56978 Vol. I, No.8 June 3, 1997 1,200 Non-Regular staff sign protest letter to president By BW Reporter ALMOST 1,200 Non-Regular staff have signed a letter of protest to president James Wolfensohn demanding that the Bank take urgent action to ensure that they are no longer "second class citi­ zens". The letter calls for measures to redress inequalities and ensure that there is a single staff. The widespread support for the letter indicates growing discontent among the consultants and tempo­ rary staff who form 25 percent of total employees of the Bank. "I am leaving," declared one consul­ tant recently given a junior man­ agerial post. "I am paid 30 percent of what so-called Regular col­ Sirens screamed along Pennsylvania Avenue on May 30 as a fleet of ambulances, fire trucks and police rushed to the Bank to ferry food-poisoned staff members to hospital. About 35 staff fell sick leagues are paid, yet I am just as after eating blue marlin in the MC cafeteria.A Bankwide alert went out to warn other MC diners of symptoms to watch out for. dedicated and hardworking. As a US citizen, I cannot get pension Bank wrestles with major managerial reorganization benefits or maternity provisions. I am fed up with a Bank that per­ petuates two classes of worker and is not honest enough to admit that this is driven by dollar budgeting." As reported in Bank s World in April, human resources VP By Kevin Rafferty where we try to bring in as many ECA and MNA was being pre­ sent a letter to all staff. "Let me perspectives as possible, so that we pared as Bank's World went to start by saying that there are many TOPEXECUTfVESofilieB~ get decisions based on as much press. EAP has only just started stars in our organization, who may are working hard to calm a wide­ information as we can obtain, in shortlisting. About 700 individuals not be shortlisted for available spread and deep sense of uncer­ contrast to the way it was done ear­ have applied, but this means 2,000 management positions," he wrote. tainty and worry over ilie ongoing lier where decisions were seen to total applications (See p. 6-7). "They may well be, however, managerial reorganization, "the be taken without a clear explana­ There is much sweat and burn­ future leaders of our institution. great unknown reorg" as one tion or rationale. ing of hundreds of hours of mid­ There are many paths to ilie top at Asian technical specialist calls it. 'We have opened things up, job night oil as the shortlisting teams, the Bank and the old perception On;of the I,200 protesters signs Senior managers point out that descriptions and vacancies are broadly chosen from across the that line management is the only Dorothy Berry is working on a the objects of the reorganization advertised, staff are encouraged to Bank, strive to keep the promises of route is outdated and incorrect." wide-ranging review of employ­ are to make the B~ more effec­ apply, we do external searches and fairness and transparency to select Not everyone is reassured that ment policies, which will address tive as the world's leading devel­ try to get the best and strongest the best people for a rejuvenated the upheaval is worth it. A task the questions of Non-Regular staff. opment institution and also to seek groups of appli­ Bank. The selec­ manager in Asia complains: "Work In their letter, the Non-Regular and nurture managers who will cants we can." tion is also pro­ has noticeably slowed because we staff pledge their commitment to bring out the best in their staff. Under the ducing strong don't know who will be in the man­ Wolfensohn's renewal policies, Managing director Sven Sand­ reorganization, complaints from agerial seat in a few weeks. ECA is but point to the "gross inconsisten­ strom said: "You should see the all director and experienced full of rumors of who is getting cies between the conditions of reorganization in the context of the division chief managers who what, but in South Asia we are wor­ employment for NRS and the broader objectives we are trying to jobs in the have not made ried that there are no rumors." long-term stated goals and obliga­ achieve, to streamline the B~, regions (exc­ shortlists, and ECA vice president Johannes tions of the Bank." They demand make it more effective, more effi­ ept for Africa, concern and Linn conceded that the selection the immediate lifting of limits on cient, more decentralized, delayer­ which complet­ anger from oth- has been "more painful than we NRS employment, provisions for ing, changing the structure in the ed its reorgani­ ~ ers who question realized." But he justifies the deci­ Non-Regulars to get maternity regions, creating the networks. zation some o whether the tur­ sion to fill all the jobs together: leave and a contribution retirement Selection of new managers is dri­ time ago,) are Sandstrom: more open moil is worth it. "Having this continued sequential plan. Longer-term they want ven by the Strategic Compact and being contested, about 170 posts in One experienced manager commotion cascading through the "equal compensation for equal the business rationale ... all. Jobs are different from previ­ claims that "there's already blood Bank would have prolonged the work" and a proper pension plan. "We need managers who are ously because of the move to a on the carpet" and another asserts, agony, and all agony is bad." He The letter notes the president's strong on technical skills, on deliv­ more field-based Bank, delayer­ "I have had three grown men crying praised ilie new emphasis on peo­ promises to be personally ery and on people management. ing, the creation of the networks on my shoulder, literally, because ple management as essential to involved and recalls that in 1988 The process is new, but it was used and simplified business proce­ they have not made the shortlist and remove "the cynicism and the gap Ian Hume, then director of per­ earlier in IFC and is practiced in dures. The new managers will take feel their lives have been wrecked." between management and staff sonnel, promised to correct the other outside organizations. It is a up their jobs by July 1. The first To calm these worries, presi­ and strengthen the partnership and anomalies of the ambiguous sta­ very open, very transparent process batch of announcements from dent James Wolfensohn last month vision of the Bank." tus of NRS staff. INSIDE •.. INSIDE .. . AnswerLine, News ..............................2 Banker to biker in 10 minutes •.•......••2 Lotus Notes takes off...•••••••••••••••••......3 Win Bloomberg's bio ...................7&9 Staff Association Forum•.•••.•.•....•.••••••8 Classitieds•••••••••••••••••••••••••••••••••.••••..••••8 Letters ................................................10 Community Connection ...••••••••••••••.•10 Keynes on debt forgiveness ..............ll Staff Week diary ............................... 12 2 June 3, 1997 ... NEWS ..• NEWS •.. NEWS .•• NEWS ... NEWS .•. NEWS ... NEWS ... NEWS •.. NEWS Publisher goes to market to get Banks message across DIRK KOEHLER, the Bank's had run out of stock of the atlas publisher, is invoking market early this year. When resident mis­ principles to tum his division into sions were asked this year how a modem, streamlined and cost­ many copies of the 1997 atlas they effective operation. Key elements wanted, Russia asked for 50 free include a charge-back system for copies, but Madagascar wanted publications within the Bank and 300 for its tiny country. efforts to make the information "[ so often go into offices that more readily available in both which are converted into mail printed and electronic formats. rooms and book warehouses," He says the object is "to facil­ Koehler grumbles. "People just itate the dissemination of the hoard these things and send them Bank's messages. But we are in a costly and amateurish way. convinced that this should be "Our experience is that people done in a cost-effective and tar­ write something, then arrange for geted way, and the best way to typesetting and printing, then the BANKER TO BIKER IN 10 MINUTES achieve this is by using market forces. This means that within the Bank the decision to give away a boxes wait in front of the office until they find the telephone and give us a call and tell us, 'Now I Whenever Tom Hoopengardner goes on mis­ bicycles to be carried, folded or not, either as book should be made in the front­ have here 10,000 copies and I sion to places like the Ukraine, Moldova or Ger­ checked or hand-carried baggage. line, and the person who makes don't have the space for them; many he takes his trusty bike with him. How does There is no better way to get to know a place that decision should have a can't you market them?' That's he do it? - neatly folded and packed in a stan­ and no better way to start a day," says Hoopen­ chance to value that book accord­ impossible: we don't have funds dard suitcase in his check-in baggage. It weighs gardner, who regularly goes for an hour spin ing to his or her budget. By doing then to market something like about 22 Ibs, induding the toolkit with puncture before breakfast and work. Even the this we allow the originating that. It probably is a product outfit. Assembling it is a matter of a nifty seven to "humungously steep hills" of the Ukraine pose no department to recover part of the which is not targeted. This is the 10 minutes, depending on how nimbly he handles problem for his 24-gear machine, which cost a production cost. kind of dis­ the assembly. (He did it just inside 10 minutes, cool $1,000. If he gets lost, local people are quite ''The new poli­ semination ­ including tightening all the nuts, in the demon­ happy to chat and thus teach him new aspects of cy says that to print a huge stration, pictured above, in the N building.) Being the country. "I have learned more about places by the originating number, to able to tuck the bicycle neatly into the suitcase riding my bicycle than ever I would without," he department has to order a huge solves the problem of airlines which will not allow says. ~ Story + pictures by Rafoto pay all the pro­ number with­ duction cost, and out thinking ... ANSWERllNE ... ANSWERLINE ... ANSWERllNE ... the office of the - we want to publisher works avoid since Q .I consider myself modem address validation. Under the • in most ways, but I find it newer release of Notes version text, graphics and bitmaps, col­ lapsible sections, links to other as a clearing house only." it is uneco­ nomical." hard to adapt to these new Lotus 4.5, ITS has made some local messages and documents, etc.). Notes. In sending e-ms, the per­ modifications so that the !Per­ You can set up your mail files to Koehler adds that A new son receiving the message is sonIWorld Bank does not appear support a multi-level folder the policy applies product devel­ addressed as James Wolfen­ when reading or printing mail structure allowing you to orga­ only to priced @ opment and sohnlPersonIWorld Bank. I know you receive, but still maintains nize your mail with much more publications. ~ planning unit he is a person. Why is it neces­ this information for system and flexibility. Notes will also allow The internal o will guide sary? To distinguish him or her administration purposes. you the option to receive your price will be set Koehler: horror stories about waste authors on from dogs, cats, creatures from With regard to your second faxes directly in your electronic close to the unit cost, so that the how to publish effectively, includ­ outer space or UFOs which point on received messages, mail mail, and to send faxes complete originating department should ing editing, design, marketing, dis­ Lotus Notes aspires to communi­ which goes from All-in-One to with Word, Excel or PowerPoint neither make a profit nor have to tribution and even translation. The cate with? Notes must be converted by a set attachments at the same time you shell out large sums for copies publisher's office offers to handle When I receive e-ms, they of mail gateways. Since the send them to your colleagues on given away by others. As an all aspects of publication from simply come from jwolfen­ majority of dissimilar mail sys­ e-mail, and you can do all this example, the World Bank: Atlas manuscript to printed and electron­ sohn@worldbank, without indi­ tems use the Internet protocol to using a graphical Windows inter­ sells at $15 for the outside world, ic products, "leaving the author to cating that the sender is male or communicate we opted to do the face. That is just for starters. The but the internal price is $3, or 20 concentrate on the research." At female, what herlhis job is and same. It is necessary to convert benefits of Notes and the things percent of the list price in industri­ the moment, the publisher is without the telephone extension the e-mail addresses as well to you can do with it are too numer­ alized countries (it is cheaper in responsible for 500 works a year like on the All-in-One system, this protocol. The address ous to describe here. We invite developing countries in their local out of about J ,500 Bankwide ­ which means that I have to find a jwolfensohn@worldbank.org is you to visit our Web site at: currencies). World Development "nobody knows exactly how many telephone directory if I wish to such an example. The basic http://wblnOOll/Informa­ Indicators has an internal price of because the records are fragment­ speak to the person (and as you Notes product does not by tion+TechnoiogylNotes/Notes­ $15 and list price of $60 in indus­ ed," Koehler says. He predicts that know these are in short supply). default provide phone numbers Lib.nsf and the Lotus Web page trialized countries. For the World the campaign may lead to fewer If we are going to go modem, or unit information in the elec­ at www.lotus.com. Development Report this year, the but better publications. why can't we adopt a sophisticat­ tronic mail headers. However, As to Notes allowing commu­ originating department has set the - BW Reporter ed system which is an improve­ ITS has already made a local nication with creatures from internal price at zero. A small number of "institu­ BANK'S W~RLD A• ment on the old? modification which is currently outer space and UFOs, we Unlike All-in-One, Lotus being tested to provide this func­ checked with Lotus but alas that tional" copies will continue to be World Bank Groop .Notes allows mail messages tionality for all mail sent from feature is not available, but it is given free, for example, to the 1818 H Street. NW president, executive directors, Washington, DC 20433 to be sent to other types of one Notes user to another. These promised in a future release. Phone: 473-2211 Fax: 522-2477 accounts besides individuals. In enhancements, including the Marc Nodell some senior managers and for Notes you can send messages to ability to suppress the display of Manager; Messaging and media and 240 depository Editor Kevin Rafferty Assistant Editor Lauren Ptito applications, to mail-in databases distribution lists, will match what Collaborative Tools (ITSMC) libraries round the world. The Contributing Editors Brigitte Aflalo that can be shared by groups and you have in All-in-One. Editor's note: The person who minimum free distribution of any AI DratteIl book is 800 copies. 1be Annual Production ControUer Kuniko Kurimura to service accounts. Notes pro­ While we are providing many posed the question obviously has Dt!sign Adviser Daniel Hood vides organizations with the abil­ of the All-in-One features, Notes name-dropping pretensions above Report, the Bank's "best-seller", ity to segregate these accounts offers much more than All-in­ bislher station since he/she should will continue to be free inside and Contributors Jerry Floyd. MoraI1ina George, through a naming hierarchy. With One. In Notes you can easily have known that jwolfensobn can­ outside the Bank, but Koehler has Yosef Hadar, Y.RRadhika, this technique an organization attach and send workstation files, not be found on Bank e-mail lists. set a 40,000 limit for free copies ZenaSoudah can easily specify the types of directly view documents, spread­ inside the Bank. He hopes this BanIc's Mbrld is a publiatlion for the staff of the way to cut the print run from World Bank Group and is pub1isbcd by the vicc-pres. privileges and accesses these dif­ sheets or graphics sent to you, Send questions to Morallina F. idcIK:y for Extcmal A1&irs. The views e~ in ferent service accounts can have. simply cut and paste from other George, AnswerLine, Rm. U-H- 80,000 to 70,000. BanIc 's Mbrld an: Ihoee of its writers and do net nec· He is appalled by wastage, and essarily reflect the position of the World Bank It was necessary to pick a con­ Windows applications directly 028, using an envelope sealed with Group. the membersof ita Bmrd olExc:cuavc Dircc­ vention to distinguish staff mem­ into your mail messages, and cre­ a "CONFIDENTIAL" sticker. cites discovery of 800 copies of ton. or the CWIIIriea they repn:senl the 1996 atlas last month. The Bank:SO Mbrld reserves the right to edit all articles bers from these other types of ser­ atemail messages that have rich Non-confidential questions may be befllRl publicatioD. Articles and photos DOl roveml vice accounts. The display of the text features (such as bold, italic, sent as an e-mail to BanksWorld, department where they were by copyright may be reprinted without prior per. stored didn't even know what was mission. Please send suggestions to BtuWWorld. fully qualified name only occurs different fonts, colors, bulleted using "AnswerLine" as the subject Srory ideas 8Dd submiaions an: we\c:ome, but are when you type in the name for and numeric lists, indented block line. in the unopened boxes; the Bank subject to selection and editing. June 3, 1997 3 ... NEWS ... NEWS .•. NEWS ... NEWS ..• NEWS ... NEWS ... NEWS ... NEWS ... NEWS .• Jet engine of Lotus Notes ready for Bank take-off By Lauren Ptito can," said Gary Stuggins, a task sages, and I can't afford to have them from happening." manager for energy efficiency and that happen." This attitude may He says ITS has recently ALL-IN-ONE may still be king, power projects in Russia. "We've account for the fact that while upgraded both hardware but Lotus Notes is set to dethrone established discussion databases 2,785 headquarters e-mail users and software and has it. With 1,700 Bank staff using that bring the whole project team have Notes installed on their PCs, been working with Lotus Notes exclusively and another - staff in DC and in the resident 39 percent of them are still hang­ and with Innosoft, the 1,200 using it in addition to A1l-in­ missions, as well as clients - clos­ ing on to All-in-One. makers of the All-in-One One, the coup seems imminent. er together and move the center of ITS statistics indicate that there gateway, to solve mail "Once we hit a critical mass of gravity away from Washington." have indeed been some serious transfer problems. "Of 2,000 Notes-only users, we expect problems, such as the scary­ course, as soon as every­ the momentum to pick up," said sounding "network degradation", one is using Notes, this Marc Nodell, head of information "server hang", and "memory leak­ gateway issue will be technology's messaging and col­ age". April saw at least four ser­ moot," he points out. ITS laborative tools division. Current vice disruptions, one of which is also installing extra Notes tal [the developer]. To IBM, we plans call for the All-in-One affected the mail transmission servers in the Bank's computer are relatively small compared to phaseout to be completed in about ability of All-in-One users and facilities, which will constantly the firms that have 60,000 or a year, with both headquarters and caused much frustration among back each other up. In the future, more users." resident missions using nothing staff. On May 15 a hardware fail­ if one server goes down, the staff Some staff are concerned that but Notes by summer next year. ure knocked out the Notes 002 member will be able to log in on the Bank's technology infrastruc­ Notes incorporates a host of server and some development the other for full access. ture will not be able to support the new features never dreamed of in applications for several hours. The "We have also formed a crisis network traffic generated by the All-in-One: document sharing, 8 next day, Notes 00 I went down. management team to deal with more powerful software. Not so, discussion databases, Web pub- ~ And the following week there incidents swiftly and effectively says Le Vu, who heads the net­ lishing advanced text searching @ • •• • . were serious mail delivery delays. with a minimum of disruption to work and communications infra­ , , Nodell: In pre-let engine commUnicating mode group and personal calendaring "This type of failure should not our users," adds Nodell. He has a structure division: "In anticipation and scheduling, and a simple and Yet some staff are reluctant to occur, and if it does, the backup message for the All-in-One loyal­ of Lotus Notes, we upgraded the practical filing system that allows make the switch, preferring the system should kick in within, lit­ ists: "Don't romanticize All-in­ entire network infrastructure." folders and subfolders to simply reliable workhorse over the much­ erally, 30 seconds," said one One. For most staff, it is the only At the user level, however, be dragged and dropped. ITS is touted - but delicate - thor­ scornful IT expert. "There's really system they know and they forget some upgrading needs to be done: working on adding inbound and oughbred. "It looks great, but I no excuse for this kind of thing." that when we first rolled it out, it until the planned desktop reform outbound fax capability. don't trust it," said one staff mem­ Nodell admits that there have was slow and laborious process. project is implemented, there is a "Our team opted for Notes ber. "I'm hanging on to All-in­ been glitches, but adds that with Over the years, it has been ultra­ significant number of staff still because of the tight integration of a One until I can be a hundred per­ any rollout of this magnitude, they customized, which was easy to using 466 computers, which are number of features. Other pack­ cent sure that my messages are are to be expected. "We've had do because the Bank was one of not up to the task of running ages could do part of what Notes being delivered, and delivered in a some problems, but we are the largest single sites using All­ Notes. According to one techie, could do, but none could do the timely manner. I've heard horror addressing them as soon as they in-One; we were the big fish. We "it's like strapping a jet engine to whole enchilada the way Notes stories about lost or delayed mes­ occur and taking steps to prevent got special treatment from Digi­ the Wright Brothers' plane." MIGA TO BOOST Managers find their roots in poor villages AFRICA MINING By Ai Drattell World, February 28) and was fol­ executive development program. the availability of a clean hut for MINING IN AFRICA presents lowed by others early this year in Others in the Bank are looking you alone, the availability of a rel­ rich opportunities, and MIGA is MANY YEARS AGO on my first villages in Sri Lanka, Bangladesh at VIP too. Nicholas Bennett in atively clean pit latrine, and the this month sponsoring a sympo­ mission to a developing country, I and India. the Resident Mission in overall cleanliness of the com­ sium in Denver, Colorado visited Bank projects on site and '''The focus of the program is Cameroon arranged for some staff pound. designed to spur flows of foreign learned, surprisingly, that I was about taking yourself out of the in Washington to spend nearly two "Three families have been direct investment in this sector. the first Bank staff member the Bank context, to listen to people weeks late last month in a village. selected with between 12 and 16 "We're not just about guaran­ villagers had ever met. The pro­ and to observe," Hirshberg said. In an e-m to those in the program, members in each compound ... The tees," said Karin Millett of MIGA. ject work had been done with the For some staff members, this loss he stated: compounds are relatively far apart. "We're also into technical assis­ government people in the capital, of control as managers may pose a "The village is a hill village There is no electricity or tele­ tance." The conference is bringing and little thought was given to problem, Hirshberg observed, but about 75 km from Maroua, and phone, but a relatively clean water together ministers and decision­ seeing what was happening on the in the end the rewards for the about 6 km walk from Mokollo. supply which can be made perfect makers from many African coun­ ground and how the people were Bank and the program recipients Each large family lives in a com­ with a couple of iodine tablets. tries with key representatives of being affected. '''The rains have started but are international mining companies Fast forward to more recent not too heavy. Daytime tempera­ from around the world. times. When Mieko Nishimizu tures are around 30 degrees centi­ To date, Africa has been a small was a country director in South grade, the hut being about 5 part of MIGA's portfolio; as of last Asia, she decided to see for her­ degrees centigrade lower. Night­ fiscal year, it was only about 8 per­ self what was happening in the time temperatures are a bit lower cent. "But we expect to see an villages. She spent several weeks still. The hut has a small door and upswing in that percentage" when in Pakistan, seeing the face of a very small window. There are all the figures are in for FY98, Mil­ poverty at the grass roots. Her plenty of mosquitoes in this sea­ lett said, adding, "Africa is very exposure to the realities of the son. Plowing is under way, and the high on our agenda." Bank's work became a pilot for an construction of small dams to hold Mining Journal said that Africa intensive village immersion pro­ the rainwater. It is a site of "witnessed a major resurgence in gram (VIP) that today as South extreme beauty. So bring a camera mineral exploration and mineral Asia's vice president she wants and film. project planning in 1996. This the region's staff to participate in "We are renting a bed and mat­ increased attention by the world's fully. ~ tress for each of you (to save you minerals industry ... can be attrib­ o As planned, "this [immersion] ~ from ground bugs) and buying uted to several factors, [including] will not be a once-off training," @ you insecticide impregnated mos­ the successful effort of MIGA ... said Susan Hirshberg, an educa­ Indian village: humbling experiences for Bank staff quito nets. Also we are buying in working with many African tion specialist in the region whom will be greater. "Staff have got to pound composed of a number of plates, etc., a hurricane lamp and countries to put in place the more Nishimizu has just named head­ remember when they participate round huts, one for the father, one petrol, and a few other things for progressive mining and foreign quarters coordinator for South in a VIP, they are not appraising or for each of the wives, one for some your host. investment laws that will attract Asia's VIP. "We will want staff to supervising," she added. "They of the animals, etc. The huts are "The normal diet is a millet foreign capital and technology." incorporate spending time in the have to know how to ask ques­ made entirely of mud with no dough and a vegetable sauce. In Speakers are from internation­ villages as part of regular project tions and observe the lives of the wood, including the sloping roof, the morning there is a kind of por­ al agencies, investment banks and preparation and supervision." villagers." which in tum is covered with grass. ridge drink made of millet, sugar, industry, and include Price Water­ Five countries have been tar­ Hirshberg equates VIP with the "There was a great deal of maize and milk. .." house, Dresdner Kleinwort Ben­ geted: Pakistan, Sri Lanka, Bank having a vision. Recently, competition to host you, and we Staff who are involved in VIP, son, Caterpillar, African Selection Bangladesh, India and Nepal. The the program was extended to selected three families on the basis added Hirshberg, have found it a Mining, Randgold Resources and fIrst VIP was in Pakistan (Bank's include graduates of the Bank's of their abmty to speak French, humbling experience. Etruscan Enterprises. - AD 4 June 3, 1997 '" THE BANI{ AND THE WORLD ... THE BANK AND THE WORLD , .. THE BANI{ AND THE WORLD Good citizenship Global knowledge Fast flows challenge third world helps bottom line IN THE 21ST century successful companies will be flatter, faster, By BW Reporter _ - .. ­ Their share of global for­ in the spotlight MORE THAN 1,200 people will eign direct investment converge in Toronto, Canada on more agile - and also better cor­ IF YOU ARE an institutional (FDI) flows is almost 40 June 22 through 25 to explore the porate citizens, asserted the partic­ investor today, the globe is your percent, (15 percent in role of knowledge and informa­ ipants in a two-day conference at marketplace. 1990), and their share of tion in sustainable development the World Bank last month. Financial markets around the global portfolio equity and the ways in which the infor­ The session was part of the world are rapidly integrating into flows is almost 30 per­ mation revolution transforms Bank's efforts to mobilize busi­ a single emporium, and, al, t hough cent (about 2 percent development. The Global Knowl­ ness as a partner with government the report card is mixed, develop­ before 1990). edge 97 conference is being host­ and civil society. It sees this both ing countries are increasingly part • The importance of ed by the Bank and the Canadian as a challenge and an opportunity of this process, which is being dri­ private flows has also increased cial integration, says the report. government. James Wolfensohn to enhance development effec­ ven by advances in communica­ markedly in the economies of Management of these rapid and UN secretary general Kofi tiveness. Participants, including tions and information technology, developing countries - from 4.1 flows has not proved easy, and Annan will speak at the opening. civic and corporate leaders, pre­ deregulation of financial markets, percent of domestic investment in governments must build better "Knowledge is as important sented their case to the executive and the rising importance of insti­ 1990 to almost 20 percent last year. macroeconomic, regulatory, and for development as foreign direct board and president James tutional investors able and willing In addition, the composition of institutional environments to chan­ investment is, and we are helping Wolfensohn. All asserted that to invest internationally. private capital flows has changed nel this private capital into broad­ to do for knowledge what we good corporate citizenship is less This conclusion is at the heart dramatically as FDI and portfolio based and sustainable growth. have done for FDI: creating a about philanthropy and more of Private Capital Flows to flows have grown and bank and The report concludes that conducive environment and about the bottom line. Developing Countries (The Road trade-related lending declined in countries receiving large capital bringing together the various Rodney Chase, CEO of BP to Financial Integration), which relative importance. The flow of inflows should avoid using them stakeholders," said one of the Exploration, stated that in this age the Bank published last month. private capital has shifted on the to finance large fiscal deficits or conference's organizers. of instant communication, cus­ Their main findings are: recipient side, away from govern­ consumption booms. An eclectic array of experts tomers and employees demanded • Net private capital flows to ments to the private sector. Private Countries that are not attracting will participate in more than 80 a higher level of responsibility. developing countries exceeded capital flows to developing coun­ pri vate capital flows should strive working sessions on seven themes: David Logan, president of Corpo­ $240 billion in 1996 - $265 bil­ tries have also proved to be to eliminate constraints impeding empowering the poor with infor­ rate Citizenship International, lion if the Republic of Korea is resilient, almost impervious to the them. Stable macroeconomic con­ mation and knowledge; policy and stressed the importance of corpo­ included - nearly six times rise in US interest rates in 1994 ditions, outward-oriented policies, regulatory frameworks for the rate social investments, noting greater than in 1990. and the 1995 Mexican peso crisis. and addressing other constraints to information economy; harnessing that businesses need physical • Private capital flows dwarf A dozen countries accounted private investment all help, information and knowledge; fos­ infrastructure, political and social official flows and are five times for about 80 percent of net interna­ according to the report. tering science and technology in stability and a healthy educated the size of official flows, a rever­ tional private capital flows in The report predicts increasing developing countries; public infor­ workforce, all providing incen­ sal of the situation five years ago. 1996, but most developing coun­ financial integration of develop­ mation, civic dialogue and effec­ tives to invest in education, health • Developing countries are tries remain a long way from ing countries and bigger flows tive governance; life-long learning care, civic amenities and the envi­ now a much more important desti­ establishing the rigorous precondi­ between them as well as from and distance education; and part­ ronment. - Catherine WooUey nation for global private capital. tions needed for successful finan­ industrial countries. nerships. - BW Reporter r------------------------I c .,. N ... ~ .. = .-C • .­m, ::2i c i S .E a. =­ g j ~ I 2 = - Z ~ C 'w i " = .. u ~__ ____ SD "!:g _ -= 0 ....c ." ~. Co I L ___ ______________ ~ ~ June 3, 1997 5 ... PROFilE ... PROFilE ... PROFILE ... PROFILE ... PROFILE ... PROFILE ... PROFILE ... W atch out: Gus O'Donnell is so excited by his recent return to Washington that he is threatening to start playing soc­ we need to concentrate on a catalyst role, and I very much agree with the kinds of ideas which Joe Stiglitz is pushing." cer again, having "hung up his Disappointingly, O'Donnell's boots", as old pros of the game say, bureaucratic caution takes over some while ago. O'Donnell's when he is asked whether diminish­ favorite position was left half back, ing aid may become a stumbling that of the classic hard defender. It block to the Bank's efforts: "I won't was the position of the famous - or comment on the current levels of infamous, if you had to play against aid. As I see it, the political process him - Nobby Stiles of Manchester will produce some numbers domes­ United and England whose name tically. Where I have come from in often appeared with the epithet "bite Europe, especially given the back­ yer legs" . In soccer legend it is also ground in EMU [forcing govern­ the position for many famous (infa­ ments to trim their budgets to meet mous) crunching tacklers given the criteria for membership]l, the nicknames like "Clogger" and fiscal position is very tight in all of "Skinner" and even "Killer". these countries, so I don't think But if the IFC soccer team is things are going to get much better hoping to sign up O ' Donnell, it had very quickly in terms of producing better hurry since his term as the lots more money for aid. The name new British executive director to of the game now must be improving the World Bank may prove one of the effectiveness. That's why I think the shortest on record. This is not because he is suffering from a ter­ minal illness - unless you count a UK'S MAN AIMS POLITELY that the word 'catalyst' is a good one. We must make sure that what money we have works harder, that Labour government in Britain as one. It's just that the Labour Party said that it would prefer to have TO GINGER UP THE BANK we generate joint ventures with the private sector, that we do things, particularly in the area of fmancial separate EDs for the World Bank and made, that's it. As press secretary, you are very important role in monitoring (the com­ institutions, which may not themselves cost International Monetary Fund instead of very fmnly presenting the government's pact], and I hope to play an active role as a a lot but which then facilitate very large pri­ combining the two jobs as O'Donnell does. policies. The one thing you should never do member of both the budget and the person­ vate flows . This is why I feel passionately In the flesh, if not on the football field, is rubbish the opposition's policies." nel committees." He later adds the aim of about HIPC. It gives countries a chance to O'Donnell is pleasant and mild-mannered Unlike Ingham, a personality in his own playing "a constructive ginger-group role to get themselves back into sustainable posi­ (as indeed was Nobby Stiles). He has come right who left Downing Street with Thatcher, make sure that it all happens." tions and provides a marker that a country to Washington from a UK treasury post. But O'Donnell returned to the treasury after three O'Donnell emphasizes that the Bank has has pursued a long track record of keeping before that he was famous in Britain as the years with PM Major to be a key figure in to change to meet a changing world and has to the right policies to encourage the private shadow of prime minister John Major, seen negotiations towards European monetary to lead its clients: "One of the key things sector to join in in the success story." darting to the side as Major emerged from union. Insiders claim that in spite of the will be that the World Bank should be seen He admits that there may be a lag Downing Street to talk to the television; the antipathy of their politicians, British officials by its clients as being more effective and before the results of policy changes are press referred to him in expressions like have demonstrated with their commitment providing a better service. There is a lot of perceived, let alone realized: "We need to "Downing Street sources". He was the and grasp of the nitty-gritty of details that scope for tailoring products to meet the find ways to fill that gap and to build up PM's press secretary. being British is not synonymous with igno­ needs of recipient countries. Also, it is democratic support for those good poli­ Margaret Thatcher's press secretary rance of Europe. O'Donnell sways away important for the Bank to focus its agenda cies. That is likely to be the case in Russia Bernard Ingham, a former journalist for the from the attempted bouncer: "Officials have more clearly to tackle those areas where the now. We need - the World Bank, the IMF left-wing newspaper The Guardian before certainly played a full and constructive part private sector is not going to fill the gap. - to show that aid which goes in is very joining the civil service, became almost as in the preparation. Politicians have stated Those are things to do with the provision of effective in getting countries to pursue the famous as his boss, affecting a loud gruff their positions and argued their case very information, transmission of knowledge right policies, in poverty alleviation, in watchdog bark when the press offended improving the lot of the poorest groups. If him and quite happy to savage his former "We have a wonderful carrot in HIPC. you do that, you then start to build up the colleagues. He was notoriously quick-tem­ political support which you need to pered and did not suffer fools at all. We should use that extensively.' achieve the consensus to increase aid fund­ O' Donnell is almost the opposite, polite jng. The hostility to aid comes from a feel­ and comteous, quick to hide his personal forcefully. There is a wide spectrum of and helping to provide those things that we ing, backed up by a number opinions behind views. I am sure we will take the decisions in economists call public goods, particularly of studies, that civil service the best interest of the UK." helping in primary education, especially for allege that aid privilege that Britain's ED is happy to be back: "I lived girls in rural areas. It seems from recent was actually advice tendered in Washington between 1985 and 1988 and World Bank research that assistance is more harmful. We to ministers is I loved it. I was very much looking forward effective where countries have proper poli­ need to demon­ secret. The best to returning. This is one of the best jobs." cies in place. strate that what story he will As to whether the job of ED of the Bank "How do you persuade those countries we are doing is tell about his and IMF should be split, he responds, "I that aren't pursuing the right policies, to not only not Downing Street shall give my advice privately." When change them? I am not sure that I know the hannful, but is years is about a pressed, he adds that in his short time as answer to that." Asked whether the problem actually posi­ visit to Saudi ED, "I have found it very useful to be on is that the Bank doesn't have either a big tively benefi­ Arabia "when both boards. Some of the issues we are dis­ enough carrot to reward a country that is cial. Once you we were going to see King Fahd. There is cussing, such as HIPC, are joint issues. Pay doing the right things nor a big enough stick have done that, you get rid of the nega­ always this mad rush when you get off the and budgetary matters show a strong paral­ to persuade recalcitrant countries to mend tives. How far you can sell the positives, I plane to get into the convoy and make sure lelism, so so far I have seen strong gains." their ways, O'Donnell responds, "I think we am not sure, but I am less cynical. You that you are close to the PM because there He arrived in Washington just in time to have a wonderful carrot in the HIPC initia­ have only to look at the vast numbers of will be press waiting for him. On this occa­ vote for the Strategic Compact, in spite of tive. We should use that extensively because people doing volunteer work, contributing sion, just in the lead-up to the Gulf War, I murmurs that the UK was against it. it is precisely arranged that countries with to charities." was delayed for some reason, so dashed O'Donnell explains that: ''The real test of good track records, those that have been As a university economist before joining out, got in a car and said, 'Quick, follow the compact is in turning the document, the doing the right thing for a long time, can be the government service, O'Donnell gives a that convoy.' When I got out, I was met by vision, into reality. I. and the government, rewarded. I have been involved with debt brief economics lesson for those on Capitol the Saudi foreign minister who said, 'I think fully endorse the vision. The compact is an initiatives for a long time [as press secretary Hill and other places who see aid as a you are in the wrong place. We are just important and a big change, and the board to Nigel Lawson before he joined Major]." waste: "This is not a zero-sum game. If with about to have a cabinet meeting. Your con­ wanted to be sure that it was possible to tum So when British records are opened in a small amount of seed-com money we get voy went that way. '" the vision into reality. So the reason why 30 years time will the name of Gus these countries growing faster and convince The British bureaucrat justifies his low some people may have got that impression O'Donnell be found as progenitor of the them of trade liberalization. countries like public profile: "As a civil servant, you are [of British hostility] is simply that we want­ ideas? He retreats into his modest civil ser­ the US and UK gain enormously. One of the required to implement the policies of the ed to question it in great detail to make sure vice shadow: "I wish. No, it is ministers key exogenous determinants as to how fast government of the day. You might think that that it was possible to deliver the very who give these things a push." the UK grows is world trade growth. What a particular policy is not sensible, but it is worthwhile aims. The will is there. I had a He has faith that a rejuvenated, redirect­ has really turned the world round in the last your job to get on and make it work. You meeting with the World Bank Staff ed World Bank has a vital job: "There are 20 years has been increases in world trade." might have argued privately, internally, Association and I was very impressed with still ways in which the World Bank can be against it, but once the decision has been their commitment to it. The board has a very very effective, but they are changing. Now - Kevin Rafferty 6 June 3, 1997 Unn: Staff trust matters most j ohannes Linn describes the selection of new managers as "like putting the engine III the car, but the rest of the car is terribly important, so is knowing where you are taking the car and who is going to drive it." "Not being selected as a manager is not a death knell, is not the end of the world, is not the end of a professional career in this institution," says the ECA YP. "On the con­ trary, one of the ideas is to reprofessional­ ize the institution... We have raised the weight we are giving to people manage­ ment. The amount of cynicism and the gap Lauren Ptito and Kevin Rafferty discuss the managerial reorganization I between management and staff in this insti­ tution is astonishingly wide; we ought to The question of the hour is whether the business are the clients and the staff. In its growing work responsibilities; tasks will be close that gap, all be talking the same lan­ I gains from the managerial reorganiza­ 50 years, the Bank has been doing a lot for increasingly delegated and decentralized to guage and having the same objectives. It tion will outweigh the pain. Management is its clients and its record in poverty allevia­ the resident staff. The new organization de­ must have something to do with the way confident that they will. Indeed, YP Jo­ tion and development is quite good, but it mands a more open culture; you can't just that we, as managers, treat staff. It cannot hannes Linn says that the present agonizing has done much less for its staff." lock yourself in a little box anymore. It is be but that. How can we maintain and hope will be a mere "blip" in the history of the Finger offers a word from the wise: improving the relevance of our work, enthu­ to build an effective Bank if that gap gets Bank and that the new managers wiH take "Don't let it get to you. Work hard on some­ siasm among country-team members is wider? a cutting-edge Bank into the 21st century. thing substantive. If you can show good high, where a problem-solving attitude pre­ 'We had to fmd a way to bridge the gap, Some staff are not so sure. Those who work, someone is bound to notice, and it'll vails. On the other hand, with the replace­ and the only way to do it is to give more have failed to make the shortlists can see ob­ serve you well. It's like a roller coaster. If it's ment of management layers with a matrix weight to people management. 1 think a vious flaws in the new system. Does it give going to crash, it's going to crash - whether organization, there is also a sense of greater number of us were undue weight to people management over you worry about it or not. So enjoy the ride." work load." surprised by some results? One unhappy candidate declared: "I Meanwhile, former staff member Anna of the outcomes fear that some of the new choices may get Maripuu points out that the reorganization is MODEL MANAGER I of the shortlisting eaten up by the governments they will have only part of wider upheaval. There's still the Ngozi Okonjo-Iweala is the very model committees. But to deal with; being nice to your staff is not new employment policy to come and what to of a modem World Bank manager. She's [the diversity of the enough in this tough world." Or, as a do about the complaints of Non-Regular from a developing committee members woman director not involved in the reorga­ staff that they are second-class citizens. country - Nigeria ­ ensures] the judge­ nization said: "In the emergency room, you and was educated at ment of a represen­ need a surgeon with a steady hand and clear AFRICA OPTIMIST Harvard and MIT. tative group of peo­ eye, not one who is nice to the nurses." Hasan Tu1uy, country director for West­ She joined the Bank ple with no ax to Collegial Linn Old-timer Michael Finger recalls what ern Mrica 2, expresses his happiness about as a yP for the past grind, who have only the institutional bene­ he sees as a better time, when "everyone the changes reorganization has brought to year and a half has fit at heart ..." was a professional, an expert in their field, the region: "The renewal program has no­ been director of the Model: Okonjo-Iweala He rejects the idea that too much em­ and those that became senior professionals ticeably improved institutional change phasis has been placed on getting along pitched in to help run things. But they were l-.~~';""';IiiiiIi!!iII/jojIIII'" things. The new struc­ and strategy department, which has given with people and not enough on achieving economists, sociologists, engineers, fl£St. ture puts the focus her an excellent perspective of how diffi­ results. "I don't think a lack of ability to Now, we are supporting this class of people squarely on the coun­ cult change is, and how tough yet how flex­ achieve results win be a pervasive feature. who do nothing but 'manage'." Others try; it allows for a more ible you have to be to accomplish it. The minimum threshold of effective people complain that the 360 degree evaluation has integrated, strategic Though her VP Mark Baird wants her to management has been raised, and we sim­ been enshrined before being accepted as program and forces a stay on, Okonjo-Iweala has entered the run­ ply have collected more information about valid for annual staff appraisals, and that Optimist Tuluy greater clarity of ob­ ning for the jobs now open. As a member of people's management skills and the two candidates should have been given the jectives and trade-offs. The work program the selection committee for the Africa reor­ things combined have led to some surpris­ chance to reply to criticisms. and budget for a country are discussed in ganization she worked "for three weeks es for all of us. I have no reason to think we The Bank's executive directors are tak­ more open country team meetings, and we round the clock", and understands the con­ are doing the wrong thing. ing a close interest. Jan Piercy of the US continually realign our priorities and repro­ cerns of those going through the process. "The real question is what signals we said it was not the job of the EDs to involve gram resources. We look at the problems to But she wholeheartedly supports the re­ send to our managers. The signal we need themselves in individual cases, and the se­ be addressed, at the strategies, and only then organization within the Strategic Compact to send is that this institution's staff is its lection process looks very good on paper, do we look at the instruments, which wasn't as the way to bring in "new blood and fresh most important asset, and it is going to live "but we must not tum it into popularity con­ the case in the past, when there was a ten­ ideas" especially since the world is chang­ or fall or die by it. If we don't have staff tests. Results, speed and delivery are im­ dency to design projects first and justify ing fast. She is also conscious of the pain who are motivated and who believe in the portant." Russian ED and personnel com­ them later. that may come to someone "who has deliv­ institution and that management is doing mittee chairman Andrei Bugrov noted: "Our resident missions are being inte­ ered for 15, 20, 30 years and is then told, the right thing, we may as well go home." "The two ingredients for the Bank to be in grated into the programs with speciflc and 'you are not the type of manager we need Managerial selection procedures are the most painstaking and fa; This managerial reorganization is sup­ vertised widely both inside the Bank and tees, one for each country director post and within the Bank. Each shortlisting commit­ I ported by the most rigorous and indeed outside in the quest for the best of the cur­ one for sector director or leader, sift through tee is chaired by executive resources. Other painstaking research, inquiry and assessment rent managers plus fresh blood from inside the applications, look at curricula vitae, ex­ members include representatives from vice to make sure that the process is fair and that and highly qualified people from the out­ amine the two most recent performance re­ presidencies other than that for which the the best people are chosen for each job, as­ side world. About 700 people have applied views in the staff file and decide which are jobs are being chosen, external appointees, serts Cathy Cardona, the executive resources for the 170 managerial jobs. Counting those the most competitive candidates. The com­ and two members of the actual vice presi­ manager supervising the selection. who have applied for more than one post, mittees have a wide range of members to dency of the job, one who is a staff member The aim, according to vice president the selectors are having to review more than avoid accusations that a cozy "old boys' from grade 11-17 and the other a represen­ Dorothy Berry, is to find "leaders with ex­ 2,000 separate applications. club" is deciding promotions. tative of the human resources team. cellent technical and people management Transparency and thoroughness are the Human resources is keeping a tight cen­ The qualifications of the most competi­ skills" as well as diversity in terms of na­ watchwords at stage 2 (see diagram), that of tral grip so that there will also be no accu­ tive candidates are then carefully reviewed tionality and sex. Positions have been ad- screening and shortlisting. Two commit- sations of independent fiefdoms developing by checking their references. Taking up of Shortlist committee Applicants • To review candidates' qualities of Approval of shortlist VP ~I Final selection technical and people management. (Sector leader) Interview ", Reference checkers RSVPlMDs Approval of shortlist (Country/Sector director) June 3, 1997 7 Dial 1-800-War-2-Peace Nat Colletta and his team will follow Isaiah's prophecy and teach how to beat guns into plowshares, Phil Hay reports. - W ith the city of Kinshasa fIrm­ says Colletta, who has just returned from a about civilian life, health, job training, and ly in the hands of Laurent trip to Rwanda to check on the status of a de­ access to land and credit. Kabila and his young sup­ mobilization and refugee resettlement pro­ Other measures that Colletta and his porters, the shooting war is over, but the ject there. "We first got involved in post-war team propose are transport to get the sol­ real battle must begin in a country which reconstruction in Uganda back in '92 when diers back to a place where they can begin has been systematically looted and tyran­ we helped President [Yoweri] Museveni put a new life, housing assistance, health care nized throughout its post-colonial history. the pieces back together again and make the and education for their children. This is the battle for a stable peace and eco­ transjtion to peacetime. Then from Kam­ "Sometimes people say, 'why's the nomic recovery. pala, we've been just about everywhere, in­ Bank involved in something like war-to­ talk to concerned staff A priority for the Democratic Republic cluding Namibia, Rwanda, Angola, Chad, peace transitions, what's the link with de­ of the Congo (as Zaire is called now that Liberia, Mozambique, Sierra Leone." velopment?', says Colletta, just off the now, ", and mges better support mecha­ Mobutu Sese Seko has been ousted) will be The new unit will offer fom main services: phone with officials in Guatemala who nisms, especially to help people whose cul­ to demobilize the victorious were anxious about I t heir tures don't allow them to vent their feelings. rebel anny, in particular the bat­ post-conflict initiative. "I But she is conscious that the best support tle-seasoned 15- and 16-year­ say to them, look at all must be given not to the "30 percent who olds in Kabila's army. the people uprooted by make the most noise" but to the 70 percent "You could call it the moth­ conflict in Central and who will come up with the fresh ideas nec­ er of all demobilizations when Eas tern Africa, there's essary to keep the Bank on top of the world. it happens," says Nat Colletta, about 22 million of them. who manages the Africa re­ How can you even con­ HAPPY EX-BANKER gion's war-to-peace transition ceive of development and Aru13 Maripuu left the Bank in March team and is an international au­ lending money for pro­ after seven years as a consultant, recently at , thority on post-war reconstmc­ jects in these areas before EXT, and moved to the IMF. She is glad she tion. "Kabila's got about 60,000 they've mastered the art did. "The Fund doesn't make me feel like a to 70,000 teenage soldiers on of peacemaking? Con­ second-class citizen, like the Bank did. At his hands who've tasted real flict, violence, and devel­ the Bank I was doing the same work as Reg­ power and will now have to opment are inextricably wars, but was cheaper. I went from contract to contract, and each time I was up for re­ surrender their AK-47's and be connected. " absorbed back into productive How to demobilize battle-seasoned teenagers with weapons Colletta credi ts newal I had to renegotiate my terms with­ out support. The system was not interested national life. This is a time for strong lead­ • strategic operational support for Bank Wolfensohn for putting his shoulder be­ in my welfare. Life at ership for the Bank in Africa, helping coun­ staff and client governments (including hind the Bank's war-to-peace initiatives the Bank was full of in­ tries to manage these transitions to peace." rapid-response teams of post-conflict ex­ and giving them the impetus they need­ teresting experiences, The Bank was making contingency plans perts ); ed to become more prominent within the and I had wonderful before Mobutu fled. President James • knowledge building and sharing (best institution. colleagues and some Wolfensohn told Bank's World last month practice studies, Web pages, tool kits, spe­ Despite his constant exposure to the good bosses. But there that once the shooting stopped, the Bank cialist consulting etc.); wreckage and human toll of wars in Africa, was no stability and a would be ready. He later announced that he • fostering of external partnerships with Colletta is optimistic about the continent's pervading sense of Mover Maripuu would send a senior economist from the UN and sister agencies, as well as NGOs future Much of the warfare which con­ being second-class. "At the Fund, I was given a formal job Warsaw office down to Kinshasa to assess such as Oxfam, Save the Children, and sumed its neighbours always had some title and my salary was fixed by equity as­ the reconstruction needs of the Kabila gov­ Care, to coordinate post -conflict work on connection with the old regime in Kin­ sessment, without the bickering that goes ernment. the ground and mobilize joint resources; shasa, he says, so resolving the power on at the Bank. I was encouraged to go for The Bank will almost certainly offer • war-to-peace training for Bank staff struggle in Kabila's favor will certainly training, whereas at the Bank I had to beg emergency loans to the new Democratic and government and NGO workers. have major benefits for Eastern and Central and plead. Even in small things, I feel a full Republic of the Congo as well as its con­ The success of any war-to-peace transi­ Africa. member of the IMF staff. My badge is the siderable experience with post-war recon­ tion lies in absorbing former soldiers back "When I was down in Uganda and same color as everyone else's and doesn't struction in other African countries left into a productive, civilian life. Colletta and Rwanda recently I saw Asian businessmen have an expiry date." dazed and bleeding after years of conflict. his colleagues recommend that demobiliza­ shuttling around looking for a new home She asks if the present managerial reor­ In fact, Kabila's government may well be tion, for example, be linked to normal crop for their money. The Koreans, for example, ganization isn't like putting the cart before one of the first clients of a new World Bank and school cycles if possible. They suggest have just opened a big plastics factory in the horse, and points out: "Everybody in the Bank is concerned about holding on to post-conflict unit, operational on July 1. emergency cash payments to ex-combat­ Kampala. So, when you see those things their jobs and putting all their energies The unit will take the work and experience ants to help them with food, clothing, and happening, you know that things are on the into that. No wonder morale is low. The of Colletta and his colleagues and offer other basic goods, but warns that the pay­ up and up. They say the next century be­ question is whether the long-run benefits them to war-torn countries trying to navi­ ments should not put the soldiers in a privi­ longs to Africa, and I think those Asian will outweigh this period when clients are gate a more peaceful future. leged position. Those who have spent many businessmen are living proof of the move in not getting the best service." "We'll be a bit like 1-800-War-to-Peace," years in the military may need to be taught that direction." st ever, taking hundreds of hours ... COMPETITION .... COMPETITION .... COMPETI six references is the minimum, of whom three are subordinates, two peers and one shortlist are told by human resources, and given information about why they were not PLEASE, SEND US YOUR CLONESCLONESC supervisor. But eight to ten referees is the chosen with the aim of helping their career norm and in some cases, adds Cardona, as development. Vice presidents have to hold many as 14 people have been contacted. face to face interviews with the people they The names of members of the shortlist­ have not chosen to explain why they did not ing committee have not been select them. Finally, Dorothy published to protect them from Berry and the vice presidents undue pressure or influence. and managing directors meet to A recent breakthrough in biotechnology ture woman president of the World Bank? But those involved in the se­ make the final selections. has given humans the ability to replicate them­ Send your cloning dilemmas to Bank's lection express their admjra­ Cardona sees the positive selves (and other creatures). While many her­ World via e-mail (''BanksWorld''). The per­ tion for the care and thorough­ side of the process. "I am ald this scientific advance as the dawn of a new son who offers the wittieS't suggestion will win ness of the questions and pro­ pleased that this is being done era of hope and opportunity, others are trou­ a copy of the bestselling Bloomberg by cedures. "Obviously a lot of so thoroughly and from many bled by the dilemmas it raises. Bloomberg. Libelous suggestions - such as time and trouble is being taken and hun­ different viewpoints. Vacancies are open Bank insiders are already asking: If Mark that there might be anyone in the Bank or in dreds of hours being spent," said one short­ and posted. Selection procedures are open. Malloch Brown were cloned, would the Wash­ public life who cannot be cloned because you lister. Days and nights until almost midnight References are gathered through structured ington Post have to expand its Style section? must use LIVING tissue - will immediately are becoming standard for those involved. questions. There are checks and balances at HRS, meanwhile, is wondering whether be disqualified. Entries must be received by The shortlists are reviewed by vice pres­ each stage of review. There is feedback to G-IV staff cloned in the US are tax-exempt. midnight, June 20, 1997. A selection of the idents and managing directors to ensure the candidates, and we have had a number who And by the way, would it be ethical to pro­ best entries will be published in a future issue Bankwide quality before the respective vice have said that though they did not like the duce 10 Ngozi Okonjo-Iweala clones per year, of Bank's World. The contest is open to all presidents conduct interviews to make their bad news they were given, they were grate­ hire them as YPs and tbus hope to put right Bank Group statI. The decision of the Editor selections. Candidates who fail to make the ful to hear the comments." gender and part n imbalances and find a fu­ is fmal. Please, no duplicate entries. 8 June 3, 1997 STAFF ASSOCIATION ... NEW DEPARTURES ... NEW DEPARTURES ... NEW DEPARTURES ... ACTION, NOT VISION, IS THE PROBLEM Frank aims to be no mere rainmaker @J R ust ten years ago, the ichard Frank admits to mixed emo­ emerging markets finance finn and to look under Robert McNamara and "his call for Bank Group launched a tions about leaving the World Bank forward to 10 or 15 years to throw myself an attack on rural poverty, in which I was major reorganization. The Group at the end of the month after into that exercise." more than a foot soldier, one of Vhe frontline published vision statement for 27 years: there is the sweet sorrow of part­ He has been one of the handful of man­ lieutenants or captains working on projects that reorganization included reorienting ing, especiaHy leaving work still to be done; aging directors of the Bank since former that increased production in agriculture and the Bank as a knowledge-based institution, on the other hand, he faces fresh challenges president Lewis Preston called him in also improved the standard of living. That cutting across institutional boundaries, of practicing what he has tried to preach and November 1994 on a visit to Australia and was a very exciting time. We were really adapting to a changing external environ­ the excitement of developing emerging asked him to take on the job, an event com­ implementing his vision. ment, getting closer to our clients, and markets in the actual marketplace. memorated by an inscribed (but unused) "[When I moved to IFC] I was involved achieving cost efficiencies. President James Wolfensohn announced cricket ball since the Australia trip gave in the birth of the emerging markets. Under Did we achieve our goals then? Obvi­ that Frank, one of the five managing direc­ Frank his first opportunity to watch a game. David Gill we really developed the vision ously not, for here we are, ten years and tors under him, would become managing Before becoming managing director, he had that you could get private capital to go to two reorganizations later, going about still partner and chief operating officer of Darby been vice president and chief financial offi­ these countries in a portfolio form, and we another reorganization with the same Overseas Investments, worked on what we called goals still out there. founded by former US trea­ the plumbing, which was to Reorganizations seldom fail for want sury secretary Nicholas get the countries to build a of vision statements. Brady. Frank says that he domestic system of securi­ The reason they fail is because the will plunge straight into his ties regulation, to set up process of translating vision statements new job without a break: "I stock exchanges, investment into action breaks down. At some point, leave the Bank on June 30 banks. We did it in East Asia, we lose the connection between vision and start at Darby on July 1. we did it in Latin America and action. We know how to cut costs, but "It's mixed emotions. It's and put in place the 1aunch­ we lose our way in translating cost-cutting hard to bring myself to imag­ ing of the very fIrst of the into creating value for our clients. ine that I will no longer be in country funds, the Korea An illustration: in order to promote this fascinating institution Fund. We were ridiculed and flexibility in deploying resources, the with these incredible col­ laughed at in Wall Street Bank introduced dollar budgeting a few leagues trying to make a dif­ when we tried out the idea years ago. A major outcome of dollar bud­ ference in the world at a fun­ and very discouraged by geting was a dramatic increase in the use damentallevel. It's also hard governments who thought of consultants. But how much value has to leave behind some of the that hot Wall Street money this new flexibility in staffing created for initiatives we had started to would disrupt their markets Richard Frank: tailor·made for world·class finance our clients? How do we know? get the Bank Group and the and they were not interested We believe that staff morale is current­ private sector working closer together and cer of IFe and had helped establish the cor­ in getting these portfolio flows. ly low precisely because staff perceive a to get private capital into parts of the devel­ poration as a triple A borrower on the glob­ "The second strategic decision at IFe disjunction between management's ability oping world where it is not now going al capital markets. When he took over as was to establish it as a borrower in its own to develop vision statements and its abili­ through guarantees and other vehicles. president, James Wolfensohn asked Frank name, against a lot of skepticism, inside ty to translate those vision statements into "On the other hand, I can say I have been to be chairman of the private sector devel­ the Bank and in the markets. I personally the creation of value for the Bank and for preparing for this [move to Darby] all the opment group to create a more coherent directed that whole effort, pounded the our clients. There is little confidence 27 years I have been here, to go off to the approach between the Bank Group and the pavements to sell bonds, went through the among staff that freeing up dollars by cut­ emerging markets finance field. Given my private sector. agony of getting the credit rating. What ting staff and, potentially, benefits will background, I have done so many things to "It was almost tailor-made for me, given came out of that was more than the estab­ create value for our clients. There is little position me for just that. Also, private my experience in both the Bank and IFe," lishment of a world class borrower. We confidence among staff that sound man­ investment is becoming such a big force adds Frank, noting that he had told Preston had to change the way we did business, agement choices can be made when the that maybe individuals who have worked at that "I always wanted to go out [into the establish profit and loss centers. Out of performance management system has yet this from a multilateral prospect can go off marketplace] ." The time is now ripe, he that came an association with the markets, to demonstrate that it is oriented toward and do it, add some value and credibility, believes. ''The emerging markets continue so that the banks who came to underwrite creating value for our clients. There is lit­ and that will be good for the movement. So, to do weU and are moving into a phase our bonds, began to understand our busi­ tle confidence among staff that, with the I am not turning my back on the field, but where investors need more seasoned people ness and become partners in co-financings. inadequacies of our time recording sys­ just continuing it in another form." handling their funds. They want to put more We began to understand products better tem, the Bank yet knows how much work Frank added that in any new career he money into the emerging markets, but want and introduced floating rate notes, swaps it takes to make a successful project. wanted to be an active manager, a principal to be more discriminating. After Mexico, the and became just much more knowledge­ With the approval of the budget for the and equity shareholder and feared that if he investment community said, 'Yes, we want able." It is a range of activities and con­ Strategic Compact, the Bank Group stands delayed, he would be consigned to the role to put more money in, but we need people tacts that constitutes not a bad resume for at a critical crossroads: we have resources of general adviser and rainmaker. "I want to who understand these economies and where a new mover and shaker of the emerging available to make some significant be an executive with an equity position in a they are likely to go up and go down. '" markets. changes. We in the Staff Association firm that I can help build to a world-class Frank recalls his early days in the Bank - Kevin Rafferty believe that the measure of those changes will be in how much value they create for our clients. So far, the beginnings of the Ghana girls surprised Americans don't know Africans have houses changes have been strong on vision and "A lot of children are today not in school Girls in the US asked fascinating ques­ children study anything about Africa; the cost-cutting, but short on the analysis of because their parents cannot afford to pay tions: Was Ghana "old fashioned"? What languages other than English spoken and the process and incentives/disincentives the high cost of school fees. Can the World type of houses are there? What work do taught, and whether there are children in for how we create value for our clients. We Bank talk to governments to allow such women in the resident mission do? The lan­ America who do not go to school; and so on. need measurements. We need benchmarks. children go to school without paying fees?" guages spoken in Ghana; whether there are Ayesha, aged 9, said that she was con­ We need quantitative and public criteria. This question came from lO-year-old cars in Ghana; what subjects are taught in vinced that more girls need to go to school We need to know clearly and concretely Lauric from Accra. She and 23 other schools? What would you do to increase the longer and reach higher levels of education what we mean when we talk about creating schoolgirls visited the Bank's Ghana office number of female workers in industry? How so that "society can be improved". Michelle value, especially for those aspects of value for "Take-your-Daughter-to-Work Day". A can we abolish racism? If being a housewife could not believe that there are still children that cannot be captured by spreadsheets. televideo conference with more than 300 was a good idea. The Ghanaian "TV stars" in the US who not know that Africans live We still have time. Let's do it right. girls in HQ was one of the highlights . asked, in tum whether American school­ in houses. ~ By our Accra Reporters ... CLASSIFIED ... CLASSIFIED ... CLASSIFIED ... CLASSIFIED ... CLASSIFIED ... CLASSIFIED •.. APT. IN COPACABANA BEACH. Avail. for 10 APARTMENT FOR SHARE/SUBLET. Rockville entire unit $800 or IBR $400. Call x.36689 or (301) mi. Dark green (almost black). $21.000. Call Adelina wks or two 5-wk. periods, Dec. 25/97 . Mar. 10/98. (Rollins Park Apt.). Spacious, furnished 2BR wlbal­ 572-6952. Paiva, x87223 or (301) 913-2990. 10th fl., glorious view. tBR wIBA, Ig LRJbar, sm. ter­ cony. Short walk to Twinbrook metro and mall. Pool, ROOMMATE WANTED. Arlington. Non-smoker to FOR SALE. 1995 Kurzweil Mark X Ensemble Grand race, dressing nn., kitch, maid's BA. All white mar­ tennis. For share: female non-smoker, $450/mo. inel. share modem. 3-story townhouse, 4 blocks from Cour- Digital piano (full keyboard) $4500. Call Joseph U. , ble, furnished and equipped, charming. US$ 9,750 for utils, cable TV. For rent: $870 plus utils. Call thouse Metro. Private BA. cac, wId, hdwd floor in (301) 352.8117. 10 wks, inc\. maid's salary and mils. Max. two people. Haiman, x39334 or e-m hxia@ifc.org. LRlDR, gas ftrepl. Near shops, movie theatre, res tau- RIDERS NEEDED for dependable carpool, one~way I - - - . , - - - - - - - - - - - - - - ­ Fax (55-21) 541 1177 or x36043. CONDO FOR SALE. 26th & Penn., NW (Foggy rants. No pets. $475/mo. plus lI2 utils or best offer. or roundtrip. Meet/drop-off at Winexburg Manor APT. FOR SALFlRENT. Bethesda. 2BR plus loft, Bottom). Jr. IBR, wId in unit. Modern kitch. w/good Call Phuong Pharo (703) 812-%61. Apartments in Silver Spring (or other location). Work 2BA. firepl. Hdwd, skylights, deck. Tennis, pool, walk cupboard space. Approx. 600 sq. ft. $122,000. Call SEEKING LONDON FLAT RENTAL. American hours 8:30.6, AWS schedule. Call Chitra, x32252. to Metro. Call Ms. De Leon, x38612 or (301) 816­ (202) 342-0835 or (202) 293-4332 (leave message). Londonphile seeking studio or 1 BR for 3 week holi· 0226 (evening). day in Sept. to mid-Oct. (dates flexible). Central, near Send your ad via e·mail to BanksWorld. Bank's CONDOMINIUM FOR RENT/SALE (assume APARTMENT FOR RENT. Bright, spacious fur· loan) in Beltsville - 2BR, 2BA, walk·in closet, bal­ Tube. Call Cindy, x80211 or (202) 237-7423(H) . World reserves the right to edit for style and length. nished studio in De. $650/mo. incl. utils. Call (703) cony, wId, w/w carpet, ceiling fans, pool, car wash FOR SALE: 1994 Nissan Pathftnder SE. 4 doors, The classified ads are a service to Bank staff, NOT 768-6003. facility. 2 min. to 495. Quiet neighborhood. Rent 4'WD, V6. Leather seats, sunroof, airbag, Ale. 26,000 commercial advertisers. June 3, 1997 9 ... BOOK REVIEWS ..• BOOI{ REVIEWS ... BOOK REVIEWS ... BOOI{ REVIEWS ... BOOK REVIEWS FIRED AT 39 AND UFE BEGINS How Kevin Rafferty compares and contrasts a real life business story with the textbooks to safeguard Indonesio's riches I ndonesia stands out with Brazil as one P oor Mike Bloomberg! Having much common sense and practical of the most fascinating countries in the served loyally for 15 years of wisdom in his story that it should be world for the richness and variety of its high-pressure 12-hour days textbook reading as an antidote to resources and the immense challenges that and six-day weeks, having won gar­ business school prescriptions. they present. Bluntly, the question is to how lands of praise for his performance The other books are the best of to manage, preserve and develop them: sat­ from inside and outside the company, standard business books, all includ­ isfying the needs of today's generation at the age of 39 he was thrown out on ing checklists of dos and don'ts that while leaving plenty for tomorrow. Critics the street, sacked on a Saturday in uncomfortably echo Maoist dogma. would use stronger and more emotive August 1981. Well, actually, not quite John P. Kotter of Harvard Business words, like "greed" and "plunder" to so poor. When John Gutfreund, man­ School provides an action plan for describe the threats to the rich but delicate aging partner of Salomon Brothers, change that seems so obvious as to ecosystems of the two countries. told Bloomberg, "You're history," he make you wonder why anyone These two volumes on the ecology of also handed over $10 million. should pay to receive it, except for Kalimantan and of Java and Bali reveal the Gutfreund was wrong. Far from the fancy diagrams and charts that treasure trove of riches of Indonesia, but the being history, Bloomberg's story was make it look learned. Kotter claims imminence and the immanence of the dan­ about to begin. He started what he that classical prescriptions of total gers. The lead authors of each book work hopes will become the world's biggest quality management, rightsizing, for the World Bank as biodiversity special­ media empire. He's not there yet, but restructuring and so on fall short ists and here show professionalism, techni­ a billion dollar business bearing his Bloomberg no longer has to fix machines in a taxi because they fail to alter behavior. He cal excellence and an ability to fit their name and thousands of investors who know the curveballs and sliders that real life makes a useful distinction between leader­ scholarship - presented with wonderful would find it hard to live without will throw and it is disaster if you cannot ship, which is essential, and management, gentle humor, as the cartoon indicates ­ Bloomberg's online information services respond flexibly. Go for it without second­ which may emphasize bureacracy, arro­ into the wider perspective of society. illustrate the challenge to long-established guessing your creativity. Bloomberg gance and block leadership and change. Too often, scientists and technical giants such as Reuter and Dow Jones. knows: he only sorted out the bugs in the Winning through Innovation has funky experts affect a narrow blinkered view, so Indeed, in online services Bloomberg has system he was providing to Merrill Lynch diagrams, but some look more like records the Bank managers must ensure that such virtually destroyed some competitors and in the taxi on the way there, and did not of baseball hits or Sir Don's or Gavaskar's talented people as Kathy MacKinnon and left others trailing. realize he had been successful until he boundaries than anything from business life. Tony Whitten do not become an endan­ Even the bullsh*t factor in Bloomberg's turned the machines on. Robert P. Bauman and his colleagues list gered species here. The lessons of such ebullient story lends excitement to its As for banks and venture capitalists, the "five requisites" for a company to books are that species are in danger telling. Students of management, change or consider them "your worst enemies" since become and stay the best: "a winning atti­ because their importance is not properly how to build a business would be well they demand five-year projections "in a tude; the organization as hero; cumulative understood, because protection plans are advised to junk many of their set texts and world that makes six-month forward plan­ learning; strategic communication; aligned study how Bloomberg made it. His story is ning difficult, even for stable and mature behavior and strategy". They tell how full of aphorisms and nuggets of wisdom businesses ... Often, they kill off what's dif­ Beecham merged with SmithKline and which could usefully become part of good ferent, special and full of potential." defied critics who said it would fail. management lore, if not law. Bloomberg makes a habit of tilting at Bloomberg by Bloomberg with invaluable For example, he dismisses "goodwill" as conventional wisdom: on sal.aries - he help from Matthew Winkler; John Wiley; 261 "the accounting treatment for paying too boasts he receives the same as the lowest­ pages; $24.95. much". Managers he notes, "are human paid member of his staff, or $19,000 a year; Plus, from Harvard Business School Press: Leading Change by John P. Kotter; 188 beings, too, with personal interests, egos office space; perks; the start to the working pages; $24.95. and insecurities similar to real people (the day - 7:30 or earlier; the need for constant From Promise to Performance by Robert P. people they supervise)." training and improvement; and the absolute Bauman, Peter Jackson and Joanne T. Bloomberg's recipe for success is a loyalty to Bloomberg that he insists on. A Lawrence; 302 pages; $27.50. vision that is affordable, practical and fills a perfect world would not work with too Winning through Innovation by Michael L. customer need. Work out your plan in logi­ many Mike Bloombergs, and it's easy to Thshman and Charles A. O'Reilly ill; 259 half-baked or not properly policed or cal detail, then rip it up because you never argue with some of his views, but there is so pages; $24.95. because the species get in the way of peo­ ple pursuing policies of growth or econom­ ic maximization without understanding the Not quite the world's most powerful man long-term effects. The volume on Java and Bali is the more C hairman of plummeted by 508 points or 22.6 percent in ering the Fed on a daily basis and knowing thought-provoking simply because the two the US a single day, a drop that John Phelan, presi­ Greenspan before he succeeded Volcker. islands are densely populated and the Federal dent of the New York Stock Exchange, The raw material of the history of the demands of human beings are so pressing. Reserve Board described as "as close to a fmancial melt­ Greenspan years is here, recounted on My main quarrel with a work that is so rich Alan Greenspan down as I'd ever want to see." (In its "Black almost a blow by blow basis, enlivened by in wisdom is that the authors would have (right) IS widely Tuesday" crash of 1929, the New York mar­ direct quotes from most of the major play­ benefited from a more thoughtful editor. renowned as "the ket fell by 11.7 percent.) Greenspan, who ers except the Fed boss himself. For all this, This is not a grumble about some over­ most powerful man @ had taken over from Paul Volcker two the book is a disappointment. American spelling - "advizable" for in Washington" or ~ o months earlier, made the crucial statement Greenspan remains elusive. This is not example - but whether to reduce some of even "the most pow­ that the Fed "affirmed its readiness to serve entirely Becker's fault. The Fed chairman the 101 philosophizing and to put the advice erful man in the world". Wall Street and, as a source of liquidity to support the eco­ flits through Robert Reich's recent account on changing lifestyles into an appendix. following its lead, every other stock market nomic and financial system." of the years of President Bill Clinton's first MacKinnon and her coauthors are also in the world trembles before the Fed sets Nervously, confidence returned, the term with the shining charm of mercury. concerned about the destructive and thought­ interest rates and may soar or plunge when economy picked up. Today, in spite of bouts But, though he has to be careful in his pub­ less hands of humans. Kalimantan is the Greenspan opens his mouth, however ano­ of hiccups over the US budget deficit and lic utterances, Greenspan is a friendly sort Indonesian part of Borneo, the third largest dyne or delphic his utterance. over Mexican debt, the US has seen six of chap, the opposite of a monk, carefully island in the world after Greenland and New President Bill Clinton blasted the Fed as years of steady growth while unemploy­ cultivating friends everywhere, as Reich Guinea, according to the authors, which the most wicked kind of ogre, declaring that ment has fallen to 4.9 percent, way below found. The other fault is that Becker as a might surprise Australians. Like Brazil's a balanced budget amendment "could give the 6 percent rate previously thought to be news agency reporter is great at describing Amazon region, Kalimantan is sparsely pop­ the unelected Federal Reserve the power the trigger for inflation. The Dow has gone the leaves in great detail, but less good at ulated, jungly territory rich in mineral not only to raise your interest rates but also from record to record, crossing 7,000 and capturing the trees, let alone the forest. resources, though with poor soils. It is a test to cut spending on things like Headstart, then 7,200, so that Greenspan questioned As to the larger question of Greenspan's of our civilization whether this important childhood immunization and educational whether such stock market values were sus­ real power, Becker sees the Fed chief as a global center for biodiversity can be pre­ opportunities for all our children." Not tainable. Wall Street duly twitched, but hero in the grand sense, but does not go served from the depredations of humans. quite up to the iniquity of the Big Bad Wolf, quickly shrugged off the Fed chief's nerves. along with the view that he is a god. This is The Ecology of Kalimantan by Kathy but getting there. But even Clinton had to Becker himself has achieved minor fame surely correct. Indeed it is a sad commen­ MacKinnon, Gusti Hatta, Hakimah Halim bow and choose Greenspan for a third term as a financial writer whose reporting moves tary on the games played in the Washington and Arthur Mangalik; 872 pages. at the Fed or "a major fracas would devel­ markets. No less than trader turned scrib­ sandbox that the head of the Fed is so influ­ The Ecology of Java and Bali by Tony op," writes Steven K. Becker. bler Michael Lewis - of Liar:~ Poker fame ential. Whitten, Roehayat Emon Soeriaatmadja and The author praises Greenspan as the man - paid tribute to Becker's influence in an Back from the Brink: the Greenspan Years by Suraya A. MdT; 1,028 pages. who pulled the world back from the brink of article in The New York Times. If any Steven K. Becker; John Wiley; 452 pages; Both published in the US by Charles Thttle; in Europe by Oxford and Asia by Periplus financial meltdown on "Black Monday" in reporter knows Alan Greenspan, Becker has $29.95. Editions; US price $49.95 each. October 1987 when the Dow Jones index the closest claim, through 20 years of cov­ -KR -KR 10 June 3, 1997 H appy hou,r for I abandoned babies T he May 16 happy hour at the Bank was special for more than just the tropical theme and the knockout rum punch; it also raised $1,000 for the Chi Child Care Center, a transitional home for "boarder babies" - infants born in area hospitals, often to drug-addicted mothers, and abandoned there. Chi Eta Phi sorority, an international organization of professional and student nurses, provides a loving home for these babies, who would otherwise face months in hospital without a medical reason. The group's Alpha chapter runs the eight-baby DC'S TOP CHEFS SHARE THEIR SECRETS WITH BANK center, caring for and nurturing their Look out for a rash of dinner parties in the corning weeks ­ Jose was incredibly entertaining - so genuine about his philos­ charges until they can be placed in perma­ The recent graduates of the "Home Cooking" classes organized ophy of food; it comes from his soul." Wagle, who has attended nent homes. by Community Relations, Marriott Food Services, and Share cooking school, found the recipes "delicious yet surprisingly "In 1989, when crack became a real Our Strength are ready to show otT their culinary skills. easy." A second series of classes is already being planned. problem, babies - many of them born "It was wonderful," said Sanjay Wagle (above, third from addicted - were being abandoned in hos­ left) of IFC's infrastructure department, who attended May 13's Pictures show: (left) Chef Jose Ramon Andres explaining the pitals. We wanted to start a project - our "Latin Extravaganza", with chef Jose Ramon Andres of Cafe fme points of smoked salmon and coconut terrine; Chef Susan motto is 'Service for Humanity' - and Atlantico and Jaleo. "I'm a great fan of nuevo latino cuisine, and McCreight Lindeborg and her julienned chayote. decided to establish a home for these babies," said Margie Word, the center's executive director, who was chapter presi­ dent at the time. "Howard University, Bank's bikers are wheelers, not dealers which had a big problem with abandoned babies, had already identified an empty building, and WHUR had a telethon to O n June 15, the second annual BAW 100 Tri-City Century will take partic­ ipating pedalers from Baltimore to Annapo­ tration information, call (202)686-5879 or visi t http://www.erols.comlbaw100/. man-Walker Clinic and Food and Friends, which provides meals to AIDS patients (and where Strange volunteers). Staff wishing to raise money for renovations. The center lis to Washington, DC without driving the taff cyclists are active in other charity support Strange may contact him bye-mail. opened in August of 1989," she explained. The center is like a home, with round­ Beltway, the Parkway, or Route 50. There S rides as well. About 30 Bank staff rode the-clock highly trained staff acting as sur­ rogate parents. There is one staff member are loo-mile, 50-mile and 25-mile routes, with fully stocked rest stops, mechanical assistance, maps, and cue sheets. The event in the Maryland and Virginia MS Bike Tours on the weekends of May 17-18 and May 31-June 1, respectively. And on June M ore than 200 Bank staff are frequent bicycle commuters. Bicycle parking is free in Bank-owned garages, and there per two babies aged 0-2, and one staff will raise money for Wheelers Not Dealers, 19-22, several staff, including ITS's are locker rooms for commuters in the E, J a local coed development and adventure Richard Strange, are planning to cycle 350 and I buildings. (Members of the H build­ program for urban youth, as well as the East miles to Raleigh, NC in this year's AIDS ing fitness center can use that facility as Coast Greenway Alliance, a regional group Ride. Strange raised $1,000 from fellow well.) The World Bank Staff Bike Club is established to develop a city-to-city multi­ Bank staff last year, and several hundred an informal group who share information use trail system that will eventually extend more from other sources. The minimum on bicycling and bike commuting.To find from Maine to Florida. This is not a pledge pledge amount this year is $1,700, which he out more about the club, check ride; the entrance fee is only $30 ($15 for has almost raised. He has put an interna­ http://www-int/htmI/extracur/bike/ those under 18). The BAW 100 also fea­ tional spin on his effort this year: "Once I index.htm. tures "Challenges", whereby groups from hit $1,700, I will ask those who want to help companies, police departments, youth clubs and bike clubs try to rack up the most mileage and the highest average mileage. to send their contributions directly to the International HIV/AIDS Alliance, which is in London and works with NGOs in Africa T he June 27 happy hour will benefit the Washington Area Bicyclist Associa­ tion, which promotes safe, convenient, pur­ Last year, the World Bank Group, which is and Asia," he said. 'That way staff can help poseful and recreational cycling and runs also an event sponsor, won the Corporate international AIDS efforts, and 100 percent the Bike Commuter Hotline - (202)872­ Challenge. Volunteers are needed for pre­ of the donation will go to the cause, since 9831 - which offers advice to new com­ ride and ride day activities, and will receive there's no overhead to worry about." The muters. Their home page is at member per toddler aged 2-5. Each baby a free t-shirt and ride registration. For regis­ local beneficiaries of the ride are the Whit­ http://www.waba.org. has its own "mother", who has chosen that baby to care for. The children are cuddled, ... LETTERS . . . LETTERS ... LETTERS ... LETTERS ... LETTERS ... LETTE read to, taken to nursery school, and they leave with an album of photos, mementos, Art is part of our life and experience LARGE TREES BRING and information about their fust home. NEW LIFE TO ATRIUM About 80 babies have been placed in families so far. The center tries to place R egarding the controversy over nude stat­ ues, [Bank's World, Letters, March 24 an artistic environment. I think exposure to various arts is an important part of employ­ children with relatives, but has been able to do so in only 10 cases. The rest are either and April 15]: As the arts embody our differences, our individual ees' overall working conditions. By exploring various artworks, I was delighted to see the introduction of several large trees in the atrium to dilute the sterile and austere impact of reflective adopted or put into permanent foster care. viewpoint, I appreciate the Bank's we can expand our experiences glass and steel with a splash of green. Word recalls the fust time they succeeded efforts on bringing various exhibi­ and imaginations, which can There is still far too little that is alive in this in reuniting a child with its biological fam­ tions, performances and other extra enhance our creativity and effi­ central common space, but one step away ily: "The baby went to the father. He was a activities on arts. Though staff do ciency in work. Therefore, it is has been taken away from the echoing, young man; the social worker had located not actively participate in the not necessary to limit the range in engulfing emptiness of the atrium. And for him but he was fmancially unable to care events that the Bank offer, they are selection of artwork, particularly that I am grateful. for his child. When he was ready and able, already living in the artistic envi­ in a workplace like the Bank Jon A. Hitchings he came for his baby. He didn't have any ronment. Whether or not we are conscious of which reflects muliticultural taste, various idea what to do - we spent hours with the role of art, art is a part of our life. interests and an international view. him, teaching him what he needed to Art cannot be separated from our bves. Eun OkLee know." Only one child has ever made it to Art is the way we live our lives. I don't five without having been placed. The event was sponsored by the World think nudes should be banned in the work­ place because of possibilities of misunder­ I couldn't agree more with Rachel Yoka and especially with Gianni Zanini in their support for artwork display at the Bank BankIIMF Caribbean Association, a forum standing of art. Does the staff think that [Letters, April 15]. In fact, what bothers me for discussion of Caribbean affairs and a such art is pornographic, subversive or even most is the way these beautiful pieces are source of education and information about offensive? I am confident that most Bank displayed: below eye level. Maybe putting the Caribbean for non-Caribbean nationals. staff are not only culturally open and diver­ them on a higher pedestal and bringing Contact Rita Archer, x82500. For informa­ sified but also pursue higher standards of them to a pleasant average adult eye level tion on the Chi Child Care Center, or to vol­ art instead of stereotypes of artwork. would do them more justice? unteer, call (202)388-8660. To adopt or There are many characteristics in the Gordana Dolenc, Another Art Lover become a foster parent, call (202)724-3990. arts that can enhance our lives. Through the Community Relations organizes the monthly happy hours, which benefit local arts we can have enjoyment, artistic stimu­ lus, curiosity, and even comfort. The arts I would love to see Michelangelo's male nudes in every Bank lobby. non-profit groups. Call Yossi Hadar x31791. can add flavor to our work when we are in Sandra Vivas June 3, 1997 11 ... OPINION ... OPINION ... OPINION ... OPINION ... OPINION ... OPINION ... OPINION ... OPINI and offered them as much as they wanted." BOLIVIAN PEOPLE GIVEN LETTER FROM HEAVEN "And Western governments?" I went CHANCE TO BE PARTNERS Y Ou know, I'm beginning to enjoy on. "What was their attitude, if I may ask?" myself. The perpetual bliss they inflict on one up here can pall after a time, and I don't ------ "Oh, they positively forced money on those debtor coun­ tries. You see, the oil produc­ President Gonzalo Sanchez de Lozada explains why his country require my mathematical train­ ers created a gaping hole in ing to tell me that the period the world economy with all decided not to follow the classic privatization remedy and one has spent here so far is as that money they couldn't opted instead for capitalization. nothing compared with what spend, so the fashion was to they have in store for us. So I recycle it." T he net worth or book value of vatize, you are obliged to downsize to start [Bolivia's] long-distance tele­ getting your money back. So the new own­ regard the chance to commu­ "So it suited the lenders?" phone monopoly, domestic and ers really squeeze and try to get a very good nicate with Bank's World as­ "Very much so." international, was $130 million. STET dividend flow to start showing their share­ well, an earth-sent blessing. "But one now reads that some from Italy came in with a $610 million bid, holders that they are making money on this Funnily enough, both the Bank and govenunents in the west are being meaning they were willing to contribute to pri vatization. And the second thing is they the Fund came into my mind only the quite niggardly in their approach to the company $610 million to own SO per­ defer investments as far ahead as they can. other day. I was in the Ambrosia forgiving the debts that those cent of it. MCI was willing to contribute The big problem is that these businesses Bar, settling my monthly African countries, for $30S million, and the Spanish telephone [in key areas like electricity supply, rail­ account (they are very trusting instance, cannot repay company was willing to put up about roads, telecoms, transport] desperately need in these parts, and the credit is or even service." $146 million. good management and a lot of money spent quite good) when the subject of "Too right, Maynard. It is interesting to note how big the range on the expansion and the modernization of debt inevitably came to mind. They're all very worried was. If you look at the telephone company, their service. So it made a lot of sense to Debt has become associated with • about moral hazard." it had about $170 million in assets, $40 mil­ give them that money, where privatization Keynesian economics, although I , ''This 'moral hazard' lion in debt, $610 million in cash. I don't would deprive them of it. myself was never a believer in being I keep hearing about. It know why they bothered to connect the interest on the cash. We also felt that capitalization would telephones. All they have to do is collect the address a deep problem with privatization. What is wrong about privatization is that it [The aim was to achieve] privatization gives countries time and excuses not to get To forgive is divine through a capital contribution, which is the their fiscal situation under control. It is real­ in debt through thick and thin. The whole is a phrase that was not around in my day. heart and the essence of what we are trying ly burning the house to pass the winter. point of my analysis was that debt eased the Does it mean that you punish people pour to do with capitalization. Everyone lives happily until there is a cri­ thin parts of life - whether private or gov­ encourager les autres?" [I was given the idea by an Indian friend sis. Experiences in Latin America and enunental - and that, in times of plenty, 'Well, that's not how it's usually put, from my childhood whom I asked]:"How round the world have shown it: you have a the debt should be repaid. Speaking for but I suppose you could say that." has land reform affected your life?" And he wonderful time as you spend the money on myself, I have never had any problem with "So you don't forgive debt because said, "Well, we got the land, but we didn't public works, but you don't really get down the concept of balanced budgets; the art lies you're scared they, or somebody else, will get the technology, the seed, or the financ­ to getting tax collections up and expendi­ in the timing of these things. It is amazing do it again - or, should one say, not do it ing to be able to do much with the land." It tures under control. how one's views get distorted. again?" was evident that they had lost all the struc­ So, our second postulate in capitaliza­ But what has been interesting us in the "Yes, I suppose you could put it that ture of services and the middleman process tion was not to give the money to the gov­ Ambrosia Bar recently is the goings on in way." that the landlord provided. He continued: "I enunent, but to the true owners. They were Zaire - or the Democratic Republic of the "But they can't pay anyway?" have three choic­ the companies of Congo, as I believe we now have to call it. "Oh, no, they certainly can't pay." es. One is to sell the people and had (All these Congoes: death can become I retlected on this for a moment. "But the the land. But been paid for confusing.) We read, in the Paradise Edi­ goods they bought from you with the money although I may through inflation, tion of the Financial Times, that investment you lent them helped to keep the western use the money taxes and all sorts bankers were queuing up to see the rebel economies going during a difficult time?" wisely, in the of instability and leader even before he got to the capital (I "Yes, sure it did, Maynard - in a posi­ health and educa­ sacrifice. refer to Kinshasa, not to the capital Mr tively Keynesian way, you might say." tion of my family, So we took Kabila wants to get his hands on from the "Well, I can see considerable problems at the end of my the shares that bankers). This episode has prompted all in being too concerned with moral hazard. life I wil'l have no belonged to the sorts of reminiscences from recent arrivals In Cambridge, England, in the old days we land and no Bolivian people at the Celestial Heights Hotel about the used to talk about cutting off your nose to money. and had to decide rush to lend to Zaire and other countries in spite your face. If I were you I'd say it's "Another pos­ how to get them the 1970s and early 1980s. time for a new beginning - wipe the sibility is to go to back to the people. "Did you," I asked the former chief whole slate clean and help those economies the moneylender I had the idea that, executive from one New York investment to get back on their feet." in the village and as they have done bank, "make your lending decisions in "There's not much I can do about it from borrow money, in some eastern those days in accordance with sound bank­ here, Maynard." but I would then European coun­ ing principles?" "I'm sorry - I was forgetting. I'll make become - again tries, to give the "You must be joking, Maynard," said my views known to higher authority. After - a serf, because o shares to every­ my new-found banker friend. "We asked a all, to err in lending is human, but to for­ of course," he ~ body of majority few routine questions about their give debt is divine." added very wise­ d age. But the Boli­ economies, got onto the subject of their "Oh Maynard. Ouch. You can buy me a Sanchez de Lozada: giving money to the true owners borrowing programme as fast as possible, double nectar for that ... " - KEYN ES ly, "there are three vian people wisely things that grow while you sleep: children, rejected this, especiaUy women, who said, I crops, and the interest rate. So there is no "If you give them some shares, they won't way I can pay the interest." know what it is worth, and my husband will As you know, moneylenders in villages spend it at the bar or my son will spend it on THE don't lend money at very low interest rates. loose women." So he [had the solution]: "What I do is I go and he puts up the money for seed and fer­ So this led us to create the first universal to my godfather, who lives in the village, social security for people over 6S years of age, called Bonasol or solidarity bonus. NEWSROOM tilizers, and we work the land together. Somebody said to me: "I am 6S. r hope to ANNOUNCES ITS NEW When we have a bad year, he gets back his live until I am 8S. That means I can buy 20 WORLD BANK LOCATION capital, so the next year he can buy seed and cows because a Bonasol is equivalent to a fertilizer, and I get enough to survive. If we cow, and those cows will have cows, and I have a good year, he makes a very impor­ will start the first year having milk for my ROOMMC1212 tant profit, and I have a very good standard family. From the second year, I will be able 1818 H STREET LOBBY of living." to sell milk to the town and from thereon I This was how capitalization was born. will be a small cattle rancher when I die and Basically, it was based on this idea, which my family will be sorry to see me die, but PROVIDING is deeply embedded in Bolivian agrarian now they would look forward to my dying society, that you don't sell something. You quickly." I MAGAZINES & NEWSPAPERS set up a SO-50 partnership. This is one of the most important devel­ FROM THE WORLD OVER [By comparison] when you privatize the opments in laws known to mankind first thing you have to do is downsize. because it is the only one I know where it These are state-owned companies. They are makes women willing to declare that they TEL 202 458 4632 always bloated in employment. If you pri­ are older than they really are. BANK'S WE@RI.D 12 June 3, 1997 STAFF WEEK BRINGS WARMTH TO ATRIUM THE ATRIUM, subject of con­ Bank," he joked as he pulled the troversy for its cathedral-like lofti­ winning tickets, "but now I have ness and coldness, was filled with learned that there is no such thing warmth and life last month. The as a free lunch." Fred Wright newly planted trees helped in pro­ risked the president's bad luck by viding a splash of welcome color opening the unbrella, but Wolfen­ that positively sparkled when sun­ sohn himself was so delighted light shone through the soaring with his present that he insisted on glass walls. But the real contribu­ having it up again for every pho­ tion came from the hundreds of tograph. The Staff Association did staff who poured in to see what not do badly, signing on about 400 was going on, examine the stalls, new members. pick up the freebies and chat. Outsiders often complain: MDs Q for umbrellas "Where and what is this World It was touching to see Wolfensohn Bank?" Ordinary people can nei­ himself mingling with staff, sitting ther make deposits with it nor get a on the steps to eat his buffet lunch, loan, and when they ask where to fmd its staff they may be directed to any of a dozen buildings, all of enjoying himself chatting to all­ comers. Some of our spies even spotted a couple of managing Big C isn't the only cancer them with austere and forbidding directors taking a breather from By Kevin Rafferty must offer American opportunity." of international club rules. "China exteriors and all displaying a stem their reported 20-hour days to see Hussain adds that recent reve­ was the lowest bidder in a very security face if they dare to peep in. what was going on - though the ANWAR HUSSAIN, Bangla­ lations have shown how wide­ small energy plant. The World Yet Staff Week showed the cynics said they had only come for desh's minister of communica­ spread corruption was. "Look at Bank said 'No', declaring that the strength of the Bank, its people their free umbrellas. tions, warns the World Bank and Korea, whlch benefited from huge project would be delayed because from almost every country under other major donors not to press so sums of money, its system was so the Chinese did not speak Bengali the sun, bringing together all Entrepreneurial Malhotra hard to eradicate corruption that awfully corrupt. After the Cold or English, so we gave it to anoth­ kinds of expertise, listening and One of the delights of the final they let in Corruption by the back War, this dirty linen has started er bidder at a much higher price. learning from each other and from day of the week was to see the door. "Remember, politicians in coming out in public, and now "The 'free world' complains their clients - who are directly utter, flabbergasted astonishment democracies have to fight and win you see massive corruption that Communist countries do not the shareholder governments, but on the face of Mohini Malhotra elections," he adds, noting that if revealed in Italy, Korea, Japan." have any costings, so they decide indirectly virtually all the people when Fred Wright announced that water is completely pure and dis­ The minister complains that the politically which project to take, on this planet. The success of the she was Manager of the Year along tilled, fish cannot survive. rules of the international club of and when they decide they give with Jeffrey Gutman, He declares: "The demand that aid donors sometimes raise the any price. But China is becoming then the tears of joy 'I will not give you this contract cost of projects. He cites the huge capitalist, and we have had to give on the faces of unless you pay me this amount of 4.8 km bridge across the Jamuna concessions to China, which now Malhotra and all her money.' Yes, this kind of corrup­ (Brahmaputra). When Hussain discovers it can no longer complete team who had cho­ tion should be resisted - though I was minister of communications a road at the price it promised." sen her. "I had no should say that many developing in an earlier government, he His latest headache with the idea," she stam­ country leaders beloved of the pushed for the bridge, costed at Jamuna bridge, which will unite mered. She also West prospered this way. With the $500 million. Now he has come the east and west of the country, received a huge end of the Cold War and with the back to the job to find the bridge split by the Ganga-Brahmaputra bunch of roses latter days of Mobutu, the West nearly finished, but the cost has river system, is compensation to @ tagged "Happy Mo- has stopped this patronization. risen to $900 million. people displaced by the work. The James Wolfensohn presented Manager of the Year awards to Jeffrey Gutman ther' s Day" from her "B ut everywhere the party "Why are we all talking about government of Khaleda Zia (I) and Mohini Malhotra (r), and Fred Wright gave the president an umbrella staff, "because they [anxious to win a contract] has to corruption and not getting to the devised what the World Bank con­ atrium-based events suggests that see me as a mother hen," she leave behind some concessions, crux? Why has the cost risen? It siders a model compensation it would be worth considering a laughed. Fi>ttingly, Malhotra, who financial or otherwise. I might is the international club: bureau­ scheme. Hussain has to live with Bankwide "Open Day". Another holds Nepali and US citizenship, is even call it capitalism. For every cracy to bureaucracy, but politi­ the consequences: "I know the idea would be to hold a permanent working at the frontline trying to service rendered, to that some per­ cians get the blame." Chinese area since I pressed for the bridge exhibition in the outer atrium encourage rnicroentrepreneurs, a centage has to be added, or no engineers who were the cheapest and when I went there was not before the security cordon to terribly longwinded word but business contract will be made. for the river-training, the most even a large crow living there in showcase work that the Bank is effectively meaning the poorest of Even if you do not pay the politi­ expensive item, were disqualified some of the areas where people proudest of. the poor and especially wome_ D. cians, the bureaucrats and the by the international consortium say they have been displaced. But For Gutman, it was the second experts will have their price. because they could not work to a now there are large numbers of A picture when it rains award in a month since he was part "The important thing is that the depth of 30 feet. A The Staff Association's own stand of the Thailand land titling team. costs should be built into the price Dutch concern won was the most popular with a con­ Dare the selectors now pass him and not added on afterwards. If the contract at a stant queue of people waiting for over for one of the big jobs in the price of a contract is 100, that much higher price, their umbrellas. Thelma Jones operations? should include the 2 percent that is "but the length of pointed out that "the first day it being paid out. It should not be work actually done rains, it will make a wonderful Make faces for health added on top so that the price to 30 feet is small," colorful picture to see all the Another popular stall was that of becomes 102 or escalates higher he notes. If the Chi­ umbrellas open together." James the Chinese Staff Association, and higher." nese had been Wolfensohn is the only member of which had thoughtfully provided For a poor country like allowed to compete, Bangladesh with 125 million peo­ they would have Bridges bring Bangladesh together the Bank not qualified to join the calligrapher John S.c. Wang and a Staff Association, but he got his free medical check from Jackson ple and a per capita income of won the river-training contract. people who claim they have been umbrella as an honorary member Deng, professor of acupuncture at $250, it is difficult to gain access "So far, the Chinese have built displaced and demand compensa­ and as a reward for agreeing to be the Center of Alternative Medi­ to the international capital mar­ four 'friendship bridges' [so- tion. There is a racket and this is host at a lunch for winners of the cine. It was also fun to watch the kets. Aid is a tricky lifeline. His called because they are built at a real corruption." The minister raffle. "I came here to enjoy the patients putting out their tongues country has to compete with 150 friendship price] and a fifth is says he accepts the need to com­ first free lunch I have had at the for inspection. - BW Reporters other countries for soft-loan under consideration. Our engi- pensate--people whose homes and funds. "Our interests must coin­ neers grumble that if we had built lives have been disrupted, but cide [with the donors']' Nobody is the bridges, it would have cost wants to separate genuine from Even the top executives have to shift offices sitting there to render charity." He one third the price. They complain bogus cases. But he doubts Richard Frank has been shifted to an office hardly larger than that of an compares national attitudes that the Chinese bring more rods, whether Bangladesh could afford ordinary task manager. It's not a punishment for leaving, but part of the toward aid: if the Italians give more cement than they would to be equally generous on every remorseless renovation of the buildings linked to the main complex. grants, they will insist on Italian really need and maybe they will ' infrastructure project. ''You should see Sven Sandstrom's office," says Frank's assistant, ''it's contractors; the British will allow sell some of it in the open market. He takes heart from the Bank's tinier." President James Wolfensohn has also moved, but says cheerful­ ly, ''It's not the size of the office that counts, but what you do in it." free international competition; but These are allegations. But so far commitment to improving infra­ For a time Dorothy Berry was a holdout in the E building in a 3rd the Americans, "Americans will as I am concerned, I am getting structure and its recognition "that floor office that had become a bunker, reached by going to the 10th come and say whomsover pro­ the bridges free." . roads are important as part of com- floor, across, then down through packing cases and rubble. A strip of vides the money, American com­ As energy minister before he munications, bringing the country white plastic hung outside her window, ''not a flag of surrender, but of panies must have a fair chance to took the communications portfo- together and allowing people to peace," said one of her staff. compete. Even British money lio, Hussain got his first sour taste get their goods to market."