59527 Investment Guarantee Scheme Would Minimize Investor Risks MIGA: A Fresh Proposal by Ellen Tillier T Investment guarantee agency ~e idea of creating a multilateral ing percentage of total financial flows to developing countries-about 15% against non-commercial risks for now. investors in the Third World has been For all these reasons, it's felt that explored by the Bank on several occa­ more efforts should be made to en­ sions since the 1960s, but it has not courage foreign private investment, materialized. Now-revived by A. W. especially as the attitudes of develop­ Clausen, President, and under the ing countries-their outlook and be­ guidance ofIbrahim F. I. Shihata, havior toward such investment-have Ibrahim F.I. Shihata Vice President and General Counsel­ much improved. Developing countries the idea has moved closer to reality. A have been issuing codes to encourage fresh proposal has been prepared that foreign investment and provide incen­ may finally give birth to the M ultila­ tives. The trends of the '50s and '60s teral Investment Guarantee Agency, toward nationalization and expropri­ to be known as MIGA. To learn more ation have almost, ifnot completely, about MIGA, The Bank's World inter­ disappeared, although investors' fears and their host countries. viewed Mr. Shihata. and doubts persist. Q. What makes MIGA different from Q. Mr. Shihata, can you explain why So, the needs are great; volume is previous proposals? the Bank is reviving the creation of such declining; and attitudes are favorable. A . It's different in at least four major an agency just now? These three factors make MIGA more ways. First, as I said, its purpose is not A. As is well known, the financial timely than at any previous time. only to insure political risks. In its needs of developing countries are per­ Q. What is the main purpose of broad concept, MIGA is an interna­ haps greater today than ever before. MIGA? tional agency concerned with improv­ At the same time, there is a noted A. Basically, it's to create a better ing the investment climate in develop­ decline in the flow of all types of ex­ investment climate worldwide, and in ing countries. ternal finance to them, either in abso­ developing countries, in particular, Secondly, its financial structure isn't lute terms or in growth rates. through insuring foreign investors limi ted to the so-called sponsorship Commercial loans to developing against political risks and through arrangement on which previous pro­ countries have witnessed the largest other means. These other means may posals were based where the Agency drop, from around $16 billion to a include research and information, acts as the agent of sponsoring mem­ negative $21 billion in just three providing policy advice, offering tech­ bers-those who sponsor an invest­ years-from 1981 to 1983. Official de­ nical assistance and other ways aimed ment for the purpose of guarantee velopment assistance flows are also at improving this climate. and ultimately bear the burden of the declining. Foreign private investments The purpose of the Agency is not guarantee. In the new proposal, the have decreased from about $16 billion solely to provide investment insur­ Agency will have its own capital and in 1981 to perhaps less than $10 billion ance. Insurance is the main instrument rest:rves. In addition, the Agency will in 1983. So, while needs are growing, of the Agency but will be used along accept to act as an agent for sponsor­ flows are declining. with other instruments to create a bet­ ing member countries. In other words, In recent years, foreign private in­ ter investment environment based on the new proposal opens two windows vestment has accounted for a declin­ mutual confiden~e between investors for the Agency: one based on its own COVER: Margaret Russo in action. Photo by Michele lannacci 2 THE BANK'S WORLD / NOVEMBER 1984 The main aim of MIGA is 'l o improve I.h e investment climate; -t must act as a confidence-building institution. capital and reserves; the other based have its own capital, most of which to classify itself, subject to the control on the sponsorship concept after the will remain callable. Only a small por­ of the Council. The proposal, as it Agency has reached the authorized tion would be paid in in advance. Ini­ stands, calls for equal votes between ceilings based on its own capital re­ tially, the Agency would have a share the two categories for a number of sources. capi tal of $1 billion and could become reasons. Thirdly, host countries playa more operational when subscriptions First, remember that the main aim significant role in the present propos­ reached $250 million. Every member of MIGA is to improve the investment al. They are not only members but country, including developing coun­ climate; it must act as a confidence­ shareholders. Of course, under any tries, would have to subscribe to at building institution. Therefore, it's im­ scheme of this type, host countries are least 50 shares before becoming a portant that both sides perceive it as the ultimate controllers of risk, a fact member. serving this common purpose and not which justifies their enhanced role. Reserves would be built up through the interest of one category over the The new proposal gives half of the the premiums paid in. In addition, the other's. total votes to host countries, which is second supplemental window, based Also, MIGA is not a donor agency a completely new feature. on sponsorship, would be funded by where financing usually controls vot­ Finally, the link between the Agen­ sponsoring member countries. But ing power. The Agency must be seen cy and the Bank is different because, whether MIGA acts on the basis of its as an instrument for creating the most in a formal sense, it is more limited capital or sponsorship, MIGA is in­ positive conditions for investment, than previously envisaged. tended ultimately to finance itself rather than as a financial intermedi­ Q. How would MIGA be linked to the through its own revenues. ary. Bank? Q. How would voting power be distrib­ Q. What kind of risks would MIGA A. Basically, in three ways. First, the uted? cover? President of the Bank would ex officio A. The proposal calls for two catego­ A. It would cover the three tradition­ be the Chairman of the Board. Sec­ ries of members: home countries and al types of non-commercial risks: ondly, the President of MIGA-who host countries, and, as I said, votes (1) the so-called transfer risk, which is would be appointed by the Board of would be allocated equally between the risk of converting local currencies MIGA-would be nominated by the the two. Approval of important deci­ into foreign currencies and transfer­ Chairman, i.e., by the President of the sions would require a special majority, ring them out of the host country; (2) Bank. Finally, it's possible that 60% of votes representing not less the so-called expropriation risk, MIGA may enter into a cooperative than 50% of SUbscriptions. which covers nationalization-the agreement with the Bank in order to In the process of negotiations, each taking over of property, and so forth; cut down its costs. country will be asked to classify itself. and (3) the so-called war risk, which So the legal link is the joint chair­ Then the Council of Governors of covers war, civil unrest and public manship, and the Chairman's power MIGA will issue a formal classifica­ violence that may affect the invest­ to nominate-not appoint, just nomi­ tion which will presumab'ly ratify the ment. nate-the President. But from a prac­ outcome of self-classification unless it In addition to these traditional tical point of view, the relationship finds it unacceptable. risks, the Agency would also be able could become much stronger through Q. You mean a classification between to cover any other political risk ifboth voluntary arrangements to be worked home and host countries? the investor and host country agree to out by the two agencies. A. Yes, because, as you know, in the coverage and if this is approved by Q. How would MIGA be funded? point of fact, many countries are the Board. But, it won't cover the risks A. The ultimate aim is for the Agency both- host and home countries of of currency depreciation and deva1 lua­ ~t . II to finance itself through its own reve­ foreign investments. But for voting tion, risks that exist before the insur­ nues. As I mentioned, MIGA would purposes only, each country wi:ll have ance goes in to effect, and the commer- THE BANK'S WORLD I NOVEMBER 1984 3 cial or business risks. ence and help attract new investors? ing, there is no basis for suspicion. I'm Q. SO devaluation is not considered a A. Well, a positive investment climate confident that many developing coun­ non-commercial risk? is an important, if not essential, ele­ tries will support the new proposal. A. No. It's considered as a risk which ment for attracting foreign invest­ Q. Would you say the new proposal is businessmen take under reasonable ment. It may not be enough by itself, more attractive to host or home coun­ circumstances. but it's necessary for investments to tries? Q. Most industrialized-and even come in. It's also not enough to have A. We hope it will be attractive to some developing~ountries already good investment opportunities. The most, if not all, members of both have national insurance schemes. Why opportunities must be available in the groups because it will serve the best then is there a need for MIGA? right climate. And creating the right interest of both. It's meant to do what A. Investors today are either covered climate in as many developing coun­ present facilities cannot do, and, in by a national agency, or a private tries as possible is what MIGA will try addition, to enable present facilities to company, or are not covered at all. to promote. improve quantitatively and qualita­ Most foreign investments aren't in­ Now, for investments to grow, you tively what they're doing, and to co­ sured-only 20% of the annual invest­ need the right infrastructure, be it operate with them. It's meant to en­ ment flows ofOECD countries, and physical, financial, administrative, courage more investment in a manner about 9% of their stock, seem to be legal or even psychological. Taken to­ that helps the recipient countries. It's covered by national agencies. This it­ gether, these elements create the cli­ meant to provide a forum for policy self shows that present coverage is far mate for investments. The Agency in­ advice and technical assistance in for­ from complete. Not that investors tends to address them to insure that mulating policies and legislation on don't ask for such coverage; there are the risks investors are likely to face the treatment of foreign investment. many limitations inherent in the na­ are basically business risks-those Q. What steps remain to be taken be­ tional approach. they normally accept-and, that be­ fore MIGA becomes operational? In addition, many investors say they yond these risks, there will be coverage A. So far, we've had extensive discus­ don't even try to invest in developing and protection in financial terms by a sions with our Executive Directors. countries because of the perception of credible international agency where We've formulated a new proposal, instability, political risk, and so forth. both the investors' countries and the which is now in the advanced stage of And, as I said at the outset, the vol­ host countries are fairly represented. a draft convention. What remains to ume has declined. The regions which Q. Historically, the Latin American be done is, first, a series of consulta­ used to account for the greater part of countries have been against the idea of tions with governments. We're con­ foreign investment happen to be the a multilateral agency. Are they opposed sulting with OECD countries, and will most heavily indebted. And there's to MIGA? And if so, why? do the same with developing coun­ some hesitation on the part of foreign A. Latin American countries were op­ tries. investors at present. posed to the old proposal. I hope that The draft convention, perhaps in a Q. So MIGA won't be competing with after they study the features of the revised form, will be submitted to the national agencies? new one-the enhanced role given to Board of Directors of the Bank, which A. Far from competing with national the host countries, and MIGA's basic will then decide what to do with it­ agencies, MIGA will complement objective of drawing more foreign in­ whether to approve it, or to organize what they're doing and help them ex­ vestments-their outlook will change. a conference of interested countries to tend their activities. The idea is to Today there's no international negotiate it anew. Once approved by offer insurance for as many new in­ agency concerned, in the comprehen­ the Executive Directors, it will be sub­ vestments as possible in order to en­ sive way I've described, with the for­ mitted to the Board of Governors in courage a larger flow. The Agency eign investment issue. MIGA will not the form of a draft multilateral con­ won't be competing with existing na­ only protect investments, but the in­ vention to be signed by interested tional or private schemes. On the con­ terests of developing countries as well. countries. trary. It would enable them to diversi­ It is required to guarantee only new Q. Will this be done before the next fy their risks-to leverage further developmental investments, and, for Annual Meetings, for instance? whatever resources they have. This its own financial viability, MIGA A. That will depend, of course, on the can be done through coinsurance and won't insure an investment before action or inaction of other parties. reinsurance of the cover these agencies making sure it is a sound one. Naturally, on our side, we hope that offer today. Moreover, MIGA would MIGA's coverage-its protection­ the process will be completed as soon provide uniform protection-where will also give the investment a quality as possible because the needs of devel­ there is now diversity-and new pro­ stamp, which is in the best interest of oping countries require speedy action. tection where coverage isn't available. the host countries. But the completion of the process de­ Q. Is that why you believe MIGA Since it is proposed that host coun­ pends on parties other than the Bank's would, in fact, boost business confid- tries will be members of equal stand­ managemen t. II 4 THE BANK'S WORLD I NOVEMBER 1984 ,- dJC · . , :::::a.~ . .-. -n" . . I ~.. J I ~!~, ~"--"'~ =--:-" ~~ - . ~. . -~ § ~ Q) ~ ~ >­ D V> o 2 Q. ennis Sia For Margaret Russo, Winning Is a Family Affair by Ellen Tillier "We think we made a bit of ten­ nis history. As far as we opened up exciting possibilities. "Last year I was the baby of the she and Cathy Sharp lost in the semi­ final of the women's doubles to Billie know, this may be the first time a group," she says, "and my first big­ Jean King and Rosie Casals who went husband and wife have won a major win was the national 35-and-over on to win the finals over Betty Stove national title in the same week," says grass court title in Philadelphia. I end­ and Virginia Wade. Margaret Russo, a Benefits Assistant ed up ranked number three nationally "In that match, I probably played in the Compensation Department of in women's singles, and number five the best tennis of my life because there the Bank. nationally in women's doubles in the was no pressure and I gave it all I had. The title is the women's and men's group. Even though they won easily, I really 35-and-over United States Tennis As­ "This year I should do even better. enjoyed it." sociation (USTA) Indoor Champion­ I was also runner-up in the USTA clay Another thrill occurred when John ships she and husband Gene-a top courts tournament last April and in Lloyd asked Gene to warm up Chris tennis professional in the Washington the USTA grass courts in July. The Evert Lloyd for her finals match area~aptured last May. Gene won rankings for 1984 won't come out un­ against Martina Navratilova, "be- · his tournament in St. Louis, Missouri, til January, but my record this year cause Gene is left-handed and has an on the day she was to begin hers in makes me a strong contender for the aggressive game like Martina's," says Milwaukee, Wisconsin. number one spot." Mrs. Russo. "They practiced for As Mrs. Russo tells the story, Her excellent results on the senior about an hour and then John Lloyd "Gene phoned me with the news of his circuit made her eligible to participate asked us to sit with him to watch the victory just as I was about to begin my in the U.S. Open at Flushing Mead­ match. It was very exciting to be right first round. 'I've done my part,' he ows, one of the four major annual there in the box next to the court." said to me. 'Now you do yours.'" world-class tournaments. Only 16 Although different from her hus­ Four days later, she had filled the women are invited to play in the band's, Mrs. Russo's game is also bill and more. Not only did she win over-35 women's singles, and Mrs. "aggressive"-hard serves, flat the singles championship but the dou­ Russo was thrilled at the idea. ground strokes, maybe a little top spin bles as well, with partner Cathy Sharp She's played at Flushing Meadows or a slice on the backhand. She likes from Anchorage, Alaska. twice now and reached the semi-finals to mix her shots to keep her opponent This year was Mrs. Russo's second this past September, losing to Laura guessing, but her basic aim is to get to .-t in the 35-and-over category, and mov­ Dupont who won the title. But her the net as often as possible. ing into the senior category has finest hour, she maintains, was when Tennis has dominated Mrs. Russo's THE BANK'S WORLD I NOVEMBER 1984 5 life for longer than she can remember. says, "still playing. With all the pres­ set and be at three-love, 1 still have to Both she and her husband were born, sures of work and home, I'm really keep telling myself, 'you can win this bred and trained in Australia, where having more fun than ever because match.' When I'm in trouble and start ·r they met quite naturally on the courts now 1 have to work hard to deserve having doubts, 1 have to keep telling while playing on the junior circuit. my hours on the court." myself to play my own aggressive style "My mother played a lot," she ex­ What puzzles many people is how so that 1 don't choke. 1 tell myself 'you plains, "and she used to take me in my Mrs. Russo copes with her activities at can do it, you can do it, you can do it,' stroller to the club. "So 1 grew up on home and in the office and still keeps and then 1 do." the courts, surrounded by tennis play­ up her high ranking. ers. And, with two tennis playing sis­ Winning Is Terrific "It's not something 1 like to think ters and one brother, 1 was also ex­ about too much," she laughs. "A lot "Tennis is something you should en­ pected to play. of people ask me how 1 do it. All 1 say joy. We don't force our kids to play "I picked up my first racket when 1 is that we just keep on going and do when they don't want to. As for me, was 8, and began competing in inter­ what we have to do. I've never enjoyed it more than 1 have club matches when 1 was 9 or 10.1 was "Actually, now that the children are in the past two years. Moving up to on the school team, and played many a little older, it's getting easier, both the older group has improved my tournaments in my age group. By the for the tennis and at home. Alicia, game, and these national tournaments time 1 was 13, 1 began to get really who's nearly 12 now, and Derek, I'm winning are terrific. I'm looking serious about the game and spent who's 7, both play, so they can come forward to going back to Flushing practically all my time on the courts. with me if they like when 1 practice. Meadows next September. "Every day, after school, 1 was in­ And they're old enough now to do "As a matter of fact, I'm finally volved in tennis. 1 used to help the jobs at home." discovering how adaptable 1 can be to coach feed balls during lessons and hit change. Until recently, I've always for hours with other players. It takes Juggling Annual Leave been very finicky about playing with a long time to develop good strokes. When does she find the time to VS (a top-quality gut that is expensive "I traveled all over Australia play­ play? "Weekends, of course," she and fragile). Since 1 liked my mid-size ing the junior circuit, and finished up says. "When I'm not preparing for a racket strung very tightly, my strings ranked 12th nationally in the 18s (the tournament, 1 also play once or twice often broke-once when my racket 18-year-old and under group)." a week after work. But when there's a was just sitting in the closet-so Gene tournament coming up, 1 have to play convinced me it was time to switch to The Original Plan five or six days a week. My main synthetic string. He also got me to Soon after they married, Mrs. Rus­ problem isjuggling my annual leave to switch rackets, so now 1 play with the so and her husband left Adelaide, be able to do all this competitive play­ Rossignol F-250. I'm simply amazed 1 Australia, to come to the United ing. was able to make all these changes." States. The original plan was to stay "About 95% of the group of wom­ Reflecting on change and the future, two years. They arrived in October en in the 35-and-over category are she adds: "I'm going to keep on play­ 1969, and Mrs. Russo joined the Bank involved in tennis full time. Obviously, ing for a long time. Just think. After 1 in 1970. they have more flexibility than the rest fade out of the over-35s, I'll go into But both Russos were itching to of us who have regular jobs. But we the over-45s, then -55s and -65s. play full-time tennis for a while. After manage. There'll always be tournaments to pre­ the birth of their first baby, Alicia, at "For me, the toughest part of tour­ pare for. I guess I'm never going to the end of 1972, they decided that it nament play is mental. 1 can be up a quit." II was now or never. Taking the baby with them, they left for Europe where Margaret Russo's Tips for Tournament Tennis Players they played intensively, mainly on the grass courts of England. l. Do a lot of stretching before you begin play. "At every tournament, the baby 2. Before a tournament, go out and warm up for 20 or 25 minutes, and then was the star," says Mrs. Russo. "Not just sit down and relax as you wait to play. many babies were on the tournament 3. While warming up, practice all your shots-ground strokes, volleys, circuit in those days. But after all, all overheads, etc. they do is eat and sleep at that age, so 4. My biggest downfall is getting nervous. After all these years, 1 can still it was easy." make a basic mistake. Under pressure, anything can happen, but I don't give When they returned from Europe, up. So my advice is stay out there and play your best. Mrs. Russo rejoined the Bank at the 5. Be sure to stretch after the match also. II end of 1973. "And here 1 am," she 6 THE BANK'S WORLD I NOVEMBER 1984 Vol. III, No. 48 November 29, 1984 This Week • World Bank News making mark as weekly chronicler of World Bank activities • Bank's news releases seek greater attention in the world's press Feature May-June is a busy period for many World Bank staff. During this time, many more lending operations are presented than during any other period of the year to the Executive Directors. And this means a hectic time for operational staff who must guide their projects through the final stages. The rush of activity within the Operations complex has an impact on the support complex as well. The Secretary's Department, Programming and Budgeting, Language Services, and the Print Shop are all under great pressure at this time of year. Another, less well-known group of people whose work expands during this period is preparing press releases and the Bank's media newsletter in the Press and Information Office (PIO) of the Information and Public Affairs Department (IPA). Three staff members produce the press releases which announce and explain newly approved Bank and IDA projects. During the "slow" periods of the year, approvals of Bank and IDA lending operations average about four a week. In May and June of this year, 95 operations were approved--a weekly average of more than 10 press releases of about 400 words each. The unit produces approximately 250 project press releases a year, along with some 50 press releases to announce such matters as policy changes, the publication of major reports and financial results. "There is tremendous pressure," Hugh Blackman, the Edi tor, told The Bank's World. "During May and June it's simply too much for the Assistant Editor and me to cope with the writing and editing." This year, other staff in IPA helped with press release writing in addition to their regular duties. "Our colleagues saved us from working through nights," Mr. Blackman and Assistant Editor Leandro "DD" Coronel agreed. Messrs. Blackman and Coronel moved to their current assignments from other jobs in IPA in October 1983. Their mandate was to secure a higher degree of acceptance for the press releases in the world's press, and they have made a determined effort to make the press releases more attractive, concise, and, most of all, effective. continued next page THE BANK'S WORLD I NOVEMBER 1984 7 - 2 ­ "That meant a ruthless cutting of the jargon," Mr. Blackman said. "And our headlines and stories must be well-written and eye-catching." Says H. Martin Koelle, IPA's Deputy Director and concurrently PIO Division Chief, "There are many ways of talking to the press about the Bank. Personal contacts with media representatives are one thing. We spend a lot of time in IPA keeping our personal communication lines open with the press. And a strong program of press conferences, briefings, lunches, and interviews is ye t another way to keep media interest in The World Bank high. But there is no substitute at all for high quality press releases and a well-made newsletter. They are the Bank's only regular written word to the media worldwide. When we speak, we want the media to listen. And they will listen if we feed them solid news and attractive stories, not bureaucratic drivel." Messrs. Blackman and Coronel say that the Operations staff, who are consulted on the accuracy of the press release drafts, have generally been very cooperative. "Most of them understand what we are trying to do and will often suggest simpler ways of saying things," Mr. Coronel said. The clearance of drafts involves senior staff, loan and project officers, and IPA staff in charge of public affairs. The process must function smoothly so that the timely flow of press releases to the media is not disrupted. Another product that has preoccupied Messrs. Blackman and Coronel is World Bank News, the weekly newsletter that caters to the news media. The newsletter, a fuller chronicle of maj or Bank acti vi ties than individual press releases, was launched in October 1982. Its aim is to provide busy journalists with a quick and accurate weekly account of the Bank's activities and is an important part of the Bank's efforts to establish a strong image outside the institution. The newsletter is hand delivered to some 130 key journalists in Washington and mailed to another 4,000 worldwide. It is also distributed to about 1,500 Bank managers and former staff. (Copies are posted on the bulletin boards next to the C building coffee shop and the E building cafeteria.) The Bank's Paris office translates it into French and does a separate mailing. Language Services does a Spanish translation and sends it to a number of Spanish-speaking journalists. A German edition is in the planning stage. "The former Editor, Kyaw Htun, did a good job starting the newsletter," Mr. Blackman said. "When he retired, we inherited a product that had already taken shape and on which we could build." The new editors added some sections, and they vigorously sought newsworthy material in the Bank to broaden the scope of the reporting. For instance, statements and activities of senior staff that previously would have gone unreported found their way into the newsletter. "The response by managers and senior staff has been encouraging," Mr. Blackman added. The newsletter was expanded from four pages to an average of six per issue. Several editions have had eight pages, and there is a plan to publish this size regularly in the future. A distinctive layout is a crucial factor. The editors are currently working with the Art and Design Section in ADM to come up with a revised layout, using new typefaces and experimenting with color. 8 THE.BANK'S WORLD I NOVEMBER 1984 - 3 ­ "We're also fortunate to have a Staff Assistant who is a 'whiz' on the Micom word pr,ocessor," Mr. Blackman said. "Sharon Stout joined us this year just in time for the 'onslaught' in May. She does all sorts of marvelous things on the Micom, and her proficiency has helped us redesign our format." Ms. Stout, who moved from Eastern Africa Projects, said, "It was tough coming on board at the beginning of the 'bunching season,' but I felt ready for a new challenge." The group's efforts are paying off, as examples show. An article in the newsletter about the effect of the presence of elephants in Bank project areas inspired a story by a top reporter for Associated Press-Dow Jones wire service. The AP-DJ story has been reprinted in many papers around the world. Several U.S. dailies--including the Washington Post, the Wall Street Journal, and the Journal of Commerce--regularly use the brief notices in the newsletter on new Bank loans. Now the group is gearing up to handle the mini-bunching period of Board presentations in December. Can the hectic stretch of mid-May to the end of June be far behind? '0 o § .!!! Q) "i ti :i ~ .9 o .s= Il. Left to right, Leandro "DO" Coronel, Hugh Blackman and Sharon Stout working on press releases and World Bank News. THE BANK'S WORLD I NOVEMBER 1984 9 I t is not uncommon for people to have problems getting a good night's sleep when they are away from ness and sets the tone for the next 24 hours in the cycle. "Try to avoid over-the-counter home---even those who sleep like "the (sleeping) pills, if possible. They can proverbial log" at home. cause hangover symptoms and often "Sleeplessness," says Dr. Andre Le­ interact adversely with other sub­ brun, the Bank's Medical Director, stances you may be taking when trav­ "can often be a real problem for staff eling-such as decongestants, motion who travel." He recommends an arti­ sickness medications and alcohol. cle by Dr. Karl Neumann that ap­ Furthermore, such sleeping aids can peared in Travel & Leisure magazine (affect judgment and) cause drug de­ in August 1983. Excerpts of that arti­ pendency. cle, courtesy of American Express "At certain times sleeping pills can Publishing Corporation which pub­ be helpful, however. If, after three or lishes Travel & Leisure, appear below: four days of traveling, your sleep "Some sleeplessness away from problem is getting progressively worse home is quite ~ommon and normal. and you are becoming nervous, con­ The causes: a new environment, a diff­ sider taking a sleeping pill. Be sure to erent bed and, often, increased mental use the medication for no longer than stimulation. three days." "No matter what time you go to bed (while on mission or home leave), Adventurous Eating it's especially important not to doze "Do your most adventurous eating the whole morning away, says Dr. at lunchtime. Large meals, extra spicy Michael Thorpy of the Sleep-Wake entrees, and extra greasy dishes tend Disorders Center at New York City's to keep you awake. Avoid caffeine by Montefiore Hospital. 'An extra 15 watching how much tea, coffee and minutes or half-hour in bed in the cola you consume. Alcohol may in­ morning is nothing to worry about, deed be a mild sedative, but it inter­ but spend much longer than that, and feres with deep sleep and may wake you'll have problems sleeping that you a few hours later. Milk, especially night.' " when warm, and tryptophane, an ami­ no acid available in health food stores, Try Extra Pillows seem to help some people fall asleep, "Whenever possible, eat your eve­ but have no effect on others. ning meal at about the same time as at Prolonged intense activities, howe;d,r, "Crossing many time zones throws home. In countries where dinner is should be avoided ... After an espe­ a monkey wrench into your wake­ served very late, have a snack and tea cially stimulating or nerve-wracking sleep cycle. For the first few days, your in the afternoon and then eat a late but day, spend an hour relaxing before body wants to rest at a time consistent light supper. Otherwise, you're put­ going to sleep. with your home clock, rather than the ting food into your stomach at-or "Exercise combats many of the time of your destination. To minimize right before-a time when your diges­ conditions that keep travelers awake: discomfort and speed adjustment, tive processes are usually at rest. This swollen feet, sore muscles, backaches, schedule your arrival for bedtime. If results in poor digestion, bloating, fatigue. One activity that is especially you must fly at night and arrive in the stomach discomfort and sleeping compatible with travel is walking. morning--{;ustomary on flights from problems. Ifindigestion does keep you You can do it anytime, anywhere, re­ America to Europe-take a nap for an awake, try elevating your head with gardless of age or physical condition. hour or two on arrival, enjoy the rest extra pillows. This relieves problems Another good exercise is swimming, of the day and then retire early that caused by stomach acid flowing back and pools are available in many lo­ evening. Also be doubly sure to re­ into the esophagus. cales. duce nighttime food intake, alcohol "When traveling, it's a good idea to "The ideal time to exercise is in the and medication in flight and cigarette get about the same amount of activity morning, preferably upon waking, smoking. as you do at home. Exercise releases says Dr. Merrill M. Mitler of the Sleep "(And) ifloud noises bother you, substances from the brain, which are Disorder Center at the Scripps Clinic ask for a quiet room in your hotel ... called endorphins. They act as natural in La Jolla, California . This starts the Also carry a pair of earplugs to reduce tranquilizers and help induce slumber. wake-sleep cycle with complete alert­ sound levels." • 10 THE BANK'S WORLD I NOVEMBER 1984 o 'Challenges for Technological Development in Asia' Moeen Oureshi Moeen Qureshi, Senior Vice President, Finance, discussed Now, GNP (Gross National Product) growth is only one "Challenges for Technological Development in Asia" at the 7th crude indicator of economic improvement. But indicators Discoveries International Symposium in the Honda Foundation of basic human welfare also point to widespread progress Series before the Australian Academy of Technological Sciences in in Asia. Average life expectancy in the developing countries Melbourne recently. Here are excerpts of his remarks: of Asia is now about 59 years, 17 more than it was as late as 1960. In China and the middle-income countries of East W hich two nations do you think achieved the highest rates of economic growth in the world last year? The answer: First, the Republic of Korea. Second, the People's Asia, nearly all children are now able to attend school. Even in the other low-income countries of Asia, other than China, literacy rates have dramatically improved. Republic of China. India and Pakistan, with growth rates When I was growing up in Pakistan, many people in the of more than 6%, also came out in the top 10. villages and rural areas had no shoes. Hookworm and The world has changed. smallpox were problems. Since then, health and hygiene It has changed most in the developing world. We have practices have progressed enormously. People not only have traditionally looked upon labor, land and capital as the shoes but now frequently have bicycles. The scourge of three vital factors of production. I believe that we should smallpox has been eliminated. identify a fourth: technology. The leap into the technolog­ The Green Revolution ical age explains more than anything else the dramatic change that has taken place in these countries. Consider the dramatic changes in agriculture in Asia­ Asia is a microcosm of the most and least advanced of the so-called "green revolution," the technological transfor­ countries: on the one hand Japan, with its highly advanced mation of peasant agriculture: technological base; on the other, countries like Bangladesh -India had a severe drought in 1982, the kind that would and Nepal, where an indigenous technological base is only have provoked frightening headlines 20 years ago; but beginning to emerge. And even within some of the Asian India's agriculture is now well enough developed so that the countries, you have the old coexisting with the new: the international press hardly noticed it. development of nuclear power plants side by side with -Bangladesh is now routinely growing hybrid wheat on bullock and camel carts that have not changed over the 10 million hectares where wheat was never grown before. centuries. -Some of the developing countries of East Asia have maintained, over the last 20 years, rates of agricultural Inflicting Heavy Costs on Asian Countries growth that are among the highest in the world. The global recession of the last few years has inflicted In industry, too, the market developing countries of East heavy costs on the Asian countries. But, in retrospect, this Asia, such as Korea and Taiwan, have achieved spectacular recession-the most severe in more than 40 years-has also results. They have oriented their industries toward interna­ demonstrated as never before the exceptional resilience of tional trade. Over the last decade, Korea has expanded its this part of the world. manufactured exports faster than any other country in the In 1983, the developing countries of Asia averaged eco­ world, and the Philippines, Malaysia and Thailand have nomic growth of 6-1/2 % • That was in stunning contrast to expanded manufactured exports at rates of 20%) to 30% a the average growth rate of the Third World as a whole, less year. ,.. l than I %. And it was nearly three times the average growth A major change in Asia now is, of course, China. rate of the world's economically advanced nations. After years of isolation, China's search for foreign tech- THE BANK'S WORLD / NOVEMBER 1984 11 nology is striking. No social system changes overnight, or so real interest rates still remain historically high. · l even in a few years, but China's present leadership has been You will recall how the explosion in energy prices pressing hard for reform in almost every aspect of Chinese sparked much technological innovation to economize on life. Technological modernization, openness to internation­ the use of energy. Our first steps were rather crude. We al commerce, and increased incentives for production are turned down the thermostats. Then we installed double fundamental to China's present strategy. Technology trans­ glazing. It took some time before we began to adopt new fer has been an important aspect of most of the projects The technologies, such as heat pumps, to conserve energy. World Bank is now financing in China. For the same reasons, high interest rates suggest to me The achievements of the developing countries of the East that technology has already begun taking a turn toward Asia and the Pacific Region in advanced technology tend to conserving capital even in the industrial world. Quite apart make the headlines, and understandably so, since it has from several attempts at developing "appropriate technol­ given the region such a strong position in the international ogy" over the last two decades, most of the developing marketplace and underpins so much of its dynamic eco­ countries of Asia have responded to the increased scarcity nomic performance. The part technology played in East and high cost of development capital by cutting back on Asia's green revolution is also quite well known, although their investment plans and by taking measures to encourage few people appreciate its impact from paddy to paddy and the more efficient use of resources generally. Such reforms from one peasant family to another, and on Asian food in national economic management are essential, but these deficits overall. Success with developing new, appropriate cutbacks cannot be taken too far without seriously endan­ technology for low-cost earthwork and road construction, gering prospects for future growth. for water supply and sanitation, or for agricultural exten­ In addition-and I am not sure this is widely understood sion, urban shelter and the like has almost passed unno­ yet-higher interest rates have implications for the choice ticed. of technology. Obviously, the payback period on an invest­ All these technologies, glamorous and unglamorous, ment is quite different if the cost of capital is factored in at have played their part in the economic and social transfor­ 6 % ,12 % or 18%. This is bound to affect technological mation of East Asia that I have just described. choice as well, and to reinforce the attractiveness ofless capital-intensive appropriate technology. Higher Standards of living The widening scope for the private sector in technological The point is a simple one: The developing nations of Asia, development is the second topic I'd like to touch on. This relying on improvements in technology, have achieved high­ is happening against the backdrop of a recession which has er standards of living for millions of their people. pushed many countries, both developed and developing, to Of course, great problems remain. Most people in the be more receptive to foreign investment, which brings with developing countries of Asia are still severely constrained it the benefits of access to new technologies. by low incomes. Too many are still miserably poor. A few of the poorest countries have been left far behind the rest Tremendous Waste, Lost Opportunities of the continent. But it is no small thing that the bulk of At one time, most developing countries were quite wary this region has been able to sustain economic growth and of direct investment by multinationals, afraid that it might attain significant reductions in poverty. compromise their sovereignty. But it has become more and It seems to me there are three overarching challenges for more obvious that heavy-handed restrictions on all foreign technological development in Asia right now: investment have resulted in tremendous waste and lost 1. We need to consider the implications of sustained high opportunities. India's former posture, with its heavy shel­ interest rates on technological development. tering of domestic enterprise, has been very costly to the 2. We need to focus on the proper role of government economy; in Latin America, the protective policies of the and of the private sector in the application of technology. Andean Pact countries are another major example. To my How this balance is struck is crucial. mind, experience has confirmed that direct foreign invest­ 3. There is the urgent need to harness and adapt technol­ ment, properly managed, is often the simplest and cheapest ogy to address the pressing problem of rapid popUlation way to acquire technology. In this area, The World Bank growth. has frequently played a supportive role. We are living with the highest real interest rates in A trend toward more liberal treatment of foreign inves­ modern history. For the last 50 years, real interest rates in tors is apparent in many developing countries. This presents the range of 2 % to 3 % have been the norm. In the I970s, a challenge to private enterprise: to spot new opportunities inflation resulted in much lower, sometimes negative, real as they open, and indeed make a larger contribution to the interest rates. But since about 1979, real interest rates have economic and technological development of these coun­ been extraordinarily high-on the order of 6% to 8%. tries. Nominal interest rates and inflation have both come down, I trust that international companies have also, like the 12 THE BANK'S WORLD I NOVEMBER 1984 developing countries, learned some lessons from experience. technology is population. Perhaps the most important lesson is that the developing Rapid population growth in the developing countries countries are determined to strengthen their own techno­ tends to hamper progress toward higher standards ofliving. logical capacity. Developing countries want to learn at least Throughout history, improvements in technology have en­ enough about technology to be intelligent shoppers. In time, abled the increase in population to be absorbed. But now they want to be able to adapt technology to their own needs the rate of growth in many developing countries has and, eventually, become creators and exporters of technol­ reached unmanageable proportions. So, for the first time in ogy themselves. history, technology is being used to reduce population International firms can help developing countries along growth. this path-through their sales of equipment and software, I believe that Asia is a region of opportunity. Yet, there and by making their subsidiaries active in technological remain so many under-funded and unexplored lines of creation. Ifinternational firms succeed in strengthening technological development in Asia. Indeed, globally the indigenous technological capacity, they will be welcome in problems of the developing countries have not received the developing countries for a long time to come. anywhere near the attention they deserve from scientists, A third area where the needs of developing Asia challenge engineers and inventors. II Pricing Distortions and Institutional Adjustment Robert Picciotto Robert Picciotto, Director, Projects Department, EMENA commercial funds flows are declining sharply. In such an (Europe, Middle East and North Africa Regional Office), environment, defensive and flexible development strategies made the following remarks at a session several EMENA are preferable. borrowers' delegates attended during the recent Annual Meet­ What are the options available? And how do prices and ings in Washington, D.C.: incentives figure in the choice of such options? I ncentives and prices are closely linked. Some would say that the discovery of this link by Adam Smith led to the birth of economics. According to Smith, "the private inter­ A recent Bank study classifies developing countries ac­ cording to their contrasting modes of adjustment. The mixes of policies chosen to respond to external shocks are ests and passions of men naturally lead to (resource alloca­ not easy to categorize. But with some ingenuity, P. K. tions and prices) which are the most agreeable to the Mitra, in his study entitled, "A Description of Adjustment interests of the whole society." to External Shocks: Country Groups," has developed a Unfortunately, reality does not always fit a theory which, serviceable typology according to which nine of 34 coun­ while powerful, relies on static assumptions, postulates free tries were found to have experienced favorable shocks. Of competition and does not account for economies of scale or the other 25, five (including Morocco and Spain) resorted technological change. Whatever the form of government, to external financing without adjustment, six (including there is a need for public policy to gear the economy toward South Korea and Taiwan) adjusted through export expan­ objectives-especially social objectives-that would not en­ sion and public resources mobilization, and three (including sue from the free operation of market forces. Obviously, the Yugoslavia and Portugal) were characterized by import choice of policy tools is not neutral and can make a substitution without public resource mobilization. The considerable difference in the results. other II relied either on export expansion, e.g., Turkey, or Development policy choices are never easy. Given the on public resource mobilization, e.g., Kenya. Follow-up uncertain global context, they are especially difficult today. studies are planned to trace the implications and modalities The severity of the recent external shocks and the volatility of these contrasting strategies. of exchange rates have few parallels in economic history. In In many developing countries, policy-makers look at addition, terms of trade have moved against developing adjustment programs in terms of their impact on formal t . country exports, concessional aid flows are stagnant and net development plan targets, especially where major impor­ THE BANK'S WORLD / NOVEMBER 1984 13 tance is given to the setup of a large and modern manufac­ and favor capital-intensive techniques at the expense of turing sector and the expansion of state-operated social creating jobs. services. In such cases, price distortions may not be entirely But prices, important as they are, are not everything. In fortuitous. Rather, they result from the need to keep rela­ order to deal with the increasing volatility of markets and tive prices consistent with plan targets instead of reflecting the imperatives of modern technology, institutional devel­ demand and supply conditions. Other price distortions are opment must go hand in hand with overall policy reform. combined with rationing systems for capital, foreign ex­ With increased urbanization and improved communica­ change, skilled manpower and other scarce inputs. tions, naked compulsion loses effectiveness, given the great­ What is not always appreciated-whether in centrally er range of opportunities available to workers and manag­ planned or in market economies-are the high costs, both ers. Adequate compensation is only part of the larger in efficiency and in equity, which may ensue through the motivational system which must be constructed. But it is a application of distorted prices and incentives. In particular, crucial part. experience suggests that the maintenance of direct controls And it is also important to look beyond the pecuniary and price distortions typically leads to a chronic gap be­ motive. I recently visited two energy projects in remote tween export achievements and export targets while imports areas of Turkey. Both projects were in the public sector, tend to overshoot planned levels. Furthermore, the limits of sponsored by agencies with entirely different administrative extracting a surplus from traditional sectors, usually agri­ traditions. One project was on sched ule; the other was culture, are often reached earlier than expected. In the end, several years behind schedule. In the former case, workers when external shocks are severe, even a centralized com­ were well housed, well fed and well managed. They felt pride mand economy must adjust its plans. in being associated with a successful project, and they were Obviously, it is cheaper to correct the course and admit keen to cooperate with management. Not so in the other mistakes early rather than late. The need for corrective case. action is easier to spot when subsidies are open and iden­ tifiable. Hidden costs (through subsidized capital, preferen­ With Autonomy Came Accountability tial access to inputs, etc.) are pernicious in their indirect The successful public corporation did "the right thing" effects. They tend to lead to pampering of "infant" indus­ rather than only "doing things right." This was achieved by tries long after they should have reached robust maturity. providing the necessary autonomy and flexibility to the Thus, the slowdown of projects and the restructuring of manager on the ground. He was encouraged to use compe­ investment programs should be a pillar of adjustment pro­ tent consultants and contractors. The objectives of his grams. But this is not always recognized by governments enterprise and the limits of his authority were clearly set. given the priority ascribed to the long-term gains expected He was spared day-to-day interference by the political from integrated plan execution. Rarely are these gains establishment and by headquarters, and he was in control weighed systematically against the short-term allocative of his staff. But with autonomy came accountability, and he efficiency gains which would result from a reduction in price knew he would be penalized if he failed. distortions and a restructuring of the investment program The unsuccessful public corporation by contrast was in line with market realities. plagued by unstable leadership, routine and minute head­ quarters examination of all field decisions, harassment of Proper Foreign Exchange Pricing Crucial management regarding expenditures, rigid compliance with Excessive industrial protection is often the reason why civil service rules, constraints on hiring and firing staff, etc. trade adjustment is often attempted with an overvalued The complexity of resource allocation rises exponentially exchange rate combined with multiple exchange rates and as the economy becomes more diversified and sophisticated. other trade restrictions. This can lead to distortions which At early stages of economic development there are un­ are so extreme that they handicap productive activities in doubted advantages to the command economy. However, which comparative advantage exists. In extreme cases, at later stages, the sheer number of decisions required for efficient agriculture producers are not paid enough to cover efficient resource allocations can become an unwieldy ad­ their production costs, while factories which use more ministrative burden. Reliance on market signals can save a foreign exchange for their operation than would be required' great deal of waste by ensuring allocative efficiency while to import the finished products continue to function. Proper economizing on managerial and technical skills. foreign exchange pricing is crucial to structural adjustment. It would appear that the lessons of the Bank's experience Domestic resource mobilization is also made easier by at country and project level are complementary and, with ensuring appropriate pricing of capital. Negative real inter­ suitable adjustments, transferable. Members of the global est rates not only discourage savers and stimulate capital cooperative which is The World Bank are continually tap­ outflows but also encourage excessive demand for credit, ping this experience and helping to replenish it. This is calling for burdensome and ineffective rationing systems, where much of the true net worth of the institution lies. III 14 THE BANK'S WORLD I NOVEMBER 1984 • Y Ex erie ces as a etiree by Albert Waterston Albert and Edith Waterston at the gateway to their home, The Tannery. Photos by Michele lannacci (Editor's note: Mr. Waterston retired three stages of life seem to be youth, ID, documents and manuals, material Jrom the Bank in 1972. His last assign­ middle age, and "you're looking pret­ borrowed from the Joint Library, pay ment was as a Senior Lecturer with the ty well." up any money lowed the dining room Economic Development Institute. Pre­ The second thing that happens, es­ or for travel, return my Bank brief­ viously, he had been Adviser on Plan­ pecially if the ex-colleague is close to case, as well as any equipment. ning Organization and a Senior Loan retirement himself, is he will ask me However, I wasn't really too dis­ Officer. Below are excerptsJrom re­ what I am doing. If I tell him, I find turbed by this because my thoughts marks he made at a recent Bank retire­ he loses interest quickly, and for good were already on the new jobs I was ment seminar.) reason, since what I am doing may going to take on. interest me but rarely interests him. About two years prior to my retire­ A better question he might ask is, ment, the Economics Department of "What motives made you choose to American University (A U) had do whatever it is that you are doing?" offered me an appointment as Profes­ Whenever I visit the Bank, I know that two things are likely to hap­ I could really give him an interesting sor of Economics, and I accepted. And pen if I meet a former colleague. First, answer. a couple of months before I retired, he is apt to remark in surprise, When I retired from the Bank in the U.S. Agency for International De­ "You're looking pretty well." This 1972, I remember feeling as though I velopment (AID) approached me and happens so frequently to Bank reti­ were being stripped of everything that asked me to start a project for improv­ rees that former staff member Harold had identified me as a Bank employee ing the management and implementa­ .J ~ Graves says that for Bank retirees the and as a person. I had to turn in my tion of agricultural plans and pro- THE BANK'S WORLD I NOVEMBER 1984 15 a beach and a canoe; and finally, we 'The day after I retired from the Bank, I found myself built a summer house near the pond with two offices; I certainly had not retired, only which we use as a vacation place changed jobs. ' where we spend almost every summer evening watching the sun set. As we walk between the summer house and grams in the less developed countries pieces of antique pewter, and because The Tannery, we see some 240 trees where they operated. I accepted that really fine pieces cost money I didn't we have planted, including an orchard job too. have, I often bought damaged pieces of apples, peaches, pears, cherries, So the day after I retired from the which I then tried to repair. I liked plums and nectarines, as well as a Bank, I found myself with two doing this work because I was able to grape arbor, strawberry and raspberry offices-at an institute where the AID work with my hands while my mind patches. project was housed, and at AU-be­ remained free to dwell on other mat­ And what are the lessons we learned sides doing consulting assignments for ters. I decided, therefore, to enter an from this experience during my retire­ the Bank and others. Thus, although I ancient craft: pewtering. ment? retired from the Bank, I certainly had But this decision raised problems First, I had found a step-by-step not retired; I had only changed jobs. because our little house in Bethesda, retirement an easier transition to At first, I found my increased work­ Maryland, could not accommodate a complete retirement than I imagine it load and responsibilities exhilarating metal-working shop. would have been if I had retired com­ and educational. But as the years Then in August 1977, while driving pletely in 1972 when I left the Bank. passed, I began to find the teaching of in Maryland on my way to Harper's Of course, if I had known then what it development, international economics Ferry, West Virginia, I wandered into was I wanted to do in retirement, it and planning becoming repetitive. Be­ a small historic village, untouched by might not have been difficult to retire sides, working two full-time jobs and time, at the foot of the Appalachian when I left the Bank. doing consulting was pretty burden­ Mountains, about 55 miles from some. So, in 1976, I retired from the Holding on Too Long Washington, D.C., where an Ameri­ university. can Civil War battle had been fought Second, when I did retire complete­ in 1862. ly, I retired before I had to. Some Not Completely Retired And in that town of 63 houses and people I know hold on too long. I Obviously, the AID and consulting 200 people, I came upon an old build­ thought, correctly I believe, that the work I had meant that I was still not ing which had served as a tannery for best time to retire was when I was still completely retired. I maintained the production of cavalry bridles and wanted. It was good for my ego to be 9 a.m. to 5 p.m. office hours and trav­ saddles from 1830 to the 1920s, when asked to stay on or to come back to eled a great deal. it had been abandoned and left to fall do consulting. But my wife, Edith, who usually into disrepair and where the ghost of Third, I learned it was not necessary accompanied me on my trips, and I a Confederate soldier who had died to layout a blueprint for my retire­ were tiring of traveling all over the there presumably haunted the place. ment program. It turned out to be world, often to the same countries we easier and better merely to select the had visited before, or even to other Owner of the Property things I wanted to do in retirement countries, most of which were begin­ The old tannery together with and then follow the logic of the choice ning to look like othe~s we had seen. about four acres of very boggy land to do those things which seemed nec­ In any event, we found ourselves talk­ had been purchased for very little by essary to achieve my objectives. Thus, ing increasingly about the possibility an adventurous young couple who my decision to become a pewterer led that I would quit all work for money. had begun to rebuild it. They had inexorably to the decision to move to I had considered two possible aven­ separated, though, and put the place a location where land and labor costs ues I might take when I quit working up for sale, and I found myself the were low enough for me to be able to on development. The first alternative owner of the property. build a separate structure for my shop. had to do with investment counseling, My wife and I moved into the ren­ Our experience says you don't need and I had already done some spade­ ovated house in April 1978, and we an overall, detailed plan for your re­ work in this area and found interest in spent the next six'years finishing The tirement. my ideas. Tannery, building three other build­ Fourth, if one is married, I cannot The second possibility was really ings and developing the land. overemphasize the role of one's my first retirement priority, even We built a combined garage and spouse in ensuring a happy retirement. though it seemed at first to be a bit workshop for me, a large storage and It would have been impossible for me outlandish. Over the years, my wife wood shed, a pond of over an acre, to do what I did unless my wife was at and I had acquired a fair number of stocked it with fish, swimming docks, least in general agreement with my 16 THE BANK 'S WORLD / NOVEMBER 1984 objectives and major projects. Over time, I became increasingly aware that my retirement had created problems of adjustment for my wife as well as for me. This realization made me conscious of the need to think of her when I did things, and helped us build The Tannery and develop its grounds without breaking up our mar­ riage as it had for the people from whom we had purchased the property. Of course, we did not always agree, and on occasion we had to bite our respective lips when we disagreed, sometimes seemingly irreconcilably. Fifth, I learned that it was of the Albert Waterston is a craftsman who takes great pride in working with his hands. utmost importance for my self-respect to have something to do in retirement which I could call my own. Pewtering found that money is no guarantee of­ leave her hospital; she is needed and turned out to be ideal. Every morning, or even a means of assuring-a happy cannot be spared. I bade farewell to my wife, disap­ retirement. Rather, I have found it is 4. Doing things. For many years, I peared into my workshop, returned to the non-material-shall I call it the ran three miles a day, five days a week, the house for lunch, disappeared again spiritual?-things that really deter­ gladly giving up my lunches or other into my shop until 5 p.m. or 5:30 p.m., mine our contentment in retirement. social activities. The pleasure some and returned to my house for supper This brings me to the guidelines I retirees get from painting, playing a to ask my wife what she had been have used in setting goals which give musical instrument, a game of golf or doing all day. This made it possible for meaning and direction to what I have tennis is amazing to behold. And hav­ each of us to contribute to the quality done in retirement. ing seen or heard some of them per­ of the conversation during the evening I. I believe that most of us have form, I conclude that it seems not to meal. Although my main interest has within ourselves a need to leave our matter how well they do these things, shifted to writing, I find the same mark somewhere-as Arthur Miller only that they do them. routine as effective as it was for pew­ once put it, to leave a thumbprint 5. The most important principle, so tering. somewhere on the world. I have found far as I am concerned, is trying to live it is possible to be creative, and thus life creatively as though it were a work Hard Work Is Therapeutic leave a thumbprint, in almost any of art. It means we must learn to Sixth, my wife and I both learned project, from setting out a garden to accept ourselves as we are. It also that hard work is psychologically and preparing marmalade. means we must make reality manage­ physically therapeutic. It is remark­ 2. Being united in a loving relation­ able by narrowing its range to the able how our minds have been preoc­ ship with another human being-a present as much as possible. One can­ cupied with our respective tasks rather spouse, son, daughter, grandchild or a not live creatively by living in the past than with our aching backs. Our only friend-adds meaning to life. I keep or spending time dwelling on what complaint is that work has made the reminding myself that loving means might have been-or by living in the years roll by much too fast. giving without weighing the amount future, often with fear. Instead, we Seventh, I have learned that happi­ of the return, and when I succeed I must seize every moment, making the ness in retirement is not to be found find that I get all the return I need just most of it. by looking for it. Happiness comes as from the giving. To live creatively, we must recog­ an indirect dividend from a task com­ 3. To search for a cause in which to nize the self-destructiveness of all hos­ pleted, an objective achieved or the lose oneself. In my case, my personal tility and negativeness. And it means knowledge that I am on the right track cause was to rebuild The Tannery that we must accept responsibility for in something I am doing. from the shambles in which we found doing whatever needs to be done. It is Most of us who draw a pension it. Rysia Consolo, the widow of Fred up to each of us to mold our own from The World Bank are members Consolo, a former Bank colleague, future. of a fortunate group. While almost has dedicated her time and effort for In the last analysis, the kind of re­ everyone wants more money, for most the last decade to a hospi tal in Rome. tirement we have-the kind of life we World Bank pensioners, money is not In reply to our pleas to visit us, she lead-depends on us. I see this as an t • a major problem. But I have also invariably replies that she cannot opportunity. • THE BANK'S WORLD I NOVEMBER 1984 17 - a ga s arewell r aid EI-Naggar of the Arab Repub­ "I remember many occasions on S lic of Egypt recently bade farewell to the Bank after serving eight years as which I took a position on certain issues which was not exactly in line an Executive Director. In addition to with the declared policy of certain im­ Egypt, he represented Bahrain, Iraq, portant members of my constituency. Jordan, Kuwait, Lebanon, Maldives, This was done-I need hardly say-in Oman, Pakistan, Qatar, Saudi Arabia, full and prior consultation with the Syrian Arab Republic, United Arab countries concerned. Emirates and Yemen Arab Republic. "I interpreted my mandate as a two­ His last day at the Bank was Octo­ way relationship. The first is to reflect ber 31, and early in 1985 he will return accurately and honestly the views and to Egypt to teach at Cairo University policies of my authorities. This is the and to do some advisory work. easier part of our mandate. The more A week before he left, he delivered difficult and, I believe, the more im­ Said EI-Naggar his farewell address to the Board. portant is the responsibility of the Ex­ Here are excerpts: ecutive Director to bring about a "When I first joined the Board in change in the views and policies of his World Bank. The second was the in­ November 1976, I thought I was in for authorities based on his own interpre­ troduction of the poverty focus in a two-year assignment. In the event, tation of the supreme interest of the Bank operations. With these two the two years became-for better or institution or the collective interest of achievements, the McNamara years for worse-eight. his constituency as distinct from the have left an indelible mark on our "I am particularly grateful to my interest of individual countries. institution. They will go down in the constituency for honoring me with "Once more, I am proud of my history of our institution as the years this privilege, the privilege of serving constituency for the ungrudging ac­ of growth and social consciousness." them while serving the premier devel­ ceptance of my own interpretation of Years of Adaptation opment institution of our time." the interest of this great institution. It is hardly surprising, Mr. Chairman, "Ifl may characterize the 3-1/2 A Great Deal of Turmoil that I enjoyed to the fullest extent my years of your presidency, I would de­ "The degree of gratitude to my con­ association with the Bank in service of scribe them as primarily years of ad­ stituency will become clear when it is my constituency. aptation. To be sure, growth has taken realized that this period has witnessed "I have had the privilege of serving place. But I am speaking about the a great deal of turmoil in the diplo­ with two Presidents of the Bank and dominant feature. We are in your matic, political and economic rela­ four Executive Boards. During my debt, Mr. Chairman, for steering the tionships between my country, Egypt, tenure, I have had the privilege of institution with courage, imagination and the rest of the constituency. My participating in one General Capital and wisdom in troubled waters. This first re-election as Executive Director Increase that doubled the resources of has been a period of great changes. took place in 1978, i.e., after President the Bank, in several selective capital Some are related to the deepest reces­ Sadat's trip to Jerusalem. My second increases, in two IDA replenishments sion of the post-war period. Others are re-election happened in 1980 after the and two IFC capital increases." of a more lasting nature-the upsurge Camp David accords. of bilateralism, the changing attitudes Two Great Achievements "Naturally, I am proud of my con­ toward concessional aid, the privatiza­ stituency for such a rare generosity. "Of my eight years, 4-1/2 are ac­ tion of capital flows, the growth of No less important is the fact that no counted for under the McNamara commercial bank lending, the relative strings were attached to my continua­ presidency, and 3-1/2 under yours, decline of the long-term bond market, tion- neither by my government, nor Mr. Chairman. Two gn~at achieve­ the persistence of high real interest by the other Arab governments. I was ments were accomplished during the rates, the mounting burden of external made to feel free to express myself and McNamara years. The first was the debts, the instability of exchange rates do my job the way I saw fit. And I did rapid growth in the capital resources, and the rising tide of protectionism. with no fear and no inhibition. lending and borrowing levels of The "These are major changes-mostly 18 THE BANK'S WORLD I NOVEMBER 1984 'The World Bank . .. is an institution with a great potential which IS yet to be tapped. ' adverse-which have a direct bearing "The ongoing debate on the 'Future "The successful development of The on our institution. Under the circum­ Role of the Bank' is both timely and World Bank over nearly four decades stances, it would have been impossible fitting. The World Bank must relate to has placed it in a unique position. It is to go on as if nothing has happened. the world development scene of the an institution with a great potential Such a course of action would have '80s and beyond. We need to find which is yet to be tapped. It is faced spelled a decline, if not a disaster. solutions to a host of practical prob­ with a great need in the developing "It is a source of pride for me, Mr. lems. Is the Bank doing enough? Can world, which is yet to be met. The Chairman, to have been associated it do more to alleviate poverty and Bank can make a difference for under­ with the far-reaching changes intro­ promote development? In what way development, poverty and famine. We duced under your leadership to adapt can we enhance its effectiveness? It is may well be on the threshold of a new our institution to the decade of the almost a platitude to say that the de­ era of great promise. At least let us '80s and thereafter. Let me refer in velopment needs of a country like hope so." particular to the Special Action pro­ Chad are different from those of a ·The Great Challenge gram, the expansion of structural ad­ country like Brazil. But it is something justment loans, co-financing with pub­ of a challenge to translate the differen­ "This is the great challenge to which lic and commercial sources of funds, tiation of countries into differentiation you, Mr. Chairman, the Board and pool-based lending rates, short-term of operational policies. member governments, especially ma­ and variable rate borrowing tech­ "The Bank is legitimately con­ jor shareholders, will have to respond. niques, the special emphasis given to cerned with efficiency. It is equally "Mr. Chairman, during my years of IFC's role, and the focus on the plight concerned with equity. How to association with The World Bank, I and special development problems of achieve both policy objectives without was privileged to know and enjoy the Sub-Saharan Africa. This is indeed an falling into the trap of ideological bias friendship of many people. lowe a impressive contribution by any stan­ and without encroaching on the sov­ great deal to my colleagues in the dard." ereign right of member countries to Board, and to many members of man­ set their own priorities and formulate agement and staff. I am grateful to all Poverty Is on the Rise of them for their unfailing support their own policies? "The process of adaptation initiat­ "These are fundamental questions and comfort at the difficult moments ed under your leadership is far from which will sorely test the good will, and for the joy shared with them at complete. In fact, it has only begun. resourcefulness and vision of the less serious moments. This has been a The world development scene is far policy-makers in the years to come." period humanly enriching and intel­ from encouraging. One should say lectually stimulating. I am also thank­ Statesmen and Thinkers ful to all my colleagues in my office that it is outright distressing. Poverty is on the rise in many parts of the "Mr. Chairman, at the end of the for their dedication, loyalty and hard developing world. We read every day Second World War the world was work. I wish them all the best. about starving children, about hun­ faced with a situation of untold devas­ "I would like to conclude my state­ dreds of thousands dying offamine. tation and misery. We were fortunate ment by expressing my gratitude and The enormity of this tragedy does not enough at that historical juncture to that of my family for the friendship seem to have sunk deep enough into have statesmen and thinkers of great and generosi ty of the American peo­ the conscience of the more fortunate vision, courage, and, above all, com­ ple. During these eight years we have and the more affluent. This is disturb­ passion. The Bretton Woods Institu­ been the beneficiaries of many good ing enough. tions are the embodiment of these things in this great country. We have "Even more disturbing is the real­ qualities. They are the product of both enjoyed the innate warmth and kind­ ization that it is not a passing crisis. It great minds and big hearts. Ifwe do ness of the American people; we have is a reflection of underdevelopment not grasp this fact, we are bound to admired the beauty and majesty of its and backwardness. The gulf is deepen­ misunderstand the first essentials nature. This has been one of the hap­ ing between the haves and have-nots. about our institutions. piest periods in our lives." 1111 THE BANK'S WORLD / NOVEMBER 1984 19 Arou UNICEF monthly noted that two years ago Hungary's worsening domestic condi­ tions led to a drastic shortage of bank lines. "The loan re-established the country's ability to borrow medium­ term funds from the market," Euro­ money noted. "With confidence re­ turned, Hungary viewed a World Bank co-financing as the best way to consolidate that improvement. It was oversubscribed at lead manager lev­ el ..." Together with a yen loan equivalent of $1 02 million, in which the Bank participated with $13.3 million equiv­ alent, the Eurodollar syndicated loan was signed in July 1984. The loans were the largest commercial borrow­ Members of World Bank Volunteer Services prepare their store of UNICEF cards, gifts and stationery ing Hungary has ever made in the to be sold i,n the E mezzanine during lunch hour daily until Friday, December 7. Left, Claire Springuel, market; they supplemented two earlier and right, Putzi Reitter. World Bank loans for projects that will help Hungary diversify and ex­ Bad Weather Days pand exports, and further develop its petroleum sector. It's snowing badly, the streets are icy, to permit staff to leave early. This In December 1983, the Institutional the Metro is having problems, and al1 decision is conveyed to managers Investor (International Edition) in­ roads to and from the District are through the offices of the Vice Presi­ cluded among its "Deals of the Year" snarled with traffic. dents. one of the Bank's earliest B-loans for These are some of the weather­ These general provisions do not ap­ agriculture and energy-a $200­ induced conditions we may face in the ply, however, to staff whose managers million Eurodollar loan also to the months ahead as we move into the have designated them as performing National Bank of Hungary, in which winter season. And when they occur, essential services--e.g., building engi­ the Bank had a share of$30 million. II it helps to know what the Bank's pol­ neers, cable and telephone operators, icy is. security force and certain computer When a weather emergency devel­ employees. II ops in the Washington area before the Australian Chapter opening of business, the Headquarters offices will be closed if the news media New Co-financing Techniques Former Bank staffer Dawn Anderson announce that the U.S. federal gov­ has let us know that an Australian Gain Recognition Chapter of the 1818 Society is now ernment offices in Washington will be closed. In this event, staff generally The World Bank's new techniques to being formed. In order to make the will not be required to report to work. promote co-financing with commer­ group viable, membership in the If such conditions are widespread, cial banks continue to gain recogni­ "Southern Cross Chapter" is open to but not bad enough to warrant dos­ tion in the world of international everyone now residing in Australia or ing the Headquarters offices, they finance. New Zealand who has ever worked may still prevent individuals from Announcing the "Euromarket for The World Bank. We didn't learn reaching work on time or at all. Man­ Deals of the Year," the Octo ber 1984 about this in time to publicize the agers can grant up to one-half day issue of Euromoney magazine cited the group's first activity, a reunion in Syd­ emergency leave in these circum­ Bank's $385-million Eurodollar syndi­ ney on October 28, but those who stances. cated loan to the National Bank of would like to become members or be If weather emergency conditions Hungary as one of the year's "Top 10 advised of future events should con­ develop after the opening of business, Loans." The World Bank's participa­ tact Ms. Anderson at 27/40 Archer managers will advise their staff as tion was $35 million. Street, Chatswood, N.S.W. 2067, Aus­ soon as possible ifit has been decided The London-based financial tralia. III 20 THE BANK'S WORLD I NOVEMBER 1984 A Form of FlaHery Alert Guard Foils Robbery While plagiarism may be the sincerest Henry Danso, one of the Brock Secu­ the thief, but thought he could pace form of flattery, the most rewarding rity guards who protects the Bank, is him for awhile. He crossed the street praise comes from people who ac­ a popular man. People like to stop and and stalked him for a block, staying knowledge the worth of one's work. chat with Danso, as everyone calls out in the road shielded from view by Dick Stoddard, Art Editor of Fi­ him, on theirway in and out of the parked cars. The man looked back to nance & Development, who has often building. He is alert too-never for­ see ifhe were being followed. No one found his designs "co-opted" by other gets a face. . was in sight, so he slowed and then publications, was recently honored by Lucky for us because last month stopped. a request from Hamburg, Germany, Henry Danso foiled a robbery. Danso surprised him from behind, for permission to reproduce his work At 10:22 a.m. he was standing on wrestling him to the ground. By this for a worthy social cause. the southwest corner of G and 19th time guards from the H building saw The German publisher of F&D, streets near the Book Store. Two men what was happening and rushed out to G. Kaufhold, a member of the Reu­ on the opposite side of the street not help. tlingen chapter of the Free Democrat­ far from the mailbox just a few steps The police were summoned and the ic Party, in a letter to Bahram Nowz­ down from the E building lobby were man arrested. ad, F&D's Editor in Washington, having what looked like an unfriendly D.C., said he found the September conversation. For his bravery and cunning, Dan­ cover design "very appealing" for a Danso watched. He recognized the so was honored with a citation from specific reason. "After several traffic man with the briefcase, having seen Brock Security. And shortly thereafter accidents in Reutlingen in which chil­ him frequently in the Bank, but had Sgt. Danso was honored again with a dren were killed," he wrote, "the never seen the other who was clad in promotion to Staff Sergeant. members of the local chapter spon­ ordinary street clothes and jogging "This promotion," says Captain taneously formed an action group." sneakers. Gerald Mooney of Brock Internation­ The September cover design on The two men grappled with the al Security Corporation, "has nothing population issues would, Mr. Kauf­ briefcase. The man in sneakers got to do with Sgt. Danso's heroism. It is hold said, serve as a good emblem for hold of it and took off. for his consistent and outstanding per­ the group's work. Needless to say, Danso knew he couldn't overtake formance every day." III permission was granted to use the de­ sign showing representations of par­ ents and two offspring. The design highlighted F&D's article on popula­ tion and development. III WiHeveen Cup Instead of the annual two-day tennis event between the IMF, OAS, lOB and The World Bank, the fate of this year's Witteveen Cup was decided Sat­ urday morning, October 20, between the Bank and the Fund only. Last year, the Fund beat the Bank. This year, however, turned out to be a resounding victory for the Bank which won six of the seven matches-two men's singles, one ladies' single, two j CI> men's doubles and two mixed doubles. ~ Playing for the Bank were Daniel and ~ >­ Maria Coyaud, lean and lean-Louis Ll o Guillou, Lucy Brigish, Gwen Kelley, ~ 0.. Martin Herman, Qamar Ahmad and Bank guard Henry Danso (right) receives a meritorious achievement award from Don Manley, Operations Supervisor, Brock International Security Corporation. .t l Tommy Heintschel. III THE BANK'S WORLD I NOVEMBER 1984 21 itor________________ Around the Bank continued Letter to the Some Days It Doesn't Pay to Get Out of Bed Last month's edition of The Bank's In our eyes, charging to use the World carried an article describing exercise facilities is not very different Noel R . Brouard, a Senior Forestry how MED plans to take over and from charging for a visit to the Hea'lth Specialist with the Central Agriculture administer the fitness rooms in the H Room, and the hundreds of names on Division in Eastern Africa Projects and I buildings. MED's plans to im­ a petition we received only support Department, is retiring from the Bank prove the facilities in the H building, this view further. The Staff Associa­ in December, and he thought ofhav­ install Nautilus equipment, and insti­ tion agrees that the addition ofprofes­ ing the Bank ship his nine-year-old, tute a fitness program are commend­ sional fitness experts to the supervi­ two-door Toyota home to Mauritiu able. What the article fails to mention sion of the program is a positive move; for him. The car has 92,000 miles on is that MED plans to charge users a but we would be prepared to continue the odometer. fee. The resulting funds would be used running the program without them, if "I inquired from Mauritius about to defray the cost of consultants from by so doing we could avoid user fees. the amount I would have to pay to get the YMCA, who will actually run the Exercise Room Steering the car through customs on arrival," exercise program. Committee he said. "The present value of the car The Staff Association believes that Staff Association is estimated at $700, but the cost of the exercise facilities, like the medical freight and insurance government facilities themselves, are basic to the Editor's note: Discussions between officials estimate at $4,500, making a \ maintenance of the staff's health, a management and the Staff Association total CIF (cost plus insurance p~ fact supported not only by the (U.S.) regarding the fitness rooms in the H freight) value of $5,20~N(j-w,1 would President's Council on Physical Fit­ and I buildings are continuing. One of apparently have to pay duty plus sur­ ness, but also by numerous corpora­ the issues to be resolved is fees. An charge at 266.2% of the CIF value tions, etc., where ambitious, free announcement of the outcome ofthese ($13,840), stamp duty at 13.2% ($690) fitness programs are being instituted. discussions is expected shortly. and sales tax at 6% ($310), making a grand total of$14,840 in taxes and duties for a car worth only about $700." One out of every three persons in the Washington metropolitan Needless to say, Mr. Brouard no area is helped by the United Way Campaign. longer plans to ship his old car to Mauritius. II Rosemary Catalana Ian Glenday United States South Africa Staffing Officer/PMD/10/29 Senior Investment Marinela Dado Officer/CEM ED/ I01 15 Philippines Mireille Guigaz Research Assistant/CPD/10/4 France Lester J. Dally Sr. Operations Officer/EA2/1O/1 New Zealand Kathleen Gyarmathy Counsei/LEG/I0/9 United States Sylyie E. Danant Secretary/EMP/ I0115 France Donald Hill Secretary/WAP/IO/l United States Evelyne AbeDard StepIaeD Berkman Midlael A. Duffy Port Engineer/LCP/II/1 United States United States United States Pamela Jeffrey Secretary/ADM/I0/22 Technical Vocational Training Young Professional/YPP/9/28 United States Pedro Alba Specialist/WAP/10/12 Jaber Ehdaie Secretary/PPD/ I0/ 15 Spain Henry R. Burt Iran Jonathan Lyttle Young Professional/YPP/10/1 United States Research Assistant/CPD/IO/4 United States Jacques Baudoay Information Resources Mgmt. Birger Fredriksen Architectural Designer/ADM/I III France Planning Officer/IRM/ll/I Norway Kei Kawabata Public Health Specialist/PHN/9/24 Henrique D. Carneiro Education Planner/WAP/IO/I Japan Rita Beauchesne Brazil Harold Frederiksen Young Professional/YPP/10/ I United States Counsel/LEG/IO/I United States Hoonae Kim SecretarylEAP/I 0/29 Senior Irrigation Korea Engineer/ASP/IO/IS Young Professional/YPP/IO/I 22 THE BANK'S WORLD I NOVEMBER 1984 M. S. NANJUNDIAH has been Senior Staff Appointments named Senior Operations Adviser, Transportation Department, Opera­ PRAFUL PATEL, a Ugandan na­ tions Policy Staff. Mr. Nanjundiah, an tional, has been promoted to the posi­ Indian national, joined the Bank in tion of Program Coordinator, Eu­ 1970 as a Financial Analyst in the rope, Middle East and North Africa Transportation Projects Department. Regional Office. Mr. Patel joined the He became Deputy Chief in the Rail­ Bank in 1974 through the Young Pro­ ways Division in 1972 and continued fessionals Program. In 1975 he was his career in the Transportation De­ assigned as an Urban and Regional partment as Financial Adviser from 1972 to 1974 at which Planner in Urban Division 1, Trans­ time he was named Financial and Railways Adviser. In 1980 portation and Urban Projects Depart­ he became Financial Adviser of the combined Transporta­ ment, and in 1979 he was named Deputy Division Chief, tion, Water and Telecommunications Department. Follow­ Water Supply and Urban Division, Eastern Africa Projects ing organizational changes, he has, since 1983, been serving Department. Mr. Patel's new assignment was effective Oc­ as Financial Adviser in the Transportation Department, tober 22. Operations Policy Staff. Mr. Nanjundiah's promotion was effective October 1. JEAN FRANCOIS BAUER, a French national, has been named Retirees Chief, Energy Division, Western Afri­ ca Projects Department, effective Oc­ tober 1. Mr. Bauer joined the Bank in 1971 as a Young Professional. In 1972 he became an Economist in the Tour­ ism Projects Department, transferring from Division I to Division II in 1973, where he was appointed Deputy Divi­ sion Chiefin 1976. In 1979 he transferred as Senior Econ­ omist to the Energy Department, Petroleum Projects Divi­ JUAN BAZO MARTIN STOLLER sion I, Asia and Europe, Middle East and North Africa, and July 31 October 30 in 1981 assumed the position of Deputy Chief, Petroleum ROBERT PREVOST Projects Division II, Africa and Latin America, Energy September 30 (no photo available) Department. Teresa A. Kirwin Suzanne McLees Michael Keith Phair Surya Prakash Sethi United States United States Canada India Reports Clerk/ADM/IO/15 Operations Asst./PHN/ I0/29 Investment Officer/IFC/IO/2 Investment Officer/IFC/IO/29 Abraham Klippel Aristodemos MichaeHdes Randall E. Powers Martha Sheldon Netherlands Greece United States United States Cash Control Clerk/CSH/ I 0/ 15 Young Professional/YPP/I 1/1 Budget Asst./IRM/IO/29 Secretary/IRM/ I0/29 Zenaida Kranzer Fernando Montes-Negret Sheila Queano Eileen Constance Truman Canada Colombia Philippines United Kingdom Secretary/PPD/ 10/ 15 Economist/LCP/ I0/ I Secretary/EMP/IO/29 Secretary/PHN! 10/9 Estelle A. Lalande T. Mpoy-Kamulayi Hossein Razavi Morag N. Van Praag Canada Zaire Iran Brazil Secretary/WAP/I 0/1 5 Counsel/LEG/IO/9 Energy Economist/ AEP/ I0/ I Disbursement Officer/LOA/I 0/1 5 Andre J. Libert Seran E. Muduroglu Denis Richard Robert Vogel United States Cyprus France United States Section Chief, Travel/ADM/IO/9 Research Assistant/LEG/9/28 Economist/EPD/ I 0/9 Financial Economist/IND/ 10/5 M. Dores Lourenco Muriel Murray Norma M. Rodriguez Michael G. Webb Portugal Canada United States United Kingdom Secretary/EDS/ 10/ I Secretary/LEG/ 10/ I Secretary/LCP/ 10/29 Energy Economist/ASP/I 1/1 Jonathan Lyttle Beatriz Ostria-Calvo Nadie V. Ropiega Magdalen Zee Wu United States Bolivia France India Architectural Designer/ADM/I 1/1 Secretary/EAP/ I0/ I Secretary/LEG/IO/1 Secretary/TRP/ I 0/29 Luis Mascarenhas Bayo Oyewole EvangeHna Sales Hong Zhao Brazil Nigeria Spain China Messenger/ADM/ I0/ I ED's Asst./EDS/ I0/25 Messenger/ADM/ I 0/22 ED's Staff Asst./EDS/IO/22 THE BANK·S WORLD I NOVEMBER 1984 23 • The purpose ofthis column is to answer this to yourself. People who appeal are opportunity to present their case with­ questions ofbroad interest concerning known as troublemakers. An appeal out fear of reprisal." The World Bank/IFe's policies and would hurt you more than the decision The decision whether or not to ap­ procedures. Because ofspace limita­ you are appealing against." Surely, this peal is solely the staff member's. No tions, only questions ofwide interest doesn't represent the Bank's attitude. one's approval or clearance is needed, can be published. If you have such a Otherwise, why bother to have an ap­ and no one should hesitate appealing question, send it to: Answer Line, The peals mechanism? because of fear of reprisals. Any threat Bank's World, Room D-839. . Answer: The Bank is committed to or statement to the contrary violates open and fair appeals mechanisms be­ not only the letter of the policy but * * * cause they are vital to the health of also the spirit in which it has been and Question: I have heard about cases this institution. This commitment is will continue to be administered. If where staff members who consider ap­ set out in Chapter Nine of the Princi­ anyone has reason to fear reprisal for pealing a decision they see as unjust are ples of Staff Employment which appealing, or for considering an ap­ discouraged from doing so by their su­ states: "Staff members have the right peal, I want to know about it, and I pervisors or even by their personnel to fair treatment in matters relating to will take appropriate action. M artijn officer. The argument usually runs their employment. Where disputes Paijmans, Vice President, Personnel along the lines"... you don't want to do arise, staff members shall have full and Administration. As go top esS... F~~INE IN ETHIOPIA: World Bank President erosion of natura~ resources must be A.W. Clausen made the following statement addressed. to Independent Television News, London, "To do this, Africa needs the vigorous earlier this month: "The human suffering support of the international community. as a result of the famine in Ethiopia has External aid has declined--it must go up provoked an intense response from the again. Also, the use of aid needs to be international community. This emergency better planned and coordinated among donors aid is vitally important in the short term to ensure its effectiveness. A sustained to save lives. common effort, by both the African nations "But urgent action is also needed to and the international community, can and meet the long-term crisis of Sub-Saharan will produce results." Africa if future tragedies like the one in *** Ethiopia are to be forestalled. Economic CGIAR CENTER RECEIVES PRESTIGIOUS AWARD: conditions have deteriorated to such a The development of a bean variety resistant degree that most Africans are worse off to disease has earned the International today than they were 15 years ago. Center for Tropical Agriculture (CIAT) the "But the outlook need not be hopeless 1984 King Baudouin award. CIAT, located in if African governments reform their Colombia, received the award at the annual economies to make better use of financial meetings of the Consultative Group on and human resources. Farmers need to International Agricultural Research produce more food, and they will if they (CGIAR), held in Washington, D.C., earlier get the right incentive through better this month. The annual award is given to pricing policies. The general management one of the 13 research centers in the CGIAR of African economies must be improved. The to stimulate agricultural research and to long-term constraints of population growth, highlight the individual contributions of poor health, inadequate education, and the centers to Third World development. The Bank's World, Vol. 3. No. 11. 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 Bankllnternational Finance Corporation. Alan Drattell. Editor; Ellen Tillier. Associate Editor; Patricia Nepomuceno, Assistant Editor; Bill Fraser, Designer.