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Opening Remarks By A.W. Clausen President, The World Bank at the IDA Deputies Meeting (English)

These remarks were delivered by A.W. Clausen, President of the World Bank, at an IDA Deputies Meeting on November 22-23, 1982 in Washington, DC. President Clausen speaks about the launching of negotiations for IDA7. IDA7 is important for several reasons. First, in these troubled times a strong and clear signal is sorely needed that multilateral economic cooperation is not a waning enterprise, and that the world is not too fatigued to act in its own best interests. Second, a successful outcome for IDA7 would enable the most needy countries. In the world community to face the future with hope instead of cynicism and despair. And finally, the outcome of IDA7 is a vital piece in the mosaic that characterizes an increasingly uncomfortable relationship between the developed and developing countries. There is no question that a successful conclusion would restore a degree of equilibrium in the quality of economic dialogue between our richer and poorer member nations. The concessional financing requirements of the , poorest countries over the IDA7 period will 1 be immense. In addition to general economic trends around the globe we need to be mindful of some specific considerations when thinking of the desirable size of the next replenishment. The first of these is China. China's inclusion in the list of IDA-eligible countries has literally doubled the population whose needs the Association must address. The second specific issue is the deteriorating economic situation in sub-Saharan Africa, where most countries have suffered declines in average per capita income for about a decade. Yet IDA will be unable to fulfil this mandate without an unjustifiable reduction in its allocations for other countries if its resources are not boosted. The outcome of IDA7 should allow the Association a margin of flexibility in its ability to address the needs of its enlarged borrower community. The traditional method of dealing with countries in this category of intermediate creditworthiness has been through blending, whereby a country receives both IDA credits and IBRD loans. However, there are practical limitations on the ability to blend due to constraints on IDA's resources as well as creditworthiness limitations on access to IBRD's resources.

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Clausen,A. W.

Opening Remarks By A.W. Clausen President, The World Bank at the IDA Deputies Meeting (English). Presidential speech Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/925311540908998380/Opening-Remarks-By-A-W-Clausen-President-The-World-Bank-at-the-IDA-Deputies-Meeting