64205 Taming the jun.gle The .lide oj the year A. retiring Y.P. July 1974 · I' News about the men and women oj the World Bank Group the help of the Colombian Government organizations which are carrying out a program to settle Caqueta and make it Alderwereld, a productive region as part of the gen­ eral national development plan. retires; brings Manuel Bello is a colono. In his for­ ties, Manuel is one of the many Colom­ staff changes bian peasants who, 12 years ago, de­ On July 1, Simon Alderwereld, vice cided to leave so-called civilization be­ president-finance for the past six years, hind, in the state of Tolima, and face retired from the Bank. And on that the jungle. He is satisfied that he is day, I.P.M. Cargill, regional vice .presi- . winning his struggle. dent, Asia, took up the position left He does not feel alone. INCDRA vacant by Mr. Alderwereld's retire­ (the Colombian Institute for Agrarian ment. Reform) has allotted him and his fam­ ily a piece of land. Part of it is still At the same time, the Asia regional jungle. Machete in hand, he is widen­ office was divided into two-one for ing the soil where his rice cro~lush East Asia and the Pacific, and the and heavy-grows. other for South Asia. Each of the two new regional offices will have a coun­ But he takes particular pride in his try programs department and a proj­ cattle herd, which, in away, joins Ca­ ects department. queta and Washington. Manuel talks at length about his association with the The new East Asia and the Pacific World Bank-"they are my partners" Department will be ~eaded by Bernard -pointing to his 45-head herd. Thirty R. Bell, until July 1, the regional vice of them were bought from a loan from president for Eastern Africa. Gregory INCORA, funded by the World Bank B. Votaw, former country programs A colono hacks his way through the Colombian jungle. through a $·8.1 million loan made in director, 1, EMENA, was reassigned 1971 for the colonization of Caqueta. as country programs director for East Asia and the Pacific; S.S. Kirmani, A Better Life Colonists find a new ·life Manuel talks about his future. He projects director for Eastern Africa, took over the similar slot for East in ·the Colombian jungle believes that those who do not advance in life have nobody to blame but them­ selves. He proudly introduces three of Asia and the Pacific. Weiner Appointed By Jaime Martin his 12 children-two boys and a girl­ The word colono (settler) brings to modern comforts that sometimes their who are now attending primary school Effective July 1, also, Mervyn L. in the project area, also built with Weiner, former projects director for the Latin mind the heroic deeds of own efforts and many times their Gov­ ancestors who left their homes looking ernment provide. In the jungle, the funds from the Bank loan. "They will Asia, was appointed regional vice pres­ for riches or freedom. Through our colono rejoices in the few and simple have the better life I am trying to ident for South Asia. He will be as­ imagination quickly passes long lines comforts he has provided for himself. achieve for all of my children," he says. sisted by S.L.M. van der Meer, who of soldiers and priests and adventurers It is difficult for those enjoying the And he _ adds "They will have a was appointed projects director for the who went into the unknown, fought comforts of the modern world to imag­ chance to choose what they want to be­ department. and despoiled the Indian, and con­ ine that somewhere there are people come. I was born a peasant, and will always be, but my life is fuller, more In another change, S.S. Husain, quered the wild nature of until-then willing to carve- a new life for them­ former country programs director, II, free continents. selves and their families in virgin lands. enjoyable than the life my parents had. I am not alone in my struggle,. as they for Eastern Africa, was appointed­ Then we meet the Twentieth Cen­ But they do exist-men and women again, effective July I-regional vice tury colono, the man who left the slums struggling to achieve a better life. were." president for the same department. and the misery of the city to revert In Colombia, malaria and tubercu­ Ninety grade schools, six health cen­ Hans Adler was assigned as his new back to the virgin world of the tropical losis, together with malnutrition, join ters, over 230 miles of roads within the projects director. jungle. It is man again conquering the the jungle's poisonous snakes, mos­ 700,OOO-acre project area in the heart last frontiers-and there are so few quitoes and piranhas to discourage the of the Colombian tropical jungle, are And on the first of the month, left. colono and his family. But they come helping the 3,500 colon os already es­ M.J.W.M. Paij mans, former deputy Meeting him we cannot but contrast to stay, preferring a life of permanent tablished . in Caqueta. Another 2,800 director of personnel, was named coun­ his hard, difficult life with the life of struggle to a shack in the city slums. colonos are expected to have settled try programs director, 1, EMENA; the rest of the society he has left be­ The colono has no other aim than when the Bank-supported project is and Raymond J. Goodman was reas­ hind. to achieve a better life for his family completed. signed as senior operations. a.dvisor, In the city and on the modem farm, and himself. For that he counts on the the rich and poor alike boast of the support of his wife and children, and (Cont'd on Page 4, Col. 1) (Cont'd on Page 2, Col. 1) Page 2 Bank Notes July 1974 l Retire ... Cont'd Mr. Alderwereld, whose retirement supervisors discuss what they wrote brought on many of the staff changes, or didn't they? was born in 1909 in the Netherlands. The major criticism of the open He joined the Bank in 1946 as assist­ approach is that a superivsor will only ant to the Treasurer. His special re­ say nice things since he would not sponsibilities were the development of want to jeopardize his relations with the Bank's financial policy and super­ the supervisee. If the supervisor does vision of Bank loans. not realize the benefit which comes In 1965, Mr. AldelWereld was ap­ from being honest about his super­ pointed a vice president of the Bank visee's strengths and weaknesses, then and IDA. As vice president-finance, he is not a good supervisor. he was responsible for the activities And if the supervisee only wants to of the Treasurer's Department, the hear the good side of his performance, Controller's Department, the Pro­ without learning about the poor side gramming and Budgeting Department, which will have to be improved if he and the Office of the Internal Auditor. is to improve his chances for promo­ Simon Alderwereld J. P. M. Cargill In addition to these responsibilities, tion, then the supervisee is not being Mr. Alderwereld continued to serve as honest with himself or fair to others office of the senior vice president, Op­ Effective July 1, William D. Clark director of Projects until 1972, giving who may have to depend on him for erations, with the rank of department was designated vice president, External broad policy guidance for the projects income. director. Relations. work of the Bank and IDA. Variations Exist Finally, under the present system, significant variations exist among supervisors. Some show the text and rating to their supervisees, some ask their supervisees to write the text and rating, and others do neither. Should a vice president correct for the differ­ ent approaches, since the ratings done in this fashion are not comparable across supervisees? (The open system is already being used by an increasing number of division chiefs, including some in Personnel.) • The committee recommends shift­ ing the date of the APR to the anni­ versary date of the staff member's entry to the Bank. Many staff members feel that last year's review was overly rushed, was an unwelcome burden on the supervisor, and was needed mainly to make the Christmas salary adjust­ ment. Using the anniversary date, and eventually increasing the number of appraisal discussions would strengthen the supervisor's personnel management function as well as making the review more meaningful. Three Categories • The committee recommends that the rating system have three instead of four categories. If the performance ] Don't look now, but it's Annual is divorced from salary increases, then . the importance of this issue declines. Furthermore, quotas would not be July 1974 Performance Review time needed because it will not be neces­ sary to contain the number of indi­ a b Were you satisfied with your annual the size of their raises, not their per­ viduals who get high or average rat­ o performance review last autumn? formance. To achieve the basic objec­ ings. Also, the ratings should be linked B Many staff members were, but some tive of the APR, the committee rec­ to the individual's job description. c( were not. With the approval of the ommends separating the performance A different set of names for the A Delegate Assembly, the Executive rating from salary and promotion de­ caegories could help to make the APR A Bank Notes is published by and Committee of the Staff Association cisions. (While the information con­ more effective in achieving its basic for the staff of the Wodd Bank formed a commitee to study the per­ tained in the APR should be used as objective of self-understanding. These t~ formance review. The commitee has an aid in deciding on merit increases could be: Group ten times yearly in the De­ E just issued its first report. and promotion, the direct links of the --exceeds job requirements; partment of Information and Public Y After consultations with a broad 1973 review should be removed.) -meets job requirements; and Affairs. Inquiries should be ad­ d spectrum of the staff including mem­ • The supervisees should be asked -needs improvement. dressed to the Editor, Room E-836. el bers of the Personnel Department, the to read and sign their performance • The committee feels that staff Contributions from staff members n committee has suggested important evaluation. Only one supervisor should members should have access to their are welcomed. Deadline for letters o changes in the 1974 Annual Perform­ be responsible for the evaluation. If, personnel files with the exception of U and articles (in which brevity is the ance Review (APR). under unusual circumstances, it is nec­ references. Discussions with a wide b soul of publishability) is the 13th of • The objective of the review should essary to review the evaluation, this range of staff revealed doubts about each month. The editor reserves the concentrate on assisting the individual should be done with the successive the good faith of some supervisors and right, for reasons of space or clarity, to understand his or her strengths and line supervisors and the supervisee. the fairness of Bank procedure. Ca­ to edit all copy without notifying in weaknesses. It is this understanding The present system verges on the reers have been ruined through inten­ advance the author. which is essential to improving both hypocritical. Quoting from the guide­ tioned and un intentioned statements in a individual and Bank performance. lines to supervisors for the 1973 re­ personnel files that were not true. u Last year's APR had two additional view, one may read that "as nearly as These five issues are more thor­ iI :Editor ................... _.... Peter Muncie objectives: the establishment of merit possible, (there should be a complete oughly discussed in the committee's a Staff Photographer ...... Ed Huffman salary increases and the determination correspondence between the written full report which can be obtained from a of promotions. The present system en­ and verbal conclusions at each stage n sures that staff members worry about in the evaluation process." Did the (Cont'd on Page 3, Col. 4) n r4 July 1974 Bank Notes Page 3 te en ly Bank Calendar lot Staft Relations Library-The following books have been added to the Staff A summer game schedule has been arranged, and new players are welcome. th I Relations Library: Information may be obtained by calling Ted Hunting, ext. 2792) or Grant Sin­ bs Thirty-Four East, by Alfred Coppel clair (ext. 2440). les Thomas Jefferson, by Fawn M. Brodie ~r- Difficult Questions, Easy Answers, by Robert Graves bn Nile Green, by David Jordan International Camera Club-The Camera Club closed its 1973-1974 season The Library is located in Room D-1161, and is open from 9 A.M. to 5.30 P.M. with a banquet on June 7. Howard Carlson, the president, noted the very suc­ to Rental charges are three cents a day, including weekends. cessful year of the Club, and informed members and their guests that membership !: e, had risen to 107, the highest number in the Club's history. de I Dave DeRoche (brother of a Fund staff member) won the Photographer of the he Bank/IMF Bridge Club-The Bridge Club begins the second half of its Sum­ Year award. Dennis Brach, a well-known freelance photographer, selected the lO­ mer Cup Competition when it holds its next meeting, July 9. The club meets in slide of the year and nine other best slides from among the 102 winning slides ng Dining Room Number Five at the Fund, on alternate Tuesdays at 7.45 P.M. of the monthly competitions. Phillip Thorson's slide of the Ujamaa village school ~rs The Club has a new secretary-Frances Cabana-to replace A vinash Bhagwat. was selected as slide of the year. With this slide, Mr. Thorson has previously won :or Anyone, not now a member of the club, and who wishes to play duplicate bridge the special Nairobi Annual Meeting competition, and has received an honorable may call her on extension 4301. mention at the Club's annual exhibition. The other winners were Robert Dunn, (second and fourth place); Dave DeRoche (third and fifth place); David Beach, Fund (sixth place); Val Mahan, m, Bank Bowling League-It has been a rather long season, but the competition husband of a Fund staff member (seventh place); Harold Shipm~n, Bank (eighth ng has been great. The first three. teams have battled steadily for the first place place); Hugh Chambers, Fund (ninth place); and Fred Dirks, Fund (tenth place). nd trophy, but the places are pretty much set now. Staff members and their families can join the Club by sending $5 for their lsk First Place-Ding Bats, composed of Ray Russ, Walter Pizack, Cora del 1974-75 membership dues to Robert Tucker, Treasurer, Room N-440 (ext. 5513). nd Rosario, Nancy Centina, and Bob Warrenfeltz. lId Second Place--Swingers, composed of John Corbin, Meredith Dearborn, Dick ~r- Stoddard, Joan Brown, and Frank Delgado (and a special thanks to Joe Giambi, WIVES--every Tuesday-Opportunities Information Service-Room 213, F ne I who took over in the last part of the season from John when he injured his back). Building, next to the WIVES Office, 9.30 A.M. to 1 P.M. Tel: 477-5930. )le Third Place-continentals, whose members are: Pauline Newton, T. Norman Thursday, July ll-Youth Activities (15 and up)-tennis, swimming, and ~m (our octogenarian), Steve Farrell, Placida Espina, and Marivic Espina. (And in a picnic at Bretton Woods beginning at 4 P.M. For details telephone the WIVES ng special thanks to Glenda Hezekiah who was a staunch regular until she was trans­ Office. lng ferred to Nigeria.) Tuesday, August 6-0pen House in Maryland-Ditti Morse, hostess, 9300 The individual highs have been dominated mostly (but not entirely) by Pauline Fernwood Road, Bethesda, 10 A.M. Tel: 365-8345. ift­ Newton and Bob Warrenfeltz. Of We look forward to a good 1974-75 bowling season, and many thanks to all Tuesday, August 6-lnternational Needlework-Lora Nell Armstrong, Hostess, ni­ 3024 Crane Drive, Falls Church, Virginia. Tel: 534-6674. the people who made this year a most enjoyable and competitive season. try The Red Cross has inquired whether World Bank wives would be interested in M.!.D. eel staffing a Blood Mobile as blood donor aides. Duties would include weighing rly donors, taking temperature, serving coffee and donuts after blood has been given, on rIly + World Bank Soccer Club-The Bank soccer XI continued its "dollar" if not and watching donors for reactions. Volunteers would be expected to take a four­ exactly "sterling" performances against Colombia (7-1), Ecuador (5-2), Sierra hour training course. If enough interest is expressed, thi.s project would begin in 1st­ Leone (2-2), and Langley (2-5). September. If you are interested, telephone the WIVES office. Llld Newcomers Peter Edmonds, Kenny Thomas, and Ken (Mr. Personnel) Jones of made their "marks" on these games. It is to be hoped that our regular "pounder" len Jim Linton, after his month in England watching the World Cup, will bring us a Bank-Fund Chorus--Instead of a summer recess, the Chorus is contemplating ent few new ideas for next fall. a summer workshop that would be so arranged as to cover several aspects of the ew The Club had its annual Boot Party (for paid members and their guests) during art' of music. Interested participants should contact Guy Potvin (ext. 3357), the last weekend in June. Meriel Young (ext. 2163), or Chrissy Imhoof (ext. 5720). hat. !ad llce len les. p otpourri-People and Places · be With this issue, Bank Notes begins us along his two pet gripes, one of to a letter sent us recently complaining and 'D' system, in conversations such ,es­ a series of articles, written by mem­ which (smoking on elevators) was about the space Bank Notes devotes as 'Do you mean the 'D' building 'E' ldi­ bers of the Staff Association, on issues taken care of last month. The other? to the WIVES organization. We are dining room, or do you mean the 'E' 'at­ of some importance and interest to not all married, writes Anon, and in building 'D' dining room, or do you (ed "Jumping the queue (or probably Bank employees. The inaugural article fact, Anon goes on to say, we find mean· the 'NEW' Fund building, or do jumping the line in the USA?). The concerns proposed changes the Staff their WIVES activities quite boring, you mean the 'OLD' Fund building, or the Association would like to see in the number of persons who jump the din­ especially as there is no room left for do you mean the 'old executive dining PR Annual Performance Review exercise. ing room lines on the pretext of see­ more interesting topics. room?' " lsic ing a friend 20 or 30 ahead is infuriat­ After all that, we were certainly con­ To which we can only reply: "Dear ese And with this issue, Bank Notes ing. Recently no less than five secre­ Anon: Since our staff is small (one­ fused. Our scribe thinks it would sim­ takes its annual summer vacation. taries joined one who was immediately half person), we must rely on the plify things to number the two rooms Even the house organ for the New ahead of me. This practice is unworthy efforts others make to fill many of our 1 and 2, or, "to make things a little York Times, Times Talk, takes off in of the Bank's employ, and should be columns. We think WIVES is pretty more jolly," to have a name compe­ the summer, and since they· have eight subject to disciplinary action!" smart in sending us as much informa­ tition with the winner getting a free taff employees working on their monthly We tend to agree that the practice tion as they do; not only are they first­ lunch. leir newspaper, and since Bank Notes has is infuriating, but we aren't sure about est with the mostest, often they are of one-sixteenth that number (P&B please disciplinary action. At the risk of in­ the onliest with the mostest. So, Anon, Review .•• Cont'd 'ide take note), we feel that we deserve a if you know of some 'more interesting fecting everyone around you with a Madeleine Wyss (extension 4625). The out break, too. Next issue: September 2. massive case of lowered eyes and full­ topics' that go a-wasting, let us know. report includes an improved rating lOd ~ some nonchalance, we feel that the Better yet, write it up yourself." form. 2a- best ·way to deal with this is to give ~ The committee would appreciate en­ P. R. du Mee (E. African Projects) the offenders hell. It may not do any And finally, another anonymous staff suggestions and participation in ) in asks us when we intend to run a col­ good, but it's guaranteed to make you writer has sent in what we think is a the committee's work on issues which umn about pet gripes. We really don't feel better. good suggestion. "Could we have a will be studied in the coming months. lor­ intend to, because once started, it's new system of naming the dining !e's ~ .,t awfully hard to stop, and when there rooms other than 'E' and 'D'?" he om are only four pages to fill, the paper And although we have said in the writes. The letter we received goes on: This article was written for Bank might assume too profound a para­ past that we will not run anonymous "I, and I am sure others, have found Notes by members of the APR Com­ .4) noid tilt. Anyway, Mr. du Mee sent articles, we feel that we must respond it very frustrating to explain the 'E' mittee. Page 4 Bank Notes July 1974 The peop1e of the region say that the Caqueta 1and colonization project was very much needed. That without it the majority of the colonos now 1iving in the project area wou1d have opted for the city s1ums, persecuted by unem­ ployment and hunger. If the programs of economical, tech­ nica1 and social help could reach those hundreds of colon os stiH living in re­ mote parts of Caqueta and other places of the world, these pioneers of a new tomorow could join their voices to that of Manuel Bello who tells us-"I am proud of what I have been abJe to ob­ tain, because it is the beginning of a better life for my people." Mr. Martin recently returned from a photographic mission in Colombia and Ecuador. A trip to a Tanzanian school results in best slide award The photo (above) entitled Ujamaa the cash income with individual garden School, won the first prize as slide 0/ plots and a few 'jointly-owned cattle. the year in the Bank/Fund Camera "The trouble was ·that lack of rain Club's competition last month. The had left crop failures for three succes­ slide was originally, 0/ course, in sive years, so the families were surviv­ color; it is being reproduced here in ing on relief and odd jobs. black and white. "The scene was not very encourag­ The photographer was Phillip Thor­ ing-idealism frustrated by drought. son 0/ the Fund. In the accompanying But then we came to the school. article, he tells how he came to take "It was in a small tin-roofed build­ the picture. ing with half-open sides. The teacher A Voltaic market came out to welcome us-a serious young man speaking excellent English. "When we visited Tanzania last fall, my wife and I wanted to see how the As we entered, we were greeted by a chorus chanting in unison: 'Good EI ·MaaroUfi appointed as people lived and worked as well as to see the animals in the great game parks. mor-neeng mee-ster. Good mor-neeng mee-ses. Welcome to ou-r schooH' The eager young faces and the bright Upper Volta Resident Rep '~Near Lake Manyara, we had a eyes were in marked contrast to the The Bank Group has established a mission, will be to provide a direct link chance to visit ·one of Tanzania's dry and drab surroundings. Here was Resident Mission in Ouagadougou, the between the Bank and the permanent Ujamaa villages. They run on a coop­ the future of Tanzania! capital of Upper Volta, and will staff Inter-State Committee for Sabellan erative or socialist principle, soine­ "My wife engaged the children in a it with a five-year veteran of the Bank Drought Relief, which is also located thing like an Israeli Kibbutzina. We little basic English dialogue about whose last Washington position was in Ouagadougou. The Committee is had a long, instructive chat with the school in America while I slipped out that of a loan officer with primary re­ operated under the chairmanship of village chairman and several commit­ my camera, a single reflex 35 mm. sponsibility for the Bank's activities in the Minister of Planning, Rural Devel­ teemen, and then we were escorted Topcon, loaded with Ektachrome Upper Volta. opment, Environment and Tourism for around. film. I shot two or three frames with Abdallah E1 Maaroufi, a Moroccan Upper Volta. ''The village consisted of some 60 the available light. Probably the cam­ national and the appointed Resident In addition, the mission will main­ identical houses and a stable clustered era setting was about 1/60th and f.4. Representative to the West i'~·~frican tain close contact with the World in two groups on a desperately dry "I honestly didn't notice those country, is expected to take up his Health Organization unit recently set and rocky plain. The houses were of glistening eyeballs until the slides were duties at the new post in August. up in Ouagadougou to implement the wattle and earth construction with developed. I guess they were a product The aim of the new Resident Mis­ program for the control of river blind­ metal roofs, all built by the villagers of the light coming in the open side sion is to facilitate the development ness in the Upper Volta Basin, for themselves. The villages worked coop­ of the building, and the youngsters' and the implementation of the Bank which the Bank is helping to mobilize eratively to raise crops on an acreage fascination with my wife's basic Eng­ Group's program in the country. A the necessary external financing. (See a mile or so away, and supplemented lish." second and closely related task of the Report, April-May, 1974) Preparing lor the lood conlerence Testing lor anemia Bank Borrowing July-A.ugust 1974 · r News oj the World Bank Group load of sizeable power systems. None­ theless, to ·meet the continuing prob­ lems of supplying smaller systems, the IDA bill is world will still need hydroelectric de­ velopments, diesel units, gas turbines, resuscitated pumped storage plants, and fossil-fuel steam plants. by Senate vote Nuclear power in the developing The United States Senate, by a more world is coming. Will the developing than two-to-one margin, has approved world be prepared for it, however? a United States contribution of $1.5 The introduction of a new and so­ billion -to the Fourth Replenishment of phisticated technology generally re­ th'e International Development Asso­ quires a substantial amount of special ciation (IDA), the World Bank's "soft preparation. For the introduction of loan" window . . nuclear power, these preparations in­ clude: In doing so, the Senate injected new life into the replenishment measure Regulatory Aspects In all coun­ which was dealt a blow only last J an­ tries already engaged in nuclear activi­ uary when the U.S. House of Repre­ ties of any significance, installations sentativ~s rejected the same bill. are subject to a system of prior authori­ The Senate vote, taken on May 29, zation and control. The establishment was 55 to 27. of such a regulatory framework is es­ A reactor vessel is checked over before it is instaUed in an atomic power plant. sential for countries contemplating a The United States' share in the Urani1llDcores are inserted in the center of the vessel, and the nuclear reaction is nuclear power program, and it should Fourth Replenishment of IDA amounts controUed from a chamber beneath. cover not only the design, construc­ to 33.3 per cent of the total, down from tion, and operation of the plants, but the 40 per cent share it agreed to for also trading in, transporting, proces­ the Third Replenishment. IDA funds sing, disposing of, or otherwise using were to have run out on June 30 had not the world's richer nations agreed to Nuclear power's economies fissile and radioactive materials. Laying down an appropriate regula­ the replenishment. tory framework cannot be accomp­ The Senate vote came a week after of scale attracting interest lished casually, or quicldy. Countries contemplating the acquisition of nu­ 15 donor countries, meeting in Bonn, Germany, pledged to put up $714 The proportion of electricity gener­ enough to accommodate units of this clear facilities must give early atten­ million beginning July 1 even though ated in nuclear power facilities is today dimension. tion to these considerations. they were not Jegally obliged to unti.l increasing at an extremely rapid pace. Compared with conventional oil and full Congressional approval of the bill Though it now makes up only about coal-fired power plants, nuclear plants Nuclear Insurance Insuring nuclear had been made final. 5 per cent of all electricity, projections are characterized by markedly higher facilities against claims which may The United States occupies a key suggest that nuclear power's share of capital costs and lower fuel costs. They arise from third parties requires special position in determining the financing production will increase to about 20 also show greater economies of scale. attention in view of the possible con­ of IDA. For the agreement to be effec­ per cent by 1980, and could possibly Nuclear power costs thus decrease sequences of a major accidental release tive, countries contributing a minimum exceed 55 per cent by the end of the more rapidly than fossil fuel power of radioactive materials. Most West of 80 per cent of the $4.5 billion in­ century. costs as the unit size and plant utiliza­ European countries have subscribed to volved must ratify it. Without the one­ Even before the recent rise in oil tion factors increase. Indeed, under the 1960 Paris Convention which as­ third to be contributed by the United prices, it would have been economical­ the conditions prevailing in recent signs to the operator-not the supplier States, the required passage could not ly attractive for more than a dozen of years, nuclear plants of 500-600 MY --of a nuclear plant absolute and sole be achieved. the World Bank's developing member capacity, operating at 70 per cent or liability for damage to third parties. countries to acquire more than 100 higher plant utilizations factors, have Developing countries will need to Bank President Robert S. McNa­ units 500-600 MV or larger for oper­ become economically attractive in most create adequate insurance coverage mara called the Senate vote "a sign of ation during the next decade. industrial countries. and procedures, and in particular, they the United States' desire to go ahead Argentina, Brazil, China, Egypt, Even with the changed competition must agree clearly with foreign equip­ with the IDA replenishment." Greece, India, Israel, Korea, Mexico, position of nuclear power brought ment and fuel suppliers · the extent of He added that "without IDA funds, Pakistan, the Philippines, Romania, about by the recent increases in oil the latters' liability in case of accidents. poor nations which have been hit par­ Spain, Thailand, and Yugoslavia all prices, nuclear power continues to be have or will have power systems large attractive mainly for supplying the base (Cont'd on Page 2, Col. 1) , (Cont'd on Page 3, Col. 1) Page 2 Report July-August 1974 J Nuclear ••. Cont'd mercially available nuclear power I plants, and which are presently de­ International Safeguards Under in- pendent on imported oil, will recon­ ti ~. temational treaties subscribed to by sider their options as rapidly as pos­ ~ practically all nations, countries acquir­ sible, with particular attention to nu­ b ing nuclear facilities and materials clear power, as well as to coal. iI have to submit them to the inspection, t1 supervision, and other control pro­ May Consider Projects d cedures of the International Atomic P Energy Agency (IAEA). Its purpose is It is thus likely that the Bank may be approached in the near future to P to avoid diversion of any fissile or ra­ s: dioactive materials to non-peaceful consider financing nuclear power uses. It is unlikely that industrialized projects. P countries would permit export of nu­ From the institutional viewpoint, the f clear power facilities in the absence of role of the Bank could be important " an agreement to submit to these safe­ because the acquisition of nuclear d guards. plants will require a major transfer of tl technology. Through its long associa­ a Training The introduction of nu­ tion with electric power systems in de­ p clear technology to the developing veloping countries, the Bank could 11 world will require that preparatory help marshall the resources needed to steps for manpower training-which carry out the essential steps develop­ CI will very likely have to take place over­ A view of the 150,OOO-kilowatt atomic power plant on the Garigliano River, ing countries will need to take if they Ii seas-be planned sufficiently in ad­ north of Naples. Sixty per cent of the costs of the plant, which began to supply are to make a successful entrance into el vance. Even if a country has a national power to Rome in 1964, was financed by the Bank. the nuclear age. h nuclear research center, countries "go­ Sf ing nuClear" will generally require ad­ Ways to Help ditional specialized outside help to carry out feasibility studies; assist in Bank seen ready to finance Drawing upon its experience with other projects with complex technical the invitation and evaluation of offers to supply equipment; and supervise the some nuclear power projects and institutional implications, the Bank could help developing countries design, fabrication, construction test­ ing, and initial operation of nuclear Although the World Bank has made Six years ago, the Bank presented a cope with this new technology by ad­ plants. loans and credits worth more than report to its Executive Directors on ministering technical assistance pro­ $6 billion for the development of elec­ the prospects and problems nuclear grams financed by the United Nations Help can be obtained from a num­ Development Programme; by bring­ ber of experienced private companies, tric power, it has made only one small power might hold for the developing loan in connection with nuclear power world. In the report, the Bank stated ing adequate specialized assistance and should be required directly from from the International Atomic Energy the national atomic energy authorities generation-in 1959 to Italy. that it would "expect utilities needing Since then, only ten developing to expand their generating capacity . . . Agency and the national atomic energy of the supplier countries or indirectly commissions of industrial countries to through the IAEA. member countries of the Bank h ave to decide on the basis of a detailed made their own commitments to ac­ study ... which alternative offers the bear on the problems of creating a Public Relations A final but not quire nuclear power generating facili­ most econom ic solution to the prob­ regulatory system; by helping in the unimportant preliminary step would be ties, and of these, only three-India, lem." selection of private engineering com­ carrying out a serious and honest "Pub­ Pakistan, and Spain-have plants now The Bank's consistent position in panies needed to carry out feasibility lic Education" program directed at the in operation. Except for one informal regard to nuclear power facilities, the and safety studies; and by including public to improve its understanding request in 1968, no one has sought report went on, was that it "will con­ the financing of such studies in prior of this new technology and to explain Bank financing of either a nuclear in­ sider the proposed (nuclear) project loans for other power fac ilities. how it affects people from any environ­ stallation, or any component. just as it would consider its alterna­ Finally, the Bank could help ensure mental and safety point of view. Financing for nuclear installations tives," provided that the borrowing that the nuclear projects it finances are T Experience in industrialized coun­ has been readily available, and gen­ utility reaches the conclusion that a carried out under the careful super­ I' tries has shown that uninformed and erally on attractive terms. Moreover, nuclear power station meets all eco­ vision of competent architect-engi­ a sometimes irrational fears can cause in the past, nuclear plant and its main nomic tests. neers, that equipment is supplied by serious difficulties to the implementa­ elements have not been available on a This is still the Bank's position. qualified manufacturers, and that pro­ tion of nuclear programs, which might sufficient and broadly international Present indkations are that develop­ visions are made for adequate training have been avoided by thoughtful and basis to make Bank fin ancing appro­ ing countries with electric power sys­ of local staff to ensure the project's timely informational efforts. priate. tems large enough to operate com- successful operation. Indonesia gets nancial assistance to finance its further development programs. But both Indo­ Mission set s nesia and the World Bank have agreed first Bank loan that in view of the shortage of IDA money, concessionary finance should in Upper Volta When the World Bank made a loan be reserved for the poorest nations The Bank Group has established a only. The limited IDA fu nds neces­ tF of $48 million to Indonesia on June Resident Mission in Ouagadougou, the tI: 12, it marked the emergency of that sarily limited Bank operations in Indo­ capital of Upper Volta, and will staff S( country as one which no longer re­ nesia; it is expected that now, however, it with a five-year veteran of the Bank Bank Group operations will be able to tl quires concessionary loans from the whose last Washington position was gt Bank's affiliate, the International De­ expand considerably in the country. that of a loan officer with primary re­ ti velopment Association (IDA). IDA money is generally available sponsibility for the Bank's activities in As of June 30, IDA credits to ·Indo­ only to states whose annual per capita Upper Volta. b nesia totaled $561 million for 37 proj­ incomes are less than $300. Per capita w incomes in Indonesia-and in Nigeria Abdallah EI Maaroufi, a Moroccan ects. Until June of this year, no Bank Abdallah EI Maaroufi aJ as well-are less than that, but with national, and the appointed Resident Photo by G. F ranchini loan, now carrying an interest rate of Representative to the West African F 7~ percent, had ever been made to increasingly favorable balance-of-pay­ operated under the chairmanship of b ments figures due to increased oil country, is expected to take up his the country. the Minister of Planning, Rural Devel­ p prices in both countries, the two are duties at the new post in August. opment, Environment and Tourism for c Indonesia's balance-of-payments sit­ now able to finance most of the devel­ The aim of the new Resident Mis­ Upper Volta. tc uation has recently improved due to opment projects on near market terms. sion is to facilitate the development . In addition, the mission will main­ n ~ncreased investment activity and the first Bank loan to Indonesia and the implementation of the Bank tain close contact with the Wodd higher oil prices. Oil revenues are ex­ will help the country modernize its Group's program in the country. A Health Organization unit recently set pected to increase from less than $500 o 4,200-mile railway network-South­ second, and closely related task of the up in Ouagadougou to implement the tJ million in Fiscal Year 1972/73 to east Asia's largest. The project whose mission, will be to provide a direct link program fo r the control of river blind­ more than $3,000 million by next year. y total cost may eventually total more between the Bank and the permanent ness in the Upper Volta Basin, for h Despite increased revenues, how­ than $150 million, is being managed Inter-State Committee for Sahelian which the Bank is helping to mobilize ~ ever, Indonesia will still need con­ by the Indonesian State Railways un­ Drought Relief, which is also located the necessary external financing. (See tinued international technical and fi- der a five-year investment plan. in Ouagadougou. The Committee is R eport, April-May, 1974) p 4 July-August 1974 Report Page 3 ~r IDA ••• Cont'd forts take time. IDA is here now. It is ~- an on-going institution, and deserves ~­ s­ ticularly hard by rapid rises in the world prices for food and fuel will not our support." His words were echoed by Senatof Bank Borrowings Set Record ll- be able to devote resources to achiev­ Edward M. Kennedy who lold his The World Bank borrowed a record $1,865 million in Fiscal Year 1974 ing a minimum standard of living for colleagues, "It is our responsibility as which ended on June 30 of this year. The previous highest amount was the their people. I am confident that all a 'have nation' to support and encour­ $1,744 million borrowed in Fiscal Year 1972. donor nations will recognize the im­ age every serious effort to assist those The average cost to the Bank of the transactions charged against the portance of bringing the Fourth Re­ people whose lives otherwise hold no Bank's borrowing program for the year was 7.51 per cent. Yields ranged ly plenishment into force as soon as pos­ future, no chance, no hope. These from between 3.96 per cent and 8.75 per cent. Borrowings from oil­ to sible." are the people of IDA. These are the producing countries totaled $485.0 million. Japanese issues yielded $461.5 er In the debate on the Senate floor people whose lives in a very tangible million for the year. There were no issues in the United States. preceding the vote, Democratic Senator way will be enriched or not by our Ie Hubert H. Humphrey noted that actions here today. It is unthinkable World Bank Borrowings--Fiscal Year 1974 ot "IDA's role becomes more critical to­ that .}\Ie will deny them this chance." (In Millions) ar day, as some 40 nations with more In September of last year, during the Currency l u ue of luue of than a billion people face financial ruin Bank's Annual Meeting, held in Nai­ a­ Public Offerings and famine as a result of the increased robi, Kenya, 24 contributing members e- price of fuel, fertilizer, industrial com­ of IDA and Switzerland agreed on the Japan Kuwait :I.r­ 7%% IS-Year Bonds, due 1979/88 ¥ 20,000.0 76.0 714 % 15-Year Bonds, due 1976/88 KO 25.0 84.4 - r I· ~~ . modities, and transportation. terms of the $4.5 billion, Fourth Re­ Sweden I il 7%% is-Year Bonds, due 1979/88 SKr 75.0 17.8 Switzerland 7% IS-Year Bonds, due 1989 SwF 100.0 30.8 "IDA's funds cannot bail out these plenishment. 209.0 •- p countries," he continued; "they are too The Third Replenishment of IDA Placements ey limited. But they provide some relief, funds totaled $2.4 million. In the last With Central Banks and Governments Republic of Austria 4% Loan, due 1979/89 $ 31.6 31.6 Ito encouragement, and hope. More will three years, IDA credits have amount­ Deutsche Bundesbank 8* % Note, due 1977 ,", I OM 154.5 63.6 have to be done to assist the most ed to more than one billion dollars 8* % Note, due 1978 OM 101.5 41.8 8% Note, due 1978 OM 148.5 54.9 severly affected nations. But other ef- yearly. 8% Note, due 1978 OM 173.5 64.1 Government of Iran 8% 12-Year Loan, due 1986 $ 200.0 200.0 Italy 71,4 % Note, due 1978/88 Lit 20,000.0 32.5 Ith The Bank of Japan ; -. 7.01%-7.44% Serial Obligations, :al due 1979/80 ¥ 95,000.0 359.4 he 8.19% Serial Obligations, due 1980/81 ¥ 7,200.0 26.1 les The Bank. of Libya 7 ~% Bonds, due 1983 LO 30.0 101.4 .d­ United Arab Emirates 8% Bonds, due 1980/89 UAED 300.0 76.0 International 8 %% Two-Year Bonds, due 1975 $ 170.0 170.0 '0­ 6.90% Two-Year Bonds, due 1976 $ 257.7 257.7 .os 1,479.1 19­ Other Switzerland 6%% Six-Year Note, due 1979 SwF 150.0 51.2 ,ce 6%% Seven-Year Note, due 1980 SwF 150.0 51.2 gy 61h% Eight-Year Note, due 1981 SwF 150.0 51.2 Venezuela 7% Bonds due 1977/87 gy Bs 100.0 23.3 176.9 to Total Borrowings FYI974 1,865.0 a he m­ at all times; " ity -that the goal of world food secur­ ng ity is to be achieved essentially through lor voluntary stock-holding at the national level; lre -regular consultations among gov­ lfe ernments on the world stock position, Threshing barley in Ethiopia. Though the recovery in world grain output in er­ and to recommend action, if needed; 1973/74 is encouraging, the world still has not recovered its capacity to deal with gi­ -and that developing countries a major crop failure. by Photo by Kay Muldoon should receive expanded and coordin­ ro­ ated international assistance to enable ng them to participate in the national :t's stock-holding program. Wide range of proposals The World Bank and the regional banks have indicated to the F AO set for consideration at their willingness to participate, as a part of development projects, in the World.Food Conference financing of storage facilities and re­ lated infrastructure, and to continue programs to strengthen the food pro­ Food grains-or rather, the lack of tives. One major initiative is the con­ duction base in the developing coun­ them, continue to be in the news, at­ vening, next November, of a World tries. tracting attention from usually unlikely Food Conference under United Na­ sources. And, in spite of the fact that tion's auspices, to review the world IMFto Help the 1973/74 grains crop has been a food problem, and to consider means The International Monetary Fund good one, the future foodgrain situa­ to improve world food security. has indicated that it could help coun­ tion remains uncertain. A wide range of proposals is ex­ tries should balance of payment prob­ Output in developing countries is pected to be considered, including lems arise in the building up and main­ barely keeping pace with population; those from the Food and Agriculture tenance or' reserve stocks. The World world reserves are seriously depleted, . Organization (FAO) on national and Food Program and the U.N. Develop­ and can only be rebuilt gradually. international food reserves, and me~s­ ment Programme also have promised :hini Fertilizer supplies are insufficient to ures to increase production more their cooperation. A bountiful maize harvest in Malawi. of bring about an increase in foodgrain rapidly. The preliminary phase of the No­ 'el­ production levels; indeed, in some The proposal-to ensure the main­ vember food conference is expected text of development programs. Dis­ for cases supplies are so low that a main­ tenance of basic food stocks at levels to focus on a review and appraisal of cussions are expected to concentrate tenance of current levels is difficult to to safeguard minimum needs in the the world food problem. The present on ways to achieve a faster growth lin­ maintain. event of ::,. major crop failure-was dimensions and determinants of hunger of food production and a reduction of .rId While the recovery in world grain endorsed by the F AO conference last and malnutrition, and the problems of losses and wastage in the production set output in 1973/74 is encouraging, and November. economic growth, employment, and and distribution processes. the though the early prospects for next The essential elements of the income distribution, will also be ana­ The strengthening of world food se­ nd­ year are good, the world still will not adopted strategy are: lysed. curity and food aid policies will also for have recovered the capacity to deal -the recognition that it is a com­ The main part of the conference loom large on the agenda of the con­ tize with a major crop failure. mon responsibility of the entire inter­ will try to promote action by the world ference. The conference itself will be See The obvious danger to the world's national community to ensure the ade­ community towards the resolution of open to all member countri-es of the peoples has prompted several initia- quate availability of basic foodstuffs the world food problem in the con- U.N. Page 4 Report July-August 1974 · r Study shows productivity is affected by anemia's presence Iron deficiency anemia, the mQst heart, and, in severe cases, can even­ prevalent disease knQwn to. afflict man tually lead to. death. tQday, is nQt dramatized, unlike mQst Susceptibility to infectiQn is alSo. in­ d~seases, by Qvert, clear-cut symptQms creased if irQn is lacking in the diet, which make it glaringly QbviQUS to. the because, enzymes which play a vital untrained eye. It has, therefQre, been rQle in cQmbating infections, and which relatively neglected in public health contain iron, are alSo. affected. programs which Qften have PQlitical HQQkwQrm eradication, hQwever, QvertQnes. even if feasible, WQuld nQt lead to. a Anemia's symptoms are subtle, ad­ significant reductiQn in anemia, since ditive, and fQr many peQple, lethal. It anemia is due fundamentally to a die­ has been ignQred because, like mQst tary deficiency Qf iron. If the hQok­ Tests, measuring the effects of anemia on workers' endurance, established a rela­ nutritional diseases, it is masked by worms were removed, stQres of bQdy tionship between anemia and physical capacity. . infectiQns and Qther diseases, which, irQn CQuld nQt revert to. normal levels in mQst cases, arise precisely because withQut iron treatment. It is therefore which workers were- getting a placebo, tious diseases and their higher prQduc­ Qf a primary state Qf malnutritiQn. mQre-realistic to. attack the problem of and which were receiving the iron tivity, as compared to. the anemic sub­ A recent WQrld Bank-sPQnsQred anemia by nutritiQnal means. treatment. jects." study amQng nearly 1,000 construction The Bank-financed study was car­ After iron treatment, the output of The wQrking paper concludes that and plantatiQn wQrkers in IndQnesia ried Qut by a nutritiQn survey team, the anemic tappers reached the level the main factor determining whether has demQnstrated that anemia, Qnce fQrmed under the auspices Qf the Indo­ of the non-anemic tappers. Indeed, an individual becQmes anemic must be thought to be a disease mainly preva­ nesian Nutrition Research Institute, an bQth the irQn anemic and placebo the environment, and it goes Qn to add lent amQng females and children, affiliate Qf the IndQnesian Ministry Qf anemic groups raised their productivity that "Qnce (hQokworm) infestation or drastically hinders the productive ca­ Health, and the Massachusetts Insti­ after treatment. Only the former grQUp, anemia occurs, the environmental, eco­ pacity ·Qf afflicted adult male wQrkers tue Qf Technology. however, was able to. raise its output nomic, and nutritional factQrs are also.. In additiQn, the study reveals that to. the level Qf the non-anemics; the likely to enhance the debilitating effects anemic wQrkers have dQuble the in­ Subjected to Tests placebo grQUP'S productivity was still Qf the disease resulting in a vicious fectiQn rates as have nQn-anemic In the first phase Qf the study­ approximately 15 per cent below that circle. wQrkers. cQnducted in late 1972-almost 600 of their iron-treated counterparts and the non-anemics. Trapped in Events road and canal cQnstruction wQrkers Treatment Effective were subjected to tests that measured The Bank RepQrt (Staff Working "An anemic individual will tend to. The study also. shQWS that CQrrec­ the effects Qf anemia on their endur­ Paper No. 175-lron Deficiency Ane­ work less, and thus earn less income tive treatment Qf victims Qf anemia is ance. A significant cQrrelation was mia and the Productivity of Adult if he is Qn a piecewQrk or an incentive bQth effective and cheap. Indeed, the fQund between anemia and the test Males in Indonesia) concludes "In the basis. This, in turn, predisPQses him benefit-cQst ratio, in regards increased results, thus establishing a relatiQnship absence of any other restrictive vari­ to. a PQQrer nutritiQnal status (he buys productivity, of correcting this nutri­ between anemia and physical capacity. ables, this would imply a cost/benefit less food), aggravating further the tiQnal deficiency amQng rubber plan­ But because the mobility of con­ ratio in terms of treatment CQsts (latex anemia, and increasing (his) suscep­ tatiQn wQrkers was found to. be 260: 1. structiQn wQrkers, and the casual na­ export earnings of as high as 1:260, tibility to. infectiQn. Increased absen­ Iron deficiency anemia occurs when ture Qf their emplQyment made it diffi­ if we projected that the yearly increase teeism, lowered productivity, and less losses of iron from the body are nQt cult to. establish the stable sample in the amount of latex Qbtained per income will therefQre result, and he is balanced by the absorption Qf suffi­ needed fQr measuring the effects over hectare is 150 kilograms (dry weight), trapped in a series of events in which cient iron to. compensate fQr both nQr­ time of increased iron intake Qn labor that the market CQst of this is an extra he can neither imprQve his income, his mal and abnormal losses. In the trop­ productivity, a secQnd study Was CQn­ $44 per hectare, and that the cost of nutrition, nor his health." ics, the cQmbinatiQn Qf bleeding from ducted, using a sample of 400 planta­ treatment per hectare (each tapper is (Some workers did temporarily in­ hQQkworm infestation-sQme 600 mil­ tiQn workers enjoying mQre stable assigned three hectares) is US$0.17 crease their intake of some local foods liQn people are thQught to. suffer frQm conditions. per year." during the study. Extra, edible leaves such infestatiQn-and a PQQr dietary Both the construction workers and Similar results were observed among that were eaten were found to contain intake Qf iron aCCQunt fQr the mQst the plantation workers had a similar the weeders following the treatment enough iron to raise the blood iron CQmmQn cause of iron deficiency incidence of hookworm infestation and period. It was not possible, hQwever, status. Thus, gQod fOQd iron sources anemia. anemia. to calculate the cost/benefit ratio. as­ do exist in the Indonesian environ­ Iron deficiency anemia affects physi­ sQciated with their increased produc­ ment, but they are Qnly consumed to cal capacity by reducing the availabil­ Health Examined tivity. The weeding cultivation of rub­ any significant extent when the price ity Qf Qxygen to. the tissues. This, in The health and nutritional status of ber trees obviQusly affects latex pro­ of rice becomes prohibitive as it did tum, affects cardiac output and the the plantation workers was examined, duction, but by hQW much under the during the periQd Qf the study.) and before treatment began, analysis particular circumstances is not known. What, then, can be done? revealed that both tappers and weed­ The productivity of the treated weed­ ers increased, however, by 25 per cent Many Options Open ers who were anemic had average pro­ ductivity Qutputs about 20 per cent as compared to thQse who. showed no S.S. Basta and A. Churchill, authors below those recorded for nQn-anemic improvement in their irQn blood status. Qf the paper, and members of the workers. Almost half the wQrkers were Bank's Transportation and Urban Infections Decreased Projects Department, cQnclude that: anemic; 85 per cent suffered from hQokworm infestation. In addition, infections decreased ''In view of the widespread CQncern (Tappers are thQse whose job it is markedly in all groups given iron pills. of iron deficiency anemia in many de­ to cQllect latex from as many as 500 There was no. change in thQse given veloping countries, and the impact of rubber trees a day. Weeders are re­ the placebo. this disease on morbidity and produc­ sPQnsible for excavating jungle roots The study's findings reinforce the tivity, it is recommended that applied around rubber trees. Each weeder hypothesis that income, health, nutri­ research programs to eradicate this normally excavates an average Qf be­ tiQn, and productivity are deeply inter­ deficiency should begin as soon as pos­ tween 70 square meters and 100 related. Non-anemic subjects cQnsumed sible. Investigations should involve ed­ square meters of earth daily.) more calQries, prQtein, irQn, and vita­ ucational, nutritional, and public Every day for two months, 300 min C than did the anemic subjects. health programs to reduce its inci­ plantatiQn wQrkers were given a pill; "There is no doubt," the study adds, dence. The attack on anemia can take half the pills contained 100 mg Qf iron, "that the relatively superior income, several forms, and many options are and half were placebos. The observa­ nutrition, and health of the non-anemic open. They depend on the country, the The productivity of treated weeders tiQn and recording team was not aware subjects ... are very much responsible commitment, and the populatiQn in increased by 2S per cent. who was or who was not anemic, nor fQr their lowered incidence Qf infec­ question."