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THE WORLD BANK, WASHXINGTON, D.C. Photo Credits Cover photographs: Curt Carnernark and Ray Witlin Re,ional photographs: Cult Carnernark and FranickCharton Design Book Desigin: Joyce Petruzzelli, Graphic Design UInit, The World Bank Group Cover Design: Briani Noves, The Magazine Group Typographv: Graphic Design Unit, The World Bank Group Editorial Peter C. MuLIcie, Office of the Publisher, The World Banlk Group

ISSN: (0)252-2942 ISBN: 0-8213-2884-)

2 THEW(Ri l) BANKANNI Al. RrP(RT1995 This Annutlal Report, which covers the period July 1, 1 994, to June 30, 1995, has been prepared by the executive directors of both the International Bank for Reconstruction and Development (IBRD) anid the International Development Associationi (IDA)in accordanice with the respective by-laws of the two institutions. lames D. Wolfensohn, president of the IBRD and IDA and chairman of the boards of executive directors, has submitted this Report, together with accompanying administrative budgets and audited finanicial statements, to the board of governors. The executive directors would like to take this opportunity to render tribute to Lewis T Preston and express appreciation for the outstanding leadership he provided to the World Bank Group from September 1, 1991 until his untimely death on May 4, 1995. During that period the Bank's membership became nearly universal, and the challenges facinig the Bank Group were greater than ever. They acknowledge in particular Mr. Preston's role in reemphasizinig the reduction of poverty in the developing world as the Bank's central objective, in promoting investment in people, in enhancinig the quality of the Bank Group's assistance to its member counitries, in developing partnerships with the public and private sectors, and in making the Bank a more open, flexible institution, better equipped to respond to the vast challenges its diverse membership will face in the years to come. Annual reports for the International Finanice Corporation (lFC),the Multilateral Guaranitee Agency (N11G.A), and the InterniationalCentre for Settlement of Investment Disputes (IwsIm)are published separately.

Executive Directors Alternates

Ibrahim A. Al-Assaf Ibrahim M. Al-Mofleh Khalid NI. Al-Saad Mohamed W. Hosny Marc-Antoine Autheman Arnaud Chneiweiss Ali Bourhanie Luc-Abdi Aden Anidrei Bugrov Eugenie Miagkov Marcos Cararnuru de Paiva Armanldo Montenegr-o Hluw Evans David Stantoni Fritz Fisclher Erika Wagenhcfer Jean-Daniel Gerber lan Sulmicki Leonard Good W'instoin Cox Enzo Grilli Helena Cordeiro Eveline Her'kens Sergiy Kulyk Ruth Jacoby Jorgen Varder Bimal Jalan Nluslfiqur Rahman Abdul Karim Lodhi Kacim Brachemi Leonard K. Mseka Joaquini R. Carvalho Peter WE. Nicholl Christoplher Y. Legg Atsuo Nishihara Rintaro Tamaki Julio Nogues Carlos Steneri Jan PiercvN Michael Marek Walter Rill Philippe Peeters Suswan Pasugswad Khin Ohn Thant Jorge Terrazas Roberto Jinienez-Ortiz Zhang Shengmnani Zhu Guangyao

August 1, 1995

3 The World Bank, which to each member's quota in the their balance of payments consists of the Interniational INmF,which is designed to re- than IRRD loans. IDA's assistanice Bank for ReconstruLction and flect the country's relative is concentrated on1the very Development (@1RD)and the economic strength. poor countries-mainly those International Development The 11RD makes loans only with an annual per capita Association1 (IDA), has one cen- to creditworthy borrowers. gross national product of iess tral purpose: to promote eco- Assistance is provided only to than $696 (in 1993 U.S. dol- nomic and social progress in those projects that promise lars). By this criterion, about developing nations by helping high real rates of economic re- sixty countries are eligible. raise productivity so that their turn to the country. As a mat- Membership in IDA is open people may live a better and ter of policy, the IBRD does not to all members of the IR, fuller life. This is also the aim reschedule payments, and it and 158 have joined. The of the International Finance has suffered no losses on the funds lent by IDA come mostly Corporation-whlich works loans it has made. It has in the form of contributions closely with private investors earned a net income every from its richer members, al- from around the world and year since 1948. thoughl some developing invests in commercial enter- The IBRD obtains most of its countries contribute to IDA, as prises in developing coun- funds through medium and well. IDA's resources have also tries-and the Multilateral In- long-term borrowings in the been augmented by frequent vestment Guarantee Agency capital markets of Europe, transfers from the net earninigs (MIGA)-which was established Japan, and the United States. of the BR). to encourage direct foreign in- It also borrows funds at mar- IDA credits are made only to vestment in developing coun- ket-based rates from central governments. They have to be tries bv protecting investors banks and other governmenit repaid over a period of thirty- from noncommercial risk. institutions. The IBRD'S solid five to forty years. They carry Collectively, the World Bank, standilng in the markets is no interest, but there is an an- the IFC, and NuGIAare known as based upon the combination nual service charge of 0.5 per- the World Bank Group. of conservative lendinig poli- cent on the disbursed amount Of the four institutions, the cies, strong financial backing of each credit. Although IDA is IBRD, established in 1945, is by its members, and prudent legally and finaincially distinct the oldest and largest. The financial management. frormithe IBRD, it shares the IBRD is ownied by the govern- Apart from borrowings, sig- same staff, and the projects it ments of 17S countries that nificant amounts also come assists have to meet the same have subscribed to its capital. from the IBRD'S paid-in capital, criteria as do projects sup- Under its Articles of Agree- from its retained earninigs, and ported by the IBRD. ment, only countries that are from the flow of repayments The success of the Bank's members of the International on its loans. operations depends upon the Monetary Fund (INIF) can be The Initerniational Develop- trust it has establislhed with considered for membership ment Association was estab- borrowers, and this trust is in the IBRD. Subscriptions by lished in 1960 to provide as- based on the experience and member countries to the capi- sistance to the poorer devel- techlnical skills the Bank has tal stock of the IBRD are related opilng countries on1terms that demonstrated over the years would bear less heavily on1

4 THE WORED BANK ANN[ IAI REPORT 1 993 in working wvithits member developing creatinig a responsive investment climate and in- countries, formationi base to guide and encourage the flow Under its Articles of Agreemenit, the Bank of capital. cannot allow itself to be influLencedby the po- Ml(;A is also an entity separate from the World litical clharacter of a member couLtry: Only Bank. Like the IFC,' it has its own operating and ecoiionoic considerations are relevant. It also legal staff but draiws upon the Bank for adminis- seeks to enstire that the developinig couLntry gets trative and other services. NIIGA currently has ftill value for the money it borrows. Bank assis- 128 members. tance, therefore, is uLitied in that it may be used to purcliase goods and services from any member coun1try. The C xwasestablished in 1 956. Its functioni is to assist the economic developimienit of developing coulntries by promoting growth in the private sector of their econiomies and helping to mobilize domestic and foreigin capital for this purpose. One hunidred sixty-five countries are members of the FU. Iegally and financially, the IFCand the World Bank are separate entities. The irc has its own operating and legal staff bUt draws upoin the Bank for administrative anid other services. In its project-filnancinig role, the IFc provides loans and makes equity investmienits. Unlike most multilateral institutionis, the iFw does not accept governm11enitguarantees for its finaniciig. Like a private finanicial institution, the ivu prices its finance anid services, to the extenit possible, in line with the market, while taking into ac- coUlnt the cost of its funds, and seeks profitable returils. Thle FI( shares full projects risks wvithits pa rtn ers. xiic.A,the newest memilber of the World Bank Group, was established in 1988. It has as its prinicipal responsibility the promotioni of investment for econiomic developmenit in memlber counitries through guarantees to foreign investors against losses caused by noniconimercial risks and through advisory and consultative services to member-s countries to assist thenm in

5 'I'FIL'VV()i.l) L\NK AN'KNI',\I. Ri .'()I.i 1i5

(A) ,X\, , s

LETTER OF TRANSMITTAL 3

THE WORLD BANK,THE IFC,AND MIGA 4

OVERVIEW OF WORLD BANK ACTIVITIES IN FISCAL 1995 9

SECTION ONE THE EXECUTIVE BOARD 15 Shaping Policy 15 Accountability and Development Effectiveness 15 The Private Sector 16 Appointing a New President 17 SECTION TWO MAJOR WORLD BANK PROGRAMS:FISCAL YEAR 1995 18 Human Resources Development 18 Environmentally Sustainable Development 24 Private Sector Development 29 SECTION THREE WORLD BANK OPERATIONS: FISCALYEAR 1995 36 Commitments 36 Disbursements 37 Technical Assistance 38 Cofinancing 39 Portfolio Performance and Management 42 Operations Evaluation 44 Implementation of the Bank's Disclosure Policy 45 The Inspection Panel Becomes Operational 46 50 YEARS OF WORLD BANK OPERATIONAL HIGHLIGHTS 47

SECTION FOUR 1995 REGIONAL PERSPECTIVES 55 Africa 55 East Asia and Pacific 65 South Asia 72 Europe and Central Asia 79 Latin America and the Caribbean 88 Middle East and North Africa 97

6 THE WORLDBANK ANNUAL REPORT 1995 SUMMARIESOF PROJECTSAPPROVED FOR IBRD AND IDA ASSISTANCEIN FISCAL 1995 104

SECTION FIVE OTHER WORLD BANK GROUP ACTIVITIES 124 Economic Development Institute 124 Research at the W1orldBank 125 The Adminiistrative Budget and lWorld Bank Administration 126 International Finance Corporation (IFC) 128 Multilateral Investment Guarantee Agency (MIGA) 129 International Centre for Settlement of Investment Disputes (ICSID) 130 SECTION SIX WORLD BANK FINANCES 131 IBRD Financial Highlights 131 Financial Policies 131 Loans 132 Liquid Assets Mlanagemnent 132 Borrowings and Liability Management 133 Capital 136 IDA Finances 136 FINANCIAL STATEMENTSOF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 139

SPECIALPURPOSE FINANCIAL STATEMENTSOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION AND SPECIAL FUND 167

IBRD/IDA APPENDICES I Governors and Alternates of the Wt'orldBank 190 2 Executive Directors and Alterntates oj'the W1'orldBank and Their V'oting Pou'er 195 3 Officers and Department Directors of'the W1orldBank 198 4 Of rices of the W1'orldBank 201 5 Current IBRD IDA, and Blend Borrowers 205

CO\N I .NTS7 IBRD/IDA APPENDICES (conitinued)

6 World Bank Budget by Expense Category and Administrative Program, Fiscal Years 1993-96 207 7 IBRD and IDA Payments to Supplying Active Borrowing Countries for Foreign and Local Procurement in Fiscal 1995 208 8 IBRD and IDA Payments to Supplying Countries fbr Foreign Procurement 209 9 IBRD and IDA Payments Supplying Countries for Foreign Procurement, by Description of Goods, Fiscal 1995 211 10 IBRD and IDA Foreign Disbursements, by Description of Goods, for Investment Lending, Fiscal 1993-95 213 11 Lou- and Middle-Income Economies: Growth of GDP and GDP Per Capita, 1983-94 214 Long-term Financial Flouws to Developing Countries, 1987-94 214 Low- and Middle-Income Economies: Long-term Debt and Debt Service, Selected Years, 1989-94 215 Selected Trade-performance Indicators, 1971-94 216 Commodity Prices, 1987-94 217 12 Development Committee Communiques, Fiscal Year 1995 218

INDEX 222

BOXES Guiding Principles in a Changing W1;orld 10 Discussions Begun on the IDA-i 1 Replenishment 11 2-1 A Consultative Group to Assist the Poorest 24 2-2 Into the Guarantee Mainstream 30 2-3 FIAS: Fostering Foreign Funding 33 4-1 A Continent in Transition 56 4-2 Emergencv Assistance: The Cases of Burundi and Rwanda 58 4-3 Confronting the Health Care Crisis 83 4-4 Emergency Response: Dealing with the Oil Spill in Komi 86 6-1 Review of the Fiscal 1994 IDA Program 136

S Ti iv WX'RIr) BANK A\NNI Al Rii'1 I) TI111 %V () R I iH,\ IrlilIi 1 f FC, .\NI X.\i, A

The World Bank, which to each member's quota in the their balance of payments consists of the International IMF, which is designed to re- than [BRD loans. IDA's assistance Bank for Reconstruction and flect the country's relative is concentrated on the very Development (IBRD) and the economic strength. poor countries-mainly those International Development The [BRD makes loans only with an annual per capita Association (IDA), has one cen- to creditworthy borrowers. gross national product of less tral purpose: to promote eco- Assistance is provided only to than $696 (in 1993 U.S. dol- nomic and social progress in those projects that promise lars). By this criterion, about developing nations by helping high real rates of economic re- sixty countries are eligible. raise productivity so that their turn to the country. As a mat- Membership in IDA is open people may live a better and ter of policy,the IBRD does not to all members of the IBRD, fuller life. This is also the aim reschedule payments, and it and 158 have joined. The of the International Finance has suffered no losses on the funds lent by IDA come mostly Corporation-which works loans it has made. It has in the form of contributions closely with private investors earned a net income every from its richer members, al- from around the world and year since 1948. though some developing invests in commercial enter- The IBRD obtains most of its countries contribute to [DA, as prises in developing coun- funds through medium and well. IDA'S resources have also tries-and the Multilateral In- long-term borrowings in the been augmented by frequent vestment Guarantee Agency capital markets of Europe, transfers from the net earnings (MIGA)-which was established Japan, and the United States. of the IBRD. to encourage direct foreign in- It also borrows funds at mar- IDA credits are made only to vestment in developing coun- ket-based rates from central governments. They have to be tries by protecting investors banks and other government repaid over a period of thirty- from noncommercial risk. institutions. The IBRD'S solid five to forty years.They carry Collectively, the World Bank, standing in the markets is no interest, but there is an an- the IFC, and MIGA are known as based upon the combination nual service charge of 0.5 per- the World Bank Group. of conservative lending poli- cent on the disbursed amount Of the four institutions, the cies, strong financial backing of each credit. Although IDA is IBRD, established in 1945, is by its members, and prudent legally and financiallydistinct the oldest and largest. The financial management. from the IBRD, it shares the IBRD is owned by the govern- Apart from borrowings, sig- same staff, and the projects it ments of 178 countries that nificant amounts also come assists have to meet the same have subscribed to its capital. from the IBRD'S paid-in capital, criteria as do projects sup- Under its Articles of Agree- from its retained earnings,and ported by the IBRD. ment, only countries that are from the flow of repayments The success of the Bank's members of the International on its loans. operations depends upon the Monetary Fund (IMF) can be The International Develop- trust it has established with considered for membership ment Association was estab- borrowers, and this trust is in the IBRD. Subscriptions by lished in 1960 to provide as- based on the experience and member countries to the capi- sistance to the poorer devel- technical skills the Bank has tal stock of the IBRD are related oping countries on terms that demonstrated over the years would bear less heavily on

4 THE WORLD BANKANNUAL REPORT 1995 GUIDING PRINCIPLES IN A CHANGING WORLD

The Bank Group can continueto serveits mem- In hisaddress to the Bank'sgovernors, Mr Preston bers effectivelyin a rapidly changingworld only if it said thatsix principleswould guide the Bank'sresponse becomesmore flexible, cost-conscious, and efficient, to a changingworld: greater selectivity ("a moresen- Bankpresident Lewis Prestontold the institution's siblesharing of taskswithin the internationalsystem is governorsin October 1994 during the annual meet- required");increased collaboration with all theBank's ingsof the BrettonWoods institutions. partners,from theprivate sector to nongovernmentalin- The needfor the Bank to be flexiblewas also on stitutions;deepening client relationships C'country own- the mindsof most of the thirty-fourspeakers at a ershipof policies and projectsis crucial");measuring Madrid conference-7FiftyYears after Bretton successby results;cost effectiveness; and excelentfinan- Woods:The Future of the IMF and the World cial management. Bank"-which was held on the eve of the annual The unfinisheddevelopment agenda remains enor- meetings,and whichbrought together financial offi- mous-and so, too,is the needfor an institutionthat cials,academics, think tank experts,as well as staff has fifty years of developmentexperience, a closere- from the Bank and the IMF. A remarkby Manmohan lationshipwith virtually every developingcountry, Singh,India's ministerof finance, was typical:"Insti- and a committedstaff of developmentprofessionals. tutionsmust necessarilyadapt to changingcircum- And that was perhaps the clearestmessage to emerge stances,and the BrettonWoods institutions are no from the meetings:The needfor a flexible,efficient exceptionto thisrule." Bank Group is greatertoday than ever before.

flows into developing counltries in 1994 are esti- 'economic miracle" in East Asia, Latin America mated at $80 billion, an increase of 13 percent has largely overcome its debt crisis, and substan- over 1993. As in the past, a few countr-ies re- tial gains in health and literacy have taken place ceived the bulk of the flows, with China ac- in Africa. counting for almost 38 percent of the total. Within this diversified global context, it Direct investment often comes in tandemii with is vitally important that the Bank be a cost- transfers of know-how, market access for prod- effective, responsive, and flexible institution ucts and services, and other developmenit able to deliver timely, high quality advice, sup- ingredienits. ported bv financinig for the implemenitation of As well as adapting to the new means by programs and projects. which development is being financed, the Bank also faces serious questionisin the minds of the publics and their parliaments in its member 1. DuriSCalI 95, spcIal task force vas created bv countries. There are budgetary pressures that thie Development Committee to assessthe implications of have impacted official aid flows, forcing diffi- economicchalnlge orn the developmentpriorities, instru- cult choices between bilateral and multilater-al menits,optrations, and maniiagenmenitof five multilateral de%elopment banks arid tc consider whether improvements priorities. Furthermore, part of the conceptual Could.strengthen their impact on the development process. fouincdationiuipon which the case for assistance [he five hanks are the World Bank, the Asiair Development flows has lonig rested is eroding: Some Cottlbt Bank, the African Developmenlt Bairk, the Inter-Amerircan Dcveloprirent Banik and the Europeain Bank for Recon- the purpose of assistance in the wake of the struction anld Development. Cold 'War's end; others doubt that large mUlti- The TlaskForce oni the Role (f the Multilateral Develop- lateral lenders canl ever be effective. mieltnt Bairks, as it is called, will also ealuiate procedures The case for development is compelling and practices for- coordination armrog the mtrltilaterals and other imlemiibers of the development conimUnitv, and however. Over the past five decades, average consider %vhether it is possible trr make arts improvements per capita inconmes in developing countries have On a r-gion1al,cOrultrv. or secto-al basis. more than doubled. The Dot'S of some econo- rhe task for-ce,whiLh is hercled by AbdlatifYoUsefAl- mies have quilltupled. Life expectancv has in- Hamad, director- general and chairmaniof the Arab Funid for Econormic and Social Developmerit, is expected to creased by more than 50 percent. There has preseistits report to the Development Committee toward been a ",,reen revolutioni" in South Asia, an thie enidofcalendalr 1995.

10 THF WORLL' BANK ANNI.A[ RFHORT 1995 In this respect, the support received from the to continue as mor-cand more member coun- Bank's board of governors at the October 1994 tries move to strengthen their private sectors. annual meetings in Madrid was highly encour- Encouraging support was also received for the aging.All shareholders expressed strong interest institutionialchanges that the Bank has under- in the future direction of the Bank Group and taken over the past several years under the lead- strong appreciation for its services. ership of the Bank's late president, Lewis T The first exploratory meeting on the eleventh Preston, and with the guidaniceand advice of replenishment of IDA resources (IDA-I 1), held in the Bank's executive board. Those changes in- Madrid in October 1994, was very construttive. clude the increasinigcouLnatry and client focus of The IDA Deputies reaffirmed their strong sUp- the Bank's work, the changinigcomposition of port for a multilateral approach to assisting the the lending program, the stress on ownership world's poorest countries. Three subsequent and participation by project stakeholders, the meetings of Deputies were held in the first half emphasis on implementation and results on the of 1995 (see accompanying box). Clearly, how- grounld, and the strengthening of the Bank's ever, the fiscal constrainitsthat a number of do- skills Imlix. nors are experiencinigmake it essential that ef- Shareholders also noted with approval how forts be redoubled to cooncludea significant re- much the Bank has changed. For example, it is plenishment of IDA resources, now among the world's largest investors in areas The steadv growth of the IFC has also contin- suclhas educationi,health care, family planninig, ued to receive the strong endorsement from the and environmental protection in the developing Bank Group's shareholders. Requests for IFC world. It is one of the largest investors in pri- support are growxingrapidly-and this is likely vate sector development. It is also among the

DISCUSSIONS BEGUN ON THE IDA-l I REPLENISHMENT Thefour iDA replenishment meetings in fiscal1995 Theissue of debtsustainability for heavilyin- tookplace in an environmentof budgetarypressure for debtedpoor countries gained increasing prominence somedonors and, therefore, ofgrowing uncertainty duringthe year IDADeputies discussed possible ex- aboutthe likely adequacy of thereplenishment. Never- pansionsto IDA'smenu of optionsto assistthese theless,IDA Deputies were in agreementthat poverty countriesand encouragedIDA management to pro- reductionremains IDA's centralgoal and thatlabor-in- poseto the boardof executivedirectors, in the course tensivegrowth and environmentalsustainability are offiscal1996, specificadditional measures for coun- importantsupporting goals. They notedthat IDA'Sbor- triesfacing debt-sustainabilityproblems and a sig- rowers have urgent and substantial needs forfinancing nificant burden of multilateral debt. Throughout the to achieve these goals.Although they expressed serious year IDA monitored the situation of these countries. concern about the funding outlook, they intend to con- As agreed with the executive board, CAS papers for tinue discussionsin the coming months to seek a signifi- these countries are now to include an enhanced cant replenishment level. treatment of their long-term financial prospects and Deputies discussed several aspects of IDA'slending ac- of their debt sustainability. tivities and programs.They endorsed the existing strong Deputies discussed how IDA can further encourage linkage between a country's IDA lending level and its the growth of private sector economic activities in its performance on economicpolicy and project implemen- borrowing countries and they noted the importance tation. They agreed that the country-assistancestrategy of overall economic policies in this context. (CAs) is an important means of ensuring that IDA'Sprin- Deputies also discussed lending projectionsfor the cipal goal ofpoverty reduction is pursued effectivelyand IDA- i period (fiscal 1997-99), noting these projections that it is tailored to specificcountry conditions Deputies are anchored in the assistance strategy for each country. urged that cAs papers draw more explicitly on IDA's They anticipate continued discussions later in the year analytcal work, especially poverty assessments and of the lending projections,the overall size of the replen- public expenditure reviews. ishment, and the burden-sharing among donors.

()\ 1R\1vii\\()I WRI L)BANK ACTIVITIFS I1 WORLD BANK OPERATIONAL AND FINANCIAL OVERVIEW, 1991-95 (millionsof us dollarsunless otherwisenoted; fiscal years)

Item 1991 1992 1993 1994 1995 IBRD Commitments, 16,392 15,156 16,945 14,244 16,853 Disbursements' 11,431 11,666 12,942 10,447 12,672 Net disbursements to current borrowers excluding prepayments' 2,909 2,594 3,289 963 2,238 Net disbursements to all borrowers, including prepayments' 2,109 1,833 2,331 -731 897 Net income 1,200 1,645 1,130 1,051 1,354 Financial return on average investments 9.23% 8.07% 6.09% 3.56% 5.71% New medium- and long-term (MLT) borrowings after swapsb 10,883 11,789 12,676 8,908 9,026 Average cost of new MLT borrowings after swaps 8.06% 6.69% 5.97% 5.03% 6.32% Subscribed capital 139,120 152,248 165,589 170,003 176,438 Statutory lending limit 152,327 168,368 183,312 189,189 198,988 Loans and callable guarantees outstanding 90,648 100,968 104,606 109,468 123,676 As a % of statutory lending limit 60 60 57 58 62 Headroom 61,679 67,400 78,706 79,721 75,312 Liquidity ratio 51% 48% 48% 51% 46% Reserves-to-loans ratio 11.2% 11.7% 11.7% 13.9% 14.3%

IBRD/IDA JointActivities Administrative expenses 964 1,074 1,236 1,389 1,409

IDA Commitments 6,293 6,550 6,752 6,592 5,669 Disbursements 4,549 4,765 4,947 5,532 5,703 Net disbursements 4,274 4,441 4,581 5,110 5,205 Development credits outstanding 45,478 52,304 56,158 62,810 72,032 Accumulated surplus 598 1,363 1,194 1,365 1,995

a. Excludesguarantees and loansto theiFc. b. Includesdisbursements from theSpecial Fund.

rmost 'open' and accouLntable development in- Against this backpround the Bank posted a stitutions in the wor-ld through expansion of its strong record of performance in fiscal 1995. disclosure of information and establishment of Commitments hy the 13RE) amouLnted to $16.9 an indepenidenit Inspection Paniel. billion, up $2.6 billion over the fiscal 1994 to- Governoc!rswere particularly supportive of the tal. A major increase was posted in the Europe steps taken to make the Bank Group more flex- and Central Asia region, whiclh saxv commit- ible, leaner, and cost-conscious. Steps inclulde menits rise from $3.7 billion for forty-two being more selective in what it does---despite projects to $4.5 billion for fifty-eight projects. the increasing demands placed UpoIn it by mem- II)A commitments, of $5., billion, fell by $923 her counitr-ies-and doing more to maximize the million from the previous year, mostly the re- strengths of its partners; enlanicinig budget dis- stilt of a downturni in commitmenits to the cipline ancl cost-consciousniess; and improvinig Africa and South Asia regions. transparenlcy so that problems can be identified-and rectified-as early as possible.

12 Tm Wmii.[) BAI\:IANNVi\I Ri imoRT1995 Assistance to the poorest countries--those IBRDand IDA Lendingto the Poorest with a per capita grossnationlal product of $695 Countries,Fiscal 1986-95 or less (in termiisof 1 993 United States dollars) (USSmillions) totaled $8,485million-$3, 77l0 million from

OFAIM asim .693,5 the iBRI and $4,7115million from IDA (see t1- oviusLuwm 0 ~~~~~~~cornpanuvingfigure).- 1986-90 9.417O Gross disbursements by the ICBRDof $12.7 bil- 4.723,5 lioni wveresUbstantiallx. higher thanl in the previ-

3.409.5 oUs year. io disbursements amouLntedto $5.7 19911m m 9.751,3 billioni,an increase of $1 71 million oxer-the total for fiscal 19(94. 6.341,8 OQl the finiancial side, the iiiR0 borrowed the

3.8 98,4 Clequivalentof $9,026 million in the w\orld's fi-

1992 10.312,8 nanicialmar;kets. Its net income was $1,354 mil- 6.323,4 lion. In additioni, late in the fiscal year, the executive directors of the Banik, movinig to re- 3;3.442,0 spond to the expressed needs of the Bank's cli- 1993 9.799,4 ents, agreed to expand the single currency loan 6.357,4 program beyondits two-year pilot phase. The addition of thlleSinle Currencyloan optioin al- 2.690,4 lows borrovers to select any currency or com- 1994 8.628,9 posite curr-enicy for xvhich there is sutfficienit bor- 5.938,6 roxver demand andl in wvhichthe iCRI) can efficiently borrow from the market. S, A LI.76=9,9~ Efforts conitinued to reduce the debt burden 1995 8.484,8 of severely indebted poor countries through 4.714,9 suppoit for policy rcform, provisionl oFIiA credits, extraordinarl-y IDA allocation for cotintries eng lacd in debt workouts, "Fifth Dimeni- 0 2000 4000 6000 8000 10000 12000 sion allocation5,, fUndinc,gfrom the Debt-reduc-

IBRD *IDA *TOTAL tioni Ficilitv tol- IDA-o111nCouinitries to reduce comme-ciaLl debt, andi teclhniical assistance for Note:The poorestcountries are definedas those witha per capita debt management. incomeof $695 or lessin 1993U.S. dollars. Thl-oughi the Fifth DEimensioniprogram, which is finainced out of DLA reflowvs,additionial ioLx allocationisare providedl to IDA-only cOun1- tries that have outstanding iCRi) debt, are cur- The Bank demonstrated its flexibility and re- renit in their debt service to the IBRD anid IDA, sponsiveness to diverse client needs in a numiLber andc have an I1IA-stipported ad justmenit program. of dramatic xvaysdurinig the year: thrrough ap- These allou ations are in pr-oportioni to the ]CR0 proval of $I billion in finanaceto support finanicial interest cdue in that year. In fiscal 19935,the pro- sector reform in Mexico; emergency assistance to gram provided supplemental IDA allocationisto- Russiato contain and clean up a nmassiveoil spill taling $185.8 nmillionto fourAtee11countries. 1,0)00miles nortlheast of Moscoxv near the Arctic Thc Debt-rediuiction Facility provides low- circle; fin an ciing of emer-gencyvrecovery pr-o-gr-ams income counitries wvithgrant funids to reduce in Burunidi and Rxianda: and provision of emer- their commercial debt that is public, external, gency assistance to Haiti to halt that coun1try's nioncollateralized, andc unguaranteed. The facil- econiomic and social deterioration. ity is financed through contributions from the

()VFRVxI \': (I WC,R1 1' BANK A(CFi\ ITIFK 13 BR'S net income and from donors. Eight operations have been coompleted(for Bolivia, Guyana, Mozambique, Niger, Sao Tome and Principe, Sierra Leone, Uganda, antd Zambia); they utilized 879.6 million in IBRD resourccs from the facility and $74.3 million in cofinancing to extinguish about $1 billion in principal. Eight additional operations-in Albania, Ethiopia, Guinea, Mauritania, Nicaragua, Senegal, Tanzaniia, and \Viet Nam-are currenitly under preparation. WVhileternty-five couLntries have 'graduiated" or phased out their reliance on World Bank lending, the Repulblic of Korea became the i'irst counitry ever to progress firom being a puL-ely concessional borroweir from IDA to being an IDA doncor and an iBRmgraduate. Korea reached the milestone with the signinig on Marcih 3, 1995, of its two final loan agreemilenitswith the IBRD. Eritrea joined the ImRaoon July 6, 1994,bringing the total membership of the BRD)to 1 78. At the end of the fiscal year, actioni was pendinig on membershiip in the IBRDfor Bosnia-Herzegovina, Brunei Darussalamil,and the Federal Republic of Yugoslavia (Serbia/Montenegro). Eritrea and the Azerbaijan Republic becamile members of IDA on July 6, 1994 and March 3 1, 1995, respectively, increasing IDA's membership to 158. At June 3(, 1995, action was pending on membership in IDA for Bosniia-Herzegovina, 13runei Darussalam, IU!krainle,and the Federal Republic of Yugoslavia (Serbia/Moniteniegro).

14 THiE WORLiDBANNK ANN\IIAI RLPORF1(95 Sr :(>l 1<)( ()N0N Tufi Ex i: i -i-i: B- {,\l l)

The board of executive direc- Committee, Personnel Com- Many of the changes in tors is responsible for the con- mittee, and Committee on Bank policy that grow from duct of the general operations Executive Directors' Adminis- initiatives by the executive of the Bank and performs its trative Matters. The executive directors occur gradually over duties under powers delegated directors' Steering Committee, a period of years, such as the to it by the board of govemors. an informal advisory body, also increasing emphasis on envi- As provided in the Articles of meets regularly. ronmental issues, governance, Agreement, five of the twenty- In addition to the meetings institution building, and the four executive directors are ap- and committee work, groups role of the private sector in pointed by the five member of executive directors at times development; the discussion governments having the largest travel to borrowing countries by the board of Bank country- number of shares; the rest of in order to learn firsthand- assistance strategies (CASs); the the board is elected by the through talks with govern- opening up of Bank disclosure other member governments, ment officials and inspection policy; and the renewed inter- who form constituencies in the of Bank-supported projects- est in lending for both infra- election process every two about country circumstances structure and human-resource years. and special problems. In fiscal development. The executive directors 1995, a group visited several Other initiatives by the ex- consider and decide on the transitional states in Eastern ecutive directors occur more IBRD loan and IDA credit pro- and Central Europe-Albania, rapidly, such as the creation in posals made by the president former Yugoslav Republic of 1994 of the independent In- and they decide policy issues Macedonia, Moldova, and spection Panel that reports to that guide the general opera- Ukraine. the board. And in fiscal 1995, tions of the Bank and its direc- for example, as a result of tion. The executive directors Shaping Policy the shock effects of the Mexico are also responsible for presen- The board of executive di- peso crisis, many directors tation to the board of gover- rectors has an oversight role pressed for considerably more nors at its annual meetings of that covers virtually all Bank lending to strengthen financial an audit of accounts, an ad- policy. It considers initiatives institutions in countries affected ministrative budget, and the proposed by the president, so by the crisis. The directors were Annual Report on the opera- its role cannot be separated also active in discussions of how tions and policies of the Bank, from most of the Bank activi- to ease the debt burden of as well as any other matters ties covered in this report. low-income countries. that, in their judgment, re- However, the executive di- quire submission to the board rectors also exercise an impor- Accountability and of governors. tant role in shaping Bank Development Effectiveness During fiscal 1995, the policy and its evolution as For some years the execu- executive directors met 131 they work for changes in di- tive directors have been en- times in formal board meet- rection, emphasis, and/or im- couraging the Bank to become ings and another 67 times provements in Bank results. It more efficient and show more in seminars, informal sessions, is in this role that the directors accountability as an institution and as the Committee of the represent shareholder govern- while encouraging more ac- Whole. In addition, most of ments and their changing per- countability by staff and man- the executive directors serve spectives of the Bank. These agement within. Both areas of on one or more of five stand- policy initiatives normally re- concern moved forward con- ing committees: Audit Com- flect needs perceived by share- siderably under President mittee, Committee on Devel- holders and involve a process Lewis Preston, who appointed opment Effectiveness, Budget of consensus building, both the Task Force on Portfolio among directors and with Management upon taking Bank management.

SECTION ONE THE EXEcUTIVEBOARD 1; office. The task force report (the 'Wapenhans became a reality in fiscal 1)9)5. The new Report") resulted ill a maljor policy shift for the committees mandate combines oversight of the institutioin toward results-oriented supervision work of the Operations Evaluiation Department and impleniciitationi in the field, along with an (l formerlyrL), a ftinctioni of the AuLdit Cori- increased emphasis on the qvuality of pro jects mittee, w,ith a new directive to deal with issues and operations.The "cUltural Chanlige'' plrOcess is related to the effectivclness of onl-the-Qrnu1(l. re- Still nlOt Complete, alnd the exectitiNe director-s suilts of BaLnkoperations. are activ e informallly and in hoard comm ittees 'TlheI( (w11 also ov:ersees the responses of Baniik in helping to shape aLnappropriate personnel management to oL r's findings and recommen- policy, as w\ell as a nexv field office policy, to datious. In fiscal 1995. the cc)lo's findin,s and comilplemilenit thc implemilentation focus. recomniendations wsere reviewed by the ftill The executive directors are involved in the board, as were the fiscal 1394 annual report of hiudget process of the ilnstitution at vaiotis the director general (i I, Operations Evalua- points. They discusss planning directions i nfor- tioin, the annual review of ev aluation restilts, mally with Mallagemnt'crt, \\hicih corer botlh anid the eValulatiOn) work prog-ramfor fiscal planned eXpeIdi tcires aind aruis of policy anid I C99) operational emphasis. The di-ertoi-s' Bu1dget Tlhe inspection PaLnelcomilplemiienits the Ban;k's Comimlittee discusses variouIs aspCrts of the existing systems tor qluality control in project buIdget over the course oft thc year '[lhe stream- preparatioil anid implementation. As such, it lining of the Bank to reduice its admin istrative helps the exectitive hoard in its governance ot costs, as well as improve othiel- efficiency mat- the B ink In fiscal 19'9, the Cxecuti\e directors ters, had been stressed for some time. In fiscal JiscuLssCd the panel's procedurIYes ill the conItext 1995, PIrcsidelt resto alloilIced an illitiative of its fiist riqcuiestsfor inslpection. to reduce the administrative budget by 1(3 per- T'he execrrti\ e directors have spearheaded the cent to 121 percent oser tvo 'ears. Bank s fortis on beneficiary participationl w\hich The executive di C'ctoFrscon(ern fOr accouIlnt- was isecn a boost by the Wapenhans Report's ability \sas furitherl reinforcedl in fiscal 19)5 by finding that beneficiary pLarticip itioni in the dce- their rev'iesv of recommenIition.s of tIm' Ad Hoc sign and implementation of pi o0ev ts greatlyen- Commiittee oni Board Procedures, WhiCh had hancecl projects' chances of success Flie dcirec- been approved two %ears earlier by the board. tors more recentlv have led the ssaw in defining The revised board pi-ccl'dures svere an atte'mpt participation as direct bente,ficiary ps rticipation, to definie mor-e exlplicitlv the accountability of ratiler than accepting non-goverinmental organi-

the board for -Policy and operational os'ersight zations (N(ocos) as proxies for bIeneficiarics sinCe

and set staicldardls for the ( As papers prepared hby their interests are not necessarily the same. (It is manalgemrrent. The Bank's lending strategy for recogn1ized that Nkluosma: lVaVe a role to play in mlost borrowin,g (ountries is disCLissed by the helping the direct beneficiaries organize then- boar-d eser' two years. atid that for the largest sel es.) borrowers is disr Lussed ever y year. In the 19)5 review, the rlirectors m3ide it clear thalt tIle Cq-ai- The Private Sector itv and (comilprellesieless olfthe ( \S papc'rs Again, the private sector focuLs has groxw'n out still neecled inmprosremelrt particuilarly reg-ard- of several 'ears of Colselsus Lbuildingby the ig rOcteragc' of social and pos'ertv colcel-ris and executi\e directors. It aiis for de\velopmiienit Countriesj potelltiLll problcms and oppor-tuI1ities dririen by the priatce sector, sith an appropri- related to thte external environmieint. Directors ate public sector role in the guiclance and regu- also made it celar that they svoulr contintLe to latioll of the private sector. The private sector is monitor closely the qualitJ of Bank projects. noss a recognizerd area of emilphiasis for the Bank, In another move to iniprose Bankl accoulnt- ahilits; the director-s crerated the Committee

on Development Effectiveness )1)F 5\.lioilw(hich . v i ;wilon t ic. nitiviIi:oftim'()x'rijtioii, FIjdlwtwill IX'gnrtm uit so' pa4'>44-45.

Iii T.i W\V i.> B`xNl-v A-v \i Ru',s 1i\AI althoughlthere is not yet a formal, comprehensive policy other thianthe view that the Bankshould complemenit,not displaceor compete with, the private sector. Efficiency and accountability themes permeate this policy area also, particularly since the IF( still has the most private sector experience in the Bank Group. Closer coordination and inforniationi-shar-ingamong the Bank, the 1C, and MiiGAhave heen outgrowths of the emphasis on the private sector Another outgrowth of both the private sector- emphasis and the desire for more efficienicy was the decision to mainistream Bank guaranitees as an operational tool. Again, several years of experience withi a pilot program helped achieve conisenisus among the executive directorl-son a dramatic departure from xvhat had been Bank policy for half a ceitury. Although the Articles of Agreement menitioni guarantees, the\ have been used only sporadically and have never foUnd a widespread role in Banik operations. In fiscal 1995, however, the board agreed that the Bank's guarantee could be used muchI mor-e, given a numbeL- of conditionis, to attratA private capital ancl the private sector, particularly to large infrastrlucture projects. Since the EL and ic(;,\are also involved in guarantees, directors stressed the need for carefLil coor-diniation antd collahoration among the parts of the Bank Group, as well as with bilateral export cr-edit agencies.

Appointing a New President In March 1 995 the executive directors unanimously appointed James D. Wolfensohn to become the Bank's ninth president. He wvasap- pointed for a term of five years that began on June 1, 1995.

SE TI()N ONE THF END- I TIVL Bo)ARL) 1I ' I: ('' -II()x '1T' W,ORI;\g) .1) BANK" PIP()(;RA,vMS 1LIS(,\I. YI:.\lt 1993t5

Human Resources Development

Evidence that human capi- cent in the period fiscal 1993- amounted to $3,907 million: tal development-the focus of 95. The Bank is now the single $2,097 million for education- the Bank's vice presidency of largest source of external fi- sector projects; $1,162 million Human Resources Develop- nance for investment in hu- for projects and components ment and Operations Policy man capital in developing in the population, health, and (HRO)-is critical for overall countries-with support in- nutrition sector; and $648 economic and social develop- creasingly going to the provi- million for projects in the so- ment is not new. What is new sion of effective primary ser- cial sector. is that the awareness of its im- vices in education and health, Despite this shift in the pat- portance has gone beyond the where the impact on poverty tern of lending, the task ahead confines of academic scholars reduction and growth is the remains large. The Bank's and social reformers and has greatest. long-term vision in the area of entered into the thinking of Bank lending for education human-capital formation is to mainstream decisionmakers. has exceeded $2 billion in help developing countries There is a growing demand each of the past three fiscal reach the point where inad- from developing countries for years; since 1986, the Bank equate investments in people Bank support in the area of has lent more than $800 mil- no longer hold back growth or human-resources develop- lion to fifty-one HIV/AIDS keep people in poverty. How- ment; both lending and projects in nearly forty coun- ever, it remains a challenge to nonlending services have tries; and in the past two fiscal persuade some countries that grown rapidly during the first years, the Bank has lent almost the social sectors are not half of the 1990s. $1 billion in support of popu- "soft." In fact, they are "hard," The past fifty years have lation and reproductive health and there is no doubt that witnessed the Bank's evolution objectives. early and substantial invest- from an organization created The core issues at the World ment in people allows eco- for the reconstruction of post- Summit on Social Develop- nomic growth to benefit a war Europe into a modern in- ment (Copenhagen, March larger share of the population, stitution seeking partnership 1995) were consistent with thus effectively reducing both with its clients in expanding current Bank priorities and poverty and inequality.' markets and strengthening lending directions, including The challenge of develop- economies to improve the the expansion of social sector ment in the broadest sense is quality of life for people ev- lending and more systematic to improve the quality of life erywhere, especially the poor- attention to safety nets and so- in the poorer countries of the est. And while the Bank's fun- cial impacts in the design of world. Although a better qual- damental objectives remain economic reform programs. At ity of life generally calls for the same, its approach to de- the summit, the Bank an- higher incomes, it involves velopment has evolved over nounced plans to increase so- much more than that: It in- time as new challenges have cial spending by 50 percent volves quality education, emerged and lessons have over the next three years. At a higher standards of health and been learned. time when foreign aid flows Bank lending for human- are contracting, it committed I. The rate of return to primary resource development has in- itself to providing $15 billion education investment in developing creased sharply from an aver- for basic social needs and a countries is 18 percent-a much higher return than from most age of about 5 percent of the further $5 billion for water- investments in the industry and total in the 1 980s to 15 per- supply and sanitation pro- infrastructure sectors. grams. Lending for basic social needs during fiscal 1995 alone

18 THE WORLD BANK ANNUAL REPORT1995 nutritioni, a cleaner environment, aindmore eco- Poverty-reduction activities. In the area of nomic opportunities, poverty and social assistance, the Bank's annual Experience shows that this improvement in report on its poverty-recluction activities4 fouLnd the quality of life results by moving simulta- that 25 percent of total Bank investmenit lend- neously on two parallel tracks: economiiic re- ing in fiscal 1994 (43 percenit of total IDA invest- forms, to provide stability and ani enablinig envi- menit lenidinig) xvas directly targeted to the poor; ronment for growvth, and investments in these investments supported activities to in- people-educationi, health, nutritioni, family crease the productivity aind econiomic opportu- planning. The two reinforce each other, and to- nities for the poor, to develop their humani re- gether, they can form a "virtuous circle" of sources, and to provide social safety nets. The development, evaluatioll noted fturtlherthat the quality of Successful coun1tries, in fact, have moved on country-assistance strategy (wAS) staitenmenitsalso both these tracks. There is no-and can be no- improved, while the Bank continiued to extend delinking of economic reforms aLncdeffective and improve its use of participatory techniqLues social policy. Econiomic growtth is crucial. No in its anialysis and lending. Eleven povert' as- country has achieved sustaincd improvem ents sessiTelts wverecompleted dunring the period in living standards without it. But investinig in unlder review, and much additionial econiomic people to create human capital-which is the and sector wsork supported poverty-reduction main attribute that people dr-aw on in order to efforts at the country level. live more productive lives-is equally critical to The report weent on to say, however, that a raising living standards. fundamental constraint exists to evaluating the The fiRC vice presidency was established in effectiveness of the Banik's efforts at reducinig 1993 to address the full range of issues related poverty. Experienice has shown that it is virtu- to human-resources clevelopment, poverty re- ally impossible to disentanigle the aggregate "on- ductioin, and operations policy. Within the vice the-groundlli"impact of the various actions taken presidency, tw\o sector departmeints-Educatioin in a oiVen coun1try by any one donor from those and Health, and Poverty and Social Policy ad- takeni by otlher donor-s or by the government. It dress social sector issues. Each department has ai is possible (but difficult), nonietheless, to assess team-based managenmenit structure, and the the aggregate effect of all factors and of specific work programs of eachi are organized into eight projects. Monitorinig poverty levels in maniy thematic areas. The first four are along the con- counitries is constrainied, hovever, by a lack of ventional sectoral lines: education and training, reliable data. The report recommended, there- healtlh, population and reproductive health, ancd nutritioni. The other foeurdeal with cl-oss-cutting 7. A 19094polro research: report'tI .AIi','rtiigHI"the tAtir (le interlockinigissues: poverty and social safety Cris'nkPo/ILII('s to Proenctte Oldnl/C)l PromoteGrowvt/h. nets; social securitv and labor markets,' gender *akesa strnnig Lstefor retormingexisting Pension ovstelris rnd desigrilllgl newles 11n was th1t both protect tIlh oldL analysis and policy,) and early childhood dcevel- ml eisirags econoniic g'oxvth 'Ihe I rsc vice presidenc opnment. is w\orking ssf%li the Bank's six oper,rtional regions tir ihelp The vice presidenicy's third departmenit, the co unltries design affordable, adir2imitrativel%'feasible sotiLa Operations Policy Departmnxt,i1I p \ lot lm%e pris nunique o p e mt4 al ldserse effect o41\\rirk incentives or laboir dema1nd. that it has a perspective over the entire opera- 3 In Ilte 1919)4,a1 twvo-da\ conrereiie. cosponsoredl by the tiolial complex. It is responsible for portfolio- Bank anTdLIthe hlrter-Anria an Desvelrpiiernt Bank. ;siasheld nmanagementfunctions, issuance of operational tto LIupdate staLIff (I tez tWl nstitcLtioi)s cr11 recenIt resea r'c I 1 , 1 I~~~~~~~~~~~~~~~lilte]ICIL1Ct r iS.ILleC Leadilll_: dLL,11CILSv %\ere M\1XItedl to shl rte directives, procurement activities, technlical as- tgene issues. I eu acnics irert vited s thleir fi 1 clinlgs a'aIs as to sens~itize staff toi L nridtLer sistance oversight, Bank relationis with nongov- i'ciinirnlic arid povi'rtv sores froma more gender view- erninental organiizations (Nc,CS),participatoI-y poirtt, tO IrLakestatff r\LsareCrf tbe rotting eClge reSeaLrcLh0o1 development, xvork related to the Developmenit -I LtlIL 1 e, nel-ari O LI h t J It 0 1h iiid a i c g ti genider wrrrk bet%\wri' doioi-iinrrist it Liti nil Committee, Banik/uIN relations, public sector andl the acadlkc1inri t-inillrinitv management and governance, and computer in- 4 \'rlci Bank 1095) Pr'rrts' Re,'/rcticcrcon tie1f lurid formation services. Btii,'. Progressini Fiscil 1°)4. Wasirinigtorr,D.L(.

S t iTli)N T\i O MA1i 'R WXRI 11B \NK\ PRO(,R \515; 1 9 fore, that tihe Bank and other donors expand reports on population and womeen's health that their assistance to build capacity for- poverty were widely clisseminiated at the International monitoring, for onIl bv svsteratically capturl-ilg Conferteice on1 Population and Development data can the on-the-ground impact of govern- (Scptenlber 1994, Cairo>). ment and donor-supported eff'orts to redutce Speaking at the conferen1ce, the late World poverty be assessed. Bank president Lewis Preston) noted that if the In the context of the tenth agreement to re- development commulnity does not deal wvith pleinish IDA resources (IDA-1i1), the Bank coni- rapid populationi growth, poverty xvill not be re- mitted itself to increase steadily the share of duiced ancl development xwill not be sustainiable. both social sector and poverty-targeted invest- DUI jnjJ tiscal 1995, the Bank published all inienlt lending during the thlee-year L.A-\i-pe- i Ru-authored report, EnrichingLilies: Ov'ercomn- riod relative to IDLA-"' (fiscal 1 91-93), where inig l'it;enini an MidNlerialiMlalnutnmtion in Devel- justified by the COLibtrv-assista.icestrategy; to opingCounries,e xxwhichreported that millioins of include specific poverty-reduction maeasur-esin lives arounid the xvorld could he saved and the the design of aild;ustnmenitopcrations wvhenever quality of life of hunidiedls of( millionis markedly feasible; andcto 0o111pletepoverty assessnients improved-very inexpensivcly-by eradicatinig for all major iL)nrecipients by Dccember 1994. three vitamin and minieraldeficienicies in Lendin, during iscal 1995 for projects in the people s cliets. Bank's progranm of tar-geted interventions (i n) The thl-ee vitamins anid minier-alsare vitamin was 32 percent of total investmnent lending (see A, iodine, and iron-so-calledn microniutrienits. Talitle2-1) IL)A conmmiiitmenitsfor the Hi , as a More thani 2 billion people are at risk from mi- share of IDA investment leniding, amouLntedi to crolnutrienit deficiencies, and more than I hillion 54 perceint. Projects aire included in thIe en i if are actually ill or disabled by themi, causiilg they ilnclude a specific mlechlanisnm for targeting meiltal retardation, learning disabilities, low the poor or if the propor-tioni of the poor amilolng w,vorkcapacity, aind blindiless. It costs little to project benieficiaries significanitly exceecds thieir correct these deficien1cies through fortification proportionl in tile overall population) of food andcwatcr supplies. In a coul1try of ?50 Of the txventy-scvern adjustnmelnt operatiolns ilillioll people, this xvould cost about $25 nlil- approved during fiscal 195 (n0t including lionl a year. That $25 nmillion wvould yield a tllree debt-r-eductioIn alls), foUIteell, or- 5-2 foI-tvfold retUril Oil investmlenlt. percent, were poverty focused.' 'rhie Bank is involxed in microllutriCllt By June 31, 1 (95, poverty assessiients had projects in thirty countries. Microllutricllt in- been completed for tilirty-thiree IA-recipieIt vestlllenits by the Balik in fiscal 1995 allloulltec conlltries OtIt of si\ty-lline coulltr-ies that have to all estiiliated $71 nIillion. recently received IL),\ credits. Assessniellts are ulldel- vav in anlother twenty-six IIPA CoUtitries.

Despite thie fat that thie IA-WI agreemlellt did 5. A dsctription ofl0ac]h proieejtt in the I'T that wa,Is 0 inot define wvilat was mcalnt by nilajorlIlA recipi- apPr-oved dI oIrI FisiCal 1II 9 ) L heI f0oLndIin the project

ents,'' poverty assessmlenlts were ulndertakell dur- SIH1111J1'iz ill Section11 F-otI Of this AnnuauilReport. The rlr

ing the vear in tell coUilItries that are botIl large Prl meC iri e h 1i ene- tdrkach i 1)A *1es,ription A~01 15:\l-IO0LA1edL'M CM ad(ju1Stmen1t aind active II)A borrowers Al aania, BLurkinia opn'i-tioll that \was aipproved dutn HiL'fiscal 195 eain hbe

Faso, C6te d1voire, Kyrgn 7z Republic, the Lao to,nrd in the project summaries in) section Foor of thiis People's Democratic Republic, Nicaragtua, Animnl Report. These operaitions are m11ar1kedl1by [t]. Nigeria, TaInzallia,Togo, anci Yerlrl.c WorldBImink 1'91)4. P'oIpurlrititri tn1 il Der''lomtneirt: Iirrj li/ /tir' 10i dIn; ot/cl/ 3,,,fk. De\elopment in Practi5 e Population, health, and nutrition. Iltelisified Series Wrihrton, D.C.: WrrrldBairk. 1994. A Neti' efforts dluring th e past tmx:ov ears in actix i i evs re- -IgynIflldfur 10lerti I1(clthi tirti Ni tin ii. Developmcent in 4 lated to poptilationlait reproductive healthl cul- PI a tie S 'ws Washirgtolr, [) (C. nliPlated in tile ptlblicationll in fiscal 1995 of txx o S Wm r ILIBank. 1 't)4 FPirrich/iigLir'es: Overc,mr-r-inigIVitamrrin rrr/thr nilel,\hlrrrriritirnr iii Der'l;br/rirlgCrOrrtntrics Des rlop mllerIt iII) raiLtice Serlies. \'asShinI,gton, D C.

0 ITi \V('RI1)i?BANKN ANN'wi Rii IORI 199( TABLE 2-1. PROGRAM OF TARGETED INTERVENTIONS, 1993-95 (millions of us dollars;fiscal years)

1993 1994 1995

Total World Bank PTI lending 4,674 4,441 5,437 As share of investment lending (%) 27 25 32 As share of all Bank lending (%) 20 21 24 Total number of PT[ projects 72 63 75

IDA PTI lending 2,137 1,853 2,423 As share of IDA investment lending (%) 41 43 54 As share of all IDA lending (%) 32 28 43 Number of IDA PTI projects 44 35 48

NOTE:Investment lending is definedas all lending exceptfor adjustment, debt and debt-servicereduction operations, and emergency-reconstructionoperations.

Health-sector reform is at the center of the the most likely candidates to perpetuate Bank's project and sector work in mnostmiddle- poverty. inCome countrics and in an increasing number Evidence conifirimisthat healti, nutrition, and of low-income counitries, as well. 1orld Devel- educational interventions early in childrens' opmient Report 1993, Better Health for Africa: Ex- lives yield high returis. The Baankis one of the perienCe ittitl Lessons Learned, alnd other Imlajor leaidirng inlternlatioInal financiers in the field of studies provide the basic framcwvork for health- early childhood developimnent:Siince 1990, lendl- sector reform efforts. Because borrowers and ing in support of early childhood developmenit donors alike look to the Bank f'or leadershiip in has inVolved ftourteeni projects or project com- this field, sulbstantial additionial resources dur- ponents in sixteen couLitr-ies. ing the past fiscal year were devoted to healthi- Support to education. The Bank today ac- sector re'form activities, counts for about a quarter of all externll sup- One critical area of growin,g attenition in port to the education sector. Since its first edu- Banik-suppor-ted projects is the nurturing and cation project waasapproved in 1962, the developmenit of the next generation: the cilii- institutioni has continuously expanded its fi- dreni of the developing world. nalncilg of educationi projects, in both absolute 'Three millioni children in developing counl- and relative termis, as part of its mission to re- tries die every year because of lack of clean wva- duce poverty. CuLIlulativc lendinlg for education ter; 12 million chilcdreniunder the age of five die amounits to $2 1,57) million throughi more than of various othel- causes; and 130 million chil- 500 projects in more thani 0()()counitries. dren do not have access to primary eCLucatioll. This volume of finanicc gives the Bank a leacd- More than a million childr-eni are blind because ership role among doniors. Compar-ecl with they do not get enough Vitamin A. Anotier 50 spenldiln" On educatioln by low- and middlc-in- million are seriotisly impaired, both mentally comnecoun1try governments and peoples, hox- and physically, because their diets lack iodine, ever, external financing plays a minior-role. A In low-income countr-ies, more than half' of conservative estimate of publi. spending at 4 young childrci are anemic, leading to a vicious percelit of ;NI1 and private spending at 2 per- circle of poverty: Malnoul-ishecd mothers give cenit Nields a total annual edutcationi expen.diture bir-th to louw-birthweight bahbies, vho b(ecorne of $270 billion for all lovw-and middle-incomne couLitries. All external finance togethelr, liow-

SI ( 11( N Tv,A) N1i('5 WK )RI I BANK PR'R,RA\\i 21 ever, anmounts to only 2.2 percent of this total, Evidence of the positive effects of participa- and WVorldBank financing to only about 0.8 per- tion is growing. A recent study of people's par- cent. This iow share means that the Bank's prin- ticipation in environmental assessments in Latin cipal contributioni must be to provide advice America found several instanices where impor- designed to help governmenits develop educa- tant environmental effects and mitigation mea- tion policies suitable for the circumnstances of sures were only identified throtighi broad public their countries, consultationi and discussion. Similarly, a review A report-Priorities and Straltegiesfor Educa- of economic and sector work (cswN')in Africa tion: A IlAorld Bank Sector Review-synthesizes found that "by far" the most striking and gener- the Bank's work on1educationi since the 1980 alized attribute to successful LsW had been the publication of its education-sector policy paper increasinig involvemenlt of the governmenit, local and considers options for the Bank's borrowvers, consultants, and stakeholders in its preparation The report was cliscussed by the executive and discussion. board late in the fiscal year and vas amended Followinig the executive directors' endorse- after taking into accounit directors' comments. ment of a plan of action to mainstream partici- It concludes that reforminig educationi financ- pation, several initiatives were undertaken during and manageriamentof educationi means rede- ing fiscal 1995. A Senior Managers' Oversight fininig the role of goverinmenit in six key wvays, Committee was established to oversee the xvith appropriate priorities depending on couin- mainistreaminig of participation in Bank opera- try circumaistances.They are: a highier priority tions. One of the first tasks of the committee for education in general: greater attentioni to the w;as to review Participation Action Plans pre- linkages between learning and labor market out- pared by each operational region Thesc plans comes; focusing public investment on basic specify procedures and plans for inte"ratinig par- educationi, coupled with more reliance on pri- ticipatory approaches in lending operations and vate financing for higher educationi; increased FS\wV. attentioni to equity issues; greater involvemient The first in a series of Bankwide training at the household level to improve the account- courses in stakeholder participation took place ability of educationial systems: and more au- durinig the year The regionis have also uLider- tonom11ousinstitutiols, taken several staff-traininog initiatives: The India These six key areas of education-system re- Department has developed a course on stake- form will be supported by World Bank projects holder participation, and the Africa region has in the context of the principles that the Bank held a trainiing and information seminar on svs- adopted in 1994 at the time of its Fiftieth Annii- tematic client consultation. versary to guide its future operations: ureater The $2 million Fund for Ininovative Ap- selectivity, partnerslhip, clienit orientation, re- proaches in Humani and Social Development sults orientatioln, cost effectiveniess, antd finan- (FlAHS),set Up late in fiscal 1994, enabled the cial integrity. regionis to strengthen their capacity to use par- Participatory development. The Bank con1tin1- ticipatory approaches and social assessnment ues to encourage governments to support par- methods by hiring thirteen social scienitists to ticipatory development approaches. The partici- provide techinical support in these areas. The pation of directly affected stakeholders in HAIis also provided suppor-t for the use of par- Bank-supported projects that is, those people, ticipatory approaclhes or- social assessments in particularly the poor and marginalized, wvho forty-eight projects and in ESWv. The fund's re- may he expected to benefit or lose from Bank- sources, xvhich were exhausted before the end supported operations-is increasing. A prelimi- of the year, will be replenished in fiscal 1 996. nary review of fiscal 1995 operations reveals Bank relations with NGOS. In fiscal 1995, 41 that eighty-six out of a total of 242 newv per-cenit of projects approved by the Bank plan projects included influential forms of participaL- to invOIe NGOS (see Table 2-2). Two trends evi- tion by clirectly affected stakeholders. dent dur-ing the past year xverc increased NGo involvement at an earlier stage in the project

22 Ti IL WoRm1BAN K AN\I\[Wi Rioo i 1995 TABLE 2-2. PATTERNS IN WORLD BANK-NGO OPERATIONAL COLLABORATION, FISCAL YEARS 1974-95

Total 1974-92 1993 1994 1995 No. % No. % No. % No. % By region(number of projects) Africa 236 n.a 31 41* 38 63* 33 57* EastAsia and Pacific 53 n.a 12 27* 22 51* 12 29* South Asia 68 n.a 11 42* 15 79* 12 67* Europe and Central Asia 10 n.a 2 7* 10 24* 17 29* Latin America and the Caribbean 71 n.a 14 28* 24 50* 22 42* Middle East and NorthAfrica 21 n.a 3 16* 5 31* 4 29* Total 459 n.a 73 30 114 50 100 41

By sector (number of projects) Adjustment related (includingsocialfunds) 35 8 5 7 12 11 9 9 Agriculture/rural development 172 37 14 19 36 32 29 29 Education 47 10 6 8 10 9 14 14 Environment 25 5 13 18 5 4 6 6 Industry/energy 41 9 8 11 13 11 8 8 Infrastructure/urban development 67 15 8 11 24 21 15 15 Population, health, and nutrition 64 14 16 22 14 13 19 19 Rehabilitation/reconstruction 8 2 3 4 - - - - Total 459 100 73 100 114 100 100 100

n.a. = Not available. - = Zero * Refers to percentage of NGo-involved projects in all World Bank-approved projects in the region. cycle, especially in the assessment of potential ticipationi in the Bank's operations. At the same en,vironmental and social impacts of Banik- time, a task force, composed of NGO represenlta- financed activities, and increased NG,@involve- tives and Banik staff, was established to Find ment in Es\\. For example, NGs)s have played an ways to identify-and overcome-obstacles to active role in assisting many governmenits in Bank-N'wo collaborationi at the operational aLnd preparing participatory poverty' assessments and policy lcvel. On the Bank's side, to assist task nationialenvironmental action plans (NEAPS). managers in better understanding the benefits These NCO inputs contribute valuahle alterna- and challen.gcs of working wVithNGcS, the Op- tive perspectives and provide a vehicle fotr fur- er ationis Policy Departmenit published a practi- ther government-NG) collaboration. cal guide, "Working with NCO.S,` wlhich idenltifies Throughout the year, the Bank organiized a key issues for successful collaboration. number of xvorkshopswith NGc)s anid govern- Policy dialogue with NGosduring fiscal 1935 ment representatives on the Bank's project focused on issues related to the ongoing nego- cycle and the various procedures that talke place tiations over the elevenith replenislhment of IDAv\ within each segment of the cycle. Tlese wvork- resourc-es (IDA-I i) The World Banik-NGO Coin- shops help improve Nc(OS' understanidinig of the mittee organized three regional N(;c meetings- Bank's activities and encourage their active par-

Si (I Ic N T%c() M-\iOI Wc' I )iBANK Pac()clRANRV23 BOX 2-1. A CONSULTATIVE GROUP TO ASSIST THE POOREST In March 1995, the Bank was authorized by its loan-repaymentrates, and a demonstratedability to executiveboard to participate in a consultativegroup mobilize matchingfunds, preferablyfrom nontradi- that has been designedto increasethe resources tional donor sources. availableto the verypoor. A small secretariat,to be housed within the Bank, Financingfor the group,to be called the Consulta- will solicitproposals from participatinginstitutions tive Group to Assist the Poorest(CGAP) is to be an- and donors.It would screen,evaluate, and approve choredby a Bank contributionof 30 percent (up to funding within the framework establishedby the $30 million);contributions from otherdonors are ex- CGAP. pected to total $70 million. The CGAP was formally constituted in late June The aims of the CGAP are threefold:to expand the 1995, with participationfrom Canada, France,the level of resourcesreaching the poorestof the economi- Netherlands, the United States, the Asian Develop- cally active poor,initially throughmicrofinance pro- ment Bank, the Inter-AmericanDevelopment Bank, grams;to improve donorcoordination for systematic the International Fundfor AgriculturalDevelop- financing of such programs;and to provide government, the United Nations DevelopmentProgramme, ments and donors with a vehiclefor structuredlearn- the United Nations Capital DevelopmentFund, and ing and disseminationof best practicesfor delivering the World Bank. financial servicesto the very poor The next meetingof the consultativegroup is Programsoperating in variousparts of the world scheduledfor January 1996. In the interim, the sec- that deliverfinancial and relatedservices to the very retariat will carry out its work plan, which was ap- poor have proved to be effectivein reducingpoverty proved by CGAP membersat their June meeting.Ac- and hunger.The CGAP, therefore,would not deliver tivities will include developing(a) a standard donor senricesdirectly to the ultimate beneficiaries;rather; format for the appraisalof microfinanceinstitutions, it would seek to strengthenthe capacitiesof those in- (b) monitoringand evaluationguidelines, (c) a for- stitutions that, among otherthings, have proven mat for handlingfunding proposalsfirom participat- track recordsof reachinglarge numbers of the poor, ing donor governmentsand institutions,and (d) a sound financial policiesand high cost-recoveryand strategyfor the disseminationof lessonslearned.

in Colombia, Ethiopia, and India-at which The Bank's Economic Development Institute participants stressed the need for a full IDA re- (EDI) is forming a network of trainers, consist- plenishment. In April 1995, represenitatives ing in large part of NGO staff, to work with from a diverse group of N(,)S met Witil IDA grassroots entreprenieuL-s in cleveloping coun- Deputies and coniveyed their strong support tries. The program enilanices their organizations' for inA. They also asked that IIA assistance be capacity to train microeritreprenieurs,monitor more carefully tar-eted on efforts to reduce and evaluate projects, and cleliver gender and poverty and that increased emphasis be placed social analysis training The German-based NGO, on removing constraints that prevent the poor Transparenicy Internationial (ji), has been instru- from benefiting fromil ecoinomic policy reformis. melntal in EDI'S work on goverinaniceissues. TI NGOS also strongly supported the establishmenit and EoI are working closely together in Southi of the Consultative GrouLpto Assist the Poorcst, Africa and Uganda to traini senior government through which the Btank will directly finanice officials (and inform the general public and N(G;osworking in the microfiinancefield (Set jourinalists) on1issues relating to governance. Box 2-1). NIiumerous consultationis with NL;)5 were Environmentally Sustainable Development held throughout the vear in preparation for The establishmenit in January 1993 of a central the World Summnit on Social Development in vice presidency for environmenitally sustainable Copenhageni and the forthcoming World development (ESD) explicitly recogniized that de- Women's Contference in Beijing. velopment could be achieved and sustainied only

24 THELWRII) BANK ANNH\U Ri'i)Oii 1')95 tlhroughithe integration of economic, social, tech- inobilize a combination of private and public nical, and ecological dimenisions, sector initiatives to provide af'forcdablehousing, In the interveninig thirty months, [SD has efficient muniicipal services, and a healthv urban played a major role in promotinig integrative environment. approaches to development. Challenges have Institutional tidiii pvsical inifraistnrctuire.New included (a) reconiciling the objective of long- partnerships between pulblic and private sectors term sustainiabilitv with that of medium1- and must be developed to provide adequate infra- short-term cost effectiveness and (b) defininlg structure services. sector-by-sector and topic-bv-topic Bank poli- IsLD has takell Up these four challeniges by cies anld practices that are conisistenit with the contributing to well-formulated Bank projects objective of sustainiable development. In carry- througlh its support to the six operational re- ing out its mandate, rsn has pronmoted best gions, bv formulatilng policies and disseminating practice, provided quality guidance, facilitated best practices, training staRf and building part- inn1ovationi,and disseminated information. nerships. Awareness that the relationships among sectors Support to operations. ESDLprovides direct are complex stimulatecl LMs)to give greater em- operational support throughl its (a) participation phasis duLinagfiscal 1995 to cross-sectoral link- in "cuttinig edge" operations in new fields; ages ancd institutionial partnerships. (b) production and disseminiationi of best prac- Advancing environ-mentally sustainable devel- tice papers, which are highly effective in sup- opment by breaking barriers between disci- porting operational work; and (c) review of sec- plines and sectors is a uLniquechallenge. Four di- tor work and best practices preparecd elsewhere menisionisto this challenge are: natural resources in the Bank. and ecosystem management, food security, Ur- LSI), for example, clhaired a task force that rec- banization, and infrastr-ucture. ommlneindedan operational strategy for Argentinia's Natut rail resortrcesanid ecosystemz nanagemnent. provinces that promotes a clearer and more effi- Populationi growtth continues to strain natural cient match of expenditure responsibilities and resources, natural habitats, and ecosystems. revenue authorivy; greater accotintability of public Food securit. Access to, and availability of, authorities to their constituenits; and sustainable food are major problems in many areas of the financinig of investmenits, including participation developing world. Given the limited possibili- of private capital markets. Support was also pro- ties for expansion of agricultural areas, incr-eas- vided for the formulation and implemenitation of ing food security requires that the efficiency of Bank strategy in areas such as the expanding role food productioni within a sustainable biological of local uovernment and private sector participa- and institutionial framework be increased. Effi- tion in infrastructure and its financing in Brazil, ciencv increases, in turn, require promoting the India, Mexico, Peru, South Africa, Ugancda,and developmenit and adoption of new technologies lJzbekistan. and farming systems that increase productivity, Assistance xvwsalso oiven in implementing conserve or enhance the resource base, and are the Water Project foir Municipalities in Low- accessible to poor producers. income Areas in Brazil; teclhniical and institu- Urbanization. Ninety percenit of the popula- tional solutionis in the areas of service levels, de- tion growth that will take place over the next livery systems, and targets were tested. Prelimi- twenty-five years will be generated in urbani nary lessons indicate that water and sanitation areas. Rapidly growing cities pose formidable infrastructure can be more cost effective if challenges for urban management, investment stakeholders are involved at the various stages policy, and institutions. Building on the lessons of the project cycle. The project is finanacinig learned from past successes and failures in Uri- about $1 (0) million in water supply and sewer- ban management, special efforts are needed to age investmiienitsin eleven cities in different regions of Brazil.

Si ( II)N T\v, lvN1A(W WORI V) BANK PRO,iRA\IS 25 During the past year a new study analyzed examined the Bank's efforts to improve the effi- the difficulties encountered in the transition in ciency and responsiveness of urban service de- Ukraine from collective farming to other types livery in developing countries. The study con- of organizations in the wake of that counitry's cluded that three elements are crucial to the land-reform and farm-restructuring program. reform of urban service delivery: a clear division Several constraints were identified, including in- of responisibilities among levels of government; sufficient capital, inadequate market supply of revenue reform (which means, generally speak- farm inputs, and legal and political uncertaiity. ing, that local governments need more financial Given the importance of farm privatization and autonomy to carry out their assigned tasks); and agricultural reform elsewhere in the former So- balancing central regulationi and local account- viet lJUnion,similar studies will be carried out in ability. These conclusionis point to the need for other countries, the Bank to go beyond a focus on the internal ESD helped develop an early warining flood- admi-nistrationi of particular cities; it should also protection componenit in the Yangtze Water emphasize reforms in the relationship between Basin Project in China. It also played an active the cenitral governmenit and local jurisdictions as role in the appraisal of the recenitly approved part of institutionial reforms designed to im- Liepaja Environment Project in Latvia and the prove service delivery Klaipeda Environment Project in Lithuania and The Forest Policy Implementation Review re- provided similar support to the Haapsalu and ported on changes in analytical work and in Matsalu Bays Environment Project in Estonia. lending operations in the thl-ee years following These three projects, all of which involve pollu- the adoption of the Bank's new forest policy. It tion control and environmental management, recommended only minor shifts in emphasis in constitute the Bank's first investmenits in sup- the Bank's wXorkon forests and forest policy. port of the Baltic Sea EnivironimienitProgram. In The review suggested that (a) forest resources the Aral sea region, support is being given in the have to he better targeted to reduce poverty, areas of water-resources managemenit, the envi- (b) forest conservation and utilizationi have to ronment, and water supply and sanitation. be reconciled, and (c) policy and institutionial Reviews of CAS documenits are a major prior- reform are needed to set the stage for private ity. In revieving the documenits, csn strives to investmenit consistent with poverty reduction help Bank operational staff better understand anid environmental protection. the linkages between poverty and the environ- The paper, "EconiomynwidePolicies and the ment and to view social, environmental, cuil- Enivironmenit, analyzed the specific links be- tural, and agricu1ltural conicerinsas more interre- tween economywide policies and environmental lated. Direct contact with counitry departments issues and argued that there are significanit pay- is established in the formative stages of prepar- offis for both the Bank and its borrowers in ating the various (CAsdocumenits, and specific rec- tempting to hetter understand the links and ommendationis on the treatment of environi- act on them. The report concLiuded that removal mental, agricultUral, and infrastructure issues of price distortions and promotion of market are made at that time. To maximnize its contri- incentives and other features of adjustment- bution to the formulation of (AS documilenits, related reforms generally contribute to both ESD focused its efforts on fouLteen countries economic and environmental gains. where its experience and knowledge were deep- "National Environmental Strategies and Ac- est and where there was the most potential im- tion Plans: Key Elements and Best Practice," dis- pact from its contr-ibution. tributed to the Bank's executive directors in Policy and best practice. Policy and best prac- April 1995, was written to assist governmenits tice papers are writteni with practical applica- in preparinig, revising, and updatilig their NEAP'S tion to operationis in mind and incorp-lorate les- by suggesting a variety of analytical methods sons learned from previous policy and best alid best practices. This paper reflected interna- practices work. The recently completed Mullici- tional consultation involving country represen- pal Development Sector Review, for example, tatives and NGOS in LoIndoInin November 1994.

26 THE W(RI.D BANK ANN( A. RoNi(,RT 1995 By the end of fiscal 1995, fifty-seven active work; as suclh, its primary audienice is Bank task IDA borrowers had completed NrAPs or equiva- managers and other Bank staff. lenit documients, anid NEAPs for sixteen IBRD bor- The sourcebook, wvhichdraws on the experi- rowers had either been completed or were in ence, talent, and contributions of more than advanced stages of preparation. NFAPS provide a 200 Bank staff, shares the experienices of se- basis for the Bank's dialogue with borrowers on lected Bank task managers who have used par- environimental issues, describe a counltry's major ticipatory approaches in Bank operations. It environnmental concerns and problems, and for- explores wlhat it means to use participatory pro- mulate policies and actions to address whatever cesses to plan and decide upon implementable problems are idenitified. The borrower is re- and sustainable activities and attempts to an- sponsible for preparing and implementing its swer questionis task maniagers have about using NFAP. participatory planninrg and decisionmakinig. The latest anntual report on the environment- Copies of the sourcebook wvere presented to published in early fiscal 1 996-provides a "greeni more than, 750 development practitioners in accouLnting"of the Bank's lencling portfolio in the Bangladeslh, Denmark, Germany, India, Italy, three years following the United Nations Confer- the Philippines, andcthe United Kingdom. ence on Envir-onimenitand Development, held in Other areas of the fiscal 1995 work program Rio de Janeiro in June 1992. It documenits the les- included (a) completion of a review of inte- sons learned in implementinig the rapidly growVing grated approaches to river-basin planninig, de- portfolio of environnmental loans and the progress velopmenit, and management and (b) prepara- being made in assuring that the Bank's lendilng is tion of "Energy Use in the Transport Sector," environnmentally sustainable. Almost 10 per- whiclh deals with the conicept of energy inten- cent-or some $6.5 billion-of the Bank's sity of transport modes and the role energy poli- cuLMulative portfolio during that period has cies play in affectinig demiiand for transport. been devoted to projects with environmental Progress \vas also made in incorporatinig objectives, more fully the envirotnmental costs and benefits As an aoenicv that finances infrastructure in the econonmic analysis of projects through projects an(d promotes market-based econiomic (a) development of a traininig program, development, the Bank has been a target of (b) mainstr-eaminig environmenital externalities criticism from a number of environrmiental and economnvvide dimenisionls into a selected groups. The Bank listens to such cr-iticism and, number of projects that were in the early stages over the past few years, has built up strong in- of'the project cycle, (c) collaboratinig with other teractionis with environmenital specialists and Bank units in writing or revising operational di- activists. Consultations are now manidatory for rectives that deal with environmenital matters, all enviro-nmenital assessments, and the Bank has and (d) publication of "Monitorinig Environ- benefited from inputs from qualified environ- mcntal Progress," a data-richi publication that mental groups during the preparation of most aims to pr-omote a participatory process in de- of its policy papers. The vice president, Fso),has termining boxy indicators of environml1entally consulted with environimenital NGOS on1a bi- sustainable developmiientare compiled and monthly basis for the past two years. used. ESD also expanded its focus on social aspects Global Environment Facility. The Global En- of development by helping to mainstream at- vironment Facility ((,EF) is a financial mecha- tention to social concerns and participatory ap- nism that provides grant and concessional funds proaches to developmenit, providinig technical to developing countries for projects and activi- support on social issues, and exploring addi- ties that aim to protect the global environment tional areas of- social analysis. One significant and th1ereby promote environmentally sound development in this area wzasthe publicationi of and sustainable development. GFFresources are the "World Bank Sourcebook on Participation." available for projects and other activities that The sourcebook was written to help main- address climate change, biological diversity, in- stream participatory approaclhes into B1ank ternationlal waters, and depletion of the ozone

SI ( I( N rn%() MAIOK Wus 11BANK PROGRANIS 27 layer Activities addressing land degradation, has been malde on a longer-term program to in- primarily desertification and defor-estationi, as tegrate the glohal environment dimension with they relate to the four focal areas, are also eli- the Bank's sector work. Third, Bank-imple- gible fo;r funding.ig mented c1iFoperationis will he equally sublject to The GFF was estahlished in 199 1 as a pilot the Bank's annual portfolio-performanice review. prograni. In March 1994, seventy-tihree partici- Thrlough the end of fiscal 1995, 148 projects pating governments ('participants") concluded worth 3869 millioni had heen endorsed by the negotiations to restructure the facility and re- GEF participanits and the new council. Of this plenish its Core Fund vwithmore thian $9 billion total, sixty-three projects for $558 million were for a three-year period. The governance struc- allocated for World Bank GEF investment ture of the (c; r conisists of a council, assenibly, projects. The allocation of the Bank's GEF and an indepenidenit secretariat headed by a project resources, by focal area, is 5(1 percenit chief executive officer tor biodiversity, 3() percenit for climate change, The Bank has three principal roles in the 1 percent for interinationial waters, 7 percent -LF: It (a) is the trustee of the GEE Trust FuLid; for the reductioll of ozone-depleting substanices, (b) acts as an implementing agency; anti and I percent for multiple thematic areas. (c) provides administrative support for the (,FF Strengthening agricultural research. Durilng secretar-iat, fiscal 1995, the Consultative Group on Interna- As trustee, the Banik is expected to mobilize tional Agricultural Researchi (ve;IAR) vigorously resources for the fund, manage ftuld finanicial pursued its program of reniewal and rededica- resources, maintainl appropriate finanicial tion that had beeni launched at its 1 994 mid records and accouLits, provide for their audit, term meetinig in New Delhi. The program seeks and monitor the applicationi of budgetary and to clarify the vision of the (A(IAR, reform its re- project ftunds. As One of thl-ee implementing search agenda, reform its governance and opera- agencies (the Bank, the UnJited Nations Devel- tions, and secur-e stable financial suppor-t for its opimnentProgramme (I NDI), and the United Na- mission. tions EnvironimilenitProgrammine (tUNvt')), the At a ministerial-level meeting of vX;IAR imnem- Batik is expected to 'draW upOnI its investmenlt hers, held in Lucerne, Switzerlanid, on February experience in eligible countries to promote in- 9-10, 1995, nlew orientation, governanice, and vestment opportuLnities and to mobilize pr-ivate finanvcing arrangenients for the ( (tAR were en- sector resources that are cotisistenit withl (&v oh- dorsed. The (d [AR is ati informal association of jectives atid national sustaitiable developmenit forty-thl-ee governm1aenits,interinationial organiza- strategies." tions, and private foutidatiotis supporting an One of the objectives of the Bank it niecting interiiational research system for agriculture, its responisibilities as impletilenitinio agency is forestry, fisheries, atid tiatural resource manage- streamlinitig and mainistreaiiing the project ment in developing coutitries. It is joinitly spon- cycle of Baank-impleimented GEF projects with sored by the Batik, the I NDP, and the Food and regular tiankproject processitig. Efforts wer-e Agricultutre Organizatiotn of the t.N (FAG). Dur- made dLuriligthe year toward achievitig this ob- itig the past yeat, I INyP was invited to beconie a jective. First, the Bank's exectLtivc board is tiow founrth sponsorinig meniber reviewiiig atid approving Banik-iniplenietited cIT Cote d'voire, Egypt, Iran, and Keniya joitied projects in the same niantier as it does Banik the C:c;IARat the Luceriie meetiig. With Coloii- projects. Second, c;vF processing procedures are hia, wvhich joined a feuv niotiths earlier, total de- tiow aligtied closely with Batik itivestnieiit-pro- veloping coutitry miiembership in the group is cessing procedures. In additioni, operatiotial di- novwfourteen. Meiihbers hailed the broadening rectives have beeti adIdusted to eisure that glo- niembersliip as an iniportanit step towards equi- bal environmetntal externalities are identified table North-South ownership of the research atid quatitified (vhelrever feasilile) atid that glo- system. The delegates also supported efforts to bal envirotimental concertis are addressed in render the system tiiore oplen atid to strenigtheni CASs (wherever appropriate). To this etid, a start its litiks to national research systenis in both de-

28 THL W(KRIL)BANK ANNI A\ RFPv i1 1I veloped and developinigcouLntries. Glohal and the Urban Environment") called for new ap- regional fora of farmers' grouLIs,ulnivel-sities, proaches to meet today's urban clhallenigesof NtOs, anid other groups will be held to ensure econonmicdevelopnmenit, poverty reductioll, and that the system's research agenda reflects the environmental protection. needs of its member cotii tries. The 911)0environ mentalists, developimienit A program launched in mid 1994 uLider practitioers, and policymake-s attending the the Bank's leadershlipto stabilize the ('(,IAR'S three-day conifer-eniceheard the late World Bank finanicesin both 1994 and 19095attracted addi- presidenit I.ewis Preston contfirmthe insti- tional donor-support, ther-ebyenstirilg ftull tution 's dedication to reducinigurban poverty, fuLiding for- the group's core research agencla- wlhich is an essential precondition for reducinio approximately $270(million in each of the two urban environmental degradation. years. Training, workshops, and seminars. Staff Private Sector Development trainin1g plays an important role in EsL)s delivery Developing couLntries increasinigly recogniize of services to support Bank activities. Sixty-ninae the critical role of the pr-ivate sector in develop- separate trainin1gcourses were colIduIcted durinig menit and the need to create the coniditionis for the year, covering the fuill range of Fsi) activities. business to prosper. They are transforming their Enivironimenit-related courses included eco- economies from state-dominated to competi- nomic analysis of enviroiinienital valuation, par- tion-oriented markets. This transfor-mationi in- ticipationi and social assessment, econiomilywide cludes Cuttilng out puLbliCsector investment bet- policies and the environiment, and environmien- ter suited to the prixate sector and stepping uP tal management and planiiiig. Agriculttural finanicial sector reforim. And they are doing seminars in areas such as water resoLur-es,agri- more to facilitate private funding of infr-astr-uc- cultural and rural development, food produc- ture projects; stich investniel1t is crticial for pro- tion and integrated pest management, and rural moting 'rowth and reduCillngpoverty. All this finanice wvereorganiized. Infrastr-uctutie-r-elated requires a more falvorable and comIIpetitive busi- training included courses on private sector par- ness environment, based on thorough legal, ticipatioin, enabling strategies for housing poli- regulatory, and institutionial reforiis. cies, uL-rbanservices dlelivery, and municipal The Bank Group is unlique in its capacity to management. work wvith develo pillng cotintry governments and Buildingpartnerships. Efforts to bluild part- the private sector to promote investment, jobs, nerships with others, both inside and outside growth, and so, to redtice poverty. It has the the Bank, wel-e supported by a wide range of credibility to act as an honiest brok-er-between activities dtirinig the past yeai, including partici- government and business. Its global reach en- pation in the Cairo Conference on Water Re- ables it to gather and disseminiate cross-coutntry sources (November 1 994), organization oftthe experience. It has access to the higlhest levels of Second Annual Envir-onmenitally Sustainable governmieint almost anywlhere. And its advice is Development Conference (September 1994), frequently hacked by substantial investment- and frequent instances of techlical cooperationi throu"Lh its readiness to play a catalytic role, it with other donior agencies and governments, helps attrac.t investment from a variety of oft'l- Agricultural partnerships wverefirmed tip by cial and prixate sources to coLtitries and strenigotheniniglinks with the (INDP,the FAo, the projects that otherwise wsould be regarcled as Internationial Fund for Agricultural Develop- too risky. ment, the agricultuL-al departimicits of regional In fiscal 19.95, the Bank Group's efforts in developimient banks, inter-niatioiaal auriculturil private sector development were foctised on research ceniters, and key NG()S. helpinigcounitries cl-eate a more favorable envi- Speakers at the Second Aninual ESD C'onfer- ronmcnt for private business, catalyzing funding cnce (hvhose theme was the "HumnaniFace of

Si 11(,N TwVT) MI It WF 5 1) BANK Pki i) RANI" 29 for private centerpr-ises(especially ill suppor-t of ahout $2_5 Iilliion in prixate sector in\'estmetits. long-term investments in infrastructul-e), as Well In additioni, World BaLik adjLstnient loans and as directly supportinig private sector develop- credits of 55.3hillion help create a competitive nlent anJ helpinlg dvelopinlg couLn1triesto re- and attrIactiVe businessclimiiate and promilote fi- form and strengthen their finaiLcial sectors.'' nancial sector refcrn. Specifically, privatization remained a central fo- Catalyzing intfrastructure finlance: it brld cus of the Group's assistance, as did b anikinig re- Bank guarantees. Developing counitr-ies ctir- form. At the same tinie, the Banikworked \\ ith rently spend an estimated $?UObillioin a year governments, local instittitionis, and comilmulni- on infrastructure-a figure heyond the mieanis ties (as well as witlh the private sector) to forge of go\ernments and multilateral agencies. East partner-shiips to sustain reforms and manage eco- Asia alone may have to spend more thani $1 nomic development mor-e effectively. The year trillioni on infrastructure between now and the also saw extensive Banik Groutp involvemient in end of the decade. Sutch large-scale, long-term helping some Latin American couinitr-iesdeal fundingigreqtuir-es increasitig reliance on private with immediate crises in their hanking sectors. developers, oper-ators, and financiers. Through The Bantk Group stipports about S2S billion various mcasures and instruments, such as guar- ot private-sector fitinatice a year, or I O percent antees, the World Batik helps goverinments arid of all investment hlv rivate enterprise in devel- entrepreneutrs tap interinatioial anid local capital oping countries. Tle Batik's ftinancial interirne- miiarkets fo r long-terni inifr-astruictur-efunding. diation loans of close to $2 billion a yea-

support $4 billioni in private in vesttiient. I The Rjink COiLIo S1 ir ;lts s.etoi de\eC lop1o11 lt .ltl\ iticm , , , , . . ,,, t ;1~~~c1';it o1

anvdcredit lines, provides $-). billion a year, and de I\opiI lt \\k5 iki ii oiwor niiFpo lncit ofi tl \\eork

w ithi a imuttchibigger imltiplier of ablotit 6i to I, plo-oixll ,n 1otmii,l\V uullJ Rink u1it-0 10tj11i\ thc Finwll,ce - ~~~~iisJ1, pri tie Se-Ctor 1i)ev,~ lel,iit 5 s", prid"I~i.\, the supp-orts roughly S I billion worth of illnvest- C ot n-in, i; .dFioi iduci Ads i,SuirS \i. itce sice pret-i

ment. \11(;A S guaratiltees ar-e curre-ntlyv rtiliilng at 1 11o7the De\ lopment Ft ononii I lmCd Fr,,)lonio t

more than $600i)millioni aLyear, supportin-g vie presidem\, mltl the si\ operetiollnll e'Lionls.

BOX 2-2. INTO THE GUARANTEE MAINSTREAM The Bank's guiding principle in providing guaran- ening of maturity, and hence, the guarantees gener- tees is to cover the minimum risk possible to make a ally apply to later repayments. They can also apply project financeable. To this end, mainstreaming es- to a limited number of interest payments, or a combi- tablished two types of guarantees-the partial risk nation of both. guarantee and the partial credit guarantee. Government counterguarantees are required from Partial risk guarantees are used mainly for lim- the host government when the Bank provides its ited recourse project finance, where lenders attach guarantees. Though the counterguarantee adds an more importance to the revenues and assets of a additional layer of processing, it reinforces the project that the sponsor's credit. Most build, own, government's commitment to the project. The and operate (moo) projects are financed under these counterguarantee indemnifies the Bank for any pay- arrangements. In these cases, guarantees can cover ment it makes under its guarantee. risks associated with government contractual com- Guarantees carry fees. The standby fee, covering mitments to a project, for example, the stability of the period of the guarantee when it is not callable, is the regulatory regime, tariff formulas, and risk of 25 basis points yearly on the outstanding amount nonpayment by a publicly owned utility. guaranteed. WVhenthe guarantee is callable, the fee Partial credit guarantees allocate risks differ- is set between 40 and 100 basis points, depending ently, The W1orldBatik guarantees repayment, but on the risk coverage.All fees above 25 basis points only for a part of the tern of the financing. The pur- are paid to the government, so that the net cost for a pose is to improve borrowing terms through a length- Bank loan or guarantee is the sante.

3(t Ta \\" nWti' B Ns'SAN\i \St R,'i'R It ci The ability of entreprelleurs to obtain debt fi- sector Rockfort Power Project in Jamaica, xith nallcing is oftenl coinstrainied byv lencdei-S' con- \1i(,\ providing political risk insuranice. Several cerns over the risks to project cash floxy neces- guarantees aire cuTrrently in the pipeline, cover- sary to service the debt. These conceins are also ing all re'ions Anid from an initial focus on linked to regulatory and legal issues, sucI as set- power projects, sector coverage of guarantees ting tariffs, the convertibility of revenues to ser- has expanded to incltide w-ater and toll road \'ice foreignl curl-renCy clebt, Lnd the conitractual projects. Most of those in thIe pipeline cover performance of public sectol- utilities or- energy priv'ate sector projects. suppliers. MIch of the Bank's policy ancl sector As part of the main,strearming effort, an infor- work has thus aimed at improvilng the business mation and educlation calmLaign wasJlaunched. env'ironment andc reducing these risks, but until A brochure on Bank guarantees wvas distributed reforms take root, prixate financial maLkets arc widely, and seminars were held outside and in- reluctant to provide sufficient credit without side the Bank. CoLuntr-y missionis explained the official and multilateral gualrantees. For that rea- potential of gutarantees to policymakers and son the Bank moved in fiscal 1 995 to mainL- representatives of bothi pUblic and private sec- streanm its guarantee operations. tors. Ani inter naLl training program on project fi- The World Bank's guarantee instrument xvas nance techIliquLIes and Bank guarantees was also revitalized and amendcled to catalyze the flow set up. of private -apital to infrastl-uctulre projects Financial sector reforn and ininovative lenid- w;hen the executive directors approved a pro- ing for private sector development. To meet posal, "Mainstreaming of GuaLlrantees as an Op- the growing range of demanids for sLippoi-t of erational Tool of the \N'orld Banik." The new private sector investment, the Bank continled guarantee initiative replaces the Expanded in fiscal 15)C) to deliver innovatixe operations to Cofinancing Operatioins (Ft ()) PIogr-amli s)VuLpport local finalncial institutions and markkets. broadeninig coUntry eligibility to aLnyBank bor- Financial sector adljuistmelit loans totaled S1 .2 roxer, modifyin,g fees, and simplifyinig proce- billion, and financial inter-imediationi loans dtires. Though large pools of eqIuity capit.al are amounted to $1 .8 billion. The adjLustmnenltloans potentially available for investinent in prikate helpr create a Competitive financial sector; anil sector infrastructure projects, debt financing has the intermediation loans feed it. Such opera- been constrainied becauIse private lenders are tions pro Vide suLppor-t to a xvide range of finaia- unwilling to assuIme certain sovereignl risks. A cial intermediaries strong enougIl to access World Bank partial risk guarantee helps address groing private capital. this constraint by protecting lenders from these Thel-e has been a steady change in the comil- risks (see Box 2-2). ple\itv of the Bank s financial sector- loans. A Bank partial credit guarantees can also en- texv years ago, most addressed policy issues hanice borroinig terms, as \\(,ll as in(rease flex- such as interest rate anld credit policy. Todav, ibilitv in terms of Curl--enicies ancl marL-kets.In the issuLes are more instituitional, suCh as China, for instaLce, partial cr-edit guLarantees for strengthening banking supervision, regulations. the puLblic sector Yanuzhou anid Zhejialno Power anld accounting. projects drew in private finanicinigwith muLcIh This shift is xvell illustrated b'v the blanking- longer mIatul-ities anc lower costs than WoUld components iin the secIuelIce of financial sectorl have been possible Without the gualraltee. operationis in Nlexico. The $300 millioni Finani- Other completed operations iniclude a partial cial Sector- AdjustImnenIt loan, approved in Junle risk guiarantee for Pakistani's Flbh Pover Project, 1989, focuse(d mainly on interest-rate poli.y, onle of the largest private sector pirojects in the x\hile the $23.6 imillion Financial Sectot- Techni- developing xorld; a pa.rtial cr-edit guarLantee for cal Assistance Project, approx ed in fiscal 1)993, the Levte-Luzon Poxer Pr-oject in the Philip- supported the improvement of off-site supervi- pines; andc a contin''ent loan with characteriistics sion. leanwhile, the $1S000i millioni Finanicial of a guar-anitee for the financing of the prkixate Sector- Restructin ll-' PI0roor-ami,approved in JuLne 1995, im olves the definition of comprehensivce

SI (1 IVt I IMx \.R WxRI I' BxNNKPRI\,RANIS 31 bank-failure resoltution-mechanisms and is * their operations are streamlined to reduce much more detailed in specifying how the ac- unlit costs; counting, auditing, and supervision fuLictionis * their clients are strongly motivated to repay are to be upgraded. their loans througlh the use of peer group guar- The Bank is also moving into new areas-pay- antees antidother incentives; and ments systems and capital markets, for instanice. * their interest rates and fees reflect the full Current and future operations-in China, cost of service delivery. Mauritius, Russia, and Viet Nani-include fi- The Bank allocated (in fiscal 1 994) $2 million nancial and technical assistance to help modern- from EiRo net income to the Grameeni Bank of ize payments systems to reduce delays and risks Bangladeslh-whose highily successful program in transferring funds and to liiik these systems lends pr-imarily to poor womene-to assist simi- to those used for clear-inigand settling securities lar credit programs in other countr-ies. It is also transactions, in the process of estahlishing a microfinance Innlovative operationis in support of local fi- program under the aegis of the Consultative nanicial institutions and markets were also ap- Group to Assist the Poorest tinder- wlhiclh up to proved. The hallmark of these operations is the $30) millioll of [BRD inconme transfers will be provision of support to a wide range of finanacial made availalble to successful microfinianice pro- intermiiediaries strong e nough to access growinig grams during the next two to three years. private capital-except wlher-esystemic risks Making the business environment attractive. cannot easily be overcome. In India, higily In itself, private owxnerslhipis not enough. It is rated banks are now authorized to take foreign real competition among private ownvers that currency cleposits from Indian sources. With creates benefits for all. That requires mobility of assurance ftrom a Bank-funided backstop facility capital, labor, and knowledge, and increasingly, that rollover funding can be obtained even dui- access to technology. Governments can foster ing times of market distress, those domestic this with simple, transparent, and unliformly ap- baniks can extend foreign curr-ency credits to plied incenitives, laws, and regulatiolls-so- exporters wlhose growth demands such invest- called second-generation reftorms. In fiscal 1995, ment. Bank support for these reforms continiued In Moldolva, enterpr-ises can now obtain pre- broadly in four areas: export finanlce froimiprivate finanicial intermedi- * establishing a legal environment that de- aries and trading companies witlh the benefit of fines and enforces property rights and allows a Bank-finanaced local guaralntet unlit that pro- property to be freely traded; vides insurance against chaniges in export regu- * reforming public institutions so that rules lations and other specified political events, for businesses are administer-ed in a predictable MucbI of the future growth (and poverty re- and open way and at least cost; duction) in low-income developing countries * reformin1g regulatory regimes so that prod- will be generated by small businesses that now uct, capital, and labor mar-kets are better have little or no access to finanlcing. The Bank, aligned with the needs of a competitive, out- therefore, has started to xork with institutiolns ward-oriented economy; and that have a track record in lending to rural ancl * impr-ovin1gthe efficiency and customer re- urbani microenter-prises anld whose operationis sponsiveness of various service provider-s (utility are sustainable, replicable, and based on strong companies, for ex-ample). resource mobilization. In Senegal the $40 million Private Sector Ad- Microfinanace programs that succeecd in reaclh- justment antd Competitiveness Credit has been ing large numbiher-sof poor and femzale entrepre- designed to impr-ove the investmiienitclimate and neurs have four character-istics: tacilitate and enhance the private sector supply * their finanicial services are tailored to the responise to a new, favorable exchange rate needs of pooI- entrepreneurs; througlh a liberalized and more competitive en-

31 Ti i. WOR[ FnBANm AN1i'\1 Rim('1i 1 )95 BOX 2-3. FIAS: FOSTERING FOREIGN FUNDING

The ForeignInvestment Advisory Service(FIAs) structuresectors, policies to promotelinkages between advises governmentsthat want to attract more and foreign investorsand domesticfirms in Indonesia betterforeigndirect investment.The adviceis on and the Philippines,and a diagnosisof both policy policies,programs, and institutions that governments and institutionalconstraints to foreign direct invest- use to regulatetheir relationshipswith private direct ment in the 14'estBank and Gaza. Altogether,FIAS investors.In its advice, FUAS tries both to promotein- completedtwentv-six advisory projectsduring the vestor-friendlvenvironments and the developmentin- year. terestsof the host country. The servicesof FIAs are likely to continueto be in Over the years,Fl4s has seen its advice adopted in great demand. An increasingnumber of developing most of the eighty-fivecountries where it has worked. countrieswant to tap the boomingpool of interna- During the year just completed,this adviceincluded tional direct investmentflows. As countriesmake ba- ways for The Gambia to restnrctzureits foreignin- sic improvementsin their investmentlaws and insti- vestment policies,a strategyfor Zimbabwe's invest- tutions, the'vfind that more comnplexissues and new ment-promotionagenicy, suggestions for structuring opportunitiescall for continuingpolicy and institu- investment-promotionagencies in Bolivia and Peru, tional changes.FIAs has been able to help with both and an evaluationof Kazakhstan'sforeign invest- the basic,as well as with the morecomplex, policv ment laws. New initiativesincluded adviceon poli- and institutionalissues. cies governingforeign investment in China's infra- vironmenit, improved conditions for increased privatization as a key componienit, as govern- export opportunities, and increased competi- ments seek to strengtlhein market forces, encour- tiveness through lower costs of production andcl age investment, and ease hudget deficits. In the of maritime transport. And in Bolivia, the Bank past decade, the value of medium-sized and supported regulatory reforms that eased the large enterprises privatized around the world way for private entry into the infrastructure exceeded $300 billion. In Russia alone, more sector. than 15,(000businesses, employing 15 million Private sector assessments for thirty-foul- wor-kers, have been transferr-ed into private countries wer-e either carried out or wer-e in hands, creating 40i millioni shareholders. Today, progress hy the end of fiscal 1995. These assess- more thani half the output of the Czech Repub- ments describe the structure of the private sec- lic, HIunlgary, and Poland is produced by private tor in a country, identify constrainits to its de- businiesses. Chlinia's toxvn and village enterprise s velopment, and suggest economically efficient (which are essentially private) have shlownIthat ways of overcoming hurdles. In several cases small and medium-sized firms can be dynamic (in Colombia, C6te d'lvoire, Egypt, HuLngary, forces for economic growth. Morocco, the Philippinies, and Sri Lanka), as- In Bolivia, the Regulatory Reform mnd Capi- sessment findings have been systematically dis- talization Technical Assistance Project, ap- cussed with the governments and a variety of proved in fiscal 1 995, and a Capital Adjustment private sector participants in order to foster a Credit, curr-enitly under- preparation, will help self-sustaininlg dialogue hetween the two, the governmllenitto privatize firms in sixnmajor Complemeniting the Bank's work in private sectors-telecommuniicationis, electricity, oil a.nd sector development, the Foreign Investmenit gas, railwvays,aviation, and mining-throu,gh a Advisory Service (FAs), run joinitly by the Banlk unliqLueprocess of capitalization. Shares worth and the it, continued to help developing coun- about $2 billion are being distributed to pen- tries shape policies and institutionls conducive sion accouLntsfor all Bolivian adults, stimulatin,g to foreign direct investmenit (see Box- 2-3). savings and the savings ethic. Anotlher- $2 billion Enterprise reform and privatization. More of new ftunids are available fotr investmiient by the thani twenty of the Bank's private sector clevel- privatized Bolivian companies-allowing them opment loans approved in fiscal 1995 had

SI' I\ Tv, NI \ 'RIt WeV'ur F) B\NK PR()( R NS 33 to leverage $6 billion or so of debt, if they need Private sector development and privatization it. Lessons from these and other groundbreakinig mean little unless there is widespread support operations, as well as from the emerging prob- for reform within a country. The Bank has thus lems of postprivatization assistance, are being been supporting private-public partnerships rapidly disseminated and incorporated into the with a view to building consensus on reforms design of future operations. and changing attitudes towards entrepreneur- The Bank was also active in providing direct ship and profit-making. Private-public partner- technical assistance to help governmelnts orga- ships are also being used to identify constraints nize and implemenit their privatization plans. to reform and to generate solutions. In Egypt, For larger activities requiring a sustained effort, for example, local business associations and such assistance was carried out by large teams other groups participated in discussions to de- with substantial field presence, focusing on develop consensus within the country on specific tailed design and implementation. The develop- reforms. ment of this new type of service marks an effort In fiscal 1995, the Bank intensified its efforts to respond more flexibly and promptly to govern- to establish networks and close relationships ment needs and is provided as a complement to with a wide variety of partners involved in pri- Bank operations and the overall Bank-government vate sector development, especially in develop- dialogue. In some of the more complex cases, ing local capabilities and fostering entrepreneur- budgetary funds were leveraged with cofinanic- ship. The $70 million Private Sector Adjust- ing grants of various types ment Credit in Ghana is helping the govern- Dissemination and partnerships. During fis- ment develop and use local accounting and in- cal 1995, a study was comiipleted on the special vestment-banikilng expertise in privatizations. In problems of private sector development and Congo, staff from the Bank's Private Sector De- privatization-and on measures that might velopment Department are providing training be taken to address them-in lower-incomiie and advice to the newvb formed Privatization countries. The report, "Private Sector Develop- Committee on how to build consensus on ment in IDA Countr-ies," concluded that the privatization, prepare privatizationi packages, central challenge w,vasfor governmenit to cut risk and evaluate tender offers. The Bank is also en- and minimiiize transaction costs and instill confi- couraging learning-by-doing and is helping local dence in the private sector. Its recommenda- firms gain access to international expertise. tions: Cut the debilitating losses of the state en- Thus, in Kazakhstan, it is finding a pilot project terprise sector, equip the banking sector to that supports study-tour training so that enter- function effectively and provide needed financ- prise managers can learn from the experiences ing to deservinig enterpr-ises, and reduce barriers of successful firms in the United States and to competition and undertake regulatory elsewhere. reor-m. Over the years, the role of the Bank in infra- As part of the supervision of a privatization- structure has shifted from one that exclusively assistance loan to Russia, a Bank investigationi of involved financing to one that also encourages the privatization process was published in fiscal reform, private provision, and private invest- 1 995." The study concluded that Russia's mass ment. This is especially true for telecom- privatization program was successful in rapidly munications, the sector moving fastest from transferring ownership but that there was an public ownership to private provision and in- acute need for other reforms-in the areas of vestment. As Bank lending to the sector has law, land, corporate governance, shareholder protection, creditor rights, and the social safety 9. Liberman, Ira. and JohnNellis, eds. 1995. Russia:

net. All of these ar-ebeing tackled in onie Wav oir 1)Lblal r nl.nnNli d '9 lvi Creating Pritvate Enterprises and Eftfiienit Markets. Studies of another-, but most urgent is the development of Economies in Transformation Sries, Number 15 Washing- capital and securities markets. tonI, D.C.: World Bank.

34 T E W )RLDB ANK ANNI lA\. Rt i( wRi 1993'5 fallen off, there has been a large increase in symposium, "MarslhallingTechnology for Devel- nonlending advisory and other services.In addi- opmeint,"wlhichi higihlighted the leapfrogging tion, there has been a commensurate increase opportunlities and pitfalls of the technology in the Bank's lending for informatics, which revolution for developing countries. The svmpo- totaled on the order of $1 billion in fiscal 1995. sium provided a unique opportunity for the Many Bankiprojects today have an intformatics council and the Bank to share their complemen- component. tary expertise in technology and development. Increasingly,private sector development calls A similar partnership is being planned with Eu- for closer cooperation with outside agencies. In ropeani technology experts, with the help of the energy, for instance, a framework memorandum European UInion. of understandinigwas reached between the Bank The Bank itself has begun to use technology and the U-JnitedStates-based Electric Power Re- more strategically in disseminatinigprivate sec- search Institute to cooperate in areas such as tor developmenit best practices-for example, clean power technology and renewable energy. through a recent teleconference on competi- Similar memoranda were agreed to witlh the In- tiveness policy, which reached several thousand ternational Enlergy AdministrationI onl enlergy ef- participants in El Salvador, India, Mozam1bique, ficiency and conservation and with the U.S. Re- and Senegal. newable Energy Laboratory. Links withNQ os continued to be strengthened: Meetings in London, the Hague, and Washington covered energy and the environment and rural and re- newvableenergy. In industry anidminin1g, the BankcospoIn- sored-with the United Nations Conference on Trade and Development,the IniterniationalCoun- cil on1Metals and the Environment, and t NFI-an internatiolnalconference on Development, Min- ing, and the Environment.The coniferencepro- vided a forum for nearly 300 participants from a broad range of stakeholdersto share ideas,perspectives, experiences, and solutiolns florsustaini- able mining sector development.The conference proceedingsand results wveresuiimarized on video for wide distribution. Links are being forged with Keidanren, the Japanese industrial association. Links of this type, wlhich are also being developed elsewhere in the world, will help the Bank reach a broader group of business leaders, managers, and professionals and so inform them about the Bank Group's involvement in private sector development. Possible joint activities include thematic seminars with broad internationial coverage and country-focused discussions on private investment issues. The Bank has also teamed Up Wvith the lJS. National Research Council. The first fruits of this partnership came out of a November 1994

SL(CI T}.\xTk,)NoIAisR tr B\k PR,(;RA\Is 35 SI!: I I*]- I / K I: \ ]'I i)" Ei:' I.x )I'I I'n e)

Commitments

World Bank commitments creased greatly in the Europe because country conditions (IBRD and IDA combined) and Central Asia region: Fifty- caused delays in adjustment amounted to $22,522 million eight projects, totaling $4.5 bil- operations in the Europe and in fiscal 1995, an increase of lion, were approved-a $772 Central Asia region. $1,686 million (8 percent) million increase over the pre- The largest borrower of IBRD over fiscal 1994's total (see vious year. funds was Mexico ($2,387 Table 3-1). Commitments by Adjustment lending million for six projects), fol- the IBRD were $16,853 million, amounted to 24 percent of lowed by China ($2,370 mil- while IDA commitments to- Bank commitments, up from lion for thirteen projects, in- taled $5,669 million equiva- the previous year's 12 percent. cluding five "blend" projects) lent (SDR3,829 million). The fiscal 1995 adjustment and Russia ($1,741 million The biggest increase in com- totals include $1,395 million for nine projects). The three mitments was in the Latin in rehabilitation-import loans largest borrowers of IDA credits America and the Caribbean and $375 million in debt- were India ($945 million for region, where fifty-two projects reduction loans. If these six projects, plus one "blend" were approved for a total of amounts had been excluded, project), followed by China $6.1 billion. Comparable fig- adjustment lending would ($630 million for three ures for the previous year were have been 16 percent of the projects, plus five "blend" forty-eight projects for $4.7 bil- total. Adjustment lending was projects) and Viet Nam ($415 lion. Lending volume also in- particularly low in fiscal 1994, million for three projects).

:tJTAiEI3-1'. TRENDS IN IBRD AND IDA LENDING FISCAL YEARS 1993-95

1 + E, .,,(amounts in milions of us d)t

4 1993 - 9959

Sector IBRD "-IDA Total iBRD x. 'IDAt,Tota1 ' . 0 Agriculture 1,918.8 1,347.9 3,266.7 2,233.3 1,6740 3,907.3 1,1539 ,1,495 Education 968.0 1,038.2 2,006.2 1,499.9 658.1 .2,158.0 1,280.6 816.2 . 2,Q9 Energy - . . Oil, gas, and coal 939.8 33.1 972.9 1,202.1 186.2 1,388.3 520.5 141.6 #',666 Power 2,093.0 520.0 2,613.0 1,368.5 - 1,368.5 1,743.5. 439.0 2J182 Environment 11.5 54.8 66.3 640.5 17.3 . 657.8 444.1 . 40.5 48 Financial-sector 637.0 318.1 955.1 1,093.5 411.1 1,504.6 2,435.4 129.3 2!56 Industry 250.0 83.5 333.5 422.7 272.2 694.9 175.0 . 56.2-. 21 Mining and other extractive 250.0 12.0 262.0 14.0 - 14.0 24.8 g 24 8 Multisector 2,980.0 640.2 3,620.2 606.3 815.9 1,422.2 2,295.0 8705 3165. Population, health, and nutrition 706.8 1,104.8 1,811.6 366.0 519.7 885.7 451.3 -'7110 1 16 Public sector management 765.0 230.5 995.5 370.6 322.6 693.2 1,411.2 294.4 1 705 Social sector - - - 130.0 20.6 '150.6 1: 596.5 510 641 Telecomrnunications 264.0 89.1 353.1 405.0 18.0 423.0 -- 325.0 32' I Tourism . e - 130.0 - 130.0 -O.0 '- j. 20.0 .: ,

.,,Transportation -.. , 3,133.1 ':;712.6 :3,845.7 2,162.5 . 1,130.8 .$;.3,293.3 - 2,026.8 104.1 wUrban development -. ';64139.0 "Y 171.2 : .1,310.2 >1K837.0' .- 442.4i . 2179.4'A; 4 1 63.5 186.2 %Watersupply and ., t ' , - -.-A i jf; *K Sf sewerage- :.t-;758.5 395.4 1,153.9 872.0 -103.2 ,. 975.2 ¼ 7303 3092 3

Total 16,944.5 6,751.4 23,695.9 14,243.9 6,592.1 20,836.0 16,852.6 5,669.2 22,52

36 THE WORLD BANK ANNUAL REPORT 1995 Oine piroject, for S20 million, in the West Bank project goals. DisbuL-semiienitsare made prim-na- Riid Gaz.awas appro\ed- The pro-et, fii.Lilted h\ ril\ to cover specific costs for forei "n procure- the 550im illion Trist FuLICIfor Gaza, is filnancing ment and some loc-al expendlituLes. the imniectiate needis of the eCLucation anid hiealthi The procuiremenit ruIles and procedures to be sectors and addresses institutiotnLal development followed in the execution of each pnroject de- objectives in the two sectors. peneds on individual circumstances. Three coni- siderations g,enerally guide the Bank's require- Disbursements menqts:the needl for economy andcefficienc\v in Gross disbursements by the ImIan)to cotintr-ies the executionl of a project; the BaLik's interest, totaled $1 2,(72 million, an incirease of 21 per- as a coopel-rative illntitutiOnl, inl giving all eligible cenit oxer fiscal 19(94's $ 10,447millioll almloulnlt. bidders from developing couLntries and dexel- Disbursement performanice was higher than oped counitr-ies an opportunity to compete in originally ex.pected in the Europe andLCentral providing goods ancl works financed by the Asia region (mostly Clue to adjIustmenCltopera- Bank; andLthe Banlk's interest, as a development tions) and in the Latin America ancl thc Car ib- instittutioll, in enIcouLagilngthe dlexelopment of bleanand East Asia anld Placificregions, helre, local contractors and manuallctuel-r-s in borroxw- althoughL the adi-ustIMenlt portfolio is decliniilg, ing couLntries. In miost cases, inter-niationial corin- dlisbursemilenitsfor investment projects are accel- petitive bidding is the most cfficient method of eratilng. I[)Axdishursements amiounitedL to $5 703 procuremllent. The Bank prescribes coonditionis mnillion,ip Su171 million fr-omthe previous unliderxhich preferetices mrx' be given to (io- year. The imvrease wasparticularlv nlotcxvorthlv 1Cestic or regionial mniuaLLIctLul-er-san wclwhere ill the South Asia regioll appropriate, to dkomlesticcontractors. Disbursemenits, by source of supply Projects Talble 3-2 shoxvs consolidated foreigrn and lo- 1 finaniced h the Worldl Balinkreqtiri-e plrocuIr-e- cal disbursements ftor the ii i) and ili x throuoi nenit fromil foreign and local souL-cesto achiexe the endl of fiscil 1991) and fotr the period fiscal

TABLE 3-2. IBRD AND IDA FOREIGN AND LOCAL DISBURSEMENTS, BY SOURCE OF SUPPLY

(amounts in millions of us dollars)

IBRD and IDA Net advance Foreign' Local disbursements' Total Period Amount °.:, Amoullt Amountn %9.o amount

Cumulative to June 30, 1990 94,556 58 64,317 39 4,408 3 163,282 Fiscal 1991 8,877 57 6,606 42 184 1 15,667 Fiscal 1992 9,038 55 6,807 42 537 3 16,381 Fiscal 1993 9,813 56 7,887 45 -325 -2 17,375 Fiscal 1994 9,010 56 7,442 47 -473 -3 15,979 Fiscal 1995 9,094 51 8,724 49 -97 t 17,720 Cumulative to June 30, 1995 140,388 57 101,783 41 4,233 2 246,404

t Less than 0.05 percerit. NoTE:Details may not add to totalsbecause of rounding. a. Amounts excludedebt-reduction disbursements of $2,160 million in FY90, $313 millioniin FY91, $50 millionin FY92, $515 million in FY93, and $655 million in FY95. b. Net advance disbursementsare advances made to specialaccoun1ts net of amounts recovered(amounts for which the Batik has applied evidenceof expendituresto recover-vof the outstandingadvance).

Si 11i['N THat FWd ,) 9 B \Nk OPn1 ',.I ONs 37 TABLE 3-3. IBRD AND IDA FOREIGN DISBURSEMENTS, BY SOURCE OF SUPPLY (amounts in millions of us dollars)

IBRD IDA

OECD Non-OECD Total OECD Non-oECD Total Period Amount % Amount % amount Amount % Amount % amount Cumulative to June 30, 1990 61,053 86 9,939 14 70,992 18,979 81 4,585 19 23,564 Fiscal 1991 5,018 81 1,165 19 6,183 1,804 67 889 33 2,694 Fiscal 1992 5,116 76 1,585 24 6,701 1,541 66 796 34 2,337 Fiscal 1993 5,104 73 1,873 27 6,976 1,786 63 1,050 37 2,837 Fiscal 1994 3,995 73 1,462 27 5,457 2,209 62 1,344 38 3,553 Fiscal 1995 4,584 78 1,312 22 5,896 1,987 62 1,210 38 3,197 Cumulative to June 30, 1995 84,870 83 17,336 17 102,206 28,306 74 9,875 26 38,181

NOTE:Disbursements for debtreduction, and netadvance disbursements are excluded. Details may not add to totals becauseof rounding.For consistency of comparison,Mexico is includedas an OECDcountry for all periodscovered by this table. iMexico becamean OECD member in May 1994.

1991 through fiscal 1995. Advance disburse- Appendix 10 provides a summary listing of ments consist of payments made into special ac- the amounts paid to (-Ec[) and non-o)ECDcoun- counits of borrowers, from wlhichi funds are paid try suppliers in each fiscal year from 1993 to to specific suppliers as expenditures are in- 1995 under investment projects. Amounts dis- curred. Because balances in these accounts can- bursed are compared with respect to significant not be attributed to any specific supplyinig categories of goods procured from foreign sup- COulltl-yuntil expenditures have beeni reported pliers. The extent to which oECD and non-oECTO to the Bank, these are showni as a separate countries participated in supplying these major category categories of goods in each of the past three fis- Table 3-3 provides details for foreign dis- cal years is also compared. bursemenitsby OEC) and non-(-CDcEcountries for In all these tables and appendixes, IBRD figures the IRRD anid IDA separately. exclude disbursements for loans to the IFC and Appendix 7 shows disbursements made in fis- "B" loans. IDA figures include Special Fund and cal 1995 by the IeRD and IDA for local procure- Special Facility for sub-Saharan Africa credits. menit by current borr-owinig countries and dis- Disbursements for Project Preparation Facility bursemenits made for goods, works, and services advances are excluded for both the lBRD and IDA. procured fromiithem by other Bank borrowers (foreign procuremenit) for projects funded bv TechnicalAssistance the Bank. Technical assistance is a vital ingredient in the Appendix 8 shows the amounts disbursed transfer of technology and build-up of capacity from the I3RD and IL.A separately for foreign pro- among the Bank's borr-owing memiiber countries. curemenit of goods, works, and services from se- Most technical assistance is provided through lected member countries in fiscal 1995 and cu- the Bank's lending operations; however, a sig- mulatively through fiscal 1995. nificant volume is generated through other spe- Appendix 9 shows the proportioni of foreign cial programs, financed mainly by grants and disbursements from the 1ERD and IDA for specific trust funds. categories of goods and services provided by se- Loan-finianiced technical assistance in calendar lected member- countries in fiscal 1995. year 1994 amounted to $2.6billion, Of this

38 THE W( 'RlD BA\NKA \NI AL. RF( I'I 1995 amouLt,$2.2 billion funded components, while exercise is under way to help staff in developinig $400 million was accounted for by nineteen performanice indicator-s for all operations, in- freestanding projects. cluding technical assistance). More work is Fifty-two percent of technical assistance com- needed in the specific area of monitoring out- ponents -were intended for capacity building comes rather than inputs. Considerable varia- (including training). The remainder went for tion was found in the quality of supervision implementation support (41 percent) and planning, therebv- raisinig a questioni about policy support (7 percent). prompt and effective interventioni with respect The Latin America and the Caribbean region to lagging projects. The assessmenit also found used the most technical assistance ($695 mil- that xvhile strong efforts were being made to en- lion), followed by East Asia and Pacific ($591 hance borrower involvement in project objec- millioni) and Europe and Central Asia ($246 tives and design, many operationis did not pro- million). vide clear eviden-ce of borrower commitment. Indonesia was the single largest user of The Bank and the United Nations Develop- technical assistance ($300 million), followed ment Programme (ux%sDP).The year showed a by Mexico ($293 million) and Russia ($213 continued, sharp declinie of new funding by the millionI). iUNDP for Bank-executed projects. This decline The Bank's Project Preparation Facility pro- will likely continue, as the I INE's executive vides advance funding to borrowers to prepare board now prefers national execution. projects that may be financed by the Bank. In The Bank and the UNDP held several meetings 1994, the Banik made 118 advances under the durinlg the year on ways to enhlanlcetheir- collabo- facility for a total of $80 million. Fifty-eight ration in areas such as technical cooperation, aid percent of the advances, accountinig for 45 per- coordination, the environmenit, and capacity cent of the total volume, went to the Africa building. Together with the Development Assis- region. tance Committee (DAC) of the Organisation for In December 1994, the executive directors Economic Co-operation and Development agreed to raise the facility's commitment au- (OECD), the Bank and the I NDP organized a high- thority from $270 million to $250 million. level seminar, at which it was decided to establish The Institutional Development Fund provides a network to follow up on specific issues of tech- grants to member countries to undertake inno- nical cooperation. It was also agreed that the three vative actions in institutional development/ institutionis would jointly publish a semiannual capacity building. In 1994, the Bank awarded journal whose target au dience is practitioners a.nd ninety such grants, amountinig to $22.8 million, researchers in the field of international technical to fifty-four countries. cooperation. The first issue of "Internationial Jour- Technical assistance "quality at entry." Dur- nal of Technical Cooperation" is scheduled for the ing the past year, the Bank undertook an assess- summer of 1995. ment of the quality at entry of those teclhnical assistance operations that had been approved in Cofinancing fiscal 1994. During fiscal 1995, the vice presidency for The assessment was mostly positive, althoughl Cofinancing and Finanicial Advisory Services shortcomings were also noted. (CFS) continiued to play a catalytic role in facili- Significant improvement was found in incor- tating the flow of financial resources to devel- porating lessons of experience from completed oping countries by carryinig out various activi- (and some ongoing) operations. Furtlher, project ties related to cofinancing, project finance and design was found to be less complex in the guarantees, private sector development, and newer projects, and improvements were noted technical assistance financinig. in projects' readiness to be implemented. These activities consisted of operational sup- Notable progress had also taken place with port and technical assistanice financinig to the regard to the use of performance indicators for Bank's country departments and to borrowing judging implementation progress (a Bankwide

S(t 7I(\ 'li-fRLF WVCRL[l B,A\' OP RAMI>NS 3 Q TABLE 3-4. WORLD BANK COFINANCING OPERATIONS, BY REGION, FISCAL YEARS 1994-95

(amounits in millions of us dollars)

Sourceof cofinancing Private (of which Projects Export Total ILRD WN'orldBank Total cofinianiced Official credit Private guarantees) conitribution project Regionand year No. Amotint No. AmoLint No. Amount No. Amount No. Amotint IBRD IDA costs Africa 1994 35 1,594 31 1,539 - - 8 55 - - 8 1,649 3,700 1995 29 1,099 27 1,088 - - 3 1I - - 65 1,069 3,095 East Asia and Pacific 1994 14 1,948 9 515 1 92 7 1,341 (2) (157) 1,899 635 7,262 1995 11 1,691 9 913 2 348 5 430 (1) (64) 1,336 184 5,962 South Asia 1994 9 1,584 9 1,259 1 300 1 25 - - 474 949 8,876 1995 6 998 6 417 1 50 1 531 (1) (240) 466 349 2,905 Europe and Central Asia 1994 21 1280 22 901 3 1 5 205 - - 2,253 45 4,965 1995 37 839 35 607 - - 4 232 - - 2,482 424 4,870 Latin America and the Caribbean 1994 25 1,513 22 1,377 1 2 5 133 - - 1,740 265 5,545 1995 22 3,028 21 3,007 - - 2 21 - - 2,773 221 7,490 Middle East and North Africa 1994 9 785 8 654 1 23 2 109 - - 561 100 3,216 1995 9 593 9 593 ------559 53 1,761 Total 1994 117 8,704 101 6,245 7 591 28 1,868 (2) (157) 6,934 3,642 33,563 1995 114 8,248 107 6,626 3 398 15 1,225 (2) (304) 7,681 2,302 26,082

- Zero. NOTE: The number of operations shorwn under different sources add up to a figure exceeding the total number of cofinanced prolects because a number of projects were cofinanced fromimore than one source. Cofinancing data are reported by the fiscal year in whichi the project is presented to the Bank's executive board. Details may not add to totals because of roun1ding. a. These Jigures include colinancing with untied loanisfrom the Export-Import Banik of Japan.

meimlber conLI[tl-ies hi> also Coordilnated understandinogbetween the Bank and doniors cofinlaniinc efforts aLimonigdonor governments, thalt enierges throughl cofinancing operationis in official dev lopment aid agencies, and expor-t respect of country and sector objectives and creedit a-encies. strateoies Ultimately, this iniproves the overall The Volum11e of cofinanc ing anticipated in SuIp- efficienlcy and effectiveness of aid flows and pot t of \Vorld Bank-,assisted operations in fiscal strengthens the Bank's partnerships w ith some IQ9)'9dec lined maroginallyto SS.2 billion fr-oml the of its mci)st important supporters.

S8.7 billion tilat hadbeen mobilized in tile previ- I., t C ciit'itiit ed tO PIri\ ulte 'c' it told ' JtodlgImIet. I

ous year (see Talble3-4). Not reflected in the ii, d t:n I tli ciigof asj' lrt c'S, Jlt described cofinancing voltiuies, howv\er, is the better nIo pZIga *() of tlliA.liAmml Report.

411 [oF: W q'c 1' b\'h \\ A\m .: Ri'' I1)1 Official cofinianicinigflows of $6.6 billion in- billion as compar-ed with $437 million in the creased by $381 million and still accounted foi previous year) and finanicial intermediation the largest source of anticipated cofinancing loans ($987 million, compared withi $416 mil- support. The volume of export credits and pri- lion in fiscal 1994). vate cofinanicinig fell from levels realized in fis- During fiscal 1995, the Banki made a special cal 1994.' The Southi Asia and Europt and Cen- effort to update existing cofinancing frame- tral Asia regions both realized an increase in the wvorkagreements to simplify processing proce- flow of private sector financiig. In terms of dures. It also sougilt to improve the consulta- lending instruments, investment loans attracted tion protess with its major cofinancing the largest volume of cofiiianicing support, fol- partners. The maini objective of this exercise lowed by structural adjustmenit and finanicial in- wvasto makie the consultationi process more ef- termediation loans. ficienit by bettel- matching the cofiniancing re- Japan continiued to be the major source of quiremenits of Bank-assistecl projects withi the bilateral cofiniancing. The cofinanicinig activities cofinancing interests and capacities of donors. of its Overseas Economic Cooperationi Funid During the year, the Banki held eighteen formal (OiECF) anid Expor-t-Import Bank (JExIm) ac- cofiniancinig coilsitatioins with represenltatives counted for the largest percentage of bilateral of fifteen donior agencies. support to all Bank-assisted operations, reaching Sinice fiscal 1988, donors have been support- a total of $1 2 billion for seventeeni projects ap- ing the Bank-led Special Program ot Assistance proved during the year, or 46 percent of all bi- (sPYA), whvhichmobilizes quick-disbursing hal- lateral cofinancing. To facilitate and expedite ance-of-payments support for economic re- the processing of smaller cofinanicinig operationis form programs in the low-income, debt-dis- (cofinancinig amounts below $5() million), tht tressed couLitries of sub-Saharani Africa. To Bank and the JExlm agreed on a streamliniiiedi date, untlel phase thl-ee of the program, seven- set of processing procedures. DuLringthe year, teen donors have pledged $6.7 billion in sup- two operations were cofinaniced followving the port of economilic reform programs.3 streamlined pr-ocedures. Six more projects were To improve the effectiveness of techlinical as- idenitified as potential candidates for the near sistaLice activities financed withi trust-funid re- future. A similar agreement wviththe ()LYCF is sources, the Banki introduced some importanit uLider discussion. policy changes during the year. They included: Other large bilateral cofinancing support * To give recipients full owjner-shiipof activi- came from Germany ($289 million equivalent), ties finaniced withi trust funds, recipient imple- France ($264 million equiValent), the United mentation of countryF-specific technical assis- Kingdom ($1 84 million equivalent), and the tance will become the norm over a two- to ULnitedStates ($148 million). three-year period. Total cofinancing expected from multilateral * To return to the principle that trust-fund financial institutionis amounted to $3.9 billion, resouL-ces are not to be used to cover expenses The Inter-Aimier-icanDevelopment Bank, with that have been funded traditionally by the $2.5 billion of planned cofinanciig, conitinued Bank's administrative budget, such resouices to be the largest multilateral tofinancier and accounted for 63 percent of the total. Other sub- 2 CittinanciFLg fignires, hIlch repi-essentplannied stantive cofinanicingsupport came from the cotnllhuancing-not actual colmnitmllts by cofinanciers---are Asian Development Bank, the Europeani Invest- ai1ttired at thle timle ot presenitation to the \tec\ tlve dlire,ctors of ~ic I) II;RI ,I11d I vs operation. The amiounts ot ment Bank, and the European Bank for Recon- offi1'iit ct I11. InIL. ii1 03 st Aasesl, . firill Cornitmllents struction and Development. kv that stage: e'cport credItS .and private .oftiniancii, As in previous years, the power sector at- howure rc.are generlally onll estimi.ates, since such tracted the largest aimounlt of cofinancing ($1-5 cotiiill.siitgI us .ictal;l a ged a.s rec1tiired for priu;ect - In3pleltlentatioii and gets firmiedl upl a rear or tw%oafter billion as compared xvith $2.1 billion in fiscal )l3oardappl ouJl.

1994), followed by multisector-operationis ($1 .1 For details, see pIagC

SEj I ION TiiREI WORLD BANK OPERATIciNs 41 xvilliino longer he used to finanice core Bank during the year, pur-suinig closer coordination activities, with these agenicies and with the Berne UIfnion To facilitate the use of trust ftnqds, negotia- to develop greater participation in Bank tions will be carried out with donors to simplify projects. Efforts are contiutinig to improve coor- the procedures for their use, including uityinig diniationi with export credit agencies, with spe- and loosenin,' the restrictions on the use of trust cial emphasis on project-finance transactiois. funds to the extent possible. During the veari Fs carried out detailed dis- Portfolio Performance and Management cussions with majorl donors on the Bank-'s ef- Early in fiscal vear 1994, the executive direc- forts to improve the management of tru[st funds. tors of the World Bank endorsed a detailed plan Donors expressed broad suipport for the revised of action designed to make the Bank more ef- policies. fective in obtaining results on the ground in Despite Constlrainlts on nation1al aid buckets borrowing countries. donors continiued to increase their funding in The variious initiatives set in motion to improve support of technical assistance trust-fund pro- portfolio performiianice represented an important grams. During the yeai; the txvo mainL programs, shift in the Bank's businiess practices-from wlhat the Policy and Human Resoul-ce Developnienit xvasperceived to be an excessive preocctipation (I'HIRD) Funid-finaniced by Japan-and the Con- with lendinig targets and Volumes to an overriding sultaIt Trust FuLndcs(( TF)-provided by manzi conicerin vith the development resuLltsin the field donor-s-expanded their activities, of Bank-stipported operatiois. Th ci-HRm)progranm provided grant assistance A reviewnof the first year's experience in to a broad ranngeof project-related activities, implementing those initiatives found that sig- with special emphasis on project preparation. In nificanit progress had been made. It also con- fiscal 1995, the fundc approved 2T70granits cludedi that progress had been made in strength- amiounting to $1]7 millioni, as compared with eninig the couLitry focus of the Bank's develop- 923 grants for 5141 millioniin the previous ment assistance and that steps had been taken year, for the preparation of pr

4? THL W\)RI'i BA-w ANNtI'i Run v,19)95> criterion, withl implementation progress (ru) and using mid term-review and supervision- servinig as a secondary criterion. This improved mission findings to pursue mid course correc- rating methodology was developed to increase tions (project restructurings, for example) to in- the realism and transparency of performance crease the likelihood that projects will achieve ratings, as wvellas the quality and intensity of their DOS. the review pi-ocess. The methodology used until An indepenidenit assessment of' experience the current year had been strongly oriented to- with the Bank's main portfolio-maanagement wards phvsical and financial inputs, and at- tools-country-portfolio performance reviews, though a rating on the likelihood of achieving mid term reviews of operations in progress, and developmenlt objectives was also assigned, it project restructuring-was provided by the Op- was subsumlied under- the rating for overall erations Evaluationi Departmllenit's seconld ann1ual implementation status. However, the change in review of the ARI'P. It recommended that the rating methodology increased the difficulty in Bank pay particular attention to the extent of coming up withl a trend analysis. In principle, coverage and targeting of such tools. It also rec- the chaniges should lead to more projects being ommenided that future reviews by operational rated as unsatisfactory or highly unsatisfactory staff of regional and counitrv portfolios enhance than otherwise would be the case. In practice, their strategic focus and include monitorable however, it is not possible to disentangle this ef- goals for improving portfolio managemiient and fect from that of other factors, performance. The review found that of the 134 country The oi)r) review ftounidthat operational staff portfolios, those in only twenty-one countries, had made good progress in installing the miore including thirteen countries in nonaccrual or transparent systemiifor rating operational perfor- civil conflict, had a very low likelihood of mance, while piloting fturtlher enhancements. achievinig project Dos, wlhile seventy-two had Although the new system had quite pro- a high likelihood of achievinig development ob- nouniced effects in some regions, its aggregate ectives. effect on the realism of performance ratings According to the report, the Banik further instill appeared quite small; a substantial gap tensified its efforts to promote a strong imple- remained between ratings of projects under mentation culture during the year under review, implementation and ratings of the same projects Supervisioni intensity per project increased by 8 at their completion. Following deliberations by percenit, and all six operational regions are now the executive directors' Committee on Devel- assigninig high priority to implementation and opment Effectiveness, a streamlined manage- obtaining results on the ground. ment process, reflecting OEL) recommendations, At the regional level, a numiiber of steps were has been put in place to address the problem. taken to enhanice quality at entry of new opera- At the conclusion in fiscal 1994 of the tions. They included (a) requir-ing up-front ac- Bankwide review; of projects involving involun- tions that are critical to project success before tarv resettlemenit, the Bank's management the project is presented to the board; (b) avoid- agreed to continue monitoring the status of' the ing excessive complexity in the design of new resettlement portfolio through the preparation operations; (c) strengthening borrower owner- of a special annex in the fiscal 1995 ARIPP.The ship and ben-eficiary participation; and (d) using annex placed special emplhasis on new projects pilots to test new approaches and determinie with resettlement added during fiscal 1994, on wvhatprojects should be followed-up on a larger new initiatives being taken with borrowers and scale. within the Bank to improve capacity and perfor- The regions also continued to strengtheni mance on resettlement, and on the status of portfolio-management practices through various implemenitationi of the entire resettlement port- measures, including involving borrowers more folio during fiscal 1994. closely in everv aspect of portfolio management It founcd that all the new fiscal 1994 projects met the basic planning requirements for re-

SFr T[)N\ 'IRrFLWOR( BANKORF:RsATi,rs 43 settlement. Specialist su;pervisioin was at a high borrower's institutional developmenit, borrower- level. Bank couLntry departmenits, especially performance, and Bank performance. The GEF) those witlh the largest resettlemenit portfolios, also evaluates country-assistance programs and began to elaborate strategic approaches to the the 13ank's policies and processes. Evaluation issues involved. More dialogue on borrover findings are maintainied in a developmiienit-per- policy was held. Training courses were ex- formance data base, built up over txenty years, panded in sever-al borrower CcouLntries, which now covers more than 4,000 operations. Considerable progress was made at the "front In fiscal ] 995 ()EL)reviewed 275 completion end" of projects, the annex concluded. It noted reports and audited 123 completed operations. that implemiienitationstill presenits significanit clhal- The cumnulative total of Bank operations sub- lenges and that, because implemenitationi is the iectecd to ex post evaluation reached 3,888 at the borrower's responsibility, resettlemenit policy dia- end of the fiscal year. logue, in-country capacity building, and creative In impact evaluations, the POM,assisted by financing of resettlement will remaini the critical agenicies in borroxver countries, analyzes points for improved implemiienitation, projects five to eight years after the close of loan disbursements. These evaluationis assess Operations Evaluation the economic worth of projects and the long- Operations evaluation at the World Bank has term effects-intended and uninitended-on a threefold mandate: to measure how farl ancd people and the enviroiinment. The o()IDproduced how effectively the Bank's activities are achiev- eighteeni impact evaluations in fiscal 1995. ing their desired results; to drawv an(d dissemi- Portfolio management. The ot-E)continued to nate lessons for application in policies, opera- strengtheni its activities in support of improved tions, and processes; and to help Banlk units and portfolio maniagement, outlinied in last year's memiibercountries to improve their owvnevalua- AnlnuaxcilReport of the World 3ank.New initia- tion capabilities. tives in fiscal 1995 included: The Bank's indepenidenit evaluation ulnit, the * Country-assistance reviexvs. To support the OEL),reports to the Bank's executive directors Banik's tocus on the country as the unit of ac- thlrough the director general, operations evalua- counit for the dlesign and management of its as- tion (Lco). The orL rates the development ef- sistance, the WE)began a series of couLntrv-assis- fectiveness of the Bank's activities according to tance reviews. These reviews assess the their (a) relevance to specific counltry- and relevanice and efficacy of the Bank's overall sectoral assistance strategies anid to the Bank's country-assistance strategy and the effectiveness overall goals; (b) efficacy in meetinig plannled of the various instrumenits of assistance. They objectives; and (c) efficiency in Usin1gresources. make recommnlenidationisfor future policies and Its woorkprogram evolves in response to changes actions. in the development agenda and the concernis of * "Quality at entry": Econiomic Analysis Task the Bank. Results and recommendations are re- Force. The 1992 Task Force on Portfolio Man- ported to the executive directors anid fed back agemenit pointed out that the Bank tended to be into the design and impltmentation of policies overoptimistic about projects at the appraisal and lending operations. stage. Following up, a joint task force of the G)L Comprehensiveness and rigor. All lending and the Operations Policy Department helped operationis are evaluated on completion by the to design an action program to improve the eco- regional offices responsible for thenm; borrower nomic analysis of projects. agencies contribute to these completion reports. Evaluation studies. The GrEDs evaluation Thle GEE) reviewxsall completioni reports and studies examine Bank processes and broader de- produces performiance audits ftor a representa- velopmenit issues, includinig policies and experi- tive sample of complteted operations. Every' ence in couLitries, regions, and sectors. In fiscal completed lending operation is rated for its 1995, OEL) sent ten studies to the board. Topics overall outconme, sustainability, impact on the includced experience with irrigation; poverty

44 THE WvoRLL)BANK ANNIHAL RNiRI' 199)59 assessmenits; industrial restructurinig; lending integral part of the Bank's country portfolio- for electric power in Africa, conditioniality in management work and of its support For public lending for forestry; and the social impact of sector-management reform. adjustment. The oLD responided to requests for advice on Disclosure and outreach. Growvinigpublic evaluation capacity development firom Argen- conicern with development effectiveness has led tina, China, Colombia, IndonLesia,Morocco, Sri to dcemands for thc evaluation functioni to he Lanka, Tunisia, and Zimhbabwe. more transparent. In November 1 994 the Bank's executive directors further exp,anded the Implementation of the Bank's Bank's disclosure policy to include colintrv and Disclosure Policy sector-evaluationi studies and impact-evaluation In August 1993, the Bank took a number of reports. steps to increase the range and depth of infor- Responding to a request from the executive mation available to the public. The revisions to directors' Committee on Development Effec- the more restrictive policies of the past were tiveness, the Ot) began expandinig its publica- undertaken in the belief that the sharinig of in- tions program. In fiscal 1995 it published formation is essential for effective and sustain- Eutiluation Results for 1993 and five book-lenigth able development. Sharinlg stimulates debate studies. For decisionmiiakers and development and broadens understanding of deve lopment is- practitioners, it publislhed three "Lessons & sues and facilitates coor-diniationiamong the Practices" and tweenty editions of "Precis." many parties involved in development. It also The OEL gave seminars wvithiniand outside the serves to strengtlheni public support for ef'forts Bank to discuss evaluation desi,n and results, to improve the lives of people in developing and issues raised by evaluation findings for the countries. management of ongoing programs. Evaluation Experienice with implemaeniting the disclosure and the work of the orLDwere systemaLtically policy shows that the Bank has madie substanitial featured in training programs for new Banlik progress and that it is now clearly a more open staff organizationi than it had b een. After initial start- The OED organized the first international coIn- up problems, Banlk staff have responde d well to ferenece on development evaluation, xvith con- the demands of the new policy; government of- tribtutions by distinguished evaluators, academ- ficials have worked cl0oselVand constructively ics, and development practitioners from a broad wvith operationis staff to ensure its implementa- span of countr-ies and types of organizations. tion, contrary to earlier predictionis that bor- The papers are being published in a professionial rower g(overnments would find it difficult to journal. adapt to the new policy; and the number of The OLD participated as an observer in meet- complaints from the nongovernimenital organiza- ings of the DAC Expert Group, anid evaluation tion (NC()) commulity about Bank un1respon- staff attended wvorkshops and seminars with siveness has lesseneld to SucLh an extent that they evaluators from other inter-lnational organiza- are now very infrequent. tions and donor couLn1tries. To meet the Banlk's commitmjienit to the prin- Support for evaluation in borrower cooun- ciple of global accessibility to Bank information, tries. The Bank's executive directors and man- a Public IniformiiationiCenter (rzcj)was opened at agemenit adopted recommendations by a the Banik's headquarters in January 1 994, and Banikwide Task Force on Evaluationi Capacity V(Cfield offices w-ere stibsequenitly opened in Development in the public sector of borrowiing the Bank's London, Paris, and Tokvyooffices. countries. For the Bank, the recommendations Each office has a public reading room equipped entail taking a more proactive approach to sup- wvitha workstation connlected to the Internlet. porting evaluation-capacity development, re- To reach clients without access to the Inter-net, garding evaluation-capacity development as anm a cataloguc of available docuM1ent titles is distributed by mail and is updated monitlily by fax.

S()N T[IRFI W\'\ [RU BANIK OPFRATIONS 45 World Bank resident missions are an impor- The panel complements the Bank's existing tant componenit of the vic network and are criti- systems for quality control in project prepara- cal in ensuring that relevant documents are tion and implementation. As such, it helps the available to affected people and local organiza- Bank's executive hoard in its governance of the tions in borrowinig countr-ies. Each resident mis- Bank and does not affect the president's ac- sion stocks a full set of publicly available docti- couLntability to the executive directors for the ments for its countrv (available fi-ee of charge) management of the Bank's operations. The and provides a point of access to any of the functionally indepenidenit panel, which opened other informationi available throughout the for business in the first week of September Bank. 1994, reports directly to the Bank's executive As of December 31, 1994, the i)ncoffices had board. received a total of ahlmost 17,000 requests-an On the first request presenited to it-one that understatemenit of the true number because concerns the planned Arun III Hydroelectric (a) visitor registration at a P[1(cis voluntary, Project in Nepal-the three-member panel (b) many re(luests are addressed to and hanidled unanimously found that apparent violations of directly hy country depar-tmenits and resident IA policy existed and recommended fturther in- missions, and (c) data on requests serviced by vestigation in three areas: environmenital assess- resident missionis are not availahle. During cal- ment, involulntary resettlement, and treatment endar 1994, a total of 1,928 documents were of indigenous peoples. The Bank's executive di- made available to the public. Their ntimber in- rectors subsequently authorized the panel to cluded 674 Project Informiiation Documents, conduct the investigation. which provide details on every project in the The Inspection Panel completed its investiga- Bank's pipeline, and 601 Environmenital Data tion in June 1995 and sent its report to the ex- Sheets, which are prepared and updated quar- ecutive directors and to the president of the terly for all projects in the lending program. Bank on June 21. The panel's report took into The greatest demand for information came account the remedial measures proposed by the from the business commtunity. Public agencies Bank in the three areas where the investigation conistituted the seconid largest group of request- was authorized by the executive directors. ers Only 2 percent of visitor and telephonie re- In April 1995, the panel informed the execu- quests came from the NGO community, which tive directors that a second request for inspec- has apparently more frequently satisfied its needs tion had been made. The panel subsequently re- directly from the Internet, resident missions, or di- jected Ithe request. Two additional requests for rect contact with country departments. inspectioni-related to the Power \VI Project in The Bank is curr-ently intensifying its disclo- Tanzania and the Rondonia Natural Resources sure efforts by preparing a formal traininig Management Project in Brazil-were registered module for new Bank staff that explains the ra- in June 1995. After receiving a response by tionale for the disclosure policy, its implications Bank management to the claims made in the for operational work, and the procedures in- request, the panel will make a recommendation volved in carrying out the policy, in August 1995 to the Bank's executive directors on wlhether or not the claims should be The Inspection Panel Becomes Operational investigated. An indepenident Inspection Panel was established in fiscal 1994 to receive and investigate complaints that the Bank had not followed its own policies and procedures with respect to the design, appraisal, and/or implementation of a development project that it stipports.

46 THF WORLD BANK ANNI Al RrR()RT 19905 50 YEARS OF WORI.i) BANK OPERATIONAL. HIGHLIGHTS

1946 March 8-18 Inaugural meeting of boards of governors of the World Bank and the International Monetary Fund is held at Savanniiah,Georgia. Bylaws are adopted, executive directors are elected, and Washington, D.C. is chosen as the site of the two new institutions. The Bank's subscribed capital stands at $7.67 billion.

Savannah.Georgia, March 1946;the : inauguralmeeting of the Bankand the International l MonetaryFund Photo:IMF archives. . ..

May 7 The first meeting of the executive directors is held, with the director representing the United States acting as temporary chairman. He continiues to do so until the election of a president. June 18 Eugene Meyer takes office as the first president of the Bank. Juine 25 The World Bank formally begins operations. September 27- First anniual meeting of the board of governors of the World Bank is held October 5 in Washington. The Bank has thirty-eight member nationis, and its staff totals seventy-two.

1947 March 17 John .1.McCloy becomes the second president of the Bank. May 9 Executive directors approve the Bank's first loan agreement, with France, in the amount of $250 million, for reconstruction purposes. In real terms, it remains the largest loan ever made by the Bank. July 15 The IBRD makes its first bond offer on the U.S. market in the amount of $250 million. The offering is substantially oversubscribed, and the bonds immediately sell at a premium over the public offering price.

Fii1'\ YLAIL\I )F OPERATIOI\AI HIGHLIGHTS 47 1948 Mairch25 Executive directors approve the first loan agreement withia developing country--an operation in Chile, in the amouLitof $13.5 million for hvdroelectric development. 1949 July 1 Eugene R. Black, who had beenithe executive director for the United States since Nlarch 1947, becomilesthe third prcsidenit of the Bank.

EugeneBlack (left), the Bank's third pr-esident, at the annualstafft. picnic.(identity of the personon ~& the right is not W known.)y,a Photo World Bonk. fl v

luly-Novetn? ber TlheBiank launlihes its first comprieliensiveeconomiic sirvesV-of Colomrbia'seco- nlomilicresources and necds-xvith a view to indicating the most promising lines of development, the prinicipalobstacles in the way,and the means by which they might be surmounted.

1951 May 23 The ii3Rwo'sfirst public offering outside the United States is placed: a £5 million issue offered on the LIondonnmarket.

48 Tl IFWN(VRI I) BANK A,N NAI[Al RP I I '1(I5 1952 August 13, 14 Japan and the Federal Republic of Germainybecomne m bierncrsof the Bank, bringing the Bank's memberslhipto fifty-three. September The first reorganization of the Bank is carried out. Three geographical Departmllents of Operationls (Asia and Middle East; Europe, Afi-ica,and Austr-aLlasia;arid Western Hemisphere) and a Departmenit of Technical Operations are cr-eated.

1 953 October IS The first three loans to Japan, totaling $40.2 million, are approved. The loans to the Japan Developmernt Bank are relent for powver developmnieit.

At the helm of Japan'sbullet train, which was partiallyfinanced with World Bank funds. Photo:World Bank.

1955 Mairch11 The Economic Developmenit Institute, serving as the Bank's staff college, is set up, with financial support from the Ford and Rock-efeller FouLndations.The first course is attended by fourteeni officials from1 as many member countries.

1956 Junze 30 The number of Banki staff at the end of fiscal vear 1956 swells to r 1 1 Julv 20 The Internationial Finanice Corporation is established as an affiliate of the Bank-, with1 an autLhorized capital of $1 l() imillion.

1958 Auguist 25-2 7 In the wake of a deteriorationi in India's balance of paymnelnts,the first meeting of the India aid conisortiumn takes place in \WVashington,with attendance by re-presenita- tives of the governmeints of Canada, Ger-maniy,Japan, the United Kingdomn,anld the lJinited States.

FIIT Y\AR' OFrC-" PT R.)NSAl. filt,Hi l(HTIS 4t) 1959 September 16 The Bank's authorized capital is increased from $10 billion to $25.3 billion. September29 On the occasion of the aniual meetings, the UnlitedStates puts forth a proposal- subsequenitlvadopted by the board of governors-to establish the International Developmenlt AssociatiOnl (IDA) as an affiliate of the Bank. 1960 Septemnber19 The Indus Waters Treaty is signed by Pakistan, India, and the World Bank in Karachi, thus openinig the way to the use and development of water resources on whichi depends the livelihood of some 50 million people in the two countries.

Septemjiber24 IDA is established as an affiliate of the Bank. Initial subscriptions total $9 12 million.

September 19, 1960.The Indus Waters Treaty is signed. From left to r-ight, JawaharlalNehru, prime minister of India;AyubKhan, president of Pakistan;and Sir William huiffof , the World Bank, Photo:World Bank.

1961 Mty II IDA\extends its first development credit, totaling $9 million, to Honduras, which helps finance a program of highlway development and maintenance. ,hine 30 By the end of fiscal year 1961, the total sales of Bank loans has passed the $1,()000million mark. In all, nearly one fifth of the Bank's loans have been sold to other investors.

1962 September 17 The first Bank financing of educationi is approved, as IDA extends a $5 million credit to Tunlisia for school constructioni.

1963 .Jaluarv I George ID.Voodls becomes the fourth president of the Bank.

50 THE WORLD BANK ANNIIAI RLIP)RT 1099 1964

June 29 The first replenishment of IDA resources becomes effective, as eiglhteengovernments agree to provide $753 million. 1965 Jutne30 World Bank commitments for the fiscal year endinig on June 30, 1965 exceed SI billion for the first time. 1966 October 14 The International Centre for Settlement of Investment [)isputes is established. 1968 April I Robert S. McNamara hecomes the fifth presidenltof the Bank.

1970

February12 The IBRD'S first borrowing from Japan (equivalenitto Slot))million) takes place. One month later, the IRD borrows another $1 00 million equivalent from lapan. June 16 First loan agreement for population planninig, with Jamaica, is approved. The $2 million loan helps finance the development of a postpartunm faamily-planning program. June 30 World Bank commitments for the 197/0 fiscal year exceed $2 billion for the first time. September An operations evaluation unit, wlhose responsibility it is to evaluate the conltribution of World Bank Group operations to the development of member c.ountries, is established by the president and is placed in the Programming and Budgeting Departmente.

1971 May 18 First loan agreement ($15 million) for pollutioni control (river pollution in Sao Paulo) is signed. Maya 19 The newly founded Consultative Group on Internationial Agricultural Research coni- venes in Washinlgton. By the end of the fiscal year (JunLe3(0), the group has nineteen members.

1972 June 30 World Bank lendinig for the fiscal year enrding June 30 crosses the $3 hillion mark for the first time. October The second maLjo-reorganization of the Bank talkes place. Five regiolnal offices are created, incorporatinig seven former "area" or geographical departments and eight projects departments.

FuF- YEAIRK()' OEPRATlit)NAiHl(,HI S DTI Roet

McNamara looking at results on the ground during a visit to Tunisia in 1973_ Photoby William Clr

1974 October 24 '[he exectutive directors approve a proposal that a director general be instituted as maIlager of the evaluation fLunctioni,and that it should have links to the executive board, as well as the presidenit's office.

1975 December 16 The Project Preparation Facility. tinder wvhichthe Bank advanices finds to prospective borrowers to meet gaps in project preparation and for institutioln building, is created. December 23 The Intermediate Financing Facility, or "Third Window,' xvhichenables the Bank to provide finanice on terms intermediate betweeni those of the RlRI) and iD,A,becomes eff'ective, when pledges of $1 0f) million in conitributionls to the special Interest Sulb- sidy FuLid-enouigh to ftind abotit $6(0I)million of loans-are received.

1979 June 30 World BEanklendinig for the fiscal year- eding JunLe 30 Crosses tile $1U billion mar-k for the first time.

1980 Atiniurv 4 The lBkLE's authorized capital stock incr-eases bv $44 billion to $85 billion. March 25 The first strtmctur-al ad justimient loan, to Turkey in the amount of $20() million, is approved.

52 THE WoRI.I) BANK ANNI Al Ri PORT199)5 MaIy 15 Thle executive directors decide that the People's Repulblic of Chinia represents Chinia in the Baik. Jlu/v I A currency pooling sclheme, designed to equalize exchanige rate risks among the IBRD's borrowers, becomes operational.

198 1 ulvy I AAV. Clause n becomnes the sixtth presidenit of the Bank.

1982

September 8 IOA donors, other than the I Jinited States, agrce to provide special contributions in an amouLnt, in general, eqiual to one third of their total contributionis to inA'S siXth replenishment throuoh either an "FY84 Account" or a "Special Fnid." The special contributions are necessitated by legislative delays in the ULnitedStates and a subse- quenit reduction in its appropriations for IDA-u.

1983 Januairy II A new set of cofinanacing instruments ('13-loan"],designed to help the Bank's borrowers increase and stabilize flows of privatt capital by linking part of commercial- bank flows to IBRI) operationIs,is authlorized by the executive directors. Februairy 22 The Special Action Programn, a two-year program intended to accelerate dishurse- menlts to counitries during a periocl of adverse external circuLm1stancesso as to ensure timely implemenitation of high-priority pr-ojects, is created.

1 985 July I T he Special Facility focrSub-SalharaLn Africa, created to support, over a three-year period, reform programs unidertakeni by Africani governments, begins its operations.

1 986 Jely/ I Barbe-r Conable becomes the seventh preside nt of the Bank.

1987 Maiy 4 The Bank is reorganized into four senior vice presidential complexes: Operations; Policy, Planning, and Research; Finance; and Administration. Within the regions, counatry departments are created, combinilng the ftunactionis fornerly divided between progranis and projects departments. In addition, the cenitral Environment [)epartnient is established in the senior vice presidenicy for Policy, Planning, ancd Research. December 4 Donors agree to establish the Special Program of Assistance to provide quick- disbursing aid to reforminig lowr-income African countries with debt p roblems.

1 988 April 12 The interinational con-venitioniestablishing the Multilateral Investment Guarantee Agency takes effect.

April 27 The resolutions authorizinig a general capital increase in the IBRD'S authorized capital are adopted by the board of governors, bringing the IBRD'S total authorized capital to 3 17 1.4 billion.

FNFi ) YLARN Or OPrRvXI ION,\[ lIIcI,:i; ITi 53 1989 AiiglnstI The Debt-reduction Facility foi IDA-only Countries, designed to ease the burden on those CouIntriesof external comniercial debt, is established.

1990

]?rlnnirv30 The biggest-exer IRm loani(in nominal terms)-$1 ,6() million-to Mexico in support of that ccuntrv'- debt-ledulction programil, is approved. J11une30 Lending for education during the fiscal year endinig June 3) ctrosses the $1 billion markl for the first time. lI Iiv16 11ortd!Developmzenit Report 1990, which outlilles a strategy for reducinig poverty b ased on experienices from developing couinitries arouLid the Xworld is published. NJouember 28 The Globlal Envir-onimilenitFacility, jointly adiniiiistered by the Bank, the UInited Na- tions Development Programie, aind the lJIUited Nations Environiment Programme, is launched.

1991 Sepltelld)e)b 1 ILewis T Prceston becomes the eiighth president of the Bank.

1992 Maoy 29 Sw%itzerland joins the Bank.

June 16C Thle Russiani Federation becomes a miemiiber-of the [IRD and I)A.

JlitI 6- Twelve republics of the formilci Soviet Union becomne members of the iBRm. September 22 Nov'e,mber 3 The report of the Task Force on Portfolio [lManagernent-the YWapenhans Repor-t-is transmitted to the exeCu]tive dircetors.

1 993 Ja01InuryI Three themiaL.tic vice presidencies-dealing wvith envilonniment, huliLaniresources, and tht private sector-are established. September 22 The independent Inspection Panel, which receives and investigates coniplainits that the Banik has not followed its own policies and procedures with respect to the design, appraisal, and/or implementation of a development project that it SUpports, is established.

1994 JanuIItary3 Tht Public Information Center at the Bank's headCLualrter-s is opened Mlany3 The Bank unveils a three-year $1 2 billion program to assist Palestinians in the West Bank and Gaza in the transition to autoniomous rult. September 8 Executive directors approve recommendations to mainstreamn guaranlitees as an op- eratiolnal tool of the World Bank.

1 995 JuneI ames D. Wolfensohn becomes the ninth president of the Bank.

'4 Ii 1V,)P I' B \RT ANN' I 1995 SF.CTION FOUR 1995 REGIONAL PERSPECTIVES

AFRICA In fiscal 1995, the Africa cantlyrealigned their common of the magnitudeof the Regionvice presidencyof the currencyin early 1994. Evi- devaluation. Bankpresented to: the execu- dence indicatesthat the his- Elsewhere,while a few couIn- tive directorsfor discussion toric decisionof January 12, triesexperienced declines in :'i documentwhose title, "A 1994 on realignment,along real GDP (Burundi,Malawi, and Continent in Transition,"re- with economicreforms, has Zaire,in particular),or near- flects the state of sub-Saharan been effectivein gettingmost stagnation(Nigeria), production Africain the mid 1990s: one economiesback on the growth wasgenerally up. Severalcoun- of transitionfrom one-party path. Growth of GDP turned triesregistered GDP growth of systemsto multipartydemoc- aroundby 2.1 percentage between4 percentand 6 per- racies,from centrallymanaged points on averagefor the thir- cent (Mauritania,Mauritius, to market-orientedeconomies, teen countriesof the zone (ex- Mozambique,Tanzania,Uganda, and from economicstagnation cluding Comoros)in 1994, and Zimbabwe);for some, or declineto per capita in- comparedAvith 1991-93, and growthin this rangewas for the come growth in many couIn- became positivefor the first second,third, or fourthyear in tries (seeBox 4-1). Indeed,the time in this decade-specifi- a row. region'sgross domestic prod- cally,growth was positivein "A Continentin Transition" uct (GDP), excludingSouth ten of the thirteen countries. points out that twenty-one Africaand Nigeria,grew by Agricultureclearly responded, countriesachieved positive per 1.2 percent in 1994 and is but so, too, did industry, capita incomegrowth during projected to growmore than whichgrew by 6.7 percent in 1988-93.This trend continued three times faster in 1995 as C6te d'lvoire.Although ex- and spreadin 1994,especially the steep declineof growth in port growth accelerated,it rein countriesimplementing eco- countries such as Malawiand mainsrelatively low, because nomic reform programs.These Zambia is reversed,and as producersstill need time to countries'efforts deserve to be *pusntiessuch as C6te respondto new opportunities. supported by the donor com- "e;oire, Ethiopia, Ghana, There was dramatic improve- munity. ~~ a,Mali,Senegal, and ment in some activitiesin Coordinationand selectivity ,i spnda significantlyaccelerate 1994 (Sahelianlivestock, rice, of assistance.Since 1987, : 4 growth of their economies. canned fish, tourism, textiles, Africa'spartners in develop- . Jtahoughthe recoveryhas and other manufacturing); ment have respondedto Afri- . ken assistedby good weather cotton productionin 1994/95 can reform initiativeswith .i onditions and an improve- is up by 50 percent in Burkina quick-disbursingbalance-of- ent in the globaleconomic Fasoand Togo and by more paymentssupport under the g..~rivironment,it also reflects than 25 percent in Mali;and SpecialProgram of Assistance ' hangesthat augur well for groundnutproduction is 40 (sPA), which constitutesthe -the future, especiallya big percentlarger than the year most important aid coordina- jump in the region'sgross do- before in Senegal.At the same tion and cofinancingmecha- mesticinvestment, time, liquidity of banks im- nismin Africa,The third three- There were variations proved.While pricesrose year phaseof the SPAbegan among:countries,as usual,es- sharplyin all countriesin in 1994. In October 1994, pecdat1ylinked to economic 1994, forthe zone as a whole with the additionof Eritrea po1icds.Nowhere is this inflationwas kept below the and Congo,the total number cl.rinreithan in the co"ntries of level anticipatedon the basis of sPA-eligiblecountries grew thiiF4 zone,which signifi- - to thirty-one.To date, under

SECTON FoUR AFRICA 55 BOX 4-1. A CONTINENT IN TRANSITION

'A Continent in Transition:Sub-Saharan Africa significantprogress on macroeconomicreform and in the Mid-i 990s," asks, "What happened to the that are beginningto reap the benefits.These ad- landscapeof African politicaleconomy in the past vances,as well as exampleselsewhere of innovation five years, and what are the characteristicsof the and progresson the structuralagenda, confirmthat situation on the ground now? What has been African successstories do exist. The task now is to learnedabout the developmentprocess, and how is spread the successmore widely throughsystematic, the developmentagenda unfoldingas Afrca looks to country-specificpursuit of the developmentagenda. the next decade?What are the respectiveroles of the Elementsof the agenda, in addition to maintain- partners in African development?" ing macroeconomicstability, include continuing The study concludesthat an importantpart of the progressin education, health, and population;sus- changinglandscape is the beginningof a political tainingagriculture and the environment;reducing transition,with significantmovement towardsde- gender inequities;developing the private sector; mocratizationand political liberalization.This tran- buildinginfrastructure; and supportingcapacity sition, althoughstill partial and fragile,nevertheless building.Only throughprogress in these areas can representsa breakfrom expectationsof only five sustainablepoverty reduction-the goal of develop- years ago.The past five years have also seen notable ment-take place.Implementation of this structural progresson key items of macroeconomicreform such agendashould be aided by the processof political as exchangerates and price control;progress in other liberalization,which facilitates open discussionand areas such as fiscal balancehas been slower Al- debate. though there has been relativelyless progressoverall Relative successin macroeconomicreforms has on the deeperstructural elementsof the development beensupported by donor coordinationprovided agenda, successfulexamples can be pointed to. throughthe SpecialProgram of Assistance.Without Twenty-onecountries achieved positive per capita in- governmentaland national commitment to the devel- comegrowth during 1988-93. About half, represent- opmentalagenda, however,larger or improvedexter- ing nearly 30 percent of the region'sincome and nal assistancewill not help. For this reason, the nearly 40 percentof totalpopulation, attained or study concludes,there should be greaterselectivity in exceededgrowth ratesof between4 percent and 5 the allocationof scarceaid resourcestowards govern- percentannually ments that show such commitment.The contentsof Against this backdropit is impossibleto speak of the overallenvelope of resourcescan then be divided sub-SaharanAfrica as an undifferentiatedwhole. At among debt relief balance-of-paymentssupport, and one end are countriesmired in civilstrife and social investment assistancebased on country-specific unrest; at the otherare countriesthat have made circumstances.

SPA- , seventeen donors have pledged $6(.7 bil- The criteria of performanice shaped the evo- lion in halance-of-payments support to eligible lution of assistance to the CFA zone. Donor-s re- couinitries. sponded massively to the curr-enicyrealignmeit. Although providilIg resouIces in stipport of Adjustment programs in the CrFAzone were retoriml remains the primary pur-pose of the fo- assisted hy more thaln $2.5 billion in balance-of- rumi SPA meetiligS alICdspecial working groups payments suppoit in 1994; in addition, more havc becni effective in coordinating policies and thani $5 billion in debt relief was provided. Mul- procedures on brroaaCer-issues. Priorities under tilater-al institutionis made the largest contribu- SP'A-3 include integratinig poverty-reductionr mea- tioIn, and the Bank's share of newvfunds, which suies into reform programs and public expciedi- Went to all countries except Equatorial Guinea, ture allocations, anid strengthening local man- w as nearly 40 perceit. In the calendar year fol- a-emernt and institutional capacity Working lowinig the devaluation, the Bank approved the groups are developing recommendations in release of thirteeni tranches of ongoing adjust- these areas; they will also he considering ways nient operations, ten new adjustmenit credits, to incorporate wonimens issues more system ati- and thrl-eesupplemenits unider the iFifth Di men- cally into econiomic reform programs. Sion program. The Bank's response primarily to

5() 1HLE WC!RII) BANK ANN .\i Riio 1i11')':)R need-as opposedto need and performance-in , - w r fiscal 1995 is illustrated by the emergency assis- > - tance provided to Burundi and Rwanda (see Box r 4-2). Portfolio performance and capacity building. Portfolio performance is key to getting results (2 on the ground. The Africa Region's portfolio performance continued to improve, whether measured by the development-objective (Eoo) rating, the implementation-progress (iP) rating, or the disbursement ratio. For example, the pro- .. portion of problem projects, based on the DCO) rating (which rates projects on the extent to which project development objectives are expected to be met), fell from 21 percent in fiscal 1992 to 19 percent in fiscal 1994. Based on the iP rating, the figure fell from 25 percent to 20 percent. The improved portfolio performance is \; partly the result of improvements in the politi- ,, cal and economic environment. The improvement has also been helped by the restructuring / z 4 , of the portfolio, improved financial manage- t ,i - ( ment of projects (through, for example, system- ( atic preparation of audit reports and strength- . ened accounting capacity), and more effective ; . supervision. k - Such actions, which led to improved imple- 7 mentation of the Region's portfolio, also help to _ ,_ v - ),/ theimprove effective assistancebess of from- other donors and to improve broader-level eco- i , nomic management in the countries concerned. For these additional reasons, the Bank has implemented a strong program of portfolio- management actions. These include the - - strengthening of the links betwveen macroeconomic and sector-specific policies, progranis, and activities, which is key to good project de- fiscal aspects and focuses, rather, on the perfor- sign; reaching early agreement with local stalke- mance ot core governmenit functions and ser- holders; enhancing donor dialogue leading to, vice delivery. Reforms in this latter area are off among other things, common implementationi to a good start, for example, in Malawi under arrangements; encouraging local capacity build- the Second Institutional Development Project, ing and utilization through well-focused train- which became effective in December 1994. The ing (on procurement and disbursement issues, project aims to strengthen the capacities of the for example); and continuing emphasis on Nlinistrv of Finance and the Department of stipervision. Human ResoLirces Management and Develop- Civil service reform is key to the successful ment. These efforts are expected to help en- implementation of projects, programs, and poli- hance efficiency and effectiveness through im- cies; it is, therefore, a priority of the Bank. At- proved performance of personnel and better tention in this area extends beyond the narrow budgetar\ and financial management functionis.

Si ( i11' FioR' BOX 4-2. EMERGENCY ASSISTANCE: THE CASES OF BURUNDI AND RWANDA The tragic events of 1993 and 1994 in Burundi overcomethe erosionduring the past two years of so- and Rwanda tested the creativecapacity of the Bank cial standards and capacities. to respondto unprecedentedchallenges and help re- In Rwanda, respondingto an appealfrom the versethe damage done to these countries'economies, United Nations, the Bank approved in August 1994 institutions,and socialfabric. an emergencygrant of $20 million, which helpedfi- In 1994, in the wake of the politicalcrisis, nance activitiesof the UnitedNations Children's Burundi experienceda sharp drop in food produc- Fund, the United Nations High Commissionerfor tion, a breakdown in the deliveryof socialservices, Refugees,the Foodand AgricultureOrganization of destructionof businessproperty and public infra- the U.N., and the WorldHealth Organization.The structure,and the collapseof key institutions.Gross grant moneyfinanced activitiessuch as providing domesticproduct declinedby 9 percent, and food toolsand seeds for returningfarmers, the establish- productionplummeted by 22 percent.Rwanda's ment of a seed-multiplicationprogram, the repair of postwar economicsituation was grimmer:More than water-supplyfacilities, purchase of textbooks,and in- a third of the population were refugees,more than stitutional strengtheningof public health activities. half the country's agricultureand industrial output The Bank subsequentlyhelped prepare the $200 was lost, and most Rwandan enterpriseswere not million EmergencyRecovery Program, which identi- operational.The country's institutionalmemory and fied the priority needs for one year in health, educa- project-implementationcapacity wereseverely handi- tion, infrastructure,agriculture, and the private sec- capped by the disappearanceand killing of person- tor and outlined technicalassistance for institutional nel, destructionof files, and theft of computersand capacitybuilding. A $50 million IDA credit support- equipment.As a result,the central administrative ing the programwas approvedin January 1995. capacity was quasi-paralyzed. Donor collaborationwas instrumental in putting In Burundi, the Bank helpedprepare and finance togetherrapidly the two recoveryprograms. At the the EmergencyRecovery Program (ERP), which ad- same time, in both countries,the Bank has been re- dressespriority needs in health, primary and second- structuringits portfolioto be able to respondto new ary education,agriculture, infrastructure, and the prioritiesand to reflectthe true absorptivecapacity private sectorA donor consortiumcommitted $53 of the countriesand the activitiesof otherdonors. million (including$14.6 million in IDA funds) to- However,a durable solutionto these countries'prob- wards the costof the ERP. Consistentwith the longer- lems lies in actions within the countriesthemselves. If term emphasison equity and human-resources the peopleof Burundi and Rwanda do not find suffi- development,almost 70 percentof the funds have cient commonground to resolvetheir differences,sus- been allocatedto basichealth and educationso as to tainable developmentwill not be achievable.

A special feature of the Malawi project is the in Africa. It stems from dissatisfaction with reliance on considerable local participation some of the results achieved by traditional in- through workshops involving a significant num- vestment operations financed project-by-project ber of middle- and senior-level civil servants. and donor-by-donor. The unsatisfactory results There is also strong support for the project at reflect insufficient government grasp and own- the higher echelons of government. Before the ership of projects; inadequate allocation of re- project was approved by the Bank's executive current resources to sustain the project; the board, the government of Malawi demonstrated pursuit of conflicting strategies resulting from a its commitment by promulgating the Public lack of donor coordination; and the diffusion of Service Act, which contains provisions for fos- the limited national implementation capacity. tering predictability, transparency, and account- The broad sector approach tries to address ability in the conduct of government business. these problems by bringing the government and Broad sector approach. The broad sector ap- donors together into a collaborative framework: proach to investment lending is a more compre- * The local stakeholders are in the driver's hensive way of approaching lending operations seat of the program from the start to ensure

5S THE WORI D BANK ANNIIAL RLoiRi 199% TABLE 4-1. LENDING TO BORROWERS IN AFRICA, BY SECTOR, 1986-95 (millions of us dollars;fiscal years)

Annual average, Sector 1986-90 1991 1992 1993 1994 1995

Agriculture 661.4 504.9 707.4 318.3 152.6 375.1 Energy Oil and gas 15.1 300.0 48.5 - 186.2 - Power 148.5 155.0 76.0 356.0 90.0 255.3 Environment - - - - 2.6 - Human resources Education 167.3 265.9 402.9 417.4 325.5 201.2 Population, health, and nutrition 109.5 432.8 100.3 131.2 161.6 311.5 Social sector ------Industry and finance Industry 159.4 - 200.0 83.5 29.6 53.0 Financial 268.2 138.8 619.9 252.3 400.1 7.2 Infrastructure and urban development Telecommunications 80.5 12.8 - 89.1 - - Transportation 366.2 309.5 242.8 483.0 515.0 74.8 Urban development 242.4 98.3 222.6 61.2 111.4 158.0 Water supply and sewerage 124.3 256.0 297.4 67.2 74.1 248.2 Mining and other extractive 30.0 21.0 6.0 - - 24.8 Multisector 534.3 887.0 936.7 453.6 711.0 470.9 Public sector management 79.0 12.2 113.1 104.5 48.2 104.3 Tourism ------

Total 2,986.1 3,394.2 3,973.6 2,817.3 2,807.9 2,284.3

Of which: IBRD 1,039.9 662.9 738.4 47.0 127.7 80.7 IDA 1,946.2 2,731.3 3,235.2 2,770.3 2,680.2 2,203.6

Number of operations 81 77 77 75 60 58

NOTE:Details may not add to totalsbecause of rounding. - Zero.

local ownership and sustaiinabilitv. This requires * Donors locate their assistance within the a transfer of project-preparation responsibilities government's defined program, rather than pro- from donors to local stakeholders. moting their own approaches. * The program is sectorwide in scope, cover- * Efforts are made to establish common ing all policies and projects, and addressing ag- implementation arrangemenits for all operations gregate current expenditures in the sector. within the sector. * The interventions implement a coherent * Long-term external technical assistance is sector policy framework-developed in close minimized, with a focus, instead, on capacity collaboration with the country's private sector, building. nongovernmental organizations (NGos), and Three such operations were approved during project benieficiaries. the past eiglhteen monitlhs (Mozambique Second

SR- I [ 'N 1 2,1IR AlRK A 59 Roadls and Coastal Sh ipping P'roject, Zambia strategy documlienit,"A Continent in Tranisitioni," Health Sector Support Project, and Zamlbia Ag- involved conisuLltationsin about thirty African riculture Sector Investmenit Program). Each in- and doonor counitr-ies.Systematic borrower coni- corporated features of the broad sector ap- sultation in the form of client-feedback surveys, proach anedall were car-efully developed over xwhichiassess the attitudes of borrower-govern- several years. With a growing foc.us on impact ment officials toward Bank services, has been and witlh an increasing understanding of this undertaken in ninie countries (C6te di'lvoire, Mali, collaborative framerwork, the number of broad Guin1ea,Madagascar;, Malawi, Mozambique, sector operations is expected to rise to about 2( lUiganda,Zambia, and Zimbabwe). Participatory percent of total lendinig in the next three years. ancdcon1sultatiVe methods are now being used in- Most of these operations will be in the social creasingly in economic and sector work, espe- sectors, agriCulture, and roads, because these cially in the prepar-ation of poverty assessments. sectors attract a multiplicity of donors in Africa On the operational side, too, the use of tech- and because broad government ownership is niques such as participatory rural appraisals and most critical if results are to he stustained, beneficiary assessments has increased over the Participatory itnitiatives. The Bank made past tw\o years. In Angola, for ex-ample, a beniefi- strides this past fiscaLlyear towards instittutional- ciary assessment on urban water anedsanitation izing participationl in ordter to enhanice both the involved consultationi with the primary users in quality of work and the chanices of' getting the urban commuLnities to determine attitudes, desired results on the ground. Participation, a preferenices, anid perceptionis towards water and broad and inclusive term, is diefiniedlas a process sanitation services, as well as optionis for com- through wlhich stakeholders influenlce ainid shalre munity-mianaged water anLi sanitation projects. conitrol over the dlevelopmenit initiatives, deci- To support such participator-y activities, the sions, and resoturces that affect them. Participa- Africa Region established in fiscal 1995 special tion may incorporate a wide range of techlnicques Systematic Client Consultationi FuLndsin eacl such as colnsultationi (through borrow'er forums, departmcnt. At the same time, the Africa Re- for example) or joint assessments. Consultation gion vice presidency has been a major user of is the form of participationi that lhasrecenitly the Funld for Innovative Approaches in Humani been the most prominenit in the Bank's Afr-icaL and Social Development, established in late fis- Region. 'T'he preparation and discussion of the cal 1994, Which supports participation, consul-

TABLE 4-2. WORLD BANK COMMITMENTS, DISBURSEMENTS, AND NET TRANSFERS IN AFRICA, 1990-95 (millionsof us dollars;fiscal years)

Nigeria C6te d'lvoire Sudan Totalregion start start start start Item 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 Undisbursed commitments 2,053 241 1 12,200 Commitments - 1,954 303 1,668 - 98 2,284 19,237 Gross disbursements 273 1,919 270 1,343 - 378 2,795 16,797 Repayments 384 1,787 218 987 - 49 1,173 5,850 Net disbursements -111 132 53 357 - 329 1,623 10,947 Interest and charges 262 1,587 160 926 - 36 819 5,040 Net transfer -373 -1,455 -107 -569 - 293 804 5,907

NOTE: Disbursements from the [DA Special Fund are included. The countries shown in the table are those with the largest amounts of public or publicly guaranteed long-term debt. Details may not add to totals because of rounding - Zero.

()( Trn Womti B,\AM.ANN[ '\i. RLi it r I 995 tation and social assessmenit in operations conditions on1a continuing basis are being used through capacity hbuildinigand operational sup- to understand better the tonstrainits faced by port. The Region has set fiscal 1 998 as the enterprises. In Decemiber I 994, the Africa Re- target date for building beneficiary consultation gion vice presidency, in conjunction with the into all its major lendinig and nonleniding Finanice and Private Sector Development vice activities. presidency, organized a two-day seminar in Private sector development. Improvinig the Nairobi on "The Resumptioni of Private Sector supply response in the wake of adjustnienit re- Growth in Africa." The semin1ar-brought to- mains the drivinig force of private sector devel- g'ether senior Bank officials and more than fifty opmenit efforts in the Africa region. During the private sector representatives from ten African past vear; efforts continued to help clienit coun- coun1tries. It confirnmed the existence of largc tries improve their businiess en vironmzentt, accel- uLitapped potential in the Africani private sector, crate public enterprise refor-m aind privatization higlhlighted some of the problems that entrepre- and restructure and diversify tht financial sec- neurs face, and suggested ways in which the tor. In addition, efforts continue to be made to Baankcould clhaninelsupport to the blusiness enhance private sector conmpetitiveness through coni iunLity more dir-ectly. measures aimed at internal liberalizatioll-the Socialpriorities. I iunaan-resourct develop- abolition of monopolies, the promotion of comii- ment an(d poverty reduction, in particular, are at petition in domilestic trade, and the rationaliza- the forefront of the Bank's objectives in Africa. tion of investment-incentive schemes. An ex- These cenitral objectives wvcre pursuLed during ample of this multipronged approach is evident the year in various ways, both directly and ii.di- in the Private Sector Adiustmenit and Conmpeti- rectly. Many of the projects approved that sUp- tiveness Credit for Senegal approved in the past port long-term groxvth have focused on creatinig fiscal year. the necessar-y environiment for increased em- Attention is also being paid to increasing pri- ployment oppor-ttuniities,improving the effi- vate sector participationi and investmenit in in- cienicy oft markets, and redir-ecting the allocation frastructure. At present, the competitiveness of of pulblic expendituleCs more toward the poor. African firns is uLiderminied by the high cost Other projects are designed to provide broadly anid low quality of infrastructure services. Per- or naL-rowlytargeted assistance for the poor in formance-based management conitracts have ar-eas that range firom health to adult literacy been used to encouL-ageprivate participation. and food securitv. Poverty-targeted interveni- A landmark project in C6te divoire, approved tions have involvedl diverse measuL-essuch aS in fiscal 19')5, suppor-tsthe first privately raising productivity in agriculture, hunan-re- owined anid operated indepenidenit power gener- source development or improving living condi- ating plant in Africa. Early experience w ith pri- tions, provision of safety nets, and better naL- vate sector participationi has led the government tional resource management. The projects of C6)te d Ivoire to redouble its efforts to en- through which sutch ob jectives have been pu-' courage additionial private participationi in the stied have beci similarly varied; the most innao- power sector. vative among them during the past year were In nearly every country there has been an the ZamIbia Agricultural Sector In\vestment increased emphasis on dialogue with the private Program and the Chad Population anid AIDS sector and on supportinig channels of commuLni- Control Project, both of which were prepared cation between client governmenits and the pri- in highly collaborative ways involving beneficia- vate sector. Support to the local chamnebr of ries, official doniors, alid NOs. comnerce, as planined in the Maul-itania Capac- The best illustration of innovative, indirect, ity Building Project for the Developmenit of the yet efftective, intervenitionis to improve social Private Sector, can help such organiizatioins be- coonditionishas been the demobilization progr-am comiiebetter interlocutol-s for private sector inin l Jganda, xvhich the government continued to terests. Rounidtahles with the businiess comniu- implemelnt during the year and wlhich aims at nity and surveys that monitor firmii-level reallocating public expeniditures away from

SL( 1m1)NFouR Al-RICA 61 TABLE 4-3. PROJECTS APPROVED DURING FISCAL YEAR 1995, AFRICA

Principalamount (millions) Country/projectname Date of Approval Maturities SDR US$ Benin Health and Population Project May 30, 1995 2005/2035 17.90 27.80 Third Structural Adjustment Credit May 23, 1995 2005/2035 25.80 40.00 Environmental Management Project May 2, 1995 2005/2035 5.50 8.00 Burkina Faso Urban Environment Project May 23, 1995 2005/2035 24.80 37.00 Second Urban Project (supplement) November 10, 1994 2000/2029 6.90 10.00 Burundi Second Health and Population Project May 25, 1995 2005/2035 14.30 21.30 Emergency Assistance Project December 15, 1994 2005/2035 9.80 14.60 Cameroon Transport Sector Technical Assistance Project April 111995 2005/2035 6.90 10.20 Health, Fertility, and Nutrition Project March 7, 1995 2005/2035 29.50 43.00 Economic Recovery Credit (supplement) December 8, 1994 2004/2034 23.20 32.80 Cape Verde Basic Education andTraining Project January 19, 1995 2005/2034 7.80 11.50 Central African Republic Livestock Development and Rangeland Management Project December 1, 1994 2005/2034 11.50 16.60 Chad Population and AIDsControl March 23, 1995 2005/2034 13.90 20.40 Agricultural and Livestock Services Project March 14, 1995 2005/2035 17.00 24.53 Social Development Action Project (supplement) November 10,1994 2000/2030 6.80 9.80 Second Transport Sector Project (supplement) November 10, 1994 2003/2033 8.80 12.70 Cote d'Ivoire Private Sector Energy Project June 28, 1995 2005/2035 50.60 79.66 Agricultural Export Promotion and Diversification Project June 22, 1995 2005/2035 3.70 5.83 Municipal Support Project April 13, 1995 2005/2035 27.20 40.00 Economic Recovery Credit (supplement) December 8, 1994 2004/2034 55.20 77.90 Economic Recovery Credit October 20, 1994 2004/2034 70.70 100.00 Ethiopia National Fertilizer Sector Project June 13, 1995 2005/2035 82.90 120.00 Seed Systems Development Project June 13, 1995 2005/2035 15.20 22.00 Structural Adjustment Credit (supplement) December 8, 1994 2003/2033 0.10 0.20 Gabon Transport Sector Technical Assistance Project July 7, 1994 1999/2009 n.a. 5.20 Ghana Mining Sector Development and Environment Project June 13, 1995 2005/2035 7.90 12.30 Private Sector Adjustment Credit May 9, 1995 2005/2034 46.90 70.00 Fisheries Sub-sector Capacity Building Project May 2, 1995 2005/2034 6.20 9.00 Vocational Skills and Informal Sector Support Project March 28, 1995 2005/2034 6.60 9.60 Thermal Power Project February 16, 1995 2005/2034 124.10 175.60 Agricultural Sector Adjustment Credit (supplement) December 8, 1994 2002/2031 3.60 5.00 Private Sector Development Project December 6, 1994 2005/2034 9.00 13.00 Guinea Equity and School Improvement Project May 9, 1995 2005/2035 28.50 42.50 Financial Sector Operation October 18, 1994 2005/2034 16.30 23.00 Guinea-Bissau Transport and Urban Infrastructure Project June 22, 1995 2005/2035 14.00 22.00 Kenya Sexually Transmitted Infections Project March 14, 1995 2005/2035 27.70 40.00 Institutional Development and Civil Service Reform Project December 20, 1994 2005/2034 17.20 25.35

62 THE W\Ri'r) BANK ANNI iAl. Rvo ,r 199M5 Principalamount (millions)

Country/projectname Date of Approval Maturities SDR US$ Madagascar Agricultural Extension Program Support Project May 23, 1995 2005/2035 16.20 25.20 Second Irrigation Rehabilitation Project July 12, 1994 2004/2034 15.00 21.20 Malawi National Water Development Project June 28, 1995 2005/2035 50.30 79.20 Railways Restructuring Project March 28, 1995 2005/2034 11.20 16.16 Entrepreneurship Development and Drought Recovery Program (supplement) December 8, 1994 2002/2032 3.20 4.60 Enterpreneurship Development and Drought Recovery Program (supplement) November 3, 1994 2002/2032 27.60 40.00 Mali Agricultural Trading and Processing Promotion Pilot Project June 1, 1995 2005/2035 3.90 6.00 Education Sector Adjustment Credit January 5, 1995 2005/2034 34.30 50.00 Public Works and Capacity Building Project (supplement) November 10, 1994 2002/2032 6.90 10.00 Mauritania Private Sector Development Program May 23, 1995 2005/2035 19.30 30.00 Capacity Building Project for the Development of the Private Sector May23, 1995 2005/2035 4.70 7.20 General Education V Project April 18, 1995 2005/2034 23.80 35.00 Mauritius Port Development and Environment Protection Project June 20, 1995 2001/2010 n.a. 7.10 Port Development and Environment Projection Project June 20, 1995 2001/2010 n.a. 23.40 Higher Technical Education Project March23, 1995 2000/2010 n.a. 16.00 Niger Pilot Private Irrigation Promotion Project April 18, 1995 2005/2035 4.60 6.80 Public Works and Employment Project (supplement) November 10, 1994 2001/2031 6.90 10.00 Rwanda Emergency Recovery Project January 31, 1995 2005/2034 34.30 50.00 Senegal Water Sector Project June 29, 1995 2005/2035 63.50 100.00 Private Sector Capacity Building Project June 29, 1995 2005/2035 8.00 12.50 Agricultural Sector Adjustment Credit June 6, 1995 2005/2035 29.00 45.00 Community Nutrition Project May 16, 1995 2005/2035 11.70 18.20 Private Sector Adjustment and Competitiveness Credit February 16, 1995 2005/2034 27.60 40.00 Economic Recovery Credit (supplement) December 8, 1994 2004/2034 2.30 3.20 Sierra Leone Urban Water Supply Project April 11, 1995 2005/2034 24.50 36.00 Structural Adjustment Credit (supplement) December 8, 1994 2004/2033 0.20 0.30 Swaziland Urban Development Project November 15, 1994 2000/2015 n.a. 29.00 Tanzania Mineral Sector Development Technical Assistance Project July 28, 1994 2004/2034 8.90 12.50 Togo Education Rehabilitation Project June 28, 1995 2005/2035 23.30 36.60 Uganda Institutional Capacity Building Project June 1, 1995 2005/2035 25.00 36.40 District Health Services Pilot and Demonstration Project February 7, 1995 2005/2034 30.90 45.00 Second Structural Adjustment Credit (supplement) December 8, 1994 2004/2034 0.40 0.60 Zambia Second Social Recovery Project June 28, 1995 2005/2035 19.10 30.00 Urban Restructuring and Water Supply Project May 16, 1995 2005/2035 21.30 33.00 Agricultural Sector Investment Program March 30, 1995 2005/2034 41.20 60.00 Economic and Social Adjustment Credit (supplement) December 8, 1994 2004/2034 9.70 13.70 Health Sector Support Project November 15, 1994 2005/2034 38.70 56.00 1,491.60 2,284.30 n.a. = not applicable(IBRD loan). NOTE: Details may not add to totals becauseof rounding.

SE(1-10ON FOIR AFRICA 63 military interests in favor of the social sectors. inder the program, to date, ahout 33,00) The program was promiipted by a public expen- veterans and more than 100,000 dependents diture review in 1992 that revealed an expcndi- have been successftilly integrated into their ture pattern in wlhiclh clefense spencling home communities. About $35 million hias been amounted to about 40 percent of the anLnu.Lalre- mobilized through a Bank-coordiniated, current budget, crowdinig out investmenits in multidonor effort to achieve this result. A final- the social sectors. Given the nteed to design, fi- phase clemobilization of 12,500 veterans is unil- nance, and implement a large-scale reductioni in der implementation and is expected to be com- military ftorce, the government requested that pleted by December 1995. As a direct result of the Bank become the lead agency in putting to- the program, over the 1992-94 period, defense gether and mobilizing resources for such a pro- expenditure wvasreduced from 38 percent to gram. As time was of the essence, the Bank, at 22 percent of overall recurrent expenditure, the request of the government, restructtured an making room for substantial increases in social ongoing IDA credit to include a component for expenlditures. assisting the socioeconorniit reintegrationi of de- mobilized soldiers and their dependents into a productive civilian life. The programn Wastar- geted at about 50,000 veterans and their- depen- dents (abouLt a 50 percent reductioni in force) over a three-vear period. The program provides veterans withi a fresl set of civilian clothing:s transportationi to their- homiiedistricts, a traLnsitionialsafety net of cash and in-kind paymellts (agricultural tools, building materials tor a house, for examiiple) over a six-month readjustment period; job training; and enhanced health benefits, especially for the disabled and clhronically ill. Primary schlool fees are also paid for veterans' chiildren ftor one ye ar Thc average cost of this package is about SI,000 per veteran.

64 I'i F WORI.L BANk ANINI'v\ RrlvORrF 1 5 EASTASIA AND PACIFIC

The East Asia and Pacific re- ing-followiing the pr-ecedenits a reductioni of pox erty. The gion againirecorded the most of Australia (I 962), Japan number of people living in ab- rapid aggregate growth rate (1967), NewxZealanid (1977) solute povel-ty has declined to among regions in the world: 9.6 and Singapore (1 975). The about 1 80 million (I I percenit percent in 1994, up slightlv vast majority of the people in of the total populationi), doxn from the 9.4 percent posted in developinig East Asia, sonic from an estimated 330 million 1993. Nearlv all couLntriesin 1.3 billion, live in lowv-income in 1 980. This represents about the region participated. For ex- member cotunitries, including 1 7 percent of the poor in all ample, growth in China eased the six economi-iiesin tranisitioni developing couLn1tries.In addi- slightlv to 1 1.8 percent, com- (Cambodia, China, the Lao tion to the incolmle figur-es, pared with 1 3.9 percenit in People's Democratic Republic, other social indicators in the 1993, as the government expe- Mongolia, Myanmar-, and Viet regioni have showni remarkable rienced some success in cooling Nam). In addition, suLchlarge improvemenit: Life expectanvy the economy, and the Philip- borrowers as Indonesia and has risen to 68 years (coini- pines recorded a satisfying in- the Philippines have anniual pared xvith 64 years for all decrease in its growth rate to 5.1 per capita incomes of under veloping countries), primary percenit. Other counitries in the $1,000, and, despite rapid education is essentially uLniver- region were able to maintain progress, continiue to face dif- sal, and seconidary enrollments growth in the 5 percent-to-S ficult development problems. are 53 percenit (compared percent range, with the excep- At the other end of the spec- witlh 45 percent), while infanit tion of the Pacific islands and trum, the small Pacific island mortality is only 39 per 1,000 Mongolia. In the Pacific islands, member states are struggling (compared with 65 per 1 ,000 aggregate growth was close to 2 to attain higher growtlh rates for all developing countries). percent-an improvement over and participate in the dynamic There is, of course, significant the recent past; Mongolia, economic expansioni of the variation among individual which sticceeded in reversing Pacific Rim. The primary chal- countries. past declines, also registered lenge facing all these countries The bulk of the resources growth of about 2 percent. is, of course, reducing poverty. needed to sustain this perfor- Impressive as this overall The economies in transition nmancehas been generated do- picture is, it is important to face particular problems in mestically. Savings rates have recognize that a large develop- moving to a market-oriented been above 30 percent of ment agenda remains. The re- svstem based on more private- gross domestic product (GDPi) gion is diverse: It contains the sector activity. The region is for most countries, and rates largest and the smallest Bank still largely rural and will un- are rising toward that level member countries, as well as dergo rapid urbanization in in the others. Much invest- countries that number among the coming decades, adding to ment has been made in educa- the Bank's most prosperous the already large backlog of tion and training, even in the and poorest borrowers. The demand for infrastructure. low-income countries. Fur- maturing middle-income Moreover, the region's growth thermore, these countries are countries, with an established has placed a heavy burden on following outward-looking de- reputation for economic per- its natural resources and envi- velopment strategies. Strong formance, constitute only 7.2 ronmental quality, which will export growth has been a percent of the population, and require major remedial and mainstay of their rapid expan- their share in Bank operations preventive action. sion, including countries is declining. The Republic of A look at the record. The whose economies are in transi- Korea received its last two East Asian countries have been tion. The past year has wit- loans from the Bank in fiscal quite effective in translating nessed a further liberalization year 1995, and it is graduat- their high rates of growvth into of trade throughout the re-

SC( lON Foi R F \'T A'l,\ A.NI P '., [i}i 65 TABLE 4-4. LENDING TO BORROWERS IN EAST ASIA AND PACIFIC, BY SECTOR, 1986-95 (millions of us dollars;fiscal years)

Annual average, Sector 1986-90 1991 1992 1993 1994 1995

Agriculture 666.9 1,374.7 826.7 1,089.3 1,735.4 818.6 Energy Oil and gas 49.2 - 100.0 225.0 266.0 245.0 Power 662.2 275.0 1,745.9 760.0 1,048.5 1,383.0 Environment - - - 50.0 216.5 110.0 Human resources Education 284.9 592.0 474.1 478.9 436.6 526.5 Population, health, and nutrition 55.8 164.0 129.6 200.4 160.0 242.2 Social sector - - - - 9.7 20.0 Industry and finance Industry 197.2 361.7 82.7 250.0 40.0 175.0 Financial 341.9 439.3 - 457.0 100.0 - Infrastructure and urban development Telecommunications 84.6 - 375.0 134.0 250.0 325.0 Transportation 728.1 323.6 1,182.5 1,132.2 1,340.0 960.0 Urban development 261.4 543.1 168.0 110.0 349.0 208.5 Water supply and sewerage 112.3 177.8 275.0 310.0 - 75.0 Multisector 348.0 250.0 70.0 200.0 82.7 167.0 Public sector management 6.1 62.0 17.0 173.0 - 438.0 Tourism ------

Total 3,798.6 4,563.2 5,446.5 5,569.8 6,034.4 5,693.8

Of which: IBRD 3,189.7 3,471.0 4,386.9 4,404.8 4,623.8 4,592.6 IDA 608.8 1,092.2 1,059.6 1,165.0 1,410.6 1,101.2

Number of operations 38 39 45 45 43 42

NOTE:Details may not add to totals because of roundinzg - Zero.

gion. East Asian coLunltriesintegration into has made East Asia the predominant destination world markets is remarkable. These developing of private international capital flows, both di- countries currenitly accouLntfor over one third rectly and in portfolio investment. The region of developing counitry tradle (l() percent of total received an estimated $90 billion in foreign worl-d trade). It is estimated that over onet'third capital flows in 1994, of which $82 billion was of the incremenit to world trade betweeni noiw from private sources and $43 billion was direct and the end of the decacle will be generated investment. Rising interest rates in the United from developing East Asia. States dampened internationial investment flows Integration into world markets, along wvith in 1994, compared with the previous year, but stronig economic performance and stable policy,

66 TIiF WI)RI i) BANK ANN1l1AiRFLiW(RT 1907 tl 1 ,,''4;

A'i 144X-

Ei tAtii tmnrj) we' 11Cs)IMil,1)tt-S 0\'t ;m %i

t k. t I.1 0 -,

a ' *' ' Rc i s - f\l0 C 9.J' . 'I h.t :

access tN'i.nutrkoits bte t(ha tnis ito li r-therltiei Ir )4 a si11111Karols riCtLd(1andl 1e.1Lne1iy t con ter Fa\stn-t' A mcc they' Ii-s ave etcbeen nestmenablle to uIse tlit eforeignltbi ther ericigVetnnLt.e heldl ntOto ofildiscus vNai,t1\ its ti oiotak tli>) 7iipl-te in1 Clnii a inssas savingsh etlecti cly Recipien1ts of large floss s followed li\ that gos erninlln s1l rst -oniprehleli- havxeraisedl dlomestic itl\estflletlt raltes ihy severa;l sive plan to fight pnosert\ (tIn- 7- Planl); a lar-ge perce nta1geproints of ci 'PSas tliev absorbedLthe parlt oftlte Brankss agricutI turt anqdaln rttst all oft torcil encapital. The combinatio on etec tiL' e its social sector opelratoins in'hina ( ihave shifted uvse-F foreign inlvvstnlent, soutnd n.lacro- to the poorer proviil~ tls; antl tlI- poveLrtVstudy 1 ectnotlriti p it.ies, and hilgh e'port gr-ossth ssas for Indolnesi.a, onpletd in Ii c-l 1)t4 , hls led at1 itlipnortat reasol svhv theseer ononllis iverwe to greater potverty focus in po tjt-ts in thlat largt,l spare-d- fi-(om tIle dLisrtptiotlls ill ttII-rrlncv V oilltly.tt miairkets ald1 illmestilmeilt flosvs that 11av been N-lost ol tile losv-ilcmle t. ttuittries.' ill tle I-e- ll CtilOngde,t 'lopil1g c(untr-j,ies sinltcethle endC gion are econuolimiesin t-railsititill. SLtct.Sesinl siS- of 1)9)4. tainiiig Iiigh raLtesof gro\th i dependls critically Challenges ahead. Despite outstan(.dilng o11their cotllpletilig the le,t t-\saby legal, budget- grmis-tf perforirtance in recent yea-rs,ieduc-ing arv and gsertiati-e reform-s that ma-ket econo- pm5ert\ is still thilet-ost critit. al issul facing the illies requir'. While these countries hase beetn lti\v-iilcnlOme couniitries. In additioll to the I '(1 opeii to ch -inge and 1ha-v tidertaken sulstantial milli lsing in absolute poverty, 2Sff miulion refol-rlis ahead- thle klsiis ta,I frti tol Wil- iliorc livt jiust ahsovethe po)verty hine,sith in- plete. CIlilla utlltied its t\,. lailge ra1teil lailuary collieS bate,l- orte third above thlat otf the poor- 1¶194 aLntdmoved to openi its calpital malrket fiur- est, atid almost 40ff million nio e pe ope t' et bV ther. The Batik is urreltly \ or-king with tht oil ilk olilies n(it iol-e thain double th.lt oit the gOverilmenit onI state-owiied Cleterpr-ise anld fi- povcrty line. Anallysis of pover ty issuLesand r ec- naiciaLl sector- reforni. A structurall adjustment orrimlildationls on po\ei-ty redluctioni are core credit was preparedl andc app roved ftor Viet Nam elemienitsof ianks(-ork in these cointries: A 1 S- k,cied 1t-1ctt (tst- t,i- vIt' 1 it t-- t t111.itC11('\\ tN nmajotipos-ert- aiailysis, inl coo(pip ationl vitl tile niat.lig tile St t mpif]Lonpetplh ( Ijgttrin ii,iafers ini ,t\l year (b\ the year 2()11111

S I TPIN Fit EAASTASiA\ ANF) PA(-IFI( 67 in fiscal 1195, and an emergenicy reliabilitaLtioni are properly located and use clealn teclihology. credit was approvedAfor Camnodia to assist in Regional approaches are also being considered, its transition, for example, to develop coordinated policies on The surging demand for infrastructure in the logging and offshore fishing in the Pacific is- region is related both to its rapid rate of growth lands. and its accelerating urbanization. Nearly all the The Bank's activities. The remaininig develop- couintries in the region are experienicinig bottle- nieit agencla is more thaln enough to severely tax necks, and investmiienitdemianidis for infrastruC- any likely amount of resources available from the ture have been estimilated at S1 .5 trillion be- Bank or other international institutiois. High do- twveen now and the end of the decade. The Bank mestic savings in these counitr-ieswill proper-ly and is increasing its financing of vital intraistr-utc- necessarily provide the bulk of the resources for ture-transport, power, water, saniitationi, and developmenit, and that xvill be supplemented by telecomnmunicationis-in East Asia, which rose foreigni investment. The Bank's conitributioni is, to $2.7 billion in fiscal 1 995. The shar-e of Bank nevertheless, sig-nificant.Commitments in fiscal comniitmenits in Su,plpOrtof infrastructure in- 1995 were $5.7 billion, leading to gross dis- vestmenits is expected to contintue its climb, biut btirsemienits of $4.5 billion and net disbur-se- the demand is greater than public sour-ces are ments of $1 .6 billion;: net transfers, taking ac- likely to be able to meet, and more private fi- couLntof interest as wvellas principal repay- nancin-g must he encouraged The Philippinies ments, wer-c a negative $634 milliotn (see Table has lecl the vay bv sploisoring more thani thirty 4-5). Within these overall figuL-es,it is important i0 Y[ (build-operate-transter) investments in to note major shifts in the allocation of re- poxver supply, effectively using private finallcilng sources. The mature borrowvers, Korea, NMalay- to solve its most pressing infr-astructurLebottle- sia, and Thailaind, are net repayers, and their neck>- Chiali, Indonesia, Malaysia, andcThai- share of new lending f'rom the Banlk is stable or land are also enrcouraging private finiancinigot declining. They do, however, conitinuiieto rely on infrastructure, and other couLntries in the region the Baankfor special studies and projects in in- are investigating the potential. The Bank hazs ad- novative areas. Somile,ountries, most r cently v\ised countries on the necessary regulatory and Indoniesia, have taken advanitage of favorable re- legal strutcttire for promoting such investnienits serve positions to prepay some of their Bank while protecting public interests. Several bil- loans. 'Fhese factors partiallyi mask the large lions of dollars of private equity funlds have positive net transfers going to the low-inicomiie beenl raised for infra strttcture investment in the coutiitr-iesof the region. Net transfers to China, regioll. for example, amoun1ted to some SI .4 billion. Protectinig the environment and assuring the The Banik is becoming more focused and se- effective use of natural resources is increasingly lective in its activities, concentrating on areas of being recognized by the authorities in these high priority agreed with its clients. These cor- countries as vital to sustainiing their continuedt responid to the priorities noted earlicr, with prosperity. In the paist twvo years, the Batik has varying emphasis by country accordinlg to spe- complcted or initiated comprehensive en viron - cific situatiols. In the more ni3attire economies, mental studies in most ot'the couLitries. Cov- econjiomic and sector xvork (LsW) tasks have cromenits have begunl to take strionger- actions been dieveloped in closc cooperation with the oni both natural resour-ces conservation and en- clienits to adcdress specific topics-the environ- vironmenntal pollutioll. Controllinmg industrial ment, povertv/inicome-distributioni issues, and pollution is ani arca that has received xviide- spread attention. 'I'he high investment rates and rapid growth in the region imply that most

of the incdustry that will be in place twenty 2 Ivri l .i privatc rJIt% (olNConsortitiulm) agrevs tm ,to linlatli, Olhistil-kt. operate, aid maintain.i tacilitv for years from nlowVhasn' t beenl built yet. Priori-ty IS -~espihedpriod (supplyig poerxr, in this ecase,to the being placed on1 cnsurinIg that newxv installations naotioil distribution gridl) Iad then) transfr thefitcilit) toi a g,,r nItllelit or- otIle pI.,hiL Utl(riV.

(1S THI WORI 11BANK ANN\IKi. Rrnik)r F911) TABLE 4-5. WORLD BANK COMMITMENTS, DISBURSEMENTS, AND NET TRANSFERS IN EAST ASIA AND PACIFIC, 1990-95 (millionsof us dollars;fiscal years)

China Indonesia Philippines Total region start start start start Item 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 Undisbursed commitments 8,956 5,047 1,911 18,260 Commitments 3,000 13,937 1,417 8,632 18 3,432 5,694 31,026 Gross disbursements 2,214 9.325 1,144 7,053 398 3,022 4,536 23,424 Repayments 353 1,337 1,313 4,645 388 1,968 2,972 14,279 Net disbursements 1,861 7,988 -169 2,408 10 1,054 1.565 9,145 Interest and charges 459 1,839 935 4,973 369 1,939 2,199 11,776 Net transfer 1,402 6,149 -1,104 -2,565 -359 -885 -634 -2,631

NOTE:Disbursements from the IDA SpecialFund are included. The countriesshown in the table are those with the largest amountsof publicor publiclyguaranteed long-term debt. Detailsmay not add to totalsbecause of rounding

social security reforrm in Thailand; transport is- by a substaintial body of Fs\V alind aiclose dia- sues in Korea; the labor- market in Malaysia. loule With the government, has expanided Elsewhlere, the Bank is conlcenltr-atinigon pri- rapidly since lendinig activities resumed in fiscal oritv areas where it has greater compar-ative ad- 1994. The Bank's opeerationis ther-e give priority vantage. In Indoinesia, it has reduced its activi- to rural devlopment, human-resource activ- ties in traditionial irrigation and poxver projects ities, and the relhabilitationi of infrastrUcture. and shifted more toward improvinig the quality The B3ankalso chair-s con1sultative groups for of human-resource developmelnt, urban imnani- Inclonesia, Mon,golia, Papua New Guiniea, and agement, and development in the (poorer) the Philippines. outer islands. In the Philippines, the Banlk has In all countries a major- objective of Banik ac- helped the government attract private financing tivity has beeni tc facilitate greater private infor power and other traditional infrastructure volvement in the development process. Given and is shifting its support to activities that sup- the wide diversity of countries, this has taken port developmcnt in rural areas and help pro- different forms in differenit coun1tries. But the tect the environment. Bank support for industry overwhelming lesson from the successftul cOun1- projects in China has been reduced, and mor-e tries in the region is that harnessinu the cnergies attentioni is being directed in its operationis to of the private sector can add greatly to the pros- incorporatinlg enxironimenital issues and address- pects for growth, and, if managed p roperly, as ing urban problems. China has made effective has gener-ally been the case in East Asia, can also use of MA res0uLrces to advance its poverty- reduce poverty. High domestic private savings reduction program and has draw\n on IDA re- rates are a key factor when they are accompa- sources for human-resource development. The nied by sound and stable domestic policy. But Bank's program in the Inidociniiiese states has bcyolnd this, thel-e is ample evidence that the concentr-ated on issues of transition and of fa- establishment of appropriate legal and regula- cilitating aid flo\vs from inter-ested donors. The tory systemns,particularly in econionmiesin transi- latter issue has been supported through donor tion, is vital to promotilng strong domestic pri- meetings chaired by the Bank in Viet NaLim,aid vate sectors and attracting stable foreign groups supported by the Bank in Cambodia and investment. 'rhe regional vice presidency has Lao PDR, and through extensive technical assis- made the development or strengthening of mar- tance. In Viet Nam, the lendinig prograam, aided ket inflfa-str-ucturea central point of its activities.

11(NFhi)R EA-TAN.i: .ANI) P\ClF'l 6() TABLE 4-6. PROJECTS APPROVED DURING FISCAL YEAR 1995, EAST ASIA AND PACIFIC

Principalamount (millions) Country/projectname Date of Approval Maturities SDR US$ Cambodia Social Fund Project June 8, 1995 2005/2035 13.40 20.00 Technical Assistance Project December 6, 1994 2005/2034 11.60 17.00 China Iodine Deficiency Disorders Control Project, June 28, 1995 2001/2015 n.a. 7.00 Iodine Deficiency Disorders Control Project' June 28, 1995 2005/2030 12.70 20.00 Inland Waterways Project June 20, 1995 2001/2015 n.a. 210.00 Southwest Poverty Reduction Project, June 15, 1995 2005/2030 128.60 200.00 Southwest Poverty Reduction Project' June 15, 1995 2001/2015 n.a. 47.50 Seventh Railway Project June 1, 1995 2001/2015 n.a. 400.00 Yangtze Basin Water Resources Project' April 25, 1995 2005/2030 74.80 110.00 Yangtze Basin Water Resources Project, April 25, 1995 2001/2015 n.a. 100.00 Fiscal Technical Assistance Project' April 25, 1995 2005/2030 16.80 25.00 Fiscal Technical Assistance Project' April 25, 1995 2001/2015 n.a. 25.00 Sichuan Power Transmission Project February 28, 1995 2000/2015 n.a. 270.00 Technology Development Project February 28, 1995 2000/2015 n.a. 200.00 Zhejiang Power Development Project February 28, 1995 2000/2015 n.a. 400.00 Economic Law Reform Project October 18, 1994 2005/2029 6.90 10.00 Comprehensive Maternal and Child Health Project October 18, 1994 2005/2029 61.90 90.00 Basic Education in Poor and Minority Areas Project September 6, 1994 2005/2029 69.20 100.00 Shenyang Industrial Reform Project September 6, 1994 2000/2014 n.a. 175.00 Xinjiang Highway Project August 30, 1994 2000/2014 n.a. 150.00 Liaoning Environment Project July 26, 1994 2000/2014 n.a. 110.00 Enterprise Housing and Social Security Reform Project' July 5, 1994 2000/2014 n.a. 275.00 Enterprise Housing and Social Security Reform Project' July 5, 1994 2000/2029 53.10 75.00 Indonesia Second Technical Assistance Project for Public and Private Provision of Infrastructure June 22, 1995 2001/2015 n.a. 28.00 Telecommunications Sector Modernization Project June 15, 1995 2001/2015 n.a. 325.00 Fourth Health Project June 15, 1995 2001/2015 n.a. 88.00 Book and Reading Development Project May 23, 1995 2001/2015 n.a. 132.50 Village Infrastructure Project for Java May 23, 1995 2001/2015 n.a. 72.50 Second Agricultural Research Management Project May 16, 1995 2001/2015 n.a. 63.00 Kalimantan Urban Development Project March 21, 1995 2000/2015 n.a. 136.00 Second Rural Electrification Project February 28, 1995 2000/2015 n.a. 398.00 Second Professional Human Resources Development Project December 15, 1994 2000/2015 n.a. 69.00 Second Accountancy Development Project September 22, 1994 2001/2014 n.a. 25.00 Land Administration Project September 15, 1994 2000/2014 n.a. 80.00 Korea, Republic of Waste Disposal Project December 20, 1994 2000/2009 n.a. 75.00 Pusan Urban Transport Management Project December 20, 1994 2000/2009 n.a. 100.00 Ports Development and Environmental Improvement Project September 15, 1994 2000/2009 n.a. 100.00 Lao People's Democratic Republic Health System Reform and Malaria Control Project January 5, 1995 2005/2035 12.90 19.20 Philippines Women's Health and Safe Motherhood Project March 9, 1995 2000/2015 n.a. 18.00 Thailand Clean Fuels and Environmental Improvement Project May 23, 1995 2001/2012 n.a. 90.00 Lam Takhong Pump Storage Project May 9, 1995 2001/2012 n.a. 100.00 Third Land Titling Project September 22, 1994 2000/2011 n.a. 118.10 Distribution System Reinforcement Project September 22, 1994 2000/2011 n.a. 50.00 Second GasTransmission Project September 22, 1994 1999/2011 n.a. 155.00 Viet Nam Urban Restructuring and Water Supply Project May 16, 1995 2005/2035 110.60 165.00 Irrigation Rehabilitation Project April 25, 1995 2005/2035 67.00 100.00 Structural Adjustment Credit October 25, 1994 2005/2034 103.50 150.00 743.00 5,693.80 n.a. = not applicable (IBRDloan). a. "Blend" loan/credit.

.( THF W&YI I,) B \NK ANNI \1 RI.W . 19I Provision of economilic infrastructure is also v\ital unde r imnplemeritation ar-e CuIrr eIntly raited satis- to pri\ate sector developiment, and that has fig- fac-tory with respect to their- likelihood of ured promninently in the Bank's lending activ i- achieving their- development objectives, and 87 ties Althou0h the Banli does not lend dire(t1v percent of projects exiting super\isioll in fiscal to the priv\ate sector, it is exploring wva's to hellp 199(4 \\ere found to he satisfatitory. Studies by governmnenttsprom)ote necessary longer-term the Bianik'sOperations Evaluation Departmient finiancini for privately financed infrastructure. of comripleted projects approx ed since 1 98() Dissemination of the results and recomenimi- sho)w that St percenit of those in the East Asia dationis of the Bank's SS\t is as important as the and Pacific region met their de\elopment objec- results themselves, and the Banik is being mor-e tives an1d aL-esustLintahble. active in assuLring the wide distributioll of its work in order to enlarge the xvork's impact. A regionaLll studLy of trade and investmilent was widely cliscussed with policymaker-s in all major trading couLntries prior to the November 1994 Asia Pacific Economilic Cooperation meetilig in lakarta. 'The Regional Environnmental Strategy has also beci widelyd dissemninated. A third regional study of the Pacific island members was completed, anid its conclusions were discussed at a regional minister-s' meeting anldelsex\where throughoUt the area. Indiividual country work has also been reaching a wider aiudience. Some 6 (i0)( copies of the economic report on Viet Nam (in English anid Vietnamese) have been made widely available to the public, both inside the country and abroad. This has contr-ibuted to a fruitful dialogue wnithin the counitry on the liberalization process. Reports have been translated and distriibuted in other countries, as well. Improved portJolio perJfirmance. Project effectixveness is a funiction of both quality at entry-well-clesigned pr-ojects-and caref'ul supervision. The Bank has adopted mieasures to improve its project perfor-manice abo\ve currenit lexelsby strengthening thte project-preparatioIn process and b y enhancing supervision. The region's oxerall success rating on projects remains above average-95 percenit of'projects

S, i-'. Fiwn E.r AsiAj.,\N! P.P\( Iht SOUTH ASIA

Im1PI-nig the quality of life hav e led to an era of refor-mi. flexibility. Flows of i:1H1in 1994 is the central development ob- South Asian countrties aire cis- arl-cestimated at about $I hil- jective for the countries of mantling restrictions on do- lion, less thaln olne tenth the South Asia. Despite consider- mestic and foreign private in- amounlt of all private inflow-s able economic potential, rela- vestment, removing tracle to developing coutntries. Nev- tively higlh rates of growth restrictions, and reducing tar- ertheless, total private capital through the 1980s, and slow iffs. Although they have also inflows (currently amoutnt to 2 but steady economic recovery adopted privatization pro- percent of (e, Liand, if used to in recent years, counltries in grams, progress has generally finanace incr-emental high-r-e- the South Asia region are still been slow except in Pakistan, torIlninCstIllenit, they could characterized by wvidespread where, after some initial delay, raise growth rates by at least poverty and unacceptablN low a major privatization program 0.5 perceint annuall'. How- standar-ds of living. One fifth is ulldel- wav (including indus- ever, in the near--tern, inflovs of the wvorld?spopulation lives trial enterprises, banks, and have tended to appireciate real in South Asia, but it is hotne energy and telecommunica- exchange rates, mainly by to near-ly half of the wvorld's tions companies). Financial fueling inflation, for example poor-between 400 million imarkets are being liberalized in India and Sri Lanka. and 500 million people. across the region, providing Challenges for the future. Per capita gross national greater scope for private par- Reducing poverty, improv ing product (GNE') in the region ticipation and nmarket determi- living conditions, and sustain- ranges from a low of $9Q0 in nationi of interest rates and ing economic growth are criti- Nepal to a highi of $900 in the cr-edit allocation. Ther-e has cal developmiienit issues facing Maldives; witlh the notable ex- also been a substantial relax- countries through1out the re- ception of Sri Lanka and sev- ation of exchange and capital gion. The region's growvth eral states in India, living con- controls. For example record was good durin- the ditions are harsh. Only in Bangladesh, India, Pakistan, 1980s, and there is cornvincingl Africa is life expectancy lower and Sri Lanka removed re- evidence that higlh growth One out of every ten clhildreni maining exchange restrictions rates raised per capita coni- horn dies before the age of on currenit account transac- sumption at all incomie levels one. Poor health anld high tions in 1994, whlile Nepal and caused levels of poverty to rates of malnutrition are ac- had done so earlier, fall. However wxvhileorovth companied by lov levels of lit- Interniational finatncial mar- rates were high, they were not eracv-as of 1990, onnly45 kets have reacted favorably to sustainable, and, in many parts percent of Soutl Asian miieln these reforms. In 1994, port- of the region, rising per capita and 3 1 per.cent of wvoren folio equity inflows increased consuLmrptionlevels \ere not could read and write. Recent significanitly amoulltilng to accompanied by commiiiienisu- estimates suggest that nearly ablout one fifth the total flowvs rate improvemenits in social half of all chiildlrendo not even to all developing countries, indicators. To ensure contin- complete primary school. This nex-found access to in- ued economnic and social The development strategy ternation.al capital markets progress, countries of the re- of the countries in the regioni mark-ksa major change in the "ion -vhether thev be small, has traditionally been inward Southi Asia economic environ- islanid econiomilieslike the oriented, aLid the public sector nent. But inflows, particularly Mlaldives or semi-inidustrial gi- has beeni given a large role in of foreign direct investment ants like India-must address the economyl. But incr-easilng (I v)j)Con1tilnuC to be hamn- five major- challeniges: pressur-es for faster progress on pered hb btureaLucraticregula- * They must stay the course growth andc poxertv redcuctioni tio n and low lahor-maiLirket on macroe-onomnic refo-ms.

72 TiinWosi.:VoRiu e A\\' \i Ri i t)n). * Econonmicreforms, aimed at higher growtth Economic growth and the private sector. antd greater economic resilience, must he ex- The broad coniseinsusin developnunt thinking tenided and deepened. -borne bv the successes and failures of past de- * Coverage of crucial infrastructure services cades-is that counitries do better, hoth in generat- miust be expanded. ing growth and rediucing poverty', with more * Measurable steps to reduce poverty and market-friendly policie'Kand outward-lookinig improve livino concditions to fturther develop the strategies. Economywxide,this means staLting with human-resoturce base are essential. macroeconomic stability and developing a leaner * NatuL-alresoul-ces must be managed so that and morc etficiellt public sector. the region's development path is environmen- Private sector development is essenitial for tally sustainable. generatin,g and mainLtaiiningeconomic growth.

TABLE 4-7. LENDING TO BORROWERS IN SOUTH ASIA, BY SECTOR, 1986-95 (millionsof us dollars;fiscal years)

Annual average, Sector 1986-90 1991 1992 1993 1994 1995

Agriculture 864.3 773.0 346.1 480.7 387.8 551.3 Energy Oil and gas 218.6 735.2 330.0 - - 120.8 Power 999.2 200.0 730.0 960.0 230.0 250.0 Environment - - - - 14.7 168.0 Human resources Education 221.5 307.1 145.6 339.0 220.0 423.7 Population, health, and nutrition 104.1 388.5 377.5 827.0 233.1 257.9 Social sector ------Industry and finance Industr=y 198.7 528.0 - - 250.3 3.2 Financial 419.8 123.5 28.4 65.8 - 916.0 Infrastructure and urban development Telecommunications 89.0 57.0 55.0 - Transportation 294.9 178.9 306.0 120.0 491.3 - Urban development 220.5 - - - 246.0 39.0 Water supply and sewerage 115.4 306.6 - 208.2 - 275.8 Mining and other extractive 68.0 - - 12.0 - Multisector 120.8 7.0 680.2 403.5 - Public sector management - - - - 296.8 Tourism -

Total 3,934.7 3,604.8 2,998.8 3,416.2 2,370.0 3,005.7

Of which: IBRI) 2,376.7 1,540.1 1,348.0 1,145.0 474.0 1,584.8 IDA 1,558.1 2,064.7 1,650.8 2,271.2 1,896.0 1,420.9

Number of operations 30 30 24 26 19 18

NOTE:Details may notadd to totalsbecause of rounding. -Zero.

S,I TI N F, .1 S( H'THAKIA 7 3 The region has made progress in prom-oting the unidertaking private sector assessmenits. These private sector in three areas: (a) reforminiig fiscal assessm-ents aim to identify the obstacles that anid finiancial incentives and the regulatory and private firms believe are blocking expansion. legal environments to improve the enivironment Assessments have beeni completed for Inidia and for private sector developmient:, (b) privatizing Sri Lanka. An assessment is currently being pre- those public sector activities that are m-ore effi- pared for Pakistan. cientlv carried out by private sector; anid Tw,,oleniding operations that support finanicial (c) openinig sectors to private investmenit that sector reforms were approved during the past had previously been reserved for the public sec- year. The Bank's largest-ever loan to India, for tor. The Bank has taken steps to im-prove its $700 m-illion in support of the Financial Sector suipport to private sector development. For ex- Development Project, is assisting in the nmod- ample, startinig in 1 994, it broadened its efforts ernizationi of that country's bankinig systemi. to help Inidia in mobilizing global resources Reforms supported by the loan will m-ake it from private sources. The Aid India Conisortium possible for India to move forxvard with a more was replaced by the India Developmenit Forum, diversified anid comipetitive finanicial sector. The which inicluded discussions with both official reforms support the central government's finan- donors anid, for the first timTe,private sector cial sector reform agenda through recapitalizing representatives. A similar approach was fol- and restructuring state-owned banks and allow- loved for the 199 Pakistan, and Sri Lanka Aid ing banks to raise capital from the market. Consortium s. These reforms are expected to strengthen The Bank is discuissing with all couintries in India's banking system and contribute to the de- the regioni the need to stay the course on the velopment of capital and money markets. The macro policy front and to continue accelerating $216 million Financial Sector Deepeninig and trade and financial sector reforms. It is also es- Intermediation Project in Pakistan will tablishing closer links with the private sector strengthen the regulatory framework untder and developing a better assistance strategy by which banks operate aned expand the long-term supply of credit to private e uterprises.

7 4 THEN'OL\'VUA BA NK A NNuAli RE IORT 199 5 Sectoral policies and reforms are also cruLcial. and easier entry for the private sector. In For example, infrastructural bottleniecks-par- Bangladesh, a $1 20.8 mIillioinIDA credit is assist- ticularlv in roads, power, ports, and telecommu- ing the government in implementing further re- nicationis-slow private sector expansion. Agri- forms to improve the enabling environmenit for cultural reforms are also important; this sector private participation in the natural gas sector. is a key source of income for the rural poor in Addressing the needs of the poor. Economic South Asia. growth alone is not sufficient to address the The Bank's efforts to help meet the region's needs of South Asia's poor. Around the world, massive infrastrtucture requirements have fo- on average, increases in per capita incomiie levels cused on developing mechaniisms to improve ef- have been accompanied by improvements in ficiency and expand private sector participation stanidards of living of the poor; but the relation- in the funding and management of basic infra- ship is not inevitable. Evidence suggests that the structure. Progress to date has been limited to pattern of public spending, and, in particular, utilities (power, telecommunications, and gas) spending on basic services-ediucation, health, and transport. During the past year, a $250 mil- nutritioni, and family planning-and safety net lion operation was approved to assist the gov- programs has an important effect on living stan- ernment of Pakistan increase the prixate sector's dards. Furthermore, this eflfect is distinct from role in the development, ownership, and opera- that of increases in private income levels and tion of power and related infrastructure by pro- concomitant reductions in poverty. viding long-term financinig through a replenish- As a part of ongoino reforms, most countries ment of the Private Sector Energy Development in the region have taken steps to reorient public Fund for subprojects that are either under spending to better address the needs of the implementation or are shortly to be launched. poor. Bank-led public expenditure and invest- In India, efficiency, accountability, and competi- ment reviews are discussed annually with the tion are being encouraged through greater pri- governments of Pakistan and Sri Lanka, and a vate sector participation in the power sector. review of education spending was completed Efforts are also uinder way to improve the effi- this past fiscal year for Bangladesh. ciency of transport operations in India (railways, Bank support for humani-resource develop- roads, and ports) by introducing commercial ment in South Asia has expanded rapidly since principles, nore efficient pricing policies, the late I 98(s. For example, in the period

TABLE 4-8. WORLD BANK COMMITMENTS, DISBURSEMENTS, AND NET TRANSFERS IN SOUTH ASIA, 1990-95 (millions of us dollars;fiscal years)

India Pakistan Bangladesh Totalregion start start start start Item 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 Undisbursed commitments 9,084 2,908 1,662 14,769 Commitments 2,064 11,851 706 3,703 184 2,205 3,006 18,900 Gross disbursements 1,783 11,576 691 3,503 287 2,010 2,939 18,223 Repayments 1,062 4,632 235 920 42 152 1,359 5,807 Net disbursements 721 6,943 456 2,583 246 1,858 1,580 12,416 Interest and charges 904 4,737 233 1,108 44 218 1,203 6,183 Net transfer -183 2,206 223 1,475 202 1,640 377 6,233

NOTE: Disbursements firom the IDA Special Fund are included. The countries shown in the table are those with the largest amounts of public or publicly guaranteed long-tenn debt. Details may not add to totals because of rounding.

Sl-( I ION Fei IR SOI l-FH ASIA 75 1986-90, lendinig for education, healthi anid nu- underinvestnenit in sanitation and waste man- trition, and family planning accounted for 8 agemeit, and inadequiate protectioni of soils andc percenit of the total portfolio. In fiscal 1 995, it forests. accounted for 23 percenit of the portfolio. The Promoting sustainiable agricultural growth is Bank's strategv for the social sectors has three crucial for Soutl Asia. Although traditionally elements: (a) improving coverage and quality of the slowest growing sector, agriculture currently services; (b) improving efficiency and cost ef- accounlts for 32 percenit of Soutil Asia's (Go' and fectiveness; and (c) developing innovative ap- employs more than 50 percent of the labor proaches to expand community participationi to force. Agriculture is a key source of inicomie for ensure service improvements. There has been a South Asia's poor A substanitial share of Bank shift awayfromii focusing solely on the public lendin,g is directed tow-ard agriculture, with the provision of services and-as in other sectors- aim of increasing outptit levels, particularly for a rcthinkinig of the role of pulblic and private smallholders. Much of the ongoing dialogue sectors. The Bank is wvorkingclosely with mem- with memtbe-r couLitries has focused on ways to her governllllelnts to idenitifv areas wllere there is increase private investmenit in the sector and to a need for- mor-e public sector involvement, ar- reduce the role of government in the supply eas that are hetter left to private providers, and andl distributioll of agricultural inputs. A null- ways to encouragc stronlgelr partnerships bc- her- of critical issues-such as reducing fertilizer tween governments, the private sector anod noii- subsidies in India and Nepal for example-have goverilnmental organizations (N(c;(S). beenl addressed in recenit public expenditure re- The Soutil Asia region is host to some of the viexvs.A substanitial amount of economic and woi-rld'sbst-knOv,ln N(,) groups; the diverse sector work in agriculture is either ongoinig or programs suppor-ted by thtem have great poteni- has recently been completed for Bangladesh, tial ftor helping to reduce poverty and improve InLia, Nepal, andc Pakistan. living conditionis in the region. In s(olle Banik- Within the agriculture sector, research and assisted projects, N(>osplay a role in the delivery extensioni has a high payoff in terms of in- of services-for example, in the S59.8 million creased yields and higher profits Researci and Integr-ated Nutritioni Project in BaLigladeshi(ap- extension is the focus of the $59.5 million Agri- proved in fiscal 1(995), the Cataract Blindiness culture Human Resources Development Project Contr-ol Proje-t in India (approved in fiscaLl in India. The project seeks to improve the qual- 1994), and the Rural Water Supply' and Sanita- ity and relevanice of higher agricultural education Funcl Project in Nepall (ullder- preparation tion and in-service training programs and in fiscal 1995). strengthen the capacity of participating states to Ensuring sustainable development. The clevelop and manag"e humnan resources. regioll's currenit development strategies biold the Thle lack of water is a key constraint to a promnise of sustained, poverty'-redicinig eco- more rapid expansioni of a-riculturql output in nomic growth. This groxvth, superimposecd on a many parts of South Asia. The Bank is providing raLpidlygrowingii and urbanizing population, will support for overall w*ater-resources maniagemenit put more pressure on air, xater, and land re- and for expaLisioniand improvement of irriga- souL-ces.Problems aLrealready apparent: In maniy tion infrastructure (canals and tuhbewells, for areas, thrt-e are increased levels of air andcwater instanice). A strategy paper for the irrigation and pollution, contamination by toxic wavstes,soil dr-ainiagesector- in Pakistaniwas completed dur- erosion, lancl degradation, and defor-estation. In ing the past year; it calls for niarket forces to addition, the environimiienitis adversely atffected play a larger role in the sector Recogniition of in many couLitries by the presence of incentive individual water-property rights was identified regimes that encourage bad environmental prac- as crtcial for impr-oving the efficicncy of tices-intenisive use of high-polluting energy, in- Pakistan's water-distr-ibutioni system. An en- efficient use of surfLicewater andt groundwlatcr, hanced role foir local farmers' groups and broader commniuity participation was also en-

.6 I iit'ii.t'r BANNK ANNI \i R'ipr 1995 TABLE 4-9. PROJECTS APPROVED DURING FISCAL YEAR 1995, SOUTH ASIA

Principal amount (millions)

Country/project name Date of Approval Maturities SDR US$ Bangladesh Integrated Nutrition Project May 30, 1995 2005/2035 40.10 59.80 Gas Infrastructure Development Project May' 9, 1995 2005/2034 83.4(0 120.80 Jute Sector Adjustment Credit (supplemenit) December 8, 1994 20(04/2034 2.30 3.20

India Tamil Nadu Water Resources Consolidation Project Juine 20, 1995 2005/2030 181.90 282.90 Second Madras Water Supply Project June 20, 1995 2001/20]5 n.a. 275.80 Assam Rural Infrastructure and Agricultural Services Project May 25, 1995 2005/2030 81.00 126.00 Agricultuiral Human Resources Development Project March 30, 1995 2005/2030 40.50 59.50 Madhya Pradesh Forestry Project March 30, 1995 2005/2030 39.40 58.00 Capital Restructuring Loan Agreement March 23, 1995 20(00/2015 n.a. 350.00 Modernization and Instituitionial Development Loan Agreement March 23, 1995 1998/2005 n.a. 150.00 Backstop Facility Loan Agreement March 23, 1995 2003/2009 n.a. 200.00 Andhra Pradesh First Referral Health System Project December 1, 1994 2005/2029 90.70 133.00 District Primarv Education Project November 22, 1994 2005/2029 180.00 260.30 Industrial Pollution Prevention Project, July 26, 1994 2000/2014 n.a. 93.00 Industrial Pollution Prevention Project July 26, 1994 2000/2014 n.a. 50.00 Industrial Pollution Prevention Projecta July 26, 1994 2004/2029 17.70 25.00

Maldives Second Education and Traininig Project April 11, 1995 2005/2035 9.30 13.40

Pakistan Punjab Forest Sector Development Project June 20, 1995 2005/2030 16.00 24.87 Population Velfare Program Project March 14, 1995 2005/2030 45.00 65.10 North WVestFronitier Province Primary Education Program March 14, 1995 2005/2030 104.00 150.00 Second Private Sector Energy Development Project November 29, 1994 2000/2015 n.a. 250.00 Financial Sector Deepening and Intermediation Project November 15, 1994 2000/2015 n.a. 216.00

Sri Lanka Colombo Environmental lmprovement Project June 29, 1995 2005/2035 24.80 39.00

956.00 3,005.70 n.a. = not applicable (IBRD loan). NOTE: Details may iaot add to totals because of rounding. a. "Blend"' loan/credit.

couraged. Thle Balochistan Community Irrigal- Protectin.g the natturalresources of the region tion Project, currenitly Linder p reparationi, ad- is a complex and long-terim process. Govern- heres to the sector strategy artictilated in the menits face ditficult policy dilemmas as they paper. ComLmunLitymanagement and mainte- search for ways to accelerate "rowth and still nance of locafl irrigationi infrastructure are full- en1stireenvironmental sustainability. Some damental parts of the project. I ocal participa- progress has been made in recenit years in ad- tion is also important in a series of state-level dressing these issues. National environmental water-resources projects under preparationi in action plans (NFv.x's) have been completed in all India (one stich project-the S282.9'-million coutntries of the region, and follow-tip worlk is Tamil Nadti Water Resotirces Consolidationi in progress. Parallel to the NrlAlI process, explicit Project in lnclia-was approved dtirino the steps are being taken to strengthen enviroinmeni- year). The prolects are designed to improve tal management. The Banlk is assistinig in this planning and allocation for all wvater uses, and process. In India, for example, SiiRDand r):\ fo r agriculttire, the largest tiser of water, en- ftundsare stipporting, the strengthening of four hanced efficiency of use.

StE rl()N F, R SOI TH A,>IA state pollution-conitrol boards, with the aim of projects in the region has fallen steadily since enhancing their technical capability to monitor fiscal 1991. and enforce pollution regulations. Funds will To achieve enduring improvements in project also be onlent to highly polluting industries to implementation, certain governance-related encourage them to adopt cleaner technologies. issues-accountinig, audit, and procurement, for Improving portfolio performance. Intensive example-are being addressed in several coun- work has been carried out in recent years to re- tries. Successful completion of this work is ex- assess potential project impact on the basis of pected to improve the enabling environment for the past and present record of project imple- a greater private sector role in economic mentation, institutional capacity, and the politi- activities. cal will to undertake policy actions essential for project sustainability.As a result, components of several projects have been reoriented, and efforts continued during fiscal 1995 to turn around problem projects, as well as to further improve performance, sustainability, and development impact through project restructuring. Project proposals are now consistentlv screened with a view to ensuring that their design is simple and that major policy reforms are in place. The use of pilot projects has been extended, supervision plans make explicit provision for mid term reviews, and an increased borrower role in supervision is being actively pursued. Portfolio-management practices have been strengthened by increasing the organizational support for sectoral supervisioni,enhanicing the role of resident missions, and, more generally, by seeking to foster an implementation culture among managers and staff. As a result of all these measures, the number of problem

78 THE W\l?RLD BANK ANNLAI. RFP(ORT 1 995 EUROPEAND CENTRAL ASIA

The recenit output perfor- critical to put together mod- tive and legislative branches of mance in the Europe and ern tax systems with a large the government and the cen- Central Asia (ECA) region base covering the emerging tral bank-was put into place shows that countries that ad- private sector and to redirect during the first half of 1995, vanced early and more rapidly public expenditures to the incorporating strict ceilings on on the road toward stabiliza- highest priority areas. Thus, it credit expansion and aiming at tion and struLctural reformis crucial to move from subsi- a sharp reduction in inflation Albania, Estonia, and Poland, dizing enterprises to subsidiz- by the end of the year. This for example-are experiencing ing the most vulnerable citi- program is accompanied by a recovery of output. Positive zens, that is, from protecting further liberalization measures rates of growtlh were regis- enterprises to protecting the in the energy sector, particu- tered for counltries in trarnsi- poorest households. larly oil exports. tion throughout Central Sustaining output recovery Activities of the Bank. The Europe and in the Baltic in Central Europe will require volume of lending to the states; the process has been accelerating privatization (and countries of the ECA region in- helped by the end of recession provision of postprivatization creased from $3.7 billion in and the subsequent recovery investment financing), reform- fiscal 1994 to $4.5 billion in of import demand from West- ing the banking sector, im- fiscal 1995, and the number em Europe. Where reform has proving access of privatized of operationis increased from been delayed, output decline firms to term financing, and forty-two to fifty-eight. Some has been extremely sharp; dur- increasing the financial disci- $1,741 million, or 39 percent ing 1994, for example, official pline of those enterprises that of the total, was committed GDP fell some 20 percent in remain in the public sector. to nine projects in Russia. Belarus and UJkraine. This is particularly true for First-time borrowers included The containment of central Bulgaria and Romania. In Azerbaijan, Georgia, and bank credit to finance the lHungary and Poland, where Turkmenistan. Gross disburse- budget and directed credit to important reforms were origi- nments increased as well, up state enterprises has been cru- nally made in these areas, ef- from $1,980 million in fiscal cial for stabilization. But this forts to deepen the process 1994 to $2,677 million. Bank has not been easv-particu- must he renewed. support to the region spans larly in the nexvly independent Some positive developments sectors and lending instru- states of the former Soviet are taking place on the policy ments, and intensive econio- Union (rsu). As the tax base front in many of the newly mic work and policy dialogue shrinks (in the Russian Federa- in.dependent states of the FsU.r complement lending activities. tion, tax revenues fell by l.atecomers to the reform The Bank has sharply about 10 percent between process, such as Ukriaine anLd stepped up its assistance to a 1992 and 1994, and the pres- Uzbekistan, have now devised numn-be of couLntries that have sure to continuLesubsidies re- major programs of stabiliza- recently put together compre- mains) governments face diffi- tion, price liberalization, and hensive programs of reform. cult choices. In terms of their privatizationi. The end of con- Rehabilitationi loans, support- fiscal repercussions, sector flict in Armenia, Azerbaijani, ing overall economic liberal- policies, such as recapitaliza- and Georgia has allowed those ization and privatization, were tion of banks, pension and so- counitries to focus on economic approved for Armenia, Geor- cial transfer policies, and pub- reform and structural change. In gia, Ukraine, and Uzbekistan. lic investment programs, have Russia, a new program of stabi- In each case these rehabilita- to be carefullv weighed. In lization-reflecting an emerging- tion loans were accompanied such situations it becomes consensus among the execu- by investment loans to help

SECTION FOs)R EiIR,DPEAND CENTRAL. AsIA 79 stem the deterioration of key infrastrulcture, in- tation of a more transparent and competitive clUding energy anid agricultural irr-igation,. allocationi of scar-ce pipeline rights. During the A second -eneration of adjustment operations year financial and enterprise adjustmenit opera- is supporting thle Contilnuation of sectorvide tions were approved for Albania and the former reforms in Kazakhstan, Kyrgyz Republic, Ytigoslav Republic of Macedonia. These opera- Moldova, and Russia. In Russia, the $60(( mil- tions are designed to further privatization ef- lion Seconid Rehabilitation Loan is supporting torts and financial sector reforms and to en- key measures to liberalize the energy sector- haince financial disciplinie in enter-prises that particularly energy ezports-and the implemen - remaiii in the public sector. Debt-reduction

TABLE 4-10. LENDING TO BORROWERS IN EUROPE AND CENTRAL ASIA, BY SECTOR, 1986-95 (millionsof us dollars;fiscal years)

Annual average, Sector 1986-90 1991 1992 1993 1994 1995

Agriculture 241.6 100.0 155.0 525.4 582.9 157.0 Energy Oil and gas 28.0 520.0 246.0 703.0 856.1 285.3 Power 234.6 600.0 270.0 - - 132.7 Environment 3.6 - - - - 123.0 Human resources Education 59.3 250.0 - 67.0 59.6 40.0 Population,health, and nutrition 15.0 - 280.0 91.0 - 220.4 Social sector - - - - 10.9 127.5 Industry and finance Industrv 253.9 100.0 60.0 - 375.0 - Financial 275.7 710.0 - 55.0 280.0 232.0 Infrastructure and urban development Telecommunications 14.0 270.0 - 30.0 153.0 - Transportation 233.9 300.0 - 378.0 352.0 486.0 Urban development 29.0 - 200.0 285.0 171.0 418.0 W4lratersupply and sewerage 132.0 - 32.0 129.5 109.6 161.0 Multisector 120.0 1,017.0 691.1 1,245.0 566.3 2,049.0 Public sector management - - 209.2 335.0 210.0 66.9 Tourism - - - -

Total 1,640.6 3,867.0 2,143.3 3,843.9 3,726.4 4,498.8

Of which: IBRD 1,640.6 3,867.0 2,102.2 3,739.5 3,533.3 3,953.8 IDA - - 41.1 104.4 193.1 545.0

Number of operations 12 19 14 30 42 58

NOTE: Details may n0otadd to totalsbecause of rounding. - Zero.

80 THI Mv)V)1) BANK ANNIi\i Rri )Ki I I19)9 '~~~~~~~~~~I-

A,~ ~ ~ A-

tiperatitll i I'm1dIia Polaildi\ iilflip1 .iMMC i Jiic,1i I'l- Iin-1 tt\\ itIsiliidiin 1 iithst.counltries, eganil itoes to iiltcrllatlonai~ redk'itors(11 ilt ]iillieill. 1t'iitiu "v\'5teills tilt

Supporting the emyergeniceol'the priattie 1 iJtsilimu-I 11 titotlit' t()ltgil le1w5 flu- sector. Tihrotiglith isdlt tiltha il, i>si - Ite oil try-'~po ~ tetlMdill 8ll1Y,1is ill St tilleco ii-1-

ptortiing tmistilt'ship i ndle,iiptt\rilei,ts, ill tries, patitu 01,Lii \' orilWI t t_il-lers to tile, retitrill tile legl id e,ililoillit eml iiiuillllt'illt toyt rvt progralill. 'Fli tImigih it', Idj I'tistlleilt opler~atiOils, 1 sec tol "rc'twtii, aim1 iutreased 8sssof tilt lrF- tlit'Ban1k k ha,is Hiig poltiiy s tiit replac:e state

\Sate5c t(lftt) t redit. [H15 ito reilltti b[simless 0ticiets WSitih o(II iptitiVe ptIOi UirtIlliClt (i illited (tistliils i at(lI)iv Ill ai i tilt' Ot1iiltr\ kceo(- to tile staites )\II niieedsj bretAlLup t1radiilg 811(1- nltmil itimeimotrainda prodticed tot- the coo-1 I-iCtis ltraimport mli llItpod ite-, dind11 impove private see- (Ittilt re-ioin. 'Separate private sector dswses- titracestto~i t)ilIl iettidi teal estate. illenlts (1555s), based onl inlter\ iews vS'ith ejitre- FIn dil etffort tt II I-ctese tIle voV)ItLIIlle nt cIfetlit

pi-cileurs, 11850ibtri (tillited for- Hull garyVaild 85a beto tilt oIllergiilg' privsate Settot, thle [Lithuallia: tilesedlocuilleilt busiilt'ss, oonStailmlts Banklk is ssis,ting ill resttivillgthe po-t'loijo probl- as seenl by tlileprivate sec-tor aind 855tss,stile po- tcis ofi sutat b,iks and lit14aiiotv dtioiis (o1 tttAKII filt illtra~SrUHCtIIre privdti7a1tioil at tile additirtioldil crtiit to iarge ioss-_ilikintg staite ell- etitrad aind lottai le (ic\s. tc'rprist's. Inicounltries With mlltre iiltipeild ntit Prog'ra is of ill ds privatizatioil are aiso bingii 4 bIl nks alld a st rtniger prL(Iteil ti al tramleovork ass,isted thlrtbugil tile Bailik's adCiLltistllilt tipera- (Poiaind, tot- iilstailce),tile t rt'-iitoriailks' thieill- tiotuis. Raipid ptivatizationl is esseintial; it leceds, SeiVC5(parItic:Ipate- ill LuCII sVtIrkniUtSw\ithl tile il0\sover, tol be accoimpaniid b\t shiits iil einter- d(ietor eiltetpris,es. lIncoutrieiiis whiltre bailks prise: gIovernaince and a streingtht'inll of crt'di- Iiack tile eirSA ilt t apaicitv, tile prt'f(rretid ap- tots' rigilts. Tile Bank's tecihnlicalassistailte prnt- proacil is to)isl te ie large iloss-tilaktrs fr-om-

'rIi-dll tiher'ftOte, is helipinlg tol sihape ieg,ai r-e'ti lalis t)I tt'i-C-it. Budgetary support is illade a\aiiable Oil i', thtiese Ill(iley-iosi 14 firiliis

SI It FN Fo' [ii Ii 't i NIt CF NTRS\i AsAF downisize ancd restructure. Assistance in this area come distribution. The majority of poor house- has been central to the adjustment operations holds are working poor or have uLnemployed approved during the year for Kazakhstan and members. In some countries, poverty is shallow, the former Yugoslax Republic of Macedonia. with households buLnched around the poverty Because the process of unfreezing bank lendinig line. In others, there is greater depth of poverty (largely tied up inl rollilngover nonperforming hut evidence of movemenlt of many households loais) anadredirectinig credit to the private sector in and out of severe poverty These findings sug- will take some time, the Bank, in the interim, is gest that growth of output and employment is providing resources directly to private firms. at the center of the solution. Credit lines wsereapproved in fiscal 1995 in the At the same time, it is critical that steps be three Baltic states; these were componenits of in- taken to prevent leaving groups behind. Social novative operations that included equitv transfers and safety nets, while costly in many cofiniancing from a capital fund created by the countries, failed to mitigate the increase in Swedish governmenit and technical assistance inequality and protect the most vulnerable fuLnded by several interniationial donors. A groups, including families with many children postprivatization and credit program wvasap- ancdelderly noniworking pensioniers. Structural proved for Kyrgyz Republic, and an inniovative unlemployment has increased. Measures to pre-export guarantee project was approved for make government programs and policies more Moldova. effective in this area were addressed by several Poverty anid the protection of social services. operations during the past year: DuLringfiscal 199)5, the Bank accelerated its * Adjustm-nentoperations in Georgia, analytical work on poverty issues so as to iden- Kazakhstan, the former Yugoslav Republic of tify better operational prior-ities. Compreheni- Macedonia, Moldova, and Ukraine are support- sive poverty assessments were completed for ing measures to better target anti assure the Kyrgyz Reptublic, Poland, and Russia, and xvork sustainability of transfers (particularly in other countries is well uLnderway. The pov- pensionis); erty assessments reveal an increase in poverty, * the Second Rehabilitationi Loan for Russia stemming from an overall decline in income andt supports measures to ensure that the country's employmenit, comiibinedciwith a worsening in- unemployment fund focuses its resources on

TABLE 4-11. WORLD BANK COMMITMENTS, DISBURSEMENTS, AND NET TRANSFERS IN EUROPE AND CENTRAL ASIA, 1990-95 (millionsof us dollars;fiscal years)

Russia Turkey Poland Total region start start start start Item 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 Undisbursed commitments 2,303 2,370 2,302 10,710 Commitments 1,741 4,631 250 2,469 215 3,872 4,499 20,270 Gross disbursements 142 729 288 2,372 585 1,789 2,677 10,343 Repayments - - 866 4,280 - - 1,205 7,388 Net disbursements 142 729 -579 -1,908 585 1,789 1,472 2,954 Interest and charges 48 74 414 2,808 107 252 905 5,019 Net transfer 94 655 -993 -4,716 478 1,537 567 -2,065

NOTE: Disbursements from the IDA Special Fund are included. The countries shown in the table are those with the largest amounts of public or publicly guaranteed long-term debt. Details may not add to totals because of rounding. - Zero.

82 THE WORLD BANK ANNI 'AL RIFPoIRT 1 9L95 BOX 4-3. CONFRONTING THE HEALTH-CARE CRISIS Two challengesin particular confront the health- In the first projectof its kind, this divestitureprocess care system in the ECA region:immediate shortagesof is beingsupported in Kazakhstan, where the reha- suppliesand services,especially in the countriesof bilitation of critical health and early childhoodfacili- the former Soviet Union, and the need to introduce ties in five citiesis beingfunded, along with funding structural change.In Russia,for example,per capita for incrementalcosts on a decliningbasis, as a pre- consumptionof pharmaceuticalsfell by half from lude to a national strategy.The PrivatizationImple- 1989 to 1993, while the availability of cardiovascu- mentationAssistance Project in Russia, approvedin lar drugs declined by a third; in the KyrgyzRepub- fiscal 1993, was amended to include a componentto lic, the shortageof pharmaceuticalsis so acute that improve the nutritionof preschoolerswho attend kin- routine surgeryhas almost ceased;and in Georgia, dergartensthat have been transferredfrom state- patients need to bring their own drugs,linens, and owned enterprisesto municipalgovernments. lamps for surgicalinterventions. Health projectsare also addressingneeded struc- The Bank's health portfolioin the regionis grow- tural changes.These includestrengthening primary ing:Four health projectsare already under imple- health care services(with a particularemphasis on mentation, and duringfiscal 1995, health projects maternal and child health) and developinigpublic were approvedfor Albania, Croatia, and Estonia.' health interventionsto encourageeffective promotion In Albania, thefocus is on the rehabilitationof ser- of healthy lifestylesand integrateddelivery of pri- vices, while in Estonia,the emphasis is on support mary health care (as, for example,in the health for health-promotionand disease-preventionpro- projectapproved for Estonia). grams.Responding quickly in Croatia, the Bank approved a projectwithin six months of identification addressingcritical shortages of basic equipmentfor the emergencymedical system, intensive care units, and perinatal care units in selectedhospitals. 1 A SecondHealth Project,for $150 million, was also approved for Turkey.Turkey's health-care needs, hoteer, are quite distinct The Bank is also supportingthe transferof critical fromthose of other ECA countries.Global health indicatorsin social assetsfrom restructuringenterprises (which Turkeyhave improvedto a point where many are nou)comparable used to provide many social services;especially with those of other countrieswith a similarper capitaincome. In Turkey,the burden of diseasereflects regional dispanities in, for inin the former Soviet Union, but which now face stance,the health and status of women, educationof parents, the hardened budgetconstraints) to local governments, prevalenceof malnutrition,and in the availabilityof clean water unemployment-compensationi payments rather transfer of kindergartenis operated by state- than on financing transfers to enterprises to sus- owned enterprises (soFs) to local governments. tain output; and In the first project of its kind the transfer of so- lloans wer-e approved for Kyrgyz Republic, cial services from sc)s to local governments in the former Yugoslav Republic of Macedonia, five cities in Kazakhstan is being assisted; the and Romania to assist in the redesign of more project is financing the rehabilitationi, as wvellas targeted transfer programs and the provision of the incremenital recurrent costs, of critical employment and retraining services to equip health and preschool facilities transferred from workers for change. the SOES. Severing the link between social ser- A pressing problem throughout much of the vices and employment also facilitates mobility region is to avoid the collapse of key social ser- of workers. vices previously provided by enterprises noxv in The quality of basic health services in much the process of downsizing or closure. Transfer- of the region has beenl deterioratino alarmingly. ring these services to the care of local govern- In response to this crisis the Bank committed ments is essential. In Russia, a S90 million tech- funds to help finance four basic health projects nical assistance project, approved in fiscal 1993, durinig the year; another five are under prepara- stipporting mass privatizationi was restructuL-ed tion (see Box 4-3). Most have comiiponienltsto during the past year to permit a portion of the strengthen maternal ancl child health care, pub- remaining funds to be used to support the lic health, and emergency care. In addition, the

SFt TI( N\FOI IR FE cROErANP CrNTRAI Asi N 53 TABLE 4-12. PROJECTS APPROVED DURING FISCAL YEAR 1995, EUROPE AND CENTRAL ASIA

Principal amount (millions)

Country/project name Date of Approval Maturities SDR US$ Albania Rural Roads Project May25, 1995 2005/2034 10.10 15.00 Rural Development Project February 14, 1995 2005/2034 4.10 6.00 Power Loss Reduction Project January 24, 1995 2005/2034 3.40 5.00 Health Services Rehabilitation Project November 8, 1994 2005/2034 8.60 12.40 Irrigation Rehabilitation Project September 6, 1994 2005/2034 7.10 10.00 Enterprise and Financial Sector Adjustment Credit August 2, 1994 2005/2034 10.60 15.00 Tax Administration Modernization Project July 26, 1994 2005/2034 2.83 4.00

Armenia Rehabilitation Project February 28, 1995 2005/2030 41.50 60.00 Power Maintenance Project December 8, 1994 2005/2029 9.40 13.70 Irrigation Rehabilitation Project December 8, 1994 2005/2029 29.40 43.00

Azerbaijan Greater Baku Water Supply Rehabilitation Project June 28, 1995 2005/2030 38.80 61.00 Petroleum Technical Assistance Project April 20, 1995 2005/2029 14.30 20.80

Bulgaria Debt and Debt Service Reduction Program September 22, 1994 2000/2014 n.a. 125.00

Croatia Highway Sector Project April 20, 1995 1999/2012 n.a. 80.00 Health Project February 14, 1995 2000/2011 n.a. 40.00

Estonia Haapsalu and Matsalu Bays Environment Project April 20, 1995 2000/2010 n.a. 2.00 Health Project January 19, 1995 2000/2010 n.a. 18.00 Financial Institutions Development Project October 18, 1994 2000/2010 n.a. 10.00

Georgia Rehabilitation Credit March 30, 1995 2005/2030 51.00 75.00 Mkfunicipal Infrastructure Rehabilitation Project November 8, 1994 2004/2029 12.50 18.00 Institution Building Project July 5, 1994 2004/2029 7.30 10.10

Hungary Budapest Urban Transport Project June 15, 1995 2000/2010 n.a. 38.00

Kazakhstan Structural Adjustment Loan June 8, 1995 2001/2012 n.a. 180.00 Social Protection Project May 30, 1995 2001/2012 n.a. 41.10 Financial and Enterprises Development Project April 18, 1995 2001/2012 n.a. 62.00

Kyrgvz Republic Agricultural Privatization and Enterprise Adjustment Credit June 28, 1995 2005/2030 28.60 45.00 Private Enterprise Support Project May 4, 1995 2005/2030 10.10 15.00 Social Safety Net Project July 5, 1994 2004/2029 12.00 17.00

Latvia Jelgava District Heating Rehabilitation Project Mlay 23, 1995 2000/2012 n.a. 14.00 Liepaja Environment Project December 6, 1994 2000/2012 n.a. 4.00 Enterprise and Financial Sector Restructuring Project September 20, 1994 2000/2011 n. a. 20.00 Enterprise and Financial Sector Restructuring Project September 20, 1994 2000/2011 n.a. 10.00 Eniterprise and Financial Sector Restructuring Project September 20, 1994 2000/2011 n.a. 5.00

Kazakhstan Social Protectioni Project conitains a iety of xways:It suipports rehabilitation or significant healthi componienit. maintenance of infrastruticttire that is comple- Infrastructutre and the environment. In many mentary to private sector growth; through countries of the re-ion, infrastrtictuL-e inxest- sector work, it is assistirng covernments in ments have fallen to dangerOuslylow levels prioritizin)g puLblicinxestment, particularly in The Banik is addressing the problem in a var- the Baltic countriesand in Russia: and it is

84 THl WORI\ ) BANK ANNI XL Ri i-r I 100' Principalamount (millions)

Country/project name Date of Approval Maturities SDR US$ Lithuania Enterprise and Financial Sector Assistance Project April 13, 1995 2005/2005 n.a. 17.50 Enterprise and Financial Sector Assistance Project April 13, 1995 2005/2015 n.a. 4.50 Enterprise and Financial Sector Assistance Project April 13, 1995 2005/2005 n.a. 3.00 Klaipeda Environment Project December 8, 1994 2000/2015 n.a. 7.00 Miacedonia,former Yugoslav Republic of Social Reform and Technical Assistance Project May 16, 1995 2000/2030 9.00 14.00 Financial and Enterprise Sector Adjustment Credit May 16, 1995 2005/2030 54.70 85.00 Transit Facilitation Project April 18, 1995 2000/2015 n.a. 24.00 Moldova Pre-Export Guarantee Facility March 9, 1995 2005/2015 n.a. 30.00 Structural Adjustment Project December 8, 1994 2000/2005 n.a. 60.00 Poland Katowice Heat Supply and Conservation Project November 17, 1994 2000/2011 n.a. 45.00 Debt and Debt Service Reduction Loan and Related Measures to Support the Debt Reduction Program October 25, 1994 2000/2012 n.a. 170.00 Romania Employment and Social Protection Project March 7, 1995 2000/2015 n.a. 55.40

Russian Federation Second Rehabilitation Loan June 6, 1995 2000/2012 n.a. 600.0(1 Urban Transport Project May 16, 1995 2000/2012 n.a. 329.00 Gas Distribution Reconstruction and Energy Efficiency Project Mav 2, 1995 2000/2012 n.a. 106.50 Emergency Oil Spill Recovery and Mitigation Project April 25, 1995 2000/2012 n.a. 99.00 Tax Administration Modernization Project March 9, 1995 2000/2012 n.a. 16.80 Housing Project March 7, 1995 2000/2012 n.a. 400.00 Portfolio Development Project February 16, 1995 2000/2012 nia. 40.00 Management and Financial Training Project December 15, 1994 2000/2011 n.a. 40.00 Environmental Management Project November 8, 1994 2000/2011 n.a. 110.00

Turkey Antalya Water Supply and Sanitation Project May 25, 1995 2000/2012 n.a. 100.00 Second Health Project September 22, 1994 2000/2011 n.a. 150.00

Turkmenistan Institution Building/Technical Assistance Project September 15,1994 2000/2014 n.a. 25.00

Ukraine Seed Development Project May 23, 1995 2001/2012 n.a. 32.00 Hydropower Rehabilitation and System Control Project April 11, 1995 2000/2012 n.a. 114.00 Rehabilitation Loan December22, 1994 2000/2012 n.a. 500.00

Uzbekistan Cotton Sub-sector Improvement Project Mar 25, 1995 2000/2015 n.a. 66.00 Rehabilitation Loan March 28, 1995 2000/2015 n.a. 160.00

365.40 4,498.80 n.a. = not applicable (IBRD loan). NoTE: Details may not add to totals because of rounding actively exploring possibilities of attracting for- infrastiuctur-e projects. Highlway projects were eign direct investment for infr-astructure approved for Croatia and the former YugoslaV projects through its newly mainstreamed pro- ReCpublic of Macedonia-crucial for themil to gram of guarantee instrutments, keep their trade links with the rest of Europe. Almost a third of the projects approved dur- A $4(j( nmillion housinig project in Russia is sup- ing the past year provided financing fo r key porting a liberalization of urban land markets

Sin'. FOInR' I R,e'1 \NI CclR\I.Asr*\ 83 BOX 4-4. EMERGENCY RESPONSE: DEALING WITH THE OIL SPILL IN KOMI

In 1994, one of the world's largestoil spills took Russian government,will continuethe clean-upin place in the Komi Republic in northernRussia as a an environmentallyappropriate way. It will also result of failures from the regionalKharyaga- Usinsk minimize, to the extent possible,given the difficult pipeline,about 1,000 milesnortheast of Moscow, site conditions,damage to the affectedareas; provide near theArctic circle. assistanceto affectedpeople in coordinationwith a The authoritiesconstructed temporary dams local nongovernmentalorganization; support safe and dikes to contain the spill in the autumn, but pipelineoperations in the near term and evaluate the these measures were not fully effective.More than need in the future for a replacementpipeline-invest- 730,000 barrelsof oil-triple the amount released ment project;and identify and implementother mea- during the Exxon Valdez oil spill-were estimated sures to mitigate againstfuture oil spills. to be trappedin the frozen bogsand creek beds. In addition to $99 millionin IBRD funds, the Assistance was urgentlyrequested from the Bank projectis beingfinanced by the EuropeanBank for in late January 1995 to mitigate the problem after Reconstructionand Development($25 million) and the Russian governmentand the pipelineoperator thepipeline operator($16 million). Canada and the were unable to mobilize the needed resources.The United States financed the provision of key consult- timing was crucial:To preventfurther contamination ant servicesto supportproject preparation. of the downstream rivers (the Kolva, Usa, and Given the time constraintsand the complexityof Pechora)and the Barentssea, the constructionof the operation,there is a high risk that the project new containmentstructures and the reinforcement will not completelyprevent substantial environmen- of existingstructures had to beginwell beforethe tal damage.However, partial successis better than spring thaw, which usually starts in early May. The inaction, as even limited clean-up and containment Bank agreedto preparean emergencyloan-if the far outweigh the negativeconsequences-the whole- governmentimmediately financed containmentand sale releaseof the oil into the river systems-which clean-upactivities by an internationalcontractor would have occuredif actions had been delayedun- and Russian subcontractorsuntil Bank funds were til the followingwinter. As of the end of June 1995, available. the containmentstructures had been successfully In addition to financing containmentinfrastruc- strengthened,and therehad been virtually no release ture, the $140 millionproject, approvedthree of oil into the rivers. months after the originalrequest was made by the

and the auctioning of public land, as well as the $110 million Environmental Management providing credit for private land developers. Project, for instance, is strengthening environ- M,unlicipal infrastructure funds, including those mental policy, improving hazardous waste and for water projects, were approved for water-quality management, and promoting Azerbaijan, Georgia, and Turkey, in addition to pollution-abatement projects. Since many urban transport projects for HuLngaryand Rus- resource-recovery and industrial pollution- sia. To facilitate energy conservation and the ad- abatement projects require small investments justment to higher energy prices, the Bank sup- and have short payback periods, a new funding ported both district heating investnients-i-in mechanism has been created specifically for this Latvia and Poland-and power-improvement operation. It uses funds from the Bank and projects-in Albania, Armenia, and Ulkraine. other donors, together with those from local Projects supporting key agricultural infrastrLuc- sources, to lend to enterprises to finance ture, particularly irrigation, were approved for projects suclh as copper recovery from dust and Albania, Armenia, Ukraine, and Uzbekistan. waste tailings, as well as hydrocarboni-vapor and The Bank continued to provide leader-slhip in oil recovery. investing in environmental improvements and Another area of environmental focus is coor- in promoting regional environmental programs. dinated investimienitsto protect water resouL-ces. The Bank's first environmental loan to Russia,

86 Tilr XV 'oi.!:) B.ANS ANNI [ \1 R!:lPRT I 005 Projects were approved in Estonia, Latvia, and during fiscal 1995. On June 3(0, 187 projects Lithuania to protect their shared Baltic coast. were utider supervisioni as comiipared with 1 50 The three projects are designed to reduce the on the same day in 1994. To deal with the discharge of partially treated, as well as uin- groving portfolio, an intensified dialo-ue is be- treated, wastewater to the Baltic sea; restore ing maintainied with member-counitry govern- water quality near recreational beaches; im- menits on impltementationi issues. Yearly or bien- prove water suLpplyand sanitation services; and nial in-country portfolio reviews with most promote environmentally sustainable manage- member governments are now organized to ment and the development of the shared coastal identify country-specific implemnentation issues zone and protected areas. The Bank is also play- and( to agree on measures to deal with them. ing a key role in regional initiatives involvinig Reviews were held in Albania, Bulgaria, Russia, two other seas. The Black Sea Environmental and Turkey and are planniiedfor early fiscal 1996 Programme has developed an "urgent invest- in Kazakhstan, Kvrgyz Republic, Poland, and ment portfolio" for Bulgaria, Georgia, Russia, Russia. and Ukraine. The Bank approved its first loan ik strategy to give the Bank's resident mis- under the program when it approved financing sions a prominienit role in the routine supervi- for two wastewater-treatment facilities in the sion of projects is being put in place to take ad- G,eorgian coastal cities of Batumi and Poti. In vantage of their better knowvledge of local Central Asia, the Bank is working with the five conditions. In Russia, a permanent working countries of the Aral sea basin-Kazakhstan, group, comprisinig government officials and resi- Kyrgyz Republic, Tajikistan, Turkmenistan, and dent mission stalf, has been set up to coordinate tjzbekistan-to advance the first phase imple- Bank work, including project supervision, to en- mentation of a nineteeni-project program that sure that implenmentation proceeds without de- balances envir-onmenital, economic, and social lays. The fLunctiolnsol'the Budapest Regional objectives. In fiscal 1995, the Bank also coIll- Office were also redefined to give it regional pleted the Strategic Actioni Plan aimede at im- responsibility for supervising human-resources proving the quality and availability of water in projects. the Danube basin and at reducing the negative impact of humnan activities on1its ecosystem, as well as on1that of the Black sea. The Bank also responded to an environmental emergency durling the year-the oil pipeline spill in Russia's Komi Republic, vwlhichthreatens the marinie systems of the Kolva river and be- vond into the Usa and Pechora rivers-by approving a $99 million emergenicy project to miitigate the spill's effects (see Box 4-4). Governmenits conitinlued to be assisted in developinig national environmental action plans (NEAL's) and environmental strategies; durinigthe past year, the gomernments of Kyrgyz Republic and Moldova became the eleventlh and tw,elfth in the region to request Bank assistance in preparing a NEAI' or an environmental strategy. The 13ankremains ready to support other counitries in the region that wish to uLndertake such activities. Portfolio management. The numnber-of operations under supervision continued to inc-rease

Sijt FriN F)IR Et R('L AND C 1TR\ i Ai \ 87 LATIN AMERICA AND THE CARIBBEAN

As measured by standard importance of strengthenin.g economiiic variables. L.onger- indicators, calenidar 1994 was the fiscal accounts in the ear-ly term direct investment funds, lar-elv a good vear for the stages of reformi programs. how%eve\r, are less volatile and l.atin Ame rica and the Carib- The crisis also heighteniedthe do riot rcspond in the sanie beanl(I.Ar) regioll. importance of policies that way to possibly ephemeral The rate of growth of re- will geinerate an increase in short-termii specul1ative fiactors. gional gross domestic product domestic savings. Among such Encouraging long-term invest- (cat)P)increased, reaching its policies, the development of a ment-as Argentina and Chile highest level in years (4.2 per- sound financial sector remains have done-has been a stic- cenlt), an1dper capita income a goal that many countries in cess. Increasing the share of gained back ground lost in the the region have yet to realize. long-term investment funds is 1980s; inflation conitinued The Mexican crisis offers- not easy, however. to fall (most dramatically in or more accurately, reaffirms- * Significant care is needed Brazil); poverty declined seven fundamental lessons for in managing stabilization pro- slightly in some of the larger the countries of the [lAC region grams based on fixed nominal countries; the prospects for and for other nations embarked exchanige rates. Although suLch accelerating hemispheric inte- on adjustment and reform programs can he effective in gration received a boost at the programs: reducing inflation, experience Miami Summit of the Ameri- * In view of the dangers has also shown that they tend cas;the electoral process re- posed by a decline in savings to generate real exchange-rate sulted in smooth transitions of during the reform process, re- appreciation arid a resulting government in many coun- formers should move very fast decline in external competi- tries; and Haiti returned to the to create an environment that tiveness. This is particularly international fold. encourages savings. During true in countries in which At the same time, however, recent years, savings-rate de- contracts and other compo- points of vulnerability lay be- clines have been compounded nents of production costs are low this progress in the shape by two factors. First, far-reach- subject to some inertia. This of low domestic savings rates, ing reforms have opened more tendency can be offset by higlh ctL-rent accoutrt deficits, investment opportunities than rapid prodtictivity increases and sonictimes precarious fis- domestic savings can finance. and by the iniplenientation of cal balanices.What had been a Second, in some cases, the ini- reforins ainmedat reducing do- positiv'e yeal- ttLrinedmore tial stages of reform have been mestic distortions. Countries somnber when the Mexican accompanied by declining do- that rely on fixed exchange peso began its collapse on mestic savings. Both these fac- rates should implement fiscal December 20. tors have led to an increasing and monetary frameworks that The crisis unfolded by the reliance by the region on vol- allow them to react proniptly devaluation of Mexico's peso untary foreign savings and an to signs of external disequi- uncovered the remaining high increase in current account librium. vulnerability of many coun- deficits. * Productivity gains are a tries to external shocks. The * The composition of capi- fundamentally inmportant de- crisis also reinforced the im- tal flows-portfolio versus terminant of the way the over- portance of some key policies. longer-term direct investment all external sector develops. First, it hit very hard many of funds -is extremely impor- Productivity growth is at the the countries that, at the time, tant. Short-term flows are heart of export expansion and, had relatively wveakfiscal posi- very sensitive to short-terni thus, contributes to keeping tions, thereby heightening the chalnges in interest rates arid the current account in bal- other political and macro-

88 THE WORI.D BANK ANN: ;AiRlPORT 1 995 ance. Countries that experience productivity systems, a ndLthe mooderinization1of the judiciarv gains early on in their reformi andcadiustmenit system. Thtse reforms, in turn, have an impact programs-hefore real exchange-rate apprecia- Ol produd-tivitV. tion takes place-will generallv he in a hetter To furthler increase producti)ity, the lzank is position to hanidle external disturbances, supportinig the modternizationi reforms under- * A healths hailkii1g system is particularly taken by a large numher- of countries. The important in open economies subject to exter- Bank is also supporting a secondi generation nal shocks. Banks should he able to withstand of reforms affecting fiscal federal relations and chancges in finanicial conditions, including tem- markets and provincial finances-in Argentina porarv iiicreases in interest rates and changes in for exanmple-that will further improve the flow of foreiml ftunds.If this is nlot the case, produ ctivity. the bankinm' system can become the Achilles The Bank's work i1 hielpinigstrengthen tile Ji- heel of the econonoy. This means that a moderin nancial nid batnking sectors o-fmemlber countries reg'ulatory and supervisory system should be de- takes a two-pronged approach: On the one veloped early on in the reform process. hand, policy dialogute and economiic and sector * lmproving_ incorne distribution and reduc- wvorkhave continuously emphasized the need ing poverty cannot be left to the trickle-down to implement moderin prudenitial regulations; effects of economiiic growth. Governmnenit poli- on1the other haid, a number of oper-ationis have cies-in particular, fiscal programs and the ways focused on the restructurinig of the bankinig sec- in which tax adminiistrationis are run-arid pro- tor. Mexir o s Financial Sector Restructuring grams are critical. As Mexico is discovering, sta- Program and the Pro\ incial Ban;k Privatization bilization programs have a better chance of SUC- Loan in Arg-ntitna are produats of an effective ceeding it social stability cani be secured with dialogue that enabled the two coultries, with the help of essential safety nets. assistanCe fromiithe Bank and others, to * In redefining the role of the state, it is im- strenIgthern thcir financial sector management portant not to fotrget that a stron.g state is a pre- and contain the crisis in coinfidence of private requisite for a robust econiomiy. The state should investors. In the case of Mexico, tht need to as- draw its strength not through ownership ol assist finanicial sector reforms had beeni antici- sets, management of ptublic institutionis, andl pated even befor-e the peso crisis N'viththe ap- the conduct of commerce, but tlhrougih building proval in lanuary I 995 of the Financial Sector powerful institutionis that promote comripeti- Technicl-] Assistance Project. tioi, protect the consumner, and1provide the The Bank's activities, fiscal 1995. The i,:\( framewvork within wvhichi the responise of all re,ionn s short- and mediumn-term development econiomiiic agents can be predictedl with reason- agenda poses ma jor- challenges to the Bank in able accuracy. how best to apply its limited resourcts in smIp-

In suipport of tire ol)jectii'e of increasing saoi gs, of su(itablv to-usedl ountry-assistance(ort pro- the Bank is steppingt up its involvement in grlms. The Nlexican peso r-risis underliined the savings-enhancing initiatives. In particular, it volatility of private capital tlows to the region conitiniues to Nork with meniber counltries in and requir-ed the Bank to foctis on fostering reforninig and strengthening the financial sector macroeconomic stability as a prerequisite for and capital markets and in devising related sustained arid equtitable growth. pension-system reforri.s There is strong cross- WVhile the Baiik continues to en courage couL1try evidence suggesting that thesc refornis hi,iher dlomestic- savings, the uncertainity of pri- vill increase domestic savings, helping to vate capital flowvs reinforcekd the demand for achieve manageable currenit accoiunt positions. long-term ofrficial tinance. The immiledliate im- To enconrage instmelent and long-term caipitail pact of the peso crisis on the Bank's programs inflovs, the Bank is supporting policy reforlmns- inclutded demand for c-uciidl techinical assistance inCluding the de'signl of regulators framneworks, arld signitficant amouLnts of finiancial assistance privatization, the strengthellillg of sLrervFisOrs to support essential social programs to CuShiOn

Si ( I IN F,0' R L\ri\l AND TI IF. C \RIhFrAN SC) higher than in the previous year, with large in- a_ creasesoccurring in Argentina,Chile, Ecuador, and Peru. Net disbursements and transfers remained negative, however, for the region as

"'f - 0 %- a Nwholeand for most of the region's major d ] t:-X; h~~~~~~~~~~~~~~~~orr-owers. Many of the smaller countries of the region continue to seek Bank assistance to adjust and / _ ; /72fw : X nmoder-nize their econiomies in the face of market and trade-relationship changes. During the year, for example, Ecuador re- /?iJ ; ffilceivedassistance throughi a structural adjustment loan, two related technical assistance

-iE - :-. _loansto improve its fiscal and public sector management, and funds to support the implementation of a debt agreement with its com- i _j_ nmercial creditors. Bolivia received support to m-odernlize its public sector m-aniagemenit through a project to reform the judiciarv svs- tern. And, together with the help of others, the Bank r esponded quickly to the special needs of Haiti through an Emergency Economic Recov-

- c~~~~~~rvCredit and ani operation fborhighwav miain- tenan.ce and rehabilitation. To hring greater co- Ehesioniamono donor agencies, the Bank has increased its coordinationx with bilateral and v#'' ,Si! t . ' 511, ' 5 j multilateral donors involved in the region's de- XA velopm-enit. Conisultative group and aid-coordi-

-s | r 'nationmeetings were chaired by the Bank for Vshib. Bolivia, GLuatemala, and Haiti, andl another, for 4* F 1 El Salvador, was cochaired with the Inter- Amilericanl Developmenlt Banik (IDS). As a further step towards sharing more aid-coordinationi activities in the region, the Bank participated in a the impact of adjustment. (Specifically, in the consultative group meeting for Nicaragua case of Mexico, the crisis modified the Bank's chaired by the IDB at the Bank's Paris office. It operational strategy; some projects with me- also participated in meetings of the Steering dium-term goals were postponed to provide Commliittee of the Consultative Group for Co- space in the pipeline for newly emerging opera- operation in Economic Development (CCFi)),at tions.) In the medium term, a continued strongo which work programs were designed and cur- demand for external capital for investmiient renit development issues were reviewed. More in human resources and infrastructure is generally, work program and cofiniancinig ar- anticipated. rangements were strengthened with the IDB, and As a consequence, the Bank's financial com- overlapping activities were reduced, allowing mitments to the countries of the region-S6.1 the Bank to be more selective in its country- billion in fiscal year 1i95-were significanitly assistance strategies. Close cooperation contin- greater than had been planned. Gross disburse- ued with the Caribbean Development Bank, ments of $4 2 billion were also significantly with the two institutions jointly organizing an

90 THE W)Ri L)BANK ANN[ AI RiTORT 1'95 Export Development seminar, which led to the the Bank's advice or who wanit to learn of expe- identification of investment needs in member rience in other countries. More formal reports countries. (also reviewed by clienit governments) are de- An important aspect of the Bank's involve- signed to inform the Bank's executive board ment with its clients, and witlh the larger devel- (and consultative group members) of country opment community, is its program of economic performance in areas such as medium-term and sector analysis. Such work takes a variety growth strategies and prospects, poverty reduc- of forms. tion, and private sector development. During Informal policy analysis is frequently under- the past year, the regional ,ice presidency con- taken at the request of governments x\ho want ducted a thorough overhaul, designied to lower-

TABLE 4-13. LENDING TO BORROWERS IN LATIN AMERICA AND THE CARIBBEAN, BY SECTOR, 1986-95 (millionsof us dollars;fiscal years)

Annual average, Sector 1986-90 1991 1992 1993 1994 1995

Agriculture 1,114.5 941.5 1,569.6 390.0 446.9 515.7 Energy Oil and gas 65.9 260.0 110.1 44.9 - 11.0 Power 659.9 - 11.0 372.0 - 161.5 Environment - - - 16.3 418.0 28.6 Human resources Education 64.6 595.3 786.1 588.7 1,083.3 747.1 Population, health, and nutrition 140.6 337.3 47.5 374.0 331.0 94.6 Social sector 5.6 - - - 130.0 500.0 Industry and finance Industry 240.1 - - - - - Financial 1,037.9 844.5 877.0 125.0 604.5 1,409.5 Infrastructure and urban development Telecommunications 13.4 - - - - - Transportation 490.8 218.0 564.2 1,697.5 595.0 371.0 Urban development 390.6 260.0 490.0 170.0 402.0 575.0 Water supply and sewerage 157.3 485.0 250.0 439.0 521.5 221.5 Mining and other extractive 11.4 200.0 - 250.0 14.0 - Multisector 817.3 422.3 593.8 1,318.1 62.2 328.6 Public sector management 188.9 672.8 362.2 383.0 118.3 1,096.4 Tourism - - - - 20.0 -

Total 5,398.8 5,236.7 5,661.5 6,168.5 4,746.7 6,060.5

Of which: IBRD 5,255.6 5,067.2 5,256.5 5,851.8 4,434.5 5,715.3 IDA 143.2 169.5 405.0 316.7 312.2 345.2

Number of operations 44 44 45 50 48 52

NOTE: Details may not add to totals because of rounding. -Zero.

S1 ( TI N Fk IR L\TIN ANIERIR \ A\NL)I H- CARIBBvEAN 91 costs, increase responsiveness, anicl improve dis- the Bank continiued its progr-am of poverty semination, of its economic andc sector work analysis, wvhiiclhis increasingly moving fromil program. It also began to integrate more fully mapping, poverty to a more detailed examina- its analytic wvork within the context of overall tion of the liniks between poverty and national couintry-assistance strategies, while stressing cer- aind sector-al policies. tain regional themelts snLchas trade integration, In the Caribbean, the Bank is increasinigly mobilization of domestic savings, and the miod- taking a regional approachi to economic and see- ernizationi of state functiois. tor work. A series of papers oni Europeani policy The diversity of topics anLd formats of eco- towvard Carribhan hananas wvas produced, as nomiiicanid sector analysis can be illuistrated wvith well as reports-dealing with econiomic policies a few examples. in the Organization of Eastern Caribbean In response to the accelerated policv dialoguLe States, environmenital issues, and private sector that surfaclaed folloxving the election of Brazil's developmenit-for the cc;lcrn. Further regional President Carcloso, a countr-y cconiomic memo- reports-on the public sector, poverty issues, randurm revieved the governmeit's stabilization and export services--are uLnicer way in prepara- program and highlighted structural reform polii- tion for the 19.96 (G( r-:n meeting. cies that would be neecled to consolidate the In accordance with its decision to be more se- program's initial sutccess. In adiclitioni, a series of lective in its activities in the region, the human- notes ifor the incoming gcoverinmenitoutlilnedL is- resotirces andc infrastruictiu-e sectors hiavc be en sues and recommencled priority policy actiolns identified as priorities for support. Support for Siimilarly, a scries of polic notes was provided infrastructure is based on a report completed by to Mexican a)uthoritites to help them addtlress the Banlk that highlioihts the neglect of infra- various policy issues. A poverty assessment, struLCturein Latin American coounitr-iesand the conducted joinitly wviththe Colombian govern- need for new investments-estimated at $60 ment, w as concluded, with the main effort billion annually-to stiniulate growth, and de- at local dissemination being unldertaken by lineates the roles that should be plaectl by the Colombian atithorities. In Honduras, the BaLik p,ublic aned private sectors. It is expected that undertookl a comprehensive public expenditure humnIl-resources ancl intf-astructure operations review in collaboration w,ith the ils. Overall, will account for about 25 percent and 45 per-

TABLE 4-14. WORLD BANK COMMITMENTS, DISBURSEMENTS, AND NET 'T'RANSFERS IN LATIN AMERICA AND THE CARIBBEAN, 1990-95

(millions of us dollars; fiscal years)

Brazil Mexico Argentina Total region start start start start Item 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 Undisbursed commitments 5,363 4,246 1,806 17,761 Commitments 552 5,829 2,387 11,050 1,425 5,046 6,061 33,839 Gross disbursements 881 4,280 1,113 9,776 831 3,620 4,182 26,489 Repayments 1,385 7,524 1,223 5,811 285 1,976 4,450 24,164 Net disbursements -504 -3,244 -110 3,965 547 1,644 -268 2,325 Interest and charges 515 3,692 959 5,116 291 1,380 2,703 16,414 Net transfer -1,019 -6.936 -1.069 -1,151 256 264 -2,971 -14,089

NOTE: Disbursements frotn the inA Special Fund are included. The countries shown in thie table are those wvith the largest amounts of public or publicly guaranteed long-term debt. Details may not add to totals because of rounding

C2 TH;. WoeR i L B\ Ni, A er R i j1f. ! cent, respectively, of total lending for the next Environment F -ility tn manage the disposal three years. Ruoralpoverty alleviation -will also of waste materials ftrom ships to protect the contilnue to be a major focus in selected couni- mar-inieenvironment. tries or in regional programs withlini counltries. Portfolio management and dissemination of Several of the Bank's fiscal 1)95 humand-rein!fbrmnation.At the beginning of the fiscal vear sources operations were designed in responise to 326 projects in twventy-ninlecouLitries, with the challenige posed by the low; quality ofcclu- comimiitinenits of S31 .8 billion (of wlhichlahout cation in the region. The problem of low quality half was undisbursed), vere under implemenita- is most serious in hasic education, with interina- tion. Brazil and Mexico together accouLited for tional comparator-s showinig that public schiool one third of the total numilber of projects and achievemilenlt in the I AC region to he far lower for mor-ethani half of total comimillitimenits. than in East Asian counitries, for example. The Projects in the agriculture and transport sectors Techniical Education and Training Moderniza- wvere the most numerous. Projects in the education Project in Mexico features the introduction tion, health, public sector managemient, and of trade-certification standards, while the Pro- transportation sectors have all increased as a gram of Essential Social Services, also in percentage of the portfolio, rellectinig shifts in Mlexico, provides a safety net to maintain key Itnding strategies in recelit years. services to cushion the impact of the significa.nt As a follow-up to the 1(992 report of the adiustment that vas madic in public expendi- Bank's Task Force on Portfolio Manageiienit, the tures in the wvake of the peso crisis. And the region has developed an integr-ated approach to Education Reform Project in Bolivia is support- managing its portfolio. This includes not only ing the first phase of' a long-term reform process steps to improve project quality at entry, but whose sustainiability will depenid on continued full or partial cancellation of slow-disbursing firm commitment and strong leadership ftrm projects. Steps to improve project qualitv at en- the goxerimeint over several administrationis try range from promoting social assessments and with respect to both institutionial and financial participationi in project design and implemenita- policy measures, as wvellas sustainied support tioi, through simplifving the policy objectives from the interinationial community. The project associated with projects by linking investmenits is receiving support from the im, Germany, the to early resolutioni of a few essential policy Netherlands, and Sweden, as wvellas ftromnthe actions, to parallcl dialooOueand assistanice for Bank. broader and longer-term policy cianige. Capac- Because the l[At regiOInwill requir-e huge an- ity-building programilsfor indigenous people, nual investimienitsto rehabilitate and expanid its designed to help them identify their needs and phiysical infrastructure, the Bank is identifyinig development priorities, have been pioneered, ways to support prixate sector investment in uSiingproceeds from the Institutional E)evelop- prior-ity infrastructure. The Lima WVaterReha- menit Fund. These training programils have bilitation and Management Project is a good tx- been launichied in Bolivia, Chile, Colombia, ample of the role that the Bank can play in the Costa Rica, Ecuador, Guatemala, Mexico, and privatization of infrastruCture funictions. The Nicaragua. Bank, as part of its efforts to mainstream envi- Resources devoted to implementationi conitin- ronmental management, has also integrated en- ued to rise. Developing borrower capacity to vironmenital requirements into the design of in- implement Bank-financed proiects has been frastructure projects. An innovative example of supported by an increase in the number of staff integration in the fiscal 1995 portfolio of and consultanits based in field offices. Traininii projects was the Solid Waste Management semninars for borrower staff on procurement-a Project that benefits the four memibherstates of chroniic bottleneck to time ly project implemen- the Organization of Eastern Caribbean States- tation-xvere held in eight couLitries; more than Dominica, St. Kitts and Nevis, St. Lucia, and I S() officials in each of the past two fiscal years St. Vincent and the Grenadines. The project in- have attended the seminars. The Banik gave coni- cludes a comiiponient finanlced by the Global siderable attenition to dissemninating the lessons

Si ( I (xN F, HI L AI IN AxiFRIk A ANIPT}Il CARIf.l 93 TABLE 4-15. PROJECTS APPROVED DURING FISCAL YEAR 1995, LATIN AMERICA AND THE CARIBBEAN Principalamount (millions)

Country/projectname Date of Approval Maturities SDR US$ Argentina Second Provincial Development Project May 4, 1995 2000/2010 n.a. 225.00 Provincial Bank Privatization Loan May 4, 1995 2001/2010 n.a. 500.00 Second Municipal Development Project March 23, 1995 2000/2010 n.a. 210.00 Provincial Reform Loan January 24, 1995 2000/2010 n.a. 300.00 Decentralization and Improvement of Secondary Education Project September 15, 1994 2000/2009 n.a. 190.00 Belize Second Power Development Project July 5,1994 2000/2011 n.a. 11.50 Brazil Recife Metropolitan Transport Decentralization Project June 29, 1995 2001/2010 n.a. 102.00 Belo Horizonte Metropolitan Transport Decentralization Project June 29, 1995 2001/2010 n.a. 99.00 Rural Poverty Alleviation Project - Bahia June 29, 1995 2001/2010 n.a. 105.00 Rural Poverty Alleviation Project - Ceara June 29, 1995 2001/2010 n.a. 70.00 Rural Poverty Alleviation Project - Sergipe June 29, 1995 2001/2010 n.a. 36.00 Urban Development and Water Resource Management Project September 6, 1994 2000/2009 n.a. 140.00 Bolivia Judicial Reform Project April 13, 1995 2005/2035 7.60 11.00 Structural Adjustment Credit (supplement) December 8, 1994 2001/2031 6.10 8.60 Education Reform Project August 5, 1994 2004/2034 28.80 40.00 Regulatory Reform and Capitalization Technical v Assistance Project July 26, 1994 2004/2034 10.50 14.70 National Land Administration Project June 13, 1995 2005/2035 13.70 20.40 Chile Secondary Education Quality Improvement Project May 9, 1995 2001/2010 n.a. 35.00 Third Road Sector Project December 22, 1994 2000/2010 n.a. 120.00 Colombia AgriculturalTechnology Development Project April 20, 1995 1999/2012 n.a. 51.00 Energy Sector Technical Assistance Project December 15, 1994 1999/2012 n.a. 11.00 Dominica Solid Waste Management, May 4, 1995 2001/2012 n.a. 0.60 Solid Waste Management, May 4, 1995 2005/2030 0.50 0.60 Dominican Republic Irrigated Land and Watershed Management Project May 2, 1995 2000/2015 n.a. 28.00 Ecuador Modernization of the State Technical Assistance Project December 13, 1994 2000/2015 n.a. 20.00 Public Enterprise Reform Technical Assistance Project December 13, 1994 2000/2015 n.a. 12.00 Debt and Debt Service Reduction Loan December 13, 1994 2000/2015 n.a. 80.00 Structural Adjustment Loan December 13, 1994 2000/2015 n.a. 200.00 Guatemala Integrated Financial Management Project May 30, 1995 2001/2015 n.a. 9.40 Guyana Private Sector DevelopmentAdjustment Credit June 20, 1995 2005/2035 10.00 15.50 Private Sector Development Adjustment Credit (supplement) June 20, 1995 2005/2035 2.00 3.10 Financial Sector and Business Environment Project December 15, 1994 2005/2034 2.40 3.50

94 THF WORI D BANK ANN 'Ai. RE()RT 1 095 Principalamount (millions)

Country/project name Date of Approval Maturities SDR US$ Haiti Road Maintenance and Rehabilitation Project March 23, 1995 2005/2035 34.60 50.00 Emergency Economic Recovery Credit December 20, 1994 2005/2034 26.80 40.00 Honduras Basic Education Project March 28, 1995 2005/2035 20.40 30.00 Environmental Development Project March 28, 1995 2005/2035 7.40 10.80 Agricultural Sector Adjustment Credit (supplement) December 8, 1994 2003/2033 18.60 26.30 Mexico Financial Sector Restructuring Program June 22, 1995 1999/2010 n.a. 1,000.00 Financial Sector Technical Assistance Project (supplement) June 22, 1995 2000/2010 n.a. 13.80 Program of Essential Social Services June 22, 1995 2000/2010 n.a. 500.00 Financial Sector Technical Assistance Project January 24, 1995 2000/2010 n.a. 23.60 Technical Education and Training Modernization Project October 27, 1994 2000/2010 n.a. 265.00 Second Decentralization and Regional Development Project September 13, 1994 2000/2009 n.a. 500.00 Rainfed Areas Development Project July 12, 1994 2000/2009 n.a. 85.00 Nicaragua Basic Education Project March 16, 1995 2005/2035 23.10 34.00 Institutional Development Project March 16, 1995 2005/2035 15.70 23.00 Economic Recovery Credit II (supplement) December 8, 1994 2004/2034 4.40 6.30 Panama Rural Health Project February 7, 1995 2000/2012 n.a. 25.00 Paraguay Asunci6n Sewerage Project February 14, 1995 2000/2011 n.a. 46.50 Private Sector Development Project July 5, 1994 1999/2011 n.a. 25.00 Private Sector Development Project July 5, 1994 1999/2011 n.a. 25.00 Peru Primary Education Quality Project December 15, 1994 2000/2012 n.a. 146.40 Electricity Privatization Adjustment Loan November 22, 1994 2000/2014 n.a. 150.00 Lima Water Rehabilitation and Management Project November 22, 1994 2000/2014 n.a. 150.00 St. Kitts and Nevis Solid Waste Management Project May 4, 1995 2001/2010 n.a. 2.13 St. Lucia Solid Waste Management Project, May 4, 1995 2001/2010 n.a. 2.28 Solid Waste Management Project, May 4, 1995 2005/2030 1.60 2.30 Basic Education Reform Project, January 24, 1995 2000/2009 n.a. 3.36 Basic Education Reform Project, January 24, 1995 2005/2029 2.30 3.36 St. Vincent and the Grenadines Solid Waste Management Project, May 4, 1995 2000/2012 n.a. 1.81 Solid Waste Management Project, May 4, 1995 2005/2030 1.30 1.80 Trinidad and Tobago Environmental Management Project March 30, 1995 1998/2010 n.a. 6.25 Water Sector Institutional Strengthening Project August 2, 1994 2000/2009 n.a. 25.00 Uruguay Health Sector Development Project March 21, 1995 2000/2010 n.a. 15.60 Venezuela INPARQUES(National Institute of Parks) Project June 13, 1995 2000/2010 n.a. 55.00 Agricultural Extension Project March 28, 1995 2000/2010 n.a. 39.00 Health Services Reform Project December 13, 1994 2000/2010 n.a. 54.00 237.80 6,060.49 n.a. = not applicable (IBRD loan). NOTE: Details may not add to totals because of rounding. a. "Blend" loan/credit.

SlE I'ICN F()I R L-ATIN AM1ERIi A ANP IHF CARIBBEAN 95 of its operations, the results of econiomiiicand region. Topics covered in the meeting included sector analvsis, and examples ot hest practice political economy, savings and growth, trade through seminars and workshops for officials and economic integration, income inequality from the region. Most were jointly sponsoredi and suLstainabledevelopment, education and with bilateral donors and internationial organiza- growth, and the impact of capital flows. tions. Of particular interest was a Health Sector Reform seminar that was held in San Jose, Costa Rica, in Fcbl-uary 1995, wvhich was attended by all the health ministers of Central American countries, as wel] as representatives from the Panl American Health Organization and other aid agencies. Finally, a major innovation during the past year Was the' convenlillgof the ilrstannual Bank- sponsored conferenice on development isstues (held in Rio de Janeiro in unlle 1 995 for policymakers and development practitioners frorin the public and private sectors), wvhich focused on kev developrmtent challenges facinig the

96 FHF \,V()I ivBANK ANNI [IA REINi I 1995 MIDDLE EAST AND NORTH AFRICA

Aggregate growth of gross over the past three decades, the proniged strategy that syntlhe- domestic product (GD1') in quality and availability of basic sized both expressed clielnt those economies of the hunmanservices still need sub- priorities-and how to Sup- Middle East and North Africa stantial improvement. Meani- port them-and couintry-assis- (MIENA) region in which the while, rapid poptilation growth tanice strategy discussionis in Bank is most active- was lust has meant that simply main- the Bank's executive board. under 4.2 percent in 1994-a taminiigservices has strained * First, growth must be sutbstantial improvement over available resources, rapid, so as to make up for the 2.25 percent achieved in The region has substalntial past lost ground and lay the 1993. As in previous years, assets, however, inclulding a foundations for long-term however, performance varied high degree of cultural iden- prosperity widely from country to coun- tity, a long tradition of trade * Second, growvth must be try. Yemen-beset by severe and entreprenleurslhip-fos- widely shared throughout na- macroeconomic difficulties tered in part by its advanta- tional populationis so as to and civil war-actually grew ueous location between broaden opportunities across more slowly than in 1993, Europe, Africa and westerni all segmenits of society and while growth in Morocco Asia-and a relatively well- make the most of the humnan reached 14 percent, dramnati- trainecl labor force. While ar- capital on which the resource- cally rising from drought-re- able land and fresh water are poor, poptilationi-rich coun1- lated stagnation in 1993. in increasinigly limited suppl\, tries of the region must de- Challenges and opportuni- several countries are richly en- pend for their development. ties. The MENAregion faces dowxed with oil. * Third, growth must be substantial development chal- A major obstacle to devel- environmentally sustainable, lenges. Slow overall GDP opmenit in the past has been bothi to address the existinig growth during the 1980s and the region's uncertaini political environimental problems fac- early 1990s, combined with situation, which has preoccu- ing the region and to ensure the region's high rate of popu- pied policymakers, diverted that future growth will not be lation growth (close to 3 per- domestic resources away from eroded by spiralling environ- cent a year), led to an actual grow-th-enhancing invest- mlenital penalties. decline in aggregate per capita ments, and deterred foreign In acldition, the Bank sug- income, Both poverty and un- private investors from partici- gested that growth prospects employment rates remain un- patioon in the econiomies of the would he enhlaniced by the de- acceptably high. About 65 Maghreb and the Mashreq. velopment of productive million people, or 25 percent The recent advances in the transnational partnerships, both of the region's population, are Middle East Peace Process anlong countries in the region living in poverty. Unemploy- present an opportunity for the and betxeen NIMNA countries ment averages about 20 per- countr-ics of thc region to use and external partniers. The de- cent, and youth unemplov- the reduction of tensions to v'elopment agenda for action by ment is often much higher (as frame and implement new MIENAcouintries is formidable. much as 50 percent in Algeria, strategies for restoring soundly The Bank's contribution to real- for example). Although the based prosperity for their izing it during the past fiscal countries of the region have peoples. year included a lending pro- traditionally invested heavily At the first Middle East anid gram of nearly $1 billion, which in education and health care, Northl Africa Economic Sutn- and despite great progress in mit, held in Casablanica at the quantitative expansion of end of October 1994, the ,lgeanon,Morocco, Tunisia, the West schools and health facilities Banik proposed a three- Bank and Gaza, and Yemen.

SIr II()N F(3111tMiDLRr. E.xsl AMN)NORTH AFRIC '- 7 was based on selective assistance in priority areas region. Rapid growth, in tuirn, will depend criti- indicated by the three-pronged strategy, to- cally on moving away from past public sector- gether with a substantial program of analytical oriented development strategies and adopting a aindladvisorv work directed at supportinig the 'new paradigm" for prosperit', hased on tin- policy frameworki necessar-y to ensuLrerapid, leashing the energies of the private sector as the shal-ed, and sustainable growth. engine of growth. But private sector develop- Promoting rapid growth. Promnotinigrapid inent is a complex task, involving a wide range growvth is the core recjLfirement for reducing- of policv actions, ranging from macroeconomic poverty and I raisinig li\'ing standards in the stabilization and reduction of conistraints on in-

TABLE 4-16. LENDING TO BORROWERS IN MIDDLE EAST AND NORTH AFRICA, BY SECTOR, 1986-95 (millions of us dollars;fiscal years)

Annual average, Sector 1986-90 1991 1992 1993 1994 1995

Agriculture 328.6 13.2 299.2 463.0 601.7 231.6 Energy Oil and gas 3.5 84.0 160.0 - 80.0 - Power 107.9 114.0 220.0 165.0 - - Environment - - - - 6.0 55.0 Human resources Education 119.0 241.4 75.0 115.2 33.0 158.3 Population, health, and nutrition 27.4 245.0 26.8 188.0 - 35.7 Social sector - - - - - Industry and finance Industry 28.7 365.0 - - - Financial 123.2 235.0 - - 120.0 - Infrastructure and urban development Telecommunications 32.2 - - 100.0 20.0 - Transportation 113.0 162.0 - 35.0 - 239.1 Urban development 48.0 250.0 110.0 684.0 - 51.0 Water supply and sewerage 111.1 - 57.0 - 270.0 58.0 Mining and other extractive 11.2 - - - - - Multisector 208.0 310.0 525.0 - - 150.0 Public sector management 35.8 - 9.0 - 19.9 - Tourism - - - 130.0 - -

Total 1,297.6 2,019.6 1,482.0 1,880.2 1,150.6 978.7

Of which: IBRD 1,245.8 1,784.0 1,324.0 1,756.4 1,050.6 925.4 IDA 51.8 235.6 158.0 123.8 100.0 53.3

Number of operations 20 20 17 19 16 14

NOTE:Details may not add to totals because of rounding. - Zero.

!19 1IR WOI I) BANI ANNI1\1 RrFiX Ri 105 ternationial trade and investmenit to rationaliza- tion of the role of the public sector in the econiomyso as to provide room for a dynamic private sector to develop and thrive. NlMostcountries in the regionihave already taken substantial steps toward macroeconomnic stabilization and trade and investment liberalization. Morocco and Tunisia have moved be- doindthis stage and into wide-rassgingrelmte T hs s A - designed to eihance the business climatefThese reforms are already paying off in terms of pri- t xvatesector development and increased foreign i S investment. Jordan, too, has been successful in implementing its reform programr. Lebanon has taken steps toward stabilization and has seen a revival of business confidence and investmeint over the past two years, wvhile , a

Egypt has put in place a number of measures .... : that underpin the second phase of its economic reform and structural adjustmelnt program. For Egypt, the stabilization program h3as been sSUC- N 1> cessful in achievinigits immediate goals; further 1' monetary and fiscal adjustment is required to consolidate the gains made. Algeria has taken X f important steps towards stabilization, but still must do more to reduce the role of the public sector The special difficulties facing Iraniand Yemen have meant that their progress has beeni more limited. Nevertheless, Iran is undertaking '- an econ(omicprogram that includes tariff reform and privatization. Bank support for private sector development .4 combiniesanalytical and advisory work with st- lective lendinigoperations to buttress it. Durinlg the past year, Bank staff prepared private sector assessmenits (P'SAS) for Lebanon and Jordan. Like wlhichiexciltabted priority needs fol-public ex- their predecessors for Egypt, Morocco, and penditurIeand vv3Vs to accormmlrodatethem, Tunisia, these analytical reports evaluate both while still redtucingthe overall wveightof the the potential for, and the constraints auainst, public sevtor in the ecoiiony so as to permit rapid private sector growth and propose policy further rapid pirivatesector growth. initiatives for consideration. I endiii- designed to help promote privatc Other substantial items of analytical and ad- sector clevelopmiienit (luring the year included visory wvorkduring, the year included a stud) of support for a project that is helping Algeria to export-growth determinanits and prospects in accelerate its tranisitionito a market economy. NMloroccoand Tunisia (a follow-up to the PSAS The Banik-supportedEconomic Rehabilitation for these two counitries);a report on financial Stipport Loan wvillencourage private sector policy for Lebanoni,which indicated major areas development (including the launclhingof a for financial sector reform to support stabiliza- privatization program), public expenditure re- tion, reconstruction, and private sector develop- form, and finanicialsector reform. A highways ment; and a Morocco Public Sector Review,

SF 1I()o Ft wR MI1DD[E EA' I AN) Nop1r HAFRk.A 99 loan to Algeria; a secondary, tertiary, and rural cial welfare study (for Egypt) and a poverty as- roads operation in Morocco; and projects in Ti- sessment (for Tunlisia).Tunlisia's stabilization nisia for rural roads and ruL-alfinance are also and reform program, based on economic growth expected to facilitate private sector develop- and consequenitialexpansioni of employment ment, incliudingcommercial activities of poor, opportunities, has already led to marked reduc- small-scale farmers. tions in poverty. As poverty becomes more lo- Supporting shared growth. Ensuring that the calized, tar-eted interventionisto redlice its inci- fruits of growth are widely shared depends criti- dence will become more important. This cally on creatinigmore and better private sector targeted approach is exemplified in an innova- jobs and incomes. But it also requires that stcps tive commullity-developmenit progr-am that is be taken to provide greater equality of opportu- currently ulider preparation by the governmeint nitv to all citizenis,including women. Here, ecdu- of Lebanon and the Banlk.Under the program, cation is the great equalizer. Good basic school- poor rural comimiilunLitieswill be helped to ing for all means that anyonie can enter the joh implemenit small-scale social infrastructur-e market with the chance to compete for new projects. The program is designed to be de- employment created by a dynamic privatc sec- mand-driven and to encourage grassroots and tor. Supporting widely shared growthialso private self-help initiatives. means that basic healthi care he available to all Finally, suppol-ti.nu wvidelyslha-ed gr-rowth in- citizens. Finally, special attentioni has to be paid volves paying special attention to enhancinigthe to the needs of the poor, not all of whose needs socioeconomic position of women. A Bank may be addressed by rapid growtthalone, document prepared for the InternationialCon- The Bank's long-standing partnershiips with ference on Population and Development in NIENAgovernimilents on1 programils to suppor-thu- Cairo4 emphasized not only the need to man-resources development have enabled it to improve family health care (including family continue to respond strongly and selectively to planning for those seeking it) but also the im- priority client needs. Lendinigduring the year perative of expanding opportullities for wvomen, included operations that build on existing couii- especially through more and better schoolinig try success stories, as in Jordan (where a $60 for girls. Education is a necessary but not a sutf- million aRiR[loan supported the second phase of ficient conditioni for empowerinig women in so- comprehensive general educationi reform dle- ciety, however; in this connection, the govern- signiedto enhance qualitv and furtier expaand rrelit of Morocco an(dthe Bank are currenitly access to basic schooling) and Tunlisia (where discussing a comprehensive strategy for better- the latest in a series of Bank-supported opera- integratinigwomeni in the development pro(ess tions will extencdthe government's ambitious as a whole. reform progranm from lower basic to upper basic Securing environmentally sustainable and secondary schooling). Bank operationishave growth. The counitriesof the region are already also assisted new clients facinigspecial needs- facing widespread environmental pollutioni, loss as in the West Bank and Gaza (wlhereboth edu- of arable land, and, above all, freshwater scar- cation and health services were supported by a city and degradation of its quality. The Bank $20 millionloan on 14A terimisft-om the Trust has continiued to support couLitries'efforts to Fund for Gaza) and L.ebanon(where the Health grapple with these problems, hoth throughI its Sector Rehabilitation Project will help strength- analytical and advisory work and through selec- en the capacity of the Ministr-yof Hlealth and tive lendinigfor priority needs. Durinigthe year, rehabilitate hospitals and primary health-care Bank staff worked with the (governmentof Iran centers, including centers operated hy non1gov- on an environmenitalstrategy study and with ernmental organizationis). Morocco and Tunisia on xvater-sectorreviews. Addressinigpoverty has remained at the forefront of country dialogue and Bank aLialytical - -. 4. Wewrl.Bonak. 110'4. "A P(:lnl;Itiull Pcrsplect\ e on work, which hias included preparation of a so- De\elopmient:TheMciddlle Fast and North Air a. Middle Ease aniLdNorth Atrica R:gi4innal()ttOc. Washilgtoll, D.C.

100 THr WonL)LBANK ANN\IAI RF')ii 1 919) Drawing on thie extensive work- undertaken on operative management of water resources across environmental issues conducted in close coop- nationial boundaries where appropriate, and in- eration with clients over more than a decade, vestigation of nonconventional supply sources the Bank also prepared both a comprehensive such as water imports and desaliniation. environmenital strategy and action program for Botlh the environmental and water-strategy the NIFNA region and a regionial water-strategy documenits have beenl well received in the re- paper. gion, and the proposals contained in them are The environmental strategy, launiched at the expected to be cenitral to the Bank's future December 1 994 i meeting of the ministers of the policy dialogue with member governments. League of Arab States concerned with the en vi- l.enldin during fiscal 1995 supported the ob- ronnient, estimates that environimcntal dlegrada- jectives of both the environmental and water tion is cturrenitly costing the region as muchi as 3 strategies. Thus both the Irrigation Im-prove- percent of regional Gr)P a year throtigh adverse ment Prolect in Egypt (assisted by a $26.7 mil- health effects and lost economic opportunities. lion 1HRDloan and a $53.3 million IDA credit) It proposes an urgent program of remedial ac- and a $80 millioni loan to support agricultural tion, based on1improved institutional arrange- sector adjustimient in lordan incLicled measures ments for dealing with environmental issues, to promote the efficiient use of agricultural wa- enhaanced incenitives for pollutioni redtuctioni and ter A $58 million loan to Tunisia for water sup- more efficienit use of resources, targeted invest- ply and sewerage will help improve demand inents to clear up the worst consequeLnces of management and cost recovery, and the Solid past polltttion and prevent its future escalation, Waste and Environmental Management Project and measures to improve enviroiinmenital aware- in Lebanon (assisted by a $55 million IFRD loan) ness among citizens and policymakers alike, will reduce solid and hazardous waste pollution The regionial water-strategy paper proposes a and support cost recovery for waste-disposal new approach to the increasingly severe water services. shortage in the region, involvinig pricing wvater Facilitating partnerships for development. to reflect economic costs, an emphasis on con- The concept of partnership is assuLminggrowing servation and water-saving technologies, na- importance in an increasingly interdependent tional manai,agemenitof vvater resources and co- global business and trading environment. The

TABLE 4-17. WORLD BANK COMMITMENTS, DISBURSEMENTS, AND NET TRANSFERS IN MIDDLE EAST AND NORTH AFRICA, 1990-95 (millions of us dollars;fiscal years)

Egypt Algeria Morocco Total region start start start start Item 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 1995 1995 1990-95 Undisbursed commitments 1,022 1,280 1,680 6,103 Commitments 80 1,370 331 1,815 58 2,452 979 8,902 Gross disbursements 130 898 440 1,793 232 2,125 1,245 7,166 Repayments 215 1,192 237 1,043 333 1,563 1,113 5,456 Net disbursements -84 -294 203 750 -102 562 132 1,710 Interest and charges 123 780 126 623 279 1,491 765 4,086 Net transfer -207 -1,074 77 127 -381 -929 -633 -2,376

NOTE: Disbursements from the IDA Special Fund are included. The countries shown in the table are those with the largest amounts of public or publicly guaranteed long-term debt. Details may not add to totals because of rounding

Si ( Tl)N\ Fk) R MILooi I E%ASTANI) NORTIi AFRICA 101 Bank stands ready to assist mnember countries of regional Council of Advisers and through its the region in assessing the feasibility of imple- sponsorship of the regional Economic Research menting common infrastructure projects in or- Forum. der to better allocate scarce available resources. Especially with the new emplhasis across the The Bank has traditionally helped to bring region on private sector-led development, the donors and developing member countries to- impetus is likely to grow for government- gether through its cofinancing and aid-coordina- private sector partnerships within countries and tion activities, including Bank-chaired consulta- for increased links betwveen government and tive grotups and special fora such as the Adl Hoc btisiness groups in NIENA and external partners, Liaison Committee for the West Bank and especially in Europe. Gaza, and through its role as cosponsor of, and During the past year, the Bank encouraged active participant in, bodies that link European the establishment of high-level governmenit- and NIENA countries such as the Mediterranean private sector links designed to accelerate pri- Environmenital Technical Assistance Pirogramii.It vate sector development in Morocco and Egypt. has played an active role in the Working Groups It also strenigthened its owni ties xvith the on Regional Economi-c Development, the Envi- League of Arab States, Arab multilateral and bi- ronment, and Water set up under the auspices lateral funds, and the European LUnion(EL), and of the Middle East Peace Process. It has also is discussinig with the EtI possible participation brought together experts from differenit couni- in the recently anniouLncedFt initiative for a tries within the region through meetings of its Euro-Mediterranean partnership-a large-scale,

TABLE 4-18. PROJECTS APPROVED DURING FISCAL YEAR 1995, MIDDLE EAST AND NORTH AFRICA Principalamount (millions)

Country/projectname Date of Approval Maturities SDR US$ Algeria Sixth Highway Project January 31, 1995 2000/2011 n.a. 130.00 Economic Rehabilitation Support Loan January 12, 1995 2000/2011 n.a. 150.00 Emergency Reconstruction Project December 1, 1994 2000/2011 n.a. 51.00 Egypt Irrigation Improvement Project' December 22, 1994 2000/2014 n.a. 26.70 Irrigation Improvement Projecta December 22, 1994 2005/2029 35.70 53.30 Jordan Second Human Resources Development Investment Project March 30, 1995 2000/2015 n.a. 60.00 Agriculture Sector Adjustment Operation December 8, 1994 2000/2015 n.a. 80.00 Agriculture Sector Technical Support Project December 8, 1994 2000/2015 n.a. 6.60 Lebanon Solid Waste Environmental Management Project June 6, 1995 2001/2012 n.a. 55.00 Health Sector Rehabilitation Project December 20, 1995 1999/2012 n.a. 35.70 Morocco Secondary, Tertiary, and Rural Roads Project June 8, 1995 2000/2015 n.a. 57.60 Tunisia National Rural Finance Project May 23, 1995 2001/2012 n.a. 65.00 Rural Roads Project January 31, 1995 2000/2011 n.a. 51.50 Secondary Education Support Project August 23, 1994 2000/2011 n.a. 98.30 Water Supply and Sewerage Project July 28, 1994 2000/2011 n.a. 29.00 Water Supply and Sewerage Project July 28, 1994 2000/2011 n.a. 29.00 35.70 978.70 n.a. = not applicable (IBRD loan). a. 'Blend" loamlcredit.

102 THE WORLD BANK ANNI XL.RILL'(,RT 1 99; five-year program of assistance to southerni and stages and production time while still rigorously eastern Mediterranean rim countries. In addi- maintaining product quality. The regional vice tion, the Bank has responded to the transna- presidency has also been a leader in developing tional initiative jointly proposed by Jordan and new training programs designed to enhance staff Israel for the integrated development of the lor- capacity and upgrade technical skills. Taken to- dan rift vallev. Bank staff worked with Jordanian gether, these initiatives should pay substanitial and Israeli teams on a preliminary report outlini- dividends in terms of further improvements in ing the scope of the development program, and the quality of the Bank's products and their re- the Bank is helping to finance the program's sponsiveness to clienit needs. preparatory planning stage. Improving internal organization, procedures, and business practices. Internally, the Bank's regional management and staff wvorked during the year to further enhance responsiveness to client needs. A broad-based approach to meeting those needs, involving a iudicious blend of financinig and analytical work selectively targeted to critical issues, is being complemtented by organizationial and procedural improvements designed to enhance the quality and timeliness of both lending and analytical activities. The region's strategic focus has been sharpened through organizational chanige involving coIn- solidation of Country Department operational units into four thematic divisions-for counltry- assistance strategy, private sector development anld infi-astructure, humani resources, an(d natural resources. Even stronger emphasis than hith- erto has been placed on1country-assistanice strategy documents and comprehenisive counitrv portfolio-performance reviews in response to country priorities. Cost effectiveness and results orientation are being promoted by greater del- egation of authority, both within headquarters staff and to field offices, with the latter expanded to include resident missions in Yemen and Gaza. In line with the recommendations of the Task Force on Portfolio Mvanagement (November 1992), the region is continuinig to strengthen the portfolio-management and supervision function, to encourage task maniager problem- solving in the field during supervision missions, and to increase local participation in supervision tasks wherever appropriate. Regional management and staff have worked intensively on1ways to streaamline the processing of all tasks and products, with the aim of reducing processing

S[:(TlION Ft I R MlimD[F E,\' rnAN NORTHl AFRICA 1(13 '% ;.\ I x I:\ iti im:S ()1I: Pil)l iI( -il A I I<,i I-l 1() ie 13R 1 AN [DIxl A A/s:sl1ANv(l: IN 1FI .\ 1 C CI)95)

AGRICULTURE

§$ Albania [DA-$10 million. More than 50,000 poor farm families are expected to benefit from a project that seeks to increase agricultural production by raising farm productivity through the rapid rehabilitation of existing irrigation and drainage infrastructure. Total cost: $44.1 million.

§$ Albania IDA-$6 million. Small farm and off-farm activities will be promoted, basic rural infrastructure repaired, and employment created for the rural population. Total cost: $12 million.

t Armenia IDA-$ 4 3 million. The level of irrigated agriculture production for food security will be maintained and water-resource management improved through the rehabilitation of irrigation infrastructure and the streamlining of the water-management system. Total cost: $57.2 million.

Benin IDA-$8 million. Funds will be provided to help finance projects and programs generated in line with recommendations of the country's national environmental action plan. Total cost: $9.3 million.

Bolivia [DA-$20.4 million. The government's efforts to strengthen land- administration institutions, improve land management, and provide land to landless peasants will be supported. Total cost: $27.2 million.

§t Brazil IBRD-$211 million. The quality of life for some 2.7 million people in the rural areas of Bahia, Ceara, and Sergipe will be improved by providing better access to water supply and other basic social and economic infrastructure and by increasing their production, incomes, and employment. Total cost: $351.7 million.

§t Central African IDA-$ 16.6 million. Some 25,000 low-income households are to benefit Republic from a project that seeks to raise livestock productivity by expanding animal-health services. Total cost: $32.5 million. §4t Chad IDA-$24.5 million. A program to enhance the supply response of the agriculture and livestock sectors is expected to bring more productive and sustainable technology to 550,000 producers-primarily smallholder farmers-and increase family incomes and well-being. Total cost: $25.6 million.

§4t China IBRD-$47.5 million; IDA-$200 million. Absolute poverty in thirty-five of the very poorest counties in the southwest will be reduced by increasing the incomes and productivity and improving the health and educational status of about 2.8 million upland smallholders. Total cost: $486.4 million.

t China IBRD-$100 million; IDA-$ 110 million.Some 5 million people in Hubei and Hunan provinces will benefit directly from a project that will finance high-priority water-control investments. Total cost: $551.9 million.

Note: Data used in this section have been compiled from documentation provided at the time of project approval. Projects marked by (§) are included in the Program of Targeted Interventions, and those marked by (t) are poverty-focused adjustment operations. Projects marked by (t) include the participation of primary stakeholders.

104 THE WORILD BANK ANNUAI. REPORT 1995 §t Colombia IBRD)-$51 million. A four-year program of techlinology developmenit and adaptation (emphasizing investmenit and research with potential to benefit small farmiers) and institUtional developmenit will be financed. Total cost: $84 million.

C6te d'lvoire IDA $5.) million. Actionis desigined to diversify and expanid private agricultural exports wvillhe supported. Total cost: Si 6.4 million. §t Dominicani Republic mu $78 million. Productivity, employmilenit, and incomes on ahout 5,000 small farms Shlould increase through investmenits in irrigation infrastruCture antd improved support services. Total cost: $43.2 million.

§t Egypt InRD-$2 7i million; II)A-$533 nmillion. Incomes of about 95,00(0 mostly poor farnmhouselholds shiould increase as a result of the proxision of timely and adecquate amouLits of irrigation water to three irrigation commandc areas. Total cost: $182.3 million. Ethiopia IDA-S1 20 million. Support for policy reforms that create an enablino environment ftor the growth of a competitive fertilizer sector- will coni- tribute to accelerated and sustainable growth in agricultural production and productivity. Total cost: $230.4 million. * Ethiopia IDA-S22 million. The developimienit of the informal and formal seecl sectors, institutional strenigtheninig, and human-resourn.e development will he suppor-ted. Total cost: $31.8 million. t Ghana IDA- $9imillion. The long-term sustainability of the fisheries subsector will he established, thereby maximizing its conitributionl to the econiomy. Total cost: $10.5 million. Ghanla II)A-$5 million. Funds from nOAreflows will he provided to supplemenit the agriculture-sector adjustment cr-edit approved in fiscal 1992. t Hondtiras io)\-$26.3 million. Funids from IDA reflows will he provided to supplement the agriculture-sector adjustmenit credit approved in fiscal 1 994. t India 1A- P282._ imillion. A statewide program to improve the productivity and sustainability of Tamil Nadu 's irrigation sector will be supported. Total cost: $49]) nmillion.

§t India IDA-$1 26 millioni. Agricultural extenision services xvillbe strengthenied and employmenit opportuLnities offered to some 300,0)( poor rural people in Assam state, thereby conitributinig to agricultural "rovvth and income generation. Total cost: $ 146.6 nmillion. India IDA-$39.5 million. Changes in the w%aythe cenitral government and the states develop and employ huniani resources in efforts to moderniize the agriCultural sector and achieve greater sectoral produt.tivity will he introduced. Fotal cost: $7 4.2 million. §t India II)A-$58 million. The first stage of a long-term development strategy of' the forestry sector in Madhya Pradesh-whvhose main beneficiaries will be tribal peoples and forest-fringe villagers-will he supported. Total cost: $67.3 million. § Indonesia ILKL)-$8() millioin. Efficienlt and eqIuitable lanid mIarkets will be fostered and social conflicts over land alleviated through acceleration of nonfor-est land titling and registration. LIoxer-inconie groutps will be the main beneficiaries. 'Iotal cost: $14(1.1 million.

PRIM. T SI \INIA\IRILS 105 t Iiidoniesia IRRD-$63 million. Regional agricultural researcih and developmelit wvill be strengthened, ensu-inig the location-specificity of technology and emplihasiuiniothe development of market-oriented technology packages. Total cost: $101 .8 nillion. Jordanl ibRi)-$80) Iillion). Thle transition to a more sustainable and efficienit use of resources, particularly water, will be supported, and markets xvill be freed up to enable the private sector to invest, produce, and trade in line xvith thc country s comparative advantage in agriculture. Jordanl iBRD-$6.6 million. The goveriinienit w ill be assisted in implenienitinig its agriculture-adjustment program. Total cost: S13.3 million. §t Madagascar in'.-$25.2 million. The first foUI vears of a long-termil extension progr-am to improve agricultural advisory services in the counitry's twenty-eight extenision districts will be supported. Total cost: S36.6 imillion. § Madagascar ILD\-$2 1 .2 million. The intcomiesof abouit 40,000 small-scale farm families are expected to rise as a result of a project that xvill increase agrictil- tual-l output and improve prodtictioni and productiVity on irrigation schenes. Total cost $29_" million. t Mali IrDA-x$6imillion. Key sectoral coonstraiLitsto private investmenit in agricul- tuL-almia-ketinig and processing wvillbe addressed. Total cost: $6.9 Ilmillionl. Mexico IIKRD-$85 million. Agr-iculttiral productivity will iincrease in selected rainfed areas through a program of rural investmenits, the transfer of agricultul-al techilolo"v throuIh private sector extenision, and institutionial development. Total cost $225.6 million.

§ Niger ILDA-$6.8 mnillion. A pilot project will test the private provision of services to small-scale irrigationi farmers and promote the adoptioll of loxv- cost techlinologies that meet small-farimler- requirements and capabilities. Total cost: $7.5 millioll. forestry sector § t Pakistan [PAx-$24 ) millioni. By improving the performance of the in Punjab, rural productioni (mairily in famlill forestry and livestock) will be increased, as w ill employment .and incomile for- smalillolders. Total cost: $33.8 miiillion.

Senegal in \-$45 million. The government's resuLimed program of agriculture ad- jtistnient following the January 1I994 devaluation of the ( FA franc will be supported.

§ Thailanid ILcRa-$1 18.1 m11illioin. Secure land tenure will be granted to an estimated 1 .1 millioni predominantly rul-al families from amolig the pool-est seg- nients of the populatioll Total cost $2106.8 million.

§ Tunisia IRRD-$6t5 millioni. Credit ,vill be made available throughi the National AgriCUltural Bank (BNA) for onifLrnm processinig and marketing investmenits, fishe-ies, anid other rural investments. Total cost: $420( million.

Ukraine via)n-$32 million. The national seed-systems capacity to produce high- q-JUality seed efficicntly xvill be improved. Total cost: $63.3 million. Uzbekistan 1rRn-$66i millioni.The cotton subsector will be modernized by supporting selective interventions to open it up to the world market and build the basis for efficiency improvements. Total cost: $84.6 million.

106 THL W Iain B \NKANNI A1 RFI I'xI 995 t Venezuela IBRD-S55 million. The management of national parks and other protected areas will he strengthened, anid public environmental research, training, and educatioll intensified. Total cost: S$5.9 million. §t Vel1eZUela IRRL)-$39 million. A new decenitralized puiblic agricultural extension service to serve the needs of poor farniers who are now without adequate extensioni services will be established. Total cost: $79 million).

§t V et Namn IIA-$1I()() millioni. More than 300,000 farm families in low-income regions will benefit directly from a project that aims to increase agricultural productioni througlh the rehabilitation and conmpletion of seven irrigation schenmes.Total cost: $135.7 m-illioni. §t Zambia ID-$60() mIillioin.An investnmenltprogram will suppor-t the agricultural sector's objectives of improvinig household food security, promoting better use of natur-al resources, generatinig inconmesand employment, and increasinig export earnings. Total cost: $35() million.

EDUCATION

Argenitinia 1BRD-$190(million. Studenit leariniig in seven selected provinces will be increased by finaniciniginvestmenits designed to increase the quality and efficiency of secondar-y educationi. Total cost: $268.7 millioll. §t Bolivia oDA-$40 million. The fir-st step in a long-term process of reform and qquality improvemiienit to strengtheni the quality, efficiency, and equity of basic education will be supported. Total cost: SI 78.9 million.

§ Cape Verde IDA-$l 1.5 million. A basic educaLtioniand traininag project aims to achieve universal primary education by 1999, increase the skill levels and productivity of the labor foice, and enhlanice institutional capacity. Total cost: $15.8.Smillion. t Chile KRL)-$To million. The internal and extcrnal efficiency, quality, and equity of all the 1,60(() publiCly finanicedsecondar-y schools in the counltl-y w ill be improved.

Chinla IBRD-$200 millioi. Reforimisin technology policy and institutionis will be supported so as to promote the developmenit of clean, productivity- enhalicinigtechnologies for China's industries. Total cost: $40)7million.

§t Chinia I1DA-$ 00nmillion. About 5 million poor schoolchiildrenwill benefit from a project to expand basic education, especially in remote areas in- habited by minioritynationialities. Intervenitionis to improve school attendance by girls are included. Total Cost: SI 77 millioll. §t Ghanla ID;-$9.6 illion. A demand-driven reorienitation1of the vocational skill- traininigsystem and improvemenitsin informal sector productivity in selected occupational areas are expected to benefit infor-malsector workers, includinigthe poorest urbanidwellers. Total cost: $1 2.4 millioni. §t Guinea IDA $42.5 million.A project to increase primary school enrollment and completionirates, improve teachinigand studenit learning, and strengthen education-systermmanagement will target girls and poor households in rural areas. Total cost: $53 m-illioni. §t Hondiuras IA-$3(10 nillion. The nationial policy of Cquitable access to educatiolial opportullitics will be supported by channeling resources especially to rural and incligenous areas. Total cost: $53.1 million.

PROIrCTSl sINNlARIFS107 §t India hI1A-$76().3 million. Access to primary educationi will he improved, more than 1.5 million children will complete primary education by reducing dropout rates, and the instructioniof, and learning achievement among, some 14 million children will be upgraded. Total cost: $310.5 million . to § Indoniesia IbRD-$ 132.5 million. About 250(:million textbooks will he provided primary and junior secondary studenits, with priority given to poor children. In addition, textbook production xvill he transferred from the government to the private sector Total cost: $355.2 millioni. science lIndolesia 1BRL-$69 million. The quality of professional, managerial, and and technology staff in key government ministr-ies ancl agencies will be upgraded. Total cost: $95 million. government Indonesia IRRD-S25 million. The government's strategy to moderinize accounting-information systems will be further supported. Total cost: S33.9 million. Jordal IBRD-$6() million. A Second HumnianResources Developmenit Invest- ment Project seeks to further the improvement of educational quality, building on the accomplishments of its predecessor Total cost: $1 86.7 million. will be im- Maldives IDA-$ 13.4 million. Primary and secondary education quality proved, the shortage of teachers (especially in the atolls) reduced, atoll primary teacher skills upgraded, and secondary educationi will be made more widelv available in the atolls. Total cost: $1 7.9 million. in coIn- tt Mali IDA-$(50 millioin. Balanlce-of-paymenlt support will be provided junctioni with the promiiotioniof urgently needed education reforms. 3 5 in §t Matiritaniia 1DA-$ millioni. A project to increase primary enrollment uLiderserved regions, increase girls' enrollmeint, expanid lower-secondary educationi capacity, and improve educationi quality ancdplanning will be suppor-ted.lotal cost: S42.6 million. and polytechnic NlaUritits IRR-$1I 6 millionl The governlmelt's program for higher education, aimed at producinig the manpower needed to support a more competitive econiomy, will be supported. Total cost: $26.5 million. will t Mexico IBRL)-$2(65 million. The quality of technical education and training be improved so that it meets the needs of the productive sector Total cost: $412 millioni. §t Nicaragtua IDA-S34 million. Efforts of the governimlenitto achieve a better quality of primary education and greater efficienicy of the school system will be supported. Total cost: $39.3 million . §t Pakistan IDA-$I 50 million. Support wvillbe provided to North-West Frontier Province's primary educationi programf, which seeks to improve access, equity, ancl efiicieicv, while enhanicing the quality of the learninig environment. Total cost: $813.1 millioni. §t Peru iBmr-$ 1446.4million. The quality of primary education will be raised by rehabilitating dilapidated classroolims in poor, rural areas and bv distribut- ing teachinig materials and training teachers on their use. Total cost: $298.6 miiillioni.

108 THy WORI) BANK ANNI \1.RFi)n'R I 1 995 Russia IBRD)-$4() million. The quality and supply of skills needed to support the transition to a nmarket economny xvill be increased, and priority market-oriented traininig programs wNillbe developed. Total cost: $51 .4 million.

St. Lucia IBRD-$3.4 imiillion;1DA-$3.3 million. Reforms to basic educationi- aimed at increasing educational efficiency and effectiveness and at enhanicing equLityof access-will be supported. Total cost: $12.8 million. §t Togo IDA-$36.6 million. Sohool qiuality will be improved throuIgh school coni- structioni and rehabilitationi, textbook provision, and the introduLCtiollof schiool-based experiments in teachinig and learning processes. Total cost: $46.6 million. § Tuniisia IBRD 8-98.3 million. Basic and secondary edticationi quality will be raised and access increased so as to accommodate the projectecd increase in school enrollmenits. Total cost: SI 843 million.

ENVIRONMENT

China II-RIl)-11() million. The main water resources in Liaoninig province vvill be pr-otected to allow their sustained economic ancl safe use for drinking, industrial, and agricultural ptirposes. Total cost: $350.8 nmillion. t Estonlia IBRD-$2 million. Pollution in Haapsalu bay and in the Matsalu bay catchriment area \vill be reduced thioLuIL support for the decentralization of environimenita managemenit responisibilities. Iotal cost: $8.4 million. t Hoiiduras IA-S 1 0.8 million. The institutional fi-amexvork reqtiired for successftil environmental managemnent and implementation oftneeded investments at the local level will be developed. ]otal cost: S12.5 million. India IwRo-$143 millioll; 1DA-S25 millicon.FouL- state pollution-control boards will be strengthienied, and efforts by individual firmis to abate pol- Ititioni xill be suppor-ted. Total cost: $33() million. t Latvia IRRD-$4 illioii. In the conitext of the couLitry's legal obligationis to protect the Baltic sea from ecological degradation, xvater Lndclwaste\vater services in LIiepaja wvillbe improved. Total cost $2 1 2 million. LebanoIn II.RD-$55 mlillioni. Unsanitary clumping of solid wvastewvill be eliminated, and methods of waste collectioni and disposal improxed. Total cost: $135 million . Lithuania iBRI)-$7 million. In the context of the country 's legal obligations to protect the Baltic sea from ecological degradation, water and wastewater services in Klaipeda will be improved. Total cost: $23. 1 million.

Organizationi of HRi-$6.8 millioni; IIDA-$4.7 million. Public health risks will be reduced Eastern Caribbean and the environimilenitalinteglrity of the foul island states of the Organiza- States coUntrlies tion of Easterin Caribbean States will be protected by improving solid waste-maniagenieit facilities and fatilitating compliance of measures re- stricting dumping of ship-generated solid waste into the interinationial anid territorial wvatersof the wvider Caribbeanl sea. Regional opportuniities for reduction, recycling, reuse, and recovery of xvaste w ill also he identified. Total cost: 850.5 million.

PR0FrCT SI \IMIARIFr 109 Russia IBRD-S 110 million. Environmental managemenit institutions at the federal level and in three demonistrationi regionis will he strengtllelled, and pollution-abatemenlt projects developed and undertaken. Total cost: S194.8 million.

Trinidad and Tobago IBRD-$6.3 million. Tle institutionial capacity to plan and implement soutnd environmllenitalmaniagemenit will be built. Total cost: $10.5 lmiillioni.

FINANCIAL SECTOR

Argenltinla 113RD-$301 million. The government's effort to promote fiscal reform in its provinces will be supported. Estoinia [RR[)-$10 million. The implementationi of reforms in the finanlcial and enterpr-isesector-s wvillbe supported. Total cost: $31.8 millioni.

Guyana IDA--S 15.5 million. The environment for the private entreprenieur will be improved anid the direct role of the state in economic activities reduced. t Guyania IDA-S3.5 millioni.Sustainable institution-building mechanisms supporting the finanicial and private sectors will be implemented. Total cost: $4 million.

GUyania [DA-S3.1 million. IDA reflows will be made available to help finance the Private Sector Development Adjustment Credit, approved in the amount of $15.5 million (see above).

India IBRD-S700 million. Greater market orientation, allocative efficiency, technical competence, and competition wvillbe fostered in India's financial system, thus contributing to meeting the long-term financing needs of the countr-y's investors. Total cost: $1 ,534.1 million. Kazakhistain IBRD-$62 million Funldamncital restructurino- in the enterprise and finanicial sectors will be accelerated and deepened.

Kvrgyz Republic IA-$15 million. Private enterprises will be assisted through provision of technical assistance and, through a newvlyestablished finanicial inter- mediarn foreigni exchan"ge for investmenit and incremenital working capital. Total cost $2(.3 million.

Latvia IBRD-$35 million. Reforms in the enter-pr-iseand finalncial sectors will be accelerated. Total cost: $114 million. Lithuania 113RI-$25' million. Credit will be channelled through selected participating banks to help finanice investment and related permanenit working capital needs of private and privatized enterprises. Total cost: $50.3 million . t Macedonia, former IDy-S85 million. Implementationi of major reforms in the enterprise and Yugoslav Republic of bankinig sectors will be supported. Moreover, the ability of the social safety net program to provide more equitable protection against poverty will be strengthened. Mauritania IDA-S7.2 million. Activities in support of the governmnent's private sector development program, includinig those encouraginig investor interest in the private sector and finanacialsector strengthening, will be financed. Total cost: $7.9 million.

110 THE WORLD BANK ANNI [AI REPORT1995 Mexico IBRD-$1,000 million. The government's program for restructuring of the financial sector will be supported. Mexico laRo-$23.6 million. Technical assistance will be provided to improve financial-system sounldniess,support pension-system development, and strengthen public investment evaluationi and budgeting. lotal cost: $31 .4 millioni. Mexico IBRD-S1 3.8 million. Supplemental FLundswill he provided to help finanice the Financial Sector reclhnical Assistance Project (see above).

Pakistain IBRD-$2 16 million. A set of long-term policy and institutional developmenit objectives for the financial sector xvill be implemented. Total cost: $1,016 million. Paraguay IBRea-$5) millioin. The private sector will be stimulated to play an enhanced role in fostering economic growth. Total cost: $90 million.

INDUSTRY

Bangladesh lDA-$3 2 million Fullds froml IDA refloWs xvill be provided to supplemenit the jute sector-adjustment credit approved in fiscal 1994. China leRD-S1 75 million. Shenyang's industrial base will be reform-led and reorganized through the creation of a modern, corporate-led sector, with substantial private participation. Total cost: $363.2 million. Ghanla IDA-S 13 million. Eftforts to restructure, reform, and commllercialize the couLntry's teclhniical research and development establishment along competitive and demand-driven principles wvillhe supported. Total cost: $15.6 million. Senegal IDA-54) million. A program of policy reforms-necessary for establishing an environmiiienitconiducive to supply-responise and self-sustained growth of the private sector-will be supported.

MINING/OTHER EXTRACTIVE

§ Ghania IDA-$12.3 millioIn. Sustainable mining sector development wvillbe supported through the strengthening of mining sector institutions and assistance to small-scale mining enterprises. Total cost: $13.7 million. t Tanlzanlia 1DA-$12.5 million. The development of mining by the private sector in an environimentally sustainable mannier xvill be supported. Total cost: $13.9 million

MULTISECTOR

Albaniia IDA--$4 million. Procedures in tax and customs administration, as well as a value-added tax system, will be developed and implemenited. Total cost: $4.4 million. tt Algeria BRD-S1 50 million. A broad programii of policy reforms to accelerate the transition to a market economy will be supported.

PROJECT SUNINIARIES 111 t Arnienlia IDA $60) million. The governmenits structural reform program, designed to break inflationar-y expectations, promote sustained economic growti, and improve lixing standards of the poor, wvillbe supported. t Beniii IDA-$4() million. Management of public resources and the delivery of basic social services wvillbe improved. Bolivia 1DA-SS . 6r million. Funids fronm1DA reflowvs will be provided to supplement the structural adijustmenit creclit approvecl in fiscal 1992 Bulgaria iRi)-S125 million. A portion of the upfront costs of the recent debt and debt-servicc reduction agreement on the restructur-inig of public external debt xvillbe financed.

BLirunldi IIDA-$14.6 imillioni.Imilports needed to improve the social coniditions of the population, rehabilitate infrastructure, and restore basic government functions will he financed. Total cost: $53 million.

Cambodia IDA $17 million. The transitioni to a market economny will be assisted through a program of technical assistance. Total cost: $18.7 million.

CamiierooII IA-$ 3 2 .8 million. Funids from IDA reflovs wvillhe provided to supplement the economic recovery credit approved in fiscal 1994. Cote d'lvoire iDA-S 100(million. The government's stabilization andcstrmcttiral adjustment program for the 19904-96 period wvillbe supported.

C6te d'lvoire iD\-$7 7.9 million. FuLidsfromil IDA reflows xvillbe provided to supplement the credit supporting the government's stabilizationi and structur-al adjtistmtent program (see above). Ecuador IKRRD-$260()million. The government's modernization program will be supported by solidifying recenit gains toward macroeconomic stability and accelerating the counitry's structural adjustment process. ECuador IBRD)-880 million. The implementationi of a debt agreemenit betwveen Ecuador- and its commercial bank creditors Nvillbe supported by helping to finance the principal and interest collateral for par and discoulit boiiids.

Ethiopia IDA-$200,000. f'ulids from IDA refloxvs will be providecl to supplement the structural adjustment credit approved in fiscal 1993.

t Georgia IL)A-$75 millionI. Ihe government's econonmic reform program, aimed at restoring macroeconomnic stability, promotin- the resumption of groxwth, imrproving living standards, and maintaining a safety net, will be supported. t Ghala IDA-$7S) million. The goverinmenit's program to promote privatc sector groxvth and to reallocate public expenditures toxvard basic education, health, and rul-al infrastructure xvill be suppor-ted. t Guinlea iitx-$?3 million. Reforrms to strengthen the monetary, regtilatorv supervisory, and juClicial environment; develop a bridge hetwseenthe formal and informal sectors; build upoIn the humain-resoul-ce base; and improve institutional capacity xill be supported. t Haiti IIA-S4 0 million. Enier"encV imports xvill he financed to help reactivate the econiomy and gixe an immediate stimulus to ccononic groxvth.

1 12 THE WoRI H BEANKANNI 'i\ RI i()RT 1909 t Kazakhstan [BR[)-$ 18(0 million. The rapid anid effective restructuring of the enterprise sector vill be supported t Kyrgyz Republic DA[-$45 millioni. Agricultural productivity vill be increased and mar-ket- ing chalannelsimproved, thereby increasing far-mers in-omes anid alleviating poverty in rural areas, where the most impoverished live. t Malawi ioA-$S40 millioni. Funds xvill be mlade available to supplemeniLtthe Entrepreneurship) Development and Drought Recovery Project approved in fiscal 19)92. t Malawi IIxA-$4.6 nmillion.Funds from oxAreflowvs vill be provided to supplement the Entreprenieurship Development andc1Drouglht Recovery Project approved in fiscal 1992. t Moldova 1BRD-$6t) million. Measures needed to induce a quick response in the real economy to macroeconomic tighteninig and relative price move- ments, as well as those aimed at strengthening the safety net, will be supportecl.

Moldova IBRP-S3() million. Guarantees against the risks associated with government performance andclar aind ci il disturbaicc force tnaeurir available on a first-come, first-served basis to anvyforeign commer-cial entity financing a pre-export transaction in Moldova will be backstopped.

Poland IRRI)-$1 7() 111illiOn.Part of the costs expected to be incurred in coninec- tion with tilc implemeintation of a debt and1debt-service reduction op- cration will bc financed. RUssia IBRI)-SGO() million. The goxvernment'sprogram of macr-oeconomicstabi- lizationi andl structural reforms xwillbe supported.

Russia iRRD[S404 million. FIunds *villbe providled to pr-epare projects and related activities for xvhich Banik financing has been or is expected1 to be requested dLurinigthe next three fiscal years. Total Cost: $7t79.3m1 illioI. Rwal1da I )A-$5() m illion. The country's emergency recovery program will be supp orted througIl the financing of high-priority im ports and tecliical assistalnce.

Senlegal IDA-$3.2 million. Funds from IDA refloxvs vill be provided to supplc- ment the econiomic recovery credit approved in fiscall 1994. Sierra Leone IDA-$300,000. Funids fromiIDA refloxVSwill be pr-ovidedto supplen ciit the structural adjustimient credit approved in fiscal 1994. Uganda IDA- $()00,000. FuniclsfroIm1 IDA refloxvs 'ill be provided to stipplemeiit the second structural adjustment credit approved in fiscal 1994. t Ukraine IBR[D-500() million. The government s etolomic reform program, designed to stabilize the economy, create the coniditionis for a resumnption of econonmic grovth, ald1 provide ani .adequate safety net, vill be supported. t Uzbekistan 1BRDE-S160 n1illioll.The government wNillbe assisted in the designi and inlplemelltationi of its struCtural reform prograll, Vilich illcludes ani cj- uitable reform of the pensioni systenm. t Viet Nain l[A-S 50 nmillion.The governments mediunL-terni program of macroeconornic stabilization aild structural reform, and incIudinig social issues of adjustment, wvillbe supported.

PRuIECI SCIMNIARir 113 Zambia IDA-$13.7 millioni.Funds from ID,A reflows wvillbe provided to supplement the Economic and Social Adjustment Credit approved in fiscal 1994.

OIL, GAS, AND COAL

Azerbaijan InA-$ 2 0.8 million. Techntical assistance wtill be provided for the restructuring of the offshore Guneshli oil field and for strengtheniing petroleum subsector institutionis. Total cost: $22.9 million.

Bangladesh IDA-$1 2(1.8 millioni. The two gas transmission subsystems in the country will be intercoinnected, thereby alleviating gas-supplv shortages. Total cost: $161.6 millioni.

Colombia IBRL)-$11 millioni. Techlnical assistaince will be provided to help implement legal/regulatory reforms for the energy sector and to strengthen associated public institutionis. Total cost: $12.4 million.

Latvia IBRD-S 14 million. The district heating system in the city of Jelgava will be rehabilitated. Total cost: SI 8.2 million. PoIand IBRD-$ 4 5 million. Funds will be provided to the Katowice District Heating Enterprise to help finanace investmenits in energy conservation and efficiency, asset-life extensioni, and reduction of air pollution. Total cost: $972.) millioni.

Russia BRHD-$] 06.5 million. Funds will be provided to help finance investments to rehabilitate the gas-distribution network in the city of \,olgograd, investmeints in energy-efficient equipmenlt by gas utilities in ten cities, and related technical assistance. Total cost: $13 1.4 million.

Rtussia IBRD--$99 millioni.Emergenicy measures will be taken to contain and clean up the enormous oil spill in the Komi Republic, which took place in 1994. Total cost: S 14(0 million.

Thailan1d (BRD-$ 155 million. An offshore and onshore gas pipeline, together xvith related facilities, will be conistructed, thereby increasing the utilization of domestic natural gas resources. Total cost: $674.5 million. Tlhailanld BRD--590 mIillioin.Air pollution attributable to petroleum fuels will be reduced through the rcformulation of gasoline and diesel oil and improvements in the refinery operations of Bangchak Petroleum Public Company. Total cost: $329.1 million.

POPULATION, HEALTH, AND NUTRITION

§ Albania IDA--$S2.4 millioni. Steps will be taken to prevent further deterioration of basic healthI services in poorer regionis during the couLntr-y'seconomic transition. Total cost: $16 million.

§ t Bangladesh IDA-$59.8 million. The development of a national nutrition program, focusing on the undernourished (particularly poor women and children) will be initiated. Total cost: $67.3 million. §t Beinin IDA-$27.8 millioni.The quality and efficiency of priority health services will be improved and faamily-plannling services expanded, thereby improving the health and well-being of the counitry's people, particularly the most vulnerable groups. Total cost: $33.4 million.

1 14 THL W()RKIDBANK ANNI'AI. REPORT 1995 t Burtiuidi In x-S91 .3 million. Healthi services xxill be rehabilitated, key sector- re- forms impnlemlented,and family-planning activities strengthened, therebh improv ing the quality of health services, making them moore accessible, anid sloxving population growth. Total cost: $36j ) million. §t Camerooi in \l-$43 million. Expansion of primary health care to underserved low- incom11epopulatiols, development and implemcintatioll of a national populationi policy, and r eforms of the health mllinliStlry\Vill be supported. Total cost: $48. I million. § t Chad ivcx\-$20).4 million. A project to help the government implement its poptilatioll, family planning, and sIns-control policies will disproportioll- ately beniefit the poor. Total cost SN72 nilliollm Chad A)N-'S9.8 nmillion.Ftuds xill be pr-oxided to supplemelnIt the Social Development Action Project approved in fiscal 190(1in the amonunt of $13.4 miiillion. § China ii) \-$S)() illioin. Ablout 1()() mlillioInpeople fr-omilamong the poorest Counties in eight provinces \\ ill benefit froml in reased access to, ancl in- proxed clualit\ and effectiveness of, mater-nialanid child-health care. Total cost: $1387 million. China ra l-$7 million; ir)\-$2U million. To redtice the incicdieice of iodiine- deficic'ncv disordclr, salt-iodizatioin .apacitv xxill he increased fromilabout 3.5 millioll toils per year (NJtpy) to abouit 8.2 Mtply thl-rough modieriliza- tion of existing capacity and Creation of new capacity Total cost: S1 52.3 mlillion. § Croatia ILaRI)-S4() mlillion.The government's health -care reform program, which concentrates on pro\viding primary health Cal-e to Underserved areas, \vill be suppor-ted. Total cost: $54 million. Estonia IBRI)-$18 million. Health-promotion and disease-prex\ention progLramlls xill be emphasized, the efficien1cy and quLlity of health services enhaniced, and sector hUimanresour1Ces dexeloped. Total cost: $34.5 million.

§t Indlia ILA-$ 1 33 mlillion. The efficiency in the allocatiton of healthi resources in Andhra Pradesh xvill be upgraded, and the q ullity, effectiveness, and co- erage of health services xvill be improx ed. Total cost: $1 59 million. §t InCdoniesia aIRD-588Il iillion .The delixery anlCdqjuallity of basic healthi caL-ein six provinces on fixe islands xill be improx ed, thus benefitinig about 27 million people, most of wxhomare impoverished. Total cost: $134.3 million. §t Kenlya I1)i\-54() mlillioIn.Preventive measures xvill be taken to reduce the risk of sexually transmlitted infectiois, and provision of health and comiuiniiiitv care for infected personis x-ill be in.reaised.Institution-buildilng measures are incluided. Total cost: 65.5 miiillion.

§t Lao People's ILO;\-$ 1 9.2 million. Basic health ser\ ic,es vill he upgl-aded ill t\Vo pro\ - Democratic Republic inces, and a program of malaria control xvill be undertaken in eight of the country''s seventeen proxinces. Total cost: $24 mlillion. § Lebanloni ca1 i35million. Health facilities xill be rehabilitated, with pLarticu- lar attenitioni given to improvino the axailability of essential pulblic ser- xices, to underserved people. Total cost: $48.1 mlillion.

PIR(*IH T St IMNIxARIE 11| which plans §t Pakistan IDA-S65.1 muillion.The entire nationial population program, to increase dramatically the coverage aind quality of family-planining services,especially to rural and poor urhan areas, will be supported. Total cost: S287.6 million. those living in §t Panama IaRD-S25 miillio. The nUtrition an1dhealthi stat3Usof Panama's twenty-eight poorest districts will improve, ancl nevwwater- supply systems wXvillbe constructed in ahout 450( Unserved communities. Total cost: S41 .7 million. of women- §t Plhilippines IBRD-SIS18 illion. Attempts to improve the health status those of reproductive age, in particular-will he supported, thereby reducing fertility, female nmorhidity, and maternal mortality. Fotal cost: $1 36.4 million. status of the §t Senegal IDA-$ 18.2 million. The deterior-atioin in the nutl-itionIal most vulnerable groups in the poorest tirbani areas will he halted, and local capacity to deliver community-manlaged nutr-itioni services with private sector efficienicy established. Total cost: $28 million. ser- §t Turkey saD-S1 5(0 million. Equity in access to essential primary health-carc vices xvill h-e impro\ed in twenty-three low-incomile easterin provinces, and the effectiveness ancd efficiency of the health service-delivery system will be enhaniced. Total cost: 32(0) million. of § t Uganda IDA-$45 million. A demonstration proicct will test the feasibility delivering an essential health-services package to district populations within a prtident finanicial policy framework for the health sector. Total cost: $75. 1 millionl. a method- Uruguay iLsan-S15.6 million. The governmenit will he helped in setting ological and institutiolnal foundation to rationalize health-sector spending ITotalcost: $28 million. § VenezUela I;RE)-$54 million. Gains in the health status of 3 million tisers of gov- ernmienit health services xvill be made throtigh a strengthening of health- service delivery in four- states. Total cost: 3108 million. will Zam-bia Il)A-$56 million. The government's health-sector reformnprogram be supported. Total cost: 3536.9 million wvillhe § t Zambia IIA-$33() million. The government's poverty-reduction program assisted by finanicing community initiatives (feeder roads, water-supply svstems, and other public infrastrtcture) and building capacity for povertv monitoring and analysis. Total cost: $47. 7 million.

POWER

Albania 1DA-$5 million. An actioin plan to reduce nontechnical powver-system losses wvillbe implemented. Total cost: $8.7 million. vunits Armenia IL)A-3 1 3.7 million. The deterioration of selected power-generationl wvillbe arrested and reversed, antd electricity-dispatchi commtiniications cost: and distributioll systems \vill 1 e strengthiened and maintained. Total $14.5 minillion. by integrat- t Belize IRa-S1 11.5 million. Electric powver supply Will he improved ing major load ceniters and providing access to econiomic, reliable, and cleani sources of energy. Total cost: $33 million.

116 FimL WoRI I) BANK ANNI ,\i RFORki 1905 Chiina IRitL)--$400() Iillioni. Rapidly expandiing power demand in Zhejiang province will he met through large generation additionis antd associated trains- mission, and power-sector reforms Swillhe promiloted. Total cost: $1,789.3 million. China aRRDo-$27()million. The conistruictioniof a 500-kyvnetwork will greatly increase critically nieeded power-tranrsmission capability in Sichuan province and the southwest China power grid. Total cost: S874.4 million. Cote d'Ivoire IDA--$7?9.7 million. Finance will be provided in support of power-sector reform, power-generation expansion) through a private power produicer, and power-system reinfo-ceement wx-orks.Total cost: $86.3 million. Ghania IL)A-S1 17.6 millioni.The generating capacity required to meet electricity demand will be constructed, and improvements will be made to transmission and genlerationi systems. Total cost: 5 14.3 million. Indonesia IBRL)-S3')8 million. The coverage and supply of electricitv to rural ar-eas will be expanded throughL a time-slice investment program Total cost: $841 .3 million. Pakistanl iBRL)-250 mzillion. The private sector-'s role in the development, o;ner- ship, and operation of power and relaLtedinfrastructure tfacilities will increase though the financing of selected subprojects. Total cost: 52,390 million. Pertu [RRD--$ 1 50 million. The government's electricity-privatization prog ram and related legal/regulatory and institutional reforms will he supported. t Thailanid iBR)L-$10() million. The Electr-icity Generating Authority of Thailand will be assisted in optimizing its investimlenitdecisions and in meeting peak power cdeman(dfrom p(2000onwards at least cost. Total cost: $475.4 million.

Thailand IBRI)-$5() million. The Provincial Electricity Authority's subtransmission network xvill he expaided, anid its power-distribution systerm will be tup- graLded.Total cost: $3 7/5million.

Ukraine IBRD-$1 14 million. A Hvydr-opowverRehabilitation and Systcm Control Project seeks to improve the efficiency and availability of hydropower plants and increase efficiency in the loading of hNdro- and thermal power-generation unlits. rotal cost: $21 5. 1 million. Viet Namn l)A--S 165 million The oovernment vill hneassisted in its efforts to rehabilitate and expand the counitry's powver system. Total cost: $24'7.) million.

PUBLIC SECTOR MANAGEMENT Albania I)A-Si 5 million. Support will be provided for the development of a banking system, -ontinued privatization in the industrial sector, ancd downsizing or liquidation of inviable state enterprises. Argenltinia iBRIP-550() million. The government will he assisted in providing an or- dierly framework for costs associateci ith the privatization/closure ot wveakprOVincial banks. Bolivia IA--$ 14.7 million. The government's privatization program wvillbe supported, and an overall regulator- firaLimeworkFor the fIture development of key sectors will he designed and established. Total cost: $23.3 nmillion.

PlOiiC;1 S N1iAkirF' 17 Bolivia IDA-$ 11 million. The first phase of a comprehensive judicial reform program wvillbe supported. Total cost: 512.8 million.

Chinia IBRD-$275 million; IDA-$75 million. A strategy to develop a market- based housing system and a robust social security system that would free enterprises of these responsibilities *vill be tested and further developed in four cities. Total cost: $950 million. Chinla IBRD-$ 2 5 million; IDA-$25 nmillion.Consultancies, traininlg, studies, and equipment at the cenitral and provincial levels will he finaniced to help the government implement its major reform of fiscal institutions and practices. Total cost: SI 05.5 million.

Chinla IDA $10( million. The legal framework needed to support economic reform will be improved and strengthenied. Total cost: S13.3 million.

Ecuador IBRD-$2(0) million. Technical assistance wvillbe provided to ensure that the fiscal and managemenit objectives emhodied in the government's modernization strategy are achiieved and will be sustained. Total cost: $25 million.

Ecuador IBRD-$12 million. Techinical assistance will be provided to prepare for the necessary reforms in the electricity and telecommunications sectors. Total cost: $16n million.

Georgia IDA-$ l1 i)Imillion. The institutional framework for finanicial sector reforms will be prepared, institutional economic management capacities strenmuthened, and activities to help accelerate privatization financed. Total cost: $10).9 million.

Guatemala sRD-$9.4 million. The financial management capacity of the governmenit will be strengthenied, thereby helping restore public confidence in public sector integrity and competenice. Total cost: 810.5 million.

lidollesia IKRD-$28 million Indoinesia will be helped in assessing strategic priorities for reducing infrastructure bottlenecks and developing an updated strategy for public-private partnerships and suitable frameworks for private participation in infrastructure provision. Total cost: $33.6( million.

Kenlya IDA-$ 7 5.4 million. The first phase of the governm111enlt'scivil service reform progranm xvill be supported. Total cost: $157 million.

MaUritania IDA $30( million. Structural measures needed to develop the private sector, strengthen the financial sector, and promote growth in fishinig and mining will be supported.

§t Mexico IBRD-$500 million. About 10 million people are to benefit from rural investmiienitsthat wvillfinance basic social and economic infrastructure, provide potable water to small localities, rehabilitate andc maintain roads, and support income-generating projects. Total cost: $1,095 million. Nicaragula DA-$23 million. l ong- and short-term consultants, training, and information technology xill be financed to support the government's institutionial restructurilg-reform program. Total cost: $33.5 million.

Nicaragua IDA-$().3 million. FuLids from iL)x\refloxvs will be provided to supplement the seconid Econiomic Recovery Credit approved in fiscal 1994.

I1S THL-VL RI L) BA\NK ANNI ALIRrI(wRT i 9095 Russia iBRs)-$ I 6.S million. Support xvii bIe provided for the dev elopment anId installation of an effectixe and efficient national system of tax adLliniis- tration. Total cost $2 7.4 million. Senegal iL)--$ 1 72Rmillion. The government xii] he assisted in implementing its strategy to strengthen the private sector's supply response to the re-ent improvement of the police environment and to enable it to take advantage of new opportunities. Total cost: $20.3 millioni. Ftirkmeniistanl cnv)-$25 million. Constrainits to the designi aLid implementation of a reformi program xwillbe alleviated, Lad the institutiolnLIlframework ftor mo- bilizinig and coordinating techlnical assistance will b-e strengthened. Iotal cost: $26 milliol. U'ganda IDA-$36.4 million. Gr-eater- locail institutional and huimanz capacity wxill be establislhed to develop and implement public policv and support the gro\\ th of the private sector Total cost: $42.2 million.

SOCIAL SECTOR

§t Cambodia ID-$2-() million. Small-scale projects For the rehabilitationi and reconistructioni of social anid econiomiiicinfr-astructtire, as wcll as for othel- so- cially' productive activities-all of which xvill benefit the poor-wvill be finainced. Total cost: $22.2 million. § Kazakhstan im---54 1 .1 million. Continiued availability of social servicec, including proxision ot an effective social safety net foi the x ulnel-able and poor, will he ensul-ed by promotinig thc orderly dliVestituLreof social assets from enterprises to munticipalities. Total cost: $54.7 milliol. §t Kvrgyz Repuiblic I)\--$] 17 million. M4echanisms to identify the poor- xill be improved anid social programs made more effective and efficienit in targeting and deliv- erinig social assistance. Total cost: $20.8 million. § Macedonia, former iVA--$14 million. Labor redeployment in communities affected by enter- Yugoslav Republic of prise restructurinlilg iil be supported, and a program that better- ta rgets social assistance to the poor \ ill be dcx eloped, thus helping to sustain the government's reform program. TotaIlcost: 517.1 millioin. §ft Mlexico IkRD-$0()() million. Essential soc ial erx ices (in educatioll and hiealth) will be pr-otected and existing social saIfety net measul-es strengthened to cLiShliOnthe poor firomIlthe effects ot the ecojionoic cl-isic. Total cost: $2,000 miiillion. §i Roniania IKRD-$55.4 millioI. Reforms in social insuraLnce and assistance programs, xill be implemented, the capacity of labor offices to adminiister- claims fOI- Unemploynient benefits strengthienied, and an adult training svsteni developed. Total cost: $95.2 million.

TELECOMMUNICATIONS

Indoniesia ikRv)-$325 million. Implemeintatioin of an ongoing telecommunications sector-reformii progr-ami,aimzed at bringing sector performaildncC up to international competitive levels, xill be supported. Total cost: $i,41 2.6 million .

H'tl 8'S \l\i \R.FS 1 19t TRANSPORTATION

§ Albanlia IDA-$1 5 million. Rural roads, now in very poor conditioni due to lack of maintenance, will be rehabilitated by contractors using labor-intensive methods that will genlerate 12,0(00)manyear jobs-benefitinig especially the poor anid the unemployed-over a three-year period. Total cost: S33.6 illioii. * Algeria 5RDa-$130 million. The backlog of roads and bridges in need of rehabilitation and mainitenanice will be reduced. Total cost: $230( million. Brazil IRRO-S 102 million. An integrated urbanitransport system for the Recife metropolitan area w ill be developed, wihile services will be decentralized from the federal to the state level. Total cost: $203.8 million.

Brazil IHRtD-$99-n million. An initegratedi urban tranisport system for the Belo Horizonte metropolitan area will be developed, while services xvill be decenitralized from the federal to the state level. Total cost: $1 97.3 million. CarTerooi IDA-S 10.2 million. The tranisport-sector reform program--which aims at improving mohilization and allocation of resources, maintenllnce of transport infrastructure, and overall sector-al efficiency-will be supported. Total cost: 523.9 million.

Chad IDA-$ 12.7 million. FuLidswill be provided to supplemenit the Second Transpor-t Sector Project approved in fiscal 1993. Chile mIRD-S 120 million. Key, innovative subcomponents of the Ministry of Public Works' 199'5-938 Road Investment and Maintenance Program will be finaniced. Total cost: $2,075.3 million.

t Chinla lRD-$4O0 illiioii. A seventh railwvaysproject will address key issues in railway reform and critical constraints in railway capacity. Total cost: $ 1,7`47. 5 m11i l i. Chinla isaD-S2 10 million. Capacity of six inlanid waterxvays will be expanded to remove bottlenecks and promote economic development. Total cost: $556.8i million.

China BRD-S 15(0) millioni. Development of road infrastructure in the Xinjiang UIygurAutoniomous Region will be supported. Total cost: S317 5 million. Croatia IBRD-580 miillioiI. The imlodernizatioin and transformation of the transport sector will be supported and acceler-ated, wvith special emphasis on the mnainiroad network and the Croatian Roads Authority. Total cost: $56j7.8 million. § Gabon Man-S 5 2 million. Institutional management capacity in the transport and uL-bansectors will be streng,thienied, a transport-sector strategy an d investment plan established, and labor-intensive methods for ul-han civil works tested. Total cost: $8.3 million. Haiti IL.A-S50 million. The government will be assisted in implemenitinig a comprehensive five-year road-maintenianice and rehabilitationl program on the intercity road network and in Port-au-Prince. Total cost: S125 million. Htiigary vfBRD-$38 millioln.Urban transport reforms undertakeni by the city of Budapest and the Budapest Transport Company will he suppor-ted. Total cost: $67.1 million.

12'(0) TonrWOVRI i1 BANK ANNI Il RoIF )i I1095) Korea, Republic of isRD-$1 00i million. The niajor environmental concerns in Koreani maritime transport will be addressed, and the level of noise, air pollution, and traffic congestion in Pusan reduced. Total cost: $1,1)7 million.

Korea, Republic of IaR[)-$S1 00 million. The potential of Pusan's transpor-t services wvillbe met by introducinig a congestion-man agement system, expanlding capacity and institutionial development. Total cost: $365.4 million. Macedonlia, forimler JBRL)--$24million. The couLitry's tranisit crisis, caused by the closinig of Yugoslav Republic of the Serbian andi Greek borders to the transport of goods, will be addressed by the upgrading of east-w\est transit corridors. Total cost: $38.7 millioln. Malawi IDA-$1 6.2 million. The government's program for revitalizing the Nacala rail route, restructuiring and eventually privatizing Malav,i Rail- ways, and coniniercializinig and privatizing Nlalawi Lake Services will be financed. Total cost: S29 niillion. Matirititis IBRD-$30.5 million. Environimentally sound improvements to the efficiency and competitiveiiess of port services will le supported. Total cost: $100.2 niillion. § Morocco [BRD-$57 6 iiiillioni.By improving niore than 3(0(10 kilometers of til- paved rural roads and paved branichi roads, access by the rural poor to social services and niarkets will be improved. Total cost: $194.1 million.

RLISSia iBRD-$329 millioni.Essential urban transport capacity in fourteen cities will be preserved by linkiinigfinanicinig of urgently needed replacenient vehicles and spare parts to the implementation of refornis. Total cost: $391 million.

§ TuIIisia IFRIR-$51.5 niillion. About 3(00 kilomieter-sof gravel roads will be rehabilitated, and sonie 7 5 kilometers of priority rural roads will be upgraded. Total cost: $88. 7 million.

URBAN DEVELOPMENT

Algeria IBR)-S5 I niillion. Econiomic, social, and physical assets destroyed by the Auoust 1994 earthquake in Mascara province will be restorecl. Total cost: $83.6 imillion.

Argentina ]BRI)-$225 million. Finanicial support and incenitives will be provided fcr- the provinces to undertake their owonpublic sector-reforni programs coni- sistent with the nationial program. Total cost: S32 1 million.

Argentinia IR F-$2l]) niillion. Public sector manaienent at the provincial and municipal levels will be iiiade niore effective through improved finanicinig nieclianiisnis for municipal investmenits. Total cost: $600i million. § Brazil IRRD-$ 140 million. Some 50,0()0 poor faniilies in Ceara state's small towns and niediuni-sized cities will be provided vith basic municipal in- frastrLicture, and vater will be lirought to unserved localities through the const-utction of earthen daiis. Total cost: $240 million. t Btirkinia Faso IDA-$37 niillion. Primary urbaniinfrastructure networks will be rehabilitated, t-ban services directly lienefiting the poor developed, anid urban institutionial capacity strengthened. Total cost: 849.7 million.

PPR,F( I Sl 1N \R IF 1 21 Burkina Faso IDA-$1IO million. Finanice will be supplied to supplement the Second Urban Project approved in fiscal 1990.

§t Cote d'lvoire IDA-$40) million. Capital improvements, including priority works for small municipalities and low-income squatter settlements, together with municipal capacity-building measures, will be financed. Total cost: $48.7 million.

Georgia IDA-$18 million. Investments will be made so as to arrest further deterioration of, and stabilize critical municipal infrastructure in, a number of selected cities. Total cost: 19. 7 million.

§ t Guiiiea-BissanL IDA-$22 million. Rehabilitationi of transport infrastructure and urban infrastructure will create jobs for unskilled workers, improve health and sanitation conditionis, and lower transport costs. Total cost: $33.5 million. §t Indoniesia BnRD-$136 million. Inhabitants of five Kalimantan cities, especially those in poor kampungs, will directly benefit from improvements in the quality, reliability, and accessibility of urban infrastructure services. Total cost: $262 million. §t Indoinesia 1BRD-S72 5 million. A pilot test in some 1,20(0 of the poorest villages in Java wvillseek to improve living standards of about 3 million people wlhile building public works. Total cost: $83.8 million.

t Mali IDA-$](0 million. Finance will be supplied to supplement the Public Works and Capacity Building Project approved in fiscal 1992.

t Niger IDA-$1I) million. Funds will be provided to supplement the Public Works and Employment Project approved in fiscal 1991. Rulssia IBRI)-$4()t) million. The government's efforts to develop housing markets with choice for consumers and competition among private suppliers 'will be supported. Total cost: $758.7 million. t Sri Lanka IDA-S3C9 million. Municipal solid waste management and services in the Colombo area will be iniprovecd, and wastewater pollution will be reduced in two industrial areas through the construction of sewer networks. Total cost: $49 million.

t Swazilanid IBRD-$29 million. The first phase of a program aimed at increasing urban managemenit efficienicy and improving living conditionis of lowv-income urban houselholds will be supported. Total cost: $51.5 million.

WATER SUPPLYAND SEWERAGE

§ Azerbaijanl IDA-$61 million. Emergency short-term improvemenits will be made to BakuLswater-supply system, particularly in lower-income areas. Institu- tional capacity bluildinig is included. Total cost: $94.9 million. t Iidia IRRD-$275.8 million. The supply of water to Madras will be increased, and significanit improvements made in its distributioni and conservation. Total cost: $421 million. Korea, Republic of IBR[)-$75 million. Efforts to address in Pusan city and Chunbuk province environmiienital, institutionial, and technological concerns regarding wastewater and specified waste disposal will be supported. Total cost: $305.1 nmillion.

122 THE WORLD BANK ANNU Ai REPoR I 1995 t Malawi IDA-$S 7.2 millioni. Implementationi of the water r-esotui-ces-mallagemlielnt policy and strategies recenitly adopted by the governmenit, together with capacity developmenit and sector investmenits, will be financed. Total cost: $94.1 million. t Paraguay IBRD-$46.5 million The health conditions and quality of life of some 250,000 people living in the greater Asuncion area will improve through the expansion of sewerage facilities and the reductioni of sewage disposal in the Paraguay river. Total cost $72 2 million. t Pertu IBRI)-S 150 million. Water coniservationiwill be promoted, the privatization of Lima's water and sewerage utility supported, Lima's water-supply aind sewerage system rehalbilitated, and water and sanitation services to the urban poor expanded. Total cost: $306 .2 million.

§ Seinegal IDA-$1 00i million. An estimated 1.8 million people will benefit from a project that wvillincrease the productioni of safe drinking water in Dakar and increase the numnber of connectionis to the city's sewer system. Total cost: $290.1 Imiillion.

§t Sierra Leone IDA-$36 million. Water supply and sanitation services in Freetown will be improved, and the poor's accessibility to them will he increased. Total cost: $46.5 million. Trinidad and Tobago isso)-$25 million. Technical assistance will he provided to help strengthen the institutions involved in the managemenit of the country's water resources. Total cost: $33.1 million. Tullisia IRRID-558 million. Safe and accessikle water wvillhe provided to abotut 200,000) people living in rural areas, andcwater services in Greater Tunis will he rehabilitated and expanded. Total cost: $1110.9 million. Turkey ImtoL-SlO()( mzillion.Antalya's water-supply network wvillbe rehabilitated and extended, a new sewveragenetwork and a preliminary wastewater- treatment planit provided, and the stormxvater-drainage system upgraded. Total cost $244 6 million. t Zambia IDA-$33 million. Water supply and sanitation systems in nine urban areas will he rehabilitated, while community-based demonstration projects in seven peri-urban areas will provide water and access to sanitation for about 250,000 low-income people. Total cost: $46.6 million.

PROLCT SI IN!MARIES 123 Ar ivI 1' I' lS

Economic Development Institute

While much of the work of For example, a two-day work- cies. Participants included par- the World Bank Group is in- shop in Tanzania offered parlia- liamentarians, journalists, and volved in the transfer of capi- mentarians a detailed discussion government officials. tal to developing countries, of Malaysia's experience with Human resources. The EDI the Economic Development private sector development; and extended its work in grassroots Institute (EDI) focuses on the in Ukraine, the EDI held a semi- development, gender concems, transfer of knowledge. During nar on economic reform for par- and social issues. It worked with fiscal 1995, the EDI held 167 liamentarians-part of a larger governments, particularly in the conferences, seminars, and economic education campaign FSU, to help design programs to workshops in all regions of the launched by the EDI, the World support the unemployed and to world, with a particular focus Bank resident mission, and the build a sturdier social safety net. on sub-Saharan Africa and the Ukrainian government. In line with the World Bank's former Soviet Union (FSU). The EDI'S fiscal 1995 pro- larger commitment to the edu- Reflecting the diverse chal- grams were supported by the cation of girls, the institute held lenges of development, EDI publication of forty-seven workshops in Africa, Asia, and programs covered a sweep of titles. Making use of new in- Washington, D.C. aimed at con- subject areas, ranging from formation technologies, the vincing policymakers of the im- girls' education to macroeco- EDI is working with videos, portance of promoting girls' nomic management. teleconferencing, Internet education and at providing edu- Operating under a strategy connections, and CD-ROMs. The cation planners with practical of "investing in ideas and new formats give EDI programs approaches for doing so. people," EDI's expanded mis- broader reach and provide The EDI's Grassroots Man- sion is to assist countries to useful follow-up to seminars agement Training program, synthesize and adapt the and conferences. first carried out as a pilot pro- lessons of worldwide develop- rtmely ideas. In an effort to gram in Tanzania and Malawi, ment experience. The EDI in- address concerns policymakers was extended to Burkina Faso, creasingly emphasizes policy find most urgent, the ED[ India, Nigeria, and Senegal. issues in its programs, while mounted programs that re- Under this program, the EDI maintaining its historic mis- spond to economic and political trains local trainers to pass on sion of providing basic skills upheavals around the world. grassroots management prac- training in client countries. On the heels of the financial tices to poor, often illiterate Much of the skills education crisis in Mexico-with its atten- women who operate tiny occurs through training-of- dant fallout for other emerging enterprises. trainers programs, in which markets-the EDI held a global Sustaining the environment. the EDI works with partner in- conference in Washington, D.C. As awareness of environmen- stitutions to spur training ef- on how to manage economic tal challenges increases glo- forts that can be sustained in reforms amid volatile capital bally, the EDI has integrated client countries with minimal flows. EDI then designed pro- environmental perspectives support from Washington, grams for particular countries into its training programs at D.C. focusing on ways to apply les- both national and regional lev- New audiences, new for- sons drawn from the Mexican els. It held programs on envi- mats. As part of its newly de- crisis. ronmental policies in Africa, fined mission, the ED! worked Following elections in South including some targeted to with both new audiences and Africa, the EDI mounted a particular sectors. In South new formats in fiscal 1995. number of programs there, in- Asia and the Central Asian cluding an interactive work- shop on sustainable fiscal poli-

124 THE WORLD BANK ANNUAL REPORT1995 reptbliCs, the DFDICarried out prog,rams on laidil In the I 9 51s and I 960s, the Bank's work to- use, deforestitiol, and biodiversit. 'I'he insti- cLise(i on finmiancingdiscrete projects alid infra- tute has also run training activities on manaillging structuire. As developin,g CouL1triesbecame the the resettlemelit of people clisplaled hr devel- Banik's sole clienits in the I Y)7(/s, policies to alle- opment prolec-ts. viate poxvertv and pr-onmote equiity and rural de- Because niore ef'fective water managemnrent is v(elop}melnt becamlec priorities for both Bank op- a priority, the -L)i has desigied a series of naL- erationis and research. With the instabilit' of the tional, regional, and international seminars to internationial en ironmeniet and the onset of thie hielp policymiakers better- deal wxith the txvin debt crisis in the I 980s, the need for broad Perils of iclrtleased demianids for wxater anid dete- malcrloeconom0ic aCljUstenlIt aund poliCy adviCe rioratin1g water quality, became paramouint. 'Flhe Bank's lending sup- Supporting the transition to mtarkets. The FLi porte-d that aditustment, and the Bank's research is actively supportinig countries that are making prog-ram exanmined how it h.ad been donle in the tran1sitioni from1 centrally planned econormies suCCeesstfl vases and suiggested xvhat p ackages by working with policyrriakers on matters sulch of reforms x\\old be most likelk to yield desired as civil servi-e rcform, project manlagement, oi tomes. and privatization. In the I ')is miltilateral lendilig has de- The Joint Viennia Institute ( vi), cosponisored dined as a share of total capital floxx's.Private by the Bank and foui- other internitional agenl- net flows of fuinds to developing Countries haxe cies, coniduted courses thait give key officials groxx\ i from $42 billion in I 951( to an estimated the skills they necd to inmplenielit refor-ms. In $1 73 billioin in 1994. While the majority of the addition, the ix i manages f'our regional Cen- Barnk's poorer m1ember v ouwtries have received t-ers-in Kiex, Moscox, P rragueadTaslikerit- little of that Private moneiy, in many , ountrties that off'er intr-oduCtol-y c(uirses in market eco- the Banik's role is beginning to shift fir-ompri- i1oilnicsand finanicial analysis. mary' puI'eyoVr of capital to a souree of related Scholarship and Jellouwshipprograms. T'he services-inr vestmrenit guaran tees, aid coordila- World B3ank Graduate Scholarship Program, tion, techniv al assistance, anyd sectoral and sxvhich stipports gracduatt studies for mild career ni acroeconomic advice. Thy basis for this ex- officials of menmbers couintris, axvardeld 1h1 pandilg aldvisory role comiies from both the schlolarships for fiscal 1995. A special prograim findinlgs of Banki research and operational expe- fulnded by the governmeicnt of Iapan Saxv a g,ro-Up rietce. The Bank's expanding membership aliyd of twenty-five graduate xxith a mastvr's degree dClining resouIrces ftol resea-chI recqtire that in Econom1ic Policy Managemernt from Coluinl- curl-enlt stuldies focIus selectixely on the priority bia I iniversity. Classes of about thirt\ stUdenlts issues that rnov rectur- in dialogue sxith clicnt began studies at McGill Uniiversity and the t niII- Cotintlies: xversitv of ALx'er-ne unvler a program joitntly ini- * hov to sui-stainigrowvth xvhile protecting the tiated by the 1:o)ianad the Af'ricani Capacity poot- and the cnrvironmclt: Building Foundation. Also undv'r the spec-ial * howx to enrhanve the in-flow' ald inmpact of schlolarsliip program, txxverty partitipanits pur- forcigni capital flowxs, and, for somc, hoxy to deal stuecdadvanced stuidies in Jalpan througlh the sx ith a lega-y of delbt; policy-malnageenilent program at Tstikuba l ni- * boss to encotira;ge the devclopment of' the versity an.d the inifrastrlctule-limanaugelmlelnt pnro- pnrivatc sector; gram at Yokolamani National l Iniversitx * hoxx to reduLce and clentr-alize goverii- enCeltaCtiVitivsS; and Research at the World Bank * hoxyto promote the Welftare of the poor The World Bank is noxv more than fifty yveias alld proteCt the vulncrab)le in these processes. old, it has adapted to a vianging xvorld oxver Thae rcsea-ch program assists operational staff that tii'ne span, anid Bank researv'h continues to in adx isinlg on1 propos'd poliv ies, projects, and evolve to stipport the Bank's v'hangi role.og

Si, ii 'a Fix I OTHI) R \NK CGtP, 1 A( Fir\ i iii 1 2 problems in a host of developing or transitional Drawing on years of experience in advising on countries. In many African countries, for in- econiomywidepolicy reform, Bank research has stance, Bank staff find that negative rates of sav- analyzed and advised on a range of issues in ings and investmenitsince the early I 980s hlave transitionialecononmies, including fiscal decen- precluded economic growth. Researchers in the tralization, taxation, finance and bankruptcy, African and Asian regional offices are examiiin- agricultural development, lahor markets, corpo- ing how traditional lenders support rural savin,gs rate finance, and social safety nets. and investment, and how to integrate those nu- Comparing neighbors and nations. The merous informal agents wvithformal channielsto Bank's Living Standards Measurement Studies better reach the poor Loxverincomes contrib- (i.s%is)program provides some of the first com- ute to high fertility rates, which further lower prehensive information about the lives of rich parents' investment in their children's educa- and poor families in many developing countries. tion. Bank research lhasexamined w here this The data illuminate many important issues: In cycle of low education and income can most a recent study, for instance, LSNISdata show why effectively be interrutpted and has suggested targeting is necessary if subsidies are to reach policies to do so. the poor without bankruptinig governments. At The research departments provide compre- the national level, the International Compari- hensive statistical information that allows op- sons Program is being extended in Bank re- erations staff and policymakers to compare the search to account for differences in exchanige status of a country or region with other coun- rates and consumption practices wlhenicompar- tries and regions and to point out in which ar- ing incom1-esand productioll across counltries. eas national policy may be hampering develop- Dealing with aging populations. Successful ment and poverty reduction. The International development entails people having fewer chil- Economics Department (iF.() also monitors the dren, educatinig them better, and living longer. internationial economy alnd analyzes interna- But this imposes a cost-that of smaller work- tional economic linkages. In 1994, IEc staff ana- ing-age populationIs supportinig a large number lyzed economic imbalances and potential finani- of the elderly. As a result, government-backed cial volatility and, in the aftermath of the pensioniprograms are near collapse in many Mexican devaluatioll, they contributed to a re- countries. Recently completed research recom- view and monitorinigsystem that enconmpasses mends ways to predict realisticallywhat can be several developing countries to xwarnof poten- contributed by the labor force, private capital tial destabilizing trends. The department also markets, and the public treasury to balance the examined the implications of the Uruguay need for savings,insurance, and safety nets for Rounldof interniationialtrade negotiationisand the poor. predicted sutbstanitialgrovvth in trade and income for developingcouLtr-ies by the end of the The AdministrativeBudget ten-year implementation period-if all nations andWorld BankAdministration fully put in place the agreed changes. The Bank's total budget for fiscal 1995, as ap- Bank research also leads the way in examin- proved by the executive directors in fiscal 1994, ing critical new policy issues, including those was $1,420.3 million. It was subsequenitly in- dealing with transition econiomies,comparahil- creased to $1,421.6 million, wvithboard ap- ity, and pensioniprograms. proval, to accommodate the Bank's contribution The transition to a market economy. The of $1 3 million to the Task Force on Mfultilateral Bank's research staff have been involved in this Development Banks.Iate in fiscal 1995, the area since China opened up its economy in the directors approved a total budget for fiscal 1996 198(0s;since 1990, it has been heavily involved of S1,382.2 nmillion(see Appenidix6). The net with assisting countries of the former Soviet administrative budget for fiscal 1996, whicl Union in their transition to a market ecoionoy. takes into account reimbursements and fee

126 THI: WORLD BANK ANNI 'Al RFI )IT 1995 revenues that offset the costs of programns not TIhe redundancy payments are expected to be finaniced from the re_gular bu(dget shows a (.4 made bv fiscal I 998. The estiniated cost of this percent declinie in real terimis over the fiscal plan is $131 million. This is more than offset by 1 995 budget. The net administrative budgets anticipated savings of about $ 8 millioni in fiscal for the twvo-year period, fiscal 1996-97 , ar-e to 1996 and $143 millioni in fiscal 1997. To assist be reduced by appr-oximiatelv 12 percent. redundlant staff, a Job Search Center was set utp The budget ftr fiscal 1996 and the programis that provides individualized consLultatiols, it funds were designed to enhance the Bankls wvorkshops,and seminar-s on visa issues, finalicial development effectiveness by exercisinlg selec- planning, job searching, and howv to start a busi- tivitv an d greater focus on work programs, in- ness. creased emphasis on results and partnerships To furthier refine the skills mix needed to ad- \with clienits and other de\velopment agencies, dress the challenges posed by a rapidly changing and imor-e efficienit tise of resources. g10bal ecolnomly, the Bank recr-uited 186 higher- The budget provides sufficient resources to level staff of whom 29' per-cent were from ide- implement wvork programs that are consistenit veloping counitries and 38 per.cent vere women. with and derived from the development-assis- Thirty-nine of the Bank's recr-uits were selected tance strategies and policy directions appro\ed throughl the 's-oun&;Professionals Program; by the executive directors. They are based on eleven were froml developing counitries, and three key objectives: twentv \\ere wvomen. * The provision of financial assistanc-e anid D uinig fis al ear 995, the Bank beganl services to reduce poverty on a sustainable implementation of a program to help the insti- basis; tuition better nmanage chaige amid to ecigenider * the delivery of lending and other services in excellence in its bLusilless practices. Efforts fo- an increasingly cost effective, responsive, and cused on improving the business-process effi- flexible manner; andl ciencv in service units and in front line opera- * inc-eased attentionl on results in the field, tions and at reducing costs. In addition, the wvhere the Bank's actionis ultimiately matter. quality of perCsonlnlelser\vices was improved, and The reductioni in the bludgets in the next twvo a major overhaul of the Bank's traininig pro- fiscal years \\ ill be accompanied by correspond- grams xvs begun. ing reductions in staffing. Bank uniits began to Core business-redesign pilot projects are no plan f-or these changes duirinig fiscal 199)5, andl being impIIlemented throughlout the East Asia the impacts, notably on redunhdanlcies and attri- and Pacific- region and Development Ecoonomics. tion rates, were already evident by the Near s Sizable improvements in the quality and timeli- end. Regular andl fixed-term staff on board at ness of projects are expected, as well as cost the end of fiscal year 19L)5-c xclu dinsg staff on savings of as muLch is 20 percent. Recdesign special leave anid leave xvithout pay-nuLImbered projects in three other regions wvere initiated. In 6,0)59 down fr-onm6,1 85 at the end of fisc al the suppoIrt ser\ ices bLusilness-redesigin activi- 1 994. Of that number 3,983 xvere hig,her-level ties, begull in fiscal 1994, con1tilued. Cost sav- staff (4.034 at Julle 30, 1994). Somc 59) per-cenit ings of about 7 per-cenit have been realized. 'The of the higher-le\ el staff wvere fromil industri.al- redesigni of personinel serv ices focused on inm- ized counitries; 4 1 pcrcenit vere from develop- proved recruitIlment/internal staffing, more rel- ing couLitries-the same breakdo[vin as in fiscal e\ant training, faster persomimlel-tranisactioni pro- 1 994. At the end of fiscal 1 99'5, long-trIll cessing, and more effective support for front consultants iotimbered 1 112 (I 166 on iutne 30, line managers. A redcesignied personnel team 1 994). structure ewill pro\ ide higherf qualitV ad\vice to As a result of downsizing and chancgs in managers and help staff with their- careers. skills needs, some 590 staff are expected to be IMajor improvements to the management- declared reduLidanit by the end of fiscal l196(. successioni process xvere put in place, including

SL( k),\1 FL\L OTNIERB3m>s, GRO!T ACTI 1TE5 12. identifying successors for scnior positions, pro- network is scheduIled to be completed by De- viding traininlg for candidates exhibiting high cenmber 1995. It is expected to facilitatte work potential, and putting into place a mentorinig collaborationi and information exchange both program for outside recruits. A Manlagement within the Bank and with field offices, member Assessment Center was established jointly with coulitries, and others. Bankwicle technology the Internationial Monetary Flund for division standards have been established; commurnica- chiefs. Steps were taken to improve perfor- tions with field offices are being upgraded; and mance evaluation, primarily through follow--up new woorktools includinit a new electronic mail and advicc to maniagers on1individual perfor- svstem, electronic filing and documenit-maniage- manice issues. ment systems, and softvare that facilitates com- The new Headlquarters Constr-uctioni Project munlicationi among people in different locations, progressed satisfactorily, on schedule and within are being examined. budget. The approved S3 14 million budget includes partial upgrading of tvo existino buildings. International Finance Corporation (IFC) A mediulIl-terimi strategy for headqualrters of- The Ir( registered another record year in fis- fice space, designed to reduce leased space, was cal 1 995, maintaining the pattern of expansioni completed. Office space \vas placed on established over the past decade. Over the past chargeback during the year to encoutragemore foLur years, total financing for IFru'S OWIn account efficient use of space, newvspace-design options increased by an annual average of 16 perceit. were tested, and a numiber of interinal services This steady rate of growth reflects the strong were redesigned (printinig and procur-emenit, for demand for its finanicinig and services broughlt example, with similar work in progress for oth- on by the expansion in private sector- econiomic ers). Processes have been streamlined, customiier activities in manly member countries. Sectors of focus improved, managemient overhead re- particular growth and strenigth for the IrF dur- duced, and costs reduced by $3 million yearly; ing fiscal 1995 included infrastructure (poxver, office supplies and space lease-advisory ftuic- telecommunicatiois, and transport), capital tions were outsourced; contracted-out services markets development and privatization xvork. were increased and management of conitracts Finalicing approved for the IFm's OWInaccount tightened; a new Corporate Card progranm is ex- was $2.9 billion for 212 projects, compared pected to save SI million over three years; anid vith almnost 52.5 billion for 231 projects in fis- negotiations with airlines, hotels, and the Bank's cal 1994. It was also a record year for the Irc's travel contractor have led to cost-avoidance of resource-mobilization activities $2.6 billion in about $9 million annually finanicinigwas approved through loan syndica- The Health Services Department (HSD) tions and the underwriting of securities issues launched a comprehensive Breast Care Program and investment fuids. Projects approved by the to increase early detection of breast cancers anid cFchad total investmenit costs of $18.9 billion, reduce medical costs: More than 900 staff have meaning other investors and lenders provided a participated. An on-site clinic was opened to total of $5.56 for every dollar approved by the help staff members with episodic, acute ill- IC. Projects were approved in sixty-seven coun- nesses and provide referrals to a specialist. lJtili- tries, comparecl withi sixty-five countries in fis- zationi of the clinic is high ancl is expected to re- cal 1994. In addition, a number of projects duce meldical insuranice costs Negotiation of wvereregional or international in scope. preferred rates at local hospitals is expected to In July 1994, the 'F(-'sboard of directors ap- reduce insurance costs by $600,000. proved a new policy onidisclosure of informa- The Bank is working to harness techlnology to tion for the cor-poration. Like the Bank's policyv improve efficienicy and support its role as a that of the IF(-seeks to ensure that its activities leadinig source of dev elopment inforrmation. In- are undertaken with transparency anid account- stallation of a Bankwicde 'Enterprise" electronic ability. The funidamenital principle of the policy is a presumptioni of disclosuLrIewhere disclosure

12 S TI F WORII BANK ANNI :AI Rk,1 i,RI 9195 would not materialls harill the busilness ancl and comimlitmient tees ($ 14.4 million \ersus competitive interests of clients. $9.9 iTiillioll). In alddition, S1I .5 has set\en coiln- The iri 's ] 995 finaincial perFormiance \as mlitimienitletter-s outstalldilno wvith S210r million mor-e in line with historic levels after ha\ing in potential coverage, which also surpassed the achiesed a record level in fiscal 1 994. Fiscal fiXv Commlitmelnt lettel-S for potelItial maximIIum 1995 net ilcomlie wxas$ 18S million, reflecting cv-oerage of SI 67 iillioni outsta,nding at the enid low'er equity sales andl capital gains diLueto the of fist al I 994. weakness and uncertain conditions in most The contraicts issueld in fiscal 1 9)9 fac-ilitated emerging markets iii the secondi half of the Fis- total dirert investmenlt of about $2.5 billion andl cal year. 't'he Fe earned a retuLr-nof 5.5 per-cent created an estimated 8,8()() jobs in deselopinlg onl its net \vorth, which reacIed $3.6 billion at memlIber countlies. S1I A issued, for the Fir-st Julle 3(1, 1995. New comImIi-Iitmentssigned Lir- time, signifitcantaninomunts of coverage ($142 ing the year totaled $2.4 billion, p tupromSI$1 .8 million') For inlFlrstRuCtuleinvestnients, incldLl- billion in fiscal 1994. Disbursemients xttre also ing its first power andcltoll road plr-ojects. up, to $1 _8 billion, anLdthe ii- 's total dishursed Other milestones reached in fiscal 199)5xere: portfolio reachled 7.3 billion as of June 30, * sits-\ signedl its 1 55th Contract of guarLalntee; 1 995. The corporation borrowed $2.4 billion in * these contracts 'facilitatedan estimated the interinationial markets and 845 mirilion from 8.l bbillion in total foreignl privalte investillent; the IIRI. The Irk issued bonds in ten Currencies. * the outstaridin-g ma xi\unin contingent In fiscal 19)9', the corporation's memblership liability exceeded 8$1 i bdillion; increased to 165`couintries with the additionis of * N1i(tA issueAd its first gua-irantees in Costa Armenia, GCeorgia,Moldova, and Tajikistan . Rica, Ec uadLC ,I loHnlduras,M\lorocco, the Details of the .I 's fiscal year can be found in Philippines, the Slovak RepLublic,Soutil AF'rica. its Anniual Report, published separately.\e Vnezuela, and Viet Nam; and Si* A receiVSd its 2 251 th prelimiinary ap- Multilateral Investment Guarantee plicatioll for coverage. Agency (MIGA) Techntical assistan2ce activities. sin .\t offers

During fiscal 199)5,ti (,A's board of directors technical assistanIce to help dvl\elonpinIg nun-0. colIcurred with the president's lecision on tries promiote private investmient opportunlities forty-six ilsUtirance projects con-1Veyl to it. niore effectively. It does this througIl dlirect sup- Sinice sium\'s inception, the board has consid- ptirt of in estillent-pronlotioll acti\ itics; dis- ered 1 I projects. tlt(;\'s net incomile before senlillatioln of inFlormatioll on insestriment oppor- provisioning inicreaLsecd140 percernt to 81 2.8 tuilities; and capacit\ btuilding of investmieilt- millioni in fiscal 1995i. promiotion agencies (l\s). The underlying focis Seven additional countries be CamIe m1embI1e'rs of these serv itces is the introclttion of nes of 'the agency in fiscal 1995, in(reaSin-g the 11-11anagemleliCIt anld mnarketing tec-inicities to help inai timbe-of si(;;A membIIer couLntries to I28. 1\1A dkevelopilng Imemilberstates malximlilze the effec- additional tdxent-our developing countries and tineness of 'their prog-rams in attracting foreign economiies in transition are in the process of fLIl- direct insestlcrt. fillinig mnemibe,rship requirem-eints; Svi :\ has 1 52 n; s's investment-promotion assistance ill- signatories to its Coniention, solves organIIi/ationl of ilnVestmenlt confelenlces, Guarantee program. In tiscal 1995, sii' 's prelparatory exeCutive trainiing programils. strat- gutaranltee-programii results exceededd fiscal 1994 egx\ storkshops, and Follo\%-up investmelint- reccor.ds for the num1ihberof guarantee contracts promotioll nmissions. Wherever possible, \lit, exectuted (fifty-four verstis thirty-eigit), total seeks to support a-ti\ itiecs on a sector-al and amnount ofIcos\erage issued ($6 77 million \ersusI multicotintr' basis. T\\o miiajor conferlenes of 8372.61 mhillioni), iiLnmber-ol dleveloping cooIn- this nature sse' or-ganized cluring fiscal 19)9)5- trics benefitcd (twenrty-one \erstus fourteen) and amilotunt of illncoIle earnled Fromilprl-eliumt rils

Sit i(I ILIN FI I01Hl P i. (4:NGk A' A,t H ITII' for the tourism sector in the Middle East anid Convenition by Argentinia, Bolivia, Mozambique, the mining sector in sub-Saliarani Afi-ica. The Nicaragua, Spain, anidVenezuela. As of lune 30, latter, held in Toronto, Canada, followed a simi- 199'5, 1 19 countries had become members of lar, highlv successful coniference conivenied by i SILo.An additional fifteen countries had signed Nii;A in fiscal 199)4. but not vet ratified the Convention. During fiscal 1995, NiC(iAorganized several ac- During the year, two new requests for arbitra- tivities to prom-ote investmient between devel- tion were registered. As of June 30, 1995, five opinig cotintries, which included investment cases were pending before the centre. missions fronmAfrica and South America to ICSID's p ublications include a semiannual law Southeast Asia. journial, "ICSID Review-Foreign Investment MIlC.A is pioneertin1gthe use of new marnketing LaxvJournal," and multivolume collections of and commnuniicationistechniiologies as vehicles Jur'estment Laws of the l'borldland Investnient for inforimiationidissenminationi on investmenit Treaties. Two issues of the law journal and three opportuLnities in developinig countr-ies. This in- releases of the investmenit laws and treaties col- cludes the developmient of (:D-ROMs On invest- lectionis were published in fiscal 1 995. ment opportunities in specific regions and sec- Details of r(esin)'sactivities during fiscal year tors. .\IiA also mrade considerable progress in 1995 appear in its Annual Report, wlhich is developing a global electronic information ex- publislhed separately change and commurnications network on invest- nielt OppOrtullitiCS (II'A ulet), to be carried over the lnternet. This network will link jiI\s,business associations, financial institutions, and other inter-milediariesinvolved in the promotion or facilitationi of foreign investment and will become operational during fiscal 19966.sirA iS also spearheading the dlevelopmenit of joint programns for II'AS throu0h a global association. Details about \IRG;A'S activities in fiscal 1995 appear in its Aninual Report, published separately.

International Centre for Settlement of Investment Disputes The Interinationial Centr-e for Settlement of lnvestnmenit Disputes (i( sic) is a separate internationial organization established tinder the Convention on the Settlemenit of Investment Disputes betwveen States and Nationals of Other States (the Convention), which was opened for sionature in 1 965 and entcred into force the following ycar. kJSI[) seeks to encourage greater flowvsof internationial investmient by providing. facilities for the conciliation and arbitration of disputes between governments and foreign investors. In addition, W(SIL) ulndertakes advisory, researchi, anid publications activities in the area of foreign in- vestimlenlt law. During fiscal 1995, I(SID'S imnemi-bership continlued to grow with the ratificationi of the

13() 'TIIuL W(I I)\BANKIANNM RiRi )oRT105 SECTPl'[)N S%1,X %V () 1l.I, 1-,. \ .- I'.'X,'

IBRD Financial Highlights loans to VLR 1989 loans. The been offered under a two-year, VLR 1982 loan terms were $3 billion pilot program. In the fiscal year ending based on all IBRD funding. The Under the pilot program, June 30, 1995, the IBRD VLR 1989 loan terms allocate only "eligible" borrowers were achieved solid financial results, specific funding to the Bank's permitted to choose the cur- of which highlights included: currency-pool products. The rency-United States dollars, * disbursements to coun- purpose is to facilitate interest deutsche mark, yen, pounds tries of $12.7 billion; risk management by the IBRD sterling, or French francs-in * medium- and long-term and to enhance its ability to which their loans were de- borrowing the equivalent of offer borrowers new loan nominated. To be eligible, a $9.0 billion in seven curren- products. Two actions are be- borrower (or subborrower) cies, four after swaps; and ing taken to promote loan had to be an autonomous en- * net income of $1,354 conversions: tity with revenues in the same million, well within the range * A one-time, 10 basis currency as the loan. that satisfies the IBRD's finan- point waiver of annual interest With the expanded pro- cial objectives. charges spread over two inter- gram, this eligibility criterion In the first quarter of fiscal est periods for loans that are was dropped; now, govern- 1995, net income earned dur- converted is being credited to ments can also borrow in a ing fiscal 1994 was allocated each borrower that converts single currency. In addition, as follows: all of its VLR 1982 loans to VLR the prospective currency op- * $285 million to the gen- 1989 loan terms (borrowers tions were expanded to in- eral reserve, which was in- that had previously done so clude any currency or com- tended to maintain the [BRD'S will also receive this waiver). posite currency for which reserves-to-loan ratio at the * When the executive di- ' there is sufficient borrower end of fiscal 1995 at 13.85 rectors consider future annual demand and in which the IBRD percent, excluding amounts interest waivers for eligible can efficiently borrow from allocated for prefunding of in- borrowers, the IBRD will adjust the market. A fixed rate terest waivers; any such waivers for VLR 1982 single-currency loan option * $220 million to the gen- loans whenever the VLR 1982 was also agreed to; under the eral reserve for prefunding of loan rate is below the VLR pilot scheme, only a floating interest waivers to be granted 1989 loan rate in order to rate single currency loan in fiscal 1995; equalize the two. was offered. The IBRD, there- * $300 million to IDA; and At the end of fiscal 1995, fore, now provides three stan- * $246 million to surplus. conversions following this ini- dard lending instruments to In the second quarter of fiscal tiative amounted to $28,470 countries: 1995, the board of governors million, or approximately 73 * a floating rate single cur- approved a grant of $20 million percent of the unconverted rency loan tied to the six- out of surplus for emergency as- volume outstanding at month LIBOR rate of the cho- sistance to Rwanda. December 31, 1994. sen currency; Single currency loan pilot * a fixed rate single cur- Financial Policies program reviewed. In May rency loan tied to the fixed Conversion from 1982 loan 1995, the executive directors rate equivalent of six-month terms to 1989 loan terms. In of the Bank approved a pro- LIBOR in each loan currency; December 1994, the execu- posal that, effective immedi- and tive directors approved a pro- ately, provides all IBRD borrow- * the previous standard, a posal to encourage the IBRD'S ers the option of choosing the variable rate currency-pool borrowers to convert the vari- currency in which their loans loan, whose lending rate is cal- able lending rate (VLR) 1982 are denominated. Prior to this, culated each semester on the a choice of currencies had

SECTION SIX WORLD BANK FINANCES 131 IBRO'S cost of outstanding borrowings that are Lending rate. Under VlR I 989, the interest funding these loais, I-atewas 7.10 percenlt for the first semester and The directors agreed to impose a cap on the 7.09 percent for the second semester of fiscal amoun1t of single cL-rcncv loans a borrowillg 1995. By comparison, the interest rates for VIPR couinitry could unidertaLke:50 percent of a 1982 were 7.1 1 percenit and 7.13 percent for couLitry s aninual lending program, or Si Of) mil- the first and second semesters, respectivelv, of lion, whichever is higher. The management of fiscal 1995. the Banlk will brinig the issue of the lendinig capl The single curr-encylendinig rate in Uniited back to the executive board for fuLrtherdiscus- States dollars (the only currency with outstanid- sion within a year s time, with the intentioni of ing loans) applicable in the seconid semester of phasilig it out progressively or removing it en- 1995 was (6.98 percent. This rate was based on tirely when circuLimstaniceswarrant. the [BRD'S cost of L[BOR-basedfundinig in that It was also agreed that eligibility for the new curreicy. program requir-ed that memiiber governments Interest u'aivers. Durinig fiscal 199'5 the IBRO (and individual borrowers, if applicable), must continued to wvaive25 basis points of the se- have converted all their outstandin" loans undcer mester interest rate on loans to all borrowers \'[.R 1982 to VIR 1989. that had made all loan-service payments within Directors affirmied that the future (lesign of thirty days of their due date. (Approximately sinigle currency loan products should conisider 86 percent of the IBRD'S total volume of out- variations on the fixed rate option. They also standing loans is ctirrenitly eligible for the inter- emphasized the importanice of adequate staff est-spread waiver.) This waiver was in addition trainin1g to ensure that the Bank's lendinig prod- to the continiuation during the year of a waiver ucts are offered to borrowers in such a wvaythat of part of the IBRD'S commitmenit fee on borroxvers can make infor-med choices to reduce tindisbursed balances that resulted in a reduc- their risks. tion of that fee from 75 to 25 basis points. As of Juine 30, 1995, $3,775 million of single Loans in nonaccrual status. At the end of fis- curr-enicyloans hacd been approved, inclulding cal 1995, five member countries (Iraq, L.iberia, S1,507 millioni uLider the expandecl pr-ograml. Sudan, Syria, and Zaire), as wvellas two succes- Accumulated provisions for loan losses. The sor republics of the former Socialist Federal Re- level of loan-loss provision is based on an assess- public of Yugoslavia (the Federal Republic of ment of the collectibility of loans in nonaccrual Yugoslavia (Serbia and Montenegro) and status, togethier with an evaluation of Bosnia-Herzegovina) were in nonaccrual status. collectibility risks in the remainder of the port- Loans in noniaccrual accounted for 2.1 percenit folio. For fiscal year 199-5, loan-loss provisions of the total IBRI) portfolio at the end of fiscal were maintained at a level equal to 3 percent of I 95 total loans disbuL-sed and outstanding plus the present value of callablc guarantees for an Liquid Assets Management amouLnt equivalent to $3,74(0 million at the end At the end of fiscal 1995, the IsRDns liquidity of the fiscal year. totaled $18.4 billion (of xvhich SI .2 billion was segregated as 'lheld-to-imaturity'), equivalenit to Loans about 46 percent of anticipated net cash re- Disbursements. Gross disbursements by the quiremeints over the next three fiscal years. At IRR) to coun1tries during fiscal 1995 w,,ere the end of fiscal 1 994, liquidity amotunited to S126 726million, up $2,225 million from fiscal $1 9.2 billion. The saRD'Sprimary objective in 199)4's total of $1(1,447 million. Net clisblurse- holclilig such liquidity is to ensure flexibility in ments, cxcluding prepayments, to current hor- the timing of its borrowvingsshotild borroxving

rowers wer-e $2_238 millioni, an increase of ability be adversely affectedby temporary con- $1 275 million over the previous year's total of clitions in the capital markets. $963 milillionl.

132 Tiir W)RIL) BANK ANN:\II\ R Ri)i1 19c5 The iaRD'S liquid assets are invested exclu- other things, cLurrencyswaps to obtaini cost sav- sively in fixed-income markiets and are actively ings compared witlh the cost of direct borrow- traded with the exceptioni of the British pound ings in target currenicies; structured financingis holdings, wvhich have been matchecd to the du- converted to conventional liabilities usinLgover- ration of underlying liahilities. This portfolio is the-counter financial derivatives; the use of classified as held-to-maturity. Portfolio-manage- short-term and variable rate instruntmenits;and ment activities are fully supported by compre- prepaymelnts or market repurchases of borrow- hensive risk-managenmenit and monitorilng piro- ings, whiclh, hy varying margins, exceed the cedures covering both cr-edit risk and costs of refinancing. interest-rate risk. Trading performance of ac- Medium-term and long-term (AILM)funding. tively managed portfolios is measured daily During fiscal year 1995, the I1KROraised $9.0 bil- against detailed benchmark portfolios, lion through \i v horrowvings in seven currenicies Continued enhancements in the managemlenit (see 7itble 6-C1).After $1.0 billion of curr-enicy of the ieRr)osliquid assets included integration of swaps and a notional par volume of S782 mil- computer systems across trading, accountinig, lion of inter-est-rate swaps, all of the year's bor- and conitrol ftunictions; and improvenmenits in rowings, except for $21(6 millioni raised in performance-measurement and risk-moniitorinig United States dollars to fut'nd single currency svstems. loans and minior residuals in vehicle Currenicies, During fiscal 1995, the iBan's financial return xwere fixed rate liabilities denominated in on its portfolio *vas 5.71 percenit, including one United States dollars, yen, deutsche maLrk,and synthetic instrument. The financial returni on Swvissfrancs. The average maturity of all this investments in fiscal 1994 was 3.56 percent. ftunding, including the \Iul ftunidingheld at float- The portfolio continiues to be managed in rela- ing rates, wvas 7.4 years, and the after-swap cost tion to a benchmark strategy of one-year dul-a- wvas6.32 rpercent(see Table 6-2). tion except for the held-to-maturity portfolio, Noteworthy among the transactionis in the whose average duration xvassix years as ot aRn'score cur-reniciesduring the past year was JuLne 30(, 1995. the reopeninag of the iiRLa'ssecon1d deutsclhe mark global bond, which marked the first time Borrowings and Liability Management the IcRa had reopened one of its glohal bonids The obiectives of the iR[)'s borroxving and li- since the product's inceptioni in 1989. The ini- ability-maniagenienit strategy are to ensure the tial size of the second deutsclhe mar-k global long-term availability of ftunidsto the cBaI)for bond issue was DM2 billion, and the reopening, lending and liquidity and to minimize the costs wvhichuvas launched to enhance the liquidity of of funds for the IBRD and its borroxvers. The IBRL) the issue, added DM5NC)0million to the size of seeks to ensure the availability of ftunds by de- the borrowing. Also notewvorthy w'as anl ininlova- veloping borrowiing capacity in markets in ad- tive featuL-e introduced with the cBRD'Sthird vance of need and bv diversifying its borrowinos deutsche mark global hond, a market-based ar- bv currency, country, sour-ce, and maturity to rangement to facilitate the use of these bonds provide maximum flexibility in fuidiig. It also for repurchase (repo) transactions. 'o achieve seeks to strengthen the continuing appeal of its this objective, a core group of- underwriters securities by offering features that are tailored for this issue agreed to beconme market maker-s to satisfy investors' asset preferences and by po- in the repo market for these bonds and to post sitioning its securities advantageously in eaclh repo rates on electroniic sc-eens accessible to capital market (for example, from a regulatory- other market participants. This was the first tax and investment-classification perspective), time such a commitmenit had been made for Within the frameivworkof the cuL-rencyt,om- suclh securities in the deutsche mark repo position of borrowings required to ftund its market. lending products, the IRRD seeks to miliiniize the cost of borroxved funds by using, among

SrF Til )N SIR W lI' l BN\\,KFi\ v\\(r 133 TABLE 6-1. IBRD BORROWINGS, FISCAL YEAR 1995 (amounts in millions)

Currency US dollar Type Issue of issue equivalent

Mvedium- and long-tern public offerings Global 7.125% five-year bonds, due 1999 US$ 1,500 1,492.1 7.25% five-year bonds, due 1999 DM 2,500 1,617.6 4.75% ten-year bonds, due 2004 v 200,000 2,045.8 7.125% ten-year bonds, due 2005 DM 3,000 2,169.9 Eurobond market 10.1250/%three-year notes, due 1998 $A 100 78.4 10.625% three-year bonds, due 1997 L-it 300,000 197.7 11% three-year bonds, due 1998 Lit 250,000 150.6 Zero-coupon note, due 1996 Lit 200,000 106.5 4.5% five-year notes, due 1999 US$ 200 184.0 10.625% three-year bonds, due 1998 Lit 500,000 307.0 Germany Zero-coupon note, due 2024 DM 500 36.1 Luxembourg 8.125% ten-year bonds, due 2004 Lux F 2,000 66.8 Switzerland 5.5% five-year bonds, due 1999 Sw F 200 159.0 5.375% six-year bonds, due 2000 Sw F 200 157.3 5.375% five-year bonds, due 2000 Sw F 200 159.3

Total medium- and long-term public offerings 8,928.1

Medium- and lonig-ternmprivate placemnents Germany Zero-coupon note, due 2025 DM 400 31.4 Zero-coupon note, due 2025 DM 300 25.3 United States 2.51% five-year notes, due 1999 US$ 50 41.5

Total medium- and long-term private placements 98.2

Total medium- and long-term borrowings, fiscal 1995 9,026.3

Short-term borrowings outstanding b Central bank facility c US$ 2,599.8 2,599.8 Discount notes US$ 1,211.8 1,211.8 Othersd

US$ 20 20.0 Lite 138,000 84.9

Short-term borrowings outstanding 3,916.5

a. Mledium- and long-termborrowing amounts based on grossproceeds, expressed at exchangerates prevailing at the time of launch. b. Maturing within one year; short-ternr borrowings are shown at face value. c. These issues were placed with central banks, government agencies, and international organizations. d. Exectuted under the IBRD'SGlobal Multicurrency Note Program. e. Swapped into deutsche mark.

1 4 IHHr )R[LB13.\NIK ANNt \i. R[:IrIPT 1995`; TABLE 6-2. IBRD BORROWINGS, AFTER SWAPS, FISCAL YEAR 1995 (amountsin millionsof usdollars equivalent)

Before swaps Currency After swaps Maturity swaps Maturity Cost ftem Amount % (years) (amount) Amount % (years) (,,lo)

Medium-and long-term borrowings U.S. dollars 1,717.6 19 5.0 216.4 1,934.0 21 4.8 7.30 Japaneseyen 2,045.8 23 10.0 77.2 2,123.0 24 9.7 4.46 Deutsche mark 3,880.3 43 8.4 598.5 4,478.8 50 7.7 6.92 Swissfrancs 475.6 5 5.3 0.0 475.6 5 5.3 5.27 Othersa 907.0 10 3.3 (892.1) 14.9 0 3.4 10.42 Total 9,026.3 100 7.4 9,026.3 100 7.4 6.32b Short-tennborrowings outstanding Centralbank facility (U.S.dollars) 2,599.8 66 0.5 5.81 Discountnotes (U.S.dollars) 1,211.8 31 0.3 5.96 Otherc U.S.dollars 20.0 1 0.6 7.01 Italian lire, swappedinto deutsche mark 84.9 2 0.7 4.92 Totald 3,916.5 100 0.4 5.85

NOTE: Details may not add to totals because of rounding. a. Represents borrowings in Australian dollars, Italian lire, and Luxembourg francs. b. Excludes the cost of $216 million of single currency loan finding held at floating rates. c. Executed under the IBRD's Global Multicurrency Note Program. d. Short-term borrowings outstanding on June 30, 1994, totaled $3,311 million; short-term borrowings are shown atface value.

During the past fiscal year,the IBRD prepaid billionbefore and after swaps.These comprised an aggregate volume of $721 million of borrow- $2.6 billion from official soLircesthrough the ings, including borrowings in yen, Swiss francs, ILRD'S c-entral banik facility, $1.2 hillion from and Frenchfrancs. In addition,it redeemed$60 marketfuntding in lUnitedStates dollar notes,and millionof United Statesdollar and yen borrow- $0.1 billionfrom global multicurrency notes. The ingsthrotigh market repurchases. cost of these borrowingswas 5.85 percenitcomn- At the end of the fiscal vear,Nit-i fundinig out- pared with 4.94 percentat the end of fiscal1994. standingamounted to $104.5 billion,or 96 per- On June 30, 1995, short-termand variable cent ($107.8 billion,or 97 percent after swaps) rate fundingaggregated $4.3 billionequivalent, of total debt outstanding.As of June 30, 199,% representinigabout 3 percent of total outstand- the averagematurity of total NiLT debt was 5.6 ing debt. years,and its averagecost, after swaps,was 6.3 perceint. Capital Short-termfunding. As of June 30, 1995, On1June 30, 1995, the total sulbscribedcapi- short-term borrowingsoutstaniding were 83.9 tal of the isBRwas $176.4 billioni,or 9i)6percenit

SRI e1)NSiX WQ)RIL) BANK FIN\At( Frs 135 of author-ized capital of $184 billion During fis- are "replenished" by an agreemilent amnongdo- cal veair 199', subscriptionis to the S74.S billion nors every three years. Fiscal year 1995 was the g,eneral capital increase (c;cI), approved in April seconid year of the tenth replenishment of IJA 1988, conitiniued on schedule. Twenty cotintries (IDA-II), the agreed size of which was SDR13 subscribed an aggregate $(.4 billion. A total of billion. i,m's commitment authority is based on 51,754 CGCIsh-res (S(6.2 billion, or 8 percenit of these donor- contributionis, which are madt total allocations, including additionial uCI shiares available in three aninual traiichies, and other re- allocated to new members that joined the IBRL) sources available to IDA (mailily repaymenlts after April 1988) remain to be stubscribed. At from past credits and net incomie tranisfers from the end of fiscal ] 993, the permissible increase the MDR). of net disbhirsements ( headroomn") was $75.3 As of June 3(0, 1995, the donor funds made billion, or 38 percent of the irRD's lending limit, available for the IDA-i0period (fiscal 1994-96) Reserves. On Jun1e30, 1995, reserves totaled SDR7,)642 million. Durinig fiscal 1995, amounited to $17 2 billion, and the reserves- the associationi received formal notifications to to-loan ratio stood ait 14.3 percent. contribute to o\-o from Belgium, Portugal, and Spain, which increased commitment au- IDA Finances thority by SDR208 million. Part of the seconid In October 1994, the executive directors dis- tranche of InA-1i)contributions is not yet avail- cussed a report on the use of resoutrces durinii able, as the Unitecl States' payment to [DA-I0 the first year of IDA-r (fiscal year 1994), took was about 8 percenit less than the agreed sched- note of it, and encouraged a caLnAdidlook in the tile, and txvo other donor-s (Germiany and ftuture at implementation and designi problenis Caiada) exercised their right to withilold their and at establishlinigfirmer- linikages between coontributions proportion atelv to the shortfall in IDA programis anid resuLts on1the grounid (see the United States' payment. Box 6- ). Othler resouirces made available during the IDA'S commitmnenit authoritwy. IDA iS mainily year included the transfer of SDR207 million funided by d*onor contr-ibutions, and sutch funCIs from the IBRD'Sfiscal 1994 net inconie and

BOX 6-1. REVIEW OF THE FISCAL 1994 IDA PROGRAM

The review covered IDA's efforts duringfiscal 1994 eral countries. A partially offsettingfactor was the in the three major areas defined by donors: iDA'S ex- policy breakthrough achieved by the countries of the perience and progress in poverty reduction, its efforts CFA zone, which, in January 1994 decided to change to stimulate sustainable growth through improve- the parity of the CFA franc vis-a-vis the French franc. ments in the quality and level of investment in IDA In the first six months of 1994, iDA provided ap- countries, and IDA's enhanced activities on environ- proximately $1 billion in quick-disbursing credits mental sustainability. The pervading influence of and adjustment operations to these countries. these priorities was demonstrated by the fact that 80 The $5.5 billion in disbursements duringfiscal percent of the fiscal 1994 lending operations directly 1994 was also the highest ever for IDA-reflecting addressed at least one of these objectives, while most better portfolio management and an increase in ad- addressed more than one. The remainder addressed justment lending. Adjustment operations remained specific country priorities considered essential for within guidelines, and most had a poverty focus. growth. To build on progress in developing country-specific The $6.6 billion in commitments during fiscal strategies,further emphasis is being given to incorpo- 1994 was the highest annual lending ever achieved rating results from poverty assessments, national en- by IDA. Commitments fell short of expectations, how- vironmental action programs, and other countrv-spe- ever, because civil strife or inadequate progress in the cific analytical work into IDA operations. adoption of policy reforms curtailed lending in sev-

13) THIL W)RI IBBANM ANNAI [ R PO)RI I5 SDR93 1 million of commitmenit authiority against current and ftutire repayments from past credits. Of the latter amotint, SDR80() million is for ordiniar-ycredits and another SDR 131 million is for the Fifth Dimension program. Therefore, the total available resouL-ces for the IDA-Il period increased to SDR 10,303 mlillioniin fiscal 1995. Against these resources, the association made IDxA-mcommitments of SDR3,829 million during fiscal 195. Of this amount, 39) percenit went to Africa, 25 percenit to South Asia, 19 percenit to East Asia and Pacific, 10 percent to Europe and Central Asia, 6 percenit to Latin America and the Caribbean, and I percenit to tht Middle East and North Africa. ID.4'S commitment fee. For each fiscal year, the level of commitmenit fee is set hy the executive directors hased on an annual review of ILA'S finanicial position. The commnitment fee for fiscal 1996 was set at 0 percenit for all ID\ credits. IDA'S conimitment fee had heen 0 percent from fiscal vyear1989 through fiscal 1995.

S (TI, 'N SI\ V)Pi' DIA.\NK FIN \NCFS' 137

FIN A\N CIA I STATE MI 1 NTS OF TI-I r INTERNAT'IIONAAl BANK FOR RECONSTRUCTION AND DE\Lv. oi MENT

Balance Sheet 140

Statement of Income 142

Statement of Changes in Retained Earnintgs 142

Statement of Changes in Cumulative Translation Adjustment 142

Statement of Cash Flows 143

Summary Statement of Loans 144

Surnmary Statemenet of Borrowings 147

Statement of Subscriptions to Capital Stock and Voting Power 150

Notes to Financial Statemnents 154

Report of Independent Accountants 165

I BRRDFIN,AN I\1 SI'A.\ I. I\ N` 1] 1 BALANCE SHEET IHtw'.'(), 1J'5> ,u, 1HI 30,/1)h!4 Expw).'S'wdbi, m,illimi,,, ,,1 U.S .l,l,-

M15 1994 Assets Due from Banks I JnIrestrictedptILlIII t S$ S4 2)61( C(jrireiciies subj,et to ('stnp titris Note A 549) 544

Investmnents-Notes C anzd D

21,1 3) 21 't

Securities Purchased Uinder Resale Agreements 2 467 Nonnegotiable, Noninterest-bearing Demand Obligations on Accounit of Subtscribed Capital (subject to restrictions-Note A) I1)I) I5J7 Amounts Receivable to Aiaintain Ihue of Currency Holdings-Note A 106 1 133

Other Receivables Aniaotints lt'eeable (tr-onicurrecy sxvl rs--Nots(sC anid 1) 16i, 5 1S,222 A 10otio ts re(cti lih Ironi i\t'stilt'ct scti-iti 's sold I1, 2,3%'32i2 Anotmlits recei\vlle, fin (t Tcoverdforar-ds Notes (: iidsd 1,3I1) 1,50)3 Accruedioctino ('ontll l s ''S 2 21)4 Acrcrued i te rrest till imi \ et,li its Is0)6 22i(j0 l 74,f) 14

Loans Outstanding (see Sutnmary Statenmentof Loans, Notes B and C) 'lOttal IoLs 1 '"7) 4-' 164, )1) I ess lnlJs 1a)IrO\tt I htbut n(It vet eftecti t,X7IV 1)81 , 34'

l.ess cI`diSbIt.s(ed 1ba,Ila1i( it ef l'ctict' 1Jt'Is 4 *,' 21 43,i6ti0

I ,oaiis itt st i" ding 1 41)1.L2 1 ) lt)2 IeSS aIct LITIlaLtL'dpIrIsI o\ iorl t111 Iotssesc 41) ,3 14 1,ttiiis ttitstulldilld let (It ICC1-uiii.latedpt Isisi-to\ o1.)-loi ItIhi 5

Other Assets l mimiorta Seci is stdtliler'tc os ts oI h .roxoiogTsT 48i 404 l isAcellaetucis 1,25 1 1,245 1-744 I, 3") Total assets $1 68,6'I X5 I 3

140( TH \'VW RI.v) BA\>CKANN)II R )4t I I' l 19)95 M5 M964 Liabilities Borrowings (see SumnyzuaryStatement of Borrowings, Notes C and D) Sblort-ter-I S 3. 8 8) 3.304 I\1dil-dium- nId long-ttc III 1(4,507 95.61S

Securities Solil IT znderAgreements to Repurchase an d Payable For Cash Collateral Received 2.567 1.927

Amounts Payable to MalaintainI alue of Currenc-y Holdings-Note A 24 6

Other Liabilities Amountspabl foriti unvlvC Notes (I aldns.trp 1) IL).085) 2(1 ,A\mIonLIlt S ) b le 1.o,In I stment sC"t .i ti lh I- 1basedt'.'1 .38l 1 A mIounLItsp',aVIble for COvrd'L'd tor a-rds Note. ( .Li L) 1'3()6 1.484 ACCerued char,esR 4 nnros ho in1t.s, 2.857 2.725 Parable ito Boaird-appri'red transfelr-No)te 1. 135 1.20(4 Aicotilts 1arle and misiel.laneos liabILilities 72 579 27.2 37 29,7(0S Total liahilities I18.33 130(,557

Equ itv Capital Stock (see Statement o/'Subscriptions to Capital Stock. and lbtintg Power, Note A) Authoriied (.apit.l (1,52'5,248Shares ( 31)1'ne)I .1and 1 )l30, 1'()4) Subscribedcapital (1,462,574 shares-June 30, 10)'); 1,40),235 shares ltine 1m), I L)04) 170.438 17(0.(0)() 1 ucalledn.ess portion( of siubsi 11ip11on I 6 S.5 8 1)S9.338 10.858 (1.6~65

Deferred Amounts to Maintain Vlalueof Currency Holdings-Note A 77(0 33

Paymenets on Account of Pendling Subscriptions-Note A . 87

Retainied Earnings (see Statement of Chantges in Retainted Earnings, Note F) I s.5 )2 14.468 Cumulative Translationt AdIjustmnenrt(see Statement of Changes in Cumnulatire Translation Adjustmeett) . 30() 1.394 Total equiity 301.401 '2.61)46

Total liabilities and equihS 108.614*157 503

Tue Notes lo Finumcial Statements ore az integral patl o/thzese Statejucerts.

IBRD FINANCIA1\SATLII.NAToN 141 STATEMNIENT OF INCOME 1 For tie hscul ve(irs uncet I Jite 30, 1995 u 0ict iot 30, 1994 ELxpressediill omcilli'nsot ["S. c/u/clars

1995 1994

Incomne Income ft'oni loans-Note B Inter-est $8,069 $7,707 Commitmiient charges 118 11 5 Incomiie ftrom inlx estments-Note C Trading I nterest 89)1 837 Net (losses)/gains Realized (73) (79) Unrealized 168 ( 127) Held-to-maturitv

Intel-est 78 - Income fromiiseCuL-ities purchased unicderresale agreements 61 86 Other income 10 1 Total income 9,372 8,600

Expenses Borrowving expenscs Interest-Note C 6,842 6,549 Prepavmenlt costs ' 31 Amortization of issuance costs and other borro-wing costs 105 766 Interest on securities sold under agrements to repurchase and payable for- cash collateral received 83 46 Adlministrative expenrses-Notes F, G, and H 842 '31 Provision for loan losses-Note B 12 - Other- expenses 8 6 Total expenses ,899 7,439 Operating Incomne 1,473 1,161 L,ess contributions to special programs--Note F H19 110

Net Incotne $ 1,3 5 $51,0 )51

STATEMENT OF CHANGES IN RETAINED EARNINGS

Foirti/cc fim-.clveris ctned t cIite 30, I Q995 anci hint' 30, (994 Exvpressecd in mnilliccnsol U/S.ctcllhits

1995 199(4

Retained earnings at beginning of the fiscal year 814,468 $14,(032 Tr-ansferto International Development Associatimol-Note E (30() (465) Transfer to Debt Reduction) Facilitv for IDA-Onlv CouLntries-Note E - (10) Transfer to Trust Fund(lfo r Gaza-Note E - (5()) Transfer for Emergency Assistance tor Rvsanda-Note E (20)- Net income for the fiscal vear 1,354 1,(051 Retainled earnlilngsat eLndof the fiscal vear $15,502 $14,468

STATEMENT OF CHANGES IN CUMULATIVE TRANSLATION AD JUtST M E N T Fc-/ dt'hsc iuIvye'rs ctic,Ic, (c'30 /96 acinm/i cce30, 1994 Exptresse'cill tiillicnis otf U.S.'i/ttll-s 1995 1994

Cumulative translation adijustmenit at begining ofthe fiscal vear $1,394 $ 541 Translation adijstment for the fiscal vear 1,914 853 Cumn-ulative translation adiustmenit at encl of the fiscal year $3,308 $1 394

Tire Notes to Financial Statements are an integral part of these Statements.

] 42 THF NVORu) BANK ANN( fAL[RRFPOR T 1995 STATEMENT OF CASH FL.owS t-r1it/' hut1 \IIsir 'lit/is In(in 36 013 iii,? lii' .u()0 1t1i4 E/)1u',sst'l Iniili//iit t(/ .1 S' /1,/llao

| I In<)Rtin 4 C's 11flo5s ft-oril lenldlin_ illn (vstilng, ilt1dtic elopmelit a)ti\ itw',

DisbuLrse',CnI ts S( I2,S)3) $(l,)'.52) Printilplal r-epaymeillnts 11301 1()35() Principal prlvpamllellts 625 )) In estnc,nts Held-to-maiturT ity

l'.,,y ba.ses (8s,I 1t)) _ matuiriticLs 6 92 Payments to) thie International Devl,opmeiit Association 1,427) (4 52) Paymentsto I)elt Reduction Facility for I DA-(Ols C(OLt trics (25) (23) Paymentsto 'rust FunIFdfor Ca/a and foi EImergent A-,ssistanccfor Ri\antL (45) - Net kash(LIsetd ill) prOVide(d lbnth inVcstilg,1g, andTIdevelopment acti ties (3 ) 3493 Cash flow%-sFromll filialting activlties Mediumin- andL long-term borrow\ins New issues 6) S,I.S Retirements (I I 578) (9,121 Net t ash flosss 'from short-term hortoings 5(I3 (504) Net casi flons FromenLrIrl CV s\\wLaps (413) (I 76) Net cash ilo\%s fromil Capital transis.ttiolns 1)1 1

Net t ash used inilancing at to ities (1 335) (1,424) Cash (lows from olre2;ating activities Net income 1,354 1)i I Adj ustmillentsto reconcile' net iltOllko to net t ash prIVitletl by opeIr atin,g at ti\ Ities Depreciationaimd 1or10ti/atiOll 2 jilS Prosishin for IloL losses 12 C(halngsCinI other assets an.d liabilities (Inercise) decreaseiii atLcruLtl IncomLe oni 1oansantI illn tstnlllts 15i152 InCreaLseil misCell1eotLis asset` ((i) (24) DLertrcLsini aCCrLdtl cLharge(s,on borrowimigs (186) I1s) Intrease ill aLCcount'tspayabJMCle an,d t]XellaneoI is IisliabL ilities 85

Net cashproVitled by optrating aLtti\ itlts I4 11 I __12 Effc t tt L\Ch1inge lalte challges onl re(-stricte ash ani h0^iitl i ns'estnti sts I 4 58)5 Net (tecrcase) increase in unrestriLttl t ash anld it(itq l indvstmenIts (s 1)I2)

J rnest-riCted Cash and IiC ii( l i nsestinLenitsat betgiI ni ng of the hscalLs ea r 19119) I 8,473 1 n1 restri cted t ashLani L t id is\ estlet l it ut oi(Ifthe hs(l sear $ I-7,$ I17 11,10') C'1nipotstl oF lnvestmrents heltl in trading portfolio $ 1 ( 3) $LS2,3)15 [Jre(strictetl tirrencies 4() 21I6 Net payable for i`vestmlellt seurIties plUirchased/soltl (45t11) (9)(2) Net rt'teiVable frtim t oV\ereti forsvartl-ds I I 9 Net payable for- securities prclhasetI/sold t1iitle-drrt'le/reTp1ii-claase age e1ln1ts,nlld parable for cash collateral recei\ved (2,2 2) (I1_35)

$ 7,I87 $ 19,199

SUpplemenCTataltlisclosOrel- Increase (Lecre-case)in ending IalantlLes resultin,g tronl0 e'Chlan1ge alte ftilttUiations loans outstan1ing $ 13,33''1 $ 5,658 Borr-owings 1I) 1",)I95 3 Curren-tv s,walls I 553 I 8 lsestment,ts: Held-tia-imiturity (5)

TlheNotes to lFiuncial Statemen1ts are an integral part o/lthese Statemizenits.

IBRD FN\ANsv1A .'l S TI \IFNTS 143 S t I NI ki A R Y STI A T rNI E NT'' O F L () A NS hiltl'' 1i. mniI .

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~01 ( ,1 illial l/ili!/ ...... o,1 ot tol}llel 'aiMis IldiiIt.Iiii.d Peri itg I~~~^'mil, 1, IviI K u .,teXitagi-( 'Iota)l (i.t liii 'et Clt)tntt Loan,.> aits'i Itiirrirnl( ir giitiraiitrii luau'. Cliii tii Icuaid$ uiiitstalituiig' lit,titauititg

Alc-Oc '.177 SX I II 1 2.)66 1.67 A ILe n ti ni 7. 1 I 125 1.92S 4,9312 3.99 AmripcIlia 13 9 4 Baliaihian..ThL l(o 3 17 (.0! B;ngl.Wtlt~~~~~~~~~~~~~~~~~~~' 6h(( ) ()'S B;arl.lllo's 4(0 25 1 I ).) B lnrisI3I7 6 116 (.(09

Bolkia 121) 12(12.1(I Bosnmia Her,Leoxi in!/ FecleiIil Re publiI ot' itosl;iu I\ I ..837 1.X87 1.49 Botsw:%ian I I8 2 I1(6 0.09) Bia/il 11.336 412 4.1(i() 6.824 53 BRule;iria 7S4 481 (63 473 0. 38 C;aiplvlvesi 785 56O 729 ((.5f9 Chlailc 2.6113 13 38X .)I1) 1.67 Cli,,il I 3.8,76 1.6(1( 4.(72 7.244 5.87 Colnirbia a.7( 6 62 888S 2.8(8 2.28 Colluni 129 4 125 ().1() Costa Rica 449 1() 349 ((.28 ('6te cFII oil c I7.8 S9 1.786( 1.45

Ciroatia 348 120( I 29 L)(9 11.I C LI.', 144 - 82 ().tl7 C/eeh RepubliiC 6(4 257 437 ((.35 Diiom ilitica I I --- Dol)lilliticl Republic 3I91 28 5 (1)4 (125 Ecualor 1.61.3 12 .534 1,()67 ().86 Egypt I.837 S1 262 1.494 1.21 El Sakiladol 387 59 328 (1.27 Estollia 114 3(1 4 41 (1(13 lFiji 6(6 24 42 ((.113 G(llbn 147 216 I2J-1I.l( (Cllblani 71 71 ((.(6 (LKI(eltillah 299 9 10(7 183. (.1S G]iffalilm 42 42 ((.(3) Hondimurns 51( 51)3 ((.41 lIIi Zlnar '..154 38 686 243 1.(7 Ic liainl 4 4 I ndlia 15.5(x 27(6 3,988 11.244 9.1I( I 1iollesiii I S.S7S 1.243 3.74 1 13.591 l .1() 1-Mu.IslkiciC Reputblic of 887 624 2630 ( .21

.lniC:iicl s82 19() 632 (3. I Ji(IiL:til 9)7 6(1 167 745 ((.6(1 K:i,nikhqtan .58''5 9 68 28 I S (). I 8 Kenvya 517 - 517 (0.42 Korea.c RCepulic o .i,271 175 618 2.478 2.1(1 lat\ ia 2'S 14 58 56 (S.015 LLlr;lil(ll~~ ~ ~ ~ ~~~~~~~~~~~~6 9((1(I 17)I(5 R).M^ I esotho I 1) 171 5 ((.1)4 I .iJhria 17(0 17(0 (1.14 LitLhuaiJn 127 S2 I) (65 ().(5 MaceCI-uinia.(uniter '-liluoslan RCepblic ol ' 18S 4 94 ((.0(8 MNIadaizascalr 14 14 ( I.(1 MNalawi 66 66 (0.()5 MNa siiln4 i1i 8S4 1.I 69 (1.95 MiaII itIllin I 3 13 ().(1 M.lruliutus 26(10 47 56 I57 11.13 Mcxicoi. I 1)))99)9M 3.481 14.486 11.73

144 THI WORVIL) BAN\I\ ANNtI i\I R I'ulzT 11)1(5 Loianitt I ridihitrsedt Per(eliitage approtied l,liiit. *, Of iotal Toital buttlot vet effective ILioais ltinHis Bore" er or gLiririiiitor toctiis effectie 1flail2 otitst.niniig I 'ititiid digi

Mol(lova $ 193 $ 31) S 3( $ 133 .11 Morocco 5598 58 1.427 4.1 13 3.3 Nicaraua 8() - - 0 (.(06 Nigeria 4.43 I 8 Is 3.61 3 2.9 3 Olanll 3(0 - 30 (0.2 Pakistan 4.687 2)6 1.148 3323 2.69

Panania 347 __ 117 205 ( 0.17 PaPLuaNew GuillCeI 418 - 1()( 31 (1_2) ParaLua\ 416 97 152 167 (.1 4 Perit 2,575 29 6 55) 1.721) 1.39 Philipini es 6L') 18 1.4(00 5.498 4.45 Poland n..979 - I.X.Y')9 2.)909 1.69 POItaLII1 3.7 - 14 123 (. I () Romanta jl7jr 23() 435 857 11.69 Ruis\ia 4.721 ,2)42 1.845 834 (.68 St. Kitts and Nevis 3 2 I St. LLcia 9 6 I 2 St. Vi aceiit andlihc Grenadiles 3 2 I Settegal 4 *_ 43 (0.1)3 SeychIelles 9 - 6

SicIIrI Leonle 3 - :1 Slovak Rep)ublic 326 - 47 279 0. 3 Slovellia 228 59 169 0.14 Sri Lanka 57 57 ().()5 SLIun 6 - - 6 Swaziland 511 29 _ 21 (1.1)2 Syrian ALab Rep)ubliC 453 453 11.37 TanI7zani. I()8 - - M()8 ().(19 Thai land 2,60)9 19() 479 1.940) 1.57 Trinidadand Tobago I 6 56 71 (0.()6

TuIsiSia 2,638 65 687 1.886 1.53i Ttirkev 7.482 1()() 1894 5488 4.44 Turk nlerlistanll 2 57 - - Ukrkainie (691 146 385 0.3 1 Uljrt'tlav/ 790) 16 197 577 0.47 LUzbekistanl 248 66 115 67 11.115 VelneZUel;la 2.878 148 90)4 1.826 1.48

Zalre 97 _ - 97 (1.(1s Zanihna 197 197 1).16 Zimbabwe 824 - 215 6119 11.49 SUbtbtalI 178.3 1 11.962 43.814 122.555 99.23 CaribbcanDevelopment Bank"' 42 211 I 2 I() ().(1 Internlat(ionIaI Fin;lanceCorporat ion I.(118(1 - 146 934 0I.76 Total June3). 1995 $ 179.4531 $11.98 2 $43972 S 1 2499 1()()()( Total June 311.1994 S 164.30)( $ 11 *.349 34366) $I ()L. 29 I

t dl/hieleite ntitolltsless tlatnl $0.5 imillicit or (.005 perceilt.

I Lcis fotiilitig $5 I i/iou ($5.1m9ti/lioo-Iihow 30, 1*04) Itti' been appon't'il lx' f/ic IBRL) (t tll' related aipecii.etts ittle tlft 'eentstgl tec /1 1oil cg-t,eilieilts titaliiig $6,784 milluim ($6 153 milli/n-lioti' 30, 1994) /lcuf5'.led Si gie1 /101 1/lu' (rictus 1. not b'eucomel/(atioe aiti tisl'rirseinteilts t/ilelnet/erd II(,/ Sita t iiiittl tlte l'orriru'c'is iii I /Hgularsint-ts, i/ cllsY, tii/ke cet'itctiniaetiilsw l fnfuri/i(ft ceeill (IOClotc15MOWSto tI/ic (BR D. 2. 0/- tice tbnthtl urtiseld/balitanee, tile IBRI) hits entelrcti rtun irrevoca/',' eimmitinlilts to dliburlse $1,9834 ollllro ($1,861 mlillititl- litle 30, 194). Total(coans oitvtamitiiig T,,tell~~~~~~~~~~~~~~ais citI Jtotetie 30,r)I'SIl~l-( 1Q99 tilue/ti $ I)i319037ot/ot(8,8 Imf.is^ittllleg1 ion!.} ($8tj Ia 5828 m1il1Cli//ii/oe0,37imi-lue 30) I Q04) tit ira'cn'ln,ibe lSlteilr's lvte '[s rate-sae iuch$1 . 128 iutil/hctit($19, 703 ic/illicli-Jci'.3), 19)94) ait fisetl itterest lwile. 4. 5er'Notes to Fiilcit ii Staitemient ls-Nlctes A iic B. S. hlicih/ties p orttoi ij l ts i,tt/c to corpora titiot ',I t/te fci'cr Fo st .- /ricsi Cottiu tllitv 15. 1 6. V1ti'seil(iiti lt 'ref-ci t/he (tlifeit of TheBai/hmiintis. Bibic/ticcu, Gis'l.tti, Gtiy'uta, .lticitttfa, Trinidcadtctr1c/ ci/obfg,out X teirit'ries oit/te Uninti Kinlgdii (Ass(.itiitel States tutu Depeitr'iii w,') ill thie, cttbleaii Regnit,ni/11' .flestl-et'ralW ill/c/ its( H'Iriittcrsl tic tile .st,'it (/f su/c/'lotisliacfle in their ternitlites.

IBRD FINANCIAI. STATEMIENTS 145 SUIMMARY STATEMENT OF LOANS (contimied) June30 '1995oun! un'e .30. 199IQ Expressedin nIilliis ,,tuS. elnlloar. Summiiaryof Currenicies Repayable on Loans Outstandinig

Current; 1995 1994

Austr-ianischillings $ 216 $ 189 Belgian fran-s 268 235 Canadian dollars 165 164 Daniislhkr-onier 87 75 DeutslChe mark 30,053 26,142 European currency unlits 16 17 Fininishimarkkaa 59 48 Frencli francs S61 783 Indian rupecs 26 2(6 Irish pouLnds 29 28 Italian lire 176 183 lapalneseyen 44,722 37,175 Kuwaiti dinars 52 154 Luxembourg francs 41 35 Mlalavsianrin-git 46 41 Netheilands guilders 3,016 2,701 Norxs eoian kHonier 72 65 Portuguese escu.dos 25 22 Pounids stemrling 263 2S8 Saudi Aratbiall rivals 90 91 South Afnrica rand 41 41 Spanishi pesetas 126 116 Swedish kronor -5 72 Swiss franics 13,068 11,855 United States dollars 29,886 28,753 Other- curreincies 20: 22

Loans outstanding $123,499 I109,291

Maturity Structure of Loans Outstanidinig

Period

JUIly1, I 9t ? throu,gh June 3(0, 1 (906 $ 14,380 July 1, 199(? throughLJu ne 30, 1 997 13,1 55 July' 1,1997 thl,otjgh Jlun,e30), 1998 13,406 July I .1998 thro1ug,hJLuRne 3(), 1999 13,228 July' 1, 1,999 througLh lJune30, 2)000 12,272

July 1,2()(!() throughi June 3(), 2()(-)5 40,67

July 1, 2005 througlh Jun1e30), 201)1)) 15,133

July 1, 20)1()thl-oLugh June 3), 2()15 1,29)5

Total $ 123,499

The Notes to FinancialStatements are an integralpart of these Statements.

146 THF. W\ORL) BANK ANNIIAI. RFIORI 1.995 SUIJMMARY STATEMENT OF BORROWINGS June 30, 1((97 and Junie 31). 1 904 EApressse ill zillii'ls o US. dioll/ls

Medium- and Long-termBorrowiings and Swaps Net , rrecnu NIed11imi11-lEn liig-twrni hIo ro, ing, S-ap ag-,meiit' obligation,s NtI ighl,d \t'eigliitd a,' c age (Cauruiniv s-ap 1 erwage, ost Pi in pailltirio,tanding bpJsalil t ("i) ( i ii'tlts) (retmiril)(1,,

1995; I1Fl'l4 19) 194(5 19()4 19'95 1I'5 1994

Auistraliand(i(ilars $ 3-22 $ 5(144 11.63 S (31(o) S (5()5) I 581R92 3 S ( I )

Austrian 'chiltlngs 21)S 5 .SI7 - (73) - 2i'5 222

Bhlgian fran 5 s 353 523 7 I)S (339) (4 I) 10 22) 14 52 Canladian iloffals (,54L) d 1,745 - I( ((.348) 54SJ ( 718 ) 2(1 1' DainishI Hkioier 4S - (4.) - I

Deut-she 1ma-k 14,45 11 11 1 5 1 ,I2, 1,4 II 74t 22,n8'' E Ll-'llruan curi Tei unlits 1.(7 .1 2,111 hI.91 (1,51S) (I,u83) (683) 183 IS Finn11ishl1nirkkaa 141 114 9 (iS (13") II12) (07)) 2 2 Freiwh franc.1 'II'I 1,421 ] 7 (821) (S5) (S 51 348 544 Gieek craumlin) 66 ) 1Ž22 (I ) (62) (15.22J 1 HOng Kon1gIdllars 336 4()1 42 (334) (41))))4N 411) 3 I Ir-ISil pounds 65 (11 7. (u'5) (48)) 7 75)I Italian Iire 3,1)42 3,56 1().55 63,IA41 (3.4L)( ) (1)501) 28 16 lapanese Nr1n 4 2,I3() 1 3 7.(. 5.25)) (4L1 1 2. 1 (1,246) (1.55) (747)' 41,4S3 34.58I Kuwaiti dinat s - 1112 - I1( I .usenih0LiIg tran-s 14)) ¶2 -774 (1):;) (i)1) 765) 3S 32 Netherlands guilderS 3,25' 35,(S- 27 5)111 55°i 691)2 ( I (ROl,) (I ,3'15) ( .))( 2,1)2 2,251 News Zealand diill.irs I i 14 )) (41 ) (1 48) (12 41))

Noiiisegian kriiner 40) 36 0 S5 41) 31

POrtuIguIeSC Ces(Udos 2() 267 167 12931 2)t4) (I)) 811) 3 3 Pound1ls sterling 2,311X 2* 7)7 . 9.62 (1,13)) 11,415) (8.j)7) 1,3S2 Sipanlih pestiAs 8)11 1111)11 11.44 (8S51) (''871 (11.44) 1(1 14 sssedisls (minor1O 124 1 IS 11.43 (123) I ls) (I 1 42) I - SwIss trait>. t (,7- 5,75S 1,.()5 4, 2() 4,442 5 45 )i(,89)i 1u.2)1 t lHlted State' dollals 2:;1 18O 24, 3 1 0 2,146 2,\134 I)))) (2,56") (2.672) (7821 24,745 4,, Principal at face \alLe 1()4.49)) c;,' O.8))t PlIs nlt U1a n1i'ortiZed piem I(insI (dCISCIIUnts) I (24)

To tal $11)4,5(1 S15 tI5

IBRD FINANCIAI. ST.TFINIENIS 147 SUM MiARY S TATEMENT OF BORROWINGS (continued) Jiou 30 ,109 4 anil nt,,e30,. 1994 Exrelssed in illirons of U.S. dollars

Mediiunm-and Long-term Borrowings and S-waps (couitinuot)

1 a. See .N\otest,' Fminncial Stteieimnts--Notcs C anl D. 1'.10(11chi's zero-co ltlion 1 ro-tlvingstl, ,t hot,' l'eitl roicil ol(it their dtisco,tmnted( sm/tos.The gircgmate 1(,cra mounots aimd cliscilmloted'al- 1esof thesecbltrowi'ngs ot lioe /0, 199(5 (an1( loet 'n0, 19QQ4arl:

In inillioiis of l I.S.doll: r (q11 Malerlts .Aggriegattef jinlount Dik

c. Inclulesintoo owte midelexpefnse frotnJ interest rm toI stuci's. Att .n 30, 199) 1(1illoti 30. 1994, the IBRDLhls e Itentrte(ito interesttoite sIVOap(ig4ei'ieitts wl.itl n's/tea to ilotioltel/ principoalam001its its (of/on's-

Cil rrcn, amil,lo,i l .S.dollar eCq1lisalent CurrenuN!1415 1994 1995 1994 Canadian dollars 149 149 $ 109 $ 10s Deutsche mark 14,293 14,991 1(),2S9 9,442 Frencih francs 984 984 2f)' 182 Italian lir-e 20(1,1)0( 20(0,00(1 123 127 japanese ven 155,1)3S 152,350 1,843 1,522 PouLidssterling 1()U 1(1I 518 155 Swiss fran s I , 24 1,124 977 841 Uni.itedStates dollars 2,43 5 3,681 2,435 3, 681

zls oitJoin' 30, 1Qt)5, 3 ptrct 9(5p't senitt-hi e-3(0 1Q994)of tlze (i/t'i'o intiotial( priincipl amniounts of thiose initertst -"tt st aOop agtreeotei its ore bunmilflmitutitg rotes ilitt flAixt1 l tis.

4I. Includtesthe- tOllo//n lnI'otiol'el[ intrest 01tott boriswn ilim t9it lihome30, 1 )995oitdel tle 3), 1994,tt whichi tli n-nihl swaps hav(l 11tbee tr-its formedl iito ti,t fti,,tiiciel ,eptii'lni o'7thoffxe owte borroinugs:

lit fli)i-llis ( t1ltCi,lcu!alllotlil t .S. dollar eq Uilc11it CiurenNv 19!!5 1994 1995 1994 Canadian cdollars I11 10I( 0 S 73 $ 72 DeutschCe mark 55() 425 39(i 268 European cUrtencv uiniits 64(0 641:) 857 774 Italian lire 55 0,0((11) 5?(1,)0(1 33 351 Japanese cin 144,5(1() 149,500 1,718 1 494 P'ounds stcrling 25 25 40 39 UJnited States dollars I ,5(3 1 (i2 1,5(63 1,602

e. Iljiw-tIds$1 78 ot fliollm($1 -S illioit- Itote 30 1 0144) /ovround 'l lit itime luitererst Sub1sidv Funtd. liic litnetsst Sutlsidtv tujid, whitch

of'tained its resotuirst momit'ol Jnt(mta! cnittrilutti'n is friit,'i iif'm'r trit t.s iislttei est(i/'lislied to stl'sihti: tdic intten'st polvinents to tlte

lBRL) on 'i'( to,) loan',1

J. TIwt' ighwli, av m'ry'itt cost of t itli-, ,,,lii Ionl - mettt / (ortlooi'it o llstt dtiltldt,tat Juto ', 1995. of(terol itiwtte, it for ste ip atctim itis, teas 6.53 pei-s-sit (6. 72 poincowit-hlite 30, 1994).

g lmcfin/i's 1'orrotwing ofS408 miniflioit Uitleiits fir tlt him eftit,c '1 itivterest rati' ImIs fitt vet l'eemtlfixod I hest' ltOi0101ts t5 rtw friloc.tcd. t14TsillHl) curnK N\,l It\ iH. I 1 5

1 4X T HE Wo)RII BA/NK ANNj]tl.,j RE.PORT ]'0) Maturity Structure of Medium- and Long-term Borrowinigs

Period Julyv1, 1995through Junle3i), 199S 0,450 July 1,1 996 throughi June 30, 19)97, 14,1)84 July 1, 1997,througih June 30, 1998 5 ,1i68 JuLIly1, 1 998 through June 30, 199 8,1'98 July I, 1'999 throughi June 30, 2()0(() I 5,646

July 1,,20t)( through June 3(0,2005 3(0,47 July 1 2()()5 thIouhI0 .Junle3(), 2(1() 2 727 July 1 201(0t(hrouIgh Ju11nei 3(0, 2()1 7 I, 84 July 1 20 1 7 through Jlue 3(, 2020() 3,83() Jly 1, 7(02() thlr-ou-gilhJlue 3(),2(125 1,521

Thereafter 337.)

Total $104,490)

Slhort-term Borrowings Weighted

itset-a ge Pr il ipl outstanding test (',)

I 19;5 I 994 I905 Short-term Notes (11.S.dollars) Principal outstanding at Face value 51.'1 2 $ 69 1 Net unamorntizeddiscouLIts andc premitiluls 120)1 (8) Subtotal 1.192 683' 5.96

Short-term Notes (Japaniese yen)

GlobialMulticurretcxy Notes U)S. dollars 2(1 - 7.01 Italian lir-c 86 - 5.46 Subtotal I (60

Central Bank Facility (U.S. dollars) 2.600( 2.600 5.81

Total 3.b898 3.$304 5.85

No\ s a*- (CIIzoles in tcrst r £9l.0t1ll tlgruetlents Ivitlt r/ 1t 1tl01ilonlIl Ilncnifl atIoIntsof $262 nnilion US (ISolltrs antltl S2 i i/Will equI(il•lth1CtoflJitpt nese Nen. 1'. HNsIl'eeiI Isit st7pprl e from lllitt lirteto DeutsclIellIil+. TlheUS. dulln tt tIellt'11tN of Il/l' SIO1p NVl\'i tln/e lnd recOll'/i' re $S94mIil 10I1l a iil $86 indi/lion, respectivelly.

The Notes to FinancialStatementts are an integralpart oj these Statements.

IBRID FINANCIAI STAIEMENTS 149) STrATEiEM E NT OF SUBSCRIPTIONS TO CAPITAL STOCK AND VOTING POWER June ,30. 19"S EBXprtess/dm in iims ot *'S. dIol//Ius

Subscripltiois \'otinig pow,er Aniolits PIl-, eitlage \Ailounilts sibjeu t Number Per enltage oif Total plaid in to tall of) o f kemtiiber Shares tIotal amounilts (Non A) (Nnte A) votes ltlta I

Afghanistan 3i(1 (()112 $ 3(6 8 3.6 S 33 550 ((.114 Albania S3I 11.1)6 1()( 3.6 ', I.()S(. (07 Algeria '),252 11.1)3 1, 6 67.1 1,)104_ CC'52 1.6 i3 Angola 2,6-( C.i 323 1.5 3(15 2," t )I.1') Anltigpa d,ll. Barhr,uil 292 1()(2 35 C. 4 35 542 (1.0)4 Argentina 1 .,11 1.22 2,16h1 132.2 2',( l8.161 1 21 Armenia 1,13 ()1.()S 131 5.9 132 1.3S9 ()O) Austlralia 29(16( 1 4S 2,i)7 171.4 2,43(i 21,Sr6( 1.1I5 ALIstriai 11,C);3 (I7(j 1,33.5 SO.7 1,254 11,313 ('.75 Azeihbijan 1,i646 (.11 I71 ' I(SI 189)( 11.13 1 Bahaillis, 1lic 1,111- (I).() 12') 5. I 124 1,321 C.111 Bahrain 1,1()3 (I.()S 133 5.7 127 1,353 (1.() Bangladcsh 4.S54 1).33 5S(i 33.') 552 5.1()4 1).34 Barbados )48 (1.() 114 4.5 II) I,18)S ().(18 Bel.rus 3,3231 1123 41(1 ' 2 322 23,573 (1.24 Belgiumil 28,'3S3 1(')S 3,496fi 215.8 3,281 2'1,233 1944 Belize is86 11.114 71 1.8 (i69I 3 6 1)06 Benjol 4S. (1.113 5') 2.5 56 3 ().(:)5 Bh,,t;,,, 4791 ()1.3 58 1.1) 9i 11.()5 Bolikia 1.S5 (. 12 215 118 21(5 2,1()35 11 14

Botls1anl) 615 151.14 74 2.11 72 86 11.1(6 B-aiil 24,')46 I1 I 3,11()I) IS5.1 2,824 2 5,1')16 1.6 Bulgaria 5,25 ((.36 o29 30(.5 51)3 5,465 1.3(6 Bur-kilimaF'aso 487 (1.1(3 51) 2.5 56 737 11.115 Buin-tdtLi 41(2 (.(13 4S 1.8 4 6(52 (0.1)4 Cian1lhodia 214 (1.(1 26 2.(i 23 464 (1.1)3

Camlerooll 857 (1.16 1(3I, 0') 1,17 ()(t17 Camada 44,.7'5 3.()6 5,4114 334.1) 501)1 45,()45 2 (4) (Tape Verde 5(1S t.)(3 6( I(i1.2 758 11()5 Central African Republic 484 1.1)3 5S 2.5 56 734 11.15

(h,adi 484 11.113 5S 2.5 56 734 ().()5 Chile 6,)31 11.47 S3(6 4').( 7S 7,l8 I 1).48 China 44,7')') 3.116 5,4()4 335,() 5,1)(i' 45,()4') 2.) 9 C,olllimia 6112 11.43 766 45.2 71 6,6112 1).44 Comlloros 282 (1.12 34 (13 34 532 1114 (onlligo .211 11.114 (.3 2.'1 (i() -,111.11)5 Costaj Rica 233 ().()2 28 I .) 2(i 483 11.113 Cctt CIlv0ii1 2,516 11.1.7 3114 160.4 2S 2, 766 (1.1S Croati.a 2.2113 11 lIt 27- 17.3 25" 2,543 11.17 CyTrIs 1 ,461 1I(I 17 j6 8.4 168 1,711 (.11. (CzcchRepullbli,_ 6,3()S (1.43 761 45 715 6,558 ).144 Denm.ark 11(,251 1( 1,271 74.60 1,1I)2 1(:,5t)1 1i.() Diihouti 314 ().(2 3S 1() 37 5(4 (1.()4 Doiniiia ll504 (11.3 61I 1.1 (611 754 ().()5 Domlillicanl Repulblic 1.1 74 1(8 1 42 9.8 1]32 1,424 (1)9 Ecctiadlol- 2.771 11.19) 334 1S.2 31I 3,(21 (.2() Egypt 7108 ().4'1 858 5()' 81C 7.35 1(.49 El Saladtor 141 (1.( I 1.7 1. 15 3')1 (.1-(3 Ec(iatorial Guinica 411 .()1)3 48 l.(i 47 (i1 11.()4 Eriti ca 333 11.112 411) (1.1 34 583 (1.0)4 Estonia IS18 (.4 63 2.8 li) 768 ((.115 Ethiopia 98'.S 0.11 18 4.7 113 1 ,22 (1.(S Fili c)S (170' 11') 4.8 114 1,237 ()t)8 Finland 8,511I (,5' 1,()33 61i ': '.1 8,81 11(.)58 Fiance (u,39) 4.4 8,312 5214 7. 6c9, (i'),4 4.(62

15) TFi WC)OR]D BANK ANNU AL. RE ()RT 1995 Slhs( ri ptitoils \Votinig pov ecr AlIolilt, P'erceutage AnouotIst 'Li hje( I Ntiumber P'ert ( lntage of Total paid i,. to (ail of of Nien her Share' total :11ailotitt NowtA) (Note A) ote' total

G abon 5 54 (0.014 S 67 3.6 $ 63 S()4 ((1(5 Gambia, The 3(35 6.62 37 ((. 31, 555 1((4 Georgia 1,584 J II 1, 1 6.3 I82 1,S34 1.12 Cerlmany 79, C399 4 15 S,734 542.9 S,,19 I 7,14c) 4.28- Ghanlea 856i 1).661r 1(13 163 93 1,16i .(I,l7 Greece 945 1(.66 114 11.4 1(63 1 I195 6.I(s Gretnada 531 (3.(4 64 1.4 63 781 0,115 Guatemala 1,123 (I((s 136 I.3126 1,373 (1.119 Guinea 25 i3 i)5 88 5('8 2 '. 5 ((1o Guinea-Bissau 3(3O (. 12 7/ ().li 3( 553 (4.114

Gtuvana 1.1(58 ( (17 1 28 .3 1 1 .3(S (.() 3 Haiti 5''9 (((4 72 3.7 (69 849 ((.06 Hondiuras 36(1 (0.1.2 43 1.3 42 6 (I 11.1)4 HuLIgar- 8,(5 1((.551 )71 58.11 C)13 8,301(1 1).55 Icelanid 1,25S ((.11) ]52 6.8 145 1,511S (1. II) India 44,795 (3.i6 5,.4(4 33,.7 5,1)7(1 45,(45 2.91( Indonesia 14,981 1.112 1,S1)7 11(.3 I5673 15,231 1.(3] Iran, Islamic Republic ot 23,686 1.62 2 .7 1 75.8 2,'S2 263,I36 1 .59 I-aq 2,8(08 1.I9C) 2 73 1 312 3,(58 ('.2(3 Ireland 5,2 7 (). 36 63( 37 1 59! 5.521 '.3 7 I-rael 4,7511 11.32 573 33.2 54(1 5,((01 6 33 (ta.l 44,7L35 3.6 5,41(4 334.8 5.(;69" 45,645 2 "' Jamaica 2,578 118 311 16 8 294 ,SI28 (1.19 lapaln '3,77U'I 6.41 1 1,312 71)3 5 1 (1,608 4,(321) 1 24 lorclan 1,388 (1.119 I( i 7.8 1I(1 I ,638 "Ill Kazakhstan 1 (75 ().I 1 _13 15.11 187 1 25 (.13 Kcena 2,4( (4.17 297 15.9 281 2.71.1 1 1 8 Kiribati 261 ((((2 31 (O.1 31 5 ((.133 Korea. Repubbh of LI,372 ((.64 11,31 (l7 9 1.'463I) ' (( t)4 KuIwait 13,2 (38(11 1o1I(I2 97.4 1,51(5 13,531) (1 9, K\rgyz RepUbli (62I (1(14 .5 3.'3 71 8 14.1(, Lao People's Democratic Republic 1()( (D(.11 12 1.2 11 35(1 ((.1(2 Latvia 77 14.15. 94 5.( 88 ( (0(97 ( I.ebanon 34(4 (0.0(2 41 1.1 4(1 591) (0(.04 Lesotho _?72 (6.63 45 1.3 44 622 ((.64 Liberia 463 (1.63 56 2.6 53 73 1(1(5 libya 7,84(1 ((.54 146 57.11 8 8) S,l (1 1154 Lithuainia 84(5 (6(.1 11(2 ('.3 96 1,1(6)6 ( (17 I.uxemboUrg 1(652 (I II l 8 1911 1,6(12 11.1 Mla,edonia, former `YLugoslavRepuLblic of 427 0.(3 52 3.2 48 677 1174

MJdagascar 1422 (1.1() 17 8.1 1(I4 1.)72 (Ifl I Nlalawi 1,1)14 (1((7 132 56 1]2(5 1,344 (1(9 Malavsia 8.244 (.1515 965 59.5 9)35 8,4914 3 5(6 Maldives 469 (j(.3 57 () 5;- 7) (((5 Nlali 652 (),1(4 79 4.3 74 '((2 (1.66 Nlalta 1,174 (1(17 13(1 5.4 124 I3 24 ().()9 Marshall Islands 263 (.(.2 32 ().1 32 513 ((.1)3 Mauritania 5(:)5 ().(3 (51 2.7 58 .55 (1(15 MaUritius 1,242 11.1)S 15(1 (.7 143 1,4 2 ((.1(4 Mexico 18,80(4 1.29) 2.268S(). 13 2,12 9 1 9.(154 1.2(3

Micronesia, Federated States ol 479 .(.1(3 58 I (3 ' (.(35 Moldova 1,3(68 (4.(9 1(55 7.15 157 I()]8 1( I1 Mongolia 466 1(.03 56 2 3 54 71. 11,(5

IBRD FINANCIAI STATEMENTS 151 STATENMENT OF SUIBSCRIPTIONS TO CAPITAL STOCK AND VOTING P1OW E.R (sun(iu,el) lullne 30, (919)5 Expre-tys"wl ,iffionC,m, o, U.S . (Iflalrs.

SuLiIt ri ptioln \otinog poser

I \oi& ilitag, Aiotitts stibject Ntimiiber lie eltage of Total paidif) to (aill of of Nleiiiher Shalri' ts111onl iiolit ( INOteAl (Noti A) eotc, tiital

1NI:-o1cc(, 4,73 4l3 S (6((0 S 34.8 $565 5,_23 (t.35 Mlozambiquei31 li(H(. 112 4.8 1(71 11811 118/S MNaa:Z:111r 2,484 (1.. ((1) I 6.1 2S4 2,.34 ().1S Namibia 855 (0.0) 1()3 6.4 37 1,11)5 (:16 Nepal ((), I1 768 4.6 112 1.218 (0.(S Nethrlalnds 35,5(3 2.43 4,2S3 204.S 4,(01X * 53 2.3. New Zealand 7,236 (I.41'! S3 51 .) 21 .,486 ()1.5I Nicaragraua (i (((4 . * 2.1]71 858 (0.0 Niger 478 ('.03 58 2.4 55 728 ((.()5 2 Nigeria I12,;55 ('.87 1,2 ' - I ,434 1 2.)(:5 (:.8 Nurw a\ 1,082 ('.1) 1 2(14 I.2(1,1 2 (1, 2 2 (1.68 ()man ],56t I 11 ] 18ISI) I I .7 I,S] I 1) 12 Pakistan '),339 '(.64 1, 127 ( 78 1,()59) ' ,5 S' 1(.04 Panamzla 3S5 (W.113 46 3.2 43 1 35 11.(14 Paptua Ness GuineaI1J (1.(5 S. 5.( 83 970 li.0Hi Paragas I ,220 ((.(S 1(4S 6.6 142 1(4 7) 1.]( Pert' 5,)31 Ii3)i ((.30 I:i43 37.5 5,58I ().37 Phlilippinecs (i,844 ().4V 820 48.') .7,1(94 (1.47 Poland II7 (( .5 1,310I 7.6 1,23 r 11,158 (1. 4 Portugal 5,46(( ((3 385.51 (211 5.71( (.3S

Qatal I,(96 ('17 1]32 (1) 12 (134 ().( Romania 4,0111 1.2- 484 3').5 453 4,21 (( 228 Russia] 44,7"5 .(1 5,4(4 333." 5,1(71) 45,(!45 2 ';! Rwsanda 587 (1 ()4 .1 3.6i (i7 837 ()3(((i6 St. K itts and Ne is 275 ((.0)2 33 " 3 33 525 ().0(3 St. LUt ia 552 11.1(4 (,7 1.5 65 812 ('(.15 St. 'Viinenlt and the (SrGinidicnes 2I (1.((2 34 (1.3 33 528 ((1(4 Sao Time and Print ipe 278 ().()2 34 ().3 33 528 ().0(4 Satidi Arabia 44,75 3 .(0 >,4(04 335.)) 5,1(01' 45,3145 2.9 Senegal 1,11)3 (((S 141) '7 1]31 1,413 ().()'

>ev)ellel 26i3 ()112 32 ((.2 32 5173 (()3 Sierra Leone 4')3 ') "3 49 1.8. 47 53 ().i)4 Sigappore 3211 (!.1(2 39 7"53 571) (:.)(4 Slovak Republic 3 210 1122 388 23.(' 305 3,406 ((.23 Sluvema% 1,2(1 ()( 'I I52 ' ]431 1,51 1 'I. ]( So100loT ]aIslaL 5 17 ()((4 62 1 2 61 (73 ().(:5 Somalia 252 ((.1(4 67 3.3 (3 S(2 (1.()5 South Afrija (3,462 (1.02 1,1)24 '8.S 1.525 137,12 1).0] Silpill 23,686 1.02 17 5.6 2,(62 23 636 1.59 Sri Lanka ,81 7 (0.2( 4(1) 21).) 434 4,()(06 1.27

Sidan 851! ).() 1(.) 7.2 '5 1,1(:)) (I)2uo SUrildna(2 412 0()1 5)' 2.(! 48 062 (0((4 SN aziland 441) (0.13 53 2( ( 5I (1 ((("n Sweden 14,'.74 1.12 I,S() I ().2 1, )(1(6 15,224 1 .(' Sitzerland 21i,(i)0 1.82 3,21(i1 1]7'2 3,(i1l2 2Q, 506 1 7 Svrimn Aral RptpLliI 1,236 ((.1S( 141' 1(1 5 1 3) 1,480 (1.1) Taiikistni 1,(0)11 1((71( 128 53 123 1,31(1) ('(19 Tanzania . 2- (((5 XS 79 ' S) ').7 ()(.16 Thailand 6,349 11.43 766 45. 2 721 659'' 1.44 i(igo ('211 11.114 7 3." . I 87( (.(6(i

Tonga 20 (1.()2 33 11.3 3 527 ().113 Trinidad anid Tobago 1.40)5 0. il ISit 13.4 1(17 1,7 45 (1.12 Tutnisia 10IS ()1(5 57 X81 0(i) (.(.(

Turk(es ,3.7 ')5() 8(' 52'u 837 7 6 2tc ((.51 Tttrkmelinstan 226 11((4 64 2.' 71. (i ((.5

152 T'HE W'VORLLD BANK ANNUmAl RillPORT 1995 SLI L riptioms \Votiiig Power Aniout,,,t Per( niltage Aittout,riitsij t Ntiuimber Per cintagi of Total paidi iii to alIl if of NVleiciher- Slimies total amounts (Note A) (Note A) votes total tUganda (-7 0.04 $ 74 $ 4 4 S -817 0.06 u kr-aine 1(,')(I tl. 5 1,310 73 1 11,158 0).74 United Arab Emirates 2,385 ().1 288 2.6 25 2,13- (1.17 'Inited Kingdom 60 3i)7 4 74 8S37? 53 9.5 7, S32 (,147 4.6(2 United states 255,51 17.4S7 3(J,833 ],2)1.4 4 28,8' 235,840 11) )98 U'rugtia,v 11578 ]] 114) 14 1 1[70 1,S28 ( (2 l/bekistan 2,49 ) U 31(1] 11 217 2.743 ().l1 \':lil.lanuar 580i (((14 -I 18 I,i( 1n7 (1(1 Venezuela I 1,422 II 73 I S.5 1 2611 11,677 Viet Nani 543 (( 14 00 0 (' 5') 73 (( (5

Western Samoa 2') i) ((? 3(i i) 5 35 548 ((((4 Yemen, Republic of 1.241 1)1(8 15t 1](.5 '1 1[491 l.li) Zaire 2,643 ( IiS 310) 25.4 294 2,')83 O I9 Za;mkbia 1.57 () 1 I((I I5.> 175 1 () 12 Zimbabh e 73 5 ) 233 4i1 22.4 3)79 3.57 5 (.24

Total-JLue]C 30, IC95* 1 46?_M;74 I()(). I S 43 8 $1655 I 7(174 11(0(I

Total-Junle 30, 1)9)4 1,4(0'),235 S1 7.i),))3 5I11I,04. S $5' i3 1.453,485

,Note ,hM,iv Jiffer fromt tlhc rout of ltit/i'di/ilu/l hvfiuresd to rOiuii/uig.

The JNotes to Financial Statements are an integral part of these Statements.

HTERDFINANCIAL STATI-MENTS 153 NOTES TO FINANCIAL, STATE NIENTrS

ORIGIN AND AFFILIATED ORGANIZATIONS of this reclassification has been to reduce Total Assets The International Bank for Reconstruction aLidDcvel- ant Total Liabilities bv $3,324 million at June 30 opmrent (IBRLD) is an international organization wlhich ] 994 fr om the amounts prev iousl] reported.This commenced business in 1 946. The principal purpose relassification doe nut reflect ah e in the provi- of the IlR D is to proii'iote economic development in its sinning poiy, bot has been nade to tontorm ith member counitries, primarily by pro iling loans and indLustry practice. relatecd technical assistanice tor specific projects and for Translation of Currencies:The MIRD's finaincial state- programs of economic refotrm in developing member ments are expressed in terms of . S dollars solely for Countries. Tlc aCtivities of tlc IBR D arie SupplemIIented thle purpose of summarizing the IBRD'sfinancial posi- by those of three affiliated olr anizations, the Interiiz- tion and the results of its operations fo-r the conve- tional Development Associatiou (IMA), the Intern-a10- nience of its member-s andl other interested partics. tional Finance Corporation (mF(-) Ind the Multilateral InvCestment GuarJantee Augencx (MICA). The IDA's pur- The ThRDmis an international organization schich con- pose is to promote eI onomi de elopment in the less ducts its business in the currencies of all of its mem- eseloped areadS of the world i ncludledl in the [-1<5s he rs. '[he ILuRDn's resources are de7rivecl from its capital, meniberslhip by proi iding financing onl terms svhich borrowings, and accumulated carnings in those arious are moie flexible and bear less heav'ilv on the balanice curiencies.The mRDhas La number of genei-il policies of payments than those of onventional loans. The aimed at minimizing exchange-rate risk in a multitiu lEG's purpose is to encoura" e the xrox th of productive rcncy environmen. The IhL matches its boiroxxin private enterprises in its member countrics through obligations in any one currenc (after sxvap activities) loans and ecuity ins estments in such e-nterprises with- with assets in the sanmecurrency, as prescr-ibed bs its oLIt a menmbe-'s guarantee. The MICA\ as established Articles of Agreement, primarily bv holcding O( lending to encourLaygethe flow of investments for productiv e tht prioeeds of its borrovinos in the same currencies purposes among member countries and, in parti uli in whicl they are borroxed. In addition, the ItiRD peri- to dleveloping memlbcr countries b providing guara- odicallv und ertakes currency conversions to mor-e tees against noncommercial risks for forcign invest- Ilselx match the currencies underlying its Retained ment in its deVeloping ilemlhei countrliS Earnings with those of the outstanding loains. \ith respect to its other resources, the iRRDudoes not con- SUMMARY OF SIGNIFICANT ACCOUNTING vert on e -urrencyinto another except for small AND RELATED l'OLICIES amounts reqliired to meet cert'iin obligations and

The ILRID's financiaLl statements are prepared in confor- operational neets. mitV with the _t-ountilnlprinciples g-enerally accepted I Assetsand liabilities are translated at marrket exchange in the United States antl wxith Internltiolial Account- rates at the end of the period. Income and expenses ing Staindiards are translated at the marl;ketexchanige rate at the dates During thc firSt tltiartCr of fistal year 1995, the IBRND on xhichI they are recognized or at average market acdopted a nexxvatcoumting interpretation that retfuires exchainge rates in etffect dLurinoeach month. Transla- receivables and pian bles firom certaini financialtransac- tioin adjUstMents, xith the exception of those relatin, tions be presentel on a ross basis in the financial to capital subscriptions dlescribed in Note A, are statemeniits when the iiglht and intenit to offset are not chJag-ed or credited to EqClitV. preseit. The effect is thait both Total Assets LntiTotal iiliation ofCapital Stock: In the Articles of Agree- Liabilities are int rased bV S 7,523 million ('S 19,1 3 nient, the capital stock of the BRD is expressed in million-Ju-ie 30 I c'3'4) terms of" I-S. dollars of the weight and fineness in Reclassificationts:( ertai n reclassifications of the prior effect on July 1, 1944" (19c44 dollars). Folloxving the year's inforrmation hax e bc en made to c(nform to the abolition of ,old as a common denominator of the cuirent vears lpresenztation.In prior- years, deferred monetarxsvstc m and tIe repeal of the proivision ofthe amounts rec eivable anti payable to maintaiii value of 1IT ixla d efinin" the par Valcieof the U.S. dollar in culrriencyholdings h-ad been classified as aii asset and a ternms of -old the pre-existing basis for translating liabilit's respectively. These amounts have been reclas- I 944 dollars into currenit dollars or into any othel cur- sified in the bdlance sheet as a component of Equiitv. rencl! dis'ppearecl The Executive Directors Of the The effcct h Lisbeen to redulce Total Assets by $S542?Iim) hilxe decided, until such time as the relevanit pro- million, decr-ease Total L iabilities bv S874 millioin, and 5 isionsof the Articles of Agreemenit are amended, that increast Total Equitv bx $33S millicin at lcir' 30, 1994 the wvords'US. dollars of the xveight and fineness in from those amotnits prc vioushyreported. 'Fhis reclassi- etfect on July 1, 1944" in Article 11,Section ?(a) of the fication has no impaict oin the legLalobligation of the Articles of Agrceemenitof the ISRD are interpreted to members to m 'mintian the value of their capital. In mea.nthe Special Drawing Right (sII) introduced b' aldditioni, in prioi- xcats the AcCulm1ulatedPro ision for th? 1Iternational Monetary Fund, as the SDR xxas val- Loan Lossessesx as r ecorded as a liahilitvxThis amounlt in ci in terim7sof U.S dollars immedicatel befor-e the has beeii reclassificd as a redIuction of assets. Thle effect introduction of the basket method of valuting the SDR

154 TIHE WoRL.3 BANK ANNI IAL RLPORT 1995 on Julv 1, 1974, such value being $1 .20(635 for one tion sdhedulemay be modified to av oid substanitial SDR. repaynients prior to project conmpletiol. It is the policv nIfthe IBR[1 to placein noniacCr-UdlstaItus .a11InaFIS Retained Earnings: Retained Earnings consists of allo- -ic' o th iwrltoeplac i nonacrual tau all la cated amounLIts(Special Reserve, General Reserve, anI principl interestgoara othed lerger ithresIectRtoDn Sirplus) and unallocated Net Income. c )sucLhloanI areoverclue by morc thani six montis, unless The Special Reserve consists of loan commissions set the IRR maniagemllenitdeterminies that the o\erdue aside pursuant to Article IV, Section 6 of the Articles amount xvill be collected in the immecliate future. In of Agreemenit w-hich are to be held in liquid assets. addition, if developIllent credits by the IDA to a memii- These assets may he used only for the purpose of her government are placed in nonacerial status, all meeting liabilities of the IBRr)on its borroxvings and loans to that member goxernnient will also he placed guaranItees in thle event of defaults on loanI1made, par- in noriaccrual status b\ thle ItRI). Ointhe dhatea melml- ticipated in, or guaranteed by the IBRRT'he Special her's loans are lplacecdin nonacerual status, uLipaicl Reserve assets are included unider Investments in the interest and other- charges acciruecdon loans outstadnd- Trading portftolio, comprisin.g obligations of the United ing to the memnber are deducted froIll the iiiolne of States Government, its agencies, and other official the cur-renit period. Interest and other clhiargeson non- entities. The allocation of suchI commissionis to the accuinLg loans are included in inicomneonly to the Special Reser e sas disconitiniued in 1964 'ith respect extenlt that payments hav e actuallv been received by to sub sequenlt loans ancdno fur-ther additions are heinm the Ibt). OCnthe date a member- P1ays in full all over- made to it. lue amoults, its loans emerge l'rom nonaccrual status, its eligibility for nexv loans is resto-ed, and all its over The General Reserve consists of eamrings from prior due interest and other charges including those from fiscal years xvhich, in the judgnment of the Executive prior years are recognized as income in the etirrent Directors, should be retained in the FBRD'sbusiness. period.

Surplus consists of earnings firom prior fiscal years The IKII) determines the Accuniulated Provisioni for svhich are retained hy the ilDLr until a fturtlher decision Loan Losses based onnan assessment of collvctibility is made on their disposition or the conditions of trans- risk in the total loan portfolio, including loans in noin- fer for specifieduses have been met. acRtil status. The aCCUMUlated provision is periodi- Unallocated Net Incomiieconsists of earnings in the calls' adjusted based on1a review of the prevailing curr-enit fiscal year. Comm11enicinigin 1950, a portion or circumstances and would be used to meet actual losses all of the unallocated Net Income has been allocated on loans. Adjustmiernts to the aCcumIulated provision to the General Reserve. Additionally, uponi approval of' are recorded as a charge or cr-edit to incone. the Board of Governors, transfers have been made out Invesinyemis: During1 the hfrst qtiarter of fiscal vear of unIallocatecdNet Income to the IDA (or facilities 1995, the isRD)adopted a new accouLntinigstandarci administered by the IDA), thei Global Environ-ment that requires investments to be classified into trading, Trust Fund,Technical Assistance Trtist Fund for the availahlc-for-sale, or held-to-matUlity portfolios. In the I Inion of Soviet Socialist Republics, and Supl-tis. second cquarter of the fiscal yeai, thee IBRD commeniicedl Loans: All of the IBRD's loans are mazdeto or guaran- investing in ccrtain secuLities svith the intentioni of teed bv members, except loans to the IFo.The major- holding suclh secur-ities to maturity to align the invest- it) of the IBRD's loans have repayment obligations in nent portfolio xvith the debt ftinding these invest- v arious currencies dleterminniedon the basis of a cur- Illlments in specific ctirrenicies. Remaining inve stment rency pooling system, which is desigined to equalize securities are held in a trading portfolio and classified exch1ange-r-aterisks amrong borrovers. The IBRD also as an elenmenltof liquidity in tlhe Statemenit of Cashi offers single cuirency loans. Except for certain loans Flows due to their nature and the IRRD'spolicies gov- ,vhich wvereconverted to the ctirrenicy pooling svsteml, erning the level and use of such investmrients. loans negotiated prior to July 1980 and all single cuir- The [BRLgcarries its invcstiient securities and related rencv loans are repayable in the currencies disburscd, financial instrumnts in the trading portfolio at market Inter-est on all loans is accr-ued in the currencies value and investmllentsecurities in the held-to-mlaturity outstanding. portfolio at ainortized cost. For investmlents in the trad- Incremilenitaldirect costs associated svith originating ing portfolio, both realized anid tinrealized gains and loans are expensed as incurr-ed as sucIh amnounatsare losses are included in Income from Investments. From considered immaterial, time to time, the IBRDenter-s into forward contracts for the sale or purclaase of in estment securities; these The IBRD does not reschiedule interest or principal pay- tranisactionis are recorde(d at the tinie of comnicitmeit. ments on its loans or participate in debt reschedulin.g agreements wsith respect to its loans. In exceptional Fair Value Disclosures Financial instruints fOr cases, hosvever, such as svhern implemeinlitationlof a wvhich market quotations are available have been val- financed project has been delayed, the loani amortiza- ued at the prevailing market value. Financial instrti-

IBRD FINANCIAI. STATEMENTS 155 NOTES TO FINANCIAL STATEMENTS (oetinmiet)

menitsfor- which market quotations are not readily value of its cur-rency has,in the opinlioIn of the 1INRD, available have beell Valucd LYu"lamethodologies and deprleciated to a significant cxtent in its territories ancl assumptionis that necessarily require the use of subjec- (2) the EBRL)to reimburse the memiber in the event that tive iudgmienits.Accordingly, the actual valUCeat whliCIh thluepar aLue of its currenecx is increased. such financial instrmlelnts CotilvI h. exchaiged iIn a currenit tranisactioni or wvhetherthev ael- actually Since currencies longer have par values, mainte- exchanoeable is not determinable. nnce (f value amounts are determined by meastiring the foreign exchange value of a member's cui-rriecy against the standard of value of the [BrP capital based NOTE A-CAPITAL STOCK, RESTRICTED onl the 197 4 SDR. Members are reqCaliredto make pay- ClURRENCIES, MAINTENANCE OF VALUE, AND melnts to the ERL)if their- cuirr-eniciesdepreciate signifi- MEMBERSHIP cantlI relatix e to the standard of value. Furthermore, Capital Stock:At JuLIn 31), 1995, the IBRL's capital the Executive Directors has3e adopted a policy of reim- comprised 1,525,248 (1 ,525,248-JUne 3(, 1994) hiursin" members whose currencies appreciate sigiifi- authorized shares, of-which 1,462,574 (,4( 235- cantly in tenrmsof the stalndardof value. June 30, 1994) shares had been subscrilbed. Each shaie Thlenet nmaintenanceof value amounts relatilig to has a patr value of 0. I million 1974 SDRs, x alued at the resti-ictedcurrencies oution olian are included in rat( of $1 .20635 per 1]9),74SDR. Of the subscribed Deferri-edAmnounlts to Mailntain Value of CurL-elnCV capital, $10,858 iimillioii ($1(0,665 Imillionll -title 31), Holclitigs and shoiivi as a component of Equitv since 19914)has been paid in, aiid the rcImainin" $16558) maintenance Of value becomeseffective onlv as sutc million (S 159,338 millionl-juLne 3(), 1994) iS sulbjeCt currencies at-erepaaid to the IBRL). to call onl0 xxhen requLired to meet the obligaitions of the Ir NI) created by horrox itug O1gu(airinteeitn o1.1S. Mlembership: On1FR hrliV x2'5 1993, the IBRI?'sExeCL- As to S141,150 illioii ($136,002 million-liine 30( tive Directors dveided that the Socialist Federal Repub- 1994) the restriction on calls is imposed 1 th1 Arti- lic ofY'ugosliv ia (SFRt) lizid ceased to he a meniberoftlie clesof Acreement and as to S94 43( million ($i3 33 ED) and that the Republic of BosniaLand Herzegovina, million-.iInte 30), 1994), bx resolLtitols of the ho1l-d the R(ptLliC of Croattia the fot-nierYugoslav Republic of Coxernorsi of Mavedonita the Republiv of Sox ellia, and the Federal Republit ofYLILoslIaVii (Setbia arid Montenegro) (FRN) Restricted Currencies:The poi tion of capital sulhscritp- al-eauthorizevl to sticceeClto the SNRs' imember-shiip tiouis paid in totthe NRL)is divide(l iiito txxo parts ( I ) wliei certain requirellmelItsare niet itiCluding entering $1,086 million ($1 ()tI7 million lJune 31, 1(1(4) ii- into a finallagreement xvithR the ENS on the NiD'sloans tialsv paid in gold or UI.S.dollars anid (2) $9 2 mil- macle to or- giua-aniteedbv the TRN which the paltiCular- lion ($9,598 millioii--Jlue 30, 1994) paid in vash or s(tccessou- Republic souild1assimie. Thl-ee of the five suc- notilinterst-bearitig d1 maid o`bligations denoiiatvd vcessorRepublics-the Repullics otfCrOaLtiaand Sloveniia either in the curreticies of the respective icntliet s or anedthe former YLfgoslaxRepuiblic of Macedotiia have in IUI.Sdollars The a11Oil1ts mentiotied in (I) abovxe, sitice become members oifthe BRU).The paid-in portion and (i) $774 imiillioni($779 iiilliotI-l(tiie 3() 1994) of thc SFRS', subscribed capital allocated to the other- xvhich wvererepurchIsecl b[ mcnibers xvith L.S. dol- sLccessor-Republics (tic Republic of Bosna and Hcrzc- Iars, and (ii) $364 milliotii ($284 million--muti 31), go0vinaand the Federal Republic (If'Yugoslavia(Serhbia 199')4)xvhich wvetethy ei poeeds fritrom*nc ashmlileuits o t and \Mlontenegro)) is iticluded tiiider Payments (i1 IJ.S.dollar-clenominitntd notes xvhich are included in AccouInt (If PenldiligSubscriptions utntil the requir-e- the amounl1tsmenttioumecd in (2) above ire freely usable ments ot s(tccessiitI hav e beeti met. by tIle IED) iln any ot its operations.The poirtion of the arnouits paid itnI ! S doll r- denominated notes are cticashed hy the IBRLEin accordance xvith the scliedules NOTE B-LOANS, COFINANCING AND agreed betxeen the memlibrs and the IED. The GUJARANTEES remaining amiiounlts paid itl the currencies of the meni- Loans: On AugtiLst 2, 1 994, the IBRI1'sExecutixe bers,refer--ed to as restr-ictedcu1i-e-ncies, are usaile liy Directors approved a oiie-vear- interest waiverof 25 the IREI) iti its lecnding operatiolis OInI x\ith the Coon- hasispoints on disbtt-sed and outstanidinigloans for all sent of the respectis e members,and for adiministrativ e payment periods comimienicinigin th e fiscal vear ending expenses. The equivalenit otf$5,96 7 millioii ($5,444 Ju.ne 3), 1c995for all eligible ioriior vers.Also, on million-June 3(, 1994) has been used ftorlencling Au"ust 2, 1994, the ExCutiVe Directors approved a putrposes, vith suich consent. Otne-year commitino nt fee xxaiver of 50 basis points on hlaintenance of i'alue: Article 11,Section 9 of the Arti- utidisbutrsed loans to all bor rossers for all paymiienit clesof Agreement provides for mtainteniiace of the periods commeticin i the fscal year ending June 30, IaueatthetimeotsQlbs-ripticill as ot'SU(Il re5tl- ())95.Simililar xxaiivers were itteffect for the fiscal year Valu1,e,ais aitthe timieof'stibscriiptioii, Of Such restr-icte-d endJti30194O Dcem r2019,th cttrrenicies, requ1iri-ig(I) the member to make addi- ed JLl1e30, I 904 On December20, 1 91 the tional pavmetits toi the llElNDin the event that the par- I IED's Executive Dil-cctot-s approved a proposal to value of its currency is reduced or the foreign exchange encouragc thc IBRI)'s boiroxvers to convert their

156 THE WORID BANK ANNI [AI RITO)RT 19(95 respective loans fromi 19S2 terms to 1989 termis member countries and other countries with loains or Loans on 1982 terms aLrebasedl on the wveighted aver- go arantees in nonaccrtial statiusfollows: age Cost of ill IRRD debt draw,nr dow,vnafter Jurie 31), 1 S2 w\hile loans on I 989 terms are based on the In million weilghted average cost of borrowvings funding these .uiie 30.1995 loans. Thc purpose of the conrversion is to f acilitate P'ri, ipal interest risk management by the imRrnand to enhance Principal aid o,iti - t:Inrges Nonmitct Lnal its ability to offer borro\ ers new%Ioan pirocducts. To ini[itliiig ov erdue sim eachl borrowver that conrverts all its loans from 1982Iditlr, loan terms to 1 989) loan terimis,a one-timne 1) basis 1,di al Rci- 4, point waiver ot anntial interest charges fo- two , onsec- A VI SI,S*-1.SldVi S .4(05 Sepienri-,r utive six-month inter-est periods wvill be given. Borro-w- 1I')'2 ers that had opted for such conversion before i ti D,>-nih-r December 2() 1994 were also given this wvaiver. For I the fiscal year eided Jine 3(0, I905 the combined li I it 253 1tilw VS effect of these waivers xvas to redtice Net Income h1 Sid"'I lantId

$251 million (S23S million-June 3(1, 19')4). , nip Ai iF (il,,bl, 453 511 Fi uin

In conillectioll sith the cessatioll of the memilbership of 4 NeI the SFR\ disc.ussed in Note A, in February 19)93 the 7 I P13 lBREDreached an agreemient vith FOX for the apportion- T.'ii $3 Is S' '- menit an.d service of debt due to the I;RL) on loans made to or -uaraliteed bv the SITR and assuLIled bx' the During the fiscal year entded uLne311, 19 9'5, no loans ti, xvwhichconfirmed a February 1992 inter-im agree- Came out of nonaccktUal status For the fisca,l ycar ment between the SLRl (then consisting of the Repub- etiClel lune 30, 1994, the in rease in loan inicoilme fr-om lics of Bosnia anld Herzegovina, Macedonia, loLns to countries coming out of nonacrl-ua2lstatus Montenegro and Serbia) and the lBRD pertaining, durino the fiscal vear xwas$2 million. amorll other things, to such loans. As of the date herot, no debt-service payments have been received An anal.sis of the changes to the ACe 1im1ulated PrOVi- liv the ouiR) from the l'Rn'. WNith respect to the Reptablic sioI for l oa.n Losses for the fiscal ye ars ending June of Bosnia and Herzegovina, a prelimillnal-r understand- 3),1 10195 and Junie 3(, 194 appears helow: tog *d as reacled in utne 1993 on the loans made to or gutaranteed by the Si-YRto be assumYnedby thlat Repub- 199 1904 lie. IUntil an agLeemrent is reached, loans henefitting R flmi-% 1wgiht niOngll thiehfi \t,al%- $ 33,3 4 s 3 I I that RepUblic are included wviththe loans assumed 'v t f t tile IRN iii accordance with tile IBR 's above-men- ptaioiont t fr loaln loxses I ? -1 tioned agreemernt w ith the i-RN. Tratnlaitton adi ustnint, 40)4 1 74 1101,3111 .L'ndof thc fiS.-d v,-Lii SI374() $3,324 At June 3(), 1995, no loans payable to the IRRD other than those refer-ed to in the folln%ving paragraphs were overdule by more than three months. I Jider- an iDA program established in September 1988, At June 3(1, 1995, the loanis m iace to or ularanteed liv a portion of principal repay menlts to the IDA are allo- certaincountries member and ,tivotithercountries- catecl on an anu1al hiasisto provide supplemilental-V IDA certFRn mema er coiitrlies c no tBsootaner countites- credits to IDA-eligible cttontries that dre no longer ahle thie F-RNadnd the RCpuIbliC of Bosnia andlHcrze ox0n'Ia- with aggregate principal ,, btIallse ofr1-ItSt2l'Idill"' to borrosv oti EBRL tcrms liut base itLtstantding liRRD s2ith an aggregate principa6l bralanlce otutstanclig of loatis apiprotiedl prior to September 1988. Stich scup- $2618 nlioii($ 36 m0illion Jti 3-I 1 cIplementarv f IDXctcclits airc allocated to coclintr-iesthat svh994i$1,41 Onillo ($11309 mcial scine 3) t IeCt specified co)n(litilins, in proportion to each coun- 19)94) was overdue, xvere in otinacertialstatcis. As at try's ititerest payments clcte that yere on its pre-Sep- scLCh elatc, overduc interest an] other char(es in tjmhier 1988 meniloa In l eli or s IDA r r 1 a > r > n rr | temi5tlt-llburI 988 immloalls. Io bt- elligble for sttcli IL1, r-espec-t of tnese loaris totaled S864 niiillioii (S6_8 m-ni- lion- June 3(1, 1994). If thesc loans lad not ieen InpInis the eligiiility criteria for leiditig, muist be ineligi- rionaccrila status, income from loans for the fiscal sear l not i;Ls be inligi- endecl June 3(, 1995 svoulcihave lieeiigher by $156 ble for (Eli L lending, and tiicist iiot have had an IRE) mi-illion($149 million-Jine 3), 1994). A Sia - rV loif approved within the past txselve months. To recei\e a stipplem'ental creclit frcini the program, a membeir cocintry caiinot be niore th.an )pt days over- clcLeon its delat-servicte paymnents to the IBR i anul tlhe IDA and iiicist have an IDA-su1pported structurirl adcljst- rneit prograin in place. As at cin1e3), 1995, the InA had approved eredlits of S11 79 tIiillion ($97,'4 million-Icine 30), 1994) cinder this program froii incep-

IBRD FINANCIAL SATEMENTIs 1 57 NOTES TO FINANCIAL, STATEMENTS (niotinuue)

tion,ofwlhiich$1,128Smillion ($84(6 millioni-Junei3), Time Deposits:Tirne cleposits include certificates of 1994) had beeni disbursed to the eligible countries, deposit, bankers acceptances, and other obligationis issued or unconditionally guaranteed bv banks and Cofinancingand Guarantees:The KiRD)has entered other financial institutions. into agreements syndicated by other finaLicial institutions either lbv a direct participation in, or a partial Futures and Forwards: Futures and forwvaardcontracts guarantee of loans for the benefit of member countries are contracts for delayed delivery of securities or or a partial guarantee of securities issued by an entity money market instruments in xvhicihthe seller agrees eligible for IBRD loans. The [BRD's direct participations to make delivery at a specified fiture date of a speci- in syndicated loans are included in reported loaLnhal- fied instrumenit, at a specified price or yield. ances. Covered Forwards: Covered forwards are agreemnents GuL-aranteesof $1 ,611) millioll at 3IUlC 30, 1995 in xw)hichcash in one currency is converted into a dif- ($ 1,181 million-Julle 30, 19394) were not included in ferenit curirencyvand, simultanieously, a forxvard reported loan balances. $173 million of these guarall- exchange agreemelnt is executed providing for a future tees w ere subject to call at Junle 30, 1995 ($173 mil- exchanlge of the tWo curr-eniciesin order to recover thle lion-June 3(0, 1994). currency conlverted.

The IBRD has partially guar-aniteed the timelyvpaymenit Options: Options are contracts that allowvthe holder of interest amounitson certain loanlsthat hav e been of the olptionto ptrcihase or seil a financial instr-uLimenit sold. At June 3(1, 1'3'35,these guatrantees, approximat- at a specified price withiin a specified period of time ing $4 million ($4 million-utrie 30, 1994), were sUb- fromiior to the seller of the option. The purchaser of an ect to call. option pays a premium at the outset to the seller of S-atuto Ldg itheoption, who theni bears the risk of an unfavorable Statutortvledng L It:tfnder th artic esso Ar- change in the price of the financial instrudmentt under- menit,the total alloullt outstandino of guarantees,par- Ivingthe option. The IBRD on1lvinlvests in exchange- ticipations in loans, and di-ect loans malde bv the [BRD manv not be increased to an amounit exceeding 1(3() traded o0tions percent of the sum of subscribed capital, reserves, and Short Sales: Short sales are sales of securities n(ot held suL-plus.On the IBRD's Balance Sheet, Reserves and in the IBRRDsportfolio at the time of the sale. The 1fiRD Surplus correspond to items lahelled Retained Earn- must purclase the security at a later date ancdbears ings, Cumulatit e Translation Adjustment, and Accu- the risk that the market value of the security svill nocve mulated Provision for Loan Losses. The IBRD's adversely between the time of the sale and the time Exectitive Directors hav e issued guidelines pursuant to the securitv must be delivered. wvhichall guarantees issued bv the IBRDwill be counlited towalrds this limit at the time they first Trading Portfolio: Investment securities in the trading bcom11edcallab, ispective ofthe likelhoo f a-n portfolio are carried at market value. A sumliiiarv of actual call At Junre 30, 1sc5, sivc total amouoct wfasi the tracling portfolio by instrutient at Junie 3(0, 1995 is zictialcal.~0 I A95,SLIII Jue otalat-oLtit Lis as follow~s: $123,676 million or 62 percent (58 percent-Julne 30, I 994) of the Statutor-v Lendinig Limit. Illillions 1995

NOTE C-FINANCIAL INSTRUIMENTS Average Net gains dails halanice fIosses) Investments A, at dLirinigtie for Tihe Jilie 30 fiscal vear fiscal year As part of its overall portfolio maLnagement strategy, GoverT1ellnet and $11,4I 9 1(1,117 SI174 the I9RL1 inVests ill governiment and agency obligations, agency obligations timc deposits, and related financial instrmenits wvith Time deposits S,5)7 8,6399) off-balanrce sheet risk including futures, forxard coil- Futures and fornards III 1(3 (26) tracts, covered forward contr-acts, options, anid shor-t Optiolns P3)

sales. Total tr-adGtino _ Governmnent and Agency Obligations:These obliga- investmenlts S19,9361 SI8,826 $145 tions include marketable bonds, notes, and othel-obli- Nct covered forw-ards S I S1 S -

gations. Obligatioins issued or Unconcditionally Repufrchalse agreements ('5(j7) (11,11 2) - guar-anteed bv goveinments cit cotunitries reqiuire a rninirnu,m credit rating of AA, if denominiated in a cur- Slort sales (7 7) (444) - ren.-y other tha.n the home cti-reilcy; otherwise no rat- Resale agreemenits 2436 1,2 1 - ing is requi lred.Obligations issued by an ageucs or instrumnelltality of a overniment of aLcountry, a1 multi- Ilnlieutes onoIunts les f/UIIIl $0.S inilli/oll. lateral organization, or ally other official enltitv recuil-e a credit rating of AAA.

158 THE WORLD. BANK ANN' 'AI RELPORT1995 A summary of the currenry' compositioni of Invest- ties Sold Under Agrteements to Repurchase and ments held in the trading portfolio, net Recei alble/ Payable for Cash Collateral Received at Junle 3), 1995 Payable for Covered Forwards, and the net of Securi- anid JunLe31,1 C19)4is as follows: ties Purchased Under Resale Agreements and Securi-

Inmillions olU..S. dollar equi%alejits I995 1994 Net Net Net Net (overed repiurcthase,s co'ered reporthiases Inestments forwards aid resales Total Ihnestmuents forwards aid.tIresales Total DeuLtschemark $ 16{i38 $ 587 $ (45) $ 2.18 $ 1,484 S 624 $ 261i $ 2,368 lapanese yen 6,872 (I 06) - 6,766 5,332 - 5,332 United States dillaLrs 1(1,449 (7.63) (2,313] 7,373 16Th ((485) (1,5I) 8,6013 Other currtencies 9)77 283 ,7 1 297 2,SI1 SS (19) ,6(172

Total 81 9,9736 $ I $(2, 21)I 1 6I1 $21 .306 S 19 $(1,3i() $1,97,

The annualized rate of returin on average investments The e\pected maturities of investment securities in in the Trading portfolio, net of agreements to repur- the Held-to-maturity portfolio at June 30, 1995 are chase and cash collateral received, held during the fis- summarized below: cal year ended June 30, 1995, including both realized and uLin-ealizedgains and losses, was 5.5S percent (3.56 In millionsil - percent-June 3(, 1994). Jute 3t), 19.95 Carrying Fair Net Held-to-maturity porteolio: Investment securities in the Xalue valut unrealizedgains Held-to-maturity portfolio are carried at amortized cost. July I, L)95througIl The book and fair values of inv'estment securities in the JUne 31.1 1996 $ 11 $ 1 is $- Held-to-maturity portfolio at Junle 3(1,1995 xvere: JUl 1 I 096 tlrl-ogh J1une3(1 ,2010) 1( 174 4 JLtIv ], 20)(0( t]irotil In miillionis Juy12))11O rusich48 JTulne31, 1995 -- Jue 31 2(H) 242 248 6 ______-- - 673 682 C) Secturities-Held-to0-maliltuLrity ~~~~~~Thereafter Cruoss Gros Carr inig uinrealized Unrealized Fairi Total 81,2133 $1,222 219)

-saloe gainis losses salilj' Governmenit - ______-- The annualized rate of retuirn on average investmiients and agency in the Held-to-maturity portfolio, held during the fis- ohbligationI $8185 $19 $8- 1, 1(04 cal year ended June 30), 1995, was S1 I percent. Time depu(sits 11 S I 8 L L:oans Toall $1,21)3 $81 8- 81 222 The table helowreflects the carryinig and estimated -______- - fair values of the loan portf'olio, excluding. the Accu- As at June 3(, 1995, the Held-to-maturity portfolio mulated Provision for Loan Losses, as at Junfe 3(J, 1995 comprised investments in Pounds sterling only and June 3(, 1994.

InIimiilliolns 1995 1994 Estimatedfair Estimatedfair Carrriig saaloe sIaLloe Carrvingvaltie valute Fixed rate loans $ 17 128 S 19,065 S 19,703 $ 21,538 Variablerate loans 1(06,137 114,141 89,551 94,234 Single currency loans 234 235 37 37

Total $123,49)9 $133,441 S8109,291 S115,80)9

IBRD FINANCIAl. STATEMENTS 159 NO)TES TO FIIN AN'CIA1 STATEMI ENTS (o e,dIrI.n/)

All of the ItRD''s loanisaire made to or ouaranteed by tilc of future exchangesof the two currencies in order couintriesthat aeit m(mbers of the IBRD, except tor to r cover the cur-rencvconverted. The combination of those loans madt to the wI-.The IBRL) does not cur- a borrowirngand a cuLrrenicvswap produces tht finain- rentl\ sell its loans nior is there a miark-ketof loanis corn- cial equivalent of substituting a borrowving in the cuir- parable to those matdeI x the uoam.The IBRI) has nvC er renfcv obtainied in the initial corn ersionifor- the original suffered a loss on inlv of its loals, although from timc borrowing. to time certain Iorrn v ITIrshaxve fotund it diffictIlt to m'ake timcly payments tor iprotr cted periols, result- Interest rate su'aps: Interest rate s ps are agreements ingloans in theirbeing platcvl in nonaccrual status, that transform a fixed rarte pavinienit obligation in a i11g 111tlaclxlit 10 s 116c11S ICplacedl 1lOICUlCI Ull Stt.tilS.-h Several borr-owvershave emer -etl from nonaceruam.llsta- particular curreiicy into a floatinig rate obligation in Seea lir-Ne- aeeegd rr olcril-a th3t curr-encvanld vice-versa. tvIs after a pcriod of timie VN bringino up-to-date aill principal payments and ill intverest pLisments, inclLid- Forward interest rate snaps:A forward interest rate ing interest and other charges on overdue principal swvapis an agreemnent under wvhich the cashi flow paviments. In an attempt to recognize the risk inhereilt exchanges of the unlderlying interest ra te sw,aps would in these ov rdtie payments the IRRL) m ainitainis a pro- begin to take effect from ia specified date. vision for loan losses. The balainteof the ACLcIiMIlatCd Provision for LoaniI Ses at JUile RI) 195 vas $374t) Deferred rate setting agreements:The IRRI1 enters into millionl (X3 324 million-dune 30, 1943. deferred rate setting agreemenlts in conjunction with some of its bond issues. These agreements piovide for Fixed rate loans: Oir loa;ns negotiated priol to JiulV pansients to he made to or- by the IFRL r-eflecting- gainl 1982, the uisRg)char-es intcrest at fixed rates. The esti- or loss on one or mor-c gocrnment sectirities or mated fair value of' these loans is based on disCOtInted related finarncial instrumreints. These a"rcnements allosv ftitUt-e cas1 ftlows Utsinl thle rate .at w hich thle IRDi the IBRL to fix the effective inteirest cost to the IRLRDof could tinidertake borrowings of comparable maturities all or a portion of the issues over a specified period of at June 3(, 1995 plus a 50) basis point spread. time after the issue date of the respective bonil. The Variable rate loans: In 1(92 the IBR' mitigated its poteiitial credit loss to the IBRID from nonperformance l~~~~~~~~~~~~~~~~iIBRI!loans t limited tot amont d1c bS_ utsetlc theael interest rate risk by movin( from fixec r.ateto v ariableu is liiiited to any imouiits due but unsettled, froi the firianicial iinterriiediary. I-owev5cr; per-iodic niark-to- r-atelendirl,, The rmt%Lha.roed on Variable r.atelo.aris is na ilitcledr H eeryiocma-t- rae-evlii.Th a e i inarket settlenients oni these age ements limit this risk. basect o11ttie 15RDLS (%%rlltost(:t Of lUalified borrov,,ings , plsI a on bthsis poinst spvnad restilti i doopass- sn i At tune 3(o, 1995 and tune 30, 194, the effective plus apoint 51) basisspread r esultiri" iii a pass- interest cost of all principal ariioLints had been fixed. tirougil of its avera.geborr owin tosts to those niris- btils that hienefit froiii 11WLiloans Since the inter-est Providiiig liquiiditv and minimizinig the cost of ftunds rate Fi-r variable ratc loans is ba sd on the interest ritte are key objectives to the lIR['s overall borrowving strat- of the qualificd hborros irig thI slir i.Jlueof Variabl cgv The IBRDuises swaps in its horrowvingstrategy tvo rate loanis has beein estimated bavsed oii the relationship lower the overall cost of its borrowings for those riem- of the fair value to the carr u-ingaloe of the Uviiderlving bers svho benetfit from IRL) ioans. The IBRD unidertakes borrowinigs. swap transactionls \ith a list of aiLthotrized counterpar- ties Credit and maturity limits have bceii established Single currencv loatis: In I 9v) the IR~Dilitr-odtlced titascuieprv single currencv loaris. The rates ch'srged on sinsle L-ur- rency loans are eqUtal toi the six-month refelrence inter- Swaps ar-e usedhto modify the interest r att ard/ovr vr- halnk offerevl rate for the applicalile cUrrerscy r-rICN! characteristics of the borrowiing portfolio arid prevailing on the semiatiliual reset cdate, plis a cost are liiikevl to the remlatecllonros vings at inception aiivl miiigiii equal to the ISm'is \\ciglhtecd average niarLgin rernairs so througiovit the ttrms of their contracts. 1'he relative to the six-niorithi Lonloll Interbansk Offered initerest comspoinent of a ss iapis recognized as an Rate oii its liorrowings funliding single currncym loans, adiLstIlicilt to the hoirrow ing cost over the life of the calctilateth for the pre\ ious semester aii( averageCL contract. UIpon tcrmiiistiori thecchanige in a ssvap's aCross cLir-eliieies pltIS a iiiterest spread of 5i0basis market valvie is recorded as In aclijtstnicist to the carr - points. Sincc the inte rest r itts for siile, innli 5-rn inig valule of the underlyirg horr owing and recognized loans are iased oii thc interest rate of qi llifiecl hiir as an adjLustmCilt of the bon-'vi inr cost over the rowMiligs, the fair s huotviLsirlO CUrt enl O11ils hnJ expected remaining life of the borro0 ing In instanices beers estimated Ibased on the relatioriship of the fair vhere the unidverlying borrovi ing is prepaid, the change valIe to the ciirying s ilue of undeilIsing b orrow ings. in the associated swap's market valuic is recoginized inimediately as an adjvistlclnt to the cost of the uiler- inyig horrovsinig iristriuriient. Borrowvings Currency swaps: Cutrrenc` sxVapsire agreeriients in The follosving table reflects the carrvinii arid estimated w-hichproceeds of' a horrow inrgIre coinvertedl ilitO a fair values of the borrow ings poirtfliio as at tune13(, differeuit curreicv atLl, simultaiieously, Lafors'ard 1995 aundJune 3), 1994. exchan,ge agreermenit is executed proviiding for a shlsed-

160 THE WORLD BANM ANN) IAI RLPR)RTI1C)9 I $)15 1tlY"4 I ti,.ittt- fair E,tji:ttl fairi,

Sholrt-ter-mil $ S3,S .5 * 5 S 3 31)4 $ 3304

M iedilium-and loiw-term 114, 5)7 113,11'!))) 5)l IS DSi)

Cuurrelne\

iabisa eIcf8 2I 149; 31() _1 4)__ Reeciahlile (10I3) (I 1) (18,2?) (1 lO7'S) Intcrest rate 1I It)

Foinsard interest rate 23 - 19 Tot.tl SI I I,6$i 5 I2 1) SIfH) 020 S1 i, S I

The estimaitei fair s aloe> arc hall -sedonI qlot,_ed Illilr\et in ol y eleirL(e ts of rLA i t r-isk ill cI ecS of thle anIiOIJilt IIIire, s\ here 5l01 priCes arlC aVailahlie. Whletre 0)O Icror-dc-d (on1tli bhalan, shcc-t. ('rodit ris;k reiresents LqIoted Olarkt I)r Is Jlailail(e tiltl' fLi alL 1iso'Sti- tilt? IllR\iilliilIl l`otelItial a, tCiiltillL4 lOss rilot tto pssi- materi t-lased oil the cost at swhirh the lI I[It outilr ilr'1air- 0ii-rftrlalll 11\ obliitrts al1ri roliIlterlartit'.

entldtiUnrirtake htlrros-inl-s %\itll >imilala terills aildi tiilrc tileterl e lsi i tilc oiltrarets Adlriitioilaii . tile 1 rmillamim n Jillatti-itiCs, LLsigL thle sena ryt1;I_\illaiket id natuLrIe of tlet I nstruimflit its illM olV e COItraL r Ct s'JItIre a11d IIIrVr.Tle falil saIILI of s;aps rlepresetnt tit- estimilatted 1Oti ilal priiilIC1 jhilsl] _tsl tilhat alre 1lot r-eflectetd InI oistof rephicini tilest contract>oil that date. thil blasi tir.inanils a tatelllelit>. For Ihotil on- and otff- Th.~.ins1e avvra" co~t Of b-)[ ro%\ ig_~ outstaiding C1111111g,the sheetllek'tWl ser tiritie thlel II I limiSit> tralrling to J Iist f[hlle a r1ar' IIfrist of horros Ill's ttirtstalrii il 4JdI tilt? ; il o-d L1t,110,-S .1 < )lIt0 l->.lties Cil-l"liCl-edit lilllitS t>t;]1~~~~~~~~~~~~~~~~t ~ auitiltiri/tri rieat'r ails rtt>R1(t("ltraris C eslit iiillit VeahIlt'year t?ilrit?d30, 1 ~ ~>0.02 pirseIl lastz1.15 e leell cstl' lish1t'1d folr iC1l1 OrliiitelrIartV 1>5't% 1"' of r'rc-t?lit lonet 31), 19(14) etiestil'g a re tittil iilsti tilcil94t alr Ila.tnfritt sttItii 5aKi ilitef~est e;pcillse ft 81 > il4litllli ($'234 nlliiil1 inelt If) I' (I ) I ac s1rt< otii\s aps. Tile 1 rcditrisik '\AtOshiI,' ;aTIr ritlltrart -aluLe/lotilallla 1iiloriiits, as JipIIrail,_ht, otf tllst? filaiirilJ illstrrllillm ts

NOTE D-RISK EXP'OSUJRE OF CERTAIN ia role 3I, I t)r5 JiC hilt? 3 1, i 904 ire gis -l itist FIN.\NCIAL INSTRI NIMENTS Fortthe ptirltisecof ris,k ilmailagilclilt, tile 11w1 is parts to a sarr t iletsaill, i;al iilstrrIllilts, k?ertalill is illiil

11l~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~( lllli-,4

INVESTNIENTS-TRADING PORTFOIO.10 Fi tntires aillrf trivarrits Lttng prtsitit)l $ 4)1i)3 . _5- ,0 Sllrt-t positioll 8)13] 4 , ) Cirerit (l'i\ trI itrirtlo rirteliltiAi it iiipt?ifoillns e e .trtillterpal Fr-ws ); it) Options Ltong plotsitit?il i I)3 ShiloUSlrositioll Los) e-ed I rtrssxarri1S

(Irerlit eNposrile Iire t(i tritelltiai iltdii)lt?rttruilali t' 1 ritilltel-partis 1'3

BOR Ro\VI NGS

(I,iric'nlc\ s\\ Iaps (Cedit t\p ilre rIrit ttt Il-teIitial IlttiO )r-rf(tfri-Iailc PI' ttilltt?r,lartirs 71 'S interest alte s\s;sas Notiolal plriiripal I1),I 6 1)R *341

Cr-edlit exph(issir-e dilte toit otelitial 1ltiilpr'r 1 rlMails 'b r nLii tr'rlar.Jtitc 7 Frir\\sai' i iltris'r t rate s\ssaps Notitnllal priilcipal 3)3) 4'i Clresit t?\1p0s Irt? rILIe tio pioteiltiall OlOIi Intrl-lalsJt-1 its' roriltr)lalrtit?s

i]RR) Fi\xN(cn.\. S' VlFTNIFNTi 1 6l N o TE S -r o F I N A N C I A L ST1 ATF E M E N T S (coitinnl)

NOTE E-RETAINED EARNINGS AND NOTE F-EIXPENSES ALLOCATION OF NET INCONIE On Febr.ary 21 1I99, tie Executive Dir-ectors Retained Earnings: Retaincd Earningis omprises the appro\ ed the expenditure of SI 53 million for costs following elements as at June 31), 1995 anid IJunte3(, assoiated with planned staff reductions At lune 31) 1994: 10995 the revised estimate fKr the total cost of this plan xas 5131 million. The reductions, to mtet changing cii- "ii"'liIliois cuit demands, are desigiedl to imllprovethe sti 's and

9) 51 -- 'lie tileI r)DXsefficiene x s hile 0 ;lIlitailline curIlreit oplletatiler Spe>tiail Re-ctest'l\t' S 2TjhZ!_ levels Fhe planned st10fftedLtiolls ar-c expeCted to Cell rnl Rcserse 13,)I1 1., 124 lower fottivi stal-s adlilnltritiv c explenses b\ anl slrpivis 226 - a110LIllt e ite r than theassociateci cost. Under this Ilnallo-ted \t Illeollic plan. approxinllt, lx 5'9) staff (nriginalilx bIuIdgetedat tml thie hisca ca1\ 1 354 1.015 I 56S staff) in Vi-iOUsdep l-tIteilltsar-e to he declaretd I;.t;dl S1 2 )'I4,468 iedtidllidalt duril ls' I \VdI 1'095 throUgh fiscal eal- 1996.It iKestimlated that nisvllentsto mileet termilnation costs from the pllanned i-eductionis xvillhe completed be OnlAuglst 2, 1994, the Exc\Lutixe Directors allocated the end of fiscal sear I9X8. As at June 30(, 1095, 285 S51)5millionilet of the it'iicllt e Ii l L1 l fiscal staFf11 I\ c htlt' inotifieL of peildill separatioll LIilderthis year ended ltne 3(, 1994 to the (jentral Reserve. On pialn at i cost of $51 Imillion. $1 million has heen Octoher (, 1914, the BoarLdof Goxetrnols appril edl a cilarL Le llamsttiue aLc-etialoft.1 13 million. lIcILideLl iil tralnsfet to the IL).\,hv \xay ot I l-t of $'(I) million in the total ctiaice oF$ 13 1 nIillion are costs associatecl all et. tiivalellt ailotililt in stIR>,otit of the ilet inilCifl& with joh Serclh assistalIce, traillilog, oLtplaceTlleilt Coll- ea;Frned in the fiscal \ear enlded Iiiie 30, 19094.On th stiti g, PeISioSl plan coiltribtitions, illedical instirance sarie dLa the Board of G x ernibrs aliso a Pppoied a Liontlribhtiot s and related tax alloaances. tralnste of $246 millilion tilt Surpltis. C)n Nxiltmer28 ()fOtile total chllarg of $13i milliol,$ 75 million has 1994, the Boar-dotf GoC'ernors appl-roveLda transfer of he ell int Ltidedin Administrative Expeilses for the fiscal S9() miillionifor Eliergelncv Assistalnce for Rxx\aila oLit year ecledtiloiite 3(1, 1099 aind$5o3 tinillion lahasbet'i of Stitrplis. ilareLd to tile I[1,\, consistenit witlh norlllal cost appor-

Transfrrs to InterniationtalDevelopment Associationz: tiOili Cit roced ts,- th 1. tle 1f:1 eilt tee for The Board of Goverilors hlasapprl.oxed e. te tiIlls- the fiscal year 195. fers to the Il);\ totaling $4,273naillioI froi(1 tinlllo- Administrative Expenses are let of thIe ilanaement cated Net I liconie fov tile fiscal staJs tiltoilIl l'ie '( fee iA S5 I lillioll ($545 liiIOll.f--ilOlt' 31) i 974) 1'93. Oil Octoher 6, 19)94 the Board of Doserilor-s cIar,ged to thie ).X anLId$1]11 millillion ($1(7) illilliLl-

ap 1 plroved aI tranll)sfer to tilt' Ill, fly Ia> otf z;i t JuneatLit311, I994) uchrgedto reirrliirs;able programils. S301)illllilli) ii a ll eqtuilalenlt aloltilnt ill 5)1, Ac ;it lIcItILIedi ill tlle 1a1oiloints cl IJ-red to rt'iillbLirsaille pro- 11 JuInet' 31, I 05,5 a transfers to the IF). hadcli'een [lidt, gramls are allocated t haries of S2 Ilmillion ($2' 1 illi- At uinet3(1 1904 S 1 )f23 ilillill0 reillaiilt LI PIXllte to lion-itinle 311, 1i04) ilir-ed to the III alnd $1 thie li A. illillioll ($1 mlillion-lune 31! 1'994) chIaiged to the

Transfrrs to Debt Reduction Facility for IDA-Onli' 1 x. Countries: Thie Boarkdof Goi crnotrsappi o\ ecl ag e (Tlltrlt-ibutions to spe,ciii Programs r'presenlt grailts ftlr gate transf.ers to thie Debt ReduLCtion FEacilitsfoi ID)A- ag icolttiraiL restart h the cniltrol of olnchoce iclasis, Ginll Couinltric'stotaiing $21) I ill iiiLl tilvl ii tllze anlLidother developmeltnl activities. 3(, 1994.At ltiie 3(1),1995, S1i5 Illillio IlTTliTled payable (SIi31 mlillin-JlLlle 3(1, 1i94). NOTE G-TRU!ST FU NDS Trans/er to Tritst Funtdfor Gaza: Tlhe Be0*rdof Goxer- ilors appioxed a transfer to the TruListl:uli fIll Ci Tile'IBRI[, atlone r lolitIX xx1 thatie' IJA, atmiiisters tl h!v x x of ' Jlilt. totaliilg S3( iIi tlliroLi h lutIIe O, bellait of tionors,dlt tidll' ilemebt'rs, their ageilcies 1911!4At ine'311 1 015 $i'>2 illioi reimlined pavblhe and othe-r entitits, ftlnils restrictekd for specific Lises ($5(! nlillioii-lntiie 3O, 19W)4). %hiiih ililtide the cotfIilaiilti of IlRL)leiltliilg protjects, debt re.dUCtitiol oLraptionls ltl- IRI,) meillltrs, techilical Transfer for Emlergency 4AssistanLcefor Ruwanda: Oil assistaIlIce for ilaor (15 cr\s ilciLlillng felsibilitv studies Novellber 28 1994, the Board of oxerinors ald prlic'ct plreparatioln global aild tegiolnal programils approveti a tral "stel of $21) milillilnftol- iFmller-Le lcv ,ii research anlittraimii prfurillds filese fuis ar-e Assistance. ttr Rwvandaotit of Sutrpxlis.At June 3(!. placecl in toiast alnd art inot illcltlded in the assets of the 1995 $5 millionI iireliaileld p a\ able.

1(32 TP IF W(Roi,_i BANK ANNI 1,mIRi IO(R' 1 9`-) [BRD. The distribution of trust fund assets by executing Net periodic pension cost for the [ARI) par-ticipants agernt is as folloss: foir the fiscal vears endled Junie 30. 1995 an1idJunie 30.

19t95 P194 1994 consisted of tht following components: Toltal Totll h[( LCiiary NLiuimbrc iiijars Nuliiiber Inl ittilliois, a.sets of trslt assets of trustl iill hiiid (ill h,illd 1995 1994 m11illionls) alCotliltts iliill oisl) at .OLuIts Ser ice cost-benefits earned IBRD duiring the fiscal year $ 186 $ 185 exectited S645 1,294 S433 1, 2 28 Interest cost on projected benefit Recipient obligation 348 310 executed I,271) 684 793 639 Total $1,915 1,978 51 226 1 86- ACtual return on plan assets (428) (34 2) Net amortization andl deferral (3) (50) The responsihilities of the tIRD undler these arrangee- ments varv and range from services normally prnvided Net periodic pension (ost $ 103 S 103 uLider its own lending projects to full project iniple- menatationiincluding procuremiien1tof goods and ser- The portioni of this cost that relates to the IPRD and is Vices. During the fiscal year 1995 the IBRDIreceived incluided in Administrative Expenses for the fiscal year $19 millioni (SI 7 million-June 30, 1994) as fees for ended June 30, 1995 is $65 million ($63 million-June administering trtist funds. These fees hase been 3(, 1994). The balanice has been incltided in the man- recorded as a redltiction of administrative expenses. agement fee charged to the IDA. The following table sets forth the Plani's funded status NOTE H-STAFF RETIREMENT PLAN as at June 30, 1995 and JuLne 30, 1994: The ItRD has a defined benefit retirement plain (the Plan) covering substan1tialIV all of its staff The Plan lii1995 1994 alsn Covers substan1tially ali the staff of thle 1rC and the \1I(;\. UJndlerthe Plan, benefits are based oni the years A,tvia,iAlpresnt aluc 0,t hb'iisot of contributory service atid the highest thl-ee-year ,IIgait.. I, average of pensionable ren'uliei-ation as clehinL in the A-unii,it,'J ,Vhi,gtiunl,ht Plan, svit the staff contribuiting a fixed percentage of VestedI $(3 511 S(3(S,1i1 pensionable remuneration, and thle [BRrAContribUting Nu,imsticd 1221 (431 the relmlailnCderOf the aCtUariallv determiinaed coist of Sulinalt (3 5T3) (3,135) future Plan tInefits. The IlARDUses the aggregrate metlhod for deteriniiniig its contribution to the Plan. Ffectio pro ecitc .oml11'saIutiml level; (I ,8i9 (1 743) The a11muIntof that contributioni approximates the net Projttcs brunt ibligatittn [5.4381 (4,878) periodic pension cost as detailed below. All coutribto- PATIalssets aIt WilLie 5111U tions to the Plan an(d all other assets and income held Pli- tets, in \es\esof pieit'de for the purposes of the Plan are helcl bv the ItiRDa sepa- c oligk,n1,; .dti.oi; 486 5 rately from the thier assets and iincomle of the IRRD, Reminin'g'un-*oiiizeJ nr¶ IDA, 1(, atMd ICdA arid can bCeusecd (tub' for the benleit irjflnitiOIi a.3t Ii)4) III of the participants in the Plan and their beneficiaries t Ji;re.o' nii,'OlO Sri soi 82 91 uintil all liabilities tn them have been paid onrprovided 1 ii ii,'iwif gin lio;11ipad for. Plan assets Consist primarily of equity and fixed \I;crwio diireio; fiTiie tllit iniionae securities, sith smalle- holdings Of cash, real as!,LHI;l1pti.Is (41.4) (483) estate, and othe r investments. P'rCnlpadpeii;oi to S I) S 1)

The weighted-as erage discoutnt rate used in deterinin- ing the actuarial present value of the projected benefit obligation xvas 8.25 percenit (8.25 percent-lutne 30, 1994). The effect of proiected compensation levels was calCulated based oni a scale that provides for a decreasing rate of salary increase depending on age, beginnitAg with 12. 7 percent at age 2(0 and decreasing to 6.2 percent at age 64. The expected long-tern) rate of returni on assets was 9 percenit (9 percent-June 30i 1994).

IBRD FINANCIAl. STATEMENTS 163 NoTES TO FiNANCIAL STATEMENTS (continued)

NOTE I-RETIRED STAFF BENEFITS PLAN The following table sets forth the RSBPs funded status The JBRDhlas a Retired Staff Benefits Plan (RSBP)that zasat lune 30) I95 and-June30 1994 provides certain health care and life insurance benefits n iflins to retirees. All staff wvho are enrolled in the insurance programs while in active service and w-ho meet certain 1995 1994 requirements are eligible for benefits wtihenthev reach A.ctiLml ated postrtir emIIenIt b enefit early or normal retirement age while working for the

IBRD. Ihe RSBF' also covers the staff of the 1Fr and the Retirees S('5 | )295) NIIGA. hlil eligible acti e plan1 par1ticipalnits (1 1 l

Retirees contrilbute a level amount towvard life insur- Other acti%e plait participants (292) (297) ance based on the amount of coverage. Retiree contr-i- (0-74) (644) butions toward health care are based on length of Planiassts at lair value - 7 service and age at retirement. The IBRD annually COn -co- tributes the remainder of the actUariallydeterminied Planassets in excess of accuosilatecd cost for future benefits. All contributions to the RS1p rostrctirement henefit ohlicatiot 96 5S and all other assets and inconie held fo- purposes of I lrnecoganizeclprio ericer\ costs (14) (16) the RSBPare held by the [RLRDseparately fi-omth othier Unrecoginizednet loss troits past assets and iicome of the [IR), IDA, I[C, and MIGA and experience ldiffen.t f-oiomithat sstinied can he used only for the benefit of the participants in aindfroln changes in assollnlptii(! 2 S( 2"6

the RSBI' and their bencficiaries until all liabilities to PCepaLid nostr-etirmentet benefit c(st $ 332 $ 338 them have been paid or provided for.RS13P assets con1 - - - sist primarily of fixed income and equity securities. Of the $332 million prepaicl as at June 3ff, 1995 ($338 Net periodic postretirement benefits cost for the I[RD mil]ionl-itne 3(0, 1994), $301 millioll is attributable participants for the fiscal yearsended June 30,1995 and to the IBRL1 ($311 million-June 3), 1994) and is June 30 19194 consisted of the following comnponents: includedl in MiscellaneousAssets on the Balance Sheet. The remainder has been attributed to the lc and the MKtiA. InImillions 1995 1994 For June 3(), 19(95, the acctumulated plan hentefitobli- gation (APBE) was determinedc using healtI care cost Service cost--benefits earned trendl rates of 11 2 to I .1 percent, decreasing gradu- during the fiscal year S 28 $ 25 ally to 5.1 percent in 201(1 and thereafter. The healtht Inter-est cost on accLinumulated care cost trend rate used fo r June 3(0, 1994 was 12.2 to postretirenenit henefit 16.4 percent decreasing gradually to 5.8 percent in obligationl 48 39 2()] () and thereafter- Actual retur-n on plan assets (4(0) (49) The health care' cost tr-end rate as.sumptionllhas a sig- Net amniortizaitionia*icl deferi-al 1 19 nificant efftect on the amounits repotrted. To illust-ate, increasinig the assurneed health care cost trend rates hy $ 37 $ 34 one percentage point woould increase thle APBE as at Junae30, 1995 by $1 38 million and the net periodic The portioni of this cost that relates to the IBRD and is postretiremrcot benefit cost for the fiscal year by $19 included in Administrative Expenses for thc fiscal year million. enided Junie 31), 1(95 is $23 miiillioni($2 1 milliton- The weighted average discount rate used in determin- June 3(, 1994). The balance has been included in the t7 p t . ~~~~~~~~~~~mgtile APF-( waS 7.5 percent (S _5~percen1t-Junae 30U manageme1(nt fee chariged to the lDA. 1'4994). 'Fle expected long-term rate of returln on plan assets was 8 25 percenit (8.25 perccent--Jutne 30, 1994).

164 TiiE WORio OBANK ANN [Al REPORI1995 REPORT OF INDFPENDENT ACCOUNTANTS

PriceWaterhouse TheHague NewYork (InternationalFirm) Beijing Tokyo HongKong Washington London

Price Waterhouse 0

Juil 26, 1995

Presidenit aind Board of Goverinor-s International Bank for Reconistr-uctio n and Developimenit

In ouir opinioni, the financial statemenits appearing on pages 14() thl-ouAil 164 of this Report present fairlv, in all material respects, in terms of U-Jnited States dollar-s, the finiancial position of the Interina- tional Banik for- Reconistructioni and Developml-enlt at Julle 3(, 1995 and 1994, anid the results of its operations and its cash flowvs for the years theni ended ic confornmity ith generallv accepted accoulit- ing priniciples in the LUnited States and wvith Inter-niationial Accountiiig Standrllds. These financial statemenlts are the respolnsibility of maniagemiienit of the Inter-nationial Banik-for Reconistr-uctioni alnd Developmenit; ouIr responsibility is to express ani opiniioni on these finaincial statemelits based on oui- audits. 'NWeconiducted otir audits of these staterelinets in accor-dancLe \\with generally accepted auditinio staindar-ds, includin,g, International Standicards on Auiditinig, wvhich reqiuire- that we plan and perform the atidit to obtaini reasonable assurance about wvhether the financial statemenits are free of material Imlis- statement. An auicdit includes examiniing, on a test hasis, evidenice stipportiig the amouLints and disclosures in the finan-cial statements, assessing the aCCouLntilngprinCiples used ai-d significant estimates miade by mnnageiienit, and evallatigli the overall finanLcial statemenit presenitation. We believe that our audits provide a reason able basis ftor the opiliiiOl e\pressed above.

As descr-ibed in the Stimilarv-y of Signifianit Accotiniting and Related Policies in the Notes to Finalclial Statemilenits, the Interinationial Banik for Reconistr-uctioni and Developimlent c_1liangedits method of aCCouLItilg fo-r the offsetting of amolun1ts related to certain contracts duiring the xear ended JuLne 30,

I F [

IBRD FINA\(-IAI . SI A l ,\EN IS1

SPECIAL PUIRPOSE FINANCIAI. STATEMENTS OFI HE INTERNATI IONAL1 DEVELOPMENT ASSOCIATION AND) SPECIAL FUND

Statements of Sources and Applications of Development Resources 168

Statements of Changes in Accumulated Surplus 170

Statements of Cash Flows 171

SummntaryStatement of Development Credits 1 72

Staternent of Voting Pouwer,and Subscriptions and Contributions 176

Notes to Special Purpose Financial Statements 180

Report of Itdependertt Accountants on Special Purpose Financial Statements 188

IDA\ \NI, SIlt( I \i Ft ND) FIN\N' 1.\I S I I\ \11N IS I67 STATEM,JENTS OF SOURCES AND APPLICATIONS OF DEVELOPMENT RESOURCES JliEm 30., 191)5tij huium30, 1994 Expressedlibi mllinus of U.S. dol/rss

1D.A Special Flld

1Y935 15194 1995 1994 Applications of Development Resources Net Resources Available For DeveloprmentActivities Cash and investmentsimimiediateiv available for disbursenmeint Due from banks $ 43 $ 65 5 1 $ Obligationisof gosernments and other officialentities- Notes B and F 1,851 1,3(8 5 Obligations of hankisand other fina-ncialinstItUtiolns- Notes B aindF 2,257' 8X7( 333 267 Net (payable) receivable on insestment securities transactions-Notes B and F (1 28) 116 4,02O3 iy4 2 334 27'4 Cash and investments not immediately avajilablefor disbtirsemenit Due fronmbanks 3 2 Obligations of go%ermilelits and other offici.al enitities- Notes B and F 93S 136 Obligations of banks and othel- financialinstitutionis- Notes B and F 402 5')1

1,343 39 - -=

Restricted cash and notes 73 71 Nonnegotiable, noniiterest-bearing demand obligaLtionis 23.6 77 21,548 - 33 Receivable from the Internationll3Bank for Reconstruction and Developnient-Note D 1,023 Other-resources, ne t 1 '53 95 Total net recoul-cesavailable foi development activities 29,269 25,8(31 334 307 Resources UTsedFor Development Credits (see Summary Statement of Development Credits, Notes E and F) Total deselopmernt credits 98,285 87,880 - 21 Less oLnLlisbur-sedbalance 2i, 253 25,(7( - 21

otal resour-ces used for development eredits .)' 62,81) X- -

Total applicationsof developmentresources $101,301 $88,611 $334 $307

168 THE \NVORLDBANK ANNuAi, REPORT19(95 ID)A Specil) Fund

1995 1994 19t) 194 Sources of Development Resources

N'lember subscriptions and contribLutionis (see StaLtemenitot Voting Powei;, and Sulbscriptionisand Contributions, Note C) Unrestri.ted $ 9 2,485 s89,2 58 $203 $2u) Restricted 27 286 Subscriptions and contributionis committed CD, Tt) 89,544 2(3 2)06 Less subscriptions and contributions receivable-Note C 6,739) 11, 1 8 G Subsca-iptionisand contributions paid in 6,033 8,358 2i)3 2()6

Deferred amounts receivahle to maiLItain vI nle of curLr-enc holdings (218) (217)

Pavmelnts on accoulit of pending meml crship-Note C 9 L) Transfer from the International Banik for- Reconstruuction and Developmenit-Nlote D 4,5S1 4,176 CumulatiVe traIslation adjustment on development credits S.SB2 4,807 Accumiulated suL-plus(see Statements of Changes in Accumulated Surplus) 1,864 1,264 131 01( SecuL-itiessold under ag-reemilentsto rcpurcahase an1dpayadble for casl collateral reccived 21)9 214

Total sources of development resources $101,301 $88,611 $334 $307

The Notes to Special Purpose Financial Statements are an integral part of these Statements.

IDA AND SPFCIAi. F NL) FINANCIAL. STATEMENTS 169 _r mr | '> - r, - | -ti

kit ~ ~ -tr~ f} r

r_ > tr,rJ 1~ Cl _C - 'rI:

r C 2J

UJ ' , -c

2 r-D I

r~~~~~~i 2 -. C1Cr_S_

_f U9 *r * 2 !c : 2 STATE;MENTS OF CASH FLOWS

For,tlhe hsc-alveanr- em/ed luie 30, 19 olimul /lOt'e 30, 1714 EBpr'estedill ilionlliwsof US. I/lit/r

ID!\ SItN al I tL11d 199>l5 199t4 I 5I')5 1994 Cash floWs from dCevelopme1ntactiVities Development credit disbursements (5,70(1)) $(5,520) $ (3) $(1 1) Development credit prinicipal repa nient.s 493 420 Net caslh usecdin development activities (5,207) (5,1(1)) (3) (11)

Caslh flows from memlber substcriptions and contributionis 5, I1,4 3,9L1)( 33 16

Cash flownsfrom IBRD contributions 1,427 452

Cash flowvsfrom operating activities Changes from operations 196 3 1 2 1 8I Adjustments to reconicile changes fronm operationis to net cash provided by operating activities Amnortization of discount on1subscriptioni advances 11 9 1 Net changes in other development resources (28 I) 163

Net cash (used in) provided b\ operating activities (74) 21)3 22 18

Effect of e\change tate changes on cash and investments immnnediatelvavailable for disbuL-semrenCt 278 122 8 (1) Net increase (decrease) in cash and investnielats imnmediatelx available for disbursement 1,598 (363) 6() 22

Cash and investments immediately available for disbursemIent at beginninig of the fiscal vear 2,4295 2,788 274 252

Cash and ins estments irmmediately available for disbursement at end of the fiscal veal- $ 4,(23 $ 2,425 $334 $274

Supplemiienital disclosuL-e Increase in ending balances resulting from exclhanlge rate fluctuationis Development credits outstanding $ 4,(1'7 S 1,542 Receivable from the IBRD 90() 6()

ThzeNotes to Special Purpose Financial Statements are an integral part of these Statements.

IDA ANI) SPECIA, Ft ND FINANCIAL STA I'ENIEN-IS 171 SUMMARY STATEMENT OF DEVELOPMENT CREDITS June30, 1995 Expressed in millions of US. dollars

IDA SpecialFund Total Percent- age of develop- Total UndisbursedDevelop- Total UndisbursedDevelop- Develop- ment develop- develop- ment develop- develop- ment ment credits ment ment creditsout- ment ment creditsout- creditsout- out- Borroweror guarantor credits credits' standing credits credits standing standing standing

Afghanistan $ 75$ - $ 75 $ - $ - $ - $ 75 0.10 Albania 223 126 97 - - - 97 0 13 Angola 281 214 67 - - - 67 0.09 Armenia 157 75 82 - - - 82 0711 Azerbaijan 83 83 ------Bangladesh 7,380 1,589 5,791 7 - 7 5,798 8.05 Benin 699 207 492 13 - 13 505 0.70 Bhutan 31 8 23 - - - 23 0.03 Bolivia 1,180 442 738 - - - 738 1.02 Botswana 12 - 12 - - - 12 0.02 Burkina Faso 872 276 596 - - - 596 0.83 Burundi 839 229 610 - - - 610 0.85 Cambodia 110 53 57 - - - 57 0.08 Cameroon 515 57 458 - - - 458 0.64 Cape Verde 63 32 31 - - - 31 0.04 Central African Republic 507 85 422 - - - 422 0.59 Chad 551 170 381 - - - 381 0.53 Chile II - 11 - - - 11 0.02 China 10,061 3,200 6,861 88 - 88 6,949 9.65 Colombia 11 - 11 - - - 11 0.02 Comoros 86 23 63 - - - 63 0.09 Congo 182 - 182 - - - 182 0.25 Costa Rica 3 - 3 - - - 3 C6te d'lvoire 918 205 713 - - - 713 0.99 Djibouti 55 7 48 - - - 48 0.07 Dominica 14 1 13 - - - 13 0.02 Dominican Republic 18 - 18 - - - 18 0.02 Ecuador 27 - 27 - - - 27 0.04 Egypt 1,418 420 998 - - - 998 1.39 El Salvador 21 - 21 - - - 21 0.03 Equatorial Guinea 61 6 55 - - - 55 0.08 Eritrea 28 5 23 - - - 23 0.03 Ethiopia 2,129 610 1,519 - - - 1,519 2.11 Gambia,The 198 35 163 - - - 163 0.23 Georgia 111 79 32 - - - 32 0.04 Ghana 3,444 1,158 2,286 52 - 52 2,338 3.25 Grenada 8 - 8 - - - 8 0.01 Guinea 1,102 237 865 - - - 865 1.20 Guinea-Bissau 264 51 213 6 - 6 219 0.30 Guyana 296 96 200 - - - 200 0.28 Haiti 546 164 382 15 - 15 397 0.55 Honduras 548 164 384 - - - 384 0.53 India 22,847 5,167 17,680 78 - 78 17,758 24.65 Indonesia 766 - 766 - - - 7,66 1.06 Jordan 70 - 70 - - - 70 0.10 Kenya 2,426 459 1,967 55 - 55 2,022 2.81 Korea, Republic of 84 - 84 - - - 84 0.12 Kyrgyz Republic 234 139 95 - - - 95 0.13 Lao People's Democratic Republic 465 175 290 - - - 290 0.40

172 THE WORLD BANK ANNUAL REPORT 1995 IDA Sp-utiFlFitd Total

It, cot-

age of

iotol I Idlti)lI erie D1 T.Iot-11ml1 I',idi1-ureld Dc,veltit- I )e lopment dit e,lp- (let,elo1t- 11tiitt tlc ptldp- cictrelOlt- tllelltitiit iiedit, 11 I1llellt (-e'l it, olnt- llnvnt Ill,'lt , red it, ot- {redit, ouit- oul1- iiiorro-er citgutariinto,r - d-cit credit, 'tatndilog * -rdit, credit, trant inig 'tattdiitg stadiug

Lesotho - 236 $ 83 S 153 $ - S $ - $ 153 0.21 Liberia 115 3 112 - - 112 ( 16 Macedonia, formier Yugoslav Republic of 145 1(H0 4'5 - 45 (06 Madagascar 1,429! 341 1,1)8(1 43 13 1,123 I 56 Malawi 1,653 386 1,26 2( - 2(1 1,287 1L79 Maldives 5- 19 36( - - 36( (1.)5 Mali 1,12 267, 861 16 1i6 877 1.22 Mauritainia 4 7' 14S 33(1 - _ - 33( (1.46 Mauritius 17 1 - - 17 (1.112 Mongolia 97 4() 57 (.18 Morocco 34 4 34 8 .5 Mozambiqjue 1,6-- SI) 848 - - 848 1.18 Mvanmar S41) 7) 21) - S()0 1.14 Nepal 1,477 454 12)32' - 1,()23 1.42 Nicaragua 442 162 2S0( - 2() 0- (1.39 Niger 749 138 (611 - - 611 (1.85 Nigeria 131 705 226 - 226 (1.31 Pakistan 4,9Q67 1,i27 3,340: - - 3,340 4.64 PIapuaNew Guinea 111 III - - 111]H (5I Paraguav 36 36 - 36 11.05

Philippines 294 1111 184 - - 184 ().26 Rwanda 733 232 5i)1 - 5(1 0.70 St. Kitts and Nevis 2 - 2 - 1 St. Lucia 12 0 (i - - 6 0.(1 St. Vincenit and the Greniadinies 4 2 2 f. 6 8 1U.1)1 S'o Tome and Principe 75 22 53 - - 53 ().i)7 Senegal 1,5()(1 400 1,1()27 77 - 1,127 1.37 Sierrai Leone 31)() 171 21) - - 219 ().3(1 Solomon Islands 4(0 14 26, - 26 (0.1)4 Somalia 448 448 - - 448 0.62 Sri Lanka 1,955 480 1,475 - 1-1,474 5 2.o SuLdan 1,303 I,303 I - 15 1,31 8 1.83 Swaziland 6 6 - i6 1.01 SyriaLnArab Reptublic 44 - 44 _ 44 11.06( Tanzania 3,0)86 9)06 2,11)IO- 2,18( 3.03 Thailanid 1(2 - 102 - - 1()2 11.14 Togo 650( 125 -72 28 - 28 553 (1.77 Tonga 6 1 - - 5 0.0(1 TuLnisi i - 51 - - 51 ().(7

Turkey 133 133 - - 133 ) 1.8 Lloanda 2,592 8(18 l1784 - 1,784 2.48 latiiLizatui 19 5 14 - - 14 (1.()2 Viet Nam 858 625 233 - 233 ().32 Wester-n) Samoa 51 4 47 - 47 (.1)7 Yemeni, Republic of 1,144 323 821 15 15 836 1.16

IDA AND SPIIAI. Ft IND FINANCIAI. Si Al E.\IENTS 1 73 S LI NI M A R Y S T ATEM E N T O F D E V L L O P M E N T C R E D 1' (coommiii'/) 1,,,,ti .30. 1C)93

Fxpw.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~sed~ ~ ~ ~itt ~~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~I 't IPAZ-t spe,iat .t ill ,, tl .s Tllilli,Zzslli

_ ~~~~~~~11 vlop de elp on -dit, Tambia I114,d,2b--428 8T -d D op1 ,lop

Zin-babwe 509 I 64 345 - -- 'i 4 5 ().48S

Subtotallnumcber-s 9719 )J-6 I 9)_ I1.476 49i2 -- 4 71c3 09. I \Ves,t AfricanDL)e\cIopmcnt BLlink 2 38 36 32-3

Caribbeal Deselopmeitt Link 4 8 24 24- - 24 .13

Subtotalre9i(tnal dc%elopmeC l]lt

banks11 I516w6) 1 56 - - [1.H)

Zamlio.3oth()tber'I' 1.1)41; ' IXS -l 1/"D1 (S220 91)1 millii-howrN 3>(),004)_3.i 1(4 )4 Tocait-2.i'11w.wilebpiw ie 3( I wdit-on,zl- th t)r (pit"3nji, $7 1ml - F)a-. 4349l1 .- C1 l Irre =\k1b Nigc 849III=I_ 721I'),O.t' . ]' '

.3 TlwriSh(en.lopon v(eerrlaell3awIM ; 1'll-l 4SGwla '-4 tritii~o'-4 c Um-I =ilgm`.- Iit Sae '4d1))pll Touta-11,uite3(, I1994 $887,42382 5,7 8~62,353 8478I .82 454 $6)2,Ill

ci')intlier Ca lS S- S 1)()

4.Rcrcson-tile¢dw1',pm,,w c Sit.1rd' tol h1131 wall'o^ .' ficm1 tci pep woc) (4)Iona ' $.'-i,(pri tMm 15>)( No/ IFs

Totil-.im(S711 ,88imfi.m l' e. I 1004)$S ind S('' o).( 04 mSlw$q (o2l I4>mi

undertr1wt Spc(fial/Z-zl h'lbEZImiounl.'1{ /)'s WPOON){IVO Io thIc/D. (s4clit-f.*Nwt o , Sp,(ived P'osli2rpof Pinmfitilzet Stato) w,t/N'i, E$9).

I 7-4 Ti ii: 'iVoi,iw BA- \(K ANN( l'l't !,\u tIiR l I( 9c[ Maturity Structture of Development Credits Outstandinig

Period IDA\ SpCIiIJ ILitid Total

Jul 1 ,1995 through Jun-e 3(1, 199( $ 6(7() $ 5 $ 675 July 1,1996 through June 30, 1997 67(1 675 JuIy 1,1'99)7thrOugh June 30, 1998 761 5 7(16 July 1,1998 through Junle 30, 1999 9!31 5 936 July 1, 1999 througlh June 30, 200(0 1,)94 1(099 July 1, 2000 throtugh June 30, 2(-05 8,892 3) 8,931 July 1, 2005 througIl June 30, 2010 11,95 75 1 2,0)70 July 1, 201(0 th-oughJune 30, 2015 13,534 75 13,6(1( JulyI 201521 througihJunle 30, 2(02) 12,340 75 12,415 Jul 1,2020 through June 30, 2(025 1(0),206 75 1(,281 July 1 2)5 throughJunle30, 203(0 7,147 75 7,222 July 1, 203() throtIgh June30, 2035 3,(037 53 3,0)90 JtlI 1 ,2035 throughi June 3(0,2038 263 - 263

Total $71,54(1 S492 $72,032

NOTE I IInthle StiteIuzelts of Sources . id Applicaotinisoj De velo)ene t Resourcesait lone 3(, 1')'-) iot;I,tle derslopmi t creditsdtslburse,I (40l outstandbigof $72,032 olzilli,,n($62,810 ilnoji-Juie,30, 1 994)]iclu,lclevelopmeo t crnhts oult0t,in,h mg of $492 itiilliol ($4 77 milim-how-e 30, 1'994) uhli7h c rec origiwited nwder the SpecialFu'id, silnce such am, otll., eirc repxl'blIe to the IDA (see Notes to Special Purpose FiiiamncialStatemenwts-N'ote E).

The Notes to Special Purpose Financial Statem?entsare an integral part of these Statemnents.

IDAAND Sl'F(-IAI. Ft ID FINANCIAI STATENIENTS 175 STATEMFNT OF VOTINGC POVER, ANED SUBS(CRIPTIONS A ND CO NTR I B UTI 0 NS

how, 1 0. , I 9 LSpr'ss'eI in m Ui/l•if,rs ,

SMlI,& riptionIi midt) NuIllIler I'v-culiatgc (,e ibriutiioni, SpItial Iulid Membelr, A,-tcntv Io-1rtl msilmitt'-d mtrSaibuvtion'

Part I MNembyers

Australia 136,49 1.34 1,522. $ - Austrial S, I4'! 6)37 8.3 -- hd 1 u n 2(,()S87 1.18 1, 7.9() 49.5 Can ada 39)558 3.95 3,821.4 158.3 D)enu]il;a-rk 9859s'2 9.9)7 1,1'8." 34.

Filind 7)) 199 '(.6 63().I -- Fra-nuc 42(),5)34 4.13 (6,4-1.5 149.4 Germane 7l')12 ,871 69.')i 1, (),li)2.1 -2 Ic- I;iand 24,438 (1.24 1.1 - I .t;l1J ~42''2' (12.2) 1()1.3,

Italv 259,449 2.55 2,9 3.6 911 Japanll I,)(71,214 1().51 2, 488. - KwI\N.it (6'9,83.4 (1.69 6149.1 -- I .ul,enihntrt)g 25,738S (1.25 59.6 -- Nctherland1X1s 79 1)34 2.1(i 3,461.4 New Zealand 3)) ().129 1((4.7 N'rwa\ 7!99 m 697 I,)29.4 4().() Por(til'al 24,1 -9) 924 _4 .() Russiai 28 2) (.28 15.7 - Sothi Africa 3i)) )1N (1.-R) 2

Spallin 543fl8 (.53 431.1 - Sweden 2)13 mm6 2 ()() 2,249.3 74.1 Swiitzerland X87 ( IN I ,(35.4 - ImunitedAr.ah Emirates I 'n (-.3)7 5.6 IUnited Kingdom 5IS,()46 5.1)8 6,56).1 I Inited Statts I ,563,)136 I 5.34 21I 3 .5

Stbtoutll 'alrtI MN-mihers (3,28,72 61.51 80, 525) 5Q9h.4

Part 1HM\lembers

Afth+aniktan 13,I5. (1.13 1.3 - Alhalli 1!,711 . 19 1).3 - A pen.a 21),101 (It.26 5.1 Angola 45 ,66 (1,45 C,) Ar-gentina 96,5(13 (1(5 58.)) -

Arineila 5S4 ((.)1 () - A\erhaijLan 1 14 ().()1 1..1 - Bangladesh 59, 7'6 ((.59 73- Belize I 7,7.8 (()2 ((2 -

Beniin 5,2 ( ((5 (). - Btan 12,233 I (L) (2.| =

Boltsiv 1a 23,751 (.23 1.4- Bra;zil I(,74 52 1.64 94.3- RPIrkinaFahs 1),(35 ().1' () -

17 F-STIlWORI j) RA\NKANN) Al RF.1P()RI19905 IDA

Suile,,riptioin, on1d( Numrrbeir ert, entage (ointrihution SpeI, ia'l Fundi( \Iember' of voter ,, trotal (Iomnimti d ontribUtiOi.,1

Eur-undi 2271()2 O2 $ | () '1.0 - Cambodia 82( ((.08 1.3 Camerooni I 8,633 .18 1 .3 C(rpe V-erde 4,948 (.)3 0.1

Cerntral African Republic 1,920 (1.11 (0.6 - C(had 1 W(l) 0().11 1.6 Ch ile 31,782 0).31 4.5 _

China 20)8,63 2.I2 39.7 -

Colombia 34,3R(1 1).34 225 Colliol-cos 13,141 ().3 I

Conioo 6,158 ().()7 1'.(i - Costa Rica 12,323 0.12 0.3 - C6te dlvoire 1 8,26(7 (1.8 1 ^ - Croatial 2 8,811 (S.28 3.5 _

Cyprus 2 32 0.27 1.1 -

Czecih Republic 40.518 ().4() 23.9 - Djibouti 532 O1.111 11.2 - Dominica 13-,1)11 11.15 (,1 Dominican Republic 23,496 12 5 61.1( -

EcuLa]dor 23,34 11.2 i3 0.8 -

Egypt 47,44 6 0.47 6.7 -

El Salvador 6,244 11.11() 0.4 Eq uatorial Gu inea 6, 1 (i ().)(i (1.4 Eritrea 2 3,326 ().23 11.1 - Ethiopia 21 353 0.21 0.

Fiji (,981')Sl.(7 II.? -

Gabon 2,0)3 (1.1)2 ()(0. - Gaambia,The 13i,2 211 (' 1.3 Georgia 22,32 11.22 11.0 Ghana 22,131 1.22 3.1)

Greece 315,42') (0.36 1 8.1 - Grenada ,3 (1.1 '9 (). I - Guatcmala 25,473 (1.23 0.5 Guinea 7,2283 (.2 1.3 G,uinea-Bissau 3 )35 (,(' ().2- GuaNa,an I 8,() 11.1 1.() Haiti 1 ,143 ((.17 1.1)

.1lou11-as 21 431 ((.21 0.4 - Hugar 77,4(184 (.7(5 3^6.6 - In1dia 3 9,834 3.14 25.1

Indonesia '0 ,2p51 ().97 14.8 Iran, Islamic Republic of 15,43. i 57

Iraq ),4117 (1. 14.I) -

ISrael 2(1 261() 1.21 2 - lordan 24, 62. (1.24 1.4 Kazakhstan S0O 0.1)1 II.8 Kenva 25 (761 ((.23 2.9 - Kiribati 4,777 11.113 I.] - Korca, Republic of 41,411 11.41 117.3 Kvrgvz Republic 981 ((.11] 1I,R

IDA ANI) SPEIAL. F INL) FINANCIAI. STATEMENTS 177 STATEMNENT OF VOTING POWER, AND SUBSCRIPTIONS AND CONTRIBUTIONS (conhtimUed} June 30, 1995 1 1:x;Žresseclii tmillions o( U.S. u l tlrs

IDA Sihstiriptionsand Nuiiilbere Percentage (mitributions SpecialFtiiid Memberlo v4fotes of total commilitted contribLltitions

Lao People's Democratic RCpubli- II . 23 0.12 $ 0.6( Iatvia3 614 (),() 1 0.7 Lebanon 8,562 0.08 (.6 ILesotho 2 ,81!9 0.23 0.2 I.iberia 22,771 0.22 1.1 Libya ,,771 (3.118 1.3 Macedonia, former Yugoslav Repttblic of 15,759 (.15 1.0 Madagascar 11,198 0.11 1.2 Malawi 27,352 0.27 1.0() Malavsia 411,053 0.39 3.6

Maldives 22,9(04 II 22 * Mali 22,4(7 0.22 1.2 Marsiball Islands 4,9)6 (0(.5 M%bauritania 1(1,885 (.11 0.6 Mauritius 28,664 ().28 1.2 Mexico 73,491 0.72 130.0( Micronesia, Federated States of 1S,424 0.8I Moldova 612 (0.01 .7 .Mongolia 5,039 ().05 0.3 Miorocco 47,0(366 (0.46 4.( ) Mozambrique 6,268 ().1:)6 1.7 Myanmar 36,659 0.36 2.') Nepal 25,966 0.25 0.7 Nicaragua 24,627 0.24 0.4 Nige,er 16,54-1 (1.16 (1.7 Nigeria 8,27 0.(0S 4.2 Omani 24,751 0.24 0.4 Pakistan 93,288 (1.92 13.7 Pariama 5,657 11.06() Papua NewvGuin1ea 13,35(1 (0.13 1.1 Paraguav 11.419 ()1.1 111.4 - Pel-u 12,813 0.13 2.2 - Plbilippines 16,583 0.16 6.5 - Poland 236, 8-55 2. 32 52.8 - Rwanda 17,371 0.17 1.0 St. Kitts and Nevis 5,()31) 0.05 0.2 St. Lucia 22,475 (.22 )0.2 St. Viincenitand the Grenadinies 5 14 (.(01 (:).I SaoTom& and Principe 4,714 11.05 (1.1 Saudi Arabia 353,7()7 3.47 2,033.2 Senegal 27,7 5 1).27 2.2 Sierra leone 12,667 10).12 1.0 Slovak Republic 20),893 (:).2() 7.0: Slovenia 18,956 (1.1( 3.0(: Solomon Islands 518 ((01 0. I Somalia 1(,51)6 (1. i0 1.0 - Sri lIaLikai 43,5-71 0.43 4.0 - Sudani 22, 886 0.22 1.3 - Swxaziland 11.073 ).11 L0.4 - Svrian Aralb RepuLblic 7,651 (1.08 1.2 -

178 THE WC)RLD BANK ANNUAL. REPORT 1995 IDA

Sulbsriptions and Nutimibe Pert eritage (ouitributioins Spe ial Ftud Memiber' of sott, of total coniimititd Lotitribtitioits

Tajikistan 2(,568 0.20 S (.5 $ - Tanzania 33, 599 (0.3 2.1 - Thailand 43,571 0.43 4.3 Togo 21,847 0.21 1.0 - Tonga 11,38() (.11 0.I - Trinidad and Tohago 770 i).(1 1.6 Tuiniisia 2, 7'3 0.03 1.9 TurkeY 6 7 441 0.66 8(.1 - Uganda 21,093 '3.21 2 LUzbiekistaLi 746 (0.01 1.5 - \Vallntatu 13,745 0.13 2 Viet Nam 8,889 0.09 1 .9 Wcstern Samoa 13,06 1 .13 ).1 - Yeimeni,Republic of 32, 648 (0.32 2.1 - Zaire 12, 164 0.12 3.8 Zambia 2 6,S8 (. 26 3.4 - Zimhbkwe ',013 0.09 5.( -

Subtotal Part 11 MeNlmbers3 3,923,380 38.49 2,965.2

Total-June 30, 19c5 2. 3 10,192,1(07 100.3(30 $92,89 1.1 $596.4

Total-June 3(), 1994 2 9,668,041 $S89,667.4 $596.4

intindites alttoloits ltess t/lttt $0.05 Intlit/t.

1. See Notes to Spe oi/ Purpose Ftnitnc-ial Stateinen t.-Note C for tit explnoltion of the too categories of inentf'ership.

2. ItI tiit, Steitententy ol Sources luul Appfittnttioios of DB elot-'opienit Resources at Ju ie 30, 1QQ5, ,Vleii/berSn/bseriptionts (in(l Contnl7u- tionis Coninttt qttof $'1?, 772 miillit ($89, 544 tnt/lion-h ne 3t) 1994) dloes not inclu/le $5 12 tnillion ($512 m i/lion-Jtne 30. 19?4) of Swot zerbitd 'ssti/iwt'iption otld rotrilititons rind inc/idOes Special Fuitnl conrtribtttionsof $386 ntilh/on($389 tnil/ton-lune 30, 1 994] and repsy'ients fn-ontcretits tfitottor/ IN,tile Spt'cial Fuid of$£7 iilltoni(nil-Jitte 30, 1994). $512 itil//o ($512 tnil/oti- lote 30, 1994) ,,JStwiit-er/olto/s st /scrriptiotntnlt sontritution hait i 1entf't,t ciicludedl ti the Strstenieits t of Sot lices andtt!.Applicationts of Det elo pinettt Resources sttlc'e l is l'epreset its the tlitereiu e bettiween the tot01 cofiti tcitg grnttts of $580 i inifton provsided fry Swiit:erlan/id directlY to the IDA brrt7owi)ers rts co fint(nctng grnnts betioeet the lourtit tniti rhe it ith rep/etn tsit ents of the ID.Al reoRtirces, 1 the .luly 1 99?2contfitlioit/iny Stvrit i ierlnlof $68 tmilliott Specitl/ Fitlz/ cutribfttioni of $386 tnil/ton ($389 tnil/ion- tien 30, 1994) hnute' feett initctdedl, sI Ic theIic litopnient ret/its thot tveet' flhndete itsiitg these' Itsoatirt e. t' rs/svt'rbi/'/e to i/ie IDA (see Notes to SpezIa Purpose Fititn ciali Stntenenttt-Note C).

Ri'pttvinieit Is r tsfi't tced bsv tlie Specit/ Fititt of $7- itt//litt (itt/-little 30, 1994) ilt 'e /'eett ilncliit. it1. 3. MaY dtiffer frotn thtt' othitof nditi/ f gitrt'ssit o ( itb ust otf rountditig

The Notes to Special Purpose Financial Statements are an integral part of these Statements.

IDA AND SPECIAl. Ft INLDFINANCIAI. STATE NIENTS 179 NOTES TO SPECIAL1 PUI-RPOSE FINANCIAL STATEM4ENTS

NOTE A-ORGANIZATION, OPERATIONS AND Basis of Accounting SIGNIFICAINTACCONTING AND RELATED The IDA, special purpose financial statements are pre- POLICIES pared on the accrual basis of accounting for develop- ORIGIN AND AFFILIATED ORGANIZATIONS mnentcredit incomiie,investment income, and administrative expenses. That is, the effects of transactions IDA:The International Development Association atI other events are recognized when they occur (and (IDA) is an international organization establisled on not as cash or its equivalent is received or paid), antd September 24, 1960 to promote econiomic develop- they are recorded in the accotinting records and ment in the less developed areas of the wvorldinclude(d repor edtfncl in sa tements of the periods to in the IDA, membershlip by providing financing on ich therelate. terms which are more flexible and bear less heavily ont the balance of payments than those of conventional Tr-anslation of Curretcies loans. The IDA has three affiliated organizations, the Internationalfor Reconstructionil Bank ande Developl p tatenent ar International Bainkfor Recoistrtction and Develop- Thx. ressed in terms of U.S. dollars solely for the pur- ment (IBRD),the International Finanice CorporationS 1 0 5 (-)aniteMliaea Ivsmn urne pose of summlarizinlg the t fianncial position and (IFC), a(Id the Multpiateral I povestseofit Guarantee the results of its operations for the convenience of its Agency (MIGA). T'lie principal puL-pose of the liBRD) IS iiicb-sLnoteritrsedptes to promote the economic development of its member members and other iterested parties countr-ies, primarily by providinig loans and related IDA:The IDA is an interinationial organizationi that con- techinical assistanlce foI specific projects ancd forIpro- dricts its btisiness in the cur-rencies of all of its mem- grams of economic reform in developing member hers. Development resoui-ces and sources of develop- countries. The IFCs purpose is to encourage the ment resouL-cesare translated at market rates of growvth of productive private enterprises in its member- exchange at the end of the accounting period, except countr-ies through loans and equity investments in Member Subscriptions and Contr-ibutionis, wvhich Suclhenterprises wvithout a member's guarantee. The are translated in the manner described below. Income MIGA was established to encourage the flowsof invest- and expenses are translated at the market rates of melnts for productive purposes among member cooin- exchange at the dates on which thev are recognized or tries and, in particulai, to developing member at anl average of the market rates of exchanige in effc ct cotintries by providinig guarantees against nonicommer- during each month. Translation adjustments relating cial risks for foreign investment in its developing menm- to the revalutationi of development cr-edits denomiii- ber c*ountries. nated in SpeciaLlDrawing Rights (SDRs) are charged Special Fund: Oni October- 26, 1982, the IDA estab- or credited to Cumulative Translationi Ad justmenit lished the Special Fund constituted by funds co'trib- on Development Credits. Other translation adjustments are charged or credited to the Accumulated uted by members of the IDA and adminiister-ed hv the Surpltis. IDA to supplement the regular resources available for lendinig by the IDA. The arrangements governing the Special Fund: Developmenit resources of the Special Special Funid may be amenided or terminated by the Fund are translated at market rates of exchange at the IDAs Executive Directors subject to the agreemcint of a end of the period. Contributions are translated in the qualified majority of the contributors to the Special maInner described belo.v Income is translated at mar- Funtl. The resources of the Special lund are kept sepa- ket rates of exchange on dates of recognitioni of rate from the resouLces of the IDA. income. Translation adjustments are charged or cred- SUl'MMARYOF SIGNIFICANT ACCOUNTING ited to the Accumulated Surplus. AND RELATED POLICIES Member Subscriptions and Contributions

Due to the nature and organizationi of the PDAand the Recognition Special Funld, these finanicial statemenits have been prepared for the specific purpose of reflecting the IDA: Member Subscrimniots and Contreibutiolls for sources and applications of member subscriptions andt c IDA replenishmLIentare recorded in tfillas Sub- are not intended to be a presentationi in accordance scriptions and Contributions Committed tpon effec- wvith generally accepted accounltiisg principles in the tiveness of the relevant replenishlment. Replenish- United States or with InternvationtalAccounting Stan- mellts become effective when the IDA has received dards. These special purpose finanicial statemenlts have Lommitments from members for sibscriptiols and been prepared to comply with Article VI, Section 1 contributiolns of a specified}por tioin of the full replen- (a) of the Articles of Agreemiienitof the ID\. ishment. Amounlts not vet paid in, as at the date of effectiveness, are recorded as Subscriptionis and Con- The IDAs special ptirpose finanicial statements art, pre- tribLitionis Receivable and shownvas a reduction of pared in accordance wvith the accounting policies out- Subscr-iptionis and Contributionis Committed. These lined below, receivables come due throughout the replenishment period (generally three vears) in accordance with an agreed maturity schedule. The acttial payment of

180 TH- WORLD BANK ANNtIAI. REPC)RI' 1')95 receivableswx henr they becomiledue tromiicertainil mem- manner as TSmenitiolnedin ( 1) above.The II A, Articles bei-sis Coniditional tpolil the respective meniber-'s bud- of ALgreemnentaind suibseqenLieit repleniishimenit agree- getary appropriation processes. menitspro-v\ ide that the ( urrencv ot any P'art11 member

The Subscriptions and Contributions Receivable art-c paid in by it maJ not be used bv the IDA For projects sTthel throu gh-psaymentof ash ori-nonncegoti-able fiehoainced by the I )A and located outside the territorN of settledlthrouigha praymzenlt oF cashl or nonlnegotziale, the memirberexcept hbyagreement betseen the memil- nollilnterest-bearingdemand notes. If the receivableis her and the D\. These subscriptions of Part II mem- settledin cash,the cashiis recordedin Gash andbS Investments Not Immediately Available For Dishurse- bers are recor-dedas Restricted Clashand Notes. menit unitil stc h time as it becomesavailable in ctLor- Special Fund: Member Subscriptiols and Contribl- danicewNith the replenishimenitagreemeit. The niotes tions to the SpeciailFunid are paid in cash and noninie- are encashieclby the [DAas pirovided in the relevant gotiable, noniniterest-bearingdeman.d notes. The repleniislimenitresolution over the disbursement demaindnotes are encrashedhb the Special Funldas period of the cr-editscommitted uLider-the repleniishi- neededfor disbu-rsemnelntIn SpeciailFund credits. As meit, and the cashreceived is recor-dedin Cashand Special Flund credits arredisbursed, the portion of sub- InvestimienitsImmediately Available for- Disbursemeit. scriptions and contribUtions,related to those disburse- mentsis reflected as part of the IDA, Member In certain replenlishmenits, members have had the SubSeriPticInS and ContributIOnS, sinCe repa'mentson option of paying all of teir- subscription and contribd- all detelopnient credits become part of the general tion amount in cashbefore it becomesdcLe and receiving a discouint. In tIlese Cases,thle l[A and the member resocircesoF agreethat the IDA sill invest the cashand retainithe \Valuation incomie.The related scibscription and conitribtition IDA: lTe sLibscriptions and contributiolIs provided pay ment is recorded at the hill uLidiscoLitecl allmoun-t. thotigh t third replenishment are expressedin The cash antdinsvestments are recorded in Cash andi terms of UtS dollarsof the weight andeness in Investments Not ImnmediatelyAvailable ForDishurse- eff ct ontI ion . Iars 19t the 9 dollard Fteess in ment Lintilthe d ate when the subscription aim1contri- h a butionl amiounitbittiii svocild 31101111twoulhavhavze becomiebecii-i due,due atat syhichhichthe abholitionlsys-of ocldn ,oezis h Li coniilloti eelo denlominiator-h rvso-r oti the h time it becomesavailable. The discouLIt is recol-ded im monetarysyste n annothe repv al of the provisiollar the Other Resciure.esOthei-esotii-es aiidamortizdanti amortized overo\,,-- thetli prJctcrojected termsUS law- of defiliiilg 'ol the the pre-existing par-% alue basisof thefor U.S. translatingdollzar in disbur-semenit period for the replenishment's credits. 19)) dollarsinto currentdollars or anyother currency Under the Articles of Agreemilentand the arrange- clisappeared'Ihc ExCeCutiveDirectors of the IDA haive ments governing replenishmeits, the IDA must take decided, xvith effect on that date and until such time appropriate steps to ensure that over a reasonable as the relevant provisions of the Articles of Agreement periodlof time the resourcesprovided by doinor-sfor are amended,that the svords '1I.S.dollars of the lendinig by the IDA are used on an approximately pro weight and finieness in effect on January 1, 1960" in r.ata basis. As discussed in the previois paragraph Article 11,Section 2(b) of the Articles ot Agreemelnt of doInors sometimes contribcite resoLirces substa.ntiall the [DA are inter-preted to mean the- SDR introdciced by aheadof their pro rata share.Unless othersvise agreeccd the International Monetary FRindCaas the SDR Was s'al- the ID[A does not Ciisuir-se these findcls ahead of donors's Li d in terms of LI.S. dollars imimrediately before the pro rata shares. Cash and Investments Not Imimledi- intr-ccuctioni of the basket method of vsalciing the SDR atelv Available for DisbuIr-semenCItrepresc'ots the differ- on Jcily I 1974, such value being equal to SI.20fi3S encebetseen the amount contribLutedand the amount for one SDR(the 1974 SDiR), antI have also decided to available for disbursements on a pro rata basis. apply the samie standard of vsalce to am1ouilnts expressed in 1960( dollars in the relevant resolutions of Transfers tci the IL)A from the 11ERDare recorded as the Boar-d of Governors. SouL-cesof Developmenit Resoci-ces an.d are receis able upon approval by the BIRD'SBoard of Governors. The subsCriptioIs and contribUtiol)s provided through the third repIenishment are expressed on the basis of For the purposes of its finaLincialresOburIes, the memn- the 1974 sND. Prior to the decision of the Executive bership of the IDA is diviided into tsVo categories: ( I ) Directors, the IDA had Valuied these scibsriptionIs andC Part I members, s'hicih make payments of subserip- contributions on the basisof the SDR at the currenlt tions and conitr-ibutionis providledl to the IDA\ in conIvert- market XaJuIc of the UDN. ible ciri--encies that mav be freely Lised o exchanlged by the IDA in its operations, and (2) Part It mIemibiers, The subscriptions aid cointrilutionls prov'ided ulider most of w hiclh make pay ments of 1() per-enit of their- the fouirth replenishiment and thereafter are expressedl initial sulbscriptions in freely coliver-tible cul-rreicies in menibers' c,urrenciesor SDR, anid are pavable in an.d the remiainling 91) percciet of theii- initial subscrip- member-s'u-'-rcr'ies. Be'ginning .liy 1, 1956, sub- tions, and all additional subscriptioins and conitr-ibu- scliptiorns and contributiOns made available for dis- tions, in their o\sn curr-enicies or in freelv conmvertible bur-semerit in cash to the IDs are translated at market ciur-r-enicies.Certaini Part 11members proside a portion ratestof exchange on th' dates they x ere made asail- of theil- sLubscriptiolIs and Contribcitions in the sam1e

IL)A AND) SPi IAL FI INL) FINANCIAL. STATF\IENIS 181 NOTES TO SPECIAI. PURPOSE FINANCIAL STATEMENTS (Cuntimied)

able. Prior to that date, subscriptions and contribkutions It is the policy of the ID\ to place in nonaccral1 status that had been disbursed or converted into other cur- all development credits made to a member govern- rencies were translated at market rates of exchange on ment or to the government of a tcrritorv of a member dates of disbursement or con el-siol. Subscriptions if principal or charges with respect to any suclh devel- and contributions not vet available for disbursements opment creclit are overdue bv maorethan six montls, are translated at market rates of exchange at the end of unless the IDA manage11mentcleter-milines that the over- the accounting period, due amount will he collectecl in the immediate future. Ar-ticle IV, Section 2(a) anid (bj of thle IAs Articles of In addition, if loans by the IRRLDto a member govern- Arieeti-cl Sectprovide o 2(ainan(ote r IDAsvAticls p f tment are placecl in noiaccrual status, all development Agreement provides for maintenance of valre pay- credits to that member- government will also be placed ments on accotrnt of the local cur-renic portion of the i initial suibscriptioni wvheniever the par %alue of the her's developmeIt credits are placed in nonaccrual sta- mtember'scuirrenicv or- its foreign exC.lalige value1has be' e lplstccit repzcdi oicrilsa m c e o i f v tus charges that had been aiccrued on development in the opinion of the IDA, depreciate onrappreciated credits outstanding to the member that remained to a significant extent within the member's territories, unpaid areadeducto the incoe rom devlop so long as and to the extent that such cu-rrency shall ment credits of the cuurent period. Charges on nonac- not have been initially disbursed or exchanged for the cririg development credits are included in inconme currencvy of another- memieber.The provisions of Article only to the extent that payments have actually been IV\ Section 2(a) arid (b) have liv agreem1ienitbeeno received by the IDA. Ot thelidite a memlier pays in ftill extenided to cover additional subscriptionis and contri- all butions of the IDA through the third replenishment, froni nonaccrual status, its eligibility for new credits is but are riot applicable to those of the fourth and sub- restored ard all overdue charges (rnclrdrng those seqtueiit repleinislii-eiits. froni prior years) are recognized as income from devel- The Executive Directors decided on June 30, 19X8 oprient credits in the current period. that settlements of maintenance of value, xvhich w ould In fulfillingLits missioni, the IDA makes concessioial ' - result from the resolution of the valuationi issue on the loans to the poorestp cor.rntries; ther-efore there is signif- basis of the 1974 SLR, wvould be cleferied until the icant credit risk in the portfolio of developmelit cred- Executive Directors decide to resume such settlements.amounts These are shown as Deferred its. Management continually monitors this credit risk. m-rents.These amounits arje SllOwnas Deferi-ed Amounts Receivable to Maintain Value of Curr-enicv Howev er no provision for credit losses has been estah- Holdings.hlished because it is not practicable to determinie such Holdings anLamount in view of the nature aLidriiaturitv struc-

Special Fund: Beginning April 1 1989, ssrbscr-iptions ture of the credit portfolio. Should actual losses OCCUI- and contributions received but riot yet disbursed, as they svuuld bc charged against the IDAO Accumulated well as subscriptions and contribtitions disbulrsed or Surplus. To date, the IDA has riot suffered anv losses on converted into other currencies, are translated at mar- receivahles froni developricint credits. ket rates of exchange on the dates they were made IDA:he repaynierit obligations of the IDA develop- available for disbursemnent in cash to the Special Funld. met cr-edits funded from reSOUrcesthrouih the htli Prior to that date, subscriptions and contributions that replenishment are expressed in the devIelpment had been disbursed or converted into other curirencies reditiagreciierits in te f dolsi Jun xvere translated weretraisltedatt marketrai-et ratesatesof of exchangexchn,,eat at datesate oft ]cr~edit 987, theagreeirieiits Executivein Dir-ectorstermIs of 1960)decideddollars. to value In Ju-ne those disbursernent or conver-sion. Subscriptions and contri- development credits at the rate of S 1.2)635 per 1960 butions receivable are translated at mnarket rates of dollar on a permanent basis Development crcdits exchange at the end op the accoubstins peDiodr exhagateenoheacontnpridfunde( from resources provided tinder- the sixthcredit Development Credits replenishmienit and thereafter ar-e denominated in SORs; the prinicipal amounts disbur-sed under- suIchidevelop- All developrment credits are made to menitber gover- - riient credits are to he repaid in cr.rrenicv amouLntsCur- nienits or to the government of a territory of a member rently eqrivalert to the SDR, disbur-sed. (except for developmenit credits that have beenn made to regional developnicnt banks for the benefit of nieni- Special Fund: Special Find development credits are bers or territories of niembers of the IDA). In order to deioriiiriated inison The principal amoun1tsdisbuL-sed qualify for lending on iDA terms, a countrv's per capita under SuchI development credits are to be repaid in income niust be beloxv a certain level, arid the cOuIntry curr--enicyamoiriits currenitly eqirivailent to the SDRs may have only limited or no creditxvorthiriess for IBID disbursed. lending. Development cr-edits carry a service charge of 0.75 percent, generally have 35- or 40-year firial matLi- Special Fund development credrts are nade on the rities and a 10-year grace period for principal pav- same terrs as regular ID.A developmnet credits except merits. Development credits are carried in the hinaicial *that teselopthe pr-oceedlsof Special FLunddevelopment credscl-edits statements at the full face amouLnt of the borrowers' niay be used only to finance expendituLes for, oods or outstandinig obligationis. services from (a) Part It iiiernbers of the IDA; (b) Part I obienilber-scontributing to the Special FLnd; and (c)

182 THE WORI.D BANK ANNIUAL.REPORT 19905 Part I memhbers contributing to the re gular resources of Futturesandl Forwards: Futures and forw.ard contracts the ILA\ through the ID,\, FY'84Account whohavle a1i conltlracts for dela\vet de]iVelr\ of securltics 01 notifieid the 11)\ that suIch contribltions aLreto he morney markl-ketinstrtimelnts in wAjhichth seller aLgrees treated in the sIme manier Is contributions to the to make delli ery at a spCcified ftiture date of ai speci- Special Fulnd for 1purp1-osesof any FUtuLLre aJdjustMelt Of fled insltrumenit at a specified pr-ice or yield. the voti)ngri"hts of the members of the IDA. Covered Forwards: Covered for\s ards are agreemets

Investments in whit h ah inl one cerrent V i5 colnverted into a tlif-

The IL1.\ C,-crieS its inVestmelnt securi itics antd related feren tirrener and. simtiltaneousl\ a tward The -L- , , c\.hangeex, agreemelit is executed pirox iding for a ftutur- fintncial inistrumenits at markelt sal tie. Both realized and tinreal izetl gainS adC losses a .e1incl .detIn Icm exchange of the t\ curreLncies in oirder to recover the fronil nvestmelnts. Ui-encv tonvertet.

NOTE B-INVESTMENTS Options: Optionis are conitracts tl;it Ailmoxthe holder of the option to purchaseor sell a finltci.al instrumenllelt As pl.artof its ox erll po-tfoliio maniagemientstrategy, the at a speci hed prit e \ ithin a spveih cd period of time ID A invests imigovernment anld agen-cy ohigations, time from or to the seller oI the opition The purchascr of aln deposits, anti rtlated hinanicialinstlumll1clnts xvith off-hal- op-tion 1pays a prelium1lil a1tthe outset to the seller of ancesheet risk including fttIres, forsvardconitracts, the optioln, Who then beaIrsthe riskl of an n.1favoraible overetd forxvardcontracts, optiois, and slhort sales, ChaJIge in the priCe of the financia11 instl-tilICIlt tLinler- Government and Agency Obligations: IThese ohll 1\ im,9 thle onv-optioii. The 11) \ oti]\' ijivcstst ml ex\lharigeX-c tions incltidemarketabie bonids, notes, antI othc r ohli- tratdetl options. gations.Obligations isstied or incondlitionalls Short Sales: Short salesare sailesof securitiesnot held gluariteed 1 \ governimenits of cotiriti-ies ret]Luirie a in the IDA, plortftolioat the time of the sale. The 1It\ milnimtim1 credit r ating of AA if tellomilillnited in a ttir- mtist ptLltc1hasethel securits aLta later date a.nd bears rent V other th an the home curreln v; othler-xxise no r at- the risk thalt the market sal tie of the security xwill mo\ e ing is retlutiretl. Obligations issuedl b ainagenlcy or adte rselv betxs\eenthe time of the sale and the time nstruimentalitv of a gos0elmnenlt Of aLCotiltl-r, a m Lilti- the scturits m Lusthe delivedttl. latcral organLizaltion,or ans other official entit\ rr'tClire a cretlit ratinlg of AAA. A su1111mar1 of thle 1) \ inVestmelnt porttolio hr instri- mcnt for Investments Immhedliate]v As ailable for Dis- Time Deposits:Time deposits include certificates of htirsenient anid Not Immediatel\ Available for deposit, bankers'acceptanCes, and other ohligations Disbursenimnt at tlne 3(1, 1995 is as folloWs: iSsUteC or tiicondlitlonalllV gu.aralnteedl by banlks antd other fil ancial instituLtions.

Illiiiiiiio,li

inimeduitct :iii:ihhil [r disbtirsetlltlt Not imitvdi:itelk \ajiabl,e for dibui,emet

A\'vrdgVtIti0H Net gahi' Net gills A\s.t hiflatntc dur- (lo-wsl) Ior As, t A\ el age daily (losss) htine 30, iJig tte hOLil Il, lite 301, halantc during fol tile l15 sear hs, INeil i¶9I tilt hs il Near ti,alsear Go-ernment and-eagdincy obligationis Sl )42 $ 1,334 SI9 Q37 $)i32 $48 Time ldeposits 2,232 19I(i) 4 )2 393 Ftittires and forxvards I I (I)

CovCered forwxards - I - Options - Resale agreements 21) 41 -r- S4,1) S3,3il SI Sl 34() %977 $48 Shol-t Sales $ (27) S(46 $ $ $ ' Reputrchase Agrecments (6ft I(1)2) 2 (145) (u)3)

I,ess fllth,,S05. s ,,,,11;.iIi

As at 1tine 3()) 1 '5, the SIpeCia tian.d had onll timt deposits in its ins estment portfolio.

IDA AN)\ Sn)r(1\i Fi INL) FINANCI \t STATFM\FNTS 1838 N OTI E S T 0 S P E C I A L P L R P S)S E F I N A N CI A L STI A T E N1E N T S omtiwidsll)

A suImImIarJ-VOf the r i p0 51ps0on oA InLsustmllens Imnimediatel\Available fir- DisbI-s.llelnIt atId Not I mme- diatelk Available tor- I ISburs.em lt at 1o1ne30. 1 '03 anld lonie3i, 1'"4, is as follosss

In million, nil .S. tlIliir .qui,acil nt I (15 1994 spc 1ii, Spc( ial

Noi Nol Il,,ltl~imm"di,w ,nmwdi;.o .I,-,, .inX\imed..iatlvI ,imlilahl"l t0l ;i,ji;1.1hl ,- ;,a;il ble t ,, ;, 1ilohl" f0,- di'butrsmnt dislbmiistiil Tol To,tal disbliiis.,liciit lib total,.nt I ; ll lTotal (Cjmntlian d'llnis 3 5 - 5 *.$ 9; - 5 5 7 3 Dit3os, 1w il21k I .S 2I{ 1 S23 1 242 i5 3, F-Hlnh fancts, 3t' 123 453II -I 1-3 225

It;liajn li, - * - 0'> laPan]v \eii!i1i 7,2 2S'7 ''12 27 1*1 3-13 Ponldtl t(13rilii_ 2SS 08 *S- - 42 1-48 S\outlidh kroiiioi I I In6 44 I IniledState dollar> 1,243 5< 14 4') 3311 341 '- t)ie'-ill in, 1 is 3" (OS1 - I()- 2S

Si I4's S1 340 S:.48 3 2. 244 S2'C 52 `1 I 22

For the prtinose of risk mana4emvnt, the IRAis parts NOTE C-NEFNBIEFRSUBSCRIPTIONS AND CON- to a \ ariets of tina1ntial instroaients, t-ltain ol \\ bitll TRIllit ITIONS inv ol e elements of tredit risk in e\cess of the amounlit Subriptiois and Contributions Receivable: retlettld in the Statements ol S'ourtcesand Appli a-a tions of Dv elioip nent RIe:oor:cs. C-etdit risk -e pie- The par imienit of suhseriptions andct.oltriho utions is sents tile laaximonmpotelntial aCt()UIting4 IOSS LtI' to ronditinnll o)n thte mIIemIbIIers b tidgetaLrV processes. At 1 possible nonperfoinin.i e bs oblioors antI totinte ipar- tILn 310, 1.199 retei\ iables fromll stibSriptiins alnId ton- ties tider the terms of the tontrats. AdditionL ally thu- trihutions 0\ a, $6, 37 millioi ($ 1 SS(i m illion nature tit the i IstrItnIeIts invol ses ContlLet \altIL' and lone 31, 1' 94 ) of svbith $4 m; illioni (S343 nmil- notional principal J1i11t-ints thalt alre not rt fleettL in lionl Itin3t1)3( 1 I tO)II) sa detile and j6,21-I millioll the hasic financial stamtemnts. For both on- anld off- (l(i iSl43 million Jutne 3(, 1 tItIA) \\as ni it t' tlie. balant Ce sheet set uities, tILe 11 \ limits traJli n to L list of,auhorizetldealers ad ttitint arties. CreI limits Souhbsrip'tiools anlli contriblutionls dlut as at Jtine 3(' Ofat.Itl(tlfi.led led.CI-s .1W COUMClt-P.lit]ts ClV.it( lililitq -, 1't1 \n ss- ztr as Iilloss's have\been establishietd for eatlh Coi mntr-parts bs\ tylp ol I \

inStLtiment anId naIuLritv t ategors. ln illion" The tretdit risk tX\)Oiltire antI tOntrattal t eloti1tilnal Annu>.,, iijtKIIIN d1 (o1 Junil,3o 19JOu amo1tins, a-s a, 'pplitalt'l, oft hIt.se Lfitlania1 illSttimlnts aS at loine 311)1993 andt hlne 31), 1')4 are gisen heltis: 1ul1I, 101114thnin'-Lg J11,111'Sti I(tIi 53> I

4 iii,lin in.l Ivl1s1 11103thioli Inni 3., 1li'i(004 hI million,~~ ~ ~ ~ ~ ~ ~~~hI )1>toimalot 1) 9 I(1(9, 1994- ltin' 3i) I1)'1' nl rl4'mI 3

Shirl't positili SKI 5i2 Cri edit .- Xptsuo dkw Sobsel ipLtiolns alnI coLItributiolIs not set due as at ntit.-ntal nlpel Vlt.>l-moallt - (rzltiLnIe 3(1, 10113 will ettimetl Llie as follk s: tOMMUl rzl-Pltic,2 t I Cklitiiiit-rimr Li tl-s I

ireLIit i\p 'tmi e .In lt.

(>11t1mltiil tiii-IIimnlm ;am.o ls iils I, I 'ti thri-igli Itille 3), I \-i(i S-I1 13 I

p[ions t 5' 1, 1 L1 itcr ''-Lt Ioag p',,it35n IOtAl '2-I Shilort piisitimll 2 Ii

1 4 THE \V'RLr 1.3\NK ANNI '.\I RIl'() t l 1]9)9 Membership: On Fehrt.iarx 23, 1 993 thec [BRIll lA\c,ti- NOTE D-TRANSFERS FROM THE IBRI) tix e Direc:tors decLided thazt the Socialist FederalID '[e nt Bad fGo roshsap ox d RepuLiblIicof Yug'OsI,laVia (s1 kN ) hadLceased Ito he a micit- traThnsBIer to thedOf~ totalingrI4 273 mIllion her of the~ IRRi I and that thekRepitiblie of Bo~sniaand ageat He.rzegoxina, the RepuhbIi( of Croatia, the formel~r thirough1 'Ltine 311.I 004. Ot the total amount, $8) mul- \gosla\ Repul'ic of MacedoniaL, the R epiblit of sin- rchon~as ,tbee ontdsbrsed bri ocrantsifo ag inv olthera %cnia,and tile Federal Republic of`YLIgosiax a (Ser-bia reert] te otrlofococrcasi,el and )4thero alldN111ILHU"0)re lthrlZd t) sl~(ed o tllfdevelopmentald actixities-.OnO tbr6,19 h al IOiI eneoc reathi tdhisirec'tItl IBRIt IBoard Of GoverinorsapprIovedI a fuirther ti-als"fer irlembiershil) IPOf tile `+F'N in thie hlti whenl\ cetaiin Of S300 111111100ill anl eq0i\ aleilt aill0ouilt ill SLlIb to the recjuiremcrits are illet. In accordanice xvitll tIle Articlies II), b5fyx'\ of a rilt Of A'greeilleiCLt oftile I[l,\, oil FeIbrnarv23, 193tile SI ItS ceased to he a n1ieillher_of tIle 1["Adue toI tile Ces~- NOTE E-DFIY\TEOPNIENT CREDITS saitionof its imlilber,,hip iil thetIBR Ii'Three of tile byve IDA: At June 31), 199I5 mc dcx elopilleiClt credits p-ar- success,orRepti-blist:Ilte Repuhblics of Croatia arid ablle to) the it \\ othler tialtls eere oi leOl Sloxcilia and tile formtier Yugl,osiavRcpublic Of NMace- iov gpaarpl rtere tosrte b0erilred tilainlh ollre dcniii havX siilce becomle ilemlbcrs Of the II V\. 'As ait I\ n- aa,rpswi vru 1 ioeta he 'tille ?) 1 I rUt5 tIle sulSIseri tiOIl aild conltribultioilsailo- mloitils. carted to tile- otiter, success,orRepUbliCs (thll Rep)uhlic At 'one 30, I tm tile develipilenlt credits made to Or of Bosnin anOdl-Ierzegoviina, and tIle Federal Rep)uhlir guaal" teed h\ certain mciiler countries xvitll ail OfYUo"osiLIxVi (Serbia aindM'onltene,ro)) are iniclcided agreae ril ipa haaillCe ou-tsraildiilg Of S53,373 i11i- tiilrie PINIlknlbs on AcCnUIlt Of' fPelildg M cl be'rsilip iinil ($3,333 ill11iMI Jil Tile 3(1, I 994), of%\ell Jl S(jan

Oni N1 is 21O 1002- S\\ irzeriand bfcamie ai member Of illillit cli (542 milliioi-J uin 31, I1994) Was o\l,idue, thethI [)\.dae Bfor S,,izeratidhad(onribtCd were ill bonar, ru al statutisAs of suaci dare, OxerdueLI til te IDANBeor that da1e1teSv Iirriailrio. hAd rolt,ribied chlarge.siin respe,~ctOf thiese de'velopmentCredits totaled to til IDA ilf S3erliix'aeiit IIlliiioil. s agred $16) million 1-46 iliicilloi Jtine 31)I,1 9)94 ). If thlese betxveenI tile Sx\si1sCoilfeeratioll1 aiid the ILlS. thlese dvlpleltceis,a otbeiilitilcc lsa grailt roiltr_iLItiOlls ,\ ere conlverted to) ain [I \ dsulbscrip-sha o be i inncua a tilcil. FLtirtletlrc-Lfiil, tIle Co111i1litilleilt [IeriOcds titis, incm Tldcx elopmoentcredits for tile fiscal h(t\UItefUIth-IIIth lilllrplFiS11_1t Of seat codecdJUee 311, 9I sc";oUld has e been hig,her bv tile iLlS\resources, SxviLZrvcIand had CofiallCcd p)rolects -2 ilo ,, ilo -ue3,1)4) \hkhi le1t if chargesl r1ceived from11such Ilicolbers citiring tile by ilakiilg ax aiiiblab to the ILl,\ boirroxve-rs Uritied graiits NerASiiliar ofieilerc itie xvtlceisir iil tIle alggregalte aillt1tiilt of SWiSs traZlleS I H)35 ili Ihl n (hlistoriCal I11.8. dollar aill0oncit Of`$38)) lllillOii) (4giriteOl llat ia ttsfl cxs ILuix' 7 , ] 992 , as aigreed betx\\een tilet Sxviss Conifedtera-iH tiilll ailt tile I1ElA,tileSe, galit Coilrribltiiiil, svere ccli- ____ serred to ail IF)A a-hsci iprioil aind onitrihurionl\ 5heli hnit' 30, 1 5 S xxitrzeilan d coiltributred a lo ritllc- r 56 illill ioin, repre - Prutim pi sei1till tile 11reserilt x aloLe of to ttore refl osy\ ol tile cciii PI icoipcal .cliiii harige N0cic,1LI11

Ilan11ciilg granlts, if rilex had iClcel illadLe tllrIougli til e Ll,S o____.. -i ol _____lg mcr i Lli oil tile Iii S repavrillit terillis. At lonie 39) eI $)17 Siiaioi 58 5o cI mliIlioll (5 ~)I2 11lciiiol- I tne _311,I904 ), repr-eseci till ~ oliaij 4ci 13 AprilkI'lS tilt differeinre herxx een tile totall oih ialalcinig griitof clia IS2 nr1> $38)) ill IlII on iandtile preseil t saImeI of fltuttire reiluixvs iiof Soidain _1,3 3Ilailax1ff- $8illillioill, has\e liot belci ii ti,1dedill tile M, icllber S%in]~ I rij 1,\r

SLIbSer1iptitins ailci Con1tribuItionS ill tile StatemeWii ts if' RUIpobllr -)4 April 11)88 Sour1-cs aind Apphit,atitcl)s of Developimlnt ResotrerS z e13 Ii 38 o -lt

ConLributions lo Special Funzd:N IeCIllbercilil tribt) iticill to) tile Spec:ial FLilid totaliilg $396 illillioll at tLile 311 Pi'Ita] 53 3761 9131I I '93 (53I956Ill ilIiol( ILil'n e 31), 004) arc rcfelictred a" .\ leil Iller SnillsL ripr)iOns aIlid Colii trr)Ibntioiis; i i tilt' State- Dtiri ng tile fiscal Near 'ilded hilt' 311,I11993 Haiti andc Mlerits tOf Srctirl eS anld Applicarionls of Des elopilenlt Rx\ ailda pa iL off' allI thieir arreairs,ainlcl thleret-ore erc'diits ReCstitrces.Ar 1t,ii1c31), I1993 tIle Spec:ial Fti ilrl total i., toI tileill ca l leottof loinac-crl_aistaIns. As a res,Ult, recflecretdiitt Of 5386i llclliicii ($389 mlillion 'tlue 3)) incomile fromi dcx elopnieit ~retditsfclr tile fisealx'ear 19914),\xihich repre-senIt>dcIeelop1Cillt crt'rL]it dlistirsL- elticlde Iiiic 30, 10t);)iilcrease.d hN 5,1 illillioll clirre- illeilts t1ilaLtare reCpa\aleN to aLcIF1ht I odJetdIll NMellt'Cr ,ptnincig, ito inlctime thia svotild liaxe beellr aIceriLld ill Sbs,criptions aild Ccantiil`iioils to tile [t) \. Furthler. plre iol-s fiSr aieas Forth fisc:al vear cilded Itiile 3)), $7illillioll (1111-'tille 30 99)-I.C IIreprst,Iltill" I epa>I- t)t)4, tIle iilci-ease ill illetoile froml tdevelopoleit creci- illeiltS fr0ill ties elopMle1lt Credits filailced be the~Slpe- its title to) 1tieseOl`i1ipigcedt t(i etlliVtrit~'s 1,tlmillg1 citi 1 citil [ouITI,1,has beeil dCdLtdcarr iroill the Special [noId of noIonactrtiai Status xx\,cs$2 Ilildhcin. 1 tiitai anlt inclutited ill tIle- NiCt'ilcr Subsenipticills, and LUndiera prlIro aml establlhset ill Sepltember 1988,,a Crlilrriiltinionsthe II til Iltiprtitun ofpri iilipal ilel,laNalleilts to tile I [A is allocated

IDA ANY) SIi,i_ciA1.Ft 'Nt FINANCIAl STA.rvfIxVNT• 18 N o T E s ' E S PE C I A 1P 11U R POC) S E F I N A N C I A 1 S1I'A T E Nl E NTI S ctmiotimnw

on1 anl allnltial basis to pr-ovide supplleme1ntarv 1 t\ rAc-d-- 'hllis ranlit e

iisbcrser3(1 wIXW ldetls11( pr3gai) from)4iSijephtiilO as ailgi,l c, iit devnlarids, areedes pned tcl itlolmrove tile )IRI) , arid tile iI)\, efteiCiL IVhile5 lmlaitalitlpl CTn-

I, ,f,lii,, ii' renlt operatimlg le\ els. The plipanned staft recItictiolis are e x-pect'. to loS\ er fliture seanrs acdililistrative I!t)5¶199 4 L"pellSes 1-v an11amltifnt greater tiail the associated ci st. 'File I1):S silare of tile 1 31 million ill costs asso- 1 COnlnl:;tnlLnts 5;1.1 1 eteciatcd ss\itli the planinied staff redc'i tions is 53 million Ltss: I llLi1iShnrlsctL 5 1 1J aida1111has bec'Ciil)ILIcLIded ill tIe M anagenlent FeeF c har-ged jSs tht II R ftor the hs.ail sear enllced Jrnne 31), i 995. Di sh-,rsd jin1La i'iitstalilmlio SI I U'S $I4 Special Fund: 'FL' Seri\ 'Canld co0llllitIlrIlt iharg`Cs pai\aible hi. borrmosers tiilrier Special FLiIncI Cieseliop-

Special Fuind: Special tulld LeLielopmellt \ creidits Jis- illeint credits are plaid diirectl% to the iD.\ to compels- btirsedi aiit outstaldiilg of $492 million at Airle 30), sate it tIlr ser\ ices as adifllinistrator of the Speciail 1995' (8417 Mi ilitll-InIfle 31), 11t!4) are iiltiLcld il FtiLM. iletIlle fl- ii\vStInlel1tS of the SpL'Lial Fin1d the StatemlCilts of SoiUrces ailci Applic ationis of Dre' el- beLollmes part of tile rc'sotirc es of tile Special llind. opnIent ReSOIrces Of tile lvIs si;nCe p)rilnipal repa\ - NOTE H-TRUIST FUNDS merits On tliest' deveC !ipillel1t credits s\ ill v'coil-e par-t of tile gelL'ral resOetirces of tile 11)A. Tlhle 1) \, alonlc or joirilt \ -ithl thllr' 1RD admlilisters oil

NOTE F-DISCLOSlIRES ABOLUT FAIR \'ALUIE iella oncrs,i i.-lio> nelbers tieir agencies OF FINANCIAL INSl'RlIl\IENTS IIanr otillc- elltities, fUllrds reStrict'Li ftor speCihC riCSe hichl incltde tile coinalariCill otf ILA lelidilpg projeCts, Investmenets: Siilce tile IDA car-ries its iiestillelilts at debt redictioll operatiolis for iDA 1mtnlelbers, tecilnical miarkset s ailte, the carrNlpn allOt,Ilt represents tile fair asSistal)ce for borro\\lers iclctding feasibilitm studies vaaltie if the pcirtfolico -liese fail salIC's all' ilased Oil anli project preplaratiol, glolbal and regiOInal programls. qtiotedL illarkeLt pr-ices ss here' av aiable. If Litlt riillr- m a rr'searcrl - h aidLi traiiliilmp prigramlls. Thise Uclilds are ket prices arce not avaliliale, Lair values ar-e bascd on llaccii in trust alrd are In0t includtiLed in thie idcvelop- qCIroted market prices of comllparable instrulelilnts. Tile ilL'lit resotirces of the 1 A- The Listri ibutionl of trLlst tflir- valtie of short-ternl hnanciai instrtiuilenlts appro.ii- fund assets is- executiflg apenlt is as foilos s: mates tileil r arm ing Xalie. ')15( M14 Development Credits: 'File IrA des elopilmenlt crrdits Tits) Niile' lOt \uiuihc Ila\e a sigllihcanlt gialt c'lelciit because of tile etfoles- h(Ll(jill-v otrIlIs hlluiLiT- of trust

sion aiala c3iteIlOf tll' C lYs, termlls. DiscoLc l lllt 1ag tile' [I\ts liii assets Ia d credits rISillg tilc stanldicarrd 1() pr-.eilt Lliscounst rate' of (ill ilul,,olt) zioIll,ts (in l millionts) atLou lits the Des elopInle'it Assistailce Coilm littee (I) \i ) of the ID`A Organ izatioll for Ecronosomic Cooperation anil D' s elop- si' eteLi 5263 445 Iso6 44s illeilt pIiovidere an estimate TOr thie prailt el'llemlt of the ReilicpI it [15\ credits. U sing the il perenLet DA dlisConLIt radte F\u, utid 4)- jS(0 '3 Zii- indicates that tlie t\pical IP.A Credlit cul1tJills a ralit

elelalenit of 5 plercielit to 8t) perclit of the folillnala Totu Si< 7'5 564N) -4Ii Lreclit amouint at the tille' the ci.eLlit i5 co1nillmitted.

186 THE VO(RIJ) BA\NK ANNI ! uI RI Igp9r)r) Tlu respotnsihilitiesof the [I\ under arranF. funds n1 ireduction of the NI an-a,ementFee hIr-ged irecintsvays and ragie from seryir es normalkl rio\ ided by the Ii RI. L)During, thie fisl 1 Iyar1)95, the IDA utilnLelrits own lendling projierts to) full] projectinple- Ire eied$812 million (SI I nillion---limin 30(,194) as iiielitaLtioli including proue-cmentof goods alnd se- teesfor dnillnisteriln,g tr-tlut funlldIs. ices. Tli IL-\ receik es tee forcii- aid in isterii,g trust

IDA \NL) SivFvai I INNL) Fl\AN(-'IAI S1 AI'VITN T,N 187 REPORTI OF INDEPEiNDENT ACCoUNTANTS ON SPEI CIA l PUIRPOSE FINANCIAL STATEtMENTS

PriceWaterhouse TheHague NewYork (InternationalFirm) Beijing Tokyo HongKong Washington London

Price Waterhouse

JUIV-26, l9c)'3

Presidenit and Board of Gos ernors InterniationaLl Dev elopmrent A,ssociationiand the Special KUindAdmiiisterted by the International De\ elopme n t Association

We hav e autlited the special puirpose Statermnintsof Solurcesand Applications of Developriment Resourcesas of Junei30, 109)5 .and 1]94, the SuI_MimatryStatemenit of Dev elop;menrtCredits mid the Statement of V oting Pusser and Subscriptions and Contriblution,s as of line 30), 1995, and the related special purpose Statements of Chanigesin AccLiuimlated Surplius and of Cash Flowsfor the years ended tline 3(1 1995 and 10994 exp ressedin terms oft U nited States dollars, of the International DevelopmnientAssociationl (IDA) and of the SpaecialFund Adnministered by the InterinatiornallDev elopnient Associatio h hipape.ar on pages 168 thriough I S of this Report. These financial statenients ar e the responsibility of rinaingeriment.OCur- responsi- bilitv is to e\press an opinion on these financial statemienitsblased on ouir atidits

We coniduCted otir atidits in acCordance%vith grenlerl-ly a.cceptedauiditing standards, including Internlationtal Standards on Auditiig T[hose standaids reqcuirC that w pliale and performi the audit to obtain reasonable assulralcleaboutt x\hether the financial stait mti nts are free of niaterial misstaitemienit.An auidit inctiudes examiining, oni a test hasis, e\ idence stipporting the amiounts and dlisclosuresin the finaiicial stateients. An audit also inclutdelsassc ssinow the accountino, piinciples uised and Significant estimates madt by managemrient, as wsell as evalLti lig the o\erall finanixalstaterilent presentation. WNiehelieve that otritidits provide a reva- sonable basis for otir opinlion.

The special putrposefitn.anciaLl statetmenits ivere prreparled to reiflct the souircesand applications of developmenit resources and the de\teloperinet credits, votingrpo\ver, and subscriptionis a nd contributions of IDA and the Special Find Adiniilistetred by IDA to conply xvith Article VI, Section I1 (a) of the Articles of Agree- rrient of I DA as de,tsCr ibed in Note A, and are not inte,nded to lie a presenitation)in conformrtity\\vith gererally accepteda( continlg principles in the United States or ivith I iteriLatioinalAccouniting Stanidards. In ouIr opinioll, the Specia1lpLr-paose filnancial statemients referred to abos e present fairly, in all nmterial respects, in termis of t Inited States dollars, tle souircesandl applications of developmient resourc--esas of Ju,ne 3U 1993 and 1994, the developmient credits, voting poxver, and subscriptions and contributions of IDA and the Special FoniidAdimtinister-ed b\ IDA at JunLe31), 199 and the chanuges in their accum11ulated sutirplts alindtheil- ash flow\s for the veairs endedlJune 31, 1005and I 994,oni the basisof accouniting described in Note A.

This report is intended solely fior the intot nfration of the Board of Governors, managemeit and member-sof IDA. Hoevei\tur nde r IDA s Articles of Agreement, this report is a mattel- of public recoid and its distributioll is lot limlited.

I88 THRF.\'()RI.l) BANK A'NNI \I. RK1'(iRT I 995 IBRD/IDA APPENDICES

1. Governors and Alternates of the T1'orkl Bank 190

2. Executive Directors and Alternates of'the I11orldBank and their l'oting Powver 195

3. Officers and Department Directors of the World Bank 198

4. Offices of the World Bank 201

5. Country Eligibility for Borrowing fronz the Worli Bank 205

6. 1W'orldBank Budlget by Expense Category and Administrative Programt, Fiscal Years 1993-96 207

7. IBRD and IDA Payments to Supplying Active Borrowing Countries for Foreign and Local Procurement in Fiscal 1995 208

8. IBRD and IDA Payments to Supplying Countries /br Foreign Procurement 209

9. IBRD and IDA Payments to Supplying Countries for Foreign Procuremeit, 1 y Description of Goods, Fiscal 1995 211

10. IBRD and IDA Foreign Disbursemetts, by Description of'Goods, for Intvestment Lending, Fiscal 1993-95 213

11. Lou- and Middle-Income Economies: Grow th of GDP and GDP per Capita, 1983-94 214

Long-Term Financial Flow s to Developing Counttries, 1987-94 214

Low- and Middle-Income Economnies: Long-Term Debt and Debt Service, Selected Years, 1989-94 215

Selected Trade-Performanice Indicators, 1971-94 216

Coimnodity Prices, 1987-94 21 7

12. Development Cotmmittee Commnuniques, Fiscal 1995 218

A\PPIN[IR V,, 1 GOVERNORS AND ALTERNATES OF THE WORLD BANK APPENDIX I flow 3(i),1]9)

NItlxtr (b, trirm -\Itcriait A.f4hlmnistaxi Ab,dil Karim Khailili Nlhlaimiad Fhlx,i Alhmixxx ['iler Vrlilni (ui,t ai KonLia Algeria Ahnied Berhlljioxi (x aeint A\ngola Iuxc Fed ode N lm An\itonIi(oGo! c* rta'Irl Anitigiuaand Bar-lhLxdt Nlolkx i luxe 1ix I.xidlIpli hrox)xix Aigctintii ['omtingo Ftlilp (7xl\;ilo RoLILI R-njiiiinx Femmi:de,r ATxiiixeiiia I [rlat R\.li,,iratii \I nx.n eghiil/arimii

A\LItr-.liaJ R,ldh \Willi GordonRil[nec Autr ia Andreli,'Stard]iha er HKin I lietniar SDlixtisnit

A\zerb;ij. IT 11lnix Rl_lxtanxoxVa\ iit K. Aklxnxedo\

RBalhanasxlI t HuibertA li iahXll Rul NlilLar B;allt,,n t Ib lienl AKjul Karirm RahIxed NI. Al-l.aralj h'anxglaexsh NI. Saiitir Ralim,an Nllhaml adlllI-Ittl-l111xil N1ia jiL Bjrbt,los t (i)x\ei S. Arthll G(.e Ruid

Belarlri t Nikol ii Filip1 o\iJiLRLima1s NikolzaiK. i,;i Belgium I'llililppMwIStxAadt Alb01 \ns\er'IlI;1tŽt Relive ManIueiylFqI ui\ el 'x anne,S. H\ de Benlin holbeil I lnlloil Rigohert Iadjikplo Rixltuxix IPol ji'l 'i a l-inebe Zilllha Bolixia [fel-imild Ai\x iii( -ssio Galli (idaCdian tIe N r,-adlo

Botsxxaia, FIUIns C. Nb.1 Oi'.IK. N\atambo h-jail Pedlro,Salil- ixo Nhlalax (CLIst\i I. I ah1issieil la ola Bxilaa.r-ia]t I)l'lit.-iui Koxtox Nhlilcti Nlaltleixo\ E3,irkinaPLayo Z.Illilr IDiabr ' I (i>stiix TiijLio mheoat) B1,1iriidi Tox\iSalaxtar Ncstoi\tilupxsa\mv\o ('aLi diaoLli Kc.te 'lioit Situ C1i Tliol

CL'aIitrIoox RlSxtinNdioro Fitber ['lan Relilti canmd PaIil Nhitint IIiigiietie luaheltl (CLae Vreide Anitoinio(hiaII-terto do Ro,jrio Ali\xaidr11- Viciral Foiltes

C nitraJl Af,ri,n Relb'li D['lio .Neitldj kiwBile 11utLaitiel l)oko+1ixa

(C;ad Niar,iai NI;haniaxt N H\iirlaax ,Ndaom Baikbit

(Clile idtilLii Auixut 'is) l:ihblo Arellatto C(hZilx LIRi/10li11li lii Retiling C~olomlli.] Gu.illtrl-lot Penl-%- I]>e Anlton,io , mii);lplo CoiorosxO aid 'oi,sstrNtl Moliollab ChiabnoAbdallli Halita

C(lglo C lenient N10l-nxixa}i\ll Antoiln' riti di

(:itjt. Rie. Fernmido H o aAe xAo Rodrlig(l BolaIto Zaitor-al c(te il Ixoilr N'Goilxa Ninilietin Kotaii \ iitor KoLizic t (Cioltija PTroxkkl ltsiim Kidiii (- pil (hlr1ist0dilo1s (Cl-iistoLdxilo NiutolAis NInIlao

1 THlT1 WORDI I'l N;\\KA\\I ' [ RN ( RIi 0C)i MeNitri I Gtn trGotir' \Itcri\t'latw C /ih Rcpuilic Itan Iktt.a,,iiik Ialn\Vit frl Pon ul Dennari-k iPoul Nwti ,k,L,.ns1e,11ano L)Din1iiti Niolanlti AII NMtilt11aiLId Hata Ablmed Glibel t NVillnlan D -Innit. a1 Nall t Ekiatilit Chl;t',( I ni-Malantin Plilntii Iioe iin miaiR

Ftonia t MNiart()jma 1n1nInnPat u ie titant'lr F thilpiaa AlkniuatcIte I)1a1ad \Ld Litl Fiji cAr-0att'i.el\ i1rihoho) Rig_inirte Tait, t rt Eiirla,,,dl 1,,,, \iiinaiit.rr Natiri Fu,,-, Irantel lranIO-Cl dtit Tnlt.lht ilrriatait Nitter R 1tcl1ii LI )llonlet Gahonll 1Pit -( later NIagaminia Nltussatweti C,ianihia. [ Ea,laGara ra lalititG \AliceNI. N gum (Gncltihsl (,.,,-gia) fla,\itl i I.'itDa1t,dbItitaia,11 (;wlIrnjit (Cjarl-Dict,:r Srri,iier Itinr4cSta,r-k Gha,1a K%%issah-AJt\uExt c-i, Ritclitt, ILtrl

GrenadaItint , RIrt'an N\OLanK. \Mtirav \Wilt \V Zalpata Saastoine GiiiL, iW1i\a (AI 1Vi 11 1inCd" NI'ina GLiMCna Nh1mlid IKanr1in> t KiJIIJa NaiiSJaIi CGuilrta-BIs5;ti Riil DhalJI Siuls Ia11Jircio(Oiit.ia 1i Nllilaltnl Sheer Ownlii Get\ anai 11Itr1rAt IdeLI) CcreIsttl Haiti aie Nlii rinldeRet Ita1n-NIaii. Hitoduras ~~~~~~~~~~~~~~GLi11i11tir Btin"ki lriar Et c Hunt t I-aji,;, kro, Altris Kot at. -, IncaIrd1t1 'illnni lniillgI lin EF,ti,-ik St1nlupLIti1

lrlit aIm,.,, I nt.lia \.laurintilrair Sinzgli NInteklt Shirab Iaint. iiti lIt A Illdoin n1\1. N Slalr,i,,ratl MNitlighi li an. IsamirrIcRep itf Nlhai1r1I,lalL- r NIbIMdi Nava-I IfatJ Is.airr Ra,-Iit.l Httaidh HaJSiimAll ()iJaid IrCliad Rtla1111IQu1111in Padd Ndtllarlkce 1kr.at:I J,i]1l A 1licnkIl 1-lil< l [)lai\ let LliJ ildt Itak Aiituito l,ii.it, \ rliii DF,agli

\Vesl t-x I I1i ut's 'a or a in i t 0I) ,1irlatL i t Vane N ,latsiishita lapair Niasas nlr .labtorti, ]ttidlrTl RiEn ,K1laitHUr iNlttiau1Jirt. mc Smnadl

AIlucl.MIN ON)c: 91 GOVERNORS AND ALTF.RNATES OF THE WORID BANK (cuuo'W APPENDIX I

h,,,3, ,!,,

in,eI()'Cl (;im K:iziiklistlit A \.'N'jIltrI S. 'FitIon \Iti \. Il, lt-ilcdi Kyri W NmMuiliNiidj\l .aJi Binjinin Kipkochlr Ki-,olci

Kii diau1, r'.t:li;,m.i,,. 1-,,.IR,-t ti \fi ; J II Kore~a,ReXlho u-ittnMo i iung-HoKime Kimn;it N;isscrAl'll ililihAl-ROlLtIC111,1 13;lcrMc-hIiaiAI-HumIl.iIidh n K\ie-\4R-pulibli, kKeolbakNaeItw\ ;Akar1. Sbl \n'lo Iee Ptoples DeMii, reli R btl-,Iic Khiniet%Setiphinomint oaHi P lit.m `itimtoi I it\i indltiNlmitt lih,Li .:iiulij, I.rh.lnbi:) Bl,.adlN.H Sini'lnia FI-eil (IIhuulak Ii\olliie NI.P. Scljouiiui 1. NI. Mlteklew

I ibeiiAtI i. ,\eIe\lia Ni. Wirld \Viiskoi K. 1lhrpe I.ihbti \lohewluuze A Hit Rl \1.I1 usli,i-aAliKhiallat I.i iliWiuiJit R,keuiil tu_lti SaIIliuje \IIk,,iwdre \VjIu,iiskS

I 1i tiiIuiii)im- NlluurFi>,l hb l \,.,tt Ni,tIla

N\[lceldoieuitioraN"ea 1;,,,, IHlt Ti Flue-iKomt ol

a Ugoslci Rep1Lb,.lic if

Nilatii A.ikc K. Banda Iaiks I). Ntlienmla Ilum.ilsia \iiieml- Ibtlulilil-T CliFford Priiucis Fit eibrt NjdIidxe Iutultall;, uJeIe'l ,\diiNIUMikU NI.Ili SOtLMIIL;)CD i >.' ls.ig.,i,PcInilcl

NIaltat mlohiDillil Alb it N.AtlalLi lrt-hullItiii&It Rebmmi1 R. Zi,khIr:is \liecI Koa lio•

M.Ilulitilnii Nt. I .(:h1lii OuiLl (IIiklh \Ieliiiiiy\ NI1IiuiIMi I .nliiiiii t(lLiJi IPi kidl Nijiritial_s Piraejliimisa Ni,al'isiotA LDhIuaiimuiL) NIliraN: Nlc\jvo GuilIoR11o()Itiv lo,k, luh;zln idtl;lvi .Iicrnciji,s F.' rLl.aid AIimeis 1. Iuititli At,ut ito R Pilkss Sotale of Moald.at \lcriiu: Sigii IKitui D)llitl: Iti l

Nlmngm liia DIteiowligi;,t ti 1 NIIid aiu I .i-aii iiil I3t iarlj.\ .

.\1,,- , NIhiliiii KaIKiij uNAldu ttlfu tm1 1lillSi il1

NI\iio,uiiNriailiuti Amij-i A,Io IkIsa NlIulciiin, Saaimii! (D i i N\i\

Nitili i ur Wina im liii Ihiui AtLi,g Il,%il

Nuoiii, t saui fKmli um.I a (GilIsrt Ga .iii NeŽSCil Flm-it NI.lui AiNllu.ikei RT bluumutuimuti

NothirleiIiis l(niti >uilii I. P.PrI0I- Net\ ZeiLenmu Nulmi:it loaw I.li NVhituheaL Niciarguo F.lnniliu Pmiviai ALglija h L'1101rk Ihnal.a; ATiiu Nige\ Alilmaiitiplhu Sbmuieuuila iBu0,iLluir-Nlr IMi S,11i CIuI:'- Nigcniti Anhmirt A.AmNa;iduidum IOuis "JiatWit bm\Nhjriu hNiiN.imi IAuR-itiyllueiiam-f;lsLim

1"'- T -tivkNRlii B-mF3 N NxNI \1. 1Rhitfiti lPfEfE Nl)ariaiil (i liti lilt' () (G.",iilali . (AIl. lt1i'd Nvliai 1, Paj,ea (Nk Ciitj. CVi1ti; th.i' [-111ii-n ( ,-it a A m

PRleinjti- (llintl LI ei ',nll.i II Nuli,Liet Jiflar 'iiies l'hiitp1 Rttl'Teiu- t d - (i.t)tlm 1t (,hii I( Sill"(t)ii Ptllilld [iil[nita (2 J,ni txt irI-\\'i]p ' \\i id IKtt in),,ion PolI-il LI Ril .imu., iI,L' i\ \]tleIL 'JI tl. \.It IIILI 1\ I /ItIlI '%

.itair t NIhutianiicd 'iii IinKIitfi .\1-Th.atii AN ilalih IKhald --A\tti; iii Rottiii,111at 1ELIIi[It (tIetyIt t\y" Li N'lIIdIItI IIStar,

RLI,1it k , it Ii,Iil ",ItittIi (i i .tii NetL_ N11,111) alit Rttitrz.ia N-tLl.tOliar.llR3ilcni'. a [:gil (.Hit i(iiinh R\.\an,h \1.11lRIPCI, IJ PI'I I' 1,i(11\V-L'llll...... ` kt airtt,id Nitllktit,'. A Sintm n,ti1i \\ iIIIiimi V H-rih it

"t. 1.,t:,1,11,, (,. \1. ( (Illlllttll /t,]utll 1,,11, ,

St. V'intlnt jal dI I i > Ni It-l [ l \ glt VNit II-. t

the (it-mead i Pi -t 1

Saudi -Nliah.a]' \iititanMi t 'i.AN\u(lkh,i! l.d I a-t \i-Sa1ai

Se\t J,lls It.,II d- '-t. 'tI, F.InIntiiII1 L, LIIl' Siie.ii I le l ti.XlstN 1h IKm tiiuui •iiii.ir Kaiiii

Sillitlalrpte t Rieild He I'>l IIIII N,liuw h,n-- i Slx\a,k Rfl'ti[ui, S l-' : KIit'll, N I.iiiui- NIta1i-

1Y,I\ilal. Ml\LItl 6( ,,Ir[.Ii 1-w,o' 1,,1mI,1 utoltttni lannA 'II i'triqij it- Ctti;iitiui'I, Nh" \Iinastt11 SIIS \IttIC Sittllwlij (',I lilt I (' it imltl 1 Stta,th \ia I hi->tt I'1,-irt it, ReiN-re 1 ,I-t,ritmi...... it, ,0\1t1.t (1-,,t- I, Spain ,"'h P.ll-u, Mit,1'i. .Alf-.lcd 11,...... 1"',tol 11(,Jilot. SrII ajitlk ( Iiniid L 1kaatdi,iiiti K i,miaiiiituLT,i A S. 1at\j id-ital, Stiti.liau'lili I-uitAbd \llLHii S1.F n Vimilit I MIFHaniaiiii -

1 ku.Iil.]lLl h Ii,aN.N NI1tit,Ii).] .NIFiutii.lait~t LIt SItiiil; XIl.l St riailllttAziazil- Rep1e4l-lit Niitiiiiti.....itir h e NI-laat ii :Ndai -NI-Satti SX.1t\C ,1 ('1.11 P)t I S1)n1 Pi...... )1''.r,% 1.ol I

ST,It/tt I NindPiiN 11it I t l tit Kit a I tti

S\ I-i,III AI: .lnlll'iC. XRmII . ~ M lulllvc lmlcd. AL]1.'1\-,Inhlt,in...... A.lil,a-S,itti

Ttiitgj Kiaikiuli T,miNtLiaJi iAiaitiJ,a\N \' .itaRklIk Ti iniiii,h tI t a \\titi,II tItItri I. ANiiit tuui -Hareit (,id

Tl-znztl."l.RzalFlXl-.]

N1inX1r ( ,

lTunde A%tol-r iinta,' BolenItLI ( ) IItnn

TLruIknI)I StanIJ ' HLIJl Ir.IIA\. (-) Jut .A!>njx IIZ,I1 KN Lji,I.

1Llild'i 1"hoLIL,11Nkl\aan -\L-Xka ,kloasNIAW i m t11I 1. tuithilt I r iAnHt I11r Nlii,kt 1(xiV 3rdc ie>> locke tnitrd AraB Fmirate, Ianrlai Sin Rasdli AI-MlAktomlinte HLn Al-Tal

tllitilCiln IMi-IrTlloni[cr thC aLrk BaLrone-s ChIIlker 4 WdlidLscN I ltitcd State> ROe!t RlH.B l 1;on F. S!erlo t rtigliaL t lIj N1 > aI Ar-i(l Dat\I in.e 1 I a. m'kiitanll Brikl;ltivir S Iitittinlot Vt\ teleax A. Giolesh\

\;lllVAn tmm \:;Willik iminut AnliOTiln t'ikotin,. VyIczicAl l t [Am,is RAil NI ;lay> A/0Lr Edgar-I llilnitiel-toP'renies Pitlai Vi.t NaLn (a;o >\ KwAnn 1Ii Nan (hIaLn \Vtsti'i at I;ila;cal u31 j I S. NMalil1.gali 1,lEpaTtioti VntenlC!, ReplblMlic ot Abljii K,idci kBaiuial Anytanr Ri/l Al-Hal/zi ZaLire Pat -E \V S. limo KaLke \lilmte->Kini-NlUmnmi Zaobi;, Ronald I )Daiiiii Silani Pena/;a lie NI. NIltolngi ZinmlbmIi\x ,N. \1. (Calnabai I r.oar JsiI' lasl m.1iblSl);l

t N\ t iy mcn tid if !

I li THi Wmtl)RI 1) B \\K AN \N I RtItl 1 [I S ExECUTIVE DIRECTORS AND ALTERNATE S APPENDIX 2 OF T HE WORLD BANK ANDN THEIR VOTING POWER

Iuctcto r .\lt r att:ut ( .tI/Itfi wtotc,I'I Ottc, totalI ottt, total

Appo,itted 1 Ian1 PlierY% I/char NijirLk I Ititd SWt/f' '8f)I I -melft) I S61~A]1

At-nIoNilt ta inn lli ki lpnK/2f ft Il It) 1,211 1fI

\lam-.Antoinit .rAl d C(in-itvti~- FimInL- f -I fts 42ff '34 4I I

A\ itIth i l-i1 t

-Hut F\,ans D,atid Staittti Intitt-d Kiittdomt 0 tf,,4 4 ftS ri t-f)-4fr .1 I

At'UdiNc Ft, I fl,, Rin;RzScrgk Kuk)J]k4114 lx Aim ma RUilMll C1,{I)l 4111 4 1,1 HIe ted

0 Walte r Ril il,il.,-l P/i iPtts .Antria, ho ri't, B 1 n, (C7 4 I) f 1 -t 143 f i 1444 lAusti LtaI KInutim) R, puklic, I \o~r, inItt , [I eeI\ ihntri0(I SlmtsakRtf, i/ (C 12,tll,ll.. z,ln,, :IIII,o B ic

0 lNt tite[ tkLiS (Sertir t 1 l-it, BlGWtia, (kll M/fa.f 1n 4ff -I tC

I [raMeI` (fI

Itttiitl CLiGtolI \Vll.'totl (t\s A:\itltt4LI LIial l.I ntz luttl,t ft I /4- 4, I 4223)34 4 ft

C/is ann, Ii tIiitLl . lamaRa, 5t. IKitt, aiiJ N,\it> St. Ii n

Sit Vitcitt'tt It3th, Giten,itits,

ItrIte e rllIa I G l ItIl I ( Lt ) t -i RL, ll, S tsnLltttLI (IitI if I\ 3l tI)It4 422 (IN sItL1 (Ist-lJi, maIn I ItItLItI',I Nl sII:,t,ILN iL irt.-

G(J/Ittt/tI -111ItII]Ltt iJuia, Itita,Ita/ii. V - I

t(\PI imali'dcnl.) Inlt N NIttIgihur1-a-ln."mds Ralimnit B;l.ul.>itilt ltait--, th]Sl ,l

En~/"C (ti tIIi I (?rderCIt-leita ANIIllnti, (3!"-t-, \nx,NIIr, 343 f4330T~-f337 (Port-iutal) taR)I Putitit- 11

;\,LIliilK I rin I aU/li) Fat,imn[Ira, iti A-\l,tliniistni, ln/,5f 5 4ltrn7'f1

P,kistanI I ~ I (Am eria Irmit(F,Isminn, Rep Iibic of1, N PttL.it,aki,ma Ttinitii

RHi/]fJa tJhs Ileia dt)ltt( i LDeiiuit,t.rk,Lti.ti,i,. IinlInd, 4).11 ft/t 3 3ff 42f36 "4 4 f/

LIL ta',II/ta\ N titieitrrt Re1plit,11L, .L,taLolrtIIlait), (Bra/.II) l(Ctiltilmbial Phultlpptite,, t1 imIi,it.tL

IL.tit-l'Iticiit'l (it-iI-r Ittit SuiIri ki~k' A rlt%tnlitit,\sti,t- i lAiL. 4SfIlfI 3 f47 Itt 3 42 (SxtI Ltt 11iat I PolaIIll) Prtlait, Sk%it/, rLiti Tailiki-ani

A\-f isI )f\ TV, / 1)5I EXECUTIVE DIREC T)ORS AND ALTFRNATES A ) P E N D IX 2 oF THE WORLD BANK AND THE I R VOTING PCO \ rER (cmtinthilm Jimc 3O.1() 0]_

IBRD 1DA Ext elitie TittaI 7 of Total Iiof dliret tot AlteIItiate ('asting totes of Itotes total totles total

LitangSEtllrirll.n ZhiI CiatnIxII a nin;m{)4_6>11 -15 4') 3.t2 2. China) ( China

ibr-jium A. Ibrhiim NI. Sarii :\tahia 45,(1 45 3 1!2 7S3 . 3-10 Al-Asntf :Al-N llcith (Saudi A,a.,ia,) (S.imli Atahit)

Andit-i Bi3nin ilituniti N,ijaik Russiman Pior,iion 45,j(W4 *[C1 -`,2s 2 -2X R ussiL (N utssiai, Fi'tdl-ratioill F .I.tii.tin)

itoter WN.lF Nin l,tll (Chrtstidplric N Arisri il Cx. d-dnlli., Kinihtli, 45 ,24 *(12 28.3liS 2.S5

(Ne\xt Z,Leloiti) I ('!_g bore i (Rclnb ,iiof), Nilat'ilil

AtIstialii) IIJaIziUsN ItiIk oneI iai ( I: tndtLi tj -

St itt - , ).1 \oiirolia.,; Nra'\

Suitll:,iJ1dtit tn it RI51 tits, NtlIi \:.ltltl%Guna

\Mtst.I 11 'i;lml a

haald A. Nioluita e \XV hLiti tin i g! pt, 1il- h Kitn ait, 42,()4- .,2 2 24a 1 2 -14 Al-IKh,lkucl Fi- iym .d,iottn, I i l ' NilUhixu is (ItLmit

([LIWLIit) pl>lt) '?'-X.S Li., Aiiili1 KC111-11111

Ri3 liih l t) i( oti Niala R t,rt . IRi'r ni N ti tran.Netti

H;iiti. \M. Ittajuirrt R. :ngt .i hiisx\\tLitta. iluit,li, 38,566(.J 2.5 Ft 4 2 Niapondoi i . LN11'iiiII ( , 1I, ir. i, I .t>i tlt i:.i'til,

( h I - l Iit'tintlI - W I (N )s a i N) 1a'Ir1\J, 1 tWliC, I'Llia,

Ni.itria, Sex tell. Sie ia Liitit.,

Stiittir . Sixs.a,ilatiti. Iarti,.,.iit,,

I ualixi. , iZZr1ll'i;t, Zii1rl'rLht \\t

S xt1%nnFtas \i d Kiittirii( ait Tl inrit liii Iirt.ittiest;i, I'lie ople> 37 753 2.53 2' 44 2 2.SO

(Tiuaulall.li) (Nix. aixnrai( l)tnxott itit RspuiiKis Nl1\1: ) Nit tint,;,- N,' iil Siitt;ltytt.,

Thmhlit ,li i;on,Li, \ It Nim) 8 R,li, Nite-,s CarDs teireri At 'nittin. Bolts iai Ctil ... 3 ii5 2.43 I182,4' I I 8(1

(Arrr t ntiira ( (I i'ira" I;' ta t'l-lv,r ix it' I rlirrax

Ctollrti is) I Diihmiti) (ColA N t. U,t C litti AIt i li R5i i)ri\lk (i it us Ni i Iuri,ritiCi gi (i)tt L I oi t lt isNtte li, trUato-

I-i., mlilt.'tL i "ldl,I ift ille'el-

,Itt, ,Li.,t,,i;it, , NI. il, lri

T\L:t .\ zILR

]i THI: WV(RI 1) I.\NI\ ANNI \1. Ri I'()RI l]; I Jtj IltI(n to' theCtil LIteixttt 2 LItj Ic te II-c il L .II ntt iLtC IIt i-t\ it tIe folg .uotI IIIt. 1 tII i Cipter-O tolhtc -I 1 1'4

Exe oI i%t diret tor Enid of period o01 rl\ ice .\Alternate(Ited eutor Endof pe rioTilOfo rt it e

Jolh 1-1H.(:o ilt\ N\LI It 1).t1b AI\Jt,tLICi N. L)Ptn1111 n No iuktith 1e 1)"(4 (,tistrli.t) ( RL,S.,u i I t F. Tletitti il

Y;I%I!UNUKi 19\idwiatm Nl,!%71. I9J)s Iledll];Nl 10 S11,I %M[ ', I . 1)9)5 (.apliilit[1) iRotm maii

I l illrTldR hitl NLi ', I. 19)1)5 I G.leiitti Ix

, ACISk j.CIiNetEl ' 1 4

( 1 .7 r1aq 'o - iIll ' tt 3t)i,)9) 1'tt' 1,4,n,t, it pintl iptit I11 t/- 1ri ) lit iliN F! ttn 1,LEx) 't-nil . L,tlt-ot Atti

II1-3 E;rk71i /- IH-- roticeoiiE c il 'l / (G(OIanIit i .3 'intXE-k') merIpp iDt Ii/to ltttt IiIk tj ct'10i nttio ''I \.- lirt' I O Q 4jt, 1 5Jt4R-9l, II, I,NM fE e vi li*1r . 1, IY. 'Ilic,0Cf1c.I.tl'!K.b,-I(,, limellt,, () 1 -,- (01Aitit" a, tli .- 1hll, I I OL)t

.17,bet slfctl'I\t't/ /! /relkg' I(Ill 'ar ') (Dcitma,,.tk) M,,c'ti c- liAuo' I I O)t)

1'71 I't lP c{'tf l7!'[_,/-iwv(i M.,.k,/ I&Mil,rit) rw.l c b.ilYi I 1 'M)t)

t,\[sI/tElllJ 1'9 l9,- oI.(t.5, ( .lltilJ, ./ 1ll\1) 1 1ot,lltil-l 1 ')t7 ,\1,.9tt1 OFFICERS AND DEPARTIMENTr DIRECTORS APPENDIX 3 O F T H L. WNIORc.LD B A N K

hIoiwt' t() 1t0t0-

Pf,-itiltnt laiit.c. D \D. tIn ½ln M\ lgilingi Dil ctort RiZth itmH. FiLink NjI i IIgDli i tr (GntaitIIIS KSLjNI Nunl;llsit I _til S etntSanijdst1nn

Vi'. prh idclitin \lI icila FCI- taiJ V. K. IaLtvj\ Vi": I esit-l niti('ttlilltait il, i and n mm tt iil A,ikisTti\ Sclmi1Cc I liittt FikCii \it tP I' itltin d Cmtmit(' Ilt.-r 1 it NV\\tiis

V\ t [iPr t.Iellt Lin (udC-hi V.i,PA t ist, I)t tlnpmt. t F. iittniict. Nlit.il>ml P. RIlmili

\ ic P)r idtElltFj i-t\ ,i ifLI I ;1n.t),I, ii ...... ,. R LII 'i, 'I ( 7IIi' ' CtIILII1. Vi Pit. i F nit I mituFiniitnmetLilI Stiu,ain mLiIt:L)t.t lopilit.m NI I. lntilScia.Leldil \it.t Pl..iI-it 1i1,ILltipe atl.l (tiitnil A-ia, \Viilil P Thlai\it/ \'i. P'it ti!tjtt I iiin>i Zn.:- Pmiitt:i S,,.(ti' D Ji-itjettmi- t ii i R.,an-i>aisliah. \Vitt PIt.CiLtIt.ntI inait. id PEnlic.mid RcstttiL-c Nohili/aitit .ItiLttc F.I'.ilm VicePi' oiidnt Hiuman RcilR. irCt-t T I" t.-xt`ltnL Int itt i () t -atiti11 iP li, A\llmii a NI.(-Il hksi V 1'I P'I-,'< I.L1I,l I Z1t I I AIlil 'I Iji l;11 LI Ill LI]-il>l b ', I S.IL1,'llRL i;,-ki S itiliol\ PI' -sidtIIlttLinl it Iin, itttiltl lhimiiui F. 1.Shillita

stiliitil NVi.c PIFi id.it Nlain lia lt.'-Ct an11d1PIT-11it1c Sti i.t-L I" S.S li.titii iHlsiai F) It.smdnIt NIIidIt -I LtI IIanI N I Itlt ANI it a,i Fbi i I K.tK it-\Vceri [lip tte F tt l (it.Pt01) tptLtittns Etmllmatitnl Roboiut Pitimtto

it, iPrcsit.iti-t SithmAli i D. IttcI iih\ Vic- FtPIts,idetiuLin iitm tLlilltir it.SsitZ1a Firili hti

Externaizl Af airs

Dil.to,; P otl-ll-muA lais iN-pal rinit-it NIlais

I egaI lD l>pimt!Ft. Ittiiliiill tLilts:t FA1,i F ,ltitlltii Iradil> AnDit.iouI.,Ki Is!in llit D,-put\ il.]tSlC L1(wz.1il,( Andi,t,,, .l.Ri,,,,Simdi;i

ANiL,L itit Gt. itt i (t ls AtLAI 1t.imilistmatittnl inIt liittit-iitiinal A-Nmi,,s F\ta I..Itiji I 1 Asi-LLSUtt G(lt. it Ii FTll Liiit I lllalil. St1-pittI-iLA 1it.R1

A;sistimitt0 itn rd( itil1tt It--l R.-tmoiaLLind A i -itit\ Surtn t.t Aitt.IAtd\\N N;,ikimik A,i,i>t;imtGuncr-fl(Xev>l Coun,, O ,Litilos', Sli, i-it ( )ipi;i Hj-i;ml

Setrete r v's LDs-ptit S`.-ttit \it(W1tt1iJ1 ('ipt iaitmi, \VEatliD. HEldditd.Ilt.ii -/A

Afi-i(a Regiontial()ffti( DiikViir: Zr,z ilit.t.-l%

DiirmLt:t I- ii Aimisi I);pitti-tt: LTihaiti. IiAitisi; Fthitpia, li;n> W. Adamii,(etf -/i) Kcii,l;0111,1 1LI.SUL.LM,, V;,1111,,,iJ, ( 1'gII1I;1 DIirec:w, li--ltfi-l \1AImi.. l! -iJm.z (-)ai. INpa-tntl.-nt: tutulli ll n, Aitiititn.Aittirci PCPR. _st.lR-ssti

L_c,iti-.ll Ati iLmRq,uhk, l.(- d;VC+lomm o, (C-onLgo, f'l;l5ill (4,1i 1,' FGabton,NI.it.iinistai NIlmLiiitiits I n daitti.Su\hs-itl. -nlilt LDit-ltttt, W -st F?.itrmzlAttlita Iicptiorttent Itciiit, Btir-kiita-i:,imo, O)iii Tr I ,ZI1(ti ;tIii&k.

Ft- tJIt \ itIic, Imait . Ni:4>, NigtiJ, TOILtt Iit tttLt. \Vt.-strIi At rir LaL) tc p tIt tit,t FIm"I V,'t].-I li-I' F uLIhiI (At.iLIt.Im, (LI, iiGtL.Ii -BiC,R-I a SiLI n Iz-tj-buib Si Li. 'l-iii, NIlli. NI\ltivi 1iiia,S mit Ttmt'. ind Piit.ipii ' . K-i.ii. Si- I lietItta l)nti.-ctti- Anita-i T tl'.h it L ) tpai1:, t.-1tt Kit i NI C1 t.-at-r

1 TLI11 r \V\'mmli.) B \NK ANNI \I. RilIlRI It0') Asia Tet 1nical Department lDire tol I L mild NV. iessenge

EastAsia and Patit( Regional Offi( e Direetir, Countr Deliartment I Cmbdiadw.Repuls1i1 of KrTea,l-o PDR, C allidtaF. N i%oad: Nlalaesia, NIeko ( mInsittc,III NI%aunnia, Philihppinve, IlialandLI. Vi t Naiti Diretor, C(iuiintrs Iipartiillet II: C'l,. Nlonlgoliao Nii'Niaio - Bylpe DLiiettr. -Cojit i I eii 1itnleistIII: I 11 Ilntliteii. Kiril,Iati, M\l-ia1i1ine I Iem- lTh NIarsitall la tls, Nli-toi si.a, PpiMli Ness Guincsa, So,lii,si'it Islandlls, '1it-.1, \anlaLtOU, WVLstern11Sai,

SoLtith Asia Regional () tOftfe Directr, C(ounti\ Department i: Afghaknistn, Baitlali ,P,laldis en 1'1i1Rt nl11l1 Pakistan, Sr,i link,i

Dir etoIT ('tIIIntr ItepaiI ItmeeiTtII L itain InLdLiaNI pal1, Hh, \Ii i,i

Enrope andl Centrall Asia, Mlitdlie East and Northi Afri( a Regiols Tl( iiiiitalT Delpartmenit

Dire.t, ii ;AsitlSaond

ELuropeanlt 1 CentralI Asia Regional Ofi(ce LDire,tor, ounti% Department I. Bulgara,111-lCyprus NaUteILCdonia,(tlo i- igsla RAdIeLAI 1.o1m\ Ropul,LL if) Portugl.J Rum)ani.a, ''i1rkC` DIrI-to,r, CUnLIrx DepaTortilmeint11 Ailmaita Bosia.-I lr/egs man, Isemall Del%Is (iroartiai Cdci Reptil)t.LN linHLarePiLand. Sins al Repulilic Slot ,ia Director.t du(lntrx IDeIpaI-to`n111tIll A/eTh1ijai, lKa/a1I\lSta111, 'tikoii H-ania lKiig\/ Repuilii, RLusian1 Taiikisti,li I-dirratincilrienistlt , 1/[l'ixki\stit Itiret 0or, Ct'I)oultl\ DeprZtt-it,nt I\ Arm nia, Bela-ls1ruItniziii Ceoi,gi, basil (, KIn aiski I-atri, lithuania, Nloldos a1. t'lkijim Diret:o;, Resoi rte NI'lubl:/jtioln ad Prl tex Settor IitassanX1 lopnieit El-Ril:l

NMIitidle East aid Nortili Afri(ta Regionil Offtti( DIr-etto, ('oiCitrM )PaLIlttent 1. Alge]-rLi, ILaiti, Relitu , o0 I ria, Dael,I Ritt,hi lab:a, Malta Niotoes, Tuiisia DiieQtor, Commiitr- Departmenilt 11 Baltrai1, jgs Pt Ia.1 rtl at11, I etKltiK Sodl Kimsait, letbljnon, maii, Qata,17SaLudi Ar-aia,I St I-I, I Inittd Arlb -itiiates, N'i1eun Repulihit

L;tiii Ane ri(a a ndl thle Ca riN ican Regional IC)l e Dirtc'tor. Countir Department 1: Argiitinii BRra/il (Chile. lagii H GtgatCsabiitd T Nitkaiti Director, CoLinti s Dtepartitit 11 Costa Rita, D)omimita- RplCilIt1k, Fl Nilvadni. F.dillit t,u1. Segura-L C,Liateila.l] Haiti, Hodrs. i\lelt Njeadarsia, Pancanita Vcnenl\is a I) i ret t or,CountM\ i dpartlmillt Ill ITe B11LhI11aI1 itt a 1aabt11 le1siiaiAS Rolivia., Cjril'l2ean1 Des elopmtnt Biank, '0111inia,.a . t.,a , C a,1111 lntmaica, DEC(S lumtbIer Stat's, PeILr StIriint i stl antI 1 igo Director Itil DnDep.irtilti llt NI G '-ri-Rmiit Ai\i

Cth na11itlog aILI Fitinamiai l \(isors Ser%ii es L) lieetor Rant Ku0tarCopi111,11-

APPFN\.I\ TIIRvL. I9 O FF I Ci R S AND DE PA RTNNi E NTr DI R ECTO RS APPENDIX 3 o F T H E WOC) R 1. [9 .AN K (K-nti- humw30. / 993

De%elopiieit litt It olii ts Diitt>LIt-tr lyn%p nttm Pioih NM k W\.Bmid

lDuctol- F.wonomi,IVL lelo lAvtltn Jnl holTlm,;

[Dirie w [ttltttLitwlt, DL .I oimn In iitm,-n1t N i.....I Ahinnyil

D)il- ultl. I' \li!It DtI p -ti -lltr 1Ftn Stuint

A\Imininiti .ol RLtt -,L, Ai\ i"-Ni Stjrt ( i K.- l.iKini

nNironnienitilx Sutstwi blhi Dc%tIoplliLeit

Dir,cttt A,riwIltL1, a1nldNVtriiw l R 'l,miiLe' D)plirti ,tlnt A.lt\iiLler F. \McLiIllj ift,-ttl- ii ititiL Dlt l ILi lt AL-1rjtt- F)L* t F Dil~ ~-liel~ ~ at.l~ ~ ~N;ttl;]ll115Ln ~~ m It 'ib L)l n ( lkyml- nt Dc '.l-ml,monlt Andwiv,l;Illg ii

Dirt,tori A-iiultuitni Rkt- .oii (jroi1 m MIAiI I ltit I2\Ltit ltit KS. ,t t.,, .. ( .lliltLitltilt ( uL()l' ;'ll Iitt-i n.. titliu.I Agii pultulr.I It , LI AIA \ tniXdl \i IIn 1:- 0Atlt

121FniltlC1e 111 Pritateo SetoIr De IolIplHILlt

Dir ,to Fin.17 in,l I StCtot [D- pm-nt L ipltttlenrt 1I.-\ PeIliln

Liii itti Ih ltuiti\ .ntl Fii,t-i\ IX)-rLnm iitt Riv I tI 1.) Strni

Dir 0ii Pl-t i\tL t St DeDt e\]ttuintn1tI)Nl,mitmciit NlaIdi R. kzitndcr

HKumaitn C aital DLe;eloupllmeilnt 11d ()0eratill i'sPot t

Dir ,tilt P \ iiid SJtijil Ptl t\ DI-lpi-til-li-lt Idrlit HeLsuin1left. 7/L Dii- o tor Opcr)^5i-tionllPl'i,\i L)l. lltlt1 N -iLi.AlI ;\lmd'cr(d 11.

Diri,,toi m itLlLiiiL)r\t'- 1ipiiitt DcLtF wtint- Etjit itid I I L-lultti LDir tin I nli LL NItlil,g-inittti,; 1Cip ;\lIsttFlAlbit;i Lt

FinalttL il IPolilt attd Res1urte N (lbI'diilizatiili

Dir tot, RI-tin \Nh liiuution L)%piuiticr-nt P'iJli LDiii't un

Dim L tot Rik NI ii,ig iLnt i ; nt IdHiiL ,i,i Pli, LnD Lp,iitilicit NlAekeNi jl/nui

TreaLsti -elrS lIi,rt -j-r tYis NClnh nm,iit I )tIp;tittni-itt \\Wltti Pi'%\Ii DiNreLtti, Fiiiil,;idl Opcitioii-I Depli,itmie L ILit NI. Rlth,IlL -r)I-

I1irT- rT InLl ,1hiit\U t D-p;l-tillrn -r. \Vt-Itrlillie I it lr diFiL-toF>PitilsitllI p;iIiiient A-ttLieli MNIuwsIlikhlilwtechloss

(Conitrollei's

[DiliLtiii, I ittlntimit Ltepui ttilltt NlidLmtcl I. RPtdLtt

Dir-tLrLli I ion [),tL-patiltnt t V. S. RAL-jti ,II L)Hi- tI lf PIMI.,,,N, Ilt 11L r l tiqg Dcp;ul,mtilt Ric.l L 1I11

NIan1genlilenitaittd I'ersitit tel Ser mie(s

D/-e ; l,< ;. - i D itlltiltilt Iii!i I. Sinl !ois 0 DiFL-tit'l I I1idItutlt;lttt t itstlt ti ll DtLlF;llatnieit FF1Lilt' F H zLiw Ll

Dir(et,toi; Hi-ltOi Sci i-- L)L-.p-itimnct RIIltmFLi H l inc<

Ldir-t.ti.+ ()lgult.iz.tirlc ;1nlt LI[ itititin Ftiutrtet L)t-umuiltittt-it liii N. StiLLtt L)i- .tt,]F lsex mid l+rlillh\.ll P)l Z., 1-t ,l,tt L)pltl l Lill Ah ,S-l

DiT L, lt0l PILIsot1Ll Si' tFI - itLI (C lilt itlN;tlttll I 1-iIi- lt ( \V wLsst-s

O)perationsltS llotI tiolt IDiL- t-t C)per'lti,lithI- Ftu.itiii; DI)tl[imiFtittilt hluiLitL Argumi L--S;i,,i

20(11 TIF \W IORIDBAN K ,\NIK \i. RI l l)R 1'! ')' OFFICES OF THE WORL1D BANK APPENDI D1X 4 hinllt' ',). I5IR5

Headqualrters: ISISH Srtr . \ W\Vasbn: nit in. L) C' 21433 I SA

New\ork Ofth(e: Tc \Vorlrl B anikMl\iin to tib f Iinit .1 \aitionn/N'ct York 0lfiti,. 5151) 1 iiiit, \at:iinL PI.aa Sni, 11)i Next NVwi NA 1(1-Gu 15 A

Eropeani(Ofi(c: TLNV[',,ord - Bnk, i.I I I,a II LIC ',D I l PirII-I, r'Ir :ll:c 10i)

London: [beli\%orld Bank, N,x 7\caIiid [lube,, I Sill Floor,Hat\ market, I,inji: 5\\: I 't-lAT Fi'n-tjand

Tolkxo Offite: Ti \WnrIldBaink. 0,], J]ioiPxiri~ itn iilnli - ,INalninji -- lhom, (bivmid.-ku, TiikxI Ix 11(1,lapin

Regiona.ilMission in Lastern\frica: Tbw World Blalk, I fill Park BiiillIInL, I I ye: I 111l,Nailroi. Ken a\l (I1nll4, IaieIddrt"s P() b(\ 3-1

Regioial \Iission in \WesternAfrira: T[h \WiTir11P11ink, Cot , I d Bonkcr \\\nid lii iL ,L(LIL*A1K,\ Sircctt (L ndAx A i l)xidjai

I ( :c l %norT- (Inllliing aiddrltm P. ' IS5,iJ

Regional Mlission in Illailandi: Tli WVrl Bank. I 4li Fl!iii LDicixltli,l Tix cT A, \iliI I3 - Ri,ta, RP igknk I 0',(1 TIailind

Regional .\lission in Latbiai: Ib11 \VWtrll-I Bak , Kilku Sti et, I . Ri,i aixt\ia 11 H

Baltitm Reginlall Mlissioll SaOtellite il l BIteTstonia \',:\V:l Paixk/Nlaa ilmlitui ko S. 11i:nn FF111111,I tonila

Balti(s Regional M\lision Sattlite in Lithuania: III, \\1rld Bak,Vl 1nia iIsvSir. 28 2111)11Siln I [ith-tn.1ai

Albania: Flb WilYILI Bank. iD),L.$1 tnrTtC A Slklil-tit Ni 34 Viraia. AibariLi

Alglol: BJ1Ln \(li lial RLtIl Alfrdii lfrriom(diiti,i RBIt, 14 Andar, C P 1331 I anda, \n1gol,l

\rgentina: .ti1io I\lMnLli;Jl A\xcniJ, I can,lho N A\l1n lt2S-i [-,, I12- L-, iicn .\nx ,1\r1it tiAr

Armenia: ['beL'\Vil ILI Ban. RcpubliL St,iii,a 2 KIol ItaI a Strict Ncriz1 l ItH \Al ,ll,)

Bangladesi: Tli, \WoirldulBnk. 3A Pxrib DItllAxaka (liIi ,Batladesh (IIItiaili aLI IL >s (, PC().L )

BelalrLIs:'[A Wv11iI Bank,GAl Palti/nLIa kx; A%L Ilt. Silt 1lnie,NIlntsk 220'1)33 RCt:Ix_b11of Pcl,AIIs

1 [Lenin: Tb: \V!tiiId lBak /an1inc ½ ititicll 11. RC.i ti. l (joittiltll, Be3itii I nailing addr11s PI P 313-2112)

[olk ia: RBLtLci\NlmntLl:l, Fulf iLa lBIS;\,P 'miLI, In J, ili tIc S 1-1 PaPl Roil\it nx11ailiii4 a]Ite-st C(isill, S['12 I

13ra7.il: Baten l, nIttial . Star;l (Cdiimma--l Sxil, Ctx:a^lal I, Blxti II, EdI.litiLi Nliittti \e'nxeltllxxiS .\nLta: P anIta.+LII -3t13tdii 1

13]./il

B3razil: BtiilL \XIItbl-11.1 Ax, 1 i.: ;a.RinPixoxias, NoI 1 -51. IltiLiiNa, (inn] l'aliP I,1 Salat 0113, 1 ctiii, si)4 -(,4(-(i1,xiil. NLaIti (GI"sa (I I')l Bra/nil

Brazil: RB,a,i \Alnd11a1. I1 E. itiLii SI DINF, (Fidiailid L IlxiNCc taria, 5(1t< l-0' R1 LIII PI., Brand111

A IPINitI\ Fot R 21)1 O F F I C E S O F T H E W O RL D B A N ((mtiumi,l)(o APPENDIX 4 Imw 3v (99)1,

Builgaria]:Thet \\mor-ld Bank.l< Wor-ld Ti;tl ad C'n1tor-Snha, 31 Dra-;gan'l'>anko; FAvBo e .is iii, Sofia, BtiloaiiaiL

Buirkina] :laso:Tb 0 \VorldIBunkl1, lImm blol

BR,-ciiLI(i: 'lbo WorIld Bank, Aen tie dt I S op tombhro. IB j rIIlTiI I,ra BRLianndi (1mailing .iLdicS. B. P.2'k-3137 )

Camecirooni:'The \Vorld Bank, Ness Basins.P. 1. Bitsx 128, Naminde,Calient (ma31ilingIdklir' 5: B R I I 7S)

Central Ahri'an Republic: Banqc.eNtogindalod, Rueu d0 \li"i-ns, B g. (.A R.

Chad: T'hl World BLnk, .( ). Box 14f0 N'dijinmn, ('had

Chinai:Tire World BaLnk,N. 2 Iil 0[berng1l g, Diam uta), Stite Guest House, Bciil,ldiit No. 5, Beiiing I10I830, Chlii (mailing address P1( Bo\ Si(2j

Coloibia: Ban1oNlundild, DiLiaonail 35 No, 5-08 BOgoi:i,I'E. (D.F.'lot'nbia nsa1,iliiigadilie: Aprtado Acit'ec ) )o122)

Congo:BaiiqLu Nlllodiuoli, ImeuHlo Ark (hin' Ltage ), As onuL AnsiloazrCaLbral BRrais lb\ (inin'u (madilingaddrel-ss. B. [ 1-5n36)

CoStaRica: Re-gio:na;lIMpliinainio \lEsionl-Buncx ludialV B\o,ulesCirolRohrmotrser, IS)) lits. nest' Residniscia.o\- P'iesidein 0Gs-r Arias,'i,ill Ios', ([nsa Rica (mahiling,adl ss:P) P. Box No. II 11 006)

Ecuador:Ban,-e Mundinia ([alle leanLeon Nlerai 131) % A\. ('atriia .di f isaCorlol'oak isl Fisianoicr-aNacion.l, 6ito Piso,Quito,

Egypt:The \Vvoi'l Bank, \Woild'[rude Cclntnr, I l'li Cornilie Il-Nil, 15th Floor,C?ai',, lAgs, t

Ethiopia: (li- World Bank. Ahi-ia Ascnuie, Bobc, AddiAts .\bIi, I thibopia (m;ailingaddress.P'J Box 5515)

Ghana: The \World BaS,nk,99l FiglhtlhAronLI LE\tension Northiidlge ResioloitiaLlArei, 'Vcra, (11-ma I(mailing addre l'0 in oss:\ NI'-a)

Guinea: Bainltie NionilialdImiiiil' d0 ' s In:',Pe Bla1ic esAnges, (ionakrs, Guinca,i (mailing addross:B. P114'1()

Hungar': The World Bink, SulbaTrade (oute 4thi I'loor.-N''\' Ua1iIw t 44. Budapest 1)(015,I luingar

India: '('he World Bank., jl l.odi lstt. Ne\s Delhi 1(10)1(3, India (malzlin!g.alve>>: )P.Box -Ib New Delhi 110)0)))

Indonesia:'('he World B1imk,ILippo LireBuilding, Sinie 31)1,11 H. R. RaLsil]aSaidl, Las B -, Kiingan1,l-) Iakmita124i), Iil. Ido sia (nmailinig aIdress: PC). BRox3'4;1IKT)

Janmaica:The \\'nrl Bunk.I Ila n i tl Cnter.l 0) St. Il IiJ AseniLel, Suitst -So (KingstoIlith 5, )ai'naiL;a

2';2 THI W(:)RILDBPANIK ANNI 'A Ri 1)()V I I1''5 Kazakhltaii: The \'orldl Ba-nk,Ali unit\ Residnt NIision, Smimal-I, BIde No. Se, 3rdIIor. A\liiat% R,pil-, i I IKiakh,staln 4Mti1 1u)

K rgyz Repuilic: Tio\Wurlr Bank,i Tokitntila St (S Apit. 8, Bislhkek,Ks i/ Repilblw,

Nl;ia-edonia: \Vuild Bink iheld ()tfh Lre'Kom-iekI Na Banki, B. ZaaadaiNa Bnt.l\' 'Sprat, 1)I)) Skuic, furiM r'totalt Relpuhlic 4f NLIa,culi;

\lailagascar: Bauq11u1M('iodiale, I RstePaitrkie l:iiniili, An .ananariso1((1, Niadazg (malingl)addr,l-, H. 1' 4144)1

Mialawi: TPh \Vorld Bank, lDe\tlopmenitHose, Capitil tit\, Ilnu,' n\\ * Nla.\\ i (ma1ln Jtaldress VO1)Bus\ St hiT7

\1ali: BauIqLO\iundi11ak, lln11m1eLe St )GEHPIH. (Q)ti.ar-ter dLI FlL I\,. B1niak1,, S\la (malin,g address B P. I 84)

Nlabiritaiiia: Tl \'oildW BLaInk\'illa No S) , olt A QMaIIer:ILSouo,gim, Ntoiiik, tit, NiMjt-iunii Imailiii iddress B P).i)04)

Nlex\iO:BnRco M\lindiail. Pl/ja Nifin, lstirgeiOtteuSir I '- I, Ni\til 1 l1oc.is, 1a I-e V U (2 tL1,LadaI1lpInn ilt Il IIR,it\i D.l

\loldm,a: \VWOrldBianik I ciid G)iLe, P1i.taNLIaTil Arliiiiaii a.tiunale I 27Th(1 (ctIhisini. \olidui a

\lozaiiibiqtie: Thim World Bani, Ate. K-Ieneth Kaiiiia, 1224, 2-Andir, Nla,pto, Ml/aalhiLjil' lmtaili,e aldt1 s (0X1 Pustil 4053)

Nepal: 'Ihe \Vurid Bank. iil & `titi Hutm,], a-itD)-Iaim. Kitihmaiiti Ne1al I iVLiliit, jdlli,es: P0) Box i1 )

Niger: Bmiie Niondiale,iRue des D,allol, Ni.ain\, Nigel (m.aili addiclts: FiP1'. 124a12)

Nigeiia: The World Bink I< HlcirioiPlot Fogoei`L, 1'(iitI 11II14'_' l fiItti lo i Tatidor Street, \'i,ttirvi

Pakista:-THie\\oild jnk, 2it.5 ShAihli-e-ianliori.i Ruina S (C-S/i Islamah'id Pakistan (a.iling, ,ddressP0. Bo\ IWt)

1 PeLru:Tle World Bmak A\senidaP ,irdo \ Ahig,ai1it) Pilo 1Vi , ,111 1San11) I 1oa . Pei

Philippinles: I'llh W'oid Biank, C,entralBa,k -it thie Phili,pinex Mitilti-tiors-N Building, Rom 2t Rii\,ia Bleta1r\dI1-,N12l1a;, Philippinl,s

Poland: The World Baik, N\ITRAC(t I Hriiidiiw1 tl'oor.i-h 2 Statski Stre, t Nlt-IiS 'iVaIisa Poland

Romania:The World Hiank,BoleCt aI D,L)aii8,5, Seitorl,2. Bucha,rst, Roiaii;i

Russia: World Ba,k R gional (Ahi-, Sadoto-lKdri'ilkava No. \I5S, os 124242, Russian FdricOtiLin}

R%annda:The W0orldBk. H1\ii. 1 Ia R\ieltioononSORAS Building, Kigali,Ru Lada (maudil,ng Pd(iAss:P 1Bx (i'

APPI NDIX Ft l i IS O F F I C ES O F T Hi r WOO RL1) B A N K lcontiimil) APPENDIx 4 1giiiit 3(), 1 Q?'

Sjudi Arabia: 11w\owrld Hlink Rosi.dlnt Nhlision.I NiDP' biuIili.g, Ksig Paii St-rt, Pi\ didh,Saidi A bia 1 14132

(II:iliiill s adldrssL r O'. III I\ 5lh1

Senegal: Tlhe \VWorldk k Imian tlliblitS.DS. I H) 3 P'l . I' I)l 11le'i)I I Li . I\k'Ll S I'i_'ial (nIII ling irdiae'e,. 1. P.3' i71(I

SonLtliAfri a: 'III \oidM Link (>1."1 'n or (,ats'LI. F I'rt '.i', HIle PI,Rk I a .I HseH%1Pik 21 IIaI II:esuii',L SLIt IAII iILI (nsiiniig adri--e . Ro\Boz 412S3 (ii'aig Hall 202(4)

Sti Lanka: lhc \Vsirld Haik, el elzicip lt FilliaLu. (ioi'pi1i1ti1,ii s ium (PIFC( ') B iUiidiiagVtI ni Tl/o Cu Rold. Colimlb '3, Sri I lanlk;, Imjilin' a,dr- ss: P.O. koi I . i)

'Tanzania:Thi. \\¼i'-lnl nk, I( Bi I1Hii.ilitg(7tlI l:Iii,i. ), I ).lr-,i-Salaana 'I.un,.aia (m,ailin,g alddriss P(I )i',\ 2t1341

Togo: 1alMClIO\londliaie, 1(i b)oiLsI. d dII 13 .Iaul'i', In111niilIII' P1I ( (SOniI (tige) i.L I';,T,'I' (IIIli aIdgLILd,ditH. 1)1')I 3 I

Turkev: 'lix1 World Hank, \tattirk BHlsirmi,No. 21II, CaIIa-Cuir'l hljli lig Na.t(). i){tiS3 aL\ak1ijert' A\nkar-a,Itirke s

Uganda: IADl)H Buildin-g,\ile A\se lile,Kimpali I glul.la (mailinahill lddr I'-(1 Bo\ 44()-)

Ukraine: Tlii \\''i'ld Bank. 211.'Shmkm\,i i' iia St. 11 s Ni I i.hlkn Lilt St.), SiUite Tsrc and hI , Nics' 25-202hi4Il aliine

t zbulikistan: 4, Acadlmiciain Su-le111-ima1nsaLSt., T.uhkiut, I kckku

\V'11eziaela:BAn'i' O\lIu:Ldiai I:ldi ih'ieiul ii (rvistii TourIT' (lasle 1'1ti I15 (o)Ius1 1 1 5- CI-IDIAs i luan1 C iscLi dLili'aN I I da,I1 )S Pnlot, GrInd,,,1t (C jrj,1z;, \V'1w/Li, 1;,

\ ict Nani: 'l]i \\''rLd BnLik,33 lisii I'11L Sme t. I Ini. I \' i't N an

\\est Bankand Gizai: I'1w \yt,rld Bmliik,Ca./a ' it, (Gi;/i

Yemenn:Tih' \ViWrl nik1. I-i lj6tiiti 1 St.. SIaII Li RaaILimliI of Knx (ma,lilinlgaddre>ss:P0. Bu\ ISi 5')

Zaire: \Vui'lt Banik l.iaisi (IThfi , '/I l N\I'l', P. [)B'h\ 724S NiiilxLva,A, 'Vian

Zaillbia: Tlhe \\''r II Bank. R-d tj-o Hi'ui.is, 2" 1(1 jia101 AL'> ILisaika./aLiiam ,i

(mIIIiliLLg aldIeI fso:O. Box\341 3I 11

Zimbab\ie: 'I1w \ tv l d Bn.)i Fiusskui'ilI osel . BthH"oou'. 5]-51 1.ul iil A:\s'iv Ha)i'i'' 7:''uhhs' I tailii,g aIdies-: P1(. h1..\ )is((1)

-)t'4 TIli \VORi D B\NK AN\\N1\! Rlls(i,l' I0iS CO UNTRY EI.I I B I ILITY FOR BOR ROWING APPENDIX 5 FROM THE WORLD BANK

COUNTRII.S ELIGIBLE FOIR IBRI) IFUNDS ONLY

Iinconie category 1994GNP Iil(oti e category 1994GNP mid{ collintrx per (;cpital (t1 55 aidli (ounlitr per capita (uISS)

Per capita inicomyreoi'er $5,055 kCl sJ ' 2.1 loI Arn,ctilnal ,(L)1(I N,imilai 2,)1'3)

Slo.vlnjl .141 R1 is'iani ji i 1,i)11) S(\ elwll> 1,,211 ( ItI'l L I 0()

Antijti., in..I B.mt-1hi,i 1 .I TLiniva I ,I I)I

Per capita inconme$2,896-S5,055 Colombia-I'l I IO) 1 l. ItILIdVl 4 lOll I IKIIiLI.l'I\ 1 57) N1t>lo\z 4,1110 1)kl.iaiJl 1.57) t HrIl'h)aI a -li) 1.1S.ils Ijir 1,4()) Ga1l~Lon 7.55) I A.tbaL1 I\. Imit l i diiT o378 1 r.11151JI (:'ItIlt~~~~~~~ i,rmi( ~ ~ ~~~~~~~~~~~1 k.ll,1.iiL R,-pulisz ,I Il. G.111o,5( .1nlll II.a

(-Wst1Ropnuhh IL Nluuntiluo .,. '8 Per capita il,cme S726- 1 395

Soth ira .))0 )tA t laI I I St Kit; aodNoki, 11. I allu;inij' 1,35 I.)oI,lllino.lll I&MImI I' 32')' Per capita income $1, 396-$2,895 1I LI1,iLl1I 1 31 F tonijll SI) RillI 1,2I1_

\ C1C./Ll18'; 2,.7111 HotIluaia, 1,1(.() 1 c.Irl 2,/111) Ihir N .s (11110 I a1i)J Rotll> (',).,t,.l~~~~~~~~~~~~~~~~~~~~~~~~~~~~N2,551) SloolcimS \\'1uG..\<. m' 1,1I1.15())1()

Pol'ilnld 2 47T) PhiIppiw, Ii)

Tur's''' 2,458) 1 aIekoIr}.an' 1)5() Co'st.lFi. 2,35)) \i'11o,;,o' 47)l F1i l49)) Sorinamo ) I -It\i.LI-( . II J, met'ij,- Slosal.RelUNliC 2 23) S\oaal,iis.I Il 8 '1'l.1l.Tll ,211Sx lul .l-d Rcpulicln 11a1

COLUNTRIES ELIGBI.I FOR A BLEND OF IBRD AND IDA FL NI)S'

Income category 1994 N\P 1lo11ILa Categorl 1994 GNP and CouLntr per capita (USS)1' adlldCountr; per (apita1(luS$)

Per capita income S2, 96-55,055 Per capita incomoe 5725 or less

Per capyitaincome 1, 396-52,895 K\ i \ / Rrtdpto I ol

Domino:iwt1 Il .1 (Ir) oA/, 53()) St \'V)ovcot.11n til e twrltl)11 1oa. Zlimll.ls, 4'i)) P.iit.11l 4-I) Per capita in-come$726-SI,395 In111 31) \Ih,odo.Ij,F'Ri 'I)) "4)81;c 2FR)

(1 l).)1'IF.\ r1 1

AIB'I8.'d1)\ FIsv- ThI COUNTRY ELIGIBILITY' FOR BORROWING APPENDIX 5 FROm1 THE WORLD BANK (ritinI) (1 *,11S11 JQ I 995)

COUtNTRIIESELIGIBLE FOR IDA FUNDS ONLY'

Incomiiecategory 1994GNP Ilicomiie(ategor~ 1994 GNP and coiiitrv per capita (I Is$)s ainI coulnltlry per capita (UISS)

Per capita income S1,396-$2,89.5 Nic Lini 33) n{:lil1l.;j. J I 1j1io PnpIc, lc nnI aodL1.tiLR-publi, 37 In4 71) Per capita inconte 726-$1,395 RLITkinia[sLim "iWO \nI1aLLLtu 15()5) `iltln, Rp1thllic-Of 27t) is SITIIOL,'l ')I () BLIh -5i73 C 1(, Voyl d IMllt'1) S;;L:IOlll jl'.611L t'i ill, ljl 25~~ INIddtik'S 'M)( GUM,i J.-Fi>Sl., 24) Mi% ixi) 7-) ti|.all l 23 Al il n.j. N1I I,ii):il. g;Sr: 73i 1DjiiiiLti .j. NSig, 73 Kirilna';ti n.j l tEii 771) olivllnn kIldn n.j N( [iif 711)

Per capita income 725 or less CIlhd I91)

( jIvIrII rooll 6() \ il Nanll I'll) Cii!twilg )-4) ) BoCsnia i 15))

S,-i IL.;,inkL 0)40 -It;I ,,1,11 tSri jilkS i-I)) Si-risL i 1-nn- 14)

GLwI%LtIII;I 59() M:tvlie111iql s'ni C(MOM!Hnn&/iss 5))51() NI.ilsi'.iAil:lAkhin.pist]| I13)) -Ii

UA Ctt(1 N\,i,c I1 r.t;lR LI (1 ; (umii ejl r)) ( jLiltbndiL NI;T-it,iTiJ 4S() I itT I1.I l1 tL htIiiiMl C 11in1.i 43)) Kcn%i 1-. Ghln;i;w 43)) 1[.c dIn 1. . 1Illin4 3.( I .iJhT-iL 1 .j.

(Ccntil Afl-i\L/n RL-ILi1li1 3Nk) Imaimiii 11fL. AI blLi; I Ii L ' ) R%\JILLI; II.LI. G;.mllij, I 14) (r) Scqnllliil 11 ;1 Taijikkitan 35() SiLIJZeI n l.

Z.,l llIIi LI I.,,l I /LIIILI 11 ;,LI NIOL l.4))aktLI Zjii.- n. .

i\Vt.Wo nr ABmikA it iIifth 7\ 1nsei is... l 1 ) 9-4;rer ipit Ii ( hI' .,,n't' iin 10)4 US1 Iolllri. It Lstni tta /i1 tf's"eniOlti ni i pn-chlXinwiii ils. t- (0w/liltr' ic I;)-(,' let,, e>'l ,1, 1.I th" baSiis 0; (11)leSe11 l 4Iiwl-hve (111xl(b)l ti ole'(| -'welitirm fi-lziiiwe. Ilictpo arv9limll,/c-Ztfuro 1w1i).1 e-/io ilit'lit FY94 isiS11 1'l 4 (.\14 't ca(im/'i)t f I86litii i. \tI;At iiii'tflik ogv (I5tS,' 1perioi I /1)11 4)4j /1;,r ewI f).) I r iSem1acscxiliitiitie

i/io tI t'St ot't /e'lt i111t111e'. fiti '.i cptipt ! II- i1Iii 11H'tu Ill( (t 11 .I ci tell(is 4igih'ifitv te'ilitp tirill ' tee ( Ifuitric' that ane , /ini 'e tlet' O/'t' (I -

twilJ11II( lfho ,Ill I1EeI1/1 !111Heltcm 4 Illt l ilt '11twIz/Oaill(llt 11 l']'ll/t I1t' 11I CI IiVitil)-i l'th 1 11:1;UIR 1ellill- 11 cx cl /ifion I1t i" II.>{ 1ghco niti It'

Im1 S mal i Siis l1a o(llmllit's (Xc'v tI)filwtt *1).

el. f)rmi tY041i /-j l Ift 6 i!(.)) 'AiX4.H).t)puni In )hsC'.s 1 \' fir if fit 0Ip ';itioin / tttf isr-)t. eligi'iljt' (S8ntr hi 514(1 hils 1tven111i lit- Sfe-( if inIn/ril iS/nlul ict loitmws hichf i d r-iti'ivise t i/l 't'twlithle' 0/ i)w fi( t i t G(11inik n-o, It titsst'c Iecaiut1set1' hi(k1. ( 1 itww,llthiiwEt'9 1O cieI 1 wftlzr)(1-it8<, 1l ).1 filildling, is>( ml/iil/'1crvd lost' n ,ed(Sitfor the' fiiiccm. , fpsitrsnci iJ i(liSi,tm,,,ti,t Ivo(gr'a1in 2l0'6igt1if Ttil l\ViRittll'il (I\tt'i sAiIh,Ru'sn.

796 'esTii \\'iR)R n B \,\1 A;\, Al1 R:loIss 1)9:5 WORLD BANK BUtDGET BY' ExPFNSE CATEGORY APPENDIX 6 AND ADNIINISTRATIVE PROGRAMi, FIsCAL YEARS 1 993-96 (iilllnliiis of US td rto>ll)

Attti.ll I99

T'rm I11(3 IL)t(4 1t5 programil

EspoUsteCaltepo Staft siits U]? s51.I8>S4 Si?.' ( ,,tosnt ait 1()4s 113 111.9) Ili?' ContratulC al -\sktI /'-lr-C' t atioii 42 9 (, 3 92.1 NT>

r>crI-ationawltras, til 132?ii l]I 1-"2l75 121.9I' (3vrha.29I1lt (): I 23.8S ' ._2 213.7

Direct Lrniti ibtions to S`Ipccial SI - 1()34 1 1 5).

r.wIaI,,Prograni'

PRoL-I IrI ]-OCLIIoI I I e 1t3 P Li ill flu semen ml ("5.31 (1(' '31 (lIII?) (999] Alloication for itlin' benefit iiti\itis 5''

1 ;al 1,2'5.9, 1,358.4 1.4(9"I 1.38S2'

.'f'iiinIIIotisni'iPrgitoii

Rcgional 582 I 2.5 41 I 35 '

HinancTial 'I2 AI iS - 1(17.4 1 FDs\t-lopitent ll: aidI s1 \ 3,1I 22 5 3 221. Adwimii tr,tisec sc lupport 191 1 1 ) (II.J3 1 124.1) (.eiporaItc nsa.,ag,,lnlt, and le'gafl rstIc's 4(l ) Is I 55 9 52.8 Tot.il I 131 1,141. I

0v\c aI.L'd/nIci,ht. I 03 8 '33 94 143I3 133.4 P row do it contn' 'ei,i _ 3 Ryimbrirsyn ollts (95 31 1(1731 (111 2) (tILl Net adminitratite pi ogras 1 (1()1 - 121811 1,21(1 1,18SI

Special piiira sb s8 S 1(17 I I" I 113 2 C, Iads 4 1 4; -( 54 01 Thi5 Operratioin ., i'it I I S I 7 I 7

Allo1 atio R-nr eITdinILi g 1 n efitfi tI i t s 'I

Totail b`Ldget 1 ,35>.9 1 38 4 I,4) 11 I 3s2 2

-\' Notaip t (ll(. N lirrt DviodIi I,Le /rttiii'i[ a , tiitotai i'ricii2 h ' ll r' Sl /idi 'g. 1 Li. FY01/'9I5s 111stilitiomi l RF9z flpiit/e' Fii,,i ,i,iiiinF ' 'i i L II'Abl,(-c,ti,s,, f,,,,, pzrtSiIttlt's C-outinge l,,( 11(11'<1'4P9l II/If ll/ respective, f.,oYwn\Fgriist)F)'L1-Q5)

c- proul,2S,,,,,l aIll.ocatio.Rl .,t,i t,, bol.,,, '11?rovol ol.,tl,. -.,lin,,,,,t..t,, (-

(l. FYQ:)t\P'ucll (s(ITO II 06 bvd),ttinc(l,,fd '1(,z,,)tr.l^d "itIli, ''1,Ifj''1'V''S",

t' hicl/e'' FAG) (Cotpelritivt' Friiprati f. F/Y3-S )4 e'p/iesLsiiiludc/i i/fit(- tc,iip,fii,iAcostiis of Biii/k iiitd hi ('if,'lLiiiitili4t'i Ii'tOlII'. 5Y'5CAOI'siitC liii? tile -'lii is't i'S,,il// tht5secLsts, 1/ni/i iioi,i'i,the' l'tt,i i/iute'i t/'to t" iiiits. g ,i,i,ii5i'h .2 iii//ueeii ,, i1 r Jut it'att it giiiii,L, .,,, ti't iiiititii'il I/l' t > r'Iii,,tii,,g chaa/ieii'.s (Fiiiiii, idl ILL u ntiiigi Stmi,

EALCIIIei' S2 ? oi//llin fI' Sitr'"iii hi"I

APPi,\l'f\ SIX '2)7 IBRD AND IDA PAYMENTS To SU_RPPLYING APPENDIX 7 ACTIVE BORROWING COl'NTRIES FOR FOREIGN AND LOCAL PROC(-'REMENT IN FiSCAL1 1995 (tfl/!I/!,!!.t1 p US ,l'llttn)i

'Ii ,- ittagr Borro, riig Loii l Fortigin lotail of total minlric,t 1III imiiit pro urtilntlit .110lMio t di.bih'.,, 'illnit

Alg ,-,;t nI t 52 1Itt A,ut ottin.O 24 7 283a ) 1 Banrjar.slt il I 14 124 ii I)'Iiaui\ 4$ I 4 ) ()2- BraA/il 7rl 17(1 1i 5.14 Brrkina Fais a5 t i5 ()Zr11 Ch,i_ S2a 12 '4 () 5.3 Chilni 1j13'' 212 1,342 -75S Colotnihia 31 IS 3I3 I 91 (CotcdI,iilc *1 H-i3 4 ( a prit ltI 1' 5 1.2(! Ifetao 0$ l 22-.... 1 2'I 008)(i H> IL t i31 5I 12 GIha,na S 7) 4" Guvinea 2(! 21 40 (!.23 Httrwarrg- 12$ 24 152 (!80t I i a 1 4(12 121 1,524 S4t)

Mcmo) 03- I ')(.4.. 4.51 l ri Li 2SI 4 - TIt1 tPak tn 2 1.41 R' aI 4i 411 Sl (141 rea.-S RriL thlic o 1(!5 2410 -71 2.(00 NIal;a.,gara 3;l2 t 32 ((.1S N lalavsia 1 2 23 I54 oST Neltxr A137 27 ( 5- 44 Ka/aki ta t24 8 La) NTIcr 152 2I4 I .A Nturrtal 159 AS 2(1- 11 Tlati tiz (2 5 348 I -4 Pet'-l * t 43 1]24

PIIltiSit LI 1()) 4 1$1 I').5

lia ,Lo\ itt ia a'I 30 (I.22 ptti 24 1 245 1.38

'i1'hiogpnes negal 111$20 10)4 II?1030 II 211

Soilth) AtL Ca - 85 185 1.115 Sr-i I .IItkni i I 0t S

T M,airsrta 43 4 4- II 21. ILIL,iaLIJ a4 41.44 I;thei' 4;l1("i 4 1 I I (i3 Trir-kr: Or]) ir 2-5 155 I;krrktraenietarr 35a5 a .1( I g.araj; 5() t 5)) 0.2X I Ij ri2t i! 1 4 (I.2S TitriAgIItIIt4 a A1It 22 23 44 ('25

\ id Nanm i- 5 •2 11*58 (tilte-s 403i 217 1. 1 a Sa

lIrtal Sals4 2,122 1)1705 lil()(')

Zero',r jr.' rlrrrrI Sti ' oPlit/rul

l\' )tlI: L)tsl'trr•r'trrwtt tfr rrtIt,- ! lt'trttrtr ru 11('1tIn. tlt u11'11r'/.rl'ttarrtt'ttt.tI .111'r'.\rl/trItr( / Lrtrrili, ,Iri,t,.tt ,Irk!tttr, l l'rtrtttt/' ''.IIfttttt11(lttt' ,t. /{,t.,,,r ott!,,t ,ti§rrtl /"09-95 l' trrilitw p.t ntt,-,,,,oi o/ Jrttr,' Srf J'9''

t, KR,t, -' nt(Z,t'l/tz t,,of n/I I!'!'! sIt in t /trr'tt'tlNRlrrrf>l It utt I 91-Ia(rtA /tt/orp,(tiialrttt,rorer'tta Jr! rits r'/trr,,1, tr(, ,,rt/ii/1, fltrh/rlt

208S Ti is NA 1).lit[ 'J\N1i Ar\NNt is) K lFI~ 18 199 ITBRD AND IDA PAYMENTS TO StPl'PL\ INC, APPENDIX 8 COtINTFRIES FOR FOREIGN PROGCIREMIENT

(ei~~~~~~~~~~wnn9.11l,1liIII,/,i't< iI.. .hInr 11)\

t" JuLIII ), I59 I11RDh,i II 19)15 to llint' a31,I 995 IDA hF,l 11995 S up lti; u-Ig(outiItn A.\io,itui (mount\¼. Au.u1uiill , \'(Ioinint

Arc-ntreinal >2l ((. - 42 (Il ' ('13 ().2 1(1 ((.32 Andra-l .. 1,,a o w1353 13 3 ' 1.- 212 ( li: Anstmatl-l -,49I I 43 212 3m') 221 ()Fs 8 ('24

Aacrhajan, (S - 4 I- 12.'I j e 2

Banigladelsh I- 2 '49> ('12 7 (.2 BelAutm 21' - '9 (1 44 I I t LeICnnII 1 5(I1 I 4 li4 I )Sll 2.5- 45 1 4 bLi1k-a]i i. I I I ('> Ii II (I t3,-.il 1,-- I -4 'R 1 9, ao- >. 29. ((.8 I Buik.aria 2s IS15 (25 11*I (I ('a.nada 2.a2- 2 2s 123 292) 182 79, 4S 1 49

Clain; 1 2(1( 1294 -9> I12'' 11(1 '- 2 _ o 1a4, 4 2(1 Ct11291j)ll. 2'-2 122 15 (125 Is 4 n) 12 (B.rWa a-a t (I 1 2(Z I)' 9 ° 2" (769t'(1 I) mite I 2 (1 ('N 21'- I S () 5 32 I . (.k1,lo 41 ' 1- (I22 '( 4I8 CUtah RljanhlI 4' IS15 I25 II 4 L enm.nteI% o 9)11 I l5 5S >K 2sl '74 2(L

F>nal.s>l 13a2 ('13 I ') I ( 3 5 ' an (Ill FLjn,am,- .al ( Thin-a . t ' 14 sK (I 29 J,i1l',L 4> ((43 a9 ((92 129 (3 5 U Fran>'(t -. 'SS - 13 5195 >s- 3,73 1(14I 421( 13 .14 F n.1-.s I1,5('(' 11 31 99 1I1 3,34 (KU'1 155 4.59 nal - 1(1 t ' I14 ' I.24 sin,11.' 4'' 4(.1' 5 (' . (01 I (I 5 ((.111 Frj.c.l ;ll. ') 2' Is 9 (( j (1.4 a 21 (1I'I

PInIlgari 2> 9) '* 21 '(.39 25 ( (>7 2 (1111,] Illxiii 35'' ('3 is 'Em 735>- I s- )'} 2-t ln.Ii1,'Imes I 14' I I S (((" 11(4 ( -o 33 I (:3 jGr. Ilml .l R,qnhli 144 o(14 t 1 4 (0ml 1I( 1(31

Iraq> 45') 1( 45 ' 39 (11( -) inl1.,and 138 '(.14 13 ('23 (1"3 fl( '(.31 a,',', 244 ).24 I14 23 ''9 1125 lo ((3

'al! 2,X 5.siR 7 51 1 11(4 1(3M1 428 1((4 3.24 I1a1,ll'a 13,58 13,14 4s5 s2' 4921 124 131 4 Irmni i 4" ' t ' 114 (I34 3 ((II jKaeakh7an.,, 1 - ' IT. ( 21- ' - (' 22 Ili, a 2 I98 ' - 2'i) ( 4(1 I 2I4 (inai-., Psejaiil'ln.1 1 51'- I 4S I7. 2.'1l '''''( I s3 9>5 2 '' RIninlil 25 ((2 5 5 ( ((S 24)) (11< , I 12

Il.,th..nal. I s K (12'' 2 ' I \i ll;sia 344 ((.a24 (1j 4 211 I)( 4 1)45 NlE\,, ~ ~ ~ ~ ~ ~ g-S u SI 24 1141 '' ,'25 a II NetheaiL,-l.,lsd I ''941 I 92 II'' 2 (2 1 ('-4 -- (1 15s 4I41 NAS ;ZealandZ 1o4n (III' 13a 1(22z ''Iu ().21 1(1 a NU-r-i. 38'' (I'S t - a44 ((''1 4I 119 Nnrna,l 32- ('3 I> (314 ((3alq 5 14 (I4.) K'A.htI 119 ((I 1, 2 (( 44 4 (11 ananvil 31(1 II IT 1(1 (4(h 41l Ia - ( )I K'hi192in..- -I 1(4(7 I 1 .I'M (12 3 1I)( PK lndi 21)ll 21 419 (I8S O(;I f''ntnlg. - (719( 2 (I((S 243 cc(r1,4 31 's R'naaina., 28sa (>.28 31 1'52 (4' I4 IS s ((.1') R,isi,a 45' (3 2n 349 44 '(.1 1 n- I (I SN dtlAah.i 5- (II 18 1(31 221 '(.54 5 () 114

Al \l 811' 8 1>1,7- 2(444 IBRD AND IDA PAYNIENTFS TVo SUPPLYING APPENDIX 8 COUNTRIES FOR FOREIGN PROCtJREMNEN T &(cnlfillniminei

IBRI) iunmintativ IDA (uwi,, amItio to Jilc 3(1, 1195 ((3931)h al (95 to 'tlin 30, 1199 ID.A\h, al I995

Suilt l[,Ig( ' onmule rII 'I% ,\ounAnlomoit , \ Amount niou .

Senetgal 23 tt 8(1l: ().1 I1(1 ()32 Singa-por '(861 (i7 ., 1.31 (uiis I 5 45 1.42 SouthaAiric;; 41111 (13'; 14 (.25 S36 1'? I217 i 5 Sinlm 1,14$ I 12 .124 >() (IS 32 ((1)9) Srti Lak 221 7 S% edel 1 .5S2 1.55 1;2 1.1(7 1 2$ 11$S S\%ituerlai II 4.24(1 4.15 1119 3 2 -, ( 1 I.((91.9 Th;iilmld 144 ((.14 ' 3 21I') ((iA

Togo 71 -- ' 2 1) 4 ((.13 Turkey 2-l I (0.2(6 7 ($SS li 1 24 ((! 5 I krine 42 3 '(.22 (II I 36 1.12 I nited A541ArabEirats 11-3 i(1 (U.I(i '44 1 I i l('35 Lllited ilil"Jxorllt 3 .1 z 1 .\ ;j5~>1.) 1zS 2( nited Kingdom - •97 - I:~~~~~0 4 14 I1313 ¾2( , 2s .3 Init dI State, 21, 123 It' (9 742 12.59 3.S()S ) 7 (6.16 I IttfVl\. 11(1 ().11I 23 ((392X t Vene,'I.el a 473 ((.46 S ()1.- I Sii (.4A 2() ((.62 ,cieme. Republic ot t - ' (I (1 m4 - Ymng".loIa. (6 $56I-V ((NI 2 ' 1 2' 3 (1(15 Zambhial 311 t7 ~ Ii ) ('') 4 ( 11 Ziblose<;zlN 34 ' t3 (1 S (1.24 )iMber 2.51() 24 '17 .34 1 11 2jiu 13s 4.32

T,z>! I2 lIH I 0'!9 5. il)I ,sIS] 11(1( 3,19- i(!H)

- Zer;, rt l,,,,, So6 i nnilliJIu. /'9.5sf/wull (0so i('ert'llt

No It: [i.s/'u;someit;1s (u;1/1t Ij.l/5L/IfmlI;;I;(i ;let' ,lil'o IIr( .iisi't1;nlllu'll'llt.v Ilt; ';\cllnlcn'

Di-t'lil,malTl llllt EliXhl tolIWlls(l b(I'l'se otrom{ l i' blig. ui Unit.d IKing;hhu;;in; f;;,/(Jung kUlg. h. FiIures p;Ita ,I In ,Iienlf ltrIIIt,;,( in repr'•';I(1reef> ( I, iplhtll;t Id ;mu;/e;I H; /I/iec Jo;-i n.'hidp I;l;i,'Il (i zer).

'-21 Tl. \VW RI. i \NlK ANNl\ i.RR.;wv i Il'9 IBRD AND IDA PAYM FNTS T(IO APPENDIX 9 SUPPLYING COITNTIKRIES FOR FoREIGN PROCUlIRENIENT, BY,' DESCRIPTION OF GoODs, FISCAL 1995 (uunoilts III jlidl/ 4 US (L)isLilK)

EtLtliI)hIut (<-iil %,o,rk ( "ililtaln,t 11othei good, To'ial dihbiurmeni[iti Allioeulilit -t lo\rnullt . \llotillt . .\AmuiAmiount

ArLgen-tm *I (145 1) I 33 53 115 Atrl ia 211 3 115 2 ('25 S I ''4 I 72) 2( Austlri 211 205 3! (13 5 [ t ([ [16 21') 241 ChaLina ,The t .ii' 7 01) 13 ii 1} Banylaijejir I (4.1$ 2 6.4 4t 14i4 9 1 BotlrtLi 21) ((.3* - - 2241 0 1 BelquimRcpn lih 1.2$ 5 1)53 1 I1 175 111 122 bDi/il Ir). 1.51 6 6.o2 5 ('I) 3 1)2 Ki6 I BIIat 1i().21u - 1S 2 Finlanada (i 1 . 0.S2 2 [15" 5 13 1-1 I0sS (FIIna 4.22 1.8 2 () " 2 3 2 12 233 Gclobia] 4 (4.1() 4 (1.42 4 () 4V - 2 51 IS ' 2

Cu>ta RiH Li ').13 - 0 (Cu t I () (5tedt yams K-1- 1).24 IS 1.5- 1 (i 1 4 1 42 *- (14 (N mrus'1 - 1• (1(15 1 ()(12 K 278 IS 1)2 (7aeLh Re-puvbliL Ir '122 - tI ISi ()(IS Iend aro 2 14 31 3.33 1 I i I ()32 77 (1.85 LI .4 11( I t 1.12 1 , I 1 5 1.5I ((94). kr 91 1 24 2 ) 2S (125 t 12 11.13 Finlln It '[43 1 11.14 10 1.2- t (' I 42 6).40 krausile 43 11151 '") IuI.53 Si? 1() 6n 2.22.. [4(6 III __ GeRmanlll ''• "42'' 1(11 Iii 72 3S• 4.82 1 6i R22 '.6i4

( ArL ' c 2e'i [[212 t _2(1 (). 22 kinell 20' 2' 4tt 1 4 4l (93 HKugar-h 22 31 1 14 - - 24 1.21 Kcn\j 8 12()I I I .' I 8 2.S7 121 1.34 IK lAoRL'Ia *-1 [11 - . 7 1.()- -1 '1.41 Ii-Ltiid - ul.1 t I'' 2 ()I t 23 '1).2

Klmrl 14 0 ' I 13 t 1- 412- 44 Italyo 3)4 K57 34 *4(62 - Sii5 S 2.13 -55 a Japanll ml' S 1I4 144 12 I-4' 2n) S'15 6il(6 1

Nex\ ZeIalaI 1K (1.25 r ' 6 C t 23 ('26 NIyeUIa 4K 11.1 t t t 4s ('5; NArxxax 2- (3 - t12 * K I [2 1 2 ('35 PlkIstan -J ().() 1 I ()(' I (' 2 PanamaI1. 'I (1.13 2 (1.17- I II22 12 ) 13 P" raysiax 1 2 1()2 t I (' 21 4 I'ulflm(minemzY . 3 ('4 4 Poland 4 I).1•4 3 11.27 t 48 ) 5 I'Pr1Ug.il 2I '2 IS S ().S( I I ' t 3 (1)4 Romnaiaii4 (4 2 1.17 t tr ' 3 (14 Rumsn 241 4 t t 241 2.55

S JAdI lia w 92 * t t ).14 23 6.2 SnLI.Il 4 i)), 4 1)45 t 2 I53I 1 () '. SInIg.I-Tue I I I I5 1 )()1 t '1.0 5 1.54 123 1.35 Snotl, AfriL- 1 -1 2 4( t '' I .(3 1).,)- 1 2.1(4 Sp.~in 17 I I IS I 0I 4 ').4S t 1).() 1W4 1 1-

~~St uIs1i1 i I t ' I 1.37 S 1(( Sxxedlen SI I IS 1 I 0II °-1 7[2 ().S '(1) )"I)~~

~~Ai l l \i'i\ NINI 27I IBRD AND IDA PAYMENTS T O APPENDIX 19 SUPPLYING COUNTRIES FOR FOREIGN PROCUREM1\ENT,~~

~~BY DESCRIPTION OF G o o L S, F I S C A L 1 9 9 fenntinitne,)f5~~

~~I.qtiipeinrit Ci' i Ivktits ( ltaIIjII tst Al other goo.ds Total dislirsemvnts~~

~~110 LI It (IIirit ' r i, i,tIIIn 4 A,nuLI,t Ii.t Amount lti'~~

~~Ssritzr-klaIcl 24 '.I 2 1.11 1 243 4 I.42 2401 2. 4 Tanllana t t C) 4 Thadani./lLl 22 0). *1 t I ( I It ( 1 23 0.!26~~

~~1,¼)n I t- t 2 (5 4 Turke\ 7 I .(1- _ t 10 76 (1.83~~

~~lrkuimli-IstnIt (4u t 35 ([38 1 Lkra4nz 48 (1,7i -- - I .38i 4 (0.54~~

~~t nilitedl Arab mirates 18 ((.20 - - 3 ?5 21 1).i 2~~

~~Ilite(d \iidii'll 1. 72 2 1 25 5182 5(12 j680 7. 4S t OiteldStates 4Sa ).5 2 (25 10(0 2(16.i) 20 3)I 10 ' Iugtiay 21 I t I (!,49) 2' (!.25~~

~~Venczuela ' (' 3 - I [( 14 2 7(2 S ()~~

~~Yn,gr'slarviai 4tf 1rIer) t ' 5 (!.4S~~

~~ZambiailBi 2 5 t - 1 ().47 4 0 ther 215 .'t)4 14 1 .4I S 7 401 17..(1 4 '.SI~~

~~Zer/1 t 'W t((,IIi 805(J miilike'''' le!ssI/e,m () (s'rr,9etlI~~

N'.' TI LlisD iurlrlCm ts fur /edIt lriet (ill 0ilin n(UtI,li'1//LI ,/id'n Si IlU '(tS (PS'texcI(UIe. D'tmil(1s tle (lot (dlbtI to}t1It-li (limste(1 rnounigi. 1 tl Ullik'u I l1111( ni/lu'll, e hmim Khi 1. FiA,etel p lltir p vln I')u 5l'li1(lneti't0orS in re'la (tie oitnf((1 tyr liw'inl tI' upppplit'I(( f ) 'iifi'gl u (f/rmel).

~~24I 2 T i: \V. nl RB N \NkA' Al RI )'('1 l 1 M5 IBRD AND IDA FOREIGN DISBU1RSENIENTS APPENDIX 1 0 By DESC'RIPTION OF GoODS, FOR INVE STMENT LENDING, FISCAL 1993-95~~

~~1993 M94 1q()95 Itt-it OGCD Non-GECD Total ELCI) Non-OLCD Total OELD Non-OGECID Total~~

~~ildl/lwoo U S F),0I//ia~~

~~CiOilvor?> 3.77 (1 513 I t)t 50 7Q9 Yti) '7 C(1x1alxaats 1? 105 .1. .1 124 79 1:26 14)) 'bo Good,s 2,851 5501 3.408 X Z<) 5 -33,112 2,75- 424 3I1• All other 7- h 131S It)) tS 125 S2 - 155~~

~~Total 3,87 9)C 47); 3 512 ttIlI 4,5()2 4,17 .7 :r, 4)4)~~

~~Ciail torksirk 34 11 4(1 1 24 1 Coasstltzltlts 85 IS 15 83 I I 82 18I G,oCIs 84 lIto I 81 I'I Ii S7 13n I All othti 52 48 3 4S 52 3 53 4 a~~

~~It.t.l 8 1 I( I)) S2 Il() 83 IV~~

~~I)I: L)Dsbuttrstumentt,f ar i/l') lt tet hat n lldtl ltlt 11tIll ilzti/Itit t itO 'i, /ttdOc/.IfltIs/'teittytits ft , i t!ll t tS1 11I/ itltfttlletllt 1 I 51,~~

se1 FWriitill 'lŽltS)'tIylitt tttith rtiit( Slit iii I it t piit ptllTt OCil, ill iftlittiW ut it/I itll i/ ,l I1¾!hi tOrf/t , ol lig 1/5I'll rlt/ t-MiIpOlIet Il disbilil" atttg"aboltijlzjlmtl ts ' aIIt{1ll:I)I(stillenit coilf)II'o"Ilt'l?t/ 0Ie1", "u-104Iq't M\te-uc" bec'mi anI1 ( )FCD n 111 111 t l 11 lvI

It 91/4 Cfti-feltoLTi() 1r /-'llil'i-ktilt l)/eA i/l t111,t1tititutial OECD ctifllt/l 1 ttrafll ttrblos cott T/trtrtllis t il gli u f a tIl.1 #th1(;ef peretages s,ar i oni onIt, tile.t, dlll(10111~s,ho1< llild ullIluth " tw1d ll'z ilstIl:l wXil*l"Ilss"01011i Tlhte"', -'c-tm'pll, 81,l'houlTb" 1h1r /bri'(ik/itiu t aItittt iit 0E anCDfi'Iat- orcSO EC:D iiitl'Stu' / I tilth.11u i t Hisalt 1/li'r /it-it still 7tuii/ iit)cirs i uit/Lptreu/ it-t1i/ tito! /tls troitlltsllts.

~~AlTI NI t)\ TIjN 21 APPENDI X I~~

~~LOW- AND NIDDLE-INCOME ECONOMIFES: GROWTIH OF GDP AND GDP PER CAPITA, IA3-914 /I(itieteetttttttrlitl /'e'(lteesttt ii'tt4e(It/ee utI/(S*teltl/SICeittel}~~

~~GL)F 94 CGR per, -ipitt ltcgii.e.. it utiln,lFtgroep) I I3.5)1 )"2-(94 1W)2 [I5)- 11)1)4 I 983I1 1)25-()4 1992 1993 1i)94~~

~~jLm\\- anld iliiLtll-iIiWliii ettIme(llisi 3> 3 9 3.6 4.3 4 1 1.3 2.1 .~~

~~S3!It .S i IIe l I g/ ( AI/ if 8e/a-Siuhzq-.ar xIYit 1 2.1 I S 1.3 ().2 1.2 -tit) -2 1 -1.6 -2 -I~~

~~L;tst Asij Lnd Paihoi 7._ 6.3 6.6i 5.4 6t 6.3 7Y 75 6 S Settith Asi' 5 .3 4.4 5.1 3 5 4 73.1 2.3 2.6 1 3 2.~~

~~Nliddlk- }st mtNlLNenl AtAi,;l; I1_ (7.6 3,i 1.6 3.3 1.3 -2(I 1,(i -I I -. 1 I'Ltete ;'atndCkt. mz ti I cit' I 17 4) 6 -11I I 64 -() 2 I -1l.1 -13 .I~~

~~1.cttie ;m\enAmliya teedilh. (C il+lo;t I.' 3 ( 2 3jS 4.2 -2. 2 1 ( ) 1 4~~

~~Mcm"wl itcm,?~~

~~,ie -t)d ittlmddl&-ehtA(ti( L&olhllw,ittC, 3 S 4.5 4. 4 4 i 1 2.( 2.7 \xtludin", hi-t11pc5tLm,, ( :,,ntt-s AAi; ti-\ji l 1ttt eC l andit i A~~

It. LAhkie(/e Se tetitInih.e 1,. 4)1i) l ite))SNe,lul). (Cetele/tee/h. (?/liltl, Fiji (G,imII, ielee.cirl, /xieie1iti, Re/ l'eeetHtl,ittee J'tep/t' S DeetteeeeeeewPse'pes/';ticRcImlai Maecaoe 1 N1t eil .\Jeietmit/fi, .\.,Ittelet: Net Ci/te{Jlliet( itl 1 ed it 4iettte;/S e11t1l1tilt rr"dorv. PotNett Gteltt,t d/tn F/ilirpipte, SNt/tlet Ie/e/ lietit Iittt. I 1 t(tt eIt NtIIi1. iceI lotct-tt Scuueeee. I. itltttitt kletl1t3 llH 1 Ii.lS il/ttttteiIII li/l, .i11lil,x, N pu/.,d,Pikim etm,ee1 Si Llilkce). 1..A 13e'eie[,l,/, in, rJe'pt. i/etiliti ltbd tl/')iieel 1lIl. tie,te/,letelettt 1e,11'etltt,eLi/eo, (inette,0kj,e,eee, S,m,tlir.-llt?iehl, Sx.eie)te ,i1/' Rep lgl Itth tmet, ,eldIuelel'l. ICeRepblic i t lteicettJtet r Settlti 1Jijeet 1l i/ N eeeJi Pe i leuet. ;li/etriee,./-11l- Ell,ge-i .Cze ee .etiee(t/enu4ie 1/692; 11i (_T-ieh Re u4lich ,el !/itt Slewtstf'iGe/rutlelie tiietu fle'J. Giheilf,al Gttc,lI ieeu;e-tsl e elAJ t ,.\.lIh,t Peel,ttl, Tiet tle 1.hRe,,,,,Rluid . tttite Jlrtlev . L( .pt C.itl t Seeltfr, ei 1 Iti ItttIk.

~~I,ONG-TERNI FINANCIAI FLOWS TO DEVELOPING COUNTRIES, 1987-94 (ii/ieIt. ee/"I 5 llieij)~~

~~[tell] II087 1988 1)8I) 1 1))) 1)5)1 I1'1)2 11()13 19((4' I fl-tI tle tie ItcLitte Itiet -fse.SieUeyeil-eIN t.S. 7.4 S45 1(M3I 124.7 153.it 213.1 2 ..~~

~~(1)fh i;cl tie\ . I eflelleeei~~

;liointeNte 434 4 2.442.-I 42 6 e l.S (i 5I 531t 54.44. OfiLd e it 1 184 12 2'e.22.7 31t 32.61 371 I Nutt oth.i. tie emi 2t1i4 24. 1 2.4 mel2 2 2et 2().4 23.8 23.6 E ile t1 1.]I I 5]2.I. t I 1 4(1 14. 1 2 4 2 L t NlitiIteel 11 14 111 I 15 . 15 .2 15 14.5 NcI ri%iett lee '1.S 12.7 12. S I1.1 18.6 41.5 45 881 2 C eeui'ryet1.r;! ted.>l It)1 2.' ! ' .3.3.4 2. ' l 1 e 4 let.( ; Romiids it 7.3 I1t11 4.(1 12.8 2. 2 ia. (.hIles- 5.S 2. Wi:( Is. 2 1 15'.7 58 net1

~~Flai el elite.-niw[ie\ecitlceit 14(e 21.2 25. 21.I7 317 4 .1 1)16~~

~~eixe'-teiie ltl' i1.8 I. 3.>5 3.8 ti 1-4.2 46.6 46 _t, I.teeg-t' -l.ii eetgg ele-;lte4 Aetc ie -1.6I-ti I.1 72 26.2 45.S 4 4 132.2 1375~~

~~11A, 'IS l'lll'c ti Nutrlimelecti/ 1.11 ,t/.l 314e)lc dtellieti~~

~~c. ILel, ttelPII eleTt' hlte' It e1ll i tti,,,t ill t letel tlil t Ye'tlitt,lelpe(lc.remt(elll5 Seetrc-ee11 e-/eie Itck~~

~~214 TFiW\Voki n BAM\i ANNI \I RIlePOR I 10 L.OW- AND MIDDLE-INCC)ME ECONOMIES: LONG-TERM DEBT AND DEBT SERVICE, SELECTED YEARS ] c)S'-)c)-4 (l',iln d Lis (16)1)s.p(enŽ')it '~~

~~.4111'Mi& ,1W 1S1crr',1/)llUltlL'-l jlh')I' ")HlOUlU/I I92tllt'M <-II011111l III vlts e* 001 111Wc SI}iti,sl,m11 11iiplAln Itcm 1(89'iS" I13 1094"" Ns(/ I '((13 1")49 Il,1) 1!1)3 1')"4I~~

~~Debtnttstinclmc I I S1i 1,4q41) 1.517 . 23.'' 361>S *, 91 145.' 1752 OfbcuiI [U 4 .4,7' 51 2 4n2'l)8 -46.2 5()2 S(5 941) 14.) 1'ri.jI ('1) 52 1 4S8S 4'' 2 53 S -49)S 4'! 5 31' () 25.1 23 S~~

~~Ddtht . 'd,of (;NP 278 312 3242 -4S2 43 3 5"' 5. .) f~~

DebtlsI IC, 14tI 1 1n 6 V-I 3('2 2( 2S4 0II 16.2 S I lll stpr m n1.zlts I 56 n-IS 1411 114 1 *2 . 42 OtftiaI('U 31' 4-12 42i 31 4 51 S 4 2 3I .3 8T6 )., Pin\lit,' I(S 1 574 5I(4 (39) -482 ;I4 17 4(5 31

~~PI incipnl tW'v lt Sni 1 111 1111.'I(. 1'.1 454 144 4. 5. 3.' )ffi4.4l('.) sn' 2S.() 322 32.1 3") 41 3 Sn 34.5 11)( I tIe) ¼) 71 I 2.( It 8 )t.9 ' Ž' 5111.4 ,S57 (m.5 2~~

~~Dehlnt-strvelv 1; ' )' 17 2 15) I5.() 242 22'' 1$'I3 13.).; 12.' n.7~~

~~Avciar 1iICte ft t Li 9t) t,%% tŽŽmttnt ' ('8 5 8 . ' . 73 1 4.2 2.') n. (Ofb4ill ('..) 5 4.') n Ž. 58SI n .6 2. . PIrisLt ( tI S 4 (o. I a. C! I ( n .a 5 l.a'~~

~~DLts1,rseniueits 122. I 6 5 I t S - 32 1 29') I11,) 11).2 Ofhcial( *) 395 3.4 I 42' 325 511 64.4 84.3 7.4 PI~~

~~Nt~t 1 0t0_I' {11e\\i 011~~

~~l((lSt-ILl IcIlIdiILL' I1 36 nIl 'I.5 I - I I I (.2 I-3 (.3 Nci tinnlSti~ owiilop-]- Ne t -i It n s i le( rs ii e" n I term elltntig -239 11.8 15.6) -1)05 54- -25 I.( -2.(Ž 2.2~~

1 1 N( 17F. .)t, jI1 1)11( I t'CU)ll ill ,ictl It)(lr ,'r I 4 i i it efi hl , 7 i p t t r, IIlr i urrwRt',- De R,,p voniig StvŽte-1. ii.a. No''' at1'1la'b. i. Pr/IIt/iieiI2. 1'. fl s rv';It e 9f A lg f rj'riCIlIt of 415l i'H e'Tll'te. W(TftM'IA c hx't/c lca twnmc)'prIr(ting) t tIle4114;wUL 13pik Dctror Rjm'ul)I-i!s e 1.L)D.s'tseouritŽ miIIlIs jI,' truilu)/rIli I) If ptviiPineout ".N'ew te omie-&t1C1P 11111111S ctu'dP 11it"I"'.Pt V\'\Vt \ t"2 Smine6c lli,,l, r8,mk,

~~AI)I)I1.7m)ix t1-.f. I \' '1I (I'im rtiuii i A PPEN D IX I I~~

~~SEILECTED TRALDE-PERFORNM.ANCEINDICATORS, 1] -'94 (o2ir/cItl,"' ,IIIIIUA/ PH,D1'el/(-l(,c cl(i;co<~~

~~(ktti,t goflio)lalp i,ttlit cnd,r 1711-SI l951?I- I 1)(92 19113 1t11)4~~

~~LW)l - illl, MiddgIle incili'l l ll',ittrLIic'~~

~~ImIprt \l.1tltI L. ) 2 I2 5 ' E.xprcr Vctitiiit 2 '0 3.4 5 (1 i' S. lTe-im ti vi -2ti2 -IS -(7 1.3~~

~~lnilpsrt solume -0. --4.(( -1.1 il(y 4 4 E\pol txcclue .3 I 4 -i).2 -ii.S 31) T -ims o't ti,td,l-II-4 -4. 1 (HA 2.()~~

~~I,pri,,-t XoIlt11C S59 IS 4 110.4~~

~~LExpor'Tt IIC.2 5 12 134 i5 Tenetis c)i tllti: -tii -i.5 -1.2 ltl ,2i)~~

~~Tormp c/ILlral'' (o rl[c Import s c/,llm S I ((.4 3.1) 3l. lwn cle,tc,'1,lstr 2.2 0i 2 ().I -4.11 eV,1iLw ti (,la (1.3 -(2 ()Ii -0.' 1.1~~

~~.\/idi,I 't acF,w .1 Ncrf .f,i,i~~

~~Iiilct, \tjlnllktcoI 3.1) -27 , I -4 2 -3 Expor1t IchIme I -2 *.5 -3.4 I (18 rel-Il cit trlte 41 -2.7 -1.5 5 2 -43~~

~~.Itilh .l feilcil cl/Icl tlii )iclliIclcl; d ', l,t HlLIl,IC. I 2 0.4 1'.4 12 8. Fcpccr)collm.l' 47- 4 3 ((.81 IO 7(1 Tm,>T oi tr,ae -((4 -2.6 -r' -I." 1.-~~

~~llillc.clcrIIc(llt? ilcin \VcWcrldc'.\pct cccluim 4.4 4.7 4.7 4 SIc~~

~~i,. l:Vcblltplil,c AlaStUImo,11( I It. 6i?clcillg !t/tlllRAlic i I/i, 1ctlc SIc 't o LMi5cI Sc~i e:lIt utilcl/t LicccllQ~~

~~21 T(nHIS\VoK..Rlis B.\No\ A,NN'l .\ Rvroc 1003':" COMMODITY PRICES, I )87- 94~~

~~C.om,moditN pri, I S.-'2 1'92 I '(3 1994~~

~~Fo,J 4.d -14 4.3 RV\ e -T1. -13-I 74 I A,riculturjl rax% natellialst .S -t). 12 2 14 I MNietils nd miilerll 3S - ) -14 2 14 F- tili/c ( -9.4 -I2 9 I 1 9 Totl noltlel ( 2 -. , -12~~

~~Pt tr-oleulll _,I) ]1 4 -5~~

~~Pil r etin Tot.dlnon il -34 -- -I2 I 1S4 Pl lelill - S -5.S -II 2 -83~~

~~Inii 'pe( ii1 h-iii4 r-,gllt. (SF)R,) T,tal nonoil -I 4 -9.' 11.3 I I~~

~~Pcti olctl I 1 -4 -1l. .) -S~~

~~N9OTE: TlIi 1O,I,1 1 B,IIIk Prin, III, lex 1,r ti,' PFiI I Ifl Cnliiifl,'I11ti.I ,Iis -IuiII ,1 Ia I p;s ICR 1h'I ' /I I l/tcv', 1,,iy i,iv l'o1 iprlIt ' 1 I 1 1~~

I,tl 1'811 89) Ilt'I,/) i II ,'{iiitl> 'ilexYI )ri tl ItI iliu i. I' I teIi' lgtS pre/, iiisl') t'ap t') 7' S I /'- 1/?, (s,iit''III C[ Itir1i h11 1, 1is .I(I', h9,I ent'll' t, ilnclut' I/lit ito l'lict 4 Hi' nth i-'lerS w U't l½,io ,I t l' z it Il I/t 1 t A t 111,0111jitItQ't's . l t" /lylI G S o,,,,,,ti ^ ( Zc t'. G,t,-ima : t l the Unlito,lt Kxiad, Ilm, E\,,\ 1 t/l; Unlitol4 SltNt,'E) 111 I/lt' dtr'l t2"1111 cmt)111C'.

~~AP'l'l N['i\ Ei_i:\ F\ 2) I DEV ELOPMENT COMN11TTEE COMNMINUNIQUES APPFNDIX 12 FISCAL 1 995~~

COMMUNIQUE AidlF.ekctiveness O(DroVer3, 19Q1 4. Effective aid requir-escloser collaboration . The 49th meeting of the Development Coo l- between rec,eiving couLitries,internationial organi- olittee wvasheld in M1adrid, Spalin on October- 3, zations and donors. For aid to be most eff,ctjive it 1994 Under the chairmnlnshlip of Mr. Mourad has to be adequate and to operate in a favorable Cherif, Mlinister of Finanice and Investment of ellnvlronllelnt. Prinie responsibility for donmestic Morocco. On its own 20th Alniversary, the policies that coontribute to aid effectiveniess rests, Cool mittee joined in congratulations to the of course, wvitlhthe recipient cotuntries themselves. Woricl Bank and lNm oil the 50th Anniversary of The LgUidingprinciples for recipients are: the Br-ettoni Woods a,reenlent, antid welcomled the WorldBanks lublicatioll Learning from tile a. Appropriate domestic econiomilic policies tailored to local conditionis are essenitial if aid is to Past-Embracing the FU1tu-e." he effective

Trwisfer of Resources TIe effeCtiVe--. Use of aid requires strong 2 TIle Committee's mail task is to keep tLlider administrative and institLltiollal capacity. review the transfer of resoLiu-cesto developing and tralsition counitries. It therefore welcomes thlt c. Ownershil" by the governmelt aild partici- .Olltillued higll leVel of total floVsSto thlese cOul- pation by other stakellolders, iulcIudilig beniefi- tries. It notes the slow rate of growvth in official ciaries, are essential. de\elopmlent assistanlce and calls on1donlor cootn- 5 The guiding principles for donors andinter- tries to enhance their aid as sooin as possible and to national ageilcies are tlese incr-ease its focus on the poorest countries. Where appropriate, the Coniimittee favors a reductioni in a. The best conditionis and policies for aid cail- the stock of debt and all increase in c(llcessionality not suibstitute for- strolig "owlerslip" by the for the poorest countries facing special difficulties. i-ecipieilt governeilet and good uo\vernance. The Cooiliiittee recognizes the special needs and Donors aind recipients miust collaborate to Imlake problemils of coulitries emergiilg fi-om eco01l0nic these the basis for effective aid. alit1 political disrulptioin and also of the poorest, b. Donors sllould Support participation by rele- mllost indebted countr~ies and requests the Execu- vant\ stakeholders (especilIl\ woolen, the poor ti\e Boards to exaililne proposals in these areas, andotlher disad\ vantag,ed IroLIPS); this helps to 3. Tle Comilillittee welcomes the increased improve the design of projects and ensure that Volume Iof private flo\vs in recetlt years to a they are properly inmplenmented and oper-ated. groWing lumber of cool otr-ies that are imlpIe- Ihe Banik should strengtllen its skill miX and menltilng econooli ic reforms. It notes uncertaill- incentive sVsttem for tIhese puirposes. ties about the sustainability of such flo\s inl assistaice is to belost - e~~~~CTechicilal Ciisnte s likelvt bems changing world coilditiolis and the fact that effective wIlCo it responls to clealy-defined they continutte to he conlcetntrated inl a small needs and the absorptiye capacity of the recipi- 11IAulIbr Of COulltrieS. It urTgeS CounltrieS no0t cur-' ieit. TA should w%ork within aind, if necessarv, renltlv receiving sucih flows to improve tllei - seek to strelltYtleil tIe iistittioilal ellviroint creditxvorthlilless tllrougll lllacroeconlomlic along the linles approved hy the FCLDDevelop- reform and to create a clililate favorable to sotuld private sector de\ elopment; these measures will attract iolre foreign porttolio and d. ILultilaterlal agelcies, including tIle INIF,the direct investomelt. The Conimittee asks the \.Vorld Bank Group and the regiolnal de\elop-

XVorld Banki Group, th(e NIMFand industrial COLuII- iienit banliks, work closely to suipport coulitries' tries to coiltinLue their efforts to facilitate and oxvn efforts to ptit in place a souLid framework- encourage private floxs to all developing and for ilacr-oeconiomic and structural policies that tralnsitioll coultris. foster the private sector and strengthlell public

21s Tiii WORIP BE\VI ANN( ;i Ri:n()l\er1993) sector management. Aid programs should b e m)ore attention needs to be gis to ill these COLUn1- onsistent \ ith this framework and with the tries, in lifferinig degrees, to iliformiig both poli- Country's own development priorities. Innova- cvmakers and public opiniioin at large of the tive approaches to achieve this ohiective are to Workings of a miiarketeconicmy and the coImlple- be encouL-rlged. The World Banik will strengthehn mentary - roles of the public and private sectors. its consulta6tions With otherdonors sho in tur-ni will collaborate in this approach. ). The Committee will follow ttp these isstues carefully at ftitti-e meetings and par-ticularly Efforts to coordiniate and simplify doLnor aid looks forwa-d to the report of its Task Force on procedures an1d practices should he accelerated, the Muiltilater-al Development Banks. Aid operations shouldl be miade more transparent to improve accountabilit'. Donors should avoid Tle Ui-guiv Round oiiilt[t/e Dei'elopbig setting up mrrechaniisms that are inconi;stent with the recipienits osn efforts to manage their oan 7- 'I'lhe Commiiittee? reviewed the reSuIlts of the bluclgets aidl implemenit aii. Mliii sters suipport recentl\ completed I 'ru1gtiay Round negotiations recent efforts in the DA(- to rclduce the use of alnd their impact on the developing and transition tied aid credits. They also urg clonor-sto mini- cOLuntrics. At this stage it was only possible to mize the additional costs associated svith trade- make a preliminary' asscssimenitof the likelc distortinti tiedl aicd w here this can be donie \ith- effects. The Committee also consider-edI the out reducin \ oluIIe. implications for the fIttiure work of the World Bank and the xii. It believes thlat: f The DAt principles provide a.n appropriate framework for impro\ing aid coordination. Coni- a. In addition to its glohal effects, the successful sultative groups and roundtable mcetin-gs ar-e concluLsionl o thetI ri_guiv Rotn.ld will bring sig- mor- effective when preceded by actis c ins olve- nificant beiiefits to devcloping countries over timile menit of thc recipient government and con`sLlta- through increased market access, the integr-ation tion with otherdonors. The agenda for of new areas into the system, and strengthened conisultatise groLups should Co er issuLesof ClCVCl- rules and instituitiois. Earls' ratificationi and opmeint strateg! aid ultilization, aid coordillatioll implemicltationl ael- therefore essential. and technical assistanice in addition to mobiliza- b. These benlehts xiii accrue pa;rtictilrly to tiOn of financial resou-tes. counntries that puIr-SuiCsond iidmacroecon omiic pol- g. Recent efforts to improse the effectix eness of iCies anrd adopt market-based reforms. the Wor-ld Bank anld other dev elopment agen cies, C. A nuimiibel-of deseloping .oun1tries shotIld toCUS1111Oon tIelil- dle elopmIllt ilnIpaCt alld OII ts n iiefeit in partictl1a fl-rom1l the phased integration i-csLiltsin the field,inee d to be SLIStaliileclaind of textiles anid clothing into the multilateral svs- "i\ cil ex-tn led. Partictilai-aitteintioisliSotilcl he e tem, althoughI the timzetaLble for liberalization to: shifting the focus fromilprojects to couIntry pr-o- l willdelav these I erefits. grams; improving the 'quality at c'ntry" ot p rojects; strengthening e aluation and disclosurc policies; cI. Some Coulntl-ies may nei cd help to adijust to streamlining procedures: addressin-g urgently the higher \vorld food pri. es and the erosioni of adequacy of field office networks; and1cchanging pretfrences, althonoh mMost of themlI sill galin staff incenativ es to foctIs on de elopmenit impact. from the redLLction1 of agricultural subsidies.

Initial studies made h> the Bank and the 1\i1 ii. Aid caniialISO IICIP tO ')ti1YIL1IJtC PriVate IM St- in1dicate that the ne(gaItiveeffects are likely to mncit; instituitionis suich as the ]u and xiiA can3 play a valuable role but mtist pay clue attention be fairnl small and that eXistil inestrumntts seem adtccate to deal sswiththeml. Furtheer to deveclopment effectiveness, resear-chi may,! refine these findinos Meanwhile, i. MIant of thes' pl-ilnciple's ppl\ sith equal the Bank aind the lii munstbe reach to address fo-rce to the countries in transition. Hosese r, these probtleis.

~~A\riIN\ I\ Tii X. 21'19 C ON! M UJ N I Q UIE S APPENDIX 1 2~~

e. In the longer run it is important to keep uip the April 1, 995, uLide- the ciLairmanislip of momenituiimof mu1tuallyadv antageotus trade liber- Nlr. NIohamed Kabbaj, Minister of Finance and alization and to avoicl nev forms of protectionlisn Investment of Mvorocco. The Committee extpressed its deep regr-ct at the departure of f The task of the Bank and the 1Nil'is to -assist- 1\1~r.M Lew\ISei T .Petnadrcre Prestonl and irecorded itst gr-eatra developing and transition counltries to ease theo chianige to the new trading system by pro\vidild apreciation ofthi Wrdistin s leadersi ts ___ ~~~~~Presidtentof the World Bank. It offered its coni- policy advice, finanicial- support and technicial g~~~~~~~~~~~~~"r3tUl.tionisto Ihis suiccessoi-M r. JamesD. assistance in order toCmaximize the gainsr fr-om \N ve~wltellsolllf- n. new malket opportulnlities. Resource Flows to De'eloping crud g. It will also he necessary to bring the transition 'i-einisitiohiCorllrturies couiliti-iescountries(mn(many\ of whmaentyt-ebrwhoin aL-einot vet memblersoff 2 Tbhe Committee xvelcomeld the continlued -,vrr) into the -multilateralpr-ocess as qiick-l\ as TeC)mte ecmd6 OIile hiobh lev el of total resour-ce floxvs and the increase possible so that they can fully share the benefits of since 199!) in various forimis of pri\ate finaice, trade liberalization andl enlarlged market acces whtsinoBankeandthe T acisi especially foreign direct investment, xvhich does V,ithoLt -lisci-iiiiiiiatioii. The BaLik- zaiicl the INII'-: nlot addlc to del-t-servicilig Lircdeiis.At a tii-neof should encoui-age and assist thiese countries ng s their effortsto become more ftrllx integrated into rapid globalization and liberalization of finanicial thieil-effor-ts to b ecoiniemor-e ftillx inte-r.ted into the multilateral trading system and to adlopt poli- markets it noted the recent high volatility of financial llovs, as exemplified by currency move- cies that xvill ticilitLitetlheii- acokessiori to thet Ile\\- WVorldTrade Organization (w-i () nients. BuIt portfolio Ilovs ha\e declinied, and Ministers recognized that markets are likely to he S. The Committee believes it is essential for hoth more selective in their provision of such cLapital. institutioIns to collaborate closely %\ith the wIG and This emphasizes the nieed fo r recipienit cotintries notes that the ministerial declai-ationi at the end of to follo\v sotind miacr-oeconiomiiic policies to gain the Uruguay Round calls for early talks between) or maintain access to private miarkets and to the Director-General of the \%,1-(anld the heads of mobilize significant Ionmestic savings They the Bank and lNxl shotilcd avoid excessixe rcliaLnic on short-ter-m flows to finance Jonger-term development nleeds. PopulfationI Thle strong policy hase and solid long-term pros- 9. Ministers from-ithe par-ticipatinlg c-ou1ntrics '\el- pects of many de\ eloping and transition countries comed the outcome of the recelit United Nations suggest that the! shoUld be able to attract conitnl- Confe-erece oni Population and Development, LIdCtforcign direct investment. which it discuissed at its last meeting. The Co)m- mittee called on the Bank and conference palrtici- 3. The Comimiittee expressed its COlnCet'lrnabout pants to play an active part in implementin" the the prospect of a fall in total official develop- Programme of Actioni approv edl bv the conierelrce. ment assistance. Givenl the pressing nieeds of the poor-est couLntries, it uirged conltillued stromit Dese)tifi cttion support for the International Development

I(. It also \velcomilecd the agreemernt on the antidce- Association (IL)A) anld for the Special Program sertification convenrtion, called for its early ratifica- of Assistance for Africa (sP\). It welcomed the

~~tion, and encoLuraged the Bank to continue its recenit agreement in the P'aris Club to imple-~~

actiVe Support toi de\ elopment aLnd enviro\nil cni- ment "Naples Terims"'or the poorcst and most tal management in drlIand areas. heavil, indebted countries and called for them to be applied fleJibly. The Committee noted COIN.i UNiQUE that some of these countrices have a hcavvy hur-

Api 27, /1)1)5 clen of debt owed to multilateral illStitUtiollS. It 1. The 511th meeting of the Development Comn- inv ited the ENecutiVc' Boal-ds of the World Bank mittee. was held in Washin,gton, D.C. on ald the IimF to continukle their review of this sub-

22i) [HIc \WV(IRI BANK ANNI \v Ri: i()KNt1')° ject so thalt Ministcrs can returl-n to it at the next cient resounres to maintenance in order to make meeting best uise of existing assets and reduce the need for expensive replacements.

4. The Conimlittee welcomed the establish- Impiro eienit will a1lso involve nimorctuse of menit on JanLuary 1 of the World Tradc Or"lani- private finance in variotis forms. The options chosen xwill x arv for eaclh country aLid service zationi and ur-ed close collaboration between the WTO and the Brettoni Woods inctittitions. It depentdin on conditions such as level of domes- called oni the BaLnk anld [NWito ass ist those coutin- tic savigs ad the depth of fnancial markets tries that ar-e n(it vet members of the \T(o to Private participation cLiinhe cric(iraged through joIn the or"inization and to become more1CIfLill' buildoxen-e lrte and uild-oxv n-operat -trars- inite-Tratedintegrated l int to tnleth MUltil.aterl-3 tradin-htrtn svstem.'rliaea er conicessions, leases, opera3ting contracts, par- It ncoted the Banks'>new estimates of the likely tial guarantees from the public sector and impact of the l Irugua' Round up on the trade ot privati/ation. The aim must he to pass the corn- dexelopig COUiltr'ieS It xveicomed ev i.ence mercialrf risks to the private sector anid to redtice Oll pu,blic funding and public guarantees. the positivthe epositive effect thethe.Round RoLtincl willviii have on)on imostmost the .a1i developing countries, especially on those taking '. The Comimiiittee agreed thlat the poor stanid to this opportuLL itV to refoml-ll theil- own policics. gaini.directly and quivkle from better infrastruv - It noted the Bank's viewx that the adverse ture, \which can also help to improx e en ironimiieni- impact uIpoin food-irn porting countriCs and tal conditions. Donor- countries rail help the those that x\'ill lose Preferential access to ildiuS-5 pnoorest coliltl-ies bV proxicling finan-cial and techi- trial markets is likely to be smalIl It asked tile niCal sUppor-t anid iilxestillenit gu arailtees for the Bank and [NIli tO molnitor the impiact oil indix i- dexelopnient of infrastructure within a policy dual couinitr-ies and to be prelplred to ilip as fraillex or-k thalt enCorILages efficieit operation, necessary. It agreed that ftirther liberalization maintelalricc, and responsivenessl to risers. The of tile agricultrLiral alld service cector-s would multilatel-al ils1titutioils (including IDA) haxe a provide important additional gains. miajor rcspolnsihilitv for providing advice and -ifrastritetire HIlailCial splporf t. 'They Canllalso pliaxL a CatalytiC rol ill nmobili/.inlg funds fr-oii Liwider\a ranlge of pri- > The Commilittee noted that developinlg cotini- satc sector SOURircesrSill' all the meaielsavailable, tries currentki invxest over $200)billion a year in inJucling Worlrl Bank griai'anItees, and IK'Cand infrastricture, ilor-e tIlilzi90 percient Of it in the NIItA\ resoLl-ces. puiblic cector. AdequatC. cfficient aild Car-efril- designed inlfrastructure x\ith frill regard to the Social Siummnit environilileilt is crtucial to sustainahle develop- S. The Committee generally xxelcoilled tIle out- nmeilt. lorc iix'estment and imp-ox cd perfor- Comlle of tile r Ccilt so( ial Srimm it in Copenhagen mailce in infrastriLCtuLe xx'ill requlire a Series of anld agreed to discLiss the imLplicationls for tile reCforlmlS ill the stILiLctrirc and delixery of ser- dex e lopie alnldtrailnitioln couiiltries and for donors x'ices. Gox ernments hiaxe a crlntinruing re-poilsi- and the Bank Lianntihe ili, at its ilext imleeting in bility, xx'hether as prox'iders or regrlators of W'asililgtoll, D.C. on October 0)1 0(9;. inrtastructrure. in particrilar efficiency rer}riires prices that reflec-t all long-run1 ccolloill i costs, E.vecutim'e Secrt-t'hi i01-re busillecslike man3agenlleilt, in. rasled 9). The Conlililittee c \prcssed its deep apprecia- inv'olxemilent of tIle prix'ate sector, aiid bctter- tion to PetCeL NL\ FItfiitld, the retil-ilng Lxecriti'e targeted sribsidies. SriChIreformls should be Secretarv, foI his dedicated service to the Conil- designeri to inlcrease incenltiv'es to dcvote sriffi- nlittec ov er tle paPst forir sears.

~~\I'I N\)[\ T\\ I I' 2i 1 I N DF) X~~

Adjunctntntlendin ~,_ 33i \Wtlii IdBiitk Sc11fp01t f. 1or n\MIIO io I tei ItIi LI I-tittI ltItiIc Afri- n recgon dee"inp1Ittent ill I st AVi mdICPaCifiti, 038 ci \ il ser\ icc: r-eon'mt Fmtirttnittntnllv Snut inible LXveiopii nt,

econnomc pterfttrttiici in 1'94. 55 Lumope anid (Central Am i Vio pm,iinpi(iltlr\ iltltati\et inl, 60-6 I ciitiititieirt>, ditbuiitm ittei1ts, litt 11inn>rers, 82 tnihElc i-rni-tn-u perforittali(e ill ~7 eonr'ltic pLi-forminc It in 111)4,' )tntt-t\ -LLcdkiti titll aid ittic Ft thc ~oil]dBjitk, I; I Il 1tnIth-serv iL- deteroratinil01 inl. 83((ty) prn\ aIte sect1r I Idc\ it Itll iltt tUpttilrt IFt tic, jinifritr ijttirec Lfeveilopitclelt II Itnorted I' thel \Worid Bmitk LI WorlId Rjink. 8,4-80

Spec ini Progi tnit tiE A-\sslt n, 'I' 4 1. oDDtprttionnttetLlttfRnnk-siipportned fpro0)0 tV 8`7 Wol akI tI sO it n (~fovin-rcdiien t, lt Ilrik hv tie \Woiid hank, 821-83 Arnnii)1I Htdirocit tiL fUPiL t SI-,I1~1iis Ltolo Plinel \Voii IC] an11ksupport t or PI-kItat secCtorde\ oliipittent,

~~RLIIL111111, W01Id IB~llk I0. 5'8 F wcutk dictela m i n L ii t~~

~~Cnfiii:iitciitiz (l~~~~~~~~~oitititt,,- ont Oc clopirtt ut i-iLcti\ cic-'. 1I~~

Coniiuit,itn irtist itlmcli ,r(trmllt 42 DtllsiLer,tiitt of iti\ i ti . ItinII tn lt Popuktinin mid I Isintan ResourLcsDe\velopment Ujj 1) - eLIntrtments s iLntit~tiLto i\ lc,It6 Fund, 42 itjl ft 1 ii nLiliL niiVt n 13 SpLceild Pioit-ait oi A~ssfstmnit ('I I, 41 , 55-r't tr,\ite' o to hie siit lny ItrrttitL LiIoi rLlltPll' I' 13

~~C oi ltzsiiitnt G(Pin p tIn iltteiittionlti A-greiiuturai Rt:senrIit -~~

~~C(tI Aus Itilt Ito L (tuI fLI t I Atsitt t h, Poorecst, 2-I litre; [ltLnttcttA tLlil~~

~~tillitt L intiti s let tAt rc ~~~~~L'f1111itt Inl NIC\1Ltt SLIitP(rtnLd its tilL ('IliL Bink, 3 i-3D', 89~~

Dci t-IoLLitLtil 1i FLiLdilt\ tLtr IDi \-,iiti\ CtOllltTrieS, i13-14 \-\ tid B itk I istantL for il SttLith Ati 74 Di L ~'oiitpltLittCommltittittet. Tnsk F'trcc onitihe Role oif tin Fctr-i1 ll LIII t Lt ilt\eI ttLIltC NiiiitiiltLliid L)Lc'clpntltt Rnitks it fJtttllitte~) flo\i i ntsI1Li14, 'i)-) t 6 i Il-1I Itt itt SttI',L' latcil Bnitk ttlr RLclli~t,ti tirtlt fk s ttt F 1t \Ain jit P Alifc. tnI-it anit Dcet eopltlttltt: iitteilttiolult Djtnscit,itIc.nt fiti\\ Itt 'Sithli .A in, 72 AssoLLintltiol - WitriL BuitisF ilreig IitI It\Csct tlItteIIt A LI ~Iistl r Lr tir . D IS ulLitL lItt. it titiL II I,fI 1Iiii, 37-I , 7 ttil/tti1, Ses'Prit JItL se C1r detnktopiiteitt

~~38 il/l' Forest PttIliL I mpieltte1ntatiltn R2tioi itLItII tlor itit(I\ZIti\L, Appit ~itnitL' it HLIIttIIIt AIItLI SoIniC~~

~~FLInt Litiditt1ttlL ditVlitt)1tiLtcltt. S11- HiLlttilt-lnSltr,5 Dc&teittpntitlt tile PartiLqip tttrv de,s Liopltteitt~~

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~~plrtfo-IIt )tL I fILl It lit.L I ~I71, (VitrcI' i3niik. _ )jilt 1 SLLL- 1 tl t is IL ii ltt it-it W )ImLitBitkll iLililit tItL1 lliti ti05, 18 iIi`11%tl~~

~~FduLnatitt ti\cdillitnl t Lnttt itLLR L itVIlltltcit ( IdiL Bnlnk 1st1ipitItI 1111- lit1 tiChIIitdhoo i nltiVti tiIIL,itIOlt5 tiiptdcitiLtlopm nth-~~

~~ListAsi,iititS flIL >01115 Ilit, ~ ~ ~ ~ ~ ~ ~ ,-fI CILILM II111iCU~~~

~~NiiddieFnst nitci North \V(tiBmk u potfoIc h1L tn iicj~~~

'~~ To;(V t~~[ )i B 5\K A,sh\l hip mIn110,M1113 po ri , c 111teCIi+ m c in In trastc,t LITor` NllasL imI. SeOnd'1( InsItittLit ito IIL Docs t'ItpI int Pr-oI ct, 57-5 ILiEstind Asia andicPacific region. t lsio iaca rii n 3 5 P,'H \Worldi Banik utpport for in tilt Eurfope Land Niti atadN rhArc t 11 Centrail Asia resu,ionl',-4-86 M oidleElil nlsn N sor scmllcIailts,ionettases 0 tb World Banik StIpI01tot fCir InI thel Latin Ani1i Ti,a OTlrcii]tIfi']n o.f Iassistaisee 6L in, 11)2-t1(1l3 I, t anti the Caribbean region, c2-OR L'oorilOVitc lerort sn ill,)0 117M In 5P~~~~~ton I ~~~~~ World Banls0111ensro isn-ienta strateg fo, (1 Artini Ill H\ droelietrit ProlIet, 40 World Bainkregional se terstrategs for. 11 5 Ii l I 995): r ueqtie tI for in Sp(ieton,40 \VrlTl PBank tLIp1[It ito I i'llris ate setCt orI IIISI t ItItIc,IIal I De eloitissII sIt FLIIid See, 1(lciii a11,11I,IastiaIILce cu'St'loriIpolleit,(if Ii Ilitr-AiciriCain PIs'\Celou1ilient BLan. Middlef Eastanti North \trii,a F.onomiic Soninsllit, cottinnLing Issithi thie \-orItI Bank, 4 1 \World BanTkpirti,_ipa'tionil Iii

~~International Ba,nk for- RcLonstruction N IolIt I laterIalI Ill s I-it (LIoara[LIIteeAgny s. I and Dev'elotpment (i[i[) B gariJJstec' progrmiin, tiS al I I,12~~

~~asisqltanlceto thecpoorest couistrues, 13 (loins') t1 cbnir1al as-IStaliste ~ictisIties, fisata I95 I'1 3) hirossIo%ings inl fiscal I 11Q5. 131, 1 33, 13'4 (to/jo) I35,~~

135m(tmebtS l)oe,tilit NitnnI's lonplas''axis),Zi-2 7 5 ~oilliliiilic'iitI fisca I 7(1,I? 3, r(tli')NGO-\Volcl Bziik )ioisinittee, 213-2~4 dIstsI I I`Cse il tots, 12(i/ 7I 1 t'a(piitl siibscripjtiitns to. I SO Noiigmserniciisital Ori4JTli/AtiCtns See'\VIIo ldBank leni'ng, laite in iscLalI LiR, 132 li1iiidC 'issets ill aisageisleist, 1320 33 )i\serJti0ttI's al1111tiatiti liosI isTI noiicral C -1I st, its 13 acttIn, t Ies I is~Lsc,i IJ1) 5 4 4 4

set incoisse,13, 131~~~~~~~~~~~~~~~~~~~~~du~Lo, I e'Ilt f 1( 1tiai - Fipsil ~ nhts' 3 ptliblictiitissl issued in liseal I ltiHz; 4:; IIsiitiIilitt itIclol l",I,IOf res cus' sprese 4tttlt-sisgii'sA reese,I3Ki siogle-csirreiicyloan prttgranl 13PL131I IAOLI

Disputes(s s i) actis itii's inl fm(Il I t)1ich 13))cfc,I i'lt cs,2 lustc'risaitionislDes\clopilsent A,ssiatcitut lilt ) \c''Ketytist tdr'lti m5il"tl l,,cililntin 11). ,i5i5tiiit'itllrcstccsnit tl ileits I 13 /Nlne)1-und fttr Imittsatis A'pproadcht' ii HsI- an1 and

~~Ailitirseosenlts In fiscal I fLeTCHI (oi 37PaTtItic st]lin Stoun i,c tt k~~

l3 Ii I1, I I (/toj)COI "l FifthiDiussc'ns0tti ir1tOgraiss, 13, SnLe cltlii'l eiess\itf tbc' lisc,al 1)9-4 pttgr,nis, IRu (ltts [trl1l1stO ilIIAiilxtii'CIlW t IntetisitittisalI-iiil,i,:e Cr orlititto" (if(7 ,iiiistial.i sLi"r t on 1portfoliopserftrrim,iiie, 42-43, in121-21) 11)(;, ~~~~~~~~~inthc'AEri Asa aTucl liu /cogte,7 collab,oratissssitls the \VoislJBanik i [iris\,itc'-setti:,Ii h FztAiaJl PA i- _-,J I desc Itt)iill(ilt 3)Iii t1ii,'Stisutli Asia Irc'ulWiti clisclosore ittlicssty usforissatitsiu Ogoyilth Iis' iirt st'e an (-Cuitiajl \sia rc'giutll, 8,7 1 t fisssca Fin'fttrlailcl'tis ica ct 2 in tlic Nlid lcIdIt'am i ad Noitli Alr icaiIC' oil, 103 t m ~~~ I-, i 01) tt) c'i atittuls c'si~~~"\liiatitn rc's'ic's it, 4- 5 c,,, 'c*sltl ~~~~~~~~' -. ic's tc s'~~~~~~%tt itisct ills itls im"lls lilt us% resittll cnlii, 43-44 lipan Ps5s'siiiiiits.0)tt ct 8) .0 j ctifiiwaiic of Woil d Baiikpittic 5,. 4 I scloanlirs inldft'll(It Shisp IlrctgransM, 12 Pos 'r1tsIrc'iut Itiso Prilics'iicl HtIiisai Rcsitir,e Des,,Ihlsop lent li(rtllraif Ia'g2''c'cinitcI'r\ciitioils (P II),20 21 (toild} P[ I Il FLI ])LI , 42 11A~~~~sI,c'ssInl Last Asia, )r~ It it ) Fond, \V~~~~~~~orlcldBaiiks srttgrt's in ic lc'Aicns si\1tsc Is 1 -2i)

\\"orlcl ml, M11supIrTt Itr it i The Arita ric''itn. 6il-It2 iKoirs, R'isublIu,Iitt, gradJuating1 Wor-ld Baisk Ic'Tdisg,II 1 ,~ us \\'Wirlcl Bat1sssTipp1iti t Iltli tILt I:1~ A ii m )Ltac ifi ru o, LatiusAisicrita Jtiic tIhe1Calilb'aIsL rt_'ci(il \VO1LcIBankI sop sIIitu IIti isl the IAiIIOic nilcd

~~aild Cosirc111i,tittui IT), (1) Ceistra I Asia rt'''it tis, s cttiiliilitiiis'uis,dislosirsc'iiic isi lct tinsl'r, ) (tIhs'l) \ViTtrlc Baisk siis1stt Ion in tIlt MiddIlIe F.ist intl~~

t c' 5 ttilttili aicl sc'ctttr ss\tik (ic' Is%tilt Prlrs .tc dcci%ctt' lopliuislt \vtuIld Biaill, OfIL dt7 fi n a i,ial -st'cttt Icilclnlitu lix. tlic' \Vw III Ba)Iik, 31 , lc'ildhii4 cnIlu lluItnTls'nlts,I' tin Vt0 dIliBui,tll 1k 1 10_ I I ITIi (to/tI e) Fore1in lis c'st\I"I.Ic'II) ,\tlsI si`,SI IcrICit I .J 3 (Isis) Ic'SSOtIII frTtiis tIlt' NIlc'is ai 1 rIiis uuaaLI Lt) IIutt'es lictil' II I I i I,IiiStrcaiil'c I ' I,I- 3031,3)fss

I 22sL 3 m ieofin -antelr>4taIil> suppothrtt'd, 24 lb(15). 32- Vitillifl nliieirlmIl dteiiciitj\. \V\"trldi Bnk hI'il\'LIt '- ti .l>esa( il tllt\ 33, 1 filn-lins in, 20) World B.ank Gr LopiIILntdilIg 011 tIIpporI-t Itll 31 Woi Ili nL iisuppot t toi- in tli A - i t'in , I \i"-3-Wr1 1V-rnk W rl' Bank sippoi rt l'i in tlu- Faist Asia aind adiC tn nt Icilding in tluL I (18 36

Pacific li'4ltn I _.. __ aISStint>LMl.to the L titllest oltlitrie 13 13'tigio'} WoT-rdBLank s`p otioI fill ill the So1uth \ia ell 5- 5 ifet I 7t-7a \Vorld Banlllk 'Liilj Olit It ill th1 faTIrope iL1il) 3t Centrall A ij I "'ion , `d 1-8- i i fist - 3 World Bunik i it ftr in the iidd last and daIlliItill'i'li sln nIullsI , net trails Nottlh A r iLci rL'ion, ;10-1l H tO Ahlica (io (tI lc) LomI nitiltelltt iiShOiS'S- niills, nIet traIsfrs F,at it/tioll to Fast/ \Si;1 id PI fiitc i I'(t lt'ej B nink Gi oup aLIiut lilC £O1. 3 34 niiaii1itmeits, d 1is-tii-s men1 nelt,t ti iLSfes- pioigie- in I iiioyu mid Central Asia 3- ', to Scnitll ,\Ci 5 (tab1c) pio-g,IS ill Solith ,,2i;j 72itiiit illeit Li iisi itei It"Itt tialisfer, to E rtiipc

\\>t i-Ltl B ink tii.l. lit t Il inl Bo.lisi;]a . .4-3 ;land Central Asi; S' (nil!c ProlLt Piej'cpl1ti1n1 I;it ilits Stc TL'hllaI IssilaittI Con(loliltilltelnt. Lii l9t meets lit tinii tfers to Latini P"l,hit Ilitti ilimiton ( tllt I,'l -li \Illtl'ri, allLi tLL' CLild-i -ilI nl 2 frti,lt) ntIlnlitillen ttt s iis 'iAt, lntlmshu tlrllasfers9 to,

~~R_,LcmL21 pi-mi M ic WM nk, --- NIid i"t 1FiSt aittf North Aftri.L, 1(1 ptabld ) Researchll Illrcter.ina ofl thlv Cl-ni LI hait[1115 l'>-'l. tIxilOiltilL ilk ustamt-in,hlie dLestlonlent~~

~~Rtc'Sttlcneitl, -i t p ritrootoit m ins ttlilin itlscitnItm ilt'tilies 24 -), rctsi'tthinci ,4.IidimiL4t -44 pnilil ipIes ot iII (1/-a,)~~

~~Russial hint> iii IL mini Ct' Llerell)leiil< t activities, 18-24 El'ilxroniailtll Niaia\ ell)t i'O ilt;cLjt t 86 cnil tibc-ship, 1 4 Oil spill i) iKomni1 3. l8 ,) S-, I 1(io lllllln , I'.~~

Rsaiitla, \\ trld-1 Lini aI sistanel ttkL S i/'- i pu mIt it' Ititi'oil aLtlis \it1ilt tic. 1'1-2(1 21 ri\ altt ctoltrI' tls elopiaeI1 lt at, ti\ ities, 24-35 r-ealIbilitutiuonot Im ill Lttljlt''L I 2 Sellnegal, rIs atc Sl t il \tilitstil'llt AILIII ( Oilla 'titit tl1 .t's" relitio is' itil n1Ctliiu tttl 'ntal raIlu;.ilIiiu (ired it ( 1 22-23'' 23 (ed!1)

~~siligl-ciir7,si i,nC iill plitt .Illm 13, 1- 1-32 \\t il~~

~~poi1f oliO-Ilimm'4 'l; ieIlt pt Ir1liliL111ct' 1hNtilt' \Vorltl RBank. -S lo\t'lstr -r'tii C lit Ii I I L' s" Ill, 72 pli\rll tifitill Is'l 's, 72 L 1LS tit f : ill,~~

~~\Viill BaikL1 Iul- t t I prmisld ' Ls"e -ttii WOI.\''IJ T11'''101 10~~

~~1 W tillMICI FBITI~oi'iI . 'iilt, L iiiIIk l earttvel. ['Ii Mltl' -I t0lt \j'iwll Prts1iaia tIlnelA ite Iilztt'-.s tI Sit' liil tgitl~~

~~l'gl-LlillPli O "I A1L,itLm],, -1 Seet Atriciv. lcioil. li,Tllli,,g11"~~

~~l h a P ;liltpIllmL Fsit~~

~~Instlit.utinal; L) It Ii',lSilt at onti, 34~~

~~6 s'lpplied s ti I 'i 2 1) \Vrr1lTl R3ink ItIi itil il 11814, 3S-3 ) Truist 'Lls, 4-2 'I'u1'kt,'8 Ihealt-i-i.i - 1tt ds, S' (b/"!\)~~

~~h i i 1 17M1 LI1'1111>lIllj Ol't01'l I", ti]i Worldi B IIk, it I tI4~~

~~I ititi i Nititos L)t'D\lupl Il I'l-rh IJal-lIlleI 1 (I 'st Sit~~

~~//lSo ( olI1tLit;liIIL Gt_olupl on1 Imct L]lizionAl Agiildit-il.l1 GIN aiIt \ i i ItIIsiii tF ( it1ti-iL tt ssi>t the Ft st'~~

~~( B I i11 5LIi tItIiillIt II F aIiliit~~

~~2'24 Tli \V B.II\FACxI RllsiI))~~

~~THE WORLD BANK A partner in strengthening economies and expanding markets to improve the quality of life for people everywhere, especiaDlythe poorest~~

~~THE WORLD BANK~~

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