59518 HANDE Is DandY-page 5 Economic Crisis Continues comprehensive policy packages, such as marketing reform, improv­ Up ate on Sub-Sahar ing input supply, and more effi­ cient transportation which will in­ duce a quick supply response and by Pushpa N. Schwartz expand real incomes; measures to '. restrain growth of incomes in the service sectors, particularly govern­ ment; and, most important, mea­ he continuing economic crisis in this region, excluding Nigeria, T in Africa remains the single most worrisome development grew at a rate of 1.2% and 1.6% in 1981 and 1982, respectively. sures which increase the flow of ex­ ternal resources particularly when commodity export prices are ex­ problem facing the Bank and the Nigeria~s GOP fell 5.2% and 2.4% tremely low and the capacity to im­ international community. That in these years. With an average port needs to be augmented by fi­ message is at the heart of the re­ population growth of 2.7% for the nancial assistance. cent internal World Bank staff pa­ region, per capita incomes de­ Some African governments have per, Sub-Saharan Africa: Progress clined, continuing the adverse taken steps to increase agricultural Report on Development Prospects trend of the 1970s. All major eco­ output by improving the efficiency and Programs. nomic indicators-Gross National of their marketing agencies and by The problems in these countries Product (GNP) growth rates, agri­ giving the private sector a greater are deep-rooted, and they have cultural growth rates, the level of role in providing farm inputs and been further aggravated since the exports and food imports-remain in marketing farm produce. Bank's 1981 report, Accelerated matters of extreme concern. Development in Sub-Saharan Af­ Policy reform for African coun­ Rehabilitation Emphasized rica: An Agenda for Action, by the tries will have to be phased over Greater attention to efficient use deterioration in the global eco­ many years, and its impact on out­ of public sector resources is evident nomic environment and prospects put, balance of payments, budget, in the setting of priorities and pro­ within which African development and on the structures of economies gramming expenditure. Subsidies has to take place. will be felt only in subsequent which no longer fulfill priority so­ There is an important ray of years. cial or production objectives are hope, however, within the grim Four areas of policy reform are being reduced or eliminated. Reha­ picture, according to the Progress of central importance to reversing bilitation rather than new invest­ Report. African leaders, officials the negative economic trends in Af­ ment is being emphasized. And and others now recognize more rica. They are: major reviews of investment pro­ clearly the need for a major reshap­ ( 1) the development of more ap­ grams have been made. ing of their domestic economic pol­ propriate price policies' But policy reform needs to be icies. Many African governments (2) improvement in institutions, widened and formulated to the have begun this long process of re­ particularly those serving agricul­ unique circumstances of each coun­ form. Its extent should not be exag­ ture; try. Most African nations need as­ gerated either in terms of coverage (3) increased efficiency of re­ sistance in undertaking the detailed in individual countries or the num­ source use in the public sector; and country and sector analysis re­ ber of countries in which policy re­ (4) increased attention to popu­ quired as the basis upon which pol­ form has begun. It is clear, how­ lation controL icy reform must be built. ever, from the Progress Report, Many African countries have sig­ The World Bank is increasingly that sustaining and extending this nificantly increased producer prices providing technical assistance for process are now in jeopardy in sev­ for foodstuffs, and several have policy analysis and advisory work eral countries because of inade­ made exchange rate adjustments. at the macro-economic and sector quate external support. These changes are often necessary levels in Sub-Saharan Africa. From conditions of policy reform, but three operations and $10 million a Per Capita Incomes Declined they are not sufficient. year in each of fiscal years 1977 to The crisis in Sub-Saharan Africa The changes have to be made in 1980, it has increased to 10 opera­ is predominantly a production cri­ relation to other prices in the econ­ tions and $105 million in FY81 sis. Gross Domestic Product (GOP) omy and need to be part of more and eight operations and $57 mil- COVER : John Hansen, the man behind HANDE . Photo by Alan Drattell 2 THE BANK'S WORLD/SEPTEMBER 1983 lion in FY82. In addition, the Bank ing finance in support of compre­ panies; identifying instruments, initiated in FY83 a special program hensive programs of domestic pol­ particularly in the financial sector, to second Bank staff to advisory icy and institutional reform. Of 15 to help promote investment proj­ positions in IDA-recipient coun­ SAL countries worldwide, six have ects that IFC cannot reach directly; tries. Eight positions were stafffed been in Africa-Kenya, Ivory and taking equity and near-equity in African countries in FY83. Coast, Malawi, Mauritius, Senegal positions in project financing to The Bank's economic and sector and Togo. SAL operations in each provide to African enterprise sup­ work on Sub-Saharan Africa coun­ country are designed as a series, port in the form it needs most. tries has been expanded. Increased thereby providing a systematic In several areas of critical do­ em phasis is being given to the de­ structure within which studies and mestic policy issues where there is sign and presentation of this work other requirements for future stages an overlapping of Bank and IMF in a way that will be of greater use of a reform program, incl uding programs, steps have been taken to to governments in designing their technical assistance, can be ar­ ensure that, through consultation, programs. Bank research is also be­ ranged. In some of the countries differences in analysis and judg­ ing examined to direct more of it where an economy-wide SAL oper­ ment are resolved and that conflict­ toward topics of concern to African ation is not yet feasible, other non­ ing advice and policy requirements countries. Collaboration with project lending operations have to member governments avoided. African research institutions is ex­ been designed to provide quick dis­ pected to increase. More Fruitful Matching bursing funds for rehabilitation and fuller use of existing capacity in Collaboration between the Bank Limited Creditworthiness critical sectors or sub-sectors (e.g., and other development agencies Regarding Bank lending pro­ in Sudan, Tanzania, Uganda). has intensified during the last two grams to Africa, important progress SAL-supported programs need to to three years. The agencies recog­ has been made in increasing the be implemented in many more nize that aid coordination, both share of IDA going to Sub-Saharan than the six African countries, but within recipient countries and Africa. This share grew from 27% administrative and political prob­ among major financing institutions, ($954 million) in FY81 to 37% lems constrain their wider develop­ is increasingly important to ensure ($1.231 billion) in FY83. The ment. The Bank is assisting in the more fruitful matching of new World Bank is currently program­ overcoming technical and adminis­ aid commitments and reprogram­ ming 32% of IDA resources for the trative constraints through its own ming of past assistance to the spe­ FY83 to 87 period. IBRD lending economic work and the provision cial requirements of adjustment to Sub-Saharan Africa was approxi­ of technical assistance. programs in Africa. mately 10% of total IBRD lending There are many examples from in both FY81 and 82 ($859 million IFC's Special Efforts other parts of the world of the m u­ and $962 million, respectively) but Meanwhile, the IFC has been en­ tually reinforcing impact of policy dropped to 5% ($563 million) in gaged in special efforts to increase reform and external support. The FY83 due particularly to a marked its activities to strengthen and pro­ recent success story of Turkey, for lending to Nigeria. Bank­ decline in I mote private sector development in which a major and special effort by IDA lending to the region for the Sub-Saharan Africa. Its net com­ all parties was mobilized in 1980, FY83 to 87 period is planned to mitments for operations in this re­ is one obvious example. It is also increase 5% a year in real terms gion over the last five fiscal years worth recalling that less than 20 compared with 2.9% growth in have been between 10% and 15% of years ago South Korea was barely IBRD and IDA as a whole. How­ its annual commitments. The size considered to be performing well ever, given the limited creditworth­ of its various investments in Africa enough to justify IDA support. iness of most African countries for has been small. These countries cont, inue, of IBRD lending, this will not be pos­ However, the environment in course, to face developmental prob­ sible unless IDA funding is in­ which private ente.rprise operates in lems. But despair has given way to creased considerably over levels of many African countries is not al­ hope, and this has been achieved the last two years. ways conducive to undertaking new through the sustained pursuit of de­ The pattern of IBRD and investments. Consequently, among velopmentaUy oriented programs IDA lending has been modified in the initiatives IFC is considering to by their governments and with the order to be more responsive to the promote investment opportunities sustained support of the interna­ needs of African countries. Struc­ are: The setting up of a project de­ tional community. And in all these tural Adjustment Lending (SAL) velopment facility to identify and cases, bilateral and multilateral .:t • operations were introduced in 1980 develop viable project opportuni­ agencies have played effective and have provided quick disburs­ ties; investment in promotion com­ roles. III THE BANK'S WORLD/SEPTEMBER 1983 3 The An ua al Since 1946 l' by Alex Spiliotopoulos L ater this month, at the Annual Meetings in Washington, D.C., a ritual will be repeated underscor­ interpretive World Development Report about the same time each year." ing the significance and importance As soon as 1983 began, the Exec­ of The World Bank's work. The uti ve Directors called a sem inar to Executive Directors of the Bank suggest articles and ideas for the will submit the 1983 Annual Report forthcoming edition. Then the to the Governors (the IFC pro­ process of soliciting material and duces its own report and submits it extracting statistics began, setting separately to its Governors). off the cycle of writing, editing and The tradition of annual account­ designing that ended in June. At ings goes back to 1946 at the Bank. that time, the EDs held a seminar The first report was quite different more than $82 billion. In the be­ to discuss the document, make in size and substance from the lat­ ginning, Bank staff numbered 72. changes and, ultimately, prepare it est one. Today, almost as many people for submission to the Governors. The 1946 Annual Report con­ (60)-most of them working part­ tained 35 pages and reflected an or­ time on the document-are in­ Tight Production Schedules ganization in the building stage, volved in the production of the In the meantime, there is a con­ summarizing institutional aims, Annual Report itself stant process of negotiation with policy and containing a modest fi­ In the past, the editorial material the EDs. By the time July arrives, a nancial statement. and statistical data for the Annual significant portion of the material Each edition since then has had Report could be compiled over a has already been finalized and its own charm and merit, although weekend. The current edition took typeset, allowing the Bank to meet the first few are primitive in com­ more than six months because it is tight production and, hence, pub­ parison to the one published this a much more detailed and far­ lishing schedules. month. reaching document. The Bank has 90,000 copies of The physical appearance-other the Annual Report printed, packed, Four Times as Much than the large increase in the num­ and flown to its 144 member coun­ This year's publication, for in­ ber of pages-has changed dramati­ tries for distribution. stance, cost more than four times cally, too. The paper stock, for in­ The final product certainly brings as much as the Bank's six-month stance, originally matte (a flat, dull a glow of satisfaction to Mr. Mun­ expenses reported in 1946, accord­ surface) has become glossy paper. cie, his staff, and the EDs, as the ing to Peter Muncie, Senior Editor Recent editorial changes have in­ new Report becomes a vital source (Periodicals), Publications Depart­ cluded a more in-depth analysis of book to its users. ment, and the man who puts the the global economy. Dr. Said El­ Although Mr. Muncie has a document together each year. And Naggar, the dean of the Executive personal preference for less tabular $550,000 covers printing in seven Directors, had made that sugges­ matter and less duplication with languages (English, French, Span­ tion two years ago to Mr. Muncie some other Bank publications, '"the ish, German, Japanese, Arabic and in an effort to make an ever more Report," he says, '"contains tons of Chinese) and Price Waterhouse and complex world scene more under­ information. Any question a person Company's fi!lancial audit. standable. may conceivably have about the Of historical significance is the For the past few years, the An­ Bank can be answered by this pub­ fact that the 1946 edition an­ nual Report has actually changed lication. Few people, though, it nounced the first call for capi­ little, according to Mr. Muncie. seems, are actually familiar enough tal-2% of the then 38 member '"It's almost like the old Volk­ with its contents to use it to its po­ countries' subscriptions. Aside swagen Beetle: little changed from tential. Once that familiarity is from that, the Report covered little year to year. It slowly got better, achieved, however, it will soon business. though, as I hope the Report has. make its way to the desk top and In retrospect, comparisons are '"However," he adds, '"media im­ stay within easy reach during the revealing. In 1946, the nascent pact, which usually follows the Re­ year." lender had total assets of a scant port's release, has lessened, perhaps Staff may obtain free copies of $383 million. This year assets are due to the publishing of the more the Report in the Book Store. III 4 THE BANK'S WORLD/SEPTEMBER 1983 "W hen I go on mission now I leave with a black book full of statistical tables. The avail­ able data are pre-printed, and there are blank columns for updating. I gather new data in the field, and when I return to the office it takes between 5 and 20 minutes to up­ date each table. Within a week­ and-a-half of my last mission, the basic tables with the updated data were available to me," says John R. Hansen, a Senior Economist working on Sudan in Eastern Africa Country Programs Department 2. At one time, Mr. Hansen would not have had the completed tables on his desk in less than six weeks following return from a mission. But several years ago, he devel­ oped a computer program he sub­ sequently named HANDE for Hansen's ANalytical Device for Economists. HI wanted the name of the program to reflect what the program does, and I wanted a catchy acronym," he says. "HANDE is a friendly, interac­ tive computer language that allows Photo by Alan Drattell economists, using English-like com­ mands, to store and retrieve data, perform virtually all mathematical piqued his interest in what comput­ One difficulty Mr. Hansen had operations commonly required for ers could accomplish. Fortran is a was to convince people that you country economic and sector work, basic scientific programming lan­ didn't have to be a programmer to and format and create tables." guage. use CHAT. ""It is no more necessary Mr. Hansen says that the pro­ "It was not until I came to the to be a programmer to run pro­ gram makes the work of country Bank that I really got involved grams like CHAT and HANDE," economists "more pleasant and with computers," he says. ""In he says, "than it is to be an auto­ productive. It frees them from the 1971, I was on mission to Iran. In motive engineer to drive a car." drudgery of repetitive calculations, connection with it, we produced a and gives them more time to think number of tables that showed 'Ancient' Techniques about the real economic issues. It growth and structural change. It CHAT became operational in the also relieves secretaries from the took eight hours to calculate a sin­ Bank in 1976, but, while it was an tedium of typing tables, and gives gle page. improvement over manual meth­ them time to use their talents for "I thought to myself that there ods, it was locked into Hancient" more creative work." must be a better way than using a computer techniques. Hit was slide rule and growth rate tables, strictly punched card-based and all Not a ' Computernik' which was literally what we were batch (material is queued for proc­ Mr. Hansen has been with the doing then. So, I prepared a pro­ essing)," Mr. Hansen explains. Bank since 1970, the past four posal for a computer program to be ""The user might have to wait a years with his current Department. written by our Computing Activi­ half day or more before finding out He does not describe himself as a ties Department, the forerunner to that a simple mistake had been "computernik," someone who is IRMD (Information Resource made which could have been cor­ addicted to this technology, but he Management Department)." rected in seconds. ..t • says that a two-hour course he took The result was CHAT for ""CHAT was limited, and we in Fortran programming in 1967 CHange Analysis Tables. needed something that allowed us THE BANK'S WORLD/SEPTEMBER 1983 5 to do more than just 'crunch' num­ bers. With CHAT, for instance, you couldn't even convert data from A Candid Look ~ . thousands to millions; they had to be repunched. We also needed a at Yesterday program that was handier to use, one that would identify errors im­ by Stanley Please mediately and let the user correct them interactively." (Edi tor's note: Stanley Please will reflects on some of the broad issues be retiring at the end of September of Bank policies and activities in Over 11,000 Uses in order to return to his home in which he has been particularly in­ On his own time, Mr. Hansen Oxford, England. Mr. Please joined volved.) proceeded to develop HANOE. the Bank in 1963 and un til 1972 "While returning from a mission to was responsible for a significant Sudan, I began to see how I could part of the Bank's work on domes­ t is one of the many distressing pull the program together. I worked at night and on weekends at home. tic resource mobilization. Since then he has successively held the I aspects of retiring from the Bank that colleagues ask you to look I got some valuable help from peo­ positions of Chief Economist in backward, to reflect on what is dif­ ple in the Joint Computer Center East Africa and of Program Direc­ ferent now from when you joined at the Bank. Some of them an­ tor in East Africa and subsequently the Bank 20 years ago and what are swered my technical questions, oth­ in East Asia and Pacific. Since the lessons to be drawn. My in­ ers provided the materials I 1980 he has been Senior Adviser to stincts are always to look forward needed. Although we have been us­ Ernest Stern, the Senior Operations at emerging problems and chal­ ing the program at the Bank for the Vice President, and has been lenges. But history is sometimes the past 2-1/2 years, I'm still refin­ particularly responsible for helping useful provided it does not become ing it." to develop the Bank's programs of too antiquarian or nostalgic. In any Mr. Hansen uses a Texas Instru­ Structural Adjustment Lending and case, colleagues persist. ments terminal in his office to input for the Bank work on Sub-Saharan When I arrived in the Bank in data to the Burroughs computer at Africa. In this article, Mr. Please 1963 from British academic life, I the Bank, and other economists in the institution are using similar ter­ minals for their data entry. "So far, HANOE has been used well over 11,000 times in the Bank. In the 'History is last three months, average use has been over 30 times per day. Every sometimes useful operating region and several other Bank areas, such as the Economics provided it does and Research Staff, are using it, and it has become a vital part of not become too the new Computer Support to Eco­ antiquarian or nomic Work (CSEW) system. "The support and cooperation nostalgic. ' I've gotten from my Region in in­ stituting use of the program has been outstanding, and I am pleased -Please the Bank is considering alternatives to give it a permanent institutional home where professional program­ mers can continue its support and development. " Copies of the HANOE manual are available to staff. Contact Yvonne Powers of the Eastern Af­ rica Regional Computing Center, Room 01256, Ext. 78217. III Photo by Alan Drattell 6 THE BANK 'S WORLD/SEPTEMBER 1983 was particularly surprised and nomic man, forever visualized as both in and outside Africa that not shocked by two matters-three, if I weighing gains against costs in all a word of the report would have include the informality of shirt his decisions," that "we now seem been different whoever might have sleeves in the office as compared to be dominated by the idea of an been sitting in the seats of power in with my assumptions about the all-rational economic govern­ the White House, in Downing sartorial standards of bankers de­ ment"-more farsighted because it Street, in Bonn, Paris-or in 1818 rived from the Bank of England was timeless and, therefore, able to H Street-in 1981. But whatever image. bring to bear a more distantly these difficulties in perception and focused telescopic faculty in the al­ credibility, the Bank must continue A Sense of Compassion location of national resources. to address the issue of the appro­ First, as a committed socialist This excessive confidence in gov­ priate role of government and of who believed and continues to be­ ernments and its apparent but dan­ the public sector more generally lieve in the responsibilities of gov­ gerous obverse-i.e., lack of confi­ from the point of view of promot­ ernment for generating a sense of dence in people-has, I believe, ing the efficient use of resources compassion in society for helping been markedly reversed in recent and the achievement of develop­ the underprivileged, for ensuring years. We now emphasize, for in­ ment and poverty redressal objec­ that the national and international stance, the economic rationality of tives. economy operates both efficiently smallholder farmers as the center­ and at full employment levels of piece of our agricultural strategies Second Shock activity, and other such responsi­ and also the economic efficiency of My second shock on joining the bilities, I was surprised and the technical options selected by Bank was to discover the small shocked by the emphasis which the small-scale industrialists and arti­ part which Bank economic work Bank at the time gave to the public sans. Moreover, the importance of then played in the design of Bank sector in general and to the govern­ private savings generation is more operations. Of course, a dialogue ment in particular. Here was an in­ frequently examined together with on economic reports had been, stitution which had the reputation the policy and institutional reforms from the early days of the Bank's of being ultra free enterprise and which are required to mobilize existence, typically a part of the cy­ market-oriented, yet had more con­ these savings. Although more of cle of handling the economic work. fidence in the rationality, morality our analytical work needs to be di­ Furthermore, in some countries, and competence of governments rected along these lines, the change this dialogue played an important than I ever had. I assumed this in the Bank's approach, compared part in influencing government could be explained or excused in with the 1960s, is considerable. economic policies and, in others, regard to Bank operations by the governments were made aware that legal requirement either to lend to 'Pragmatic Economics' major changes in their policies governments or to lend against This change is reflected in the re­ would be required if Bank lending government guarantees-IFC had cent World Development Report, were to be maintained. There were only just been established and DFC which has taken an eminently bal­ also a few instances-most obvi­ (Development Finance Companies) anced approach to this issue of the ously the introduction of program operations were also a recent inno­ role of government in develop­ lending to India in the mid-60s-in vation. The bias was, however, less ment. We are assumed by many which the pattern of Bank opera­ easy to explain away when it came simply to be reflecting the ideologi­ tions was modified in order to sup­ to the Bank's economic work. cal position of some of our major port policy reform. It was out of this "culture shock" shareholders rather than practicing In general, however, the design that the so-called "Please Effect" "pragmatic economics"-to use of Bank operations was not domi­ emerged. It continues to be a our President's term. nated by a focus on policy and source of wry amusement to me Anyone doubting this credibility broad institutional development is­ that it was those in the Bank and problem has simply to examine the sues. Those undertaking the eco­ the IMF, who were far to the right reception accorded to the Bank's nomic work all too frequently slept of me politically, who opposed the report on Accelerated Development not only in different beds but also publication of the article in which in Sub-Saharan Africa (see pages 2 in different bedrooms from those these ideas were first presented. and 3 of this issue of The Bank's who were designing lending opera­ ' I The theme of the article was, after World). I continue to believe that tions. As a research economist at all, very unsurprising. It merely this report reflects a consensus of that time who was interested in suggested that: "whereas the 19th the technocratic concerns of Bank pursuing the policy and operational .t . (century) saw the dominance in staff working on Africa. Yet, it is implications of research results policymaking of the idea of eco­ impossible to convince its critics rather than the logical interest and THE BANK'S WORLD/SEPTEMBER 1983 7 beauty of the analysis, I found it commitment from governments. to the operational initiatives which difficult to understand the rebuffs They have, therefore, to date been have been introduced to enable the which one received when, for in­ limited to 15 countries. However, Bank to provide more effective as­ stance, trying to have the issues of in many other countries, Bank op­ sistance to the process of urgent industrial and financial policy erations have been modified in ma­ policy reform (SALs, export devel­ placed on center stage in the design jor ways to ensure greater attention opment projects, public administra­ of our lending to DFCs. to policy issues. tion projects, rehabilitation projects, In recent years, major steps have apex lending to industrial financing been taken to change the approach Perceptions and Priorities institutions, etc.). and design of Bank operations. This greater integration of Bank Have we lived up to these new Economic and sector work is now concern over policy issues with its demands upon us if we are to en­ recognized as providing the intel­ operations has demanded major sure that the Bank is being suffi­ lectual basis for all our activities in changes in the pattern of activities ciently responsive to the needs of a country and not simply an "add­ of Bank staff and others and in its developing member countries in on" to those activities. Our opera­ their perceptions and priorities. It the changed and extremely difficult tions are more and more designed has, for instance, required that our circumstances they are confronting to emphasize policy issues at all country and sector economists not during the 1980s? Have we been stages of the operational cycle­ only produce the sound diagnostic flexible enough and responsive identification, preparation, ap­ studies which they have always enough while keeping to our inter­ praisal, negotiation and supervi­ produced, but, in addition, that national mandate as a development sion. It should be emphasized that they become more capable of de­ financing institution? I believe the it is not, as some people suggest, veloping specific and phased action answer must be "yes"; but to this simply a matter of the Bank being programs as well as alternative pol­ monosyllabic response I would add "tougher" and "more resolute" in icy options for governments; it has "not sufficiently." ensuring that policy changes are required that loan officers move implemented. The whole design of from an emphasis on loan process­ 'The Tethered Giant' operations has to be changed if pol­ ing to become the focal point for From the serenity of Oxford I icy is to be taken more seriously. formulating strategies for convert­ hope to be reflecting on these and ing the policy concerns emerging other matters relating to the role of Reform of Domestic Policies from the economic work into effec­ the Bank in the world. I already The most obvious reflection of tive operational designs; it has re­ have a title for my musings which, this change can be seen in the deci­ quired that project officers be more perhaps, best captures my feel , ings sion in 1980 to embark on a pro­ concerned with formulating and about the Bank-"The Tethered gram of Structural Adjustment monitoring policy and institutional Giant." The challenge to the Bank Lending. This decision derived development aspects of their opera­ is to increasingly realize its poten­ from a recognition that the reform tions than with the physical and fi­ tial for helping to address the prob­ of domestic policies, which had nancial implementation of a proj­ lem of the millions of people living previously been desirable for in­ ect; it has required that managers in degradation in the world, about creasing a country's rate of growth become more aware of the need to whom A. W. Clausen and our pre­ and development, became essential justify Bank operations not simply vious President, Robert McNa­ and urgent in the deteriorated in terms of their positive contribu­ mara, have spoken so eloquently. global economic environment of tion to development (hopefully this To do this, the Bank must remain the 1980s if any modicum of devel­ has always been the case) but also a "Gentle Giant"-firm on the opment momentum were to be in terms of whether we are maxim­ critical issues of development but maintained. The SAL program was, izing our impact on development; maintaining the sympathetic and therefore, designed to enable the it has required that our borrowing cooperative stance toward the de­ Bank to give its financial support governments recognize that the veloping world which has been and its focus during the whole op­ Bank is more concerned with help­ built up over the years. This is a erational cycle to critical policy and ing to resolve the broader sector, challenge which will test to the institutional issues which could not macro and institutional problems maximum both the Bank's sub­ be handled effectively either by the of development in their countries stance and style. I believe the Bank IMF or under regular Bank opera­ than with the physical implementa­ has the staff which can measure up tions. SALs have, however, been tion of projects we are helping to to the challenge, and I will be ob­ very ambitious in terms both of finance; and, finally, it has required serving its progress beyond 1983, at their coverage of macro and sec­ that the Bank's Executive Directors a distance, but with great interest toral issues and of the degree of and Governors should give support and confidence. 11 8 THE BANK'S WORLD/SEPTEMBER 1983 'Be a GO'od eighbo -and Win' United Way Ki:cks Off October 3 by Jane Carroll W ould you like a vacation in Mexico, all expenses paid? A Betamax video cassette recorder, United Way entitles the donor to one chance, regardless of the size of the gift. If the contribution is made Color TV (Murrell's) Cases of Scotch, champagne (both from MacArthur Liquors), and two tickets to Paris, a case of via payroll deductions, the donor wine (Calvert Liquor Shop) Scotch? These are just some of the receives two additional chances. prizes being offered in the raffle to And every $50 contributed or Dinner for two at Tiberio, Jean­ benefit the 1983 World Bank and pledged earns an additional chance. Pierre, La Plaza, and Cantina IFC/United Way fund drive. Thus, someone pledging $200 d'Italia The Bank's President, A. W. through payroll deduction would Gift certificates from Britches and Clausen, will open the campaign receive seven chances in the raffle: Riziks Monday, October 3, at a breakfast one for participating, two for pay­ Nautilus membership meeting with more than 150 staff roll deduction, and four for the size members who have volunteered to of the gift. Mr. Clausen will preside at the serve as department representatives Caroline Cumming, Latin Amer­ drawing for prizes Tuesday, Novem­ for United Way. The raffle is lim­ ica and the Caribbean, Country ber 29, at I :30 p.m. in the Eugene ited to Bank and IFC staff who will Programs Department I; Kamlesh Black Auditorium. To guarantee automatically receive a chance to Gillespie, Country Policy; and volunteerism and confidentiality~ win one of 15 prizes by giving to Maritza Ferreira-Snowden, Indus­ the cornerstone of The World Bank United Way and supporting the try, have made arrangements for all and IFC/United Way campaign­ charitable work of nearly 200 local the prizes, which community busi­ the United Way organization will agencies and organizations. nesses donated. The complete list administer the raffle. Staff mem­ The theme of this year's cam­ is: bers win place their pledges or paign is "Be a good neighbor~and Grand Prize: Eight days in Mexico contributions in a sealed envelope, win!" Francis van Gigch of the City, Taxco, and Acapulco for two, together with a self-addressed en­ Latin America and Caribbean Proj­ including hotel accommodations, velope, and give the envelopes to ects Department, chairman of the sightseeing, touring by motor the United Way representative in Bank's United Way campaign, ex­ coach, and air transportation their department. The envelopes plains that the idea of the raffle is (American Express and American will be opened by United Way, and to encourage Bank staff to support Airlines) the number of raffle tickets to the charities in the greater Wash­ which the donor is entitled wiU be ington area and have fun doing it. Sony Betamax video cassette re­ placed in the self-addressed envel­ "You can win two ways," he says, corder (Murrell's) ope and delivered to his or her of­ "not only by being lucky in the fice. For added security, the United Two tickets to Paris (TWA) draw, but also by making our com­ Way administrators will keep a rec­ munity a better place to live." Two tickets to some exotic destina­ ord of the ticket numbers sent to Any contribution or pledge to tion to be announced (Pan Am) each contributor. 11 What United Way Means to Me Caroline Cumming, Zimbabwe, Ad­ off, though I was the only one hurt. The Rescue Squad ministrative Assistant, Latin America arrived within minutes, calmed down my entire family, and Caribbean Country Programs bandaged me up, and wanted to take me for X-rays. Department I They are one of the United Way agencies. They are not "I personally benefited from the paid for their work, but do it on their own time. I was .t . United Way when I was in a car acci­ most impressed by that." dent. The car was a complete write- continued next page THE BANK'S WORLD/SEPTEMBER 1983 9 Ann O. Hamilton, United States, Hans Fuchs, Federal Republic of Chief, Indonesia Division, East Asia Germany, Director, Industry and Pacific Country Programs Department Department "Since we are living in this com­ "Those of us who are lucky-fi­ munity, and to the extent that devel­ nancially, educationally, physically, opment is our chosen field of activ­ and emotionally-ought to do what ity, we should look at the nearby we can for those whose lives are much harder because problems of people who are obviously not as well off of a handicap, an illness, or a lack of economic or edu­ as we are. Here at the Bank we have many privileges cational opportunities. It seems to me important that and we are protected from the economic situation, but those of us who derive some satisfaction from the no­ we ought to recognize that others have been badly hit tion that we are helping whole nations improve their by the recession and try to help in whatever small way lot ought to try to do a similar thing in our own back we can. There are Bank staff for whom it means a sac­ yard. rifice, but even a minor contribution would express "The United Way covers a broad spectrum of agen­ concern for the community. It is a misconception to cies which tackle a wide range of problems. The very say, 'My contribution will be too small and therefore fact that the agencies meet the United Way's strict eli­ not worth doing.' Even a small donation will help." gibility standards means they are competent and effec­ tive providers of services, and so you can be sure your contribution is used well. At the same time, if you Attila Karaosmanoglu, Turkey, Vice have a specific interest-a particular illness or handi­ President, East Asia and Pacific Re­ capping condition, the special problems of youngsters gional Office or of old people, or some other particular concern-the "I support the United Way for United Way provides an efficient way to meet the two simple reasons. First, we live in need." this community and spend a good portion of our adult and professional lives here. Although this community is one with a high average income, there are still many untended social welfare needs. It is simply being good neighbors to help Harinder Kohli, India, Acting Assis­ people less fortunate than ourselves. tant Director, Policy, Industry "The second reason is probably more in the interest Department of our own families. Our children are brought up here. "I first learned about the United The happier the community the better the environ­ Way in a letter from Mr. ment we provide for our families." McNamara-one of the few subjects about which he annually communi­ cated directly to staff. This and subsequent conversa­ Erlinda ("Cora") Favis, Philippines, tions with American friends have indicated to me the Administrative Secretary, West value and special nature of United Way. For example, Africa Projects overhead costs are lower than for most other programs, "I am involved-directly or indi­ and it is one of the more efficient ways of channeling rectly-in various food programs in funds to a series of charities and worthy causes. Bank the city, and I see there is a tremen­ staff often have little time to give personal attention to dous need, even in my neighbor­ community activities. A convenient way to give help hood. Especially now that there have been a lot of cuts and take an active part in the community is to make in welfare, more and more people are coming to avail some contribution to United Way. themselves of these programs. There is a starving "You often hear people say, 'If we are going to con­ world there that needs our help. People think all the tribute to charity, why not contribute back homeT For poor are only in the Third World, but right here in the me it is not a question of either/or. If there are causes United States there are a lot of hungry people as well. back home that you want to support, send part of your "I was also a Red Cross volunteer in Washington at contribution home and part here. We are members of one time, and I have seen the good work they do. The this community, and some of our obligation is here. fact that United Way is there and integrates all these My family in India spread their contributions among services in our community is cause enough for us to several causes; in the same way, my wife and I decide support it, I think. Some people say they prefer to give the total pie and divide it among charities in different to charities in their own country. But I say that does countries. " not preclude helping here too." 10 THE BANK 'S WORLD/SEPTEMBER 1983 The Myths of Development Munir P. 8enjenk here are myths that compound some of the prob­ clothing it is only 10.5%. T lems of development, and Munir P. Benjenk, Vice President, External Relations, attempted to dispel some "Another widespread myth, pushed at times by the developing nations, is that protectionism is bad only in of these false ideas in a recent speech in London before regard to the industrial countries, but essential in the the Diplomatic and Commonwealth Writers Associa­ poorer countries given their low stage of development. tion of Britain. Sustained protectionism is counterproductive every­ "There is a popular view that the Third World is uni­ where. The developing nations that have made the form and cohesive. Politically, some Third World greatest progress in the last quarter of a century, nota­ leaders like to present this view, and challenging it is of bly those in East Asia, have been precisely those that itself politically controversial. There may have been a have adopted outward-oriented trading policies. This is case some two or three decades ago for talking of a bi­ a clear conclusion from numerous studies that we have polar globe of North and South, but from the economic conducted at The World Bank. perspective, at least, such a view is distinctly unhelpful. "And the search for solutions to our current prob­ "There are, of course, tensions and rivalries within lems is confused all the more by yet another myth, the developing countries themselves. This assembly of that economic recovery in the industrial nations will be more than 100 countries is composed of nations at like a magic wand that will bring about big rises in varying stages of development, with major differences Third World exports, and so resolve the debt crisis, in the types of problems they confront. They cannot be and secure global economic health. If only things were all lumped into one basket, and one cannot hope to so simple!" meaningfully address their difficulties by ignoring the differences that exist between them. For example, there Optimistic Scenarios is a wider income gap between the developing coun­ "The truth of the matter is that even very substantial tries themselves than between the middle-income na­ economic growth in the industrial nations, stimulating tions and the industrial nations. Development prescrip­ increased exporting chances for developing countries, tions can only be based on a particularized and not on increased prices for LDC export goods and expanded a generalized diagnosis." flows of commercial bank lending will not suffice to enable the developing countries to service their debt Protectionist Pressures burdens without problems. One can play with many "A major threat to the resolution of existing prob­ different scenarios to calculate the scale of the problem lems lies in the surge in so many industrial nations for years to come. Even very optimistic scenarios point now of protectionist pressures. The case for such dan­ to a continuing and serious debt-servicing problem for gerous protectionism is frequently based in part upon numerous Third World nations. another myth-namely that developing countries have "Some of today's debt problems are due to bankers penetrated the markets of the developed countries to who are imprudent in lending and some are due to na­ such an extent that they have begun to hurt the indus­ tions who delayed taking painful domestic adjustment tries of the industrial nations. The fact is that the share measures by borrowing more funds than they could of the markets of the industrial nations accounted for adequately manage. But as I have indicated, the debt by Third World products is still tiny. problem is the product of many assorted economic fac­ ""To be sure, the share of developing country exports tors which were often beyond the control of the LDCs. in total consumption in developed countries doubled It is a dangerous myth to suggest that sharp recovery in in the last decade-but the jump was just from 1.7% the industrial nations will now resolve the debt diffi­ market share in 1970 to just 3.4%. Even for the indus­ culty. Recovery will help greatly, but it will not be suf­ tries in which the developing countries have a clear ficient. competitive advantage, their share is still very low. In ""I have to admit, in passing, that by talking like this food it is a mere 3.7%, in wood it is only 3.6% and in I am in danger of pushing another myth that there is a THE BANK·S WORLD/SEPTEMBER 1983 11 generalized Third World debt crisis. There is not. Most projects are higher than those attained from bilateral developing nations have maintained excellent debt-ser­ aid. This is due to the broad factors I have just men­ · t· vicing records, even through these stormy times. One tioned, as well as the fact that the multilateral institu­ must remember that 60% of the total Third World debt tions tend to have more staff resources to appraise and is held by only eight nations. There are country-specific then supervise projects. debt-servicing problems, some of them very serious, "I might add here that it is upsetting to hear so often which have to be managed on a country-by-country that ill-informed people talk of so many developing na­ basis. tions as ones where foreign capital is merely squan­ "And naturally myths abound in the area of aid. Too dered. The rates of return to investors are generally often one hears politicians suggest that bilateral aid is high in the Third World and often higher than in the more effective than multilateral aid. The fact is that industrial nations. To be sure, funds are wasted now the two types of aid serve very different purposes and and again, and to be sure there are situations where need to be evaluated by distinctly different yardsticks. corruption is widespread. Such charges, however, can First, the targets of these forms of aid are not always be applied to all countries, not just poorer ones. But the same. Despite publicity now and again about bilat­ the record of investment returns in developing coun­ eral aid helping the world's poorest peoples, the fact is tries is a lot better than many myths have made so that the great bulk of bilateral aid goes to the middle­ many people believe. " income nations and not to the poorest. IDA is the larg­ est multilateral aid institution, and in 1982 fully 90% Very Tough Standards of its resources went to such countries. By contrast, in "The World Bank, for example, just does not make 1980 just 34% of total bilateral aid went to the very an IBRD loan or an IDA credit without determining poorest countries. " that there is an excellent prospect of at least a 10% rate of return. We have audited our completed projects by Securing Business Contracts very tough standards and found that average rates of "Bilateral aid from industrial countries is provided return have been more than 17%-even in the very for a variety of reasons, including foreign and defense poorest nations. policy considerations and the securing of business con­ "The slump in world trade, the stagnation in aid, the tracts. Such motivations, legitimate as they are, often severe debt crisis, which, by the way, has made many reduce the ability of donors to ensure, by insisting on banks exceptionally cautious about extending new performance covenants, that their aid funds yield high Third World loans and so aggravated the capital flows dividends from the projects in which the funds are in­ problem, all these factors lie at the heart of current in­ vested. Multilateral institutions are free of such foreign ternational economic difficulties. Their resolution can­ policy, defense and commercial considerations and can not be secured by quick fixes, by hoping for miracles, therefore place more emphasis on ensuring higher proj­ or by vast international meetings of the world's politi­ ect investment rates of return. Our own studies suggest cal leaders where the details of the issues and the dif­ that the actual rates of return on multilateral assisted ferences between nations tend to be glossed over." II 'Opportunities for Coordination and Co-financing' Teruyuki Ohuchi eruyuki Ohuchi. the Bank's Vice President~ T Co-financing, discussed "The World Bank and the Private Banking Sector: Opportunities for Coordination "I think we are all agreed that open and expanding trade has been crucial to the rapid growth and struc­ tural transformation that many developing countries and Co-financing" at the Joint I MF-World Bank Con­ have achieved over the last generation. For the devel­ ference for International Bankers held in Washington, oping countries, to revive their economies which have D.C., last month. Here are excerpts from his remarks: been severely battered by the global recession, expan­ 12 THE BANK'S WORLD/SEPTEMBER 1983 sion of exports is very important. But it is equally clear to the needs of both the borrowers and the private sec­ that improved export revenues cannot alone satisfy the tor co-lenders. For the borrowers, the formal link did developing countries' external resource requirements. not result in a sufficient improvement in terms International capital flows to these countries are also particularly in respect of lengthened maturities. For the equally important, whether they be in the form of pri­ co-lenders, the degree of comfort was limited. vate lending, direct foreign investment, official lending "We therefore perceived the need to open up a wider or official development assistance. range of co-financing options: to extend but not replace '"Net commercial bank lending to the developing those already available in the earlier forms of co­ countries is falling. July's figures from the Bank for In­ financing, and to encourage commercial banks to par­ ternational Settlements show that the reporting banks' ticipate in a greater degree in World Bank project total claims on their developing country borrowers had co-financing. At one end of the spectrum there will risen by $22.6 billion in the second half of 1982. But continue to be informal parallel loan operations, but at the claims had risen by over $30 billion in the first half the other there will now be joint lending operations in of '82, and by over $45 billion in the second half of which The World Bank will participate with a share in 1981. The trend is clear enough. Some recent restruc­ a commercially syndicated parallel loan. The widened turing of commercial debt has eased repayment prob­ range of options will thus cater for varying market lems. But net lending is"likely to diminish substantially conditions and differences in the standing of different this year. borrowers. These options are available now for partici­ "Most developing countries could-and should-do pation by commercial banks, and they will also be ex­ more to attract direct foreign investment. But accelerat­ tended to institutional investors in the private sec­ ing direct foreign investment will take time, and net di­ tor-principally pension and insurance funds." rect foreign investment was only a third of net private Supplement, Not Supplant lending in 1980. So while direct foreign investment can supplement borrowing, it cannot possibly grow fast "The new trial program will thus supplement but enough to make up for the present disruption in com­ not supplant The World Bank's present methods for mercial lending." co-financing with the private sector. It will, we hope, achieve two important objectives: Stable Rates of Interest '"First, to make additional funds available to devel­ oping countries for high priority investments in proj­ '"Official nonconcessional lending ought to be ex­ ects deemed suitable for World Bank lending, and pro­ panded more quickly in the '80s. This would help off­ vide access to funds not otherwise available. set the slowdown in commercial lending; and since of­ "Second, to encourage a lengthening of maturities ficial lending is long term at relatively stable rates of and grace periods offered by commercial lenders and interest, official lending helps to stabilize the debt pay­ so ensure a better match between the amortization of a ments of borrowing countries. loan, the project, and the borrower's capacity to repay. ··Clearly there is a need for increased flows of both "The trial program will involve some 15 to 20 lend­ bilateral and multilateral assistance. Budgetary restric­ ing operations and a World Bank participation of $500 tions have kept the flow of official bilateral assistance million designed to leverage some $2 billion in co­ at disappointing levels over the past years. And, para­ financing by commercial banks. Its implementation doxically, despite the desperate need for this type of as­ will be governed by the size, number and timing of sistance in the poorest ,countries, only a third of total suitable current and future co-financing opportunities. aid goes to them. Surely this calls for a reordering of "Three different co-financing instruments will be priorities. tested in the trial program, all involving The World "The World Bank, with its focus on longer-term eco­ Bank in taking a direct participation or accepting a nomic development, complements the IMFs role re­ contingent commitment in a commercially syndicated garding short- to medium-term adjustments. Since the parallel loan. Third World debt problem will not officially be re­ "One approach is a direct financial participation by solved without a recovery of Third World develop­ the Bank in the later maturities of a parallel commer­ ment, the Bank's role is urgent and vital to the solution cial loan. Commercial banks will make a loan, and The of the problem. World Bank will take a participation of between 10% "The Bank's intermediation role is rooted in part in and 25%. our co-financing program. In January of this year, the .. A second approach is for The World Bank to guar­ Bank announced a trial program of new instruments antee the later maturities of a loan made by commer­ which will allow the Bank to associate more closely cial banks, instead of itself directly funding the later ..t with commercial banks in co-financing. maturities. The existence of this World Bank guarantee "The results so far achieved are modest in relation will provide an incentive for the co-lenders to extend THE BANK'S WORLD/SEPTEMBER 1983 13 their loan for a significantly longer period than they of Hungary for the Agricultural Mechanization Devel­ would otherwise be willing to agree. opment project and the Industrial Energy Diversifica­ "Under the third option, The World Bank will take a tion and Conservation project. The Thailand loan is to r contingent participation in the final maturity of a com­ the Telephone Organization of Thailand for the third mercialloan designed with a fixed level of combined and fourth telecommunication projects. Both of these installments of floating interest and variable principal projects have been granted previous 'A' loans. The pur­ repayments. If the interest rate should rise above its pose of the proposed 'B' loans is to finance part of the initial rate, the amortization of the loan would not be gap between the total project cost and the amount fi­ completed on the original schedule because repayments nanced or to be financed by the Bank 'A' loans. of principal will be smaller than originally anticipated. "The original purpose of the new instrument, namely Under this arrangement, The World Bank will accept, additionality of funds and improvement of terms and subject to an agreed ceiling, an obligation to finance conditions, has been well achieved in the two projects the final repayment, if necessary, or if the commercial which we asked the Board to consider. The maturity of banks do not themselves agree to finance any balance the last private club loan obtained by the Hungarian of principal outstanding at final maturity. Government in April this year was only three years. "These, then, are the three options under the new co­ The proposed loans are for substantially longer maturi­ financing program. The decision for The World Bank ties of eight years for the dollar tranche and nine years to participate in a commercially syndicated parallel for the yen tranche, arranged in a much shorter period loan will be taken by the borrower and the Bank in the of time, and they will be syndicated to a much wider context of overall dialogues with interested banks. The market. In the case of Thailand, the proposed l6.5-year borrower and the Bank together will decide on the par­ maturity represents a substantially longer period than ticular part of the commercial banking sector to be Thailand could obtain from the market. In both cases, tapped as part of a negotiated approach to the market. the borrowers consider, and we concur, that the pro­ Probably two or three banks would be approached by posals represent the best terms and conditions which the borrower and The World Bank for preliminary dis­ can be achieved in the current market situation. This cussions in the light of the borrower's overall market was possible mainly because of the presence of the strategy and the marketing objectives of the operation." Bank as a co-lender in the 'B' loans." Mandate to Organize, Negotiate Loan Asked for 'Green Light' "If these preliminary discussions with selected banks "We asked the Board of Directors for the 'green on the structuring of such an operation show a positive light' to go ahead with negotiations with the private result, an invitation to submit offers will be extended banks, and this they gave us. In the negotiations, the to the bank or banks concerned by the borrower with loan agreements will include an agreed protection for the concurrence of The World Bank. These offers will co-lenders. The interest will be priced at a negotiated be reviewed and evaluated by the borrower and The spread over the LIBOR (London Inter-Bank Offered World Bank, and the borrower will award a mandate to Rate) or U.S. prime for the dollar portion. The yen organize and negotiate the loan. If, however, the indi­ tranche will have a fixed rate and floating rate tranches cations are that no advantage to borrowers can be on a 50/50 basis. Both will be priced at a negotiated achieved, then the operation would not be pursued, al­ spread over the long-term prime rate in Japan. The though the earlier forms of parallel co-financing ar­ Bank's participation is planned to be made only under rangements would still be available to the borrower the floating interest tranche. Disbursement and pro­ and the co-lenders. curement procedures will be in compliance with the "The World Bank refers to this new co-financing in­ general principles of the Bank. strument as a 'B' loan, distinguishing it from the "Since the Bank's Board approved the new Bank co­ Bank's traditional loan which we now designate an 'A' financing instruments last January, the staff have been loan. working hard to identify and build up an initial pipe­ "On July 28 of this year, we placed before the Bank's line of suitable 'B' loans. It is very encouraging for us Board of Executive Directors the first two proposals for that a keen interest in and widespread support for the co-financing operation under the new 'B' loan instru­ new scheme have been indicated by the private finan­ ment. One is for Hungary in the amount of US$272 cial circles of all industrial countries and by many bor­ million equivalent, and the other is for Thailand in the rowing governments. Central banks and governments amount of US$34 million equivalent. The former con­ of some industrial countries have taken positive action sists of a Eurodollar tranche in the amount of US$200 to support this new instrument in overseeing private million and a yen tranche in the amount of US$72 banks under their jurisdiction. Projects in several re­ million equivalent, while the Thailand operation is in gions of the developing world are now being studied by yen only. The Hungarian loan is to the National Bank us as possible future co-financing cases." III 14 THE BANK'S WORLD/SEPTEMBER 1983 Staff Principles, Appeals Processes Are Related A Family of Personn I Actions T he Personnel and Administra­ tion complex has taken a num­ ber of initiatives in the past few Corporation-Board, management and staff-has been involved in es­ tablishing this family of actions. the Bank set up to determine for­ mally and definitively whether rights and obligations of both par­ years, and there are more to come. "We have worked through the ties in the employment relationship But too often staff are not fully management chain as well as have been upheld. "The Tribunal aware how some of the actions re­ through the Staff Association and, gives us the practical machinery late to each other, says PA Vice of course, the functional depart­ specifically designed for the settle­ President Martijn 1.W.M. J>aijmans. ments, principally Compensation, ment of disputes in staff matters, In an interview with The Bank's Legal, Personnel, where the staff thus ensuring fair hearing and due World, Mr. Paijmans says that work is being done," Mr. Paijmans process in cases where other steps there are so many personnel ad­ says. "These procedures ensure are inadequate," explains Mr. ministration projects going on that Paijmans. some people in the Bank and IFC may be confused. "A major con­ Easily Accessible cern is to understand the logic be­ The Appeals Committee, hind the changes and the critical initiated in 1976, is a relatively linkages necessary to develop effec­ simple, easily accessible and "unin­ tive personnel management and timidating" recourse for grievance administrative policies, procedures resolution beyond the administra­ and standards in the institutions," ti ve review, while the Ombudsman, Mr. Paijmans says. created in 1981, allows informal "That doesn't necessarily mean mediation in the early stages of everything is interlinked. But a 'It provides the grievance development. number of activities are. And when The Principles of Staff Employ­ they are interlinked, we have, what essential support ment provide the Bank and IFC I call, a family or system." structure for a with bas, ic employment regulations, including the rights of the staff and Trusting Environment trusting work the institution in a dispute. "It is, "One of our families is now well environment. ' in effect, a commitment from man­ established. It provides the essen­ agement to staff that they will be tial support structure for a trusting -Paijmans treated fairly," Mr. Paijmans adds. work environment, and basically Perhaps the least visible element consists of five elements-the Ad­ concerns the handling of personnel ministrative Tribunal, the Appeals information. "Personnel Informa­ Committee, the Ombudsman, Prin­ tion Policy (PIP) provides guide­ ciples of Staff Employment, and staff that they are respected, and lines for staff in gaining access to Personnel Information Policy will be treated fairly and not arbi­ their personnel files," the Vice (PIP). These major elements have trarily. What we have, I believe, President says. "It was two years been supplemented by other ac­ surpasses what any other interna­ ago that it was made obligatory for tions, such as the Attitude Survey, tional organization has estab­ managers to show staff their perfor­ which helps to give us confidence lished." mance evaluation report, and staff in our work environment by, Since staff in the Bank and IFC members now have full access to among other things, providing for are not protected by outside labor information filed since the begin­ communication from staff to man­ relations pacts, the Administrative ning of this year." ..l • agement." Tribunal was created in 1980. It is How is a dispute handled? Every segment of the Bank and a legal recourse of last resort which "Of course, we hope staff and THE BANK'S WORLD/SEPTEMBER 1983 15 managers will solve problems be­ the core of the Bank's and IFC's re­ addressing the issue of upward tween themselves. Should this not lationship with staff, and the fact communication and the working be possible, a staff member can that staff know they can go to a environment. The first survey · l' seek assistance from the Ombuds­ third party if mistakes are made in showed widespread staff concern man as a mediator. The office was the management of people demon­ about how grievances and appeals established to help reconcile dis­ strates the institutions' concern. are handled, and we have tried to putes as early as possible before "'A trusting environment is respond by intensifying our efforts matters become controversial and something that certainly existed to finalize our recourse family." real problems. The Ombudsman is when the Bank was very small. But appointed by the President of the when it became larger and when Element of Redundancy? Bank and IFC after consultation rules had to be introduced during Is there an element of redun­ with the staff. In its first two years, the 1960s and 1970s, that environ­ dancy, and hence overkill, in the this function has proved to be of ment-where everybody knew ev­ Bank's recourse system? extraordinary value. A recent sur­ erybody-gradually eroded," says "I don't think there is as long as vey of people who used this service Mr. Paijmans. staff feel the system serves them showed a high degree of satisfac­ A willingness to listen cemented well," says Mr. Paijmans. "'We are tion." part of the trust in the past, and to­ a very special institution. There are If this remedy does not solve the day it is being reinforced. "The people here from all over the problem, the staff member may Principles of Staff Employment, re­ world, each with his or her own then turn to the Appeals Commit­ tee which is comprised of Bank/ IFC coUeagues. "'The Committee is a responsive process, and manage­ 'Management is listening and ment takes its recommendations inviting staff to talk.' -Paijmans very seriously," Mr. Paijmans says. The Committee reports to Mr. Paijmans. "'I have accepted every recommendation put forward," he cently adopted, is another basic ele­ views of how the institution should says. "'The quality of deliberations ment in this entire structure. The treat them. I think it's vital to take and advice has been high." Since legal position of the staff was not into account their concerns and its inception the group has handled clearly defined and needed to be needs." about 50 cases. set out as a matter of fairness to When he was asked if he felt it is The Administrative Tribunal has the staff," Mr. Paijmans says. taking the Bank a great deal of heard 12 cases since its creation, "While some documentation was time to develop related policies like "'accepting management's basic de­ available, what we needed was a the recourse system, Mr. Paijmans cisions with some modifications constitution on employment mat­ says that the time spent is well deemed necessary. The Tribunal's ters, defining broad policies for the worth it. "'When an institution upholding these decisions, I think, organizations and the management grows as we did, the lines of com­ gives us confidence in our ability of the institutions. In the fall of munication get stretched and some­ to apply our internal policies and 1982 the most extensive consulta­ times break. For some years we rules fairly," Mr. Paijmans adds. tive process ever undertaken in our were so busy growing and doing "'The Tribunal has a membership institutions began. We found that our job in our member countries of high caliber," he says. "'It is although the basic thrust of these that we didn't pay as much atten­ comprised of seven judges, nation­ Principles was acceptable, the way tion as we should have to our in­ als of our member states. It is a in which they were worded was ternal needs. The institution can totally independent judiciary not. As a result, the text was re­ only fulfill its function on the out­ uniquely focused on the Bank and drafted so that.it was acceptable to side if it is strong on the inside." Corporation. all parties. This process has now Mr. Paijmans notes that ele­ "'Staff are needed to serve as vol­ been completed, leaving us with ments of the various families being untary counselors for the appellants the task to formulate our Rules, formulated take time to develop in need of advice in preparing their which we think will take at least 18 because the Bank and IFC believe cases before both the Tribunal and months. strongly in consulting staff. "Many the Appeals Committee. They are "Management is listening and in­ of them want a chance to be also needed to serve on the Ap­ viting staff to talk. Witness the At­ heard," the Vice President adds. peals Committee." titude Survey which also has its "Discourse will continue to be He adds that trust should be at place in the structure of activities encouraged." II 16 THE BANK'S WORLD/SEPTEMBER 1983 Around Attitude Survey Set the confusion that occurred in tant at several levels," explains Mr. some areas of the organization last Roberts. ··First, it is an opportunity for December time. for staff to give their views to man­ "The Bank and IFC are gearing up Last year, there was some confu­ agement about their satisfaction for the second Attitude Survey to sion regarding ··next-in-line man­ with their job and the institution be conducted in December, and we agement group." Now, this category and to make suggestions for im­ hope that staff participation will be will be clarified by focusing ques­ provement. Second, the Survey as good as the 85% achieved last tions on ··your manager's man­ provides individual managers with time," says Lee Roberts, Program ager." feedback on aspects of importance Manager of Personnel Research in Additional management reports to work group effectiveness. Fi­ the Personnel Management Depart­ will be provided following the Sur­ nally, the Survey provides a rich ment. vey to help senior staff in their source of information which senior ··The first Survey helped stimu­ analysis of the results. management can use to analyze late improved communication be­ The questionnaire will consist of overall institutional problems and tween staff and their managers. It two types of items. The first is a bring about improvements." also drew attention to issues affect­ set of unchanged core questions to Martijn J.W.M. Paijmans, Vice ing staff effectiveness and work life, be used as the basis for establishing President, Personnel and Adminis­ and led to discussions on what the indexes for Survey I. These will tration, adds, ··Senior management constructive steps could be taken," provide comparisons of progress is strongly committed to the survey says Mr. Roberts. from one survey to the next. The process, but its success depends ul­ ··Some issues that emerged in the second type will focus on current timately on the willingness of staff first Survey-such as staff concern issues and take into account sug­ to participate and to help realize its over aspects of the climate of the gestions recei ved from managers potential benefits." 11 institution and career develop­ and staff. ment-are being addressed by se­ Mr. Roberts also notes that the nior management and by improve­ new Survey requests more demo­ ments in policies and programs graphic information from staff. Fire Wardens: First affecting staff. More work is ··The data will be used for diagnos­ Line of Defense planned in the area of career devel­ tic purposes only," he says. ··With­ When the concept of having fire opment based on the findings from out this information," he adds, ··we wardens in the Bank became reality the next Survey. cannot adequately produce plans about 18 months ago, Lois Leach "The second Survey will provide for improvement in areas such as decided to become one. a useful basis for comparison with career development." ··1 believe I ought to be doing the first one and help management Specifically, staff will be asked rather than sitting back and grip­ determine just what areas of staff how long they've worked in the concern have been improved." Bank, their age, job category, etc. There will be some changes in ··Response to these items will not survey procedures, Mr. Roberts be fed back to the work group notes. In the first Survey, work level," Mr. Roberts assures staff. unit reports were produced only ··Moreover, all data will be proc­ where there were eight or more re­ essed by an external organization, spondents. In the new Survey, this and individual anonymity will in will be reduced to a minimum of no way be compromised." six so that smaller groups will be December 1 is Survey Day for able to receive reports without staff at Headquarters, and the ques­ compromising the confidentiality tionnaires will be distributed a few of individual responses. Manage­ weeks earlier to field offices. Spe­ ro ment in each Vice Presidential cial arrangements will be made for "0 ro I Unit is reviewing the work group staff who are traveling or on leave ~ boundaries and work group manag­ to complete the questionnaire on 0 >­ >- ers for survey purposes, and will their return and for staff working D E .,t 0 communicate this information to in field offices. .t: a.. staff before Survey Day to avoid ··The Attitude Survey is impor­ Lois Leach, Fire Warden. THE BANK'S WORLD/SEPTEMBER 1983 17 ing," says the Administrative Assis­ Annual Meetings Agenda tant in the Energy Division, West­ ern Africa Projects. She is one of Five-thousand participants are expected at this approximately 250 fire wardens in year's Annual Meetings of the Boards of Governors the Bank, and there is a need for of The World Bank, IFC and the International Mon­ another 250, according to Frank B. etary Fund. The Meetings start Tuesday, September (Mike) Kaye of the Security Divi­ 27, and end Friday, September 30, at the Sheraton sion. The reason for this additional Washington Hotel. His Excellency Miguel Boyer, number is to have enough people Minister of Economy, Finance and Commerce of covering for those on leave and Spain, is Chairman. mission. Miguel Boyer Here is the agenda: ""It only takes about 30 minutes Tuesday, September 27 to train someone to handle this job," says Mr. Kaye, ""but the work 10:00 a.m. - Opening Ceremonies: performed is critical." Address by Miguel Boyer There are about 20 to 25 small Annual Address by A.W. Clausen fires each year in the Bank, he says, Annual Address by Jacques de Larosiere and while they have, for the most part, been extinguished easily, the 3:00 p.m. - Annual Discussions possibility is always there for a Wednesday, September 28 larger and more severe conflagra­ 9:30 a.m. - Annual Discussions tion. Ms. Leach's interest in be­ 3:00 p.m. - Annual Discussions coming a fire warden, for instance, stemmed from her service on the Thursday, September 29 Staff Association's Security Sub­ 9:30 a.m. - Annual Discussions committee several years ago where 3:00 p.m. - International Centre for Settlement she learned how ill-equipped the of Investment Disputes Administrative Bank was then to evacuate a large Council number of people. 5:30 p.m. - Joint Procedures Committee ""The fire warden program and other security measures we've Friday, September 30 taken," says Mr. Kaye, ""help us 9:30 a.m. - Annual Discussions deal effectively with evacuation. Joint Procedures Committee Reports Among the things fire wardens are Comments by Heads of Organizations responsible for is helping people evacuate a building quickly after a Adjournment fire alarm is sounded. The Annual Meetings will be preceded by related meetings of Ministers ""With Fire Prevention Week and their Deputies starting Wednesday, September 21. This year most of coming up the week of October 9, these ancillary meetings will be in the Meeting Hall of the IMF building there is added focus on the impor­ and other rooms in the Bank, to be announced. tance of the work fire wardens per­ The Interim Committee will meet Sunday, September 25, and the Devel­ form. If you would like to be a opment Committee Monday, September 26. member of this vital team, contact Mr. Clausen's Annual Address will be shown on videotape Tuesday, Sep­ me on Ext. 61178." III tember 27, in the Eugene Black Auditorium (C-1114) at 1:30 p.m., 2:30 p.m., 3:30 p.m. and 4:30 p.m. All staff are invited. • Library Annual Report Correction the Appeals Committee. Pilar San The caption under the photo on Jose, who was listed, is not a mem­ The Joint Library of the Bank and page 5 of the August issue of The ber. Hilda Ochoa, who was not the Fund has published its latest Bank's World contained an error. It listed, is a member. We regret the Annual Report. For a copy, contact listed the names of the members of error. III the Library on Ext. 57046. III 18 THE BANK'S WORLD/SEPTEMBER 1983 You Can Donate Blood cunty Guard Gets is Ph.D. for Research by Patricia Nepomuceno The Red Cross on a daily basis faces the formidable task of supply­ ing 61 Washington area hospitals with more than 800 units of blood, and since 1978 The World Bank/ L t.offiong John Offiong would probably in their job. The more confidence Bank staff will also have in them." "I always had this burning desire Red Cross blood program has lent protest if you to get as much education as I a helping hand. called him "Dr. could," Lt. Offiong says. He ar­ From 1978 to 1982, Bank and ~ Offiong." More rived in the United States in 1971 ~ IFC employees donated 1,200 units o c likely, he will with only a year of junior college in aJ and in July 1982, when the Fund « call himself Nigeria. He lost no time enrolling lJ and Bank jointly sponsored the .9 '"Leftenant for a B.A. in Political Science at o bloodmobile, a record 378 units .J::. c.. Offiong." Howard Unversity, completing it were collected. Lt,Offiong As the super­ in 1975. "From there I went According to the Red Cross, 75% visor of the mid­ straight for a masters in Interna­ of World Bank staff members are night security shift in the Bank for tional Relations and Public Admin­ ineligible to donate blood for trans­ the fifth year, he has become a fa­ istration, finishing in 1977," he fusions primarily because of foreign miliar figure to late night and early says. "Then on to my doctorate, travel in malarial areas. morning people signing in and out starting in 1978 and graduating last The restrictions based on travel in the main lobby. What they don't May. are harsh but necessary, governed know and what they don't expect is "1 had a lot of help from some by the fear that a donor recently re­ that he is also a Ph.D. in Political friends in the Bank, especially Enzo turned from an area endemic for Science from Howard University, Grilli, once the head of the Com­ malaria may unwittingly transmit well versed in African Studies, In­ modities and Export Projections the disease through his donation. ternational Relations, Comparative Division," he says. His disserta­ This does not imply that staff Politics, and Public Administration tion: "The New International Eco­ who travel frequently are perma­ and Public Policy. nomic Order: Analysis of the nently ineligible to contribute. "1 told my supervisor, Capt. North-South Dialogue on the Issue Their donation, which is not suit­ Mooney, that this Ph.D. is not of Commodity Negotiations." able for patient transfusion, will be worth publicizing," he says. "My Lt. Offiong says his work in Se­ used instead in the development of degree does not have anything to curity in the Bank, starting 10 years improved techniques for blood do with the security area. It's a ago, practically took care of most processi ng and storage, as well as personal thing." Besides, he says, of the cost of his education. studies of the physiology of various there are others like him in the se­ "1 was a full-time student all the blood components. curity force who are pursuing grad­ time," he says, "and I couldn't Dr. Fred Darr, Associate Director uate studies and some who came really count on the occasional fi­ of the Washington Region Red before him and have gone on to nancial assistance at the university Cross Blood Service, says that in bigger things. or the support from home which I response to a recent ABC television Capt. Gerald Mooney, supervisor had in the beginning." news program dealing with AIDS of the Bank's 150 security officers, Being on the II :30 p.m. to 8 (Acquired Immune Deficiency Syn­ feels that Lt. Offiong's latest a.m. shift in the Bank, odd hours drome) and the nation's blood sup­ achievement is nothing to sneeze for most people, provided the flexi­ ply, '"donors began calling express­ at. '"It's inspirational," he says. bility he needed in his academic ing the unwarranted fear of devel­ ··It's a morale booster." schedule. "1 sleep for five hours, oping AIDS by donating blood. He is realistic enough to be pre­ from 10 a.m. to 3 p.m.," he says, Our staff is busy reassuring donors pared to lose some of his officers "and occasionally have an hour's that this is clearly no cause for once they've become overqualified, sleep right before I go on duty." concern. " but he does get to keep those who At present, Lt. Offiong does not Information regarding blood do­ are not quite ready to go back to have any grandiose plans. "I'm just nations is available from the Medi­ their countries.•• And the more in­ relaxing for a while after the ten­ cal Department. III telligent and educated they are," sion of these past years," he says, Capt. Mooney says, "the more in­ "but believe it or not, sometimes I terested and professional they are miss going to school." III THE BANK'S WORLD/SEPTEMBER 1983 19 • • r (Editor's Note: This is the second of two advertisements that provides staff and retirees with information on the Bank's Medical Insurance Plan (MIP).) ran 9 1. Escalating Medical Costs 'Hands-on' In the R Building Mean recently opened training center Highe'r Contributions for You A in the R building is a result of the upgrading of the Bank's train­ ing efforts. "In FY83, about 20,000 work­ days were spent in training," says Medical, dental, and hospital costs continue to far outstrip salary and Erik B. Eriksen, Chief of the Per­ pensioners' increases. The MIP contains various features to assist sonnel Management Department's staff in keeping their own control over costs and care. Consider these Staff Training Division. "For this guidelines: year, we project between 26,000 and 28,000 workdays." • Ask about Outpatient Surgery and Treatment. The MIP will cover minor The growing importance placed surgery and treatment performed in the physician's or dentist's office, as well on training to enable staff to meet as in the outpatient department of a hospital or clinic. its commitments to Bank member • Have Laboratory Tests Done Before Entering a Hospital. Spare nations was a major reason for yourself, as well as the MIP, a day or two of hospital charges. You may also leasing the new facilities. The train­ save your time and that of your family by not being admitted to the hospital ing center features word processing until it is necessary. Check with your hospitial and physician beforehand. equipment for "hands-on" office • Compare Prescription Drug Prices. Consider purchasing medication in technology training, as well as its less expensive generic form. Ask your physician if there are alternat~ ves to space devoted to management, pro­ your prescription. fessional/technical and other train­ • Discuss Fees in Advance of Treatment. Medical and dental services ing programs. III should be purchased as prudently as any major item. If a proposed fee seems h'igh, find out what other physicians and dentists in the area are charging for Photos by Michele lannacci the same services. By conferring with the Claims Office, they will tell you if the proposed charge exceeds their guidelines . • Compare Quality of Care. The MIP covers both the more expensive and the less expensive providers in the categories listed below. Consider less expensive care if it is satisfactory and covered by the Plan. Psychiatrists, licensed psychologists, and licensed clinical psychiatric social workers; Registered and licensed practical nurses; Obstetricians and Registered Nurse Mi,dwives for deliveries; Dentists and hygienists for prophylaxis (teeth cleaning); and Hospitals and centers for ambulatory surgery. This listing of features in the MIP is to remind you of.the broad scope of the plan and provides examples of things for you to consider to help keep costs and your contributions down. For more information, contact the Bank's Insurance Office in the Compensation Department (Room 1­ 3-148, Ext. 691'72) or our insurer, New York Life (Room N-105, Ext. 61473). Wang instructor Janet Bernhards (left) helps Remedios De Ausen master the intricacies of I word processing, 20 THE BANK 'S WORLD/SEPTEMBER 1983 In the computer training- room, Carole Phillips enter keys in data. ~ Students during computer training class in the new R building training center. Paulette Wilmot of EMENA Projects operates one of the new training center's six Wang word processors . THE BANK 'S WORLD/SEPTEMBER 1983 21 Senior Staff Appointments New Staff Members DANIEL G. RITCHIE has been Bashir Ahmed Azizur Khan promoted to Assistant Director for Bangladesh Bangladesh Staff Asst./EDS/8/ 15 Sr. Economist/CPD/?/29 Policy Support in the Personnel Emmanuel Akpa Kathie Krumm Department. He succeeds Bo S. Ghana United States Widen who is undertaking a special Econom ist/WA2/9 / I Economist/CPD/9/ I assignment in the Medical Depart­ Sheila Amoakohene Victor C. Lavy ment before returning to the pri­ Ghana Israel Secretary / ASA/8/ 15 Economist/DRD/8/17 vate sector in his home country, Fatima Asp-Barreto Frances Lewis Sweden. Mr. Ritchie, a U.S. United Kingdom United States national, joined the Bank in 1968 Secretary/WAP/8/8 Secretary/EMP/8/22 through the Young Professionals Program. In 1970, he Phyllis Austin Sachie Makishi served as Loan Officer in the EMENA Department. In United States Japan Secretary / ADM/8/29 Research Asst./INV /8/15 1975, he was appointed Deputy Executive Secretary of Thomas Bond Darius Mans CGIAR, and in 1980 took up his current position as United States United States Chief of the Agricultural Division III in the EMENA Expense Clerk/ACT /8/8 Young Professional/PMD/9/2 Projects Department. Joseph W.B. Bredie Jorge Eduardo Martins Netherlands Bolivia Technical Education Specialist/ Investment Officer/CL2/8/1 KARL STICHENWIRTH, an Aus­ ASP/8/29 Soraya Massoud trian national, has been promoted Lorelei Buntua Afghanistan to Projects Policy Adviser, Projects Philippines Secretary/OPD/8/29 Advisory Staff. He replaces Abra­ Accounting Asst./ACT/9/1 Patchechole Ojo ham Raizen who is retiring. Mr. Chantal Camalon United States France Staff Assistant/EDS/8/8 Stichenwirth joined the Public Util­ Secretary/EAP/8/15 Cecile Ramsay ities Projects Department in 1969 Donald Costello Jamaica as a Financial Analyst. He trans­ Canada Young ProfessionaI/PMD/8/29 ferred to the Public Utilities Divi­ Section Chief/IRMD/9/1 Paolo Rocca sion, Asia Projects Department, in Kim Courtney Italy United States Executive Director's Asst./ 1972, and later to the East Asia and Pacific Projects Word Processor/FOD/8/22 EDS/9/1 Department where he became Senior Financial Analyst Vannee Dalla Miryam Salinas in 1976. From 1978 to 1982, Mr. Stichenwirth was Thailand Peru Deputy Division Chief, Energy and Water Supply Divi­ Secretary/LCP/8/8 Secretary/CCMD/8/22 sion, South Asia Projects Department. Corinne de Jesus Catherine Seibert France United States Secretary /WAP/8/22 Operations Asst./EM2/9/ 1 Retirees Yves B. de Rosee Cynthia Shed Belgium United States Prog. & Plan. Officer/CPBA/8/15 Reports Clerk/ A DM/8/22 Loan Dommen Griselda Sheehy United States Mexico Secretary/EA2/8/22 Secretary/LCP/8/29 Mete Durdag Pamela Silkenat Turkey Canada Economist/EA 1/9/ I Counsel/LEG/8/8 Antonio Estache Lida Skrzypczak Belgium United States S. ENAR OHLUND PAUL DANQUAH Research Asst./WA 1/8/ 15 Secretary/EDS/8/8 July 31 August 26 Abderrezzak Ferroukhi George Wigh twick Algeria Canada Sr. Energy Planner/EGY/8/8 Financial Analyst/WAF/8/15 Jamal Fuad Alan Winters Iraq United Kingdom Agriculturist/EMP/8/17 Economist/EPD/8/22 Judit Gergely Hungary Young Professional/YPP/8/25 Kim Johnston United States MARY BROWN H. DAVID DAVIS Secretary/COM/8/29 August 31 August 31 22 THE BANK'S WORLD/SEPTEMBER 1983 If you have a comment about an sing-"finding" water-is based on trology might be viewed as superior article that has appeared in this a misconception of the nature of to the new ways of computer mod­ magazine, a Bank policy, or some subterranean water-that it occurs eling and commodities price fore­ interesting information you'd like in "streams" and thus the exact lo­ casting. Finally, extra sensory per­ to share, please let us know by cation of a well is critical. In fact, ception (ESP) might gradually be sending a letter to: The Editor, The ground water occurs under much of viewed as a necessary skill for Bank's World, Room D-839. The the world's land, and it is the depth Loan Officers. Or could it be that editor reserves the right to make to the water table, the transmissi­ human interest cover stories are changes because ofspace limita­ bility of the aquifer (the ease of ex­ largely ornithological, i.e., for the tions and style, and all letters must tracting the water), the rate of aqui­ birds? be signed, though names will be fer recharge and the quality of the Robert Picciotto withheld upon request. water (especially its salinity) which EMENA-Projects Department * * * determines whether it can be eco­ I was frankly appalled at your Au­ nomically exploited. * * * gust cover story ("Dowsing: An Perhaps the article could have Old Way May Be Better"). Not mentioned one of the alternative I'd like to make a suggestion: only was the subject matter, in my names for a dowser, which is "wa­ Couldn't we have more appealing view, inappropriate for an official ter witch." Will we now see an arti­ names for the Bank's four dining World Bank publication but the cle on "astrology in development?" rooms? Not only are their present treatment was decidedly lopsided. Peter W. Whitford names-D, E, H, and I Building Though the article did contain a Population, Health and Dining Room-prosaic and unin­ telling quotation from the prestigi­ Nutrition Department spiring, but they also invite error ous U.S. Geological Survey-that on the part of the diner. How dowsing is a "curious superstition" * * * many of us have wondered if we or and "practically useless" -the re­ Beyond its implications for ground­ our guests have heard "0" or "E," mainder was highly supportive of water development projects, Thierry or vice versa? Mr. Bird's position. In the interest Sagnier's article on "dowsing" If we were to draw on the enor­ of fairness, rebuttals from qualified opens up all kinds of exciting pos­ mous pool of ideas no doubt wait­ hydrologists or hydrogeologists sibilities for the Bank. For exam­ ing to be tapped right here in the should have been included. Was ple, Bank forestry specialists might Bank, we could come up with some the opinion of the Bank's Science be required to learn the language of original names, perhaps something and Technology Adviser sought? trees. Furthermore, Mr. Bird's con­ with international flavor. There is not a shred of scientific cepts might be extrapolated to the Caroline Wilson proof that dowsing is of any value. economic profession where the old Country Programs I Even the stated purpose of dow­ ways of crystal ball gazing and as­ East Africa Region New Vice Presidents Five new Vice Presidents have been appointed in the past few months. They are: IBRAHIM F.I. SHIHATA TERUYUKI OHUCHI JEAN-LOUP DHERSE HANS HITTMAIR D. JOSEPH WOOD .t ~ Vice President and Vice President, Co­ Vice President, Energy Vice President and Vice President, General Counsel Financing and Industry Controller (effective Financial Policy, November 1, 1983) Planning and Budgeting THE BANK'S WORLD/SEPTEMBER 1983 23 The purpose of this column is to sors. To do this requires, among step-by-step instructions. Richard answer questions of broad interest other things, a high degree of initia­ A. Calkins, Acting Chief, Perspnnel · r concerning The World Bank/IFC's tive and judgment, a thorough Management Operations Division, policies and procedures. Because of knowledge of relevant Bank poli­ Personnel Management Depart­ space limitations, only questions of cies and procedures, and the ability ment. wide interest can be published. If to work independently. you have such a question, send it to: For promotion to the G level, Question: When the Bank lowered Answer Line, The Bank's World, the staff assistant is expected to be the regular retirement age from 65 Room D-839. able to take on more complex as­ to 62, why was the early retirement signments which may be, initially, age kept at 55 and not reduced ac­ * * * cordingly? Now that the whole re­ "ill-defined"-making all necessary Question: In the World Bank's Per­ administrative arrangements for a tirement plan is under review, is the sonnel Manual (Ref. 4.08 of Departmental retreat, for example. possibility of lowering the age being 1/28/77 Annex B, page 5), it states While the management and other considered? that staff assistants being consid­ higher level staff of the Department Answer: When the Bank lowered ered for promotion to level G Staff will be responsible for the agenda its normal retirement age from 65 Assistant must have demonstrated of the retreat, the staff assistant to 62 in 1974, this change was in an ability "to independently handle plays a crucial support role by ap­ line with a general trend toward a variety of complex assignments plying his/her knowledge of Bank earlier mandatory retirement in a which are often ill-defined ..." Is it policies and procedures, and the number of public and private orga­ then a matter of World Bank policy necessary research work and logisti­ nizations in various countries. th~t (1) a staff assistant do the cal support, in making the retreat a However, age 55 was, and remains, thinking for a higher level staff success. The intent of the criteria, the most common age at which an member, and (2) if ill-defined in­ therefore, is not to imply that ill­ early retirement pension may be structions are acceptable, what does defined assignments per se are ac­ drawn. These provisions are again this say about our expectations of ceptable, but rather to recognize being reviewed in the on-going managers? that certain tasks need to be ex­ comprehensive study of the Staff Answer: Under current guide­ plored before they can be per­ Retirement Plan, but I think it un­ lines, a staff assistant provides ad­ formed . A G level staff assistant likely that any reduction in the ministrative, public relations and should have the knowledge and early retirement age will result. office support, as well as secretarial skills to carry out such tasks with­ R.A. Clarke, Director, Compensa­ support, to one or more supervi­ out being given a detailed set of tion Department. As we go to press... - - - - - - - - - -........- - ­ MEETING TOMORROW'S CHALLENGES: To meet the those of a short-term nature. The latter challenges that will occur in the next five will have functional responsibility for years and beyond, some changes have been managing the institutional planning and made in the Bank's Financial complex. resource allocation processes, thus These changes are aimed at strengthening shifting its focus to a broader review and institutional planning and resource analysis of Bankwide issues. allocation and control processes in the At the same time, the Financial com­ Bank. plex seeks to strengthen its retrospective Responsibility for administering and analysis capabilities by enhancing the coordinating this new Bankwide institu­ functions of the Vice President and Con­ tional planning process is being vested in troller in the area of financial monitoring a restructured Vice Presidency that will . and evaluation, and in the development and include financial policy, planning and provision of management information. budgeting. This Vice Presidency will Hans Hittmair will succeed Masaya consist of two departments: Financial Hattori as Vice President and Controller Policy and Analysis, and a refocused upon Mr. Hattori's retirement in late Planning and Budgeting Department. The October. former will continue to serve as the focal D. Joseph Wood was appointed Vice point for analytical work on Bank/IDA President, Financial Policy, Planning and financial policies and issues, primarily Budgeting, effective September 1. The Bank's World, Vol. 2, No. 9. Published monthly in Washington, D.C., by the Information and Public Affairs Department of The World Bank for all employees and retirees of The World Bank/International Finance Corporation. Alan Drattell, Editor; Thierry Sagnier, Assistant Editor; Bill Fraser, Designer.