 - 83,970 1,183 .46 China .............. 7,500 3.27 750,000 7,500 3,178 64,322 675,000 7,750 3.02 Colombia. .~~......... 933 .41 93,300 9,330 - - 83,970 1,183 .46 Congo (Brazzaville)........ 100 .04 10,000 100 19 881 9,000 350 .14 Congo, Democratic Republic of* 600 .26 60,000 600 694 - 54,000 850 .33 Costa Rica ....... .. 107 .05 10,700 467 603 - 9,630 357 .14 Cyprus. 150 .07 15,000 150 13 1,337 13,500 400 .16 Dahomey ........100 .04 10,000 100 19 881 9,000 350 .14 Denmark............. 1,733 .76 173,300 1,733 14,364 1,233 155,970 1,983 .77 Dominican Republic. .... 133 .06 13,300 133 483 714 11,970 383 .15 Ecuador ............. 171 .07 17,100 1,710 - - 15,390 421 .16 El Salvador ........... 107 .05 10,700 287 783 -9,630 357 .14 Ethiopia_ ......---- 100 .04 10,000 1,000 - - 9,000 350 .14 Finland . ... .... . 1,333 .58 133,300 1,333 9,759 2,238 119,970 1,583 .62 France .............10,500 4.58 1,050,000 10,500 94,500 - 945,000 10,750 4.20 Gabon ...... ...... 100 .04 10,000 100 21 879 9,000 350 .14 Gambia, The ......._ 53 .02 5,300 53 5 472 4,770 303 .12 Gqrmany* .......... 12,800 5.58 1,280,000 12,800 101,400 13,800 1,152,000 13,050 5.09 Ghana'. ........... 467 .20 46,700 467 2,702 1,051 42,030 717 .28 Greece............. 667 .29 66,700 667 6,003 - 60,030 917 .36 Guatemala . .......... 107 .05 10,700 467 603 -9,630 357 .14 Goinea ............. 200 .09 20,000 200 1,800 - 18,000 450 .17 Guyana.. .. ........ 160 .07 16,000 160 15 1,425 14,400 410 .16 Haiti .............. 150 .07 15,000 150 41 1,309 13,500 400 .16 Honduras ........... 80 .03 8,000 620 - 180 7,200 330 .13 Iceland ......... ... 150 .07 15,000 1,266 38 196 13,500 400 .16 India .............. 8,000 3.49 800,000 8,000 20,551 51,449 720,000 8,250 3.22 Indonesia"........... 2,200 .96 220,000 2,200 198 7,449 198,000 2,450 .96 Iran .......... .... 1,286 .56 128,600 1,286 8,100 3,474 115,740 1,536 .60 Iraq . ..... . .... 640 .28 64,000 640 1,350 4,410 57,600 890 .35 Ireland ............. 853 .37 85,300 853 5,474 2,203 76,770 1,103 .43 Israel ............. 959 .42 95,900 959 2,997 5,634 86,310 1,209 .47 Italy ... .......... 6,660 2.90 666,000 6,660 59,940 - 599,400 6,91 0 2.70 Ivory Coast ........... 200 .09 20,000 200 666 1,134 18,000 450 .17 Jamaica ............ 320 .14 32,000 895 22 2,283 28,800 570 .22 Japan .............. 7,726 3.37 772,600 7,726 69,534 - 695,340 7,976 3.11 Jordan ............. 163 .07 16,300 163 52 1,415 14,670 413 .16 Kenya ........ ... 333 .14 33,300 333 771 2,226 29,970 583 .23 Korea~ ......... .... 533 .23 53,300 533 1,130 2,521 47,970 783 .31 Kuwait ... ....... 667 .29 66,700 667 6,003 - 60,030 917 .36 (continued) Statement of Subscriptions to Capital Stock Appendix C International Bank for and Votinig Power (continued) Reconstruction and Development June 30, 1968 Expressed in United States Currency (in thousands)-See Notes to Financial Statements, Appendix F Amounts Paid in In currency In non- of member negotiable, other than non-interest- Subject to call Subscriptions United bearing, to meet Voting Power - In United States demand obligations Percent Amount States dollars notes of Bank Number Percent Member Shares of total (Note F) dollars (Note B) (Note B) (Note G) of votes of total Laos ......................... 100 .04 $ .10,000 $ 100 $ 900 $ - $ 9,000 350 .14 Lebanon ............... ....... 90 .04 9,000 900 - - 8,100 340 .13 Liberia ......................... 213 .09 21,300 213 13 1,904 19,170 463 -.18 Libya ......................... 200 .09 20,000 2,000 - - 18,000 450 .17 Luxembourg .................. 200 .09 20,000 200 1,800 - 18,000 450 .17 Malagasy Republic ............. 200 .09 20,000 200 30 1,770 18,000 450 .17 Malawi . ...................... 150 .07 15,000 150 12 1,338 13,500 400 .16 Malaysia ................. ... 1,333 .58 133,300 1,333 9,000 2,997 119,970 1,583 .62 Mali ......................... 173 .08 17,300 173 1,557 - 15,570 423 .16 Mauritania .......... .......... 100 .04 10,000 100 19 881 9,000 350 .14 Mexico ............ ............ 2,080 .91 208,000 2,080 18,720 - 187,200 2,330 .91 Morocco ....................... 960 .42 96,000 960 99 8,541 86,400 1,210 .47 Nepal* ................. ....... 100 .04 10,000 100 9 670 9,000 350 .14 Netherlands .................... 5,500 2.40 550,000 5,500 49,500 - 495,000 5,750 2.24 New Zealand ....... ........... 1,667 .73 166,700 1,667 129 14,874 150,030 1,917 .75 Nicaragua ... ............... 80 .03 8,000 440 360 - 7,200 330 .13 Niger ....... ............... 100 .04 10,000 100 19 881 9,000 350 .14 Nigeria ........................ 667 .29 66,700 667 256 5,747 60,030 917 .36 Norway ... 1,600 .70 160,000 1,600 14,400 - 144,000 1,850 .72 Pakistan ....................... 2,000 .87 200,000 2,000 2,049 15,951 180,000 2,250 .88 Panama ........................ 90 .04 9,000 126 - 774 8,100 340 .13 Paraguay ...................... 60 .03 6,000 60 540 - 5,400 310 .12 Peru ......................... 635 .28 63,500 3,785 26 2,539 57,150 885 .34 Philippines ................ .... 1,173 .51 117,300 3,873 6,300 1,557 105,570 1,423 .56 Portugal ...................... 800 .35 80,000 800 4,330 2,870 72,000 1,050 .41 Rwanda ............. ........ 150 .07 15,000 150 1,350 - 13,500 400 .16 Saudi Arabia ... ............. 960 .42 96,000 960 22 8,618 86,400 1,210 .47 Senegal ........................ 333 .14 33,300 333 30 2,967 29,970 583 .23 Sierra Leone* ...... . .......... 150 .07 15,000 150 12 1,146 13,500 400 .16 Singapore ...................... 320 .14 32,000 320 1,152 1,728 28,800 570 .22 Somalia ........ . ........ 150 .07 15,000 150 14 1,336 13,500 400 .16 South Africa ......... . ...... 2,133 .93 213,300 2,133 18,012 1,185 191,970 2,383 .93 Spain ........................ 2,667 1.16 266,700 2,667 20,401 3,602 240,030 2,917 1.14 Sudan .............. .......... 600 .26 60,000 600 1,800 3,600 54,000 850 .33 Sweden ........ .............. 2,400 1.05 240,000 2,400 21,600 - 216,000 2,650 1.03 Syrian Arab Republic ........... 400 .17 40,000 400 44 3,556 36,000 650 .25 Tanzania .............. ....... 333 .14 33,300 333 71 2,926 29,970 583 .23 Thailand ....................... 1,013 .44 101,300 5,683 158 4,289 91,170 1,263 .49 Togo ......................... 150 .07 15,000 150 23 1,327 13,500 400 -.16 Trinidad and Tobago .......... 267 .12 26,700 747 24 1,899 24,030 517 .20 Tunisia** ...................... 300 .13 30,000 300 74 2,626 27,000 550 .21 Turkey ......................... 1,150 .50 115,000 1,150 271 10,079 103,500 1,400 .55 Uganda ................... .... 333 .14 33,300 333 50 2,947 29,970 583 .23 United Arab Republic .......... 1,421 .62 142,100 1,421 128 12,661 127,890 1,671 .65 United Kingdom .26,000 11.33 2,600,000 26,000 234,000 - 2,340,000 26,250 10.25 United States 63,500 27.68 6,350,000 635,000 - - 5,715,000 63,750 24.89 Upper Volta .100 .04 10,000 100 19 881 9,000 350 .14 Uruguay .2 8 0 280 .12 28,000 1,225 438 1,137 25,200 530 .21 Venezuela ............. ..... 1,867 .81 186,700 11,908 79 6,683 168,030 2,117 .83 Viet-Nam ...................... 427 .19 42,700 427 3,843 - 38,430 677 .26 Yugoslavia ..................... 1,067 .46 106,700 7,173 3,497 - 96,030 1,317 .51 Zambia ........................ 533 .23 53,300 533 48 4,749 47,970 783 .31 TOTALS ................... 229,419 100.00 $22,941,900 $845,984 $1,077,484 $351,854 $20,647,710 256,169 100.0( *Amounts aggregating the equivalent of $18,868,220 receivable and of $387,261 payable as a result of revaluation of these currencies, are not included in thE "Amounts Paid in" columns. **$73,000 has been received from Tunisia on account of increase in subscription which is in process of completion and amounts aggregating the equivalent o $66,898 have been received from Botswana and Lesotho on account of capital subscriptions pending admission to membership. Suiiimmary Statement of L-.oans Appendix D International Bank for Reconstruction and Development June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Effective loans held by Bank Members in whose territories loans Disbursed Undisbursed Loans not yet have been madel1) portion portion)2) Total(O) effective(4) Algeria ................................ $ 15,970,000 $ - $ 15,970,000 $ Argentina . ............... 106,806,658 71,041,346 177,848,004 Australia ........ .................... 179,651,000 - 179,651,000 7,000,000 Austria .... ........................... 53,329,052 - 53,329,052 Belgium ............................... 35,470,346 - 35,470,346 Brazil ................................ 159,635,308 243,792,326 403,427,634 22,000,000 Burma ...... . ......... ......... 19,828,337 - 19,828,337 Cameroon ............................. 15,604 6,984,396 7,000,000 Ceylon ............................. _ 27,129,052 4,000,000 31,129,052 Chile ................................ 85,781,796 67,412,270 153,194,066 China ................................ 31,785,278 64,083,393 95,868,671 Colombia ............................ 274,398,390 77,035,242 351,433,632 44,500,000 Congo (Brazzaville) . ............... 10,934,647 19,065,353 30,000,000 Costa Rica . - ......................... 35,620,235 - 35,620,235 3,000,000 Cyprus ..... ........................ 13,694,212 2,445,000 16,139,212 Denmark .............................. 42,791,174 - 42,791,174 Ecuador............................... 33,141,881 6,666,128 39,808,009 El Salvador ............................ 28,013,758 16,878 28,030,636 2,800,000 Ethiopia .............................. 35,690,389 5,919,951 41,610,340 13,500,000 Finland ...................... ......... 133,731,987 5,996,812 139,728,799 France ............................... 17,052,300 - 17,052,300 Gabon ............................... 11,546,683 38,317 11,585,000 1,800,000 Ghana ...... ..................... 45,994,831 336,169 46,331,000 Greece ........................... - - - 12,500,000 Guatemala ..... .... __ ........... 6,813,203 12,191,797 19,005,000 7,000,000 Guinea ............ ............ 1,686,445 13,555 1,700,000 Haiti ................................ 886,000 - 886,000 Honduras ............................. 12,364,545 18,693,455 31,058,000 7,500,000 Iceland ...... .................... _ 12,851,138 8,107,680 20,958,818 India ................................ 511,460,195 138,693,410 650,153,605 Iran ................... ............. 127,925,519 68,725,188 196,650,707 25,000,000 I raq .7,979,54..................... _ 7,979,548 14,920,452 22,900,000 Israel ................................ 85,264,530 15,553,470 100,818,000 Italy .. .............................. 126,209,058 19,698,160 145,907,218 - Ivory Coast ...................... - - - 5,800,000 Jamaica .................. ....... ..... 14,865,634 20,885,897 35,751,531 Japan .................. ........ ..... 623,931,575 78,646,049 702,577,624 Kenya, Tanzania and Uganda(5) ......... 29,970,433 21,029,567 51,000,000 Korea ........................... - 5,000,000 5,000,000 Lebanon ..................... ........ 20,313,084 - 20,313,084 Liberia .... ........................... 3,750,477 199,523 3,950,000 Malagasy Republic ... ................. - 4,800,000 4,800,000 Malaysia ... .................... 97,012,413 78,162,208 175,174,621 14,000,000 Mexico ................ ............... 437,725,562 70,630,276 508,355,838 115,000,000 Morocco ...... __ .................... 30,021,634 25,727,794 55,749,428 New Zealand ............... ........... 73,977,331 22,084,227 96,061,558 Nicaragua .... ........................ 20,608,976 4,662,371 25,271,347 15,250,000 Nigeria ................................ 102,140,231 50,464,763 152,604,994 Norway................................ 92,525,329 1,712,200 94,237,529 Pakistan ............................... 219,451,623 130,555,055 350,006,678 Panama ............................... 9,061,956 35,044 9,097,000 Paraguay ..................... ........ 1,024,705 5,835,295 6,860,000 Peru ................................ 111,147,703 53,909,877 165,057,580 Philippines ............................ 82,013,131 46,839,341 128,852,472 Portugal ............................... 38,922,128 16,902,623 55,824,751 Senegal ............................... 375,283 3,380,056 3,755,339 Sierra Leone ..... .................... 3,452,000 - 3,452,000 Singapore ............................. 11,274,186 36,945,814 48,220,000 South Africa ............. ........... 18,986,683 1,643,237 20,629,920 Spain ......................... ...... 94,113,835 91,027,577 185,141,412 Sudan ................................ 73,344,411 15,068,589 88,413,000 24,000,000 Tanzania .............................. - 5,110,000 5,110,000 Thailand . ................ ..... 133,206,586 57,575,385 190,781,971 29,000,000 (continued) Sunmmary Statement of Loans (continued) Appendix D International Bank for Reconstruction and Development June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Effective loans held by Bank Members in whose territories loans Disbursed Undisbursed Loans not yet have been made(') portion portion() Total(') effective(') Trinidad and Tobago .$ 534,718 $ 12,800,282 $ 13,335,000 $ Tunisia ........ ....................... 10,448,352 22,463,677 32,912,029 Turkey . ... 29,895,025 2,475,974 32,370,999 United Arab Republic .......... ...... 33,500,000 - 33,500,000 United Kingdom . .......... __ ....... 104,416,509 4,627,884 109,044,393 Uruguay ........ ..................... 57,256,348 7,981,652 65,238,000 Venezuela ...................i......... 177,269,584 55,921,191 233,190,775 Yugoslavia ............................ 179,261,966 63,126,529 242,388,495 50,000,000 Zambia ........................ ....... 5,992,968 11,207,025 17,199,993 _ SUB-TOTALS MEMBERSO') .. . ........ $5,233,245,478 $1,900,867,730 $7,134,113,208 $399,650,000 International Finance Corporation ....... 100,000,000 100,000,000 TOTALS ............................. $5,233,245,478 $2,000,867,730 $7,234,113,208 $399,650,000 LESS: Exchange adjustments ........ 28,602,153 28,602,153 $5,204,643,325 $7,205,511,055 Summary of Currencies Repayable on Effective Loans Held by Bank Currency Amount (i) Loans are made (a) to the member or (b) to a political subdivision --- --.--- - .---------- --- ---------- or a public or a private enterprise in the territories of the rnember with Argentine pesos .............................. $ 1,089,718 the member's guarantee. A loan has also been made to International Australian dollars ................. __ ......... 72,825,349 Finance Corporation. Austrian schillings .. ........... ... 20,438,287 Belgian francs ....................... . 78,375,081 1 2) This does not include $25,417,361 of effective loans which the Burmese kyats .1. . .- 1,391,380 Bank has agreed to sell. Of the undisbursed balance, the Bank has entered into irrevocable commitments to disburse $26,527,796. Canadian dollars .................. ...... 184,531,303 Ceylon rupees ................................. 295,105 (3) Original principal amount of loans signed ..... $11,517,527,893 Danish kroner ..... ...... -- ........., ...... 19,910,340 DEDUCT: Deutsche mark ......................... ...... 601,947,783 (a) Cancellations, terminations Finnish markkas .............. ................ 11,335,144 and refundings ........... $ 270,674,011 French francs ............................ .... 145,129,606 (b) Principal repayments to the New Ghana cedis . ............................. 3,513,938 Bank ...................... 1,499,649,139 Indian rupees ............................ 38,725,352 (c) Loans sold or agreed to be Iranian rials ........ __ ................... 11,772,777 sold of which $25,417,361 Iraqi dinars ............... ............. 1,908,424 has not yet been disbursed .. 2,113,441,535 Irish pounds ................. ................. 8,541,084 (d) Loans not yet effective ..399,650,000 4,283,414,685 Israel pounds .......... . 3,751,418 $ 7,234,113,208 Italian lire .......... . 107,342,878 LESS:Exchange adjustments 28,602,153 Japanese yen ........................ ....... 104,931,394 Effective loans held by Bank $ 7,205,511,055 Kuwaiti dinars ... ....... ... 7,319,168 (4) Agreements providing for these loans have been signed, but the Luxembourg francs . 2,813,067 loans do not become effective and disbursements thereunder do not Malaysian dollars ..........................-11,279,588 start until the borrowers and guarantors, if any, take certain action Mexican pesos .2 4,1 5 0,3 0 __ ..............24,150,304 and furnish certain documents to the Bank. The Bank has agreed to Netherlands guilders .114,243,862 sell $29,195,000 of loans not yet effective and thus the total of both Norwegian kroner .20,603,368 effective and non-effective loans sold or agreed to be sold is the Portuguese escudos .4,446,482 equivalent of $2,142,636,535. Pounds sterling .270,625,368 Singapore dollars. 123233.......................... () Loan shared by members shown. South African rand .30,356,449 Spanish pesetas ............... 24,184,630 Sudanese pounds .... . .......... ...... 2,653,082 Swedish kronor .............I.......... 48,743,436 Swiss francs .......................I......... 209,214,512 New Taiwan dollars . ..-............... 3,331,765 United States dollars ........................... 3,040,400,803 Disbursed portion of effective loans held by Bank $5,233,245,478 LESS: Exchange adjustments ........ ........ 28,602,153 $5,204,643,325 ADD: Undisbursed portion of effective loans held by Bank ........................ 2,000,867,730 Effective loans held by Bank . ......... ..... $7,205,511,055 Funded Debt of the Bank Appendix E International Bank for Reconstruction and Development June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F PAYABLE IN Principal Annual sinking Issue and maturity outstanding fund requirement(') United States Dollars 4 '%% Notes of 1964, due 1968-69 .......................................................... . $ 60,000,000 None' 41 y Twelve Year Bonds of 1960, due 1968-72 ............................................. 108,000,000 None* 5X,% Notes of 1966, due 1968 ............................................ .............. . 16,000,000 None* 6% Two Year Bonds of 1966, due 1968 .................. ......................... .. 100,000,000 None* 3%% Fifteen Year Bonds of 1954, due 1969 ...........-................... 50,000,000 5/s% Two Year Bonds of 1967, due 1969 ............................................... 100,000,000 None' 5 %% Two Year Bonds of 1967, due 1969 .................................. .............. 100,000,000 None' 5/% Notes of 1967, due 1969-70 . ......................................................... 16,000,000 None* 414% Notes of 1965, due 1970 .............................................. .............. 38,000,000 None* 6 %% Two Year Bonds of 1968, due 1970 ........................ ........................... 125,000,000 None* 4%4% Notes of 1965, due 1971 .............................. ................... ........ 9,375,000 None* 4%% Notes of 1966, due 1971 ........................................ ................... 8,000,000 None' 5%% Notes of 1967, due 1971 .......................... ......... ................ 16,000,000 None* 3x% Nineteen Year Bonds of 1952, due 1971 . ............................... 35,323,000 1968 $ 323,000 1969-70 $2,500,000 6%% Notes of 1968, due 1972 ......................................... .... 17,375,000 None' 3% Twenty-Five Year Bonds of 1947, due 1972 ..................... ...................... 103,435,000 1969 $5,935,000 1970-72 $7,500,000 6% Notes of 1967, due 1972 ........ .............. ................................ 5,000,000 None* 6%% Notes of 1968, due 1973 ......................................................... ... 12,000,000 None* 42%% Fifteen Year Bonds of 1958, due 1973 ................................................ . 73,460,000 1969 $3,460,000 1970-73 $5,000,000 3%% Twenty-Three Year Bonds of 1952, due 1975 ...................................... 33,440,000 1969 $ 940,000 1970-74 $1,500,000 3% Twenty-Five Year Bonds of 1951, due 1976 ............................................... 38,000,000 1969 $1,000,000 1970-75 $2,000,000 4/2% Twenty Year Bonds of 1957, due 1977 ................................... ........... 64,426,000 1969 $3,750,000 1970-76 $5,000,000 4y2% Fifteen Year Bonds of 1962, due 1977 ................................. ............ . 5,000,000 1973-77 $1,000,000 414% Twenty-One Year Bonds of 1957, due 1978 ..... .... ......... .............. 92,827,000 1968 $ 827,000 1969-71 $4,000,000 1972-77 $5,000,000 4X4% Twenty-One Year Bonds of 1958, due 1979 . ........................... 141,500,000 1969 $5,500,000 1970-77 $7,000,000 1978 $5,000,000 4y%4 Twenty-Threc Year Bonds of 1957, due 1980 ......................................... 55,101,000 1969 $1,750,000 1970-79 $3,000,000 1980 $1,500,000 34% Thirty Year Bonds of 1951, due 1981. .. ....................................... ..... 93,188,000 1968 $ 188,000 1969-73 $3,000,000 1974-80 $4,000,000 4%% Twenty Year Bonds of 1962, due 1982 .............................................. 100,000,000 1972-81 $5,000,000 5% Twenty-Five Year Bonds of 1960, due 1985 ..................................... 125,000,000 1970-79 $3,750,000 1980-84 $5,000,000 4/30 Twenty-Five Year Bonds of 1965, due 1990 ........................................... 200,000,000 1975-79 $6,000,000 1980-89 $7,000,000 5%% Twenty-Five Year Bonds of 1966, due 1991 ............................... ............. 175,000,000 1977-86 $5,500,000 1987-91 $6,500,000 5%% Twenty-Five Year Bonds of 1967, due 19920) .......................................... 160,950,000 1977-86 $8,000,000 1987-91 $9,000,000 5%% Twenty-Six Year Bonds of 1967, due 199303) ........................................ . 90,650,000 1978-92 $4,700,000 1993 $4,500,000 6/3% Twenty-Six Year Bonds of 1968, due 1994(3) .... ........................ ........... 63,700,000 1981-83 $5,000,000 1984-93 $6,000,000 6'/% Twenty-Six Year Bonds of 1968, due 1994 .... ........... 15,000,000 1981-83 $ 500,000 1984-93 $ 600,000 SUB-TOTAL ...... ............................................... .... $2,446,750,000 )5 Belgian Francs 5% Ten Year Bonds of 1959, due 1969 (BF500,000,000) ................. $ 10,000,000 None SUB-TOTAL ..........$................................... ............................. $ 10,000,000 Canadian Dollars 3y/% Fifteen Year Bonds of 1954, due 1969 (Can$16,699,500) .............................. $ 15,447,053 5X% Twenty-Five Year Bonds of 1965, due 1990 (Can$25,000,000) ........................ . . 23,125,023 1978-89 Can$500,000 5Y%% Twenty-Five Year Bonds of 1966, due 1991 (Can$19,900,000)2) . . . . . . . . ..3... 18,407,518 None 61/4% Twenty-Five Year Bonds of 1967, due 1992 (Can$20,000,000)(2) .................... 18,500,018 None 7% Twenty-Five Year Bonds of 1968, due 1993 (Can$15,000,000)(2) ..................... ...... 13,875,014 None SUB-TOTAL .......... .............................................. $ 89,354,626 (continued) Funded Debt of the Bank (continued) June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F PAYABLE IN Principal Annual sinking Issue and maturity outstanding fund requirementtl) Deutsche Mark 5y%% Notes of 1966, due 1968 (DM64,000,000) . ........................................... $ 16,000,000 None* 4%% Bonds of 1960, due 1968-72 (DM450,000,000) ......... .................................. 112,500,000 None* 43%% Notes of 1964, due 1968-69 (DM160,000,000) ... ........................................ 40,000,000 None* 45/4% Notes of 1965, due 1969-70 (DM240,000,000) ............................................ 60,000,000 None* 55/,% Notes of 1967, due 1969-70 (DM64,000,000) ................................1............ 16,000,000 None* 4X4% Notes of 1965, due 1971 (DM37,500,000) ................................. I .............. 9,375,000 None* 4Y% Notes of 1966, due 1971 (DM32,000,000).8,000,000 ..........NI............................ 8,000,000 None* 55/% Notes of 1967, due 1971 (DM64,000,000) ............................ I .............. 16,000,000 None* 6y8% Notes of 1968, due 1972 (DM69,500,000) ................................................ 17,375,000 None* 6 4% Notes of 1968, due 1973 (DM50,000,000) .............................. ................. 12,500,000 None* 5% Bonds of 1959, due 1974 (DM120,000,000) ................................. .............. 30,000,000 1969-74 DM20,000,000 6y4y% Bonds of 1968, due 1978 (DM120,000,000) .............................................. 30,000,000 None* 552% Bonds of 1965, due 1985 (DM250,000,000)(2) ... ......... 62,500,000 1971-84 DM17,000,000 1985 DM12,000,000 $ 430,250,000 Less: bonds purchased(2) .................................................................. 7,541,750 SUB-TOTAL ............................. ................. ........................ $ 422,708,250(4)15) Italian Lire 5% Bonds of 1961, due 1976 (Litl5,000,000,000) .... .................... .............. $ 24,000,000 None SUB-TOTAL .................................................... I .................. $ 24,000,000 Netherlands Guilders 354% Fifteen Year Bonds of 1954, due 1969 (f.7,297,000) ....................... .............. $ 2,015,746 1968 f.3,318,000 1969 f.3,979,000 3y2% Twenty Year Bonds of 1955, due 1975 (f.18,691,000) ....... .......... 5,163,260 1969 f.2,451,000 1970-74 f.2,640,000 1975 f.3,040,000 4Y2y% Twenty Year Bonds of 1961, due 1981 (f.50,000,000) ................... 13,812,155 1972-81 f.5,000,000 45/2% Twenty Year Bonds of 1962, due 1982 (f.40,000,000) ................... 11,049,724 1973-82 i.4,000,000 654% Twenty Year Bonds of 1968, due 1988 (f.40,000,000) ................... 11,049,724 1979-88 f.4,000,000 .SUB-TOTAL ........ h : ................... $ 43,090,609 Pounds Sterling 35/2% Twenty Year Stock of 1951, due 1971 (2,656,742) ....... ..-.-.-.- ..-.-.. - .-.- . $ 6,376,181 1969 144,766 1970-71 166,700 354% Twenty Year Stock of 1954, due 1974 (3,208,571) ..7,700,570 1968 10,328 1969-74 166,700 5% Twenty-Three Year Stock of 1959, due 1982 (8,631,457) ..20,715,497 1969 239,472 1970-82 278,000 SUB-TOTAL ............................................................................. $ 34,792,248~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~17-8 ...................................................28,0 SUB-TOTAL.$ 34,792,248 Swedish Kronor 6% Twenty-Five Year Bonds of 1967, due 1992 (SKr75,000,000) .$ 14,497,768 1977-91 SKr2,500,000 SUB-TOTAL .$ 14,497,768 Appendix E International Bank for Reconstruction & Development PAYABLE IN Principal Annual sinking IssuLe and maturity outstanding fund requirement(1) Swiss Francs 3A/% Fifteen Year Bonds of 1953, due 1968 (SwF50,000,000) ..... .................... $ 11,634,671 None 3y2% Fifteen Year Bonds of 1953 (Nov. Issue), due 1968 (SwF50,000,000) ...................... 11,634,671 None 54% Notes of 1967, due 1969 (SwF33,300,000) .............................................. 7,748,691 None* 5% Loan of 1968, due 1968-70 (SwF50,000,000) ............... ... I .......................... 11,634,671 None* 31/2% Eighteen Year Bonds of 1954, due 1972 (SwF50,000,000) . ............................... 11,634,671 None 4Y2% Twelve Year Bonds of 1960, due 1972 (SwF60,000,000) ............ ................. 13,961,606 None 4% Eleven Year Bonds of 1962, due 1973 (SwF100,000,000) .................................. 23,269,342 None 4% Fifteen Year Bonds of 1959, due 1974 (SwF100,000,000) ................ .................. 23,269,343 None 4% Fifteen Year Bonds of 1960, due 1975 (SwF60,000,000) ................................... 13,961,606 None 3y2% Twenty Year Bonds of 1955, due 1976 (SwF30,000,000) .................................. 6,980,803 1970-74 SwF 4,000,000 1975-76 SwF 5,000,000 4% Eighteen Year Bonds of 1961, due 1979 (SwF100,000,000) ..... ............................ 23,269,343 1971-78 SwF11,000,000 1979 SwF12,000,000 4/4% Eighteen Year Bonds of 1965, due 1983 (SwF60,000,000) . ....... ............ ...... 13,961,605 None 5yX% Fifteen Year Bonds of 1968, due 1983 (SwF75,000,000) ................................ 17,452,007 1979-83 SwF15,000,000 5% Eighteen Year Bonds of 1967, due 1985 (SwF60,000,000) ................................. 13,961,606 1980-85 SwF10,000,000 SU B-TO TA L .... ...... .......................... .............................. .... $ 204,374,636 G ROSS TOTA L ............................................8.................. ..... $3 ,289,568,137 (4)(5) (l) Each issue, except those indicated with an asterisk, is subject to redemption Annual Price not prior to maturity at the option of the Bank at the prices and upon the conditions Calendar principal exceeding stated in the respective bonds. The amounts shown as annual sinking fund Issue years amount (incl. costs) requirements are the principal amounts of bonds to be purchased or redeemed Sy,% due 1991.1968-1986 Can$300,000 97.00% to meet each year's requirement, except that in the cases of the 3%% Twenty 6%% due 1992 - . 1969-1987 Can$300,000 98 00% Year Stock of 1951 and of 1954 and the 5% Twenty-Three Year Stock of 1959 the 67% due 1992 . - . 1969-1987 Can$300,000 97.500% amount shown is the amount of funds to be provided annually for purchase or 7% ue - , .50 redemption. The amounts are shown after deduction of sinking fund require- The purchase funds obligations are non-cumulative from year to year. ments met as of the date of this statement. In the case of the 5%% Deutsche Mark Bonds of 1965 the Bank intends to support The following table shows the aggregate principal amount of the maturities and the market for these bonds whenever it may appear appropriate from time to time. sinking fund requirements each year for the five years following the date of this statement: (3J The Bank has entered into agreements to sell additional bonds of the follow- ing issues. These agreements provide for the delivery of such bonds to'be made Period Amount against payment therefor in the aggregate amounts and at various dates to and including the dates shown hereafter: July 1, 1968 to June 30, 1969 ............................... $ 486,275,239 July 1, 1969 to June 30, 1970 ................ ............. 419,300,166 Date of July 1, 1970 to June 30, 1971 ............................... 205,733,592 Issue Amount final dehvery July 1, 1971 to June 30, 1972 ........................... 236,514,455 5%% of 1967 due 1992 $89,050,000 January 15, 1969 July 1, 1972 to June 30, 1973 ............................ 208,437,522 5s%% of 1967 due 1993. $59,350,000 September 3, 1969 TOTAL . $1,556,260,974 6% of 1968 due 1994 . ...............$86,300,000 February 4,1970 (41 The Bank signed an agreement on June 28, 1968 to borrow DM400 million at m2) In the cases of the following Canadian issues, the Bank will, as purchase 6,%, per annum from a private institution in Germany for settlement on July 1, funds, use its best efforts to purchase bonds of these issues in the open market 1968. This loan is repayable over the period 1977-1982. or otherwise at annual principal amounts and prices shown hereunder: 15) The Bank has arranged to refinance at maturity, August 1,1968, bonds and notes totaling $32 million and DM130 million (US equivalent $32.5 million) by issuing new notes totaling DM258 million (US equivalent $64.5 million) maturing 1972-1973. Notes to Financial Statements Appendix F International Bank for Reconstruction and Development June 30, 1968 Note A liabilities with respecttocontractual payments Note E Amounts in currencies other than United on loans guaranteed by it. Ot the $169,123,501 net income earned in the States dollars have been translated into United Under Article II, Section 9, each member is fiscal year ended June 30, 1968, the Executive States dollars: required, if the par value of its currency is Directors in Augustl968,allocated$94,123,501 (i) In the cases of 77 members, at the par reduced or if the foreign exchange value of to the Supplemental Reserve Against Losses values as specified in the "Schedule of Par its currency depreciates to a significant extent on Loans and Guarantees and From Currency Values", published bythe International Mon- in its territories, to maintain the value of the Devaluations and have recommended to the etary Fund; Bank's holdings of its restricted currency, Board of Governors that an additional amount (ii) In the cases of the remaining 30 members including the principal amount of any notes equal to the balance of $75,000,000 be trans- [Algeria, Argentina, Bolivia, Brazil, Cam- substituted thereior, and the Bank is required, ferred by way of grant to the International eroon, Central African Republic, Chad, if the par value of a member's currency is Development Association. Chile, China, Colombia, Congo (Brazzaville), increased,toreturntothemembertheincrease Consistent with past practice, the Supple- Democratic Republic of Congo, Dahomey, in the value of such restricted currency held mental Reserve Against Losses on Loans and Gabon, The Gambia, Guinea, Indonesia, by the Bank. To the extent such restricted Guarantees and From Currency Devaluations Ivory Coast, Korea, Laos, Malagasy Republic, currencies are out on loan, the Bank and the has been charged during the current fiscal Mali, Mauritania, Niger, Paraguay, Peru, Sen- members are obligated to make such pay- year with the undermentioned amounts repre- egal, Togo, Upper Volta and Viet-Nam], at ments only when such restricted currencies senting a net loss to the Bank as a result of the rates used by such members inr making are recovered by the Bank. the revaluation on the books of the Bank of payments of capital subscriptions to the The equivalent of $18,868,220 is receivable the balances of amounts in those currencies Bank; and from 6 members and the equivalent of $387 261 held at the dates of devaluation and acquired (iii) In the case of Swiss francs, non-member is payable to 1 member in order to maintain from net earnings In the currencies indicated: currency, at the rate of 4.2975 Swiss francs to the value of their restricted currencies as Net loss on 1 United States dollar. required under Article II, Section 9. Currency devaluation See also Note B. Some members have converted part or all of Ceylon rupees . . $ 31,810 No representation is made that any currency the Bank's holdings of their restricted cur- Danish kroner 571,030 held by the Bank is convertible into any other rency into United States dollars to be used Finnish markkas 618,029 currency at any rate or rates. and reused as United States dollars in the New Ghana cedis . 273,363 Bank's operations, subject to the right of the Irish pounds 293,786 Note B Bank or the member to reverse the transac- Israel pounds 101,955 These currencies ofthe several members, and tions at any time, with immediate affect as to Pounds sterling ... . 20,828,449 the notes issued by them in substitution for dollars then held by the Bank, and, as to Spanish pesetas 466,824 any part of such currencies as permitted under dollars loaned, upon repayment of the loans. Others 1,452 the provisions of Article V, Section 12, are Such dollars while held by the Bank or on TOTAL . .$23,186,698 derived from the portion of the subscriptions loan are not subject to the provisions of to the capital stock of the Bank which is Article II, Section 9. Such dollars held by the Note F payable in the currencies of the respective Bank or repayable on loans are shown in these In terms of United States dollars of the weight members (such portion being hereinafter financial statements under "United States dol- and fineness in effect on July 1, 1944. called restricted currency). Such restricted lars" and, where relevant, as "unrestricted". currencies may be loaned by the Bank, and Note G funds received by the Bank on account of Note C Subjectto call bythe Bank only when required principal of loans made by the Bank out of The Bank opened four interest-bearing de- to meet the obligations of the Bank created such restricted currencies may be exchanged mand deposit accounts with the Reserve Bank by borrowing or by guaranteeing loans. As to for other currencies or reloaned, only with the of India denominated in US dollars, pounds $18,353,520,000 the restriction on calls is im- approval in each case of the member whose sterling, Deutsche mark and yen. The Bank posed by the Articles of Agreement; as to restricted currency is involved; provided, how- intends to withdraw these funds from time to $2,294,190,000 by resolutions of the Board of ever, that, if necessary, after the Bank's time but not later than March 31, 1971. Governors. subscribed capital is entirely called, such restricted currencies may, without restriction Note 0 by the members whose currencies are offered, Amounts of commissions set aside pursuant be used or exchanged for the currencies to Article IV, Section 6, as a Special Reserve required to meet contractual payments of to be held in liquid form and to be used only interest, other charges or amortization on the for the purpose of meeting liabilities of the Bank's own borrowings or to meet the Bank's Bank on its borrowings and guarantees. Opiniion of Iiidepencden-t Auditor Financial Statements Covered by the Foregoing Opinion 1707 L STREET, N.W. WASHINGTON, D.C. 20036 AUGUST 1, 1968 To INTERNATIONAL BANK FOR REJCONSTRUCTION AND DEVELOPMENT WASHINGTON, D.C. In'our opinion, the accompanying financial statements presentfairly, Balance Sheet .......... . Appendix A (page 68) in terms of United States currency, the financial position of Interna- tional Bank for Reconstruction and Development at June 30, 1968, Comparative Statement of Income and and the results of its operations for the year then ended, in conform- Expenses ... .. ......... ............ Appendix B (page 70) ity with generally accepted accounting principles applied on a basis Statement of Subscriptions to Capital consistent with that of the preceding year. Our examination of these Stock and Voting Power ......... ......... Appendix C (page 71) statements was made in accordance with generally accepted audit- ing standards, and accordingly included such tests of the accounting Summary Statement of Loans. . ........ Appendix D (page 73) records and such other auditing procedures as we considered Funded Debt of the Bank .... .............. Appendix E (page 75) necessary in the circumstances. Notes to Financial Statements .. Appendix F (page 78) PRICE WATERHOUSE & CO. Statement of Loans Signed During the Fiscal Year 1967/68 Expressed in United States Currency GUARANTOR Date of Loan Interest Principal Purpose and Borrower Agreement Maturities rate amount Argentina Agriculture ........................................................... July 31, 1967 1972-87 6% $ 15,300,000 Argentina (Guarantor) Power-Servicios Electricos del Gran Buenos Aires, S.A ....... . ........ January 25, 1968 1971-88 6X4% 55,000,000 Australia (Guarantor) Communications-Papua and New Guinea ..................... ......... June 28, 1968 1973-88 6X4% 7,000,000 Brazil Agriculture ............................. ........................ September23, 1967 1974-87 6% 40,000,000 Brazil (Guarantor) Industry-Aluminum-Cia. Mineira de Aluminio-Alcominas ................ January 26,1968 1971-83 6/4% 22,000,000 Ceylon (Guarantor) Industry-Development Finance Corporation of Ceylon .November 22, 1967 1970-85 Various 4,000,000 China Railways .............................................................. January 18, 1968 1971-83 6Y'% 17,500,000 China (Guarantor) Industry-China Development Corporation ......................... August 7, 1967 1970-79 Various 15,000,000 Communications-Directorate General of Telecommunications ............ August 2, 1967 1971-87 6% 17,000,000 Colombia (Guarantor) Power-Empresa de Energia El6ctrica de Bogota ...... .................... June 3,1968 1972-88 6X4% 18,000,000 Industry-Banco de la Republica .... ................. ......... ..... May 22, 1968 1969-85 Various 12,500,000 Water Supply-Empresa de Acueducto y Alcantarillado de Bogota ...... June 3, 1968 1972-88 6X'% 14,000,000 Costa Rica (Guarantor) Agriculture-Banco Central de Costa Rica ................................ June 5,1968 1973-88 6%% 3,000,000 El Salvador Roads .............................................................. December 7, 1967 1971-90 6% 2,800,000 Ethiopia Roads .................................................... .......... January 15, 1968 1972-92 6Y4% 13,500,000 Gabon Education .............................................................. June 7, 1968 1978-93 6/4% 1,800,000 Greece (Guarantor) Industry-National Investment Bank for Industrial Development, S.A ....... March 18, 1968 1969-79 Various 12,500,000 Guatemala (Guarantor) Power-Instituto Nacional de Electrificaci6n . ................ ............ June 28, 1968 1972-91 6Y4% 7,000,000 Honduras Power ............................................................ .. June 12, 1968 1972-93 6 X % 7,500,000 India (Guarantor) Industry-The Industrial Credit and Investment Corporation of India Limited ................................... ......... ........ September 19,1967 1970-83 Various 25,000,00 Iran Agriculture .............................. .............................. October 17, 1967 1974-93 6% 22,000,000 Iran (Guarantor) Industry-Industrial and Mining Development Bank of Iran ................ June 5,1968 1970-81 Various 25,000,000 (continued) Appeiidix G International Bank for Reconstruction and Development Expressed in United States Currency GUARANTOR Date of Loan Interest Principal Purpose and Borrower Agreement Maturities rate amount Israel (Guarantor) Industry-Industrial Development Bank of Israel Limited ...... ........... November 15, 1967 1970-82 Various $ 15,000,000 Ivory Coast Roads ........................................................ .... June 21, 1968 1972-87 6y4% 5,800,000 Korea (Guarantor) Industry-Korea Development Finance Corporation ........... ........... January31, 1968 1970-85 Various 5,000,000 Malagasy Republic Education ............................ ................................ August 23, 1967 1977-97 6% 4,800,000 Malaysia Land Settlement ...................... ................................. April 17, 1968 1976-88 6X% 14,000,000 Mexico (Guarantor) Roads-Nacional Financiera, S.A ........................................ January 26, 1968 1972-88 6Y%% 27,500,000 Irrigation-Nacional Financiera, S.A ............................ ......... January 26, 1968 1975-88 6%4 25,000,000 Power-Nacional Financiera, S.A. and Comisi6n Federal de Electricidad. . June 28, 1968 1972-88 6%4% 90,000,000 Nicaragua Education .............................................................. April 10, 1968 1978-93 6X4% 4,000,000 Nicaragua (Guarantor) Power-Empresa Nacional de Luz y Fuerza ................. ............. June21, 1968 1973-88 6y4% 15,250,000 Pakistan (Guarantor) Industry-The Pakistan Industrial Credit and Investment Corporation Limited ............... ................................... August 10, 1967 1970-84 Various 35,000,000 Peru (Guarantor) Power-Empresas Electricas Asociadas ............. .................... September 11, 1967 1972-92 6% 17,500,000 Singapore (Guarantor) Power and Water Supply-Public Utilities Board of Singapore ..... ...... July 5,1967 1970-87 6% 23,000,000 Communications-Singapore Telephone Board ........................... September 15, 1967 1970-87 6% 3,000,000 Spain (Guarantor) Railways-Red Nacional de los Ferrocarriles Espanioles ........ . ......... August 4, 1967 1971-82 6% 50,000,000 Sudan (Guarantor) Power-Central Electricity and Water Corporation ...... . ........... ... January 15, 1968 1973-93 64% 24,000,000 Tanzania (Guarantor) Power-Tanganyika Electric Supply Company, Limited .................... November 13, 1967 1971-88 6% 5,200,000 Thailand Irrigation .......................................................... September 19, 1967 1973-87 6% 26,000,000 Roads ......... ..................................................... May 23, 1968 1972-88 6X% 29,000,000 Tunisia (Guarantor) Iridustry-Societe Nationale d'Investissement ............................. September 14, 1967 1969-85 Various 10,000,000 Yugoslavia (Guarantor) Industry-Yugoslav Investment Bank ..................................... July 18, 196r 1970-81 6% 10,500,000 Railways-Yugoslav Investment Bank ................... ............ .... March 22, 1968 1974-93 6X% 50,000,000 TOTAL .................... ........................... ....................................................... $846,950,000 I I IDA Appeindices Page A Statement of Condition ........................................ 84 B Comparative Statement of Income and Expenses .... ............. 85 C Statement of Holdings of Currencies and Obligations ............. 86 D Summary Statement of Development Credits ... . ............... 88 E Statement of Subscriptions, Voting Power and Supplementary Resources .. ...................... ...... 89 F Notes to Financial Statements .. . . ......................... 91 OPINION OF INDEPENDENT AUDITOR .............................. 92 Statement of Coondition Appendix A International Developmenl Association June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Assets DUE FROM BANKS AND OTHER DEPOSITORIES (See Appendix C) Member currencies Unrestricted ..................................................... ......... $ 53,858,684 Subject to restrictions-Note B ......... .................................... 52,401,351 $ 106,260,035 INVESTMENTS Government Obligations (At cost or amortized cost) Face amount $52,912,000 ....... ........... : $ 51,729,558 Accrued interest .......................................................... 331,367 52,060,925 RECEIVABLE ON ACCOUNT OF SUBSCRIPTIONS AND SUPPLEMENTARY RESOURCES (See Appendix C) Non-negotiable, non-interest-bearing, demand obligations Unrestricted .... . ......................................... ............ $292,150,062 Subject to restriction s-Note B ............... ............................ 162,296,761 Amounts required to maintain value of currency holdings-Note C ............ 3,464,982 457,911,805 RECEIVABLE FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT-Note D ...................................... ............... 42,700,000 RECEIVABLE FROM SWISS CONFEDERATION-Note E ............ ............... 12,100,058 EFFECTIVE DEVELOPMENT CREDITS HELD BY ASSOCIATION (Including undisbursed balance of $383,479,448) (See Appendix D)-Note F ........ ............. ...................... 1,725,978,440 ACCRUED SERVICE CHARGE ON DEVELOPMENT CREDITS-Note F ............... 3,049,230 OTHER ASSETS .............................................................. 32,000 TOTAL ..............................$............................ ......... $2,400,092,493 Liabilities, Subscriptions, Supplementary Resources, Transfers and Accumulated Net Income LIABILITIES Undisbursed balance of effective development credits (See Appendix D) ...... $ 383,479,448 LOAN FROM SWISS CONFEDERATION-(Not yet due) .................. ...... 12,100,058 SUBSCRIPTIONS (See Appendix E)-Note G ........... . ...................... 1,000,222,000 Payments on account of pending subscriptions ............................... 32,000 SUPPLEMENTARY RESOURCES (See Appendix E)-Note G ............ ......... 772,870,000 TRANSFERS FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT-Note D ............................................... ....... 210,000,000 ACCUMULATED NET INCOME At June 30, 1967 ........................$.................................. $ 14,424,396 Less-Loss on currency devaluation-Note H ................................ 1,061,006 $ 13,363,390 The period from July 1, 1967 to June 30, 1968 ...................... ......... 8,025,597 21,388,987 TOTAL .........,.........,.,,.$2,400,092,493 Comparative Statement of Income and Expenses Appendix B International Development Association For the Fiscal Years Ended June 30, 1967 and June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F July 1-June 30 1966/67 1967f68 Income Income from investments ................................... $2,557,348 $ 3,232,230 Income from development credits ........................... 6,268,489 9,006,488 GROSS INCOME ........................................ $8,825,837 $12,238,718 Expenses Administrative expenses .................................... $4,216,061 $ - Management Fee paid to International Bank for Reconstruction and Development-Note I ................... - 4,216,061 Exchange adjustments ...................................... (8) (2,940) GROSS EXPENSES ...................................... $4,216,053 $ 4,213,121 Net Income ........................................... $4,609,784 $ 8,025,597 Statement of Holdings of Currencies and Obligations June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Non-negotiable, non intcrest- bearing, demand obligations on account of Unit of Initial Supplementary Member currency Currency subscriptions resources Total Afghanistan ........ Afghani ... ........................ 606,000 $ 303,000 $ - $ 909,000 Algeria ...... Dinar - 3,627,000 - 3,627,000 Argentina ...... Peso . - 16,947,000 - 16,947,000 Australia ...... ................. Dollar 1,314,218 8,716,720 10,030,938 Austria ..... Schilling 357,147 - 2,219,615 2,576,762 Belgium ..... Franc ................ 719,630 180,000 5,830,000 6,729,630 Bolivia ...... Peso Boliviano - 954,000 - 954,000 Brazil ...... New Cruzeiro 16,947,000 - - 16,947,000 Burma ...... Kyat - 1,818,000 - 1,818,000 Burundi ...... Franc - 684,000 - 684,400 Cameroon ...... Franc - 909,000 - 909,000 Canada ..................... ...... Dollar 2,872,439 - 18,155,004 21,027,443 Central African Republic ........ . Franc - 450,000 - 450,000 Ceylon ............ ............. Rupee - 2,727,000 - 2,727,000 Chad . Franc ... ......................... - 450,000 - 450,000 Chile .......................... Escudo 3,177,000 - - 3,177,000 China ......................... New Taiwan Dollar - 27,234,000 - 27,234,000 Colombia .......................... Peso 3,177,000 - - 3,177,000 Congo (Brazzaville) ............. ... Franc - 450,000 - 450,000 Congo, Democratic Republic of ..... Zaire 347,904 - - 347,904 Costa Rica ............... ....... Colon 180,000 - - 180,000 Cyprus .. . Pound ............................. - 684,000 - 684,000 Dahomey .... . Franc . - 450,000 - 450,000 Denmark . ...... .................... Krone .. ... K r o n e 592,187 - 3,384,333 3,976,520 Dominican Republic .... . .......... Peso 360,000 - - 360,000 Ecuador .. . . Sucre ....... ........... 585,000 - - 585,000 El Salvador ......................... Colon 270,000 - - 270,000 Ethiopia ............................ Dollar - 450,000 - 450,000 Finland .......................... ... Markka 1,092,195 - - 1,092,195 France ............................. Franc 3,855,436 - 27,344,209 31,199,645 Gabon.. ........................... Franc - 450,000 - 450,000 Gambia, The ....................... Pound - 240,300 - 240,300 Germany ........................... Deutsche Mark 4,408,449 - - 4,408,449 Ghana ... New Cedi ........ - 1,486,798 - 1,486,798 Greece ............................ Drachma 2,268,000 - - 2,268,000 Guatemala -utz.a.....l......... ..... Qu etz al 360,000 - - 360,000 Guyana ............................ Dollar ...... - 729,000 - 729,000 Haiti ............................... Gourde .- 684,000 - 684,000 Honduras .......................... Lempira .270,000 - - 270,000 India ............................... Rupee .1,037,073 35,257,333 - 36,294,406 Iran ............................... Rial .- 4,086,000 - 4,086,000 Iraq ............................... Dinar .- 684,000 - 684,000 Israel .............................. Pound .- 302,400 - 302,400 Ivory Coast ........................ Franc .- 909,000 - 909,000 Japan .............................. Yen .3,088,534 - 17,916,667 21,005,201 Jordan ............................. Dinar .- 108,000 - 108,000 Kenya .............................. Shilling .- 1,512,000 - 1,512,000 Korea .. Won .. 1,133,960 - - 1,133,960 Kuwait ......................... ... Dinar .257,600 - 1,488,200 1,745,800 Laos .............................. Kip .210,000 240,000 - 450,000 Appeiidlix C International Development As soc iati on Non-negotiable, non-interest- bearing, demand obligations on account of Unit of Initial Supplemieatary Member currency Currency subscriptions resources Total Lebanon .. .... Pound ...........405,000 $ - $ - $ 405,000 Liberia . .... . ........Dollar . .... .........- 884,000 - 684,000 Libya.... ... .. ........Pound . ... .... ..- 909,000 - 909,000 Malagasy Republic. .........Franc . ..... .. ....181,800 727,200 - 909,000 Malawi ...... . .... .. Pound ............ - 684,000 - 684,000 Mal'aysia ... .. .... .. ...Dollar, ... .. ... - 2,268,000 - 2,268,000 Mali . ..... ...... .... Franc . ... ...........783,000 - - 783,000 Mauritania ...... ..... Franc. ......... ... - 450,000 - 450,000 Mexico . ..... ..... ..... Peso .5...... ..... . ,854,737 - - 6,854,737 Morocco . ... . ........ Dirham .............. - 3,177,000 - 3,177,000 Nepal ................. .Rupee ........ ...... - 339,708 - 339,708 Netherlands - ..... . .. Guilder . ............ . 989,297 - 7,986,188 8,975,485 Nicaragua ........... ... Cordoba. ... . 270,000 - - 270,000 Niger . .... . ....... Franc ... .-...... 450,000- 450,000 Nigeria ....... ......... Pound..... .......... - 3,024,000 - 3,024,000 Norway ... ... ... .. .Krone ... ... ..460,316 - 2,920,019 3,380,335 Pakistan .. .... . ... Rupee......... .. - 9,081,000 - 9,081,000 Pananma . ........ . .. Balboa . .......... ..3,598 - - 3,598 Paraguay ... ..... . ... Guarani ...............270,000 - - 270,000 Peru ..... .. . . . . . . ~Sol .... ........ . - 1,593,000 - 1,593,000 Philippines. .... .... Peso . .......- 4,536,000 - 4,536,000 Rwanda ... .. ... .. .. ... .Franc . ...... . ......684,000 -. - 684,000 Saudi Arabia.-- ..... .... Riyal . .... ......- 3,330,000 - 3,330,000 Senegal ...... . . .. . . Franc. . .. . . ...- 1,512,000 - 1,512,000 Sierra Leone .. ..... . ... Leone . .......... ...- 586,286 - 586,286 Somalia. . ... ...... ....Shilling . ............. - 684,000 - 684,000 South Africa . . .......... Rand .. ... .. ..... ... 2,500,525 - - 2,500,525 Spain ...... . . .. ... Peseta . ....... ......6,683,272 1,556,743 - 8,240,015 Sudan. . . . ..... ...... .Pound ... ...... - 909,000 - 909,000 Sweden . . ... . ....... . . . Krona. ... ... ... 1,927,200 - 11,469,107 13,396,307 Syrian Arab Republic .. .. .. ..Pound .. .. ..... ... 342,000 513,000 - 855,000 Tanzania. . . ....... ..Shilling . ..........- 1,512,000 - 1,512,000 Thailand .. .. . ........Baht . ............- 2,727,000 - 2,727,000 Togo...... . . ..... . .. Franc. . ... ......... 7 683,993 - 684,000 Tunisia... . .......... . Dinar. ...... ...... - 1,359,000 - 1,359,000 Turkey ........ ..... . Lira . .............. - 5,220,000 - 5,220,000 Uganda . ............... Shilling . ... ....... - 1,512,000 - 1,512,000 Uni.ed Arab Republic. . ........ Pound . .......... - 4,572,000 - 4,572,000 United Kingdor'. .. .... ...Pound, . ......I.... 8,179,957 - 44,640,000 52,819,957 United States. .........Dollar ................ 21,243,554 - 139,900,000 161,143,554 Upper Volta. .. ............ Franc ... ............- 450,000 - 450,000 Vie't-Nam ................ Piastre....... ...... .. 1,359,000 - - 1,359,000 Yugoslavia .......... ...... Dinar ............... 3,636,000 - - 3,636,000 Zambia ................. Kwacha............ - 2,421,000 - 2,421 000 TOTALS.. ................. ......... .. .. $106,260,035 $162,476,761 $291,970,062 $560,706,8581') ti)Of this amount the equivalent of $346,008,746 is unrestricted and the equivalent of $560,227,457 is subject to maintenance of value-Note C. Summary Statement of Development Credits Appeiidix E International Developmen Associatior June30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Effective development credits held by Association Member in whose - - Developmen territories development Disbursed Undisbursed credits not ye credits have been made Il) portion portion (2) Total effective (3 Afghanistan ...................................$ 247,000 $ 3,253,000 $ 3,500,000 $ - Bolivia ............................................................. 13,831,517 3,168,483 17,000,000 Burundi ............................................................ 190,591 909,409 1,100,000 Cameroon ............................................................ 851,813 10,698,187 11,550,000 Ceylon ................................ ............................. - - - 2,000,00( Chile .... ......................................................... 18,899,759 100,241 19,000,000 China ................ ..................... .................. 13,083,716 - 13,083,716 Colombia .....1 ............................ ................... 18,872,911 627,089 19,500,000 Costa Rica ..................................... ................... 4,550,242 - 4,550,242 Ecuador ....................................................... ... 990,871 7,009,129 8,000,000 5,100,00( El Salvador ..... .............................. ................. 7,061,572 938,428 8,000,000 Ethiopia ............................. ............................. 13,661,323 7,038,677 20,700,000 7,700,00( Ghana ........................................................ - - - 10,000,00( H aiti ................................................................. 349,855 - 349,855 Honduras . ......................... ............................. 10,479,670 1,448,304 11 ,92 7 ,974 4 ,000,00( India ............................................................. 849,275,092 38,168,988 887,444,080 Jordan ................... ......................................... 7,772,447 2,243,056 10,015,503 Kenya ............................................................. 9,635,727 16,564,273 26,200,000 12,800,00( Korea ............................................................. 14,034,013 10,958,911 24,992,924 Malagasy Republic .... ............................ ............. 844,593 9,155,407 10,000,000 Malawi ... .............. .............. __ ....... .- 322,328 27,177,672 27,500,000 Mali ............................................................. 1,491,643 7,608,357 9,100,000 Mauritania ........................................................... 1,377,951 5,322,049 6,700,000 Morocco 4 4 1................................... ........................ 463,043 10,536,957 11,000,000 Nicaragua .......................... ................................. 2,994,834 - 2,994,834 Niger ............................. ................................ 800,726 699,274 1,500,000 Nigeria ......... .................................................... 10,280,163 25,219,837 35,500,000 Pakistan ............................................................. 215,831,525 105,275,725 321,107,250 10,000,00( Paraguay ............................. ............................... 14,226,943 2,873,057 17,100,000 Senegal ......... ................................................... 1,235,303 7,764,697 9,000,000 Somalia ............................................................. 1,127,694 5,072,306 6,200,000 2,300,00( Sudan ..... ........................................................ 11,977,409 1,022,591 13,000,000 8,500,00( Syrian Arab Republic .................... ............................ 621,274 7,878,726 8,500,000 Tanzania ..................................- ....................... 15,860,665 10,739,335 26,600,000 Tunisia ............................................................. 8,464,629 15,397,969 23,862,598 Turkey ............................. ............................... 60,645,412 19,854,052 80,499,464 Uganda ................................................ .......... 780,830 17,619,170 18,400,000 United Kingdom: Botswana .......... ............................................... 3,549,981 50,019 3,600,000 Lesotho ....................... ..................................... 3,013,927 1,086,073 4,100,000 Swaziland .......... ................................................ 2,800,000 - 2,800,000 TOTALS .......... - .............................................. $1,342,498,992 $383,479,448 $1,725,978,440 $62,400,00( (1) All development credits have been made to member governments or to the government of a territory of a member. (2) Of the undisbursed balance the Association has entered into irrevocable commitments to disburse $14,092,503. (3) Agreements in the amount of $62,400,000 providing for these development credits have been signed, but the development credits do not become effective anc disbursements thereunder do not start until the borrower takes certain action and furnishes certain documents to the Association. Statement of Subscriptionis, Votinig Power Appenidix E International Development aiid Supplei-enitary ResouLrcesAsoitn June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Supplementary Subscriptions Voting Power Resources Total Subscriptions Total Total and (No tes C Percent Number Percent (Notes C Supplemnentary Member 11) and G) ot total of votes of total and G) Resources Australia.. ......... $ 20,180,000 2.02 4,536 1.82 $ 19,800,000 $ 39,980,000 Austria ................ 5,040,000 .50 1,508 .61 5,040,000 10,080,000 Belgium. . . .8,250,000 .82 2,150 .86 8,250,000 16,500,000 Canada. . 37,830,000 3.78 8,066 3.24 41,700,000 79,530,000 Denmark. ..... . ... .. 8,740,000 .87 2,248 .90 7,500,000 16,240,000 Fin4and ..... ... ..3,830,000(21 .38 1,266 .51 2,298,000 6,128,000 France.. ... .... 52,960,000 5.29 11,092 4.45 61,872,000 114,832,000 Germany. .... . 52,960,000 5.29 11,092 4.45 72,600,000 125,560,000 Italy. ......18,160,000 1.82 4,132 1.66 30,000,000 48,160,000 Japan. ... 33,590,000 3.36 7,218 2.90 41,250,000 74,840,000 Kuwait .... 3,360,000 .34 1,172 .47 3,360,000 6,720,000 Luxembourg ............. . 375,000 .04 575 .23 375,000 750,000 Netherlands. ... 27,740,000 2.77 6,048 2.43 16,500,000 44,240,000 Norway. . 6,720,000 .67 1,844 .74 6,600,000 13,320,000 South Africa ... ...10,090,000 1.01 2,518 1.01 3,990,000 14,080,000 Sweden.. . .....10,090,000 1.01 2,518 1.01 43,135,000 53,225,000 United Kingdom. . 131,140,000 13.11 26,728 10.73 96,600,000 227,740,000 United States........... . . 320,290,000 32.02 64,558 25.92 312,000,000 632,290,000 TOTAL PART I MEMBERS. .... . $751,345,000 75.10 159,269 63.94 $772,870,000 $1,524,215,000 Atghanistan .......$.. 1,010,000 .10 702 .28 $ - $ 1,010,000 Algeria .4,030,000 .40 1,306 .53 - 4,030,000 Argentina 18,830,000 1.88 4,266 1.~71 - 18,830,000 Bolivia ..... .1,060,000 .11 712 .29 - 1,060,000 Brazil . .... . . .. 18,830,000 1.88 4,266 1.71 - 18,830,000 Burma., ........ 2,020,000 .20 904 .36 - 2,020.000 Burundi .............760,000 .08 652 .26 - 760,000 Cameroon. 1,010,000 .10 702 .28 - 1,010,000 Central African Republic .......500,000 .05 600 .24 - 500,000 Ceylon ......... .............3,030,000 .30 1,106 .44 - 3,030,000 Chad. ... ......500,000 .05 600 .24 - 500,000 Chile ....... .. ....3,530,000 .35 1,206 .49 - 3,530.000 China. ...... 30,260,000 3.03 6,552 2.63 - 30,260,000 Colombia .....................3,530,000 .35 1,206 .49 - 3,530,000 Congo (Brazzaville) ........500,000 .05 600 .24 - 500,000 Congo, Democratic Republic o............. 3,020,000121 .30 1,104 .44 - 3,020,000 Costa Rica. . ... . .....200,000 .02 540 .22 - 200,000 Cyprus. . ....... .760,000 .08 652 .26 - 760,000 Dahomey ....... ...........500,000 .05 600 .24 - 500,000 Dominican Republic. .. . ....... 400,000 .04 580 .23 - 400,000 Ecuador ..... . .... .... .650,000 .06 630 .25 - 650,000 El Salvador .....................300,000 .03 560 .23 - 300,000 Ethiopia ........ .... .... ,500,000 .05 600 .24 - 500,000 Gabon .... ................500,000 .05 600 .24 - 500,000 Gambia, The ........ ......267,000 .03 553 .22 - 267,000 Ghana. .. 2,360,000121 .24 972 .39 - 2,360,000 Greece .. ..... ... ...... .2,520,000 .25 1,004 .40 - 2,520,000 Guatemala................. 400,000 .04 580 .23 - 400,000 Guyana ...........810,000 .08 662 .27 - 810,000 Haiti ... .... ..... .......760,000 .08 652 .26 - 760,000 (continued) Statement of Subscriptions, Voting Power Appendix E International Development and Supplementary Resources (continued) association June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Supplementary Subscriptions Voting Power Resources Total --- ---- - ---- --- Subscriptions Total Total and (Notes C Percent Number Percent (Notes C Supplementary Member (1) and G) of total of votes of total and G) Resources Honduras ....... . ......................... $ 300,000 .03 560 .23 $ - $ 300,000 Iceland 100,000 .01 520 .21 - 100,000 India 40,350,000 4.03 8,570 3.44 - 40,350,000 Iran 4,540,000 .45 1,408 .57 - 4,540,000 Iraq 760,000 .08 652 .26 - 760,000 Ireland 3,030,000 .30 1,106 .44 - 3,0307000 Israel 1,680,000 .17 836 .34 - 1,680,000 Ivory Coast 1,010,000 .10 702 .28 - 1,010,000 Jordan 300,000 .03 560 .23 - 300,000 Kenya. . . ......... ......... ............... ......... 1,680,000 .17 836 .34 - 1,680,000 Korea ... . ...... ......... ... 1,260,000 .13 752 .30 - 1,260,000 Laos 500,000 .05 600 .24 - 500,000 Lebanon 450,000 .05 590 .24 - 450,000 Liberia 760,000 .08 652 .26 - 760,000 Libya 1,010,000 .10 702 .28 - 1,010,000 Malagasy Republic 1,010,000 .10 702 .28 - 1,010,000 Malawi 760,000 .08 652 .26 - 760,000 Malaysia ........................ .................... 2,520,000 .25 1,004 .40 - 2,520,000 Mal. 870,000 .09 674 .27 - 870,000 Mauritania 500,000 .05 600 .24 - 500,000 Mexico . 8,740,000 .87 2,248 .90 - 8,740,000 Morocco 3,530,000 .35 1,206 .49 - 3,530,000 Nepal. 500,000(2) .05 600 .24 - 500,000 Nicaragua. 300,000 .03 560 .23 - 300,000 Niger. 500,000 .05 600 .24 - 500,000 N ig e ria ............ ................................. 3,360,000 .34 1,172 .47 - 3,360,000 Pakistan 10,090,000 1.01 2,518 1.01 10,090,000 Panama 20,000 (3) 504 .20 - 20,000 Paraguay 300,000 .03 560 .23 - 300,000 Peru 1,770,000 .18 854 .34 - 1,770,000 Philippines 5,040,000 .50 1,508 .61 - 5,040,000 Rwanda 760,000 .08 652 .26 - 760,000 Saudi Arabia 3,700,000 .37 1,240 .50 - 3,700,000 Senegal ........ 1,680,000 .17 836 .34 - 1,680,000 Sierra Leone ................ .......... ....... 760,00012) .08 652 .26 - 760,'J00 Somalia ............. .............. .......... 760,000 .08 652 .26 - 760,000 Spain ..... ......... ............ ............. . , .. 10,090,000 1.01 2,518 1.01 - 10,090,000 Sudan .................. .......... ...... ........ 1,010,000 .10 702 .28 - 1,010,000 Syrian Arab Republic .................... 950,000 .09 690 .28 - 950,000 Tanzania .................................. .......... 1,680,000 .17 836 .34 - 1,680,000 Thailand .......... .................................. 3,030,000 .30 1,106 .44 - 3,030,000 Togo .................. . ...... ............ 760,000 .08 652 .26 - 760,000 Tunisia ................ ...... ...................... 1,510,000 .15 802 .32 - 1,510,000 Turkey ................. ...................... ...... 5,800,000 .58 1,660 .67 - 5,800,000 Uganda ............................................. 1,680,000 .17 836 .34 - 1,680,000 United Arab Republic .................. ............. 5,080,000 .51 1,516 .61 - 5,080,000 Upper Volta ....... ......................... ........ 500,000 .05 600 .24 - 500,000 Viet-Nam ........................................... 1,510,000 .15 802 .32 - 1,510,000 Yugoslavia ....................................... 4,040,000 .40 1,308 .53 - 4,040,000 Zambia ....................................... ... 2,690,000 .27 1,038 .42 - 2,690,000 TOTAL PART II MEMBERS-Note B ................... $ 248,877,000 24.90 89,775 36.06 $ - $ 248,877,000 GRAND TOTALS .................. ................. $1,000,222,000 100.00 249,044 100.00 $772,870,000 $1,773,092,000 (1) Members whosesubscriptions may befreelyused or exchanged bytheAssociation and who have participated inthereplenishmentof the Association's resources are included in Part I. All other members are included in Part II. t2) Amounts in the equivalent of $3,464,982 are due as a result of devaluation of these currencies. (3) Less than .005 percent. Notes to Finiancial Statements Appendix F International Development Association June 30, 1968 Note A and to the extent that such currency shall not Note G Amounts in currencies other than United have been initially disbursed or exchanged Subscriptions and supplementary resources States dollars havebeentranslated into United for the currency of another member. are expressed in terms of United States States dollars: Supplementary resources of the Association dollars of the weight and fineness in effect (i) In the cases of 70 members, at the par have, by agreement, the same respective on January 1, 1960. values as specified in the "Schedule of Par rights and obligations as to maintenance of Values", published by the International Mon- value as are set forth in Article IV, Section 2, Note H etary Fund; of the Articles of the Association. The accumulated net income has been (ii) In the cases of the remaining 28 members The equivalent of $3,464,982 is due from five charged with $1,061,006 representing a loss to [Algeria, Argentina, Bolivia, Brazil, Cam- members in order to maintain the value of the the Association as a result of devaluation on eroon, Central African Republic, Chad, Chile, Association's currency holdings as required the books of the Association of the balance China, Colombia, Congo (Brazzaville), Dem- under Article IV, Section 2. of the amount in pounds sterling held at the ocratic Republic of Congo, Dahomey, Gabon, date of devaluation in November 1967 and The Gambia, Ivory Coast, Korea, Laos, Mala- Note D acquired from net earnings. gasy Republic, Mali, Mauritania, Niger, Para- The International Bank for Reconstruction guay, Peru, Senegal, Togo, Upper Volta and and Development has authorized transfers, Note I Viet-Nam], at the rates used by such mem- by way of grants, to the Association totaling With effect from July 1, 1967 the Executive bers in making payments of subscriptions to $210,000,000 from the net income of the Bank Directors approved a change in budgetary the Association. for the fiscal years ended June 30, 1964, 1965, procedure whereby the Association will pay Note B 1966 and 1967. Of this amount, $167,300,000 to the Bank a single management fee in place Pursuant to Article IV, Section 1 (a), these has been received as of June 30, 1968. of the previous system under which the Asso- ciation reimbursed the Bank for a number of amounts may be used by the Association for Note E individual expense items. For the fiscal year administrative expenses incurred bythe Asso-ThAsoitohaeneeinoaage-16temngmntfewssabsedt ciation in the territories of any member whose The Association has entered into an agree g currency is involved and, insofar as consistent ment with the Swiss Confederation whereby $4,216,061 which was the amount of the ex- with sound monetary policies, in paymentfor the Confederation will lend SwF52 million penses of the Association in fiscal year 1967. goodsand services produced intheterritories (approximately U.S. equivalent $12.1 million) of such member and required for projects to the Association. Under the agreement the General financed by the Association and located in proceeds will be made available in three equal The Executive Directors have recommended such territories; and in addition when and to instalments on July 1 of the years 1968, 1969 to the Board of Governors resolutions author- the extent justified by the economic nand o- and 1970. The loan will carry no interest and izing the Association to accept from Part I cial situation of the member concerned as will be repayable in forty annual instalments Countries additional contributions as a sec- determined by agreement between the mem- beginning July 1, 1979. The first ten instal- ond replenishment of the resources of the ber and the Association, such currency shall ments will be at 1% each of the principal Association aggregating $1,188 million in be freely convertible or otherwise usable for amount and the remaining thirty instalments freely convertible currencies payable in three projects financed by the Association and will be at 3O% of such principal amount, equal instalments on or before November 8, located outside the territories of the member. Note F in each of the years 1968, 1969 and 1970. None of these contributions shall become payable Note C The principal disbursed and outstanding on uniessatleastl2contributingmemberswhose Under Article IV, Section 2, each member is development credits and the accrued service contributions aggregate not less than $950 required, if the par value of its currency is charge are expressed in terms of United million shall each have given the Association reduced or the foreign exchange value of its States dollars of the weight and fineness in on or before September30, 1968, or such later currency has in the opinion of the Association eftect on January 1, 1960 and the equivalent date as the Executive Directors may deter- depreciated to a significant extent within that is payable by the borrowers in currencies mine, formal notification that it will make the member's territories, to maintain the value of which the Association determines to be freely contribution authorized for such member in the. Association's holdings of its ninety per- convertible or freely exchangeable by the accordance with the terms of the resolutions. cent currency, including the principal amount Association for currencies of other members of any notes substituted therefor, and the of the Association, except that such amount In addition to the above, the Swedish Govern- Association is required if the par value of the would be reduced if (a) there is a uniform ment has made a special supplementary con- member's currency is increased, ortheforeign proportionate reduction in the par values of tribution to the Association's resources of exchange value ofthe member's currency has the currencies of all members of the Inter- $21,360,000 payable in the fiscal years 1969, in the opinion of the Association appreciated national Monetary Fund or (b) the Association 1970 and 1971. Also, the Government of Nor- to a significant extent within that member's so decides because of a substantial reduction way proposes, subject to the effectiveness of territories,toreturntothemembertheincrease in the value of one or more major currencies the second replenishment referred to above, in the value of such ninety percent currency of members. The foregoing does not apply to to make a supplementary contribution of held by the Association; provided, however, a credit of $9,000,000 which is expressed and $1,320,000 payable in calendar years 1968, 1969 that the foregoing shall apply only so long as is repayable in legal tender dollars. and 1970. Opinion of Independent Auditor Financial Statements Covered by the Foregoing Opinion 1707 L STREET, N.W. WASHINGTON, D.C. 20036 AUGUST 1, 1968 To INTERNATIONAL DEVELOPMENT ASSOCIATION WASHINGTON, D.C. In our opinion, the accompanying financial statements present fairly, Statement of Condition ..................... Appendix A (page_84) in terms of United States currency, the financial position of Interna- C tional Development Association at June 30,1968, and the results of Comparative Statement of Income and its operations for the year then ended, in conformity with generally xpenses.Appendix B (page 85) accepted accounting principles applied on a basis consistent with Statement of Holdings of Currencies and that of the preceding year. Our examination of these statements Obligations ..... ........... Appendix C (page 86) was made in accordance with generally accepted auditing standards, Summary Statement of Development Credits. Appendix D (page 88) and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in Statement of Subscriptions, Voting Power the circumstances. and Supplementary Resources ............. Appendix E (page 89) Notes to Financial Statements ............ Appendix F (page 91) PRICE WATERHOUSE & CO. Bank/IDA Appendices Page I Bank Loans and IDA Credits by Purpose and Area ....... ........................... 94 2 Bank Loans and IDA Credits by Country ........... ......... .......... .... - .. 96 3 Administrative Budgets of the Bank and IDA . .......... ................0 ......... 98 4 Governors and Alternates of the Bank and IDA ...... ........................... .... 99 5 Executive Directors and Alternates of the Bank and IDA and their Voting Power . 1.01. . t0t 6 Principal Officers of the Bank and IDA .......................................... 102 Bank Loans and IDA Credits by Purpose and Area Cumulative Total, June 30, 1968 Expressed in millions of US Dollars, initial commitments net of cancellations, refundings and terminations Bank Loans by Area Total Asia and Western Bank and Middle Austral- Hemi- Purpose IDA Total Africa East asia Europe sphere IFC GRAND TOTAL .... ....... .... $13,035.3 $11,246.9 $1,411.9 $3,777.2 $519.8 $2,238.3 $3,199.8 $100.0 ELECTRIC POWER ................... $ 3,948.6 $ 3,826.4 $ 457.5 $ 768.7 $182.3 $ 590.5 $1,827.4 $ - TRANSPORTATION .... $ 4,256.1 $ 3,639.1 $ 586.0 $1,597.5 $181.4 $ 504.9 $ 769.3 $ - Railways . .1,788.8 1,513.2 338.0 648.4 79.3 272.4 175.2 Shipping .12.0 12.0 - - - 12.0 - Ports and waterways .425.1 399.4 41.6 218.5 7.1 86.9 45.4 Roads .1,894.3 1,578.6 156.4 696.0 50.9 126.5 548.8 Airlines and airports .56.9 56.9 - 5.6 44.1 7.2 - Pipelines.. 79.0 79.0 50,0 29.0 - - - TELECOMMUNICATIONS ... $ 218.9 $ 144.1 $ 22.2 $ 27.0 $ - $ 0.3 $ 94.6 $ AGRICULTURE, FORESTRY AND FISHING $ 1,252.9 $ 942.3 $ 95.0 $ 344.0 $103.4 $ 87.8 $ 312.3 $ Farm mechanization .172.4 135.5 3.9 4.0 89.4 2.0 36.2 Irrigation and flood control .722.9 527.4 47.5 284.7 6.0 73.3 116.0 Land clearance, farm improvement, etc., 132.4 90.6 41.6 27.6 6.0 2.2 13.3 Crop processing and storage .37.5 14.2 1.1 1.3 - 4.2 7.6 Livestock improvement. 154.5 141.4 0.9 4.4 - - 136.1 Forestry and fishing .33.3 33.3 - 22.0 2.0 6.2 3.1 INDUSTRY .$ 2,283.6 $ 1,782.5 $ 203.0 $ 918.0 $ 52.7 $ 464.2 $ 144.6 $ - Iron and steel . 414.3 414.3 - 344.1 13.4 26.9 30.0 - Pulp and paper 134.8 134.8 - 4.2 1.1 109.5 20.0 - Fertilizer and other chemicals .112.0 112.0 30.0 25.0 0.3 56.8 - - Other industries .721.0 259.6 20.5 5.2 23.8 174.7 35.4 - Mining, other extractive .197.1 197.1 101.0 48.3 14.2 11.9 21.7 - Development finance companies ... 704.4 664.7 51.5 491.2 - 84.4 37.5 - GENERAL DEVELOPMENT $ 205.0 $ 205.0 $ 40.0 $ 75.0 $ - $ 90.0 $ - $ - EDUCATION $ 162.0 $ 34.9 $ 6.6 $ 12.0 $ - $ - $ 16.3 $ - WATER SYSTEMS .$ 1C8.2 $ 74.2 $ - $ 35.0 $ - $ 3.9 $ 35.3 $ - POST-WAR RECONSTRUCTION. $ 496.8 $ 496.8 $ - $ - $ - $ 496.8 $ - $ - PROJECT PREPARATION. ................ $ 3.3 $ 1.7 $ 1.7 $ - $ - $ - $ - $ - FINANCING LOAN (IFC) ................. $ 100.0 $ 100.0 $ - $ - $ - $ - $ - $lf.0 Note: Details may not add to totals because of rounding. Detailed Statements of Bank Loans and IDA Credits are available on request. Appendix 1 IDA Credits by Area Asia and Western Middle Hemi- Total Africa East Europe sphere $1,788.4 $309.8 $1,280.6 $80.5 $117.5 $ 122.2 $ 10.0 $ 67.5 $25.7 $ 19.0 $ 617.0 $149.0 $ 390.7 $ - $ 77.3 275.6 18.1 257.5 - - 25.7 - 25.7 - - - 315.7 130.9 107.5 - 77.3 $ 74.8 $ - $ 74.8 $ - $ - $ 310.6 $ 56.6 $ 220.9 $20.0 $ 13.1 36.9 1.5 35.4 - - 195.5 13.0 162.5 20.0 - 41.8 38.0 3.8 - - 23.3 4.1 19.2 - - 13.1 - - - 13.1 $ 501.1 $ - $ 466.3 $34.8 $ 461.4 - 461.4 - - 39.7 - 4.9 34.8 - $ - $- $-$- $- $ 127.1 $ 92.5 $ 29.5 $ - $ 5.1 $ 34.0 $ 1.1 $ 29.9 $ $ 3.0 $ - $ - $_ $ - $ - $ 1.6 $ 0.6 $ 1.0 $ - $ - $ - $ - $ - $- $ - Bank Loans and IDA Credits by Country Cumulative Total, June 30, 1968 Expressed in United States Currency-Initial commitments net of cancellations, refundings and terminations Bank Loans IDA Credits Total Number Amount Number Amount Number Amount Afghanistan ........ .. ... ..... .... - $ - 1 $ 3,500,000 1 $ 3,500,000 Algeria ............ ...... ...................... 3 80,500,000 - - 3 80,500,000 Argentina ........................ ... 4 195,651,234 - - 4 195,651,234 Australia ............. ...I........ ....... 7 417,730,000 - - 7 417,730,000 Austria ............... ............ 9 104,860,083 - - 9 104,860,083 Belgium .............. ............. . 4 76,000,000 - - 4 76,000,000 Bolivia ............ ............................. - - 3 17,000,000 3 17,000,000 Botswana ...... .................. ............. - - 1 3,600,000 1 3,600,000 Brazil .. : 23 558,134,660 - - 23 558,134,660 Burma ................. .......... ....... 3 33,123,943 - - 3 33,123,943 Burundi ....................... ................. 1 4,800,000 1 1,100,000 2 5,900,000 Cameroon ................................... 1 7,000,000 2 11,550,000 3 18,550,000 Ceylon .................. .................... 4 41,312,258 1 2,000,000 5 43,312,258 Chile . ........................ 14 201,843,187 1 19,000,000 15 220,843,187 China 7 104,246,796 4 13,O83,716 11 117,330,512 Colombia. 32 499,952,839 1 19,500,000 33 519,452,839 Congo (Brazzaville) . . 1 30,000,000 - - 1 30,000,000 Congo, Democratic Republic of 5 91,582,854 - - 5 91,582,854 Costa Rica ..8 50,676,251 1 4,550,243 9 55,226,494 Cyprus ..2 18,068,412 - - 2 18,068,412 Denmark 3 85,000,000 - - 3 85,000,000 Ecuador 8 58,000,000 2 13,100,000 10 71,100,000 El Salvador.. . 8 53,018,632 1 8,000,000 9 61,018,632 Ethiopia. .. 9 70,200,000 3 28,400,000 12 98,600,O00 Finland 13 221,534,346 - - 13 221,534,346 France 1 250,000,000 - - 1 250,000,000 Gabon 3 48,800,000 - - 3 48,800,000 Ghana 1 47,000,000 1 10,000,000 2 57,000,000 Greece 1 12,500,000 - - 1 12,500,000 Guatemala 3 40,200,000 - - 3 40,200,000 Guinea 1 1,700,000 - - 1 1,700,000 Guyana 1 919,017 - - 1 919,017 Haiti 1 2,600,000 1 349,855 2 2,949,855 Honduras 8 46,817,613 3 15,927,974 11 62,745,587 Iceland 7 25,914,000 - - 7 25,914,000 India 36 1,007,241,757 21 887,444,080 57 1,894,685,837 Iran 11 334,949,204 - - 11 334,949,204 Iraq 2 29,293,946 - - 2 29,293,946 Israel 5 109,412,479 - - 5 109,412,4r9 Italy 8 398,028,000 - - 8 398,028,000 Ivory Coast o a s 2 12,891,567 - 2 12,891,567 Jamaica 4 37,012,988 - - 4 37,012,988 Japan 31 857,041,004 - - 31 857,041,004 Jordan - - 4 10,015,502 4 10,015,502 Kenya e n y 5 85,200,000 8 39,000,000 13 124,200,000 Korea .1 5,000,000 2 24,992,924 3 29,992,924 Lebanon- .1 27,000,000 - - 1 27,000,000 Lesotho.. - - 1 4,100,000 1 4,100,000 Liberia .2 4,250,000 - - 2 4,250,000 Luxembourg ........................ ....... 1 11,761,983 - - 1 11,761,983 Appendix 2 Bank Loans IDA Credits Total Country Number Amount Number Amount Number Amount Malagasy Republic .................I.......... 1 $ 4,800,000 1 $ 10,000,000 2 $ 14,800,000 Malawi ........................................ - - 5 27,500,000 5 27,500,000 Malaysia ..... . . 7 194,500,000 - - 7 194,500,000 Mali'0 -- - - 1 9,100,000 1 9,100,000 Malta .......................................... 1 6,040,080 - - 1 6,040,080 Mauritania ................... ................ 1 66,000,000 1 6,700,000 2 72,700,000 Mauritius . , , - , - .......... 1 6,973,119 - - 1 6,973,119 Mexico .............. ....................... 21 766,905,679 - - 21 766,905,679 Morocco... ..... ................ ....... 4 59,749,041 1 11,000,000 5 70,749,041 Netherlands ........... .................. 10 236,451,985 - - 10 236,451,985 New Zealand ....................... .... ..... ... 4 102,114,000 - - 4 102,114,000 Nicaragua . .......... ...... ..... .. 15 59,858,828 1 2,994,834 16 62,853,662 Niger. - - 1 1,500,000 1 1,500,000 Nigeria ........ ............... 6 185,500,000 2 35,500,000 8 221,000,000 Norway ...................... ............... 6 145,000,000 - - 6 145,000,000 Pakistan .... .................. .. 24 459,868,943 24 331,107,250 48 790,976,193 Panama ...... ........ . ...... ...... ... 5 18,047,426 - - 5 18,047,426 Papua and New Guinea. . ..... ............. 1 7,000,000 - - 1 7,000,000 Paraguay ...... ........................... 4 11,538,990 3 17,100,000 7 28,638,990 Peru 23 214,221,936 - - 23 214,221,936 Philippines ............ ........... ....... 10 146,270,713 - - 10 146,270,713 Portugal ..... .......... 5 57,500,000 - - 5 57,500,000 Rhodesla(c) ................. ......... 3 86,950,000 - - 3 86,950,000 Senegal') ... ............... ............. . 1 4,000,000 1 9,000,000 2 13,000,000 Sierra Leone . ... .......... ......... .... 1 3,800,000 - - 1 3,800,000 Singapore ............................. .. 6 72,200,000 - - 6 72,200,000 Somalia ..... .. - - 2 8,500,000 2 8,500,000 South Africa ....................... 11 241,800,000 - - 11 241,800,000 Spain .4. , .......... . 188,000,000 - - 4 188,000,000 Sudan ...................... .......... 5 129,000,000 2 21,500,000 7 150,500,000 Swaziland ....................... ...... 2 6,950,000 1 2,800,000 3 9,750,000 Syria ..... ................ ................ - - 1 8,500.000 1 8,500,000 TanzaniaWb) ......... ... ......... .....l 1 5,200,000 4 26,600,000 5 31,800,000 Thailand . ..................................... 19 292,012,771 - - 19 292,012,771 Trinidad and Tobago ............................. 3 34,990,424 - - 3 34,990,424 Tunisia ...................... ............ 4 33,985,481 3 23,862,598 7 57,848,079 Turkey ........................ .............. 7 70,684,967 7 80,499,464 14 151,184,431 L,lganda(bY ..... .. . ..... 1 8,400,000 3 18,400,000 4 26,800,000 United Arab Republic ..................... 1 56,500,000 - - 1 56,500,000 Upper Volta( a)- Uruguay .... ................. 6 102,163,116 - - 6 102,163,116 Venezuela ........ ............................ 7 247,266,783 - - 7 247,266,783 Yugoslavia ............. ....... . ............ 11 330,990,547 - - 11 330,990,547 Zambia)- . .................................. 4 84,850,000 - - 4 84,850,000 International Finance Corporation ................ 1 100,000,000 - - 1 100,000,000 TOTAL ....................................... 552 $11,246,853,882 127 $1,788,378,440 679 $13,035,232,322 (a) One loan for $7.5 million shown against Ivory Coast is shared with Mali, Senegal and Upper Volta, (b Three loans aggregating $75 million shown against Kenya are shared with Tanzania and Uganda. (c Three loans totaling $106.7 million have been assigned in equal shares to Rhodesia and Zambia. Administrative Budgets of the Bank and IDA Appendix 3 For the Fiscal Year Ending June 30,1969 Actual Expenses Budgets 1968 1969 Regular Operations BOARD OF GOVERNORS $ 861,361 $ 708,000 EXECUTIVE DIRECTORS ...... , 1,255,050 1,389,000 OFFICES AND DEPARTMENTS Personal Services . ............,.,.,.,. 16,730,831 19,769,000 Staff Benefits . ......... 4,041,632 3,547,000 Travel,......... . , 3,106,442 3,492',000 Representation . .150,235 150,000 24,029,140 26,958,000 RESIDENT MISSIONS .......... 593,515 563,000 COOPERATIVE PROGRAMS: FAO .,. 268,991 339,000 Unesco 64,721 75,000 CONSULTANTS . ........... 514,289 653,000 FEES AND COMPENSATION ........... 414,643 432,000 DATA PROCESSING ................. 475,050 785,000 OTHER EXPENSES Communications .... ...... ... . 891,033 968,000 Supplies and Materials.. . 246,257 254,000 Office Occupancy . ................ 1,831,167 2,560,000 Furniture and Equipment ............... 370,149 615,000 Printing ...... ............ . 463,882 572,000 Books and Periodicals .,,.. ... 52,301 52,000 Library ....,.. , ,.. 243,896 266,000 Insurance .,.. ............. 131,537 174,000 Other ... . . .. . . . .. ..... 26,242 30,000 4,256,464 5,491,000 CONTINGENCY ...... - 350,000 Total Regular Operations . . . 32,733,224 37,743,000 Services to Member Countries Development Advisory Services . , 3,791,841 4,731,000 Training Programs. . . .. 1,364,024 1,507,000 Settlement of Investment Disputes ..,.. 92,982 84,000 Total Services to Member Countries . . . 5,248,847 6,322,000 TOTALS . ...... , ..... $37,982,071 $44,065,000 Bank ., . ..... ..... $33,766,010 $39,865,000 IDA .....,,., ... $ 4,216,061 $ 4,200,000 The Administrative Budgets for the fiscal year ending June 30, 1969, were prepared by the President and approved by the Executive Directors in accordance with the By-Laws of the Bank and IDA. For purposes ot comparison the administrative expenses incurred during the fiscal year ended June 30, 1968, are also shown. The Association reimburses the Bank a single management fee for administrative expenses incurred on its behalf. For fiscal year 1969, this management fee, which comprises the Association's Budget for the year, has been established at $4,200,000, approximately the same level as the fee for fiscal year 1968. Governors anid Alterniates Appendix 4 of the B3ank and IDA June 30, 1968 Member Governor Alternate Afghanistan .......,.. hammed Enwer Ziyaie ...... Abdul Aziz Atayee Algeria ...... .... Ahmed Kaid . ....... _ . ...... .. Kamal Abdellah Khodia Argentina .......... ....... .... Pedro Eduardo Real . .. .. ...... Ernesto Malaccorto Australia . ....... .... ... William McMahon .... ...... ...Sir Roland Wilson Austria. .............. Stephan Koren . ... ........ ... Walter Neudorfer Belgium .. ..... .... .... R. Henrion . ....... ... Hubert Ansiaux Bolivia. Jorge Jordan Ferrufino .. . ......Enrique Vargas Guzman Botswana* .... . . M. K. Segokgo . . S. W. Assael(lt Brazil ... ....... . ......... Antonio Delfim Netto . . Ernane Galveas Burma . .................. Kyaw Nyein . .Chit Moung Burundi . ... ... ...... Bonaventure Kidwingira . . Bernard de Martrin-Donos Cameroon . ..... ...... Laurent Ntamag . ............ .. Alfredo Ekoko Mpondo Canada . .Edgar John Benson ............ .. A. B. Hockin Central African Republic. , . B. C. Ayandho . . A. Zanife-Touambona Ceylon . . U. B. Wanninayake .... . ........ . H. Jinadasa Samarakkody Chad . .... , , Georges Diguimbaye . ............. . Jean Nendigui Chile . .Carlos Massad Abud .... Jorge Marshall Silva China . . ... Kuo-Hwa Yu Colombia . . ... Abd6n Espinosa Valderrama Congo (Brazzaville) . . .. ..... ... Bernard Banza Bouiti . . ......... Jean Moumbouli Congo, Democratic Republic of . Paul Mushiete .Jacques Bongoma Costa Rica . . Omar Dengo 0 . ........... Alvaro Vargas E. Cyprus. . ... ............. A. C. Patsalides Dahomey . ..... .. . .,., Stanislas Kpognon . ..... ....... Gilles Florent Yehouessi Denmark ..... - - -Otto Muller . ........... ..... Karl Otto Bredahl Dominican Republic . . Di6genes H. Fernandez . . . Luis M. Guerrero Gomez Ecuador. . Manuel Correa Arroyo . . Guillermo Perez Chiriboga El Salvador . ..... . Edgardo Suarez C. ... . ..... Armando Interiano Ethiopia . .. ....... Yilma Deressa . . Bulcha Demeksa Finland .... Mauno Koivisto . . . Jussi Linnamo France . .. , , Minister of Finance .. Bernard Clappier Gabon ... Emile Kassa-Mapsi . .Pierre Fanguinoveny Gambia, The ......... , S. M. Dibba . . H. R. Monday, Jr. Germany . .Karl Schiller. . . Franz Josef Strauss Ghana ........_ ....... ... A. A. Afrifa . .. .... . ........... E. N. Omaboe(ll Greece ....... John Rodinos-Orlandos ...... . .... Achilles Cominos Guatemala ...... Mario Fuentes Pieruccini ......... . Jose Luis Bouscayrol Guinea"' .. .. ........ ..... ... Bala Camara . . F Ntaly Sangar6 Guyana . .............. . P. A. Reid.. H. 0. E. Barker Haiti.... .. Clovis Desinor . . Antonio Andre Honduras ..... Manuel Acosta Bonilla . . Ricardo Zuniga Augustinus Iceland ..................... Gylfi Gislason .... . ..... .Magnus J6nsson India . .. . Morarji R. Desai . ............. i. G. Patel lndonesia21. All Wardhanal .. . Djoeana Koesoemohardja Iran ...... Jamshid Amouzegar . . Jahangir Amuzegar Iraq . ...... ............ Sa leh Kubba(l1. . Sauadi Ibrahim Ireland Charles J. Haughey . . .... ...... T. K. Whitaker Israel .. .......... David Horowitz . . Jacob Arnon Italy . . . ......... -- ... Guido Carli . ....... Paolo Bafft Ivory Coast. Konan Bedi . . Mohamed Diawara Jamaica"'. Edward Seaga . .G. Arthur Brown Japan . , .......... Mikio Mizuta. .. ........ Makoto Usami Jordan .......... Hatim S. Zu bi . ...... . , , Adel Shamayleh Kenya . ............ ..... J. S. Gichuru . .John Njoroge Michuki Korea ... .............. Jong Ryul Whang . .Chin Soo Suh Kuwait . . Abdul Rahman Salim Al-Ateeqi. . Abdlatif Y. Al-Hamad Laos . . ....... Sisouk Na Champassak . . ......... Oudong Souvannavong Lebanon . ........ Khalil Salem ................... Raja Himadeh Lesotho* i(2), . .. . . . ... . Liberia . . ....... J. Milton Weeks ................ Cyril Bright Libya . ........ Giuma Saleh El-Turki .... .... Ali A. Attiga Luxembourg . ........ ,... Pierre Werner . ............... Albert Dondelinger (continued) Governors and Alternates Appendix 4 of the 3ank and IDA (continued) June 30, 1968 Memoer Governor Alternate Malagasy Republic . ... Rakotovao Ralison Malawi. ...... , J. Z. U. Tembo. ............. K. J. Barnes Malaysia. .... Tan Siew Sin ...... ..............Mohamed Sharif bin Abdul Samad Mali ......... . .................. Ti6oule KonatWl) 1................. Sekou Sangar'l! Mauritania ....... Moktar Ould Haiba .. ........... Ahmed Ould Daddah Mexico. ..Antonio Ortiz Mena. , ,Jose Hernandez Delgado Morocco . ................ Mamoun Tahiri . Mohamed Benkirane Nepal ....... Kirti Nidhi Bista .Bhekh Bahadur Thapa Netherlands .... ...... _ H. J. Witteveen. : .... . ..... .... I J. H. 0. graaf van den Bosch New ZealandW) ..... .... N. R. Davis .N ......... , . .. , V. Lough Nicaragua . ........... Guillermo Sevilla-Sacasa ...... ..... Arnoldo Ramirez-Eva Niger .Alidou Barkire ........ ........... Karimou Goukoye Nigeria.0 . Awolowo . ................... Abdul Aziz Atta Norway . ..... Kare Willoch ...... ........ Christian Brinch Pakistan...... . N. M. Uquaili : d... Ghulam Ishaq Panama. ....... Alfredo Aleman, Jr ........... Oscar Ucros Paraguay ....... ............ C6sar Romeo Acosta ..... . Oscar Stark Rivarola Peru ... .... Celso Pastor .... Tulio De Andrea Philippines . ...... , Eduardo Z. Romualdez ......... ... Roberto S. Benedicto PortUgal(a) ...... , , Ulisses Cortes .. ............... Luis M. Teixeira Pinto Rwanda .... ...........i . Fdele Nzanana(l ' .......... .... Fidele Nkundabagenzi'" Saudi Arabia .................. Ahmed Zaki Saad Senegal ........ Abdou Diout. ............ Hamet Diop Sierra Leone ........M............ M. S. Forna ......... . .......... Elkanah Laurence CokerO) Singapore02) ..... ... Goh Keng Swee. Hon Sui Sen Somalia ........ , Abdullahi Jirreh Dualeh .Giuseppe Morasca South Africa. ........ Nicolaas Diederichs ... .... Theunis Willem de Jongh Spain. Juan Josi Espinosa ... ....... Mariano Navarro Rubio Sudan .. Sayed El Sherif Hussein El Hindi ...... Sayed Abdalla Siddig Ghandour Sweden . ... : G. E. Strang . ................ .......... .... Krister Wickman Syrian Arab Republic ............. Mouaffaq Shourbaji .Ahmad Nizar Al-Jabi Tanzania .... ............ P. Bomani .J. D. Namfua Thailand ............. .... Serm Vinicchayakul ... . ............ Bisudhi Nimmanahaeminda Togo ....... .......... Boukari Djobo. .............. Jean Tevi Trinidad and Tobago(0) ......... F. C. Prevatt ............. William G. Demas Tunisia . .......... Ahmed Ben Salah. .......... Ali Zouaoui Turkey.C ......... ... ihat Bilgehan ., Kemal Canturk(') Uganda. ........ . Laurence Kalule-Settala .A. J. P. M. Ssentongo United Arab Republic. Hassan Abbas Zaki .... Hamed Abdel Latif El Sayeh United Kingdom. Sir Leslie O'Brien . : .... Sir Douglas Allen United States ....... ........... . Henry H. Fowler ................ Eugene V. Rostow Upper Volta .Pierre Claver Damiba ............... Pierre Tahita Uruguay(25 ...... Cesar Charlone Venezuela): ........ ... Rafael Alfonzo Ravard .... Francisco Mendoza Viet-Nam ........... Nguyen-Huu-Hanh .......... Nguyen Van Dong Yugoslavia . ........Janko Smole . Vladimir Geric Zambia. ...... ;.:.,.E. H. K. Mudenda ..............,.E. Kasonde *Became a member after June 30,1968. (')Appointmeent effective after June 30, 1968. :e)Member of the Bank only. Executive Directors and Alternates of the Appeindix 5 Bank anld IDA anid their Votinig Power June 30, 1968 Total Votes Executive Director Alternate Casting Votes of Bank IDA Appointed Livingston T. Merchant . .. Emmett J. Rice . ...... ...... United States ............. ........... ............... 63,750 64,558 E.W. Maude . ....... M. P. J. Lynch . . United Kingdom . .... 26,250 26,728 Ernst vom Hofe .... Jorg Jaeckel ................ Germany ... , . ........ ........................... 13,050 11,092 G-eorges Plescoff ....... ... Jean Malaplate . ...........France... .................................. ...... 10,750 11,092 S. Jagannathan . ....... S. Guhan. ........... India ........... ............................ ....... 8,250 8,570 Elected Joaquin Gutierrez Cano .. Felice Gianani . ....._.... Greece, Italy, Portugalt'), Spain ........ _ ........ ..... 11,794 7,654 (Spain) (Italy) Hideo Suzuki ........... Maung Gyi . .......... Burma, Ceylon, Japan, Nepal, Thailand ........ . ........ 11,316 10,934 (Japan) (Burma) L. Denis Hudon ............ Patrick M. Reid ... . ... Canada. Guyana, Ireland, Jamaica(1) . .................. 10,253 9,834 (Canada) (Canada) J. 0. Stone. .......... T J. Bartley . ..... Australia, New Zealand0), South Africa .. 9,880 7,054 (Australia) (Australia) S. Osman Alil2l .... . .Abdol Ali Jahanshahi ..I. ran, Iraq, Jordan, Kuwait, Lebanon, Pakistan, Saudi (Pakistan) (Iran) Arabia, Syrian Arab Republic, United Arab Republic 9,877 10,346 Reignson C. Chen ...... .... Chung Pum Song... ..China, Korea, Viet-Nam .......... ...... ..... 9,210 8,106 (China) (Korea) Andre van Campenhout .. Othmar Haushofer ...... ... Austria, Belgium, Luxembourg, Turkey ................ . 8,717 5,893 (Belgium) (Austria) Pieter Lieftinck ........... Zoran Zagar . ........... Cyprus, Israel, Netherlands, Yugoslavia .................. 8,676 8,844 (Netherlands) (Yugoslavia) Karl Skjerdal . .. ........ Vilhjalmur Th6r . ...... Denmark, Finland, Iceland, Norway, Sweden ..... ...... 8,466 8,396 (Norway) (Iceland) Luis Machado . ........ Alfredo Valencia. Costa Rica, El Salvador, Guatemala, Haiti, Honduras, (Cuba) (Peru) Mexico, Nicaragua, Panama, Peru, Venezuela(') . ......... 7,803 7,058 S. Othello Coleman ...... Christopher Kahangi ......... Burundi, Ethiopia, Guinea('), Kenya, Liberia, Malawi, (Liberia) (Tanzania) Mali, Nigeria, Sierra Leone, Sudan, Tanzania, Trinidad and Tobago(1), Uganda, Zambia .7,702 9,302 Jorge Mejia-Palacio ...... .... Jose Camacho .......... Brazil, Colombia, Dominican Republic, Ecuador, (Colombia) (Colombia) Philippines .7,393 8,190 Abderrahman Tazi .. ........ Taoufik Smida .......... Afghanistan, Algeria, Ghana, Laos, Libya, (Morocco) (Tunisia) Malaysia, Morocco, Singapore('), Tunisia .7,030 7,294 Mohamed Nassim Kochman... Michel Bako ........ Cameroon, Central African Republic, Chad, Congo (Braz- (Mauritania) (Chad) zaville), Congo, Democratic Republic of, Dahomey, Gabon, Ivory Coast, Malagasy Republic, Mauritania, Niger, Rwanda, Senegal, Somalia, Togo, Upper Volta 6,783 10,802 Luis Escobar . . ...... Daniel Fernandez ..... ..... Argentina, Bolivia, Chile, Paraguay, Uruguay(')..... ....... 6,466 6,744 (Chile) (Argentina) In addition to the Executive Directors and Alternates shown in the foregoing list, the following also served as Executive Director or Alternate after June 30, 1967: Executive Director End of period of service Alternate Executive Director End of period of service J. M. Stevens .......... ..... August 8, 1967 Robert E. Radford ... .... . .... November 15, 1967 (United Kingdom) (United Kingdom) Ren6 Larre . . ...... August 31, 1967 Iddi Simba. .............. January 31,1968 (France) (Tanzania) K. S. Sundara Rajan . ........... March 28, 1968 (India) Otto Donner . ............. April 30, 1968 (Germany) Muhammad Ayub . ................ June 25, 1968 (Pakistan) (deceased) Note: Botswana (282 votes in the Bank and 532 votes in IDA), The Gambia (303 votes in the Bank and 553 votes in IDA), Indonesia (2,450 votes in the Bank) and Lesotho (282 votes in the Bank) are not yet formally represented by an Executive Director. Botswana and Lesotho have become members of the Bank, and Botswana also of IDA, since June 30, 1968. (1) Member of the Bank only. t2) As from July 30,1968. Principal Officers of the Bank and IDA Appendix 6 June 30, 1968 Robert S. McNamara ........ President J. Burke Knapp* ............ Vice President and Chairman, Loan Committee S. Aldewereld* ............. Vice President A. Broches* ................ General Counsel Richard H. Demuth* ........ Director, Development Services Department Irving S. Friedman*. ..The Economic Adviser to the President and Chairman, Economic Committee Sir Denis Rickett* ......... Vice President Mohamed Shoaib* .......... Vice President S. R. Cope ............ ... Director, Europe Department and Deputy Chairman, Loan Committee John H. Adler .............. Associate Director, Programming and Budgeting Department Gerald Alter ................ Director, Western Hemisphere Department Dragoslav Avramovic ....... Director of Special Economic Studies i. P. M. Cargill................ Director, Asia Department Robert W. Cavanaugh ....... Treasurer Bernard Chadenet .......... Director, Projects Department William Clark .............. Director of Information and Public Affairs Federico Consolo ........... Special Representative for UN Organizations Abdel G. El Emary ......... Director, Africa Department Harold N. Graves, Jr ...... ... Associate Director, Development Services Department Michael L. Hoffman ......... Associate Director, Development Services Department Andrew M. Kamarck ........ Director, Economics Department Arthur Karasz . .... . . Director, European Office K. S. Krishnaswamy ........ Director, Economic Development Institute Michael L. Lejeune .......... Director, Middle East and North Africa Department M. M. Mendels ...... .... Secretary Lester Nurick ............... Associate General Counsel Hugh B. Ripman ............ Director of Administration Leonard B. Rist ............. Special Adviser to the President J. H. Williams ...... ....... Director, Programming and Budgeting Department (vacant) ................ Director, New York Office*` 'Member, the President's Council. Mr. Cope serves as Mr. Knapp's Alternate on the President's Council. **Not an officer of IDA. N 11~~~~~~~~~~~~~~~~~~~~~ Be~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ _ vcowpl 19011will~~~~ 4k. ~ ~ ~ ~ ~ 1 -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~V -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~T- I '_ mo~~ M~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~i 1 ,, > < ~~~~~~. 9 6 ,,'- . " '_., 4, - t w X ~~~~~~~~~~~~~~-vi- ' ' '48 4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 -j / ~ ; -t - -- ? "--4 . . ., 1.. e eaqarer 188H tre, W,Wahngon .C 243,US.. eepon.E -36I -" f X"~ - V ' J>C- >M -i >Now York Office / 20 Exchange Place, New York, N.Y. 10005, U) S.A. Telephone, WHitehall 3-5400 - .s ' >>Ctri' 9>r stEuropean ORice/J4 Ave. d'lena, Parnst6e, France Telephone 553-25101r^ F - .; London Office / New Zealand House, Haymarket, London S.W. 1, England. Telephone: 930-3886 ......C e _p =<4~~.Cable Addresses /World Bank. INTBAFRAD, Intemational Development Association INDEVAS -z. r. ,. ,, .........................i - .r.................. ,-..... zC'2f~~~~~~~ ,, 2P>r,-t. ' 4-t 9 6 -. -; " t b& Wi XS X t02' - I? '4-~~~~~~~~~ k '4'~ ~ ~ ~~ ~~ ~~~~~~~~~ iz Jr~~~~~~~~~~~~~44$ ~ -