And Finance 84 Contents 5

\R I DA-1l\Tl 20081 Public Disclosure Authorized A, Public Disclosure Authorized

.~~~~~~~~~~~~~~~~9. .;; . . , ~ -m Public Disclosure Authorized Public Disclosure Authorized

WORLDBANK

World Bank 1818 H Street, N.W. Washington, D.C. 20433 Cover: Construction of schools forms an important component of a $19 million IDA credit to Sri Lanka for the development of irrigated agriculture through diversion of the waters of the country's major river, the Mahaweli Ganga. This photo shows a teacher and part of her class in one of the schools built for the Mahaweli Ganga scheme's colonists.

Frontispiece: A worker seen through a cylinder Photo Credits designed for an oil refinery and manufactured by Cover: Ray Witlin Bharat Heavy Electricals, Ltd. of Hyderabad, Frontispiece: Ray Witlin India. A $40 million Bank loan, channeled Page 27: James Pickerell through the Industrial Development Bank of India Page 36: Ray Witlin through.theDevelopment industrial Bank of India Page 41: Peter Muncie to state financial corporations provided the Page 47: Mary M. Hill foreign exchange needed by small and medium- Page 55: William Graham sized industries for the purchase of imported Page 61: Jaime Martin-Escobal capital goods. Page 73: Ray Witlin 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 IDA's more industrialized Corporation (IFC). and developed members, special contributions The common objective of these institutions by IDA's richer members, and transfers from is to help raise standards of living in devel- the net earnings of the World Bank. The terms oping countries by channeling financial of 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. An annual service The World Bank, established in 1945, is fee of 0.75% is charged on the disbursed owned by the governments of 135 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 113 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 guideline 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 and on terms concern for the urban poor, who benefit from that 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 "core" 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, but it is being redirected $625 (in 1978 dollars). More than 50 countries towards becoming more responsive to the new are eligible under this criterion. strategy of deliberately focusing on the poorest Membership in IDA is open to all members segments 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-1971-1980 8

Chapter One: The World Bank, Fiscal 1980, in Brief 9

Chapter Two: 1971-1980-A Global Perspective 15

Chapter Three: 1971-1980-Regional Perspectives Eastern Africa 25 Western Africa 32 East Asia and Pacific 39 South Asia 45 Europe, Middle East, and North Africa 52 Latin America and the Caribbean 59

Chapter Four: Bank Policies and Activities, Fiscal 1980 Bank Policies Structural Adjustment Lending 67 Co-financing 68 Currency Pooling 70 Health 71 Education 71 Bank Activities Economic Development Institute 74 Technical Assistance 75 Interorganizational Cooperation 77 Economic Research and Studies 80 Operations Evaluation 81 Internal Auditing 83

Chapter Five: Borrowings and Finance 84 Contents 5

Chapter Six: Executive Directors Executive Directors 95 Joint Audit Committee 96

Projects Approved for Bank and IDA Assistance in Fiscal 1980, by Sector 97 Projects Approved for Bank and IDA Assistance in Fiscal 1980, by Region 119 Projects Approved for Bank and IDA Assistance in F'iscal 1980, by Purpose 121

Statistical Annex Index 127 General Notes to Annex Tables 128 Tables 1-10 130

Bank Appendices Index 149 Financial Statements 150

IDA Appendices Index 165 Financial Statements 166

Bank/IDA Appendices Index 179 Appendix 1: Bank and IDA Cumulative Lending Operations, by Major Purpose and Region, June 30, 1980 180 Appendix 2: Bank and IDA Cumulative Lending Operations, by Country, June 30, 1980 182 Appendix 3: Statement of Loans Approved during Fiscal Year 1980 185 Appendix 4: Statement of Development Credits Approved during Fiscal Year 1980 190 Appendix 5: Administrative Budgets of the Bank and IDA 194 Appendix 6: Governors and Alternates of the Bank and IDA 195 Appendix 7: Executive Directors and Alternates of the Bank and IDA 197 Appendix 8: Officers and Department Directors of the Bank and IDA 198 Appendix 9: World Bank Offices 199 181 tvw,XI I

Illia t

A Iff

ImA, C,

I I ,V 7 The Executive Directors and Alternates

Executive Directors Alternates

John Anson Derek F. Smith Moncef Belkhodja Omar Kabbaj Jacques de Groote Herbert Sutter Earl G. Drake Reno J. Brown Said E. El-Naggar Saleh A. Al-Hegelan J. W. Keany Sang-Chul Suh Colbert I. King David S. King Eberhard Kurth Hans-Dieter Hanfland Anthony IJ. A. Looijen Miodrag M. Stojiljkovic Hans Lundstr6m Valgeir Arsaelsson Austin H. Madinga Y. S. M. Abdulai Placido L. Mapa, Jr. Guillermo Constain Eduardo Mayobre Roberto Mayorga-Cortes Paul Mentr6 de Loye Marthe Parent Seiji Morioka Kimiaki Nakajima M. Narasimham M. Syeduz-Zaman Armand Razafindrab6 Nicephore Soglo Giorgio Rota Rodrigo M. Guimaraes Alberto Sola David Blanco Zain Azraai Aung Pe

The Executive Directors of the The Directors express their International Bank for appreciation to the more than 5,000 Reconstruction and Development men and women staff members of and the International Development the Bank for their dedication to the Association have had prepared this institution's ideals. They note that the Annual Report for the fiscal year continued professionalism of the staff July 1, 1979 to June 30, 1980 in has made it possible for the Bank to accordance with the By-Laws of the increase its operations without two organizations. Robert S. decreasing the attention paid to McNamara, President of the Bank economic analysis and project and the Association and Chairman appraisal, supervision, and evaluation. of the Boards of Executive Directors, has submitted this The Annual Reports of the Report, together with accompanying International Finance Corporation administrative budgets and audited and the International Centre for financial statements, to the Boards Settlement of Investment Disputes of Governors. are published separately.

June 30, 1980 8 The Record for Ten Years-1971-80

Fiscalyear 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980

World Bank

US$millions Loanamounts 1 1,921 1,966 2,051 3,218 4,320 4,977 5,759 6,098 6,989 7,644 Disbursements2 915 1,182 1,180 1,533 1,995 2,470 2,636 2,787 3,602 4,363 Total income 578 646 758 929 1,157 1,330 1,617 1,947 2,425 2,800 Net income 212 183 186 216 275 220 209 238 407 588 Total reserves 1,444 1,597 1,750 1,772 1,902 1,916 2,026 2,245 2,498 2,893 Borrowings:total 1,368 1,744 1,723 1,853 3,510 3,811 4,721 3,636 5,085 5,173 Borrowings:net 819 1,136 955 990 2,483 2,530 3,258 2,171 3,235 2,382 Subscribedcapital 23,871 26,607 30,397 30,431 30,821 30,861 30,869 33,045 37,429 39,959

number Operationsapproved 78 72 73 105 122 141 161 137 142 144 Borrowingcountries 42 40 42 49 51 51 54 46 44 48 Membercountries 116 117 122 124 125 127 129 132 134 135

Professionalstaff (number) 1,348 1,516 1,654 1,752 1,883 2,066 2,203 2,290 2,382 2,474

IDA US$millions Creditamounts 584 1,000 1,357 1,095 1,576 1,655 1,308 2,313 3,022 3,838 Disbursements 235 261 493 711 1,026 1,252 1,298 1,062 1,222 1,411 Usableresources, cumulative 3,343 4,204 7,019 7,433 11,608 11,514 11,789 18,062 19,661 20,773

number Operationsapproved 3 51 68 75 69 68 73 67 99 105 103 Borrowingcountries 34 38 43 41 39 39 36 42 43 40 Membercountries 107 108 112 113 114 116 117 120 121 121

XExcludes loans to IFC of $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 FY1976and FY1977lent on Third Windowterms. a Excludesdisbursements on loansto IFC. Joint Bank/IDAoperations are counted only onceas Bankoperations. 9 Chapter One The World Bank: Fiscal 1980, in Brief

In fiscal 1980,1 the World Bank, together -Co-financing of Bank-assisted and IDA- with its affiliates, the International Develop- assisted projects amounting to $6,521 million, ment Association (IDA) and the International up $3,273 million (101%) over comparable Finance Corporation (IFC), made lending and fiscal 1979 amounts: investment commitments of $12,162.3 mil- -An increase in the Bank's net income lion. In fiscal 1979, the comparable figure from $407 million in fiscal 1979 to $588 mil- amounted to $10,435.9 million. Bank and IDA lion during the past year; and commitments in fiscal 1980 amounted to -Bank borrowings of $5,173 million, mostly $11,481.7 million; the comparable amount in in the capital markets of Europe and Japan. fiscal 1979 was $10,010.5 million.2 Thirty-four percent of the Bank's lending The World Bank committed $7,644.2 mil- was to countries with annual per capita gross lion in support of 144 projects in 48 develop- national products (GNP) of $625 or less (in ing countries. In the previous year, commit- terms of 1978 dollars). Virtually all IDA com- ments of $6,989.0 million were made to help mitments were for projects in this group of finance 142 projects in 44 countries. countries. Most IDA commitments-87%- IDA commitments in fiscal 1980 totaled were to the poorest of developing countries- $3,837.5 million. One hundred three projects those with annual per capita gross national were assisted in 40 countries with IDA fi- products of $360 or less. The fiscal 1980 figures nancing. IDA credits in fiscal 1979 amounted for distribution of lending by country income to $3,021.5 million; 105 projects in 43 develop- differ little from those of recent years. ing countries were aided in that year. Sectoral composition of lending. As far as World Bank loans and IDA credits ac- the sectoral composition of Bank and IDA counted for about 30% of the total costs of the lendin is concerned there were, as miht be projects supported during the year. eed,g varns , s gyears. Investments by the IFC amounted to $680.6 expected, variations from previous years. million in fiscal 1980 Fifty-five investments Single-year figures on the distribution of Bank werelapproved in 30 coutrie and IDA commitments most often reflect only ther h ghlights 3ncluresd a one-year step in the Bank's lending to its bor- -The agreement by the Bank's Board of rowing member countries rather than a change Governors to the recommendations made in in its lending program. late fiscal 1979, by the Executive Directors of On occasion, however, the variations are Ate Ban tha t, instit .uth' a ori cp significant. Within the energy sector, lending the Bank that the institution's authorized cap- for oil, gas, and coal, for instance, rose almost ital stock be increased by an aggregate amount fourfold during the year, in terms of both equivalent to $44,000 million; commitments and percentage, over fiscal 1979. -The agreement on a Sixth Replenishment Such lending comprised 4% of total Bank and of IDA resources for the period, fiscal 1981- IDA commitments in fiscal 1980, a percentage 83, in the equivalent of $12,000 million; . . . -Disbursements by the Bank and IDA of that is expete to icrease in the future In- $5,774 million ($4,363 million by the Bank craeinldngfrolndasreteeut and $1,411 million by IDA). Bank disbursements were $761 million (21 %) above those 'The fiscal year of the World Bank, as weii as of its two in fiscal 1979. IDA disbursements were $189 affiliates, runs from July I to June 30. million (15%) higher than in the previous year; Since the real value of loan commilments by the Bas k and IDA is eroded to the extent that cost inflation occurs over -A net transfer of resources (disburse- the period of disbursements, it is the practice of the Bank to make allowances for inflation at the time of commitments minus repayments of principal, interest, ment. The deflator now used to express lending in real and other charges) by the Bank and IDA of termsis a weighted average of the price levels assumed to be prevailing over the period of the execution of a project. $2,632 million, up $475 million (22%) from If fiscal 1980 Bank and IDA commitments were to be expressed in terms of i979 dollars, they would be $10,667 fiscal 1979; million, or 6.7% higher in real terms. 10 The World Bank: Fiscal 1980, in Brief

sectors provision for finance of energy pricing, energy use studies, etc., as well as organiza- Note on Dollar Amounts tional assistance and training. Dollar amounts used in the text As noted earlier, significant variations from of the Annual Report refer to cur- one year to the next in lending patterns may rent United States dollars. Where reflect only a one-year step in the Bank's lend- special drawing right (SDR) amounts are used for the capital of ing program. Again, within the energy sector, the Bank, one SDR equals 1.32438 the increase, from 14% of the total to 21 %, in current United States dollars at lending for power was, to a large extent, oc- June 30, 1980 (one SDR equaled casioned by the arrival, during the same year, lars at June 30, 1979). at the end of the project cycle of three parti- For a detailed discussion and the cularly costly projects: in Argentina (a $210 basis for SDR amounts used for million loan for a $3,781 million project), IDA subscriptions and contribu- India (a $300 million credit for a $914 million tions, see Notes to Financial State- project), and Indonesia (a $253 million loan for a $694 million project). As in past years, however, lending in support of agriculture and rural development projects absorbed the greatest share of Bank and IDA commitments (30% of the total). Of the 85 projects in the sector, 47, or 55%, were for rural development, and were, therefore, proj- of the decision in fiscal 1977 to consider financ- ects in which the anticipated benefits accrue ing petroleum development, and which was fol- primarily to the rural poor. On the basis of lowed up early in 1979 by approval of a pro- staff estimates, projects approved during fiscal gram to accelerate petroleum production in 1980 in agriculture may directly benefit some the developing countries. This new program 4.8 million farm families and could, at full included provision for financing exploration, development, result in the incremental produc- as well as production. tion of 3.4 million metric tons of cereals. To date, the program has helped finance 18 Fiscal 1980 also saw the beginning of a new petroleum projects in 16 developing countries. form of program assistance-lending for struc- Of these projects, nine are mainly for pre- tural adjustment-that seeks to aid developing development activities-five for exploration countries in adjusting to the permanent or long- promotion, including technical assistance and term changes in the world's economic environ- geophysical surveys; two for the evaluation of ment. Three structural adjustment loans were discovered reserves; and two (Morocco and approved in fiscal 1980 for a total of $305 Tanzania) in the new field of exploratory million. Structural adjustment lending is ex- drilling. The other nine are mainly for produc- pected to reach from between $600 million and tion; they include two engineering credits, four $800 million in fiscal 1981. For a complete projects for the transport and distribution of record of the recent composition of Bank and natural gas, and three production projects, two IDA lending by sector, see the table on page 66. of which include components for rehabilitation of producing oil fields. Bank staff. During fiscal 1980, the Bank's The approved program also recognized the staffing activities continued to emphasize the need of many developing countries in drawing need to recruit highly qualified staff from as up and implementing national energy plan- wide a spread of nationalities and as equitably ning activities. To this end, the Bank has between sexes as possible. During the year, 647 launched a series of energy sector reviews and new staff members reported for duty, including has begun to develop a program of technical 301 at specialist level positions, of which 112, assistance for energy planning. The purpose or 37%, came from developing countries. By of the energy sector reviews, 14 of which were June 30, 1980, 98 nationalities were repre- substantially completed in fiscal 1980, is to sented in the specialist staff, of which nearly identify policy issues and priorities for action. 33% represented staff from developing coun- They help provide member governments with tries. At the end of fiscal 1979, there were 97 impartial advice and, in addition, assist in nationalities, including 32.5% from develop- identifying energy sector projects for finance ing countries. Representation of staff from by the Bank or other sources. The technical developing countries among the senior ranks assistance aspect has, so far, been achieved of the Bank, that is, those at the managerial through adding to projects in the energy sub- level and above, amounted to 27.5% of the IDA 11 total, as opposed to 22% at the end of fiscal dines, Seychelles, and Zimbabwe and in IDA 1975. for Djibouti, Dominica, Solomon Islands, The special efforts made in the last few years United Arab Emirates, and Zimbabwe. to give greater strength to the representation of women in nonsecretarial positions has had IDA. After a series of meetings involving only a slight impact on the aggregate of their representatives of governments of prospective representation. Women now represent 12% contributors to a Sixth Replenishment of IDA of specialist staff as against 11.4% at the end funds, which resulted in general agreement, a of fiscal 1979. Women accounted for just report to the Governors on the Association's under 19% of recruitment during the year. funding for the three-year period, fiscal 1981- The slow net rate of recruitment of women is 83, was approved by the Executive Directors partly attributable to a higher rate of turnover in January 1980. for women compared with men (11.3% as The agreement, which provides the basis on against 8.6% in fiscal 1980), often for family which IDA donors will work to obtain legisla- reasons, and to the limited market from which tive approval of the additional resources, calls to recruit specialist female staff with technical for funding in an amount totaling the equiva- skills. lent of $12,000 million.3 It provides that the 26 In fiscal 1980, the Bank was able to place governments that contributed to the funding of more readily than in the past women in its IDA's Fifth Replenishment will be joined by operating departments as loan officers, country seven first-time donors in the funding of the economists, and, notably, financial analysts, Sixth Replenishment: Argentina, Brazil, rather than finding them assignments in the Greece, Mexico, Portugal, Romania, and support departments. A main reason was the Venezuela. success of the Young Professionals Program in The $12,000 million figure provides for a drawing to the Bank women professionals who significant increase, in real terms, over the ultimately work in the operating departments. $8,700 million total available for the Fifth Some 42% of specialist women staff are now Replenishment period, but, as a percentage of assigned to operating departments. the contributors' gross domestic product for The Young Professionals Program is the the two periods, fiscal 1978-80 and fiscal 198 1- channel through which the Bank recruits 83 (estimated), donations to both the Fifth highly qualified, professionally flexible staff and Sixth Replenishments would be the same aged 30 years and under. Most are economists -0.046%. and financial analysts, but there are also a The agreement calling for a real increase in small number of staff with other skills. In fiscal IDA resources was based on the belief of the 1980, 49 men and women were recruited and 33 governments involved that sustained prog- reported for duty. Of these, 37% were women ress in reducing poverty in the poorest coun- and 47% were from developing countries. This tries would be impossible without an accelera- is the highest representation of these two tion in their growth rates-and that external groups ever achieved through the program. assistance on appropriate terms could play a Also during the year, the Boards of Gov- critical supporting role in efforts by the poorest ernors of the Bank, IDA, and IFC adopted a countries to mobilize domestic resources to statute establishing a World Bank Administra- achieve faster growth. tive Tribunal to adjudicate staff grievances. The replenishment will become effective This action extends to World Bank staff mem- when "Instruments of Commitment" and bers the judicial protection already afforded to "Qualified Instruments of Commitment" are the staff of other international organizations deposited for about 80% of the total replenish- (such as the United Nations and most of the ment. The former is a formal notification to specialized agencies) through an independent IDA that the donor country will pay the full administrative tribunal, established by the or- amount of its contribution. The latter is a ganizations, to which they have agreed to formal notification that the donor will pay part submit staff grievances for adjudication.

St. Lucia joined the Bank Bank membership.Bankmembership. St. Lucia joined the .Brnk In June 1980, the Executive Directors of the IDA author- in June 1980, bringing the total membership of ized IDA commitments, as well as the repayment obligations to be in special drawing the Bank to 135; IDA membership remained rights of(SDRs), IDA borrowers, beginning withexpressed the Sixth Replenishment. at 121. The action was taken so as to reduce the impact of fluctu- commitmentauthority, At the end of the fiscal year,fiscalear, actionacion was toations allow in forexchange more accuraterate-s on planning IDA's of the timing of pro- pending on membership in the Bank for Dji- posed credits, and to reduce the possibility of a shortfall in the resources needed to meet disbursements of com- bouti, Dominica, St. Vincent and the Grena- mitments. 12 The World Bank: Fiscal 1980, in Brief

Bank and IDA: Lending to Countries with Annual per Capita Income 4,206.3 below $360, 1971-80 (US$millions. Fiscal years.)

Bank IDA Total 3,872.5

4,500

4,000

2,883. 3,500 2,606.5

3,000

2,490.4 : C *2,228.5 7' a o2,012.7

2,500

1,266.0 2,000 1,494.6 ~~~~~~~~~~~870.0 1,494.6 1,151.7 1,076.8

1,500 871.0

1,011.4 958

1,00O 773.5

1980

500 1 1979Ef : 0; 237.8 1978 1977 1978

1971-75 1 1978dollars. AnnualAverage The Sixth Replenishment: Table of Proposed Contribzutions 13

IDA: Proposed Contributionsto the Sixth Replenishment' (In millions.) Percent of National US$ SDR total proposed Country currency equivalent equivalent contribution Argentina $a 37,087.50 25.00 19.07 0.21 Australia $A 203.53 229.20 174.83 1.91 Austria S 1,034.20 81.60 62.25 0.68 Belgium BF 5,743.58 201.60 153.78 1.68 Brazil 2 Cr$ 1,484.25 50.00 38.14 0.42 Canada Can$ 601.81 516.00 393.61 4.30 Denmark DKr 743.04 144.00 109.85 1.20 Finland Fmk 268.34 72.00 54.92 0.60 France F 2,672.78 645.60 492.47 5.38 Germany, Federal Republic of Ordinary DM 2,535.41 1,440.00 1,098.46 12.00 Extra DM 105.64 60.00 45.77 0.50 Greece Dr 220.85 6.00 4.58 0.05 Iceland IKr 1,373.76 3.60 2.75 0.03 Ireland LIr 6.23 13.20 10.07 0.11 Italy Lit 377,223.00 462.00 352.42 3.85 Japan Ordinary ef 322,992.00 1,440.00 1,098.46 12.00 Extra y 71,224.22 317.54 242.22 2.65 Korea, Republic of W 1,452.00 3.00 2.29 0.03 Kuwait KD 55.20 200.00 152.56 1.67 Luxembourg Lux F 170.94 6.00 4.58 0.05 Mexico Mex$ 455.85 20.00 15.26 0.17 Netherlands f. 704.16 360.00 274.61 3.00 New Zealand $NZ 10.00 10.02 7.65 0.08 Norway NKr 708.84 144.00 109.85 1.20 3 Portugal ' Esc 343.71 7.00 5.33 0.06 Romania' lei * * * * Saudi Arabia SRls 1,304.55 390.00 297.50 3.25 South Africa R 8.26 10.00 7.63 0.08 Spain Ptas 3,303.90 50.00 38.14 0.42 Sweden SKr 1,497.24 360.00 274.61 3.00 United Arab Emirates' Dh 300.96 79.20 60.42 0.66 United Kingdom £ 554.97 1,212.00 924.58 10.10 United States $ 3,240.00 3,240.00 2,471.53 27.00 Venezuela' Bs 85.85 20.00 15.26 0.17 Yugoslavia Din 381.14 20.00 15.26 0.17 Unallocated 161.44 123.15 1.32 TOTAL 12,000.00 9,153.86 100.00

This table is based on IMF representative exchange rates and the SDR value of currencies published by the IMF on October 5, 1979. 2 Brazil intends to pay $20.44 million equivalent of its contribution to the Sixth Replenishment through release in usable form of the 90% portion of its initial subscription in the Association. ITentative figures, since as of December 12, 1979, Iceland and Portugal were not in a position to make a decision on these amounts. 4 Portugal, Romania, United Arab Emirates, and Venezuela are not yet members of IDA, but are considering membership in connection with the Sixth Replenishment. *Romania has previously stated its intention to participate.

of its contribution without qualification, but of the total Sixth Replenishment amount had that payment of the remainder is subject to not been deposited by the end of fiscal 1980. obtaining necessary legislative appropriations. The resolution enabling IDA to accept the ICSID. During fiscal 1980, the number of resources under the replenishment was ap- Contracting States increased by four to 79. By proved by the Governors on March 26, 1980. June 30, 1980, an additional five States had However, the agreement is not yet effective be- signed the Convention on the Settlement of cause the necessary instruments for about 80% Investment Disputes between States and Na- 14 The World Bank: Fiscal 1980, in Brief tionals of Other States, but had not yet As a result of promotional work initiated ratified it. over two years ago, the number of projects The Centre's own Annual Report provides undertaken in the least developed and smaller details of its membership and activities. member countries continued to increase, with about half of fiscal 1980's projects being in IFC. IFC is the World Bank affiliate estab- countries with less than $626 per capita GNP. lished to further economic development by en- About half of IFC's investments went to couraging the growth of productive private en- support enterprises in the manufacturing sec- terprises. In addition to providing and helping tor, a considerably smaller proportion than in raise loan and equity capital, the Corporation previous years. Of the balance, 25% were for works to raise investor confidence and promote mining and energy projects, 9% for financial investment opportunities in the developing institutions, 4% for agrobusiness, and 4% for world. To this end, it uses its own resources to service industries. assist investors structure and assemble the In its traditional role as a catalytic agent for necessary financing, technology, and manage- assisting investors to raise needed financing, ment needed to establish productive enter- the Corporation continued to expand its syndi- prises. cation operations. Of the $681 million financ- The Corporation is in the midst of a major ing approved, the Corporation was able to expansion and reorientation of its activities. syndicate $267 million to other financial insti- Supported by a capital increase, it is not only tutions, mainly commercial banks in the devel- expanding the amount and number of invest- oped countries, but also, for the first time, ments and adding to the number of countries several institutional investors. in which it is active, but it is also redirecting its Member countries continued to take up operations into new sectors-especially into the their subscriptions in the capital increase ap- development of renewable and nonrenewable proved by the Corporation's Board of Gov- resources-and into its least developed mem- ernors in late 1977. By the end of the fiscal ber countries. year, $338 million of the $480 million of- Total dollar volume of equity and loan in- fered had been subscribed and $192 million vestments increased to $681 million over the paid in. previous year's $425 million and the number During the year, Barbados, Burundi, Fiji, of projects increased to 55 from 48. The total and Niger took up membership, raising IFC's cost of these projects is estimated to be membership to 113. $2,337 million. 15 Chapter Two 1971-1980-A Global Perspective

The decade of the 1970sI was marked by was spread fairly evenly among the major a series of economic shocks: a notable slow- countries and was particularly marked in the down in the growth of the developed countries, manufacturing sector.3 This slowdown was coupled with high rates of inflation; a dramatic caused by a complex set of forces, including rise in the price of crude oil, with its wide- lagging investment and declining growth in ranging effects, which included a deterioration productivity in some countries, an inflationary in the terms of trade of the oil-importing devel- spiral with strong cost-push pressures, and oping countries, hard hit also by increases in sharp increases in energy prices. Performance the costs of imported capital goods and food; was uneven, however, over the years. Growth a massive build-up of liquidity in the interna- was unusually strong between 1970 and 1973, tional capital markets; and unusually large averaging 5.1 % annually. In 1974 and 1975, fluctuations in commodity prices. industrial production fell sharply in almost In the face of these events, however, the every industrialized country. This two-year world community demonstrated its ability to slump was followed by moderate growth adjust to major and sudden change. That the (4.2% a year) in the period, 1976-78. The poorer nations of the community were able to close of the decade saw the beginning of yet so adjust-notwithstanding, in addition to these another round of deterioration in the collective shocks themselves, the protectionist pressures economic activity of the industrialized nations. in the industrialized countries, a worsening Japan, Germany, and Italy experienced rea- food problem (especially in sub-Saharan Af- sonably strong growth in 1979; in contrast, rica), mounting social pressures, and an in- growth in the United Kingdom and the United crease in the number of absolute poor-stands States was relatively weak. Preliminary figures as a testament to their efforts to face the occur- indicate that the GNP growth of developed rences characterizing the decade. The extraor- countries as a group slowed in 1979 to 3.3%, dinary adjustment to the huge payments down from the 3.9% achieved in 1978. imbalances of the mid-seventies came largely The slowdown in economic activity of the through the private banks' "recycling" of finan- developing countries during the 1970s was cial resources, through rapidly rising imports slight overall; aggregate growth averaged 5.3% of goods and services by, and workers' remit- a year in the 1970s, as compared with 5.6% tances from, capital-surplus countries, and annually in the 1960s. The aggregate growth through fiscal, monetary, and exchange rate in GNP in 1979 is estimated to have been policy actions. 4.3%. As might be expected, growth during The economic cost of adjustment in terms the 1970s in the oil-exporting developing of, say, loss of development momentum and, countries 4 was higher than in the previous in some cases, amassed indebtedness, was con- 10-year period (6.1% as opposed to 5.5%). siderable. The difficulties faced by the least Although lower than in the 1960s (5.6%), the developed countries remained particularly severe throughout the decade. The formidable task of adjusting fully to the new economic I For the purposes of this Annual Report, the decade of the environment remains the main challenge to 1970s is the period 1971-80, unless otherwise stated. the developingthe countriesdevlopingcountres as thehe newdecadenew decade 2France. Australia, the Austria, Federai Belgium,Republic Canada,of Germany, Denmark, Iceland, Finland, Ire- begins. land, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Sweden, Switzerland, the United King- dom, and the United States. I Energy-intensive agriculture, which is practiced in most Growth in the Decade developed countries, was also affected by increases in oil prices, as the costs of gasoline, fertilizers, insecticides, and The gross national product (GNP) of the herbicides all rose. Productivity, however, increased in 2 equal measure. industrialized countries, grew at an average I Algeria, Angola, Bahrain, Bolivia, Brunei, Congo, Ecua- of 3.1 % a year in the 1970s, as compared with dor, Egypt, Gabon, Indonesia, Malaysia Mexico Nigeria, Oman,5Syria, Trinidad and Tobago, Tthnisia, Venezuela, 5.0% a year in the 1960s. The slower growth and Zaire. 16 1971-1980-A Global Perspective

Growth of Gross National Product and Gross National Product per Capita, 1960-80 (Average annual percentage growth rates. At 1977 prices.) GNP GNP per capita 1960-70 1970-80 1960-70 1970-80 All developing countries 5.6 5.3 3.1 2.9 Low-income countries 4.2 4.0 1.8 1.7 Africa (sub-Saharan) 4.2 3.0 1.7 0.2 Asia 4.2 4.2 1.8 2.0 Middle-income countries 6.0 5.6 3.5 3.1 East Asia and Pacific 7.7 8.0 4.9 5.7 Latin America and the Caribbean 5.7 5.8 2.9 3.2 North Africa and Middle East 3.6 6.4 1.1 3.8 Africa (sub-Saharan) 4.8 4.5 2.3 1.6 Southern Europe 7.0 4.6 5.6 3.2 Industrialized countries 5.0 3.1 3.9 2.4

Capital-surplus oil exporters 2 10.5 8.4 7.3 5.0 Centrally planned economies -3 5.2 - 3.8

See text footnote "2" in this chapter. Iran, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, and the United Arab Emirates. They are not considered as developing countries for the purposes of analysis in this chapter. Not available. Source: World Bank estimates.

aggregate GNP growth of the oil-importing gions was one of the more significant and frus- developing countries, at 5.1 % in the 1970s, trating occurrences of the decade. was still impressive in the face of the many Inflation 9 in the developed countries may difficulties encountered. If the countries of perhaps be remembered by them as the bane Southern Europe are excluded, their perform- of the 1970s. The gross domestic product ance in the 1970s actually surpassed that of the (GDP) dollar deflator, which increased an- 1960s. As indicated by GNP rates of growth, nually by 3.1% in the 1960s, rose at an esti- the oil-importing developing countries were mated annual rate of 10.1 % in the period, largely able to overcome the handicaps posed 1971-79. The average of the yearly increases by the rise in crude oil prices that occurred at in the GDP deflator for the 1960s and 1970s, the end of 1973. Their ability to do so may be expressed in national currencies and thus im- explained by the vigorous adjustment policies mune to distortions resulting from the fluctua- they pursued in the wake of those initial in- tions of the US dollar against other currencies, creases.5 The implementation of their policies was 3.4% and 8.0%, respectively. Inflation was facilitated by the countries' ability to ob- was already running at high rates before the tain external financial resources (and thereby first sharp increase in crude oil prices that took contract additional debt). Performance of in- place at the end of 1973. Most of the impact of dividual developing countries, as in the 1960s, was very uneven. 5 The middle-income,6 oil-importing coun- In most cases, during the adjustment process, countries tries in the East Asia and Pacific Region, accepted large current account deficits (caused by a sud- which includes several important industrial- earnings)efinng thest froimpbortsrelative to export ized, export-oriented countries, maintained their took steps to reduce their current account deficits to levels 5that could be financed over the medium term. impressive performance of the 1960s, as did Above a $360 GNP per capita in 1978. the middle-income countries in Latin Amer- 7GNP per capita of $360 or below in 1978. 7 5 ica. Growth in low-income, oil-importing The decade of the 1970s apparently marked the beginning, even in Africa, of a decline in the crude birth rate Asia was not as high in the 1970s (3.4%) as throughout the developing world. This decline in the crude birth rate was general and widespread; it occurred in the 1960s (4.1%), in spite of the improve- in 77 of the 88 developing countries for which estimates ment in India's agricultural performance. In are available, and evidence suggests that the decline appears to be gathering momentum. the middle-income and low-income, oil-import- Inflation can be measured in terms of several indices, ing countries of sub-Saharan Africa, growth their appropriateness depending on the problem being analyzed. The analysis in this Annual Report employs a rates also fell. In fact, growth in low-income weighted index of industrialized country GDP deflators Africa in the 1970s, at 3.0%, barely kept pace convernedto US dotlars, a weighted index of industrial- 5 szed country GDP deflators expressed in national cur- with the rise in population. The increasing rencies, and an International Price Index, i.e., the index of c.i.f. US dollar prices of industrialized country manu- disparity among the various developing re- factured exports to developing countries. World Trade Growth Rate Declines 17

Growth of Gross National Product and Gross National Product per Capitafor Oil-importingand Oil-exportingDeveloping Countries, 1960-80 (Average annual percentage growth rates. At 1977 prices.) GNP GNP per capita 1960-70 1970-80 1960-70 1970-80 Oil-importing developing countries 5.6 5.1 3.1 2.7 Low-income countries 4.1 3.3 1.6 0.9 Africa (sub-Saharan) 4.2 3.0 1.6 0.2 Asia 4.1 3.4 1.6 1.1 Middle-income countries 6.1 5.5 3.6 3.1 East Asia and Pacific 7.8 8.0 4.9 5.6 Latin America and the Caribbean 5.4 6.0 2.7 3.5 North Africa and Middle East 2.3 3.0 -0.2 0.4 Africa (sub-Saharan) 4.9 3.9 2.4 0.9 Southern Europe 7.0 4.6 5.4 3.2 Oil-exporting developing couintries 5.5 6.1 2.8 3.5 All developing countries 5.6 5.3 3.1 2.9 l See text footnote "4." Source: World Bank estimates.

the oil price increases was felt in 1974 and were major differences among the various 1975. After a brief respite, inflation again ac- groups of countries. For example, the growth celerated towards the close of the decade. in the volume of exports from the middle-in- Inflation had diverse effects on the econo- come, oil-importing countries, a group that mies of the developed, as well as the develop- includes the newly industrialized developing ing, countries. For example, the tight fiscal and countries,' 2 maintained its rapid momentum monetary policies pursued by the developed of the 1960s. During the decade, there was a countries in response to inflation slowed slow but steady change in the trading pattern growth and thus hampered increases in the of the developing countries as they expanded volume of exports by the developing coun- trade among themselves at a faster rate (8%) tries. The effect of inflation on countries with than they expanded their total trade (5% ). large debts and high, fixed-interest debt-ser- The unit value of world merchandise ex- vice payments was favorable, however, as the ports rose by 12% yearly during 1970-78, real burden of repaying their debts was re- reflecting, in part, global inflationary trends. duced. The effect of inflation on the terms of But price movements within the various cate- trade depended on the composition of the par- gories were highly divergent. Not surprisingly, ticular country's exports: generally speaking, the most remarkable changes occurred in the the terms of trade of the exporters of petro- prices of energy and, later in the decade, in the leum and manufactured goods were not ad- prices of precious metals. Crude oil prices, versely affected, and may have even improved. which had steadily declined in real terms in the 1950s and 1960s, rose nearly fivefold in World Trade Growth Rate Declines real terms 22 during the 1970s. These increases came largely in two sharp spurts, one towards There was a slowdown during the 1970s in the end of 1973 and another towards the end the growth rate in the volume "I of world trade of 1979. (6%) relative to that of the 1960s (8%). As The price behavior of nonoil primary com- in the 1960s, the volume of exports from the modities was both erratic and generally weak developed countries expanded at a faster rate during the decade. There was a sharp increase (6.7%) than that from the developing coun- during the 1970s in the volatility of the prices tries (5.4% ). The slowdown in the rate of growth of exports from developing countries was due largely to the performance of fuels.-1 "OImplicit growth in volume is computed as merchandise The developing countries' export performance trade at constant 1977 US dollar prices for 1970-77. of petroleum in manufactures in the 1970s exceeded that of "Tbetainable volume rate, tripling betweenexports 1960 expanded and 1973. at Since an unsus- 1976, the 1960s in spite of significantly lower growth however, the export volume has remained virtualLy un- chaniged. in the industrialized countries and emerging '3For example, the Republic of Korea and Singapore. protectionist pressures there. Again, there "Deflated by the IPI. 18 1971-1980--A Global Perspective

Total Merchandise Exports (US$ millions at constant 1977 prices.) Average annual growth rates (%) 1960 1970 1977 1980 1961-70 1971-80 All developing countries 76,502 143,656 206,660 243,728 6.5 5.4 Industrialized countries 196,148 435,275 697,568 830,810 8.3 6.7 World 2 343,922 730,198 1,123,625 1,302.344 7.8 6.0 1 Estimates. 2 Includes capital-surplus oil exporters and countries with centrally planned economies. Source: World Bank.

of those primary commodities that are ex- the decline in food exports from the develop- ported primarily by the developing coun- ing countries. tries. 14 Thus, the average year-to-year fluctua- tion in the prices of 33 nonoil commodities covered in the World Bank Index of Primary World Merchandise Exports, by Category, in 1960, 1970, 1979' Commodity Prices, which was 4.7% in the intages.) period, 1951-60, and 4.8% in the period, 1961- (Percentages.) 70, increased to 12.4% during the period, 1960 1970 19792 1971-80. Fluctuations were sharper in the Fuels 10.6 9.2 21.7 1970s for all groups of commodities, although Nonfuel primary much more so for food products (15.8%) commodities 37.2 27.7 19.5 than for agricultural raw materials (10.9%). Manufactures 52.2 63.1 58.8 In 1971 and 1972, the price index of 33 Total 100.0 100.0 100.0 nonoil primary commodities was at its lowest I Based on values expressed in current US dollars. 55 World Bank estimates. level in real terms 15 since the early 1950s. ~~~~~~~~2Source: UN and World Bank. Prices did rise sharply in 1973 and 1974, led by gains in wheat, sugar, oilseeds and oils, cotton, copper, tin, and zinc, but they slumped in Imports of wheat and coarse grain by the 1975 as a consequence of the deep economic developing countries nearly doubled during recession in the industrialized countries. Re- the 1970s, in spite of the improvement in food covery in 1976 and 1977 largely reflected the production in India, a major importer in the sharp increase of over 200% in real terms in past. The food-deficit developing countries coffee prices after the 1975 frost in Brazil. have become increasingly dependent on im- Commodity prices were once again at record ports from a few developed countries, and a lows in real terms in 1978 and 1979. few Southeast Asian countries, which had tra- The divergent trends in the price and vol- ditionally been rice exporters, experienced ume of merchandise exports 16 have signifi- large cereals deficits during the decade and cantly changed the structure of world trade. became major food importers. Fuels, which represented II % of the value of world exports in 1960, accounted for 22% of exports in 1979, thereby surpassing nonfuel Current Account Deficit Adjustments primary commodities in importance, the latter The terms of trade loss from the sharp price falling from 37% to 20% during the same Theases f crudeil and other energy prod- period. Moreover, the developing countries' ucts and from the rise in the prices of manu- share of exports of nonfuel primary commod- factured products imported from the indus- ities declined. In 1960, the developing coun- trialized countries, together with a marked tries accounted for 40% and the industrialized slowdown in their own export growth, pushed countries for 50% of such trade; by 1979, how- the oil-importing developing countries into ever, their shares were 31% and 61%, respectively. Countries with centrally planned economies and the capital-surplus, oil-exporting '~Coffee, cocoa, tea, vegetable oilseeds/os, rubber, copper, countries accounted for the remainder. Fac- and tin, to name but a few. tors contributing to the developing countries' '5 Deflated by the IPI. relative slippage in primary products included "Merchandise exports are defined as exports of food and nonfood agricultural commodities, metals and minerals, the rise in mineral exports from Australia and fuels, and manufactured commodities. Increase in Borrowing 19 massive current account deficits.17 Their col- but in different ways, in the industrialized lective deficit rose from $8,300 million in countries.) 1970 to $39,600 million in 1975, when it represented a peak of 5.1 % of their GNP. Because Increase in Borrowing such large deficits could not be sustained in the long-term, developing nations were forced to The changes in the international economic adopt adjustment measures. The oil-importing environment during the 1970s increased the developing nations that coped best during this need of the developing countries for external period of adjustment were: finance. At the same time, the sudden and -Those that reacted to the decline in their dramatic rise in the earnings of oil exporters import capacity by a temporary slowdown in brought about a tremendous growth in interna- growth, accompanied by a drive to expand ex- tional liquidity. Although they imported great ports. Import capacity (and hence output quantities of goods and services, a number of growth) was restored quickly. Most of these major oil exporters were unable to spend all of countries had grown rapidly and diversified their petroleum earnings immediately. Thus, their exports during the previous decade; they deposited large portions of their surpluses Singapore is a good example. in banks abroad. Substantial amounts of these --Those that, while maintaining import funds eventually found their way into the al- growth by foreign borrowing, used the bor- ready rapidly growing Eurocurrency market s rowed funds mainly to sustain high levels of in which the developing countries-particularly investment; they included Brazil and Korea. the middle-income countries-were able to -Those that benefited from good harvests borrow. Such borrowing had the advantage of resulting from improved agricultural policies not being tied to specific goods and of being and favorable weather (as in India), or rising quickly disbursable. The proceeds were used remittances from migrant workers (as in the to cover the increased cost of imports, supple- Yemen Arab Republic). ment domestic resources for investment, build up international reserves, prepay existing credits and borrow on better terms, and consolidate Current Account Balances of Oil-importing short-term debt. The major part of the large Developing Countries, 1965.79' reserve build-up and most prepayments took place during the last few years of the decade. Current account balances (at current prices) During the decade of the 1970s, significant Low-incoome Middle-income shifts occurred in the sources of financing, in countries countries Total parallel with the rapid expansion of the inter- 1965 -2.7 -2.4 -5.2 national capital markets. While borrowing from 1970 - 1.2 -7.1 -8.3 both official and private sources continued 1974 -4.8 -27.2 -32.0 to grow, borrowing from the latter source 1975 -5.4 -34.2 -39.6 grew much more rapidly. During this period, 1976 -1.9 -27.0 -28.9 private banks greatly expanded their commit- 1977 -2.2 -22.7 -24.9 ments to the developing countries; they ex- 1978 -5.7 -21.4 -27.1 tended loans to a much larger group of coun- 1979 - 7.9 -35.2 -43.1 tries while, at the same time, concentrating on 'Excluding official transfers. a few proven borrowers. There was a relative 3Preliminary, shift away from both private direct foreign investment (not included in the debt figures) and In addition, a number of countries benefited private suppliers' credits toward borrowing from the rapid rise in imports by the oil ex- from private financial markets (banks and porters and from an improvement in the prices bonds). of certain of their exports. Bv 1978, the aggre- Most middle-income countries (and one gate deficit of oil-importing developing coun- low-income country, Indonesia) resorted to tries had fallen to $27,100 million, or 2.3% of borrowing from private sources. But most low- their GNP; however, it rose once again to an income countries had to rely on Official De- estimated $43,100 million in 1979. velopment Assistance (ODA)-concessional Despite the adjustment measures taken, loans and grants. Net disbursements of ODA however, many developing countries suffered a loss of development momentum and, in a "The current account balance as it is used here is the bal- substantial number of them, developmental ance on goods, services, and private transfers. investments had to be curtailed. (The impact ""Eurocurrency"refers to deposits in banks in currencies that are not native to the country in which the bank is of adjustment, as noted earlier, was also felt, located. 20 1971-1980-A Global Perspective from the member countries of the Develop- which-Indonesia and India-are middle- ment Assistance Committee (DAC) to the income countries. In fact, the middle-income developing countries rose in real terms by countries as a group accounted for 83% of almost 3% a year in the 1970s. It remained the total debt of developing countries at the almost constant, however, as a proportion of end of 1978. The portion of debt from private the aggregate GNP of the DAC members,19 sources was even more highly concentrated; at 0.35% in 1971, 0.33% in 1976, 0.35% in 90% was owed by middle-income countries. 1978, and an estimated 0.34% in 1979-or The middle-income countries stand in sharp some $22,300 million.2 0 Performance relative contrast with the low-income countries, whose to GNP had been somewhat better in the borrowing grew much more slowly because of 1960s. During the 1970s, four DAC members their limited creditworthiness and the limited met the target of providing net ODA equiva- availability of official lending. As the decade lent to 0.7% of their GNP: Denmark, the ends, it appears that some of the large borrow- Netherlands, Norway, and Sweden. Net ODA ers have begun to slow down the growth of from members of the Organization of Petro- their borrowings and, at the same time, have leum-Exporting Countries (OPEC)," which begun to accumulate reserves at a slower rate. had grown rapidly in the early 1970s (net dis- (For more details, see Annex Tables 2-7, bursements rose from $1,700 million in 1973 pages 132-141 of this Annual Report). to $5,900 million in 1974 and to $8,200 million in 1975, or 4.0% of their GNP), dropped Debt and Debt-service Indicators of Public Debt back to an estimated $4,300 million by 1978 and an estimated $4,600 million in 1979, or 1970 1978 about 1.2% of their GNP, still quite high rela- Disbursed debt as a % of GNP tive to the DAC members. Total net develop- Low-income countries 18.1 21.7 ment assistance from the OPEC countries of Middle-income countries 10.8 17.6 (exclding Debt service as a % of GNP the Middle East and North Africa (excluding Low-income countries 1.2 1.7 Algeria and Iran) averaged 5.7% of their Middle-income countries 1.5 2.9 GNP during the period, 1974-78. The USSR Debt service as a % of and six East European countries accounted for exportsLow-income of goods countries and services 12.3 11.7 an estimated $700 million in 1979, or 0.04% Middle-income countries 9.3 13.8 of their collective GNP. Source: World Bank.

Concentration and Growth of Debt The increasing importance of private sources of financing has been accompanied by much Not surprisingly, the outstanding medium- harder overall average terms. Maturities for term and long-term disbursed debt from public the various types of credit did not change much and prlvate sources (mi foreign currency) of during the decade, although during its closing the developing countries 2 2 rose fivefold (in years, there was some lengthening of private nominal terms) between the beginning of bank maturities. The ever-increasing weight of 1971 and the end of 1978, reaching $318,400 private flows in the total, however, did shorten million. Debt at the end of 1979 was an esti- the overall average maturitv. Nominal interest mated $376,000 million. Debt service, too, rates rose for most types of financing. Infla- rose rapidly-going from $9,400 million in tion during most of the decade reduced the 1971 to $52,300 million in 1978 and to an effective debt-service burden for loans made estimated $69,000 million in 1979. However, at fixed interest rates. A large proportion of compared with the growth in their nominal private loans was made at variable interest GNP and exports, the growth of developing country indebtedness-taking the countries as a single group-appears to have been more "eAustralia, Austria, Belgium, Canada, Denmark, Finland, France, the Federal Republic of Germany, Italy, Japan, moderate. the Netherlands, New Zealand, Norway, Sweden, Switzer- Both debt and debt service are concentrated land, the United Kingdom, the United States, and the Cmmission of the European Communities. in a few developing countries, primarily the °°Grants and grant-like flows, 40% of which was technical larger and morelarger dynamic among them-those ~~~~~~~~~~~~andassistance,1979 frommade the up DAC almost countries. half.of total net ODA for 1978 with relatively strong export sectors or those 2IAlgeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, that have large international reserves. Several Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emir- oil-exporting countries are among the largest 21For debt coverage, refer to the General Notes to Annex debtors. Of the $318,400 million in disbursed AnnexTables. coverage,The text exceptcoverage that of itdebtors includes is Souththe same Africa. as theIn debt outstanding at the end of 1978, 55% was addition, unlike the Annex Tables, the text covers both public (public and publicly guaranteed) debt and private, owed by only 10 countries, all but two of nonguaranteed debt, but it excludes undisbursed debt. An International Dialogue 21

Public and Private Debt of the Developing Countries (US$ millions.) End 1970 End 1974 End 1977 End 1978 End 1979' Disbursed debt outstanding, by region More advanced Mediterranean countries 9,194 24,086 42,598 52,270 67,000 Africa, South of the Sahara 2 8,110 17,821 29,952 34,482 43,000 North Africa and Middle East 4,405 9,485 25,421 34,743 41,000 East Asia and Pacific 8,928 19,468 37,740 46,242 53,000 South Asia 11,963 18,921 26,198 28,989 32,000 Latin America and the Caribbean 21,540 52,158 95,647 121,667 140.000 Total 64,139 141,938 257,556 318,391 376,000 Disburseddebt outstanding Official sources 35,112 63,743 102,353 121,144 138,000 Private sources 29,027 78,195 155,203 197,247 238,000 Guaranteed (18,056) (45,717) (103,577) (136,544) (168,000) Nonguaranteed' (10,971) (32,478) (51,626) (60,703) (70,000) Total 64,139 141,938 257,556 318,391 376,000

Debt service 1970 1974 1977 1978 1979I Official sources 2,533 4,661 7,489 9,14t 12,000 Private sources 5,737 16,246 30,371 43,109 57,000 Guaranteed (3,527) (8,494) (18,130) (28,929) (39,000) Nonguaranteed' (2,210) (7,752) (12,241) (14,180) (18,000) Total 8,270 20,906 37,860 52,251 69,000 Net disbursements Official sources 3,853 8,245 13,127 14,297 16,000 Private sources 4,813 17,510 28,688 37,724 35,000 Guaranteed (2,748) (9,882) (22,030) (28,643) (28,000) Nonguaranteed' (2,065) (7,628) (6,658) (9,081) (7,000) Total 8,666 25,754 41,815 52,021 51,000 Note: Details may not add to totals because of rounding. I Estimated. 2 Includes South Africa. I Includes some lending by official sources that is not guaranteed by a public body in the borrowing country. Source: World Bank. rates, however, so that changes in interest debt. Some $1,100 million has already been rates affected debt service on past loans, as "forgiven." Other measures included in this well. In general, the ratios of total debt ser- "retroactive terms adjustment" are the elimi- vice to exports, as well as the ratios of debt nation of interest payments, the rescheduling to GNP, tended to increase during the decade. of debt service, local-cost assistance, untied However, the number of multilateral resched- compensatory commodity aid, and new grants ulings organized each year under the auspices to reimburse old debts. Some of this relief is of the Paris Club23 showed no real tendency reflected in the increased figures for grants. to increase. The low-income countries, with their limited An International Dialogue financial and skilled human resources, are particularly vulnerable to debt difficulties. After The events of the decade gave an impetus the conclusion of the 1979 meeting of the to the developing countries to call for changes United Nations Conference on Trade and in the structure of the international economic Development (UNCTAD), 13 DAC countries promised, and in most cases have already be- 2 3 gun, to provide "retroactive terms adjustment" The Paris Club is the name given to an informal organization which, since 1956, has arranged, when necessary, to the poorest countries. The amounts of such for the renegotiation of creditor-guaranteed suppliers' adjustment announced thus far total about credits. Since then, it has handled the majority lateral debt renegotiations. (More than a dozenof debtormulti- $5,000 million. Of this, about $3,500 million countries have been involved over the years.) Typically, is to go towardis to gotowarddrectlydirectly rduciDgreducing tethe total concessionalthe arrangements in nature. worked out are short term and non- 22 1971-1980-A Global Perspective environment. While similar suggestions were agreements. The second account, of $350 mil- brought forward during the 1960s (at the lion, will be used to finance research and devel- meetings of the United Nations Conference on opment in commodity-producing countries and Trade and Development (UNCTAD) in 1964 to help them expand exports. The agreement is and 1968), deteriorating economic conditions now to go to governments for ratification.2 5 and the success of OPEC deepened the resolve Important progress was also made in the of the developing countries to seek change conclusion of the Tokyo Round of multilateral during the 1970s. As a result, the UN General trade negotiations, whereby tariff barriers Assembly, in 1974, adopted the "Declaration against developing country exports to devel- for the Establishment of a New International oped countries were reduced. But, as noted Economic Order" (NIEO), and the resulting in last year's Annual Report, "the most en- general and specific negotiating sessions aris- couraging results of the Tokyo Round are to ing from this declaration became parts of be found in the area of nontariff barriers to what was (and is) known as the North/South trade. This achievement was accomplished dialogue. by a strengthening of GATT codes, including The "new order" called for was complex in changes with respect to codes covering cus- its composition; among the basic elements toms valuation, government procurement prac- are included questions of commodity agree- tices, export subsidies, countervailing duties, ments, trade, flows of concessionary assistance, and product standards." generalized debt relief, reform of the inter- In other areas, progress has been at best national monetary system, more rapid indus- limited in fields such as industrialization, trialization of the developing world, transfers international monetary reform, and the new of technology, provision of assured and afford- Law of the Sea and the developing countries able supplies of foodgrains, and the establish- have voiced their frustration and disappoint- ment of a new Law of the Sea providing for ment over the lack of concrete results. The development resources on the basis of a tax on lack of progress in Paris (December 1975- undersea mineral exploration. June 1977) at the Conference on International From the beginning, it was clear that agree- Economic Cooperation seemed to set the mood ment on issues dividing the developed and at subsequent meetings, such as those held in developing countries would not come easily. Manila in 1979 (UNCTAD V) and in New Nevertheless, some progress has been made in Delhi in 1980 on industrialization. certain areas, and, in other areas, differences In recognition of the slow progress on these have been narrowed and some willingness to issues, Robert S. McNamara, President of the compromise has emerged. World Bank, in January 1977, urged the Specifically, agreement has been reached on analysis of the global economic issues by an establishing a form of generalized debt relief unofficial commission that would also recom- for some of the poorest countries (the "retro- mend actions to be taken by both the North active terms adjustment" referred to earlier), and the South. Subsequently, an Independent on the content of nonbinding codes of conduct Commission on International Development for the transfer of technology and the regula- Issues was set up under the Chairmanship of tion of transnational corporations, and on a Willy Brandt. The Commission was composed common fund to stabilize commodity prices.2 4 of 18 members from five continents. Although The idea of a common fund to stabilize the they represented quite different points on the prices of commodity exports of developing political spectrum, they were able to agree countries had long been the object of serious unanimously on their findings, subsequently controversy in respect both to its very concept released in March 1980 in a report entitled, and to the scale of funds called for by such a North-South-A Program for Survival. scheme. In 1979, however, three years after This report stressed the growing mutuality the general proposal for such a fund was first of interest that exists between North and South adopted (in UNCTAD IV), and after pro- in removing the causes of mass poverty, in tracted negotiations, the basic elements of a trade and commodity agreements, in oil and fund, requiring about $750 million (as compared with $6,000 million sought initially) were agreed upon on June 27, 1980. Under the fund's Articles of Agreement, the $750 million "Parallelmunity introducedto this, in an 1975, export the earnings European stabilization Economic schemeCom- undertaking will be separated into two ac- (STABEX) in the Lome Convention, linking the Com- counts. The first account, containing $400 mil- mnThe$750 mifion fund CiH bean, and Pacific nations. lion, will be used to finance price stabiliza- in government contributions, $100 million in callable capital and $280 million in voluntary contributions for the tion through separate international commodity sec'ond account. The 1970s and the World Bank 23 mineral exploration, and in facilitating the emphasis on highway maintenance and con- recycling of surplus funds. As an immediate struction of rural roads and with the beginning program, the report called for: (a) the large- of lending for oil and gas exploration and scale transfer of resources on both concessional production. and market terms to the developing countries: The share of Bank and IDA lending for (b) an international energy strategy; (c) a agriculture and rural development, which had global food program; and (d) a start on some nearly tripled in the 1960s, continued to ex- major reforms in the international economic pand rapidly in the 1970s. Helping to solve the system. The report also called for a limited food problem and "reaching out" to the small summit of world leaders from the various farmers and the rural poor were the main groups that comprise the North and the South objectives of lending in this sector. At the same to adopt an immediate program and to set the time, recognizing the importance of meeting framework for longer-term measures. Plans the basic needs of the urban poor, the Bank for that summit meeting are already under began lending for urban development and for discussion. the provision of water supply and sewerage The Brandt Commission report is also of facilities to low-income urban areas. Further- relevance to the work of the UN Preparatory more, in view of the world's evolving energy Committee that is mapping out a new inter- needs, the Bank decided, after careful delib- national development strategy for the 1980s. eration, to assist the development of petroleum The strategy will be submitted to the Special production, including, in some cases, the pro- Session of the UN General Assembly, sched- vision of finance in support of exploration uled for August 1980. That session will launch activities. global negotiations to arrive at a consensus on Simultaneously, activities in support of in- several of the major international objectives stitution building were strengthened. Notable identified by the strategy. Negotiations are ex- success was achieved in building up a frame- pected to focus on food, energy, balance of work for rural credit and extension services. payments, trade, finance, and raw materials. The Bank continued to help meet the foreign exchange needs of already established national The 1970s and the World Bank development finance companies and helped to create or strengthen new institutions devoted Although the decade, and particularly its to financing the requirements of artisanal, closing months, may have witnessed a deterio- small, and medium-sized businesses. Technical ration in the international environment, the assistance was expanded and the number of ]970s will also be remembered as a period in Economic Development Institute (EDI) pro- which a better perception of human, as well as grams increased to create a larger reservoir economic, problems was developed. This is of expertise for project preparation in the de- evidenced by the increasing concern of the veloping countries themselves. world community with the condition of the During the decade of the 1970s, the Bank poorest groups in the developing countries and increased the flexibility of its lending opera- the consequential adoption of development tions. In recognition of the growing quality strategies that include programs to benefit and competitive strength of suppliers and con- them directly. tractors in the borrowing countries, local-cost Thus, during the 1970s, the World Bank financing has now risen to 20% of total lend- adjusted its lending operations and its role in ing. Program lending, which in the 1960s had providing technical assistance to meet the been a small part of Bank operations, ex- evolving needs of its developing member coun- panded in fiscal years 1975 and 1976 in the tries. Bank funds and technical assistance, wake of the worldwide recession, and, in fiscal in general, were increasingly channeled to the 1980, it was decided to support needed struc- poorer segments of society in the borrowing tural adjustment measures initiated by the de- countries through changes in sectoral priori- veloping countries (see page 67 for more on ties. At the end of the 1960s, nearly 60% of this form of lending). Bank lending went to the development of Because the Bank, although by far the larg- infrastructure; by the end of the 1970s, such est multilateral development finance institu- lending had fallen to one-third of the total, with tion, provides barely I % of total investment nearly half of Bank lending directed to sectors in the developing countries, its role can, at such as agriculture and rural development, best, be viewed as that of a catalyst. As its education, population and nutrition, urbaniza- share of total investment is not likely to grow, tion, and small-scale industries. Even infrastruc- improving the perception of divergent eco- tural lending has changed, with, for example, nomic issues facing different regions of the 24 1971-1980-A Global Perspective world and developing various policy mixes that ments by governments to increase the lending can lead to remedial action are perhaps the ability of both the Bank and IDA has lagged most valuable routes the Bank can follow in behind the needs of the developing countries; assisting the development process. IDA funds, in particular, were in short supply Although there have been both quantitative during the fourth and fifth replenishment and qualitative changes in Bank policy and periods. But the legacy of the 1970s-that rich Bank programs, these have not yet gone far and poor nations alike form a world commu- enough to affect significantly the well-being of nity and that this community will be hard the absolute poor. Some aspects of the depressed to survive future decades filled with velopment process-for example, the develop- shocks and turbulences without consequent ment of human resources and the meeting of social upheaval-could form the basis for steps the basic needs of the poor-have seen only to be taken in the 1980s. limited success. The fulfillment of commit- 25 Chapter Three 1971-1980-Regional Perspectives Eastern Africa

Trendin Lending,1971-80 (US$millions. Fiscal years.) (00)Number ofOperations

Per capita Borrowers Population GNP 19782 - Fiscal 1978-80 (000) (US$) = Botswana 747 620 Burundi 4,463 140 Comoros 385 180 - Ethiopia 30,982 120 Kenya 14,720 330 l50-0 Lesotho 1,279 280 Madagascar 8,289 250 - Malawi 5,670 180 Mauritius 918 830 - Rwanda 4,508 180 1.000 815.0 Somalia 3,743 130 - 645.8 (38) - Sudan 17,376 320 = 5722 560.3 (35) = Swaziland 525 590 440-6 (39)(35) Tanzania 16,854 230 25)(31) Uganda 12,406 280 - _25 Zaire 26,770 210 - Zambia 5,291 480 NoTE: The 1978 estimates of GNP per capita presented 1971-75 1976 1977 1978 1979 1980 above are from the "World Development Indicators" in Annual the World DevelopmentReport 1980. Average 'Estimates for mid-1978. 2 World Bank Atlas methodology, 1976-7& base period.

The decade was full of severe strains for the tion of local initiative and adequate support 19 member countries of the Eastern Africa from abroad. Region. While progress was made on some Most countries in the Eastern Africa Region fronts, it came only after formidable obstacles are at the bottom of the development pyramid. had been overcome. In the past several years, They are characterized by having a limited moreover, Eastern African countries have been stock of skilled human capital or physical in- affected by the major deterioration in the inter- frastructure, and most of their citizens are national environment that has exposed, more poor. Exports are dominated by one or two clearly than before, the fragility of their institu- primary commodities, especially coffee, tea, tional framework and the need to strengthen and copper; because world prices for them further their economic policies and manage- fluctuate widely, substantial disturbances, exog- ment. Several countries, however, after having enous in origin, occur in income, savings, and taken stock of their situation, have initiated a public revenues. Natural calamities take their process of policy reform and structural change toll, as well, and increase economic instability. in order to adapt better to the existing eco- As the ability of Eastern African economies to nomic climate. To regain their development adjust to disturbances is weak, development momentum, it will be necessary to sustain these efforts are interrupted frequently by financial processes during the 1980s through a combina- difficulties. The pace of progress during the 26 1971-1980-Regional Perspectives

1970s was seldom smooth, and it varied among taken up clerical and other intermediate posi- countries. tions in government or in the modern, private sector. A few professionals have also emerged Social Services from the educational and training system, have replaced expatriates, and have risen quickly to A high value was attached to the provision senior-level positions. of social services after Eastern African coun- The World Bank has supported education tries gained national independence; since inde- programs in most countries of the Region; 8% pendence, impressive quantitative expansion of total lending during the period, fiscal 1971- has taken place, particularly in the field of edu- 80, was in this sector. In addition, the Bank's cation. In eight countries of the Region, the Regional Mission in Eastern Africa (with head- primary school enrollment has already ex- quarters in Nairobi) has helped governments ceeded 90% 7 The expansion of secondary to identify and prepare for financing rural education has been equally dramatic, although development projects, thereby supplementing the initial base was much more narrow than local skills in this critical endeavor. The Bank at the primary level. The secondary enroll- has also organized an Agricultural Develop- ment ratio exceeds 20% in four countries ment Service through which expatriates are and I0O% in six others. A start has also been mobilized to serve in key positions at the proj- made in higher education, but the enrollment ect level. The Bank's Economic Development ratio exceeds 2% only in Mauritius and Swazi- Institute trained 813 Eastern African officials land, compared with an average of 5% for all in different development fields during the low-income countries and 10% for those in decade. the middle-income range. The educational Notwithstanding the progress made, critical drive has yielded dividends in several forms. problems related to the formation of human Literacy rates have risen sharply in Somalia, Tanzania, and Swaziland and at a somewhat slower pace in Kenya. Mauritius, Madagascar, and Burundi. Secondary school graduates have andcBurundi. subantialy sin number and have 'Comoros, Kenya, Lesotbo, Madagascar, Mauritius, Swazi- increased suhstantially innme n ae land, Tanzania, and Zambia.

Lending to Borrowers in Eastern Africa, by Sectors (US$ millions. Fiscal years.) Annual Average 1971-75 1976 1977 1978 1979 1980 Agriculture and rural development $ 95.5 $ 93.4 $235.8 $165.7 $198.6 $242.5 Development finance companies 13.3 69.5 46.5 25.9 19.2 88.5 Education 29.6 64.1 37.3 57.7 26.5 35.1 Energy Oil. gas, and coal 4.0 - - - - 48.5 Power 57.1 63.0 55.0 48.0 9.0 115.0 Industry 30.9 - 23.0 45.0 60.0 - Nonproject 18.0 - 45.0 - - 192.5 Population, health, and nutrition 2.4 - - - - Small-scale enterprises 0.8 - - 10.0 - - Technical assistance - 11.5 - 3.0 7.5 4.5 Telecommunications 20.4 - - - 20.0 - Tourism - - 17.0 - 14.0 - Transportation 79.5 82.6 90.6 99.0 265.0 42.5 Urbanization 9.5 - - 70.0 - 21.0 Water supply and sewerage 5.1 56.5 22.0 36.0 26.0 24.9 Total $366.2 $440.6 $572.2 $560.3 $645.8 $815.0 Of which: Bank $176.8 $216.0 $311.7 $162.4 $266.0 $150.5 IDA $189.4 $224.6 $260.5 $397.9 $379.8 $664.5 Details may not add to totals because of rounding. Eastern Africa 27

Numerous village water supply components have been included within Bank-assisted and IDA-assisted agriculture and rural development projects. This photo shows water being pumped in the Lilongwe development scheme in Malawi.

skills remain unresolved. Outlays for educa- much remains to be done, for safe water is tion have risen far more rapidly than total today available to only 30% to 50% of the governmental expenditures and now absorb population in most countries and to less than 20% or more of the total in at least eight 20% in four countries. countries. It is clear that larger programs in Falling death rates, combined with con- this sector will encounter formidable financial tinued high fertility, have inexorably led to a constraints in the future. Despite increased substantial acceleration in the rate of popula- expenditures, middle-level and high-level skills tion growth in the Region, and it is likely that are still in shor-t supply; in addition, the drive the peak in the pace of demographic expan- to expand rapidly the coverage of the school sion has not yet been reached in most coun- system has led, in some countries, to a worri- tries. Six countries now have population growth some deterioration of student achievement test rates exceeding 3 % a year. scores. In 1960, life expectancy was less than 40 PhysicalInfirastructure years in 10 countries of the Region. Major Substantial investment was made in ex- improvements in the health sector have taken panding the physical infrastructure of the place, and by the end of the decade, life ex- Region during the decade of the 1970s. pectancy had increased by six to 10 years in -Installed capacity for the generation of most countries. Public health measures have electric power nearly doubled, from 2,800 mW reduced the frequency and impact of epi- in 1969 to 5,200 mW in 1979; a large part of demics, and infant mortality has been reduced the expansion was in Zaire and Zambia for the by a third. There have also been some improve- purpose of increasing their capacity to process mnentsin the provision of water; nevertheless, copper ore. 28 1971-1980-Regional Perspectives

-The number of deepwater berths in- The disappointing performance of agricul- creased from 63 to 90, mainly in Somalia, ture is at the heart of the development prob- Tanzania, and Kenya. lem in Eastern Africa. To make agriculture -The Region's railroad network expanded a dynamic sector requires several ingredients by 18%, and the road system by 12%. Trunk -proven technical packages that have been and paved roads, as a proportion of the total adapted to local conditions, a timely availabil- road network, rose substantially in most coun- ity of key inputs, effective extension services, tries, and much of the investment in roads was a reasonable relation between prices paid for aimed at improving standards rather than ex- agricultural inputs and received for crops by panding mileage. farmers, and a stock of consumer goods whose The World Bank was active in its assistance availability acts to spur increased productivity to these sectors: lending for transportation -the combination of which, in many places, it constituted 20% of total operations in Eastern has not been possible to secure and sustain. Africa during the period, fiscal 1971-80, and In addition: another 12% in lending was directed to the -Droughts, floods, and pests took their toll power sector. on production; their incidence was particu- Although considerable progress was made larly marked in the period, 1973-75. during the 1970s, the Region's needs remain -The lack of project managers and techni- large. Institutional development, for instance, cians reduced the effectiveness of delivery occurred in the fields of power and transpor- systems that had to operate over long distances tation, but the absorptive capacity of these connected by weak transportation networks. sectors for further investments is still circum- -Most governments in the Region tended scribed by economy-wide shortages of skilled to follow pricing policies that were aimed at personnel. Furthermore, because full attention keeping food prices low in urban centers; they to the regular maintenance of physical infra- have not always been fully convinced that at- structure has not yet been paid in many in- tractive farmgate prices would elicit increased stances, the danger exists that the full payoff production, despite substantial evidence to that from costly investments may not be realized. effect. There is already evidence that protracted ne- The Bank devoted 29% of its lending com- glect of maintenance has led to a reduction in mitments within the Region during the decade the road network in some countries. The Bank to agriculture. During the early 1970s, Bank is continuing to urge governments to allocate assistance was concentrated on increasing the financial and technical resources for the reha- production of export crops and livestock. In bilitation of existing networks before initiating fiscal 1973, however, further investment for new investments. expanding production of cash crops such as coffee and tea, which face stagnant demand Agricultural Performance by consumers, was stopped. The emphasis of Bank support shifted to food production and During the late 1960s and early 1970s, the assistance to small farmers. Rural develop- growth rate of agricultural production ex- ment projects, such as Lilongwe, in Malawi, ceeded 3% a year in five countries. Here again, attempted to integrate a number of compo- however, the record was uneven, as, in five nents, including infrastructure, research, exten- other countries, agricultural output grew by sion, and social services, into a single operation. 1% or less during the same period. Even more More recently, the project concept has favored startling and worrisome is the fact that the pace the introduction in areas already endowed with of agricultural production slowed down al- minimum infrastructure of an existing techni- most everywhere during the middle and later cal package to many farmers at low cost. Rural part of the decade. This deceleration is re- development projects supported by the Bank flected both in food and cash crop production. during the decade are bringing some benefits Over the entire decade, production per capita to the rural poor, but their impact has been seems to have declined in 10 countries, result- less than was expected and many have run into ing in the need to increase food imports sub- delays in implementation. stantially. Eastern Africa witnessed a slowing Four factors may explain the shortfall in down in the rate of increase in food produc- productive results from these projects: the tion at a time when the pace of population "technical package" incorporated into some growth was quickening. Plans for raising food projects had not been properly tested; the output during the 1980s must, therefore, take package, in certain instances, was not seen by into account the nutritional needs of rapidly local farmers as being more profitable than growing numbers of people. the one in current use; extension services often Eastern Africa 29 were not sufficiently effective as to be able to but meet government targets regarding the "sell" the project to farmers; and, in other creation of jobs. Trade policy and exchange cases, socioeconomic constraints (relating, for rate regimes tended to bias incentives in favor instance, to the availability of labor, to the role of production for the home market and, given of women, and to family structure) reduced discouraging trends in farm income for much anticipated benefits. of the period, this market did not grow rapidly. From these early projects, however, the Despite these limiting factors, lessons were Bank and its borrowers learned valuable les- learned and experience was gained. In the sons. Because both knowledge and data-on Sudan, for instance, the government decided technical, economic, and social aspects, and in 1979 to define the role of the public sector on what would work under prevailing local more selectively than before; elsewhere, how- conditions-were lacking in many of these ever, it will be necessary to rationalize the projects, the Bank has learned that its pio- policy frame of parastatal entities and revamp neering efforts might often best be handled institutional relationships so that public enter- initially through pilot schemes (under another prises might achieve the objectives for which project, for instance) that can be closely mon- they were created. itored and, if successful, be followed by full- During the 1970s, the Bank helped finance scale projects. In turn, governments have 20 industrial projects directly and extended 31 learned to appreciate better the need to mini- lines of credit to financial intermediaries in mize interference with project agencies and to Eastern Africa that are active in the manufac- establish effective links between discreteproject turing sector. These intermediaries are rela- targets and larger institutional goals. tively young; nine are less than 10 years old. Lessons have also been learned from the Even so, a number have demonstrated a sub- better understanding of the fact that the in- stantial capacity to identify potential invest- tended beneficiaries of these projects are mem- ments and to select economically sound bers of traditional societies that must be, and projects. Commitments have already been are, cautious in initiating changes. The lesson, made to these intermediaries for a total amount of course, is that projects must be designed to of $217 million; of this sum, 24% is in food be even more sensitive to local conditions, and processing and other agro-based projects, 19% that an understanding of social structures and in textiles, and 11 % in metalworking. Re- local behavior patterns must be developed cently, the Bank has encouraged these inter- before the project preparation stage. And that mediaries to support the expansion of small even then, projects must remain flexible so enterprises, in addition to those of medium that signals received during implementation size. In seven cases, small-scale enterprise can be responded to, so that institutional ar- components have been earmarked in credit rangements can be altered and technical defi- lines to these financial intermediaries. ciencies remedied, and so that any unexpected social response can be adjusted to. Economic Instability

Industrial Development In line with trends that took place in the agriculture sector, the Eastern Africa Region's At the time of independence, industry was overall gross domestic product (GDP) ex- an underdeveloped sector in the Region. panded fairly rapidly during the late 1960s Despite vigorous attempts on the part of gov- and early i970s. Six countries (Botswana, ernments to promote its development, progress Kenya, Malawi, Swaziland, Tanzania, and made so far has been fairly limited. In both Zaire) recorded annual rates of growth of Tanzania and Zambia, the role of the state, 5.5% or more. At the opposite end on the spec- through the establishment of parastatal insti- trum, aggregate production in three countries tutions and in other ways, was expanded late in barely kept pace with population growth. The the 1960s-in the former, as a result of policy second half of the decade witnessed a wide- laid down in the Arusha Declaration (1967) spread slowing down in economic growth and in the latter, following the Mulumqushi throughout the Region, compared with the Reform of 1968. Similar changes took place earlier period. This decline was partly a reflec- during the early 1970s in Ethiopia, Mada- tion of deteriorating trends in farm output and gascar, Somalia, and Sudan. Parastatals were in the volume of exports. In at least seven plagued, in many cases, by conflicting instruc- countries, the volume of exports declined dur- tions: to earn profits, but adhere to price con- ing the period, 1973-77. trols that were frequently set at unrealistically Another factor contributing to the slow- low levels; to operate on a commercial basis, down was the incidence of problems of a non- 30 1971-1980-Regional Perspectives economic nature that occurred during this same substantial decline in the countries' export- period. Perhaps the most dramatic illustration based capacity to import took place. 2 External was that of Zambia, whose economy suffered capital and official aid added little, on a net from a series of disruptions in its routes to the basis, to the Region's overall capacity to im- sea. In 1970, 77% of its imports arrived via port, although there were some countries Rhodesia (now Zimbabwe). After the border where this generalization does not apply. was closed in 1973, Zambia's most important The total volume of imports has tended to route to the sea, accounting for 49% of its decline in several countries over the last few total imports, passed through Angola. In years, and 1979 was no exception. The for- August 1975, however, the Angola route was eign exchange constraint on these countries severed, and by 1977, Zambia was forced to was reflected in a stagnation or, in several rely on the corridor through Tanzania for 85% cases, a fall in the volume of imports and led of its imports. All landlocked economies in to a retrenchment in investment and to low Eastern Africa suffered disruptions in trans- levels of capacity utilization. Crop production port services from related border problems in the Region followed a mixed pattern in during the decade. Yet another factor was 1979; generally, production was about aver- the disruption of the East African Com- age, except in Mauritius and Kenya, which munity. Created in 1967 to facilitate economic were adversely affected by weather conditions. development in Kenya, Tanzania, and Uganda, Production was also disrupted in Uganda, the Community arrangements collapsed in Tanzania, and, to a certain extent, in Zambia, 1976, compelling erstwhile members to search by unsettled conditions. Tanzania, in particu- for substitute markets and leading to the clo- lar, suffered a substantial shortfall in food sure of the border between Tanzania and supplies in the last quarter of the year. Kenya. Economic instability has been a recurring Also contributing to the slowdown in the phenomenon in Eastern Africa, and the dec- growth of GDP was the sharp deterioration ade of the 1970s has placed the Region in a in the Region's terms of trade. Between 1966 specially vulnerable position. Major disturb- and 1974, the regional terms of trade index ances, until 1973, were caused by fluctuations (1977=100) remained rather stable around in the export prices of primary commodities, an average of 153. Between 1974 and 1975, while prices of imports followed a slow, up- however, it fell by 37% and has since re- ward trend. Since 1973, the pressure on the mained at a new plateau, averaging 95 for the balance of payments has been greatly accen- period. The immediate reaction of many coun- tuated by a sharp, upward trend in the import tries to the large deterioration in their external prices of capital goods and oil, while prices position was to draw down reserves and bor- of Eastern African exports continue to fluc- row abroad. As a result, net foreign assets fell tuate in response to short-term market condi- precipitously in 1975 and, in several coun- tions. Since these circumstances are, in part, tries, turned negative. Although most coun- irreversible, it will be necessary for Eastern tries had little access to the Eurodollar market, African countries to consider how best they those few that did, borrowed commercially, can adjust to them by initiating appropriate and in large quantities. The servicing of this structural changes in their economies. debt has since strained the borrowers' balance of payments, and, in several cases, arrears in payments accumulated for the first time. Fi- Support for Change nancial pressures were also reflected in grow- During the decade, Kenya, Sudan, Tan- ing budget deficits and rising rates of inflation; zania, Uganda, and Zambia were provided with average annual price increases, for instance, nonproject loans by the Bank to help them face exceeded 10% in most countries and, in a few this adverse economic climate. Three of the op- instances, were about 50%. erations-in Kenya, Sudan, and Uganda- The current economic situation remains dif- were approved in fiscal 1980. In preparing ficult for most countries in the Region, despite these loans, Bank staff carried out a number of a sharp increase, in 1979, of about 30% in the studies that were discussed with the govern- composite price index for Eastern African ex- ments concerned and helped them review ports. International copper prices rose by 45% policy options. Public investment programs in that year and those of sugar by 24%. Notwithstanding these favorable international prices, export earnings increased by only about 2 10% on the average. Since, at the same time, Petroleum prices rose on average by 55% and the cost of importing oil preempted 22% of total exports on the aver- the import price index rose by nearly 18%, a age, up from 10% in 1970. Eastern Africa 31 were reassessed in the light of available re- to deserve priority consideration. A great po- sources and the need to raise capacity utiliza- tential continues to be unexploited. The real tion, as well as to complete ongoing projects. challenge facing governments is to create an Sudan has already embarked on a program to environment conducive to the motivation of raise cotton production and exports. Kenya their peoples. to the stimulation of their initia- has decided to rationalize its industrial and tive, and to the mobilization of their energies. trade policies so as to improve efficiency and The institution of incentives should support raise the level of manufactured goods for ex- the structural changes needed for countries in port. These measures have been supported by Eastern Africa to regain their momentum of drawings from the International Monetary growth and to extend the benefits of this Fund (IMF) and, in the case of Sudan, by a growth to all their citizens. rescheduling of external debt by the Paris Club. In fiscal 1980, the Bank also convened Bank and IDA [ending, Fiscal 1980 meetings of consultative groups for Sudan, Uganda, and Zaire. These meetings were de- Total Bank and IDA lending in the Region signed partly to mobilize additional assistance in fiscal 1980 reached $815 million, about from donors; without such extra support in 42% above the average of the previous five suitable form, it would be difficult to finance years. A total of 38 loans and credits was ap- large transitional deficits in the balance of proved. New IDA commitments, at $665 payments. It is recognized that these domestic million, were 111% above the fiscal 1975-79 and multilateral steps are the beginnings of a average. Lending for agriculture and rural de- process that must be sustained for some con- velopment and for energy accounted for 30% siderable time. Other Eastern African econ- and 20%, respectively, of total lending in the omies will need to take similar steps to regain Region in dollar terms. their development momentum. Continuing, strong efforts toward coopera- This momentum could be generated by both tion and coordination by the Bank, other mul- a better utilization of existing capacities and tilateral and bilateral financing agencies, and the development of untapped resources. Agri- recipient countries resulted in funds com- cultural production per capita could be restored mitted by co-financers in the amount of $443 to earlier levels by adopting more intensive million during the year. That total was 14% methods and expanding the area under culti- below the level reached in fiscal 1979. Each vation. Production of minerals in existing fa- co-financed project attracted an average of cilities remains depressed, in many instances, $29 million in co-financing funds in fiscal and a number of countries in Eastern Africa 1980, as opposed to $27 million in fiscal 1979.3 have impressive natural resources in the form of unexploited minerals as well as hydroelectric potential. Fuller utilization of existing manufacturing capacities, as well as higher 'Co-financing data have been compiled from World Bank levels of processing for exports, would seem reports of profljectshatnghe ime ounts stice that apoae. 32 WesternAfrica

5 ;Percapiitat -Trend in Lending, 1971-80 Borrowers Paopulation GNP1978 ((0 millions.Fiscal years.) Fiscal 1978-80 (000) (USS) (0 Numberof Operations Benin :3,323 230 Cameroon 8,058 460 Central African < 0Republic;0; 0 l i ;;$;f$ : 1,909 250 ; :Chad 4,314 140 2;000 Co go -People's0 2 0:; 0 0 00; 0 ; 0ftl0 t; -0i li0C0 00iw80-g : ::t5 : Republic of the 1,459 540 - Gambia,Tle 571 230 - Ghanai 1096 390 Guiiinea00 00j $4 05,-13300 210 -_t k f;G;uine-B5issau 553 290 - Ivr CoXast;00;0 t00t- -40ii ; 07,8360 00S4080 0t00 _00;00f0t0-0; 000;; 07;

Mali- ~~~~~~~6,2910731.6-

Niger 501 22 _ 4501 509.3 (5 35 - Ni;geria 8 560)0 _ _ ( 3921 (35)(0,563 Senegal530 3027 (29) SierraLeone- - 3,292 2102 - (23) Togao,1 t0VpperMklaiggX;0;Vg:;;y:0E; 160JL-L:jg'-le;ii;DtY;004ifDS;A _ _ NXvei)are from the :"World Developmentuindicators"sn Annual th World Development,Average Rpr 90 -

-5 World Bank Atla mehooog,197-7 bas period. m

The 1970s began for the countries of the shown, to adjust to the new conditions through Western Africa Region as a period of con- appropriate measures of short-run demand solidation of post-independence progress, in management. But the task has been much com- building up more cohesive nation-states, in plicated for Western Africa by problems of a more effectively integrating national econo- structural nature, such as those related to the mies, and in taking steps to strengthen inter- overall low efficiency of institutions in the African links. Beginning in late 1973, however, public sector, the neglect of export-oriented attention to this effort was diverted by a series industry, and the continuing biases in the in- of external shocks-the subject of detailed centive systems against agriculture. It is, thus, discussion in Chapter Two-whose cumulative the combination of three sets of factors- effect was to affect adversely the Region's financially weakened economies, a more inimi- terms of trade. As they enter the 1980s, most cal international environment, and the growing countries in the Region find that they have not impact of structural problems-that consti- been able to adjust fully to the new interna- tutes the challenge of the 1980s. tional environment. It would have been diffi- In terms of overall and per capita growth cult enough for Western African governments, of gross national product (GNP) over the as experience in other parts of the world has decade (taking into account serious statistical Western Africa 33 deficiencies), the Region's countries can be Thus, on a regional basis, the external gap grouped in three categories. In a few countries relative to GNP was about 4.5% in 1970 (and affected by internal strife, warfare, or natural only 2.5% excluding Nigeria, which was a calamities (Chad, Equatorial Guinea, Mauri- deficit country at that time), whereas it will tania), indications are that large segments of have approached 10% at the end of the dec- the economy have seriously deteriorated. To ade (not including Nigeria, which now is a these countries should be added Ghana, which, net surplus country). To help finance such during most of the decade, suffered from high large deficits, external borrowing over the rates of inflation, shortages of imported goods, decade increased by a factor of 6.5, or by over underutilization of capacity, and various forms 20% a year on average, with a marked ac- of depletion of capital stock. celeration in the past few years. This rate is In contrast, aggregate growth has been satis- about 50% faster than the rate of growth of factory in Cameroon, Gabon, Ivory Coast, the countries' gross domestic product (GDP) Nigeria, Togo, and, in the more recent past, or exports (in nominal terms). Debt service Niger. In all cases, fast-expanding exports of has increased at an even faster pace, in fact, primary commodities (such as oil, coffee, by more than 25% a year, as a result of the cocoa, timber, phosphates, and uranium) have hardening of borrowing terms. More seriously, been the prime movers. Although a broader both total public debt outstanding and debt export base and more judicious use of an ex- service have increased more rapidly among panding capacity to import goods have resulted the petroleum-importing countries than ex- in fairly balanced growth in Cameroon and ports. While in the 1960s and early 1970s, vir- the Ivory Coast, serious structural imbalances tually no Western African country experi- have developed in the other economies in this enced any "debt problems," debt has now group. become a matter of concern in practically The remaining countries in the Region fall all countries, with the notable exception of into an intermediate category of those expe- Nigeria, and has become one of the policy riencing marginal or mediocre growth over areas most in need of careful management. the long run that is associated, in varying de- Despite much expanded borrowing, the reserve grees, with a cyclical pattern essentially deter- position of the Region has seriously deteri- mined by external factors, including poor orated-again with the exception of Nigeria, weather. whose position has vastly improved over the As a result of these divergent trends, the past two years. Before the first period of oil economies of the Region's countries now differ price increases, the oil-importing countries, more widely than they did 10 years ago, and both in the low-income and middle-income even more so than at the time of their inde- ranges, held a rather comfortable $430 million pendence. In Gabon, at the high end on the in net foreign assets; by the end of 1979, it is spectrum, GNP per capita is estimated at more estimated that short-term liabilities exceeded than $3,000 for 1978. Excluding Gabon, the assets, resulting in a level of net reserves of range of per capita incomes in 1978 was be- about minus $600 million. This condition re- tween $840 (Ivory Coast) and $120 (Mali), flects meager reserve holdings by central or a ratio of 7:1.4 banks, heavy short-term borrowing abroad Nevertheless, significant expansion of the from commercial banks, and an increasing Western African economies has taken place level of drawings on the facilities of the Inter- over the years, although to an insufficient de- national Monetary Fund (IMF). gree and unevenly distributed in its geograph- Finally, inflation, and with it various de- ical and social impact. But the conditions re- grees of distortions in the price system (most sulting from such growth, especially in the commonly in the form of overvalued exchange financial sphere, have not created a robust rates), emerged as a new phenomenon. In con- basis for further progress that would better trast with the pre-1974 period, when general protect the economies from external shocks, price increases were quite moderate, double- permit policy makers to distribute the fruits digit inflation prevailed almost everywhere in of growth more widely, allow sectoral diversification, and strengthen domestic institutions. Tables 1, 2, and 3 on page 34 illustrate the massive deterioration of the external 'It should be noted that, according to conventional mea- methods, this is greater than the relative differ- position of the economies of the Regionthe Region asas aasurement ence between, say, the United Kingdom and the Ivory complementary viewpoints: Coast (6:1). The difference is also significantly greater whole from three than it was between the extremes of 10 years ago (when current account deficits, external public debt, the ratio of GNP per capita in the Ivory Coast and and net foreigassetoftemonearysyteGhana, on the one hand, and Upper Volta, on the other, andl net foreign assets of the monetary systems. was 5:1). 34 1971-1980-Regional Perspectives

Table 1. Balance of Payments: Current Account (US$ millions.) Category or group 1970 1973 1975 1977 1979 1. Oil-surplus countries - 369.0 -56.8 123.8 - 975.4 1,647.7 2. Middle-income countries -255.6 - 350.9 - 1,081.2 - 1,179.7 -2,368.3 3. Low-income countries - 154.2 -410.8 - 736.5 -729.0 - 524.1 Subtotal 2-3 -409.8 -761.7 - 1,817.7 - 1,908.7 -2,892.4 Total 1-2-3 - 778.8 - 818.5 - 1,693.9 - 2,884.1 - 1,246.3

Table 2. External Public Debt Outstanding (US$ millions.) Category or group 1970 1973 1975 1977 1979 1. Oil-surplus countries 842.1 2,002.8 2,405.9 2,636.4 6,961.8 2. Middle-income countries 1,760.4 3,154.8 454.4 8,780.7 12,274.3 3. Low-income countries 1,195.5 1,953.4 2,868.4 3,948.7 5,379.3 Total 3,789.0 7,111.0 9,816.7 15,365.8 24,615.4 Debt service 213.8 471.9 771.6 937.3 2,165.5

Table 3. Net Foreign Assets of the Monetary Sector (US$ millions.) Category or group 1970 1973 1975 1977 1979 1. Oil-surplus countries 220.8 214.8 5,926.9 4,238.9 5,093.0 2. Middle-income countries 268.2 332.6 142.1 256.5 -230.1 3. Low-income countries -65.9 97.3 -27.6 - 152.5 - 357.0 Subtotal 2-3 202.3 429.9 114.5 104.0 -587.1 Total 1-2-3 424.1 1,044.7 6,041.4 4,343.8 4,506.9

the late 1970s. Higher import prices (not just around 35% on the average). This shrinking of petroleum), persistent and growing budget share conforms to a recent, worldwide trend deficits, excessive levels of investment in some (associated with the normal pattern of eco- cases, overly accommodating monetary poli- nomic development and the relative growth cies, and sluggish growth of food production of urban populations) that can be regarded as were the main factors at play, although it is a manifestation of economic progress only difficult to quantify the relative importance of under two sets of conditions: that the shift each on either the supply or the demand side. results from increased productivity of agricul- Most governments have, therefore, achieved tural labor and that the migrants from rural only limited success in trying to prevent the areas engage in productive urban activities. emergence of major imbalances. But while, in Though the experience in the Region varies the short term or medium term, they will have from country to country, it seems that only in to continue their efforts in that direction, they a few cases have these conditions been met, cannot afford to neglect more fundamental as evidenced by the sluggish growth in the problems in agriculture, public sector manage- volume of agricultural exports, rising prices ment, and the social sectors. of domestically produced food, increases in food imports, and the emergence of urban unemployment (a phenomenon of little impor- Slow Progress in Agriculture tance in the 1960s). Thus, urban growth- The share of agriculture in GDP continued to decline during the decade, so that by the decade's mid-point, it was less than 50% 6 in virtually all Western African countries (and 'tAstistical conventionally reasons, probably measured, results which in underestimation. for a number of sta- Western Africa 35 generally at rates two to three times greater In fact, natural conditions, though varying than the growth of the total population-has throughout Western Africa, do not explain the not entirely been accompanied by an expan- differing pace of progress in the agricultural sion of the productive base. sector, as illustrated by Ghana and Nigeria, As far as food is concerned, meager quan- on the one hand, and the Ivory Coast and titative evidence points to three main features: Cameroon, on the other. While, in the case of first, a slight decline in food production per the oil exporters, nonagricultural exports have head occurred over the years in most coun- made it possible to maintain or expand import tries and certainly for the Region as a whole, capacity consistent with the growth of output with the Ivory Coast the only clear exception and consumption, the other countries, with the and a few other countries (Cameroon and exception of the few good performers already Liberia, for instance) having improved mar- noted, have had to rely on increasing volumes ginally; second, continuing sharp yearly fluc- of capital inflows, often at high costs, to sus- tuations prevailed, especially in the Sudano- tain acceptable levels of activity. In all cases, Sahelian zone; third, as a result of sluggish poor agricultural performance remains the domestic output and changes in consumption main cause of persistent poverty-directly in patterns, urban centers increasingly relied on the rural areas and indirectly in the cities. imported food supplies. The reasons for this generally unsatisfactory The record of export crops is also mixed. state of affairs are complex. The most evident Here again, the Ivory Coast stands out as the factors are labor shortages and the aging of only country with a record of sustained in- rural populations caused by the migration of creases in volumes exported over the decade younger people; a growing scarcity of easily (and, for that matter, since 1960). Nonethe- cultivable land; the lack of applied research, less, countries distinctly less favorably en- except in the case of selected tree crops; the dowed with resources, such as Mali and Upper absence of a proven package of agricultural Volta, have also made progress in this area- technology for the Sudano-Sahelian belt; the though to what extent progress has been at rising cost of improved agriculture (inputs, the cost of slower growth of food crops is not extension services, management), especially entirely clear. for irrigation; misdirected government policies

Lendingto Borrowersin Western Africa, by Sectors (US$ millions.Fiscal years.) Annual Average 1971-75 1976 1977 1978 1979 1980 Agriculture and rural development $100.0 $ 92.2 $162.1 $195.4 $174.1 $238.0 Development finance companies 3.6 18.0 11.2 67.0 27.0 - Education 28.8 28.3 14.8 23.8 30.0 49.0 Energy Oil, gas, and coal - - - - 5.0 Power 18.1 1.8 57.0 18.2 1.1 103.3 Industry 0.1 - - - - 60.0 Nonproject 16.0 - - - - - Small-scale enterprises - 68.6 - 5.0 12.6 18.0 Technical assistance - - 12.4 6.3 2.2 5.5 Telecommunications 12.5 5.2 - - - - Tourism 1.9 4.0 13.6 - 14.2 - Transportation 69.2 232.0 77.0 136.4 168.1 214.0 Urbanization 1.6 - 44.0 8.2 12.0 17.8 Water supply and sewerage 5.8 - - 49.0 115.0 21.0 Total $257.7 $450.1 $392.1 $509.3 $556.3 $731.6 Of which: Bank $167.4 $291.8 $259.1 $303.4 $317.1 $439.2 IDA $ 90.3 $158.3 $133.0 $205.9 $239.2 $292.4 Detailsmay not add to totals because of rounding. 36 1971-1980-Regional Perspectives

Women milling rice, using the traditional mortar and pestle method, in Senegal's Casamance region. Bank and IDA lending for agriculture in the Western Africa Region totaled $1,362 million for the period, fiscal 1971-1980.

in production and marketing; and an incen- Regions. In the course of the 1970s, three tive system that is all too often biased against problem areas emerged: employment and agriculture, especially in the form of overval- wages, the structure of skills, and the para- ued exchange rates, low producer prices, and public sector. subsidized urban consumption. Thus, while The genuine need to increase staff, com- agriculture is invariably declared the first bined with the fast-growing number of gradu- priority in official statements, policies are only ates from the education system and the slow gradually adjusting to this end-again, with a growth of the nonagricultural sectors, has re- few exceptions that have already been noted, sulted in an enormous expansion in public sector employment. One result often is over- staffing. At the same time, because of the con- Public Administration and Management straints on public resources-and despite the fact that overall levels of taxation relative to Embryonic at the time of independence, GDP are generally kept high as compared with public administration in the Region's coun- other developing countries-average wages tries has been greatly strained by the growing have been kept low, especially at the higher complexity of economic management, espe- echelons. In addition, particularly in the poorer cially since the mid-1970s, despite a rapid countries, the ratio of supplies to personnel expansion in public employment. In every expenditures has been low and declining; as a country since the early 1960s, the shares of result, working conditions have deteriorated. public consumption and public investment The structure of skills often is inadequate. have increased more rapidly than GDP and, The remarkable improvement in the number generally, stand well above the average of and quality of higher-level staff is in contrast corresponding groups of countries in other with the lack of such improvement at the inter- Western Africa 37 mediate levels (accountants are a prime ex- serious efforts are being made in some coun- ample) and lower levels. tries to introduce a measure of rationality, A striking development of the 1970s in the establish economic objectives (e.g., contribute Region has been the growth of the parapublic to public savings), monitor performance, and sector beyond the traditional areas of public promote individual entrepreneurship. utilities and irrespective of socioeconomic svs- tems. Here also, situations differ considerably, Indicators of Social Progress not only from country to country, but also How the relative distribution of income in among enterprises. Difficulties have arisen Western Africa has evolved over the years is from two distinct, though not unrelated, sets not revealed by existing statistics. A few styl- of factors: first, a weakness in management, ized facts of probably fair general validity are: characterized principally by a lack of financial (a) a statistically minute group of persons at rigor, top-heavy leadership, lax recruitment the top of the scale has become wealthier in practices, and an insufficient number of trained both absolute and relative terms; (b) in coun- and experienced managers; second, a macro- tries that have experienced slow growth of economic environment inconducive to effi- agricultural output (i.e., in most countries), cient business management. Parastatal firms the real income of the rural population, or are often the secular instruments of govern- 60% to 90% of the people, has increased ments that pursue contradictory social and little or not at all; and (c) in urban areas, a economic objectives, such as promoting out- divergence has occurred between those regu- put while setting producer prices too low, or larly (more or less) employed, whose stand- supporting the consumption of the urban ards of living have improved to some degree classes through subsidies that neither the (more so, of course, in some cities, such as in budget nor the enterprises can sustain. Under Abidjan or Lagos, than in others), and those such conditions, the managers, of necessity, who earn a living from sporadic, low-paying have to find ways and means to "finance" tasks, and who constitute the "new poor" of operating deficits. the shantytowns. Those in the second group Most parapublic enterprises, in the end, are found especially around the capital cities have suffered from a lack of self-generated or of the coastal countries, or are among those external resources; others have also, in a sense, displaced as a result of the Sahelian drought suffered from an excess of liquidity. This has of 1972-75. It is debatable whether the poorest happened to a number of "marketing boards" people in urban centers are better or worse off or similar entities that have enjoyed substantial than the inhabitants of the poorer rural areas surpluses from trading activities (mainly ex- (the former, for instance, may be worse off in ports), but were not equipped to ensure the terms of nutrition but have better access to best possible use of such funds. While some of health facilities). It is not debatable, however, these weaknesses could have been avoided by that both groups are among the poorest in the the imposition of stricter controls by the cen- world. tral authorities-independent auditing is not a On the basis of somewhat better evidence regular feature-efficiency in the parapublic regarding physical indicators of social progress sector has suffered both from excessive day-to- at the national level and from direct observa- day interference by governments and excessive tion, two seemingly contradictory indicators, freedom in investment decisions. especially for health and education, show From the rather bleak picture that emerges progress on a wide front among and within at the end of the decade, it should not be in- countries. At the same time, it would be hard ferred that parapublic enterprises have no to deny that demands for "social progress" constructive role to play. Indeed, given the have also become more widespread and more environment, quite a few, and generally at vocal. least one or two in each country, have per- Life expectancy at birth increased (in the formed well in all respects, particularly those period, 1960-77, from 37 to 42 years); crude that are public utilities or financial institu- death rates declined by about 20% in most tions. But, on the whole, there is little doubt countries; school attendance expanded every- that the expansion of the parapublic sector in where in absolute numbers, and, in five all directions, either because the private sector countries, it is now in excess of 80% at the was not seen as playing an adequate role, or by primary level. virtue of ideological choice, has not proved However, contradictions and difficulties are to be unqualifiedly successful. Most govern- associated with these otherwise undeniable ments have become acutely aware of the prob- achievements. First, the figures are averages lemrs associated with parapublic entities, and that conceal great differences among social 38 1971-1980-Regional Perspectives groups and regions. Second, practically all tion, before committing resources to large, social indicators in Western Africa remain be- indivisible schemes. It also means directing low the average for other regions or groups relatively more resources towards economic of countries at similar levels of income. In par- and social infrastructure in rural areas. For the ticular, life expectancy among Western Afri- middle-income countries, accelerating the pace can low-income and middle-income countries of industrialization is now a major challenge. is lower than the world average by about five This, first of all, requires a healthy growth in years; rates of infant mortality and adult illit- agriculture. Furthermore, in this endeavor, eracy are consistently among the highest. governments may wish to consider that, with Third, the unit cost (e.g., per primary school appropriate adaptation, economic policies re- graduate) of social services-especially edu- sulting in successful agricultural growth will cation-is among the highest in the world; also achieve the desired results in industry. correspondingly, the limits of what government budgets can support without changes in Bank and IDA Lending, Fiscal 1980 the systems of traditional primary and secondary education, health delivery, and so on, Lending by the World Bank and IDA to are being rapidly approached. Fourth, slow or countries in the Region in fiscal 1980 totaled too narrowly based economic progress (itself $732 million for 30 operations, as compared the result, among other things, of ill-adapted with 35 operations, totaling $556 million, in education systems and poor health of the labor fiscal 1979. This amount represents a growth force) means that productive employment of 32%, most of which was due to an increase opportunities expand less rapidly than the in Bank assistance. number of those seeking employment, a situa- Following a slight decline in lending for tion that is complicated by legislation on agriculture in the Region in fiscal 1979, assist- wages. This situation, by itself, is a cause of ance to this sector increased by 37% in fiscal frustration among the people; combined with 1980. Agriculture continues to claim the larg- the fact that many job seekers are young and est share of total lending to the Region. After to some degree educated and heavily concen- agriculture, transportation ranked second in trated in a few urban centers, it is a source of the overall sectoral distribution. Bank lend- social tension, and with unabated demographic ing for technical assistance in the petroleum growth and rapid urbanization, no self-correct- sector was initiated during the vear with the ing solution is apparent. approval of a $5 million project in the Congo. The project is directed toward strengthening Outlook for the Region institutions in the sector, assisting the government, and executing special studies of oil This brief review of the Region could not do resources. justice to the variety of country situations. In Co-financing in the Region totaled $611 focusing on some of the main problems, areas million in fiscal 1980, compared with $112 of progress have been neglected, even though million in 1979 and $185 million in 1978. there are many, including those within the Each co-financed project attracted an average rural sector. In looking at the past, no effort of $34 million in co-financing during the year has been made to assess, even approximately, -more than triple the 1979 average of $8 mil- the truly great potential that lies within the lion and the 1978 average of $11 million. The Western African countries and, even more Region's largest co-financing effort in fiscal significantly, in the Region, as one vast eco- 1980-a $60 million loan to Mauritania for nomic unit. The potential is, of course, in the the development of two new open iron ore pits form of natural resources-agriculture, min- -involved co-financing from official sources erals, energy; it exists, more importantly, in of almost $300 million. The project's total cost the untapped energies of the people, especially was $501 million.6 the farmers, the young, and the women. Gov- Thus, while in the period, fiscal 1961-70, ernments of all countries have the opportunity the World Bank lent a little under $600 mil- to develop this potential specifically by creat- lion to 18 countries in the Region, at the end ing an environment favorable to incentives for of this decade (1971-80) it will have com- small farmers' activities rather than by intro- mitted over $3,900 million to 20 countries. ducing radically new forms of agricultural organization; improving productivity of proven crops, rather than introducing largely untested ones; experimenting with small or medium- 'Co-financing data have been compiled from World Bank reports of projects at the time of their Board approval sized irrigation projects, as well as mechaniza- and do not reflect changes in amounts since that time. 39 East Asia and Pacific

Trend in Lending, 1971-80 (US$millions. Fiscal years.) (00)Number ofOperations

2,368.9 Per capita - (40) - Borrowers Population GNP 19782 - 2,130.0 - Fiscal 1978-80 (000) (US$) - (40) -

Fiji 607 1,420 2,00 _ Indonesia 135,993 360 - 1,726.2 Korea, Republic of 36,648 1,160 - (37) Lao People's - 1,458.5 1,475.0 Democratic Republic 3,280 90 0,500 (35) (36) Malaysia 13,300 1,090 - _ - Papua New Guinea 2,927 560 - Philippines 45,639 510 - - I I - Thailand 44,517 490 r000 Viet Nam 51,742 170 - I H E Western Samoa 154 n.a. - 588.2 * * - (24) NOTE: The 1978 estimates of GNP per capita presented _24 U above are from the "World Development indicators" in - the World Development Report 1980. _ * *E* 'Estimates for mid-1978. World Bank Atlas methodology, 1976-78 base period. - n.a. Not available. ** 1971-75 1976 1977 1978 1979 1980 Annual Average

The countries of the East Asia and Pacific turbances and disorder. They survived these Region that are members of the World Bank 7 experiences and emerged as societies that set fall into three major groups. The first group centuries-old traditions as the basis for mod- constitutes the World Bank's major borrowers ernization. All were affected, in some measure, -Indonesia, the Republic of Korea, Malaysia, by the war in Viet Nam. the Philippines, and Thailand-with a total The third group in the Region comprises population of about 300 million. The second relatively small countries that belong to the group consists of the countries in the Indochina Pacific, rather than East Asian, cultures. They peninsula: the Lao People's Democratic Re- are Papua New Guinea, Fiji, Western Samoa, public, Democratic Kampuchea, and Viet and the Solomon Islands. They have a total Nam. These are low-income countries affected population of 4 million. Except for Western by several decades of war. Samoa, they are racially heterogeneous and Despite differences in political systems and have yet to develop a national consciousness. in the endowment of natural resources, these two groups do have a number of common features that have influenced their development. 'On May 15, 1980, the Bank's Executive Directors decided They all experienced colonial rule (except for that the People's Republic of China represents China in Thailand) and passed through wartime dsdis-)the enceWorld to China. Bank. Analysis in this chapter is without refer- 40 1971-1980-Regional Perspectives

The largest country in the group, Papua New place in an environment that included wide Guinea, though rich in natural resources, fluctuations in commodity prices and a net de- needs substantial outside financial support and terioration in terms of trade. These fluctua- assistance in developing its human resources; tions included the first, sudden increase in the the others are small island economies in similar price of petroleum. For the commodity pro- situations. ducers, the impact of higher prices was clearly favorable; for the net oil exporters, Malaysia Rapid Economic Growth and Indonesia, oil revenues provided the means to finance development efforts. For the net oil Following upon a generally good economic importers, the rising cost of fuel imports made record in the 1960s, most of the countries in the growth of exports an ever growing need the Region witnessed further rapid economic by the end of the decade. growth in the decade of the 1970s. The aver- During the decade, Korea, Malaysia, Thai- age weighted growth rate of the gross domestic land, and the Philippines moved substantially product (GDP) for the middle-income coun- towards becoming industrialized. In fact, the tries in the Region was 8% for the decade, development of indushas been a character- ranging from 10% in Korea to 6% in the istic.opmest of try has been chnraer- Philippines. Per capita growth in the middle- although the scale has varied, from that of income countries, as well as in Indonesia, was Indonesia, taking the first steps toward indus- as high as that experienced anywhere in the trialization, to that of Korea, which had ac- world. In contrast, Viet Nam and the Lao . a . . . b People's Democratic Republic, each affected quired a substantial idustrial structure by the by war and difficult postwar experiences, had end of the 1970s. very low rates of economic growth. At the same time, the need to feed growing The generally rapid economic growth of populations has focused attention on the agri- the Region was primarily the result of good culture sector in which most of the Region's economic management and of policies that population still works. The widespread adop- focused on expanding agricultural output and tion of new seeds and production techniques fostered the growth of exports. Growth took has increased yields and food supplies through-

Lendingto Borrowersin East Asia and Pacific,by Sectors (US$ millions. Fiscal years.) Annual Average 1971-75 1976 1977 1978 1979 1980 Agriculture and rural development $129.5 $ 470.0 $ 522.5 $ 794.2 $ 566.4 $ 786.4 Development finance companies 60.0 160.0 232.5 290.0 150.0 90.0 Education 40.2 93.0 83.0 40.0 164.0 138.0 Energy Oil, gas, and coal - - - - 4.9 179.0 Power 95.2 125.0 196.0 259.0 255.0 588.5 Industry 24.0 70.0 80.0 10.0 29.0 - Nonproject 20.0 75.0 - - - - Population, health, and nutrition 8.6 - 37.5 33.1 57.0 65.0 Small-scale enterprises 9.3 - - 44.8 25.0 - Technical assistance 2.6 13.0 - - 10.0 Telecommunications 16.1 31.0 - - 90.0 Tourism 8.2 - - - - - Transportation 139.3 342.0 248.0 246.5 389.7 253.0 Urbanization 11.2 58.0 52.5 8.6 102.0 166.0 Water supply and sewerage 24.0 21.5 23.0 - 287.0 103.0 Total $588.2 $1,458.5 $1,475.0 $1,726.2 $2,130.0 $2,368.9 Of which: Bank $475.1 $1,458.5 $1,452.0 $1,586.9 $1,791.6 $2,160.5 IDA $113.1 $ - $ 23.0 $ 139.3 $ 338.4 $ 208.4 Details may not add to totals because of rounding. East Asia and Pacific 41

Through two Bank loans, totaling $68 million, Thailand's agricultural extension services are being strengthened. Here, an extension worker checks on a crop of corn being grown on a farm in the northeastern province of Sisaket.

out much of the Region. Per capita food avail- Growth in per capita incomes during the ability increased an average over the decade decade was accompanied by improvements in of between 6% and 7%, making possible an general welfare. Life expectancy at birth, per- improved pattern of nutrition. At the end of haps the most important indicator of welfare, the decade, however, Indonesia, Laos, and rose in all the five countries that borrow most Viet Nam continued to depend heavily upon heavily from the Bank-Indonesia, Korea, imports of rice. The benefits from technologi- Malaysia, the Philippines, and Thailand. cal change and increases in irrigation facilities that the rice producers enjoy have not been distributed equitably to other producers of basic foods (such as corn, roots, and tubers), Rates of Economic Growth, 1971-80, many of whom remain among the "absolute in Selected Countries poor." There were periodic food shortages in (Calendar years.)9 some countries as a result of bad weather, pests 1971-74 1974-78 (estimated) and diseases, or, in the cases of Viet Nam, (%) (%) (%) Laos, and Democratic Kampuchea, because of Fiji 6.0 2.1 3.9 war and postwar problems. Indonesia 9.6 6.9 6.2 The Region also did well in generating ex- Korea, ports of, and incomes from the production of Republic of 9.5 11.0 7.5 other cash crops-sugar, oil palm, coconuts, Malaysia 10.0 7.2 7.3 cassava, rubber, tea, and coffee. In addition, Papua natural resources were important exports: New Guinea 5.7 -0.9 3.6 timber in Indonesia, the Philippines, Malaysia, Philippines 6.1 6.4 5.8 and Papua New Guinea; and minerals, such Solomon Islands 6.2 4.8 n.a. as tin, copper, and gold, in Malaysia, the Thailand 6.7 8.8 6.7 Philippines, and Papua New Guinea. n.a. Not available. 42 1971-1980-Regional Perspectives

But progress was not uniform, either among were important sources of income and invest- or within countries. As a result, many coun- ment in the 1970s. Lending by the World Bank tries, particularly during the second half of the became a significant part of this transfer of decade, began to focus their attention on the capital. In the latter part of the decade, Bank internal distribution of income and other loans were accompanied by substantial flows resources. of private capital, as the more creditworthy The 1970s also saw the beginning of a de- countries of the Region borrowed from the cline in fertility in East Asian countries that international banking system on commercial will slow down population growth in the future. terms. Korea, the Philippines, and Thailand

The fall in fertility has been most significant made increasing use of net transfers of capital 8 in Korea, but it has also begun in Indonesia, through the decade as they borrowed to main- Malaysia, the Philippines, and Thailand. None- tain momentum in their economic growth theless, the weight of the high population and to supplement domestic savings for invest- growth in the past is now being felt in the form ment. Official medium-term and long-term of substantial numbers of young people enter- capital provided a large part of this inflow, ing the labor force. The rate of growth in the one that covered the current account deficits labor force reached a peak in the 1970s when of Indonesia and a substantial part for Korea. it equaled or exceeded 3% yearly in Malaysia, The net transfers of capital were less signifi- the Philippines, and Thailand, and came al- cant for Thailand and Malaysia, but were most to that mark in Korea. important for the Philippines. The need to create more job opportunities The World Bank's share in total official became more urgent towards the end of the capital flows grew through the 1970s. In fiscal decade, especially as the elimination, or reduc- 1971, 22 loans were approved, totaling $398 tion, of poverty became more widely recog- million; by contrast, 40 loans and credits were nized as a major goal. The task of creating approved in fiscal 1980, for $2,369 million. jobs will need to be tackled in the context of Total commitments during the period, fiscal the heavier financial burden that has been 1971 to fiscal 1980, amounted to $12,100 mil- placed on the net oil importers in the Region lion; almost two-fifths (37% ) of this amount as a result of oil price increases. was accounted for by 80 loans approved in Except in the oil-producing nations, Indo- fiscal 1979 and fiscal 1980 alone, indicating the nesiaandmalavsia the oftes trade deteri- extent to which the pace of commitments in- nesia and Malaysia, the terms of trade deteri- creased during the period. Price increases ac- orated in the 1970s. The pattern, however, was counted for about half the increase in com- not uniform; until the sudden oil price in- mitments between fiscal 1973 and fiscal 1979; creases In 1974, and partly as a result of the nonetheless, lending doubled in real terms in surge in commodity prices of the previous the six years that followed the commodity price year, the Philippines and Thailand experienced boom and the oil price increases of 1973-74. favorable terms of trade. The Philippines reg- The World Bank's role in the transfer of istered a 15% improvement between 1970 and resources expanded greatly in the Region, par- 1974, but lost all the gain in the next three ticularly in the second half of the decade, when years. Thailand's terms of trade improved by inflows of capital increased in both absolute 17% between 1970 and 1973, but then fell by terms and as a proportion of total resource 34% in the next five years. The cost of oil transfers provided by medium-term and long- imports took a growing share of the value of term loans from all sources. In the two-year exports; for the Philippines, the proportion period, fiscal 1978-79, disbursements from the rose from 10% in 1970 to 25% in 1979; for Bank and IDA accounted for 20% of such Thailand, from 9% to 22%; and for Korea, capital inflows. Given the lag between com- from 15% to 21 %. mitments and disbursements, the substantial in- The creditable growth record of the 1970s crease in lending achieved during the 10-year was facilitated by substantial capital inflows, period has not yet been fully reflected in including those from the World Bank. Private resource transfers. Nevertheless, Indonesia, capital flows, including direct investments, Korea, the Philippines, and Thailand already were also important. However, external capi- rely heavily on the Bank. tal constituted only a small part of total capital formation; the largest part, 90% or more of the GDP in the Region, was financed by domestic savings. For the middle-income countries with high 8 "Net transfer of capital" refers to money that is available rates of growth, foreign trade and capital flows after deducting the payment of interest and principal. East Asia and Pacific 43

Pattern of Bank Lending pattern of growth has not been so firm and consistent; the impact of adverse external eco- The pattern of Bank lending, by sector, in nomic circumstances has been the main cause the 1970s generally followed the needs per- of this faltering in performance. Essentially, ceived by governments, often after completion in 1979 and 1980, all oil-importing countries of economic and sector work by the Bank. in the Region suffered from the effects of high Lending to the Region covered all the sectors and rising prices of oil, the recessionary ten- during the 10-year period, but was concen- dencies in the richer countries (that, in turn, trated in agriculture. Including rural develop- have led to outbreaks of protectionism against ment, irrigation, and land settlement, agricul- imports of manufactures), and the worldwide ture accounted for nearly one-third of total spread of inflation. On the whole, growth rates lending, reflecting the importance attached by have fallen-most notably in Korea, which both the Bank and its borrowers to maintaining had led the Region in growth. The two net the growth of food supplies and improving the oil-exporting countries-Malaysia and Indone- productivity of the majority of the population sia-were exempt from this tendency, although -those who live in the rural areas. Infrastruc- they also did not experience such high rates ture projects in transportation, power, water of growth as in earlier years. On the whole, supply, and telecommunications amounted to the terms of trade continue to be unfavorable 40% and industrial development and finance to the Region, although much depends on another 14% of the total. each country's particular commodity composi- Lending for industrial development was tion of trade. largely in the form of providing finance to in- The deterioration in the balance of payments termediaries that lent it, in turn, to industrial and debt position of the leading oil-importing enterprises. As the process of industrialization countries of the Region has increased the need proceeded in the 1970s, the need for the Bank for capital transfers and has heightened the to pay more attention to industrial lending be- importance of World Bank support. After the came apparent. Larger projects were financed first round of oil price increases that took directly, but the more important development place in the early part of the decade, the inter- was the attention given to industrial policy, national commercial banking system played a particularly policy pertaining to the export of major role in providing capital flows for oil- manufactures. The dialogue between the Bank importing countries. and governments on industrial policy had not led to substantive changes in project lending The alternative is for the oil-importing by the end of the decade, but the foundation countries to become less dependent on capital had been laid for an increase in industrial inflows; this alternative requires continued or lending and changes in its forms. faster growth in exports and a renewed em- About 90% of the Bank's lending to the phasis upon economies in imports, especially East Asian group of countries in the past 10 of fuels. Restructuring of the economies of the years has been to Indonesia, Korea, the Philip- Philippines, Thailand, and Korea may be re- pines, Thailand, and Malaysia. Only about 2% quired to achieve these ends; attention began of the total went to the countries of the Pacific to turn to such questions in fiscal 1980. The area-Papua New Guinea, Fiji, and Western World Bank, in discussions with governments, Samoa, whose populations comprise about I % has begun to explore ways in which its lending of the total of the Region. The development can be adapted to these restructuring needs. needs of these island countries are quite different from those of the rest of the Region; Bank and IDA Lending, Fiscal 1980 except for Western Samoa, all became independent after 1969 (Fiji in 1970, Papua New Lending by the World Bank to countries in Guinea in 1975, and the Solomon Islands in the Region during fiscal 1980 increased by 1978). The degree of mechanization of their 11% over the previous year. Six IDA credits economies is low, trained human resources are amounted to $208.4 million and 34 loans by still scarce, and subsistence agriculture is still the Bank accounted for $2,160.5 million. important. These countries are heavily de- These loans and credits went to nine coun- pendent upon outside capital and expatriate tries; 10 to Indonesia, nine to Thailand, eight skills. Bank lending has complemented sub- to Korea, and eight to the Philippines ac- stantial external assistance from other sources. counted for 88% of the projects and 95% of Although the most recent experience of the total lending. Fiji, Western Samoa, and Laos countries in the Region has continued to fol- were among the smaller countries that re- low the trends that emerged in the 1970s, the ceived loans and credits during the year. 44 1971-1980-Regional Perspectives

Agriculture and rural development con- natural gas pipeline and another for lignite tinued to be the predominant sector for lend- production to be used to replace imported oil ing, accounting for 17 projects and $786.4 in power generation. Six loans were also million, or 33% of the total lending for the made for infrastructure projects in transporta- Region. Agricultural lending in fiscal 1980 tion and water supply. Total lending in those constituted a 39% increase over the previ- two sectors amounted to $356 million, or 15% ous year, when the sector received 27% of of the total. The increase in lending for urban the total. projects continued in fiscal 1980, with three Power was the second most important sec- projects that totaled 63% above last year's tor, receiving $588.5 million, or about 25% of figure. the total, for six projects. Half of this amount There was also a sharp increase in funds went to Indonesia, with smaller amounts to committed under co-financing arrangements Korea and Thailand. Fiji also received a loan with the Bank and IDA in fiscal 1980. The for the development of hydroelectric power total rose to $914 million, or 84% above last to support its scheme to reduce the burden of year's level. Each co-financed project attracted the cost of imported fuel by developing alter- an average of $70 million in co-financed funds, native local resources. compared with $38 million in fiscal 1979.9 With similar objectives, lending for oil, gas, and coal, begun in a small way in fiscal 1979, 5 expanded to $179 million in fiscal 1980, the Co-financing data have been compiled from World Bank result of tworesultof projects twoprojets inin Thailand:hailad: oneforone for a doreports not reflectof prolects changes at thein timeamounts of theirsince Board that approval time. and 45 South Asia

Trend in Lending, 1971-80 (US$millions. Fiscal years.) (00)Number of Operations 2,436.5 (41) - Per capita - Borrowers Population I GNP 1978 - Fiscal 1978-80 (000) (US$) - 2,0770 - ~~~~~(36)_ Bangladesh 84,655 90 2,00o Burma 32,205 150 - India 643,896 180 1,648.9 Maldives 145 150 - (36) Nepal 1365 120 i 5700 1,349.2_ Pakistan 77,310 230 - (27) 1 Sri Lanka 14,346 190 - 1,164.2 - _ ~~~~~(32) NoTe: The 1978 estimates of GNP per capita presented -n (32) above are from the "World Development Indicators" in I ~00~ the World Development Report 1980. _ Estimates for mid-1978. - 682.7 World Bank Atlas methodology, 1976-78 base period. - (17)

1971-75 1976 1977 1978 1979 1980 Annual Average

South Asia's 900 million people make up the gap between investment resources needed about one-fifth of the world's total population and those on hand widen markedly as a result and close to two-fifths of the population of of a deterioration in the Region's terms of the less developed countries (other than those trade following the recent rise in the price of living in countries with centrally planned econ- oil, of which all countries, save Burma, are omies). In absolute terms, the Region is rea- major importers. sonably well endowed with natural resources During the 1970s, total output in South Asia that include extensive land and water, coal, oil, increased in real terms by about one-third. natural gas, hydropower potential, various This increase was a major accomplishment, metals and minerals, and forests. The popula- considering the numerous obstacles and ad- tion pressure on these resources is profound, versities that occurred during the decade, in- however, and given its low income per capita cluding recurring periods of drought and floods and high population growth rate, the Region in important parts of the Region. Most of the has been unable to generate internally the mas- growth in output was concentrated in the sec- sive resources for investment needed to de- ond half of the decade. Gains in output, how- velop fully its physical and human resources. ever, were largely offset by a continued and Indeed, the last year of the decade has seen rapid growth of population. By the decade's 46 1971-1980-Regional Perspectives

end, the Region's population had increased by Industrial development in the Region re- about 185 million, or almost a 26% increase mained below its potential for a variety of rea- during the 10-year span. Consequently, aver- sons, the more important of which were power, age income per capita during the decade rose transportation, and other infrastructural bot- by no more than 1I% a year and there was tlenecks, the inability to obtain adequate im- little improvement in living conditions for ports of needed raw materials and components most of South Asia's 350 million absolute poor, owing to the pressure on the balance of pay- whose numbers probably increased above those ments, and less-than-adequate performance in at the start of the decade. both the private and public sectors of industry. The rise in production makes up only a More attention is now being paid to improving part of the economic and social progress that the performance of public sector units and im- took place during the 1970s. In agriculture, proving the climate for the operation of private especially in India, substantial advances were industry. Higher priority is also being assigned achieved in technology and in the delivery of to infrastructural development. inputs and extension services to large and Progress in the social sectors throughout the small farmers alike. The sizable expansion of decade was modest in relation to the Region's areas under irrigation not only raised output, great needs; nonetheless, there were notable but also reduced the harmful effects of achievements and developments. In South Asia, droughts on production. This was dramatically as elsewhere, life expectancy at birth has con- demonstrated in India in fiscal 1980; despite tinued to rise. So, too, have school enrollment one of the worst monsoon failures on record, and literacy rates. Family planning has been its adverse effects on the food economy were making some progress as understanding of the limited. Moreover, through demonstration and roles and interrelationships of family planning, experience, the new techniques of cultivation education, health, nutrition, and sanitation has have been spreading and the stage has been grown. Concern for considerations of equity set for their being grasped in those parts of remained equally as important as concern for the Region where agricultural innovation has economic growth. Special efforts in generating yet to make headway. employment, such as through the small-scale

Lending to Borrowers in South Asia, by Sectors (US$ millions. Fiscal years.) Annual Average 1971-75 1976 1977 1978 1979 1980 Agriculture and rural development $175.2 $ 345.5 $ 451.0 $ 899.7 $ 541.7 $1,098.0 Development finance companies 62.9 65.0 29.0 113.0 - 140.0 Education 2.4 12.0 15.0 5.7 35.0 40.0 Energy Oil, gas, and coal 12.0 - 150.0 - 30.0 - Power 37.8 283.0 150.0 305.0 467.8 614.5 Industry 81.2 105.0 71.0 - 334.0 29.0 Nonproject 175.3 350.0 75.0 75.0 100.0 50.0 Population, health, and nutrition 7.2 - - - 32.0 78.0 Small-scale enterprises - - - 7.0 16.0 20.0 Technical assistance 0.8 7.5 3.0 - 10.0 3.0 Telecommunications 48.1 - 80.0 134.5 - 65.0 Tourism 0.8 - - - - - Transportation 62.3 114.6 70.0 22:0 206.5 113.0 Urbanization 7.0 - 49.0 87.0 - 56.0 Water supply and sewerage 12.6 66.6 21.2 - 304.0 130.0 Total $685.7 $1,349.2 $1,164.2 $1,648.9 $2,077.0 $2,436.5 Of which: Bank $102.2 $ 260.0 $ 394.0 $ 330.0 $ 300.0 $ 125.0 IDA $583.5 $1,089.2 $ 770.2 $1,318.9 $1,777.0 $2,311.5 Details may not add to totals because of rounding. South Asia 47

Road maintenance in Nepal Bank and IDA lending supporting transportation projects in South Asia totaled $838 million during the period, fiscal 1971-1980.

industrial and informal sectors, through rural total. In turn, agriculture still plays a major works, and wider application of intensive role in the Indian economy. farming, have increased so as to lift the in- During the first half of the 1970s, the Indian comes of the poor. New efforts and approaches economy grew at an average yearly rate of in rural and urban development were pursued. 2.3%; in the four-year period, fiscal 1976-79, At the start of the 1980s, the Region faces growth increased markedly, to an average of persistent and massive development problems, 5.7%. In fiscal 1980, however, total output and prolonged and sustained efforts are needed fell by about 3%, owing mainly to a weather- to alleviate them. Although these efforts must induced dip in agricultural production. In the be made largely by the countries themselves, first half of the decade, sluggish growth re- external financial aid and technical assistance flected the relative stagnation of agricultural will continue to play a vital role. To cushion output. One important cause was three years the effects of the deterioration in the Region's (1972-74) of bad monsoons. In addition, in terms of trade and to permit needed adjust- the decade's first five years, there was some ments in the structure of investments and de- loss of momentum in the spread of new tech- velopment policies, ways will have to be sought nology in foodgrain production in irrigated to secure larger capital inflows on suitable terms, areas; shortages of inputs were a major factor. Agriculture regained its vigor in the period, EconomicDevelopments fiscal 1976-79, when a succession of favorable monsoons, increases in irrigation, better pro- The Indian economy is a key force in South vision of inputs, and improved extension ser- Asia; the country's income and population vices resulted in an average growth of out- represent about three-quarters of the regional put of 4.4% a year. Foodgrain buffer stocks, 48 1971-1980-Regional Perspectives depleted in the early 1970s, were rebuilt to Much of the country's physical infrastructure substantial levels. Important gains were also re- had been damaged or destroyed, and economic ported in the production of other crops, includ- activity had come to a near standstill. Its eco- ing oilseeds, sugarcane, and cotton. The Bank nomic situation during the first years of inde- and IDA have provided increasing support for pendence was precarious. Relief, rehabilitation, Indian agriculture; during fiscal 1976-80, over and consolidation of government authority $1,000 million was lent in direct support of were unavoidably the paramount concerns of crop production. This amount included $106 the country's policy makers in the early and million in IDA credits directed specifically at mid-1970s. the improvement of research and extension During the second half of the decade, eco- systems in 10 Indian states. nomic conditions showed significant progress, The sluggish behavior of India's industrial helped by greater political stabilitv and better sector since the mid-1960s continued into the economic management. Stabilization measures, early 1970s; domestic and export demand was begun in 1975, brought severe inflation (80% both weak and erratic, and utilization of indus- annually) under control; fiscal years 1976 and trial capacity was constrained by a scarcity of 1978 were successful crop years, and despite foreign exchange. Conditions improved in the setbacks to agricultural production in fiscal latter half of the 1970s in this sector, too; 1977 and again in 1979, average real growth stimulated by more rapid agricultural growth of the economy of over 5% annually occurred and public investment, demand generally be- in the period, 1976-79. But the past two years came more buoyant, and foreign exchange have again demonstrated agriculture's vulner- reserves rose, leading the Indian government ability to weather conditions that can affect to liberalize, on a selected basis, controls on adversely both the foodgrain and jute crops. imported inputs. Average annual industrial Taking the 1970s as a whole, little improve- growth during the period, fiscal 1976-79, ment in living standards occurred. The growth reached nearly 7%, despite shortages of power, in total output by about one-quarter was railway cars, and basic commodities such as roughly matched by the 25% increase in popu- steel and coal. lation (to almost 90 million people at the start Although economic growth was modest dur- of the 1980s). Investment, which has been ing part of the decade, domestic savings and rising in recent years (to perhaps 14% of investment were high throughout; on a gross GDP), is still low and is mainly dependent on basis, both are now in excess of 20% of gross external assistance that finances more than domestic product (GDP), or about double the three-quarters of the development expendi- rate of the early 1950s. The availability of tures in the public sector. foreign exchange to the Indian economy increased markedly after 1975 in the wake, A Mixed Record among various factors, of a sharp rise in workers' remittances and growing disburse- Throughout much of the 1970s, the Pakistan ments of foreign assistance. At $7,400 million economy grew in real terms at about 4% by the end of fiscal 1979, foreign exchange yearly. As population growth was nearly 3% reserves exceeded 10 months' merchandise yearly during the decade, per capita incomes imports. increased only marginally. The economy was The country's comfortable foreign exchange affected by the separation of Bangladesh, flood- and foodgrain stock position facilitated the ing and drought in several years, and political adjustment, in fiscal 1980, to another bad uncertainties. Nationalizations in the early monsoon. Foodgrain production declined by years of the decade dampened private invest- some 12%, to 116 million tons. Industrial out- ment, while a substantial part of public invest- put stagnated; intensification of power short- ment went into capital-intensive projects with ages and other bottlenecks in infrastructure long gestation periods that had a limited short- and in the provision of inputs were the main term effect on output. Private consumption was reasons. The balance of payrrents also deteri- stimulated by increases in real wages and con- orated during the year, due to a massive in- sumer subsidies, and public savings were crease in the costs of imported petroleum and eroded. Serious pressures on the balance of disappointing export performance for the sec- payments, despite a spectacular growth of ond consecutive year. As a consequence, the workers' remittances, gave rise to heavy import coverage of foreign exchange reserves borrowing from abroad and rising debt re- fell markedly for the first time since 1974. payments. Bangladesh became independent in late During the past three fiscal years (1978-80), 1971 and immediately faced grave difficulties. economic growth accelerated to about 6% South Asia 49 yearly. Weather was more favorable, demand economy, slow inflation (18% in calendar for exports strengthened, and new policy initia- 1979), and increase public savings. Develop- tives-including improved price incentives for ment problems that remain include continued farmers, more liberal credit and tax incentives poor performance of the tree crops sector and for exports, denationalization of most agricul- state industrial corporations, emerging short- tural processing and some other industrial ages of skilled manpower, and the inability of units, and a widening of the scope for private the construction industry to meet the sharp rise investment-were inaugurated. Steps were also in demand. initiated to improve productivity in agriculture In the 1960s and early part of the 1970s, and industry, although these efforts are still at Burma also experienced slow economic an early stage. The low level of domestic sav- growth. The government's main preoccupation, ings remains a serious problem, and budgetary to establish a self-reliant, planned economy, and external problems have persisted. was reflected in policy initiatives that included In Sri Lanka, average economic growth dur- widespread nationalization, industrialization, ing much of the decade (1970-77) was 2.9% price stabilization, and an extension of public yearly, down from 4.4% in the 1960s. Growth services into rural areas. The key agricultural was hampered by a persistent shortage of for- sector and the country's infrastructure received eign exchange, inadequate levels of savings little attention; exports and government reve- and investment, and an inefficient use of avail- nues stagnated, and serious shortages of con- able resources. Continued high social expendi- sumer goods emerged. tures, including those for food subsidies, were Since the mid-1970s, however, economic a major factor in declining (and ultimately growth has accelerated. During the four-year negative) public savings. (In recent years, period, fiscal 1975-78, growth was almost 5%, however, the country has successfully reduced in contrast with the 2.5% to 3.0% rate the burden of its social programs as a propor- achieved in the previous decade. Paddy pro- tion of the budget by focusing them on the duction reached record levels, responding to lower-income groups.) Resource constraints higher procurement prices and favorable were aggravated by seriously worsening terms weather, and a major tax reform helped free of trade. The tree crops sector (tea, rubber, additional resources for investment. Industrial and coconut), the country's largest foreign growth also accelerated. In fiscal 1978 and exchange earner and the largest source of gov- 1979, overall growth reached about 6%. This ernment revenues, suffered from neglect. faster growth was the result of improved capac- Paddy production did not fare well either, in ity utilization that was facilitated by an some years owing to bad weather, but due prin- increased availability of imported intermediate cipally to deteriorating institutional support. and capital goods. Economic improvement has The only bright spot in agriculture was the been only partial, however; the large public rapid expansion in output of subsidiary food enterprise sector remains to be improved fur- crops (such as cassava, corn, chilies, onions, ther, and although exports have increased and potatoes). Manufacturing similarly suf- moderately in volume, they are still far lower fered from resource constraints and inefficient than the levels achieved in the mid-1960s. management. Open unemployment increased, Both teak and rice exports have increased reaching over 1 million in 1977, or almost recently, but there is still room for improve- one-fifth of the labor force. ment in the quality of the latter. In mining, Following major policy reforms by the gov- crude oil production has increased to such a ernment,' 0 economic performance improved degree that a surplus is available for export; during the final three years of the decade. development of other minerals has been grad- Growth in 1978 and 1979 averaged over 7%. ual, however. Bottlenecks in the transport Except for the tree crops sector, growth was sector are being tackled. Major issues that spread throughout the economy, helped by record paddy harvests that benefited from favorable monsoons. Savings and investment increased markedly and unemployment de- I°The reforms included a unification of the exchange rate, a liberalization of import licensing and exchange controls, clined to about 15%. By the end of 1979, gross policy-induced increases in prices of essential commodities and services, and a major expansion of public invest- foreign exchange reserves, strengthened by ment. Among the most imaginative of these investment growing amounts of external aid and nontradi- schemes is the accelerated implementation of the Meaha- weli Ganga development program that aims to develop tional exports, and despite a sharp rise in 365,000 hectares of land for irrigation (increasing the had thereaced euivalentof four country's total amount of land under irrigation by two- imports, had reached the equivalent of four thirds) and to develop vast hydroelectric resources. The months' imports. Early in 1980, budgetary first phase of this accelerated prograrm,costing more than $1,700 million, has found significant backing from the retrenchment measures were taken to cool the development community. 50 1971-1980-Regional Perspectives remain to be resolved are those concerned 80% of the total population still lives in rural with setting equitable prices for farmers as an areas. incentive to produce more, increasing domestic Agricultural output must be expanded to savings (especially through current surpluses meet the needs of a growing population. Fail- of state economic enterprises), promoting ex- ure to do so would mean an increasing and ports, and allowing more flexibility in economic unmanageable dependence on food imports management. and a further outflow of foreign exchange. Nepal remains one of the world's poorest Thus, increasing the production of foodgrain, countries. In the hills, where nearly two-thirds the key element in the diet, will remain the of the population lives. the fragile environment most important objective of agricultural policy, continues to deteriorate. Soil erosion is accel- although increasing attention to livestock and erating as population pressures lead to the fisheries development, fiber crops and agro- stripping of the steep hillsides to meet the industries, and related subsectors with export requirements for crop land, fuelwood, and potential will become necessary as foodgrain livestock fodder. Shortages of food and work self-sufficiency comes closer to achievement. have caused large seasonal and permanent Priorities in the agriculture sector include, migration to the Terai plains. Despite recent but are not limited to: progress in expanding its development pro- -A continuation, in India, of development gram, overall economic performance was dis- strategies pursued successfully in the 1970s, appointing during the 1970s. Because Nepal's with emphasis on improved water availability economy is predominantly agricultural, the and management, increased supplies of inputs, failure of foodgrain production to keep pace intensification and streamlining of extension with population growth, now estimated at systems, and continued effective pricing pol- about 2.6% yearly, is at the heart of the coun- icies. try's economic problems. Rice exports, tradi- -Overcoming limited productivity in both tionally the country's largest export item, have Bangladesh and Pakistan: in particular, been falling. The economic situation deteri- through additional low-lift pumps, tubewells, orated further in 1980. The severe impact of and other inputs and an improvement in imple- the poor monsoon in 1979 created a need mentation capacity in Bangladesh so as to for emergency imports of foodgrains at a time fulfill the goal of self-sufficiency in food as when its oil import bill increased sharply. envisaged in the country's new five-year plan The economy of the Maldives is heavily beginning in July 1980; and, in Pakistan, dependent on fishing and tourism. During the through more efficient utilization of the water i970s, the fisheries sector grew slowly, but resources of the Indus basin. tourism expanded rapidly; since fiscal 1978, -Improvements in productivity in Sri tourism has overtaken fishing as the country's Lanka through the upgrading of paddy cultiva- major foreign exchange earner. Economic tion practices, tree crops rehabilitation and growth is estimated to have averaged 12.5% diversification, and an expansion of cultivated annually between 1974 and 1978. Food imports areas, in particular through the Mahaweli have been increasing, due, in part, to a rate of program. population growth that is close to 3%. The -Intensified use of existing cultivated areas, government has started only recently to ad- reclamation of abandoned lands, improvement dress, in a more concentrated manner, the in the delivery of inputs, and a strengthening country's economic development problems. of forestry management in Burma. These include the need for improvements in Limiting population growth remains the basic economic and social infrastructure. top social priority in most countries of the Region. The annual growth rate in India has Developmental Priorities been falling and is now probably below 2%; but heavy population pressure on limited South Asia has the potential for accelerated resources makes family planning a continuing, economic growth during the 1980s at a rate urgent task. Even assuming an ongoing, fairly well in excess of population growth. A major rapid decline in fertility, India's population will sectoral engine for the growth must be agricul- increase by more than 1 million people a ture, for the regional economy is still pre- month for the next 20 years. In Bangladesh, dominantly agricultural, India's-and, to a population control is a very pressing issue, lesser extent, Pakistan's-substantial industrial given the country's already high population base notwithstanding. Despite the rapid growth density, scarce resources, and widespread pov- of major cities in the Region, the subcontinent erty. The national population and health im- has maintained its rural complexion; about provement program requires more determined South Asia 51 efforts; even if successful, the country probably for agriculture and rural development. A total will still have to support 130 million to 145 of 19 credits was made in support of this sec- million people by the year 2000. Pakistan and tor. Power ($615 million, or 25% of the total) Nepal have serious population problems that remained the second largest sector of lending. have yet to be recognized at the policy level. Nonproject lending ($50 million in fiscal Sri Lanka has continued to be successful in 1980) over the last four years has been limited promoting birth control; its population is cur- to Bangladesh. Other lending ($674 million) rently increasing at only 1.8% yearly. Burma in fiscal 1980 was spread over industrial devel- has a moderate population density, but in some opment and finance, transportation, water sup- parts, population pressure is growing, and ply and sewerage, population and nutrition, family planning has not yet received the telecommunications, education, urbanization, attention it requires. and technical assistance. Funds committed under co-financing ar- BSankand IDA Lending, Fiscal 1980 rangements with the Bank and IDA reached $375 million, or 11 % below last year's level, During fiscal 1980, Bank and IDA lending to but 191 % above the 1976-78 average. All but the Region amounted to $2,436.5 million, an $7 million in co-financing funds were ac- increase of 17% from fiscal 1979. The num- counted for by official sources. ber of projects assisted rose by five to 41. The Each co-financed project attracted an aver- capacity of South Asian countries to borrow on age of $29 million in co-financing during the Bank terms remained limited; consequently, year, compared with about $33 million in fiscal except for two Bank loans to India totaling 1979 and $29 million in fiscal 1978.11 $125 million, all financing was done on IDA terms. As in previous years, the largest share of "Co-financingreports of projects data have at thebeen time compiled of their from Board World appToval Bank lending ($1,098 million, or just 45%) went and do not reflectchanges in amountssince that time. 52 Europe, Middle East, and North Africa

Trend in Lending, 1971-80 Per capita (US$millions. Fiscal years.) Borrowers Population' GNP 1978' (00) Numberof Operations 2,445.7 Fiscal 1978-80 (000) (US$) ______2,336.6-(49)- Afghanistan 14,616 240 - Algeria 17,625 1,260 Cyprus 646 2,120 _ _ Egypt, Arab Republic of 39,855 390 2,000 1,855.9 Greece 9,405 3,250 - (44) - Jordan 2,984 1,050 1,570.1 _ Lebanon 3,012 n.a. 5 1,485.6 (44) Morocco 18,914 670 1,500 (45) Oman 839 2,570 Portugal 9,798 1,990 - Romania 21,872 1,750 - 912.4 Syrian Arab Republic 8,102 930 LOOO(38) Tunisia 6,039 950 - Turkey 43,144 1,200 - Yemen Arab Republic 5,648 520 _ Yemen, People's Democratic Republic of 1,750 420 - Yugoslavia 21,963 2,380 - NOTE: The 1978 estimates of GNP per capita presented _ above are from the "World Development Indicators" in the World Development Report 1980. 1971-75 1976 1977 1978 1979 1980 X Estimates for mid-1978. Annual 2 World Bank Atlas methodology, 1976-78 base period. Average n.a. Not available.

The Europe, Middle East, and North Africa tries. This juxtaposition of capital-surplus and Region comprises a group of member coun- capital-deficit countries within the Region has tries with widely diverse social, political, and been a major factor in the area's economy economic characteristics. In terms of per capita during the last development decade. income levels, the countries in the Region The countries of the Region are so diverse range from those having the highest income in natural resources, levels of economic devel- of all present Bank borrowers (Portugal, opment, and in their social, cultural, and poli- Romania, and Yugoslavia) to those (such as tical systems that the impact of international Afghanistan, the People's Democratic Republic economic forces during the 1970s has been of Yemen, and the Yemen Arab Republic) felt in different ways and degrees in different that, being among the least developed, are groups of countries. The response to develop- recipients of IDA credits. The Region also ments in the international economy has been includes many of the world's major oil-export- determined not only by countries' needs in ing nations-whose per capita incomes and terms of income, but also by their differing financial resources have placed them above political and administrative systems. In many the need for World Bank borrowing-that countries, economic development during the together, have become a major source of de- decade of the 1970s was interrupted, more or velopment assistance capital for other coun- less severely, by political and military conflict. Europe, Middle East, and North Africa 53

During this period, a major war occurred in traded manufactures. Countries in which state the Middle East and there were several in- control of prices is important have reviewed stances of conflict or revolution involving pricing policies (Egypt since 1977, Morocco member countries. since 1978, Romania in 1974-77, Turkey in Despite these problems, most countries in 1977-79) and, in some cases, substantial adjust- the Region had achieved substantially higher ments have been made. income levels by the end of the decade, and six countries graduated from eligibility for Economic and Financial Developments Bank lending (Finland, Greece, Iceland, Ire- During the past decade, the countries of the land, Israel, and Spain). In several cases, the Region have been subject to two major sets of final projects were sophisticated and innova economic forces, those largely international in tive, such as one in fiscal 1977 for industrial re- origin (inflation, slower trade in recent years, search and development in Spain, and one for rising energy costs, and changing patterns pollution avoidance in Finland (fiscal 1975). of international migration) and those whose In many countries in the Region, the decade origins were domestic (demographic pressures, also saw major efforts in a new pursuit of social food shortages, unemployment or underem- development objectives, including those re- ployment. and a lack of facilities to deliver lated to employment, rural and urban develop- basic needs), thus creating a need for structural ment, education, and health; some countries adjustments in production and consumption. had also undertaken important institutional re- Taking the Region as a whole (except for the forms designed both to improve domestic special group of major oil exporters), its coun- economic efficiency and to respond to new tries can be placed into two broad groups ac- conditions in the world economy. cording to whether the net impact of these Institutional reforms have been a particular forces has been growth enhancing or growth feature of the last decade in several of the inhibiting. In most nonoil-exporting countries, Region's member countries. In Yugoslavia, the economic growth was somewhat less rapid i970s saw a continuation of the process of during the second half of the decade than dur- decentralization that was begun in 1965; in ing the first half. This is evident from the ac- Romania, which has a centrally planned econ- companying table on average annual growth omy, improved systems of planning and rates, which suggests that a loss of dynamism performance indicators were introduced. In was the net result of the adjustments these several other countries, exemplified by Egypt's countries made to inflation, recession in mem- "open door" policy and its renewed encourage- ber countries of the Organisation for Economic ment of the private sector, the state's role in Co-operation and Development (OECD), development and planning has been reassessed and, in some cases, the organization and operation of state enterprises and other parastatals have become a topic for study and policy re- Average Annual Growth Rates in GNP for form. In yet other cases (Portugal, the People's Selected Countries Democratic Republic of Yemen, and the tFiscal years.) Yemen Arab Republic), the role of the state Yearly percentages was strengthened through nationalization (Por- tugal) and through the development of central Groups 6.9 6.1 planning institutions. Thus, true to their diver- Morocco 5.7 5.1 sity, the countries of the Region have exhibited Portugal 4.6 4.4 a variety of responses to new economic cir- Romania 11.9 8.4 cumstances, ranging from those where state Syrian Arab Republic 10.7 5.7 intervention has increased to those in which Tunisia 9.5 6.8 there has been some devolution to market Turkey 7.0 4.4 forces. Yugoslavia 6.8 5.8 In almost all countries, regardless of their Group 11' economic systems, the question of the pricing Algeria 7.3 8.7 of resources has become a subject of major Egypt, Arab Republic of 6.5 10.5 Greece 5.0 5.4 deliberation. The attention paid to pricing Jordan 8.1 11.5 derives partly from a heightened concern over Yemen Arab Republic 7.8 9.5 the utilization of energy resources, partly from Note: The growth rates have been calculated on the basis of increases in the cost of food (for which, in constant prices, for fiscal years. many countries in the Region, there are heavy International conditions affecting Group I countries have, on balance, been gro th inhibiting; those in Group II have subsidies), and partly, also, from inflation in been growth enhanciwng. 54 1971-1980-Regional Perspectives higher costs of energy, and declines in the terrns In a second group of countries, the economic of trade that occurred from the early to environment has, on balance, been growth the mid-1970s. enhancing. Two countries (Algeria and Egypt) To be sure, diverse factors affected the benefited when revenues from energy exports Region's countries. For example, Portugal, rose. In other countries (Jordan and the Turkey, and Yugoslavia all suffered (though to Yemens), a rapid expansion of remittances varying degrees) from reversals, beginning in from the growing migration of workers into the late 1973, in the growth of remittances from capital-surplus countries, together with in- laborers working in the industrialized countries creased capital grants and (in Jordan) a more of Western Europe. These reversals com- active export-oriented investment strategy, has pounded the impact of other factors on their enhanced their capacity to borrow abroad, balance of payments, leading, in turn, to for- hence further expanding their potential for eign exchange shortages that were only partly growth. offset by increased foreign borrowing. In other In the major oil-producing countries of the cases, where a single export commodity is a Region, the unprecedented increase in export major factor determining growth, price de- revenues after 1973 resulted in a dramatic im- clines in the second half of the decade were provement in their financial and economic an important contributor to slower growth, status. Total petroleum production expanded pointing to the need for a structural diversifica- from 17 million barrels a day in 1970 to about tion of exports in such countries. In Syria, 22 million barrels a day in 1980. In terms of unpredicted changes in aid flows, partly the value at current petroleum prices, government result of tensions in the area, at times served revenues from this production were about to impair the implementation of that country's $11,000 million in 1970, and it is estimated development plan. In Romania, an earthquake that they will rise to over $200,000 million in in 1977, coming after a major flood in 1975, 1980. This development transformed the na- accentuated the slowdown in the rapid growth ture and level of economic activity in the sub- rates achieved in earlier years. region, as these countries increased their

Lendingto Borrowers in Europe, Middle East, and North Africa, by Sectors (US$ millions. Fiscal years.) Annual Average 1971-75 1976 1977 1978 1979 1980 Agriculture and rural development $ 212.0 $ 402.0 $ 429.5 $ 559.2 $ 636.0 $ 685.5 Development finance companies 156.6 160.0 239.0 75.0 150.0 230.0 Education 54.1 88.9 79.5 191.0 188.0 146.0 Energy Oil, gas, and coal 18.3 49.0 - - 77.5 146.0 Power 163.5 258.5 142.5 118.0 276.0 263.0 Industry 89.9 142.0 126.8 247.0 234.0 246.0 Nonproject 14.0 - 70.0 50.0 150.0 200.0 Population, health, and nutrition 5.3 - 4.8 - 25.0 - Small-scale enterprises 8.5 46.0 45.0 - 25.0 20.0 Technical assistance 0.6 - 1.5 - - - Telecommunications 35.1 28.0 - 53.0 - 22.0 Tourism 11.9 27.0 26.0 - 32.5 - Transportation 190.3 146.2 232.5 390.0 406.6 451.0 Urbanization 12.5 - - 32.0 19.0 - Water supply and sewerage 53.9 138.0 173.0 140.7 117.0 36.2 Total $1,026.3 $1,485.6 $1,570.1 $1,855.9 $2,336.6 $2,445.7 Of which: Bank $ 912.4 $1,341.9 $1,474.3 $1,660.5 $2,081.5 $2,174.0 IDA $ 113.9 $ 143.7 $ 95.8 $ 195.4 $ 255.1 $ 271.7 Details may not add to totals because of rounding. Europe, Afiddle East, and North Africa 55

A young boy working in a field of stgarcane in Morocco. Bank and IDA agricultural investments in the Europe, 4MiddleEast, and North Africa Region amoutnted to $3,772 nlilliondurinig the period, fiscul 1971-1980.

consumption levels and, at the same time, un- and North Africa (excluding Algeria and Iran) dertook massive programs to restructure the averaged 5.7% of their gross national product productive and service base of their economies. (GNP) during the period, 1974-78. Given the limited agricultural potential of The issue of international labor migration the subregion, this restructuring has generally and its impact is worthy of particular mention taken the form of large-scale industrial and since, during the 1970s, the Region experi- urban expansion, as well as the development enced two major patterns of migration. First, of infrastructure and services. While such in- many countries in the Mediterranean basin, vestments have been greater than could be exe- for some years, had seen migrant workers move cuted using local labor, in most cases (with the into industrialized Western European coun- notable exception of Algeria), they have been tries in numbers that grew to over 8 million by less than the total accumulated savings arising the early 1970s. Remittance flows from these from government oil revenues. Consequently, workers to their home countries grew to about the subregion has become both a major im- $5,000 million annually, and, in some countries porter of labor and a major exporter, in various (Morocco, Portugal, Turkey, Yugoslavia), had forms, of capital. In addition to the direct re- become a major item in the balance of pay- mittance flows from migrant workers, the ments. The migration also involved significant subregion has become a major source of devel- proportions of the labor force in these coun- opment finance through bilateral aid and multilateral assistance channeled through sev- 2 eral subregional and country funds and banks,1 wThese include the Abu Dhabi Fund, the Arab Fund for as well as through the various international Economic DevelopmentnAfricaent tBAhDeArah Bank for agencies. Total net development assistance Development Bank, the Kuwait Fund, the OPEC Fund for InternationaizlDevelopment, the Iraqi Fund for Ex- from the OPEC countries of the Middle East ternal Development,and the Saudi Fund, among others. 56 1971-1980-Regional Perspectives tries. For example, in Portugal, about 12% of of imports, coupled with slow growth in export the labor force was working abroad; in Turkey markets, have combined to produce the poten- and Yugoslavia, about 5%; and in Morocco, tial for sharply widening current account defi- about 7%. In these cases, migration to indus- cits in many member countries. The estimated trialized Western Europe was as much the aggregate current account deficit of all borrow- result of a lack of productive employment oping member countries in the Region in fiscal portunities as of wage differentials. Migration 1980 was on the order of $26,000 million. This was checked by the recession in Europe that deficit compares with a total of only about began in 1974; as a result, local employment $14,000 million in fiscal 1978. Despite gen- problems in the workers' home countries and erally unsettled conditions in world financial balance of payments difficulties, to which other markets, and although commercial banks factors had also contributed (e.g., the return of reflected a greater consciousness of their new more than a half-million Portuguese from over- and considerable exposure in developing coun- seas colonies after 1974), were exacerbated. tries, the deficit was financed mainly by ex- This episode-the latest phase of a process of panded borrowing abroad and, in some cases, migration that had been going on for more than from capital grants. However, the net impact a decade-carried with it the lesson that, while of these conditions was to constrain growth countries may benefit from exporting migrant yet further so that, with only three exceptions labor, it is risky to become too dependent on (Algeria, the Yemen Arab Republic, and Yugo- the remittance flows from that labor as a major slavia) each country's GNP is projected to source of foreign exchange. grow at a slower rate in 1980 than the average The second migration pattern involved the for the previous five years. rapid increase in the number of workers to In Egypt, while growth was somewhat less the oil-producing countries. At present, there and inflationary pressures continued, the are some 2.7 million migrant workers in these decade brought with it the prospect of a new countries from Egypt, Jordan, Lebanon, Syria, era of peace that could allow fresh attention and the two Yemens, as well as from other to be given to development issues. In Turkey, countries outside the Region. Collectively, a package of stabilization measures was intro- migrant workers remit some $8,000 million a duced that included a devaluation, price and year to their home countries, a total that ex- interest rate adjustments, and credit restraints, ceeds gross aid flows to them. To this extent, all aimed at sustaining the country's finances migration is not only a benefit to the receiving sufficiently to permit a renewal of investment countries, permitting urban, industrial, and and growth. In Portugal-although unemploy- agricultural growth; it also serves as a major ment is currently running at 8.1%, despite a mechanism to redistribute foreign exchange current account deficit for calendar 1980 that from the oil-rich states to the surrounding the government estimates at $800 million, and countries and to increase family incomes in the the prospect of low growth in GDP (4%) for thousands of village communities that provide the year, notwithstanding-earlier stabilization the labor. Migration, however, does have its programs showed signs of being successful. social and economic costs. The labor-exporting There was a return to a strong growth in ex- countries have, in certain cases, lost up to 30% ports and the country's reserve position was of their labor force and an even higher pro- substantially strengthened after the rise in the portion of their qualified manpower. Man- price of gold. In several other countries in the power shortages in all sectors have resulted. Region, however, geopolitical tensions and While the future course of the migration is not other problems of a noneconomic nature con- clear, authorities in the labor-exporting coun- tinued to interrupt, to a greater or lesser degree, tries are responding with measures to com- the course of development. pensate for its negative effects by, among other things, accelerating training programs that are Structural Change and the World Bank's often conducted with the support of the World Sponr k Bank, as in Egypt, Jordan, Syria, and the Response Yemen Arab Republic. The common, emerging needs of many borrowing member countries in the Region during Developments, Fiscal 1980 the last decade have been for structural change in response to higher costs of energy and of Conditions in the Region in fiscal 1980 en- other imports; for expanded domestic food capsulate many of the principal features of supplies; increased productive employment the decade. Further increases in oil prices and and provision of social services to larger popu- continuing high rates of inflation in the prices lations in both rural and urban areas; for Europe, Middle East, and North Africa 57 export diversification and expansion; improved one import program loan in fiscal 1979 to help access to international financial markets; and, ease that country's balance of payments dif- in many cases, for accelerated development of ficulties that resulted partly from rising costs manpower and other human resources. The of imported energy; a loan to support the struc- World Bank responded flexibly to these needs tural adjustments in the Turkish economy that and shaped both its lending operations and its were initiated by the government was approved other forms of assistance to meet them. in fiscal 1980. The increase in Bank lending during the The emergence, in the mid-1970s, of capital decade was accompanied by several important surpluses in the oil-producing countries led the changes in the sectoral composition of its lend- Bank to develop a new relationship with those ing, which reflected a new emphasis on alleviat- countries. Although most of the oil exporters ing poverty in rural and urban areas. Respond- did not need capital transfers from the World ing to many countries' concerns for the social Bank, they still required technical assistance objectives of development, the Bank dramat- in the form of project preparation and advice ically expanded its share of lending for agri- on policy. To meet these needs, the Bank culture, which at the end of the decade, ac- organized within its office for the Region a counted for 25 % of total lending in the Europe, Technical Assistance Division to provide assist- Middle East, and North Africa Region, com- ance, on a reimbursable basis, in sectoral policy pared with 13% in 1971. In the second half planning, project appraisal, procurement pro- of the decade, almost half of the agricultural cedures, and project monitoring systems. projects were designed to benefit the rural Illustrative of the wide range of technical poor. Increased attention was also given to assistance work provided in the fiscal 1975-80 agro-industries, forestry, and fisheries. In sev- period is a series of sector strategy reviews in eral countries, the Bank contributed to the Kuwait; manpower and labor market studies improvement of social conditions in urban in the United Arab Emirates and Saudi Arabia; areas through its lending for employment- a project cost study in Libya; and, in Saudi generating activities, through assistance for Arabia, a ports study, several petrochemical education and training, by upgrading squatter project appraisals, the development of a project areas, and through provision of potable water monitoring system, and assistance in the prepa- supplies and sewerage facilities. As part of its ration of a human resources plan. The Bank concern with health, nutrition, and population also continues to undertake, at its own expense, issues, the Bank helped finance a first popula- country economic work in some capital-surplus tion project in Tunisia in fiscal 1971 and a countries; reports have been prepared, for ex- similar project three years later in Egypt that ample, on Bahrain, Kuwait, Libya, Qatar, and was repeated in fiscal 1979. The Bank also the United Arab Emirates. approved post-earthquake rehabilitation loans The Region's technical assistance operations to Romania and Yugoslavia, a ports rehabilita- were not confined to the oil-exporting coun- tion loan following a volcanic eruption in Ice- tries; the Yemen Arab Republic, for instance, land, a loan to repair flood damage in Romania, received three technical assistance credits dur- and pollution avoidance loans to urban areas ing the decade. in Turkey and Yugoslavia. During the second half of the decade, energy Aid and Financial Coordination became a priority. In responding to the Region's needs, the Bank chose not only to continue its The World Bank was able to contribute sig- traditional lending activities in the electric nificantly to its borrowers' needs for capital power sector, but also, to encourage policies transfers beyond its own lending by securing for conservation and for coordinated develop- co-financing for its projects, particularly in the ment of a full range of energy sector studies later years of the decade. The principal agen- in several countries (Egypt, Jordan, and Syria); cies active in co-financing Bank projects were it assisted in the design and financing of the Kuwait Fund for Arab Economic Develop- innovative projects, such as the gas gathering ment, the Arab Fund for Economic and Social and gas distribution projects in Egypt; and, Development, the Kreditanstalt fur Wiederauf- in fiscal 1980, the Bank helped finance the first bau, and a number of commercial banks. The two petroleum exploration projects in the Bank's role in convening a consultative group Region-in Morocco and the People's Demo- for Egypt in 1977 contributed to aid flows to cratic Republic of Yemen. In many countries, that country. Similarly, in the case of Jordan, the Bank is engaged in a continuing dialogue the Bank led, during the past fiscal year, the ap- on the utilization, pricing, and financing of praisal of a major dam and irrigation project energy resources. In Turkey, the Bank made whose financing by a group of other external 58 1971-1980-Regional Perspectives donor agencies will come to substantially more the Region, compared with 51 projects for than the Bank's own commitment. S2,337 million in the previous fiscal year. Funds committed in fiscal 1980 under co- Lending for agricultural and transportation financing arrangements with the Bank and development accounted for 28% and 18%, IDA reached $1,529 million, or 65% above respectively, of the total for the Region. As last years level. in the recent past, the Region remained one Each co-financed project attracted an aver- of the major recipients (about 20% ) of Bank age of about $80 million in co-financing during lending to industry and development finance the year, compared with about $34 million in companies. fiscal 1979 and $62 million in fiscal 1978.13

Bank and IDA Lending, Fiscal 1980

In fiscal 1980, Bank and IDA commitments '3Co-financing data have been compiled from World Bank reports of projects at the time of their Board approval and of $2,446 million helped finance 49 projects in do niot reflect changes in amounts since that time. 59 Latin America and the Caribbean

Per__caPita__ Trend in Lending, 1971-80

Borrowers Population 1 GNP 1978' (US$millions. Fiscal years.) Fiscal 1978-80 (000) (US$) (00)Number of Operations

Argentina 26,386 1,910 3,000 Barbados 250 1,960 - 2, Bolivia 5,291 510 (49) - Brazil 119,461 1,570 - Chile 10,734 1,410 2,!O0 Colombia 25,573 850 2,264.8 Costa Rica 2,111 1,540 2,110.1 (50) Dominican Republic 5,128 910 - Ecuador 7,814 880 2,0 0 0 1,893.2 El Salvador 4,283 660 -(48) Guatemala 6,621 910 = Guyana 823 560 - Haiti 4,831 260 1soo (42) Honduras 3,440 480 - Jamaica 2,133 1,110 Mexico 65,442 1,290 - Nicaragua 2,499 840 Tio 861.4 Panama 1,809 1,290 - (30) Paraguay289 5 Peru 16,820 740 = Trinidad and Tobago 1,132 2,910 s oM_ Uruguay288 160

NoTE: The 1978 estimates of GNP per capita presented - above are from the "World Development I1ndicators" in the World Development Report 1980. >. .. 1 Estimates for mid-1978. 1971-75 1976 1977 1978 1979 1980 2 World Bank Atlas methodology, 1976-78 base period. Annual Average

Despite considerable differences in size, en- large measure, the result of years of sustained dowment of resources, climate, and compo- concern with, and pursuit of, improved eco- sition of population, many of the countries in nomic policies, and came about despite a num- the Latin America and the Caribbean Region ber of adverse developments in the world share a common set of experiences and face economy. similar development problems. During the past Much remains to be accomplished, however. decade, most of the Region's countries made Most of the countries of the Region have not considerable progress. Although population yet completed the transition to modern econ- continued to grow at a rapid pace, there was a omies and, in many, a limited modern sector substantial rise in per capita incomes through- that is confined to a narrow geographic area out much of the Region; in addition, education has been superimposed on a larger, traditional, systems were expanded, and nutrition and and economically poor base. health conditions improved. Technological Continued steady growth in the Region is change and diversification of the countries' hindered by several domestic and international economic structure, characterized, in part, by problems. A number of countries that rely a growing industrial base and greater urbaniza- heavily on imported petroleum to meet their tion, were accompanied by a rapid growth of domestic requirements have experienced a manufactured exports. These gains were, in deterioration in their terms of trade as world 60 1971-1980-Regional Perspectives petroleum prices have increased. Several others in the mobilization of national savings. Balance are still highly dependent on the export of a of payments performance for the Region as a few commodities. Efforts to foster an increased whole was strong during this period. Export efficiency of local industry through economic earnings grew rapidly as a result of favorable integration at a subregional level in the Carib- world prices for the Region's major agricul- bean and in Central America have been ham- tural exports and significant increases in the pered in recent years by political and economic volume of nontraditional exports. Favorable disturbances. A few countries have financed terms of trade during this period and increased rapidly expanding public investments and medium-term and long-term capital inflows related imports by large external borrowing. strengthened the Region's capacity to import. In some countries, a highly skewed pattern of The increase in public debt service, the result income distribution persists, and many people of a growth in borrowing and a hardening of cannot afford the goods and services they re- terms, was matched by a rapid growth of quire to satisfy their basic needs. Most govern- exports, and international reserve holdings of ments, however, are determined to maintain, the monetary authorities increased fourfold. on a financially sound foundation, a fast rate As a result of the increase in petroleum of economic growth and substantial levels of prices in late 1973 and worldwide recession in investment in human capital. 1974 and 1975, most Latin American countries experienced sharp increases in the current Growth in the 1970s account deficits of their balance of payments. The rate of economic growth slowed in most From the late 1960s to 1973, the countries countries, and the average annual increase in of Latin America achieved high rates of growth real output declined to just over 4% during the of real output, averaging 7% annually, well period, 1974-75. However, Latin American above the historic average. Two interdepen- countries were able, for the most part, to avoid dent phenomena, increased investment and serious prolonged declines in growth by main- relaxation of foreign exchange constraints, were taining domestic demand and by borrowing instrumental in bringing this about. large amounts abroad, mostly on the Euro- The improved investment performance was currency market, to finance the needed high accompanied, for the most part, by an increase levels of imports. Nonetheless, a few countries

Lending to Borrowers in Latin America and the Caribbean, by Sectors (US$ millions. Fiscal years.) Annual Average 1971-75 1976 1977 1978 1979 1980 Agriculture and rural development $212.1 $ 224.5 $ 507.0 $ 655.5 $ 405.0 $ 408.0 Development finance companies 35.2 195.0 183.0 230.0 245.0 269.0 Education 32.4 35.0 59.0 33.7 52.5 32.0 Energy Oil, gas, and coal - - - - - 78.5 Power 152.4 218.0 351.0 398.0 346.0 708.0 Industry 91.4 183.0 241.0 85.0 185.5 87.5 Nonproject 12.0 4.0 26.5 30.0 156.5 80.0 Population, health, and nutrition 0.6 25.8 5.0 25.0 - - Small-scale enterprises 1.1 85.0 15.0 47.0 7.0 202.0 Technical assistance 2.7 - - 11.0 - - Telecommunications 35.1 - 60.0 33.6 - 44.0 Tourism 8.6 - 42.0 50.0 52.5 - Transportation 236.5 404.5 329.5 199.0 468.5 371.0 Urbanization 9.8 21.6 12.7 162.8 176.5 88.0 Water supply and sewerage 66.8 52.0 61.5 149.5 169.8 316.0 Total $896.8 $1,448.4 $1,893.2 $2,110.1 $2,264.8 $2,684.0 Of which: Bank $861.4 $1,408.9 $1,868.2 $2,054.5 $2,232.8 $2,595.0 IDA $ 35.3 $ 39.5 $ 25.0 $ 55.6 $ 32.0 $ 89.0 Details may not add to totals because of rounding. Latin America and the Caribbean 61

A Brazilian farmer, a settler in theAltoTuriareaofMaranhdo 1.state, harvests rice from his land. The area was opened up through a colonization project that was supported by a $6.7 million Bank loan.

suffered declines in economic growth as a to meet their growing debt service without result of interal causes or the sharp deteriora- excessive hardship. tion of the extemal trade situation. During the last three years, the countries of The current account deficit for the Region Latin America have continued the process of as a whole increased from $2,900 million in adjustment to, and recover-y from, the adverse 1973 to $7,000 million in 1974 and $14,000 developments of the mid-1970s. Real growth million in 1975; it then fell to $10,000 mil- in gross domestic product (GDP) averaged lion in 1976. Initially, the increase in the deficit almost 6% during the period, 1977-79. Al- was the result of a surge of import payments though this rate was below that achieved dur- associated with sustained economic growth ing the early 1970s, signs of more vigorous throughout most of the Region, as well as by growth and improved financial and economic the increase in petroleum prices. A sharp dete- management were apparent in most countries. rioration in the Region's terms of trade during During 1979, rapid economic growth in the the period, 1975-76, stemming from a fall in Region's three largest countries-Argentina, the world prices of sugar, cotton, wheat, fish- Brazil, and Mexico-and continued strong meal, beef, copper, and tin was only partially growth in Colombia, Chile, and Paraguay offset by a decline in the volume of imports. resulted in an increase in the Region's GDP The large deficits were, for the most part, of 6.5%. While the value of exports increased financed by increases in external borrowing more than imports, rapidly rising interest pay- that, though resulting in an increase in the ments on external debt and deteriorating terms debt service of many, made it possible to of trade for the nonpetroleum-exporting coun- cushion the shock of adverse external develop- tries resulted in large increases in the current ments. The countries that pursued a develop- account deficit in the balance of payments. ment strategy based on rapid export growth, While the 1979 current account deficit of such as Brazil and Mexico, gained considerable $20,000 million exceeded that of any previous access to world capital markets and were able year in nominal terms, it was lower in real 62 1971-1980-Regional Perspectives terms than the large deficit of 1975, and repre- nomic problems this growth has created. Man- sented a lower share of the Region's GDP aging urban growth has become one of the than in 1975. While the Region's external most pressing development issues of the pres- indebtedness has grown rapidly in the past ent time. In recent years, the World Bank has several years, it is still within manageable limits provided increased support to assist countries in most countries, given the substantial expan- throughout the Region in dealing with these sion of exports that has occurred. The Region's issues. On the bright side, however, agricul- international reserves have continued to rise; tural productivity has increased in many coun- nevertheless, the increased volume of external tries, and an increased surplus is now being borrowing and the somewhat harder terms of generated by the agriculture sector. such borrowing have placed added demands The economic growth that has taken place upon the management of external debt, includ- over the past several decades in Latin America ing the need for prompt adoption of adjust- appears to have benefited many segments of ment policies in several countries. In a few the population. While the major beneficiary of countries, the growth of external debt service industrialization and of an expansion of the has been unsustainably high. In these cases, organized service sector appears to have been however, further borrowing is being curbed, the growing middle class, many of the new and domestic adjustment measures are being entrants into this group have advanced from a introduced. lower-income category. Evidence suggests that there have also been significant gains in the Demographic and Social Trends welfare of the poorest segments of the population. Improvement of health services has A major development in Latin America dur- received greater recognition throughout the ing the past decade has been the slowing down Region as constituting an investment in human of the population growth rate of many coun- resources that contributes to productive capac- tries. In Colombia, Costa Rica, Mexico, and ity. As a consequence, life expectancy has Panama, for example, growth of population increased from 50 years in the 1950s to 63 has decelerated significantly. Declines in the years at present. The access to, and quality of, death rate, stemming from improved health education has also improved significantly. En- services, have been more than offset by a pro- rollment ratios have increased substantially at nounced drop in the crude birth rate. While all levels. it is still not clear why the birth rate has The successful experience of most coun- declined so rapidly, it appears that rising per tries in Latin America in adjusting to the capita incomes, rapid migration from rural changing world economy during the decade areas to cities, expanded economic opportuni- suggests that, despite a more uncertain external ties for women, and increased acceptance and environment in the years ahead, these countries effectiveness of family planning programs are will be able to continue to expand their econ- among the most important factors responsible. omies during the 1980s. Expansion will be The fact that, in a number of Latin American more difficult than in the past, however, espe- countries, a turning point has been reached cially for those countries that are substantial does not mean that population-related issues importers of oil and that have experienced will cease being of concern. As a result of deterioration in their balance of payments and past higher population growth and of the rapidly growing external debt. Their ability increasing participation rates for women, it is to adopt prudent policies, including measures expected that in the medium term, the labor to accelerate growth of exports further, con- force, and hence the need to create jobs, will serve energy, and, over the medium term, expand more rapidly than population. More- develop new sources of energy will determine over, in most countries, population growth is the degree of success of their development still high. Longer-term projections suggest that, efforts in the 1980s. Most countries in the even under optimistic assumptions about Region have a greater capacity to adjust to ad- future trends in fertility rates, the population verse external developments without prolonged of many countries in the Region will double or economic dislocations than at any other time triple before stabilizing. in the postwar period. Many countries now Another major trend that has occurred dur- have a diversified and relatively advanced ing the past decade is that Latin America has industrial base, and within their agricultural become an increasingly urban society. Policy sectors, a sizable and modern segment of com- makers in virtually every country have been mercial agriculture. Both are quite resilient to confronted with phenomenal growth of their external shocks. Large mineral, energy, and major urban centers and the social and eco- land resources remain untapped, and yet the Latin America and the Caribbean 63 necessary infrastructure for exploiting these in others, by cutting out certain projects. A resources is substantially in place. Perhaps of combination of new tax measures, expenditure greatest importance, human and institutional rationalization and control, and pricing poli- resources in both the public and private sec- cies was also used in some countries to tors are sufficiently advanced to cope reason- strengthen finances of the public sector. ably well with the diverse and complex set of Serious efforts have been made in a number issues and problems that accelerated develop- of the Region's countries to monitor and ment will entail. control external borrowing. While the feasibility of establishing control over private capital Challenges of the Future movements may vary from country to country, it became clear that an explicit policy regard- Despite the vulnerability of many countries ing public sector external borrowing was in the Region to adverse developments in the required. Where such external debt policies world economy, prospects for economic were introduced, control over public sector growth in the future will be determined, to a expenditures was enhanced, since many enter- considerable extent, by internal economic prises that normally escape budgetary control policies and the effectiveness with which each could be monitored through their larger proj- country manages its development program. ects that typically involve foreign financing. While there has been a wide range of expe- To suggest that national economic manage- rience among individual countries in Latin ment is the most important factor determining America, many nonoil-exporting countries, future growth does not imply that develop- such as Argentina, Brazil, Chile, Panama, and ments in the world economy will not be impor- Peru, have increased energy prices toward the tant for countries in the Region. Clearly, the new, higher world level. As a consequence, future trend of world petroleum prices and these countries have been successful in curbing the availability of medium-term and long-term growth of energy consumption and in accel- capital for development are critical determi- erating the development of energy sources, nants of growth for many countries. Equally including petroleum. Those countries that important for the progress of the Latin Ameri- have not been able to develop new sources of can and the Caribbean countries will be the energy are likely to face increasing pressure on resumption of economic growth in the indus- their balance of payments in the 1980s unless trialized nations. Shifts in comparative advan- they can expand their nontraditional exports tage and in the pattern of trade between Latin at a pace sufficient to offset rising expenditures America and the industrialized countries have on imports of petroleum. But, expanding been accompanied by adjustments, often quite exports in a period of universal slow growth difficult, in the developed countries. Protec- will present a special challenge. For a number tionist pressures in the industrialized countries, of countries, it has become clear that the as a consequence, have increased somewhat in maintenance of high rates of growth of non- recent years, as manufactured exports from traditional exports over the medium term will developing countries penetrated markets in require an internationally competitive indus- Europe and North America. trial sector that can come about only through For Latin America, the problem of increased gradual trade liberalization and other struc- protection could become particularly acute, tural adjustments. The southern "cone" coun- since an increasing share of its expanded tries (Argentina, Chile, and Uruguay) have manufactured exports goes to the industrialized taken major strides toward opening up their countries. Throughout the Region, there is a economies and allowing market mechanisms to growing recognition that increasing regional operate with minimal interference. The results, cooperation to promote trade and capital flows so far, are encouraging. is an essential complement to good national A second area that received increasing atten- economic management since, in the absence tion during the adjustment period of the 1970s of such cooperation, the countries of Latin was fiscal and monetary reforms that, in some America will find it increasingly difficult to countries, had a significant impact on the reconcile balance of payments and external generation of increased savings in the public debt management with their growth objectives. and private sectors, and on a more efficient allocation of these savings to productive invest- The Caribbean Countries ment. In other countries, where it has not been possible to increase savings, investment plans During the decade of the seventies, most have been adjusted downward, in some in- of the countries of the Caribbean were beset stances, by extending the investment period, by severe economic disturbances, particularly 64 1971-1980-Regional Perspectives

Jamaica, Guyana, and Haiti (the poorest coun- grams that included renewing efforts to try in the hemisphere). While these disturbances strengthen public finances, aiming policies at were triggered by adverse developments in the limiting wage increases, tightening import re- world economy, the severity of them in the strictions, and relaxing price controls. These Caribbean was the consequence of deep-rooted programs, supported by resources from multi- structural characteristics common to most of lateral and bilateral lending institutions, were the economies of the region, which make them continued in 1979. particularly vulnerable to external disturb- While there has been some improvement in ances. In addition, late in the decade (the fall the external position of these countries, signifi- of 1979), the Dominican Republic, Dominica, cant sacrifices were required as real wages and Haiti were adversely affected by forces declined and unemployment continued at high entirely out of their control-hurricane David levels in most countries. The speed with which and tropical storm Frederic. full recovery can be accomplished over the Because of their small size and limited medium term will depend upon the continua- resource base, the countries of the Caribbean tion of appropriate stabilization measures, the rely heavily on imported goods paid for by the future trend in world petroleum prices, an ade- export of a few commodities, such as sugar quate level of external capital flows, the growth and bauxite, and earnings from tourism. Up to of export earnings, the strengthening of con- 1973, most of the more developed countries fidence in the private sector, and the ability of in the Caribbean experienced steady growth. governments to lessen the problems arising While the external resource gap of most coun- from shortages of skilled manpower. tries widened somewhat during this period, it In response to the serious economic prob- was more than covered by heavy inflows of lems prevailing throughout the Caribbean in foreign investment directed toward the devel- the period, 1976-77, the countries of the region opment of mineral resources and tourism. joined with donor countries and international Much of the industrial growth that took place development institutions in late 1977 to form during this period was concentrated in capital- the Caribbean Group for Cooperation in Eco- intensive activities and provided only limited nomic Development. This group, chaired by stimulus to indigenous enterprises. In the the World Bank, has met annually and has smaller states of the eastern Caribbean, such provided a framework by which external as Dominica, Grenada, St. Vincent, and An- donors can consider, in a coordinated way, tigua, the rate of economic growth was about their financial and technical assistance in sup- half that of the rest of the region, reflecting the port of appropriate and long-term economic more limited resource endowments of these programs undertaken by the countries of the islands. region. With the quadrupling of petroleum prices in An important achievement of the Caribbean late 1973 and worldwide recession in the Group, and one which, over the longer term, period, 1974-75, the entire region, with the may be of great significance for the future exception of Trinidad and Tobago, experi- development of the area, has been the strong enced major economic setbacks. Declining impetus given to regional cooperation in the world prices for the region's agricultural ex- areas of export promotion, private sector ports, increased import prices, and falling development, tourism, energy, agriculture, and tourism receipts (associated with recession in transportation. Regionwide cooperation in the industrialized countries) adversely affected tourism promotion and in installing the infra- the region's balance of payments, public structure needed to generate additional tourism finances, economic growth, and employment could make possible economies of scale and levels and, for the first time in many countries, could spread the high cost of tourism over produced inflation. The large current account many countries. Cooperation involving the deficits in their balance of payments, for the transport network is centered on improving most part, were financed out of international inter-island shipping to accelerate trade. To reserves and, for some countries, increased formulate long-term solutions to the severe external borrowing, primarily on commercial energy problem faced by most countries, terms. efforts are being made to create a comprehen- As the magnitude of the deterioration in the sive energy planning capability in the region, external position became apparent, it was to develop indigenous, unconventional energy belatedly realized in several countries that the sources, to initiate energy conservation pro- existing current account deficits were not sus- grams, and to prepare energy development tainable. During the course of 1977 and 1978, projects, including the exploration and devel- several countries introduced stabilization pro- opment of hydrocarbon resources. In the area Latin America and the Caribbean 65 of export promotion, a long-term regional coal development. As in fiscal 1979, loans in program is being prepared that is aimed at support of transportation activities made up an establishing regional services for governments important share of the total (14%). Projects and export industries. in the agriculture sector accounted for 15%. Industrial development and finance (including Bank and IDA Lending, Fiscal 1980 small-scale enterprises) showed a large increase, from $437.5 million in fiscal 1979 to Bank and IDA lending to the Region totaled $558.5 million, or 21% of the total, in fiscal $2,684 million in fiscal 1980, up from $2,265 1980. Most of the increase was due to the million provided in the previous fiscal year. Of rise in commitments for small-scale enterprise the total, $89 million was lent on IDA terms; development-from $7 million in fiscal 1979 these credits went to Honduras, Nicaragua, the to $202 million in fiscal 1980. Caribbean Development Bank (CDB), and Funds committed as co-financing for Bank- Bolivia. In fiscal 1980, 17 countries and the supported and IDA-supported projects reached CDB were recipients of the loans and credits $2,648 million in fiscal 1980, of which about approved. $1,150 million involved one large hydropower In response to the sharp rise in petroleum project. The average amount of co-financing prices, the Bank increased its lending for for the 16 co-financed projects, excluding the power; it is now the most important sector in large hydropower project, reached $93 million, the Region in terms of amounts lent, account- compared with $37 million in fiscal 1979.14 ing for 26% of the total. Lending in the energy sector is expected to grow rapidly as the Bank continues to expand its support of power and rtCo-financing data have been compiled from World Bank reportsof projects at the time of their Board approval begins to lend for petroleum, natural gas, and and do not reflect chaniges in amounts since that time. 66

Bank and IDA: Trends in Lending, by Sector (US$ millions. Fiscal years.) 1978 1979 1980 Bank IDA Total Bank IDA Total Bank IDA Total Agriculture and rural development 1,929.0 1,340.7 3,269.7 1,568.1 953.7 2,521.8 1,700.4 1,758.0 3,458.4 Development finance companies 782.5 18.4 800.9 559.0 32.2 591.2 743.0 74.5 817.5 Education 268.9 83.0 351.9 245.5 250.5 496.0 360.1 80.0 440.1 Energy Oil, gas, and coal - - - 82.4 30.0 112.4 328.5 128.5 457.0 Power 900.0 246.2 1,146.2 872.5 482.4 1,354.9 1,584.5 807.8 2,392.3 industry 360.0 27.0 387.0 721.0 121.5 842.5 393.5 29.0 422.5 Nonproject 80.0 75.0 155.0 301.5 105.0 406.5 280.0 242.5 522.5 Population, health, and nutrition 25.0 33.1 58.1 17.0 97.0 114.0 65.0 78.0 143.0 Small-scale enterprises 51.8 62.0 113.8 69.6 16.0 85.6 222.0 38.0 260.0 Technical assistance 11.0 9.3 20.3 - 29.7 29.7 - 13.0 13.0 Telecommunications 153.6 67.5 221.1 110.0 - 110.0 66.0 65.0 131.0 Tourism 50.0 - 50.0 66.7 46.5 113.2 - - - Transportation 918.1 174.8 1,092.9 1,430.9 473.5 1,904.4 1,205.0 239.5 1,444.5 Urbanization 222.4 146.2 368.6 297.5 12.0 309.5 249.8 99.0 348.8 Water supply and sewerage 345.4 29.8 375.2 647.3 371.5 1,018.8 446.4 184.7 631.1 Total 6,097.7 2,313.0 8,410.7 6,989.0 3,021.5 10,010.5 7,644.2 3,837.5 11,481.7

Details may not add to totals because of rounding.

Bank and IDA: Trends in Lending, by Sector (Percentages. Fiscal years.) 1978 1979 1980 Bank IDA Total Bank IDA Total Bank IDA Total Agriculture and rural development 32 58 39 22 32 25 22 46 30 Development finance companies 13 1 10 8 1 6 10 2 7 Education 4 4 4 4 8 5 5 2 4 Energy Oil, gas, and coal - - - I I 1 4 3 4 Power 15 11 14 13 16 14 21 21 21 Industry 6 1 5 10 4 9 5 1 4 Nonproject 1 3 2 4 3 4 4 6 5 Population, health, and nutrition - 1 1 - 3 1 - 2 1 Small-scale enterprises 1 3 1 1 1 1 3 1 2 Technical assistance - - - - I - - - Telecommunications 2 3 3 2 - I 1 2 1 Tourism I - - 1 2 1 - - - Transportation 15 8 13 21 16 19 16 6 13 Urbanization 4 6 4 4 - 3 3 3 3 Water supply and sewerage 6 1 4 9 12 10 6 5 5 Total 100 100 100 100 100 100 100 100

Details may not add to totals because of rounding. 67 Chapter Four Bank Policies and Activities, Fiscal 1980 Bank Policies

Structural Adjustment Lending that growth rates would be significantly lower than previously forecast. For calendar 1980, "The Committee welcomed the initiative for example, current account deficits, in con- taken by the Bank to provide assistance stant prices for this group of countries, are through structural adjustment lending on ap- expected to be roughly equal to those of 1975. propriate terms and conditions for developing Particularly hard hit are likely to be the low- countries which face difficult medium-term income countries, whose deficits as a share of prospects in their balance of payments. Mem- GNP are expected to equal almost their pre- bers recognized the contribution that could be vious high point of 3.8% reached in 1975. made through this type of nonproject and pro- Structural adjustment lending was seen as gram lending both to the rapid transfer of one response in an effort to help supplement, adequate resources and to the active pursuit with longer-term finance, the relatively short- of appropriate structural policies in the de- term finance available from commercial banks veloping couintries." and the resources available from the IMF in Development Committee communique order that the current account deficits of many April 24, 1980 developing countries do not become so large as to jeopardize seriously the implementation The issue of "structural adjustment" had of current investment programs and foreign come full circle, for it was the Development exchange-producing activities. Committee, 1 at its meeting held just before the But since many of the changes to which Annual Meetings of the World Bank and the developing countries need to adjust are per- International Monetary Fund in October 1979, manent, or are long term in character, finance that requested the Executive Directors of the to tide them over the expected deficits will, Bank to explore the criteria that could govern therefore, be no substitute for structural ad- program and sector loans in situations where justments in their economies. To achieve de- external disequilibria had not yet become sirable growth rates in the future, developing severe. countries will have to use available capital In his address to the Boards of Governors more efficiently, increase domestic savings, at that Annual Meeting, Robert S. McNamara, increase domestic production of energy and President of the World Bank, noted that he economize in its use, increase domestic output had earlier indicated 2 that he was prepared to of food, and increase and diversify their ex- recommend to the Bank's Executive Directors ports. Actions of this sort will require a consideration of requests for "structural ad- pattern of investment different from that in justment" assistance. In the spring of 1980, the past. discussion on the subject was held by the Directors. It was noted during the discussion that 'Formally, the Joint Ministerial the of Governors of the World BankCommittee and theof International the Boards recent changes in the international economy, Monetary Fund (IMF) on the Transfer of Real Resources to Devetoping countries. Established in October 1974, the including the increase in the price of petro- Committeeconsists of 20 members, generally Ministers of leum, continued high levels of inflation, Finance, appointed in and a years by one of the countriesturn for or successive groups of periodscountries of thattwo prolonged period of slow growth in the indus- designates a member of the Bank's or IMF's Board of Execuitive Directors as the case may be. The Commnitteeis trialized countries, were posing acute problems required to advise and reportto the Boards of Governors for many of the developing countries. of the Bank and the IMF on all aspects of the broad questions of the transfer of real resources to developing coun- In the short term, it was clear that the cur- tries, and to make suggestions for consideration by those rent account deficits of the petroleum-import- concerned regarding the implementation of its conclusions. rent acvelpingcountrdeficitsofwthepetrouldbeum'Address to the United Nations Conference on Trade and ing developing countries would be large, and Development(Manila, Philippines), May iO, 1979. 68 Bank Policies and Activities, Fiscal 1980

The Bank's lending for structural adjust- than on finding solutions to a country's under- ment is designed to assist in this difficult task. lying, long-term structural problems. Structural This type of nonproject lending has the specific adjustment lending, on the other hand, envis- objective of helping countries reduce their cur- ages the probability of multiyear programs rent account deficit to more manageable pro- being worked out and supported by a succes- portions over the medium term by supporting sion of loans. Because such lending will be programs of adjustment that encompass spe- developed with long-term objectives in mind, cific policy, industrial, and other changes it is expected to have more enduring effects designed to strengthen their balance of pay- than the crisis-oriented operations that were ments, while maintaining their growth and de- characteristic of the Bank's program lending velopmental momentum. in the past. Successful structural adjustment Such programs are intended to be flexible programs should have the added effect of en- and tailored to the needs of individual coun- couraging the provision of similar assistance tries; they could involve, for example: from other sources. -measures to adjust production to higher Although investment in long-term develop- energy prices; ment projects will continue to absorb the -emphasis on labor-intensive investments greatest part of the Bank's technical assistance that have a short gestation period and a sub- and lending resources, lending for structural stantial impact on employment; adjustment is expected to total between $600 -diversification of economies dependent on million and $800 million in fiscal 1981. exports of a few primary commodities, espe- It was agreed that the Executive Directors cially by promoting investment in the produc- would review, during the course of fiscal 1981, tion of nontraditional exports; the Bank's structural adjustment lending policy -enhancement of export competitiveness in in the light of initial assessments of loans economies that have suffered from excessive already approved and of possible changing protection of domestic industry, or redirection circumstances in the world economy. Descrip- of investment to domestic markets in the face tions of the structural adjustment loans ap- of changed cost structures or limited export proved during the year can be found on pages prospects; 111 and 112. -reassessment of the balance between public investment plans and expenditures for the Co-financing maintenance and operation of existing public The potential importance of the Bank's role assets; in coordinating and stimulating external capi- -reappraisal of policies for price and fiscal ta florobthfica and private ces, incentives and the efficient mobilization of do- tal flows, from both officeal and private sources, mestic resources; and to the developing countries has taken on a -institutional changes designed to improve new urgency in light of the current economic the efficiency of production and marketing environment. In this context, the Executive systems. Directors, during the past year, reviewed the systems. lending for structural. Bank's co-financing experience and gave direc- Although lending for structural adjustment tion to possible gay po gxadc-iacn is a new form of Bank assistance, such assis- ontieways to expand co-financing tance is a natural evolution in the traditional opportunities in the future. program assistance that has always been (and variesThe considerably,role played by depending the Bank inon co-financing the source continues to be) a part of the Bank's lending of co-financing. Official aid agencies, export operations. Previous program lending, how- credit institutions and private lenders are the ever, has generally been designed to meet the chred prinsipons,ean privat nder aredth immediate consequences of crises. Such lend- three pricipal sources of co-financig funds. ing has supported reconstruction activities, has Official agencies. Historically, bilateral and helped meet the need to supply industrial raw multilateral official aid agencies have been the materials and equipment to raise the use of major contributors to World Bank co-financ- existing industrial capacity, has aided econo- ing operations. During fiscal years 1973-79, mies adversely affected by a sudden fall in ex- for instance, agencies in the industrialized port earnings (where the economy is critically countries and petroleum-exporting nations dependent on a single export item), and has contributed around 60% of total funds pro- been used to bolster economies hit by a sharp vided through co-financing with the World deterioration in terms of trade as a result of a Bank and participated in 87% of the Bank's rapid rise in import prices. As a result, the pro- total co-financed operations. grams supported were concentrated on meas- Co-financing activities have promoted the ures dealing with immediate difficulties rather more effective use of development assistance Co-financing 69 by helping to channel aid funds to high-priority with the Bank playing a central role in the projects, particularly in the case of new agen- organization and supervision of international cies that lacked administrative capacity and competitive bidding. In light of the unwilling- were less familiar with the recipient countries. ness of some countries to participate in such Co-financing has also become an increasingly joint arrangements and the slowness of the active instrument of aid coordination, and thus procedure, this technique has not been used has improved the developmental impact of aid very often, and the most prevalent form of by avoiding fragmentation of assistance efforts export credit co-financing over the past decade and by saving managerial time in the borrow- has been "unorganized" parallel financing. ing countries. Under this method, the borrower assumes the In relative terms, the rate of expansion of responsibility for conducting a competitive co-financing with these official agencies may bidding process and may consider both the increase at a less rapid pace over the next few price and financing terms in making an award. years. Indications are that in the current period The Bank's role is normally limited to project of economic uncertainty, aggregate levels of appraisal and supervision and assisting the bor- development assistance from industrialized rower in contacting suppliers and export credit countries are not likely to rise in real terms. agencies. The main objective is to ensure that Assistance available for co-financing from borrowers can obtain necessary financing on member countries of the Organization of the best possible terms and the required goods Petroleum-Exporting Countries (OPEC) may and services at the lowest price. increase somewhat, but not as dramatically as While this method has been quite successful, in 1974-75, given the expanded capacity of the Bank is exploring whether it would be use- OPEC development institutions to identify, ful to play a more active role in helping to appraise, and supervise projects of their own. ensure that export credit finance would be Despite the apparent difficulty of increasing available in a timely and efficient manner the volume of co-financing activities with offi- through methods that call for working more cial aid agencies, the Bank will continue its closely with the export credit agencies. efforts to expand this source of co-financing, since it is of particular importance to those Private sources. Perhaps the most dramatic low-income countries that require assistance change in development finance over the past on concessionary terms. decade has been the expansion of commercial bank lending to developing countries. Net an- Export credit institutions. Export credits nual disbursements from this source grew have been an important source of co-financing, from an average of $4,000 million in the particularly for projects that require significant 1970-72 period to $10,000 million in 1974, imports of equipment in the industrial, pub- $20,000 million in 1978, and to an estimated lic utilities, and transportation sectors. This $23,000 million in 1979.3 source of co-financing expanded at a fast rate During this period of increased lending by during the mid-1970s, increasing from $91 commercial banks, only a small percentage in- million in fiscal 1973 to $621 million in the volved co-financing with the World Bank. following year. Since fiscal 1974, however, Nevertheless, the rate of growth in the volume export credit co-financing has declined slightly and number of co-financing operations has in real terms, even though total net disburse- been significant. From fiscal 1975-78, there ments of all export credits have increased were a total of 29 co-financed operations in- fourfold. Export credit co-financing reached a volving commercial banks and accounting for level of $879 million in fiscal 1975, declining about $900 million in private funds. In fiscal to $753 million in fiscal 1976; in fiscal years 1979, 16 co-financed operations with commer- 1977-80, it totaled $333 million, $481 million, cial banks provided $550 million in funds. In $652 million, and $2,191 million, respectively. these co-financing operations, the World Bank This inconsistent trend in amounts is attrib- and the commercial banks enter into separate uted, in large measure, to the nature and size loan agreements with the borrower. The com- of projects in any particular year that require mercial loan is on market terms (usually float- export financing. For example, the approxi- ing rate Eurodollars) and is often linked to the mate tripling of export credit co-financing in World Bank loan through an optional cross- fiscal 1980 was partially due to one very large default clause and a memorandum of agree- project in the power sector for which over ment signed by the World Bank and the agent $800 million in export credits are anticipated. In an earlier period, export credits were ISource: OECD. Amounts exclude guaranteed export occasionally co-financed on a "joint" basis, credits. 70 Bank Policies and Activities, Fiscal 1980 for the commercial banks. The memorandum Currency Pooling of agreement provides for the exchange of information on the project and the borrower's As reported in the World Bank's Annual ability to service the debt and spells out any Report for fiscal 1979 (pages 28-29), agree- administrative services (such as acting as "bill- ment was reached during that year on the ing agent") that the World Bank may agree adoption of a currency pooling scheme de- to perform for the commercial banks. signed to equalize exchange rate risks among Since commercial banks have been eager to the Bank's borrowers. The need to devise some lend to developing countries in the recent past system to achieve borrower equity arose from co-financing may not have had a dramatic the recent, signficant cbanges in exchange effect on the flow of funds or, except in a few rates among the various currencies that the instances, have significantly eased the terms on Bank borrows and lends. which funds were made available. However, It was also agreed, in fiscal 1979, to alter through co-financing arrangements with com- the Bank's disbursement procedures with de- mercial banks, the World Bank has introduced velopment finance companies (DFCs). Be- new lenders to borrowers in developing coun- cause many DFC subborrowers are unprotected tries, which, in the longer run, should help by a sort of "natural pooling" that shelters them secure continued access to international large and frequent Bank borrowers, they were capital markets. reluctant to take on an uncertain foreign exchange liability that may bear no relationship Over the next few years, developing coun- to the source of procurement or to their for- tries will have to increase their borrowing eign exchange earnings. To this end, it was from commercial banks during a period when decided that on an interim basis, disbursements economic and institutional factors, including to DFCs would be made half in US dollars, restrictive monetary policies and competition and half in one of three currencies-Deutsche from developed nations in the capital markets, mark, Swiss francs, and Japanese yen. The may tend to constrain commercial bank lend- interim measure was known as the "DFC Cur- ing. In light of these circumstances, co-financ- rency Basket Scheme." ing with the World Bank might enhance the In fiscal 1980, agreement was reached on prospects of developing countries obtainng the treatment of loans committed before the additional capital on reasonable terms. currency pool begins operation (July 1, 1980), Several opportunities for the World Bank to and on loans to DFCs. expand its role in co-financing with private As regards the former, it was decided that sources are being studied. Through the Bank's the undisbursed portions of existing loans new program for structural adjustment lend- could be included in the currency pool at the ing, commercial banks could gain confidence option of the borrower, but that portions al- that the recipient country is taking steps to ready disbursed would be excluded. The in- deal with balance of payment problems and clusion of the undisbursed portions extends the that the World Bank's analysis of those steps risk-spreading features of the currency pooling is positive and is supported by its own lending. more quickly to cover a greater volume of A World Bank structural adjustment loan, loans, and, therefore, increases the benefits of therefore, could well provide an impetus to the pooling system to borrowers. The disbursed stepped-up commercial bank lending. and outstanding portions of existing loans are In addition to the current technique of co- to be excluded from the pool so as to avoid the financing with commercial banks, the World complex problems of equity caused by the pos- Bank is considering ways that might enhance sibility of "negative selection." If borrowers the sale of participations to the private sector elected only to include disbursed portions with by designing particular loans to include a por- a mix likely to appreciate faster than the pool tion for resale on floating-rate terms. These mix, loans in the pool would be forced to bear sales would be without recourse to the World a larger foreign exchange risk. Bank. Similar techniques are now being used As far as loans to DFCs are concerned, it by the International Finance Corporation and was decided to include all new loans to DFCs the Inter-American Development Bank. Final- -both those that are protected against ex- ly, the Bank will also examine the feasibility change risk by governments and those that of assisting its higher-income borrowers in pass it through to subborrowers-in the pool. improving their access to the long-term, fixed- Though the interim arrangement may have rate international bond markets when market facilitated DFC operations pending imple- conditions indicate such an arrangement could mentation of the currency pooling system, it be attractive to private investors. resulted in unequal treatment of one category Education 71 of borrowers at the expense of other borrowers. piratory infections, measles, and malnutrition With the currency pooling system about to take a heavy toll among small children. begin operations, there was no need to con- -Temporary illness cuts the potential out- tinue the DFC Currency Basket Scheme. As put of workers by approximately 10%. with other borrowers, the DFCs will have the A major problem confronting the health option of transferring the undisbursed balances sector is one of access: some 80% of the on existing loans to the pool. world's poor are outside the scope of modern The currency pooling system for all new health care systems. A major allocation of loans is scheduled to go into operation for resources, the creation of new institutions, and loans negotiated after July 1, 1980. For those the strengthening of existing ones will have to undisbursed portions of outstanding loans, be undertaken if the United Nations' goal- it is envisaged that loan agreements will be adopted by all governments present at the amended during the following six months to International Conference on Primary Health permit their inclusion in thepool. Care at Alma Ata (USSR) (1978)-of providing access to basic health services to all by Health the year 2000 is to be met. Although village-level health workers at all After several years of informal activity in levels of skills require additional training and the health sector, the World Bank adopted, in supervision, although large amounts of money 1974, a formal health policy that limited its spent on health are not being deployed effec- operations in the sector to financing health tively, and despite serious problems of recruit- components of projects in other sectors. That ing staff and distributing supplies, the Bank's policy reflected the Bank's concern about the operational experience in the health sector feasibility of financing low-cost health care reveals that low-cost health technologies are systems and its uncertainty about its proper available for tackling common and serious role-how, in other words, its activities would health problems in developing countries, and relate to those of the World Health Organiza- local persons can be recruited and trained to tion (WHO). provide many of the important services. Although Bank lending was restricted to In July 1979, the Executive Directors re- health components, the Bank did become a viewed the Bank's experience in financing major lender in the sector. During the three- health components and approved a proposal year period, fiscal 1976-78, the Bank assisted to expand its program to provide, in addition health components in 70 projects in 44 coun- to financing such components, direct lending tries at a total cost of $405 million. Bank- for health projects. The Executive Directors financed health components in agriculture and agreed that emphasis should be placed on pro- rural development, education, and urban proj- viding primary level health care to treat com- ects totaled $115 million; 80% of these ex- mon, simple ailments; on preventive care in- penditures were in agriculture and rural stead of on curative medicine; on low-cost development projects. 14% in urban projects, technologies in place of sophisticated hospitals and 6% in education projects. In addition, and equipment; and on community participa- Bank-assisted projects in population, nutrition, tion in health care systems. and water supply and sanitation are also ex- To cope with the expanded activities, a new pected to improve health; together, they totaled Population, Health, and Nutrition Department an additional $3,400 million in the period, with was established in October 1979 in the World specific health components estimated at $290 Bank's Central Projects Staff by combining the million. staff working in the fields of health, nutrition, The Bank's increasing involvement, since and family planning. The Bank's new health 1974, in the health sector reflects its concern program will initially begin with one project in for alleviating poverty-the major cause of fiscal 1981 and expand to four or five projects disease in the developing world. An analysis annually by 1984. These projects will attempt of the health sector, published in the form of to improve access to acceptable health services, a Health Sector Policy Paper in February reduce significantly mortality and morbidity, 1980, underscores the gravity of the problem and strengthen the primary health care systems in the developing countries: of borrowing countries. -Life expectancy is two-thirds of the prevailing rate in the wealthier, developed countries. Education -The possibility of dying before the age of five is about 20 times greater than in the Since the 1950s, substantial progress has developed countries. Gastrointestinal and res- been made in providing basic education to 72 Bank Policies and Activities, Fiscal 1980 young children and adults living in developing where a foreign language is the medium of in- countries. struction-efforts are being made to reactivate Enrollment of children in schools has ex- national languages. panded at unprecedented rates at all levels of The World Bank supports the efforts of its education. There has been a significant decline member countries to achieve these objectives, in the proportion of adults who are illiterate- for studies have shown that investment in edu- from 44% in 1950 to 32% in 1975. Public ex- cation yields significant returns in areas that penditures on education, despite severe limita- go beyond the development of human re- tions on resources, have increased steadily in sources. Cross-sectoral analysis has revealed developing countries to equal roughly the that education in one form or another is essen- spending in industrialized countries-about tial to the meeting of basic needs such as 15% of national budgets. health, nutrition, and provision of safe drink- There have also been improvements in ing water. There seems, for instance, to be a extending educational institutions to areas pre- strong relation between education and life ex- viously unserved and in training managers, pectancy, and between education, particularly administrators, and teachers to run educational of women, and population growth rates. systems more effectively. A review of the Bank's policies on educa- Despite these impressive gains, the education, approved by the Executive Directors dur- tion sector faces many challenges in the 1980s. ing fiscal 1980, points to studies showing that -Over 250 million children of school-going economic returns on investment in education age and another 600 million adults in develop- seem, in most instances, to exceed returns on ing countries lack basic education. Most of veroping conts obtinvhigher rns than these comprise the poor, the rural dwellers, veloping countries obtain higher returns than these comprise t developed ones. The Executive Directors, in and women. considering a lending program for the period, -Inefficiencies in the flow of students fiscal 1979-83, emphasized that the Bank must through different grades keep the number of concentrate its activities in areas where it has students in school and the quality of education comparative advantage and endorsed increased they receive low. Less than half of the children allocation of funds for primary education and enrolled in primary school, for example, reach for training in work skills. Bank loans and IDA the fourth grade. credits that provide mostly physical facilities, -Because the education that is imparted is, equipment, and training will help to expand, in many cases, not in tune with the needs of the in the coming years, coverage of basic educa- labor market, a large percentage of those who tion to underserved areas and population leave school do not find appropriate em- groups. ployment. Since its first education project in Tunisia in These factors have stood in the way of fiscal 1962, the $2,600 million in assistance achieving the United Nations' goal of free from the Bank through fiscal 1979 created primary education to all; they have also made additional places for 1.8 million students to some people skeptical about the efficacy of study. During that period, some 10,000 insti- increasing public expenditures on education. tutions were constructed or improved with Public expectations of education have Bank support, substantial improvements were changed considerably during the past three de- made in the quality of teaching and training, cades: from raising political and social con- and in increasing the enrollment of disadvan- sciousness of the newly independent countries taged groups. in the 1950s to meeting the needs of the mod- The Executive Directors approved an in- ern sector in the 1960s. With the increasing crease in lending for education and training in concern about the relevance of education, ef- developing countries from $517 million in fis- forts were made in the 1970s to relate education cal 1978 to about $900 million annually for to work and to integrate education into all the five-year period, fiscal 1979-83. In allocat- development efforts. ing more funds for primary and nonformal These efforts are expected to continue education, for technical education at the sec- through the 1980s. In addition, the developing ondary level, and for project-related training, countries are expected to strive to make edu- five principles were laid down to guide Bank cation more relevant to their national life, lending: culture, and the needs of various population 1. Basic education should be provided for all groups. Some countries have already taken children and adults as soon as the available steps to use local languages in the early years resources and conditions permit. of formal schooling while, in some others- 2. Efforts should be made to provide educa- Education 73

Non formal village education in Upper Volta. Here, an instructor gives some finer points on the raising of cotton to a group of students near Bobo-Dioulasso. Such practical curriculum forms a part of the country's network of Rural Education Centers.

tional opportunities without distinction as to stitutional capacities for managing education sex, ethnic background, or social and economic systems. status. In promoting these principles, the Execu- 3. Education systems should try to improve tive Directors recognized that because the the flow of students through different grades problems and priorities of individual countries with a minimum of waste, and also improve differ, the Bank will have to be flexible and the quality of education, adjust to the needs of its borrowers. Member 4. Education should be related to work and governments will be closely involved in dis- the environment of the student. cussions with the Bank to establish priorities 5. To satisfy these objectives, developing in lending for education to the countries countries will need to build and maintain in- concerned. 74 Bank Policies and Activities, Fiscal 1980 Bank Activities

Economic Development Institute Small Enterprises focused on a subject of increasing interest to development planners: The Economic Development Institute (EDI) the role of small enterprises in promoting em- was established in 1955 to provide mid-career ployment, increasing income, and alleviating training in economic management techniques poverty. A course on problems of national eco- and policies for senior officials of developing nomic management, offered in Spanish, was countries. Since then, the scope of EDI train- specifically designed for participants from ing has expanded to cover problems and Latin America. Two courses, one on rural methods of identifying, preparing, appraising, development and the other on national eco- executing, and managing development proj- nomic management, and a two-week seminar ects. For the past decade, EDI has offered on development banking, were given in training not only to government officials con- French. For the third consecutive year, EDI cerned with development programs and gave a seminar on teaching methods and cur- projects, but also to those responsible for riculum design, and the United Nations Insti- training activities in developing countries; it tute for Training and Research joined EDI in has enlarged its training capability not only in conducting a bilingual (English/French) sem- English, but also in French and Spanish; and inar on economic development and its inter- it has greatly expanded its activities in devel- national setting. oping countries, mostly in collaboration with In Africa, EDI co-sponsored six regional other institutions. In fiscal 1970, EDI had and three national courses and seminars. Two only 149 participants in Washington courses regional courses on development banking, one and 93 participants in regional and national in French and the other in English, were given courses. In fiscal 1980, 10 courses and three in the Ivory Coast in cooperation with the seminars were offered to about 340 participants African Development Bank and the Associa- in Washington, assistance was given to 20 tion of African Development Finance Insti- regional and 19 national courses, and seminars tutions. Another regional course that took were offered to about 1,080 participants. place in the Ivory Coast was on urban projects, During the past year, EDI entered the sec- offered in French and co-sponsored by the ond year of its Five-Year Program for fiscal United Nations Centre for Human Settlements 1979-83, following its general guidelines to (Habitat). In Mali, a regional course on rural increase support for training institutions over- development was given in French, in coopera- seas, especially for francophone Africa, and tion with the Communaute Economique de to introduce and develop new courses and I'Afrique de l'Ouest and the Comit6 Permanent seminars. This main direction of growth Inter-Etats de Lutte contre la S6cheresse dans received the support and encouragement of le Sahel. With the Eastern and Southern Afri- the Bank's Executive Directors when they can Management Institute in Tanzania, EDI reviewed, in May, the EDI training program co-sponsored two regional courses, one on for fiscal 1981. In particular, the Directors transportation projects, and the other on agro- welcomed efforts to organize EDI seminars industrial projects. In Egypt, EDI, the Institute that foster a continuing dialogue on develop- of National Planning (INP), and the Trans- ment issues between senior, high-level policy port Authority of the Ministrv of Transport makers in developing countries and the Bank's co-sponsored a national transportation projects management staff. course and a national course for senior trans- The fiscal 1980 program in Washington fea- port officials; EDI and the INP also gave a tured three new courses. With a course on national course on industrial projects. Revenue-earning Public Enterprises, EDI At the request of the Association of Devel- made a modest beginning in providing training opment Financing Institutions in Asia and the in the management of public utilities, a field Pacific, EDI embarked on a program of train- in which the Bank has extensive experience. ing for development bank officials with the A course on Employment Promotion and assistance of the United Nations Development Technical Assistance 75

Programme, the United Nations Industrial identification and preparation, in Kuwait. EDI Development Organization, the German Foun- was also called upon to provide assistance to dation for International Development (DSE), a Bank transportation project in Argentina by and the local institutions where the courses advising on the curriculum and selection of were held-the Private Development Corpora- lecturers for the training component of the tion of the Philippines and the Management project. Development Institute of India. Other regional EDI made substantial progress in the pro- courses co-sponsored by EDI included one on duction and distribution of training materials transportation projects, with the Bangladesh and publications in fiscal 1980. A number of Institute of Development Studies; one on books, course notes, case studies, and exer- industrial projects, with the International cises were written and published. Work was Development Center of Japan; 4 and one on begun on several book-length manuscripts. livestock development projects, with the Uni- teaching modules, and audio-visual packages, versity of the Philippines at Los Banos, the and efforts were also made to increase the pro- Southeast Asian Regional Center for Graduate duction of materials in French and Spanish. Study and Research in Agriculture, and the Requests for EDI publications and training DSE. materials continued to increase, averaging A national seminar on development policy about 200 each month in fiscal 1980. EDI analysis and investment decisions was co-spon- supplied materials for courses in 30 countries sored by EDI, the Government of India, and and to more than 200 institutions in some 70 the Administrative Staff College in India; and countries. five national courses were given in Pakistan- As part of its effort to assist training insti- on agricultural projects; transportation project tutes and government departments responsible planning; education projects; railway project for training in developing countries, EDI con- planning; and investment analysis, decision tinued to invite selected officials to EDI to making, and implementation-in cooperation consult on the scope and form of courses, with the Planning Division and other govern- training materials, and pedagogical methods. mental departments. In addition, EDI gave two Sometimes they attended a course or part of a regional seminars, in Sri Lanka and Thailand, course. EDI also continued its efforts to eval- respectively, for senior officials in the trans- uate its impact on the training programs of portation sector. institutions with which it is cooperating, and In the Latin America and the Caribbean studies to this end were carried out in fiscal Region, EDI co-sponsored four regional 1980 in Bangladesh, Sudan, and Indonesia, courses: two, on industrial projects and devel- where cooperative programs with EDI have opment banking, with the Association of Ar- been in existence for a number of years. gentine Banks; and two others, on urban management and agro-industry, with the Technical Assistance Centro de Treinamento para o Desenvolvi- mento Econ6mico (Brazil). In cooperation Technical assistance, long an integral part with the Centro de Capacitacion y Desarrollo of World Bank operations, grew both in vol- in Mexico, EDI gave a national course on ume and scope in fiscal 1980, resulting in an investment planning, project identification, increase in committed and disbursed funds. and appraisal. Most technical assistance activities financed In 12 other regional and national courses or carried out by the Bank expanded. During and seminars, EDI helped plan and design the the year, the Bank extended four loans or curriculum, identify lecturers, and supply credits for a total of $13 million exclusively for training materials. These included courses on technical assistance, compared with five loans project management, in Ecuador; on rural for $29.7 million in fiscal 1979. Technical as- development and on industrial projects, in sistance components included in loans and Bangladesh; and on agriculture/agro-industry credits in all sectors rose to $534 million for and on general projects, in Indonesia. The 197 operations, compared with $359 million technical assistance provided by EDI included and 181 operations the previous year. If one teaching support of one to two weeks at a were to include supervision/implementation/ seminar on agricultuTal projects in the Ba- engineering services as part of the technical hamas and in the courses on project manage- assistance component, the allocation would ment in Tanzania; on rural development, in have totaled $807 million for fiscal 1980. India; on agricultural projects, in Egypt; on industrial projects, in Korea; on economic 4Established by the Government of Japan to provide train- development planning, in Chile; and on project ing for government officials of developing countries. 76 Bank Policies and Activities, Fiscal 1980

Projects with a substantial technical assist- to $455 million; total follow-up investment ance component included a $107 million loan from all sources came to $1,500 million. to Thailand for the construction of a natural Efforts to associate technical assistance gas pipeline (technical assistance: $12.4 mil- grants from bilateral sources with Bank lending lion), a $38 million loan to the Philippines continued to produce satisfactory results. The for fisheries training (technical assistance: Government of Finland provided assistance to $7.2 million), and a $210 million IDA credit Burma in conjunction with a forestry project to India for irrigation (technical assistance: assisted by the Bank and, in addition, was $49 million). considering assistance to Bank-identified for- In 1975, the Bank created a Project Prepa- estry projects in Sri Lanka and Mexico at the ration Facility (PPF) to help overcome weak- close of the fiscal year; Norway offered to nesses in borrowers' capacities to complete make grants in excess of $1 million available project preparation and to support the entities to borrowers to finance technical assistance responsible for preparing or carrying out proj- for project preparation and execution; Canada ects. Under the facility, the Bank advances agreed to provide up to $250,000 a project to funds to meet gaps in project preparation and help prepare a limited number of projects; for institution building. During the year, ad- and, in consultation with the Bank, Japan is vances from the PPF amounted to $20.4 making technical assistance arrangements in million, up from $12.6 million in fiscal 1979. support of Bank-assisted projects directly with In response to increased demand for PPF borrowing countries. assistance, the PPF's commitment authority Growing demand for planning assistance was increased by $20 million to $57.5 million has become a well-established trend. There is in fiscal 1980. considerable variety among the specific objec- The PPF is utilized in a variety of sectors. tives of planning projects, ranging from assist- For example, IDA advanced $120,000 to ance for the rehabilitation of a country's Upper Volta through the PPF to complete economy to improvement of project manage- preparation of a rice mill, conduct crop re- ment or development of planning capabilities search, and assess implementation efforts, in key ministries. Each project, however, has Some $200,000 was advanced to Niger to pre- as its overall goal, help to the country con- pare architectural designs and tender docu- cerned in becoming self-sufficient in trained ments for an education project. Benin received manpower and in developing efficient planning $320,000 through the PPF for assistance in mechanisms. Each project, therefore, empha- industrial development. sizes promotion of national expertise in planning and in implementation of plans. The number of new projects financed by the In fiscal 1980, while continuing to act as United Nations Development Programme executing agency for planning projects in nine (UNDP) for which the Bank acted as execut- countries in three different regions, and while ing agency rose to 44 and involved commit- completing projects in Uganda and Zaire, the ments of $20 million, compared with 37 pro- Bank undertook new projects in Indonesia, jects and $42.9 million worth of commitments Kenya, Korea, the Maldives, Sierra Leone, in the previous year. These projects included and Uganda. All but the project in Sierra a regional program in Central America and Leone are being executed by the Bank on Panama that has been designed to strengthen behalf of the UNDP; the one exception is a national capacity to develop and implement project financed by an IDA credit and supple- agricultural and rural development projects; mented by a grant from the UNDP. the UNDP and the International Fund for Ag- Training programs, carried out in associa- ricultural Development (IFAD) are co-financ- tion with planning assistance, were designed ing the program-the first instance of IFAD for about 200 individuals of more than 20 involvement in this kind of undertaking with nationalities. Under these programs, trainees the Bank. The new UNDP-financed projects improved their technical and managerial skills also include a novel arrangement between the at institutions in developed and developing Bank and the UNDP whereby the latter will countries. advance funds for consultant studies on an The Bank also provides an array of technical agricultural project in Algeria that the Bank is assistance outside of conventional Bank opera- appraising, with the understanding that the tions. Examples include short-term training; UNDP funds will be repaid out of the pro- secondment of advisers; transfers of technol- ceeds of the Bank loan. ogy, such as computer expertise; serving on UNDP-financed, Bank-executed projects led evaluation and monitoring panels; and provid- to Bank lending in calendar 1979 amounting ing demographic, financial, and economic Interorganizational Cooperation 77 advice for project preparation. Reimbursable the current state of water supply and sanitation technical assistance to capital-surplus, oil- facilities in 113 countries. It helped to execute exporting countries of the Middle East is several interregional cooperative projects that detailed on page 57 of this Annual Report. were financed by the UNDP and bilateral donors and that were aimed at facilitating the Interorganizational Cooperation coordination of national water development plans. The staff also conducted workshops The Bank's cooperation with other organi- and seminars for national policy makers on the zations, within and outside the United Nations formulation of the Decade's programs. CP system, touches upon virtually every aspect of sector and project identification work included Bank activity. The character and scope of the preparation of comprehensive manpower some of the collaborative relationships are development programs in Western Africa, spelled out in formal agreements, as in the case sector studies in India, Nigeria, and other of the cooperative programs (CP) with the countries in Africa and Asia, and project prep- Food and Agriculture Organization of the aration in the Latin America and the Carib- United Nations (FAO), the United Nations bean Region. Education, Scientific, and Cultural Organiza- Staff of the CP with UNIDO carried out, or tion (Unesco), the World Health Organization participated in, 20 missions to 15 countries. (WHO), and the United Nations Industrial While the work of the program continued to Development Organization (UNIDO). More emphasize the development of artisanal activi- often, however, they evolve as frequent, infor- ties, small-scale enterprises, and local construc- mal consultations on country, sector, and tion industries, the program also examined, in project problems, and from joint missions and several countries, the growth prospects of agro- parallel development undertakings. industries, building materials industries, and The 16-year-old CP between the Bank and manufactures for export. CP staff joined Bank the FAO is the largest of the four. In fiscal missions in seven countries to help review 1980, the program fielded 178 agriculture and development prospects in these and other rural development missions in 40 countries. It industries. The program stepped up its efforts assisted countries in the preparation of about to promote the transfer of technology to low- one-third of the agriculture and rural develop- wage countries for selected labor-intensive ment projects approved for Bank financing production processes. during the year. A formal agreement also The 75% Bank share of the costs of the establishes the basis of the Bank's cooperation four CPs in fiscal 1980 came to $9.2 million, with the International Fund for Agricultural representing 105 professional staff-years. Development (IFAD). The Bank completed Among other agencies of the UN system, appraisal of six projects to be financed by relations with the International Labour Organi- IFAD and is now supervising them. A further sation (ILO) were of particular operational im- four appraisals have been initiated and an portance. ILO assisted several Bank-financed additional 10 are under consideration for future projects for labor-intensive road construction action. Eight Bank-assisted projects were co- in Botswana and Ethiopia, and provided tech- financed with IFAD during the year. nical assistance in project management and The CP between the Bank and Unesco small-scale industry in Egypt, and industrial staffed and carried out 63 missions in 27 estates in Kenya. ILO staff joined Bank mis- countries in connection with sector reviews and sions to Korea and Egypt. The Bank and project identification and preparation in the ILO collaborated on research on minimum education sector. Outside the program, Unesco standards of living, wage-employment trends, assisted in the appraisal and evaluation of employment, and training in Cameroon, mi- Bank-supported projects and provided assis- grants' profiles in Bangladesh, and the con- tance to Bank borrowers for project implemen- struction industry in Zambia. tation. Unesco collaborated with the Bank Cooperation was also active in the fields of in the design of several Bank-supported population, human settlements and nutrition, population and education projects. Unesco's energy, the environment, transportation, and contribution concerned curricula, instructional communications. The Bank worked with the materials, and teachers' education courses that UN Fund for Population Activities and the were a part of the projects. UN Children's Fund in developing and carry- The CP with WHO concentrated on prepa- ing out several population projects, and with ration for the International Drinking Water the Organisation for Economic Co-operation Supply and Sanitation Decade. CP staff com- and Development (OECD) in population pleted "rapid assessment" reports analyzing studies. Bank staff assisted the UN Population 78 Bank Policies and Activities, Fiscal 1980

Division in monitoring and appraising progress its Office of Environmental Affairs-calls for in the implementation of the 1974 World the institution of procedures to ensure that Population Plan of Action. Information on projects assisted by the agencies are ecologi- policies for national urban growth, self-help cally sound. Interagency consultations were housing, squatter settlement projects, training also held on ways to control desertification, on of urban projects managers, town planning, a Coordinated Programme of Action of the and stimulation of the informal sector subse- UN System for the Improvement of the Work- quent to urban renewal projects was exchanged ing Environment, on guidelines for industrial with the UN Centre for Human Settlements, pollution control, for the protection of wildlife the OECD, the ILO, and several major donor and marine ecology, and on the environmental countries. The Bank participated actively in problems of individual countries. the Nutrition Subcommittee of the UN Admini- The Bank sponsored or hosted interagency strative Committee on Coordination; the Bank coordination meetings on a variety of matters: had helped to organize the Subcommittee, on international procurement with the participa- which are represented 12 international and nine tion of regional development banks, export bilateral agencies. finance institutions, and various UN agencies; In the field of energy, the Bank organized a the promotion of joint ventures in develop- meeting among major bilateral aid agencies, ing countries, especially involving small and regional development banks, and several UN medium-sized enterprises, by bilateral aid agencies to exchange views about current and agencies, private organizations, and UNIDO; future plans in support of energy production. and on problems of highway maintenance that The meeting provided an opportunity for dis- have been encountered by bilateral and multi- cussion of the Bank's expanded program, lateral co-lenders. announced in 1979, for petroleum develop- The Bank continued its association, as fiscal ment. It reached a consensus on the need to agent and co-sponsor, with the UNDP and support exploration in developing countries WHO, in the Special Programme for Research for, and utilization of, energy resources-in- and Training in Tropical Diseases to support cluding renewable energy-and to strengthen research into new and improved methods of their energy planning and operational abilities. treatment and control of six major tropical The discussions were followed during the year diseases, and also continued its co-sponsor- by bilateral consultations between the Bank ship with the FAO, WHO, and the UNDP, of and other participants on specific aspects of the long-standing Onchocerciasis Control Pro- individual energy programs. Discussions were gram to combat riverblindness in Western also held with the UNDP on ways in which a Africa. proposed Energy Fund and the Bank program The Bank's contacts with nongovernmental might prove complementary. organizations (NGOs) engaged in develop- The Bank participated in consultations at ment assistance are still largely ad hoc. the OECD on transport research relevant to Cooperation with NGOs from developed the developing countries; at the Economic countries in project identification and imple- Commission for Africa on operational plans mentation is increasing, and during the year, for the Transport and Communications steps were taken to develop closer links with Decade in Africa; at the UN Conference on NGOs in developing countries. The Bank Trade and Development on the development invited several NGOs to acquaint Bank staff of port planning; at the International Tele- with their activities, and was host at two semi- communications Union on sector work and nars with major NGOs to review cooperation the provision of technical assistance; and with in the sectors of urban and rural development, International Civil Aviation Organization staff, education, health and nutrition, and small and at headquarters and in the field, on airport and artisanal enterprises; the objective of the semi- air navigation development. nars was to lav the basis for a more active As the culmination of consultations on interplay between the Bank and the NGOs in environmental policies and practices that were these sectors. initiated jointly by the Bank, the UN Environ- ment Programme, and the UNDP, nine devel- Cooperation in agricultural research. Al- opment assistance agencies have adopted a though agricultural production in the develop- "Declaration of Environmental Policies and ing countries continues to increase slowly, pop- Procedures Relating to Economic Develop- ulation expansion outstrips the increase in ment." The Declaration-which embodies many of them. The Bank joins with the FAO policies and practices consistent with those car- and the UNDP in sponsoring the Consultative ried out in the Bank since the establishment of Group on International Agricultural Research Interorganizational Cooperation 79

(CGIAR), organized in 1971 to bring an inter- Cooperation in aid coordination. At the national effort to bear on those critical tech- request of both donor and recipient govern- nological problems of food production in ments, the Bank has continued to take the lead developing countries that are not as yet ade- in organizing various aid coordination mecha- quately addressed by others. The Group is an nisms for a number of developing countries informal association whose members are coun- that receive assistance from bilateral and multi- tries, public and private foundations, and lateral sources. During the year, 11 aid coor- international and regional development insti- dinating groups held formal meetings that tutions. The membership also includes coun- were sponsored by the Bank. These were the tries elected to represent the developing regions country groups for Bangladesh, Colombia, of the world. In calendar 1980, the donor Egypt, Korea, Nepal, Pakistan, the Philippines, members will be making grants amounting to Sudan, Uganda, Zaire, and the Caribbean about $120 million to support a network of Group for Cooperation in Economic Develop- 13 international research institutions.5 ment. The Bank also participated in a meeting Research at the intemational centers is con- of the Inter-Governmental Group for Indo- centrated on those food crops and livestock nesia, chaired by the Netherlands, and the that are most important in the diets of people Turkey Consortium meeting, chaired by the living in developing countries. The work is Organisation for Economic Co-operation and organized into the conservation and utilization Development. of genetic resources, plant breeding programs, The many projects that the Bank and IDA research into farming and livestock produc- help to finance jointly or on a parallel basis tion systems, socioeconomic research, develop- with other national and multilateral organiza- ment of small-scale farm machinery, research tions is an indication of the close cooperation into animal diseases, and training. An activity that exists among the various development recently added to the CGIAR system will pro- assistance agencies. The numerous national vide technical assistance for the strengtm ening and multilateral organizations that joined the of national research programs Bank in helping to finance projects approved in of natonareearhpogrmsfiscal 1980 are noted in each project summary, The research program supported by the to be found on pages 97 through 118. Group continued to expand in fiscal 1980. The In May 1978, an agreement was signed by total amount expected to be contributed in the European Economic Community and its calendar year 1980 by the 29 contributing nine member countries and IDA establishing members of the Group will be 20% more than the Association as administrator of a "Special in 1979. The Bank's contributions during 1980 Action Account" to provide assistance to low- are expected to amount in total to about $12 income countries whose development prospects million. had been seriously reduced by external factors At their annual meeting in November 1979, and which faced problems of resource trans- the members of the Group agreed on a five- fers. Under this agreement, which became year indicative plan that would permit signifi- effective at the beginning of 1979, IDA was cant growth in the Group's program of research responsible for the commitment and disburse- and training by steadily increasing contribu- ment of funds totaling the equivalent of tions, in current terms, to a level of about $250 $429.95 million. Those funds were completely million in 1984. What began nearly 10 years committed in May 1980; 57 projects received ago as an unusual experiment in informal international cooperation has grown and has established itself as a significant and continuing part of the overall international development 'Centro Internacional de Argicultura Tropical (CIAT), effort. That effort was recognized in June 1980 Cali, Colombia; Centro Internacional de Majoramiento effot.ffot wshat reognzedin Jne 980 de Maiz y Trigo (CIMMYT), El Batdn, Mexico; the when the CGIAR was awarded the King International Institute of Tropical Agriculture (IITA), lbadan, Nigeria; the International Rice Research Institute Baudouin International Development Prize for (IRRI), Los Bafios, the Philippines; the International Livestock Center for Africa (ILCA), Addis Ababa, having made a unique and lasting contribution Ethiopia; the International Laboratory for Research on to development. The prize was shared with Animal Diseases (ILRAD), Nairobi, Kenya; the Inter- national Board for Plant Genetic Resources (IBPGR), Paolo Freire, the Brazilian educator and phi- Rome, Italy; the International Center for Agricultural losopher. In 1970, CIMMYT and IRRI jointly nonResearch and Aleppo,in the Syria.Dry Arteas the West (ICARDA), African Ric.eBeirut, Develop- Leba- received a Unesco science prize for their ment Association (WARDA), Monrovia, Liberia; Centro Internacional de la Papa (CIP), Lima, Peru; the Inter- development of high-yielding varieties of national Crops Research Institute for the Semi-Arid wheat and rice. In that same year, Norman Tropics (ICRISAT), Hyderabad,India; the International Food Policy Research institute (IFPRI), Washington, Borlaug, director of CIMMYT's Wheat Pro- DC, United States; and the International Service for National Agricultural Research (ISNAR), The Hague, gram., was awarded the Nobel Peace Prize, the Netherlands. 80 Bank Policies and Activities, Fiscal 1980

Co-financing' of Bank- and IDA-assisted Projects, by Region (US$ millions. Fiscal years.) 19772 19782 19792 19802

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 20 $ 325.1 14 $ 214.4 19 $ 514.4 15 $ 443.2 Western Africa 12 299.2 17 184.8 14 112.0 18 611.4 East Asia and Pacific 5 204.1 10 220.0 13 496.5 13 913.6 South Asia 7 176.8 5 144.1 13 423.1 13 375.3 Europe, Middle East, and North Africa 13 483.1 20 1,239.5 27 925.9 19 1,529.4 Latin America and the Caribbean 12 621.3 15 772.9 21 776.1 17 2,647.6 Total 69 $2,109.6 81 $2,778.7 107 $3,248.0 95 $6,520.5 As a % of Lending Program 30 30 34 33 43 32 38 57

'Includes co-financing from official and private sources, as well as suppliers' credits. 2 Figures have been compiled from World Bank Appraisal and President's Reports at the time of Board approval.

"Special Action Credits" in addition to Bank Bank's own research staff, usually in collabora- and IDA financing during the life of the tion with outside researchers. Except for such Account. collaborative projects, the Bank does not pro- On a regional basis, the Bank continued its vide funding to outside institutions or indi- active participation in the country reviews viduals for economic and social research. sponsored by the Permanent Executive Com- Early in fiscal 1980, the external general mittee of the Inter-American Economic and advisory panel on the Bank's economic and Social Council. It also maintained close work- social research, chaired by Sir Arthur Lewis, ing relationships with regional development presented its report to the Bank's management. banks and with the Commission of the Euro- The Bank's Executive Directors discussed the pean Communities, which helped assure the co- report in December 1979 and gave it broad ordination of development assistance activities. support. The panel judged the Bank's research to have been of high quality and endorsed the Economic Research and Studies general direction of the program. Among the report's main recommendations were to in- The World Bank devotes roughly $10 mil- crease collaboration with developing country lion a year, or 3% of its administrative budget, research institutions, to forge stronger links to economic and social research. Since the for- between the Bank's operational activities and mal inception of the research program in 1971, its research program, and to expand the Bank's about 105 research projects have been com- research effort, especially with respect to the pleted, while about the same number are in applications and dissemination of research. progress. Twenty-two new projects were started By the end of fiscal 1980, some steps had in fiscal 1980. The program of research is already been taken to implement the recom- shaped by the Bank's own needs as a lending mendations of the external panel's report, institution and as a source of policy advice to while others were still in a planning stage. A member governments, and by the needs of thrice-yearly news bulletin on Bank research member countries. The results of completed was launched to disseminate information to research projects appear in a variety of formats, operational staff within the Bank, policy including articles in professional journals, makers and researchers in member countries books published under World Bank auspices (especially in developing nations), and other or by independent publishers, and World Bank international institutions. A series of work- Staff Working Papers. The World Bank "Cata- shops was under way, in which research staff log," issued annually, provides detailed infor- communicated latest results and techniques in mation on publications issued by, or on behalf fields such as income distribution, public enter- of, the Bank. Research is undertaken by the prises, trade and industrialization, and labor Operations Evaluation 81 markets to their operational colleagues. To fur- distribution data. Even in countries with quite ther improve interaction between researchers advanced statistical systems, the evaluation of and operational staff in designing new research past development experience and the formula- ventures, a number of permanent Research tion of future policies to alleviate poverty are Steering Groups were created to articulate a handicapped by lack of knowledge about the long-range view of research needs in broad living standards of different socioeconomic areas such as agriculture and rural develop- groups in the population, of how these stand- ment, urban and regional issues, international ards have changed over time, and of how they economic questions, and industry. These are affected by public policies. groups are also responsible for evaluating com- The study ultimately seeks to develop a pleted research projects within their fields of system that can indicate, over time, which competence. groups are benefiting from the development One of the larger research projects recently process and which, if any, are being left out- completed formed part of the Bank's effort to side it. In collaboration with the UN Statis- find ways of providing services to the poor tical Office and national statistical offices, a that are cheap enough to be widely used. The relatively simple set of household surveys and research studied the technical and economic other instruments will be designed that can be feasibility of options for water supply and set within a country's national statistical frame- waste disposal and analyzed the economic, en- work, that responds to its particular policy vironmental, health, and sociological effects of needs, can be implemented, say, every five various levels of technologies for providing years, and whose results can be readily pro- water and disposing of, or reclaiming, wastes. cessed. Designing these instruments should help It also reviewed the scope for improving exist- make data on living standards more interna- ing intermediate technologies to make them tionally comparable, but, in the course of the more acceptable to consumers and to make study, primacy will be given to incorporating them more widely transferable. Field investiga- the particular data requirements of particular tions were made in 14 countries. The results of countries. Field work to test new concepts and the project are reported in three books: Appro- measures now being developed will begin in priate Sanitation Alternatives: A Technical and calendar 1981; the study should be completed Economic Appraisal; Appropriate Sanitation in fiscal 1983. Alternatives: A Field Manual; and Sanitation Other income distribution studies continued and Disease: Health Aspects of Excreta and during the year included two research projects Wastewater Management, all soon to be pub- (both of which are nearing completion) that lished. The design of the project emphasized are evaluating data on income distribution in the participation of nationals of developing Latin America and Asia and a household in- countries; such participation has facilitated the come and expenditure study based on sample subsequent transfer of knowledge and tech- surveys in Mexico. One project on income niques. Apart from presentations of the re- distribution was initiated: a study of real in- search results at seminars and conferences, come and welfare of selected socioeconomic workshops have been held for national and groups in Colombia (1964-78). local government officials in developing countries. Follow-up work is now in progress to Operations Evaluation help develop low-cost water and sanitation programs in 12 countries, with funding from The World Bank system for evaluating its the United Nations Development Programme. operations continued to evolve in fiscal 1980, Other agencies are contributing to the imple- especially regarding the three major areas of mentation of the demonstration projects and development identified in earlier Annual Re- sanitation programs. ports of the Bank. Thus, in the past year that Partly in response to a recommendation by saw the total number of projects audited rise the external advisory panel, one of the major to more than 500 since the system began, bor- research projects begun in fiscal 1980 seeks rower input into the audit process increased to develop better methods of measuring levels significantly, and of the 109 completed projects of living and changes in those levels over subject to review in fiscal 1980, borrowers time. This project, the Living Standards Meas- commented on 90, or approximately 83% of urement Study (LSMS), builds on the Bank's the total. In order to encourage an even greater considerable experience in income distribution response, borrowers are being given more time research and the technical assistance that re- to comment on draft audits and, increasingly, search staff have given several developing draft documentation is being submitted to countries in the design and analysis of income them, in appropriate cases, in French or Span- 82 Bank Policies and Activities, Fiscal 1980 ish. In addition, the process of fitting the les- their completion to assess their overall impact, sons of past experience, as they emerge from the first of these having been undertaken by the evaluation process, into the design and OED in fiscal 1979. At the close of fiscal 1980, implementation of future Bank-supported op- five such reviews were either completed or erations has also developed with the continued were at an advanced stage of preparation. The exchange of views between officials of borrower value of these reviews lies in their taking countries and agencies, the Bank's operating account of the broad socioeconomic effects of staff, and the Operations Evaluation Depart- Bank-supported projects not apparent at the ment (OED). time of physical completion. Of the major areas of development in the The second major area of development of Bank's evaluation process, the involvement of the Bank's evaluation system-the process of borrowing countries in the evaluation process fitting these lessons of experience into opera- remains an important objective. The first proj- tional work, while continuing on a day-to-day ect completion reports prepared by borrowers, basis with the distribution and discussions of rather than Bank staff, were received during OED policy reviews and project audits-be- the year, and support has been given to coun- comes more sharply focused each year in tries seeking to develop their own evaluation preparatory work for the "Annual Review of procedures through, for instance, visits to the Project Performance Audit Results." At this Bank's headquarters by borrowers' staff con- time, extensive discussions are held between cerned with this activity and by OED staff to OED and the Bank's operations departments interested countries. Regional seminars on the concerning the conclusions emanating from subject are also being held, the third of the the Project Performance Audit Reports for the series having taken place in Kuala Lumpur at fiscal year. the end of May 1980 for senior officials of OED's fifth Annual Review, published in Asian countries. Moreover, monitoring and November 1979, was the third to be distrib- evaluation units continue to be introduced uted to the public. This Review covered the under Bank-assisted projects with the objec- experience of 98 operations supported by Bank tive of strengthening information systems and loans and IDA credits of approximately evaluating progress. The OED has also initi- $1,600 million. Including domestic financing, ated collaboration with other multilateral and the projects represented total investments in bilateral lending agencies in preparing project the order of $3,700 million. The report con- performance audit reports on co-financed cluded that, over all, the projects covered rep- projects. Possibilities for further collaboration resented a record of substantial achievement, among staff, especially on the more in-depth with nearly all being worthwhile investments impact evaluation studies, are being explored. and less than 3% of total investments yielding The evaluation system in the Bank itself re- results that appeared uncertain or unsatisfac- mains comprehensive in its coverage of com- tory at the time of audit. pleted projects. In fiscal 1980, 100 projects The Annual Review again noted the need were reviewed by the Operations Evaluation for understanding how local cultures affect Department. The computerized memory and organizational or economic behavior and em- search system, introduced to facilitate the re- phasized two aspects of the sectoral environ- trieval of the points of special interest emerg- ment within which projects function: the ing from individual project performance audit institutional setting and the borrower's sector reports, is being actively studied with the policies. It stressed the need for analyses of objective of making the wealth of accumulated both so that policy agreements may be reached material contained in the more than 500 audits between the borrower and the Bank to ensure more readily usable by Bank staff. Moreover, maximum benefits from Bank-supported proj- as in previous years, several major reviews ects and for developing longer-term institu- were completed in the fiscal year on various tional capability in the countries concerned. aspects of the Bank's operating procedures and It also observed that projects that came after operations. Together, these two prime aspects those covered in the Review showed evidence of OED's activities serve to assist in making of the Bank's ability to learn from experience. the Bank's work more effective. The Joint Audit Committee of the Board of While, in addition to policy reviews, the Executive Directors maintains continuing over- Bank's evaluation system focuses closely on sight of the OED work program and of its the audit of just-completed projects, an in- effectiveness. The conclusions of the Joint creasing amount of time is being devoted to a Audit Committee, the report of the Director- "second look" at completed projects. These General, Operations Evaluation, on the status involve a study of projects some years after of the Bank's evaluation system, and OED's Internal Autditing 83 annual review of project performance audit (c) reviewing the means of safeguarding Bank findings were all reviewed by the Executive assets from various types of losses; and (d) Directors. appraising the economy and efficiency with which resources are used. Internal Auditing IAD has no direct responsibility for developing and installing changes in systems, proce- Internal auditing is an independent appraisal dures, and internal controls that it would be function within the World Bank that examines expected to review in a subsequent audit. and evaluates Bank activities by providing The Department's work program covers a management with information about the ade- wide range of financial, administrative, and quacy and effectiveness of its overall system other Bank activities, including the supervisory of internal control and the quality of perform- aspects of project implementation. Some activ- ance in carrying out assigned responsibilities. ities are reviewed annually. while others are The Internal Auditing Department (TAD) reviewed biennially or every three years de- reports to the Vice President, Finance, and its pending on the materiality, volatility, or risk Director has direct access to the President aspects of the activity. and the Joint Audit Committee of the Bank's In recent years. IAD has extended its review Executive Directors at all times. IAD pro- function to include visits to selected countries vides department directors and other levels of to review the auditing standards applied by management with periodic, independent, and borrowers' external auditors, to review related objective audits, appraisals, analyses, recom- internal auditing and financial reporting stand- mendations, and information concerning the ards of the borrowers, and to recommend activities within their respective areas of re- appropriate technical assistance programs, sponsibility, including identifying possible where they might be needed, to upgrade ac- means of improving the efficiency and econ- counting and auditing practices. omy of operations and the use of resources. In carrying out each assignment, the Direc- In carrying out each operational audit, tor of the Department and members of his IAD's examination and evaluation of the ade- staff, as appropriate, have unrestricted access quacy and effectiveness of the related systems to all Bank records, documents, and personnel of internal control generally cover such aspects relevant to the activity under review. Where of internal control as: (a) reviewing the reli- relevant, IAD coordinates its annual work pro- ability and integrity of financial and operating gram with the Bank's external auditors. Its information and the means used to identify, working papers and reports are made available measure, classify, and report such informa- to the external auditors to assist them in plan- tion; (b) measuring the extent of compliance ning and conducting their examinations of the with governing agreements or instruments and annual financial statements of the Bank. Liai- related decisions, regulations, policies, plans, son is also maintained with the Joint Audit and procedures of the Board of Governors, Committee of the Executive Directors (see Executive Directors, and Bank management; page 96). 84 Chapter Five Borrowings and Finance

Income, Expenditures, and Reserves: Bank increase of $216 million over fiscal 1979. The The Bank's gross revenues, generated pri. Bank invests its liquid assets throughout the Theivfromnkts groas andvenues,tgents,atpri- year. In fiscal 1980, these investments yielded marily from its loans and investments, reached an average realized rate of return of 8.8%, and a total of $2,800 million in fiscal 1980, up generated $834 million of investment income. $375 million, or 15%, from last year. Gross genrate of returnsignificantlyhigherthan revenues have risen steadily during the last the 7.6% earned in fiscal 1979 bringing about decade as loan and investment balances have t 7.% eare in fiscal 979,tbriningaot continued to continuedexpand. to ~~amn12% noeincrease in the total amount of invest- The outstandingThe utstndinloailoan potfoloportfolio toaledtotaled mentAn income.additional $20 million of revenues was $26,675 million at the end of the fiscal year, an An from $20 incomes increase of $3,801 million over fiscal 1979. derived from other income The average rate of return on outstanding Expenditures of the Bank, which include loans, together with commitment charges on administrative expenses, interest, and issuance undisbursed loan balances, resulted in a yield costs on borrowings, totaled $2,212 million, up of 8.0% on the Bank's loan portfolio, produc- 10% from last year. This increase was well ing income of $1,945 million. This compares below the 15% increase in revenues during the with a rate of 7.8% and income of $1,669 mil- year. Costs associated with the Bank's in- iion in fiscal 1979. creased borrowings-interest of $ 1,975 million In July 1979, the Executive Directors ap- and bond issuance charges and other financial proved a lending rate policy that was put into expenses of $38 million-were by far the effect in January 1980, under which the rate major expenditures. Administrative costs to- would be determined on the basis of a general taled $198 million, up $26 million, after de- guideline rather than a strict formula, which ducting $140 million for the management fee had been in effect since July 1976. The guide- charged to the International Development As- line provides for a spread of ½/ of 1 above sociation, and $2.4 million for the service and the cost of borrowing, which is estimated for a support fee charged to the International Fi- 12-month period, using the actual cost of bor- nance Corporation. rowing for the past six months and the esti- The relatively higher rate of increase in mated costs for the succeeding six months. revenues, compared with expenditures during Under the new policy, the lending rate is ad- the year, boosted the Bank's fiscal 1980 net justed at least once a year (normally, at the income to a record high of S588 million, up middle of the fiscal year), and more often, if 44% from the $407 million earned last year. necessary. The lending rate was 7.9% during During fiscal 1980, $395 million was added the first quarter of fiscal 1980, rose to 7.95% to the General Reserve of the Bank, bringing in the second quarter, and was set at 8.25% the total to $2,600 million. Of the $407 million under the guidelines of the new policy during net income earned in fiscal 1979, $100 million the last half of the year. was allocated by the Board of Governors as a The Bank aims at maintaining a liquid posi- grant to IDA; the remaining $307 million was tion of marketable short-term assets equal to allocated to the General Reserve. 40% of estimated net cash requirements for The Bank does not trade in the currencies the subsequent three years. This liquidity pol- of its member countries for its own account. icy is designed to permit the Bank to meet Adjustments arising from translation of cur- adequately its net cash requirements without rencies to US dollar equivalents do not result the need to borrow new funds for prolonged in realized gains or losses as would occur with periods of time, thus making it independent of actual conversions into US dollars. Because of adverse conditions in the capital markets. At this, the General Reserve, rather than net in- June 30, 1980, liquid assets aggregated $9,966 come, is charged or credited annually with the million net of commitments for settlement, an amount of adjustment resulting from currency Borrowings: Bank 85 depreciations or appreciations. In fiscal 1980, Bank, which are its paid-in capital, accunru- the translation of currencies into US dollar lated earnings, and loan repayments. equivalents resulted in a credit to the General Total borrowings by the Bank in fiscal 1980 Reserve of $104 million, compared with $137 amounted to the equivalent of $5,173.4 mil- million credited in fiscal 1979. (A more de- lion. Of this amount, the equivalent of $646 tailed explanation is provided in the "Notes to million was advance borrowing for the Bank's Financial Statements" on page 160.) fiscal 1981 borrowing program. (Similarly, When gold was abolished in 1978 as a com- $796 million was borrowed at the end of fiscal mon denominator of the monetary system, the 1979 and credited in advance to the Bank's Bank began expressing its capital stock, for approved fiscal 1980 borrowing program of purposes of the financial statements, on the $5,300 million.) The advance borrowings for basis of the special drawing right (SDR). As a fiscal 1981 included two issues, totaling $500 result, the 1 % paid-in portion and the 9% por- million, of Eurodollar notes, marking the first tion of the capital stock released by certain time the World Bank had borrowed in the member countries for lending in United States Eurodollar bond market. dollars are revalued at the rate of exchange The World Bank sells its securities through of the US dollar to the SDR. The adjustment placement directly with governments, govern- resulting from this revaluation is also charged ment agencies, and central banks, and in the against or credited to the General Reserve. public markets where securities are offered to In fiscal 1980, these adjustments resulted in investors through investment banking firms, a debit to the General Reserve of $16 mil- merchant banks, or commercial banks. Of the lion, compared with $23 million charged in 42 borrowing operations that the Bank con- fiscal 1979. ducted during fiscal 1980, 31 were public issues or private placements throughout the Other Financial Operations: Bank world and accounted for $3,503.9 million, or 68% of total funds borrowed. The other 11 As of June 30, 1980, the Bank held $51,509 issues, totaling $1,652.9 million, or 32% of million worth of loans. This amount included the funds raised, were placed with official $6,739 million of loans approved, but which sources, namely, member governments of the had not yet become effective, and $460 million World Bank, central banks, and government of loans to the International Finance Cor- institutions. poration. Loans disbursed and outstanding The Bank's securities have been placed with totaled $26,675 million, including $398 million investors in more than 90 countries in Africa, to the IFC. Asia, Australia, Europe, the Middle East, and Disbursements on loans to countries totaled North and South America. This diversitv $4,363 million in fiscal 1980, up $761 million allows the Bank flexibility in selecting the mar- from last year. Since the Bank began opera- kets that will allow optimum borrowing conditions, it has disbursed a total of $32,998 mil- tions and lessens its dependence on any specific lion to its borrowing member countries. market. Repayments of principal on the Bank's loans The $5,173.4 million borrowed by the Bank amounted to $1.165 million in fiscal 1980. This in fiscal 1980 consisted of the following cur- included $188 million to investors who had rencies, and included the Bank's first public purchased portions of loans. Cumulative loan isssue of Austrian schilling bonds: repayments as of June 30. 1980, were $11,047 million: S8,299 million to the Bank and $2,748 Currency US dollar Currency amount equivalent million to pLirchasers of loans. borrowed (in millions) (in millions) Sales of participations in new loans and of Deutsche mark DM3,950 $2,183.2 maturities from the Bank's loan portfolio United States dollars $1,202.8 $1,202.8 amounted to $4 million in fiscal 1980, com- Swiss francs SwFt,60)0 $ 964.2 pared with $45 million in the previous year. Japanese yen yl75,000 $ 742.2 Aggregate loan sales to date total $2,980 Austrian schillings S1,000 $ 81.0 million. Of these borrowings, $3,560.8 million repre- Borrowings: Bank sented new funds, and $1,612.6 million represented refinancing of outstanding borrowings. Borrowings in international capital markets A total of $2,669. 1 million equlivalent of debt provide a major portion of the funds necessary matured during the year. Additional debt, for the continued growth of the World Bank's aggregating $121.9 million, was retired by lending operations and are supplemented by means of sinking fund and purchase fund the other principal financial resources of the operations. 86 Borrowings and Finance

Outstanding obligations of the Bank increased $3,388 million to $29,668 million as of WorldBank: Gross Borrowings,1971-80 June 30, 1980. These obligations were denomi- (US$millions. Fiscal years.) nated in 17 different currencies and were placed with investors, including central banks and government institutions, in more than 90 6,000 countries. A summary classification of out- 5,173 standing borrowings by principal source at 5,085 June 30, 1980, is as follows: Principal Percentage of amount total outstanding Country (US$ millions) amount Germany 8,223 27.7 sooo0 4,721 0 0900UnitedStates 5,844 19.7 5,i0 4,721lSwitzerland 4,730 15.9 Japan ~~4,173 14.1 OPEC ~~4,206 14.2 2,492 8.4 Total 29,668 100.0

4,000 3,811 3,636 Borrowing Costs: Bank The cost of total borrowings by the Bank in the fiscal year, weighted by amount and maturity, averaged 8.1%, compared with 6.5% in the previous year. The cost in fiscal 1980, weighted by amount only, was 8.2%. The average cost of all funds to the Bank, including paid-in capital and accumulated earnings, was 3,000 about 6.0%. The cost of the Bank's average outstanding borrowings was 7.3%. The cost of the Bank's average outstanding borrowings for each of the past six fiscal years is here summarized: 2,040 ~~~~~~~~~~~~~~~~~~~Principal 2,040 0 0 outstanding Cost

7,000 - l : Fiscalz: . year\ (US$ millions) (%) 1975 10,949 7.06 1976 13,482 7.32 1977 16,809 7.53 1978 20,948 7.45 1979 25,600 7.21 1980 27,644 7.28

1,ooo 00 \ i Capitalization The capital stock of the Bank and the subscriptions thereto of its members are expressed, under the Articles of Agreement, in terms of the United States dollar of the weight and fineness in effect on July 1, 1944 (1944 dollars). Until 1971, the current United States o0u O dollar> S had the same value as the 1944 dollar and the special drawing right (SDR), which was instituted in 1969. In 1972, the current dollar value of the 1944 dollar and the SDR _76 increased to $1.08571, and in 1973 to $1.20635, as the result of devaluations of the dollar. Until mid-1974, both the 1944 dollar and the SDR continued to be valued in gold and had the same gold value. Thus on July 1, 1974, the value of the SDR, expressed in terms World Bank Borrowings, Fiscal Year 1980 87

World Bank Borrowings, Fiscal Year 1980 (In millions.) Currency of US dollar Issue issue equivalents' Public Offerings Austria 8% 10-year bonds, due 1990 Sl,000.0 81.0 Germany, Federal Republic of 7.75 % 12-year bonds, due 1991 DM400.0 217.3 7.875% 10-year bonds, due 1990 DM250.0 145.3 10% six-year bonds, due 1986 DM150.0 77.2 10% 10-year bonds, due 1990 DM200.0 103.0 Japan 8.20% 15-year bonds, due 1985/94 Y30,000.0 128.2 Switzerland 4.375% 10-year bonds, due 1989 SwFI50.0 90.4 4.625% 12-year bonds, due 1991 SwF100.0 61.4 5.75% 10-year bonds, due 1990 SwF100.0 62.0 5.875% 15-year bonds, due 1995 SwF100.0* 61.3 Eurobond Market 10.25% seven-year notes, due 1987 $300.0* 300.0 9.75% five-year notes, due 1985 $200.0* 200.0 Total Public Offerings 1,527.1 Placements with Central Banks and Governments Germany, Federal Republic of 8% note, due 1984 DM250.0 136.9 8.60% note, due 1985 DM250.0 145.6 Japan 7.71% yen obligation, due 1986 Y30,000.0 132.5 8.84% yen obligation, due 1986 Y30,000.0 119.1 Other 7% note, due 1984 DM150.0 82.8 7 % five-year bonds, due 1984 DM100.0 55.2 7.25% five-year bonds, due 1985 SwF100.0 57.2 International 2 9.40% two-year bonds, due 1981 $350.0 350.0 12.65% two-year bonds, due 1982 $336.2 336.2 4% four-year notes, due 1983 SwF200.0 120.7 6% three-year notes, due 1983 SwF200.0 116.7 Total Placements with Central Banks and Governments 1,652.9 Other Germany, Federal Republic of 7.125% notes, due 1987 DM200.0 110.7 7% notes, due 1985 DM400.0 219.2 8.10% loan, due 1990/94 DM150.0 81.9 8% notes, due 1994 DM150.0 81.9 7.75% notes, due 1989 DM 50.0 27.3 8% loan, due 1999 DM100.0 54.6 8% notes, due 1994 DM200.0 110.8 7.875% notes, due 1990 DM100.0 58.1 8% loan, due 1995 DM250.0 138.5 8.40% loan, due 1992 DM100.0 58.2 8.40% loan,due 1992 DM100.0 58.2 9% notes, due 1988 DM250.0 135.7 Germany/Kuwait 8.50% notes, due 1988 DM150.0* 84.8 Japan 8.30% loan, due 2000 Y30,000.0 127.9 8.30% loan, due 1999 Y55,000.0 234.5 Switzerland 4.375% notes, due 1985 SwF200.0 121.5 4.50% loan, due 1985 SwF200.0 120.5 5.50% notes, due 1986 SwF150.0 95.3 7% notes, due 1986 SwF100.0 57.2 Total of Other Placements 1,976.8 Add: Interest Subsidy Fund 8.50% loan, due 1977/2001 16.6 Total Borrowings, Fiscal 1980 5,173.4

*These borrowings were made on June 1980, but will be credited to the World Bank's borrowing program for fiscal year 198 1. 'Based on official rates at the tine of borrowing. 2 These short-term bond issues were placed with central banks, government agencies, and with international organizations. 88 Borrowings and Finance of United States dollars, was $1.20635, which ther increase of approximately $4,000 million) was the equivalent of one 1944 dollar. and that authorizes each member to subscribe Since July 1, 1974, when a valuation method to 250 shares of this additional capital, none for the SDR that was based on a number of of which will be paid in. Subscriptions author- major currencies was adopted, the value of the ized by these resolutions will be accepted after SDR has fluctuated daily. The current dollar September 30, 1981. value of the 1944 dollar, on the other hand, was deemed to remain fixed at the rate estab- Finances: IDA lished by the US par value legislation of 1973. Since the effectiveness, on April 1, 1978, of The International Development Association the Second Amendment to the Articles of (IDA) held a total of $20,722 million in credits Agreement of the International Monetary on June 30, 1980, including $2,733 million ap- Fund (IMF), currencies no longer have par proved but not yet effective and $485 million values, and the basis for translating the 1944 from exchange adjustments. Of the $17,989 dollar into current United States dollars no million of effective credits, $6,951 million was longer exists. The Bank is examining the impli- undisbursed at the end of the year. cation of this change on the valuation of its Disbursements totaled $1,411 million in fis- capital stock and the impact it will have on cal 1980, compared with $1,222 million last its financial statements. year. As of June 30, 1980, IDA had disbursed For purposes of the financial statements, the a total of $11,198 million. Bank has expressed the value of its capital The total resources provided to IDA in- stock on the basis of the SDR in terms of creased $1,192 million in the period, primarily United States dollars as computed by the IMF from subscriptions and contributions to the on June 30, 1980 ($1.32438 per SDR). Fifth Replenishment, which aggregated $681 The Bank's subscribed capital was increased million. The value of resources provided by by SDR1,181.6 million in fiscal 1980, bring- members in prior fiscal years increased by ing the total of subscribed capital as of June $369 million. The World Bank granted $100 30, 1980 to SDR30,171.8 million. The in- million to IDA from its fiscal 1979 net income, creases in subscriptions during the year came of which $86 million was for the general pur- from the following countries: poses of the Association and $14 million was for grants by IDA for agricultural research and Egypt, Arab Republic of 22.9 million SDR onchocerciasis control. France 477.5 million SDR Other resources that became available to Fiji 3.6 million SDR IDA during the fiscal year totaled $56 mil- Finland 17.3 million SDR lion, and were derived from releases by Part II Japan 400.0 million SDR countries and cancellations of and repayments Korea, Republic of 8.7 million SDR on credits. For further information, see page New Zealand 4.0 million SDR 175, "Notes to Financial Statcments." Qatar 15.6 million SDR St. Lucia 2.9 million SDR Syrian Arab Republic 8.7 million SDR Foreign and International Bonds: United Arab Emirates 85.2 million SDR Calendar 1979 1 United States 135.2 million SDR Turbulent conditions prevailed in the bond markets during 1979. Against a background of On January 4, 1980, the Bank's Board of accelerating inflation in the United States and Governors adopted a resolution that increases otheraindustrialiountre and voate ex- the authorized capital stock of the Bank by other industrialized countries and volatile ex- 331,500 shares; this represents an increase of change rates, the markets attempted to adjust approximately $40,000 million. The resolution to risg interest straiens were further ex- provides that the paid-in portion of the shares acerbate inothe lteall wen theUned authorized to be subscribed under it will be acerbated in the late fall when the United 7.5%, compared with the 10% paid-in portion States froze all Iraecan assets in US banks. of existing capital stock. Subscribing members These stranns were reflected in increased cau- will be required to pay 0.75% of the subscription and some nervousness m the financial mar- tion price in gold or United States dollars and ket. There IS no evidence, however, of a lasting 6.75% in their respective currencies. The Governors also adopted a resolution that in- 'The terms "foreign" and "international" in this context creases the authorized capital stock by an refer to issues sold outside the country of the borrower: foreign, if sold in one national market, international, if in additional 33,500 shares (representing a fur- more than one. Foreign and International Bonds: Calendar 1979 89 impact. Yet, despite the problems that con- ratic. It fluctuated from a high of $1,988 mil- fronted the markets, total borrowing in foreign lion in June to a monthly low of $358 million and international bond markets only declined in November. Average initial offering yields marginally from $37,316 million in 1978 to on public dollar-denominated bonds by indus- $37,232 million in 1979. The markets proved trialized countries increased from 9.43% in remarkably resilient when confronted with the the first quarter of 1979 to 10.85% in the final worsening economic climate. quarter. Yet, despite the rise in bond yields, In national markets, the decline in borrow- the irnverse yield curve that developed in 1978 ing in the US and Japanese markets was par- continued to widen toward the end of 1979 as tially offset by an increase in borrowing in the the six-month London Interbank Offered Rate Swiss market. In the US market, a 17% drop (LIBOR) reached 14.44% in December. in borrowing recorded from 1977 to 1978 was This inverse yield curve discouraged the is- followed by a 28% decline from 1978 to 1979. suance of fixed-rate Eurodollar issues. Instead, Increasingly higher interest rates dissuaded borrowing activity shifted to the floating rate traditional borrowers, such as the World Bank, note (FRN) sector of the international mar- from tapping the US market. By the fourth ket. FRNs totaled $4,182 million in 1979, quarter of 1979, average initial offering yields compared with $2,603 million in 1978 and on public offerings by industrialized countries $1,840 million in 1977. The market's adapta- had increased by 278 basis points since the tion to rising dollar interest rates and volatile fourth quarter of 1977. It was, however, still conditions through FRNs is seen by the high possible to raise large amounts through a issuing volume of FRNs and the flexibility single issue in the US market. The average size used in determining floating interest rates. In of public offerings amounted to $150 million, an attempt to attract investors who were in- far exceeding the sum available in any other creasingly drawn to short-term time deposits, capital market. spreads once almost exclusively tied to the six- The sharpest contraction in national bond month LIBOR were linked to base rates such markets in 1979 occurred in the Japanese mar- as the three-month LIBOR and 10-year US ket, where total borrowing declined from Treasury bills. In addition, an attempted link- $4,686 million in 1978 to $3,055 million in age of the fixed and floating rate sectors of the 1979. Heavy borrowing by the Japanese gov- market was made through issuance of drop- ernment, coupled with fears by nonresident lock bonds-floating rate notes that are con- investors of exchange rate losses, limited mar- vertible into fixed rate bonds if the interest rate ket activity. In addition, interest rates climbed payable on the FRNs falls below a predeter- steadily throughout the year. The official dis- mined level during the life of the bonds. count rate increased from 3.50% in January Floating rate notes are also sometimes to 6.25 % in December. Average yields on pub- viewed as hybrid debt instruments, combining lic offerings by industrialized countries in- features of both Eurocurrency credits and creased over 100 basis points from 1978 to bonds. FRNs with fixed spreads tied to varia- 1979 to 7.43%. ble bank deposit rates are attractive to com- The Swiss market, unlike the US and Japa- mercial banks from the point of view of both nese markets, fared well during 1979. Issuing borrowers and lenders. As borrowers, banks activity amounted to $9,084 million, 22% have increasingly used FRNs to fund their above the $7,455 million raised in 1978 and Eurocurrency credit commitments. Sixty-four 83% above the $4,959 million secured in percent of FRNs issued last year, or $2,680 1977. Borrowers were attracted to the high million, were completed by deposit money liquidity and low interest rates present in the banks. Banks have also reportedly been heavy market. Private placements continued to com- investors in FRNs, since the interest rate struc- mand a dominant share of foreign issues, ture of the notes contributes to matching the accounting for 63% of foreign bonds. Con- banks' assets and liabilities. vertible issues, most of which were private The investor interest shown by commercial placements, continued to be popular borrow- banks in FRNs has also benefited developing ing vehicles, and totaled $1,729 million. country borrowers. Given their role as the tra- In the international market, borrowing in- ditional private lenders to developing country creased II % from $15,940 million in 1978 to borrowers, the banks have been receptive to $17,727 million in 1979, primarily through a FRNs issued by developing countries. This re- 38% growth in the US dollar sector of the ceptivity has provided developing country bor- market. Although dollar-denominated interna- rowers both an alternative to borrowing in the tional bonds remained the backbone of the syndicated loan market and an entrance into market in 1979, issuing volume was highly er- the international bond market, where the con- 90 Borrowings and Finance

Borrowing in International Capital Markets (US$ millions. Calendar years.) 1978 1979 1980' (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 22,400.1 31,343.5 53,743.6 24,045.1 18,807.2 42,852.3 12,653.9 10,376.0 23,029.9 Developing countries 6,090.9 38,247.3 44,338.2 4,014.1 42,356.7 46,370.8 1,407.7 14,506.5 15,914.2 Oil-exporting2 (61.6) (1,347.1) (1,408.7) (14.7) (799.0) (813.7) (-) (134.3) (134.3) High- and upper- middle income (3,709.1) (15,840.5) (19,549.6) (2,699.7) (19,231.4) (21,931.1) (916.7) (6,908.4) (7,825.1) Intermediate- and lower-middle income (2,191.0) (19,162.6) (21,353.6) (1,229.0) (20,943.0) (22,172.0) (431.0) (6,420.5) (6,851.5) Low-income (129.2) (1,897.1) (2,026.3) (70.7) (1,383.3) (1,454.0) (60.0) (1,043.3) (1,103.3) Centrally planned countries and organizations 30.0 3,702.1 3,732.1 48.1 7,231.1 7,279.2 50.0 1,079.8 1,129.8 International organizations 8,424.6 181.7 8,606.3 8,647.1 310.0 8,957.1 3,697.6 490.0 4,187.6 Others 370.8 220.0 590.8 477.3 186.2 663.5 40.3 100.0 140.3 Total 37,316.4 73,694.6 111,011.0 37,231.7 68,891.2 106,122.9 17,849.5 26,552.3 44,401.8

IFirst six months only. 2Oil-exporting countries include the following capital-surplus countries: Kuwait, Libya, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. P Preliminary.

servative attitude of traditional investors has of $6,091 million (16%) attained in 1978. been a handicap to the marketability of devel- This decline was especially pronounced in the oping country bonds. With private banks as fourth quarter, when developing countries ready and willing investors, developing coun- raised only $534 million, the lowest quarterly try borrowers were able to raise SI ,307 million amount obtained since the fourth quarter of through Eurodollar floating rate notes in 1979. 1976. Unlike the dollar sector of the international Borrowers from industrialized countries in- market, the Deutsche mark (DM) sector regis- creased their market share from 60% in 1978 tered a 29% decline in 1979, from $6,531 mil- to 65% in 1979. Eight countries comprised lion in 1978 to S4,654 million in 1979. This about 70% of the total borrowing. Canadian decline may have been partially offset bv a re- and Japanese borrowers were the most active, ported increase inSchuldscheindarlehen,which with borrowings of $4,123 million and $3,866 are fixed-rate bank loans. It is difficult to judge million, respectively. this activity, however, as comprehensive sta- Canadians maintained their traditional dom- tistics on Schuldscheindarlehen are not always inance in the US market, with total borrowing available. DM-denominated bonds continued of $2,060 million, although this was the low- to carry fixed interest rates. Yields in both est amount raised by them in that market since the primary and secondary markets climbed 1974. Almost half of all their borrowing was throughout 1979, with initial offering yields completed in the first quarter of 1979, mainly on public issues by industrialized countries ris- through the US market. In the international ing to 7.78% by the fourth quarter. As in the market, the Canadians reopened the Canadian dollar sector, yield increases were not large dollar sector in April, with I I issues in eight enough to prevent an inverse yield curve from weeks totaling $391 million. Secondary market developing in the latter half of 1979, with six- difficulties in placing these securities caused month LIBOR in the 8.00% to 9.00% range. issuing activity to slow markedly by the end of The volatile market conditions in 1979 fa- the second quarter. Only two Canadian dollar vored the more traditional borrowers from issues were made during the balance of the year. industrialized countries and international or- During 1979, Japanese borrowers continued ganizations, who raised $24,045 million (65%) to raise large amounts in the Swiss market and and $8,647 million (23% ), respectively. Bor- in the DM sector of the international market. rowing by developing countries in 1979 de- As in 1978, the Swiss issues were generally clined for the first time since 1975, falling to private placements of between SwF25 million $4,014 million (11%) after the record level to SwF80 million with original maturities of Syndicated Eurocurrency Credits: Calendar 1979 91 five to seven years. A large share of the Japa- banks, monetary authorities, and governments. nese issues, both in the Swiss and international The European Investment Bank was also an markets, was convertible into common stocks active market participant in 1979, with bor- of the borrower. rowing of $2,121 million. A notable event during 1979 was US cor- Borrowers unallocated by country raised porate borrowings, which totaled $2,728 mil- $477 million during 1979. Eurofima, the Euro- lion. US borrowers were particularly active in pean railway company, was the largest bor- the dollar sector of the international market in rower, with $335 million obtained in the February and June, when they raised $450 Austrian, Luxembourg, Swiss, and intema- million and $645 million. Debt instruments is- tional markets. sued by the US Treasury (not included in World Bank bond statistics) totaled $3,681 million and were secured in the German and Syndicated Eurocuffency Credits: Swiss capital markets. Calendar 1979 The 34% decline in borrowing by developing countries in 1979 is in dramatic contrast to During 1979, much attention was focused the 1975-78 period when annual borrowing inon the Eurocurrency credit market. The large creases ranged from 28% to 104%. The drop volume of lending, which took a major leap in in borrowing in 1979 sharply differs from the 1978 ($73,724 million compared with $34,185 Eurocurrency syndicated loan market, where million in 1977), continued at close to the developing country borrowers obtained same level in 1979 ($68,891 million). As had $42,357 million, or 62% of all loans. The de- been evidenced since 1977, most major com- cline in the bond markets was particularly mercial banks, faced with positions of high strong in the Japanese market, where develop- liquidity due to low domestic corporate de- ing country issues fell from $1,328 million in mand in the industrialized countries, turned 1978 to $733 million in 1979. The reduced to the Eurocurrency credit market to lend their borrowing by developing countries in 1979 was excess funds. As a result, the competition for apparent in both the number of countries tap- Eurocurrency loan business drove terms to ping the markets and in the amounts raised by levels most favorable to the borrowers. the most active borrowers. Only 21 developing Of the total amount raised during 1979, countries raised funds in 1979, compared with developing countries accounted for $42,357 27 countries in 1978. During both 1978 and million (61% ), an 11% increase over the pre- 1979, roughly half of all developing country vious year's total of $38,276 million (52%). borrowing was completed by four countries. The traditional developing country borrowers The largest amounts raised in 1979 were ob- in the Eurocurrency credit market-Algeria, tained by Brazil ($736 million), Spain ($481 Argentina, Brazil, the Republic of Korea, million), Israel ($437 million), and Argentina Mexico, the Philippines, Spain, and Venezuela ($417 million); in 1978, the largest amounts -continued to remain active. Together, these were secured by Brazil ($936 million), Algeria countries accounted for 66% ($28,158 mil- ($729 million), Venezuela ($690 million), and lion) of the total amount borrowed by the Mexico ($688 million.) developing countries. Terms secured on many An $8 million, 12-year issue by the Haitian of the loans to these borrowers showed a sig- borrower, Club Mediterrann&e Haiti, repre- nificant improvement over those obtained in sented the only new developing country to tap previous years. the bond markets in 1979. Guaranteed by the Several developing countries-Colombia, French parent company, this rather unusual Ecuador, Greece, Portugal, and Yugoslavia- issue included a special feature indexing the showed significant increases in borrowing. To- interest rate on the bonds to the company's gether, these five countries accounted for a business activity at its other Caribbean resorts. total of $5,092 million. Those countries re- Borrowers from centrally planned countries ported to have borrowed in the Eurocurrency raised a minimal sum of $48 million in 1979. credit market for the first time included: As in 1978, the only borrower was Poland's Ethiopia ($14 million), Lesotho ($10 mil- Bank Handlowy w Warszawie. lion), Paraguay ($7 million), Sri Lanka ($50 International organizations raised $8,647 million), and Tanzania ($12 million). Mem- million in 1979, 23% of total borrowing. As ber countries of the Organization of Petro- in previous years, the largest amount was ob- leum-Exporting Countries (OPEC)'2 showed tained by the World Bank ($4,341 million). Of this total, $1,530 million was secured Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuiwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emir- through "special" placements with central ates, and Venezuela. 92 Borrowings and Finance a 21% decrease in borrowing-from $10,523 agement group). As a result, many of the tra- million in 1978 to $8,365 million in 1979. ditional participating banks disappeared from Borrowing by industrialized countries to- the scene, leaving the largest commercial banks taled $18,807 million in 1979, a 40% decrease to provide the funds. from the $31,344 million raised last year. This As the year came to an end, the Eurocur- decrease was reportedly due to these coun- rency credit market was plagued by uncertain- tries turning away from the market in favor ties. On the one hand, hints of a shift from a of the traditional bond markets. The largest borrower's market to a lender's market were amounts were raised by borrowers from the rumored because of the implementation of the United States, Italy, and France. (It should be US Federal Reserve's credit-tightening poli- noted that many of the breakthroughs in the cies, the Japanese government's restraint on fall of spreads were first evidenced by loans its banks from participation in Euroloans, and to the industrialized countries. France and the controversy concerning the vulnerability Sweden are only two examples of countries of the Euromarkets in view of the US-Iranian that were the first to be able to secure previ- situation. On the other hand, with banks facing ously unobtainable spreads.) additional liquidity from OPEC deposits, many Borrowing by centrally planned countries market observers felt that the borrower's mar- and organizations nearly doubled between ket was likely to continue. 1978 and 1979, increasing from $3,702 mil- At the beginning of 1979, the interest rate lion to $7,231 million. This increase is ac- for six-month Eurodollar deposits, based on counted for by China, which made its debut prime banks' bid rates at near end-of-month, in the Eurocurrencv credit market in 1979. started at 10.56%. The rate fluctuated through- This first-time borrower raised a total of out the year, reaching a high of 15.31% in $2,995 million through 12 loans at very low October and then ending the year at 13.94% spreads. The high liquidity of banks enabled and 14.44% in November and December, other centrally planned countries, for example respectively. Poland and the German Democratic Repub- lic, to borrow actively and to achieve improved Oreign and Interna terms, as well. First Half, 1980 The year 1979 can be characterized as one of declining spreads and lengthening maturi- Dramatic swings in borrowing activity char- ties. Spreads between borrowers were no acterized foreign and international bond mar- longer an indication of their credit rating. In kets during the first half of 1980. Soaring general, most countries had little trouble nego- interest rates, coupled with the increase in the tiating loans at spreads of I % or below and six-month LIBOR for US dollars from 14.44% at maturities within the nine-year to 10-year in December 1979 to 19.56% in March 1980, range. Statistical Annex Table I0 indicates the deterred borrowers from raising funds in the extent to which many countries succeeded in bond markets. Borrowing during the first quar- negotiating the best terms the market had ter of 1980 totaled $6,469 million, the lowest to offer. amount recorded since the fourth quarter of As had been true in 1978, the favorable 1975. Borrowing activity increased sharply market conditions encouraged borrowers to during the second quarter of 1980; prelimi- refinance existing loans. Although refinancing nary estimates indicate a total of $11,380 mil- did not reach the $13,787 million achieved lion. Again, borrowing was strongly influenced during the previous year, 1979 figures show by trends in US dollar interest rates. The pre- that approximately $8,242 million was raised viously mentioned sharp increase in the six- for this purpose. Most of this amount, $5,630 month LIBOR for US dollars was reversed in fnillion, was accounted for by the developing April, with rates declining 587 basis points countries. from end-March to end-April. The declining The improved terms in 1979 reportedly put interest rates were immediately reflected in a strain on participating banks because of low borrowing activity in the Eurodollar sector of returns. It was not surprising that the syndica- the international market. Eurodollar issues for tion of a number of transactions was very slow. May and June totaled $4,611 million, equal to This situation was further complicated by the 44% of total Eurodollar bonds raised during economic and political events of the latter half 1979. This surge of activity caused total bor- of 1979, and, taken together, these factors were rowing during the first six months of 1980 to looked upon by market observers as the reason reach S17,850 million, which, on an annual for the increasing number of "ciub" loans basis, would suggest about a $1,000 million (Euroloans totally underwritten by the man- decline in borrowing from 1979 to 1980. How- Syndicated Eurocurrency Credits: First Half, 1980 93 ever, if borrowing continues at, or near, the tries were able to obtain $565 million through level recorded in the second quarter, total vol- 11 issues completed by borrowers from nine ume for 1980 could be substantially above the developing countries. A $30 million floating 1979 total. rate note by the State Bank of India repre- In the US market, foreign bonds totaled sented the first Indian borrowing in the bond $1,213 million during the first half of 1980. markets since 1973. Only three countries tapped the US market, International organizations raised $3,698 with Canadian borrowers being the most ac- million during the first six months of 1980. tive, raising over 70% of all funds. The Swiss Over half of this amount ($2,162 million) was market accounted for 46% ($3,351 million) obtained by the World Bank. A notable event of all foreign bonds issued during the first half was the first offering by the World Bank in of 1980. Borrowers continued to be attracted the dollar sector of the international market. to Swiss franc interest rates which, although The June offering totaled $500 million-$300 higher than in 1979, were still substantially million at 10.25% and $200 million at 9.75%, below rates for US dollars and Deutsche mark. with original maturities of seven and five years, The sharp contraction in the Japanese market, respectively. which began in 1979, continued during the first half of 1980, with foreign issues totaling $489 million, compared with $3,055 million Syndicated EurocurrencyCredits: during 1979 and $4,686 million in 1978. irst a, Deutsche mark-denominated bonds, both In the Eurocurrency credit market, the year foreign and international, totaled $3,052 mil- got off to a slow start, but borrowing activity lion during the first half of 1980, which, on picked up during the second quarter, bringing an annual basis, is only slightly below the the half-yearly total to $26,552 million. This is $6,526 million raised in 1979. Over 90% of less than the $29,063 million raised during the DM issues were made by international organ- first half of 1979. Decreases were evidenced izations and borrowers from industrialized in each of the categories of borrowing coun- countries. tries with the exception of the industrialized In the international bond market, US dol- countries, whose borrowing increased by 35% lar-denominated bonds accounted for over over the same period in 1979, from $7,690 two-thirds of total borrowing. However, the million to $10,376 million. monthly volume of dollar issues fluctuated The distribution of borrowing during the widely, from $332 million in February to first half of 1980 was as follows: developing $2,536 million in June. The fall in dollar in- countries-S14,507 million (54%); industrial- terest rates during the second quarter revived ized countries-$10,376 million (39%); investors' interest in fixed-rate dollar securities, centrally planned countries and organizations which accounted for three-quarters of all Euro- -$1,080 million (4%); international organi- dollar issues. As in 1979, developing country zations-$490 million (2%); and borrowers borrowers continued to raise most of their unallocated by country-$ 100 million (less dollar bonds (79%) through the floating rate than 1%). note sector of the market. Among the developing countries, the largest Activity in foreign and international bond amounts were raised by borrowers from Spain markets was dominated by borrowers from ($1,988 million), Mexico ($1,609 million), industrialized countries, who secured over Malaysia ($1,050 million), and Argentina 70% of total funds. US and Canadian bor- ($1,040 million). Among the industrialized rowers were the most active, raising $2,197 countries, large amounts were raised by bor- million and S1,960 million, respectively. US rowers from Italy ($2,588 million), Canada corporations, particularly active in the dollar ($1,730 million), Belgium ($1,200 million), sector of the international market, obtained and the United States ($1,021 million). 85% of their external borrowing from it. The cautious attitude of bankers, evidenced As in 1979, borrowing by developing coun- during the closing months of 1979, was re- tries continued to decline during the first half flected in the terms offered on newly negoti- of 1980. The Colombian Banco de Bogotd was ated credits in 1980. Maturities on loans to the only developing country borrower to tap most borrowers appeared to be shortening. In the bond markets during the first quarter of 1979, maturities over 10 years were not un- 1980, raising $25 million through a floating common, but in 1980, bankers, for the most rate note offering in the international market. part, were offering maturities in the eight-year Reflecting the general upswing in the market to nine-year range. Spreads, on the other hand, during the second quarter, developing coun- remained favorable on loans to prime borrow- 94 Borrowings and Finance ers, but were high for "risky" borrowers. This increase considerably as banks, which had return of the differentiation in terms according been restraining their lending during the first to credit rating is a change from the situation half of the year, feel pressured to lend in the during 1979, when most borrowers were able face of their mounting liquidity. The reemer- to obtain favorable terms on their loans. Mar- gence of the Japanese banks in the syndicated ket observers indicate that this differentiation credit market, although at a less aggressive in credit rating is likely to remain through- level than in previous years, should also have out 1980. an impact on the level of lending activity. It remains to be seen whether or not the The interest rate for six-month Eurodollar volume of activity in the Eurocurrency credit deposits during the first half of 1980 reached market will reach the level experienced in 1978 a high of 19.56% in March but declined in and 1979. Market observers have indicated the following months, reaching a low of 9.94% that activity in the second half of 1980 should in June. 95 Chapter Six Executive Directors

Executive Directors credits totaling $3,838 million. The Directors also approved Bank borrowings of $5,173 With the exception of certain powers specifi- million. cally reserved to them by the Articles of Agree- The Board of Governors approved the ment, the Governors have delegated their recommendations made in late fiscal 1979 by powers for the conduct of the general opera- the Executive Directors providing for an in- tion of the Bank to a Board of Executive crease in the aggregate amount of $44,000 Directors that performs its duties on a full-time million in the Bank's authorized capital stock basis at the Bank's headquarters. There are 20 that will enable Bank lending to continue to Executive Directors: as provided for in the grow, in real terms, through the middle of the Articles of Agreement, five are appointed by decade. In another major action affecting the the five members having the largest number of transfer of resources to the developing coun- shares, and the rest are elected by the other tries, the Executive Directors approved the members. The President of the Bank is Chair- arrangements for the Sixth Replenishment of man of the Board. the International Development Association and The Executive Directors fulfill dual respon- submitted them to the Governors of the As- sibilities. They represent their constituents' in- sociation, who approved them on March 26. terests and concerns to the Board and manage- The Sixth Replenishment provides for $12,000 ment when determining policy or considering million equivalent in additional funds to IDA individual projects and they represent the that will be used to assist prioritv development Bank's interests and concerns to the country or projects in the poorest developing countries, countries that appointed or elected them. The with commitment authority for the three-year Executive Directors, therefore, act as a two- period, July 1, 1980 to June 30, 1983. Impor- way channel of communication between the tant policy matters on which action was taken Bank and the member countries. Since the during the year included: lending for health, Bank operates on the basis of a philosophy of education, and structural adjustment, determi- consensus (formal votes are rare), this dual nation of the Bank's lending rate, the role is a demanding one, involving constant denomination of IDA credits in special draw- communication and consultations with governing rights, the arrangements for the general ments and careful preparation to reflect their currency pooling scheme, and ways in which views in Board discussions. to increase co-financing. Policy is decided by the Executive Directors The Executive Directors endorsed the within the framework of the Bank's Articles of Agreement. The Directors consider and decide rcmedaionsiof the external General Re- on the loan and credit proposals made by the search Advisory Panel, with particular refer- President. They are also responsible for presen- ence to the need to expand the Bank's research tation to the Board of Governors at its Annual effort, especially with respect to research Meeting of an audit of accounts, an adminis- oaplication and disseminathon both within and trative budget, and the Annual Report on the outside the Bank, and the need for greater operations and policies of the World Bank, and efforts to build up research capacity in develop- any other matter that, in their judgment, ing countries. requires submission to the Board of Governors. The Directors also submitted to the Board of Matters may be submitted to the Governors at Governors for its approval a statute establish- the Annual Meeting or at any time between ing a World Bank Administrative Tribunal, Annual Meetings. which will become effective on July 1, 1980, In fiscal 1980, the Executive Directors met to adjudicate staff grievances. on 54 occasions in formal session, during Major policy decisions that the Executive which they reviewed and approved 144 Bank Directors make annually include the allocation loans totaling $7,644 million and 103 IDA of the Bank's net income, the Bank's lending 96 Executive Directors

program, administrative budgets, staff com- shareholders in maintaining vigilance over the pensation, and the Bank's research program. soundness of the Bank's financial practices and During the year, they considered the fourth procedures. In pursuing its responsibilities dur- annual report of the Director-General, Opera- ing fiscal 1980, the Committee nominated a tions Evaluation, the fifth "Annual Review of firm of private, independent, internationally Project Performance Audit Results," and the established accountants to conduct the annual fiscal 1980-81 operations evaluation work plan. audits of the Bank, IDA, and IFC, discussed Other annual reports with which the Directors with them the scope of their examination, and dealt related to project implementation and reviewed with them the annual audited finan- supervision, the activities of the Joint Audit cial statements and the opinions thereon. In Committee, the Bank's financial statements, the addition, through meetings with the Bank's Economic Development Institute, and the Staff senior financial officers, the Committee sought Retirement Plan. to ensure that the Bank's financial affairs are Two papers-one on structural adjustment properly conducted. lending, the other on co-financing-plus a The Committee is also charged with the third, a joint Bank/Fund study, "Group of 24 responsibility of satisfying itself that the Bank's Program of Immediate Action-A Review of internal audit and operations evaluation are Some Recent Developments," were trans- adequate and efficient. It, therefore, reviewed mitted, at the direction of the Executive Direc- the work programs of the Internal Auditing tors, to the Development Committee for its and Operations Evaluation Departments, the April meeting in Hamburg, in which they work in progress, desirable standards, and pro- participated. The Development Committee cedures of reporting. It reviewed most papers welcomed the Bank's initiative to provide produced by the Operations Evaluation De- assistance through structural adjustment lend- partment and identified those giving rise to ing, urged that co-financing efforts be con- policy issues that may be considered by the tinued, and reviewed the current state of dis- Executive Directors. During the fiscal year, cussion relating to the Group of 24 Program the Committee also assisted the Board by of Immediate Action for International Mone- meeting informally to give further attention to tary Reform. Following the Hamburg meeting, certain policy issues identified by the Executive the Directors further discussed the Bank's Directors. Through a subcommittee, it gave proposed program of structural adjustment special attention to Project Performance Audit lending and endorsed the policy, while calling Reports to determine how well the Operations for a review of the program in fiscal 1981. Evaluation Department carries out its assess- With the publication of the Report of the ment of individual projects. Brandt Commission, North-South-A Program Of continuing concern to the Committee is for Survival, the Executive Directors also be- the adequacy of the flow of financial informa- gan consideration of those recommendations tion to the Executive Directors in order for the that related to the policies and operations of Board to discharge properly its responsibilities the Bank. with respect to the financial policies of the On May 15, the Executive Directors decided Bank. Accordingly, the system for providing that the Government of the People's Republic financial information to the Board is reviewed of China represented China in the Bank and periodically by the Committee. its affiliates. The Committee provides a continuing chan- A list of the Executive Directors and Alter- nel through which the internal and external nate Executive Directors, showing their voting auditors may communicate with the Executive powers and the countries they represent, with Directors should the need arise. It meets as fre- notations of changes since the last regular elec- quently as necessary, normally once a month. tion of Executive Directors, appears on page The Committee consists of six ExecutiveDirec- 197. tors, who are appointed by the Board for a Joint Audit Committee term of two years after each regular election of Executive Directors. Since December 1978, The Joint Audit Committee was established Earl G. Drake has served as Chairman of the in 1970, essentially to represent the Bank's Committee. 97 Projects Approved for Bank and IDA Assistance in Fiscal 1980, by Sector

Acronyms Used in This Section ADF-African Development Fund GTZ-German Technical Assistance AfDB-African Development Bank Corporation AFESD-Arab Fund for Economic and IDB-Inter-American Development Social Development Bank AsDB-Asian Development Bank IFAD-International Fund for BADEA-Arab Bank for Economic Agricultural Development Development in Africa IsDB-Islamic Development Bank BMZ-Ministry for Economic KFAED-Kuwait Fund for Arab Cooperation (Federal Republic of Economic Development Germany) KfW-Kreditanstalt fur Wiederaufbau CABEI-Central American Bank for NMDC-Netherlands Minister for Economic Integration Development Cooperation CCCE-Caisse Centrale de Cooperation NORAD-Norwegian Agency for Economique International Development CDB-Caribbean Development Bank ODA-Overseas Development CDC-Commonwealth Development Administration Corporation OECF-Overseas Economic CIDA-Canadian International Cooperation Fund Development Agency OPEC-Organization of Petroleum- DANIDA-Danish International Exporting Countries Development Agency SFD-Saudi Fund for Development EDF-European Development Fund SIDA-Swedish International EEC-European Economic Community Development Authority EIB-European Investment Bank UNDP-United Nations Development FAC-Fonds d'Aide et de Coop6ration Programme FAO-Food and Agriculture USAID-United States Agency for Organization of the United Nations Intemational Development

Agriculture and Rural Development BANGLADESH: IDA-$25 million. An increase in foodgrain production, higher farm ALGERIA: Bank-$ 8 million. Some 18,500 incomes, and better rural job opportunities are farm families and laborers will benefit from a expected to result from financing of permanent project that forms the first stage of an overall (appurtenant) structures and improvement of effort to rehabilitate irrigation infrastructure, earthworks to complement various earth- reclaim lands lost to salinity, and develop and works schemes constructed under the Food for extend irrigated agriculture in the Cheliff basin. Work Programme. Co-financing ($3 million) Total cost: $13.3 million. is being provided by CIDA. Total cost: $35 BANGLADESH: IDA-$37 million. About million. 430,000 rural households will have access to irrigation facilities through a project that pro- BANGLADESH: IDA-$25 million. A vides for 8,500 new low-lift pumps; the re- portion of the import requirements of fertilizer habilitation of 5,000 unserviceable pumps; the and fertilizer raw materials for fiscal year 1981 initiation of pump sales to farmers with the will be financed. The credit will assist in meet- provision of credit from commercial banks; ing farmers' demand for fertilizer and will con- tools, equipment, and transport vehicles for the tribute to the country's efforts to increase pro- Bangladesh Agricultural Development Corpo- duction of food and other agricultural products. ration; and a training program for pump me- BANGLADESH: IDA-$11 million. The chanics and operators. Total cost: $48 million. government's ongoing mangrove plantation 98 Projects Approved, Bank and IDA, by Sector program will be expanded in four coastal dis- ening veterinary field services. Co-financing is tricts to increase the production of fuelwood, being provided by the KfW ($8 million) and pulpwood, and sawlogs. About 4,000 landless the GTZ ($1 million). Total cost: $39.9 million. laborers will benefit directly from better em- COMOROS: IDA-$5.2 million. Coconut ployment opportunities and from the free use and copra production will be extended and im- of nonmarketable fuelwood. Total cost: $17.2 proved on three islands through rodent control million. measures, the creation of a copra processing BRAZIL: Bank-$63 million. A second and marketing service, the establishment of rural development project will benefit about seed gardens and nurseries, and technical assis- 30,000 small farmers and 1,100 nonfarm tance and training of agricultural institution enterprises in some of the poorest rural areas staff and farmers. Total cost: $5.7 million. of Minas Gerais state through increased rural DOMINICAN REPUBLIC: Bank-$35 investment credit, a strengthening of agricul- million. The operational efficiency and finan- tural services, technical assistance to small, cial status of the State Sugar Council will be nonfarm enterprises, and improved physical improved. The country will be able to sustain infrastructure and social services. Total cost: its current level of exports and meet the pro- $184.6 million. jected increase in domestic sugar consumption by rehabilitating six sugar mills, carrying out phase of a long-term program for the develop- irrigation and drainage studies, and rehabilitat- ment of two river valleys in the country's cen- ing about 540 kilometers of railway tracks. tral area includes the rehabilitation and con- Co-financing ($20 million) for the financial struction of existing and new irrigation sys- restructuring of the State Sugar Council is tems; onfarm development; agricultural exten- being provided by private commercial banks. sion; construction of a dam, a powerhouse, and Total cost: $70 million. other related facilities; and technical assistance. About 33,000 farm families will benefit. Co- EGYPT, ARAB REPUBLIC OF: IDA- financing is being provided by the KfW ($37.8 $45 million. Funds will be made available to million), the OECF ($15 million), and the Development Industrial Bank, the Princi- NORAD ($6.4 million). Total cost: $235 pal Bank for Development and Agricultural million. Credit, and Bank Misr for onlending to small BURMA: IDA-$35 million. Teak and subborrowers and others for the development other hardwood exports and the domestic of small and medium-sized agro-industries, for supply of sawn hardwood will be increased the construction of new municipal slaughter- future timber supplies will be augmented houses inpCairo andAlexandria, and forstudies through the establishment of teak plantations on the possible construction of new fruit and and large-scale trials of other species, and vegetable wholesale markets in the two cities. training and technical assistance will be pro- Total cost: $60.8 million. vided. Co-financing will be provided by the GHANA: IDA -$29.5 million. An esti- EEC Special Action Account ($8 million), Fin- mated 60,000 farm families will benefit from land ($1.4 million), and the UNDP ($200,000). an agricultural development project in the Total cost: $86.4 million. Volta region supporting improved extension CAMEROON: Bank-$16.5 million; IDA services, credit and training for farmers, the -$15 million. Depleted forest areas in the construction of 65 farm service centers, the sparsely populated Kribi region will be re- expansion of the Adidome Farm Institute, and placed through a project that comprises the the construction and improvement of access second phase of a plan for the development of and feeder roads. Co-financing ($12.5 million) an industrial rubber estate. The country's de- is being provided by IFAD. Total cost: $48.7 pendence on cocoa and coffee for export earn- million. ings will be reduced and additional full-time GUINEA: IDA-$10.4 million. A rice de- jobs will be provided. Co-financing is being velopment project will provide for the con- provided by the CDC ($25.7 million) and the struction of three research stations; consultant CCCE ($19 million). Total cost: $95 million. services and fellowship funds to the Ministry CAMEROON: IDA-$16 million. The of Agriculture; and a pilot project aimed at second phase of a plan to increase meat pro- developing technical improvements in cultiva- duction and raise the standard of living of tion practices that will benefit 2,700 farm livestock producers will be supported by pro- families and 12 cooperatives located in the viding credit to producers, financing the con- country's fertile Forest region. Co-financing tinued eradication of tsetse flies from grazing ($4.9 million) is being provided by the ADF. areas of the Adamaoua plateau, and strength- Total cost: $21 million. Agriculture and Rural Development 99

HONDURAS: Bank-$20 million; IDA- Orissa, together with necessary supporting $5 million. By providing a line of credit for in- facilities, will be provided. A program of re- vestments in crops, livestock, machinery, and search and training and a cashew industry slaughterhouses; through flood control and study are included. Total cost: $45.7 million. drainage works for banana and plantain de- INDIA: IDA-$20 million. Carp produc- velopment; and through a pilot reforestation tion will be increased in five states-West Ben- program, the incomes of about 12,800 people, gal, Bihar, Orissa, Madhya Pradesh, and Uttar mostly small farmers and their families, will Pradesh-through the construction of hatcher- be raised. Total cost: $38.5 million. ies, improvements to fish ponds, strengthen- INDIA: IDA-$250 million. A two-year ing of extension services, and the establish- program of lending by the Agricultural Refi- ment of training centers. The incomes of about nance and Development Corporation to farm- 100,000 fish-farm families will be raised, and ers will be financed. A training program for the the supply of high-quality protein to consumers staff of land development banks will be sup- will be increased. Total cost: $39.7 million. ported, and equipment to implement ground- INDIA: IDA-$18 million. Over a two- water resource evaluations provided. Co-fl- year period, some 500 public tubewells will be nancing ($150 million) is expected to be pro- constructed in 12 districts in Uttar Pradesh vided by other donors (KfW, ODA, USAID, state, bringing irrigation to 62,000 farm fami- CIDA). Total cost: $953 million. lies currently not served by irrigation systems. INDIA: IDA-$210 million. Some 120,000 An increase in agricultural production, as well farm families stand to benefit from a second as in farm employment opportunities, is ex- irrigation project in Maharashtra state that pected. The project will also demonstrate and aims to develop drought-prone rainfed areas test the merits of technical and organizational into irrigated lands by constructing five major improvements that could be extended to the irrigation schemes and rehabilitating two exist- state's entire tubewell program. Total cost: $36 ing ones. Employment opportunities will also million. be created for about 113,000 landless laborers INDIA: IDA-$ 10 million. About 2.5 mil- and 65,000 workers in marketing, transport, lion farmers living in Kerala state will benefit and processing. Total cost: $451 million. from a project that aims to increase production INDIA: IDA-$175 million. Some 136,000 and incomes through the reorganization and farm families stand to benefit from a Second strengthening of agricultural extension ser- Gujarat Irrigation Project that aims to help vices. Total cost: $15.3 million. complete three ongoing major irrigation INDONESIA: Bank-$116 million. Food schemes that are expected to increase the production will be increased by about 234,000 annual production of foodgrains by 200,000 tons a year and about 800,000 farm families tons and fruit by 185,000 tons. In addition, will benefit through improved irrigation, drain- jobs will be created for farmers, landless age, and flood protection systems. Total cost: laborers, and other nonfarm workers. Total $186.7 million. cost: $360 million. INDONESIA: Bank-$99 million. About INDIA: IDA-$54 million. Funds will be 12,000 smallholder families will benefit directly provided to expand production and improve from a project that will establish rubber trees quality of silk in Karnataka state. Raw silk and food crops on family-sized holdings in two production is expected to increase by about provinces of Sumatera and in south Kaliman- 1,600 tons a year, the quality of silk will be tan. In addition, two existing public sector upgraded, and about 180,000 work-years an- estates (rubber and oil palm) will be rehabili- nually will be created, primarily for the rural tated and expanded. Total cost: $152.5 million. population. Total cost: $95.1 million. INDONESIA: Bank-$35 million; IDA- INDIA: IDA-$37 million. Supplies of fuel- $30 million. By constructing research centers wood in Gujarat state will be increased by and providing technical assistance and train- establishing more than 100,000 hectares of for- ing for high-level staff, the country's agricul- est plantations, through reforestation and affor- tural research institutions will be expanded and estation measures, by expanding state-run strengthened and appropriate farming systems nurseries to provide planting stock, by pro- will be developed to help small farmers raisp moting fuelwood conservation measures, and their productivity and incomes. Total c by strengthening institutions. Total cost: $76 $101.5 million. million. INDONESIA: IDA-$45 million. Sc INDIA: IDA-$22 million. Help in financ- 8,500 farm families will benefit through ing a cashew production program in the states provision of an irrigation and drainage sy of Kerala, Karnataka, Andhra Pradesh, and covering 11,600 hectares in the Dumoga 100 Projects Approved, Bank and IDA, by Sector ley in north Sulawesi. Technical assistance will and FAC ($1.4 million). Total cost: $21.1 also be provided to the Directorate-General of million. Water Resources Development to strengthen KENYA: IDA-$46 million. About 38,000 and expand its planning, programming, project smallholders in 15 districts will benefit from preparation, and evaluation activities. Total a second integrated agricultural development cost: $71.1 million, project. The project components include live- INDONESIA: IDA-$45 million. About stock development, storage and marketing 38,500 hectares of smallholder rubber will be facilities, better extension services and train- planted and maintained; 8,000 hectares pre- ing, credit development, conservation mea- viously planted to rubber will be maintained; sures, provision of farm inputs, and improved nurseries will be developed; and access roads water supplies and rural roads. Co-financing will be constructed to help raise the incomes ($17 million) is being provided by IFAD. Total of some 32,000 smallholder families-about cost: $84.4 million. 30% of whom have incomes below the ab- KENYA: IDA-$10 million. Through the solute poverty level. In addition, exports will expansion and upgrading of shore facilities increase and the national smallholder rubber for fish landing, storage, preservation, and development program will be strengthened. marketing and through the provision of fishing Total cost: $70.5 million. craft and gear and the establishment of a Fish INDONESIA: Bank-$42 million. Some Farming Development Center, fish production 4,000 landless families will be provided with will be increased and the incomes of fishermen farms on unutilizedrarmson uutlhzd ladland Inin Southouthoumatra Sumatera $13.3will be millin raised by about one-half. Total cost: province. Oil paim and food crop production KENYA: IDA-$6l5 million An experi- will be increased; village roads will be con- mENtAl Designe tealish th ech- structed and upgraded; basic health services mental project, designed to establish the tech- wills e provided to 20,000 peoplet and about nical, sociological, and economic foundations willbeo rovied20000peope; nd aout for the future development of the semi-arid 8,000 children will gain access to primary and are Bare district of the prov- secondary education. Total cost: $64.5 million areas in Barmigo district in Rft valley prov- * ince, and which will have an impact mainly INDONESIA: IDA-$42 million. The on low-income inhabitants, includes com- agricultural productivity of about 2.8 million ponents dealing with water and soil conserva- farm families will be raised through the im- tion, improvements in dryland and irrigation provement of extension services-including an cultivation methods, livestock production, increase in the number of extension workers rural infrastructure, expansion of government and field supervisors; the construction of about field staff, and planning for future programs. 1,120 rural extension centers, with equipment Total cost: $8.6 million. and furniture provided; and training classes KOREA, REPUBLIC OF: Bank-$50 mil- for extension staff. Total cost: $81.9 million, lion. Medium-term and long-term loans will INDONESIA: IDA-$12 million. By be provided to the private sector through the adapting new agricultural technologies and Agriculture and Fishery Development Cor- soil conservation measures for upland farm- poration for investments in agroprocessing ing, constructing two fish hatcheries and reha- facilities. Technical assistance is included. bilitating two others, upgrading a livestock Total cost: $84 million. market, improving 2,000 kilometers of roads, LAO PEOPLE'S DEMOCRATIC REPUB- making health care services and safe water LIC: IDA-$13.4 million. The government's available to about 400,000 people, and pro- efforts to achieve self-sufficiency in food providing technical assistance to small-scale enter- duction and increase foreign exchange earn- prises, poverty will be reduced in two of the ings will be supported through the rehabilita- poorest districts in Yogyakarta province. Total tion and construction of rice mills, a coffee cost: $19 million. mill, and related facilities in three provinces IVORY COAST: Bank-$9.4 million. The benefiting about 80,000 small farmers; the project-the first phase of an integrated rural construction of workshops to improve vehicle development program for the northeast savan- maintenance; the provision of agricultural ex- nah, a sparsely populated, isolated region- tension services; and a rural electrification consists of three agricultural production com- feasibility study. Co-financing ($1.4 million) is ponents aimed at increasing food crop produc- being provided by the UNDP. Total cost: tion and testing new farming systems; applied $18.8 million. research and field trials; and the improvement LIBERIA: Bank-$12 million. Help in ex- of rural roads and water supplies. Co-financing panding and diversifying the country's export is being provided by USAID ($3.7 million) base and increasing foreign exchange earnings Agriculture and Rural Development 101 through the development of the palm oil sub- fodder. Co-financing is being provided by sector will be provided. Extension services and USAID ($3.3 million) and the UNDP ($2.8 credit will be made available to about 1,000 million). Total cost: $24.8 million. small farmers; an oil mill will be constructed, NEPAL: IDA-$16 million. By rehabilitat- as well as roads and storage and port facilities; ing and upgrading an existing irrigation system and technical assistance and consultant services on the Mahakali river, and through the con- will be provided. Co-financing is being pro- struction of all-weather roads, the procurement vided by the CDC ($15 million), the AfDB of materials, equipment, and vehicles, and the ($8 million), and the EEC Special Action Ac- strengthening of agricultural extension ser- count ($2 million). Total cost: $48.8 million. vices, annual production of foodgrains, cash MALAWI: IDA-$ 13.8 million. The proj- crops, and vegetables will be increased, thereby ect forms the initial phase of a national pro- raising the incomes of local farmers. Total gram designed to meet the demand for fuel- cost: $19.5 million. wood and poles. Plantations will be established NICARAGUA: Bank-$20 million; IDA- to produce and sell fuelwood and poles for $10 million. Funds will be channeled through commercial use; 88 nurseries will be built for the Fondo Especial de Desarrollo to be on- producing seedlings for sale to smallholders; lent to institutions to provide credit to indus- and the Ministry of Agriculture and Natural trial enterprises for current production and the Resources will be strengthened by training key repair or replacement of fixed installations, and staff and establishing an Energy Department to private and state-owned farms for crop and to carry out studies of alternative sources of livestock production. Long-term financing for energy. Total cost: $16.3 million. the resumption of a coffee renovation program MEXICO: Bank-$160 million. About will also be made available. Financing for 10,000 farm families will benefit from the about 14 man-months of services, vehicles, and development of irrigated agriculture on equipment, and a livestock survey will also be 1 10,000 hectares in the Balsas river basin. provided. Total cost: $37.7 million. Technical assistance is included to help NIGER: IDA-$20 million. Through the strengthen agricultural extension, research, and introduction of improved farming practices, training services. Total cost: $408.8 million. vaccination coverage for livestock, and a train- MOROCCO: Bank-$58 million. By intro- ing and visit extension system, and through the ducing modern production techniques, strength- construction of small-scale irrigation schemes ening production planning, and establishing and the strengthening of agricultural research, a separate marketing structure for off-season the incomes and standard of living of some vegetables, the country's vegetable exports 80,000 farm families living in Dosso province will be doubled and foreign exchange earnings will be improved. Co-financing is being pro- increased by about $85 million annually. vided by the CCCE ($4.5 million) and FAC About 8,000 farm families will benefit directly, ($2.3 million). Total cost: $39.3 million. and the equivalent of an additional 16,000 jobs NIGER: IDA-$16.7 million. A five-year is expected to be created. Total cost: $129.6 program to increase farm incomes and improve million. the standard of living of the rural population MOROCCO: Bank-$34 million. The in- of Maradi province will be carried out by comes and productivity of farmers living in providing agriculture extension services, credit, the Loukkos river basin will be increased by a irrigation on 740 hectares, a seed multiplication project that includes erosion control works; program, and the development of functional field, tree crop, and livestock development; literacy and health programs. Co-financing is irrigation rehabilitation; agriculture support being provided by the CCCE ($7 million) services; land clearing and establishment of and IFAD ($12 million). Total cost: $47.5 pine plantations; and agricultural credit. In million. addition, roads, schools, and dispensaries will NIGERIA: Bank-$32.5 million. About be constructed. Total cost: $67.6 million. 70,000 farm families, living in Ondo state, will NEPAL: IDA-$17 million. The project, benefit from farm support services, including the first phase of a 20-year national forestry extension advice, improved seeds, fertilizers, program, is aimed at developing community and provision of credit facilities. In addition, forestry in the hill areas and establishing train- 500 kilometers of feeder and farm roads will ing facilities to satisfy the need for qualified be constructed or improved and 30 farm ser- forestry and soil and water conservation per- vice centers will be built. Total cost: $80.5 sonnel. The population of 340 panchayats million. (1.9 million people) will benefit from an in- NIGERIA: Bank-$28 million. Farm sup- crease in the production of fuelwood and port services and physical infrastructure will 102 Projects Approved, Bank and IDA, by Sector

be financed to help increase food production ping technology to lowland areas of Iloilo and improve the incomes of some 55,000 province, which have satisfactory rainfall but smallholder farm families living in the north- no access to major irrigation systems, produc- ern part of Oyo state. Total cost: $69.4 million. tion and employment opportunities will be in- PAKISTAN: IDA-$30 million. A fourth creased for about 40,000 farm families and agricultural development bank loan will fi- 5,000 landless laborers' families. Programs for nance, through the Agricultural Development improving nutrition and providing machinery, Bank of Pakistan, medium-term and long-term training, and consultant services for the prepa- investments in farm mechanization, minor ration of similar projects in Mindanao are also irrigation, onfarm development, and livestock. included. Total cost: $21.4 million. Technical assistance is included. Co-financing PORTUGAL: Bank-$50 million. About ($30 million) is being provided by IFAD. Total 150,000 hectares of new plantation forest will cost: $224.6 million. be established; credit will be extended to PERU: Bank-$56 million. More than owners of small forests; and technical assis- 11,000 families living in the lower Piura area tance and training will be made available to of the country-primarily small farmers and establish a forest extension service and to carry cooperative members-will benefit through the out studies to determine long-term strategies improvement of irrigation and drainage facili- for the development of forests and forest-based ties, reclamation of saline soils, flood protec- industries. Total cost: $170 million. tion measures, farm development assistance, ROMANIA: Bank-$90 million. Through and technical assistance. Total cost: $178.8 the construction of an irrigation and drainage million. system and related facilities, crop production PERU: Bank-$15 million. The living con- will be stabilized and productivity raised in a ditions of some 29,500 low-income rural fami- 148,400-hectare area located about 250 kilo- lies living in the southern Altiplano will be meters northeast of Bucharest. Some 51,000 improved through the construction of irriga- cooperative workers and 22,900 state farm em- tion systems and communal potable water sys- ployees will participate in the project. Total tems; provision of agricultural credit; intensive cost: $354.6 million. research and extension programs; rehabilitation of more than 500 kilometers of rural ROMANIA: Bank-$85 million. A third roads; establishment of 1,500 hectares of livestock project will help meet the growing forest plantations; and improved rural health local demand for poultry through the construc- facilities. Total cost: $27.3 million. tion of breeding and production farms and PHILIPPINES: Bank-$71 million. slaughterhouses and through the provision of Through the construction of diversion dams, specialized lab equipment for research and irrigation and drainage facilities, related roads disease control. Poultry production is expected and offices, and the provision of vehicles and to increase by 157,000 tons annually by 1987. equipment, more than 11,600 farm families Co-financing ($100 million) will be provided and 900 landless laborers' families, living on by a syndicate of private commercial banks. the islands of Mindoro and Palawan, will bene- Total cost: $311.4 million. fit from increased agricultural production and ROMANIA: Bank-$50 million. Credit will employment opportunities. In addition, the be provided through the Bank for Agriculture strengthening of the malaria control unit in and Food Industry to establish 29,820 hectares Palawan will benefit about 12,000 people. of new orchards and construct new fruit pack- Total cost: $118.5 million. ing and cold storage facilities. Technical assis- PHILIPPINES: Bank-$27 million. Rural tance to help improve fruit handling, storage, families living on the island of Samar-one of and processing and to improve applied re- the poorest areas of the country-will benefit search for mechanization of fruit production from a rural development project consisting of and harvesting will be made available. Total four main elements: road and port rehabilita- cost: $323.9 million. tion, irrigation construction, safe water facili- RWANDA: IDA-$21 million. To develop ties, and the provision of medicines to people the country's forestry resources, some 8,000 suffering from schistosomiasis. The project is hectares of fuelwood and pole plantations will part of a larger development plan for the island be established in Kigali and Butare and wood- that is being financed, in part, by a grant lots will be provided for 3,000 farm families. ($28 million) from the Australian govern- In addition, to strengthen its livestock industry, ment. Total cost: $45 million. integrated crop and livestock development in PHILIPPINES: Bank-$12 million. the Gishwati forest area will benefit about Through the extension of new multiple-crop- 40,000 farm families. Total cost: $23.6 million. Agriculture and Rural Developmient 103

SENEGAL: IDA- $11 million. About cluded. Co-financing ($1.6 million) is being 42,000 people will benefit directly from a proj- provided by NORAD. Total cost: $20 million. ect that has an important institution-building TANZANIA: IDA-$ 10 million. A training role aimed at increasing popular participation program for the Tanzania Rural Develop- in decision making on investments in the rural ment Bank's (TRDB) staff and village officials sector. Irrigated cultivation of rice, vegetables, will be financed, as well as a strengthening of and bananas, as well as beekeeping and fishing the TRDB's organizational structure, includ- activities, is included. An additional 100,000 ing the establishment of a management infor- people will gain access to permanent village mation center, and the provision of office water supplies. Co-financing ($400,000) for equipment and furniture, transportation facili- technical assistance services is being provided ties, and a line of credit to support the TRDB's by FAC. Total cost: $14.1 million. lending program and provide needed credit for SOMALIA: IDA-$12 million. The project economically sound rural projects. Total cost: aims to increase crop and livestock produc- $12.8 million. tivity through the development of all-season TANZANIA: IDA-$10 million. By pro- access roads and a farming system that will viding planting material, and through im- preserve the productivity of the land in the Bay proved research, and extension, marketing, region. About 15,000 farm families will benefit. and transport services, the incomes of some Technical assistance is included. Co-financing 37,000 smallholder pyrethrum farmers will be is being provided by USAID ($10.5 million), raised by about 17% over a five-year period. the ADF ($8.9 million), and IFAD ($8 mil- Total cost: $12.7 million. lion). Total cost: $43.4 million. THAILAND: Bank-$80 million. More SRI LANKA: IDA-$16 million. Some than 30,000 farm families, about 45% of 18,800 hectares of over-aged rubber will be whom have incomes below the absolute pov- replanted with high-yielding plants on about erty line, will benefit from an irrigation project 27,000 smallboldings, processing standards that provides for the construction of new will be improved, and technical assistance will facilities and the improvement of existing ones. be provided to raise the productivity and im- Some 81,000 hectares in the Meklong and prove the quality of rubber and strengthen Pattani river areas will be affected. Total cost: local agencies involved in smallholder produc- $186 million. tion. Total cost: $28 million. THAILAND: Bank-$40 million. As many SUDAN: IDA-$40 million. Some 22,000 as 2.3 million farm families will benefit from tenant families and 50,000 migrant laborers the expansion into 39 provinces, not covered will benefit from the rehabilitation of the New under a first project, of a program of effective Halfa irrigation scheme that is designed to in- agricultural extension services. Total cost: $70 crease the production of major export crops- million. primarily cotton and peanuts. Co-financing is THAILAND: Bank-$19 million. The pro- being provided by IFAD ($15 million) and the duction and incomes of about 9,000 farm ADF ($10 million). Total cost: $105 million. families will be increased through an agricul- TANZANIA: IDA-$43 million. The Na- tural credit project that calls for funds to be tional Milling Corporation's capacity to pro- onlent through the Bank for Agricultural Co- cure, transport, store, and mill food crops will operatives to small farmers. Training and be improved through the rehabilitation of exist- technical assistance to strengthen the coopera- ing warehouses and silos; construction of addi- tive system are included. Total cost: $37.6 tional storage facilities; extension of the Dar million. es Salaam corn mill and construction of a new TUNISIA: Bank-$30 million. About mill at Dodoma; construction of laboratories 11,800 farm families will benefit from an for grain and flour analysis; and transportation, agricultural credit project that covers a three- training, and technical assistance for local year lending program by the National Bank of staff. Total cost: $57.4 million. Tunisia to small and medium-scale farmers, TANZANIA: IDA-$14 million. Over a production and service cooperatives, commer- five-year period, the ongoing operations of the cial farmers, and agro-industries. Total cost: Tanzania Tea Authority will be consolidated $60.8 million. and strengthened by constructing one factory; TUNISIA: Bank-$25 million. The living extending and re-equipping five factories; pro- standards of some 30,000 people-mostly low- viding transport facilities, spare parts, and income groups in the Djerid, Nefzaoua, and tools; establishing fuelwood plantations; and Gabes areas-will benefit from an irrigation building roads. Technical assistance is in- project designed to increase the production of 104 Projects Approved, Bank and IDA, by Sector dates, vegetables, and forage, primarily for ex- YEMEN ARAB REPUBLIC: IDA-$ 17 port. Total cost: $72.5 million. million. IDA's first lending operation in the TURKEY: Bank-$51 million. Credit will country for fisheries development includes the be made available to about 2,900 small farm- construction of a fishing port and related facili- ers in 32 provinces for dairy cattle, sheep, and ties at Hodeidah, a landing pier at Khawbah, goat production and breed improvement and and fish handling, marketing, and storage facili- for poultry processing units. In addition, ties. A 32-kilometers-long road will be con- disease control programs, technical assistance, structed, and credit facilities will be made and training are included. Total cost: $125 available for fishing vessels, equipment, and million. transport vehicles. Part of the co-financing re- UPPER VOLTA: IDA-$14.5 million. quirement, amounting to $4 million, is ex- Through the establishment of 1,600 hectares pected to be provided by DANIDA ($2.7 mil- of rainfed tree plantations, 1,000 hectares of lion) and sources for the remaining $1.3 experimental natural forest, and 325 hectares million are being explored. Total cost: $30.3 of rural woodlots in the Bobo-Dioulasso area, million. and through a program of technical assistance YEMEN ARAB REPUBLIC: IDA-$5.5 to the Forestry Administration, the country's million. The living conditions of about 23,000 forest resources will be protected and devel- people will be improved through a fourth oped within the framework of the national project for the development of the Tihama forestry plan. Co-financing ($600,000) will be coastal plain that will improve the Wadi Rima provided by the UNDP. Total cost: $17.5 mil- basin's irrigation system, initiate a sand stabi- lion. lization pilot program to help prevent soil UPPER VOLTA: IDA-$6.5 million. A deterioration, and that provides for a water rice development project in the western part of resources study of the region. Co-financing will the country is the four-year pilot phase of a be provided by the KFAED ($5.5 million) and possible three-phase program to convert the NMDC ($700,000). Total cost: $20.8 swampland to more productive use through the million. construction of flood protection works. About YUGOSLAVIA: Bank-$86 million. Sub- 800 farm families will benefit from water con- loans will be made available through partici- trol facilities, improved extension services, and pating banks in each republic and autonomous access to farm inputs and credit. Total cost: province to some 18,800 farmers for livestock $7.1 million. development and increases in fruit and vege- URUGUAY: Bank-$24 million. Assis- table production. In addition, about 30,000 tance for livestock and dairy development farmers are expected to benefit from the devel- financed by earlier Bank projects will be con- opment of agro-industries. Total cost: $316 tinued; crops will be developed in areas where million. they are ecologically suited; and the incomes YUGOSLAVIA: Bank-S51 million. The of smallholder farmers in National Settlement productivity and incomes of about 13,000 Institute colonies will be increased by improv- families will be raised by a drainage project ing techniques and production patterns on that is part of Croatia's long-term flood control their farms that currently suffer from soil and drainage development program for the erosion and depletion. Totalcost: $111 million. Sava river basin. Total cost: $132.64 million. WESTERN SAMOA: IDA-$8 million. ZAIRE: IDA-$ 11 million. By providing The Western Samoa Trust Estates Corporation fertilizer, improved seeds, transport services, and about 1,500 subsistence farm families liv- and storage and marketing facilities, and by ing on Savai'i island-the least developed area rehabilitating village water supply systems, the of the country-will benefit from the introduc- production of corn is expected to increase, tion of improved planting materials, appro- thereby doubling the incomes of some 53,000 priate agricultural management and technol- farmers and saving more than $400 million in ogy, and an increase in the production of foreign exchange. Co-financing is being pro- coconuts, cocoa, coffee, and taro. Nurseries vided by IFAD ($15 million) and the AfDB will be built and technical assistance for ($6.4 million). Total cost: $38.5 million. agricultural development and financing for road construction will be provided. Co- Development Finance Companies financing has been arranged with Australia ($5.4 million), the UNDP ($1.7 million), the BRAZIL: Bank-$58 million. The health OECF ($1.4 million), and the EEC Special and living conditions of the population in the Action Account ($300,000). Total cost: $20.6 greater Sao Paulo area, notably low-income million. groups living near industrialized areas and con- Development Finance Companies 105 taminated water bodies, will benefit from an requirements to finance medium-scale and industrial pollution control project that in- large-scale enterprises through 1982. cludes both air and water pollution control sub- KOREA, REPUBLIC OF: Bank-$60 mil- projects and technical assistance to the state's lion. This loan will meet the foreign exchange environmental protection agency. Total cost: requirements of small and medium-sized in- $187 million. dustrial investment projects to be financed by CARIBBEAN REGION: Bank-$23 mil- the Small and Medium Industry Bank over the lion; IDA-$7 million. Funds will be pro- next two years. The project will support the vided to the Caribbean Development Bank for government's policy to develop small and relending to members of the Commonwealth medium-scale industries and thereby increase Caribbean for subprojects in the agriculture, the regional dispersal of employment oppor- manufacturing, tourism, transportation, and tunities and strengthen the country's industrial education sectors. Co-financing is being pro- structure; $25 million is earmarked for small. vided by Trinidad and Tobago ($10 million), labor-intensive projects. the IDB ($10 million), and the EEC Special KOREA, REPUBLIC OF: Bank-$30 mil- Action Account ($1 million). lion. Foreign exchange will be provided to the COLOMBIA: Bank-$150 million. Foreign Citizens National Bank to finance selected sub- exchange will be provided to the central bank projects over a two-year period beginning in for onlending to private development finance mid-1980. The proceeds will be used primarily companies to help finance nearly 300 projects to finance subloans to small-scale industries in a wide range of industries, including manu- and projects located outside of Seoul. facturing, mining, and tourism. LESOTHO: IDA-$4 million. The Lesotho EGYPT, ARAB REPUBLIC OF: Bank- National Development Corporation's (LNDC) $50 million. Part of the Development Indus- foreign exchange requirements for its develop- trial Bank's foreign exchange requirements ment finance operations will be met through will be provided for about two years to enable June 1982; training programs for LNDC staff, it to continue to provide foreign exchange re- as well as skilled and semi-skilled Basotho sources to industrial projects, mostly in the technicians, will be financed in an effort to private sector, including small enterprises. promote the development of industry and EGYPT, ARAB REPUBLIC OF: Bank- help meet the country's manpower needs. EGYPT,llio.ARABo RE-aLIC OF:trank MADAGASCAR: IDA-$5 million. The $30 million. About one-half of the Misr Iran Bankin'ny Indostria will be provided with part Development Bank's foreign exchange require- of its foreign exchange requirements to finance ments will be provided over a two-year period lending to artisans and medium-scale industrial to help promote and finance medium-sized and enterprises during the period, September 1979 large industries in the private sector, espe- through December 1981. Technical assistance cially in three priority sectors-building ma- is included. Co-financing is being provided by terials and construction, capital goods, and the CCCE ($4.8 million), Italy ($4.8 million), export-oriented industries. and the KfW ($1.4 million). Total cost: $29 INDIA: Bank-$ 100 million. Help in meet- million. ing the foreign exchange requirements of high- MAURITIUS: Bank-$6 million. The De- priority industrial projects to be financed by the velopment Bank of Mauritius will be assisted Industrial Credit and Investment Corporation in financing the foreign exchange component of India will be provided. About one-third of of loans and investments in industry, agro-in- the loan proceeds will be used to assist projects dustry, and tourism, as well as the investment in the country's poorest areas. needs of artisanal and small-scale enterprises. JORDAN: Bank-$10 million. A line of PAKISTAN: IDA-$40 million. The for- credit will be provided to the Cities and Villages eign exchange costs of industrial projects Development Bank for financing subprojects carried out by private enterprises will be fi- to help meet basic needs in water supply, nanced; textile industry personnel will be health, and education, and to improve eco- trained; and technical assistance will be pro- nomic infrastructure in villages and municipali- vided to the Ministry of Industries and the ties, resulting in the improvement of the living Pakistan Industrial Credit and Investment standards of some of the poorer segments of Corporation. the population. PARAGUAY: Bank-$31 million. The KENYA: Bank-$30 million. A line of government's attempt to promote industrial credit will be provided to the Industrial Devel- growth and tourism, particularly in the eastern opment Bank, a key development institution in part of the country, will be supported by pro- the country, to help meet its foreign exchange viding funds through the commercial banking 106 Projects Approved, Bank and IDA, by Sector

system and the National Development Bank facilities, materials, and teacher training for industrial, agro-industrial, and tourism courses, by increasing community involvement subprojects and by making key extension ser- in school management, and by having larger vices available to small-scale entrepreneurs. classes and schools. Total cost: $44.4 million. Total cost: $57.6 million. BOTSWANA: Bank-$10 million. The net- TANZANIA: Bank-$25 million. The Tan- work of junior secondary schools will be ex- zania Investment Bank's foreign exchange re- panded and improved, rural vocational training quirements for investments in medium-scale will be increased, and training will be provided and large-scale industrial, agroprocessing, and for civil servants and public sector personnel tourism development projects will be met, in through this second education project. Techni- part, through June 1982. Co-financing ($15 cal assistance is included. Total cost: $14.6 million) is being provided by the EEC Special million. Action Account. BRAZIL: Bank-$32 million. About TURKEY: Bank-$80 million. Foreign 800,000 students annually and 23,000 teachers exchange will be provided, through the Tur- living in rural areas in nine northeastern states kiye Sinai Kalkinma Bankasi A. S. (TSKB) and will benefit from the construction of class- the Sinai Yatirim ve Kredi Bankasi A.O. rooms, provision of textbooks, teacher training, (SYKB), to rationalize and modernize the a pilot school-meals program, and curricula de- private textile sector, and to improve its effi- velopment. Total cost: $91.4 million. ciency and its export capability. BURUNDI: IDA-$15 million. A second TURKEY: Bank-$60 million. The Indus- education project, over a five-year period, will trial Development Bank of Turkey will be assist the government in training middle-level assisted, through a thirteenth loan, in its efforts technicians and skilled workers in industrial to increase the amount and proportion of its and administrative skills, implement and evalu- lending for export-oriented projects and to ate a reform of the education system, and continue to allocate sizable resources to the less strengthen the planning, supervision, and proj- developed regions and to small and medium- ect implementation capacity of the Ministry sized, labor-intensive projects. The funds will of Education. Total cost: $17.3 million. bridge a part of its foreign exchange resource IVORY COAST: Bank-$24 million. The gap to the end of 1980. rural population of the Seguela area will have ZAIRE: IDA-$18.5 million. Part of the better access to primary education through a Societe Financiere de D6veloppement's foreign third education project that will establish four exchange component for financing subprojects vocational training institutes to relieve a mid- in the agriculture, transportation, and indus- dle-level manpower shortage, four primary trial sectors will be provided. Staff training and teacher training centers to improve the quality equipment are also included. of education, and a pilot community development project. Co-financing ($19.5 million) is Education being provided by the AfDB. Total cost: $84.9 million. ALGERIA: Bank-$87 million. Six training JORDAN: Bank-$19 million. The govern- centers will be established to train skilled ment's education and training policies will be workers in the repair and maintenance of con- supported and manpower constraints will be struction and transport equipment and house- eased through the construction/extension of hold appliances; to train and upgrade super- one training complex, five comprehensive sec- visors and skilled and semi-skilled workers for ondary schools, one agricultural secondary the construction, wood and cork processing, school, one prevocational teacher training insti- and food processing industries. In addition, a tute, one community college, and the provision computer-based management information sys- of a computerized management information tem will be set up in the Ministry of Higher system and equipment for eight mobile build- Education and in five universities to help im- ing maintenance units. Technical assistance to prove the management of higher education. strengthen the Ministry of Education's plan- Total cost: $151.1 million. ning and management capabilities is included. BANGLADESH: IDA-$40 million. A Co-financing ($1.5 million) is being provided fourth education project will increase access by the UNDP. Total cost: $40.1 million. to primary education for about 175,000 stu- KOREA, REPUBLIC OF: Bank-$100 mil- dents-especially for girls and for the rural lion. The quality and content of higher tech- poor-and will reduce student dropout and nical education will be improved by a loan to repetition rates, improve the quality of instruc- finance part of an overall national program for tion, and lower costs by providing school the upgrading of educational facilities and for Energy 107

organization, curricula, and staff development ect managers, construction foremen, and to help meet the technical manpower needs road maintenance personnel. Technical assist- during the 1980s. Total cost: $700 million. ance and consultant services are included. Co- PHILIPPINES: Bank-$38 million. In sup- financing ($7.4 million) is being provided by port of the government's program for the de- the ADF. Total cost: $25.1 million. velopment of the fishery sector, the University of the Philippines' College of Fisheries will be Energ relocated to the Visayas, and seven regional fishery technician training institutes and adja- ARGENTINA: Bank-$210 million. The cent fishermen training centers will be estab- project-including construction of 70 kilo- lished. Total cost: $70.6 million. meters of earth dam on the Parana river, two PORTUGAL: Bank-$40 million. Indus- spillways, and a powerhouse with 20 units, each trial and agricultural training will be improved of 135 mW capacity, as well as fish passage and increased through a project that provides facilities; a navigation lock for ships; and the for the construction, equipping, and furnishing resettlement (necessitated by the creation of a of 43 science laboratories and vocational work- major reservoir) of about 33,000 people- shops in secondary schools, two agricultural forms part of the national power expansion and three industrial technician training insti- program for meeting the country's demand for tutes, and university faculties in agriculture, power. Co-financing is being provided by the veterinary medicine, science, and engineering. IDB ($210 million) and commercial banks In addition, seven primary teacher training in- ($945 million). Total cost: $3,781 million. stitutes, as well as seven farmer training centers ARGENTINA: Bank-$27 million. Assis- and two mobile training units to benefit more tance will be provided to help determine oil and than 10,000 farmers, will be included. Total gas reserves in 44 major reservoirs; about cost: $59 million. 1,000 line-kilometers of seismic surveys will SWAZILAND: Bank-$ 1 0.1 million. be conducted; and a study will be made to de- A third education project will improve access termine the optimum development and utiliza- to education for rural and underprivileged tion of natural gas in order to improve energy children by providing about 11,000 places at sector planning, avoid waste, and attract pri- the primary level and 2,640 places at the junior vate investment in the sector. Total cost: $49.6 secondary level through the construction, fur- million. nishing, and equipping of 31 new primary BOLIVIA: IDA-$16 million. The proj- schools and six new junior secondary schools ect-including a 14-well appraisal drilling pro- and expansion of 12 primary and 10 junior gram; an initial phase of a project for sec- secondary schools. In addition, textbooks and ondary recovery of oil in Monteagudo; a seis- teaching guides will be provided to primary mic survey; a study of the country's domestic schools and an in-service training center and gas market; and a prefeasibility study of a gas the Swaziland Institute of Management and export project-will enable the country to in- Public Administration will be expanded. Total crease its gas exports and its foreign exchange cost: $15.3 million. earnings. Co-financing ($16 million) is being TOGO: IDA-$11 million. Two primary provided by the IDB. Total cost: $41.8 teacher training colleges, each with 360 student million. places, will be built and equipped; the Direc- BRAZIL: Bank-$114 million. The project torate of Educational Research and Teacher forms a part of the Companhia Estadual de Training will be strengthened; and the National Energia Eletrica's program for the expansion Institute of Agricultural Training will be ex- of its power subtransmission and distribution panded to help increase the supply of middle- system in the state of Rio Grande do Sul during level and high-level agricultural manpower. the period, 1980-84. Electricity will be made Technical assistance is included. Co-financing available for the first time to some 35,000 low- will be provided by FAC ($3.1 million) and income urban consumers and about 12,000 Saudi Arabia ($2 million). Total cost: $20 rural consumers. Co-financing (about $110 million. million) is expected to be provided by private UPPER VOLTA: IDA-$14 million. Pri- banks. Total cost: $314 million. mary education will be expanded in rural areas COLOMBIA: Bank-$ 125 million. Elec- by a second education project that includes the tricity will be made available to about 75,000 rehabilitation of 140 youth training centers, the families living in Medellin and to 6,000 new establishment of 160 new centers, the con- industrial and commercial users through the struction of instructor training facilities, and construction of a 213 mW hydroelectric plant, the provision of training for agriculture proj- 150 kilometers of transmission lines, and the 108 Projects Approved, Bank and IDA, by Sector expansion of six existing substations and the Wailoa power station; and overseas training construction of five new ones. Total cost: will be provided for the staff of the Fiji Elec- $228.3 million. tricity Authority. Co-financing will be provided COLOMBIA: Bank-$87 million. Electric- by the EIB ($16.6 million) and the CDC ($4.8 ity will be made available to an estimated million). Total cost: $50 million. 157,000 new residential, commercial, indus- HONDURAS: Bank-$105 million; IDA- trial, and low-income urban customers living $20 million. Through the construction of the in Bogota through the expansion and rehabili- 292 mW El Caj6n hydroelectric plant, the tation of the city's distribution network; in country's power load requirements for 1986- addition, the quality of service will be en- 90 will be met from natural energy sources; hanced through a training program that will fuel consumption in thermal plants will be help strengthen the Empresa de Energia Elec- reduced; the Empresa Nacional de Energia trica de Bogota's operating and maintenance El6ctrica's management capacity will be practices. Total cost: $182.2 million. strengthened; and flood control benefits in the CONGO, PEOPLE'S REPUBLIC OF Sula valley will make possible the development THE: IDA-$5 million. The government will of future irrigation projects. Co-financing will be assisted in its efforts to strengthen the ca- be provided by the IDB ($95 million), the pacity of the Ministry of Mines and Energy to Venezuelan Investment Fund ($55 million), the manage the petroleum sector and to improve OECF ($33 million), the CABEI ($30.6 mil- the capability of HYDROCONGO-the na- lion), the CDC ($10 million), and the OPEC tional oil company-to handle its oil import Fund for International Development ($8.5 and distribution functions effectively. Prelimi- million). In addition, suppliers' credits and nary studies will be carried out in areas where funds from commercial banks, totaling $83 there is a possibility for increased recovery, as million, are expected to be made available. well as in areas where exploration has never Total cost: $582.7 million. taken place. Total cost: $5.6 million. HONDURAS: Bank-$3 million. Training, CYPRUS: Bank-$ 16 million. About 51,000 equipment, and materials will be provided to people, including 20,000 rural customers, will the General Directorate of Mines and Hydro- benefit from the expansion of power transmis- carbons to support the government's efforts to sion and distribution facilities in the southern find a domestic supply of petroleum by encour- part of the country. Total cost: $39.6 million. aging foreign oil companies to explore the EGYPT, ARAB REPUBLIC OF: Bank- most promising offshore areas. Technical as- $7 million; IDA-$120 million. To help meet sistance will also be provided to the govern- the electricity load forecast through 1986, the ment to improve its energy sector planning. Aswan hydropower station will be extended; Total cost: $3.6 million. the Shoubrah El Kheima thermal power station INDIA: IDA-$300 million. The second will be completed; and distribution facilities in stage of the coal-fired Singrauli power generat- urban, suburban, and rural areas outside Cairo ing station will be constructed in Uttar Pradesh and Alexandria will be rehabilitated and ex- state, together with about 2,000 kilometers of tended. Co-financing is being provided by associated 400 kv transmission facilities. Co- CIDA ($25 million), the OECF ($15 million), financing ($100 million) is being provided by and the NMDC ($9.6 million). Total cost: the KfW. Total cost: $914.3 million. $677.8 million. INDIA: Bank-$25 million; IDA-$225 EGYPT, ARAB REPUBLIC OF: IDA- million. The first stage of the Farakka thermal $50 million. To reduce the country's reliance power station will be constructed in West on imports of liquefied petroleum gas, gas oil, Bengal state. The project includes the installa- and kerosene, infrastructure will be provided tion of three 200 mW generating units, 410 enabling those imported products to be re- kilometers of 400 kv transmission lines, and placed with natural gas, a locally available a training simulator, and is designed to ease the source of energy, that will be used to supply acute power shortages in the country's eastern a gas distribution network for domestic con- region. Total cost: $499.4 million. sumers in four districts of Cairo, as well as to INDONESIA: Bank-$253 million. The two power stations. Total cost: $155 million. project-including the installation of a 400 FIJI: Bank-S15.5 million. To reduce the mW generating set; 500 kv transmission lines country's dependence on imported energy re- from Suralaya to Semarang with four 500 kv sources, the storage capacity of the Monsavu substations; training facilities for operating dam will be doubled; two diversion dams will personnel; and a control center in Jakarta to be constructed; generating sets and associated monitor the operation of generating facilities- electrical equipment will be installed at the will help provide urgently needed baseload Energy 109 generating capacity in Java. Co-financing is ploration of current producing areas, as well being provided by the AsDB ($139 million). as assess the petroleum potential of unexplored Total cost: $694 million. basins. Technical assistance is included for ex- KENYA: Bank-$40 million. The project ploration management, accounting, and evalu- will help meet the country's expected growth ation of the results of exploration and the in power demand from 1981 through 1985 and technical and economic analysis of any new will assist in reducing dependence on imported discoveries. Total cost: $90 million. fuel through the drilling of geothermal steam NIGERIA: Bank-$ 100 million. The proj- wells, construction of a generating station com- ect will assist in meeting the rising demand for prising two 15 mW units, and installation of electricity in Lagos through 1986 by expand- 22 kilometers of 132 kv transmission lines. ing the high-tension system of lines and sub- Consultant services, training, and studies to stations, as well as the low-tension distribution determine geothermal potential are included. system. Instructors, materials, and equipment Co-financing ($20 million) is being provided will be provided to train National Electric by the CDC. Total cost: $89 million. Power Authority staff. Co-financing ($35 mil- KOREA. REPUBLIC OF: Bank-$1 15 lion) is being provided by the EIB. Total cost: million. The Korea Electric Company will be $222.2 million. assisted in expanding its power development PAKISTAN: IDA-$45 million. About program to meet the load growth from 1984 4,500 kilometers of transmission lines will be through the installation of two 500 mW coal/ erected, and about 210 substations will be oil-fired units and auxiliary equipment; a fuel constructed, expanded, or converted. Studies unloading dock; a pumping station; a 345 kv will be made for a load dispatch system and transmission line between the power station at for the conversion of the 220 kv Karachi- Gojeong, located on the west coast near the Tarbela transmission system to a 500 kv opera- port of Kunsan, and Seoul; and related sub- tion to help provide the most economic means stations and consulting services. Total cost: of transmitting power throughout the country. $657 million. Co-financing is being provided by the EEC MADAGASCAR: IDA-$ 12.5 million. Special Action Account ($35 million), the The government's efforts to develop a domestic AsDB ($25 million), the KfW ($18 million), supply of hydrocarbons and improve planning and CIDA ($14.5 million). Total cost: $506 of the energy sector will be supported by a million. program of onshore reconnaissance seismic PANAMA: Bank-$23 million. The project work; an engineering study for a heavy oil consists of the rehabilitation and expansion of pilot plant at Tsimiroro; and consultant serv- the power subtransmission and distribution ices to compile and review data, supervise systems throughout the country during the surveys, and train local staff. Total cost: period, 1980-83. Thirty-eight specific subproj- $14.6 million. ects and routine expansion of distribution sys- MADAGASCAR: IDA-$10 million. Sup- tems will be executed and technical assistance plemental finance will be provided the Ande- will be provided to strengthen the Instituto de kaleka Hydroelectric Project, approved in fis- Recursos Hidraulicos y Electrificaci6n's cal 1978, bringing the credit amount to $43 capacity to plan, design, and construct sub- million. Co-financing is being provided by the transmission and distribution projects. Total OPEC Fund for International Development cost: $35 million. ($6.5 million), Sweden ($5.8 million), and the PERU: Bank-$32.5 million. The project CCCE ($2.1 million). will help finance the expansion of the country's MALAYSIA: Bank-$50 million. Two petroleum production through the rehabilita- dams and hydroelectric power stations, with tion of existing wells on the coast and in the associated transmission and substation facili- jungle; the undertaking of seismic surveys in ties, will be constructed on the Perak river. the jungle; the updating of a feasibility study Consultant services will also be provided to as- for a secondary recovery project on the north sist with an energy resources study. Co-financ- coast; and the provision of consultant services ing will be provided by the OECF ($52.1 and training to strengthen the operation of the million), the CDC ($13 million), and CIDA national petroleum company. Total cost: $50.7 ($6.8 million). Total cost: $232.9 million. million. MOROCCO: Bank-$50 million. This proj- SENEGAL: IDA-$3.3 million. The gov- ect will support the country's efforts to reduce emient will be assisted in preparing a national its heavy dependence on imported petroleum energy plan and in improving general planning products by helping the Bureau de Recherches in the power sector through a study to deter- et de Participations Minieres complete its ex- mine the optimal organization of the country's 110 Projects Approved, Bank and IDA, by Sector power sector, financial and tariff studies, a de- THAILAND: Bank-$75 million. About 6 sign study for the construction of a headquar- million people living in 8,000 villages will gain ters building for the new power entity, and a access to electricity through the construction of feasibility study to analyze the possibility for primary and secondary lines and the installa- expansion of power generating facilities. Total tion of distribution transformers and street cost: $4 million. lighting. Vehicles, tools, equipment, and con- SOMALIA: IDA-$6 million. Technical sultant services are included. Co-financing is assistance will be provided to the Department being provided by the SFD ($20 million), the of Mines and Hydrocarbons to help promote OPEC Fund for International Development development of the country's domestic supply ($8 million), and Norway ($1.5 million). Total of hydrocarbons and improve its energy sector cost: $270 million. planning. Geophysical studies, seismic surveys, THAILAND: Bank-$72 million. Lignite staff training, and office and field equipment production in the country's remote northern are included. Total cost: $7.2 million. region will be expanded to help meet the in- SRI LANKA: IDA-$ 19.5 million. Power creasing demand for power as part of a national transmission and distribution facilities will be plan to develop alternative energy sources and expanded during the period, 1981-84, to help reduce the country's dependence on oil im- meet the country's growing demand for elec- ports. In addition, the living conditions of tricity. Consulting services will be provided to some 300 squatter families will be improved help strengthen the Ceylon Electricity Board's by a plan to resettle them in a village with a managerial and commercial performance. Co- school, health center, electricity, and other financing ($20 million) is being provided by facilities. Total cost: $130.3 million. the SFD. Total cost: $63.3 million. TUNISIA: Bank-$37 million. Natural gas SUDAN: IDA-$65 million. The project is from the Algeria-Italy pipeline will be supplied designed to provide additional generating to industrial users and power plants in major capacity and extension of transmission lines to cities to help decrease domestic consumption meet the growing demand for power from the of fuel oil, thus yielding a net foreign exchange Blue Nile grid area through 1986. Co-financ- saving of at least $120 million a year. Total ing is being provided by the ODA ($114 mil- cost: $88 million. lion) and the BMZ ($25 million). Total cost: TURKEY: Bank-$120 million. The proj- $290 million. ect-including the construction of a 173- TANZANIA: IDA-$30 million. The first meter-high dam, a storage reservoir, and a phase of a drilling program designed to assist powerhouse with ancillary facilities-is the the country in the assessment of the hydrocar- least-cost method of meeting the country's bon potential of the Songo Songo field area will projected growth in power demand. Co-financ- be financed and the Ministry of Water, Energy, ing is being provided by the EIB ($ 110 million), and Minerals' capability in energy sector the Abu Dhabi Fund ($26 million), and Italy planning will be strengthened. Co-financing ($20 million). Total cost: $1,160 million. ($500,000) is being provided by the EIB. Total URUGUAY: Bank-$24 million. Distribu- cost: $33 million. tion networks in Montevideo and in the interior THAILAND: Bank-$107 million. An of the country will be renovated and expanded underwater pipeline system will be laid and to help meet the forecast demand for power ancillary infrastructure constructed so that off- through 1983. Consultant services for project shore gas may be transported to a terminal at management and studies concerning manage- Sattahip and, from there, distributed to power ment, tariffs, and the energy sector will be in- stations and industrial users in the greater Bang- cluded. Co-financing ($24 million) is being kok area. Training, technical assistance, and provided by the IDB. Total cost: $52.5 million. additional studies are included. Total cost: YEMEN, PEOPLE'S DEMOCRATIC RE- $514 million. PUBLIC OF: IDA-$9 million. The govern- THAILAND: Bank-$80 million. The proj- ment's efforts to intensify the search for oil/gas ect forms part of the Electricity Generating reserves will be supported through a 15-month Authority of Thailand's 1979-86 power devel- seismic survey to accumulate high-quality opment plan. A rockfill storage dam is in- data and uncover prospects sufficiently attrac- cluded, as well as a spillway, a surface power- tive to oil companies to undertake exploration house, the installation of a 230 kv transmission in the country. Technical assistance will be line, and a program for the resettlement of provided to strengthen the Petroleum Explora- about 2,000 families. Total cost: $361.9 tion Department's capacity to supervise and million. carry out geophysical surveys and help im- Nonproject 111 prove energy sector planning and train staff. million-ton Sechura desert phosphate deposits Total cost: $10 million. that, if developed, are expected to stimulate regional growth; help satisfy the growing world Industry demand for phosphate fertilizers; and make a substantial contribution to the country's bal- BANGLADESH: IDA-$29 million. ance of payments. Total cost: $9.5 million. Through the rehabilitation of three major fer- PORTUGAL: Bank-$44 million. Through tilizer plants and by providing staff training the relocation, modernization, and expansion and equipment, fertilizer production will be of a steel foundry and a valve plant, the expan- increased by some 100,000 tons a year begin- sion of hydropower equipment manufacturing ning in 1983. Co-financing ($4.7 million) is facilities, and the strengthening of management being provided by the NMDC. Total cost: systems of the two involved industries, produc- $46.6 million. tivity in the engineering industries subsector COLOMBIA: Bank-$80 million. An open will be increased, competitiveness enhanced, pit mine at the Cerro Matoso nickel laterite de- and export potential improved. Total cost: $89 posit in the department of C6rdoba, which will million. produce about 60,000 metric tons of ferro- TURKEY: Bank-$83 million. To help nickel annually, will be constructed. At full meet the country's demand for textile products, production, net foreign exchange inflows of equipment for spinning, weaving, and finish- about $68 million annually will support the ing will be provided; a new garment plant will country's export diversification policies. Co- be equipped; and existing factory facilities will financing is being provided by the Chase Man- be rehabilitated. Technical assistance is in- hattan Bank ($120 million) and the US Export- cluded. Total cost: $150.5 million. Import Bank ($25.6 million). Total cost: $340 million. Nnrjc EGYPT, ARAB REPUBLIC OF: Bank- Nonproject $69 million. The organizational and financial BANGLADESH: IDA-$50 million. For- performance of one of the country's major tex- eign exchange will be provided for the import tile companies will be improved through the of industrial components, chemicals, raw ma- construction of new spinning and weaving terials, and spare parts to enable selected high- mills, the rehabilitation of existing mills, and priority industries to reach their full production the installation of new equipment. Technical potential. assistance is included. Total cost: $104.3 BOLIVIA: Bank-$50 million. Structural million. adjustment assistance will provide general bal- EGYPT, ARAB REPUBLIC OF: Bank- ance of payments and budgetary support for $50 million. Physical facilities and technical the government's economic recovery program. assistance will be provided to the National Foreign exchange will be made available for Paper Company and the General Company for essential imports of raw materials, intermediate Paper Industry to modernize and rehabilitate goods, spare parts, and capital goods. In addi- their existing plants in order to increase pro- tion, technical studies, mineral tax reform, duction, improve quality, and reduce operating agricultural export promotion, and prefeasibil- costs. Total cost: $71.5 million. ity studies in mining and agriculture are in- MAURITANIA: Bank-$60 million. Two cluded. open iron ore pits with proven reserves of more DOMINICAN REPUBLIC: Bank-$25 than 400 million tons will be developed near million. To help support hurricane reconstruc- Zouerate to help sustain government revenues tion efforts, imports of raw materials and semi- and foreign exchange inflows and create em- manufactured and finished goods that are ployment. Co-financing is being provided by necessary to restore national production of the SFD ($65 million), the CCCE and French goods and services will be financed. suppliers' credits ($50 million), the KFAED KENYA: IDA-$55 million. This structural ($45 million), the AFESD ($35 million), the adjustment credit, to be disbursed in two EIB ($30 million), the Abu Dhabi Fund ($20 tranches, will provide support for a program million), the OECF ($16 million), the AfDB of economic measures that the government in- ($12 million), and the OPEC Fund for Inter- tends to carry out to improve its foreign trade national Development ($5 million). Total cost: and industrial structure. The program and $500.7 million. policies will aim at better utilization of indus- PERU: Bank-$7.5 million. Feasibility trial capacity and at making the industrial sec- studies will be made to determine the technical tor more efficient and competitive, with par- and economic viability of developing the 600- ticular emphasis on the promotion of exports. 112 Projects Approved, Bank and IDA, by Sector

The EEC is contributing $15 million under a of Tamil Nadu. Food, vitamin, and mineral Special Action Account credit. supplements will be provided to about 711,000 PARAGUAY: Bank-$5 million. A second children, as well as to 275,000 pregnant and preinvestment studies project will help finance nursing women. In addition, nutrition educa- subloans through the preinvestment fund of tion will be made available and reorganiza- Paraguay's Central Bank to carry out feasibil- tion of the health care system to improve its ity studies of public investment projects; under- efficiency and coverage in rural areas will be take sector and other prefeasibility studies; supported. Total cost: $66.4 million. strengthen the preinvestment process estab- INDONESIA: Bank-$35 million. The lished under the first project; and provide national family planning program will be ex- technical assistance to establish a financial pro- panded and basic health care services strength- gramming unit within the Ministry of Finance. ened to help the government achieve its long- Co-financing ($1 million) is being provided by term goal of reducing the 1971 fertility rate by the UNDP. Total cost: $13 million. half by 1990. Technical assistance and train- SUDAN: IDA-$65 million. The project- ing are included. Total cost: $72.6 million. the first Bank operation of its kind in the KOREA, REPUBLIC OF: Bank-$30 mil- country-will provide foreign exchange for lion. More than 10 million people will be high-priority imports in the irrigated agricul- affected by a population project that aims to ture subsector and policy and institutional re- lower fertility, mortality, and morbidity by forms that form part of a long-range program improving health and family planning services. to increase cotton exports. Technical assistance The project will provide training for multipur- is included. Co-financing ($11.05 million) is pose workers and other family planning per- being provided by the EEC Special Action sonnel; will expand information, education, Account. and communication activities in health and TURKEY: Bank-$200 million. A struc- family planning; and improve the program's tural adjustment loan, to be disbursed in three evaluation and administration capacities. Total tranches, will finance high-priority imports for cost: $93.4 million. agriculture and industry in support of the country's efforts to improve its capacity to earn foreign exchange through industrial and Small-scale Enterprises agro-industrial exports, as well as improve income distribution, employment opportunities, ALGERIA: Bank-$20 million. Technical and living standards. assistance will be provided to SN Metal to im- UGANDA: IDA-$72.5 million. Funds will prove its management and operations through be made available for the import of essential appropriate start-up and operating assistance to raw materials, intermediate goods, spare parts, the company's new production units, and by and equipment to help rehabilitate the coun- evaluating its long-term investment program, try's economy. Of the $72.5 million IDA establishing priorities, and preparing feasibil- credit, $17.5 million will be provided under a ity studies. A master plan will also be developed participation arrangement with the Nether- to determine appropriate organization and lands. Co-financing will be provided by the allocation of production among its manufac- EEC Special Action Account ($20 million) and turing units. Total cost: $49.7 million. CIDA ($2.6 million). BANGLADESH: IDA-$20 million. Through the rehabilitation and maintenance Population, Health, and Nutrition of machinery and the provision of new equipment, training centers, and improved organiza- INDIA: IDA-$46 million. A second popu- tion and management, the jute industry- lation project-including service delivery, which accounts for one-half of the country's training, information, and education activities, exports and employs about 205,000 people- and research-will be carried out in six dis- will be able to provide increased foreign ex- tricts of Uttar Pradesh state and three districts change earnings, as well as continued incomes of Andhra Pradesh state to help lower infant for jute farmers. Total cost: $26.5 million. and child mortality and morbidity, improve the BARBADOS: Bank-$10 million. The main health of mothers and children, and lower the programs included in the Barbados Industrial birth rate. Total cost: $96 million. Development Plan will be supported by a proj- INDIA: IDA-$32 million. The availability ect that provides financing for industrial pro- and quality of basic health and nutrition ser- motion, construction of factory buildings, vices will be improved for some 10 million equipment, permanent working capital, and people living in six rural districts in the state vocational and management training programs. Telecommunications 113

About 5,000 new jobs will also be created. Co- craft workers and related associations. Total financing ($2.35 million) is expected to be pro- cost: $6 million. vided by the CDB. Total cost: $21.9 million. SIERRA LEONE: IDA- $2.5 million. BENIN: IDA-$10 million. Funds will be Technical assistance will help strengthen the made available to the Banque Beninoise pour government's capability in development plan- le Developpement (BBD) for financing small ning, the preparation of development projects, and medium-scale investments in the industrial the training of local staff, and the monitoring sector. Technical assistance will also be pro- and evaluation of public investment programs. vided to help build the BBD's capacity to iden- Total cost: $2.8 million. tify, promote, and assist industrial projects. SRI LANKA: IDA-$3 million. Technical Total cost: $13.5 million. assistance will be provided for a study of plans COLOMBIA: Bank-$32 million. Subloans for conveying and utilizing surplus Mahaweli to about 1,500 small and medium-scale indus- Ganga water to develop land in three alterna- trial enterprises to carry out necessary invest- tive areas. A review of designs and tender ments required for expansion, renovation, or documents for the Right Bank canal will be relocation will be financed. New jobs and made, and support for other studies and de- higher incomes will be generated for more signs of projects in the Mahaweli Ganga than 7,500 workers. Total cost: $83 million. Development Program will be provided. Co- ECUADOR: Bank-$20 million. To help financing ($2 million) is being provided by generate employment, improve incomes, and the EEC Special Action Account. Total cost: promote regional development, a line of credit $6 million. will be made available through the Corpora- WESTERN AFRICA REGION: IDA-$3 ci6n Financiera Nacional (CFN) for some 625 million. Feasibility and detailed engineering subloans to small-scale enterprises (SSEs). The studies of regional development projects (in the CFN will also manage a technical assistance agriculture, infrastructure, and industry sec- program and provide training for SSE staff. tors) in the pipeline of the West African Devel- Total cost: $37.8 million. opment Bank (BOAD) will be financed. The MALI: IDA-$8 million. A line of credit studies will serve to fill out the pipeline and will be provided for small and medium-scale will be a catalyst in mobilizing additional re- private enterprises and artisans; a comprehen- sources for BOAD, established by the West sive technical assistance and institution-build- African Monetary Union in 1973. Total cost: ing program for private entrepreneurs and $3.6 million. artisans will be established; and a pilot rehabilitation project in the state enterprise sector will be undertaken to help strengthen the country's Telecommunications industrial sector. Total cost: $11.1 million. MEXICO: Bank-$100 million. Funds will BURMA: IDA-$35 million. By 1985, be made available to expand the production through the installation of about 68,000 direct capacity and improve the efficiency of small exchange lines (including maritime radio tele- and medium-scale industrial enterprises, par- phone equipment at three main ports and mo- ticularly those located outside main urban bile radio telephone systems), about 500,000 centers. About 20,000 new jobs will be people will gain access to telephone service in created. Technical assistance is included. Total 54 township administrative centers and 13 vil- cost: $272.6 million. lages. Expanded and upgraded service will also MEXICO: Bank-$40 million. Institutions be provided in 30 regional centers with popu- that assist mining enterprises will be supported lations of between 4,000 and 180,000 people. in their efforts to provide financial and techni- Co-financing ($10.9 million) is being provided cal assistance to small and medium-scale min- by the OECF. Total cost: $93 million. ing enterprises for exploration, mine develop- COLOMBIA: Bank-$44 million. A fifth ment, and production programs. Total cost: telecommunications project will help meet the $107 million. demand for telephone services in Medellin and surrounding areas through an expansion and Technical Assistance improvement in service, including the installation of about 3,000 public call offices in rural KENYA: IDA-$4.5 million. A four-year and urban low-income communities and the technical assistance program will finance stud- continuation of a highly subsidized call rate ies, training, and consultant services related to that will provide the poor with convenient export promotion, as well as provide assistance access to telephone services for the first time. to the Kenya Bureau of Standards and to handi- Total cost: $ 110 million. 114 Projects Approved, Bank and IDA, by Sector

OMAN: Bank-$22 million. Public access of the country's highway network. Some 420 to telephone facilities will be extended in both kilometers of roads will be rehabilitated, main- rural and urban areas through the provision of tenance equipment purchased, and technical some 15,700 new direct exchange lines; tele- assistance and training provided to the Minis- phones for 14,000 new subscribers; 350 public try of Public Works and Transportation. Total call offices; about 6,000 lines of switching cost: $43.3 million. capacity; and the provision of vehicles, furni- DOMINICAN REPUBLIC: Bank - $35 ture, and related equipment. Total cost: $97.2 million. A second road maintenance and re- million. construction project includes the expansion of SRI LANKA: IDA-$30 million. Telecom- maintenance capacity, reconstruction of 150 munications services will be improved through kilometers of primary and secondary roads, the installation of about 17,000 lines of local completion of final design studies for an addi- automatic switching equipment, about 16,000 tional 300 kilometers of roads, a pilot rural new telephone connections, and 250 local call roads component using labor-intensive tech- offices. In addition, 500 long distance public niques, and a training program for personnel call offices will be established in rural areas of the Secretariat of Public Works. Total cost: that are currently without such service. Total $49 million. cost: $36.3 million. DOMINICAN REPUBLIC: Bank- $25 million. Two roads, whose combined length Transportation totals 150 kilometers, will be reconstructed- the Cruce de Guayacanes to Santiago de la BANGLADESH: IDA-$10 million. By- Cruz road, connecting the agricultural north- passes will be built around the towns of Chan- western area to Santiago, and the Azua- dina and Comilla to relieve traffic congestion Barahona road linking the southwestern part and reduce vehicle operating costs between of the country to the capital city. The project Dacca and Chittagong. Equipment and spare supports the government's hurricane emer- parts will be provided, as well as consultant gency reconstruction program. Total cost: services to supervise construction. Total cost: $38.8 million. $13.6 million. ECUADOR: Bank -$55 million. Some BRAZIL: Bank-$159 million. More than 90,000 farm families will have better access to 2 million people, mostly urban poor, will bene- markets and to health and educational facili- fit from the construction of a mass transit rail ties as a result of the building or improvement system in the state of Rio Grande do Sul be- of about 1,500 kilometers of secondary and tween the capital city of Porto Alegre, located feeder roads in three coastal provinces. A four- in the south, and Sapucaia in the north. Em- year highway maintenance program and tech- ployment growth will be promoted along this nical assistance for transportation planning north-south corridor and both vehicle operat- and training are included. Total cost: $164 ing costs and travel time will be reduced. Total million. cost: $312.8 million. GHANA: IDA-$25 million. Spare parts, CONGO, PEOPLE'S REPUBLIC OF THE: materials, tools, and other equipment will be IDA-$30 million. Supplementary funds for provided for the routine maintenance of all a second railway project, approved in April public roads for the next two years; for peri- 1976, will be made available for the comple- odic maintenance of about 6,000 kilometers tion of the realignment of 88 kilometers of of main and feeder roads; and for the remo- railway serving four West African countries, bilization of part of the domestic trucking thus making it possible for the government to fleet. Technical assistance and a line of credit develop forestry resources in the northern part will be made available to the Bank for Housing of the country. Co-financing is being provided and Construction. Total cost: $38.6 million. by the EDF ($25.7 million), the SFD ($23 mil- GUATEMALA: Bank-$ 17 million. lion), the KFAED ($20 million), Italy ($9.5 Equipment, technical assistance, and training million), the Iraqi Fund ($8 million), the services will be provided to help implement CCCE ($7.8 million), FAC ($6.7 million), the government's highway maintenance pro- Qatar ($6 million), the OPEC Fund for Inter- gram for the period, mid-1981 to mid-1985. national Development ($5 million), CIDA ($4.1 Total cost: $18.9 million. million), and the AfDB ($3.7 million). Total GUINEA: IDA-$13 million. About 1,500 cost: $167.6 million. kilometers of roads will be rehabilitated and COSTA RICA: Bank-$30 million. The 4,600 kilometers maintained; highway equip- project is part of a five-year program for ment, spare parts, fuel, and supplies will be maintenance, rehabilitation, and improvement purchased; and technical assistance and con- Transportation 115 sultant services will be provided to the Min- PHILIPPINES: Bank-$62 million. The istry of Public Works. Co-financing is being construction and improvement of about 730 provided by BADEA ($6 million) and the kilometers of rural roads in six provinces will EEC Special Action Account ($4 million). provide better access to markets for local farm- Total cost: $31.9 million. ers and the improvement of 150 kilometers of KOREA, REPUBLIC OF: Bank-$94 mil- national and provincial roads in Occidental lion. Equipment, materials, technical assist- Mindoro will help give access to an area that ance, and training for the Korean National is currently only reached by sea. Technical as- Railway (KNR) will be financed to assist its sistance and consultant services are included. effort to meet the anticipated growth in traffic Total cost: $104.9 million. load; reduce operating and maintenance costs; ROMANIA: Bank-$100 million. A canal and to initiate the changes needed to transform 64 kilometers long will be constructed from KNR into a public corporation. Total cost: Cernavoda on the Danube to Constanta-Agigea $604.2 million. on the Black Sea to permit greater use of MOROCCO: Bank-$62 million. By Romania's cost-efficient, energy-saving inland strengthening and resurfacing about 1,700 waterway system. The poor Dobrogea region, kilometers of primary and secondary roads through which the canal runs, will be provided and financing a three and one-half year pro- with irrigation and power facilities. Other gram for routine road maintenance, the long- Danubian countries will benefit as well, and term process of institution building supported the canal will become an integral part of the by two Bank-assisted projects will be con- European waterway system when the Rhine- tinued. Technical assistance is included. Total Main-Danube canal is completed in 1984. cost: $199 million. Total cost: $1,750 million. NIGERIA: Bank-$108 million. To assist SENEGAL: Bank-$10 million; IDA- in alleviating some critical weaknesses in road $28 million. About 200 kilometers of primary planning, design, construction, and mainte- paved roads will be rehabilitated; the Louga- nance activities of the federal highway author- Dahra road, which provides access to a peanut- ity, about 520 kilometers of federal roads will producing area and several villages, will be be strengthened, economic and engineering constructed to two-lane paved standards; road studies of a major north-south road will be maintenance staff will be trained; and techni- carried out, and a survey will be made to estab- cal assistance will be provided to help improve lish priorities for improvements to the federal the government's capacity to maintain the trunk road network. Total cost: $178 million. road system. Co-financing ($12.9 million) is PAKISTAN: IDA-$50 million. A third being provided by the OECF. Total cost: highway project will help meet transport de- $59.5 million. mand and lower vehicle operating costs by SRI LANKA: IDA-$53 million. Through rehabilitating and improving about 280 kilo- improved maintenance procedures and the meters of roads, improving road maintenance procurement of additional buses and spare zapabilities, and assisting the domestic con- parts, service along major bus routes will be struction industry. Technical assistance and improved; vehicle operating costs will be re- training are included. Co-financing ($100,000) duced; and, by 1983, government subsidies for -is being provided by the UNDP. Total cost: public bus operations will be eliminated. Total $93.2 million. cost: $86.4 million. PAPUA NEW GUINEA: Bank-$17 mil- TANZANIA: IDA-$2.5 million. Final en- ion; IDA-$13 million. Completion of the gineering designs, cost estimates, and tender final link in the highway from the port of Lae documents required for civil works for a pro- to Toboga will provide the people living in the posed harbors project that will be a major step Central Highlands with better and lower-cost towards the development and modernization access to the port and will help expand agri- of the port of Dar es Salaam will be financed. cultural production in the area. Total cost: Total cost: $3 million. $42.4 million. TUNISIA: Bank-$42.5 million. A third PHILIPPINES: Bank-$67 million. By im- project assisting the development of the ports proving port operations and increasing port of La Goulette and Sfax calls for the construc- productivity through reduced congestion, car- tion of quays, jetties, storage areas, and port go losses, and handling costs, a more economi- administration ancillary buildings; the dredg- cal means of transporting agricultural products ing of an access channel; and the purchase of grown in the hinterland for domestic and for- cargo-handling and workshop equipment to eign markets will be made possible. Total cost: help accommodate traffic up to the year 2000. S165 million. The efficiency of port operations will be in- 116 Projects Approved, Bank and IDA, by Sector creased and urban traffic congestion will be chase of locomotives, wagons, and spare parts alleviated. Technical assistance is included. for the Zambia Railways Board will be Total cost: $125.8 million. financed to help handle the increasing traffic TUNISIA: Bank-$36.5 million. Manage- demand through 1985. Co-financing will be ment of the country's highway network will provided by the KfW ($23.3 million), the be improved through a fourth highway project OECF ($16.3 million), the ODA ($14 million), that calls for better highway maintenance, CIDA ($13 million), the AfDB ($9.7 mil- road rehabilitation, training of highway de- lion), the EDF ($8.4 million), the EEC Spe- partment staff, provision of equipment, and cial Action Account ($5 million), and the technical assistance. Total cost: $92.1 million. OPEC Fund for International Development URUGUAY: Bank-$50 million. Port op- ($4.5 million). Total cost: $184.3 million. erating and maintenance costs will be reduced, as well as ship servicing and waiting times for ocean carriers at the port of Montevideo, Urbanization through the purchase of two harbor tugs, dredging and other equipment, the modifica- BURUNDI: IDA-$15 million. The living tion of an existing wharf to serve as a con- conditions of some 118,000 people living in tainer and bulk cargo terminal, and the Bujumbura will be improved through the pro- upgrading of sheds for general cargo opera- vision of basic infrastructure in seven neigh- tions. Total cost: $58.4 million. borhoods; the preparation of about 780 sites YUGOSLAVIA: Bank-$ 125 million. and services plots; loans for house construction Through the construction of six sections of and improvement; training of artisans; the road (about 164 kilometers), procurement of construction of three primary schools; and im- road maintenance and load monitoring equip- provement in the city's capacity to maintain ment, technical assistance, and a highway streets, buildings, and other local facilities. safety program, traffic operations on the Trans- Total cost: $16.7 million. Yugoslav highway-the country's main trans- ECUADOR: Bank-$31 million. Loans and port artery-will be improved; the heavy technical assistance will be provided to small- accident toll on life and property reduced; and scale enterprises; slums will be upgraded; and better access to international markets made loans will be made available for housing con- available to several industrial centers and struction and improvement. More than farming communities. Total cost: $785.2 100,000 people living in Guayaquil, most of million. whom have incomes below the absolute poverty YUGOSLAVIA: Bank-$50 million. Port level, are to benefit. Total cost: $51.6 million. facilities, equipment, and services that were INDIA: IDA-$56 million. Through better damaged by the earthquakes of April and May management of local transport operators, ex- 1979 at the port of Bar-a major seaport pansion and rehabilitation of existing transport servicing Belgrade and the surrounding indus- facilities, easing of traffic congestion, and trial and agricultural areas-will be rehabili- improvement in road conditions, the efficiency tated and restored. Total cost: $124.8 million, of transport services in Calcutta will be im- YUGOSLAVIA: Bank-$21 million. About proved. Technical assistance is included. Total 560 kilometers of main and regional roads that cost: $121.7 million. were damaged during the earthquakes of April and May 1979 in southwestern Monte- KOREA, REPUBLIC OF: Bank-$65 mil- negro will be restored. The restored road net- lion. This multipurpose project provides for work, in addition to facilitating rehabilitation more than 3,900 residential plots for low- of the stricken area, will stimulate trade, create income families; 200 hectares of serviced in- employment, and help integrate this less- dustrial land to accommodate about 18,000 developed region with international market employees; improved water supply systems in centers. Total cost: $63.6 million. two cities and on one island; improved trans- YUGOSLAVIA: Bank-$14 million. The port linkages to three islands; and a shrimp Railway Transport Organization of Titograd storage facility benefiting some 6,500 fisher- will be assisted in restoring about 80 kilome- man families. Total cost: $154.8 million. ters of railway lines that were damaged in the LESOTHO: IDA-$6 million. This first earthquakes of April and May 1979. Total IDA-assisted urban development project in the cost: $52.3 million. country consists of a program of sites and ZAMBIA: Bank-$25 million; IDA- services and urban upgrading that will provide $15 million. About 112 kilometers of track essential urban services in low-income areas will be renovated and extended, and the pur- of Maseru; loans for home improvement; and Water Supply and Sewerage 117 construction of classrooms, health and child Water Supply and Sewerage care centers, and retail markets and shops. Technical assistance is included. Total cost: ALGERIA: Bank-$5 million. Studies to $7 million. assess and meet urban, industrial, and agricultural water requirements in greater Algiers and NICARAGUA: IDA-$22 million. Assis- the surrounding regions will be carried out. A tance will be provided for the rehabilitation of new source of water for the greater Algiers six cities that were heavily damaged during metropolitan area will be designed and a mas- the recent civil war. Infrastructure and urban ter plan for the distribution of potable water in services will be repaired, loans will be made the same area will be carried out. Total cost: available to small-scale firms for construction $7 million. and repair of commercial and industrial build- BANGLADESH: IDA-$20 million. A ings and the replacement of equipment and water intake and treatment plant, tubewells, working capital, and Managua's public trans- and associated distribution works will be con- port system will be rehabilitated. Total cost: structed and an iron removal plant and pump- $26 million. ing station upgraded to help meet the need for NIGERIA: Bank-$17.8 million. The liv- additional supplies of water for Chittagong's ing conditions of about 74.000 people living in growing population through 1990. About Bauchi state, with incomes below the urban 14,000 service connections with meters will be poverty level, will be improved by providing provided, as well as 1,500 public standpipes electricity, drainage, water supply, education, and two public water concessions. In addition, health, and refuse disposal facilities. In addi- a training program and the preparation of a tion, some 4,000 residential sites and serviced sewerage/sanitation plan are included. Total plots will be developed, as well as a small-scale cost: $39.7 million. industry site that, when fully operational, will BOLIVIA: IDA-$9 million. Safe water provide for about 1,500 jobs. Total cost: $36.6 and sewerage facilities will be made available million. to more than 100,000 people and about 66,000 PANAMA: Bank-$35 million. About people, respectively, living in the city of Santa 4,000 low-income families living in Colon and Cruz de la Sierra. Technical assistance, con- in Puerto Escondido will benefit through the sisting of training for the staff of Servicios de construction of houses, a regional educational Agua Potable y Alcantarillado de Santa Cruz center, recreation facilities, a retail shopping and consultant services to strengthen its orga- area, and a bus terminal, and through the pro- nization and management, as well as studies to vision of home improvement credits. Some determine future sources of water, will be pro- 8,000 new jobs will also be created. Co-financ- vided. Total cost: $17.3 million. ing ($70 million) is expected to be provided by BOTSWANA: Bank-$4.4 million. Through the Industrial Bank of Japan, Limited. Total the construction of 26 kilometers of pipeline, cost: $133.3 million. pumping stations, and treatment works, and procurement of miscellaneous supporting fa- PHILIPPINES: Bank-$72 million. cilities and equipment, Francistown's water Through comprehensive upgrading and pro- supply will be improved and expanded to meet vision of tenure in 13 priority areas, provision water supply requirements through 1989, bene- of basic services (drainage, water supply, sani- fiting some 27,000 people. Water quality will tation, and streets and footpaths) in another be raised to meet internationally accepted stan- 15 areas, sites and services on 79 hectares, a dards and preliminary investigations for water small business assistance and manpower train- supply expansion in the Gaborone-Lobatse ing program, and technical assistance, the liv- area will be financed. Total cost: $6.7 million. ing conditions of some 470,000 poor people in BRAZIL: Bank-$139 million. Water sup- metropolitan Manila will be improved. Total ply services will be made available in Minas cost: $120 million. Gerais state to 1.9 million people and sewerage THAILAND: Bank-$29 million. Housing services to 1.1 million people. In addition, the for about 12,000 families living in Bangkok water supply currently serving 3.1 million will be improved and sites and services will be people will be improved and made safe. Re- provided for some 3,500 residential and com- lated studies and technical assistance are in- mercial units and for 3,250 low-income hous- cluded. Total cost: $446 million. ing units. Small-scale industry development in BRAZIL: Bank-$130 million. Water sup- five regional cities, benefiting more than 18,000 ply services will be extended to some 1.8 mil- households, will also be provided. Technical as- lion people and sewerage services to 900,000 sistance is included. Total cost: $56.4 million. people in the states of Parana, Santa Catarina, 118 Projects Approved, Bank and IDA, by Sector and Rio Grande do Sul through a project that SRI LANKA: IDA-$30 million. Through represents the least-cost solution to improving the construction of a pumping station and the health and environment of the populations sewage treatment and transmission facilities in the three states. Total cost: $439 million. on the Kelani river, the incidence of water- CAMEROON: Bank-$21 million. Safe borne disease will be reduced and some 1.5 water will be made available to as many as 1.2 million people living in the greater Colombo million people through the improvement and area will have access to safe water. Co-financ- extension of water supply systems in 13 secon- ing ($30 million) is being provided by the SFD. dary centers and in the cities of Douala and Total cost: $94 million. Yaounde. Co-financing ($15 million) is being THAILAND: Bank-$40 million. As many provided by the CDC. Total cost: $51.4 million, as 1 million people will benefit from the im- CHilE:on Bk-3milo.Truhte provement and expansion of water supply sys- CHILE: Bank-$38 million. Through the troems n10prvncipanl towns, and an additional improvement and expansion of water treat- tesin10 provincill towns, anda addition metaddstribto faiiis som 686,000^r 500,000 people will receivewater servicefor people lng di theiSatiago mtro tan a8re the first time. Technical assistance is being pro- people lavccg the Sanfetiwater through house vided to the Provincial Water Works Authority wil ccsshve o afewaer,thoug hus to strengthen its management and operations. connections, for the first time. A sewerage mas- to str its mana ter plan will be developed to assess river pollu- Total cost $59.3 mllion. tion and to help meet the city's needs through TURKEY: Bank-$6 million. The govern- the year 2000. In addition, a nationwide ment will be assisted in its effort to reduce a chlorination program, benefiting 1.8 million serious air pollution problem in Ankara by an people, 21 % of whom have incomes less than engineering loan that provides technical and one-third the national average, will improve financial assistance for investigating methods water quality in 36 other cities. Total cost: of manufacturing smokeless fuel from lignite $119.64 million. and developing other possible technologies to INDIA: IDA-$80 million. Water supply provide clean fuel. Total cost: $11.25 million. facilities will be improved and expanded in YEMEN ARAB REPUBLIC: IDA-$12 four cities in Rajasthan state to benefit some million. By providing safe water and sewage 2.4 million people; the sewerage systems in facilities to more than 130,000 people living in three of these cities will be extended; and about Ibb and Dhamar, the health and environmental 2,000 villages will be provided with safe piped conditions of the population of the two cities water for the first time. Total cost: $164 will be improved. Technical assistance and million.A training for the National Water and Sewerage MADAGASCAR: IDA-$20.5 million. Authrtstfaeinld.Coiacngs Piped water supply and sanitation facilities will hority staff are included Co-financing is beprovided to about 200,000 low-income peo- million), the Netherlands ($6 million), and the ple living in Antananarivo. The Malagasy AFESD ($10 million). Total cost: $91.9 Electricity and Water Company and the Muni- .l. cipality of Antananarivo will be assisted in mllion. their efforts to modernize facilities, improve YEMEN, PEOPLE'S DEMOCRATIC RE- services, and strengthen management opera- PUBLIC OF: IDA-$13.2 million. This first tions. Total cost: $33.69 million. stage of a long-term water supply master plan PHILIPPINES: Bank-$63 million. By will make up the current 30% deficit and help constructing a system of combined sewers in meet the demand for water to 1987. Through low-income areas of Manila and a sanitary an expansion of the system into the poorer sewer system in two poor and densely popu- areas of the capital city, low-income residents lated areas of central Manila, the health and can be directly connected to the public system. environmental conditions of about 3 million Co-financing is expected from the AFESD people will be improved. Co-financing ($42 ($12 million), the IsDB ($5.5 million), and the million) is being provided by the AsDB. Total OPEC Fund for International Development cost: $177.4 million. ($4 million). Total cost: $39.2 million. Projects Approved, by Region 119

Projects Approved for Bank and IDA Assistance in Fiscal 1980, by Region July 1, 1979-June 30, 1980 (US$ millions.)

Bank loans IDA credits Total Region Country Number Amount Number ' Amount Number 2 Amount

Eastern Africa Botswana ...... 2 $ 14.4 - $ - 2 $ 14.4 Burundi ...... - - 2 30.0 2 30.0 Comoros ...... - - 1 5.2 1 5.2 Kenya ...... 2 70.0 5 122.0 7 192.0 Lesotho ...... - - 2 10.0 2 10.0 Madagascar ...... - - 4 48.0 4 48.0 Malawi ...... - - 1 13.8 1 13.8 Mauritius ...... 1 6.0 - - 1 6.0 Rwanda ...... - - 1 21.0 1 21.0 Somalia ...... - - 2 18.0 2 18.0 Sudan ...... - - 3 170.0 3 170.0 Swaziland ...... 1...... 10.1 - - 1 10.1 Tanzania ...... 1 25.0 6 109.5 7 134.5 Uganda ...... - - 1 72.5 1 72.5 Zaire ...... - - 2 29.5 2 29.5 Zambia ...... 1 25.0 - 15.0 1 40.0 Total ...... 8 $ 150.5 30 $ 664.5 38 $ 815.0 Western Africa Benin ...... - $ - 1 $ 10.0 1 $ 10.0 Cameroon ...... 2 37.5 1 31.0 3 68.5 Congo, People's Republic of the ...... - - 1 35.0 1 35.0 Ghana ...... - - 2 54.5 2 54.5 Guinea ...... - - 2 23.4 2 23.4 Ivory Coast ...... 2 33.4 - - 2 33.4 Liberia ...... 1 12.0 - - 1 12.0 Mali ...... - - 1 8.0 1 8.0 Mauritania ...... 1 60.0 - - 1 60.0 Niger ...... - - 2 36.7 2 36.7 Nigeria ...... 5 286.3 - - 5 286.3 Senegal ...... 1...... 10.0 2 42.3 3 52.3 Sierra Leone ...... - - 1 2.5 1 2.5 Togo ...... - - 1 11.0 1 11.0 Upper Volta ...... - - 3 35.0 3 35.0 Western Africa Region ...... _ - 1 3.0 1 3.0 Total ...... 12 $ 439.2 18 $ 292.4 30 $ 731.6 East Asia and Pacific Fiji ...... 1 $ 15.5 - $ - 1 $ 15.5 Indonesia ...... 6 580.0 4 174.0 10 754.0 Korea, Republic of ...... 8 544.0 - - 8 544.0 Lao People's Democratic Republic .... - - 1 13.4 1 13.4 Malaysia ...... 1...... 50.0 - - 1 50.0 Papua New Guinea ...... 1 17.0 - 13.0 1 30.0 Philippines ...... 8 412.0 - - 8 412.0 Thailand ...... 9 542.0 - - 9 542.0 Western Samoa ...... - - 1 8.0 1 8.0 Total ...... 34 $2,160.5 6 $ 208.4 40 $2,368.9 South Asia Bangladesh ...... - $ - 10 $ 267.0 10 $ 267.0 Burma ...... - - 3 160.0 3 160.0 India ...... 2 125.0 14 1,535.0 16 1,660.0 Nepal ...... - - 2 33.0 2 33.0 Pakistan ...... - - 4 165.0 4 165.0 Sri Lanka ...... - - 6 151.5 6 151.5 Total ...... 2 $ 125.0 39 $2,311.5 41 $2,436.5 (continued) 120 Projects Approved, by Region

Projects Approved for Bank and IDA Assistance in Fiscal 1980, by Region (continued) July 1, 1979-June 30, 1980 (US$milions.)

Bank loans' IDA credits Total' Region 2 Country Number Amount Number 2 Amount Number 2 Amount Europe, Middle East, and North Africa Algeria ...... 4 $ 120.0 - $ - 4 $ 120.0 Cyprus ...... 1 16.0 - - 1 16.0 Egypt, Arab Republic of ...... 5 206.0 2 215.0 7 421.0 Jordan ...... 2 29.0 - - 2 29.0 Morocco ...... 4 204.0 - - 4 204.0 Oman ...... 1 22.0 - - 1 22.0 Portugal ...... 3 134.0 - - 3 134.0 Romania ...... 4 325.0 - - 4 325.0 Tunisia ...... 5 171.0 - - 5 171.0 Turkey ...... 7 600.0 - - 7 600.0 Yemen Arab Republic ...... - - 3 34.5 3 34.5 Yemen, People's Democratic Republic of - - 2 22.2 2 22.2 Yugoslavia ...... 6 347.0 - - 6 347.0 Total ...... 42 $2,174.0 7 $ 271.7 49 $ 2,445.7 Latin America and the Caribbean Argentina ...... 2 $ 237.0 - $ - 2 $ 237.0 Barbados ...... 1 10.0 - - 1 10.0 Bolivia ...... 1 50.0 2 25.0 3 75.0 Brazil ...... 7 695.0 - - 7 695.0 Caribbean Region ...... 1 23.0 - 7.0 1 30.0 Chile ...... 1 38.0 - - 1 38.0 Colombia ...... 6 518.0 - - 6 518.0 Costa Rica ...... 1 30.0 - - 1 30.0 Dominican Republic ...... 4 120.0 - - 4 120.0 Ecuador ...... 3 106.0 - - 3 106.0 Guatemala ...... 1 17.0 - - 1 17.0 Honduras ...... 3 128.0 - 25.0 3 153.0 Mexico ...... 3 300.0 - - 3 300.0 Nicaragua ...... 1 20.0 1 32.0 2 52.0 Panama ...... 2 58.0 - - 2 58.0 Paraguay ...... 2 36.0 - - 2 36.0 Peru ...... 4 111.0 - - 4 111.0 Uruguay ...... 3 98.0 - - 3 98.0 Total ...... 4...... 46 $2,595.0 3 $ 89.0 49 $ 2,684.0 GRAND TOTAL ...... 144 $7,644.2 103 $3,837.5 247 $11,481.7

'All supplements and amendments are included in amounts, but only those qualifying as separate lending operations are included in number. 'Joint Bank/IDA operations are counted only once, as Bank operations. Projects Approved, by Purpose 121 Projects Approved for Bank and IDA Assistance in Fiscal 1980, by Purpose July 1, 1979-June 30, 1980 (US$ millions.)

Purpose, Bank IDA Total Agriculture and Rural Development Algeria-Irrigation, flood control ...... $ 8.0 $ - $ 8.0 Bangladesh-Irrigation, flood control ...... - 25.0 25.0 Bangladesh-Area development ...... - 25.0 25.0 Bangladesh-Irrigation, flood control ...... - 37.0 37.0 Bangladesh-Forestry ...... - 11.0 11.0 Brazil-Area development ...... 63.0 - 63.0 Burma-Irrigation, flood control ...... - 90.0 90.0 Burma-Forestry ...... - 35.0 35.0 Cameroon-Livestock ...... - 16.0 16.0 Cameroon-Perennial crops (rubber) ...... 16.5 15.0 31.5 Comoros-Area development ...... - 5.2 5.2 Dominican Republic-Perennial crops (sugar) ...... 35.0 - 35.0 Egypt, Arab Republic of-Crop processing, storage ...... - 45.0 45.0 Ghana-Area development ...... 29.5 29.5 Guinea-Perennial crops (rice) ...... - 10.4 10.4 Honduras-Agricultural credit ...... 20.0 5.0 25.0 India-Agriculture sector loan ...... - 54.0 54.0 India-Agricultural credit ...... - 250.0 250.0 India-Fisheries ...... - 20.0 20.0 India-Irrigation, flood control ...... - 18.0 18.0 India-Irrigation, flood control ...... - 175.0 175.0 India-Irrigation, flood control ...... - 210.0 210.0 India-Perennial crops (cashewnut) ...... - 22.0 22.0 India-Research and extension ...... - 10.0 10.0 India-Forestry ...... - 37.0 37.0 Indonesia-Area development ...... - 12.0 12.0 Indonesia-Irrigation, flood control ...... 116.0 - 116.0 Indonesia-Irrigation, flood control ...... - 45.0 45.0 Indonesia-Perennial crops (oil palm, food crops) ...... 42.0 - 42.0 Indonesia-Perennial crops (rubber) ...... 99.0 - 99.0 Indonesia-Perennial crops (rubber) ...... - 45.0 45.0 Indonesia-Research and extension ...... - 42.0 42.0 Indonesia-Research and extension ...... 35.0 30.0 65.0 Ivory Coast-Area development ...... 9.4 - 9.4 Kenya-Area development ...... - 46.0 46.0 Kenya-Area development ...... - 6.5 6.5 Kenya-Fisheries ...... - 10.0 10.0 Korea, Republic of-Crop processing, storage ...... 50.0 - 50.0 Lao People's Democratic Republic-Area development ...... - 13.4 13.4 Liberia-Perennial crops (oil palm) ...... 12.0 - 12.0 .C Malawi-Area development ...... - 13.8 13.8 Mexico-Irrigation, flood control ...... 160.0 - 160.0 Morocco-Area development ...... 34.0 34.0 Morocco-Crop processing, storage ...... 58.0 - 58.0 Nepal-Irrigation, flood control ...... - 16.0 16.0 Nepal-Forestry ...... - 17.0 17.0 Nicaragua-Crop processing, storage ...... 20.0 10.0 30.0 Niger-Area development ...... - 20.0 20.0 Niger-Area development ...... - 16.7 16.7 Nigeria-Area development ...... 28.0 - 28.0 Nigeria-Area development ...... 32.5 - 32.5 Pakistan-Agricultural credit ...... - 30.0 30.0 Peru-Area development ...... 15.0 - 15.0 Peru-Irrigation, flood control ...... 56.0 - 56.0 Philippines-Area development ...... 27.0 - 27.0 Philippines-Area development ...... 12.0 - 12.0 Philippines-Irrigation, flood control ...... 71.0 - 71.0 Portugal-Forestry ...... 50.0 - 50.0 Romania-Irrigation, flood control ...... 90.0 - 90.0 Romania-Livestock ...... 85.0 - 85.0

(continued) 122 Projects Approved, by Purpose

Projects Approved for Bank and IDA Assistance in Fiscal 1980, by Purpose (continued) July 1, 1979-June 30, 1980 (USS millions.) Purpose I Bank IDA Total

Agriculture and Rural Development (continued) Romania-Crop processing, storage ...... $ 50.0 $ - $ 50.0 Rwanda-Forestry ...... - 21.0 21.0 Senegal-Area development ...... - 11.0 11.0 Somalia-Area development ...... - 12.0 12.0 Sri Lanka-Perennial crops (rubber) ...... - 16.0 16.0 Sudan-Irrigation, flood control ...... - 40.0 40.0 Tanzania-Agricultural credit ...... - 10.0 10.0 Tanzania-Crop processing, storage ...... - 43.0 43.0 Tanzania-Perennial crops (tea) ...... - 14.0 14.0 Tanzania-Perennial crops (pyrethrum) ...... - 10.0 10.0 Thailand-Agricultural credit ...... 19.0 - 19.0 Thailand-Irrigation, flood control ...... 80.0 - 80.0 Thailand-Research and extension ...... 40.0 - 40.0 Tunisia-Agricultural credit ...... 30.0 - 30.0 Tunisia-Irrigation, flood control ...... 25.0 - 25.0 Turkey-Livestock ...... 51.0 - 51.0 Upper Volta-Irrigation, flood control ...... - 6.5 6.5 Upper Volta-Forestry ...... - 14.5 14.5 Uruguay-Livestock ...... 24.0 - 24.0 Western Samoa-Area development ...... - 8.0 8.0 Yemen Arab Republic-Fisheries ...... 17.0 17.0 Yemen Arab Republic-Area development ...... - 5.5 5.5 Yugoslavia-Agricultural credit ...... 86.0 - 86.0 Yugoslavia-Irrigation, flood control ...... 51.0 - 51.0 Zaire-Area development ...... - 11.0 11.0 Total ...... $1,700.4 $1,758.0 $ 3,458.4

Development Finance Companies Brazil ...... $ 58.0 $ - $ 58.0 Caribbean Region ...... 23.0 7.0 30.0 Colombia ...... 150.0 - 150.0 Egypt, Arab Republic of ...... 30.0 - 30.0 Egypt, Arab Republic of ...... 50.0 - 50.0 India ...... 100.0 - 100.0 Jordan ...... 10.0 - 10.0 Kenya ...... 30.0 - 30.0 Korea, Republic of ...... 60.0 - 60.0 Korea, Republic of ...... 30.0 - 30.0 Lesotho ...... - 4.0 4.0 Madagascar ...... - 5.0 5.0 Mauritius ...... 6.0 - 6.0 Pakistan ...... - 40.0 40.0 Paraguay ...... 31.0 - 31.0 Tanzania ...... 25.0 - 25.0 Turkey ...... 80.0 - 80.0 Turkey ...... 60.0 - 60.0 Zaire ...... - 18.5 18.5 Total ...... $ 743.0 $ 74.5 $ 817.5

Education Algeria ...... $ 87.0 $ - $ 87.0 Bangladesh ...... - 40.0 40.0 Botswana ...... 10.0 - 10.0 Brazil ...... 32.0 - 32.0 Burundi ...... - 15.0 15.0 Ivory Coast ...... 24.0 - 24.0 Jordan ...... 19.0 - 19.0 Korea, Republic of ...... 100.0 - 100.0 Philippines ...... 38.0 - 38.0 Portugal ...... 40.0 - 40.0 Projects Approved, by Purpose 123

I'urpose Bank IDA Total Swaziland ...... $ 10.1 $ - $ 10.1 Togo ...... - 11.0 11.0 Upper Volta ...... - 14.0 14.0 Total ...... $ 360.1 $ 80.0 $ 440.1 i:nergy Oil, Gas, and Coal Argentina ...... $ 27.0 $ - $ 27.0 Bolivia ...... - 16.0 16.0 Congo, People's Republic of the ...... 5.0 5.0 Egypt, Arab Republic of . . ... - 50.0 50.0 Honduras ...... 3.0 - 3.0 Madagascar ...... - 12.5 12.5 Morocco ...... 50.0 - 50.0 Peru ...... 32.5 - 32.5 Somalia ...... - 6.0 6.0 Tanzania ...... - 30.0 30.0 Thailand ...... 107.0 - 107.0 Thailand ...... 72.0 - 72.0 Tunisia ...... 37.0 - 37.0 Yemen, People's Democratic Republic of ...... - 9.0 9.0 Subtotal ...... $ 328.5 $ 128.5 $ 457.0

Power Argentina ...... $ 210.0 $ - $ 210.0 Brazil ...... 114.0 - 114.0 Colombia ...... 87.0 - 87.0 Colombia ...... 125.0 - 125.0 Cyprus ...... 16.0 - 16.0 Egypt, Arab Republic of ...... 7.0 120.0 127.0 Fiji ...... 15.5 - 15.5 Honduras ...... 105.0 20.0 125.0 India ...... - 300.0 300.0 India ...... 25.0 225.0 250.0 Indonesia ...... 253.0 - 253.0 Kenya ...... 40.0 - 40.0 Korea, Republic of ...... 115.0 - 115.0 Madagascar ...... - 10.0 10.0 Malaysia ...... 50.0 - 50.0 Nigeria ...... 100.0 - 100.0 Pakistan ...... - 45.0 45.0 Panama ...... 23.0 - 23.0 Senegal ...... - 3.3 3.3 Sri Lanka ...... 19.5 19.5 Sudan ...... - 65.0 65.0 Thailand ...... 80.0 - 80.0 Thailand ...... 75.0 - 75.0 Turkey ...... 120.0 - 120.0 Uruguay ...... 24.0 - 24.0 Subtotal ...... $1,584.5 $ 807.8 $ 2,392.3 Total ...... $1,913.0 $ 936.3 $ 2,849.3

Inidustry Bangladesh-Fertilizer and chemicals ...... $ - $ 29.0 $ 29.0 Colombia-Mining, other extractive ...... 80.0 - 80.0 Egypt, Arab Republic of-Pulp and paper ...... 50.0 - 50.0 Egypt, Arab Republic of-Textiles ...... 69.0 - 69.0 Mauritania-Mining, other extractive ...... 60.0 - 60.0 Peru-Fertilizer and chemicals ...... 7.5 - 7.5 (continued) 124 Projects Approved, by Purpose

Projects Approved for Bank and IDA Assistance in Fiscal 1980, by Purpose (continued) July 1, 1979-June 30, 1980 (US$ miHlions.) Purpose Bank IDA Total Industry(continued) Portugal-Pulp and paper ...... $ 44.0 $ - $ 44.0 Turkey-Textiles ...... 83.0 - 83.0 Total ...... $ 393.5 $ 29.0 $ 422.5 Nonproject Bangladesh ...... $ - $ 50.0 $ 50.0 Bolivia ...... 50.0 - 50.0 Dominican Republic ...... 25.0 - 25.0 Kenya ...... - 55.0 55.0 Paraguay ...... 5.0 - 5.0 Sudan ...... - 65.0 65.0 Turkey ...... 200.0 - 200.0 Uganda ...... - 72.5 72.5 Total ...... $ 280.0 $ 242.5 $ 522.5 Population, Health, and Nutrition India ...... $ - $ 32.0 $ 32.0 India ...... - 46.0 46.0 Indonesia ...... 35.0 - 35.0 Korea, Republic of ...... 30.0 - 30.0 Total ...... $ 65.0 $ 78.0 $ 143.0 Small-scale Enterprises Algeria ...... $ 20.0 $ - $ 20.0 Bangladesh ...... - 20.0 20.0 Barbados ...... 10.0 - 10.0 Benin ...... - 10.0 10.0 Colombia ...... 32.0 - 32.0 Ecuador ...... 20.0 - 20.0 Mali ...... - 8.0 8.0 Mexico ...... 100.0 - 100.0 Mexico ...... 40.0 - 40.0 Total ...... $ 222.0 $ 38.0 $ 260.0 Technical Assistance Kenya ...... $ - $ 4.5 $ 4.5 Sierra Leone ...... - 2.5 2.5 Sri Lanka ...... - 3.0 3.0 Western Africa Region ...... - 3.0 3.0 Total ...... $ - $ 13.0 $ 13.0 Telecommunications Burma ...... $ - $ 35.0 $ 35.0 Colombia ...... 44.0 - 44.0 Oman ...... 22.0 - 22.0 Sri Lanka ...... - 30.0 30.0 Total ...... $ 66.0 $ 65.0 $ 131.0 Transportation Bangladesh-Highways ...... $ - $ 10.0 $ 10.0 Brazil-Railways ...... 159.0 - 159.0 Congo, People's Republic of the-Railways i...... - 30.0 30.0 Costa Rica-Highways ...... 30.0 - 30.0 Dominican Republic-Highways ...... 35.0 - 35.0 Dominican Republic-Highways . . 25.0 - 25.0 Ecuador-Highways ...... 55.0 - 55.0 Ghana-Highways ...... - 25.0 25.0 Guatemala-Highways ...... 17.0 - 17.0 Guinea-Highways ...... - 13.0 13.0 Korea, Republic of-Railways ...... 94.0 - 94.0 Morocco-Highways ...... 62.0 - 62.0 Nigeria-Highways ...... 108.0 _ 108.0 I'rojects Approved, by Purpose 125

i'urpose Bank IDA Total

Pakistan-Highways ...... $ - $ 50.0 $ 50.0 Papua New Guinea-Highways ...... 17.0 13.0 30.0 Philippines-Highways ...... 62.0 - 62.0 Philippines-Ports and waterways ...... 67.0 - 67.0 Romania-Ports and waterways ...... 100.0 - 100.0 Senegal-Highways ...... 10.0 28.0 38.0 Sri Lanka-Highways . . ... - 53.0 53.0 Tanzania-Ports and waterways ...... - 2.5 2.5 Tunisia-Highways ...... 36.5 - 36.5 Tunisia-Ports and waterways ...... 42.5 - 42.5 Uruguay-Ports and waterways ...... 50.0 - 50.0 Yugoslavia-Highways ...... 125.0 - 125.0 Yugoslavia-Highways ...... 21.0 - 21.0 Yugoslavia-Ports and waterways ...... 50.0 - 50.0 Yugoslavia-Railways ...... 14.0 - 14.0 Zambia-Railways ...... 25.0 15.0 40.0 Total ...... $1,205.0 $ 239.5 $ 1,444.5 UJrbanization Burundi ...... $ - $ 15.0 $ 15.0 Ecuador ...... 31.0 - 31.0 India ...... - 56.0 56.0 Korea, Republic of ...... 65.0 - 65.0 Lesotho ...... - 6.0 6.0 Nicaragua ...... - 22.0 22.0 Nigeria ...... 17.8 - 17.8 Panama ...... 35.0 - 35.0 Philippines ...... 72.0 - 72.0 Thailand ...... 29.0 - 29.0 Total ...... $ 249.8 $ 99.0 $ 348.8 Vater Supply and Sewerage Algeria ...... $ 5.0 $ - $ 5.0 Bangladesh ...... - 20.0 20.0 Bolivia ...... - 9.0 9.0 Botswana ...... 4.4 - 4.4 Brazil ...... 130.0 - 130.0 Brazil ...... 139.0 - 139.0 Cameroon ...... 21.0 - 21.0 Chile ...... 38.0 - 38.0 India ...... - 80.0 80.0 Madagascar ...... - 20.5 20.5 Philippines ...... 63.0 - 63.0 Sri Lanka ...... - 30.0 30.0 Thailand ...... 40.0 - 40.0 Turkey ...... 6.0 - 6.0 Yemen Arab Republic ...... - 12.0 12.0 Yemen, People's Democratic Republic of ...... - 13.2 13.2 Total ...... $ 446.4 $ 184.7 $ 631.1 CGRAND TOTAL ...... $7,644.2 $3,837.5 $11,481.7

Note: For additional details, see Bank/IDA Appendices 3 and 4, Statement of Loans Approved during Fiscal Year 1980 and Statement of Development Credits Approved during Fiscal Year 1980, respectively. 'Operations have been classified by the major purpose they finance. Many projects include activity in more than one sector or subsector. 2Supplementary financing to a previous loan, not counted as a separate lending operation.

127 ;Statistical Annex

Page GeneralNotes to AnnexTables 128 Trable 1 SelectedEconomic Indicators, Regional Summary 130 2 ExternalPublic Debt Outstanding (Including Undisbursed), by Region,1972-78 132 3 ExternalPublic Debt Outstanding, by Countryand Typeof Creditor,December 31, 1978 134 4 ServicePayments on ExternalPublic Debt as Percentageof Exportsof Goodsand Services, 1972-78 136 5 ProjectedDebt Service on ExternalPublic Debt Outstanding, byRegion and Type of Creditor,as of December31, 1978 138 6 ExternalResource Flows and Service Payments on ExternalPublic Debt, by Region,1972-78 140 7 AverageTerms of LoanCommitments and Grant Element of Loansand Grants, by Region,1972-78 141 8 Foreignand International Bond Issues, by BorrowerEntity, 1977-79 and FirstHalf 1980 142 9 PublicizedEurocurrency Credits, by BorrowerEntity, 1977-79and First Half 1980 145 10 AverageTerms of EurocurrencyCredits for SelectedDeveloping Countries, Third Quarter 1978 to SecondQuarter 1980 148 128 Statistical Annex

General Notes to Annex Tables

Thetables of this Annexpresent data on selected Nicaragua,Panama, Paraguay, Peru, Trinidad and economicindicators, external public debt, and inter- Tobago,Uruguay, Venezuela. nationalcapital markets. As in pastAnnual Reports, mostof the tablesare organized on geographiclines. NorthAfricaandMiddleEast-Algeria,Bahrain, Egypt In Table1, the basicseries on selectedeconomic (Arab Republicof), Jordan,Lebanon, Morocco, indicatorsis basedon datastored in the IBRDSocio- SyrianArab Republic, Tunisia, Yemen Arab Re- economicData Bank, which are mainly obtained from public,Yemen (People's Democratic Republic of). WorldBank country economic reports, supplemented SoutbAsia-Afghanistan,Bangladesh, Burma, India, by datafrom nationaland other internationalpubli- Nepal,Pakistan, Sri Lanka. cations.The indicators presented in this tableare the sameas thoseof last year. More advancedMediterranean countries - Cyprus, In Tables2through7, the principal source of dataon Greece,Israel, Malta, Portugal, Spain, Turkey, externaldebt is informationreceived by the World Yugoslavia. Bank from its membercountries. These data are checkedwith and supplementedby informationfrom Notall of the 94countries or otherareas have been severalother sources, primarily reporting by creditor reportingfor the full historicalperiod, 1972-78, cov- countrieson their lendingand publicized Eurocurrency eredby the tables.Where individual reports are lacking credits.The notes on the debtof the Philippinesand for certainyears, estimates have been made by the Yugoslaviain Table2 applyto all Tables2 through7. WorldBank's staff in orderto presenta consistent The 94 countriesor other areasincluded in the seriesof data. tablesare those whose reporting on externalpublic Forthe purposeof thesetables, external public debt debt is sufficientfor a reliablepresentation of debt is definedas debt repayableto externalcreditors in outstandingand future service payments. The classi- foreigncurrency, goods, or services,with an original ficationby geographicalregion' is asfollows: or extendedmaturity of morethan one year, which is a directobligation of, or hasrepayment guaranteed by, AfricaSouth of the Sahara-Benin, Botswana,Bu- a publicbody in the borrowingcountry. Most military rundi,Cameroon, Central African Republic, Chad, debtsare not reported,although a fewcountries have Comoros,Congo (People's Republic of the),Ethi- includedsuch obligations in theirdata. opia,Gabon, Gambia (The), Ghana, Guinea, Ivory TheWorld Bank continues to work in cooperation Coast,Kenya, Lesotho, Liberia, Madagascar, Ma- with its membercountries toward the improvementof lawi, Mali,Mauritania, Mauritius, Niger, Nigeria, debtstatistics. This effort resultsin manycases in a Rwanda,Senegal, Sierra Leone, Somalia, Sudan, broadeningofthe coverageof thedata for bothcurrent Swaziland,Tanzania, Togo, Uganda, Upper Volta, andpast periods.Therefore, a comparisonwith debt Zaire,Zambia (and the EastAfrican Community). tablesin the 1979Annual Report will showchanges in data givenfor pastyears. The currentAnnual Report EastAsia and Pacific-Fiji, HongKong, 2 Indonesia, shouldbe regarded as the morereliable. Users of the Korea(Republic of), Malaysia,Papua New Guinea, tableson externalpublic debt should be particularly Philippines,Singapore, Thailand, Taiwan. carefulin makingcomparisons with pastAnnual Re- ports,as the coveragehas changed over the years. LatinAmerica and the Caribbean-Argentina,Barba- In Table4, debtservice ratios representservice pay- dos,Bolivia, Brazil, Chile, Colombia, Costa Rica, ments(amortization plus interest)on external public DominicanRepublic, Ecuador, El Salvador, Guate- debtas a percentageof the exportsof goodsand all mala,Guyana, Haiti, Honduras, Jamaica, Mexico, services.The debt service figures used in the present 'Notethat inthese tables Afghanistan is classified under South Asia, whilein the discussion ofthe year's activities by region, it is classified underEurope, Middle East, and North Africa. 2Hong Kongisa nonmetropolitanterritory in respectofwhich the United Kingdomhas accepted the Bank's Articles of Agreement. Statistical Annex 129

tableare those for actualdebt service paid during the mentsby IDBon loansrepayable in localcurrencies. year.If the entireamount of contractualdebt service Grantsfor technicalassistance have been excluded. wasnot paid during a year,this is reflectedin a lower Datafor grantsdo not includegrants from bilateral debtservice ratio than would have been the casehad donorsother than DAC countries, although grants from contractualdebt service instead of actualservice been other sourcesmay havebeen large in somecases. usedin computingthe ratio.Likewise, the prepayment However,debt data include obligations to creditorsof of debt servicemay resultin a higherdebt service all nationalities. ratio. Table8 dealswith foreignand internationalbond Thedebt service ratio is, by itself, an inadequate issues."Foreign bonds" are thoseissued in a single and incompleteindicator of the debtsituation, and nationalmarket. "International bonds" arethose which internationalcomparisons of theseratios have only aresold in twoor moremarkets simultaneously. During limited meaning.Many other factorsmust also be the periodunder review foreign bonds have been issued considered,such as the stabilityand diversification of in the followingnational markets: Austria, Belgium, the exportstructure, the extentto whichimports can Finland,France, Germany (Federal Republic of), Italy, be reducedwithout adversely affecting the prospects Japan,Libya, Luxembourg, Netherlands, Saudi Arabia, forfuturegrowth,thesize of foreign exchange reserves Sweden,Switzerland, Trinidad and Tobago,United and availablecompensatory financing facilities, and Kingdom,and United States. the debtservice record. Further, external public debt In Tables9 and 10, "Eurocurrencycredits" are constitutesonly a partof the total indebtednessand, creditsgranted by privatebanks out of fundson deposit thus,considerably understates the burdenof indebt- with themor borrowedby themin the Eurocurrency ednessin somecases. Therefore, the debtservice ratio market.The term "Euro" is usedto referto "offshore" is onlyan indication of the importanceof debtand debt marketsoutside, as well as inside,Europe. The term servicein the totalforeign exchange situation. "credit" is usedto referto loans,lines of credit,and In Table6, net flow is definedas disbursementson otherforms of medium-termand long-term credit. loans,grants, and grantlike loans minus amortization Dataon externalpublic debt are convertedto US on loans.Net transferis net flow minusinterest on dollarsat current market rates. Capital flows and serv- loans.In Table7, grant element is definedas the face icepayments are converted to USdollars at anaverage valueof loancommitments less the discountedpresent ratefor the year.Debt outstanding is convertedat the valueof thefuture flow of repaymentsofprincipal and ratein effectas of the dateof the outstanding.Pro- interestexpressed as a percentageof facevalue. The jecteddebt service is convertedto USdollars at end- discountrate used is 10%,the conventionalrate used 1978rates. However, debts repayable in multiplecur- by the Organisationfor EconomicCo-operation and rencies,goods, or services,and debt which has a Development(OECD) in assessingterms. provisionfor maintenanceof valueof the currencyof In Tables6 and7, the sourceof datafor grantsis repayment,are shown at their bookvalues. OECD.For grantlike loans, the datasources are OECD Informationabout foreign and internationalbonds and the Inter-AmericanDevelopment Bank (IDB). and Eurocurrencycredits, denominated in national Grantsconsist of grantand grantlike (loans repayable currencies,is convertedto US dollarsusing monthly in local currency)contributions; they are on a dis- averagemarket exchange rates of currencyunits per bursementbasis in bothtables. The grants included in US dollar,series "af," from the IMF'sInternational thesetables comprise: (1) contributionsby countries FinancialStatistics (IFS) File. For loansdenominated which are membersof the DevelopmentAssistance in compositecurrencies (e.g., Europeanunit of ac- Committee(DAC) of the OECD;(2) grantsby multi- count),the conversionis madeusing ratesderived lateralagencies as compiledby OECD;(3) disburse- bythe WorldBank. 130 Statistical Annex Selected Economic Indicators, Regional Summary Averageannual real growthand sharesin GrossNational Product (GNP), 1961-65,1966-75, 1976, 1977, 1978, and 1979 (Percentages)

Region Indicator 1961-65 1966-75 1976 1977 1978 1979(P)

All developing regions Real rate of growth Total GNP...... 5.6 6.0 6.2 5.9 5.8 4.6 Agriculturalproduction ...... 2.8 3.1 1.8 3.4 4.1 0.2 Manufacturingproduction ...... 8.6 8.5 8.0 7.1 6.8 Population...... 2.4 2.4 2.3 2.3 2.4 2.5 GNPper capita...... 3.1 3.5 3.7 3.5 3.4 2.1 Grossinvestment ...... 8.2 8.7 6.3 9.3 5.8 Share in GNP Grossinvestment ...... ,. 20.2 21.9 25.0 25.5 25.5 Grossnational saving ...... 18.2 20.7 23.3 24.0 24.1

Africa South of the Sahara Real rate of growth Total GNP...... 3.9 4.5 6.7 3.3 2.9 3.3 Agriculturalproduction ...... 2.7 1.9 0.1 1.6 2.9 2.1 Manufacturingproduction ...... 9.4 6.5 7.8 3.3 4.5 Population...... ,.,,,,... 2.5 2.6 2.7 2.7 2.8 2.8 GNPper capita...... 1.4 1.8 3.9 0.6 0.1 0.5 Grossinvestment ...... 7.3 8.2 16.1 17.8 9.6 Sharein GNP Grossinvestment .16.4 18.5 23.0 23.7 24.7 Grossnational saving ...... 11.9 14.1 18.6 19.0 19.9

East Asia and Pacific Real rate of growth Total GNP...... 5.7 7.7 10.6 8.6 9.4 6.7 Agriculturalproduction ...... 5.3 3.6 3.9 4.1 6.5 1.7 Manufacturingproduction ...... 9.3 15.0 20.3 12.5 17.6 7.2 Population...... 2.6 2.3 2.1 2.3 2.0 2.2 GNPper capita...... 3.1 5.3 8.3 6.2 7.3 4.5 Grossinvestment...... 12.5 12.7 7.1 13.4 17.1 29.9 Sharein GNP Grossinvestment ...... 15.9 22.2 25.4 25.2 26.8 29.5 Grossnational saving ...... 12.1 17.9 24.1 24.6 24.3 26.7

Latin America and the Caribbean Real rate of growth Total GNP...... 5.2 6.4 4.5 4.7 3.9 5.6 Agriculturalproduction ...... 3.7 2.9 2.6 5.6 3.5 2.0 Manufacturingproduction ...... 5.8 7.8 5.6 3.7 3.7 Population...... 2.8 2.7 2.8 2.7 2.7 2.8 GNPper capita...... ,.. 2.3 3.6 1.7 1.8 1.1 2.7 Grossinvestment ...... ,. 4.6 8.8 4.7 6.2 6.2 Share in GNP Grossinvestment ...... ,.. 20.4 22.0 24.4 24.8 25.3 Grossnational saving ...... 19.8 20.2 21.7 22.8 21.8

North Africa and Middle East Real rate of growth Total GNP.... , 8.0 6.1 14.8 12.1 13.0 7.9 Agriculturalproduction...... 2.4 2.2 8.6 -8.4 8.5 2.0 Manufacturingproduction ...... 8.7 7.6 10.5 12.3 7.2 Population...... 2.5 2.9 3.1 3.2 3.3 3.0 GNPper capita...... ,.. 5.4 3.1 11.3 8.6 9.4 4.7 Grossinvestment ...... 3.5 15.5 13.0 20.7 6.9 Share in GNP Grossinvestment ...... 21.4 22.4 30.9 33.2 31.7 Grossnational saving ...... 23.7 35.4 41.6 40.8 40.2 Statistical Annex 131 Table 1

Region Indicator 1961-65 1966-75 1976 1977 1978 1979(P)

South Asia Real rate of growth Total GNP...... 3.7 3.8 3.0 6.7 5.6 0.1 Agriculturalproduction ...... 0.7 3.2 -2.0 8.4 3.1 -3.7 Manufacturingproduction ...... 9.1 3.5 8.0 4.9 7.9 0.4 Population...... 2.4 2.3 2.2 2.0 2.1 2.4 GNPper capita...... 1.4 1.4 0.8 4.6 3.4 -2.2 Grossinvestment ...... 8.1 3.5 12.3 1.4 7.4 3.5 Sharein GNP Grossinvestment ...... 17.3 17.2 20.7 20.2 21.4 22.5 Grossnational saving ...... 14.1 14.7 18.5 19.0 20.1 17.6

More advanced Mediterranean countries Real rate of growth Total GNP ...... 7.5 6.3 3.7 3.9 3.9 2.8 Agriculturalproduction ...... 3.0 3.9 3.8 -1.1 3.8 -0.6 Manufacturingproduction 11.7 8.6 6.2 10.1 6.0 3.8 Population...... 1.5 1.5 1.6 1.6 1.9 1.4 GNPper capita...... 6.0 4.7 2.0 2.3 1.9 1.4 Grossinvestment ...... 12.7 6.3 0.3 6.1 -3.3 Sharein GNP Grossinvestment ...... 25.3 25.0 25.2 25.7 23.9 Grossnational saving ...... 22.1 21.9 20.1 20.9 20.9

Industrialized countries Real rate of growth TotalGNP ...... 5.3 4.2 5.2 3.7 3.9 3.3 Agriculturalproduction ...... 1.8 2.8 2.6 2.5 4.1 0.1 Manufacturingproduction ...... 6.2 3.9 9.0 3.7 4.4 - Population...... 1.2 0.9 0.5 0.6 0.6 0.5 GNPper capita...... 4.1 3.3 4.7 3.1 3.3 2.8 Grossinvestment ...... 7.2 4.5 -2.7 3.9 4.1 Sharein GNP Grossinvestment ...... 20.5 21.2 21.8 22.0 22.4 Grossnational saving ...... 26.6 29.3 21.6 21.8 22.3

NOTE:All the countrieslisted below have been included for the estimatesof the real ratesof growthof GNPand population. For other indicators, some countriesor otherareas have been omitted due to lack of data. Industralizedcountries-Australia, Austria, Belgium,Canada Denmark, Finland, France, Germany (Federal Republic of). Iceland,Ireland, Italy, Japan, Luxembourg,Netherlands, New Zealand, Norway, South Africa, Sweden,Switzerland, United ingdom,United States. Developingcountries or other areas-Thoselisted in the "GeneralNotes to AnnexTables" and those below: Africa Southof the Sahara-Zimbabwe. EastAsia and Pacific-DemocraticKampuchea, Lao People'sDemocratic Republic, Western Samoa, Solomon Islands, Viet Nam. LatinAmerica and the Caribbean-Bahamas,Grenada. NorthAfrica and MiddleEast-Kuwait, Libya,Qatar, Saudi Arabia, United Arab Emirates. (P) Preliminary. Source:World Bank. 132 Statistical Annex

External Public Debt Outstanding (Including Undisbursed),by Region, 1972-78 (USS millions)

Africa Latin More South EastAsia America North Africa advanced Year of the and andthe and Mediterranean Typeof creditor Sahara PacificI Caribbean MiddleEast SouthAsia countries2 Total

Total debt outstanding end of year 1972...... 10,504.7 14,490.0 29,253.8 8,923.5 19,040.9 14,600.0 96,812.9 1973...... 14,579.6 17,606.9 36,423.4 12,030.7 21,416.0 16,601.3 118,657.8 1974...... 18,578.8 24,420.2 47,196.9 16,264.4 26,290.7 20,597.1 153,348.1 1975...... 21,617.3 30,525.8 56,053.4 24,347.9 28,509.2 23,316.8 184,370.3 1976...... 25,531.9 39,415.8 72,754.3 31,207.0 31,137.6 28,822.2 228,868.7 1977...... 31,072.3 47,287.9 91,237.0 42,441.3 35,636.4 34,237.2 281,912.0 1978...... 37,633.2 59,972.8 115,847.9 53,538.4 40,115.2 41,377.8 348,485.3 Debt outstanding by type of creditor December 31, 1972 Bilateral official...... 5,356.4 7,565.8 8,167.7 5,425.2 13,848.2 6,923.5 47,286.8 Multilateral...... 2,483.5 2,814.6 7,249.0 633.2 4,045.5 2,143.2 19,369.0 Private Suppliers...... 1,263.8 2,384.8 4,878.0 1,970.1 999.2 1,180.1 12,675.9 Financialinstitutions ... 873.0 1,314.6 6,786.3 798.0 133.9 2,497.2 12,403.0 Other...... 528.1 410.2 2,172.7 96.9 14.1 1,856.0 5,078.1 Total...... 10,504.7 14,490.0 29,253.8 8,923.5 19,040.9 14,600.0 96,812.9 December 31, 1973 Bilateral official...... 6,821.8 8,919.9 9,643.4 6,591.6 15,321.7 7,598.5 54,896.8 Multilateral...... 3,372.4 3,547.7 8,433.5 900.3 4,890.0 2,556.2 23,700.2 Private Suppliers...... 1,795.7 2,733.0 5,261.7 2,119.8 1,054.8 1,245.6 14,210.6 Financial institutions ... 1,882.8 1,937.0 10,843.6 2,253.2 135.6 2,890.2 19,942.4 Other...... 706.9 469.3 2,241.1 165.8 13.9 2,310.8 5,907.9 Totai...... 14,579.6 17,606.9 36,423.4 12,030.7 21,416.0 16,601.3 118,657.8 December 31, 1974 Bilateralofficial ...... 8,757.6 10,616.8 11,835.2 8,613.2 18,659.3 8,818.0 67,300.1 Multilateral...... 4,201.2 4,738.5 9,795.8 1,627.8 6,320.1 3,252.3 29,935.8 Private Suppliers...... 2,065.5 4,253.5 6,173.9 2,930.5 1,076.5 1,239.7 17,739.6 Financial institutions .. 2,863.6 4,253.7 16,405.7 2,866.8 220.8 4,786.9 31,397.3 Other...... 691.0 557.7 2,986.3 226.0 14.0 2,500.2 6,975.2 Total...... 18,578.8 24,420.2 47,196.9 16,264.4 26,290.7 20,597.1 153,348.1 Statistical Annex 133

Table 2

Africa Latin More South East Asia America North Africa advanced Year of the and and the and Meditcrranean Type of creditor Sahara Pacific Caribbean Middle East South Asia countriesz Total

December31, 1975 Bilateral official...... 9,572.6 11,662.1 12,506.6 12,150.4 19,612.4 9,719.8 75,223.9 Multilateral...... 5,564.8 6,044.6 11,853.7 2,172.3 7,714.8 3,744.1 37,094.2 Private Suppliers...... 2,573.2 4,349.4 5,992.7 4,949.3 894.9 1,157.0 19,916.5 Financialinstitutions ... 3,417.5 7,946.3 22,628.0 4,834.3 285.1 5,985.0 45,096.2 Other...... 489.2 523.4 3,072.5 241.7 2.0 2,710.8 7,039.6 Total...... 21,617.3 30,525.8 56,053.4 24,347.9 28,509.2 23,316.8 184,370.3 December31, 1976 Bilateral official...... 10,919.9 14,063.6 15,332.4 15,177.9 21,267.4 12,000.2 88,761.5 Multilateral...... 6,763.1 7,789.0 14,379.0 3,133.4 8,662.4 4,297.0 45,023.9 Private Suppliers...... 2,954.2 5,448.4 6,429.1 5,421.6 846.6 1,400.1 22,500.0 Financialinstitutions . 4,687.5 11,079.3 32,111.6 7,175.1 359.2 8,225.0 63,637.6 Other...... 207.2 1,035.4 4,502.2 299.0 2.1 2,899.8 8,945.7 Total...... 25,531.9 39,415.8 72,754.3 31,207.0 31,137.6 28,822.2 228,868.7 December31, 1977 Bilateral official...... 12,918.7 16,438.8 16,426.6 19,106.4 23,832.7 13,919.8 102,643.0 Multilateral...... 8,264.0 9,643.3 16,636.1 6,147.9 10,484.2 5,106.0 56,281.4 Private Suppliers...... - 3,522.6 6,698.7 7,898.2 6,479.9 862.6 1,586.2 27,048.1 Financialinstitutions- 6,176.4 13,049.1 43,385.7 10,271.0 454.8 10,151.1 83,488.1 Other...... 190.6 1,458,1 6,890.3 436.1 2.1 3,474.1 12,451.4 Total...... 31,072.3 47,287.9 91,237.0 42,441.3 35,636.4 34,237.2 281,912.0 December31, 1978 Bilateral official...... 14,663.9 20,457.3 18,253.9 23,033.8 25,525.5 17,484.3 119,418.8 Multilateral...... 9,988.0 12,608.4 19,981.0 7,139.7 13,282.7 6,501.9 69,501.7 Private Suppliers...... 3,672.2 7,757.7 9,652.2 7,140.0 825.3 1,657.0 30,704.4 Financialinstitutions ... 9,152.2 17,051.0 58,664.9 15,634.1 479.4 11,814.8 112,796.4 Other...... 156.8 2,098.3 9,296.0 590.8 2.2 3,919.8 16,064.0 Total...... 37,633.2 59,972.8 115,847.9 53,538.4 40,115.2 41,377.8 348,485.3

NOTE:Information on the sources, definitions, coverage, and interpretation of the data is given in the "General Notes to Annex Tables." Items may notadd to totals due to rounding. Doesnot include publicly guaranteed private debt of the Philippines estimated at $444.8million as of the end of 1978. Doesnot includenonpublicly guaranteed debt of the 'social sector" of Yugoslavia contracted after March 31, 1966. Source: World Bank. 134 Statistical Annex External Public Debt Outstanding, by Country and Type of Creditor, December 31, 1978 (US$ millions) Externalpublic debt outstanding Includingundisbursed Region Disbursed Bilateral Multi- Financial Countryor otherarea only Total official lateral Suppliers institutions Other Africa South of the Sahara Benin...... 145.5 259.6 97.2 143.9 9.7 8.7 - Botswana...... 120.7 234.4 58.8 126.0 2.4 45.0 2.2 Burundi...... 63.6 136.5 44.1 81.3 3.9 7.2 - Cameroon...... 1,167.4 1,978.4 779.3 510.7 140.0 548.4 - CentralAfrican Republic ...... 137.8 195.7 51.9 76.6 64.6 2.6 - Chad...... 156.5 282.7 104.9 142.3 26.6 8.9 - Comoros...... 45.3 61.6 23.1 38.5 - - - Congo,People's Republic of the ...... 726.3 914.1 510.3 136.1 174.2 93.5 - EastAfrican Community ...... 296.0 316.6 81.0 197.5 7.5 - 30.5 Ethiopia...... 550.9 809.8 313.1 481.6 - 14.9 - Gabon...... 1,167.9 1,261.0 243.6 59.5 195.1 753.9 8.8 Gambia,The ...... 42.6 109.4 67.8 41.6 - - - Ghana...... 842.7 1,075.2 531.8 315.9 206.0 21.5 Guinea...... 915.6 1,215.5 798.2 165.5 233.2 18.5 - Ivory Coast...... 2,818.1 4,230.1 627.8 671.3 712.5 2,198.6 19.9 Kenya...... 952.7 1,911.4 604.2 944.8 69.8 283.7 9.0 Lesotho...... 28.0 79.4 10.6 68.2 - 0.6 - Liberia...... 334.4 638.5 256.4 212.5 20.1 149.5 - Madagascar...... 258.6 571.1 276.5 253.4 7.2 31.7 2.3 Malawi...... 390.0 577.8 251.0 251.6 6.8 64.4 4.1 Mali...... 539.5 785.1 517.3 245.7 9.3 12.9 - Mauritania...... 573.5 805.2 480.5 132.6 83.2 78.8 30.0 Mauritius ...... 150.5 270.3 101.2 127.1 5.0 37.0 - Niger...... 194.3 394.3 212.9 136.8 10.1 34.5 Nigeria...... 2,180.5 3,328.2 636.1 875.0 36.9 1,780.2 Rwanda...... 95.4 197.6 71.3 125.0 1.2 - - Senegal...... 587.1 1,119.2 376.4 284.5 65.3 389.4 3.5 Sierra Leone...... 275.3 330.3 97.7 91.1 113.2 28.4 - Somalia...... 495.7 1,003.6 795.8 204.9 - - 2.9 Sudan...... 2,075.5 3,436.5 1,640.7 700.3 454.6 640.9 - Swaziland...... 103.8 202.3 81.9 91.8 0.5 28.1 - Tanzania...... 1,094.7 1,679.7 921.3 706.4 19.4 21.3 11.2 Togo...... 494.0 749.2 209.0 148.9 153.6 237.6 - Uganda...... 252.2 362.3 265.8 89.8 - 4.0 2.7 UpperVolta ...... 190.7 337.3 165.8 168.9 0.2 2.3 - Zaire...... 2,565.8 3,649.8 1,436.1 458.0 582.2 1,166.6 7.0 Zambia ...... 1,396.3 2,123.6 922.7 482.0 257.6 438.7 22.7 Total.24,425.2 37,633.2 14,663.9 9,988.0 3,672.2 9,152.2 156.8 East Asia and Pacific Fiji...... 80.3 155.4 52.9 87.6 5.8 5.0 4.1 HongKong ...... 223.5 919.0 - 69.5 216.7 632.8 - Indonesia...... 13,089.0 18,886.9 9,538.0 3,222.1 1,608.8 4,182.8 335.2 Korea,Republic of ...... 11,991.6 18,246.3 5,117.8 3,037.3 4,634.8 5,153.9 302.4 Malaysia...... 2,671.4 4,360.0 834.1 1,301.0 34.6 1,980.6 209.7 PapuaNew Guinea ...... 369.9 463.1 20.8 210.9 3.6 123.6 104.1 Philippines...... 4,188.2 7,563.3 1,667.0 2,506.8 553.1 2,065.3 771.0 Singapore...... 1,133.5 1,350.3 320.3 237.1 254.4 166.9 371.7 Thailand...... 1,777.1 3,680.3 1,165.1 1,656.9 9.0 849.4 - Taiwanl...... 2,903.2 4,348.1 1,741.5 279.2 436.9 1,890.5 - Total...... 38,427.7 59,972.8 20,457.3 12,608.4 7,757.7 17,051.0 2,098.3 Latin America and the Caribbean Argentina...... 6,801.1 8,893.4 1,000.3 1,883.0 1,978.4 3,026.8 1,004.9 Barbados...... 60.4 102.6 27.7 49.3 0.6 25.0 - Bolivia...... 1,665.5 2,377.3 793.1 621.2 162.7 726.2 74.2 Brazil...... 28,820.8 33,350.0 4,668.7 5,058.5 4,130.2 16,917.1 2,575.6 Chile...... 4,359.0 5,615.1 1,835.1 496.9 665.7 2,384.5 232.9 Colombia...... 2,832.6 4,332.8 1,257.2 2,054.0 275.7 690.8 55.1 Statistical Annex 135 Table 3

Externalpublic debt outstarlding Includingundisbursed Region Disbursed Bilateral Multi- Financial Countryor otherarea only Total official lateral Suppliersinstitutions Other CostaRica ...... 963.0 1,616.3 300.9 676.5 58.6 554.9 25.5 DominicanRepublic ...... 724.4 994.3 466.9 203.9 4.2 319.2 - Ecuador...... 1,563.5 2,250.6 337.1 554.0 140.3 1,152.9 66.3 El Salvador...... 333.1 650.9 221.0 400.5 - 29.4 - Guatemala...... _ 373.6 789.5 236.0 545.5 2.5 5.6 - Guyana...... 421.9 633.1 271.2 165.6 25.2 83.7 87.5 Haiti...... 163.1 263.0 80.2 179.1 0.5 3.1 - Honduras...... 591.1 917.9 238.4 564.5 18.7 96.Z - Jamaica ...... 1,036.3 1,398.2 537.4 325.9 23.0 394.6 117.2 Mexico ...... 25,775.3 31,183.8 1,906.1 3,769.0 533.4 22,364.7 2,610.5 Nicaragua...... 963.8 1,212.7 394.3 390.9 26.3 392.9 8.3 Panama...... 1,909.8 2,423.6 349.6 469.6 47.6 1,177.9 378.9 Paraguay...... 446.7 708.7 194.6 275.9 61.1 177.1 - Peru...... 5,367.4 7,162.4 2,681.1 647.9 1,053.1 2,777.8 2.5 Trinidad andTobago ...... 417.5 453.2 36.8 83.1 - 282.1 51.3 Uruguay...... 765.8 1,168.0 165.4 270.7 33.8 419.0 279.0 Venezuela ...... 6,921.2 7,350.8 254.8 295.7 410.6 4,663.5 1,726.2 Total...... 93,276.9 115,847.9 18,253.9 19,981.0 9,652.2 58,664.9 9,296.0

North Africa and Middle East Algeria ...... 13,167.6 20,093.2 2,935.8 720.0 5,655.0 10,579.5 202.9 Bahrain...... 76.1 176.6 158.2 18.4 - - - Egypt, Arab Republicof ...... 9,879.3 14,126.8 9,057.0 3,305.5 789.9 833.6 140.7 Jordan...... 840.4 1,667.2 1,046.8 211.5 61.3 347.6 - Lebanon...... 125.0 324.4 35.1 138.4 - 150.9 - Morocco...... 5,139.2 7,422.0 3,066.3 1,056.7 327.2 2,744.9 226.9 SyrianArab Republic...... 2,090.9 4,059.7 3,261.0 585.1 159.1 54.5 - Tunisia...... 2,359.1 4,068.0 2,282.3 696.6 145.6 923.2 20.4 YemenArab Republic...... 464.3 1,017.7 751.3 264.6 1.7 - - Yemen,People's Democratic Republicof ...... 348.5 582.7 439.9 142.9 - - - Total...... 34,490.63...... _ 53,538.4 23,033.8 7,139.7 7,140.0 15,634.1 590.8 South Asia Afghanistan...... 1,215.9 2,003.7 1,707.0 250.9 45.8 - - Bangladesh...... 2,797.7 4,278.8 2,546.1 1,522.0 157.9 52.8 Burma...... __ ...... 817.9 1.477.7 826.9 454.1 94.6 102.1 - India...... 15,326.2 20,562.1 12,154.1 8,089.7 227.1 88.9 2.2 Nepal ...... 87.7 381.6 43.8 337.0 0.7 - - Pakistan...... 7,568.3 9,868.3 7,144.9 2,264.7 223.7 235.0 Sri Lanka...... 1,013.1 1,543.0 1,102.8 364.2 75.5 0.6 - Total ...... 28826.8 40,115.2 25,525.5 13,282.7 825.3 479.4 2.2

More advanced Mediterranean countries Cyprus...... 226.4 316.3 39.1 145.4 7.7 124.1 - Greece..._...... 3,123.0 3,927.7 821.6 618.3 147.5 2,210.8 129.6 Israel...... 9,208.9 9,826.7 6,014.8 164.4 102.1 1,546.6 1,998.9 Malta ...... 63.1 97.1 94.3 1.3 - 1.4 - Portugal ...... 2.641.8 3,233.8 865.7 679.7 421.8 1,181.7 84.9 Spain._ ...... 7,631.3 9,697.9 2,222.9 577.6 125.9 5,140.2 1,631.4 Turkey...... 6,188.4 9,680.2 5,205.6 2,352.6 819.9 1,241.1 60.9 Yugoslavia...... 3,454.4 4,598.1 2,220.4 1,962.6 32.0 368.9 14.2 Total...... 32,537.4 41,377.8 17,484.3 6,501.9 1,657.0 11,814.8 3,919.8 GRANDTOTAL ...... 251,984.6 348,485.3 119,418.8 69,501.7 30,704.4 112,796.4 16,064.0

Service Payments on External Public Debt as Percentage of Exports of Goods and Services, 1972-78

Servicepayments as percentageof exportsof goodsand services Region Countryor otherarea 1972 1973 1974 1975 1976 1977 1978

Africa South of the Sahara Benin...... 3.3 1.9 4.8 3.6 2.7 2.4 6.4 Botswana' ...... 2.8 2.6 2.7 3.1 1.5 1.9 2.5 Burundi...... 6.6 2.7 2.7 5.8 4.6 2.8 3.2 Cameroon...... 4.8 4.7 4.3 5.3 5.5 5.1 7.7 CentralAfrican Republic...... 1.4 4.4 4.8 7.4 2.0 4.5 2.5 Chad...... 5.0 3.3 3.1 5.5 3.9 9.4 13.0 Comoros...... 0.0 2.1 1.1 4.6 5.7 7.0 10.8 Congo,People's Republic of the...... 8.7 8.1 6.5 12.1 8.3 10.4 7.2 Ethiopia ...... 8.7 6.4 5.4 7.4 6.7 6.5 7.5 Gabon ...... 7.1 14.1 4.1 5.5 6.1 9.5 20.5 Gambia,The ...... 1.0 1.1 0.8 0.6 0.6 0.5 0.8 Ghana ...... 3.2 3.6 3.7 5.8 6.2 3.6 4.4 Guinea . .31.1 29.9 16.8 14.8 15.0 19.0 17.4 Ivory Coast...... 8.1 7.2 7.9 8.8 8.8 10.4 14.1 KenyaI ...... 6.0 5.5 4.6 4.3 5.7 4.6 8.3 LesothoI ...... 3.8 3.2 2.1 2.4 4.4 3.3 1.9 Liberia1I ...... 6.1 5.3 4.9 5.5 4.4 6.0 5.4 Madagascar ...... 3.5 5.3 3.6 3.4 3.9 3.2 3.2 Malawi ...... 7.4 7.4 7.6 7.7 7.3 5.2 8.7 Mali ...... 1.3 5.8 2.3 2.4 2.8 4.5 7.1 Mauritania...... 10.2 9.0 6.6 20.7 37.8 22.4 17.0 Mauritius ...... 1.6 1.3 0.8 1.6 1.0 1.6 2.4 Niger ...... 2.6 2.0 2.8 4.6 4.5 3.8 2.9 Nigeria ...... -- ...... 2.8 4.0 1.7 2.7 3.4 0.8 1.2 Rwanda ...... 2.1 0.2 0.8 0.7 0.8 0.9 1.4 Senegal ...... 3.9 8.0 5.5 5.5 5.7 8.3 14.9 SierraLeone ...... 8.0 8.6 8.4 10.2 15.3 9.8 16.0 Somalia ...... -- ..... 2.9 3.6 4.2 3.4 2.6 3.9 3.7 Sudan...... 13.8 11.9 14.2 21.7 14.1 7.6 9.4 SwazilandI . .10.1 9.5 2.3 1.6 0.8 0.9 1.6 Tanzania2. .... ,,,,...... 13.4 8.6 6.6 7.4 6.6 7.2 7.4 Togo ...... 6.4 6.7 3.4 9.7 6.3 11.1 15.2 Uganda2,, , _ , , ...... 4.0 8.3 4.5 3.7 2.9 3.0 2.2 UpperVolta ...... 2.9 3.3 2.9 3.6 2.9 3.4 3.8 Zaire ...... 8.0 8.2 11.1 15.0 10.8 9.1 31.3 Zambia ...... 12.9 30.23 7.1 10.1 10.1 18.6 20.8 East Asia and Pacific Fiji...... 0.8 0.8 1.6 1.5 2.2 2.3 4.4 HongKong ...... 0.0 0.0 0.0 0.0 0.0 0.1 0.13 Indonesia ...... 7.6 6.3 3.9 7.4 8.6 11.5 13.0 Korea,Republic of ...... -- ...... 18.2 15.1 10.1 11.3 9.3 9.0 10.5 Malaysia ...... 2.7 2.6 2.5 3.3 4.5 6.6 8.8 3 PapuaNew Guinea ...... 2.7 1.5 2.8 4.4 4.1 3.6 4.0 Philippines...... 10.0 8.7 5.2 7.1 7.1 7.5 13.4 Singapore...... 1.1 0.6 0.6 0.7 0.8 0.8 2.3 3 Thailand...... 2.7 2,6 1.9 2.4 2.4 2.8 3.7 Taiwaa...... 4.0 3.5 2.6 3,8 3.5 4.3 4.4 Latin America and the Caribbean Argentina...... 20.5 17.9 16.6 21.8 18.6 15.4 26.83 Barbados...... 5.5 2.3 1.9 1.8 1.7 3.3 2.2 Bolivia...... 17.8 15.2 11.0 14.4 15.9 21.2 48.73 Brazil ...... 15.8 12.1 11.4 15.7 17.4 19.6 28.4 Chile...... 9.9 10.9 11.5 28.6 32.0 33.6 38.23 Colombia...... 12.5 ...... 13.1 15.8 11.1 9.6 8.9 9.8 CostaRica ...... 9.6 10.0 9.3 10.4 9.2 8.9 23.03 DominicanRepublic ...... 4.1 5.6 4.9 5.0 6.1 6.3 9.4 Statistical Annex 137

Table 4

Servicepayments as percentageof exportsof goodsand services Fegion C:ountryor other area 1972 1973 1974 1975 1976 1977 1978

Ecuador...... 10.4 7.4 7.1 4.5 5.7 7.2 11.7 El Salvador...... 3.1 5.2 4.6 9.0 3 3.9 5.9a 2.6 Guatemala...... 10.3 3.5 3.7 1.7 1.3 1.2 1.7 Guyana...... 5.5 6.8 5.0 4.7 11.6 12.2 16.3 HaitiI. 6.1 7.4 6.6 7.2 7.2 7.1 5.8 Honduras...... 3.3 3.7 3.6 4.7 6.2 7.0 8.4 Jamaica...... 4.2 5.4 5.6 6.7 10.8 14.7 17.9 Mexico...... 22.3 22.7 18.9 25.3 31.3 46.4 59.63 Nicaragua...... 9.8 19.3 10.7 11.9 11.5 13.5 12.5 PanamaI ...... 10.4 14.43 12.83 5.9 8.5 12.2 39.2 3 Paraguay...... 12.8 10.0 7.5 9.7 7.5 6.3 7.3 Peru...... 15.6 29.1 3 23.03 25.3 25.9 30.3 31.1 Trinidadand Tobago...... 1.5 1.7 2.2 3 1.2 3 2.9 3 0.5 1.1 Uruguay...... 30.4 22.6 32.5 41.1 29.2 27.7 45.73 Venezuela...... 6.2 6.0 4.2 3 5.43 3.9 7.5 6.9 North Africa and Middle East Algeria...... 11.8 12.8 13.53 8.8 13.0 15.5 20.9 Bahrain...... 0.1 0.1 0.1 0.2 0.3 0.4 0.3 Egypt,Arab Republicof ...... 31.1 40.2 21.7 22.5 18.5 24.1 22.2 Jordan...... 6.6 4.9 4.0 3.6 2.7 3.2 4.0 Lebanon...... 1.0 1.1 0.9 0.9 1.0 0.8 0.8 Morocco...... 9.5 8.3 5.5 5.7 7.1 10.8 18.7 SyrianArab Republic...... 8.2 7.0 6.1 7.6 7.4 6.8 15.1 Tunisia ...... 15.2 10.6 6.5 6.7 7.1 9.3 12.3 YemenArab Republic4...... - - 4.7 1.2 0.5 0.3 1.1 Yemen,People's Democratic Republicof ...... 0.0 0.0 0.0 0.3 0.1 0.4 1.7 South Asia Afghanistan4 ...... 19.3 18.1 16.0 9.2 7.9 8.4 13.7 Bangladesh...... - 2.4 5.5 16.3 12.7 10.2 11.7 Burma4...... 17.7 26.4 12.8 17.5 16.1 13.1 18.0 India4 ...... 21.4 18.7 16.4 12.4 10.3 9.4 9.4 Nepal...... 1.4 1.7 2.3 4.0 1.0 1.4 1.4 Pakistan5 ...... 20.2 14.7 13.5 15.4 14.7 13.6 12.2 Sri Lanka...... 13.5 12.8 12.0 21.8 20.1 14,5 9.2 More advanced Mediterranean countries Cyprus...... 2.1 1.9 2.2 3.2 3.1 3.1 3.8 Greece...... 7.7 8.5 8.7 10.5 10.1 9.5 8.5 Israel...... 16.9 17.0 16.3 18.9 11.9 11.2 8.1 Malta...... 0.6 0.4 0.7 0.6 0.4 0.4 0.3 Portugal...... 3.4 2.5 2.0 2.9 2.9 3.3 3.7 Spain...... 3.2 3.3 2.4 2.6 3.4 4.6 11.0 3 Turkey...... 11.2 6.8 6.7 7.9 8.1 10.2 11.0 Yugoslavia...... 5.1 5.4 5.5 5.7 3.6 3.8 3.2

NOTE:Debt service ratios are based on debt serviceactually paid and noton contractual service due. Informationen the sources,definitions, coverage, andinterpretation of the datais givenin the "GeneralNotes to AnnexTables." B8ecause of specialmonetary arrangements peculiar to countriessuch as this, the debt serviceratio mustbe regardedwith morethan usualcaution in consideringthe country'sexternal financial situation. fIncludesa notionalshare of debtservice payments on loansto the EastAfrican Community: Kenya-50%, Tanzania-40VW, Uganda-10%. Servicepayments for theseyears reflect prepayments. 4 Dataare for fiscal years. I Includesfigures up to 1974relating to debt subsequentlytaken over by Bangladesh. Source:World Bank and IMF. Projected Debt Service on External Public Debt Outstanding, by Region and Type of Creditor, as of December 31, 1978 Table 5 > co (US$millions) Debtout- standing Including Projecteddebt service Region undisbursed) Typeof creditor December31, 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988

Africa South of the Sahara Bilateralofficial ...... 14,663.9 852.2 935.6 1,087.4 1,125.9 1,145.3 1,115.6 1,066.9 1,041.4 927.5 886.2 Multilateral...... 9,988.0 379.9 436.1 503.2 560.9 637.1 710.3 718.2 720.2 708.6 687.4 Private Suppliers...... 3,672.2 707.5 697.3 653.2 543.3 462.0 375.6 284.5 198.3 123.4 76.0 Financialinstitutions ...... 9,152.2 1,701.8 1,922.6 1,981.3 1,799.7 1,613.1 1,340.1 951.1 615.6 460.3 323.1 Other...... 156.8 33.8 33.3 20.9 26.3 30.8 11.3 3.4 2.6 2.6 3.8 Total...... 37,633.2 3,675.1 4,024.9 4,246.1 4,056.0 3,888.3 3,552.9 3,024.0 2,578.0 2,222.4 1,976.6

East Asia and Pacific Bilateralofficial ...... 20,457.3 1,243.5 1,369.5 1,479.6 1,572.4 1,633.5 1,643.4 1,702.0 1,637.1 1,526.7 1,421.0 Multilateral...... 12,608.4 654.9 808.2 978.3 1,152,8 1,287.0 1,377.4 1,366.6 1,340.0 1,302.1 1,249.2 Private Suppliers...... 7,757.7 1,435.0 1,532.1 1,381.3 1,285.0 1,180.9 1,016.5 857.5 589.6 449.3 362.2 Financialinstitutions...... 17,051.0 2,896.9 3,217.6 3,446A4 3,418.3 2,956.2 2,530.3 2,055.2 1,651.8 1,234.2 757.8 Other...... I...... 2,098.3 234.1 194.0 242.5 266.0 349.4 381.8 252.8 164.4 229.6 278.2 Total...... 59,972.8 6,464.3 7,121.3 7,528.1 7,694.5 7,406.9 6,949.5 6,234.1 5,382.9 4,741.8 4,068.3

Latin America and the Caribbean Bilateralofficial ...... 18,253.9 2,134.3 2,077.2 2,118.9 2,031.8 1,899.2 1,928.2 1,631.3 1,458.8 1,315.7 1,069.5 Multilateral...... 180 1,323.1 1,536.9 1,824.6 2,037.7 2,150.3 2,149.5 2,110.6 2,040.4 1,939.9 1,843.6 Private Suppliers...... 9,652.2 2,456.3 2,176.3 1,916.9 1,571.1 1,192.8 911.7 675.0 461.0 345.5 195.3 Financialinstitutions I. I .I .- ...... 58,664.9 14,970.1 14,529.3 13,088.5 11,066.9 10,676.6 7,320.9 5,216.0 3,746.2 2,683.4 2,813.0 Other. ; \ 9,296.0 1,339.7 1,451.1 1,150.4 1,737.2 1,208.5 1,827.0 1,075.5 1,078.5 1,025.7 688.1 Total. - 115,847.9 22,223.5 21,770.8 20,099.3 18,444.7 17,127.5 14,137.4 10,708.4 8,784.8 7,310.2 6,609.4

North Africa and Middle East Bilateralofficial ...... I...... 23,033.8 2,551,2 1,400.6 1,901.9 1,798.5 1,938.5 1,976.2 1,828.0 1,622.8 1,569.7 1,421.2 Multilateral...... 7,139.7 304.3 393.3 468.6 785.3 822.3 830.2 826.9 802.7 773.8 468.1Z Private Suppliers...... 7,140.0 1,381.6 1,455.8 1,310.7 1,181.6 989.9 792.2 612.7 430.7 272.1 199.0o Financialinstitutions ...... 1...... 15,634.1 2,363.2 2,845.2 3,059.3 3,059.3 2,851.1 2,444.7 1,906.1 1,406.0 1,137.7 912.66 Other...... 590.8 79.9 84.3 102.4 145.0 138.1 91.4 64.5 39.2 27.8 17.5 , Total...... 53,538.4 6,680.2 6,179.1 6,842.9 6,969.7 6,740.0 6,134.6 5,238.2 4,301.4 3,781.0 3,018.5: SUUth- AS;a r Bilateralofficial 25,5255 1,3171 1,4197 1,4886 1,5661 1,5770 1,5246 1,5319 1,5233 1,4745 1399 0 Multilateral 13,2827 2845 3173 3233 3516 3888 4533 4735 4856 5041 5100 - Private 2 Suppliers 8253 1796 1550 1395 1232 1014 75.6 603 446 287 252 4. Financialinstitutions 4794 89 2 86 1 814 72 6 55 5 50 3 42 8 33 8 28 6 231 2 Other 22 01 01 01 01 12 11 00 00 00 00 Total 40,1152 1,8705 1,9782 2,0329 2,1137 2,1240 2,1049 2,1084 2,0874 2,0359 1,9574

More advanced Mediterranean countries Bilateralofficial 17,4843 2,1218 2,2220 2,1782 2,0298 1,9736 1,6671 1,5358 1,3181 1,0548 9502 Multilateral . 6,5019 4884 5513 6738 7857 8509 8188 7232 7006 6578 5999 Private Suppliers 1,6570 3145 2903 2829 2682 2019 1743 1522 1277 1055 92 5 Financialinstitutions 11,8148 2,4583 2,5526 2,4572 2,3082 2,0741 1,7840 1,1840 5291 4259 3203 Other 3,9198 4138 4324 4910 6895 4829 4429 2193 2695 2696 5017 Total 41,3778 5,7967 6,0487 6,0830 6,0813 5,5834 4,8871 3,8146 2,9451 2,5136 2,4646

Grand total Bilateralofficial 119,4188 10,2201 9,4245 10,2545 10,1245 10,1671 9,8551 9,2959 8,6014 7,8689 7,1471 Multilateral 69,5017 3,4350 4,0431 4,7718 5,6741 6,1364 6,3396 6,2191 6,0895 5,8863 5,3582 Private Suppliers 30,7044 6,4745 6,3068 5,6846 4,9724 4,1288 3,3459 2,6422 1,8521 1,3245 9503 Financialinstitutions 112,7964 24,4794 25,1535 24,1141 21,7250 20,2267 15,4703 11,3551 7,9826 5,9699 5,1499 Other 16,0640 2,1014 2,1952 2,0074 2,8640 2,2110 2,7555 1,6154 1,5542 1,5553 1,4892 Total 348,4853 46,7104 47,1231 46,8324 45,3599 42,8701 37,7664 31,1277 26,0797 22,6049 20,0947

NOTEInformation on the sources,defimtions, coverage, and interpretatmonof the data isgiven in the "GeneralNotes to AnnexTables " Itemsmay not addto totals dueto rounding Source WorldBank 140 Statistical Annex

External Resource Flows and Service Payments on Table 6 External Public Debt, by Region, 1972-78 (USSmillions) Disbursements Debt service Region Grantsand Amorti- Net Net Year Loans grantlike Total zation Interest Total flow transfer Africa South of the Sahara 1972...... 1,511.7 626.7 2,138.4 439.0 212.3 651.3 1,699.4 1,487.1 1973...... -...... 2,161.8 515.7 2,677.5 820.9 331.8 1,152.7 1,856.6 1,524.8 1974...... 2,635.4 814.6 3,450.0 686.2 358.4 1,044.6 2,763.8 2,405.4 1975 ...... 3,493.7 973.2 4,466.9 858.4 435.7 1,294.1 3,608.5 3,172.8 1976...... 3,814.1 866.8 4,680.9 1,048.6 471.9 1,520.5 3,632.3 3,160.4 1977...... 4,094.5 928.7 5,023.2 955.1 566.8 1,521.9 4,068.1 3,501.3 1978...... 5,700.4 1,710.9 7,411.3 1,553.4 925.7 2,479.1 5,857.9 4,932.2 East Asia and Pacific 1972...... 2,463.4 407.7 2,871.1 624.2 342.5 966.7 2,246.9 1,904.4 1973 ...... 2,985.4 334.1 3,319.5 954.2 453.9 1,408.1 2,365.3 1,911.4 1974...... 3,389.0 362.0 3,751.0 933.2 500.2 1,433.4 2,817.8 2,317.6 1975...... 5,805.2 431.4 6,236.6 1,169.8 779.9 1,949.7 5,066.8 4,286.9 1976...... --... 6,637.9 328.8 6,966.7 1,476.0 1,173.2 2,649.2 5,490.7 4,317.5 1977...... 6,927.6 409.6 7,337.2 2,426.5 1,480.8 3,907.3 4,910.7 3,429.9 1978...... 9,776.7 447.3 10,224.0 3,969.7 1,913.8 5,883.5 6,254.3 4,340.5 Latin America and the Caribbean 1972...... 5,383.5 263.6 5,647.1 2,163.1 977.0 3,140.1 3,484.0 2,507.0 1973...... 7,547.6 250.1 7,797.7 2,866.5 1,378.3 4,244.8 4,931.2 3,552.9 1974...... 10,564.6 250.7 10,815.3 3,379.2 2,014.7 5,393.8 7,436.1 5,421.4 1975...... 12,106.5 258.9 12,365.4 3,762.8 2,762.5 6,525.3 8,602.6 5,840.1 1976...... 17,089.7 256.0 17,345.7 4,718.6 3,291.8 8,010.3 12,627.1 9,335.3 1977...... 20,883.6 241.7 21,125.3 7,262.6 4,052.1 11,314.7 13,862.7 9,810.6 1978...... 31,365.8 283.8 31,649.6 12,026.4 5,943.9 17,970.3 19,623.2 13,679.3 North Africa and Middle East 1972...... 1,146.7 186.7 1,333.4 636.0 163.2 799.2 697.4 534.2 1973...... 2,715.5 186.4 2,901.9 955.9 209.2 1,165.1 1,946.0 1,736.8 1974...... 2,419.9 268.6 2,688.5 1,184.4 380.1 1,564.5 1,504.1 1,124.0 1975...... 5,341.7 232.0 5,573.7 1,003.5 436.7 1,440.2 4,570.2 4,133.5 1976...... 5,055.1 220.4 5,275.5 1,264.9 590.2 1,855.1 4,010.6 3,420.4 1977...... 9,180.3 250.1 9,430.4 1,716.7 976.4 2,693.1 7,713.7 6,737.3 1978...... 10,532.9 375.0 10,907.9 2,375.9 1,387.6 3,763.5 8,532.0 7,144.4 South Asia 1972...... 1,351.3 395.5 1,746.8 548.2 342.8 891.0 1,198.6 855.8 1973...... 1,817.1 460.8 2,277.9 605.4 373.7 979.1 1,672.5 1,298.8 1974...... 2,827.2 575.1 3,402.3 716.3 378.9 1,095.2 2,686.0 2,307.1 1975...... 3,665.9 1,029.3 4,695.2 866.6 404.0 1,270.6 3,828.6 3,424.6 1976...... 3,144.0 817.1 3,961.1 822.6 457.9 1,280.5 3,138.5 2,680.6 1977...... 2,786.6 976.1 3,762.7 894.1 497.8 1,391.9 2,868.6 2,370.8 1978...... 3,138.2 1,454.2 4,592.4 990.9 621.8 1,612.7 3,601.5 2,979.7 More advanced Mediterranean countries 1972...... 2,498.3 37.5 2,535.8 948.7 410.9 1,359.6 1,587.1 1,176.2 1973...... 2,918.3 123.3 3,041.6 1,161.6 571.7 1,733.3 1,880.0 1,308.3 1974...... 3,454.6 94.4 3,549.0 1,299.0 686.2 1,985.2 2,250.0 1,563.8 1975...... 4,404.0 440.4 4,844.4 1,510.5 870.0 2,380.5 3,333.9 2,463.9 1976...... 4,709.6 543.4 5,253.0 1,301.9 968.3 2,270.2 3,951.1 2,982.8 1977...... 5,900.5 644.1 6,544.6 1,727.1 1,185.0 2,912.1 4,817.5 3,632.5 1978...... 6,625.5 702.1 7,327.6 3,035.3 1,538.0 4,573.3 4,292.3 2,754.3 Grand total 1972...... 14,354.9 1,917.7 16,272.6 5,359.1 2,448.8 7,807.9 10,913.5 8,464.7 1973...... 20,145.7 1,870.4 22,016.1 7,364.5 3,318.7 10,683.2 14,651.6 11,332.9 1974 ...... 25,290.6 2,365.4 27,656.0 8,198.2 4,318.4 12,516.6 19,457.8 15,139.4 1975...... 34,817.1 3,365.2 38,182.3 9,171.6 5,688.9 14,860.5 29,010.7 23,321.8 1976 ...... 40,450.3 3,032.5 43,482.8 10,632.7 6,953.2 17,585.9 32,850.1 25,896.9 1977...... 49,773.0 3,450.3 53,223.3 14,982.1 8,758.8 23,740.9 38,241.2 29,482.4 1978...... 67,139.5 4,973.3 72,112.8 23,951.4 12,330.8 36,282.2 48,161.4 35,830.6 NOTE:Information on the sources,definitions, coverage, and interpretationof the data is given inthe "GeneralNotes to AnnexTables." Items may not add to totalsdue to roonding. Source:World Bank and OECD. Statistical Annex 141

Average Terms of Loan Commitments and Grant Element Table 7 of Loans and Grants, by Region, 1972-78 [Amountsin US$millions) Loancommitments Grant element Grant of loans Region Maturity Grace Interest element Grants andgrants Vear Amount (years) (years) (%) (%) (amount) (%) Africa South of the Sahara 1972...... 1,891.0 21.5 5.8 4.4 38 626.7 53 1973...... 4,014,9 20.3 5.7 5.5 32 515.7 40 1974...... 4,189.8 20.1 6.0 5.2 34 814.6 45 1975...... 4,687.3 20.3 5.2 5.7 30 973.2 42 1976...... 5,153.2 19.1 5.0 5.4 31 866.8 40 1977...... 5,758.9 18.9 4.7 5.5 30 928.7 40 1978...... 7,555.3 17.3 4.9 6.4 25 1,710.9 38 iEast Asia and Pacific 1972...... 3,398.7 19.7 5.5 5.8 29 407.7 36 1973...... 3,843.0 21.2 5.8 6.3 29 334.1 34 1974...... 7,452.7 16.8 5.0 7.7 16 362.0 20 1975...... 7,948.2 12.5 3.9 8.3 10 431.4 15 1976...... 10,400.5 14.0 4.5 7.8 12 328.8 15 1977...... 8,628.9 13.8 4.2 7.6 14 409.6 17 1978...... 13,907.0 15.3 4.5 8.0 13 447.3 16 Latin America and the Caribbean 1972...... 7,102.6 13.0 3.5 6.9 16 263.6 19 1973,...... ,,,,,,,,,, 9,621.0 13.5 4.2 8.2 10 250.1 12 1974. 12,887.6 12.3 3.7 9.2 5 250.7 7 1975. .,,,,,...... , 13,562.3 10.0 3.2 8.5 8 258.9 9 1976...... 20,646.6 9.9 3.1 7.5 11 256.0 12 1977...... 24,848.5 9.1 3.3 8.1 8 241.7 8 1978...... 33,811.6 10.1 4.0 9.5 3 283.8 4 North Africa and Middle East 1972 ...... 1,667.4 18.2 4.2 4.9 31 186.7 38 1973...... 3,772.5 17.0 5.6 7.1 18 186.4 22 1974...... 4,873.4 16.5 4.5 5.9 25 268.6 29 1975.. . ,,..,,,,, 9,621.3 15.0 4.6 6.0 24 232.0 26 1976...... 8,484.7 16.5 4.4 6.2 24 220.4 25 1977...... 11,726.9 15.1 4.8 6.2 23 250.1 24 1978...... 11,396.5 15.1 4.4 7.0 19 375.0 22 South Asia 1972...... 1,806.7 31.2 7.6 2.1 61 395.5 68 1973...... 2,744.9 31.6 7.3 2.5 58 460.8 64 1974 ...... 5,337.6 28.3 7.3 2.7 56 575.1 60 1975 ...... 4,360.0 32.2 8.1 2.5 60 1,029.3 67 1976...... 3,371.0 28.3 7.3 3.5 50 817.1 60 1977...... 4,208.8 34.4 8.3 2.6 60 976.1 68 1978...... 4,755.0 38.9 9.0 1.9 68 1,454.2 75

More advanced Mediterranean countries 1972 ...... 3,032.3 18.7 6.8 5.8 27 37.5 28 1973...... 2,837.0 19.0 8.2 6.4 26 123.3 29 1974...... 4,916.9 16.5 6.4 8.0 16 94.4 17 1975...... 4,805.1 16.0 6.2 7.7 15 440.4 22 1976...... 6,915.0 16.5 5.5 6.8 19 543.4 25 1977...... 6,218.1 15.2 5.6 7.1 17 644.1 25 1978 ...... 7,842.6 15.5 5.3 7.8 15 702.1 22 Grand total 1972. 18,898.7 18.2 5.1 5.6 28 1,917.7 34 1973...... 26,833.4 18.6 5.6 6.6 24 1,870.4 28 1974...... 39,657.9 17.2 5.1 7.1 21 2,365.4 25 1975...... 44,984.3 15.4 4.6 6.9 20 3,365.2 25 1976...... 54,971.0 14.5 4.3 6.8 18 3,032.5 22 1977 ...... 61,390.1 14.2 4.4 6.9 18 3,450.3 22 1978...... 79,268.0 14.7 4.7 7.9 14 4,973.3 19 NoTE:Information on the sources,definitions, coverage, and interpretationof the datais givenin the "GeneralNotes to AnnexTables." Source:World Bank and OECD. Foreign and InternationalBond Issues, by Borrower Entity, 1977-79 and First Half of 1980 Table 8 (US$millions) Foreignand international bond issues 1: yearsand typeof bonds 1977 1978 1979 Firsthalf 1980(P) Inter- Inter- Inter Inter- Foreign national Foreign national Foreign national Foreign national Categoryof borrowerentity bonds bonds Total bonds bonds Total bonds bonds Total bonds bonds Total Industrialized countries Australia...... 308.7 714.9 1,023.6 989.6 476.9 1,466.5 595.3 140.0 735.3 222.1 - 222.1 Austria...... 651.3 781.5 1,432.8 932.2 441.0 1,373.2 762.1 401.1 1,163.2 464.4 279.7 744.1 Belgium...... 205.4 33.9 239.3 38.4 - 38.4 - 303.3 303.3 8.7 - 8.7 Canada...... 3,428.5 1,945.3 5,373.8 3,929.5 828.4 4,757.9 2,717.7 1,404.9 4,122.6 1,025.6 934.2 1,959.8 Denmark...... 460.0 339.0 799.0 541.3 412.8 954.1 463.4 223.7 687.1 248.1 212.3 460.4 Finland...... 247.6 148.5 396.1 673.1 334.1 1,007.2 314.7 381.7 696.4 119.8 115.6 235.4 France...... 793.2 1,113.1 1,906.3 528.7 774.6 1,303.3 739.7 1,309.7 2,049.4 121.3 924.6 1,045.9 Germany,Federal Republic of ...... 49.7 240.4 290.1 20.8 323.7 344.5 127.5 351.9 479.4 - 55.8 55.8 Iceland...... 32.1 40.9 73.0 24.7 - 24.7 - 10.0 10.0 - - - Ireland...... 56.6 30.0 86.6 83.3 - 83.3 70.0 110.0 180.0 117.6 - 117.6 Italy...... 69.6 230.0 299.6 90.4 135.0 225.4 72.2 249.1 321.3 117.1 600.0 717.1 Japan...... 733.9 1,194.6 1,928.5 1,294.3 1,499.6 2,793.9 2,461.8 1,404.0 3,865.8 847.3 417.7 1,265.0 Liechtenstein...... - - - 13.1 - 13.1 21.5 - 21.5 - - - Luxembourg...... 126.1 455.2 581.3 180.3 265.2 445.5 36.8 67.8 104.6 - 27.9 27.9 Netherlands...... 102.9 409.6 512.5 7.6 228.3 235.9 388.9 474.8 863.7 165.9 581.0 746.9 NewZealand ...... 404.7 139.7 544.4 313.1 425.4 738.5 330.6 221.8 552.4 233.8 - 233.8 Norway...... 1,170.6 1,390.8 2,561.4 1,503.7 1,120.5 2,624.2 1,022.4 1,015.1 2,037.5 200.6 211.9 412.5 Sweden...... 698.1 865.1 1,563.2 499.6 241.9 741.5 957.1 614.4 1,571.5 891.7 312.5 1,204.2 Switzerland...... - 22.5 22.5 - 84.0 84.0 - 314.9 314.9 - 223.0 223.0 UnitedKingdom ...... 53.4 1,583.5 1,636.9 671.6 805.3 1,476.9 268.4 968.6 1,237.0 69.6 706.9 776.5 UnitedStates ...... 223.5 1,298.3 1,521.8 374.3 1,293.8 1,668.1 156.7 2,571.5 2,728.2 160.0 2,037.2 2,197.2 Total...... 9,815.9 12,976.8 22,792.7 12,709.6 9,690.5 22,400.1 11,506.8 12,538.3 24,045.1 5,013.6 7,640.3 12,653.9 Developing countries or other areas Algeria...... - 215.2 215.2 170.7 558.1 728.8 52.8 130.0 182.8 - Argentina...... - 43.0 43.0 67.7 198.7 266.4 154.2 262.4 416.6 Bolivia ...... - 15.0 15.0 ------Brazil...... 252.3 603.5 855.8 395.4 540.7 936.1 371.3 364.3 735.6 87.4 167.4 254.8 Chile...... - - - - 50.0 50.0 48.5 35.0 83.5 - - - Colombia...... ------55.0 55.0 Costa Rica...... - - - - 20.0 20.0 - - - - 50.0 50.0 Ecuador...... 7.9 - 7.9 - 62.0 62.0 ------Egypt,Arab Republic of ...... - - - - 25.0 25.0 - - - - 30.0 30.0 2 ElSalvador ...... - - - - 25.0 25.0 - - - -- Haiti...... ------8.0 8.0 - - HongKong ...... - 128.3 128.3 - - - - _ - _ _ _ India...... ------30.0 30.0v Indonesia...... - - - 50.0 54.2 104.2 37.3 25.4 62.7 - - - Iran ...... - 81.0 81.0 43.2 25.4 68.6 - - - Israel...... 280.0 60.0 340.0 306.0 120.0 426.0 237.4 200.0 437.4 - - - Korea,Republic of ...... - 71.5 71.5 56.0 - 56.0 - 43.6 43.6 Kuwait...... -...... - - - - 61.6 61.6 - - - Malaysia...... - 43.0 43,0 119.7 20.0 139.7 122.4 30.0 152.4 - - Mexico...... 591.1 756.7 1,347.8 341.6 345.9 687.5 138.0 225.0 363.0 58.2 200.9 259.1 Morocco...... - 28.3 28.3 - 91.5 91.5 - 21.8 21.8 23.2 - 23.2 Panama...... 2.0 25.0 27.0 43.2 171.9 215.1 60.7 50.0 110.7 - - PapuaNew Guinea...... - 25.0 25.0 ------Philippines...... 36.6 92.9 129.5 141.2 74.8 216.0 76.2 100.0 176.2 - - - Portugal...... - 50.0 50.0 ------30.0 30.0 SaudiArabia ...... - 9.9 9,9 - - 14.7 - 14.7 - - - Singapore...... 97.4 57.2 154.6 - 25.0 25.0 - 25.0 25.0 - - - SouthAfrica ...... - 33.2 33.2 338.0 143.9 481.9 232.6 11.0 243.6 118.7 67.0 185.7 Spain...... 340.9 189.9 530.8 181.8 141.9 323.7 356.8 124.1 480.9 216.2 50.0 266.2 Thailand...... - ...... - - 44.2 24.6 68.8 46.2 130.0 176.2 43.7 - 43.7 Trinidadand Tobago...... - - - 113.1 36.9 150.0 - - - - - Tunisia...... - 10.0 10.0 - 25.7 25.7 UnitedArab Emirates...... - 42.2 42.2 ------Venezuela...... 332.9 104.7 437.6 307.3 382.3 689.6 - 153.6 153.6 - 155.0 155.0 Yugoslavia...... 8.3 121.0 129.3 46.7 80.0 126.7 46.3 50.0 96.3 - 25.0 25.0 Taiwan...... - - - - 20.0 20.0 29.5 - 29.5 - - - Total...... 14 1...... ,994.9.4 2,806.5 4,755.9 2,765.8 3,325.1 6,090.9 2,024.9 1,989.2 4,014.1 547.4 860.3 1,407.7

Centrallyplanned countries Hungary...... - 174.6 174.6 ------50.0 50.0 Poland...... 6.3 74.6 80.9 - 30.0 30.0 18.1 30.0 48.1 - - - Total...... 6.3 249.2 255.5 - 30.0 30.0 18.1 30.0 48.1 - 50.0 50.0

Includes bothpublic offerings and private placements. (cOnfdnud) Foreign and InternationalBond Issues, by Borrower Entity, 1977-79 and First Half of 1980 /co#wed Table 8~ (US$millions) Forelgnand Internationalbond Issues': yearsand type of bonds 1977 1978 1979 Firsthalf 1980(P) Inter- Inter- Inter- Inter- Foreign national Foreign national Foreign national Foreign national Categoryof borrowerentity bonds bonds Total bonds bonds Total bonds bonds Total bonds bonds Total

International organizations African DevelopmentBank (AfDB) .. - 17.5 17.5 - 40.0 40.0 - 108.3 108.3 - Asian DevelopmentBank (AsDB) .... - 42.2 42.2 162.1 197.9 360.0 115.5 124.7 240.2 154.9 - 154.9 Central American Bank for Economic Integration (CABEI) ...... ------12.5 20.0 32.5 - - Council of Europe...... - 44.6 44.6 103.5 126.5 230.0 118.6 122.4 241.0 71.6 - 71.6 European Atomic Energy Community (EURATOM)...... - 105.8 105.8 44.4 - 44.4 84.7 81.4 166.1 - - European Coal and Steel Community(ECSC) ...... 255.3 400.2 655.5 363.0 492.2 855.2 243.8 425.9 669.7 57.0 174.8 231.8 European EconomicCommunity (EEC) 100.0 500.0 600,0 - - - 125.0 125.8 250.8 - 75.0 75.0 European Investment Bank (EIB).... 622.6 462.4 1,085.0 1,097.9 1,053.0 2,150.9 1,152.6 968.2 2,120.8 308.1 526.0 834.1 International Bank for Reconstruction and Development(IBRD) ...... 3,543.7 725.0 4,268.7 3,795.8 700.0 4,495.8 3,567.3 774.0 4,341.3 1,198.7 963.4 2,162.1 Inter-American Development Bank (IDB) ...... 226.8 73.9 300.7 139.3 74.0 213.3 370.9 - 370.9 164.1 - 164.1 Nordic Investment Bank (NIB) ...... - 40.0 40.0 - 35.0 35.0 30.3 75.2 105.5 - 4.0 4.0 Total ...... 4,748.4 2,411.6 7,160.0 5,706.0 2,718.6 8,424.6 5,821.2 2,825.9 8,647.1 1,954.4 1,743.2 3,697.6 Others Eurofima 29 ...... 0.2 70.0 160.2 141.3 151.6 292.9 117.2 218.2 335.4 11.6 28.7 40.3 Unallocated Borrowers 3 ...... - 970.0 970.0 53.9 24.0 77.9 16.3 125.6 141.9 - - - Total ...... 90.2 1,040.0 1,130.2 195.2 175.6 370.8 133.5 343.8 477.3 11.6 28.7 40.3 Recapitulation Industrialized countries...... 9,815.9 12,976.8 22,792.7 12,709.6 9,690.5 22,400.1 11,506.8 12,538.3 24,045.1 5,013.6 7,640.3 12,653.9 Developingcountries or other areas. . 1,949.4 2,806.5 4,755.9 2,765.8 3,325.1 6,090.9 2,024.9 1,989.2 4,014.1 547.4 860.3 1,407.7 Centrally planned countries ...... 6.3 249.2 255.5 - 30.0 30.0 18.1 30.0 48.1 - 50.0 50.0 International organizations...... 4,748.4 2,411.6 7,160.0 5,706.0 2,718.6 8,424.6 5,821.2 2,825.9 8,647.1 1,954.4 1,743.2 3,697.6 Others...... 90.2 1,040.0 1,130.2 195.2 175.6 370.8 133.5 343.8 477.3 11.6 28.7 40.3 GRANDTOTAL...... 16,610.2 19,484.1 36,094.3 21,376.6 15,939.8 37,316.4 19,504.5 17,727.2 37,231.7 7,527.0 10,322.5 17,849.5 ci Includesboth public offerings and private placements. SocieteEuropeenne pour le Financementde MaterielFerroviaire. 3Includesthefollowing corporations: Adela Investment Co., S.A.; BancoLatinoamericano de ExportacionesS.A.; IntershopOverseas Finance (Curagao) N.V.; MegalFinance Co., Ltd.; PrivateInvestment Co., for Asia, S.A.; Scandinavian 2 AirlinesSystem (SAS); Shell International Finance N.V.; Trans-AustriaGasline Finance Co., Ltd. (P)Preliminary. Source:World Bank, Statistical Annex 145 Publicized Eurocurrency Credits, by Borrower Entity, Table 9 1977-79 and First Half 1980 (US$ millions) PublicizedEurocurrency credits: years First Half Categoryof borrowerentity 1977 1978 1979 1980(P)

Industrialized countries Australia...... 49.0 799.2 461.0 305.0 Austria...... 154.4 150.0 - - Belgium...... - 40.0 1,000.0 1,200.0 Canada...... 512.0 9,580.6 946.0 1,730.0 Denmark...... 873.2 2,334.6 1,210.7 442.9 Finland...... 314.0 550.5 42.0 400.0 France...... 1,864.8 2,475.0 2,735.0 308.0 Germany,Federal Republic of ...... - - 149.0 - Iceland...... 71.0 70.0 154.8 - Ireland...... 508.5 676.2 687.5 52.0 Italy..... 778.6 2,808.4 3,414.6 2,588.0 Japan...... 67.5 86.2 - 30.0 Luxembourg...... - - 55.8 25.0 Netherlands...... - 1,090.0 230.8 30.0 NewZealand ...... 538.8 460.0 15.0 665.0 Norway...... 623.4 1,175.4 1,174.6 446.2 Sweden...... 1,375.7 1,861.0 1,318.6 232.9 UnitedKingdom ...... 2,476.2 4,7213 1,377.0 900.0 UnitedStates ...... 848.0 2,4643 3,834.8 1,021.0 Total...... 11,055.1 31,343.5 18,807.2 10,376.0

Developing countries or other areas Algeria...... 427.0 2,068.3 1,668.3 200.0 Antigua...... - 10.0 - - Argentina...... 828.1 1,273.0 2,122.8 1,040.0 Bahamas...... 10.0 - - - Bahrain...... 20.5 60.0 70.0 Barbados...... - 10.0 - Bolivia...... 100.0 227.0 47.0 Botswana...... - 45.0 - - Brazil...... 2,341.1 5,110.7 5,713.8 727.7 Burma...... 38.8 10.0 26.9 8.0 Cameroon...... 23.0 9.0 58.8 - Chile...... 226.5 1,145.0 685.0 185.5 Colombia...... 43.0 85.0 888.5 459.6 Congo,People's Republic of the...... 25.0 - - - CostaRica ...... 54.0 220.8 152.0 59.5 Cyprus...... 30.0 85.0 - - DominicanRepublic ...... - 60.0 195.0 90.0 Ecuador...... 428.0 252.1 935.5 130.0 Egypt,Arab Republicof ...... 250.0 63.5 6.5 12.5 Ethiopia.- - 14.0 - Fiji.10.0 - 36.0 - Gabon.56.0 86.0 100.0 100.0 Ghana.- 21.5 - - Greece.222.0 569.9 945.0 739.0 Guinea.- 15.0 45.0 - Honduras...... 16.0 - 93.0 - HongKong ...... 16.3 629.0 748.7 363.7 India...... 50.0 55.0 50.0 61.5 Indonesia...... 87.7 1,622.7 670.4 807.3 Iran...... 1,760.5 1,132.0 - - (conotiIUed) 146 Statistical Annex Publicized EurocurrencyCredits, by Borrower Entity, 1977-79 andFirst Half 1980 (continued) (USSmillions) PublicizedEurocurrency credits: years First Half Categoryof borrowerentity 1977 1978 1979 1980(P)

Developing countries or other areas (coatinued) Iraq...... - 184.5 - - Ivory Coast...... 273.0 159.4 137.3 262.1 Jamaica...... 32.0 - 126.0 - Jordan...... 196.0 110.0 118.0 - Kenya...... - - 212.0 10.0 Korea,Republic of ...... 796.0 1,699.0 2,589.5 937.3 Kuwait...... 46.0 186.0 19.4 44.0 Lebanon...... - 155.0 - - Lesotho...... - - 10.0 - Liberia...... 30.0 60.0 27.8 - Madagascar...... 3.0 29.6 26.3 - Malawi...... 25.0 12.0 50.0 11.5 Malaysia...... 130.0 1,077.0 197.3 1,050.0 Mauritania...... - 18.0 - - Mauritius...... 37.0 - 50.0 - Mexico...... 2,895.4 6,553.6 7,654.5 1,609.0 Morocco...... 702.1 620.0 450.0 30.0 Mozambique...... - - - 20.0 Nauru,Republic of ...... 25.0 25.0 - Nicaragua...... 40.0 15.0 - - Niger...... - - 37.0 5.5 Nigeria...... - 1,750.0 1,116.1 218.0 Oman...... 13.0 - 150.0 - Pakistan...... 27.0 6.0 150.2 107.0 Panama...... 147.0 553.5 155.0 210.0 PapuaNew Guinea...... 25.0 60.0 35.0 - Paraguay...... - - 7.0 - Peru...... 144.4 - 525.4 33.0 Philippines ...... 704.7 1,872.0 1,672.5 709.8 Portugal...... 87.0 641.2 811.0 190.0 Qatar...... 350.0 275.0 - - SaudiArabia ...... 126.8 179.9 258.0 71.1 Senegal...... 25.0 60.0 - - Singapore...... - 100.0 149.3 230.0 SouthAfrica ...... - - 52.1 - Spain...... 1,880.0 2,200.2 3,510.8 1,988.0 Sri Lanka...... - - 50.0 - Sudan...... - 9.5 - Swaziland...... - 28.0 - Tanzania...... - - 12.0 - Thailand...... 183.4 205.5 196.8 275.0 Trinidad andTobago ...... 150.0 - 39.0 96.0 Tunisia...... 145.0 195.0 154.2 11.7 Turkey...... 170.0 350.0 532.0 - UnitedArab Emirates...... 1,036.8 706.2 371.6 19.2 Uruguay...... 60.0 230.0 40.0 50.0 Venezuela...... 1,650.1 2,079.6 3,225.9 625.0 Viet Nam...... 74.1 66.3 YemenArab Republic...... - 17.0 23.0 - Yugoslavia...... 371.4 744.8 1,512.0 549.0 Zambia...... - - 12.8 - Taiwan...... 480.5 176.9 617.7 160.0 Total...... 2,145.20...... 38,276.2 42,356.7 14,506.5 Stactstical Annex 147 Table 9

PublicizedEurocurrency credits: years First Half Catecoryof borrowerentity 1977 1978 1979 1980(P) Centrallyplanned countries and organizations Bulgaria...... 245.0 239.0 202.2 China...... - - 2,995.0 335.2 Cuba...... 10.0 16.8 116.2 Czechoslovakia...... 150.0 150.0 450.0 GernanDemocratic Republic ...... 692.0 782.0 636.0 21.0 Hungary...... 350.0 515.0 550.0 250.0 InternationalInvestment Bank (IIB) ...... 1,100.0 500.0 875.0 Poland...... 19.0 374.0 806.7 15.6 Rorrania...... 125.0 725.3 280.0 458.0 USSR...... - 400.0 320.0_ Total.2,2691.0Total~~~~~~~~~~~~~~~~~~~~ ...... 2610 ...... 3,702.1 73111787,231.1 1,079.8 Internationalorganizations AfricanDevelopment Bank (AfDB) ...... 125.0 150.0 275.0 410.0 Cen':ralAmerican Bank for EconomicIntegration (CABEI).. 22.0 31.7 20.0 Corporaci6nAndina de Fomento(CAF) ...... 50.0 - - 50.0 EuropeanCoal and SteelCommunity (ECSC) ...... - - 15.0 NordicInvestment Bank (NIB) ...... - - - 30.0 Total...... 197.0 181.7 310.0 490.0 Others Unallocatedborrowers I ...... 97.0 220.0 186.2 100.0 Total...... 97.0 220.0 186.2 100.0 Recapitulation IndLstrializedcountries ...... 11,055.1 31,343.5 18,807.2 10,376.0 Developingcountries or otherareas ...... 20,145.2 38,276.2 42,356.7 14,506.5 Cenirallyplanned countries and organizations ...... 2,691.0 3,702.1 7,231.1 1,079.8 Internationalorganizations ...... 197.0 181.7 310.0 490.0 Others...... 97.0 220.0 186.2 100.0 GRANDTOTAL ...... 34,185.3 73,723.5 68,891.2 26,552.3

Includesthe followingcorporations:Adela International Financing Company, S.A.; Alufinance and TradeLimited; Blue Star. EllernianLines and Port- line; ExplosivosTotal Aquitaine,S.A.; GulfAviation Company Limited, Gulf Helicopters;Jordanian Syrian Land Transport Company, Megal Finance Comiany Limited;Scandinavian Airlines System (SAS); Transmediterranean Pipeline Company Limited; UnitedArab ShippingCompany. (P) Preliminary. Sotrce: WorldBank. 148 Statistical Annex Average Terms of EurocurrencyCredits for Selected Developing Table 10 Countries, Third Quarter 1978 to Second Quarter 1980 (Weightedby amount of loan) Averagespread (percentages) 1978 1979 1980 Country III IV I II [I1 IV I 11

Algeria...... 1.38 1.28 1.22 1.16 - 1.06 0.88 - Argentina...... 1.29 0.92 0.79 0.88 0.78 0.76 0.56 0.63 Brazil...... 1.34 1.26 1.17 0.99 0.86 0.72 0.79 0.98 Chile...... 1.75 1.10 - 0.96 0.85 0.92 0.95 1.12 Colombia...... 1.13 - 1.34 0.72 0.73 1.25 0.73 - Greece...... 0.81 0.78 - 0.63 0.55 0.51 0.70 0.63 Indonesia...... 1.30 0.86 - 0.83 0.68 - 0.82 0.87 IvoryCoast ...... - 2.00 - 1.57 1.63 1.50 1.50 - Korea,Republic of ...... 1.00 0.91 0.73 0.40 0.70 0.69 0.78 0.81 Malaysia...... - 0.95 - 0.56 1.00 - 0.49 - Mexico...... 1.04 0.93 0.84 0.70 0.73 0.69 1.38 0.66 Morocco...... 1.00 1.00 - 0.96 0.96 - 0.96 - Nigeria...... - 1.06 1.06 - 1.01 1.00 1.00 - Philippines...... 1.02 1.20 0.85 0.93 1.01 0.92 0.79 0.88 Portugal...... 1.00 1.00 1.12 1.07 0.79 0.88 0.76 0.75 Romania...... - 0.70 - 0.81 0.66 - 0.63 0.71 Spain...... 0.94 0.83 0.83 0.80 0.78 0.75 0.80 0.78 Thailand...... 0.97 1.10 - - 0.64 - 0.77 - Venezuela...... 0.73 1.07 1.05 0.82 0.42 0.58 0.68 0.69 Yugoslavia...... 1.26 1.09 0.96 0.99 0.89 0.98 0.88 1.11

Averagematurity (years) 1978 1979 1980 Country [i1 IV I II III IV I II

Algeria...... 7.3 8.6 8.9 7.3 - 9.2 10.0 - Argentina...... 8.7 10.7 10.6 10.2 11.6 10.4 7.4 6.4 Brazil...... 11.2 11.5 10.8 11.0 12.5 12.0 10.8 9.0 Chile...... 8.0 9.6 - 10.0 10.6 9.8 10.0 7.2 Colombia...... 10.0 - 8.5 10.1 10.0 10.0 10.0 - Greece...... 7.5 9.6 - 12.0 10.0 10.2 9.5 8.0 Indonesia...... 6.7 9.5 - 9.9 10.0 - 9.8 9.6 IvoryCoast ...... - 8.0 - 10.0 10.0 7.6 10.0 - Korea,Republic of...... 9.6 9.3 9.9 9.1 9.2 9.6 8.4 8.0 Malaysia...... - 7.0 - 10.0 6.4 - 9.8 - Mexico...... 6.2 7.7 9.1 6.3 9.3 8.8 8.2 7.4 Morocco...... 8.0 9.0 - 10.0 10.0 - 10.0 - Nigeria...... - 8.0 8.0 - 7.8 8.0 7.5 - Philippines...... 10.0 9.3 9.8 8.8 12.9 10.9 11.7 8.0 Portugal...... 7.0 6.9 7.0 6.9 9.5 8.8 9.2 7.0 Romania ...... - 8.8 - 9.5 10.0 - 8.0 7.2 Spain...... 8.4 8.9 9.4 9.5 9.5 9.6 9.5 7.7 Thailand...... 10.0 6.0 - - 8.6 - 10.0 - Venezuela...... 9.5 6.9 5.8 9.4 1.7 7.9 8.0 6.2 Yugoslavia...... 7.0 7.7 11.3 10.0 10.6 8.6 10.0 7.1

Source:World Bank. 149

Bank Appendices

Financial Statements Page AppendixA BalanceSheet ...... 150 AppendixB Statementof Income...... 152 Statementof AccumulatedNet Income...... 152 Statementof Changesin GeneralReserve ...... 152 AppendixC Statementof Changesin FinancialPosition ...... 153 AppendixD SummaryStatement of Loans...... 154 AppendixE SummaryStatement of Borrowings...... 157 AppendixF Statementof Subscriptionsto Capital Stock andVoting Power...... 158 AppendixG Notesto FinancialStatements ...... 160 Raportof IndependentAccountants ...... 163 150 Bank Appendices Balance Sheet June30, 1980 andJune 30, 1979 Expressedin UnitedStates dollars (in thousands)-SeeNotes to FinancialStatements, Appendix G

Assets 1980 1979 DUEFROM BANKS Unrestrictedcurrencies (including interest-bearing demand deposits $213,140-1980,$31,078-1979) ...... $ 357,145 $ 175,689 Currenciessubject to restrictions-Note B ...... 176,945 123,976 $ 534,090 299,665

INVESTMENTS-NoteC Obligationsof governmentsand their instrumentalities...... $ 7,021,405 5,066,746 Time depositsand other obligations of banksand financial institutions ...... 2,655,435 4,640,475 9,676,840 9,707,221

RECEIVABLEON ACCOUNTOF SUBSCRIBED CAPITAL- Subjectto restrictions-Note B Non-negotiable,non-interest-bearing demand obligations ...... $ 497,272 541,718 Amountdue on subscribedcapital ...... 81,428 Amountsrequired to maintainvalue of currencyholdings ...... 1,950 2,289 580,650 544,007

RECEIVABLES-OTHER Salesof investmentsecurities ...... $ 29,283 373,404 Frompurchasers on accountof effectiveloans agreed to be sold(including undisbursedbalance $15,215-1980, $40,701-1979) . . 34,135 53,244 Accruedincome on loans...... 540,158 441,262 Accruedinterest on investments ...... 142,070 120,647 745,646 988,557

LOANS(See AppendixD) ...... $51,509,137 44,660,124 Less-Loansapproved but not yet effective...... 6,739,132 5,522,390 Effectiveloans (including undisbursed balance $18,095,330-1980, $16,263,687-1979)...... 44,770,005 39,137,734

OTHERASSETS Landand buildings-Lessaccumulated depreciation ($14,667-1980, $13,199-1979)...... $ 98,015 80,994 Unamortizedissuance costs of borrowings ...... 146,503 122,157 Notionalamounts required to maintainvalue of currencyholdings-Note B .. 513,417 460,399 Maintenanceof valueof capitalsubscriptions outstanding on loans, notyet due-Note B...... 1,384 5,998 Miscellaneous...... 116,076 65,944 875,395 735,492 $57,182,626 $51,412,676 Financial Statements 151 Appendix A InternationalBank for Reconstructionand Development

Liabilities, Capital and Reserves 1980 1979 LIABILITIES Accruedcharges on borrowings...... $ 802,524 $ 692,719 Amountsrequired to maintainvalue of currencyholdings-Note B...... 2,517 3,262 Notionalamounts required to maintainvalue of currencyholdings-Note B .. 150,998 142,271 Accountspayable and otherliabilities ...... 111,674 52,253 Payablefor investmentsecurities purchased ...... 97,172 506,297 Dueto InternationalDevelopment Association-Note E ...... 789,048 792,278 Undisbursedbalance of effectiveloans (See Appendix D) Heldby Bank...... $18,095,330 16,263,687 Agreedto be sold.15,215 40,701 18,110,545 16,304,388

Borrowings(See AppendixE) $29,729,319 26,741,324 Less-Receivableunder contracts 61,786 460,830 Principaloutstanding .$29,667,533 26,280,494 Less-Net unamortizeddiscounts and premiums 32,216 27,691 29,635,317 26,252,803

CAPITALAND RESERVES Capitalstock (See Appendix F and AppendixG-Note B) Authorizedcapital (SDR 70,500,000-1980, SDR 34,000,000-1979) Subscribedcapital (SDR 30,171,800-1980, SDR 28,990,200-1979) .$39,958,929 37,429,247 Less-Uncalledportion of subscriptions(SDR27,154,620-1980, SDR26,091,180-1979) .35,963,036 33,686,322 3,995,893 3,742,925

Paymentson accountof pendingsubscriptions (See Appendix F) ...... 06290 62. 18,823

Specialreserve-Note D...... 292,538 292,538

Generalreserve (See AppendixB and AppendixG-Note D) ...... 2,600,209 2,205,577

Accumulatednet income(See AppendixB) ...... 587,901 406,542 $57,182,626 $51,412,676 152 Bank Appendices

Statement of Income Appendix B InternationalBank for Reconstructionand Development

For the fiscal yearsended June 30, 1980and June 30, 1979 Expressedin UnitedStates dollars (in thousands)-SeeNotes to FinancialStatements, Appendix G Julyl-June30 1979/80 1978/79 Income Incomefrom loans: Interest...... $1,800,996$ 1,543,471 Commitmentcharges ...... 143,787 125,371 Incomefrom investments-NotesC and GC...... 834,498 743,940 Otherincome-Note G ...... _...... 20,249 11,788 Total Income...... $2,799,530 $2,424,570

Expenses Intereston borrowings ...... $1,975,469 $1,817,395 Administrativeexpenses-Notes F and G...... 197,967 172,027 Bondissuance and otherfinancial expenses ...... 38,193 28,606 Total Expenses...... $2,211,629 $2,018,028 Net Income-Notes A and D...... $ 587,901 $ 406,542

Statement of Accumulated Net Income Forthe fiscal yearsended June 30, 1980and June 30, 1979 Expressedin UnitedStates dollars (in thousands)-SeeNotes to FinancialStatements, Appendix G July1-June 30 1979/80 1978/79 Accumulatednet income at beginningof fiscalyear ...... $ 406,542 $ 238,111 Allocationto GeneralReserve ...... (306,542) (138,111) Transferto InternationalDevelopment Association-Note D ...... (100,000) (100,000) Net incomefor fiscal year ...... 587,901 406,542 Accumulatednet incomeat end of fiscal year...... $ 587,901 $ 406,542

Statement of Changes in General Reserve Forthe fiscal yearsended June 30, 1980and June 30, 1979 Expressedin UnitedStates dollars (in thousands)-SeeNotes to FinancialStatements, Appendix G Julyl-June30 1979/80 1978/79 Balanceat beginningof fiscal year...... $2,205,577 $1,952,751 Allocationof portionof accumulatednet income...... 306,542 138,111 Translationadjustments-Notes A and D0...... 88,090 114,715 Balanceat end of fiscalyear ...... $2,600,209 $2,205,577 Financial Statements 153

Statement of Changes in Appendix C InternationalBank for FinancialPosition Reconstructionand Development Forthe fiscal yearsended June 30, 1980and June 30, 1979 E:pressedin UnitedStates dollars (in thousands)-SeeNotes to FinancialStatements, Appendix G July1-June 30 1979/80 1978/79

Funds Provided Operations: Netincome (See Appendix B) ...... $ 587,901 $ 406,542 Itemsnot requiringor providingcash: Accruedincome on loansand investments ...... (120,319) (87,292) Accruedcharges on borrowingsand administrative expenses ...... 114,402 130,738 Depreciation...... 1,468 1,428 Amortizationof discounts,premiums and bondissuance expenses ...... 25,951 18,283 Cashprovided by operations...... $ 609,403 $ 469,699 Borrowings(See Appendix E) ...... 5,573,797 4,629,427 Adjustmentsof borrowingsoutstanding as a resultof currencydepreciations and appreciations(See Appendix E) ...... 604,200 899,049 Repaymentsof loansto the BankI ...... 976,718 842,565 ';alesof loans ...... 23,052...... 66,872 Decrease(increase) in amountsreceivable for investmentsecurities traded ...... 344,121 (373,041) Increasein capitalsubscriptions as a result of depreciationof the UnitedStates dollar in termsof the SDR ...... 110,426 146,430 Capitalsubscriptions and maintenanceof valueadjustments ...... 52,185 187,972 1'ranslation adjustments-NotesA and D...... 88,090 114,715 (Other...... 68,165 35,405 Total FundsProvided ...... $8,450,157 $7,019,093

FiundsUsed Disbursementson loans...... $4,369,045 $3,610,736 Adjustmentsof loansoutstanding as a result of currencydepreciations and appreciations ...... 437,730 815,465 Retirementof borrowings(See Appendix E) ...... 2,790,958 1,850,479 Decrease(increase) in amountspayable for investmentsecurities traded ...... 409,125 (456,135) F'aymentson transfersto InternationalDevelopment Association ...... 103,230 42,225 Other ...... 188,994180,154 Total FundsUsed ...... $8,299,082 $6,042,924

Iricrease in Unrestricted Currencies and Investments ...... $ 151,075 $ 976,169

ilhe dollar equivalentsof loan principalrepayments are recorded at the averageof the historicalrates of exchangeprevailing at the timethe fundsWeTe originally disbursed. The difference between the averagehistorical rates of exchangeand the marketrates at the end of eachquarter i; includedin Adjustmentsof LoansOutstanding as a Resultof CurrencyDepreciations and Appreciations.The dollar equivalentof theseloan rrincipalrepayments at the marketrates of exchangein effecton the datesof repayment,has been calculated to be $1,182,486,000($952,415,000 -- 1979). 154 Bank Appendices Summary Statement of Loans June 30, 1980and June 30, 1979 Expressed in United States dollars (in thousands)-See Notes to Financial Statements, Appendix G June 30, 1980

Effective loans held by Bank Loans Percent of approved total effective Disbursed Undisbursed but not yet andnon- Members liable as borrower or guarantor' portion portion 2 Total effective I effective loans Algeria ...... $ 283,136 $ 586,008 $ 869,144 $ 162,000 2.00 ArgentinaI ...... 503,164 438,780 941,944 237,000 2.29 Australia...... 114,429 - 114,429 - .22 Austria...... 17,057 - 17,057 - .03 Bahamas...... 1,270 8,253 9,523 - .02 Bahamas,Barbados, Grenada, Guyana, Jamaica, Trinidad andTobago, and UnitedKingdom 5.. 9,073 34,018 43,091 - .08 Bangladesh...... 64,400 - 64,400 - .12 Barbados...... 227 16,775 17,002 10,000 .05 Bolivia4...... 126,816 163,989 290,805 - .56 Botswana...... 58,157 37,878 96,035 4,400 .19 Brazil...... 2,382,332 1,883,978 4,266,310 695,000 9.63 Cameroon...... 164,041 112,989 277,030 37,500 .61 Chile...... 214,630 48,437 263,067 38.000 .58 Colombia ...... 1,085,371 718,176 1,803,547 609,498 4.68 Congo,People's Republic of the...... 42,918 7,472 50,390 - .10 CostaRica ...... 201,864 57,184 259,048 78,800 .66 Cyprus...... 63,262 43,792 107,054 16,000 .24 Denmark...... 7,866 - 7,866 - .02 DominicanRepublic ...... 38,772 45,457 84,229 145,000 .44 Ecuador...... 111,037 88,758 199,795 146,000 .67 Egypt,Arab Republicof ...... 369,825 514,189 884,014 206,000 2.12 El Salvador...... 96,392 83,953 180,345 - .35 Ethiopia...... 89,236 - 89,236 - .17 Fiji...... 35,121 17,122 52,243 15,500 .13 Finland...... 49,278 - 49,278 - .10 Gabon...... 25,575 1,823 27,398 - .05 Ghana...... 114,236 61,666 175,902 - .34 Ghana,Ivory Coast,and Togo 6 ...... 49,801 - 49,801 - .10 Greece...... 110,396 230,081 340,477 83,714 .82 Guatemala ...... 146,899 101,961 248,860 17,000 .52 Guinea ...... 95,780 - 95,780 - .19 Guyana...... 38,035 18,449 56,484 - .11 Honduras ...... 174,414 77,306 251,720 128,000 .74 Iceland...... 42,790 - 42,790 - .08 India...... 858,544 607,067 1,465,611 275,000 3.38 Indonesia ...... 976,143 1,664,771 2,640,914 481,000 6.06 Iran...... 697,600 53,373 750,973 - 1.46 Iraq...... 106,952 - 106,952 - .21 Ireland ...... 122,942 13,886 136,828 - .27 Israel ...... 125,150 23,339 148,489 - .29 Italy ...... 5,980 - 5,980 - .01 7 Ivory Coast ...... 283,980 204,111 488,091 49,400 1.04 Jamaica...... 177,074 113,739 290,813 - .56 Japan ...... 336,347 - 336,347 - .65 Jordan ...... 16,265 53,423 69,688 10,000 .15 Kenya' ...... 368,493 385,341 753,834 70 000 1.60 Kenya,Tanzania, and Uganda6...... 209,109 5,295 214,404 - .42 Korea,Republic of ...... 1,843,427 996,283 2,839,710 174,000 5.85 Lebanon...... 18,443 71,812 90,255 - .18 Liberia...... 72,356 45,444 117,800 12,000 .25 Madagascar ...... 36,815 1,647 38,462 - .07 Malawi ...... 24,578 4,845 29,423 - .06 Malaysia...... 562,618 458,883 1,021,501 50,000 2.08 Mauritania...... - - - 60,000 .12 Mauritius ...... 33,574 40,230 73,804 - .14 Mexico ...... 2,318,100 1,063,826 3,381,926 300,000 7.15 Morocco...... 597,872 594,198 1,192,070 146,000 2.60 New Zealand...... 23,780 - 23,780 - .05 Nicaragua...... 108,470 50,049 158,519 - .31 Nigeria ...... 630,075 340,876 970,951 387,300 2.64 Norway...... 34,426 - 34,426 - .07 Oman...... 14,670 9,475 24,145 22,000 .09 Pakistan...... 472,242 60,670 532,912 - 1.03 Panama ...... 147,042 120,708 267,750 35,000 .59 PapuaNew Guinea ...... 6,135 9,450 15,585 17,000 .06 Financial Statements 155 Appendix D InternationalBank for Reconstructionand Development

June30, 1980 Effective loans held by Bank Loans Percent of approved total effective Disbursed Undisbursed but not yet and non- Members liable as borrower or guarantor 1 portion portion 2 Total effective I effective loans Paraguay ...... $ 76,764 $ 116,600 $ 193,364 $ 36,000 .45 Peru ...... 394,033 245,586 639,619 55,000 1.35 Philippines ...... 904,829 1,138,671 2,043,500 264,000 4.48 Portugal ...... 104,332 270,007 374,339 179,000 1.07 Romania ...... 757,963 570,432 1,328,395 240,000 3.04 Senegal ...... 56,427 36,862 93,289 10,000 .20 Sierra Leone...... 17,356 751 18,107 - .04 Singapore...... 143,231 6,718 149,949 - .29 Spain ...... 295,871 31,764 327,635 - .64 Sri Lanka ...... 40,504 - 40,504 - .08 Sudan ...... 67,501 32,000 99,501 - .19 Swaziland ...... 16,636 28,394 45,030 - .09 SyrianArab Republic ...... 222,455 209,093 431,548 61,000 .96 Tanzania8 ...... 219,260 125,425 344,685 - .67 Thailand ...... 728,419 626,511 1,354,930 422,000 3.45 Togo...... 4,071 - 4,071 - .01 Trinidad andTobago ...... 63,799 6,583 70,382 18,620 .17 Tunisia...... 291,395 266,588 557,983 147,500 1.37 Turkey...... 1,124,515 972,522 2,097,037 254,000 4.56 Uganda9...... 2,234 - 2,234 - .01 UnitedKingdom ...... 23,456 - 23,456 - .05 Uruguay...... 89,503 42,119 131,622 97,900 .45 Venezuela...... 202,264 5,829 208,093 - .40 Yugoslavia ...... 1,505,701 838,395 2,344,096 211,000 4.96 Zaire...... 110,028 3,811 113,839 - .22 Zambia...... 412,263 67,328 479,591 25,000 .98 Sub-totalsmembers' ...... $26,031,612 $18,033,224 $44,064,836 $ 6,739,132 InternationalFinance Corporation I ...... 397,971 62,106 460,077 - .89 Taiwan10 ...... 245,092 - 245,092 - .48 Totals-June 30,1980 ...... $26,674,675 $18,095,330 $44,770,005 $ 6,739,132 100.00 Totals-June 30, 1979...... $22,874,047 $16,263,687 $39,137,734 $ 5,522,390

I In someinstances loans were made,with the guarantee Loans madeto the InternationalFinance Corporation are of a member,in territories whichat the time wereincluded not guaranteedby members. in that member'smembership but which subsequentlybe- 2 Theseamounts do not include$6,663,000 ($25,333,000 came independent.In order to avoid double counting, 1979)of effectiveloans, which the Bank hasagreed to sell liabilitiesfor theseloans are shown under the nameof the an- rn atcptoso 8,5,0 $5380017) originalmember (whose guarantee continues unaffected). andgrant participations ofe$8,52,00 participtions0-197gr)n Theseloans are shownbelow together with an indicationof t patn the memberunder whose name they are listed. Papua New basistaken in a numberof loansunder the termsof anaid Guinea,Kenya, Mauritius, Singapore, Zambia, Swaziland, cooperationagreement between a membercountry and the and Trinidad andand ToagohavebecmeTobago rimddadhave become mmbesmembers oftheof the into.Bank. irrevocableOf the undisbursedcommitments balance, to thedisburse Bank $62,066,000has entered Bankand have assumed liability on theseloans as borrower ($80 572000-1979) c r or guarantor. 3 Loanagreementstotaling$4,960,632,000($3,646,570,000 Amounts -1979) havebeen signed, butthe loansdo notbecome effective and disbursementsthereunder do not start until the GUARANTORS 1980 1979 borrowersand guarantors,if any,take certain actionsand Borrowers (in thousands) furnish certain documentsto the Bank, and agreements AUSTRALIA providingfor loanstotaling $1,778,500,000($1,875,820,000 PapuaNew Guinea...... $48,167 $47,938 -1979) havebeen approved by the Bankbut havenot been UNITEDKINGDOM signed.Those amounts are net of $3,468,000($5,460,000- Kenya...... 438 712 1979)which the Bankhas agreed to sell. Malta ...... 5 12 Mauritius. 1,197 1,542 4 One loan equivalent to $23,250,000is shown under Singapore...... 6,309 7,137 Bolivia(Guarantor) but is alsoguaranteed by Argentina. *Zambiaand Zimbabwe ...... 12,209 16,108 5 Loansmade to the CaribbeanDevelopment Bank for the Swaziland ...... ,573 2,726 benefitof the territoriesof the memberslisted (in the case ______and_Tobago______725_725of the United Kingdom, the territoriesare thoseof its Asso- 'Loans made for joint benefit of territories listed. ciated States and Dependenciesin the Caribbeanregion). (continued) 156 Bank Appendices

(concluded) AppendixD Summary Statement of Loans InternationalBank for June30, 1980and June 30, 1979 Reconstructionand Development Expressedin UnitedStates dollars (in thousands)-SeeNotes to FinancialStatements, Appendix G

Themembers will beseverally liable as guarantors to the 8 Includesportions of loansmade to corporationsof the extentof sub-loansmade in their territories. EastAfrican Community. 6 Membersare jointly and severally liable. 9Represents portions of loansmade to corporationsof Oneloan equivalentto $23,000,000is shownunder theEast African Community. IvoryCoast (Guarantor) but is alsopartially guaranteed by ID Representsloans made at a time whenthe authorities UpperVolta. onTaiwan represented China in the Bank.

Summary of Currencies Repayable on Effective Loans Currencies 1980 1979 Currencies 1980 1979

Australiandollars ...... $ 143,812 $ 118,761 Nicaraguancordobas ...... $ 164 $ 164 Austrianschillings ...... 155,317 59,474 Norwegiankroner ...... 68,645 41,548 Belgianfrancs ...... 208,217 209,173 Portugueseescudos ...... 8,793 8,328 Braziliancruzeiros ...... 4,353 8,868 Poundssterling ...... 230,520 211,339 Burmesekyats ...... 1,192 1,201 RialsOmani ...... 847 736 Canadiandollars ...... 190,821 148,298 SaudiArabian riyals ...... 163,535 168,734 Danishkroner ...... _. 34,677 33,967 Singaporedollars ...... 7,172 6,572 Deutschemark ...... 8,398,863 6,673,294 SouthAfrican rand ...... 82,229 34,981 Finnishmarkkaa ...... 26,375 17,977 Spanishpesetas ...... 63,364 63,534 Frenchfrancs ...... 156,571 149,383 Sri Lankarupees ...... 50 51 Ghanaiancedis ...... 1,406 1,406 Sudanesepounds ...... 2,370 2,353 Greekdrachmas ...... 2,406 2,829 Swedishkronor ...... 57,765 56,448 Indianrupees ...... 79,734 72,552 Swissfrancs ...... 5,683,680 4,661,452 Iranianrials ...... 33,635 33,011 NewTaiwan dollars ...... 25,216 27,003 Iraqidinars ...... 3,836 3,707 Tunisiandinars ...... 3,366 2,506 Irishpounds ...... 20,407 17,272 UnitedArab Emirates Italianlire ...... 58,207 58,480 dirhams...... 68,141 65,797 Japaneseyen ...... 4,121,192 3,707,567 UnitedStates dollars ...... 5,252,332 4,925,105 Kuwaitidinars ...... 323,889 366,863 Venezuelanbolivares ...... 112,151 113,689 Lebanesepounds ...... 4,589 9,700 Disbursedportion of effective Libyandinars ...... 117,556 110,293 loansheld by Bank...... $26,674,675 $22,874,047 Luxembourgfrancs ...... 9,301 8,343 Malaysianringgit ...... 44,061 40,057 Ad-Unibrsdprtion of Mexicanpesos ... . 27,449 27,444 effectiveloans held by Bank 18,095,330 16,263,687 Netherlandsguilders ...... 676,469 603,787 Effectiveloans held by Bank. $44,770,005$39,137,734

Maturity Structure of Effective Loans

Periods June 30, 1980 Periods June 30, 1979

July1, 1980 to June30, 1981. . $ 1,283,672 July1, 1979to June30, 1980. .$ 971,968 July1, 1981to June30, 1982 1,734,038 July1, 1980to June30, 1981 1,286,919 July1, 1982to June30, 1983 2,199,534 July1, 1981to June30, 1982 1,719,878 July1, 1983to June30, 1984 . 2,524,860 July1, 1982to June30, 1983 2,072,321 July1,1984 to June30, 1985 . .2,763,977 July1, 1983to June30, 1984 2,255,160 July1, 1985to June30, 1990 14,025,246 July1,1984 to June30, 1989 11,778,285 July1, 1990to June30, 1995 10,851,825 July1,1989 to June30, 1994 9,622,623 July1,1995 to June30, 2000 4,455,711 July1,1994 to June30, 1999 4,660,545 July1, 2000to June30, 2005 411,782 July1, 1999to June30, 2004 762,767 July1, 2005to June30, 2007 . 4,929 July1, 2004to June30, 2007 31,183 UndeterminedI ...... 4,514,431 UndeterminedI.. 3,976,085 Total. $44,770,005 Total .. $39,137,734

1 Representscancellations, prepayments and exchange adjustments which havenot beenallocated to specificmaturities. Financial Statements 157

Appendix E Summary Statement of Borrowings InternationalBank for June30, 1980and June 30, 1979 ReconstructionandDevelopment Expressedin UnitedStates dollars (inthousands)-SeeNotes to FinancialStatements, Appendix G

Operationsduring the fiscal year ended June3D, 1980 Repayments Principal andsinking Principal Weightedaverage outstanding fundand pur- outstanding effective Duedates at June30, chasefund Translation at June30 interestrates at June3, Currenciespayable 1979 Borrowings purchasesadjustments 1980 1980 1979 1980

Austrianschillings .... $ - $ 80,444 $ - $ (412) $ 80,032 7.95% -% 1982-1990 Belgianfrancs . . 85,325 - (8,910) 4,278 80,693 7.12 7.12 1981-1986 Canadiandollars 93,853 - (35,116) 1,128 59,865 6.08 6.49 1980-1993 Deutschemark . 7,061,064 2,169,497 (836,404) 415,569 8,809,7261 7.20 6.95 1980-1999 Frenchfrancs ...... 29,488 - (1,508) 1,374 29,354 7.15 7.15 1981-1987 Italian lire.51,636 - (3,903) (364) 47,369 7.22 7.23 1980-1988 Japaneseyen .3,976,516 762,393 (602,207) (3,018) 4,133,684 7.49 7.15 1980-2000 Kuwaitidinars .310,487 - (40,550) 9,000 278,937 7.06 7.07 1980-1992 Libyandinars .101,334 - - - 101,334 7.62 7.62 1983 Netherlandsguilders . . 426,042 - (21,744) 22,359 426,657 7.60 7.54 1980-1988 Poundssterling 9,788 - (703) 813 9,898 5.26 5.27 1981-1982 SaudiArabian riyals . 148,148 - - 2,016 150,164 8.00 8.00 1984 Swedishkronor 31,544 - (2,377) 972 30,139 6.55 6.58 1981-1992 Swissfrancs .4,485,330 959,667 (103,794) 148,449 5,489,6521,2 5.32 5.38 1980-1993 UnitedArab Emirates dirhams. 78,947 - (8,030) 2,036 72,953 8.00 8.00 1981-1989 UnitedStates dollars 9,733,010 1,202,752 (1,116,370) - 9,819,39238.18 7.82 1980-2002 Venezuelanbolivares. 118,812 - (9,342) - 109,470 7.92 7.92 1980-1989 Principalat facevalue ...... $26,741,324 $5,174,753 $(2,790,958) $ 604,200 $29,729,319 7.23 7.06 Less-Receivable under contracts..... 460,830 (399,044) - 61,7862 Principaloutstanding at facevalue ...... - $26,280,494 $5,573,797 $(2,790,958) $604,200 $29,667,533 Less-Net unamortized discountsand premiums...... 27,691 4,525 - 32,216 Totals...... $26,252,803 $5,569,272 $(2,790,958) $ 604,200 $29,635,317

'I n addition,the Bank has subsequently borrowed orentered intoagreementsto borrow SwF 150 million(US equivalent $92.7 million); and DM 1,002 million(US equivalent $570 million) which includes a refinancingof DM 152million (USequivalent $86.5 million) maturing August 1,1980. o Includesa contractto borrowfor a SwF108 million (USequivalent $61.8 million) issue of 5Yn%Bonds of 1980,due 1995for settlement on July 17,1980. 3 Includes$205million borrowed from the Interest SubsidyFund which isadministered by the Bank.This Fund,which obtained its resourcesfrom voluntarycontributions from membergovernments, was established to subsidizethe interest paymentsto the Bank on selectedloans made to poorerdeveloping countries.

Maturity Structure of Borrowings Outstanding Periods Jone30, 1988 Periods June30, 1979 July 1, 1980to June30, 1981...... $ 2,713,680 July 1,1979to June30, 1980. $ 2,519,777 July 1,1981to June30, 1982...... 3,134,285 July 1,1980to June30, 1981.2,728,946 July 1, 1982to June30, 1983...... 2,993,588 July 1, 1981to June30, 1982.2,394,417 July 1, 1983to June30, 1984...... 2,502,768 July 1, 1982to June30, 1983...... 2,771,490 July 1, 1984to June30, 1985...... 3,739,575 July 1, 1983to June30, 1984 ...... 2,290,140 July 1, 1985to June30, 1990...... 9,048,404 July 1, 1984to June30, 1989.9,244,140 July1,1990 to June30, 1995...... 3,502,065 July 1, 1989to June30, 1994...... 2,697,980 July 1, 1995to June30, 2000 ...... 1,793,250 July 1, 1994to June30, 1999 ...... 1,306,115 July 1, 2000to June30, 2003 ...... 239,918 July 1, 1999to June30, 2003 ...... 327,489 Total...... $29,667,533 Total.$26,280,494 00~~~~~~~~ Ct 0°0 00 5 . C OO m4r m0 mg o0 z C 0 09.- 0 i~O , 3~ mC0=*t ~ ~~ 0 0 0o0o~- o~ 004 0-.. =. onnmn nn0- - -~Ct- ~- - - C ) Co2 .o 0 o~ o~ O t 000 -. .=~ = 2 ~ 'toF0- M= 00>=04,0 2-44 8 0: -,Z-

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n~~~ _ c n 04b>~w~ 0o 00 bc 00 c>. 00 00 . .0' 00 00 0 ° 0 0 00 0 00 000--00(0000 0000400 cn_o _- o°ccncoo.>4c Financial Statements 159 AppendixF InternationalBank for Reconstructionand Developmenti

Amountspaid in Amountssubject Subscriptions (NotoB) to call (Note B) Votingpower Amounts Expressed Expressed expressed Expressed in Expressed in Per- in in current in current Num- Per- cent special special United special United her cent of drawing drawing States drawing States of of Nilembers Shares total rights rights dollars rights dollars votes total Libya...... 200 .07 SDR20,000 SDIR2,000 $ 2,649 SDIR18,000 $ 23,839 450 .13 Luxembourg...... 297 .10 29,700 2,970 3,933 26,730 35,401 547 .16 Nladagascar...... 209 .07 21,900 2,190 2,900 19,710 26,004 469 .14 NMalawiI...... 150 .05 15,000 1,500 1,987 13,500 17,879 400 .12 MlalaysiaI1...... 1,587 .53 158,700 15,870 21,018 142,830 189,161 1,837 .55 Mialdives...... 6 2 600 60 79 540 715 256 .08 MVali...... 173 .06 17,300 1,730 2,291 15,570 20,621 423 .13 MVauritania. .. .. 100 .03 10,000 1,000 1,324 9,000 11,919 350 .10 MVauritius.0...... 88 .06 18,800 1,880 2,490 16,920 22,409 438 .13 MVexico...... 2,280 .76 228,000 22,800 30,196 205,200 271,763 2,530 .75 Morocco...... 960 .32 96,000 9,600 12,714 86,400 114,426 1,210 .36 Nepal...... 146 .05 14,600 1,460 1,934 13,140 17,402 396 .12 Netherlands...... 7,679 2.55 767,900 76,790 101,699 691,110 915,292 7,929 2.36 New Zealand...... 1.847 .61 184,700 18,470 24,461 166.230 220,152 2,097 .63 Nicaragua. .~... . 91 .03 9,100 910 1,205 8,190 10,847 341 .10 Niger...... 100 .03 10,000 1,000 1,324 9,000 11,919 350 .10 NigeriaI...... 1,152 .38 115,200 11,520 05,257 103,680 137,312 1,402 .42 Norway...... 2,410 .80 241,000 24,100 31,918 216,900 287,258 2,660 .79 Oman...... 60 .02 6,000 600 795 5,400 7,152 310 .09 Pakistan...... 2,519 .83 251,900 25,190 33,361 226,710 300,250 2,769 .83 Panama...... 216 .07 20,600 2,160 2,861 19,440 25,746 466 .14 PapuaNew Guinea.... 171 .06 17,100 1,710 2.265 15,390 20,382 421 .13 ParaguayI...... - 60 .02 6,000 600 795 5,400 7,152 310 .09 Peru..:...... 735 .24 73,500 7,350 9,734 66,150 87,608 985 .29 Philippines...... 1,715 .57 171,500 17,150 22,713 154,350 204,418 1,965 .59 PDrtugal...... 1,324 .44 132,400 13,240 17,535 119,160 157,813 1,574 .47 Qatar. :...... 327 .11 32,700 3,270 4,331 29,430 38,977 577 .17 Roimania...... 1,621 .54 162,100 16,210 21,468 145,890 193,214 1,871 .56 Rwanda...... 150 .05 15,000 1,500 1,987 13,500 17,879 400 .12 St. Lucia...... 29 .01 2,900 290 384 2,610 3,457 279 .08 SaoTame and Principe.... 14 2 1,400 140 185 1,260 1,669 264 .0 Saudi Arabia...... 4,899 1.62 489,900 48,990 64,881 440,910 583,932 5,149 1.53 Senegal...... 362 .12 36,200 3,620 4,794 32,580 43,148 612 .18 Sierra Leonte...... 150 .05 15,000 1,500 1,987 13,500 17,879 400 .12 Singapore, ...... 320 .11 32,000 3,200 4,238 28,800 38,142 570 .17 Srlomon Islands ..... 17 .01 1,700 170 225 1,530 2,026 267 .08 Somalia...... 189 .06 18,900 1,890 2,503 17,010 22,528 439 .13 SoiuthAfrica...... 3,463 1.15 346,300 34,630 45,863 311,670 412,770 3,713 1.11 Sriain...... 3,371 1.12 337,100 33,710 44,645 303,390 401,804 3,621 1.08 Sri LankaI...... 827 .27 82,700 8,270 10,953 74,430 98,574 1,077 .32 Sidan ...... 600 .20 60,000 6,000 7,946 54,000 71,517 850 .25 Siriname...... - 162 .05 16,200 1,620 2,146 14.580 19,309 412 .12 SNaZiland...... 68 .02 6,800 680 901 6,120 8,105 318 .09 SwNeden..... __ 3,676 1.22 367,600 36,760 48,684 330,840 438,158 3,926 1.17 Strian Arab Republic... 508 .17 50,800 5,080 6,728 45,720 60,551, 758 .23 T.rnzania...... 350 .12 35,000 3,500 4,635 31,500 41,718 600 .18 Tiailand ...... 1,478 .49 147,800 14,780 19,574 133,020 176,169 1,728 .52 Togo...... 150 .05 15,000 1,500 1,987 13,500 17,879 400 .12 T'inidad and Tobago.... 535 .18 53,500 5,350 7,085 48,150 63,769 785 .23 Tujnisia...... 373 .12 37,300 3.730 4,940 33,570 44,459 623 .19 Tirkey ...... 1,286 .43 128,600 12,860 17,032 115,740 153,284 1,536 .46 Doanda...... 333 .11 3330 330 4,410 29,970 39,692 58 .1 Uriited Arab Emnirates.... 980 .32 98,000 9,800 12,979 88,200 116,810 1,230 .37 Ulriled Kirgdomn.... 26,000 8.62 2,600,000 260,000 344,339 2,340,000 3,099,049 26,250 7.82 U rilied States...... 70,583 23.39 7,058,300 705,830 934,787 6,352,470 8,413,084 70,833 21.11 U)per Volta...... 100 .03 10,000 1,000 1,324 9,000 11,919 350 .10 U,uguay...... 411 .14 41,100 4,110 5,443 36,990 48,989 661 .20 Vitnezuefa...... 1,972 .65 197,200 19,720 26,117 177,480 235,051 2,222 .66 Viel Nam...... 543 .18 54,300 5,430 7,191 48.870 64,722 793 .24 WesternSamoa...... 17 .01 1,700 170 225 1,530 2,026 267 .08 YemenArab Republic... 85 .03 8,500 850 1,126 7,650 10,132 335 .10 Yemen,People's DemocraticRepublic of,1 248 .08 24,800 2,480 3,284 22,320 29,560 498 .15 YuigoslaviaI...... 1,178 .39 117,800 11,780 15,601 106,020 140,411 1,428 .43 Ztire ...... 900 .32 96,000 9,600 12,714 86,400 114,426 1,210 .36 Zt mbia I ...... 648 .21 64,800 6,480 8,582 58,320 77,238 898 .27 Totals-June 30, 1980....301,718 100.00Snt30,171,800 SOR3,017,180 $3,995,893 SnR27,154,620 $35,963,036 335,468 100.00 Totals-Jane 30, 1979. 289,902 S8R28,990,200SDR2,899,020 $3,742,925 S8R26,091,180 $33,686,322 323,402

Akmountsaggregating the equivalentonf$6,290,800 have been received tram membersnsraccount of increasesin subscriptinns, whichare in process Oot", pietior: Barbandos$37,000, Bolivia $65,000, Ktvwait $631,000, Motlawi $313,8000, Malaysia $578,080, Nligeria $2,155,000, Paraguay $121,000, sni Lanka$793,080, Yuoeslav'ia $1,440,988 and Zamnbia $154,000. 2Lens tbun .085 percent. 160 Bank Appendices Notes to Financial Statements

June30, 1980and June 30, 1979 Summary of Significant Accounting and differencebetween average cost and proceedsof sales,are Related Policies recordedas an elementof incomefrom investments. Capital Stock Loans From 1973until March31, 1978,the Bank's capitalstock, All of the Bank'sloans are madeto. or guaranteedby. mem- which is expressedin the Bank'sArticles of Agreementin berswith the exceptionof loansto the InternationalFinance terms of "United Statesdollars of the weightand fineness in Corporation.The principalamounts of loansare repayablein effecton July 1,1944"(1944 dollars), has beentranslated by the currencieslent. Intereston loansis also payablein the the Bankfor purposesof its financialstatements into current currencieslent. The Bank has not suffered any losseson UnitedStates dollars at the rate of $1.20635per 1944dollar. loan receivablesand it has a policyof not participatingin Sincethe effectivenesson April 1, 1978, of the Second moratoriaor reschedulings.No losses on loanreceivables are Amendmentto the Articlesof Agreementof the International anticipatedand, accordingly,no reservefor loan losseshas MonetaryFund (the Fund),currencies no longer have par been established;however, should such lossesarise they valuesin terms of gold. The Bank is examiningthe im- wouldbe includedin the determinationof net income. plicationsof this changeon the valuationof its capitalstock. No decisionson this matter have been taken. However Administrative Expenses for purposesof the financialstatements at June 30, 1980: A managementfee is chargedto the InternationalDevelop- 1979 and 1978,the Bank has expressedthe value of its mentAssociation and a serviceand support fee to the Inter- capitalstock on the basisof the special drawingright(SDR) nationalFinance Corporation representing their respective in terms of UnitedStates dollars as computedby the Fund, sharesof the administrativeexpenses of the Bank. $1.32438per SDRon June 30, 1980($1.29110 per SDRon Disposition of Income and General Reserve June30, 1979).(See Note B. This notealso shows what the The Bankhas notdeclared or paidany dividendsto its mem- value of the Bank'scapital stock would have been if ex- hers. Commencingin 1950,a portion or all of the accumu- pressedin termsof $1.20635 per 1944 dollar.) For the time latednet income has been allocated to theGeneral Reserve. beingpayments on account of subscriptionswill continueto (SeeNote D.) be acceptedat the equivalentof $120,635per shareof capital Since1964, it has beenthe Bank's policyto transferto the stock. InternationalDevelopment Association part of the year'sin- Translation of Currencies comewhich was not neededfor allocationto reservesor The financial statementsare expressedin United States otherwiserequired to be retainedin the Bank'sbusiness and dollars solely for the purposeof summarizingthe Bank's accordinglycould have beenprudently distributedas divi- financial positionand the results of its operationsfor the dends.Such transfers are accountedfor as a chargeto accu- convenienceof its membersand other interestedparties. mulatednet income. The Bankis an internationalorganization which conducts its Note A-Translation of Currencies operationsin thecurrencies of all of its members.The Bank's A Statementissued in 1975by theFinancial Accounting Stand- resourcesare derived from its capital,borrowings and accum- ards Boardin the UnitedStates requiresthat foreign cur- ulated earningsin the variouscurrencies of its membersand rencytranslation adjustments be includedin the determina- Switzerlandand are held, investedor lent in thosesame cur- tion of net incomefor the periodin whichthey occur; how- rencies.The Bank matchesits borrowingobligations in any ever, in view of its characteras an internationalorganization onecurrency with assets in thesame currency, as prescribed andits relatedfinancial policies described previously, the by its Articlesof Agreement,primarily by holding,or lending Bankdoes not deemthis Statementto be applicablein the the proceedsof its borrowingsin the same currenciesin circumstances.Had the Bankcomplied with this Statement, which they are borrowed.Borrowed funds are sometimes netincomeforthefiscal yearendedJune30, 1980 would have temporarilyconverted into other currenciesand at the same increasedby $88,090,000($114,715,000 for the fiscal year time, forwardexchange contracts are entered into in orderto endedJune 30, 1979)and the GeneralReserve would have recoverthe currencyconverted. The Bankmaintains a neu- decreasedby the sameamount. tral currencyposition with respectto its other resourcesby not convertingone currencyinto anotherexcept for small Note B-Capital Stock, Restricted amounts requiredto meet certain obligationsand opera- Currencies and Maintenance of Value tional needsof the Bank. CapitalStock: In the Articlesof Agreement,the capitalstock In general,the Banktranslates its assetsand liabilities in of the Bankis expressedin termsof "United Statesdollars of currenciesother than UnitedStates dollars at marketrates the weight and fineness in effect on July 1, 1944" (1944 of exchangeto the UnitedStates dollar at the end of each dollars). quarterwith the exceptionof buildingsand certain deferred On April 30, 1976,the Boardof Governorsof the Fundap- chargeswhich are translated at exchangerates in effectwhen proved proposedamendments to the Fund's Articles of the buildingswere acquired or the chargesincurred. Income Agreement(the SecondAmendment) which entered into and expensesother than depreciationand amortization force on April 1,1978. Underthe SecondAmendment, cur- chargesare translatedat an averageof the marketrates of renciesno longerhave par values,gold is abolishedas a exchangein effect duringeach quarter. commondenominator of the monetarysystem and all calcu- Underthe Bank'spresent policies, adjustments arising from lationsfor the purposesof the Fund'sArticles are madeon thetranslation of currenciesto the currentUnited States dol- the basisof the specialdrawing right (SDR).When the SDR lar equivalentwould notnow or in the future result in real- wasintroduced into the Fund'sArticles in 1969,it was ex- izedgains or lossessuch as wouldresult from the conversion pressedin terms of a specifiedweight of goldequal to the of the variouscurrencies into UnitedStates dollars. Accord- goldcontent of the 1944dollar. SinceJuly 1, 1974,the value ingly, translationadjustments, with the exceptionof those of the SDRin terms of UnitedStates dollars hasbeen based relatingto capital subscriptionsdescribed in Note B, are on the weightedrelative values of a numberof major cur- chargedor creditedto the GeneralReserve rather than in- rencies(the basket),including the UnitedStates dollar. The come.(See NoteA.) In thosefew instanceswhere currencies value of the SDR on July 1, 1974,expressed in terms of are convertedto anothercurrency, the resultinggain or loss, UnitedStates dollars, was$1.20635, which was the equiva- if any, is includedin the determinationof net income. lent of one1944 dollar. On March31, 1978,the Fundmade certainchanges in the basketof currencieseffective July 1, Investments 1978,such that the valueof the revisedbasket in terms of Investmentsecurities are recordedat costor amortizedcost. any currencywas exactly the same,at June30, 1978,under Gainsor losseson salesof investments,measured by the the revisedvaluation as under the then existingvaluation. Financial Statements 161 Appendix G InternationalBank for Reconstructionand Development

On April 25, 1980,the Interim Committeeof the Boardof the memberto makeadditional payments to the Bankin the Governorsof the Fundannounced that it favoredsimplifying event that the par valueof its currencyis reducedor the the SDRby reducingthe numberof currenciesin the basket foreignexchange value of its currencyhas, in the opinionof and askedthe Fund'sExecutive Board (which has the power the Bank,depreciated to a significantextent in its territories, to revisethe basket)to examinethe matterfurther and to and(2) the Bankto reimbursethe memberin the eventthat take the necessaryaction. the par value of its currencyis increased.Following the As a result of the SecondAmendment and the simultaneous establishmentof centralrates by severalmembers in lieu repealof Section2 of the Par Value ModificationAct (31 of existingpar values in March1973, the ExecutiveDirectors U.S.C.449), the provisionof UnitedStates law definingthe decidedthat, for all membersthat establishedcentral rates par valueof the UnitedStates dollar in termsof the SDRand for their respectivecurrencies, pending the establishmentof gold, the pre-existingbasis for translatingthe term "United newpar values,maintenance of valueobligations be settled Statesdollars of the weightandfineness in effecton July 1, on the basisof thosecentral rates. These obligations of the 1944" into current UnitedStates dollars or into any other membersand of the Bank becomeeffective immediately currencyno longerexists. uponthe happeningof thoseevents with respectto holdings TheGeneral Counsel of the Bankhas rendered a legalopinion of restricted currenciesrepresented by currencybalances concludingin substancethat uponthe entry into forceof the anddemand obigations. With respect to restnctedcurrencies SecondAmendment references in the Bank's Articles of out on loan,these obligations become effective only as and Agreementto the 1944dollar shouldbe readas referringto when such currenciesare recoveredby the Bank, except the SDR,as determinedfrom time to time by the Fund,and that in severalcases the Bank andthe membersconcerned the mutualobligations of eachmember and the Bank, with haveagreed to makeprovisional settlements of such obliga- respectto maintenanceof valueof certaincurrency holdings, tions, by meanSof one or more paymentsover periodsnot will bemeasured by the value of thecurrency in questionin exceedingfiveyears. AtJune 30,1980, $1,280,000($1,655,OOO termsof theSDR at anygiven time. -1979)was receivable and $2,517,000 ($3,262,000-1979) was payableby the Bankon such provisionalsettlements. The GeneralCounsel has, however,also statedthat m the Theseamounts are includedin AmountsRequired to Main- exerciseof their statutory power under Article IX of the tain Valueof CurrencyHoldings under the headingsReceiv- Bank'sArticles, the ExecutiveDirectors could conclude that able on Accountof SubscribedCapital, and Liabilities,re- the 1944dollar would be takento mean1.20635 current dol- spectively. lars, with the consequencethat maintenanceof valuewould be measuredby that standard. Prior to April 1, 1978,where market rates of exchangewere not relatedto par valuesor centralrates, as in the casesof A membergovernment has raisedthe questionwhether the a majority of members,and where there were differences substitutionof a new unit of value, insofaras it would give betweenmarket rates of exchangeand the rates at which rise to any new obligationswith respectto maintenanceof capital subscriptionsof membershad been paid or were value and capital stock subscriptionpayments, should be payablesuch differences were shown as TranslationAdjust- madeonly by amendmentof the Articles.It alsoraised ques- ments on Capital Subscriptionsunder the headingOther tions as to the desirability of retaining the principle of Assets.These amounts represented notional receivables and maintenanceof value, the form in which it is applied and payableswhich would becomemaintenance of valueobliga- the appropriatenessof substituting a unit of value other tions if and whenthe provisionsof Article 11,Section 9 of thanthe SDR.Pending action on these questions, the fi- the Articlesof Agreementor the decisionof the Executive nancialstatements have been drawn up in accordancewith Directorsdescribed above could be applied. Accordingto the GeneralCounsel's opinion, that is, the value of the the legalopinion of the Bank'sGeneral Counsel referred to capitalstock is expressedin terms of the SDR. in this Note B under Capital Stock, maintenanceof value The Bank's capital comprises705,000 (340,000-1979) pursuantto Article I I, Section9 of the Articlesof Agreement authorizedshares of the par valueof SDR100,000 each, of would be determinedon the basisof the SDR,and is treated Nhich301,718 shares have been subscribed (289,902-1979). in the financialstatements on this basis. Sincethe Bankis ren percentof the capitalsubscriptions has beencalled and still consideringthe implicationsof the SecondAmendment paidin; the remainingninety percentis subject to call by andin view of the questionsreferred to above,the timingof the Bankonly whenrequired to meetthe obligationsof the any establishmentand settlement of these notionalmainte- Bankcreated by borrowingor guaranteeingloans. As to nanceof valueitems $513,417,000($460,399,000-1979) re- $31,967,143,000($29,943,397,000-1979), the restrictionon ceivableand $150,998,000 ($142,271,000-1979) payable are (callsis imposedby the Articles of Agreementand as to uncertain.Accordingly, they are includedin Other Assets, $3,995,893,000($3,742,925,000-1979) by. resolutions of the and Liabilitiesas notionalmaintenance of valueobligations. 13oardof Governors. Effect of Valuationin Terms of the SDR: Expressingthe RestrictedCurrencies: The portionof capital subscriptions valueof the Bank'scapital stock in terms of the SDRrather paidinto the Bankisdivided into two parts:(1)$399,589,000 than in terms of $1.20635does not havea material effect ('$374,293,000-1979)initially paid in gold or UnitedStates on the financial position or results of the operationsof dollars,and (2) $3,596,304,000($3,368,632,000-1979) paid the Bank. If the valueof the capitalstock were expressed in the currenciesof the respectivemembers. Of this latter in terms of $1.20635,the subscribedcapital would have portion an amount of $147,349,000($143,647,000-1979) been $36,397,751,000($34,972,328,000-1979) instead of wassubsequently converted by membersinto UnitedStates $39,958,929,000($37,429,247,000-1979), the uncalledpor- dollars,subject to the right of the Bankor the membersto tion of subscriptions$32,757,976,000 ($31,475,095,000- reverse the transactions.The amountspaid in goldor United 1979)instead of $35,963,036,000($33,686,322,000-1979), Statesdollars or subsequentlyconverted by membersinto the paid-in capital $3,639,775,000($3,497,233,000-1979) uJnitedStates dollars are freely usableby the Bankin any of insteadof $3,995,893,000($3,742,925,000-1979) and the net its operations;however, the remainingamounts paid in the maintenanceof valueobligations to theBank would have been currenciesof the members,hereinafter called restricted $59,484,000($113,822,000-1979) instead of $363,236,000 currencies,are usableby the Bankin its lendingoperations ($323,153,000-1979).Should the ExecutiveDirectors con- iinly with the consentof the respectivemembers. The equiva- cludethat the capitalwould be measuredby somestandard lent of $2,289,419,000($2,200,146,000-1979) has been used other than the SDR,any adjustmentof the amountsshown with suchconsent. in the Balance Sheet as Notional Amounts Requiredto Mlaintenanceof Value:Article 11,Section 9 of the Articlesof MaintainValue of CurrencyHoldings would require a cor- Agreementprovides for maintenanceof value,as of the time respondingadjustment of the capital. of subscription,of such restrictedcurrencies, requiring (1) GeneralCapital Increase:On January4, 1980,the Bank's

(continued) 162 Bank Appendices

Notes to Financial Statements (concluded) Appendix G InternationalBank for Reconstructionand Development June39, 1990 and June301,1979 Note B (continued) GeneralReserve has increasedby $88,090,000during the Boardof Governorsadopted a resolution(the GeneralCapital fiscal year($114,715,000-1979); it has beencredited with IncreaseResolution) which increasesthe authorizedcapital $103,857,000($137,495,000-1979) representing net trans- stock of the Bank by 331,500shares (subject to adjustment lation adjustmentsas a result of currency depreciations as describedbelow); this representsan increaseof approxi- andappreciations and chargedwith $15.767,000($22,780,000 mately$40,000,000,000. Subscriptions by membersto about -1979) representinga compensatingeffect of the depreci- 93% of these sharesare authorized.The GeneralCapital ation of the United Statesdollar, in terms of the SDR,on IncreaseResolution further providesthat the paid-inportion theone percentportion of the Bank'spaid-in caoital and the of the sharesauthorized to be subscribedwill be 7.5% (in nine percentportion releasedby certainmember countries contrastto the 10%paid-in portion of existingcapital stock); for lending in United States dollars. (See Statementof subscribingmembers will be requiredto pay 3/4% of the Changesin GeneralReserve-Appendix B.) Sincethe value subscriptionprice in gold or United States dollars and of the SDRin terms of current dollarsmay vary from dayto 6-3/4% in their respectivecurrencies. Under the Articles, day,that portionof the Bank's capitalpaid in or releasedin eachmember is entitled to 250membership votes plus one dollars will be subjectto further adjustmentat the end of vote for each share subscribed.To avoid dilution of the eachquarter. voting power of certain memberswhich would otherwise The SpecialReserve consists of loan commissionsset aside occuras this increasein capitalis subscribed,the Boardof pursuantto Article IV, Section6, of the Articles of Agree- Governorsadopted another resolution on January4, 1980 ment which are to be held in liquid assetsand to be used whichincreases the authorizedcapital stock by an additional only for the purposeof meetingliabilities of the Bankon its 33,500shares (representing a further increaseof approxi- borrowingsand guarantees.The Special Reserveassets mately$4,000,000,000) and authorizeseach member to sub- compriseobligations of the United States Governmentand scribe 250shares of this additionalcapital, none of which its instrumentalitiesand are included under the heading would be paidin. Nosubscriptions authorized by thesereso- Investments.As a result of a decisionmade in 1964,the lutionsmay be acceptedprior to September30, 1981. allocationof such commissionsto the SpecialReserve was The GeneralCapital IncreaseResolution provides for a re- discontinuedin respectof subsequentloans and no further duction of the numberof sharesauthorized by it if, as a additionsare being madeto it. resultof determinationson the valuationof the Bank's capital stock, the 331,500shares authorized represent an Note E-Contributions to the International increasein authorizedcapital in excessof $40,000,000,000,Development Association calculatedas of the time of suchdeterminations on the basis The Bankhas authorizedtransfers by way of grantsto the of thestandard of value determined. In thiscase the number I nternationalDevelopmentAssociationtotaling$1,425,000,000 of sharesauthorized by the General Capital increase Resolu- from net incomefor the fiscalyears ended June 30, 1964 tionwill bereduced so that their aggregate par value at that throughJune 30, 1979.Of this amount$789,048,000 was time will be equivalent(to the nearestnumber of shares)to payableat June 30, 1980.($1,325,000,OCO had beenauthor- $40,000,000,000,the number of sharesauthorized to be izedf romnet income through the fiscal year ended June 30, subscribedby each member will be correspondingly reduced, 1978and $792,278,000 was payable at June30, 1979.) and adjustmentswill be made on accountof any shares Note F-Staff Retirement Plan alreadysubscribed by membersin excessof their reduced The Bank has a contributory retirementPlan for its staff, authorization. which also coversthe staff of the InternationalFinance Corporation.All contributionsto the Plan and all other Note C-Investments assetsandincomeof the Planareheld bythe Bankseparately The marketvalue of investmentsecurities was $9,628,803,000 from other assetsof the Bank andthe Corporationand can ($9,611,863,000-1979)compared with a cost or amortized be usedonly for the benefitof the participantsin the Plan cost of $9,676,840,000($9,707,221,000-1979), and a face andtheir beneficiaries.The Bankfunds all costsof the Plan valueof $9,741,989,000($9,757,431,000-1979), including as accrued;which includes amortization of prior service investmentsnot traded in the marketwhich were valued at costsover a 40-year period. The cost of thePlan to theBank their cost of $1,225,588,000($3,271,021,000-1979). Invest- for the fiscal year endedJune 30, 1980was $38,065,000 ments include securities purchasedunder agreementsto ($30,605,000for the fiscal year endedJune 30, 1979).An resellamounting to $1,715,000($8,835,000-1979). Obliga- actuarialvaluation of the Planis madeannually. At December tionsof theUnited States Government and its instrumental- 31,1979, the market value of thePlan's assets exceeded the ities having a cost or amortized cost of $292,538000 actuarially computedvalue vested benefit

($292538,00-179)nd amarkt vau the '2032,0 certainchanges in the actuarialassumptions were made to ($289,088,000-1979),set aside in respectof the Special reflectthe actualexperience of the Plan.The resultof these Reserve,as describedin Note D, are includedunder this changesin the Plan'scost in fiscal year 1980was not sig- heading. nificant. The annualizedrate of return on the averageinvestments held during the period, basedon the portfolio held at the Note G-Income and Expenses endof eachMonth and including realized gains and losses, Incomefrom investments includes net looses of $103,415,000 was8.76% (7.55%-1979). ($73,134,000-1979)resulting from sales of investments. Otherincome includes net gains of $11,903,000($10,025,000 Note D-Reserves and Net Income -1979) resulting from repurchasesof obligationsof the In July 1980,the ExecutiveDirectors allocated $469,901,000 Bank prior to maturity pursuantto the terms of the respec- tothe GeneralReserve out of the$587,901,000income earned tive borrowingagreements. Administrative expenses are net in the fiscal year endedJune 30, 1980and have recom- of the managementfee of $140,300,000($121,425,000- mendedto the Board of Governorsthat the balanceof 1979)charged to the InternationalDevelopment Association $118,000,000be transferredby way of grant to the Inter- andof the serviceand support fee of $2,447,000($2,197,000 nationalDevelopment Association. -1979) chargedto the InternationalFinance Corporation. In August1979, the Bankallocated $306,542,000 to the Gen- At June 30, 1980,interest and other chargesof $52,000 eral Reserveout of the $406,542,000net incomeearned in payableto the Bankon loanswere overdue by morethan 60 the fiscal year endedJune 30, 1979and in October1979, days. The principal disbursedand outstandingon these authorizedthe transfer of the balanceof $100,000,000by loans amountedto $47,982,078.Of the interest and other wayof grantto the InternationalDevelopment Association. chargesoverdue by morethan 60 days at June30, 1980, In accordancewith the policiesdiscussed in the Summaryof $4,000remained unpaid at July 30, 1980.It is not antici- SignificantAccounting and RelatedPolicies and NoteA, the patedthat thesedelays will result in any lossto the Bank. Financial Statements 163 Report of Independent Financial Statements Accountants Covered by the Foregoing Report 1801K Street, N.W. WASHINGTON,D.C. 20006 JULY30, 1980

-ro INTERNATIONALBANK FOR RECONSTRUCTIONAND DEVELOPMENT WVASHINGTON,D.C.

WVehave examined the financialstatements (Appendices A BalanceSheet .Appendix A through G) of InternationalBank for Reconstructionand Statementof Income.Appendix B D)evelopmentas of June30, 1980 and 1979, and for the years then ended.Our examinations of thesestatements were made Statementof AccumulatedNet Income...... AppendixB in accordancewith generally accepted auditing standards and accordinglyincluded such tests of the accountingrecords Statementof Changesi GeneralReserve. AppendixB Endsuch other auditing procedures as weconsidered neces- Statementof Changesin FinancialPosition ..... AppendixC saryin the circumstances. SummaryStatement of Loans.Appendix D Consistentwith past practice,the Bank records currency SummaryStatement of Borrowings.Appendix E translationadjustments, except those pertaining to the nine rercent portion of its capital stock, as chargesagainst or Statementof Subscriptionsto CapitalStock and creditsto the GeneralReserve. Statement 8 of the Financial VotingPower ...... AppendixF AccountingStandards Board requiresthatthese adjustments, Notesto FinancialStatements.Appendix G vwhichare set forth in the Statementof Changesin General Feserve,be includedin the determinationof net income; however,in view of the Bank'scharacter as an international organizationand its related financial policies, which are describedin the Summaryof Significant Accountingand FelatedPolicies (Translation of Currencies)and in NoteA, tie Bank doesnot deemthe applicationof this accounting principle to be appropriatein the circumstances,and we concurwith this conclusion. lo our opinion, the financial statementsexamined by us presentfairly, in termsof UnitedStates currency, the financial position of InternationalBank for Reconstructionand Cevelopmentat June 30, 1980and 1979,and the results of its operationsand thechanges in its financialposition for the years then ended, in conformity with generallyaccepted axounting principlesconsistently applied.

PRICEWATERHOUSE & CO.

165 'IDA Appendices

Financial Statements Page AppendixA Statementof Condition...... 166 AppendixB Statementof Income...... 168 Statementof Transfersfrom International Bankfor Reconstructionand Development...... 168 AppendixC Statementof Changesin ResourcesAvailable for Commitment...... 169 AppendixD SummaryStatement of DevelopmentCredits ...... 170 AppendixE Statementof VotingPower, and Subscriptions andSupplementary Resources ...... 172 AppendixF Notesto FinancialStatements ...... 175 Reportof IndependentAccountants ...... 178 166 IDA Appendices Statement of Condition June30, 1980and June 30, 1979 Expressedin UnitedStates dollars (in thousands)-SeeNotes to FinancialStatements, Appendix F

Assets 1980 1979 DUEFROM BANKS Unrestrictedcurrencies (including interest-bearing demand deposits$368-1980, $581-1979) ...... $ 334,530 $ 627,540 Currenciessubject to restrictions-NoteA ...... 55,576 55,713 $ 390,106 683,253 INVESTMENTS-NoteB Obligationsof governmentsand their instrumentalities...... $ 57,136 106,846 Time depositsand otherobligations of banks ...... 38,980 53,839 96,116 160,685 RECEIVABLEON ACCOUNTOF SUBSCRIPTIONS AND SUPPLEMENTARYRESOURCES-Note A Non-negotiable,non-interest-bearing demand obligations Unrestricted...... $ 8,282,030 5,741,267 Subjectto restrictions...... 126,137 154,062 Amountsdue on subscriptionsand supplementary resources ...... 79,183 538,096 Amountsrequired to maintainvalue of currencyholdings-Note C. 890 11,164 8,488,240 6,444,589 RECEIVABLES-OTHER InternationalBank for Reconstructionand Development...... $ 789,048 792,278 Frompurchaser on accountof effectivedevelopment credits agreedto be sold...... 1,500 3,335 Accruedservice charges on developmentcredits ...... 23,027 20,234 Accruedinterest on investments ...... 911 1,815 814,486 817,662 DEVELOPMENTCREDITS (See AppendixD) ...... $20,721,740 16,937,278 Less-Developmentcredits approved but not yet effective...... 2,732,500 1,697,300 Effectivedevelopment credits (including undisbursed balance $6,950,508-1980,$5,575,027-1979) ...... 17,989,240 15,239,978

OTHERASSETS Notionalamounts required to maintainvalue of currencyholdings- NotesA and C...... $ 108,395 99,094 Miscellaneous...... 28,795 17,772 137,190 116,866 $27,915,378 $23,463,033 Financial Statements 167 Appendix A InternationalDevelopment Association

Liabilities, Subscriptions, Supplementary Resources, 1980 1979 Transfers and Accumulated Net Loss

LIABILITIES Amountsrequired to maintainvalue of currencyholdings-Note C. $ 289 $ 5,678 Accountspayable and otherliabilities ...... 58,166 10,628 Notionalamounts required to maintainvalue of currency holdings-NotesA and C...... 15,034 4,794 Payablefor investmentsecurities purchased ...... - 15,065 Undisbursedbalance of effectivedevelopment credits (See AppendixD) Heldby Association...... $ 6,950,508 5,575,027 Agreedto be sold...... 13,012 15,232 6,963,520 5,590,259 Borrowingsfrom SwissConfederation-Note D ...... 112,129 109,428

SUBSCRIPTIONSAND SUPPLEMENTARY RESOURCES (See AppendixE andAppendix F-Note E) ...... 19,459,702 16,460,320

Paymenton accountof pendingsubscriptions (See Appendix E) . .. 5,536 16

TRANSFERSFROM INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOPMENT (SeeAppendix B and AppendixF-Note F) ...... 1,367,075 1,280,375

ACCUMULATEDNET(LOSS) INCOME Beginningof fiscalyear ...... $ (13,530) 32,365 Fiscalyear (See AppendixB and AppendixF-Note H) . (52,543) (45,895) (66,073) (13,530) $27,915,378 $23,463,033 168 IDA Appendices

Statement of Income Appendix B InternationalDevelopment Association

Forthe fiscal yearsended June 30, 1980and June30, 1979 Expressedin UnitedStates dollars (in thousands)-SeeNotes to FinancialStatements, Appendix F July1-June 30 1979/80 1978/79 Income Incomefrom development credits ...... $ 77,452 $ 67,602 Incomefrom investments ...... 11,010 17,106 Miscellaneousincome ...... 1 - Exchangeadjustments ...... 1,987 (1,152) TotalIncome ...... $ 90,450 $ 83,556

Expenses Managementfeeto International Bank for Reconstructionand Development ...... $ 140,300 $ 121,426 Operating Loss ...... $ (49,850) $ (37,870) Translationadjustments-Note G ...... (2,693) (8,025) Net Loss-NoteH ...... $ (52,543) $ (45,895)

Statement of Transfers from International Bank for Reconstruction and Development

Forthe fiscal yearsended June 30, 1980and June 30, 1979 Expressedin UnitedStates dollars (in thousands)-SeeNotes to FinancialStatements, Appendix F July1-June 30 1979/80 1978/79 Balanceat beginningof fiscalyear: Availablefor generalpurposes of theAssociation ...... $1,277,675 $1,189,600 Availablefor grantsfor agriculturalresearch and for controlof onchocerciasis...... 2,700 3,000 $1,280,375 $1,192,600

Transferfrom InternationalBank for Reconstructionand Development during fiscal year: Forgeneral purposes ofthe Association ...... 86,000 88,050 Forgrants for agriculturalresearch and for controlof onchocerciasis...... 14,000 11,950 Disbursedto approvedgrant recipients ...... (13,300) (12,225) Balanceat endof fiscalyear: Note F Availablefor generalpurposes of theAssociation ...... $1,363,675 $1,277,675 Availablefor grantsfor agriculturalresearch and for controlof onchocerciasis...... 3,400 2,700 Totals...... $1,367,075 $1,280,375 Financial Statements 169

Statement of Changes in Resources Appendix C InternationalDevelopment Availablefor Commitment Association Forthe fiscal yearsended June 30, 1980and June 30, 1979 Expressedin UnitedStates dollars (in thousands)-SeeNotes to FinancialStatements, Appendix F July1-June 30 1979/80 1978/79 Resources Provided Net loss(SeeAppendix B) ...... $ (52,543) $ (45,895) Add-certain translationadjustments as a result ol currency depreciationsand appreciations ...... 3,013 11,288 Decreasein resourcesprovided by operations ...... $ (49,530) $ (34,607) Add-net lossavailable for commitment ...... 52,543 Increase(decrease) in resources ...... $ 3,013 $ (34,607) From Members: Subscriptions,unrestricted ...... S 172 861 Supplementaryresources-Subscriptions and contributions to fifth replenishment .. 680,615 1,174,530 Adjustmentof resourcesprovided in prior fiscalyears as a result of currencydepreciations and appreciationsand adjustment resultingfrom changein basisof valuationof certainsubscriptions andsupplementary resources from 1960dollar to SDR . .368,771 340,909 Increasein resourcesprovided by members ...... 1,049,558 $1,516,300 Transfersfrom InternationalBank for Reconstructionand Development...... 86,000 88,075 Repaymentsof developmentcredits ...... 26,760 20,912 Grantparticipations in developmentcredits ...... - 8,300 Cancellationsand refundingsof developmentcredits ...... 26,278 13,569 Total increasein resourcesprovided ...... $ 1,191,609 $1,612,549

Ftesources Used Developmentcredit agreementsapproved ...... $3,837,5002 $3,021,480 Retirementof borrowings-NoteD ...... 312 Decrease in Resources Available for Commitment ...... $(2,646,203) $(1,408,931) Resources Available for Commitment Beginningof fiscalyear ...... 2,577,799 3,986,730 Endof fiscalyear ...... $ (68,404)2 $2,577,799

Compositionof Resources Available for Commitment Unrestrictedcurrencies ...... $ 334,530 $ 627,540 Iiivestments ..... 96,116 160,685 Unrestrictedreceivables on accountof subseaptionsand supplementary resources ...... 8,325,380 6,289.799 Receivables-Other...... 811,086 823,262 Otherassets ...... 44,337 39,338 Subscriptions and supplementary resources not yet due...... 22,220 1,964,378 Add-Net lossavailable for commitment' ...... 52,543 Less-Undisburseddevelopment credits (including development credits not yet effective) and otherliabilities ...... (9,754,616) (7,327,203) Totals...... $ (68,404) $2,577,799

'On August9, 1979,the ExecutiveDirectors decided that the Association'scommitment authority not be reducedby the amountof deficitsin fiscal year 1980or duringthe periodof the sixth replenishmentof the Association'sresources. In ordertoreflect this decision,the resourcesavailable for commitmenthave been increased by the amountof the lossat June30, 1980. Icludessixdevelopmentcreditstotaling$361,000,000,approvedby the Associationsubjecttothe availabilityof additionalcommitment authority. 170 IDA Appendices Summary Statement of Development Credits June 30, 1980and June 30, 1979 Expressedin UnitedStates dollars (in thousands)-SeeNotes to FinancialStatements, Appendix F June30, 1980 Effectivedevelopment credits held by Association Percent of total Development effectiveand Membersin whose creditsapproved non-effective territoriesdevelopment Disbursed Undisbursed but not yet development creditshave been made portionI portion2 Total effeCtiVe 3 credits Afghanistan...... 81,228 $ 111,997 $ 193,225 $34,100 1.10 Bangladesh...... 858,768 415,647 1,274,415 192,000 7.08 Benin...... 42,775 25,876 68,651 10,000 .38 Bolivia...... 63,058 29,278 92,336 16,000 .52 Botswana...... 15,654 53 15,707 - .08 Burma...... 132,831 139,487 272,318 90,000 1.75 Burundi...... 30,647 24,466 55,113 30,000 .41 Cameroon...... 133,910 62,742 196,652 31,000 1.10 CentralAfrican Republic...... 25,297 3,532 28,829 2,500 .15 Chad...... 35,961 17,892 53,853 19,100 .35 Chile...... 20,877 - 20,877 - .10 Colombia...... 21,426 - 21,426 - .10 Comoros...... 3,553 1,447 5,000 5,200 .05 Congo,People's Republic of the.... 20,979 1,224 22,203 35,000 .28 CostaRica ...... 5,000 - 5,000 - .02 DominicanRepublic ...... 17,641 4,441 22,082 -. 11 Ecuador...... 36,410 1,603 38,013 - .18 Egypt,Arab Republic of...... 284,576 283,296 567,872 215,000 3.78 ElSalvador...... 26,108 1,119 27,227 - .13 Ethiopia...... 231,647 119,512 351,159 -1.69 Gambia,The...... 13,273 14,220 27,493 - .13 Ghana...... 96,320 28,881 125,201 54,500 .87 Guinea...... 26,259 39,771 66,030 - .32 Guinea-Bissau...... 1,914 7,086 9,000 - .04 Guyana...... 16,939 11,640 28,579 - .14 Haiti...... 62,880 47,109 109,989 - .53 Honduras...... 49,717 9,234 58,951 25,000 .41 India...... 4,665,922 3,004,595 7,670,517 779,000 40.78 Indonesia...... 549,097 275,175 824,272 117,000 4.54 IvoryCoast...... 7,500 - 7,500 - .04 Jordan...... 71,764 13,667 85,431 - .41 Kenya...... 159,627 191,948 351,575 60,500 1.99 Korea,Republic of...... 113,628 - 113,628 - .55 LaoPeople's Democratic Republic ... 3,080 15,520 18,600 13,400 .15 Lesotho...... 21,979 22,799 44,778 16,000 .29 Liberia...... 20,319 23,645 43,964 - .21 Madagascar...... 107,582 94,953 202,535 48,000 1.21 Malawi...... 124,361 63,640 188,001 - .91 Maldives...... 23 3,177 3,200 - .02 Mali...... 110,212 57,439 167,651 8,000 .85 Mauritania...... 36,324 10,951 47,275 - .23 Mauritius...... 19,991 428 20,419 -. 10 Morocco...... 39,072 12,969 52,041 - .25 Nepal...... 65,068 136,363 201,431 33,000 1.13 Nicaragua...... 30,066 25,261 55,327 - .27 Niger...... 55,277 46,184 101,461 36,700 .67 Nigeria...... 37,659 - 37,659 - .18 Pakistan...... 788,717 299,953 1,088,670 144,000 5.95 PapuaNew Guinea ...... 44,603 25,178 69,781 13,000 .40 Paraguay...... 44,755 3,693 48,448 - .23 Philippines...... 33,199 89,017 122,216 - .59 Rwanda...... 52,941 35,747 88,688 21,000 .53 Senegal...... 93,699 52,833 146,532 42,300 .91 SierraLeone...... 27,708 6,260 33,968 - .16 Somalia...... 67,276 52,257 119,533 28,500 .71 Sri Lanka...... 88,632 121,690 210,322 151,500 1.75 Sudan...... 174,893 237,256 412,149 105,000 2.50 Swaziland...... 7,214 878 8,092 - .04 SyrianArab Republic ...... 41,860 6,181 48,041 - .23 Tanzania...... 221,933 187,032 408,965 130,000 2.60 lFinancialStatements 171 Appendix D InternationalDevelopment Association June30, 1980 Effectivedevelopment credits heldby Association Percent of total Development effectiveand flembersin whose creditsapproved non-effective territoriesdevelopment Disbursed Undisbursed but not yet development credits have beenmade portionI portion2 Total effectiveI credits lThailand...... $ 29,984 $ 92,007 $ 121,991 $ - .59 Togo...... 36,816 22,793 59,609 25,000 .41 l'unisia...... 68,098 1,145 69,243 - .33 l'urkey...... 190,091 795 190,886 - .92 liganda...... 45,995 73,812 119,807 - .58 tipperVolta ...... 72,048 22,744 94,792 35,000 .63 \'iet Nam...... 24,486 35,514 60,000 - .29 WesternSamoa ...... 5,270 7,130 12,400 - .06 YeemenArab Republic ...... 87,911 78,839 166,750 34,500 .97 Yemen,People's Democratic Republicof...... 32,325 20,966 53,291 32,200 .41 i'aire...... 148,413 45,461 193,874 84,500 1.34 7ambia...... 1,190 21,060 22,250 15,000 .18 Sub-totalsmembers ...... $11,024,256 $6,940,508 $17,964,764 $2,732,500 99.89 Regionaldevelopment banks BanqueOuest Africaine de Developpement4...... $ - $ 3,000 $ 3,000 $ - .01 CaribbeanDevelopment Bank 5 ..... - 7,000 7,000 - .03 Sub-totalsregional development banks...... $ - $ 10,000 $ 10,000 $ - .04 Taiwan6 ...... $ 14,476 $ - $ 14,476 $ - .07 l'otals-June30, 1980 ...... $11,038,732 $6,950,508 $17,989,240 $2,732,500 100.00 l'otals-June30, 1979 ...... $ 9,664,951 $5,575,027 $15,239,978 $1,697,300

IThe disbursedportion includes adjustments to reflectthe devaluationsof the UnitedStates dollar in 1972and 1973except in respectof a credit for $9,000,000which is expressedand is repayablein legaltender dollars. 2These amountsdo not include$13,012,000 ($15,232,000-1979) of grant participations.The grant participationsrepresent participations on a grant basistaken in a numberof developmentcredits underthe terms of an aid cooperationagreement between a membercountry and the Association.Of the undisbursedbalance at June30, 1980the Associationhas enteredinto irrevocablecommitments to disburse$4,209,000 ($12,926,000-1979). 3Development credit agreementstotaling Sl,831,600,000 ($1,465,850,000-1979) have been signed, but the creditsdo not becomeeffective and disbursementsthereunder do not start until the borrowerstake certainactionsand furnish certain documents to the Association;and agreements providingfor creditstotaling $900,900,000(S231,450,000-1979) have been approved by the Associationbut havenot beensigned. 4This developmentcredit is for the benefitof Benin,Ivory Coast,Niger, Senegal, Togo and UpperVolta. 5 This developmentcredit is for the benefitof Grenadaand the territoriesof the UnitedKingdom (in the caseof the UnitedKingdom, the territoriesare those of its AssociatedStates and Dependenciesin the CaribbeanRegion). h Representsdevelopment credits made at a time whenthe authoritieson Taiwanrepresented China in the Association.

IHaturityStructure of EffectiveDevelopment Credits

F'eriods June30, 1980 Periods June30,1979

Julyl, 1980toJune301981 ...... $ 33,466 July1,979toJune30,1980 ...... $ 27,066 July1, 1981 to June30, 1982 . . 44,407 July1, 1980 to June30, 1981 ...... 33,469 July1, 1982to June30, 1983 ...... 58,635 July1, 1981to June30, 1982 ...... 44,000 July1, 1983 to June30, 1984 ...... 78,500 July1, 1982to June30, 1983 . . 58,378 July1, 1984 to June30, 1985 ...... 100,771 July1, 1983to June30, 1984 . . 78,298 July1, 1985to June30, 1990 ...... 846,833 July1, 1984to June30, 1989 ...... 714,823 July 1,1990 to June30, 1995 ...... 1,420,832 July1, 1989to June30, 1994 ...... 1,191,973 July1, 1995 to June30, 2000 . . 2,197,020 July1, 1994 to June30, 1999 . . 1,876,122 July1, 2000 to June30, 2005 . . 2,671,391 July1,1999 to June30, 2004 . . 2,301,082 July 1, 2005to June30, 2010 ...... 2,671,811 July1, 2004 to June30, 2009 ...... 2,301,262 July l, 2010to June30, 2015 ...... 2,607,163 Julyl, 2009to June30, 2014 ...... 2,267,055 J uly1, 2015 to June30, 2020 ...... 2,386,331 July1, 2014 to June30 2019...... 2,065,205 July1, 2020 to June30, 2025 ...... 1,876,420 July1, 2019 to June30, 2024 ...... 1,663,318 July1, 2025to June30, 2030 ...... 995,660 July1, 2024 to June30, 2029 ...... 617,927 T-otal...... $17,989,240 Total...... $15,239,978 172 IDA Appendices Statement of Voting Power, and Subscriptions and Supplementary Resources June30, 1980and June30, 1979 Expressedin thousands of unitsof currency-SeeNotes to FinancialStatements, Appendix F Amountsof subscriptions and supplementary resources Amountsof subscriptions underthe and supplementary fourth and Total subscriptions resourcesthrough the fifth re- andsupplementary Voting power third replenishment plenishments resources3 Expressed Expressed Expressed Expressed in in In in current current current special United United United Number Percent drawing States States States Percent Members' of votes of total rights2 dollars dollars dollars of total Part I Members Australia...... 52,652 1.47 SDR 111,980 $ 135,521 $ 234,617 $ 370,138 1.90 Austria...... 21,822 .61 34,560 41,848 105,222 147,070 .75 Belgium...... 42,397 1.18 77,700 93,876 250,246 344,122 1.77 Canada...... 137,025 3.83 304,530 368,224 659,127 1,027,351 5.27 Denmark...... 34,353 .96 70,840 85,889 149,378 235,267 1.21 Finland...... 18,404 .51 22,448 27,165 66,966 94,131 .48 France...... 138,669 3.88 362,032 437,687 746,033 1,183,720 6.08 Germany,Federal Republic of.. 236,831 6.62 476,560 575,868 1,738,173 2,314,041 11.88 Iceland...... 7,802 .22 550 667 1,323 1,990 .01 Ireland...... 10,393 .29 7,030 8,526 18,568 27,094 .14 Italy...... 69,910 1.95 193,240 235,836 124,009 359,845 1.85 Japan.. 201,476 5.63 285,320 344,802 1,579,382 1,924,184 9.88 Kuwait...... 37,613 1.05 22,920 27,731 243,614 271,345 1.39 Luxembourg...... 8,363 .23 2,550 3,079 7,334 10,413 .05 Netherlands...... 70,182 1.96 141,080 170,705 443,892 614,597 3.16 NewZealand ...... 10,413 .29 - - 22,752 22,752 .12 Norway...... 30,464 .85 49,320 59,584 145,730 205,314 1.05 South Africa...... 12,445 .35 20,080 24,270 18,296 42,566 .22 Sweden...... 93,315 2.61 206,225 249,856 473,862 723,718 3.71 UnitedKingdom ...... 263,576 7.37 694,300 839,995 1,543,062 2,383,057 12.23 UnitedStates ...... 769,139 21.49 2,072,290 2,505,633 3,900,000 6,405,633 32.88 Totals...... 2,267,244 63.36 SDR5,155,555 $6,236,762 $12,471,586 $18,708,348 96.03

Part II Members Afghanistan...... 10,084 .28 SDR 1,049 $ 1,377 $ 67 $ 1,444 .01 Algeria...... 18,481 .52 4,186 5,497 216 5,713 .03 Argentina...... 59,655 1.67 19,720 25,910 356 26,266 .13 Bangladesh...... 22,239 .62 5,589 7,339 193 7,532 .04 Benin...... 600 .02 500 656 - 656 4 Bolivia...... 10,230 .29 1,101 1,445 45 1,490 .01 Botswana...... 7,747 .22 166 218 8 226 4 Brazil...... 59,655 1.67 19,720 25,895 190 26,085 .13 Burma...... 12,922 .36 2,099 2,756 92 2,848 .01 Burundi...... 9,407 .26 790 1,037 36 1,073 .01 Cameroon...... 7,771 .22 1,049 1,373 38 1,411 .01 CapeVerde ...... 516 .01 80 105 - 105 4 CentralAfrican Republic...... 6,685 .19 519 682 19 701 4 Chad...... 2,093 .06 519 682 - 682 4 Chile...... 17,113 .48 3,667 4,817 25 4,842 .02 China...... 91,311 2.55 31,436 41,276 1,582 42,858 .22 Colombia...... 17,132 .48 3,717 4,880 160 5,040 .03 Comoros...... 5,774 .16 83 109 3 112 4 Congo,People's Republic of the 6,685 .19 519 682 19 701 4 CostaRica ...... 7,844 .22 208 272 10 282 4 Financial Statements 173 Appendix E InternationalDevelopment Association

Amountsof subscriptions and supplementary resources Amountsof subscriptions underthe andsupplementary fourthand Total subscriptions resourcesthrough the fifth re- andsupplementary Votingpower third replenishment plenishments resources' Expressed Expressed Expressed Expressed in in in in current current current special United United United Number Percent drawing States States States Percent 11embers' of votes of total rights2 dollars dollars dollars of total Part If Members(continued) Cyprus...... 9,407 .26 SDR 790 $ 1,037 $ 42 $ 1,079 .01 DominicanRepublic ...... 8,426 .24 436 569 66 635 4 Ecuador...... 2,200 .06 676 877 - 877 4 Egypt,Arab Republicof ...... 21,403 .60 5,277 6,929 148 7,077 .04 El Salvador...... 6,244 .17 331 435 11 446 4 EquatorialGuinea ...... 1,967 .06 332 436 - 436 4 Ethiopia...... 8,691 .24 539 708 26 734 4 Fiji...... 2,130 .06 581 763 - 763 4 Gabon...... 2,093 .06 519 680 - 680 4 Gambia,The ...... 8,044 .22 277 364 15 379 4 Ghana...... 10,711 .30 2,452 3,219 37 3,256 .02 Greece...... 14,288 .40 2,618 3,220 98 3,318 .02 Grenada...... 7,537 .21 94 123 4 127 4 Guatemala...... 8,417 .24 415 545 21 566 4 Guinea...... 10,084 .28 1,049 1,379 53 1,432 .01 Guinea-Bissau...... 528 .01 140 184 - 184 4 Guyana...... 9,553 .27 842 1,105 38 1,143 .01 Haiti...... 9,407 .26 790 1,037 39 1,076 .01 Honduras...... 8,124 .23 311 409 18 427 4 India...... 119,375 3.34 41,919 53,320 2,171 55,491 .29 Indonesia...... 38,128 1.07 11,531 15,141 385 15,526 .08 Iran...... 15,455 .43 4,717 5,690 154 5,844 .03 Iraq...... 9,407 .26 790 1,037 40 1,077 .01 Israel...... 9,386 .26 1,745 2,113 302 2,415 .01 IvoryCoast ...... 7,771 .22 1,049 1,377 38 1,415 .01 Jordan...... 6,242 .17 311 377 12 389 4 Kampuchea,Democratic ...... 7,826 .22 1,060 1,391 6 1,397 .01 Kenya...... 11,960 .33 1,745 2,284 88 2,372 .01 Korea,Republic of ...... 10,932 .31 1,309 1,719 853 2,572 .01 Lao People'sDem. Rep ...... 8,688 .24 519 682 207 889 4 Lebanon...... 8,562 .24 467 613 19 632 4 Lesotho...... 7,747 .22 166 218 8 226 4 Liberia...... 9,407 .26 790 1,037 40 1,077 .01 Libya...... 7,771 .22 1,049 1,377 37 1,414 .01 Madagascar...... 702 .02 1,010 1,326 - 1,326 .01 Malawi...... 9,407 .26 790 1,037 42 1,079 .01 Malaysia...... 14,288 .40 2,618 3,438 142 3,580 .02 Maldives...... 7,382 .21 31 40 2 42 4 Mali...... 7,479 .21 904 1,187 33 1,220 .01 Mauritania...... 6,685 .19 519 681 17 698 4 Mauritius...... __ ..... 9,702 .27 924 1,209 35 1,244 .01 Mexico...... 9,253 .26 8,740 11,132 132 11,264 .06 Morocco ...... 17,113 .48 3,667 4,815 209 5,024 .03 Nepal...... 8,688 .24 519 682 24 706 4 Nicaragua...... 8,124 .23 311 376 14 390 4 (continued) 174 IDA Appendices

Statement of Voting Power, Appendix E r o. T . ~~~~~~~~~~~~~~~~~InternationalDevelopment and Subscriptions Association and Supplementary Resources(... Ivdd) June30, 1980and June 30, 1979 Expressedin thousandsof units of currency-SeeNotes to FinancialStatements, Appendix F Amountsof subscriptions and supplementary resources Amountsof subscriptions underthe andsupplementary fourthand Totalsubscriptions resourcesthrough the fifth re- andsupplementary Votingpower third replenishment plenishments resources3 Expressed Expressed Expressed Expressed in in in in current current current special United United United Number Percent drawing States States States Percent Membersl of votes of total rights2 dollars dollars dollars of total Part 11 Members (continued) Niger ...... 6,685 .19 SDR 519 $ 680 $ 19 $ 699 4 Nigeria ...... 4,057 .11 3,491 4,532 - 4,532 .02 Oman ...... 6,244 .17 331 433 11 444 4 Pakistan ...... 35,355 .99 10,582 13,895 529 14,424 .08 Panama...... 5,657 .16 21 26 1 27 4 PapuaNew Guinea ...... 9,698 .27 894 1,173 49 1,222 .01 Paraguay ...... 8,124 .23 311 409 15 424 4 Peru ...... 854 .02 1,770 2,323 - 2,323 .01 Philippines ...... 16,583 .46 5,296 6,952 268 7,220 .04 Rwanda ...... 9,407 .26 790 1,037 37 1,074 .01 Sao Tome and Principe...... 514 .01 70 92 - 92 4 Saudi Arabia ...... 46,843 1.31 3,700 4,856 350,000 354,856 1.82 Senegal ...... 11,960 .33 1,745 2,292 95 2,387 .01 SierraLeone ...... 9,407 .26 790 1,033 33 1,066 .01 Somalia...... 7,246 .20 790 1,037 28 1,065 .01 Spain ...... 40,084 1.12 12,590 15,198 31,159 46,357 .24 Sri Lanka...... 15,705 .44 3,148 4,133 66 4,199 .02 Sudan ...... 10,084 .28 1,049 1,373 38 1,411 .01 Swaziland ...... 8,193 .23 332 436 16 452 4 SyrianArab Republic...... 7,651 .21 987 1,296 34 1,330 .01 Tanzania ...... 11,960 .33 1,745 2,292 78 2,370 .01 Thailand ...... 15,705 .44 3,148 4,133 156 4,289 .02 Togo ...... 7,246 .20 790 1,037 29 1,066 .01 Trinidad andTobago ...... 770 .02 1,350 1,772 - 1,772 .01 Tunisia ...... 2,793 .08 1,569 2,061 - 2,061 .01 Turkey ...... 23,450 .66 6,086 7,991 78 8,069 .04 Uganda ...... 11,960 .33 1,745 2,292 88 2,380 .01 UpperVolta ...... 6,685 .19 519 682 19 701 4 Viet Nam ...... 8,889 .25 1,569 2,061 28 2,089 .01 WesternSamoa ...... 7,537 .21 94 123 3 126 4 YemenArab Republic ...... 8,494 .24 446 586 23 609 4 Yemen,People's Dem. Rep. of 10,591 .30 1,226 1,610 62 1,672 .01 Yugoslavia ...... 20,711 .58 8,080 9,766 9,319 19,085 .10 Zaire ...... 12,164 .34 3,138 4,119 20 4,139 .02 Zambia ...... 1,038 .03 2,690 3,531 - 3,531 .02 Totals ...... 1,311,022 36.64 SDR 287,787 $ 372,588 $ 400,986 $ 773,574 3.97 GrandTotals-June 30,1980 .. 3,578,266 100.00SDR 5,443,342 $6,609,350 $12,872,572 $19,481,922 100.00 GrandTotals-June 30,1979.. 3,509,383 SDR5,443,342 $6,601,046 $11,824,498 $18,425,544

SeeAppendix F-Note A, for an explanationof the two categoriesof members. TheAssociation has expressed its subscriptionsand supplementary resources in specialdrawing rights with effectfrom April 1,1978. Includesamounts aggregating $101,403,000 ($2,503,320,000-1979) equivalent in current UnitedStates dollars receivable from members,of which at June30, 1980$79,183,000 ($538,096,000-1979) equivalent was past due and the balance,$22,220,000 ($1,965,224,000-1979) equivalent, was notyet due. 4 Lessthan .005percent. General:Theequivalentof$5,536,000 has been received from UnitedArab Emirates on accountofits subscriptionpending admission to membership. Financial Statements 175

NVotesto Financial Statements Appendix F InternationalDevelopment Association Juine30,1980 and June 30, 1979

Summaryof SignificantAccounting and TheGeneral Counsel has, however, also stated that in the RelatedPolicies exerciseof theirstatutory power under Article X of theAsso- ciation'sArticles, the ExecutiveDirectors could conclude that Translationof Currencies the 1960dollar would be takento mean$1.20635 current The Associationis an internationalorganization which con- dollars,with the consequence that maintenance of value would duictsits operationsin thecurrencies of all of its members bemeasured bythat standard. aild Switzerland.The Association's policy is to translateits assetsand liabilities in currenciesother than UnitedStates Pendingaction on this matterby the Association,the sub- dolarsatate ofexcanearkt t th Unte Sttesdolar scriptionsand supplementary resources through the third dlars endrofeaath quarter.Trxcanslation adhustmetsd relating tola replenishmenthave been expressed in SDRs on the basis that althe end of easu ar resourcestarelacontoy oneSDR equals one 1960 dollar. This basis has not been stdbscriptionsandsupplementary resources are accounted for appliedto developmentcredit repayment obligations however, incl ded inthe t rintin of ntr income.Income and as describedin the followingparagraph. The value of such enpensesar te trasltedmiatian aegeof nth markmetratoes ofd subscriptionsand supplementary resources has been expressed expesesareatanranlatd verge o th maket ate of onthe basisof the SDRin termsof UnitedStates dollars as exchangeineffect during each quarter. computedby the Fund($1.32438 per SDR) on June 30, 1980, Tie subscriptionsand supplementaryresources provided forthe amounts of subscriptionsand supplementary resources throughthe third replenishmentare expressed in termsof undisbursedat June30, 1980;at the dailySDR rate for "UnitedStates dollars of theweight and fineness in effecton amountsdisbursed from the effectivedate of the Second January1, 1960"(1960 dollars) and from 1973 until March 31, Amendmentto June 30, 1980, and at the rateof $1.20635per 1978have been translated by the Association,for purposes of 1960dollar for amountsdisbursed prior to the effectivedate thefinancial statements, into current United States dollars at ofthe SecondAmendment. Expressing the value of certainof the rate of $1.20635per 1960dollar. The supplementary the Association'ssubscriptions and supplementary resources resourcesprovided under the fourth and fifth replenishments in termsof the SDRrather than in termsof the 1960dollar aleexpressed and payable in members'currencies and are (translatedat the rateof $1.20635)does not havea material tr3nslated(1) at marketrates of exchangeat the end of each effecton the financial position or resultsof operationsof the quiarterfor amounts receivable and for amountsreceived and Association.If the value of thesesubscriptions and supple- notyet disbursed, and (2) at marketrates of exchangeonthe mentaryresources were expressed in termsof $1.20635the datesof disbursementin respect of thoseamounts which have amountof $19,459,702,000($16,460,320,000-1979) shown in beendisbursed or convertedinto another currency. The Asso- theStatementofConditionwouldhavedecreased by$42,712,000 ciation'sdevelopment credits are denominatedin current to $19,416,990,000($33,008,000 to$16,427,312,000-1979). UniitedStates dollars. However, under the Association's Gen- Pendingclarification of theeffect of the SecondAmendment eralConditions Applicable to Development Credit Agreements, on the paymentobligations under its developmentcredit theprincipal amounts of the creditsdisbursed are repayable agreements,the Association has continued to base these upon inamounts equivalent, atthe dates of repayment,to the value thepar value ($1.20635 per 1960 dollar) in effectimmediately ofthe currencies disbursed in terms of 1960dollars. priorto effectivenessofthe Second Amendment. If the matter OnApril 30, 1976, the Board of Governorsof the International hadbeen resolved during the period ended June 30, 1980, MonetaryFund (the Fund) approved proposed amendments to andthe Association had expressed its developmentcredits in the Fund'sArticles of Agreement(the Second Amendment) termsofthe SDRat.June30,1980,theaamountof $17,989,240,000 whichentered into force on April1, 1978.Under the Second ($15,239,978,000-1979)shownin the Statementof Condition Amendment,currencies no longer have par values, gold is wouldhave increased by $889,793,000($599,452,000-1979) atolishedas a commondenominator of the monetarysystem asof June30, 1980 representing the cumulative effect of the andall calculationsforthe purposes of the Fund's Articles are changesince April 1, 1978.This would have resulted in net madeon the basis of thespecial drawing right (SDR). incomefor the periodended June 30, 1980 of $837,250,000 ($553,557,000-1979)rather than a net lossof $52,543,000 Asa resultof the SecondAmendment and the simultaneous ($45,895,000-1979). reDealof Section 2of the ParValue Modification Act (31 U.S.C. 449),the provision of UnitedStates law defining the par value Investments ofthe UnitedStates dollar in termsof theSDR and gold, the Investmentsecurities are recorded at costor amortizedcost. prm-existingbasis for translatingthe term "UnitedStates Gainsor losseson salesof investments,measured by the dollarof the weight and fineness ineffect on January 1,1960" differencebetween average cost and proceeds of sales,are inl currentUnited States dollars or intoany other currency, recordedas anelement of income from investments. nolonger exists. T[reGeneral Counsel ofthe Associationhas rendered a legal DevelopmentCredits opinionconcluding insubstance that upon the entry into force All of the Association'sdevelopment credits are madeto of the SecondAmendment references in the Association's membergovernments orto thegovernment of a territoryof a Articlesof Agreementto the 1960dollar should be readas member(except for twodevelopment credits which have been relerringtothe SDR, as determined from time to timeby the madetoregional developmentbanksforthe benefitof members Fundand the mutualobligations of eachmember and the orterritories of membersof theAssociation). The Association Associationwith respect to maintenanceof value of certain hasnot suffered any losses on development credit receivables currencyholdings will bemeasured by thevalue of the cur- andno losses are anticipated. However, should such losses rencyin questionin termsof the SDRat anygiven time. It arisethey wouldbe included in the determinationof net wouldbe consistent with this opinion also to substitutethe income. SDIRfor the 1960dollar as the measureof the development creditrepayment obligation but this would require approval of AdministrativeExpenses the ExecutiveDirectors and would involve other changes in Administrativeexpenses of the Associationare paid by the thedevelopment credit agreements. IntemationalBank for Reconstructionand Development(the 176 IDA Appendices

Notes to Financial Statements (ontinued)

June30, 1980and June 30, 1979

Bank).The Association reimbursesthe Bank forsuch expenses The provisionsof ArticleIV, Section2 haveby agreement been by paymentof a managementfee representingits shareof the extendedto coveradditional subscriptions and supplementary administrativeexpenses incurred by the Bank. resourcesof the Associationthrough the third replenishment Note A-Restricted Currencies but are notapplicable to thoseof the fourth andfifth replen- Nthem -embersipcfthedAssoeciatoes diienotoct- ishments.On June 19, 1972, the ExecutiveDirectors decided The membershipof the Associationis dividedinto two cate- that for all membersthat establishedcentral rates for their gories:(1) Part I members,which pay all subscriptionsand respectivecurrencies, pending establishment of newpar values supplementaryresources provided to the Associationin con- fortheir currencies, maintenance ofvalue obligations besettled vertiblecurrencies which may be freely used or exchanged by onthe basis of thosecentral rates. It wasfurther decided that the Associationin its operations;(2) Part II members,which with respectto any membercurrency functioning under a paytenpercentof thei rinitial subscriptionsin freely convertible systemunder which the marketrate wasnot confined within currenciesand the remainingninety percentof their initial announcedintervention margins, maintenance of valueobliga- subscriptionsand all additionalsubscriptions and any supple- tions would be determinedon the basisof marketrates in mentaryresources provided to the Associationin their own effectonthe respective datesof disbursementof such currency, currencies.The Articles of Agreementotthe Associationand butonly for the amounts disbursed. subsequentreplenishment agreements provide that the currencyof any Part II memberpaid in by it maynot be used Prior to April 1, 1978,where market rates of exchangewere bythe Associationfor projectsfinanced by the Associationand not relatedto par valuesor centralrates as in the casesof a locatedoutside the territories of the memberexcept by agree- majorityof the members,and there were differences between mentbetween the memberand the Association.The amounts marketrates of exchangeand the rates at whichundisbursed of $55,576,000($55,713,000-1979) under the headingDue subscriptionsand supplementaryresources of members from Banks,$162,860,000 ($154,790,000-1979) included under throughthe third replenishmentof the Association'sresources the headingReceivable on Accountof Subscriptionsand Sup- hadbeen paid or werepayable, such differences were shown as plementaryResources and $72,504,000($72,759,000-1979) TranslationAdjustments on Subscriptionsand Supplementary includedin NotionalAmounts Required to MaintainValue of Resourcesunder the headingOther Assets.The amounts CurrencyHoldings under the headingsOther Assets and Other $93,361,000($94,300,000-1979) established at that dateand Liabilitiesrespectively, were subject to suchrestrictions. accordinglyat June30, 1980represented notional receivables $108,395,000($99,094,000-1979) and payables $15,034,000 Note B-Investments ($4,794,000-1979).Maintenance ofvalue obligationsin respect The market valueof investmentsecurities was $95,618,000 of suchundisbursed amounts are determinedupon their dis- ($159,564,000-1979)compared with a cost or amortized bursement.In accordancewith the legalopinion of the Asso- cost of $96,116,000($160,685,000-1979) and face valueof ciation'sGeneral Counsel referred to above,maintenance of $98,067,000($161,682,000-1979), including investments not value pursuantto Article IV, Section2 of the Articlesof traded in the market which were valued at their cost of Agreementisbeingdeterminedprovisionallyonthebasisofthe $39,497,000($34,329,000-1979). Investments include secur- SDR,and is treatedin the financialstatements on that basis. ities purchasedunder agreementsto resell amountingto SincetheAssociationisstillconsideringtheimplicationsofthe $5,682,000($6,921,000-1979). SecondAmendment, and in view of the questionsreferred to Note C-Maintenance of Value above,the timing of any establishmentand settlement of these Article IV, Secton2 of theAssociation's Articles of Agreement notionalmaintenance of valueitems is uncertain.Accordingly, providesfor the maintenanceof the value,as of the time of they are includedin OtherAssets, and Liabilites as notional subscription,of the Associabon'scurrency holdings or demand maintenanceof valueobligations. obligationssubstituted therefor representingninety percent Note D-Borrowings from Swiss Confederation of eachmember's initial subscripton,only so longas and to The Associationhas entered into agreementsto borrowa total the extentthat suchcurrency has notbeen initially disbursed of SwF 182 million (US equivalent$112,450,000-1980; or exchangedfor the currency of anothermember. This Section $109,428,000-1979)from the SwissConfederation. The first requires:(1) the memberto makeadditonal payments to the loanfor SwF 52 millionwas madein fiscalyear 1967 and the Associationin the eventthat the par valueof its currencyis secondloan for SwF 130million was made in fiscalyear 1973. reducedor the foreignexchange value of its currencyhas, in The balanceof theseloans outstanding at June30, 1980was the opinionof the Association,depreciated to a significant SwF 181,480,000(US equivalent$112,129,000). The Associa- extent in its territoriesand (2) the Associationto reimburse tion and the Swiss Confederationhave signed agreements the memberin the eventthat the par valueof its currencyis whichprovide for theconversion of theseloans into grantcon- increasedor theforeign exchange value of its currencyhas, in tributions,subject to ratificationby the SwissConfederation the opinionof the Association,appreciated to a significant whichwill requirelegislative approval. It is not expectedthat extentin its territories. theseprocedures can be completed before the latter part of 1980. Note E-Subscriptions and Supplementary Resources Subscriptionsand supplementaryresources have beentranslated as set forth under the Summaryof SignificantAccounting and RelatedPolicies. At June30, 1980and 1979these were as follows: 1980 1979 Expressedin UnitedStates Dollars Initial subscriptionsand first three replenishments: (in thousands) Subscriptions(SDR 1,065,338-1980, SDR 1,065,338-1979)...... $ 1,310,407 $ 1,303,262 Supplementaryresources (SDR 4,378,004-1980, SDR4,378,004-1979) ...... 5,298,943 5,297,784 $ 6,609,350 6,601,046 Fourthand fifth replenishments: Subscriptions...... $ 50,559 48,957 Supplementaryresources ...... 12,822,013 11,775,541 $12,872,572 11,824,498 Less-Portion for whichpayment is not yet due...... 22,220 1,965,224 12,850,352 9,859,274 Totals .. $19,459,702 $16,460,320 iFinancialStatements 177 Appendix F InternationalDevelopment Association

The aggregateamounts not yet due, will be dueas follows: June30, 1980 June 30, 1979 Amounts Fiscal years (in thousands) 1980...... $ - $ 1,949,301 1981...... 22,220 15,923 Totals...... $ 22,220 $ 1,965,224

Note F-Transfers from International Bank amountedto $57,275,000.It is not anticipatedthat these for Reconstruction and Development delayswill resultin any lossto the Association. The InternationalBank for Reconstructionand Development Note I-Sixth Replenishment of the Ias authorizedtransfers by wayof grantsto the Association Association's Resources tbtaling$1,425,000,000 ($1,325,000,000-1979) from netincome OnMarch 26,1980, the Board of Governorsadopted aresolution cf the Bankfor the fiscalyears ended June 30, 1964 through OMauthorizingAs80the oation tovaceptoradditional reoresfomuio June30,1979. Of this amount,$61,325,000 ($47,325,000-1979) membercountries, as a ixnthorepldenishmntionalresourcesifrom rmaybe usedby the Associationor had beendisbursed for resources.Under the resolutionthe Associationwould be au- fransfrreearc agicutura an forthecontol f Onho- thorizedto accept an aggregate of$12,000,000,000 equivalent, cerciasis.At June30, 1979,$25,000 previously allocated for computedon the basisof representativerates of exchangeand suchgrants reverted tothe Associationforitsgeneral purposes. the SDRvalue on October5, 1979and payablein freelycon- vertibleor otherwiseusable currency. The resolutionprovides Note G-Translation Adjustments thatthese payments would be madein threeequal instalments In accordancewith the policiesdiscussed in the Summaryof beginningon November8, 1980(unless that dateis postponed 'iignificant Accountingand RelatedPolicies the Association as providedin theresolution because sufficient notifications as Ias recordedtranslation adjustments for the fiscalyear ended describedbelow have not beenreceived). The resolutionfur- June30, 1980of $2,693,000($8,025,000-1979) representing ther providesthat the membershave certain options as to the ret chargesof $2,655,000($7,294,000-1979) as a result of amountand timing of payments.These resources would be currencydepreciations and appreciations [including $3,013,000 dividedinto amountsfor subscriptionscarrying voting rights ($11,288,000-1979)of chargeson the Swiss Confederation andcontributions not carrying voting rights. torrowings]and chargesof $38,000($731,000-1979) repre- In connectionwith the replenishmentand in accordancewith sentingthe effectof the valuationchange to the SDRon that pastpractice, arrangements have been made to permit Part II portionof the Association'ssubscriptions and supplementary membersto maintaintheir relative voting power and for resourcespaid in UnitedStates dollars. that purposethey havebeen authorizedto make subscrip- Sincethe valueof the SDR in terms of currentdollars may tions carryingvoting rights in the aggregateof $6,289,000 varyfrom dayto day,the portion of the Association'ssubscrip- equivalentpayable in the respectivecurrencies of the sub- tons and supplementaryresources paid in dollars will be scribingmembers. subjectto furtheradjustment at the endof eachquarter. Noneof the above-mentionedsubscriptions and contributions wouldbecome payable unless members, including at least 12 Part I members,whose subscriptions and contributions aggre- Note H-Net Loss gate not less than the equivalent,computed on the basis The Associationpays a managementfee to the Bankin respect describedabove, of $9,600,000,000shall each have given the of administrativeexpenditures incurred for projectsduring Association,on or beforeSeptember 30, 1980,or such later tneir preparationand implementation.The major portionof dateas the ExecutiveDirectors may determine, formal notifi- such expendituresis incurredbefore substantial amounts of cationthat theywill makethe totalsubscription and the total tie creditswhich finance the projectsare disbursed.Service contributionauthorized for suchmembers in accordancewith chargeson developmentcredits, which are levied only on the terms of the resolution.These notifications may provide amountsdisbursed and outstanding, are estimated to be more thatthe paymentof a partof thesubscription and contribution tian sufficientto coverthe costsincurred over the livesof the of any memberis subjectto obtainingthe necessaryappro- projectsthey finance.Because administrative expenses are priations.Countries whose contributions are soqualified would ilcurred considerablyin advanceof receiptof incomefrom notify the Associationfrom time to time whenappropriate developmentcredits the Association incurs a temporaryincome legislativeaction has beentaken to permitpayment of all or deficit with respectto eachsuch credit. While the present a part of their qualifiedcontributions. fiscalyear 1980n as estmateedbymentArsedoits approved during The resolutionfurther providesthat, for purposesof credit fiscl yar980 bytheAssciaton,exceds~hasestiate 9 commitmentsbythe Association, the subscriptions and contri- nianagementfee for that year,the amountof the incomedeficit butions authorizedthereunder shall be divided into three wfhichmay be incurred in anyyear will beinfluenced by a numberof factorsincluding the scaleof lendingactivities of successivetranches of at least 29%, at least33%. and 38% thieAssociation,theamount of creditson which service charges (or the remainingbalance) of the total. If andas longas arebeing earned and the incomefrom other investments the unqualifiedcontribution commitments have not been received Associationmay have, from the UnitedStates for the respectiveminimum amount of any said tranchesof its subscriptionand contribution,the At June30, 1980, principal instalments of $84,000and service amountof suchtranche of all subscriptionsand contributions chargesof $296,000payable to the Associationon develop- whichthe Associationmay use for makingnew unqualified mentcreditswere overdue by more than 60 days.Theprincipal credit commitmentswill be reducedin proportionto such disbursedand outstandingon these developmentcredits shortfallin unqualifiedcontribution commitments. 178 IDA Appendices Report of Financial Statements Independent Accountants Covered by the Foregoing Report 1801K Street, N.W. WASHINGTON,D.C. 20006 JULY30, 1980

To INTERNATIONALDEVELOPMENT ASSOCIATION WASHINGTON,D.C.

We haveexamined the accompanyingfinancial statements Statementof Condition...... AppendixA (AppendicesA through F) of InternationalDevelopment Associationfor the yearsended June 30, 1980and 1979.Our Statementof Income .. AppendixB examinationsof thesestatements were madein accordance Statementof Transfers with generallyaccepted auditing standards and accordingly from InternationalBank for includedsuch tests of the accountingrecords and such other Reconstructionand Development...... AppendixB auditing proceduresas we considerednecessary in the circumstances. Statementof Changesin Resources Availablefor Commitment . . AppendixC As describedin the Summaryof SignificantAccounting and RelatedPolicies in the notesto these financialstatements SummaryStatement of managementbelieves that it would be consistentwith Gen- DevelopmentCredits AppendixD eral Counsel'sopinionwith respecttothevaluation of certain Statementof Voting Power, of the Association'ssubscriptions and supplementaryre- and Subscriptionsand sources,to also substitutethe specialdrawing right (SDR) SupplementaryResources ..... AppendixE for the 1960dollar asthe measureof the developmentcredit repaymentobligations of the Association'sborrowers. How- Notesto FinancialStatements ..... AppendixF ever,this would require approvalof the ExecutiveDirectors and involveother changes in the developmentcredit agreements.Accordingly, until these events haveoccurred, the repaymentobligations will not be revalued. In our opinion, subjectto the effects, if any, which may result uponthe resolutionof the matter referredto in the precedingparagraph, the financialstatements examined by us presentfairly, in terms of United Statescurrency, the financial positionof InternationalDevelopment Association as of June30, 1980and 1979,the resultsof its operations and changesin resourcesavailable for commitmentfor the years then ended, in conformity with generallyaccepted accountingprinciples consistently applied.

PRICEWATERHOUSE & CO. 179

]Bank/IDA Appendices

Page 1. Bankand IDA Cumulative Lending Operations, by Major Purposeand Region, June 30, 1980...... I...... 180 2 Bankand IDA Cumulative Lending Operations, by Country, June30, 1980 ...... 182 3 Statementof LoansApproved during Fiscal Year 1980 ...... 185 41Statement of DevelopmentCredits Approved during Fiscal Year1980 ...... 190 5 AdministrativeBudgets of the Bankand IDA ...... 194 6 Governorsand Alternates of the Bankand IDA ...... 195 7 ExecutiveDirectors and Alternates of the Bankand IDA ...... 197 sEOfficers and Department Directors of the Bankand IDA...... 198 E World Bank Offices ...... 199 180 Bank/lIDA Appendices Bank and IDA Cumulative Lending Operations, by Major Purpose and Region, June 30, 1980 Expressedin UnitedStates dollars (in millions)

Bankloans to borrowers,by region Europe, East Middle Latin Asia East,and America Eastern Western and South North andthe Purpose2 Africa Africa Pacific Asia Africa Caribbean Total AGRICULTUREAND RURAL DEVELOPMENT Agriculturalcredit ...... $ 5.0 $ 3.5 $ 131.5 $ - $ 983.5 $ 345.4 $ 1,468.9 Agriculturesector loan ...... 5.6 9.0 4.3 26.3 2.3 22.7 70.2 Areadevelopment ...... 144.5 305.9 657.0 197.0 294.0 810.6 2,409.0 Crop processing,storage ...... - - 95.8 - 365.9 292.8 754.5 Fisheries...... - - 45.8 14.0 48.0 16.2 124.0 Forestry ...... 48.5 49.0 8.5 - 186.0 22.0 314.0 Irrigation,flood control ...... 78.2 32.0 1,968.5 149.0 1,272.5 876.3 4,376.5 Livestock...... 11.8 32.6 48.0 10.0 197.0 927.0 1,226.4 Perennialcrops ...... 57.4 354.5 348.5 - 68.0 65.0 893.4 Researchand extension ...... - - 229.0 25.0 12.7 199.0 465.7 Subtotal ...... 351.0 786.5 3,536.9 421.3 3,429.9 3,577.0 12,102.6 DEVELOPMENTFINANCE COMPANIES ...... 211.0 113.2 1,351.2 926.2 1,997.0 1,382.5 5,981.1 EDUCATION...... 137.1 155.6 584.2 - 825.4 396.1 2,098.4 ENERGY Oil,gas, and coal ...... 20.0 - 183.9 283.7 304.9 84.3 876.8 Power...... 737.0 438.0 2,634.5 522.7 2,309.2 5,170.5 11,811.9 Subtotal...... 757.0 438.0 2,818.4 806.4 2,614.1 5,254.8 12,688.7 INDUSTRY Engineering...... - - 10.0 - 11.0 - 21.0 Fertilizerand chemicals ...... - - 185.0 481.0 218.3 333.5 1,217.8 Industrysector loan ...... - 0.6 272.4 - 646.4 97.5 1,016.9 Iron and steel ...... - - - 189.0 283.5 662.0 1,134.5 Mining,other extractive ...... 137.5 191.0 - - 158.3 228.0 714.8 Pulpand paper...... 30.0 - - 4.2 204.0 20.0 258.2 Textiles...... 63.0 - - - 254.0 - 317.0 Subtotal...... _...... 230.5 191.6 467.4 674.2 1,775.5 1,341.0 4,680.2

NONPROJECT...... 160.0 80.0 483.5 - 1,444.63 348.0 2,516.1 POPULATION,HEALTH, AND NUTRITION.. - - 149.5 - 16.5 60.8 226.8 SMALL-SCALEENTERPRISES ...... - 78.2 64.6 - 176.0 361.5 680.3 TECHNICALASSISTANCE...... - - 13.0 - 4.3 24.3 41.6 TELECOMMUNICATIONS...... 121.6 54.3 231.3 227.5 235.8 393.3 1,263.8 TOURISM ...... 17.0 37.5 25.0 - 96.6 187.5 363.6 TRANSPORTATION Airlinesand airports ...... 49.0 10.0 9.2 5.6 7.0 160.5 241.3 Highways...... 328.7 521.7 1,711.1 39.9 1,617.6 2,443.1 6,662.1 Pipelines ...... - - - 37.0 57.5 23.3 117.8 Portsand waterways ...... 84.9 172.3 478.3 109.8 1,006.3 254.6 2,106.2 Railways ...... 392.2 164.5 748.4 555.1 708.5 1,111.5 3,680.2 Transportationsector loan ...... 28.0 25.0 - - 12.0 30.0 95.0 Subtotal...... 882.8 893.5 2,947.0 747.4 3,408.9 4,023.0 12,902.6 URBANIZATION...... 61.0 61.8 443.1 25.0 90.0 456.5 1,137.4 WATERSUPPLY AND SEWERAGE ...... 127.0 185.5 444.1 - 775.4 1,126.2 2,658.2 TOTAL...... $3,056.0$3,075.7 $13,559.2 $3,828.0 $16,890.0 $18,932.5 $59,341.4

Exceptfor the total shownin footnote4, noaccount is takenof cancellationsand refundingssubsequent to original commitment.Amounts of cancellationsand refundingsare shown by countryand purposein the Statementsof Loansand of DevelopmentCredits, which areavailable on request.Bank loans of $550million to IFCare excluded. 2 Operationshave been classified by the majorpurposes they finance. Many projects include activity in morethan onesector or subsector. Includes$497 million in Europeanreconstruction loans made before 1952. Cancellations,terminations, and refundings amount to $1,606.0million forthe Bank and $335.2million for IDA,totaling $1,941.2million. This figureincludesS46.1 million of loansand $175.8million of creditsmade to Pakistanin earlieryears for developmentprojects in its formereastern wing,now Bangladesh.The loans and credits were reactivated, in revisedform, as commitmentsto Bangladesh. Bank/lIDA Appendices 181 Appendix 1

IDA creditsto borrowers,by region Europe, East Middle Latin Asia East,and America Eastern Western and South North andthe Total Africa Africa Pacific Asia Africa Caribbean Total Bankand IDA

$ 44.6 $ 26.4 $ 53.7 $ 1,125.1 $ 96.2 $ 23.5 $ 1,369.5 $ 2,838.4 13.0 4.5 7.5 150.0 - - 175.0 245.2 421.7 258.7 190.3 467.5 48.7 32.0 1,418.9 3,827.9 132.3 - - 309.7 63.0 10.0 515.0 1,269.5 25.0 1.3 10.0 50.7 34.1 - 121.1 245.1 42.1 29.5 - 152.7 - - 224.3 538.3 211.9 115.9 226.2 1,689.0 315.7 18.5 2,577.2 6,953.7 158.9 82.5 10.6 90.6 49.5 67.5 459.6 1,686.0 128.8 131.5 166.8 97.0 15.0 - 539.1 1,432.5 25.5 - 72.0 199.5 - - 297.0 762.7 1,203.8 650.3 737.1 4,331.8 622.2 151.5 7,696.7 19,799.3 114.1 34.0 25.0 156.5 81.0 13.2 423.8 6,404.9 314.0 182.5 179.4 153.7 182.8 48.6 1,061.0 3,159.4 48.5 5.0 - 30.0 59.0 16.0 158.5 1,035.3 151.8 38.7 111.0 1,858.3 222.9 102.8 2,485.5 14,297.4 200.3 43.7 111.0 1,888.3 281.9 118.8 2,644.0 15,332.7

------21.0 - - 35.0 480.0 21.4 - 536.4 1,754.2 - - - - 18.7 - 18.7 1,035.6 ------1,134.5 2.5 - - 16.0 - 7.5 26.0 740.8 32.0 - - - - - 32.0 290.2 20.0 - - - 7.0 - 27.0 344.0 54.5 - 35.0 496.0 47.1 7.5 640.1 5,320.3

207.5 - - 2,181.6 35.0 9.0 2,433.1 4,949.2 12.0 - 86.3 146.2 39.6 - 284.1 510.9 14.0 26.0 56.5 52.5 2.3 - 151.3 831.6 26.5 26.4 25.0 29.5 - - 107.4 149.0 37.4 14.1 12.8 455.2 83.0 - 602.5 1,866.3 14.0 4.0 16.0 4.2 48.5 - 86.7 450.3

9.0 5.0 - - 2.5 - 16.5 257.8 620.1 457.2 120.4 254.4 115.6 128.3 1,696.0 8,358.1 ------117.8 93.2 43.3 19.9 183.3 9.2 5.0 353.9 2,460.1 86.0 100.6 40.0 784.2 38.5 8.0 1,057.3 4,737.5 15.0 - - - - - 15.0 110.0 823.3 606.1 180.3 1,221.9 165.8 141.3 3,138.7 16,041.3 77.5 28.2 - 202.0 23.3 54.0 385.0 1,522.4 65.1 36.9 26.4 636.4 132.0 18.6 915.4 3,573.6 $3,164.0 $1,652.2 $1,490.8 $11,955.8 $1,744.5 $562.5 $20,569.8 $79,911.24 182 Bank/liDA Appendices Bank and IDA Cumulative Lending Operations, by Country, June 30, 1980 Expressedin UnitedStates dollars (in millions) BankLoans IDA Credits Total

Country Number1 Amount NumberI Amount NumberI Amount Afghanistan ...... - $ - 20 $ 230.1 20 $ 230.1 Algeria ...... 24 1,091.0 - - 24 1,091.0 Argentina ...... 17 1,350.3 - - 17 1,350.3 Australia...... 7 417.7 - - 7 417.7 Austria ...... 9 106.4 - - 9 106.4 Bahamas 1...... 10.0 - - 1 10.0 Bangladesh2 ...... 1 46.1 64 1,454.2 65 1,500.3 Barbados ...... 3 27.0 - - 3 27.0 Belgium ...... 4 76.0 - - 4 76.0 Benin...... - - 10 86.1 10 86.1 Bolivia...... 14 299.3 14 104.8 28 404.1 Botswana...... 10 106.7 6 15.8 16 122.5 Brazil...... 96 5,313.7 - - 96 5,313.7 Burma...... 3 33.4 15 363.0 18 396.4 Burundi ...... 1 4.8 14 85.2 15 90.0 Cameroon ...... 22 310.3 14 230.5 36 540.8 CaribbeanRegion 3 ...... I ...... 2 43.0 - 7.0 2 50.0 CentralAfrican Republic...... - - 5 30.4 5 30.4 Chad4 ...... 13 78.5 13 78.5 Chile...... 24 399.2 - 19.0 24 418.2 Colombia ...... 87 2,761.4 - 19.5 87 2,780.9 Comoros...... - 2 10.2 2 10.2 Congo,People's Republic of the...... 3 76.0 7 57.6 10 133.6 CostaRica ...... 25 353.2 - 5.5 25 358.7 Cyprus...... 17 143.6 - - 17 143.6 Denmark...... 3 85.0 - - 3 85.0 DominicanRepublic ...... 11 236.0 3 22.0 14 258.0 EastAfrican Community5...... 10 244.8 - - 10 244.8 Ecuador...... 26 405.1 5 36.9 31 442.0 Egypt,Arab Republic of...... 24 1,125.0 21 783.6 45 1,908.6 EquatorialGuinea ...... - - 1 2.0 1 2.0 ElSalvador ...... 18 216.1 2 25.6 20 241.7 Ethiopia...... 12 108.6 24 368.1 36 476.7 Fiji ...... 7 65.7 - - 7 65.7 Finland...... 18 316.8 - - 18 316.8 France ...... 1 250.0 - - 1 250.0 Gabon6...... 6 69.3 - - 6 69.3 Gambia,The ...... - - 8 27.4 8 27.4 7 Ghana...... 9 207.0 14 179.0 23 386.0 Greece...... 17 490.8 - - 17 490.8 Guatemala ...... 12 277.5 - - 12 277.5 Guinea ...... 3 75.2 7 66.0 10 141.2 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...... 23 381.0 5 83.2 28 464.2 Iceland ...... 10 47.1 - - 10 47.1 India...... 59 2,770.6 126 8,285.2 185 11,055.8 Indonesia...... 50 3,056.0 46 931.8 96 3,987.8 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 IvoryCoast 7.8 ...... 32 548.6 1 7.5 33 556.1 Bankf/lDA Appendices 183

Appendix 2

Bank Loans IDA Credits Total Country Number I Amount Number Amount Number ' Amount Jamaica ...... 23 $ 299.5 - $ - 23 $ 299.5 Japan ...... 31 862.9 - - 31 862.9 Jordan ...... 4 79.0 15 85.3 19 164.3 kenya...... 35 789.3 24 408.3 59 1,197.6 Korea,Republic of ...... 51 2,948.5 6 110.8 57 3,059.3 Lao People'sDemocratic Republic ...... - - 3 32.0 3 32.0 Lebanon...... 4 116.6 - - 4 116.6 Lesotho...... - - 11 60.2 11 60.2 Liberia-- ...... 19 131.0 6 44.0 25 175.0 Luxembourg...... 1 12.0 - - 1 12.0 Madagascar...... 5 32.9 16 255.2 21 288.1 Malawi...... 3 29.2 20 183.8 23 213.0 Malaysia ...... 47 1,132.6 - - 47 1,132.6 Maldives...... - - 1 3.2 1 3.2 Mali4, 8. - 1.9 18 173.2 18 175.1 Malta...... 1 7.5 - - 1 7.5 MauritaniaI ...... 2 126.0 10 46.5 12 172.5 Mlauritius ...... 10 80.3 4 20.2 14 100.5 Mexico...... 62 4,113.6 - - 62 4,113.6 Mlorocco...... 42 1,437.3 3 50.8 45 1,488.1

Nepal...... - 21 235.7 21 235.7 Netherlands...... 8 244.0 - - 8 244.0 NewZealand ...... 6 126.8 - - 6 126.8 Nicaragua...... 24 183.9 3 55.0 27 238.9 Niger ...... - 4 15 136.9 15 136.9 Nigeria...... 41 1,380.7 2 35.5 43 1,416.2 Norway ...... 6 145.0 - - 6 145.0 (Oman...... 5 47.0 - - 5 47.0 F'akistan9 ...... 38 884.0 46 1,244.9 84 2,128.9 F'anama...... 20 316.2 - - 20 316.2 F'apuaNew Guinea ...... 8 88.0 7 81.2 15 169.2 Flaraguay...... 18 229.9 6 45.5 24 275.4 Fleru...... 39 808.0 - - 39 808.0 F'hilippines ...... 70 2,389.9 3 122.2 73 2,512.1 FPortugal...... 17 575.5 - - 17 575.5 Romania...... 26 1,502.8 - - 26 1,502.8 Rwanda...... - - 13 109.7 13 109.7 Senegal4 8 ...... 16 109.1 21 187.7 37 296.8 SierraLeone ...... 4 18.7 5 33.8 9 52.5 Singapore...... 14 181.3 Somalia...... - - 21 147.2 21 147.2 SouthAfrica ...... 111.8 11 241.8 Spain ...... 12 478.7 - - 12 478.7 Sri Lanka...... 8 93.9 23 369.6 31 463.5 Sudan...... 8 166.0 22 522.5 30 688.5 Swaziland...... 9 51.6 2 7.8 11 59.4 SyrianArab Republic...... 12 468.1 3 47.3 15 515.4 lTanzania...... 18 318.2 40 538.7 58 856.9 Thafland...... 59 1,960.4 6 125.1 65 2,085.5 logo 7...... 1 20;0 10 84.9 11 104.9 Trinidadand Tobago...... 13 124.8 - - 13 124.8 lTunisia...... 40 749.8 5 74.6 45 824.4 lTurkey...... 48 2,407.4 10 178.5 58 2,585.9 Llganda...... 1 8.4 8 116.8 9 125.2 lipperVolta '8...... - 1.9 17 132.7 17 134.6

(continued) 184 Bank/IDA Appendices

Bank and IDA Cumulative Lending Appendix 2 Operations, by Country, June 30, 1980 Expressedin UnitedStates dollars (in millions) BankLoans IDA Credits Total

Country Number1 Amount NumberI Amount Number' Amount Uruguay ...... 18 $ 341.4 - $ - 18 $ 341.4 Venezuela ...... 13 383.3 - - 13 383.3 Viet Nam ...... - - 1 60.0 1 60.0 WesternAfrica Region10 ...... _... - 1 3.0 1 3.0 WesternSamoa ...... - - 2 12.4 2 12.4 YemenArab Republic...... - - 22 208.3 22 208.3 Yemen,People's Democratic Republic of...... - - 14 86.0 14 86.0 Yugoslavia...... 59 2,684.1 - - 59 2,684.1 Zaire...... 6 220.0 20 277.0 26 497.0 Zambia11...... 23 566.4 2 37.3 25 603.7 Zimbabwe11 ...... 5.. 87.0 - - 5 87.0 Taiwan'2...... 14 329.4 4 15.3 18 344.7 TOTAL...... 1,875 $59,341.4 973 $20,569.8 2,848 $79,911.2

Joint Bank/lDAoperations are counted only once,as Bank operations.When more than oneloan is madetor a singleproject, the operationis countedonly once. 2 Includes$46.1 million in Bankamount and oneBank loan,as well as $175.8million in IDA amountand 19 IDA credits,which replacecommit- mentsoriginally made to Pakistan. 3 Theloans were made for the benefitaf the followingBank members-Bahamas, Barbados, Greaada, Guyana, and Jamaica-and for the benefit of the territoriesof the UnitedKingdom's Associated States and Dependenciesin the CaribbeanRegion. The memberswill be severallyliable as guarantorsto the extentof subloansmade in their territories. * OneIDA project,in fiscalyear 1974, for DroughtRelief, is sharedby the followingcountries:Chad-$2 million; Mali-$2.5 million; Mauritania- $2.5million; Niger-$2 million; Senegal-$3million; UpperVolta-$2 million. Theamounts are included in eachcountry's total, but the operation is countedonly once,against Senegal. 5 Jointlyguaranteed by Kenya,Tanzania, and Uganda. OneBank loan of $35million, in fiscalyear 1959,is jointly guaranteedby People'sRepublic of the Congo,France, and Gabon. OneBank projectof $60million, in fiscal year 1976,has been assigned in equalshares to Ghana,Ivory Coast,and Togo, but the operationis countedonly once,against Toga. Of the $60million, anamount of $49.5million was lent to Cimentsde l'Afrique de l'Ouest(CIMAO)and isjointly guaranteedby the threecountries. 3 OneBank loan of $7.5 million,infiscal year 1954,is sharedin amnountsof $1.875million each by IvoryCoast, Mali,Senegal,anrd Upper Volta, but iscounted as one operation, against Ivory Coast. One Bank loan of $23 million, in fiscal year 1978,is guaranteedby IvoryCoast and Upper Volta, but is countedas one operation,against Ivory Coast. oExcludes$46.1 million in Bankamount and one Bankloan, as well as $175.8million in IDA amountand 19 IDA credits,which werereplaced by commitmentsmade to Bangladesh. ' Thecredit is to the BanqueOuest Africaine de Developpement(BOAD), the regionaldevelopment bank of the UnionMotnetaire Ouest Africaine (UMOA),which is a monetaryunion of six francophonestates-Benin, Ivory Coast,Niger, Senegal, Togo, and UpperVolta. Two Bankloans-of $80million, in fiscal year 1956,and $7.7 million in fiscal year 1965,respectively-have been assigriedin equalshares to Zambiaand Zimbabwe, but are countedonly once,against Zimbabwe. 12 Representsloans and creditsmade at a time whenthe authoritieson Taiwanrepresented China in the WorldBank. 11ank/lIDA Appendices 185

Statement of Loans Approved Appendix 3 during Fiscal Year 1980 July1, 1979-June30, 1980 Expressedin UnitedStates dollars (in thousands) Cuarantor Dateof Interest Principal Furposeand borrower approval Maturities rate amount Ailgeria WaterSupply and Sewerage:Water Supply Engineering ...... January15,1980 1983/1989 7.95% $ 5,000 Agricultureand RuralDevelopment: First BasCheliff Irrigation.. February26, 1980 1984/1997 8.25% 8,000 Education:Fifth Education(Industrial training) ...... March11, 1980 1984/1998 8.25% 87,000 Algeria (Guarantor) Small-scaleEnterprises: SN MetalTechnical Assistance (Societe Nationalede ConstructionsMetalliques) ...... November13, 1979 1984/1989 7.95% 20,000 Argentina Energy:Yacyreta Hydroelectric ...... October16, 1979 1986/1994 7.90% 210,000 Argentina (Guarantor) Energy:Oil and GasEngineering-Yacimientos Petroliferos FiscalesSociedad del Estado...... June24, 1980 1984/1995 8.25% 27,000 Elarbados Small-scaleEnterprises: Industrial Development and Export Promotion...... March20, 1980 1983/1995 8.25% 10,000 Elolivia Nonproject:Structural Adjustment Loan ...... June5,1980 1986/2000 8.25% 50,000 Elotswana WaterSupply and Sewerage: Second Water Supply ...... October23, 1979 1985/2000 7.90% 4,400 Education:Second Education (Secondary schools and vocationaltraining) ...... April 1,1980 1985/2000 8.25% 10,000 ESrazil DevelopmentFinance Companies: Sao Paulo Industrial PollutionControl ...... March27, 1980 1983/1995 8.25% 58,000 Transportation:Second Urban Transport (Porto Allegre)...... May6, 1980 1983/1995 8.25% 159,000 Education:Northeast Basic Education ...... June 10, 1980 1983/1995 8.25% 32,000 Blrazil (Guarantor) WaterSupply and Sewerage: Southern States Water Supply andSewerage-Banco Nacional da Habitagao...... March27, 1980 1983/1995 8.25% 130,000 Energy:Power Distribution-Companhia Estadual de EnergiaEletrica ...... March27, 1980 1983/1995 8.25% 114,000 WaterSupply and Sewerage:Third MinasGerais Water Supplyand Sewerage-BancoNacional da Habitacao...... May 22,1980 1984/1995 8.25% 139,000 Agricultureand RuralDevelopment: Second Minas Gerais RuralDevelopment-State of MinasGerais ...... June 19, 1980 1984/1995 8.25% 63,000 C:ameroon WaterSupply and Sewerage: Second Water Supply ...... September4, 1979 1985/1999 7.90% 21,000 Agricultureand Rural Development: Second HEVECAM Rubber...... January15, 1980 1985/2000 7.95% 16,500 C:aribbean Region I (Guarantor) DevelopmentFinance Companies: Second Caribbean DevelopmentBank ...... December11, 1979 1985/2000 7.95% 23,000 C:hile WaterSupply and Sewerage: Water Supply ...... April 17,1980 1984/1995 8.25% 38,000 C:olombia(Guarantor) Industry: CerroMatoso Nickel-Cerro Matoso,S. A...... October16, 1979 1984/1993 7.90%u 80,000 Energy:Bogota Power Distribution-Empresa de Energia Electricade Bogota...... March 13,1980 1983/1997 8.25% 87,000 Telecommunications:Fifth Telecommunications-Empresas PGblicasde Medellin...... March27, 1980 1984/1997 8.25% 44,000 Small-scaleEnterprises: Third Small-scaleIndustry-Banco de la RepGblica...... April 17, 1980 1984/1996 8.25% 32,000 DevelopmentFinance Companies: Eighth Industrial Development-Bancode la RepGblica...... z l, ivlay 1980 1984/1997 8.25% 150,000 Energy:Fourth Guadalupe Hydro Power-Empresas PGblicas de Medellin...... June 10, 1980 1984/1997 8.25% 125,000 C:ostaRica Transportation:Fifth Highway...... May15, 1980 1983/1995 8.25% 30,000 C:yprus(Guarantor) Energy:Power Transmission and Distribution-Electricity Authorityof Cyprus...... June 12, 1980 1983/1995 8.25% 16,000

I Theloan was madefor the benefitof the followingBank members-Bahamas,Barbados, Grenada, GuV-.' ind Jamaica-andfor the benefitof the territoriesof the UnitedKingdom's Associated States and Dependenciesin the CaribbeanRegion. The . ill be severallyliable as guarantors to the extentof subloansmade in their territories. {contineed) 186 Bank/lIDA Appendices Statement of Loans Approved during Fiscal Year 1980,,...,d July1,1979-June 30,1980 Expressedin UnitedStates dollars (in thousands) Guarantor Dateof Interest Principal Purposeand borrower approval Maturities rate amount Dominican Republic Nonproject:Imports Financing-HurricaneReconstruction ...... December18, 1979 1984/1997 7.95% $25,000 Transportation:Emergency Road Reconstruction ...... December18, 1979 1984/1997 7.95% 25,000 Transportation:Second Road Maintenance and Reconstruction. December18, 1979 1984/1997 7.95% 35,000 Dominican Republic (Guarantor) Agricultureand RuralDevelopment: Sugar Rehabilitation- ConsejoEstatal del Azucar...... September18, 1979 1984/1996 7.90% 35,000 Ecuador Urbanization:Guayaquil Urban Development...... December11, 1979 1984/1997 7.95%, 31,000 Small-scaleEnterprises: Small-scale Enterprise Credit ...... June19, 1980 1984/1997 8.25% 20,000 Transportation:Sixth Highway...... June 24, 1980 1985/1997 8.25% 55,000 Egypt, Arab Republic of Industry: SecondTextile ...... April 29, 1980 1985/1995 8.25% 69,000 DevelopmentFinance Companies: Misr Iran DevelopmentBank.. May13, 1980 1983/1996 8.25% 30,000 Industry: Pulpand Paper...... May20, 1980 1985/1995 8.25% 50,000 Egypt, Arab Republic of (Guarantor) DevelopmentFinance Companies: Fourth Development IndustrialBank ...... March11, 1980 1984/1995 8.25% 50,000 Energy:Third Power-EgyptianElectricity Authority ...... June 26, 1980 1985/2000 8.25% 7,000 Fiji (Guarantor) Energy:Second Power (Hydroelectric)-Fiji Electricity Authority...... May 29, 1980 1983/1995 8.25% 15,500 Guatemala Transportation:Highway Maintenance ...... May 20, 1980 1985/1997 8.25% 17,000 Honduras Agricultureand RuralDevelopment: Second Agricultural Credit. . April 17, 1980 1985/2000 8.25% 20,000 Energy:Petroleum Exploration Promotion ...... May 29, 1980 1986/2000 8.25% 3,000 Honduras (Guarantor) Energy:El CajonPower (Hydroelectric)-Empresa Nacional de EnergiaElectrica ...... March 11,1980 1986/2000 8.25% 105,000 India Energy:Farakka Thermal Power ...... June26, 1980 1985/2000 8.25% 25,000 India (Guarantor) DevelopmentFinance Companies: Thirteenth Industrial Credit and InvestmentCorporation of India...... May 13,1980 1983/1997 8.25% 100,000 Indonesia Agricultureand RuralDevelopment: Third NucleusEstates and Smaliholders(Rubber) ...... August 9,1979 1986/1999 7.90% 99,000 Agricultureand RuralDevelopment: Fourteenth Irrigation ...... March18, 1980 1985/2000 8.25% 116,000 Agricultureand RuralDevelopment: Fourth Nucleus Estates andSmaliholders (Oil palm,food crops)...... April 17,1980 1985/2000 8.25% 42,000 Agricultureand RuralDevelopment: National Agricultural Research...... May6,1980 1985/2000 8.25% 35,000 Population,Health, and Nutrition:Third Population(Planning and healthcare)...... _...... June 10, 1980 1986/2000 8.25%7 35,000 Energy:Ninth Power(Generationand transmission, Java) ...... June12, 1980 1985/2000 8.25% 253,000 Ivory Coast Education:Third Education(Vocational and primaryteacher training,educational planning) ...... December11, 1979 1984/1996 7.95% 24,000 Agricultureand RuralDevelopment: North-East Savannah RuralDevelopment ...... March27, 1980 1984/1997 8.25% 9,400 Jordan Education:Third Education(Vocational and technical training) ... December13, 1979 1984/1996 7.95% 19,000 DevelopmentFinance Companies: Cities and Villages DevelopmentBank...... March27, 1980 1984/1997 8.25% 10,000 Kenya (Guarantor) Energy:Olkaria Geothermal Power-The KenyaPower CompanyLtd ...... January22, 1980 1985/1999 7.95% 40,000 DevelopmentFinance Companies: Fourth Industrial DevelopmentBank ...... March25, 1980 1983/1998 8.25% 30,000 Korea, Republic of Urbanization:Second Gwangju Regional ...... September11, 1979 1984/1996 7.90% 65,000 Population,Health, and Nutrition:Population (Planning and healthcare) ...... December11, 1979 1984/1997 7.95% 30,000 Education:Education Sector Loan (Higher technical education)...... February19, 1980 1984/1997 8.25% 100,000 Transportation:Seventh Railway ...... April 29, 1980 1985/1997 8.25% 94,000 Bank/lIDA Appendices 187 Appendix 3

;uarantor Dateof Interest Principal lurposeand borrower approval Maturities rate amount

[Korea, Republic of (Guarantor) DevelopmentFinance Companies: Third Smalland Medium Industry Bank ...... July 12, 1979 1980/1996 7.90% $ 60,000 Energy:Gojeong Power (Thermal)-Korea ElectricCompany ..... December20, 1979 1984/1997 7.95% 115,000 DevelopmentFinance Companies: Citizens National Bank ...... April 15, 1980 1983/1997 8.25% 30,000 Agricultureand RuralDevelopment: Second Agricultural Processing-Agricultureand FisheryDevelopment Corporation...... May 22, 1980 1984/1996 8.25% 50,000 L.iberia Agricultureand RuralDevelopment: Oil PalmDevelopment ...... October30, 1979 1985/1999 7.95% 12,000 M'Aalaysia(Guarantor) Energy:Ninth Power(Hydroelectric)-NationalElectricity Boardof the Statesof Malaya ...... March13, 1980 1984/1997 8.25% 50,000 MV1auritania(Guarantor) Industry:Guelbs Iron Ore-Societe NationaleIndustrielle et Miniere...... July 12, 1979 1984/1994 7.90% 60,000 IMauritius (Guarantor) DevelopmentFinance Companies: Fifth DevelopmentBank of Mauritius ...... December27, 1979 1983/1995 7.95% 6,000 MHexico(Guarantor) Small-scaleEnterprises: Small and Medium-scaleMining Development-NacionalFinanciera, S. A ...... March25, 1980 1984/1997 8.25% 40,000 Agricultureand RuralDevelopment: Apatzingan Irrigation- NacionalFinanciera, S. A ...... May29, 1980 1985/1997 8.25% 160,000 Small-scaleEnterprises: Second Small and Medium-scaleIndustry Development-Nacional Financiera,S. A...... June24, 1980 1984/1997 8.25% 100,000 MVlorocco Agricultureand RuralDevelopment: Vegetable Production and Marketing...... September11, 1979 1984/1994 7.90% 58,000 Transportation:Third Highway ...... April 15, 1980 1984/1999 8.25% 62,000 Agricultureand RuralDevelopment: Loukkos Rural Development...... May20, 1980 1984/2002 8.25% 34,000 MV1orocco(Guarantor) Energy:Petroleum Exploration-Bureau de Rechercheset de ParticipationsMinieres ...... April 15, 1980 1984/1990 8.25% 50,000 Nicaragua Agricultureand RuralDevelopment: Agricultural and IndustrialRehabilitation ...... December18, 1979 1985/1999 7.95% 20,000 Nigeria Urbanization:Urban Development(Infrastructure for low-income households)...... November13, 1979 1985/2000 7.95% 17,800 Agricultureand RuralDevelopment: Oyo-North Agricultural Development...... April 29, 1980 1985/2000 8.25% 28,000 Agricultureand RuralDevelopment: Ekiti-Akoko Agricultural Development...... May27, 1980 1986/2000 8.25% 32,500 Transportation:Sixth Highway...... June 24, 1980 1986/2000 8.25% 108,000 Nigeria (Guarantor) Energy:Lagos Power Distribution-National Electric Power Authority...... November13, 1979 1985/2000 7.95% 100,000 Oman (Guarantor) Telecommunications:First Telecommunications-Oman TelecommunicationCorporation ...... June24, 1980 1985/1990 8.25% 22,000 I'anama Urbanization:Colon Urban Development ...... June19, 1980 1985/1997 8.25% 35,000 lIanama (Guarantor) Energy:Fifth Power-Institutode RecursosHidraulicos y Electrificaci6n(Subtransmission and distributionexpansion) .... December13, 1979 1984/1996 7.95% 23,000 I'apua New Guinea Transportation:Third Highway...... May27, 1980 1986/2000 8.25% 17,000 I'araguay Nonproject:Second Preinvestment Studies ...... December13, 1979 1984/1996 7.95% 5,000 DevelopmentFinance Companies: Industrial Credit and RegionalDevelopment ...... June5,1980 1984/1997 8.25% 31,000 (continued) 188 Bank/lIDA Appendices Statement of Loans Approved during Fiscal Year 1980o.med, July1, 1979-June30, 1980 Expressedin UnitedStates dollars (in thousands) Guarantor Dateof Interest Principal Purposeand borrower approval Maturities rate amount Peru Agricultureand RuralDevelopment: Second Irrigation Rehabilitation-LowerPiura ...... November27, 1979 1984/1997 7.95% $ 56,000 Agricultureand RuralDevelopment: Puno Rural Development .... March18, 1980 1984/1997 8.25% 15,000 Industry: BayovarPhosphate Engineering and Technical Assistance...... June26, 1980 1983/1990 8.25% 7,500 Peru (Guarantor) Energy:Petroleum Production Rehabilitation-Petr6leos del PerGand Corporaci6n Financiera de Desarrollo...... March11, 1980 1983/1996 8.25% 32,500 Philippines Agricultureand Rural Development: Samar Island Rural Development...... December4, 1979 1985/2000 7.95% 27,000 Education:Fishery Training and Technology ...... December18, 1979 1985/2000 7.95% 38,000 Agricultureand RuralDevelopment: Medium-scale Irrigation . ... March13, 1980 1985/2000 8.25% 71,000 WaterSupply and Sewerage:Manila Sewerage and Sanitation... March20, 1980 1985/2000 8.25% 63,000 Agricultureand RuralDevelopment: Rainfed Agricultural Development(Iloilo) ...... March20, 1980 1985/2000 8.25% 12,000 Urbanization:Third UrbanDevelopment ...... March25, 1980 1985/2000 8.25% 72,000 Transportation:Third Ports...... May27, 1980 1985/2000 8.25% 67,000 Transportation:Rural Roads Improvement ...... May29, 1980 1985/2000 8.25% 62,000 Portugal Education:Second Education (Post-secondary teacher, agriculturaltechnician, and vocational training) ...... January15, 1980 1983/1995 7.95% 40,000 Agricultureand RuralDevelopment: Forestry ...... May27, 1980 1983/1995 8.25% 50,000 Portugal (Guarantor) Industry: MechanicalIndustries-Companhia MetalGrgica NacionalS.A.R.L. and SociedadesReunidas de Fabricacoes MetalicasS.A.R.L ...... June19, 1980 1984/1995 8.25% 44,000 Romania (Guarantor) Agricultureand RuralDevelopment: Third Livestock-Bankfor Agricultureand FoodIndustry ...... October30, 1979 1983/1994 7.95% 85,000 Transportation:Danube-Black Sea Canal-Banca de Investitii.. . January22, 1980 1984/1995 7.95% 100,000 Agricultureand RuralDevelopment: Covurlui Irrigation- Bankfor Agricultureand FoodIndustry ...... January22, 1980 1983/1995 7.95% 90,000 Agricultureand RuralDevelopment: Orchards-Bank for Agricultureand FoodIndustry ...... June 19,1980 1983/1995 8.25% 50,000 Senegal Transportation:Fourth Highway ...... March18, 1980 1985/2000 8.25% 10,000 Swaziland Education:Third Education(Primary and junior secondary education,public administration,textbooks) ...... January15, 1980 1985/1999 7.95% 10,100 Tanzania (Guarantor) DevelopmentFinance Companies: Fourth Tanzania InvestmentBank ...... July 24, 1979 1983/1994 7.90% 25,000 Thailand Agricultureand RuralDevelopment: Second National AgriculturalExtension ...... August 9, 1979 1985/1999 7.90% 40,000 Agricultureand RuralDevelopment: Eleventh Irrigation ...... December20, 1979 1985/2000 7.95% 80,000 Agricultureand RuralDevelopment: Agricultural Credit ...... March20, 1980 1985/2000 8.25% 19,000 Urbanization:National Sites and Services...... June 12,1980 1986/2000 8.25% 29,000 Thailand (Guarantor) Energy:Khao Laem Hydroelectric-Electricity Generating Authorityof Thailand...... November27, 1979 1985/1999 7.95% 80,000 Energy:Second Natural Gas Pipeline-Petroleum Authority of Thailand...... December11, 1979 1985/2000 7.95% 107,000 Energy:Mae Moh Lignite-ElectricityGenerating Authority of Thailand...... May 22,1980 1986/2000 8.25% 72,000 WaterSupply and Sewerage: Provincial Water Supply- ProvincialWater Works Authority ...... June3, 1980 1986/2000 8.25% 40,000 Energy:Second Accelerated Rural Electrification-Provincial ElectricityAuthority ...... June 12,1980 1986/2000 8.25% 75,000 Tunisia Agricultureand RuralDevelopment: Southern Irrigation ...... January22, 1980 1986/1997 7.95% 25,000 Transportation:Fourth Highway ...... May 13,1980 1984/1997 8.25% 36,500 Bank/lIDA Appendices 189 Appendix 3

Guarantor Date of Interest Principal Purpose and borrower approval Maturities rate amount Tunisia (Guarantor) Transportation:Third Ports(La Gouletteand Sfax)-Office des Ports Nationaux...... January22, 1980 1984/1997 7.95%7 $ 42,500 Energy:Second Natural Gas Pipeline-Societ& Tunisienne de l'Electriciteet du Gaz...... June5, 1980 1984/1997 8.25% 37,000 Agricultureand RuralDevelopment: Third AgriculturalCredit- BanqueNationale de Tunisie...... June26, 1980 1985/1994 8.25% 30,000 Turkey WaterSupply and Sewerage: Ankara Air PollutionControl ...... October23, 1979 1982/1989 7.95% 6,000 Nonproject:Structural Adjustment Loan ...... March25, 1980 1984/1997 8.25% 200,000 Energy:Karakaya Hydropower ...... May 15,1980 1984/1997 8.25% 120,000 Industry: SumerbankCotton Textile Rationalization...... May 20,1980 1984/1997 8.25% 83,000 Agricultureand RuralDevelopment: Fifth Livestock Development...... June3, 1980 1985/1997 8.25% 51,000 Turkey (Guarantor) DevelopmentFinance Companies: Thirteenth Turkiye Sinai KalkinmaBankasi A.S ...... July 12, 1979 1983/1994 7.90% 60,000 DevelopmentFinance Companies: Private Sector Textiles- TurkiyeSinai KalkinmaBankasi A.S. and Sinai Yatirimve Kredi BankasiA.O ...... September4, 1979 1983/1994 7.90% 80,000 Uruguay Agricultureand RuralDevelopment: Agricultural Development April 15, 1980 1983/1995 8.25% 24,000 Uruguay (Guarantor) Energy:Fifth Power(Distribution expansion)-Administraci6n Nacionalde Usinasy TransmisionesElectricas ...... December13, 1979 1983/1994 7.95% 24,000 Transportation:Montevideo Port-Administraci6n Nacional de Puertos...... January22, 1980 1983/1995 7.95% 50,000 Yugoslavia (Guarantor) Agricultureand RuralDevelopment: Croatia Sava Drainage- ZagrebackaBanka ...... September4, 1979 1983/1994 7.90% 51,000 Transportation:Montenegro Earthquake Rehabilitation, Highways-Self-ManagingRepublic Community of Interest for Roadsof the SocialistRepublic of Montenegro...... September18, 1979 1983/1994 7.90% 21,000 Transportation:Montenegro Earthquake Rehabilitation, Port of Bar-Port of Bar WorkingOrganization ...... November27, 1979 1983/1994 7.95% 50,000 Transportation:Montenegro Earthquake Rehabilitation, Railways-RailwayTransport Organization Titograd ...... November27, 1979 1983/1994 7.95% 14,000 Agricultureand RuralDevelopment: Third AgriculturalCredit- VojvodjanskaBanka-Udruzena Banka ...... February26, 1980 1983/1995 8.25% 86,000 Transportation:Eleventh Highway-Roads Organizations of Slovenia,Croatia, Serbia, and Vojvodina ...... March25, 1980 1983/1995 8.25% 125,000 ;Zambia Transportation:Third Railway...... December27, 1979 1985/1999 7.95% 25,000 TOTALof Loansto or Guaranteedby Members . . . .$7,644,200 190 Bank/lIDA Appendices Statement of Development Credits Approved during Fiscal Year 1980 July1, 1979-June30, 1980 Expressedin UnitedStates dollars (in thousands) Borrower Dateof Service Principal Purpose approval Maturities charge amount

Bangladesh Agricultureand RuralDevelopment: Small-scale Drainage and FloodControl ...... October16, 1979 1989/2029 0.75% $ 25,000 Transportation:Second Highway ...... December13, 1979 1990/2029 0.75% 10,000 Nonproject:Eighth Imports ...... February12, 1980 1990/2030 0.75% 50,000 Agricultureand RuralDevelopment: Low-lift Pump Irrigation.... March11, 1980 1990/2029 0.75% 37,000 WaterSupply and Sewerage:Second Chittagong Water Supply ... March25, 1980 1990/2030 0.75% 20,000 Industry: FertilizerIndustry Rehabilitation ...... May20, 1980 1990/2030 0.75% 29,000 Small-scaleEnterprises: Jute IndustryRehabilitation ...... May29, 1980 1990/2030 0.75% 20,000 Agricultureand RuralDevelopment: Mangrove Afforestation ..... June10, 1980 1990/2030 0.75% 11,000 Agricultureand RuralDevelopment: Second Fertilizer Imports... June12, 1980 1990/2030 0.75% 25,000 Education:Fourth Education (Primary) ...... June26, 1980 1990/2030 0.75% 40,000 Benin Small-scaleEnterprises: Industrial Development ...... _ ...... March20, 1980 1990/2030 0.75% 10,000 Bolivia WaterSupply and Sewerage:Santa Cruz Water Supply and Sewerage...... July 12,1979 1989/2029 0.75% 9,000 Energy:Gas and Oil Engineering February26, 1980 1990/2030 0.75% 16,000 Burma Agricultureand RuralDevelopment: Second Forestry- EastPegu Yma .August 9, 1979 1990/2029 0.75% 35,000 Telecommunications:Second Telecommunications .November 27, 1979 1990/2029 0.75% 35,000 Agricultureand RuralDevelopment: Nyaunggyat Dam Multipurpose...... May29, 1980 1990/2030 0.75% 90,000 Burundi Education:Second Education (Middle-level technicians, industrial andadministrative skills) ...... January29, 1980 1990/2029 0.75% 15,000 Urbanization:Urban Development ...... June24, 1980 1990/2030 0.75% 15,000

Cameroon Agricultureand RuralDevelopment: Second HEVECAM Rubber . January15, 1980 1990/2029 0.75% 15,000 Agricultureand RuralDevelopment: Second Livestock Development...... April 22, 1980 1990/2030 0.75% 16,000 Caribbean Region DevelopmentFinance Companies: Second Caribbean DevelopmentBank ...... December11, 1979 1990/2029 0.75% 7,000 Comoros Agricultureand RuralDevelopment: Coconut Rehabilitation and RodentControl ...... June3,1980 1990/2029 0.75% 5,200 Congo, People's Republic of the Energy:Petroleum Sector Technical Assistance ...... December27, 1979 1990/2029 0.75% 5,000 Transportation:Supplementary Financing for the Second RailwayProject ...... June19, 1980 1990/2030 0.75% 30,000 Egypt, Arab Republic of Agricultureand RuralDevelopment: Agro-industries ...... March11, 1980 1990/2029 0.75% 45,000 Energy:Cairo Gas Distribution ...... May20, 1980 1990/2030 0.75% 50,000 Energy:Third Power(Hydroand thermal)...... June26, 1980 1990/2030 0.75% 120,000 Ghana Agricultureand RuralDevelopment: Volta RegionAgricultural Development.April 22, 1980 1990/2029 0.75% 29,500 Transportation:Third Highway(Emergency maintenance) May27, 1980 1990/2030 0.75% 25,000 Guinea Agricultureand RuralDevelopment: Rice Development ...... September18, 1979 1990/2029 0.75% 10,400 Transportation:Second Highway ...... September18, 1979 1989/2029 0.75% 13,000 Honduras Energy:El CajonPower (Hydroelectric) ...... March11, 1980 1990/2030 0.75% 20,000 Agricultureand RuralDevelopment: Second Agricultural Credit. . April 17, 1980 1990/2030 0.75% 5,000 Bank/liDA Appendices 191 Appendix 4

Eorrower Date of Service Principal Furpose approval Maturities charge amount India Agricultureand RuralDevelopment: Third Agricultural Refinanceand DevelopmentCorporation-Rural Credit ...... July 12,1979 1989/2029 0.75% $250,000 Agricultureand RuralDevelopment: Second Maharashtra Irrigation ...... October16,1979 1990/2029 0.75% 210,000 Agricultureand Rural Development: Gujarat Community Forestry...... December11, 1979 1990/2029 0.75% 37,000 Agricultureand RuralDevelopment: Inland Fisheries...... December13, 1979 1990/2029 0.75% 20,000 Population,Health, and Nutrition:Second Population (Integratedfamily welfare) ...... February12, 1980 1990/2029 0.75% 46,000 Population,Health, and Nutrition:Tamil NaduNutrition ...... April 15, 1980 1990/2030 0.75% 32,000 Agricultureand Rural Development: Uttar PradeshPublic Tubewells...... April 15, 1980 1990/2030 0.75% 18,000 4gricultureand Rural Development: Second Gujarat Irrigation ... April 29, 1980 1990/2030 0.75% 175,000 Agricultureand Rural Development: Cashewnut ...... April 29, 1980 1990/2030 0.75% 22,000 Energy:Second Singrauli Thermal Power ...... May22, 1980 1990/2030 0.75% 300,000 Agricultureand RuralDevelopment: Kerala Agricultural Extension...... May22, 1980 1990/2030 0.75% 10,000 Jrbanization:Calcutta Urban Transport ...... _.... June3,1980 1990/2030 0.75% 56,000 Agricultureand Rural Development: Karnataka Sericulture ...... June3,1980 1990/2030 0.75% 54,000 WlaterSupply and Sewerage: Rajasthan Water Supply and Sewerage...... June19, 1980 1990/2030 0.75% 80,000 Energy:Farakka Thermal Power ...... June26, 1980 1990/2030 0.75% 225,000 Ilidonesia Agricultureand Rural Development: Yogyakarta Rural Development...... July 12, 1979 1989/2029 0.75% 12,000 Agricultureand Rural Development: Smallholder Rubber Development...... February19, 1980 1990/2030 0.75% 45,000 Agricultureand Rural Development: Fifteenth Irrigation ...... March18, 1980 1990/2029 0.75% 45,000 Agricultureand RuralDevelopment: Second National AgriculturalExtension ...... March18, 1980 1990/2030 0.75% 42,000 Agricultureand Rural Development: National Agricultural Research...... May 6,1980 1990/2030 0.75% 30,000 lKenya Agricultureand RuralDevelopment: Second Integrated AgriculturalDevelopment ...... December4, 1979 1990/2029 0.75% 46,000 Agricultureand RuralDevelopment: Baringo Pilot Semi-arid Areas...... December11, 1979 1990/2029 0.75% 6,500 Nonproject:Structural Adjustment Credit ...... March25, 1980 1990/2029 0.75% 55,000 TechnicalAssistance: Export Promotion Technical Assistance .... June12, 1980 1990/2030 0.75% 4,500 Agricultureand Rural Development: Fisheries ...... June24, 1980 1990/2030 0.75% 10,000 Lao People's Democratic Republic Agricultureand Rural Development: Third Agricultural Rehabilitationand Development ...... May15, 1980 1990/2030 0.75% 13,400 Lesotho l)evelopmentFinance Companies: Second Lesotho National DevelopmentCorporation ...... February26, 1980 1990/2030 0.75% 4,000 lJrbanization:Urban Development...... June3, 1980 1990/2030 0.75% 6,000 Niadagascar D)evelopmentFinance Companies: Bankin'ny Indostria ...... January29, 1980 1990/2029 0.75% 5,000 Energy:Andekaleka Hydroelectric ...... January29, 1980 1988/2028 0.75% 10,000 WaterSupply and Sewerage:Water and Sanitation (Antananarivo)...... April 1, 1980 1990/2029 0.75% 20,500 Energy:Petroleum Exploration Promotion ...... May6, 1980 1990/2030 0.75% 12,500 Nialawi Agricultureand Rural Development: National Rural Development Program(Phase II) ...... March13, 1980 1990/2030 0.75% 13,800 Nlali Small-scaleEnterprises: Industrial Development ...... February26, 1980 1990/2030 0.75% 8,000

fcontinuedj 192 Bank/IDA Appendices Statement of Development Credits Approved during Fiscal Year 1980(,cnti..ed, July1,1979-June 30, 1980 Expressedin UnitedStates dollars (in thousands) Borrower Dateof Service Principal Purpose approval Maturities charge amount Nepal Agricultureand RuralDevelopment: Community Forestry andTraining ...... April 22, 198C 1990/2030 0.75% $17,000 Agricultureand RuralDevelopment: Mahakali Irrigation (StageI) ...... June 26,1980 1990/2030 0.75% 16,000 Nicaragua Urbanization:Urban Reconstruction ...... December18, 1979 1990/2029 C.75% 22,000 Agricultureand RuralDevelopment: Agricultural and Industrial Rehabilitation ...... December18, 1979 1990/2029 0.75% 10,000 Niger Agricultureand RuralDevelopment: Dosso Agricultural Development...... December20, 1979 1990/2029 0.75% 20,000 Agricultureand RuralDevelopment: Second Maradi Rural Development...... May20, 1980 1990/2030 0.75% 16,700 Pakistan Agricultureand RuralDevelopment: Fourth Agricultural DevelopmentBank ...... November13, 1979 1990/2029 0.75% 30,000 Energy:Third WAPDAPower (Water and PowerDevelopment Authority)...... December20, 1979 1990/2029 0.75% 45,000 Transportation:Third Highway...... January15, 1980 1990/2029 0.75% 50,000 DevelopmentFinance Companies: PICIC Industrial Development (PakistanIndustrial Credit and InvestmentCorporation, Ltd.). May15, 1980 1990/2030 0.75% 40,000 Papua New Guinea Transportation:Third Highway...... May27, 1980 1990/2030 0.75% 13,000 Rwanda Agricultureand RuralDevelopment: Integrated Forestry and LivestockDevelopment...... June5,1980 1990/2030 0.75% 21,000 Senegal Agricultureand RuralDevelopment: Small RuralOperations .... March11, 1980 1990/2029 0.75% 11,000 Transportation:Fourth Highway ...... March18, 1980 1990/2029 0.75% 28,000 Energy:Power Engineering and Technical Assistance ...... May22, 1980 1984/1990 0.75% 3,300 Sierra Leone TechnicalAssistance (Development planning, project preparation,evaluation of investmentprograms) ...... December27, 1979 1990/2029 0.75% 2,500 Somalia Agricultureand RuralDevelopment: Bay RegionAgricultural Development...... December27, 1979 1990/2029 0.75% 12,000 Energy:Petroleum Exploration Promotion ...... June 10, 1980 1990/2030 0.75% 6,000 Sri Lanka TechnicalAssistance: Mahaweli Ganga Technical Assistance ... January29, 1980 1990/2030 0.75% 3,000 Transportation:Road Passenger Transport ...... March18, 1980 1990/2030 0.75% 53,000 Agricultureand RuralDevelopment: Smaliholder Rubber Rehabilitation...... May6,1980 1990/2030 0.75% 16,000 Telecommunications(Telephone expansion) ...... May15, 1980 1990/2030 0.75% 30,000 WaterSupply and Sewerage: Second Water Supply and Sewerage...... June10, 1980 1990/2030 0.75% 30,000 Energy:Sixth Power(Hydro transmission and distribution) ...... June 19,1980 1990/2030 0.75% 19,500 Sudan NonproJect:Agricultural Rehabilitation Program ...... March25, 1980 1990/2030 0.75% 65,000 Energy:Third Power(Hydroelectric) ...... April 17, 1980 1990/2030 0.75% 65,000 Agricultureand RuralDevelopment: New Halfa Irrigation Rehabilitation...... May15, 1980 1990/2030 0.75% 40,000 Tanzania Transportation:Dar es SalaamPort Engineering . . December27, 1979 1982/1989 0.75% 2,500 Agricultureand RuralDevelopment: Tanzania Rural DevelopmentBank ...... March4,1980 1990/2030 0.75% 10,000 Agricultureand RuralDevelopment: Pyrethrum ...... April 17,1980 1990/2030 0.75% 10,000 Agricultureand RuralDevelopment: Grain Storage and Milling .. May6, 1980 1990/2030 0.75% 43,000 Agricuiltureand RuralDevelopment: Smaliholder Tea Consolidation...... June3, 1980 1990/2030 0.75% 14,000 Energy:Songo Songo Petroleum Exploration ...... June 12, 1980 1983/1990 0.75% 30,000 B'ank/lIDA Appendices 193 Appendix 4

Borrower Dateof Service Principal Purpose approval Maturities charge amount Togo Education:First Education(Primary teacher colleges) ...... May13, 1980 1990/2030 0.75% $ 11,000 Uganda Nonproject:Reconstruction Program ...... February19, 1980 1990/2029 0.75% 72,500 IJpper Volta Education:Second Education (Rural educationand training of constructionpersonnel) ...... October23, 1979 1990/2029 0.75% 14,000 Agricultureand RuralDevelopment: Forestry ...... February12, 1980 1990/2029 0.75% 14,500 Agricultureand RuralDevelopment: Niena Dionkele Rice Development(including irrigation) ...... April 29, 1980 1990/2030 0.75% 6,500 'Nestern Africa Region TechnicalAssistance: Banque Ouest Africaine de Developpement(BOAD)I ...... December27, 1979 1990/2029 0.75% 3,000 'Western Samoa Agricultureand RuralDevelopment: Agricultural Development (Islandof Savai'i)...... September18, 1979 1990/2029 0.75% 8,000 Yemen Arab Republic WaterSupply and Sewerage: Water Supply and Sewerage for lbb and Damar...... September4, 1979 1989/2029 0.75% 12,000 Agricultureand RuralDevelopment: Fourth Tihama Development(Second Wadi Rima) ...... January29, 1980 1990/2029 0.75% 5,500 Agricultureand RuralDevelopment: Fisheries Development .... May20, 1980 1990/2030 0.75% 17,000 Yemen, People's Democratic Republic of WaterSupply and Sewerage: Greater Aden WaterSupply ...... June5,1980 1990/2030 0.75% 13,200 Energy:Petroleum Exploration Promotion ...... June 24,1980 1990/2030 0.75% 9,000 Zaire DevelopmentFinance Companies: Fifth SOFIDE (Soci6te Financierede D6veloppement)...... March20, 1980 1990/2030 0.75% 18,500 Agricultureand Rural Development: Smallholder Maize ...... June5,1980 1990/2030 0.75% 11,000 Zambia Transportation:Third Railway...... December27, 1979 1990/2029 0.75% 15,000

TOTALof Credits .. . $3,837,500

1 BOADis theregional development bank of the UnionMonetaire Ouest Africaine (UMOA), the monetaryunion of six francophoneWestern African states- Benin,Ivory Coast,Niger, Senegal, Togo, and UpperVolta. 194 Bank/IDA Appendices

Administrative Budgets Appendix 5 of the Bank and IDA Forthe fiscal year endingJune 30, 1981

Actualexpenses Budget 1980 1981 (Thousandsof US dollars)

BY ORGANIZATION UNIT Boardof Governors...... 1,980 1,876 ExecutiveDirectors 8,691 10,317 ExecutiveOffices ...... 1,973 1,972 RegionalOffices . .160,667 179,300 CentralProjects Staff . .45,329 56,042 CooperativePrograms-FAO, Unesco, WHO, and UNIDO. . 9,204 11,181 DevelopmentPolicy Staff . .21,575 25,542 FinancialStaff . .23,985 26,520 OperationsEvaluation Staff ...... 2,907 3,889 Legal,ICSID, and Secretary's 8,128 9,293 ExternalRelations ...... 10,997 11,732 EconomicDevelopment Institute . .8,317 9,572 Administration,Organization, Personnel Management 45,341 51,840 ConsultativeGroup on InternationalAgricultural Research. 859 1,184 ReimbursableTechnical Assistance ...... 5,411 7,159 Contingencyallowance . .- 3,000 TOTAL . .355,364 410,419 Less:Reimbursements -14,650 -15,464 IFCservice and support fee . . -2,447 -2,874 TOTALIBRD .338,267/IDA 392,081

BY EXPENSE CATEGORY Personalservices 228,433 268,239 Operationaltravel 38,678 43,390 Representation 909 1,063 Consultants 23,714' 30,095' Contractualservices ...... 12,172 10,377 Overheadexpenses Othertravel ...... 14,028 15,107 Officeoccupancy ...... 16,337 17,889 Communications 7,850 8,075 Otherexpenses ...... 13,243 13,184 Contingency - 3,000 TOTAL...... 355,364 410,419 Less:Reimbursements -14,650 -15,464 IFC serviceand supportfee ...... -2,447 -2,874 2 TOTALIBRD/IDA ...... 338,267 392,081 Of which: IBRD...... 197,967 235,952 IDA.140,300 156,129

NOTE:The AdministrativeBudgets for the fiscal yearending June 30, 191S,were approved by the Executive Directorsin accordancewith the By-Lawsof the Bankand IDA. Forpurposes ot comparison,the administrativeexpenses incurred during the fiscalyear endedJune 30, 1980,are also shown. ' Thefigures shown include the costsof the CooperativePrograms. 2 In fiscal 1981,general assistance rendered by the Bankto IFC will be paidfor by a serviceand support fee, whichhas been established for the yearat $2,874,000. Bank/liD Appendices 195

Governors and Alternates Appendix 6 of the Bank and IDA Jtine30, 1980

Member Governor Alternate Afghanistan...... Ministerof Finance...... Khair MohammadSultani Algeria ...... M'HamedHadj-Yala ...... MohamedTerbeche Argentina...... JoseA. Martinezde Hoz ...... AdolfoC. Diz Australia ...... J. W. Howard...... J. C. Ingram Austria ...... HannesAndrosch ...... RobertPollak BahamasI ...... ArthurD. Hanna...... EthelynC. Isaacs Bahrain' ...... IbrahimAbdul Karim ...... IsaAbdullah Burshaid Bangladesh...... SaifurRahman ...... A. M. A. Muhith BarbadosI...... J. M. G.M. Adams...... StephenE. Emtage Belgium...... R. Henrion...... Cecilde Strycker Benin ...... AbouBakar Baba-Moussa ...... (vacant) Eolivia...... AdolfoAramayo Anze ...... WenceslaoAlba Quiroz Eotswana...... Q. K. J. Masire...... BaledziGaolathe EFrazil...... ErnaneGalveas ...... CarlosGeraldo Langoni E,urma...... UTun Tin ...... U MyoMyint Elurundi...... AstereGirukwigomba ...... JeanNdimurukundo (ameroon ...... YoussoufaDaouda ...... Louis-ClaudeNyassa (anada ...... AllanJ. MacEachen...... MarcelMasse CapeVerde ...... CorentinoSantos ...... AntonioHilario Cruz CentralAfrican Republic ...... Jean-PierreLe Bouder ...... ZoungoulaAbel Chad ...... LaoukissamFeckoua ...... BlayoNgartando Chile ...... Sergiode Castro Spikula ...... JuanCarlos Mendez Gonzalez China ...... WuBo ...... Li Peng Colombia...... JaimeGarcia Parra ...... RafaelGama Quijano Comoros ...... SaidKafe...... Si MohamedNacr-ed-Dine Congo,People's Republic of the...... PierreMoussa...... AndreBatanga CostaRica ...... HernanSaenz Jimenez ...... ManuelNaranjo C. Gyprus ...... AfxentisC. Afxentiou...... (vacant) D)enmark...... KjeldOlesen ...... KajRepsdorph DominicanRepublic ...... CarlosDespradel ...... RafaelHernandez Machado .cuador . .Le6n RoldosAguilera .. FranciscoSweft Egypt,Arab Republic of ...... AbdelRazak Abdel Meguid 2...... M. SamirKoraiem ElSalvador ...... OscarMenjivar ...... RobertoSalazar Candell EquatorialGuinea ...... CarmeloOwono Ndong .Juan EfuaEfua Asangono Ethiopia ...... TeferraWolde-Semait .Desta Beshaw Fiji ...... CharlesWalker ...... WinstonThompson Finland. . PirkkoTyolajarvi .Annikki Saarela France Renaudde la Genire .Marcel Theron Gabon PascalNze. J. F6lixMamalepot Gambia,The MohamaduCadi Cham .T. G.G. Senghore Germany,Federal Republic of HansMatthoefer ... . RainerOffergeld Ghana AmonNikoi EbenezerLartey Nyakotey Greece JohnBoutos JohnPaleokrassas Grenada.. BernardCoard .Dessima Williams Guatemala HugoTulio Bicaro Garcia .Juan ValentinSolorzano F. Guinea SaikouBarry. MohamedLamine Toure Guinea-Bissau VictorFreire Monteiro .Jose LimaBarber Guyana ...... F. E.Hope .C. B. Hinds Haiti ...... HerveBoyer .Antonio Andre Honduras ...... _ ValentinJ. Mendoza.Praxedes MartinezS. Iceland ...... TomasArnason .Ragnar Arnalds India...... R.Venkataraman .R. N. Malhotra Indonesia...... RachmatSaleh .Soegito Sastromidjojo Iran ...... Ministerof EconomicAffairs and Finance. CyrusEbrahimzadeh Iraq...... ThamerRezooki .Subhi Frankool Ireland ...... MichaelO'Kennedy .Tomas F.6 Cofaigh Israel...... ArnonGafny .Yaakov Ne'eman Italy...... CarloCiampi ...... FeliceRuggiero IvoryCoast ...... AbdoulayeKon. LeonNaka JamaicaI...... R. H. P. Small.Kingsley Robotham Japan ...... NoboruTakeshita .Haruo Mayekawa Jordan ...... HannaSalim Odeh .Hashim A. Dabbas Kampuchea,Democratic ...... (vacant).(vacant) Kenya ...... MwaiKibaki .Nicholas Nganga Korea,Republic of ...... Seung-YunLee .Joon SungKim 2 Kuwait ...... AbdulRahman Salim Al-Ateeqy .Abdlatif Y. Al-Hamad

(continued) 196 Bank/IDA Appendices

Governors and Alternates Appendix 6 of the Bank and IDA coflthwedj June30, 1980 Member Governor Alternate LaoPeople's Democratic Republic ...... BousbongSouvannavong ...... (vacant) Lebanon ...... KhattarChebli ...... SabbahAl-Hai Lesotho ...... E. R.Sekhonyana ...... Q. Moji Liberia ...... PerryG. Zulu . . . Togba-NahTipoteh Libya ...... MohammadZarrough Rajab ... AbdullaA. Saudi Luxembourg...... ErnestMuehlen . . . RaymondKirsch Madagascar ...... RakotovaoRazakaboana . . . RajaonaAndriamananjara Malawi...... LouisJ. Chimango...... J. B. L. Malange Malaysia ...... RazaleighHamzah ...... ThongYaw Hong Maldives...... FathullaJameel ...... AdamManiku Mali...... RobertTiebl6 N'Daw . . . IbrahimBocar Ba Mauritania...... AhmedOuld Zein . . . M'RabihRabou Ould Chekh Bounena Mauritius...... RabindrahGhurburrun . . ... MadhukarlallBaguant Mexico...... DavidIbarra Munoz . . ... JorgeEspinosa de los Reyes Morocco ...... AbdelkamelRerhaye . . . AbdelkaderBenslimane Nepal...... YadavPrasad Pant . . . GorakshaBahadur Nhuchhe Pradhan Netherlands ...... A. P.J. M. M. vander Stee ... J. de Koning NewZealand ...... N. V. Lough...... C. H.Terry Nicaragua...... JoaquinCuadra Chamorro . .... HaroldoMontealegre Niger ...... MaiMai-Gana . . . MahamaneAnnou Nigeria ...... SundayMatthew Essang . . . AdemolaThomas 2 Norway ...... Ulf Sand . . . JohanJoergen Hoist Oman...... QaisAbdul MunimZawawi ...... Sherif Loftfy Pakistan ...... Ghulamlshaq Khan ... AftabAhmad Khan Panama ...... GustavoR. Gonzalez...... ErnestoPerez Balladares PapuaNew Guinea ...... JohnRumet Kaputin ...... MekereMorauta Paraguay...... CesarRomeo Acosta ...... AugustoColman V. Peru ...... JavierSilva Ruete ...... JoseLoayza Am6zquita Philippines ...... CesarE. A. Virata ...... JaimeC. Laya Portugal1 ...... AnibalAnt6nio Cavaco Silva ... JoseAnt6nio da Silveira Godinho QatarI ...... AbdulAziz Al-Thani . . . MadhatAbdul Latif Masud RomaniaI ...... PaulNiculescu-Mizil ...... GheorghePopescu Rwanda...... Denis Ntirugirimbabazi ...... Jean-DamasceneMunyarukiko St. LuciaI ...... AllanLouisy . . . GeorgeC. Girard SaoTome and Principe ...... HenriquePinto da Costa . . . VictorManuel Lopes Correia SaudiArabia ...... MohamedAbalkhail ...... KhalidAl Gosaibi Senegal ...... LouisAlexandrenne ...... MatarSeye SierraLeone ...... FrancisM. Minah ...... J. Amara-Bangali SingaporeI ...... HonSui Sen... J. Y. M. Pillay SolomonIslands I...... BenedictKinika ...... A. V. Hughes Somalia ...... AbdullahiAhmed Addou ...... OmarAhmed Omer SouthAfrica ...... T.W. deJongh . . .0__ .... G.. P. C.de Kock Spain ...... JaimeGarcia Ahioveros . . . JoseRam6n Alvarez Rendueles Sri Lanka ...... Ronniede Mel...... W. M. Tilakaratna Sudan...... NasrEldin Mustafa ...... MirghaniMohamed Ahmed 2 SurinameK ... H. R. Neyhorst...... A. J. Zunder Swaziland...... V. E.Sikhondze ...... TimothyM. J.Zwane Sweden ...... GdstaBohman ...... HansBlix SyrianArab Republic ...... HamdiAl-Sakka ...... MohamadMouaffac Tarabishi 2 Tanzania...... AmirH. Jamal...... FulgenceMichael Kazaura Thailand . .Amnuay Viravan ... ChanchaiLeetavorn Togo . .Koudjolou Dogo...... E. K. Agbobli Trinidadand Tobago ...... EricWilliams ...... F. Barsotti Tunisia ...... MansourMoalla ...... SalahM'Barka Turkey ...... smetSezgin . . .Nazif Kocayusufpasaoglu Uganda ...... LawrenceSebalu . . . EineaB. K. Ntate UnitedArab Emirates I ...... HamdanBin Rashid Al Maktoum ... AhmedHumaid Al-Tayer UnitedKingdom ...... GordonRichardson ...... Sir DouglasWass UnitedStates ...... G.William Miller ...... RichardN. Cooper UpperVolta . .Georges Sanogoh ... PierreTahita Uruguay . .Valentin Arismendi ... JuanJose Anichini Venezuela' . .Ricardo Martinez . . __...... LeopoldoDiaz Bruzual VietNam ...... TranDuong ...... LeHoang WesternSamoa . .Vaovasamanaia R.P. Phillips...... Maiavalulai Toma YemenArab Republic ...... Ali LotfAl-Thour ...... Ali A. Khoder Yemen,People's Democratic Republic of...... FaragBin Ghanem . . .Yassin Nasser Yugoslavia...... PetarKostic ...... GavraPopovic Zaire...... Bofossaw'Amb'ea Nkoso ...... BazundamaMbandanu Luzumbulu Zambia ...... KebbyS. K. Musokotwane...... LloydC. Sichilongo Memberof the Bankonly. 2 Appointmenteffective after June 30, 1980. Bank/lIDA Appendices 197

Executive Directors and Alternates Appendix 7 of the Bank and IDA June30, 1980 Total votes ExecutiveDirector Alternate Castingvotes of Bank IDA Appointed Colbert1. King...... DavidS. King...... UnitedStates ...... 70,833 769,139 J3hnAnson ...... DerekF. Smith...... UnitedKingdom ...... 26,250 263,576 EberhardKurth ...... Hans-DieterHanfland ...... Germany(Federal Republic of) ...... _ 17,862 236,831 PaulMentre de Loye...... MartheParent ...... France...... 17,817 138,669 Seiji Morioka...... Kimiaki Nakajima...... Japan...... 17,789 201,476 Elected SaidE. El-Naggar...... SalehA. Al-Hegelan...... Bahrain,'Egypt(Arab Republic of), Iraq, Jordan, (Arab Republicof Egypt) (SaudiArabia) Kuwait,Lebanon, Maldives, Pakistan, Qatar,' SaudiArabia, Syrian Arab Republic,United Arab Emirates,'Yemen Arab Republic.16,056 188,952 Earl G. Drake...... RenoJ. Brown...... Bahamas,'Barbados, 1 Canada,Grenada, Guyana, (Canada) (Bahamas) Ireland, Jamaica.15,054 164,508 M. Narasimham...... M. Syeduz-Zaman...... Bangladesh,India, Sri Lanka...... 14,152 157,319 (India) (Bangladesh) Aithony IJ. A. Looijen...... MiodragM. Stojiljkovi6..... Cyprus,Israel, Netherlands,Romania,' (Netherlands) (Yugoslavia) Yugoslavia.13,114 109,686 Jacquesde Groote...... HerbertSutter ...... Austria,Belgium, Luxembourg, Turkey.12,547 96,032 (Belgium) (Austria) EduardoMayobre ...... RobertoMayorga-Cortes ..... CostaRica, El Salvador,Guatemala, Haiti, (Venezuela) (Nicaragua) Honduras,Mexico, Panama, Peru, Spain, Suriname,'Venezuela .12,070 95,884 HansLundstrom ...... ValgeirArsaelsson 2. Denmark,Finland, Iceland, Norway, Sweden ...... 12,049 184,338 (Sweden) (Iceland) GiorgioRota ...... RodrigoM. Guimaraes...... Greece,Italy, Portugal1 ...... 11,544 84,198 ,Italy) (Portugal) J. W. Keany..... Sang-ChulSuh ...... Australia,Korea (Republic of), NewZealand, ('Australia) (Republicof Korea) PapuaNew Guinea,Solomon Islands,' WesternSaoa .11,395 91,232 ZainAzraai ..... Aung Pe... Burma, Fiji, Indonesia,Lao People's Democratic (Malaysia) (Burma) Republic,Malaysia, Nepal, Singapore,' Thailand, Viet Nam.11,050 109,438 AustinH. Madinga...... Y. S. M. Abdulai...... Botswana,Burundi, EquatorialGuinea, Ethiopia, (Malawi) (Nigeria) The Gambia,Guinea, Kenya, Lesotho, Liberia, Malawi,Nigeria, Sierra Leone, Sudan, Swaziland, Tanzania,Trinidad and Tobago,Uganda, Zambia... 9,766 141,930 ArmandRazafindrabe ...... NieophoreSoglo ...... Benin,Cameroon, Central African Republic,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 PlacidoL. Mapa,Jr ...... GuillermoConstain ...... Brazil, Colombia,Dominican Republic, Ecuador, (Philippines) (Colombia) Philippines...... 8,416 103,996 Moicef Belkhodja...... Omar Kabbaj...... Afghanistan,Algeria, Ghana, Iran, Libya, Morocco, (Tunisia) (Morocco) Oman,Tunisia, Yemen (People's Democratic Republicof) ...... 7...... 7,936 99,243 AlbertoSola . .... DavidBlanco ...... Argentina,Bolivia, Chile,Paraguay, Uruguay 1 ..... 7,872 95,122 (Argentina) (Bolivia) In additionto the ExecutiveDirectors and Alternatesshown in the foregoinglist, the followingalso servedafter June30, 1979: Exe utiveDirector Endof periodof service AlternateDirector Endof periodof service SusumuMurayama ...... July 10,1979 William P. Dixon...... August19, 1979 (Japan) (UnitedStates) R. A. Johnston...... July 22,1979 Pierre-HenriCassou ...... August31, 1979 (Australia) (France) EdwardR. Fried...... October31, 1979 EdwardM. Agostini...... October31, 1979 (UnitedStates) (Guyana) William S. Ryrie...... January2,1980 OscarG. Espinosa...... October31, 1979 (United Kingdom) (Peru) Ant6niodos SantosLabisa .October 31, 1979 (Portugal) RonaldF. R. Deare. November4, 1979 (United Kingdom) NOTE:China(7,750 votes in IBRDand 91,311 votes in IDA),Democratic Kampuchea (464 votes in IBRDand 7,826votes in IDA),Nicaragua(341 votes in IBRDand 8,124 votes in IDA) andSouth Africa (3,713 votesin IBRD and l2,445 votesin IDA) did not participatein the 1978Regular Election of Execu- tive Directors.Cape Verde (266 votes in IBRDand 516votes in IDA) and St. Lucia(279 votes in IBRD)became members after that Election. I Mernberof the Bank only. 2 Hasresigned effective June 30, 1980;to be succeededby OleLeonsmann Poulsen (Denmark). 198 Bank/lIDA Appendices

Officers and Department Directors Appendix 8 of the Bank and IDA July1, 1980 President ...... RobertS. McNamara SeniorVice President ...... I . P.M. Cargill RegionalVice President, Latin America and the Caribbean ...... NicolasArdito Barletta VicePresident, Projects Staff ...... WarrenC. Baum VicePresident, External Relations ...... MunirP. Benjenk VicePresident ...... BernardChadenet RegionalVice President, Europe, Middle East, and North Africa ...... RogerChaufournier VicePresident, Development Policy ...... HollisB. Chenery RegionalVice President, South Asia ...... W. DavidHopper RegionalVice President, East Asia and Pacific...... S. ShahidHusain VicePresident and General Counsel ...... LesterNurick I VicePresident, Administration, Organization, Personnel Management ...... MartijnJ. W. M. Paijmans VicePresident, Finance ...... MoeenA. Qureshi VicePresident and Treasurer ...... EugeneH. Rotberg VicePresident, Operations ...... ErnestStern VicePresident and Secretary ...... TimothyT. Thahane RegionalVice President, Western Africa...... WilfriedP. Thalwitz2 RegionalVice President, Eastern Africa ...... Willi A. Wapenhans Director-General,Operations Evaluation ...... MervynL. Weiner Director,Programming and Budgeting Department ...... K. GeorgGabriel Controller...... MasayaHattori Director,Projects Department, Eastern Africa ...... HansA. Adler Director,Country Programs Department 1, WesternAfrica...... BilselAlisbah Director,Country Programs Department il, Europe,Middle East, and NorthAfrica ...... MauriceP. Bart Director,International Relations Department ...... ShirleyBoskey Director,Urban Projects Department...... AnthonyA. Churchill Director,Compensation Department...... R. A. Clarke Director,Country Programs Department 11, Western Africa ...... Xavierde la Renaudiere Director,Development Research Center ...... JohnH. Duloy Director,Population, Health, and Nutrition Department ...... JohnR. Evans Director,Industrial Projects Department ...... HansFuchs AssociateGeneral Counsel ...... HeribertGolsong Director,Country Programs Department 11, Eastern Africa ...... AndreGu6 Director,Education Department ...... Aklilu Habte Director,Policy Planning and Program Review Department ...... Mahbubul Haq Director,Treasury Operations ...... HansC. Hittmair Director,Economic Analysis and Projections Department ...... HelenHughes Director,Country Programs Department, East Asia and Pacific ...... EdwardV. K. Jaycox Director,Operations Evaluation Department ...... ShivS. Kapur Director,Country Programs Department I, Europe, Middle East, and North Africa ...... Attila Karaosmanoglu Director,Development Economics Department ...... BenjaminB. King Director,Projects Department, East Asia and Pacific...... SyedSalar Kirmani Director,Projects Department, Europe, Middle East, and North Africa ...... A. DavidKnox Director,Country Programs Department I, Eastern Africa...... JochenKraske Director,Country Programs Department I, Latin America and the Caribbean ...... EugenioF. Lari EnvironmentalAdviser, Officer of EnvironmentalAffairs ...... JamesA. Lee ExecutiveSecretary, Consultative Group on International Agricultural Research ...... MichaelL. Lejeune Director,Country Programs Department 11, Latin America and the Caribbean...... EnriqueLerdau Director,Information and Public Affairs Department ...... JohnE. Merriam Director,Economic Development Institute ...... Ajit Mozoomdar Director,Computing Activities Department ...... MervinE. Muller Director,Tokyo Office ...... SeigoNozaki Director,Projects Department, South Asia ...... RobertPicciotto Director,Personnel Management Department ...... HansPollan Director,Projects Department, Western Africa ...... LouisY. Pouliquen2 Director,Projects Advisory Staff ...... VisvanathanRajagopalan Director,Internal Auditing Department ...... LawrenceN. Rapley Director,Organization Planning Department ...... BruceW. Rohrbacher Director,Energy Department ...... YvesRovani Director,European Office ...... RainerB. Steckhan Director,Industrial Development and Finance Department ...... StokesM. Tolbert Director,Administrative Services Department ...... JamesE. Twining, Jr. Director,Projects Department, Latin America and the Caribbean ...... SuitbertusM. L. vander Meer Director,Projects Staff ...... HermanG. van der Tak Director,Development Policy ...... E. BevanWaide Director,Country Programs Department, South Asia ...... MichaelH. Wiehen Director,Transportation, Water, and Telecommunications Department ...... ChristopherR. Willoughby Director,Agriculture and Rural Development Department ...... MontagueYudelman Will retire on October1. 1980;to be succeededby HeribertGolsong. Acting. Bank/lIDA Appendices 199

World Bank Offices Appendix 9

.)uly 1, 1980 lieadquarters:1818 H Street,N.W., Washington, D.C. 20433, U.S.A. NewYork Office JulianP. Grenfell UnitedNations SpecialRepresentative for Room2435, Secretariat Building UnitedNations Organizations NewYork, N.Y. 10017, U.S.A. EuropeanOffice RainerB. Steckhan 66,avenue d'lena Director 75116Paris, France LondonOffice NewZealand House, Haymarket London,SWI Y4TE, England GenevaOffice MahmudBurney WorldBank WorldBank Representative to c/o WIPOP.O. Box 18 UNOrganizations-Geneva 34 Chemindes Colombettes 1211Geneva 20, Switzerland TokyoOffice SeigoNozaki KokusaiBuilding Director 1-1, Marunouchi3-chome Chiyoda-ku,Tokyo 100, Japan RegionalMission RobertJ. Dewar' ExtelcomsHouse in EasternAfrica Director HaileSelassie Avenue Nairobi,Kenya (mailingaddress: P.O. Box 30577) RegionalMission SergeGuetta ImmeubleShell in WesternAfrica Chief 64 AvenueLamblin Abidjan,Ivory Coast (mailingaddress: 01 B.P.1850) Ri.gionalMission Hendrikvan der Heijden UdomVidhya Building inThailand Chief 956Rama IV Road,Sala Daeng Bangkok5, Thailand Aighanistan c/o UNDPResident Representative P.O.Box 5 Kabul,Afghanistan Bzngladesh AlexanderStorrar WorldBank Resident Mission Chief 222New Eskaton Road Dacca,Bangladesh (mailingaddress: G.P.O. Box 97) Bolivia RolandoArrivillaga BancoMundial ResidentRepresentative EdificioBanco Nacional de Bolivia(41 Piso) AvenidaCamacho esq. Calle Col6n La Paz,Bolivia (mailingaddress: Casilla 8692) Burundi JeromeF. Chevallier WorldBank ResidentRepresentative Villasdes Chefs d'Etat No. 10 Bujumbura,Burundi (mailingaddress: B.P. 2637) Cameroon RaymondRabeharisoa WorldBank Resident Mission ResidentRepresentative ImmeubleConcorde AngleAvenue El HadjAhmadou Ahidjo et AvenueJ. F. Kennedy Yaounde,Cameroon (mailingaddress: B.P. 1128) Colombia AlfredoD. Gutierrez BancoMundial ResidentRepresentative Edificio"Aseguradora del Valle" Carrera10 No. 24-55 (Piso 17) BogotaD.E., Colombia (mailingaddress: Apartado Aereo 10229) Ethiopia EilertJ. deJong WorldBank ResidentRepresentative I.B.T.E. NewTelecommunications Building(First Floor), Churchill Road AddisAbaba, Ethiopia (mailingaddress: I.B.R.D. Mission, P.O.Box 5515)

Ghana NadarajaRamachandran 2 WorldBank ResidentRepresentative c/o RoyalGuardian Exchange AssuranceBuilding, Head Office HighStreet Accra,Ghana (mailingaddress: P.O. Box M27)

Acting. G. David Looshas beenappointed Director, effectiveSeptember 1, 1980. (continued) Appointmenteftective mid-August, 1980. 200 Bank/lIDA Appendices

WorldBank Offices(Continued) Appendix9

July1, 1980 India Jean-DavidRoulet WorldBank Resident Mission Chief P.O.Box 416 NewDelhi, India Indonesia RussellJ. Cheetham WorldBank Resident Staff in Indonesia Director ArthalokaBuilding(gth floor) 2 JalanJendral Sudirman Jakarta,Indonesia (mailingaddress: P.O. Box 324/J KT) Kenya HillegondaJ. Goris3 WorldBank Resident Mission ResidentRepresentative ExtelcomsHouse, Haile Selassie Avenue Nairobi,Kenya (mailingaddress: P.O. Box 30577) Mali MichaelJ. Furst WorldBank Resident Mission ResidentRepresentative Quartierdu Pont,rue Square Lumumba Bamako,Mali (mailingaddress: B.P. 1864) Nepal RichardG. Abbott WorldBank (IBRD) ResidentRepresentative R. N. A. C. Building(First Floor) Kathmandu,Nepal (mailingaddress: P.O. Box 798) Nigeria RonaldH. S. Fennell WorldBank Resident Mission ResidentRepresentative 30 MacarthyStreet Lagos,Nigeria (mailingaddress: P.O. Box 127) Pakistan WolfgangE. Siebeck WorldBank Resident Mission Chief P.O.Box 1025 Islamabad,Pakistan Peru ElkynChaparro WorldBank Resident Mission ResidentRepresentative AvenidaCentral No. 643 (10 Piso) SanIsidro, Lima, Peru (mailingaddress: Apartado 4480) Rwanda JeromeF. Chevallier WorldBank ResidentRepresentative P.O.Box 609 Kigali,Rwanda SaudiArabia Guyde Lusignan WorldBank Resident Mission Director Riyadh,Saudi Arabia (mailingaddress: P.O. Box 5900) Senegal JonathanC. Brown WorldBank Resident Mission ResidentRepresentative ImmeubleS. D. i. H. 3, Placede 'l nd6pendance Dakar,Senegal (mailingaddress: B.P. 3296) Somalia Ali N. Memon WorldBank ResidentRepresentative c/o SomaliCommercial & Savings BankBuilding (4th Floor) Mogadishu,Somalia (mailingaddress: P.O. Box 1825) Sri Lanka DavidThomas WorldBank ResidentRepresentative People'sBank Head Office(10th Floor) Colombo2, Sri Lanka (mailingaddress: P.O. Box 1761) Sudan ShawkiFarag WorldBank ResidentRepresentative 28 Block2H, Baladia Street Khartoum,Sudan (mailingaddress: P.O. Box 2211) Tanzania RobertH. Nooter WorldBank ResidentRepresentative N. 1.C. Building(7thFloor, B) Dares Salaam, Tanzania (mailingaddress: P.O. Box 2054) UpperVolta FlorentAgueh WorldBank Resident Mission ResidentRepresentative AvenueMonseigneur Th6venoud Ouagadougou,Upper Volta (mailingaddress: B.P. 622) Zaire RobertoChadwick WorldBank ResidentRepresentative BuildingUZB, Avenue des Aviateurs Kinshasa1, Republicof Zaire (mailingaddress: P.O. Box 14816) Zambia M. AzizulJalil WorldBank Mission in Zambia ResidentRepresentative KulimaTower (13th Floor), Katunjila Road Lusaka,Zambia (mailingaddress: P.O. Box 4410)

3 Acting. G. David Looshas been appointedResident Representative, effective September1, 1980.

World Bank Headquarters: 1818H Street, N.W. Washington, D.C. 20433, U.S.A. Telephone: (202) 477-1234 Cable address: INTBAFRAD WASHINGTONDC

EuropeanOffice: 66, avenue d'Iena 75116Paris, France TokyoOffice: Kokusai Building 1-1 Marunouchi 3-chome Chiyoda-ku, Tokyo 100,Japan