57326 VOLUME 13/ NUMBER 3 MARCH 1994 ~D International Women's Day is March 8. The Bank has a month-long program of speakers and events scheduled. BANK'SWORLD VoI13/No. 3 March 1994 In this issue Articles A Day to Remember. The origins of International Women's Day; you may be surprised to discover how far back it dates by Elizabeth M . Hayes .... ... ... ....... ....... ... ...... .... ...... ...... .... ... .... ... .... ........ . 3 A Proffie ofJannik Lindbaek. An introduction to IFC's new Executive Vice President by Asimina Caminis ....... .... ....... .. ... .. .... ... 6 A Friend of the Bank. Matt McHugh, Counselor to the PreSident, brings an outside perspective as he helps the Bank negotiate through some critical times ....... ... ...... .... ....... ... ...... .... .... .. ......... ..... .... .... .... 8 On the Occasion of the 50th. It's been half a century since the Bretton Woods institutions were launched. What is the Bank's future agenda? ........ .. ............. .... ..... .... ... ....... ...... ..... .. 10 Working with a Winning Team. Ivan Radan is just as enthusiastic about the Bank as he was on his first day at work, more than 30 years ago ....... ....... ...... ......... .... ........ ........ ... .. ........ .... ...... .... 11 Career Advice for Bank Spouses. A look at the new Family Career Transition Program by Lisa Costa ... ....... ..... ....... .. ... .. ... ... 16 Who's Afraid of the Auditors? No need to be; they're here to help by Anwar Ravat .. .. ... ................. ... ... ........ ............... .. .. ....... ..... .. .... 18 DejJurllllellls On the Record. Managing Director Sven Sandstrom on Development Issues of the '90s ........ .... ... .......... .. .. .. ............. ..... ....... ....... 13 Staff Association. Eric Swanson on "Working Together" .... ... ...... .. .. ... . 20 Around the Bank ... ...... .. ... .......... ... .... ....... ... .. ...... .. .... ... ........ ....... ...... ..... 21 Staff Changes .... ......... .... ...... .. ... .... ...... ...... .. ... ... .. ..... ... ... .... ... ...... ........ .... 24 AnswerLine .......... ... ... ............ ... ........... ... ... .. ........... ......... ....... ... .. ... ........ 27 Cover Dayak Woman with Woven Hat. Kalimantan, Indonesia. Photo by Curt Carnemark The Bank's World is published monthly in Washington, D.C., by the Information and Public Affairs Division of the World Bank for all employees and retirees of the World Bank Group, 1818 H Street, N.W., Room T-8049, Washington, D.C. 20433. Fax 202-676-0648 Jill Roessner, Acting Editor Morallina Fanwar-George , Editorial Assistant Beni Chibber-Rao, DeSigner 2 A Day to Remember International Women's Day - March 8 by Elizabeth M. Hayes If Amilcare Ponchielli were alive today, perhaps we could persuade International Women's Day is being celebrated him to compose a sequel to the at tbe Ba"kby a montb-long speaker series orga­ _melodic "Dance of the Hours" from his opera, La Gioconda. The sequel nized by tbe O.fflce oftbe Senior Adviser on would be called "Dance of the Women's Issues. Topics presented will include Days" in tribute to the increasing issues of concern for women in tbe workplace as number of "special" days in a year. w eD as issues ofglobal concemfor aD women. Take a look at a calendar showing lrifof7lllRlon concerni"g tbe various activities can them all-frivolous, historical, political, altruistic, religious, and befound in the Weekly Bulletfn,All-in-l, and 0" romantic. There are even directo­ p osters around the Ba"k. AU s~--botb male and ries of special days in the Reference female-are welcome. Section of libraries now. Some are famous worldwide, others found only in certain countries. One special day is International be universally ratified by the year the year 40 A.D. in Viet Nam, when Women's Day, March 8, already 2000), and the Fourth World two women, Trung Trac and Trung known abroad but, in the United Conference on Women, to be held Nhi, organized a peasant revolt States, known mostly to women's in Beijing, China, in 1995. against foreign oppression, hoping groups and international communi­ We surveyed a random selec­ to overthrow their country's ties. If people are confused about tion of people of different ages and Chinese occupiers, especially the its existence and date, perhaps asked them what they knew about tyrant, To Dinh. He was forced to that's because there are so many International Women's Day. Many flee to China in disguise and the other days to be observed, some of had never heard of it. Yet, Interna­ Trung sisters and their female army which are legal or public holidays tional Women's Day is not a continued to threaten the govern­ and some already devoted to recently conceived occasion to rival ment for four more years until women's rights and interests. Mother's Day, Independence Day, reinforcements from China eventu­ In addition to designated days, Valentine's Day or Groundhog ally defeated them. To escape we have Women's History Week, Day-though it does fall during capture, the sisters chose suicide. They National Women's History Month, Women's History Week which became mooels of national courage and International Women's Year. begins the first Sunday in March. and an example to women to take a We also find such women-related International Women's Day is stand against oppression. In the 18th entities as the Commission on the recognized by women's groups century, they were posthumously Status of Women, the U.N. Decade around the world. awarded titles of nobility. for Women, the 1979 Convention How did it come about? Some There have been plenty of on the Elimination of All Forms of sources contend that the initial instances of women demanding Discrimination against Women (to inspiration may date as far back as rights and recognition in other 3 The Age of Brass-or the Triumphs of Woman's rights. Published by Currie r & Ives. Reproduced from the Collections of the Library of Congress. countries down the years. A persevered and, by March 1860, holiday. In the United States, a convention in Seneca Falls, New were able to form a union which huge protest by another branch of York, in 1848, became another led to demands for women's the New York City female garment rung in the ladder of events that led suffrage and child labor protection. workers took place on Sunday, to International Women's Day. At In accordance with a declara­ March 8, 1908, demanding the vote this first formal women's rights tion by the Socialist Party of and other rights. convention in the United States, the America, the first National Women's The demonstration attracted the resulting Declaration of Sentiments Day (as it was then called) was attention of Clara Zetkin, a labor and Resolutions became the first observed across the United States leader in Germany who, from 1890 major document to define the on February 28, 1909. It continued to 1912, was largely responsible for issues and goals of the 19th century to be celebrated on the last Sunday the inclusion of women's rights in women's rights movement. Mod­ of that month through 1913. the German Social Democrat Party's eled after the Declaration of Meantime, the holiday had official program. She was unrelent­ Independence, it stated "women's been celebrated in socialist coun­ ing in speaking and writing on demands for legal, economic, social tries and other places outside the women's issues at home and and political equality." United States under the names of abroad, especially on suffrage, and The next event credited with Women's Day, International she published many articles on the focusing attention on women's Socialist Women's Day and Interna­ su bject. An outstanding propagan­ issues, especially those of working tional Working Women's Day. It dist and speaker, Clara Zetkin was women, was an 1857 demonstra­ was under the latter name that the a close friend of Lenin and of the tion in New York City. Female day was acknowledged by Lenin in young Polish revolutionary, Rosa workers in the garment and textile annual speeches prepared for the Luxemburg. industries protested low wages, occasion. Today, women workers The first International Socialist long hours, and unreasonably in Russia and the People's Republic Women's Conference was held in heavy workloads. Although of China receive gifts and flowers Stuttgart in 1907, when Clara trounced by police then, they on March 8, and it's still a public Zetkin's role as leader of interna­ 4 tional socialist women was formal­ the use of nuclear arms. On the More than 3,000 disgruntled ized. Another large meeting, the same day, in a separate event, Russians took part in "the march of Second International Congress, was Javier Perez de Cueller, then the empty pans," calling for an end held in Copenhagen, Denmark, on Secretary-General of the United to high prices, food shortages, and August 27, 1910. It was here that Nations, announced the first discrimination against women, who Clara Zetkin called for a special day appointment of a woman as Under­ represent 78 percent of the to be annually dedicated to women Secretary-General of the UN, Lucille country's unemployed. around the globe. "Henceforth, Mair of Jamaica. European Community Commis­ March 8 should be declared In 1988, tear gas and rubber sioner Padraig Flynn of Ireland, International Women's Day... to bullets marked the day in Israel's speaking last year, regarded commemorate the historic struggle occupied territories, when Palestinian International Women's Day as a to improve women's lives." Recog­ women led demonstrations to mark fine opportunity to celebrate nition of the day, first celebrated in International Women's Day in several women's contributions to our 1911, now extends to all women. villages and towns. society and to strive for greater March 8 was chosen to pay tribute People in New Haven, Connecti­ equality of opportunity for them in to the garment workers' protest in cut, chose International Women's Day several areas. However, an Irish New York on that day in 1908. in 1989 to showcase the work of Times journalist in Dublin had a In addition to women's rights, women artists in various forms--music, different approach. She declared Clara Zetkin also devoted much paintings, sculpture, drama, photogra­ herself fed up with International attention to public education and phy and the healing arts, in addition to Women's Day and called it "an opposition to war. In 1911, Interna­ story-telling and ftlms by black ftlm­ annual display of sanctimonious .tional Women's Day was marked makers. In this year also, Soviet self-indulgence, a sacred, unques­ for the first time in Austria, Den­ cosmonauts sent best wishes to tioned tradition, a sort of radical mark, Germany and Switzerland, women everywhere from their space­ post-feminist Mother's Day that all where a million women and men craft and "wished they could have sent women are presumed to support.. .! attended rallies. A week later, a flowers and a cluster of stars." resent the implication that my tragic factory fire in New York City The day was recognized in consciousness is so enfeebled that took the lives of 140 working Rome in 1993 with a series of it needs to be regularly 'raised.'" women. This had an important meetings. Between the meetings, a International Women's day is effect on labor legislation in the demonstration took place in the not only marked by local women's United States. The disaster has been city center "to call for strict respect grou ps, it is also commemorated at remembered in later years on for women's rights." The three the United Nations whose many International Women's Day. Italian trade union centers of the initiatives to improve conditions for In 1917, during World War I, International Confederation of Free women have resulted in the Russian women struck for "bread Trade Unions (ICFTU) invited all creation of an international legal and peace." When the Czarist members of the ICFTU Women's framework to achieve legal equal­ government collapsed, a provi­ Committee to Rome to celebrate ity. U.N. bodies are continually sional government granted women March 8 and discuss working striving to raise public awareness the right to vote. The historic women's issues. The same day, the by attempting to change conditions Sunday fell on February 23 on the European Women in Decision­ and attitudes which prolong Julian calendar, which happened to Making Network in Brussels asked discrimination. The main focus of be March 8 according to the for assurances that women would this year's International Women's Gregorian calendar. Since then, the be better represented in political Day at the U.N. will be the 1995 concept of International Women's and economic decision-making. world conference in Beijing which Day has spread in support of In Germany, where there are is to deal with, among other women in both developed and more women than men, a speaker important issues, all forms of developing countries. at the 1993 celebrations said, "In violence against women. Whether International Women's terms of political representation, The World Bank will celebrate Day is celebrated by small groups women will not bring their majority International Women's Day with a or city-wide, there's great variety in to bear until they involve them­ program of events continuing the way people choose to observe selves more deeply in politics." In throughout March (see box). it, depending on the country or the many European countries, a major current social problems. For issue that year was maternity rights Editor's note: Elizabeth Hayes instance, March 8, 1982 marked the for working pregnant women. retiredfrom the Legal Department beginning of a year-long angry International Women's Day in last year and is pursuing a new protest in New York City against Moscow in 1993 was a noisy affair. career as a free lance writer. 5 APrordeof Jannik Lindbaek IFC's New Executive Vice President by Asimina Caminis "I am not a barricade-stormer," Executive Vice says Jannik Lindbaek, IFC's new President from 1975 Executive Vice President, "but I to 1976, and as believe change is necessary. An Group President and institution like IFC must be con­ Chief Executive stantly changing if it is to keep up Officer from 1976 to with the world." 1985. From 1962 to The 54-year-old Norwegian, 1975, Mr. Lindbaek who has spent most of his career in was with Norway's the private sector, is taking a Vesta Insurance thoughtful, pragmatic approach to Group; he became changing IFC, however. First, he Executive Vice wants to "see how things work." President in 1972. He And since he arrived in Washing­ has served on the ton, D.C.-on New Year's Day, boards of several appropriately enough-he has been companies, induding involved in a round of meetings Aftenposten, Norway's with IFC's Executive Directors and leading daily newspa­ staff to hear their views on IFC's per; Capital Markets operations and present his own. Insurance Corp. (New He speaks admiringly of the York); Vesta Insur­ achievements of his predecessor, ance Co.; and Det Sir William Ryrie, who retired on Norske December 31, 1993, and believes Luftfartsselskap (the that IFC is "doing the right kinds of Norwegian partner in things" to promote private sector SAS). development and "doing them Mr. Lindbaek is well." But there is a need to )annik Lindbaek not a stranger to Photo by James Rourke "develop a frame of reference, to development issues, see how IFC's activities fit into the however. NIB, a development policies of our businessman's perspective to his multilateral institution headquar­ member countries," he says. This new job. From 1986 until he joined tered in Helsinki and owned by the could help avoid long discussions IFC, he was President and Chief five Nordic countries-Denmark, of individual projects, improving Executive Officer of the Nordic Finland, Iceland, Norway, and efficiency. Investment Bank. From 1975 to Sweden--earmarks about 20 Efficiency is a recurrent theme 1985, he was with Norway's largest percent of its annual disbursements in Mr. Lindbaek's remarks. Perhaps insurance company, the Storebrand for projects in Central and Eastern it is beG1.Use he brings a Insurance Group, serving as 6 Europe and developing countries. (IFC recently approved its first-a specialized in treating children with (The other 80 percent goes to wastewater treatment plant in Down's syndrome, is in Norway, projects in the Nordic countries.) Mexico). "These can be very working with teenagers from NIB was only 10 years old profitable ventures, provided we go immigrant families to help them when Mr. Lindbaek took the reins. into them with the proper business improve their language skills. She He built a strong organization with attitude," he states. will be joining Mr. Lindbaek in a loan portfolio of more than $ 5 IFC's size is a serious con­ Washington with the youngest of billion and improved profitability. A straint, however. Mr. Lindbaek says their four children after the school credit review of NIB carried out by bluntly, "It is hard to do all we are term. The Lindbaeks have two Moody's after the credit ratings of expected to do. We will have to grandchildren--one of them born NIB's member countries had been look very hard at the issue of our after Mr. Lindbaek's departure for downgraded confirmed NIB's capital by the end of the 1990s. the United States. financial soundness-and its triple­ But, in the meantime, I think we In addition to hobbies such as A rating. By the time Mr. Lindbaek can stretch ourselves a bit to use fishing, skiing, sailing, and bridge, left, NIB had about 100 employees, our capital more efficiently." This Mr. Lindbaek "dabbles" in classical $2.24 billion in share capital, and means not only boosting profitabil­ music, and plays the piano, guitar, $8 billion in assets. Annual dis­ ity by "putting good new invest­ and accordion. He has found ways bursements averaged between $600 ments on the books" but also to use his financial talents in the million and $800 million. containing costs. service of music-he and some One of the milestones of Mr. Mr. Lindbaek stresses that his fellow music lovers were among Lindbaek's years at NIB was the emphasis on profitability and the initiators of the Queen Sonja establishment of two sister organi­ efficiency does not mean abandon­ International Music Competition, zations. The Nordic Development ing IFC's poorest member coun­ Norway's first such competition. Fund, an IDA-type institution that tries, where projects often carry Before joining IFC, Mr. Lindbaek sat makes concessional loans to the greater risks. "We need a balance on the board and served as Chair­ poorest countries, is funded by of risk in our investments-we man of the Finance Committee; he direct capital contributions from the wouldn't be doing our job if we was active in fund-raising for the aid budgets of NIB's member overlooked the poorest countries," Competition, as well as for the Oslo countries. The Nordic Environmen­ he declares. Philharmonic Orchestra, of which tal Finance Corporation, whose One area in which IFC is likely he was Vice Chairman. capital is funded through the to see some changes: women in After graduating from the environment ministries of member senior management. NIB's manage­ Norwegian School of Business countries, finances environmentally ment group consisted of two Administration and Economics, Mr. sound projects in Central and women and three men, and a Lindbaek spent a year at the Eastern Europe. NEFCO's first number of important positions in University of Kansas in Lawrence as project-a cement plant in Esto­ NIB were held by women. Al­ a Fulbright Scholar. "They had a nia-was cofinanced by NIB and though Mr. Lindbaek says that good football team that year," he IFC. "change can't be forced by impos­ smiles. He enjoyed a truly Ameri­ The environment is a subject ing quotas," he is committed to can experience, living in a fraternity dear to Mr. Lindbaek's heart. "working conSciously with the house with three Americans-with During the past three years, NIB problem" and would be surprised if whom he is still friends three disbursed $750 million in loans for there weren't more women in decades later. environmental protection projects. management by the time he leaves Mr. Lindbaek says he feels Four years ago, NIB, in collabora­ IFC. In his experience, "Women "privileged" to have the opportunity tion with the World Bank, the bring a different outlook to many to run IFC. He is impressed by the European Investment Bank, and the situations, including business "IFC spirit-something you don't European Bank for Reconstruction situations, and having the benefit of find on the balance sheet. There is & Development, set about identify­ several outlooks improves the a will to do something extra, to do ing the worst polluters of the Baltic quality of an institution." what it takes to carry out our Sea. A clean-up program, to be Mr. Lindbaek's obvious com­ mission." completed in 2012, has since been mitment to his work is balanced by launched. Mr. Lindbaek would like his insistence that "there are other Editor's note: Asimina Caminis is to see IFC become more active in dimensions to life." He talks with Corporate Communications Officer, financing environmental projects equal seriousness about his family. fPC. His wife, Grete, a speech therapist 7 A Friend of the Bank Matt McHugh M att McHugh is the type of consider that instead. "Then, Mr. person who likes to look ahead. Preston asked me to join the Bank. And what he sees for the Bank is a I couldn't pass up the opportunity." bright future built on the founda­ Though he's been here almost a tion of a positive past. But to reach year, he still considers himself the that promising future, the Bank new executive on the block. "It's a must negotiate through some large organization," he says, "so I critical times. His job is to help the had to spend some time learning institution do just that. how it really works. I did some Mr. McHugh recently moved traveling, went to Indonesia and offices to the newly renovated D Bangladesh and saw projects there building so they could be in that the Bank is involved with. I proximity to Bank President Lewis also went to Western Europe to get Preston. Mr. McHugh is Counselor to know some of the parliamentar­ to the President. ians whose opinions are important Although he is fairly new to the to the Bank. It was all part of Bank, having arrived in May 1993, furthering my development educa­ he is no stranger to development tion." issues. From 1975 to 1992, he was First impressions matter and the Democratic Representative for Matt MCHugh Matt McHugh's were favorable. the 27th and 28th congressional "The staff here is extraordinarily districts of the State of New York in talented. There's a very high the U.S. Congress-and his resume standard of quality, and a strong testifies to an array of concerns. He Subcommittee is responsible for motivation to help the disadvan­ was Chairman of the Arms Control drafting and enacting the annual taged of the world. It's that motiva­ and Foreign Policy Caucus and also foreign aid appropriations bill in tion that attracts people, that makes served with the Select Committee the U.S. House of Representatives. them want to come and work for on Children, Youth and Families. "I was always a supporter of the Bank." Unfortunately, this His interests ranged from the the Bank," he says. "I was familiar opinion is not necessarily shared by international to the rural, including with its work, but not from the the world at large. "The outside production, consumer and environ­ inside." impression," he notes, "is that the mental issues. When he retired from Con­ Bank is a big, arrogant institution. During 15 of his 18 years on gress, he had accepted a vice­ There's a gap between what the Hill, Mr. McHugh was a mem­ president position at Cornell motivates the people here and the ber of the Subcommittee on University with the understanding outside view of the Bank. It's Foreign Operations, Export Financ­ that if something truly fascinating in possible that some of the criticism ing and Related Programs. The Washington came along he could is legitimate, but the truth is that 8 the Bank is facing increasingly Bank are doing in terms of public difficult challenges. Its role simply affairs. We should try to coordinate isn't well understood outside, and our outreach efforts. " when you take into consideration The Bank at Fifty Mr. McHugh will also play an the fact that we have more critics important role in planning the than ever, that they're better The world was a very commemoration of the 50th organized than they've been, and different place when the Bretton anniversary of the Bretton Woods that a lot of our donor governments Woods institutions were created Conference, which is observed this have greater constraints when it half a century ago. Today, as we year. "It's a milestone, " he says. comes to aid, you're left with a very mark our 50th anniversary, we "The world is changing, and now is real sense that what we have now have an opportUnity to add our an appropriate time to ask, 'What is is a more vulnerable Bank." voices and ideas for the most the relevance of these institutions?' Hence his assignment. "As effective ways to carry out the It's an opportunity for us to take Counselor to the President, I have a Bank's work. stock and look ahead. Some groups view of the whole. The utility of Where shall we go from would like us to change the way having someone like me around is here? What should be our we operate, and we should work that I'm not tied down by manage­ priorities? How can we ensure with these groups. The 50th will ment responsibilities. I can be that the enthusiasm which has see us get involved in events in moved around from problem to distinguished the work we have which non-governmental organiza­ problem and I bring an outside done in our rust five decades is tions (NGOs) and others will perspective. And my position here as evident in the future as it has participate." can be defined day by day. As been in the past? What of the critics who say, Counselor, I take on whatever the The Bank wants your "Fifty years is enough"? Matt President wants me to." thoughts, your opinions, your McHugh smiles. "Some take the His main function at the proposals. Please send them by view that the Bank has no role in moment is to serve as Mr. Preston's All-in-l to Sarwar Lateef no later the future. Now obviously, there's liaison with the External Affairs than March 31. not much hope in finding common Department (EXT) which recently ground with those organizations. moved from the Personnel and But most groups don't fall into that Administration complex to the category. Office of the President. External institutions, for example, do not "You know, it's interesting," he Affairs is, among other things, in engage in that most modem-and says, "many of the criticisms leveled charge of contacts with the media, effective-means of disseminating at us come from what some parliamentarians, academics, the word: direct paid advertising. organization learns of our mistakes business people and the general As a result, many public affairs from our own reports! Being public worldwide. "We have to do initiatives have often been reactive. realistic, no one can deny this a better job of communicating our Nor does the Bank's public affairs institution has played an important relevance to the rest of the world. budget match those of many role over the last 50 years. We We have to ask ourselves: Are we private large institutions, but, says should be proud of our accom­ as effective as we should be? We Mr. McHugh, "the Bank has to plishments, and without being have a long way to go in terms of anticipate key events, key policy defensive. In fact, the international sending out the right messages, and decisions and projects. We can't community as a whole should be the problem is that it's difficult to afford to be strictly reactive any­ proud of what it's done. We can convey the essence of the Bank's more. In order for us to be effec­ use the anniversary to benefit from work with soundbites. We have to tive, we have to have a clear the opinions of others. reduce it, put it in very simple picture of what we want to convey "This is not the time to circle terms: this is who we are, this is to both our lending and borrowing the wagons. We have to look what we do, and this is why we are members." One example of this is ahead to the things we can improve relevant." the development of public affairs upon. We shouldn't be afraid of Yet, some avenues open to strategies geared to specific nations, debate. Many others share the same most organizations seeking to gain particularly in Europe. "Also," says motivation we have: helping widespread recognition for their Mr. McHugh, "EXT should be improve the lives of the poor. The work are simply not available to looking at what other units in the only argument is how best to do the Bank. The Bretton Woods that." 9 In1944, the Bretton Woods Confer­ ence launched what might arguably be called two of the more important institutions of post World War II: the International Bank for Reconstruc­ tion and Development-later dubbed 'the World Bank' by report­ ers covering the event-and the International Monetary Fund. On the Occasion "The 50th anniversary of this event is a unique opportunity to step back and reflect on the current and of the 50th future role of the Bank," says An Event Worth Marking Anneane M. Choksi, Vice PreSident, Human Resources Development and Operations Policy. "We want to revisit the unfinished development agenda and see how the Bank should respond to the challenges ing a vision for the Bank," says Mr. Sarwar Lateef, in the Operations that lie ahead in the 21st century." Choksi. "We plan to have some Policy Department, heads a small 50th Mr. Choksi was appointed by background papers, and these should Anniversary Secretariat coordinating President Lewis Preston to head the generate a lot of discussions. We also the work on four key areas: Bank's 50th anniversary effort. "We have brainstorming groups throughout • issuing a statement of purpose also think that this is a good time to the Bank involving interested staff. And for the institution, spelling out the strengthen further our dialogue with we will be interacting frequently with Bank's objectives, values and future the institution's key stakeholders," he the Board. There is a very high level of direction; adds . "By doing this, we can de­ interest within the Bank." • based on papers being pre­ velop a broad agreement around the Referring to the ftrst 50 years, Mr. pared throughout the Bank, develop­ Bank's current and future develop­ Choksi adds, "We can be proud of our ing by June a paper setting forth the ment agenda. And we must listen development record and of what the Bank's future agenda; and be responsive to the serious Bank has done since its creation. • coordinating with other concerns and criticisms about our Despite the criticisms of the Bank­ organizations and groups, such as the work from the development commu­ some of which have been legitimate, Bretton Wocxls Commission, that are nity at large." others less so--the Bank has shown also marking anniversaries; and The Bank plans to mark the itself to be a flexible and responsive • making preparations for the event during calendar 1994. The institution all over the world-from Madrid Conference. anniversary program will focus on: helping with the reconstruction of Mr. Lateef notes that the anniver­ • better articulating the objec­ post-war Europe and Japan, to sary "has to be a collaborative process. tives of the Bank and a vision of its supporting the "green revolution" and It has to draw on the views of all staff, future role; the ftght against famine in South Asia, management, and shareholders. "All of • the joint Bank-IMF conference to assisting with the economic miracle us have strong views about the Bank, on the Bretton Woods Institutions, in East Asia, to helping eradicate and this is a unique opportunity to to be held in Madrid September 29 riveIblindness in West Africa, to help build a consensus around the and 30; collaborating with the Latin American institution's future agenda. • following events organized by nations to overcome the debt crisis. But, referring to the vision paper, others and, where desired and ap­ But we have to accept the fact that the he warns, "It's intended to provide the propriate, participating in their work; next 50 years aren't going to be easy broad directions for the institution but In addition, there are a number ones. In fact, in the next decade, the it will not be a strategic planning of exhibits, displays, events and unftnished development agenda will exercise nor a roadmap. No plan can other staff-oriented activities being present us with new problems and realistically sUIVive more than a year or developed. More information on perhaps some new responsibilities, and two, given the rapidity of changes these aspects of the 50th anniversary we'll have to be even more active and taking place. So we end up asking one will be announced in future issues of flexible than we've been. How we main question: 'How can the Bank Banks World. manage change in a complex and remain a flexible and innovative "It's very important that Bank uncertain world will be an extremely institution in the face of a rapidly • Board and staff be involved in articulat- important determinant of our success." changing external environment?" 10 Working with a Winning Team Ivan Radan says service is in his blood byJill Roessner Ivan Radan, left foreground , with Bank President Lewis Preston and some o f the Print Shop's winning team. Photo by Gene Nunez O ne Autumn morning in 1962, in the Yugoslav army. But when an in the pre-dawn chill, the ship uncle, already established in "Croatia" steamed up the Hudson America , offered him the chance to River. It had taken about three come to this country he didn't weeks to reach New York harbor, hesitate. "I knew this was the land since leaving Rijeka in what was of opportunity," he says. then Yugoslavia, stopping off en He'd never met his uncle, but route in Spain and Italy before they found one another at the crossing the Atlantic. It carried dock, and set off on the drive to cargo and some passengers, most Maryland where the uncle and his of whom now crowded the deck family lived. Ivan spoke not one for a first glimpse of the Statue of word of English, but immediately Liberty. Among them, a 23-year-old set out to remedy that. Some of his Croatian who, like millions of cousins had young children, and others before and since, was their newly arrived relative pored enthralled to finally see the famous over their alphabet books and symbol of freedom. primers, studying along with them. Despite his youth, Ivan Radan There was an Americanization had already worked for a number School on Connecticut Avenue­ of years as a sailor and had served where the Hilton Hotel is now 11 located; he enrolled. He tried to nouncing his name the Slavic way. and Personnel called him in for a earn his keep by doing odd jobs, It was that pronunciation that test, even though he'd told them he but he needed to find proper work. eventually caused him to be known didn't know how. "I said, 'Ladies, I Family friends helped. to most people as John. A former have never seen a typewriter in my The following April Ivan colleague had trou ble with "Eevan," life, but I'm willing to learn ... '" applied to the World Bank. Well, claiming it sounded like a girl's Back to night school. This time he that's not strictly accurate. Friends name. went to Northwestern Junior High filled out the application form for We're sitting in his office in the for two months, at the end of him. When Personnel arranged an New Main Complex. Mr. Radan is which he was qualified to run the interview, his uncle had to accom­ a unit chief now, heading up the addressograph machine. pany him to serve as interpreter. Print Shop. Being a messenger, he "If you do your best, set goals, Something about the young man's says, inspired him to try even you can get on." That was his creed enthusiasm must have appealed to harder to become fluent in English. then, just as it is now. Running the the recruiter. Ivan was told that as "I went from office to office," he addressograph machine was fine, long as he passed the medical recalls, "and there were so many but it didn't have the potential for exam, he could start work and pretty ladies who talked to me. career development he wanted. A would be trained as a messenger. They might even have been flirting year later, he was offered a position His uncle explained all of this to but I didn't know." So, every day in the Print Shop. He started out at him, and Ivan couldn't believe his he made his deliveries, and every the front desk and spent a year good fortune. They were going to evening he went to the American­ there. Then he moved into more train him-and pay him $2,800 a ization School to continue his complex work involving the prep year! "I should be paying you for English lessons, eventually winning press and bindery. Between 1967 the training," he blurted out, "but I a prize for an essay, "My First and 1981 he worked the night shift don't have any money." Since he Impression of the United States." and was named foreman in 1972. spoke in his native tongue, no one For that, he was awarded 24 He didn't mind the night work-it was able to take him up on that gramophone records of American paid an extra 15 percent, and he offer. The next surprise came when songs, which also helped his also became assistant to the night he discovered he was expected to language studies. And maybe one manager, then manager himself. By work only five days a week-not of those young ladies was flirting then he'd progressed all the way to the seven to which he'd been with him because in May 1965 he level J. accustomed as a sailor. After he'd married Estela Edgar from Peru, Ivan Radan's success has been been given a clean bill of health, a who worked in the Translations quite impressive for a young man telephone call advising him he Department. who arrived on these shores could start work came on a Friday The Bank's rules at the time without money or prospects. He morning. He was asked when he'd precluded married couples from still likes to sail, though it's a hobby like to report for duty; he could both working in the institution­ nowadays, along with soccer and start the following Monday if he one of them had to leave within a he's a "fanatical Redskins fan." chose. Ivan wasn't prepared to wait year. "Today, people will think I Although he's had no formal that long. He arrived at the Bank was a chauvinist pig," Mr. Radan training in management, the Bank that same Friday, and he's been says, "but my wife had to go. The has sent him on some courses and here ever since. man had to provide for the family." he seems comfortable in the role. More than 30 years have They have raised two beautiful "Service is in my blood," he says passed. A lot has changed. But Ivan daughters, Kathleen and Maritza. proudly. Radan's enthusiasm for the World Maritza has fulfilled one of her There are 21 different nationali­ Bank hasn't waned at all. He father's early dreams-she is a ties among the Print Shop staff of speaks English now, with a bit of ship's purser. 33 people. "I'm just their coach," he an accent to be sure and, recount­ After his first year in the Bank, claims, "they're the players-and I ing his story, he has a disarming Mr. Radan moved from his messen­ have one of the best teams in the habit of referring to himself in the ger job to the Distribution Unit. "It Bank. Ivan feels he's working with third person. "Bevan was the oldest was a step up, from level A to level a winning team. Without them, I'd of five children," he says, pro­ B," he remembers. To get the job, he was supposed to be able to type be nowhere." • 12 Development Issues ofthe '90s We sometimes forget that the past 25 years have seen more progress in improving people's lives than any comparable period in history. In the developing countries, life expectancy has increased by 50 percent; infant mortality has been halved; per capita incomes have doubled. The pace of this developing-country progress has been extraordinary. For example: during the periods of their most rapid growth, the United States took nearly 40 years (1913-1950) to double per capita incomes; Canada took 42 years (1913-1955); and the United Kingdom took 60 years (1780-1840). The most startling example of development progress is East Asia where, over the last quarter century, per capita incomes have quadrupled, poverty has been reduced by two-thirds, and the region has become a major engine of growth in the global economy. China's recent economic performance is weB known-with annual growth rates of around 10 to 15 percent. What is less well known is that India's per capita income grew at 3 percent annually in the 1980s--three times the rate of the previous two decades. Over the last few years, many Latin American countries have transformed their economies and become magnets for foreign investment. Even in Sub-Saharan Africa­ where growth has lagged and real incomes have declined-social indicators Sven Sandstrom have improved since independence. And yet, despite this progress, an enormous development challenge remains. Over a billion people-a fifth of the world's population-are still in absolute poverty, struggling to survive on less than a dollar a day. Child D Uring a recent visit to Canada, mortality rates in the developing countries are still 10 times higher than in Managing Director Sven Sandstrom the developed countries. Maternal death rates are 30 times higher. Seven met with various government, NCO million people die every year due to easily preventable diseases, such as and media representatives. He was malaria and tuberculosis. also invited to address a symposium Nearly half the population of Sub-Saharan Africa-about 200 million for the new members ofthe Cana­ people-remain in poverty. The proportion is about the same for South dian Parliament. Here are excerpts Asia-although the actual number of people in poverty is much larger (about from his remarks: 560 million). Then, of course, there is the massive challenge of transition in In times of recession and fiscal the former Soviet Union. restraint, there is always a healthy Yes, more people have been lifted out of poverty over the last genera­ tendency to question development tion than in any previous generation. But-largely due to high population assistance: Has it worked? Does it growth rates--there are also more people in poverty today than at any time really help the poor? Is it cost in history. In fact, the income gap between rich and poor countries is effective? widening: over the past 30 years, incomes in the countries with the richest 20 By and large, I believe the percent of world population grew nearly three times faster than in those answer to these questions is "yes." countries with the poorest 20 percent. 13 The failure to address this fundamental issue carries and openness, there are now many more negative consequences for rich and poor countries alike: interested-and involved. For '-'""."".. ,1-',....... it threatens economic expansion, increases environmen­ communities, environmental groups, and the media. tal and exacerbates unemployment and migra­ From a development we saw this crystal­ tion problems total number of and tnl,rU"'.lnt.;: lized at the Earth Summit in 1992, where NGOs and in the world is estimated at somewhere be­ environmentalist" were a force in their tween 40 to 60 In poverty is not just a views not only to their country representatives in Rio, but a global issue. but also-via fax and electronic mail-to their ments and publics back home. Two Trends: Globalization and Participation Increased participation is a positive and healthy The rapid pace of in our world-political, trend. It means more more ideas and '-''-'--'U'-'''U'-, and this point. Two debate on how assistance should be used. major trends, in particular, are emerging: the trend toward The sad fact is that too many development strategies economic "globalization" through the integration of trade have not involved the people affected by them. As and and the trend toward "participation"­ a too many development have not been increasing pluralism in political and economic decision­ sustainable. Most governments and development making, more openness, and empowerment of people. institutions now understand that more participation will Economic globalization is at a faster pace than lead to more effective development. This is '-'-'A .....".AA ever before. Trade between the developed and the develop­ true of the World like many others, we are ing countries now accounts for a ftfth of the world total. grappling with how to design more participatory )Q"r<:>I"""nn country exports are to increase almost twice a" fa"t the 1990s a" the two We must aU ..""r.""'..... "'."" that decades. Those countries are also the fastest-growing participation is, first and foremost, a government markets for many nations--induding the United responsibility. In the countries, this is a for And as you the Pacillc Rim is '--jU''-''''Ul'-JU which strikes at the very heart of gover­ already a major trading area for Canada. The completion of nance and issues of the poor having access to land, the Round and the establishment of the World and services. It also strikes at resource allocation. )rrr·']ni7'lt·;r.n will accelerate this trend. Military in the developing for Private-sector investors are taking advantage of the ,--"",-,''''1][1-'1'_, has quintupled over the last three decades-­ expanded in the developing countries. Private and continues to exceed expenditures on health and Hows to the developing world have risen more than education. Increased will lead to more two-and-a-half times since 1990. In 1992, for the flISt time in resources being on poverty because a the volume of flows ($103 wac" that is the fundamental issue for the vast majority of than total aid Hows ($55 twice as in the world-and for us all. large, in fact. This does not mean that development assis­ tance is no longer a" important a" in the past. On the U"""'UP,rhT Reduction Is the ~i.n. ...iihT contrary, increased aid Hows are more critical than ever--to We have learned a great deal about how poverty the poor countries become and thus be can be reduced. a two-track strategy is able to attract private investment; and to help attack pockets needed: sustainable economic growth and investment in of poverty within those countries which are '-'-""1-,..... ""'-' people. Both tracks are necessary; one without the other This much is dear: for resources and is not enough. for market" has never been will intensify in the First, growth: no country has managed to reduce future. But globalization is not a zero-sum game. The poverty or make social progress without it. dC'veilJPing countries will through able to expand t,XlpeI1erlCe also that the of exports, attract increased investment, and raise living growth is as important as the rate. Efficient, labor- standards--provided to their intensive which provides jobs and income for economies open and And the the poor is the most effective way to reduce poverty . countries will gain through being able to export into .This was very much the approach followed, for ex- expanding markets and increase 10c~<;--or'OV:Laea by the East Asian countries. It should be errlOf1a­ '-''-'V'-''.'--'I--''''''_''' programs which to promote however, that even with the right pattern of broad-based groVv-th and poverty reduction. growth, social safety nets must also be provided to assist The second trend I mentioned as having a major vulnerable groups such as the sick, the old, and chil­ '--''-''UUJ'F. on the is palrtlC]p:lti()n. dren. National leaders and governments used to have the final Second-and just as important as growth-there in some cases, the only say-in political and must be investment in people. Education, health, nutri­ economic decisions. But with democratization and family planning enable the poor to contribute 14 to and participate in growth-and have a very high pay­ needed more than ever before; the challenges are greater off in tenns of poverty reduction. Our analysis indicates, than ever before. But they must also show themselves to for example, that no country has been successful be more effective than ever before. economically with a less than 50 percent literacy rate. The universe of development institutions spans from This two-track approach to poverty reduction is a the UN family of agencies, through the Bretton Woods simple conceptual framework. Operationally, however, it institutions through bilateral aid agencies, to NGOs and is powerful. It is a strategy around which all of us can individuals working at the grassroots. All are important. organize our efforts-tailoring them to the needs of All have different comparative advantages. All share the individual countries. same objectives. But we have not done enough to strengthen relationships and synergies. Sustainability Partnership must be one of the major themes of the Let me mention three issues which are essential in '90s. No single institution has all the answers to these underpinning the sustainability of the two-track poverty­ complex development issues-nor all the necessary reduction strategy: resources. We need to work together around the same • First, environmental protection. Nearly two broad poverty-reduction strategy. billion people do not have adequate sanitation; 1.3 The Bank's role as advisor to our borrowers on billion suffer from indoor pollution. Soil erosion and economic policy and sector refonns-to promote deforestation threaten the livelihood of millions of competitiveness and sustainable growth-has become fanners and forest dwellers. We must do more to build increasingly important. At the same time, our role as upon the "win-win" links between helping these people provider of financial assistance--on the order of about and, at the same time, protecting the environment. For $25 billion last year-remains fundamental. Most of our - example: by removing price distortions-such as energy lending is for project investments in agriculture, human subsidies-that encourage overconsumption of natural resource development, and infrastructure. resources; by accelerating the provision of clean water, Environmental protection is currently the fastest­ sanitation, and health services; and by promoting growing segment of our loan portfolio (about $2 billion agricultural research which can boost productivity in last year). Our support for investments in people-basic environmentally-friendly ways. health, education, family planning-has also increased • Reducing the population growth rate is a second five-fold over the last decade (to about $4 billion last factor essential to sustainability. Global population will year). In fact, the Bank is now the largest single provider increase more during the 1990s than in any previous of external assistance to the developing countries for decade (by about 850 million people). Ninety percent of education, health, and tropical forest conservation. Like this increase will occur in the developing world. In everyone else, we have learned the importance of some of the poorest countries, particularly in Sub­ sustainability in development. Saharan Africa, the population is doubling every 20 We have also learned, from sometimes painful years. Effective programs for family planning, health, and experience, that participation by the people affected by education must be implemented to prevent population our operations is vital-and, as I said, we are working to growth from running ahead of economic growth-and improve our approach in this area. We have learned the thus increasing poverty. importance of being as open as possible-widely sharing • The third factor critical to sustainability is the infonnation on development and the lessons of experi­ role ofwomen. In many developing countries, women ence. We believe it is very important to be candid-both play the major role as producers of food and protectors about what works and does not work. We have also of the environment; in educating children and in family learned that follow-through and implementation of planning. Women are central to growth and to poverty ongoing projects matters more than rushing ahead with reduction. Yet too often, they have been treated as new lending. Results on the ground-really reaching the invisible-by governments and development institutions. poor-are what count. Again, this must be one of the This must change-and I believe it is changing. The major themes for development-and for development World Bank, for example, is now placing major empha­ institutions-in the '90s. sis on ensuring girls' access to education-which is As the Bank marks this 50th year of our establish­ probably the single best investment in the developing ment, we are naturally looking back--on our role in world today. assisting, for example, with the Green Revolution in India, with the East Asian miracle, and with the restora­ Role of Development Institutions tion of growth in Latin America. But we are also looking Let me tum briefly to the international institutions forward. The demands on the Bank have never been concerned with sustainable development and poverty greater and our capacities are stretched. We are very reduction. Clearly, they have a special responsibility in much aware that we are still learning about deVelop­ this new era of rapid change and globalization. They are ment-and that the challenge ahead is fonnidable. • 15 Career Advice for Bank Spouses A Smoother Move by Lisa Costa fir some Washington area new­ counseling, clients may avail comers, life has become a little themselves of the library and easier, thanks to the Family Career computer room (equipped with Transition Program (FCTP) recently three computers, a printer and a introduced for spouses of Bank and copier). IMF recruits who have just arrived Ellen Harvey and Associates, a in town. The Program will help private consulting firm, has been them negotiate the city's job market contracted to operate the FCTP. as they seek to put their skills to Ellen Harvey and David Reile share work. the job of career counselor, provid­ The FCTP , created in response ing personal counseling and to a growing demand for career support, while Diane Catlett is the transition assistance for the spouses FCTP 's researcher and administra­ of Bank and Fund staff wishing to tor. Brian Donnolley, Manager of continue their careers in the Program Support for the Bank's Washington area, opened its doors Personnel Services and Compensa­ in the G building at the beginning tion Department, currently oversees of December. It provides personal the program which was introduced counseling, seminars and work­ as a result of a set of recommenda:­ shops on topics such as career tions identified in the Work-Family transition, job search strategies, Agenda for the World Bank. This resume writing, interviewing skills report was issued last year by a and, most important, friendly Joint Working Group whose su pport. These services are also membership comprised representa­ available to spouses of staff who tives from the Staff Association, have just returned to the area from World Bank Volunteer services and resident mission assignments the PAAVP. The Joint Working abroad. Group also established a close The FCTP is not an employ­ relationship with the IMF as well as ment center nor will it help clients maintaining contact with the Bank's find or get particular jobs. Its role is AdviSOry Group on Higher Level simply to offer advice, facilities and Women to ensure the agenda direction . In addition to advice and addressed their needs. 16 Changing demographics, who were working on their observes. "You get the feeling that particularly the increase in dual resumes. One was in mid-career as the Bank is going to take care of career couples, had dictated the a market researcher and had to you throughout your move, but initiative. Seventy-five percent of leave her job to accompany her that's wrong." higher level Headquarters staff are husband here. The other had just Now, with the creation of the non-U.S. nationals, most of whom completed her thesis in economics. FCTP, spouses of staff recruits are have been recruited from other Both were completely unprepared made aware of the Center before countries and relocated to Washing­ for the rigors of the Washington job they arrive. They have the option ton, D.C. Two-thirds of them are market. They put the new Center to of talking to the counselors by married when they arrive, and most good use. phone or sending in their resumes of the spouses are in mid-career. "For instance," one points out, and background data so research As women's roles in the "networking is everything here. In can begin even before they arrive. workforce have increased, so has London, I never had to worry about Ms. Martin feels these efforts are the demand for spouse career that." The FCTP, they say, has given just as valuable as any of the other transition assistance. More women them interviewing and resume services available on arrival. than ever are being recruited by the writing skills. If a spouse doesn't speak Bank and Fund, but Personnel has "The resume is designed English, or lacks a work permit for noticed a growing number of differently here," the economist the United States, the FCTP cannot candidates rejecting employment notes, as she comments on the way help, nor can it aid those who only offers so their spouses don't have local job seekers are encouraged to seek full-time employment with the to interrupt their careers. flaunt their achievements. Being Bank or Fund (although temporary The Bank and Fund employ an able to talk to others in the same or consultant opportunities may be international staff of highly-skilled situation, they both agree, is the possible). The Center is open every specialists. In order to sustain best support of all. weekday from 9 a.m. to 5:30 p.m., successful recruitment, career Chris Martin, an Australian telephone: (202) 458-4760. transition to Washington must be whose husband recently joined the While the purpose of the FCTP facilitated for spouses, too, or the Bank, has used the FCTP on several is to facilitate an effective career institutions will lose their competi­ occasions. A self-employed training transition, success stories vary. tive edge as employers of choice. contractor and editorial writer, she Some people may end up with an Those who actually make the says it is difficult to find work in offer of full- or part-time employ­ move have, in the past, had to D.C., but she has obtained several ment in their chosen field; others endure obstacles characteristic to leads thanks to the Center. may become self-employed. Some this town, such as the bureaucratic "Dianne Catlett has started me applicants choose to volunteer their gantlet that must be run to obtain a on new avenues and taught me to services, or perhaps return to work permit. Moreover, the diffi­ be flexible in my thinking," she university to enhance their qualifi­ culty of comparing previous work says. Ms. Catlett and the two cations. Others decide not to seek experience and education with counselors, whose jobs include employment after all. The Center local job requirements and lack of researching career paths and provides the resources so our new knowledge about the local labor options, are very valuable to neighbors may make realistic market compound the difficulties people such as Ms. Martin who choices. When someone leaves the and hinder the chance for a smooth come to Washington with very Center feeling a little better in­ transition into new surroundings. specific needs. formed about the job market and The FCTP held an Open House "One of the worst things about their own prospects, the FCTP staff December 3. While I was im­ being the spouse of a Bank or know they have done their job. pressed with the serene atmo­ Fund recruit is that, prior to the sphere, the various facilities and the move, there is a definite lack of Editor's note: Lisa Costa is a Staff friendly staff, it was most interest­ communication between the Bank Assistant in the Information and ing to talk to two British women and the spouse," Ms. Martin Public Affairs Division, EXT 17 Who's Afraid of the Auditors? by Anwar Ravat In a large organization some­ more than that: it includes promot­ ing sound internal controls in the for the audit skills needed. For the technically minded, the mission's where, perhaps a bank in the United States, a cattle ranch in Bank; helping client departments objective was to review project Argentina, or a coal mine in improve their procedures; advising implementation capacity in Russia, Zimbabwe-a ritual "face-off' is on new controls; looking with a given the potentially large sums under way. fresh set of eyes at issues that planned to be committed there. It is Monday. It generally is on concern client departments; and Also, to deal with any immediate a Monday that a team of internal finding more efficient ways of implementation obstacle that auditors-briefcases at their feet doing business. existed, be it in the area of procure­ and notepads at the ready-is in a lAD's management and staff are ment, accounting and auditing or manager's office. The manager may drawn from a wide variety of disbursements. be head of a department or even of disciplines and include professional The mission-headed by ECA's an entire organization. He shuffles auditors, accountants, economists senior adviser, Michael Gillette­ some papers on the desk. He waits. and computer specialists. Many comprised eight members including The audit team leader, a glint have considerable experience in two from lAD-the Auditor General in his eyes, somberly intones: "We the Bank's front line (Operations) and an lAD staff member. The lAD are the internal auditors; we're here as well as in other Bank depart­ team's task: To review the newly for the audit-and to help you with ments. All have considerable emerging Russian accounting and your task." The manager rubs his business or financial experience as audit industry, and to identify sweaty palms together and re­ well as audit, systems and controls firms-if any-which might meet sponds with equal solemnity: "We skills gained within and outside the Bank requirements for (external) welcome your audit; we will share Bank. All this combines to give lAD auditors of Bank-financed projects. everything with the audit team, and a unique vantage point-in being No problem-except there were provide all the assistance you able to bring an objective and more than 2,000 such audit firms need." expert viewpoint to its work, which across Russia's nine time zones. A stereotype? Absolutely! brings real value to client depart­ Some problem indeed, especially ments, and strengthens the institu­ since internal air travel in parts of lAD at a Glance tion as a whole. Russia can be an endurance test. This isn't how it works-at The mission overcame that particu­ least not with the Bank's own A Trip to the Great North lar test by simply staying in Mos­ Internal Auditing Department When a department in the cow and deciding only Moscow­ (lAD). lAD's main function under Bank's Europe and Central Asia based audit firms would be re­ its mandate is to do internal audits (ECA) region began putting to­ viewed during that visit. (the box below explains). But it's gether a special mission to visit the Russian Federation, it turned to lAD 18 The Russian Audit Industry While the quality and capabili­ There was more. To review a ties of Russian audit firms met by What lAD Is About profession that had only been the mission varied a great deal, a around for five years (compared common theme was a determina­ The Bank's Internal Audit­ with over a century in most other tion to succeed. Firms were keen to ing Department (lAD) has about countries) posed a problem. How develop themselves, to learn about 30 staff, and is headed by the would the mission assess Russian and apply international audit and Auditor General, Allan D. Legg. auditors' and accountants' compe­ accounting practices (bearing in With Mr. Legg are two Group tence when the business environ­ mind even the term "audit firm" is a Audit Managers (div~sion ment in Russia was so different? For recent one in Russia). The IAD chiefs), Robert Saunders and instance, a common audit step team was able to complete its task; Michael Walden. elsewhere-the inspection of paid capable Russian audit firms were While for administrative bank checks-is not possible in identified. With lAD's contribution, purposes, lAD is part of Con­ Russia since checks are not yet in therefore, the Bank increased its trollers, it functionally reports to general use. Most transactions are knowledge of Russian audit and the Bank's President. This made in cash or by bank transfer. accounting issues. More impor­ reporting line ensures lAD's Indeed intra-bank transfers them­ tantly, a developmental objective independence from othe r Bank selves involve shunting cash-filled should be achieved in the future by departments where lAD con­ metal boxes around, the problems enabling Russian audit firms to ducts its audits. of which are obvious. benefit directly from doing audits of lAD's work strengthens the Furthermore, the mission had Bank-financed projects. Bank as an institution by means -heard tales of some audit firms of a regular program of internal (especially outside Moscow) being We're Here to Help audits of differe nt areas in the somewhat "multi-faceted" and Along with this example of Bank. The audits look at Bank having business interests other than lAD's work-and with many other departments' operations, auditing. On the other hand, other audits and assignments each policies and procedures. lAD Russian audit firms were quite month-IAD contributes to the sees how resources are used reputable. How was the mission to Bank's overall mission. and controlled. Where any of sift through such a diverse group of To complete, then, the scenario these could be improved, lAD's firms? Undaunted, the mission sketched earlier in this description audits point this out. worked with the Russian authorities of IAD: Some weeks have gone by; How are audits selected in to make a start. The IAD team the audit is complete. The audit the first place? By picking areas devised a method for the firms to team and the client department's with greate r risk or exposure. present key details about them­ managers have just discussed the And by listening to selves, in Russian, of course. The audit's findings. The client thanks management's concerns. Every mission's sole Russian-speaker-as the audit team for noting areas year an increasing number of well as local interpreters--came to where systems and controls have lAD's assignments are in the rescue. With their help, the improved since the last audit. "I response to departments' mission reviewed the audit firms ' agree that more needs to be done," specific requests to review a quality and capacity in some depth. he says. "Your recommendations in particular aspect of their The meetings with (and visits the audit report will certainly help. " operations. to) the firms were interesting, and The audit team leader demurs the results revealing. Some of the and remarks: "It's you whom we audit firms were crammed in small thank. As we said before, lAD not offices in drafty buildings (offices only does audits. It's also here to lining dimly-lit corridors, reminis­ work areas were strewn with help." cent of private detectives' offices in personal computers, calculators, Raymond Chandler novels). But the folios and ledger sheets filled with Editor's note: Anwar Ravat is • scene of organized chaos in each dense columns of numbers. Audit Audit Senior, lAD. was familiar. As with accountants' firms in Russia were perhaps not so and auditors' offices everywhere, different after all. 19 Working Together by Eric Swanson T wo months into my new job as The team must also be allowed standing differences with his Staff Association Chair, I find myself to do its work. The best task supervisor, and your Personnel thinking about teamwork. What managers don't do it all. If they did, Officer mentions the opening in makes one group of people into a the team would be redundant. your division. Or the wrong people team while another group remains Rather, they assemble the team and have been put together, or there just an assortment of people? What act as coaches. They make sure that are mismatches between task does the team have that the the necessary resources are in place managers and teams. assortment doesn't? What calls forth and then provide guidance or Sometimes the Bank does well the synergy that is the hallmark of assistance to the team if rough by its teams and sometimes it team effort? What do we know here spots develop. Although a good doesn't. In addition to the generic in the Bank about building teams? task manager may think she knows problems of assembling teams, Building teams starts with the solution to a problem, she doing well by them requires a having the right people together at remains open to new ideas­ delicate balancing of individual and the right time. It's more than just especially the ones she didn't think institutional incentives, goals and assembling an abstract set of of first. rewards. For example, how should technical skills. You may have Leading teams is done by we reward task managers when hired the best omelette maker in example, not by administrative fiat. their success is the result of team Lyon, but if he hates to get up As they go about their daily tasks, effort? Conversely, how do we before noon, your team will team leaders send signals to the reward team members whose probably go hungry at lunch. Or rest of us about what is valued and efforts would have availed little had you may have hired the best what is not, what will be rewarded it not been for a resourceful task economist in West Africa. But when and what will not. Ultimately, they manager? And what do we do with she comes on board, you discover are showing us, as much by their a team when the task is done? that your best technical adviser has actions as by their words, how they There are no simple, one-line difficulty accepting a woman as a value the work and how it gets answers in the back of the book for peer. You've got the right technical done. these questions. skills, but you're still some distance There are, of course, complexi­ Does the Bank's structure from having a team. ties here at the Bank. Suppose you reflect its dependence on team­ Making the best use of teams have an opening for a technical work? The organizational chart still also requires having a problem that specialist and you know just the reflects a flat, authoritarian hierar­ your team is interested in and person to fill it. Only you find out chy rather than the nested struc­ committed to solving. The problem from Personnel that the Bank needs tures of teamwork. But look at the has to be the right size for your to do some more recruiting from traditional pyramid from above team: too big and the team will not Gondwanaland, so you won't be rather than from the side: the visual coalesce; too small and the team able to fill the slot the way you difference is dramatic. What will be looking for other things to would like. Or another department appears from the side as tier upon do. needs to place a capable technical tier becomes squares within specialist who is troubled by long­ squares. Thus, the whole Bank can 20 be seen as a single, large team-the profile looks a bit different because As other articles here in Bank's largest square. Nested within this we are a democracy depending on World often show, Bank teams can largest team are the smaller teams volunteers to organize the teams make a powerful difference for our that carry out each part of the that carry out our work. Our clients. Serving our clients is the Bank's work. At the center, the Working Group members, who key to maintaining our effective­ President is dependent upon the form the technical core of the SA, ness in the future. Perceptions of work of all the teams that surround commit themselves to the goals of the Bank are changing-of neces­ him and he in turn sets the pace for their teams. Their work is carried sity, because the world itself is them. As the leader of the Bank out in the context of the larger SA. changing. For us to remain com­ team, he communicates goals, The Executive Committee and petitive in the development world, encourages participation, acknowl­ Delegate Assembly gUide SA work we must do a better job of working edges success, and corrects mis­ to meet the broader needs of Bank together. And, as always, the Staff takes. staff and the Bank. All of this is far Association remains committed to The Staff Association is also a easier to say than to do; but it helping foster teamwork and a team-based organization. Our works. sense of common purpose among all staff. Around the Bank New Travel Policy? In September last year, a six-woman team went to Tunisia to negotiate a $120 million loan for lines of credit to 10 borrowers (the Government and nine financial institutions). The loan was successfully negotiated, presented to the Board in December, and signed February 14. The camel ride was just for fun when their work was over-it wasn't their regular means of transpor­ tation. The man standing at left is the Tunisian camel guide. The mission members, from left to right: Claudia Pardinas, a lawyer from LEGMN; Joetle Le Vourc'h, former division chief, ACTCA, and now in the Paris office; Dung Kim Pham, operations assistant, MNlIE; Laurie Effron, mission leader, MNlIE; Morag van Praag, disbursement specialist, LOAEL; and, standing , Laura Burakreis, financial specialist, MNlIE. • 21 Camera Club's Annual Exhibit Smithsonian Institution, area universities and the Washington School of Photography; experts from local processing labs; and free lance and commercial photographers. These two pictures are just a sample from this year's collection. Staff are invited to bring their fami~ies and guests to the exhibit. Bank and IMF staff will once again have the pleasure of attend­ ing the International Camera Club's (ICC) Annual Exhibit, scheduled to start Monday, March 7, and run through April 8 in the Fund's Atrium. This year, you can feast your eyes on 190 photographs-both color and black and white. The photographs, which reflect various themes including architectural, studio, still-life, nature, fine art, and more, were carefully judged and selected by a panel of distinguished photographers. Traditionally, judges for the ICC Annual and Semi-annual exhibits (displayed in the Bank's DI E walkway) have included profes­ sionals such as photojournalists from National Geographic, the Washington Post, the New York Times, Newsweek, and National Wildlife; photographers from the Face of India : Photo by Mal Dick 22 Thanks a Million New Editor With this issue of Bank's World, Thierry Sagnier, the magazine's editor since November 1987, moves on. Effective March 1, Mr. Sagnier will be researching how the Bank's External Relations Department can best make use of the "electronic highway." Jill Roessner, the Bank's World associate editor during the same period becomes its acting editor. • Resting on their laurels after a busy day of packing. Standing, left to right: Anna Dahlborg, lneke de Haan and Liz FennelJ. Seated, Nadia Attinost and Jack Wilkerson . Photo by Michael Spilotro. World Bank Volunteer Services an hour at lunchtime. Help is also Book Project volunteers recently needed at the Laurel warehouse shipped their millionth books. It (they can arrange transportation). was among a shipment of 20,000 In the December 1993 WBVS books, destined for Romania, to be Newsletter, Book Project President distributed by the U.S. Peace Corps. Liz Fennell wrote: "Our volunteers And although it would be range from teenagers during impossible to pick out one single vacations, to members of WBVS' book as the millionth, it was one of Husbands' Group, to Clara Gordon 50 in a box containing dictionaries [wife of retiree David Gordon] who and encyclopedias. is 79 years old and who has come The Book Project people to the warehouse every week for always need volunteers to help out the last 10 years." • in their N building office, even for (0[5®OCC?BGDB ® , ~Fl NITIC1-JS I , I "l)ES1::ID? "?O'&JSI-\/N6: WI-\AT 'BW'E. UNE. "R2O::>F: ~AFl FINAL't)EJ\DUNE: \2 ...9 . Etl\TmIAL ~~ 1:1X:JlE.: LI Si 01= n\E l)E5K;N~ 1J~E!:llL:> 1:0 ~~ ?\JLUt-JG .b.nlCLES \..Asr "TUES"Dfoo.'I. A~CLE.S 'iOLJJUSTSENi ~ A "BII< >I< >I< receiving from the contractor adequate compensation to employ Question: The June issue of who lost the bid. Some of these the factors of production needed, Bank's World carried Mr. workers have been at the Bank including, of course, employment Preston's opening remarks from 10 years and more. benefits. This, the Bank feels, is a recent conference on poverty How can the Bank, as a sufficient when firms are operating reduction. He stated that: "My matter of policy, perpetuate a in countries that have, traditionally, goal since coming to the Bank, systematic denial of health care been adequately concerned with has been to try and strengthen coverage to contract and tempo­ their citizens' welfare. The govern­ that focus, improve implementa­ rary personnel? They wouldn't ments have put these concerns into tion, and to better measure the consider asking a senior econo­ regulations and laws which protect Bank's impact in improving mist, a project manager, an the employment practices under people's lives." Further, he engineer, a staff assistant (or which their citizens work. stated that, changes in the even the editor and publisher of If the Bank were to start Bank's internal structure, this magazine) to accept the routinely stipulating what employ­ policies and operations were same conditions. ment benefits would be utilized by aimed at more effective imple­ While the Clinton adminis­ its contractors, a number of issues mentation of poverty reduction tration struggles with the health could arise, some of which may be efforts. care problem, shouldn't the unmanageable. There are all kinds How then can the Bank, in Bank be a leader in this crucial and levels of employment ben­ good conscience, employ hiring area? Doesn't it seem out of efits-where would the Bank stop? practices for contract staff at the keeping with the overall institu­ Ultimately, the Bank could effec­ Bank that don't measure up to tional goals of the Bank to tively eliminate competition. For those goals? Although the discriminate against the very example, if all its contractors were Bank's prime directive is better­ group of workers whose prime to have the same employment ment of the Third World, should directive is the betterment of packages and therefore, quite its employees in the First World our work environment through likely, the same costs, the only be excluded? Bank staff have their service? thing left open for competition become accustomed to--and in Answer: The principle common would be their profit margins. And fact demand--f"trSt class and to all types of purchasing depart­ how could they be monitored? The immediate service from their ments-and the Bank's is no exception-is to obtain the greatest Continued on inside cover 28