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The economic use of international resources in financing development projects by Leonard Rist,World Bank Special Representative for Africa (English)

This report presents the remarks delivered by Leonard Rist, World Bank Special Representative for Africa. This paper confine himself on the discussion of the appraisal techniques which we at the World Bank have, over the past fifteen years, learned to apply in our own lending for development projects. However, he believes that most of these techniques are applicable in virtually all development financing; certainly we have found they need very little modification to act as a satisfactory guide for putting the ‘soft loan’ resources of the International Development Association to work. Three questions are involved: how much can a country borrow from abroad; what sector should it preferably invest in; and how can individual projects be justified, mainly from an economic standpoint. Finally, one must recognize that government policies do have a major influence on a country's balance of payments, and thus on its ability to carry additional external debt. Creditworthiness depends importantly upon the success with which a government keeps the over-all demand for foreign exchange within the limits set by exports, invisible earnings and the proceeds of external borrowing and foreign aid. It will find this very difficult, if it adopts inflationary policies, since these tend to stimulate imports, to hamper exports, and so to encourage running-down of reserves or accumulation of short-term foreign obligations. It will find this difficult, too, unless it is prepared to face the unpleasant adjustments which are sometimes made necessary by a sudden fall in export earnings, a circumstance with which most of the primary producing countries have become only too familiar in recent years.

Details

  • Author

    Rist,Leonard

  • Document Date

    1961/12/13

  • Document Type

    Working Paper

  • Report Number

    112067

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Africa,

  • Region

    Africa,

  • Disclosure Date

    2020/04/27

  • Disclosure Status

    Disclosed

  • Doc Name

    The economic use of international resources in financing development projects by Leonard Rist,World Bank Special Representative for Africa

  • Keywords

    balance of payment; burden of debt service; lending to the poor; foreign exchange; foreign exchange income; financing development; agricultural development bank; flood control work; primary producing country; general tax revenues; rates of interest; cost of spare; public investment program; scarce resource; raw material; export earning; Market Studies; foreign borrowing; foreign supplier; international loan; economic sector; potential lender; Borrowing Countries; increased export; soft loan; Electric Power; irrigation scheme; competitive economy; financial return; foreign debt; market study; water supplies; short-term borrowing; external borrowing; financial disaster; road building; economic appraisal; iron mine; government budget; running cost; thermoelectric plant; management position; political acceptability; social attitude; Land tenure; repayment schedule; generating capacity; transmission network; extension work; local electricity; power supply; regulated monopolies; Public Utilities; classical economics; power system; limit pricing; discriminatory taxation; monopoly position; small area; rail transport; protection can; generate equipment; high capital; infant industry; river navigation; foreign obligation; agricultural worker; government investment; small industry; foreign investor; overseas investor; long-term capital; industrial region; industrial sector; industrialized nation; export trade; seagoing ship; hydroelectric scheme; local power; national income; investment choice; budgetary problem; power station; short-term debt; foreign assistance; local funds; financial difficulties; internal finance; borrowing capacity; capital subscription; export industry; debt rearrangement; capital good; export credit; investment possibility; tariff protection; international debt; managerial ability; international agency; private industry; industrial field; private capital; financial resource; export market; industrial investment; fare structure; living standard; power rate; social reform; independent management; public health; financing terms; borrowed fund; marketing cooperative; agricultural problem; credit scheme; voluntary contribution; international borrowing; agricultural lending; international fund; Agriculture

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Citation

Rist,Leonard

The economic use of international resources in financing development projects by Leonard Rist,World Bank Special Representative for Africa (English). Speech Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/364651538250973823/The-economic-use-of-international-resources-in-financing-development-projects-by-Leonard-Rist-World-Bank-Special-Representative-for-Africa