WORLD BANK INTERNATIONAL DEVELOPMENT ASSOCIATION Annual Report 1970 A- I i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ i I C £/og~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ L Table of Contents Page President's Letter of Transmittal ........................................ 2 The Record for Ten Years-1961-1970 ........................................ 3 Part One: The Year's Activities .............................................. 5 The Year's Lending: Introduction . .......................................................... 5 Financing Agriculture ............ ...................................... 7 Financing Education ............. ...................................... 13 Financing Public Services ............................................... 16 Financing Industry ..................................................... 21 New Areas of Lending ................................................. 24 Technical Assistance and Other Activities: Technical Assistance ............. ...................................... 26 Economic Development Institute ........................................ 28 Aid Coordination .................................. ................... 29 Pearson Commission Report ............................................ 31 Commodity Study-Implementation of Decisions .......................... 31 Economic Studies ............... ...................................... 31 International Investment Insurance Proposals .............................. 32 International Centre for Settlement of Investment Disputes ..... ............. 32 Borrowings and Finance: W orld Capital Markets ................................................. 32 The Bank's Borrowings ................................................. 35 Increase in Capital: Bank ............................................... 36 Other Financial Operations: Bank ........................................ 36 Income and Expenditure: Bank ... ...................................... 37 Finances: IDA . ........................................................ 37 Organization and Administration: Staff and Department Changes .......................................... 38 Recruitment . .......................................................... 39 Office Facilities . ...................................................... 40 Membership and Executive Directors: Membership . .......................................................... 40 Executive Directors .............. ...................................... 40 Audit Committee ...................................................... 40 Part Two: Trends and Outlook in Development and Development Finance .... ...... 43 Recent Trends in Trade and Growth of the Developing Countries ..... ........... 43 The Flow of External Resources to Developing Countries ...................... 46 External Debt of the Developing Countries .................................. 49 Prospects for Domestic Financing of Economic Development ..... ............. 53 Savings Formation by Fiscal Policy ........................................ 53 Savings M obilization by Financial Institutions .......... ................... 55 Urbanization: Introduction . ......................................................... 57 Urbanization Trends ............. ...................................... 58 Labor Force, Employment and Output Implications ......................... 59 Internal Migration ..................................................... 59 Urbanization and Economic Development ................................. 60 The Urban Economy ............. ................................ ..... 61 The Region . ........................................................... 61 Urbanization Issues for the 1970s ........................................ 62 Financing Urban Growth ............................................... 62 Conclusion . .......................................................... 63 Statistical Annex . ........................................................ 65 Bank Appendices . ......................................................... 83 IDA Appendices . .......................................................... 97 Bank/IDA Appendices .109 International Bank for Reconstruction and Development International Development Association Office of the President September21, 1970 Dear Mr. Chairman: In accordance with Section 10 of the By-Laws of the International Bank for Reconstruction and Development and Section 2 of the By-Laws of the International Develop- ment Association, I have been authorized by the Executive Directors of the Bank and the Association to submit to the Boards of Governors this Annual Report for the fiscal year July 1, 1969 to June 30, 1970. I have also been authorized by the Executive Directors of the Bank and the Association to submit to the Boards of Governors, in accordance with Section 19 of the By-Laws of the Bank and Section 8 of the By-Laws of the Association, the audited financial statements as of June 30, 1970, and the Administrative Budgets for the fiscal year ending June 30, 1971. They are contained in the Appendices of the Report. Sincerely, Robert S. McNamara Chairman Boards of Governors International Bank for Reconstruction and Development and International Development Association 2 The Record for Ten Years-1961-1970 Expressed in millions of United States dollars Fiscal Year 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 . World Bank Loans: Number 27 29 28 37 38 37 46 44 84 70 Loans:Amount $ 61 $ 882. $ 449 $ 810 $ 1,023 $ 839 $ 877 $ 847 $ 1,399 $ 1,680 Disbursements 398 485 620 559 606 668 790 772 762 772 Repayments to Bank 101 104 113 117 137 166 188 237 298 329 Gross Income 167 188 204 219 267 292 331 356 410 504 Net Income 63 70 83 97 137 144 170 169 171 213 Total Reserves 602 699 813 846 895 954 1,023 1,160 1,254 1,329 Borrowings: Gross 787 271 121 100 598 288 729 735 1,224 735 Borrowin,gs: Net 300 104 -5 -32 250 64 503 215 698 299 Subscribed Capital 20,093 20,485 20,730 21,186 21,669 22,426 22,850 22,942 23,036 23,159 i v "i v Member Countries 68 75 85 102 102 103 106 107 110 113 IDA Credits: Number 4 18 17 18 20 12 20 18 38 56 Credits: Amount $ 101 $ 134 $ 260 $ 283 $ 309 $ 284 $ 354 $ 107 $ 385 $ 606 Disbursements - 12 56 124 222 267 342 319 256 143 Subscribed Capital 906 917 969 987 996 999 1,000 1,000 1,013 1,014 Supplementary Resources and Special Contributions - - 6 679 756 763 768 773 1,054 1,950 Member Countries 51 62 76 93 94 96 97 98 102 105 Professional Staff 317 349 406 444 496 615 685 740 917 1,166 3 ,4k, :g iS.,,$tH.S:': .'-T':gS;S',. 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SSE: ': t:f: -it: :t: PART 1: THE YEAR'S ACTIVITIES The World Bank Group again substantially in- only a 3/4% a year service charge) provides the creased both the volume and the range of its Association's member countries which are in the activities in the 1970 fiscal year. Each of the three most difficult circumstances with a supplement or institutions of the Group approved commitments alternative to the Bank's own loans, the interest involving considerably more finance for economic rate on which rose from 61/2 % to 7% during development than in any previous year; the com- fiscal 1970. bined total of commitments in member coun- Negotiations were undertaken during the year tries amounted to $2,297.8 million in the year for a third general replenishment of IDA's re- ended June 30, 1970, representing an increase of sources. These negotiations were successfully con- 22% on the previous year's total (itself a record) cluded soon after the end of the fiscal year. The and of about 100% on the average for the five- Association's 18 Part I (donor) member countries, year period 1964-68. In addition, the Bank lent a together with three Part II member countries and second $100 million to its affiliate, the Interna- one non-member, agreed to a replenishment tional Finance Corporation (IFC-see below). which would provide IDA with new funds of New loans and credits made in fiscal 1970 by rather more than $800 million a year for three the Bank itself and its affiliate, the International years, beginning late in 1971. Agreements were Development Association (IDA), totaled $2,186 also reached dealing with member countries' vot- million, excluding the Bank's loan to IFC. Com- ing rights. Further details relating to these agree- mitments for agricultural development and infra- ments are given on page 38 of this Report. structure projects rose particularly rapidly during The third member of the Bank Group, the Inter- the year; in geographical terms, lending to devel- national Finance Corporation (IFC), which helps oping countries in the Western Hemisphere and to finance productive private enterprise ventures in Africa showed a marked expansion. Bank loans in the developing world, made investments total- made up $1,580.4 million of the two institutions' ing $111.8 million in 1970. The Corporation's ac- lending total for economic development purposes tivities have grown sharply over the past two years; in member countries; the remaining $605.6 mil- to ensure that IFC should have adequate resources lion was made available in the form of IDA for further expansion, the Bank made available to credits. IDA finance (which bears no interest and IFC a loan of $200 million during the year, which incorporated and replaced a $100 million loan which was made in 1966. IFC's financing activities Venezuela-Water Supply. Checking air valves on the during fiscal 1970 are summarized on page 24 of Tuy No. 2 pipeline, which carries water to Caracas, a this Report; details of the Corporation's work are short distance from the Lagartijo Reservoir. To help available in its own Annual Report. double the water supply to the Caracas Metropolitan Zone, with a population of nearly two million, in 1966 The further growth of Bank Group assistance to the World Bank made a loan to Venezuela of its developing member countries in the year ended $21.3 million. June 30, 1970, took place against the background 5 IDA FINANCING 1961-1970-SOME EXAMPLES IDA made its first development credits in fiscal 1961. During the past ten years IDA has made 221 commitments, totaling $2,773.1 million net in 55 countries, for agriculture, education, transportation, electric power, water supply, telecommunications, industry, and project preparation and technical assistance. Among other things, IDA credits made as of the end of fiscal year 1970-alone or with supplementary finance from the World Bank or other lenders, and together with the contribution of the borrowing country-are helping to finance projects for: -Bringing under cultivation or improving more than 22,004,750 acres for agricultural purposes, including: through irrigation-6,127,000 acres in the Republic of China, India, Pakistan', Ceylon, the Sudan and Turkey; through flood protection and drainage- 12,672,000 acres in India, Pakistan, the United Arab Republic and Indonesia; through land development (mechanization, cooperatives, plantations)-1,797,840 acres in Africa and Asia. -Construction or improvement of more than 15,030 miles of roads in Asia, Africa, Latin America and the Middle East; the engineering of more than 3,709 miles of roads; and the improvement of road maintenance operations in many of the countries involved. -Improvement and expansion of railroads in four countries by the provision of more than 5,440 freight cars, 250 passenger cars, track signaling devices, electrification and workshop equipment, as well as components for the domestic construction of hundreds of locomotives, thousands of freight and passenger cars. -Port improvements in six countries by construction of ship berths and passenger and cargo building and by provision of new dredges, harbor craft, navigation aids and other equipment. -Installation of about 919,000 kilowatts of electric generating capacity and the extension of transmission lines in seven countries. -Improvement and expansion of water supply systems in 16 cities with a total population of over 6,000,000 located in six countries. -Construction, expansion and/or equipping of 627 general secondary and specialized train- ing schools, 52 teacher-training colleges, and eight agricultural universities. These projects, in eleven African, three Asian and two South American countries, will enable enrollment to expand by 148,900 in general secondary schools; 31,100 in technical and agricultural train- ing schools; 7,700 in teacher training colleges; 6,200 in agricultural universities. 'in addition, IDA is a contributor to the $1.2 billion Indus Basin Development Fund, which is financing projects to irrigate about 5,000,000 acres in West Pakistan. of a number of studies of the development effort of its own work in the field of economic develop- as a whole, sponsored both by individual govern- ment; it has taken active steps during the year ments and by multilateral agencies. The Bank itself under review to do so, in the light of its own ex- sponsored one such study ("The Pearson Report" perience and the general appraisals undertaken -see below, page 31). The consensus of these by others. reappraisals was that notable successes had al- The development picture was marked by a num- ready been achieved; at the same time, a further ber of encouraging advances during the year. The intensification and coordination of effort, on the economic growth of the developing world as a part of international institutions and individual de- whole continued, with an increase of 6.7% in the veloped and developing countries alike, would be combined gross domestic product of the devel- required in the years to come. The challenges oping countries in 1969. During that year these facing the developing world are becoming clearer; countries' exports rose by 9%, assisted by the consequently it is becoming possible to frame and continuing rapid growth of world trade as a whole, execute new, more comprehensive strategies to and high prices for a number of basic commodi- meet them. The Bank Group is deeply conscious ties. The creation or improvement of countries' of the need to enhance the quality and quantity infrastructure, essential for future development as 6 well as for current needs, continued. Several coun- The Year's Lending tries achieved significant increases in agricultural production, and a number also made substantial Financing Agriculture advances in industrialization. The continuation during 1969 of flows of external funds into the de- Bank and IDA lending for agricultural develop- veloping countries has helped to provide them ment rose sharply to a new record level in fiscal with useful new sources of employment and in- 1970: 32 loans and credits, with a combined value come for their citizens. The developing countries of $412.9 million, were made during the year are becoming increasingly able to use new capital, for agricultural development projects. In addi- public and private, productively as their mana- tion, two IDA credits, totaling $3.2 million, were gerial and organizational capacity increases, and made for project preparation in this sector (see as infrastructure projects initiated in earlier years below pages 26 and 27). come to fruition. The cumulative total of funds committed for Thus the judgment of the Pearson Commis- agriculture by the two institutions amounted to sion and others that the development effort has nearly $2,000 million as of June 30, 1970. About achieved real gains and, given the right policies, 400% of this total-some $780 million-has been can continue to do so on an increasing scale, was lent in the last two years. This rapid expansion of corroborated in the year under review. At the lending reflects not only the special emphasis same time, the need for intensified effort on the which the Bank has decided should be placed on part of both providers and recipients of develop- this sector, but also the recent emergence of en- ment assistance was underlined by the persistence couraging new opportunities for the productive of a number of fundamental constraints which still use of agricultural finance. The development of hold back economic growth in the developing new high-yielding foodgrain varieties, the estab- world, and which have not diminished signifi- lishment or expansion of effective institutions for cantly during the year under review. Although channeling investment credit to individual farm- manufacturing is assuming increasing importance ers, and the successes achieved in programs for in a number of the Bank's member countries, the the profitable expansion of livestock production majority are still dependent on exports of primary are among the factors which have made notable products. At the same time, problems of access increases in agricultural investment feasible. to markets in the developed countries (which are The geographical distribution of Bank and IDA becoming increasingly important as outlets for the agricultural lending continued to broaden in fiscal exports of the developing countries taken as a 1970. Loans or credits were made to seven coun- group) continue. These countries' needs for new tries which had not previously received agricul- high-priority development projects and for better tural loans or credits from the Group-Afghanistan, employment and income opportunities for their Ethiopia (2), Ghana, Honduras, Niger, Spain and citizens remain pressing; such needs are increased the United Arab Republic. By the end of the year in many countries by high rates of population the Group had over -120 on-going agricultural growth which put additional strains on already projects under supervision. scarce resources. Further improvements in the mo- The largest proportion of Bank and IDA lending bilization of domestic resources and in the volume for agriculture during the year under review was and terms of the flows of external assistance to provided for irrigation projects. Adequate water meet these needs are urgently required. The debt supplies are essential for the expansion of agricul- service problem, already serious for several coun- tural output, but less than 15% of arable land in tries, is likely to become more difficult for a num- the developing world is currently irrigated. The ber of them; analysis of the structure of existing scope for productive investment for this purpose debt provides some disturbing implications for remains very great. the future. The loans and credits which made up the record It is against this background, of much solid $207.7 million provided by the Bank and IDA for achievement but of a number of continuing prob- this purpose ranged in value from a $46 million lems, that the World Bank has consolidated and Bank loan to Morocco for the integrated develop- expanded its contribution to the world economic menit of irrigation and dry farming in the Sebou development effort during the year under review. Basin to a $2.5 million IDA credit for drainage and The Bank expects its activities to increase still flood control in Ceylon. A $26 million IDA credit further during the years to come, in coopera- to the United Arab Republic for the drainage of tion with its developing member countries, and nearly a million acres of land in the Nile Delta will with the development assistance efforts of indi- benefit some 250,000 farming families and will vidual developed countries and other interna- form part of the largest tile drainage system in the tional organizations. world. A second lending operation in Ceylon, a 7 Bank Loans andl IDA Credits 1969/7 by Area Expressedin millions of US dollars Bask Loans 'IDA Credits Total Number Amount ~Number Amount Number Amou nt Botswana.$ - I~ ~~~~~~~~~~~~ $ 2.50 1 $ .5 Burundi.- ~......- 1 0.38 1 0.38 Cameroon.....2 I7.20 2 17.50 4 34.70 Central African Republic . - -. 1 ~ ~~~~ ~ 4.30 1 4.30 Congo, Democratic Rep. of . - - 1 ~~~~~ ~ ~~5. co 1 5.00 Congo, People's Republic of - 1 ~ ~~~~ 1.50 1 1.50 N~ ~ tioi. - N66 2 66 4 ....Kenya.2 26.10 1 61 22 Keny, Tazani, and Ugna3 8V.0A 3 87.80 Liberia.1 7.40......-M1 7.40 MaaayRpblic.t.- 1 .6 9.60 Malawi.-- 1 .2 5.25 Mali.- - 1 ~ ~~~~~ ~ ~ ~~~~ 7.7A 7.70 Morocco.3 ~~~~~ ~~ ~ ~~~~~68.0 130 0 47.60 Niger..- 1 ~~~~~ ~ ~ ~~~~~~~~~~~0.58 10.58 Nigeria.2 ~~~~~~~~~ ~~~35.60 - 35.60 Rwanda.- - 1 9.30 1 ~~~~~~~~~~~~~~~~~~9.30 Senegal..- ~ ~ ~~~~ ~ ~ ~ ~~~~~~~1 2.10 1 ~ 2.1 Tanzania.- 1 7.0 17.5 Tunisia.1 10.00~~~~~~~~O 1 1050 2205 Afghanistan - .. $ 5.0 1 $ 5.0 Ceylon.~~ ~~~~~~~~3 43.50 2 17.00 5 60.50 ( China.~~ ~~~~~~~~ ~~3 71.50 - - 3, 71.50 India.1 ~~~~~ ~~ ~~~~~~40.0 5 227.50 6 26.0 Indonesia.- - ~ ~ ~~~~~ ~ ~ ~ ~~~4 80.50 4 8050~ han.2 48.50 -.-. -. ~~z~2 48.50 Israel.1 ~~~~~~~~~ ~ ~~251.00 2-. 1250 Korea.1 40.00 1 15.00 2~~~~~~~~~~~WO 55.00 Malaysia.2 21.50 - -.-.~ ~ ~ 2 21.50 Nepal.- - ~ ~ ~~~~ ~ ~ ~ ~~~~~~~1 1.70 1I.7 Pakistan.1 19.20 9 77.20~~~~~u 10 96.40 Papua and New Guinea.1 ~~~~4.50 12 ~ 9.50 "3 14.A Philippines.2 59.00 - - ~22 59.00 Singapore.2 1~~~~~~~~~~~~6.00 -. 2 16.0 Thailand.1 4~~~~~~~ ~~~~6.50 --146.50 Europe ~~~~~~~~~20l $ 435. 20 25 $3.0 4 868.60 Greece.1 ~~~~~~~~ ~~~20.00 -.F- 1 00 Latin America & Caribbean 7 $ 160.50 77 7 M$16.5 Argentina.1 $ 60.00 - $ .- 1~~~~~~~~~ $ ~60.00 Bolivia.1 ~~~~~ ~~ ~ ~~~23.25! 1 1.40 2: 24.65~ Brazil.3 2~~~~~~~~ ~~~05. 00 . 3 205.'00 NJ Chile.3 ~~~~~~~~~~~~19.30 --319.30 Colombia.~~ ~~~~~~~5 17.160 --- 5 127.60 Costa Rica.3 ~~~~~~~~34.20 -.3 34.20 Dominica Republic~.1 50 -1 25.00 Ecuador.- .- 1 1.50 1 ~~~~~~~~~~~~~~~~~~1.50 Honduras.1 ~~~~~ ~ ~ ~~~~~5.5 2 8.0 13,60 Mexico.~~ ~~~~~~~~2 146.80 -- 2 168 Panama.1 42.00 - ...- 1 b 42.0 24 $ 702.95 ~4 $1.0 28 $ 7113.5 Intrnaionl Fnane Crporation $10.0 - $ 1 $0.0 TOTALS.~~~ ~~~70 $,8.5 56 $4605.61 12 $,25.6 8~~~~~~~~~~~~77 joint Bank/IDA commitment of S29 million, is de-- above subsistence levels. At the same time, atten- signed to help finance a multipurpose project for tion must be paid to the provision of technical irrigation and electric power generation; the irri- advice to farmers receiving credit. gation component of the project should substan- The five Bank/IDA commitments made to insti- tially raise the output of some 10,000 farmers. tutions providing credit for crop development in- Loans and credits were also made for irrigation to cluded the Group's first measures of assistance India, Indonesia, Pakistan (2) and the Philippines. to agriculture in Afghanistan and ,Niger, and its Sustained increases in agricultural production first agricultural credit projects in /ndia (where generally require extensive investment by individ- two such projects were approved during the year) ual farmers in on-farm improvements and new and Iran. inputs. Most farmers in the Bank's developing Projects in the field of agricultural develop- member countries, lacking the resources for such ment, as in other sectors, must take account of investment, must depend instead on the availabil- the need for increases in domestic cash incomes, ity of investment credit to finance improvements. and foreign exchange earnings from exports (bear- The Bank and IDA attach great importance to the ing in mind current world market conditions, in- development of such credit facilities, and have cluding questions of access to markets in the undertaken eleven lending operations for this pur- developed countries and the impact of new pro- pose during the fiscal year, with a total value of ductive capacity on market prices). They must also S129.7 million. $74.6 million of the total was take into account ways of utilizing unused or provided for general crop development credit underused resources in developingcountries. Bank projects and $55.1 million helped to finance spe- and IDA lending for projects to provide credit for cialized livestock credit. livestock development, which is mainly designed The provision of finance for investment credit to raise countries' export earnings, can also pro- has a number of special advantages. It is inherently vide benefits through improvements in the nutri- selective in favor of the most innovative and effi- tional content of local diets. Livestock projects cient farmer; at the same time it provides his col- essentially provide credit to ranchers for farm im- leagues with a valuable demonstration of the provements, better stock and technical services. results which can be obtained through investment The Bank and IDA will often assist borrowers in in on-farm improvements and new types of input. Moreover, the fact that the borrowing farmer is Loans and Credits: AGRICULTURE expected to pay back his loan out of higher pro- (Million US dollars) duction encourages him to use the resources at ; . - - his disposal efficiently. ' The Bank and IDA, when lending to credit insti- ' s- , 7; tutions, take great care to ensure that the insti- a, tutions themselves will be properly managed; in . particular, the Group satisfies itself that proper technical evaluation procedures are observed, and _ .,. that the institutions' terms and conditions of lend- ing are realistic. It will help institutions to improve their performance in these and other respects x' where necessary. * The availability of agricultural credit for crop development is assuming increasing importance with the technological advances of the "Green Revolution." As a consequence of the new tech- nology, farmers who were previously barely able i< to produce enough to live can now achieve sharp AlJ increases in production; these formerly marginal farmers are therefore able for the first time to take advantage of the facilities for investment in on- - farm improvements offered by credit institutions. The Bank Group believes that soundly based, well regulated credit institutions can have a catalytic A ' ' . effect on farming methods in whole regions w,here 1964-68 969 .1970 all but the richest farmers would otherwise be kverage unable to take advantage of recent advances in . agricultural technology to raise their production 9 -Bank Loans and IDA Credits 1969/70 by Purpose Expressed in millions of US dollars Bank IDA Total Agriculture Afghanistan-Agricultural credit.......... .......... $ 5.00 $ 5.00 ~Bolivia-Livestock ...... .I..~I.................1.40 1.40 Ceylon-I rrigation and drainage.................... 13.60 5.10 18.70 Ceylon-Drainage,.... ... ..... ....- 2.50 2.50 Colombia-Livestock.................... 18.30 - 18.30 Ecuador-Livestock....- 1.50 1.50 Ethiopia-General agricultural development....... .- 3.10 3.10 Ethiopia-General agricultural development- .. ....3.50 3.50 Ghana-Fisheries......... .........1.30 1.30 Ghana-Cocoa prodiuction......_-......-.........8.50 8.50 onduras-Livestock;..............-......o.- 2.60 2.60 India-Irrigation, . .......-..... I.....35.00 35.00 ~~~ I~~ndia-Agricultural credit..-.........I....35.00 35.00 India-Agricultural credit..... .-........27.50 27.50 Indonesia-Agricultural estates..I...... .........17.00 17.00 Indonesia-irrigation,... ..... - 18.50 18.50 Iran-Agricultural credit ................. 6.50 - 6.50 Ivolry Coast-Cocoa producti'on. ................... 7.50 - 7.50 Kenya-Forestry..........._..... 6.... .... 2.60 - 2.60 Malaysia-Land settlement and development....... . I..... 13.00 - 13.00 Malaysia-Forestry ......... ..8.50 - 8.50 Morocco-Irrigation .. -- ................. 46.00 - 46.00 Niger-Agricultural credit. .......... -....... - 0.58 0.58 Pakistan-Irriation .................13.00 13.00 Pakistan -Irrigation... ... 14.00 14.00 Papua and New Guinea-Oil palm, coconuts and cattle ........ . 5.00 5.00 Philippines-irrigation.. ,.....-..... ........ 34.00- 34.00 Spain-Livestock.. . ..................... 25.00 - 25.00 United Arab Republic-Drai'nage .....I...........- 26.00 26.00 Uruguay-Livestock. . . -................... 6.30 - 6.30 Zambia-Comnmercial farming ...I............1 .... 5.50 -5.50 Education ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ $186.80 $226.08 $412.88 CaImeroon...... .....$10.50...10.50 Chile. ..... .... .... 1.50 -15 Chile... . . . . . . .. . . . . . . . . . . . . . . . . 7.00 -7.00 China . . . .. . . . . . .I . . . . . . . . . . . . 9.00 -9.00 Colombia ~~~~~~~~~.. . . . .... ...... ... 6.50 -6.50 Ivory Coast......... ..... 11.00 - 11.00 Kenoya .. . . . . . . . . . - .. . . . . . . . . . . . 6.10 6.10 Pakis ..-.. . . . .. . . . . . . .. . . . . . . .8.00 8.00 Sierra Leone .. . . . . . . . . . . .. . . . . . . . . . . . 3.00 3.00 Spyain~ ~..~,~. ~ .. ... .... .. ...... . I. 12.00 - 12.00 Zambia .... . . . . . . . . . . . . . . . . . . . . . ..5.30 -5.30 $ 52.30 $ 27.60 $ 79.90 Telecmmunications Costa Rica ......... ... .... ...... .. $ 6.50 $ - $ 6.50 Kenya, Tanzania and Uganda .. ............... 10.40 - 10.40 Nepal. I-.. . . . . .. . . . . . I .. . . . . .1.70 1.70 Pakistan .. . . . . . . .. . . . . . . . . . . . . . . . .- 15.00 15.00 Singapore~ .. ....I......... 11.00 - 11.00 Yugoslavia ...... .... ...... .. 40.00 -40.00 $ 67.90 $16.70 $ 84.60 Transportation Bolivia-Natural gas pipeline, .... . ........$ 23.25 $ - $ 23.25 Brazil-Roads . ; ...................... 100.00 - 100.00 Cameroon-Roads.. ~.~... -..1 -..........O... 12.00 7.00 19.00 Cameroon-Railways ..... -......... ....... 5.20 - 5.20 Central African Republic-Roads................- 4.30 4.30 Chile-Roads........... 10.80 - 10.80 Colombia-Roads...32.00 - 32.00 Congo, People's Republic of-Roads. ....... ......I..........- 1.50 1.50 Costa Rica-Roads. ~ .~......-1.........- ... 15.70 15.70 Gambia, The-Port....;. . ...................- 2.10 2.10 I ndia-Railways. . ............... ......I .- 55.00 55.00 Iran-Roads ............. ...... ..... 42.00 - 42.00 Kenya-Roads,.......................... 23.50 - 23.50 Kenya, Tanzania and Uganda-Ports. . ~............... 35.00 - 35.00 Kenya, Tanzania and Uganda-Railways........ ........ 42.40 - 42.40 Korea-Railways............ ....-.....~W.. 40.00 15.00 55.00 Malagasy Republic-Port. .......I.........- 9.60 9.60 (continued) 10 Bank Loans and IDA Credits 1969/70 by Purpose (continued) Expressed in millions of US dollars Bank IDA Total Mali-Roads ................... . $ - $ 7.70 $ 7.70 Mexico-Roads . . ................. 21.80 - 21.80 Morocco-Roads . . .............. 7.30 7.30 14.60 Nigeria-Roads . . .10.60 - 10.60 Nigeria-Roads, railways and ports . . .25.00 - 25.00 Pakistan-Natural gas pipeline . . .19.20 - 19.20 Papua and New Guinea-Roads . ............. ...... ...... 4.50 4.50 9.00 Paraguay-Roads . . .............. 6.00 - 6.00 Rwanda-Roads . . ............................................ - 9.30 9.30 Senegal-Roads . . ............................................- 2.10 2.10 Tanzania-Roads .................. ............................- 7.50 7.50 Uganda-Roads . . . - 11.60 11.60 Yugoslavia-Roads . . .40.00 - 40.00 $ 516.25 $144.50 $ 660.75 Electric Power Argentina ..$ 60.00 $ - $ 60.00 Brazil . . .80.00 - 80.00 Ceylon ................................................0.90 9.40 10.30 Ceylon ... ........................ ................. .... 21.00 - 21.00 China. . .44.50 44.50 Colombia.. ..... .. ................ ................... ... 52,30 - 52.30 Costa Rica . . .12.00 - 12.00 Cyprus . . . 5.00 - 5.00 Honduras .. . . 5.50 5.50 11.00 Indonesia ..... - 15.00 15.00 Liberia ..... . . .................................................. 7.40 - 7.40 Malawi ............. . ......................... .......- 5.25 5.25 Mexico . ... 125.00 - 125.00 Panama ....42.00 - 42.00 Thailand ..46.50 - 46.50 $ 502.10 $35.15 $ 537.25 Industry Brazil-Development finance company .$ 25.00 $ - $ 25.00 Ceylon-Development finance company . .8.00 - 8.00 China-Development finance company . .18.00 ..-.. 18.00 Congo, Democratic Republic of-Development finance company - 5.00 5.00 Dominican Republic-Facilities for nickel mining project .............. 25.00 - 25.00 Greece-Development finance company . . 20.00 - 20.00 India-Development finance company ............... ............... .00 - 40.00 Indonesia-Fertilizer plant................................-....... . 30.00 30.00 Israel-Development finance company . .25.00 - 25.00 Morocco-Development finance company . ............... 15.00 15.00 Pakistan-Development finance company ........ . ......' 20.00 Pakistan-Small industries ................. . - 3.00 3.00 Philippines-Development finance company ... 25.00 - 25.00 Singapore-Development finance company 5.00 - 5.00 Tunisia-Development finance company, 10.00 - 10.00 Yugoslavia-Automotive and steel industries . . , 18.50 - 18.50 $ 234.50 $ 58.00 $ 292.50 Project Preparation Botswana-Infrastructure for mining project .$ - $ 2.50 $ 2.50 Burundi-Road engineering and maintenance study .... - 0.38 0.38 Ghana-Road engineering .. ... - 1.50 1.50 Pakistan-Agricultural engineering .- 0.80 0.80 Pakistan-Agricultural engineering ..., - 2.40 2.40 Pakistan-Port engineering . .......................... ...,.,.,.- 1.00 1.00 $ - $ 8.58 $ 8.58 Water Supply & Sewerage Systems Colombia-Water supply . .$ 18.50 $ - $ 18.50 Ghana-Water supply and sewer system - .. . . - 3.50 3.50 Tunisia-Water supply ................. . .................- ....... 10.50 10.50 $ 18.50 $14.00 $ 32.50 Family Planning Jamaica .$ 2.00 $ - $ 2.00 General Development & Industrial Imports India-Industrial imports$ - .................. ..................... $ . $ 75.00 $ 75.00 International Finance Corporation .$ 100.00 $ - $ 100.00 TOTALS $1,680.35 $605.61 $2,285.96 11 setting up the institutional framework needed to ment. Apart from its lending for irrigation and ensure successful management and administration credit, the Bank directly assists cash crop produc- of the project. tion through its selective lending for productive As noted above (page 9), Bank and IDA lend- general agricultural development projects. Proj- ing for livestock projects totaled $55.1 million in ects of this kind, designed to stimulate output of fiscal 1970. Of the six projects assisted, four, in existing cash crops or to diversify production into Bolivia, Colombia, Ecuador and Uruguay, repre- new crops with export or domestic sales potential, sented continuations of existing livestock develop- often involve relatively small loan amounts and ment programs; the Bank's $25 million loan to may require particularly lengthy preparatory work, Spain and the $2.6 million IDA credit to Honduras but they can have a quite disproportionately large were the Group's first measures of agricultural impact on the agricultural economy of the country financing in these two countries. concerned. This is especially true where, as in the The development of a market-oriented agricul- majority of Bank or IDA operations, the project ture producing cash crops for domestic and export concerned is designed to assist smallholders to sales is central to successful agricultural develop- increase their output and earnings. In preparing June 30, 1968- (2t;0 prjet toaln $11 :tf:::fiscal years up to June 30, 1970- 12 such projects, the key problem is how to graft the tion for purposes including vegetable processing production of a new crop, or intensive production and marketing facilities, grain storage, aerial crop of an existing one, on to often complex existing spraying and fisheries. agricultural institutions or methods of work. The Specific agricultural projects should not be con- project must take into account the national or re- sidered in isolation, but rather in the context of gional agricultural policy frame within which it countries' overall agricultural prospects and prob- will have to operate; measures of institutional re- lems. To facilitate the development of an inte- form, or changes in credit, marketing, price or grated sector-wide agricultural strategy, the Bank fiscal policies may be required. has begun to undertake comprehensive sector It is precisely because projects for cash crop studies in a number of member countries, and ex- development involve consideration of these diffi- pects to continue and extend such studies in the tult topics, and may entail reshaping of patterns of coming years. agrarian life in the direction of a market-oriented Project identification and preparation remained agriculture, that the Bank considers them to be an important activity during the year. The Bank's worth the amount of time they take to prepare. permanent missions in Eastern and Western Africa, Agriculture remains the dominant sector of activ- stationed in Nairobi and Abidjan, continued to ity in most of the Bank's developing member assist governments in the preparation of projects countries, often providing a living for two-thirds in Africa, while the Bank's Agricultural Develop- or more of the population. The achievement of ment Service, with headquarters in Nairobi, again significant overall economic growth depends di- provided African countries with management as- rectly, therefore, in many countries on the trans- sistance for projects where necessary. The Bank's formation of agriculture from a subsistence activity cooperative arrangement with the Food and Agri- to an income-earning one through well conceived, culture Organization of the United Nations (FAO) economically sound development projects, having continued to operate satisfactorily during the year. due regard to market possibilities. FAO sent 76 missions to developing countries for Bank and IDA lending for general agricultural this purpose, and FAO staff members participated development totaled $74.2 million in fiscal 1970. in 36 of the Bank's agricultural missions during The ten loans and credits provided include two the year. IDA credits to Ethiopia totaling $6.6 million to help raise production of a variety of cash crops Financing Education for domestic and foreign consumption; an $8.5 The Bank Group began lending for education million credit to Ghana and a $7.5 million loan in 1962. By the end of the 1970 fiscal year, the to the Ivory Coast for expansion of those coun- cumulative total of Bank and IDA education lend- tries' cocoa industries; a $17 million credit to ing amounted to over $320 million. About half Indonesia for the second stage of a program to this total has been committed during the last two rehabilitate rubber estates; a $2.6 million Bank fiscal years. Eleven commitments totaling $79.9 loan to Kenya for forestry development (whose million were made during the year under review output will be used in a pulp mill which is being to ten countries, five of which-Cameroon, the assisted by an IFC investment); two loans to Ma- Republic of China, the Ivory Coast, Sierra Leone laysia totaling $21.5 million for forestry and for and Spain-received loans or credits for educa- the second stage of a settlement and crop de- tion for the first time. The five other countries velopment project in the Jengka Triangle; an IDA assisted-Chile (2), Colombia, Kenya, Pakistan and credit of $5 million to Papua and New Guinea for Zambia-had received earlier education loans or coconut, oil palm and livestock development; and credits from the Bank or IDA. a $5.5 million Bank loan to Zambia for commer- The need for improved educational facilities of cial farming. Six of the ten projects are in Africa; all kinds throughout the developing world is very ltans and credits for the development of cash great, and the Bank Group recognizes that its as- crops form a large proportion of Bank and IDA sistance can fulfill only a small part of countries' agricultural lending in Africa, which has increased overall requirements in this sector. But the short- particularly rapidly during the last two years (see age of indigenous trained manpower is one of the map, page 12). major impediments to economic growth in many The Bank Group continues to take a special in- developing countries; the Bank believes that im- terest in the possibility of financing projects in the proved educational facilities, based on careful field of agro-industries and activities such as fish- planning of education systems to make them rele- eries. Although only one commitment was made vant to students' subsequent employment oppor- in this field during the year under review-a $1.3 tunities and countries' needs for skills, are among million IDA credit for Ghana's fishing industry-a the soundest forms of investment to be made in number of projects are currently under examina- the developing world. 13 The Bank and IDA try to sharpen the impact of loans or credits, therefore, support simultaneous their education lending by concentrating their as- improvements at a number of levels, and involve sistance on those parts of the education process not only a variety of quantitative increases in facil- which are most closely connected with countries' ities but also qualitative improvements in the over- economic progress, and by promoting structural all structure and content of the system. The Bank reforms of education systems aimed at making and IDA also finance assistance in educational them more efficient and more relevant to coun- planning and curriculum development, and help tries' needs. The structure of education systems in governments to set up units for this purpose where many of the Bank's member countries often re- necessary. mains more appropriate to a developed than a The $11 million Bank loan to the Ivory Coast is developing economy. A system which diverts a of particular interest, in that it includes support disproportionate amount of resources to univer- for educational television facilities on an experi- sity education at the expense of adequate lower- mental basis. In close cooperation with the United level schooling may be a luxury which some coun- Nations Development Programme (UNDP), the tries simply cannot afford, while a curriculum United Nations Educational, Scientific and Cul- which emphasizes traditional academic studies at tural Organization (Unesco), the United Nations the expense of technical and vocational education Children's Fund (UNICEF) and the Fonds d'aide is liable to produce school leavers whose qualifi- et de cooperation (FAC), the Bank is helping to cations do not match countries' urgent needs for finance the construction of an educational tele- trained managers, technicians and agriculturists. vision center which will produce primary edu- Bank and IDA educational loans and credits are cation programs for use throughout the country, made only after detailed examination of the edu- together with the construction and equipment cational system of the country concerned, in which of three primary teacher training schools, three the relevance of the system to the country's exist- general secondary schools, two secondary tech- ing and projected manpower needs is carefully nical schools, two post-secondary technical analyzed. The Croup believes its lending should schools and one adult vocational training school. assist the coordinated development of a country's The project will also provide the Government with education system as a whole; most individual funds for studies of curriculum reform and cost- reduction techniques in secondary education, for the employment of consultants on school building Loans and Credits: EDUCATION design and construction supervision, and for the (Million US dollars) establishment of a coordination and supervision unit in the Ministry of Education. The project is designed to help the Government achieve the ob- jective of doubling the number of trained teachers in the Ivory Coast to 14,000 and raising the num- _t, 44 ber of children attending primary schools from about 400,000 to 600,000 in 1974-75. The Group made three commitments to assist university education programs relevant to eco- nomic development during the year-an $8 mil- lion IDA credit to Pakistan for the West Pakistan University of Engineering and Technology at La- hore and the Government Engineering College at Karachi; a $6.1 million IDA credit to Kenya, which, apart from supporting agricultural education at I l } the secondary level and primary and secondary' teacher training, will assist the establishment of Kenya's first University Faculty of Agriculture; and _ 4 a $5.3 million Bank loan to Zambia for expansion : SY : of the Faculties of Engineering and Education at Ei J gIthe University of Zambia. This project will enable the University (whose enrollment is expected to treble bv 1973) to provide newv lecture rooms, lab- 1964-66 1969 1970 i 9 ~~~oratorie's and other facilities for the twso faculties. 1964-68 1969 1970 _ Average The project will also provide funds for the con- struction and furnishing of hostels for 960 students and staff. 14 Loans and Credits: AFJCA (Million US dollars) 1964-68 1969 1970 ^ll_ The majority of the year's Bank loans and IDA Government of Cameroon to construct or expand credits have again been designed to assist the de- and equip four teacher training colleges, 15 gen- velopment of three areas of education which the eral secondary schools, a post-secondary school of Group considers to be of special importance- agriculture and two technical schools, and to re- secondary schooling, technical and vocational equip two other technical schools. The 24 schools education and teacher training. A $7 million Bank covered by the project will have a combined en- loan to Chile will help finance the construction or rollment of over 7,000 students, adding a total of expansion of eleven teacher training institutes, 5,500 places to the existing system. The project raising trainee enrollment from 3,000 to over 5,300 also involves measures of curriculum reform de- and the construction or expansion of eleven agri- signed to strengthen the teaching of technical and cultural secondary schools, providing over 3,200 agricultural studies, and agricultural and workshop new school places. A second loan to Chile, for training. Other projects approved during the year $1.5 million, will provide funds for the further ex- included a $9 rnillion Bank loan to the Republic pansion of Chile's industrial and agricultural voca- of China for industrial and vocational schools, and tional training program (a previous loan had been for feasibility studies of educational television and rnade for an earlier expansion of the program in fisheries education; a $6.5 million Bank loan to 1965). A $3 million IDA credit to Sierra Leone will Colombia for comprehensive secondary schools; help the Government to diversify the curricula of and a $12 million Bank loan to Spain for basic eleven secondary schools to include the teaching general education and teacher training centers. of agricultural, commercial, scientific and indus- As shown in its Ivory Coast loan, the Bank is trial subjects, to expand the combined enrollment prepared to experiment wvith new technology in at two technical institutes and two trade schools the field of education, particularly when the bene- from 740 to nearly 2,000 full-time students, and to fits obtained from modern equipment can be double the capacity of the Freetown Primary shown to outweigh their costs. The Group is in- Teachers' Training College. The Canadian Interna- terested in the development of new teaching tional DevelopmentAgency (CIDA) and the UNDP aids such as instructional television, programmed are joining with the Bank and the Government of learning, and audio-visual devices; it is ready to Sierra Leone in providing funds for equipment and consider their use wherever they can be shown technical assistance activities connected with this to provide an economic solution in a specific project. A $10.5 million IDA credit will help the project situation. 15 The Bank's cooperative arrangements with facilities form a necessary prerequisite for the suc- Unesco and FAO continued to be of value in Bank/ cess of policies to promote agricultural and indus- IDA education financing activities during the year. trial growth; the planned further expansion of Eight of the projects approved in fiscal 1970 had infrastructure, in line with countries' abilities to been identified or prepared with the help of use it productively, remains essential if their over- Unesco; Unesco staff members also participated all developmental goals are to be met. The Bank in eleven Bank missions during the year for pre- Group is aware, however, that infrastructure proj- liminary identification of education projects,while ects in the developing as well as the developed FAO participated in eight Bank missions con- world may have disturbing effects on the environ- cerned with appraisal or preparation of agricul- ment. It is increasing its efforts to ensure that the tural education projects. An understanding was ecological effects of the projects it supports are reached during the year, subject to the approval taken properly into account when projects' po-- of the Board of Governors, that the agreement tential costs and benefits are appraised. with Unesco, on which the two organizations' co- During the year under review, Bank and IDA operative activities are based, would be expanded lending for public services reached a total of to include the services of personnel in divisions $1,315.1 million, a notable increase on 1969's pre- other than Unesco's Educational Finance Division. vious record total. The cumulative total of Bank This will make it possible for the Bank to draw and IDA lending for public services now stands at more heavily on Unesco's expertise in specialized over $10,000 million and represents about 60% of fields, and will broaden the institutions' joint ac- all loans and credits made by the two institutions tivities to cover the preparation of educational to date. sector studies in member countries. In this as in other sectors, the Bank and IDA recognize that technical assistance and support for Financing Public Services institution building may often be needed at least The provision of finance for projects to improve as urgently as physical infrastructure. Many of the countries' public service infrastructure-transpor- year's loans or credits for public services con- tation networks, electricity supply, telecommuni- tained allocations of funds for technical assistance cations, sewerage and water supply systems-has (see below, page 27): in addition, four of the six traditionally been the largest single area of Bank IDA credits made during the year solely for tech- Group lending activity. Adequate infrastructure nical assistance were for engineering or project Loans and Credits: ASIA (Million US dollars) 16 16 preparation work in the field of public services miles; and feasibility studies on another 2,365 (see below, page 27). Institution building, the cre- miles. The project will also provide funds for con- ation or improvement of institutions in member sultants' services designed to help Brazil's National countries for the management and development Highway Department to strengthen its planning of national strategies in the field of public services and construction supervision capabilities. An $11.6 remained a major aim of Bank and IDA assistance million IDA credit to Uganda will provide funds during the year. A large number of the year's loans for the foreign exchange costs of a project for road or credits for public services, especially in the construction and rehabilitation, for new engineer- fields of transportation and electric power, in- ing and feasibility studies and technical assistance cluded allocations of funds for the training of local (including personnel training) to Uganda's Min- personnel, for the establishment or improvement istry of Works; the detailed engineering work for * of planning units within government departments the road construction and rehabilitation compo- or for the development of units for project man- nent of this project was financed by a 1967 IDA agement and supervision. credit. These and a number of other road loans and credits made during the year illustrate the Transportation workings of the project cycle. The preparatory The value of loans and credits for transporta- work for the construction component of a given tion rose sharply during fiscal 1970. The 34 such project is financed by a loan or credit made in a loans and credits totaling $660.8 million made previous year; when the new construction work to 28 countries included a $25 million loan to is undertaken, the loan or credit to finance it con- Nigeria for a transportation rehabilitation proj- tains an allocation of funds for preparatory work ect, the proceeds of which are to be used for three on the next stage of construction. In this way the transportation subsectors, roads, ports and rail- Bank and IDA are able to help member countries ways. $40-1.4 million was provided for roads, build up a coherent on-going program of highway $168.8 million for railways, $48.1 million for ports development. and $42.5 million for pipelines. In addition, three Road projects need not necessarily involve ma- IDA credits totaling $2.9 million were provided jor new construction work; apart from allocations for project preparation work in this sector (see for technical assistance or institution building below, page 27). (mentioned abovei a number of the loans and The $401.4 million provided for roads during credits approved during the year were for im- the year included loans or credits to Brazil, Came- provement or maintenance of existing roads. For roon, the Central African Republic, Chile, Colom- example, commitments included a $6 million Bank bia, Congo (People's Republic of), Costa Rica, loan for maintenance to Paraguay, undertaken on Iran, Kenya, Mali, Mexico, Morocco, Nigeria, Pa- the basis of a road maintenance master-plan pua and New Guinea, Paraguay, Rwanda, Senegal, financed by an earlier Bank loan; a $7.7 million Tanzania, Uganda, and Yugoslavia: in addition, IDA credit for road maintenance and pre-invest- $12.4 million of the Nigerian rehabilitation loan ment studies in Mali, and a $4.3 million lDA credit was allocated to roads. Projects covered all types for maintenance in the Central African Republic. of road development, from major highways to A $14.6 million joint Bank/IDA lending operation small agricultural and feeder roads. Many of the in Mlorocco will finance extensive road mainte- projects stemmed from feasibility or engineering nance and improvement works as well as the con- studies undertaken in previous years with either struction of 64 miles of new roads. Bank or UNDP assistance; many new loans and Several of the loans and credits made for roads credits also contained allocations of finance for during the year were designed to provide trans- studies designed to lay the groundwork for future portation facilities in support of countries' agri- projects. cultural development. The Uganda and Morocco - The year's largest lending operation for roads projects mentioned above, together with a $23.5 was a $100 million Bank loan to Brazil. This was million Bank loan to Kenya for trunk, feeder and the second of a series of loans expected to flow farm access roads, and a $19 million joint Bank/ from a two-stage comprehensive transport survey IDA lending operation for road improvements and for which the Bank made a first stage $1.5 million feasibility studies in Cameroon are examples of grant in 1965; the second stage, partially financed projects whose major justification was in terms of by the UNDP and the United States Agency for the benefits they would provide to agriculture International Development (AID), is nearing com- (and to tourism in the cases of Morocco and pletion. This $100 million loan will provide funds Kenya). for the construction and paving of 541 miles of Lending for railways during the year included a major roads; the improvement of a further 785 $55 million joint Bank/IDA lending operation in miles; detailed engineering work covering 1,420 Korea, a $55 million IDA credit to India, a $42.4 17 million Bank loan to the East African Railway Cor- previous assistance for physical port works, but poration, the entity responsible for the rail net- the IDA credit made during the year for develop- work of the East African Community (Kenya, Tan- ment of the port of Tamatave had been preceded zania and Uganda)-its third for the Community's by a Bank-financed pre-investment study forwhich railways-and a $5.2 million loan to Cameroon, a grant of $196,500 had been made in fiscal 1968; together with $11.2 million of the Nigerian re- the $2.1 million IDA credit to The Gambia was the habilitation loan. The credit to India was the first Bank Group commitment to that country. Group's tenth measure of assistance to that coun- Most of the year's port loans were of method- try's railways, which are of particular economic ological interest in that their evaluation included importance in that country. The IDA funds pro- some "queuing" analysis to derive information vided will assist a two-year expansion program about ship stays in ports. In particular the East whose total cost is estimated at over $700 million, African Harbours Corporation loan was under- of which over $600 million will be provided by taken with the assistance of a simulation model funds generated by the railways' operations and which enabled the Bank to refine considerably its from Indian government sources. evaluation of the size and timing of the invest- The East African railways loan was one of two ments. This simulation model was developed en- made during the year to the transport corpora- tirely within the Bank. In this as in other lending tions of the East African Community. The second, sectors, the Bank's staff is continually refining its of $35 million, was for port development. This project appraisal methods by developing new loan, together with a $9.6 million IDA credit to the techniques of quantitative analysis. often involv- Malagasy Republic, a $2.1 million credit to The ing computer simulations, which can usefully be Gambia and the port component of the Nigerian applied to its operational work. rehabilitation loan ($1.4 million) made up the Two loans for pipelines were signed during the $48.1 million provided by the Bank and IDA for year, for a total value of $42.5 million. These port development during fiscal 1970. loans were designcd to assist the construction of The East African Community had received pre- natural gas pipelines in Bolivia and Pakistan. The vious World Bank assistance for port improve- loan to Pakistan amounting to $19.2 million, will ments; the Malagasy Republic had received no assist the further expansion of the Sui Northern pipeline. In addition to the above activities the Bank has Loans and Credits: TRANSPORTATION some airport projects under preliminary appraisal. (Million US dollars) Careful project appraisal is hasic to all Bank and IDA lending. In app;aising transportation projects, the two institutions attach particular importance to the coordination of different modes of trans- portation. This stress on coordination also applies to the pre-investment studies undertaken hy the Bank and IDA. which often lead to a group of projects involving loans or credits to more than : .'' :: xiiVi:E:S fff s f; f : :;one transport sub-sector: the major studies under- taken in Brazil, for example, are concerned with fi SS 3862.4 X 0 . X 0 ;: ; 0 ;; ifrailways and ports as well as roads. The Bank is : : S R | 2 S 0 ;: :0f0::: 0V: : X : : 0 increasingly using sector-wide studies to deter- -0:20 : : E 10 si 00 0: : :0 ? : 00 ;S mine a strategy for transport development and to determine the priority of different transportation projects for which financial assistance is sought. Apart from the physical improvements they help to provide, the Group believes its projects should encourage member countries to create or improve their own institutions for the management and development of national strategies in this as in other sectors. A large numher of the transportation 964-6 : 1 |; 9 0 70 X ;6|_ _ _ loans and credits approved during fiscal 1970 in- cluded allocations of funds for the training of local personnel, for the establishment or improvement of planning units within government departments or for the development of units for project man- agement and supervision. 18 Electric Power Liberia and Malawi-which had not previously Bank and IDA lending for electric power devel- obtained Bank Group finance for this purpose. opment in member countries totaled $537.3 mil- A $15 million IDA credit to Indonesia will help lion in fiscal 1970. The two institutions supported that country's national power authority to improve projects designed to improve generation, trans- its managerial and operating capabilities, and will mission or distribution facilities in 14 countries. assist the expansion of Djakarta's electricity dis- In addition an IDA credit of $2.5 million was pro- tribution network, which is currently unable to vided for project preparation work in this sector serve the growing needs of the city's four million (see below, page 27). people. The credit also provides funds for the Power lending remains a major subsector of foreign exchange costs of a two-year program of total Bank and IDA financing for a number of rea- organizational and training assistance, to be car- sons. First, an adequate level of electricity supply ried out by consultants; institution building assist- has become a prerequisite for countries' economic ance of this kind is of particular importance to growth. Second, lending for power, as for other Indonesia, which faces an acute shortage of man- infrastructure projects, represents an input into the agerial and technical skills. A $7.4 million Bank whole economy of a country, benefiting other loan to Liberia will nearly double the generating sectors such as industry, commerce and tourism. capacity of the electricity system serving Mon- Third, the demand for power rises very rapidly rovia, that country's capital, and its main port. A once the growth of these sectors gets properly $5.3 million IDA credit to Malawi will help to under way, and shortfalls in supply can seriouslv finance a power expansion program which will hinder further progress. Fourth, power projects serve the growing needs of the country's most are heavy consumers of capital, of vhich a large important region; the credit will provide funds for proportion often needs to be found in the form the foreign exchange costs of new hydroelectric of foreign exchange. and thermal generating plant and will also assist The geographical scope of Bank and IDA power the training program of NMalawi's Electricity Supply lending continued to broaden during the year. Commission. The expansion of clistribution and Funds were committed for electricity generation transmission facilities under this program will be or transmission in three countries - Indonesia, assisted by a $3 million loan provided by the Afri- can Development Bank; this is the first timea mem- ber of the World Bank Croup has joined with the Loans and Credits: PUBLIC UTILITIES AfricanDevelopmentBanktohelpfinanceaproject. tMilion US doi,ars) (Million US dollars) The Malawi credit was one of several examples during the year of lending operations undertaken by the Bank or IDA in conjunction with other sources of external finance. Apart from participa- tions in loans taken up by banks in developed countries, arrangements may be made for parallel financing of different components of a project by the Bank and other institutions, as in the case of Malawi, or for joint financing of particular items bv the Bank and financial institutions in countries r u 9 . _. where orders for equipment are placed. Such joint financing arrangements were made for projects supported during the year in Mlexico and Brazil, .- . z _ X c;for which the Bank provided loans of $125 million 376.6 X and $80 million respectively. Complementary fi- nancing arrangements not only help the borrower but also provide encouraging demonstrations of the possibilities for international cooperation in . I ; . tfinancing development projects. Details of the j oi nt fi nancing arrangements made for the Mexican and Brazilian projects are given on page 30). The Mexican loan was the year's largest in the power sector, and made Mexico the Bank's second 1 _ S 964-6 1969 1970' -largest borrower for all purposes, net of cancella- Average tions. The present loan is the latest in a series which have assisted the expansion of Mexico's power sector since 1949: the growth of power 19 Loans andc'reUts: EJROPE . supplies has supported the evolution of the econ- ance to projects in this field now stands at $175.1 omy to a stage where manufacturing is now the million. largest sector. The Bank made a loan of $18.5 million to A major aim of Bank Group power lending is Colombia in fiscal 1970. A $14 million 1968 loan institution building within the power sector. The had supported the improvement of the supply to development of well-managed, efficient power the capital, Bogota; the new loan will help finance authorities can be fostered by the provision in water supply and sewerage in Cali. The $10.5 loans or credits to new borrowers of finance for million IDA credit to Tunisia made during fiscal organizational improvements or staff training- 1970 was also the second measure of Bank Group as in the case of the IDA credits to Indonesia and assistance to that country for water supply (a $15 Malawi-or through relationships built up over million Bank loan had been provided for this the years with existing borrowers. The Bank and purpose in fiscal 1969). IDA value such relationships, both because they The year's other commitment, a $3.5 million assist the process of institution building, and be- IDA credit to Ghana, will support the extension cause they enable the Bank and the borrower to of the water distribution system in the capital, evolve and adapt on a continuing basis agreed Accra, and the neighboring port of Tema, together long-term programs for the expansion of the with the installation of a modern sewerage system power sector as a whole. Apart from the loans to in Accra. The Ghana Water and Sewerage Corpo- Mexico and Brazil mentioned above, loans or ration, which will administer the project, was es- credits for projects which form parts of ongoing tablished in 1966 with the assistance of the UNDP. programs of system improvement and extension Water supply projects provide valuable benefits were also made to Argentina, Ceylon (2), the Re- to the populations of areas in which they are lo- public of China, Colombia, Costa Rica, Cyprus, cated, but there are often serious problems in- Honduras, Panama and Thailand during the year. volved in setting up sound projects for this purpose. The need for such projects is usually Water Supply and Sewerage greatest in the rapidly growing cities of the devel- Three commitments totaling $32.5 million were oping world; all too often, however, these cities made for water supply and sewerage during the do not charge or collect adequate tariffs, and are year under review, to Colombia, Ghana and Tu- dependent on their countries' already overbur- nisia. The cumulative total of Bank and IDA assist- dened national budgets for urgently needed funds. 20 This situation, which often leads to the unavail- to increase the number of telephone lines in the ability of sufficient funds to carry out projects, country from 400,000 to 1,400,000, almost to underlines the desirability of adequate levels of quadruple the number of long-distance circuits, charges which will provide the funds to enable and to improve international telecommunications the water authority to work effectively. links by providing new automatic exchanges and The Bank Group is also concerned that the constructing a ground station for satellite commu- water authority has, or can develop, the ability to nications using the INTELSAT network. Bank funds execute and operate the project in a reasonably will assist the long-distance and international -effective manner. This often requires a large meas- improvements. ure of institution building. The Bank's concern The project to be assisted by the IDA credit to with rate levels and institution building is part of Nepal is small by comparison, but is nevertheless .its overall policy of taking every possible step to of great economic significance to the country. see that the projects it assists provide a soundly Because Nepal's terrain makes surface or air based, economical and self-sustaining service to communications between different parts of the the community for whose benefit they were country peculiarly difficult, telecommunications established. facilities are of special importance. The $1.7 mil- Notwithstanding the real difficulties involved lion IDA credit wvill provide part of the foreign in establishing and expanding properly managed exchange costs of a project to expand existing water supply systems, the Bank hopes it may be telephone exchanges and long-distance networks able to support further projects during the coming within Nepal, and to establish new facilities for years in this area of urgent need. It encourages international telephone and telex services. The and assists in the preparation of suitable projects Government of India is joining with the Bank and and examines with special interest UNDP pre- the Government of Nepal in financing the project. investment studies in this field being carried out During the year, IEC also undertook a commit- by the World Health Organization (WHO). ment in the field of telecommunications, through Telecommunications its purchase of $4.5 million of an $11 million de- benture issue made by the Philippine Long Dis- Adequate telecommunications networks pro- tance Telephone Company. Further details are vide a powerful stimulus to industry, commerce available in iFC's own Annual Report. and tourism; they also assist the development of efficient government and administration. The Financing Industry Bank and IDA have continued to expand their The Bank and IDA help to promote member lending for telecommunications projects during countries' industrial development through loans the year under review. The year's lending, totaling and credits to development finance companies, $84.6 million, brought the overall total of Bank/ which relend the funds provided to productive IDA lending in this field to nearly $400 million. industrial or commercial entities in the country The six telecommunications projects supported concerned, and through loans or credits for spe- during the year ranged from the first loan or credit cific industrial projects in member countries. In made by the Bank Group to Nepal (a $1.7 million addition, IDA credits have been provided under IDA credit), to a $40 million Bank loan to Yugo- special circumstances to two governments for the slavia, the Group's first loan for telecommunica- purchase of imports of raw materials and com- tions to that country. Other lending operations ponents essential for the operations of specified undertaken for this purpose during the year in- industries. Finally, investments by IFC in produc- * cluded Bank loans to Costa Rica ($6.5 million), the tive private enterprise ventures in the developing East African Community i$10.4 million) and Singa- world represent an important part of overall Bank pore ($11 million), and an IDA credit of $15 mil- Group financing of industrialization in member * lion to Pakistan. countries. The year's largest and smallest loans in this field, Before considering the vear's record in each of to Yugoslavia and Nepal, serve as good examples these categories, it is worth noting that Bank of the importance of telecommunications in two Group lending for agricultural, educational and different developing countries. Yugoslavia is a public service projects helps to provide member country with a relatively high per capita income, countries withi some of the major prerequisites of an expanding industrial sector, and an important industrial growth - a cash economy, a trained tourist industry. It has a well developed, largely labor force and an adequate stock of physical in- automatic telephone network, but recent rapid frastructure. Moreover, under the Bank's general economic growth has created a surge of demand policy with regard to procurement of goods fi- far beyond the capacity of the existing system. The nanced by its lending, a margin of preference project supported by the Bank's loan is designed equivalent to 15%, or the actual tariff rate if it is 21 lower, may be applied to bids submitted by local a record in terms of the value of commitments, suppliers in the borrowing country for contracts the number of companies assisted, and the num- under Bank-financed projects. (In certain cases, ber of new countries to which loans and credits such a margin of preference may be extended to were made. suppliers in other countries which are members The $5 million IDA credit to the Societe Con- of a regional grouping to which the borrowing golaise de Financement du Developpement country belongs.) Finally, the technical assistance (SOCOFIDE) in the Congo is of special interest. and advice which the Bank Group provides to SOCOFIDE, a new type of organization for the member countries contribute to the adoption of country, is charged with financing productive bus-. national economic policies and the building of iness ventures, and also with promoting Congo- local institutions conducive to industrialization lese enterprise. Finance for the new company was along sound lines. provided not only by IDA, but also by IFC, by local. A growing number of the Bank's member coun- investors, by the Congolese government and by tries have reached the stage where they can make financial institutions in Belgium, France, the Fed- good use of infrastructure built in past years, often eral Republic of Germany, Italy, Japan and the with Bank Group assistance, for further economic United States. This credit is only the fourth Bank/ development based on industrial growth.The Bank IDA commitment to a development bank in sub- is presently engaged in a reconsideration of its Sahara Africa. The Bank and IDA are anxious to in- industrial financing policies with this in mind. crease their lending in this area and have been Overall Bank and IDA assistance to industry expanding their exploratory work to this end, but during fiscal 1970 totaled $367.5 million. Of this many African countries still need substantial total, loans and credits to development finance amounts of technical assistance in setting up effec- companies amounted to $216 million, and com- tive and viable development finance companies. mitments for specific industrial projects to $76.5 The $20 million IDA credit to the Industrial million. In addition one IDA credit of $75 mil- Development Bank of Pakistan (IDBP) is one of the lion was provided for imports of industrial mate- first Bank or IDA lending operations for a devel- rials. The investments of IFC in productive private opment bank with majority government owner- enterprise ventures in the developing world to- ship, following the change of policy made pre- taled $111.8 million in the fiscal year. As in previous years, loans and credits to devel- L opment finance companies absorbed the largest Loanus and Credits: INDUSTRY* single share of Bank Group industrial financing. , U These companies can play a vital catalytic role in the mobilization of capital for industrial and com- mercial development by providing loan or equity finance, by underwriting security issues, by serving as financial intermediaries between local and for- eign businessmen and by providing locally estab- lished companies with managerial and technical advice. Development finance companies often also perform a useful institutional function within countries' financial structure by encouraging the development of capital markets. The Bank and IDA have now lent a cumulative total of more than $1,000 million to some 30 development fi- nance companies in member countries. The $216 million provided by the Bank and IDA during fiscal 1970 was lent to finance com- C f panies in twelve countries. Four companies, in Brazil, Congo (Democratic Republic of), Pakistan ,X and Singapore received their first loans or credits from the Group (although funds had been previ- ously provided to a different company in Pakis- tan). The eight other companies assisted during the year in Ceylon, the Republic of China, Greece, 1964-68 1969 197 India, Israel, Morocco, the Philippines and Tu- . 1Average nisia, had all received previous Bank Group fi- nancing. Lending during fiscal 1970 represented *excluding industrial imports credits 22 viously to permit such financing. The credit will its Washington headquarters, or secondment of help IDBP to provide finance mainly to medium World Bank staff members to work in the offices sized firms, and its benefits will be focused on of the development bank concerned). The estab- industrial and commercial development in East lishment or improvement of sound lending cri- Pakistan, hitherto a relatively poor region com- teria, staff expertise and efficient operating pared to West Pakistan. The credit will comple- procedures are as important for the effective ment the assistance provided by the Bank Group working of development banks as the provision in previous years to PICIC, Pakistan's other main of finance. The Bank Group's involvement with source of long and medium term development development finance companies extends, there- finance, fore, far beyond providing them with funds; it The other two companies assisted during the intends to increase still further the amount of time year which had not previously received Bank or it spends on technical assistance to such institu- IDA finance also have majority government share- tions, and to extend such assistance to new ones, holdings. A Bank loan of $25 million was made to during the coming years. the Banco do Nordeste do Brasil, a government- As noted above (page 21) the Bank and IDA sponsored regional development bank which, also provide cdirect financial assistance for specific since its establishment in 1952, has been a prin- industrial projects in member countries. Four cipal instrument for promoting the development loans or credits of this kind, totaling $76.5 mil- of the Northeast. That bank works in close coordi- lion, were approved during the year under review, nation with the Brazilian planning agencies de- to the Dominican Republic, Indonesia, Pakistan voted to improving the infrastructure and raising and Yugoslavia. The year's largest commitment of the level of production in the Northeast. The this kind was a $30 million IDA credit to Indo- fourth new company, to which the Bank lent $5 nesia for fertilizer production; the credit will help million during the year, is the Development Bank an existing and well-run fertilizer operation to ex- of Singapore which is 49% government owned. pand its output from 100,000 to 480,000 tons of This company, established less than two years urea per vear, and thus help the expansion of ago, will play a key role in the development of Indonesia's agricultural production. Complemen- export-oriented industries in Singapore and in the tary financing arrangements 'were made for this creation of commercial urban facilities. project involving funds supplied by the Asian As noted above, IFC participated in the financ- Develoment Bank, Japan, ancl the United States. ing of SOCOFIDE, in the Congo, subscribing $0.8 The $25 million Bank loan to the Dominican million of the company's capital. Other commit- Republic is for a large integrated nickel-ore min- ments made by IFC to development finance com- ing and processing operation. The Bank loan will panies during the year included a $0.1 million help finance the costs of a thermal power station, increase in its equity investment in a Colombian including the pipeline wvhich transports fuel from company; a $10 million loan to Adela Investment the coast to the project site. The project vwill tap Company, S.A., a private financial institution a rich source of mineral wealth, will help diversify whose charter permits it to assist enterprises economic activity and will provide the country throughout the Western Hemisphere, with the with valuable foreign exchange earnings. (An exception of Canada and the United States (the agency of the Dominican Government is a share- Group's first measure of assistance to a develop- holder in the corporation set up to operate the ment finance company which operates in more project, which is jointly sponsored by established than one country); a $0.6 million increase in its Canadian and United States companies.) This is equity holding in a Tunisian finance company; and the first Bank Group operation in the Dominican a $2 million investment in a new development Republic. The year's other two lending opera- finance company in Yugoslavia. IFC's operations tions were an $18.5 million Bank loan to assist in this sector totaled $13.5 million, and brought the automotive and ancillary industries and spe- the total of Bank, IDA and IFC investment in de- cialized steel production in Yugoslavia. and a $3 velopment finance companies during the year to million IDA credit to Pakistan for small industry $229.5 million. development. The Bank Group is anxious further to expand A new Industrial Projects Department has been its support of development banks, both through formed to take responsibility for the Bank's direct lending and technical assistance. Such assistance lending to industrial entities. The Department is can take a variety of forms, including help with also responsible for assisting member countries the establishment of new institutions, finding staff, in the formulation of policies for industrial devel- organizational and managerial advice, and staff opment, for undertaking industrial sector studies training (which may involve either secondment of and for providing project-linked technical assist- key local personnel to work with the Group at ance or help with institution building wv,here nec- 23 essary. Activities of this kind are becoming an million loan to IFC to replenish the Corporation's increasingly important element in the overall pat- loan funds; this loan incorporated and replaced tern of Bank Group assistance to this and other a 1966 $100 million loan, which had become al- sectors. most totally committed by the middle of fiscal Under special circumstances IDA credits have 1970. IFC expects to expand its activities still fur- been used to provide funds for essential imports ther during the years to come. of industrial materials needed for the production of capital goods. One operation of this kind was New Areas of Lending undertaken during the year, a $75 million IDA credit to India. The credit will help provide for- Population eign exchange, urgently needed by a number of The Bank's interest in the population field arises industries which make a vital contribution to from its awareness that the high rates of popula- India's overall development effort, for the pur- tion growth in many of its member countries can chase of imported raw materials and some essen- severely impede their economic development ef- tial components and spare parts. The industries forts. At the same time, the Bank is deeply con- assisted under the credit produce commercial scious that this is a complex and sensitive area, vehicles, tractors, automotive ancillary parts, ma- involving difficult ethical, political and social chine tools, cutting and small tools and abrasives, issues in addition to the technical aspects of the electric motors, fertilizers and pesticides. The problem-economic, demographic and medical. value of their combined production is expected The Bank believes that greater awareness is to exceed $1,000 million in 1970-71, and they needed of the problems associated with excessive provide employment for about 160,000 people. population growth, and that it should be ready to Industry is playing an increasingly important part assist member governments seeking help in de- in India's economy, both through its direct con- veloping population policies and programs, and trihution to employment and income and through in the improvement of existing programs. A Popu- the provision of domestically manufactured goods Vlation Projects Department was set up in fiscal required as inputs by other sectors, notably agri- 1969 to undertake responsibility for Bank Group culture and transportation. ' activities in this area. Investments by IFC form an important and The Bank has responded to a number of re- growing type of Bank Group assistance to industry. quests for technical and financial assistance from IFC makes equity or loan commitments to pro- member countries during the year under review. ductive private enterprise in the developing world. It undertook its first such lending operation, a The cumulative total of its investments has now $2 million Bank loan to Jamaica, in June 1970: the reached $476.5 million since 1956, when it was loan will help the government to develop a post- founded; $204.7 million of this total has been pro- partum family planning program (i.e., for women vided during the last two years. The effectiveness who have just given birth) by financing the con- of IFC's activities cannot, however, be measured struction of an extension to Jamaica's largest in terms of its own investments alone; IFC com- maternity hospital in Kingston and of a number of mitments are designed to stimulate participation rural maternity centers. Following a joint United in IFC-supported projects by outside investors Nations-World Health Organization-World Bank from the developed world. To date, the total of advisory mission to Indonesia, a five-year family such counterpart funds generated by IFC invest- planning program has been recommended to the ments amounts to $2,132.7 million, of which Indonesian Government. Pre-appraisal missions $772.5 million has been provided during the past have visited a number of countries during the two years. year with a view to subsequent Bank Group as- IFC financing during fiscal 1970 totaled a rec- sistance. ord $111.8 million, of which $80 million was Technical assistance is often as important a provided for manufacturing, and the remainder requirement as financial assistance in the family for development banking ($13.5 million), mining planning field. Advice on program planning, ad- ($12.4 million), services ($4.5 million), and tour- ministration, evaluation, personnel training and ism ($1.4 million). Investments provided by out- communications is of the greatest value in pro- side participants in IFC-supported projects totaled moting the effectiveness of programs. The Bank $380.9 million during the year. expects such activities to form an important part As the chief source of Bank Group funds for of its effort in this area. private enterprise development, IFC plays a cru- 1 The Bank is making intensive efforts to increase cial role in the Group's overall strategy for stimu- its expertise in the field of population problems. lating member countries' balanced economic Staff members keep in close touch with other growth. During the year the Bank made a $200 organizations working in this field; international 24 consultants have served on the Bank's missions. before a satisfactory range of projects can be de- The Bank expects to expand its operational and vised, and plans need to be drawn up for the analytical activities in the coming years, in line coordinated development of both basic infrastruc- with member countries' requirements for tech- ture and "superstructure" facilities (hotels, restau- nical and financial assistance. rants, etc.). If a tourism project is to succeed, visitors need Tourism to be provided with adequate facilities for both Tourism is already a major source of foreign ex- accommodation and recreation. The Bank is work- change earnings for a number of the Bank's devel- ing on an approach to tourism development in- oping member countries, and could become of volving the creation of tourism complexes which similar importance in others. Moreover, tourism will include all necessary amenities, ranging from .facilities are labor-intensive; their development basic infrastructure services to recreation facili- can therefore help significantly to mitigate the ties. Tourism projects require careful and lengthy severe unemployment problems facing most planning, however; by the end of fiscal 1970, the countries in the developing world. first full year of the Tourism Projects Department's Because of the importance it attaches to tour- operations, two projects were under appraisal, ism development, and because of the complex- while the remainder were still at the identification ities involved in the preparation of soundly based or preparation stage. projects in this field, the Bank established a new Apart from preparatory work on its own Tourism Projects Department in fiscal 1969. Much projects, the Bank acted during the year as Execut- of the Department's work during the latest fiscal ing Agency for a project funded by the UNDP, de- year involved project identification and prepara- signed to provide a tourism master plan for the tion. Member countries generally lack expertise island of Bali. The Bank's Tourism Projects Depart- in this field, and require extensive help with the ment also cooperates closely with IFC on the preparation of master plans for the tourism sector Corporation's tourism investments: the cumula- as a whole, of feasibility studies for individual tive amount of these investments (including the projects, and with the development of managerial two totaling $1.4 million made in fiscal 1970) now and operational skills. Research on the magnitude stands at nearly $20 million. Finally, development of potential tourism demand must be undertaken finance companies in Morocco and Tunisia as- Loans and Credits: LATIN AMERICA and CARIBBEAN (Million US dollars) A %o .~~~~~~~~~~~~~~~~~~~~~~~ 25 sisted by the Bank Group have provided funds and others, the plans of the Lower Mekong for tourism development. Committee, which is composed of the four coun- tries through which the Mekong River runs (Cam- Special Projects bodia, Laos, Thailand and Viet-Nam). The Bank The Bank is already involved, and expects to is also reviewing a number of small agricultural become more so, in activities related to inter- pilot projects and larger schemes tentatively put sectoral projects whiclh involve lending in a forward, and is exploring ways of developing re- number of different areas. The Special Projects lations between the riparian countries on the one Department set up in fiscal 1969 to work on such hand and possible donor countries and organiza-- projects has been responsible during the year tions, including the Bank itself, on the other. under review for Bank/IDA activities in three fields: continuing support for the program of inte- grated water and agricultural development in East Technical Assistance and Pakistan; the identification, preparation, prein- vestment, appraisal and economic review work Other Activities required for subsequent lending for urban and regional development projects; and investigation Technical Assistance of the most effective role for the Bank Group in During the past year the activities of both na- connection with the development of the Mekong tional and international institutions in the field River basin. of economic development, and the adequacy of Inthefirstofthesefields,theBankstaff indicated programs of technical assistance to developing during the year to the members of the Pakistan countries, have been subjected to a number of Consortium possibilities for the general intensifi- intensive reviews. At the national level, several cation of the East Pakistan Agricultural and Water governments with substantial bilateral technical Development Program, with which it has been in- assistance programs have undertaken thorough volved since 1967 in a technical capacity. Two IDA examinations of their policies and methods. At the project preparation credits associated with this international level, the effectiveness of technical program were approved during the year, with a assistance in general, and its role in relation to combined value of S3.2 million (see below, page particular sectors, such as agriculture, have been 27). Apart from such lending operations for spe- studied by the Secretariat of the Organization for cific purposes, the Bank is continuing to provide European Cooperation and Development (OECD) assistance in the coordination of the program as and discussed in its Development Assistance Com- a whole. mittee; the record of the United Nations and its The second field, that of coordinated urban Specialized Agencies in providing technical as- and regional development in a number of project sistance over the past twenty years, and their ca- areas, is, as such, new to the Bank,-although many pacity to do so effectively in the future, were individual projects in the existing sectors of educa- examined in the "Study of the Capacity of the tion, industry and public services have contributed United Nations Development System" directed by directly or indirectly to the mitigation of urban Sir Robert Jackson. This examination included a problems. The Bank considers, however, that the valuable internal review by each agency of its own time has come to develop an integrated approach programs, organization and effectiveness in assist- to urbanization. The problems of cities (which are ing its developing member countries. considered in the special section of Part II of this Two general guiding principles have emerged Report; see below, page 57) are not unique, but from the process of reappraisal. The first, which- they are particularly complex; their difficulty is lies at the heart of the World Bank's approach to increased by the fact that concurrent action is the development process, is that the selection of often needed on the part of several institutions, development projects or programs for interna- while city governments which should coordinate tional support-technical or financial-must be action programs are often relatively weak and undertaken in the context of a program or set of lacking in managerial and financial resources. The priorities established by each country and cover- Bank Group intends to consider financial and/or ing all its major development requi-ements. The technical assistance for urban development in the second principle is that the UNDP, particularly its years to come. Resident Representatives, should play a central The third special intersectoral field in which the role in coordinating and providing the inputs of Bank was involved during the year was the Me- pre-investment and other technical assistance kongdevelopment program. In orderto determine from the United Nations system to each partici- its own role, the Bank is currently evaluating, pating country. in consultation with the Asian Development Bank The establishmentof investment priorities based 26 on sound economic criteria, firm adherence to of $0.4 million and 51.5 million were provided to such priorities once they are established, and the Burundi and Ghana respectively for highway en- development of expertise in project preparation gineering and (in the case of Burundi) mainte- and implementation, are essential for the success nance studies. Two credits to Pakistan, of $0.8 of the development process. The World Bank has million and $2.4 million, will provide funds for broadly concentrated its technical assistance, the engineering studies designed to help lay the bulk of which is geared to its lending program, foundations of an adequate irrigation system in on these areas in the past, and will continue to East Pakistan: these studies are associated with do so. During the year under review, with the the East Pakistan Agriculture and Water Develop- expansion of its lending program, the scope of ment Program (see previous page). A third credit the Bank's technical assistance activities has also to Pakistan, of $1 million, will help finance studies increased. relating to the development and expansion of the As in the past, the principal mechanism for the port of Karachi. This work will be closely inte- Bank Group's financing of technical assistance grated with other studies of the port's future de- during the 1970 fiscal year was through the in- velopment which are being financed by the UNDP clusion in its regular project loans and credits of and being carried out under Bank supervision as funds for studies to identify and prepare further Executing Agency. projects for the same borrower (e.g., a power authority) or in the same sector (e.g., agriculture). Grant financing: The Bank made only one tech- During the year, Bank loans or IDA credits with nical assistance grant in fiscal 1970-an allocation a combined value of $1,041.0 million contained of $180,000 to Ethiopia for a water supply and funds for technical assistance activities. The tech- sewerage study in Addis Ababa, the capital. The nical assistance component of this lending Bank has reduced its grant financing activities fol- amounted to $40.4 million. Of this total, $15.3 lowing policy changes made by the UNDP in mid- million was provided for feasibility studies of 1969, which enabled that organization to provide future projects. $23.0 million was provided for funds promptly and under simplified procedures consultants or outside experts to help in organ- for relatively small studies which might otherwise izing the projects being financed, and to provide have given rise to requests for Bank grants. This managerial or technical services during their early increased flexibility in UNDP procedures should stages. The remaining $2.2 million was provided make it unnecessary for the Bank to provide grant for training and overseas fellowships to enable financing for small preinvestment studies on any borrowers to become self-supporting in manage- significant scale in the future. The Bank is, how- ment and other essential project skills as soon as ever, prepared to organize such studies for the possible. UNDP; during the year under review it agreed Bank Group technical assistance also takes a to do so in four studies, funded by the U,NDP at number of other forms: (a) special loans or credits a total cost of $478,000, in Afghanistan, Burundi, for project preparation, usually involving engi- Malawi and Rwanda. The Afghan and Burundi neering and/or feasibility studies; (hi grant financ- studies are illustrative of those handled under ing (up to S200,000) for small preinvestment these arrangements. The former is an investiga- studies in those relatively rare cases wvhere the tion, costing approximately $60,000, of the pros- studies cannot, for some reason, be financed by pects for expansion of Kabul Airport; the Burundi the LJNDP; and (c) work as Executing Agency for project is for the identification and study, at a projects financed by the UNDP. The missions and cost of about $170,000, of a small hydroelectric representatives which the Bank maintains in a power site. number of countries, together with the staff mem- bers it seconds from time to time to work with Execution of larger UNDP financed projects: governments, and the advice and assistance which During the year, the UNDP approved nine major it is prepared to provide to governments on de- projects, representing commitments totaling al- velopment planning also make up a valuable most $9 million, for which the Bank was desig- source of on-the-spot technical assistance. nated Executing Agency. One of these will entail Project preparation: During the year under re- the recruitment of staff for the Caribbean Devel- view, six project preparation credits were ex- opment Bank, which came into existence during tended to four countries for studies in the sectors the year. Under another project, advice and sup- of agriculture, transportation and electric power. port will be provided to the Philippine Board of A $2.5 million IDA credit to Botswana will finance Investment. Similar assistance is being given to the consultants' services and design coordination work Agricultural and Cottage Industries Bank of for the infrastructure needed to support a pro- Afghanistan. Other UNDP financed projects ap- posed nickel mining development project. Credits proved during the year for which the Bank is 27 Executing Agency are transport studies in Afghan- valuable and increasing support to Bank and IDA istan and the Ivory Coast, a power study in Pan- activities in the agriculture and education sectors. ama, a tourism investigation for the island of Bali (See above, page 13 for cooperative activities in in Indonesia, the previously mentioned feasibility agriculture, and page 16 for those in education.) studies of the port of Karachi, Pakistan and a re- The Bank's Permanent Missions in Eastern and search project on water resources in East Pakistan. Western Africa, located in Nairobi and Abidjan By the end of the 1970 fiscal year, the Bank had respectively, have continued to provide African been designated as Executing Agency for 62 member countries with assistance in putting for- UNDP financed studies, for a total value of $57.2 ward priority projects suitable for Bank Group' million. Seven studies were completed during the financing, especially in agriculture and transpor- year, and a further 30 were under way. Many of tation, while the Bank's Agricultural Development these studies are intended for early investment Service, attached to the Eastern Africa Mission, has' follow-up. Ten studies completed in this and continued to assist governments in Africa on a earlier years had led to a cumulative total of Bank reimbursable basis with the management of cer- or IDA project financing amounting to $918.9 mil- tain agricultural projects. lion as of June 30, 1970. The Bank maintains Resident Representatives Detailed analyses of member countries' econ- and staffs in India and Pakistan, and a Resident omies, and of priority areas for subsequent invest- Economist in Colombia. During the year, Resident ment, help to provide the essential framework Representatives were assigned to Afghanistan and within which the Bank's own lending programs Ethiopia, and a new Bank Resident Mission was are formulated; such analyses also represent a established in Nigeria to help the Government useful form of technical assistance to member with reconstruction, planning and project identifi- countries themselves. During the year under re- cation. view, steps were taken to expand the coverage of The Bank's Resident Staff in Indonesia, estab- the Bank's country economic reports and to lished in June 1968, has continued to help the develop programs of preinvestment studies in Government of that country to identify priority close cooperation with the UNDP. The new cotn- areas for external assistance. The Resident Staff prehensive economic reports will include more works closely with the Government of Indonesia detailed examination of the special problems of in an advisory capacity; it also provides local sup- particular sectors, such as education, agriculture port for the aid programs of members of the and industry, and will analyze in depth critical Inter-Governmental Group for Indonesia (IGGI) areas such as urbanization and employment. The and helps to identify projects for financing by the coverage in these reports of the preinvestment Bank Group and by members of the Inter-Govern- requirements of key economic sectors will also mental Group. be gradually strengthened. Staff discussions were The Bank continues to provide advisory serv- held with the UNDP and with the specialized ices to member governments facing special devel- agencies of the United Nations particularly con- opment planning problems. During the past year, cerned to enlist their support and staff assistance staff members visited seven countries to appraise in this important aspect of the Bank's work. The their development planning and policy-making UNDP, FAO, the International Labour Office machinery, and to advise on possible organiza- (ILO), Unesco and WHO have all responded tional improvements and technical assistance warmly to the Bank's requests for cooperation. needs. The secondment continued of a planning Several Bank missions received the support of adviser to the Government of Haiti, and members experts from other members of the UN family of the Bank staff were seconded to advise on during the past year and further expansion of this development planning in Ethiopia and Mauritius. cooperation at the operational level is likely. In An agricultural economist seconded to the Gov- particular, it is expected that UNDP Resident ernment of the Sudan to help in the preparation' Representatives, who have been associated with of a public sector investment program completed several of the Bank's country missions during the his assignment in April 1970. year, will increasingly play a central role in the work of such missions in assessing countries' tech- Economic Development Institute (EDI) nical assistance and preinvestment requirements. The Economic Development Institute was set up Under the Bank's Cooperative Agreements with by the Bank in 1955 to provide training courses FAO and Unesco, specialized support is provided for senior officials from the Bank's member coun- by staff members of these agencies in the identifi- tries in subjects of special relevance to develop- cation and preparation of projects for Bank financ- ment. By the end of fiscal 1970 over 1,100 such ing. The Bank reimburses FAO and Unesco for officials had attended EDI courses. The 150 par- part of the cost of this work, which has provided ticipants in the courses offered during the year 28 under review came from 683 developing countries Tunisia-Education. Students attending a science class and two international organizations, at the Teacher Training College in Tunis. This school Six courses were arranged during the year, in is one of a number in Tunisia that have been expanded, mDodernized or re-equipped wvith the as,sistance or cluding one six-month genera! course on develop- iunds irom IDA credits. ment policies and problems conducted in English, and five courses of eig-ht to eleven weeks in project-related subjects. Of the project courses, three were in English and one each in French and of other overseas courses,' including a project Spanish. The Institute has a small full-time staff; evaluation course in Athens sponsored by the staff members from the operating departments OECD, a course at the Asian Institute in Bangkok, of the Bank Group also assist as lecturers. The and a seminar in Rome on financing government length and timing of the courses are such that two enterprises, sponsored by the United Nations In- courses are offered simultaneously for much of dustrial Development Organization (UNIDO). the year. Apart from regular courses, whiich are con- Aid Coordination ducted at the Bank's headquarters in Washington, A recurring theme in the recent reviews of the the Institute assists agencies in member countries international development effort is the need for to organize and conduct locally based training better coordination of assistance at the country programs in the developing world. An eight-week level. Development assistance often still appears project analysis course for English-speaking Afri- to he furnished without the benefit of an agreed can participants was conducted in Nairobi in July set of priorities for the economic and social devel- and August 1969, in cooperation with the African opment of the country concerned. Institute for Economic Development and Planning The establishment of developmental priorities and the Institute for Development Studies at Uni- and the consequent coordination of assistance can versity College, Nairobi. [D] cooperated with the be greatly facilitated by the kind of detailed Agricultural Development Fund of Iran in offering analysis of member countries' economies and of a four-week course in Agricultural Project Evalu- major sectors within them which the Bank regu- ation in November 1969 for participants from Iran lanty undertakes and has recently expanded (see and four neighboring countries. In April and May previous page). Country economic reports are 1970, the Institute provided staff assistance and now prepared annually for some 30 of its largest teaching materials for a project evaluation course developing member countries, and every two or organized by the Government of Indonesia in three years for others. Such studies provide a valu- Djakarta. In addition, individual staff members able basis for the coordination of development served as lecturers for shorter periods in a number assistance at the country level. 29 The World Bank also supports consortia and ment Assistance Committee (DAC) of the OECD consultative groups for a number of countries. It is have given helpful consideration to the question currently sponsor of two Consortia, eleven Con- of the appropriate functions for aid groups and sultative Groups and the Aid Group for Ceylon. have endorsed the Bank's objectives in this field. During the year the Bank took over from the During the year under review the rapid expan- international Monetary Fund the chairmanship sion of the Bank's activities, combined with a sig- of the Ghana Aid Group. In addition, the Bank nificant increase in the activities of the regional provides staff support for the Inter-Governmental development banks, underlined the importance Group for Indonesia (IGGI) and the coordination of ensuring appropriate coordination between the groups convened by the Governments of Guyana World Bank and the regional banks. and Honduras; it is also a member of the OECD- Instances of joint financing of the same projects sponsored Consortium for Turkey. are given elsewhere in this report, and efforts are Fleven meetings of Bank-sponsored aid groups being made to broaden the areas of cooperation were held in fiscal 1970. For the East Africa Con- still further. World Bank economic reports, proj- sultative Group, separate meetings were held for ect appraisals and commodity studies are sent Uganda, Kenya and Tanzania; the India Con- routinely to the regional banks. Meetings take sortium met in November 1969 to consider the place among the economic staffs of all the insti- United Nations report on "Evaluation of the Fam- tutions, in order to exchange information on re- ily Planning Program of the Government of India", search programs and in other ways to improve and again in May 1970; the Consultative Group the coordination of economic work. The possibili- for Tunisia met in October 1969 and June 1970. ties of participation by staff members of the re- Single meetings were held of the Pakistan Con- gional institutions in Bank economic missions are sortium, the Consuitative Groups for Korea and being explored, and the first such participation Mlorocco, and of the Ceylon Aid Group. has taken place. While much of the coordination of develop- A systematic exchange of operational informa- ment assistance takes place at the meetings, the tion already goes on between the World Bank Bank makes every effort to encourage continuous and the Inter-American Development Bank (IDB), consultation among members and recipient gov- and the lending programs of both institutions are ernments for aid groups sponsored by it; it pro- reviewed together on a country-by-country basis. vides all members witlh economic reports, special ln addition, the IDB, the Inter-American Commit- studies, project lists, proceedings of meetings and tee on the Alliance for Progress (CIAP) and the other related documents. The Bank also provides World Bank are working out arrangements for economic and related analytical reports for aid closer cooperation in the review of country de- groups sponsored by other organizations. velopment strategies. Both operational and eco- During the year the Bank sponsored two inter- nomic missions of the World Bank regularly call governmental meetings which resulted in agree- at the headquarters of the Asian Development menits for joint financitng of Bank-assisted projects Bank in Manila on their way to or from member in the power sectors of Brazil and Mlexico. Under- countries, and discuss findings with their opposite standings wvere reached under which ten major numbers. equipment-supplying countries will join with the The World Bank and the African Development Bank in financing on a 50-50 basis orders in excess Bank, together with the UNDP and the UN Eco- of $200,000 won bv their suppliers. While the nomic Commission for Africa, have constituted exact amount to be financed by joint lenders will a coordinating committee for preinvestment depend on the result of international competitive studies in Africa. World Bank officials also visit bidding, it is expected that it will total about $40- the African Development Bank on matters of com- 45 million in the case of the Mexican project and mon interest, and it has been agreed that some of about $26 million for that in Brazil. the African Development Bank's officers should The Bank cooperates closely with other interna- receive training at the World Bank's headquarters. tional organizations concerned with development With the agreement of the member government assistance at the country level. As in previous concerned, the World Bank's missions in Abidjan years, representatives of the International Mone- and Nairobi discuss with the African Development tary Fund (IMF), the OECD, the UNDP and of the Bank, whenever that institution expresses an inter- relevant regional development bank, have at- est, projects which the missions have identified tended Bank-sponsored Consortia and Consulta- or are helping to prepare. tive Group meetings as members or observers. The Bank is also cooperating increasingly with Personnel of the UN Population Division partici- other regional organizations such as the European pated in the November 1969 meeting of the India Investment Bank (EIB) and the Fonds europeen de Consortium. Organizations such as the Develop- developpement (FED). 30 The Directors' decisions related mainly to MEETINGS OF THE PRINCIPAL AID COORDINATING GROUPS policies for the diversification of productive ac- JWYn 5. 1990J..w 30, 1970 drt. of Meeting PI-n Ch.i-e tivity in the primary producing countries, for A. Bank-Sponsored Groups strengthening the competitive position of primary 1. Consortia India November, 1969 Stockholm IBRD products, and for assistance to appropriate inter- May, 1970 Paris IBRD national commodity arrangements. The first of Pakistan February, 1970 Paris IBRD these objectives was furthered by the Group's 2. Consuitative Groups East Africa lending during the year in a number of project Meeting on Uganda July, 1969 Paris IBRD areas-in particular its lending for livestock, fish- Meeting on eries and forestry development and for industrial Keeting February,970 Paris IBR projects (see above pp. 9-13 and 21-24)-and also Tanzania Aprilon 170 Geneva IBRD by the economic analysis undertaken during the Korea April, 1970 Geneva IBRD Morocco October, 1976 Paris IBRD year of national economies, vital sectors of activity Morosio October, 1969 Paris IBRD ero ainleoois ia etr fatvt Tunisia October,1969 Paris IBRD and other specialized topics. Efforts to meet the 3.Other second objective included discussions with other Ceylon February,1970 Paris IBRD international organizations concerned with com- B. Other Aid Coordlination Groups in which the Bank Participates modity production and consideration by the Bank Guyana September, 1969 Georgetown Guyana Group of the possibilities for its participation in Honduras March, 1970 Tegucigalpa Honduras Indonesia December,1969 Amsterdam Netherlands programs of research into key aspects of agricul- April, 1970 Rotterdam Netherlands tural commodity production, and into new types April, 19701 Paris France Turkey March, 1970 Paris OECD of end use. As to the third main objective, Bank/ Marc, 1970 Paris OECD SeDr Rnsohedlgee M yti, 97 Paris OECD IDA staff members participated as observers in the meetings of major commodity groups, furnish- ing them with Bank commodity studies and other relevant material and discussing with them where Pearson Commission Report appropriate opportunities for cooperation in fi- The Report of the Commission on International nancing specific projects. Arrangements were also Development, sponsored by but independent of made to receive authoritative data relating to the Bank, was presented to the President of the problems of market access. Bank on September 15, 1969, by the Commission's Chairman, Mr. Lester B. Pearson, former Prime Economic Studies Minister of Canada. The Report, "Partners in Economic analysis is central to the effectiveness Development," surveyed in detail the past per- of the Bank Group's operational work. Studies formance and future prospects of the world de- connected with the economics of individual proj- velopment assistance effort; its publication in nine ects, with whole sectors of activity, and with the languages has stimulated wide-ranging discussion overall prospects and problems of national econo- in official and other circles throughout the world, mies, are major determinants of the pattern of and has been followed by a number of new policy Bank Group lending programs. The Bank's eco- commitments by governments. nomic work also includes the preparation of Apart from its historical and analytical survey papers dealing with the probleins and prospects of development, the Report contained a large of major commodities, with international devel- number of specific recommendations for policy opment finance issues, with improvement of ap- .actions by both donors and recipients of assist- praisal techniques and methods used in the ance. The President of the Bank has submitted to Group's activities, and with subjects of special the Executive Directors analytical memoranda on concern such as population and urbanization. .the recommendations directly affecting the Bank The Bank's economic staff may undertake spe- Group's policies and operations. The review of cific studies at the request of other international these recommendations by the Executive Direc- organizations. During the year under review, Bank tors has commenced and is continuing. staff worked on a study of "Possible Improve- ments in Techniques of Lending"-a survey of the current terms of public international develop- Commodity Study- ment lending (together with proposals for pos- lmplementation of Decisions sible improvements) requested by the United The Bank Group took a number of steps during Nations Conference on Trade and Development the year to implement the decisions of the Execu- (UNCTAD). The Trade and Development Board tive Directors regarding the role the Group could of UNCTAD at its Ninth Session, on September feasibly play in helping to solve problems related 12, 1969, adopted a Resolution, based on the con- to the stabilization of prices of primary products. clusions of the Intergovernmental Group, which 31 invited the Bank "to consider working out ar- appropriate to officially sponsored groups study- rangements for supplementary finance and, if ap- ing development problems. propriate, to consider introducing them." This The Bank expects the individual items for which matter is under continuing study, and a progress information is supplied to continue to grow sub- report will be made to the Trade and Develop- stantially, and the overall picture they provide ment Board on it at the appropriate time after to increase in utility as the system becomes still review by the Executive Directors. more comprehensive. (See also Part II, pp. 49-53.) Selected studies prepared by the Bank's staff International Investment Insurance Proposals have been published in the series of "World Bank Staff Occasional Papers." Three Occasional Papers Discussions were resumed during the latter part were published during the year under review: of the year regarding the proposal for the creation "Automotive Industries in Developing Countries" of an International Investment Insurance Agency.: by Jack Baranson; "Manufacture of Heavy Electri- A number of major issues were still under con- cal Equipment in Developing Countries" byAyhan sideration by the Executive Directors at the end Cilingiroglu; and "Techniques of Project Appraisal of the fiscal year. under Uncertainty" by Shlomo Reutlinger. International Centre for Settlement of The Bank is the world's chief repository of in- Investment Disputes (ICSID) formation on the external debt of developing countries. Comprehensive information is col- The Convention on the Settlement of Invest- lected from debtor member countries directly by ment Disputes between States and Nationals of the Bank, and from creditor country members of Other States, which was sponsored by the Bank OECD's Development Assistance Committee and came into effect in October 1966, created jointly by the Bank and the OECD under the two ICSID as a forum for conciliation and/or arbitra- organizations' Expanded Reporting System. tion of international investment disputes at the Drhinformation request of the parties involved. By the end of Durinsthe yaro udebtr revntriew, hex fiscal 1970, 57 states had become parties to the Itforequest fromvdebt coultries wetails, rexte d Convention; a further seven states had signed but It formerly covered complete details, regularly no.e'rtfe. teCnvnin updated, regarding the status of existing public not yet ratified the Convention. or publicly guaranteed debt, together with regu- During the year under review, ICSID success- lar reports on all new such debts incurred. The fully completed a pilot study for the collection, classification and eventual dissemination of na- Bank's requirements have now been expanded to toas islation and inteationaliagreement include annual aggregate reports on non-guar- tional legislation and international agreements anteed private debt and on grants received. Thus relating to foreign investments. The Centre's own the constant review maintained of every public Annual Report provides details of ICSID's mem- debt incurred by member countries (involving bership and affairs. more than 20,000 individual active items, any change in which is regularly added to existing Borrowings and Finance information) is now supplemented by aggregate World Capital Markets' information on the other major types of capital flows into the developing countries. Information -The World Bank's borrowings need to be viewed against the background of conditions in supplied by the debtor is checked against credi- the capital markets of the world. The Bank relies tors' reports covering the status of each individual oftiial oanand ran andcoutrv ggrgate of on sales of Its obligations In these markets for official loan and grant and country aggregates of the bulk of the funds it lends to its developing officially guaranteed private credits, member countries; market conditions conse- This system provides the Bank with a valuable quently have an influence on the amount of funds source of information for country economic anal- available to the Bank for lending, and the rate of ysis. The system naturally depends on the accu- interest it charges on its loans in member coun- racy of countries' reports, but these can often be tries. Moreover, movements in world capital mar- cross-checked by comparing debtors' and cred- kets influence not only the Bank's own operations itors' figures. The Bank makes every effort to help during the year, but also the ability of a number debtor countries improve their debt management, of developing countries to undertake external accounting and reporting systems; over a dozen visits have been made to member countries for this purpose during the past year. 'The figures in this section refer onry to long-term bor- this purpos during thepast year.rowings undertakeni by external boIrrowers on loreign Detai!ed information is regarded as strictly con- and international markets in calendar 7969. For the pur- fidential by the Bank, but basic data on debt pose of this section, "long-term" borrowing is taken to include any external borrowing with a maturity of more trends and aggregates are made available where than one year. 32 borrowings on these markets. Consideration of on these markets in calendar 1969, with compar- capital market conditions, and especially of move- ative figures for earlier years, are shown in Annex ments in borrowing costs, is therefore of direct Table 11. relevance to the development effort. The decline in total sales of long-term obliga- In calendar 1969. total long-term foreign and tions on world capital markets in 1969 occurred international issues by all external borrowers on within the framework of a further general rise in world capital markets declined for the first time borrowing costs during that year for all types of in six years to an aggregate of $6,694 million issuers. The movement has broadly continued equivalent. This was the second highest annual through the first six months of calendar 1970, volume recorded, but represented a fall of 9% as indicated in Annex Table 12. below the record $7,371 million equivalent re- In the United States market, yields on new is- -ported in 1968. All major categories of issuers sues of high-grade, long-term domestic corporate except those in the industrialized countries bor- obligations reached a new peak in December rowed less on the foreign and international mar- 1969. After declining in early 1970, a further up- kets than they did in 1968. Details of offerings ward surge began in February and, with a brief WORLD BANK Source and Application of Funds Fiscal Year Ended June 30, 1970 (Million US dollars) Source Borrowings New and refunding issues.. .. 735 Delivery of bonds sold in prior years .... 98 Increase in debt outstanding as a result of currency revaluation 90 923 ~4 Repayments of loans Sales and calls on participations in loans... 2% 13% Capital subscriptions used.. 39 Net income From operations ...... . 213 Gain from currency revaluation--net 3 216 1702 Application Loan disbursements. . 772 Increase in loans outstanding as a result of currency revaluation -net... 96 868S Debt retirement....1 M % Payment on IDA transfer 2% Other. . . . . 2 Total Application ..... 1360 Balance-Increase in cash and liquid securities 1702 33 Ethiopia-Telecommunications. Customers waiting to make telephone calls at the pay station at Gondar. The operator on the left makes the necessary connection, indicates the booth to be used and collects the charge. Four World Bank loans amounting to $13.7 million have helped to develop the Ethiopian telecomm unications system- the first loan was rade 19 years ago. interruption, continued to a new record level of 1,406 million in 1968. Borrowings by the World over 9toc in mid-May. Bank amounted to $713 million of the calendar Similar, though less dramatic, movements in 1969 total, compared to $1,240 million in calen- the cost of long-term borrowings occurred in dar 1968. (See also below pp. 35-36.) other major capital markets, and in markets for Europe was the principal market for long-term long-term foreign and international obligations, external borrowings in 1969 for the fourth con- in the German market, which was the largest secutive year. Sales of obligations in this market source of foreign issues (excluding international totaled $4,976 million. Within Europe, the German issues) after the United States during the year, the market was the largest supplier of funds, absorb- costs to corporate issuers increased during 1969 log foreign issues amounting to the equivalent of by more than a full percentage point, to over $1,112 million. In addition, international issues 7D/2 Os and then rose further to the 9d level in the denominated in Deutsche mark and sold on the first half of 1970. Long-term rates in the markets Eurobond market totaled $966 million equivalent, for foreign and international issues denominated 31 % higher than in the previous year. in US dollars and Deutsche mark also increased substantially in the year, with rates on issues de- Issuers located in the industrialized countries nominated in Deutsche mark rising proportion- sold long-term obligations totaling $3,790 million ately faster, to a point where the spread between in Europe during 1969, including the equivalent yields on issues denominated in US dollars and of $974 million of foreign issues sold on the Ger- Deutsche mark had virtually disappeared. man, Swiss, B critish, an Belgian markets; and the Issuers in the industrialized countries under- equivalent of $2,816 million sold internationally took long-term borrowings totaling $5,259 million on the Eurobond market. Total European sales by equivalent during 1969 79% of the year's total this class of issuers in 1969 were nevertheless $75 and an increase of $128 million over 1968. The million below similar sales in 1968. increase in such borrowings was, however, the United States corporations and their affiliates smallest in six years; a $635 million rise in issues were the largest borrowers in Europe, but tr sold by borrowers located in Europe (to a total of long-term issues, totaling $1,436 million in the $1,601 million) was largely offset by a decrease form of straight debt and convertible bonds, rep- of $510 million in issues sold by borrowers located resented a decline of 35199 compared with 1968. in other industrialized countries (to a total of Canada, with borrowings equivalent to $315 mil- $3,658 million). lion, of which issues totaling the equivalent of Long-term borrowings on world capital markets $184 million were sold internationally and $131 by issuers in developing countries and by inter- million in Germany, was the second largest bor- national developmnent institutions fell in 1969, rower in Europe in 1969. Other important borrow- both in absolute amount and as a proportion of ers in the European markets in the year were the year's overall total. Such borrowings in 1969 issuers in the United Kingdom withi sales totaling amounted to $1,330 million equivalent (about $264 million equivalent;- Japan, $261 million; 20% of all issues sold), compared with $2,046 France, $241 million; Germany, $229 million; the million or 28% of total sales in 1968. The develop- Netherlands, $179 million; and Italy, $169 million. ing countries borrowed $465 million in 1969, a All these borrowings showed large increases over decrease of $175 million from the previous year, the previous year, with the exception of those of and borrowings by international development in- issuers in the Netherlands, which remained vir- stitutions dropped to $865 million compared with tually unchanged. 34 The developing countries undertook long-term equivalent, compared with the previous fiscal borrowings totaling $216 million in Europe in year's record level of $1,224 million equivalent. 1969. Argentina borrowed the equivalent of $60 A further $172.4 million was, however, added in million, made up of public offerings in Germany 1970 to the funds available to the Bank for lend- and Switzerland and two offerings internationally. ing, as a result of unusually large sales of items Official agencies of the Government of Mexico from the Bank's portfolio of outstanding loans: borrowed $61 million in the international market such sales had totaled only $35 million in fiscal in Europe. Israeli corporations sold a total of $35 1969. (See also below, and page 37.) The Bank million in Luxembourg and internationally in Eu- did not borrow in the United States or Switzerland rope during the calendar year. (both traditionally substantial suppliers of bor- The United States market supplied a total of rowed funds) during fiscal 1970, and undertook $1,717 million to long-term foreign borrowers new money borrowings in Germany of DM 150 during 1969. By far the bulk of the year's borrow- million as compared to DM 1,600 million in fiscal ings in this market was undertaken by issuers in 1969. Canada, who placed obligations amounting to The $735 million borrowed by the Bank in fiscal $1,456 million, an increase of $195 million over 1970 included $362 million equivalent of obliga- 1968. The remainder of the total was made up by tions sold to raise new funds, and $373 million relatively small borrowings by affiliates of one equivalent of refunding obligations that replaced German and one Japanese corporation (together items that matured in the period. In fiscal 1969, amounting to $12 million), and by a number of new borrowings had totaled $851 million equiva- developing countries, whose combined borrow- lent, and refunding obligations sold had also ings in the US market totaled $250 million dur- amounted to $373 million equivalent. ing the year, compared with $290 million in 1968. The principal supplier of new borrowed funds Israel was the largest such borrower, with issues in fiscal 1970 was The Bank of Japan, which lent a amounting to $151 million. Other developing total of Y 72,000 million (US$200 million equiva- countries whose issuers placed obligations in the lent) to the World Bank. These were the 'World US market during the year included Argentina Bank's first Yen borrowings. When announcing ($51 million), Brazil ($1 million), Colombia ($1.1 the loans, The Bank of Japan stated that it had de- million), Mexico ($26 million), the Philippines cided to extend them on the basis of recent de- ($1 l million) and Venezuela ($8.2 million). velopments in Japan's balance of payments which As already noted, sales of long-term obligations had added materially to the country's monetary in world capital markets by international develop- reserves. The Bank of Japan added that further ment institutions totaled $865 million in 1969. factors influencing its decision regarding the loans The Asian Development Bank floated its first bond fcrs inlen its decision rgardi the dloan issu durng tis ear,a DM60 illin pulic were 'the great contribution toward the develop- issue during this year, a DM 60 million public ment of the Japanese economy" made by the offering of 7% bonds in the international market World Bank, and a desire on the part of Japan to in Europe. The Inter-American Development Bank help the World Bank's activities and thereby sold issues equivalent to $137 million in the year, stren then international monetary cooperation" tapping the markets in Austria, Germany and Italy, g and the international market in Europe. In the Lending byThe Bankof Japan to theWorld Bank previous year, the IDB had sold issues equivalent was divided into two separate loans of Y 36,000 to $166 million. Sales by the World Bank again million each, in February and March 1970. Terms represented a major proportion of all borrowings were favorable by comparison with those gener- for development financing; a total of S713 million ally prevailing in world capital markets and in- was raised in calendar 1969 compared with 51,240 cluded interest at a rate of 7.14% a year and million in calendar 1968. The Bank's calendar 1969 repayments of principal serially over the period borrowings were made up of a public offering in 1973-75. Germany of DM 250 million (US$62.5 million In addition to supplying the equivalent of $200 equivalent at the time of offering), private place- million in new funds during the year, The Bank ments in Germany totaling DM 1,130 million of Japan also supplemented the World Bank's (US$282.5 million equivalent at the time of place- lendable resources by purchasing more than $160 ment) and sales of $367.7 million of Two-Year million of the outstanding debt of the World US Dollar Bonds to central banks, other govern- Bank's Japanese borrowers (see below, page 37). ment accounts and international organizations. In Germany, the Bank raised new funds totaling DM150 million through placement on Julyl,1969, The Bank's Borrowings of an issue of 6% Bonds due over the 1972-81 The Bank's borrowings in its 1970 fiscal year period with the Deutsche Genossenschaftkasse. (July 1, 1969-June 30, 1970) totaled $735 million Central banks and other governmental institutions 35 in 61 countries, together with international organi- Increase in Capital: Bank zations, supplied the remainder of new funds On January 6, 1970, the Executive Directors of raised in the year. The Bank placed with these the Bank submitted to the Board of Governors a institutions two issues of Two-Year US Dollar report and a draft Resolution providing for in- Bonds totaling $349.5 million, made up of a $175 creases in the subscriptions of 75 of the Bank's million issue bearing an interest rate of 8%, and member countries corresponding to the selective a $174.5 million issue at 8 8%. $225 million of the element of the increases in their IMF quotas re- total replaced two maturing issues and $124.5 sulting from the Fund's Fifth General Review of million was added to the resources of the Bank. member countries' quotas. The outstanding funded debt of the Bank was To accommodate the recommended increases increased during the year by the delivery to in- in subscriptions and to provide the Bank with vestors of $97.6 million of bonds sold in previous sufficient authorized capital for new members'. years on a delayed delivery basis. The US dollar subscriptions and future increases in individual equivalent of the principal amount of outstanding members' subscriptions, the Executive Directors Bank debt was raised by a further $90.3 million as concurrently submitted to the Board of Governors a result of the upward revaluation of the Deutsche a report and a draft Resolution authorizing an in- mark. crease of $3,000 million in the authorized capital A total of S377 million equivalent of debt ma- stock of the Bank. tured in fiscal 1970. Virtually the whole of this Voting on the two Bank Resolutions was still debt was held by the Deutsche Bundesbank and in process at the end of the fiscal year. The Reso- by other central banks and government institu- lutions provide, however, as does the parallel tions located outside the United States. The Bank Fund Resolution, that no increase shall become ^. .S1. . | r ~~~effeciepo oOtbr3 90 also retired a further $59 million equivalent of ective prior to October 30, 1970. debt by means of sinking fund and purchase fund operations during the year. Other Financial Operations: Bank At June 30, 1970, the Bank's outstanding funded Loans held by the Bank on June 30, 1970, net of debt stood at $4,568 million equivalent an in- exchange adjustments and including those not yet crease of $487 million during the year. Holdings effective, totaled $9,868 million, an increase of of the Bank's obligations continued to broaden in- $1,247 million in the fiscal year. Effective loans ternationally in fiscal 1970. The estimated division held totaled $8,889 million as of June 30, 1970. of holdings by investors as of June 30, 1970 was Loan disbursements amounted to $772 million, about 37% in the United States; 29% in Germany; compared with $762 million in the previous year. 6% in Switzeriland; 5% in Japan; and 4% in The cumulative total of disbursements as of June Canada. The remaining 20% is held largely by 30, 1970, amounted to $10,355 million; the un- central banks and other governmental accounts disbursed portions of loans held by the Bank was in some 75 countries. $3,905 million at the end of the fiscal year, com- The further rise in the costs of funds to all bor- pared with $3,007 million at the end of fiscal 1969. Disbursements in fiscal 1970 continued to rise rowers during the year under review was reflected D in the Bank's borrowing costs. These averaged at a slower rate than commitments. This is partly 7.69% in fiscal 1970 compared with averages of attributable to the normal procedures of placing 6.46% in fiscal 1969 and 6.17%Xo in fiscal 1968. On equipment orders and to the time consumed in August 1, 1969, the Bank increased its lending the manufacture, delivery and installation of such rate from 6 2% to 7%. The Bank's 7% lendi equipment. But the pace of disbursement on loans - rate wasmaintained through The remaink's /of the is also affected by problems of project program- rate was maintained through the remainder of the ming and management leading to delays in the fiscal year, reflecting its continuing efforts to keep placing of orders and in implementation of proj- the cost to its borrowers of its loans at as low ects. The Bank Group is increasing its efforts- a level as is compatible with the maintenance of both through the provision of funds for technical its own sound financial position. assistance in its lending operations and through The cash resources of the Bank continued to other activities designed to help borrowers im- increase in fiscal 1970. On June 30, 1970, they prove project management-to speed the process stood at $2,092 million, or some $244 million of project implementation, and hence the flow of higher than their level at the end of fiscal 1969. disbursements. The Bank's cash resources have been built up to Repayments by the Bank's borrowers were $442 meet the increase in disbursements which is ex- million in the period, including $329 million paid pected to follow the rapid recent rise in com- to the Bank and $113 million to investors who had mitments made by the Bank. purchased borrowers' obligations from the Bank. 36 Cumulative repayments as of June 30, 1970, were lated earnings and borrowings) through fiscal $3,763 million: $2,126 million to the Bank and 1970 was 3.3%. $1,637 million to purchasers of its loans. The higher level of Bank Group activity, which The year's sales of participations and of items has entailed the recruitment of large numbers of from the Bank's loan portfolio amounted to $172.4 new staff (see below, page 39), together with gen- million, the highest level in any year since fiscal eral increases in costs, raised the administrative 1964, and an increase of some $137 million over costs of the Bank and IDA to $61 million, com- such sales in fiscal 1969. The increase is almost pared with $45 million in the previous fiscal entirely attributable to the purchase of $162.5 mil- year. After deducting $16 million of management lion of portfolio items by The Bank of Japan. By fees charged to IDA (compared with $4 million June 30, 1970, the aggregate of sales of participa- charged in 1969), administrative costs of the Bank tions in loans and from loan portfolio was $2,350 amounted to S45 million compared with $41 mil- million. lion in fiscal 1969. The increased management fee During the year the Bank fully liquidated spe- charged by the Bank to IDA in fiscal 1970 resulted cial interest-bearing deposits it had made in the from a change in the basis upon which such fees Reserve Bank of India to offset temporarily part had been determined in 1968 and 1969. This of the effect on India's balance of payments of change was designed to make the fee charged to debt service payments to the Bank during the year IDA reflect more accurately the staff time taken up ended March 31, 1968. The final withdrawal, by the IDA share of total Bank/IDA operations. amounting to $8.7 million, was made in Febru- At their 1969 Annual Meeting, the Board of ary 1970; no further deposits of this nature are Governors approved a transfer of $100 million of planned. the Bank's net income for fiscal 1969 as a grant to IDA; the remaining $71 million of that year's Income and Expenditure: Bank net income was allocated to the Supplemental Re- Net income for the fiscal year was $213 mil- serve Against Losses on Loans and from Currency lion, an increase of $41.5 million compared with Devaluations. After the close of the 1970 fiscal the previous year. The main factor in this sharp year the Executive Directors allocated $113 mil- rise to a new record level of net income was a lion of net income for the period to the Sup- substantial increase in the level of the Bank's cash plemental Reserve, raising it to $1,150 million and and liquid securities accompanied by a higher total reserves to $1,442 million. The Executive level of yields on such securities. There was also Directors at the same time recommended that a an increase in interest income from loans, reflect- further $100 million be transferred to IDA as a ing increases in outstanding loans receivable and grant. the average rate of interest on such loans. Commission still charged on outstanding por- Finances: IDA tions of a fewof the Bank's earliest loans dwindled The second general replenishment of IDA's re- to about $382,000 as additional principal on these sources, providing $1,201.4 million equivalent of loans was repaid. Commission was credited to the additional funds for development credit commit- Special Reserve which amounted to $292 million ments by the Association, became effective on on June 30, 1970. July 23, 1969. To date 17 Part I countries with Gross income for the year was $504 million pledges aggregating $1,140.96 million have de- compared with $410 million the previous year. posited notifications of their acceptance of the Contributing to the increase were gains of $61 terms of the replenishment agreement. Sixteen mnillion in investment income to $149 million; of of these countries have paid in two installments $30 million in income derived from loans to $344 of their shares in it, and one country has paid in million; and of $3 million in other income to advance the third and last installment, due in No- $11 million. vember 1970. A further $12.1 million is being sup- Expenses in the period totaled $291 million, $53 plied by Switzerland under a loan related to the million more than in fiscal 1969. Bond and note second replenishment agreement. One country interest and issuance costs rose for the third con- has not as yet deposited notification of accept- secutive year, reflecting increases in the Bank's ance, but is expected to do so on completion of funded debt and the rising costs of funds bor- action on pending legislation. rowed in the market. The total of these expenses New credits signed by IDA in the fiscal year in fiscal 1970 was $246 million, compared with totaled $606 million bringing the aggregate of $197 million in 1969. Taking into account the sub- credits since the start of operations to $2,822 mil- stantial amount of funds derived by the Bank lion gross on June 30, 1970. Funds available for from its paid-in capital and accumulated earn- further commitments on that date amounted to ings, the overall cost of all funds (capital, accumu- $409 million, exclusive of the $100 million which 37 the Executive Directors recommended as a trans- other IFC staff changes appear in IFC's own An- fer from the Bank's net income to IDA after the nuai Report. end of the fiscal year. It was announced in May 1970 that Mr. Irving Disbursements by IDA in the fiscal year S. Friedman would hand over later in the year his amounted to $143 million, a decrease compared duties as The Economic Adviser to the President of with the $256 million disbursed in fiscal 1969. the Bank to Professor Hollis B. Chenery of Harvard The decline is primarily attributable to the low University. Mr. Friedman will take sabbatical leave level of commitments in fiscal 1968 and early fis- from the Bank after Professor Chenery's arrival. cal 1969 when IDA was hampered by lack of A number of other staff and organizational funds. changes took place during the year. Mr. Abdel G. The rapid recent growth of IDA commitments El Emary became Special Adviser to the President and the still faster growth of developing countries' with effect from January 1, 1970; Mr. Michael L. needs for concessionary development finance of Lejeune succeeded Mr. El Emary as Director of the the kind IDA provides make it essential that the Eastern Africa Department; and Mr. Munir P. Association obtain more funds to meet the legiti- Benjenk was promoted to succeed Mr. Lejeune as mate requirements of the developing countries. Director, Europe, Middle East and North Africa On July 21, 1970, after the end of the fiscal year, Department. the Executive Directors recommended and trans- Recent rapid increases in Bank activities in the mitted to member governments for approval a Western Hemisphere and the further increases proposal for a replenishment of IDA's resources planned, together with the Bank's determination for a three-year period. The eighteen Part I coun- to ensure that proper attention is still given to the tries, three Part II countries (Ireland, Spain and needs of all the countries in the region, led to the Yugoslavia) and one non-member, Switzerland, creation as of January 1, 1970, of two new Area proposed making available a total of approxi- Departments to replace the Western Hemisphere mately $813 million per year, the first payments Department. Mr. Gerald Alter, who had been that being scheduled for November 8,1971. Itwas also Department's Director, became Director of a new agreed that the voting power of the Part I coun- South America Department; Mr. Edgar Gutierrez, tries should be adjusted so as to reflect more ac- formerly Director of the National Planning De- curately the share of each of them in the total partment in Colombia, joined the Bank as Director contributions of the Part I countries to IDA. It was of a new Central America and Caribbean De- further agreed that the Part II countries be given partment. the opportunity to make additional subscriptions A new Industrial Projects Department was set on easy terms to IDA in order to permit them to up during the year, to deal with the rising volume maintain the relative voting power of the Part II of Bank activity in this sector. The Department will countries as a group. work closely with appropriate I FC staff, and a joint Annual transfers from net income in the form Bank-IFC committee has been set up to coordi- of grants have been made by the Bank to IDA in nate the Bank Group's overall work in the field of each year since 1964; the six-year total amounts industrialization. Mr. Hans Fuchs, formerly Di- to $385 million. These transfers have been of rector of IFC's Engineering Department, was ap- sums which would otherwise have been available pointed Director of the new Bank Department in for distribution as dividends to the Bank's member October 1969. countries and which are not needed for allocation Directors were appointed during the year to the to reserves or otherwise required to be retained three Projects Departments established in fiscal in the Bank's business. After the close of the 1970 1969 to deal with new areas of lending, and new. fiscal year, the Bank's Executive Directors recom- Directors were assigned to two others. Dr. Alfred mended to the Board of Governors a further trans- Koch, formerly Secretary General of the German fer to IDA in the amount of $100 million. This Institute for Tourism Economics, joined the Bank recommendation will be considered by the Gov- in September 1969 as Director of the Tourism ernorsatthel970Annual Meeting inCopenhagen. Projects Department; Dr. Kandiah Kanagaratnam, formerly Chairman of the Family Planning and Population Board of Singapore, joined the Bank Organization and Administration in September 1969 as Director of the Population Projects Department; Mr. Robert Sadove, formerly Director of the Bank's Transportation Projects De- Staff and Department Changes partment and Acting Director of the Tourism Proj- During the year under review, Mr. William S. ects Department, was appointed Director of the Gaud succeeded Mr. Martin M. Rosen as Execu- Special Projects Department in October 1969. tive Vice President of IFC. Fuller details of this and At the same time, Mr. A. David Knox, formerly 38 Director, Public Utilities Projects Department, was appointed Director of the Transportation Projects Department, and Mr. Mervyn Weiner was promoted to become Director, Public Utilities YOUNG PROFESSIONAL PROGRAM Projects Department. Cumulative Appointments Currently in Service, Undergoing Training or Committed Recruitment Afghanistan ............... ....... 1 The activities of the Bank Group continue to Algeria .......................... 1 grow rapidly, both through sharp increases in Argentina ........................ 2 existing types of assistance to member countries, Australia ......................... 3 and through expansion into new kinds of opera- Austria .......................... 4 tional and analytical activity. The Bank is deter- Belgium .......................... 7 mined that the consequent rising overall workload Brazil ............................ 2 will not in any way diminish the high professional Canada .......................... 6 standards which have always been applied to its Chile ............................ 1 lending and other activities. The intensive pro- China ............................ 1 gram of recruitment of highly qualified new staff Colombia ........................ 1 initiated during the previous year has, therefore, Finland .......................... 1 continued in fiscal 1970. 293 professional staff France ........................... 15 members were recruited for the Bank during fiscal Germany ......................... 7 1970, compared with 208 recruited during the Greece .......................... 1 previous fiscal year. After allowing for promotions India ............................ 11 of existing staff and departures, the increase in Iran ............................ 2 professional staff between June 30, 1968 and June Ireland .......................... 1 30, 1970 was 426, an expansion of 57%. Israel ............................ 2 The recruitment program has two main objec- Italy ............................ 7 tives: to atttact to the Bank a sufficient number of Jamaica .......................... 1 new staff members of the high caliber needed to Japan ............................ 4 maintain the quality of the Bank's work at a time Lebanon ... ..................... 1 when the quantity of work undertaken is increas- Malaysia ......................... 1 ing rapidly; and to broaden the nationality base Mexico .......................... 1 of its staff. The second requirement involves Morocco ......................... 1 recruitment of staff from countries which have Netherlands .............. ........ 7 hitherto supplied few if any staff members to the New Zealand ............ ......... 2 Bank, and the consequent reduction of the pro- Nicaragua ........................ 1 portion of total staff represented by nationals of Nigeria .......................... 2 countries which have traditionally been large sup- Norway .......................... 3 pliers of staff. The success of recruitment efforts Pakistan ......................... 5 during the year in this respect is reflected by the Philippines ....................... 3 further decline in the percentage of professional Rhodesia ......................... 3 staff represented by nationals of the two largest Sierra Leone .............. ........ 1 traditional suppliers-the United Kingdom and South Africa .............. ........ 3 the United States. By the end of fiscal 1970, this Spain ............................ 4 group represented 430/. of all professional staff, Sweden .......................... 8 compared with 48.2% of a smaller total on June Switzerland ....................... 4 30, 1969, and 49.4% of a still smaller total on June Trinidad and Tobago ....... ........ 1 30, 1968. The number of nationalities represented Tunisia .......................... 1 among professional staff rose from 55 to 71 dur- Turkey ........................... 1 ing fiscal 1970. United Arab Republic ....... ....... 2 The Bank takes particular care to avoid depriv- United Kingdom ......... ......... 13 ing its member countries of key personnel who United States ............. ........ 15 may seek employment with it. In such instances Uganda ...., 1 it may offer fixed term appointments, in the belief Yugoslavia ....................... 1 that the period of service such staff undertake at Total ......................... 166 its headquarters should provide them with valu- able experience which can be put to good use when they return home. 39 As of June 30, 1970, the total staff of the Bank, ments. At the end of the year action was pending professional and other, amounted to 2,252, com- on membership in the Bank of Cambodia, Equa- prising nationals of 85 countries. torial Guinea and Malta, and on membership in The Bank's Young Professional program con- IDA of Cambodia, Malta, Trinidad and Tobago, tinued to expand its activities during the year. Uruguay, Venezuela and Southern Yemen. 94 staff members who had originally entered New members' subscriptions to the Bank and the Bank under this program have now been as- increases in three existing members' subscriptions signed to regular Bank/IDA or IFC posts. A further raised the Bank's subscribed capital from $23,- 40 Young Professionals are now in training and an 036.4 million to $23,158.8 million during fiscal additional 32 are expected to join the program 1970-an increase of $122.4 million. during the next few months. This will bring the Increases in subscriptions by two other coun- total number of Young Professionals serving the tries-Panama and Uruguay-totaling a further Bank Group to 166 from 47 countries as shown $21.7 million were pending at the end of the year. in the table on page 39. Executive Directors During the fiscal year there were several Office Facilities changes among the Executive Directors. Mr. Covey During the year, the Bank completed occupa- T. Oliver, Executive Director for the United States tion of the recently constructed building which since November 1968, resigned on November 3, forms part of its headquarters in Washington. The 1969, and was succeeded on November 4, 1969, European Office moved to a newly constructed by Mr. Robert E. Wieczorowski. Mr. E. W. Maude, building, at 66 Avenue d'lena, Paris, which was Executive Director for the United Kingdom since formally opened on May 20, 1970. August 1967, resigned on October 21, 1969, and was succeeded on November 7, 1969, by Mr. Derek J. Mitchell. Dr. Ernst vom Hofe, Executive Director for Germany since May 1968, resigned Membership and Executive Directors on January 31, 1970, and was succeeded on Febru- ary 1, 1970, by Dr. Wilhelm Hanemann. Mr. S. Membership Jagannathan, Executive Director for India since March 1968, resigned on June 15, 1970, and was The membership of the Bank rose from 110 to succeeded on June 23, 1970, by Mr. S. R. Sen. 113 governments during fiscal 1970. Swaziland Mr. Hideo Suzuki (Japan), Executive Director for joined the Bank in September 1969, Southern Burma, Ceylon, Japan, Nepal and Thailand since Yemen joined in October and the Yemen Arab November 1966, and also for Singapore since Republic in May 1970. Swaziland and the Yemen 1968, resigned on June 15, 1970. Mr. Seitaro Arab Republic also became members of IDA; Hattori was elected to succeed him with effect Guinea, already a member of the Bank, joined from June 16, 1970. IDA in September 1969. IDA's membership thus increased during the year from 102 to 105 govern- Audit Committee An Audit Committee, made up of five Executive Directors designated on the basis of seniority of Njw Members'C55 usits -g gX EF; 0000gg;ti service, was established on May 5,1970. The Coim- (Milliorisof- 000>\ US doS=d}llars)4 i 0- mittee is responsible, under its terms of reference, Count4ik ;X;S02 00>AEmontJ r tifor the nomination to the Executive Directors of :Swaziland ;0 1;0ut0i; W;; j; -L0f000>\00 000 06A400 a firm of auditors to conduct the annual audits of Southern Yemen 0 23. 0 00< X 00f;00000t 00 iisi00000 the accounts of the Bank, IDA and IFC; to discuss ti;;Xd!SYemnen Arayb Repub>izlic 0-;iE000200j008.50 with the auditors the scope of their examination; tal 38.4 and to review the Financial Statements and the Auditors' Opinion. The Committee will also con- Increased Sbscriptionssuit with the auditors on the most effective sys- Countryt::0t0tt0k ';0rom To Amoutd tems of internal controls over the Bank Group's Democratic RepubicH;7 ::7: :7:expenditures. The Bank Group's auditors have SStoF:if tXhe Congo 6t;tS; o0.0: 096.tt0 36.a 20 traditionally been chosen from among private, 0: $S0NiiVgDeSriia 500 0 66.7 .1Q06.700 4000:Z.Q;00; 0 independent, internationally established firms of J 32.0000: t00)t000.0000000 0000400 ; 0000040;.0i 8.0 accountants, and this will continue to be the prac- Todktal a;; 00X0000|9X 00e4.o;X000f; tice. The Financial Statements and the Auditors' Opinions are reviewed by the Executive Directors before subm-ission to the Board of Governors. 40 PART II x - :t~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4 4| PART 11 TRENDS AND OUTLOOK IN DEVELOPMENT AND DEVELOPMENT FINANCE Recent Trends in Trade and Growth The share of developing countries in world ex- ports declined slightly in 1969, from 18.5% to of the Developing Countries 17.7%, and accounted for somewhat more than 40% of all exports of primarv products and 6% of Recent Trends in Trade of all manufactured exports. An analysis of world Developing Countries trade by origin and destination (see Annex Table World trade in 1969 recorded an impressive in- 2) confirms the prevailing trends of the past dec- crease of 13% by value, surpassing even the high ade: the expansion of developed countries' ex- rates of growth previously experienced in 1964 ports has been absorbed by the developed coun- and 1968. The exports of the developed countries tries themselves; the trade flow of developing increased by 15%. The developing countries, countries is increasingly directed toward the devel- whose rate of trade expansion has typically been oped countries; and the proportion of developing slower than that of the developed countries, at- countries' exports to other developing countries tained a 9% rate of export growth during the year has been gradually shrinking. Market economy de- (compared with almost 10% in 1968-see text veloped countries import about three-fourths of table, page 44). Reflecting these developments, the exports of developing countries, and the pro- total world exports (including those of centrally portion of developing countries' trade represented planned countries) achieved a level of $270 billion by exports to other developing countries has been in 1969, of which $48 billion represented the ex- reduced (from 21.5% in 1961-65 to 19.5% in ports of the developing countries. If present indi- 1969). This is particularly true of Asia and Africa, cations are borne out, 1970 may prove to be a where regional trade declined from 23% and 7% third successive year of noteworthy expansion in of their total trade in 1961-65, to 20% and 6% the export trade of the developing countries. This respectively in 1969. Only in the case of Latin expansion has been related to the high levels of America have exports toward other developing economic activity in developed countries, which countries increased (from 18% to 20%), reflecting have in turn been reflected in the higher prices for an expansion of trade within the region (from 8% many primary commodities experienced in 1969. to 12%). Apart from the removal of trade barriers in the developed countries and the grant of non-recipro- Singapore-Ports. Loading rubber at the Port of cal preferences to exports of manufactures and Singapore. At the Port of Singapore World Bank finance semi-manufactures from the developing coun- is assisting the construction of additional deep-water tries, another possible way of accelerating the ex- berths, new plant yard and workshop, the provision of additional floating craft and cargo-handling equipment port trade of the low-income countries, as noted and the provision of data processing equipment. by the Pearson Commission, is to expand trade 43 among these countries themselves. The experience beginning in the last quarter of 1969, following of regional trade arrangements suggests that the widespread frost damage in Brazil; and a short- prospects for trade expansion are best between term recovery in rubber prices and a sharp rise in countries which are geographically close to each the prices of non-ferrous metals, reflecting in both other and linked by good communications net- cases mainly a sudden upsurge in demand. Move- works, rather than between countries which form ments in the prices of vegetable oils and oil seeds parts of wider regions, or between different re- were notably divergent, increasing for soft oils but gions. For example, intra-regional trade among the declining for lauric oils (coconut and palm kernel). Latin American Free Trade Association (LAFTA) The index rose further in the first half of 1970 (see countries in the 1960s has not exceeded the level text table and chart, page 45) as prices of some reached in the mid-1950s, before the creation of commodities continued to rise (notably those of the Association. i ntra-regional trade rose sharply, coffee, copper, lead, tin and vegetable fats and oils). on the other hand, among the Central American Economic factors helping commodity price Common Market countries, from 7% of their total increases in 1969 included generally rising price exports in 1960 to 25% in 1967; such trade ac- levels in the United States and the strong eco- counted for 18% of the East African Community's nomic expansion in Europe and Japan. Never- total exports in 1965-67, marginally above the theless, many countries have been unable to profit level in 1960-62. Manufactured products have a from these developments because a number of dominant position in the intra-regional trade of commodities which figure importantly in their both these regions. trade have continued to face weakening markets. Trade expansion has been sustained, over the Prices of rice have been drifting downward from past year, by rising prices. The World Bank main- their unusually high levels; those of wool and hard tains an index of commodity prices, based on price fibers have been particularly weak in recent pe- quotations for 38 primary commodities which ac- riods. Prices of tea, iron ore and manganese ore count for three-quarters of the total exports of the have continued to decline for a decade now; cot- developing countries. The index reached a ten- ton prices on the other hand, although lower than year high in 1969 of 107 (1960-62 = 100) if petro- in 1968, are generally being well maintained. leum exports are included, and of 118 excluding The behavior of commodity prices in 1969 was petroleum. Factors which contributed to this situ- reflected in a continuation of the gradual improve- ation included a continuation of the four-year rise ment in the terms of trade of the developing coun- in cocoa prices, which reached a record high for tries which has been registered in most years since the decade in 1969; the negotiation of the 1968 1962. The regional impact of this favorable de- International Sugar Agreement, which came into velopment was uneven, however, owing to the effect in January 1969; an increase in coffee prices geographical concentration of production of the 196i0 1961 1952 1963X 9 19 0 1967 1968 i 9 Primary Products2.56.2 58.0 59.7 65.0 7. 37 7.1 7. 45 9. Mauatrs6. 73. 79. 86.3 988 1<0997 122.5 31.2l0X);lS0 10. 1760 i Develo 0\: 00$0tfspinig; ountries .27U0-10)00j.4 27.7 29.1 31.5i 34.60 36.5 38.78 40.1X 44.1 48.28 $S0; 0 CQ 0i0;00017 Manufactures.3.8 4.+0 4.3: 4.9 52t 6. 7.600 8. 9,7 11.4t;0 ; Xfu DevelopedCutris .85.0mio 90.300 94.9: 0 103.6 117.3 128.2 1 149.2 16. 193.00 Manufactures.100~9 101 10 08 0 0 0 0 0 1 Develping countis(900 . 3 8 8 8 1 8 1 9 1 9 'Incluf ;0X, w; D 0des 0 centr ally 5 plaonedconries;nlsa incfludesC A unallocated S ag d miscellaneous yrodufctXst -2 x .,. des0 refne metls wh000000S;X00oich are0\009 includ amon anf actures.i000000 j:0 0:ff,00090; 0i;;00:0 INDEX OF SELECTED COMMODITY PRICES (Price Index 1960-62=100) 1801 I . 180 .160 . . ,< it 76 160 Metals and Ores 140 140 120 - Food A , Total index (Excluding Petroleum) - , 120 a Inldex .00 - Timber, Textiles, and Fishmeal (Iicluding Petroleum) 100 ^^ --- -----'- - ,, Agricultural Non-Food a _ - - _ Q 80' - I1 I 80 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Ist Quarter commodities which were the main contributors Recent Trends in Growth to the increase in prices-coffee, cocoa and non- in Developing Countries ferrous metals. Consequently, Latin America and Growth in developing countries, measured in Africa experienced conspicuously favorable terms Grent in terms, rosecountries,emeasue in of trade, whereas those for Asia, which had been than in 1968 and previous years, both in overall declining throughout the past decade, failed to and per capita terms. Expansion in real terms has, however, continued to be held back by the per- sistent rise in price levels. Preliminary and in- INDEX OF SELECTED COMMODITY PRICES complete data from 74 countries indicate an Tntai-62 = 100) Ttl AicMeasaverage 6.7% rate of growth in 1969, an improve- Index index ral d NAn- and Others' ment on the 5.9% recorded in 1968 and the 5.1% (Incl. Pet.) (Excl. Pet.) Food Ores average for the years 1961-1965. With population 1960 . .. 104 104 104 108 102 97 growth holding steady at 2.5% annually, the per 1961 99 99 98 98 100 100 capita increase is estimated at 4.1% for 1969, as 4 962 .... 91 97 98 94 98 102 cpt nraei siae t41Oofr16,a 1963 . 101 104 116 93 98 99 compared with increases of 3.3% in the previous 1964 . 104 110 119 94 127 98 year and 2.5% in the 1961-1965 period. As the 1965 . 103 111 107 94 151 106 average price level is estimated to have risen by 1966... 104 113 109 92 163 106 close to 3% for the world as a whole, expansion 1968 . 101 108 111 88 138 110 in real terms was probably held back to 3.5-4% 1969... 107 118 121 95 156 115 overall and to somewhat over 1% on a per capita 1970 istquarter 111 124 128 96 172 116 basis. The developing world fared well as com- 'Timber, textiles and fishmeal. pared with industrialized countries, whose GDP Source: World Bank. increase of 4.9% in 1969 was below the 5.4% achieved in 1968 and the 5.1% average over the 1961-1965 period. On a per capita basis, growth in show much change. The long-term decline in industrialized countries was about the same as for prices of products like tea, iron ore and manganese developing countries-4% in 1969, down from ore may have been partly responsible for this 4.4% in 1968 but little changed from previous diverse behavior. years. These trends are shown in Annex Table 1. 45 As in past years, growth was not uniform in the flow of net official financial resources1 has 1969, reflecting a wide range of economic and increased from about $3.3 billion to almost $7.3 population changes in different areas. The highest billion; most of this (well over 90°JO in most years) rate of growth was registered by the East Asian is official development assistance. The total net countries, with a sharp rise of 10% in 1969, com- flow of resources from all sources, official and pri- pared with that of 7.8% registered by these coun- vate, has more than doubled-from a level of tries in 1968 and an annual average rate of growth about $6.1 billion in 1956 to over $13 billion in of 5.5% over the 1961-1965 period. Despite an 1969-an average compound rate of growth of above average rate of population growth (of about 6% a year, somewhat less than the average 2.7%), East Asia also showed the highest rate of rate of growth of the GNP of the DAC countries. GDP increase on a per capita basis-7.1%, com- Preliminary estimates for 1969 indicate that there pared with 4.9% in 1968 and a 2.7% annual aver- was an increase in total flows of about $100 mil- age over the 1961-1965 period. A high rate of lion as compared with 1968. growth was also registered by the Middle Eastern There have been important changes in both the economies, amounting to 8.7% overall and 5.9% composition of the total flow and its sources since per capita. This represented a reduction from the 1956. In that year, and throughout most of the 9.2% and 6.3% of the preceding year, but a further period since then, the United States provided advance from the previous 1961-1965 average about one half, the United Kingdom about 10%, (7.4% and 4.4%). Recovering from a contraction and France between 15% and 20% of the re- in 1967-1968, Southern European economies re- corded total net flow. More recently, and particu- ported a 7.3% advance in 1969; as their popula- larly since 1966, the relative role of these major tion grew least among developing countries donor countries has diminished. Together, their (1.5%), their per capita growth (5.7%) was com- contributions had, by 1969, fallen from an histori- paratively high. In other areas, overall rates of cal level of 75-80% to about 55% of total net growth were 6.4% for the Western Hemisphere, flows from all DAC countries, although flows from 6.3% for South Asia, and 4.1% for Africa. Wlith the both France and the United States (until 1969) increase in population ranging from a 3.0% high contin6ed to increase in absolute terms. Overall in the Western Hemisphere to a 2.4%1o low in growth in the flow of resources has been main- Africa, per capita expansion was correspondingly tained by rapid expansion in the capital exports held back to 3.3% in the Western Hemisphere, of a number of other countries. The most im- 2.7% in South Asia and 1.7% in Africa. By far the portant of these in total volume have been Japan greater part of the growth continued to be ac- and the Federal Republic of Germany; total net counted for by industrial activity, with agriculture flow from these two countries combined increased still advancing at a slower pace. Adjusted for price from about $550 million in 1956 to more than increases, it appears that a number of countries $3.2 billion in 1969. Even more dramatic increases actually experienced a contraction in their GDP in have been registered in the flows from several of real terms and several others barely held the levels the smaller European countries, notably Austria, reached through their earlier advances; this was more than counterbalanced, however, taking the 'Net flow as used in this Report refers to gross disburse- ments minus amortization of principal. Further subtrac- developing countries as a whole, by particularly ton of payments of interest yields what is commonly rapid expansion in other countries in 1969. referred to as net transfer. The relationship among these concepts for DAC official bilateral flows and flows from the IBRD and IDA ior several recent years is illustrated be- low (comparable data ior private flows are not available) The Flow of External Financial Million US dollars' Resources to Developing Countries 1965 1966 1967 19T68S9568 DAC Official Bilateral The flow of financial resources from the major Gross Flow ......... 6,605 6,949 7,248 7,548 28,350 capital-exporting countries to developing coun- Net Flow ..... 58732 6,1776 6,828 ,971 3,284 tries and international development institutions Interest Receipts. . 448 491 514 612 2,065 has generally risen since the early 1950s, when Net Transfer ...... 5,425 5,685 5,906 5,985 23,001 global data on these flows began to be collected. IBRD and IDA Occasional reductions from one year to the next Gross Flow ...... . 881 1,054 1,131 1,004 4,070 have usually been followed by a quick recovery Amortization ....... 314 336 359 371 1,380 Net Flow......567 718 772 633 2,690 so that the trend has been one of long-range Interest Receipts ... 254 277 303 335 1,165 growth. The first year covered by the detailed Net Transfer ....... 313 441 469 302 1,525 statistics on aid and capital movements prepared Note: Data for DAC bilateral flows do not reflect the most recent revisions in- regularly by the OECD was 1956. Since that year, corporated into Annex Tabte 4. 46 Denmark, Norway and Sweden, Total flows from Paraguay-Cattle. Rounding up cattle on the Estancia these four countries amounted to about $520 mil- Riacho Negro, in the Chaco region. World Bank lion in 1969, nearly twenty times the $28 million loans and IDA creclits are helping livestock developmentprograms in more than 20 countries in which they provided in 1956. For the most part, Latin America anclAirica. this growth is a reflection of decisions on the part of the governments of these countries to increase their assistance to the developing countries. The largest single component of this flow has been From the point of view of the developing coun- private direct investment. During most of the dec- tries, the composition and terms of the capital ade 1956-65, direct investment (including rein- available to them are of prime importance. From vested earnings) accounted for between $1.5 and 1956 through 1964, the total net flow of private S2 billion each year, or roughly two-thirds of capital to developing countries and multilateral total private flows. In 1965 net direct investment institutions hovered around $3 billion per year, climbed to more than $2.5 billion, and after de- although it reached a peak of $3.8 billion in 1957 clining to about $2.2 billion in 1966-67 reached .and fell to about $2.6 billion per year in 1962-63. almost $3 billion in 1968. Preliminary estimates of During most of the same period, total flows from the OECD Secretariat indicate that the accumu- official sources increased steadily, rising from lated book value of total foreign direct investment .about $3.3 billion in 1956 to $6 billion per year in in the developing countries at the end of 1966 the early 1960s, and remaining at about that level stood at about $30 billion. Net additional flows until 1965. As a result, the private share of total since that time increased the total to a level of flow fell from 50% in 1956 to some 30-35%/o in some $37-38 billion by the end of 1969. the period 1962-64. Annex Table 4 illustrates Reverse flows of funds back to the developed recent developments. While the net flow of of- countries on account of this sizable total of di- ficial resources has resumed a gradual increase rect investment have naturally been considerable. (about 4% a year) private flows have increased Consolidated balance of payments accounts of by almost 90% since 1964 and again are approach- the DAC countries indicate that during 1964-67 ing a level of 50% of the total. these countries received an annual average of The flow of private capital into the developing about $5.8 billion in income from their invest- countries continues to be of major significance. ments in all developing countries. Of this amount, 47 roughly $500 million per year consisted of interest past few years, about four-fifths of the total net on official loans outstanding, and an estimated flow recorded has come from France, Germany, $700-900 million of interest on short- and me- Italy, Japan, and the United Kingdom. dium-term private debt. The remaining gross re- As the staff of the IMF pointed out in a major ceipts of about $4.5 billion per year represent study on the subject published earlier this year,3 primarily income on direct investment. Of this a number of factors underlie this steady expan- amount, an annual average of $800 million was sion of commercial credits extended to the devel- reported as reinvested, leaving a net level of re- oping countries. Among the more important have patriated direct investment income of roughly $3.7 been the increasing competition for export mar-. billion per year on average. During this same kets among the industrialized countries, the grow- 1964-67 period, new inflows of direct investment ing volume of world trade itself, the growing averaged less than $1.3 billion a year. demand for capital goods in the developing coun-. The flow of investment into the developing tries (coupled with limited access to international countries and the reverse flow of investment in- capital markets and the limited supply of untied come do not, of course, tell the entire story. Of development assistance), and the liberalization of the roughly $30 billion cumulative investment in exchange, credit, and credit insurance policies in the developing countries at the end of 1966, a the DAC countries. There is less understanding, total of about $14.5 billion was in petroleum and however, of the role of private export credits mining, traditionally among the more attractive in development finance. On one hand there is sectors for foreign investors. Although available general agreement that under appropriate circum- information is not conclusive, it is probable that stances, such credits constitute a significant addi- a substantial share of the output of the foreign- tion to the financial resources available to the owned investment in these sectors in most devel- developing countries. On the other hand, resort oping countries is exported directly or indirectly to this type of financing can become excessive, to industrialized areas-Western Europe, North and lead a developing country into an untenable America and Japan. It is, therefore, of some in- debt situation. terest to note that in the same year, 1966, exports Although the flow of private capital to the from developing countries of only four major ex- developing countries has been of growing impor- tractive commodities-petroleum, iron ore, baux- tance, international attention has traditionally fo- ite and copper-amounted to more than $13.8 cussed on the financial resources made available billion. The effects of import substitution, transfer through official channels. Throughout the past two of technology, employment creation and tax gen- decades the flow of official capital has repre- eration derived from the growing flow of direct sented a larger and more predictable share of investment have resulted in additional benefits for total volume: moreover, the terms and condi- the developing countries. tions under which it is extended are more directly Trends in the other two major types of private subject to the development assistance policies of capital flows are more difficult to assess. In 1969, the donor countries and international develop- private portfolio investment in both developing ment institutions. countries and multilateral development institu- Net official flows from all DAC countries have tions increased again, from a peak of more than increased by an average of about 4% a year since $1.5 billion in 1968.1 Surprisingly, this increase 1964 (the basic data are shown in Annex Table took place in the face of the rapid increase 4). This rate of increase has been less than the in the cost of borrowing during the past few rate of growth at current prices of the combined years. Meanwhile, in spite of growing awareness GNP of these countries during the period, so that - of the potential debt problems of the developing net official flows as a share of GNP have fallen areas, the third type of private flow, that of export from 0.49% in 1964 to an estimated 0.39% in credits, has continued to expand. From a level of 1969. The significance of this apparently rather about $500 million per year in 1956-57, the flow small decline in the ratio of these flows to DAC of total net export credits from DAC countries to countries' GNP becomes more clear when placed developing countries tripled to almost $1.6 billion in the perspective of absolute amounts. Had the in 1968, and increased further in 1969.2 For the level of 0.49% been maintained throughout the period, almost $3.9 billion would have been 'This figure represents net disbursements during the year and should not be confused with the figure of $2 billion export credits reter primarilv to net changes in export shown in Annex Table -11. The latter constitutes the credit guarantees outstanding, rather than to disbursed gross value of new issues floated during the year; it was, credits in the conventional sense. however, also a peak level for the period for which data "'The Use of Commercial Credits by Developing Countries are available. for Financing Imports of Capital Goods", in "IMF staff 'Unlike other data reported in DAC statistics, noet flows of Papers, Vol. XVII No. 1, March 1970". 48 added to net official flows between 1964 and Considering these recent developments in the 1970, including $1.8 billion in 1969 alone. volume, composition and terms of the flow of The bulk of the net official flow is made up of financial resources to the developing countries, official development assistance, defined by the the immediate outlook for global development DAC as financing intended primarily to promote finance is not altogether clear. As a natural con- the economic development and welfare of devel- comitant to the economic development and oping countries, with terms which are intended growth in trade of the developing countries, for- to be concessionary in character. (Most of the eign direct investment and access to private export .remainder consists of government-financed ex- financing have continued to grow rapidly. Al- ports and transactions in the securities of inter- though external financing at concessionary terms national institutions at commercial terms.) As from official sources, both bilateral and multi- indicated in Annex Table 4, flows of official de- lateral, has been rising in absolute terms, its rate velopment assistance have also declined in rela- of growth has been slower than the economic ex- tion to the GNP of DAC countries-somewhat pansion of the major capital exporting countries. more, even, than total net official flows. In addition, the grant element of total official Grants and grant-like contributions make up by commitments has shown no pronounced tendency far the largest share of total official flows. From to increase. At present, there is little to indicate 1956 through the early 1960s, they were rarely that these trends are likely to be altered in the less (and often considerably more) than three- immediate future. fourths of total official flows each year. More recently, however, grants have been declining steadily as a share of official flows until, in 1968, External Debt of they constituted somewhat more than 50% of the the Developing Countries total. The single largest factor contributing to this decline has been the progressive reduction of The Articles of Agreement of the World Bank loans repayable in local currencies (which are stipulate that in making or guaranteeing a loan, classified as grant-like flows) extended by the the Bank shall pay due regard to the prospects that United States; these transactions are due to be the borrower (or guarantor) will be in a position entirely discontinued by the end of 1971. Bilateral to meet its obligations under the loan. From the grants declined further in 1969, but contributions very beginning of the Bank's lending operations, to multilateral agencies rose sharply, bringing the prospective borrowers have been required to pro- share of grants and grant-like flows in the total net vide the Bank wvith reasonably complete informa- flow back to about the level of 1964-66. tion on, among other things, their external debt While the fiow of grants has thus been irregular, situation. In order to facilitate the regular provi- the volume of official loans-the other compo- sion of this information, the Bank has, over the nent of total official flows-has generally risen not years, developed a relatively simple but effective only in relative terms but in absolute amounts as reporting and processing system for external debt well. The terms of this lending are shown in the and capital movements.' As the analytical de- indicators for commitments shown in Annex mands and capabilities of the Bank have increased, Table 4. In spite of efforts by most DAC countries, the reporting and processing requirements asso- there has been little significant improvement in ciated with the svstem have grown apace. While the terms of new loan commitments, taken as a considerable progress has been made, the exten- whole. Although there have been year-to-year sion of data collection to cover systematically all .fluctuations in the average maturity, grace period and interest rate of official loans, the concession- 'The Bank's debt data system is based essentially on three ary element of total official loan commitments has separate sources of information: a series on reports re- ceived periodically iron, Bank members on their external .varied within a fairly narrow range around 50%/n. borrowing; a series of similar reports on the lending of The combined effect of these various indicators major crecirtor countries unrder a reporting system oper- is perhaps best expressed in the grant element ated jointly with the OECD's Development Assistance Committee; and a series oi statistecs on international capi- data for total official commitments, loans and tal markets maintained by the Bank in cooperation with grants combined. After remaining fairly stable the OECD's ad hoc Group oli Financial Statisticians. The the mi-i 960, the oncessonary lement debt statistics includled in this Report cover only, public during the mid-1960s, the concessionary element or publicly guaranteed clebt with an original or extended of such commitments, including grants, slipped maturity of more than one year. They do not include data from about 80% in 1964-1966 to about 75% in on non-guaranteed debt of private borrowers or any The aparentrecovry inthe gant eement short-term dlebt, defined as debt with a maturity of, one 1968. The apparent recovery in the grant element year or less. As noted in Part I of this Report, the Bank's indicated for 1969 is, again, a result of the in- statistical reporting system is being revised; one element creased level of contributions to the multilateral oi this revision is an expansion of coverage to include data on non-guaranteed private debt, a significant factor institutions. in the external accounts of many countries. 49 relevant debt and capital flow information will years in the global debt picture correspond fairly require a continued effort. closely to what might have been expected. Eco- Total external public debt of developing coun- nomic development requires investment in capital tries outstanding at the end of 1968 amounted to goods and human resources; as with many of the about $53.4 billion, of which roughly three-fourths industrialized countries during earlier periods in had been disbursed (see Annex Table 5).1 This their history, much of the demand for financial represented an increase of more than $5.4 billion resources in the developing countries today is over the level of $47.9 billion at the end of 1967, being met from external sources. Until at least and continued the constant upward trend ob- some of the more advanced developing countries. served ever since data of this sort first became reach the stage of development at which they available about 15 years ago. For the past ten themselves become net capital exporters, external years, total external public debt outstanding has debt, along with the associated debt service, is. grown at an average compound rate of almost likely to continue to increase. Whether debt and 15% a year. This rate of increase has doubled the debt service can continue to increase as rapidly total debt outstanding every five years since 1955. as during the past decade, particularly in those Preliminary estimates indicate that an additional countries which already have relatively large ex- $6 billion of external public debt was contracted ternal obligations, will depend in large part on by the developing countries last year. This would the implementation of policies to manage this have raised the total to almost $60 billion by the growing debt burden in an orderly fashion and end of 1969, roughly twice the amount outstand- on their general economic performance. ing at the end of 1964. Annex Table 5 also presents figures for debt Total debt service, including both amortization outstanding and debt service by major regions. It of principal and payments of interest, has been must be emphasized that any conclusions which growing almost as rapidly as debt outstanding. In might be drawn from the regional variations which 1968, total debt service rose to almost $4.7 billion, appear in these figures would have to be based on an increase of more than 12% over the 1967 level a thorough appraisal of the many factors which of nearly $4.2 billion. Over the past decade, the underlie them. Explanations of such differences do rate of growth of both debt outstanding and debt not derive solely from the financial arithmetic of service payments has been about twice the rate the volume and terms of lending. The various re- of growth of export earnings of the developing gions covered differ widely in stage and level countries, and almost three times that of their of economic development and industrialization, combined gross domestic product. in relative attractiveness for external investment, It is worth emphasizing that aggregate data such in economic efficiency, etc. A thorough and satis- as these mask a wide range of debt situations in factory explanation of regional variations in levels individual developing countries, including differ- of debt and debt service would have to take all ing relationships between long- and short-term these factors into account, both for meaningful indebtedness, and variations in debt servicing ca- comparisons between regions and for compari- pacity (see below, page 52). In most countries in sons of the very heterogeneous country situations recent years external debt has been held to man- within regions. The discussion which follows does ageable proportions, although in a few there have not attempt to provide the basis for such a sys- been problems. In its analysis of member coun- tematic analysis, but only to document the facts tries' economic prospects and creditworthiness of the regional incidence of present debt, and the the Bank considers each country's situation on an service to which it will give rise. individual basis, within the context of its domestic The data shown in Annex Table 5 indicate and international economic activity. Nevertheless, the trends which have been emerging since the aggregate data, when considered together with early 1960s. Both debt outstanding and debt serv- global trends in economic growth, export earn- ice of the Western Hemisphere countries have ings, capital movements and aid terms, provide a doubled since 1960. The region continues to ac- useful frame of reference for consideration of debt count for by far the largest share of debt outstand- problems and debt management policies. In a ing, more than 31% of the global total. Debt pay- general sense, developments over the past few ments of this region in 1968 made up an even larger share of the year's total-almost one-half. The countries of South Asia, chiefly India and Paki- tistic in ths Report repsresnciudd in the total debt sta stan, accounted for almost 23% of total debt out- commitments with specified repayment terms, under standing at the end of 1968, but for only about which, for the most part, disbursements have already 12% of total debt service during the year. The begun. Undisbursed amounts outstanding under frame agreements, earmarking arrangements and other less firm debt outstanding of these countries has more than types of commitment, are excluded. tripled since 1960, but debt service payments in 50 1968 were just over twice the level at the begin- 16% higher in 1980 than in 1968. Similarly, the ning of the decade. debt service schedules for East Asia show that Debt service by region is given in Annex Table even after eleven years, service payments on exist- 10 broken down by principal type of creditor ing official debt will be higher than at the begin- from 1965 to 1968, showing future payments due ning of the projection period for the countries of up to 1980 on debt outstanding as of December that region. 31, 1968. In this Table, debt service for export fi- In 1968, slightly over half of total public or pub- nancing consists of payments on suppliers' credits licly guaranteed debt service of the developing -and loans from private banks and other financial countries was paid to private creditors, although institutions. Payments to other private creditors only about one-fourth of total debt outstanding cover primarily debt service on bonds and on originated from private sources. By 1980, service funded debt arising from the nationalization of to private creditors on existing debt will have private property. The official categories are self- diminished, as would be expected; it will repre- explanatory. In the Western Hemisphere, service sent only about 15% of the total due in that year. payments on privately held debt outstanding as of Service on debt outstanding at the end of 1968 December 31, 1968, drop off rapidly during to governments and international lending insti- the next few years; by 1980 they will have de- tutions, however, will have declined by only clined to less than 10% of their 1968 level. Debt about 20%. service payments to official creditors at the end Not surprisingly, the outstanding debt of the de- of the period will, by contrast, remain at 60% of veloping areas is concentrated in relatively few their 1968 level. In South Asia, while service on countries. Nineteen of the 81 countries included in privately held debt outstanding at the end of 1968 almost vanishes by 1980, payments to official creditors will then be higher than they were in India Agriculture. Ploughing a rice field with an oxen-drawn plough near Jamalpur in West Bihar. An 1968. Payments to governments on existing debt IDA credit assisted the improveinent and extension will continue to rise after 1968 for seven years, of theSone irrigation system in this area, making only beginning to diminish in 1976 and remaining possible the irrigation of nearly d million acres annually. 5,, 4 Annex Table 5 accounted for three-fourths of short-term debt, but it also results in a net addition the amount outstanding at the end of 1968. Half to long-term debt outstanding if the terms of the of the total debt was located in only eight coun- commitment provide for an extended repayment tries (which also account for just over half of the period of more than one year. total GNP of the developing countries). Details The capacity to service debt is a function of a of debt outstanding by type for these and other country's overall economic situation and strategy, countries included in the total are shown in An- including its international trading and financial nex Table 6. position. Inter alia, debt servicing capacity de- Since 1960, eight developing countries have pends on a country's ability to generate savings, negotiated 15 multilateral debt relief operations to pursue sound fiscal and monetary policies, and involving the consolidation and rescheduling of to earn foreign exchange through exports of goods just over $3 billion in disbursed and outstanding and services to meet its import requirements as debt. Until 1965 multilateral debt rearrangements well as to satisfy its external financial obligations were concerned almost exclusively with private and maintain adequate levels of reserves. The suppliers' credits, and in almost every case since World Bank's regular country analyses normally 1956 commercial credits have figured importantly. take into account a wide range of such factors, in In the mid-1960s it became necessary to under- addition to external public debt. One commonly take rescheduling operations involving official as used indicator in the Bank's country analyses, well as private debt. which is derived in part from statistics produced In April of this year, an agreement was reached by its debt data system, is the debt service ratio. with Indonesia by a number of donor countries As just noted, this indicator cannot substitute for to provide major, long-term debt relief. It was the comprehensive analysis of a country's econ- agreed to reschedule payments on almost $900 omy needed to provide a judgment on debt carry- million of Indonesia's external debt outstanding ing capacity, but it frequently constitutes a starting on July 1, 1966. The principal will be repaid in point in considering trends in this capacity. Al- equal installments over a 30-year period begin- though the definition of the ratio is sometimes ning in 1970. No new moratorium interest will be varied to meet specific analytical requirements, paid on the rearranged payments of principal, and the most common concept is that used in Annex interest on the rescheduled debt will not be Table 7: the ratio of total public debt service paid until the second half of the repayment pe- payments to earnings from exports of goods and riod. Further flexibility was introduced into the non-factor services. The relative burden of exter- agreement under a provision for additional relief nal public debt service is indicated in the very high through an option to defer part of the principal or rapidly growing ratios of some developing repayments due during the first eight years. Pro- countries, particularly Argentina, Brazil,1 Ceylon, vision was also made for a limited review of these Chile, Mexico, Pakistan, Peru and Tunisia. In arrangements any time after 1980 in the light of some cases, the debt service ratio has increased Indonesia's economic situation at that time. This even though export earnings have grown rapidly agreement will improve Indonesia's present ex- over the past few years: the export earnings of ternal debt structure, facilitating orderly planning Mexico and Peru increased by an average of more for her economic recovery and long-range growth. than 8% a year from 1965 to 1968, and those of Nevertheless, the agreement is unique to Indo- Chile and Tunisia by about 10% on average. The nesia and cannot be considered as a precedent for ratios of Ghana and India, on the other hand, general application. Indonesia's economy was have shown temporary reductions during the past prostrate after a lengthy period of grave political two or three years, largely as a result of recent and economic difficulty, and drastic measures debt relief operations rather than improvements were required to support the process of rehabili- in exports: Ghana's earnings from exports of goods tation-which, once undertaken with determina- and services were less in 1968 than in 1965, while tion, could be expected to bear valuable fruit. India's increased at an average rate of less than Formal multilateral debt relief arrangements are 3% a year during the period. The relatively fa- not, of course, the only way to deal with these vorable ratios for Indonesia are the result of a problems. Other kinds of agreement have been combination of the effects of past debt relief, tem- made bilaterally with a number of debtors. These porarily reduced external borrowing and rapidly arrangements have included rescheduling or re- increasing exports. financing of debt service owed to both official In considering these and the many other ele- and officially guaranteed private creditors. In re- ments of a member country's domestic and cent years, some arrangements have also been 'The data for Brazil include a substantial amount of private made to consolidate or refinance short-term debt debt, and are not fully comparable with those for other and commercial arrears. This amounts to relief for countries. 52 external economic situation, the World Bank is ing domestic savings; such savings are essential utilizing to an increasing extent quantitative ana- for sustaining a high level of investment and maxi- lytical techniques and models. Various debt pro- mizing the contribution of foreign capital to the jections have been constructed with the help of large inputs of resources that a modern economy the Bank's debt data base and computer routines requires. for purposes of internal analysis. Adequate inter- There are two fundamental processes of savings pretation of projections such as these would be mobilization-through fiscal policy by budgetary beyond the scope of this Report. Although it has surpluses, and through concentration of private .long been accepted as a general proposition, this savings in financial institutions. Particular attention work confirms the crucial role of the composition has been paid to resource mobilization through and terms of capital flows to the developing coun- the fiscal system, but there is increasing aware- .tries. Moreover, the analysis provides a measure ness that the development of financial institutions of the magnitude of the international effort which to attract savings may represent an even more sig- would be needed simply to maintain the present nificant aspect of total resource mobilization in level of net resource transfer to the developing the developing countries as it is in the developed. countries, much less to increase it as their trade The fiscal process has been and will remain a most and investment requirements grow over the next important source of funds, particularly for the fi- decade. In addition, it suggests that the debt serv- nancing of public investment. Nevertheless, it is ice problems facing a number of developing coun- subject to limitations stemming from competing tries are likely to grow more difficult during the demands for public needs and the time lag be- next few years if recent trends in capital flows, aid tween initiation and implementation of budgetary policies and development performance remain plans. A well organized financial system can rec- unchanged. Globally, both the gross domestic oncile what savers expect in terms of liquidity product and export earnings of the developing and return and what investing enterprises require countries have continued to expand. External debt in terms of amount and cost of money. As such and debt service requirements have increased it can introduce greater flexibility into the resource more rapidly, however, while during the past few mobilization process, particularly for private in- years the net flow of external capital has tended vestment, and is capable of playing a significant to level off and the terms at which it is obtained role in many developing countries. to become somewhat harder. Several developing countries, including some of the largest, have felt it necessary to seek partial relief from existing debt Savings Formation by Fiscal Policy service obligations in recent years. It is clear, Both national governments and the World Bank therefore, that the debt situation of the develop- have emphasized improved taxation as the main ing countries will continue to require the careful method of domestic resource mobilization for attention of the international financial community. economic development. The average tax ratio for most developing countries for which figures are available appears to have increased to about 16% Prospects for Domestic Financing of of national income in recent years (see text table on page 54). In several countries (e.g., Brazil, Economic Development Chile, the Republic of China, Israel and Mauritius) yields from taxes, expressed as a percentage of The mobilization of domestic resources in de- GNP, are close to, and in some cases as high as, *veloping countries is acquiring new and decisive those of developed countries. Furthermore even importance, in view of the rising capacity of their low-taxed countries not separately shown in the economies to use capital effectively. Locally mo- tables have in most cases experienced marked *bilized funds finance by far the main proportion upward movements in their tax ratios. of the costs of economic development projects; In another large sample of developing countries external finance, while forming an essential com- (see text table, page 55), a majority increased the plement to such local funds, depends very signifi- ratio of tax revenues to GNP during the mid- cantly for its effectiveness on the availability of 1960s. As shown in this table, rising levels of taxa- local financial resources in sufficient amounts and tion in many developing countries have not raised appropriate forms. Resource planning has received national savings as much and in as many countries wide attention over the past decade, but inflation as could be expected, given the emphasis attached has had disturbing effects on resource allocation to fiscal policy for such purposes. and on the balance of payments, ultimately ham- The willingness and ability of governments to pering economic development. Inflation reflects pursue firm fiscal policies, on which successful re- inter alia inadequacies in mechanisms for mobiliz- source mobilization through the tax system largely 53 Ratio of Tax Revenue to National Income assessment and collection would undoubtedly Selected Developing Countries reduce the gap which exists in many countries Simple Average between a formal tax structure with high and 1950-59 1965-67 Developing Countries ............. 14.9 15.8 progressive rates, and a low revenue yield from Asiaa 1 1............................ these taxes. Ceylon.. 19.2 204 Governments generally seek to recoup by taxa- China ....................... 19.7 17.9 tion some part of the cost of development, par- Burma ....................... 16.1 16.1 ticularly from those groups which have benefited India ................................ 8.2 14.1 most from it. Economic development helps to cre-, Philippines .... .. ..... .......... 8 112.6 ate new wealth in the hands of particular indi- Korea ... 8.0 ........ 11.1 Africab ... 13.1 15.8 viduals. Reforms of personal and indirect taxation Mauritius ........ 15.5 22.9 are needed to ensure that such individuals con- Southern Rhodesia ...................... 14.5 15.4 tribute to public needs on a broader and rising Ghana ... ......... 12.3 14.4 basis. Linked to this and to other objectives of Kenya .. . ...................... 13.4 13.6 fiscal policy is the need to ensure that the systems Latin America and Carribeanc .15.8 17.6 of direct and indirect tax administration reinforce Brazil .. .. 23.8 34.6 each other in maximizing revenues. Uruguay .28.4 31.0 Another important potential source of increased Chile .......... .. .. ............... 20.3 28.0 Guyana .. . ........... 20.9 23.8 tax yields is the agricultural sector. The introduc- Jamaica ................ 14.4 20.1 tion of technological changes in farming, com- Ecuador ... .......................... 16.7 19.1 bined with improved domestic terms of trade for Peru ............. 13.9 18.8 agricultural products in many developing coun- Central American Common Market . 12.1 13.4 tries, have sharply improved opportunities for Europed .14.3 17.0 higher farm incomes in certain portions of the Greece.. 21.5 26.3 agricultural sector, which consequently both can M paiddle Easte 22.8 19.3 and should bear a larger share of the tax burden. Israel... 25.5 346 Agricultural taxation is often complicated, how- Iraq.... 327 268 ever, by contrasting policies: on the one hand Jordan ....... ......................... 20.2 12.0 exemptions or lower income tax rates may be ap- plied to farm income, while on the other hand The table above refers to 79 developing countries. The countries covered in such benefits may be offset by other factors which the area totals are as fellows: sc eeismyb fstb te atr hc South Asia-Afghanistan, Burma, Ceylon, India, Iran, Nepal, Pakistan. tend to reduce farm earnings; in some cases fast Asia and Pacific-Cambodia, China (Republic of), Indonesia, Korea these include regulated low domestic prices and (Republic of), Laos, Malaysia, Papua and New Guinea, Philippines, Singa- pore, Thailand, Viet-Nam (Republic of). overvalued exchange rates for agricultural exports, bNSorthAfrica-Algeria, Libya, Malta, Morocco, Tunisia. which reduce overseas sales of farm products. EastAfrica-Botswana, Burundi, Congo (Democratic Republic of), Ethiopia, Tax concessions are not unique to agriculture; Kenya, Lesotho, Malagasy Republic, Malawi, Mauritius, Southern Rhodesia, Somalia, Sudan, Tanzania, Uganda, Zambia. they form only a part of more general schemes of WestAfrica-Chad, Dahomey, Gabon, Ghana, Ivory Coast, Nigeria, Senegal, tax concessions, some to individuals, mostly to Sierra Leone, Togo. cSouth America-Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, business. Such concessions represent dilutions of Guyana, Panama, Paraguay, Peru, Uruguay, Venezuela. a fiscal system's potential to raise revenue for pub- CeftralAmerica and Carihhean-Barbados, Central American Common Mar- lic needs: even when justified, their effect in erod- ket (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua), Dominican Republic, Jamaica, Mexico, Trinidad and Tobago. ing the tax base should be clearly recognized and d Europe-Cyprus, Greece, Spain, Turkey. the loss in revenue calculated and taken into ac- e Middle fast-Iraq, Israel, Jordan, Lebanon, Syria, United Arab Republic. count by the authorities. Another problem lies in- Source: IBRD World Tables for all individual countries listed above and for policies designed to hold down charges on public area totals, which include other countries not shown above. services (railroads, power, water, etc.). Such poli- cies act as disguised or concealed subsidies to- depends, is subject to various political and eco- users; when not properly covered by charges en- nomic constraints. A high degree of political tered in the budget, they reduce the resources that leadership and of social unity are necessary if in- should become available to such utilities from creases in taxation are to be legislated for and their own earnings. executed. In economic terms, taxable capacity is The growth of government expenditures has constrained by such factors as the level of per been an important aspect of the budgetary picture capita income and the degree of governmental in most developing countries. Part of this increase direction of an economy, which set limits to the can be regarded as arising out of the process of ability of governments both to improve tax as- economic growth itself. It makes little sense to sessments and to implement effective collection build up additional productive capacity while fail- procedures. Improvements in the machinery of ing to provide the resources needed for proper 54 Classification of Selected Developing ing programs in the light of high and rising needs Revenues and Nc dinagt Chavnges in Tax for such expenditure. The solution to this problem (period taken in most instances is average 1963-65 to average 1965-68) does not lie in the reduction of the quantity of tax Changes in savings as Increase in Decrease in receipts but in an improvement in the quality of proportionofGNP TaxRevenue TaxRevenue expenditure. For example, there could be scope Numberof Countries under special circumstances for earmarking a Savings.. . . PublicanPri loa greater share of revenue increases for develop- Increase in Public Savings with ment objectives which provide new benefits to Decrease in Private Savings..... job 2c individuals and to the community. Stability in Public Savings with Decrease in Private Savings .. 2d _ Savings Mobilization by Financial Institutions Decrease in Public Savings with Increase in Private Savings .....l... . lie 9f A financial system can complement the fiscal Decrease in Public and Private mechanism and the sustained inflow of foreign Savings . .......... 4g lh capital in assuring an orderly process of economic Total 37 12 development. The function of the financial system Public Savings is to link savings, particularly those deriving from Increase in Public Savings ......... 20 2 the growth of modern sectors of the economy, Stability in Public Savings . . 2 - with the investment needs of business enterprises. Decrease in Public Savings ......... 15 10 The efficiency of a financial system may be best Total 37 12 judged from three interrelated points of view: its Private Savings Increase in Private Savings ........ 21 9 ability to attract and mobilize domestic savings, Decrease in Private Savings ... .... 16 3 its adequacy in channeling funds towards produc- Total 37 12 tive uses, and its function as intermediary and guarantor for the inflow and investment of foreign The table above coveis 49 developing countries. References are as follows: capital. a Bolivia, Central African Republic, China (Republic of), Cyprus, Jamaica, thol Kenya, Korea (Republic of), Panama, Paraguay, Turkey. The development of a fiancial system Involves b Argentina, Brazil, Chile, Guyana, Honduras, Iran, Mauritania, Morocco, the adaptation of existing financial institutions, Uganda, Zambia. cUnited Arab Republic, Uruguay. and the introduction of new instruments designed d Ecuador, Malagasy Republic. to broaden and strengthen institutions' inter- eBotswana, Cameroon, Costa Rica, Greece, Guatemala, Malaysia, Peru, mediary functions, in accordance with specific Singapore, Tanzania, Thailand, Tunisia. countries' social structures and the level of their i El Salvador, Ghana, Iraq, Israel, Mauritius, Mexico, Philippines, Senegal, Trinidad and Tobago. agricultural, industrial and infrastructural devel- g Algeria, Ethiopia, Spain, Venezuela. opment. A financial system can best attract con- hNicaragua. fidence and savings when broadly based on well Source: IBRO World Tables. recognized institutions, when its practices are clearly understood, and when changes take place in response to emerging needs. Neither a financial system whose institutional mechanisms lag behind maintenance and full utilization of existing fa- the public and private financing needs of the cilities. In addition, however, governments have economy, nor one involving the introduction of frequently taken on expenditure commitments un- new and complex institutions which find an inade- related to the needs of economic development. quate response in the existing level of financing This growth of non-development current ex- requirements, can be realistically integrated with penditure is a worrying aspect of the overall fiscal or support economic development. problem of developing countries. This worry finds The contribution of financial intermediaries expression in almost every country economic re- consists not only in bringing together savings in port of the World Bank. For many countries, in- amounts and forms appropriate to needs, but also, creases in such current expenditures require a and more significantly, in accustoming savers to much more rapid growth of tax revenues; this may shift from deposit to security types of assets. Cer- be difficult to achieve, particularly if GNP is grow- tain non-banking institutions, such as cooperatives ing more slowly than predicted at the time the and savings institutions, form natural extensions recurrent expenditure obligations were entered of deposit banking; others, such as mortgage and into. finance companies, may help to introduce savers There is a growing awareness of the possibility and investors to the use of marketable instru- that the growth of non-development expenditure ments. These institutions are characteristic of the has been stimulated by the growth of revenue process through which some developing countries itself. Furthermore, it is frequentlydifficult for gov- have already passed, and others are passing now. ernments to reject proposals for additional spend- In some, the economy has progressed far enough 55 and financial institutions have grown and diversi- variety of facilities. The penetration of commercial fied to a point where investment requirements banks into the economy differs widely from coun- may begin to be financed through sales of securi- try to country. Their share in the collection and ties to the public. The maintenance of monetary provision of funds is relatively larger in developing order is essential for sustained progress in this countries than in the developed world, owing to sphere, as shown by the experience of many coun- the absence or inadequate development of spe- tries where it has been hampered or delayed by cialized financial institutions, such as exist in more inflation. advanced countries. A great change has been in Rigidities in supervision, and in regulations in- progress, however, over the past decade; a num- troduced by governments in order to direct credit ber of developing countries (such as Argentina, and hold down the cost of money, can impede Brazil, India, Israel, Mexico and some others) have progress toward institutional structures responsive attained nearly as diversified financial systems as. to social and economic change. Undoubtedly, exist in more developed countries, offering to banking supervision and credit regulations are savers alternative types of assets (in maturity, risk necessary instruments of public and financial poli- and return) and providing various types of financ- cies, but their exercise by the authorities should ing related to the diverse and changing needs of not be carried to the point of impinging on the their economies. flexibility of the financial mechanism. In many A variety of patterns has emerged in this evolu- countries, the rigidity of government regulations tion, with special characteristics in certain areas. has stifled innovation within the institutional sys- For instance, mortgage financing for home owner- tem and stimulated the growth of "parallel" or ship has proved most popular in Latin America, extra-banking markets, in which transactions are with specialized institutions and instruments facili- taking place outside official surveillance, at higher tating a larger flow of saving for this purpose. interest rates, on more onerous terms and for Everywhere agricultural financing has involved of- purposes other than those envisaged by the ficial agencies or special funds, but the experience authorities. of certain countries in Latin America and Asia It has been a widespread practice to keep inter- points to the important role that commercial est rates low by legislation, regulation or market banks and cooperative-type institutions can play intervention-and to enforce such rates by direct in opening traditionally closed sectors to a controls on internal and external transactions. It is "money economy" and mobilizing local saving for understandable that governments should wish to local financing. In some countries, like India and keep interest rates as low as possible, in view of Pakistan, the postal savings bank has provided the damaging effects of high borrowing costs on widely diffused facilities through which money economic development programs. Nevertheless, could be saved from and transferred down to the artificially low rates hinder savings mobilization; hamlet level, and a reservoir of funds secured for also, by providing borrowers with uneconomic financing public needs. and concealed subsidies, they distort performance Finance companies have also become very pop- criteria as to the efficiency of investment, and con- ular, but there is no uniformity in their purposes tribute to the mis-allocation of resources. Policies and functions. Private companies have tended to to hold down interest rates at levels not much concentrate on the provision of consumer finance higher (or actually lower) than those prevailing in some countries (Argentina, Brazil, Nigeria), or in the leading external money and capital markets on financing established business in others (Co- also stimulate damaging outflows of funds by -lombia, Israel, Mexico, Pakistan, Philippines); in groups commanding sufficiently large amounts to addition, such institutions have occasionally par- justify their transfer out of the country. All in all, ticipated in the provision of funds for new ven- rigid controls and low interest rates have rarely tures, jointly with foreign capital and initiative. been effective for the purpose or progress they The World Bank Group has supported the for- intended to achieve; indeed their effects have mation of market-oriented development finance generally tended to produce precisely the situa- companies in some thirty countries. Many of these tion the authorities had intended to avoid, namely, institutions are playing a significant role in financ- to create a scarcity of resources. ing industrial development, and some have helped Despite shortcomings, progress has been made to build a local capital market. In some countries, in a number of countries toward the develop- public institutions are assigned the task of provid- ment of financial systems appropriate to the level ing vast capital outlays needed by new urban cen- reached by their economies or by certain leading ters emerging in developing (as well as in devel- sectors. In practically all developing countries, oped) countries. Of particular importance in this commercial banks constitute the nucleus of the respect are the various forms of "contractual" sav- financial system and are equipped to provide a ings institutions - ranging from the compulsory 56 charges levied for social security to contractual Urbanization arrangements, offered by insurance companies on a collective or individual basis, assuring a flow of The Bank is finding itself increasingly involved in savings to common pools available for financing problems of urbanization, and is attempting to see public works which result in social change. how it can respond to these problems. The special There are no complete, comparable and syste- section which follows presents an outline of the matic data as to the degree to which various de- Bank's preliminary thinking on this important veloping countries have been able to advance the subject. -formation of their financial systems, in terms of their economic development and the diversifica- Introduction tion of their financing requirements. For illustra- Historically, urbanization has been inseparably stive purposes, a number of countries have been associated with the process of economic develop- chosen, for which certain data could be assem- ment. The city, with its concentration of industry, bled. Annex Table 3 indicates the relative im- commerce and administration, of capital, labor portance reached by these countries' banking and and technology, has traditionally been a powerful non-banking financial institutions in the course of generator of national economic growth. But the the past decade; the table shows the percentage economic and social costs associated with urban- of gross national product represented by currency, ization can be heavy. This was true of the cities liabilities of commerical banks and non-banking of the currently developed world during their institutions, and claims on the private sector. In a period of rapid urbanization; it is equally true of number of these selected countries (Colombia, the cities of today's developing countries. Urban- Costa Rica, Israel, Morocco, Tunisia) demand de- ization can hardly be stopped; the object of posits have become more important than currency analysis must be to identify the costs it entails, and in domestic transactions, reflecting the leading to devise policies to minimize these costs and to role and acceptance of commercial banks as key promote more balanced urban growth. Then the institutions in their financial systems. Moreover, power of the city as an engine of development can abtainable data for some of these and other coun- be harnessed for the benefit of the economy of tries (Republic of China, Honduras, India, Mexico, the country as a whole. Pakistan, Peru, Philippines, United Arab Republic), The urban problem is not unique to the devel- indicate that non-banking financial institutions are oping countries. In the more developed nations complementing commercial banks in a significant a good deal of attention is paid to urban prob- way. lems. Yet there is a fundamental difference. In the The World Bank has a special interest in the developed nations the urban poor, the migrant performance of developing countries' financial from the country and inhabitants of backward systems in terms of the contribution they can regions form a relatively small part of generally make to the productive combination of domestic affluent societies where population pressures are and foreign capital. This is generally linked to the also far less. Further, immigration from the coun- recognition that domestic institutions have be- tryside is frequently offset, at least in part, by come able to mobilize domestic financial re- emigration from the city of the better-off-who sources in appropriate forms and amounts. A leave behind an infrastructure of roads, power, country's ability to mobilize domestic resources sanitation, school and transportation facilities. and to participate in combined ventures with for- Accordingly, attention may be focused more in- eign capital depends to a large extent on its poli- tensely on questions such as urban renewal, pol- icies with respect to acceptance of foreign capital lution, congestion, housing and recreation. In the and financial regulations. Along with financial developed world, therefore, the problem is more policies, the development of skilful finance man- one of proper resource allocation and the creation *agement is important in bringing capital and of appropriate social mechanisms to integrate know-how together; its scarcity is often a major those still outside the main stream into the mod- constraint on the expansion of investment, do- ern economic and social systems enjoyed by the mestic or foreign. Finally, the development of a majority. financial system able to mobilize an increasing In contrast, the developing countries are ex- share of domestic savings, and to attract foreign periencing a very fast pace of urbanization, ac- capital in amounts commensurate with its most companied by growing and pervasive social and efficient use, also involves still broader factors: economic problems whose major symptoms are, these include social and cultural changes which with some variations, evident throughout the de- influence the general attitude of the population velopingworld. Urban populations are rising faster toward saving and investing-what might be than new employment opportunities, thus causing called, the "development climate" of the country. serious unemployment and underemployment. 57 Cities' financial inability to meet the sharply developing countries, there are a number of dis- rising demand for social services and social over- cernible trends. head investment, is leading to a deterioration in 1. The least developed countries are also those the quality of urban life for a substantial part of with the lowest percentage of their populations their inhabitants; a large and growing proportion urbanized, and it is these countries which now of the urban population is forced to live at the are experiencing the sharpest rise in population margin of existence in slums and shanty towns. growth in general and urban growth in particular. Problems associated with the growth of cities, in- The prospects are for still more accelerated urban- effective allocation of resources and lack of basic ization in this least urbanized and developed. infrastructure retard industrialization and inhibit group of countries; by 1960, these countries had the growth of employment and of the national only 13% of their populations in urban areas, com- economy. Urban centers also lack adequate mech- pared with over 50% in the developed regions. anisms for the cultural integration of new in- 2. Urban growth in the developing world is habitants, and are unable to prepare them for concentrated to a striking extent in large cities productive economic life. Consequently, the cities (those with populations of 500,000 and over). Be- of important parts of the developing world are tween 1920 and 1960 big cities absorbed about increasingly spawning a "culture of poverty" one-half of the urban growth in East Asia, about which is more akin to rural peasant society than one-third in South Asia and Latin America and it is to modern urban society. At the same time, about one-quarter in Africa. In 1920 only 13% of in the developing countries as in the developed, the world's big cities were located in developing city growth all too often occurs without adequate countries; by 1960, 37% of such cities were in the consideration of the ecological and economic developing world. Both total and urban popula- costs of environmental pollution. tion growth accelerated in the decade of the Urbanization is an integral part of the economic 1950s, the last period for which census data are and social transformation of the developing world. available; during that decade the rate of increase This transformation is currently an unbalanced one of the urban population of the developing coun- largely because of excess population growth rates, tries, was over 50% higher than that of the previ- and the imbalance may well become more pro- ous three decades. Projections for the period 1960 nounced for a time given current demographic to 2000 indicate that the urban population of the trends, economic growth rates and constraints on developing regions may quadruple to over 1.4 bil- resources. Nevertheless, the economic growth of lion people, while the rural and small town popu- urban areas, where most modern industry is cen- lation of those areas may double in this period to tered, determines to a very large extent that of the some 3.2 billion. nation; and the problems involved in urbaniza- The past and projected growth of urban and tion will therefore profoundly influence achieve- rural population is shown in the table below. ment of national development objectives. It is important that planning promote both the most efficient use of space in cities, and the emergence of a system of cities which responds adequately emergnc e to countries' changing economic needs-in turn P O= enabling the mobilization of resources for subse- quent orderly urban development. That this can be done is evident from the examples of some ~a~ o cities in the developing world which are, at least 7 in comparative terms, making progress in finding53 fl social and economic solutions to the problems of rapid urbanization. t4Wr&Pp9te £930 v6 Urbanization Trends Between 1920 and 1960 the world's population rose by about 60% from 1.9 billion people to 3. Rates of urban growth will probably be high- 3.0 billion. In this period, the world's urban popu- est in Africa (at 4.5% annually) starting from a lation (defined as groupings of 20,000 people and relatively low level of urbanization, followed by over) rose from 270 million to 750 million, a rise Latin America, South Asia and East Asia. The trend of 185%. The rise in urban population in the de- towards concentration in large cities is expected veloped countries (125%) was much less rapid to continue; the big cities of the developing world than that in the developing world (350%). Within may have to accommodate an additional 100 mil- the overall picture of rapid urbanization in the lion people in the decade of the 1970s alone. 58 Most major cities are growing at rates of from 5°h Ghana Electric Power. The Akosombo Dam and to 8% annually, and can be expected to double povwer plant on the Volta River. This giant dam andl their population in 10 to 15 years' time. power plant with a capacitvof 588,000 kilowatts and an ultimate capacitv of 882,000 kilowvatts n.as built with the ass;itance of a $47 million World Bank loan. The Labor Force, Employment and largest user or power frotn this plant is an aluminumn Output Implications smelter at Tema cnnstructed at the same time as the pJower p)lant. The urban labor forces of the developing re- gions may rise five or sixfold by the turn of the century. The prospects of absorbing these people proportion of underemployed urban workers will in modern sector employment are not good. In have to find work in traditional service occupa- the decade from 1955 to 1964, manufacturing out- tions. One element in policies to mitigate this put in the developing world rose at an annual rate problem would be a concentrated effort to up- of 7% and employment in this sector by only 4% grade the quality of "human capital" through annually.Aboutone-fourth of the urban labor force job-oriented educational programs, which could *in Asia and Africa, and about one-third in Latin facilitate the process of integrating unskilled urban America, is in manufacturing and public utilities. labor forces into the urban economy. Moreover, These proportions of workers in manufacturing it is essential that foreign trade and subsidy poli- -and public utilities can probably be maintained up cies which make scarce capital artificially cheap to the year 2000, given labor force projections and relative to labor be considered with respect to recent output and productivity trends. But in order their impact on the urban employment problem. to increase employment in these sectors sharply and to prevent the continued growth of surplus Internal Migration urban labor, a marked rise in manufacturing and Migration to urban centers, despite high levels public sector investment and output would seem of underemployment, accounts for half or more to be required. Government, commerce and re- of total urban growth. Whereas population growth lated activities cannot be expected to grow much can be reasonably predicted from birth and mor- more rapidly than public revenues and total trans- tality rates, migration is essentially a response to actions. Accordingly, in the absence of new job incentives. Motivation for people to migrate is opportunities, the prospect is that a larger based on some combination of perceived welfare 59 Kenya-Highways. Constructing a new road about 50 on the same amount of land-in one context leads miles southeast of Nairobi. The World Bank has been to migration and "over-urbanization" in another. supporting the development of the highway systems Thus high rates of population growth in many in East Africa for the past 15 years. Bank loans have also been used to improve the railway system and developing countries contribute greatly to the expand and improve ports in the region, pressure on urban areas and to the demand for resources for current consumption instead of for growth. Successful family planning programs can and economic incentives, and reflects a combina- lead to important short-term savings in resources tion of rural push and urban pull factors. Though but will not provide any relief for about two dec- conditions are not good in the towns, conditions ades to the general problem of the migration of in rural areas in most developing countries are surplus labor to the cities, since those who will probably still less satisfactory, especially for the enter the labor force over the next 15 years are young and dynamic members of the population. already born. Thus, even if population growth The facilities available in the cities-electricity, rates in the developing nations were to fall sharply, transportation, water supply, education, shopping, their urban areas would continue to grow rapidly. entertainment-are likely to compare favorably, As the lowest income areas of the world, including however overburdened they may be, with those most of Asia and tropical Africa, have yet to reach- in the countrysiden at the same time, the industries a 25% level of urbanization, a vast number of located in or around cities will probably provide potential migrants are available to come to the workers with higher rewards for their labor than cities and probably will. the kinds of job available in rural areas or small towns. Thus the decision to migrate to the cities Urbanization and Economic Development is a rational one; furthermore, the costs to society Historically the city has grown in response to do not appear to outweigh the benefits to the the need to manage resources and labor forces individual. in societies which were able to produce surpluses Migration is partly caused by excess population of goods. In the industrializing West the urban growth in relation to economic growth. "Over- center itself became the center of economic activ- ruralization"-more people trying to earn a living ity, as the important surpluses produced were 60 chiefly in the manufacturing and service sec- productive activities. In the longer run, however, tors, rather than in agriculture. Industrialization its service sector may well be the chief determi- changed the technical-organizational base of so- nant of the competitiveness of a city's output. ciety. The functional specialization of activity went With the growth of a national economy, involving hand-in-hand with the concentration of popula- demand for new products and specialization in tion in particular places. But patterns of urban- production, an industrial complex may grow ization differ depending on culture, historical which both trades with other areas and provides circumstances and economic structure. Indeed, goods for the large market of the city itself. The the urban responses of the developing countries large urban center can offer important economies tend to differ sharply from the patterns experi- of scale for productive trade and industry, and enced In the West. . hesed inthew patternsWofurbanresponse.are for public sector activities. It can also generate , These new patterns of urban , response are so-called "external economies" in the form of largely accounted for by differences between the inter-industry linkages, pools of skilled labor, fi- socio-economic factors pertaining in nineteenth- century Europe and America on the one hand, nance and research. and in today's developing countries on the other. Urban concentration must achieve a certain For example, health conditions are notably better 'critical mass" for external economies and internal in the cities of today's developing world than they economies of scale to raise productivity and foster were in the nineteenth-century West. Conse- further growth. At the same time, careful study is quently, today's urbanizing countries face a higher needed to determine at what point the external rate of natural population increase than did the diseconomies of city growth in the form of the cities of the developed world during its period of costs of pollution, traffic congestion and ineffec- intensive urbanization. At the same time, industry tive administration, for example, overwhelm the forms a relatively smaller proportion of total eco- benefits provided by urban concentration and be- nomic activity. Moreover, in the earliest phases of gin to affect adversely the prospects for new in- industrialization and technological development vestment and growth. in the West, far more labor was needed per unit of output than would be appropriate in the indus- The Region trialized countries today, given the changes in the The city is not an isolated economic unit. A relative costs of factors of production. Today's nation may be said to consist of a system of cities developing countries, wishing to create industrial in which each performs functions for its surround- sectors which can compete internationally, do not ing regions. Cities may also be regarded in a hier- have to go through the process of recreating a archial framework with certain "primate" cities modern industrial technology since they can draw (i.e. those which dominate a nation, or in some on existing techniques developed in the West. On cases a region) performing functions for the entire the other hand, in choosing to adopt this tech- economy; other cities may depend on the primate nology, they may find it inappropriate to the rela- city in varying degrees. A number of writers have tive costs of capital and labor in their societies. referred to a "trickling down" effect in which the So far as labor is concerned, therefore, they may rapid growth of primate urban centers in the early consequently face both an acute shortage of skills stages of development is replaced by more bal- and a high overall level of urban underemploy- anced growth at later stages of development when ment. in the nineteenth-century West a rapidly interior areas are opened and transport and edu- growing industrial sector operating within the cation become more widely available. But concen- -context of a comparatively slowly-growing labor tration in primate centers may inhibit subsequent force was able to absorb the influx of largely balanced growth; the big city may exert such an migrant workers; in effect, the pace of urban influence that it draws in capital, labor and en- -growth was in better balance with the general trepreneurship in a continuous self-perpetuating trend of the then urbanizing countries' economies process. Traditional rural areas may fail to respond than it is in today's. Urban pull was the main fac- to the changing demand for agricultural products, tor in the West's urbanization; by contrast, city or to adopt modern technology and inputs. The growth in the developing countries must be con- integration of such areas into the nation's market sidered in the light of a combination of urban economy may require substantial structural re- pull and rural push factors. forms, in land tenure for example. Yet the process of modernizing agriculture often reduces the need The Urban Economy for labor and may stimulate migration to the cities. The city may conceptually be viewed as a pro- Economic development policy for cities cannot, ducer trading with the rest of the economy. The therefore, be based on a purely urban strategy, service sector of the city supports its dynamic but must also consider the interaction between 61 urban and rural areas in making the most effective The critical limiting factor in the urban economy use of resources. may well be management. Large cities provide the bulk of modern sector jobs and incomes and a Urbanization Issues for the 1970s good part of a nation's traditional service employ- The Nation ment; effectiveness of the management function may be a crucial determinant in the ability of a National policy making and resource allocation society to achieve its development goals. needs to take into account a new dimension in thinking about urban growth. The cities are not Financing Urban Growth just absorbers of resources which must be rationed if other national goals are to be financed; rather, National Resource Allocation they are instruments of economic and social trans- In a number of countries effective regional and formation of the whole nation. Choices must be urban development programs cannot be carrieds made over a vvide range of priorities between in- out as long as insufficient consideration is given vestment in commodity production and what may to the appropriate division of resources between be termed settlement infrastructure and urban national and local authorities. The contribution of services. In this respect the standards of urban the urban economies ought to be considered in public services can best be set in relation to the the formulation and implementation of national availability of resources and the need to achieve strategies of development. In some countries urban growth and employment objectives. better coordination may be required between na- A related issue concerns the problem of regional tional, regional and urban development authori- imbalance, which frequently leads to policies de- ties. Allocations of resources which are made signed to limit the size of big cities. Such policies mainly for distributional, political or welfare rea- may achieve certain distributional goals in back- sons may not maximize growth in cases where ward regions, but at the expense of overall na- this remains the fundamental aim of national eco- tional growth, Of course, national policy must take nomic policy. into account the longer run objectives of integrat- ing the nation both socially and economically. But Resource Mobilization at the Local Level a national development strategy should consider Most urban administrations lack sufficient funds selecting regions \vhere concentrated activity and for capital requirements, and even current reve- investment can have a decisive impact on the nues to maintain existing services. It can be shown economic development of a wide area. The selec- that the management effectiveness of comparable tion of critical growth regions will depend largely cities in a given economy varies with the efficiency on the opportunities for industrial growth and, in of local resource mobilization through tax systems, some cases, prospects for the development of un- rate structures, assessments and borrowing on tapped resources. Publicly provided infrastructure local markets. In particular, the rate policies of facilities and fiscal policies can be powerful forces public utility service systems need to be reviewed for the promotion of such centers. Failure properly in the context of the prospects for financing public to select and promote "growth poles" can lead to investments from internally generated sources. a serious waste of scarce development resources. Savings Mobilization for Housing The Urban Region Housing is a central issue in the problem of The creation of coherent national strategies for urbanization. Migrants and the poor, who make up urban-regional development will require careful an increasing proportion of existing urban popu-- reappraisal of the economy of the city and its sur- lations, need shelter. A construction industry., rounding region. Many cities face problems of particularlv for housing, can have important em- fragmented administration, inefficient municipal ployment creating effects for the lower unskilled. or regional utility systems and a general lack of income groups, while at the same time creating a coordination in planning and in the allocation demand for building materials. W'here the neces- of investments. Municipalities are often under- sary labor and materials are locally available, an financed and find it difficult to plan effective important economic sector can be stimulated budgets and resource allocations. An overall de- without adverse balance of payments conse- velopment framework within which investment quences-provided that the financial resources programs can be evaluated and carried out is es- generated for expenditure on housing programs sential. Urban development strategy should aim do not contribute to excess demand pressures. at optimizing output and employment in a given Savings thus become a critical element in national area and providing basic urban works and services housing policies. Institution building and resource at the lowest cost. mobilization are difficult at this level where 62 financial savings are not large. Yet the lesson of resources through improved management and re- experience is that people who are offered the in- source allocation procedures. They can greatly centive of a housing site with perhaps minimum improve local resource mobilization. The eco- services will build their own dwelling from inter- nomic and social decisions involved in urbaniza- mittent savings. Such housing does not saddle the tion policy need to be planned and undertaken owner with large fixed debts and provides more at the sub-national urban level as well as at the housing at an earlier stage of urban development national level. Objectives must be specified, than does standard public housing. Public policy means identified, choices made and a mechanism should find ways to mobilize this large building devised for the efficient carrying out of decisions. potential by encouraging the use of land for Urbanization is intimately connected with over- immigrant settlements in ways consistent with all national economic growth. Strategies for urban overall metropolitan development strategy, and development should, therefore, be based on com- without a large diversion of public savings. prehensive economic development considera- At higher income levels a number of develop- tions; detailed investment planning should aim ing countries have had a good deal of success in to concentrate on infrastructure packages which stimulating home building through savings and promote soundly-based urban growth within the loan associations, building societies or savings context of national economic priority needs. The banks. These may take a variety of forms, ranging World Bank, as the leading multilateral develop- from fully public to mixed and private associa- ment agency, has already helped to finance the tions. When tied to the possibility of acquiring a expansion of urban infrastructure, urban economic long-term loan for a house, the savings generated activity and social services in a number of coun- may be of a kind previously untapped. The ele- tries, notably through its lending programs for ment of public subsidv need only be sufficient to public utilities, industry, and education. supplement what should be basically a savings The Bank is aware of the complex analytical effort on the part of the private sector. But high problems involved in formulating and carrying rates of inflation present a problem in this context, out sound urban/regional development strategies; Unless compensatory monetary adjustments are such strategies will require a multi-sectoral ap- made, inflation tends to reduce both the incentive proach, including consideration of such broader to save and the value of the financial assets of the questions as family planning, training and employ- institution mobilizing housing savings. ment. Time and experience will be necessary to deal with these problems. Further, the costs of Conclusion urban development are likely to be enormous, and to be largely in the form of local currency. The Many of the cities of the developing world will Bank can at best only address itself to those as- double in population, and probably in size, within pects which are consistent with its terms of ref- the foreseeable future. An opportunity exists to erence and financial capabilities. As in other fields, provide for this growth in a far more efficient therefore, the roles of the Bank and of other inter- manner than was done in the past, precisely be- national agencies are likely to be catalytic in rela- cause so much of urban growth is yet to come. tion to what must essentially become an expanded The developing countries can plan for more ra- effort on the part of the developing countries tional urban growth patterns. They can conserve themselves. 63 Statistical Annex Table Page . Selected Economic Indicators for Developing and Industrialized Countries-Regional Sum mary ..6....... ....................... ......................... ...... 66 2 World Exports by Origin and Destination . 68 3 Financial Indicators for Selected Countries ....... . ......................... ................... ... 69 4 The Flow of Financial Resources from DAC Countries to Developing Countries and Multilateral Institutions ................ ................... 71 5 External Public Debt Outstanding and Debt Service Payments of 81 Developing Countries .71 6 External Public Debt Outstanding of 81 Developing Countries by Country 72 7 Service Payments on External Public Debt as Percentage of Exports of Goods and Services .72 8 External Public Debt Incurred and Grants Received by Selected Developing Countries, Average by Sources and Terms. 74 9 Disbursements, Amortization, Interest, Net Flow and Net Transfer on Official Grants and External Public Debt of Selected Developing Countries .. ..... .................................. 76 10 Estimated Service Payments on Existing External Public Debt of 81 Developing Countries, by Category of Indebtedness .............. ..... .. ... ....... ..... ... .... ... 78 11 Foreign and International Bond Issues by Market and Country of Borrower Entity .80 12 Average Issue Yield of New Foreign and International Bonds 82 65 Selected Economic Indicators for Developing and Industrialized Countries-Regional Summary Average Annual Rates of Growth and Shares in GNP, 1961-1969 (Percentages) Region 1961-65 1966 1967 1968 1969(P) Developing Countries Average Annual Rates of Growth: Total GDP .......... .................. 5.1 4.8 5.2 5.9 6.7 Agricultural production . ........... 2.3 1.8 4.6 3.0 Manufacturing production . ...... ... 8.4 7.0 5.2 9.2 - Population . ........................... 2.6 2.6 2.6 2.5 2.5 GDP per capita . ............ 2.5 2.2 2.6 3.3 4.1 Gross investment . ............. 6.4 3.9 4.0 9.5 - Share in GNP: Gross investment ....................... 18.4 18.8 18.1 18.6 - Savings ............................ 15.9 16.2 15.7 15.8 Africa Average Annual Rates of Growth: Total GDP . ........................... 4.3 3.4 4.8 4.8 4.1 Agricultural production . ........... 2.2 0.1 2.9 1.7 - Manufacturing production . .......... 9.7 1.1 4.4 8.9 - Population . ........................... 2.4 2.5 2.6 2.4 2.4 GDP per capita . .............. 1.9 0.9 2.1 2.3 1.7 Gross investment . .............. ...... 2.5 9.7 -0.5 3.7 - Share in GNP: Gross investment ....................... 15.4 16.5 15.8 15.9 - Savings ... .............. ........... 12.4 13.9 14.4 14.4 - Southern Europe Average Annual Rates of Growth: Total GDP ........... ........... 7.3 7.5 4.5 4.9 7.3 Agricultural production .................. 2.5 11.3 1.1 2.0 - Manufacturing production ................ 11.3 13.3 5.3 7.4 - Population ............................ 1.4 1.4 1.5 1.4 1.5 GDP per capita .............. .......... 5.8 6.0 3.0 3.4 5.7 Gross investment ....................... 10.8 8.1 3.6 5.8 - Share in GNP: Gross investment ....................... 24.5 25.0 22.6 22.9 - Savings ............................ 21.2 21.6 19.9 19.8 East Asia Average Annual Rates of Growth: Total GDP . ........................... 5.5 7.2 4.4 7.8 10.0 Agricultural production . ........... 3.0 5.9 -1.9 4.2 - Manufacturing production . .......... 8.1 11.1 11.9 17.0 - Population ............................ 2.8 2.7 2.8 2.8 2.7 GDP per capita . .............. 2.7 4.4 1.6 4.9 7.1 Gross investment . .............. 10.7 22.8 5.9 19.5 - Share in GNP: Gross investment . .............. 15.2 18.9 18.0 19.5 - Savings . ........................... 11.5 15.8 15.1 16.1 - Middle East Average Annual Rates of Growth: Total GDP . ........................... 7.4 6.3 6.5 9.2 8.7 Agricultural production .................. 5.4 -4.0 13.2 7.7 - Manufacturing production . .......... 11.0 8.0 7.0 14.2 - Population . ........................... 2.9 2.8 3.0 2.7 2.7 GDP per capita . .............. 4.4 3.4 3.4 6.3 5.9 Gross investment . ............. 8.2 0.4 -0.5 17.2 - Share in GNP: Gross investment ....................... 19.8 18.4 17.6 19.7 - Savings ............................ 13.0 12.8 12.8 13.3 - (continued) 66 Table 1 Region 1961-65 1966 1967 1968 1969(P) South Asia Average Annual Rates of Growth: Total GDP 3.5 1.9 7.4 5.3 6.3 Agricultural production 0.8 -1.1 8.4 4.7 - Manufacturing production 9.7 -0.6 2.7 3.5 - Population 2.5 ............................ 2.5 2.5 2.5 2.5 GDP per capita . .... ............ 0.9 -.0.6 4.8 2.7 2.7 Gross investment .. ............5........ .9 -12.0 8.0 10.5 - Share in GNP: Gross investment . .16.1 15.0 15.1 15.7 - Savings ................ .. . .. 13.9 11.9 12.2 13.0 - Western Hemisphere Average Annual Rates of Growth: Total GDP. 5.0 4.7 4.5 5.9 6.4 Agricultural production 3.8 -0.7 5.2 -0.4 4.4 Manufacturing production . .5.8 6.1 4.3 9.3 7.7 Population .. .......................... .0 3.0 3.0 3.0 3.0 GDP per capita ..... .... ............ 1.9 1.7 1.4 2.9 3.3 Gross investment . .. .. ....... 4.1 2.9 3.7 8.3 - Share in GNP: Gross investment . .19.1 18.8 18.5 18.5 - Savings . . 18.0 17.6 16.9 16.4 - Industrialized Countries Average Annual Rates of Growth: Total GDP. 5.1 5.5 3.4 5.4 4.9 Agricultural production .1.8 2.0 6.1 2.7 - Manufacturing production 6.0 7.5 2.3 6.7 - Population 1.3 1.1 1.0 1.0 0.9 GDP per capita .3.8 4.4 2.4 4.4 4.0 Gross investment .6.3 6.4 0.6 7.1 - Share in GNP: Gross investment. 21.3 22.0 21.3 21.6 - Savings .21.9 22.5 21.8 22.2 - Note: Regional coverage, in terms of GOP, of countries included in the computations: Developing countries-96%, Africa-91%, South Asia-100%, East Asia-94%, Southern Europe-100%, Western Hemisphere-99%, and Middle East-78%. Definition of Regions Estimates for the following countries are included in this table: DEVELOPING COUNTRIES-74 countries and territories covering approximately 96% of GDP of all developing areas. Africa: Algeria, Angola, Cameroon, Congo (Democratic Republic of), Ethiopia, Gabon, Ghana, Ivory Coast, Kenya, Libya, Malagasy Republic, Malawi, Mali, Mauritius, Morocco, Niger, Nigeria, Rhodesia, Senegal, Sudan, Tanzania, Togo, Tunisia, Uganda, United Arab Republic, Upper Volta and Zambia. These countries account for 91% of the aggregate GDP of the region. South Asia: Burma. Ceylon, India and Pakistan (Coverage 100%). East Asia: Cambodia, China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Thailand and Viet-Nam (Coverage 94%). Southern Europe: Cyprus, Greece, Portugal, Spain, Turkey and Yugoslavia (Coverage 100%). Western Hemisphere: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela (Coverage 99%). Middle East: Iran, Iraq, Israel, Jordan, Lebanon and Syria (Coverage 78%). INDUSTRIALIZED COUNTRIES North America: Canada and United States. Western Europe: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Sweden, Switzerland and United Kingdom. Other industrialized countries: Australia, Japan, New Zealand and South Africa. (P) Preliminary. Source: World Bank. 67 World Exports by Origin and Destination, 1961-1969 Table 2 (F.o.b., Millions of US dollars) Developing market economies Exports to Developed Centrally market Latin planned Exports from World(') economies(2) Total(3) America Africa Asia economies World 1961-65, annual avg. 157,508 105,138 33,116 8,634 7,028 15,018 18,148 1967 .214,110 147,390 41,760 10,600 8,330 19,700 23,460 1968 ....... .. 238.680 165,810 45,960 12,120 8,920 21,700 25,380 1969 (P) .271,000 190,513 51,490 13,550 10,569 24,390 28,857 Developed market economies 1961-65, annual avg .... 106,862 78,580 23,886 6,768 5,488 10,214 3,986 1967 ........ .... 149,240 112,170 30,280 8,190 6,300 13,850 6,270 1968 . ........... 167,670 126,920 33,690 9,380 6,860 15,400 6;510 1969 (P) ............ 193,500 147,834 38,700 10,836 7,740 17,415 7,341 Developing market economies 1961-65, annual avg 31,854 22,876 6,840 1,170 1,056 3,590 1,810 1967 . .39,980 29,310 8,130 1,530 1,220 4,200 2,160 1968 . . 44,060 32,670 8,780 1,780 1,290 4,560 2,220 1969(P) 48,100 36,075 9,380 2,020 1,299 4,810 2,378 Latin America 1961-65, annual avg... 9,864 7,384 1,776 810 86 89 686 1967 .11,700 8,650 2,270 1,210 63 130 800 1968 12,190 9,030 2,420 1,380 69 162 755 1969 (P) .13,000 9,620 2,600 1,560 78 195 777 Africa 1961-65, annual avg 6,422 5,208 774 39 454 273 404 1967 .8,330 6,680 940 42 540 320 530 1968. 9,720 7,910 1,040 50 600 340 582 1969 (P). 10,800 8,856 1,134 54 648 356 619 Asia 1961-65, annual avg 13,788 8,846 3,986 209 464 3,210 724 1967 .17,860 12,260 4,610 201 580 3,710 835 1968 .19,900 13,850 5,030 250 600 4,040 875 1969(P) .. 21,900 15,440 5,475 285 613 4,380 943 Centrally planned economies 1961-65, annual avg.. 18,780 3,682 2,394 690 482 1,218 12,350 1967 ............ 24,890 5,910 3,350 880 810 1,655 15,030 1968 . ........... 26,960 6,210 3,480 965 775 1,750 16,645 1969 (P) . ......... 28,980 6,626 3,751 1,076 756 1,855 18,190 ; Includes miscellaneous items not broken down by destination. (2) Includes developing countries of Southern Europe. (3) Includes Caribbean and Pacific Islands. (P) Preliminary. Source: United Nations. 68 Financial Indicators for Selected Countries, Table 3 1960, 1965 and 1968 (Percentages of GDP) Monetary Liabilities Financial Liabilities Claims ono Private Sector Commercial Banks Nsarl-Book Financial Noni-Booking Demand Time & Sav. Ilostitutions, Time Financial Country and Year Carrency Deposits Deposits Accoants and Bonds Banks I nstitutions Developed Countries United States ........1960 5.9 22.8 13.9 20.7 24.0 19.4 1965 5.5 20.0 20.6 25.2 29.5 24.9 1968 5.1 18.6 22.5 24.2 30.8 24.0 United Kingdom ......~1960 8.2 27.5 11.9 11.5 17.8 17.6 1965 7.5 22.5 11.2 14.6 20.3 18.6 1968 6.9 11]7 12.9 18.3 19.9 22.7 France ...........1960 13.7 14.4 3.0 14.7 21.0 12.2 1965 13.6 17.8 4.1 20.4 24.8 18.4 1968 12.0 17.8 8.2 25.3 30.7 24.6 Japan ...........1960 7.2 16.0 58.3 28.7 58.6 25.4 1965 7.1 25.2 47.4 27.1 85.9 29.6 1968 7.0 22.6 46.9 27.9 82.3 28.1 Developing Countries Africa Ghana..... ........1960 9.1 5.5 2.7 1.1 4.2 -. 1965 7.2 7.7 3.7 0.6 7.8 1968 6.0 6.3 4.5 0.4 7.8 - Malagasy Republic... 1960 - - - - 1965 9.4 7.1 1.0 0.8 16.9 1.0 1968 10.2 7.5 2.2 0.8 19.7 1.4 Malawi ...... ...1960 - - - - .-. - 1965 6.5 8.0 4.6 2.9 7.8 0.9 1968 6.1 7.7 5.4 3.6 10.2 1.3 United Arab Republic ....1960 15.1 11.3 5.4 0.3 16.9 3.9 1965 20.5 9.0 8.9 0.9 15.0 4.1 1968 18.3 10.2 8.9 0.8 14.3 4.5 Asia China...........1960 4.3 4.6 7.5 2.4 8.9 1.9 1965 5.1 8.0 16.3 6.1 19.7 4.9 1968 5.6 8.9 20.0 6.1 24.9 3.9 India ....... ..1960 14.0 5.3 8.2 2.4 8.9 1.1 1965 13.1 6.4 7.3 3.5 10.7 1.8 1968 9.8 5.6 7.3 2.9 10.1 2.1 Korea...........1960 5.8 4.8 2.2 .-- 10.4 6.6 1965 4.0 3.4 4.8 .-9.8 4.8 1968 5.3 4.8 16.5 21.3 5.5 Pakistan .........1960 13.2 6.1 3.5 1.6 6.2 - 1965 11.3 7.1 6.3 1.6 14.1 0.9 1968 9.8 6.7 9.0 1.3 14.9 0.8 Philippines ..... ..1960 7.7 5.7 8.3 2.8 14.0 4.4 1965 6.5 5.2 10.6 3.1 18.9 6.0 1968 6.1 5.8 15.5 5.5 22.0 8.1 Middle East Iran ......... 1960 4.4 6.4 4.3 0.3 13.4 3.4 1965 4.6 6.7 8.5 0.7 19.3 3.8 1968 4.7 7.8 11.9 0.9 24.4 5.0 Israel .. ... 1960 6.5 12.6 7.8 0.4 18.8 - 1965 6.0 11.4 8.0 7.1 12.7 12.9 1968 7.7 12.7 19.9 12.7 21.8 12.8 Southern Europe Cyprus ....... ...1960 8.2 9.0 27.2 - 35.5 - 1965 8.8 9.5 32.1 4.4 35.7 3.6 1968 8.S 9.7 35.2 5.1 40.3 5.7 Greece...........1960 10.2 3.5 9.9 1.0 13.7 11.3 1965 13.5 3.5 13.4 1.6 16.6 12.1 1968 15.1 3.8 18.7 1.8 20.0 13.6 Spain. .1960 12.2 20.4 30.1 3.8 37.0 7.4 1965 11.7 22.2 37.8 1.9 SO.1 8.7 1968 12.3 23.1 46.4 1.3 60.7 10.8 (centinued) 69 Financial Indicators for Selected Countries, Table 3 1960, 1965 and 1968 (continued) (Percentages of GDP) Monetary Liabilities Financial Liabilities Claims on Private Sector Commercial Banks Non-Bank Financial Non-Banking Demand Time&Sav. Institutions, Time Financial Country and Year Currency Deposits Deposits Accounts and Bonds Banks Institutions Developing Countries (cont.) Southern Europe Yugoslavia ............... 1960 6.7 11.1 12.0 - 29.1 - 1965 6.5 17.6 13.3 5.7 35.9 67.6 1968 8.5 14.1 18.5 16.4 35.9 89.3 Western Hemisphere Argentina . . 1960 10.9 11.8 6.2 0.1 14.8 3.9 1965 9.2 9.1 7.2 0.7 13.3 1.8 1968 9.8 12.8 8.7 1.8 18.6 2.6 Brazil . . .1960 6.1 16.2 1.1 - 20.5 - 1965 4.7 16.7 0.6 2.7 14.8 3.7 1968 4.2 14.2 1.0 7.5 19.2 9.0 Colombia ................ 1960 6.1 8.8 2.2 5.3 11.6 9.2 1965 6.0 9.1 2.4 2.7 11.9 7.8 1968 5.7 9.2 2.4 3.5 11.7 8.9 Costa Rica . . 1960 6.9 8.3 4.5 1.1 21.8 5.9 1965 6.0 9.1 4.0 2.8 20.8 8.9 1968 6.1 11.4 4.4 2.5 18.2 8.1 Guatemala ........ ...... . 1960 5.9 4.1 3.0 0.4 7.7 2.4 1965 5.8 4.2 6.2 1.4 10.9 1.6 1968 5.3 4.2 8!1 0.3 12.4 1.6 Honduras . . 1960 4.8 3.3 2.7 2.3 5.8 3.0 1965 4.7 4.8 4.4 2.1 7.8 5.1 1968 4.6 5.4 6.8 1.2 12.2 6.9 Mexico . . 1960 5.2 5.9 1.7 8.2 4.6 17.7 1965 5.0 6.7 2.8 15.1 5.8 20.5 1968 5.0 7.1 3.1 19.1 6.2 25.0 Venezuela ................ 1960 5.8 8.0 6.6 - 15.7 1965 4.2 8.2 7.5 1.4 15.8 1.5 1968 4.4 8.8 8.4 2.2 16.5 2.2 Explanatory Notes: Currency consists of coins and notes in circulation outside banks. Commercial banks are institutions offeri ng dema nd deposit facilities availa ble for payment a nd tra nsfer through checks. I ncludes ordinary commercial banks, the commercial department of the central bank and in certain countries, so-called savings banks, where either they have large demand deposits or their savings deposits appear to be regarded by the holders as money. Demand depoosits include deposit liabilities due by commercial banks to depositors other than banks and governments, and subject to withdrawal and transfer by check. Time and savings de,posits include balances due by commercial banks through passbook or certificate transferable into demand deposits, but not available for paymevts outside banks. Anno-banking financial institutions are financial intermediaries which acquire their resources through acceptance of deposits by passbook or the issuance of credit instruments (promissory notes and bonds), butwhich do not carry checking accounts. These are largely specialized institutions such as cooperative banks, development banks, mortgage banks and post office savings institutions. Claims include loans as well as investments. For this table, claims of banks and non-banking financial institutions are limited to those on the private sector, in order to provide a measure of the intermediation of the financial system with respect to supply and demand of funds in the private sector. Sources: Data based on monetary, banking and other financial institutions' statistics provided by the International Financial Statistics of the IMF, except for adjustments based on statistical information available from World Bank sources in the cases of Ghana, Guatemala, Honduras, Mexico, United Arab Republic, and Yugoslavia, and for Brazil and India, for which data have been obtained primarily from World Bank sources. 70 The Flow of Financial Resources from DAC Countries(') Table 4 to Developing Countries and Multilateral Institutions, 1964-1969 -Analytical Summary (Billions of US dollars) 1964 1965 1966 1967 1968 1969(P) Net Disbursements Total, Official and Private ................ ............ 9.14 10.41 10.35 11.31 13.19 13.30 Total Official . ............... .................. 5.94 6.24 6.52 7.08 7.14 7.25 Official Development Assistance . ........ ....... .... . 6.02 5.94 6.14 6.69 6.41 6.68 Grants(2) ............ ... .. .... ... .. 4.25 4.21 4.28 4.39 4.10 4.38 Loans and other Long-term Capital . ... ....... 1.76 1.72 1.86 2.30 2.31 2.30 Other Official Flows .. . ....... ..... ....... ....... -0.07 0.30 0.38 0.40 0.73 0.57 Total Private ......... ...... ..... 3.20 4.17 3.83 4.22 6.06 6.05 Direct and Portfolio Investment ................ ... 2.34 3.42 2.70 3.22 4.46 4.31 Private Export Credits . ...... ............ ....... 0.86 0.75 1.12 1.01 1.59 1.73 Volume Indicators (Net Disbursements) Total Flow as Share of GNP (%) ..................... 0.75 0.78 0.71 0.73 0.79 0.72 Total Official Flow as Share of GNP (o%) . ..... .... 0.49 0.48 0.45 0.46 0.43 0.39 Official Development Assistance as Share of GNP (%). .. 0.49 0.44 0.42 0.43 0.38 0.36 Private Flow as Share of GNP (%) . ......... .... .... 0.26 0.31 0.26 0.27 0.36 0.33 Terms Indicators (Commitments) Grants as a Share of Total Official Commitments (%) .... 60.2 60.9 62.2 56.1 51.4 59.0 Weighted Average Maturity of Official Loans (years) ...... 28.6 22.6 25.1 24.0 26.0 24.3 Weighted Average Grace Period of Official Loans (years) ... 6.5 4.6 5.8 5.5 6.0 6.1 Weighted Average Interest Rate of Official Loans (%) ....... 3.1 3.6 3.1 3.8 3.6 3.5 Grant Element of Total Official Commitments (%)(3) .. .... 82 77 81 76 75 (79) (') Australia, Austria, Belgium, Canada, Denmark, France, Germany, Italy, Japan, Netherlands, Norway, Portugal, Sweden, Switzerland, United Kingdom, and United States. ?) Including "grant-like" flows denominated in recipients' currencies and contributions to multilateral institutions. i') Discounted at 10%. (P) Preliminary Note: Items may not add to totals due to rounding. Source: OECD. External Public Debt Outstanding and Debt Service Table 5 Payments of 81 Developing Countries('), 1965-1968 (Millions of US dollars) East Middle South Southern Western Total Africa Asia East Asia(') Europe Hemisphere(') Debt Outstanding Dec. 31 1965 .......... ..... 37,776 6,284 4,167 2,428 8,528 4,126 12,243 1966 ........ ..... 42,698 7,349 4,632 3,149 10,147 4,328 13,093 1967 .... ...... 47,934 8,058 5,480 3,866 10,766 5,056 14,708 1968-Total .... ..... ... 53,363 8,719 5,950 4,456 11,981 5,526 16,731 -Disbursed ......... . 39,958 6,942 4,770 3,233 9,153 3,949 11,911 -Undisbursed(41 . ... 13,405 1,777 1,180 1,223 2,828 1,577 4,820 Service Payments During 1965 .. 3,388 468 194 285 355 436 1,652 1966. . 3,897 474 225 358 428 440 1,970 1967 ....... 4,162 472 273 315 514 438 2,150 1968 .... .. ..... 4,673 625 310 411 540 488 2,298 (l) Includes 81 countries as follows: Africa: Botswana, Burundi, Cameroon, Central African Republic, Chad, Democratic Rep. of Congo, Dahomey, East African Commu- nity, Ethiopia, Gabon, Ghana, Guinea, Ivory Coast, Kenya, Lesotho, Liberia, Malagasy Republic, Malawi, Mali, Mauritania, Mauritius, Morocco, Niger, Nigeria. Rhodesia, Rwanda, Senegal, Sierra Leone, Somalia, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, United Arab Republic, Upper Volta, Zambia. East Asia: China, Indonesia, Korea, Malaysia, Philippines, Singapore, Thailand. Middle East: Iran, Iraq, Israel, Jordan, Lebanon, Syria. South Asia: Afghanistan, Ceylon, India, Pakistan. Southern Europe: Cyprus, Greece, Malta, Spain, Turkey, Yugoslavia. Western Hemisphere: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay, Venezuela. (O) Does not include suppliers' credits of India. (1) For Brazil includes private debt and excludes undisbursed amounts. (4) Due to a lack of information on amounts undisbursed for Ghana, Indonesia, Israel and Lebanon, the entire amount outstanding is considered as disbursed. Note: Items may not add to totals due to rounding. Source: World Bank. 71 14External Public Debt Outstanding of 81 Developing Table 6 Service Payments on External Public Debt Table 7 Countries by Country, December 31, 1968 as Percentage of Exports of Goods and Services, 1965-1968 (Millions of US dollnrs) (Percentages) Disbursed only including und isbursed Country 1965 1966 1967 1968 Exonrt Other I nternational Cou ntry Total Total financing private organizntions Governments Af rica Africa Botswana(') ..... ....... 3.6 3.6 5.7 4.2 Botswana.............. 10.9 10.9 - 1.3 3.6 6.0 BurundiG) ............. n.a. n.a. n.a. 3.5 Burundi............... 6.0 6.7 1.3 - 4.2 1.2 Central African Republic ..... na. n.a. n.a. 2.6 Cameroon ....... ...... 80.3 135.2 0.7 - 32.1 101.8 Chad................ n.a. n.a. n.a. 5.0 Central African Republic . 21.9 22.3 1.8 - 0.2 20.3 ~~~~~~~~~~~Ethiopia .............. 4.8 7.1 9.4 9.3 Centrl AficanRepubic .......... 21.9 22.3 1.8 -0.2 0.3 abon .......G..bo...5..0.4.6.04.9 494.9 Chad................ 28.0 44.6 8.1 1.9 7.1 27.4 Ghana ............... 18.6 5.5 5.8 12.3 Congo, Dem. Rep. of ........ 375.5 414.3 11.2 4.5 8.6 330.0 Guinea............... n.a. n.a. n.a. 7.9 Dahomey .............. 40.2 41.1 10.0 0.1 - 31.1 IvrCos............ na na6658 East African Community ....... 176.1 194.6 0.8 82,1 61.7 49.9 Ivorya2 Cos.n.an.a.6..5. Ethiopia............... 135.3 236.5 28.0 . 85.3 123.2 Lesoth(3). ........5.6 5.7 6.8 6.9(P) Gabon ..... ........ 62.4 73.6 9.2 5.6 24.0 34.7 Lsto3..... ...... n.a. n.a. 1.7 n.a. Ghana(li.554.4 637.9 303.3 - 66.5 268.0 ~~~~~~~~~~~~ ~~~~Liberia .............. 8.6 6.0 6.0 6.8 Guinea()............. . 2224.3 6319. 313.5 64.5 223.1 Malagasy Republic(')... ... n.a. 3.7 4.8 5.2 Guiea .................... 22.3 19. 315 - 64. 22.1 Malawi ............. n.a. n.a. 6.9 7.0 Ivory Coast...... ........ 186.5 341.0 118.3 23.3 6.5 192.9 MaliC4) ....... . ....... n.a. n.a. 10.1 13.7 Kenya ............... 254.6 343.2 52.2 13.7 51.2 226.1 Mauritania ............. n.a. n.a. 1.5 n.a. Lesotho............... 6.4 7.2 0.6 - 4.1 2.5 Mauritius.............. 2.3 3.2 3.7 6.5 Liberia ............. 158.6 169.0 44.0 - 4.3 120.7 Moco..... ...... 49737479P Malagasy Republic ......... 82.7 115.2 0.1 4.9 22.8 87.3 Mogrocco.4.9...........7..3 7.4 57 .9(P) Malawi ............... 67.6 101.3 1.2 16.8 27.5 55.8 Nigeria('...........3n.3 5.4 35. 6.3(P Mali ............... 172.5 213.7 2.6 9.1 202.0 Rada'na.na3529 Mauritania ............. 26.0 43.7 0.8 9.8 6.7 26.3 Senegal .............. 1.4 1.8 1.8 1.7 Maurtiu .................... 30.6 31. 2.5 6.6 6.2 5.8 Sierra Leone ............ 5.3 6.4 8.0 5.2 Mauritius.30.6 31.1 2.5 6.6 6.2 15.8 ~~~~~~~~~~~~ ~ ~~~~Somalia .............. n.a. 2.0 2.0 1.8(P) Morocco .......... .... 566.5 701.3 72.4 38.0 82.0 508.9 Sudan(4)...................5.8 6.4 5.6 7.5 Niger ... ............ 12.7 35.9 11.2 - 7.6 17.1 Nigeria.~~~~~~ ~~~421.3 587.3 16.2 97.4 223.1 250.5 Twanzna(xlazi baand('..... 11.7 39. 9.0 9.4 Rhodesia .............. 220.9 220.9 2.9 121.3 52.8 43.9 Tnai ec.Znia)2 .. . . . Rwanda............... 1.9 2.4 0.2 - - 2.2 Tunisia............... 7.7 14.9 21.2 24.0 Senegal............... 59.7 81.5 - 0.2 13.0 68.3 Uganda(2) ...... ......... 5.8 4.5 5.4 8.0(P) Sierra Leone............. 53.2 61.2 20.4 6.7 7.4 26.6 Zambia............... 4.2 2.1 2.3 2.6(P) Somalia ..... ... .... 54.5 79.4 .. - 8.5 70.9 Sudan ............... 234.6 309.1 33.7 2.7 138.9 133.8 Swaziland.............. 37.3 39.9 14.3 - 9.3 16.4 Southern Europe Tanzania .............. 131.5 209.8 23.6 21.0 31.8 133.5 Cyprus............. 1.4 1.4 2.2 1.8 Togo ................ 30.1 37.4 4.2 - 3.7 29.5 Greece .............. 4.1 4.5 5.6 5.5 Tunisia............... 450.9 611.3 163.1 2.6 68.7 376.8 Malta ............... 0.5 0.8 1.1 1.2 Uganda .............. 101.2 148.6 5.0 19.6 28.3 95.6 Spain .........-.... 2.0 1.7 1.6 2.2 United Arab Republic ........1,491.2 1,721.7 n.a. n.a. n.a. n.a. Turkey ............-, n.a. 15.9 14.1 13.2(P) Upper Volta............. 17.7 20.1 0.7 - - 19.4 Yugoslavia ............. 14.4 13.7 12.9 14.0 Zambia............... 189.4 264.3 69.5 45.7 78.0 71.2 East Asia Middle East China................ 639.1 842.1 131.4 - 167.9 542.9 1 ran(3) . 5.8 5.0 5.1 6.9(p)(5) I ndonesial)).............2,452.0 2,984.8 262.8 195.3 67.0 2,459.7 Iraq..........-.... n.a. 0.8 0.9 1.4(P) Korea ...... ......... 970.2 1,597.8 1,080.9 - 40.3 476.5 Jordan .............. 1.0 1.3 1.5 1.8 Malaysia...............291.0 460.3 12.1 66.2 202.4 179.6 Syria') ...... ......... 11.3 11.C 14.2 18.7 Philippines........... 417.1 . 493.2 200.8 12.6 131.1 148.7 South Asia Singapore ............. 41.0 80.0 1.2 - 75.9 2.8 Ceylon ...... ..... .. 2.0 2.8 3.5 6.9 Thailand .............. 246.7 311.3 20.5 - 201.5 89.4 I ndia(3) (') ... ....... 13.7 18.2 19.0 16.8 Middle East Pakistan ....... ...... 11.0 13.1 16.8 19.4(P) I ran ....... ........ 829.9 1,932.3 672.8 .- 223.1 1,036.4 East Asia Iraq ................ 233.1 254.5 34.8 - 23.0 196.7 China.............. 2.9 3.6 3.2 3.4 Israel................1,807.3 1,807.3(2) 636.1 802.4 85.2 283.6 Indonesia .... . .... 10.3 8.3 7.0 8.6(P) Jordan ............... 93.2 150.5 - - 10.0 140.5 Korea ..... .... .... 2.7 3.6 5.6 7.5 Lebanon(').............. 59.9 95.9 18.2 - 19.7 58.0 Malaysia ........ .... 1.2 1.4 2.1 2.1 Syria ............... 216.8 258.9 57.8 - 8.5 192.6 Philippines............. 5.3 6.3 7.2 5.3 Singapore ...... ........ 0.1 0.1 0.1 0.2(P) South Asia Thailand ............. 3.2 2.9 3.7 3.5 Afghaniistan ............ 476.1 648.9 - - 3.5 645.4 Ceylon ............... 203.9 336.7 62.5 7.3 46.2 220.6 Western Hemisphere I ndia(a) .............. 6,201.4 1,133.5 115.1 3.9 1,639.0 5,915.5 Argentina ............ 20.5 25.5 27.0 27.8 Pakistan ............. 2,271.1 3,261.1 270.6 - 778.2 2,212.3 Bolivia ..... ... ..... 4.7 4.8 5.8 5.4(P) Brazil(G) ...... ... .. 21.5 n.a. n.a. 22.5 Southern Europe Chile ....... . 15.4 13.2 12.4 16.4(P) Cyprus ............... 22.3 28.9 0.9 2.2 17.2 8.6 Colombia ... .. ....14.4 16.5 13.9 12.9 Greece ... ........ .. 546.2 612.4 170.3 184.3 81.4 176.4 Costa Rica...-.. ......8.3 10.3 9.7 10.1(P) Malta ............... 18.5 18.5 - - 5.2 13.3 Dominican Republic......... 18.6 11.8 7.9 9.5 Spain................ 761.3 1,153.3 313.8 20.2 202.6 616.6 Ecuador....... . ..... 6.2 6.3 6,2 8.1(P) Turkey ...............1,451.9 1,963.0 63.5 19.9 388.0 1,491.6 El Salvador .. .. ....... 3.6 3.7 2.6 2.8 Yugoslavia .............1,148.5 1,749.7 373.9 33.2 316.2 1,026.4 Guatemala ...... ....... 5.1 5.4 9.6 7.4 Guyana....... ......... n.a. 4.6 4.0 4.6 Western Hemisphere Honduras....... .... ... 2.5 2.1 2.0 1.7(P) Argentina ... ....... ..1,714.1 2,221.1 1,043.0 298.5 384.9 494.7 Jamaica ......... .. . 3.2 3.4 4.2 2.8(P) Bolivia ............... 295.0 359.7 38.0 67.4 25.8 228.5 Mexico...... ....... . 23.6 24.0 24.8 26.8 Brazil(4) ..... ........ 2,736.5 4,310.1 1,095.0 414.2(a 749.8 2,051.1 Nicaragua.... ... . 4.2 5.2 6.0 6.9(P) Chile ............... 1,268.5 1,842.9 334.8 173.9 238.1 1,095.5 Panama....... . ....3.5 2.7 2.6 3.6 Colombia ..... . ...... 947.1 1,296.9 184.1 26.2 539.6 547.0 Paraguay............ . 6.7 5.5 7.2 8.1 Costa Rica ...... ....... 122.0 162.3 30.5 14.9 64.5 52.4 Peru. . ............. n.a. n.a. 10.6 20.9 Dominican Republic ......... 171.6 220.8 22.7 - 4.1 194.0 Trinidad and Tobago....-... 3.4 2.8 2.8 3.3 Ecuador. . .... . . .. 163.1 274.3 91.3 3.6 71.1 108.3 Uruguay....... ........ 6.7 11.7 20.6 19.5 El Salvador ............ 77.2 102.6 11.9 1.0 50.0 39.8 Venezuela ...... .. ..... 2.0 2.4 1.8 2.2 Guatemala ............. 89.8 161.2 34.1 30.7 54.2 42.2 Guyana............... 54.4 84.2 1.0 7.8 5.2 70.3 n.a. Signifies that data are aot avaifable on debt service, expart earnings, or both. Honduras ......... .... 51.2 114.1 5.9 - 79.5 28.7 (1) Exports of goods only. (2) Includes one third of dobts contracted by the East African Commonity. Jamaica ..... ...... .. 114.7 151.7 18.0 68.5 37.0 28.1 (3) Fiscal year ending March sf the following year. Mexico .... .. .......2,438.5 3,047.9 1,275.6 394.6 827.5 550.1 (4) Fiscal year ending Jose of the foiiowoing year. Nicaragua .... ... .... 110.8 213.2 12.5 - 67.4 73.3 (s) Projected. Panama ....... ....... 89.9 112.5 0.6 30.7 11.8 69.4 (6) Includes debt service on private deht; comparable data not available for 1966 and 1967. Paraguay ........... .. 76.1 101.1 21.0 0.3 39.2 40.6 (7) Does not iociode service payments on suppliers' credits. Peru . ............ ..... 672.7 1,018.9 514.5 39.5 186.6 21 8.2 (P) Preliminary. Trinidad and Tobago ...... . 69.1 106.4 19.9 10.8 41 .4 34.3 Source: Warld Bank and IMr. Uruguay ................... 250.0 309.1 96.2 23.8 90.9 98.1 Venezuela...... ........ 398.5 519.7 63.5 37.0 279.8 139.4 ()As of December 31, 1969. (2) Undisbursed amount is sat available. (3) Exclades suppliers' credits. (4) n cl ud es d ebt ot p r ivate secto r. (5) Includes some lnans from governments. Note: Items may noaf add to totals due ts roanding. t~Souirce: World Basik. ! External Public Debt Incurred and Grants Received by Selected Developing Countries, Table 8 by Sources and Terms, 1965-1968 Average Percentage distribution by sources and terms Amount of (million dollars)(') Official donors and creditors Private creditors Region and Loans from governments Loans from country international Export Other governments organizations financing Loans Grants Total loans Eastern Up to Over 21 40 yrs. Up to Over Other contracted received and grants Grants Bloc 21 yrs. to 39 yrs. & over IDA Other 6 yrs. 6 yrs. private Africa Botswana ................. 0.7 13.1 13.8 94.6 - 5.4 - -- Burundi .................. 10.0 6.6 16.6 87.0 - 4.5 - - 3.6 - - 4.9 Cameroon .................. 16.5 13.3 29.8 44.7 - 26.4 - 3.2 9.7 15.4 0.7 - Central African Republic ..... 3.0 7.7 10.7 71.8 22.4 0.8 - - --- 2.6 3.6 - Chad ............ ...... 6.9 9.6 16.5 58.1 - 11.3 2.4 8.9 1.8 3.5 11.2 2.7 Congo, Dem. Rep. of .... ,, 108.0 79.4 187.4 42.4 - 5.8 8.8 32.4 - - 3.4 6.7 0.6 Dahomey .................. 3.1 9.6 12.7 75.4 - 1.8 0.7 1.7 - 4.2 16.2 - East African Community .... 19.2 - 19.2 - 9.9 1.8 - - 66.4 - - 21.9 Ethiopia .................. 34.5 20.6 55.1 37.4 1.8 12.1 8.3 16.5 6.8 8.3 1.4 7.5 - Gabon ......... ......... 6.8 7.3 14.1 51.7 -- 26.0 - - 3.9 14.1 4.2 Guinea .................. 61.0 5.6 66.6 8.5 44.2 3.2 4.1 2.3 - 24.8 3.2 9.7 - Ivory Coast ......... ....... 56.0 8.2 64.2 12.8 - 40.5 5.9 1.9 - 2.7 5.1 26.3 4.7 Kenya .......... ........ 47.0 29.2 76.2 38.3 0.2 5.9 35.8 2.8 11.6 0.8 0.1 4.3 0.3 Lesotho .................. 1.4 10.9 12.3 88.2 - - 2.3 - 8.3 - - 1.2 Liberia .................. 6.1 12.0 18.1 66.2 2.9 1.1 17.8 - - 12.0 - Malagasy Republic .......... 11.3 19.0 30.3 62.6 --- 11.7 - 3.9 12.0 6.9 - - 3.0 Malawi .... .... 16.7 22.9 39.6 57.8 - 4.1 20.4 0.1 17.4 -- 0.1 (2) Mali ........ ......... 5.8 8.0 13.8 57.8 17.7 -- 1.9 1.6 16.5 - 1.5 3.0 - Mauritania .... .... 9.1 4.4 13.5 32.8 9.3 9.1 - 11.0 - 2.4 17.1 18.2 Mauritius ................. 3.0 2.2 5.2 42.3 - 6.7 39.0 - - - 12.0 - Morocco ................. 113.4 51.8 165.2 31.3 3.2 35.1 8.8 2.9 1.7 6.4 0.3 10.3 Niger ....... .......... 7.2 11.2 18.4 60.7 -- 11.9 4.9 8.3 - 6.8 7.4 Nigeria ... ....... 67.5 39.1 106.6 36.7 0.8 25.6 7.2 8.3 10.9 1.7 8.8 Rhodesia ................. 1.8 2.3 4.1 57.2 _ 42.8 (2) - - - - - Rwanda . . ... 0.9 9.4 10.3 91.1 - 2.7 0.9 - - - 5.3 -- - Senegal ................. 12.2 20.7 32.9 63.0 5.1 13.7 7.3 1.0 6.8 3.0 - -- Sierra Leone ................ 5.0 6.1 11.1 55.2 5.1 13.2 - - 8.9 0.3 17.3 Somalia .............. ... 7.4 15.3 23.7 67.5 0.7 8.3 - 14.2 9.4 - - - Sudan .......... 42.1 8.6 50.7 17.0 0.3 32.8 1.3 3.6 4.2 29.6 4.9 6.5 Swaziland ................. 1.7 8.1 9.8 82.6 - 0.7 9.7 - - 7.0 - - - Tanzania ................. 25.1 25.5 50.6 50.4 4.0 13.5 4.8 9.9 4.0 2.6 1.5 9.0 0.4 Togo . ................. 2.6 7.3 9.9 73.8 - 5.6 3.6 - 9.3 - 5.7 2.0 - Tunisia .. ............ 103.1 48.2 151.3 31.9 0.6 18.3 6.3 11.7 3.1 6.3 9.1 12.8 - Uganda ........ ......... 16.2 12.3 28.5 43.2 0.7 7.3 20.5 5.0 18.7 0.1 - - 4.4 United Arab Republic ........ 129.7 58.0 187.7 30.9 11.6 26.7 2.0 - -- 14.6 13.9 0.4 Upper Volta ................ 2.5 9.3 11.8 78.8 - 19.0 1.6 - - - 0.6 - - Zambia ........... ... 33.1 27.2 60.3 45.1 2.3 13.5 1.1 - - 13.9 .1 5.4 18.7 East Asia China . ............. 115.7 23.8 139.5 17.1 - 30.0 0.5 - 25.9 9.0 17.0 0.5 Korea . ............. 359.3 156.9 516.2 30.4 - 7.4 (2) 11.4 0.7 0.6 15.7 33.9 - Malaysia . ........... 77.6 1.5 79.1 1.8 - 23.6 14.8 - - 38.3 - 5.6 15.8 Philippines . .......... 95.5 65.1 160.6 40.5 - 2.0 4.7 - 6.5 39.1 4.9 2.3 Singapore . ................. 16.3 3.8 20.1 19.1 - - - - 79.4 - 1.5 - Thailand .................. 43.1 40.0 83.1 48.2 - 9.0 7.3 1.3 - 34.0 - 0.3 - Middle East Iran .................. 403.2 11.5 414.7 2.8 32.5 17.7 0.6 - - 7.4 2.1 36.7 0.3 Iraq .................. 19.6 3.7 23.3 15.9 - 7.7 - - - - 24.7 14.9 36.9 - Jordan .................. 16.3 60.5 76.8 78.8 - 6.3 10.3 3.7 1.0 - - - Lebanon . ........ .. 6.9 8.2 15.1 54.4 - 45.7 - - - - - Syria . ............. 37.9 4.9 42.8 11.4 48.3 0.9 - - - 4.4 35.0 South Asia Afghanistan . .......... 47.9 34.6 82.5 42.0 39.1 4.8 5.8 8.3 - - - - Ceylon ............... .. 62.3 11.6 73.9 15.7 8.3 22.8 23.0 1.6 0.7 3.7 6.1 18.2 - India .................. 808.0 612.3 1,420.3 43.1 0.3 7.6 10.6 24.1 9.4 3.3 0.9 0.7 - Pakistan ................. 461.6 180.5 642.1 28.1 7.9 12.0 6.9 21.8 4.8 7.9 1.4 9.4 - Southern Europe Cyprus ........ ....... 0.9 2.6 3.5 75.3 4.6 - - - - 20.1 - - - Greece .................. 72.1 2.6 74.7 3.5 1.9 19.1 0.3 - - 18.8 23.0 23.7 9.7 Malta .................. 2.2 13.9 16.1 86.5 - - 13.5 - - - Spain .................. 223.6 3.1 226.7 1.4 - 49.2 - 11.7 24.2 11.4 2.2 Turkey ............ ...... 288.1 14.9 303.0 4.9 - 17.2 11.7 38.4 2.1 22.8 0.6 2.4 - Yugoslavia ....... 247.0 33.1 280.1 11.8 36.7 31.8 - - - 8.2 1.6 9.6 0.2 Western Hemisphere Argentina . ......... 436.4 7.5 443.9 1.7 0.4 13.6 - 0.2 - 12.8 28.7 22.9 19.8 Bolivia . . 32.1 19.4 51.5 37.8 - 26.8 4.8 16.2 1.0 - 3.6 7.2 2.7 Chile ................. 301.6 25.3 326.9 7.8 1.3 28.2 1.2 20.5 - 8.2 6.9 18.0 7.9 Colombia ................. 183.7 21.8 205.5 10.6 - 10.1 0.4 30.0 - 25.4 12.0 11.6 Costa Rica ................. 19.1 6.6 25.7 25.7 - 6.9 0.5 13.9 - 17.5 20.2 1.1 14.1 Dominican Republic ......... 36.5 33.9 70.4 48.1 - 11.2 1.8 36.8 - - 0.7 1.4 - Ecuador ................. 41.7 13.2 54.9 23.8 2.6 14.1 2.2 3.8 2.3 5.3 6.2 39.7 El Salvador ................. 10.8 8.4 19.2 43.8 - 7.0 7.8 7.1 -- 15.2 19.1 - Guatemala .......... .. 28.9 10.2 39.1 26.0 2.7 - 10.1 - 27.2 3.8 1.7 28.4 Guyana ................. 10.5 7.1 17.6 40.5 - - - 20.2 32.1 - 7.1 - - - Honduras ................. 19.7 4.8 24.5 19.6 3.5 - 17.7 7.7 47.4 0.5 3.6 Jamaica ........... ... . 27.4 4.4 31.8 13.9 2.4 5.0 3.5 - 37.9 10.7 3.5 23.2 Mexico ....... ..... .... 584.9 10.5 595.4 1.8 (2) 10.2 0.9 (2) - 19.8 33.1 16.0 18.2 Nicaragua .... . 40.9 6.0 46.9 12.8 - 4.1 - 29.4 - 22.4 27.5 3.3 0.5 Panama ............. 10.7 9.1 19.8 51.8 - 5.7 24.7 16.5 - 1.4 - - - Paraguay .... .. 14.0 4.3 18.3 23.4 (2) 10.4 1.0 16.8 10.2 10.3 4.4 23.4 0.1 Peru ....... ... 208.8 26.5 235.3 11.2 - 7.4 - 4.0 - 11.6 29.6 32.6 3.6 Trinidad and Tobago . 13.8 7.7 21.5 35.7 - 19.9 3.4 8.5 - 26.7 - 5.9 Uruguay ........_........ 34.9 4.6 39.5 11.5 - 12.4 14.4 13.2 - 18.5 17.5 12.4 Venezuela ................ 68.9 17.9 86.8 20.6 - 15.7 _ _ 29.2 16.8 4.7 13.0 (1) Grants consist of grants and grant-like contributions by DAC countries and multilateral agencies os compiled by OECD. Loans are commitments (2) Less than 0.05%. for which repayment terms were reported to IBRD by its member countries. The percentages in this table apply to these loans. The figures Note: Consistent data not available for this period for Brazil, Ghana and Indonesia. for loans do not include commitments for which repayment terms are unknown and do not take account of cancellations. Items may not add to totals due to rounding. Sources: World Bank and OECD. N Disbursements, Amortization, Interest, Net Flow and Net Transfer on Official Grants and Table 9 External Public Debt of Selected Developing Countries,(') 1965-1968 Average (Millions of US dollars) Official donors and creditors Private creditors Official and private Region and country Disbursements on Amortization Net Interest Net Disburse- Amorti- Net Net Net Net Grants Loans on loans flow on loans transfer ments zation flow Interest transfer flow transfer Africa Botswana .................. 13.6 1.8 0.1 15.2 0.2 15.0 - 0.2 -0.1 0.2 -0.3 15.1 14.7 Ethiopia ................... 23.2 21.0 5.1 39.2 2.0 37.2 7.8 4.3 3.4 1.2 2.2 42.7 39.5 Gabon ................... 9.3 5.2 2.3 11.6 1.9 9.8 2.7 0.9 1.8 0.4 1.5 13.5 11.3 Kenya ................... 29.3 31.4 4.8 55.8 6.4 49.4 3.5 2.6 0.9 4.1 -3.3 56.7 46.2 Liberia ................... 12.8 14.3 0.8 26.2 2.6 23.6 -0.7 3.7 -4.3 3.4 -7.7 21.9 15.9 Mauritius ................... 2.2 3.5 0.5 5.1 0.8 4.4 0.6 1.1 -0.5 0.9 -1.4 4.6 3.0 Morocco ................... 59.1 76.4 15.1 120.5 10.8 109.8 20.0 10.4 9.6 3.5 6.1 130.1 115.8 Nigeria ................... 41.4 68.4 7.1 102.6 7.2 95.5 20.0 19.4 0.7 4.9 -4.3 103.3 91.2 Senegal. . 36.6 2.8 2.4 37.0 1.0 35.9 - (2) (2) (2) (2) 37.0 35.9 Sudan ................... 7.0 30.2 4.8 32.3 4.8 27.5 5.7 4.2 1.4 1.9 -0.4 33.7 27.0 Tanzania ................... 25.4 14.5 1.1 38.9 1.9 36.9 5.5 2.4 3.1 2.0 1.2 41.9 38.0 Tunisia ....... ............ 44.4 55.6 7.5 92.6 4.3 88.3 40.5 21.3 19.2 5.9 13.3 111.8 101.6 Uganda ... ................ 13.2 8.9 1.2 21.0 3.0 18.1 1.1 1.3 -0.2 1.4 -1.6 20.9 16.5 Zambia ................... 25.7 8.0 5.7 28.0 5.0 23.0 12.0 4.3 7.7 3.5 4.2 35.7 27.2 Middle East Iran ................... 11.1 156.0 38.0 129.1 19.0 110.1 115.2 34.3 80.9 5.1 75.8 210.0 185.9 Iraq ................... 3.8 8.3 2.9 9.2 3.0 6.2 10.7 3.0 7.7 0.6 7.1 16.9 13.3 Jordan ................... 12.5 11.2 0.9 22.7 0.6 22.1 - - - - 22.7 22.1 East Asia China ................. .. 24.1 52.5 5.1 71.5 4.4 67.1 37.1 14.5 22.6 1.1 21.5 94.1 88.6 Korea ................... 155.2 65.2 1.4 218.9 1.9 217.1 181.2 22.7 158.5 5.6 152.9 377.4 369.9 Malaysia ................... 22.0 30.2 7.2 45.1 6.7 38.4 15.7 6.0 9.7 4.1 5.5 54.8 43.9 Philippines ................... 61.6 44.6 7.9 98.3 6.7 91.6 70.8 48.9 21.9 6.8 15.1 120.2 106.7 Singapore ................... 5.4 8.0 1.0 12.4 0.9 11.4 - - - - -- 12.4 11.4 Thailand ................... 45.0 35.4 9.6 70.9 8.8 62.1 0.4 13.7 --13.3 0.3 -13.6 57.6 48.4 South Asia Ceylon ................... 11.2 33.1 7.1 37.1 2.8 34.3 12.6 3.6 9.0 1.1 7.8 46.1 42.1 India(3) ................... 558.0 867.1 183.0 1,241.9 136.4 1,105.5 16.1 8.7 7.4 2.9 4.4 1,249.3 1,109.9 Pakistan ................... 185.4 373.4 45.2 513.5 35.3 478.3 60.5 19.4 41.1 4.4 36.7 554.7 515.0 Southern Europe Cyprus ............... .... 3.1 3.2 0.8 5.5 0.7 4.9 0.2 0.6 -0.4 0.9 --1.3 5.1 3.6 Greece ................. .. 5.1 36.9 10.8 31.3 6.7 24.6 36.0 16.2 19.8 8.3 11.5 51.1 36.1 Malta . , 13.9 3.7 0.4 17.3 0.6 16.6 - - - - - 17.3 16.6 Spain .................. 2.7 106.3 24.9 84.0 11.8 72.3 70.1 12.7 57.4 4.6 52.8 141.4 125.1 Turkey ........ .......... 25.2 211.4 76.3 160.3 25.8 134.5 2.1 14.0 -11.9 3.7 -15.6 148.4 118.9 Yugoslavia .................. 7.7 161.1 96.5 72.4 32.4 40.0 105.8 83.8 22.1 18.4 3.7 94.5 43.7 Western Hemisphere Argentina ............... 9.1 78.3 100.0 -22.6 35.1 -57.6 242.6 223.9 18.7 63.1 -44.4 -3.8 -102.0 Bolivia ................... 19.4 19.2 2.9 35.7 1.8 33.9 5.5 2.2 3.2 0.5 2.7 38.9 36.6 Chile ................... 31.6 130.8 38.5 123.9 22.5 101.4 80.7 61.5 19.2 13.9 5.3 143.1 106.7 Colombia ................... 25.6 120.8 36.8 109.7 18.8 90.8 52.4 41.6 10.8 5.8 5.0 120.5 95.9 Costa Rica ................... 7.1 13.7 3.7 17.1 2.8 14.3 9.5 8.1 1.4 1.8 -0.5 18.5 13.7 Dominican Republic ....... ... 34.5 29.8 3.7 60.6 1.5 59.1 2.7 12.3 -9.7 1.6 -11.3 50.9 47.8 Ecuador ................... 14.7 16.8 5.2 26.3 3.6 22.7 11.0 4.4 6.7 1.1 5.6 33.0 28.3 El Salvador ................... 9.2 11.8 3.6 17.3 1.9 15.4 2.7 1.2 1.4 0.3 1.2 18.7 16.6 Guatemala ................... 11.0 7.9 3.6 15.3 1.2 14.1 18.5 11.1 7.4 2.0 5.4 22.8 19.6 Guyana ................... 7.2 4.8 1.3 10.8 2.2 8.5 - 0.6 -0.6 1.1 -1.7 10.2 6.9 Honduras ................... 5.2 6.7 1.2 10.8 1.2 9.6 0.8 0.9 -- 0.2 -0.3 10.7 9.3 Jamaica ................... 5.1 8.1 0.4 12.8 0.6 12.2 10.8 3.6 7.2 4.8 2.4 20.0 14.5 Mexico ..... .............. 12.1 165.5 79.8 97.8 37.1 60.7 412.2 320.7 91.5 71.8 19.7 189.3 80.4 Nicaragua ................... 6.5 11.4 3.2 14.8 1.9 12.9 14.2 4.5 9.7 0.8 8.8 24.4 21.7 Panama ................... 9.8 9.4 2.9 16.3 1.9 14.4 - 0.7 -0.7 1.4 -2.0 15.6 12.4 Paraguay ................... 5.1 11.4 1.7 14.8 0.9 13.9 5.3 1.6 3.8 0.3 3.5 18.7 17.4 Peru .................. . 23.4 46.9 9.4 60.9 14.9 46.0 137.3 73.6 63.7 13.1 50.6 124.6 96.6 Trinidad and Tobago ....... 7.7 7.1 2.6 12.2 1.7 10.5 3.9 2.7 1.2 2.7 -1.4 13.5 9.1 Uruguay ................... 5.1 12.8 11.2 6.7 4.6 2.1 23.8 15.6 8.2 3.8 4.4 14.8 6.5 Venezuela .................. 21.8 69.6 28.5 62.9 8.7 54.3 25.4 11.8 13.6 2.6 11.0 76.6 65.3 u) Grants consist of grants and grant-like contributions by DAC countries and multilateral agencies as compiled by OECD. Data on loans derived from information reported to I BRO by its member countries. (2) Less than $50,000. (3) Excludiog suppliers' credits. Note: Items may not add to totals due to rounding. Sources: World Bank and OECD. =' Estimated Service Payments on Existing External Public Debt of 81 Developing Countries('), Table 10 1965-1968 Actual Payments, 1969-1980 Projected Payments, by Category of Indebtedness (Millions of US dollars) Region and category Actual Projected of indebtedness 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 Africa Loans from governments . ........ 170.0 180.6 174.3 251.9 387.9 444.1 452.1 445.1 419.4 397.7 388.4 357.7 334.2 307.4 279.5 254.6 Loans from international organizations . . ........... 46.8 48.1 54.0 63.5 66.5 81.3 88.8 91.2 95.2 97.6 86.6 84.7 84.8 77.8 76.6 73.8 Total official creditors ..... .......... 216.8 228.7 228.3 315.4 454.4 525.4 540.9 536.3 514.6 495.3 475.0 442.4 419.0 385.2 356.1 328.4 Export financing ..................... 128.5 145.7 176.8 206.2 215.9 242.7 216.2 189.7 153.7 128.7 104.3 83.5 62.4 53.4 35.8 26.1 Other private creditors . ...... 121.4 100.1 67.0 103.8 73.6 75.8 48.7 50.7 50.6 49.1 43.9 32.2 24.2 41.5 37.5 27.1 Total private creditors............... 249.9 245.8 243.8 310.0 289.5 318.5 264.9 240.4 204.3 177.8 148.2 115.6 86.7 94.9 73.3 53.2 Total Africa....................... 466.7 474.5 472.1 625.4 743.9 843.9 805.8 776.7 718.9 673.1 623.1 558.0 505.7 480.1 429.4 381.6 East Asia Loans from governments ........ .... 53.2 52.4 64.0 84.2 159.2 194.6 242.8 224.0 222.4 213.6 212.6 214.3 202.8 204.8 149.0 144.0 Loans from international organizations . ............. 19.5 22.6 27.9 37.5 44.9 58.8 69.0 77.8 79.8 75.6 75.2 75.9 74.7 71.8 68.0 66.6 Total official creditors ............... 72.7 75.0 91.9 121.7 204.1 253.4 311.7 301.8 302.2 289.2 287.8 290.2 277.5 276.6 217.0 210.6 Export financing . ............ 112.2 137.7 168.9 171.5 320.9 369.7 345.3 238.5 162.5 127.8 102.9 84.7 66.4 36.3 20.2 9.0 Other private creditors ............... 8.7 12.8 12.3 17.1 32.4 35.6 10.8 10.9 17.8 13.8 13.6 21.7 12.3 12.1 9.7 10.7 Total private creditors ............... 120.9 150.5 181.2 188.6 353.3 405.3 356.1 249.4 180.3 141.6 116.5 106.4 78.7 48.4 29.9 19.7 Total East Asia .......... ...... 193.6 225.5 273.1 310.3 557.4 658.6 667.8 551.1 482.5 430.9 404.4 396.6 356.2 325.0 246.9 230.3 Middle East Loans from governments . ........ 70.3 88.8 78.3 120.3 155.3 186.8 208.0 204.1 194.2 184.4 167.1 137.1 110.1 96.5 81.6 72.0 Loans from international organizations . ............ 15.5 19.3 24.4 28.6 30.9 36.4 37.7 38.8 37.9 37.3 37.0 33.5 26.6 26.6 26.6 25.4 Total official creditors ............... 85.8 108.1 102.7 148.9 186.2 223.3 245.7 242.8 232.1 221.6 204.1 170.5 136.7 123.1 108.3 97.4 Export financing ......... ........... 162.8 250.1 212.3 262.3 183.0 185.0 174.9 159.7 128.6 111.8 87.8 71.8 47.7 32.3 24.1 19.8 Other privatecreditors . . 36.6 - - - 140.6 88.5 62.8 63.6 65.6 56.2 38.5 81.2 88.1 96.8 213.8 131.2 Total private creditors ... ........... 199.4 250.1 212.3 262.3 323.7 273.5 237.7 223.3 194.2 168.0 126.3 153.0 135.8 129.1 237.9 151.0 Total Middle East ......... . 285.2 358.2 315.0 411.2 509.9 496.8 483.4 466.2 426.3 389.6 330.4 323.5 272.4 252.2 346.2 248.4 South Asia Loans from governments . ........ 227.9 294.0 368.9 367.1 464.0 493.2 517.9 539.0 546.5 545.3 561.8 539.7 525.1 515.7 456.8 423.3 Loans from international organizations ....................... 97.2 111.2 103.7 105.7 132.8 143.1 142.6 138.6 135.5 131.4 126.3 121.2 131.9 125.3 96.9 88.1 Total official creditors ............... 325.1 405.2 472.6 472.8 596.8 636.4 660.5 677.6 682.0 676.7 688.1 660.9 657.0 641.0 553.6 511.4 Export financing ...... .............. 26.7 21.9 40.1 66.1 67.0 77.7 82.6 70.1 62.3 46.8 39.2 32.4 25.2 13.7 7.9 3.0 Other private creditors ............... 2.8 1.2 1.2 1.0 6.3 7.9 7.5 8.3 7.8 6.4 10.1 5.5 5.4 4.8 3.6 3.5 Total private creditors ............... 29.5 23.1 41.3 67.1 73.3 85.6 90.2 78.4 70.1 53.3 49.3 37.9 30.6 18.5 11.5 6.5 Total South Asia ........ . 354.6 428.3 513.9 539.9 670.1 722.0 750.7 756.1 752.1 729.9 737.4 698.6 687.6 659.5 565.1 517.9 Southern Europe Loans from governments .............. . 218.5 ' 223.9 222.4 260.7 266.5 275.5 310.2 291.0 302.3 341.3 255.6 238.5 224.7 206.0 190.6 143.3 Loans from international organizations .62.9 57.6 46.4 56.0 76.6 116.4 95.9 90.0 77.3 77.9 78.5 77.5 74.0 70.9 67.7 65.7 Total official creditors .281.4 281.5 268.8 316.7 343.1 391.9 406.1 381.0 379.6 419.2 334.0 316.0 298.7 277.0 258.3 209.0 Export financing. ........ . .. 139.7 145.1 153.9 156.5 170.5 163.9 239.2 178.9 122.8 66.2 48.5 30.4 23.5 12.3 8.8 5.7 Other private creditors .15.0 13.3 15.6 15.2 13.1 14.2 12.1 11.1 11.8 10.1 9.5 9.2 8.8 10.4 10.2 10.0 Total private creditors .154.7 158.4 169.5 171.7 183.6 178.1 251.3 190.0 134.5 76.3 57.9 39.6 32.2 22.6 19.0 15.6 Total Southern Europe .436.1 439.9 438.3 488.4 526.7 569.9 657.3 571.0 514.1 495.5 392.0 355.6 330.9 299.6 277.3 224.7 Western Hemisphere Loans from governments .529.5 623.1 679.3 593.6 552.8 577.7 543.9 480.0 424.2 373.9 337.6 319.2 304.1 283.6 258.2 241.6 Loans from international organizations .143.2 181.1 214.8 230.7 325.3 282.3 300.4 317.2 331.3 313.5 306.3 290.4 278.4 264.9 248.6 236.8 Total official creditors .672.7 804.2 894.1 824.3 878.1 860.0 844.3 797.3 755.5 687.4 643.9 609.6 582.6 548.5 506.8 478.4 Export financing ..... ......... .. . .. 885.9 996.7 1,029.4 1,192.9 1,047.0 917.7 754.2 651.3 531.6 333.1 254.9 203.6 139.7 111.2 65.3 50.5 Other private creditors ....... ....... 93.6 169.6 226.3 280.8 232.9 192.0 196.7 227.8 217.4 162.5 117.4 104.1 96.0 100.5 81.0 67.6 Total private creditors ............. . 979.5 1,166.3 1,255.7 1,473.7 1,279.9 1,109.7 950.8 879.0 749.0 495.7 372.2 307.6 235.7 211.7 146.3 118.1 Total Western Hemisphere ..... ..... 1,652.2 1,970.5 2,149.8 2,298.0 2,158.0 1,969.6 1,795.1 1,676.3 1,504.5 1,183.1 1,016.1 917.2 818.3 760.2 653.1 596.6 All Developing Areas Loans from governments ........... . 1,269.4 1,462.8 1,587.2 1,677.8 1,985.7 2,171.9 2,274.9 2,183.2 2,109.0 2,056.2 1,923.1 1,806.5 1,701.0 1,614.0 1,415.7 1,278.8 Loans from international organizations ........... ........... 385.1 439.9 471.2 522.0 677.0 718.3 734.4 753.6 757.0 733.3 709.9 683.2 670.4 637.3 584.4 556.4 Total official creditors ................ 1,654.5 1,902.7 2,058.4 2,199.7 2,662.7 2,890.4 3,009.2 2,936.8 2,866.0 2,789.4 2,632.9 2,489.6 2,371.5 2,251.4 2,000.1 1,835.2 Export financing......... ........ 1,455.8 1,697.2 1,781.4 2,055.5 2,004.3 1,956.7 1,812.4 1,488.2 1,161.5 814.4 637.6 506.4 364.9 259.2 162.1 114.1 Other private creditors ....... .... 278.1 297.0 322.4 417.9 498.9 414.0 338.6 372.4 371.0 298.1 233.0 253.9 234.8 266.1 355.8 250.1 Total private creditors ...... ....... 1,733.9 1,994.2 2,103.8 2,473.4 2,503.3 2,370.7 2,151.0 1,860.5 1,532.4 1,112.7 870.4 760.1 599.7 525.2 517.9 364.1 Grand total ....................... 3,388.4 3,896.9 4,162.2 4,673.2 5,166.0 5,260.8 5,160.1 4,797.4 4,398.4 3,902.1 3,503.4 3,249.7 2,971.1 2,766.6 2,518.0 2,199.6 (1) Includes the same countries as Table 5. Note: Items may not add to totals due to rounding. Source: World Bank. D4 Foreign and International Bond Issues by Market and Country of Borrower Entity, 1965-1969, First Half 1970(1) Table 11 (Millions of US dollars) Year and Market Borrowing country 1965 1966 1967 1968 1969 1970(P) North North North North North North America Europeo2) Total America Europe(2) Total America Europe(z) Total America Europe(Z) Other(3) Total America Europe(2) Total America Europe(') Total Industrialized Countries Europe Austria . ..... ....... - 11.8 11.8 - 38.2 38.2 - 85.1 85.1 - 93.3 - 93.3 - 70.5 70.5 - Belgium .................... - 20.0 20.0 - 40.0 40.0 - 50.0 50.0 - 40.0 - 40.0 - 27.5 27.5 - - Denmark ..n m 35.0 35.0 - 47.6 47.6 - 72.0 72.0 - 105.8 - 105.8 - 118.9 118.9 - 30.0 30.0 Finland .................._. 25.0 11.2 36.2 - 1.0 1.0 15.0 25.0 40.0 - 87.4 - 87.4 - 82.1 82.1 - - - France ...................... - 41.5 41.5 - 27.1 27.1 - 157.2 157.2 - 123.8 - 123.8 - 241.1 241.1 - 98.7 98.7 Germany ................... . - 28.1 28.1 79.4 79.4 - 70.7 70.7 - 8.6 - 8.6 2.8 229.3 232.1 - 33.0 33.0 Iceland . .................... 0.3 --- 0.3 - 6.0 6.0 18.0 18.0 4.8 - 4.8 - 6.3 6.3 - - - Ireland . ............. 6.5 3.6 10.1 - 33.6 33.6 - - - - - - - 57.5 57.5 - 15.0 15.0 Italy . .. - 80.0 80.0 - 60.0 60.0 - 73.1 73.1 - 84.2 - 84.2 - 168.9 168.9 - 270.0 270.0 Luxembourg ........- _ - _ _ _ - _ _ _ _ _ _ _ _ _ _ Netherlands ............ - 38.9 38.9 - 41.4 41.4 - 180.0 - 180.0 -- 178.9 178.9 -- 82.3 82.3 Norway .................... 15.0 92.5 107.5 10.0 10.0 20.0 12.0 83.5 95.5 - 40.7 - 40.7 - 24.0 24.0 - 56.6 56.6 Sweden ..................... --- 71.2 71.2 - 34.0 34.0 - 30.0 30.0 - 11.6 - 11.6 - - - - - - Switzerlandt... . .- - -. - - - - - - - 60.0 60.0 - - United Kingdom .............. 80.0 48.1 128.1 4.5 51.6 56.1 - 74.2 74.2 _ 148.9 - 148.9 - 263.5 263.5 71.9 71.9 Multinational corporations(4) .... - - - 62.5 62.5 - 157.0 157.0 - 33.9 - 33.9 - 70.0 70.0 - 31.0 31.0 Others Australia .................... 12.5 72.4 84.9 - 25.0 25.0 - 100.8 100.8 - 88.9 - 88.9 - 116.0 116.0 - 13.9 13.9 Canada .................... 1,063.5 - 1,063.5 1,239.3 - 1,239.3 1,332.0 16.0 1,348.0 1,261.6 323.5 - 1,585.1 1,455.8 315.2 1,771.0 334.7 93.6 428.3 Japan .................... . 62.5 35.0 97.5 - - - 15.0 - 15.0 - 178.9 - 178.9 9.0 261.0 270.0 - 51.6 51.6 New Zealand .................. .. 48.0 48.0 - 58.6 58.6 - 82.2 82.2 - 34.4 --- 34.4 - 25.0 25.0 - - South Africa .................. - 12.5 12.5 - 25.0 25.0 - - 62.5 62.5 - 55.0 -- 55.0 - 38.8 38.8 --- 39.3 39.3 United States ... ........ - 340.9 340.9 - 629.3 629.3 - 597.8 597.8 3.2 2,222.1 - 2,225.3 1.2 1,435.5 1,436.7 - 733.7 733.7 Sub-total .................... 1,265.3 951.8 2,217.1 1,253.8 1,267.8 2,521.6 1,374.0 1,796.5 3,170.5 1,264.8 3,865.8 _ 5,130.6 1,468.8 3,790.0 5,258.8 334.7 1,620.6 1,955.3 Multilateral European Institutions Council of Europe ........... - 7.5 7.5 - 6.0 6.0 - - - - - - - - - - - - Eurofima() .................... . 24.3 24.3 -- 6.9 6.9 - 42.0 42.0 --- 31.1 31.1 - - - - 7.0 7.0 European Coal and Steel Community ................. - 37.5 37.5 - 127.0 127.0 - 52.5 52.5 - 63.0 - 63.0 - 13.8 13.8 -- - European Investment Bank ..... - 50.9 50.9 - 133.5 133.5 20.0 179.5 199.5 - 100.0 - 100.0 - 82.3 82.3 - 27.3 27.3 Interfrigo(6) .....-........... - - - 6.9 6.9 - - - - - - -- - 9.2 9.2 - - - Sub-total .................... - 120.2 120.2 - 280.3 280.3 20.0 274.0 294.0 - 194.1 - 194.1 - 105.3 105.3 - 34.3 34.3 Total ................... . 1,265.3 1,072.0 2,337.3 1,253.8 1,548.1 2,801.9 1,394.0 2,070.5 3,464.5 1,264.8 4,059.9 - 5,324.7 1,468.8 3,895.3 5,364.1 334.7 1,654.9 1,989.6 International Development Institutions Asian Development Bank .... ... - - - - - - - - - - - - - 15.0 15.0 - 5.0 5.0 World Bank ......... ......... 223.1 312.0 535.1 212.0 283.2 495.2 400.0 297.4 697.4 413.9 753.6 72.0 1,239.5 - 712.8 712.8 - 442.8(i) 442.8 Inter-American Development Bank. .. - - -- - 100.6 100.6 110.0 36.0 146.0 70.0 96.0 - 166.0 - 137.2 137.2 - 34.3 34.3 Sub-total ........... ...... 223.1 312.0 535.1 212.0 383.8 595.8 510.0 333.4 843.4 483.9 849.6 72.0 1,405.5 - 865.0 865.0 - 482.1 482.1 Developing Countries Algeria .....................-.-. 15.0 - 15.0 ------ Argentina ......... .......... -- - 23.5 - 23.5 _ 25.0 25.0 25.5 50.0 75.5 51.1 60.4 111.5 2.4 11.6 14.0 Bahamas .................... - - 14.0 - 14.0 - - - - Brazil............. .... . _ _ _ - - - - _ - 0.8 10.0 - 10.8 1.0 10.0 11.0 - 5.5 5.5 Colombia .................... - 0.5 7.0 7.5 - - - 1.1 - 1.1 0.7 - 0.7 Dominican Republic ... - . - .. ......... - - 0.2 - - 0.2 - - - - - EAC) ...... - - - - - - - - 16.8 - 16.8 - - - - - Gabon ........ .. - - - -- 2.4 2.4 - - - - - 3.6 3.6 Greece .......... ...........-.- - - - -- - - 25.0 - 25.0 - - --- - - -2 Iran ............ ........ - -- - - 20.0 20.0 - 8.0 8.0 - - Israel ................ . . 96.3 25.0 121.3 119.7 23.0 142.7 203.1 18.0 221.1 179.0 3.5 182.5 151.3 35.0 186.3 49.9 - 49.9 Ivory Coast .............. . . . - 6.1 6.1 - - - - -- - 16.1 - 16.1 - - - - - Jamaica ................. . . - 8.8 8.8 7.5 8.4 15.9 - - - - 7.2 - 7.2 Liberia ......... ............ 6.0 6.0 - - - - - - - - - - - - - - - - Malagasy Republic ........... - - - - - 4.1 - 4.1 Malaysia ................ . . 25.0 - 25.0 - - - - 21.0 21.0 - 6.3 - 6.3 - 10.0 10.0 - - - Mexico ................ . . 51.4 - 51.4 15.7 45.0 60.7 39.6 85.0 124.6 9.0 138.6 - 147.6 26.0 61.4 87.4 - - - Netherlands Antilles ... - - - - --- - 13.8 13.8 - - - - - - - - Nicaragua . . ............ ...... - - - - - 1.5 - 1.5 - - 1 . Panama .................... - - - - - - 7.5 - 7.5 - -- - - -- Peru ................ . . - - 4.0 18.5 22.5 11.3 5.8 17.1 - - - 5.8 5.8 - - Philippines . . ............... . 18.0 18.0 - -- - 8.0 - 8.0 15.0 - 15.0 11.0 - 11.0 - - Portugal .............. . . - 20.0 20.0 - 29.0 29.0 - 34.0 34.0 -- 15.0 - 15.0 - - - - - Senegal ....... ............ - - - - - 6.1 - 6.1 - - - - 6 .- Spain .......... .......... - - - - - - - 53.0 53.0 60.0 - 60.0 - 25.0 25.0 - - Thailand . ................... -- - - -- 1.0 - 1.0 - - - - - - - - - - Trinidad and Tobago ... 10.0 - 10.0 - - - - 7.2 -- 7.2 - - - - Venezuela ............... . 15.5 - 15.5 4.3 - 4.3 1.1 - 1.1 - 25.0 - 25.0 8.2 - 8.2 - 13.3 13.3 Sub-total.... . ......... ... 222.2 59.9 282.1 203.7 126.3 330.0 273.6 262.6 536.2 289.5 350.9 - 640.4 249.7 215.6 465.3 53.0 34.0 87.0 Total ............ . 445.3 371.9 817.2 415.7 510.1 925.8 783.6 596.0 1,379.6 773.4 1,200.5 72.0 2045.9 249.7 1080.6 1,330.3 53,0 516.1 569.1 Recapitulation International Development Institutions ........ ......... 223.1 312.0 535.1 212.0 383.8 595.8 510.0 333.4 843.4 483.9 849.6 72.0 1,405.5 - 865.0 865.0 - 482.1 482.1 Developing Countries .. ....... 222.2 59.9 282.1 203.7 126.3 330.0 273.6 262.6 536.2 289.5 350.9 - 640.4 249.7 215.6 465.3 53.0 34.0 87.0 Total . . .......... 445.3 371.9 817.2 415.7 510.1 925.8 783.6 596.0 1,379.6 773.4 1,200.5 72.0 2,045.9 249.7 1,080.6 1,330.3 53.0 516.1 569.1 Industrialized Countries .. 1,265.3 951.8 2,217.1 1,253.8 1,267.8 2,521.6 1,374.0 1,796.5 3,170.5 1,264.8 3,865.8 - 5,130.6 1,468.8 3,790.0 5,258.8 334.7 1,620.6 1,955.3 Multilateral Institutions ........ - 120.2 120.2 - 280.3 280.3 20.0 274.0 294.0 - 194.1 - 194.1 - 105.3 105.3 - 34.3 34.3 Total . . . 1,265.3 1,072.0 2,337.3 1,253.8 1,548.1 2,801.9 1,394.0 2,070.5 3,464.5 1,264.8 4,059.9 - 5,324.7 1,468.8 3,895.3 5,364.1 334.7 1,654.9 1,989.6 Grand total ... .. 1,710.6 1,443.9 3,154.5 1,669.5 2,058.2 3,727.7 2,177.6 2,666.5 4,844.1 2,038.2 5,260.4 72. 0 7,370.6 1,718.5 4,975.9 6,694.4 387.7 2,171.0 2,558.7 (') Includes issues both publicly offered and privately placed. (5) Societe Europeenne pour le Financement de Mat6riel Ferroviaire. (a) Includes London, Continental Europe and the Eurobond Market. (C) Societ6 Ferroviaire Internationale de Transport Frigorifiques. (a) Includes Kuwait and Saudi Arabia. (7) Includes 2 issues of Y72.0 biliion privately placed in Japan. (4) These are companies which have several parent companies of diverse nationalities. They include the following corporations: Ameribas Holdings, (8) East African Community. BEC Finance N.V., Compagnie Internationale des Wagons-Lits et du Tourisme, Queensland Alumina Holdings, N.V. Rotterdam-Rijn (P) Preliminary. Pijpleiding, Shell International Finance N.V., Soci6te Financijre Europeenne, Transalpine Finance Holdings, Shell Frangaise. Source: World Bank. Co -k Average Issue Yield of New Foreign and International Bonds, 1965-1969, First Half of 1970(l) Table 12 (Percentages) Issued in North American Markets by(') Issued in European Markets by Issued in Eurobond Market by Year and quarter Inter- Other Inter- Other Other Inter- Other of issue American national U.S. lndustri- Develop- national U.S. Industri- Develop- World Development World Development Corpo- alized ing World Development Corpo- alized ing Bank Bank Canada(') Others(') Bank Institutions rations Countries(4) Countries(3) Bank Institutions rations Countries)4) Countries(3) 1965 First Quarter .......... . 4.55 - - 6.63 5.50 - 5.86 5.89 - - - 6.01 Second Quarter .......... . -- 4.75 6.06 4.75 - 5.51 7.36 - 6.06 5.97 - Third Quarter ............ - - 4.85 7.00 - - 4.75 6.46 - - 6.09 6.07 - Fourth Quarter ........... - - 5.25 6.66 - - - 6.06 6.00 - - 5.21 6.08 - 1966 First Quarter .......... . 5.98 - 5.50 7.09 - - 5.00 5.71 - - -- 5.27 6.53 - Second Quarter .......... 5.39 - 5.60 6.92 - 5.33 - - 5.84 6.74 6.72 Third Quarter ......... - - 6.25 - - 5.75(6) - 6.57 6.00 - - 7.24 6.90 7.26 Fourth Quarter ........... 6.41 - 6.37 - - 6.89 7.25 - - 6.75 6.88 7.35 1967 First Quarter .......... . 5.35 5.20 5.81 - - - 5.62 6.35 - - - 6.23 6.84 7.78 Second Quarter .......... - - 6.35 - 5.04 - - 5.35 5.78 - - 6.29 6.69 7.28 Third Quarter ............ 5.95 - 6.51 7.19 - -- - 5.50 6.34 - - - 5.77 6.83 7.45 Fourth Quarter ............ - 6.55 6.86 7.25 6.00 7.25()) 5.25 6.71 7.36 - - 5.11 6.90 7.24 1968 First Quarter ............ 6.71 - 7.06 - 7.08 _ 5.27 6.10 8.68 - - 5.34 7.37 8.33 Second Quarter .......... - - 7.37 7.12 5.89 6.98(6) 5.60 6.71 - - - 5.09 7.18 7.42 Third Quarter ............ 6.54 - 7.30 - 6.56(5) 6.16(6) - 5.56 - - - 5.72 5.99 7.48 Fourth Quarter ... ....... - 6.78 7.28 5.92 5.35 7.16(6) 5.65 6.41 7.42 - _ 6.51 6.88 7.75 1969 First Quarter ....... 7.76 - - 6.46(6) 5.28 6.28 6.00 - - 5.92 6.40 8.19 Second Quarter .......... - - 8.21 6.50 6.77 - 5.70 6.61 6.86 - - 6.80 6.79 7.06 Third Quarter ............ - - 8.82 - - 7.24(6) 6.45 7.18 - 7.41(7) 7.62 7.50 7.73 Fourth Quarter ........... - - 9.61 _ 6.28 7.00 8.79 - 7.44 7.12 9.00 1970 (P) First Quarter ..... - 9.49 - - - 6.44 6.38 7.50 - - 7.79 8.31 - Second Quarter ..........7.00 - 7.19()) 6.50 7.58 - - 9.03 8.40 (1) Includes publicly offered bonds only. (a) Includes Canada and United States. (3) Issues by governments, public and private corporations. (4) Issues by governments, public and private corporations, and multilateral European institutions. (5) Includes issue in Kuwait. () Issues by Inter-American Development Bank. (7) Issue by Asian Development Bank. (P) Preliminary. Source: World Bank. Bank Appendices Page A Balance Sheet ...... .... ...... 84 B Statement of Income and Expenses 86 SC Statement of Subscriptions to Capital Stock and Voting Power . . 87 D Summary Statement of Loans .. .. ..... .. . . 89 E Summary Statement of Funded Debt 91 F Notes to Financial Statements 92 OPINION OF INDEPENDENT AUDITOR .93 G Statement of Loans Signed During the Fiscal Year 1969/70 .94 83 Balance Sheet Jine 30, 1970 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Assets 1970 1969 DUE FROM BANKS AND OTHER DEPOSITORIES Member currencies Unrestricted ........... .............. .......................... $ 28,305,616 $ 20,929,825 Subject to restrictions-Note B .... ............................... 81,009,906 81,629,458 $109,315,522 102,559,283 Non-member currency (Swiss francs) ............ ...... ............... 7,514,211 2,295,449 $ 116,829,733 104,854,732 INVESTMENTS Obligations of governments and their instrumentalities (At cost or amortized cost; face amount $980,646,233-1970, $763,633,501-1969) ..... .... $968,842,430 756,328,705 Time deposits .. ................................................. 750,846,474 619,459,826 Accrued interest .............................................. ..... 61,282,344 33,558,193 1,780,971,248 1,409,346,724 RECEIVABLE ON ACCOUNT OF SUBSCRIBED CAPITAL (See Appendix C)-Note B Non-negotiable, non-interest-bearing, demand notes ..... ................. $348,221,329 368,683,103 Amounts required to maintain value of currency holdings .............. 2,867,635 7,950,786 351,088,964 376,633,889 EFFECTIVE LOANS HELD BY BANK (See Appendix D) (Including undisbursed balance $2,925,876,958-1970, $2,373,035,367-1969) 8,888,920,209 7,986,944,376 ACCRUED CHARGES ON LOANS ............ 96,281,212 90,641,153 RECEIVABLE FROM PURCHASERS ON ACCOUNT OF EFFECTIVE LOANS AGREED TO BE SOLD (Including undisbursed balance $12,825,125-1970, $31,851,150-1969) .... ......... ............... ............... -23,910,714 47,660,572 UNAMORTIZED BOND ISSUANCE COSTS ......... ................... 34,427,794 34,964,306 LAND AND BUILDINGS .............. .................................. $ 40,386,877 37,910,133 Less-Reserve for depreciation ........................................ 3,922,989 3,386,831 36,463,888 34,523,302 OTHER ASSETS(Includingspecial deposits Nil-1970, $15,000,000.-1969) ..... 7,302,585 23,597,167 SPECIAL RESERVE FUND ASSETS-Note C Due from Banks-member currency-United States ....................... $ 693 Investmentsecurities-Obligations of United States Government and its instru- mentalities (At cost or amortized cost; face amount $292,128,806-1970, $290,915,000-1969) ............ ..................................... 291,750,341 291,331,229 Accrued loan commissions..... ...... ...... ___ ... 134,800 172,306 291,885,834 291,503,535 STAFF RETIREMENT PLAN ASSETS (Segregated and held in trust) .......................................... 50,017,638 43,720,909 TOTAL ................................................... $11,678,099,819 $10,444,390,665 84 Appendix A International Bank for Reconstruction and Development Liabilities, Reserves and Capital 1970 1969 lIABILITIES Accrued interest on borrowings ......................... ....... ...... $ 91,240,879 $ 76,416,466 Accounts payable and other liabilities ................................. 8,708,488 12,815,638 Due to International Development Association ......... ................... 162,640,000 92,200,000 Undisbursed balance of effective loans (See Appendix D) Held by Bank ........ . ............................. ............. $ 2,925,876,958 2,373,035,367 Agreed to be sold ........ ...................... .... ....... 12,825,125 31,851,150 2,938,702,083 2,404,886,517 Funded debt (See Appendix E) (Including amount due within one year $509,684,670-1970, $388,268,069-1969) ......... ........................... .... 4,568,304,977 4,081,215,562 RESERVES Special reserve-Note C ........... ..... .... ...... I ........ $ 291,885,834 291,503,535 Supplemental reserve against losses on loans and guarantees and from currency devaluations-Note D .... .... ........ ................... 1,036,858,375 962,890,283 1,328,744,209 1,254,393,818 STAFF RETIREMENT PLAN RESERVE ............. ........... ..... . 50,017,638 43,720,909 CAPITAL Capital stock (See Appendix C)-Note E Authorized 240,000 shares of $100,000 par value each Subscribed 231,588 shares-1970, 230,364 shares-1969 . . $23,158,800,000 23,036,400,000 Less-Uncalled portion of subscriptions-Note F .................... 20,842,920,000 20,732,760,000 2,315,880,000 2,303,640,000 Payments on account of pending subscriptions ...................... 992,270 3,664,000 Net income-Note D Fiscal year ended June 30 (See Appendix B) ......................... 212,869,275 171,437,755 TOTAL ........................... .... ................ . $11,678,099,819 $10,444,390,665 85 Statement of Income and Expenses Appendix B International Bank for Reconstruction and Development For the Fiscal Years Ended June 30, 1970 and June 30, 1969 Expressed in United States Currency-See Notes to Financial Statements, Appendix F July 1-June 30 1969/70 1968/69 Income Income from investments ................................................................. $149,217,323 $ 88,133,128 Income from loans: Interest ...... ................... ......................... ........ 326,619,819 302,903,683 Commitment charges ......... .17,613,602 ............................ 1 1,391,058 Commissions .......3 ,4 1 ..................................90...........................3 486,190 Service charges . . ...................................................................... 45,708 64,089 Other income ..................... ...................................................... 10,788,907 7,787,396 GROSS INCOME $.................................................................. $504,667,,658 $410,765,544 Deduct-Amount equivalent to commissions appropriated to Special Reserve-Note C ............ 382,299 486,190 Gross Income Less Reserve Deduction .......................................... $504,285,359 $410,279,354 Expenses Administrative expenses (Including International Development Association)(') Personal services ....................................................................... $ 31,847,042 $ 24,533,292 Contributions to staff benefits ................. . 5,146,089 3,937,403 Fees and compensation ....................................................... 4,284,601 2,210,876 Representation ......... ..... ... ........ .......... ..... ..... 330,445 300,420 Grants to member countries ............................................................... 376,043 509,892 FAO and Unesco cooperative programs ....................... ....... ................... 2,055,973 1,701,520 Travel ....................... ........................ 8,717,178 6,497,783 Supplies and material ................................................................ 486,901 332,048 Office occupancy ............... ........................................................ 3,553,635 2,180,799 Communication services . .............. ........................... ..................... 1,467,054 1,203,580 Furniture and equipment ................................................................ 1,626,857 916,538 Books and library services ................................................................ 401,058 373,757 Printing 7 .28...... ................................................................ 726,309 609,830 Insurance ....... .. ........................................185,12..........................1 4 185,102 Other expenses ....... .......................... ....... ....................... 40,099 32,707 TOTAL .. ............................................................. $ 61,252,738 $ 45,525,547 Deduct-Management Fee charged to International Development Association ..................... 15,800,000 4,200,000 TOTAL ADMINISTRATIVE EXPENSES ................................................. . $ 45,452,738 $ 41,325,547 Interest on borrowings ..................... ............ . ......................... 242,372,908 194,471,597 Bond issuance and other financial expenses ..................................... ............ 3,549,270 2,873,150 Discount on sale of loans .............. ..................... ............................. 41,168 171,305 GROSS EXPENSES .......... ........ $291,416,084 $238,841,599 Net Incom e-Note D .................... ............................................. $212,869,275 $171,437,755 (L) The amount previously reported as "Services to member countries" for the fiscal year ended June 30, 1969 has been included in "Administrative expenses" for that fiscal year. 86 Statement of Subscriptions to Capital Appendix C International Bank for Stock and Voting PowerIneatolBnkr Stock and Voting Power ~ ~~~~~~~~~~~~Reconstruction and Development June 30, 1970 Expressed in United States Currency (in thousands)-See Notes to Financial Statements, Appendix F Amounts Paid in In currency In non- of member negotiable, other than non-interest- Subject to call Subscriptions United bearing, to meet Voting Power In United States demand obligations Percent Amount States dollars notes of Bank Number Percent Member Shares of total (Note E) dollars (Note B) (Note s) (Note F) of votes of total Afghanistan ....................... 300 .13 $ 30,000 $ 300 $ 1,200 $ 1,500 $ 27,000 550 .21 Algeria ....................... 800 .35 80,000 800 72 7,128 72,000 1,050 .40 Argentina ....................... 3,733 1.61 373,300 16,772 1,000 19,558 335,970 3,983 1.53 Australia ................ . .. 5,330 2.30 533,000 5,330 47,970 - 479,700 5,580 2.15 Austria ....................... 1,867 .81 186,700 1,867 16,803 - 168,030 2,117 .81 Belgium ....................... 4,500 1.94 450,000 4,500 40,500 - 405,000 4,750 1.83 Bolivia ............ ........... 210 .09 21,000 210 13 1,877 18,900 460 .18 Botswana ....................... 32 .01 3,200 32 8 280 2,880 282 .11 Brazil ....................... 3,733 1.61 373,300 3,733 33,597 - 335,970 3,983 1.53 Burma ....................... 507 .22 50,700 507 1,207 3,356 45,630 757 .29 Burundi ....................... 150 .07 15,000 150 15 1,335 13,500 400 .15 Cameroon (1) , . ...................... 200 .09 20,000 200 29 1,573 18,000 450 .17 Canada ....................... 7,920 3.42 792,000 7,920 71,280 - 712,800 8,170 3.14 Central African Republic (0) ......... 100 .04 10,000 100 38 765 9,000 350 .14 Ceylon ....................... 827 .36 82,700 827 908 6,535 74,430 1,077 .41 Chad ....................... 100 .04 10,000 100 24 876 9,000 350 .14 Chile ................ ....... 933 .40 93,300 933 8,397 - 83,970 1,183 .46 China ....................... 7,500 3.24 750,000 7,500 7,043 60,457 675,000 7,750 2.98 Colombia ....................... 933 .40 93,300 9,330 - - 83,970 1,183 .46 Congo, Democratic Republic of ...... 960 .41 96,000 960 694 7,946 86,400 1,210 .47 Congo, People's Republic of (" ....... 100 .04 10,000 100 27 775 9,000 350 .14 Costa Rica ....................... 107 .05 10,700 467 603 - 9,630 357 .14 Cyprus ... .................... 213 .09 21,300 213 21 1,896 19,170 463 .18 Dahomey (1) . . .. .............. 100 .04 10,000 100 31 771 9,000 350 .14 Denmark ....................... 1,733 .75 173,300 1,733 15,597 - 155,970 1,983 .76 Dominican Republic ................ 133 .06 13,300 133 483 714 11,970 383 .15 Ecuador ....................... 171 .07 17,100 1,710 - - 15,390 421 .16 El Salvador ....................... 107 .05 10,700 287 783 - 9,630 357 .14 Ethiopia ................... .... 100 .04 10,000 1,000 - - 9,000 350 .14 Finland ....................... 1,333 .58 133,300 1,333 11,997 - 119,970 1,583 .61 France ....................... 10,500 4.53 1,050,000 10,500 94,500 - 945,000 10,750 4.14 Gabon ....................... 100 .04 10,000 100 32 868 9,000 350 .14 Gambia, The ....................... 53 .02 5,300 53 6 471 4,770 303 .12 Germany ............. .......... 12,800 5.53 1,280,000 12,800 115,200 - 1,152,000 13,050 5.02 Ghana ....................... 734 .32 73,400 734 1,892 4,714 66,060 984 .38 Greece ....................... 667 .29 66,700 667 6,003 - 60,030 917 .35 Guatemala ....................... 107 .05 10,700 467 603 - 9,630 357 .14 Guinea ....................... 200 .09 20,000 200 1,800 - 18,000 450 .17 Guyana ....................... 160 .07 16,000 160 15 1,425 14,400 410 .16 Haiti .. ..................... 150 .07 15,000 150 41 1,309 13,500 400 .15 Honduras ....................... 80 .03 8,000 620 - 180 7,200 330 .13 Iceland ............. .......... 150 .07 15,000 1,500 - - 13,500 400 .15 India ....................... 8,000 3.45 800,000 8,000 24,951 47,049 720,000 8,250 3.17 Indonesia ....................... 2,200 .95 220,000 2,200 698 19,102 198,000 2,450 .94 Iran . ....................... 1,286 .55 128,600 1,286 8,100 3,474 115,740 1,536 .59 Iraq. ....................... 640 .28 64,000 640 1,350 4,410 57,600 890 .34 Ireland ........................ 853 .37 85,300 853 6,385 1,292 76,770 1,103 .42 Israel .. , 959 .41 95,900 3,038 1,843 4,709 86,310 1,209 .47 Italy. ....................... 6,660 2.88 666,000 6,660 59,940 - 599,400 6,910 2.66 Ivory Coast (1) . .. .... ... 200 .09 20,000 200 1,512 216 18,000 450 .17 Jamaica ................ ....... 400 .17 40,000 2,045 22 1,933 36,000 650 .25 Japan ....................... 7,726 3.34 772,600 7,726 69,534 - 695,340 7,976 3.07 Jordan ....................... 163 .07 16,300 163 61 1,406 14,670 413 .16 Kenya - ...................... 333 .14 33,300 333 1,471 1,526 29,970 583 .22 Korea ....................... 533 .23 53,300 533 1,130 3,667 47,970 783 .30 Kuwait .. , 667 .29 66,700 667 6,003 - 60,030 917 .35 Laos .................... ... 100 .04 10,000 100 900 - 9,000 350 .14 Lebanon ....................... 90 .04 9,000 900 - - 8,100 340 .13 Lesotho .. ..................... 32 .01 3,200 32 3 285 2,880 282 .11 Liberia ..................... .. 213 .09 21,300 213 13 1,904 19,170 463 .18 (cootinu ed) 87 Statement of Subscriptions to Capital Appendix C International Bank for Stock and Voting Power (continued) Reconstruction and Development June 30, 1970 Expressed in United States Currency (in thousands)-See Notes to Financial Statements, Appendix F Amounts Paid in In currency In non- of member neigot iable, other than non-interest- Subject to call Subscriptions United bearing, to meet Voting Power In United States demand obligations Percent Amount States dollars notes of Bank Number Percent Member Shares of total (Note E) dollars (Note B) (Note B) (Note F) of votes of total Libya . ............... 200 .09 $ 20,000 $ 2,000 $ - $ - $ 18,000 450 .17 Luxembourg. ... 200 .09 20,000 200 1,800 - 18,000 450 .17 Malagasy Republic . ......... 200 .09 20,000 200 37 1,763 18,000 450 .17 Malawi . .... ......... 150 .07 15,000 150 36 1,314 13,500 400 .15 Malaysia . ............... 1,333 .58 133,300 1,333 11,997 - 119,970 1,583 .61 Mali . ...... ......... 173 .07 17,300 173 1,557 - 15,570 423 .16 Mauritania ....................... 100 .04 10,000 100 26 874 9,000 350 .14 Mauritius ................ . . . . 171 .07 17,100 171 16 1,523 15,390 421 .16 Mexico .... ................... 2,080 .90 208,000 2,080 18,720 - 187,200 2,330 .90 Morocco ....................... 960 .41 96,000 960 99 8,541 86,400 1,210 .47 Nepal ....................... 100 .04 10,000 100 9 891 9,000 350 .14 Netherlands ....................... 5,500 2.37 550,000 5,500 49,5C0 - 495,000 5,750 2.21 New Zealand ...................... 1,667 .72 166,700 1,667 129 14,874 150,030 1,917 .74 Nicaragua ....................... 80 .03 8,000 620 180 - 7,200 330 .13 Niger0) ........................ 100 .04 10,000 100 26 776 9,000 350 .14 Nigeria ....................... 1,067 .46 106,700 1,067 256 9,347 96,030 1,317 .51 Norway ....................... 1,600 .69 160,000 1,600 14,400 - 144,000 1,850 .71 Pakistan ....................... 2,000 .86 200,000 2,000 2,049 15,951 180,000 2,250 .87 Panama ....................... 90 .04 9,000 126 - 774 8,100 340 .13 Paraguay ....................... 60 .03 6,000 60 540 - 5,400 310 .12 Peru ....................... 635 .27 63,500 3,785 44 2,521 57,150 885 .34 Philippines ....................... 1,173 .51 117,300 3,873 6,300 1,557 105,570 1,423 .55 Portugal ....................... 800 .35 80,000 800 7,200 - 72,000 1,050 .40 Rwanda ....................... 150 .07 15,000 150 1,350 - 13,500 400 .15 Saudi Arabia ...................... 960 .41 96,000 960 22 8,618 86,400 1,210 .47 Senegal(') ....................... 333 .14 33,300 333 37 2,630 29,970 583 .22 Sierra Leone ....................... 150 .07 15,000 150 20 1,330 13,500 400 .15 Singapore ....................... 320 .14 32,000 320 2,304 576 28,800 570 .22 Somalia ................- 150 .07 15,000 150 14 1,336 13,500 400 .15 South Africa ....................... 2,133 .92 213,300 2,133 19,197 - 191,970 2,383 .92 Southern Yemen . . ...... 235 .10 23,500 235 22 2,093 21,150 485 .19 Spain ....................... 2,667 1.15 266,700 2,667 22,803 1,200 240,030 2,917 1.12 Sudan ....................... 600 .26 60,000 600 1,800 3,600 54,000 850 .33 Swaziland . .... ..... 64 .03 6,400 64 6 570 5,760 314 .12 Sweden . .... .......... 2,400 1.04 240,000 2,400 21,600 - 216,000 2,650 1.02 Syrian Arab Republic . ........ 400 .17 40,000 400 44 3,556 36,000 650 .25 Tanzania . .............. 333 .14 33,300 333 78 2,919 29,970 583 .22 Thailand . ............... 1,013 .44 101,300 7,652 82 2,396 91,170 1,263 .49 Togo(') . ...................... 150 .07 15,000 150 35 1,168 13,500 400 .15 Trinidad and Tobago . ........ 467 .20 46,700 1,709 24 2,937 42,030 717 .28 Tunisia ....................... 373 .16 37,300 373 74 3,283 33,570 623 .24 Turkey . ......... 1,150 .50 115,000 1,150 271 10,079 103,500 1,400 .54 Uganda ....................... 333 .14 33,300 333 78 2,919 29,970 583 .22 United Arab Republic . .. ...... 1,421 .61 142,100 1,421 145 12,644 127,890 1,671 .64 United Kingdom('l . ........... 26,000 11.23 2,600,000 26,000 232,270 - 2,340,000 26,250 10.10 United States ...................... 63,500 27.42 6,350,000 635,000 - - 5,715,000 63,750 24.53 Upper Volta ....................... 100 .04 10,000 100 26 874 9,000 350 .14 Uruguay) .............. -..... 280 .12 28,000 1,981 63 756 25,200 530 .20 Venezuela ... ........ .. .. 1,867 .81 186,700 18,670 - - 168,030 2,117 .81 Viet-Nam ....................... 427 .18 42,700 427 3,843 - 38,430 677 .26 Yemen Arab Republic . . 85 .04 8,500 85 765 - 7,650 335 .13 Yugoslavia ....................... 1,067 .46 106,700 9,373 1,297 - 96,030 1,317 .51 Zambia ....................... 533 .23 53,300 533 48 4,749 47,970 783 .30 TOTALS .............. 231,588 100.00 $23,158,800 $877,204 $1,087,587 $348,221 $20,842,920 259,838 100.00 (l) Amounts aggregating the equivalent of $2,867,635 receivable as a result of revaluation of these currencies, are not included in the "Amounts Paid in" columns. (2) The equivalent of $131,000 has been received from Uruguay on account of an increase in subscription which is in process of completion. General: $640,000 from Equatorial Guinea and $221,270 from Cambodia have been received on account of their capital subscriptions pending admission to membership. 88 Summary Statement of Loans Appendix D International Bank for Reconstruction and Development June 30, 1970 Expresned in United Staten Currency-See Notes to Financial Statenments, Appendix F Elffectiee loans held by Bank Members in whose territories foans Disburned Undisburned Lnann not yet have been made(1) portion portisn(2) Total(') effective(C) Algeia. ......... ..... ...... $ 12,715,000 $ -.- 12,7 15,000 $ Argentina ................. . 168,244,616 161,279,384 329,524,000 Australia.................. . 138,139,841 6,369,955 144,509,796 4,500,000 Austria .................. . 48,786,331 48,786,331 Belgium ............. . .....25,971,871 -25,971,871 Bolivia................... . - - - 23,250,000 Brazil................... . 225,816,722 247,333,826 473,150,548 205,000,000 Burma................ .....15,359,567 - 15,359,567 Cameroon....... .... . .....2,124,898 17,775,102 19,900,000 17,200,000 Ceylon................... . 26,234,038 35,824,610 62,058,648 14,500,000 Chile ................... . 97,693,370 49,990,751 147,684,121 19,300,000 China ................... . 65,130,665 94,175,151 159,305,816 71,500,000 Colombia ................. . 322,916,834 142,940,733 465,857,567 127,600,000 Congo, People's Republic of........ . ..30,000,000 - 30,000,000 Costa Rica................. . 33,944,843 34,998,392 68,943,235 Cyprus .................. . 14,749,538 16,723,674 31,473,212 Denmark.................. . 33,294,800 - 33,294,800 Dominican Republic............ . . 1,670,575 23,329,425 25,000,000 Ecuador .................. . 33,714,837 7,481,163 41,196,000 El Salvador................. . 24,808,591 7,381,049 32,189,640 Ethiopia.................. . 44,140,739 34,814,601 78,955,340 Finland ..................118,178,705 11,680,750 129,859,455 France ...................10,614,414 - 10,614,414 Gabon ....... ...........12,421,015 6,228,985 18,650,000 Ghana ...... .......... 43,475,596 5,982,404 49,458,000 Greece .................... 7,951,866 4,378,134 12,330,000 20,000,000 Guatemala ....... .........11,424,050 17,299,950 28,724,000 Guinea .................... 12,424,827 52,075,173 64,500,000 Guyana ..................85,901 7,714,099 7,800,000 Haiti ..... .... ..... ... ... 509,000 - 509,000 Honduras ................25,183,577 11,935,423 37,119,000 5,500,000 Iceland .................. 19,723,125 221,884 19,945,009 India ... ...... .... ...... 491,315,066 122,144,686 613,459,752 40,000,000 Iran ...................151,886,309 120,311,145 272,197,454 42,000,000 Iraq ....................11,372,624 7,527,376 18,900,000 Ireland ..................1,151,950 12,422,351 13,574,301 Israel ...................84,584,517 4,278,292 88,862,809 25,000,000 Italy ....................142,854,896 --142,854,896 Ivory Coast .................2,367,531 20,532,469 22,900,000 18,500,000 Jamaica ..................27,018,698 13,625,538 40,644,236 2,000,000 Japan. .................. 470,775,155 - 470,775,155 Kenya ...................259,783 23,240,217 23,500,000 2,600,000 Kenya, Tanzania and Uganda(5) ......... 44,787,590 41,212,410 86,000,000 52,800,000 Korea ...................4,183,259 65,816,741 70,000,000 40,000,000 Lebanon .................-18,136,084 - 18,136,084 Liberia ..................5,936,136 9,013,675 14,949,811 Malagasy Republic .............983,565 10,116,435 11,100,000 Malaysia. . ......... ... ... 132,555,551 73,591,878 206,147,429 21,500,000 Mexico .................-532,185,161 230,800,798 762,985,959 21,800,000 Morocco .... ............. 50,324,583 80,826,678 131,151,261 New Zealand ................84,092,104 1,967,587 86,059,691 Nicaragua .................22,439,559 15,488,441 37,928,000 Nigeria ........ .._...... 143,949,253 25,295,747 169,245,000 35,600,000 Norway ..................82,181,115 .- 82,181,115 Pakistan .................. 310,699,849 156,335,831 467,035,680 19,200,000 Panama ..................7,616,000 - 7,616,000 42,000,000 Paraguay .. ............... 5,848,735 5,310,824 11,159,559 6,000,000 Peru ...................119,275,783 34,768,618 154,044,401 Philippines .......... ......112,611,232 78,265,993 190,877,225 Portugal .................51,805,029 2,144,722 53,949,751 Senegal ..................1,574,962 5,490,377 7,065,339 Sierra Leone ................4,222,389 2,697,611 6,920,000 Singapore ............. . .... 39,298,620 49,803,380 89,102,000 South Africa ................. 5,989,208 - 5,989,208 Spain ...................148,712,758 52,918,844 201,631,602 12,000,000 (continued) 89 Summary Statement of Loans (continued) Appendix D International Bank for Reconstruction and Development June 30, 1970 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Effective loans held by Bank Members in whose territories leans Disbursed Undisbursed Loans not yet have been rmade() portion portion(2) Total(') effective(C' Sudan ... ......................$ 87,904,832 $ 23,637,168 $ 111,542,000 $ - Tanzania . . . 3,118,518 8,991,482 12,110,000 Thailand ....................... 151,058,834 96,036,746 247,095,580 Trinidad and Tobago ............ . . ...... 4,767,262 19,967,738 24,735,000 Tunisia .......... ....... ...... 20,847,706 53,175,329 74,023,035 Turkey ............................ 41,847,177 58,188,038 100,035,215 United Arab Republic . .............. ... 24,750,000 - 24,750,000 United Kingdom ............. ............. 92,121,037 201,127 92,322,164 Uruguay .... . ....................... .... 51,642,330 2,359,670 54,002,000 6,300,000 Venezuela . ...................... ...... 212,106,968 62,611,024 274,717,992 Yugoslavia .... ....... . ............. 223,165,655 118,431,284 341,596,939 80,000,000 Zambia . . . 22,405,923 35,894,070 58,299,993 5,500,000 Sub-Total members(1) . .....$.... $ 5,876,181,048 $2,743,376,958 $8,619,558,006 $981,150,000 International Finance Corporation ....... 17,500,000 182,500,000 200,000,000 TOTALS . . $5,893,681,048 $2,925,876,958 $8,819,558,006 $981,150,000 Add: Exchange adjustments ... ............ 69,362,203 69,362,203 $5,963,043,251 $8,888,920,209 Summary of Currencies Repayable on Effective (1) Loans are made (a) to the member or (b) to a political sub- Loans Held by Bank division or a public or a private enterprise in the territories of the member with the member's guarantee. A loan has also been made Currency Amount to International Finance Corporation. Argentine pesos ........................ $ 995,815 (2) This does not include $12,825,124 of effective loanswhichthe Australian dollars . . ......................... 80,195,354 Bank has agreed to sell. Of the undisbursed balance, the Bank has Austrian schillings .. . .................... 25,498,052 entered into irrevocable commitments to disburse $46,006,409. Belgian francs . . .......................... 75,814,041 (3) Original principal amount of loans signed $14,597,127,893 Burmese kyats . . . ..... 1,561,404 Deduct: Canadian dollars . .............. ........... 167,864,569 (a) Cancellations,terminations Ceylon rupees ........ ...................... 295,105 and refundings.... ..... $ 322,478,376 Danish kroner . . . . 22,666,672 (b) Principal repayments to Deutsche mark .............................. 1,155,613,256 the Bank .............. 2,126,054,344 Finnish markkaa . ........... 16,073,339 (c) Loans sold or agreed to be French francs .... ........ 145,668,464 sold of which $12,825,124 Ghana new cedis ......... .. .......... 3,653,437 has not yet been disbursed 2,347,887,167 Indian rupees .............. ........... 45,188,684 (d) Loans not yet effective 981,150,000 5,777,569,887 I ranian rials. ...... ... ...... ... ....... ...... 12,998,559 Iraqi dinars ................ .......... 2,108,682 $ 8,819,558,006 Irish pounds .......,.,.,.,.., ........ 10,111,857 Add: Exchange adjustments... . 69,362,203 Israel pounds ....... ............. , 3,076,707 Effective loans held by Bank ... $ 8,888,920,209 Italian lire ..... .......... ............... 114,125,452 Japanese yen ........................... 317,996,306 (4) Agreements providing for these loans have been signed, but Kuwaiti dinars ...........4.......1.......... 47,408,386 the loans do not become effective and disbursementsthereunderdo Luxembourg francs ......................... 3,104,005 not start until the borrowers and guarantors, if any, take certain Malaysian dollars .. 15,692,801 action and furnish certain documents to the Bank. The Bank has Mexican pesos ........... ........... 26,887,217 agreed to sell $1,875,000 of loans not yet effective and thus the Netherlands guilders ........... .......... 121,687,780 total of effective and non-effective loans sold or agreed to be sold Norwegian kroner ......................... 22,776,808 is the equivalent of $2,349,762,167. Portuguese escudos .. ............. 7,920,330 (5) Loan shared by members shown. Pounds sterling .2.................. 232,224,980 Singapore dollars ... .............. 2,370,315 South African rand ......... ................ 33,998,475 Spanish pesetas .. ....... ..... 30,077,188 Sudanese pounds ........ ....... ......... 2,854,577 Swedish kronor .......... ........... . 45,249,236 Swiss francs ....................-......... 201,327,421 New Taiwan dollar ..................... 6,996,734 United States dollars ........................ 2.891,599,040 Disbursed portion of effective loans held by Bank $5,893,681,048 Add: Exchange adjustments .................. 69,362,203 Add: Undisbursed portion of effective loans $5,963,043,251 held by Bank ...... , 2,925,876,958 Effective loans held by Bank ........... ...... $8,888,920,209 90 Summary Statement of Funded Debt Appendix E International Bank for Reconstruction and Development June 30, 1970 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Weighted average Principal Payable in interest rates Due dates outstanding(M Canadian dollars ........ ...... 5.95% 1990-1993 $ 72,913,198 Deutsche mark"' "I ...... ..... 6.28% 1970-1985 1,086,801,366 Italian lire .................... 5.00% 1976 24,000,000 Japanese yen ................. 7.14% 1973-1975 200,000,000 Kuwaiti dinars ............ ... 6.50% 1988 42,000,000 Netherlands guilders ........ .. 5.03% 1975-1988 39,598,067 Pounds sterling ................ 4.41% 1971-1982 31,024,030 Swedish kronor .............. . 6.00% 1992 14,497,768 Swiss francs ....................... 4.40% 1970-1985 180,810,548 United States dollars'"' (i . ..... 5.52%0 . 1970-1994 2,876,660,000 TOTAL $4,568,304,977 (l) The following table shows the aggregate principal amount of maturities, sinking fund requirements, and in the case of certain Canadian issues, non-cumulative purchase fund requirements each year for the five years following the date of this statement: Period Amount July 1, 1970 to June 30, 1971 .$ 509,684,670 July 1, 1971 to June 30, 1972 . .608,557,004 July 1, 1972 to June 30, 1973 . .353,475,239 July 1, 1973 to June 30, 1974 . .366,088,409 July 1, 1974 to June 30, 1975 269,094,008 TOTAL $2,106,899,330 (0) The Bank has arranged to refinance at maturity, August 1, 1970, notes and bonds totaling $30.0 million and DM 130.0 million (US equivalent $35.5 million) by issuing new notes totaling DM 239.8 million (US equivalent $65.5 million) to mature February 1, 1975. (a) In July 1970 the Bank announced that it intends to offer during the latter part of that month in the United States $200 million principal amount of 25-year bonds and that it has signed an agree- ment with a syndicate of German banks for a public issue of DM 200 million (US equivalent $54.6 million) principal amount of 10-year bonds. (0) The Bank had entered into agreements to sell additional bonds totaling $43,525,000 of one out- standing issue. In accordance with these agreements, delivery of such bonds was made against payment therefor on July 8, 1970. 91 Notes to Financial Statements Appendix F International Bank for Reconstruction and Development June 30, 1970 Note A the transactions at any time, with immediate effect as to dollars Amounts in currencies other than United States dollars have then held by the Bank, and, as to dollars loaned, upon repay- been translated into United States dollars: ment of the loans. Such dollars while held by the Bank or on (i) In the cases of 81 members, at the par values as specified loan are not subject to the provisions of Article II, Section 9. in the "Schedule of Par Values," published by the International Such dollars held by the Bank or repayable on loans are shown Monetary Fund; in these financial statements under "United States dollars" (ii) In the cases of the remaining 32 members (Algeria, Argen- and, where relevant, as "unrestricted." tina, Bolivia, Brazil, Cameroon, Central African Republic, Chad, Note C Chile, China, Colombia, Democratic Republic of Congo, Peo- Amounts of commissions set aside pursuant to Article IV, Sec- ple's Republic of Congo, Dahomey, Gabon, Guinea, Indonesia, tion 6, as a Special Reserve to be held in liquid form and to be Ivory Coast, Korea, Laos, Malagasy Republic, Mali, Mauritania, used only for the purpose of meeting liabilities of the Bank on Mauritius, Niger, Paraguay, Peru, Senegal, Southern Yemen, its borrowings and guarantees. Togo, Upper Volta, Viet-Nam and Yemen Arab Republic) at the Note D rates used by such members in making payments of capital Of the $212,869,275 net income earned in the fiscal year ended subscriptions to the Bank; and June 30, 1970, in July the President of the Bank proposed to (iii) In the case of Swiss francs, non-member currency, at the the Executive Directors that they approve the allocation of rate of 4.2975 Swiss francs to 1 United States dollar. $112,869,275 to the Supplemental Reserve Against Losses on See also Nlote B. Loans and Guarantees and from Currency Devaluations and that No representation is made that any currency held by the Bank they recommend to the Board of Governors that an amount is convertible into any other currency at any rate or rates. equal to the balance of $100,000,000 be transferred by way of Note B grant to the International Development Association. These currencies of the several members, and the notes issued Of the $171,437,755 net income earned in the fiscal year ended by them in substitution for any part of such currencies as per- June 30, 1969, the Bank in July 1969, allocated $71,437,755 to mibted under the provison ns of Article V, Section 12 of the the Supplemental Reserve Against Losses on Loans and Guaran- Articles of Agreement of the Bank, are derived from the portion tees and from Currency Devaluations and in October 1969 trans- of the subscriptions to the capital stock of the Bank which e is ferred the balance of $100,000,000 by way of grant to the Inter- payable in the currencies of the respective members (such nabonal Development Association. portion being hereinafter called restricted currency). Such re- Consistent with past practice, the Supplemental Reserve Against stricted currencies may be loaned by the Bank, and funds re. Losses on Loans and Guarantees and from Currency Devalua- ceived by the Bank on account of principal of loans made by tions has been charged and credited during the current fiscal the Bank out of such restricted currencies may be exchanged year with the undermentioned amounts representing a net gain for other currencies or reloaned, only with the approval in each to the Bank as a result of the revaluation of the amounts of case of the member whose restricted currency is involved; pro- earnings held by the Bank at the respective dates of revaluation vided, however, that, if necessary, after the Bank's subscribed in the currencies indicated: capital is entirely called, such restricted currencies may, with- Gaihi (loss) on Date of out restriction by the members whose currencies are offered, Currency resaluation revaluatiso be used or exchanged for the currencies required to meet con- French francs .......... $(5,725,902) August 1969 tractual payments of interest, other charges or amortization on Deutsche mark 8,256,239 October 1969 the Bank's own borrowings or to meet the Bank's liabilities with respect to contractual payments on loans guaranteed by it. Total ......._$ 2,530,337 Under Article II, Section 9, each member is required, if the Note E par value of its currency is reduced or if the foreign exchange In terms of United States dollars of the weight and fineness in value of its currency depreciates to a significant extent in its effect on July 1, 1944. territories, to maintain the value of the Bank's holdings of its Note F restricted currency, including the principal amount of any notes Subject to call by the Bank only when required to meet the obli- substituted therefor, and the Bank is required, if the par value gations of the Bank created by borrowing or by guaranteeing of a member's currency is increased, to return to the member loans. As to $18,527,040,000 the restriction on calls is imposed the increase in the value of such restricted currency held by by the Articles of Agreement; as to $2,315,880,000 by resolu- the Bank. Pursuant to the above provisions, the equivalent of tions of the Board of Governors. $2,867,635 is receivable from 9 members on account of re- General stricted currencies held by the Bank. The Executive Directors have recommended that the Board of To the extent such restricted currencies are out on loan, the Governors adopt a resolution which would authorize certain Bank and the members are obligated to make payments under members of the Bank to make additional subscriptions to the Article II, Section 9 only when such restricted currencies are capital of the Bank. In order to provide the authorized capital recovered by the Bank. necessary for such increases, future increases in members' sub- The equivalent of $41,480,303 would be receivable from three scriptions and subscriptions for new members, the Executive members if such currencies had been recovered at June 30, Directors have also recommended that the Board of Governors 1970, pursuant to the above-mentioned provisions. adopt a resolution whereby the authorized capital of the Bank Some members have converted part or all of the Bank's hold- would be increased by $3,000,000,000. The Board of Governors ings of their restricted currency into United States dollars to be is now voting on these resolutions. As a result of these actions, used and reused as United States dollars in the Bank's opera- the subscribed capital of the Bank may be increased by an tions, subject to the right of the Bank or the member to reverse amount in excess of $2,000,000,000. 92 Opinion of Financial Statements Independent Auditor Covered by the Foregoing Opinion 1707 L STREET, N.W. WASHINGTON, D.C. 20036 JULY 22, 1970 To INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT WASHINGTON, D.C. In our opinion, the accompanying financial statements (Appen- Balance Sheet ...................... Appendix A (page 84) dix A through Appendix F) present fairly, in terms of United Statement of Income and Expenses. Appendix B (page 86) States currency, the financial position of International Bank for Reconstruction and Development at June 30, 1970, and the Statement of Subscriptions to Capital results of its operations for the year then ended, in conformity Stock and Voting Power .......... Appendix C (page 87) with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination of Summary Statement of Loans .Appendix D (page 89) these statements was made in accordance with generally ac- Summary Statement of Funded Debt .... Appendix E (page 91) cepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures Notes to Financial Statements .Appendix F (page 92) as we considered necessary in the circumstances. PRICE WATERHOUSE & CO. 93 Statement of Loans Signed During the Fiscal Year 1969/70 Expressed in United States Currency GUARANTOR Date of Loan Interest Principal Purpose and Borrowen Agreement Maturities rate amount Argentina (Guarantor) Power-Servicios Electricos del Gran Buenos Aires, S.A..... ........... November 14, 1969 1973/1989 7% $ 60,000,000 Australia (Guarantor) Roads-Administration of the Territory of Papua and New Guinea ...... June 24, 1970 1974/1994 7% 4,500,000 Bolivia (Guarantor) Gas Pipeline-Compania Yacibol Bogoc Transportadores ...... ........ July 22, 1969 1971/1990 61/2% 23,250,000 Brazil Roads ....................................................... May 25, 1970 1974/1995 7% 100,000,000 Brazil (Guarantor) Power-Central Eletrica de Furnas, S.A .............................. May 25, 1970 1977/2000 7% 80,000,000 Industry-Banco do Nordeste do Brasil, S.A ......................... February 16, 1970 1973/1987 7% 25,000,000 Cameroon Roads .................... ......................... ............ March 27, 1970 1980/2000 7% 12,000,000 Cameroon (Guarantor) Railways-Regie des Chemins de Fer du Cameroun ................... June 9,1970 1975/1995 7% 5,200,000 Ceylon Agriculture and Power ............................................. January 30, 1970 1976/2000 7% 14,500,000 Ceylon (Guarantor) Industry-Development Finance Corporation of Ceylon . ........ July 18, 1969 1972/1987 61%2% 8,000,000 Power-Ceylon Electricity Board .................................... July 28, 1969 1974/1994 61/2% 21,000,000 Chile Education .............................................. May 7, 1970 1980/1995 7% 7,000,000 Roads ... .................................. June 10, 1970 1974/1995 7% 10,800,000 Chile (Guarantor) Education-Corporaci6n de Fomento de la Producci6n ................. April 23, 1970 1975/1995 7% 1,500,000 China Education ........ ..... ............................... June 19, 1970 1980/1995 7% 9,000,000 China (Guarantor) Industry-China Development Corporation .... May 16, 1970 1972/1982 7% 18,000,000 Power-Taiwan Power Company .................................... May 16, 1970 1975/1990 7% 44,500,000 Colombia Agriculture ..... ..................................... December 29, 1969 1975/1987 7% 18,300,000 Education ................ ....................................... June 4, 1970 1980/2000 7% 6,500,000 Roads .......... ......................... June 4, 1970 1974/1995 7% 32,000,000 Colombia (Guarantor) Power-Interconexi6n Electrica, S.A ...................... ........ June 4, 1970 1977/2000 7% 52,300,000 Water Supply and Sewerage-Establecimiento P6blico Empresas Municipales de Cali ................ .................... June 4,1970 1974/1995 7% 18,500,000 Costa Rica Roads ............. ................................ April 2,1970 1976/2000 7% 15,700,000 Costa Rica (Guarantor) Power-Instituto Costarricense de Electricidad ....................... July 10, 1969 1973/1994 6'A% 12,000,000 Telecommunications-Instituto Costarricense de Electricidad ........... July 10, 1969 1973/1989 6 /,% 6,500,000 Cyprus (Guarantor) Power-Electricity Authority of Cyprus . .................. December 24, 1969 1973/1990 7% 5,000,000 Dominican Republic (Guarantor) Industry-Falconbridge Dominicana, C. por A ........................ December 10, 1969 1973/1984 7% 25,000,000 Greece (Guarantor) Industry-National Investment Bank for Industrial Development, S.A ........................................... April 15, 1970 1972/1986 7% 20,000,000 Honduras Power ............................................ June 24, 1970 1974/1990 7% 5,500,000 India (Guarantor) Industry-The Industrial Credit and Investment Corporation of India Limited ..................................... June 3, 1970 1973/1987 7% 40,000,000 Iran Roads.... .......... .............................. June 29, 1970 1975/1995 7% 42,000,000 Iran (Guarantor) Agriculture-Agricultural Development Fund of Iran .................. March 25, 1970 1974/1984 7% 6,500,000 Israel (Guarantor) Industry-Industrial Development Bank of Israel Limited .............. June 15, 1970 1972/1984 7% 25,000,000 Ivory Coast Education ................................... ............. April 27, 1970 1979/1999 7% 11,000,000 Agriculture ..... ..................... .................... June 5,1970 1977/1985 7% 7,500,000 94 Appendix G International Bank for Reconstruction and Development GUARANTOR Date of Loan Interest Principal Purpose and Borrower Agreement Maturities rate amount Jamaica Family Planning ................ .. ....................... June 18, 1970 1975/1990 7% $ 2,000,000 Kenya Roads ............ ..................................... October 10, 1969 1979/1994 7% 23,500,000 Agriculture .......................... ...................... November 7,1969 1979/1994 7% 2,600,000 Kenya, Tanzania and Uganda (Guarantors) Railways-East African Railways Corporation ......................... May 25, 1970 1975/1995 7% 42,400,000 Ports-East African Harbours Corporation ............................ August 25, 1969 1974/1994 61/2% 35,000,000 Telecommunications-East African Posts and Telecommunications Corporation ..................... ......... May 25, 1970 1975/1995 7% 10,400,000 Korea Railways ....................... .......................... May 14, 1970 1974/1995 7% 40,000,000 Liberia (Guarantor) Power-Public Utilities Authority ................................... June 4,1970 1975/1990 7% 7,400,000 Malaysia Agriculture ................................................. May 20, 1970 1977/1994 7% 13,000,000 Agriculture ................................................ May 20, 1970 1974/1982 7% 8,500,000 Mexico (Guarantor) Power-Comision Federal de Electricidad and Nacional Financiera, S.A ......................................... February 27, 1970 1974/1990 7% 125,000,000 Roads-Nacional Financiera, S.A .................................... June 26, 1970 1975/1995 7% 21,800,000 Morocco Roads .................. .............................. November 13, 1969 1974/1989 7% 7,300,000 Agriculture ............................................... . November 13, 1969 1978/1999 7% 46,000,000 Morocco (Guarantor) Industry-Banque Nationale pour le Developpement Economique ....... March 6,1970 1972/1986 7% 15,000,000 Nigeria Roads .............. ........................................ November 6, 1969 1972/1984 7% 10,600,000 Transport Rehabilitation ..... . .. .............................. June 26, 1970 1974/1984 7% 25,000,000 Pakistan (Guarantor) Gas Pipelines-Sui Northern Gas Pipelines Limited ................... June 29, 1970 1973/1991 7% 19,200,000 Panama (Guarantor) Power-Instituto de Recursos Hidraulicos y Electrificaci6n . ........ ... March 16, 1970 1976/1995 7% 42,000,000 Paraguay Roads .................. ............ ...... January 9,1970 1974/1990 7% 6,000,000 Philippines Agriculture ............ ..... .............................. . August 18, 1969 1976/1994 7% 34,000,000 Philippines (Guarantor) Industry-Philippine National Bank ................................. July 10, 1969 1971/1986 6½2% 25,000,000 Singapore (Guarantor) Telecommunications-Singapore Telephone Board .................... December 19, 1969 1974/1990 7% 11,000,000 Industry-The Development Bank of Singapore Limited ............... February 25, 1970 1971/1986 7% 5,000,000 Spain Agriculture ................. ............................... July 17, 1969 1974/1986 61/2% 25,000,000 Education ............... ............................ June 30, 1970 1975/1990 7% 12,000,000 Thailand (Guarantor) Power-Electricity Generating Authority of Thailand. ............ ...... February 10, 1970 1975/1990 7% 46,500,000 Tunisia (Guarantor) Industry-Societe Nationale d'lInvestissement ........................ December 24, 1969 1971/1987 7% 10,000,000 Uruguay Agriculture ................... ............................. June 30, 1970 1974/1982 7% 6,300,000 Yugoslavia Roads ................................................ May 28, 1970 1975/1995 7% 40,000,000 Yugoslavia (Guarantor) Industry-Yugoslav Investment Bank ............................... January 30, 1970 1972/1984 7% 18,500,000 Telecommunications-Yugoslav Investment Bank ..................... February 20, 1970 1975/1990 7% 40,000,000 Zambia Education ................................................. November 20, 1969 1980/1995 7% 5,300,000 Agriculture ................................................ June 5,1970 1976/1994 7% 5,500,000 $1,580,350,000 International Finance Corporation ........................... December 23, 1969 1973/1989 7% 100,000,000(° TOTAL .$1,680,350,000 (This loan incorporates and replaces a $100 million loan made available to IFC in 1966 into a single loan of $200 million. 95 a a IDA Appendices Page A Statement of Condition ......................... 98 B Statement of Income and Expenses .... .... 99 C Statement of Holdings of Currencies and Obligations . .. 100 D Summary Statement of Development Credits .102 E Statement of Subscriptions, Voting Power and Supplementary Resources .103 F Notes to Financial Statements .105 OPINION OF INDEPENDENT AUDITOR .106 G Statement of Development Credits Signed During the Fiscal Year 1969/70 ........................... 107 97 Statement of Condition Appendix A International Development Association June 30, 1970 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Assets 1970 1969 DUE FROM BANKS AND OTHER DEPOSITORIES (See Appendix C) Member currencies Unrestricted ....................................................... $ 34,001,536 $ 32,610,802 Subject to restrictions-Note B ............................................. 60,071,675 61,019,553 $ 94,073,211 93,630,355 Non-member currency (Swiss francs) ..................................... 376,923 _ $ 94,450,134 93,630,355 INVESTMENTS Obligations of governments and their instrumentalities (At cost or amortized cost; face amount $160,540,347-1970, $79,376,000-1969) ........... $ 156,391,027 77,722,926 Time deposits .............................................................. 15,251,652 Accrued interest ....................................................... 1,352,213 514,366 172,994,892 78,237,292 RECEIVABLE ON ACCOUNT OF SUBSCRIPTIONS AND SUPPLEMENTARY RESOURCES (See Appendix C) Non-negotiable, non-interest-bearing, demand obligations Unrestricted . ....................................................... $ 690,733,713 271,445,284 Subject to restrictions-Note B ............................................. 156,673,918 157,035,924 Amounts due on supplementary resources ..................................... - 20,480,962 Amounts required to maintain value of currency holdings-Note C . ........ 2,966,103 4,033,218 850,373,734 452,995,388 RECEIVABLE FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT-Note D ................................................. 162,640,000 92,200,000 RECEIVABLE FROM SWISS CONFEDERATION-Note E .......................... 4,033,353 8,066,705 EFFECTIVE DEVELOPMENT CREDITS HELD BY ASSOCIATION (Including undisbursed balance $681,227,209-1970, $409,559,438-1969) (See Appendix D)-Note F .. .................................. 2,422,677,335 2,007,786,661 ACCRUED SERVICE CHARGE ON DEVELOPMENT CREDITS-Note F ........ ...... 4,017,333 3,661,191 OTHER ASSETS ..................................................... .. 102,000 232,000 TOTAL ....................................................... $3,711,288,781 $2,736,809,592 Liabilities, Subscriptions, Supplementary Resources, Transfers and Accumulated Net Income LIABILITIES Accounts payable and other liabilities ........................................ $ 40,114 $ 69,241 Undisbursed balance of effective development credits (See Appendix D) .......... 681,227,209 409,559,438 Loan from Swiss Confederation (Including proceeds not yet received $4,033,353-1970, $8,066,705-1969) ...... 12,100,058 12,100,058 SUBSCRIPTIONS (See Appendix E)-Note G ........................ ......... 1,014,262,000 1,012,502,000 SUPPLEMENTARY RESOURCES (See Appendix E)-Note G ....................... $1,950,190,000 1,053,750,000 Less portion for which payment is not yet due-Note H . .............. 370,240,000 68,240,000 1,579,950,000 985,510,000 PAYMENTS ON ACCOUNT OF PENDING SUBSCRIPTIONS AND SUPPLEMENTARY RESOURCES ........................................ 102,000 232,000 TRANSFERS FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT-Note D ................ ............................ 385,000,000 285,000,000 ACCUMULATED NET INCOME At beginning of fiscal year-July 1 ........................................... $ 31,836,855 21,388,987 Add-Gain on currency revaluation-Note I ..... ............ 66,928 _ $ 31,903,783 21,388,987 Fiscal year ended June 30 (See Appendix B) ................. 6,703,617 10,447,868 38,607,400 31,836,855 TOTAL .......... ......................... .................... $3,711,288,781 $2,736,809,592 98 Statement of Income and Expenses Appendix B International Development Association For the Fiscal Years Ended June 30, 1970 and June 30, 1969 Expressed in United States Currency-See Notes to Financial Statements, Appendix F July 1-June 30 1969/70 1968/69 Income Income from investments ............................... $ 9,987,030 $ 3,772,571 Income from development credits ........................ 12,490,873 10,821,384 GROSS INCOME .......................... ........... $22,477,903 $14,593,955 Expenses Management Fee paid to International Bank for Reconstruction and Development ................ $15,800,000 $ 4,200,000 Exchange adjustments .................................. (25,714) (53,913) GROSS EXPENSES ................................... $15,774,286 $ 4,146,087 Net Income .............. ................... $ 6,703,617 $10,447,868 99 Statement of Holdings of Currencies and Obligations June 30, 1970 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Non-negotiable, non-interest- bearing, demand obligations on account of Unit of Initial Supplementary Member currency Currency subscriptions resources Total Afghanistan ..... Afghani ................. . $ 606,000 $ 303,000 $ - $ 909,000 Algeria ... .......................... Dinar . ...- .................. 3,627,000 - 3,627,000. Argentina ...................... Peso ............ . . . - 16,947,000 - 16,947,000 Australia ... . Dollar . . ........ 1,121,389 - 19,295,584 20,416,973 Austria ... Schilling . . . 277,117 - 6,196,492 6,473,609 Belgium ... Franc ............. . . 841,098 - 2,940,000 3,781,098 Bolivia .... Peso Boliviano ............ . . - 954,000 - 954,000 Botswana .... Rand ....... .......... - 144,000 - 144,000 Brazil .... , Cruzeiro . . . 16,947,000 - - 16,947,000 Burma .... Kyat . . .- 1,818,000 - 1,818,000 Burundi .... Franc .. ............. - 684,000 - 684,000 Cameroon . .... ......... Franc ................... -. 807,999 .- 807,999 Canada . ....... .......... Dollar .................. 711,013 - 33,935,509 34,646,522 Central African Republic . ............. Franc .................. - 450,000 - 450,000 Ceylon . ....... Rupee ......... - 2,727,000 - 2,727,000 Chad ....................... Franc ........... - 450,000 - 450,000 Chile .......................... .. Escudo . . . 3,177,000 - - 3,177,000 China .. New Taiwan Dollar - 27,234,000 - 27,234,000 Colombia . . Peso ... 3,177,000 - - 3,177,000 Congo, Democratic Republic of .. Zaire . . . 347,904 - - 347,904 Congo, People's Republic of . . Franc ............... 400,000 - 400,000 Costa Rica .. Colon 180,000 - - 180,000 Cyprus .. Pound ..... ............. 684,000 - 684,000 Dahomey ........... ........ ... .. Franc - ...... ............ 399,999 - 399,999 Denmark ..... Krone ..................... 625,127 - 16,492,453 17,117,580 Dominican Republic . ............... Peso 360,000 - - 360,000 Ecuador . Sucre ..................... 585,000 - - 585,000 El Salvador .................. Colon . . .270,000 - - 270,000 Ethiopia ... ........... ....... Dollar ................... . . - 450,000 - 450,000 Finland .................. Markka . . . 1,626,063 - 249,678 1,875,741 France ...... ................. Franc ......... 3,482,371 - 73,728,122 77,210,493 Gabon .................... ....... Franc - .................. 450,000 - 450,000 Gambia, The ....... Pound - .................. 240,300 - 240,300 Germany ....... Deutsche Mark 2,025,464 - - 2,025,464 Ghana ....... New Cedi ................ - 2,124,000 - 2,124,000 Greece ..... ................... Drachma . . . 2,268,000 - - 2,268,000 Guatemala .............................. Quetzai 360,000 - - 360,000 Guinea ........ . Franc ............. ..... 909,000 - - 909,000 Guyana .................. Dollar - 729,000 - 729,000; Haiti .................. Gourde - 684,000 - 684,000 Honduras .................. Lempira . . . 270,000 - - 270,000 India .................. . Rupee 597,676 30,657,333 - 31,255,009 Indonesia .................. Rupiah 9,990,000 - - 9,990,0oo Iran .................. Rial - 4,086,000 - 4,086,000 Iraq .................. Dinar - 684,000 - 684,000 Ivory Coast .................. Franc - 807,999 - 807,999 Japan Yen. . . 654,531 - 51,125,556 51,780,087 Kenya .................. Shilling . . .- 1,512,000 - 1,512,000 Korea Won . . . 1,133,960 - 1,133,960 Kuwait ............................... Dinar . . .288,740 - 4,108,760 4,397,500 Laos Kip 210,000 240,000 - 450,000 Lebanon ............ .. Pound ... . .............. 405,000 - - 405,000 Lesotho ...................Rand . . .- 144,000 - 144,000 Liberia .. . Dollar - . . .- 684,000 - 684,000 Libya ................... .............. Pound ... . . .- 909,000 - 909,000 100 Appendix C International Development Association Non-negotiable, non-interest- bearing, demand obligations on account of Unit of Initial Supplementary Member currency Currency subscriptions resources Total Malagasy Republic .......... Franc ................ .. $ 181,800 $ 727,200 $ - $ 909,000 Malawi ........... Pound .......... ........ - 684,000 - 684,000 'Malaysia .......... Dollar .................. - 2,268,000 - 2,268,000 Mali .......... Franc ............... ... 783,000 - - 783,000 Mauritania........ .. Franc .................. - 450,000 - 450,000 Mauritius . . ....... . Rupee .................. 1,799 772,201 - 774,000 Mexico .......... Peso . ............. 6,854,737 - - 6,854,737 Morocco .......... Dirham .................. - 3,177,000 - 3,177,000 Nepal .......... Rupee . ................. - 450,000 - 450,000 Netherlands .......... Guilder . ........... 882,154 - 22,326,298 23,208,452 Nicaragua .......... Cordoba . ........... 270,000 - - 270,000 Niger .......... Franc . .......... - 399,999 - 399,999 Nigeria .......... Pound . ............. .... - 3,024,000 - 3,024,000 Norway .......... Krone . ..... 631,893 - 1,434,999 2,066,892 Pakistan .......... Rupee ........ .......... - 9,081,000 - 9,081,000 Panama .......... Balboa .................. 3,598 - - 3,598 Paraguay ......... . Guarani ........ .......... 270,000 - - 270,000 Peru .......... Sol . ........... - 1,593,000 - 1,593,000 Philippines .... Peso . . .......... 2,209,846 2,326,154 - 4,536,000 Rwanda ...... Franc . ............ 684,000 - - 684,000 Saudi Arabia ...... Riyal ................. - 3,330,000 - 3,330,000 Senegal .. .. . . . Franc ............ ... - 1,343,998 - 1,343,998 Sierra Leone . . . ... Leone ................ - 684,000 - 684,000 Somalia ...... Shilling ............_..... - 684,000 - 684,000 South Africa ...... Rand .................. 1,715,786 - - 1,715,786 Spain ... .......... ................... Peseta ...... .... 4,931,350 1,556,743 - 6,488,093 Sudan .... Pound .................. - 909,000 - 909,000 Swaziland .... Rand .... .............. - 288,000 - 288,000 Sweden ............ ... Krona .678,676 - 5,637,902 6,316,578 Syrian Arab Republic ............ Pound .342,000 513,000 - 855,000 Tanzania ............ Shilling.................. - 1,512,000 - 1,512,000 Thailand ............ Baht ........... - 2,727,000 - 2,727,000 Togo ............ ......... Franc ..................6 607,993 - 607,999 Tunisia ........... . .......... Dinar ......... ......... 1,359,000 - 1,359,000 Turkey ............ . Lira ........... -............ 5,220,000 - 5,220,000 Uganda .. Shilling .................. - 1,512,000 - 1,512,000 United Arab Republic ........... Pound .... ..... .. . 4,572,000 - 4,572,000 United Kingdom ........... Pound .. ............... 5,009,797 - 84,261,360 89,271,157 ,United States ....... Dollar .................. 13,430,316 - 369,001,000 382,431,316 Upper Volta ..... .................. .. Franc . .. . - 450,000 - 450,000 Viet-Nam . .......... . Piastre ................ . 1,359,000 - - 1,359,000 Yemen Arab Republic .. ..... .... ... Rial ........ ......... 387,000 - - 387,000 Zambia .. ....................... .. Kwacha ................. - 2,421,000 - 2,421,000 Totals-Member Currencies $94,073,211 $156,673,918 $690,733,713 $941,480,842(l) Non-Member Currency-Unrestricted (Switzerland) 376,923 TOTAL $941,857,765 (a) Of this amountthe equivalentof $724,735,249 is unrestricted and the equivalent of $936,578,479 is subject to maintenance of value-Note C. 101 Summary Statement of Development Credits Appendix D International Development Association June 30, 1970 Expressed in Uniited States Currency-See Notes to Financial Statements, Appendix F Member in whose ~ ~~~~~~~~~Effective developmest credits held by AssnciationDelomn te rritories development Disburse d Undisbursed credits not yet credits have been made(') porties portion(') Total effective(3) Afghanistan................. $ 277,313 $ 8,222,687 $ 8,500,000 $ 5,000,000 Australia: Papua and New Guinea ...... .....980,470 5,519,530 6,500,000 4,500,000 Bolivia.............. ... 16,749,122 9,050,878 25,800,000 Botswana.......3,630,563 2,469,437 6,100,000 Burundi ..................930,736 1,969,264 2,900,000 380,000 Cameroon ................. 6,674,735 15,375,265 22,050,000 7,000,000 Central African Republic ...........151,513 4,048,487 4,200,000 4,300,000 Ceylon ...................389,628 9,010,372 9,400,000 14,500,000 Chad ...................271,740 5,628,260 5,900,000 Chile ................... 18,997,755 .... 18,997,755 China .................... 13,073,716 .-13,073,716 Colombia ............... 19,500,000 - 19,500,000 Congo, Democratic Republic of ............. 319,114 10,680,886 11,000,000 Congo, People's Republic of...... .....457,538 172,462 630,000 1,500,000 Costa Rica ................. 4,550,242 - 4,550,242 Dahomey..................330,517 4,269,483 4,600,000 Ecuador................... 4,770,957 9,829,043 14,600,000 El Salvador ................. 7,999,331 - 7,999,331 Ethiopia .................. 21,206,823 10,693,177 31,900,000 3,100,000 Gambia, The ................- - - 2,100,000 Ghana .................. 8,375,058 7,924,942 16,300,000 8,500,000 Guyana.................. 198,271 2,701,729 2,900,000 Haiti ...................349,855 .- 349,855 Honduras........ ......... 14,304,518 1,623,456 15,927,974 8,100,000 India.................... 1,015,284,994 152,081,844 1,167,366,838 97,500,000 Indonesia ................. 2,872,013 63,127,987 66,000,000 65,500,000 Jordan ................... 8,958,923 1,056,580 10,015,503 Kenya ................... 29,772,061 12,827,939 42,600,000 6,100,000 Korea ................... 26,206,116 17,086,808 43,292,924 15,000,000 Lesotho .................. 4,100,000 - 4,100,000 Malagasy Republic ............. 7,570,249 6,929,751 14,500,000 9,600,000 Malawi. ................ 10,911,164 21,838,836 32,750,000 Mali ................... 5,545,795 3,554,205 9,100,000 7,700,000 Mauritania ....... ......... 4,427,514 5,272,486 9,700,000 Morocco ................. 2,147,785 16,152,215 18,300,000 Nepal ...................27,000 1,673,000 1,700,000 Nicaragua ......... ........ 2,994,834 - 2,994,834 Niger.................... 3,142,115 4,477,109 7,619,224 584,000 Nigeria................... 16,609,593 18,890,407 35,500,000 Pakistan .................. 271,822,454 139,808,100 411,630,554 41,400,000 Paraguay ................. 17,544,425 3,855,575 21,400,000 Rwanda .................9,300,000 Senegal .................. 7,698,746 7,301,254 15,000,000 2,100,000 Sierra Leone ...............- 3,000,000 3,000,000 Somalia ........ .......... 5,470,340 3,579,660 9,050,000 Sudan .. ................ 12,274,825 9,225,175 21,500,000 Swaziland ................. 2,800,000 - 2,800,000 Syrian Arab Republic ............ 2,551,577 5,948,423 8,500,000 - Tanzania .................. 28,838,216 19,561,784 48,400,000 Togo ................... 1,172,660 2,527,340 3,700,000 Tunisia ................._ 14,304,642 18,057,956 32,362,598 10,500,000 Turkey .................. 80,891,955 11,424,032 92,315,987 Uganda .................. 11,015,588 21,984,412 33,000,000 United Arab Republic .............- - - 26,000,000 Upper Volta.................5,027 794,973 800,000 ______ TOTALS ................. $1,741,450,126 $681,227,209 $2,422,677,335 $350,264,000 (1) All developmest credits have been made to member governments or to the government of a territory of a member. (1) Of the undisbursed balance the Association has entered into irrevocable commitments to disburse $873,931. (1) Agreements is the amount of $350,264,000 providing for these developmentcredits have been signed, hut the development credits da not become effective and disbursemests thereunder do nst start until the harrower takes certain action and furnishes certain ducuments to the Association. 102 Statement of Subscriptions, Voting Power Appendix E International Development and Supplementary Resources Association June 30, 1970 Expressed in United States Currency-See Notes to Financial Statements, Appendix F Subscriptions Voting Power Supplementary Resources Total Subscriptions Total Amounts and (Notes C Percent Number Percent Amounts paid in not yet due Supplementary .Member i') and G) of total of votes of total (Notes C and G) (Note H) Resources Australia ............................ $ 20,180,000 1.99 4,536 1.78 $ 35,800,000 $ 8,000,000 $ 63,980,000 Austria . ........... ..... 5,040,000 .50 1,508 .59 10,480,000 2,720,000 18,240,000 Belgium . ................. 8,250,000 .81 2,150 .84 21,850,000 6,800,000 36,900,000 Canada . .................. 37,830,000 3.73 8,066 3.16 116,700,000 - 154,530,000 Denmark .............. ............. 8,740,000 .86 2,248 .88 26,300,000 9,400,000 44,440,000 Finland . ............... ........... 3,830,000 .38 1,266 .49 5,018,000 1,360,000 10,208,000 France . .................. 52,960,000 5.22 11,092 4.34 126,672,000 32,400,000 212,032,000 Germany . ........... ..... 52,960,000 5.22 11,092 4.34 150,600,000 39,000,000 242,560,000 Italy . ................... 18,160,000 1.79 4,132 1.62 30,000,000 - 48,160,000 Japan . .................. 33,590,000 3.31 7,218 2.83 85,570,000 22,160,000 141,320,000 Kuwait . ................. 3,360,000 .33 1,172 .46 6,960,000 1,800,000 12,120,000 Luxembourg . .......................... 375,000 .04 575 .22 775,000 200,000 1,350,000 Netherlands . ................ 27,740,000 2.73 6,048 2.37 36,020,000 9,760,000 73,520,000 Norway . ............ .... 6,720,000 .66 1,844 .72 14,800,000 3,800,000 25,320,000 South Africa ........................... 10,090,000 1.00 2,518 .99 5,990,000 1,000,000 17,080,000 Sweden . ................. 10,090,000 1.00 2,518 .99 74,135,000 20,000,000 104,225,000 United Kingdom . .... ......... 131,140,000 12.93 26,728 10,47 200,280,000 51,840,000 383,260,000 United States . . ......... 320,290,000 31.58 64,558 25.28 632,000,000 160,000,000 1,112,290,000 TOTALS PART I MEMBERS ............ $ 751,345,000 74.08 159,269 62.37 $1,579,950,000 $370,240,000 $2,701,535,000 Afghanistan ........................... $ 1,010,000 .10 702 .27 $ - $ - $ 1,010,000 Algeria . ................. 4,030,000 .40 1,306 .51 - - 4,030,000 Argentina . ............. ... 18,830,000 1.86 4,266 1.67 - - 18,830,000 Bolivia ......................... .. 1,060,000 .10 712 .28 - - 1,060,000 Botswana . .......................... 160,000 .02 532 .21 - - 160,000 Brazil . .................. 18,830,000 1.86 4,266 1.67 - - 18,830,000 Burma . .................. 2,020,000 .20 904 .35 - - 2,020,000 Burundi ..... ....... ............... 760,000 .07 652 .26 - - 760,000 Cameroon . ................ 1,010,000(2) .10 702 .27 - - 1,010,000 Central African Republic . .. ...... 500,000 .05 600 .23 - - 500,000 Ceylon . ..............._ 3,030,000 .30 1,106 .43 - - 3,030,000 Chad ........ ......... 500,000 .05 600 .23 - - 500,000 Chile ................... 3,530,000 .35 1,206 .47 - - 3,530,000 China . .................. 30,260,000 2.98 6,552 2.57 - - 30,260,000 Colombia . ................ 3,530,000 .35 1,206 .47 - - 3,530,000 Congo, Democratic Republic of . . 3,020,000(2) .30 1,104 .43 - - 3,020,000 Congo, People's Republic of . ....... 500,000(2) .05 600 .23 - - 500,000 Costa Rica ....... .................... 200,000 .02 540 .21 - - 200,000 Cyprus ................. 760,000 .07 652 .26 - - 760,000 Dahomey .................. _. ..... 500,000(2) .05 600 .23 - - 500,000 tDominican Republic . ........... 400,000 .04 580 .23 - - 400,000 Ecuador . ................ 650,000 .06 630 .25 - - 650,000 El Salvador . .......................... 300,000 .03 560 .22 - - 300,000 ,Ethiopia . .......................... 500,000 .05 600 .23 - - 500,000 Gabon .................. 500,000 .05 600 .23 - - 500,000 Gambia, The ... ..................... 267,000 .03 553 .22 - - 267,000 Ghana ..... ......... ............. 2,360,000 .23 972 .38 - - 2,360,000 Greece . .................. 2,520,000 .25 1,004 .39 - - 2,520,000 Guatemala . ......................... . 400,000 .04 580 .23 - - 400,000 Guinea . ........... ...... 1,010,000 .10 702 .27 - - 1,010,000 Guyana ................. 810,000 .08 662 .26 - - 810,000 Haiti ................ ........... 760,000 .07 652 .26 - - 760,000 Honduras . .......................... 300,000 .03 560 .22 - - 300,000 Iceland ................. 100,000 .01 520 .20 - - 100,000 India . ............ .............. 40,350,000 3.98 8,570 3.36 - - 40,350,000 Indonesia . ...............- 11,100,000 1.09 2,720 1.07 - - 11,100,000 Iran .................... 4,540,000 .45 1,408 .55 - - 4,540,000 (conti nued) 103 Statement of Subscriptions, Voting Power Appendix E International Development and Supplementary Resources (continued) Association June 30, 1970 Expressed in United States Currency-See NGtes to Financial Statements, Appendix F Subscriptions Voting Power Supplementary Resources Total Subscriptions Total Amounts and (Notes C Percent Number Percent Amounts paid in not yet due Supplementara MemberC') and G) of total of votes ot total (Notes C and G) (Note H) Resourcel Iraq ............... .. ....... $ 760,000 .07 652 .26 $ - $ - $ 760,000 Ireland . .3,030,000 .30 1,106 .43 - - 3,030,000 Israel . .1,680,000 .17 836 .33 - - 1,680,008 Ivory Coast . . 1,010,000(2) .10 702 .27 - - 1,010,000 Jordan . .300,000 .03 560 .22 - - 300,000 Kenya . .1,680,000 .17 836 .33 - - 1,680,000 Korea . .1,260,000 .12 752 .30 - - 1,260,000 Laos . .500,000 .05 600 .23 - - 500,000 Lebanon . .450,000 .04 590 .23 - - 450,000 Lesotho . .160,000 .02 532 .21 - - 160,000 Liberia . .760,000 .07 652 .26 - - 760,000 Libya . .1,010,000 .10 702 .27 - - 1,010,000 Malagasy Republic . .1,010,000 .10 702 .27 - - 1,010,000 Malawi . .760,000 .07 652 .26 - - 760,000 Malaysia . .2,520,000 .25 1,004 .39 - - 2,520,000 Mali . . 870,000 .09 674 .26 - - 870,000 Mauritania . .500,000 .05 600 .23 - - 500,000 Mauritius . .860,000 .08 672 .26 - - 860,000 Mexico . .8,740,000 .86 2,248 .88 - - 8,740,000 Morocco . .3,530,000 .35 1,206 .47 - - 3,530,000 Nepal . .500,000 .05 600 .23 - - 500,000 Nicaragua . .300,000 .03 560 .22 - - 300,000 Niger . .500,000(2) .05 600 .23 - - 500,000 Nigeria . .3,360,000 .33 1,172 .46 - - 3,360,000 Pakistan . .10,090,000 1.00 2,518 .99 - - 10,090,000 Panama . .20,000 (3) 504 .20 - - 20,000 Paraguay . .300,000 .03 560 .22 - - 300,000 Peru . .1,770,000 .17 854 .34 - - 1,770,000 Philippines . .5,040,000 .50 1,508 .59 - - 5,040,000 Rwanda . .760,000 .07 652 .26 - - 760,000 Saudi Arabia . .3,700,000 .36 1,240 .49 - - 3,700,000 Senegal . .1,680,000(2) .17 836 .33 - - 1,680,000 Sierra Leone . .760,000 .07 652 .26 - - 760,000 Somalia . .760,000 .07 652 .26 - - 760,000 Spain . .10,090,000 1.00 2,518 .99 - - 10,090,000 Sudan . .1,010,000 .10 702 .27 - - 1,010,000 Swaziland . .320,000 .03 564 .22 - - 320,000 Syrian Arab Republic . .950,000 .09 690 .27 - - 950,000 Tanzania . .1,680,000 .17 836 .33 - - 1,680,000 Thailand . .3,030,000 .30 1,106 .43 - - 3,030,000 Togo 760,000(2) .07 652 .26 - - 760,00e Tunisia 1,510,000 .15 802 .31 - - 1,510,000 Turkey 5,800,000 .57 1,660 .65 - - 5,800,000 Uganda 1,680,000 .17 836 .33 - - 1,680,000 United Arab Republic 5,080,000 .50 1,516 .60 - - 5,080,000 Upper Volta . .500,000 .05 600 .23 - - 500,000 Viet-Nam 1,510,000 .15 802 .31 - - 1,510,000 Yemen Arab Republic 430,000 .04 586 .23 - - 430,000 Yugoslavia 4,040,000 .40 1,308 .51 - - 4,040,000 Zambia 2,690,000 .27 1,038 .41 - - 2,690,000 TOTALS PART i1 MEMBERS-Note B... $ 262,917,000 25.92 96,083 37.63 $ 262,917,000 GRAND TOTALS . .$1,014,262,000 100.00 255,352 100.00 $1,579,950,000 $370,240,000 $2,964,452,000 (1) Members whose subscriptions may be freely used or exchanged by the Associatioii and who have participated in the replenishment of the Association's resources are included in Part 1. All other members are included in Part 11. (2) Includes amounts aggregating the equivalent of $2,966,103 receivable as a result of revaluation of the currencies of these members. (3) Less than .005 percent. General: $102,000 has been received from Cambodia on account of its subscription pending admission to membership. 104 Notes to Financial Statements Appendix F International Development Association June 30, 1970 Note A Note D Amounts in currencies other than United States dollars have The International Bank for Reconstruction and Development has been translated into United States dollars: authorized transfers, by way of grants, to the Association total- (i) In the cases of 74 members, at the par values as specified ing $385,000,000 from the net income of the Bank for the fiscal in the "Schedule of Par Values," published by the Interna- years ended June 30, 1964 through 1969. Of this amount, tional Monetary Fund; $222,360,000 had been received as of June 30, 1970. (ii) In the cases of the remaining 31 members (Algeria, Argen- Note E tina, Bolivia, Brazil, Cameroon, Central African Republic, Chad, The Association has entered into an agreement to borrow Chile, China, Colombia, Democratic Republic of Congo, Peo- SwF 52 million (approximately US equivalent $12.1 million) ple's Republic of Congo, Dahomey, Gabon, Guinea, Indonesia, from the Swiss Confederation. Of this amount, SwF 34.7 million Ivory Coast, Korea, Laos, Malagasy Republic, Mali, Mauritania, had been received at June 30, 1970; the balance was received in Mauritius, Niger, Paraguay, Peru, Senegal, Togo, Upper Volta, July 1970. The loan carries no interest and is repayable in forty Viet-Nam and Yemen Arab Republic), at the rates used by such annual instalments beginning July 1, 1979. The first ten instal- members in making payments of subscriptions to the Associa- ments will be at 1% each of the principal amount and the re- tion; and maining thirty instalments will be at 3% of such principal (iii) In the case of Swiss francs, non-member currency, at the amount. rate of 4.2975 Swiss francs to 1 United States dollar. Note F Note B Nt The principal disbursed and outstanding on development credits Pursuant to Article IV, Section 1 (a) of the Articles of Agreement and the accrued service charge are expressed in terms of United of the Association, these amounts may be used by the Associa- States dollars of the weight and fineness in effect on January 1, tion for administrative expenses incurred by the Association in 1960 and the equivalent is payable by the borrowers in curren- the territories of any member whose currency is involved and, cies which the Association determines to be freely convertible or insofar as consistent with sound monetary policies, in payment freely exchangeable by the Association for currencies of other for goods and services produced in the territories of such mem- members of the Association, except that such amount would be ber and required for projects financed by the Association and reduced if (a) there is a uniform proportionate reduction in the located in such territories; and in addition when and to the par values of the currencies of all members of the International extent justified by the economic and financial situation of the Monetary Fund or (b) the Association so decides because of a member concerned as determined by agreement between the substantial reduction in the value of one or more major cur- member and the Association, such currency shall be freely con- rencies of members. The foregoing does not apply to a credit vertible or otherwise usable for projects financed by the Associa- of $9,000,000 which is expressed and is repayable in legal tion and located outside the territories of the member, tender dollars. Note C Note G Under Article IV, Section 2, each member is required, if the par Subscriptions and supplementary resources are expressed in value of its currency is reduced or the foreign exchange value terms of United States dollars of the weight and fineness in of its currency has in the opinion of the Association depreciated effect on January 1, 1960. to a significant extent within that member's territories, to main- tain the value of the Association's holdings of its ninety percent Note H currency, including the principal amount of any notes substituted therefor, and the Association is required if the par value of the The second Replenishment 9t6o9 Seventeen Part I Countries with member's currency is increased, or the foreign exchange value .cntribution agai $1,140.9 milin, Payabl infrieel of the member's currency has in the opinion of the Association contrbutions aggregating $1,140.96 millicn, payable in freely appreciated to a significant extent within that member's ter- convertble currences, have particpated m the replemshment ritories, to return to the member the increase in the value of One Part I Country has not yet deposited notification of accept- such ninety percent currency held by the Association; provided, ance, but is expected to do so on completion of action on pend- however, that the foregoing shall apply only so long as and to ng legislation $785 84 million has been paid and the balance, the extent that such currency shall not have been initially dis- $355.12 million, is due in November 1970. In addition, a total bursed or exchanged for the currency of another member. of $15.12 million, in freely convertible currencies, is due during the year ending June 30, 1971 from two Countries which have Supplementary resources of the Association have, by agreement, made special supplementary contributions to the Association. the same respective rights and obligations as to maintenance of value as are set forth in Article IV, Section 2, of the Articles of Note I the Association. The accumulated net income has been credited with $66,928 The equivalent of $2,966,103 is due from eight members in representing a gain to the Association as a result of the revalua- order to maintain the value of the Association's currency hold- tion of the amount of earnings in Deutsche mark held by the ings as required under Article IV, Section 2. Association at the date of revaluation, October 1969. 105 Opinion of Financial Statements Independent Auditor Covered by the Foregoing Opinion 1707 L STREET, N.W. WASHINGTON, D.C. 20036 JULY 22, 1970 To INTERNATIONAL DEVELOPMENT ASSOCIATION WASHINGTON, D.C. In our opinion, the accompanying financial statements (Appen- Statement of Condition .Appendix A (page 98) dix A through Appendix F) present fairly, in terms of United Statement of Income and Expenses . Appendix B (page 99) States currency, the financial position of International Develop- ment Association at June 30, 1970, and the results of its opera- Statement of Holdings of Currencies and tions for the year then ended, in conformity with generally Obligations ......... Appendix C (page 100) accepted accounting principles applied on a basis consistent State t f DeI nt with that of the preceding year. Our examination of these state- Summary atemen o evelopmen ments was made in accordance with generally accepted auditing Credits. ... Appendix D (page 102) standards, and accordingly included such tests of the accounting Statement of Subscriptions, Voting Power records and such other auditing procedures as we considered and Supplementary Resources ...... Appendix E (page 103) necessary in the circumstances. Notes to Financial Statements . Appendix F (page 105) PRICE WATERHOUSE & CO. 106 Statement of Development Credits Appendix G International Development Signed During the Fiscal Year 1969/70 Association Expressed in United States Currency Date of Credit Service Principal Borrower and Purpose Agreement Maturities charge amount - Afghanistan Agriculture .................... .............................. June 24, 1970 1980/2019 34 % $ 5,000,000 Australia (Guarantor) Agriculture-Papua and New Guinea ................ .............. January30, 1970 1979/2019 3 /4% 5,000,000 Roads-Papua and New Guinea .................................. June 24, 1970 1980/2020 3/4% 4,500,000 Bolivia Agriculture .................................................. January 13, 1970 1980/2019 3/4%% 1,400,000 Botswana Project Preparation ............................................. January 15, 1970 1979/2019 3/4% 2,500,000 Burundi Project Preparation ........... ............... .............. June 19, 1970 1972/1980 3/4% 380,000 Cameroon Education ......................... ......................... September 23, 1969 1979/2019 3/4% 10,500,000 Roads .................................................. March 27, 1970 1980/2019 34% 7,000,000 Central African Republic Roads .................................................. June 19, 1970 1980/2020 34% 4,300,000 Ceylon Agriculture .................................................. November 13, 1969 1979/2019 3/ 4% 2,500,000 Agriculture and Power .......J............... ............ January 30, 1970 1980/2019 Y4% 14,500,000 Congo, Democratic Republic of Industry ............................ ....................... May 28, 1970 1980/2019 3 4 % 5,000,000 Congo, People's Republic of Roads .................................................. May 28, 1970 1980/2020 34% 1,500,000 Ecuador Agriculture ...................... ....................... January 20, 1970 1980/2019 Y4 % 1,500,000 Ethiopia Agriculture .................. ................................ November 26, 1969 1979/2019 3/4% 3,500,000 Agriculture ........ .......................................... May 28, 1970 1980/2020 34% 3,100,000 Gambia, The Port ........................................ ....... May 26, 1970 1980/2020 34% 2,100,000 Ghana Water Supply and Sewerage ... ..................... ............ August 28, 1969 1979/2019 34 % 3,500,000 Fisheries ........................... ....................... September 25, 1969 1979/2019 3 /4% 1,300,000 Agriculture .............................................. .... June 26, 1970 1980/2020 3/ 4% 8,500,000 Project Preparation .......................................... July 29, 1969 1971/1979 3/4% 1,500,000 Honduras Agriculture ................ .................................. March 2,1970 1980/2019 Y3/% 2,600,000 Power .................................................. June 24, 1970 1980/2020 34% 5,500,000 , India Railways .................. ................................ September 24, 1969 1979/2019 3/4% 55,000,000 Agriculture .................................................. February 9, 1970 1980/2019 34% 35,000,000 Industrial Imports ...................... ....................... April 24, 1970 1980/2020 3/4% 75,000,000 Agriculture .................................................. June 3, 1970 1980/2019 3 /4% 35,000,000 Agriculture .................................................. June 24, 1970 1980/2020 3 4% 27,500,000 Indonesia Power .............................. October 29, 1969 1979/2019 34 % 15,000,000 Industry ............................................... June 15, 1970 1980/2020 34% 30,000,000 Agriculture .......................................... ..... June 15, 1970 1980/2020 3 4% 17,000,000 Agriculture ............................................... June 15, 1970 1980/2020 3 4% 18,500,000 Kenya Education ............................................... May 20, 1970 1980/2020 3 4% 6,100,000 (continued) 107 Statement of Development Credits Appendix G International Development Signed During the Fiscal Year 1969/70 (continued) Association Expressed in United States Currency Date of Credit Service Principal Borrower and Purpose Agreement Maturities charge amount Korea Railways ........ ....................................... May 14, 1970 1980/2019 3% $15,000,000 Malagasy Republic Port ............................................. ...... ... June 19, 1970 1980/2020 3 4 % 9,600,000 Malawi Power ............................................... February 11, 1970 1980/2019 3/4% 5,250,000 Mali Roads ............................................... June 17, 1970 1980/2020 34% 7,700,000 Morocco Roads.... ....................................... ....... . November 13, 1969 1980/2019 3 4 % 7,300,000 Nepal Telecommunications ....... ...................................... November 10, 1969 1979/2019 3 4% 1,700,000 Niger Agriculture ...................................................... June 29, 1970 1980/2020 3/4% 584,000 Pakistan Industry ................. ......... .. .......... February 11, 1970 1980/2019 3 4% 20,000,000 Agriculture ............. .. ........................ ... May 14, 1970 1980/2019 3/4% 13,000,000 Telecommunications ....................... ...................... May 22, 1970 1980/2020 34% 15,000,000 Industry ........J......... ........ ... June 10, 1970 1980/2020 3/4% 3,000,000 Education .............................................. June 29, 1970 1980/2020 34% 8,000,000 Agriculture .................................... June 30, 1970 1980/2020 3 /4% 14,000,000 Project Preparation . ...................................... December 15, 1969 1972/1980 3 /4% 800,000 Project Preparation ................................... June 10, 1970 1972/1979 3 4% 1,000,000 Project Preparation ............................... ............... June 10, 1970 1973/1980 34% 2,400,000 Rwanda Roads ................ ............................... June 17, 1970 1980/2020 34% 9,300,000 Senegal Roads ............................................... June 19, 1970 1980/2020 3 4% 2,100,000 Sierra Leone Education ................ ............................... January 5,1970 1980/2019 3/4% 3,000,000 Tanzania Roads ..... ........................................... November 24,1969 1979/2018 34% 7,500,000 Tunisia Water Supply ............................................. .. June 30, 1970 1980/2020 3 4% 10,500,000 Uganda Roads ............................................... September 29,1969 1980/2019 3 4% 11,600,000 United Arab Republic Agriculture. ............................................... April 17, 1970 1979/2019 3 4% 26,000,000 TOTAL ........................................ .............. ........................... .......... $605,614,000 108 Bank/IDA Appendices Page 1 Bank Loans and IDA Credits by Purpose and Area ..... 110 2 Bank Loans and IDA Credits by Country ...... ....... 112 3 Administrative Budgets of the Bank and IDA ......... 114 .4 Governors and Alternates of the Bank and IDA . ..... 115 5 Executive Directors and Alternates of the Bank and IDA and their Voting Power.......... ... 117 6 Officers and Department Directors of the * Bank and IDA ..... ............ 118 109 Bank Loans and IDA Credits by Purpose and Area Cumulative Total, June 30, 1970 (Millions of US dollars, initial commitments net of cancellations and refundings) Bank Loans by Area Total Asia and Western Bank and Middle Austral- Hemi- Purpose IDA Total Africa East asia Europe sphere IFC GRAND TOTAL ......................... $17,047.7 $14,274.6 $2,014.5 $4,628.2 $514.6 $2,565.1 $4,352.2 $200.0 ELECTRIC POWER ... $ 4,805.0 $ 4,642.2 $ 512.4 $ 956.3 $148.2 $ 646.1 $2,379.1 $ TRANSPORTATION ..................... $ 5,252.1 $ 4,405.4 $ 915.8 $1,750.3 $ 58.0 $ 585.6 $1,095.8 $ Railways ................ ........... 2,042.2 1,688.8 446.8 734.1 42.0 272.4 193.5 Shipping .......................... . 12.0 12.0 - - - 12.0 - - Ports and waterways ........ . .......... 519.2 481.9 169.6 162.0 6.7 98.4 45.3 - Roads ..... ...................... 2,527.3 2,071.3 249.4 792.5 - 195.6 833.8 - Airlines and airports ...................... 22.0 22.0 - 5.6 9.2 7.2 - - Pipelines ...... ..................... 129.5 129.5 50.0 56.2 - - 23.3 - TELECOMMUNICATIONS ................ $ 379.7 $ 243.9 $ 37.1 $ 65.4 $ - $ 40.3 $ 101.1 $ - AGRICULTURE, FORESTRY AND FISHING $ 1,919.1 $ 1,294.1 $ 199.1 $ 536.8 $ _ $ 124.8 $ 433.5 $ - Farm mechanization ....... ............ 24.4 24.4 5.0 9.0 - 2.0 8.4 Irrigation and flood control .......... .... 1,029.1 707.1 81.0 429.9 85.3 111.0* - Land clearance, farm improvement, etc.. . 107.6 80.7 24.2 45.3 - 2.2 9.0 Crop processing and storage .............. 38.1 12.2 5.2 2.0 - 4.2 0.8 Livestock improvement .................. 234.1 203.3 5.3 4.4 - 25.0 168.6 - Forestry and fishing ..................... 42.9 41.6 7.9 22.2 - 6.2 5.3 - Agricultural credit ...... __ . ....... .... 358.8 197.1 42.8 24.0 - - 130.4 - Smallholders and plantations ............. 84.1 27.7 27.7 - - - _ INDUSTRY ........................... $2,269.8 $2,165.8 $ 249.0 $1,141.5 $ _ $ 555.7 $ 219.6 $ Iron and steel . ......................... 399.0 399.0 - 344.1 - 25.0 30.0 - Pulp and paper . ............. 133.7 133.7 - 4.2 - 109.5 20.0 - Fertilizer and other chemicals . ....... 171.4 141.4 30.0 57.0 - 54.4 - - Other industries . ............. 274.1 264.7 20.5 5.2 - 203.6 35.4 - Mining, other extractive . ......... 179.1 179.1 101.0 19.5 - 11.9 46.7 Development finance companies .......... 1,112.6 1,048.0 97.5 711.6 - 151.4 87.5 - GENERAL DEVELOPMENT AND PROGRAM LOANS ..................... $ 1,207.3 $ 552.3 $ 40.0 $ 103.8 $308.5 $ 100.0 $ - $ EDUCATION ........................... $ 323.7 $ 144.5 $ 40.3 $ 29.8 $ - $ 12.0 $ 62.4 $ - FAMILY PLANNING ..................... $ 2.0 $ 2.0 $ - $ - $ - $ - $ 2.0 $- WATER SYSTEMS ....................... $ 175.1 $ 127.1 $ 20.0 $ 44.4 $ - $ 3.9 $ 58.8 $ - POST-WAR RECONSTRUCTION --- $ 496.8 $ 496.8 $ $ $ - $ 496.8 $ - $ - PROJECT PREPARATION AND. TECHNICAL ASSISTANCE.......... $ 17.6 $ 0.9 $ 0.9 $ - $ - $ - $ $ - FINANCING LOAN (IFC) .. ...... $ 200.0 $ 200.0 $ - $ - $ - $ - $ - $200.0 Note: Multipurpose loans are distributed according to each purpose and not assigned to the major purpose. Detail may not add to totals because of rounding. *lncludes Loan No. 559 Guyana, Sea defense project. 110 Appendix 1 IDA Credits by Area Asia and Western Middle Hemi- * Total Africa East Europe sphere $2,773.1 $548.1 $1,989.6 $92.3 $143.1 . $ 162.8 $ 15.3 $ 89.9 $25.7 $ 31.9 $ 846.7 $267.1 $ 502.3 $ - $77.3 353.4 26.6 326.8 - - 37.3 11.7 25.6 - - 456.0 228.8 149.9 - 77.3 $ 135.8 $ 0.8 $ 135.0 $ - $ - $ 625.0 $119.9 $ 450.3 $31.9 $ 22.9 322.0 39.0 251.1 31.9 - 26.9 26.9 - - - 25.9 6.7 19.2 - - 30.8 7.9 - - 22.9 1.3 1.3 - - - 161.7 21.2 140.5 - - 56.4 16.9 39.5 - - $ 104.0 $ 5.0 $ 64.3 $34.7 $ - 30.0 - 30.0 - - 9.4 - 9.4 - - 64.6 5.0 24.9 34.7 - $ 655.0 $ - $ 655.0 $ - $ - $ 179.2 $118.9 $ 52.3 $ - $ 8.0 $ - $ - $ - $- $ - $ 48.0 $ 15.1 $ 29.9 $- $ 3.0 $ - $ - $ - $- $ - $ 16.7 $ 6.1 $ 10.6 $ - $ - $_- $ - $ - $- $ - 111 Bank Loans and IDA Credits by Country Cumulative Total, June 30, 1970 Expressed in United States Currency-Initial commitments net of cancellations, refundings and terminations Bank Loans IDA Credits Total Country Number Amount Number Amount Number Amount Afghanistan ............................ - $ - 3 $ 13,500,000 3 $ 13,500,000 * Algeria .......................... .. 3 80,500,000 - - 3 80,500,000 Argentina ........ .................... 7 357,602,049 - - 7 357,602,049 Australia ............................ 7 417,730,000 - - 7 417,730,000 Austria ......................... ... 9 104,860,083 - - 9 104,860,083 Belgium ....... ..................... 4 76,000,000 - - 4 76,000,000 Bolivia ............................ 1 23,250,000 5 25,800,000 6 49,050,000 Botswana .............. .............. - - 2 6,100,000 2 6,100,000 Brazil ........... ...... ........... 29 838,034,660 - - 29 838,034,660 Burma ............................. 3 33,123,943 - - 3 33,123,943 Burundi .........................1.... 4,800,000 3 3,280,000 4 8,080,000 Cameroon ............ ............ 5 37,100,000 4 29,050,000 9 66,150,000 Central African Republic .................. - - 2 8,500,000 2 8,500,000 Ceylon ......... .................... 8 89,712,258 4 23,900,000 12 113,612,258 Chad ............................. - - 2 5,900,000 2 5,900,000 Chile ............................. 18 232,695,818 1 18,997,755 19 251,693,573 China ........... .................. 12 244,072,087 4 13,073,716 16 257,145,803 Colombia ............................. 43 727,652,840 1 19,500,000 44 747,152,840 Congo, Democratic Republic Of ............. 5 91,582,854 2 11,000,000 7 102,582,854 Congo, People's Republic Of .............. 1 30,000,000 2 2,130,000 3 32,130,000 Costa Rica ............................ 11 84,876,251 1 4,550,243 12 89,426,494 Cyprus ............................. 4 34,194,412 - - 4 34,194,412 Dahomey ............ ......... . .......... - 1 4,600,000 1 4,600,000 Denmark ...... .................... 3 85,000,000 - - 3 85,000,000 Dominican Republic ... .......... 1 25,000,000 - - 1 25,000,000 Ecuador ............................ 9 63,300,000 3 14,600,000 12 77,900,000 El Salvador ............................ 9 57,918,024 1 7,999,331 10 65,917,355 Ethiopia .... 11 97,800,000 5 35,000,000 16 132,800,000 Finland .. .................. 14 243,526,846 - - 14 243,526,846 France ................ ............ 1 250,000,000 - 1 250,000,000 Gabon . ................... .. 4 54,788,722 - - 4 54,788,722 Gambia,The ....... ............... _ - 1 2,100,000 1 2,100,000 Ghana .... ................ .......... 2 53,000,000 5 24,800,000 7 77,800,000 Greece... ................ ..... 2 32,500,000 - - 2 32,500,000 Guatemala ........ .................... 4 46,500,000 - - 4 46,500,000 Guinea ...... ...... ...... 2 64,500,000 - - 2 64,500,000 Guyana ...... .......... 3 8,819,017 1 2,900,000 4 11,719,017 Haiti ...... ............1 . ........ 2,600,000 1 349,855 2 2,949,855 Honduras ................. 9 52,317,613 5 24,027,974 14 76,345,587 Iceland ... .............. 1............ 25,914,000 - - 7 25,914,000 India. . ............................... 39 1,087,653,602 28 1,264,866,838 67 2,352,520,440 Indonesia .. ...... ... -. - 8 131,500,000 8 131,500,000 Iran ............ 15 447,397,565 - - 15 447,397,565 Iraq . ........... ............. . 2 25,293,946 - - 2 25,293,946 Ireland ........................ ... 1 14,500,000 - - 1 14,500,000 Israel . .. .... 6 134,412,479 - - 6 134,412,479 Italy .......................... . . 8 398,028,000 - - 8 398,028,000 Ivory Coast(O ...... ... 7 48,491,567 - - 7 48,491,567 Jamaica ......................... 6 44,012,988 - - 6 44,012,988 Japan .......... ................ . 31 857,041,004 - - 31 857,041,004 Jordan .... ........................ - - 4 10,015,502 4 10,015,502 Kenya(2). ... . . 10 197,524,026 10 48,700,000 20 246,224,026 Korea ... ................... 110,000,000 5 58,292,924 9 168,292,924 Lebanon ..... ...... ........... 1 27,000,000 - - 1 27,000,000 Lesotho .......... ............ 1 4,100,000 1 4,100,000 Liberia .. ........ ............. 4 15,249,812 - - 4 15,249,812 112 Appendix 2 Book Loans IDA Credits Total Country Number Amount Number Amount Number Amount -tuxembourg .......... ..... 1 $ 11,761,983 - $ - 1 $ 11,761,983 Malagasy Republic .... ........ 3 11,100,000 3 24,100,000 6 35,200,000 Malawi ....... .......... -- 6 32,750,000 6 32,750,000 ~Valaysia ......... .. .. ., .. 13 237,878,513 - . 13 237,878,513 Mali(') ..... ............ 2 16,800,000 2 16,800,000 - Malta .... ............. 1 6,040,080 - - 1 6,040,080 Mauritania ........... .... 1 66,000,000 2 9,700,000 3 75,700,000 Mauritius ....... ... ..... 1 6,973,119 - - 1 6,973,119 Mexico ......... .. ..... 24 978,705,679 - .- 24 978,705,679 Morocco .............. ... 8 143,049,041 2 18,300,000 10 161,349,041 Nepal ................ .. - - 1 1,700,000 1 1,700,000 - Netherlands ......... ...... 10 236,451,985 - -.. 10 236,451,985 New Zealand . ...... .. ..... 4 96,923,771 - - 4 96,923,771 Nicaragua .... ... .. .. 15 59,858,828 1 2,994,834 16 62,853,662 Niger ...... .. ...... .. --3 8,203,224 3 8,203,224 Nigeria .................. 10 241,600,000 2 35,500,000 12 277,100,000 - Norway .... ..... .... ... 6 145,000,000 - - 6 145,000,000 Pakistan. , ......... ..... 31 633,470,130 36 453,218,054 67 1,086,688,184 Panama .......... .... . 6 60,047,426 - - ~ 6 60,047,426 Papua and New Guinea .........2 11,500,000 3 11,000,000 5 22,500,000 Paraguay ...............6 21,838,549 4 21,400,000 10 43,238,549 Peru ................. .. 23 214,102,066 - - 23 214,102,066 Philippines ...... .... ..... 13 217,020,336 - - 13 217,020,336 - Portugal ........ .... .... 5 57,500,000 - - 5 57.500,000 Rhodesia(3) ..... .. .. .. 3 86,950,000 - 3 86,950,000 Rwandia .............. ... - - 1 9,300,000 1 9,300,000 Senegal(') ........... ... .. 2 7,500,000 3 17,100,000 5 24,600,000 Sierra Leone ......... .. .... 2 7,700,000 1 3,000,000 3 10,700,000 Singapore ........ ... .... 10 114,243,457 - - 10 114,243,457 Somalia ............... .. - 3 9,050,000 3 9,050,000 South Africa ..... .... ...... 11 241,800,000 - 11 241,800,000 -Spain ........ ....... 6 224,161,832 - - 6 224,161,832 Sudan ... .............. 6 134,000,000 2 21,500,000 8 155,500,000 Swaziland ................ 2 6,950,000 1 2,800,000 3 9,750,000 Syria ....... . .. .... --1 8,500,000 1 8,500,000 Tanzania(2).. . . .. ... 2 12,200,000 8 48,400,000 10 60,600,000 Thailand .... .. .. .. ..... 21 358,364,939 - - 21 358,364,939 logo. .~.. .. ... .... .. - 1 3,700,000 1 3,700,000 Trinidad and Tobago ............ 5 46,390,424 - - 5 46,390,424 Tunisia .............. ... 9 76,835,481 5 42,862,598 14 119,698,079 -.Turkey ....... ... ... .. 11 144,184,967 8 92,315,987 19 236,510,954 Uganda(25 . .... .. ..1 8,400,000 5 33,000,000 6 41,400,000 United Arab Republic ........ ... 1 56,500,000 1 26,000,000 2 82,500,000 Upper Voltars) ......... ..... - 1 800,000 1 800,000 Uruguay ......... ... . ... 7 108,463,116 - - 7 108,463,116 Venezuela ..... ....... .... 9 298,266,783 - - ~ 9 298,266,783 Yugoslavia ...... ..... ..... 16 475,490,547 -. -. 16 475,490,547 Zambia(3)............. .... 10 131,550,000 - - 10 131,550,000 International Finance Corporation ...1 200,000,000 - -. 1 200,000,000 TOTAL. ... ......... ..705 $14,274,649,518 221 $2,773,128,835 926 $17,047,778,353 (') One loan for $7.5 milliono shomn against Ivory Coast is shared with Mali, Senuega[ and Upper Volta. (2) Three loans totaling $75 million shown against Kenya are shared with Tanzania and Uganda. (') Three soans totaling $106.7 million hone been assigned in equal shares to Rhodesia and Zambia. 1 13 Administrative Budgets Appendix 3 of the Bank and IDA For the Fiscal Year Ending June 30, 1971 Actual Expenses Budgets 1970 1971 (thousands of US dollars) BY ORGANIZATIONAL UNIT Board of Governors ............... ............. ..... 768 1,013 Executive Directors ............ .................... 2,495 3,003 Executive offices .......... ......................... 1,169 1,068 Area departments . . ................................. 12,995 15,831 Projects departments . . .............................. 17,551 23,734 Cooperative Programs, FAO and Unesco . ...... 2,056 2,901 Development Finance Companies Department ........... 1,476 1,870 Economic staff . ................ .................... 4,870 5,845 Controller's and Treasurer's Departments, Internal Auditor .......................... ..... 3,290 3,955 Administration Department . . ....... 6,126 7,281 Other departments .......... . ..................... 7,734 9,255 Training programs, EDI . . ....... 1,660 1,915 Settlement of Investment Disputes, ICSID ............. 81 84 Grants for consultants to member countries ............ 376 434 Commission on international development .......... ... 305 - Contingency allowance ............................... _ 1,150 TOTALS ...................................... 62,952 79,339 Less: IFC Service and Support Fee ........ ........... -1,699 -1,749 TOTALS IBRD/IDA ........... .................... 61,253 77,590 BY EXPENSE CATEGORY Personal services ................................... 37,977 47,287 Operational travel ................................... 7,534 8,930 Representation ........... .......................... 339 362 Consultants . ........ ........ ...... 2,672 4,160 Contractual services ...................... 1,996 2,364 Overhead expenses: Staff benefits ............ ......................... 1,408 1,919 Other travel ............... ................... ... 2,789 3,885 Office occupancy .................................. 4,558 4,961 Communications ......................... .... ... 1,512 1,784 Other expenses .......... ......................... 2,167 2,537 Contingency . ......-............. . ...........-... 1,150 TOTALS ................... ............ 62,952 79,339 Less: IFC Service and Support Fee .......... .... -1,699 -1,749 TOTALS IBRD/IDA ................................ 61,253 77,590 Of which: IBRD ..................... 45,453 57,490 IDA ................... 15,800 20,100 TheAdministrative Budgetsforthefiscalyear ending June 30,1971, were prepared by the Presidentand approved by the Executive Directors in accordance with the By-Laws of the Bank and IDA. For purposes of comparison the administrative expenses incurred during the fiscal year ended June 30, 1970, are also shown. The Association reimburses the Bank a single Management Fee for administrative expenses incurred on its behalf. The Management Fee, which comprises the Association's Budget for the year, has been established at $20.1 million for the fiscal year ending June 30, 1971. In FY1971 general assistance rendered by the Bank to IFC will be paid by a Service and Support Fee fixed for the fiscal year. The Fee has been established at $1.7 million for the fiscal year ending June 30, 1971. 114 Governors and Alternates Appendix 4 of the Bank and IDA June 30, 1970 Member Governor Alternate Atfghanistan ...... Mohammed Aman Algeria .... Cherif Belkacem . ............. Kamal Abdellah Khodja Argentina .... Carlos Moyano Llerena . . ..... .. Egidio lannella ,Australia . ... L. H. E. Bury .................. Sir Roland Wilson Austria .... Hannes Androsch . ............ Walter Neudorfer Belgium .... Baron Snoy et d'Oppuers . ......... Baron Ansiaux Bolivia .. .................... Oscar Vega L6pez .............. . Luis Ovando Candia Botswana.. .. Q. K. J. Masire . ............. H. C. L. Hermans Brazil . ... Antonio Delfim Netto . .......... Ernane Galveas Burma .... Kyaw Nyein ............... Chit Moung Burundi .... .......... Joseph Hicuburundi ............... Athanase Ntukamazina Cameroon .... Laurent Ntamag . .... F..... E. M. Koulla Canada ..... Edgar John Benson . ..... ..... Maurice F. Strong Central African Republic .......... Bernard-Christian Ayandho ........ Andre Zanife-Touambona Ceylon ........... ......... N. M. Perera . ............ Murugeysen Rajendra Chad. .................... Georges Diguimbaye . ......... Benoit Boukar Chile ............. ....... Carlos Massad Abud . .... ... Jorge Marshall Silva China ................... . .T Li . ...... ........ Chao-kuei Ma Colombia .............. ...... Abd6n Espinosa Valderrama ....... Jorge Mejia Palacio Congo, Democratic Republic of ..... L. Namwisi . .............. Cyrille Adoula Congo, People's Republic of ....... Banza Bernard Bouiti . ......... Jean-Edouard Sathoud Costa Rica ............ Omar Dengo 0. . ... . ........ Alvaro Vargas E. Cyprus ............ A. C. Patsalides . . .... A. C. Afxentiou(2' Dahomey ...... ...... Joseph Keke . .... Robert Tagnon Denmark ............ Otto MUller . .... Karl Otto Bredahl Dominican Republic ... .... Di6genes H. Fernandez . . ... Luis M. Guerrero G6mez Ecuador ............ Luis G6mez-lzquierdo . . Carlos Mantilla-Ortega El Salvador ............ Edgardo Suarez C . .... Armando Interiano Ethiopia..... .. .. .., Mammo Tadesse . ............ Wolde Mariam Girma Finland ...... Mauno Koivisto . . Jussi Linnamo France ...... Ministre des Finances . . Bernard Clappier Gabon . Edouard Alexis M'Bouy-Boutzit ..... Paul Moukambi Gambia, The..... . S. M. Dibba . .. ......... .... H. R. Monday, Jr. Germany . .... . Karl Schiller . . ..... Alex Moller Ghana..... . Joseph Henry Mensah . . ..... E. N. Omaboe Greece ..... Emmanuel Fthenakis ....... Achilles Cominos Guatemala ...... Emilio A. Peralta P. .I..... Jose Luis Bouscayrol Guinea ... .. Laminy Konde . ...... N'Faly Sangare Guyana ...... P. A. Reid ..H. 0. E. Barker Haiti ...... ............. Clovis Desinor . ... Antonio Andr6 Honduras.. ..... .....Manuel Acosta Bonilla . .......... Ricardo Zuhiga Augustinus Iceland .. ........... ......... Gylfi Gislason . ... ......... Magnus J6nsson India .... ............ . Y. B. Chavan(). 1. G. Patel 'Indonesia .... Ali Wardhana. Dioeana Koesoemohardia Iran .. . . ..... ............. Jamshid Amouzegar . ... ....... Jahangir Amuzegar Iraq ......... Amin Abdul Karim Kalamchi....Sa'adi Ibrahim ,Ireland ......... George Colley .......... ..... C. H. Murray Israel ......... David Horowitz ...... .. ...... Avraham Agmon Italy ... . ........ .......... Guido Carli. Paolo Baffi Ivory Coast .Konan Bedi .. Mohamed Diawara Jamaica" ........... .. Edward Seaga . .G. Arthur Brown Japan ............. Takeo Fukuda . .Tadashi Sasaki Jordan ............. Sami Judah Adel Shamayleh Kenya .... ......... Mwai Kibaki John Njoroge Michuki Korea ............. Duck Woo Nam .... Sung Whan Kim Kuwait . ..... ........... ... Abdul Rahman Salim Al-Ateeqi ..... Abdlatif Y. Ai-Hamad Laos Oudong Souvannavong . .......... Sitha Sisombat Lebanon .Khalil Salem . . ....... Farid Solh (continued) I" Member of the Bank only. 24 Appointment effective after June 30, 1970. 115 Governors and Alternates Appendix 4 of the Bank and IDA (continued) June 30, 1970 Member Governor Alternate Lesotho . ........... P. N Peete ........... E. Waddington Liberia ........... J. Milton Weeks ........... Cyril Bright V Libya .. . .. M. H. Arrabeie ......... K. M. Sherlala Luxembourg .......... . Pierre Werner ........... Albert Dondelinger Malagasy Republic .......... . Ralison Rakotovao . .......... Raymond Randriamandranto Malawi .......... .. Aleke K. Banda . .......... K. J. Barnes Malaysia . .......... Tan Siew Sin (2) ............... Mohamed Sharif bin Abdul Samad Mali ... . . ...... Tioule Konate . ...... .......... Sidy Coulibaly Mauritania .. . . . Mamadou Toure Mamadou Cissoko Mauritius .... . Veerasamy Ringadoo ... . .... ... Ramaswamy Pyndiah Mexico . . ,,Antonio Ortiz Mena .... . Jose Hernandez Delgado Morocco .. . .. Abdelkrim Lazraq . . .. - . . M'Hamed Bargach(2' Nepal . ...... . Bhekh Bahadur Thapa ... . ... Puskar Nath Pant Netherlands .................... .H. J. Witteveen . . . J. H. 0 graaf van den Bosch New Zealandcl' ..... H. G. Lang . .C. F. Sproule Nicaragua .... . Guillermo Sevilla-Sacasa . ... ... Juan Jose Martinez L. Niger .. .... . Alidou Barkire . ...... ..... .. Abdoulaye Diallo Nigeria .... ... .0. Awolowo . ..........-Abdul Aziz Atta Norway ... ... Otto Grieg Tidemand . . . Christian Brinch Pakistan ... Nawab Mozaffar Ali Khan Qizilbash . Ghulam Ishaq Khan Panama .................. ... Gabriel Castro S2'. . . Nicolas Ardito Barletta Paraguay ... . . C6sar Romeo Acosta . ...... .... Augusto Colman Peru . ........ . ..... ... Francisco Morales Bermudez C ... Luis Barua CastaReda Philippines ..... .Cesar Virata . . Roberto S. Benedicto Portugal"' ........... . .Joao Augusto Dias Rosas . ........ Luis M. Teixeira Pinto Rwanda ....................... Fidele Nzanana . . . Fidele Nkundabagenzi Saudi Arabia . . .... Ahmed Zaki Saad Senegal . .Adama Diallo.. Hamet Diop Sierra Leone. . M. S. Forna. . Elkanah Laurence Coker Singaporel' . .Goh Keng Swee .. Hon Sui Sen Somalia . ................ Ibrahim Megag Samater . ......... Omar Ahmed Omar South Africa . .. Nicolaas Diederichs . ........... Theunis Willem de Jongh Southern Yemen) . . Mahmoud Ushaish. . Ali Hamshari Spain . .Alberto Monreal Luque .. Mariano Navarro Rubio Sudan . .Abdel Karim Mirghani Gharieballa Mohamed Hamid Swaziland . . J. R. Masson .J.. . James Nxumalo Sweden . . .............. G. E. Strang . ..... ....... ..... Krister Wickman Syrian Arab Republic . ............ Nour Allah Nour Allah . . ... Ammar Jammal Tanzania . ............... P. Bomani . .Cleopa D. Msuya Thailand . ...... ........ Serm Vinicchayakul. . Bisudhi Nimmanahaeminda Togo .... ............... Jean Tevi . .Boukari Djobo Trinidad and Tobago' . . I . F. C. Prevatt . . . D. H. N. Alleyne Tunisia .... Chedly Ayari .................. .. Ali Zouaoui Turkey . ... Mesut Erez .................. Kemal Canturk Uganda . . .......... Laurence Kalule-Settala ........... E. B. Wakhweya United Arab Republic . .......... Hassan Abbas Zaki ............... Hamed Abdel Latif El Sayeh United Kingdom . . Sir Leslie O'Brien . ............ Sir Douglas Allen United States .... ..... David M. Kennedy. . Nathaniel Samuels Upper Volta . ......... .... Pierre Claver Damiba . . Pierre Tahita Uruguay"' .. ... Armando R. Malet Venezuela' . ............. Rafael Alfonzo Ravard . . C......... arlos Emmanuelli Llamozas Viet-Nam ..... ...... ..... Nguyen Van Dong Yemen Arab Republic ........ ..... Abdul Karim Al-Arashy121 ........ .. Mohamed Said Alattar12) Yugoslavia ............ . Janko Smole . . . Ksente Bogoev Zambia . . F... E H. K. Mudenda . . E. G. Kasonde Note: Cambodia became a member of the Bank and IDA, and Equatorial Guinea became a member of the Bank after June 30, 1970. Cambodia has appointed Hing Kunthel and Mau Say as Governor and Alternate Governor. Equatorial Guinea has appointed Andres Nko lvasa and Gabriel Andobe Buanga as Governor and Alternate Governor. 1) Member of the Bank only. (2) Appointment effective after June 30, 1970. 116 Executive Directors and Alternates of the Appendix 5 Bank and IDA and Their Voting Power June 30, 1970 Total Votes Executive Director Alternate Casting Votes of Bank IDA Appointed Robert E. Wieczorowski ........... Emmett J. Rice ......... . ..... .United States ........... .... ..... ......... 63,750 64,558 Derek J. Mitchell . .... ... .... M. P. J. Lynch .. .... .... .... United Kingdom ...... ............... ..... 26,250 26,728 Wilhelm Hanemann. Jorg Jaeckel ... ... ....Germany ... ............ . ......... 13,050 11,092 Georges Plescoff .. Jean P. Carriere .France ....................... . .......... 10,750 11,092 S. R. Sen . M. R. Shroff ............. India ........ ............. .... 8,250 8,570 Elected Seitaro Hattori ....... ...... . H. Jinadasa Samarakkody ..... Burma, Ceylon, Japan, Nepal, Singapore'), (Japan) (Ceylon) Thailand ......... ........... ..... ... 11,993 10,934 Giorgio Rota ....... ....... .... Juan Moro ........ . .. ..... Greece, Italy, Portugal('), Spain . .... ........ 11,794 7,654 (Italy) (Spain) Patrick M. Reid(2). A. Roy MacMillan .Canada, Guyana, Ireland, Jamaica(l' ... .... 10,333 9,834 (Canada) (Canada) J. 0. Stone ...... A. W. Young ....... .. . Australia, New Zealand('), South Africa .......... 9,880 7,054 (Australia) (New Zealand) S. Osman Ali ................. Abdol Ali Jahanshahi ... ...... Iran, Iraq, Jordan, Kuwait, Lebanon, Pakistan, (Pakistan) (Iran) Saudi Arabia, Syrian Arab Republic, United Arab Republic .. . .. .... . ..... .... 9,877 10,346 Reignson C. Chen* ............ C. L. Chow. ....... . China, Korea, Viet-Nam... ..... ... 9,210 8,106 (China) (China) Christopher Kahangi . .......... Donatien Bihute. . . Botswana, Burundi, Ethiopia, The Gambia, (Tanzania) (Burundi) Guinea, Kenya, Lesotho, Liberia, Malawi, Mali, Nigeria, Sierra Leone, Sudan, Tanzania, Trinidad and Tobago('), Uganda, Zambia ... 9,169 11,621 Pieter Lieftinck* ....... . .. ... Vladimir Ceri6 ..... ..... .... Cyprus, Israel, Netherlands, Yugoslavia ........ 8,739 8,844 (Netherlands) (Yugoslavia) Andr6 van Campenhout* ......... Friedrich T. Krieger .Austria, Belgium, Luxembourg, Turkey .8,717 5,893 (Belgium) (Austria) Abderrahman Tazi* ... Mohammed Younos Rafik ........ Afghanistan, Algeria, Ghana, Indonesia, Laos, (Morocco) (Afghanistan) Libya, Malaysia, Morocco .... . .. .... _ 8,627 9,212 Erik L. Karlsson ...... . Erik Hauge ..... ...... Denmark, Finland, Iceland, Norway, Sweden ..... 8,466 8,396 (Sweden) (Denmark) Luis Machado* ....... .. Arnoldo Ramirez-Eva...... . Costa Rica, El Salvador, Guatemala, Haiti, (Cuba) (Nicaragua) Honduras, Mexico, Nicaragua, Panama, Peru, Venezuela(')..... ...... ........... 7,803 7,058 Mohamed Nassim Kochman ...... Michel Bako ._ ....... ... Cameroon, Central African Republic, Chad, (Mauritania) (Chad) Congo (Democratic Republic of), Congo (People's Republic of), Dahomey, Gabon, Ivory Coast, Malagasy Republic, Mauritania, Mauritius, Niger, Rwanda, Senegal, Somalia, Togo, Upper Volta ...... 7,564 11,474 Virgilio Barco . .. .... Oscar Alviar-Ramirez ............ Brazil, Colombia, Dominican Republic, (Colombia) (Colombia) Ecuador, Philippines .7,393 8,190 Angel R. Caram ..... ...... Abelardo Brugada S .... Argentina, Bolivia, Chile, Paraguay, Uruguay"' 6,466 6,744 (Argentina) (Paraguay) In addition to the Executive Directors and Alternates shown in the foregoing list, the following also served as Executive Director after June 30, 1969: Executive Director End of Period of Service E. W. Maude ........... ...... ...... October 21, 1969 (United Kingdom) Covey T. Oliver. . ...... November 3, 1969 (United States) Ernst vom Hofe... ......... .. January 31, 1970 (Germany) S. Jagannathan . .... .... June 15, 1970 (India) Hideo Suzuki . . ..... ..... June 15, 1970 (Japan) (1) Member of the Bank only. (2) Succeeded by Claude Isbister (Canada) effective August 1, 1970 Member, Audit Committee. Note: Cambodia (453 votes in the Bank and 704 votes in IDA), Equatorial Guinea (314 votes in the Bank), Southern Yemen (485 votes in the Bank), Swaziland (314 votes in the Bank and 564 votes in IDA), Tunisia (623 votes in the Bank and 802 votes in IDA) and Yemen Arab Republic (335 votes in the Bank and 586 votes in IDA) not yet formally represented by an Executive Director. Cambodia became a member of the Bank and IDA and Equatorial Guinea a member of the Bank after June 30, 1970. Tunisia did not participate in the Regular Election of 1968. 117 Officers and Department Directors Appendix 6 of the Bank and IDA June 30, 1970 President .......... ............................. ... Robert S. McNamara Vice President and Chairman, Loan Committee . ............... J. Burke Knapp Vice President-Finance and Director, Projects ........... ...... S. Aldewereld General Counsel ................. A. Broches Director, Development Services Department . . Richard H. Demuth The Economic Adviser to the President . .. ............... Irving S. Friedman Vice President ..... ................... Sir Denis Rickett Vice President ........ .. .................... ................ Mohamed Shoaib Treasurer ............ ......... ................... .......... Eugene H. Rotberg Controller .. . ......... Francis R. Poore Secretary .................. ............ M. M. Mendels Director, Programming and Budgeting Department . .John H. Adler Director, South America Department . ................... Gerald Alter Director, Education Projects Department .. . . Duncan S. Ballantine Associate Director, Projects .. . . Warren C. Baum Director, Resident Staff in Indonesia ........... .................... Bernard R. Bell Director, Europe, Middle East and North Africa Department ............ Munir P. Benjenk Director, South Asia Department ................. I.... L P. M. Cargill Deputy Director, Projects ............ Bernard Chadenet Director, Western Africa Department .... .. ...... Roger Chaufournier Director, Information and Public Affairs . .................. William Clark Special Representative for United Nations Organizations . ....... ... Federico Consolo Deputy Chairman, Loan Committee . ................... S. R. Cope Director, Development Finance Companies Department . ............ William Diamond Special Adviser ........ ......... ..................... Abdel G. El Emary Director, Agriculture Projects Department L. J. C. Evans Director, Industrial Projects Department . .................. Hans Fuchs Director, East Asia and Pacific Department ... . R. J. Goodman Director, Central America and Caribbean Department ............... Edgar Gutierrez Associate Director, Development Services Department . . Michael L. Hoffman Director, Economics Department . .Andrew M. Kamarck Director, Population Projects Department . . K. Kanagaratnam Director, European Office .................. ...... Arthur Karasz Director, Transportation Projects Department A. David Knox Director, Tourism Projects Department . .Alfred Koch Director, Economic Development Institute .. . S. Krishnaswamy Director, Eastern Africa Department .......... ................... Michael L. Lejeune Associate General Counsel ....................... . Lester Nurick Director of Administration ........... ...... .... Hugh B. Ripman Director, Special Projects Department .Robert Sadove Director, Public Utilities Projects Department ........................ Mervyn Weiner 118 1 I WORLD BANK INTERNATIONAL DEVELOPMENT ASSOCIATION Headquarters / 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. Telephone: EXecutive 3-6360 European Office / 66 Ave. d'lena, Paris 16e, France. Telephone: 553-2510 Cable Addresses / World Bank: INTBAFRAD, International Development Association: INDEVAS