20084 I979 Annu' 200 leew World Bank 1979 Annual Report RET ?R M UnF'Y''5J2!SW 1P209CTS { 2- p s'. g;EiFe>aQ, U I rLAJI World Bank 1818 H Street, N.W. Washington, D.C. 20433 2 Cover: Bank assistance to Yugoslavia has supported development projects in many diflerent sectors and in each of the country's six republics and two autonomous provinces. The cover photo Frontispiece: Manufacturing handkerchiefs in shows the laying of a natural gas distribution Kenya. The World Bank is devoting increasing pipeline in Sarajevo (left and back cover), farming funds to providing job opportunities by helping in Montenegro (upper right), and the interior of finance small-scale and medium-sized industries an iron castings plant in Belgrade (lower right). throughout the developing world. 3 The World Bank The World Bank is a group of three of the World Bank, and 121 of them have joined institutions, the International Bank for to date. The funds used by IDA, called credits Reconstruction and Development (IBRD), to distinguish them from Bank loans, come the International Development Association mostly in the form of subscriptions, general (IDA), and the International Finance replenishments from its more industrialized and Corporation (IFC). developed members, special contributions by The common objective of these institutions its richer members, and transfers from the is to help raise standards of living in devel- net earnings of the World Bank. The terms of oping countries by channeling financial IDA credits, which are made to governments resources from developed countries to the only, are 10-year grace periods, 50-year developing world. maturities, and no interest, but an annual service The World Bank, established in 1945, is fee of 0.75 % is charged on the disbursed owned by the governments of 134 countries. portion of each credit. Although legally and The Bank, whose capital is subscribed by its financially distinct from the Bank, IDA is member countries, finances its lending administered by the same staff. operations primarily from its own borrowings The IFC was established in 1956. Its function in the world capital markets. A substantial is to assist the economic development of less contribution to the Bank's resources also comes developed countries by promoting growth in from its retained earnings and the flow of the private sector of their economies and helping repayments on its loans. Bank loans generally to mobilize domestic and foreign capital for have a grace period of five years and are this purpose. Membership in the Bank is a repayable over 20 years or less. They are prerequisite for membership in the IFC, which directed toward developing countries at more totals 109 countries. Legally and financially, the advanced stages of economic and social growth. IFC and the Bank are separate entities. The The interest rate the Bank charges on its loans Corporation has its own operating and legal is calculated in accordance with a formula staff, but draws upon the Bank for administrative related to its cost of borrowing. and other services. The Bank's charter spells out certain basic While the World Bank has traditionally rules that govern its operations. It must lend financed all kinds of capital infrastructure, only for productive purposes and must such as roads and railways, telecommunications, stimulate economic growth in the developing and ports and power facilities, its present countries where it lends. It must pay due regard developmental strategy places a greatly to the prospects of repayment. Each loan is increased emphasis on investments that can made to a government or must be guaranteed directly affect the well-being of the masses of by the government concerned. The use of loans poor people of developing countries by making cannot be restricted to purchases in any them more productive and by integrating them particular member country. And the Bank's as active partners in the development process. decisions to lend must be based only on This strategy is increasingly evident in the economic considerations. agriculture and rural development projects The International Development Association that the Bank and IDA help finance. It is also was established in 1960 to provide assistance evident in projects for education and family for the same purposes as the Bank, but primarily planning and nutrition, and in the Bank's in the poorer developing countries on terms that concern for the urban poor, who benefit from would bear less heavily on their balance of projects designed to develop water and sewerage payments than Bank loans. IDA's assistance facilities, as well as "icore" low-cost housing. and is, therefore, concentrated on the very poor to increase the productivity of small industries. countries-mainly those with an annual per At the same time, lending for traditional capita gross national product of less than projects continues, and is being redirected, $581 (in 1977 dollars). More than 50 countries to be more responsive to the new strategy of are eligible under this criterion. deliberately focusing on the poorest segments Membership in IDA is open to all members of society in the developing countries. 4 Table of Contents The World Bank 3 The Executive Directors and Alternates 7 The Record for Ten Years-1970-79 8 Summary and Background of the Year's Activities The Year in Brief 9 General Capital Increase 10 Economic Developments: Fiscal 1979 11 Developments in International Trade 12 External Debt 14 Capital Flows from DAC and OPEC Countries 18 Energy and Nonfuel Minerals Development 18 Lessons of Urban Development 22 Environmental Affairs 27 Distributing Exchange Rate Risks 28 The Year's Activities, by Region Eastern Africa 31 Western Africa 38 East Asia and Pacific 44 South Asia 51 Europe, Middle East, and North Africa 59 Latin America and the Caribbean 66 Projects Approved for Bank and IDA Assistance in Fiscal 1979, by Sector 73 Projects Approved for Bank and IDA Assistance in Fiscal 1979, by Region 95 Projects Approved for Bank and IDA Assistance in Fiscal 1979, by Purpose 97 External Coordination and Cooperation Economic Development Institute 102 Coordination of Assistance 103 Interagency Cooperation 104 Technical Assistance 107 International Agricultural Research 107 Economic Research and Studies 109 Internal Activities Operations Evaluation 110 Internal Auditing 111 Membership, Bank and IDA 111 International Centre for Settlement of Investment Disputes 111 Staff Developments 112 Contents 5 Executive Directors Executive Directors 114 Joint Audit Committee 115 Borrowings and Finance Income, Expenditures, and Reserves: Bank 116 Other Financial Operations: Bank 117 The Bank's Borrowings-Fiscal 1979 117 Borrowing Costs: Bank 118 Capitalization 119 Finances: IDA 119 Foreign and International Bond Markets-Calendar 1978 120 Syndicated Eurocurrency Credits-Calendar 1978 124 Bond Markets-1979 125 Syndicated Eurocurrency Credits-1979 126 Statistical Annex Index 127 General Notes to Annex Tables 128 Tables 1-11 130 Bank Appendices Index 151 Financial Statements 152 IDA Appendices Index 167 Financial Statements 168 Bank/IDA Appendices Index 181 Appendix 1: Bank and IDA Cumulative Lending Operations, by Major Purpose and Region, June 30, 1979 182 Appendix 2: Bank and IDA Cumulative Lending Operations, by Country, June 30, 1979 184 Appendix3:Statementof LoansApproved duringFiscal Year1979 186 Appendix 4: Statement of Development Credits Approved during Fiscal Year 1979 191 Appendix 5: A dministrative Budgets of the Bank and IDA 195 Appendix 6: Governors and Alternates of the Bank and IDA 196 Appendix 7: Executive Directors and Alternates of the Bank and IDA 198 Appendix 8: Officers and Department Directors of the Bank and IDA 199 Appendix 9: World Bank Offices 200 \ ~~ I $Y \ NSt,I ) d ,<00"'.,l,l!0jIt' ~VL _ _ _ _ '7 I // 7 The Executive Directors and Alternates Executive Directors Alternates Zain Azraai Aung Pe Moncef Belkhodja Omar Kabbaj Jacques de Groote Herbert Sutter Earl G. Drake Edward M. Agostini Said E. El-Naggar Saleh A. Al-Hegelan Edward R. Fried William P. Dixon R. A. Johnston Sang-Chul Suh Eberhard Kurth Hans-Dieter Hanfland Anthony IJ. A. Looijen Miodrag M. Stojiljkovi6 Hans Lundstrom Valgeir Arsaelsson Austin H. Madinga Y. S. M. Abdulai Placido L. Mapa, Jr. Guillermo Constain Eduardo Mayobre Oscar G. Espinosa Paul Mentre de Loye Pierre-Henri Cassou Susumu Murayama Kimiaki Nakajima M. Narasimham M. Syeduz-Zaman Armand Razafindrabe Nicephore Soglo Giorgio Rota Antonio S. Labisa William S. Ryrie Ronald F. R. Deare Alberto Sola David Blanco The Executive Directors of the International Bank for Reconstruction and Development and the International Development Association have had prepared this Annual Report for the fiscal year July 1. 1978 to June 30, 1979 in accordance with the By-Laws of the two organizations. Robert S. McNamara, President of the Bank and the Association and Chairman of the Boards of Executive Directors, has submitted this Report, together with accompanying administrative budgets and audited financial statements, to the Boards of Governors. The Annual Reports of the International Finance Corporation and the International Centre for Settlement of Investment Disputes are published separately. June 30, 1979 8 The Record for Ten Years-1970-79 Fiscal year 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 World Bank US$ millions Loan amounts (1) 1,580 1,921 1,966 2,051 3,218 4,320 4,977 5,759 6,098 6,989 Disbursements(2) 754 915 1,182 1,180 1,533 1,995 2,470 2,636 2,787 3,602 Total income 504 578 646 758 929 1,157 1,330 1,617 1,947 2,425 Net income 213 212 183 186 216 275 220 209 238 407 Total reserves 1,329 1,444 1,597 1,750 1,772 1,902 1,916 2,026 2,245 2,498 Borrowings: total 735 1,368 1,744 1,723 1,853 3,510 3,811 4,721 3,636 5,085 Borrowings: net 299 819 1,136 955 990 2,483 2,530 3,258 2,171 3,235 Subscribed capital 23,159 23,871 26,607 30,397 30,431 30,821 30,861 30,869 33,045 37,429 number Operations approved 69 78 72 73 105 122 141 161 137 142 Countries 39 42 40 42 49 51 51 54 46 44 Member countries 113 116 117 122 124 125 127 129 132 134 Professional staff (number) 1,170 1.348 1,516 1,654 1,752 1,883 2,066 2,203 2,290 2,382 IDA US$ millions Credit amounts 606 584 1,000 1,357 1,095 1,576 1,655 1,308 2,313 3,022 Disbursements 143 235 261 493 711 1,026 1,252 1,298 1,062 1,222 Usable resources, cumulative 3,182 3,343 4,204 7,019 7,433 11,608 11,514 11,789 18,062 19,661 number Operations approved(') 50 51 68 75 69 68 73 67 99 105 Countries 33 34 38 43 41 39 39 36 42 43 Member countries 105 107 108 112 113 114 116 117 120 121 (0 Excludes loans to IFC of $100 million in fiscal year (FY)1970, $60 million in FY1972, $40 million in FY1973, $110 million in FY1974, $50 million in FY1975, $70 million in FY1976, and $20 million in FY1977. Includes amounts in FY1976 and FY1977 lent on Third Window terms. (2) Excludes disbursements on loans to I FC. (3) Joint Bank/lDA operations are counted only once as Bank operations. 9 Summary and Background of the Year's Activities The Year in Brief of the Association's lending was to countries with per capita GNPs of $296 or less. This In fiscal 1979. the World Bank, together with distribution of IDA credits was virtually iden- its affiliates, the International Development As- tical to that in fiscal 1978. sociation (IDA) and the International Finance Twenty-seven percent of the Bank's lending Corporation (IFC), made lending and invest- was to countries in which annual per capita ment commitments aggregating $10,435.9 mil- incomes are $580 or less. This, too, differed lion.(') The total was $1,686.8 million higher only slightly from the distribution of fiscal than in fiscal year 1978.'2) 1978 commitments. The World Bank committed a total of Lending in the agriculture and rural devel- $6,989.0 million; 142 Bank loans to 44 devel- opment sector dipped from 39% of the total oping countries were approved during the year. (fiscal 1978) to 25%; lending in support of In fiscal 1978, the Bank's commitments transportation rose from 13% in fiscal 1978 to amounted to $6,097.7 million. 19%; and commitments in support of water IDA commitments during the past year supply projects more than doubled those of the were $3,021.5 million. A total of 105 credits year before-from 4% of the total to 10%. to 43 developing countries were approved. In Fiscal 1979 figures on the distribution of Bank fiscal 1978, IDA commitments totaled $2,313.0 and IDA commitments reflect only a one-year million. step in the evolution of the Bank's lending to Total Bank and IDA lending in support of its borrowing member countries, rather than a those projects whose total costs can be esti- change in the institution's lending program. mated amounted to about 34% of total project For a better appreciation of recent trends-as costs. opposed to a one-year project "mix"-in lend- The IFC made 48 investments amounting ing by sector, readers are advised to consult the to $425.4 million. Those investments were for table on page 30 of this Anniual Report. The projects in 33 developing countries. The Cor- drop in agriculture and rural development, for poration made 41 investments worth $338.4 instance, reflects a drop in lending only, and million in fiscal 1978. not a significant decrease in the number of Other highlights included: projects approved in the sector (84 in fiscal -Disbursements by the Bank and IDA of 1979, as against 88 in thc previous year). In $4,824 million ($3,602 million by the Bank and fiscal 1978, there were eight projects in the $1,222 million by IDA). The disbursement sector for which either the Bank or IDA made total was some $975 million higher than in commitments of $100 million or more; in fiscal fiscal 1978; 1979, there were but three. -A net transfer of resources (disbursements The IFC-the World Bank affiliate respon- minus repayments of principal, interest, and sible for assisting the economic development other charges) by the Bank and IDA of $2,157 of its developing member countries by promot- million, up $559 million over fiscal 1978; ing the growth of their private sectors and -Co-financing of Bank-supported and IDA- by providing and bringing together financing, supported projects amounting to $3,248 mil- lion, up $469 million from fiscal 1978; -An increase in Bank net income, up $169 million from fiscal 1978 totals, to $407 mil- 0)The fiscal year of the World Bank, as well as of its two lion; and affiliates, runs front July t to Junec 30. -(-'Since the real value of loan comritments by the Bank -Bank borrowings of $5,085 million, of and IDA is eroded to the extent that cost inifla'tion occurs which $796 million was as an advance for the over the period of disbursements, it is the practice of the Bank to make allowance for inflation at the tirne of corn- planned borrowinig program for fiscal 1980. mitment. The deflator now used to express lending in All IDA commitments were to countries that real terms is a weighted average of the price lcvels as- All IDAcommitents wre to ountris that sumed to he prevailing over the period of the execution have annual per capita gross national products of a project. If fiscal 1979 Bank and IDA commitments were to he expressed in terms of 1978 dollars, thev would (GNP) of $580 or less (in 1977 dollars): 79% he $9,440 million, or 12.2'4 higher in real terms. 10 Summary and Background 8% in mining and energy development. The balance was investments in financial institu- tions and services. The IFC's capital increase, approved by its Board of Governors in November 1977, is currently being subscribed to by member coun- Dollar amounts used in the text tries. Of the $480 million allocated for sub- of the Annual Report refer to cur- scription, $306 million had been subscribed to rent United States dollars. Where by the end of the fiscal year. special drawing rights (SDR) During fiscal 1979, Botswana joined the amounts are used for the capital of Corporation, raising its membership to 109. the Bank, one SDR equals 1.29110 current United States dollars at June 30, 1979 (one SDR equaled General Capital Increase 1.23953 current United States dol- Late in fiscal 1979, the Executive Directors lars at June 30, 1978). of the Bank agreed to recommend to the insti- For a detailed discussion and the tution's Board of Governors that the Bank's basis for SDR amounts used for authorized capital stock be increased by an IDA subscriptions and contribu- amount equivalent to $40,000 million. tions, see Notes to Financial State- The increase-roughly a doubling of the ments, Appendix F. Bank's current authorized capital stock-will enable Bank lending to continue to grow, in real terms, through the middle of the next decade. The proposed increase will also approxi- mately double the number of shares outstand- ing. It will not, however, result in a proportion- ate increase in the number of votes held by technical assistance, and management needed member countries, because membership votes to develop productive investment opportunities are fixed by the Articles of Agreement at 250 -publishes its own Annual Report. In brief, votes per country. Because membership votes the IFC's fiscal year was highlighted by several cannot be increased without an amendment of developments. the Articles, a simple proportionate increase Fiscal 1979 was the Corporation's first year in each member's subscription would result in of operations following the approval of a five- an unintended and unfortunate reduction in the year program to expand and reorient signifi- voting power of the smaller member countries cantly IFC's activities. who benefit most from the existence of mem- With the additional resources provided it by bership votes. Since the overwhelming majority its recent capital increase, the Corporation con- of small countries are developing countries, this tinued to expand its investment activities, mak- would have the effect of reducing the aggre- ing 48 investments amounting to S425 million gate voting power of the developing countries. in 33 countries. This was a 26% increase in To overcome this unintended effect of the dollar volume and a 17% increase in the num- General Capital Increase, the Directors rec- ber of projects over the previous year. ommended that a special allocation of 250 With its increased activity and promotional shares be made to each member country. These efforts, the Corporation has been able to ex- 250 shares would be separated from the Gen- pand its investment program in its least de- eral Capital Increase in two ways: first, no part veloped member countries. About half of its of the subscription price would be paid in. The projects were in countries with an annual per purpose of this provision is to avoid imposing capita income of $580 or less. a financial burden on those member countries The total cost of the ventures in which the who are intended to benefit most from the extra Corporation participated is estimated to be 250 shares. These countries need the member- $1.714 million. ship votes precisely because their small size and In addition to its own funds, the Corporation relatively poor economies prevent them from was able to mobilize $198.6 million through taking up large subscriptions in the Bank. Sec- syndications of its loans with other financial ond, in view of the purpose of authorizing these institutions, particularly commercial banks. shares, the Directors agreed they should not be About 54% of its investments were in manu- counted as part of the capital base of the Bank facturing ventures, 19% in agrobusinesses, and for purposes of determining lending authority. Ec ononiic Dev'elopments: Fiscal 1979 11 This will enable the 250 shares to be outside the on the balance of payments of the petroleum- $40,000 million equivalent limit to the General importing developing countries has been high Capital Increase and yet not create additional in current prices, rising from $21.000 million lending capacity. in 1977 to about $32,000 million in 1978; a The Executive Directors also recommended further substantial worsening, on the order of that 7.5% of the $40,000 million equivalent $10,000 million, is expected to materialize increase in authorized capital stock be paid in. through 1979. In real terms, however, the size The remaining 92.5% would represent, there- of the petroleum-importing developing coun- fore, capital that is subject to call only if re- tries' deficit has shrunk markedly, declining quired by the Bank to meet its obligations on from about $43,000 million in 1973 (as meas- borrowings. ured in 1978 prices). The agreement on the size of the increase in The aggregate rate of growth in 1978 for all the Bank's authorized capital was reached two developing countries, at 5.2% (4.9% exclud- years after the subject was initially brought up ing capital surplus oil-exporting countries). ex- for discussion within the Bank. Before discus- ceeded that of the industrialized countries as it sion began, however, support for an increase in has for every year in this decade. In the nine- capital sufficient to permit the Bank to increase year period, 1966-74, that preceded the turbu- its future lending in real terms was forthcom- lence of the mid-70s, this rate was much higher ing from both developing and developed coun- -6.2% . Since 1974, aggregate rates of growth tries. At the Annual Meetings of the Bank and for developing countries have followed no con- the International Monetary Fund, held in Wash- sistent pattern. From a low of 4.9% in 1975, ington in October 1978. there was unanimous they recovered to 5.7% in 1976. In 1977. support among the Governors present for growth declined to 5.5%. Figures for 1978, proceeding promptly to bring the negotiations even though higher than for the industrialized to an early conclusion. Against this backdrop. world, provide no causc for rejoicing; they the pace of the discussions quickened during reflect more the slow growth in the industrial- the year. leading to the consensus reached in ized world than developing world advances. the Board in June of 1979. Nor do the figures for the entire decade pro- vide any hope that the so-called "gap" between Economic Developments: Fiscal 1979 the developing and industrialized worlds might be narrowing; even if the developing countries In fiscal 1979, the World Bank continued to were to manage to double their per capita monitor world economic trends for their im- growth rate, while the industrialized world but pact on developing countries. Analysis suggests maintained its, it would take almost a century that although the world economy had begun to to close the absolute income gap between them, settle down after the shocks of the mid-1970s. so great are the differences in the capital and the economic atmosphere remains uncertain. technological base of the two groups. Preliminary figures for calendar 1978 indicate As in the recent past, figures of aggregate that growth in industrialized countries con- growth mask wide differences among regions. tinued to be less than 49c for the second year Growth rates continued to be smallest for sub- running.'") Even this growth rate was threat- Saharan Africa (2.9%). Nor did the more ad- ened early in 1979 by an expected slowdown vanced developing countries of the Mediter- of the US economy, but because investment ranean, with growth averaging 3.3%, fare well levels in the other industrialized countries had in 1978. However, the countries of South Asia been low since 1975, the time seemed ripe for maintained a growth rate well above 5% for a modest expansion, providing inflation could the second year running, and Latin America be kept at bay. By mid-1979, however, petro- and the Caribbean recovered somewhat to leum uncertainties began to cloud the future. 4.7%. The East Asian countries developed Until the oil price increases of 1979, global rapidly. with growth rates rising to almost 9% patterns of current account balances began to in 1978. These trends are discussed in more look much as they did before 1973. The in- detail in the various regional chapters of this dustrialized countries had begun to return to a Annual Report. surplus position, the petroleum-exporting de- veloping countries were spending most of their oil revenues on development programs, and the other developing countries (together with the centrally planned economies and the more de- veloped primary producing countries) re- ("1 See Statistical Annex. Table 1, page 130 for growth and mained in deficit. The current account deficit other economic indicators by region. 12 Summary and Background Levels of development already achieved, as staff estimates that this effect contributed to well as domestic policies pursued, were clearly roughly one-half of the increase in dollar unit instrumental in the developing countries' value of world trade; effective price trends growth. For the least developed countries, (both for primary and manufactured commodi- highly dependent as they are on one or two ties) were thus far weaker in 1978 than in 1977. primary products, trends in prices and volume World export prices of primary products of trade were determinants of export growth, (including petroleum) rose by roughly 3% and played an important role in overall eco- worldwide, compared with the 10% rise in nomic performance. For countries with more 1977 that mainly reflected the boom in tropical advanced and diversified economies, sound beverage prices. When the decline in beverage domestic policies and economic management prices from mid-1978 is discounted, primary led to high domestic investment, and generally, product prices (particularly minerals) grew to a healthy cxport performance. This latter quite strongly in terms of US dollars. World group of countries was able to build up reserves export prices of manufactures are estimated to and borrow from private financial markets, have increased by 14% in 1978, compared thus adding to the external resources made with 9% in 1977. available by high trade growth. If major eco- The barter terms of trade for those develop- nomic and political upheavals can be avoided ing countries that are still net importers of in the future, such conditions might be able manufactures and net exporters of primary to be created among a wider grouping of commodities deteriorated in 1978, but the ef- developing countries. fects were diverse within this group. Countries Final figures for 1978, together with pre- exporting tropical beverage products, particu- liminary indications observed through mid- larly coffee, were the hardest hit, although it 1979, do not alter the conclusions reached in should be noted that their prices remained the World Bank's World Development Report above 1976 levels in real terms. Countries ex- for 1978: that porting some food products (oil and oilseeds, -progress made by developing countries beef, wheat, maize), agricultural raw materials has not been sufficient to reduce the numbers (including cotton, rubber, and timber), and of people living in poverty; that metals (particularly copper, lead, zinc, and the -the economic difficulties of the industrial- minor metals) have benefited from an upturn ized countries, the instability of exchange rates, in prices that began in 1978 and continued and the prevailing atmosphere of uncertainty strongly into 1979. about the growth of international trade and The experience of countries exporting manu- the future movements of capital suggest that factures has also been diverse, reflecting the it will be more difficult for the developing product composition of their imports and ex- countries to expand their economies in the ports. In general, they probably benefited from coming decade than it has been in the past 25 improved terms of trade during 1978; more years; and that recently, however, their terms of trade have -even to maintain their present rate of begun to decline. progress, developing countries will need larger Against most expectations, developing coun- inflows of foreign capital, while undertaking tries' export earnings increased in the 1950s vigorous efforts to withstand protectionist pres- and 1960s, with the rise in the exports of man- sures and to stimulate the productivity of their ufactures being particularly marked. Export agriculture sector. earnings fell in 1975, but again, against most expectations, they recovered sharply beginning in 1976. Total export earnings continued grow- Developments in International Trade ing in the period, 1977-79, reaching about $310,000 million in 1977 and about $320,000 According to the General Agreement on million in 1978. Fuels accounted for about Tariffs and Trade (GATT) staff estimates, the 30% of developing country export earnings, volume of international trade increased by other primary products 25%, and manufac- about 5% in 1978, up slightly from the 4% tures 20%. Nonfactor services (i.e., tourism, average annual rate for the period, 1973-77. contractual services, shipping, and insurance) The unit value of world trade, as measured in accounted for more than 20% of total export US dollars. was estimated to have risen by 9% earnings. In addition, workers' remittances for the second straight year in 1978. (from Europe, North America, and the Middle A substantial part of 1978 increases in ex- East) contributed roughly $10,000 million to port prices reflects. however, the strong effec- the developing countries' balance of payments tive depreciation of the US dollar. The GATT in 1977 and 1978. Developments in International Trade 13 The export growth of developing countries with respect to codes covering customs valua- was facilitated by the industrialized countries' tion, government procurement practices, ex- trade liberalization policies. By the completion, port subsidies, countervailing duties, and prod- in the early 1 970s, of the tariff reductions man- uct standards. In addition, the agreement dated by the Kennedy Round of multilateral broadens the code regulating safeguard actions trade negotiations, the trade regimes of the in- to attempt to bring them within the ambit of dustrialized countries had become less restric- GAT. This issue has been left somewhat open, tive than at any time since before 1914. Some and it has been pointed out that without an restrictions survived, however, both in the form active interest by developing and industrialized of relatively high tariffs and as nontariff bar- countries, the codes could provide legal cover riers against the import of agricultural prod- for restrictive action. But, as the President of ucts, some primary processed products, textiles, the World Bank pointed out in Manila, in May clothing, and footwear. On the other hand, 1979, the most important point about the trade many developing countries, particularly the agreements could well lie in the environment least developed, were given privileged access and the spirit in which those agreements are to industrialized country markets under the implemented. If implemented in a positive way, General Preference Scheme. the agreements could be an important step With the onset of the recession in 1975, how- against the rise of protectionism, and the code ever, protectionism, in several nontariff guises revisions could well help stimulate developing has been on the increase. These measures have country exports. taken the form of "voluntary"export restraints, The developing countries own restrictions countervailing duties, subsidies and other as- on trade, in the form of exchange controls and sistance to domestic industries to sustain pro- tariff and nontariff barriers, are considerably duction above levels of demand, and govern- tighter than those of the industrialized coun- ment procurement procedures that favor tries. It was for this reason that the expansion domestic sources of supply. So far, these re- of developing country exports, particularly of strictions have been limited. Industrialized manufactures, was directed to industrialized countries have made a serious effort to hold countries in the 1960s and early 1970s. The the line against protectionist attacks on devel- rate of growth of trade among developing oping country exports. Most of the restrictions countries began to rise only after 1973. when that have been raised against the exports of the markets of the petroleum-exporting coun- developing countries-textiles, clothing, foot- tries opened up. This trade still makes up only wear, and electronic products-have been about 20% of total developing country ex- mainly directed against strong East Asian ex- ports, with petroleum exports accouLnting for a ports, whose total exports, nonetheless, have major share. About 30% of developing coun- continued to increase. But these limited restric- try exports of manufactures and services are to tionstved had the effect of hurting small, new other developing countries, with the oil-export- tions have inscourag pl,nnew ing countries providing major markets. As the exporters and have discouraged planning for centrally planned economies take only about exports in the future. It continued and ex- 6% of these exports, the largest markets re- tended, they would lead to serious obstacles to main in industrialized countries. The develop- developing countries' efforts at achieving eco- ing countries, because of their relatively strong nomic growth through export increases, economic performance in the 1970s, have bc- The recent conclusion. after five years of come more important markets for the indus- negotiation, of the Tokyo Round of multi- trialized countries, accounting for more than lateral trade negotiations under GATT aus- 25% of their total exports. pices could-despite its imperfections-have At the beginning of the industrialization the effect of reducing, further, barriers against process, the arguments for the protection of developing country exports. The agreement is infant industries were strong. Recent actions expected to result in average tariff cuts of 35% on the part of developing countries suggest to 38% over an eight-year period, although that the protectionism of the past is easing. tariffs on imports from developing countries Countries with relatively advanced industry are expected to decline by onlv 25%, or some sectors are weighing the costs of such protec- 10 to 13 points less than the average tariff re- tion against the benefits of a more liberal ap- duction. But the most encouraging results of proach. Many have more confidence in their the Tokyo Round are to be found in the area competitiveness, and they recognize that if of nontariff barriers to trade. This achievement they wish to export more to industrialized has been accomplished by a strengthening of countries and to benefit from an increased in- GATT codes, including important changes ternational specialization of production, the 14 Summary and Background industrialized countries must also be able to This total was $37,515 million-or 23%- increase their exports. over 1976, compared with an increase of Trade liberalization in developing countries $30,640 million-or 22%-in 1976 over 1975. is, therefore, progressing. Recent actions by The total, including undisbursed balances, in- several developing country governments are creased in 1977 by $50,250 million to $285,187 indicative of this trend. Measures have in- million, an increase of some 21 % over 1976. cluded: (a) the Indian government's continua- These undisbursed balances, representing firm tion of a liberalized import policy for capital agreements to lend not yet made effective by goods, and the reduction of import duties on a disbursements, stood at $84,104 million, or number of consumer items; (b) a decision by about 30% of total debt outstanding, about Brazil to reduce the 100% ad valorem deposits the same percentage as at the end of 1976. As on imports and the 100% tax rebates on ex- in 1976, these balances provided for the con- ports by 5% each quarter until they are phased tinuity of financing for projects under con- out altogether; (c) the customs tariff reductions struction, as well as for some borrowing in by Argentina that are also intended to stabilize anticipation of needs. internal prices; (d) an easing of regulations for On.the basis of reports to the Bank and of foreign banks by the Republic of China; and estimates, total private debt for 42 countries (e) a three-year import liberalization program amounted to about $48,500 million at the end in the Republic of Korea, designed to bring of 1977, an increase of about 15% over the 90% of import items under automatic approval. end of 1976, compared with the 21% increase If general economic conditions do not de- in public debt for these same countries. These teriorate so that the industrialized countries can 42 countries are believed to have owed about not only continue to hold the line against pro- 90% of total private long-term debt outstand- tectionist pressures, but also liberalize trade ing at the end of 1977. Private debt is owed further in the wake of the Tokyo Round, and very largely by the more advanced countries if the developing countries continue to move in the Mediterranean region and by developing along the path toward trade liberalization, the countries in Latin America and the Caribbean outlook for increased trade would be promising. and in East Asia and Pacific. Amounts owed by countries in the other regions are relatively External Debt small. Net public borrowing in 1977 was $32,965 The external public debt of 96 developing million, higher by $3,322 million than in 1976; countries'(O increased by an estimated $51,000 this was an increase of 11 % compared with million, or about 25% in 1978, to a total of 15% in 1976. Net private borrowing was ap- $253,000 million. Private debt is estimated to proximately $6,000 million in 1977, about the have increased by no more than about $7,000 same as in 1976. million. In the 87 nonoil-producing countries, Net public borrowing by the oil-exporting increased borrowing in 1978 was accompanied developing countries(6) expanded in 1977 quite by a small increase in their current account sharply compared with 1976 ($7,650 million as deficit(5) and a large increase in international against $4,690 million). A large part of the reserves-about $17,000 million. The nine oil- total increase was accounted for by the resump- exporting developing countries increased their tion of, or increase in, net borrowing, both in borrowing as their current account position 1976 and 1 977, by a number of these countries changed from a small surplus to a deficit; they which, in 1974 and 1975, had made net repay- also drew on their foreign exchange reserves. ments of external public debt. Overall, the nine Borrowing from multilateral institutions and oil-exporting countries had a current account from international capital markets both in- surplus of only about $900 million in 1977, or creased appreciably. Funds were readily avail- $4,000 million less than in 1976; all but Iran, able in these markets, although interest rates Iraq, Gabon, and Trinidad and Tobago were rose during the year (see the chapter, "Borrow- in current account deficit. ings and Finance,' pages 116 to 126 in this The balance of payments deficit on current Annu(al Report). account of the 87 developing countries that are Full details are now available for all of the public debt and considerable detail for private debt owed by these same countries in 1977. (0) For a list of the 96 countries and a full definition of pub- External public debt of 96 developing countries tic and private debt, as well as the other terns used, see the General Notes to Annex Tabecs, page 128. during 1977 rose at about the same rate as in (n) The current account balance is defined as the balance 1976. At the end of 1 977, the total debt out- of goods, services, and private transfers. standing atthend ofisbursed the totas debt1,083 (0 mAlogeria, Ecuador, Gabon, Inidonesia. Iran, Iraq, Nigeria, standing and disbursed was $201,083 million. Trinidad and Tobago, and Venezuela. External Debt 15 External Public Debt Outstanding, Disbursed, of 87 Nonoil-exporting Developing Countries, by Region, 1974-1977 (uS$ millions.) Years Region 1974 1975 1976 1977 Africa South of the Sahara 9,877 11,965 14,461 17,411 East Asia and Pacific 8,673 11,268 14,502 18,588 Latin America and the Caribbean 32,917 41,018 52,211 62,558 North Africa and Middle East 6,310 9,256 11,649 16,946 South Asia 18,779 20,675 23,190 26,010 More advanced Mediterranean countries 15,804 18,231 21,497 25,022 Total-87 nonoil-exporting countries 92,358 112,412 137,509 166,535 External Public Debt of 96 Developing Countries (US$ millions.) Debt outstanding (including (disbursed Commit- Net disburse- Developing countries undisbursed) only) ments ments 87 Nonoil-exporting countries 1974 133,207 92,358 35,336 16,110 1975 157,678 112,412 36,307 22,454 1976 193,825 137,509 45,723 24,953 1977 233,517 166,535 48,289 25,315 9 Oil-exporting countries 1974 26,834 17,792 4,905 721 1975 32,702 20,515 9,009 3,251 1976 41,113 26,058 10,301 4,690 1977 51,670 34,548 12,139 7,650 96 Developing countries-Total 1974 160,040 110,150 40,241 16,831 1975 190,380 132,928 45,316 25,705 1976 234,937 163,567 56,024 29,643 1977 285,187 201,083 60,427 32,965 Creditor Composition of External Debt of 87 Nonoil-exporting Developing Countries, by Amount and Percentage 1976 1977 US$ millions % us$ millions X Debt Outstanding (disbursed only) Governments 55,338 40.2 63,197 37.9 International organizations 21,583 15.7 27,047 16.2 Financial markets 48,988 35.6 62,670 37.6 Suppliers and other private 11,599 8.4 13,622 8.2 Total 137,509 100.0 166,535 100.0 Commitments Governments 14,747 32.3 11,230 23.3 International organizations 7,896 17.3 11,255 23.3 Financial markets 19,541 42.7 20,719 42.9 Suppliers and other private 3,539 7.7 5,085 10.5 Total 45,723 100.0 48,289 100.0 Net Disbursements Governments 6,839 27.4 5,761 22.8 International organizations 3,652 14.6 5,229 20.7 Financial markets 13,385 53.6 12,796 50.5 Suppliers and other private 1,078 4.3 1,529 6.0 Total 24,953 100.0 25,315 100.0 Note: Details may not add to totals because of rounding. 16 Summary and Background not major oil exporters (the 96 countries listed Like the countries in the Mediterranean in the General Notes to Annex Tables exclud- region, the developing countries in the Middle ing those countries listed in footnote 6) nar- East and North Africa<10-other than major rowed in 1977 to about $30,300 million, down oil-exporting countries-experienced a widen- from about $33,700 million in 1976 and ing (albeit a small one) current account deficit $45,900 million in 1975. As indicated in the in 1977 to $5,400 million, up from $5,000 mil- Bank's Annual Report for fiscal 1978, this de- lion in 1976. Net public borrowing increased velopment reflected the adjustments made, in sharply, from $2,546 million to $4,948 million. many of these countries, to the difficulties of The increase was largely on account of in- 1974 and 1975. Net borrowing increased by creased borrowing by Egypt and Morocco. only about $400 million in 1977 to $25,300 Borrowing was approximately equal to the million. This was a far smaller increase than current account deficit for the region as a in the previous years; in conjunction with the whole. At the end of 1977, the external public reduction in the current account deficit of debt of the countries of the region was $16,946 about $3,400 million, their borrowing facili- million, up more than 45% from 1976. Most tated an addition to official reserves of about of this debt and borrowing was from official $10,300 million (following an increase of about sources; 74% of the debt outstanding at the $6,700 million in 1976). end of 1977 and 69% of net borrowing during Because these 87 countries are so diverse, that year were from such sources. general statements about their combined ex- With few exceptions, the countries of Africa ternal borrowing and balance of payments South of the Sahara(9) have very low per capita positernare brofn l d balane. oIn particular incomes and have borrowed relatively little position are of limited value, nprtclr from private lenders. In 1977. the comnbined statistics on external public debt measure a from ateolenders. of the combied much smaller element of the extemal finance curien accou it oflthese contries re- of the larger and more complex economies mlained at about $4,100 million, almost un- than of the poorer countries, which continue changed from 1976. Net public borrowing was to rely mostly on official assistance. Other $2,722 million, very slightly more ($147 mil- forms of external finance including private lion) than in 1976. Of this borrowing, almost direct investment, borrowing by the private two-thirds was from official sources. The total sector without public guarantee in the borrow- public debt outstanding at the end of 1977 of ing country, and short-term transactions are sub-Saharan countries was $17,411 million, of important in countries with a relatively high which just less than two-thirds was owed to per capita income. Generalizations about re- official creditors. Most of this debt was on gional groupings are somewhat more useful, highly concessional terms. Several countries, though they are still subject to limitations. nevertheless, have servicing difficulties Public debt outstanding to private creditors at the end The more advanced developing countries of of 1977 was only $5,984 million, an increase the Mediterranean(7) rely least on external of 24% over 1976. Of this amount, 90% was public borrowing as a source of external fi- owed by four countries-Ivory Coast, Sudan, nance. These countries' per capita incomes Zaire, and Zambia. are a good deal higher than most developing South Asia(")) resembles sub-Saharan Africa countries'; their combined current account defi- in that a large proportion of external public cit in 1977 was $11,760 million, about $1,100 debt is owed to official creditors and that a high million greater than in 1976. Net public bor- proportion of new borrowing was from official rowing was $2,748 million, a decrease of about lenders. The countries of the region owed a 13% from 1976, and equivalent to only 23% of the current account deficit. Net private bor- rowing was estimated to be approximately $2,800 million. Other sources, including short- term borrowing and the use of reserves of about $300 million, provided the remaining () Cyprus, Greece, Israel, Malta, Portugal, Spain, Turkey. and Yugoslavia. finance. At the end of 1977, total disbursed (S) Bahrain, Egypt, Jordan, Lebanon, Morocco, Oman, Syria, public debt was $25,022 million, an increase Tunisia, Yemen Arab Republic, and People's Demo- of 16% over 1976. Private debt was estimated (9) Benin, Botswana, Burundi, Cameroon, Central African at about $16,000 million, an increase of 22% Empire, Chad, Comoros, Congo, Ethiopia, The Gambia. Guinea, Ivory Coast, Kenya, Lesotho, Liberia, Mada- over 1976. About 70% of the total was owed gascar. Malawi, Mali, Mauritania, Mauritius, Niger, in , ,, , , . Rwanda, Senegal, Sierra Leone, Somalia, Sudan, Swazi- by Spain and Yugoslavia. Private debt In land, Tanzania, Togo, Ugancda, Upper Volta, Zaire, and Yugoslavia is the debt of the enterprise sector Zambia. Yugoslavia is the) debt of the enterprise sector Afghanistan, Bangladesh, Burma, India. Nepal. Pakis- of the economy. tan, and Sri Lanka. External Debt 17 total of $26,010 million at the end of 1977, to about $1,800 million in 1976, and slightly of which 97% was to official creditors. Most more than $ 1.000 million in 1977. of this debt was on highly concessional terms, The debt and borrowing of the 87 develop- either originally or as a result of successive ing countries that are not major oil exporters rearrangements of the service payments on may also be viewed by type of creditor. Of earlier loans. As in the case of African coun- the total external public debt of these countries tries, this reflects: (a) the stated policy of offi- at the end of 1977 of $166,535 million. ex- cial lenders to direct development assistance clusive of undisbursed balances, governments increasingly to very poor countries; and (b) the were owed $63,197 million, an increase of policies of the governments of the region. 14% over 1976. Of this amount. 80% was During 1977, net public borrowing, almost all owed on concessional loans with very long from official sources, was $1.833 million, about maturities and very low or no interest rates. $500 million lower than in 1976. The com- The remaining $12.435 million was almost all bined current account of these countries was accounted for by official export credits. Con- almost in balance, as it had been in 1976. This cessional debt increased by about 13 % in 1977, reflected a second consecutive appreciable sur- slightly less than in 1976. Disbursements of plus year in India. offset by deficits in the other concessional loans, net of amortization pay- major countries in the region. ments, were $4,012 million, a decrease of The external public debt of the countries in $2,296 million from a peak of $6,308 million the Latin America and the Caribbean region- in 1975 and $5,148 million in 1976. New gov- excluding the oil-exporting countries"') was ernment commitments of concessional loans in $62,558 million at the end of 1977, or about 1977 were also down, to $6,833 million from 38% of the total for all countries other than the a 1975 peak of $9,501 million and $8,769 mil- oil exporters. Private debt was about $22.000 lion in 1976. This decline was accompanied by million. The rate of increase of external public increases in grants (not included in these statis- debt fell to 20% from 27% in 1976. Private tics of external debt) and other changes in debt increased only 12%. Net public borrow- flows of development assistance that are dis- ing was $9,707 million, a decrease of $1,451 cussed elsewhere in this Annual Report. The million from 1976. Private sources accounted total amount of undisbursed concessional loans for 69% of external public debt outstanding at the end of 1977 was $18,579 million. at the end of 1977 and 81% of net borrowing Debt owed to international organizations by during that year. In Latin America, Brazil and the 87 developing countries was $27,047 mil- Mexico together owed $38,429 million, or lion at the end of 1977, an increase of 25% more than 60% of the public debt of the re- over 1976, and 51% over 1975. It accounted gion. Together, these two countries also ac- for about 16% of total disbursed debt, a share counted for a high proportion of the private that has remained stable through the first half debt outstanding. The net public borrowing of of the 1970s. Net borrowing was $5,229 mil- both countries decreased somewhat in 1977 lion in 1977, a sharp increase of 43% over from 1976, about 10% in Brazil and 17% in 1976, compared with a rise of only 6% in that Mexico; in each country, there was also a re- year. New loans committed in 1977 were duction of the currcnt account deficit. Both $11,255 million, an increase of 43% over countries added to their foreign exchange re- 1976. Undisbursed balances of loans from in- serves. Net private borrowing was lower, as ternational organizations at the end of 1977 well. Argentina, which had an increased cur- stood at $24,212 million. rent account surplus in 1977, reduced its net Loans from financial markets include loans public borrowing sharply, from $1,328 million from private banks, other private financial in- to $475 million, and increased its foreign ex- stitutions, and bonds. Debt outstanding to change reserves considerably. financial markets at the end of 1977 was Countries (other than Indonesia) in the East $62,670 million, an increase of 28% over Asia and Pacific region(12) had public external 1976. This followed increases of 36% in 1976 debt outstanding of $18,588 million at the end of 1977, an increase of 28% over the end of 1976. Private debt outstanding at the end of 1977 was about $4,400 million. It had in- creased only 11% over 1976. Net public bor- Argentina, Barbados, Bolivia, Brazil. Chile, Colombia, rowing in 1977 was $3,358 million, an increase Costa Rica, Dominican Republic, El Salvador, Guate- mala, Guyana. Haitt. Honduras. Jamaica, Mexico, of only $154 million over 1976. The countries Nicaragua, Panama, Paraguay, Peru, and Uruguay. of this region reduced their current account (P epublic of China, FPhilRepuebsl Singaporea and Thai- deficit from more than $5,000 million in 1975 land. 18 Summary and Background and 38% in 1975. Public debt owed to these Although the statistics on the aid flows from lenders represented 38% of the debt outstand- members of the Organization of Petroleum- ing to all creditors in 1977; this share had in- Exporting Countries (OPEC)(",) are much creased steadily from 16% in 1970 to 36% less firm than those for the DAC countries, in 1976. Net borrowings from financial mar- DAC reports indicate that total net disburse- kets decreased slightly in 1977, from 513,385 ments by OPEC members, which rose rapidly million to $12,796 million. New commitments from $1,740 million in 1973 to $5,952 million by these lenders increased by only $1,178 mil- in 1974, and to $8,164 million in 1975, and lion to $20,719 million, after having increased which were about $7,500 million in 1977, were by about 45% in 1976. Undisbursed or un- about $6,700 million in 1978. These figures drawn commitments stood at $10,962 million include both concessionary and nonconces- at the end of 1977; in some cases, these were sionary resources. In 1978, approximately "standby" commitments that would be drawn 72% of net disbursements were on conces- only as needed. sionary terms. Total OPEC flows represented some 2% in terms of these countries' GNP in Capital Flows from DAC and 1978, and concessional flows were about 1.5% OPEC Countries of GNP. The major donors were Saudi Arabia, Kuwait, and the United Arab Emirates. In re- Preliminary data from the Development cent years, net disbursements of ODA, as a Assistance Committee (DAC) W-) of the Or- percentage of GNP, by these three countries ganisation for Economic Co-operation and have averaged about 5.5%,7%, and 1%, re- Development (OECD) indicate that Official spectively. Development Assistance (ODA) of $18,300 The figures quoted for OPEC aid are based million by DAC members in calendar 1978 on the same statistical criteria as those applied rose by about 24% in dollar terms, and by by DAC countries, excluding not only trans- about 7% in real terms over 1977.(14) All 17 fers and payments for direct arms purchases, DAC member governments increased their but also financial resources for economic pur- outflow of ODA in dollars during the year, and poses when the terms do not meet the recog- 11 countries (u) also raised it as a share of nized concessionality criteria for ODA. their gross national product (GNP). As a per- centage of their combined GNP, ODA fromr members of the DAC rose slightly, from Energy and Nonfuel Mierals Development 0.31% in 1977 to 0.32% in 1978. In July 1977, the Executive Directors of In 1974, Sweden became the first DAC the World Bank considered and approved a country to meet the target of providing the program of lending by the Bank for the de- equivalent of 0.7% of its GNP in the form of velopment of the petroleum resources of its ODA. The Netherlands reached that target in developing member countries; they also ap- 1975, Norway in 1976, and a fourth country, proved an expansion of lending for coal and Denmark, in 1978. Sweden, the Netherlands, nonfuel minerals. The Bank had not previ- and Norway continued to provide ODA at a ously financed oil and natural gas production, percentage of GNP greater than 0.7% in 1978. and the decision to do so, and also, to increase Very preliminary data indicate that total flows of financial resources, which include ex- port credits extended by official and private (13) Includes Australia, Austria, Belgium, Canada, Den- institutions, direct and portfolio investments mark, Finland, France, Germany (Federal Republic of), I Italy, Japan, the Netherlands, New Zealand, Norway, and grants by private voluntary organizations Sweden, Switzerland, United Kingdom, United States, to developing countries by DAC members, and the Commission of the European Communities. (1)Official Development Assistance (ODA) is defined as were $56,600 million in 1978, compared with all flows to developing countries and multilateral institu- $49,493 milion in 197. Accordig to DAC ions provided by official agencies, including state and $49,493 million in 1977. According to DAC ltocal governments, or by their executive agencies, which estimates, total flows in 1978 were equivalent meet the following tests: to 1.00% of DAC mcmbers' combined GNP, (a) They are administered with the promotion of the to e~~~~~~~~~~~~~~~~conomic development and welfare of the develop- compared with 1.05% in 1977. These figures ing countries as their main objective. exclude significant amounts in Eurocurrency (b) Their financial terms are intended to beconcest sional in character with a grant element of at least borrowing by developing countries (discussed 25%. in th chaper, Borroings nd Fnance" in ('s) Austria, Belgium, Canada, Denmark, Finland, Ger- in the chapter, "Borrowings and Finance," in (IS)many, Japan, Norway, Switzerland, United Kingdom, this Annual Report). Although most Euro- and the United States. located i DAC counries, the (11) Algeria, Ecuador, Gabon, Indonesia, Iran, Iraqj, Kuwait, markets are Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emi- funds in any one loan do not necessarily orig- rates, and Venezuela. Capital surplus OPEC countries are: Kuwait, Libya, Qatar, Saudi Arabia, and the United inate in the country issuing it. Arab Emirates. Energy and Nonfuel Minerals Development 19 Key Totals of the Flow of Financial Resources from DAC Countries to Developing Countries and Multilateral Institutions: 1967-1969 to 1978 (US$ billions.) Average Net disbursements 1967-1969 1970 1976 1977 1978(P) Total flow of resources(') 12.80 15.80 40.70 49.50 56.60 As share of GNP (%) 0.75 0.78 0.98 1.05 1.00 Official Development Assistance (net) 6.50 6.80 13.70 14.70 18.30 As share of GNP (%) 0.38 0.34 0.33 0.31 0.32 Nonconcessional flows 6.30 9.00 27.00 34.80 38.30 As share of GNP (%) 0.37 0.44 0.65 0.74 0.68 Details may not add to totals because of rounding. (X) Includes grants by private voluntary agencies. (P) Preliminary. lending for coal, recognized the urgent need which there is promise of an early project be- of developing countries to exploit their indige- ing prepared. (In fiscal 1979, four projects- nous sources of energy. two in support of oil production, and two for Because of the experimental nature of the natural gas-were approved for a total of program, the Executive Directors reviewed, in $112.4 million.) January 1979, the Bank's experience gained From these missions, there emerged a clear in this area since 1977, and approved an ex- need in many countries for assistance at all pansion of the program for petroleum devel- stages of petroleum development: national opment, including, for the first time, financing energy planning, data collection and evalua- for exploration. The Directors noted the need tion based on expert surveys, exploration of for caution in providing finance in support of promising geological structures, technical and exploration activities. The need for increasing managerial training, advice on legal and fiscal technical assistance for energy planning and codes, and, in many cases, help in contract surveys, research, and development of new negotiations with foreign companies. and renewable forms of energy was also The need for assistance is the greatest in emphasized. the smallest and poorest oil-importing coun- Recent figures indicate that by 1985, oil- tries, for only a few of them have national oil importing developing countries may have an companies capable of undertaking themselves, oil deficit of some 4.35 million barrels a day, or commissioning the work involved in petro- and that the yearly costs of covering this defi- leum development. cit may total as much as $38,300 million- Given the magnitude of the capital invest- up from S14,300 million in 1975. ment required for petroleum development, At the same time, however, a survey com- and the need to draw on the technical know- missioned by the Bank on the oil and gas how of the oil industry, one of the Bank's situation in 70 developing countries suggests principal aims is to stimulate a greater flow that 23 developing countries (14 of which are, of private funds to the oil-importing develop- at present, nonproducers of petroleum) have ing countries, particularly risk capital for ex- prospects of finding "high" or "very high" ploration. To encourage this, it was decided quantities of petroleum, while a further 15 that the Bank would help finance the host (13 of which are current nonproducers) have country's share of the cost of a program under- prospects of locating "fair" quantities.(17) It is not surprising, therefore, that the Bank's offer to assist in petroleum development has met with a positive response from a growing num- basis of estimated recoverable quantities: "very high"- ber of oil-importing countries. Since July 1977, over 1,500 million barrels; "'high"-between 750 million and 1,500 million barrels; "fair"-between 100 million the Bank has recruited energy specialists, has and 750 million barrels. Measured by OPEC standards, and privte oil cmpanies, even the "~very' high" category is modest. But in terms consulted national and private oil companies, ofe domestic cns miption, even the lowest category, and 50 Bank energy missions have visited over "low" (less than 100 million barrels), may be signifi- cant. Most African countries, for instance, consume 20 member countries-particularly those in fewer than S million barrels yearly. 20 Summary and Background taken in partnership with a foreign oil com- technical assistance loans or credits. Possible pany. In cases where national oil companies Bank assistance in exploration has been dis- are technically and financially able to under- cussed earlier. In the area of project prepara- take exploration bv themselves, the Bank will tion, the Bank would extend loans and credits also be willing to assist. Strict measures to re- to help finance preappraisal drilling for fuel duce the risks of exploration financing would mineral projects. Use could also be made of be taken. Geological and geophysical surveys the Bank's Project Preparation Facility to of high quality will be undertaken in all cases. finance preparation work within that Facility's Probability analysis, in financial and technical $1 million limit. It is estimated that during the terms, of the risks and benefits must show next few years, the Bank will be financing an- favorable prospects for the discovery of petro- nually about 10 surveys and a similar number leum in commercial quantities. Exploratory of predevelopment drilling projects. drilling will be carried out in stages and in Petroleum Development. It is estimated that limited areas, with a careful review of the find- in fiscal 1980, the Bank might finance about ings at each stage before proceeding to the eight development projects and that this num- next, or, if the result were clearly unpromising, ber will grow to about 12 by fiscal 1983. terminating the exploration program, and can- celing the balance of the Bank loan or credit. Because the risk to the government would be substantial, the Bank would have a greater re- Although more than 50 developing coun- sponsibility than is usual to make sure that tries have coal occurrences, only 30 are pro- proposals were carefully reviewed. In the case ducing at present, satisfying 22 % of non-OPEC of a Bank loan, the Bank would apply its nor- developing country energy consumption. Coal mal tests of creditworthiness to ensure that its production in developing countries during total lending to the country remained within 1977 amounted to only 176 million tons, or prudent limits. 6% of world production. Eighty-three percent The Executive Directors of the Bank, while of this output level was produced by only agreeing that the Bank could proceed with four countries-India, Yugoslavia, Turkey, caution into the funding of exploration activi- and Viet Nam. ties, noted, however, that this was only part In developed countries, rapid increases in of a spectrum of activities-from planning to coal output are primarily constrained by de- the discovery and production of indigenous mand; potential coal users are hesitant to ex- fuels in developing member countries. Assist- pand coal consumption for power generation ance, therefore, will fall into three categories: or industrial thermal uses because of the national energy planning, predevelopment ac- transport and environmental problems asso- tivities, and fuel production. ciated with coal and because of the presence National Energy Planning. The Bank-com- of "public disbelief" that oil will remain in missioned survey on the oil and gas situation in short supply for extended periods of time. In 70 developing countries reported that in about developing countries, on the other hand, sup- 60 of them, help was needed in developing ply constraints limit a rapid expansion of coal national plans and policies for the sector, and output in the short and medium term. This in creating or strengthening a national energy constraint on supply is a result of several authority. The Bank's present program of sec- factors. tor and subsector work for 35 of these coun- First, the relative unattractiveness of coal tries will be extended during the next five compared with oil during the period of low years to cover the remainder. Help will also oil prices led to a lack of geological survey be given to resolve particular legal, technical, and preinvestment work in all but the few de- and administrative problems, and in training veloping countries with important coal mining local personnel. sectors. Since the lead time for the construc- Predevelopment Activities. These activities tion of coal mines and associated transport may be subdivided into three categories: sur- averages three to five years, the lack of geo- vey work, exploratory drilling, and project logical data and feasibility studies for coal preparation. As far as the first named is con- projects has meant that many developing coun- cerned, the survey estimated that at least 54 tries must add another two to four years of countries need assistance in evaluating and up- predevelopment work before investment deci- dating data from earlier surveys or in com- sions can be made. The resulting long lead missioning new surveys. Where such assistance time has limited the short-term growth of coal is unavailable from other sources, the Bank output in most developing countries. Second, would be willing to finance such surveys with while the economic/financial returns on oil Energy and Nonf uel Minerals Development 21 investments are high once oil is discovered, In their July 1977 discussions, the Execu- the return on coal development has remained tive Directors also agreed to the expansion of moderate because of: (a) the large capital in- the Bank's role in providing finance and tech- vestments needed for mine development, bulk nical assistance for mineral development in its handling, and transport; (b) the technical/ member countries. Through the Bank's role in geological characteristics of known coal re- providing finance and technical assistance for serves; and (c) the stiff international competi- mineral development in its member countries, tion limiting coal export prices. Third, coal it was thought that foreign investment-par- mine development and associated infrastruc- ticularly risk capital-could become more ture can today require anywhere from $20 to readily available for mineral production in $150 per ton of annual output, thus posing developing countries than it had been in the serious financing problems and competition immediate past. with other high priority investment projects. Since that decision, the focus of the Bank's Fourth, even where the geology of a coal de- activities in the sector has been to intensify posit is well known, where feasibility studies the dialogue with interested developing coun- have been prepared, and capital is available, try governments, potential co-lenders, and the lack of managerial skills and technical mining companies about the Bank's role, and know-how in coal production and coal utiliza- to develop a sector and project work program tion is a problem in all but a few developing to allow the financing of four to six mineral countries. As a result of these short-term and projects a year, including coal projects, be- medium-term constraints on the supply of coal, ginning in the early 1980s. As in the case of coal production in developing countries can the petroleum sector, staff have been hired, be expected to grow by no more than 7% to and more than four dozen missions mounted 7.5% a year (from a very low base) until in more than two dozen developing countries 1990, reaching 448 million tons of coal equiva- to identify, prepare, appraise, and supervise lent by that time. projects in the nonfuel minerals sector. The To overcome these constraints, and to en- experience gained during the past two years sure long-term coal availability in developing has confirmed that the Bank-through its tech- countries: (a) coal exploration and preinvest- nical, financial, and economic appraisals and ment work must be accelerated in order to subsequent participation in project financing ascertain the extent and viability of coal re- -is well suited to play a catalytic role throLigh sources; (b) coal exploration and preinvest- its "presence." In the majority of the nonfuel ment work must be encouraged whenever coal minerals projects presently under preparation, proves to be the most economic fuel; and (c) Bank involvement has, in fact, been a condi- the implementation of coal mining projects tion of participation for foreign lenders and and associated infrastructure for domestic coal sponsors. consumption or export must be encouraged It was noted two years ago that though a whenever economically feasible, number of nonfuel minerals projects had been During the past two years, a pipeline of prepared up to the financing stage, they had projects has been developed by the Bank that not been implemented because medium-term should permit lending for between two and metal market prospects were not sufficiently four coal/lignite projects a year through 1983. promising to ensure the financial and economic viability of many of them. Although prices for several metals have It is estimated that the total costs of these risen appreciably in the last few months, the fuel exploration and development activities overall situation has not materially changed in will require some $750 million in fiscal 1980 consequence. In fact, in the past 24 months, de- and about $1,500 million by fiscal 1983 (all in veloping country governments, private mining current dollars). Given the still relatively new companies, and international capital sources character of this program, the Executive Di- ahke have remained hesitant to invest in rectors agreed to monitor its evolution closely new nonfuel minerals projects in developing on an annual basis and to review yearly the countries. This hesitation is due, in the main, measure of the Bank's participation in these to the depressed medium-term metals market activities. It was also agreed that allocation of outlook and the slow economic recovery in in- funds for this program should not be at the dustrialized countries. Only after metal prices expense of the institution's other activities and demand for nonfuel minerals have re- especially those of direct assistance to the poor. covered will it be possible to ascertain more clearly whether an expanded program of tech- : * * nical and financial assistance by the Bank will 22 Summary and Background induce a substantially greater flow of invest- In May 1976, the Bank approved a $32 mil- ment in minerals exploration and production lion loan to the Philippines to help finance a in the developing countries. slum upgrading/sites and services project(18) in the Tondo Foreshore area of Manila. Al- Lessons of Urban Development though the project was composed of many parts, its principal features were the provision Since fiscal 1972, the World Bank has under- of urban services (pathways, water and sewer- taken a major commitment to alleviate urban age facilities, schools, health centers, commu- poverty; the rationale for this initiative is nity centers, etc.) for approximately 180,000 understandable in the light of the realities that slum dwellers and the emplacement nearby of today face most of the world's developing some 2,000 serviced sites for squatter families countries. affected by the expansion of part of Manila's -Over the last quarter century, the urban port area and the construction of a major population in developing countries has in- thoroughfare. creased at an annual rate of 5%, or nearly The loan followed months of discussions twice the growth rate of the population as a between the Philippines government and the whole. Bank-discussions that culminated in an agree- -The increase in the number of urban poor ment that substantive programs providing for is two or three times as high. The World Bank urban services could be suitable only if care estimates that almost a third of developing were taken to ensure their affordability and, world urban dwellers lack the income, and hence, their replicability. Thus, in the Philip- therefore the consumption, sufficient to main- pines, as elsewhere, more economical stand- tain a productive life. ards of design and construction for services -The population of cities in the developing and dwellings than those of conventional "low- world currently numbers 840 million, or 28% cost" housing schemes were introduced, and of the total population in developing countries. efforts were made to make the most of existing -By the year 2000, according to United structures rather than bulldozing squatter set- Nations estimates, another 1,200 million peo- tlements and slums. In addition to affordabil- ple in the developing world will live in an ity, replicability involved cost recovery from urban environment. Except for the poorest beneficiaries, who had to be given access to countries of South Asia and Africa, at least longer-term credit. half of the population of developing countries The 1976 project demonstrated the validity will live in urban areas. of these concepts. Available evidence appears -By the year 2000, there may be as many to confirm that the project has brought the as 600 million urban residents lacking reason- area to the "take-off" point, and that private able access to minimal nutrition and sanitation, investment by residents has been stimulated safe water, basic education, and shelter. to an extent even greater than previously In the past seven fiscal years, the Bank has predicted. provided assistance in the amount of $1,114 Perhaps the most important contribution of million to help finance 42 urban projects cost- the project, however, was its impact on gov- ing a total of $2,542 million. But the magni- ernment policy. The Metropolitan Manila area tude of the urbanization process, combined (population 5.5 million) is characterized by with its attendant problems, is such that Bank- great disparities in income and living stand- supported projects in the urban sector can deal ards. Estimates are that almost one-third of directly with only a very small part of the the city's population lives in slums and squat- problem. Urban projects, therefore, must be ter areas lacking in sanitation facilities, and justified as much by their influence on urban characterized by high levels of malnutrition, policies and institutions in the longer run as infant mortality, and parasitic and intestinal they are by any measurement of direct benefits. diseases. A review of those Bank-assisted urban de- Following an initial period in which much velopment projects that provide either serviced of its resources were devoted to the relocation sites or squatter upgrading to low-income of squatters from along drainage canals and urban residents suggests that despite difficul- other waterways in Metropolitan Manila, the ties in implementation, they can be justified on both grounds. The evolution of urban development proj- ects in the Philippines provides an example of ("5)A sites and services project is one that provides serviced how Bank intervention can inflLuence events (electricity and water and sewerage facilities) residential plots with core structures that can be expanded into beyond the immediate provision of benefits. houses. Lessons of Urban Development 23 Two views, taken 13 months apart, of the same home in the Tondo area of Manila. Housing material loans for the rehabilitation and upgrading of dwellings were made available to Tondo residents through Bank funds passed on to the Development Bank of the Philippines. r g -- ~- _ r -'4 t_M 24 Summary and Background country's National Housing Authority estab- from costly and subsidized programs of reset- lished (and is now actively expanding) a tlement to improvement in situ with recovery nationwide program of slum upgrading. Some of servicing costs. 450 prospective upgrading areas in the Metro- In those Bank-assisted projects currently be- politan Manila area, involving a population of ing implemented in the developing world, 1 million, have been identified, most with sani- some 1,250,000 poor urban dwellers are be- tation and health conditions similar to those in ing provided with serviced sites; an additional Tondo. In June 1977, two Presidential Letters 4.5 million are being covered by upgrading of Instruction (LOI), which carry the force of schemes. Already, enough projects are suffi- law, were signed to establish slum upgrading ciently advanced to show that the Bank's ap- as national policy. In addition, the LOIs speci- proach can provide acceptable dwellings, utili- fied that squatters could be displaced only by ties, and other services at costs that most of the installation of public infrastructure, and the urban poor can afford and at a fraction that no squatter was to be moved to a distant of the cost of earlier public programs for low- relocation site. Local governments of 14 cities cost housing. Moreover, health, education, and and municipalities in the Metropolitan Manila other facilities covered from local authorities' area established permanent technical teams to budgets can be provided at costs that those undertake design and feasibility studies for up- authorities can afford and that are well below grading slums, and similar teams were estab- the costs of earlier practices. Although the lished in the regional cities of Cebu, Davao, standards are economical, the projects clearly Cagayan de Oro, and Baguio. are resulting in a great improvement in the Other important new institutions recently living conditions of the urban poor, and their established in the country are beginning to low cost offers much better prospects for hous- affect significantly the development of national ing the unprecedented additions to urban urbanization policies. In addition to the Na- populations. tional Housing Authority, which was estab- Changes in governmental policy would prob- lished to consolidate government housing ably not, in the Philippines as elsewhere, have efforts that were previously dispersed among come about so quickly had it not been demon- six separate national bodies, a Ministry of strated that urban projects can be designed Human Settlements has been formed, with re- with affordability, replicability, and cost cov- sponsibility for national human settlements erage in mind-and that the living standards planning. of the intended beneficiaries have, in fact, Recent discussions between the Bank and improved. these government institutions have concerned The earliest Bank-assisted projects for ser- the two overriding urban issues facing the viced sites were designed to reach not far Philippines and on which the Bank's urban below the median level of family incomes. lending strategy has become increasingly fo- Compared with conventional public housing cused: the need to implement an effective programs, that was already an achievement. urban/regional development strategy, and the Bank-assisted projects have since been refined need to reduce the great disparities in access and adapted to reach urban families at much to basic sanitation and public health infra- lower income levels, often excluding only the structure that characterize urban areas. From poorest 10% to 20% of the population. these talks, and growing out of the fiscal 1976 The buildup of technical design expertise- project in the Tondo Foreshore area, a further not only among Bank staff but among con- $32 million Bank loan was approved during sultants and local authorities as a result of the past fiscal year. The project, which em- Bank initiatives-has been a principal factor phasizes the development of important new in this process. New methodologies and ana- institutional arrangements to alleviate the lytical tools have been developed, for example, worst conditions of disparities in the level of to test trade-offs between alternate design fea- services provided, will assist the government tures. Because market values of project sites in developing affordable solutions to the prob- often are well in excess of the costs, it has lems of poverty, shelter, and environmental been possible to charge more for commercial sanitation in the four most important urban plots and the plots allotted to higher-income areas of the Philippines (Metropolitan Manila, families in the target group and to charge poor Cebu, Davao, and Cagayan de Oro). The slum families correspondingly less than the share of improvement and resettlement component in the costs indicated by the plot size. the regional cities-comprising about 24% of Projects for upgrading slums and squatter total project costs-represents a continuation settlements can reach people even lower on the in the major shift in governmental emphasis income scale. An outstanding example is the Lessons of Urban Development 25 Kampung Improvement Program in Indonesia, projects shows that adequate collection sys- where three Bank-assisted projects are suc- tems can be instituted, particularly if there is ceeding in reaching over 4 million inhabitants advance discussion of obligations and more of the poorest quarters in five cities by provid- general public participation. However, it is ing basic improvements in living conditions at usually necessary to see the development of a cost of roughly $45 a person. Such projects appropriate collection systems as a process for improving existing squatter areas provide that may well not be fully achievable in an an important supplement to the serviced sites, initial project. Similar observations apply to which increase the total stock of housing for problems stemming from inadequate municipal an expanding population. Moreover, the proj- financial resources and budget procedures, and ects providing serviced sites or upgrading to the raising of interest rates for housing loans squatter areas can benefit even those urban to give a positive return. While considerable poor who cannot afford such modest dwellings. success has been achieved in raising interest The provision of additional sites and the stimu- rates in Bank-supported urban projects, the lus given to the construction of new dwellings existence of subsidized interest rates for other or the expansion of old ones increase the avail- housing schemes for richer groups, and the ability of rented rooms which are often of overall shortcomings of national interest rate critical importance to the very poor. structures tend to limit the extent of progress The economical layouts, the better location in any one project. in relation to employment opportunities, and These considerations make it clear that the the improved facilities for transport, health, impact of serviced sites and upgrading proj- and education all contribute to urban efficiency ects extends well beyond the completion date, even though the contribution is difficult, if not when project funds have been disbursed and impossible, to quantify. The quick take-up of the corresponding physical structures are com- commercial and other employment sites indi- pleted, and well beyond the immediate project cates their success in fostering productive em- field. At the time of formal completion of proj- ployment, if on a rather limited scale so far. ects, allottees may have only begun to occupy The evident expansion of commerce and small- the serviced sites, and the longer-run implica- scale enterprises in project sites also indicates tions, both for occupants and for the program a significant addition to local output and em- and policy makers, will only be partially vis- ployment, even though net employment gains ible. It, therefore, will eventually be necessary from a project cannot be measured because of to consider their impact over an extended the wide secondary effects. Part of this local period. expansion of economic activity-which adds to net output, savings, and employment-is It was once feared that urban development directly attributable to the construction asso- projects would prove more difficult to imple- ciated with the projects; part is due to the in- ment than the Bank's more traditional opera- direct effects of improved access and transport. tions. In fact, however, their implementation The experience to date also demonstrates has generally been reassuring, even though the need for a sequence of projects to over- many difficulties remain. The proportion of come some of the inherent difficulties in de- such projects considered to have major or veloping appropriate programs and policies in moderate problems is no greater than that in this field. The general shortage of even poorly other sectors. Although experience in these trained local staff, and the time required to and other new areas of Bank lending is still alter basic procedures, particularly those re- too limited to permit firm conclusions, the evi- lated to land and tenure, make first projects dence provides grounds for increased confi- especially difficult and limit the advances that dence that the evolution of Bank-assisted urban can be made. Yet without the stimulus of pro]ects is not inconsistent with the mainte- initial projects, it is doubtful that many of the nance of high standards of implementation. obstacles to a more rational approach to meet- The lessons learned from Bank operations ing the needs of expanding urban populations since fiscal 1973 in the urban sector suggest, could be attacked, let alone solved, in the therefore, that the target for such Bank lend- near future. ing-by fiscal 1980, at least one-third of all Clear examples of the problems that can be urban-related lending will provide direct bene- diminished through a sequence of projects fits to people living in poverty-can be at- are those relating to collections of monthly tained. This 33% proportion roughly corre- charges from site occupants and the develop- sponds to the proportion of the urban poor in ment of alternative financing sources. The the developing world. If they can, indeed, be favorable experience in some Bank-assisted reached, it would involve a substantial gain 26 Summary and Background Bank and IDA: Lending to Countries with Annual per Capita Income 2,938.8 below S296,"' 1971-79 (US$ millions. Fiscal years.) Bank IDA Total 2,383.8 3,000 2,24356 2,500 1,818.6 i 1,869.8 1,717.7 2,000 1,452.6 1,116.7 1,500 995.7 555.0 I0o0 791.5 601.0 425.0 417.2 500 1979 204.2 1978 1977 1976 0 1971-75 Annual Average (1) 1977 dollars. Environmental Affairs 27 for them above their normal share of benefits ing projects. Today, the Bank's systematic en- from public investments. vironmental operations are comprised of sev- Yet the lack of experience, both inside the eral parts, four of which are described here.i'9) Bank and among its borrowers, with poverty- Environmental Monitoring of Projects. More oriented urban projects has limited the fast than 700 Bank projects now in preparation are build-up of a program of urban development. expected to have environmental implications. Lead times for first projects in countries are A monitoring system earlier installed by inevitably long. But it has not been time lost, OEHA enables the Bank's operational units since first projects provide the necessary foun- to consider these problems in a timely and dations for a sequence of subsequent projects. appropriate manner. In addition, the more In other ways, however, fiscal 1979 stands than 750 projects having environmental or worlds apart from the time seven years ago, health components are closely followed so when the first Bank-assisted urban develop- that the effectiveness of the measures can be ment project was approved. Though it is still gauged, remedial action taken, and lessons too early to say that what was almost revolu- learned applied to projects in preparation. tionary as an approach in 1972 is now con- Environmental Screening of Projects. All ventional, it can be said that the case for the Bank-assisted projects are subjected to a approach on which the Bank program is based screening process that excludes many projects is now generally at least acknowledged, and from further review since their environmental has become increasingly adopted. There is a and health dimensions seem to pose no sig- much greater appreciation for the fact that nificant problems. The environmental implica- urban development does not have to imply tions of most of those that are not excluded development to benefit the "urban elite," but are assessed in-house; the remainder-about that there are serious problems of poverty to 8% of all projects-need more extensive work. be faced within the urban areas and that de- In all, more than 100 projects have been dis- velopment of a viable urban economy should covered to have major environmental or health be part of an overall strategy for regional problems demanding special attention. development. Environmental Assessment. The intensive The Bank's program has played a leading treatment given to those projects with major role in this change in attitude-from the pre- environmental ramifications usually includes viously prevailing refusal to acknowledge the an on-site environmental assessment that can dimensions of the escalating urban problems, last for a period of a few weeks-by a single or the negative attempts to deal with them, consultant or Bank employee-to a far longer towards a much more positive attempt to period, in which a team encompassing several analyze and tackle the difficulties. The con- disciplines may spend as many as five man- tribution of the Bank's program to this change months in the field. Most special assessments in attitude is perhaps the largest of its achieve- have resulted in the incorporation of major ments to date. environmental and health measures in the proj- ect design or the loan agreement. Environmental Affairs Environmental Projects. In fiscal 1974, the Executive Directors of the Bank endorsed a With the installation, in 1970, of the post proposal that permitted the Bank to lend di- of Environmental Adviser (since expanded rectly for environmental projects. Since that into the Office of Environmental and Health time, developing country governments have Affairs-OEHA), the World Bank became given increasing attention to projects involving the first development assistance agency to afforestation and reforestation, soil conserva- screen development projects, on a systematic tion, countering desert encroachment, flood basis, for their environmental and health im- control, range management, abatement of air plications. At first, such screening, of neces- and water pollution, and wildlife protection. sity, occurred at the "eleventh hour," as deci- A growing number of Bank projects, and a sions had to be made on projects that had much larger number of project components. already progressed far along in the Bank's have been designed to help meet these needs. project "'cycle" (identification, preparation, appraisal, negotiation). In time, however, environmental questions (':"Other activities, not described, include the publication of guidelines and policy papers on issues related to the en- came to be handled as a routine and integral vironment and occupational health and safety; technical part of the analysis of each Bank project, and assistance to governments, mostly on how to incorporate the environmental dimension into sectoral planning; borrowers were urged to take environmental liaison with other organizations in the UN system and with nongovernmental organizations; and education and and health issues into account when identify- training. 28 Summary and Background During fiscal 1979, the Executive Directors from its previous heavy reliance on the private of the Bank reviewed the environmental poli- capital market in the United States to the cies and practices of the Bank, and gave their capital markets of Germany, Switzerland, and strong endorsement to the continuation of the Japan as well as to other countries, including policy that seeks, in the Bank's project work, those that export petroleum. In this process, the to adapt standards of environmental protection Bank has incurred nearly $16,000 million of and control to the circumstances of the project obligations in currencies other than the US and the country, and to incorporate in its proj- dollar. Since the proceeds of Bank borrowings ects all appropriate environmental and health are used for its lending, the currency diversifi- measures. cation of borrowings has resulted in a diversi- In the future, the Bank is determined to fied currency risk for its borrowers. make greater efforts to undertake environ- In recent years, exchange rates among the mental "post-audits" of selected projects to various currencies that the Bank borrows and determine the accuracy of ecological predic- lends have changed significantly. These changes tions, the efficacy of prescribed control meas- have, for the most part, increased the debt ures, and the adequacy of its supervision over service obligations of the Bank's borrowers the environmental aspects of projects being in terms of both the borrowers' own national financed. Such information, it was noted, is currencies and the US dollar, the currency in important to the improvement of the quality which the Bank's loan commitments are de- of the Bank's work, as some environmental nominated. They have also accentuated the problems may not appear for years after a differences in exchange rate effects on individ- project has been in operation. ual borrowers that have always been part of In addition, the Bank will continue its at- Bank operations. In other words, because the tempts to persuade other lending institutions degree of exposure to exchange rate changes -especially development finance institutions, is not the same for all borrowers, the large many of which currently give less rigorous con- shifts in currency relationships in recent years sideration to the environmental consequences have imposed uneven burdens on the Bank's of proposed investments-to harmonize their borrowers, at least in the short term. policies and treatment of environmental issues. Several methods to equalize exchange rate The Bank's efforts to promote national en- risks among borrowers have been suggested: vironmental programs and the identification of currency pooling, differentiation of interest environmental projects will also be expanded, rates, and change in currency allocation. After especially in those developing countries whose thorough investigation of the options, it was environmental and renewable resources may concluded that equity could be best achieved have deteriorated to such an extent that re- by the adoption of the first of these methods. medial action is urgently required. Pooling is a concept that aims to solve the But attention will also be directed to those perceived inequities created under the present countries where the environment has not, as system by a change in accounting procedures. yet, suffered greatly from mismanagement. The pooling system would assure the equal- The growing realization on the part of devel- ization among borrowers of the currency risk oping country governments that a relatively exposure of all loans included in the system. small investment in prevention at an early Participation in this scheme might be especially stage is usually far less expensive, as well as helpful to smaller borrowers whose balances more effective, than subsequent remedial ac- outstanding are not large enough (or disburse- tions that are certain to become necessary later ments frequent enough) to permit a kind of on, has gone far in making this aspect of the "natural" pooling to operate. Bank's work more welcome in recent years. Adoption of a currency pooling system was Experience has demonstrated that it is possible approved by the Executive Directors of the to incorporate suitable environmental and Bank during the past fiscal year, and its design health protection measures into development and implementation are currently scheduled to projects, and to do so at a cost-between be completed by July 1, 1980. 0% and 3%-that is both small and accept- able to the borrower and developing country governments. The nature of the operations of development finance companies (DFCs) is different in many Distributing Exchange Rate Risks respects from that of the typical Bank bor- rower. The DFCs are financial intermediaries Over the last decade, the Bank has diversi- whose function is to raise and relend capital fied the sources of its borrowings, moving away for investment. They do not take foreign ex- Distributing Exchange Rate Risks 29 change risks themselves; rather, they either pass bursements made under existing or new loans the foreign exchange risk on to the subbor- to DFC borrowers that are obliged to pass on rower or the risk is borne by the government. the full foreign exchange risk of a Bank loan to In the first case, DFC subborrowers are not their subborrowers. With effect from March protected by the sort of "natural pooling" that 15, 1979, each such disbursement has been shelters large and frequent Bank borrowers. made half in US dollars and half in one of three It was, therefore, understandable that many of currencies-Deutsche mark, Swiss francs, or them had become reluctant to take on a foreign Japanese yen. This procedure does not, of exchange liability that may bear no relationship course, eliminate the foreign exchange risk, but to the source of procurement or to their foreign it does, however, reduce the effect of fluctu- exchange earnings. This reluctance was com- ations among foreign currencies and, con- pounded by the fact that, under Bank proce- sequently, provides a firmer basis for entre- dures, subborrowers had no way of knowing at preneurs to assess the profitability of their the time of commitment what their foreign ex- investments. The interim procedure will be change liability would be (i.e., whether it would reviewed when the general currency pooling be US dollars, Swiss francs, Deutsche mark, system goes into effect. Also still to be decided Japanese yen, or some other currency). is whether the interim procedure should be ap- Many DFCs drew the Bank's attention to plied to DFCs in countries where governments this problem, and some stated that they would have agreed to carry the full foreign exchange be unable to commit any substantial portion of risk themselves. their loans from the Bank in these circum- There are two or three agricultural credit stances. The objective of Bank lending through institutions in middle-income countries that DFCs to encourage productive investment in relend the proceeds of Bank loans mainly to the private sector of member countries was, to agrobusinesses and that pass the foreign ex- that extent, being frustrated. change risk on to subborrowers. The same To resolve this problem, including those disbursement procedure will apply to these faced by DFCs under existing loans from the borrowers. The great majority of agricultural Bank, as an interim measure, the Bank decided, credit banks to which the Bank lends are pro- in fiscal 1979, to alter its disbursement proce- tected by their governments against the foreign cedures. The change would affect only dis- exchange risk, however. 30 Bank and IDA: Trends in Lending, by Sector (US$ millions. Fiscal years.) 1977 1978 1979 Bank IDA Total Bank IDA Total Bank IDA Total Agriculture and rural development 1,637.8 670.1 2,307.9 1,929.0 1,340.7 3,269.7 1,568.1 953.7 2,521.8 Education 210.1 78.5 288.6 268.9 83.0 351.9 245.5 250.5 496.0 Energy 150.0 - 150.0 - - - 82.4 30.0 112.4 Industrial development and finance 730.7 25.5 756.2 829.5 80.4 909.9 628.6 48.2 676.8 Industry 570.8 16.0 586.8 364.8 27.0 391.8 72.1.0 121.5 842.5 Nonproject 126.5 90.0 216.5 80.0 75.0 155.0 301.5 105.0 406.5 Population and nutrition 42.5 4.8 47.3 25.0 33.1 58.1 17.0 97.0 114.0 Power 784.5 167.0 951.5 900.0 246.2 1,146.2 872.5 482.4 1,354.9 Technical assistance 1.5 15.4 16.9 11.0 9.3 20.3 - 29.7 29.7 Telecommunications 140.0 - 140.0 153.6 67.5 221.1 110.0 - 110.0 Tourism 98.6 - 98.6 50.0 - 50.0 66.7 46.5 113.2 Transportation 875.6 172.0 1,047.6 918.1 174.8 1,092.9 1,430.9 473.5 1,904.4 Urban development 128.2 30.0 158.2 222.4 146.2 368.6 297.5 12.0 309.5 Water supply and sewerage 262.5 38.2 300.7 345.4 29.8 375.2 647.3 371.5 1,018.8 Total 5,759.3(1) 1,307.5 7,066.8 6,097.7 2,313.0 8,410.7 6,989.0 3,021.5 10,010.5 Details may not add to totals because of rounding. (1) Includes $222.6 million lent on Third Window terms. Bank and IDA: Trends in Lending, by Sector (Percentage. Fiscal years.) 1977 1978 1979 Bank IDA Total Bank IDA Total Bank IDA Total Agriculture and rural development 28 51 33 32 58 39 22 32 25 Education 4 6 4 4 4 4 4 8 5 Energy 3 - 2 - - - I I I Industrial development and finance 13 2 11 14 4 11 9 2 7 Industry 10 1 8 6 1 5 10 4 9 Nonproject 2 7 3 1 3 2 4 3 4 Population and nutrition I I I - 1 1 - 3 1 Power 14 13 14 15 11 14 13 16 14 Technical assistance - I - - - - - I - Telecommunications 2 - 2 2 3 3 2 - I Tourism 2 - I I - - 1 2 1 Transportation 15 13 15 15 8 13 21 16 19 Urban development 2 2 2 4 6 4 4 - 3 Water supply and sewerage 4 3 4 6 1 4 9 12 10 Total 100 100 100 100 100 100 100 100 100 Details may not add to totals because of rounding. 31 The Year's Activities, by Region Eastern Africa Trend in Lending, 1966-79 (US$ millions. Fiscal years.) (00) Number of Operations Per capita - Borrowers, Population(') GNP 1977(2) - fiscal 1977-79 (000) (US$) Botswana 728 410 2,000 Burundi 4,156 130 Comoros 370 190 Ethiopia 30,245 110 Kenya 14,614 270 Lesotho 1,250 240 Madagascar 8,085 240 = Malawi 5,597 140 ) Mauritius 906 760 l °°° Rwanda 4,379 130 - 645.8 Somalia 3,660 110 572.2 560.3 (35) Sudan 16,919 290 3 440.6 (39) (35) Swaziland 511 610 -3(25) Tanzania 16,363 190 120 6 Zaire 25,694 130 (13) Zambia 5,128 450 0 NOTE: The 1977 estimates of GNP per capita presented 1966-70 1971-75 1976 1977 1978 1979 above are from the 1979 World Development Indicators. Annual Averages (') Estimates for mid-1977. (2) World Bank Atlas methodology, 1975-77 base period. Given their heavy reliance on the export of Increases in agriculture production in the a very narrow range of primary products and Region were offset, however, by major, ad- their dependence on rainfed agriculture for a verse movements in the international commod- major share of total income, it is not sur- ity terms of trade. Copper exports, which prising that economic fortunes in the Eastern account for nearly a third of regional exports Africa Region continue to be strongly affected in dollar terms, recovered somewhat in value, by the weather and international commodity but the 1978 price level still remained far be- prices. Fiscal 1979 was marked by varying low the long-term average. Nor did tropical weather conditions throughout the Region- beverages, which constitute 12% of regional heavier-than-normal rains in Kenya, Mada- exports, fare well. Their prices fell sharply gascar, and Somalia; floods in Sudan; and from the extraordinary peak reached in 1977. drought in Zambia and in parts of Ethiopia. In While the financial pressures accentuated by general, however, the weather did not adverse- the economic turbulence of the period, 1973- ly affect harvests, which were expected to be 74, had been relieved, in several countries, by in the normal range. Encouragingly, food pro- the upswing in coffee and tea prices during duction continued to rise in usually food-short 1976 and 1977, the sharp decline in beverage Tanzania; analysts gave as a major reason, in- prices during 1978 (31% for coffee and 18% creased price incentives offered to farmers. for tea) revealed, once again, the structural 32 The Year's Activities, by Region weakness in government finances and the bal- some countries, imports in 1978 declined in ance of payments. In 1978, the composite price real terms; in others, only little growth was index of Eastern Africa's exports declined by registered. Given the fact that many countries 5% (the fall in beverages was partially offset depend heavily on foreign trade taxes as a by the rise in beef, groundnut, sisal, and to- source of public revenues, the sluggishness of bacco prices); commodity terms of trade de- imports, combined with declines in export teriorated by 11 %; and the persistent rise in prices, had the effect of reducing the tax base. import prices continued into 1979. Though several governments both slowed the Adverse external conditions led to a decline pace of development and acted to reduce re- in foreign exchange reserves in most countries, current expenditures, budgetary deficits con- and several of them ended 1978 with a nega- tinued to be widespread. Most countries of the tive net foreign asset position. The decline in Region experienced double-digit inflation. foreign exchange reserves prompted a number These difficulties are expected to persist for of governments to borrow in the Eurodollar some time. While prices of some primary ex- market at interest rates well over the London ports are likely to rise soon (e.g., copper and Interbank Offered Rate (LIBOR) and with sugar), recovery is not yet in sight in other maturities of only five to seven years. Several cases, such as for tropical beverages. Further- others are reported to be in advanced stages more, the rise in the price of imported oil and of negotiating similar loans. While the recourse manufactured goods is not likely to be re- to commercial bank credit can inject quickly versed in the short run. Neither is it likely that much needed funds into an economy, the at- importing countries will quickly dismantle pro- tendant medium-term debt-servicing require- tective barriers impeding exports from the ments could prove to be worrisome in some Region. The Region's shortage of foreign ex- cases. Several countries have, in addition, ac- change has not been caused solely by adverse cumulated large arrears in trade and other movements in its terms of trade; it is also due payments. A general, regionwide effort was to persistent structural problems and continu- made in fiscal 1979 to sustain the growth in ing weaknesses in economic management, imports by drawing down reserves, borrowing both of which have made diversification in abroad, and accumulating arrears; in several production and exports difficult to achieve. cases, however, the effort proved futile. In In some cases, such as in Sudan and Somalia, Lending to Borrowers in Eastern Africa, by Sectors (US$ millions. Fiscal years.) Annual Annual Average Average 1966-70() 1971-75 1976 1977 1978 1979 Agriculture and rural development $ 12.8 $ 95.5 $ 93.4 $235.8 $165.7 $198.6 Education 15.5 29.6 64.1 37.3 57.7 26.5 Energy - 4.0 )- - - Industrial development and finance(2) 1.0 13.3 69.5 46.5 35.9 19.2 Industry 0.5 31.7 - 23.0 45.0 60.0 Nonproject - 18.0 - 45.0 - - Population and nutrition - 2.4 - - Power 16.1 57.1 63.0 55.0 48.0 9.0 Technical assistance - - 11.5 - 3.0 7.5 Telecommunications 6.5 20.4 - - - 20.0 Tourism - - - 17.0 - 14.0 Transportation 67.9 79.5 82.6 90.6 99.0 265.0 Urban development - 9.5 - - 70.0 - Water supply and sewerage 0.2 5.2 56.5 22.0 36.0 26.0 Total $120.5 $366.2 $440.6 $572.2 $560.3 $645.8 Of which: Bank $ 76.2 $176.8 $216.0 $311.7 $162.4 $266.0 IDA $ 44.3 $189.4 $224.6 $260.5 $397.9 $379.8 ') Includes lending to South Africa which is considered a past borrower. (2) Includes lending to development finance companies and small enterprises. Eastern Africa 33 IDA has provided three credits, totaling $18.6 million, for road and highway development in landlocked Lesotho. In this photo, village members of a labor-intensive construction unit are building a road that will link up with a highway leading to the capital city of Maseru. the emigration of skilled people, particularly policies of the countries affected, a flexible and to the oil-producing Arab countries, has meant sympathetic response from countries and that talented managers are particularly in short agencies that provide development assistance, supply. The countries have, nonetheless, ac- and a willingness by all concerned to rethink cepted the short-term problems associated with traditional approaches to economic and finan- this emigration in exchange for the invest- cial problems such as those touching on the ments and remittances that have been returned pricing and allocation of foreign exchange, to them. Furthermore, political uncertainty the management of governmental, quasi-gov- and intermittent warfare continue in several ernmental, and private debt, the system of areas, acting to divert funds into defense and incentives for commodity production, and the to distract attention from important develop- fixing of fiscal priorities. ment issues such as the need to reform taxes, A good example of the fiscal priority prob- tariffs, and delivery systems. lem is the treatment of recurrent government expenditures in the context of adjustment pro- Reconciling Imperatives grams. The effective operation of agricultural extension services, education and health sys- The challenge is to resolve urgent liquidity tems, and the regular maintenance of transpor- problems without endangering the long-run tation networks is in danger of being impaired process of social and economic development. in the name of fiscal restraint. Such restraint Efforts have to be made to reconcile the im- is bound to be false economy. New projects peratives of short, medium, and long-run pol- have been started with foreign financing for icies. These efforts will not be easy; they will imported capital equipment and technical as- require changes in the politically sensitive sistance by expatriate personnel at a time when 34 The Year's Activities, by Region fiscal restraint has denied funds, either for Development Bank/Fund. A noteworthy ad- meeting local costs of "ongoing" projects, or dition was the EEC (European Economic for fully utilizing existing capital assets such Community) Special Action Account, estab- as schools, clinics, roads, railways, and exten- lished with funds contributed bv the member sion systems. Such anomalies in the allocation countries of the Community and administered of resources can only compound the problems by IDA on their behalf. of adjustment and accentuate the already acute imbalances in the economy. Faced with the need to restrain expenditures, governments must examine all options carefully and prag- Thirty-one percent (11 loans and credits) of matically. Across-the-board cuts will seldom the Region's lending was in the agriculture provide a good solution. In some cases, it may and rural development sector in fiscal 1979, be wise to raise taxes or tariffs for government compared with the identical average in the services rather than restrict public expendi- period, fiscal 1976-78. As in previous years, tures. There may well be occasions when the agricultural lending was, in the main, for pro- adverse impact on development of a slowdown grams of rural development. Though training in public investment will be less than from a represents a small share in total project costs, reduction in high priority current expenditures. it has been accorded an increasing importance; The Bank is attempting to draw this problem training components were included in all the to the attention of both borrowers and financ- agriculture and rural development projects ing agencies. approved during the past fiscal year. Agricul- ture research also received increased emphasis. Bank and IDA Activities Of the 11 projects in the agriculture sector, six were provided with an applied research Total Bank and IDA lending in the Region component. in fiscal 1979 reached $646 million, about 22% An example of a project that includes both above the average of the previous five years. training and research can be found in one Thirty-five loans and credits were approved, supported by a $10.5 million IDA credit in about equal to the average of the previous five Somalia. The extension and training project fiscal years. New IDA commitments, at $380 will concentrate on the development of man- million, were 36% above the 1974-78 average. power required for the efficient operation of Major increases occurred in lending for agri- the National Extension Service for smallhold- culture and rural development and transporta- ers and the establishment of a Farm Manage- tion; these two sectors accounted for 31% and ment Advisory Service for large-scale (gov- 41%, respectively, of total lending in the Re- ernment and cooperative) farms. Practical gion in dollar terms. preservice training for farm managers and Continuing strong efforts toward coopera- extension staff will be offered at the Farm tion and coordination by the Bank, other Management and Extension Training Center. multilateral and bilateral financing agencies, A master plan for strengthening the national and recipient countries resulted in a sharp research system and its links to extension, jump in co-financing during the year. Funds strengthening the Agricultural Secondary committed by allco-financers under co-financ- School and the Central Department of Statis- ing arrangements with the Bank and IDA tics, and training abroad for selected person- reached a record of $514 million, or 140% nel are the main project components. above last years level, and 125% above the Some 90,000 farm families in Malawi are 1976-78 average.(,) expected to benefit from the implementation Not only did the number of co-financed of the first phase of that country's National projects increase; the average contribution of Rural Development Programme (NRDP). the co-financing agencies rose as well: $27 The program seeks, over the next 20 years, to million per project during the year, compared increase productivity-especially small-farm- with about $15 million in fiscal 1978 and $15 er productivity-throughout the entire coun- million for the period, fiscal 1976-78. try by providing farmers with agricultural in- During the year, 21 agencies participated puts and extension services, and by developing in co-financing Bank-supported and IDA-sup- ported projects. While there were a few changes in the list, the most important con- tributors continued to be the industrialized countries of Europe and North America, the (')Co-financing data have been compiledi from World Bank reports of proeects at the time of their Board approval. Arab oil-producing countries, and the African and do not reflect changes in amounts since that time. Eastern Africa 35 soil conservation, watershed management, and It is estimated that, in about eight years, afforestation measures. Credit, marketing, and the project will help meet the fuel needs of veterinary services will be provided, health about 6,000 farm families and, at the same facilities and roads will be built, and drinking time, allow agricultural residues (such as water supplies will be furnished. Cultivation grain stalks and legume hulls), which would of new land will be discouraged and emphasis no longer be burned as fuels, to be returned will be placed on obtaining higher yields from to the land. This will alleviate soil degrada- already cultivated areas through improved tion and erosion which are serious problems husbandry practices. The first phase of the directly linked to the fuel shortage. program, to be aided by a $22 million IDA Much of the success of the project will credit, will cover operations in eight new "de- depend on how quickly Burundi's Forestry velopment areas" of the country, each of Department can respond to the governmental which has a population of approximately emphasis on developing the country's timber 25,000 farm families. In addition, the NRDP resources. The project, therefore, includes credit will finance the consolidation phase of measures for project management support, the 490,000-hectare Lilongwe Development and a component designed to establish a sys- Programme, which was begun in 1968 with tematic long-term training program so as to IDA support; this phase will mainly involve provide the forestry service with higher-level the completion of that program's extension and intermediate-level Barundi staff. On-the- and credit activities. job training will be provided for lower-level In Sudan, a $15 million credit in support of staff, including extension workers. the southern region agricultural project will provide a follow-up to the southern region re- Industry and Infrastructure habilitation project that was approved in fiscal 1974. The newest project aims at further in- Lending for industry, directly or through creasing the production of food crops and at financial intermediaries, accounted for about improved nutrition. Through further crop 12% of the Region's total lending during fiscal trials, by expanding smallholder rainfed cof- 1979, or approximately the same proportion fee and cotton production, by strengthening as in recent years. The main emphasis con- the extension service, by providing input sup- tinued to be on institution building, which, in plies and improving transport and marketing the Eastern African environment, is crucially facilities, and by providing for a wide variety important. The Bank, through its financial and of services aimed at increasing livestock pro- advisory assistance, endeavors to encourage duction, an estimated 44,000 farm families are the growth of specialized term-lending institu- expected to experience a substantial increase tions that have the capability of pursuing in their yearly incomes. sound investment policies based on proper An important aspect of the project will be economic and financial analysis of investment the role of a newly formed Project Formula- projects. tion Unit that will help plan and monitor agri- In Rwanda, a second IDA credit, this time cultural development activities throughout the in the amount of $5.2 million, to the Rwanda region. That Unit, plus a monitoring and eval- Development Bank (the only nongovern- uation unit, will advise the southern Ministry mental source of foreign exchange term financ- of Agriculture on project proposals, will pre- ing in the country), will permit assistance pare district development plans, and, from aimed at the development of the industrial these, will draw up projects for bilateral and sector to continue to be channeled through multilateral financing. an institution that has proven to be an efficient In Burundi, a $4.3 million IDA credit will allocator of foreign resources for small and help the government's efforts to reverse the medium-sized projects. A feasibility study will rapid depletion of its forests. As a first stage also be financed through the credit to deter- of a long-term program, two tree plantations mine if the establishment of an audit firm in will be developed-a 2,000-hectare short rota- Rwanda-where, as in many other countries tion eucalyptus plantation to supply charcoal, in Africa, though such firms do not exist, they firewood, and construction poles for the in- are urgently needed-is justified. habitants of Bujumbura, and a 5,000-hectare As the Bank increases its support of the pine plantation to produce saw timber. Thirty directly productive sectors (agriculture, indus- nurseries will be established at the communal try) in developing countries, the importance (tertiary) administrative level to produce euca- to those sectors of an adequate infrastructural lyptus seedlings for sale to communes and base has become ever more apparent. The farmers. Bank, therefore. is increasing its assistance for 36 The Year's A ctivities, by Region projects designed to provide needed low-cost, grew to the point where it could administer efficient infrastructure -particularly roads, and implement a sector lending operation, in- but also water supply facilities and power sys- cluding the ability to plan and process sound tems-consistent with its support to the di- projects in a timely and efficient manner. rectly productive sectors. In its lending for A $5 million IDA credit to help finance a roads, the Bank's emphasis has shifted from highway project in the Comoros marks the support of national or main road networks Bank's first lending operation in that island to support of feeder and lower-class rural country, which gained independence only in roads that help support agricultural develop- 1975, and which became a member of the ment. Pilot programs have been established Bank in December 1976 and IDA in Decem- to identify the most suitable type of road or- ber 1977. This operation also afforded other ganization needed at the district level to plan, external agencies-the African Development construct, and maintain such roads. Studies Fund and the OPEC Special Fund, which were have also been carried out to determine the co-financers of the project-the opportunity to most efficient labor/equipment "mix" for their provide financial assistance to the Comoros. construction and maintenance. And local staff Improvement of the country's transport infra- have been trained so that organizations respon- structure is crucial to the Comoros' socioeco- sible for the care of roads serving the rural nomic development-ports to facilitate foreign areas can be set up at the district level. trade, and highways to help develop the island's The first Bank "sector loan" made to Kenya agricultural sector. Many villages are not will support the middle three years of the linked to the main road system or are, at best, Kenyan government's comprehensive High- connected to it by tracks that only four-wheel way Sector Development Plan for the years drive vehicles can negotiate. The project has 1979-83. In this instance, Bank assistance, in three main objectives: institution building the form of a $90 million loan, will embrace through a program of technical assistance and the entire spectrum of the country's road net- training of local staff, which is expected to work: paved, gravel, and dirt roads, as the improve the performance of the national road Sector Development Plan includes provision administration; a road maintenance and im- for the strengthening, reconstruction, and up- provement program that will help finance the grading of 1,650 kilometers of trunk roads improvement, to all-weather standards, of and 14,950 kilometers of primary, secondary, about 120 kilometers of tracks and will set up minor, and rural access roads serving rural one resealing and two road patching units; and areas. The plan also calls for a comprehensive the expansion of the main road network into road maintenance program and includes meas- one of the country's most densely populated ures designed to improve traffic law enforce- and underdeveloped areas-but one with con- ment and road safety. Development of the siderable agricultural potential. In addition, highway sector in Kenya, and the Bank's in- studies related to a second highway project volvement in it, has reached the stage where and a possible integrated rural development sector, rather than project lending by the Bank project located in an area served by the pres- is considered the most desirable and appropri- ent IDA-supported road project will be under- ate means of helping the government achieve taken. its highway objectives. During the last 10 to A $6 million credit for a water supply proj- 15 years, Kenya's plans and activities in the ect in Lesotho will help finance the construc- highway sector have become large and com- tion of water supply systems in seven towns, plex. In nine Bank-assisted projects that pre- each of which is a regional population center ceded the sector loan, the Bank had become with importance as the site of regional institu- actively associated with virtually all aspects of tions such as hospitals, schools, and district these activities, including construction, main- administration centers. Six of the towns are in tenance, and rehabilitation of major and minor the region of the country where intensive agri- roads, and planning and administration, and culture, a prime objective of the national de- has assisted in strengthening and expanding velopment program, is possible; the seventh the sector institutions. From these projects, the town is located in an area with mineral poten- Bank's knowledge of the sector increased, and tial. As a result of the project, it is expected a close and continuing dialogue with the gov- that, by 1986, public water service will be pro- ernment was established. During the prepara- vided to about 20,000 new consumers who tion of the sector plan, the Bank was able to now rely on unprotected sources; in addition, participate in its overall formulation and to the reliability and quality of water now sup- comment on the broader sector issues. Mean- plied to about 21,000 consumers will be im- while, the government's institutional capacity proved. The project, furthermore, is providing Eastern A frica 37 funds for the employment of accounting con- significant coal deposits, and the geological sultants to design and assist in the implementa- structure of most of the country seems to pre- tion of an accounting system for the Water clude finding oil, except perhaps in a strip and Sewerage Branch of the Ministry of bordering Somalia in the northeast. The most Works; funds will also be made available to attractive alternative, therefore, appears to be identify staffing needs of the Branch, and to the geothermal potential that exists at Olkaria, train or arrange for the training of account- in the Rift valley near Lake Naivasha. ing staff. Investigations, surveys, and feasibility stu- dies of the site, financed by the United Nations Development Programme and the Bank, have Meeting Energy Needs indicated that available reserves may be suffi- cient for power development of up to 100 mW. Energy requirements in Kenya have grown However, before embarking on the generation rapidly in recent years, and are expected to project, further drilling is necessary to provide increase 8.5% yearly through 1985. The gov- firm information on the volume of steam out- ernment's policy is to supply, as far as possible, put and temperature and pressure variations. all increasing needs through the development A $9 million Bank loan approved during the of domestic generating capacity. Kenya's eco- year will help finance the drilling for steam pro- nomically exploitable hydroelectric potential duction wells from which the necessary firm is limited, however; surveys have shown no information will be obtained. 38 Western Africa Per capita Trend in Lending, 1966-79 Borrowers, Population() GNP 1977(2) fiscal 1977-79 (000) (US$) (US$ millions. Fiscal years.) -(00) Number of Operations Benin 3,229 200 Cameroon 7,882 340 - Central African Empire 1,867 250 Z Chad 4,221 130 - Congo, People's Republic 2.000 of the 1,423 490 Gambia, The 554 200 - Ghana 10,634 380 - Guinea 4,989 220 1,500 Guinea-Bissau 500 280 - Ivory Coast 7,463 690 Liberia 1,684 420 = = Mali 6,129 110 Mauritania 1,503 270 Niger 4,862 160 _ 450.1 5093 5(53 Nigeria 78,982 420 - (4 39. (5) (35) - Senegal 5,240 430 257.7 (29) Sierra Leone 3,210 190 - (23) Togo 2,350 300 - 85.6 Upper Volta 5,465 130 - ( 0) 0 NoTE: The 1977 estimates of GNP per capita presented 1966-70 1971-75 1976 1977 1978 1979 above are from the 1979 World Development Indicators. Annual Averages ('5 Estimates for mid-1977. (2) World Bank Atlas methodology, 1975-77 base period. The 23 countries(1) that form the Western This, of course, does not mean that the food Africa Region continue to present a highly and nutritional problems of the Region have diverse picture of economic and social condi- been solved, or that they are even beginning tions.(2) While in fiscal 1978, the external fac- to be brought under control on a long-term tors, which always loom large in deciding the basis. Of concern in this respect are an un- fate of these widely open economies, were checked population growth, the lack of a mostly unfavorable because of a general de- proven and economically efficient technical cline in commodity prices and poor weather "package" to sustain expansion of production in much of the Region, the same factors have in the rainfed agriculture of the Sudano- been more neutral and, in some respects, more Sahelian belt, the slow progress and high cost favorable in fiscal 1979 despite a continued of developing irrigation and, therefore, the decline in coffee prices. Thus, in their efforts to steer their economies away from turbu- lences that have so profoundly affected growth ('(During fiscal 1979, Cape Verde became the twenty-third and social progress since 197 3-74, the Western member, having joined the World Bank on November 20, Africa governments have at least been able to (')Thus, according to World Bank methodology, and based t, ~ ~ ~ ~ ~~~~~~~n on 1977 data, there is about the same relative differencee count on generally good crops and, except in between the gross national product (GNP) per capita of some limited areas of the Sahel, on adequate Mali and Ivory Coast, on the one hand, and between Ivory Coast and the United Kingdom on the other hand, food supplies. the ratio being approximately 1:7. Western A frica 39 continued dependence of the Region on good Adjustment in Nigeria weather conditions for an adequate supply of foodstuffs. (The cereal economies of the Sahel To a great extent, fiscal year 1979 was a remain particularly sensitive to atmospheric time of painful adjustment for Nigeria. Its conditions.) But there are encouraging indica- economy, of course, experienced a rather dra- tions in these countries of a growing aware- matic expansion following the petroleum boom ness on the part of governments that food pro- of 1973-75. Fiscal 1978, however, saw the ducers need proper price incentives and that boom reverse itself, as petroleum exports fell cereal stocks must be built up to dampen the by 25% in volume and by an additional 4% effects of normal variations in production.( i) in price. An important factor in its economic Assistance from the international community recovery during fiscal 1979 was the rapid re- will continue to be necessary to further this vival of oil exports due, first, to more competi- momentum and, in the case of bad weather, to tive pricing and, second, to the interruption of provide help as needed, oil supplies from Iran. The Nigerian govern- Despite a more stable international environ- ment also took a number of steps to bring ment, many countries have had difficulties in expenditures into line with revenues. Those restoring the degree of external and internal steps included a drastic reduction in public in- balance necessary to permit a resumption of vestments, the imposition and tighter enforce- growth. They have also found it difficult to ment of import restrictions, and borrowing generate more resources to satisfy their basic $750 million in the Eurodollar market. (In needs-child and maternal health, nutrition fiscal 1978, such borrowing amounted to basic education, and urban renewal-which, SI ,000 million.) These various factors con- according to all indicators, are met less well tributed substantially to a reduction in infla- in Western Africa than in most other regions tionary financing, to a check in the rapid rise of the developing world. Thus, in addition to in imports, and to a stabilization in the decline the long-term structural problems of wide- in foreign exchange reserves. Although mone- spread poverty, and the obstacles to the growth tary expansion was much smaller than in pre- of production, these countries are still strug- vious years, inflation continued at about 20%, gling with high inflation, strained public sector mainly due to the rise in the domestic prices finances, balance of pavments deficits, and of imported goods and oil products. At the mounting external debt of a nature and de- same time, the cuts in public expenditures gree unknown heretofore. The ensuing macro- directly affected the construction sector, par- economic management problems represent ticularly in urban areas, creating recessionary enormous challenges to the still young admin- conditions and threatening an increase in istrations of Western Africa. urban unemployment. GNP growth probably Not surprisingly, some countries have fared did not exceed 4%. better, for a variety of reasons, than others in Other countries, where financial imbalances fiscal 1979. Among the smaller countries, -whether associated with rapid overall growth Benin and The Gambia have maintained a or due to other causes-had become the main financial balance despite having limited re- obstacle to social progress, have mounted ser- sources. Niger, although severely stricken by ous rehabilitation programs, generally with In- the drought of the early 1970s, has not met ternational Monetary Fund (IMF) assistance. serious financial difficulties because of rapidly These include Gabon, Ghana, Mauritania, rising revenues from uranium exports; as a Senegal, and Togo. Because of the magnitude result, the government budget is now able to of the problems, however, or the long historv generate sizable surpluses for investment. The of imbalances, or both, recovery may be years challenge in Niger is to choose judiciously away. Ghana is a good illustration of the those policies that can raise, in a sustainable kind of drastic-and, therefore, socially costly fashion, the still very low standards of living -action that may become unavoidable in of the majority of the population. In the past, such circumstances. The rate of inflation had through fairly conservative policies, Cameroon reached 1] 6% in fiscal 1978, the gross domes- has managed to avoid acute domestic financial tic product (GDP) had registered hardly any problems although its external position appears to have weakened recently. Ivory Coast has managed to resume growth at its historical (3)The interstate committee to fight the drought (Comit6 inter-Etats de Lotte contre la Stcheresse-CILSS) of rate of about 7% a year and, at the same time, eight Sahelian countries, which was established in 1973 reduce ecessive evels ofpublic ivestment after the severe drought of the early ieventies. is gradu- reduce excessive levels of public investment aily becoming the forurn for intergovernmental discussion associated with the heavy borrowings of 1976 and study of policy decisions, which as so often in this Region, could not be effective if applied by each country and 1977. in isolation. 40 The Year's Activities, by Region growth, and the country's external reserve These policies should be geared to maintaining position had become extremely weak. Though or restoring the conditions under which exter- prices for Ghana's exports were high and ris- nal public and private capital inflows can be- ing, export volumes fell, and the country could come instrumental in accelerating growth and not gain the full benefits from this situation. promoting social progress. Most governments At the same time, the demand for imports was have well understood this and taken action. overwhelming, and the import licensing sys- The task however, is incomplete; these gov- tem came under severe strain. Threatened with ernments and the international community financial crisis, the government launched a must sustain their efforts. wide-ranging stabilization program. In August 1978, the cedi was devalued 58% in terms of Bank and IDA Activities the US dollar. This devaluation was soon fol- lowed by the imposition of a lean budget Bank and IDA lending to countries in the aimed at sharply reducing overall budget defi- Region reached $556 million in fiscal 1979. cits. Reserve ratios and interest rates were Thirty-five operations were approved, as com- raised to reduce the liquidity in the economy, pared with the same number of operations, and in March 1979, cedi currency notes then totaling $509 million, in fiscal 1978. Most of in circulation were demonetized to reduce the the growth was accounted for by an increase stock of money, dampen the inflation pres- in IDA lending-from $206 million in fiscal sures, and bolster the stabilization efforts. The 1978 to $239 million. About 40% of these full impact of these measures is still to be felt IDA funds were approved for projects in the but, in the meantime, there are encouraging poorest countries of the Region-projects that signs of donor responses to these Ghanaian are directed at improving production and self-help efforts. transportation in rural areas, at ameliorating The fiscal year just ended has been impor- the conditions of low-income urban residents, tant not so much because of any dramatic and at increasing the supply of trained man- external shock to which the economies of power. Guinea-Bissau, which became a mem- Western Africa have had to respond, but ber of the World Bank in 1977, received its rather because the absence of such disturb- first credit during the year; a roads project ances has underscored-in a number of coun- credit of $9 million will benefit some 22,000 tries-the decisive role of domestic policies. rural families by improving their access to Lending to Borrowers in Western Africa, by Sectors (USs millions. Fiscal years.) Annual Annual Average Average 1966-70 1971-75 1976 1977 1978 1979 Agriculture and rural development $15.0 $100.0 $ 92.2 $162.1 $195.4 $174.1 Education 5.6 28.8 28.3 14.8 23.8 30.0 Industrial development and finance(1) 1.2 3.6 26.6 11.2 72.0 39.6 Industry 6.0 0.1 60.0 - - - Nonproject - 16.0 - - - - Power 8.4 18.1 1.8 57.0 18.2 1.1 Technical assistance - - - 12.4 6.3 2.2 Telecommunications 0.2 12.5 5.2 - - - Tourism - 1.9 4.0 13.6 - 14.2 Transportation 47.6 69.2 232.0 77.0 136.4 168.1 Urban development - 1.6 - 44.0 8.2 12.0 Water supply and sewerage 1.7 5.8 - - 49.0 115.0 Total $85.6 $257.7 $450.1 $392.1 S509.3 $556.3 Of which: Bank $60.0 $167.4 $291.8 $259.1 $303.4 $317.1 IDA $25.6 $ 90.3 $158.3 $133.0 $205.9 $239.2 Details may not add to totals because of rounding. (O) Includes lending to development finance companies and small enterprises. Western Africa 41 Constructing a fishing vessel in Ghana. Bank and IDA lending ini stp port of fisheries development has aggregated $198.1 million; 24 % of that amount-$47.7 millioni-is accounzted for by the approval, in fiscal 1979, of fouir such projects. domestic markets and social services, and by ties, or on other infrastructure that will serve strengthening the operational capacity of local the Region's several landlocked countries. roads staff and public works personnel. New highway projects have been primarily for I'n terms of five-year averages, the fiscal road rehabilitation and maintenance rather 1 975-79 period resulted in a significant in- than new construction. Following transporta- crease in Bank and IDA lending to the Re- tion, projects for water supply and sewerage gaion; amounts for both types of lending were facilities ranked third in the overall fiscal more than double the averages for the period, 1975-79 sectoral distribution. fiscal 1970-74. In those countries eligible to This marked increase in lending for water receive credits, the Region's anntial average supply and sewerage was due to the fiscal 1 979 per capita share of IDA fuinds rose from $1.35 approval Of fouir projects totaling $ 1 15 million to $2.60 from one five-year period to the other. ---a total that exceeded all previous lending. Sectoral trends show that increasing emphasis for this scector in the Region. These projects is being placed on agriculture and ruiral de- constituted the first Bank involvemient in the velopment, a sector whose share increased water supply and sewerage sector in Liberia, from 20% between 1970 and 1974 to 41% Guinea, Seneg-al. andi Nigeria. In the first two between 1975 and 1979. Agricultuire and countries, abouit 250,000 people, among the rural development has thus become the Re- poorer residents of their capital cities, will be gion's leading sector, replacing transportation, given better access to safe water: in addition, whose share fell from 40% to 27%. More- the incidence of waterborne diseases will be over, within the transportation sector, a grow- reducedl. In Senegal, an engineering loan will ing percentage of recent projects has concen- cover all of the StLidies necessarv to ulnder-take trated on feeder and other ruiral roads that a priority project to rehabilitate andl extendc will benefit the countries' agricuiltutral majori- water supply systems in I11 secondary centers 42 The Year's Activities, by Region of the country. The $92 million loan to Nigeria strengthening training institutes or centers de- was the largest single Bank loan ever approved signed to build up management capability at for a country in the Western Africa Region. different levels in the rural development This water supply project will be implemented sector. In Senegal, the construction of the in Kaduna, a major industrial center in National College of Agriculture and a Man- northern Nigeria with a population of about agement Training Institute will help meet the 600,000. The project will particularly benefit country's critical need for qualified technical 400,000 mostly low-income consumers who and managerial manpower through the gradu- are poorly served at present. ation of about 40 agriculturalists and 40 busi- Although agriculture and rural develop- ness managers a year. ment has become the Region's leading sector, In Nigeria, the establishment of an Agri- its share of fiscal 1979 lending (31 %) was cultural and Rural Management Training lower than that of previous years, reflecting Institute will help meet the need to strengthen the particular mix of projects approved during managerial capacity in the agricultural and the year. Thirteen projects were approved- rural sector where the Nigerian government about the same number as in fiscal years 1977 plans significant investments. The Institute will and 1978-but for several reasons, they cost offer courses for staff in middle management less. Special emphases on technical assistance and second line supervisory positions, and, in and training for the agricultural sector, con- particular, will instruct trainers from agricul- cern for smallholder production, and the tural and rural administrative organizations. Bank's new involvement in lending to the for- Annual enrollment at the Institute is expected estry sector all necessitated an evolving series to be about 560. of sometimes small pilot projects. On a different level, in Togo, a technical The particular mix of fiscal 1979 projects assistance project (assisted by an IDA credit also significantly affected the amount of of $2.2 million) will provide the Ministry of co-financing secured for regional projects- Planning with two permanent advisers on about $112 million as compared with $185 macroeconomic management and project million in fiscal 1978.(4) This decline does not analysis, together with provision for short-term indicate a lessening of the Region's present or consultancies for special studies (agricultural future co-financing efforts. It simply reflects pricing, for example). the sectoral blend of fiscal 1979 lending that In smallholder agriculture, a rubber project, included a large number of smaller projects assisted by a $7.6 million Bank loan, in Ivory and excluded large industrial, port, and power Coast, and benefiting some 1,000 farming projects that traditionally absorb large amounts families, will support a government program of co-financing. Based on present projections, to diversify the rural economy in the south- co-financing in the Region is expected to play eastern region. The project includes the plant- an important role in fiscal 1980. ing of rubber trees for smallholders on 3,000 Each co-financed project attracted an aver- hectares of land manually cleared by partici- age of about $8 million in co-financing during pating farmers. Another 2,000 hectares will be the year, compared with about SI I million in planted as a government-owned nucleus indus- fiscal 1978 and $25 million in fiscal 1977. trial rubber estate that will be integrated with During the year, 13 agencies participated in an additional 500 hectares of smallholdings. co-financing Bank-supported and IDA-sup- Training and extension services for participat- ported projects. The most important contribu- ing farmers will be provided. tors continued to be the industrialized countries During fiscal 1979, the Bank broadened its of Europe and North America and the African geographic intervention in a relatively new Development Bank/Fund. subsector-forestry: a total of $59.5 million was extended to Ivory Coast, Liberia, Mali, Training and Technical Assistance and Nigeria for this purpose. In all four coun- tries, the primary project objectives are to set Sustained growth of agricultural production up a proper framework for forestry develop- is critically dependent on qualified managers ment and management in very different insti- and extension specialists, skills that are still in tutional and ecological contexts, and to ensure short supply. To assist in this area, education that the people participate in, and benefit from, and training for rural development received special attention during the year, as an IDA credit of $22 million for Senegal and a Bank loan of $9 million to Nigeria were approved. (')Co-financing data have been compiled from World Bank reports of projects at the time of their Board approval, Both projects provide for establishing or and do not reflect changes in amounts since that time. Western Africa 43 the development of forest resources. The Ni- the devastating effects of the Sahelian drought. geria project aims at establishing over 24,000 The DRF projects were a regional operation hectares of fast-growing gmelina (tropical whereby IDA, under one project, extended six hardwood) and pine plantations for the pro- lines of credit, totaling $14 million, to six duction of pulpwood and timber in Ondo, Sahelian countries (Chad, Mali, Mauritania, Ogun, and Anambra states. The Bank loan will Niger, Senegal, and Upper Volta). In each finance $31 million out of a total cost of about country, a number of small operations was $80 million. In Ivory Coast, a project, assisted aimed at restoring the productive basis in by an $18 million Bank loan, involves a plan- drought-afflicted areas through the implemen- tation development program of 68,000 hec- tation of such subprojects as small-scale irri- tares of hardwood over five years in logged gation, reforestation, animal health measures, areas; it also includes technical assistance to rural water supply, and administrative and strengthen the planning and operational serv- technical support to key government services. ices in the forestry sector. As a result of the Due to IDA's willingness to waive normal project, the government should benefit from preparation procedures, only a few of the sub- increased revenues from forest taxes and im- projects were identified and prepared at ap- proved management capability in its forest praisal. Unidentified subprojects were selected investment programs. by the borrowers on the basis of criteria agreed upon-fast generation of benefits, the reaching AssistingSmall-scale African Enterprises of a large number of people in the poorest areas, and a readiness on the part of benefici- During the past year, the Bank sought to aries to contribute through self-help and user promote the development of small-scale charges. Most of the projects were completed African-owned and African-operated enter- in fiscal 1977 and 1978. Examples of sub- prises, both in industry and agriculture, projects executed are: 320 wells for drinking through institution building and the provision water in Senegal and Upper Volta; equipment of finance and technical assistance. In Ivory for, and training of two well maintenance units Coast, a $12.6 million Bank loan to the Credit in Chad; rehabilitation or construction of small de la C6te d'Ivoire (CCI) was approved. It irrigation schemes on 2,200 hectares in was the first "repeater" operation in the Re- Mali; conservation of 6,200 hectares of gum gion of what had been an essentially experi- arabic stands in Niger; clearance of 610 kilo- mental project (providing finance to assist meters of firebreaks in Senegal's forest areas; small enterprises) in this field. The first line of and repairs on 336 kilometers of feeder roads credit benefited more than 100 small Ivorian in Upper Volta. entrepreneurs. The new loan will provide long- IDA and the six borrowing countries learned term financing for Ivorian-owned small and from the DRF project that small projects could medium-scale enterprises and artisans' cooper- be prepared and implemented with little assis- atives.('" The training of CC[ staff will also be tance by specialized government services. This financed. An $8 million IDA credit to Mauri- experience was useful in the preparation of tania will help finance an innovative project subsequent projects, such as the Rural Devel- benefiting three sectors: small and medium- opment Fund and Rural Projects Fund oper- scale industries, artisans, and irrigated small- ations that now exist in several of the Sahelian scale agriculture under the control of village countries. cooperatives. Expanded productive employ- ment (about 500 new jobs), a dramatic in- crease in carpet production, and foreign exchange savings are expected to result from the subloans that are to be sanctioned by three principal financial intermediaries. The agricul- tural component should increase paddy pro- duction by about 3,000 tons a year, and may create about 70 additional days of work annu- ally for each of some 1,800 small farmers. Drought Relief Project Completed In fiscal 1979, the Bank closed out most of the Drought Relief Fund (DRF) projects that ')A "small" business in the Ivorian context is one with were initiated in fiscal 1974 to help overcome total investments of $340,000 or less. 44 East Asia and Pacific Trend in Lending, 1966-79 (US$ millions. Fiscal years.) (00) Number of Operations Per capita - Borrowers, Population(5) GNP 1977(2) ) 2,130.0 _ fiscal 1977-79 (000) (US$) _ (40) Fiji 589 1,210 2,000 - Indonesia 133,505 300 _ 1,726.2 Korea, Republic of 35,953 820 - (37) Lao People's Democratic - 1,458.5 1,475.0 Republic 3,201 90 17s00 (35) (36) Malaysia 12,961 930 - Papua New Guinea 2,857 490 Philippines 44,473 450 Thailand 43,778 420 1L00o Viet Nam 50,647 160 ~~- - 588.2- NoTm: The 1977 estimates of GNP per capita presented -512 above are from the 1979 World Development Indicators. - (24) ('5 Estimates for mid-1977. 500 (2) World Bank Atlas methodology, 1975-77 base period. - 249.3 (13) 1966-70 1971-75 1976 1977 1978 1979 Annual Averages In fiscal 1979, the economic performance and, last but not least, generally sound and of the Bank's major East Asian borrowers- pragmatic economic management. Indonesia, Korea, Malaysia, the Philippines, An important influence on the longer-term and Thailand-continued to build on its im- prospects of these countries is their falling fer- pressive record of the last 15 years. Per capita tility rates. They all have active population gross national product (GNP) growth rates policies; in addition, it is likely that the mod- were again substantially higher than the aver- ernization process is influencing attitudes age for all developing countries. According to towards childbearing. While the effect of lower the main indicators of welfare, past GNP fertility is partially compensated by lower mor- growth has been accompanied by broad ad- tality (especially among young children), the vances in the satisfaction of basic needs in net effect is that overall population growth health, nutrition, education, and other serv- rates have started to fall, in some cases rapidly. ices. This record of economic and social prog- Because of the inevitable time lag, however, ress can be attributed to a number of factors: the growth in the working-age population has political stability, generally strong commit- still been increasing at a rate well over 3% a ment to development, a large increase in year in all the major countries except Indo- investment levels, high priority given to the nesia, where it is about one-fourth lower. agriculture and export sectors, an unprece- The Bank's analysis of the Region's major dentedly rapid increase in international trade economic problems over the last several years East Asia and Pacific 45 has concentrated on the relationships between alized imports which, on the one hand, has economic growth, employment, and poverty. helped to combat inflation by increasing the Especially in countries where land resources availability of goods in the market, and, on the are scarce, it appears that a direct attack on other hand, through the reemergence of a bal- poverty must be embedded in a general devel- ance of payments deficit on current account, opment strategy aimed at a rapid increase in has contributed to a new inflow of foreign employment opportunities. In such a strategy, capital to help finance these investments. Over available labor can initially be more fully util- the coming years, the country can productively ized, thus increasing household incomes; this utilize and service gross inflows of foreign re- has already occurred in most of the Region's sources in the amount of $3,000 million to countries. Eventually, as the labor market $4,000 million annually. tightens, the least productive activities are Malaysia is the most fortunate country in gradually eliminated, and the real wage rate is the Region in terms of land resources still forced up; generally, this second stage has not available, although the productivity of those yet been reached. As a consequence, while resources is limited. Traditionally, the country rapid overall economic expansion has had a has relied heavily on exports of rubber, and significant impact on the economic position of it was hard hit when rubber prices declined the underprivileged in the Region, the distri- structurally in the 1960s and the first years of bution of the benefits of growth has remained the present decade as advances were made in generally unequal. Such unequal distribution the efficiency of synthetics. While Malaysia is also occurring between regions within a was successful in increasing productivity in number of countries, where, most notably, rubber to counter the adverse trend in prices, areas dependent on rainfed agriculture often the net result was a delay in the resolution of lag behind. This situation has led the Bank to the country's poverty problems. As a result of examine regional issues in more depth. active government policies, and aided by the Furthermore, now that the necessary financial international commodity boom, the situation and economic adjustments to the large year-to- started to improve appreciably during the pe- year international economic fluctuations in- riod, 1972-74, as exports recovered and indus- duced by the structural increase in oil prices trial investment, production, and employment and the international recession have been grew rapidly. A subsequent lull in private in- made, and the structural shifts in terms of vestment (especially in manufacturing), to- trade have manifested themselves more clearly, gether with increased oil revenues, led to sub- it has become possible to reassess the capital stantial current account surpluses in 1976 and requirements of the major East Asian coun- 1977. Since then, private investment in some tries as they relate to the need for a rapid sectors has been recovering, and the govern- expansion in employment and incomes. ment has stepped up its investments in projects Among the five major borrowers in the designed to reduce poverty (the field of con- Region, Korea has the fastest growing per centration for the Bank). As a result of these capita income. Though cultivable land was factors, as well as favorable export prices, the fully utilized long ago, the country has been incidence of poverty is now being reduced extremely successful in developing an export- steadily. Poor weather and recovering invest- oriented light industry. Not only has economic ments eliminated Malaysia's current account growth been rapid, its structure has been such surplus in 1978; in the future, moderate capital that many jobs have been created, thus en- inflows will be necessary to amortize debt and abling the benefits of development to be well build up reserves in line with imports. distributed. Large balance of payment deficits In Thailand, existing land reserves have in the early 1970s, as well as their recurrence been rapidly utilized during the last 15 years as in the difficult years of 1974 and 1975, have the country aggressively diversified into new been overcome as exports soared. In more re- agricultural products (maize, tapioca, and cent years, economic growth has been well sugar). Under the influence, also, of increased over 10% a year, and investments have in- industrialization, the incidence of poverty is creased sharply. These investments have re- estimated to have lessened from well over one- flected the need for increased productive half to about one-third of the population dur- capacity, for large outlays in social and eco- ing the 15-year period. At present, poverty is nomic infrastructure as the country modern- largely concentrated in the distant areas of the izes and urbanizes rapidly, and to achieve northeastern and northern regions of the coun- structural changes so that the country can take try. Land reserves are now dwindling rapidly, advantage of shifting patterns of comparative however; as a result, the country's overall eco- advantage. The government has recently liber- nomic growth rate has begun to be affected. 46 The Year's Activities, by Region At the same time, Thailand's balance of pay- Thailand, the Philippines is likely to face sub- ments has swung into substantial deficit in the stantial current account deficits over the com- aftermath of the economic events of the mid- ing years as a result of a structural terms of 1970s. Fortunately, Thailand has low debt- trade loss. Since the country already has a service liabilities; it can, therefore, borrow sub- substantial external debt, careful balance of stantial amounts over the coming years as it payments management will continue to be es- makes the transition to a more productivity- sential to support its export-oriented and oriented growth strategy in agriculture while employment-oriented strategy, especially in increasing labor absorption in the other sectors. manufacturing. In the Philippines, land became scarce Indonesia, the largest and most complex, but earlier than in Thailand. This scarcity, together also one of the poorest countries in the Region, with the skewed distribution of land holdings, has made large strides forward since the eco- has led to a formidable problem of rural pov- nomic dislocation of the mid-1960s. There is erty. The incidence of poverty has gradually no doubt that a large majority of the popula- spilled over into urban areas, as the manufac- tion has benefited from the rapid economic turing sector failed to generate job opportuni- growth that has occurred, partly as a result of ties sufficient to meet the needs of rural increased oil revenues. Still, large problems emigrants. The government has been success- remain, of which the uneven distribution of ful in accelerating economic growth in the the population, dependence on imports of 1970s through increasing public investment food, a low level of industrial development, and improving agricultural performance by and difficult transportation and communica- offering increased incentives to farmers, ex- tion problems in the far-flung archipelago are panding irrigation and other inputs, and by only a few. In an attempt to make its own making more available high-yielding varieties nonoil (especially manufacturing) sectors of seeds. A land reform program has also been more competitive, the government has recently initiated that has benefited tenant farmers in devalued the rupiah. The Bank is assisting the rice-growing and maize-growing areas; steps government over a wide front to help alleviate are being taken to improve supporting services the country's problems. While the need for for them. Since 1970, the growth of manufac- investment capital is large, Indonesia is tured exports has also been impressive, albeit watching its debt service carefully, and the size from what was initially a small base. As in of the foreign inflows it can absorb is, there- Lending to Borrowers in East Asia and Pacific, by Sectors (US$ millions. Fiscal years.) Annual Annual Average Average 1966-70(') 1971-75(l) 1976 1977 1978 1979 Agriculture and rural development $ 58.1 $129.5 $ 470.0 $ 522.5 $ 794.2 $ 566.4 Education 7.7 40.2 93.0 83.0 40.0 164.0 Energy - - - _ 4.9 Industrial development and finance(2) 22.6 60.0 160.0 232.5 330.0 175.0 Industry 6.0 33.3 70.0 80.0 14.8 29.0 Nonproject - 20.0 75.0 - - Population and nutrition - 8.6 - 37.5 33.1 57.0 Power 59.1 95.2 125.0 196.0 259.0 255.0 Technical assistance 0.4 2.6 13.0 - - 10.0 Telecommunications 8.5 16.1 31.0 - - 90.0 Tourism - 8.2 - - - - Transportation 85.1 139.3 342.0 248.0 246.5 389.7 Urban development - 11.2 58.0 52.5 8.6 102.0 Water supply and sewerage 1.9 24.0 21.5 23.0 - 287.0 Total $249.4 $588.2 $1,458.5 $1,475.0 $1,726.2 $2,130.0 Of which: Bank $212.0 $475.1 $1,458.5 $1,452.0 $1,586.9 $1,791.6 IDA $ 37.4 $113.1 $ - $ 23.0 $ 139.3 $ 338.4 (l) Includes lending to Japan and/or New Zealand which are considered past borrowers. (2) Includes lending to development finance companies and small enterprises. East Asia and Pacific 47 7~~~~~~~~~~~~~~~ 'fJ~' ~AWV ~" Twelve loans and credits-the latest was approved in fiscal 1979-have supported Indonesia's irrigation subsector. The emphasis of these projects has been on the rehabilitation of systems built during the country's colonial period. fore, closely linked to the borrowing terms it Region will need, and will be able to utilize, can obtain. large inflows of foreign capital. In gross terms, The economic conditions in the smaller annual inflows will probably exceed the Pacific island countries have recently been $10,000 million mark well before 1985. While fairly favorable. The growth rate of Papua New most inflows will have to come from other Guinea's economy has picked up in the last official sources and from the private sector, the two years after several years of slow growth. Bank can continue to play a significant role in The main sources of the recent growth have fulfilling the Region's capital needs on appro- been strong levels of private investment and priate terms. expanding agricultural output. In particular, exports of coffee reached record volumes dur- Bank and IDA Lending ing 1978. In Fiji, Western Samoa, and the Solomon Islands. economic growth accelerated Lending by the World Bank- to countries in during the year. Increased export receipts, due the Region during fiscal year 1979 showed a to favorable prices for major commodities, as 23% increase over the previouis year. Eight well as higher volume, and public sector IDA credits made up $338 million of the total spending, which reflected improved flows of of $2,130 million. Twenty-four of the 40 proj- both foreign grants and loans, were the main ects approved followed earlier Bank invest- sources of growth. Tourism growth was also ments covering a broad range of sectors, such substantial. as irrigation. rural development, urban re- In summary, economic prospects for the newal, and water supply. While most of the Region remain promising. Given continued lending was for projects in the five maj'or large additions to its labor force, the impera- countries, Viet Nam received its first IDA tives for growth and employment creation, credit (for irrigation), and rural development however, will also remain strong. Thus, the projects were also approved for Laos and 48 The Year's Activities, by Region Papua New Guinea. Lending for agriculture 500,000 residents of Surabaya will gain access totaled $566.4 million; the 14 projects in that to acceptable solid waste disposal services by sector continued to have diverse objectives and 1985. Since flooding of karn-pungs is also a to help finance a broad range of rural infra- serious problem in Surabaya, the project will structure-roads, schools, and health facili- finance the dredging and desilting of about ties, for instance-in addition to credit and nine kilometers of main drainage canals, as more direct agricultural inputs. Infrastructure well as the rehabilitation of pumping stations. projects-transportation, power, telecommuni- Community health workers will be trained to cations, and water supply-made up 48% of advise kampung residents on environmental the lending ($1,022 million), while lending for hygiene, maternal and child health care, im- education ($164 million) increased by 76% munization, and nutrition. over the previous high, set in fiscal 1976. Lend- The Bangkok traffic management project, ing for population increased to $57 million while quite different in emphasis, also faces up from $33 million in fiscal 1978 with the ap- to serious problems of urban living conditions. proval of two projects. Two small projects-a Bangkok, a city of about 5 million people, technical assistance credit in Indonesia and an suffers from substantial traffic congestion that engineering loan for a natural gas pipeline seriously impairs the conduct of public and project in Thailand-will lay the groundwork private business, particularly in the city center for substantial future investment opportunities. where there exists a mixture of residential, in- Funds committed under co-financing ar- dustrial, commercial, and government build- rangements with the Bank and IDA reached ings. The government realizes that not only $497 million, or 126% above last year's level, would investment in urban expressways and and 83% above the 1976-78 average.(l) rail systems be prohibitively expensive, it prob- Each co-financed project attracted an aver- ably would not be effective. The project, for age of $38 million in co-financing during the which a Bank loan of $16 million was made, year, compared with about $22 million in fiscal supports a number of policy measures, im- 1978 and $41 million in fiscal 1977. provements in traffic management, and low- During the year, 10 official multilateral and cost infrastructure. In consultation with the bilateral agencies participated in co-financing Bank, the government will introduce area road Bank-supported and IDA-supported projects. pricing, improved bus and minibus services, parking controls, and staggered working hours -all to be supported by improved signaling, USrban Development road signs and one-way routing, pedestrian The needs of the poor in the large and ex- overpasses at seven critical intersections, and panding cities of the Region are great. The 10 short road links that will increase the ca- financing of urban infrastructure and afford- pacity of the main road system. The project able shelter for low-income families has been will also provide equipment and vehicles for a regular feature of recent Bank lending. Two a reorganized and expanded traffic police projects in fiscal 1979 seek to ameliorate ur- force. The benefits of the project will accrue ban living conditions in five large cities in to all classes of road users except certain pri- Indonesia and in Bangkok. Indonesia's urban vate car travelers; major beneficiaries will be areas are severely deficient in essential infra- those who use the city's 4,700 buses and structure. Less than one-third of the popu- 10,000 minibuses. lation has reasonable access to safe drinking water, and one-quarter has no sanitation facili- ties. Building upon the success of the Kampung Meeting Smallholder Needs Improvement Program (KIP) initiated by the The Bank continues to diversify its lending Jakarta city government in 1969, and sup- to the rural sector, and projects approved in ported by two previous Bank loans, a third fiscal 1979 in Papua New Guinea, Indonesia, urban project in Indonesia, assisted by a $54 thePhilippines,andThailandprovide examples million Bank loan, will help to finance roads; of attempts to meet the needs of small farmers. footpaths; and drainage, water supply, sanita- Basic needs such as food, education, health, tion, and school and health facilities in low- clothing, and shelter are less adequately met income neighborhoods in five cities. This up- in isolated Southern Highlands province than grading of infrastructure is expected to benefit almost any other region of Papua New Guinea. 750,000 people. In addition, through the fi- The government's strategy for the rural sector nancing of the necessary infrastructure for the collection, transportation, and disposal of solid (')Co-financing data have been compiled from World Bank reports of projects at the time of their Board approval, waste, about 1.5 million people in Jakarta and and do not reflect changes in amounts since that time. East Asia and Pacific 49 aims at providing more equitable income dis- Though most farmers in the Philippines are tribution, better access to health care and edu- already in the cash economy, they need in- cation, and satisfaction of other basic needs. creased assistance to improve their living The productive basis of this strategy will con- standards. Many tenant farmers have become sist of the development of farming systems owner-cultivators under the 1972 agrarian re- that increase or sustain subsistence production, form legislation, but not a few of them have as well as provide increased earnings through been unable to take full advantage of their cash crop farming. Accordingly, a rural devel- new status, as a number of early credit pro- opment project, for which an IDA credit of grams were not as successful as they might $20 million was made, will finance field trials have been due to inadequate technical and and demonstrations of new crops, varieties, supervisory support. A small farmer develop- and husbandry methods to enhance existing ment project, for which a Bank loan of $16.5 subsistence farming techniques. The project million was made. supports the coordinated will also help support the development of cof- delivery, through the Land Bank of the Phil- fee, tea, cardamom, and mulberry-the only ippines, of technical assistance and improved cash crops that have a potential for expansion infrastructure and credit to about 28,000 bene- in this area of high rainfall and poor soils. ficiaries of the agrarian reform program. The Health services in the province will be im- project provides production credit for critical proved by providing facilities for the training inputs such as fertilizers, agrochemicals, and of nurses and health field staff and by con- seeds, as well as a modest expansion of mar- structing three health subcenters in two dis- keting credit to cooperatives and private tricts that have particularly inadequate facili- dealers handling small farmers' produce. Since ties. The project will upgrade the province's the shortage of labor is serious during land existing 138 kilometers of main roads and preparation, planting, and harvesting seasons, improve about 900 kilometers of feeder roads medium-term loans will help finance the pur- to help reduce the isolation of people scattered chase of small power tillers. The purchase of in many small villages. The construction of rice threshers. driers, and light trucks will also two new high schools, the provision of teach- be financed to help reduce losses incurred in ing materials and transport facilities for non- drying, threshing, and transporting produce. formal education staff, and training courses for Because diversification from rice is needed in villagers are all aimed at correcting deficien- rainfed and inadequately irrigated areas, term cies in educational opportunities. credit will be made available for backyard pig- In Indonesia, the Bank assisted a second geries, poultry, and beef cattle, as well as for transmigration project that will launch a land cottage industries such as those that deal in development program along the trans-Suma- embroidery, garments, and fibercraft. The tera highway by resettling about 30,000 fam- project will also help finance the construction ilies from impoverished and ecologically of local feeder roads, flood control structures, threatened areas of Java and Bali (90% of the and the rehabilitation of small, scattered irri- families), as well as from Sumatera. Addition- gation systems that are outside the scope of ally, the conditions of, and services provided to large government development schemes. The 4.000 transmigrant families who were recently number of Land Bank staff responsible for settled in the same area will be improved. financial supervision and the coordination of The Indonesian transmigration program is other government advisory agencies in the field one of the largest organized resettlement ef- will be increased to a level of one coordinator forts in the world. Since 1905, government for each 300 to 500 farmers. programs have transferred nearly I million set- In Thailand, the northern agricultural de- tlers to relatively underutilized islands-par- velopment project supports government pro- ticularly Sumatera. Transmigration is a central grams to alleviate acute poverty, low yields, feature of the government's third Five-Year and degradation of natural resources in agri- (1979-84) Development Plan. cultural areas that are largely rainfed. Thirty A first Bank-assisted transmigration project thousand hectares of upland. farmed by shift- was approved in fiscal 1977; the fiscal 1979 ing cultivation methods in eight provinces in project, assisted by a S90 million Bank loan the northern region, will be brought under and a $67 million IDA credit, is designed to stable cultivation using land clearing, conser- create new farms and open up upland food vation, and cultivation techniques tested over crop production on 36.000 hectares and in- the past nine years in an Australian-assisted crease crop production on another 4.800 hec- pilot project. The project also will assist about tares of land. Some 170.000 people are to 6,500 hill tribe families living in remote high- benefit directly from the project. land areas by financing 160 very small irriga- 50 The Year's Activities, by Region tion schemes and bench terracing for rainfed The second component-the Research De- crops such as soybeans and coffee. Rehabilita- velopment and Engineering Program-will tion of forest areas degraded by shifting finance selected development projects, the costs agriculture will be started when hill tribe and subsequent benefits of which the Institute farmers develop a permanent agricultural base will share with private industry. The program in the valleys. Simple school buildings for pri- will aim at upgrading a significant segment of mary and adult education and health posts will the electronics industry and will, in particular, be established in hill tribe villages. In both encourage cooperative efforts among Korean upland and highland areas, village woodlots firms. will be established to provide firewood and timber previously collected in the areas that Agricultural Education are to be developed for stable agriculture. The project, supported by a$25 million IDA credit, A second education project in Indonesia, will also assist the government's efforts to begun in fiscal 1972, and completed in the strengthen provincial planning capability and past year, made a major contribution to im- will provide funds for the testing of technology proving the quality of education at 14 secon- packages in rainfed areas and for the prepara- dary agricultural schools, the main source for tion of further programs and projects that are new extension agents. The success of the proj- responsive to the needs of the rural poor. ect and its relevance to national agricultural priorities encouraged the government to seek Bank support for a follow-up project-ap- A New Field proved during the past fiscal year-that will finance institutions in additional provinces Of the four loans made in support of the and introduce new training programs in the industrial sector in fiscal 1979, the Korea elec- fields of animal husbandry, fisheries, forestry, tronics research development and engineering and rural home improvement. project represents a new field for Bank finance. The proportion of students successfully The project is designed to stimulate and sup- completing the three-year course at the second port growth in the Korean electronics industry education project-supported schools has risen by developing local capabilities in semiconduc- sharply, and graduates have had no difficulty tors and digital systems. To succeed in this in securing jobs. The multipurpose curriculum, field, however, Korea will have to concen- with its emphasis on practical training and trate initially on a few technologies that will food crops, has proven to be appropriate at a allow it to upgrade the design and reliability time when agricultural development demands of its products, and, simultaneously, to provide an increasing number of quality extension the core around which to build future techno- workers to accelerate food crop production. logical capabilities. This effort requires sub- The project, aided by a $6.3 million IDA stantial design and manufacturing know-how, credit, also financed improvements at 13 in- as well as expensive technological infrastruc- service training centers for agricultural exten- ture that would be beyond the individual sion workers, two factory training centers, and capabilities and resources of Korean or joint- the national agricultural training institute. The venture firms. agency in the Agriculture Ministry that was The project, supported by a $29 million established under the project, and which man- Bank loan, consists of two components. The aged the project, demonstrated its capability first-the development of the Korea Institute to upgrade and maintain satisfactory stand- of Electronics Technology (KIET)-comprises ards of agricultural training in widely scattered specialized capital-intensive common facilities institutions. Technical assistance specialists providing services that cannot be economically from the Food and Agriculture Organization supplied by individual firms. These facilities of the United Nations and from the Nether- will also be used to train engineers and facili- lands were instrumental in improving teaching tate the transfer of manufacturing know-how. methods at the project schools. 51 South Asia Trend in Lending, 1966-79 (US$ millions. Fiscal years.) (00) Number of Operations Per capita - - Borrowers, Population(') GNP 1977(') fiscal 1977-79 (000) (US$) - 2,077.0- (36) - Bangladesh 81,219 90 0Oo0 Burma 31,512 140 - India 631,726 150 - 1,648.9 - Maldives 140 90 - (36) Nepal 13,322 110 i7iib 1,349.2 Pakistan 74,905 190 - (27) 1,164.2 Sri Lanka 14,097 200 - (32) = NOTE: The 1977 estimates of GNP per capita presented ygO above are from the 1979 World Development Indicators. (') Estimates for mid-1977. - 682.7 (2) World Bank Atlas methodology, 1975-77 base period. - (17) 500- 298.7 - (11)= 1966-70 1971-75 1976 1977 1978 1979 Annual Averages In large parts of South Asia, economic sues. These broad findings, of course, need trends were favorable in fiscal 1979. The im- qualification in the light of differing trends in provement in economic conditions in much of individual countries. the Region, India in particular, has now con- Recent improvements should not obscure tinued since fiscal 1976. The gains in output of the fact that South Asia, the world's most agriculture, still the most important sector by populous Region, continues to face massive far, were the result of a combination of gen- development problems. Despite notable erally favorable weather and-to an extent achievements over the past 30 years through- as yet difficult to quantify-of structural im- out most of the Region, per capita incomes provements, such as irrigation and extension, have risen only modestly because of rapid that have raised basic production levels. Con- population growth. The Region today is still tinued expansion of industry and exports and coping with massive and extreme poverty; at rapidly rising workers'remittances from abroad least 350 million people, of whom some 250 have, in addition, contributed to more abun- million live in India alone, continue to be dant resources, including substantial increases deprived of minimum necessities in terms of in reserves of food and foreign exchange. nutrition, unpolluted water, clothing, and shel- Consequently, it has been possible to divert ter. For this segment of the population in attention from short-term problems and to particular, health conditions have remained focus increasingly on more fundamental is- poor, life expectancy short, literacy and voca- 52 The Year's Activities, by Region tional skills low or absent, and unemployment early years of independence when relief, re- or underemployment high. Improvements are habilitation, and stabilization were unavoid- only possible through prolonged and sustained ably the paramount concerns of Bangladesh's development efforts on an expanding scale. policy makers. From fiscal 1976 until recently, Key priorities for most countries of the Region the country did not experience major floods, are to lower the population growth rate and to droughts, or cyclones. In the second half of develop rural areas through productivity in- fiscal 1979, however, drought conditions ad- creases in agriculture and the creation of rural versely affected agriculture. Growth in real nonfarm employment.(1) gross national product (GNP) in fiscal 1979 For the Indian economy, fiscal 1979 was was well below the rate reached in fiscal 1978 another prosperous year. Overall economic -mainly because of less favorable weather growth is tentatively estimated at 3% to 4%, that had an adverse effect on foodgrain output. after 7% in the year before. Four consecutive Domestic food stocks as of mid- 1979 were well years of healthy growth have now occurred, below target, and the food gap remained in ex- accompanied by a significant rise in per capita cess of 1.5 million tons for fiscal 1979. The low incomes. Total savings and fixed investments stock position led the government to negotiate have also increased in relation to income. Even large additional food imports for delivery in though agricultural production had reached the latter half of calendar year 1 979. record levels in fiscal 1978, and despite wide- Industrial production, although as yet only spread flooding, output in fiscal 1979 rose by 8% of gross domestic product (GDP), rose another 1.5% to 2%, and foodgrain produc- about 10%, stimulated by a revival of con- tion reached an all-time high of more than sumer denmand and a further liberalization of 126 million tons. The high output levels imports. The general supply of nonfood items, achieved since fiscal 1976 owe much to favor- both producer and consumer goods, also im- able monsoons. But there are growing indi- proved considerably in the last two years in cations that the "floor" level of foodgrain crops the wake of stepped-up imports. Despite this, achievable with average weather has moved inflation has again become a problem. The cost up substantially due to increased irrigation, of living rose by 15% in fiscal 1978 and by better provision of other inputs (especially perhaps even more in fiscal 1979, reflecting fertilizer), and improved extension services. high rice prices, budgetary deficits, and more Growth of industrial output is estimated at 7% liberal credit for the private sector, including to 8% after a generally sluggish performance agriculture. in fiscal 1978. This increase occurred despite Because of the country's weak economic recurring shortages of basic inputs, such as structure, including low domestic savings, cap- steel and coal, and inadequate supporting in- ital requirements must still he met largely by frastructure, such as a lack of railway wagons external assistance; foreign aid finances 75%o and a shortage of electric power. to 80% of an as yet modest level of public India's external payments position remained investment. Indications are that the greater strong, to which a continuing large inflow of development effort undertaken for fiscal year workers' remittances contributed. With gross 1979 required a rise in net foreign aid by over external reserves of over $7,000 million, a buf- $200 million, to surpass $ 1,000 million. fer stock of foodgrains approaching 12 million Pakistan's GDP rose by about 6% in real tons, and only mild inflation (reflecting ade- terms during fiscal 1978 after several years of quate supplies and prudent monetary policy), low growth. Available evidence suggests con- the country has been able to step up its long- tinued expansion during fiscal 1979. There has term development efforts through a larger been some revival, stimulated by new incen- utilization of accumulated reserves, primarily tives and an upturn in world markets, in the for investment purposes. There are indica- important textile industrv. Growth has been tions of a growing absorption of external re- maintained in construction and services, while sources, as imports were further liberalized substantial workers' remittances from abroad and rose by 13% in fiscal 1979. But the growth (which rose further to an estimated $1,400 of external reserves has slowed abruptly, and, in the longer run, sustained growth of the Indian economy will continue to require a large and rising volume of external assistance. In Bangladesh, improved economic and po- litical stability made it possible, over the last (t)Rural nonfarm activities include construction, commerce, services, transport, processing, and mnanufacturing. several vears, to focus increasingly on major Though most activities are very small in scale, they form the major training ground in nonfarm work for rtural developmental problems, in contrast with the people. South Asia 53 million in fiscal 1979) have sustained growth tax revenues, did not share in the expansion, as rates of incomes above those of output. How- it continued to suffer from past neglect, includ- ever, agriculture has continued to experience ing inadequate replacement of overaged plants, setbacks. The most notable recent example was declining incentives, and management prob- the 10% decline in the fiscal 1978 wheat crop, lems in two-thirds of the acreage that is in the affected by disease, and which necessitated public sector. Industry is showing a strong re- emergencv imports. Although wheat harvests sponse to the economic reforms, however. recovered during fiscal 1979 and rice produc- Heavy replacement investments and inventory tion continued to expand, both the cotton and replenishments were made in 1978, and con- sugar crops were disappointing and overall siderable expansion of capacity is beginning to agricultural growth rates remained low. take place, as well. These factors contributed The economic outlook in Pakistan is uncer- to a large increase in imports in 1978, but con- tain. A deterioration in the country's finances tinued good prices for exports and a strong re- is currently taking place, reflecting a large in- sponse to the policy reforms by aid donors crease in the budget deficit, a sharp rise in im- have kept the overall balance of payments in ports, and continued rapid monetary expan- surplus. Inflation was a relatively high 14%, sion. Additional resources from abroad on the due largely to one-time effects of the policy scale obtained during the mid-1970s from reforms. capital surplus countries of the Middle East or, The country's foremost economic challenges more recently, from rising workers' remit- are: to reduce high unemployment, to lessen tances, are unlikely to become available, and the dependence upon tree crop exports, and to careful demand management will be essential restore long-term economic growth. To help in order to avoid serious balance of payments achieve these goals, the government intends to problems and accelerated price increases, increase investments significantly during the which, in the last two years. have inflated the next five years. Public sector investment is GDP bv about 10% a year. Careful manage- to center around three major development ment will be a necessary prelude to the tackling schemes: the accelerated implementation of of fundamental longer-term problems, in par- the Mahaweli Ganga development program,(21 ticular near-stagnant productivity in agricul- aimed at harnessing the island's substantial ir- ture and industry, a rapid growth in population rigation and power potential; the establishment (3% a year), and, consequently, slow im- of a free-trade zone for industry; and a major provements in average incomes and the provi- new housing and urban development program. sion of basic social services. Burma continues to be a paddy-dominated economy, and over the last several years, rice Improving Prospects has regained its position as the leading export, accounting for about half of the total value of For Sri Lanka's economy, prospects have exports. During the first half of the 1970s, improved. The country benefited, in both cal- growth in rice production was barely equal to endar 1977 and 1978, from favorable mon- population growth, but record crops in the last soons which, after two years of serious three years, helped by favorable weather and drought, contributed to record paddy crops. an increased supply of agricultural inputs, re- Moreover, important policy reforms have versed this trend. Including other crops, agri- been initiated since mid-1977 that have already cultural output (value added) since fiscal begun to improve the economy's health. These 1976 has risen by about 5.5% a year in real measures include a unification of the exchange terms. Substantial gains have also been posted rate, the liberalization of import licensing and by the industrial sector (in recent years, of 7% exchange controls, policy-induced increases in per year or more). Efforts are continuing to prices of essential commodities and services, improve the efficiency of state enterprises including the procurement price of paddy, and through commercial guidelines and incentives the initiation of a range of new productive for workers. Prices have been highly stable projects. during the last two years, due to a larger out- GDP growth in real terms in calendar 1978 put and, in fiscal 1 978, to a sharp rise in im- was over 8%, up from 4% in 1977. Rice pro- duction which, in 1978, reached an all-time high of 1.3 million tons, was due to favorable weather, better production incentives, and im- proved availability of inputs, especially ferti- (2"Government assessments indicate that additional benefits lizer. Tea, which comprises 49% of merchan- to the economy made possible by the project's first phase (completed in 1978) in the last two vears have been dise exports and accounts for over one-third of nearly eqLial to the project's capital costs. 54 The Year's Activities, by Region ports made possible by import liberalization in agricultural productivity to prevent a drop and a near tripling of long-term capital in- in per capita incomes and a reversal from the flows. On the other hand, there continue to be traditional rice surplus to a deficit position. shortages created by generally low levels of Another key priority is the mounting of a more production and an inadequate distribution sys- vigorous family planning effort to counteract tem. Exports are substantially below the level the recent rise in the population growth rate. of a decade ago. A large potential remains for The Maldives economy traditionally has further gains in output through policy evolu- been almost entirely dependent on the produc- tion and a more intensive use of the country's tion and export of fish, but efforts to expand abundant natural resources, including teak, tourism and shipping industries have already minerals, and oil. met with some success. The government is also Nepal's immediate economic prospects have moving vigorously to provide some of the basic brightened following abatement of adverse infrastructure in such areas as health, educa- weather conditions which, in fiscal years 1977 tion, and communications. The Maldives (pop- and 1978, had caused a 10% drop in the out- ulation 150,000) has been a member of the put of rice, the country's leading crop and ex- Bank and IDA since January 1978. A first port. Real GDP growth in fiscal 1979 may $3.2; million IDA credit to the Maldives for reach 4% to 5%, almost double that of the fisheries was approved in May 1979. two preceding years. And inflation pressures, which, in fiscal 1978, caused a rise in average Bank and IDA Lending consumer prices of over 10%, have subsided. In fiscal 1979, Bank and IDA lending to the For many years, the subsistence needs of Region reached $2,077 million, compared with Nepal's growing population have been met by $1,648.9 million in fiscal 1978. The number of extending agricultural cultivation over larger projects assisted remained unchanged at 36. Of areas. Methods of cultivation remained tradi- total lending, 86% was on IDA terms, reflect- tional, and yields were 16w. With suitable new ing the poverty of South Asian countries and lands becoming increasingly scarce and erosion their very limited capacity to borrow on Bank accelerating, an early breakthrough is needed terms. Lending to Borrowers in South Asia, by Sectors (US$ millions. Fiscal years.) Annual Annual Average Average 1966-70 1971-75 1976 1977 1978 1979 Agriculture and rural development $ 51.7 $172.3 $ 345.5 $ 451.0 $ 899.7 $ 541.7 Education 4.2 2.4 12.0 15.0 5.7 35.0 Energy 3.8 12.0 - 150.0 - 30.0 Industrial development and finance(1') 40.4 62.9 65.0 29.0 120.0 16.0 Industry 13.0 81.2 105.0 71.0 - 334.0 Nonproject 113.0 175.3 350.0 75.0 75.0 100.0 Population and nutrition - 7.2 - - - 32.0 Power 13.1 37.8 283.0 150.0 305.0 467.8 Technical assistance 0.4 0.8 7.5 3.0 - 10.0 Telecommunications 17.5 48.1 - 80.0 134.5 - Tourism - 0.8 - - - - Transportation 41.2 62.3 114.6 70.0 22.0 206.5 Urban development - 7.0 - 49.0 87.0 - Water supply and sewerage 0.4 12.6 66.6 21.2 - 304.0 Total $298.7 $682.7 $1,349.2 $1,164.2 $1,648.9 $2,077.0 Of which: Bank $ 92.3 $102.2 $ 260.0 $ 394.0 $ 330.0 $ 300.0 IDA $206.4 $580.5 $1,089.2 $ 770.2 $1,318.9 $1,777.0 (1) Includes lending to development finance companies and small enterprises. South Asia 55 %~Population planning in Beangladesh i en assisted by two IDA c-redits. Ev,en if there were to z ~~~~~~~be dramatic declinies in both fertilitv and mortaility - ~. - , rates, the country would probably ave to su_pport "o ~~~~~~~~~~~~a populiationi at leaist 60% mare numerous than at present by the year 2000. In conformity with the lending pattern of Funds committed under co-financing ar- the year before, in fiscal 1979, agriculture and rangements with the Bank and IDA reached rural development ($542 million) and power $423 million, or 194% above last year's level, ($468 million) received the largest allocations, and 228% above the 1976-78 average. All but together accounting for almost half of total $7 million in co-financing funds were ac- lending. Lending to industry ($334 million) for counted for by official sources. (1~ fertilizer plants in Bangladesh, India, and Pak- Each co-financed project attracted an aver- istan also supported agriculture. Transporta- age of $33 million in co-financing during the tion ($206 million) and water supply and year, compared with about $29 million in fiscal sewerage ($304 Million) accounted for most 1978 and $25 million in fiscal 1977. of the other lending. Nonproject lending ($ 100 During the year, 15 official agencies par- million, including $25 million for fertilizer im- ticipated in co-financing Bank-supported and ports("1) took place on behalf of Bangladesh only, as it did during the previous two years. Because there have been no nonproject opera- tions in India and Pakistan since fiscal 1976, that sector's share of the lending program has recently been less than 5%. Other lending in fiscal 1979 ($123 million) was spread over 2In addition, Bangladesh received a $45 million nonproject credi trom the EEC Special Action Account, mainly for education, energy (oil), population, industrial fertie iorts. development and finance, and technical assist- ECo-financing data have been compiled from World Bank reports ot projects at the time of their Board approval, ance credits. and do not reflect cbanges in amounts since that time. 56 The Year's Activities, by Region IDA-supported projects. In addition to the the largest in the world. The main physical traditional bilateral donors to South Asian objective of this first project is to construct countries from Western Europe, the United village-level facilities needed by cooperatives States, Canada. and Japan, substantial funding for storing agricultural inputs and outputs. was secured from newer multilateral agencies Some 5.7 million farm families who are mem- such as the OPEC Special Fund, and from the bers of cooperative societies are expected to EEC Special Action Account. benefit. Also important, however. is the insti- tutional objective of helping to strengthen the Stimulating Agricultural Output NCDC and state-level cooperative institutions, especially the SCBs, and to promote the dis- Over the years, the Bank and IDA have cipline of sound project preparation, appraisal, supported long-term agricultural development and supervision in the cooperative sector. in South Asia, especially to increase food pro- Sri Lanka and Nepal were each beneficiaries duction and farmers' incomes, by providing of IDA credits for rural development in fiscal large-scale finance for the exploitation and 1979. A $20 million credit to Sri Lanka will management of surface and groundwater re- assist the development of one of the country's sources and the provision of other inputs: 24 districts, Kurunegala, in an integrated man- fertilizer, seeds, extension, and research. In ner to raise agricultural productivity, employ- fiscal 1979, most of the agricultural lending ment, incomes, and living standards, making was again devoted to these activities. The larg- it a replicable model for rural development in est credits were those for the Punjab and other districts. This project is expected to bene- Haryana irrigation projects ($240 million) in fit about 100,000 farm families directly and India, the salinity control and reclamation about 50,000 indirectly, two-thirds of them in project ($60 million) in North West Frontier the poverty target group. The credit to Nepal province of Pakistan, and a second paddy de- ($11 million) will help develop hill regions velopment project ($34.5 million) in lower that are inhabited by those who are among the Burma. As mentioned, substantial finance was very poorest in the country. It is largely a first also provided for fertilizer production and replication of a credit approved in 1976, and imports. is based on an integrated, multisectoral ap- Among the projects assisted in India, the proach. Benefits will be largely in the form of national agricultural research project, to which increased grain production (to meet subsist- IDA contributed $27 million, deserves special ence needs) and, in the longer run, cash crops. mention. Beneficiaries are the Indian Council for Agricultural Research (ICAR) and state Increasing Energy Supplies agricultural universities. This project has been designed to ensure that regional research pro- Expansion of energy, as a necessary ele- grams will be based on local needs, reflecting ment of industrial and agricultural growth and differing agro-ecological conditions, and will needed to upgrade living conditions in rural be linked to state extension services. The proj- areas, continues to have high priority in South ect will strengthen research at the state agri- Asia. Because of its size, requirements are par- cultural universities and ICAR's ability to sup- ticularly large in India. In the field of electric port, guide, and coordinate such research. It power, India has shown impressive growth in will be an important complement to the series generating and transmission capacity. Never- of IDA-assisted state extension projects ap- theless, the country's per capita consumption proved over the past three years. Close links of power, at 140 kWh, is still among the lowest will also be maintained, through ICAR, with in the world, and output has not expanded suf- the 11 international research centers supported ficiently to meet the rapidly growing demand. by the Consultative Group on International In the past, the Bank has made sizable con- Agricultural Research (CGIAR). ICAR is re- tributions to India's power supplies. This effort sponsible for liaison between the international was continued in fiscal 1979 through the com- centers and local research efforts. mitment of $250 million ($200 million IDA A new departure in lending for agriculture and $50 million Bank) for the Ramagundam in India in the past year was the S30 million thermal power. project in the southern region IDA credit to the National Cooperative De- and a $175 million IDA credit for a second velopment Corporation (NCDC) for relend- rural electrification project. The Ramagundam ing to state cooperative banks (SCBs) in the project will expand thermal generating capac- states of Haryana, Orissa, and Uttar Pradesh. ity by 600 megawatts and transmission by With some 325,000 societies and 80 million 1,200 kilometers. The new rural electrifica- members, the Indian cooperative system is tion project will help expand, in 14 states, South A sia 57 electrification of villages in selected areas and managerial and skilled manpower. These of irrigation pump sets, and small-industry shortages have become more acute in recent connections. years because of migration to the Middle East The Bank is making a new effort to improve and, to a lesser extent, Europe and North energy supplies by means of petroleum pro- America. Some serious shortages in industry duction and exploration. In fiscal 1977, $150 and construction in Bangladesh are expected million was lent to India for the production, to be alleviated by a $25 million IDA credit transportation, and processing of oil and gas for a vocational training project. The project in the Bombay offshore area. This project is provides for the establishment and operation progressing satisfactorily. In fiscal 1979, a of five new technical training centers, the $30 million credit to Pakistan for the Toot improvement of two existing centers, addi- oil and gas development project became the tional facilities for in-plant training and re- Bank's second oil development project in training of workers, and the creation of a South Asia. The United Kingdom and Canada National Cotincil for Skill Development and are contributing an additional $20 million to Training. In 1983, when facilities are expected help meet the costs of the project, which will to be fully operational, the total annual output assist in expanding oil output from the Toot from the expanded system of technical train- field, help strengthen Pakistan's Oil and Gas ing centers is to be over 10,000 skilled and Development Corporation in conducting its semiskilled workers in 18 different occupa- oil operations. and provide assistance for the tions, compared with the present output of evaluation and exploitation of the recently about 2,000. The indirect output from in-plant discovered Dhodak field. It is hoped that in- training, which is very limited at present, is tensified exploration and production will en- to be about 8,500 people yearly, of whom able Pakistan to reduce its oil import bill, some 1,500 are to be apprentices and the rest which exceeded $400 million in fiscal 1978, production workers. By 1983, training sup- by at least $200 million in the mid-1980s. ported by the project is to account for 85% of total output from the national vocational Opportunities in Education training system, and will meet about 40% of the total estimated skilled and semiskilled man- l.ow levels of literacy in large parts of the power needs of the nonagricultural sectors. South Asia Region inhibit agricultural produc- tivity and economic development in general. Reducing Population Growth The problem is exemplified in Pakistan, where the present primary educational system suc- Lowering the population growth rate re- ceeds in making only one-fourth of each new mains of great urgency in the South Asia Re- generation literate. A $10 million credit to gion, with the notable exception of Sri Lanka, Pakistan for a primary education project con- which has already shown success in doing so. stitutes the first phase of a program to over- The urgency and enormity of the population come the country's major problems of primary problem stand out in the case of Bangladesh. education: inequitable access, high dropout Crowded into a land about one-third the size rates, low achievement, and high costs. Ex- of California are 85 million people, over 90% perimentation and evaluation will be central of whom live in rural areas. The country's features of the project which covers about population density, at 590 persons per square 4,100 schools (7% to 8% of the national kilometer, is exceeded in only a very few small total). The project, in addition to helping countries. Projections indicate that if fertility finance physical facilities, aims at strengthen- and mortality rates change little from present ing teacher training and supervision, and at im- levels, Bangladesh's population could rise to proving instructional materials and curricula. around 160 million by the year 2000; if there Special emphasis will be placed on increasing were dramatic declines in both rates, the the attendance and literacy of impoverished country would still have about 130 million children, in particular girls, in rural areas. people by that time. By the turn of the cen- As part of the monitoring and evaluation tury, therefore, Bangladesh will probably have process, progress in project areas will be com- to support a population at least 60% more pared systematically with conditions in non- numerous than at present. project areas. A first population project in Bangladesh Although South Asia is a labor surplus re- was inaugurated in 1975; IDA and six co- gion, widespread shortages that impede the lenders (Australia, Canada, the Federal Re- achievement of developmental and production public of Germany, Norway, Sweden, and the targets and of gains in productivity exist in United Kingdom) contributed $15 million and 58 The Year's Activities, by Region S25 million, respectively, to its financing. After management, monitoring and evaluation, and initial delays, progress in project implementa- research capacity. Included in the project is tion is now satisfactory and funds are ex- the establishment of 19 additional district pected to be substantially disbursed by the (thana) health complexes, 700 family wel- end of 1980. Under a second population and fare centers, four medical assistants' training family health project, approved in fiscal 1979, schools, and 19 training centers for paramedi- IDA will provide another $32 million and the cal workers. The program aims at recruiting, same co-lenders, plus the Netherlands, a total by 1983, about 4 million additional acceptors, of about $67 million. The second project aims, or about 24% of the estimated married women as did the first, at expanding and improving of child-bearing age in the country. In addi- health care delivery and family planning ser- tion, about 36 million women and children (or vices; training of health and family planning 56% of the total number of women and chil- field staff; information, education, and motiva- dren in the country in 1983) would be reached tion activities; and strengthening the program's by health care services. 59 Europe, Middle East, and North Africa Trend in Lending, 1966-79 Per capita (US$ milbons Fiscal years.) Borrowers, Population(') GNP 1977(2)os.Fsayer) fiscal 1977-79 (000) (US$) (00) Number of Operations Afghanistan 14,304 190 -2,336.6 Algeria 16,997 1,110 - (51) - Cyprus 644 1,830 1 Egypt, Arab Republic of 37,796 320 .0 (44) Greece 9,231 2,810 - (44) Jordan 2,888 710 - 1,570.1 Lebanon 2,939 n.a. 1,45.6 (44) Morocco 18,310 550 '5 (45) Oman 814 2,540 - Portugal 9,577 1,890 - Romania 21,648 1,580 912.4 Spain 36,298 3,190 (38) Syrian Arab Republic 7,835 910 - Tunisia 5,899 860 = = Turkey 41,949 1,110 - Yemen Arab Republic 4,982 430 Yemen, People's Democratic - 209.2 Republic of 1,717 340 - (12) Yugoslavia 21,738 1,960 - NOTE: The 1977 estimates of GNP per capita presented 1966*70 197175 1976 1977 1978 1979 above are from the 1979 World Development Indicators. Annual Averages (a) Estimates for mid-1977. (2> World Bank Atlas methodology, 1975-77 base period. n.a. Not available The Europe, Middle East, and North Africa social objectives, such as employment, income Region consists of a mosaic of member coun- distribution, rural and urban development, tries, rich in the diversity of their economies, education, and health. In response to these societies, and politics. This diversity is re- concerns, the World Bank has found many flected in the developments that have occurred countries of the Region to be interested in in the last year in these countries. Yet, in re- maintaining continuing discussions on these sponse to the rapid pace at which international issues. economic interdependence is proceeding, most The urgency of this redirection of effort is countries have started to undertake a funda- the greatest in countries at the lower-income mental reassessment of their development ob- levels, such as Egypt, Afghanistan, the Yemen jectives, constraints, investment strategies, and Arab Republic, and the People's Democratic economic policies. As the Second Development Republic of Yemen. In these countries, the Decade draws to a close, the burden of ex- Bank is closely involved in the implementa- perience with the pursuit of traditional pat- tion of innovative projects designed to help terns of growth has led one government after meet social needs. The shortage of domestic another to conclude that future development resources, administrative and institutional bot- strategies must be founded on a greater con- tlenecks, and the low current levels of produc- cern for more direct attainment of significant tivity in these economies, however, have maele 60 The Year's Activities, by Region the task of implementing viable, socially ori- and implement its medium-term policies. ented projects complex and difficult. Never- The three higher-income, nonoil-exporting theless, all of these countries are undertaking developing countries of the Region are con- a considerable expansion of their social infra- tinuing major restructuring of their economies, structure and are successfully reaching, for a course of action necessitated by the changes the first time, some of the poorest sections of that had their beginnings in 1974 in the world their populations. economic outlook. In the early years of the Social concerns have equally come to the 1970s, Portugal, Yugoslavia, and Romania all fore of policy concerns of the middle-income experienced rapid economic expansion, based and higher-income countries. Their ability to to a large extent on high rates of growth of pursue new directions in economic activity is, exports. Portugal and Yugoslavia also bene- to some extent, however, restricted by their fited from high levels of workers' remittances still limited capacity to design and implement and from tourism earnings. The success of new-style development projects (such as low- these three countries in economic restructur- cost housing, and improving the productivity ing has been mixed. For Portugal, 1978 may of dryland farming). While middle-income well be remembered as the year in which its countries have successfully undertaken sig- economy turned the corner; after several years nificant initiatives in the social sector, they of widening external deficits, high rates of have also had to tackle a variety of problems export growth and of tourism earnings re- that are largely of external origin. In several turned. Yugoslavia, too, experienced a turn- of these countries, governments have been around, and its current account deficit was handicapped by severe financial stringencies somewhat reduced from the previous year. that have emerged, partly for domestic rea- Romania, however, found itself unable to sus- sons, such as the institutional difficulties in tain economic advances made in 1977; a poor mobilizing savings, reorienting investment, and agricultural harvest was a major reason. Aside promoting exports. The financial squeeze has from problems of short-run balance of pay- been accentuated by the rise in the prices of ments deficits, however, these three countries imports from the industrial countries and by have been able to undertake the priority in- increased protection in some industrialized vestment programs that will be needed to countries which has adversely affected export ensure rapid growth in the longer term. earnings. The growth of the current account Led by the unabated worldwide demand for deficit in the balance of payments of several energy, most of the major petroleum-exporting of the middle-income and higher-income coun- countries of the Region continued to generate tries has been met increasingly by the con- balance of payments surpluses, partly as a re- tinued expansion, during the last fiscal year, sult of an increase in prices that went into of commercial bank lending at significantly effect in January 1979. There was also a mod- harder terms. This expansion has become a est increase in the overall volume of petroleum source of concern for the medium run. extraction and exports, even though individual Turkey's financial problems were well docu- shares in each varied. The temporary cutback mented during the past year. Responding to in petroleum extraction in Iran contributed to that country's need for assistance to help the scarcity of international petroleum sup- finance imports of high priority commodities plies, even though Saudi Arabia, and to a required to utilize existing industrial and agri- lesser extent Kuwait, increased extraction in cultural productive and export capacity more an attempt to fill the gap. Broadly speaking, fully, the Bank approved a $150 million loan the petroleum-exporting countries were suc- to cover short-term import needs of selected cessful in fiscal 1979 in the pursuit of their items. In the agricultural sector, the loan development strategies that are based on the financed the importation of herbicides and use of their oil revenues to diversify their eco- pesticides, and raw materials that go into the nomic structure. There was also a trend in making of fertilizers. In the industrial sector, these countries during the year to stabilize the loan helped to cover the costs of import- budgetary expenditures in an effort to con- ing steel products, tin and tinplate, copper, tain inflation. aluminum, petrochemical and other chemical products, as well as spare parts. Most impor- Bank and IDA Activiti tant for the longer run, the loan was designed to contribute to the government's efforts to In fiscal 1979, Bank and IDA commitments maintain per capita output and employment at of $2,337 million helped finance 51 projects levels such as to make it politically possible in the Region, compared with 44 projects for for it to carry through its stabilization program $1,856 million in the previous fiscal year. Europe, Middle East, and North Africa 61 Lending for agricultural and transportation child health family planning program; ex- development accounted for 27% and 17%, panded local health services through the con- respectively, of the total for the Region. As in struction and equipping of 48 rural health the recent past, the Region remained one of units and nine small urban general health cen- the major recipients (about 27%c ) of Bank ters; and research and evaluation activities. lending to industry and development finance The project includes the first large-scale at- companies. tempt to promote family planning by directly Funds committed under co-financing ar- approaching potential users through a home rangements with the Bank and IDA reached visiting program. In cooperation with commu- $926 million. or 25% below last year's level, nities from which they are drawn, part-time and 14% above the 1976-78 average. ) home visitors are being selected and trained Each co-financed project attracted an aver- to visit "target group" households; each house- age of about $34 million in co-financing dur- hold will be visited at least once everv two ing the year. compared with about $62 million months. In addition, the project includes funds in fiscal 1978 and $37 million in fiscal 1977. for innovative activities that may be developed During the year. 19 official agencies par- during the course of its implementation. The ticipated in co-financing Bank-supported and project will concentrate on reaching the people IDA-supported projects. The most important in seven of Egypt's 25 governorates with a total contributors were the Arab oil-exporting coun- population of 10 million, or approximately tries, industrialized countries of Europe and one-quarter of Egypt's population. North America, and Japan. An urban development project, to be im- In a continuation of its program of provid- plemented in Tunisia's two largest cities, ing technical assistance on a reimbursable Tunis and Sfax, represents an innovative ap- basis to oil-exporting countries in the Region, proach to the resolution of some of the most the Bank has been assisting the governments urgent problems facing Tunisia's urban areas of Kuwait, Libya, Qatar, Saudi Arabia, and today. Assisted by a Bank loan of $ 19 million, the United Arab Emirates in a number of im- the project aims at making available, directly portant sectors such as national planning, in- at the local level, an integrated and affordable dustry, power, construction, housing, urban (with limited subsidy) "package" of goods planning, education, productive services, pub- and services for low-income urban dwellers. lic administration, and, in particular, man- The package includes the upgrading of exist- power planning. Among the objectives of the ing low-income housing settlements, construc- manpower planning studies are the estimation tion of new low-cost housing, social and infra- of domestic demands for various types and structural services, and the creation of jobs. levels of manpower over the decade, and the As a result of this project, together with a development of analytical and institutional water and sewerage project approved earlier capabilities within these governments to initi- in the year for the Greater Tunis area and ate manpower plans, evaluate alternatives, and Sfax, some 120,000 low-income people are ex- evolve and update detailed policies and pro- pected to be provided with improved facilities. grams for meeting manpower needs. Expanding Job Opportunities In past years, the Moroccan government has In fiscal 1979, the Bank approved a $25 favored the adoption of large, capital-intensive million credit on IDA terms for a second industrial projects rather than small-scale in- population project in Egypt to assist the gov- dustries. Recently, however, the government ernment in reducing population growth. The has focused on the potential of small-scale project attempts to come to grips, on a signifi- industries for creating employment at rela- cantly larger scale than any previous program tively low costs, increasing exports, and open- in the country, with the problems that have ing up opportunities for small entrepreneurs. hindered the wide-scale adoption of family Two years ago, a pilot project was included planning practices. It provides for the devel- in a Bank loan to Morocco's Banque Nationale opment and expansion of a program of infor- pour le Developpement Economique (BNDE) mation, education, and communication in as a line of credit reserved for small industries. maternal and child health and family plan- A $25 million Bank loan to Morocco, de- ning; improved training of medical and para- medical personnel to improve their knowledge and practice of community medicine and their O)Co-financing data have been compiled trom World Barolk reports of projects at the timei of their Board approvai. maniagement of an integrated maternal and and do not reflect changes in aimoLunts sinice that time. 62 The Year's Activities, by Region signed to take into account experience gained ary curriculum; and will significantly increase under the pilot project, was approved during the number of more highly trained technicians the past year. Several ministries, commercial and engineers who will replace expatriates in banks, and specialized financial institutions all line with the government's policy of combin- joined in its preparation. The project will pro- ing rapid growth, modernization, and self- vide financial and technical assistance to over reliance. The project, which is viewed as a 200 small manufacturing firms and help create comprehensive effort to integrate the develop- directly at least 5,000 jobs at a cost-per-job- ment of middle-level and higher-level tech- created not exceeding $10,000. Participating nical education more closely with the needs institutions have simplified lending procedures of the country's economy, will create about for small industries, and access to credit will 10,200 new places for the training of middle- be eased through the establishment of a guar- level technicians, 660 for technical teacher antee scheme. Cost monitoring during proj- trainees, 1,200 for higher-level technicians, ect implementation will allow for adjusting and 2,400 places for engineers. assistance provided to this newly developing A $40 million Bank loan for industrial de- subsector. velopment in Kosovo province, the least devel- A $113 million Bank loan for a fourth edu- oped region of Yugoslavia, where the incidence cation project in Morocco represents the of chronic unemployment is especially high, largest Bank loan ever made in support of aims to create urgently needed job opportuni- education. It aims at improving the relevance ties, while contributing to the overall develop- of the education and training system so as to ment and improvement of the standard of liv- help meet better the country's needs for skilled ing of the region. It is estimated that more manpower. The project will establish the first than 3,000 jobs will be either created or re- Moroccan technical teacher training institu- tained as a result of the project, which gives tion for the expanding system of technical a new emphasis to creating the maximum num- lyc6es designed to produce middle-level tech- ber of jobs for each dollar invested. The pro- nicians; it will also provide training for teach- ceeds of the loan are to be used to help finance ers of the "introduction to technology" courses projects that will promote diversification of that are to be introduced in the lower second- the industrial sector of Kosovo away from Lending to Borrowers in Europe, Middle East, and North Africa, by Sectors (US$ millions. Fiscal years.) Annual Annual Average Average 1966-70(0) 1971-75(') 1976 1977 1978 1979 Agriculture and rural development $ 43.1 $ 212.0 $ 402.0 $ 429.5 $ 559.2 $ 636.0 Education 7.2 54.1 88.9 79.5 191.0 188.0 Energy - 18.3 49.0 - - 77.5 Industrial development and finance(2) 67.4 156.6 160.0 239.0 75.0 175.0 Industry 9.0 98.3 188.0 171.8 247.0 234.0 Nonproject - 14.0 - 70.0 50.0 150.0 Population and nutrition - 5.3 - 4.8 - 25.0 Power 21.4 163.5 258.5 142.5 118.0 276.0 Technical assistance - 0.6 - 1.5 - - Telecommunications 8.0 35.1 28.0 - 53.0 - Tourism - 11.9 27.0 26.0 - 32.5 Transportation 72.5 190.2 146.2 232.5 390.0 406.6 Urban development - 12.5 - - 32.0 19.0 Water supply and sewerage 5.1 53.9 138.0 173.0 140.7 117.0 Total $233.7 $1,026.3 $1,485.6 $1,570.1 $1,855.9 $2,336.6 Of which: Bank $209.2 $ 912.4 $1,341.9 $1,474.3 $1,660.5 $2,081.5 IDA $ 24.5 $ 113.9 $ 143.7 $ 95.8 $ 195.4 $ 255.1 ') Includes lending to Finland, Iceland, Iraq, Ireland, Israel, and Spain which are considered past borrowers. (0) Includes lending to development finance companies and small enterprises. Europe, Middle East, and North Africa 63 SeivXn IDA credits, totalinq $66.9 milliozn, have beeLl approved to help dei*elop the agriculture sector of the Yemeni Arab Republic. In fiscal 1979, a $I5 million IDA credit in support of that sector itas joined b)y $38 oiziliionl in funds fromn co-financers. basic industry, which is relatively capital-in- recovery methods applicable to the Bati Raman tensive, towards more labor-intensivc entcr- field, in order to determine the best economic prises. From such diversification, Kosovo and technical method. Based on the findings industries should become better integrated into of the study, the loan will also finance the the overall Yugoslav industrial sector. design and engineering of a pilot plant to apply the selected technology and confirm that EF;nergy and Mining Development the chosen method is the most economical for the whole field. It is envisaged that both the Turkey's major oil field at Bati Raman in pilot project and the eventual exploration proj- the western part of the country has proven ect will be assisted by the Bank. reserves of about 2,000 million barrels. Be- The implementation of the single largest cause of the heavy asphaltic nature of that oil industrial project ever undertaken in Jordan and the field's geological structure, only 7%, will be aided by a $35 million Bank loan to of the oil in place has been recovered, using the Arab Potash Company, with additional primary and various secondary recovery meth- financial support from the Kuwait Fund for ods, during the field's more than 25 years of Arab Economic Development. the United exploitation. The Bank. therefore, readily re- States Agency for International Developmcnt, sponded to Turkey's urgent request for help, the OPEC Special Fund, the l.ibyan Arab since the application of appropriate recovery Foreign Bank, the Iraqi Development FuLnd. techniques could provide the immediate pos- the British government, the Islamic Develop- sibility of increasing domestic oil production. ment Bank, the Arab Mining Companv, and A $2.5 million engineering loan, the first made the Arab FuLnd for Economic and Social by the Bank to Turkey's oil sector, will help Development. the Turkish Petroleum Corporation undertake The $428.8 million project is designed to a comparative feasibility study of enhanced produce I .2 million tons of potash a year from 64 The Year's Activities, by Region Dead Sea brine. It consists of a solar evapora- drainage and clearing of bushes, trees, and tion and brine transfer system; a carnallite hedges) and irrigation of both social and in- harvesting system (carnallite is a double salt dividual sector land will also be provided. of potassium and magnesium containing about Extension services are being made available 23% potash); a refinery to produce fertilizer- to individual farmers through the agrokom- grade potash; utility facilities, consisting of binat, and investments are to be made by the power, water supply, and sewerage systems; agrokombinat in heifer, cattle, pig, and sheep and a town for workers. The existence of farms and seed and nursery facilities-all de- conditions favoring solar evaporation for proj- signed to improve livestock breeds and crop ects of this kind makes the project location varieties. Ten agro-industries, which process particularly suitable; the location will result in meat, milk, fruit, vegetables, and barley, will substantial savings in conventional energy re- either be constructed or expanded. It is esti- quirements and enhance the project's competi- mated that, at full development (in 1983), the tiveness. At full capacity in 1985, the project average net income of 12,000 individual farm- is expected to contribute about $150 million ers will increase by 120%. Approximately yearly to industrial exports, or about 8% of 9,000 of these farmers currently have per the annual value of expected total exports, and capita annual incomes of less than $225, well will help diversify the industrial base of the below the republic's average ($957). A fur- Jordanian economy. Other expected benefits ther 20,000 farm families will benefit from include the creation of 700 permanent jobs improved marketing outlets and technical as- and the establishment of a new industrial area sistance, and some 4,500 man-years of employ- in a remote part of the country. ment are expected to be created. A $10 million IDA credit to the People's Agricultural Development Democratic Republic of Yemen will support a fisheries project that is expected to have a In 1969, the Bosanska-Krajina region in the widespread developmental impact in the re- northwestern part of the Yugoslav republic mote Sixth governorate, one of the country's of Bosnia-Herzegovina was struck by a mas- poorest and least developed areas. The lack of sive earthquake, resulting in severe physical infrastructure, the rugged terrain that isolates damage and economic disruption. As one of it from the rest of the country (and hence the steps taken to reconstruct the area-in makes it inaccessible to markets for its abun- one of the country's poorest republics-a re- dant fish), and the absence of any other ex- gional development plan was devised by the ploitable resource have all worked to deter United Nations Development Programme with the area's economic development. Through assistance from the FAO/IBRD cooperative the construction of a fisheries and general program. A Bank loan of $55 million will cargo port, the construction of fish processing support the program, which concentrates on facilities, and the establishment of an efficient improving productivity of groups of private fish colle tion system, the project will help farmers who have pooled their land and labor establish a link between the isolated governor- to operate as part of a social sector enterprise ate and the outside world. Provision of fishing (agrokombinat). Though the ownership of the vessels, outboard engines, fishing gear, and means of production-their farms-remains repair and maintenance facilities is also de- in private hands, the farmers utilize the tech- signed to increase the incomes of the tradi- nology of the agrokombinat, provide its proc- tional fishing community. An estimated 1,350 essing facilities with produce on a contract traditional fishermen and their 8,500 family basis, and receive a share of the profits of the members are expected to benefit directly from enterprise. The cooperation between the indi- the project, for at full development in 1987, vidual and social sector is, therefore, highly the per capita income of the traditional fishing integrated and mutually beneficial. population could increase, on the average, The Bosanska-Krajina project assists pri- from the present $152 (compared with the mary production by making subloans through country's per capita gross national product of the Bank of the Republic of Bosnia-Herzego- $340 in 1977) to $339. In addition to the tra- vina to 23 associations of farmers (involving ditional fishing community, the entire popula- about 12,000 individual farmers) for invest- tion of 60.000 in the Sixth governorate is ment in livestock, cereal (maize, barley, wheat), expected to benefit from the project, as the fruit (apples, cherries, pears, strawberries), construction of the port at Nishtun will make and vegetable (potatoes, peppers, cucumbers, the area more accessible and lead to its accel- beets) production. Subloans to social sector erated development through an increase in the enterprises for land reclamation (through level of economic activity. Europe, Middle East, arnd North Africa 65 A $16.5 million IDA credit for agriculture Trans-Yugoslav highways. In the earlier years and rural development in Afghanistan aims to of that relationship, Bank loans generally raise rural incomes and standards of living by helped finance improvements on main high- increasing agricultural and livestock produc- ways which were essential to the country's tion in two provinces that include some of the overall economic development and integra- poorest rural groups in the country. The proj- tion. In recent years, however, project empha- ect provides essential supporting services for sis has shifted to assistance to the less devel- the new government's program of restructur- oped regions. During the whole period, the ing society through land reform and more Yugoslav authorities and the Bank have de- equitable income distribution. The project in- voted considerable efforts to improving project cludes improvements in rural roads, irrigation preparation and highway planning. These water supply, access to credit, efficiency of, efforts have resulted in the countrywide adop- and farmer access to veterinary, extension, and tion of a uniform methodology and criteria for cooperative services, and an increased use of project analysis, the preparation of compre- fertilizers and improved seeds. An important hensive master plans, and the introduction of project objective is to extend these services out a system of rolling planning. into the villages where the need is greatest. Responding to a request by the Greek gov- The per capita incomes of some 62,000 farm ernment to assist in preparing and financing families, including about 3,000 to 4,000 nomad one last development project in this increas- and transhumant families, are expected to in- ingly high-income member country, the Bank crease over the next four or five years by approved a loan of $25 million to cover part about 70%, from an average of about $60 to of the foreign exchange financing needs of a over $100. As with all rural development proj- major forestry development project. Commer- ects, the full benefits cannot be measured in cial sources are being tapped by Greece for quantifiable input-output terms, and at least another $25 million of foreign exchange. The an additional 100,000 people may benefit in- project will help Greece develop its substantial directly, through the provision of clean drink- overly mature and underutilized forests in the ing water supplies and an expansion of farm western half of the country so as to reduce its and nonfarm employment opportunities cre- rapidly rising imports of wood and wood prod- ated by on-farm labor requirements and ucts. A substantial institution-building and through increases in marketing, commercial, technical assistance effort, aimed at introduc- and transport activities. ing advanced mechanical logging methods and modern forestry management systems, will Highways and Forests also be undertaken. About 5,000 kilometers of forest roads will be built or improved, 25,000 Help in financing the highway master plans hectares of trees planted, and equipment and of five of the least developed areas (three re- training provided for new methods of planta- publics, two autonomous provinces) in Yugo- tion establishment and timber extraction. The slavia will be forthcoming as a result of a project also provides assistance for preparing $148 million Bank loan. The project is de- a future regional development project that signed to help meet the total highway needs other external donors may wish to consider in each jurisdiction and not single highways on financing. Living standards for about 25,000 a piecemeal basis. This "total" approach is the villagers who live in or near forested areas, culmination of 16 years of close cooperation and who have incomes significantly below the between the authorities and the Bank, or ever national average, are expected to improve, and since the Bank approved a first loan for im- development in one of the country's poorest proving critical sections of the Adriatic and regions will be stimulated. 66 Latin America and the Caribbean Per capita Borrowers, Population(l) GNP 19770) fiscal 1977-79 (000) (US$) Argentina 26,036 1,730 Trend in Lending, 1966-79 Bahamas 213 3,520 (US$,millions. Fiscal years.) Barbados 248 1,770 (00) Number of Operations Bolivia 5,154 630 2,264.8 Brazil 116,100 1,360 ,221101 (50) Chile 10,553 1,160 - 2(49) 5 Colombia 24,605 720 - 1,893.2 Costa Rica 2,061 1,240 ' (48) Dominican Republic 4,980 840 Ecuador 7,324 790 _ El Salvador 4,256 550 1,448.4 Guatemala 6,436 790 1500 (42) Guyana 817 560 - Haiti 4,749 230 Honduras 3,322 410 ooo 861.4 Jamaica 2,101 1,150 (30) Mexico 63,319 1,120 Nicaragua 2,411 830 438.8 Panama 1,762 1,220 (21j Paraguay 2,810 730 Peru 16,363 840 = Trinidad and Tobago 1,115 2,380 Uruguay 2,876 1,430 0- NOTE: The 1977 estimates of GNP per capita presented 1966 70 1971-75 1976 1977 1978 1979 above are from the 1979 World Development Indicators. Annual Averages (l) Estimates for mid-1977. (2) World Bank Atlas methodology, 1975-77 base period. For the Region as a whole, calendar year consequence of both a strong recovery in the 1978 represented a continuation in the process industrial sector that took place following the of adjustment to, and recovery from the ad- stabilization measures of 1976-77 and the dy- verse developments that have affected the namic growth of the petroleum sector. Other world economy since the early years of the countries also fared well: Colombia, Hondu- present decade. Overall expansion of real out- ras, and Paraguay achieved growth rates of put in the Region increased from 4.2% in 1977 8% and higher, and Chile and Costa Rica both to about 4.7% in 1978. Although this growth reported increases in output of 6% or more. rate was well below the average levels of the In the oil-exporting countries, real GDP con- period 1965-74, signs of more vigorous growth tinued to expand rather rapidly, with both and improved financial and economic manage- Ecuador and Venezuela reaching growth rates ment are apparent in many countries. of close to 7%. Growth in Trinidad and Recoveries in Brazil and Mexico greatly in- Tobago was 5.3%. To an extent, however, fluenced the regional average. In Brazil, gross these advances were offset by declines in GDP domestic product (GDP) increased by 6.3% in Argentina, Guyana, Jamaica, and Peru- as a result of vigorous growth in the manu- all of which were in the process of implement- facturing sector and despite adverse weather ing programs of economic stabilization. conditions that affected agricultural output. Based upon data for 17 countries account- Mexico's 6.5% growth in real output was a ing for 95% of the Region's population and Latin America and the Caribbean 67 a larger share of output and trade, aggregate latter was the only major country in the Re- output reached $464,000 million and invest- gion to register a large current account surplus. ment expenditures reached $99,000 million in A positive development in the economic 1978. Imports and exports of $63,800 million evolution of the Region in calendar 1978 was and $58,900 million, respectively, resulted in the continuing progress registered in the fight a resource gap of $4,900 million in 1978, com- against inflation. To a great extent, progress pared with $2,300 million the previous year. was the result of stabilization programs under- Principally because of interest payments on taken in several countries in the recent past. external debt, the current account deficit in The average rate of price increases (measured the balance of payments reached $14,100 mil- by consumer price indices) for the Region as a lion for the year, well above the $9,600 million whole was just over 40%, down from nearly level recorded in 1977. Interest and other 50% in 1977 and 75% in 1976. Among the factor service payments thus accounted for a copntries showing progress, Chile, Colombia, larger part of the current account deficit than Guatemala, Mexico, and Uruguay registered did the resource gap. While this 1978 deficit the most dramatic improvements, while the represents a new high in absolute terms, it is situation in Brazil improved moderately. On no more than 3% of the Region's GDP; by the other hand, inflation in Argentina reached contrast, the smaller nominal current account the same high level as in 1977. Jamaica and deficit of $13,800 million in 1975 was 4.1% Peru had increasing inflation rates and con- of that year's GDP. stituted the main exceptions to the general The larger current account deficit in 1978 trend. In these two instances, the price in- was also partly the result of both a regional creases, in large measure, represented correc- deterioration in the terms of trade and the con- tive price adjustments (arising from postponed sequence of higher interest rates on an increas- exchange rate adjustments and the reduction of ing volume of debt. The fall in coffee prices subsidies) that were necessary parts of their had a major effect upon the Region's export programs to restore financial stability. earnings; this decline represented, however, a On balance, the year was a satisfactory one return towards more normal long-term prices for the Region as a whole. This is obviously following the extraordinary levels reached in true in the sense that there was, on average, 1977. Prices for some other important com- a significant improvement over the previous modities, such as beef and copper, improved, year. Equally important, however, was the fact although relatively poor sugar prices con- that in most of the cases where there was an tinued to create problems for several coun- apparent decline in output or an increase in tries. Price increases and decreases roughly inflation, the event was associated with the offset each other, and export prices were, on adoption of economic stabilization measures the average, almost unchanged from 1977. As that should lay the basis for greater financial import prices rose by over 6%, the Region's stability and renewed economic growth in the terms of trade deteriorated by about this near future. same amount. Taking into account the trends in interest Trends in Social Indicators rates and commodity prices, the Region's bal- Although social indicators do not usually ance of payments results in 1978 must be con- shift significantly from year to year, there sidered, in general, as satisfactory. have been some important changes during re- In view of the liquidity in the international cent years that merit attention. While the Re- capital market, the countries of the Region had, gion's overall population growth rate had been with a few exceptions, no difficulty in financing increasing in the 1960s, it has lately begun to their current account deficits. The aggregate decline. The most recent figures indicate an net inflow of long-term capital for the group average growth rate of 2.6%, compared with of 16 countries (excluding Venezuela) ex- the 2.7% reported in 1970. The decline is so ceeded $19,000 million, compared with far concentrated in a limited number of coun- $13,400 million in 1977, and was adequate to tries and is associated with higher indices of cover the current account deficit, plus a small per capita income, urbanization, and both net outflow on other capital account items, and education and employment of women. The still allow for a $7,500 million increase in death rate has continued to decline (life ex- net international reserves. Brazil and Mexico pectancy in the Region now averages 63 continued to account for the largest part of years), and the birth rate has dropped even the capital inflow; the increase in reserves was more rapidly. The increasing official support especially noted in Brazil and Argentina. The for family planning services has been impor- 68 The Year's Activities, by Region tant in reducing fertility, although programs productive work opportunities, both to provide are still relatively limited in most countries. jobs for the new entrants into the labor force The fact that some countries in the Region and to bring into the development process have reached turning points in their popula- those groups and areas that have tended to be tion growth rates does not indicate that popu- left out; and (b) managing the continued trend lation-related issues are no longer a major con- toward urbanization. Experience in the Region cern. As a result of past population growth suggests that without high growth rates and rates and the increasing employment of women, reasonable overall financial stability, these the labor force is sure to expand rapidly, and, problems can become increasingly intractable thus, more jobs must be created. Moreover, and the broader socioeconomic objectives can longer-term projections suggest that, even often be frustrated. More attention is also being under optimistic assumptions about future given to specific measures, especially policies trends in fertility rates, the population in most to expand employment opportunities. countries of the Region will double or triple Practically all the countries of the Region before stabilizing. contain substantial sectors or regions where The continuing rapid shift of the population poverty is a serious problem; specific programs from rural to urban areas adds to the potential and policies are being studied to meet basic social problems. The Latin America and the needs in areas such as nutrition and health, Caribbean Region is already the most heavily housing, water supply and sanitation, and edu- urbanized of the developing areas. Recent esti- cation. In each of these cases, it is not simply mates indicate that 59% of the population now a question of raising current consumption lives in urban areas, compared with 54% in levels, but of investing in human resources in 1970. In the same period, the share of the order to improve the productive potential of labor force employed in agriculture has fallen individuals. In the case of major urban cen- from 41% to 37% of the total. At the same ters, the Bank is looking at ways by which the time, productivity in agriculture is improving needs of present populations might be met and so that average food output per capita is above future growth moderated. Growth might be the levels of the early 1970s; on average, the moderated, in part, by encouraging the build- supply of calories is about 106% of estimated ing of alternative urban centers and, in part, requirements, compared with 103% in 1970. by seeking to hold a larger share of the grow- In its analysis of longer-term development ing population to rural areas through develop- concerns, the Bank's attention is increasingly ing nonfarm employment opportunities and centering around two issues: (a) expanding expanding programs that benefit small farmers. Lending to Borrowers in Latin America and the Caribbean, by Sectors (US$ millions. Fiscal years.) Annual Annual Average Average 1966-70 1971-75 1976 1977 1978 1979 Agriculture and rural development $ 60.5 $212.1 $ 224.5 $ 507.0 $ 655.5 $ 405.0 Education 14.1 32.4 35.0 59.0 33.7 52.5 Industrial development and finance(l) 17.5 36.3 280.0 198.0 277.0 252.0 Industry 9.4 91.4 183.0 241.0 85.0 185.5 Nonproject - 12.0 4.0 26.5 30.0 156.5 Population and nutrition 0.4 0.6 25.8 5.0 25.0 - Power 234.5 152.4 218.0 351.0 398.0 346.0 Technical assistance - 2.7 - - 11.0 - Telecommunications 14.1 35.1 - 60.0 33.6 - Tourism - 8.6 - 42.0 50.0 52.5 Transportation 85.3 236.5 404.5 329.5 199.0 468.5 Urban development - 9.8 21.6 12.7 162.8 176.5 Watersupplyandsewerage 11.8 66.8 52.0 61.5 149.5 169.8 Total $447.6 $896.7 $1,448.4 $1,893.2 $2,110.1 $2,264.8 Of which: Bank $438.8 $861.4 $1,408.9 $1,868.2 $2,054.5 $2,232.8 IDA $ 8.8 $ 35.3 $ 39.5 $ 25.0 $ 55.6 $ 32.0 (1) Includes lending to development finance companies and small enterprises. Latin America and the Caribbean 69 Since fiscal 1967, when the Latin America and the Caribbean Region's first Bank loan for education was approved, loans totaling more than $400 million in support of the sector have been approved. The photo shows Colombian students i.n a secondary school library. The Caribbean Region of commnon regional concern that serves as a For he Cribban Rgion a sgnifcant basis for the Group's discussions, while the Feeormeth Casibbea Regtbio,asigenificath UNDP coordinates technical assistance activi- Caribbean Group for Cooperation in Economic asiestaInce adthen Grou isr concernedtitha projei- Development in fiscal 1978, as reported in last asiziang e quikl disbursin programe ad cih obi- year's Annual Report. The Bank chaired this moitigqiky as istance ing sppogrtaof sabilzaton- Consultative Group in association with the In- moiyastncinuprtfsablzin ternational Monetary Fund (IMF), the Inter- programs undertaken by some countries in the American Development Bank (IDB), the area. The Caribbean Development Facility Camricban Development Bank (CDB),an the (CDF), established at the same time in 1978, Caribbedatin s Development Ban r(CB),andmte coordinates financial support for these pro- UntdN ation Dharbevnaelopmen Prmammeupo grm and helps finance common services, (UND). Te Caibben ara ismadeup a particularly for the smaller countries in the countries that often have few common inter- East Caribbean Common Market. (2) ests. Countries in the Group include the mem- After a first formal meeting of the Group in bers of the Caribbean Common Market June 1978, a second meeting took place in (Caricomn),(1) as well as the Dominican Repub- Washington, DC in June 1979. Representa- lic, Haiti, and the Netherlands Antilles. The tie tta-etn eiwdteeooi Group is concerned with mobilizing capital tveathtmeinrvewdhecomc inflows to support the economic development efforts, particularly those involving regional M'The 13 members of the Caribbean Common Market are cooperation, of the countries in the area. Antigua. Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts-Nevis-Anguilla, The Bank, in cooperation with the other St. Lucia, St. Vincent, and Trinidad and Tobago. international agencies, has prepared a series of tOThe East Caribbean Common Market consists of Antigua, Dominica, Grenada, Montserrat, St. Kitts-Nevis-Anguiia, reports on individual countries and on issues St. Lucia, and St. Vincent. 70 The Year's Activities, by Region situation of the Caribbean countries during recipients of the 50 loans and credits approved. fiscal 1979. Though that situation had im- Transportation activities were the most im- proved during the past 12 months, progress portant in terms of the amounts lent; 21% of varied substantially from country to country. the total went to projects in this sector. In Barbados and St. Lucia led the countries of fiscal 1978, transportation accounted for but the Group in economic advances, while ad- 9% of lending in the Region. Projects in the justing their economies to the changing agriculture sector ranked second and ac- international economic situation. Jamaica and counted for 18% of the total. Urban projects, Guyana were able to comply with the main including water supply and sewerage, and financial targets of the economic programs power projects each made up 15 % of the total. they instituted in fiscal 1978; nonetheless, in- Development finance company (including vestment, production, and employment did not small-scale enterprises) projects accounted for increase as planned. The real growth of GDP 11 %; and 8% of the total went to industrial in the Dominican Republic was about 3.6% and mining projects. Program loans repre- in 1978, lower than in previous years; contin- sented 7% of the total, and the remaining 5% ued low sugar and mineral prices, combined was divided among projects for education and with declining coffee prices, contributed to a tourism. current account balance of payments deficit The program loans had an important place equal to 8% of GDP. In Haiti, the poorest in the Region's lending activities during the country in the hemisphere, the economy per- year, as operations were approved for Peru formed reasonably well, with GDP real ($115 million), Jamaica ($31.5 million), and growth in 1978 estimated at 5.5%, largely as Guyana ($10 million). In each case, these a result of a good harvest. loans were for the purpose of supporting na- During the meeting, new pledges, totaling tional programs to restore financial stability $183 million, for CDF type of financing, were and renew economic growth. The programs received. In addition, consensus was achieved had been worked out by the countries con- on the establishment of an Ad-hoc Advisory cerned in cooperation with both the Interna- Committee. To be formed by government tional Monetary Fund and the Bank, and thus representatives of recipient and donor coun- benefited from the financial support of both tries, the Committee will receive the regional institutions. In the cases of Peru and Guyana, proposals prepared by international institutions the program loans will finance a variety of in the various sectors. The Committee will hold needed imports, and, in so doing, are expected initial formal discussions on proposed regional to generate local currency funds to help fi- schemes, and will consult with other govern- nance priority projects in investment programs ments as necessary, thus providing a system- for the public sector. A previous program loan atic way of linking the technical work on to Jamaica (approved in December 1977) had regional matters with the policy makers in been of a similar kind, but the present, second member governments. program loan is directed mainly at establishing Other issues of a regional focus were also a revolving fund that will assure the supply of discussed and acted upon. These included an raw materials and other imported inputs agreement to prepare a proposal for a long- needed by Jamaican exporters of manufac- term regional export promotion program; to tured goods. establish a working group to prepare a plan In fiscal 1979, six projects for power de- of action for regional tourism promotion and velopment were assisted by the Bank. The development; and discussion of three schemes projects-two in Colombia, and one each in designed to help, specifically, the less devel- Brazil, Costa Rica, Haiti, and Honduras-in- oped countries of the Caribbean Community. volved a total of $346 million in loans and Those schemes involve food aid, a revolving credits. fund for agricultural inputs, and a basic needs The one credit, of $16.5 million, was to trust fund. Haiti, where the Bank continues to: (a) assist in the formulation of a national power devel- Bank and IDA Activities opment plan; (b) help the country develop the sector by using, to the extent possible, the Bank and IDA lending to the Region country's own energy resources; and (c) assist totaled $2,265 million in fiscal 1979, up from the national power authority to become more the $2,110 million provided in the previous efficient and financially sound. Through the fiscal year. Of the total, $32 million was lent expansion of one power station and seven sub- on IDA terms; these credits went to Bolivia, stations, the building of three new substations, Guyana, and Haiti. In total, 19 countries were the construction and rehabilitation of distribu- Latin America and the Caribbean 71 tion lines, and through staff training and the tion and drainage subprojects, and from $200 provision of consulting services, the Bank will to $1,400 as a result of the livestock sub- be able to continue to pursue these long-term projects. In Ecuador, an $18 million loan in objectives. support of the Tungurahua rural development Funds committed under co-financing ar- project aims at improving productivity, in- rangements with the Bank and IDA reached comes, and general living conditions of 16,000 $776 million, almost exactly the same as last poor rural families (about 83,000 persons). year's level, and 25% above the 1976-78 The project components include credit and the average. building of storage facilities to improve Each co-financed project attracted an aver- agricultural production; construction and im- age of about $37 million in co-financing during provement of rural roads; rehabilitation and the year, compared with about $52 million in expansion of irrigation works; rural electrifi- both fiscal 1977 and 1978. cation; and social services, such as the provi- During the year, 12 official agencies par- sion of potable water and health services. A ticipated in co-financing Bank-supported and $19 million loan to Panama is expected to im- IDA-supported projects. The most important prove the productivity of agrarian reform contributors were the industrialized countries settlements and small farmers and increase the of Europe, Canada, and the Inter-American production of key tree crops. Long-term financ- Development Bank. ing will be provided for the renovation of 1,500 hectares in coffee; for the renovation of 600 Agriculture and Rural Development hectares and the planting of an additional 1,900 hectares in cocoa; for the planting of During the fiscal year, 13 loans were ap- 1,000 hectares in bananas on land worked by proved for projects for agriculture and rural three agrarian reform groups; and for the development, more than in any other single planting of 3,000 hectares in oil palm, prin- sector. The Bank's approach to lending in this cipally on land worked by agrarian reform sector has increasingly emphasized income groups, and the construction of the first stage distribution, as well as strictly productive ob- of an oil processing plant. Included are con- jectives, particularly through more direct ap- sulting services to train local technicians to proaches to help small farmers. Lending of the care for these crops and to assist in operating more traditional type-e.g., broad credit pro- an evaluation system for assessing the impact grams aimed at reaching a large number of of the cocoa and coffee programs, and the pur- farmers on a national scale-can be effective chase of vehicles and equipment for local when sufficient infrastructure and the neces- extension staff. Direct beneficiaries will include sary institutional base exist. When this is not about 2,000 smallholder farmers and their the case, some areas tend to be bypassed by families (cocoa and coffee), and slightly more development. To reach such areas, where the than 1,000 farm families and local landless small farmers often live, it has been necessary laborers aided by agrarian reform legislation to design area development programs and (bananas and oil palm). projects. Their objective is to improve, simul- Experience indicates that in designing these taneously, agricultural productivity, supplies, and other rural development projects, it is roads, education, and other critical elements essential to keep in mind the ability to imple- influencing productivity and standards of liv- ment them effectively. Although the concept ing. Their success depends heavily upon syn- may be simple, the integrated approach is com- chronized and coordinated government action plex to implement and calls for a large and to provide all of the needed inputs and services. coordinated effort on the part of the country An increasing share of the Region's agri- and the Bank. As experience is gained by both cultural loans has been of this type. Dur- the borrowers and the Bank, it has been pos- ing fiscal 1979, loans were approved for such sible to design projects that promise to be projects in Bolivia, Brazil, Colombia, Ecuador, effective because they take into account the Mexico, and Panama. In Mexico, a $60 mil- particular practical constraints in each coun- lion Bank loan has been designed to increase try, while, at the same time, incorporating the agricultural and livestock production through broader objectives of improving the distribu- the execution of about 250 irrigation and tion of the benefits of growth. drainage and livestock subprojects that will benefit some 30,000 low-income families. Average annual incomes are expected to in- crease from the present $500 to $2,300 at full ()Co-financing data have been compiled from World Bank reports of projects at the time of their Board approval, development (four to five years) of the irriga- and do not reflect changes in amounts since that time. 72 The Year's Activities, by Region Transportation: Land and Air In Colombia, significant savings in costs for domestic and international air transport In its fiscal 1979 lending program for the through the more efficient use of aircraft and Region in the transportation sector, loans were improvements in the reliability of services are approved for road (Brazil, Jamaica, Mexico, expected to accrue as a result of a $61 million Paraguay, and Uruguay), air (Colombia and Bank loan in support of aviation develop- Honduras-as a tourism project component), ment. and rail transport (Argentina) development. The project includes: (a) improvements to A $120 million Bank loan will support the Bogota's airport so as to provide adequate more than $1,000 million highway investment more thn$100ilinhghaivscapacity for forecast traffic through the early program for the period 1979-82 of Mexico's 1990s; (b) construction of a new airport, to- Ministry of Human Settlements and Public gether with auxiliary facilities and equipment, Works. Road transport plays a predominant getr th auxiliry facities and role in the development of Mexico, and the near to, and serving the city of Medellin; and realeizatin ofthe ecountrs development o bjec- (c) improvements needed at the Cartagena air- realization of the country's development ong port to enable the existing airport to accommo- tives over the next decade will depend, among date projected traffic through 1990. Technical other factors, on the continued availability of dastancted graffic th r t tehnil reliale ad' efectie roa trasport The assistance and special air transport studies will reliable and effective road transport. The also be financed. Bank's loan will help implement an effective A $96 million Bank loan to Argentina aims highway program that takes into account the at helping the government realize a major financial constraints imposed on the Ministry- objective: to organize the railways into an a substantial portion of public resources has efficient long-haul bulk carrier, capable of been allocated to the agriculture and energy efficiently aiding its attempt to increase agri- sectors-and that gives special emphasis to the cultural exports. Through the rehabilitation of maintenance and improvement of existing track, bridges, communications equipment. roads. The direct impact of the Ministry's pro- and wagons, and the purchase of line, shunting gram will be felt first by the road transport locomotives, passenger coaches, specialized industry (a major employer of semiskilled and wagons, and spare parts, as well as the pro- unskilled labor). Savings on the operations of vision of technical assistance, it is hoped that not-for-hire freight vehicles as a result of the the Argentine Railways' financial dependence, project will directly reduce production costs, through subsidies, on the government might be and savings by for-hire trucks and buses are reduced, if not eliminated. expected, in the long rtin, to be passed on to the rest of the economy. 73 Projects Approved for Bank and IDA Assistance in Fiscal 1979, by Sector Agriculture and Rural Development Acronyms Used in This Section AFGHANISTAN: IDA-$16.5 million. ADF-African Development Fund The incomes and living standards of some AfDB-African Development Bank 62,000 farm families-including 3,000 to AFESD-Arab Fund for Economic 4,000 nomad and transhumant families-will and Social Development be raised through investments in irrigation sys- AsDB-Asian Development Bank tems, agriculture extension, veterinary services, CABEI-Central American Bank for establishment of 150 cooperatives, and a range Economic Integration improvement center. About 400 kilometers of CCCE-Caisse Centrale de Cooperation minor roads will also be upgraded and water Economique supply systems installed in about 100 villages. CDB-Caribbean Development Bank Co-financing is being provided by the UNDP CDC-Commonwealth Development ($1 million) and IFAD ($13 million). Total Corporation cost: $39 million. CIDA-Canadian International ALGERIA: Bank-$42 million. To ensure Development Agency an increased supply of animal protein in the EDF-European Development Fund country, about 150,000 head of sheep will be EEC-European Economic Community fattened on 120 farms located in the under- EFTA-European Free Trade utilized high plateau areas of the country. Cold Association storage and meat processing facilities will be EIB-European Investment Bank built to handle increased imports of meat. FAC-Fonds d'Aide et de Coop&ration Technical assistance is included. Total cost: GTZ-German Technical Assistance $105 million. Corporation BANGLADESH: IDA-$19 million. An in- IDB-Inter-American Development crease in foodgrain production sufficient to Bank meet the needs of approximately 300,000 peo- IFAD-International Fund for ple will be made possible by a flood control and Agricultural Development drainage project designed to benefit three of KFAED-Kuwait Fund for Arab the country's poorest areas. Net farm incomes Economic Development will increase by 40% to 100% and a net an- KfW-Kreditanstalt fur Wiederaufbau nual savings of $12 million in foreign exchange NORAD-Norwegian Agency for is expected. Total cost: $28 million. International Development BANGLADESH: IDA-$6 million. Some ODA-Overseas Development 600 fisherman families will benefit through an Administration agriculture development program focusing on OECF-Overseas Economic a cluster of six underexploited lakes. Carp pro- Cooperation Fund duction will be increased and hatchery facili- OPEC-Organization of Petroleum- ties, access roads, water supply facilities, tele- Exporting Countries phone services, and electricity will be financed. SFD-Saudi Fund for Development Total cost: $7.5 million. SIDA-Swedish International BOLIVIA: IDA-$3 million. Credit will be Development Authority provided for on-farm investment, about 50 UNDP-United Nations Development kilometers of feeder roads improved, potable Programme water supply and waste disposal facilities built, UNIDO-United Nations Industrial and technical assistance provided to help im- Development Organization prove the living standards of some 6,000 fami- USAID-United States Agency for lies living in the Altiplano. Co-financing ($4 International Development million) is being provided by IFAD. Total cost: WFP-World Food Programme $9.3 million. BRAZIL: Bank-$40 million. An integrated package of credit, extension, research, and seed 74 Projects Approved, Bank and IDA, by Sector supply will benefit 15,540 small farmers in est segments of the population-the M'Bororo Pernambuco state. Social and physical infra- herdsmen-will be improved. Co-financing will structure will benefit 40,000 families in the be provided by the EEC Special Action Ac- project area, and technical assistance will help count ($500,000), IFAD ($2.5 million), and the raise the production of 2,700 small nonfarm ADF ($3.3 million). Total cost: $11.4 million. enterprises and create additional employment COLOMBIA: Bank-$20 million. The pro- opportunities. Total cost: $116.7 million. ductivity, employment, and incomes of about BRAZIL: Bank-$28 million. About 3,000 7,600 farm families will increase from land re- families, mostly with incomes below the abso- form and colonization programs. Credit for on- lute poverty level, and living in Alagoas and farm development, as well as for up to about Sergipe states, will benefit through the devel- 60 small agro-industries will be provided. Con- opment of cooperatively owned family farm sultant services, training, and equipment pro- plots, irrigation facilities, and education and vided to the Colombian Institute for Agrarian health services. Total cost: $74.7 million. Reform will also be financed. Total cost: $50 BRAZIL: Bank-$26 million. The living million. standards of about 8,400 farm families in Ser- CYPRUS: Bank-$11 million. The incomes gipe state will be raised through the expansion of some 400 farm families will increase and of agricultural extension services, improved about 470 additional jobs will be created for health and sanitation facilities, upgrading of farm workers through an irrigation project feeder and access roads, and the construction designed to develop fruit and vegetable pro- of marketing facilities. Total cost: $76 million. duction in a previously rainfed area. Other BURMA: IDA - $34.5 million. Some irrigation facilities and two dams will be con- 19,500 farm families will benefit from a proj- structed and more than 300,000 persons will ect designed to protect existing cultivated areas be provided with potable water. Co-financing from floods and saline water inundation and ($5.3 million) is being provided by the reclaim abandoned paddyland in lower Burma. KFAED. Total cost: $30.1 million. The project replicates an earlier one approved DOMINICAN REPUBLIC: Bank - $27 in June 1976. Annual incremental production million. The living conditions of some 3,200 from the project at full development is esti- rural families will be directly improved and mated at 90,000 tons of rice, 2,000 tons of jute, another 13,000 families will indirectly benefit and 19,000 tons of pulses, groundnuts, and through the expansion and rehabilitation of the other crops. Total cost: $56 million. country's existing irrigation system. On-farm BURMA: IDA-$4.5 million. Fifteen gov- development works, extension and agrarian re- ernment rubber estates will be rehabilitated, form services, equipment, and consulting serv- rubber processing capacity expanded, and staff ices will also be included. Total cost: $50.6 training and technical assistance provided. By million. 1993-94, incremental production is expected to ECUADOR: Bank - $18 million. Some reach 3,600 long tons, valued at $3.3 million 16,000 rural families living in Tungurahua annually. Co-financing is being provided by the province will benefit from the provision of UNDP ($600,000). Total cost: $8.7 million. agricultural support services, including credit, BURUNDI: IDA-$4.3 million. Through the rehabilitation and expansion of irrigation the establishment of 30 nurseries in rural com- facilities, the construction of roads and electri- munes for the production of eucalyptus seed- fication networks, and the provision of potable lings for farmers, a 2,000-hectare eucalyptus water and health services. Total cost: $30 plantation, and a 5,000-hectare pine planta- million. tion, and through a program of technical assist- GREECE: Bank-$25 million. The con- ance and training, the supply of fuelwood and struction and improvement of forest roads, the building poles will be increased, and a sound establishment of industrial plantations and basis will be set for a long-term forestry devel- seedling nurseries, and the provision of logging opment program. Studies and trials will be equipment, transport and housing facilities, carried out, in particular, to improve charcoal and training programs are part of a long-term production. Co-financing is being provided by program to introduce intensified forest man- the EEC Special Action Account ($1.2 mil- agement in the northwestern and western sec- lion), the UNDP ($700,000), and FAC ($1.9 tions of the country. About 50,000 villagers, million). Total cost: $8.83 million. forest owners, and logging cooperative mem- CENTRAL AFRICAN EMPIRE: IDA- bers will benefit.'Total cost: $144.6 million. $2.5 million. Livestock production will be de- GUYANA: Bank-$10 million. Through veloped and the nutrition and living conditions the establishment of logging and sawmilling of about 50,000 people from one of the poor- operations to produce 17.4 million board feet Agriculture and Rural Development 75 of sawn timber, export earnings in the forestry provided. Total cost: $53.4 million. sector may be increased from $3.9 million to INDIA: IDA-$23 million. In Uttar Pra- $11 million by 1982. Other project compo- desh, tree plantations will be established on nents include port facilities, a power plant about 52,000 hectares of land along roads, based on waste wood, and a township for some rails, and canals, on village commonlands un- 1,500 people. Co-financing is to be provided suitable for cropping, and on degraded forest by the EDF ($7 million) and the IDB ($5 mil- reserves in need of rehabilitation. The trees lion). Total cost: $30.5 million. will provide a much needed source of energy to INDIA: IDA-$ 129 million. Existing irri- the villages, raw materials to cottage industries, gation systems will be modernized and ex- and greater stability to the environment. Total panded to increase the annual production of cost: $44.8 million. foodgrain and cotton. A foreign exchange INDONESIA: Bank-$90 million; IDA- savings of about $160 million annually is $67 million. Some 30,000 of the country's expected, and employment for some 40,000 poorest families will be resettled on newly farm workers and an additional 30,000 other created farms in Sumatera. Upland crop pro- workers will be generated. Total cost: $257.5 duction will be made possible and employment million. opportunities generated. Co-financing ($5.5 INDIA: IDA-$1 11 million. Haryana state million) will be provided by the EEC Special will be helped to complete modernizing (mainly Action Account. Total cost: $242 million. by canal lining) about 30% of its surface INDONESIA: Bank-$77 million. About irrigation systems. In addition, supplemental 425,000 families will benefit and food produc- groundwater will be developed, development tion should increase by 425,000 tons yearly of irrigated agriculture in the Jui Lift Irriga- from a twelfth irrigation project designed to tion Command Area will be accelerated, pro- assist the government's program of upgrading duce markets and village link roads will either further its irrigation systems and, through the be constructed or improved, drinking water improvement of access roads, facilitating the will be provided to about 175 villages, and movement of agricultural products, inputs, and technical assistance will be furnished. Total services. Total cost: $118.5 million. cost: $222 million. INDONESIA: Bank-$50 million. Through INDIA: IDA-$30 million. Some 5.7 mil- a flood control project in the lower Cimanuk lion farm families will benefit through the con- basin, the loss of lives and damage to property struction of adequate storage facilities needed will be minimized. The resulting increase in by cooperatives in three states. The National rice production is expected to raise farm in- Cooperative Development Corporation will be comes considerably. Total cost: $77 million. strengthened, and about 46,000 man-years of IVORY COAST: Bank-$18 million. By employment will be created during the con- providing for land clearing and preparation of struction period. Total cost: $63.9 million. 20,000 hectares of high forest for replanting INDIA: IDA-$27 million. Research on with forest trees; planting and maintenance higher-yielding, more resistant seed varieties of 22,000 hectares of existing plantations; and and improved cropping patterns will help farm- with technical assistance to the Ministry of ers increase production of crops. A permanent Water and Forests; forest management plan- mechanism for appraisal, financing, and super- ning and operations will be improved, timber vision of regional research projects and the production increased, and additional employ- facilities to provide technical assistance to less ment created. Co-financing ($12 million) is developed institutions will be created in the being provided by the CDC. Total cost: $39.4 Indian Council for Agricultural Research. million. Total cost: $54 million. IVORY COAST: Bank - $7.6 million. INDIA: IDA-$25 million. Crop produc- Through a project aimed at developing 3,000 tion and farm incomes will increase in Gujarat, hectares of smallholding rubber groves, 2,000 Haryana, and Karnataka states as a result of a hectares of a nucleus industrial estate, and 500 project designed to provide improved extension hectares of smallholdings in association with services to farm families and to increase the the estate-all in the southeast part of the ability of the central government's Directorate country-the government's program for agri- of Agricultural Extension to provide continu- cultural diversification and for rural develop- ing technical and administrative assistance to ment in the southeast will be furthered, and states seeking to reform and strengthen their experience gained in large-scale smallholder agricultural extension services. About 6.8 mil- rubber production. Co-financing is being pro- lion farm families in the three states will be vided by the CDC ($3 million) and the CCCE serviced by the reformed extension services ($1.5 million). Total cost: $16.1 million. 76 Projects Approved, Bank and IDA, by Sector JAMAICA: Bank-$12 million. Through with increased staff, buildings, equipment, staff the transfer and acquisition of about 20,000 training, and technical assistance, and through hectares of land for pine plantations and for the establishment of a 1,600-hectare industrial new plantations, replanting, and plantation trial plantation of fast-growing commercial maintenance within that area, by constructing species, the FDA will be strengthened, a proper a sawmill and rehabilitating another, by estab- framework for forestry development and man- lishing forest roads, and through the develop- agement will be introduced, and Liberians ment of road building, logging, and log trans- trained in forestry sector work. The AfDB and port operations, the country will be helped in the GTZ will provide co-financing in the its attempt to become self-sufficient in wood amounts of $5 million and $1.8 million, re- and wood products. Technical assistance is in- spectively. Total cost: $17.5 million. cluded. Co-financing is being provided by the MADAGASCAR: IDA-$12 million. The CDC ($11.56 million) and the ODA ($1.48 average annual incomes of some 3,200 farm million). Total cost: $31.72 million. families will increase from $220 to about $800 KENYA: Bank-$72 million. Some 10,800 through the completion of an irrigation system smallholder families will benefit and $30 mil- that serves 10,000 hectares in the lower Man- lion in foreign exchange will be saved yearly goky valley. Rice and cotton production will be through a sugar rehabilitation program that developed, and new employment opportunities includes the improvement of outgrower and created for approximately 8,500 people. IFAD nucleus estate sugar production, factory reha- is providing co-financing in the amount of $6.5 bilitation and expansion, provision of modest million. Total cost: $26.4 million. staff housing, drainage, irrigation, and re- MALAWI: IDA-$22 million. The consoli- search. The AfDB is providing co-financing in dation phase of the Lilongwe Land Develop- the amount of $6 million. Total cost: $128.4 ment Programme will be completed and new million. smallholder farming schemes developed. The KENYA: IDA-$27 million. Agricultural annual incomes of about 90,000 farm families credit, extension services, and training facili- will increase by at least 40%, and approxi- ties for factory staff will help up to 70,000 mately 4 million man-days of employment will coffee farmers throughout the country increase be generated. Co-financing is being provided their productivity and incomes. About 15,000 by CIDA ($2.6 million), the EDF ($13.1 mil- hectares of neglected coffee plantings will be lion), the ODA ($11.7 million), and the GTZ rehabilitated, and more than 6,000 farm jobs ($6.6 million). Total cost: $66 million. created. Heavy river pollution by coffee factory MALAYSIA: Bank-$31 million. The pro- effluents will also be eliminated. Co-financing ductivity and incomes of some 60,000 small- ($15 million) is being provided by the CDC. holder farm families in the Muda irrigation Total cost: $62.2 million. area will be raised through improved irrigation KENYA: IDA-$ 13 million. This first stage and drainage systems, construction of farm of a long-term program for development of roads, and provision of agricultural supporting mixed farming in Narok district to utilize bet- services. Total cost: $69 million. ter a high potential agricultural area includes MALAYSIA: Bank-$26.5 million. The provision of agricultural credit, the improve- productivity and incomes of some 24,000 ment of extension services, development of smallholder families in Perak state will be feeder roads, soil conservation measures, and increased through the rehabilitation and im- a wildlife control program. CIDA is providing provement of existing irrigation systems. Em- co-financing in the amount of $1.4 million. ployment opportunities will be generated for Total cost: $18.8 million. about 2,500 agricultural laborers, and the LAO PEOPLE'S DEMOCRATIC REPUB- reduction of rice imports will create a net LIC: IDA-$10.4 million. More than 42,000 foreign exchange savings of approximately $15 poor farm families will benefit from an in- million annually. Total cost: $60.2 million. crease in rice, feedgrain, and vegetable pro- MALAYSIA: Bank-$19.5 million. Some duction in Vientiane province. Improved seeds 19,200 coconut smallholders will receive tech- will be provided, a state feedgrain farm devel- nical assistance, planting materials, fertilizers, oped, and agricultural technicians and special- livestock, and livestock production facilities ists trained. Co-financing is being provided by from a project designed to improve the pro- the EEC Special Action Account ($2.7 mil- ductivity and incomes of one of the poorest lion) and the UNDP ($1.3 million). Total segments of the society. The beneficiaries' an- cost: $14.4 million. nual incomes are estimated to increase from LIBERIA: IDA-$6 million. By providing about $800 to over $1,700 at full development. the Forestry Development Authority (FDA) Total cost: $44.2 million. Agriculture and Rural Development 77 MALDIVES: IDA-$3.2 million. The in- Co-financing is being provided by IFAD ($25 comes of some 5,000 fisherman families will million) and the KfW ($50 million). Total increase by about 60% through increased fish- cost: $737.2 million. eries production. The mechanization of about NEPAL: IDA-$14 million. An irrigation 500 sailing vessels and the construction of five system will accelerate agricultural develop- engine maintenance and repair centers are in- ment in an area now heavily dependent on cluded in the project, as well as technical as- rainfall. Landless laborers and smallholders, sistance to implement a training program for who account for about two-thirds of the ap- skippers and master fishermen. Co-financing proximately 70,000 farm population in the ($300,000) is being provided by the UNDP. area, will also benefit by the generation of Total cost: $3.9 million. 2,000 jobs. Total cost: $17 million. MALI: IDA-$4.5 million. A three-year NEPAL: IDA-$ 11 million. Agricultural program of technical assistance and a pilot pro- and livestock production that will benefit more gram of rehabilitation works (irrigation infra- than 53,000 families living in three remote structure) will be carried out. The technical districts of the Mahakali hills will be in- assistance aims at strengthening the Office du creased through minor irrigation development, Niger-the country's largest productive enter- strengthening of agriculture extension and ani- prise-which is a major producer of rice and mal health services, training, and improved sugar. Total cost: $5.2 million. availability of farm inputs. Investments will MALI: IDA-$4.5 million. The supply of be made in erosion control, health care, im- fuelwood and building poles to urban areas proved water supplies, education and commu- will be increased through the establishment of nity facilities, and a study of cottage industry more than 3,400 hectares of rainfed tree plan- potential and prospects will be undertaken. Co- tations. Modern forestry techniques will be financing ($1.1 million) is being provided by promoted among the rural population and the UNDP. Total cost: $13.5 million. three forestry nurseries will be established and NIGER: IDA-$ 15 million. Some 30,000 another rehabilitated. FAC and the CCCE are people will benefit from a project designed to providing co-financing in the amounts of $1.3 expand cereal and vegetable production along million and $1.4 million, respectively. Total the Niger river and create an appropriate struc- cost: $9.4 million. ture for the development of the country's irri- MEXICO: Bank-$92 million. The produc- gation program. Agricultural services will also tivity of 196,000 hectares of farmland in Rio be provided to farmers established on a neigh- Sinaloa and Rio Fuerte districts will increase boring irrigation scheme. The KfW is provid- through the construction and rehabilitation of ing co-financing in the amount of $6 million. irrigation and drainage systems and the recla- Total cost: $21 million. mation of saline lands. More than 20,000 NIGER: IDA-$ 12 million. More than families will benefit from increased incomes 200,000 farm families will benefit from a live- and better employment opportunities. Total stock development project designed to provide cost: $249.7 million. a package of services to pastoralists, including MEXICO: Bank-$60 million. The average animal health supplies and advice on animal annual incomes of some 30,000 low-income husbandry and range management techniques, farm families will be increased substantially selective extension of stock water points, and through 250 irrigation, drainage, and livestock human health services and foodstocks. The subprojects. Approximately 8,300 man-years project also includes the constitution of formal of permanent employment and 11,700 man- associations of pastoralists, delineation of pas- years of employment during the construction toral units, and construction and operation of period will be created. Total cost: $143.7 five pastoral centers that would serve as the million. main structure for delivery of these services. MEXICO: Bank-$25 million. Supplemen- Total cost: $15 million. tal finance will be provided the Rio Panuco NIGERIA: Bank-$31 million. More than Irrigation Project, approved in fiscal 1974, 22,000 hectares of commercial gmelina (tropi- bringing the loan amount to $102 million. cal hardwood) plantations in Ondo and Ogun MOROCCO: Bank-$70 million. The states, and 1,600 hectares of pine and eucalyp- standard of living for about 475,000 farm tus trials in Anambra state will be established, families will be improved through increased and the state and federal forestry services agricultural productivity, decreased depend- strengthened. In addition, the living and work- ence on imports, expansion of the Caisse Na- ing conditions of 1,500 forestry workers and tionale de Cr6dit Agricole, and the creation of their families will be improved, and food pro- about 115,000 man-years of rural employment. duction increased. Total cost: $79.3 million. 78 Projects Approved, Bank and IDA, by Sector NIGERIA: Bank-$27 million. Farm sup- PARAGUAY: Bank-$25 million. By sup- port services-extension advice, improved porting on-farm development of 940 ranches seeds and fertilizers, and physical infrastruc- and small livestock farms through the provision ture-will benefit some 90,000 families in of credit, helping consolidate the development Kwara state. Technical assistance will be pro- of 16 land settlement schemes through the con- vided, as well as funding for feasibility studies struction of rural roads and provision of credit relating to 13 other proposed (post-1982) agri- for 3,000 farmers, and improving the food cultural projects in the country. Total cost: crop marketing system through the construc- $64.4 million. tion of a wholesale market in Asuncion, the NIGERIA: Bank-$23 million. About country's export capacity will be increased, 60,000 farm families living in the southern small farmers' incomes will be improved, and part of Niger state will benefit from an agricul- additional employment will be generated. Co- tural development project that provides for financing ($1.2 million) is being provided by extension advice, crop protection measures, the UNDP for the technical assistance ele- fertilizers, better seeds, improvement and ments of the project. Total cost: $51.8 million. maintenance of feeder roads, and the rehabili- PHILIPPINES: Bank-$35 million. Nearly tation and improvement of existing irrigation 5 million rural families, among them a large schemes. Total cost: $64.4 million. number of low-income smallholders, will bene- NIGERIA: Bank-$9 million. Management fit by the expansion of agricultural extension skills throughout the agricultural sector will be services. The project will help improve crop upgraded by establishing facilities for the train- and livestock farming practices, and provide ing of managers and supervisors employed in for better infant nutrition, employment oppor- a wide range of agricultural institutions. Furni- tunities, and home management and cottage in- ture, equipment, and vehicles will be provided, dustry skills. Total cost: $70.1 million. as well as technical assistance. Total cost: PHILIPPINES: Bank-$21 million. About $18.2 million. 77,000 people will benefit directly from in- PAKISTAN: IDA-$60.million. Irrigation creased agricultural production and conse- improvements, drainage relief, and the recla- quent employment as a result of a second stage mation of abandoned lands in North West Fron- irrigation scheme that forms a part of the tier province will be provided in an effort to Magat river multipurpose project. A dam, irri- increase agricultural productivity in the region. gation and drainage facilities, and pumping The project also includes the improvement and stations will be built, consulting services pro- strengthening of agricultural extension services vided, and vehicles and equipment procured. and research. Co-financing ($25 million) is IFAD is providing co-financing in the amount being provided by CIDA. Total cost: $150 of $10 million. Total cost: $62 million. million. PHILIPPINES: Bank-$ 16.5 million. PAKISTAN: IDA-$9 million. Farmers in About 28,000 families will directly benefit the 12 rural districts of Sind will benefit from from increased rice and maize production and an increase in foodgrain production that is ex- the expansion of employment opportunities for pected to result from the reorganization and small farmers spread throughout the country, strengthening of agricultural extension services but concentrated in the central Luzon area. and research. Co-financing ($600,000) is being The equivalent of 11,900 man-years of em- provided by the UNDP. Total cost: $14.3 ployment, suited to the rural poor and the million. landless, will be generated at full development. PANAMA: Bank-$19 milliorn. The pro- Total cost: $37 million. ductivity and incomes of more than 2,000 ROMANIA: Bank-$75 million. A second small farmers and about 1,000 agrarian reform livestock project will increase pork production beneficiaries and landless laborers will be im- through the construction of slaughterhouses, proved through a project designed to increase cold storage and processing facilities, and the the production of coffee, cocoa, bananas, and addition of new fattening and production oil palm. Total cost: $38 million. farms. A line of credit will be provided to in- PAPUA NEW GUINEA: IDA-$20 mil- dividual producers, and new jobs for 9,800 lion. A rural development project, to be located people will be created in production and proc- in Southern Highlands province-one of the essing plants. Co-financing in the amount of country's poorest-will provide improved ac- $100 million is expected to be provided by cess to education and health services, will lay private foreign commercial banks. Total cost: the foundation for improved agricultural prac- $435.5 million. tices and nutrition, and will help raise cash in- ROMANIA: Bank-$70 million. Agricul- comes of farmers. Total cost: $32.2 million. tural production will be increased and stabi- Agriculture and Rural Development 79 lized in the Mostistea and Calmatui areas decrease in livestock mortality through im- through the construction of irrigation and proved animal disease control. Co-financing drainage systems and other related facilities. is being provided by IFAD ($15 million), the Total cost: $409.2 million. ODA ($18.5 million), and the GTZ ($1.9 RWANDA: IDA - $8.7 million. Some million). Total cost: $56 million. 65,000 low-income people living in the Mutara SYRIAN ARAB REPUBLIC: Bank-$30 region will benefit from soil conservation meas- million. An estimated 23,000 farm families ures aimed at preserving the production poten- will benefit through improved agricultural pro- tial of the area and increasing agricultural duction on about 75,000 hectares along the production, the development of efficient ani- lower Euphrates river. Tubewells, pumping mal health and production services to increase stations, surface drains, access roads, and trans- range and herd productivity, and the provision mission lines will be financed by this drainage of social and technical services. Co-financing project aimed at halting the spread of salinity. ($1.6 million) will be provided by the EEC Total cost: $52.5 million. Special Action Account. Total cost: $11.8 SYRIAN ARAB REPUBLIC: Bank-$21 million. million. A new oilseed processing factory will SOMALIA: IDA-$10.5 million. Agricul- be constructed in the northeast and three tural extension services will be strengthened others in the northwest will be modernized in and a farm management advisory service estab- an effort to increase processing capacity. In lished that will directly benefit some 195,000 addition, an increase in cottonseed cake by- individual farm families, as well as farm work- products will provide some 500,000 livestock ers on state and cooperative farms. Co-financ- farmers with an inexpensive supply of feed for ing is being provided by the EEC Special the dry season. Consultant services and tech- Action Account ($1.5 million), USAID ($7.6 nical assistance are also included. Total cost: million), and the ADF ($8.9 million). Total $43.8 million. cost: $32.4 million. THAILAND: IDA - $25 million. The SOMALIA: IDA-$8 million. Better vet- standard of living of some 21,500 rural fami- erinary services, the provision of nonformal lies in the north of the country will be im- and formal education, improved livestock proved through increased agricultural produc- water supplies, and the strengthening of the tion, the provision of social infrastructure such National Range Agency's administration is as education and health facilities, and forestry expected to improve rangelands and livestock development that will provide fuel and build- productivity, and increase the incomes of some ing materials. Co-financing will be provided 400,000 pastoralists. Co-financing is being pro- by Australia ($900,000) and the ODA vided by IFAD ($9 million), USAID ($15 ($300,000). Total cost: $47 million. million), the ODA ($4 million), and the WFP THAILAND: Bank-$17.5 million. Ap- ($4.3 million). Total cost: $46.3 million. proximately 21,000 farm families will benefit SRI LANKA: IDA-$20 million. Some from an irrigation project designed to make 170,000 farm families in Kurunegala district year-round cultivation possible in the north- will benefit through the rehabilitation of exist- east part of the country. Additional employ- ing irrigation schemes and from stepped-up ment-about 4.3 million man-days-will be programs of replanting and intercropping of generated, and annual family incomes are ex- smallholder coconut plantations. Credit and pected to increase from $500 to about $2,000 transport facilities will be improved, as well at full development. IFAD is providing co- as rural electrification, health care, educa- financing in the amount of $17.5 million. Total tional facilities, and drinking water supplies lo- cost: $80 million. cated in remote areas. Total cost: $30 million. TOGO: IDA-$ 14 million. Through the SRI LANKA: IDA-$15.5 million. As replanting of 7,500 hectares in coffee and many as 1.4 million farm families will benefit 4,000 hectares in cocoa to produce increased from a project that will help introduce a exports, better extension services, and rehabili- "training and visit" extension system through- tation of 300 kilometers of feeder roads, the out the country. In addition, adaptive research incomes of some 17,000 farm families will be will be strengthened, and the training of ex- increased, as well as the government's foreign tension officers improved and expanded. Total exchange earnings. Co-financing is being pro- cost: $22.4 million. vided by the EEC Special Action Account SUDAN: IDA-$15 million. Some 44,000 ($4.6 million), the CCCE ($7.7 million), and subsistence farmers in the southern region of FAC ($3.5 million). Total cost: $34.2 million. the country will benefit from increased pro- TUNISIA: Bank-$28.5 million. By pro- duction of foodcrops, better nutrition, and a viding new boats and through the construction 80 Projects Approved, Bank and IDA, by Sector of urgently needed port infrastructure and Libya is also expected to participate in the shore facilities, a second fisheries project will financing. Total cost: $32 million. help increase coastal fisheries production by YUGOSLAVIA: Bank-$82 million. Irri- 8,000 tons a year. The incomes of some 2,000 gation water will be provided to increase fishermen will be increased and about 2,000 agricultural production on 20,300 hectares, en- new jobs will be created. Total cost: $67.6 abling a more than fivefold increase in net farm million. incomes, as part of a long-term irrigation de- TURKEY: Bank-$85 million. Grain han- velopment program for the Pelagonija plain. dling and transport efficiency will be improved Approximately 5,500 individual farm families and the costs minimized through the construc- and 3,600 families in social sector agriculture tion of port storage facilities, the improvement and processing will benefit. Total cost: $188.8 in rail-handling equipment, and training of silo million. staff in grain marketing and silo management YUGOSLAVIA: Bank-$55 million. One and operations. Total cost: $206.1 million. of the least developed rural areas in the coun- VIET NAM: IDA-S60 million. Some try will benefit from a project designed to 21,000 farm families, or about 110,000 peo- extend agricultural production, provide im- ple, will benefit from an irrigation project in proved livestock and machine repair services, the southwest that includes the construction and increase the processing capacity for meat, of an earth dam and its appurtenant works on milk, fruit, and vegetables. The average net the Saigon river, and the construction of a incomes of some 12,000 farm families will be gravity irrigation system for about 42,000 hec- raised by about 120%, and more than 4,500 tares of currently rainfed land, including an new jobs will be created. Total cost: $203.8 adequate drainage network, inspection and million. access roads, and two low-lift pumping sta- ZAMBIA: IDA-$6 million. The real in- tions. About 30,000 seasonal jobs will be comes of an estimated 600 smallholder fam- created during the construction period. The ilies in Northern province will be increased KFAED and the OPEC Special Fund, as well by the rehabilitation and development of cof- as the Netherlands, are helping co-finance the fee production. A similar increase in North- project, with loans of $10 million each. Total western province is also expected. National cost: $110 million. coffee research institutions will be strength- YEMEN ARAB REPUBLIC: IDA-$15 ened, and annual employment for about 64 million. The incomes and living conditions of skilled and semiskilled staff and 900 unskilled some 53,000 persons in the Wadi Mawr area workers will be provided. Total cost: $8.3 will be improved through the construction of million. flood diversion structures and feeder canals, and the installation of tubewells. Gravel ac- Education cess roads will be constructed to reduce the area's isolation, and agricultural credit and AFGHANISTAN: IDA-$21 million. Ba- extension and veterinary services, as well as sic education will be expanded and improved technical assistance, will be provided. IFAD, through the construction of teacher training the EEC Special Action Account, the KFAED. institutes, technical support in education plan- the KfW, and the ODA are providing co- ning, school mapping and administration, and financing in amounts equivalent to about $12 through a training program. Feasibility studies million. $3 million, $13 million, $9 million, and preinvestment designs for specialized train- and $1 million, respectively. Total cost: $87.6 ing institutions are also included. Total cost: million. $32 million. YEMEN, PEOPLE'S DEMOCRATIC RE- BANGLADESH: IDA-$25 million. The PUBLIC OF: IDA-$10 million. A fisheries number of skilled and semiskilled workers will and general cargo port and fish processing and be increased from about 2,000 annually to over storage facilities will be constructed at Nishtun 10,000 when the project is completed, through -located in one of the poorest and most re- the construction of training centers, provision mote regions of the country-to help raise of furniture, equipment, training materials, directly the living standards of some 10,000 and technical assistance. Total cost: $32.4 people and benefit indirectly the entire popu- million. lation of 60,000 in the area by improving its BARBADOS: Bank-$9 million. An edu- accessibility. A 19-kilometer road will be built cation project will enhance the effectiveness to link the new port with nine area fishing and efficiency of the education system, make villages. Co-financing is being provided by the possible the effective application of modern EEC Special Action Account ($3 million); and relevant curricula, and will provide for Education 81 more equitable distribution of education op- in disadvantaged rural areas will be improved portunities. The project also will strengthen and expanded through the construction of existing programs in management training and schools, provision of textbooks, improvement advisory services to small-scale enterprises, in teacher training facilities, and the establish- and introduce an in-plant worker-training pro- ment of a correspondence college for second- gram. Total cost: $14.5 million. ary school students who are unable to enroll EGYPT, ARAB REPUBLIC OF: IDA- or continue in the regular school system. Co- $40 million. A second education project will financing ($7.5 million) is being provided by improve the relevance of education, increase the EEC Special Action Account. Total cost: and upgrade training, and expand education $25.7 million. and training opportunities for the urban poor. MALAYSIA: Bank-$38 million. A fifth The construction of buildings and the provi- education project will help equalize the oppor- sion of furniture, equipment, and technical tunity for lower secondary education through- assistance are included. The ADF and the out the country by providing school places for United Kingdom are providing co-financing in about 46,500 children from low-income dis- the amounts of $8.9 million and $1 million, tricts. Five administration training institutes respectively. Total cost: $85.2 million. will be developed and a long-range plan for EL SALVADOR: Bank-$23.5 million. occupational training prepared. Total cost: Basic education and training opportunities $121.1 million. for the general population will be expanded MOROCCO: Bank-$113 million. Through through the construction, furnishing, and the construction, furnishing, and equipping of equipping of 356 schools, equipping of a teach- 11 technical secondary schools, a technical er training school, construction of textbook teacher training college, two higher institutes production facilities, the printing of about of technology, an institute of applied engi- I million textbooks and teaching guides, and neering, and an extension to Mohammedia technical assistance. Total cost: $33.6 million. Engineering College, the supply of middle- GUINEA: IDA-$8 million. This first edu- and higher-level technicians and engineers will cation project will increase the number of be increased so as to help meet the country's qualified instructors in secondary polytechnic urgent manpower needs. Total cost: $216.6 institutes and improve the training of skilled million. workers for the industrial and public works PAKISTAN: IDA-$10 million. Help in sectors of the country. The Ministry of Educa- developing the experimental first phase of a tion's educational planning and project imple- long-term program to effect improvements mentation capacity will also be strengthened. in the primary education system through Total cost: $8.9 million. strengthening of the teacher service, provision INDONESIA: IDA-$49 million. An effec- of instructional materials, assistance to develop tive system for managing and developing tech- improved materials and curricula, and pro- nician training, including the provision of six vision of classrooms, training facilities, and polytechnics that will increase the annual num- teachers' residences will be financed. Total cost: ber of graduates by 45%, will be established $17.2 million. to help meet the country's demand for engi- SENEGAL: IDA-$22 million. The project neering technicians. Four accountancy devel- is designed to: increase the supply of high- opment centers will also be established to and middle-level technicians and managers re- improve the quality of accountancy training quired for the modern agricultural and indus- and practices. Total cost: $104 million. trial sectors; improve and expand secondary INDONESIA: Bank-$42 million. By up- technical and vocational education; and im- grading 12 existing agricultural development prove the quality of primary education and schools and establishing five new national establish a solid base for its future expansion, schools in the same field, through the revision especially in rural areas. Co-financing will be of curricula, by establishing or upgrading provided by the CCCE ($4.5 million) and the 10 agricultural in-service training centers, and EEC Special Action Account ($4.5 million). through provision of technical assistance, the Total cost: $33.1 million. shortage of qualified middle-level manpower, TANZANIA: IDA-$12 million. A sixth which is one of the major constraints to the education project will help consolidate and implementation of the government's plans for strengthen the country's existing vocational the development of the agricultural sector, training program and will lead to an increase will be minimized. Total cost: $71 million. of about 70% over a five-year period in the MALAWI: IDA-$14.5 million. Access to output of middle-level accountancy manpower. primary and secondary education for students In addition, through adding 160 hostel places 82 Projects Approved, Bank and IDA, by Sector to each of four existing technical secondary be provided to the Oil and Gas Development schools, the potential of women's participation Corporation in an effort to increase the coun- at that level will rise from about 3% to try's domestic oil supply through the expan- 25% by 1983. Total cost: $14.4 million. sion of operations in existing fields and the THAILAND: IDA-$35 million. Job-ori- evaluation of recently discovered fields. Co- ented education will be provided to some financing is expected to be provided by CIDA 50,000 secondary students annually from dis- and the ODA in the amounts of $8 million advantaged economic areas. A national educa- and $12 million, respectively. Total cost: $73 tional radio network will be set up to help million. equalize the quality of, and expand access to, THAILAND: Bank - $4.9 million. The basic education to people living in remote project is the first phase in the development areas. Total cost: $70.3 million. of the country's natural gas potential and com- TRINIDAD AND TOBAGO: Bank-$20 prises preparatory work to enable construction million. Physical facilities for 9,320 primary of a gas pipeline by 1981. Project compo- students and 4,200 secondary students will be nents include project management, engineer- built, curricula will be reoriented to meet the ing, financial management, and training and needs of the labor market, and curriculum advisory services; and a study to confirm the research and development and teacher up- adequacy of gas reserves following delinea- grading facilities enhanced through a third tion drilling. Total cost: $5.71 million. education project designed to improve the TURKEY: Bank-$2.5 million. Financing quality and relevance of education and to cor- will be provided for a comparative evaluation rect inequalities in access to education. Total of enhanced oil recovery techniques to select cost: $54.6 million. an optimal oil recovery method to be applied YEMEN ARAB REPUBLIC: IDA-$10 to the Bati Raman oil field in the southeast million. Secondary schooling will be diversi- part of the country. The application of en- fied by providing agricultural and livestock hanced recovery techniques to this oil field secondary schools and extending public admin- provides the immediate possibility of increas- istration training through the construction of ing domestic oil production until exploration two regional training centers. Studies, laying results in the discovery and development of the basis for future projects in basic health new commercially exploitable reserves. Total services, health training, and postsecondary cost: $3 million. education, as well as improving educational planning in the Ministry of Education, will be Industrial Development and Finance prepared. Co-financing ($1 million) is being provided by USAID. Total cost: $21.4 million. CYPRUS: Bank-$5 million. Foreign ex- YEMEN, PEOPLE'S DEMOCRATIC RE- change-earning manufacturing industries, in- PUBLIC OF: IDA-$4 million. Three voca- cluding small-scale industries, as well as tourist tional training centers will be established and facilities, will be financed through a third de- equipped to train skilled and semiskilled work- velopment bank project that will cover about ers in the industrial, agricultural, and commer- 25% of the total foreign exchange needs of cial sectors. At full development, the annual the Cyprus Development Bank through mid- output from the institutions will be about 500 1981. skilled workers, or approximately 6% of the ECUADOR: Bank-$40 million. Support vocational training needs of the country. Total of the development of the country's capital cost: $4.4 million. market and additional long-term financing for industry will be provided through a fourth Energy development banking project. About 80 sub- projects related mainly to food processing, bev- EGYPT, ARAB REPUBLIC OF: Bank- erage, textile, and forest products will be $75 million. Part of the foreign exchange costs financed. of gathering, processing, and transporting gas GHANA: IDA-$19 million. Foreign ex- from oil fields in the Gulf of Suez will be change will be provided through the National financed in order to develop an energy source Investment Bank to expand and rehabilitate and increase the country's exportable surplus the country's manufacturing and agro-indus- of fuel oil and natural gas. Total cost: $167 trial capacity. Through the development of million. nontraditional exports and better domestic PAKISTAN: IDA-$30 million. Drilling linkages with agriculture and other sectors, services for development wells, surface facili- the long-term viability of the manufacturing ties, equipment, and consultant services will sector will be enhanced, and reliance on im- Industrial Development and Finance 83 ported inputs reduced. Co-financing is being eign exchange component of industrial proj- provided by the EEC Special Action Account ects. The IFC is making a share capital invest- ($6 million) and the EDF ($900,000). Total ment of $562,000. The project also seeks cost: $25 million. to improve the operational policies of INDE- HONDURAS: Bank-$15 million. The BANK and, through IFC's representation on amount of medium- and long-term loans avail- INDEBANK's board, to provide technical able to industries will be increased, and the assistance to management. Total cost: $18.9 capacity of participating financial intermedi- million. aries to select, appraise, and finance efficient MAURITANIA: IDA-$8 million. The projects built up. The project is also expected productivity and incomes of the country's dis- to create more than 4,000 new jobs. Total cost: advantaged populations in both rural and $28.4 million. urban areas will be increased through the pro- INDONESIA: Bank-$50 million. In sup- vision of financial and technical assistance to port of the Bank Pembangunan Indonesia's operations in three sectors-small and me- efforts to provide financial assistance to small dium-scale industries, artisans, and small-scale and medium-scale enterprises, this loan will irrigated agriculture. Total cost: $9.3 million. help cover a major portion of its foreign ex- MEXICO: Bank-$175 million. Foreign change requirements for the next two years. exchange will be made available to the Fondo Direct imports of machinery and equipment de Equipamiento Industrial to provide me- will be financed, as well as the foreign ex- dium- and long-term financing to industrial change component of domestically produced enterprises for machinery, services, and equip- capital goods, civil works, and the cost of ment related to investment projects in in- locally procured vehicles. dustry; in addition, a training program for IVORY COAST: Bank-$12.6 million. financial intermediaries and studies on human Long-term financing for small and medium- resources for future industrialization will be scale enterprises and artisans' cooperatives financed. will be provided. Employment for about 2,300 MOROCCO: Bank-$25 million. Develop- people will be generated, including 100 jobs ment finance will be provided to over 200 speopiley fo oe otr.small and labor-intensive firms, and at least specifically for women potters. 5,000 jobs will be created as a result of the JAMAICA: Bank-$7 million. The de- country's first integrated small industry devel- velopment of small-scale enterprises (SSEs) opment program. will be promoted by providing medium- and PANAMA: Bank-$15 million. Productive long-term credits to SSEs for investment and private and public sector enterprises in the working capital needs, and by strengthening manufacturing, services, and tourism sectors institutions (both commercial banks and a will be able to acquire fixed assets and work- newly created institution, the Small Enterprise ing capital as a result of funds provided them Development Corporation) by providing finan- by the Corporaci6n Financiera Nacional cial and technical services to them. Total cost: (COFINA). Up to $1 million will be ear- $11.65 million. marked for supporting a small-scale industry KOREA, REPUBLIC OF: Bank-$100 lending program. Technical assistance to million. This seventh loan to the Korea De- COFINA is included. velopment Finance Corporation (KDFC) will PHILIPPINES: Bank-$25 million. About help cover the foreign exchange requirements 11,500 new jobs will be created in rural and of subprojects to be financed by KDFC over urban areas, and 510 projects will benefit from the next two years. Twenty million dollars is support given to the Industrial Guarantee and earmarked for financing small and medium- Loan Fund (IGLF) lending program over a scale, relatively labor-intensive enterprises, two-year period. In particular, IGLF's effec- and up to $10 million is to be made available tiveness will be improved through a series of to the Korea Development Leasing Corpora- institutional and policy changes, as will the tion, a KDFC affiliate that leases industrial ability of participating financial intermediaries machinery mainly to small and medium- to mobilize and allocate resources to small and sized enterprises that cannot afford outright medium-scale industries. purchases. PORTUGAL: Bank-$45 million. Finan- MALAWI: Bank-$3 million. The growth cial and technical assistance will provide for of medium- and large-scale enterprises in the the creation, restructuring, and expansion of country will be assisted by providing funds to selected small and medium-scale enterprises, the Investment and Development Bank of will create more employment, stimulate indus- Malawi (INDEBANK) for financing the for- trial exports, develop industrial estates in less 84 Projects Approved, Bank and IDA, by Sector developed regions of the country, assist the gov- duction and exports and reduce mining costs. emnment in developing technological support Jobs will be created in isolated, economically to industry, and help prepare an investment depressed areas, and ore production increased. plan for the textile subsector. Co-financing is Equipment, technical assistance, and consult- being provided by the KfW ($4.7 million), the ant services will be provided. Co-financing EFTA ($1.1 million), and UNIDO ($80,000). ($3.8 million) is being provided by the GTZ. Total cost: $116.42 million. Total cost: $16.5 million. RWANDA: IDA - $5.2 million. About BRAZIL: Bank-$98 million. The project 67% of the foreign exchange requirements of will finance an aluminum smelter plant with a the Banque Rwandaise de Developpement capacity of 86,500 tons per year that relies on (BRD) for 1979 and 1980 will be financed; the country's hydroelectric resources for power some 400 new jobs are expected to be created, and bauxite for raw material. Co-financing is and the appraisal and supervision procedures being provided by Chase Manhattan Bank of the BRD further developed. N.A., as agent for a group of commercial banks SRI LANKA: IDA-$16 million. Credit ($90 million), and Banco de Desenvolvimento will be made available to small and medium- do Estado de Rio de Janeiro ($34 million). sized manufacturing and service industries. Companhia Vale do Rio Doce (CVRD), Shell Technical service agencies will be upgraded to Brasil S.A., and Reynolds International, Inc., provide promotion, technical, marketing, and will provide equity financing ($148 million). management services to assist such firms to Total cost: $370.1 million. expand and improve productivity and thereby EGYPT, ARAB REPUBLIC OF: Bank- generate employment and increase exports. $11 million. The foreign exchange costs of Total cost: $27.9 million. establishing a small experimental mine at the TANZANIA: Bank-$1 million. A line site of the New Valley phosphate deposit will of credit will be provided to the Tanganyika be financed, as will the costs for further studies Development Finance Company, Ltd. to on both the technical and economic viability finance lending to medium-scale industrial of converting phosphate rock into phosphoric enterprises and related services, and agro- acid or other phosphate intermediates and of processing and tourism development projects the infrastructure requirements for such invest- through 1981. ment. Total cost: $13 million. YUGOSLAVIA: Bank-$60 million. Three INDIA: Bank-$250 million. A fertilizer loans of $20 million each have been made to plant, including infrastructure and auxiliary Privredna Banka Sarajevo, Stopanska Banka and offsite facilities, will be constructed in Skopje, and Investiciona Banka Titograd to Maharashtra state. A savings in foreign ex- help finance the foreign exchange costs of change, due to reduced fertilizer imports, is investments in small and medium-sized indus- expected, and about 1,500 permanent jobs will trial subprojects among which are labor-inten- be created. Co-financing ($45 million) is be- sive subprojects in three of the less developed ing provided by the ODA. Total cost: $739.3 regions of the country. million. YUGOSLAVIA: Bank-$40 million. Bene- JORDAN: Bank-$35 million. A potash fiting Kosovo, the poorest of Yugoslavia's re- project-the largest industrial project ever gions, industrial subprojects will be financed, undertaken in the country-will help diversify including subprojects with a labor-intensive the industrial base of the economy; contribute orientation, in small and medium-sized indus- about $150 million annually to industrial ex- tries. In addition, three large subprojects will ports; and lead to the creation of 700 perma- be financed. Institution building support is also nent jobs, as well as 1,000 additional jobs provided. during construction. Co-financing is being pro- vided by USAID ($38 million), the KFAED Industry ($35 million), the ODA ($20 million), the AFESD ($15 million), the Iraqi Development BANGLADESH: IDA-$29 million. Sup- Fund ($15 million), and the OPEC Special plemental finance will be provided the Ashu- Fund ($7 million). Equity will also be held by ganj fertilizer project, approved in fiscal 1975, the Arab Mining Company ($48.3 million), bringing the credit amount to $62 million. The the Libyan Arab Foreign Bank ($10 million), EEC Special Action Account will finance an and the Islamic Development Bank ($12 mil- additional $3 million. lion). Total cost: $428.8 million. BOLIVIA: IDA-$7.5 million. The Na- KOREA, REPUBLIC OF: Bank-$29 mil- tional Mineral Exploration Fund will be lion. Assistance to the Korea Institute of Elec- assisted in its efforts to expand mineral pro- tronics Technology, including the construction Nonproject 85 of physical facilities, the purchase of tech- acetylene unit will help meet the growing de- nology, the promotion of its research, devel- mand for methane-based chemical products. opment, and engineering program, and the Employment will be provided for about 1,100 financing of training programs will help stimu- people, and the country will be able both to late and support the development of techno- earn and save scarce foreign exchange. Total logical capabilities in the electronics industry. cost: $156.6 million. Total cost: $62.9 million. TANZANIA: Bank-$30 million; IDA- MEXICO: Bank-$80 million. The ex- $30 million. A pulp and paper mill will be pected increase in the country's demand for constructed that is designed to supply a sub- fertilizer products will be met through the stantial proportion of the country's paper construction of a manufacturing complex at needs. Logging roads, paper machines and Lazaro Cardenas, a new industrial develop- finishing equipment, steam and power genera- ment "pole" on the west coast of the country. tion equipment, and some supporting infra- The plant will be located near its main market structure are included. Co-financing is being and favorably situated with respect to raw provided by the CDC ($20 million), the KfW materials. Total cost: $301.3 million. ($34 million), the KFAED ($18 million), MOROCCO: Bank-$50 million. The ex- the Nordic Investment Bank ($12.5 million), pansion of phosphate fertilizer production the OPEC Special Fund ($10.5 million), and facilities at Safi, a region where employment SIDA ($45 million). Total cost: $251.7 million. alternatives are few, will provide training and job opportunities for some 1,200 people, as Nonproject well as increase the net export value of the existing plant to about $200 million yearly. BANGLADESH: IDA-$75 million. For- Co-financing in the amount of $13.7 million eign exchange will be provided for the pur- is being provided by Poland. Total cost: $124.4 chase of industrial components, chemicals, and million. spare parts needed by selected high priority PAKISTAN: IDA-$55 million. The coun- industries to reach their full production poten- try will be helped in meeting the growing tial. The credit also includes a program de- demand for nitrogenous fertilizer by the con- signed to improve export development. struction of a urea plant with a capacity of BANGLADESH: IDA-$25 million. This 1,725 tons per day in Punjab province. Co- credit assists in meeting fertilizer import financing is being provided by Haldor Tops0e requirements, and complements a program A.S. ($5 million), USAID ($40 million), the agreed with the government for improving KfW (DM95 million), Denmark ($5 million), fertilizer distribution and marketing, and es- the Islamic Development Bank ($10 million), tablishing a more effective incentive pricing and Italy ($7.4 million). Total cost: $260 system for encouraging grain production. million. GUYANA: Bank-$5 million; IDA-$5 PORTUGAL: Bank-$58 million. Some million. Foreign exchange for imports of raw obsolete fertilizer plants will be replaced and materials and capital and intermediate goods a study of fertilizer use will be made in an will be provided to support the government's effort to develop agriculture to its full poten- economic program. tial. The expected increase in total agricultural JAMAICA: Bank-$31.5 million. Foreign output will reduce imports and improve the exchange earnings will be increased through incomes of farmers. The EIB is providing co- the establishment of a revolving Export De- financing in the amount of $21 million. Com- velopment Fund to finance imports of raw mercial banks are expected to participate in materials, intermediate goods, and spare parts financing with loans of up to $29 million. for producers of nontraditional exports and Total cost: $242.1 million. their domestic suppliers. Technical assistance ROMANIA: Bank-$40 million. A "Pil- is included. ger" mill, the first of its kind in the country, will PERU: Bank-$ 115 million. Foreign ex- be built to help meet the growing demand for change will be provided to help finance im- large seamless pipe products by the oil and ports of industrial raw materials, intermediate gas exploration, chemicals, machinery, and goods and spare parts, as well as agricultural, shipbuilding industries. Foreign exchange electric generating, mining, and forestry equip- earnings will increase, and about 900 jobs ment, and inputs for existing preventive health will be provided in a region that has relatively programs. little industry. Total cost: $139.4 million. TURKEY: Bank-$150 million. Foreign ROMANIA: Bank-$40 million. The con- exchange will be provided for the purchase of struction of a 30,000 metric tons-per-year plant protection materials, fertilizer, raw mate- 86 Projects Approved, Bank and IDA, by Sector rials for agricultural use and steel products, industrial power in the area. Training facilities copper, aluminum, chemicals, and spare parts and teachers for the Bangladesh Power Devel- for manufacturing industries. opment Board's training center will be in- cluded. Co-financing ($8.5 million) is being Population and Nutrition provided by the OPEC Special Fund. Total cost: $44.2 million. BANGLADESH: IDA-$32 million. In BRAZIL: Bank-$109 million. Electricity support of the government's Seven-Year Popu- will be made available to about 415,000 new lation Control and Family Planning Program, consumers, including about 45,000 households maternal and child health and family planning in low-income urban areas and 50,000 rural will be improved in about 270 districts. Health consumers in the service area of Companhia complexes will be constructed, medical work- Paranaense de Energia Eletrica in Parana state. ers trained, and vocational training and family Total cost: $361.66 million. planning education programs made available COLOMBIA: Bank-$84 million. To help to about 100,000 women. Co-financing will be meet the country's projected growth in power provided by CIDA ($5 million), the KfW requirements, a hydroelectric facility consist- ($18.2 million), the Netherlands ($8 million), ing of two surface powerhouses, totaling 600 NORAD ($20 million), and SIDA ($8 million); mW, will be constructed. The project also in- Australia and the United Kingdom are also ex- cludes remedial work on the Sesquile dam to pected to assist in project financing. Total cost: strengthen it against possible future earth- $110 million. quake damage, an asset valuation study, and EGYPT, ARAB REPUBLIC OF: IDA- technical assistance. Total cost: $260.8 million. $25 million. A second population project will COLOMBIA: Bank-$72 million. The sec- improve the provision of family planning and ond phase of the San Carlos hydroelectric maternal and child health services in an effort power project that forms part of the Inter- to reduce population growth and improve the conexi6n El6ctrica S.A. (ISA)'s 1978-85 ex- health of an area that includes about 25% of pansion program will be assisted. The project the country's total population. The ODA iS will provide about 15% of the planned in- providing co-financing in the amount of $8 crease in generation capacity. Total cost: million. Total cost: $60.3 million. crease miiong i MALAYSIA: Bank-$17 million. A second $15.1 millon. population and family health project will help COSTA RICA: Bank-$34 million. A sixth further strengthen the national family planning power project, consisting of the installation of program in order to achieve its demographic transmission lines, substations, subtransmis- goal of reducing the birth rate to 26 per thou- sion and distribution works, engineering and sand and the population growth rate to 2% by other studies, provision of construction and 1985 in peninsular Malaysia, and to extend laboratory equipment, and training, will help family planning services to Sabah and Sarawak meet part of the anticipated demand for for the improvement of maternal and child greater and more reliable electricity supply health. The project would assist in recruiting throughout the country. Co-financing ($1.3 about 800,000 new acceptors during the pe- million) is being provided by the IDB. Total riod, 1978-85, to help meet the demographic cost: $56.2 million. taroet. Total cost: $37.7 million. EGYPT, ARAB REPUBLIC OF: Bank- PHILIPPINES: IDA-$40 million. The $102 million; IDA-$37 million. To help meet country will be assisted in its efforts to reduce the country's demand for electricity, a thermal fertility levels over the next five years, and to power station will be built at Shoubrah El improve the health status of at least 6 million Kheima, on the Nile. Technical assistance is people through a second population project included. Co-financing will be provided by the that provides for population and health train- EEC Special Action Account ($35 million), ing, advisory services, vehicles, equipment, fel- USAID ($100 million), the EIB ($35 million), lowships, and the construction of health service the OECF ($25 million), and possibly the buildings. Total cost: $72 million. OPEC Special Fund ($10 million). Total cost: $465.9 million. Power GUINEA: IDA-$1.1 million. Preparatory work on a large power rehabilitation program BANGLADESH: IDA-$28 million. The for the city of Conakry will be completed. The project will strengthen and expand the power project will finance a feasibility study, repair distribution facilities in the area of Khulna and work, replacement and spare parts, and will its environs to meet the growing demand for also provide technical assistance to the Societe Power 87 Nationale d'Electricite for auditing and ac- and associated facilities. Technical assistance counting procedures. Total cost: $1.2 million. to the Jordan Electricity Authority is included. HAITI: IDA-$16.5 million. The Varreux Co-financing ($500,000) will be provided by power station at Port-au-Prince and seven the AFESD. Total cost: $53.5 million. additional substations will be expanded. Three KENYA: Bank-$9 million. An engineering new substations will be financed, as well as the loan in support of a power project, designed to construction and rehabilitation of distribution develop the geothermal potential at Olkaria, lines, staff training, and consulting services. about 100 kilometers northwest of Nairobi, in- Power stations in three provincial towns and cludes the financing of drilling equipment, sup- distribution networks in three other towns will plies, consultants, and the training of local be renovated and expanded. Co-financing is personnel. In order to implement the geo- being provided by the EEC Special Action thermal project, the availability of adequate Account ($6 million), and is being considered quantities of steam at appropriate temperatures by CIDA ($14.5 million). Total cost: $43 and pressures must be proved. Total cost: million. $15.5 million. HONDURAS: Bank-$30.5 million. MOROCCO: Bank-$42 million. Access to Through the construction of a hydroelectric electricity will be extended to more than plant and a diesel plant, the preparation of a 300,000 people living in 220 rural villages in national electrification master plan, a prefeasi- 17 provinces. Migration from rural areas is ex- bility study of a promising hydro development pected to decrease with improved living condi- site, and the costs of equipment, consultants' tions, increased agricultural productivity, and services, and a training program, the country's more job opportunities. Total cost: $85 million. electricity requirements will be met through NEPAL: IDA-$14.8 million. Supplemen- 1983, and the institutional capacity of the Na- tary finance will be made to a $26 million credit tional Electrical Energy Company increased. approved in January 1976 for a hydroelectric Co-financing is being provided by the CABEI project. Additional financing will be made by ($3.5 million). Total cost: $58 million. the EEC Special Action Account ($3 million), INDIA: Bank-$50 million; IDA-$200 the KFAED ($7.2 million), the UNDP ($1 mil- million. A power station, together with an- lion), and the OECF ($1.1 million). cillary equipment, will be built in Andhra ROMANIA: Bank-$70 million. The coun- Pradesh state. Mechanical and electrical try's anticipated increase in demand for power equipment, turbo generators, boilers, coal over the next five years will be met through the transportation and handling equipment, and construction of a thermal power station-a consultants' services will be financed. Total second stage extension of the station atTurceni cost: $511 million. -and transmission lines that will connect the cost:I$511 mIllio 17 . n. Turceni plant and the city of Cluj. Total cost: INDIA: IDA - $175 mllion. Agricultural $482 7 million. output will be increased and the quality of life THAILAND: Bank-$80 million. The in rural areas improved through the electrifica- country's growing demand for electricity will tion of about 500,000 pumps for about 2.5 be partially met through the construction of a million families in 15,000 villages. Small farm- power plant, two substations, and 110 kilo- ers and small-scale rural industries will also meters of transmission lines. Equipment and benefit as electrification progresses. Landless engineering services will also be financed. Co- laborers will benefit through an increase in em- financing ($22 million) is being provided by ployment opportunities generated by irriga- the KFAED. Total cost: $297 million. tion-induced double cropping. Total cost: $400 YEMEN ARAB REPUBLIC: IDA-$10 million. million. By providing additional high- and low- INDONESIA: Bank - $175 million. Site voltage distribution lines and cables for about preparation and arrangements for a thermal 40,000 new and rehabilitated consumer con- power station in West Java will be financed, as nections, by supplying service vehicles, com- well as the installation of a generating unit, oil munications equipment, and electricity meters, handling and storage facilities, equipment, and and through consultancy services and a train- training, as part of an expansion program to ing program, the urban electricity distribution provide base load generating capacity in the networks in the country's three main cities will country. Total cost: $374.2 million. be improved and expanded, and the organiza- JORDAN: Bank-$15 million. The power tion and effectiveness of the Yemen General needs of three major industrial projects and Electricity Corporation will be improved. Co- 46,000 people in 33 villages will be met financing is to be provided by the Netherlands through the construction of transmission lines ($9 million). Total cost: $59.6 million. 88 Projects Approved, Bank and IDA, by Sector Technical Assistance Bangkok will provide access to public pay BANGLADESH: IDA - $10 million. A telephones to the lower-income population. thirdAtechNicaLADESsistance:proe w- prnlio. A The management and operational capabilities third technical assistance project wll provide of the Telephone Organization of Thailand for preinvestment planning, feasibility and will also be strengthened. Co-financing in the engineering studies, consulting and advisory amount of $62 million is being provided by the services, and training to assist the country in OECF. Total cost: $307 million. project planning and preparation and improv- ing project implementation capacity. Total cost: $12.5 million. Tourism BURUNDI: IDA-$2.5 million. A second BARBADOS: Bank-$8 million. Tourist technical assistance project will help reorga- ARBADOS Bank-$8anfront near nize and strengthen the planning and project Speightstown will be built andfrnt site near preparation units of the ministries of agricul- bpeightstown will b t ase tomBar ture and industry, thus increasing the number badian hotel operators who will share common of viable and effective investment projects in services and facilities such as central manage- the country. Total cost: $3 million. ment and marketing, purchasing, and recrea- INDONESIA: IDA-$10 million. A five- tion facilities. The project will also stimulate year technical assistance program will finance the development of the northern part of the various studies and the preparation of specific island, and will increase demand for agricul- priojes sor components that aim at creating tural products and other local services. Co- projects ocopntshat amtcrtig financing ($3.2 million) is bigprovided by employment, fulfilling basic needs, and alle- the CDB. Total cost: $17.2 million. viating poverty. TOGO: IDA-$2.2 million. Technical as- DOMINICAN REPUBLIC: Bank - $25 sistance will be provided to the Ministry of million. A line of credit will be provided for Planning for a three-year period in an effort the construction of about 1,600 hotel rooms, to promote sounder investment and public restaurants, shops, and other tourist facilities. finance policies. Consultant services, office Urban works, including a better sewerage col- equipment, and supplies are also included. lection network, and an artisan center to train Total cost: $2.4 million. about 50 people each year will also be financed. ZAMBIA: IDA-$5 million. To help Total cost: $71 million. strengthen the government's ability to imple- EGYPT, ARAB REPUBLIC OF: IDA- ment its development program, 70 man-years $32.5 million. As many as 6,000 new perma- of expert and consultant services will be pro- nent jobs will be created and foreign exchange vided to the Planning Commission and opera- earnings increased through the improvement tional ministries. Local staff will be trained, of tourism facilities at Luxor and at nearby and project-related equipment, vehicles, sup- archaeological sites. The Egyptian Museum in plies, and other operating costs will be fi Cairo will be renovated to conserve irreplace- nanced. Total cost: $5.6 million. able antiquities and provide better research facilities, and the guesthouse at Abu Simbel ex- panded to provide better tourist accommoda- Telecommunications tions. Total cost: $59 million. KENYA: Bank-$20 million. Through the HONDURAS: Bank-$19.5 million. For- installation of additional lines of local auto- eign exchange earnings will be diversified and matic exchange equipment, long distance pub- about 1,500 direct permanent jobs, as well as lic call offices, eight microwave and three UHF additional indirect employment, will be created radio systems, and 11 long distance automatic through a tourism development project in exchanges, the Kenya Posts and Telecommu- which funds will be re-lent through financial nications Corporation will be assisted in ex- intermediaries to hotel and other tourism enter- tending local services and long distance circuits prises. In addition, two airports will be im- of high quality, and basic telecommunications proved, land tenure uncertainties regularized, facilities will be provided to poorly served an environmental control plan established for rural areas. Total cost: $63.5 million. Roatan Island, the Copan archaeological park THAILAND: Bank-$90 million. Tele- enhanced, and technical assistance provided. communications services, particularly in the Total cost: $38.3 million. rural areas, will be improved through the ex- IVORY COAST: Bank-$14.2 million. pansion (by 45,000 regular lines and 200 new About 3,000 permanent jobs will be created long distance links) of existing facilities. The through the provision of tourist accommoda- installation of an additional 140.000 lines in tions in Abidjan and other parts of the coun- Transportation 89 try. A wildlife program, as well as technical roads; domestic contractors will be promoted; assistance, will be financed. Co-financing axle load limits enforced; and road planning ($26.9 million) will be provided by financial will be improved. Savings in road transport intermediaries, and private investors are ex- costs, as well as an expansion of agricultural pected to contribute $21 million. Total cost: development in many rural areas, are expected. $63.6 million. Total cost: $83 million. TANZANIA: IDA-$14 million. In order CAMEROON: Bank-$27 million; IDA- to reverse the deterioration in tourist facilities $20 million. A fourth railway project includes and services, hotels will be rehabilitated, ade- the construction of a marshalling yard at quate hotel training provided, the promotion of Douala, railway equipment, a major workshop the country's tourist attractions intensified, expansion, the first-phase construction of a anti-poaching activities strengthened, and locomotive running shed in Yaounde, and roll- transportation infrastructure improved. Total ing stock maintenance and training facilities. cost: $18.3 million. In addition, consulting services and technical assistance will be provided to improve railway operations, management, and training. Total Transportation cost: $59.2 million. AFGHANISTAN: IDA-$17.6 million. CENTRAL AFRICAN EMPIRE: IDA- The country's existing primary road network $15.5 million. A third highway project will will be strengthened, and the government's provide better access to the ocean by recon- program of maintenance and improvement of struction of the Bangui-Bossembele road, a secondary and tertiary roads supported through major import/ export route to Cameroon. Agri- a third highway project. Technical assistance cultural development will be stimulated by is included. Co-financing ($4.4 million) is improved access to markets and reduced costs being provided by the EEC Special Action of supplying inputs. The KFAED and the ADF Account. Total cost: $33.2 million. are providing co-financing of $3.6 million and ALGERIA: Bank-$126 million. A third $5.6 million, respectively. Total cost: $25.7 highway loan will help finance the foreign million. exchange costs of a maintenance program, CHAD: IDA-$7.6 million. Through sup- strengthening of 270 kilometers of roads, re- port of a four-year road maintenance program, construction of 51 kilometers of one of the the regraveling of about 400 kilometers of major national roads, and training of mainte- main roads, a training program for staff of the nance personnel. Technical assistance will be Directorate of Public Works, construction of provided to the Ministry of Public Works to four ferry boats, a study to prepare a rural prepare road development plans and invest- roads project, completion of an improvement ment programs, including feasibility and engi- program for cotton feeder roads, and technical neering studies. Total cost: $239.2 million. assistance, road maintenance will be improved, ARGENTINA: Bank-$96 million. Equip- and transport planning and operations will be ment, materials, and spare parts for the Argen- ($9 miinand tei ADFv($5. tine Railways will be financed, and technical by USAID ($9 mllion) and the ADF ($5.1 assistance will be provided. Total cost: $748.9 million). Total cost: $21.9 million. million. COLOMBIA: Bank-$61 million. Improve- ments in the Bogota and Cartagena airports BENIN: IDA-$8.3 million. Supplemen- and construction of a new domestic airport at tary finance will be made to an $11 million Medellin will help meet rapidly growing air credit approved in June 1978 for a transporta- transport demand and increase the amount of tion project. Norway has bought a participa- time during which aircraft can operate safely. tion in the full amount of the supplementary Technical assistance and training is being pro- credit. vided to the Civil Aeronautics Administration BRAZIL: Bank-$1 10 million. Through a Department. Co-financing ($100,000) is being second feeder roads project, isolated areas will provided by the UNDP. Total cost: $97.8 have better access to markets and to storage million. and processing facilities; agricultural develop- COMOROS: IDA-$5 million. A highway ment will be encouraged; and social, health, project will benefit one of the country's most and education services will be more accessible. densely populated and underdeveloped areas Total cost: $338.5 million. by strengthening its road administration and CAMEROON: Bank-$38 million; IDA- upgrading and expanding the main road net- $10 million. A fourthhighwayprojectwillhelp work, thus providing increased accessibility improve the government's capacity to maintain and reduced transport costs for rural popula- 90 Projects Approved, Bank and IDA, by Sector tions. The ADF and the OPEC Special Fund and traffic law enforcement will also be im- are providing co-financing in the amounts of proved. Total cost: $277 million. $4.5 million and $1 million, respectively. Total KOREA, REPUBLIC OF: Bank-$143 cost: $11.06 million. million. A fourth highway project will provide GAMBIA, THE: IDA-$5 million. A four- for the construction and improvement of year maintenance program for 780 kilometers about 1,230 kilometers of roads located in of high priority roads will be established. many regions of the country. General trans- Equipment, vehicles, spare parts, and other portation and communications will be im- materials will be financed, as well as technical proved and vehicle operating costs reduced. assistance and training for public works de- Approximately 300,000 man-months of em- partment employees. Co-financing ($1.7 mil- ployment will be created during the construc- lion) is being provided by the EEC Special tion period. Total cost: $378 million. Action Account. Total cost: $6.7 million. LESOTHO: IDA-$9 million. About 1,800 GUINEA-BISSAU: IDA-$9 million. The kilometers of roads will be rehabilitated, and incomes of rural families are expected to in- 24 kilometers newly paved through a third crease through a road rehabilitation and main- highway project. Consultant services and tech- tenance project that will provide improved nical assistance are also included. The EEC access to markets. Equipment, materials, spare Special Action Account is providing co- parts, and technical assistance will be provided. financing in the amount of $2.2 million. Total Total cost: $10.15 million. cost: $12.6 million. INDIA: IDA-$190 million. The opera- LIBERIA: Bank-$10.7 million. More than tional efficiency of the Indian Railways will be 300,000 persons living in rural areas will bene- improved through rationalization and modern- fit from the construction, improvement, and ization of maintenance, removal of existing maintenance of about 540 kilometers of feeder bottlenecks in manufacturing capabilities, and roads. The project will help reduce transport support of research and development activities costs, improve access to health and education related to improvement in motive power. Con- facilities, and contribute to the expansion of struction of a wheel and axle plant in Karna- agricultural production. Total cost: $16.3 taka state will generate jobs for about 1,200 million. workers. Total cost: $459 million. MADAGASCAR: IDA-S24 million. INDONESIA: Bank-$130 million. Re- Through the rehabilitation of about 500 kilo- duced transport costs and better mobility meters of paved roads, construction of bridges, throughout the country are expected through and improvement in road maintenance, vehi- the improvement of about 800 kilometers of cle operating costs will be reduced, the road roads, bridge replacements, programs to im- transport industry will become more efficient, prove highway activities in eight provincial and some 1.2 million people living in the public works departments, a highway safety isolated northern part of the country will have program, maintenance equipment, feasibility year-around access to other parts of the coun- studies, and advisory assistance to highway try. Co-financing ($10 million) is being pro- authorities and other agencies for transport vided by the EEC Special Action Account. planning. Co-financing ($800,00) is being pro- Total cost: $40.92 million. vided by the UNDP.Total cost: $249.5 million. MADAGASCAR: IDA-$13 million. Rail- JAMAICA: Bank-$16 million. Through way facilities will be renewed and modernized, the improvement of 539 kilometers of roads, and the efficiency of operations improved provision of highway equipment, and better through the replacement of locomotives and maintenance operations and management, the workshop equipment, track renewal and im- Ministry of Work's Five-Year Road Mainte- provement, and a better financial management nance Program will be supported; through the and accounting system. Co-financing ($20.5 reduction in vehicle operating costs and im- million) is being provided by the CCCE. Total provement in farm-to-market roads, small cost: $43.7 million. farmers will be better able to transport their MEXICO: Bank-$120 million. The road produce to market. Total cost: $25.7 million. network will be modernized and expanded KENYA: Bank-$90 million. A highway through the construction and rehabilitation of sector project will support road development, federal and state highways and urban bypasses. reduce vehicle operating and road maintenance Equipment and vehicles will be purchased, and costs, help to determine an intermodal trans- consultants' services provided. Total cost: port coordination policy, and open up areas $1,110 million. of the country for agricultural development NIGER: IDA-$ 10 million. About 1,000 through new road construction. Road safety kilometers of feeder roads that serve agricul- Transportation 91 tural development areas will be improved and Technical assistance, equipment, spare parts, maintained. The project will finance materials, and fuel will also be provided, along with as- spare parts, equipment, and labor, as well as sistance for the Southern Regional Ministry technical assistance. Total cost: $13 million. of Transport. Total cost: $51.7 million. PARAGUAY: Bank-$39 million. A sixth SWAZILAND: Bank-$11 million. The highway project will provide for the construc- country's transport network will be improved tion of a route linking two major cities and by the construction and upgrading of two main 500 kilometers of feeder roads to reduce ve- road sections to paved standards. Technical hicle operating costs and support agricultural assistance and training will be provided to the development in two regions in the hinterland Roads Branch, as well as the procurement of of the Parana river. Co-financing ($7 million) maintenance equipment and workshop equip- is being provided by Lloyds Bank Interna- ment and tools. Consumers, traders, and pro- tional, Limited. Total cost: $65.5 million. ducers-including small farmers-will benefit PHILIPPINES: Bank-$100 million. A from the project. Total cost: $15.1 million. central equipment depot and various work- TANZANIA: IDA-$20.5 million. About shops will be constructed, maintenance and 2,700 kilometers of primary roads will be re- other equipment will be provided, and more habilitated and maintained through a fifth than 400 kilometers of national and feeder highway project designed to upgrade the coun- roads constructed or improved. In addition, try's road network and reduce transportation 8,400 kilometers of deteriorated road sections costs. Equipment, spare parts, tools, and ma- will be restored to a condition where routine terials will be provided. Total cost: $25.71 maintenance can be undertaken. Total cost: million. $205 million. THAILAND: Bank-$16.7 million. A fifth PORTUGAL: Bank-$40 million. In an railway project will help meet the country's effort to lower transport and maintenance increasing demand for railway services, as well costs, a second highway loan will finance the as improve services and performance through rehabilitation of national roads and training the acquisition of diesel locomotives, passenger and fellowships for highway authority staff. coaches, and freight cars, and the rehabilitation Total cost: $114.7 million. and replacement of track and telecommunica- SENEGAL: Bank-$7 million. A second tions systems equipment. Co-financing for aviation project to strengthen Dakar airport's locomotives, in the amount of about $32 mil- main runway and taxiway and provide for lion, is being provided by the Federal Republic modernization of navigational aids at two other of Germany and France. Total cost: $100.9 airports will help the government increase for- million. eign exchange earnings, improve utilization of TURKEY: Bank-$75 million. Ten main its domestic airline fleet, and promote its grow- public ports will be rehabilitated, institutional ing tourism industry. Total cost: $9.1 million. and financial improvements made in port oper- ations, and master planning and feasibility SOMALIA: IDA-$5.5 million. A conven- studies undertaken to help meet traffic require- tional tanker pier-to be used for receiving ments through 1984. Co-financing ($1 million) inbound crude oil for the Mogadishu oil re- is being provided by the UNDP. Total cost: finery and for outbound refined products-in $155.6 million. Mogadishu's deep water harbor will be pro- URUGUAY: Bank-$26.5 million. The re- vided; as a result, ship waiting time will be construction of 140 kilometers of a major road reduced, and general cargo berth capacity linking Montevideo, the capital city and major released. Total cost: $6.6 million. port, with Brazil will lower vehicle operating SRI LANKA: IDA-$ 16.5 million. costs, save time, and reduce road maintenance Through a project designed to arrest the de- costs. Consulting services and technical assis- terioration of the country's road system by a tance will be provided to strengthen and im- program of enhanced routine and periodic prove transport sector planning. Total cost: maintenance and execution of future works, $61.2 million. the transport of goods and passengers will be YUGOSLAVIA: Bank-$148 million. A facilitated, and road transport costs reduced. tenth highway project will provide funds for Total cost: $28.75 million. the construction and rehabilitation of roads in SUDAN: IDA-$41 million. A second high- the four less developed regions and in Vojvo- way project will reduce transport costs and dina, the country's most important agricultural travel time in the Jebel Aulia-Ed Dueim cor- region. The project will affect, in particular, ridor, thus facilitating the export of agricultural local traffic and, therefore, the farming com- products and providing access to isolated areas. munities served. In several cases, remote areas 92 Projects Approved, Bank and IDA, by Sector will be opened for agricultural development, being provided by the IDB. Total cost: $35.3 and light processing industry and social million. services will be provided. Total cost: $794.6 INDONESIA: Bank-$54 million. Some million. 4.5 million low-income people in five major ZAIRE: IDA-$26 million. An estimated urban areas will be provided with water sup- 40,000 kilometers of roads will be rehabilitated ply, sanitation and garbage disposal services, and maintained, bridges replaced, workshops schools, health facilities, and other basic infra- and warehouses constructed, and equipment, structure through a third urban development spare parts, and fuel provided to help meet project. The project also includes drainage minimum transport requirements in rural areas facilities to alleviate flooding in about 1,000 to support agricultural production and reduce hectares of developed land and training and vehicle operating costs. Co-financing will be materials for 800 community workers. Total provided by CIDA ($6.5 million), the EEC cost: $96 million. Special Action Account ($15.5 million), the MALI: IDA-$12 million. Shelter services, KfW ($23.6 million), the SFD ($33.9 million), improved health and sanitary conditions, and the ODA ($2.2 million), USAID ($700,000), market facilities will be made available to FAC ($200,000), and Belgium ($100,000). some 44,000 low-income residents in Bamako; Total cost: $136.5 million. water supply and sanitation services will be ZAIRE: IDA-$20 million. To help meet provided in three secondary cities; and ve- transport demand in the southern half of the hicles and equipment will be financed for urban country, track rehabilitation and equipment development institutions. Total cost: $15.3 will be financed, as well as spare parts for loco- million. motives and rolling stock, staff training, and PHILIPPINES: Bank-$32 million. The consultant services. Co-financing is being pro- basic needs of more than 180,000 low-income vided by the SFD ($35 million), the KfW people living in the Dagat-Dagatan area of ($25 million), the OPEC Special Fund ($7 Metropolitan Manila and in three secondary million), and the AfDB ($9.6 million); an addi- cities will be partially met through this second tional $9.3 million is expected to be provided urban development project. Funds for em- by the government and other bilateral sources. ployment promotion in the Dagat-Dagatan Total cost: $157.8 million. area will be provided. Technical assistance will also be furnished. Total cost: $69.9 million. Urban Development THAILAND: Bank-$ 16 million. In order to increase travel speeds and to increase person- BRAZIL: Bank-$93 million. More than trip capacity of Bangkok's existing transporta- 80,000 low-income families will benefit from tion system, urban traffic management will be improved housing and better health and edu- strengthened, specific policies to discourage the cation facilities through a sites and services use of low-occupancy vehicles will be imple- and low-cost housing project in two north- mented, low-cost measures to increase the eastern states and in Greater Sao Paulo. Total capacity of the urban road network will be cost: $265.7 million. introduced, and the management and oper- BRAZIL: Bank-$70 million. Living condi- ation of public transport will be improved tions will be improved and incomes increased through technical assistance and training. Total for the mostly poor residents of eight medium- cost: $34 million. sized cities by providing central food ware- TUNISIA: Bank-$19 million. To help houses to support retail grocers in poor areas, meet the needs of people living in low-income stalls for open-air markets, industrial parks for urban areas in Tunis and Sfax, five settlements small enterprises, technical assistance to small will be upgraded, education facilities provided, enterprises and cooperatives, water supply and a small business assistance program inaugu- sewerage systems, flood control programs, and rated, and improvements made in waste col- community facilities, including nurseries and lection and disposal systems. Technical assist- primary schools. Total cost: $200 million. ance is also included. Co-financing ($2.4 COLOMBIA: Bank-$13.5 million. More million) is being provided by the Netherlands than 95,000 people in the city of Cartagena Ministry for Development Cooperation. Total and in a nearby village living below the relative cost: $45 million. poverty minimum, will benefit from an urban development project that includes the provision Water Supply and Sewerage of landfill and drainage in flooded areas, water AFGHANISTAN: IDA-$16.5 million. In supply and sewerage, and housing and com- conjunction with ongoing projects, of which munity facilities. Co-financing ($2 million) is this project is an integral part, some 630,000 Water Supply and Sewerage 93 people-70% of Kabul's urban population- will benefit from a water supply and sewerage will be supplied with clean drinking water project in Maharashtra state that includes the through a second water supply and sewerage construction of water treatment, transmission, project. In addition, the beginnings of a sewer- and distribution facilities; provision of public age system and improved sanitation services standpipes; repairs to water mains and meters; will be provided. Co-financing ($1.6 million) provision of sewage collection, treatment, and is being provided by CIDA. Total cost: $22.5 disposal facilities; training; and technical assist- million. ance. Total cost: $95.8 million. BANGLADESH: IDA-$22 million. More INDIA: IDA-$38 million. Two million than 300,000 urban poor in Dacca will be pro- people will benefit from a project designed to vided with safe water supply and sewerage improve and expand water supply and sewer- facilities through the provision of additional age facilities in eight industrial towns in the connections and sewers. Consultant services Punjab. A free supply of safe water from and feasibility studies for a follow-up project standpipes will help meet the needs of the are included. Total cost: $41.7 million. urban poor, and about 10,000 jobs will be BRAZIL: Bank-$100 million. An esti- created during the construction period. Total mated 3.5 million people living in three north- cost: $77.6 million. eastern states will be supplied with water sup- INDONESIA: Bank-$36 million. Safe ply and sewerage facilities. Tariff studies and water will be provided to about 850,000 urban consultancy services will also be included. poor in seven cities through a second water Total cost: $303 million. supply project. In addition, seven water enter- COLOMBIA: Bank-$31 million. Water, prises will be developed, staff trained, and through house connections, will be provided to future projects prepared. Total cost: $63.7 about 473,000 people in 19 cities by 1983, and million. sewerage services to 654,000 people in 14 KENYA: Bank-$20 million. Through the cities (about half of whom belong to the poor- construction of 33 rural water supply schemes, est population) as a result of a project that also convenient, safe, and reliable water will be focuses on increasing the institutional capaci- provided to a rural population of about half ties of participating water and sewerage com- a million. The Ministry of Water Develop- panies. Total cost: $71.9 million. ment's operation, maintenance, and direct COLOMBIA: Bank-$30 million. Exten- labor sections will be strengthened, and tech- sion of sewerage facilities and household water nical assistance provided. Total cost: $26.8 supply connections will provide better sanitary million. conditions for 1 million people in Bogota. KOREA, REPUBLIC OF: Bank-$ 125 Proper drainage systems will also be built in million. The growing demand for industrial, areas that periodically flood. Long-range plans municipal, and irrigation water supply will be for sewage disposal and reduction of river pol- partially met over the next 20 years through lution will also be financed. Total cost: $62.6 the construction of dams, a power plant and million. associated transmission facilities, the reloca- GUINEA: IDA-$12.5 million. Some tion of roads and railways, and other related 200,000 people living in low-income areas of works. The OECF is providing co-financing in Conakry will gain access to safe water and the amount of $70 million. Total cost: $510 sanitation through the rehabilitation and ex- million. pansion of water production facilities. The LESOTHO: IDA-$6 million. Through AfDB is providing co-financing in the amount constructing extensions to the water supply of $6 million. Total cost: $21.9 million. systems of seven towns and by providing INDIA: IDA-$196 million. The construc- necessary technical assistance and engineering tion of facilities required for the treatment, consulting services, the country's water re- transmission, and distribution of 450 million sources will be developed, sector institutions liters of water a day, and for the improvement strengthened, and domestic water supplies up- and extension of sewage collection, treatment, graded. Total cost: $6.96 million. and disposal will benefit most of Bombay's LIBERIA: IDA-$8 million. A reliable sup- slum population of about 2.5 million people. ply of potable water and increased access to In addition, the incidence of waterborne dis- service for the Monrovia population will be eases should decrease. Training and technical provided. A coordinated and systematic ap- assistance are included. Total cost: $411.6 proach to the provision of service outside million. Monrovia will also be initiated. Management INDIA: IDA-$48 million. Some 2.4 mil- improvement and staff training will be lion people, mostly in the lower-income group, provided to the Liberia Water and Sewer 94 Projects Approved, Bank and IDA, by Sector Corporation. At least 50,000 new low-income PHILIPPINES: Bank-$16 million; IDA- consumers in Monrovia will be included among $22 million. About 1 million people-40% to the beneficiaries. Co-financing is being pro- 60% of whom are in the "absolute poor" vided by the AfDB ($2.9 million) and the group-in 50 provincial cities and 580,000 CDC ($2 million). Total cost: $16.1 million. people in 1,000 rural communities will benefit MOROCCO: Bank-$49 million. The ex- from a water supply project designed to pro- pansion of bulk water production and trans- vide the population with safe drinking water, mission facilities along the mid-Atlantic coast thereby reducing the incidence of waterborne and in the Greater Agadir area will provide diseases and the possibility of epidemics. Proj- access to safe water for about 300,000 people ect components include the construction of living below the poverty level. In addition, an low-cost water supply systems, technical as- expanded standpipe network will provide water sistance, staff training, equipment, and vehicles. to about 900,000 shantytown residents. Co- Total cost: $64 million. financing ($33.3 million) is being provided by SENEGAL: IDA-$2.5 million. Economic, the KfW. Total cost: $182.5 million. financial, and technical studies for the prepara- NIGERIA: Bank-$92 million. The Ka- tion of an investment project for the rehabilita- duna city water supply system will be expanded tion and extension of the water supply and and improved through the construction of a sanitation systems of 11 secondary centers, raw water intake and pumping station, a water including six regional capitals, will be pro- treatment plant, storage reservoirs, transmis- vided, as well as feasibility and financial sion mains, distribution pipelines, and about studies updated, and technical assistance to 250 public standpipes to serve an additional strengthen planning in the sector. Total cost: 400,000 people in mostly low-income areas. $3.2 million. Total cost: $158.4 million. TUNISIA: Bank-$26.5 million. Through PERU: Bank-$8.8 million. A long-term a second stage development of sewerage facili- solution to Lima's water supply problems- ties for Greater Tunis, improvement and ex- which are particularly acute in the city's tension of existing sewerage facilities for Sfax, slums-will be prepared, and studies for a and provision of technical assistance, the gov- major hydropower plant will be completed. emient's overall policy of extending sewerage Total cost: $11.1 million. facilities to match the national program of PHILIPPINES: Bank-$88 million. Some water supply expansion will be supported. 4 million people in Metropolitan Manila will Total cost: $77.5 million. be provided with safe water; service to another TUNISIA: Bank-$25 million. Some 3 million, who are inadequately served at pres- 600,000 people will be provided with safe ent, will be improved. In addition, 10,000 jobs water through the expansion and improvement for 30 months will be provided during project of the water supply systems in selected rural construction. The AsDB is providing co- areas and in low-income urban areas. Total financing in the amount of $100.3 million. cost: $72 million. Total cost: $397.1 million. Projects Approved, by Region 95 Projects Approved for Bank and IDA Assistance in Fiscal 1979, by Region July 1, 1978-June 30, 1979 (US$ millions) Bank loans(') IDA credits(') Total(') Region Country Number(2) Amount Number(2) Amount Number(2) Amount Eastern Africa Burundi ......................... $ - 2 $ 6.8 2 $ 6.8 Comoros ......................... - - 1 5.0 1 5.0 Kenya . .......................... 5 211.0 2 40.0 7 251.0 Lesotho .............. ............ - - 2 15.0 2 15.0 Madagascar .......... ............ - - 3 49.0 3 49.0 Malawi ............. ............. 1 3.0 2 36.5 3 39.5 Rwanda ........... .............. - - 2 14.0 2 14.0 Somalia ............ ............. - - 3 24.0 3 24.0 Sudan . .......................... - - 2 56.0 2 56.0 Swaziland ........... ............. 1 11.0 - - 1 11.0 Tanzania ........... ............. 2 41.0 3 76.5 5 117.5 Zaire ............................. - - 2 46.0 2 46.0 Zambia .............. ............ - - 2 11.0 2 11.0 Total ............. ............. 9 $ 266.0 26 $ 379.8 35 $ 645.8 Western Africa Benin"' .............t............ - $ - - $ 8.3 - $ 8.3 Cameroon ........ ................ 2 65.0 - 30.0 2 95.0 Central African Empire ..... ....... - - 2 18.0 2 18.0 Chad . . .......................... - - 1 7.6 1 7.6 Gambia, The .......... ........... - - 1 5.0 1 5.0 Ghana ........................... - - 1 19.0 1 19.0 Guinea ............. ............. - - 3 21.6 3 21.6 Guinea-Bissau ...... .............. - - 1 9.0 1 9.0 Ivory Coast .......... ............ 4 52.4 - - 4 52.4 Liberia .............1............. 10.7 2 14.0 3 24.7 Mali ............................. - - 3 21.0 3 21.0 Mauritania .......... ............. - - 1 8.0 1 8.0 Niger . .......................... - - 3 37.0 3 37.0 Nigeria .......................... 5 182.0 - - 5 182.0 Senegal ............. ............. 1 7.0 2 24.5 3 31.5 Togo ............................. - - 2 16.2 2 16.2 Total .......................... 13 $ 317.1 22 $ 239.2 35 $ 556.3 East Asia and Pacific Indonesia ........... ............ 9 $ 704.0 2 $ 126.0 11 $ 830.0 Korea, Republic of ...... .......... 4 397.0 - - 4 397.0 Lao People's Democratic Republic . .. - - 1 10.4 1 10.4 Malaysia ......................... 5 132.0 - - 5 132.0 Papua New Guinea ...... .......... - - 1 20.0 1 20.0 Philippines ........... ............ 8 333.5 1 62.0 9 395.5 Thailand ............ ............. 6 225.1 2 60.0 8 285.1 Viet Nam ............ ............ - - 1 60.0 1 60.0 Total .......................... 32 $1,791.6 8 $ 338.4 40 $2,130.0 South Asia Bangladesh ....................... - $ - 9 $ 271.0 9 $ 271.0 Burma ........................... - - 2 39.0 2 39.0 India ............................. 2 300.0 11 1,192.0 13 1,492.0 Maldives ......................... - - 1 3.2 1 3.2 Nepal ............................ - - 2 39.8 2 39.8 Pakistan ............ ............. - - 5 164.0 5 164.0 Sri Lanka ............ ............ - - 4 68.0 4 68.0 Total .......................... 2 $ 300.0 34 $1,777.0 36 $2,077.0 (continued) 96 Projects Approved, by Region Projects Approved for Bank and IDA Assistance in Fiscal 1979, by Region (continued) July 1, 1978-June 30, 1979 (USS millions) Bank loans(') IDA credits(') Totall') Region Country Number(2) Amount Number(') Amount Number(2) Amount Europe, Middle East, and North Africa Afghanistan ......... ............. - $ - 4 $ 71.6 4 $ 71.6 Algeria . ......................... 2 168.0 - - 2 168.0 Cyprus ........................... 2 16.0 - - 2 16.0 Egypt, Arab Republic of ..... ....... 3 188.0 3 134.5 6 322.5 Greece ........................... 1 25.0 - - 1 25.0 Jordan ........................... 2 50.0 - - 2 50.0 Morocco .............. ........... 6 349.0 - - 6 349.0 Portugal ............. ............ 3 143.0 - - 3 143.0 Romania ............ ............ 5 295.0 - - 5 295.0 Syrian Arab Republic ...... ........ 2 51.0 - - 2 51.0 Tunisia ........................... 4 99.0 - - 4 99.0 Turkey ........................... 4 312.5 - - 4 312.5 Yemen Arab Republic ...... ........ - - 3 35.0 3 35.0 Yemen, People's Democratic Republic of - - 2 14.0 2 14.0 Yugoslavia ........... ............ 5 385.0 - - 5 385.0 Total .......................... 39 $2,081.5 12 $ 255.1 51 $ 2,336.6 Latin America and the Caribbean Argentina ........... ............. 1 $ 96.0 - $ - 1 $ 96.0 Barbados ............ ............ 2 17.0 - - 2 17.0 Bolivia . ......................... - - 2 10.5 2 10.5 Brazil ............................ 9 674.0 - - 9 674.0 Colombia ............. ........... 7 311.5 - - 7 311.5 Costa Rica ........... ............ 1 34.0 - - 1 34.0 Dominican Republic ...... ......... 2 52.0 - - 2 52.0 Ecuador ............. ............ 2 58.0 - - 2 58.0 El Salvador .......... ............ 1 23.5 - - 1 23.5 Guyana .......................... 2 15.0 - 5.0 2 20.0 Haiti ............................ - - 1 16.5 1 16.5 Honduras ............ ............ 3 65.0 - - 3 65.0 Jamaica .............. ........... 4 66.5 - - 4 66.5 Mexico ........................... 5 552.0 - - 5 552.0 Panama . ........................ 2 34.0 - - 2 34.0 Paraguay ............ ............ 2 64.0 - - 2 64.0 Peru ............................ 2 123.8 - - 2 123.8 Trinidad and Tobago ...... ......... 1 20.0 - - 1 20.0 Uruguay . ........................ 1 26.5 - - 1 26.5 Total .......................... 47 $2,232.8 3 $ 32.0 50 $ 2,264.8 GRAND TOTAL ....... ............ 142 $6,989.0 105 $3,021.5 247 $10,010.5 ('> All supplements and amendments are included in amounts, but only those qualifying as separate lending operations are included in number. (2) Joint Bank/IDA operations are counted only once, as Bank operations. (3) Reflects an $8.3 million increase in the amount of an IDA credit for the Cotonou port project (approved in fiscal year 1978), resulting from the conversion of a grant in this amount by Norway into a participation in the credit. Projects Approved, by Purpose 97 Projects Approved for Bank and IDA Assistance in Fiscal 1979, by Purpose July 1, 1978-June 30, 1979 (US$ millions) Purpose(l) Bank IDA Total Agriculture and Rural Development Afghanistan-Area development ......................... $ - $ 16.5 $ 16.5 Algeria-Agricultural credit ................. 42.0 - 42.0 Bangladesh-Fisheries . . . .......... - 6.0 6.0 Bangladesh-Irrigation, flood control . . ....... - 19.0 19.0 Bolivia-Area development . . . ........ - 3.0 3.0 Brazil-Irrigation, flood control . .............. 28.0 - 28.0 Brazil-Area development ................. 40.0 - 40.0 Brazil-Area development ................. 26.0 - 26.0 Burma-Area development . . ........... - 34.5 34.5 Burma-Perennial crops . . ........... - 4.5 4.5 Burundi-Forestry . . . ............ - 4.3 4.3 Central African Empire-Livestock . . ....... - 2.5 2.5 Colombia-Agricultural credit . ............... 20.0 - 20.0 Cyprus-Irrigation, flood control . ............. 11.0 - 11.0 Dominican Republic-Irrigation, flood control . ........ 27.0 - 27.0 Ecuador-Area development ................ 18.0 - 18.0 Greece-Forestry ..................... 25.0 - 25.0 Guyana-Forestry .................... 10.0 - 10.0 India-Agricultural credit . . ........... - 30.0 30.0 India-Irrigation, flood control . . . ........ - 129.0 129.0 India-Irrigation, flood control . . . ........ - 111.0 111.0 India-Research and extension . . ......... - 27.0 27.0 India-Research and extension . . ......... - 25.0 25.0 India-Forestry . . . .............. - 23.0 23.0 Indonesia-Area development ................ 90.0 67.0 157.0 Indonesia-Irrigation, flood control . ............ 77.0 - 77.0 Indonesia-Irrigation, flood control . ............ 50.0 - 50.0 Ivory Coast-Perennial crops ............... 7.6 - 7.6 Ivory Coast-Forestry ................... 18.0 - 18.0 Jamaica-Forestry .................... 12.0 - 12.0 Kenya-Agriculture sector loan . . ......... - 13.0 13.0 Kenya-Area development ................. 72.0 - 72.0 Kenya-Crop processing, storage . . . ...... - 27.0 27.0 Lao People's Democratic Republic-Area development ...... - 10.4 10.4 Liberia-Forestry . . . ............ - 6.0 6.0 Madagascar-Area development . . ......... - 12.0 12.0 Malawi-Area development . . ........... - 22.0 22.0 Malaysia-Area development ................ 26.5 - 26.5 Malaysia-Irrigation, flood control . ............ 31.0 - 31.0 Malaysia-Perennial crops ................. 19.5 - 19.5 Maldives-Fisheries . . ............. - 3.2 3.2 Mali-Agriculture sector loan . . ......... - 4.5 4.5 Mali-Forestry . . . ............. - 4.5 4.5 Mexico"'2-Irrigation, flood control . ............. 25.0 - 25.0 Mexico-Area development ................. 60.0 - 60.0 Mexico-Irrigation, flood control . ............. 92.0 - 92.0 Morocco-Agricultural credit ................ 70.0 - 70.0 Nepal-Area development . . ........... - 11.0 11.0 Nepal-Irrigation, flood control . . ......... - 14.0 14.0 Niger-Irrigation, flood control . . ......... - 15.0 15.0 Niger-Livestock . . . ............. - 12.0 12.0 Nigeria-Agriculture sector loan . ............. 9.0 - 9.0 Nigeria-Area development ................ 27.0 - 27.0 Nigeria-Area development ................. 23.0 - 23.0 Nigeria-Forestry ..................... 31.0 - 31.0 Pakistan-Irrigation, flood control . . . ...... - 60.0 60.0 Pakistan-Research and extension . . . ...... - 9.0 9.0 Panama-Perennial crops ................. 19.0 - 19.0 Papua New Guinea-Area development ................... - 20.0 20.0 (continued) 98 Projects Approved, by Purpose Projects Approved for Bank and IDA Assistance in Fiscal 1979, by Purpose (continued) July 1, 1978-June 30, 1979 (US$ millions) Purpose(') Bank IDA Total Agriculture and Rural Development (continued) Paraguay-Livestock .................................. $ 25.0 $ - $ 25.0 Philippines-Agricultural credit . .............. 16.5 - 16.5 Philippines-Irrigation, flood control . ............ 21.0 - 21.0 Philippines-Research and extension . ............ 35.0 - 35.0 Romania-Livestock .................... 75.0 - 75.0 Romania-Irrigation, flood control . ............ 70.0 - 70.0 Rwanda-Area development . .............. - 8.8 8.8 Somalia-Livestock ................... - 8.0 8.0 Somalia-Research and extension . ............ - 10.5 10.5 Sri Lanka-Area development ........................;.. - 20.0 20.0 Sri Lanka-Research and extension .......... .. .......... - 15.5 15.5 Sudan-Area development ................ .............. - 15.0 15.0 Syrian Arab Republic-Irrigation, flood control ............. 30.0 - 30.0 Syrian Arab Republic-Crop processing, storage ............ 21.0 - 21.0 Thailand-Area development ............. .. ............. - 25.0 25.0 Thailand-Irrigation, flood control .......... .. ........... 17.5 - 17.5 Togo-Perennial crops ................. ................ - 14.0 14.0 Tunisia-Fisheries .................. ................... 28.5 - 28.5 Turkey-Crop processing, storage .......... .. ............ 85.0 - 85.0 Viet Nam-Irrigation, flood control .......... .. ........... - 60.0 60.0 Yemen Arab Republic-Irrigation, flood control ............ - 15.0 15.0 Yemen, People's Democratic Republic of-Fisheries ......... - 10.0 10.0 Yugoslavia-Area development ........... .. ............. 55.0 - 55.0 Yugoslavia-Irrigation, flood control ........ .. ........... 82.0 - 82.0 Zambia-Perennial crops ........................... .- 6.0 6.0 Total . ............................................. $1,568.1 $ 953.7 $ 2,521.8 Education Afghanistan ............. ............................. $ - $ 21.0 $ 21.0 Bangladesh ........................................... - 25.0 25.0 Barbados ............................................ 9.0 - 9.0 Egypt, Arab Republic of ................. ............... - 40.0 40.0 El Salvador ........................................... 23.5 - 23.5 Guinea .............................................. - 8.0 8.0 Indonesia ............................................ - 49.0 49.0 Indonesia . ........................................... 42.0 - 42.0 Malawi . ............................................. - 14.5 14.5 Malaysia ............................................. 38.0 - 38.0 Morocco . ............................................. 113.0 - 113.0 Pakistan . ............................................. - 10.0 10.0 Senegal . ............................................. - 22.0 22.0 Tanzania ............................................. - 12.0 12.0 Thailand . ............................................. - 35.0 35.0 Trinidad and Tobago ........ .......................... 20.0 - 20.0 Yemen Arab Republic ........ .......................... - 10.0 10.0 Yemen, People's Democratic Republic of ..... ............. - 4.0 4.0 Total . ............................................. $ 245.5 $ 250.5 $ 496.0 Energy Egypt, Arab Republic of ........ ........................ $ 75.0 $ - $ 75.0 Pakistan ............. __ ..... ................ 30.0 30.0 Thailand ............................................. 4.9 - 4.9 Turkey .............................................. 2.5 - 2.5 Total . ............................................. $ 82.4 $ 30.0 $ 112.4 Industrial Development and Finance"3' Cyprus . ............................................. $ 5.0 $ - $ 5.0 Ecuador ............................................. 40.0 - 40.0 Ghana ......................... - 19.0 19.0 Honduras ............................................ 15.0 - 15.0 Projects Approved, by Purpose 99 Purpose(l) Bank IDA Total Indonesia ............................................ $ 50.0 $ - $ 50.0 Ivory Coast ....................... 12.6 - 12.6 Jamaica ........................ 7.0 - 7.0 Korea, Republic of ..................... 100.0 - 100.0 Malawi ......................... 3.0 - 3.0 Mauritania ....................... - 8.0 8.0 Mexico .......................... 175.0 - 175.0 Morocco ......................... 25.0 - 25.0 Panama ......................... 15.0 - 15.0 Philippines ........................ 25.0 - 25.0 Portugal ......................... 45.0 - 45.0 Rwanda ........................ - 5.2 5.2 Sri Lanka ....................... - 16.0 16.0 Tanzania ........................ 11.0 - 11.0 Yugoslavia ........................ 40.0 40.0 Yugoslavia ........................ 60.0 - 60.0 Total .............................................. $ 628.6 $ 48.2 $ 676.8 Industry Bangladesh'2°-Fertilizer and chemicals .................... $ - $ 29.0 $ 29.0 Bolivia-Mining, other extractive ........................ - 7.5 7.5 Brazil-Iron and steel (aluminum) ........................ 98.0 - 98.0 Egypt, Arab Republic of-Engineering (phosphate) ......... 11.0 - 11.0 India-Fertilizer and chemicals .......................... 250.0 - 250.0 Jordan-Mining, other extractive ......................... 35.0 - 35.0 Korea, Republic of-Industry sector loan .................. 29.0 - 29.0 Mexico-Fertilizer and chemicals ........................ 80.0 - 80.0 Morocco-Mining, other extractive ....................... 50.0 - 50.0 Pakistan-Fertilizer and chemicals .................. .... - 55.0 55.0 Portugal-Fertilizer and chemicals ....................... 58.0 - 58.0 Romania-Fertilizer and chemicals ....................... 40.0 - 40.0 Romania-Industry sector loan .......................... 40.0 - 40.0 Tanzania-Pulp and paper .............................. 30.0 30.0 60.0 Total .............................................. $ 721.0 $ 121.5 $ 842.5 Nonproject Bangladesh ........................................... $ - $ 75.0 $ 75.0 Bangladesh ....................... - 25.0 25.0 Guyana ........................ 5.0 5.0 10.0 Jamaica ............................................. 31.5 - 31.5 Peru ................................................ 115.0 - 115.0 Turkey .............................................. 150.0 - 150.0 Total .............................................. $ 301.5 $ 105.0 $ 406.5 Population and Nutrition Bangladesh ........................................... $ - $ 32.0 $ 32.0 Egypt, Arab Republic of ................. - 25.0 25.0 Malaysia ........................ 17.0 - 17.0 Philippines ....................... - 40.0 40.0 Total .............................................. $ 17.0 $ 97.0 $ 114.0 Power Bangladesh ...... $ - $ 28.0 $ 28.0 Brazil ...... 109.0 - 109.0 Colombia ...... 84.0 - 84.0 Colombia ...... 72.0 - 72.0 Costa Rica ...... 34.0 - 34.0 Egypt, Arab Republic of ...... 102.0 37.0 139.0 Guinea ...... - 1.1 1.1 (continued) 100 Projects Approved, by Purpose Projects Approved for Bank and IDA Assistance in Fiscal 1979, by Purpose (continued) July 1, 1978-June 30, 1979 (US$ millions) Purpose(,) Bank IDA Total Power (continued) Haiti ................................................ $ - $ 16.5 $ 16.5 Honduras ........................ 30.5 - 30.5 India ...................... .......................... - 175.0 175.0 India ................................................ 50.0 200.0 250.0 Indonesia ................... .. ....................... 175.0 - 175.0 Jordan ....................... ....................... 15.0 - 15.0 Kenya ...................... ......................... 9.0 - 9.0 Morocco .................... .. ....................... 42.0 - 42.0 Nepal"2> ...................... . .................. - 14.8 14.8 Romania ...................... ....................... 70.0 - 70.0 Thailand .................... .. ....................... 80.0 - 80.0 Yemen Arab Republic .................. ................ - 10.0 10.0 Total . ............................................. $ 872.5 $ 482.4 $ 1,354.9 Technical Assistance Bangladesh ........................................... $ - $ 10.0 $ 10.0 Burundi ....................... ...................... - 2.5 2.5 Indonesia ...................... ...................... - 10.0 10.0 Togo ................................................ - 2.2 2.2 Zambia ..................... ......................... 5.0 5.0 Total .............................................. $ - $ 29.7 $ 29.7 Telecommunications Kenya ................................................ $ 20.0 $ - $ 20.0 Thailand .................... .. ....................... 90.0 - 90.0 Total . ............................................. $ 110.0 $ - $ 110.0 Tourism Barbados . ........................................... $ 8.0 $ - $ 8.0 Dominican Republic ................. .................. 25.0 - 25.0 Egypt, Arab Republic of ................. ............... - 32.5 32.5 Honduras .................... .. ...................... 19.5 - 19.5 Ivory Coast ..................... ..................... 14.2 - 14.2 Tanzania ............................................. - 14.0 14.0 Total . ............................................. $ 66.7 $ 46.5 $ 113.2 Transportation Afghanistan-Highways ........ ........................ $ - $ 17.6 $ 17.6 Algeria-Highways ................. ................... 126.0 - 126.0 Argentina-Railways ................. ................. 96.0 - 96.0 Benin(2"-Ports and waterways ............ .. ............. - 8.3 8.3 Brazil-Highways .................. ................... 110.0 - 110.0 Cameroon-Highways .............. .. ................. 38.0 10.0 48.0 Cameroon-Railways ................. ................. 27.0 20.0 47.0 Central African Empire-Highways ......... .. ........... - 15.5 15.5 Chad-Highways .................... - 7.6 7.6 Colombia-Airlines and airports .......... .. ............. 61.0 - 61.0 Comoros-Highways ................. ................. - 5.0 5.0 Gambia, The-Highways ................ ............... 5.0 5.0 Guinea-Bissau-Highways ............... ............... 9.0 9.0 India-Railways ................... ................... - 190.0 190.0 Indonesia-Highways ................ .................. 130.0 - 130.0 Jamaica-Highways ................. .................. 16.0 - 16.0 Kenya-Highways .................. ................... 90.0 - 90.0 Korea, Republic of-Highways .......... .. .............. 143.0 - 143.0 Lesotho-Highways .................. ................. - 9.0 9.0 Liberia-Highways .................. .................. 10.7 - 10.7 Madagascar-Highways ................ ................ - 24.0 24.0 Madagascar-Railways ............... .. ................ - 13.0 13.0 Mexico-Highways ................. ................... 120.0 - 120.0 Niger-Highways ................... .................. - 10.0 10.0 Projects Approved, by Purpose 101 Purpose(') Bank IDA Total Paraguay-Highways .................................. $ 39.0 $ - $ 39.0 Philippines-Highways ................... 100.0 - 100.0 Portugal-Highways .................... 40.0 - 40.0 Senegal-Airlines and airports . .............. 7.0 - 7.0 Somalia-Ports and waterways . ............. - 5.5 5.5 Sri Lanka-Highways .................. - 16.5 16.5 Sudan-Highways .................... - 41.0 41.0 Swaziland-Highways ..................... I ............ 11.0 - 11.0 Tanzania-Highways ................. ................. - 20.5 20.5 Thailand-Railways ................. .................. 16.7 - 16.7 Turkey-Ports and waterways ........... .. .............. 75.0 - 75.0 Uruguay-Highways .................... 26.5 - 26.5 Yugoslavia-Highways ................ ................. 148.0 - 148.0 Zaire-Highways .................... - 26.0 26.0 Zaire-Railways ........... ......... ...... 0 20.0 Total .............. $1,430.9 $ 473.5 $ 1,904.4 Urban Development Brazil .............. $ 93.0 $ - $ 93.0 Brazil ............................................... 70.0 - 70.0 Colombia . ........................................... 13.5 - 13.5 Indonesia . ........................................... 54.0 - 54.0 Mali ................................................ - 12.0 12.0 Philippines . ........................................... 32.0 - 32.0 Thailand .............................................. 16.0 - 16.0 Tunisia ............................................... 19.0 - 19.0 Total .............................................. $ 297.5 $ 12.0 $ 309.5 Water Supply and Sewerage Afghanistan . .......................................... $ - $ 16.5 $ 16.5 Bangladesh ........................................... - 22.0 22.0 Brazil ............................................... 100.0 - 100.0 Colombia ............................................ 31.0 - 31.0 Colombia ............................................ 30.0 - 30.0 Guinea .............................................. - 12.5 12.5 India . ............................................... - 196.0 196.0 India ................................................ - 38.0 38.0 India ........................ ................... - 48.0 48.0 Indonesia .................... .... 36.0 - 36.0 Kenya ............................................... 20.0 - 20.0 Korea, Republic of ................. ................... 125.0 - 125.0 Lesotho .............................................. - 6.0 6.0 Liberia .............................................. - 8.0 8.0 Morocco ............................................. 49.0 - 49.0 Nigeria .............................................. 92.0 - 92.0 Peru ................................................ 8.8 - 8.8 Philippines ........................................... 16.0 22.0 38.0 Philippines ........................................... 88.0 - 88.0 Senegal .............................................. - 2.5 2.5 Tunisia ......................... 26.5 - 26.5 Tunisia ......................... 25.0 - 25.0 Total ............ $ 647.3 $ 371.5 $ 1,018.8 GRAND TOTAL ............ $6,989.0 $3,021.5 $10,010.5 Note: For additional details, see Bank/IDA Appendices 3 and 4, Statement of Loans Approved during Fiscal Year 1979 and Statement of Development Credits Approved during Fiscal Year 1979, respectively. (') Operations have been classified by the major purpose they finance. Many projects include activity in more than one sector or subsector. (2) Supplement to a previous loan or credit, not counted as a separate lending operation. (0) Includes lending to development finance companies and to small enterprises. 102 External Coordination and Cooperation Economic Development Institute Graduate Study and Research in Agriculture; a general projects course in Baghdad, with the Fiscal 1979 saw the beginning of the Eco- Arab Planning Institute; an industrial projects nomic Development Institute's (EDI) five- course in Tokyo, with the International Devel- year program for the period, fiscal 1979-83. opment Center of Japan; and three transporta- The program envisages: (a) increased support tion courses in different regions-one in Bra- for training institutions overseas through silia (Brazil) with the Training Center for teaching, advice on training methods, course Economic Development; another in Arusha planning and administration, and the supply (Tanzania) with the East African Management of training material prepared by EDI staff; (b) Institute; and a third in Dacca with the Bang- an increased number of national and regional ladesh Irstitute for Development Studies. courses, especially in Africa; and (c) the in- After the transportation course in Dacca was troduction, testing, and development in its completed, an experimental seminar was held Washington teaching program of new courses in Kathmandu, Nepal, for the supervisors of and short innovative seminars. South Asian participants in previous EDI In line with this strategy, EDI offered, dur- transportation courses that had been held in ing fiscal 1979, 11 courses and three seminars Washington, Bangladesh, and Pakistan. In for about 400 participants in Washington, and South America, EDI joined the Association of supported 33 overseas courses and seminars Argentine Banks in a new training program for given to about 850 participants. One-third of the countries of the River Plate basin (Argen- the overseas courses and seminars were re- tina, Boliva, Brazil, Paraguay, Uruguay), with gional, serving officials from countries sharing a first seminar held in San Nicolas for senior common linguistic, cultural, or geographic public and private officials, followed by a first backgrounds. The rest were for nationals of course on agro-industrial projects in Buenos particular countries. Aires. EDI also helped organize a second semi- In the Washington programs, two courses nar for Ibero-American training institutions were given for the first time: one on population held in Brazil. and development and the other on the prepara- At the request of the Nigerian government, tion, evaluation, and management of railway EDI assisted the Nigerian Institute of Eco- projects. A development banking course was nomic and Social Research which offered train- also offered in Spanish for the first time. The ing courses for officials involved in the prepara- rural development projects course was given tion of that country's fourth national five-year in French for the second time, and, for the development plan. EDI also joined local insti- second consecutive year, the United Nations tutions and government departments in giving Institute for Training and Research joined courses on general projects in Libya and Spain; EDI in conducting a seminar (this time, bi- on industrial projects in Bangladesh and Iraq; lingual English-French) on economic devel- on transportation projects in Egypt, Indonesia, opment and its international setting for the Pakistan, and Romania; and on urban devel- staff of diplomatic missions to the United Na- opment in India. In Pakistan and India, two tions. A seminar on teaching methods and cur- other courses were held on special topics con- riculum design was also given for the second cerned with development policy analysis, de- year in a row, and a new, two-week seminar cision making, and implementation. In Egypt, was held for chief executives of development a one-week seminar for senior transportation banks. officials was jointly sponsored by EDI and the Overseas, EDI continued its cooperative Egyptian Ministry of Transport. programs with various training institutions. In seven other national courses, EDI, while Regional courses and seminars included: a providing little or no direct teaching, helped in rural credit projects course in Los Banos, co- planning and designing the curriculum, in sponsored by the University of the Philippines identifying lecturers, and in supplying training and the Southeast Asian Regional Center for materials. These were a rural development Coordination of Assistance 103 projects course in Bangladesh; a water supply way, Saudi Arabia, Sweden, Switzerland, the projects course in Chile; two courses on gen- United Kingdom, the United States, Venezu- eral projects and on agricultural and agro- ela, and the European Economic Community. industrial projects in Indonesia; an industrial Co-financers of individual projects are named and agro-industrial projects course in Tanza- with each project in the chapter, "Projects Ap- nia; an agricultural and industrial projects proved for Bank and IDA Assistance in Fiscal course in Venezuela; and a highway projects 1979, by Sector," beginning on page 73. course in Yugoslavia. In May 1978, an Agreement was signed be- The number of officials spending some time tween the European Economic Community at EDI continued to increase. Many were in- and its nine member countries and IDA, estab- terested in applying EDI experience in the lishing the Association as administrator of a training activities of their own institutions or "Special Action Account" to provide assistance government departments. In the past year, EDI to low-income countries whose development staff produced several collections of training prospects have been seriously reduced by ex- materials that can be used independently by ternal factors and which face problems of other institutions in developing countries. Ef- resource transfers. Under this Agreement, forts in this direction will increase in the next which became effective January 1, 1979, IDA few years as part of EDI's five-year program. is responsible for the commitment and dis- bursement of the equivalent of about $385 Coordination of Assistance million. Approximately $175 million was com- mitted in 24 "Special Action Credits" as addi- At the request of both donor and recipient tions to Bank and IDA projects during fiscal governments, the Bank has continued to take 1979. The balance of the "Special Action Ac- the lead in organizing various aid coordination count" is expected to be committed during the mechanisms for a number of developing coun- first half of fiscal year 1980. tries that receive assistance from bilateral and The Bank also continued its efforts to stimu- multilateral sources. During the year, 10 aid late private investment in Bank-sponsored proj- coordinating groups held formal meetings that ects. Since fiscal 1975, an increasing number were sponsored by the Bank. These were the of projects have been co-financed by private country groups for Bangladesh, Burma, India, commercial banks in borrowing countries. Kenya, Korea, Pakistan, the Philippines, Sri During the past year, such co-financing con- Lanka, and Thailand, and the Caribbean tinued to play an important role in the Bank's Group for Cooperation in Economic Devel- operations. opment. The Bank also participated in a meet- On a regional basis, the Bank continued its ing of the Inter-Governmental Group for Indo- active participation in the country reviews nesia, chaired by the Netherlands. sponsored by the Permanent Executive Com- The large number of projects that the Bank mittee of the Inter-American Economic and and IDA helped to finance jointly or on a Social Council. It furthermore maintained parallel basis with other national and multi- close working relations with regional financing lateral organizations is an indication of the institutions and the Commission of the Euro- close cooperation that exists among the various pean Communities, which helped assure the co- development assistance agencies. Projects were ordination of development assistance activities. co-financed with the United Nations Develop- Formal consultations were held during the ment Programme, the World Food Pro- year with the Ministry of Economic Coopera- gramme, the European Investment Bank, the tion of the Federal Republic of Germany and Nordic Investment Bank, the Arab Bank for the Kreditanstalt fur Wiederaufbau, as well Economic Development in Africa, the Arab as with the Overseas Economic Cooperation Fund for Economic and Social Development, Fund of Japan and the Export-Import Bank of the International Fund for Agricultural Devel- Japan in order to review questions of common opment, the Islamic Development Bank, the interest and to discuss country and project mat- OPEC Special Fund, and various regional fi- ters and possibilities for co-financing. With the nancing institutions (the African Development purpose of determining potential co-financings, Bank and Fund, the Asian Development Bank, regular contacts were also maintained with the the Caribbean Development Bank, the Central Abu Dhabi Fund for Arab Economic Develop- American Bank for Economic Integration, the ment, the Arab Bank for Economic Develop- Inter-American Development Bank), as well ment in Africa, the Arab Fund for Economic as with aid agencies in Abu Dhabi, Australia, and Social Development, the International Canada, Finland, France, Germany, Iran, Fund for Agricultural Development, the Is- Japan, Kuwait, Libya, the Netherlands, Nor- lamic Development Bank, the Kuwait Fund 104 External Coordination and Cooperation Co-financing"' of Bank- and IDA-assisted Projects, by Region (US$ millions. Fiscal years.) 1976(2) 1977(2) 1978(2) 1979(2) Number Number Number Number of Amount of Amount of Amount of Amount projects co-financed projects co-financed projects co-financed projects co-financed Eastern Africa 13 $ 147.7 20 $ 325.1 14 $ 214.4 19 $ 514.4 Western Africa 16 407.2 12 299.2 17 184.8 14 112.0 East Asia and Pacific 10 392.9 5 204.1 10 220.0 13 496.5 SouthAsia 5 65.7 7 176.8 5 144.1 13 423.1 Europe, Middle East, andNorthAfrica 14 718.3 13 483.1 20 1,239.5 27 925.9 Latin America and the Caribbean 5 474.6 12 621.3 15 772.9 21 776.1 Total 63 $2,206.4 69 $2,109.6 81 $2,778.7 107 $3,248.0 Asa % of Lending Program 29 33 30 30 34 33 43 32 (l) Includes co-financing from official and private sources, as well as suppliers' credits. (!) Figures have been compiled from World Bank Appraisal and President's Reports at the time of Board approval. for Arab Economic Development, the OPEC ing its focus on projects benefiting the poorest Special Fund, the Saudi Fund for Develop- segments of the rural population, on institution ment, and the Venezuelan Investment Fund, building, and on local participation in project as well as with the financing agencies in coun- formulation. The CP assisted countries in the tries in North America and those that are preparation of about one-third of the agricul- members of the Organisation for Economic tural projects approved for Bank financing Co-operation and Development. during the year. Twelve of these were co- financed with the International Fund for Agri- Interagency Cooperation cultural Development (IFAD). The CP with the UN Educational, Scientific, The Bank has long-standing relations with and Cultural Organization (Unesco), the sec- UN agencies and programs concerned with ond largest and oldest CP, continued to em- various aspects of development work.(') In phasize education sector reviews and project some cases, these relations are defined by identification and preparation, and undertook formal agreement; more often, cooperation or assisted in 41 missions to 32 countries. In proceeds ad hoc, taking the form of joint mis- addition, the CP helped to appraise six educa- sions, country/sector/project consultations, tion projects and an industrial development fi- etc., to make the most effective use of the in- nance project, undertook three evaluation or formation, experience, and expertise available completion missions, and advised the Bank on within the UN system. the establishment of population education and Four Cooperative Programs are based on communications programs. formal interagency agreements approved by The main emphasis of the CP with the the Bank's Board of Governors. Each consists World Health Organization (WHO) continued of an agreed work program of country sector to be on the implementation of the 1977 UN surveys and of project identification and prepa- Water Conference resolution calling for safe ration carried out by a unit housed in the part- drinking water and adequate sanitation for all ner agency. The Bank bears about 75% of by 1990. With this objective in view, CP staff each program's costs. For fiscal 1979, the continued the preparation of "rapid assess- Bank's aggregate share was $7.3 million. ment" reports analyzing the current state of The Cooperative Program (CP) between the Bank and the Food and Agriculture Or- ganization of the United Nations (FAO), now 15 years old, accotinted for 60% of the total cost. During the year, the CP staffed and car- ")The Bank's relations with the United Nations Develop- m4nent Programme (UNDP) are disculssed in the next sec- ried out 1 69 miissions in 48 COLtntries, continu- inion ("Technical Assistance") of this chapter. Interagency Cooperation 105 water supply and sanitation facilities in over In the population sector, the Bank drew on 100 member countries, and assessing the needs reports on "needs assessments" by the UN and priorities required to meet the targets of Fund for Population Activities (UNFPA). the "International Drinking Water and Sanita- The Bank and UNFPA consulted on a number tion Decade" that begins in 1980. It helped to of projects, and a system of briefings was insti- prepare Interregional Cooperative Projects, to tuted for newly appointed UNFPA field coor- be financed by the United Nations Develop- dinators. The UN Children's Fund (UNICEF) ment Programme (UNDP) and by bilateral collaborated in appraising a population project donors, that are aimed at facilitating the co- in the Philippines and will co-finance the proj- ordination of national water development ect's primary health care component. Staff of plans. The CP also participated in sector and the United Nations Population Division as- project identification missions and in a survey sisted in reviewing a proposed population proj- of manpower and training needs in Western ect in Tunisia, while Bank staff cooperated in Africa. Apart from the CP, the Bank con- the appraisal being made by that Division of tinued its association, as fiscal agent and co- progress in the implementation of the World sponsor, with WHO's Special Programme for Population Plan of Action adopted by the 1974 Training in Tropical Diseases and with the World Population Conference. The Bank co- long-standing Onchocerciasis Control Program sponsored, with the Development Centre of to combat riverblindness in Western Africa. the Organisation for Economic Co-operation The CP with the UN Industrial Develop- and Development (OECD) and the Govern- ment Organization (UNIDO) essentially main- ment of Upper Volta, a seminar on migratory tained last year's level of activity, carrying out population movements in Western Africa. A or participating in 11 Bank missions in as many publication. "Changing Approaches to Popula- countries. In addition, the CP supported Bank- tion Problems," which examines shifts in strat- sponsored initiatives for the development of egies on population issues by national govern- small-scale employment-generating enterprises, ments and donor agencies since the 1974 particularly in Africa, South Asia, and ILatin World Population Conference at Bucharest, America, and helped to strengthen the con- was jointly prepared bv the Bank and the De- struction industry in five African and Middle velopment Centre. The Bank and UNICEF East countries. CP staff participated in a also worked together on a number of projects UNIDO-sponsored project identification effort in the nutrition field, while the World Food directed at certain European firms interested Programme provided "food for work" in sev- in transferring to developing countries the eral Bank-assisted projects in Asia and Latin technology for certain labor-intensive pro- America and the Caribbean. duction processes no longer competitive in To give practical effect to the results of re- Europe's high-wage environment. In a parallel cent Bank research, the Bank has become exe- activity, the Bank/UNIDO Group on Fertiliz- cuting agency for a UNDP-financed Global ers continued its work to provide data for mon- Project to demonstrate the feasibility of repli- itoring the fertilizer industry's capacity devel- cable low-cost water supply and waste disposal opments. The Bank and UNIDO joined in techniques in rural and urban fringe areas; organizing a global symposium on "Develop- projects are already being developed in eight ment Banking in the 1 980s" to assess the future countries, drawing heavily on local expertise. role of a large number of development finance In the transport sector, the International Civil companies, already established or to be estab- Aviation Organization cooperated in two avia- lished, in the developing countries. tion projects in Bolivia and Colombia. Other interagency cooperation involved a In the field of energy, Bank staff partici- number of areas and organizations. In the sec- pated in meetings of the International Energy tor of manpower and training, the Interna- Agency, at which it presented the Bank's ex- tional Labour Organization (ILO) provided a panded programs for oil and natural gas de- wealth of information, in particular on country velopment and discussed the organization of analyses of manpower needs, employment in worldwide energy data. small enterprises, urban management, rural The Bank and the International Telecom- vocational training, and income-generating munications Union (ITU) joined in a sector skills for women, for use in vocational and en- mission to study the telecommunications needs trepreneurial training projects in the nonfarm of Cameroon. Senior Bank staff took part in sector. The Bank and ILO continued to coop- ITU seminars for developing country techni- erate in improving country statistics on wages cians held in India and Europe. Bank staff dis- and employment. ILO staff took part in several cussed ways to provide technical assistance to Bank country and sector missions. nonagricultural extension services for the bene- 106 External Coordinationi aind Cooperation fit of small-scale enterprises with the ILO, the The Bank continued to participate in various European Development Fund, bilateral aid aspects of the work of the OECD and its agencies. and private institutions. L-inkages be- Development Assistance Committee (DAC). tween rural and urban development were the Bank officers and staff participated in more subject of a joint study-partly financed by the than 120 OECD and DAC mcetings, dealing Bank-with the OECD Development Centre. with a range of issucs from thc North-South Aspects of regional development were re- dialogue to aid statistics. Also important were viewed with UN regional commissions: Bank the consultations with the European Com- staff participated in meetings organized by the munities on country and sector problems in the Economic and Social Commission for Asia and areas in which Communitics' aid is concen- the Pacific (ESCAP) on economic projects trated. The exchange of country and economic and models in the Asia and Pacific Region and reports with the Communities was consider- co-sponsored with the Economic Commission ably expanded. for Latin America (ECLA) a conference on Relations with nongovernmental, nonprofit "A New Latin America in a Changing World organizations (NGOs) engaged in development Economy." cooperation were strengthened. Two Bank- In the trade area, cooperation with the organized meetings provided information on UNCTAD/GATT International Trade Centre Bank operations and policies with a view to (ITC) on export projects and measures to in- stimulating parallel NGO efforts, particularly crease exports in individual countries and in in the sectors of education and rural and urban selected trade regions stepped up sharply. An development. NGO field experience was drawn export promotion project was initiated in Por- upon in the preparation of nutrition projects in tugal with joint Bank-ITC financing. The Bank Africa and for consideration of various socio- organized an interagency meeting on the ef- economic problems, ranging from environ- fects of inflation and exchange rate fluctuations mental protection to the role of cooperatives in on trade analyses and on the establishment of agricultural development, and from the appli- a common unit in international price series and cation of low-cost technology to migration. index deflators for export earnings and trade A Bank delegation participated in the Fifth growth. It consulted with GATT regarding UN Conference on Trade and Development, a system being established at the Bank for which was addressed by the President of the the continuous monitoring of trends in Bank. The Bank was represented at the Inter- protectionism. national Conference on Primary Health Care Improvement of the data base is a contin- at Alma Ata (USSR), sponsored by WHO and uing feature of interagency cooperation. In UNICEF, and contributed to the preparatory addition to cooperation with the Inter-Organi- work of the UN Conferences on Science and zation Board for Information Systems, the Technology for Development and on Agrarian Bank agreed to co-sponsor a major UN en- Reform and Rural Development. The Bank deavor-the "National Household Survey Ca- provided the Economic Commission for Africa pability Program"'-designed to build national (ECA) with information on its techniques of capability in the developing countries to gather project appraisal, assistance in the recruitment economic data by households. The Bank also of experts, and access to relevant data for the agreed to join in an effort to formulate stand- preparation of the UN Transport and Com- ard nomenclature among all UN agencies munications Decade in Africa. As its contribu- dealing with socioeconomic development; this tion to the International Year of the Child, the will facilitate integration of the agencies' re- Bank published the World Atlas of the Child, search into a common fund of development providing socioeconomic data on the condi- knowledge. As a consequence of the continu- tions of children throughout the world. ing cooperation between the Bank and the UN In other developments involving coopera- Environment Programme (UNEP), the Bank's tion with elements of the UN system, the Economic Development Institute added to its Bank: curriculum a course on Environment and De- -contributed the World Development Re- velopment, environmental training compo- port as an aid in the formulation of a new nents were introduced in several Bank-assisted International Development Strategy which is projects, and seminars were organized to make to be adopted by the UN General Assembly staff more aware of environmental issues. The for the decade of the 1980s; and Bank, UNDP, and UNEP launched a program -opened an office in Geneva, Switzerland, to encourage development finance institutions in order to strengthen liaison with the UN, to adopt sound environmental guidelines in Geneva-based agencies of the UN system. their lending. and other UN organizations in Europe. Ititerniational Agricutltzural Research 107 Technical Assistance $42.9 million; this compared with 26 new projects for total commitments of $16 million Most Bank activities involve some form of in fiscal 1978. New projects included a global technical assistance. Country and sector work program to test and demonstrate small-scale, carried out by Bank staff in the course of nor- solar-powered pumping stations; a general mal operations provide borrowers with mate- study of low-cost water and sanitation meth- rial for economic policy formulation, defini- ods; and a study of river valley development tions of priorities, and choices of development in Togo and Benin. UNDP-financed, Bank- strategies. At the project level, Bank lending executed projects generated Bank lending results in transfers of production techniques, amounting to $401.5 million in calendar 1978. extension and monitoring programs, institution Technical assistance is extended also to building and the like, as well as of capital. All countries that do not need Bank financial sup- these technical assistance activities are an in- port. In fiscal 1979, the Bank and Kuwait tegral part of lending operations. entered into a technical cooperation agreement In many cases, however, Bank technical as- under which the Bank will extend, on a reim- sistance takes a discrete. identifiable form. In bursable basis, assistance for the preparation fiscal 1979, technical assistance components of a set of overall economic and sectoral included in loans or credits amounted to $359 long-range development strategies. The Bank million for 181 operations, compared with continued to implement other similar arrange- S324 million and 175 operations the previous ments agreed to in previous years with oil- year. Two-thirds of this amount was devoted to exporting countries that do not borrow from consultant services, about one-fourth to train- the Bank. ing programs, and the remainder to feasibility During the past year, the Bank continued to studies. The largest technical assistance opera- act as executing agency for planning advisory tions were in connection with an irrigation projects financed by the UNDP in Liberia, project in indonesia, a sugar rehabilitation Malaysia, the Philippines, Sudan, Swaziland, project in Kenya, and a potash plant in Jordan. Uganda, and Zaire. Similar assistanc was ,ive operations-credits to Bangladesh, Bu- provided to Burundi and Mauritania under rundi, Indonesia. Togo, and Zambia-were IDA credits. Two new UNDP-financed, Bank- approved exclusively for technical assistance executed planning projects became operational purposes for a total of $29.7 million. In fiscal in Lesotho and Jamaica. 1978, there were three such operations, aggre- The demand for planning projects reflects gating $20.3 million, the growing effort bv developing countries to As Bank lending has increased in the newer rationalize investment, improve sectoral co- sectors, weaknesses in borrowers' capacities to ordination, and implement growth-conducive complete project preparation and the need for socioeconomic policies. Planning projects are support for the entities responsible for prepar- also intended to bring about better distribution ing or carrying out the projects have become of the benefits of development, both socially increasingly apparent. The Bank created its and geographically. Thev are usually accom- Project Preparation Facility (PPF) in 1975 to panied by a variety of training programs, on- help overcome this problem. Under the facil- the-job, in-countr,v or overseas. These pro- ity, the Bank advances funds to meet gaps in are igned o ove the pro- proectprearaionandforinsituionbuid- grams are desig-ned to improve the technical project preparation and for institution build- and managerial expertise of national staffs, ing. The advances are repaid out of the loan for thus reducing dependencv on expatriate assist- the project concerned as soon as the loan be- ance. In fiscal 1979, over 150 suLch programs comes effective, were carried out. In the past fiscal year, the Executive Direc- tors approved both an increase in the limit of individual PPF advances, from $500,000 to $1 International Agricultural Research million, and a $15 million increase in the over- all commitment authority of the facility, bring- Increasingly, the need to improve and ex- ing it to $37.5 million. During the year, 34 pand food production in the developing coun- PPF operations were approved, involving ad- tries is recognized to be of highest priority. vances of $12.6 million. Population in most of the largest and poorest The Bank is acting as executing agency for a countries continues to grow faster than the growing number of United Nations Develop- production of food. The development of ap- ment Programme (UNDP)-financed projects. propriate agricultural technology making pos- During fiscal 1979, an additional 37 such proj- sible significant increases in crop yields con- ects were approved. involving commitments of tinues to be fundamentally important. 108 External Coordination and Cooperation The development of high-yielding dwarf This contribution is customarily made in two varieties of wheat and rice has been among the tranches-the first in February, and the sec- most important technological innovations in ond later in the year, allocating, up to the total agriculture in the past decade. It exemplifies amount authorized, the amounts required to the part agricultural research can play. Within meet the needs of individual centers after the 10 years of their introduction in the mid-1960s, other donors have made their commitments. those varieties were being grown on over one- The centers and programs supported by the third of the total area given to these cereals in Group, together with the amounts-if any- the developing countries. This represents 55 granted to them by the Bank in its first tranche million hectares, greater than the entire cereal- for 1979, are: growing area of Latin America. -the International Center for Tropical These varieties were developed initially at Agriculture (CIAT): $600,000; the two oldest of the 11 international research -the International Maize and Wheat Im- centers currently supported by the Consulta- provement Center (CIMMYT): tive Group on International Agricultural Re- $800,000; search (CGIAR). The CGIAR, which the -the International Institute of Tropical Bank continues to serve as Chairman and to Agriculture (IITA): $1,400,000; sponsor jointly with the Food and Agriculture -the International Rice Research Institute Organization of the United Nations (FAO) (IRRI): $350,000; and the United Nations Development Pro- -the International Livestock Center for gramme (UNDP). was organized to help im- Africa (ILCA): $800,000; prove the quantity and the quality of food -the International Laboratory for Research production in the developing countries. Orga- on Animal Diseases (ILRAD): nizations that comprise the CGIAR network $1,257,000; continue their research on developing high- -the International Board for Plant Genetic yielding varieties of the major food crops and Resources (IBPGR): $150,000; on farming practices and systems that will -the International Center for Agricultural make substantially increased production pos- Research in the Dry Areas (ICARDA): sible. At the same time, they are increasingly $1,600,000; giving emphasis to the development of tech- -the West Africa Rice Development Asso- nologies that will stabilize crop yields through ciation (WARDA); resistance to pests, diseases, and drought, -the International Potato Center (CIP); while requiring a minimum of purchased in- and puts, such as fertilizer and pesticides. -the International Crops Research Institute While research on wheat and rice has al- for the Semi-Arid Tropics (ICRISAT). ready had a large and widespread impact on The research activities conducted at the in- production, superior varieties of such crops as ternational centers encompass crops and ani- cassava and maize are now also being distrib- mals that account for 75% of the food supply uted, and these are expected to cover larger of the developing countries, and for a still areas in the future. New tillage methods for higher proportion of their protein intake. humid soils are now being tested on a pilot Initially, the international research centers de- scale in Western Africa. Socioeconomic re- velop crop varieties and farming practices that search programs are being expanded; these are applicable over wide environmental re- provide the biological scientists with a better gions. This technology is then adapted to the understanding of the farmers' problems and particular circumstances within a developing enable them to design improved technology country. and to monitor the impact of this technology It has long been recognized that a develop- on the social and economic well-being of the ing country can obtain the full benefit of the farmer. centers' research only if its own research The research programs supported by the efforts can effectively refine and adapt their members of the CGIAR continued to expand technology. The CGIAR is, therefore, estab- in fiscal 1979. The 29 contributing members lishing a new organization to begin operations of the CGIAR are expected to provide $100 in 1980-the International Service for Na- million in calendar year 1979 to the 11 organi- tional Agricultural Research (ISNAR). ISNAR zations funded by the Group. This is a 15% will complement the activities of other organi- increase over the previous year. The Bank's zations and aid donors in providing technical contribution, made from its profits transferred assistance to developing countries, at their re- to IDA, will be in the amount of $10.2 mil- quest, to strengthen their national agricultural lion as authorized by the Board of Governors. efforts so they can more effectively contribute Economic Research and Studies 109 to the application, by farmers, of improved its loans and credits are for projects located technology, appropriately adapted to their in or near cities. Nevertheless, the analysis of local circumstances. such projects continues to be carried out on a sectoral basis, and little is known about their Economic Research and Studies effects on the welfare of urban households. A major study financed by the Bank and under- The Bank's formal program of economic taken in collaboration with several institutions and social research has been in existence since in Colombia aims at establishing the spatial 1971. From that time to the present, approxi- and economic impact of a variety of policy mately 73 research projects have been com- measures. The research focuses on five com- pleted; a further 72 are continuing. In fiscal ponents of the urban economy: housing, 1979, 11 new projects were started. The re- transportation, employment location, the labor sults of completed research projects appear force, and the public sector, and analyzes the in a variety of formats, including articles in behavior of these components as well as their professional journals, books published under relationships in the case of Bogota, Colombia. World Bank auspices or by independent pub- Parts of the analysis are also being undertaken lishers, and World Bank Staff Working Papers. in Cali. Colombia, for the purposes of com- The World Bank Catalog, issued annually, pro- parison. The research will assist in the better vides detailed information on publications design of urban policies in Bogota. In addition, issued by the Bank, including reprints of se- its aim is to develop techniques of analysis lected articles by Bank staff. Information on that will make it easier for project analysts in current research projects is provided by the a variety of sectors to take better account of publication, World Bank Research Program: the spatial consequences of their project Abstracts of Current Studies, also issued an- decisions. nually. The results of Bank research are also In addition to its role as a lending organiza- disseminated through internal seminars and tion, the Bank plays a significant role as an international meetings. adviser to developing country governments. Research is undertaken by the Bank's own To provide better advice to these countries on research staff, usually in collaboration with the prospects for their manufactured exports, outside researchers who are mainly from de- a program of studies has been initiated that veloping countries. Projects are typically initi- will analyze ccrtain effects of significant in- ated by the Bank on topics of relevance to creases in imports of manufactured goods on its operations. The Bank does not provide product and factor markets in developed coun- research grants to outside individuals or tries. The studies will attempt to identify the institutions. economic, social, and other factors that lead to As the Bank's lending increasingly involves the rise of protectionist pressures in importing complex processes of social and economic countries. change, better understanding is needed of the An extensive review of all aspects of the mechanisms by which various policies have Bank's program of economic and social re- their impact. Also needed are techniques to search is nearing completion. Six specialized measure as carefully as possible the magni- external panels have reviewed past Bank re- tude of that impact. This may involve under- search in particular fields, and an overall ex- standing a whole network of socioeconomic ternal panel is completing a comprehensive relationships. Last year's Annual Report gave assessment, based in part on the findings of as illustrations research in health and rural the specialized panels. The result of this effort development. Similar work is under way in will be a broad evaluation of past research other areas, including urbanization and in- and a set of recommendations on the objec- dustrialization. tives of future research, the dissemination and The Bank is committed to assist in improv- application of its results, the relationship of ing the welfare of the urban poor in most of the Bank to other research institutions, and the the countries to which it lends, and many of size and balance of the research program. 110 Internal Activities Operations Evaluation the Bank has become increasingly attentive to the design of units that would be more eco- The Bank's Annual Report for fiscal 1978, nomical and appropriate for the purpose in- in discussing the Bank's system for evaluating tended. At a secondary level, borrowers are its operations, identified three major areas of being offered help in various ways to produce development. These included feeding the les- a project completion report that would con- sons of past experience, as they emerged from stitute the basic document for the evaluation the evaluation process, more effectively into of individual project experience. By encour- the design and implementation of future Bank- aging this borrower involvement, it is the in- supported operations; increasing borrower par- tention of the Bank to lend support to the ticipation in the Bank's evaluative process and development of an evaluation function in bor- encouraging the establishment of borrowers' rowing countries, as well as to improve the own evaluation functions; and the publication quality of each project performance audit. of the Annual Review of Project Performance Finally, a second regional seminar on evalua- Audit Results, prepared by the Operations tion for senior borrowing country officials was Evaluation Department (OED). Further pro- held in February 1979 for officials of anglo- gress continues to be made in these areas even phone member countries of Africa; the first as new fields for evaluation are being tested. such seminar was held for francophone Afri- The feedback process has now become part can members in February 1978. Requests have of the Bank's established procedures. In all been received from countries in other regions performance evaluation efforts, whether those that similar seminars be held in their areas. of individual projects or in deeper studies of OED has also begun to take a "second look" special issues, a tripartite exchange of views at completed projects by revisiting selected takes place among the Operations Evaluation projects some years after their completion in Department, the concerned operating staff of an effort to assess their direct and indirect the Bank, and the borrower and its agencies. socioeconomic effects and the views of bene- This intensive exchange provides an oppor- ficiaries. tunity for the lessons of experience to be The evaluation system in the Bank remains absorbed in the thinking of the various offi- comprehensive in its coverage of completed cials concerned even before the performance projects. Some 100 projects were reviewed in evaluation conclusions are formalized. The fiscal 1979. A computerized search system was implications of observed experience for future introduced to facilitate the retrieval of the operations in particular sectors are also re- points of special interest emerging from the viewed periodically by relevant operational individual project performance audit reports. staff. OED's Annual Review of Project Perform- The Bank's concern to involve the borrow- ance Audit Results was published for the sec- ing countries in the evaluation process is made ond time during the year. This Review covered manifest at three levels. One of the problems the experience of 109 operations supported by encountered in evaluating the results of indi- the Bank with loans and credits of approxi- vidual operations in a number of countries has mately $2,200 million. Including domestic been the inadequacy of baseline data and of financing, the projects represented total invest- institutional capacity to observe and analyze ments of the order of $8,500 million. change, making it difficult, therefore, to evalu- The Annual Review concluded that most of ate the impact of projects. Special efforts are the projects had been implemented success- continuing to be made by the Bank to intro- fully and were in operation. The Review em- duce monitoring and evaluation units at the phasized the diverse and complex microprob- project level, especially in sectors such as lems of development and, in that context, once agriculture, education, and urban develop- again underlined the need for adequate under- ment. Learning from experience with the ear- standing of the local conditions in which the lier project monitoring and evaluation units, Bank operates. The Review noted the active Int'l Centre for Settlement of Investmnent Disputes 111 Bank response to lessons of past experience, responsibility for developing and installing but stressed the need for extra caution and the changes in systems, procedures, and internal desirability of undertaking pilot projects in controls which it would be expected to review new areas of Bank endeavor. The Review also in a subsequent audit. made a case for the development of local capa- The Department's work program covers a bility and for a greater role by the borrower wide range of financial, administrative, and in the process of project identification, prepa- other Bank activities, including the supervisory ration, and implementation requiring a unique aspects of project implementation. Some activ- knowledge of the particular situation. ities are reviewed annually, whereas others are The Joint Audit Committee of the Board of reviewed biennially or every three years de- Executive Directors has maintained continu- pending on the materiality, volatility, or risk ing oversight of the OED work program and aspects of the activity. During the past fiscal of its effectiveness. The conclusions of the Joint year, IAD extended its review function to in- Audit Committee, the report of the Director- clude visits to selected countries to review the General, Operations Evaluation, on the statLs auditing standards applied by borrowers' ex- of the Bank's evaluation system, and OED's ternal auditors and to review related internal annual review of project performance audit auditing and financial reporting standards of findings were all reviewed by the Executive the borrowers. Directors. In carrying out each assignment, the Direc- tor of the Department and members of his Internal Auditing staff, as appropriate, have unrestricted access to all Bank records, documents, and personnel Internal auditing is an independent appraisal relevant to the activity under review. Where function within the World Bank that examines relevant, IAD coordinates its annual work pro- and cvaluates Bank activities by providing gram with the Bank's external auditors. Its management with information about the ade- working papers and reports are made available quacy and effectiveness of its overall system to the external auditors to assist them in plan- of internal control and the quality of perform- ning and conducting their examinations of the ance in carrying out assigned responsibilities, annuLal financial statements of the Bank. Iiai- The Internal Auditing Department (IAD) r-e- son is also maintained with the Joint Atudit ports to the Senior Vice President, Finance, Committee of the Executive Directors, which is and its Director has direct access to the Presi- responsible for satisfying itself that the Bank's dent and the Joint Audit Committee of the internal audit is adequate and efficient. Bank's Executive Directors at all times. IAD provides department directors and other levels Membership, Bank and IDA of management with periodic, independent. and objective audits, appraisals, analyses, rec- The Solomon Islands joined the Bank on ommendations, and information concerning September 22, 1978, and Cape Verde became the activities within their respective areas of a member of the Bank and IDA on November responsibility, including identifying possible 20, 1978, bringing the total membership of means of improving the efficiency and econ- the Bank to 134 and of IDA to 121. omy of operations and the use of resources. At the end of the year, action was pending In carrying out each operational audit, on membership in the Bank for Djibouti, IAD's examination and cvaluation of the ade- Dominica. St. Vincent, and Seychelles, and in quacy and effectiveness of the related systems IDA for Djibouti, Dominica, the Solomon of internal control generally cover such as- Islands, and the United Arab Emirates. pects of internal control as: (a) reviewing the reliability and integrity of financial and operat- International Centre for Settlement ing inf ormation and the means used to identify, of Investment Disputes measure, classify, and report such informationm (b) measuring the extent of compliance with During fiscal year 1979, the number of governing agreements or instruments and re- Contracting States increased by four to 75. lated decisions, regulations, policies, plans, By June 30, 1979, an additional five States had and procedures of the Board of Governors, signed the Convention on the Settlement of Executive Directors, and Bank management; Investment Disputes between States and Na- (c) reviewing the means of safeguarding Bank tionals of Other States, but had not yet rati- assets from various types of losses; and (d) fied it. appraising the economy and efficiency with At the 1978 Annual Meeting, the Adminis- which resources are used. IAD has no direct trative Council authorized the Secretariat to 112 Inlernal Activities administer, at the request of the parties con- The special efforts made in the last few years cerned, certain proceedings between States to change the nature of this representation re- and nationals of other States that fall outside sulted, by the end of fiscal 1975, in female the scope of the Convention. They are: (a) specialist staff numbering 168, or nearly 9% of conciliation or arbitration proceedings for the specialist staff. By the end of fiscal 1979, their settlement of investment disputes arising be- numbers bad increased to 272, or 11.4% of the tween parties one of which is not a Contracting total. Further efforts are being made to in- State or a national of a Contracting State; (b) crease the number of women in the staff in conciliation or arbitration proceedings be- specific project specialties. The Bank has re- tween parties at least one of which is a Con- cently been successful in placing women as tracting State or a national of a Contracting loan officers and as economists. This aspect of State for the settlement of disputes that do not recruitment will remain an important activity. directly arise out of an investment; and (c) The increase in the number and percentage fact-finding proceedings. of nonsecretarial staff from developing coun- The Centre's own Annual Report provides tries has also been encouraging. At the end of details of its membership and activities. fiscal 1975, there were 550 such staff from the developing countries, or 29.2% of the total. By Staff Developments the end of fiscal 1979, their number had in- creased to 775, or 32.5%. Bank staff come One of the major efforts of the Bank in its from 75 developing countries and 22 developed recruitment activities is to ensure the presence countries. of highly qualified staff and a wide spread of nationals from its member countries. In its promotional recruitment activities, the Bank Young Professionals Program works through national contacts designated by The effort to increase the share of female member governments and through informal membr goernmnts nd troug infrmal and developing country representation is also means. Visits are regularly made by the Bank's andeloigcutyrpsnainislo Europeans. Visireruitmenty offie to sores iank apparent in the activities of the Young Profes- European recruitment office to sources In sionals Program. This program is the channel nearby countries, and recruitment missions are through which the Bank recruits professional regularly undertaken in Africa, Asia, and staff below the age of 31. Although most Latin America. During fiscal 1979, some 600 Young Professionals are highly trained econ- employees joined the Bank, of which almost omists or financial analysts, many other skills half filled specialst-level positions. The major- are represented in their number. In fiscal ity of these employees were highly successful 1979, 48 men and women were given appoint- mid-career professionals in their countries. ments in the Program. Seventeen men and Personnel most widely recruited during the eight women are from 10 mostly industrialized past year included technical staff, economists, countries; 19 men and four women are from and financial analysts, developing countries. Three developing coun- tries (Singapore, Venezuela, and Zaire) were Employment of Women and Nationals represented in Young Professionals recruit- of Developing Countries ment for the first time. As a particular feature, the Bank aims at strengthening the representation of staff mem- Staff Compensation bers from developing countries and of women in nonsecretarial positions. In its earlier years, The determination of appropriate compen- most of the Bank's specialist staff came from sation for an international institution, with developed countries, and were mainly males. staff drawn from some 100 countries with Specialist-level Women and Developing Country Nationals Employed by the Bank, by Number and Percentage June 30, June 30, June 30, June 30, 1976 1977 1978 1979 Total specialist-level staff 2,066 2,203 2,290 2,382 Female staff 188 221 256 272 Female staff (%) 9.1 10.0 11.2 11.4 Developing country nationals 624 676 734 775 Developing country nationals (%) 30.2 30.7 32.0 32.5 Staff Developments 113 widely differing pay levels, is both a complex and which has now been put into operation. In and delicate task. Because the annual staff accordance with this system, a survey of com- compensation review was becoming time con- pensation of comparator organizations will be suming and divisive, the need to formulate a set in motion before the end of calendar 1979 soundly based policy framework that would as the basis for establishing a compensation be broadly acceptable to all parties with a structure consistent with the principles now es- legitimate interest-staff, management, and tablished. The Executive Directors agreed to member governments-and within which de- approach once more those few member gov- cisions could be made quickly and rationally, ernments whose Bank staff members are liable became an urgent one. for income tax to exempt these nationals from Accordingly, in August 1977, the Executive taxation, or at least to compensate the Bank Directors of the Bank and the International for the expenditure it incurs by the fact that it Monetary Fund (IMF) established a Joint reimburses income tax paid by its staff. It was Committee on Staff Compensation Issues un- further agreed that should the governments de- der the chairmanship of Alexandre Kafka (an cline to exempt their nationals from taxes on IMF Executive Director) to examine the prin- Bank income, then the system of tax reim- ciples that should govern staff compensation, bursement allowances, which applies to ap- in all its aspects, in the Bank and in the IMF. proximately 25% of Bank staff, and which The report of the 13-member committee, amounted to about $21 million in fiscal 1979, which was completed in January 1979, em- will be changed as of January 1, 1980. The bodies a set of far-reaching recommendations Executive Directors agreed, furthermore, to on the complex issues involved. The Executive some improvements in the benefits package, Directors of the Bank, after discussions on the while commissioning further studies in other report, later agreed on a new framework within areas. Finally, the Executive Directors urged which staff compensation decisions will be the speedy conclusion to a study on the feasibil- taken with a greater degree of automaticity ity of establishing an independent Administra- and less scope for controversy than hitherto tive Tribunal to adjudicate staff grievances. 114 Executive Directors Executive Directors ing the year included: a lending program to accelerate petroleum production in the devel- With the exception of certain powers spe- oping countries, the financing of national min- cifically reserved to them by the Articles of eral exploration funds, a system to distribute Agreement, the Governors have delegated exchange rate risks equitably among borrow- their powers for the conduct of the general ers, and a currency scheme for disbursement operation of the Bank to a Board of Executive of loans to certain development finance com- Directors that performs its duties on a full- panies to stimulate industrial lending. time basis at the Bank's headquarters. There The Executive Directors decided that in are 20 Executive Directors: as provided in the fiscal 1979, the Bank should continue to ad- Articles of Agreement, five are appointed by here to the same guidelines for grace periods the five members having the largest number of and final maturities on loans as were applied shares, and the rest are elected by the other in fiscal 1978, but allow for greater flexibility members. The President of the Bank is the in their application to individual countries; Chairman of the Board. also, that the preference for domestic contrac- Policy is decided by the Executive Directors tors in the evaluation of bids for construction within the framework of the Bank's Articles contracts, following international competitive of Agreement. The Directors consider and bidding, be continued for a further three-year decide on the loan/credit proposals made period and be reviewed again at that time. by the President. They are also responsible Major policy decisions that the Directors take for presentation to the Board of Governors at annually include the allocation of the Bank's its Annual Meetings of an audit of accounts, an net income, the Bank's lending program, ad- administrative budget, and the Annual Report ministrative budgets, staff compensation, and on the operations and policies of the World the Bank's research program. Bank, and any other matter that, in their judg- In fiscal 1979, the Executive Directors met ment, requires submission to the Board of on 54 occasions in formal session, during Governors at the Annual Meetings or other- which they reviewed and approved 142 Bank wise. loans totaling $6,989.0 million and 105 IDA The most important policy action, reflecting credits totaling $3,021.5 million. The latter more than two years of deliberations, was included $175 million from the "Special Ac- reaching agreement on the size and terms of a tion Account" that IDA administers on behalf general capital increase .to be proposed to the of the European Economic Community and Board of Governors, to permit the continued its nine member countries. The Account is growth of the Bank's operations. In arriving at designed to meet the immediate needs of low- their consensus on this matter, the Executive income countries, especially those whose devel- Directors reflected the strong support ex- opment is being hampered by the lack of pressed previously by representatives of the foreign exchange. Also reviewed and approved developing countries, the heads of government were 16 grants for international agricultural of major developed countries, and participants research and one grant for control of onchocer- in the North-South dialogue on an increase in ciasis in Western Africa. The Executive Di- the capital base of the Bank sufficient to permit rectors also approved borrowings totaling an increase in lending in real terms. The Execu- $5,084.8 million. tive Directors approved a report to the Board As part of their continuing attention to the of Governors providing for a $40,000 million appropriateness and soundness of the Bank's equivalent increase in the Bank's authorized policies, practices, and procedures, the Execu- capital stock; the corresponding draft resolu- tive Directors maintained their interest in the tions authorizing the increase will be voted operations evaluation of the Bank. Among upon by the Governors. (See also, page 10.) other things, they considered the third annual Other important and innovative operational report of the Director-General, Operations policy matters on which action was taken dur- Evaluation, the Fourth Annual Review of Joint Audit Committee 115 Project Performance Audit Results, and they of the External Advisory Panel on Education considered and approved the fiscal 1979-80 and the Bank's borrowing program. operations evaluation work plan. Other annual A list of the Executive Directors and Alter- reports with which the Directors dealt related nate Executive Directors, showing their voting to project implementation and supervision, the power and the countries they represent, with activities of the Joint Audit Committee, the notations of changes since the last regular Bank's financial statements, the Economic De- election of Executive Directors, appears on velopment Institute, and the Staff Retirement page 198. Plan. The Executive Directors considered a progress report on the Bank's environmental activities and generally endorsed the Bank's approach. Joint Audit Committee Responding to market needs and the strong The Joint Audit Committee was established interest expressed by users, the quarterly pub- in 1970, essentially to represent the Bank's lication of the operational summary of pro- shareholders in maintaining vigilance over the posed Bank and IDA projects, which was soundness of the Bank's financial practices and approved by the Executive Directors, is now procedures. In pursuing its responsibilities dur- published monthly with the business edition ing fiscal 1979, the Committee nominated a of the publication, Development Forumr, which firm of private, independent, internationally is published by the United Nations in Geneva. established accountants to conduct the annual (The monthly summary is also available sep- audits of the Bank, IDA, and IFC, discussed aratety, on a subscription basis.) The Asian with them the scope of their examination, and Development Bank and the Inter-American reviewed with them the annual audited finan- Development Bank have expressed interest in cial statements and the opinions thereon. In joining in this broader information venture. addition, through meetings with the Bank's The Executive Directors discussed the first senior financial officers, the Committee sought of the World Development Reports, a system to ensure that the Bank's financial affairs are of annual major studies of development issues, properly conducted. It clarified issues relating strategies, and problems begun by the Bank in to the valuation of the capital of the Bank and 1978. and agreed that the Report should be IDA in order to facilitate future Board dis- transmitted to the Development Committee for cussioins on this subject. its consideration at its ministerial level meet- The Committee is also charged with the re- ing in September. In addition, they discussed sponsibility of satisfying itself that the Bank's the joint Bank/Fund study on "Stabilization of internal audit and operations evaluation are Export Earnings," which was considered by the adequate and efficient. It, therefore, reviewed Development Committee at its Washington the work programs of the Internal Auditing meeting, and in which the Directors partici- and Operations Evaluation Departments, the pated. The Directors considered a review of work in progress, desirable standards, and pro- the performance of the Development Com- cedures of reporting. It reviewed most papers mittee which, with a corresponding draft produced by the Operations Evaluation De- resolution, was transmitted to the Governors partment, and identified those giving rise to for a vote during the 1978 Annual Meetings. policy issues that may be considered by the They also received a status report on the Executive Directors. Through a subcommittee, World Development Report for 1979. it gave special attention to Project Perform- The Directors received a briefing on dis- ance Audit Reports to determine how well the cussions concerning the Sixth Replenishment Operations Evaluation Department carries out of the Resources of IDA, and reports on a its assessment of individual projects. number of international meetings, including The Committee provides a continuing chan- the Conference on Technical Cooperation nel through which the internal and external among Developing Countries, the sessions of auditors may communicate with the Executive the United Nations General Assembly, the Directors should the need arise. It meets as United Nations Development Programme's frequently as necessary, normally once a Governing Council, and the United Nations month. The Committee consists of six Execu- Educational, Scientific, and Cultural Organ- tive Directors appointed by the Board for a ization, and of the meeting of the Caribbean term of two years after each regular election Group for Cooperation in Economic Develop- of Executive Directors. In December 1978, ment. They also met informally as frequently Earl G. Drake succeeded Timothy J. Thahane as required; topics covered included the report as Chairman of the Committee. 116 Borrowings and Finance Income, Expenditures, and Reserves: Bank serve. Of the $238 million earned in fiscal 1978, the Bank allocated $138 million to the The Bank's gross revenues increased by $478 General Reserve, and the Bank's Board of million in fiscal 1979 to a new high of $2,425 Governors approved a transfer of $ 100 million million. The level of gross revenues has con- as a grant to IDA. On June 30, 1979, the Gen- tinued to rise during the past decade as loans eral Reserve of the Bank amounted to $2,206 and investments have expanded. The figure in million. fiscal 1979 was almost five times greater than Investment income totaled $744 million, up in fiscal 1970. $130 million, or 21.2% in the year. The Bank's Compared with fiscal 1978, the outstanding investments rose $962 million to a total of loan portfolio grew about 18% during 1979, $9,738 million on June 30, 1979. Average total reflecting the higher loan commitments made return on investments, including realized capi- during recent years. Together with the higher tal gains or losses, was 7.6%, up from 7.0% return on investments, the income from this in fiscal 1978. This reflected higher interest increased loan portfolio resulted in a 25% in- levels in the major capital markets. crease in gross revenues, while operating costs In fiscal 1979, income on loans rose to rose only 18.1 %. Net income of $407 million $1,669 million, compared with $1,325 million was 71 % over that of fiscal 1978. in fiscal 1978. The average return on outstand- The Bank does not trade in the currencies ing loans in the period was 7.8%, compared of its member countries for its own account. with 7.6% the year before. The Bank's lend- Under present policies, adjustments arising ing rate formula now requires a positive spread from translation of currencies to US dollar of 0.5% between the cost of funds borrowed equivalents would not now, or in the future, by the Bank during the preceding 12 months result in realized gains or losses such as would and the interest rate charged on the Bank's result from the actual conversion into US loans to member countries. Since the formula dollars. A more detailed explanation of these became effective (July 1, 1976), the lending policies is given in the "Notes to Financial rate, which is reviewed quarterly, has ranged Statements" (page 162). from a high of 8.9% in the first quarter of Because of this policy, the General Reserve, 1977 to a low of 7% in the third quarter of fis- rather than net income, was credited in an cal 1979. During the final quarter of fiscal amount of $137.5 million in fiscal year 1979, 1979, it was set at 7.9%. These changes in the representing translation adjustments arising lending rate at which the Bank's loans are com- from currency appreciations and deprecia- mitted reflect the variations in the approximate tions. This compares with a credit of $123.6 cost of borrowings to the Bank in the world's million in fiscal 1978. Following the effective- capital markets. ness on April 1, 1978 of the Second Amend- Other income of the Bank was $11.8 million. ment to the Articles of Agreement of the Expenditures of the Bank amounted to International Monetary Fund, the Bank de- $2,018 million, an increase of $310 million, or cided for purposes of the financial statements nearly 18%. A rise of $286 million in interest to express its capital stock on the basis of the and issuance costs on the Bank's borrowings, special drawing right (SDR). As a result, the to a total of $1,846 million, accounted for I% portion of the Bank's capital stock that most of the increase in expenditures in the was paid in US dollars, together with the 9% year. The continuation of the borrowing pro- portion of the capital stock that has been re- gram that has added $11,634 million to out- leased by certain member countries for lending standing borrowings in the last three fiscal in US dollars, has been revalued at the rate of years was the principal cause of the rise in exchange of the US dollar to the SDR at June fixed charges. 30, 1979. The compensating adjustment result- Continuing inflation and an expansion in ing from this revaluation, amounting to $22.8 some of the Bank's operations caused a further million, was charged against the General Re- increase in administrative costs of the Bank The Bank's Borrowings-Fiscal 1979 117 during the past fiscal year. These costs totaled The Bank's Borrowings-Fiscal 1979 $172 million, up $24 million, after deducting $121 million received as a management fee The borrowings by the Bank in fiscal 1979 charged to the International Development As- totaled the equivalent of $5,085 million. Of sociation, and $2 million charged to the Inter- this amount, $796 million equivalent was national Finance Corporation as a service and borrowed in May and June 1979 (of which support fee. $456 million equivalent will be settled in fiscal 1980), and will be credited to the Bank's bor- Other Financial Operations: Bank rowing program for fiscal 1980. Most of the Loans held by the Bank on June 30, 1979 advance funds were borrowed in Japan to take totaled $44,660 million, including $5,522 mil- advantage of favorable factors in the Japanese lion of loans not yet effective. Effective loans investment market. held by the Bank totaled $38,655 million, after The aggregate of gross borrowings in the excluding $483 million of effective and out- five fiscal years. 1975-79, was $20,763 million, standing loans to the International Finance compared with $7,423 million in the preceding Corporation, of which $415 million has been five years. This higher rate of borrowing in the disbursed. capital markets supported the growth in the Loan disbursements to countries in the past Bank's financial requirements arising from the fiscal year aggregated $3,602 million, a new expanded lending operations during the five high, and $815 million higher than in fiscal years ended June 30, 1979. 1978. If fiscal 1979 disbursements were ex- Most World Bank borrowings for fiscal 1979 pressed in terms of 1978 dollars, they would took place during the first half of the year. By have totaled $3,317 million. November 1978, the Bank successfully met its Total disbursements to countries since the public and private capital market borrowing start of Bank operations stood at $28,635 mil- target of $3,600 million. Once again, favorable lion at June 30, 1979. market conditions in Japan. Germany, and Repayments of principal on the Bank's loans Switzerland were important factors in com- aggregated $978 million in the year: $843 mil- pressing public and private capital market lion repaid to the Bank and $135 million to in- borrowings into a relatively short period. vestors who had purchased portions of loans. The $5,085 million in borrowings since July Cumulative repayments on loans by June 30, 1, 1978 consisted of $1,171 million equivalent 1979 were $7,322 million to the Bank and denominated in Deutsche mark; $1,702 mil- S2.560 million to purchasers of loans. lion equivalent denominated in Japanese yen; Sales of participations in new loans and $1,546 million equivalent denominated in of maturities from the Bank's loan portfolio Swiss francs; and $666 million in United States amounted to $45 million in fiscal 1979, com- dollars. all but $ 16 million of which was raised pared with $189 million in the previous year. through two international placements. After cancellations and adjustments for Of these borrowings, $3,768 million repre- changes in values of nondollar currencies, but sented new funds, and $1,317 million repre- including $38.2 million of aid participations by sented refinancings of outstanding borrowings the Kingdom of Norway, the cumulative total with the Deutsche Bundesbank, the Central of loan sales was $2,976 million equivalent at Bank of the Federal Republic of Germany; the end of the year. The Bank of Japan: and two sales totaling $65(0 The level of the Bank's liquidity position is million of two-year bonds to central banks. determined by an established policy that re- The borrowing operations during fiscal 1979 quires it to maintain liquid holdings at any included 24 public issues or private placements given time, equal to a minimum of 40% of throughout the world, totaling the equivalent estimated borrowings for the subsequent three of $3,440 million, or 68% of total funds years. The objective of this policy is to ensure raised. There were 10 issues placed with offi- that the Bank is in a position to meet ade- cial sources, such as member governments of quately temporary downward fluctuations in the World Bank, central banks, and govern- cash flow. The Bank's liquidity position in- ment institutions, totaling $1,629 million, or creased by $893 million in fiscal 1979 to a 32% of the funds raised. total of $9,750 million on June 30, 1979, net Included in the Bank's program was the larg- of commitments for settlement. The Bank's est single public offering of bonds by the World liquidity stands at the level of about 51% of Bank in any market-a public issue in Japan the next three years' net cash requirements. It of y75,000 million, or about $366 million is intended to bring this ratio down to the 40% equivalent. Another transaction, a borrowing range over the next several years. of y70.000 million, represents the largest pri- 118 Borroiwings and Finance vate placement by any issuer in the Japanese syndicated loan market. During the final month WUS$millorld BiscanG Bor gs,19 of fiscal year 1979, the World Bank also con- (05$ millions. Fiscal years.) cluded the largest combined long-term borrow- ing operation in its history, totaling YI 15,000 million, or $524.2 million equivalent. The transaction included a '70,000 million loan 6,000 from a consortium of Japanese trust banks and 5,085 insurance companies, a Q-30,000 million loan from a consortium of Japanese trust banks, and a yV15,000 million private placement of bonds with a group of Japanese trust banks. The in- vestment market in Japan was the largest sup- 4,721 plier of borrowed funds to the Bank in fiscal 5,000 1979. Six borrowing operations were done in - the Japanese market; they totaled Y290,000 million, equal to $1,401 million. During fiscal 1979, the Bank also concluded its largest Deutsche mark multi-tranche bor- 3,636 rowing operation in the German market in the amount of DM900 million, or about $436 mil- lion equivalent. In Switzerland, the Bank made 3,506 its largest public offerings, two public issues of SwF250 million each, totaling about $295 mil- lion equivalent. A total of $1,727 million equivalent of debt matured during the year, with maturing two- year dollar bonds, held by central banks, and notes, placed with the Deutsche Bundesbank, 3,000 accounting for the larger part of this sum. Of the remaining amount, $184 million equivalent of market issues matured during the period: DM200 million of a loan previously placed with a Girozentrale in Germany and $75 mil- lion of 4.25% 21-year bonds sold in the US market in 1958 in an original amount of $150 2,000 million. Additional debt, aggregating $123 million, 1,359 was retired by means of sinking fund and pur- 1,359 - chase fund operations. Outstanding obligations of the Bank in- creased $3,678 million to $26,280 million as of June 30, 1979. On that date, estimates indi- 1,000 cated that 25% of the Bank's obligations were held by investors in Germanv, 22% in the United States, 16% in Switzerland, 13% in 490 Japan, and 6% in Saudi Arabia. The remaining 18% of outstanding borrowings were held by investment institutions. including central banks and government institutions in more than 80 countries. Borrowing Costs: Bank The Bank's borrowing costs in the fiscal year, weighted by amount and maturity, aver- aged 6.54%, compared with 6.95% in the pre- vious year. Borrowing costs in fiscal 1979, Finances: IDA 119 weighted by amount only, were 6.39'. The Australia Indonesia (SDR77.9 miillion) (SDR16S.8 milliin) average cost of all funds to the Bank, including Bahrain 1R1land paid-incapitaladaccumulated earnings, was (SDR7.8 million) (SI)R23.4 millioni) paid-in capital and acruaeerntg,ws Bangladesh Ja~pan about 5.98%. (SDR17.5 million) (SDR330 9 millioni) Belgium Lutxembourig (SDR172.3 million) (SDR9.7 millioni) BuLrma New Zealanid (SDR8.4 million) (SDR4.6 milliont Chiile Norwav Capitalization (SDR29.7 million) (SDR36.1 million) lDenmark l' kistan In the Articles of Agreement of the Bank, FinR.d million) p(1SDR51.9 million) the capital stock is expressed in terms of the (SDR17.3 millioni) (SDR3.5 million) Germany. Federal RePLIbliC Of P'ortuigal United States dollar of the weight and fineness (SDR395.9 million) ISDR32.6 milliono) Ghana ~~~~~~~Saudli Arabia in effect on July 1, 1944 (1944 dollars). Until (SDRI2.2 millioni) (SDR375.6 - illion) 1971, the current United States dollar had the Greece South Africa (SDR2O.9 millionl) (SDR73.3 mnillion) same value as the 1944 dollar and the special [celand Thailand drawing right (SDR), which was instituted in SIDR3i8million) UniteldStatemillion) 1969. In 1972. the current dollar value of (SDR233.3 milliori) (SDR135.1 million, the 1944 dollar and the SDR increased to $1.08571, and in 1973 to $1.20635, as the re- sult of the first and second devaluations of the Finances: IDA dollar. Until mid-1974. both the 1944 dollar and the SDR continued to be valued in gold Credits amounting to $ 16.937 millioni w ere and had the same gold value. Thus on July 1, held by the Association on June 30, 1979, in- 1974, the value of the SDR, expressed in tcrms cluding credits not yet effective and exchange of United States dollars. was $1.20635, which adjustmcnts of $485 million. Effective creLlits was the equivalent of one 1944 dollar. totaled $15,241) million. including $5.575 mil- Since July 1, 1974, when a valuation method lion as yet undiisbursecd. Credits approved. but for the SDR that was based on a basket of 16 not yet effective. were S 1.697 million at year's major currencies was adopted, the valuc of the end. SDR has fluctuated daily. The current dollar Disbursements were $1.222 million as com- value of the 1944 dollar, on the other hand, pared with $1,062 million in the year before. was deemed to remain fixed at the rate estab- If 1979 figurcs werc expressed in tcrms of 1978 lished by the US par value legislation of 1973. dollars. they would total 1.1 25 million. Aggre- Since the effcctiveness, on April 1. 1978, of gate disbhLrsements on June 31). 1979 were the Secondi Amendment to the Articles of 59,787 million. Agreement of the International Monetary The total resources providced to IDA in- Fund (IMF), currencies no longer have par creased S1,613 million in the period, primarily values, and the basis for translating the 1944 from subscriptionis andi contributions to the dollar into current United States dollars no Fifth Replenishment. which aggreggated $S7.41 2 longer exists. The Bank is examining the im- million. The valuc ol rcsourccs provided by plication of this change on the valuation of its members in prior fiscal years increascd by capital stock and the impact it will have on its $341 million. The World Bank granted $S11)11 financial statements. million to IDA from its fiscal 1978 net in- For purposes of the financial statements. the come, of which $88.1 million wVas for the oen- Bank has expressed the value of its capital eral purposes of the Association and $1 1.9 stock on the basis of the SDR in terms of million was for grants by IDA for agricultural United States dollars as computed by the IMF research and onchocerciasis control. ($1.29110 per SDR) on June 31). 1979. Norway made $8.3 million available to IDA T he Bank's subscribed capital was increased in fiscal 1979 by purchasing. on a grant basis. by SDR2,330.5 million in fiscal 1979. In- a participation in a crelit to Benin. This par- cluded were the original subscriptions of Solo- ticipation was made under the terms of thc aid mon Islands (SDR1.7 million) and Cape Verde cooperation agreement between the Kingdom (SDR1.6 million). which became members of Norway and the World Bank and IDA. As during the year, and Portugal (SDR19.8 mil- of Junc 31). 1979, aggregate participation in lion), which took tip its allotted subscription IDA credits by Norway under the agreement increase under a resolution adopted by the totaled $51.8 million. Board of Governors in 1970. Other resources that became available to The remaining SDR2_30)7.4 million repre- IDA during the fiscal year totaled $35 million, sented subscriptions taken up under resolutions and were derived from releases by Part 11 adopted by the Board of Governors in 1977: countries and cancellations of and repayments 120 Borrowings and Finance on credits, (') after taking into account a net de- The US Market. Thirty percent of all for- crease of $34.6 million in resources provided eign bonds, $6,162 million, were issued in the by operations. United States, compared with 48%, or $7,668 million, in 1977. During 1978, public offer- Foreign and International Bond Markets- ings totaled $4,685 million and private place- Calendar 1978 ments, $1,477 million. Borrowing in foreign and international bond Industrialized countries raised $5,231 mil- markets(2) during 1978 totaled $36,668 mil- lion, or 85% of all foreign bonds issued in the lion, only slightly more than the $36,094 United States. As in previous years, Canadian million raised in 1977. This is in contrast with borrowers raised the largest amount of funds the 1975-76 period, when substantial growth ($3,226 million). Large amounts were also in the bond markets was recorded: total vol- secured by borrowers from the United King- ume of issues increased from $22,821 million dom ($606 million) and Norway ($485 mil- in 1975 to $34,311 million in 1976. Foreign lion). The average initial offering yield on bonds issued in national capital markets in- public offerings during 1978 increased from creased substantially in 1978, from $16,610 8.47% in the first quarter to 9.21% in the final million in 1977 to $20,796 million. Interna- quarter. Almost half of the bonds issued by tional bonds declined from $19,484 million in industrialized countries ($2,462 million) had 1977 to $15,872 million in 1978. The increase an original maturity over 15 years. in foreign bonds was primarily due to increased Issues by developing countries declined borrowing in the Japanese and Swiss capital from $817 million in 1977 to $320 million in markets, while the slowdown in international 1978. Israeli borrowers raised $165 million, issues was the result of a lower volume of US with smaller amounts obtained by borrowers dollar-denominated bonds. from Mexico ($90 million), Trinidad and To- bago ($40 million), and Spain ($25 million). Borrowing by international organizations Foreign bonds issued in national capital also declined, from $1,917 million in 1977 to markets in 1978 amounted to $20,796 million, $605 million in 1978. The World Bank, which and consisted of public offerings of $12,218 raised $1,350 million in 1977, did not borrow million and private placements of $8,578 in the US market during 1978. Its borrowing million. was instead concentrated in the German, Swiss, During 1978, foreign bonds were primar- and Japanese markets, where lower interest ily issued by central governments ($7,067 rates prevailed. million), international organizations ($5,468 million), and private nonfinancial enterprises The Swiss Market. Foreign bonds issued in ($2,951 million). During 1977, main borrowers Switzerland increased 42%, from $4,959 mil- had been international organizations ($4,748 lion in 1977 to $7,064 million in 1978. Private million), central governments ($3,787 mil- placements far exceeded public offerings- lion), public nonfinancial enterprises ($2,335 $4,351 million, compared with $2,714 million. million), and private nonfinancial enterprises Slightly less than two-thirds of all foreign ($2,195 million). bonds in the Swiss market ($4,504 million) The purpose of most borrowers was consid- were issued by industrialized countries. Japa- ered as "general" purpose ($8,091 million), nese borrowers were the most active, raising international organizations ($5,468 million), $1,167 million. All Japanese borrowers were banking and finance ($2,448 million), and in- private enterprises. Issues were mostly private dustry ($2,129 million). During 1977, the placements convertible into common stocks of main purpose of borrowers was "general" pur- the borrower. Issue size ranged from SwF pose ($5,502 million), international organiza- 20 million to SwF100 million, with original tions ($4,748 million), banking and finance ($1,766 million), public utilities ($1,735 mil- (')If the SDR were to be substituted for the 1960 dollar, the lion), and industry ($1,491 million). amount repayable in SDRs would be determined on the Over 90% of foreign bonds were straight basis of the currentcy diswousled be adjusted on the basis of issues. Issues convertible into common stocks the SDR rate established by the IMEF for the US dollar on that date. For determining the amount to be paid by of the borrower, or with warrants attached, the borrower with respect to principal and charges in a totaled$875 milion. Secial pacement of previously agreed currency, the SDR rate for that cur- totaled $875 million. Special placements of precy on she date payment is due would be used. The international organizations with central banks amortization schedules and service charges would be computed in SDRs. and governments or monetary authorities (5)The terms "foreign" and "international" in this context amounted to $801 million. Floating rate notes refer to issues sold outside the country of the borrower: foreign, if sold in one national market; international, if totaled $140 million. in more than one. World Bank Borrowings (table) 121 World Bank Borrowings- Fiscal Year 1979 (In millions) Currency of US dollarM2) Issue issue equivalents Public Offerings Germany, Federal Republic of 5.75% six-year bonds, due 1984 DM200.0 96.9 6% 10-year bonds, due 1988 DM200.0 96.9 6.25% 10-year bonds, due 1988 DM400.0 212.3 Japan 6.50% 15-year bonds, due 1984/93 c75,000.0 366.4 Switzerland 4.25 % 15-year bonds, due 1993 SwF250.0 143.4 4% 10-year bonds, due 1988 SwF250.0 151.8 4.625% 10-year bonds, due 1989 SwF100.0* 58.1 Total Public Offerings 1,125.8 Placements with Central Banks and Governments Germany, Federal Republic of 6.60% note, due 1983 DM250.0 122.6 7% note, due 1984 DM250.0 136.1 Japan 6.14% yen obligation, due 1985 y30,000.0 158.1 6.53% yen obligation, due 1985 V30,000.0 141.3 Other 4.0625% note, due 1984 SwF100.0 55.8 4.0625% six-year bonds, due 1984 SwF125.0 76.9 3.375% note, due 1984 SwF200.0 131.9 7.375% seven-year bonds, due 1986 DM300.0* 156.6 International(2) 8.35% two-year bonds, due 1980 $350.0 350.0 9.85% two-year bonds, due 1981 $300.0 300.0 Total Placements with Central Banks and Governments 1,629.3 Other Germany, Federal Republic of 6.25% loan, due 1983 DM500.0 242.1 4.50% loan, due 1980 DM200.0 108.9 Japan 7.60% loan, due 1998 ef30,000.0 148.4 7.60% loan, due 1998 V70,000.0 361.9 8% loan, due 1994/99 Y30,000.0* 136.7 8.10% loan, due 1994/99 V40,000.0* 182.3 8% loan, due 1994/99 V12,000.0* 54.7 8.10% loan, due 1994/99 Y18,000.0* 82.1 8.06% bonds, due 1994/99 Y15,000.0* 68.4 Switzerland 4.125% notes, due 1985 SwF300.0 158.9 4% notes, due 1983 SwF100.0 53.4 4.125% notes, due 1985 SwF150.0 83.7 4.25% loan, due 1984 SwF100.0 55.8 4% loan, due 1986 SwF100.0 57.4 4% loan, due 1986 SwF100.0 60.7 3.75% notes, due 1986 SwF200.0 134.4 3.875% loan, due 1986 SwFI25.0 78.4 3.50% notes, due 1985 SwF300.0 188.2 4.50% loan, due 1986 SwF100.0* 57.5 Total of Other Placements 2,313.9 Add: Interest Subsidy Fund 8.50% loan, due 1977/2001 15.8 Total Borrowings, Fiscal 1979 5,084.8 * These borrowings were made in May and June. 1979, but will be credited to the World Bank's borrowing program for fiscal year 1980. (') Based on official rates at time of borrowing. (2) These two-year bond issues were placed with central banks, government agencies, and with international organizations. 122 Borrowings and Finance maturities of four to seven years. Significant ing markets: Federal Republic of Germany sums were also obtained bv borrowers from ($1,631 million), the Netherlands ($448 mil- Austria ($673 million), Norway ($485 mil- lion), Saudi Arabia ($246 million), Luxem- lion), and Canada ($365 million). The aver- bourg ($207 million), France ($176 million), age initial offering yield on public offerings Belgium ($148 million), and Austria ($29 was 4.04%. Almost all public offerings had million). original maturities in the over 10 to 15-year range. Maturities of private placements were International Bonds mostly from three to seven years. Borrowers from six developing countries During 1978, international bonds totaled raised $624 million in 1978, 16% above the $15,872 million and consisted of public offer- $540 million obtained in 1977. The largest ings of $11,561 million and private placements amounts were raised by borrowers from Mex- of $4,311 million. ico ($210 million), Brazil ($131 million), and As in previous years, industrialized coun- Algeria ($120 million). The average initial tries were the main borrowers, raising $9,807 offering yield for public offerings was 4.68%. million, or 62% of total issues. The largest Two-thirds of public offerings ($157 million) amounts were raised by borrowers from Japan had original maturities of over seven to 10 ($1,500 million), the United States ($1,323 years, while maturities of private placements million), and Norway ($1,121 million). Fifty- were concentrated in the over three to five- six percent ($838 million) of the amount raised year range. by Japanese borrowers was convertible into International organizations more than dou- common stocks of the borrower. In 1977, bor- bled their borrowings in Switzerland during rowers from Canada ($1,945 million), the 1978, obtaining $1,807 million, compared with United Kingdom ($1,584 million), Norway $807 million in 1977. This increase was due ($1,391 million), the United States ($1,298 to World Bank borrowings, which rose from million), and Japan ($1,195 million) raised $644 million in 1977 to S1.366 million in 1978. the largest amount of funds. Twenty percent ($3,181 million) of all in- The Japanese Market. Foreign bonds Issued ternational bonds was raised by borrowers in the Japanese bond market totaled $4,686 from developing countries. Twenty-five devel- million in 1978. Some $287 million was raised oping countries tapped the market, the largest in 1976 and $1,394 million was raised in 1977 amounts being raised by borrowers from Industrialized countries raised $2,047 mil- Algeria ($558 million), Brazil (S541 million), lion, or 44% of all foreign bonds in Japan. Venezuela ($382 million), and Mexico ($346 The largest amounts were raised by borrowers million). During 1977, the most active bor- from Australia ($469 million), Norway ($384 rowers were from Mexico ($757 million), million), and Finland ($282 million). Matur- Brazil ($604 million), Algeria ($215 million), ties ranged from five to 12 years, and the aver- and Spain ($190 million). Borrowers from age initial offering yield on public offerings eight countries raised funds for the first time was 6.37%. in the international market during 1978: Fifteen developing countries borrowed Kuwait (S62 million), Ecuador (S62 million), S1,328 million in the Japanese market during Indonesia ($54 million), Chile ($50 million), 1978. Borrowers from Venezuela ($307 mil- El Salvador ($25 million). Thailand ($25 lion), Brazil ($264 million), and the Phil- million), the Republic of China ($20 million), ippines ($141 million) raised the largest and Costa Rica ($20 million). amounts. Issue size ranged from ',X10,000 mil- International organizations raised $2,678 lion to Y40,000 million, with original maturi- million in the international market during ties of eight to 12 years. The average initial 1978, or 11% above the $2,412 million bor- offering yield on public offerings was 6.65%. rowed in 1977. The European Investment International organizations raised $1,267 Bank borrowed the largest amount, $1,013 million in the Japanese market, 95% of which million, through 14 issues denominated in was borrowed by the World Bank ($1,201 US dollars, Deutsche mark, Pounds sterling, million). In July 1978, the World Bank raised Netherlands guilders, and French francs. The Y75.000 million ($366 million) for 15 years World Bank raised $700 million through two at 6.50%. This was reportedly the largest special" placements. public offering ever made by a foreign bor- The US dollar continued to be the most rower in Japan. widely used currency in the international mar- Other National Markets. During 1978, for- ket, accounting for $7,652 million, or 48% eign bonds were also issued in the follow- of all international bonds. However, the dollar International Bonds 123 Borrowing in Intemational Markets (US$ millions. Calendar years.) 1977 1978 1979(s)(P) Foreign Foreign Foreign and inter- Euro- and inter- Euro- and inter- Euro- national currency national currency national currency bonds credits Total bonds credits Total bonds credits Total Industrialized countries 22,825.9 11,055.1 33,881.0 22,653.5 30,351.5 53,005.0 13,686.6 6,530.2 20,216.8 Developing countries(2) 4,722.7 20,270.2 24,992.9 5,468.0 37,942.3 43,410.3 2,271.4 15,818.4 18,089.8 Oil-exporting (52.1) (1,559.6) (1,611.7) (61.6) (1,322.1) (1,383.7) (29.0) (296.6) (325.6) High- and upper- middle income (2,777.4) (9,803.0) (12,580.4) (3,086.2) (16,115.9) (19,202.1) (1,494.5) (7,276.4) (8,770.9) Intermediate- and lower-rmiddle income (1,893.2) (8,352.0) (10,245.2) (2,191.0) (18,698.4) (20,889.4) (710.6) (7,699.2) (8,409.8) Low-income (-) (555.6) (555.6) (129.2) (1,805.9) (1,935.1) (37.3) (546.2) (583.5) Centrally planned countries 255.5 2,566.0 2,821.5 30.0 3,018.4 3,048.4 - 5,057.5 5,057.5 International organizations 7,160.0 197.0 7,357.0 8,146.1 181.7 8,327.8 2,588.2 160.0 2,748.2 Others 1,130.2 97.0 1,227.2 370.8 165.0 535.8 261.0 30.0 291.0 Total 36,094.3 34,185.3 70,279.6 36,668.4 71,658.9 108,327.3 18,807.2 27,596.1 46,403.3 (1) First six months only. (2) Developing countries have been classified by income groups based on 1976 GNP per capita in 1976 US dollars. The category, oil-exporting, includes the following capital surplus countries: Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates. (t) Preliminary. share of the market was much smaller than in 10-year issue by Cr6dit National of France and previous years. US dollar-denominated bonds a 15-year issue by the US bank subsidiary, totaled $9,999 million in 1976 and $12,336 Chase Manhattan Overseas Banking Corp. The million in 1977, for a market share of 65% longest maturity was 20 years, obtained by the and 63%, respectively. Exchange rate uncer- Caisse Centrale de Cooperation Economique tainties and rising US dollar interest rates in on a $50 million issue. 1978 contributed to the diversification of cur- Seventy-four percent ($863 million) of the rencies in the market. The average initial offer- US dollar-denominated bonds issued by bor- ing yield of dollar-denominated public offerings rowers from developing countries were floating by industrialized countries was 8.23%o for the rate notes. As with borrowers from industrial- first quarter and 8.45% for the second quarter. ized countries, most developing country bor- During the second half of 1978, there were rowers were deposit money banks. Borrowers only five fixed rate dollar-denominated public from four developing countries that raised offerings by industrialized countries. The only funds for the first time in the international fixed rate dollar-denominated public offering market in 1978 issued floating rate notes: by a developing country during 1978 was a Kuwait ($25 million), the Republic of China $30 million issue by Panama that had an orig- ($20 million), Costa Rica ($20 million), and inal maturity of five years and an initial offer- El Salvador ($25 million). Original maturities ing yield of 9.28%. on floating rate notes were primarily for five As the year progressed, borrowers turned to seven years. Spreads varied, ranging from increasingly toward floating rate notes to 0.25% to 1.25% over the six-month LIBOR. secure their dollar funds. Floating rate notes The second most widely used currency in issued by borrowers from industrialized coun- the international market during 1978 con- tries totaled $1,670 million, or over one-third tinued to be the Deutsche mark. DM-denom- of all dollar-denominated bonds issued by this inated bonds totaled $6,539 million. The category of borrower. Most of the borrowers market share of DM bonds has increased from were deposit money banks. The majority of 18% ($2,821 million) in 1976 to 41% in issues were public offerings at a spread of 1978. Part of this dramatic increase is the re- 0.25% over the six-month London Interbank sult of appreciation of the Deutsche mark Offered Rate (LIBOR), with an original matu- vis-a-vis the US dollar. Borrowers were also rity in the five to seven-year range. The low- attracted to the DM sector of the international est recorded spreads were 0.125% for a market due to the low prevailing interest rates 124 Borrowvings and Finance and the high liquidity of the market. Unlike ever, 28% of those issues by developing coun- the dollar sector of the international market, tries fell in the over five to seven-year maturity all DM-denominated issues had fixed interest range, compared with 16% for industrialized rates. Among industrialized countries, borrow- countries. ers from Japan ($1,095 million), Norway ($541 million), and Austria ($406 million) Syndicated Eurocurrency Credits- raised the largest amounts. As in the Swiss Calendar 1978 market, a large number of the issues by Japa- Borrowing in the form of publicized Euro- nese borrowers were convertible into common currency credits totaled $71.659 million in stocks of the borrower. The average initial 1978, more than double thc $34,185 million offering yield for public offerings by industrial- total for 1977. Of this total, developing coun- ized countries was 5.44%, 5.31%, 5.87%, and tries accounted for 53% ($37,942 million), 6.06% for the first through fourth quarters, industrialized countries accounted for 42% respectively. ($30,352 million), and centrally planned coun- Eleven developing countries raised $1,410 tries and organizations accounted for 4% million, or 22% of all Deutsche mark-denom- ($3,018 million). International organizations inated bonds. Borrowers from Brazil ($470 and borrowers unallocated by country ac- million), Venezuela ($204 million), Mexico counted for less than 1%, having raised $182 ($172 million), and Argentina ($154 million) million and $165 million, respectively. This were the most active. The average initial offer- substantial increase in the volume of lending ing yield for public offerings by developing was, in large part, due to thc low domestic countries was 6.51% in 1978. corporate demand in most industrialized coun- International bonds denominated in Kuwaiti tries. which caused most banks to turn to the dinars (KD) totaled $481 million. Eighty-two Eurocurrency market to lend excess funds. percent of the KD issues went to borrowers Developing countries borrowed $37,942 from developing countries. Borrowers from million in publicized Eurocurrency credits, an Algeria ($109 million), Mexico ($71 million), increase of $17,672 million, or 87%, over and Morocco (S62 million) raised the most 1977. Thirteen countries raised more than funds. The average initial offering yield on $1,000 million during 1978. They were: Mex- public offerings by developing countries was ico ($6,332 million), Brazil ($4,903 million), 8.21 % . Spain ($2,190 million), Venezuela ($1,990 Currencies used in the international market million), Algeria ($1,926 million), Philippines for the first time in several years included the ($1,837 million), Nigeria ($1,750 million), French franc and the special drawing right. Republic of Korea ($1,687 million), Indonesia International bonds were also denominated in (S1,577 million), Argentina ($1,273 million), the following currencies: Netherlands guilder Iran ($1,178 million), Chile ($1,145 million), (S350 million), Pound sterling ($287 million), and Malaysia ($1,077 million). European unit of account ($203 million), Three countries were reporteC to have raised Saudi Arabian rival ($95 million), Japanese amounts in the Eurocurrency credit market for yen ($79 million), Australian dollar ($31 mil- the first time. They were: Botswana ($45 mil- lion), and the Bahrain dinar (S21 million). lion), Antigua ($10 million), and Barbados Over one-fifth of all international bonds ($10 million). (S3,560 million) was issued by central govern- Among the developing countries, public ments. Large sums were also borrowed by nonfinancial enterprises borrowed $12,766 private nonfinancial enterprises ($2,950 mil- million (34% ). Large amounts were also lion), international organizations ($2,678 raised by central governments, $9,086 mil- million), and deposit money banks ($2,360 lion (24%); private nonfinancial enterprises, million). $5,796 million (1 5% ); and other public finan- Borrowers whose main purpose was banking cial institutions, $5,630 million (I 5 % ). and finance raised $4,521 million, or 28% of Borrowers in developing countries, whose all international bonds. They were followed by main purpose was classified as banking and borrowers whose purpose was classified as finance, raised the largest amount of funds "general" (S3,948 million), international or- during 1978, $9,830 million (26%). Borrow- ganizations ($2,678 million), and industry ers whose purpose was "general" borrowed ($2,603 million). $8,778 million (23%). Large amounts were Over half of all international bonds had an also raised by borrowers whose purpose was original maturity in the over seven to 15-year public utilities, $5,509 million (15%); indus- range. This was true for borrowers from both try, $5,146 million (14% ); and petroleum and industrialized and developing countries. How- natural gas, $4,335 million (11%). Bond Markets-1979 125 Industrialized countries borrowed $30,352 was entirely in the international market, where million in the Eurocurrency credit market, borrowing increased by 49%, from $6,788 more than double the amount raised in 1977 million to $10,142 million. Foreign bonds ($11,055 million). Countries borrowing large issued in national capital markets declined amounts were: Canada ($9,581 million), from $10,514 million in the second half of United Kingdom ($4,722 million), Denmark 1978 to $8,666 million in the first six months ($2,335 million), United States ($2,215 mil- of 1979. lion), Sweden ($1,861 million), and Norway Foreign Bonds. Foreign bonds issued in the Central governments borrowed $11,795 mil- US market during the first half of 1979 totaled lion (39%) of the total for industrialized $2,348 million, or 37% below the $3,705 mil- liountries. ofatge montal fore iusotriailed lion raised during the first six months of 1978. countries. Large amounts were also raised by Borrowers from Canada wcrc the most active, public nonfinancial enterprises, S7,661 million r s miCan. wedish mowe, (25%); and private nonfinancial enterprises, raising $1,055 milloon. Swedish borrowers $7,603 million (25%). raised $300 million. The European Investment Borrowers in industrialized countries whose Bank secured $550 million through public main purpose was classified as "general" offerings in February and May. raised the largest amount, $12,987 million Over half of all foreign bonds, $4,679 mil- (43%). Borrowers for industries raised $6,142 lion, were raised in the Swiss capital market. million (B0%). Large amounts were also raised Borrowers from industrialized countries raised by borrowers whose purpose was public util- $3,970 million, or 85% of all foreign bonds ities, $4,547 million (15r); petroleum and issued in Switzerland. The largest amounts naties, gas,5$3,352 million ( petroleum and bank- were secured by borrowers from Japan ($1,181 natural gas, $3,352 million (II%); and bank- million), Canada ($481 million), Austria Centrally planned countries and organiza- ($334 million), and Australia ($298 million). tions borrowed $3,018 million during 1978 Five developing countries borrowed $407 mil- tions borrowed 18% 018 higher n the n 1978a ml lion in the Swiss market during the first half an amount 18% higher than the $2,566 mil- of 1979, over half of which was raised by lion borrowed in 1977. The largest amount was 1979, overs of millio se. raised by the Democratic Republic of Ger- Spansh borrowers ($2n9 million). may($782 million). Smaller amounts were Borrowing In the Japanese capital market many by Hungary Smallern),ounterna- totaled $1,111 million, less than half the tional Investment Bank ($500 million), USSR amount raised during the first half of 1978 ($400 million), Poland ($374 million), Bul- ($2,378 million). The largest amounts were garia ($239 million). Czechoslovakia ($150 raised by borrowers from Brazil ($150 mil- million), and Cuba ($58 million), lion), Canada ($146 million), and Norway Competition among highly liquid banks to ($138 million). secure Eurocurrency business resulted in an Foreign bonds were also issued in the fol- easing of lending terms. Maturities lengthened lowing national markets: the Federal Republic and interest rate spreads over LIBOR de- of Germany ($146 million), Luxembourg creased. Approximately 62% of the loans ($121 million), the Netherlands ($87 million), negotiated during 1978 carried maturities over France ($76 million), Belgium (a51 million), seven years. During 1977. 12% of the loans Saudil Araba ($30 million), and Sweden ($17 carried maturities over seven years, and during mllion). 1976, 4%. During 1978, 68% of the loans International Bonds. Over 70% of all inter- carried interest rate spreads of 1% or below, national bonds ($7,336 million) were issued compared with the 35% in 1977, and 2% by borrowers from industrialized countries. in 1976. Borrowers from the United States ($1,830 mil- The interest rate for six-month Eurodollar lion), Canada ($939 million), Japan ($816 deposits fluctuated between a low of 7.62% in million), and France ($741 million) were the January and a high of 12.31 % in December. most active. Developing countries raised $1,304 million Bond Markets-1979 in the international market during the first half Borrowing in foreign and international bond of 1979, or 29% below the $1,828 million markets during the first half of 1979 totaled borrowed during the equivalent period in 1978. $18,807 million, slightly below the $19,366 Thirteen developing countries obtained funds; million ra'sed during the first half of 1978, the largest amounts were secured by borrowers but substantially above the $17,302 million from Argentina ($212 million), Israel ($185 raised during the second half of 1978. The in- million), Venezuela ($154 million), and Bra- crease over the July-December 1978 period zil ($140 million). 126 Borrowings and Finance International organizations borrowed $1,299 totaled $27,596 million, or 19% below the million in the January-June 1979 period. The $34,024 million borrowed during the first half largest amount ($520 million) was obtained of 1978. Much of the decrease was because by the European Investment Bank. The World the industrialized countries borrowed less. Bank raised $300 million through a "special" They borrowed only $6,530 million during the placement with central banks, monetary au- first half of 1979, or 54% less than the $14,098 thorities, and central governments. million borrowed during the first half of 1978. Sixty-one percent ($6,182 million) of all Developing countries showed an 11% decrease international bonds were denominated in US in borrowing, from $17,736 million in the first dollars. This contrasts sharply with the last half of 1978 to $15,818 million in the first half of 1978, when US dollar-denominated half of 1979. bonds amounted to $3,008 million, or only Those developing countries that were the 44% of all international bonds. Borrowers most active borrowers in the Eurocurrency from the United States accounted for 28% credit market during 1978 continued to be the ($1,750 million) of dollar-denominated bonds. most active during the first half of 1979. Thev About one-third of all dollar-denominated were: Mexico ($2,741 million), Brazil ($2,379 bonds ($2,012 million) were floating rate million), Venezuela ($1,052 million), Spain notes. All dollar-denominated issues by devel- ($954 million), and Algeria ($952 million). oping countries were floating rate notes. One country that raised a Eurocurrency As in previous periods, the Deutsche mark loan for the first time was Sri Lanka, for $50 continued to be the second most widely used million. currency. DM-denominated bonds totaled Among the industrialized countries, two S2,555 million, or one-fourth of all interna- cont bre large aounts: Fac tional bonds. However, about two-thirds of countr(es borroned)lantaly ($1,447 million). DM-denominated bonds were issued during ' '. the first quarter of 1979, as activity in this The centrally planned countries and organ- sector of the international market slowed con- izations borrowed $5,058 millon during the siderablv during the second quarter. Japanese first half of 1979, or almost twice the amount borrowers continued to be the most active they borrowed during 1978. This increase is issuers of DM-denominated bonds, securing accounted for by the debut of the People's $621 million during the first half of 1979. Republic of China in the Eurocurrency credit Other currencies used in the international market. During the first six months of 1979, market during the first six months of 1979 the People's Republic of China raised $3,325 were: the Canadian dollar ($384 million), the million, or 66% of the total amount borrowed Pound sterling ($256 million), the French by this group of countries. franc ($239 million), the Kuwaiti dinar ($203 Other borrowing during the first half of million), the European unit of account ($143 1979 included $160 million for international million), the special drawing right ($65 mil- organizations and $30 million for other bor- lion), the Netherlands guilder ($50 million), rowers unallocated by country. the Japanese yen ($49 million), and the Aus- The long maturities and the low interest tralian dollar ($17 million). rate spreads evidenced during 1978 continued to be characteristic of loan terms in the first Svndicated Eurocurrency Credits-1979 half of 1979. The interest rate for six-month Eurodollar During the first half of 1979, borrowing in deposits during the first half of 1979 fiuctu- the form of publicized Eurocurrency credits ated between 10.50% and 11.06%. 127 Statistical Annex Page General Notes to Annex Tables ............. . ........................................... ... 128 Table 1 Selected Economic Indicators for Developing and Industrialized Countries-Regional Summary .130 2 World Exports, by Origin and Destination, 1967-78 . . ...................... .......... 132 3 96 Developing Countries-External Public Debt Outstanding (including Undisbursed), by Region, 1971-77 . ........................ ....... 134 4 96 Developing Countries-External Public Debt Outstanding, by Country and Type of Creditor, December 31, 1977 ......................................... 135 5 Service Payments on External Public Debt as Percentage of Exports of Goods and Services, 1971-77 ............................................... .... 137 6 Projected Debt Service on External Public Debt Outstanding, by Region and Type of Creditor, as of December 31, 1977 ....... .......................... .. 139 7 External Resource Flows and Service Payments on External Public Debt, by Region, 1971-77 ............................... ................. 141 8 Average Terms of Loan Commitments and Grant Element of Loans and Grants, by Region, 1971-77 ............................................. ........ 142 9 Foreign and International Bond Issues, by Market and Country of Borrower Entity, 1976-78 and First Half 1979 ................................. ... 143 10 Initial Offering Yields of Publicly Offered Foreign and International Bonds, 1976 to Second Quarter 1979 ................................... ....... 146 11 Publicized Eurocurrency Credits, by Country of Borrower Entity, 1976-78 and First Half 1979 ................................................ 147 128 Statistical Annex General Notes to Annex Tables The tables of this Annex present data on selected Latin America and the Caribbean-Argentina, Bar- economic indicators, world trade, external public debt, bados, Bolivia, Brazil, Chile, Colombia, Costa Rica, and international capital markets. As in past Annual Dominican Republic, Ecuador, El Salvador, Guate- Reports, most of the tables are organized on geographic mala, Guyana, Haiti, Honduras, Jamaica, Mexico, lines. Nicaragua, Panama, Paraguay, Peru, Trinidad and In Table 1, the basic series on selected economic Tobago, Uruguay, Venezuela. indicators is based on data stored in the IBRD Socio- North Africa and Middle fast-Algeria, Bahrain, economic Data Bank, which are mainly obtained from Egypt (Arab Republic of), Iran, Iraq, Jordan, World Bank country economic reports, supplemented Lebanon, Morocco, Oman, Syrian Arab Republic, by data from national and other international publica- Tunisia, Yemen Arab Republic, Yemen (People's tions. The indicators presented in this table are the Democratic Republic of). same as those of last year. Country coverage includes South Asia-Afghanistan, Bangladesh, Burma, India, the 96 countries listed below, plus 12 developing Nepal, Pakistan, Sri Lanka. countries listed in the Note to Table 1. In Table 2, the data on world trade are classified by More advanced Mediterranean countries - Cyprus, origin, destination, and geographic region, principally Greece, Israel, Malta, Portugal, Spain, Turkey, on the basis of data published in the UNI Monthly Yugoslavia. Bulletin of Statistics. Not all of the 96 countries have been reporting for In Tables 3 through 8. the principal source of data on the full historical period, 1971-77, covered by the external debt is information received by the World Bank tables. Where individual country reports are lacking from its member countries. These data are checked for certain years, estimates have been made by the with and supplemented by information from several World Bank's staff in order to present a consistent other sources, primarily reporting by creditor countries series of data. on their lending. The notes on the debt of the Philip- For the purpose of these tables, external public debt pines and Yugoslavia in Table 3 apply to all Tables 3 is defined as debt repayable to external creditors in through 8. foreign currency, goods, or services, with an original The 96 countries included in the tables are those or extended maturity of more than one year, which is whose reporting on external public debt is sufficient for a direct obligation of, or has repayment guaranteed by, a reliable presentation of debt outstanding and future a public body in the borrowing country. Most military service payments. The classification of countries by debts are not reported, although a few countries have geographical region"' is as follows: included such obligations in their data. The World Bank continues to work in cooperation Africa South of the Sahara-Benin, Botswana, with its member countries toward the improvement of Burundi, Cameroon, Central African Empire, Chad, debt statistics. This effort results in many cases in a Comoros, Congo (People's Republic of the), Ethi- broadening of the coverage of the data for both current opia, Gabon, Gambia (The), Ghana, Guinea, Ivory and past periods. Therefore, a comparison with debt Coast, Kenya, Lesotho, Liberia, Madagascar, Ma- tables in the 1978 Annual Report will show changes in lawi, Mali, Mauritania, Mauritius, Niger, Nigeria, data given for past years. The current Annual Report Rwanda, Senegal, Sierra Leone, Somalia, Sudan, should be regarded as the more reliable. Swaziland, Tanzania, Togo, Uganda, Upper Volta, In Table 7,- net flow is defined as disbursements on Zaire, Zambia (and the East African Community). loans, grants, and grantlike loans minus amortization on loans. Net transfer is net flow minus interest on East Asia and Pacific-China (Republic of), Fiji, loans. In Table 8, grant element is defined as the face Indonesia, Korea (Republic of), Malaysia, Papua value of loan commitments less the discounted present New Guinea, Philippines, Singapore, Thailand. value of the future flow of repayments of principal and (1) Note that in these tables Afghanistan is classified under South Asia, whiIe in the discussion of the year's activities by region, it is classified under Europe, Middle East, and North Africa. Statistical Annex 129 interest expressed as a percentage of face value. The have been large to some developing countries. How- discount rate used is 10%, the conventional rate used ever, debt data include obligations to creditors of all by OECD in assessing terms. nationalities. In Table 5. debt service ratios represent service pay- Tables 9 and 10 deal with foreign and interna- ments (amortization plus interest) on external public tional bond issues. In Table 9, "Foreign bonds" are debt as a percentage of the exports of goods and all those issued in a single national market. "Interna- services. The debt service figures used in the present tional bonds" are those which are sold in two or more table are those for actual debt service paid (as com- markets simultaneously. piled from country reports) during the year. If a In Table 9. "Other national markets" include the country did not pay the entire amount of contractual following countries: Austria, Belgium, France, Ger- debt service during a year, this may be reflected in a many (Federal Republic of), Italy, Japan, Libya, Lux- somewhat lower debt service ratio than would have embourg, Netherlands, Saudi Arabia, Switzerland, been the case if contractual debt service instead of Trinidad and Tobago, United Arab Emirates, and actual service paid had been used in computing the Yugoslavia. In Table 10, "Other national markets" ratio. Likewise, the prepayment of debt service may include Austria, Belgium, France, Germany (Federal result in a higher debt service ratio. Republic of), Japan, Luxembourg, Netherlands, Switz- The debt service ratio is, by itself, an inadequate erland, and Trinidad and Tobago. and incomplete indicator of a country's debt situation, In Table 11. "Eurocurrency credits" are credits and international comparisons of these ratios have only granted by banks out of Eurocurrency funds on deposit limited meaning. Many other factors must also be con- with them or borrowed by them in the Eurocurrency sidered, such as the stability and diversification of the market. The term "Euro" is used to refer to "offshore" country's export structure, the prospects for future markets outside, as well as inside, Europe. The term growth, the extent to which imports can be reduced "credit" is used to refer to loans, lines of credit, and without adversely affecting the size of foreign exchange other forms of medium- and long-term credit. reserves and available compensatory financing facili- Data on debt outstanding and service payments are ties, and the debt service record of the country. current market rates, or, if valid, par values or central Further, external public debt constitutes only a part of exchange rates of the International Monetary Fund the total indebtedness of a number of countries and, (IMF). Capital flows and service payments are con- thus, considerably understatesthe burden of indebted- verted to US dollars at an average rate for the year. ness in some cases. The debt service ratio is only an Debt outstanding is converted at the rate in effect as indication of the importance of debt and debt service of the date of the outstanding. Projected debt service in a country's total foreign exchange situation. is converted to US dollars at end-1977 rates. How- In Tables 7 and 8, the source of data for grants is ever, debts repayable in multiple currencies, goods, OECD. For grantlike loans, the data sources are OECD or services, and debt which has a provision for main- and the Inter-American Development Bank (IDB). tenance of value of the currency of repayment, are Grants consist of grant and grantlike (loans repayable shown at their book values. in local currency)contributions;theyare on a disburse- Information about foreign and international bonds ment basis in both tables. The grants included in these and Eurocurrencycredits, denominated in national cur- tables comprise: (1) contributions by countries which rencies, is converted to US dollars using monthly are members of DAC; (2) grants by multilateral agen- average market exchange rates of currency units per cies as compiled by OECD; (3) disbursements by IDB US dollar, series "af," from the IMF's International on loans repayable in local currencies. Grants for tech- Financial Statistics (IFSJ File. For loans denominated nical assistance have been excluded. Data for grants in composite currencies (e.g., European unit of ac- do not include grants from bilateral donors other than count), the conversion is made using rates derived DAC countries, although grants from other sources may by the World Bank. 130 Statistical Annex Selected Economic Indicators for Developing and Industrialized Countries-Regional Summary Average annual real growth and shares in Gross National Product (GNP), 1961-65, 1966-74, 1975, 1976, 1977, and 1978 (percentages) Region Indicators 1961-65 1966-74 1975 1976 1977 1978(P) Developing countries Real rate of growth: Total GNP ................................................. 5.5 6.2 4.9 5.7 5.5 5.2 Agricultural production ............................................. 2.9 2.9 5.0 2.3 3.0 3.2 Manufacturing production ........................................... 8.5 9.0 2.8 8.9 6.9 - Population ................................................. 2.4 2.4 2.4 2.3 2.4 2.4 GNP per capita ....................................... .......... 3.0 3.8 2.5 3.3 3.1 2.8 Gross investment ................................................. 7.7 9.0 4.2 6.4 8.0 - Share in GNP: Gross investment .................................................. 20.0 21.3 24.5 24.3 24.8 - Gross national saving ................ ................. ............ 18.1 20.3 23.4 23.8 23.2 - Africa South of the Sahara Real rate of growth: Total GNP ................................................. 3.9 5.2 1.0 6.2 4.4 2.9 Agricultural production ............................................. 2.9 1.8 1.1 2.5 0.5 1.7 Manufacturing production ..... ..................................... 9.5 7.7 1.0 9.1 2.7 - Population ................................................. 2.5 2.6 2.7 2.8 2.7 2.7 GNP per capita ................................................. 1.4 2.5 -1.7 3.3 1.7 0.2 Gross investment ................................................. 8.1 8.9 6.5 18.9 15.3 - Share in GNP: Gross investment .................................................. 15.7 18.2 22.9 22.4 24.7 - Gross national saving ............................................... 11.4 14.5 16.6 18.6 19.6 - East Asia and Pacific Real rate of growth: Total GNP .... ............................................. 5.5 7.8 5.5 10.0 8.2 8.9 Agricultural production ............................................. 5.2 3.8 4.7 3.9 2.4 2.8 Manufacturing production ....... ................................... 8.8 14.7 7.4 18.3 10.4 15.0 Population ................................................. 2.6 2.3 2.2 2.2 2.2 2.2 GNP per capita ................................................. 2.8 5.3 3.2 7.7 5.9 6.6 Gross investment .................................................. 12.1 13.4 0.8 7.9 9.3 18.0 Share in GNP: Gross investment ................................................. 15.7 21.3 26.1 25.1 24.6 26.2 Gross national saving ............................................... 11.7 16.9 20.5 23.4 23.4 22.6 Latin America and the Caribbean Real rate of growth: Total GNP ................................................. 5.3 6.8 3.2 4.7 4.4 4.7 Agricultural production ............................................. 3.7 3.0 2.6 1.8 4.6 2.7 Manufacturing production ........................... ............... 5.8 8.2 1.7 4.8 4.7 - Population ................................... .............. 2.8 2.7 2.7 2.7 2.7 2.7 GNP per capita ................................................. 2.4 4.0 0.5 1.9 1.6 1.9 Gross investment ................................................. 4.2 9.4 1.6 1.9 9.4 2.1 Share in GNP: Gross investment .................................................. 20.3 21.2 24.7 23.4 23.1 - Gross national saving .................... ........ ............... 19.5 19.7 20.7 20.9 20.2 - North Africa and Middle East Real rate of growth: Total GNP ................................................. 7.1 5.9 14.2 10.1 9.2 7.0 Agricultural production ............................................. 1.8 1.8 -0.8 8.1 -6.6 10.3 Manufacturing production ........................................... 8.5 7.9 7.6 9.6 8.0 - Population . ................................................ 2.6 2.8 3.0 3.0 3.0 3.0 GNP per capita ................................................. 4.3 3.1 10.8 6.9 6.0 3.9 Gross investment ................................................. 1.3 13.2 32.1 22.6 14.2 - Share in GNP: Gross investment ................................................. 20.9 21.9 25.7 28.9 33.5 - Gross national saving .............................................. 25.3 33.2 50.4 48.0 44.3 - Statistical Annex 131 Table 1 Region Indicators 1961-65 1966-74 1975 1976 1977 1978(P) South Asia Real rate of growth: Total GNP ................................................. 3.7 3.3 8.4 2.5 5.8 5.4 Agricultural production ................................ ............ 0.8 2.4 9.9 -1.7 7.6 2.4 Manufacturing production ........................................... 9.2 3.7 3.4 7.9 3.2 6.8 Population ........................... ...................... 2.4 2.3 2.2 2.2 2.2 2.2 GNP per capita ................................................. 1.3 1.0 6.0 0.3 3.6 3.2 Gross investment ................................................. 8.3 3.5 9.7 7.6 0.4 9.8 Share in GNP: Gross investment ................................................. 17.2 16.7 18.6 19.8 19.8 20.7 Gross national saving ..................................... ......... 14.0 14.3 15.1 17.8 17.5 18.1 More advanced Mediterranean countries Real rate of growth: Total GNP ................................................. 7.5 6.8 2.2 3.7 3.7 3.3 Agricultural production ............................................. 3.0 3.8 4.5 3.6 -1.3 3.2 Manufacturing production ........................................... 11.6 9.8 -1.7 7.3 9.3 - Population ................................................. 1.4 1.5 1.5 1.5 1.5 1.5 GNP per capita ................................................. 6.0 5.3 0.6 2.2 2.2 1.8 Gross investment ................................................. 12.6 7.0 -2.7 0.5 1.5 - Share in GNP: Gross investment ................................................. 25.2 24.8 26.0 25.3 25.1 - Gross national saving ............................................... 21.9 22.1 20.0 20.0 19.9 - Industrialized countries Real rate of growth: Total GNP ................................ ................. 5.6 4.9 -0.7 5.2 3.7 3.6 Agricultural production ............................................. 2.0 2.1 4.0 0.5 1.0 2.8 Manufacturing production ........................................... 6.3 6.0 -9.2 10.0 3.7 4.0 Population ................................................. 1.2 1.0 0.8 0.8 0.6 0.7 GNP per capita ................................................. 4.3 3.8 -1.5 4.4 3.1 2.9 Gross investment ............................................... 7.6 6.0 -14.4 11.1 4.8 - Share in GNP: Gross investment ................................................. 21.9 22.1 20.9 21.8 22.1 - Gross national saving ...................................... ........ 23.2 27.6 21.4 21.7 21.8 - Note: All the countries listed below have been included for the estimates of the real rates of growth of GNP and population. For other indicators, some countries have been omitted due to lack of data. I ndastrialized countries-Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germa7n (Federal Republic of), Iceland, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, South Africa, Sweden, Switzerland, United Kingdom, United States. Developing couatries-Those listed in the "General Notes to Annex Tables" and those below: East Asia and Pacific-Democratic Kampuchea, Lao People's Democratic Republic, Western Samoa, Solomon Islands, Viet Nam. Latin America and the Caribbean-Bahamas, Grenada. North Africa and Middle East- Kuwait, Libya, Qatar, Saudi Arabia, United Arab Emirates. (P) Preliminary. Source: World Bank. World Exports, by Origin and Destination, 1967-78 Table 2 > Developed Centrally planned Exports to World market economies Developing market economies economies Latin America and the Middle Other Total Total Total Caribbean Africa East Asia Total Annual Annual Annual Annual Exports from US$ millions Percentage growth rate Percentage growth rate Percentage growth rate Percentage Percentage Percentage Percentage Percentage growth rate World(l) (2) (3) 1967-72 annual average 300,735 100.0 14.1 70.5 15.0 18.7 12.4 5.9 3.7 2.5 6.2 10.4 11.7 1973 .576,960 100.0 38.8 71.0 37.1 18.3 40.8 5.4 3.5 2.6 6.2 9.9 34.8 1974 .835,580 100.0 44.8 70.1 43.0 20.6 63.1 6.6 3,8 3.4 6.4 8.6 26.7 1975 .874,169 100.0 4.6 65.6 -2.2 23.0 16.8 6.7 4.7 4.9 6.3 10.6 28.0 1976 .990,646 100.0 13.3 67.3 16.4 22.1 9.0 6.2 4.3 5.1 6.1 9.7 4.1 1977 .1,125,498 100.0 13.6 66.7 12.6 23.0 18.1 6.1 4.7 5.4 6.3 10.8 10.3 1978(P) .1,310,996 100.0 16.5 66.8 16.6 23.1 16.9 5.8 4.4 5.5 6.9 9.7 18.8 1973-78 annual average 952,310 100.0 15.8 67.7 14.4 22.0 20.8 6.1 4.3 4.7 6.4 9.7 16.0 Developed market economies(') (4) (5) 1967-72 annual average 214,371 100.0 14.8 76.4 15.5 18.9 12.4 6.1 4.1 2.4 6.0 4.1 13.8 1973 .407,820 100.0 36.6 76.4 35.2 18.1 37.9 5.5 4.0 2.7 5.7 4.8 52.9 1974 .543,640 100.0 33.3 73.3 27.8 20.9 54.3 6.5 4.5 3.7 6.0 5.2 43.5 1975 .578,786 100.0 6.5 69.5 0.9 23.9 21.6 6.5 5.6 5.7 5.9 6.1 25.0 1976 .643,800 100.0 11.2 71.1 13.9 22.9 6.4 5.8 5.3 6.0 5.6 5.5 1.6 1977 .729,660 100.0 13.3 70.7 12.7 23.7 17.5 5.7 5.8 6.3 5.8 5.0 1.7 1978(P) .880,565 100.0 20.7 70.7 20.7 23.7 20.7 5.6 5.3 6.2 6.5 5.1 23.6 1973-78 annual average 630,712 100.0 14.8 71.6 13.3 22.6 20.5 5.9 5.2 5.4 6.0 5.3 15.1 Developing market economies(4) (6) (7) 1967-72 annual average 53,928 100.0 13.4 73.9 13.5 20.0 13.8 6.6 2.6 2.5 8.1 5.2 9.7 1973 .111,080 100.0 48.3 73.3 46.1 20.6 48.5 6.9 2.3 2.5 8.8 4.6 49.3 1974 .219,940 100.0 98.0 74.5 101.2 21.2 103.5 8.0 2.2 2.9 7.9 3.6 54.6 1975 .210,839 100.0 -4.1 70.2 -9.7 23.3 5.6 8.5 2.9 3.5 8.3 4.7 25.2 1976 .254,777 100.0 20.8 71.6 23.3 22.4 16.3 8.5 2.4 3.3 8.1 4.2 6.5 1977 .288,316 100.0 13.2 71.1 12.4 23.3 17.3 8.3 2.5 3.8 8.6 4.1 11.1 1978(P) .305,980 100.0 6.1 71.5 6.7 23.7 7.9 7.5 2.5 3.9 9.6 4.1 6.6 1973-78 annual average 231,822 100.0 18.9 71.9 18.1 22.7 22.2 8.0 2.5 3.4 8.6 4.2 17.7 Latin America and the Caribbean 1967-72 annual average 16,288 100.0 9.1 74.5 8.7 19.5 11.0 17.5 0.7 0.3 0.9 5.3 4.6 1973 .29,040 100W0 40.8 70.9 35.7 21.7 47.4 18.1 1.1 0.8 1.7 6.4 93.8 1974 .48,510 100.0 67.0 70,2 65.4 23.3 78.9 20.0 1.6 0.9 0.7 5.6 46.8 1975 .47,735 100.0 -1.6 66.4 -7.0 24.1 1.7 20.1 2.0 1.3 0.6 8.6 50.2 2 . 1976 .53,264 100.0 11.6 68.7 15.5 22.4 3.8 18.8 1.9 0.9 0.8 8.0 4,3 1977 .60,768 100.0 14.1 65.0 8.0 24.8 26.4 19.9 2.5 1.3 1.2 8.5 20.9 1978(P) .63,144 100.0 3.9 66.4 6.1 24.1 1.0 19.3 2.4 1.3 1.2 8.8 7.9 1973-78 annual average 50,410 100.0 14.3 67.6 12.6 23.6 16.4 19.5 2.0 1.1 1.0 7.8 23.7 Africa(7) r: 1967-72 annual average ......... 11,328 100.0 12.3 81.5 11.2 10.4 18.4 2.2 4.9 1.1 2.2 7.2 16.5 . 1973 ......................... 20,650 100.0 42.1 81.5 43.6 11.5 51.6 3.8 5.0 0.9 1.8 6.5 21.8 . 1974 ......................... 38,380 100.0 85.9 84.2 92.0 10.7 71.8 4.7 3.9 0.9 1.3 4.7 34.3 2 1975 ......................... 33,993 100.0 -11.4 78.1 -17.9 14.5 20.5 6.6 5.5 1.3 1.1 6.6 25.4 1976 .......................... 41,399 100.0 21.8 82.1 28.1 12.2 2.7 5.6 4.3 1.5 0.8 4.8 -17.8 > 1977 ......................... 47,783 100.0 15.4 83.6 17.6 11.7 10.0 5.4 4.2 1.3 0.7 3.7 -10.6 x 1978(P) ......................... 52,350 100.0 9.6 83.9 9.9 11.7 8.2 5.4 4.2 1.4 0.8 3.9 14.5 1973-78 annual average ......... 39,093 100.0 17.0 82.5 17.6 12.0 17.6 5.3 4.4 1.3 1.0 4.8 5.7 Middle East 1967-72 annual average ......... 11,780 100.0 19.5 76.4 19.1 19.5 20.7 2.6 2.9 6.9 6.9 2.5 15.7 1973 ......................... 28,980 100.0 52.1 74.4 48.7 20.2 52.3 4.3 1.8 5.7 7.7 2.4 45.3 1974 ......................... 85,270 100.0 194.2 76.0 200.4 21.1 207.2 6.1 1.7 4.5 8.7 1.9 133.3 1975 ....... ...... ...... 82,304 100.0 -3.5 71.7 -8.9 22.5 3.1 6.1 2.1 4.8 9.2 2.4 22.2 1976 ......................... 98,543 100.0 19.7 70.7 18.1 23.4 24.3 8.1 1.7 4.2 9.2 2.4 22.4 1977 ......................... 106,021 100.0 7.6 71.6 9.0 23.3 8.4 7.1 1.4 5.2 9.7 2.4 5.7 1978(P) ......................... 102,693 100.0 -3.1 72.5 -2.0 23.8 -2.3 5.7 1.6 5.6 10.7 2.7 8.5 1973-78 annual average ......... 83,969 100.0 22.7 72.5 21.6 22.8 26.9 6.5 1.7 4.9 9.5 2.4 27.5 Other Asia 1967-72 annual average ......... 14,075 100.0 14.2 64.1 16.1 29.6 11.6 1.2 3.0 2.5 22.5 5.9 6.0 1973 ......................... 31,450 100.0 56.9 68.5 60.7 26.4 45.9 1.3 2.0 2.1 20.6 4.0 38.5 1974 ......................... 46,420 100.0 47.6 67.5 45.5 28.3 58.4 2.2 2.4 3.7 19.6 2.8 4.8 1975 .......................... 45,674 100.0 -1.6 64.8 -5.6 31.0 7.8 2.4 3.1 5.1 20.0 3.6 24.5 1976 .......................... 60,349 100.0 32.1 67.9 38.5 28.4 20.8 2.2 2.6 5.2 17.9 3.2 18.1 1977 ......................... 72,280 100.0 19.8 66.8 17.7 29.7 25.3 2.2 2.9 5.7 18.4 3.2 18.0 1978(P) ......................... 86,308 100.0 19.4 66.3 18.5 30.8 24.0 2.3 2.8 5.6 19.7 2.5 -4.6 1973-78 annual average ......... 57,080 100.0 20.9 66.9 20.4 29.4 23.8 2.2 2.7 4.9 19.2 3.1 14.0 Centrally planned economies(8) (9) 1967-72 annual average ......... 32,588 100.0 11.1 24.3 11.7 15.0 9.4 3.1 3.2 2.6 4.0 60.1 11.1 1973 ......................... 57,890 100.0 34.0 27.8 50.5 15.2 44.4 2.4 2.7 2.4 4.0 56.0 23.9 1974 ......................... 71,990 100.0 24.4 32.5 45.6 16.1 31.7 2.7 3.3 3.0 4.8 50.5 12.2 1975 ......................... 84,546 100.0 17.4 27.3 -1.6 15.8 14.6 3.1 2.9 3.4 4.2 56.3 30.9 1976 ......................... 92,069 100.0 8.9 29.0 15.6 15.7 8.8 3.2 2.7 3.5 3.8 54.7 5.8 1977 ......................... 107,523 100.0 16.8 27.8 12.1 17.2 27.5 3.3 2.9 3.8 3.6 54.4 16.3 1978(P) ......................... 124,452 100.0 15.7 27.2 13.1 16.9 13.9 3.3 2.6 4.2 3.5 55.6 18.2 1973-78 annual average ......... 89,745 100.0 15.7 28.4 14.0 16.3 18.1 3.1 2.4 3.5 3.9 54.7 16.3 (') Including special category exports, ships' stores, bunkers, and other exports whose destinations could not be determined. (2) Excluding the intertrade of the centrally planned economies of Asia and the exports of Rhodesia. (3) Includes the intertrade of Federal Republic of Germany and German Democratic Republic. (4) This classification is intended for statistical convenience and does not necessarily express a judgment about the stage reached by a particular country in the developmeiat process. (6) Includes Israel, excludes Turkey. (6) Includes Turkey, excludes Israel. (7) Excludes exports of Rhodesia. () Exsports of the USSR, for which country of destination could not be determined, are included in the total exports to the world, developed market economies, and centrally planlned economies. (9) Excludes the intertrade of the centrally planned economies of Asia. (P) Preliminary. Source: United Nations. 134 Statistical Annex 96 Developing Countries-External Public Debt Table 3 Outstanding (including Undisbursed), by Region, 1971-77 (US$ millions) Africa Latin More South East Asia America North Africa advanced Debt outstanding of the and and the and Mediterranean Year Sahara Pacificf() Caribbean Middle East South Asia countries(2) Total Total debt outstanding end of year 1971 ............... 9,289.7 11,609.4 23,994.1 13,410.0 17,523.2 12,587.1 88,413.5 1972 ............... 10,584.2 14,308.1 29,058.1 15,671.8 19,011.5 14,592.1 103,225.7 1973 ............ ... 14,630.8 17,398.2 36,080.2 20,077.2 21,391.0 16,592.8 126,170.1 1974 ............... 18,813.9 24,387.9 46,649.6 23,349.0 26,284.4 20,555.4 160,040.2 1975 .. ............. 21,649.0 30,028.3 55,401.4 31,546.0 28,517.7 23,237.3 190,379.7 1976 ............... 25,300.1 38,645.0 71,472.1 39,992.2 31,189.0 28,338.9 234,937.3 1977 ............... 30,252.0 46,377.4 85,748.7 54,703.3 35,622.0 32,483.6 285,186.9 Debt outstanding by type of creditor December 31, 1971 Bilateral official - .... ..... 4,916.8 5,980.4 6,926.7 7,999.2 12,958.8 5,911.5 44,693.4 Multilateral ............ 2,001.5 2,224.3 5,952.3 1,017.8 3,452.6 1,912.5 16,561.1 Private Suppliers ............. 1,251.4 2,010.3 4,725.4 2,978.5 937.4 1,072.0 12,975.0 Financial institutions ... 502.0 977.3 4,444.8 1,339.5 158.1 2,054.8 9,476.5 Other ............... 618.0 417.1 1,945.0 75.0 16.3 1,636.3 4,707.6 Total ............... 9,289.7 11,609.4 23,994.1 13,410.0 17,523.2 12,587.1 88,413.5 December 31, 1972 Bilateral official ........ 5,352.2 7,496.9 8,142.3 9,226.5 13,823.4 6,935.7 50,977.1 Multilateral ............ 2,483.5 2,793.1 7,200.8 1,256.9 4,045.5 2,143.2 19,923.1 Private Suppliers ............. 1,344.7 2,158.5 4,869.1 3,256.2 996.9 1,167.8 13,793.2 Financial institutions .. 871.7 1,382.0 6,677.7 1,814.1 131.5 2,489.3 13,366.3 Other ............... 532.1 477.5 2,168.2 118.1 14.1 1,856.0 5,166.0 Total ............... 10,584.2 14,308.1 29,058.1 15,671.8 19,011.5 14,592.1 103,225.7 December 31, 1973 Bilateral official ........ 6,809.3 8,763.3 9,594.2 10,902.6 15,316.1 7,612.8 58,998.3 Multilateral ............ 3,365.4 3,525.9 8,375.3 1,799.1 4,877.1 2,556.2 24,499.0 Private Suppliers ............. 1,857.8 2,116.6 5,220.5 3,333.3 1,050.5 1,231.4 14,810.1 Financial institutions .. 1,887.8 2,444.5 10,679.0 3,856.5 133.4 2,881.7 21,882.9 Other .............. 710.6 547.8 2,211.1 185.7 13.9 2,310.8 5,979.9 Total ............... 14,630.8 17,398.2 36,080.2 20,077.2 21,391.0 16,592.8 126,170.1 December 31, 1974 Bilateral official .. ...... 8,725.0 10,488.1 11,803.4 12,796.4 18,636.4 8,730.4 71,179.7 Multilateral ............ 4,182.4 4,717.0 9,735.7 2,698.9 6,314.9 3,252.3 30,901.3 Private Suppliers ............. 2,149.5 3,908.5 6,043.7 4,122.2 1,072.4 1,225.5 18,521.8 Financial institutions ... 3,062.6 4,648.8 16,109.0 3,488.5 246.7 4,847.1 32,402.8 Other ............... 694.4 625.4 2,957.8 243.0 14.0 2,500.1 7,034.7 Total ............... 18,813.9 24,387.9 46,649.6 23,349.0 26,284.4 20,555.4 160,040.2 December 31, 1975 Bilateral official ........ 9,487.5 11,586.8 12,576.1 16,257.2 19,654.4 9,512.6 79,074.6 Multilateral .... 5,519.6 6,023.3 11,799.2 3,192.8 7,709.7 3,744.1 37,988.7 Private Suppliers ............. 2,549.6 3,857.0 5,758.8 5,888.8 873.2 1,144.3 20,071.8 Financial institutions ... 3,600.5 7,976.0 22,225.7 5,982.0 278.3 6,125.4 46,188.0 Other ............... 491.9 585.2 3,041.5 225.2 2.0 2,710.8 7,056.6 Total ............... 21,649.0 30,028.3 55,401.4 31,546.0 28,517.7 23,237.3 190,379.7 December 31, 1976 Bilateral official ........ 10,831.1 14,075.3 15,336.6 19,344.6 21,345.2 12,002.0 92,934.7 Multilateral ............ 6,704.8 7,749.7 14,316.0 4,168.5 8,661.7 4,297.0 45,897.7 Private Suppliers ............. 2,813.1 4,384.6 6,180.7 6,711.1 828.4 1,226.2 22,144.1 Financial institutions ... 4,741.6 11,302.4 31,330.2 9,479.0 351.7 7,913.9 65,118.8 Other ............... 209.6 1,132.9 4,308.7 288.9 2.1 2,899.8 8,842.0 Total ............... 25,300.1 38,645.0 71,472.1 39,992.2 31,189.0 28,338.9 234,937.3 December 31, 1977 Bilateral official ........ 12,532.5 16,576.7 16,454.8 22,580.2 23,889.8 13,153.9 105,188.0 Multilateral ............ 8,117.8 9,659.2 16,559.3 7,060.1 10,440.4 5,075.4 56,912.2 Private Suppliers ............. 3,224.7 5,292.2 7,553.2 8,642.8 843.4 1,342.8 26,899.1 Financial institutions ... 6,184.2 13,288.3 39,616.3 16,021.1 446.2 9,437.4 84,993.6 Other .. .. .. 192.8 1,560.9 5,565.1 399.0 2.1 3,474.2 11,194.2 Total ........ .... 30,252.0 46,377.4 85,748.7 54,703.3 35,622.0 32,483.6 285,186.9 Note: Information on the sources, definitions, and interpretation of the data, and a list of the countries included are given in the "General Notes to Annex Tables." Items may not add to totals due to rounding. (X) Does not include publicly guaranteed private debt of the Phifippines estimated at $552.9 million as of the end of 1977. (2) Does not include nonpublicly guaranteed debt of the "social sector" of Yugoslavia contracted after March 31, 1966. Source: World Bank. Statistical Annex 135 96 Developing Countries-External Public Debt Outstanding, Table 4 by Country and Type of Creditor, December 31, 1977 (US$ millions) External public debt outstanding Including undisbursed Region Disbursed Bilateral Multi- Financial Country only Total official lateral Suppliers institutions Other Africa South of the Sahara Benin ........................ 133.8 237.3 105.5 113.6 8.1 10.2 - Botswana ........................ 180.9 259.1 137.5 119.4 - - 2.2 Burundi ........................ 37.3 106.4 41.3 55.4 4.5 5.2 - Cameroon ........................ 749.3 1,208.1 487.5 419.5 18.8 282.4 - Central African Empire . . ..... 115.4 147.1 42.6 44.8 57.1 2.6 - Chad ... ............... . .. 116.5 244.7 104.3 104.4 25.8 10.2 - Comoros . . ..................... . 37.4 52.4 22.3 30.1 - - - Congo, People's Republic of the ....... 479.9 744.4 424.7 119.3 165.7 34.7 - East African Community . . ..... 295.9 327.5 86.6 204.2 8.1 - 28.6 Ethiopia ..... . ........ .......... 470.6 783.5 303.2 461.9 0.6 17.9 - Gabon . . ...................... 1,252.4 1,297.6 237.1 59.2 230.2 762.3 8.9 Gambia, The .... . ................. 23.4 86.3 60.1 26.3 - - - Ghana ........................ 785.0 1,050.1 544.1 316.5 189.6 - Guinea ...................... .. 717.5 798.3 602.1 100.6 84.2 11.5 - Ivory Coast ........................ 1,973.2 3,640.2 580.0 564.3 739.8 1,736.9 19.2 Kenya ........................ 821.4 1,602.0 509.3 707.7 65.7 275.2 44.1 Lesotho ......... ............... 22.8 67.3 6.2 60.5 - 0.6 - Liberia ........ ................ 265.8 387.3 206.8 128.1 12.6 39.6 - Madagascar ...................... 202.8 392.1 192.1 190.7 4.6 2.3 2.4 Malawi ....................... . 292.1 433.5 204.2 176.6 8.0 38.0 6.6 Mali ...................... .. 448.9 683.3 462.4 208.9 8.2 3.8 - Mauritania ........................ 457.4 677.9 402.8 110.0 71.8 63.3 30.0 Mauritius ........................ 67.5 212.3 95.8 79.5 - 37.0 - Niger ........................ 122.2 267.1 162.7 97.1 4.4 2.8 Nigeria ....... ................ . 891.4 1,338.8 519.0 769.4 45.6 4.8 - Rwanda ........................ 77.6 159.4 59.9 97.7 1.5 - 0.4 Senegal ........... ............. 440.6 812.3 296.6 229.4 50.0 232.7 3.6 Sierra Leone . . ..................... 190.2 249.9 68.6 72.8 92.9 15.6 - Somalia . . ............... ....... 401.0 874.7 691.8 179.8 0.4 - 2.7 Sudan . . ...................... 1,732.2 2,822.8 1,515.5 505.5 311.8 490.0 - Swaziland . . ...................... 55.1 112.6 49.4 62.6 0.6 - - Tanzania . . . .1.................... 1005.0 1,518.3 906.1 554.2 24.0 20.2 13.7 Togo ........................ 284.5 575.9 155.8 106.1 111.9 202.0 - Uganda ........................ 215.0 335.2 250.1 81.8 - 0.4 2.8 Upper Volta ........................ 134.9 293.7 153.1 138.6 0.6 1.5 - Zaire ........................ 2,666.1 3,603.6 1,131.5 368.5 671.9 1,425.3 6.5 Zambia ....................... . 1,392.0 1,849.1 713.9 452.9 205.9 455.2 21.2 Total ........................ 19,555.1 30,252.0 12,532.5 8,117.8 3,224.7 6,184.2 192.8 East Asia and Pacific China, Republic of ....... .......... 2,613.0 3,836.5 1,376.6 304.1 354.4 1,801.6 - Fiji . .... ........... 82.0 101.8 37.8 43.1 6.6 10.0 4.4 Indonesia . ............... 11,408.7 15,903.9 8,281.9 2,485.9 1,549.1 3,377.5 209.6 Korea, Republic of . ........... 8,472.3 13,483.9 3,832.5 2,372.5 2,798.0 4,313.7 167.1 Malaysia . ............... 2,053.0 3,559.3 717.8 1,103.1 35.3 1,576.0 127.1 Papua New Guinea . .......... 337.7 413.3 12.8 166.4 3.3 86.5 144.2 Philippines . .......... __ ......... 2,985.1 5,627.3 1,489.7 1,770.7 262.4 1,581.5 523.1 Singapore . .............. 994.0 1,188.5 220.0 230.0 270.1 82.9 385.4 Thailand . ............... 1,050.6 2,263.0 607.7 1,183.4 13.2 458.7 - Total ........................ 29,996.5 46,377.4 16,576.7 9,659.2 5,292.2 13,288.3 1,560.9 Latin America and the Caribbean Argentina ........................ 4,899.8 6,987.7 948.9 1,482.7 1,654.8 2,127.6 773.7 Barbados ........................ 46.0 79.3 27.5 32.1 1.0 18.8 - Bolivia ........................ 1,361.1 1,962.6 693.1 466.7 136.0 575.5 91.3 Brazil ....................... . 19,220.9 23,286.6 4,460.9 4,165.8 2,856.9 10,434.5 1,368.5 Chile ....................... . 3,583.2 4,638.7 1,961.3 503.6 636.6 1,224.6 312.5 Colombia . ........... ............ 2,622.0 3,641.5 1,158.7 1,597.0 220.7 605.5 59.5 Costa Rica ........... ............. 734.6 1,302.8 239.5 545.5 71.5 440.2 6.0 Dominican Republic . .......... 606.5 865.3 392.5 201.3 14.3 257.2 - (continued) 136 Statistical Annex 96 Developing Countries-External Public Debt Outstanding, Table 4 by Country and Type of Creditor, December 31, 1977 (continued) (US$ millions) External public debt outstanding Including undisbursed Region Disbursed Bilateral Multi- Financial Country only Tota I official lateral Suppliers institutions Other Latin America and the Caribbean (continued) Ecuador ....... ................. 1,156.8 1,752.5 286.6 483.6 127.5 788.0 66.9 El Salvador ........................ 265.9 443.9 132.3 283.5 - 26.0 2.1 Guatemala ........................ 252.8 639.8 192.4 436.5 3.4 7.5 - Guyana ........................ 402.2 497.6 204.1 55.5 24.6 129.6 83.8 Haiti ........................ 126.1 214.9 77.8 131.8 1.5 3.8 - Honduras ........................ 435.9 786.9 210.5 506.4 20.8 49.1 - Jamaica. . 896.4 1,243.9 433.4 243.6 27.0 406.3 133.6 Mexico ........................ 19,208.3 21,617.7 1,485.5 3,152.7 315.6 15,567.5 1,096.4 Nicaragua ........................ 864.0 1,151.2 315.9 347.6 18.1 460.5 9.1 Panama ........................ 1,348.7 1,835.2 314.0 445.4 54.0 957.5 64.4 Paraguay ...................... .. 317.1 532.3 184.7 188.8 51.4 107.4 0.1 Peru ...... .................. 4,659.2 6,344.7 2,301.7 648.5 1,015.7 2,376.2 2.7 Trinidad and Tobago ................ 251.7 284.9 36.0 82.3 - 159.7 6.9 Uruguay ........................ 707.0 974.8 171.5 239.5 31.4 163.2 369.3 Venezuela ........................ 4,463.4 4,663.7 226.2 318.8 270.3 2,730.0 1,118.5 Total .. ...................... 68,429.5 85,748.7 16,454.8 16,559.3 7,553.2 39,616.3 5,565.1 North Africa and Middle East Algeria .................... .... 8,164.9 13,785.2 2,154.1 554.2 4,869.3 6,003.6 204.1 Bahrain ........................ 65.0 153.6 135.8 17.9 - - - Egypt, Arab Republic of .............. 8,099.4 12,487.6 7,996.1 2,990.6 823.7 645.1 32.0 Iran ............ ............ 6,197.7 11,422.0 2,674.4 808.0 2,011.7 5,833.6 94.3 Iraq ........................ 761.0 1,221.3 622.8 91.9 6.7 500.0 - Jordan ........................ 645.0 1,236.5 794.6 133.8 50.8 257.4 Lebanon ........................ 39.2 173.0 36.7 135.3 - 1.0 - Morocco .............. .......... 3,469.3 5,074.2 1,860.3 793.2 412.4 1,990.1 18.2 Oman ........................ 552.9 864.2 447.1 73.0 140.0 204.2 - Syrian Arab Republic ................ 1,528.2 3,691.8 3,012.0 464.8 166.8 48.2 - Tunisia ........................ 1,943.4 3,425.7 2,039.0 639.3 159.0 537.9 50.5 Yemen Arab Republic ................ 312.3 642.9 421.7 218.8 2.4 - - Yemen, People's Democratic Republic of ....................... 291.0 525.2 385.6 139.6 - - Total ........................ 32,069.2 54,703.3 22,580.2 7,060.1 8,642.8 16,021.1 399.0 South Asia Afghanistan . ...................... 1,058.6 1,891.0 1,669.8 193.0 28.2 - - Bangladesh ........................ 2,290.9 3,491.2 2,096.2 1,216.2 149.6 29.2 Burma ........................ 499.5 1,187.1 660.3 334.8 102.0 90.1 - India ........................ 14,531.0 18,759.7 12,029.4 6,351.3 276.7 100.1 2.1 Nepal ........................ 70.9 299.4 59.7 239.0 0.7 - - Pakistan .................... .... 6,772.4 8,763.8 6,515.3 1,822.1 199.7 226.7 Sri Lanka ........................ 787.0 1,229.8 859.0 283.9 86.7 0.1 Total ......................... 26,010.4 35,622.0 23,889.8 10,440.4 843.4 446.2 2.1 More advanced Mediter- ranean countries Cyprus ........................ 162.3 215.2 30.1 123.3 27.3 34.5 - Greece ........................ 2,635.4 3,495.5 790.4 496.8 113.1 1,966.4 128.9 Israel ........................ 6,568.1 7,233.5 4,249.0 176.8 103.8 640.4 2,063.5 Malta ........................ 51.5 62.0 58.7 1.8 - 1.5 - Portugal ........................ 1,455.0 1,864.5 444.1 372.2 395.1 565.1 88.0 Spain ........................ 7,003.0 8,735.1 2,070.1 547.4 168.0 4,805.3 1,144.2 Turkey ........................ 4,323.2 7,182.8 3,769.8 1,909.7 495.8 973.8 33.7 Yugoslavia ..................... 2,823.6 3,695.1 1,741.7 1,447.3 39.7 450.4 16.0 Total ........................ 25,022.2 32,483.6 13,153.9 5,075.4 1,342.8 9,437.4 3,474.2 GRAND TOTAL .................... 201,083.0 285,186.9 105,188.0 56,912.2 26,899.1 84,993.6 11,194.2 Note: Information on the sources, definitions, and interpretation of the data is given in the "General Notes to Annex Tables." Items may not add to totals due to rounding. Source: World Bank. Statistical Annex 137 Service Payments on External Public Debt as Percentage of Exports of Table 5 Goods and Services, 1971-77 Service payments as percentage of exports of goods and services Region Country 1971 1972 1973 1974 1975 1976 1977 Africa South of the Sahara Benin ........................ ......... 4.0 3.3 1.9 4.8 4.3 2.7 5.9 Botswana(') ................................. 2.2 2.8 2.6 2.7 3.1 1.7 2.0 Burundi ................. ................ 2.6 6.7 2.5 2.8 5.8 4.5 2.8 Cameroon ................................. 4.4 4.8 4.7 4.3 5.3 5.8 6.6 Central African Empire ............... ........... 2.0 1.4 4.4 4.9 7.4 2.0 4.5 Chad . ................................. 8.5 5.1 3.3 3.1 5.5 3.9 9.3 Comoros ................................. 0.1 0.3 1.4 1.0 4.6 5.3 7.0 Congo, People's Republic of the ................... 8.2 8.6 7.5 6.7 11.8 6.4 9.6 Ethiopia ................................. 10.3 8.6 6.3 5.4 7.4 6.6 6.4 Gabon ................................. 7.2 7.1 14.1 4.1 5.5 6.1 9.5 Gambia, The ................................. 0.9 1.0 1.1 0.8 0.6 0.6 0.5 Ghana .. ............................... 7.1 3.2 3.6 3.7 5.8 6.2 3.7 Guinea ................................. 29.2 24.0 22.2 16.5 10.3 20.0 43.5(P) Ivory Coast ................................. 7.6 8.1 7.2 7.9 8.8 9.0 12.2 Kenya(2) ................................. 8.1 6.0 5.4 4.6 4.3 5.6 4.6 Lesotho() ............................... .. 6.7 4.2 3.2 1.9 2.7 4.2 3.3 Liberia(1) ................................. 6.6 6.0 5.2 4.8 5.1 4.2 5.1 Madagascar ................... .............. 4.3 3.8 5.3 3.5 3.3 3.7 3.1 Malawi ........................... ...... 7.7 7.4 7.4 7.6 7.7 6.7 5.0 Mali ................................. 1.2 1.3 5.8 2,3 2.4 2.7 4.0 Mauritania .......... ...................... 3.6 10.7 9.1 6.6 20.6 37.3 22.6 Mauritius ................................. 4.2 1.6 1.3 0.8 1.6 0.9 1.6 Niger ................................. 3.0 2.6 2.1 2.9 4.5 5.0 4.0 Nigeria ................................. 3.0 2.8 4.0 1.7 2.7 3.4 0.8 Rwanda ................................. 1.8 2.1 0.3 0.8 1.3 0.7 1.0 Senegal ......................... ........ 5.0 3.8 7.8 5.4 5.5 5.9 8.4 Sierra Leone ................................. 7.3 8.1 8.6 8.4 10.2 15.4 9.8 Somalia ................................. 2.3 3.0 3.6 4.2 3.4 2.7 10.7 Sudan ................................. 12.9 13.0 11.4 13.7 25.9 13.7 8.7 Swaziland() ................................. 5.2 10.1 9.5 2.3 1.6 0.8 0.9 Tanzania(2) ................................. 8.1 13.4 8.6 6.6 7.0 6.7 7.1 Togo ................................. 2.9 6.4 6.8 3.4 10.0 7.2 11.8 Uganda(2) ................................. 4.0 4.0 8.3 4.5 3.6 2.8 3.9 Upper Volta .. ............................... 3.7 2.8 3.2 3.0 3.7 3.2 3.8 Zaire ................................. 4.9 8.0 8.2 11.1 15.0 11.3 10.0 Zambia ................................. 10.0 12.9 30.1(0) 7.1 10.0 10.0 18.6 East Asia and Pacific China, Republic of ............................. 4.4 4.0 3.5 2.6 3.8 3.4 4.3 Fiji ................................. 0.7 0.8 0.8 1.6 1.5 2.2 2.3 Indonesia ................................. 7.0 6.9 6.4 3.9 8.1 11.3 11.9 Korea, Republic of ............................... 18.6 17.7 14.5 9.7 10.4 9.2 8.7 Malaysia ................................. 2.6 2.7 2.6 2.6 3.4 4.6 6.5 Papua New Guinea .............................. 2.0 2.9 1.6 2.7 4.5 4.4 4.3 Philippines ................................. 6.9 10.1 8.7 5.2 7.3 6.6 6.4 Singapore ............................. .... 0.7 1.0 0.6 0.6 0.7 0.8 0.8 Thailand ................................. 3.2 2.7 2.6 1.9 2.4 2.4 3.0 Latin America and the Caribbean Argentina ................................. 20.2 20.4 17.8 16.6 21.5 18.2 15.0 Barbados ................................. 0.6 5.5 2.3 1.9 1.8 1.7 3.3 Bolivia ................................. 12.0 17.8 15.2 10.8 14.9 16.1 20.6 Brazil ................................. 14.5 13.9 11.3 10.9 15.4 17.0 18.4 Chile ................................. 21.2 10.0 10.9 11.5 28.6 32.2 32.4 Colombia ................................. 14.1 12.4 13.0 15.7 11.0 9.4 8.7 Costa Rica ................................. 9.9 9.6 10.0 9.3 10.4 9.1 9.0 Dominican Republic .............................. 6.8 4.7 5.7 5.7 6.1 7.3 7.0 Ecuador ................................. 12.4 10.4 7.4 7.1 4.5 5.7 7.7 El Salvador ................................. 5.7 3.1 5.2 4.6 9.0(3) 3.8 5,9(3) Guatemala ................................. 7.9 10.3 3.5 3.7 1.7 1.5 1.3 Guyana ................................. 2.9 5.5 6.8 4.9 4.7 10.3 15.5 (continued) 138 Statistical Annex Service Payments on External Public Debt as Percentage of Exports of Table 5 Goods and Services, 1971-77 (continund) Service payments as percentage of exports of goods and services Region Country 1971 1972 1973 1974 1975 1976 1977 Latin America and the Caribbean (continued) Haiti(4' .................................... 7.5 6.1 7.4 6.6 7.2 7.3 7.1 Honduras .................................... 3.2 3.3 3.7 3.6 4.8 6.3 6.9 Jamaica .. .................................. 3.2 4.2 5.4 5.7 6.8 10.9 14.9 Mexico .... ............................... 22.8 22.3 23.8 18.7 25.0 32.5 48.1 Nicaragua .......................... .......... 13.2 9.4 18.9 10.4 11.3 12.2 13.8 Panama(', .... ...................... 9.0 10.4 14.4(0) 12.8(3) 6.0 8.1 12.2 Paraguay .... ..... .... ........... ...... 13.7 12.9 10.1 7.6 9.7 8.7 6.3 Peru .. ................................... 15.6 15.6 29.1(3) 23.0(s) 25.3 25.9 30.3 Trinidad and Tobago ..........- ................ 3.6 1.5 1.7 2.2(3) 1.2(3) 2.9(0) 0.5 Uruguay ................................... 22.4 30.4 22.6 32.5 45.6 29.2 27.7 Venezuela ....... ............................ 3.8 6.1 5.9 4.2(3) 5.3(3) 3.8 7.5 North Africa and Middle East Algeria .............................. .... 5.8 11.8 12.8 13.5(0) 8.8 13.0 15.5 Bahrain ......... ............ .............. - 0.1 0.1 0.1 0.2 0.3 0.4 Egypt, Arab Republic of ......................... 28.8 31.1 40.2 21.7 22.4 18.2 22.8 Iran(4) .. .... . .. ..... ..... 12.7 20.1 14.5(3) 6.9 4.2 3.3 3.2 Iraq ................................... 2.0 2.9 2.9 1.5 0.7 0.6 1.1 Jordan ................................... 6.6 6.6 5.9 4.3 3.5 2.7 3.2 Lebanon ................................... 1.3 1.0 1.1 0.9 0.9 1.0 0.7 Morocco ................................... 10.2 9.2 8.2 5.4 5.4 6.2 10.9 Oman ........................... .. ...... - - - 0.8 2.4 2.2 4.4 Syrian Arab Republic ................. - ......... 10.4 8.3 7.0 6.1 7.6 7.3 6.7 Tunisia ..................... .............. 14.8 14.7 10.2 6.4 6.6 7.0 8.8 Yemen Arab Republic(4L .... .... . ........) - - - 4.7 1.0 0.6 0.2 Yemen, People's Democratic Republic of ............ - 0.0 0.0 0.0 0.1 0.0 0.1 South Asia Afghanistan(4) ....... ......... .......... 25.7 17.8 19.4 15.5 7.9 8.3 8.2 Bangladesh ................................... - - 2.1 5.9 17.7 13.4 11.7 Burma(4) ......... ....... ......... 13.9 17.8 26.5 12.9 17.5 16.2 13.2 India(4) ........... ........................ 23.7 22.5 19.1 16.7 12.6 10.9 10.5 Nepal .............................. ..... 0.9 1.2 1.6 2.3 3.9 3.1 1.4 Pakistan(5) ......... ....... ......1 17.9 21.1 14.7 13.8 15.8 15.0 13.6 Sri Lanka. ............................. 10.6 13.5 12.8 12.0 21.8 20.1 14.6 More advanced Mediter- ranean countries Cyprus ................................... 9.2 2.1 1.9 2.2 3.2 2.9 2.7 Greece ................................... 8.3 7.7 8.5 8.7 10.5 10.1 9.6 Israel ............ ....................... 12.5 16.9 17.0 16.3 18.9 12.0 16.1 Malta .......... ......................... 10.2 0.6 0.4 0.7 0.6 0.4 0.4 Portugal ................................... 3.8 3.4 2.5 2.0 2.9 2.9 5.3 Spain ................................... 5.1 3.2 3.3 2.4 2.6 3.4 4.5 Turkey . .................................. 11.9 11.2 6.8 6.7 7.9 8.1 11.0 Yugoslavia ............................... .... 5.4 5.1 5.4 5.5 5.7 3.6 6.7 Note: Debt service ratios are based on debt service actually paid as reported by the countries and not on contractual service due. Information on the sources, definitions, and interpretation of the data is given in the "General Notes to Annex Tables." ,1) Because of special monetary arrangernents peculiar to countries such as this, the debt service ratio must be regarded with more than usual caution in considering the country's external financial situation. (2) Includes a notionat share of debt service payments on loans to the East African Community: Kenya-50%, Tanzania-40%, Uganda-1ly%. 31 Service payments for these years reflect prepayments. (0 Data are for fiscal years. an Includes figures up to 1974 relating to debt subsequently taken over by Bangladesh. RI Preliminary. Source: World Bank and IMF. Projected Debt Service on External Public Debt Outstanding, by Region and Type of Creditor, as of December 31, 1977 Table 6 a (US$ millions) Debt out- standing (including Projected debt service Region undisbursed) ": Type of creditor December 31, 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 ;: X Africa South of the Sahara Bilateral official ....... .................. 12,532.5 785.1 817.6 856.9 926.5 909.5 892.5 834.7 820.2 818.6 732.8 Multilateral ....................... 8,117.8 303.7 358.2 405.6 454.7 492.0 522.8 525.3 532.3 538.3 533.3 Private Suppliers .................. ........ 3,224.7 583.6 577.0 558.4 521.2 425.3 342.2 281.0 199.8 122.3 76.7 Financial institutions ...... . ........... 6,184.2 1,059.6 1,251.6 1,324.7 1,069.5 845.7 656.3 470.5 322.9 237.3 176.2 Other ...... ..................... 192.8 62.7 31.9 31.1 19.5 24.6 28.9 10.7 3.3 2.6 2.3 Total .................... 30,252.0 2,794.7 3,036.3 3,176.7 2,991.3 2,697.3 2,442.6 2,122.3 1,878.5 1,719.2 1,521.3 East Asia and Pacific Bilateral official ...... .... 16,576.7 1,034.4 1,160.6 1,233.7 1,260.1 1,307.6 1,341.2 1,315.5 1,295.2 1,228.1 1,138.4 Multilateral ........................... 9,659.2 484.5 610.9 743.7 861.3 956.6 986.5 991.6 986.1 969.2 946.2 Private Suppliers .................. ..... 5,292.2 778.7 904.5 987.3 877.1 792.5 720.2 616.8 540.8 583.9 148.8 Financial institutions .................... 13,288.3 2,533.9 2,900.1 2,971.0 2,253.0 1,815.5 1,383.3 1,015.8 693.0 627.2 468.6 Other ......................... .. 1,560.9 127.8 169.8 131.2 175.9 205.5 220.7 227.2 113.7 89.7 142.8 Total .......................... 46,377.4 4,959.4 5,746.0 6,066.8 5,427.5 5,077.6 4,651.9 4,166.9 3,628.8 3,498.1 2,844.8 Latin America and the Caribbean Bilateral official ....... ................. 16,454.8 1,662.4 1,798.3 1,755.5 1,713.7 1,743.1 1,643.6 1,493.9 1,338.7 1,187.5 1,071.8 Multilateral ......... ................. 16,559.3 1,110.9 1,262.3 1,453.8 1,664.5 1,727.8 1,729.8 1,693.5 1,657.8 1,599.7 1,527.7 Private Suppliers ............ .. 7,553.2 1,737.9 1,550.8 1,397.9 1,159.7 951.8 747.0 579.5 408.4 274.8 187.1 Financial institutions ..... .... .... 39,616.3 9,768.7 10,984.4 9,882.1 7,239.7 4,959.4 3,507.5 2,147.0 860.6 573.0 281.4 Other .......... ... 5,565.1 1,046.5 1,039.3 964.6 769.0 984.0 561.5 1,145.0 336.3 298.7 326.0 Total ........................... 85,748.7 15,326.6 16,635.1 15,454.0 12,546.5 10,366.1 8,189.4 7,059.0 4,601.8 3,933.7 3,394.0 North Africa and Middle East Bilateral official ......................... 22,580.2 1,876.2 1,922.4 2,044.8 2,789.1 2,077.8 1,897.9 1,748.0 1,453.5 1,274.7 2,020.6 Multilateral ........................ . 7,060.1 294.1 378.4 471.7 548.9 747.8 768.4 761.1 747.0 730.8 702.9 Private Suppliers ........ ... 8,642.8 1,386.0 1,330.5 1,339.1 1,157.8 1,275.0 1,065.6 872.3 720.7 557.1 365.6 Financial institutions. . 16,021.1 1,775.7 2,353.6 3,148.3 3,143.0 2,996.2 2,378.1 1,861.3 1,330.9 794.9 600.6 Other .. 399.0 70.3 70.0 66.3 78.4 87.8 56.7 28.7 18.8 17.6 16.5 Total . ............... 54,703.3 5,402.3 6,054.9 7,070.2 7,717.1 7,184.7 6,166.7 5,271.4 4,270.9 3,375.2 3,706.1 (continted) Projected Debt Service on External Public Debt Outstanding, by Region and Type of Creditor, as of December 31, 1977 (continued) Table 6 A (US$ mililons) Debt out- standing (including Projected debt service Region undisbursed) Type of creditor December 31, 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 South Asia Bilateral official ......................... .. 23,889.8 1,258.5 1,312.6 1,381.2 1,493.2 1,507.1 1,456.0 1,420.6 1,416.6 1,409.5 1,358.6 Multilateral . ................... 10,440.4 248.9 260.5 291.5 290.8 311.2 323.9 335.5 352.6 367.5 385.5 Private Suppliers ................... 843.4 174.3 159.7 133.6 117.7 102.4 83.2 60.8 48.7 36.0 22.1 Financial institutions .......................... 446.2 71.0 84.0 79.2 70.3 62.9 46.4 42.2 33.5 24.0 18.2 Other ............................. 2.1 0.1 0.1 0.1 0.1 0.1 1.2 1.1 0.0 0.0 0.0 Total : .... .. . 35,622.0 1,752.8 1,816.9 1,885.6 1,972.2 1,983.6 1,910.7 1,860.3 1,851.5 1,837.0 1,784.4 More advanced Mediterranean countries Bilateral official . ............................. 13,153.9 1,355.8 1,477.9 1,422.7 1,396.6 1,392.2 1,305.7 1,154.6 1,068.0 970.8 782.8 Multilateral .............................. 5,075.4 372.7 429.7 490.2 577.7 623.1 648.3 605.3 522.7 495.0 468.7 Private Suppliers ...... ....................... 1,342.8 250.9 275.3 216.7 189.3 172.5 135.5 113.3 98.6 86.3 71.6 Financial institutions .......................... 9,437.4 1,656.4 2,132.2 2,133.2 1,974.2 1,552.6 1,134.9 844.1 457.4 163.9 157.0 Other .............................. 3,474.2 289.4 372.4 376.6 400.0 583.0 345.6 332.3 162.2 223.0 230.7 Total ........................... ... 32,483.6 3,925.3 4,687.6 4,639.4 4,537.6 4,323.4 3,570.0 3,049.6 2,308.8 1,939.0 1,710.8 96 developing countries Bilateral official .............................. 105,188.0 7,972.3 8,489.4 8,694.8 9,579.1 8,937.5 8,536.9 7,967.4 7,392.2 6,889.1 7,105.1 Multilateral . ..... ............. 56.912.2 2,814.9 3,300.0 3,856.4 4,397.8 4,858.5 4,979.6 4,912.5 4,798.6 4,700.4 4,564.3 Private Suppliers . .......................... 26,899.1 4,911.5 4,797.9 4,633.1 4,022.8 3,719.5 3,093.7 2,523.7 2,017.0 1,660.5 871.8 Financial institutions ......................... 84.993.6 16,865.3 19,705.9 19,538.5 15,749.7 12,232.3 9,106.5 6,380.9 3,698.4 2,420.4 1,701.9 Other ...................... 11,194.2 1,597.0 1,683.4 1,569.9 1,442.9 1,885.1 1,214.4 1,744.9 634.2 631.7 718.3 Total . .............. .... 285,186.9 34,160.9 37,976.7 38,292.7 35,192.3 31,632.8 26,931.2 23,529.5 18,540.4 16,302.1 14,961.4 Note: Information on the sources, definitions, and interpretation of the data, and a list of the countries included are given in the "General Notes to Annex Tables." Items may not add to totals due to rounding. Source: World Bank. 2s N Statistical Annex 141 External Resource Flows and Service Payments on Table 7 External Public Debt, by Region, 1971-77 (US$ millions) Disbursements Debt service Region Grants and Amorti- Net Net Year Loans grantlike Total zation Interest Total flow transfer Africa South of the Sahara 1971 .................... 1,084.4 376.0 1,460.4 345.6 191.1 536.6 1,114.8 923.7 1972 ............ ........ 1,519.1 626.7 2,145.8 433.8 210.2 644.0 1,712.1 1,501.9 1973 ......... ........... 2,172.4 515.7 2,688.1 812.6 329.5 1,142.2 1,875.5 1,546.0 1974 .................. .. 2,720.8 814.6 3,535.4 683.9 357.8 1,041.6 2,851.5 2,493.8 1975 .............. ... 3,521.9 973.2 4,495.1 844.4 454.2 1,298.6 3,650.7 3,196.5 1976 .................... 3,737.3 866.8 4,604.1 1,052.7 472.5 1,525.2 3,551.5 3,078.9 1977 ................ .... 3,962.4 928.7 4,891.1 1,068.5 572.1 1,640.6 3,822.5 3,250.4 East Asia and Pacific 1971 ..... ............... 1,571.6 317.2 1,888.8 480.2 230.0 710.2 1,408.7 1,178.7 1972 .................... 2,352.5 407.3 2,759.8 608.7 341.2 949.9 2,151.1 1,809.8 1973 ............ ..... 2,691.3 333.9 3,025.2 945.4 459.1 1,404.5 2,079.8 1,620.7 1974 .................... 3,544.3 362.0 3,906.3 917.4 504.5 1,421.9 2,988.8 2,484.3 1975 .................... 6,001.5 431.4 6,432.9 1,198.6 764.7 1,963.3 5,234.3 4,469.6 1976 . ............. 6,568.7 328.7 6,897.4 1,663.2 1,205.2 2,868.5 5,234.2 4,029.0 1977 ... ....... 6,940.8 409.6 7,350.4 2,420.6 1,454.7 3,875.3 4,929.8 3,475.2 Latin America and the Caribbean 1971 ............... .... 3,677.0 263.3 3,940.3 1,828.6 839.4 2,668.0 2,111.7 1,272.3 1972 ................... 5,323.9 263.6 5,587.5 2,086.3 964.9 3,051.2 3,501.2 2,536.3 1973 ................... 7,427.9 250.1 7,678.0 2,873.2 1,368.9 4,242.1 4,804.8 3,435.9 1974 ................... 10,399.6 250.7 10,650.3 3,348.2 1,992.4 5,340.6 7,302.1 5,309.7 1975 ................... 12,014.6 258.9 12,273.5 3,748.2 2,715.0 6,463.2 8,525.3 5,810.3 1976 ................... 16,784.3 256.0 17,040.3 4,752.5 3,226.8 7,979.2 12,287.8 9,061.1 1977 ............. ...... 19,187.6 241.7 19,429.3 7,350.4 3,888.6 11,239.0 12,078.9 8,190.3 North Africa and Middle East 1971 2,047.8 193.7 2,241.5 869.7 243.4 1,113.0 1,371.9 1,128.5 1972 ............. ..... 2,422.9 193.7 2,616.6 1,370.5 328.4 1,698.9 1,246.1 917.7 1973 .................. 4,613.3 189.1 4,802.4 1,773.4 442.9 2,216.2 3,029.0 2,586.1 1974 ................... 3,369.9 269.6 3,639.5 2,555.7 702.0 3,257.7 1,083.8 381.8 1975 .................. 6,118.5 232.9 6,351.4 1,789.9 690.6 2,480.5 4,561.5 3,870.9 1976 ..... .............. 6,512.3 221.5 6,733.8 1,961.0 829.1 2,790.1 4,772.8 3,943.7 1977 11,591.1 251.3 11,842.4 2,458.4 1,235.0 3,693.4 9,384.0 8,149.0 South Asia 1971 .1,755.6 346.0 2,101.6 481.1 301.8 782.9 1,620.4 1,318.6 1972 .................. 1,333.4 395.5 1,728.9 546.1 343.0 889.1 1,182.8 839.9 1973 . .................. 1,764.0 460.8 2,224.8 606.2 374.1 980.3 1,618.6 1,244.5 1974 ................ .. 2,848.5 575.1 3,423.6 715.8 376.1 1,091.9 2,707.8 2,331.7 1975 ................... 3,671.2 1,029.3 4,700.5 863.8 405.3 1,269.2 3,836.7 3,431.3 1976 ....... ........... 3.132.7 817.1 3,949.8 819.0 459.0 1,278.0 3,130.9 2,671.8 1977 ......... .......... 2,721.4 976.1 3,697.5 888.5 508.4 1,396.9 2,809.0 2,300.6 More advanced Mediterranean countries 1971 .................... 2,076.4 37.4 2,113.8 846.7 346.6 1,193.3 1,267.0 920.5 1972 .................... 2,498.1 37.5 2,535.6 948.7 410.9 1,359.6 1,586.9 1,176.0 1973 .................... 2,910.6 123.3 3,033.9 1,162.2 571.7 1,733.9 1,871.8 1,300.0 1974 .................... 3,467.1 94.4 3,561.5 1,298.2 686.2 1,984.4 2,263.3 1,577.1 1975 .................... 4,330.2 440.4 4,770.6 1,508.2 870.9 2,379.1 3,262.4 2,391.5 1976 ....... ............ 4,458.6 543.4 5,002.0 1,302.5 971.7 2,274.1 3,699.5 2,727.9 1977 ................... 4,868.1 644.1 5,512.2 2,120.2 1,302.4 3,422.6 3,392.0 2,089.6 96 developing countries 1971 ................... 12,212.8 1,533.6 13,746.4 4,851.9 2,152.2 7,004.1 8,894.5 6,742.3 1972 .............. ..... 15,449.9 1,924.3 17,374.2 5,994.0 2,598.6 8,592.6 11,380.2 8,781.6 1973 ................... 21,579.5 1,872.9 23,452.4 8,173.0 3,546.3 11,719.3 15,279.4 11,733.1 1974 . .................. 26,350.3 2,366.4 28,716.7 9,519.2 4,619.0 14,138.2 19,197.4 14,578.5 1975 ........... ........ 35,657.9 3,366.1 39,024.0 9,953.1 5,900.7 15,853.8 29,070.9 23,170.2 1976 ... ................. 41,194.0 3,033.5 44,227.5 11,550.8 7,164.3 18,715.1 32,676.7 25,512.4 1977 .......... ......... 49,271.4 3,451.5 52,722.9 16,306.6 8,961.3 25,267.9 36,416.4 27,455.0 Note: Information on the sources, definitions, and interpretation of the data, and a list of the countries included are given in the "General Notes to Annex Tables." Items may not add to totals due to rounding. Source: World Bank and OECD. 142 Statistical Annex Average Terms of Loan Commitments and Grant Element of Table 8 Loans and Grants, by Region, 1971-77 (Amounts in US$ millions) Loan commitments Grant element Grant of loans Region Maturity Grace Interest element Grants and grants Year Amount (years) (years) (%) (%) (amount) (%) Africa South of the Sahara 1971 ................. ... 1,423.5 21.5 6.1 4.4 39 376.0 52 1972 .................... 1,898.8 21.4 5.7 4.4 38 626.7 53 1973 .................... 3,975.7 20.4 5.7 5.4 32 515.7 40 1974 .................... 4,371.1 19.5 5.8 5.5 32 814.6 43 1975 .................... 4,485.7 20.7 5.2 5.6 31 973.2 43 1976 .................... 4,901.8 19.4 5.0 5.4 31 866.8 41 1977 .................... 5,510.8 19.0 4.7 5.6 30 928.7 40 East Asia and Pacific 1971 ., 2,307.7 21.2 5.5 5.6 31 317.2 39 1972 ................... 3,297.0 20.1 5.6 5.8 29 407.3 37 1973 ................... 3,749.9 20.3 5.7 6.8 26 333.9 32 1974 ................... 7,621.3 15.8 5.0 7.7 16 362.0 20 1975 .. 7,444.7 12.9 3.8 8.1 11 431.4 16 1976 . . . .... 10,311.8 13.9 4.5 7.8 12 328.7 15 1977 . . .... 8,558.9 14.4 4.0 7.6 14 409.6 18 Latin America and the Caribbean 1971 ., .... 4,961.8 13.2 3.5 7.0 16 263.3 20 1972 . , . .... 7,076.5 13.0 3.5 6.9 16 263.6 19 1973. .... 9,477.3 13.5 4.1 8.2 10 250.1 12 1974 ...... 12,640.2 12.3 3.7 9.2 5 250.7 7 1975 . 13,378.2 10.0 3.1 8.4 8 258.9 10 1976 ....................... 20,104.1 9.8 3.1 7.5 11 256.0 12 1977 ...................... 21,364.6 9.7 2.8 7.8 9 241.7 10 North Africa and Middle East 1971 ............-.-........ 2,784.6 12.5 3.5 5.4 23 193.7 28 1972 .. , , 3,311.3 14.6 3.5 5.1 26 193.7 30 1973 ...,,, 6,064.6 14.8 4.6 7.2 16 189.1 19 1974 .. 5,395.4 16.5 4.5 5.8 25 269.6 29 1975 .,,,,,,,,,,,,,,,,,,,, 10,875.2 14.9 4.7 6.1 23 232.9 25 1976 . 10,794.0 14.6 4.0 6.3 21 221.5 23 1977 .................... 15,518.2 13.5 3.9 6.6 19 251.3 20 South Asia 1971 .................... 1,723.2 32.8 7.1 2.6 58 346.0 65 1972 .................... 1,796.7 31.3 7.6 2.1 61 395.5 68 1973 .................... 2,719.9 32.0 7.4 2.5 58 460.8 64 1974 .....,..,,... 5,349.4 27.3 7.1 2.6 54 575.1 59 1975 ................... 4,366.8 32.0 8.1 2.4 60 1,029.3 68 1976 ................... 3,397.0 28.5 7.3 3.5 50 817.1 60 1977 ................... 4,134.0 34.2 8.0 2.7 60 976.1 67 More advanced Mediterranean countries 1971 . ............. 2,645.6 18.6 6.8 6.0 25 37.4 26 1972 , 3,065.2 18.4 6.7 5.7 27 37.5 28 1973 .................... 2,837.0 18.9 8.2 6.4 26 123.3 29 1974 .................... 4,883.1 16.5 6.4 8.0 16 94.4 17 1975 .................... 4,765.1 15.9 6.3 7.7 15 440.4 22 1976 .................... 6,515.0 14.7 5.2 7.1 16 543.4 23 1977 .................... 5,340.9 12.1 4.4 7.4 14 644.0 23 96 developing countries 1971 .................... 15,846.4 18.0 5.0 5.6 27 1,533.6 34 1972 .................. .. 20,445.5 17.6 4.9 5.6 27 1,924.3 34 1973 . 28,824.4 17.9 5.4 6.7 23 1,872.9 27 1974 ................... 40,260.5 16.8 5.1 7.0 21 2,366.4 25 1975 . 45,315.7 15.5 4.6 6.9 20 3,366.1 26 1976 ................... 56,023.7 14.0 4.2 6.8 18 3,033.5 22 1977 ................... 60,427.4 14.1 3.9 6.9 18 3,451.4 22 Note: Information on the sources, definitions, and interpretation of the data, and a list of the countries included are given in the "General Notes to Annex Tables." Source: World Bank and OECD. Foreign and International Bond Issues, by Market and Country of Borrower Entity, 1976-78 and First Half 1979 Table 9 ; (US$ millions) Foreign and international bond issues('): years and markets 1976 1977 1978 First half 1979 (P) United Other Inter- United Other Inter- United Other Inter- United Other Inter- Category of borrower entity(2) States national national States national national States national national States national national Borrowing country market markets markets Total market markets markets Total market markets markets Total market markets markets Total Industrialized countries Australia . ............... 415.0 39.0 602.2 1,056.2 225.0 83.7 714.9 1,023.6 250.0 739.6 476.9 1,466.5 - 298.2 110.0 408.2 Austriau.i. . 50.0 337.5 318.4 705.9 100.0 551.3 781.5 1,432.8 - 740.4 489.7 1,230.1 - 421.0 155.8 576.8 Belgium .. 19.2 114.7 133.9 58.0 147.4 33.9 239.3 - 17.2 - 17.2 - - 29.2 29.2 Canada . 5,716.4 368.7 3,004.9 9,090.0 2,982.3 446.2 1,945.3 5,373.8 3,226.2 797.4 828.4 4,852.0 1,054.5 626.6 938.5 2,619.6 Denmark - 498.3 359.9 858.2 75.0 385.0 339.0 799.0 - 557.3 374.3 931.6 - 242.9 148.0 390.9 Finland... . 60.0 178.4 174.3 412.7 122.1 125.5 148.5 396.1 228.8 442.3 334.1 1,005.2 100.0 149.4 198.1 447.5 France 630.3 870.9 1,315.7 2,816.9 166.6 626.6 1,113.1 1,906.3 119.9 399.7 774.6 1,294.2 - 195.3 741.1 936.4 Germany, Federal Republic of - 234.9 138.9 373.8 2.9 46.8 240.4 290.1 - 20.8 371.7 392.5 - 65.5 351.9 417.4 Iceland . .- - 33.9 33.9 22.5 9.6 40.9 73.0 4.0 20.7 - 24.7 - - 10.0 10.0 Ireland . .- 20.2 38.4 58.6 - 56.6 30.0 86.6 - 83.3 - 83.3 - - 39.3 39.3 Italy . .- - 85.0 85.0 - 69.6 230.0 299.6 - 90.4 135.0 225.4 - 35.8 150.3 186.1 Japan 293.2 558.9 1,155.8 2,007.9 350.0 383.9 1,194.6 1,928.5 120.0 1,167.4 1,499.6 2,787.0 - 1,180.6 815.7 1,996.3 Liechtenstein - - - - - - - - - 13.1 - 13.1 - - - Luxembourg - 32.7 132.9 165.6 - 126.1 455.2 581.3 30.0 150.3 217.2 397,5 - - - - Netherlands . . 28.0 143.0 325.4 496.4 10,0 92.9 409.6 512.5 - 7.6 195.0 202.6 - 209.5 126.9 336.4 New Zealand . .- 132.7 280.3 413.0 100.0 304.7 139.7 544.4 36.4 157.5 425.4 619.3 - 71.8 54.1 125.9 Norway 208.0 450.3 786.7 1,445.0 315.0 855.6 1,390.8 2,561.4 485.0 1,021.8 1,120.5 2,627.3 150.0 423.3 638.4 1,211.7 South Africa . - 59.5 25.0 84.5 - - 33.2 33,2 - 308.8 143.9 452.7 - 104.5 10.8 115.3 Sweden . .- 522.4 587.7 1,110.1 361.2 336.9 865.1 1,563.2 125.0 444.4 241.9 811.3 300.0 327.0 274.8 901.8 Switzerland. .- - 192.2 192.2 - - 22.5 22.5 - - 80.0 80.0 - - 199.9 199.9 United Kingdom . .268.0 223.0 751.3 1,242.3 43.6 9.8 1,583.5 1,636.9 605.8 60.8 776.2 1,442.8 - 238.1 513.0 751.1 United States . .- 27.6 405.0 432.6 - 223.5 1,298.3 1,521.8 - 374.3 1,322.9 1,697.2 - 156.7 1,830.1 1,986.8 Total 7,668.9 4,717.2 10,828.6 23,214.7 4,934.2 4,881.7 13,010.0 22,825.9 5,231.1 7,615.1 9,807.3 22,653.5 1,604.5 4,746.2 7,335.9 13,686.6 Developing countries Algeria - - 147.1 147.1 - - 215.2 215.2 - 170.7 558.1 728.8 - 52.8 105.0 157.8 Argentina . - - - - - - 43.0 43.0 - 67.7 198.7 266.4 - 66.6 212.4 279.0 Bolivia .- - - - - - 15.0 15.0 - - - - - - - - Brazil .- 34.4 158.9 193.3 85.0 167.3 603.5 855.8 - 395.4 540.7 936.1 - 149.6 140.4 290.0 Chile .- - - - - - - - - - 50.0 50.0 - 48.5 - 48.5 China, Republic of.- - - - - - - - - - 20.0 20.0 - 29.5 - 29.5 Costa Rica .- - - - - - - - - - 20.0 20.0 - - - - (continued) ~ Foreign and International Bond Issues, by Market and Country of Borrower Entity, 1976-78 and First Half 1979 (continued) Table 9 t (US$ millions) Foreign and international bond issues t1): years and markets 1976 1977 1978 First half 1979 (P) United Other Inter- United Other Inter- United Other Inter- United Other Inter. Category of borrower entity(2) States national national States national national States national national States national national Borrowing country market markets markets Total market markets markets Total market markets markets Total market markets markets Total Developing countries (continued) Ecuador ...................... - - - - - 7.9 - 7.9 - - 62.0 62.0 - - Egypt, Arab Republic of ............. - - - - - - - - - 25.0 25.0 - - - El Salvador ...................... - - - - - - - - - - 25.0 25.0 - - - - Hong Kong ...................... - - - - - - 128.3 128.3 - - - - - Indonesia ....................... - - - - - - - - - 50.0 54.2 104.2 - 37.3 - 37.3 Iran ...................... - - 30.0 30.0 - - 81.0 81.0 - 43.2 25.4 68.6 - - - - Israel ...................... 320.5 - 30.0 350.5 280.0 - 60.0 340.0 165.0 - 120.0 285.0 - - 185.0 185.0 Ivory Coast ...................... - - 10.2 10.2 - - - - - - - - - - - - Korea, Republic of ................. - - 74.2 74.2 - - 71.5 71.5 - 56.0 - 56.0 - - 43.6 43.6 Kuwait ......................61.6 61.6 - - - - Malaysia ...................... - - 10.2 10.2 - - 43.0 43.0 - 119.7 20.0 139.7 - 72.8 30.0 102.8 Mexico ...................... - 151.6 276.3 427.9 200.0 391.1 756.7 1,347.8 90.0 251.6 345.9 687.5 65.0 - 100.0 165.0 Morocco ...................... - - 44.9 44.9 - - 28.3 28.3 - - 91.5 91.5 - - - - Panama ...................... - - 13.9 13.9 2.0 - 25.0 27.0 - 43.2 171.9 215.1 - 60.7 50.0 110.7 Papua New Guinea. .......... . - - - - - - 25.0 25.0 - - - - - - - Philippines ...................... 367.2 - - 367.2 - 36.6 92.9 129.5 - 141.2 74.8 216.0 - 78.4 - 78.4 Portugal ....................... - - - - - - 50.0 50.0 - - - - - - - - Saudi Arabia ...................... - - - - - 9.9 9.9 - - - - - 29.0 - 29.0 Singapore ...................... - 33.9 141.2 175.1 - 97.4 57.2 154.6 - - 25.0 25.0 - - 25.0 25.0 Spain ...................... - 52.4 191.5 243.9 - 340.9 189.9 530.8 25.0 156.8 141.9 323.7 - 228.6 124.1 352.7 Thailand ...................... - - - - - - - - - 44.2 24.6 68.8 - - 85.0 85.0 Trinidad and Tobago ............... - - - - - - - - 40.0 73.1 36.9 150.0 - - - - Tunisia ...................... - - 49.1 49.1 - - 10.0 10.0 - - 25.7 25.7 - - - - Turkey ...................... - - 23.8 23.8 - - - - - - - - - - - - United Arab Emirates ............... - - - - - - 42.2 42.2 - - - - - - - - Venezuela ...................... - - - - 250.0 82.9 104.7 437.6 - 307.3 382.3 689.6 - - 153.6 153.6 Yugoslavia ...................... - - 90.4 90.4 - 8.3 121.0 129.3 - 46.7 80.0 126.7 - 48.5 50.0 98.5 Total ....................... 687.7 272.3 1,291.7 2,251.7 817.0 1,132.4 2,773,3 4,722.7 320.0 1,966.8 3,181.2 5,468.0 65.0 902,3 1,304.1 2,271.4 Centrally planned countries Hungary ..................... - - 25.0 25.0 - - 174.6 174.6 - - - - - - -- Poland ..................... - - 47.0 47.0 - 6.3 74.6 80.9 - - 30.0 30.0 - - - - Total ..................... - - 72.0 72.0 - 6.3 249.2 255.5 - 30.0 30.0 - - - - t~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' Cs International organizations African Development Bank (AfDB).. - - - - - 17.5 17.5 - - 40.0 40.0 - 52.4 52.4 . Asian Development Bank (AsDB) ... 175.0 258.6 78.2 511.8 - - 42.2 42.2 - 106.6 197.9 304.5 - 59.8 70.0 129.8 Central American Bank for a Economic Integration (CABEI) ....- - - - - - - - - - 12.5 - 20.0 32.5 Council of Europe ................. - 56.8 68.1 124.9 - - 44.6 44.6 - 103.5 126.5 230.0 - 57.9 53.8 111.7 European Atomic Energy Community (Euratom) ....................... - - - - - - 105.8 105.8 - 44.4 - 44.4 - 68.0 81.4 149.4 European Coal and Steel Community (ECSC) ................ 325.0 270.4 461.7 1,057.1 117.0 138.3 400.2 655.5 30.0 333.0 492.2 855.2 - 102.6 90.8 193.4 European Economic Community (EEC) 100.0 - 995.3 1,095.3 100.0 - 500.0 600.0 - - - - - - European Investment Bank (E IB) .... 175.0 119.0 532.6 826.6 250.0 372.6 462.4 1,085.0 525.0 390.3 1,012.6 1,927.9 550.0 78.5 519.5 1,148.0 International Bank for Reconstruction and Development (IBRD) ........... 1,250.0 1,974.8 893.6 4,118.4 1,350.0 2,193.7 725.0 4,268.7 - 3,795.8 700.0 4,495.8 - 192.6 300.0 492.6 Inter-American Development Bank (IDB) ....................... 250.0 238.0 33.7 521.7 100.0 126.8 73.9 300.7 50.0 89.3 74.0 213.3 100.0 50.6 52.4 203.0 Nordic Investment Bank ........... - - - - - 40.0 40.0 - - 35.0 35.0 - 17.2 58.2 75.4 Total ............... ........ 2,275.0 2,917.6 3,063.2 8,255.8 1,917.0 2,831.4 2,411.6 7,160.0 605.0 4,862.9 2,678.2 8,146.1 662.5 627.2 1,298.5 2,588.2 Others Eurofima (3) ....................... - 122.1 30.0 152.1 - 90.2 70.0 160.2 - 141.3 151.6 292.9 - 41.7 102.4 144.1 Unallocated borrowers (4) ....... . - 282.5 82.3 364.8 - - 970.0 970.0 5.8 48.1 24.0 77.9 16.3 - 100.6 116.9 Total ..... - 404.6 112.3 516.9 - 90.2 1,040.0 1,130.2 5.8 189.4 175.6 370.8 16.3 41.7 203.0 261.0 Recapitulation Industrialized countries ......... ... 7,668.9 4,717.2 10,828.6 23,214.7 4,934.2 4,881.7 13,010.0 22,825.9 5,231.1 7,615.1 9,807.3 22,653.5 1,604.5 4,746.2 7,335.9 13,686.6 Developing countries ............. 687.7 272.3 1,291.7 2,251.7 817.0 1,132.4 2,773.3 4,722.7 320.0 1,966.8 3,181.2 5,468.0 65.0 902.3 1,304.1 2,271.4 Centrally planned countries .......... - - 72.0 72.0 - 6.3 249.2 255.5 - - 30.0 30.0 - - - - International organizations .......... 2,275.0 2,917.6 3,063.2 8,255.8 1,917.0 2,831.4 2,411.6 7,160.0 605.0 4,862.9 2,678.2 8,146.1 662.5 627.2 1,298.5 2,588.2 Others ....................... - 404.6 112.3 516.9 - 90.2 1,040.0 1,130.2 5.8 189.4 175.6 370.8 16.3 41.7 203.0 261.0 GRAND TOTAL ....................... 10,631.6 8,311.7 15,367.8 34,311.1 7,668.2 8,942.0 19,484.1 36,094.3 6,161.9 14,634.2 15,872.3 36,668.4 2,348.3 6,317.4 10,141.5 18,807.2 O1) Includes both public offerings and private placements. (5) Borrowing categories are categories as established by the World Banh's Capital Markets System. (3) Societe Europeenne pour le Financeirent de Materiel Ferroviaire. (') Includes the following corporations: Adela Investment Co., S.A., Intermoselle Fiiaice, S.A., Intershop Overseas Finance (Curacao) N.V., Megal Finance Co., Ltd., Private Investment Co., for Asia, S.A., Scandimavian Airlires Systemn (SAS), Shell International Finance N.V., Societe Financitre Europeenne, Trans-Austria Gasline Finance Co., Ltd. (P) Preliminary. 146 Statistical Annex Initial Offering Yields of Publicly Offered Foreign and Table 10 International Bonds, 1976 to Second Quarter 1979 (Average of straight-debt issues weighted by amount of loan) Initial offering yields Years Quarters 1976 1977 1978 1978 1978 1978 1978 1979 1979 IlH III IV I II Issued in US market by industrialized countries ................ 8.82 8.39 8.90 8.47 9.01 9.12 9.21 9.91 9.83 Canada ........................... 9.00 8.54 8.95 8.42 9.40 9.23 9.21 9.92 10.13 Other industrialized .................... 8.61 8.24 8.81 8.64 8.86 8.86 - 9.88 9.63 Developing countries ................... 8.21 8.58 - - - - - - - Centrally planned countries.- - - - - - - - - International organizations(') ............ 8.45 7.89 9.07 9.00 - 9.13 - 9.74 10.02 World Bank ........................... 8.29 7.70 - - - - - - - Other international organizations ....... 8.65 8.36 9.07 9.00 - 9.13 - 9.74 10.02 Others(2).- - - - - - - - - Issued in other national markets by industrialized countries ........... .... 6.52 5.89 5.41 5.47 5.45 4.97 5.53 4.47 6.45 United States ......................... - 5.43 3.82 4.12 - 3.83 3.50 5.49 - Other industrialized .................... 6.52 5.90 5.50 5.54 5.45 5.20 5.69 4.34 6.45 Developing countries .......... ........ 9.06 6.53 6.29 6.35 6.52 6.09 6.08 6.65 5.47 Centrally planned countries .............. - - - - - - - - - International organizations() ............ 7.57 6.71 6.18 5.61 7.24 5.61 7.25 6.23 6.61 World Bank ........................... 7.40 6.30 5.68 5.79 - 5.53 6.22 - 4.63 Other international organizations ........ 7.75 7.52 6.94 5.32 7.24 6.02 8.00 6.23 7.08 Others(2) ............................ 6.83 4.53 4.94 3.80 6.62 3.63 - 3.67 - Issued in international markets by industrialized countries ................ 8.63 7.63 7.28 7.34 7.64 6.72 6.81 8.58 9.21 United States ......................... 9.24 7.81 8.13 9.47 8.26 8.05 6.16 9.18 9.62 Other industrialized .................... 8.61 7.61 7.11 6.99 7.56 6.16 6.98 8.32 9.08 Developing countries ................... 8.88 7.82 6.97 6.83 6.61 7.72 7.15 7.36 7.72 Centrally planned countries .............. 8.60 7.01 - - - - - - - International organizations(') ............ 7.98 7.64 7.32 7.48 6.96 7.53 6.76 8.20 8.38 World Bank .......................... - 6.16 - - - - - - - Other international organizations ........ 7.98 7.72 7.32 7.48 6.96 7.53 6.76 8.20 8.38 Others(2) ........................... 8.42 7.78 6.78 6.78 - - - 6.71 6.49 ') Category includes: African Development Bank (AfDB), Asian Development Bank (AsDB), Council of Europe, European Atomic Energy Community (Euratom), European Coal and Steel Community(ECSC), European Economic Community (EEC), European Investment Bank (EIB), International Bank for Reconstruction and Development (IBRD), Inter-American Development Bank (IDB), Nordic Investment Bank. (M) Category includes: Adela Investment Co., S.A., Intermoselle Finance, S.A., Megal Finance Co., Ltd., Scandinavian Airlines System (SAS), Shell International Finance, N.V., Societe Europeenne pour le Financement de Materiel Ferroviaire (Eurofima), Societe Financiere Europeenne, Trans- Austria Gasline Finance Co. Ltd. Statistical Annex 147 Publicized Eurocurrency Credits by Country of Borrower Entity, Table 11 1976-78 and First Half of 1979 (US$ millions) Publicized Eurocurrency credits: years Category of borrower entity(') Borrowing country 1976 1977 1978 First half 1979(P) Industrialized countries Australia ...................... .............. 20.0 49.0 799.2 203.7 Austria ........................ - 154.4 150.0 - Belgium ................ .................. ....... - - 40.0 - Canada ................... ................ 935.0 512.0 9,580.6 705.0 Denmark ....................... ............ 802.7 873.2 2,334.6 390.0 Finland ................................... 300.0 314.0 550.5 - France ................................... 733.8 1,864.8 2,495.0 1,200.0 Iceland ............ .......... ............. - 71.0 60.0 95.0 Ireland ................................... 460.5 508.5 676.2 - Italy ......................... .......... 20.0 778.6 2,567.0 1,446.9 Japan . .......................................... 368.4 67.5 86.2 - Netherlands ......... ......... . ................ 99.0 - 565.0 312.5 New Zealand ........ ........................... 200.0 538.8 460.0 15.0 Norway ................................... 470.0 623.4 1,189.8 644.2 South Africa ........ ........................ 872.4 - - - Sweden ................................... 439.7 1,375.7 1,861.0 287.0 United Kingdom ....... ...... 2,179.0 2,476.2 4,721.7 422.6 United States .................. .......... ...... . 406.8 848.0 2,214.7 808.3 Total ................................... 8,307.3 11,055.1 30,351.5 6,530.2 Developing Countries Algeria .................................... 662.7 427.0 1,926.1 952.3 Antigua .................................... - - 10.0 - Argentina ............ ........................ 895.5 828.1 1,273.0 821.5 Bahamas .................................... - 10.0 - Bahrain .................................... - 20.5 60.0 Barbados ............. ........................ - - 10.0 - Bolivia ................................... 161.0 100.0 227.0 47.0 Botswana .......................................45.0 - Brazil. ................................... 3,288.3 2,341.1 4,902.9 2,379.0 Burma ................................... - 38.8 10.0 8.5 Cameroon ................................... 67.0 23.0 9.0 - Chile .................................... 125.0 226.5 1,145.0 31.0 China, Republic of ................................... 178.0 480.5 161.9 99.7 Colombia ................................... 135.0 43.0 85.0 117.5 Congo, People's Republic of the .........................0.0 - - Costa Rica ................................... 40.0 54.0 215.0 132.0 Cyprus ................................... - 30.0 50.0 - Dominican Republic .......... .............- ...... 60.0 185.0 Ecuador .................................... 87.0 428.0 252.1 567.0 Egypt, Arab Republic of ................................ 117.5 250.0 53.3 5.0 El Salvador ................... ................. 7.2 - - - Fiji ..................................... - 10.0 - - Gabon .................................... 118.8 56.0 86.0 100.0 Ghana .................................... - - 21.5 - Greece .................................... 324.4 222.0 487.5 15.0 Guatemala .............................. ...... 15.0 - - - Guinea .................................... - - 15.0 Guyana .... ................................ 4.0 - - - Honduras ............................. ....... 10.0 16.0 - 10.0 Hong Kong .................................... 100.0 16.3 629.0 642.0 India .................................... - 50.0 55.0 - Indonesia .................... ................ 509.6 87.7 1,577.3 394.0 Iran .................................... 931.9 1,760.5 1,178.1 Iraq ..................................... - - 180.0 - Ivory Coast .................................... 147.5 273.0 159.4 45.4 Jamaica .................................... 15.0 32.0 - 126.0 Jordan .................................... 5.0 196.0 100.0 98.0 Korea, Republic of .................................... 979.6 796.0 1,687.0 651.2 Kuwait .................................... 20.0 46.0 186.0 - Lebanon .................................... - - 150.0 (continued) 148 Statistical Annex Publicized Eurocurrency Credits by Country of Borrower Entity, 1976-78 and First Half of 1979 (continued) (US$ millions) Publicized Eurocurrency credits: years Category of borrower entityC') Borrowing country 1976 1977 1978 First half 1979(P) Developing countries (continued) Liberia .................................. ........... - 30.0 60.0 - M adagascar 3.......................................... 3.0 29.6 15.0 M alaw i ..... ...................... .......... - Malaysia .............................. 200.0 130.0 1,076.8 100.0 Mauritania ............... ...................... - - 18.0 - Mauritius ..................................... - 37.0 - 50.0 Mexico ................ .......... 2,139.5 2,895.4 6,332.1 2,741.0 Morocco ......................... 408.6 702.1 620.0 200.0 Nauru, Republic of . . .................................. - 25.0 25.0 - Nicaragua .....................................0.0 - - N iger ..................................... 15.0 - - 7.0 Nigeria .................................... - - 1,750.0 434.1 Oman ..................................... .13.0 - - Pakistan ..................................... - 27.0 6.0 54.7 Panama ........... ............. 151.9 147.0 553.5 135.0 Papua New Guinea ............ . .............. - 25.0 60.0 - Peru ........................... 350.0 144.4 - - Philippines ........................ 873.2 704.7 1,837.0 887.0 Portugal ......................... 50.0 87.0 614.4 495.0 Puerto Rico ............ ........... 265.0 Qatar. ............................................. - 350.0 275.0 - Romania ........... .......................... - 125.0 725.3 180.0 Saudi Arabia ....... .......... 36.6 126.8 179.9 185.2 Senegal ...................................... . - 25.0 60.0 - Singapore ........................ 30.0 - 116.6 - Spain .... ......................... 2,024.2 1,880.0 2,190.2 953.5 Sri Lanka ............................. ............... - - - 50.0 Sudan . .............................. 19.0 9.5 - Swaziland ..................................... 28.0 - Tanzania ............ ....................... ......... - - 12.0 Thailand ......................... 100.0 183.4 213.0 - Trinidad and Tobago . . ................................ - 150.0 - - Tunisia .......................... .145.0 180.0 100.0 Turkey .......................... 170.0 170.0 350.0 125.0 United Arab Emirates . .................. 187.0 1,036.8 681.2 111.4 Uruguay ............. ........... 81.5 60.0 230.0 - Venezuela ... ..................... 1,129.0 1,650.1 1,989.6 1,052.2 Viet Nam ..................................... . - 74.1 42.7 - Yemen Arab Republic . . ................. - - 17.0 - Yugoslavia ........................ 83.5 371.4 664.8 503.2 Total ........................... 17,259.0 20,270.2 37,942.3 15,818.4 Centrally planned countries and organizations Bulgaria ..................................... 240.0 245.0 239.0 100.0 China, People's Repubiic of ............................ - - - 3,325.0 Cuba ..................................... 140.5 10.0 58.4 107.5 Czechoslovakia ..................................... 200.0 150.0 150.0 200.0 German Democratic Republic .......................... 260.0 692.0 782.0 30.0 Hungary ......................... ............ 150.0 350.0 515.0 300.0 International Investment Bank ......................... 600.0 1,100.0 500.0 175.0 Poland ...................................... 498.9 19.0 374.0 570.0 USSR ..................................... 282.0 - 400.0 250.0 Total ..................................... 2,371.4 2,566.0 3,018.4 5,057.5 International organizations African Development Bank (AfDB) ............ - ....... 40.0 125.0 150.0 125.0 Central American BankforEconomic Integration(CABEI) ... 37.0 22.0 31.7 20.0 Corporaci6n Andina de Fomento .......................0.0 - - European Coal and Steel Community (ECSC) ............. - - - 15.0 European Economic Community (EEC) ................ 300.0 - - - Total ..................................... 377.0 197.0 181.7 160.0 Statistical Annex 149 Table 11 Publicized Eurocurrency credits: years Category of borrower entity()1 Borrowing country 1976 1977 1978 First half 1979(P) Others Unallocated borrowers(2'.. . ......... 388.6 97.0 165.0 30.0 Total .................................... 388.6 97.0 165.0 30.0 Recapitulation Industrialized countries ............................... 8,307.3 11,055.1 30,351.5 6,530.2 Developing countries .................................. 17,259.0 20,270.2 37,942.3 15,818.4 Centrally planned countries and organizations ..... ...... 2,371.4 2,566.0 3,018.4 5,057.5 International organizations .............. .............. 377.0 197.0 181.7 160.0 Others ........... ......................... 388.6 97.0 165.0 30.0 GRAND TOTAL .................................... 28,703.3 34,185.3 71,658.9 27,596.1 (°) Borrowing categories are categories as established by the World Bank's Capital Markets System. (2) Includes the following corporations: Adela International Finance Company, S.A.; Alufinance and Trade Limited; Blue Star, Ellerman Lines and Portline; Elf Norge, A.S. and six other companies; Explosivos Total Aquitaine S.A.; Gulf Aviation Co., Ltd.; Gulf Helicopters; Jordanian Syrian Land Transport Company; Offshore Supply Association. (P)Preliminary. 151 Bank Appendices Financial Statements Page Appendix A Balance Sheet .. . ........ .. 152 Appendix B Statement of Income. . . ...... I ... 154 Statement of Accumulated Net Income .154 Statement of Changes in General Reserve .154 Appendix C Statement of Changes in Financial Position .155 Appendix D Summary Statement of Loans. 156 Appendix E Summary Statement of Borrowings .159 Appendix F Statement of Subscriptions to Capital Stock and Voting Power . ... .. ............... 160 Appendix G Notes to Financial Statements . 162 Report of Independent Accountants . . .............. 165 152 Bank Appendices Balance Sheet June 30, 1979 and June 30, 1978 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G Assets 1979 1978 DUE FROM BANKS Unrestricted currencies (including interest-bearing demand deposits $31,078-1979, $70,193-1978) ...... ............................ $ 175,689 $ 200,984 Currencies subject to restrictions-Note B ...... ... ...................... 123,976 74,131 $ 299,665 275,115 INVESTMENTS-Note C Obligations of governments and their instrumentalities $ 5,066,746 6,957,820 Time deposits and other obligations of banks and financial institutions .4,640,475 1,747,937 9,707,221 8,705,757 RECEIVABLE ON ACCOUNT OF SUBSCRIBED CAPITAL- Subject to restrictions-Note B Non-negotiable, non-interest-bearing demand obligations .$ 541,718 490,118 Amounts required to maintain value of currency holdings. 2,289 363 544,007 490,481 RECEIVABLES-OTHER Sales of investment securities ....... ...... .. ..... $ 373,404 363 From purchasers on account of effective loans agreed to be sold (including undisbursed balance $40,701-1979, $55,244-1978) . .53,244 66,161 Accrued income on loans ... ............. ........ 441,262 365,594 Accrued interest on investments ...... ................ 120,647 109,023 988,557 541,141 LOANS (See Appendix D) ..... .... ...... .............................. $44,660,124 37,796,228 Less-Loans approved but not yet effective .......... .................... 5,522,390 4,731,371 Effective loans (including undisbursed balance $16,263,687-1979, $13,705,948-1978) ...................... 39,137,734 33,064,857 OTHER ASSETS Land and buildings-Less accumulated depreciation ($13,199-1979, $12,003-1978) ........ ............................ $ 80,994 67,616 Unamortized issuance costs of borrowings .................. .............. 122,157 100,486 Notional amounts required to maintain value of currency holdings-Note B.. . 460,399 372,600 Maintenance of value of capital subscriptions outstanding on loans, not yet due-Note B .......................... 5,998 2,891 Miscellaneous ................ ... .............................. 65,944 69,730 735,492 613,323 $51,412,676 $43,690,674 Financial Statements 153 Appendix A International Bank for Reconstruction and Development Liabilities, Capital and Reserves 1979 1978 LIABILITIES Accrued charges on borrowings... .. . ............. ........... .. $ 692,719 $ 581,122 Amounts required to maintain value of currency holdings-Note B ........... 3,262 3,864 Notional amounts required to maintain value of currency holdings-Note B. .. 142,271 115,811 Accounts payable and other liabilities ........... ............. . . 52,253 27,722 Payable for investment securities purchased ......... ........... .... 506,297 50,162 Due to International Development Association-Note E ........ ............ 792,278 734,503 Undisbursed balance of effective loans (See Appendix D) Held by Bank . .. . . ............... ..... ............. ..... $16,263,687 13,705,948 Agreed to be sold ..... ............. ...... ..... ........... 40,701 55,244 16,304,388 13,761,192 Borrowings (See Appendix E) .. ............... . .......... $26,741,324 22,602,497 Less-Receivable under contracts .460,830 Principal outstanding ............ .... ........ ............ $26,280,494 22.602,497 Less-Net unamortized discounts and premiums ...... . . ................. 27,691 21,060 26,252,803 22,581,437 CAPITAL AND RESERVES Capital stock (See Appendix F and Appendix G-Note B) Authorized capital (SDR 34,000,000) Subscribed capital (SDR 28,990,200-1979, SDR 26,659,700-1978) .$37,429,247 33,045,498 Less-Uncalled portion of subscriptions (SDR 26,091,180-1979, SDR 23,993,730-1978) ......... ......... ........ 33,686,322 29,740,948 3,742,925 3,304,550 Payments on account of pending subscriptions (See Appendix F) 18,823 46,911 Special reserve-Note D ....... .. .... ..................... 292,538 292,538 General reserve (See Appendix B and Appendix G-Note D) 2,205,577 1,952,751 Accumulated net income (See Appendix B) ........... 406,542 238,111 $51,412,676 $43,690,674 154 Bank Appendices Statement of Income Appendix B International Bank for Reconstruction and Development For the fiscal years ended June 30, 1979 and June 30, 1978 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G July 1-June 30 1978/79 1977/78 Income Income from loans: Interest ........ $1,543,471 $1,218,443 Commitment charges .. . . .. ... 125,371 106,149 Income from investments-Notes C and G .. . 743,940 613,560 Other income-Note G. . 11,788 8,414 Total Income. . . $2,424,570 $1,946,566 Expenses Interest on borrowings . $1,817,395 $1,541,529 Administrative expenses-Notes F and G . . .... 172,027 148,126 Bond issuance and other financial expenses. 28,606 18,726 Discount on sales of loans - 74 Total Expenses $2,018,028 $1,708,455 Net Income-Notes A and D . . $ 406,542 $ 238,111 Statement of Accumulated Net Income For the fiscal years ended June 30, 1979 and June 30, 1978 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G July I-June 30 1978/79 1977/78 Accumulated net income at beginning of fiscal year $ 238,111 $ 209,450 Allocation to General Reserve . . . (138,111) (109,450) Transfer to Internationa! Development Association. . (100,000) (100,000) Net income for fiscal year ... 406,542 238,111 Accumulated net income at end of fiscal year $ 406,542 $ 238,111 Statement of Changes in General Reserve For the fiscal years ended June 30, 1979 and June 30, 1978 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G July 1-June 30 1978/79 1977/78 Balance at beginning of fiscal year . $1,952,751 $1,733,102 Allocation of portion of accumulated net income.. . 138,111 109,450 Translation adjustments-Notes A and D, 114,715 110,199 Balance at end of fiscal year. ... $2,205,577 $1,952,751 Financial Statements 155 Statement of Changes in Appendix C International Bank for Financial Position ~ ~~~~~~~~~~~~Reconstruction and Development For the fiscal years ended June 30, 1979 and June 30, 1978 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G July 1-June 30 1978/79 1977/78 Funds Provided Operations: Net income (See Appendix B). $ 406,542 $ 238,111 Items not requiring or providing cash: Accrued income on loans and investments . . . . (87,292) (119,151) Accrued charges on borrowings and administrative expenses . 130,738 118,892 Depreciation. . . .. ... 1,428 1,428 Amortization of discounts, premiums and bond issuance expenses . . 18,283 18,464 Cash provided by operations. $ 469,699 $ 257,744 Borrowings (See Appendix E) . . . 4,629,427 3,618,741 Adjustments of borrowings outstanding as a result of currency depreciations and appreciations (See Appendix E) 899,049 1,971,461 Repayments of loans to the Bank(1 . 842,565 830,889 Sales of loans . . . . .. . . . 66,872 161,622 Increase (decrease) in amounts payable for investment securities traded ... . 456,135 (13,651) Capital subscriptions and maintenance of value adjustments . 187,972 83,714 Increase in capital subscriptions as a result of depreciation of the United States dollar in terms of the SDR. . . 146,430 88,461 Translation adjustments-Notes A and D 114,715 110,199 Other . 35,405 107,521 Total Funds Provided $7,848,269 $7,216,701 Funds Used Disbursements on loans . . $3,610,736 $2,817,418 Adjustments of loans outstanding as a result of currency depreciations and appreciations 815,465 1,819,156 Retirement of borrowings (See Appendix E) . . . . 1,850,479 1,465,253 Increase (decrease) in amounts receivable for investment securities traded 373,041 (155) Payments on transfers to International Development Association 42,225 14,125 Other 180,154 142.840 Total Funds Used . . $6,872,100 $6,258,637 Increase in Unrestricted Currencies and Investments . . ....................... $ 976,169 $ 958,064 i' The dollar equivalents of loan pirnc pal repayments are recorded at the average of the historical rates of exchaiige prevaaiing at the time the ftirids were orignially disbursed. The difference between the average historical rates of excharige arid the marker rates Is irlCIded 1i Adf:ust ceits of Loans Outstanding as a Result of Currency DepreciatiDnrs arsd Appreciations. The dollar equivalent of these loao or ncipal repaylierlts at the maret rles of excharixe afi effect osl the dates of iepayvoerni has been calculated to he $952.415 x00 '$888.095.000-197S) 156 Bank Appendices Summary Statement of Loans June 30, 1979 and June 30, 1978 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G June 30, 1979 Effective loans held by Bank Loans Percent of approved totalI effective Disbur sed Undisbarsed but not yet and non- Members liable as borrower or guarantorM' portion portion(') Total effectiveW3 effective loans Algeria .................. $ 247,124 $ 502,236 $ 749,360 $ 168.000 2.05 Argentina(4 471,973 455,205 927,178 96,000 2.29 Australia ... ............. 117,556 249 117,805 - .26 Austria ..._ .. ..... .. 22,477 - 22,477 - .05 Bahamas ... ........ .. .. 1,126 9,009 10,135 - .02 Bahamas, Barbados, Grenada, Guyana, Jamaica, Trinidad and Tobago, and United Kingdom(5)......... .. . 4,826 15,466 20,292 - .05 Bangladesh ...... ..... ..... 62,966 - 62,966 - .14 Barbados..................22 8,978 9,000 8,000 .04 Bolivia(4) .. 100,072 140,900 240,972 - .54 Botswana ... . ......52,703 33,092 85,795 - .19 Brazil ................. 2,095,748 1,622,235 3,717,983 674,000 9.83 Cameroon ... .. . .......... 134,864 77,943 212,807 65,000 .62 Chile. ..... .. ............ 209,962 56,722 266,684 - .60 China, Republic of ....... ...... 263,529 - 263,529 - .59 Colombia....-.... .......... 943,451 679,066 1,622,517 310,920 4.33 Congo, People's Republic ot the .. . ..... 42,939 14,078 57,017 - .13 Costa Rica......... ........ . 175,903 83,340 259,243 48,800 .69 Cyprus .................... 52,103 41,345 93,448 16,000 .25 Denmark...... ............. 9,380 - 9,380 - .02 Dominican Republic....... ........ 35,030 23,631 58,661 52,000 .25 Ecuador ................. . 85,692 102,446 188,138 58,000 .55 Egypt, Arab Republic oft.. .. ..... . 202,238 491,339 693,577 188,000 1.97 El Salvador......... ....... 81,114 76,959 158,073 23,500 .41 Ethiopia..... .............. 90,352 351 90,703 - .20 Fliji... ............ . . . 30,592 21,468 52,060 - .12 Finland.. ....... 64,733 - 64,733 - .14 Gabon .... ......... .. . 26,801 4,205 31,006 - .07 Ghana ................... 87,709 88,906 176,615 - .40 Ghana, Ivory Coast, and Togo(6)..._.. . 18,627 30,390 49,017 - .11 Greece .......... ...... .. 89,604 224,469 314,073 112,499 .96 Guatemala................96,908 79,254 176,162 72,000 .56 Guinea ........... .....95,693 - 95,693 - .21 Guyana ........ ......... 35,137 21,216 56,353 - .13 Honduras ...... .. .. ..... 147,140 69,414 216,554 34,500 .56 Iceland . .. ............ . 42,363 - 42,363 - .10 India... ............. 756,467 676,705 1,433,172 250,000 3.77 I ndonesia ................ . 724,032 1,181,425 1,905,457 627.000 5.67 Iran ......... .. ..... .. 716,747 102,393 819,140 - 1.83 Iraq ......102,114 2,412 104,526 - .23 I reland ......... ........ 111,762 24,380 136,142 - .31 Israel ..............., 115,416 41,512 156,928 - .35 Italy ....... ............, 18,846 - 18,846 - .04 Ivory Coast(7)................. 230,196 146,531 376,727 125,400 1.12 Jamaica ......... ... . 141,804 91,097 232,901 59,500 .66 Japan..................... 365,510 - 365,510 - .82 Jordan ............... ...- 35,000 35,000 15,000 .11 Kenya(38'....._ ....... ... 322,334 319,326 641,660 112,000 1.69 Kenya, Tanzania, and Uganda(6) ........ 208,248 7,529 215,777 - .48 Korea, Republic ot...........1,480,584 876,468 2,357,052 125,000 5.56 Lebanon ... ..........8,717 83,709 92,426 - .21 Financial Statements 157 Appendix D International Bank for Reconstruction and Development June 30, 1979 Effective loans held by Bank Loans Percent of ap proved total effective Disbursed Undisbursed but not yet and non- Members liable as borrower or guarantorO'~ portion portionW) Total e ffe ctive ~.effective loans Liberia ..............$ 58,957 $ 60,586 $ 119,543 $ -.27 Madagascar, .... .... . 32,995 4.898 37,893 -.08 Malawi. ... . .... 11,305 17,901 29,206 -.07 Malaysia ...... 501,571 500,098 1,001,669 30,900 2.31 Mauritius .......... ..... 27,341 40,932 68.279 - .15 Mexico ...... 1,958,233 997,921 2,956,154 467,000 7.67 Morocco. 497.806 343,7 11 841.517 299,00C 2.55 New Zealand ... 34,052 - 34,052 - .08 Nicaragua. . .. 99,434 40,652 140,086 - .31 Nigeria .. ... . .... .. 582,497 287.269 869,766 212,000 2.4 2 Norway . .... ....38.097 - 38,097 - .09 Oman ...~....8,949 15,484 24,433 .05 Pakistan . ...... . .. 481,922 87.595 569,517 - 1.28 Panama..... ... 131,660 81,808 213,468 34,000 .55 Papua New Guinea. .2,758 1 2,7 52 1 5,510 - .03 Paraguay ...... .....49,172 79,877 129,049 64.000 .43 Peru. .... .. . .....247,166 343,291 590,457 - ~ 1.32 Philippines ....... 726.127 1,145,147 1,871,274 41,000 4.28 Portugal- 62,890 209,219 272,109 155,0CC .96 Romania 563,294 484,404 0,047,698 184,421 2.76 Senegal. 43,166 43,453 86,619 7,000 .21 Sierra Leone..... .... .... 15,549 3,302 18,851 - .04 Singapore. ......... 138,877 11,915 1 50.7 92 - .34 Spain.......... ... 306,442 39,648 346,090 - .78 Sri Lanka ... . .. .. ... 41,115 2,103 43,218 - .10 Sudan..70,430 32,000 102,430 - .23 Swaziland........ ... .... 14,104 21.557 35,661 - 0 Syrian Arab Republic... 157,123 240,7 71 397,894 91,000 1.C9 Tanzania(5'~..... ..... .. 180,800 97,524 278,324 41.000 .72 Thailand . ... ..577,815 568,274 1,146.089 96.700 2.78 Togo.,.......3,889 - 3,889 - .01 Trinidad and Tobago....... .... . 59,901 10.221 70,122 18,600 .20 Tunisia .......239,278 200,897 440,175 98,900 1.21 Turkey. ......... .....915,630 594,450 1,510,080 255,000 3.95 Ugandait .... . ... . ... 2,016 143 2,159 -. .01 United Kingdom...... .. . .. 28,962 - 28.962 - .06 Uruguay .......8.. 8,055 23,007 111,062 26,500 .31 Venezuela 226,320 6.292 232,612 - .52 Yugoslavia........... 1,217,947 868,526 2,086,473 148.000 5.00 Zaire..... ...... ... 92,583 24,521 117,104 - .26 Zambia . ... .. 1.. 381,346 91.446 472,792 11.250 1.08 Sub-totals members(') .... ..... $22,458,814 $16,195,994 $38,654,808 $ 5,522,390 International Finance Corporation(t)... 415,233 67.693 482,926 - 1.08 Totals-June 30, 1979............ . $22,874,047 $16,263,687 $39,137,134 $ 5,522,390 100.00 Totals-June 30, 1978 . .. .... $19,358,909 $13,7 05,948 $3_3,064,857 $ 4,731,371 ~continued, 158 Bank Appendices Summary Statement of Loans (concluded) Appendix D International Bank for June 30, 1979 and June 30, 1978 Reconstruction and Development Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G '1) In some instances loans were made, with the guarantee of }a) Includes portions of loans made to the East African a member, in territories which at the time were included in Community. that member's membersiip but which subsequently became inde- '9) Represents portions of loans made to the East African pendent and members of the Bank in thei- own right (except Community. Malta which although independent is not a member of the Bank). In a!l these instances these territories have assumed liability as a borrower or guarantor. In order to avoid couble counting, Summary of Currencies Repayable on liabilities for these loans are shown under the name of the Effective Loans original member (whose guarantee continues unaffected). These loans are shown below together with an indication of the member Currencies 1979 1978 under whose name they are listed. Australian dollars ............... $ 118,761 $ 112,575 Amounts Austrian schillings ............... 59,474 56.647 Belgian francs .209,173 165,201 CUARANTORS ~~~~~ ~~~~1979 1978 Brazilian cruzeiros......... 8,868 12,572 Borrowers (in thousands) Burmese kyats. 1,201 917 AUSTRALIA Canadian dollars ............... 148,298 153,849 Papua New Guinea. $47,938 $48,644 Danish kroner . . ...... 33,967 27,135 UNITED KINGDOM Deutsche mark ............... 6,673,294 5,803,754 Kenya. ........... ..... 712 971 Finnish markkaa ............... 17,977 16,484 Malta . ......... . . 12 14 French francs ................... 149,383 142,074 Mauritius . . ... 1,542 1,759 Ghanaian cedis a., 1,406 2,674 Singapore. .. 7,137 7,568 Greek drachmas ., 2,829 2,686 *Southern Rhodesia ard Zambia. .. 16,108 17,010 Indian rupees ........... 72,552 65,074 Swaziland .... ...... . 2,726 2,900 Iranian rials 33,011 31,149 Trinidad and Tobago . . ....... 725 725 Iraqi dinars .. ................... 3,707 3,460 Uganda . ............... 8 Irish pounds . 17,272 13,685 'Loans made fDr joint benefit of territories listed. (Southern Rhodesia Italian lire .. 58,480 57.365 is included in the membership of the United Kingdom.) Japanese yen. ......... 3,707,567 2,767,442 Loans made to the International Finance Corparation are not Leban pands. 369,7600 402,166 guaranteed by members Lya d r1 0, 1132 (2' These amounts do not include $25,333,000 ($30,328,000- Libyan dinars. ...8,.343 1097,12864 1978) of effective loans, which the Bank has agreed to sell and Malaysi an ringgit............ 40,057 34,692 grant participations of $15,368,000 ($24,916,000-1978). The Mexican pesos . .... .. 27,444 26,578 grant participations represent participations on a grant basis Netherlands guilders ........ 603,787 573,960 taken in a number of loans under the terms of an aid cooperation agreement between a member country and the Bank. Of the Nicaraguan cordobas . ........... 164 235 undisbursed balance, the Bank has entered into irrevocable Norwegian kroner ............... 41,548 39,436 commitments to disburse $80,572,000 ($40,767,000-1978). Po rtu guese escudos .............. 8,32 8 8,390 19 Loan agreements totaling $3,646,570,000 ($3,189,351,000- Rials Omani .................... 736 736 1978) have been signed, but the loans do not become effective S Arba .i ''s and disbursements thereunder do not start until the borrowers Saudi Arabian riyals ............. 168,734 165,715 or guarantors, if any, take certain actions and furnish certain Singapore dollars... ............ 6,572 5,792 documents to the Bank, and agreements providing for loans South African rand ............. 34,981 31,318 totaling $1,875,820,000 ($1,542,020,000-1978) have been ap- Spanish pesetas ......._ ....... 63,534 49,811 proved by the Bank but have not been signed. Those amounts Sr Lanka rupees.51 50 are net of $5,460,000 ($16,879,000-1978) which the Bank has Sudanese pounds ................ 2,353 2,334 agreed Io sell. Swedish kronor ................. 56,448 61,403 (4? One loan equivalent to $23,250,000 is shown under Bolivia Swiss francs ....... 4,661,452 2,756,783 (Guarantor) but is also guaranteed by Argentina. New T aiwan dollars .............. 27 ,003 23,348 (5 Loans made to the Caribbean Development Bank for the Tunisan dmars .........Arbmi 2,506 1,657 benefit of the territories of the members listed (in the case of United A rab Emirates dirhams . ... 65,797 66,025 the United Kingdom, the territories are those of its Associated Um ted States dollars .... ........ 4,925,105 5,228,104 States and Dependencies in the Caribbean region). The members Venezuelan bolivares ............ 113,689 126,104 will be severally liable as guarantors to the extent of sub-loans Disbursed portion of effective made in their territories. loans held by Bank ............. $22,874,047 $19,358,909 s, Members are jointly and severally liable. Add-Undisbursed portion of ' One loan equivalent to $23,000,000 is shown under Ivory effective loans held by Bank ..... 16,263,687 13,705,948 Coast (Guarantor) but is also partially guaranteed by Upper Volta. Effective loans held by Bank ...... $39,137,734 $33,064,857 Maturity Structure of Effective Loans Periods June 30, 1979 Periods June 30, 1978 July 1, 1979 to June 30, 1980 ............. ... $ 971,968 July 1, 1978 to June 30, 199 .$ 849,937 July 1, 1980 to June 30, 1981 .................. 1,286,919 July 1, 1979 to June 30, 1980 .................. 980,785 July 1, 1981 to June 30, 1982 ... ............. 1,719,878 July 1, 1980 to June 30, 1981 . ,, 1,295,064 July 1, 1982 to June 30, 1983 ................. 2,072,321 July 1,1981 to June 30, 1982 .................. 1,583,689 July 1, 1983 to June 30, 1984 .......... ....... 2,255,160 July 1, 1982 to June 30, 1983 .1,762,407 July 1, 1984 to June 30, 1989 ................, 11,778,285 July 1, 1983 to June 30, 1988 .9,455,493 July 1, 1989 to June 30, 1994 .................. 9,622,623 July 1,1988 to June 30, 1993 .8,039,111 July 1, 1994 to June 30, 1999 .................. 4,660,545 July 1,1993 to June 30, 1998 .................. 4,639,233 July 1, 1999 to June 30, 2004 .................. 762,767 July 1, 1998 to June 30, 2003 .................. 1,226,390 July 1, 2004 to June 30, 2007 .................. 31,183 July 1, 2003 to June 30, 2007 .73,540 Undetermined(ci . ............. .............. 3,976,085 Undetermined() . .3,159,208 Total . . ............................... $39,137,734 Total .. . . $33,064,857 (l) Represents cancellations, prepayments and exchange adjustments which have not been allocated to specific maturities. Financial Statements 159 Summary Statement of Borrowings Appendix E International Bank for June 30, 1979 and June 30, 1978 Reconstruction and Development Expressed in United States dollars (in thousands)- see Notes to Financial Statements, Appendix G Operations during the fiscal year ended June 30, 1979 Repayments Principal and sinking Principal Weighted average Due dates outstanding fund and pur- outstanding effective at at June chase fund Translation at June interest rates June Currencies payable 30,1978 Borrowings purchases adjustments 30,1979 1979 1978 30, 1979 Belgian francs $ 79,976 $ - $ (2,974) $ 8,323 $ 85,325 7.12% 7.13% 1980-1986 Canadian dollars 110,166 - (12,093) (4,220) 93,853 6.49 6.55 1979-1993 Deutsche mark. . 5,687,756 1,167,276 (550,690) 756,722 7,061,064(') 6.95 7.09 1979-1997 French francs 28,491 - (440) 1,437 29,488 7.15 7.16 1980-1987 Italian lire .52,659 - (2,340) 1,317 51,636 7.23 7.23 1979-1988 Japanese yen. . 2,919,052 1,717,458 (422,143) (237,851) 3,976,516(2) 7.15 7.17 1979-1999 Kuwaiti dinars 352,571 - (40,890) (1,194) 310,487 7.07 7.08 1979-1992 Libyan dinars. 101,335 - - (1) 101,334 7.62 7.62 1983 Netherlands guilders. 403,142 - (17,055) 39,955 426,042 7.54 7.51 1980-1988 Pounds sterling 8,975 - (640) 1,453 9,788 5.27 5.27 1980-1982 Saudi Arabian riyals 145,138 - - 3,010 148,148 8.00 8.00 1984 Swedish kronor 31,690 - (2.315) 2,169 31,544 6.58 6.60 1980-1992 Swiss francs. 2,635,212 1,539,736 (15.960) 326,342 4,485,330(11 5.38 6.14 1979-1993 United Arab Emirates dirhams . . . 77,360 - - 1,587 78,947 8.00 8.00 1980-1989 United States dollars. 9.847,833 665,787 (780,610) - 9,733,0100) 7.82 7.62 1979-2002 Venezuelan bolivares 121,141 - (2,329) - 118,812 7.92 7.92 1979-1989 Principal at face value . . ...... $22,602,497 $5,090,257 $(1,850,479) $ 899,049 $26,741,324 7.06 7.24 Less-Receivable under contracts ... - 460,830 - 460,830(2) Principal outstanding at face value . $22,602,497 $4,629,427 $(1,850,479) $899,049 $26,280,494 Less-Net unamortized discounts and premiums . . 21,060 6,631 - 27,691 Totals. ..... $22,581,437 $4,622,796 $(1,850.479) $ 899,049 $26,252,803 In addition, the Bank has subsequently borrowed or entered into agreements to borrow SwF 200 million (US eqiuvalent $120.3 million); and DM 650 million (US equivalent $351.7 million),including a refinancing of DM 250 millon (US equivalent $135.3 million) maturing August 1,1979. '2) Includes the following contracts to borrow for settlement on the dates indicated: Issues Amounts Settlement dates (in thousands) Japanese yen: 8.00%, Loan of 1979, due 1994-1999 (Y12,000 million). $ 55,300 July 10. 1979 8.06%, Bonds of 1979, due 1994-1999 (YI5,000 million). 69,124 July 10, 1979 8.00% Loan of 1979, due 1994-1999 (Y15,000 million). . 69,124 July 20, 1979 8.10% Loan of 1979, due 1994-1999 (Y9,000 million) ....... 41,475 August 10, 1979 8.10% Loan of 1979, due 1994-1999 (Y20,000 million). 92,166 August 20, 1979 8.10% Loan of 1979, due 1994-1999 (Y9,000 million). 41,475 September 10, 1979 8.10% Loan of 1979, due 1994-1999 (Y20,000 million). .... 92,166 September 20, 1979 Total ... ......... ... .... .... ... .. .... $460,830 (3) Includes $196 million borrowed from the Interest Subsidy Fund which is administered by the Bank. This Fund, which obtained its resources from voluntary contributions from member governments, was established to subsidize the interest payments to the Bank on loans made to poorer developing countries. Maturity Structure of Borrowings Outstanding Periods June 30, 1979 Periods June 30, 1978 July 1, 1979 to June 30, 1980 . ......... $2,519,777 July 1, 1978 to June 30, 1979 . ....... 1,736,664 July 1,1980 to June 30, 1981 . . . 2,728,946 July 1,1979 to June 30, 1980 .......... 2,432,774 July 1, 1981 to June 30, 1982. 2,394,417 July 1,1980 to June 30, 1981 1,991,681 July 1, 1982 to June 30, 1983. 2,771,490 July 1,1981 to June 30, 1982 .......... .. 2,276,573 July 1,1983 to June 30, 1984. ... 2,290,140 July 1,1982 to June 30, 1983. 2,550,621 July 1, 1984 to June 30, 1989 . ...... 9,244,140 July 1,1983 to June 30. 1988 ..... .. 7,828,576 July 1,1989 to June 30, 1994 . . 2,697,980 July 1, 1988 to June 30, 1993 .......... .. 2,307,508 July 1,1994 to June 30, 1999 . .. ... 1,306,115 July 1,1993 to June 30, 1998. 1,064,374 July 1,1999 to June 30, 2002 ....... 327,489 July 1,1998 to June 30, 2002 413,726 Total ..... . . ........ .... $26,280,494 Total .... .. ..... .. $22,602,491 160 Bank Appendices Statement of Subscriktions to Capital Stock and Voting Power June 30, 1979 and June 30, 1978 Expressed in thousands of units of currency-see Notes to Financial Statements, Appendix G Amounts paid in Amoonts subject to callI Subscriptions (Note B) (Note B) Voting power Amounts Expressed Expressed expressed Expressed in Expressed in Per- in in current in current Num- Per- cen t special special United special United her cent of drawing drawinig States drawing States of of Members Shares total rights rights dollars_ rights dollars votes total Afghanistani.... .. 300 ~10 SDR 30,000 SDR 3,000 $ 3,873 SCR 27,000 $ 34,860 550 .17 Algeria .. ... 1,109 .38 110,900 11,090 14,318 99,81 0 128,805 1,359 .42 Argentina ........ 4,701 1.62 470,100 47,010 60,695 423,090 546,251 4,951 1.53 Australia ........ 6,450 2.27 645,000 64,500 83,276 580,500 749,484 6,700 2.07 Austria ......... 2,898 .93 269,600 26,960 34,808 242,640 313,772 2,946 .91 Bahamas. .. . .. 171 .06 17,100 1,710 2,208 15,390 19,670 421 .13 Bahrain ... .... 163 .06 16,300 1,630 2,104 14,670 18,940 413 .13 Bangladesh ..... 1,242 .43 124,200 12,420 16,035 111,780 144,319 1,492 ,46 Barbadoss..1..11.. I .04 11,100 1,110 1,433 9,990 12.898 361 .11 Belgium......... 7,268 2.51 726,800 72,680 93,837 654,120 844.534 7,518 2.32 Benin .. .... 100 .03 10,000 1,000 1,290 9,000 11,620 350 .11 Bolinia. .~.. .. 210 .07 21,000 2,100 2,711 18,900 24,402 460 .04 Botswana ... .. 43 .01 4,300 430 555 3,870 4,997 293 .09 Brazil..........3,733 1.29 373,300 37,330 48,197 335,970 433,771 3,983 1.23 Burma. ....... 591 .20 59,100 5,910 7,630 53,190 68,674 841 .26 Burundi..... .. 150 .05 15,000 1,500 1,937 13,500 17,430 400 .12 Camerson ..... 200 .07 20,000 2,000 2,582 18,000 23,240 450 .14 Canada. .... 11,122 3.84 1,112,200 111,220 143,596 1,000,980 1,292,365 01,372 3.52 Cape Verde, . ... 16 .01 1,600 060 207 1,440 1,859 266 .08 Central African Empire 100 .03 10,600 1,000 1,291 9,000 11,020 350 .11 Chad ........ 100 .03 10,000 1,000 1,291 9,000 11,620 350 .11 Chile .......... 1,240 .43 124,000 12,400 16,010 110,600 144,087 1,490 .46 China, Republic of .... 7,500 2.59 750,000 3 5,000 96,833 675,000 871,492 7,750 2.40 Colombia ........ 1,175 .41 117,500 11,750 15,170 . 105,750 136,534 1,425 .44 Csmsrss......... 16 .0 1 1,600 160 207 1,440 1.859 266 .08 Csngo, People's Republic of the 100 .03 10,000 1,000 1,291 9,000 11,620 350 .11 Costa Rica.. ..... 107 .04 10,700 1,070 1,381 9,630 12,433 357 .11 Cyprus. ........ 278 .10 27,800 2,780 3,589 25,020 32,303 528 .1 6 Denmark......... 2,524 .87 252,400 25,240 32,587 227,160 293,286 2,774 .86 Dosminican Republic ... 175 .06 17,500 1,750 2,259 15,750 20,335 425 .13 Ecuador........ 368 .13 36,800 3,680 4,751 33,120 42.761 618 .19 Egypt, Arab Republic of.') 1,421 .49 142,100 14,210 18,347 127,890 165,119 1,671 .52 El Salvador........ 120 .0 0 12,000 1,200 1,549 10,800 13,944 370 .11 Equatanial Guiinea.- 64 .02 6,400 640 826 5,760 7,437 314 .10 Ethiopia ......... 114 .04 11,400 1,140 1,472 10,260 13,247 364 .11 Fiji .111....... I .04 11,100 1,110 1,433 9,990 12,898 361 .11 Finland ......... 1,794 .62 179,400 17,940 23,162 161,460 208,461 2,044 .63 France.......... 12,792 4.41 0,279,200 127,920 165,158 1,151,280 1,486,418 13,042 4.03 Gabon.......... 120 .04 12.000 1.200 1,549 10,800 13,944 370 .11 Gambia, The....... 53 .02 5,300 530 684 4,770 6,159 303 .09 Germany, Federal Republic of...... 17,612 6.08 1,761,200 176,120 227,389 1,585,080 2,046,497 1 7,862 5.52 Ghana.......... 856 .30 85,600 8,560 11,052 77,040 99,466 1,106 .34 Greece.......... 945 .33 94,500 9,450 12,201 85,050 109,808 1,195 .37 Grenada...- .... 17 .01 1,700 170 219 1,530 1,975 267 .08 Guatemala ........ 123 .04 12,300 1,230 1,588 11,070 14,292 373 .12 Guinea .-.... 260 .07 20,000 2,000 2,582 18,000 23.240 450 .14 Guinea-Bissau. .~.... 27 .01 2,700 270 349 2,430 3.137 277 .09 Guyana,. ...... 171 .06 17,100 1,710 2,208 15,390 19,870 421 .13 Haiti ..0....... 50 .05 15,000 1,500 1,937 13,500 17,430 400 .12 Honduras ........ 84 .03 8,400 840 1,085 7,560 9,761 334 .10 Iceland. ........ 222 .08 22,200 2,220 2,866 19,980 25,796 472 .15 I ndia.......11,333 3.91 1,133,300 113,330 146,320 1,019,970 1,316,883 11,58 3 3.58 I ndonesia. ...... 3,888 1.34 388,800 38,880 50,198 349,920 451,782 4,138 1.28 Iran .......... 1,580 .55 158,000 15,800 20,399 142,200 183,594 1,830 .57 iraq .......... 698 .24 69,800 6,980 9,012 62,820 81,107 948 .29 Ireland......... 1,266 .44 126,600 12,660 16,345 113,940 147,108 1,516 .47 Israel, . ...... 1,108 .38 110,800 11,080 14,305 99,720 178,748 1,358 .42 Italy ......... 8,525 2.94 852,500 85,250 110,066 767,250 6992.596 8,775 2.71 ivnry Coastl ..... 365 .13 36,500 3,650 4,713 32,850 42,413 615 .19 Jamnaica ... ..... 446 .15 44,600 4,460 5,758 40,140 51,825 696 .22 Japan . ...... 13,539 4.67 1,353,900 135,390 174,802 1,218,510 1,573,218 13,789 4.26 Jordan. ..... - 187 .06 18,700 1,870 2,414 16,830 21.729 437 .14 Kampuchea, Demncratic. 214 .07 21,400 2,140 2,763 19,260 24,867 464 .14 Kenya. ..... 400 .14 40,000 4,000 5,164 36,000 46,480 650 .20 Korea, Republic af.... 1,306 .45 130,600 13,060 16.862 017,540 151,756 1,556 .48 Kuwait ..... ... 694 .24 69,400 6,940 8,960 62,460 80,642 944 .29 Lao People's Democratic Republic, . --.. 100 .03 10,000 1,000 1,291 9,000 11,020 350 .11 Lebuanon....... 90 .03 9,000 900 1,162 8,100 10,458 340 .11 Lesothos........ 43 .01 4,300 430 555 3,870 4,997 293 .09 Liberia. . ..... 213 .07 21.300 2,130 2,750 19,170 24,750 463 .14 -- -4 r-9 -< -< -< «E< c ocooc -=--=- v cOCAO c,-cco --cC-, toto-oi- = 0 3 m n 0 0 Z2c Z2z z ' 3- a z = O 0 0 O n . n ' ° O g - = n) °tE 0 0 °- - = " 0 n ' . = . c 0) 0) 0) o0- o~~~ ~~~~ c D 3B o ~> n 9o~ = _ @ . c3v Ev0ctCl O On~~~~~~~~0-.n ~~~~~~~~ ~ ~ ~ ~ : ~ ~ ~ ~ ~~ ~~~.0n.~~~~- . . . . . . . . . . . . . . . . . . . . . . . . o....~~~~~~~~gctn :- ~ ~ ~ ~ ~ ~ ~ ~ ~ -- --s:--: -) - _n . . . .. .. g tI C _ c 00 0 3 000 - - - - -r- -n - N-0- - -c)O. - On- - - 0 -- --0 ---cc- -- -0o-O-r-0-N)-O-)-C-"0- -o-- IoC-.0- 00-00-00-on-o- < b o- - - o COnto 0 0000 cc)c-c000.0 Ccc 000.00 - - - - -c- - 0- -c- - -C)1000 - - - - c- - - C- w - -c-c - -, - - - o 3 Ls A0 ~~~~~~~~9 x WD 2 0, C Z o- -C - -c - - - - c ------- -. -0 )- - - - N) - Z - CO CO n-c-N) cr - ---n -N)C-- NCcC -1. Cc.- --- --t0C)-- 0 0 - n-C-00 N- 0- On-c -) -~CON ~- - cc Cn 4wotoo.0s 00..0 0000 cnc 00c) Cozo 0.0 ~c 0 )b5&o .,co) 0- 000Cc E--°c)Cro00 o n-o&N) WOOOto- >oo}oLE, S°o vo° S00 8 >a> ~-v>~oo 0 on 0 162 Bank Appendices Notes to Financial Statements June 30, 1979 and June 30, 1978 Summary of Significant Accounting and cost. Gains or losses on sales of investments, measured by Related Policies the difference between average cost and proceeds of sales, Capital Stock are recorded as an element of income from investments. From 1973 until March 31, 1978, the Bank's capital stock Loans which is expressed in the Bank's Articles of Agreement in All of the Bank's loans are made to, or guaranteed by, terms of "United States dollars of the weight and fineness in members with the exception of loans to the International effect on July 1, 1944" (1944 dollars), has been translated Finance Corporation. The principal amounts of loans are by the Bank for purposes of its financial statements into repayable in the currencies lent. Interest on loans is also current United States dollars at the rate of $1.20635 per payable in the currencies lent. The Bank has not suffered 1944 dollar. Since the effectiveness on April 1, 1978, of the any losses on loan receivables and it has a policy of not Second Amendment to the Articles of Agreement of the participating in moratoria or reschedulings. No losses on International Monetary Fund(the Fund), currencies no longer loan receivables are anticipated and, accordingly, no reserve have par values in terms of gold. The Bank is examining for loan losses has been established; however, should such the implications of this change on the valuation of its capital losses arise they would be included in the determination stock. No decisions on this matter have been taken. How- of net income. ever, for purposes of the financial statements at June 30, Administrative Expenses 1979 and 1978, the Bank has expressed the value of its A management fee is charged to the International Devel- capital stock on the basis of the special drawing right (SDR) opment Association and a service and support fee to the in terms of United States dollars as computed by the Fund, International Finance Corporation representing their respec- $1.29110 per SDR on June 30, 1979 ($1.23953 per SDR on tive shares of the administrative expenses of the Bank. June 30, 1978). (See Note B. This note also shows what the Disposition of Income and General Reserve value of the Bank's capital stock would have been expressed The Bank has not declared or paid any dividends to its in terms of $1.20635 equal one 1944 dollar.) For the time members. Commencing in 1950, a portion or all of the being payments on account of subscriptions will continue to accumulated net income has been allocated to the General be accepted at the equivalent of $120,635 per share of Reserve. (See Note D.) capital stock. Since 1964, it has been the Bank's policy to transfer to Translation of Currencies the International Development Association part of the year's The financial statements are expressed in United States income which was not needed for allocation to reserves dollars solely for the purpose of summarizing the Bank's or otherwise required to be retained in the Bank's business financial position and the results of its operations for the and accordingly could have been prudently distributed as convenience of its members and other interested parties. dividends. Such transfers are accounted for as a charge to The Bank is an international organization which conducts accumulated net income. its operations in the currencies of all of its members. The Staff Retirement Plan Bank's resources are derived from its capital, borrowings The Bank has a contributory retirement Plan for its staff, and accumulated earnings in the various currencies of its which also covers the staff of the International Finance members and Switzerland and are held, invested or lent in Corporation. All contributions to the Plan and all other those same currencies. The Bank matches its borrowing assets and income of the Plan are held by the Bank sepa- obligations in any one currency with assets in the same cur- rately from the other assets of the Bank and the Corporation rency, as prescribed by its Articles of Agreement, primarily and can be used only for the benefit of the participants in by holding, or lending the proceeds of its borrowings in the Plan and their beneficiaries. The total cost of the Plan the same currencies in which they are borrowed. Borrowed (see Note F) includes amortization of unfunded liabilities. funds are sometimes temporarily converted into other On April 22, 1975, the Bank made arrangements for payment currencies and at the same time, forward exchange con- of the unfunded liability at December 31, 1974 over a forty- tracts are entered into in order to recover the currency year period and for payment of any future increase in this converted. The Bank maintains a neutral currency position liability over periods of from 15 to 30 years. with respect to its other resources by not converting one Note A-Translation of Currencies currency into another except for small amounts required to A Statement issued in 1975 by the Financial Accounting meet certain obligations and operational needs of the Bank. Standards Board in the United States requires that foreign In general, the Bank translates its assets and liabilities in currency translation adjustments be included in the deter- currencies other than United States dollars at market rates mination of net income for the period in which they occur; of exchange to the United States dollar at the end of each however, in view of its character as an international organi- quarter with the exception of buildings and deferred charges zation and its related financial policies described previously, which are translated at exchange rates in effect when the the Bank does not deem this Statement to be applicable buildings were acquired or the charges incurred. Income in the circumstances. Had the Bank complied with this and expenses other than depreciation and amortization Statement, net income for the fiscal year ended June 30, charges are translated at an average of the market rates of 1979 would have increased by $114,715,000 ($110,199,000 exchange in effect during each quarter. for the fiscal year ended June 30, 1978) and the General Under the Bank's present policies, adjustments arising from Reserve would have decreased by the same amount. the translation of currencies to the current United States Note B-Capital Stock, Restricted dollar equivalent would not now or in the future result in Currencies and Maintenance of Value realized gains or losses such as would result from the Capital Stock: In the Articles of Agreement, the capital conversion of the various currencies into United States stock of the Bank is expressed in terms of "United States dollars. Accordingly, translation adjustments, with the dollars of the weight and fineness in effect on July 1,1944" -exception of those relating to capital subscriptions described (1944 dollars). in Note B, are charged or credited to the General Reserve On April 30, 1976, the Board of Governors of the Fund rather than income. (See Note A.) In those few instances approved proposed amendments to the Fund's Articles of where currencies are converted to another currency, the Agreement (the Second Amendment) which entered into resulting gain or loss, if any, is included in the determina- force on April 1, 1978. Under the Second Amendment, cur- tion of net income. rencies no longer have par values, gold is abolished as a Investments common denominator of the monetary system and all cal- Investment securities are recorded at cost or amortized culations for the purposes of the Fund's Articles are made Financial Statements 163 Appendix G International Bank for Reconstruction and Development on the basis of the speciai drawing right (SDR). When the portion an amount of $143,647,000 ($137,909,000-1978) SDR was introduced into the Fund's Articles in 1969, it was was subsequently converted by members into United States expressed in terms of a specified weight of gold equal to the dollars, subject to the right of the Bank or the members gold content of the 1944 dollar. Since July 1,1974, the value to reverse the transactions. The amounts paid in gold or of the SDR in terms of United States dollars has been based United States dollars or subsequently converted by mem- on the weighted relative values of a number of major cur- bers into United States dollars are freely usable by the rencies (the basket), including the United States dollar. The Bank in any of its operations; however, the remaining value of the SDR on July 1, 1974, expressed in terms of amounts paid in the currencies of the members, herein- United States dollars, was $1.20635, which was the equi- after called restricted currencies, are usable by the Bank valent of one 1944 dollar. On March 31, 1978, the Fund made in its lending operations only with the consent of the certain changes in the basket of currencies effective July 1, respective members. The equivalent of $2,200,146,000 1978, and established a method of further adjustment, at ($1,984,817,000-1978) has been used with such consent. five-yearly intervals, to reflect changes in the relative Maintenance of Value: Article 11, Section 9 of the Articles importance of currencies over time, while ensuring con- fAreetpoie o aneac fvle so tinuity and reasonable predictability for the valuation of the of Agreement provides for matenance of value, as of SDR. The amounts of the currencies in the revised basket the time of subscrption, of such restricted currencies, effective July 1,1978, are such that the value of the revised requirng (1)the member to make additional payments tothe basket in terms of any currency was exactly the same, at Bank in the event that the par value of its currency is June 30, 1978, under the revised valuation as under the the opinion of the Bank, depreciated to a significant extent then existing valuation. in its territories, and (2) the Bank to reimburse the mem- As a result of the Second Amendment and the simultaneous ber in the event that the par value of its currency is in- repeal of Section 2 of the Par Value Modification Act (31 creased. Following the establishment of central rates by U.S.C. 449), the provision of United States law defining the several members in lieu of existing par values, in March 1973, par value of the United States dollar in terms of the SDR the Executive Directors resolved that, for all members that and gold, the pre-existing basis for translating the term established central rates for their respective currencies, 'United States dollar of the weight and fineness in effect pending the establishment of new par values, maintenance on July 1, 1944" into current United States dollars or into of value obligations be settled on the basis of those central any other currency, no longer exists. rates. These obligations of the members and of the Bank The General Counsel of the Bank has rendered a legal become effective immediately upon the happening of those opinion concluding in substance that upon the entry into events with respect to holdings of restricted currencies force of the Second Amendment references in the Bank's represented by currency balances and demand obligations. Articles of Agreement to the 1944 dollar should be read as With respect to restricted currencies out on loan, those referring to the SDR, as determined from time to time by obligations become effective only as and when such cur- the Fund, and the mutual obligations of each member and rencies are recovered by the Bank, except that in several the Bank, with respect to maintenance of value of certain cases the Bank and the members concerned have agreed currency holdings, will be measured by the value of the to make provisional settlements of such obligations, by currency in question in terms of the SDR at any given time, means of one or more payments over periods not exceeding five years. At June 30, 1979, $1,655,000 (nil-1978) was The General Counsel has, however, also stated that in receivable and $3,262,000 ($3,864,000-1978) was payable the exercise of their statutory power under Article IX of by the Bank on such provisional settlements. These amounts the Bank's Articles, the Executive Directors could con- are included in Amounts Required to Maintain Value of clude that the 1944 dollar would be taken to mean 1.20635 Currency Holdings underthe headings Receivable on Account current dollars, with the consequence that maintenance of of Subscribed Capital and Liabilities, respectively. value would be measured by that standard. Prior to April 1, 1978, where market rates of exchange A member government has raised the question whether the were not related to par values or central rates, as in the substitution of a new unit of value, insofar as it would cases of a majority of members, and where there were dif- give rise to any new obligations with respect to mainte- ferences between market rates of exchange and the rates at nance of value and capital stock subscription payments, which capital subscriptions of members had been paid or should be made only by amendment of the Articles. It also were payable such differences were shown as Translation raised questions as to the desirability of retaining the prin- Adiustments on Capital Subscriptions under the heading ciple of maintenance of value, the form in which it is applied Other Assets. These amounts represented notional receiva- and the appropriateness of substituting a unit of value other bles and payables which would become maintenance of than the SDR. Pending action on these questions, the finan- value obligations if and when the provisions of Article 11, cial statements have been drawn up in accordance with the Section 9 of the Articles of Agreement or the resolution of General Counsel's opinion, that is, the value of the capital the Executive Directors described above could be applied. stock is expressed in terms of the SDR. According to the legal opinion of the Bank's General Counsel The Bank's capital comprises 340,000 authorized shares of referred to in this Note B under Capital Stock, mainte- the par value of SDR 100,000 each, of which 289,902 shares nance of value pursuantto Article I1, Section 9 of the Articles have been subscribed (266,597-1978). Ten percent of the of Agreement would be determined on the basis of the capital subscriptions has been called and paid in; the SDR, and is treated in the financial statements on this remaining ninety percent is subject to call by the Bank basis. Since the Bank is still considering the implications onlywhenrequiredtomeettheobligationsoftheBankcreated of the Second Amendment and in view of the questions by borrowing or guaranteeing loans. As to $29,943,397,000 referred to above, the timing of any establishment and ($26,436,398,000-1978), the restriction on calls is imposed settlement of these notional maintenance of value items by the Articles of Agreement and as to $3,742,925,000 $460,399,000 ($372,600,000-1978) receivable and ($3,304,550,000-1978) by resolutions of the Board of $142,271,000 ($115,811,000-1978) payable are uncertain. Governors. Accordingly, they are included in Other Assets, and Liabilities Restricted Currencies: The portion of capital subscriptions as notional maintenance of value obligations. paid in tothe Bank isdivided intotwo parts:(1)$374,293.000 Effectof Valuation in Termsofthe SDR: Expressingthe value ($330,455.000-1978) initially paid in gold or United States of the Bank's capital stock in terms of the SDR rather than dollars, and (2) $3,368,632,000 ($2,974,095.000-1978) paid in terms of $1.20635 does not have a material effect on in the currencies of the respective members. Of this latter the financial position or results of the operations of the ncontinued) 164 Bank Appendices Notes to Financial Statements (concluded) Appendix G International Bank for Reconstruction and Development June 30, 1979 and June 30, 1978 Note B (continued) in the fiscal year ended June 30, 1978 and in September Bank. If the value of the capital stock were expressed in 1978, authorized the transfer of the balance of $100,000,000 terms of $1.20635, the subscribed capital would have by way of granttothe International DevelopmentAssociation. been $34,972,328,000 ($32,160,929,000-1978) instead of $37,429,247,000 ($33,045,498,000-1978), the uncalled por- In accordance with the policies discussed in the Summary tion of subscriptions $31,475,095,000 ($28,944,836,000- of Significant Accounting and Related Policies and Note A, 1978) instead of $33,686,322,000 ($29,740,948,000-1978) the General Reserve has increased by $114,715,000 during the paid-in capital $3,497,233,000 ($3,216,093,000-1978) the fiscal year ($110,199,000-1978); it has been credited instead of $3,742,925,000 ($3,304,550,000-1978) and the with $137,495,000 ($123,565,000-1978) representing net net maintenance of value obligations to the Bank would translation adjustments as a result of currency depreciations have been $113,822,000 ($181,104,000-1978) instead of and appreciations and charged with $22,780,000 ($13,366,000 $323,153,000 ($256,179,000-1978). Should the Executive -1978) representing a compensating effect of the deprecia- Directors conclude that the capital would be measured by tion of the United States dollar, in terms of the SDR, on the some standard other than the SDR, any adjustment of the one percent portion of the Bank's paid-in capital and the amounts shown in the Balance Sheet as Notional Amounts nine percent portion released by certain member countries Required to Maintain Value of Currency Holdings, would for lending in United States dollars. (See Statement of require a corresponding adjustment of the capital. Changes in General Reserve-Appendix B.) Since the value of the SDR in terms of current dollars may vary from day On June 28, 1979, the Executive Directors submitted to the to day, that portion of the Bank's capital paid in or released Bank's Board of Governors a draft resolution to increase in dollars will be subject to further adjustment at the end the authorized capital stock of the Bank by 331,500 shares of each quarter. (subject to adjustment depending on the decision reached The on expressing the value of the Bank's capital stock), which TeSpecial Reserve consists of loan commissions set aside represents an increase of approximately $40,000,000 000 pursuant to Article IV, Section 6, of the Articles of Agree- repreend ts anuthorease subscriptions xbyimematelyto0substant ment which are to be held in liquid assets and to be used and to authorize subscriptions by members to substantially only for the purpose of meeting liabilities of the Bank on all of the shares so authorized. This draft resolution, pro- its borrowings and guarantees. The Special Reserve assets vides that the paid-in portion of these shares would be 7.5%1 comprise obligations of the United States Government and (in contrast to the 10%, paid-in portion of existing capital its instrumentalities and are included under the heading stock); subscribing members would pay 3/4% of the sub- Investments. As a result of a decision made in 1964, the scription price in gold or United States dollars and 6% % in allocation of such commissions to the Special Reserve was their respective currencies. To avoid the dilution of the voting discontinued in respect of subsequent loans and no further power of certain members which would otherwise occur if additions are being made to it. this capital increase were implemented, the Executive Directors have also submitted a draft resolution to the Board Interest and other charges of $1,034,000 payable to the of Governors to increase the authorized capital stock by an Bank on loans are overdue by more than 60 days. The prin- additional 33,500 shares, which represents a further in- cipal disbursed and outstanding on these loans amounts to crease of approximately $4,000,000,000, and to authorize $35,638,000. It is not anticipated that these delays will result each member to subscribe 250 shares of this additional in any loss to the Bank. capital, none of which would be paid in. Both draft resolu- tions provide that no subscriptions authorized by them may Note E-Contributions to the International be accepted prior to September 30, 1981. Development Association The Bank has authorized transfers by way of grants Note C-Investments to the International Development Association totaling The marketvalueof investmentsecuritieswas$9,611,863 000 $1,325,000,000 from net income for the fiscal years ended ($8,568,937,000-1978) compared with a cost or amortized June 30, 1964 through June 30, 1978. Of this amount cost of $9,707,221,000 ($8,705,757,000-1978), and a face $792,278,000 was payable at June 30, 1979. ($1,225,000,000 value of $9,757,431,000 ($8,766,014,000-1978), including had been authorized from net income through the fiscal year investments not traded in the market which were valued at ended June 30, 1977 and $734,503,000 was payable at their cost of $3,271,021,000 ($369,701,000-1978). Invest- June 30, 1978.) ments include securities purchased under agreements to resell amounting to $8,835,000 ($52,442,000-1978). Obli- Note F-Staff Retirement Plan gations of the United States Government and its instru- The cost of the Plan to the Bank for the fiscal year ended mentalities having a cost or amortized cost of $292,538,000 June 30, 1979 was $30,605,000 ($24,959,000 for the fiscal ($292,538,000-1978) and a market value of $289,088,000 year ended June 30, 1978). An actuarial valuation of the ($287,473,000-1978), set aside in respect of the Special Plan is made annually. At December 31, 1978, the valuation Reserve, as described in Note D, are included under this indicated an unfunded liability of $115 178,000 ($92,049,000 heading. at December 31, 1977), a portion of which relates to the International Finance Corporation. This amount is being The annualized rate of return on the average investments amortized as described in the Summary of Significant held during the fiscal year, based on the portfolio held at Accounting and Related Policies. At December 31, 1978, the the end of each month and including realized gains and market value of the Plan's assets exceeded the actuarially losses, was 7.55% (6.99%-1978). computed value of vested benefits. Note D-Reserves and Net Income Note G-Income and Expenses The President of the Bank has proposed to the Executive Income from investments includes net losses of $73,134,000 Directors that they approve the allocation of $306,542,000 ($5,181,000-1978) resulting from sales of investments. to the General Reserve out of the $406,542,000 net income Otherincomeincludesnetgainsof$10,025,000($7,941,000- earned in the fiscal year ended June 30, 1979 and that they 1978) resulting from repurchases of obligations of the Bank recommend to the Board of Governors that the balance of prior to maturity pursuant to the terms of the respective $100,000,000 be transferred by way of grant to the Inter- borrowing agreements. Administrative expenses are net of national Development Association. the management fee of $121,425,000 ($91,911,000-1978) charged to the International Development Association and In August 1978, the Bank allocated $138,111,000 to the of the service and support fee of $2,197,000 ($2,158,000- General Reserve out of the $238,111,000 net income earned 1978) charged to the International Finance Corporation. Financial Statements 165 Report of Independent Financial Statements Accountants Covered by the Foregoing Report 1801 K Street, N.W. WASHINGTON, D.C. 20006 JULY 31, 1979 TO INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT WASHINGTON, D.C. We have examined the financial statements (Appendices A Balance Sheet ................ ........... Appendix A through G) of International Bank for Reconstruction and Statement of Income.Appendix B Development as of June 30, 1979 and 1978, and for the years then ended. Ourexaminationsof thesestatementswere made Statement of Accumulated Net Income. ........ Appendix B in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records Statement of Changes in General Reserve ....... Appendix B and such other auditing procedures as we considered neces- Statement of Changes in Financial Position - . Appendix C sary in the circumstances. Summary Statement of Loans ........ ........ Appendix D Consistent with past practice, the Bank records currency Summary Statement of Borrowings . ........... Appendix E translation adjustments, except those pertaining to the nine percent portion of its capital stock, as charges against or Statement of Subscriptions to Capital Stock and credits to the General Reserve. Statement 8 of the Financial Voting Power .................. ........... Appendix F AccountingStandards Board requiresthattheseadjustments which are set forth in the Statement of Changes in General Notes to Fiancial Statements.Appendix G Reserve, be included in the determination of net income; however, in view of the Bank's character as an international organization and its related financial policies, which are described in the Summary of Significant Accounting and Related Policies (Translation of Currencies) and in Note A, the Bank does not deem the application of this accounting principle to be appropriate in the circumstances, and we concur with this conclusion. In our opinion, the financial statements examined by us present fairly, in terms of United States currency, the finan- cial position of International Bank for Reconstruction and Development at June 30, 1979 and 1978, and the results of its operations and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles consistently applied. PRICE WATERHOUSE & CO. 167 IDA Appendices Financial Statements Page Appendix A Statement of Condition .... . ........... ............ 168 Appendix B Statement of Income ................. 170 Statement of Transfers from International Bank for Reconstruction and Development .170 Appendix C Statement of Changes in Resources Available for Commitment..... ... 171 Appendix D Summary Statement of Development Credits 172 Appendix E Statement of Voting Power, and Subscriptions and Supplementary Resources .174 Appendix F Notes to Financial Statements .177 Report of Independent Accountants . . 180 168 IDA Appendices Statement of Condition June 30, 1979 and June 30, 1978 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix F Assets 1979 1978 DUE FROM BANKS Unrestricted currencies (including interest-bearing demand deposits $581-1979, $421-1978) .............................. $ 627,540 $ 516,662 Currencies subject to restrictions-Note A . . 55,713 59,120 $ 683,253 575,782 INVESTMENTS-Note B Obligations of governments and their instrumentalities ............. $ 106,846 83,379 Time deposits and other obligations of banks . ........... 53,839 122,007 160,685 205,386 RECEIVABLE ON ACCOUNT OF SUBSCRIPTIONS AND SUPPLEMENTARY RESOURCES-Note A Non-negotiable, non-interest-bearing demand obligations Unrestricted ............................................. $ 5,741,267 3,483,923 Subject to restrictions ...................... 154,062 156,446 Amounts due on additional subscriptions and supplementary resources .................. ........................... 538,096 496,566 Amounts required to maintain value of currency holdings-Note C 11,164 19,087 6,444,589 4,156,022 RECEIVABLES-OTHER International Bank for Reconstruction and Development ............ $ 792,278 734,503 From purchaser on account of effective development credits agreed to be sold ...................... ...................... 3,335 12,660 Accrued service charges on development credits . .......... 20,207 16,348 Accrued interest on investments . ... ............ 1,815 1,101 817,635 764,612 DEVELOPMENT CREDITS (See Appendix D) ....................... $16,937,278 13,958,578 Less-Development credits approved but not yet effective ........ 1,697,300 1,609,350 Effective development credits (including undisbursed balance $5,575,027-1979, $3,880,768-1978) ........................... 15,239,978 12,349,228 OTHER ASSETS Notional amounts required to maintain value of currency holdings- Notes A and C ............................................. $ 99,094 87,103 Miscellaneous ........................... .................. 17,799 10,349 116,893 97,452 $23,463,033 $18,148,482 Financial Statements 169 Appendix A International Development Association Liabilities, Subscriptions, Supplementary Resources, 1979 1978 Transfers and Accumulated Net Income LIABILITIES Amounts required to maintain value of currency holdings-Note C $ 5,678 $ 4,101 Accounts payable and other liabilities .......................... 10,628 1,614 Notional amounts required to maintain value of currency holdings-Notes A and C .......... 4,794 4,835 Payable for investment securities purchased ................... 15,065 Undisbursed balance of effective development credits (See Appendix D) Held by Association ............................ ........... $ 5,575,027 3,880,768 Agreed to be sold .................................. ...... 15,232 20,021 5,590,259 3,900,789 Borrowings from Swiss Confederation-Note D .................. 109,428 98,140 SUBSCRIPTIONS AND SUPPLEMENTARY RESOURCES (See Appendix E and Appendix F-Note E) ..................... 16,460,320 12,914,038 Payment on account of pending subscription (See Appendix E).... 16 TRANSFERS FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (See Appendix B and Appendix F-Note F) .................... 1,280,375 1,192,600 ACCUMULATED NET (LOSS) INCOME Beginning of fiscal year ...................................... $ 32,365 75,306 Fiscal year (See Appendix B) . .................. (45,895) (42,941) (13,530) 32,365 $23,463,033 $18,148,482 170 IDA Appendices Statement of Income Appendix B International Development Association For the fiscal years ended June 30, 1979 and June 30, 1978 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix F July 1-June 30 1978/79 1977/78 Income Income from development credits ..................................................... $ 67,602 $ 59,640 Income from investments ..................... ...................................... 17,106 12,753 Exchange adjustments ..................... ......................................... (1,152) (144) Total Income .............................................................. $ 83,556 $ 72,249 Expenses Management fee to International Bank for Reconstruction and Development ................ $ 121,426 $ 91,911 Operating Loss ............................. ......................... $ (37,870) $ (19,662) Translation adjustments-Note G ...................................................... (8,025) (23,279) N et Loss .... .......................... ...... .................. $ (45,895) $ (42,941) Statement of Transfers from International Bank for Reconstruction and Development For the fiscal years ended June 30, 1979 and June 30, 1978 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix F July 1-June 30 1978/79 1977/78 Balance at beginning of fiscal year: Available for general purposes of the Association ........................................ $1,189,600 $1,099,150 Available for grants for agricultural research and for control of onchocerciasis .............. 3,000 2,575 $1,192,600 $1,101,725 Transfer from International Bank for Reconstruction and Development during fiscal year: For general purposes of the Association ........................... .................... 88,050 89,800 For grants for agricultural research and for control of onchocerciasis ..................... . 11,950 10,200 Disbursed to approved grant recipients ................................................ (12,225) (9,125) Balance at end of fiscal year: Note F Available for general purposes of the Association .......... ....................... $1,277,675 $1,189,600 Available for grants for agricultural research and for control of onchocerciasis .............. 2.700 3,000 Totals ...$ 01.......................................................... $1,280,375 $ 1 ,192,600 Financial Statements 171 Statement of Changes in Resources Appendix C International Development Available for Commitment Association For the fiscal years ended June 30, 1979 and June 30, 1978 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix F July 1-June 30 1978/79 1977/78 Resources Provided Net loss (See Appendix B) .................................................... ...... $ (45,895) $ (42,941) Add-Certain translation adjustments as a result of currency depreciations and appreciations .................................. ................ 11,288 24,183 Decrease in resources provided by operations . . ...... ................................. $ (34,607) $ (18,758) From Members: Subscriptions, unrestricted ........................ ................ $ 861 2,612 Supplementary resources-Subscriptions and contributions to fifth replenishment ........... .......... ... 1,174,530 5,979,532 Adjustment of resources provided in prior fiscal years as a result of currency depreciations and appreciations and adjustment resulting from change in basis of valuation of certain subscriptions and supplementary resources from 1960 dollar to SDR . ........... 340,909 178,869 Increase in resources provided by members ... . ............................... 1,516,300 $6,161,013 Transfers from International Bank for Reconstruction and Development . . .8...... 8 ,075 90,450 Repayments of development credits ......................... ..................... 20,912 19,630 Grant participations in development credits . . ............... 8,300 21,100 Cancellations and refundings of development credits ... ........... ..... ......... . 13,569 20,870 Total increase in resources provided ............................ ....... ..... $1,612,549 $6,294,305 Resources Used Development credit agreements approved ................ .................. ...... $3,021,480 $2,312,950 Decrease (Increase) in Resources Available for Commitment .... .... ..... $(1,408,931) $3,981,355 Resources Available for Commitment Beginning of fiscal year ........... . . .. ............................ 3,986,730 5,375 End of fiscal year (See Appendix F-Note E).... ......... .... ......... ... .. .... $2,577,799 $3,986,730 Composition of Resources Available for Commitment Unrestricted currencies ................ ........ . .... .............. ............... $ 627,540 $ 516,662 Investments ...... ... ..................................................... 160,685 205,386 Unrestricted receivables on account of subscriptions and supplementary resources ........... 6,289,799 3,998,111 Receivables-Other .......... ....... ........... 823,262 761,612 Other assets ...3 ......4............. ........................................... 39,33 8 42,826 Subscriptions and supplementary resources not yet due (1' ..... ........... . 1,964,378 3,982,368 Less-Undisbursed development credits (including development credits not yet effective) and other liabilities ....... ..... ........................ ...... ....... . (7,327,203) (5,520,235) Totals ...................... ................................ $2,577,799 $3,986,730 MO0 this amount, $1,937,000 ($1,727,000-1978) in respect oF the third instalment ot the fifth replenishment would be avaitable for unqualified commitment only upon receipt of unqualified notifications representing 80% ot the third instalment. (See Appendix F-Note E.) 172 IDA Appendices Summary Statement of Development Credits June 30, 1979 and June 30, 1978 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix F June 30, 1979 Effective development credits held by Association Percent of total Development effective and Members in whose credits approved non-effective territories development Disbursed Undisbursed but not yet development credits have been made portion(') portion(2) Total effective(3) credits Afghanistan ....................... $ 72,174 $ 100,133 $ 172,307 $ 55,100 1.34 Bangladesh . ...................... 706,685 306,730 1,013,415 186,000 7.08 Benin . ............... 36,744 20,962 57,706 11,000 .41 Bolivia . .............. 61,510 11,582 73,092 10,500 .49 Botswana . ...................... 15,625 145 15,770 - .09 Burma ............ ........... 95,644 106,674 202,318 - 1.19 Burundi ........................ 20,755 27,590 48,345 6,800 .33 Cameroon ....................... 116,485 50,396 166,881 30,000 1.16 Central African Empire .............. 14,739 14,138 28,877 2,500 .19 Chad ........................ 34,727 19,126 53,853 19,100 .43 Chile ...................... . 21,106 - 21,106 - .12 China, Republic of .................. 14,634 - 14,634 - .09 Colombia ....................... 21,661 - 21,661 - .13 Comoros ........................ 1,175 3,825 5,000 - .03 Congo, People's Republic of the ...... 20,553 1,651 22,204 - .13 Costa Rica ....................... 5,054 - 5,054 - .03 Dominican Republic ................. 17,096 4,985 22,081 - .13 Ecuador ............... ......... 36,505 1,660 38,165 - .23 Egypt, Arab Republic of . ............ 246,977 211,959 458,936 109,500 3.36 El Salvador ... .................... 22,546 4,778 27,324 - .16 Ethiopia ....... ................ 198,566 152,969 351,535 - 2.08 Gambia, The ....................... 9,888 12,605 22,493 5,000 .16 Ghana ....................... 92,142 15,451 107,593 19,000 .75 Guinea ....................... 18,830 23,800 42,630 - .25 Guinea-Bissau ...................... 100 8,900 9,000 - .05 Guyana ....................... 15,424 3,206 18,630 10,000 .17 Haiti .............................. 51,583 41,910 93,493 16,500 .65 Honduras .............. ......... 44,835 14,305 59,140 - .35 India ................... .... 4,118,892 2,546,586 6,665,478 271,000 40.95 Indonesia ........... ............ 514,238 177,118 691,356 77,000 4.54 Ivory Coast ..... ............ 7,500 - 7,500 - .04 Jordan ....................... 60,629 24,922 85,551 - .51 Kenya ....................... 142,419 121,132 263,551 27,000 1.72 Korea, Republic of .................. 114,166 - 114,166 - .67 Lao People's Democratic Republic ..... 100 8,100 8,200 10,400 .11 Lesotho ....................... 18,566 17,307 35,873 15,000 .30 Liberia ..... . 15,245 28,718 43,963 - .26 Madagascar .... ................. 93,274 60,458 153,732 49,000 1.20 Malawi ............................ 110,147 50,311 160,458 14,500 1.03 Maldives .... ................... - - - 3,200 .02 Mali ....................... 90,702 60,502 151,204 16,500 .99 Mauritania ....................... 31,985 7,543 39,528 8,000 .28 Mauritius ....................... 19,206 1,213 20,419 - .12 Morocco ....................... 38,492 13,709 52,201 - .31 Nepal ....................... 42,518 133,124 175,642 25,800 1.19 Nicaragua ....................... 23,215 148 23,363 - .14 Niger .. ..................... 42,120 22,434 64,554 37,000 .60 Nigeria ....................... 38,058 - 38,058 - .22 Pakistan ....................... 717,615 274,219 991,834 79,000 6.32 Papua New Guinea .................. 39,447 30,407 69,854 - .41 Paraguay ....................... 40,591 8,114 48,705 - .29 Philippines ....................... 31,418 28,798 60,216 62,000 .72 Rwanda ............. ........ 42,266 32,473 74,739 13,950 .52 Senegal . ...................... 80,984 41,266 122,250 24,500 .87 Sierra Leone ...................... 25,898 5,586 31,484 - .19 Financial Statements 173 Appendix D International Development Association June 30, 1979 Effective development credits held by Association Percent of total Development effective and Members in whose credits approved non-effective territories development Disbursed Undisbursed but not yet development credits have been made portion(') portion(') Total effective(-) credits Somalia . ....................... $ 58,729 $ 43,906 $ 102,635 $ 27,500 .77 Sri Lanka . . ..................... 69,089 78,050 147,139 68,000 1.27 Sudan . . ..................... 142,931 92,847 235,778 112,000 2.05 Swaziland . . ..................... 7,008 1,118 8,126 - .05 Syrian Arab Republic . . .... 39,982 8,159 48,141 - .28 Tanzania ................. ..... 189,332 176,204 365,536 64,500 2.54 Thailand .................... ... 26,717 35,274 61,991 60,000 .72 Togo .................... ... 27,089 31,205 58,294 16,200 .44 Tunisia ............. .......... 67,377 2,195 69,572 - .41 Turkey ....................... 189,610 2,196 191,806 - 1.13 Uganda ....................... 45,074 2,518 47,592 - .28 Upper Volta . ...................... 57,040 40,760 97,800 - .58 Viet Nam ........ _ ........ - 60,000 60,000 - .35 Western Samoa . .... ..... 4,271 129 4,400 - .03 Yemen Arab Republic . ....... 72,924 58,826 131,750 42,000 1.03 Yemen, People's Democratic Republic of . .................. ... 26,829 21,462 48,291 15,000 .37 Zaire . ............... 127,495 66,510 194,005 55,000 1.47 Zambia . .......- - - 22,250 .13 Totals-June 30, 1979 $9,664,951 $5,575,027 $15,239,978 $1,697,300 100.00 Totals-June 30, 1978 . ......... $8,468,460 $3,880,768 $12,349,228 $1,609,350 (I) The disbursed portion includes adjustments to reflect the devaluations of the United States dollar in 1972 and 1973 except in respect of a credit for $9,000,000 which is expressed and is repayable in legal tender dollars. (2) These amounts do not include $15,232,000 ($20,021,000-1978) of grant participations. The grant participations represent participations on a grant basis taken in a number of development credits under the terms of an aid cooperation agreement between a member country and the Association. Of the undisbursed balance atJune 30,1979 the Association has entered into irrevocable commitments to disburse $12,926 ,009 ($13,727,000-1978). u3t Development credit agreements totaling $1,465,850,000 ($1,264,450,000-1978) have been signed, but the credits do not become effective and disbursementsthereunder do notstart until the borrowers take certain actions and furnish certain documents to the Association; and agreements providing for creditstotaling $231,450,000($344,900,000-1978) have been approved by the Association but have not been signed. Those amounts are net of $8,300.000 (nil-1978) of a grant participation in a non-effective development credit. Maturity Structure of Effective Development Credits Periods June 30,1979 Periods June 30, 1978 July 1, 1979 to June 30, 1980 ............. $ 27,066 July 1, 1978 to June 30, 1979 . .$ 21,314 July 1, 1980 to June 30, 1981 .............. 33,469 July 1,1979 to June 30, 1980 . .27,191 July 1, 1981 to June 30, 1982 ................ 44,000 July 1, 1980 to June 30, 1981 . .. 33,344 July 1,1982 to June 30, 1983 .......... ... 58,378 July 1, 1981 to June 30, 1982 . ....... 43,664 July 1, 1983 to June 30, 1984 ........ ....... 78,298 July 1, 1982 to June 30, 1983 . .57,943 July 1, 1984 to June 30, 1989 ................ 714,823 July 1,1983 to June 30, 1988 . .598,830 July 1, 1989 to June 30, 1994 .......... ..... 1,191,973 July 1, 1988 to June 30, 1993 . .957,438 July 1, 1994 to June 30, 1999 ................ 1,876,122 July 1, 1993 to June 30, 1998 . . . 1,559,699 July 1, 1999 to June 30, 2004 ................ 2,301,082 July 1, 1998 to June 30, 2003 . .1,862,031 July 1, 2004 to June 30, 2009 ....... . ....... 2,301,262 July 1, 2003 to June 30, 2008 . .1,862,032 July 1, 2009 to June 30 2014 ....... ........ 2,267,055 July 1, 2008 to June 30, 2013 . . . 1,845,218 July 1, 2014 to June 30 2019 ....... ....... 2,065,205 July 1, 2013 to June 30, 2018 . . . 1,669,812 July 1, 2019 to June 30, 202 4 . ............. 1,663,318 July 1, 2018 to June 30, 2023 . .1,355,075 July 1, 2024 to June 30, 2029 .... __ ..... .. 617,927 July 1, 2023 to June 30, 2028 . . . 455,637 Total ............ ................ $15,239,978 Total. . .. $12,349,228 174 IDA Appendices Statement of Voting Power, and Subscriptions and Supplementary Resources June 30, 1979 and June 30, 1978 Expressed in thousands of units of currency-see Notes to Financial Statements, Appendix F Amounts of subscriptions and supplementary resources under the Amounts of subscriptions fourth and Total subscriptions and supplementary resources fifth re- and supplementary Voting power through the third replenishment plenishments resources(') Expressed Expressed Expressed in in in current current current Expressed in Un ited Un ited United Number Percent special drawing States States States Percent Members(') of votes of total rights(') dollars dollars dollars of totalI Part I Members Australia, 52,652 1.50 SDR 111,980 $135,491 $ 229,465 $ 364,956 1.98 Austria ........ ... 21,822 .62 34,560 41,801 98,767 140,568 .76 Belgium .........- 42,397 1.21 77,700 93,870 241,416 335,286 1.82 Canada ...... ..... 137,025 3.90 304,530 368,193 652,530 1,020,723 5.54 Denmark. ......... 34,353 .98 70,840 85,866 152,332 238,198 1.29 Finland. ....... - 18,404 .52 22,448 27,164 63,666 90,830 .49 France. . .--..~....... 138,669 3.95 362,032 437,601 721,474 1,159,075 6.29 Germany, Federal Republic of.. 236,831 6.75 476,560 575,902 1,673,568 2,249,470 12.21 Iceland...... ....... 7,802 .22 550 667 1,674 2,341 .01 Ireland. .... ..... 10,393 .30 7,030 8,521 18,001 26,522 .14 Italy .... .. -... 69,910 1.99 193,240 235,459 122,982 358,441 1.95 Japan. . . ....- 201,476 5.74 285,320 344,740 1,590,498 1,935,238 10.50 Kuwait...... .. .... 37,613 1.07 22,920 27,731 237,165 264,896 1.44 Luxembourg ..... ..... 8,363 .24 2,550 3,079 7,074 10,153 .06 Netherlands..... ...... 70,182 2.00 141,080 170,589 427,950 598,539 3.25 New Zealand... . 10,413 .30 - - 22,935 22,935 .12 Norway ..... .... . 30,464 .87 49,320 59,578 140,470 200,048 1.09 South Africa ... .... . 12,445 .35 20,080 24,264 17,286 41,550 .23 Sweden...... ....... 93,315 2.66 206,225 249,699 463,667 713,366 3.87 United Kingdom. . ..... 263,576 7.51 694,300 839,850 1,444,635 2,284,485 12.40 United StateS4)4'.. 722,211 20.58 2,072,290 2,505,515 3,100,000 5,605,515 30.42 Totals. . . ~.~~.....2,220,316 63.27 SDR5,155,555 $6,235,580 $11,427,555 $17,663,135 -95.86 Part 1I Members Afghanistan(5).. .... 10,084 .29 SDR 1,049 $ 1,346 $ 67 $ 1,413 .01 Algeria ....... .. 18,481 .53 4,186 5,371 211 5,582 .03 Argentina .... ...... 59,655 1.70 19,720 25,321 378 25,699 .14 Bangladesh ......... 22,239 .63 5.589 7,171 186 7,357 .04 Benin ........ .. 600' .02 500 641 - 641 (6) Bolivia ......... .. 10,230 .29 1,101 1,413 55 1,468 .01 Botswana. .. .... 5,950 .17 166 213 5 218 (6) Brazil.. .......... 59,655 1.70 19,720 25,301 388 25,689 .14 Burma. ........ 12,922 .37 2,099 2,693 90 2,783 .02 Burundi.. ...... 9,407 .27 790 1,013 36 1,049 .01 Cameroon.. - ... . 7,771 .22 1,049 1,342 37 1,379 .01 Cape Verde .... .. . . 516 .01 80 103 - 103 (t) Central African Empire .. . . 6,685 .19 519 666 18 684 (6) Chad. ..~.~. .... .... 2,093 .06 519 666 - 666 (4) Chile..... __.... . 17,113 .49 3,667 4,707 27 4,734 .03 China, Republic of .. ... . 91,311 2.60 31,436 40,331 1,665 41,996 .23 Colombia ........... 17,132 .49 3,717 4,768 177 4,945 .03 Comoros ..... _ ... 5,774 .16 83 107 3 110 (6) Congo, People's Republic of the 6,685 .19 519 666 18 684 (6) Costa Rica ...... .... 7,844 .22 208 266 10 276 (6) Financial Statements 175 Appendix E International Development Association Amounts of subscriptions and supplementary resources under the Amounts of subscriptions fourth and Total subscriptions and supplementary resources fifth re- and supplementary Voting power through the third replenishment plenishments resourcesW3' Expressed Expressed Expressed in In In current current current Expressed in United United United Number Percent special drawing States States States Percent Members() of votes of total rights(') dollars dollars dollars of total Part 11 Members (continued) Cyprus ................... 9,407 .27 SDR 790 $ 1,013 $ 41 $ 1,054 .01 Dominican Republic ........... 8,426 .24 436 557 66 623 (6 Ecuador ................. .. 2,200 .06 676 865 - 865 (6) Egypt, Arab Republic of ........ 21,403 .61 5,277 6,770 148 6,918 .04 El Salvador ................... 6,244 .18 331 425 11 436 (6) Equatorial Guinea ............. 1,967 .06 332 426 - 426 (6) Ethiopia ................... 8,691 .25 539 692 26 718 (6) Fiji ..... .............. 2,130 .06 581 746 - 746 (6) Gabon ................... 2,093 .06 519 666 - 666 (6) Gambia, The ............. 6,182 .18 277 356 9 365 (6, Ghana .................. 10,711 .31 2,452 3,146 36 3,182 .02 Greece ................... 14,288 .41 2,618 3,203 115 3,318 .02 Grenada ................... 7,537 .21 94 120 4 124 (6) Guatemala .......... ... 8,417 .24 415 533 21 554 (6, Guinea ............ ....... 7,771 .22 1,049 1,347 36 1,383 .01 Guinea-Bissau ................ 528 .02 140 180 - 180 (6) Guyana ................... 9,553 .27 842 1,080 38 1,118 .01 Haiti .... ............... 9,407 .27 790 1,013 40 1,053 .01 Honduras ................... 6,242 .18 311 400 13 413 (6) India ....... ............ 119,375 3.40 41,919 52,558 2,125 54,683 .30 Indonesia .................. 38,128 1.09 11,531 14,794 385 15,179 .08 Iran ................... 15,455 .44 4,717 5,690 162 5,852 .03 Iraq ..... .............. 9,407 .27 790 1,013 40 1,053 .01 Israel ................... 9,386 .27 1,745 2,111 323 2,434 .01 Ivory Coast ................... 7,771 .22 1,049 1,345 37 1,382 .01 Jordan ................... 6,242 .18 311 376 12 388 (6) Kampuchea, Democratic ....... 7,826 .22 1,060 1,360 5 1,365 .01 Kenya . .. 11,960 .34 1,745 2,234 86 2,320 .01 Korea, Republic of ......... .. 10,932 .31 1,309 1,679 1,039 2,718 .02 Lao People's Dem. Rep ...... . 8,688 .25 519 666 6 672 (6) Lebanon .................. 8,562 .24 467 598 20 618 (6) Lesotho .................. 7,747 .22 166 213 7 220 (6, Liberia .................. 9,407 .27 790 1,013 40 1,053 .01 Libya .............. .... 7,771 .22 1,049 1,346 37 1,383 .01 Madagascar .................. 702 .02 1,010 1,295 - 1,295 .01 Malawi ... ........ ....._ 9,407 .27 790 1,013 41 1,054 .01 Malaysia .................. 14,288 .41 2,618 3,359 142 3,501 .02 Maldives .................. 7,382 .21 31 40 2 42 (6) Mali .................. 7,479 .21 904 1,159 32 1,191 .01 Mauritania ........ .......... 6,685 .19 519 666 17 683 (6) Mauritius .................. 9,702 .28 924 1,182 45 1,227 .01 Mexico ................... 9,253 .26 8,740 10,966 132 11,098 .06 Morocco ...... ............ 17,113 .49 3,667 4,705 203 4,908 .03 Nepal .................. 8,688 .25 519 666 24 690 (6) Nicaragua ................. 6,242 .18 311 385 11 396 (6) (co ntinused) 176 IDA appendices Statement of Voting Power, Appendix E International Development and Subscriptions Association and Supplementary Resources(concluded) June 30, 1979 and June 30, 1978 Expressed in thousands of units of currency-see Notes to Financial Statements, Appendix F Amounts of subscriptions and supplementary resources under the Amounts of subscriptions fourth and Total subscriptions and supplementary resources fifth re- and supplementary Voting power through the third replenishment plenishments resources(3) Expressed Expressed Expressed in in in current current current Expressed in United United United Number Percent special drawing States States States Percent Members(') of votes of total rightsR) dollars dollars dollars of total Part 11 Members(continued) Niger ....................... 6,685 .19 SDR 519 $ 666 $ 18 $ 684 (6) Nigeria ....... .......I.... .. 4,057 .12 3,491 4,442 - 4,442 .02 Oman . .... ....... 6,244 .18 331 423 11 434 (6) Pakistan . ...... 35,355 1.01 10,582 13,576 529 14,105 .08 Panama .................. 5,657 .16 21 26 1 27 (6) Papua New Guinea .. .... 9,698 .28 894 1,147 45 1,192 .01 Paraguay . ........... 6,242 .18 311 399 11 410 (6) Peru . .............. 854 .02 1,770 2,270 - 2,270 .01 Philippines . ......... 16,583 .47 5,296 6,793 274 7,067 .04 Rwanda ................. ... 9,407 .27 790 1,013 37 1,050 .01 Sao Tome and Principe ........ 514 .01 70 90 - 90 (6) Saudi Arabia . . 46,844 1.33 3,700 4,746 363,555 368,301 2.00 Senegal.......... .......... 11,960 .34 1,745 2,239 91 2,330 .01 Sierra Leone . ....... .. . 9,407 .27 790 1,013 28 1,041 .01 Somalia .................... 7,246 .21 790 1,013 28 1,041 .01 Spain........ ............ 29,746 .85 12,590 15,197 10,752 25,949 .14 Sri Lanka . .... ..... 15,705 .45 3,148 4,038 68 4,106 .02 Sudan .................... 10,084 .29 1,049 1,342 38 1,380 .01 Swaziland . ........... 8,193 .23 332 426 15 441 (6) Syrian Arab Republic . . .... 7,651 .22 987 1,266 34 1,300 .01 Tanzania . ...... .... 11,960 .34 1,745 2,239 78 2,317 .01 Thailand . . 15,705 .45 3148 4,038 156 4,194 .02 Togo ..... .................. 7,246 .21 790 1,013 28 1,041 .01 Trinidad and Tobago . ..... 770 .02 1,350 1,732 - 1,732 .01 Tunisia . . .......... 2,793 .08 1,569 2,013 - 2,013 .01 Turkey . ............ 23,450 .67 6,086 7,807 131 7,938 .04 Uganda . ........... 11.960 .34 1,745 2,239 86 2,325 .01 Upper Volta ............ .... 6,685 .19 519 666 18 684 (6) Viet Nam ...... . 8,889 .25 1,569 2,013 33 2,046 .01 Western Samoa . . 7,537 .21 94 120 3 123 (6) Yemen Arab Republic .. . 8,494 .24 446 573 22 595 (6) Yemen, People's Dem. Rep. of.. 10,591 .30 1,226 1,573 62 1,635 .01 Yugoslavia . ....... ... 20,711 .59 8,080 9,765 11,807 21,572 .12 Zaire . ..............__ ... 12,164 .35 3,138 4,025 36 4,061 .02 Zambia ........ .... .... 1,038 .03 2,690 3,450 - 3.450 .02 Totals .... ....... 1,289,067 36.73 SDR 287,787 $ 365,466 $ 396,943 $ 762,409 4.14 Grand Totals-June 30, 1979. .. 3,509.383 100.00 SDR5,443,342 $6,601,046 $11,824,498 $18,425,544 100.00 Grand Totals-June 30, 1978 ... 3,329,495 SDR5,443,107 $6,580,430 $10,317,633 $16,898,063 (') See Appendix F-Note A, for an explanation of the two categories of members. (2) The Association has expressed its subscriptions and supplementary resources in special drawing rights with effect from April 1, 1978. ') I ncludes $1,9S5,224,000 ($3,984,025,000-1978) equivalent in current United States dollars which is not yet due and is payable by the respective members on various dates through fiscal year 1981. (See Appendix F-Note E.) (4) Votes are adjusted in respect of the first and second instalments of the fifth replenishment only. (See Appendix F-Note E.) 5') Theequivalentof$16,000 has been received from Afghanistan on account of its subscription under the fifth replenishment pendingformal approval of notes. (') Less than .005 percent. Financial Statements 177 Notes to Financial Statements Appendix F International Development Association June 30, 1979 and June 30, 1978 Summary of Significant Accounting and require approval of the Executive Directors and would involve Related Policies other changes in the development credit agreements. Translation of Currencies The General Counsel has, however, also stated that in the The Association is an international organization which con- exercise of their statutory power under Article X of the duct it opratonsin he urrncis o al ofitsmemers Association's Articles, the Executive Directors could con- and Switzerland. The Association's policy is to translate its cueta h 90dla ol etknt en$.03 assets and liabilities in currencies other than United States current dollars, with the consequence that maintenance of dollars at market rates of exchange to the United States value would be measured by that standard. dollar at the end of each quarter. Translation adjustments Pending action on this matter by the Executive Directors, relating to subscriptions and supplementary resources are the subscriptions and supplementary resources through the accounted for as described in Note C; all other translation third replenishment have been expressed in SDRs on the adjustments are included in the determination of net income. basis that one SDR equals one 1960 dollar. This basis has Income and expenses are translated at an average of the not been applied to development credit repayment obliga- market rates of exchange in effect during each quarter. tions however, as described in the following paragraph. The The subscriptions and supplementary resources provided value of such subscriptions and supplementary resources under the first three replenishments are expressed in terms has been expressed on the basis of the SDR in terms of of "United Statesdollars ofthe weightand fineness in effect United Statesdollarsascomputed bythe Fund($1.29110 per on January 1, 1960" (1960 dollars) and from 1973 until March SDR) on June 30, 1979, for the amounts of subscriptions and 31, 1978 have been translated by the Association, for pur- supplementary resources undisbursed at June 30, 1979; at poses of the financial statements, into current United States the daily SDR rate for amounts disbursed from the effective dollars at the rate of $1.20635 per 1960 dollar. The supple- date of the Second Amendment to June 30, 1979, and at the mentary resources provided under the fourth and fifth rate of $1.20635 per 1960 dollar for amounts disbursed prior replenishments are expressed and payable in members' to the effective date of the Second Amendment. Expressing currencies and are translated (1) at market rates of exchange the value of certain of the Association's subscriptions and at the end of each quarter for amounts receivable and for supplementary resources in terms of the SDR rather than in amounts received and not yet disbursed, and (2) at market terms of the 1960 dollar (translated at the rate of $1.20635) rates of exchange on the dates of disbursement in respect of as described in the preceding paragraph does not have a those amounts which have been disbursed or converted into material effect on the financial position or results of opera- another currency. The Association's development credits are tions of the Association. If the value of these subscriptions denominated in current United States dollars. However, and supplementary resources were expressed in terms of under the Association's General Conditions Applicable to $1.20635 the amount of $16,460,320,000 shown in the State- Development Credit Agreements, the principal amounts of ment of Condition would have decreased by $33,008,000 the credits disbursed are repayable in amounts equivalent, to $16,427,312,000. at the dates of repayment, to the value of the currencies Pending clarification of the effect of the Second Amendment disbursed in terms of 1960 dollars. edn lrfcto fteefc fteScn mnmn on the payment obligations under its development credit On April 30, 1976, the Board of Governorsof the International agreements, the Association has continued to base these Monetary Fund (the Fund) approved proposed amendments upon the par value ($1.20635 per 1960 dollar) in effect im- to the Fund's Articles of Agreement (the Second Amend- mediately prior to effectiveness of the Second Amendment. ment) which entered into force on April 1, 1978. Under the If the matter had been resolved during the year ended June Second Amendment, currencies no longer have par values, 30, 1979, and the Association had expressed its develop- gold is abolished as a common denominator of the monetary mentcreditsintermsof theSDRatJune3O, 1979,theamount system and all calculations for the purposes of the Fund's of $15,239,978,000 shown in the Staternent of Condition Articles are made on the basis of the special drawing would have increased by $599,452,000 as of June 30, 1979 right (SDR). representingthe cumulative effectof thechange since April 1, As a result of the Second Amendment and the simultaneous 1978. This mould have resulted in net income for the year repeal of Section 2 of the Par Value Modification Act (31 ended June 30, 1979 of $553,557,000 rather than a net loss U.S.C. 449), the provision of United States law defining the of $45,895,000. par-value of the United States dollar in terms of the SDR and Investments gold, the pre-existing basis for translating the term "United States dollar of the weight and fineness in effect on January 1, Investment securities are recorded at cost or amortized cost. 1960" into current United States dollars or into any other -Gains or losses on sales of investments, measured by the 1960"ncy, no curren istes difference between average cost and proceeds of sales, are currency, no longer exists, recorded as an element of income from investments. The General Counsel of the Association has rendered a legal opinion concluding in substance that upon the entry into Development Credits force of the Second Amendment references in the Associa- All of the Association's development credits are made to tion's Articles of Agreement to the 1960 dollar should be read member governments or to the government of a territory of a as referring to the SDR, as determined from time to time by member. The Association has not suffered any losses on the Fund and the mutual obligations of each member and developmentcreditreceivablesand nolossesareanticipated. the Association with respect to maintenance of value of However, should such losses arise they would be included in certain currency holdings will be measured by the value of the determination of net income. the currency in question in terms of the SDR at any given time. It would be consistent with this opinion also to sub- Administrative Expenses stitute the SDR for the 1960 dollar as the measure of the Administrative expenses of the Association are paid by the development credit repayment obligation but this would International Bank for Reconstruction and Development(the (continued) 178 IDA Appendices Notes to Financial Statements (continued) June 30, 1979 and June 30, 1978 Bank). The Association reimburses the Bank for such ex- The provisions of Article IV, Section 2 have by agreement penses by payment of a management fee representing its been extended to cover additional subscriptions and supple- share of the administrative expenses incurred by the Bank. mentaryresourcesoftheAssociationthroughthethird replen- ishment but are not applicable to those of the fourth and fifth Note A-Restricted Currencies replenishments. On June 19, 1972, the Executive Directors The membership of the Association is divided into two cate- resolved that for all members that established central rates gories: (1) Part I members, which pay all subscriptions and for their respective currencies, pending establishment of new supplementary resources provided to the Association in con- par values for their currencies, maintenance of value obliga- vertible currencies which may befreely used or exchanged by tions be settled on the basis of those central rates. It was the Association in its operations;(2) Part I I members, which further decided that with respect to any member currency pay ten percent of their initial subscriptions in freely con- functioning under a system under which the market rate was vertible currencies and the remaining ninety percent of their notconfined within announced intervention margins, mainte- initial subscriptions and all additional subscriptions and any nance of value obligations would be determined on the basis supplementary resources provided to the Association in their of market rates in effect on the respective dates of disburse- own currencies. The Articles of Agreement of the Association ment of such currency, but only for the amounts disbursed. and subsequent replenishment agreements provide that the currency of any Part II member paid in by it may not be used Prior to April 1, 1978, where market rates of exchange were by the Association for projects financed by the Association not related to par values or central rates as in the cases of a and located outside the territories of the member except by majority of the members, and there were differences between agreement between the member and the Association. The market rates of exchange and the rates at which undisbursed amounts of $55,713,000($59,120,000-1978) under the head- subscriptions and supplementary resources of members ing Due from Banks, $154,790,000 ($157,911,000-1978) through the third replenishment of the Association's re- included under the heading Receivable on Account of Sub- sources had been paid or were payable, such differences scriptions and Supplementary Resources and $72,759,000 were shown as Translation Adjustments on Subscriptions ($54,174,000-1978) included in Notional Amounts Required and Supplementary Resources under the heading Other to Maintain Value of Currency Holdings under the headings Assets. The amounts $94,300,000($82,268,000-1978) estab- Other Assets and Other Liabilities respectively, were subject lished at that date and accordingly at June 30, 1979 repre- to such restrictions. sented notional receivables $99,094,000($87,103,000-1978) and payables $4,794,000 ($4,835,000-1978). Maintenance Note B-Investments of value obligations in respect of such undisbursed amounts The market value of investment securities was $159,564,000 are determined upon their disbursement. In accordance with ($203,267,000-1978) compared with a cost or amortized the legal opinion of the Association's General Counsel cost of $160,685,000 ($205,386,000-1978) and face value of referred to above, maintenanceof value pursuantto Article IV, $161,682,000 ($206,066,000-1978), including investments Section 2 of the Articles of Agreement is being determined not traded in the market which were valued at their cost of provisionally on the basis of the SDR, and is treated in the $34,329,000 ($27,670,000-1978). Investments include secu- financial statements on that basis. Since the Association is rities purchased under agreements to resell amounting to still considering the implications of the Second Amendment, $6,921,000 ($3,272,000-1978). and in view of the questions referred to above,thetimingof Note C-Maintenance of Value any establishment and settlement of these notional mainte- Article IV, Section 2 of the Association's Articles of Agree- nance of value items is uncertain. Accordingly, they are in- ment provides for the maintenance of the value, as of the cluded in Other Assets, and Liabilities as notional mainte- time of subscription, of the Association's currency holdings nance o value obigations. or demand obligations substituted therefor representing Note D-Borrowings from Swiss Confederation ninety percent of each member's initial subscription, only so The Association has entered into agreements to borrow a long as and to the extent that such currency has not been total of SwF 182 million (US equivalent $109,428,000-1979; initially disbursed or exchanged for the currency of another $98,140,000-1978) from the Swiss Confederation. The first member. This Section requires: (1) the member to make loan for SwF 52 million was made in fiscal year 1967 and the additional payments to the Association in the event that the second loan for SwF 130 million was made in fiscal year 1973. par value of its currency is reduced or the foreign exchange The loans carry no interest and are each repayable in forty value of its currency has, in the opinion of the Association, annual instalments commencing on July 1, 1979, in the case depreciated to a significant extent in its territories and (2) of the first loan, and November 8, 1983 in the case of the the Association to reimburse the member in the event that second loan. The firstten instalments of each loan will be one the par value of its currency is increased or the foreign ex- percent of the respective principal amounts and the remain- change valueof itscurrency has, intheopinion of theAssoci- ing thirty instalments will be three percent of such princi- ation, appreciated to a significant extent in its territories. pal amounts. Financial Statements 179 Appendix F International Development Association Note E-Subscriptions and Supplementary Resources Subscriptions and supplementary resources have been translated as set forth under Summary of Significant Accounting and Related Policies. At June 30, 1979 and 1978 these were as follows: 1979 1978 Expressed in United States Dollars (in thousands) Initial subscriptions and first three replenishments: Subscriptions (SDR 1,065,338-1979, SDR 1,065,103-1978) . ........................ $ 1,303,262 $ 1,291,205 Supplementary resources (SDR 4,378,004-1979, SDR 4,378,004-1978) .................................... 5,297,784 5,289,225 $ 6,601,046 6,580,430 Fourth and fifth replenishments: Subscriptions .......................................... $ 48,957 46,570 Supplementary resources .................................... 11,775,541 10,271,063 $11,824,498 10,317,633 Less-Portion for which payment is not yet due . ....... 1,965,224 3,984,025 9,859,274 6,333,608 Totals . ............. ....... .$16,460,320 $12,914,038 The aggregate amounts not yet due, will be due as follows: June 30, 1979 June 30, 1978 Fiscal years Amounts (in thousands) 1979 ....... ...... .. ....... . ........ ....... $ - $ 2,241,713 1980 . . 1,949,301 1,736,676 1981 ............. .... .... ....... ....... 15,923 5,636 $ 1,965,224 $3,984,025 The fifth replenishment of the Association's resources be- drawn from this instalment, unless the credits are qualified came effective on November 29, 1977. At that date notifica- in a manner whereby they become effective and binding on tions had been received from 17 members, of which 14 were the Association only when unqualified notifications covering Part I members (including the United States, as mentioned atleasteighty percentof the instalment have been deposited. in the following paragraph) and a non-member, the United At June 30, 1979 rates of exchange, unqualified notifications Arab Emirates,thatthey would contributetothefifth replen- totaled approximately $1,937,000,000 or about seventy-one ishment the amount of $6,042,010,000, computed at the percent of the third instalment. March 14, 1977 International Monetary Fund representative Note F-Transfers from International Bank rates of exchange. Subsequent to November 29, 1977, but for Reconstruction and Development prior to June 30, 1979, further notifications were received The International Bank for Reconstruction and Development from Part I members, whose contributions aggregated the has authorized transfers by way of grants to the Association equivalent of $1,378,391,000. The contributions to the fifth totaling $1,325,000,000 ($1,225,000,000-1978) from net replenishment authorized under the Board of Governors' income of the Bank for the fiscal years ended June 30, resolution plus an additional amount for a contribution pledged 1964 through June 30, 1978. Of this amount, $47,325,000 by Saudi Arabia totaled the equivalent of $7,731,701,000 at ($35,400,000-1978) may be used by the Association or had the March 14, 1977 representative rates of exchange. The been disbursed for grants for agricultural research and for total value of all authorized contributions to the replenish- the control of onchocerciasis. During the periods covered by ment was the equivalent of $8,601,823,000 at June 30, 1979. these financial statements $25,000 ($650,000-1978) pre- Pursuant to the resolution, contributions are payable in the viously allocated for such grants has reverted to the Associa- members' currencies and are due in three equal annual tion for its general purposes. instalments unless contributing members notify the Associa- tion that they wish to avail themselves of certain options Note G-Translation Adjustments providing for a different mode of payment. In accordance with the policies discussed in the Summary of Significant Accounting and Related Policies the Association In connection with its participation inthefifth replenishment has recorded translation adjustments for the current fiscal the United States has notified the Association that it would year of $8,025,000 ($23,279,000-1978) representing net pay the amount of $1,600,000,000 (representing the firsttwo charges of $7,294,000 ($22,584,000-1978) as a result of of three equal annual instalments of its contribution totaling currency depreciations and appreciations [including $2,400,000,000) and that, subject to obtaining the necessary $11,288,000 ($24,183,000-1978) of charges on the Swiss appropriations, it would pay the remaining $800,000,000. The Confederation borrowings] and charges of $731,000 ($695,000 notification by the United States is thus qualified with -1978) representing the effect of the valuation change to respect to $800,000,000 of its contribution. The resolution the SDR on that portion of the Association's subscriptionsand provides that unless unqualified notifications are received supplementary resources paid in United States dollars. covering in the aggregate at least eighty percent of the third Since the value of the SDR in terms of current dollars may instalment(which cannot be achieved without an unqualified vary from day to day, the portion of the Association's sub- notification by the United States), the Association may not scriptions and supplementary resources paid in dollars will be enter into new credits, disbursements for which would be subject to further adjustment at the end of each quarter. 180 IDA Appendices Report of Financial Statements Independent Accountants Covered by the Foregoing Report 1801 K STREET, N.W. WASHINGTON, D.C. 20006 JULY 31, 1979 To INTERNATIONAL DEVELOPMENT ASSOCIATION WASHINGTON, D.C. We have examined the accompanying financial statements Statement of Condition .... ........ Appendix A (Appendices A through F) of International Development Association for the years ended June 30, 1979 and 1978. Our Statement of Income.Appendix B examinations of these statements were made in accordance Statement of Transfers with generally accepted auditing standards and accordingly from International Bank for included such tests of the accounting records and such other Reconstruction and Development .... Appendix B auditing procedures as we considered necessary in the circumstances. Statement of Changes in Resources Available for Commitment. ... .. Appendix C As described in the Summary of Significant Accounting and Related Policies in the notes to these financial statements, Summary Statement of management believes that it would be consistent with Gen- Development Credits ...... . ..... .... Appendix D eral Counsel's opinion with respect to the valuation of certain Statement of Voting Power, of the Association's subscriptions and supplementary re- and Subscriptions and sources, to also substitute the special drawing right (SDR) Supplementary Resources .......... . .... Appendix E for the 1960 dollar as the measure of the development credit repayment obligations of the Association's borrowers. How- Notes to Financial Statements ............ ... Appendix F ever, this would require approval of the Executive Directors and involve other changes in the development credit agree- ments. Accordingly, until these events have occurred, the repayment obligations will not be revalued. In our opinion, subject to the effects, if any, which may result upon the resolution of the matter referred to in the preceding paragraph, the financial statements examined by us present fairly, in terms of United States currency, the financial position of International Development Association as of June 30, 1979 and 1978, the results of its operations and changes in resources available for commitment for the years then ended, in conformity with generally accepted accounting principles consistently applied. PRICE WATERHOUSE & CO. 181 Bank/IDA Appendices Page 1 Bank and IDA Cumulative Lending Operations, by Major Purpose and Region, June 30, 1979 .......................... 182 2 Bank and IDA Cumulative Lending Operations, by Country, June 30, 1979 ............................................ 184 3 Statement of Loans Approved during Fiscal Year 1979 .......... 186 4 Statement of Development Credits Approved during Fiscal Year 1979 ......... ................................... 191 5 Administrative Budgets of the Bank and IDA .................. 195 6 Governors and Alternates of the Bank and IDA ............... . 196 7 Executive Directors and Alternates of the Bank and IDA ........ 198 8 Officers and Department Directors of the Bank and IDA ........ 199 9 World Bank Offices . . ...................... .............. 200 182 Bank/IDA Appendices Bank and IDA Cumulative Lending Operations, by Major Purpose and Region, June 30, 1979 (US$ millions) Bank loans to borrowers, by regiori Euro0pe, Middle Latin East East, an d Amer ica Asia Eastern Western North and the and South Purpose.0) Africa Africa Africa Caribbean Pacific Asia Total AGRICULTURE AND RURAL DEVELOPMENT Agriculture sector loan..... ...... $ 5.6 $ 9.0 $ 2.3 $ 22.7 $ 4.3 $ 26.3 $ 70.2 Agricultural credit ...... ...... 5.0 3.5 867.5 325.4 112.5 - 1,313.9 Area development . ..... . . . 144.5 236.0 260.0 732.6 618.0 197.0 2,188.1 Fisheries ..... -.....- - 48.0 16.2 45.8 14.0 124.0 Irrigation, flood control . ...78.2 32.0 1,098.5 660.3 1,576.5 149.0 3,594.5 Livestock .. .. ..... 11.8 32.6 146.0 903.0 48.0 10.0 1,151.4 Crop processing, storage. .... - - 230.9 272.8 45.8 - 549.5 Perennial crops .........57.4 326.0 10.0 30.0 207.5 - 630.9 Research and extension ...- - 12.7 199.0 154.0 25.0 390.7 Forestry ......48.5 49.0 136.0 22.0 8.5 - 264.0 Subtotal.. -... 351.0 688.1 2,811.9 3,184.0 2,820.9 421.3 10,277.2 EDUCATION ... 117.0 131.6 679.4 364.1 446.2 - 1,738.3 ENERGY. . . . .. ......20.0 - 217.9 - 4.9 229.2 472.0 INDUSTRIAL DEVELOPMENT AND FINANCE 150.0 131.4 1,792.0 1,280.0 1,291.C 826.2 5,470.6 INDUSTRY Fertilizer and chemicals,. ..... . .. - 218.3 326.0 185.0 481.0 1,210.3 Engineering ...... .-.....11.0 - 10.0 - 21.0 Iron and steel. - ..-... .283.5 662.0 - 189.0 1,134.5 Industry sector loan ...... ...0.6 646.4 97.5 272.4 - 1,016.9 Coal ........21.8 - 54.5 76.3 Small industry.. . ....60.0 131.0 - 34.8 225.8 Mining, other extractive... . I... . 137.5 131.0 158.3 148.0 - - 574.8 Pulp and paper..... ......30.0 - 110.0 20.0 - 4.2 164.2 Textiles........ . . 63.0 - 102.0 - - - 165.0 Subtotal.... .... . . 230.5 191.6 1,660.5 1,275.3 502.2 728.7 4,588.8 NONPROJECT .. ...... ..... 160.0 80.0 1,244.613) 268.0 483.5 - 2,236.1 POPULATION AND NUTRITION.. ... - - 16.5 60.8 84.5 - 161.8 POWER .. .. ... .697.0 338.0 2,166.2 4,482.5 2,046.0 497.7 10,227.4 TECHNICAL ASSISTANCE . ........ - - 4.3 24.3 13.0 - 41.6 TELECOMMUNICATIONS. ........ 121.6 54.3 213.8 349.3 231.3 227.5 1,197.8 TOURISM...... ... ....17.0 37.5 96.6 187.5 25.0 - 363.6 TRANSPORTATION Airlines and airports .. .. 49.0 10.0 7.0 160.5 9.2 5.6 241.3 Highways ..328.7 403.7 1,373.1 2,281.1 1,632.1 39.9 6,058.6 Pipelines...... ....... ... - - 57.5 23.3 - 37.0 117.8 Ports and waterways ... ..I.. . . 84.9 172.3 813.8 204.6 411.3 109.8 1,796.7 Railways.. ....~..... ..... . 367.2 164.5 694.5 952.5 654.4 555.1 3,388.2 Transportation sector loan ...28.0 25.0 12.0 30.0 - - 95.0 Subtotal .......... ...... 857.8 775.5 2,957.9 3,652.0 2,707.0 747.4 11,697.6 URBAN DEVELOPMENT .....61.0 44.0 90.0 390.5 277.1 25.0 887.6 WATER SUPPLY AND SEWERAGE ....... 122.6 164.5 764.4 819.2 466.1 - 2,336.8 TOTAL.$ ........... !2,905.5 $2,636.5 $14,716.0 $16,337.5 $11,398.7 $3,703.0 $51,697.2 (3) Except for the total shoevfl in footnete 4, no account is token of cancellations and refundings subsequent to original commitment; amounts of cancellations and refundings ore shown by country ond purpose in the Stotements of Loons and of Development Credits,whichr ore available on requesf. yank eoans of $550 million to IfFG ore excluded. (0) Operations hove hoesn classitied by the major purpxse they finance. Many projects include activity in more thon one sector or sxbsector. (3) fooluodes $407 million in Europeon reconstructiori eoans mode before 1952. (5) Concellations, terminations, and relundings total $1,660.7 million. This figure includes $46.1 million of loans and 0175.0 million of credits made to Pakistan in earlier yearsfer develoyment projects in its formter eostern wing, now Bangladesh. The loans ann credits mere reactivated, in revised form, as commitments to Bangladesh. Bank/liDA Appendices 183 Appendix 1 IDA credits to borrowers, by region(' Europe, Middle Latin East East, and Ame rica Asia Eastern Western North and the and South Total Africa Africa Africa Caribbean Pacific Asia Total Bank and IDA $ 13.0 $ 4.5 $ - $- $ 7.5 $71.0 $ 96.0 $ 166.2 34.6 26.4 96.2 18.5 53.7 845.1 1,074.5 2,388.4 327.2 181.5 48.7 32.0 156.9 442.5 1,188.8 3,376.9 15.0 1.3 17.1 - 10.0 30.7 74.1 198.1 171.9 109.4 310.2 18.5 181.2 1,143.0 1,934.2 5,528.7 158.9 66.5 49.5 67.5 10.6 90.6 443.6 1,595.0 89.3 - 18.0 - - 287.7 395.0 944.5 104.8 106.1 15.0 - 121.8 81.0 428.7 1,059.6 25.5 - - - - 189.5 215.0 605.7 21.1 15.0 - - - 52.7 88.8 352.8 961.3 510.7 554.7 136.5 541.7 3,233.8 5,938.7 16,215.9 299.0 157.5 182.8 48.6 179.4 113.7 981.0 2,719.3 - - - - - 30.0 30.0 502.0 96.6 42.0 81.0 6.2 65.0 139.5 430.3 5,900.9 - - 21.4 - 35.0 451.0 507.4 1,717.7 - - - - - - - 21.0 - - - - - - - 1,134.5 - - 18.7 - - - 18.7 1,035.6 - - - - - - - 76.3 4.0 - 2.3 - 16.5 9.5 32.3 258.1 2.5 - - 7.5 - 16.0 26.0 600.8 32.0 - - - - - 32.0 196.2 20.0 - 7.0 - - - 27.0 192.0 58.5 - 49.4 7.5 51.5 476.5 643.4 5,232.2 15.0 - 35.0 9.0 - 2,131.6 2,190.6 4,426.7 12.0 - 39.6 - 86.3 68.2 206.1 367.9 76.8 35.4 102.9 82.8 111.0 1,268.8 1,677.7 11,905.1 22.0 20.9 - - 25.0 26.5 94.4 136.0 37.4 14.1 83.0 - 12.8 390.2 537.5 1,735.3 14.0 4.0 48.5 - 16.0 4.2 86.7 450.3 9.0 5.0 2.5 - - - 16.5 257.8 620.1 391.2 115.6 128.3 107.4 141.4 1,504.0 7,562.6 - - - - - - - 117.8 90.7 43.3 9.2 5.0 19.9 183.3 351.4 2,148.1 71.0 70.6 38.5 8.0 40.0 784.2 1,012.3 4,400.5 15.0 - - - - - 15.0 110.0 805.8 510.1 165.8 141.3 167.3 1,108.9 2,899.2 14,596.8 56.5 28.2 23.3 32.0 - 146.0 286.0 1,173.6 44.6 36.9 106.8 9.6 26.4 506.4 730.7 3,067.5 $2,499.5 $1,359.8 $1,472.8 $473.5 $1,282.4 $9,644.3 $16,732.3 $68,429.5(4) 184 Bank/IDA Appendices Bank and IDA Cumulative Lending Operations, by Country, June 30, 1979 (US$ millions) Bank loans IDA credits Total Country NumberM1 Amount NumberMi Amount Number(') Amount Afghanistan . . .... ............ - $ - 20 $ 230.1 20 $ 230.1 Algeria .................... 20 971.0 - - 20 971.0 Argentina ..... ... .......... 15 1,113.3 - - 15 1,113.3 Australia. ................ 7 417.7 - - 7 417.7 Austria ................... 9 106.4 - - 9 106.4 Bahamas .................. 1 10.0 - - I 10.0 Bangladesh(2). .. .. ....1 46.1 54 1,187.2 55 1,233.3 Barbados ................... 2 17.0 - - 2 17.0 Belgium .......... ........ 4 76.0 - - 4 76.0 Benin... . .. . . .. . . . . . . ..... - - 9 76.1 9 76.1 Bolivia ................... 13 249.3 12 79.8 25 329.1 Botswana .................. 8 92.3 6 15.8 14 108.1 Brazil ..... .............. 89 4,618.7 - - 89 4,618.7 Burma ................... 3 33.4 12 203.0 15 236.4 Burundi .................... 1 4.8 12 55.2 13 60.0 Cameroon ......... .......... 20 272.8 13 199.5 33 472.3 Caribbean Region. ............... 1 20.0 - - 1 20.0 Central African Empire ...... ....... - - 5 30.4 5 30.4 Chad(3)..................... - - 13 78.5 13 78.5 Chile. ........ ............ 23 361.2 - 19.0 23 380.2 China, Republic of ....... ........ 14 329.4 4 15.3 18 344.7 Colombia.................. . 81 2,243.4 - 19.5 81 2,262.9 Co moros ..... . . . . .. . .. . . .. . - - 1 5.0 1 5.0 Congo, People's Republic of the .... ..... 3 76.0 6 22.6 9 98.6 Costa Rica. ...... ........... 24 323.2 - 5.5 24 328.7 Cyprus.._................ 16 127.6 -- 16 127.6 Denmark ................... 3 85.0 - - 3 85.0 Dominican Republic ....... ........ 7 116.0 3 22.0 10 138.0 East African Community(') ..... ....... 10 244.8 - - 10 244.8 Ecuador ..................I 23 299.1 5 36.9 28 336.0 Egypt, Arab Republic of...... ....... 19 919.0 19 568.6 38 1,487.6 El Salvador.. ........... ... 18 216.1 2 25.6 20 241.7 Equatorial Guinea ....... ....... - - 1 2.0 1 2.0 Ethiopia ................... 12 108.6 24 368.1 36 476.7 Fiji .. . . . . . . . . . . . . . . . . 6 50.2 - - 6 50.2 Finland .... ........ .. .. . .. 18 316.8 - - 18 316.8 France..................... 1 250.0 - - 1 250.0 Gabon(5) .................. 6 69.3 - - 6 69.3 Gambia, The .. ..... . ........ - - 8 27.4 8 27.4 Ghana(6) ....... ..... ...... 9 207.0 12 124.5 21 331.5 Greece .............. ..... 17 490.8 - - 17 490.8 Guatemala......... .......... 11 260.5 - - 11 260.5 Guinea.............. ...... 3 75.2 5 42.6 8 117.8 Guinea-Bissau ........ ......... - - 1 9.0 1 9.0 Guyana. ........ .......... 9 56.5 3 28.5 12 85.0 Haiti ..................... 1 2.6 10 110.0 11 112.6 Honduras ............. .... 20 253.0 5 58.2 25 311.2 Iceland .... . . . .. . .. . .. . ._ 10 47.1 - - 10 47.1 India .................... 57 2,645.6 112 6,750.2 169 9,395.8 Indonesia .................. 44 2,476.0 42 757.8 86 3,233.8 Iran.. ... . .. . . . . . . . ... . .. 33 1,210.7 - - 33 1,210.7 Iraq. . .. . . . . . . . . . . . . . . . . 6 156.2 - - 6 156.2 Ireland..... . ... .. . . .. . . .. . 8 152.5 - - 8 152.5 Israel .. _ .. . . . . . .. . . . . . .. 11 284.5 - - 11 284.5 Italy . . . . . . . . . . . . . . . . . . .. 8 399.6 - - 8 399.6 Ivory CoaSt(6)(7).... ..... 30 515.2 1 7.5 31 522.7 Jamaica ....... .... .. ... 23 299.5 - - 23 299.5 Japan. ...... ...... .. ... 31 862.9 - - 31 862.9 Jordan .. ......... ... 2 50.0 15 85.3 17 135.3 Kenya........_... ...... 33 719.3 19 286.3 52 1,005.6 Korea, Republic of...._.. ....... 43 2,404.5 6 110.8 49 2,515.3 Lao People's Democratic Republic.... ..... - - 2 18.6 2 18.6 Lebanon .......... ..... 4 116.6 - - 4 116.6 Lesotho............ .... ... - - 9 50.2 9 50.2 Liberia. ....... ............ 18 119.0 6 44.0 24 163.0 Luxembourg ....... ..... .. 1 12.0 - - 1 12.0 Madagascar....._... .......... 5 32.9 12 207.2 17 240.1 Mlalawi ...... .._......... 3 29.2 19 170.0 22 199.2 Bank/IDA Appendices 185 Appendix 2 Bank loans IDA credits Total Country Number(') Amount Number() Amount Number(') Amount Malaysia ............................... 46 $ 1,082.6 - $ - 46 $ 1,082.6 M aldives ........................... .... - - 1 3.2 1 3.2 Malil3al7 ........ ............... ....... - 1.9 17 165.2 17 167.1 Malta .......... .................... 1 7.5 - - 1 7.5 Mauritania(3' .......................... 1 66.0 10 46.5 11 112.5 Mauritius ................... ............ 9 74.3 4 20.2 13 94.5 Mexico .... ........................... 59 3,813.6 - - 59 3,813.6 Morocco ............................... 38 1,233.3 3 50.8 41 1,284.1 Nepal . .............................. - - 19 202.7 19 202.7 Netherlands ............................... 8 244.0 - - 8 244.0 New Zealand .... ......................... 6 126.8 - - 6 126.8 Nicaragua .................... ........... 23 163.9 2 23.0 25 186.9 Niger(3) ........-...-......... 13 100.2 13 100.2 Nigeria ................ ............... 36 1,094.4 2 35.5 38 1,129.9 Norway ................ ............... 6 145.0 - - 6 145.0 Oman ........................... .... 4 25.0 - - 4 25.0 Pakistan(8t ............................... 38 884.0 42 1,079.9 80 1,963.9 Panama . ................... 18 258.2 - - 18 258.2 Papua New Guinea . .. .......... 7 71.0 7 68.2 14 139.2 Paraguay . .............................. 16 193.9 6 45.5 22 239.4 Peru ..................... 35 697.0 - - 35 697.0 Philippines ................... .......... . 62 1,977.9 3 122.2 65 2,100.1 Portugal ..................... .......... 14 441.5 - - 14 441.5 Rhodesia(9) ............................... 5 87.0 - - 5 87.0 Romania ............................... 22 1,177.8 - - 22 1,177.8 Rwanda ... ............................ - - 12 88.7 12 88.7 Senegal(3)(7) ..... 15 99.1 19 145.4 34 244.5 Sierra Leone .......... ............... 4 18.7 4 31.3 8 50.0 Singapore .................... .......... 14 181.3 - - 14 181.3 Somalia ............................ - - 19 129.21 19 129.2 South Africa ........... ........ .......... Ii 241.8 - - 11 241.8 Spain . .... . .................... 12 478.7 - - 12 478.7 Sri Lanka ................... ............ 8 93.9 17 218.1 25 312.0 Sudan ............. .... 8 ............. 166.0 19 352.5 27 518.5 Swaziland .... ...................... . 8 41.5 2 7.8 10 49.3 Syrian Arab Republic . ..... ....... 12 468.1 3 47.3 15 515.4 Tanzania . .... .......... 17 293.2 34 429.2 51 722.4 Thailand ....................... 50 1,418.4 6 125.1 56 1,543.5 Togo(', ...... ........................ 1 20.0 9 73.9 10 93.9 Trinidad and Tobago . ........... .... ...... 13 124.8 - - 13 124.8 Tunisia ....... ...._........ .... 35 578.8 5 74.6 40 653.4 Turkey ........ . .......... 41 1,807.4 10 178.5 51 1,985.9 Uganda ......... .. ..... ........... 1 8.4 7 44.3 8 52.7 Upper Volta(')(') ................. ..........an 1.9 14 97.7 14 99.6 Uruguay .... . ........ 15 243.4 - - 15 243.4 Venezuela . ...... 13 383.3 - - 13 383.3 Viet Nam . . ... ... . ....... - 1 60.0 1 60.0 Western Samoa .......... ... .- ..... - 1 4.4 1 4.4 Yemen Arab Republic. .- - 19 173.8 19 173.8 Yemen, People's Democratic Republic of ..... - - 12 63.8 12 63.8 Yugoslavia .. . ... 53 2,337.1 - - 53 2,337.1 Zaire . . 6 220.0 18 247.5 24 467.5 Zambia9 ' . . .. ..... 22 541.4 2 22.3 24 563.7 TOTAL.. 1,731 $ 51,697.2 870 $16,732.3 2,601 $ 68,429.5 ii Joint Ba nk, I DA operatiors are counted only once, as Bank operations. When more than one loan is made for a single project, the operation is ceunted only once. (2) Includes $46.1 million in Bank amoant and 1 Bank loan, as well as $175.8 million in I DA amount and 19 IDA credits, which replace commitments originally made to Pakistan. (3) One IDA prolect, in fiscal year 1974, for Drought Relief, is shared by the following countries: Chad-$2 million; Mah-$2.5 milloir, Mauritania -$2.5 million; Niger-$2 million; Senegal-$3 million; Upper Volta-$2 million. The amounts are Included in each couoitry's total, but the yperation is counted only once, against Senegal. 4) Joititly guaranteed by Kenya, Tanzanta, and Uganda. (,) One Bank loari of $35 million, in fiscal year 1959, is jointly guaranteed by Congo (People's Republic of the), France, and Gabon. n,) One Bank protect of $60 million, ii fiscal year 1976, has been assigned in equal shares to Ghana, Ivory Coast and Togo, but the operatioii is counted only once, against Togo. Of the $60 million, an amouirt of $49.5 millioei was lent to Ciments de l'Afrique de l'Ouest (CIMAD) atid is jointly guaranteed by the three countries. (7) One Bank loan of $7.5 millon, in fiscal year 1954, is shared In amounts of 51.875 million each by Ivory Coast, Mali, Senegal, arid Upper Volta, but is counted as one operation, against Ivory Coast. One Bank loan of $23 milloir in fiscal year 1978 is guarairteed by Ivory Coast arid Upper Volta, but Iscounted as one operstion, against svony Coast. 0i) Excludes $46.1 milion in Bank amountand 1 Bank loan, as well as$175.8 million iri IDA amount and 19 IDA credits, which were reylaced by commitments made to Bangladesh. *r Two Bank loans-of $80 million, in fiscal year 1956, and $7.7 nidlion, in fiscal year 1965, respectively-have been assigned ii equal shares to Rhodesia and Zambia, but are counted only once, against Rhodesia. 186 Bank/liDA Appendices Statement of Loans Approved during Fiscal Year 1979 July 1, 1978-June 30, 1979 (US dollars) Guarantor Date of Interest Principal Purpose and borrower approval Maturities rate amount Algeria Transportation: Third Highway ............ . April 10, 1979 1984/1996 7.00% $ 126,000,000 Algeria (Guarantor) Agriculture and Rural Development: Meat Industry-Office National pour les Aliments du Betail ...................... June 21, 1979 1983/1996 7.90% 42,000,000 Argentina (Guarantor) Transportation: Second Railway-Ferrocarriles Argentinos ... March 27, 1979 1982/1993 7.00% 96,000,000 Barbados Education: Primary and secondary education, teacher and management training. ... .. ... ........... ..... December 19, 1978 1982/1994 7.35% 9,000,000 Tourism: Barbados Tourism Investment Corporation April 10, 1979 1982/1994 7.00% 8,000,000 Brazil Agriculture and Rural Development: Sergipe Rural Development............. .. ................... May 31, 1979 1983/1994 7.90% 26,000,000 Urban Development: Medium-sized Cities.. June 7,1979 1982/1994 7.90% 70,000,000 Agriculture and Rural Development: Pernambuco Rural Development .............. ..................... June 14, 1979 1983/1994 7.90% 40,000,000 Agriculture and Rural Development: Sao Francisco Second Irrigation. ..... ......... ..... ......... June 19, 1979 1983/1994 7.90%, 28,000,000 Transportation: Second Feeder Roads ...................... June 19, 1979 1982/1994 7.90% 110,000,000 Brazil (Guarantor) Urban Development: Sites and Services and Low-cost Housing-Banco Nacional da Habitacao (BNH) ............. January 23, 1979 1982/1994 7.00% 93,000,000 Water Supply and Sewerage: Northeast Water Supply and Sewerage-Banco Nacional da Habitacao (BNH) .January 30, 1979 1982/1994 7.00% 100,000,000 Industry: VALESUL Aluminum-Valesul Aluminio S.A March 6,1979 1982/1994 7.00% 98,000,000 Power: Copel Second Power Distribution-Companhia Paranaense de Energia Eletrica (COPEL) June 7,1979 1983/1994 7.90% 109,000,000 Cameroon Transportation: Fourth Highway ......... ................. June 7, 1979 1984/1999 7.90% 38,000,000 Cameroon (Guarantor) Transportation: Fourth Railway-Regie Nationale des Chemins de Fer du Cameroun ... ....................... June 19, 1979 1985/1999 7.90% 27,000,000 Colombia Transportation: Aviation Development.. .......... ....... October 10, 1978 1983/1995 7.90%, 61,000,000 Urban Development: Second (Cartagena) Urban Development ........................... ........... May 1,1979 1983/1996 7.90% 13,500,000 Colombia (Guarantor) Power: Mesitas Hydroelectric Power-Empresa de Energia Electrica de Bogot (EEEB) .November 14, 1978 1983/1995 7.35% 84,000,000 Water Supply and Sewerage: Third Bogota Water Supply- Empresa de Acueducto y Alcantarillado de Bogot t May 15, 1979 1983/1996 7.90% 30,000,000 Power: San Carlos Second Hydro Power-Interconexi6n Electrica, S.A. (ISA) ................ ................ June 12, 1979 1983/1996 7.90% 72,000,000 Water Supply and Sewerage: Third Medium- and Small- size Cities Water and Sewerage-Instituto Nacional de Fomento Municipal (INSFOPAL)... .................... June 12, 1979 1983/1996 7.90% 31,000,000 Agriculture and Rural Development: Third Agricultural Credit-Instituto Colombiano de la Reforma Agraria June 21, 1979 1984/1996 7.90% 20,000,000 Costa Rica (Guarantor) Power: Sixth Power-Instituto Costarricense de Electricidad (ICE) . ........ ................. May 31, 1979 1983/1994 7.90% 34,000,000 Cyprus Agriculture and Rural Development: Vasilikos-Pendaskinos Water Resources Development .February 6,1979 1982/1994 7.00% 11,000,000 Cyprus (Guarantor) Industrial Development and Finance: Third Cyprus Development Bank (CDB) .June 28, 1979 1983/1994 7.90% 5,000,000 Dominican Republic Agriculture and Rural Development: Nizao Irrigation January 23, 1979 1983/1996 7.00% 27,000,000 Dominican Republic (Guarantor) Tourism: Second Puerto Plata Tourism Development- Banco Central de la Republica Dominicana .May 17, 1979 1984/1996 7.90% 25,000,000 Bank/lIDA Appendices 187 Appendix 3 Guarantor Date of Interest Principal Purpose and borrower approval Maturities rate amount Ecuador Agriculture and Rural Development: Tungurahua Rural Development ....................................... December 21, 1978 1985/1996 7.35% $ 18,000,000 Industrial Development and Finance: Fourth Development Banking ... ................................ June 19, 1979 1982/1994 7.90% 40,000,000 Egypt, Arab Republic of Industry: New Valley Phosphate Engineering and Technical Assistance ........ . ........................ May 1,1979 1981/1989 7.90% 11,000,000 Egypt, Arab Republic of (Guarantor) Energy: Gulf of Suez Gas-Egyptian General Petroleum Corporation (EGPC) ....... .... ............. ..... ... June 19, 1979 1984/1999 7.90% 75,000,000 Power: Shoubrah El Kheima Thermal Power-Egyptian Electricity Authority (EEA) ....... . ........J........... u June 19, 1979 1984/1999 7.90% 102,000,000 El Salvador Education: Fourth Education-Basic education and training in rural communities, school administration, textbooks, training of teachers and technicians ............... ... June 21, 1979 1985/1999 7.90%, 23,500,000 Greece Agriculture and Rural Development: Integrated Forestry Development ...... . .... . ... ........... .... June 5,1979 1983/1994 7.90% 25,000,000 Guyana Nonproject: Import Program Loan .............. ....... October 10, 1978 1984/1998 7.90% 5,000,000 Agriculture and Rural Development: Upper Demerara Forestry ... ..... ... ..... October 10, 1978 1984/1998 7.90% 10,000,000 Honduras Industrial Development and Finance: Industrial Credit ...... February 6,1979 1984/1999 7.00% 15,000,000 Tourism: Tourism Development... ... ...... .. .. March 20, 1979 1984/1999 7.00% 19,500,000 Honduras (Guarantor) Power: Nispero Power-Empresa Nacional de Energia .l6ctrica (ENEE) . ....... ...... ... .... ... November 14, 1978 1984/1998 7.35% 30,500,000 India Power: Ramagundam Thermal Power. ... January 4, 1979 1984/1998 7.35% 50,000,000 Industry: Thai Fertilizer ........... ..... ... ...... June 26, 1979 1984/1999 7.90% 250,000,000 Indonesia Agriculture and Rural Development: Twelfth Irrigation ...... December 21, 1978 1984/1999 7.35% 77,000,000 Urban Development: Third Urban Development . ......... . January 16, 1979 1984/1999 7.00% 54,000,000 Agriculture and Rural Development: Lower Cimanuk Basin Flood Control . ... . ........ .... ....... .... April 24, 1979 1984/1999 7.90%, 50,000,000 Education: Second Agricultural Training . .. ...... April 24, 1979 1985/1999 7.90%, 42,000,000 Transportation: Fifth Highway ... . ..................... May 15, 1979 1984/1999 7.90% 130,000,000 Industrial Development and Finance: Fourth Bank PembangLinan Indonesia (BAPINDO) ...... . .......... . May 17, 1979 1982/1997 7.90% 50,000,000 Agriculture and Rural Development: Second Transmigration. May 29, 1979 1984/1999 7.90% 90,000,000 Power: Eighth Power .... . ......... ............ May 29, 1979 1985/1999 7.90% 175,000,000 Water Supply and Sewerage: Second Water Supply .......... May 29, 1979 1985/1999 7.90% 36,000,000 Ivory Coast Agriculture and Rural Development: SAPH (Soci6te Africaine de Plantations d'Hev6as) Rubber .............. ......... November 21, 1978 1983/1996 7.35% 7,600,000 Tourism: Second Tourism Development ....... .......... May 15, 1979 1983/1996 7.90% 14,200,000 Agriculture and Rural Development: Forestry ....... ...... June 19, 1979 1984/1996 7.90% 18,000,000 Ivory Coast (Guarantor) Industrial Development and Finance: Artisans, Small and Medium-scale Enterprises-Credit de la Cote d'lvoire ....... March 6, 1979 1982/1994 7.00% 12,600,000 Jamaica Industrial Development and Finance: Small-scale Enterprise Development ............... __ ............. July 6, 1978 1983/1995 7.50% 7,000,000 Nonproject: Second Program Loan ........................ May 31, 1979 1984/1996 7.90% 31,500,000 Agriculture and Rural Development: Forestry ............... May 31, 1979 1984/1996 7.90% 12,000,000 Transportation: Fourth Highway ..... . .................... June 21, 1979 1984/1996 7.90% 16,000,000 Jordan Power: Third Power ..................................... April 12, 1979 1983/1996 7.00% 15,000,000 (continued) 188 Bank/IDA Appendices Statement of Loans Approved during Fiscal Year 1979(cntinued) July 1, 1978-June 30, 1979 (US dollars) Guarantor Date of Interest Principal Purpose and borrower approval Maturities rate amount Jordan (Guarantor) Industry: Arab Potash-Arab Potash Company, Ltd.(APC) ... September 5,1978 1985/1991 7.90% $ 35,000,000 Kenya Agriculture and Rural Development: Sugar Rehabilitation .... December 5, 1978 1984/1999 7.35% 72,000,000 Water Supply and Sewerage: Rural Water Supply... ........ December 5,1978 1984/1998 7.35% 20,000,000 Telecommunications: First Telecommunications ............. March 27,1979 1983/1994 7.00% 20,000,000 Transportation: Highway Sector ........................... April 10, 1979 1985/2000 7.00% 90,000,000 Kenya (Guarantor) Power: Olkaria Geothermal Engineering-The Kenya Power Company Limited (KPC) ..................... .......... October 31, 1978 1982/1988 7.35% 9,000,000 Korea, Republic of Transportation: Fourth Highway .................... _.... December 14, 1978 1983/1995 7.35% 143,000,000 Industry: Electronics Technology . ......................... March 22, 1979 1983/1994 7.00% 29,000,000 Korea, Republic of (Guarantor) Industrial Development and Finance: Seventh Korea Development Finance Corporation (KDFC) ......... _...... December 5, 1978 1982/1995 7.35% 100,000,000 Water Supply and Sewerage: Chungiu Multipurpose- Municipal and Industrial Water Supply, and Flood Control- Industrial Sites and Water Resources Development Corporation (ISWACO) ................ ............ ... March 20, 1979 1983/1996 7.00% 125,000,000 Liberia Transportation: Feeder Roads ............................. March 6,1979 1984/1999 7.00% 10,700,000 Malawi (Guarantor) Industrial Development and Finance: Investment and Development Bank of Malawi, Ltd. (INDEBANK) ........... July 6, 1978 1982/1993 7.50% 3,000,000 Malaysia Population and Nutrition: Second Population and Family Health. ....... .............. July 6, 1978 1983/1995 7.50% 17,000,000 Agriculture and Rural Development: Coconut Smallholders Development. ............................. September 5,1978 1983/1995 7.90% 19,500,000 Agriculture and Rural Development: Krian-Sungei Manik Integrated Agricultural Development ..................... November 21, 1978 1983/1995 7.35% 26,500,000 Education: Fifth Education-Occupational and public administration staff training .......... _ ............... January 30, 1979 1983/1996 7.00% 38,000,000 Agriculture and Rural Development: Second Muda Irrigation ............ ......... ................. June 5,1979 1984/1996 7.90% 31,000,000 Mexico (Guarantor) Agriculture and Rural Development: Rio Panuco Irrigation- Nacional Financiera, S.A. (NAFINSA) (supplement) ...... July 11, 1978 1983/1995 7.50% 25,000,000 Agriculture and Rural Development: Small-scale Agricultural Infrastructure-Nacional Financiera, S.A. (NAFINSA) ...... December 21, 1978 1983/1995 7.35% 60,000,000 Transportation: Highway Sector-Banco Nacional de Obras y Servicios Publicos, S.A. (BANOBRAS) ............. .... March 20, 1979 1983/1996 7.00% 120,000,000 Industry: Second Fertilizer (Lazaro Cardenas)-Nacional Financiera, S.A. (NAFINSA) and Fertilizantes Mexicanos, S.A. (FERTIMEX) ...... _ ............ April 12, 1979 1983/1994 7.00% 80,000,000 Agriculture and Rural Development: Rio Fuerte/Rio Sinaloa Irrigation-Nacional Financiera, S.A. (NAFINSA) .......... May 24, 1979 1984/1996 7.90% 92,000,000 Industrial Development and Finance: Fourth Industrial Equipment Fund (FONEI)-Nacional Financiera, S.A. (NAFINSA) ..................................... . May 31, 1979 1983/1996 7.90% 175,000,000 Morocco Education: Fourth Education-Technical teacher training, technology and engineering . ......................... April 10, 1979 1984/1999 7.00% 113,000,000 Industrial Development and Finance: Integrated Project for Small-scale Industry Development ....................... April 12, 1979 1983/1994 7.00% 25,000,000 Power: Village Electrification ............. ........ ...... May 8, 1979 1985/2005 7.90% 42,000,000 Water Supply and Sewerage: Second Water Supply .......... June 7,1979 1984/1999 7.90% 49,000,000 Morocco (Guarantor) Industry: Phosphate Fertilizer Expansion-Maroc-Phosphore. October 17,1978 1983/1992 7.35% 50,000,000 Agriculture and Rural Development: Fourth Agricultural Credit-Caisse Nationale de Cr6dit Agricole (CNCA) ........ May 22, 1979 1984/1993 7.90% 70,000,000 Bank/lDA Appendices 189 Appendix 3 Guarantor Date of Interest Principal Purpose and borrower approval Maturities rate amount Nigeria Agriculture and Rural Development: Bida Agricultural Development in Niger State .............. ....... ..... March 20, 1979 1984/1999 7.00% $23,000,000 Agriculture and Rural Development: llorin Agricultural Development in Kwara State . .... ........ March 20, 1979 1984/1999 7.00% 27,000,000 Agriculture and Rural Development: Forestry Plantation ..... March 27, 1979 1984/1998 7.00% 31,000,000 Water Supply and Sewerage: Kaduna Water Supply ...... May 31, 1979 1984/1999 7.90% 92,000,000 Agriculture and Rural Development: Agricultural and Rural Management Training Institute . .... ........ June 5, 1979 1985/1999 7.90% 9,000,000 Panama (Guarantor) Industrial Development and Finance: Development Banking- Corporacion Financiera Nacional (COFINA) . .... ..... December 19, 1978 1982/1994 7.35% 15,000,000 Agriculture and Rural Development: Tropical Tree Crop Development-Banco Nacional de Panama (BNP) ......... March 20, 1979 1983/1994 7.00% 19,000,000 Paraguay Agriculture and Rural Development: Livestock and Agricultural Development......... ............. .... March 22, 1979 1983/1996 7.00% 25,000,000 Transportation: Sixth Highway ................ ........ June 21, 1979 1984/1996 7.90% 39,000,000 Peru Water Supply and Sewerage: Water Supply and Power Engineering ..... ................................. October 31, 1978 1981/1989 7.35% 8,800,000 Nonproject: Import Program Loan . ........... May 1,1979 1984/1996 7.90% 115,000,000 Philippines Water Supply and Sewerage: Second Manila Water Supply .. July 25, 1978 1984/1998 7.90% 88,000,000 Agriculture and Rural Development: National Agricultural Research and Extension . ..... ....... November 7, 1978 1984/1998 7.35% 35,000,000 Agriculture and Rural Development: Magat River Multipurpose-Stage II Irrigation . ..... ....... December 12, 1978 1984/1999 7.35% 21,000,000 Agriculture and Rural Development: Small Farmer Development Project-Land Bank of the Philippines ... .... December 21, 1978 1984/1999 7.35% 16,500,000 Urban Development: Second Urban Development . ...... .. December 21, 1978 1984/1999 7.35% 32,000,000 Transportation: Fourth Highway ........ March 6,1979 1984/1999 7.00% 100,000,000 Water Supply and Sewerage: Second Provincial Cities Water Supply....... ............. ............. May 29, 1979 1985/1999 7.90%, 16,000,000 Industrial Development and Finance: Second Small and Medium Industries Development ........ ........... June 12, 1979 1985/1999 7.90%, 25,000,000 Portugal Transportation: Second Highway .... ......... ..... May 17, 1979 1982/1994 7.90% 40,000,000 Industrial Development and Finance: Small and Medium- scale Industry Development .............. . ............ May 17, 1979 1982/1994 7.90% 45,000,000 Portugal (Guarantor) Industry: Fertilizer Modernization-Quimica de Portugal, E.P. (QUIMIGAL) . .. . ......... .. January 4, 1979 1982/1993 7.35% 58,000,000 Romania (Guarantor) Industry: Craiova Chemical-Banca de Investitii ............ November 28, 1978 1983/1993 7.35% 40,000,000 Industry: Roman Seamless Pipe-Banca de Investitii ....... January 11, 1979 1982/1993 7.35% 40,000,000 Power: Second Turceni Thermal Power-Banca de Investitii. January 11, 1979 1982/1993 7.35% 70,000,000 Agriculture and Rural Development: Second Livestock- Banca Pentru Agricultura si Industrie Alimentara .. ...... March 20, 1979 1982/1994 7.00% 75,000.000 Agriculture and Rural Development: Mostistea and Calmatui Irrigation and Drainage-Banca Pentru Agricultura si Industrie Alimentara .... _ .... ......... .... .. March 20, 1979 1982/1994 7.00% 70,000,000 Senegal Transportation: Second Aviation .... . ... ... ..... . March 13, 1979 1983/1993 7.00% 7,000,000 Swaziland Transportation: Third Highway .. . ........ September 5,1978 1984/1998 7.90% 11,000,000 Syrian Arab Republic Agriculture and Rural Development: Oilseed Processing ...... November 21, 1978 1983/1996 7.35%o 21,000,000 Agriculture and Rural Development: Lower Euphrates Drainage ............................ April 10, 1979 1983/1996 7.00% 30,000,000 (continued) 190 Bank/liDA Appendices Statement of Loans Approved Appendix 3 during Fiscal Year 1979 (continued) July 1, 1978-June 30,1979 (US dollars) Guarantor Date of Interest Principal Purpose and borrower approval Maturities rate amount Tanzania Industry: Mufindi Pulp and Paper ....................... January 4, 1979 1984/1998 7.35% $ 30,000,000 Tanzania (Guarantor) Industrial Development and Finance: Tanganyika Development Finance Company, Ltd. (TDFL) . ............ June 28, 1979 1983/1994 7.90% 11,000,000 Thailand Agriculture and Rural Development: Second Northeast Thailand Irrigation .................... ............. November 14, 1978 1984/1999 7.35% 17,500,000 Urban Development: Bangkok Traffic Management .......... December 12, 1978 1984/1998 7.35%, 16,000,000 Thailand (Guarantor) Energy: Natural Gas Development Engineering-Natural Gas Organization of Thailand (NGOT) ........... ............. July 11, 1978 1981/1988 7.50% 4,900,000 Telecommunications: Third Telecommunications-Telephone Organization of Thailand (TOT) ........................ September 12, 1978 1984/1998 7.90% 90,000,000 Transportation: Fifth Railway-State Railway of Thailand (SRT) ......._ .......... _ ................ March 6, 1979 1984/1999 7.00%7 16,700,000 Power: Bang Pakong Thermal Power-The Electricity Generating Authority of Thailand (EGAT) ....... . ....... April 24, 1979 1985/1999 7.90% 80,000,000 Trinidad and Tobago Education: Third Education-Primary and secondary education, curricula reform, and teacher training ........... June 7, 1979 1983/1994 7.90% 20,000,000 Tunisia Water Supply and Sewerage: Second Urban Sewerage ....... March 22, 1979 1983/1996 7.00% 26,500,000 Urban Development: Second Urban Development ..... May 22, 1979 1983/1996 7.90%7 19,000,000 Agriculture and Rural Development: Second Fisheries ....... June 28, 1979 1983/1996 7.90% 28,500,000 Tunisia (Guarantor) Water Supply and Sewerage: Fifth Water Supply-Societe Nationale d'Exploitation et de Distribution des Eaux (SONEDE) ........ ........ ..................... May 17, 1979 1984/1996 7.90% 25,000,000 Turkey Nonproject: Import Program Loan ... .... ........ November 7,1978 1983/1995 7.35% 150,000,000 Transportation: Ports Rehabilitation . ..... .....u.......... June 26, 1979 1983/1996 7.90% 75,000,000 Agriculture and Rural Development: Grain Storage .... June 26, 1979 1983/1996 7.90% 85,000,000 Turkey (Guarantor) Energy: Bati Raman Enhanced Oil Recovery Engineering- Turkiye Petrolleri Anonim Ortakligi (TPAO) .............. November 21, 1978 1981/1988 7.35% 2,500,000 Uruguay Transportation: Second Highway ... .......... ..... April 17, 1979 1983/1994 7.90% 26,500,000 Yugoslavia (Guarantor) Industrial Development and Finance: Third Industrial Credit-Kosovska Banka Pristina (KBP) .................. July 11, 1978 1980/1993 7.50% 40,000,000 Industrial Development and Finance: Fourth Industrial Credit-Privredna Banka Sarajevo (PBS), Stopanska Banka Skopje (SBS), Investiciona Banka Titograd (IBT) .......... July 11, 1978 1980/1993 7.50% 60,000,000 Agriculture and Rural Development: Macedonia Strezevo Irrigation-Stopanska Banka Skopje (SBS) ................ August 8, 1978 1982/1993 7.90% 82,000,000 Agriculture and Rural Development: Bosanska-Krajina Agriculture and Agro-industries-Privredna Banka Sarajevo (PBS) .. . .... ..................... October 5,1978 1982/1993 7.90% 55,000,000 Transportation: Tenth Highway-Road Organizations of Kosovo, Montenegro, Vojvodina, and Bosnia and Herzegovina, and the Socialist Republic of Macedonia ....... March 27, 1979 1982/1994 7.0C% 148,000,000 TOTAL of loans to or guaranteed by members.... ........... ............... .......... $6,989,000,000 Bank/lIDA Appendices 191 Statement of Development Credits Appendix 4 Approved during Fiscal Year 1979 July 1, 1978-June 30, 1979 (US dollars) Date of Service Principal Purpose and borrower approval Maturities charge amount Afghanistan Water Supply and Sewerage: Kabul Water Supply and Sewerage.... . ... .... ............ .......... July 6, 1978 1988/2028 34% $16,500,000 Education: Third Education-Primary teacher, teacher educator and administrator training. ........... March 29, 1979 1989/2028 3/4% 21,000,000 Transportation: Third Highway ........... . ....... ...... June 7, 1979 1989/2029 3/u% 17,600,000 Agriculture and Rural Development: Ghazni-Wardak Agriculture and Rural Development . ......... ........ June 7,1979 1989/2028 3/4%7 16,500,000 Bangladesh Agriculture and Rural Development: Drainage and Flood Control ... .... . .. ....... ... ....... December 14, 1978 1989/2028 3/4% 19,000,000 Nonproject: Seventh Imports Program ..... ........ ..... . December 19, 1978 1989/2028 3%7 75,000,000 Technical Assistance: Third Technical Assistance ... . ...... December 21, 1978 1989/2028 3/4% 10.000,000 Agriculture and Rural Development: Oxbow Lakes Fishery ..... March 29, 1979 1989/2029 Y4 % o 6,000,000 Education: Vocational Training. ...... May22,1979 1989/2028 34% 25,000,000 Population and Nutrition: Second Population and Family Health. ... May 29, 1979 1989/2029 3i/4 32,000,000 Industry: Ashuganj Fertilizer (supplement) ............. .. June 7,1979 1985/2024 Y/4 o 29,000,000 Power: Greater Khulna Power Distribution .. ...... ....... June 14, 1979 1989/2029 3/4% 28,000,000 Water Supply and Sewerage: Second Dacca Water Supply and Sewerage .. ........ ... ... .................. June 26, 1979 1989/2029 3/4% 22,000,000 Nonproject: Fertilizer Imports ..... . ..... ........... June 28, 1979 1989/2029 3%% 25,000,000 Benin Transportation: Cotonou Port (supplement) .......... . ... July 10, 1978 1988/2028 3/o4% 8,300,000 Bolivia Agriculture and Rural Development: Omasuyos-Los Andes Rural Development. June 14, 1979 1989/2029 Y3/4 3,000,000 Industry: National Mineral Exploration Fund ....... ..... . June 26, 1979 1989/2029 3/4% 7,500,000 Burma Agriculture and Rural Development: Second Paddyland Development. .... .... July 6, 1978 1988/2028 %%9 34,500,000 Agriculture and Rural Development: Rubber Rehabilitation ..... February 6, 1979 1989/2028 3%, 4,500,000 Burundi Technical Assistance: Second Technical Assistance ........ May 24, 1979 1989/2029 3/4% 2.500.000 Agriculture and Rural Development: Forestry ... .... ...... May 24, 1979 1989/2029 3/4 % 4,300,000 Cameroon Transportation: Fourth Highway. ... .. ........ June 7, 1979 1989/2029 %, 3 4 10,000,000 Transportation: Fourth Railway ........ ... June 19, 1979 1989/2029 3/4 20,000,000 Central African Empire Transportation: Third Highway ...... ..... September 5,1978 1988/2028 3/4% 15,500,000 Agriculture and Rural Development: Livestock Development .. March 29, 1979 1989/2029 3/4% 2,500,000 Chad Transportation: Third Highway .July 25, 1978 1988/2028 3/4% 7,600,000 Comoros Transportation: Highway Development. ...... October 5, 1978 1989/2028 3/ % 5,000,000 Egypt, Arab Republic of Population and Nutrition: Second Population ...... ... October 5,1978 1989/2028 3/4% 25,000,000 Education: Second Education-Preparatory and secondary education, teacher training, and manpower planning. December 19, 1978 1989/2028 34% 40,000,000 Tourism: Luxor Archeological Sites; Egyptian Museum, Cairo; and Abu Simbel ..... .... . .. .......... ... . - May 17, 1979 1989/2029 3/4% 32,500,000 Power: Shoubrah El Kheima Thermal Power .June 19, 1979 1989/2029 3/4% 37,000,000 Gambia, The Transportation: Highway Maintenance .April 24, 1979 1989/2028 3/4 % 5,000,000 Ghana Industrial Development and Finance: Second National Investment Bank (NIB) .......... ............... May 8,1979 1989/2029 345% 19,000,000 (continued) 192 Bank/lDA Appendices Statement of Development Credits Approved during Fiscal Year 1979(continued) July 1,1978-June 30,1979 (US dollars) Date of Service Principal Purpose and borrower approval Maturities charge amount Guinea Education: Polytechnic institutes, teacher training, and training of skilled workers... .......... _ ....... ........ September 12, 1978 1989/2028 3k% $ 8,000,000 Water Supply and Sewerage: First Water Supply and Sanitation ............................... ............... December 19, 1978 1989/2028 3/4% 12,500,000 Power: Power Engineering and Repair ....................... December 19, 1978 1981/1989 3/A% 1,130,000 Guinea-Bissau Transportation: Roads .... ............ ................ January 30, 1979 1989/2028 3/4% 9,000,000 Guyana Nonproject: Import Program .............................. October 10, 1978 1989/2028 3/ % 5,000,000 Haiti Power: Second Power ................................. April 17, 1979 1989/2029 3/4% 16,500,000 India Water Supply and Sewerage: Second Bombay Water Supply and Sewerage. ............ July 25, 1978 1989/2028 34 % 196,000,000 Agriculture and Rural Development: Haryana Irrigation ........ August 8, 1978 1988/2028 3/4% 111,000,000 Transportation: Railway Modernization and Maintenance ... August 8, 1978 1989/2028 3/4% 190,000,000 Water Supply and Sewerage: Punjab Water Supply and Sewerage. .... ............................... September 12, 1978 1989/2028 3/4% 38,000,000 Agriculture and Rural Development: National Agricultural Research ............ ....... ............................ October 10, 1978 1989/2028 3/4 % 27,000,000 Agriculture and Rural Development: Composite Agricultural Extension .............................................. December 12, 1978 1989/2028 3A % 25,000,000 Agriculture and Rural Development: Agricultural Credit- National Cooperative Development Corporation (NCDC) . December 21, 1978 1989/2028 3A% 30,000,000 Power: Ramagundam Thermal Power . ......... ............. January 4,1979 1989/2028 3/4% 200,000,000 Agriculture and Rural Development: Punjab Irrigation ......... March 29, 1979 1989/2029 3A% 129,000,000 Water Supply and Sewerage: Maharashtra Water Supply and Sewerage . ... ........................ May 1, 1979 1989/2029 3A% 48,000,000 Power: Second Rural Electrification Corporation (REC) ....... May 22, 1979 1989/2029 3A% 175,000,000 Agriculture and Rural Development: Uttar Pradesh Social Forestry ............... ............................. June 5,1979 1989/2029 3A% 23,000,000 Indonesia Education: Polytechnic and accountancy training ... .... December 19, 1978 1989/2028 3/4% 49,000,000 Technical Assistance: Fifth Technical Assistance .... ......... April 24, 1979 1989/2029 3A% 10,000,000 Agriculture and Rural Development: Second Transmigration. .. May 29, 1979 1989/2029 34% 67,000,000 Kenya Agriculture and Rural Development: Narok Agricultural Development ............ . ............................. December 5, 1978 1989/2028 14 % 13,000,000 Agriculture and Rural Development: Smallholder Coffee Improvement ............................... _.......... May 22, 1979 1989/2029 3A % 27,000,000 Lao People's Democratic Republic Agriculture and Rural Development: Second Agricultural Rehabilitation and Development ......... . ................ June 5, 1979 1989/2029 3A % 10,400,000 Lesotho Transportation: Third Highway ............................ March 13, 1979 1989/2029 14% 9,000,000 Water Supply and Sewerage: Water Supply .................. March 20, 1979 1989/2029 3A % 6,000,000 Liberia Agriculture and Rural Development: Forestry Development .... July 11, 1978 1988/2028 3A% 6,000,000 Water Supply and Sewerage: Monrovia Water Supply ......... December 5,1978 1989/2028 14% 8,000,000 Madagascar Agriculture and Rural Development: Mangoky Agricultural Development . ......... .............. March 6,1979 1989/2029 1/4% 12,000,000 Transportation: Second Railway ............................ May 8, 1979 1989/2028 3A/% 13,000,000 Transportation: Fifth Highway .............................. June 21, 1979 1989/2029 34% 24,000,000 Malawi Agriculture and Rural Development: National Rural Development Program (NRDP)-Phase I .................... November 28, 1978 1989/2028 3 /4% 22,000,000 Education: Third Education-Primary and secondary education, curriculum development, and teacher training ............... May 17, 1979 1989/2029 3A % 14,500,000 Bank/lIDA Appendices 193 Appendix 4 Date of Service Principal Purpose and borrower approval Maturities charge amount Maldives Agriculture and Rural Development: Fisheries ........ ...... May 15, 1979 1989/2029 3/4% $ 3,200,000 Mali Agriculture and Rural Development: Technical assistance/ engineering for agricultural rehabilitation ................... October 10, 1978 1989/2028 3/4% 4,500,000 Agriculture and Rural Development: Forestry ................. March 6,1979 1989/2028 3/4% 4,500,000 Urban Development ..... ... .......... ............ ... June 26, 1979 1989/2029 3/4% 12,000,000 Mauritania Industrial Development and Finance: Urban and Rural Development-Small and medium-scale enterprises, artisans, and village cooperatives .......... . . . ..... .... ..... March 27, 1979 1989/2028 3/4 % 8,000,000 Nepal Agriculture and Rural Development: Narayani Zone Irrigation Development-Stage II .......... . ..................... October 10, 1978 1988/2028 3/4 % 14,000,000 Power: Kulekhani Hydroelectric(supplement). .... May 10, 1979 1986/2025 3/4% 14,800,000 Agriculture and Rural Development: Second Rural Development ... .... ....... .... June 21, 1979 1989/2029 3/4%7 11,000,000 Niger Agriculture and Rural Development: Irrigation . . . . ..... October 5,1978 1989/2028 3/4% 15,000,000 Agriculture and Rural Development: Livestock. .. March 13, 1979 1989/2029 3/4% 12,000,000 Transportation: Feeder Roads ........................ March 20, 1979 1989/2029 3/4% 10.000,000 Pakistan Industry: Fauji Fertilizer-Fauji Fertilizer Company Limited (FFC). ....................... September 5,1978 1988/2028 3/4%' 55,000,000 Energy: Toot Oil and Gas Development . .. . . ........... December 19, 1978 1989/2028 3/4% 30,000,000 Agriculture and Rural Development: Salinity Control and Reclamation (SCARP-Mardan) .. ......... .... January 23, 1979 1989/2028 3/4% 60,000,000 Education: Primary education, teacher training, and textbooks. March 29, 1979 1989/2029 3/4% 10,000,000 Agriculture and Rural Development: Sind Agricultural Extension and Adaptive Research. ...... .... May 29, 1979 1989/2029 14% 9,000,000 Papua New Guinea Agriculture and Rural Development: Rural Development in Southern Highlands Province ...... ............. July 25, 1978 1988/2028 34% 20,000,000 Philippines Water Supply and Sewerage: Second Provincial Cities Water Supply .. . May 29,1979 1989/2029 3/4% 22,000,000 Population and Nutrition: Second Population .... .... June 5,1979 1989/2029 3/4% 40,000,000 Rwanda Industrial Development and Finance: Second Banque Rwandaise de Developpement(BRD)... . April 24, 1979 1989/2029 34% 5,200,000 Agriculture and Rural Development: Mutura Agriculture and Livestock Development-Phase II .. ............... ...... June 19, 1979 1989/2029 3/4% 8,750,000 Senegal Water Supply and Sewerage: Water Supply Engineering and Technical Assistance ... . ......................... April 24, 1979 1981/1989 3/4% 2,500,000 Education: Third Education-High- and middle-level technicians and managers for modern agriculture and industry, secondary and vocational education in rural areas ..... . ...... May 15, 1979 1989/2029 3/4% 22,000,000 Somalia Transportation: Fourth Port-Mogadishu . .......... July 6,1978 1988/2028 3/4% 5,500,000 Agriculture and Rural Development: Agricultural extension and farm management training .............. ... .......... May 10, 1979 1989/2029 3/4% 10,500,000 Agriculture and Rural Development: Central Rangelands ....... May 10, 1979 1989/2029 3/4% 8,000,000 Sri Lanka Agriculture and Rural Development: Kurunegala Rural Development ............. ............................. March 29, 1979 1989/2029 3/4% 20,000,000 Transportation: Road Maintenance ...... .. ................ May 1, 1979 1989/2029 13/4 % 16,500,000 Agriculture and Rural Development: Agricultural Extension and Adaptive Research. .... .................... June 12, 1979 1989/2029 34% 15,500,000 Industrial Development and Finance: Small and Medium Industries ........... ......... June 26, 1979 1989/2029 Y4% 16,000,000 (continued) 194 Bank/iDA Appendices Statement of Development Credits Appendix 4 Approved during Fiscal Year 1979 (continued) July 1, 1978-June 30, 1979 (US dollars) Date of Service Principal Purpose and borrower approval Maturities charge amount Sudan Transportation: Second Highway ............................ March 6,1979 1989/2028 3/4% $ 41,000,000 Agriculture and Rural Development: Southern Region Agriculture . ....................................... May 8,1979 1989/2029 3/4% 15,000,000 Tanzania Tourism: Tourism Rehabilitation ........... ................ December 12, 1978 1989/2028 34 % 14,000,000 Education: Sixth Education-Vocational and technical education, accountancy and educational management training.... ............... .... .... ........ .. December 12,1978 1989/2028 3/% 12,000,000 Industry: Mufindi Pulp and Paper ........................ January 4, 1979 1989/2028 3/% 30,000,000 Transportation: Fifth Highway .. .... . .... January 16, 1979 1989/2028 3 4 20,500,000 Thailand Education: Fifth Education-Practical instruction .............. May 22, 1979 1989/2029 3/4 35,000,000 Agriculture and Rural Development: Northern Agricultural Development ........ ........... ............. ........ June 12, 1979 1989/2029 3/ % 25,000,000 Togo Technical Assistance ..... ............ ............... June 12, 1979 1989/2029 3/4% 2,200,000 Agriculture and Rural Development: Second Cocoa-Coffee Development ....... ...........J..............u......... June 28, 1979 1989/2029 3/4% 14,000,000 Viet Nam Agriculture and Rural Development: Dau Tieng Irrigation ...... August 8, 1978 1989/2028 3/4o 60,000,000 Yemen Arab Republic Power: Power Distribution ................. _......... ..... July 6,1978 1988/2028 Y/4% 10,000,000 Agriculture and Rural Development: Third Tihama Development-Irrigation ............ ......... ..... March 6,1979 1989/2028 3/4% 15,000,000 Education: Third Education-Agricultural schooling; public administration training; and preinvestment sociological, feasibility, and design studies for health care ............... May 22, 1979 1989/2028 3/ % 10,000,000 Yemen, People's Democratic Republic of Education: Second Education-Vocational training centers .... December 14, 1978 1989/2028 3 A% 4,000,000 Agriculture and Rural Development: Second Fisheries Development ........ ..................... June 12, 1979 1989/2029 34% 10,000,000 Zaire Transportation: Railway ................................... May 8,1979 1989/2028 14% 20,000,000 Transportation: Fourth Highway ........ . . ... May 24, 1979 1989/2029 34 % 26,000,000 Zambia Agriculture and Rural Development: Coffee Production ........ December 14, 1978 1989/2028 34% 6,000,000 Technical Assistance: Project Planning and Preparation ........ December 21, 1978 1989/2028 34 % 5,000,000 TOTAL of credits ...................................... $3,021,480,000 Bank/IDA Appentdices 195 Administrative Budgets Appendix 5 of the Bank and IDA For the fiscal year ending June 30, 1980 Actual expenses Budget 1979 1980 (Thousands of US dollars) BY ORGANIZATION UNIT Board of Governors . ..... ...... .... 1,201 1,754 Executive Directors .......... ...... ............ . 7,611 9,052 Executive Offices. ........... ...... 1,172 1,786 Regional Offices . . . 131,444 152,449 Central Projects Staff. . .... .. . 36,902 46,755 Cooperative Programs-FAO, Unesco, WHO, and UNIDO. .. 7,779 8,693 Development Policy Staff ........ .17,823 21,188 Financial Staff . ....... .... 18,605 23,547 Operations Evaluation Staff . .2,473 3,010 Legal, ICSID, and Secretary's .. ................ 6,770 8,060 External Relations . . 9,347 10,151 Economic Development Institute .. .. .... 7,054 8,207 Administration, Organization, Personnel Management 36,991 44,294 Grants for consultants to member countries 8 23 Consultative Group on International Agricultural Research ... 678 882 Development Committee ........... ... ..... .... 312(r) - Reimbursable Technical Assistance . .5,085 7,620 Contingency allowance ............. . ..... - 2,957 TOTAL... 291,255 350,428 Less: Reimbursements .... .......... . ...... . . . -12,405 -14,981 IFC service and support fee ............. -2,197 -2,447 TOTAL IBRD,/IDA . . . 276,653 333,000 BY EXPENSE CATEGORY Personal services ... ....... 189,478 232,844 Operational travel ......... .. . 30,306 35,018 Representation . .. . 768 765 Consultants .. 21,224(2) 24,760(2) Contractual services. .... ....... ..... ... 9,056 8,294 Overhead expenses Other travel ......... ...... .. . ..... ....... .. 9,914 13,169 Office occupancy ......... .... . 13,757 14,879 Communications .... . . . 6,452 6,683 Other expenses ....... 10,300 11,059 Contingency - 2,957 TOTAL ........ ...... ... 291,255 350,428 Less: Reimbursements ..... -12,405 -14,981 I FC service and support fee .............. ..... -2,197 -2,447(sl TOTAL IBRD/IDA . . . . 276,653(4) 333,000 Of which: IBRD ... .................... ........... .. 162,180 199,541 IDA ..... . ............ ............. 114,473 133,459 Note: The Administrative Budgets for the fiscal year ending June 30, 1980, were approved by the Executive Directorsinaccordancewiththe By-Lawsotthe Bankand IDA. For purposesofcomparison,the administra- tive expenses incurred during the fiscal year ended June 30, 1979, are also shown. (') This figure represents the Bank's share (approximately 50%) of the cost of the Committee. (2) The figures shown include the costs of the Cooperative Programs. (3) In fiscal 1980 general assistance rendered by the Bank to I F will be paid for by a service and support fee, which has been established for the year at $2,447,000. (4) Excludes $16.8 million accrual for vacation pay charged to fiscal 1979 administrative expenses. 196 Bank/lIDA Appendices Governors and Alternates of the Bank and IDA June 30, 1979 Member Governor Alternate Afghanistan ..... Abdul Karim Meesaq ............... .... Khair Mohammad Sultani(') Algeria ..... M'Hamed Hadj-Yala .Mohamed Terbeche Argentina ..... Jose A. Martinez de Hoz .Adolfo C. Diz Australia ..... J. W. Howard .J. C. Ingram Austria .................................. Hannes Androsch .Walter Neudbrfer Bahamas(2) . Arthur D. Hanna .Reginald L. Wood Bahrain2' ..... Ibrahim Abdul Karim .Isa Abdullah Burshaid Bangladesh ..... M. N. Huda .S. A. Khair Barbados(2) ... ...................... J. M. G. M. Adams .Stephen E. Emtage Belgium ..... Gaston Geens .Cecil de Strycker Benin ..... Frangois Dossou .Abou Bakar Baba-Moussa Bolivia ................................. Javier Alcoreza M .Enrique Garcia A. Botswana .............. Q. K. J. Masire ............ Baledzi Gaolathe Brazil ....................... Karlos Rischbieter ............ Carlos Brandao Burma ................................ U Tun Tin ............ U Myo Myint Burundi ..... Astere Girukwigomba ............. Jean Ndimurukundo Cameroon ..... Youssoufa Daouda ............ Amadou Bello Canada . .... John C. Crosbie(l) ............ Michel Dupuy Cape Verde . .... (vacant) ............ (vacant) Central African Empire . ............ Jean-Pierre Le Bouder .Marc Babel Bedan Chad ...... .. ........ Mahamat Saleh Ahmat .Blayo Ngartando Chile . . .............. Sergio de Castro Spikula .Sergio Undurraga Saavedra China, Republic of ................. . Philip C. C. Chang .Chun-Heng Tu Colombia ...... ............................ Jaime Garcia Parra ........... Rafael Gama Quijano Comoros ................................... Said Kafe .......... . ..................... Si Mohamed Nacr-ed-Dine Congo, People's Republic of the... .......... Pierre Moussa ............ Andr6 Batanga Costa Rica . ................ . Hernan Saenz Jimenez ............ Guillermo Gonzalez T. Cyprus . .... .............. Andreas C. Patsalides ............. A. C. Afxentiou Denmark . .................. Henning Christoffersen ............. Lise Ostergaard Dominican Republic . ................ Eduardo Fernandez P ............ Rafael Hernandez Machado Ecuador . . Juan Reyna S ............ Francisco Swett Egypt, Arab Republic of ....... ........ Hamed El-Sayeh .... ........ M. Samir Koraiem El Salvador . . ......... . Roberto Ortiz Avalos ............ Eduardo Reyes Equatorial Guinea . . ........ Mba Oyono Ayingono ............ Ela Oyana Ela Ethiopia . ...................... Teferra Wolde-Semait ............... Asfaw Damte Fiji . .... Charles Walker ......... Winston Thompson Finland . ...................... Esko Rekola ............... Annikki Saarela France ..... ....... .............. .... Bernard Clappier ............. Marcel Theron Gabon . . ..................... Michel Anchouey ............. J. Felix Mamalepot Gambia, The . ..... Mohamadu Cadi Cham ............. T. G. G. Senghore Germany, Federal Republic of . .......... Hans Matthoefer. ........... Rainer Offergeld Ghana . . ............... J. L. S. Abbey(') ........... Godfried T. Oddoye Greece . ................ Constantine Mitsotakis ........... Stavros Dimas Grenada ................. Bernard Coard .... ....... Dessima Williams Guatemala ........................ ..... Hugo Tulio BGcaro Garcia .Juan Valentin Sol6rzano F. Guinea ................................. Salkou Barry(') ........ Mohamed Lamine Tour(l) Guinea-Bissau ....... Victor Freire Monteiro ........... Jose Lima Barber Guyana ....... F. E. Hope ........... Harold E. Wilkinson Haiti ....... Emmanuel Bros ........... Antonio Andre Honduras ....... Valentin J. Mendoza ........... (vacant) Iceland ....... Svavar Gestsson ........... Tomas Arnason India .... .... ......... .... Charan Singh .Manmohan Singh Indonesia .... ................. ........ Rachmat Saleh .......... . . Soegito Sastromidjojo Iran Ali Ardalan. Jahangir Amuzegar Iraq Fawzi El-Kaissi. Hisham Ha,ssan Tawfik Ireland George Colley .Tomas F. 0 Cofaigh Israel Arnon Gafny .Amiram Sivan Italy ...... ............................ Paolo Baffi .Felice Ruggiero Ivory Coast .......... Abdoulaye Kone .Lon Naka Jamaica(2) .. . ..E.. ... .... Eric C. Bell .Richard Fletcher Japan . ......... lppei Kaneko .Teiichiro Morinaga Jordan . ................... Hanna Salim Odeh .Hashim A. Dabbas Kampuchea, Democratic . ............... (vacant) ............ (vacant) Kenya . .................. . Mwai Kibaki ...... ..... Nicholas Nganga Korea, Republic of . ................. Woun Gie Kim ............ Byong Hyun Shin Kuwait . ....... ............ Abdul Rahman Salim Al-Ateeqy ............ Abdlatif Y. Al-Hamad Lao People's Democratic Republic . ...........Bousbong Souvannavong ............ Pheng Uplavan Bank/lIDA Appendices 197 Appendix 6 Member Governor Alternate Lebanon ............. Khattar Chebli ................. Sabbah Al-Haj Lesotho ............. E. R. Sekhonyana ................. A. M. Monyake Liberia ............. James T. Phillips, Jr .............. ... D. Franklin Neal Libya ............. Mohammad Zarrough Rajab ................. Abdulla A. Saudi Luxembourg ............. Jacques F. Poos ................. Raymond Kirsch Madagascar ....... ..... Rakotovao Razakaboana ................. Rajaona Andriamananjara Malawi ............. Edward C. 1. Bwanali ................. Peter M. 0. Mbisa Malaysia ............. Razaleigh Hamzah ................. Thong Yaw Hong Maldives ............. Fathulla Jameel .................. Adam Maniku Mali ............. Bandiougou Gakou. ................. Mamadou Haidara Mauritania ............. Moulaye Ould Boukhreiss ................. Moustapha Ould Abeidarrahmane Mauritius ............. Rabindrah Ghurburrun ................. Devarajen Soopramanien Mexico ............. David Ibarra Munoz . ................ Jorge Espinosa de los Reyes Morocco ............. Abdelkamel Rerhaye ................. Othmane Slimani Nepal ............. Kirti Nidhi Bista ................. Devendra Raj Panday Netherlands ............. F. H. J. J. Andriessen ........... ...... J. de Koning New Zealand ............. R. D. Muldoon ......... ........ N. V. Lough Nicaragua ............. Guillermo Sevilla-Sacasa ................. R6ger Bland6n Velasquez Niger ... ........... Mai Mai-Gana ..... Mahamane Annou Nigeria ... J. J. Oluleye ...... S. A. Musa Norway ... Per Kleppe ..... Thorvald Stoltenberg Oman ... Qais A. Zawawi ..... Sherif Lotfy Pakistan ... Ghulam Ishaq Khan ..... Aftab Ahmad Khan Panama ..... .......................... Gustavo R. Gonzalez .......... ............. Ernesto Perez Balladares Papua New Guinea ............. Barry Blyth Holloway ............. A. G. Morris Paraguay ............. C6sar Romeo Acosta ............. Augusto Colman V. Peru ............. Javier Silva Ruete ............. Guillermo Schwartzmann Philippines ............. Cesar E. A. Virata ............. Jaime C. Laya Portugal(2) ............. Manuel Jacinto Nunes ........ ..... Rui Jose da Concei,co Nunes Qatar(2). ............. Abdul Aziz Al-Thani ............. Madhat Abdul Latif Masud Romania(2) ............. Paul Niculescu-Mizil ..... ........ Gheorghe Popescu Rwanda ............. Denis Ntirugirimbabazi ............. Jean-Damascene Munyarukiko Sao Tome and Principe .............. .. Henrique Pinto da Costa ...... Victor Manuel Lopes Correia Saudi Arabia ............. Mohamed Abalkhail ...... Khalid Al Gosaibi Senegal ............. Louis Alexandrenne ...... Serigne Lamine Diop Sierra Leone ............. Francis M. Minah ...... J. Amara-Bangali Singapore(2) ............. Hon Sui Sen ...... J. Y. M. Pillay Solomon Islands(2) .... ......... Benedict Kinika ...... A. V. Hughes(') Somalia ............. Mohamud Yusuf Weyrah ...... Omar Ahmed Omer South Africa ............. ............ T. W. de Jongh ...... G. P. C. de Kock Spain ............. Jaime Garcia Anloveros ...... Jos6 Ram6n Alvarez Rendueles Sri Lanka ............. Ronnie de Mel ...... W. M. Tilakaratna Sudan ............. Nasr Eldin Mustafa ...... Abdel Rahman Abdel-Wahab Suriname(2). ............. L. E. Goede ...... V. M. de Miranda Swaziland ............. V. E. Sikhondze ...... Timothy M. J. Zwane Sweden ............. Ingemar Mundebo ...... Thord Palmlund Syrian Arab Republic ............. Sadek Ayoubi ...... Abdul Hadi Nehlawi Tanzania ............. E. 1. M. Mtei ....... E. A. Mulokozi Thailand ... .......................... Kriangsak Chomanan ............. .... Chanchai Leetavorn Togo. . ... ........ Koudjolou Dogo .Napo Kakaye Trinidad and Tobago ............. Eric Williams .................... F. Barsotti Tunisia ............. Mustapha Zaanouni .................... Salah M'Barka Turkey ............. Ziya MUezzinoglu .................... Kaya Erdem Uganda ............. Jack A. P. M. Sentongo(l) ......... ........ Ponsiano S. Mulema United Arab Emirates(2) ............. Hamdan Bin Rashid Al Maktoum ............. Ahmed Humaid Al-Tayer United Kingdom ............. Gordon Richardson .................... Sir Douglas Wass United States ............. W. Michael Blumenthal .................... Richard N. Cooper Upper Volta ............. Georges Sanogoh .................... Pierre Tahita Uruguay(2) ............. Valentin Arismendi .... ................ Juan Jose Anichini Venezuela(2) ............. Ricardo Martinez. .................... Leopoldo Diaz Bruzual Viet Nam ............. Tran Duong .................... Mai Huu Ich Western Samoa ........................ . Vaovasamanaia R. P. Phillips .............. Maiava lulai Toma Yemen Arab Republic ............ Ali Lotf Al-Thor .Ali A. Khoder Yemen, People's Democratic Republic of ...... Abdul-Aziz Abdul-Wali ............ ... Farag Bin Ghanem Yugoslavia ....................... .. Petar Kosti6 ............... Gavra Popovi6 Zaire .......................... Bofossa w'Amb'ea Nkoso ............... Bazundama Mbandanu Luzumbulu Zambia ......................... M. J. Lumina ............... Lloyd C. Sichilongo (') Appointment effective after June 30, 1979. (21 Member of the Bank only. 198 Bank/lIDA Appendices Executive Directors and Alternates Appendix 7 of the Bank and IDA June 30, 1979 Total votes Executive Director Alternate Casting votes of Bank IDA Appointed Edward R. Fried ............ William P. Dixon ............ United States .................................69481 722,211 William S. Ryrie ............ Ronald F. R. Deare .......... United Kingdom .26,250 263,576 Eberhard Kurth ............. Hans-Dieter Hanfland ....... Germany (Federal Republic of) .17,862 236,831 Susumu Murayama(l) ....... Kimiaki Nakajima .......... Japan .13,789 201,476 Paul Mentre de Loye ........ Pierre-Henri Cassou(2) ...... France .13,042 138,669 Elected Earl G. Drake ...... Edward M. Agostini ......... Bahamas,(3) Barbados,(3) Canada, Grenada, Guyana, (Canada) (Guyana) Ireland, Jamaica(3) .................. 15,054 164,508 Said E. El-Naggar ......... Saleh A. Al-Hegelan ....... Bahrain,(3) Egypt (Arab Republic of), Iraq, (Arab Republic of Egypt) (Saudi Arabia) Jordan, Kuwait, Lebanon, Maldives, Pakistan, Qatar,(3) Saudi Arabia, Syrian Arab Republic, United Arab Emirates,(3) Yemen Arab Republic. . . 14,732 188,953 M. Narasimham ............ M. Syeduz-Zaman .......... Bangladesh, India, Sri Lanka .14,152 157,319 (India) (Bangladesh) Anthony IJ. A. Looijen ..... Miodrag M. Stojiljkovi6 ...... Cyprus, Israel, Netherlands, Romania,(3) (Netherlands) (Yugoslavia) Yugoslavia .13,114 109,686 Jacques de Groote ......... Herbert Sutter .......... Austria, Belgium, Luxembourg, Turkey ........... 12,547 96,032 (Belgium) (Austria) Eduardo Mayobre ......... Oscar G. Espinosa .......... Costa Rica, El Salvador, Guatemala, Haiti, (Venezuela) (Peru) Honduras, Mexico, Panama, Peru, Spain, Suriname,(3) Venezuela(3O ........................ 12,070 83,664 Hans Lundstrdm ........ Valgeir Arsaelsson ..... .... Denmark, Finland, Iceland, Norway, Sweden ...... 11,876 184,338 (Sweden) (Iceland) Giorgio Rota .......... .. Antonio S. Labisa ... Greece, Italy, Portugal(3) .11,544 84,198 (Italy) (Portugal) R. A. Johnston(4i ...... .. Sang-Chul Suh ........ Australia, Korea (Republic of), New Zealand, (Australia) (Republic of Korea) Papua New Guinea, Solomon Islands,(3) Western Samoa ......... ............... 11,268 91,232 Zain Azraai ................ Aung Pe .......... ....... Burma, Fiji, Indonesia, Lao People's Democratic (Malaysia) (Burma) Republic, Malaysia, Nepal, Singapore,(3) Thailand, Viet Nam ............. ................ 11,014 109,438 Austin H. Madinga .......... Y. S. M. Abdulai ......... Botswana, Burundi, Equatorial Guinea, Ethiopia, (Malawi) (Nigeria) The Gambia, Guinea, Kenya, Lesotho, Liberia, Malawi, Nigeria, Sierra Leone, Sudan, Swaziland, Tanzania, Trinidad and Tobago, Uganda, Zambia . 9,766 135,958 Armand Razafindrabe ....... Nicephore Soglo .Benin, Cameroon, Central African Empire, Chad, (Madagascar) (Benin) Comoros, Congo (People's Republic of the), Gabon, Guinea-Bissau, Ivory Coast, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, Sao Tome and Principe, Senegal, Somalia, Togo, Upper Volta, Zaire ................................ 9,083 126,475 Placido L. Mapa, Jr .... .... Guillermo Constain .......... Brazil, Colombia, Dominican Republic, Ecuador, (Philippines) (Colombia) Philippines ........................ ........... 8,416 103,996 Moncef Belkhodja ....... Omar Kabbaj ...... Afghanistan, Algeria, Ghana, Iran, Libya, Morocco, (Tunisia) (Morocco) Oman, Tunisia, Yemen (People's Democratic Republic of) ................................... 7,936 99,243 Alberto Sola ............ David Blanco ...... Argentina, Bolivia, Chile, Paraguay, Uruguay(3) .... 7,872 93,240 (Argentina) (Bolivia) In addition to the Executive Directors and Alternates shown in the foregoing list, the following also served after October 31, 1978: Executive Director End of period of service Alternate Director End of period of service Ernesto Franco-Holguin ...... March 31, 1979 Kwaku Gyasi-Twum ........................ December 31, 1978 (Colombia) (Ghana) Einar Magnussen ...... .. March 31, 1979 Ernest Leung ............................ .. January 31, 1979 (Norway) (Philippines) Gerald S. Aburn ............ .................... February 28, 1979 (New Zealand) Thein Swe ........... .............................. M ay 31, 1979 (Burma) Fumiya Iwasaki ............... ....... June 28, 1973 (Japan) Note: Republic of China (7,750 votes in IBRD and 91,311 votes in IDA), Democratic Kampuchea (464 votes in IBRD and 7,826 votes in IDA), Nicaragua (341 votes in IBRD and 6,242 votes in IDA), and South Africa (3,713 votes in IBRO and 12,445 votes in IDA) did not participate in the 1978 Regular Election of Executive Directors. Cape Verde (266 votes in IBRD and 516 votes in IDA) became a member after that Election. (L) Has resigned effective July 10, 1979; to be succeeded by Seiji Morioka (Japan). (1) Has resigned effective August 31, 1979; to be succeeded by Marthe Parent (France). (3) Member of the Bank only. () Has resigned effective July 22, 1979; to be succeeded by J. W. Keany (Australia). Bank/lIDA Appendices 199 Officers and Department Directors Appendix 8 of the Bank and IDA July 1, 1979 President ........................... ....... ....................................... Robert S. M cNam ara Senior Vice President .................................... 1. P. M. Cargill Regional Vice President, Latin America and the Caribbean ....... ......... Nicolas Ardito Barletta Vice President, Projects Staff ................ Warren C. Baum Regional Vice President, Europe, Middle East, and North Africa ................ Munir P. Benjenk Vice President ................ Bernard Chadenet Regional Vice President, Western Africa ................ Roger Chaufournier Vice President, Development Policy ................ Hollis B. Chenery Vice President, External Relations ................ William D. Clark Vice President and Secretary ................ P. N. Damry Regional Vice President, South Asia ................ W. David Hopper Regional Vice President, East Asia and Pacific .. .............. S. Shahid Husain Vice President and General Counsel .............. .. Lester Nurick Vice President, Administration, Organization, Personnel Management . ............. Martijn J. W. M. Paijmans Vice President, Finance . ................... ........................................ Mo een A. Qureshi Vice President and Treasurer ................................. Eugene H. Rotberg Vice President, Operations . ... ...................................................... E rnest Stern Regional Vice President, Eastern Africa ............. Willi A. Wapenhans Director-General, Operations Evaluation ............. Mervyn L. Weiner Director, Programming and Budgeting Department ............. K. Georg Gabriel Controller ............. Masaya Hattori Director, Projects Department, Eastern Africa ............. Hans A. Adler Director, Country Programs Department I, Western Africa . . ........... Bilsel Alisbah Director, Resident Staff, Indonesia ............. Jean Baneth Director, Country Programs Department 11, Europe, Middle East, and North Africa .......... Maurice P. Bart Director, International Relations Department ............. Shirley Boskey Director, Compensation Department ............. R. A. Clarke Director, Country Programs Department 11, Western Africa . . ........... F. X. de la Renaudiere Director, Development Research Center ..................................... ........ John H. Duloy Director, Industrial Projects Department ... Hans Fuchs Associate General Counsel . . . Heribert Golsong(5) Director, Industrial Development and Finance Department ... David L. Gordon(2) Director, Country Programs Department 11, Eastern Africa ... Andr6 Gue Director, Education Department ... Aklilu Habte Director, Policy Planning and Program Review Department ... Mahbub ul Haq Director, Economic Analysis and Projections Department ... Helen Hughes Director, Urban Projects Department ... .............................................. Edward V. K. Jaycox Director, Population Projects Department ....... .................... K. Kanagaratnam Director, Operations Evaluation Department ............ Shiv S. Kapur Director, Country Programs Department I, Europe, Middle East, and North Africa ......... Attila Karaosmanoglu Director, Tokyo Office .............. ........................................... Akira Kaya Director, Organization Planning Department ........... James M. Kearns Director, Development Economics Department ........... Benjamin B. King Director, Projects Department, East Asia and Pacific . . ......... Syed Salar Kirmani Director, Projects Department, Europe, Middle East, and North Africa . .......... A. David Knox Director, Country Programs Department I, Eastern Africa . .......... Jochen Kraske Director, Country Programs Department 1, Latin America and the Caribbean . .......... Eugenio F. Lari Environmental and Health Adviser, Office of Environmental and Health Affairs . .......... James A. Lee Executive Secretary, Consultative Group on International Agricultural Research . .... ..... Michael L. Lejeune Director, Country Programs Department 11, Latin America and the Caribbean . . . Enrique Lerdau Director, Information and Public Affairs Department . .. John E. Merriam Director, Computing Activities Department .. . Mervin E. Muller Director, Projects Department, South Asia ......... ......................... ........ Robert Picciotto Director, Country Programs Department, East Asia and Pacific ........... Stanley Please Director, Personnel Management Department ........... Hans Pollan Director, Internal Auditing Department ........... Lawrence N. Rapley Director, Energy Department s. .R.o.n... ............................... ............. Yves Rovani Director, European Office ..... .............. .................................. R ainer B. Steckhan Director, Projects Department, Western Africa .. ................ Wilfried P. Thalwitz Director, Administrative Services Department................. . James E. Twining, Jr. Director, Projects Department, Latin America and the Caribbean . ................. Suitbertus M. L. van der Meer Director, Projects Advisory Staff ......... Herman G. van der Tak Director, Development Policy .................. E. Bevan Waide(3) Director, Country Programs Department, South Asia. .............. ... Michael H. Wiehen Director, Transportation, Water, and Telecommunications Department . ............ . Christopher R. Willoughby Director, Agriculture and Rural Development Department . . Montague Yudelman Director, Economic Development Institute ......... To be appointed (') To be effective mid-October 1979. (2) On August 1, 1979, Stokes M. Tolbert will succeed David L. Gordon who will be retiring. (3) To be effective July 16, 1979. 200 Bank/lIDA Appendices World Bank Offices July 1, 1979 Headquarters: 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. New York Office Julian P. Grenfell, United Nations Special Representative for Room 2435, Secretariat Building United Nations Organizations New York, N.Y. 10017, U.S.A. European Office Rainer B. Steckhan, 66, avenue d'lena Director 75116 Paris, France London Office New Zealand House Haymarket London, SW1 Y4TE, England Geneva Office Mahmud Burney, World Bank World Bank Representative to c/o WIPO P.O. Box 18 UN Organizations-Geneva 34 Chemin des Colombettes 1211 Geneva 20, Switzerland Tokyo Office Akira Kaya, Kokusai Building Director 1-1 Marunouchi 3-chome Chiyoda-ku, Tokyo 100, Japan Regional Mission John D. North, Extelcoms House in Eastern Africa Director Haile Selassie Avenue Nairobi, Kenya (mailing address: P.O. Box 30577) Regional Mission Paul Geli, Immeuble Shell in Western Africa Chief 64 Avenue Lamblin Abidjan, Ivory Coast (mailing address: 01 B.P. 1850) Regional Mission Hendrik van der Heiiden, Udom Vidhya Building in Thailand Chief 956 Rama IV Road Sala Daeng Bangkok 5, Thailand Afghanistan James L. Theodores, World Bank Resident Representative P.O. Box 211 Kabul, Afghanistan Bangladesh Alexander Storrar, World Bank Resident Mission Chief 222 New Eskaton Road Dacca, Bangladesh (mailing address: G.P.O. Box 97) Bolivia Rolando Arrivillaga, Banco Mundial Resident Representative Edificio Banco Nacional de Bolivia (40 Piso) Avenida Camacho esq. Calle Col6n La Paz, Bolivia (mailing address: Casilla 8692) Cameroon Raymond Rabeharisoa, World Bank Resident Mission Resident Representative Immeuble Concorde Angle Avenue El Hadj Ahmadou Ahidjo et Avenue J. F. Kennedy Yaounde, Cameroon (mailing address: B.P. 1128) Colombia Ian A. Scott, Banco Mundial Resident Representative Edificio "Aseguradora del Valle" Carrera 10 No. 24-55, Piso 17 Bogota D.E., Colombia (mailing address: Apartado Aereo 10229) Ethiopia Eilert J. de Jong, World Bank Resident Representative I.B.T.E. New Telecommunications Building (First Floor) Churchill Road Addis Ababa, Ethiopia (mailing address: I.B.R.D. Mission, P.O. Box 5515) Ghana Charles V. B. Munthali, World Bank Resident Representative c/o Royal Guardian Exchange Assurance Building, Head Office High Street Accra, Ghana (mailing address: P.O. Box M27) Bank/lIDA Appendices 201 Appendix 9 India Oktay Yenal, World Bank Resident Mission Acting Chief P.O. Box 416 New Delhi, India Indonesia Jean Baneth, World Bank Resident Staff Director Arthaloka Building (8th floor) 2 Jalan Jendral Sudirman Jakarta, Indonesia (mailing address: P.O. Box 324/J KT) Kenya John D. North, World Bank Resident Mission Resident Representative Extelcoms House Haile Selassie Avenue Nairobi, Kenya (mailing address: P.O. Box 30577) Mali Michael F. Carter, World Bank Resident Mission Resident Representative Quartier du Pont, rue Square Lumumba Bamako, Mali (mailing address: B.P. 1864) Nepal Richard G. Abbott, World Bank (IBRD) Resident Representative R.N.A.C. Building (First Floor) Kathmandu, Nepal (mailing address: P.O. Box 798) Nigeria Alan Arben, (1) World Bank Resident Mission Resident Representative 30 Macarthy Street Lagos. Nigeria (mailing address: P.O. Box 127) Pakistan Bastiaan den Tuinder, World Bank Acting Resident Representative P.O. Box 1025 Islamabad, Pakistan Saudi Arabia Guy de Lusignan, World Bank Resident Mission Director Riyadh, Saudi Arabia (mailing address: P.O. Box 5900) Senegal Jonathan C. Brown, World Bank Resident Mission Resident Representative Immeuble S.D.I.H. 3, Place de l'lndependance Dakar, Senegal (mailing address: B.P. 3296) Somalia Cornelius P. Cacho, World Bank Resident Representative c/o Somali Commercial & Savings Bank Building (4th Floor) Mogadishu, Somalia (mailing address: P.O. Box 1825) Sri Lanka David Thomas, World Bank Resident Representative People's Bank Head Office (10th Floor) Sir Chittampalam A. Gardiner Mawatha Colombo, Sri Lanka (mailing address: P.O. Box 1761) Sudan Shawki Farag, World Bank Resident Representative 28 Block 2H, Baladia Street Khartoum, Sudan (mailing address: P.O. Box 2211) Tanzania Anil Gore, World Bank Acting Resident Representative N.I.C. Building(7th Floor, B) Dar es Salaam, Tanzania (mailing address: P.O. Box 2054) Upper Volta Florent Agueh, World Bank Resident Mission Resident Representative Avenue Monseigneur Thevenoud Ouagadougou, Upper Volta (mailing address: B.P. 622) Zaire Roberto Chadwick, World Bank Resident Representative Building UZB, Avenue des Aviateurs Kinshasa 1, Republic of Zaire (mailing address: P.O. Box 14816) Zambia M. Azizul Jalil, World Bank Mission in Zambia Resident Representative Kulima Tower (13th Floor) Katunjila Road Lusaka, Zambia (mailing address: P.O. Box 4410) (') To be succeeded by Ronald Fennell, September 1, 1979. Photo Credits Cover: Yosef Hadar Frontispiece: Kay Chernush Page 23: Caroline Sewell Page 33: Peter Muncie Page 41: Pamela Johnson Page 47: Tomas Sennett Page 55: Kay Chernush Page 63: Tomas Sennett Page 69: Edwin Huffman World Bank European Office: Headquarters: 66, avenue d'Iena 1818 H Street, N,W. 75116 Paris, France Washington, D.C. 20433, U.S.A. Tokvo Office: Telephone: (202) 477-1234 Kokusai Building Cable address: INTBAFRAD 1-1 Marunouchi 3-chome WASHINGTONDC Chiyoda-ku, Tokyo 100, Japan I 5K