59521 Anne Krueger: Cautious Optimism on Globa Recovery by Ellen Tillier he Bank's World interviewed Anne O. Krueger, Vice more since the ratio of growth of trade to GNP is T President, Economics and Research, on the relation­ ship of trade and protectionism to the economic recov­ usually 1-1/2 to 1. Because young markets usually grow faster, a 4.5% growth in world trade would mean a 5% ery and to the prospects of development. to 5.5% growth for developing countries' trade. Q. What if the OECD growth rate is lower? Q. Mrs. Krueger, the recovery under way in some industrial countries is the brightest spot on the eco­ A. If the OECD countries only attain, say, a 2% growth nomic horizon since the recession began three years rate in 1984, the growth effect on developing countries ago. Can you describe the signs of this recovery? would be much slower, the pain of the necessary do­ mestic adjustments much greater and these countries' A. There are many encouraging indicators which point ability to pay for imports needed to stimulate their to a healthier economy. For instance, nominal interest growth would be deferred for another two or three rates have fallen well below their 1981 peak. Commod­ years with the attendant consequences. ity prices, excluding oil, which had fallen to historic lows, rose by 11 % from January to July this year. The Q. How is the transmission of the recovery to the volume of trade also appears to be rising. Here in the Third World to take place? United States, imports from developing countries rose A. For the recovery to reach developing countries, they 5% in the first quarter of 1983 compared to the same must have access to the developed country markets. As quarter last year. Traditionally, what takes place in the the Gross Domestic Product rises in developed coun­ large U.S. market is a reliable indicator of worldwide tries, the demand for imports from developing coun­ trends. tries also increases and stimulates developing econo­ Q. How do you expect the recovery in the industrial mies. Also, primary commodity prices generally rise world to affect the Third World? during recovery. A. Unfortunately, while there's no doubt that a recov­ Q. Is there any indication that the recovery is having ery is going on in the industrial countries, it's difficult some impact on developing countries? to predict how long it will last and how much it will A. The only indication at this point is that exports benefit the developing countries. A durable recovery in from developing countries have begun to increase, the developed countries hinges on success in prevent­ thanks to the recovery in the industrialized countries. ing a resurgence of inflation and simultaneously main­ Unfortunately, on the other side of the equation, there taining the momentum of recovery. In light of prospec­ is as yet no evidence that developing countries' im­ tive monetary-fiscal mixes that may be difficult. How ports have started to increase. much will be transmitted to the developing countries also depends on the maintenance of an open interna­ Q. Why? tional trading system. Liberal trade is a must for in­ A. Probably because the revenues earned from the in­ creased productivity in both developed and developing creased exports appear to be being used for debt servic­ countries. If protectionist measures prevent the growth ing. Policymakers in these countries realize that their of developing country exports, the transmission of the creditworthiness takes priority over anything else, in­ recovery will be aborted. cluding imports needed to resume growth. They are sacrificing growth in order to repay their debts. Q. What growth rate in the industrial countries is needed to sustain the recovery? Q. How are the developing countries to increase their A. If the group of industrialized countries-known as imports? the OECD countries-can attain a 3% growth rate or A. If the industrialized countries attain the 3% growth more in 1984, world trade should increase by 4.5% or rate in 1984, if no protectionist measures are applied COVER : Planting rice in the Mahaweli Ganga area. Photo by Yosel Hadar 2 THE BANK'S WORLD/NOVEMBER 1983 <0 al I ~ o >­ >­ .0 o o .r:. a.. against products from developing countries, and if the developed countries sustains the recovery. If the recov­ proper domestic adjustment measures are taken, then ery continues, there is even basis for hope that existing the developing countries should enjoy a 5% to 6% real restrictionist measures could be removed, as was dis­ growth in their export trade. If commodity prices rise cussed at the Williamsburg Summit. with the recovery, they would then be in a more com­ Q. Is liberalized trade sufficient to transfer the recov­ fortable position to service their debt obligations and, ery to the Third World? at the same time, have some foreign currency to pay for increased imports. A. No, trade is vital but it is not enough. Net capital flows to developing countries must increase by at least Q. What are the dangers of this transmission not tak­ 6% both in the form of private capital and, of course, ing place? official development assistance. That is why we are A. The transmission mechanism will falter if, for in­ very concerned with the seventh replenishment of IDA; stance, trade barriers imposed against products from concessional assistance is so crucial to growth of the developing countries are raised. Free market access will poorest countries. not only increase developing countries' exports but it will put them in a position to import more from Q. As far as protectionism is concerned, what should industrialized nations. This two-way flow of goods and developing countries be doing to improve the chances of services will fuel worldwide economic growth-but let the recovery reaching them? .t • me stress again that this can only happen if protection­ A. On protectionism in the developing countries, the ist pressures are resisted and if the growth rate in Bank's advice is to apply as open a trading policy as THE BANK'S WORLD/NOVEMBER 1983 3 possible. They are themselves in the best position to benefit from the expansion in world trade as it occurs. Q. What kind of trade policies are developing countries pursuing? A. These countries pursue a wide variety of trade poli­ cies-ranging from integration into the international economy to attempted isolation from it through protec­ tion. Outward-oriented strategies, which imply integra­ tion, generally mean maintaining realistic exchange rates, providing similar incentives for domestic and export production and tolerating a fair degree of com­ petition from imports. In contrast, inward-oriented strategies imply broad protection against imports that extends well beyond infant industries; incentives that favor import substitution and discourage exports; vary­ ing degrees of import protection and more emphasis on administered allocative mechanisms rather than on rel­ ative prices. Q. Is the Bank's advice to adopt an open trade strategy based on experience? A. During the past two decades, an increasing number of developing countries, including those known as the Photo by Yose! Hadar "newly industrializing countries," have shifted to out­ ward-looking development strategies, cutting down trade barriers. These countries have generally done well and raising these questions with respect to developing in terms of increased output, income and employment, countries' participation in the GATT. and have been able to adjust more rapidly to external events. In recent years, balance of payments pressures Q. In order to encourage exports, some developing and continuing structural problems have been more countries offer export subsidies. What is the Bank's severe in countries with inward-oriented trade regimes, advice on that score? and the Bank has advised moving toward a more out­ A. On export subsidies, we believe that if incentives ward-oriented stance. are necessary-both in the form of export subsidies and import duties-they should be uniform. Selective Q. The forum for promoting multilateral trade is the subsidies which promote some exports over others do "General Agreement on Tariffs and Trade" (GATT). not work. Uniform subsidies can have the effect of a What is the relationship of developing countries to this partial devaluation, thus making exports more compet­ institution? itive. A. Up to now, developing countries have been asking the GATT for exceptions to multilateral arrangements Q. Do you believe that the recovery will make it possi­ on a case-by-case basis. Current thinking in the Bank is ble for Third World countries to resume their march that these countries may benefit more from having a . toward development? stronger stake in multilateralism than they previously A. If the developing countries manage to apply appro­ advocated. In our opinion, developing countries may priate domestic policies and to increase their imports, want to reconsider whether they should not be pushing which would put them in a position to develop their for true multilateralism rather than asking for preferen­ economies and if the recovery in the industrial world tial treatment. On balance, we believe that the kind of gains momentum, development can go forward again. ad hoc approach that has been applied fosters bilateral­ But it will be an uphill struggle. Everything is related­ ism and may hurt rather than help developing coun­ trade, debt, growth, and the recovery. Let's say I'm tries in the long run. We are working on this subject cautiously optimistic. III 4 THE BANK'S WORLD/NOVEMBER 1983 Training Agricultural Managers he Mananga Experience by Pushpa Nand Schwartz he approach is pragmatic but shadow of the Mananga Mountain programs, cooperatives, and gov­ also philosophical. The non­ astride the border with Mozambi­ ernment agencies in agriculture and profit Mananga Agricultural Man­ que, Mananga has "graduated" marketing. agement Centre in Mhlume, Swazi­ more than 1,000 managers from The managers who come to Ma­ land, is attacking the problem of about 40 countries since offering its nanga are not novices. Although managing agricultural development first course in April 1973. From the there are no academic requirements head-on with an intense curriculum start, Mananga's concept was to de­ for admittance, those who attend aimed at resolving day-to-day prob­ velop and improve the ability of must have several years of practical lems which farm and agro-business managers in tropical and sub­ experience. The curriculum builds managers face. It trains managers tropical countries to plan, organize on the skills and knowledge they and government officials to im­ and control agricultural schemes so already possess. It improves their prove their decision-making and to that they realize the financial and confidence and makes them willing try new approaches. economic results of their actions. to try new ways to deal with their Situated on an attractive campus The Centre has served the needs of responsibilities. 1,000 feet above sea level in the managers of rural development Organizations and governments Mananga students pause by a fish pond. Photo by Neill McKee .t. nominate the Mananga partici­ havior. Participants also select par­ There is no formal exam at the pants, who include managers from ticular areas of interest for in-depth end, but each person has an several World Bank-assisted proj­ study from among 20 subjects, opportunity to review the experi­ t· ects in East and West Africa. Insti­ such as work performance and mo­ ence with a staff member and each tutions which have sent staff for tivation, budgetary control, farm employer is sent a progress report. training include Department of Co­ planning, credit for smallholder de­ The other courses Mananga of­ operatives (Botswana), Agriculture velopment, understanding com­ fers include a six-week session for Finance Corporation (Kenya), Co­ pany annual reports, investment middle and senior staff of lending coa Marketing Board (Ghana), appraisal, and creative thinking. agencies on "Credit for Develop­ Ministries of Agriculture and Natu­ Management study groups are ment"; a five-week course called ral Resources from several formed among the partipants to ex­ "Senior Management in Agricul­ Nigerian states, and Ministry of plore concepts or themes. This is tural Development"; and a flexible Livestock Development (Tanzania). done through group discussions, length curriculum-from a few The teaching approach includes exercises, written papers, private days to a few weeks-on some formal lectures, many discus­ study, and visits to agricultural ··Individual Management Develop­ sions, reading assignments and projects. Tutorials-one-on-one be­ ment Programme." It is tailored for writing of papers, and the use of tween a faculty member and partic­ the individual manager and devel­ videotapes to help develop inter­ ipant-supplement the manage­ oped in consultation with the Di­ personal relationships. The stu­ ment study groups. They enable rector of Studies. Another course, dents play business games which along the same lines, "The Devel­ mirror the managers' real world; opment of Management Trainers," they concentrate on real-life case is available by special arrangement. studies. On any given day, groups of eight to 10 participants are en­ Sharing Ideas, Experiences gaged in give-and-take on why a The Mananga atmosphere is in­ certain proposition will or will not formal and relaxed. Emphasis is on work. The students play sharing ideas and experiences. Par­ ticipants are encouraged to select Road to Mananga business games their own projects and set their On the road to Mananga, a visi­ which mirror the own objectives. The faculty pro­ tor can see several commercial vide guidance and offer suggestions projects of the Commonwealth De­ managers' real in an environment where stereo­ velopment Corporation (CDC), a world. types are challenged, ways to im­ British statutory body which estab­ prove communications demon­ lished the school in 1972 and pro­ strated, and awareness as well as vides financial support to supple­ capacity to increase effectiveness ment the fees paid. The visitor to strengthened. the Centre is likely to see tractors, ··Y ou cannot design a course that harvesters, and irrigation spraying will work for each participant in of sugar cane fields on both sides his or her individual setting in sev­ of the road. The CDC projects in­ participants to review their prog­ eral different countries," explains clude growing of fruit tree crops, ress and focus on specific areas of D. C. Marshall, Mananga's Direc­ sugar cane under irrigation, a cattle need. tor of Studies. ··The resources, ranch, and a smallholder settlement There are two major exercises in crops, methods, markets, organiza­ scheme with sugar, maize, cotton the final two weeks of the course; tion and climate vary enormously and vegetable crops. These and a one involves agricultural develop­ from country to country and even recent Swazi sugar project are an ment strategies, the other participa­ within countries. What we try to integral part of the Mananga expe­ tion in a farm business game called do is to help these managers exam­ rience. "Devpro." Participants use a com­ ine their particular situation thor­ The core of Mananga's curricu­ puter at Mananga to simulate the oughly. They take a good look at lum is a 'three-month residence most gains they can get from their the various alternatives, techniques course qalled "Planning and Con­ investments in funds, people and and methods, and then develop a trol in Agriculture Management." inputs in a hypothetical agro­ strategy or scheme to effect change It covers study of organizations, ag­ industrial enterprise, cattle ranch or that will maximize their own and ricultural economics, finance and farm. Each participant in the exer­ their organization's desired objec­ accounting, and organizational be­ cise works at his or her own pace. tives." II 6 THE BANK 'S WORLD/NOVEMBER 1983 Ski Patroller Ready to Go Curt Carnemar T inKS Snow ' by Thierry Sagnier urt Carnemark is probably one C of those people who enjoys winter, who looks forward to freez­ ing mornings and snow-laden clouds, which perhaps is normal for a Swedish national who started skiing at 4 and, as a child, had to ski to school. He freely admits to his addic­ tion. "Oh, yes, when conditions al­ low, I try and ski every weekend, mostly in West Virginia. I generally take my vacation in the winter. I've also skied in Korea, Japan, and in many European countries." He races, too. Alpine slalom, where the turns are so tight they occasionally come at a right angle, and giant slalom, where it may be more relaxed, if faster. He wins. Came in second in both events last year at the West Vir­ ginia Governor's Cup. The trophies are on his wall, behind his desk. Mr. Carnemark is Chief of Transportation Division I, East Asia and Pacific Projects Depart­ ment. With the Bank 18 years, he's also been a Canaan Valley, West Virginia, National Ski Patroller for five years. Mr. Carnemark gets in­ volved with things like mountain­ eering and rescue seminars in Vail, Colorado. "The Ski Patrol is a serious out­ fit," he says. "There are over Curt Carne mark Photo by Yose! Hadar THE BANK'S WORLD/NOVEMBER 1983 7 20,000 volunteers, and basically we does this almost every weekend we rescued a skier who broke his provide first aid to prevent further during the skiing season which, this pelvis in three places trying to per­ injury. That is to say that once we year, weather permitting, opens form an aerial trick." rescue a hurt skier, we make sure November 27. • Take lessons. "Teaching tech­ his injuries do not worsen, using niques have improved tremen­ proper splinting and immobiliza­ Safe Skiing Tips dously in the past few years. Les­ tion." Here are his tips for safe skiing: sons help at all levels." It takes a lot of training to be­ • Wear proper clothing. "A net come a Ski Patroller. One must shirt provides an air cushion, and • Beware of frostbite. It can be colder than you think with the have taken first aid or paramedic on top of this wear a wool shirt. wind chill factor. "Light-complexi­ courses, and be tested for skiing Wool protects you from the cold oned people will have gray areas on ability, stability, and strength. The even if it gets wet." Also wear ap­ the skin. People with darker com­ latter is particularly necessary when propriate pants, gloves, and a down you're guiding a toboggan with an plexions will become pink or red­ jacket. Never wear jeans; when wet, dish." injured skiier down an icy slope. they provide no protection. Have Prior to the skiing season, Ski Pa­ sunglasses with dark areas at both • Don't stand on the slope, and trols also learn how to diagnose in­ the top and bottom, and use sun when skiing, don't criss-cross too juries, and have to attend medical screen, especially at high altitudes. much. Try to ski close to the fall refresher courses. • Eat properly. "Drink a lot of line. liquids. You'll need the nourish­ • Don't ski when tired. Most ac­ Chair Lift Evacuations ment in the cold, but don't drink cidents occur in the afternoon and "We also practice chair lift evac­ alcohol." Mr. Carnemark reports involve knees, shoulders and uations every year, as well as that a large number of accidents wrists. As a rule, women and chil­ cardiopulmonary resuscitation are due to alcohol or drugs. dren are injured more than men. (CPR), and, of course, we patrol • Check your equipment prior to • If you are injured, get someone the slopes, using shortwave radios using it, particularly the bindings. to call the Ski Patrol and don't to communicate. • Warm up and stretch your move. If possible, press ice on the "Patrols are the first and last on limbs before getting on the slopes. wound to reduce swelling and pain; any slope. We open them at 8: 15 • Ski according to your abilities. it will help decrease the time it a.m., decide which slopes are ski­ ""A lot of injuries happen when ski­ takes to heal. able and which are to be roped off, ers try dangerous stunts. They en­ ""If you ski correctly," concludes and we close them at night. In be­ danger not only themselves, but Mr. Carnemark, ""skiing itself tween, we ski." Mr. Carne mark others using the slopes. Last year, shouldn't be much of an effort." III Attit d Survey December 1 The second staff Attitude Survey will be held next H Ground floor lobby month, and December 1 has been designated Attitude I Ground floor lobby Survey Day in Bank/IFC Headquarters. You can par­ K Inside entrance doors at levels 8, 9 ticipate by completing your questionnaire and deposit­ and 10 ing it in one of the following collection boxes before 6 L Inside entrance doors at levels 3 and 4 p.m. on that day (the collection boxes will also be M Ground floor lobby available December 2): N Ground floor lobby P Inside entrance doors at levels 4 and 11 Location of Collection Boxes Q Inside entrance door at level 3 Building R Entrance lobby to floors at levels 2 A Ground floor lobby and 10 B Use boxes in buildings A, C, D, E or F If you will be away on these dates, contact Holly C Ground floor lobby Helton (Ext. 61390) or Susan Capistrano (Ext. 69095) D Ground floor lobby to make arrangements for completing the Survey be­ E Ground floor lobby fore you leave or upon your return. F Ground floor lobby More than 85% of staff completed questionnaires in G Entrance lobby to floors at levels the first Survey; the goal this year is to improve on basement and 10 that number. II 8 THE BANK'S WORLD/NOVEMBER 1983 Mahaweli Ganga Is Transforming Sri Lanka when the island (once called Cey­ lon) was known as Lanka-San­ skrit for the Resplendent Land. A Dream Coming True When Washington, D.C., was still a largely uninhabited steaming swamp, a Sri Lankan warrior by Thomas Blinkhorn king-Abhaya Gamini, one of the great builders of history-was con­ ne of the most awesome de­ ..It is really a stupendous under­ O velopment projects of South Asia is slowly transforming Sri taking," according to N.G.P. Pandi­ tharatna, chairman of the Mahaweli structing water supply systems, un­ derground sewerage facilities and remarkable buildings. The ruins Lanka's economy. Authority. "And it is entirely fit­ can still be seen; it is not unusual It is Mahaweli Ganga-a dream ting because river basin develop­ for workers on the Mahaweli of decades to harness the power ment, which compels man to tame Ganga project to uncover some and potential of one of the nation's the elemental force of rivers, has long lost treasure. largest river systems. The dream is been our national preoccupation The inspiration for the project becoming reality today in a vast for thousands of years." sprung, as is usual for most proj­ cacophony of construction, from Signs of that heritage are every­ ects of this type, from a problem. which dams, canals, new towns, where. Four hours away from The problem had to do with Sri roads, and agricultural activities Colombo, the capital, the ruined Lanka's ecological condition and are emerging in east central Sri monuments of the Sinhala Kings its economy. Lanka. remain-built 2,500 years ago Sri Lanka is a tropical island with distinctly divided wet and dry Construction of the Victoria hydro station. Photo by Yose! Hadar zones. The wet zone encompasses the southwest quadrant of the is­ land, or about 30% of the land area. It supports more than three­ quarters of the national population and accounts for about 82% of the cultivated land. In other words, there exists a large concentration of economic activity in the wet zone, leaving the remaining 70%-the dry zone-relatively undeveloped. Developing the Dry Zone The other dimension of the prob­ lem made it more imperative to try to develop the dry zone. Tradition­ ally, the backbone of the economy has been estate agriculture-export crops such as tea, rubber and coco­ nuts. Food crop production is left largely to small farmers who have not satisfied the needs of a growing population. The result: Growing imports of basic foods, at consider­ able and increasing cost. What to do? The obvious solution was to de­ velop the Mahaweli Ganga (Big Sandy river), the island's largest and almost unexploited water re­ source which cuts through the eas­ .,t . tern portion of the dry zone. The Government saw this as the most THE BANK'S WORLD/NOVEMBER 1983 9 financed a study; as a result, the Government decided to initiate work on the accelerated program. Total expenditures are now esti­ mated at about $1.6 billion over the 1981-85 period, or about 45% of projected resources for the entire public investment program. Other financing agencies from the European Economic Commu­ nity, Netherlands, United King­ dom, United States, Germany, Japan, as well as the Bank, are now assisting. In 1981 the Executive Di­ rectors approved a credit of $90 million for the third project. This one comprises about one-half of the downstream development area to be served by the Victoria Dam, a principal component in the Gov­ ernment's accelerated program. Problems with Elephants In any effort as comprehensive and complicated as this, there are bound to be problems. Resettle­ ment has created difficulties in Leveling the foundation of a tunnel at the Kotmale project site using sophisticated laser technology . some areas, although these have Photo by Vose! Hadar been largely overcome in the sec­ tions affected at the start of the program. There have been cost logical means of providing irriga­ same amount for the first develop­ overruns and technical problems of tion water for arable lands in the ment project. various kinds. There have also dry zone, generating more electric The main objectives were to pro­ been problems with elephants, and power to meet increasing demand vide supplemental irrigation water large herds have had to be moved and, at the same time, creating new to about 126,000 acres of existing from certain construction areas. employment opportunities. That irrigated land, full irrigation of Nonetheless, the Government is obvious conclusion emerged from a about 105,000 acres of new land determined to press ahead with study of the irrigation and power and a 40-megawatt hydropower Mahaweli Ganga. potential of all the nation's river generation station. "It is the number one priority for systems undertaken by Govern­ Project implementation was de­ layed because of a severe flood and us," says Mr. Panditharatna. By ment in the 1950s. The Bank entered the picture in difficult geological conditions. providing employment opportuni­ the 1960s and decided that of five However, the agricultural and ties for thousands of settlers (most major rivers studied, the Mahaweli power benefits of the project with lower incomes), developing Ganga was most ready for develop­ turned out to be much higher than new hydropower potential, by help­ ment and recommended a detailed expected at appraisal, which was ing to reduce rice imports and in­ engineering study. In 1970-after undertaken before the 1973 world­ crease exports (coffee, cocoa, pep­ the United Nations Development wide oil crisis. . per, cashews), the development Programme and the Food and Ag­ Since then much has happened. project holds the hope for the fu­ riculture Organization had helped Late in 1977 the Government real­ ture of Sri Lanka. II to develop a water/power master ized that the program should be ac­ (Editor's Note: The Mahaweli plan for Mahaweli Ganga-the celerated in certain key aspects in Ganga project is the subject of a Bank became actively involved. In order to produce faster impact on film under production with the as­ January of that year the Executive serious and growing problems of sistance ofthe Information and Directors approved a credit of unemployment, food supply and Public Affairs Department. The film $14.5 million and a loan of the power shortages. The Netherlands should be completed in early 1984.) 1'0 THE BANK'S WORLD/NOVEMBER 1983 World Bank, Commercial Banks: 'Partners in Development' A W Clausen "The World' Bank and the Commercial Banks: tured if it is not fueled with adequate resources. There Partners in Development" was the subject of will therefore be, as there always has been. a need for a Bank President A. W. Clausen's address in October to sustained flow of external capital. the Institut d'Etudes Bancaires et Financieres in Paris. "Private lending to the developing countries rose at Here are excerpts: an average of 14% per year in real terms between 1970 "'For the international community as a whole. there and 1980, and provided about half of medium- and are three linked areas in which positive action is now long-term flows during that period. Even though that vital: trade, debt management, and capital flows. rate of growth declined in 1981 and 1982 the share of 1 hO pen and expanding trade bas been crucial to the medium- and long-term debt owed to the private rapid growth that many (if not most) developing coun­ lenders by the developing countries had nonetheless tries have achieved over the last three decades. And reached an estimated two-thirds of the total debt out­ the best way for developing countries to revive their standing by the end of 1982. economies now is to expand their exports. It is also the "The problems of some major borrowers have now only way for indebted countries to finally overcome shaken confidence in international commercial1ending. their financial difficulties. They must strengthen their Some slowdown was to be expected, but the fall in the abilities to earn foreign exchange. rate of increase in J982 was dramatic. Net commercial "Unfortunately, very high unemployment in the bank lending to all developing countries dropped from industrial countries has strengthened protectionist pres­ $42 billion in 1981 to $24 billion in 1982. For Latin sures. It is true that most of the increases in trade America. the drop was particularly dramatic: from $31 restrictions in recent years have been principally billion to $11.5 billion, with only $400 million loaned among the industrial countries themselves-notably in in the second half of 1982. automobiles and steel. But import restrictions on tex­ "The cumulative data for 1983 show that the volume tiles and agricultural produc.ts hurt the developing of new lending to the developing countries continues to countries exports too. During the 1960s and 19705. fall dramatically. It is understandable that the banks some significant progress was made in a series of should be worried about their debtors' liquidity being rounds of negotiations to liberalize world trade. But the sufficient to cover payments on all their loans. Servic­ recession put the process in reverse. ing the more than $500 billion of medium- and long­ "We applaud the resolve of the major trading na­ term debt is, after all, a sizable problem. But if the tions, articulated by the heads of state at the Williams­ banking system as a whole will continue prudently to burg summit, to roll back protectionism. We acknowl­ provide new finance to those countries seriously mak­ edge that the process can be temporarily painful. But ing the effort to adjust their economies and to restruc­ the long-term damage to a protected economy is far ture them, the problem should be greatly eased. If. on too high a price to pay for the short-term relief that the other hand, individual banks lose confidence and may occur. .. precipitate a general withdrawal, the consequences .t . '"The momentum of development will not be recap- could be disastrous." continued next page THE BANK'S WORLD/NOVEMBER 1983 11 and grace periods offered by commercial lenders, and Sustain, Not Curb, Lending so ensure a better match between the amortization of '"It is therefore to be hoped that the concerted action the loan the project~ and the borrower's capacity to ~ . taken by the International Monetary Fund and the repay. l Bank for International Settlements, and by certain "We now have the capacity to participate in com­ industrial country governments, will help the major mercial bank syndications, in their documentation, on banks decide to sustain, not curb, their lending. their terms. where the proceeds are to be used for high "Given trade prospects, commercial lending trends, priority development projects which have been ap­ and the increasing needs of the developing countries, it praised by the Bank. We believe these new techniques is clear that official capital flows are of greater impor­ will prove highly attracti ve to both borrower and co­ tance than ever. lender. "Official Development Assistance (ODA), the con­ "Official French sources of development finance. in cessional element of official capital flows, is desperately particular the Caisse Centrale and the FAC, are fre­ needed by the low-income countries-countries which quent co-financiers of IBRD and IDA projects. In the do not have access to, and cannot afford the terms of. agricultural and rural development sector alone, the significant commercial borrowing. It is therefore dis­ Caisse and the FA between them were involved in turbing that ODA flows have remained in real terms at nine projects approved by our Board of Executive Di­ about the same level in 1982 as in 1980. And for more rectors-in eight countries-during FY83. The Euro­ than a decade, only 30% of total bilateral ODA has pean Investment Bank and the European Development been aUocated to the low-income countries. The case Fund, to which France is an important contributor, are for improving both the quantity, and the quality, of also co-financiers in our projects." ODA cannot be contested. "'It is encouraging to note that France's ODA is on a An Encouragement to Join Us steadily rising trend. "'France's commercial banks, however, have been "France has also been and continues to be an impor­ less active. In the eight fiscal years C76 through '83), tant contributor to IDA's funds. French commercial bank co-financing with us has ac­ "France has also expressed itself in agreement with counted for less than 4% of the total commercial bank our view that the IBRD should expand its activities. At co-financing arranged during that period. We hope that a time when the developing countries are facing diffi­ the new instruments we have developed will be an culties in expanding exports rapidly to meet debt-ser­ encouragement to you to join us in greater numbers vicing requirements, when official development assis­ and volume. tance is stagnating, where there are uncertainties over "One sector in which we are anxious to join hands the future levels of commercial capital flows, one thing with official and private sources of finance is the en­ becomes clear: An institution in which the capital ergy sector. which, together with agriculture and rural markets daily demonstrate their confidence is an insti­ development. accounts for approximately one-balf of tution which could and should intermediate much total lBRD and IDA lending. Energy is, and will re­ larger amounts. main, one of our largest sectors of operations because "Our economic policy dialogue with our borrowing we recognize that economic growth and an increasing members. based on painstaking economic analysis, is a energy supply are interdependent objectives, each sup­ central feature of our operations. We feel a strong ob1i­ porting the other. At the Bank. we have launched a gation to urge the reform of broad economic policies program to help our oil-importing developing member and the taking of policy actions which are often painful countries to overcome resource and managerial con­ and unpopular. if that is what a country needs in order straints in this vital sector. Our contribution can be to recover and sustain the momentum of develop­ only a small one in relation to estimated investment ment:' needs. Nonetheless, we want to play our part, and an expanding part. in the collaborative effort that wi!} be IBRD's Role as a Catalyst needed to bridge the resource gap for energy invest­ "We have also moved to strengthen IBRD's role as a' ment. catalyst for more commercial investment by introduc­ "'At times when the dialogue between the industrial ing innovative co-financing instruments earlier and the developing world on the future of the global this year. We have recently launched, on a trial basis, economy has seemed to falter. France has taken timely what we call our new 'B' loan program. It has two initiatives and provided useful fora in which to move principal objectives: First, to make additional funds the discussion forward again. available to countries for high priority investments. ""France's support for the institutions of The World and to provide access to funds not otherwise available; Bank family gives equal demonstration of its commit­ and second. to encourage a lengthening of maturities ment, and we profoundly appreciate it." • 12 THE BANKS WORLD/NOVEMBER 1983 Education and Development Robert Picciotto (Editor's /lote: The following are excerpts from remarks . The belief that a poor country can employ relatively by Robert Picciollo; Director, Projects Deparlrnent, few skilled people because it is predominantly agricul­ EAfENA. made at the EA1ENA Education and Man­ tural and a backward agriculture does not require power Development Division retreat recently in Elk­ trained staff belongs to a bygone era. The stock of idle ridge, Alaryland.) fertile land is largely exhausted and the bulk of growth in agriculture now depends on higher productivity, i.e., A bout 20 years ago! education was hardly viewed as an activity fit for the Bank to invest in~ the first education credit was approved in FY63. on dissemination and application of new and improved technologies. This cannot take place effectively without techrucally qualified staff and a schooled rural popula­ Since then, considerable strides have been made, al­ tion. though education is not always secureJy anchored to To be sure. for nations with large untapped resources country strategy formulation and economic dialogue of land or mineral resources. growth can proceed. at remains somewhat of a sideline activity in parts of the. least for a while, without major increases in domestic Bank~ and has been a recent victim of budget cuts in labor productivity. However, these are rare and transi­ several Bank member countries. What factors underlie tory situations. Even in such situations, human devel­ this state of affairs? opment must be encouraged to facilitate transition to There are short-term reasons for the current disaffec­ self.:sufficiency when natural resources have become tion of policy-makers regarding education. The global exhausted. This is why Saudi Arabia has given the top economic situation has been inimical to a major focus I priority to human resources programs in its develop­ on most social investments because of extraordinary ment effort. resource constraints apd the pull of comp~ting sectors. In short, developing societies cannot subsist let alone But there are deeper causes as well. flourish without imparting to. their' farmers, workers The traditional view of development is that growth and managers basic skills and knowledge. Indeed. should be secured by investing in productive assets cross-country comparisons carried out for World Devel­ first and then, from the returns, allocating resources to opment Report I V demonstrate that increased literacy education and other social services. Whether this was contributes both to improved productivity and to the pattern of the Industrial Revolution in Europe is a higher life expectancy. subject of some debate. In any event, it is clear that developing countries today face quite a different chal­ Unemployed Intellectuals lenge in terms of international trade, population There is another argument against education invest­ growth, and the exploding expectations of their peo­ ment. It points to the common outcome of educational ples. programs in developing countries: a disaffected class of Furthermore. there is growing evidence that bulky unemployed intellectuals causing social tension and investment projects give relatively low returns and that political strife. But given the growing mobility of skills it is the small ""add-in" investments geared to increas­ across international borders, such problems arise ing the productivity of existing capital that give the mostly where the education system turns out graduates highest returns. In particular, training and other mea­ who do not possess the skills and knowledge useful in sures to mobilize human ·resources· in concert with a modernizing economy. From this standpoint~ it is other production factors have proved especially suc­ not appropriate to characterize all education expendi­ cessful. tures as consumption. Rather the concept of capital needs to be made comprehensive and incorporate hu­ Concept of Labor as Manual Work man as well as· material capital. In the· modern age, the concept of labor as manual The often forgotten corollary of the human capital. work, requiring mostly brute force. has become obso­ thesis is that investment in education should not be lete. This has long been obvious in industry and in the spared the acid tests applied to other capital invest­ agriculture of developed countries. It is equally true of ments_ The reluctance of educators to face such scru­ agrJculture in developing countries. tiny is at the root of the sector's remaining credibility THE BANK '~ WORLD/NOVEMBER 1983 13 problems. contribute to structural adjustment. Beyond the natural defensive reaction of profession­ This implies reliable cost control and budget sys­ als in any sector, educators like to argue that the re­ tems. It requires systematic tracking of such indices as sults of educational endeavors cannot be measured, drop-out rates, scholastic aptitudes of graduates, pupil that education aims at the whole man. that it helps to to teacher ratios, administrator to teacher ratios, cost pass the torch of civilization from generation to genera­ per enrolled pupil, cost per graduate. etc. It necessitates tion. etc. From this perspective, the economic function manpower studies and education planning systems to of schooling is minor. jf nol irrelevant. help ensure that supply of skills is not mismatched Of course, this is not a tenable position for develop­ with demand. It mandates that teachers should no ment educators to take since they are mandated to longer be drawn from the least capable groups of grad­ focus on the specific role of education in increasing uates and. once hired, that they should be rewarded in incomes and overcoming poverty. Much of the rhetoric relation to their performance rather than to their docil­ surrounding the unquantifiable nature of educational ity to official fads or their pliancy to political pressures. output is a screen for mediocrity and waste. For educa­ Inefficiency in student flows, poor use of scarce tion to be viewed as a rightful claimant for scarce teachers and facilities. ill-adapted curricula. excessive resources, educators cannot escape the search for effi­ focus on the higber education level, inappropriate class ciency which good economic management demands. size, limited cost recovery, inadequate involvement of the pri vate and voluntary sector contribute to excessive Dissemination, Retention of Knowledge educational expenditures. There are well established (lhough by no means per­ Such a lamentable state of affairs is common in fect) methods LO track the dissemination and retention developed and developing countries alike and implies of knowledge and, hence, to monitor the effectiveness that the scope for educational policy refonn is vast. of education and training programs in relative, if not For the needed reforms to be implemented, the abhor­ absolute, terms. Regarding investment selection, the rence which many educators harbor toward producti v­ emphasis needs to be shifted to the existing labor force ity concepts must be rooted out. In blunt terms, educa­ rather than to Dew entrants since this is where the tion officials must understand that more money is not quickest and highest returns are obtained. Generally, the answer to all educational problems. especially there is scope for application of traditional economic where current funds are not being used effectively. tools in the design and selection of education and training programs. Indeed, the rate of return Responsive and Complementary Programs methodology, with all its limitations, may well be as In parallel with cost reduction and quality enhance­ meaningful for education projects as for power or rural ment reforms. education and training programs must development projects. be made responsive and complementary to adjust­ The costs of education are relatively easy to assess, ment efforts in the directly productive sectors. There is and the differential between wages or salaries earned by growing recognition of the need to provide systematic graduates and non-graduates can be used as proxy for training to development managers and administrators. calculating benefits streams. To be sure, wage varia­ Encouraging evidence in agriculture extension (e.g., tions do not always reflect productivity differentials, Training and Visit [T&V] systems) suggests that major especially where public sector employees are con­ skills transfer programs need not be expensive or slow cerned. On the other hand, distortions in labor markets even where general education programs are weak. Im­ are often fewer than in agriculture and energy markets. pressive examples of cost-effective, targeted vocational Of course, rate of return analysis is only one tool in training programs closely linked to employers' needs, the kit of the education economist; it should be used point in the same direction. selectively to complement systematic reviews of educa­ Bank-financed projects should pioneer new ap­ tional program effectiveness. proaches, train new leaders, remove critical constraints and ensure effective application of scarce resources. Better Use of Education But, in parallel, they should be designed with due re­ There is substantial evidence that declining returns gard for the enormous weight and momentum of exist­ to public investment explain a good part of global debt ing educational policies and programs and should di­ servicing difficulties. Since education accounts for a rectly contribute to their reorientation. This is LikeJy to su bstantial proportion of existing budgets (often l5% to involve more joint IBRD-IMF reviews of recurrent 25% of government expenditures), better use of educa­ budgets for education. an increasingly problem-ori­ tion and training resources must take precedence over ented approach to education sector work, a significant increases in resources allocation to the sector. There is shift of Bank educational operations toward sector great potential for such savings-and it is principally lending and a growing emphasis on project-related in the realization of this potential that education can training in all sectors. II 14 THE BANK'S WORLD/NOVEMBER 1983 A Secretary's Success by M, Clara "Nancy" Centina ust what is this thing called ties. SARs, PRs, PCRs, PBs, BTOs, J "success," and how can a Proj­ ect Secretary succeed in the Bank? TORs. These are all important ac­ ronyms in Projects, requiring "pri­ We tend to equate success with ority billing." superficial and transient things: In Projects, the Staff Appraisal money, power, fame. But success, Reports (SARs), being the bread in its deeper sense, means some­ and butter of the Bank, always thing which is intangible, yet last­ have priority because of the lengthy ing and penetrating. It flows from and complex process the reports within, a transcending power that must go through before the Board eventually bounces back to its presentation. In cases where there source. It is the giving of one's self, are no appraisal reports (as for a «; 1:) l1l without reservation, to a certain supplemental or a structural adjust­ I need. 5i ment loan), the President's Reports o >­ It doesn't really matter what take precedence over anything else. :s o (5 your grade is. The important thing "What if I have three priority re­ c­ o.. is for you to have a sense of re­ ports at one time?" asked one Proj­ Nancy Centina with Robert Armour sponsibility, accomplishment, vic­ ect Secretary recently. In this case, tory. You must feel happy and suc­ the Project Secretary should go to cessful. her Administrative Secretary, dis­ I have, over the years, developed cuss the workload with her, and the retary becomes an integral part of a "success kit" for Project Secre­ Administrative Secretary should, in the project team, quick to grasp taries (other secretaries can adapt it turn, initiate a practical solution. and convey ideas. as well), based on my experience By being assertive, the Project Sec­ A resourceful Project Secretary with Projects. I hope it will serve retary avoids unnecessary pressures takes advantages of training oppor­ as a guide to new Project Secre­ in the office. tunities offered by the Bank. A sec­ taries, and as a refresher to the not­ A Project Secretary must also be retary involved with procurement so-new ones. able to foresee her supervisor's matters, for example, should attend needs. She knows, for example, a "Procurement Seminar for Sup­ Feeling Good About Herself that before going on mission, he or port Staff," whereas one who en­ It's important to develop a posi­ she needs an approved Travel Re­ joys writing and editing should par­ tive attitude. A secretary who quest, Terms of Reference duly ticipate in the "Letters and smiles and laughs (even at her mis­ cleared by the relevant Programs Memos" course and the "Editing takes) exudes self-confidence. A Division, a medical travel kit, and Workshop for Secretaries." Train­ secretary with a positive attitude miscellaneous working papers to be ing can also help career advance­ feels good about herself, her work discussed in the field. She should, ment. and her environment. She can then therefore, initiate actions which Finally, an efficient Project Sec­ tackle the tight deadlines and the help process these travel require­ retary does not hesitate to go out of sometimes overwhelming demands ments. her way to reach out to others. She of her job. She feels invincible. realizes that the Bank's work in­ Part of the Team A successful Project Secretary volves teamwork, hence she should must know how to establish priori- A wise Project Secretary reads all have the ability to work effectively materials that come to her desk. in a team environment. She should Reading enables her to know the have the willingness to help and Nancy Centina is on the staff of latest developments in the coun­ the eagerness to take on more res­ LCP, Agriculture Division B, and tries for which she is a Project Sec­ ponsibilities-for the more she has been involved with project work retary. It enables her to know gives, the more she will receive in for nearly 13 years. Before joining what's going on in her Department return. She then feels she has con­ the Bank in 1971, she was with the and in other areas of the Bank in quered herself; she is capable, prod­ ..t ~ Asian Development Bank in Man­ particular, and in the whole world uctive, involved, and thus success­ ila. in general. A well-read Project Sec­ ful. 1'1 THE BANK'S WORLD/NOVEMBER 1983 15 IFC Staff Member Practices 'luong' to Reveal a Person's Past, Future More han Telli 9 Fortunes by Alan Drattell t happened several years ago. Quyen Tran, an Operations Offi­ cer with IFC's Planning, Budgeting and Analysis Department, had told a man that it would be dangerous for him to drive his family to the beach any time during the next three months. Mr. Tran, who practices ""tuong," the science of Vietnamese physiog­ nomy which can reveal a person's past and future, had held one of his confidential sessions with the man. ""The man was planning a trip to the beach on the coming weekend," Quyen Tran telling a friend about the future. Photo by Yosel Hadar Mr. Tran relates, ""and he did not want to change the plan but also wanted to challenge the predic­ tion." Concerned, Mr. Tran went shaping those events about to oc­ run into difficulty or when they to the man's house three times to cur. plan a move either for themselves beg him not to go because he knew ""Tuong is an empirical science or their family. ""The questions that an accident was unavoidable. which has many laws, but the law they ask me," he says, ""cover the ""But he would not listen," Mr. of "changes' (yin/yang), the law of whole range of human concerns." Tran recalls. ""That Saturday, he "balance' and the law of "cause-ef­ He sees people only on Satur­ drove to the beach with his wife fect' in life are the most important days. ""I reserve Sundays for my and three children. A truck came laws at work." family, and during the week I am out of nowhere and hit their car, too busy at work." He suggests that killing all of them, except the Confident and Happy people who seek his advice call man." Mr. Tran learned to be con­ him at home on Friday nights. The seer says that tuong, which cerned with a person's safety and The personality of the person is transmitted from generation to happiness. ""I don't concern myself practicing tuong in reading others' generation in Vietnam and China, with people who only want to physiognomies is extremely impor­ is different from many forms of the know if they will become rich or tant, says Mr. Tran. ""In his regular occult. ""Tuong does not teach one famous," he adds. ""After I finish a normal life, he should maintain simply to tell what is going to hap­ session with a person, his or her equilibrium, his mind always at pen, such as in fortune-telling, but confident and happy look is my in­ peace and uninvolved in the strife it also helps one to know why and valuable reward." Mr. Tran says of the world around him, consider­ in which circumstances something that he does not recei ve a fee for ing solely the helping of others as is going to happen. Once we know his advice. his goal in life. Only then can he the cause of things, we can, of For nearly 20 years, he has used realize all the subtleties of crea­ course, playa more active role in tuong to advise people when they tion." Among other things, Mr. 16 THE BANK'S WORLD/NOVEMBER 1983 Tran practices meditation and tell a person's past and future by voice, handshake, etc. kung-fu, which aids him in main­ noting every aspect of the Tuong helped Mr. Tran survive taining calm in his life. individual, but most information a 10-year separation from his chil­ can be gleaned from one's face. dren. ""My master had told me in 'Deep and Sacred' ""Each person's life is like a 1964 that it would happen but we "A tuong master usually has only panorama," says Mr. Tran. ""The would be reunited in 10 years." In one student in his lifetime. There­ tuong reader makes a thorough ob­ 1974, Mr. Tran left to study in the fore the relationship between the a servation of person's features in United States, and while he was master and his student is customar­ order to sketch this panorama. gone, Saigon fell to the North Viet­ ily very close; it is deep and sacred, Each event in the person's life is namese. It was not until this past thus somewhat comparable to a one part of this great panorama." March that he was reunited with parent-child relationship," Mr. Mr. Tran has taught his chil­ his children and his mother. His Tran says. dren-an l8-year-old son and a 12­ first wife had died many years ago Ngo Hung Dien, who died in year-old daughter-to distinguish in Vietnam; he has since remarried. 1974, was his master. Mr. Dien between a bad person and a good Mr. Tran stressed that ""one met Mr. Tran through a mutual one ""because such ability will help thing I would like to make clear is friend, and shortly after their meet­ them have a safe and happy life." that tuong cannot make things hap­ ing, he asked Mr. Tran to be his He adds that there are a thousand pen; people do. As an example, my student. clues. family was able to be reunited with ""My master told me that I would me here in the United States only meet my student when I am 58 Look, Voice, Handshake thanks to the invaluable help I re­ years old. He told me how I would Mr. Tran says he has never mis­ ceived from Mr. Robert McNa~ recognize this person," Mr. Tran, judged anyone using tuong. He mara, Mr. Moeen Qureshi, Mr. who is 46, adds. He would not notes that you can determine, for Hans Wuttke, Mr. Carl Bell and elaborate. example, a person's honesty at a many other staff in the Bank and Practitioners of tuong are able to first meeting by his or her look, IFC." BID Bank, NGOs:, A Turning Point "I t was a turning point in rela­ tions with the Bank." cient speed-in the last seven years, about 80 NGOs have been from developing countries. The stepped-up participation from That was the way participants involved in over 100 Bank-financed NGOs is giving the Committee from NGOs (Non-Governmental projects-non-project cooperation more diversified approaches. Organizations) from North Amer­ has been dealt with only on an ad • A Steering Committee is being ica, Europe, Japan and developing hoc basis. The formal introduction set up to expand the relationship in countries described the third an­ of non-project cooperation is a big practical ways. Because it will meet nual meeting of The World Bank­ step toward a fuller relationship. more often than the The World NGO Committee in Tunis in late • The NGOs asked to work with Bank-NGO Committee, it will have October. the Bank on development educa­ more opportunities to consider The meeting, cochaired by Sha­ tion in donor countries. Up to joint information and research hid Javed Burki, Director of the now, the subject had been kept on efforts. Through the Steering Com­ International Relations Department the sidelines. The decision to bring mittee, NGOs could also organize (lRD), and Nigel Martin, Executive development education to the fore­ consultations with the Bank on a Secretary of the Canadian Council front of cooperation is important variety of topics. of Voluntary Agencies, resulted in to the Bank. It means that NGOs Describing the work of The several breakthroughs: will include Bank material in their World Bank-NGO Committee, Vit­ education programs to better ex­ torio Masoni, IRD's adviser on • The NGOs agreed to a broad­ plain to the people in donor coun­ NGOs, says: ""The Committee is ening of the Committee's agenda to tries the dire needs for assistance in not another debating society. It is a include policy issues-which the Third World. source of proposals and practical means going beyond cooperation at • The NGO representation in the options. It seeks to be a spring­ the project level. While project co­ Committee has expanded-particu­ board for action, and practical operation is going along at suffi­ larly with an increase of NGOs steps were taken at Tunis." BID THE BANK 'S WORLD/NOVEMBER 1983 17 Arou Sa · l United Way Update tion. But many such centers have ous subsidies. Each of the options experienced monetary problems, indicated that the costs outweighed Although the United Way fund and it was determined that it just the benefits. Furthermore, it is drive in the Bank and IFC offi­ would not be possible to locate a Bank policy that a program benefit cially ended November 18, staff center in so high a rental area as as large a number of staff as possi­ can still send in contributions. Last the center of Washington without ble, which was not the case in this year, contributions were made as securing its survival with continu- instance. II late as January. As of November 4, a total of 1,472 people had contributed nearly $127,000. These figures and Qamar Ahmad and Gwen Kel­ compare with 985 who donated Tennis News ley won the mixed doubles. about $109,000 as of the same date by Gwen Kelley As usual, the matches were a year earlier. played at Bretton Woods Recrea­ The fund drive's goal is partici­ For the past few years, the Bank tion Center. The weather was per­ pation by at least 50% of the has won the Witteveen Tennis fect and, in spite of their defeat, staff. ID Bowl, the trophy awarded to the the Bank's team enjoyed some ex­ winning team in the two-day com­ citing tennis. petition between the Bank, IMF, Congratulations to the Fund, Child Care Decision OAS and IDB. winners of the trophy, and to our A number of staff have been con­ This year, however, the Bank team members: Qamar Ahmad, K. cerned about the availabdity of was defeated by the Fund which Arichandran, Daniel Coyaud, Pam child care facilities close to the fielded a very strong team. The Glass, Tommy Heintschel, Martin Bank. A series of discussions have Bank's only two victories occurred Herman, Gwen Kelley (Team Cap­ taken place on this issue and the when Qamar Ahmad and Mateen tain), Ken Newcombe and Mateen matter has been thoroughly re­ Thobani won the men's doubles Thobani. ID viewed by the Bank's management. Management has decided that it is not possible for the Bank to playa The Newest ED Alternates direct role in this area. This decision, made after a series The two newest members of the Board of Executive Directors are: of options had been weighed, was determined by cost factors. The Bank's involvement in child care facilities would be expensive. The Bank does provide many benefits to staff and it offers an array of incentives to secure first-class staff. There are always suggestions as to how to expand the range of bene­ fits and incentives, but expansion almost always involves substantial budget costs, and limits have to be set. Management considered not only the idea of the establishment of a child care facility on Bank premises and providing individual subsidies to eligible staff members, but it also looked at providing a one time HUGH W. FOSTER FRANCIS MAYER grant to an externally managed (United States) (France) child care center. This latter idea Alternate to James B. Burnham Alternate to Bruno de Maulde appeared to be the lowest cost op­ 18 THE BANK'S WORLD/NOVEMBER 1983 WIVES Book Project: A Success in the Making Boxes are stacked on the tables and floors in two rooms where the Book Project sponsored by the World Bank Volunteer Services (WIVES) is under way. So far, 53 boxes, each containing about 50 books, have been sent to SOS vil­ lages (a private, international, apolitical and inter-denominational network of villages for needy chil­ dren), hospitals and urban youth groups in Cameroon, Kenya, Nigeria, Nepal, Togo and Pakistan. More books are waiting to go to India, South America and other points where people-children, teen-agers, patients in hospitals, re­ cent literates of all ages-want to read but have no books. The idea for the Project arose more than a year ago in Nigeria when Peggy Clausen, wife of the Bank's President, and Babs Knox, wife of the Western Africa Regional Vice President, visited an SOS vil­ lage in Lagos. They found them­ selves among children eager to read but with not a book in sight. Other institutions, schools and training centers were in a similar situation. Packing books for the poor are, left to right, Arnel Bouhaouala, Martha Coutinho, Babs Knox and "Would you like us to send you May Payne. Photo by Michele lannacci books?" they asked. The response called for quick action. A group of eager volunteers from free of charge, and it is hoped other On the return journey, a visit to 11 nations meets twice a week to lines will offer the same service. the Ranfurly Library Service in sort the books and pack them. At Donations and transport of books London, which has collected and the other end, resident missions are tax deductible for taxpayers in sent 10 million second-hand books and staff members have helped the U.S., and the Book Project is to 102 countries over the past 30 make contacts with schools and or­ incorporated for this purpose. years, proved a useful stop. The li­ ganizations and establish categories The Book Project has just moved brary staff offered to share their ex­ of books needed. Bank wives at to the basement of the N building perience with WIVES for a new resident missions are also busy (NB 105). The project needs all project. channeling requests, receiving and types of books-school books, fic­ In Washington, WIVES immedi­ dispatching boxes to various desti­ tion and non-fiction for all ages­ ately approved the Book Project nations in their countries. in English, French and Spanish. which took shape in the fall of Boxes of books accompany be­ Books may be delivered to NB 105 1982. A notice in the WIVES news­ longings of Bank staff transferring on Mondays from 11 a.m. to 2 . j letter and appeals though word of to Resident Missions when the p.m. If you have several boxes and mouth drew an initial flow of books from private schools, public Shipping Office says space is avail­ able. British Caledonian Airways are bringing them by car, call WIVES (tel: 676-1247) to make ) . libraries and individuals. airfreighted 15 boxes to Nigeria special arrangements. II THE BANK'S WORLD/NOVEMBER 1983 19 Around the Bank continued _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Solutions to Building There are three ways to obtain lot of the frustrations that used to • t· services from the Service Recep­ come with requesting a service." Problems tion Center. A request can be made Adds Service Center Assistant The office is too hot. The lights by phone to Building Operations, Carlos Nobre, "We try to respond just went out. A ceiling tile landed Ext. 73418, or in writing, or a staff as fast as we can, causing as little on your desk. The rest room is member may personally visit the inconvenience as possible. We re­ flooded. HELP! unit in Room F-135. Some requests quest staff cooperation. We need Call Service Reception Center. are accepted verbally, while others, staff to tell us when equipment The Reception Center was cre­ such as framing and electrical malfunctions or breaks down. With ated in the fall of 1980 to provide work, require a Form 1411. the limited resources we have, it's better service as the Bank acquired The nature of the request decides difficult to monitor every building more buildings and more staff. The its status: emergency, urgent or as closely as we'd like to. We need idea was to have a central clearing routine. Regardless of its status, everyone's help." III house manned by technicians who each request is given a work order could interpret calls for help and number to follow it up. This sys­ pass them on to the proper shop tem eliminates confusion and en­ for rapid response. One telephone sures that everyone is given the Annual Meetings number was reserved to call for all same timely service. Says Don service-related requests regarding Mayberry, who is in charge of the The 1984 Annual Meetings of the framing, plumbing, electrical work, Unit, "We're continuously trying to Boards of Governors of IBRD, elevators, painting, carpeting, and modify our system to meet staff IFC, IDA and the IMF will be held general maintenance. This saved needs. With staff cooperation, September 24 through 27 in the Bank employees the often consider­ we've been able to establish a fairly Sheraton Washington Hotel in able time needed to locate a parti­ good system, and we've removed a Washington, D.C. II cular source. The unit was initially staffed with Operating Engineers on a ro­ The Driver Gets a Free Ride tating basis and now has three staff with technical background who an­ swer queries. The work load has multiplied, and the Unit now deals with more than 3,000 orders per month, all the while solving num­ erous problems. Says Richard Keil­ man, Chief, Building Operations, "We've intensified our preventive maintenance effort to avoid equip­ ment breakdown, but with the number of owned and leased build­ ings involved, there are always go­ ing to be some problems." By analyzing the data collected, the staff in the Service Reception Center are able to pinpoint prob­ lem areas, which helps in planning and coordinating preventive main­ tenance, and serves to identify ser­ vices which are not being properly performed. Pam Severski of the Loan Department volunteered to become a driver in the Bank/Fund Van Pool The Center has another task en­ Program, and now gets a free ride to and from her home in Northern Virginia. In exchange, she suring that the owners of leased drives staff members to the Bank in the morning and back home after work, arranges for the van's maintenance, collects fares and fuels the vehicle. The van is leased from Van Pool Services Inc., buildings fulfill their obligations which handles insurance needs. Passengers pay a monthly fee, varying according to the distance when it comes to building deficien­ traveled and the number of commuters using the van. For more information on becoming a rider or a CIes. driver in the Van Pool Program, call James Edmonds Ext. 73411. 20 THE BANK'S WORLD/NOVEMBER 1983 Senior Staff Appointments JOHN M. PETTIGREW has been promoted to Engineering Adviser in the Water Supply and Urban Development Department. A Brit­ ish national, he joined the Bank in 1976 as a Sanitary Engineer in the Energy and Water Supply Division, South Asia Projects Department. He was promoted to Senior Sani­ tary Engineer in 1980, and moved to the newly formed Urban and Water Supply Division SANTOS ZIRKEL in 1982. Before joining the Bank, Mr. Pettigrew was an Engineering Inspector with the Scottish Development EVERETT J. SANTOS and THEO K. ZIRKEL have Department in Edinburgh, and with the Ministry of been appointed Chief Special Operations Officers of Housing and Local Government in London. IFC's Special Operations Unit. The Unit was recently established as part of the Corporation's continuing efforts to strengthen its portfolio. It will manage the re­ ISHRAT HUSAIN has been ap­ covery and rehabilitation of selected investments, re­ pointed Resident Representative in porting to the Chairman, Portfolio Committee. Nigeria. He will replace Ronald Mr. Santos, a U.S. national, joined IFC's Legal De­ Fennell in December. Currently, partment in 1974 as an Attorney. In 1981 he trans­ Mr. Husain, a Pakistani national, is ferred to the Office of the Vice President, Latin Amer­ a Senior Economist in the Western ica and Caribbean, to serve on the Review Committee Africa Country Programs I Depart­ of Adela Investment Company, S.A. ment. Prior to joining the Bank in Mr. Zirkel, a German national, joined IFC in 1969 1979, Mr. Husain served in various as Investment Officer, Department of Investments, Af­ management positions in the Plan­ rica, Asia and Middle East. In 1971 he transferred to ning and Development and the Finance Departments the Department of Investments, Latin America, and in of the Governments of Bangladesh and Pakistan. His 1975 he was promoted to Senior Investment Officer. first position in the Bank was as an economist in West­ He transferred to the Europe and Middle East Invest­ ern Africa Country Programs I Department working ment Department in 1977. mainly on Ghana, Liberia and Sierra Leone. He was promoted to Senior Economist in February 1981. JAVAD KHALILZADEH-SHI­ CORNELIS JANSEN, a Dutch RAZI, an Iranian national, recently national, has been appointed Chief, replaced Pieter Bottelier as Senior Country Program Review Division, Economist on the Resident Staff in Programming and Budgeting De­ Indonesia. Mr. Khalilzadeh-Shirazi partment, effective November 15. joined the Bank in 1974 through Mr. Jansen joined the Bank in the Young Professionals Program. 1962 as an Economist in Opera­ A year later, he was assigned as an tions (Far East). From July 1966 economist in the EMENA Country until his promotion in June 1969 Programs II Department, Division to Senior Economist, Western Af­ 2C, where he worked on Syria and Jordan. He trans­ rica Department, he worked as an Economist in the ferred in 1977 to the Public Finance Division in the Asia, Africa and Western Africa Departments. After a Development Economics Department. A one-year tour one-year sabbatical in 1974-75, he returned to the Bank with the Secretariat of the Brandt Commission in Ge­ as Senior Ecomomist, Office of the Director, Develop­ neva interrupted his tenure with DED. In 1980, he ment Economics Department. In December 1975, he ..t • transferred from DED to the Office of the Regional was appointed Senior Economist in the Office of the Vice President, EMENA, as Senior Economist. Director, South Asia Country Programs Department. THE BANK'S WORLD/NOVEMBER 1983 21 Senior Staff Appointments continued Retirees-------..... SERGE GUETTA, currently Chief of the Resident Mission in Western l' Africa, will become Assistant Di­ rector, Western Africa Projects De­ partment, January 1. Mr. Guetta, a Tunisian national, joined the Bank in 1969 as an Operations Officer for the Development Finance Com­ panies Department. In 1970 he was seconded to SOCOFIDE, the Zair­ ian Development Bank, as Director General. Mr. Gu­ etta returned to The World Bank in 1973 when he was HAZEL FLEMING MONIQUE MERALI September 30 October 7 appointed Resident Representative in Zaire. In 1976 he transferred to Headquarters as Chief, IDF Division, Western Africa Projects Department, and in 1979 was appointed to his current position. New Staff Members Brian Albinson Emilia C. Gomez-Fernandini Canada Peru Irrigation Engineer/ASP/IO/11 Operations Assistant/LCN/IO/17 Mercedes Aleman Marguerite Govoni Nicaragua Italy Secretary/LCP/10/17 Secretary/IND/IO/3 Yvonne Behrens Aline Habesch United States Australia KLAAS HAASJES EUGENE WEBB Secretary/IRM/IO/31 Secretary/EMP/10/24 October 4 October 31 Pieter Buy ten Pirouz Hamidian Netherlands Iran PersonneIOfficer/PMD/IO/17 Research Assistant/FPA/IO/4 Amadou Cisse John A. Innes Ali Montasser Estella Sekewael Niger United Kingdom United States Netherlands Highway Engineer/WAP/IO/17 Young Professional/YPP/IO/21 Systems Specialist/FOD/ I 0/3 Staff Asst./EDS/ I 0/3 Greta Craig Olga Jonas Charlotte Nordanlycke-Yoo Raghuveer Sharma Belgium United States Sweden India Secretary/LEG/ I 0/3 Young Professional/YPP/10/28 MedicaIOfficer/MED/10/13 Management Info. Analyst/ Cornelius T. Creeden Carlina Jones Yvonne A. Oppenheimer TRP/10/17 United States United States United States Runee Y. Smith Chief, Policy & Admin'; Secretary/WDR/ I0/3 Secretary / ASA/ I 0/31 United States ADM/I 1/1 Pamela Jones Salem Ouahes Secretary/LEG/ I0/3 Jacques Daniel United States Algeria Maria Suarez France Secretary/ADM/IO/3 Power Engineer/WAP/IO/3 Colombia Economist/WA2/ I 0/12 Thorkild P. Juncker Roxana Patino Secretary/LCP/ I 0/31 Da-Ching Dee Denmark Peru Tony M. Tran United States Young Professional/YPP/ I 0/3 Secretary/EGY/ I 0/ 17 United States Estimating Clerk/ ADM/ I0/3 Thuy Nguyen Le Nirmaljit Paul Accounts Asst./LOA/IO/II Shiferaw Demissie United States India Edna Venkatraj Ethiopia Secretary/SRP/ 10/ 17 Research Asst./FPA/ I 0/3 India Highway Engineer/EAP/IO/11 Clifford M. Lewis Andrew Power Secretary/ADM/ 10/31 Surinder Deol United States United Kingdom Ann M. Wallas India Marketing Poli~y Specialist/ Training Specialist/EMP/9/29 United Kingdom Lecturer/EDI/ 11/ I AGR/IO/12 Alison Richards Secretary/CL2/ 10/ 17 Maurine Deroy Aida Marks Australia Charles E. Wilson United States United States Secretary/EGY/ I 0/24 Canada Secretary/WAPI 10/ 17 Secretary/EA2/ I0/24 Salman M. A. Salman ED's Asst./EDS/ I 0/ II Hafez Ghanem Matthew C. Minahan Sudan Scott Yann Egypt United States Counsel/LEG/ I0/3 United States Young Professional/YPP/9/27 Management Training Spec'; Maurice Schiff Training Clerk/PMD/ I0/ 17 Denise Glennon PMD/IO/12 Belgium Cristina Zara United States Economist/DRD/ I 0/17 United States Reports Clerk/AD M/ I0/ 17 Secretary/ ASA/ I 0/3 22 THE BANK 'S WORLD/NOVEMBER 1983 The purpose of this column is to display of staff ID cards upon entry sion, therefore, cannot improve answer questions of broad interest into various Bank buildings. Is Bank security alone. Losses can be concerning The World Bank/IFC's there any evidence that this mea­ significantly decreased only if each policies and procedures. Because of sure has made the Bank more "se­ staff member secures Bank and space limitations, only questions of cure"? personal property, e.g., in locked wide interest can be published. If Answer: The current ID access files and desks, when the property you have such a question, send it to: control procedures were introduced is out of sight of the owner or user. Answer Line, The Bank's World, May 1, 1981. Of paI1icular concern Key and lock service is available in Room D-839. at that time was the fact that an in­ the Security Division by calling * * * creasing number of thefts were oc­ Ext. 75801. Robert F. Townsend, Question: During an annual physi­ curring during working hours as Chief, Security Division, Adminis­ cal last year, I was given a thor­ professional thieves managed to en­ trative Services Department. ough eye examination. I presumed ter Bank premises. Statistics show * * * it was in line with the Medical De­ that the new procedures have had a Question: Working in the H build­ partment's policy to provide this positive effect by making it more ing since June 1983 has been quite service for regular users of video difficult for unauthorized persons an experience. The phones seldom display terminals. Did I take too to gain entry. Since May 1981, very work and the air conditioning/heat­ much for granted when I expected few reports of suspicious persons ing system always seems to be do­ the Medical Department to inform have been received from staff~ but ing the opposite of what it should me of the results of my test? Also, while thefts, especially of purses be. Can we hope these enervating doesn't the Medical Department's and wallets, decreased initially, anomalies will be cured soon? examining physician have a little they increased during the latter part Answer: The problems you have chat with the staff member after of 1982. Control over access, there­ experienced frequently occur with the whole physical examination is fore, was tightened further in N 0­ new and sophisticated systems, un­ over to discuss the staff member's fortunately. The computer- con­ general health? (Editor's note: Since Answer trolled air conditioning/heating sys­ Answer: The new eye screening Line began, most of the ques­ tem in the H building is designed examination is now part of the reg­ tions received have been about to provide comfortable tempera­ ular complete physical examination personnel and administrative tures and to maximize energy sav­ of all staff members at Headquar­ matters. We have received few ings. However, it requires a shake­ ters and is not only for VDT oper­ about Bank policy, operations, down period during which condi­ ators. In the context of an annual etc. The preponderance of P&A tions have not always met stan­ examination, it is only in cases of questions seems to have cre­ dards. As we refine it, we expect abnormal findings that questions ated a de facto situation; i.e., the level of service to exceed that would be asked as to the possible Answer Line apparently only an­ provided by other Bank systems. In causes of those findings. The physi­ swers P&A questions. That, of the meantime, if you have a spe­ cians are expected to discuss the course, is not true. So if you cific problem, please call Building results of physical examinations. have a question about Bank pol­ Operations, Ext. 73418. We will do Staff members should not hesitate icy, operations, etc., send it to our best to correct it. As for the to ask physicians any questions Answer Line; we'll get the an­ telephone system, while the new they may have about any particular swer for you.) system, called Dimension, was be­ test which may be of concern to ing installed, we experienced many them~ the physicians will gladly problems. Since then, switching discuss these. Results of all tests vember 1982 by the requirement equipment components which have and examinations are entered into that all guests must have visitors' caused them have been replaced, the confidential medical record of passes. No "free ride" on someone and difficulties with individual the staff member for further refer­ else's ID card is permitted. Our ex­ phones have been resolved. If you ence and comparison later. Andre perience shows that most losses still have a problem, please call Lebrun, M.D., Director, Medical suffered by the Bank and by staff Telephone Repair H Building, Ext. Depart ment. members can now be attributed to 78888. David Karstens, Assistant * * * crimes of opportunity perpetrated Director, Facilities Management Question: Some time ago, the Bank by those who have legitimately en­ and Support Services, Administra­ . ~t • introduced the system requiring the tered the Bank. The Security Divi­ tive Services Department. THE BANK'S WORLD/NOVEMBER 1983 23