WORLDBANK S INTERNATIONALDEVELOPMENT ASSOCIATION
AiinuaaReport 1971 Public Disclosure Authorized
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Table of Contents PaE President'sLetter of Transmittal ...... g
1 International Bank for Reconstruction and Development International Development Association
Office of the President
September 27, 1971
Dear Mr. Chairman:
In accordance with Section 10 of the By-Laws of the International Bank for Reconstruction and Development and Section 2 of the By-Laws of the International Develop- ment Association, I have been authorized by the Executive Directors of the Bank and the Association to submit to the Boards of Governors this Annual Report for the fiscal year July 1, 1970to June 30, 1971. I have also been authorized by the Executive Directors of the Bank and the Association to submit to the Boards of Governors, in accordance with Section 19 of the By-Laws of the Bank and Section 8 of the By-Laws of the Association, the audited financial statements as of June 30, 1971, and the Administrative Budgets for the fiscal year ending June 30, 1972. They are contained in the Appendices of the Report.
Sincerely,
Robert S. McNamara
Chairman Boards of Governors International Bank for Reconstruction and Development and International Development Association
2 The Recordfor Ten Years-1962-1971
Expressedin millions of UnitedStates dollars
FiscalYear 1962 1963 1964 1965 1966 1967 1968 1969 1970 19717
World Bank
Loans:Number 29 28 37 38 37 46 44 84 70 78 Loans:Amount $ 882 $ 449 $ 810 $1,023 $ 839 $ 877 $ 847 $ 1,399 $ 1,680 $ 1,896 Countries 19 19 28 26 27 33 31 44 39 41
Disbursements $ 485 $ 620 $ 559 $ 606 $ 668 $ 790 $ 772 $ 762 $ 772 $ 955 Repaymentsto Bank 104 113 117 137 166 188 237 298 329 319
GrossIncome 188 204 219 267 292 331 356 410 504 578 Net Income 70 83 97 137 144 170 169 171 213 212
Total Reserves 699 813 846 895 954 1,023 1,160 1,254 1,329 1,444
Borrowings:Gross 271 121 100 598 288 729 735 1,224 735 1,368 Borrowings:Net 104 -5 -32 250 64 503 215 698 299 819
SubscribedCapital 20,485 20,730 21,186 21,669 22,426 22,850 22,942 23,036 23,159 23,871
MemberCountries 75 85 102 102 103 106 107 110 113 116
IDA
Credits:Number 18 17 18 20 12 20 18 38 56 53 Credits:Amount $ 134 $ 260 $ 283 $ 309 $ 284 $ 354 $ 107 $ 385 $ 606 $ 584 Countries 8 9 8 11 8 13 14 28 33 34
Disbursements $ 12 $ 56 $ 124 $ 222 $ 267 $ 342 $ 319 $ 256 $ 143 $ 235
UsableResources, cumulative 758 767 1,451 1,593 1,682 1,767 1,807 2,176 3,182 3,343
MemberCountries 62 76 93 94 96 97 98 102 105 107
ProfessionalStaff 364 429 463 532 662 724 752 961 1,170 1,348
3 *4 V~~~~~~~1 PART1: THE YEAR'SACTIVITIES
The World Bank Group made good progress which had notified IDA that they would partici- during fiscal year 1971 toward doubling lend- pate, fell short of the required amount by $828 ing in the five-year period 1969-73 compared with million. The effective date was postponed to the period 1964-68. At the same time, the Bank September 30, 1971. and its affiliates gave increasing attention to en- To permit the continuance of IDA operations suring that their assistance contributed to the pending the completion of action on the third re- optimum development of the recipient commu- plenishment, several member governments came nity as a whole. It was to this end that the Bank forward with advance contributions just before intensified its appraisals and broadened the scope and after the close of the fiscal year. In June, Den- of its country studies and reports. mark and Finland notified the Association that The Executive Directors during the year de- they would pay the first annual installments on voted much of their attention to the basic policy their contributions, amounting to $8.8 and $4.1 issues raised by these reports, and also considered million respectively. Other advance contributions more than 30 recommendations on Bank policy received in time for mention in this Report were made by the Pearson Commission. from Canada and the United Kingdom, each The Group's ability to maintain its projected amounting to $50 million. Others had similar level of operations in the coming fiscal year will action under consideration. depend in part upon the timing of the third re- Also after the end of the fiscal year, the Execu- plenishment of IDA's resources, since by the end tive Directors of the Bank recommended to the of June 1971 all of its available funds had been Governors that, without waiting until their Annual committed for specific projects. Meeting in September, they approve a grant to Negotiations for the replenishment were con- IDA of $110 milliot out of the Bank's net income cluded early in the fiscal year. The resulting agree- for fiscal 1971. Voting by mail, the Governors ment, however, which proposed making available a for commitment about $813 million a year for approved the proposal early in August. three years beginning July 1971, could not be- The need for IDA funds, and for more IDA-type come effective until donors pledging not less than assistanceas a proportion of total aid, is reflected $1,900 million, and including at least 12 of the 18 in the analyses of the flow of assistance and the Part I (richer) members, had notified IDA that they external debt of developing countries which ap- would take up subscriptions and make contribu- pear in Part II of this Report. Projections based tions as specified in the agreement. By June 30 on the debt of 80 developing countries as of 10-Part I countries had completed the necessary December 31, 1969, suggest that their debt serv- legislative or other action and had notified IDA ice obligations increased more than twice as fast that they would make their contributions. Their as their export earnings in 1970-by about 20% pledges, combined with those of Part II countries as compared with 9%. The growth rate of GNP in 1970 fell off for the world as a whole. The fact that the drop was especially severe in the devel- AFGHANISTAN-An Afghan farmeropening an oped countries raised a cloud over the export irrigation ditch. An IDA creditof $4.7 million will help prospects of the less developed. to modernize the irrigation system in Afghanistan's Public and private financial flows from the 16 fertile Khanabadvalley, in the northeast.FAO, the UNDP and the World Bank provided technical principal aid donors to developing countries and assistance to prepare the project for financing by IDA. multilateral development agenciesincreased by 5 more than 8% in 1970 over the previous year, pollution measures to be carried out. reaching nearly $15 billion for the first time. Vir- In line with policies agreed to during the year tually all of the $1 billion increase was in rela- by the Executive Directors, the Bank Group con- tively hard-term official export credits and private siderably broadened its approach to problems of funds, however, channeled for the most part to educational development, and its cooperative countries well above the lowest level of economic agreement with Unesco was expanded to include development. The flow to some of the poorer assistance in educational planning. The Group countries of Africa and South Asia continued to gave its first major assistance to agricultural re- decline, both absolutely and as a proportion of search, both through a loan to help one of its the total. The aggregate volume of official grants, members build a new national program, and by loans and other long-term development assist- joining forces with others in organizing a con- ance remained about the same as in 1969 and sultative group to support existing internatioLial there was little change in average terms. institutes working in the field and to help in the Development financing commitments by the establishment of new ones. In the field of water three Bank Group institutions combined totaled supply and sewerage, a cooperative agreement $2,581 million in fiscal 1971. If operations are was worked out with the World Health Organiza- maintained at the same level through fiscal 1973, tion (WHO), comparable to those under which the five-year average since June 30, 1968, will Unesco and FAO assist the Bank in the identifica- have more than doubled the average for the pre- tion and preparation of education and agriculture vious five. years. Measured against the earlier projects (see page 31). period, lending by the Bank itself has expanded Loansfor rehabilitation by 116%; credits extended by its concessionary- In further steps to make the Group's assistance lending affiliate, the International Development to developing countries more flexible, the Execu- Association (IDA), have increased by 119%; and tive Directors discussed and clarified policy with the Bank's specialized affiliate for operations in respect to non-project lending. A loan of this type the private sector, the International Finance Cor- was made to Nigeria, to help carry out a large pro- poration (IFC), has raised the volume of its loans, gram of post-war rehabilitation. The Group also equity investments and other commitments by engaged in other forms of rehabilitation lending, 179%. providing assistance to Peru after an earthquake In the fiscal year under review, the Bank made caused widespread damage, and to Pakistan in the 78 loans totaling $1,896 million in 41 countries; wake of the disastrous cyclone of November1970. 53 IDA credits amounting to $584 million were The Bank Group also took steps during the year extended to 34 of its members; and IFC gave as- to improve the quality of its research and eco- sistance to 23 enterprises in 15 countries and nomic analysis, building a stronger base for advice made one regional investment, for a total of $101 and technical assistance requested by member million. Details of IFC operations for the year will countries, as well as for its own operational be found in its own Annual Report; a brief sum- needs. Problems of employment and income dis- mary is included on page 27 of this Report. tribution were given special attention in general Aggregate lending by the Bank and IDA in studies launched during the year, in project prep- countries of Africa, Asia and the Western Hemi- aration and appraisal, and in the preparation of sphere changed only slightly in fiscal 1971 com- economic reports and sector analyses. In the pared with the previous year. Financing in Bank's country work, strong emphasis was placed developing countries of Europe showed an in- on studies in depth of individual sectors. crease over fiscal 1970. Responding to concern expressed by many A broaderapproach Governors at the Bank's Annual Meeting in Sep- There were also shifts in the distribution of tember 1970, the Bank staff undertook a study loans and credits among the various economic during the year of the debt burden and the debt- sectors. Most notable, perhaps, were increases in servicing problems confronting the developitig education and in lending for urban water supply countries. An analysis appearing in Part II of this and sewerage improvements. While the absolute Report is based upon work done for the study. amoLints involved are minor in relation to total To extract from past experience a clearer guide lending, sharp percentage increases registered in to present and future practice, an operations these fields reflect the Bank Group's interest in evaluation unit was established in the Bank dur- broadening the scope of its development assist- ing the year. Its responsibility is to evaluate the ance. Other operational evidence of this included contribution of Bank Group operations to the de- the Group's first loan specifically for a pollution velopment of member countries. A number of control project, and the inclusion of conditions in pilot studies are under way to determine the most loan and credit agreements which prescribe anti- effective methodology. They include a detailed
6 examinationof the Group's experiencein Colom- Innovationsduring the year included two im- bia, and of the benefits expected and actually portant stepsin the field of research.In Spain,the realized from half a dozen power projects in Bank will provide $12.7 million to help finance different countries. the reorganization of agricultural research and developmentactivities for the entire country, in- cluding the establishmentof six researchcenters, The Year'sLending each oriented to a major commodity of national importance.Thiswasthe first loan the BankGroup Agticulture has made primarily for research,in any field. A Bank Group lending for agriculture continued fourth of the project funds will be for technical at the new high level reached in the previous assistance,including the internationalrecruitment fisal yhearagahint ae backdrop of advancingtrecs of researchspecialists and consultantsand 200 fisc-alyear, againsta backdropof advancingtech- oveIrseastraining fellowships for Spanishscientists. nology, shifts in the composition and volume of external finance from other sources,and a broad On the international level, together with the reorientationof governmentpolicies. Not includ- Food and Agriculture Organizationof the United ing the agricultural portion of some multi-pur- Nations (FAO)and the United Nations Develop- poseprojects, financing in this sectortotaled $419 ment Programme(UNDP), the Banktook the ini- million, with 13 Bank loansand 24 IDA credits in tiative in sponsoring a consultative group of 27 countries. interested countries and institutions to advance Discussionby the ExecutiveDirectors of policy agricultural researchof major concern to devel- issuesarising from loan and credit proposals,as oping countries (seepage 33). well as recommendationsof such bodies as the The first participation in World Bank Group PearsonCommission, has helped to focus atten- financing by a church-related organization was tion on the needfor deeperknowledge of agricul- arranged during the fiscal year. "Bread for the tural developmentin all its aspects,including its World," an agencyof the EvangelicalChurch in relationship to such central questions as unem- Germany,agreed to provide $100,000toward an ployment and maldistributionof income; for new IDA commitment of $1.35 million for the first and stronger institutional measuresto apply what phaseof a rural resettlementproject in Senegal. is already known; and for a rising level of capital The participation was approved by the organiza- assistance.The World Bank Group's lending and tion shortly afterthe end of the Bank'sfiscal year. technical assistancereflect these needs. Shifts in policy toward agriculture have been affected by many factors: trends in growth of INDONESIA-Picking tea. Tea and cinchona (quinine) atio and foodoprductin; ingrate of production in Java is to be expanded and modern ized population and food production; rising rates of with the help of a $15 million IDA credit signed unemployment and urbanization; and a stream in June1971. of ecological, social, political, economic and
'J"
7 Bank Loans and IDACredits 1970/71 by Area (Millionsof USdollars) Bank Loans IDA Credits Total Number Amount Number Amount Number Amount Africa Botswana ...... 1 $ 32.00 1 $ 3.00 2 $ 35.00 Cameroon ...... - 1 1.50 1 1.50 Chad,...... - 1 2.20 1 2.20 Congo,Democra ticRepublic...... - - 1 7.00 1 7.00 Congo,People's Republic ...... - - 1 3.50 1 3.50 Dahomey...... - 1 3.50 1 3.50 Ethiopia...... - - 1 9.50 1 9.50 Ghana ...... - - 1 7.10 1 7.10 Guinea ...... 1 9.00 - - 1 9.00 Ivory Coast ...... 3 27.50 - - 3 27.50 Kenya ...... 2 31.30 1 12.60 3 43.90 MalagasyRepublic ...... - - 1 5.00 1 5.00 Malawi ...... - - 1 7.25 1 7.25 Mauritius...... - - - 1 5.20 1 5.20 Morocco... .i ...... 45.00 - - 2 45.00 Niger ... ,.- ...... - - 1 5.70 1 5.70 Nigeria ...... 3 97.20 - - 3 97.20 Senegal ...... - 3 7.05 3 7.05 SierraLeone ...... 1 3.70 1 3.50 2 7.20 Somalia ...... - 1 3.30 1 3.30 Tanzania...... -- .... 1 30.00 2 12.30 3 42.30 Tunisia ...... 2 31.50 1 4.80 3 36.30 Uganda ...... - - 2 11.30 2 11.30 UpperVolta ...... - - 1 6.20 1 6.20 Zambia ...... 1 40.00 - - 1 40.00 17 $ 347.20 24 $121.50 41 $ 468.70 Asia Afghanistan ...... - $ - 1 $ 5.00 1 $ 5.00 China ...... 2 70.00 - - 2 70.00 India ...... - - 6 243.40 6 243.40 Indonesia ...... - - 8 95.90 8 95.90 Iran ...... 4 165.00 - - 4 165.00 Israel ...... 1 20.00 - - 1 20.00 Jordan ...... - 1 6.00 1 6.00 Korea ...... 2 84.50 1 7.00 3 91.50 Malaysia...... 3 54.80 - - 3 54.80 Nepal ...... - - 1 2.50 1 2.50 Pakistan ...... - - 2 48.00 2 48.00 Philippines ...... 2 22.30 - - 2 22.30 Thailand ...... 1 12.50 - - 1 12.50 Yemen,People's Democratic Republic ..... - - 1 1.60 1 1.60 15 $ 429.10 21 $409.40 36 $ 838.50 Europe Cyprus ...... 2 $ 5.40 - $ - 2 $ 5.40 Finland ...... 2 33.00 - - 2 33.00 Greece ...... 2 38.80 - - 2 38.80 Iceland ...... 1 4.10 - - 1 4.10 Ireland...... 2 30.00 - - 2 30.00 Spain ...... 2 102.70 - - 2 102.70 Turkey ...... 5 94.50 2 19.50 7 114.00 Yugoslavia . . ... 3 90.00 - - 3 90.00 19 $ 398.50 2 $ 19.50 21 $ 418.00 Oceania Fiji ...... 1 $ 11.80 - $ - 1 $ 11.80 New Zealand...... 1 16.00 - - 1 16.00 Papuaand NewGuinea ...... 1 23.20 - - 1 23.20 3 $ 51.00 - $ - 3 $ 51.00 Latin America and Caribbean Argentina ...... -- ..... 2 $ 151.50 - $ - 2 $ 151.50 Bolivia...... - - 1 6.80 1 6.80 Brazil.. . 5 160.40 - - 5 160.40 Colombia ...... 5 153.10 - - 5 153.10 DominicanRepublic ...... - - 2 9.00 2 9.00 Ecuador ...... 1 8.00 1 10.00 2 18.00 ElSalvador ...... - - 1 5.60 1 5.60 Guatemala.... +- ...... 1 4.00 - - 1 4.00 Guyana ...... 1 5.40 1 2.20 2 7.60 Honduras...... 1 6.00 - - 1 6.00 Jamaica...... 2 17.20 - - 2 17.20 Mexico ...... 1 75.00 - - 1 75.00 Peru ...... 1 30.00 - - 1 30.00 Trinidadand Tobago ...... 1 3.00 - - 1 3.00 Uruguay...... 2 22.00 - - 2 22.00 Venezuela...... 1 35.00 - - 1 35.00 24 $ 670.60 6 $ 33.60 30 $ 704.20 8TOTALS ...... 78 $1,896.40 53 $584.00 131 $2,480.40 managementproblems generatedby technolog- changing nature of Bank and IDA projects. The ical change. word "project" itself has enlarged its meaning, Since the mid-'60s, when the implications of especially in agriculture. Today it seldom repre- agriculture's lagging performance first became sents merely physicalfacilities as an object of in- generallyclear and the "green revolution" began vestment, whether large or small, but a set of almost simultaneously,governments of manyde- financial, technical and administrative arrange- veloping countries have channeled increasing ments,combined with necessaryconstruction to proportions of their developmentinvestment into achievea set of interrelatedobjectives which pave this sector.The volume will have to continue ris- the way, in turn, for the achievementof others. ing through the latter half of the '70s if the mo- Thus an increasingproportion of the Group's mentum already generated is to be maintained. funds and staff effort devoted to agriculture have To.accomplish this, and at the same time meet been channeledinto comprehensiverural devel- fresh problems spawned by the application of opment projects embracing many sub-sectors new technology, requires a substantial increase such as credit, training and extension services, in external aid for agriculture and a shift in its conservation,forestry, livestock,irrigation, drain- composition. age and flood control, and often cutting across Historically,information availablesuggests, the major sectorallines to include elementsof trans- sectoraccounted for no more than 10% of official port, industry, utilities or education. developmentaid at least until 1968; and perhaps An apt example of this is the Lilongwe project half of this was general assistancein the form of in the central uplands of Malawi, a landlocked commodities, primarily food, to offset lagging country in SoutheasternAfrica, twice the size of farm production. With the advent of the "green Switzerlandwith lessthan half the population but revolution," the need for food aid on a large growing at more than 3% a year. Per capita an- scaleas a generator of development is declining, nual income is about $50. Cashincomes may be though increasedattention to such aid may well near zero in some areaswhere traditional meth- be justified for nutritional purposesand in cases ods of farming prevail and there is little contact of emergency.Now and in the future, the main with the market economy. Principal crops are developmentalrequirement will be external capi- maize, the staple food, groundnuts, tobaccoand tal, both for traditional projects in fields such as vegetables.Potential for increasingyields and in- irrigation, and to supply a wide variety of essen- come is considerable,but the land is eroding and tial imports, including technical assistanceat all productivity is low. Already the surgeof impov- levels. erished rural migrants to the urban centers has Against this background, broad support has begun, with its familiar consequences. been apparent for the Bank Group's expanding An IDA credit of $7 million approved in May role in the agricultural field. There have been will help to finance the secondphase of a project divergent views concerning methods, but una- to halt or mitigate thesetrends by improving both nimity as to purpose: within the Group's inescap- the standardof living and the environmentin an able constraints,both institutional and financial, areaof more than a million acres.The first phase to give the maximumpossible support to govern- hasbeen under wav since1968 with the help of a mentsthat needand requesthelp in solvingprob- $6 million credit. lems associatedwith the agricultural sector.This The project elementsinclude: aerial and cadas- hasnot only resultedin a larger volume of financ- tral surveys demarcating individual holdings of ing, but hasled the BankGroup into new lines of about 10 acres;a voluntary programof land regis- action to help devise and support agricultural tration; establishmentof a "service center" for strategiesin consonancewith other sectors and each20,000 acre unit, including a producemarket, in the light of each country'seconomic and social fertilizer and seed store, and related offices and circumstances. housing; construction of more than 700 miles of Morecomprehensive projects small farm-to-marketroads; 3,000miles of rainfall In terms of volume, financingfor agriculture in diversion channels to halt erosion; nearly 300 the fiscal year ending June30, 1971, rose slightly boreholes with hand pump facilities, providing over the record level of the previous 12 months, potable water within reachof all families,thus re- raisingthe cumulativetotal to $2,348million. The ducing the incidence of water-borne diseases; sectoraccounted for 17% of the year'slarger total tractor-dug ridges to guide farmers in contour- of financing. In the last three yearsthe Bankand plowing; credit on reasonableterms for on-farm IDA have lent almost as much for agriculture as investmentsand the purchaseof improved seeds, in the previous two decades. fertilizers, oxen, implements,steers for fattening, The broad new cast of agricultural develop- and other requirements;development of a large ment policy hasfound practicalexpression in the ranch to provide steers for stall-fattening by
9 BanndIbACreits190/T. Lons b Prpose (Millionso Sdlas Bank IDA Total Agriculture A~fghanistan-irrigation.--- $ 5.00 $ 5.00 Bofva~-crodit-fivestok..-'6.80 6.80 Colomnbia-ladsettlement ..... 8.10 - 8.10 DominicanRepublic-.-credit-livestock ...... - 5.00 5.00 Ecuador-.-credit-4ivestock..- 10.00 10.00 Greece-irrigation..~~~~~ ~ ~~- ~~~~~~~~25.0025.00 t4uatemnla.--ctedit-livestock_ ..... 4.00 - 4.00 Guyana-credit-f-ivestock..- 2.20 2.20 indi-aerial sprayfacilities, trining.- 6.00 6.00 India-reditcrops(AndhraPradesh).- 24.40 24.40 Indi-rdtcos TmlNd)- 35.00 35.00 Indi-.credi-.-rops. .ryan).- 25.00 25.00 Indnsataprdcin-- 15.00 15.00 Indonsi-fsheie.-3.50 3.50 Indoesia-.-irrigationand drainage.- 14.50 . 14.50 Indopesia-high,yieldings5eed producition_...... 7.50 7.50 lsiael-credit-~high'value crops .20.00 ...... O - 20.00 tvory-Coast---~oifpalmprocessing...1.90 - 1.90 IvoryCoast-oil palm and coconut produclotion ..... 5.10 - 5.10 Jamaiacrdt-,livestock andcrops..3.70 - 3.70 Korea-credit--livestock.- ~~~~~~~~~~~~~~~7.007.00 MalagasyRepublic-irrigation.- ...... 5.00 5.00 Malawi-landdevelopment.- ~~~~~~~~~~~~~~~7.257.25 Mauritius-teaproduction.~~ ~~~~~~~~~~~~~-5.20 5.20 Mexico-cedit-livstock~cops~ag o~idstries. 75.00 - 75.00 Nigeria-cocoaproduction.~~~~~ ~~~~~~~~7.20-7.20 Philippines-riceandstorage.~~~~~~14.30 processing - 14.30 Senegal-landsettlement.~~ ~~~~~~~~~~~~-1.35 1.35 Senegal-riceproduction...... - 3.70 3.70 Spain-nationalprogram.~~~~~research ~ ~~- ~~12.7012.70 Tanzania-tobaccoproduction.~~ ~~~~~~~~~~~-9.00 9.00 Turkey-...... -li...t...c- 4.50 4.50 Turkey-credit:-highivalue crops. 10.00 15.00 25.00 Uganrda-tobaccoproductdion...- 4.0 4.00 upperVolta-~cotton production.- 6.20 6.20 Urga-reditlivestock,.4.00 - 40 elucatiort $ 191.0-0 $228.10 $ 419.10 Brazil.$ "..8.40 $ - $ 8.40 Chad~~~~~~~~~~~~~~~~....- 2.20 2.20 Congo,Republic.,.,Peope's I .-...... 3.50 3.50 DoinicianRepuiblic..-4.00 4.0 Ethiopia..- 9.50 9.50 Greece..~~~~~ ~ ~~- ~~~~~~~~~~~~~~13.8013.80 Indonesia..~~ ~~~~4.60 ~ ~~~~~~~~~~~~~~-4.60 Iran..~~~~~ ~ ~~- ~~~~~~~~~~~~~~~19.0019.00 .a.aic ... 13.50 - 13.50 Senegal,...... - 2.00 2.00 Somnia..- 3.30 3.30 Tanzania...... 3.30 3.30 Turkey..~~~~~ ~ ~~ ~~~~~~~~~~~~~~13.5M13.50 Uganda...... - 7.30 7.30 Telecommunictins$ 68.20 $39.70 $ 107.90 Colombia,.....15.00 $ - $ 15.00 India.- ~~~~~ ~ ~~~~~~~~~~~~~~~~~~78.0078.00 Indonesia.-...... 12.80 12.80 Iran,...... 36.00 - 36.00 Malaysia...... 18.70 - 18.70 Venezujela...... 35.00 - 35.00 ElectricPower $ 104.70 $90.80 $ 195.50 BraziL. .- ~W~--~--~~...... $ 70.00 $ - $ 70.0 China. - - III ....--..--- 55.00 -55.00 ElSalvador.-- 5.60 5.60 Ghana...... 7.10 7.10 India., ~ .~,~ . ...- 75.00 75.00 Iran,"60.00 - 60.00 Ireland.~..... 20.00 -20.00 Kenya-...... 23.00 -23.00 Malaysia...... 20.00 - 20.00 Pakistan.~~~~~~~~~~~~~~~~~.... - 23.00 23.00 Papuaand New Guinea ...... 23.20 - 23.20 TanzaniaO.1-~,-,~14 1~-i~~-30.00 -30.00 Turkey.7.00.....T - 7.00 Turkey.~~~~~~~~~~~~~~~~~~~.. 24.00 -24.00 Bank Loansand IDA Credits 1970/71 by Purpose (Millionsof USdollars) Bank IDA Total Uruguay...... $ 18.00. $ - $ 18.00 Zambia ...... 40.00 - 40.00 Transportation $ 390.20 $110.70 $ 500.90 Argentina-roads...... $ 67.50 $ - $ 67.50 Argentina-railways...... _...... ___ ... 84.00 - 84.00 Brazil-port ...... 45.00 - 45.00 Cameroon-port...... - 1.50 1.50 China-railways...... 15.00 - 15.00 Congo,Democratic Republic-river transport ...... _. - 7.00 7.00 Dahomey-roads...... - 3.50 3.50 Fiji-roads...... 11.80 - 11.80 Finland-roads...... 13.00 - 13.00 Guinea-railwayand port ...... 9.00 - 9.00 Honduras-port...... 6.00 - 6.00 Iceland-roads...... 4.10 - 4.10 Indonesia-roads...... - 34.00 34.00 IvoryCoast-roads ...... 20.50 - 20.50 Jordan-roads...... - 6.00 6.00 Kenya-roads...... , - 12.60 12.60 Korea-roads...... 54.50 - 54.50 Malaysia-ports .. 16.10 - 16.10 Nepal-roads...... - 2.50 2.50 NewZealand-railways ...... 16.00 - 16.00 Niger-roads ...... - 5.70 5.70 Peru-roads .. ... , 30.00 - 30.00 Philippines-roads...... 8.00 - 8.00 SierraLeone-roads ...... 3_...... 7....330 3.50 7.20 Spain-railways ...... _...... 90.00 - 90.00 Thailand-port ...... 12.50 - 12.50 Tunisia-gaspipeline ...... __ ...... 7.50 - 7.50 Tunisia-roads...... 24.00 - 24.00 Yemen,People's Democratic Republic-roads ...... - 1.60 1.60 Yugoslavia-roads...... 35.00 - 35.00 Industry $ 573.20 $ 77.90 $ 651.10 Botswana-infrastructurefor copper-nickel mining enterprise ...... $ 32.00 $ - $ 32.00 TechnicalAssistance Indonesia...... $ - $ 4.00 $ 4.00 DevelopmentFinance Companies Colombia...... , ..... $ 40.00 $ - $ 40.00 Ecuador ...... ___ ...... 8.00 - 8.00 Finland ...... 20.00 - 20.00 Iran...... 50.00 - 50.00 Ireland .. , 10.00 - 10.00 Korea...... 30.00 - 30.00 Morocco...... 10.00 - 10.00 Morocco .. . , 35.00 - 35.00 Nigeria ...... 10.00 - 10.00 Turkey ...... 40.00 - 40.00 WaterSupply & SewerageSystems $ 253.00 $ - $ 253.00 Botswana... , , ... $ - $ 3.00 $ 3.00 Brazil-SaoPaulo water supply ...... _...... 22.00 - 22.00 Brazil-SaoPaulo sewerage system (pollution control) ...... 15.00 - 15.00 Colombia-Bogota...... _ 88,00 - 88.00 Colombia-Palmira...... _ 2.00 - 2.00 Cyprus-Nicosia...... 3.50 - 3.50 Cyprus-Famagusta...... - 1.90 - 1.90 Kenya-Nairobi ...... 8.30 8.30 Yugoslavia-multipurposefor communities, irrigation,industry, electric power...... _.... 45.00 - 45.00 Tourism $ 185.70 $ 3.00 $ 188.70 Yugoslavia-resortcomplex near Piran ... - ...... $ 10.00 $ - $ 10.00 Population Trinidadand Tobago ...... $ 3.00 $ - $ 3.00 Tunisia. ... , - 4.80 4.80 General Development $ 3.00 $ 4.80 $ 7.80 Guyana-seadefenses ...... $ 5.40 $ - $ 5.40 Nigeria-rehabilitation...... 80.00 - 80.00 Pakistan-rehabilitation...... - 25.00 25.00 $ 85.40 $ 25.00 $ 110.40 TOTALS.. . $1,896.40 $584.00 $2,480.40 11 project farmers; technical assistance at all levels, made by the Bank Group for agriculture. It will including training for project staff and extension help advance a $193 million project to further workers, and the development of plans for main- accelerate livestock production and agricultural tenance of infrastructure beyond the development development. stage; timber planting on non-agricultural land in The improvement of dairy farming has fre- the project area, which will improve soil and water quently been an element in livestock projects conservation; and provision for the cost of a proj- financed by the Bank and IDA, though the prin- ect evaluation unit. cipal focus has been on the expansion of beef By 1975, the average net income of some 52,000 production. Among nine livestock credit projects families on about 500,000 acres will be more than approved during the year under review, two are $170, judging by experience already gained. By specifically directed to the modernization and 1979, the Government will have recovered its ex- expansion of the dairy industry- in Korea and penditures and there will be a net annual increase Turkey. So is a major segment of a third, to finanrce in the national income of more than $5 million. the second phase of a livestock development pro- More important, the project is expected to have a gram in Ecuador. All will involve adaptations of profound demonstration effect throughout the directed credit systems which characterize Bank region and beyond. This effect will greatly expand and IDA livestock operations. the impact already achieved through two similar With rising incomes and the spread of fast and but smaller projects in other areas, one assisted efficient transport, more countries with suitable by IDA and the other by the Federal Republic of climatic and soil conditions are well placed to en- AGriculturalcredit large their exports and improve domestic food Agriculturalcreditsupistruhtepouinofig-ae Within the rising total of Bank Group lending crops such as fruith anPdvuctibn of high-value for agriculture during the fiscal year, there were crops cas fruit an vegetable We uch shifts in both geographical and sectoral distribu- crops can produce far more income per uit of tion. For the first time in any year, well over half land than staple foods or fibers, their profitable was in funds to provide farmers and rancherswith production requires intensive cultivation and wasimproeds ct faciie Irmrigatn onther the skillful management. So far, few developing coun- improved credit facilities. Irrigation, on the other tries have been able to take full advantage of the hand, which has accounted historically for more trtunityh than 50% of lending for agriculture, represented opportunity. less than 12% in fiscal 1971. In October 1970, the Bank made its first loans Agricultural cooperative credit institutionswere specifically for such high-value crops. It agreed one of the "promising activities" for which the to provide $20 million for a three-year, $50 mil- Pearson Commission recommended increased as- lion lending program in Israel. Principal bor- sistance. In an analysis of this question presented rowers will be cooperative farming enterprises to the Executive Directors, the President pointed which will produce cut flowers, sub-tropical fruits out that a large volume of Bank and IDA funds and off-season vegetables for the European mar- had, in fact, been channeled to farmers through ket. The loan includes funds to improve storage agricultural credit cooperatives of various kinds; and handling facilities for sea and air transport, since 1959, 34 loans and credits totaling $490 mil- and a small sub-project to assure adequate water lion have involved cooperatives directly or in- for irrigation. Of the project's total cost, the Gov- directly. Effective management has been found to ernment, three participating banks and the sub- be a recurring problem. The Bank is exploring the borrowers will provide 20% each. The Bank will possibilities of helping to improve the manage- cover foreign exchange requirements. ment of such institutions and of assisting govern- Late in the fiscal year, the Bank and IDA to- ments in the preparation of agricultural credit gether agreed to help finance a similar project in projects involving the use of cooperatives. Turkey with a loan of $10 million and a credit of Partly for transitory reasons, both the volume $15 million, against total estimated costs of $44 and proportion of agricultural lending to Asia de- million. In this case, the main crops involved will clined, while there were increases for develop- be citrus fruits, grapes, peaches and vegetables. ing countries in Africa, Southern Europe and the In addition to providing credit and technical serv- Western Hemisphere. Some of the drop in Asia's ices to some 2,000 participating farmers and nurs- total resulted from events in Pakistan. erymen, the project will help private companies Eight countries received their first assistance finance the purchase of two ferry ships and 385 from the World Bank Group for agriculture: Do- refrigerated trailers with 100 towing units, and minican Republic, Greece, Guatemala, Israel, build packinghouses, cold storage plants and box Jamaica, Mauritius, Nigeria and Upper Volta. A factories. It also provides funds for citrus research loan of $75 million to Mexico was the largest ever and a comprehensive credit survey.
12 Bank and IDA Lendingby Area (Millions of USdollars and numbersof loans) 2,500 2,500
I I [ lLatin Americaand Caribbean | Europe 704 Asiaand Oceania
2,000 r Africa 30 2,000 2l000 [2~JNumberof Loans
593 28 418 21 1,500 1 1,500
170 9. I l
1,000 310 16 890 1,000
iI[ 828 149 641 34
500I - 500 507
20 4 41
469 LI.~~~394 I
150
1964-68Average 1969-70Average 1971
13 Deeper analysis of the agricultural sector in borrowing countries has become an urgent need miillion);I May 1971-$7.5 million, rices7$2 to support the Bank Group's higher volume of seedsindustry(total cost,$12 million); IDA, June lending and provide requested assistance to gov- 1971-$15 million, rehabilitation, expansionof ernments in working out their strategies for tea and cinchona production, improvement of investment. A fourth major sector review was transportand worker housing,re-equipment and concluded during the year, in Malaysia, and field tea research(total cost, $25 million). work was completed for such reviews in Nigeria ISRAEL:Bank, October 1970-$20 million, and the Democratic Republic of Congo. credit for production, storageand handling,high- Under the Bank-FAO cooperative program, value export crops (total cost,$50 million). FAO staff members participated in 39 of the IVORY COAST: Bank,June 1971-$7 million Bank's agricultural missions during the year and (two loans, $1.9 million and $5.1 million), con- solidation and expansion,oil palm and coconut the Organization sent 86 missions to developing development(total cost,$17.6 million). countries to identify and prepare agricultural JAMAICA:Bank, December 1970-$3.7 mil- projects for the Bank's consideration. Of the lion, cattle,coconut,citrus production (total cost, projects approved in this sector during the 12 $8 million). months period, FAO provided assistance in con- KOREA:IDA, January1971-$7 million, dairy nection with 17: production, processing,marketing, research and Project identification and preparation on behalf demonstrationplanning (total cost, $12.6 million). of governments continued to be the main func- MALAGASYREPUBLIC: IDA, July 1970-$5 tions of the Bank'stions ofown he Bank'peranentpermanent missionsmisions in$8.2in |rnmillion,million). irrigation for rice production (total cost, Eastern and Western Africa, stationed in Nairobi MALAWI:IDA, May1971-$7.25 million, com- and Abidjan; and its Agricultural Development prehensivesmall farm development,credit (total Service, headquartered in Nairobi, provided man- cost,$8.6 million). agement services to member governments in the MAURITIUS: IDA, March 1971-$5.2 million, area on a reimbursable basis (see page 31). smaliholdertea development,credit (total cost, $7 million). AGRICULTUREPROJECTS 1971-$75 AGRIICULTUREM PRJECTSw ~MEXICO:eMhensive livestockBank, May and agriculturalmillion, credit, com- in- AFGHANISTAN:IDA, May 1971-$5 million, cluding agro-industries(total cost,$193 million). irrigation (total cost, $6 million). NIGERIA:Bank, May 1971-$7.2 million, cocoa BOLIVIA: IDA, June 1971-$6.8 million, im- planting, rehabilitation, farm credit, training, provement of livestock production (total cost, studiesfor future development(total cost, $10.4 $11 million), million). COLOMBIA: Bank, May1971-$8.1 Million, PHILIPPINES:Bank, January1971-$14.3 mil- land settlement,imnproved rice and pasturepro- lion, rice processingand storage(total cost,$20.9 duction (total cost, $21.6million). million). DOMINICAN- REPUBLIC:IDA, April 1971-$5 SENEGAL:IDA, May 1971-$1.35 million, rural million, dairy andbeef production (total cost, $9 resettlement,groundnuts and cotton production million). (total cost, $1.8 million); $3.7 million, irrigation, EC:UADOR: IDA, November 970-$10 mil- rice storagefacilities (total cost, $4.8million). lion, dairy and beef production, researchand SPAIN:Bank, May 1971-$12.7 million, con- training, seed production and certification (total I struction and technical assistance,national agri- cost,$19.7 milliorn), cultural research program (total cost, $28.2 GREECE:Bank,juner1971-$25 million, ground- milion). wvaterirrigation (total cost, $50 million). TANZANIA: IDA, October 1970-$9 million, GUATEMALA:Bank, January 1971-$4 Million, expansion,flue-cured tobacco production (total beef production (total cot $7.8 million)| cost,$14.7 million). GUYANA:IDA, November1970-2.2 million, | TURKEY:IDA, February 1971-$4.5 million, beef production (total cost $4.4million). I dairy production, training, studies, demonstra- Ition (total cost, $7.5 million); Bank-IDA blend, INDIA: IDA, October 1970-$6 million, crop- June 1971-$25 million (Bank $10 million, IDk spraying aircraft, training (total cost, $8.8imul- $15 million), production, handling, marketing, lion);- IDA, December 1970--$,24A4 million, shipping of fruits and vegetables(total cost,$44 Andhra Pradeshfarm credit (total cost, $45 rnil- million). lion); tDA, june 1971-$35 million, Tamil Nadu farm credit, tubewells,electric pumps,tractor im- UGANDA:IDA, July 1970-$4 million, tobacco ports (total cost, $62.3million); IDA, June 1971 production, curing barns, marketing facilities -$25 million, Haryanafarm credit, irrigation, (total cost, $7.26million). farm mechanization(total cost,$44.5 million). UPPERVOLTA:IDA, December1970-$6.2mil- INDONESIA:IDA,July 1970-$3.5 rnillion,fish- lion, cotton production (total cost,$9.4 million). eriesexpansion for export (total cost, $43 mil- URUGUAY:Bank, June 1971-$4 million, live- lion); IDA, November 1970-$14.5 million, Java | stock production (total cost,$8.3 million).
14 Education select projects on the basisof a thorough exami- The World BankGroup broadenedits approach nation of the education systemas a whole rather to educationaldevelopment in fiscal 1971,in line than by a priori designated areas of eligibility with new policies approved by the ExecutiveDi- which may not relate to the particular country. rectors in the light of more than eight years of We should continue to emphasizeprojects which, experience in this sector. Lending for education like vocational training, produce trained man- exceeded$100 million for the first time in a single power directly, but we should also consider year. financing other types of projects. .. which would In five Bank loans and nine IDA credits to have important long-term significancefor eco- 14c ive thekvolum ofdneIDuAti rendingto nomic development." Such projects would be 14 countries,the volumeof educational lending "eindt norg hne hc mrv totaled $108 million, a third above the level of "designed to encouragechanges which improve thelprevious two yearsand more than triple the the relevance,efficiency or economy of educa- averagefor the five yearsending with fiscal 1968. tionhsystems."Boththeimainnrecommendaions The Bank lent $68 million, IDA $40 million. The of the Pearson Commission and the President's cumuBanklativtot mincreaseto $42 million. in- proposals for a redefinition of policy are being cumulative total increased to $425 miflion, in- cridot cludin g $213 million in loans and $212 million carried out. in credits. The new policy's meaningin operational terms may be illustrated by projects approved during IDA credits for education were extended to the year for Ethiopiaand Iran,and a loan to Spain seven African countries (Chad, the People'sRe- which was signed on the final day of fiscal 1970. public of Congo, Ethiopia, Senegal, Somalia, These are countries in widely differing circum- Tanzaniaand Uganda), and to the Dominican stances.None is the poorest or richestof the de- Republic and Indonesia.Bank loans were made veloping countries, but each fairly representsa to Brazil, Greece, Iran, Jamaicaand Turkey. Of broad spectrumof developmentneeds, both gen- the 14 borrowers, nine received education loans erally and specifically in the education sector. or credits for the first time: Brazil, the People's The accompanyingtable (see next page) gives a Republic of Congo, the Dominican Republic, crude profile of the three, in selectedstatistics- Greece, Indonesia, Iran, Senegal,Somalia and figureswhich are illustrative only, since compara- Turkey. ble information of this kind for different countries Educationpolicy redefined is seldom either certain or available. The Group's policy on lending for education All three Governmentsare awareof their needs was reviewedand redefined during the year. The and determined to meet them. Only Ethiopiahas original policy, approved by the ExecutiveDirec- had previousexperience with the Bank Group in tors in 1963,called for concentratingthe Group's the education sector, through an IDA credit of attention on vocational and technical education $7.2 million in 1966which has helped to finance and training, and on generalsecondary education. a nationwide construction program to enlarge Other categorieswere to be considered"only in the secondary school system and train more exceptional circumstances." In its report two teachers.When it began, only 1% of children in years ago, the PearsonCommission urged that the secondary school ages were enrolled, and more funds be made available for researchand few of them completed the course.While the en- experimentation in the developing countries rollment ratio has increased,it is still extremely ",with new techniques,including television and low and the number of applicants is far greater programmed learning," and proposed "a more than the systemcan accommodate. systematicanalysis of the entire learning process Under the new IDA credit of $9.5 million, ap- asit5applies to developing countries." proved in March 1971,a much broader approach The Presidentrecommended acceptance of the will be undertakenat a total cost of more than proposals.To help lay the groundwork for such $13 million. The earlier construction programwill an expanded program, he proposed that the be carried forward,with specialemphasis on rural Bank's cooperative agreement with Unesco be areaswhich now have only primary schools. An broadened to include educational planning as a academyof pedagogywill be built, with its own field of inquiry by Unescomissions. This hasbeen teacher training institute; two other such insti- done. tutes will be established,and a fourth expanded. Earlyin fiscal 1971,the Presidenthad submitted Three rural education institutes will be set up to more detailed proposalsto the ExecutiveDirec- provide post-primary education and training in tors, based on experience since the Group first agriculturalproduction for primaryschool leavers, entered the education field in 1962."We should and instruction in agricultural methodsfor adults broaden the scope of projects considered," he based on collaboration between teachers and said, "and we should determine priorities and agricultural extension agents.
15 Ethiopia Iran Spain (1969) (1969) (1968) Population(millions) ...... 25 28 33 GNP per capita...... $63 $295 $770 Percapita public expenditureon education. $1 $10 $16 Ratio of education expenditureto GNP.4.7% 3.9% 3% Primary age children enrolled...... 13% 57% 87% Secondaryage children enrolled.4% 21% 51% Number of universities ...... 2 7 18 Higher educationgraduates per 100,000population ...... 4 23 31 Adult literacy ratio ...... 7% 35% 94% Higher education enrollment in agriculture and industry ...... 18% 9% 20%
Looking to the future, the credit will also finance next decade. The intention of the Government the completion of manpower studies already be- is to change the present complex and rigid educa- ing carried out by the Government, a comprehen- tional system to make it more efficient and re- sive review of the education sector, and further sponsive to the economic and social needs of a technical assistance for agricultural and technical modern, rapidly growing country. In the first education and to upgrade school maintenance stage, general education will be reformed mainly procedures. at the primary and secondary levels. This will be Educationalreforms done through the establishment of basic schools Iran is already in the midst of a program to re- covering the entire compulsory schooling period form primary and secondary education, to im- (ages 6-13), supported by higher education insti- prove and expand the training of teachers, and tutions for teacher training and upgrading, and to increase the output of agricultural and indus- educational research. trial technicians. A new educational structure is Construction aspects of the project include 19 being adopted which will make the entire system basic schools and 20 secondary schools, all de- more relevant to the people's needs and the coun- signed, equipped and staffed to accommodate the try's development. A $40 million program assisted restructured educational system and to carry on by a Bank loan of $19 million will help to carry on demonstration and experimentation programs. In this program, and at the same time to broaden addition,eight institutes of education will be built, it. Twelve experimental primary and "guidance designed to meet nearly two thirds of the coun- cycle" schools, providing an extended primary try's needs for training and upgrading teachers. course with guidance counseling, will be con- Perhaps most important, technical assistance structed in accordance with new building designs will be provided for curriculum development, adapted to the reformed curricula. They will dem- programming the reform plans, establishing onstrate new organization patterns and will offer norms and standards, training education planners, practical training in industrial skills, commerce administrators and supervisors, and assisting in and home economics in addition to academic reorganization of the Education Ministry. Using subjects. Galicia as a model, the project will demonstrate Four new teacher training colleges will be built the implications of carrying out the reform at the and the faculties of education at four universities regional level. Bank funds will also equip a Na- will be expanded. The project includes funds for tional Center for Educational Research in Madrid, six vocational training centers and the expansion which is being set up with assistancefrom Unesco and equipment of six schools for agricultural tech- and the United Nations Development Programrme. nicians. Two new agricultural schools will be There were noteworthy special features in a established in the southwestern and Caspian Sea number of other education loans and credits ap- regions, especially designed to provide instruction proved during the year. An IDA project in Tan- relevant to the natural characteristics of those zania provides for agricultural institutes to train areas. All of the agricultural schools will stress extension service officers, and rural training cen- practical subjects. ters which will give short, practical courses for The project in Spain, involving a Bank loan of about 25,000 farmers per year. In Indonesia, five $12 million and total costs of about $24 million, is technical training centers are to be built and helping to support the first phase of a funda- equipped with workshop and laboratory facilities. mental reform of the educational system over the Each will draw students from two to four existing
16 senior technical secondaryschools in major cen- and managementeducation. It will also broaden ters of industrial employment. The project also the useof new instruction media, such as televi- provides funds to train about 330 teachersto staff sion, and increasedomestic production of scien- the centers. tific equipment. A managementtraining institute One of the greatestand most neglectedneeds and six adult training centers will be built and is for non-formal training of adults, especially equipped. Equipment will be provided for 30 farmers. Several of the year's projects, such as schoolsfor technicians,12 practicaltrade schools, those in Ethiopia and Tanzania, are providing a technical teacher training college, a science funds for this purposeon a limited scale.Another equipment production center, and an educational example is an IDA-supported project in Somalia, film, radio and television center. In addition, the which includes provision for mobile agricultural project includesfunds for foreign fellowshipsand training units. technical assistancein developingcurricula, intro- While some of the needsand opportunities for ducing new teaching methods and modernizing this type of training are obvious and reasonably equipment production. satisfactorytechniques are readily available, far Both Unescoand FAO have continued to assist too little is known about the problem or the best with lending operations in the educationalfield meansof dealing with it. Many public and private under their cooperative agreements with the agencieshave engaged in suchwork, but no com- Bank,while help hasbeen provided in connection prehensiveevaluation of their experienceis avail- with specific projects by the UNDP and various able.To help fill this gap,and hopefully to provide bilateral agencies. Twelve of the projects ap- better guidance for future operations, the Bank proved during the year were identified or pre- has arrangedfor a study to evaluate schemesof pared with the help of Unesco,and Unescostaff non-formal education, focusing especially on members took part in 19 Bank missionsfor the thosein rural areas. A loan of $13.5million to Turkey illustratesan- other aspect of the Bank Group's broader ap- 11,000MALAYSIA-Usingnew stucdent modernplaces are visualbeing teachingprovided aids. in Nearly proach to the educationalneeds of its members. Malaysianschools with the help of an IDA credit of The project is designedto increasethe availability $8.8mnillion. Most are in vocational,technical and and improve the quality of vocational, technical agriculturalschools.
21
17 preliminary identification of education projects. building of effective institutions can be central to FAO staff participated in 12 missions concerned the whole process of growth. with education projects related to agriculture. This applies with special force to the infrastruc- ture -chiefly transportation, power and other
- ~ ~ public utilities-which is essential to the estab- lishment of modern industry and the expansion of agriculture beyond the subsistence level. Together 4i L they claim a high proportion of scarce resources. Consequently it is a matter of strategic importance X g l that resources be allocated in accordance with sound developmental priorities, and that the planning, construction and operation of projects in these sectors be as efficient as possible. This is an area in which the World Bank Group has had its most extensive experience, and in which its contribution to development through technical assistance has been most pronounced. There are two main reasons: the tie between Bank Group finance and technical assistance,and tne exceptional degree of continuity that has characterized much of the Group's lending, es- pecially in transportation and electric power. (For a review of Bank Group technical assistanceactiv- ities, see page 29.) Bank Group financing has been closely related to the acceptance and effective use of technical advice and assistance, both on general policy questions and in matters of organization, admin- istration and finance, as well as on the technical aspects of projects. In the case of transportation and public utilities, technical assistance in helping to build efficient institutions may be especiaell important because of the strategic relationship of these sectors to others, as well as because of the share of public resources they command. Bene- ficial results from such assistance, however, do not flow automatically from conditions attached pole oto finance for projects, nor can they be assured it merely because advice has been requested and it given. Rather, they are often a function or con- tinuity in operations, making possible the evolu- tion at the staff level of a genuinely common effort by lender and borrower together. Relation to other issues Especially where policy changes or institutional refoims are necessary, a close and confident rela- tionship can be crucial to the effectiveness of technical assistanceand the related projects. This is especially evident in many countries where the at . ~Bankand IDA have helped to finance a series of projects in power or transportation. In some cases, these relationships have continued with Public Services ~~~~~~~littleinterruption over long periods, as in Colom- Public Services ~~~~~biawhere the Group has financed a continuing Development depends as much upon the cali- series of power projects to help meet the coun- her of institutions responsible for projects and try's growing needs for energy. programs as upon the appropriateness of general The importance of such continuity can be seen policies or the adequacy of finance. Thus the most clearly, perhaps, by comparison with situa-
18 tions where it has not yet been so well estab- nations,in projectslarge and small,tailored to the lished, as in the Group's current efforts to expand needsof countries in virtually all stagesof growth. its help to membersin the fields of telecommuni- As it hasfor the last three years,transportation cations and water supply (see below, pages24 in all its forms accounted in fiscal 1971 for the and 23). largestsingle shareof Bank and IDA finance-21 Becauseof the volume of resourcesdevoted to Bank loans of $573 million and 10 IDA credits of thesesectors and the close dependenceof others $78 million, for a total of $651 million. Of the on ,their efficiency, many of the basic issuesen- total, $98.5million wasfor projectsin Africa,$178 gaging the Executive Directors have important million in Asia and Oceania,$142 million in Eu- relevanceto transportation and public utilities. rope and $232.5 million in the Western Hemi- One is unemployment, which poses difficult sphere.Within the transportationsector, the share questions: to what degree is it feasible to use of Bank Group lending for road construction and labor-intensiveroad construction, operating and maintenancehas increasedsteadily to well over maintenancemethods, for example,without self- half. The proportion for railways has declined, defeating sacrifice of project benefits, including amountingto less than a third in fiscal 1971.Most the generationof employment?This is a pressing of the balance is accounted for by loans and problem that increasingly concerns the World credits for ports and inland waterways. Bank Group as unemployment continues to rise Institutionalimprovement on the wave of population growth in developing The sector aboundswith illustrationsof a point countries. The dilemma is raised most frequently stressedby the PearsonCommission, that techni- in connectionwith road construction and mainte- cal assistancecan be most effective when it ac- nance projects. It is hoped that a major study of companiesfinance for priority purposeswith clear construction methods, now being carried out by objectives,as well as the Bank'sbelief that conti- teamsof consultantsemployed by the Bank,may nuity in both financial and technical assistanceis help to illuminate it more clearly. Also a large- most likely to result in the evolution of well- scale study in EasternAfrica of different road managedinstitutions. design standards, niethods of quantifying their In Ethiopia, for example,feasibility studies are relative benefits, and possibilitiesof substitution now under way on 14 roads in preparation for between labor and capital in construction, may specificprojects to be carriedout aspart of a con- prove to have an important bearing on the prob- tinuing program, portions of which have been lem. The study is already being carried out by the financed by a seriesof Bankloans and IDA credits. RoadResearch Laboratory of the United Kingdom In earlier years such work would have required in cooperation with the Bank.A similar study is the servicesof foreign consultants.Today both the under discussionfor WesternAfrica. feasibility studiesand detailedengineering are be- lt is clear that power, gas and water supply, ing done by Ethiopian personnel of the Imperial transportationand communicationsare intimately Highway Authority (IHA). The IHA was estab- involved in issuesarising from acceleratedurbani- lished as a condition of the Bank's first highway zation. What is cause,and what effect?Can better loan to Ethiopia, and its organization, manage- design,planning and phasingof all theseessential ment and technical capabilities have improved services,and perhapsnew fiscal, pricing or other steadily with the help of consultantsarranged for regulating devices,help to slow if not reversethe by the Bank in connection with successiveloans flood of people into overcrowdedcities, or miti- and credits. gate its consequences?Such questions are inter- In May 1971, the Bank made its first loan to twLned with the population and employment Brazilfor port development,providing $45 million problems, the slow progress of agriculture and to help financethe constructionof maizeand con- lack of rural amenities, and the compulsion of tainer handling facilities at the Port of Santosas modernizingsocieties to cluster.Answers are hard part of a major five-yearinvestment program. Five to lind, but the searchis on. other loans havebeen madeto Brazil in the trans- portation field since 1952, totaling $154 million. Transportation The latest included funds for the servicesof con- At one end of the developmentspectrum, Bank sultants to help Brazil reorganize its entire port Group lending for transportation in fiscal 1971 sector,including the NationalDepartment of Ports will help to build suspensionbridges on porter and Navigation. trails in Nepal; near the other, it will help to ad- In Argentina, the Bank made its first loan for vance programscosting $500 million to rehabili- railwaysand its third for highway development.A tate Argentina'srailways and improve and extend generalreorganization and rehabilitation program its highway network; along the way, it will pro- for the railwaysbegan four yearsago and is to be vide technical and financial help in many combi- pressedto completion over the next five yearsat 19 SOMALIA-On the Mogadiscio-Baidoa Road. IDA out with bilateral assistance,but coordination and credits of $8.5 million have helped support a broad better organization are required. program of road construction and maintenance and The Bank Group's project, assisted by an IDA feasibilitystudies in Somalia. credit of $2.5 million, will help to accomplish this, combining technical assistance with finance. a total cost of about $840 million. The Bank's Physical elements of the project involve the con- willingness to lend $84 million toward a two-year struction of five pedestrian bridges to carry porter segment of this program, costing $368 million, traffic on hill trails, which comprise an important was related to the Government's determination to part of the transport network; the replacement of carry out far-reaching institutional changes which five understrength road bridges; and the estab- should help to make the system financially viable lishment of a five-year road maintenance program and improve service at the same time. A new cor- for three key areas, including the provision of porate statute gives the railways more autonomy, equipment and workshop facilities. and substantial improvements in operations and A far more comprehensive road maintenance maintenance have resulted in better financial improvement program is to be undertaken in performance. Kenya, involving the entire national road system. A second loan of $67.5 million to Argentina, This project helps to illustrate two points: the made simultaneously, will help to finance the con- high priority assigned by the Bank to proper main- struction and improvement of about 700 miles of tenance, which has been a continuing preoccupa- highways and carry out feasibility and engineering tion; and the Bank's increasingly common practice studies on another 2,200 miles for future develop- of including in projects the necessary funds for ment. In this field also, planning, construction and technical assistance to study major problems of maintenance activities have been considerably the sector, train personnel, improve related insti- improved. tutions or pave the way for future operations, T'he project in Nepal combines finance for con- whether financed by the country itself, the Bank struction with technical assistance to improve Group or other lenders. administration and road maintenance. Nepal is an The project entails an IDA credit of $12.6 mil- extremely poor country that presses up the south- lion and Government expenditures of nearly $40 ern slope of the world's highest mountains be- million spread over some five years. it had .its tween India and Tibet. More than 80% of the 11 genesis in a detailed study of the road mainte- or 12 million Nepalese live by small-scale agricul- nance problem which was provided for in a Bank- ture, producing two thirds of the country's total financed highway project two years ago. It is output; the other third comes from cottage in- expected to result in the reorganization of respon- dustries, construction and trade. Per capita income sible Government agencies, strengthening both is among the world's lowest, and production has field and headquarters operations. Funds are pro- been rising barely fast enough to keep pace with vided to help in filling key posts with foreign population growth. The primary need is for the experts and to train Kenyans to replace them. A integration of small, isolated valley economies, staffing and training program will be built for for which a prerequisite is improvement of the maintenance personnel, and equipment will be transport system.A basis for this was provided in provided to carry out a four-year program to in- 1965 in the form of a detailed five-year transport prove some 12,000miles of roads. program resulting from a Bank-financedstudy. A considerableamount of Bank-administered Various parts of this program have been carried technical assistancein the transportation field is 20 financed by the United Nations Development Programme (UNDP). In fiscal 1971, work began FINLAND:Bank, February1971-$13 million, or was completed on eight transportation studies expresswayconstruction (total cost, $33.8 million). for which the Bank has been the executing agency GUINEA: Bank, June 1971-$9 million, addi- under UNDP commitments totaling nearly $5 tional port and railway infrastructurefor expan- sion of bauxitemining project (total cost, $12.9 million. Meanwhile, nine studies for which about million). $5 million was allocated in the previous fiscal year HONDURAS:Bank, June 1971-$6 million, wore still in progress. Many of these include feasi- new port near SanLorenzo, expansion of Puerto bility studies which may lead to future lending by Cortes (total cost, $9.8 million). the Bank or IDA; others involve studies of organi- ICELAND:Bank, October 1970-$4.1 million, zation and management problems or the provi- highwaysurfacing (total cost, $7.7 million). INDONESIA:IDA, June 1971-$34 million, sion of technical assistance in the administration Sumatrahighway improvement, regional devel- of transport agencies. opment study, engineering for additional high- Bolivia and the Democratic Republic of Congo ways, feeder roads (total cost, $49 million). provide useful examples. A transport survey of IVORY COAST:Bank, June 1971-$20.5 mil- Bolivia which was financed by the UNDP is now lion, highway construction, engineering (total cost, $35.5 million). being followed up by a team of 11 consultants JORDAN:IDA, June 1971-$6 million, high- who are helping the Bolivian National Railways way construction, maintenance,consulting serv- improve its management and operating methods. ices, urban transport study, Amman (total cost, In the Congo, an IDA credit of $7 million, ap- $8.7million). proved in May 1971, will help to improve river I KENYA:IDA, December 1970-$12.6 million, national road maintenanceprogram (total cost, transport facilities while consultants assist the $18.1million). Government in reorganizing the public agencies KOREA:Bank, June 1971-$54.5 million, road concerned and training Congolese personnel. construction,feasibilitystudies,engineering,pilot During the year, the Bank Group gave its first maintenanceprogram (totalcost, $102.5 million). assistance to the People's Democratic Republic of MALAYSIA:Bank, June 1971-$16.1 million, Yemen, a new member of IDA. It was a credit for tmo nec al arsistancabahe (total cost, $22 million). technical assistance which will help to prepare NEPAL:IDA, November 1970-$2.5 million, the way for a systematic approach to development road and porter trail improvements,maintenance of the highway system and relieve the Republic (total cost,$3.4 million). of its almost exclusive reliance on economic ac- NEW ZEALAND:Bank, February1971 -$16 tivity centered about the port of Aden. Other million, railway rolling stock, equipment (total countries receiving loans or credits for the first cost,NIGER: $87.8IDA, million). January1971-$5.7 millioni, road time in the transportation sector were Dahomey, improvement(total cost,$8 million). Fiji, Iceland, Jordan, Nepal and Sierra Leone. PERU: Bank, September1970-$30 million, post-earthquakeroad construction (total cost, $41.8million). TRANSPORTATION PROJECTS I PHILIPPINES:Bank, April 1971-$8 million, Mindanao road improvement,feasibility studies ARGENTINA:Bank, March 1971-$84 million, (total cost, $15.8million). railway rehabilitation (total cost, $368 million); , SIERRALEONE: Bank-IDA blend, October1970 $67.5 million, highway construction, feasibility -$7.2 million ($3.7Bank, $3.5 IDA), Bo-Kenema studies,engineering (total cost, $150million). road construction(total cost,$10.4 million). BRAZIL:Bank, May 1971-$45 million, Santos SPAIN: Bank,June 1971-$90 million, railway W,portimprovements (total cost, $78.5million). improvements(total cost,$519 million). CAMEROON:IDA, December1970-$1.5 mil- THAILAND: Bank, July 1970-$12.5 million, lion, Douala port improvements(total cost, $2.8 Bangkokport improvement (total cost, $21 mil- million). lion). CHINA: Bank,May 1971-$15 million, railway TUNISIA: Bank, January1971-$7.5 million, improvements(total cost, $42 million). i joint financing with Kuwait, 185-mile gas pipe- CONGO (DR): IDA, May 1971-$7 million line for power (total cost, $13.6 million); Bank, restorationand improvement,river transport sys- May 1971-$24 million, highway improvements tem and fleet, technical assistance(total cost,$13 (total cost, $42.2million). million). YEMEN(PDR): IDA, April 1971-$1.6 million, DAHOMEY: IDA, September1970-$3.5 mil- | highway engineeringstudy, construction equip- lion, road maintenanceprogram (total cost, $4.1 I ment (total cost, $2.7million). million). YUGOSLAVIA:Bank, June 1971-$35 million, FIJI: Bank,June 1971-$11.8 million, highway highway construction, engineering and labora- construction, engineering (total cost, $16.6mil- tory equipment, consulting servicesfor highway lion), planningand maintenance (total cost, $88 million).
21 ElectricPower... Eletri P.weT . to ...... anticipate and keep abreast of rising demand. Institutional efficiency in the power sector is It resulted from a study of power needs in South especially critical for development because of the Brazil which was completed in 1969 by the World nature of the industry. Bank, acting as executing agency for the United Capital costs are high. Foreign exchange re- Nations Development Programme (UNDP). The quirements are heavy; for hydroelectric plants, borrower is an autonomous subsidiary of the the import component is typically 50%, for ther- government owned company responsible for de- mal installations it is more likely to be 75% or velopment of federally owned power projects.- more. The lead time for planning and construction Certain aspects of a loan made in December is long, as much as eight years for hydroelectric 1970 to Tanzania were especially noteworthy. The schemes. For any given service area, growth of Bank joined with Sweden to help finance the larg- demand over such periods is highly uncertain. est power project Tanzania has ever undertakenl Thus heavy costs are incurred when either too which will meet the rapidly growing need for much or too little demand for power is antici- electricity in the coastal region where most indus- pated and provided for. If too much, scarce funds trial and commercial activity is concentrated. The will be diverted from more important purposes; Banks loan, of $30 million, was accompanied if too little, the growth of productivity, and there- by a $12 million 50-year, interest-free credit by fore of the resource base itself, will be retarded. Sweden. The Swedish terms, identical to those of Helping its member countries to avoid these IDA, will reduce the Government's overall burden costs and free resources for their fullest use in of service charges In a similar joint operation, the development has been an important objective of Bank and Sweden agreed to provide $23 million the World Bank Group in its power operations for and $6 million respectively for a power transmis- more than two decades. Through June 30, 1971, an projection renya the Bank and IDA had applied 28% of all their sion project in Kenya. development financing to this sector, a total of $5,284 million. In the latest fiscal year, their lend- ELECTRICPOWER PROJECTS ing for power totaled $501 million: 12 Bank loans BRAZIL: Bank,March 1971-$70 million, 700 amounting to $390 million and four IDA credits MW hydroelectric plant, transmissionfacilities totaling $111 million. This was the second largest (total cost, $152.3million). volume of such lending in their history, exceeded CHINA^ Bank, April 1971-$55 million, 500 only in the previous fiscal year. MW reserveunit (total cost, $73.2million). Nowhere have the benefits of project-related EL SALVADOR:IDA, December 1970-$5.6 technical assistance been more evident than in million, expansion, transmissionfacilities (total this sector. This is due primarily, perhaps, to the Cost Amillion). j7 GHANA: IDA, June 1971--$7.1 million, im- attributes of the industry described above, which provement and expansion, distribution system make it a natural vehicle for the transfer of neces- (total cost,$14.5 million). sary capital resources over a long period. The . INDIA: IDA, April 1971-$75 million, con- requirement of heavy and repeated investments struction, 2, 00 miles of transmissionlines (total argues strongly for the need to assure that man- cost, $750 million). agement is competent and has authority appro- IRAAN-Nank,October 1970-$60 million, trans- priate to its responsibility; that rate structures and training (total cost,$93 milTion). government policies enhance, rather than dimin- IRingAD, Bank,March 1971-$20 million,250 ish, the system's ability to discharge its function MW generatingunit (total cost,$28 million). efficiently; that organization, administration and KENYA-Bank, June 1971-$23 rnillion, joint accounting procedures are effective; that demand fnancing with Sweden, 60 MW unit, 65 mile will be properly assessedand expansion systemati- transmissionline (total cost, $37.5million). cally designed to meet it; and that future invest- MALAYSIA;Bank, July 1970-$20 million, ments will be capably planned and adequately three 120MW generatingunits (total cost, $58.9, provided for. provided for. | ~~~~~~~~~~~millon),PAKTAN: IDA, August 1970-$23 million, The Brazilianexample West Pakistan transmissionfacilities (total cost, Brazil offers an example of continuing close re- $40 million). lationships between Bank and country staffs in the PAPUAAND NEW GUINEA: Bank,April 1971 power sector. In March 1971, the Bank made a loan (Australia, guarantor)-$23.2 million, 45 MW of $70 million to help finance a large hydroelectric hydroelectric power station (total cost, $33.9 plant and transmission facilities at Salto Osorio on :^ TANZANIA: Bank, December 1970-$30 mil- the Iguacu River. The project is the latest in a lion, joint financing with Sweden,100 MW hy- virtually unbroken series on which Brazilian and droelectric power unit (total cost, $54 million). Bank staff have worked, in a continuing program l
22 tries results largely from a vicious circle of in- TUNISIA: Bank,January 1971-(See Transpor- adequate municipal resources and a general tation Projects,gas pipeline). reluctance to charge consumers a price that fully TURKEY:Bank, June1971-$24 million, expan- reflects costs. Especially at a time when the cost sion of generating capacity, consolidation of of producing additional supplies is steadily rising, power grid (total cost, $65 million); $7 million, this raises a severe impediment to the rational power generationand transmission,staff training (total cost,$10 million). development of the sector. Consequently, the URUGUAY:Bank, November 1970-$18 mil- Bank Group places great emphasis upon financial lion, 100 MW additional generating capacity reform of water and sewerage undertakings, in- (total cost, $23 million). sisting that they be reasonably free of political ZAMBIA: Bank, Juty 1970-$40 million, 600 interference and have reasonable budgetary con- .MW power station at KaribaDam (total cost,$57 trol over the services they provide. In practice, million). this normally means that the rates charged should be adequate to cover operating and financial costs, and to build reserves which will meet at Water Supply least part of the cost of continuing expansion. The Bank and IDA lent more for the improve- A major reason why the Bank Group has tried ment and extension of water and sewerage sys- to encourage the development of this sector is tems in fiscal 1971 than in all their previous that its benefits are so pervasive. It is generally history, $189 million. Even the cumulative total accepted that the financial returns accruing to of $329 million, however, has been a mere trickle water and sewerage authorities considerably un- in relation to the unmet need for investment to derstate the true benefits to the community, by meet the most modest requirements. no means all of which are readily apparent or The inadequacy of municipal water and sewer- easily quantifiable. Environmental improvement, age facilities in cities throughout the developing a valuable end in itself, can also result in addi- world has become increasingly acute under the tional financial benefits by improving the com- weight of population growth and rural to urban munity's productive capacity through raising or migration. The World Health Organization (WHO) safeguarding the level of public health. An ex- estimates that about half the urban population of ample of this is a project for river pollution con- developing countries has no public water service trol in Sao Paulo, Brazil, for which the Bank agreed and three quarters lack piped sewer facilities. in fiscal 1971 to provide $37 million. Only a fourth have water for drinking and hygiene (See page 31 for an account of a cooperative supplied to their homes or nearby courtyards by agreement under which the World Health Organi- public systems. Simply to provide minimal house- zation will assist the Bank in the identification hold service to two fifths and assurethat all would and preparation of water supply and sewerage at least have accessto public standpipes and toilet projects.) facilities would require investments on the order Botswana,Colombia, Yugoslavia of $2 billion a year for 10 years. During fiscal year 1971, the Bank Group helped The problems of this sector seem at first glance to finance water supply projects in six countries to be almost insurmountable, but some hope can with eight Bank loans of $186 million and one be derived from the experience of past Bank and IDA credit of $3 million. The IDA credit will pro- IDA loans for water projects. Without exception, vide facilities in Botswana to serve both Gaborone, when local resources have been combined with the capital city, and Lobatse, where the country's external assistance and sound utility management principal export industry, livestock slaughtering, practices have been adopted, these projects have was threatened with closure because of water demonstrated that dramatic improvements are shortage. A loan to Colombia of $88 million was possible. the second for improvements and extensions of the approach of the Bank Group, therefore, is the water supply system of Bogota, and the largest twofold: on the one hand to provide financial ever made by the Bank Group in this sector. In assistancefor project development; on the other, conjunction with sewerage, drainage and pol- to stimulate improvement in organization, engi- lution control works being carried out by the neering, management, and financial practices. In borrower, the project will make an important the process the Bank has often been able to help contribution to orderly urban development of the realize considerable savings by calling attention Bogota metropolitan area. This is particularly im- to design and analytical techniques which permit portant because of the city's extremely rapid improvements in project design and selection. growth: population is expected to increase from The huge backlog of needed investment in 2.5 million to 5 million by 1980, and possibly to water and sewerage systems in developing coun- more than 10 million by 2000.
23 One loan approved during the year, involving developing countries facilities are grossly inade- a Bank commitment of $45 million, was for a quate to meet the growing needsof trade, agri- multi-purpose project in Yugoslavia to provide culture, industry and government. water for a wide variety of uses:drinking and hy- This has been evident in Iran, for example, giene, industry,agriculture and power generation. where a $36 million loan made last Novemberwill It will help to finance the $93 million first phase help to more than double the number of tele- of a long-term plan to develop the lbar and phone connections and expand both telex and Lepenacriver basinsin the AutonomousProvince telegraphservices. The project will cost a total of of Kosovo. about $150 million. It will complement a large expansionof long distancefacilities already un- der way to integrate the different parts of the WATERSUPPLY, SEWERAGE PROJECTS country. At the time the project was appraised, there was a two-year delay in providing service, BOTSWANA:IDA, February1971-$3 million, adaleitn aiiiswr evl vrodd water pumping, treatment facilities (total cost, and all existing facilities were heavily overloaded. $3.3 million). The position is similar in India, where an IDA BRAZIL: Bank, May 1971-$37 million (two credit of $78 million made in fiscal 1971 will help loans, $22 million and $15 million), Sao Paulo to finance expansion of the telephone system and water supply and pollution control (total cost, improve the quality of long distance services. $141.3million). Despite this effort the waiting list for connections COLOMBIA: Bank, May 1971-$88 million, Despited th encrt,te wa i in lis onnecins second phase, Bogota water supply expansion Is expected to icrease to a millon by the end (total cost, $103.7 million); $2 million, Palmira of the program in 1974. water supply, seweragefacilities (total cost, $3.8 Another example is found in Indonesia, where million). an IDA credit was approved in luly 1970 to assist CYPRUS:Bank, March 1971-$3.5 million, part of a five-year expansion program drawn up Nicosia seweragefacilities (total cost, $6.8 mil- with the help of a technical mission provided by lion); $1.9 million, Famagustasewerage and drainagefacilities (total cost,$3.2 million). Australia. Good telecommunications facilities are KENYA:Bank, November 1970-$8.3 million, especially important to Indonesia's trade and de- Nairobi pumping station, water treatment plant, velopment because of its geography: the archi- reservoir(total cost, $12.1million). pelago it occupies embraces more than 6,000 YUGOSLAVIA: Bank,June 1971-$45 million, islands stretching in a chain some 3,000 miles multi-purposeproject to supply water for indus- long. Existing telecommunications facilities were try, agriculture, communitiesand power genera- wholly inadequate and costly to operate, and tion Itotal cost,$93.3 mfillion). hlymdqaeadcsl ooeae n tion$93.3 (total million). cost, there were serious deficiencies in management and control. The Government's program is de- signed to help overcome these and other short- Telecommunications comings. Considerable experience in financing telecom- I munications was gained in the two decades from TELECOMMUNICATIONS PRO)ECTS 1949, when the Bank made its first loan in this C I COLOMBIA: Bank, May 1971-$15million, field to Brazil as part of a power project. A more trunk switchingunits, local exchangeequipment concerted effort Is now under way, however, to , (total cost, $32.4million). assessthe requirements of member countries in INDIA: IDA, April 1971-$78 million, part of this sector in relation to their total development five-year program for expansionof local tele- needs and priorities. Lending operations to im- phone exchanges(total costof five-yearprogram, prove communications essential to development $652million). have been expanding steadily. INDONESIA:IDA, July 1970-$12.8 million, naveriengfiscal 1971,four Beankloans and twoIDAinter-island microwavesystem (total cost, $22.6 During fiscal 1971, four Bankloans and two IDA , million). credits approved for telecommunications projects IRAN: Bank, November 1970-$36 million, totaled $196 million: $105 million from the Bank expansion,Tehran exchangesystem (total cost, i and $91 million from IDA. The year's lending $149.2million). compared with $219 million for this purpose for MALAYSIA: Bank, June 1971-$18.7 million, the 20 years through 1968 and an average of $82 improvementand extension,local, long distance, million for fiscal 1969 and 1970. internationaltelecommunications (total cost,$94 Rapid technological advances have opened the I million).VENEZUELA:Bank, June 1971-$35 million, way for new types of telecommunications service, general expansion program (total cost, $315 and for the reduction of both capital and operat- I million). ing costs.Demand for serviceis high, but in most __ 24 Bankand IDA Lendingby Purpose' (Millionsof US dollars)
2,500 - 2,500
2,000 2,000 , ° ~~~~~~~~~~~~~~~~~Industry--_2,0
1,500 s___ _ - 1,500 PublicUtilities
90 / ~~~~~~~~~~~~~~~~~~~~~651 ,o00= 12 568 - 1,000
Transportation
Education 500 . 36281 108 500 131~~~~~~~~~~9 419 J1_ _ - -~ --T390AgricultureI 11241I 0 1 I 0 1964-68 1969-70 1971 Average Average 'Miscellaneous includesindustrial imports credits and other non-projectlending, and loansand credits for population, tourism,enginearing and projectpreparation. Loans and creditsto developmentfinance companies are includedunder industry,
Industry information on IFC operations, see the Corpora- In the provision of finance for industry in de- tion's separate Annual Report.) veloping countries, both directly and through A number of industrial projects intended for development finance companies (DFCs) and other direct financing by the Bank or IDA were nearing intermediaries, the Bank Group's role has been the final stages of appraisal or negotiation as the considerable. Such financing has accounted for fiscal year ended. One was approved by the Ex- about 15% of all development loans, credits and ecutive Directors. This is a multi-purpose project investments by the Bank, IDA and IFC, or $3,132 in Botswana to provide infrastructure in connec- million through June 30, 1971. This does not in- tion with a large copper and nickel mining ven- clude the industrial component in loans and ture. A Bank loan of $32 million will help to credits for general development program pur- finance a $60 million project for power genera- poses, in agriculture projects for crop processing tion and transmission, water supply, road and rail industries, or in some multi-purpose projects for transport, and to construct a township at Pikwe, which other sectors are the main beneficiaries. including a health center. During the fiscal year under review, the Group's Within the sum of lending for industry, support financing for industry totaled $386 million in 22 to development finance companies accounts for countries: 11 Bank loans of $285 million and 24 the largest and fastest-growing segment, more IFC investments totaling $101 million. (For full than two fifths of the all-time total and two thirds
25 in fiscal 1971. In loans, credits and equity invest- chinery, procedures and business outlook re- ments, the Group provided $264 million during quired to create or expand the capital market. the year to 18 such companies to finance ventures The World Bank Group has helped to organize in 12 countries. This represented an increase of 15 of the companies to which it has provided more than a fifth over the previous year and was finance, and to reorganize another six. It has more than 18% of the cumulative total of $1,420 helped to recruit key officials and train many million. The year's financing included $253 mil- more, both through the Economic Development lion in Bank loans, while IFC provided $10 million Institute (see page 31) and by means of special in loan funds and invested $700,000 in equity. programs. IFC is represented on the Boards of 17. Generally speaking, development finance com- DFCs obtain their funds from many private and panies assisted by the Bank Group operate in the public sources, both domestic and foreign. The small to medium range of industrial and commer- proportion coming from the World Bank Grodp cial projects which the Group helps to finance, varies widely, averaging about 24% and rising to providing essentially the same services domesti- the neighborhood of 60%, depending on the cir- cally that IFC supplies internationally. cumstances. In some cases,Bank Group participa- The Bank has been heavily involved in promot- tion has been a key factor in helping DFCs obtain ing, financing and giving technical assistance to adequate funds from other sources. DFCs assisted institutions of this kind since 1950. These financial by the Bank Group have made loans, equity in- intermediaries have made an appreciable contri- vestments and other commitments for industrial bution to economic development. They have and commercial ventures totaling upwards of helped to change attitudes in the business com- $4,500 million. munity, and to introduce new ideas concerning The range of Bank Group involvement in assist- project formulation and management. Some DFCs ing the growth of development finance companies have become key factors in the industrialization may be illustrated by a single case: the Industrial of their countries, by providing a channel for Development Bank of Turkey (TSKB), which re- directing foreign and domestic capital, both pub- ceived its ninth line of credit from the Group in lic and private, into productive investment. In a November 1970. It was in the form of a Bank loan few cases, they have begun to develop the ma- of $40 million, bringing TSKB's total support from the Bank, IDA and IFC to $128 million. TSKB was one of the Bank's first two clients in YUGOSLAVIA-Furniturefactory in Slovenia.Through the developmentfinance company field. The Bank the YugoslavInvestment Bank, the World Bankhas was instrumental in promoting its establishment provided $48 million for industrial development. in 1950, providing an initial loan of $8.7 million.
26 IFC made its first investment in TSKB shares and Population took a position on the Board of Directors in 1963, The Bank Group's assistance to member coun- a post it has since relinquished. Many of TSKB's tries in the field of population planning is more officials and key staff members have come to the extensive than the volume of its lending indi- Bank for special training, some as fellows of the cates: three projects totaling $10 million through Economic Development Institute and others in fiscal 1971. Bank and IFC departments. The Bank made its second loan for this purpose Today, TSKB has about 400 loans outstanding. during the year, while IDA entered the sector for It has made commitments to private ventures in the first time. The Bank's loan of $3 million will Turkey amounting to the equivalent of $216 mil- assist a project in Trinidad and Tobago, while lion, including $13 million in equity. In recent IDA's credit provides $4.8 million to help expand years it has been able to broaden its resource base the capacity and improve the effectiveness of by borrowing from the European Investment Bank Tunisia's national program. Both projects provide and the Kreditanstalt fur Wiederaufbau. for the construction of various types of health IFC financing during the year amounted to $101 facilities, and the one in Trinidad and Tobago million, compared with the previous year's total of includes a family planning institute. The technical $112 million. This brought the cumulative total assistance elements include provision for aid in of the Corporation's financing to $578 million, program evaluation, management, family life edu- including $50 million in standby and underwriting cation, utilization of manpower and training of commitments. Of the all-time total, $306 million, family planning workers. or more than half, has been committed in the last A series of additional projects is in various three years. Of the total committed by IFC in fiscal stages of preparation, and the volume of lending 1971, $88 million was provided for manufacturing, will rise. As envisaged when the Bank Group com- $11 million for development finance institutions mitted itself in this field three years ago, however, and more than $2 million for tourism. As parts of its principal contribution will continue to be in the same financing arrangements, other investors various forms of technical assistance.So far, sec- provided $332 million. tor missions have been sent by the Bank to seven A Capital Markets Departmentestablished in IFC countries, including some of the largest and during the year will spearhead the Bank Group's most populous. effort to encourage the mobilization of private For the Bank to be effective, of course, requires savings in developing countries for productive commitment on the part of the government con- investment. cerned; such commitment is still not common in F = large areas, including some where population INDUSTRIALPROJECTS ~growthis having its most serious effects. Where it |IND)USTRIALPROJECTS ldoesexist, the Bank or IDA can help to realize BOTSWANA:Bank, June 1971-$32 million,. the considerable benefits of population programs. power, water, transport,township infrastructure for copper-nickel mining project (total cost of cojets are bi deloped olycin certain Iinfrastructure, $60 million), cuntries where population policies have been COLOMBIA: Bank, May 1971-$40. million, . adopted. In a number of others, the Bank has car- five developmentfinance companies. ried out reviews of the impact of population ECUADOR:Bank, December 1970-$8 million, growth on socio-economic development. two developmentfinance companies. FINLAND: Bank, October 1970-$20 million, ilevelopment finance company. POPULATION PROJECTS IRAN: Bank,July 1970-$50 million, develop- TRINIDAD & TOBAGO: Bank,May 1971-$3 ment finance company. i million, medical facilities, family planning insti- IRELAND: Bank,June 1971-$10 million, de- tute, nursemidwife training centers, technical felopment financecompany. assistance(total cost, $4.6 million). KOREA: Bank,April 1971-$30 million, devel- TUNISIA: IDA, Marh 1971-$4.8 million opment finance company. I medical facilities, paramedicalschool, technicai MOROCCO:Bank, August 1970-$10 million, assistance(total cost,$7.7 million). specialized development finance company for tourist hotel construction; May 1971-$35 mil- lion, developmentfinance company. NIGERIA:Bank, July 1970-10 million;-de Tou-dsm velopment financecompany. In more than a score of developing countries, TURKEY:Bank, November1970-$40 million, money left behind by tourists adds up to 15% or developmentfinance cornpany. -' . more of foreign exchange receipts, and from half to more than three quarters of this is net. In half
27 a dozen countries, including such large ones as Afghanistan, the Dominican Republic and Fiji, and Mexico and Spain, the importance of tourism for others are proposed for Venezuela and the Carib- development can hardly be exaggerated: for Mex- bean area. A number of other international organi- ico, it grosses a fourth of all foreign exchange zations are making important contributions to the receipts; in Spain the figure is 43%, which repre- growing bank of useful information. In addition sents an inflow of well over $1 billion annually. a number of individual countries-notably Tunisia The striking importance of tourism for the de- and Turkey-and the EastAfrican Community are velopment prospects of so many countries is a carrying out studies with their own funds or 4i- relatively new phenomenon, propelled by the jet lateral aid. The Bank is also financing an inter- engine and financed by expanding payrolls in national study of the financial aspects of hotel Europe, North America and-very recently- operations. Japan. Until August 1970, when the Bank made a loan of $10 million to help build tourist hotels in Morocco, all of the Group's direct assistance in TOURISM PROJECTS this sector had been provided through IFC and the MOROCCO: Bank,August 1970-(See Indus- development finance companies (see page 25). It trial Projects,hotel financing company,page 27). totaled about $30 million: nine IFC investments YUGOSLAVIA:Bank, June 1971-$10 million, ,}tourism complex nearPiran, facingBay of Trieste in Southin~~~~~~~~. anand CetaCentral Sot AmericaAmerica, the CaibeaCaribbean andin)and cost Africa, and 33 projects in Africa and Asia assisted (total cost, $24 million). by six DFCs with $10.6 million provided by the __l World Bank Group. Toward the end of the recent fiscal year, the Bank made a second loan in this field, providing Non-Project Lending $10 million to help finance a $24 million tourism During fiscal 1971 the Bank Group gave assist- complex near Piran, Yugoslavia, on the southern ance to members for rehabilitation purposes in shore of the Bay of Trieste. A number of other both project and non-project form, and in re- projects were in active preparation, and sector sponse to recommendations by the Pearson Com- studies already completed and in process pointed mission, the Group's policies on non-project to a slowly rising trend of financing. lending and the financing of local currency ex- In addition to the facility of tourism for attract- penditures were reviewed by the Executive ing foreign exchange, its job-creating potential is Directors. considerable. It also generates income in other As envisaged by the Articles of Agreement, productive and service sectors. Yet tourism is not specific projects have been the primary focus of always an unmixed blessing. Its helter-skelter de- Bank and IDA lending. There have been important velopment can degrade or destroy important cul- exceptions, however, beginning with the Bank's tural assets, including many on which its own earliest loans for European reconstruction. They viability rests. Displays of alien affluence in the were a form of non-project lending, sometimes midst of local poverty can be disruptive. With called "program loans," to finance the import of adequate foresight and planning, however, the essential equipment and materials. worst of such ills can be avoided and the benefits Similar loans or IDA credits have been made for of tourism further increased. In some cases,tour- general development purposes when special situ- ism projects can bring positive environmental ations have arisen to justify them. Examples have improvements. A case in point is the project in included loans for the Italian Government's de- Yugoslavia, which would not be justifiable, even velopment program in Southern Italy and various in purely economic terms, if steps were not taken industrial "import credits" to India and Pakistan. to assurethat water off the beaches would be safe In January 1971, two months after the cata- for swimming. As a condition of the loan, the strophic cyclone in East Pakistan, the Executive authorities will prepare and carry out related Directors approved an IDA credit of $25 million to plans for modern sewage treatment and disposal help the Government carry out a large rehabilita- facilities. tion program. The credit was intended to help Much more needs to be learned, and the Bank finance a wide variety of projects included in the is deeply involved in studies for this purpose. So program; these were related to long-term plans far, surveys of the sector have been carried out in which the Bank had reviewed in considerable de- 19 countries. A study of tourism potential and tail. Subsequent developments in East Pakistan problems in Bali is nearing completion, financed postponed the program's execution. by the UNDP and administered by the Bank. A loan in "program" form was made in April Agreement has been reached on UNDP studies in to Nigeria, providing $80 million to help the Gov-
28 ernment carry out its plans for post-war economic TechnicalAssistance and rehabilitation. It provides general support in for- Other Activities eign currency to help finance imports for a two- year program to rehabilitate the entire economy. Technical Assistance The Pearson Commission made two related recommendations for action which it felt would Many developing countries need assistance in improve the flexibility and effectiveness of devel- the identification and preparation of studies opruent financing. One called for removal of which can form the basis for future investment ,,regulations which limit or prevent contributions programs. There has been an increasing interest to the local costs of projects," the other for recog- in planning such assistance on a country-wide nizing "the great value, in many cases, of more basis to ensure that studies for high priority in- program aid." The Commission felt that assistance vestment projects are planned and executed at limited to costs in foreign exchange created "an the appropriate time, that studies anticipate ques- uneconomic bias towards capital intensive proj- tions which might be raised by potential investors ects," while greater use of "the more flexible form and that the limited human and financial resources of program aid" would make the current volume available for studies are used efficiently. of assistance more effective. Whenever possible, the Bank contributes to the In an analytical review of these questions, the country planning approach by identifying studies President reported to the Executive Directors his through economic missions which visit member belief that the Bank's existing guidelines were countries at regular intervals, and through special adequate to permit the financing of local expendi- sector missions. This work is coordinated with ture in appropriate cases.He also pointed out that that of other international and bilateral develop- the Bank and IDA had a well-established role and ment assistance organizations, particularly the were particularly well qualified for financing proj- United Nations Development Programme (UNDP) ects, and concluded that they should continue to and other agencies of the United Nations family. lend for projects in the absence of clearly prefer- Staff members of these organizations regularly able alternatives. participate in or cooperate with Bank-organized He concluded, however, that program lending missions. should be undertaken in special circumstances The Bank has been reviewing its working ar- where it appeared necessaryto increase the effec- rangements with the UNDP, which is placing new tiveness of Bank or IDA lending and ensure an emphasis on country programming, to ensure that adequate and timely transfer of funds in support member countries and the institutions themselves of the development programs of member coun- derive the greatest possible benefits from the new tries. After considerable discussion, the Executive approach. The Bank will continue to maintain the Directors accepted that program lending was ap- closest relationship with the UNDP and has of- propriate in special circumstances and took the fered to assist the agency itself and its representa- view that in principle, subject to specific demon- tives in matters of country programming whenever stration in each case, such circumstances might possible. arise when a borrowing country had a satisfactory The Bank Group's principal method of financ- development program and was following sound ing technical assistance is by making specific pro- economic and financial policies, but could not ob- vision for it in project loans and credits. Funds tain the external resources required to support the are often included for overseas training and fel- program by borrowing only for specific projects. lowships to help borrowers become self-support- ing in management and other skills; for expatriate experts and consultants to provide advisory, man- agement, financial and training services required for effective operation of the project being fi- nanced; and feasibility studies for the future ex- NON-PROJECTLOANS pansion of the project or sector. During fiscal NON-PROJECT LOANS 1971, Bank loans and IDA credits totaling $1,406 NIGERIA: Bank,April 1971-$80 million, im- million incorporated provision for technical as- ports for post-war rehabilitation program. sistance activities costing $49.6 million. This in- PAKISTAN: IDA, January 1971-$25 million, cluded $4.4 million for overseas training, $40 post-cyclone reconstruction. (A non-project m f credit in the sensethat projects to be financed milion for expatriate experts and consultants, and among many in the Government's reconstruc- $5.2 million for feasibility studies. tion program, were not specifically determined A credit for technical assistance was made to at the time the credit wasapproved.) Indonesia. It provided $4 million to assist the
l.______-' government in the preparation of a wide range of
29 projects. A credit of $2 million was madefor the to members'requests which the Bankconsidered samepurpose in 1968. important in terms of its own lending program.In The Bank also provides technical assistance in 1971, increased flexibility in UNDP procedures its capacityas executing agency for the UNDP,the made it unnecessaryfor the Bank Group to pro- major source of finance for technical assistance vide any financing solely for technical assistance, in the UN family. The Bank encourages member except for the IDA credit to Indonesia mentioned countries to seek financing for specific technical above. assistance projects from the UNDP whenever Since 1959, the Bank has been designated exe- feasible. In such cases,the Bank frequently assists cuting agency for 88 projects financed by the the government in preparing its application and UNDP for a total value of $76.6 million. Forty- agrees to act as executing agency where appro- five of these projects are currently under way. priate. During the past year, the Bank became exe- Of the 43 which have been completed, 37 have cuting agency for 16 new projects approved by so far led to investment or to projects included the UNDP, representing commitments totaling in the Bank Group's lending program. Three were about $14 million. Of this amount, $8 million not designed to result directly in investment, and has been earmarked for transport studies in the only three others have not yet led to any invest- following countries: Bolivia, the Democratic Re- ment follow-up. public of Congo, Korea, Paraguay,Peru, Philip- MekongBasin studies pines, Sierra Leone and the People's Democratic In response to requests from the Secretary Republic of Yemen. The remaining $6 million will General of the United Nations and the Mekong finance a study of urban transport and develop- Committee representing the Khmer Republic, ment of Bogota, Colombia, a development plan- Laos,Thailand and Viet-Nam, the Bank carried out ning project in Ethiopia, a survey of the sugar a review of the developmentof water resources industry in Indonesia, a plan for the development of the lower Mekong Basin.This has led to identi- of tourism in Fiji, a tourism study in Afghanistan, fication of a group of pioneer projects for which assistance to the Water and Power Development further pre-investment studies are considered Authority of East Pakistan, and telecommunica- justified. Arrangements have been made for fi- tions studies in Mali and Senegal. nancing 14 of these studies. Half the $2 million The BankGroup does not normally makegrants cost is expected to be borne by UNDP and half for technical assistance. Exceptions have been by four donor governments (Japan, Netherlands, made in some caseswhen, for procedural or other United Kingdom and United States). The Bank has reasons,the UNDP hasnot been able to respond agreedto the requestof all partiesto serveas exe-
Project under Supervis by the Ba n and IDA
X. AgricuItureM tducaton. z Traiportation LIIIPublic Utilities FZ 0ther'
P--i Z .r v,t ,=gi 2z 1N-:.t. ; -j X-., ;p-,;<.' A;ri.:. - \ ______'. _
, . :.06=,da . as,;.> : 0:3127 -DU' 106 16 ~ kieu..r L 52 ,t,,'S,,141 125 41
0 50 10150 200 250 300 350 400 450 500 ,ndspeispoects, in mostof Theperiod 1964.68 all BankGroup industrial projects
30 cuting agencyfor these projects,working in close for financing by the Bank Group in agriculture associationwith the Foodand Agriculture Organ- and transport and, more recently, in education. ization of the United Nations (FAO)and the Asian The Agricultural Development Service,attached DevelopmentBank. With advancesto be madeup to the EasternAfrica Mission, has continued to by UNDP and some of the donor governments, assistgovernments in that region in the manage- this work is expectedto start shortly.The Bankhas ment of agricultural projects on a reimbursable stationeda representativein Thailandto coordinate basis. the Bank'sinvolvement in the Mekong activities. Residentstaffs were maintained in India, Indo- A substantial,although not readily quantifiable, nesia,Nigeria and Pakistan.Resident Representa- amount of technical assistanceis made available tives continued to servein Afghanistan,Colombia to member countries through the Bank's opera- and Ethiopia,and others were assignedduring the tiohal missionsand reports. It rangesfrom help in year to the Democratic Republic of Congo and preparing projects and organizing suitable agen- Nepal. cies to carry them forward, to broad studies of The Bank continued to provide advisoryserv- development problems and priorities in major ices to member governmentsfacing special de- economic and social sectors.Similar assistanceis velopmentplanning problems. In fiscal 1971,staff provided through the Bank Group's cooperative members visited nine countries to review their programswith FAO and Unesco.Special units in development planning and policy-making ma- theseagencies provide expert staff to assistcoun- chineryand adviseon possibleimprovements and tries in the identification and preparationof proj- technical assistanceneeds. Secondments contin- ects for Bank Group financing, substantially ued of planning advisersto the Governmentsof supplementingthe capacity of the Bank itself to Ethiopia, Haiti and Mauritius. carryout suchwork. An expansionof the coopera- During the year, the Bankbecame a participat- tive program with Unescowas agreedupon dur- ing agencyin the Operational AssistanceScheme ing the year, enablingUnesco to provide the Bank (OPAS)of the UNDP. Under this scheme,experts with technical support in educational planning are recruited to fill operationalor executiveposts and sector studies. within governmentsat the normal salariesfor the A substantial increase is expected in Bank posts they hold. The UNDP then supplements their salariesto bring them into line with compe- Group lendtlg In the fieldsof water supply,wastes disposal and storm drainage.There is need for a titiventernational levels. As with all projects fi- considerablylarger number of sector studies and t r and related administrative work is done by the for more assistanceto governments in project . . identification and preparationin thesefields. Ac- participating agencies.It is hoped that the Bank's cordingly, an agreementhas been negotiatedwith participation in OPAS will enable it to respond the World Health Organization (WHO) to estab- more readily to requests from member gov- lish a jointly financed cooperativeprogram. Under ernments for qualified persons to fill technical the agreement,WHO's expertisewill be available and managerialpositions, including personnelfor to support the Bank'sexpanded operational work, work on projects financed by the BankGroup. and governments will be assistedto carry out studies necessary for the formulation of sector Economic DeveDopment Institute (EDJ1) programs and policies, to identify and prepare The EconomicDevelopment Institute provides projectswhich the Bankor IDA could considerfor The E conomicDevelopment financing, and to identify and prepare proposals tringfroicasoceedwhdvlpmt forareinvetmndto sdetuieand tepar projsal. programsand projects in the Bank's less devel- for-preinvestmentstudies and other projects.opdm oped memberbecunrs.Isore,eahf countries. Its courses, each of The new arrangementwill broaden, strengthen which is normally limited to 25 participants,con- and systematize informal working relationships sist of lecturescombined with group discussions, between the Bank and WHO which have existed work exercises,problem-solving assignments and for some years.The agreementis roughly similar field trips. Considerableuse is madeof casema- to thoseconcluded by the Banka number of years terials, drawn largely from the actual experience ago with FAO and Unesco.Subject to prior ap- of the Bank.Sessions are conducted by the Insti- proval by the Boards of Governorsof the Bank tute's small full-time teaching staff and by spe- and IDA, it is to become effective on Septem- cialistsfrom the variousdepartments of the World ber 1, 1971. Bank Group, as well as from other international The Bank's PermanentMissions in Easternand organizations,government agencies, universities Western Africa, with headquartersin Nairobi and and private firms. Abidjan respectively,continued to assistAfrican Coursesconducted in fiscal 1971 included an member countries in identifying projects suitable 18-weeksgeneral development course in English; 31 five courses of nine to 11 weeks in sector pro- During the year, the Bank took steps to reacti- gramming and project evaluation in industry, agri- vate certain consultative groups and to form new culture (two courses), education and transport, all ones for three countries. The Consultative Group offered in English; and general project evaluation for Thailand was reactivated at a meeting in Sep- courses in French and Spanish, of 11 and nine tember 1970. The Group for Nigeria met in May weeks respectively. Two hundred participants 1971 for the first time since February 1966. A new from 71 countries and five international organiza- Consultative Group for the Philippines met for the tions attended. Since its establishment in 1956, first time in April 1971, and inaugural meetings of over 1,300 officials from more than 100 countries consultative groups organized for the Democratic and international agencies have studied at the EDI. Republic of Congo and Ethiopia were held in May. In addition to its regular courses at the Bank's Recent experience suggeststhat for some coun- headquarters in Washington, the Institute assists tries aid coordination at the level of the consul- other international and national agencies which tative group, which normally concentrates on re- conduct training programs. Assistance may take viewing the recipient country's economic perform- the form of co-sponsorship, curricular advice, ance and external resource needs, could usefully teaching staff for short periods or teaching mate- be complemented by local groups at the country rials. An eight-weeks project analysis course for level. Such a local group can be of particular value English-speaking African participants, first given in coordinating technical assistance and preinvest- in 1969, was conducted again in Nairobi in July ment requirements. In countries in which several and August 1970, in cooperation with the African national and international aid agencies are en- Institute for Economic Development and Planning gaged in financing or otherwise assisting a variety (IDEP) and the Institute for Development Studies of development projects, day-to-day problems of at the University of Nairobi. coordination arise which can often be effectively dealt with on the spot if local officials of the agen- cies concerned are made aware of them and au- Aid Coordination thorized to expedite necessary actions. The need Discussions during the year with member gov- for such local coordination has been extensively ernments concerned have made it clear that the discussed in the Development Assistance Com- Bank is expected to play a large and guiding role mittee of the OECD. The Bank has participated in the further improvement of machinery for the actively in these discussions. The consensus, fully coordination of development assistance.This is a supported by the Bank, has been that the recipient field in which the Bank has long been involved government should take the responsibility for or- and to which it attaches great importance. Its ganizing and chairing local coordination meetings principal efforts have been directed to the organi- if it is able and willing to do so, with such assist- zation and servicing of mechanisms to coordinate ance as it may feel it needs from the Bank, the assistance for particular developing countries, a UNDP, or other agencies. function to which increasing attention is being The World Bank has been engaged in a series given by governments and other international in- of staff discussions with the Inter-American De- stitutions. velopment Bank (IDB) and CIAP, designed to A considerable number and variety of aid further improve cooperation among the three coordination groups now exist under various agencies. To help CIAP strengthen its review sponsorships. The most visible are the consortia, process, the schedules of its country reviews and consultative groups and other formal aid coordi- the Bank's economic missions to Latin American nation bodies, and country reviews carried out by countries are being coordinated; the object i; to the Inter-American Committee on the Alliance for have up-to-date Bank economic reports available Progress (CIAP). The Bank is chairman of two for the CIAP reviews. Documentation for the consortia, the Aid Group for Ceylon and 13 con- country reviews will be prepared in close consul- su!tative groups. The Bank is a member of the tation with the World Bank, IDB and other agen- Consortium for Turkey, sponsored by the Organi- cies, though final responsibility will, of course, zation for Economic Cooperation and Develop- remain with the CIAP secretariat. The Bank hopes ment (OECD), and of the Inter-Governmental that such increased cooperation at the staff level Group for Indonesia (IGGI) under the chairman- will help to build a more solid base for improving ship of the Government of the Netherlands; it also coordination of external assistance provided by provides staff support for these, for the country multilateral and national agencies in the CIAP review exercises conducted by CIAP, and for region. gr-oups convened by the Governments of Guyana With financing provided by the UNDP, the and Honduras. Bank undertook a staff and consultants recruit-
32 ment program for the Caribbean Development and expand their important work, however, and Bank (CDB), which was established during the to establish new international or regional centers previous fiscal year with the Bank's technical as- capable of doing similar work on other crops of sistance. Together with the Central American special concern to developing countries, is clearly Bank for Economic Integration, the Bank explored beyond the financial capacity of the private agen- possibilities for joint action to advance industrial cies. The Bank undertook an extensive series of development within the Central American Com- consultations on this problem with the founda- mon Market. tions that have taken the leadership in the field, and with other international organizations and Cooperationwith regionalbanks national aid agencies concerned with promoting Exchanges of information and staff visits be- agricultural productivity in the developing coun- tween the World Bank, the African Development tries. On the basis of these explorations, the Bank and the Asian Development Bank intensified President of the Bank proposed to the Executive during the year as operations of all these institu- Directors that a consultative group be formed tions have expanded in their respective member under the co-sponsorship of the Bank, FAO and countries. The World Bank's Permanent Mission UNDP to consider, on a continuing basis, the in Western Africa has played an increasingly ac- financial and technical requirements for inter- tive role in maintaining liaison with the African national agricultural research and to organize the Development Bank, especially in the field of necessary financial support. project identification and preparation; both have A preliminary meeting was held in January their headquarters in Abidjan. The World Bank 1971 of governments and other parties interested has seconded one of its staff members as an ad- in organizing such a consultative group. It was viser to the President of the African Development attended by 17 governments, three private foun- Bank, while two staff members of that Bank are dations, the International Development Research spending a year at the World Bank's headquarters, Center of Canada, and the Development Assist- gaining experience in techniques of development ance Committee of the OECD. It was agreed that finance. Both operational and economic missions a Consultative Group on International Agricul- of the World Bank call regularly at the headquar- tural Research should be created. The first meet- ters of the Asian Development Bank in Manila to ing of the Group was held in May at the Bank's discuss findings with their opposite numbers en- headquarters, dealing exclusively with organiza- route to or from member countries. Similar in- tional matters such as the composition, objectives formal staff consultations are regularly held at the and organizational structure of the Group. At the African Development Bank and with the Fonds end of June, the Consultative Group had 19 mem- Europ6en de Developpement (FED), a major sup- bers, while nine additional participants have ex- plier of both capital and technical assistance to pressed interest in continuing cooperation as many of the Bank's African member countries. observers. Under procedures to be worked out by FAO, it was agreed that up to five developing Coordinationof internationalassistance for countries would be invited to membership for agriculturalresearch two-year terms, each representing a major geo- Perhaps no investment during the past quarter graphical region. century has produced such promising results for Although membership does not involve a com- world development, as well as such challenging mitment to provide funds, a number of members new problems, as that for agricultural research. have indicated the order of magnitude of financ- Especially notable has been the research on ce- ing which they are prepared to make available reals carried out by international institutes con- under certain conditions.With the approval of the centrating on agricultural problems common to Executive Directors, the Bank Group announced several countries in a geographic and climatic re- at the first meeting of the Consultative Group that gion. Among these are the International Rice Re- it would consider providing an amount of up to search Institute in the Philippines, the Centro $3 million in grants for the calendar year 1972 to Internacional de Mejoramiento de Mafz y Trigo assist activities supported by the Consultative (International Maize and Wheat Improvement Group, provided that requisite funds cannot be Center) in Mexico, the International Institute of raised from other sources. Tropical Agriculture in Nigeria, and the Centro In its work to determine the gaps in-and pri- lnternacional de Agricultura Tropical (Interna- orities for-agricultural research needed for the tional Center of Tropical Agriculture) in Colombia. benefit of developing countries, especially at the In the past, these international agricultural re- international and regional levels, the Consultative search institutes have been financed mainly by Group will be assisted by a Technical Advisory donations from private foundations. To continue Committee (TAC). The Committee consists of 12
33 internationally distinguishedscientists under the analysisand price forecastingfor a wide rangeof chairmanshipof Sir John Crawford of Australia. commodities.This included work on experimental Six of the membersare nationalsof the develop- studies in depth of selectedcommodities; prepa- ing countries.The Bank Group provides the Sec- ration, as part of all appraisalreports on projects retariat for the ConsultativeGroup and FAO for producing commodities for export, of market the TechnicalAdvisory Committee. Subject to re- annexesanalyzing, to the extentfeasible, the pos- quired budgetaryapproval, the three co-sponsors sible effects of the projects on the world market; -FAO, UNDP and the Bank-will sharethe cost and regular consultationswith selected interna- of the TAC and of individual specialistsadvising tional commodity organizationsat an early stage the Committee. in the appraisalof suchprojects. During the year, the Bank consultedwith study groupsof the Food and Agriculture Organization of the United Ma- The "Connmodity PFrobllemn"- tions (FAO) on 10 such projectsand with the In- mnpDementalion of Decisions ternational Coffee Organization (ICO) on one. Many of the Bank Group's activities in fiscal Arrangementsfor similar consultationsare being 1971had a bearingon the "commodity problem," discussedwith additional study groups. whichhad abeariengon thesubjectofmmodensive pr -Intensified cooperation with the Coffee Di- which had been the subject of extensivediscus- versification Fund (CDF) of the ICO, established sion by the ExecutiveDirectors during the pre- in 1968 and the only such fund set up under an vious two fiscal years. international commodity arrangement.The Bank In 1969, these discussionshad resulted in a has indicated its readinessto work out joint or series of decisions by the Executive Directors parallel financing arrangementswith the CDF for which have servedto guide the Group's work in diversification projectsin coffee-producingcoun- helping to accelerate the diversification of pro- tries. duction in countriesthat are overly vulnerableto -Increased attention to problems of diversifi- the vagariesof primary commodity markets, in cation in economic reports and sector studies, helping to strengthenthe competitive position of and in forward planning of the Bank Group's in- such commodities,and in furthering international vestmentprogram for individual countries. arrangementsto stabilize their prices. In essence, they constituted a mandate to intensify efforts already being made along these lines. EcononmicStudies In 1970, the ExecutiveDirectors had reviewed Economic analysisis the World Bank's main thesequestions in their deliberationson two rele- professional instrument for charting its policies, vant recommendationsby the PearsonCommis- guiding its operationsand respondingto requests sion: that the Bank, in considering loans for for technical assistanceor special studies, both agriculture projects, take into account "the im- from member governmentsand from the world pact of new production capacityon world market developmentcommunity. Its capacity to perform prices" as well as ratesof return in the borrowing such work was strengthenedin fiscal 1971 (see country, and that the "financing of buffer stocks Staff and DepartmentChanges, page 41). in support of well-conceived commodity agree- More than a score of important policy issues ments and policies should be recognized as a addressedduring the year by the ExecutiveDirec- legitimate object of foreign aid." On the first tors required extensiveeconomic research and point, while the Bank has taken into account the analysis. This was true, for example, of many price impact of new production on projects, it questions raisedby the PearsonCommission in,its was agreedthat an effort should be made to de- recommendationsfor action, 33 of which applied velop techniquesfor makinga broaderassessment to the World Bank Group and were considered of the effects of future price developments.On by the ExecutiveDirectors. Many referencesto the second point, no immediate needwas found these discussionswill be found in this Report. for buffer stock financing beyond that available Applied economicsis, of course,a vital element through the InternationalMonetary Fund. in virtually every aspectof day-to-dayoperations. In carrying out the ExecutiveDirectors' deci- It provides the principal analytical tools for sions in this field, the following activities in fiscal studies of member countries' economies, their 1971were especiallyrelevant: prospectsfor development,and the likely effects -The Bank'sfirst loan for a national program of existing and alternativepolicies. It is essential of agricultural research(page 7) and its co-spon- to the adequateexamination of economic sectors sorship of a consultative group in support of in- and priorities for financing, the appraisalof spe- ternational agricultural research(page 33). cific projects, the determination of borrowers' -Intensification of the Bank'swork in market creditworthiness,and the provision of technical 34 assistance,especially on mattersof planning and ment problems of general concern. In 1969, the policy. Bank was requestedby the Trade and Develop- Special studies closely related to operations ment Boardof the United Nations Conferenceon are carried out by staff economistsor consultants Tradeand Development(UNCTAD), to "consider employed by the Bank as problems arise in the working out arrangementsfor supplementaryfi- courseof lending and technical assistanceactivi- nanceand, if appropriate,to consider introducing ties, or as experienceshows the need for better them." This referred to possiblearrangements to analysisor new techniques.From time to time, cushion the impact on developmentprograms of these result in monographsof wider professional unpredictableshortfalls in earningsfrom primary interest, and are published in a seriesof "World commodity exports, and resulted from a study Bank Staff OccasionalPapers." One of these, a conducted by the Bank at UNCTAD'srequest in study of "Risk Analysisin Project Appraisal" by 1965. The PearsonCommission had also urged Louis Y. Pouliquen, was published in fiscal 1971, that the adoption of sucha schemebe expedited. and severalothers were being preparedfor pub- Lackingany indication that funds required would lication. Occasionallystudies of larger scope are be available beyond those provided for regular publishedfor the Bankby the JohnsHopkins Press. development assistance,however, the Bank ad- An example in fiscal 1971was "The Structure of vised UNCTADin August1970 that it would defer Protection in Developing Countries," by Bela further detailedconsideration of sucha proposal. Balassaand Associates. The matter was discussedby the ExecutiveDirec- Specialstudies tors in April 1971, on the basis of a renewed As larger issuesappear over the horizon of de- request from UNCTAD that the Bank pursue its velopment, the Bank attempts to lay the founda- efforts to work out the details of a schemeof sup- tion for an adequate operational response by plementary financing and to assessits probable conducting more basic studies employing all cost. It was agreed that the problem would be availabletechniques of researchand analysis.For kept under review, and meanwhile that the Bank example, the staff began a broad examination of would examineon their merits any casesof hard- employment and income distribution and their ship that might arise from shortfalls in export relation to development.It is hoped that the study earnings. will throw new light on the magnitudeof the un- employmentproblem and methodsof combatting it, on the "trade-off" between employment and AngernacyonaDDnvestment DnsnAance growth of production, and on resulting policy Agency (DtIA) issues.The result of one such project was nearing Discussionscontinued during the year regard- completion as the fiscal year ended. It is a pro- ing the proposal for the creation of an Interna- gramming study of Mexico, which attempts to tional InvestmentInsurance Agency. A number of analyzethe relationshipsbetween the project, the major issueswere defined and clarified,and at the sector and the whole economy, employing a sys- end of the fiscal year severalsuggested solutions tem of inter-relatedprogramming models for each were under consideration by the Executive Di- level. A similar study of the Ivory Coast is under rectors. way. The object is to sharpenexisting tools and The ExecutiveDirectors were assistedin their develop new methodologywhich might provide work by information and oral presentationsgiven better answersto questions confronting both the by representativesof major bilateral investment Bank and its member countries, such as possible guaranteeprograms. conflicts between growth, on the one hand, and employmentand incomedistribution on the other. At the 1970 Annual Meeting of the Board of InternationalCentre for Setilement of Governors in Copenhagen,many Governorsex- Investment Daispbutes(CCSID) pressed concern over the mounting burden of ByJune 30,1971,62 States had ratified the Con- externaldebt borne by developing countries and vention on the Settlementof InvestmentDisputes the rising proportion of their export earnings betweenStates and Nationalsof Other Statesand claimed by debt service payments.In response, are thus membersof ICSID. Four additional gov- the Presidentof the Bank agreed that the staff ernmentshad signedbut not yet ratified the Con- should undertakea major study of the problem. vention. This work has been completed. (For a discussion During the past year, ICSID learnedof a num- of the debt problem, see page 50.) ber of major investment contracts providing for Occasionallythe Bank is called upon by other the submissionof any future disputes to ICSID; internationalinstitutions to study, and sometimes provisionsto that effect were also included in na- to make recommendationson, specific develop- tional legislation and further bilateral investment 35 promotion treaties. The Centre's project for col- Borrowings for development in 1970 amounted lection, classification and dissemination of invest- to $1,638 million equivalent, a gain of more than ment promotion legislation and treaties was con- 28% over similar borrowings in 1969. All of the tinued. The Centre's own Annual Report provides increase was accounted for by the international details of its membership and affairs. development institutions. These issuers sold a total of $1,261 million in the year, up by $396 mil- lion and equal to some 21 % of all issuessold. The Borrowings and Finance developing countries, on the other hand, reduced their borrowings in 1970 by about $37 million lo World Capital Markets-Calendar 1970 a total of $377 million equivalent. The volume of long-term securities offered or Europe, for the fifth consecutive year, was the placed in the world capital markets by all external principal market for long-term external borrow- borrowers declined in calendar 1970 for the sec- ings in 1970. Sales of obligations on this market ond consecutive year. For six straight years before totaled about $4,231 million equivalent, a de- 1969, securities sales in these markets had regis- creaseof some $370 million from 1969 volume. tered gains. Among European currencies, the largest volume In 1970, aggregate sales of foreign and inter- of borrowing in 1970 was in Deutsche mark, as it national debt issues amounted to $6,021 million was in 1969, though the volume of sales in marks equivalent, a decline of $199 million or 3.2% was down substantially. Foreign issues floated on from the volume in 1969 and of more than $1,708 the German market last year amounted to $381 million from record sales reported in calendar million equivalent and Eurobond issues denomi- 1968. nated in Deutsche mark aggregated the equiva- Among the major categories of borrowers, lent of $607 million. Swiss franc issues in the year gains in borrowing were reported for the indus- amounted to the equivalent of $286 million trial countries of Europe, multilateral European with virtually all borrowing consisting of the sale institutions and international development insti- of foreign obligations in the Swiss market. tutions. These gains, however, were offset by a Sales of long-term obligations in Europe by ex- sharp decline in borrowings by issuers in other ternal borrowers in the industrialized countries industrialized countries, notably Canada, Japan amounted to $3,372 million equivalent in 1970, and the United States,and by a modest decline in including $351 million of foreign issues floated on borrowings by the developing countries. (Details the Swiss, French and Belgian markets and $3,021 of offerings in the world capital markets in cal- million of obligations sold in the Eurobond mar- endar 1970, with comparative figures for earlier ket. For the year the total of sales in Europe by years, are shown in Annex Table 12.) this category of borrowers was off by $362 million The decrease in the volume of activity on the or nearly 10%. long-term capital market took place during a pe- United States corporations and their affiliates riod of mixed trends in the costs of borrowing continued, as they have for the past six years, to internationally. These costs reached a peak in be the largest class of borrowers in Europe. How- May-June 1970 and then followed a declining ever, due to shifting interest rate patterns, which trend through the remainder of the year and into from time to time made borrowing more attrac- January 1971. However, early in 1971 there was a tive domestically, and to a slowing in the U.S. sharp reversal in the volume of saleswhich moved economy, U.S. corporations reduced their bor- strongly upward. As a result, costs of borrowing rowings in Europe last year to $1,092 million as internationally began to rise again in February compared with $1,257 million in 1969. 1971; preliminary figures indicate that this trend Italy was the second largest borrower in Europe in costs continued, with inter-uptions, through in 1970, with government and corporate issues June 1971. amounting to $433 million equivalent, including Long-term foreign and international borrowings $362 million sold in the Eurobond market. OthIer by issuers in the industrialized countries totaled important borrowers in Europe in the year were the equivalent of $4,168 million in 1970, equal to issuers in the Netherlands, with sales of $292 mil- 69% of the year's total and a decrease of $668 lion; France, $267 million; the United Kingdom, million or 14% below their borrowings in 1969. $258 million; Canada, $178 million; and Japan, Issuers in the industrialized countries of Europe $120 million. increased their borrowings by some $95 million Long-term borrowings by the developing coun- in the year to $1,766 million equivalent. More tries in Europe were $179 million. The Republic of than offsetting this gain was a decline of $763 mil- Argentina borrowed $62 million equivalent in lion, to a total of $2,401 million, in borrowings by Europe: $50 million in the Eurobond market and issuers in other industrialized countries. the equivalent of about $12 million in the market
36 in Switzerland. Other developing country bor- placementsof two U.S.dollar issueswith central rowers in Europe were the Federal Electricity banksand international organizationsamounting Commissionof Mexico, $20 million; Panama,$30 to $349million. million; the HighwayAuthority of Spain,also $30 million; and Brazil, $15.5million. The Bank'sBorrowings-Fiscal 1971 The market in the United States absorbed Borrowingsby the World Bankin the 1971 fis- $1,293 million of foreign securitiesin the year, a cal year increasedsharply and reacheda new rec- decline of only $44 million below the previous ord level, as the Bank continued to build up its year's total. Issuers,provincial and corporate, in financial resourcesto meet the requirementsof Canadasold $795 million in issuesin the United its larger lending program. States in 1970, a decline of $296 million from Eighteenissues of Bank obligations were sold salesin 1969. during the year,aggregating $1,368 million equiv- Partiallyoffsetting the declinesin Canadianand alent. This compared with $735 million in fiscal developing country borrowings in the United 1970 and $1,224million in fiscal 1969, the pre- Statesin 1970,were salesof $300million of obli- vious peak marketingyear. gationsby internationaldevelopment institutions: In addition to issuessold during the fiscal year, $200 million by the World Bankand $100 million in June1971 the Bankarranged for the public of- by the Inter-AmericanDevelopment Bank. In 1969 fering of issuesin Japanand Switzerland.In each there were no sales in the U.S.by this class of casesettlement was scheduledafter the close of issuer. the fiscal year, so that the two issuesare not in- Japanbecame a major factor in supplyingfunds cluded in the total borrowingsfor the period. The to development institutions in 1970.The Bankof Japaneseissue, the first public offering of World Japan lent Y 72,000million, $200 million equiva- Bank bonds in Japan,amounted to Y 11,000mil- lent, to the World Bankand a further X 6,000mil- lion (equivalent to US$30.6million) of Ten-Year lion, $16.7million equivalent, was borrowed by 73/4%Bonds. The Bondswere priced to the pub- the Asian Development Bank in the Japanese lic at 991/2%,and the offering was made through market. an underwriting group of Japaneseinvestment As previouslynoted, the internationaldevelop- firms in associationwith commissioned banks. ment institutions sold a total of $1,261 million The Swississue, offered in June,amounted to SwF equivalent of long-term obligations in calendar 75 million of 61/20%Fifteen-Year Bonds offered 1970.The Asian DevelopmentBank raised nearly at par. $22 million equivalent through the sale of a Yen Included in the issueson which settlementwas issue in Japan equal to $16.7 million and of a made in fiscal 1971 were marketingsin the Neth- Schilling issue equal to $5 million in Austria. erlands,Switzerland and the United States,where The Inter-AmericanDevelopment Bank sold four the Bankhad not raisedfunds for about two years. issues in the year, aggregating $165.6 million For the first time, the Bank obtained Libyan equivalent.The issuesincluded one amountingto pounds through a borrowing from the Bank of $27.3million equivalentin Deutschemark offered Libya. It also raisednew funds by meansof three in Germany,the $100 million issueof bonds of- public offerings in the Germanmarket and bor- fered in the U.S. and two issuessold in Europe, rowings from The Bank of Japan. amountingto $38.3million. Borrowingsin fiscal 1971 included $886million Borrowingin fourcontinents equivalent of obligations sold to raise new funds Altogether the World Bankmarketed 14 issues, and $482 million of refundings. In the previous aggregating$1,074million, in calendar1970,com- year, new borrowings totaled $362million and re- pared with $713 million in 1969.The Bank's1970 funding obligations $373 million. borrowings comprised a public offering in the In fiscal 1971two issuesaggregating $400 mil- United Statesof $200 million; two public offer- lion were sold by public offering in the United ings,in Germanyaggregating DM 350 million (US Statesmarket: $200 million of 85/a%Twenty-Five- $96 million); private placementsin Germanyof Year Bondsoffered at par in July 1970,and $200 DM 548 million (US$150million); two issuesof million of 61/2%Five-Year Notes offered at par in NetherlandsGuilder bonds amounting to f. 120 January1971. Of the total, $384million was pur- million (US$33 million), for which settlement chasedby investorsin the U.S.and $16 million in took place in January1971; a public offering of other countries.At the end of the year $17.1mil- SwF 75 million of bonds in Switzerland,equal to lion of the 85/g0%Bonds remained on delayedde- $18 million at the time of sale; placementof £L livery, for delivery to purchasersthrough August 10 million (US$28 million) of bonds with the 2, 1972. Bank of Libya; Y 72,000million (US$200million) In offering the Five-YearNotes, the Bankacted of obligations placedwith The Bankof Japan;and to broaden the market for its securities in the 37 ~$~Av6rages 1St.48.d1989-70and 1971*
.,.;,. __: | s 11 S :111 _ ~~~~~~~~~~~~~~~5,500
5,000'
4~~~~~~~~~5OO ~~~~~~~~~~~~~~~~4,500
7-4#aqk 74. - #.80;95effA-e;. 4,000Z H .~ .
>2i$OO 2.' SlS\it aGrS - ...... , . . 3,500?#,_fi,
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2,500
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404 Asiaand Oceania
Al p 83 ______0~~~~~~~~~~~~~~~~~~~~~~~~~~ 1969-70 ~~~~~~~1971 AM$' ~~~~~~~~Avetage din~ ~J~ *i~ri~ ~ i61~hwa h~~h ~bart,tetated ~proxinateWy $37 million at June30,1971.
United States. Heretofore, it has concentrated The Bank looks forward to further development largely on developing the U.S. market for its long- of the market for its long-term bonds in Japan, term issues; in this instance, it offered interme- and expects from time to time to tap this new diate-term obligations attractive to commercial source of funds for development. banks and other financial entities which, by the The Bank's public offerings in Germany nature of their business or the needs of their port- amounted to DM 550 million: DM 200 million of folios, seek shorter-range maturities for invest- 81/20%Ten-Year Bonds offered in July 1970 at ment. 991/4%; DM 150 million of 8% Fifteen-Year Bonds As in the preceding year, The Bank of Japan was offered in December 1970 at 983/4%; and DM 200 a major source of World Bank funds borrowed in million of 71/2% Fifteen-Year Bonds offered in fiscal 1971. Three loans, aggregating Y 79,000 mil- May 1971 at 991/2%. lion, equivalent to US$219 million, were made by In Germany, the Bank also refunded, through The Bank of Japan. Interest was 7.43% a year, and the issuance of notes, a total of DM 528 million the loans come due serially over the period of maturing debt. Of these refundings DM 459 1975-76. million was with the Deutsche Bundesbank and Altogether, the World Bank has received five DM 69 million with the Deutsche Girozentrale- loans aggregating Y 151,000 million from The Deutsche Kommunalbank. Bank of Japan since February 1970. This sequence Two issues denominated in Netherlands guild- reflects the continuing growth in Japan's mone- ers were sold by the Bank. One amounting to f.60 tary reserves,and the Government's desire to con- million of 8¼/4%Fifteen-Year Bonds was publicly tribute to development financing through the offered at 99% in the Netherlands; the other, also World Bank. amounting to f. 60 million, consisted of 73/4%
38 Five-Year Notes and was offered at 991/4% in De- gain of $474 million during the fiscal year and of cember 1970, to non-residents of the Netherlands more than $1,000 million over the amount at the and the United States. In Switzerland a syndicate end of fiscal 1968. By adding to liquid assets, the of Swiss banks offered SwF 75 million of World Bank insured its ability to meet larger cash re- Bank 63/4% Fifteen-Year Bonds. The offering was quirements for loan disbursements. The Bank made in November 1970 at 991/20%. maintains a continuing review of its liquidity re- In the year, the World Bank made its initial bor- quirements, and for its longer term needs has es- rowing of Libyan pounds through placement of tablished guidelines to meet future contingencies. £L'10 million (US$28 million equivalent) of 8% Five-Year Bonds with the Bank of Libya. Central banks in some 70 countries, together Increasein Capital: Bank with an international organization, supplied the During fiscal 1971, the Bank's Board of Gover- remainder of new funds raised during the year. nors approved two resolutions calling for in- The Bank placed with these institutions two issues creases in both authorized and subscribed capital. of Two-Year U.S. dollar Bonds totaling $375 mil- Effective December 31, 1970, the authorized capi- lion: $175 million of 77/8% Bonds, placed in Sep- tal of the Bank was raised from $24,000 million to tember 1970, and $200 million of 5.20% Bonds, $27,000 million. The purpose was to enable the placed in March 1971. Of the total, $337 million Bank to accept special increases totaling $2,222 replaced two maturing issues and $38 million was million in the capital stock of 75 member coun- added to the funds of the Bank. tries, which were approved in July 1970. It also The outstanding funded debt of the Bank was provides sufficient authorized capital for the sub- increased during the year by delivery of $43.5 mil- scriptions of new members and for any increases lion of bonds sold in a previous year on a delayed in those of individual members. delivery basis. The U.S. dollar equivalent of the The special increases in the subscriptions of 75 Bank's outstanding debt was increased a further members, on a selective basis, follow similar in- $10 million as a result of the upward revaluation creases in the International Monetary Fund re- of the Swiss franc. sulting from the Fund's fifth general review of A total of $490 million equivalent of debt ma- member countries' quotas. tured in the fiscal year. The bulk was held by the Under the resolution authorizing special in- Deutsche Bundesbank and other central banks creases to capital stock, the 75 members involved and governmental institutions outside the United have the right to subscribe to an additional 22,220 States. Included, however, was £2.1 million of sharesat a price of $100,000 a share. If all special 31/2% Twenty-Year Stock sold on the London increases are taken up, the Bank's subscribed market in 1951, which came due in the year. The capital will rise to about $25,500 million, of which original amount of the issue was £5 million, of more than $2,500 million would be paid in and which f2.9 million had been previously retired. A approximately $23,000 million would remain sub- further $58 million of debt was retired during the ject to call only to meet the Bank's obligations year by means of sinking and purchase fund op- created by its own borrowing or by guarantees of erations. loans. Distribution of Bankdebt To June 30, 1971, nine members had taken up At June 30, 1971, the outstanding funded debt their special increases in subscriptions, and a fur- of the Bank stood at $5,424 million equivalent, an ther 13 members were taking the necessary steps increase of $856 million for the year. The esti- to do so. mated division of holdings of the Bank's outstand- ing debt by countries as of June 30, 1971, was 38% by investors in the United States,27% in Other FinancialOperations: Bank Germany, 8% in Japan, 5% in Switzerland, and Loans held by the Bank on June 30, 1971, net of 40/i in Canada. The remaining 18% is held largely exchange adjustments and including those not by central banks and other governmental institu- yet effective, totaled $11,327 million, an increase tions in more than 75 countries. of $1,459 million in the fiscal year. Effective loans The Bank's borrowing costs in the period, held amounted to $9,980 million as of June 30, weighted by amount and maturity, averaged 1971. 8.07% compared with an average of 7.54% in Disbursements on loans in fiscal 1971 were fiscal 1970. In September 1970 the Bank's lending $955 million, the highest level reported in any rate was raised from 7% to 71/4%. This rate was year and a gain of $183 million over the year be- maintained through fiscal 1971. fore. Cumulative disbursements on June 30, 1971, Liquid resources available to the Bank aggregated $11,310 million; the undisbursed por- amounted to $2,566 million on June 30, 1971, a tion of loans at the end of the year was $4,741
39 million compared with $3,905million at the end fiscal 1970), and the further deduction of $1.75 of fiscal 1970. (Seecomment below concerning million paid for "Service and Support" by IFC. disbursements.) The previous year, the Bank'sadministrative costs Repaymentsby the Bank'sborrowers were $465 were $45 million. The Bank charge to IFC for million in the year,including $319 million paid to "Serviceand Support" took effect on July 1, 1970, the Bank and $146 million to investorswho had replacing an earlier cost-sharingarrangement un- purchasedportions of the Bank'sloans. Cumula- der which certain categoriesof IFCexpenses were tive repaymentsas of June 30, 1971,were $4,227 chargedto the variousitems involved. million: $2,445 million to the Bank and $1,782 At the 1970 Annual Meeting of the Board of million to purchasersof loans. Governors,the Board approveda transfer of $100 Salesof participations in loans and of items million of the Bank'snet income for fiscal 1970as from the Bank's loan portfolio were down sub- a grant to IDA; the remaining$113 million of that stantially.The total of $24 million comparedwith year's net income was allocated to the Supple- salesof $172 million in fiscal 1970; normal sales mental ReserveAgainst Losses on Loansand Guar- in that year had been augmented, however, by anteesand from CurrencyDevaluations. After the the purchaseof $162.5million of portfolio items close of the 1971fiscal year the ExecutiveDirec- by The Bankof Japan.As of June30,1971, cumu- tors allocated $102 million of net income for the lative salesof loan participations and from loan period to the SupplementalReserve, raising it to portfolio aggregated$2,373 million. $1,254million and total reservesto $1,546million. The ExecutiveDirectors at the sametime recom- Incomeand Expenditures:Bank mended to the Governorsthat they approve the The Bank'snet income for the fiscal year was transferto IDA, as a grant, of the remaining $110 $212million, comparedwith a net of $213million million of net income for the year. in fiscal 1970. Commissionstill chargedon out- standing portions of the Bank'searliest loans de- Disbursements:Bank clined to $286,000,as additional principal on In fiscal 1971,Bank disbursementsapproached these loans was repaid. It was credited to the $1,000million for the first time in a single year: Special Reserve,which amounted to $292.2mil- the total was $955 million, an increaseof nearly lion on June 30, 1971. 24% over the previous year. Gross income for the year was $577million, an Lending by the Bank hasaveraged $1,658 mil- increase of $73 million over the previous year. lion over the last three years,compared with $854 Contributing to the increasewere gains of $38 million for the years 1966-68.A considerablelag million in investmentincome to $187 million and had developed between commitments and dis- of $39 million in incomefrom loans to $383mil- bursements.There had been little or no increase lion. Other income declined $4 million to a total in the volume of disbursementsin fiscal 1969and of $7 million. 1970,and it wasonly during the year under review More than offsetting the rise in gross income that the impact of the higher level of lending be- was an increaseof $74 million in expenses,which gan to be reflected significantlyin disbursements. totaled $365 million. Bond and note interest and A number of steps have been taken, and other issuanceexpenses continued to rise.This reflected possibilities are being explored, to help reduce in part the impact of higher interest costson bor- the interval between commitmentsand disburse- rowingsin recentyears; in part,it resultedfrom the ments while maintaining the Bank's established year's sharp increasein funded debt outstanding. standards of effective project implementation. Thetotal of theseexpenses in the period was $309 Referenceto one of thesemeasures will be found million, comparedwith $246million the year be- in varioussections of this Report: the practiceof fore. Taking into accountthe substantialamount including funds in loans for feasibility studies, of funds derived by the Bank from its paid-in or evenfor final engineeringwork that will be re- capital and accumulatedearnings, the overall cost quired for other projects in the same or related of all funds (capital, accumulated earningsand fields. Occasionallythe Bank includes funds in a borrowings)through fiscal 1971 was 3.7%, com- project loan to reimburse the borrower for ex- pared with 3.3% through fiscal 1970. penditure it hasalready incurredto carryout such Administrative expensesof the Bank and IDA preparatorywork. In rare cases,a separateloan is increasedas a result of further staff additions to made specificallyto financedetailed engineering meet the requirementsof expandingoperations, costsfor a future project, but this is a costly pro- as well as the general rise in operating costs. cedure in terms of staff time required to process The Bank'sadministrative expenses were $56 mil- the engineering loan itself. Especially in the lion after deducting $20 million in "Management poorer countries, more assistanceis being given Fees" from IDA (compared with $16 million in in connection with procurementprocedures and 40 project execution. Field supervision of projects further $10,540,000would be made available in hasbeen intensified,and includesa review of dis- the same period by three Part II countries: Ire- bursementproblems. land, Spainand Yugoslavia. The lag in disbursementswas the subject of in- The SwissConfederation has also agreed,sub- tensive review during the year,and of discussion ject to parliamentaryapproval, to lend IDA the by the ExecutiveDirectors. Analysisshowed that equivalent of about $32 million without interest. it stemmedfrom a number of causes,including a Proceedsof the loan would be made availablein lower proportion of relatively quick-disbursing three equal instalmentsin the years1971 through loans, which characterizedmuch of the Bank's 1973,and repaymentwould extendover 50 years. early assistanceto more developedcountries; an Altogether,a total of about $2,440million would increasing proportion, among the Bank's bor- be available in the three years,with about $813 rowers, of very poor countries with less experi- million being paid in annually. ence in executing projects and working with The resolution covering the third replenish- the Bank; and a steady increasein both the va- ment provides for an adjustment of the voting riety and comprehensivenessof projects being power of the Part I countries that will more ac- financed, often requiring more time for execu- curately reflect the shareof each of them in total tion, and therefore disbursement. Part I contributions to IDA. It also provides an opportunity to the Part II countries to increase Finances:IDA their subscriptionsin order to maintaintheir rela- New credits signed by IDA in the fiscal year tive voting power as a group. Payment on addi- amounted to $584 million, bringing the gross tional Part II subscriptions will be made in the aggregatesince the start of operations to $3,406 currency of each subscribing member. million. About two-thirds of the total of effective When the third replenishment becomes effec- credits held by the Association had been dis- tive, it will more than double the amount avail- bursed by June 30, 1971, including $235 million able to IDA under the second replenishment. For in the latest fiscal year. it to become effective, however, countries pro- Resourcesavailable to IDA were increaseddur- viding not less than $1,900 million of additional ing the year by approximately$161 million. They resources,and including at least 12 Part I mem- included a grant of $100 million by the Bank from bers, must formally notify IDA that they will make its fiscal 1970 net income, which was approved their specified subscriptionsand contributions. by the Board of Governors at the 1970 Annual The original target date for the third replenish- Meeting in Copenhagen.A further $48 million was ment to take effect was June 30, 1971. To that receivedfrom one membercountry in paymentof date, formal notifications had beenreceived from its pledge under the second replenishment.The 10 Part I countries pledging an aggregate of Associationalso accepted a contribution offered $1,068 million and 39 Part 11countries pledging by New Zealand, which is not a member of IDA, about $4 million. The effective date has been amounting to $NZ5 million, equal to US$5.6 extended to September 30, 1971, to permit com- million. Net income for IDA in the period pletion of action by other Part I countries. (See amounted to $7 million. page 5 for action by some countries to com- Grants from net income have been made by mit contributions in advance of the agreement's the World Bank to IDA in each year since 1964, effectiveness.) and have totaled $485 million. As authorized by the Board of Governors, these grants have been Organizationand Administration of funds "not neededfor allocation to reservesor Staffand DepartmentChanges otherwise required to be retained in the Bank's business" and which, "accordingly, could pru- Professor Hollis B. Chenery succeeded Mr. dently be distributed as dividends." Except in Irving S. Friedman in September 1970 as Economic 1967, they have amounted each year to about half Adviser to the President and Chairman of the the Bank's net income. After the end of fiscal Economic Committee. 1971, the Bank's Executive Directors recom- In November 1970, the Bank opened its office mended a grant of $110 million, representing in Tokyo. Its activities are mainly concerned with nearly 52% of the year's net income. facilitating liaison between the Bank and the A resolution calling for a third replenishment of Japanese Government, as well as the Japanesefi- IDA's resources was approved by vote of the Gov- nancial community. Mr. Aritoshi Soejima was ap- ernors on February 17, 1971. Under the resolution, pointed Director of the new office. Mr. Soejima had the 18 Part I countries would make available addi- served as Counselor for International Affairs of the tional funds totaling $2,398 million in the three Ministry of Finance in Tokyo and spent six years year period June 30, 1971, to June 30, 1974; and a on the staff of the International Monetary Fund. 41 Also in November, Mr. Luis Escobar was ap- pointed to the new post of Special Representative YOUNGPROFESSIONALS PROGRAM for Inter-American Organizations. (CumuilativeAppointments Currently in Service, Effective January 1, 1971, a major departmental UndergoingTrainingor Committed change involved reorganization of the central Afghanistan...... , . , ... 1 economics staff into three units, all reporting Algeria .... , .,, 1 to the Economic Adviser to the President: the Australia. 4 Economics Department, the Economic Program Austria. 4 Department and the Development ResearchCen- Belgium. 8 ter. Mr. P. D. Henderson, formerly Chief of the Brazil. 2 1.. Quantitative TechniquesQuantitative and Analysis Division, ~~~~~~~~~~~~~~~CanadaCameroon...... 7 was appointed Director of the Economics Depart- Chile. 1 ment in January 1971. Mr. John Philip Hayes was China. 2 appointed Director of the Economic Program De- Colombia. 2 partment in May 1971. He served most recently Cuba ...... , 1 Denmark...... 1 as Deputy Director-General of Economic Planning Finland. 3 at the Overseas Development Administration of France ..... 18 the Foreign and Commonwealth Office in Lon- Germany. ... . 13 don. Mr. Hayes served as an economist on the Ghana .... 1 economic staff of the Bank from 1958 to 1964. Guatem.a.a. Also effective January 1, 1971, Mr. K. Georg Guyana ...... 1 Gabriel was appointed Controller of the World India ...... 18 Bank Group, succeeding Mr. Francis R. Poore, Iran ...... 1 who retired after more than 23 years of service. Iraq . 1 Mr. Gabriel joined the Bank staff in 1967 and had Ireland.. 3 been Deputy Controller since 1969. Italy .6 In another reorganization effective February Jamaica.... ,, 1 -i971, a new Department of Computing Activities Japan ...... 5 took over the programming and systems analysis Korea...... 1 ILebanon...... 1 functions assigned to the Data Processing Division Malaysia...... 1...... 1 of the Administration Department and the Sta- Mexico ...... 2 tistical Services Division of the Economics De- Morocco ...... 1 partment, and responsibility for operations of the Nepal ...... 1 Netherlands...... 7 Joint Computer Center. Mr. Mervin Muller, for- New Zealand...... 4...... 4 merly Professor of Computer Sciences and of Sta- Nicaragua...... 1 tistics at the University of Wisconsin and Special Nigeria ...... 3 Assistant to the Vice President of the University, Norway ...... 3 5 joined the Bankjoined in February 1971 as Director of ~~~~~~~~~~~~~~~~~~PhilippinesP1listan ...... the new Department. Rhodesia...... 3 Responsibility for overseeing the work of SierraLeone ...... 1...... 1 the Administration Department of the World South Africa ...... 3 Bank Group was assigned in April 1971 to Mr. Spain.7 Sweden...... 11 Mohamed Shoaib, Vice President. Switzerland ...... 6 Mr. Ernesto Franco-Holguin was appointed Spe- i Thailand...... 1 cial Representative for United Nations Organiza- Trinidadand Tobago ...... 1 tions, succeeding Mr. Federico Consolo, who Tunisia ...... 1 on April 1, 1971. Turkey ...... 1 retired Uganda ...-...... 1 United Arab Republic...... 4 Recruitment United States...... ; ...... 28 The Bank's program to recruit highly qualified United Kingdom ...... 16 new staff for its expanding program of lending Yugoslavia ...... 1 new ~~~~~~~~~~~~~~~~~~~~~~TOTAL.2...... 30 and technical assistance continued through fis- Countries.57 cal 1971. Two hundred sixty seven professionals joined the staff during the year, resulting in a net increase of 178 and a total of 1,348. professionals, the number of staff members rose This represented an increase of about 82% over to 2,610, an overall increase of 1,046. the three years since 1968, a period in which lend- While the Bank's recruitment is based solely ing operations more than doubled. Including non- on qualifications rather than any formal or in-
42 formal nationality quota system, a special effort ______c ___ ini SubscriptionsSbrpo__Increases hasbeen madein recent yearsto achievea more i (Millionsof USdollars) representativebalance. As a result,the numberof Country From To Increase nationalities on the staff as a whole is now 89; Belgium 450.0 554.5 104.5 amongprofessionals, it rose during the year from BDenmark 173.3 221.1 47.8 68 to 78. In the last three years, the percentage of DominicanRepublic 13.3 14.3 1.0 professional staff members coming from IDA's Ethiopia 10.0 11.4 1.4 Part II (less developed) member countries has in- Germany 1,280.0 1,365.3 85.3 India 800.0 900.0 100.0 creased from 19%/ to 25%/0. Japan 772.6 1,023.0 250.4 The Bank's Young Professional Program con- Mauritius 17.1 18.8 1.7 tinued to expand. Selections have been increased Netherlands 550.0 592.3 42.3 to three each year. A total of 118 staff members Panama 9.0 17.6 8.6 who had originally entered the Bank under this SaudiArabia 96.0 Uruguay ~28.0 114.341.1 13.118.3 program have been assigned to regular Bank/IDA Urgay or IFC posts. A further 60 Young Professionals are Total now in training and an additional 30 are expected to join the program in the first few months of fis- Executive Directors cal 1972. This will bring the total number of With the increase in its subscription, Japan be- Young Professionals serving the Bank Group to came one of the five largest subscribers to the 230 from 57 countries. Bank's capital stock, and was thus entitled to ap- point an Executive Director. Mr. Seitaro Hattori Membership and ExecutiveDirectors who was elected by Burma, Ceylon, Japan, Laos, Membership Malaysia, Nepal, Singapore and Thailand at the The Bank's membership rose to 116 in fiscal 1970 regular election of Executive Directors, was 1971 with the addition of Equatorial Guinea, Fiji appointed in February 1971 as Executive Director and the Khmer Republic (formerly Cambodia), for Japan; and Khunying Suparb Yossundara was whose subscriptions were $6.4 million, $11.1 mil- elected Executive Director by the remaining coun- lion and $20.3 million respectively. IDA's mem- tries in the group. There were a number of other changes among bership increased to 107; nevv members were the teEeuieDrcosdrn h iclya.A Khmer Republic, with a subscription of $1,020,- the Executive Directors during the fiscal year. At 000, and the People's Democratic Republic of the tim who be1970 regular election, Dr. Luis Yemen (formerly Southern Yemen), with a sub- Machado, who began his service as an Executive scription of $1,180,000. Director in 1946, retired at the end of his term. At the end of the fiscal year, membership in the He was succeeded by Mr. Adrian Lajous. Dr. Bank was pending for Malta and Oman, and in Pieter Lieftinck, who joined the Bank as an Execu- IDA for Equatorial Guinea, Fiji, Malta, Trinidad tive Director in 1955, resigned on March 31, 1971, and Tobago, Uruguay and Venezuela. and Mr. A. Rinnooy Kan was elected to serve the The Bank'sauthorized capital was increased trom remarCder of his term. $24,000 million to $27,000 million, as of December Mr. Claude M. Isbister succeeded Mr. Patrick 31, 1970. Its subscribed capital rose during the M. Reid on August 1, 1970, and was reelected as 31,~ ~ . 1970 Executive Director at the 1970 regular election. year from $23,158.8 million to $23,871 million. Mr Fritz Stedtfeld became Executive Director for The Board of Governors of the Bank authorized Grm in Otobera97 iplce oMr.cWilhelm increases totaling $2,222 million in the capital Germany in October 1970 in place of Mr. Wilhelm su .scriptionsof 75 member countries; nine of Hanemann. Mr. Marc Vienot succeeded Mr. these countries had taken up $552.7 million in Georges Plescoff as Executive Director for France additional subscriptions by June 30, 1971. In addi- on November 1, 1970. Messrs. J. 0. Stone, Chris- tion, India, Panama and Uruguay increased their topher Kahangi, Erik Karlsson and Angel R. Caram subscriptions by $100 million, $8.6 million and completed their terms of service. In the 1970 $13.1 million respectively. regular election, their respective posts were filled $13.1 . by Messrs. A. W. Young, Donatien Bihute, Erik h NewMembers' Subscriptions I T6rnqvist and Luis B. Mey. Mr. Young resigned (Millions SofUSdollars) his position as Executive Director in December Country Amount 1970 and was succeeded by Mr. R. Lindsay Knight. Equatoriali Guinea 6.4 ! The nationalities of Executive Directors and the Fiji 11.1 [ countries they represent will be found in Appen- KhmerRepublic 20.3 dix 5, which also shows a number of changes Total 37.8 which occurred during the year among Alternate Executive Directors.
43
PART II 4>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
V
>V4~~~~~~~~~~~~~~~ PART 11 TRENDSAND OUTLOOK IN DEVELOPMENTFINANCE
The Flow of External Financial official development assistance, grants increased Resources to Developing Countries slightly in absolute terms but remained at a rela- tive level of about 650/ of the total, as compared Data now available on the flow of capital to the with almost 90% at the beginning of the past developing countries in 1970 appear to confirm decade. trends which have been emerging with increas- The increase in the total official flow resulted ing clarity since about 1965. Total net capital re- from a sharp rise in "other official flows," which ceipts of all developing areas from all sources almost doubled to a peak of $1.1 billion in 1970. approached $15 billion in 1970, an increase of These items represent primarily officially financed about $1 billion over 1969. Part of this increase export credits at terms with very little conces- was the result of an increased net flow from the sionary element. In the early 1960s, "other offi- multilateral development institutions. More than cial flows" rarely constituted more than 5-10% half of it, however, came from bilateral sources, of total official DAC flows; in 1970 they amounted primarily official export credits from DAC coun- to more than 14% of the total, and accounted for tries, and private capital, including both export most of the significant increase on the official credits and private investment. Official develop- side of the ledger. ment assistance from the DAC countries, the The net flow of private capital from DAC coun- main source of grants and loans at concessionary tries increased further in 1970 to $6.7 billion, con- terms, increased only slightly above the level tinuing the steady growth which began in 1962- reached in 1967. 1963 from a level of about $2.5 billion. The The broad outlines of the contributions of the increase in 1970 consisted chiefly of guaranteed DAC countries are sketched in Annex Table 3. private export credits; a sharp increase in direct Total net flows' increased by more than $1 billion investment was offset by an equal decline in port- in 1970 as compared with 1969. The official de- folio investment. During the past five years, net velopment component of the total, however, private export credits to developing countries rose by less than $200 million, with the result that have almost doubled in annual volume; in 1970 while the share of total flow in the combined they constituted over 30% of total private flow as GNP of the DAC countries remained at about compared with only about 15% in the early 0.i35%, the share of official development assist- 1960s. During the same period, 1965-1970, pri- ance declined further to an estimated 0.34%/eof vate direct investment has averaged about $2.5 GNP. Within the net flow of about $6.8 billion in billion a year, although there has been some year-
*'Net".as here used denotes gross disbursements ~ to-year fluctuation around that mark. The remain- amortizationof principal; further netting out of interest ing private flow, defined loosely as "portfolio payments yields net transfer as shown in Annex Table 9. investment" in DAC statistics, has also undergone a transformation in composition. As indicated in Annex Table 12, the developing countries have, since 1968, raised a declining amount of long- PERU-A grainship, Port of Callao.This port was term capital in the international money markets, improvedand expandedwith the first two of four in part because of the steadily increasing cost as- Bank loans for port development in Peru. Others have sociated with this source of funds. Replacing these helped to build deepwater facilitiesat Pisco,south of Callao, and a new port at Paita, northern Peru's flows, there has been a phenomenal growth m main harbor. other forms of direct private bilateral financing,
47 consisting for the most part of loans from banks The effect of these trends is illustrated in two and other financial institutions, such as insurance different ways in Annex Tables 4 and 10. Table 10 companies and private investment syndicates. shows that in every developing region the grant From a level of about $500 million annually in the element of combined loans and grants committed mid-1960s, net disbursements of this type of fi- has declined since 1965.1 For the most part the nancing have more than doubled, exceeding $1 decline has been steady; for the developing coun- billion in 1970. tries as a whole the reduction of average grant In view of the external debt situation of the de- element has been on the order of 25% from the veloping countries discussed below, it is impor- 1965 level. The fact that disbursements normaMy tant in assessingthese trends to keep in mind the lag behind commitments (the length of the lag terms on which the major components of the depending, of course, on the type of transaction) total flow of capital are extended. Recent research reduces the likelihood of an early shift in the co,m- in the World Bank indicates that for the 80 devel- position of gross new flows to the developing oping countries covered in the Annex Tables of countries. This composition is shown in some de- this Report, the major types of external financing tail in Annex Table 4 for a sampling of recent just described carry representative terms as shown years. The table is arranged to show changes in below (in increasing order of "softness"): the geographic distribution of total disbursements (in the right-hand column), changes in the global AverageTerms of ExternalFinancing Received by distribution of flows by category (in the bottom DevelopingCountries, 1967-1969 rows), and changes in the composition of flows (GrossDisbursements) for each region (in the interior of the table). With Interest Grace Grant respect to the composition of flows by category, Rate Maturity Period Element rset tecmoiino lw (%) (years) (years) (%)() the trends discussed above have resulted in what PrivateFinancial Credits 6.8 6 2 13.9 may be regarded essentially, in global terms, as a Bondsand Other Private 7.0 10 4 14.6 substitution of hard-term private capital flows for PrivateSuppliers' Credits 6.0 9 2 16.1 grants. During the period covered, gross disburse- DAC"Other Official" 6.0 12 3 20.1 ments of private loans and credits have increased MultilateralLoans 5.6 25 5 32.0 from less than a fourth of the total to almost a Sino-SovietBilateral 2.0 16 3 46.0 third, while grants have declined from a third to DAC"Official Development" 2.0 34 8 66.6 about a fifth. Despite moderate increases in bi- Grants - - - 100.0 lateral official loans and loans and credits from (l) Discountedat 10%.The 10% discount rate, though arbitrary, has become multilateral development agencies, the share of customaryin comparisonsof terms ofaid by DAC.The grant" conceptis gross flows from these sources has remained about not intendedto imply that privatecapital flows on commercialterms involve a concessionaryelement. Moreover, when comparingterms Of the same as in 1965. lendingfrom various sources, the interest ratedifferential is not the only These movements in composition have, of criterion, and other aspects,such as aid tying and price differences, shouldbe takeninto consideration. course, affected the geographical distribution of capital flows. Since most of the increase has come To summarize trends in the net flow of re- from private sources, it has been directed primar- sources in these categories in absolute terms ily to those regions where rapid growth is already since 1965: private financial credits have more taking place, where the level of development is than doubled; bonds and other private flows have already relatively high, or where exceptional op- shown little change; private suppliers' credits portunities exist, as in some of the extractive in- have almost tripled; DAC "other official flows" dustries. The poorer regions, particularly Africa have quadrupled; multilateral loans have in- and South Asia, where growth prospects are per- creased by roughly half; net loans from Sino- haps less clear, have been receiving a declinirng Soviet countries are estimated to have declined share of the total gross flows of external capital slightly (and in any casecomprise only about 5% directed to all developing countries. In 1965, of the global net flow); net DAC official develop- Africa and South Asia together accounted for ment assistance loans have increased by about about 47% of the total, while in 1969 the figure 30%; and the flow of grants has increased by had been reduced to about 33%. In absolute about 10%. In other words, while the flow of terms, this has meant a reduction in gross flows resources in those categories with a relatively of almost $1 billion per year for these two re- high concessionary element has grown very slow- gions, while the total to EastAsia and countries ly or not at all for the past few years, growth in 'The figures shown in the final column of Table 10 are ag- most of the "hard term" categories has been gregates for Lhose transactionsior which every element of rapid and, from all indications, appears likely to the terms information necessary to calculate the grant ele- ment is known. Consequently,while rhesedata constitute continue unabated, at least for the immediate a large sample of the total, they understate the actual level future. of commitments received by the countries covered.
48 _''''' ' ating to Indonesia by the DAC governments, al- though such flows to other countries in the area have also increased. i. , / /To conclude, private capital flows and official _ # 4 1 o _ ; export credits have continued to grow rapidly,
'r , while\5' A net"' officialz ,;7/ ,1| development assistance appears t , ] ____{i to have settled onto a plateau of about $7 billion Vfb1I;r;ys 7 _ . annually. The initiative for the supply of external finance thus appears to be shifting gradually from the public to the private sector, with clear impli- cations for both the terms and geographic distri- bution of global flows. As noted below in the section on external debt, debt service owed to
.___ _ .!t Xprivate m+ g creditorsover the next few yearsis already _ - - t 3 iF very high in relation to private debt outstanding, ioi* ,W _ l, and is heavily concentrated in those regions where private capital flows continue to make up a grow- ing share of total receipts of external financing. Recent studies undertaken in the OECD and sev- eral DAC countries indicate that this conclusion would be reinforced if satisfactory data were available on the flow and accumulation of direct investment in the developing countries. These
-7 '' flows are excluded from the general discussion above, but they are, nevertheless, the single most imnportant source of private capital available to I ~~~~~~~thedeveloping countries. On the basis of the in- complete data available, it appears that fully half w$¢,-VX- of the estimated total of $35 to $40 billion in for- eign direct investment assets in the developing areas is in Western Hemisphere countries. The only general exception to the patterns noted for
______. flows of other types of private capital is that the next largest recipient region for direct investment GHANA-Constructing fishing boats.Ghana's inshore in recent years has been Africa, where investment fishing fleet is being modernized and enlarged with in petroleum extraction and mining has been the help of a $1.3 million IDA credit, as part of the expanding rapidly. first stage of a long-term plan to expand the It is difficult, and perhaps risky, to attempt to fishing industry, translate recent capital flow trends into forecasts for the future, even when such trends appear to be firmly established and when such forecasts of the Western Hemisphere increased by more appear to be highly desirable for global develop- than $1.5 billion between 1965 and 1969. ment planning and analysis. About all that can Trends in the composition of flows within re- reasonably be said on this score is that such efforts gions are less clear, but do reflect global develop- as have been made indicate that in the near future ments to some degree. In every region except not much change is to be expected in the patterns Africa grants have declined as a share of gross established during the past five years or so. It floWs. Private loans and credits have continued to must be understood, of course, that such a con- inch upward in relative terms in the Western clusion, tentative though it is, could be summarily Hemisphere, and in 1969 made up half the total of invalidated by any of a number of developments, gross disbursements. A sharp increase in the total particularly on the international political scene. share of private flows has also taken place in the On the other hand, once such a conclusion is Middle East and Southern Europe; the doubling reached, it is not at all difficult to trace out a sim- of the level in South Asia reflects, more than any- ple, mechanical outline of the general direction thing else, a very low starting point. The very of capital flows over the next few years. Explora- large increase in the relative share of official bi- tory work of this sort has been started in the lateral flows in total capital receipts of East Asia World Bank, and the initial results give little cause is in large part a result of the resumption of lend- for optimism. Barring a major reversal of recent
49 trends in the volume, composition and terms of Committee on the Alliance for Progress requested capital flows to the developing countries, little the Bank to assist in a special study of the debt significant increase can be expected over the next of Latin American countries. Responding to this decade in the net transfer figure of roughly $5 growing wave of concern, the President of the billion, excluding equity investments, as shown World Bank committed the Bank's staff to a in Annex Table 9. thorough study of all aspects of the growing in- While projections of this sort are not badly out debtedness of developing countries at the 1970 of line with the measured growth of both capital Annual Meeting of the Board of Governors in flows and debt service over the past decade, such Copenhagen. The study has been completed a slow expansion of the total net transfer of re- and is being transmitted to the Governors. This sources to the developing countries has broad section of the Annual Report draws heavily on its implications for development. Such a flow would findings. fall short of most reasonable estimates of net capi- tal requirements over the next decade, and would fail to meet the minimum objectives for global The PresentDebt Situation capital flows suggested for the Second Develop- Unfortunately, available statistics on external ment Decade, much less the more ambitious debt are not completely reliable: some of the guidelines proposed two years ago by the Com- largest debtor countries themselves have no ac- mission on International Development. Further, curate idea of the total extent of their debt, and in view of the widely disparate individual debt information on debt not enjoying the guarantee and balance of payments situations discussed be- of the public authorities in the borrowing country low, it would appear inevitable that some individ- is so scanty that that type of debt must of neces- ual developing countries would face the prospect sity be excluded from the analysis entirely. Com- of reduced growth rates or debt servicing diffi- parison of reports from creditors and debtors culties. suggeststhat the World Bank's external debt data, which so far are based on reporting by debtors, understate even the public and publicly guaran- The External Debt of teed debt somewhat. Over time, there have been Developing Countries significant improvements in the Bank's data, and The World Bank Group has been concerned further improvements are expected. with the external debt of developing countries It is safe to say, however, that by the end of withtheextrnaldebofdevlopig cunties 1969 80 developing countries had together ac- for many years. In part, this concern has stemmed cml elost$5 bon of ternal p c from the need to protect the Bank's own loan debt' d about$59 billion of external public portfolio, as enjoined by the Bank's Articles of debts (cluding about $13 billion of undisbursed Areet, Fro th ver beinn.ftedn amounts). As Table 6 shows half of this debt was Agreement. From the very beginning of Its lending owdb nyegtcutris hl nteih operations, prospective borrowers have been re- owed by only eight countries, while another eight quired to providequire ththe to BankwithinfomatinBank rovie with informalion on accountedTotal public for almostexternal half debt of outstandingthe remainder. grew at their current debt situation. But more basic has been ucanthe Gru'ocroh average rate of 14% annually between the been the Group's concern for the success of the mi-ite an 199.huh s ne al whole development process, and this has led Bank mid-fifthes and 1969, though, as Annex Table 5 staff to pay particular attention to the debt pros- shows, the rate slowed somewhat in the last two pects of member countries as a regular part of or three years. In some areas, It grew substantially their economic work. faster than average: in South Asia (which had lit- In recent years international interest in this tlIe external debt in the mid-fifties), for example, In~~ yers~' reeninentoa .ntrsnti the rate was 22% annually, and in EastAsia 19%. subject has intensified. The Commission on Inter- Ithe WewsternnHmshr, on th oth hand, national Development, headed by Mr. Lester B. In the Western Hemisphere, on the other hand, Pearson, described theincreseiwhere debt was already substantial in the mid- Pearson, described the increase in debt and debt fifties, growth of debt averaged a comparatively service payments over the last 15 years as "explo- modest 11 annually.of sive," and noted that the "debts already con- Debt service payments also grew at about 14% tracted by many developing countries cast a pall annually between 1956 and 1969 and in the latter over the short- and long-term management of theiecnomis."The Peterson Task Force, set year amounted to $5.0 billion. But it is interesting their economies." The terse him ore se that debt service increasedvery much more slowly up by President Nixon to advise him on the shape in the sixties (9% annually) than in the late fifties of the United States aid program in the seventies, described the present debt burden of many de- 'Includes all debt repayable to external creditors in foreign veloping countriesas "an urgent problem" which currency,with an original or extendedmaturity of more than one year, that is a direct obligation of, or has repay- "endangers continuing imports, investment, and ment guaranteedby, a public body in the borrowing development." In March 1970, the Inter-American country.
50 (29% annually). This deceleration was true in all rise was from about 5% to over 20% in the developing regions with the exception of East same period. Asia, where the growth of debt service accelerated The debt service ratio is, to be sure, a rather slightly in the sixties. The high rate of growth of inadequate indicator of the seriousnessof a coun- debt service in the late fifties may be overstated try's debt problem and international comparisons because of the comparative unreliability of the of these ratios have only limited meaning. Some data for the base year, and in any case reflects countries which have good standing in world cap- rather modest absolute increases from a low base. ital markets are able to retain a high credit rating WAiat can not yet be fully explained is the slow regardless of these debt service ratios. To put the growth of debt service payments in the sixties in problem in its proper perspective, many other relation to that of debt outstanding: it seems to factors must also be considered: the stability and result from a combination of factors, including diversification of a country's export structure; the the lengthening of maturity and grace periods on prospects for future export growth; the extent to loans and credits from official sources and multi- which imports can be reduced without adversely lateral institutions in the early sixties, the gradual affecting current production; the structure of debt lengthening of the average maturity of suppliers' outstanding; the size of foreign exchange reserves credits in recent years, and the multilateral debt and available compensatory financing facilities; renegotiations undertaken by some major debtor and the debt service record of the country. But countries in the late sixties. the debt service ratio does give some indication In a number of developing countries, particu- of the extent to which a country must take ac- larly in Southern Europe, the Middle East,and the count of its external indebtedness in its economic Western Hemisphere, the rate of growth of debt policies, and rapid increases usually point to prob- outstanding in the sixties was little if any higher lems ahead unless gross capital inflows are ex- than the rate of growth of gross national product pected to rise very rapidly or the prospect for (in current prices). In the same areas, debt service export earnings is particularly good. payments grew on the average somewhat more Of the total external public debt outstanding slowly than current-price gross national poduct, at the end of 1969, 54.4% was owed to official and at about the same rate as foreign exchange bilateral creditors, 19.2% to multilateral lending earnings. institutions such as the World Bank Group and In other countries, especially in Asia and Africa, the regional development banks, and only 26.4% both debt outstanding and debt service payments to private creditors (Annex Table 5). Of the debt grew much more quickly than either gross na- to private creditors, a little under half was on ac- tional product or foreign exchange earnings. As count of suppliers' credits, with the balance re- a result, the ratio of debt service to foreign ex- flecting bonds held abroad, debts to financial change earnings - the so-called "debt service institutions, and debts arising from nationalization ratio"-grew rapidly in those countries (Annex of foreign assets. Table 7). In Ceylon, for example, the debt service In certain areas,debts to private creditors were ratio increased from less than 1% in 1960 to over substantially less important than this average 10% in 1970, while in both India and Pakistan the would suggest. Thus the proportion of the total
I
Externalpublic debt outstanding (including undisbursed) and debt service payments of 80 developingcountries, by region Debtoutstdg. Debtservice Avg.annual rate of growthi, 12/31/69 payments 1960-691%) l$ million) in 1969 Debt Debt service (Smillion) outstanding payments Africa 9,184 725 13 13 EastAsia 7,876 436 17 17 MiddleEast 4,883 475 13 5 SouthAsia 13,154 618 17 19 SouthernEurope 6,228 532 13 8 W. Hemisphere 17,618 2,183 11 6 Total 58,943 4,969 14 9 N.B. See Annex Table 5 for list of countries included and qualifying notes.
51 Ratioof debt service due in 1970 to disbursedexternal public debt outstandingof 80 developing countries at the end of 1969, by region and type of creditor (percentages) East Middle South Southern Western Africa Asia East Asia Europe Hemis. Total Official creditors 10.7 6.5 12.8 6.7 11.6 12.3 9.4 Internat'3organizations 9.2 10.1 12.8 6.6 14.8 12.1 10.3 Privatecreditors 21.1 25.6 12.1 24.3 17.7 23.4 21.1 Weightedaverage: all creditors 13.2 12.9 12.4 7.3 13.8 17.0 12.9
owed to private creditors was particularly low in Past Debt ServicingDifficulties and Their Causes South Asia and was only 22.3% in Africa. By con- Since the mid-fifties, eight developing countries trast, debt to private creditors was important in have undertaken multilateral debt renegotiations, the Western Hemisphere (37.9%), the Middle East most on several occasions. The number of coun- (50%), and a small number of individual countries tries is small, but the list includes many of the in other areas. largest debtors among the developing countries. Differences in the relative volume of debt to Moreover, there are at least 12 others that have private creditors is part of the reason why the ratio renegotiated their external debt on a bilateral of debt service to debt outstanding varied from basis. In recent months, Pakistan has suspended region to region, as the figures above indicate. the transfer of debt service payments to sources Only in the Middle East and Southern Europe of official bilateral development assistance,except (where a very small number of relatively prosper- where service can be made in kind, and the gov- ous developing countries have accessto long-term ernment has indicated that it would like to discuss private capital) was the ratio of debt service due the debt burden with creditors. in 1970 to debt outstanding to private creditors In some recent international discussions on the at the end of 1969 less than 20%. external debt of developing countries, the word "debt" has become so nearly synonymous with Such ratios cannot be used to yield a precise "debt problem" that it is perhaps wise to recall measure of the "hardness" of borrowing terms that countries, like corporations or individuals, because of the important effect which the age of boro bcauns ty le itin tr betinter- a loan at date of measurement has on the size of ests to do so. To be able to borrow abroad is an the ratio (the ratio will normally be much lower important advantage, and the size of a country's for a loan which has Just been extended than It external debt reflects not so much the size of its will for one which is nearly fully repaid). But they "problem" as the extent to which foreign nations do suggest what other evidence confirms, namely have been willing to assist by extending it credit. that loans extended by private creditors normally There is nothing intrinsically threatening, there- have substantially shorter repayment periods than fore, in a rapid rate of growth of external debt, and those extended by either official bilateral creditors to argue that many developing countries could or multilateral lending institutions. now make effective use of additional external Over the period 1970-75, developing countries capital is to justify a further increase in their ex- will be required to make service payments total- ternal debt. ing more than $19,830 million on the debt of What, then, is the origin of the debt problem about $43,410 million outstanding to bilateral which has confronted so many developing coun- official and multilateral creditors at the end of tries in the recent past? The causes are numerc;us, 1969-a ratio of required debt service over that and no general discussion can do justice to their six-year period to debt outstanding of 46%. Debt great variety. But two issues are fundamental: the service due on the debt of about $15,530 million productivity with which capital can be employed to private-creditors, on the other hand, is expected by the borrowing country, and the ability of the to total about $12,970 million, a ratio of 84%. In country to "transform" the output of the capital some individual countries - such as Argentina, into foreign exchange available for debt service. Brazil, Mexico, Peru, the Philippines and Yugo- In both respects-and especially in their capacity slavia - the ratio with respect to debt to private for "transformation"-many developing countries creditors is expected to be close to, or even higher are in a more difficult position than developed than, 100%. countries.
52 As far as the question of productivity of capital ply in the world market. It is for this reason that is concerned, there is an abundant supply in many moves currently under way to provide a measure developing countries of projects which yield a of preferential accessto the markets of developed return on capital at least equal to that earned on countries for the manufactured exports of the de- projects in developed countries, or more rele- veloping are so greatly to be welcomed. vantly, to the cost of capital in international mar- There are some developing countries in which kets. But there are many other countries in which, both the productivity of capital and the capacity at their present level of development, the supply to "transform" local currency into foreign are of such projects is limited. Given skilled man- high. 1Thesecountries can afford to borrow large power and adequate infrastructure, the supply amounts of external capital at commercial rates. would increase. But manpower and infrastructure There are many other countries, however, where require substantial investments in schools, medical these conditions do not obtain, and for them the facilities, roads, etc. These, though vital to devel- avoidance of debt servicing problems requires opment, tend to yield a financial return only after that, on average, foreign capital be available on many years. concessional terms. The problem of converting part of the output Annex Table 10, summarized below, indicates of an investment into foreign exchange to service that over the period 1965-69, the grant element1 foreign debt is not unrelated to the availability of of loans and grants provided to developing coun- financially viable projects in the borrowing coun- tries declined from 59% to 45% (at 10% dis- try. But there are some aspects which warrant count rate). Except in the Middle East and the separate consideration. The balance of payments Western Hemisphere, the grant element in loans adjustment mechanism rarely works as smoothly alone remained virtually unchanged in all areas, in developing countries as it does in developed. which is rather remarkable considering the hard- In part, this is because factors of production tend ening of interest rates in world markets over that to be less mobile in developing countries than in period. The decline in the overall grant element, developed, and changing the orientation of men therefore, reflects some hardening in loan terms and machines from one geared to the domestic to the Middle East and the Western Hemisphere, market to one geared to the international is, as a and, even more important, a significant decline in result, a long and difficult task. In part also the the volume of grants provided. adjustment mechanism works less smoothly be- Not reflected in these figures, moreover, are the cause, when the re-orientation is accomplished, additional costs incurred by developing countries developing countries often find that the products because of the conditions imposed on the use to they are most suited to produce for international which the flow of foreign resources can be put: markets are those faced with a low elasticity of thus, most official aid and all export credits are demand, quantitative import restrictions or high "tied" to a particular procurement source, and tariffs. There is an obvious danger in sweeping there are other conditions which sometimes raise predictions about the terms of trade of developing the real cost of aid to recipients. Because these countries as a group, but it does seem clear on the conditions increase the effective interest cost of basis of past experience that the prices of com- modities such as textile fibers, rubber, sugar and 'The "grant element"of a loan is the differencebetween tea are likely to deteriorate rather sharply if de- its nominalvalue and the discountedcost to the recipient veloping countries substantially increase their sup- of the flow of futureservice payments (see page 48).
,.
LoanCommitments and GrantsReceived by 80 DevelopingCountries, 1965-69 LoanCommitments Grantelement Amount Maturity Grace Interest Grant Grants of loansand Year ($m.) (years) (years) 1%) element(/) ($m.) grantsg%1 1965 4981.9 18.8 4.4 4.3 37 2528.1 59 1966 6500.5 21.9 4.9 4.0 42 2354,0 58 1967 7646.0 17.2 4.0 4.6 34 2248.6 50 1968 8684.8 19.0 4.6 4.8 34 2101.1 47 1969 8372.4 18.7 4.7 5.2 32 1884.7 45 N.8.See Annex Tabfe 10 forqualifying notes
53 loans, and reduce the real value of grants, the grant element in the total flow is certainly lower than indicated above. On the other hand,even allowing for thesefac- tors would not greatly alter the impressionthat official development assistancecontinues to be made availableto developing countrieson highly concessional terms. Before adjustment for aid tying, the grant element on such assistancehas averagedaround 80% in recent years. The few countries which have not received official devel- opment assistanceon highly concessionalterms are for the most part countrieswith relatively high per capita income or prospects of rapid export growth. The terms of private loans are also relevant to the debtor country. The grant element in export credits, not to mention bonds issuedby develop- ing countries and commercial bank credits, is clearly very much lower than that in official assist- ance,and for manyof the "middle income" devel- / oping countries which usethese sourcesof funds most heavily-Argentina, the Republic of China, Greece,Iran, Mexico and Venezuelaare examples -the grant element in the total flow is inevitably rather low. However, the terms on which capital hasbeen madeavailable to most individual devel- oping countries havebeen reasonablyin line with the productivity of capital and "transformation" possibilitiesin the countries concerned. This is not to say that inappropriateterms have neverbeen responsiblefor debt servicingdiffi- ELSALVADOR-Spillway gates of the Rio Lempadam. culties.Nor is it to imply thatthe combinationof Thishydroelectric power plant was the firstof five termsand volumeof capitalmade available has WorldBank Croup powerprojects in ElSalvador, terms anf capitlvolume made aailableconstructed with the help of a Bank loan in 1949. been appropriateto the circumstancesof indi- AnIDA creditof $5.6million, signed in fiscal1971, vidual countries. On the contrary, the decline in will help to continuethe country'spower development grants and the stagnation in new loan commit- programto keep abreastof risingdemand. mentshave together produced a sharperosion of the net flow of resourcesinto some developing 1965-69.It is noteworthy that among these19 are countriesin recent years(see Annex Table9), and all the countrieswhich have had multilateral debt haveresulted in a markedhardening of the overall renegotiationsexcept Indonesia,where the aver- terms of the total inflow of capital into those age debt service ratio over the period was 8%. countries. It was these developments, perhaps Another six countrieshave had significantbilateral more than any other single factor, that led to the debt rescheduling.But in few casesis it fully.ap- Indian debt renegotiation in 1968. But by and propriate to speak of the situations which pre- large it seemsfair to say that inappropriateterms cededdebt renegotiationsas debt crises. have not usuallybeen the principal causeof debt In each of the multilateral debt reschedulings, servicingdifficulties. the natureof the difficulty was highly complexand To a major extent, the origins of debt servicing the growth of debt service only one element in difficulties should be sought in the borrowing the picture. Nevertheless,with the exception of country's managementof its economy asa whole. the Indian renegotiation referredto above, it ap- Certainly,only where debt service is a significant pearsthat all fall into one of two categories. item in the borrower's balanceof paymentswill a In some cases,the dominant characteristicwas rescheduling of fixed debt service obligations the undue accumulationof short-term debt in an suggestitself when a balanceof paymentscrisis effort to forestall the consequencesof balanceof occurs.Of the 79 countriesfor which debt service payments disequilibrium, without measures to ratios are given in Annex Table 7, only 19 had an correct fundamentalproblems such as over-valued averagedebt serviceratio of over 10% in the years currency or excessivelevels of protection. 54 In other cases, it seems more appropriate to IBRD and the IDB. At the end of 1955, 54% of speak of a development crisis. Over-ambitious Colombia's external public debt was repayable and inefficiently executed long-range investment within five years; by the end of 1969, that ratio programs were launched and financed by short- had fallen to 25%. The availability of long-term term credits taken up without control. Export capital from official lending agencies is not the credit guarantees and insurance facilities open to sole explanation for this dramatic improvement suppliers in industrialized countries made it pos- in debt structure, as demonstrated by the absence sible for them to act without the prudence which of comparable improvement in the debt structures theevident mismanagement might otherwise have of countries similarly favored by the availability prompted. In the end, a major political crisis put of long-term external capital; without such long- an end to the improvidence, leaving the country term capital, however, the improvement would saddled with a huge and unproductive debt. have been extremely difficult to achieve. The primary responsibility for avoiding debt crises must be that of the developing countries themselves. In a broad sense, good debt manage- The Prospect ment means good economic policies, for no plau- sible level of concessional aid from abroad will be In preparing its study of the external indebted- successful in averting future debt crises if recip- ness of developing countries, the Bank staff de- ients mobilize their own resources ineffectively, voted particular attention to making an assessment invest them inefficiently, or maintain an exchange of the long-term debt servicing prospects of some rate which discourages export production. In a 30 developing countries, together accounting for narrow sense, good debt management implies re- approximately 80% of the outstanding external straint in the assumption of external debts except debt of all developing countries. By their very na- where there is a reasonable presumption that the ture, analyses of this kind are fraught with uncer- borrowed capital will generate production which tainty: a change of political conditions,a monsoon can, directly or indirectly, be transformed into failure, a new mineral discovery, any of these or additional foreign exchange resources over a pe- many less striking events can change a country's riod appropriate to the service of the debt. debt servicing prospects significantly in a very When these policies are followed, there is noth- short period. Though the projections made took ing inevitable about debt crises. The example of into account expected changes in export prices, Colombia is particularly instructive in this regard. they could make no allowance for the possible In recent years, Colombia has allowed its ex- effects of an accelerated rate of inflation in world change rate to depreciate in line with increases in markets, or for substantial changesin foreign trade domestic prices, has provided generous export and exchange rate policies. Despite the difficulty incentives, has pursued an active policy of increas- of generalization in the field of debt servicing ing tax revenues and directing public sector ex- prospects, it appears on the basis of this sample penditures toward productive purposes, and has that most developing countries fall into one of pursued an effective monetary policy. It has also three categories. avoided the temptation to place excessive reliance In the first are the majority of developing coun- on short- and medium-term suppliers' credits. The tries, which, as in the past, should be able to avoid result has been that, despite an increase in Colom- significant debt servicing difficulties in the fore- bia's external public debt from 6% of GNP in 1956 seeable future. In some cases, this is because the to 18% of GNP in 1969, the burden of debt service countries have as yet contracted very little exter- has remained moderate. The ratio of public debt nal debt and have accessto external resources on service to exports of goods and non-factor serv- highly concessional terms (as is the situation of ices rose from about 5o/%in 1957 to 1 2 % in 1963, many African countries). In others, it is because but then gradually declined to 8% in 1969. The debt, though substantial, is effectively managed; ratio of debt service to gross domestic savings where a bunching of debt service payments does showed an even smaller increase over the period. exist, there is ample scope for ameliorating the But the example of Colombia also highlights the situation by replacing short-term debt with debt role which creditors can play. While no amount on longer terms as the former is paid off. In one of creditor support could have avoided debt crises case, Indonesia, it is because the country con- in Colombia if Colombia's own policies had been cerned has already undergone a highly conces- inappropriate, sound Colombian policies would sional debt rescheduling which should enable it have been politically difficult-indeed, perhaps to avoid further debt servicing difficulties. To- impossible -to sustain had that country not had gether, countries in this category accounted for available to it a generous supply of long-term for- almost half the debt of developing countries at eign capital, principally from the U.S. AID, the the end of 1969.
55 The secondcategory includes only a very small formance and debt managementare satisfactory. number of countries, but together they account Another characteristicwhich they havein com- for approximately one fifth of the total debt of mon is that debt servicepayments clearly are, and developing countries. Essentially,these are coun- in the medium-term future can be expected to tries whose developmentwill require the support remain,a significantclaim againsttheir annualfor- of large amounts of externalassistance for a very eign exchangeearnings. Most of these countries long time to come,either becauseof their extreme also have a significant concentrationof debt of poverty or becauseinefficient domestic resource short maturities.Accordingly, they are vulnerable managementand poor externaldebt management to sudden and unexpected shortfalls in foreign in the past havealready created serious debt serv- exchangeavailability, or to sudden increasesin icing difficulties. Largeamounts of externalassist- imports. For this reason,they must all pay particu- ance on concessionalterms and very good policy lar attention to their externaldebt in framingtheir performance on the part of the countries con- economic policies. cerned will be necessaryto avoid the need for This is not to say that thesecountries are likely debt renegotiationfor thesecountries. Were some to get into debt servicingdifficulties. In all prob- such renegotiation to be required, moreover, it ability, most of them will not. Even if difficulties is probable that long-term debt relief on highly are encountered,moreover, they are likely to be concessionalterms would be required. of a temporary nature and to involve only a part The third categoryof countries numbersabout of the country'stotal debt. In somecases, bilateral a dozen but representsabout one third of the negotiationsto refinanceor rescheduledebt serv- total debt of developing countries. For the most ice paymentsfalling due may be all that isrequired. part, they are countries with relatively high or Because of their basically sound underlying rapidly growing GNP per capita and good export prospects,and the relatively high proportion of prospects.For them, the long-term prospectis for their external debt due for repaymentin the im- a fairly high rateof economic growthwithout debt mediate future, debt relief, if required, can ap- problems or dependenceon concessionalassist- propriately be aimed primarily at stretching the ance provided only that economic policy per- "bulge" of debt servicepayments into the future.
56 i a ttCaG . ..&A Page
Se'ected'7conomic Indicators for Developingand industriaiizedCountries-Regional S ...... u mmary ...... r y 58 2 WorldExports by Origin and Destination, 1 9 6 ...... 1 -1 9 7 0 ...... 60 i3 TheF.ow of FinanciaiResources from DAC Countries to 3evelopingCounri,es and MuitiKzteraW Institutions, 1965-1970 O ...... 61 4 Distributionof Loansznd Grants to DeveloaingCountries by Region, Sourceend Category of Transaction(Gross Disbursemants), 1965-1969 .. 62 B 80Develo3ing Countries-External Public Debt Outstanding by Area,1965-1969 . . 63 S ExternalPublic Debt OutsLanding of 80 Developing Countries by Countryand Type of Creditor,Decenber 31, 1969...... 64 7 Service?ayments on ExtefnalPubiic Debt as Percentage of Exportsof Goodsand Services, 1965-1969 ...... 64 6 ProjectedDebt Service on ExternalPublic Debt Outstanding asof December31, 1969, by Type of Creditor...... 66 9 ExternalResource Flows and Service Payments on External PublicDebt, 1965-1969...... 68 AverageTerms of LoanCommitments and Grant Element of Loansand Grants, 1965-1969, byRegions ...... 69 1 Amountof Loansand Grants Received end Grant Element of DevelopingCountries, 1965-1969 ...... 70 12 'oreignand International Bond Issues by Marketand Country of BorrowerEntity, 1966-1970, First P!alf 1971 ...... 76 1S Average!ssue Yield o1 New Foreign and international Bonds, 1966-1970,First -ialf 1971...... 78
57 $(U93@Ecomen¢;, O'C C tr quffOawaEGjooprmg Eno]
Average AnnualReal Growth and Shares in GNP, 1961-1970(Percentages)
Region 1961-65 1966 1967 1968 1969 1970(P)
g ua4 P(ealRates of Glctxth: Total GDP...... 5.1 5.0 4.9 6.2 6.3 5.9 Agriculturalproduction . .2.4 1.9 4.2 3.5 4.0 1.9 Manufacturingproduction . . 8.7 6.9 4.8 9.4 9.8 - Population . . 2.6 2.6 2.6 2.6 2.6 2.6 GDPper capita . .2.5 2.4 2.2 3.5 3.6 3.3 Grossinvestment.... 7.3 3.1 3.5 10.6 10.8 - &hZaTGin IMP: Grossinvestment ...... 1...... 18.5 19.0 18.5 19.2 19.9 - Savings- .16.1 16.5 16.1 16.4 17.3 -
Avemlag Res R(&atesa?Gro:t ToaalGP . .4.4 3.8 2.3 5.2 5.4 5.1 Agriculturalproduction . .2.4 0.9 0.9 3.8 4.2 0.8 Manufacturingproduction.. . - ...... 11.2 2.5 3.7 8.9 10.0 - Population...... 2.4 2.5 2.5 2.6 2.6 2.6 GDPper capita. 1.9 1.3 -0.3 2.5 2.8 2.4 Grossinvestment . . 5.3 8.2 0.5 8.9 12.5 -
SnareS 1,01GVP' Grossinvestment...... 15.7 16.7 17.3 17.6 18.1 - Savings..12.6 14.9 15.9 16.3 16.4 -
AverageAnuat LReatRatss of Growlh: TotalGP . .7.3 7.4 4.5 5.6 7.7 5.9 Agriculturalproduction . . 2.9 11.1 0.8 2.5 2.1 -0.5 Manufacturingproducion.. 11.4 13.1 5.7 8.9 12.4 - Population ...... ---. 1.4 1.5 1.5 1.5 1.5 1.5 GDPper capita ...... 5.8 5.8 3.0 4.0 6.1 4.3 Grossinvestment 11.3 8.1 1.5 9.2 11.7 -- StXarabt GINP G-rossinvestmet . .24.4 24.8 22.8 23.3 24.6 - Savings.... 21.1 21.4 20.0 20.3 20.9 - last esia Aver-agoeAna5 rmeat naits otl G 'AW: Total GODP...... - 5.5 7.1 4.2 8.0 9.1 7.1 Agriculturalprodution.. 3.1 5.0 -1.7 3.7 7.1 2.7 Manufacturingproduction . .8.5 11.2 12.2 16.6 14.0 - Population . . 2.8 2.7 2.7 2.7 2.8 2.8 GDPper tapita p 2...... --- 2.6 4.3 1.4 5.2 6.1 3.2 trossinvestment. 11.3 22.3 6.9 17.2 14.5 -
Grossinvestment . . 15.1 18.9 18.2 19.3 20.6 - Savings ... 11.5 15.8 15.2 15.3 17.1 -
av=g Pman;anwReCt Rat;es ol anssArn TotalGDP. 7.5 5.9 5.5 11.3 8.2 5.1 Agriculturalproduction ...... 5.6 -3.6 12.7 9.5 -2.5 -1.1 Manufacturingproducaion ...... 10.6 7.9 8.0 14.6 17.5 - Popuaion. 2.9 2.9 2.9 3.0 3.1 3.1 GDPper capita. 4.4 2.9 2.5 8.0 5.0 2.0 Grossinvestment. 9.2 2. 0.6 15.9 11.0 - ain: Grossinvestmen .19.0 18.7 18.2 20.0 20.8 - Savings. 14.3 13.9 14.2 15.2 15.0 - Region 1961-65 1966 1967 1968 1969 1970(P)
xvrerEgsAnnua e tGJ9e23S z Gwv: Total GDP...... 3.4 1.9 7.5 5.2 4.5 4.8 Agricultural production...... 0.8 -1.1 8.4 4.6 3.6 3.3 Manufacturing production ...... 9.7 -0.6 1.0 5.3 7.6 - Population...... 2.5 2.5 2.5 2.5 2.4 2.4 GDP per capita ...... 0.8 -0.6 4.9 2.6 2.1 2.3 Gross investment ...... 6.3 -12.2 5.5 9.9 11.0 - S . a in GXP: Gross investment...... 16.3 15.4 14.9 15.7 16.3 - Savings...... 14.1 12.3 12.1 13.1 14.4 -
2v37ags Annsva.'su a Rates GI Gxwtk: Total GDP.4.9 5.3 4.4 5.9 6.3 6.6 Agricultural production.4.0 -0.1 4.6 0.3 4.9 1.5 Manufacturing production ... ,.06...... 5.9 3.8 8.4 8.8 Population.3.0 3.0 3.0 3,0 3.1 3.1 GDPper capita ...... L91...... 2.2 1.3 2.8 3.2 3.4 Gross investment .4.6 1.6 3.9 8.9 8.1l
Gross investment . . . 19.3 19.0 19.0 19.4 19.7 - Savings...... 18.2 17.8 17.5 17.2 17.9 -
r5verSgIa AlE, azie Rhatssot Growth: Total GDP...... 5.2 5.6 3.6 5.5 4.8 3.4 Agricultural production.1.8 2.0 6.1 2.7 0.2 -1.5 Manufacturing production.6.1 7.5 2.5 6.7 7.2 - Population 1.2 1.1 1.0 0.9 1.0 1.0 GOP per capita ...... 3.9 4.5 2.6 4.5 3.7 2.4 Gross investment.6.7 5.7 0.6 8.2 7.9 - SkV9 9"T"2"3.X: Gross investment .21.4 22.0 21.3 21.6 22.3 - Savings.21.9 22.6 21.9 22.2 22.8 -
NOote:Estimates for the GOPot the followingcountries are included in this table: DEVELOPINGCOUNTRIES -74 countries and territories covering approximately I6% of GDPof all developing areas with market economies: Africa: Algeria, Angola, Cameroon, Demornatic Republic of Congo, Ethiopia, Gabon, Ghana, Ivory Coast, Kenya, Libya, Malagasy Republic, Malawi, Mali, Mauritius, Morocco, Niger, Nigeria, Rhodesia, Senegal, Sudan, Tanzania, Togo, Tunisia, Uganda, United Arab Republic, Upper Volta and Zambia. These countries account for 91% at the aggregateGDP of the region. South Asia: Burma, Ceylon, India and Pakistan (Coverage100%). East Asia: China, Hong Kong, Indonesia, Khmer Republic, Korea, Malaysia, Philippines, Singapore, Thailand and Viet-Nam (Coverage 100%). a Southern Europe: Cyprus, Greece, Portugal, Spain, Turkey and Yugoslavia (Coverage100%). Western Hemisphere: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela (Coverage99%). Middle East: Iran, Iraq, israel, lordan, Lebanon and Syria (Coverage78%). INDUSTRIALIZEDCOUNTRIES North America: Canadaand United States. Western Europe: Austria, Belgium, Denmark, Finland, France, Germanty, Iceland, treland, Italy, Luxembourg, Netherlands, Norway, Sweden, Switzerland and United Kingdom. Other industrialized countries: Australia, Japan, New Zealand and South Africa. (P) Preliminary. Source: World Bank.
59 Wo,rldExports by OHr&nan DestinatUo., 196141970 Table2
(F.o.to.IViIlians of US dotlars)
Developingmarket erconomies Eapentsto Developed Centrally 0 market Latin planned _::portsfroam WorldM ecrnomrnos(k) toat(') America Africr Asia economies
-961-65, anna' Evg .T... 157,508 105,138 33,116 8,634 7,028 15,018 18,148 :966 .. 203,400 139,340 40,750 :0,410 8,180 19,240 21,960 1'7.2140 ...... 214,11W t47,4601.. 41,760 10,600 8,330 19,700 23,450 68 .239,570 . 165,890 46,280 12,160 8,920 21,84.0 25,400 i965. 272,590 191,ll0 51,670 13,290 10,030 24,550 27,790 1S70(? .312,OIC 220,310 57,700 15i,130 i,810 26,220 31,550
D'Sualope39d may-rkra E" O5[d 1961-65, EnmJa 2vg. . 10,862 78,580 23,886 6,768 5,408 10,214 3,986 SW8 .141,470 105,680 29,540 8,080 6,230 13,380 5,760 67 ...... 149,240 112,170 30,280 8,190 6,300 13,850 6,270 1968. 167,670 126,920 33,690 9,380 6,860 15,400 6,510 169.193,140 147,800 37,460 '0,210 7,670 17,140 7,140 1970(?3 . . .. 224,700 172,670 42,840 11,880 9,170 19,000 8,470
1961-65,anutu avg. 31,854 22,876 6,840 1,170 1,056 3,590 1,810 S66 . .. .3740 28,080 7,970 1,520 1,230 4,160 2,335 '967 . .40,060 29,380 8,130 1,530 1,220 4,200 2,150 9 .8 . .44,420 32,750 3,050 1,820 1,310 4,630 2,240 6 . S9.49,640 36,270 10,260 2,060 1,510 5,350 2,600 1970 0N!...... 54,160 40,230 10,580 2,190 1,640 5,340 2,780
A1-65, annuli au., S,864 7,384 1,776 810 86 89 686 966. 11,650 8,60O 2,160 1,170 43 149 875 67.. . 1',700 8,650 2,270 1,210 63 130 790 1968.2,'90 . 9,020 2,430 1,380 69 167 760 A169.13,500 9,920 2,810 1,600 53 206 780 1 ¢D...970 . 14,750 10,980 2,970 1,700 87 214 7093
1961-65,ennual lig... 6,422 5,208 774- 3S 454 273 404 19,66.8,220 6,620 S50 53 550 330 5S0 1967.8,420 6,750 940 42 540 320 520 968. 9,790 7,910 1,050 53 590 360 600 1969 . 11,320 S,210 1,150 69 660 365 740 19704ID...... ,. 12,630 10,260 1,290 80 730 385 840
1I61-65,annutz gg .. 3,788 8,846 3,96 20 464! 3,210 724 16S.16,870 11,210 4,570 220 595 3,645 894 1967.17,85>0 I2,260 4,610 201 580 3,710 825 1968.. , 70 13,910 5,040 238 610 4,055 890 1969.22,320 15,050 5,S940 290 765 4,735 1,070 1970 .. 24,170 16,810 5,960 300 795 4,695 i, 140
1961-65,Znnu t .g. 18,780 3,682 2,3S4 690 482 1,218 12,350 6.. . 23,200 5,580 3,230 810 725 1,700 -13,800 967.24,89 5,0320 3,360 880 830 1 .5,0305,6 1 ... 26,980 6,220 3,540 960 760 1,810 16,60 169.29,750 6,940 3,960 1,020 860 2,060 18,060 1970(3 ... , ... 33,150 7,940 4,35051,080 990 2,24C 20,300
n' Includes mistelianeous items notbrokes down by destination. ncrInciudee developlag Countries of Southern Europe. rn Includes Caribbean anid Pacific Islands. Preliminary SGurca:United Nations. The Flowof FinancialResources from DACCountries( 1) to Table 3 DevelopingCountries and MultilateralInstitutions, 1965-1970 (Billionsof US Dollars)
1965 1966 1967 1968 1969 1970(P) Net Disbursements Total,Official and Private ...... 10.36 10.28 11.24 13.06 13.68 14.71 TotalOfficial ...... 6.17 6.45 7.01 7.05 7.21 7.95 OfficialDevelopment Assistance ...... 5.87 6.07 6.62 6.32 6.62 6.81 Grantsand Multilateral ContributionS( 2 ...... 4.07 4.08 4.33 4.02 4.31 4.41 BilateralLoans ...... 1.80 1.99 2.29 2.30 2.32 2.40 OtherOfficial Flows ...... 0.30 0.38 0.40 0.72 0.58 1.14 TotalPrivate(3) ...... 4.18 3.83 4.23 6.01 6.47 6.76 Directand Portfolio Investrent ...... 3.43 2.70 3.22 4.41 4.51 4.59 PrivateExport Credits ...... 0.75 1.12 1.01 1.60 1.96 2.17 VolumeIndicators (Net Disbursements) TotalFlow as Share of GNP(%o) ...... 0.78 0.71 0.72 0.78 0.75 0.74 TotalOfficial Flow as Share of GNP(5') ...... 0.48 OA5 0.46 0.43 0.39 0.40 OfficialDevelopment Assistance asShare of GNP(%),. 0.44 0.42 0.43 0.38 0.36 0.34 PrivateFlow as Share of GNP(%o) ...... 0.31 0.26 0.27 0.36 0.36 0.34 Terms Indicators(Commitments) Grantsas Share of TotalOfficial Commitments (%o) ...... 60.9 62.2 56.1 51.4 59.0 n.a. WeightedAverage Maturity of OfficialLoans (years) ...... 22.6 25.1 24.0 26.0 24.3 n,a. WeightedAverage Grace Period of OfficialLoans(years) .>. 4.6 5.8 5.5 6.0 6.1 n.a. WeightedAverage lnterest Rate of OfficialLoans (%o).. ._ 3.6 3.1 3.8 3.6 3.5 n.a. GrantElement of TotalOfficial Commitments (%Y 4)...... 77.0 81.0 76.0 75.0 79.0 n.a,
(1) Australia,Austria, Belgium, Canada, Denmark, France, Germany, Italy, Japan,Netherlands. Norway, Portugal, Sweden, Switzerland, UnitedKingdom, and UnitedStates. (>) lncluding "grant-like" flowsdenominated in recipients'currencies. (r) Excludinggrants by privatevoluntary agencies, which in 1970totaled an estimated$840 million from all DACcountries. (4) Discountedat 10%. (P) Preliminary Note:Items may not addto totals dunto rounding. Source:OECD
51;- Distribution of Loans and Grants to Developing Countries(") Table 4 by Region, Source and Categoryof Transaction (Gross Disbursements), 1965-1969 (Percentages)
PrivateLoans and Credits OfficialBilateral Loansand Credits Multilateral Total Su"ppliers Other2 Official DAC Other Loarisand (Percent Regionand Year Credits Private() Total Grants Countries CountriesQ) Total Credits by Region)
2965...... 9 3 12 48 22 22 33 7 22 1S67- .... l 1 1...r9 42 24 7 31 8 17 196S9....-.- 7 3 10 53 18 6 24 13 16 East Asia 95 ...... 20 16 36 41 13 3 16 7 10 1967...... 26 4 30 33 31 - 31 6 12 1969...... 27 8 35 25 33 - 33 7 ' 5 Wlddlz East 1965 ...... 9 20 29 36 15 15 30 5 7 1967...... 16 26 42 13 26 17 43 2 8 1960...... 14 25 39 9 29 17 46 6 8 SoulshAsia 1965...... 4 1 5 35 38 9 47 13 25 1967...... 6 1 7 31 38 10 48 14 24 1969. 10 . 11 18 48 10 58 13 17 sct?ezarn zurvpe 1965...... 19 6 25 9 51 2 53 3 7 1967...... 19 12 31 5 45 3 48 6 8 S969.. 6 28 34 2 44 6 50 14 !0 V4792;t07, Ha -E SL ~0re;3er I965...... 15 32 47 21 20 1 21 12 29 1I67...... 18 31 49 15 22 1 23 3 31 1969 ... 18 32 50 18 20 - 20 12 34 70"a3 (Percent
1965 ...... -. 11 i 2 23 33 27 7 34 10 100 1967...... 14 13 27 26 30 6 36 11 100 1969. .... 14 16 30 22 31 5 36 12 i00
(a) Tht same80 countriesincduded In TableS. (1V Mainlyloans from privatebanks, bands and otherfunded debt. (3) MainlySino-Soviet countries. Source:World Bask
62 80 DevelopingCountries-External Public Debt Outstanding Table 5 by Area, 1965-1969 (Millionsof US Dollars)
East Middle2 South Southern4 Western Africa Asia(') East( ) Asiaf') Europe ') Hemisphere5) Total Total Debt Outstanding End of Year 1965...... 6,297.0 3,903.4 2,307.4 9,015.3 4,103.5 11,905.2 37,531.8 1966.7,322.1 4,306.0 3,004.9 10,699.1 4,345.9 13,048.9 42,726.9 1967. 8,231.4 5,251.5 3,741.8 11,488.5 5,081.8 14,645.8 48,440.8 1968.8,803.4 6,309.0 4,354.6 12,837.1 5,595.0 16,358.9 54,258.0 1969-Total.9,183.5 7,609.2 4,883.2 13,809.0 6,228.2 17,618.3 59,331.4 -Disbursed.7,010.3 5,542.6 3,882.7 11,112.6 4,619.9 13,566.9 45,741.0 -Undisbursed.2,173.2 2,060.6 1,000.5 2,696.4 1,608.3 4,051.4 13,590.4 Debt Outstanding December 31, 1969 By Typeof Creditor BilateralOfficial .5,492.5 4,022.0 2,035.5 9,977.2 3,550.2 6,722.1 31,799.7 Multilateral.1,641.9 1,217.8 403.7 2,703.9 1,150.5 4,226.0 11,343.8 Private Suppliers.1,083.2 1,790.1 731.0 975.2 496.2 2,850.4 7,926.1 PrivateBanks. 285.1 246.2 738.9 143.0 666.8 1,537.5 3,617.5 Others ...... : 80.5 333.1 974.1 9.6 364.5 2,232.3 4,644.1
"v Doesnot include publicly-guaranteed private debt of Philippinesestimated at$600 million in 1969. t2) Doesnot includeundishunsed portion of the debt of Israel. (3) includessome non-guaranteed debt of the privatesector of India. " Doesnot include non-guaranteed debtof the "socialsector of Yugoslaviacontracted after March31,1966 amounting to $960million In 1969. '5) Dehtoutstanding of Brazilincludes some non-guaranteed debt of the privatesector ta suppliersand excudes the undisbursedportion of suppliers'credits ond of bilateralofficiallons exceptforthose owed to the U.S. Government. Note:Includes the followingcountries: Africa: Botswana,Burundi, Cameroon, Central African Republic, Chad, Democratic Republic of Congo,Dahomey, Etbiopia, Gabon, Ghana, Guinea,Ivory Coast, Kenya, Lesotho, Liberia, Malagasy Republic, Malawi, Mali, Mauritania,Mauritius, Morocco, Niger, Nigeria, Rhodesia, Rwanda,Senegal, Sierra Leone, Somalia, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, United Arab Republic, Upper Volta, Zambia, plus the EastAfrican Community. EastAsia: China,Indonesia, Korea, Malaysia, Philippines, Singapore, Thailand. MiddleEast. Iran, Iraq,Israel, Jordan, Syria. SouthAsia: Afghanistan,Ceylon, India, Pakistan. SouthernEurope: Cyprus, Greece, Malta, Spain, Tarkey, Yugoslavia. WesternHemisphere: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Honduras,Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago,Uruguay, Venezuela. Itemsmay not add to totalsdue to rounding. Source:World Bank
63 Entena~nbftDeb OustandOg of 80 Developing Countries Table6 Service Payments on ExternalPublic Tabte17 byCunr adiTyp of Crdor Deomber 31, 1969 Debt as Percentage of Exportsof Goods and Services, 1965-1969 (Millionsof US dollars)
inceludingujrlsbyurseFd Area/Country 1965 1966 1967 1968 1969
Area Disbursed Blilateral Multi- PiaeAfric;a Country only Total nfficial, lateral Private Botswana('). ... 3.5 3.3 5,4 6.7 3.3 Suppliers banks other Burundi...... 2.3 2.2 2.5 3.0 3.6 Afia--TWotal.. 7,010.3 9135 5,492.5 1,641.9 1032 285.1 680.5 Cameroon(1>,.. _ 3.2 4.0 4. 3.5 3.3 Botswana.. 10.~~~~~-2 102M 5. .6 - 12 CentralAfrican Republic(U. n.a. n.a. n.a. 4.2 5.5 Buruntdi...... 6.4 8.5 1.4 5.7 1.5 - ' ...... n.a. n.a. 2.9 11.5 9J.9 Cameroon... _ ... . 88.6 183.0 119.2 57.2 6.6 - . Congo,Democratic Republic 1.4 5 1.8 1.9 2.9 3.1 CentralAfrican Republic... . 19.t6 27.7 18.9 4.4 4.3 - I Dahomey(). 4.9 6.3 5.2 7.0 3.8 Chad._ ...... _ __ 33.4 50.0 33.3 7.1 8.1 - 1>6 Ethiiopia.4,9 7.6 9.5 9.2 10.6 Congo,Democratic Republic .. 282.0 328.1 119.8 12.3 63.6 -. 132.3 Gabon('.~5.0 5.4 5,8 8.0 3.2 Dahomey.~~.. ..__.... 33.3 43.6 29.0 4.6 9.0 1.0 0.1 Ghana...... 18.8 6.5 7.2 12.3 9.9 EastAfrican Community . .. 179.1 219.4 48.5 95.1 - 0,6 75.1 Guirtea(...... n.a. n.e. n.a. 8.9 n.a. Ethiopia.~_~.. ... 150,8 254.9 117.9 113.6 11.3 12.1 - IvoryCoast...... 4.2 4.7 7.0 5.8 4.9 Gabon...... 75.1 93.3 39.7 37.9 11.1 -. 4.6 Kenya(2n.5.5 5.7 6.8 6.9 5.8 Ghana...... 554.4 637. 268.0 66.5 303.3 - - Lesotho,....._ __ 1.4 2.4 1.2 n.. ua. Guinea...... 249.6 308.6 216.3 64.5 27.7 - - Libieria(l'..,~ .... 8.6 6.0 6.0 6.8 6.4 IvoryCoast...... __.. . (1) t) "1,() 1 1 1 MalagasyRepubtlico.n.e i~. 3.8 8.7 6.1 5.8 Kenya...... 265.8 368.8 233.1 74.6 7.1 4.9 49.1 Malawi,.5.5 5.6 5.7 6.3 5.3 Lesotho. .,_..... __ 7.1 7.5 2.6 4.1 - 0,8 Mai._....-.8 1 6 45 2. Liberia...__. .. _ ... 159.9 175.6 128.3 7.9 30.0 9.5 Marlt.1)...... 1.8 11.8 16.1 14.7 232 MalagasyRepublic . .... 88.6 120.0 82,65 27.5 5.2 0.6 Muiai".. . , . . Malawi...... 84.5 147.9 102,9 27.5 0.2 1.1 16.1 Mauritius...... 2.3 3.2 3.5 6.6 3.1 Mali...... 174.1 206.5 196.0 9.1 1.0 0.3 __ Morocco...... _ 4.7 6.8 6.6 7.2 8.5 Mauritania.....29.2 42.7 20.3 12.5 9.2 0.7 () Nigerl)..... 1.7 1.9 1.5 3.6 7.0 Mauritius...... 29.8 33.1 19.0 5.9 - 2.5 5.6 Nigelria. 3.3 5.4 5.1 6.2 6.2 Morocco...... 568.2 787.8 555.2 137.7 60.0 - 34.9 Rhodesia... 4.4 1.9 3.2 3.7 2.7 Niger. _ ...... 21.4 63.9 35.6 7.6 - 20.6 (2) Rwanda')...... n.a. n,. 6,8 2.5 n.a. Nigeria...... _ _.. 523.6 633.9 3010 235.7 63.1 18.7 15.4 Senegal(')...... 1.9 2.1 2.3 2.3 3.4 Rhodesia...... _..... 249.8 249.8 44.1 48.1 - 2.7 154.9 SierraLeone,.....6.1 7.6 8.7 6.1 7.0 Rwanda ...... _ .... 1.8 2.4 2.1 - 0.3 - - Somalia,...... 1.4 2.1 2.1 1.9 1.4 Senegal...... 58.2 98.1 75.4 22.5 - (2) 0.2 Sudan...... _._ 5.7 6.5 5.4 7.1 9.3 SierraLeone ...... 54.6 61.1 26.6 7.3 21.2 1.3 4.8 Swaziland(O.2 ..... 3.9 3.4 3.4 3.3 2.7 Somalia...... 81.7 97.2 88.2 9.1 - - - Tanzania()...... 4.4 3.7 4.8 6.7 6.3 Sudan...... 264.4 305.1 128.9 135.3 15.2 23.6 2.1 Togo...... 2.3 1.3 2,4 4.0 n.a. Swaziland...... _ 27.7 28.1 8.8 9.1 8.4 1.8 - Tnsa,...... 42 2. 24 2. Tanzania...... 167.6 274.9 156.9 59.3 4.4 24.9 29.4 Tuia7. 142 01 2.4 04 Togo...... 33.5 42.2 33.1 3.7 54 - 2) Uganda()...n.a. 4.4 5.5 8.4 9.7 Tunisia...... (1) 732.6 419.7 110.8 193.1(3) _(3) 9.0 UpperVolta(')...... _ 3.4 3.7 41.5 7.5 8.7 Uganda...... 102.7 173.1 113.3 39.6 -- 20:3 Zambia.....~..... _ 4.2 2.1 2.3 2.7 2.0 UnitedArab Republic...... () (1> (i) (I) () (Ii () UpperVolta...... 20.4 23.1 22.0 0.8 -. 0.3 (2) EastAsia Zambia...... 199.7 275.6 68.4 99.7 5.9 10.0 91.6 China...... 2.9 3.6 3.2 3.3 4.3 Indonesia...... 11.0 9.1 7.0 9.1 5.9 E~astAsia-T=otal ...... 5,548.6 7,609.2 4,022.0 1,217.8 1,790.1 246.2 333.1 Korea ...... 2.7 3.6 5.6 1.5 12.4 China...... 463.3 817.9 368.4 206.1 23.9 36.2 3.3 Malaysia...... 1.! 1.4* 2.1 2.1 2.2 Indonesiie...... ,_ 2,452.0 2,984.8 2,459.7 67.0 251.0 11.8 195.3 Philippinesr3)...... 5.3 6.3 7.2 5.3 5.5 Korea...... 1,474.3 2,124.8 633.3 144.6 1,242.2 79.9 24.8 Singapore...... 0.1 0.1 0.1 0.3 0.4 , n.t..., ____ ~~~~~~~~~~~~~~'7~~~~~~~i 2247 . .~~~~~~~97.5- ' L..i~i .TTT~ _~; .. ~... L . . _, --. _1 -L-- .k-. ~ I-:.as'. -,.,I - __ - - - - -_ _ __ SirlgaporC ~~~~~~~~81.1206.9 89.2 116.4 1.4 - -ran(4 ..... 8.6 7.6 7.8 10.5 13.8 Tfhailand...... 280.5 388.6 123.6 257.0 8.0 - - I raq...... 0.5 0.8 0,8 1.4 1.9 Vt']iddlIL,ast.- --Total ..... -3,882.7 4,883.2 2,035.5 403.7 731.0 738.9 974.1 Israel...... 21.4 20.3.- 14.5 16.2 16.5 Iran...... 1,596.6 2,520.5 1T,193.0 2-77.1 1,022.4 (3) 28.0 Syrian.1...... 0na 1.4. 1. .5 1. 8.8 Iraq ...... 233.5 245.4 (5) (5) (5) (5) ( yi..a .. 6.). . 0 Israel...... 1,715.0 1,715.0 (5) (5 5 5 5 SouthAsia Jordan...... 115.6 149.5 (5) (0() (5) () Afghanistan...... 7.9 8.9 16.6 16.6 20.0 Syria...... 221.8 252.8 138.1 8.5 50.0 - 56.2 Ceylon...... 2.0 2.8 3.4 7.1 8.3 South Asla-ToU5 ...... 11,112.6 13,809.0 9,977.2 2,703.9 975.2 143.0 9.6 lndia(5)...... 16.5 19.8 22.6 20.3 22.0 Afghanistan...... 492.6 649.4 640.8 8.5 - - __ Pakistan...... 11.0 12.9 16.8 19.4 21.7 Ceylon...... 303.3 469.6 311.0 83.4 63.9 4.7 6.7 SouthernEurope India7)...... 7,607.5 8,910.5 6,407.0 1,743.0 674.7 82.8 2.9 Cyprus...... 1.5 1.4 2.3 2.0 1.9 Pakistan...... 2,709.2 3,779.5 2,618.3 869.1 236.6 55.5 - Greece...... 3.1 3.5 4.6 4.4 4.6 Sotzthow'iI1.ropre.-.Total 4,619.9 6,228.2 3,550.2 1,150.5 496.2 666.8 364.5 Malta...... 0.5 0.8 1.2 1.2 1.4 Cyprus...... 31.5 49.7 5.1 33.0 10.3 - 1.3 Spain...... 2.1 1.8 1.8 2.4 3.1 Greece...... 659.5 769.6 240.5 82.5 88.1 150.3 20812 Turkey...... 24.5 17.6 14.7 13.9 16.7 . Malta...... _._ 25.6 25.6 20.7 4.9 - - - Yugoslavia(6)...... 14.0 13.1 12.1 13.0 14.6 Spain...... 1,063.6 1,483.7 675.0 228.8 138.6 333.9 107.5 WesternHemisphere Turkey...... 1,640.6 2,181.3 1,645.6 462.6 12.0 41.9 1933retn .. _ - 0. 53 2. 72 2. Yugoslavia(,...... _.. . _ 1,199.1 1,718.3 963.4 338.6 247.3 140.7 28.3 Aroeninia.20...... 1 25.3 26.8 27.2 23.9 Wasteri o mizpha.=.Total 13,566.9 17,18. 6,722. 4,226.0 2,80. 1,537. 2,282.3 Brazil(5',...... _ n.a. n.a. n.a. 20.9 17.9 Argentina. ..._ ... 1,788.2 2,323.5 558.9 481.2 749.3 124.7 409.4 Chile...... _.....15.3 13.2 12.4 16.0 15.9 Bolivia...... 334.1 419.3 255.5 55.0 38.6 2.8 67.4 Colombia..... _.._ 14.4 16.5 14.0 12.8 11.2 9 . Brazil() ___ _ - - .... 2,729.6 3,522.2 1,989.2 720.3 466.0 - 346.7 CostaRica ...... 10.3 12.0 11.9 12.1 10.5 Chile...... 1,734.3 2,227.0 1,192.6 225.9 364.3 144.4 299.8 DominicanRepublic ...... 19.3 12.6 7.2 7.8 8.7 Colombia...... 1,079.0 1,515.9 659.7 634.4 141.3 (5) (5) Ecuador...... _ 6.3 6.4 6.3 8.3 10.4 CostaRica ...... _... 119.9 190.6 61.3 84.6 1.5 (5) (5) ElSalvador,. .. _ .. 3.6 3.6 2.6 2.6 3.2 DominicanRepublic...... 184.4 271.5 215.8 28.6 8.4 0.4 18.4 Guatemala..... _.._ 5.0 5.5 9.8 8.5 8.7 Ecuador...... 179.0 277.6 112.0 68.2 86.9 7.2 3.3 Guyana.. ,,~.....4.1 3.9 4.3 3.5 3.5 ElSalvador...... 75.2 110.4 35.2 63.1 - 11.1 1.0 Honduras,...... _. 2.4 2.1 2.0 1.7 2.3 Guatemala... ~...... 91.1 153.5 36.9 56.0 1.2 34.7 24.6 Jamaica...... _ 1.9 2.0 2.5 3.3 3.1 Guyana,...... _ 65.8 113.9 94.8 10.8 0.2 0.6 7.4 Mexico...... _..24.7 21.2 21.5 25.1 22.4 Honduras...... _...., 64.6 126.4 38.5 82.8 5.0 Niagu...... 43 53 667 9. Jamaica...... 121.9 153.9 28.5 42.0 - 19.8 63.6 Niagu4. 53 61 67 91 Mexico..... _..2,963.5 3,511.3 716.2 889.4 491.0 711.9 70219 Panama...... 2.5 2.3 2.3 2.5 2.5 Nicaragua..... _ ..... 119.2 216.6 75.1 77.8 24.4 37.7 1.6 Paraguay.. _..__.. 6.6 5.4 7.2 9.4 8.8 Panama...... 122.3 161.8 87.9 10.6 10.3 23.0 2919 Peru_....._..._ 6.8 9.7 10.6 22.0 13.8 Paraguay...... 81.7 120.0 56.5 39.5 23.2 0.5 0.3 Trinidadand Tobago...... 1.9 2.0 1.9 1.5 2.1 Peru...... 858.1 1,117.1 234.7 184.5 388.4 142.2 167.3 Uruguay...... 6.7 12.3 20.3 19.2 18.8 Trinidadand Tobago...... _ 75.8 101.4 26.5 42.4 4.7 13.1 14.6 Venezuela...... _ 1.6 2.7 2.0 2.0 2.0 Uruguay...... 264.9 320.1 110.7 84.2 25.2 80.5 19.6 Venezuela...... 514.3 664.3 135.5 344.6 205 122.9 40.7 (1) Exportsof goodsonly. GRANDTOTAL ...... 45,741.0 59,331.4 31,799.7 1,4. 7921 3675 4641 )includes one-thirdof the debt serviceof (he EastAfrican community. ______7_92_1_ 3617. 4,6441 I'(l), Excludesdebt service on publicty.guaranteed debt of the private sector. (0) Consortiumexports of oil valuedat postedprice. () Anestimate for this cousntrywas included in the areatotal. (5) I ncludesdebt service sor some non-guaranteed private debt. '2) Lessthan $50,000. (6) Excludesdebt serviceon non-guaranteeddebt of the "socialsector" contractedafter (a) Privatebooks included in suppliers;no breakduwoavailable for this couintry. March31, 1966. (4) Doesfsot includepublicly-gtearanteed private debt estimated at $600million. Note:The debt serviceratio is, by itself, a ratherinadequate indicator of the seriousness (s) Nobreakdowni available for this country.Estimates ore iscluded in the areatotal. ot a country'sdebt problem.Many other factorsmust also be considered,such as the ,6) Doesnot includeunibusd stability and diversificationof the country'sexport structure,the prospectsfor future un,.rs,.srseu., .,. ., ~~~~~~~~~~~~~~~~~~~gruwth,the extentto which importscan be reducedwithout adversely affecting current s U4 icludesle somenon-gnaranteed debt of th,e privatesector. produc;tion,the time-profileof thecountr' debtoutstanding, the sizeof foreignexchange rq (a) Doeosnot includenon-guaraateed debt of the "socialsector" contracted after March31, 1966amounting to $960million, reservesand availablecumpensatory floanc.,iJng facilities, and the debt servicerecord of (9) I ncludessome non-guaranteed debt of the privatesector to suppliersand excludes the undisbursed portionof supopliers'credits and of the country.for this reason,international comparisons of debt serviceratios have sifily bil ateralofficial loaos except for thoseowed to the U.S.Gnvernment. limited meaning. Note:Includes the samecountries as Table5. Itemsmay notadd ts totalsdoe to rounding. Suc:WrdBn Source:World Bank ProjectedDebt Service an Externat~Public Debt Outstanding as of December31, 1969 by Typeof Creditor Table,8 (Millionsof US doflatsf
Deb,out- Area stonding Pt Jocted Typeof crUio n-tn disbursed) Dem31, 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 Africa Bilateralofficial.. ,...... 5,492.5 450.7 467.4 464.8 442.7 427.9 4280~O 387.8 361.0 334. 305.7 277.5 1,641. 85A4 96.5 103.1 111. 119.5 108. 107.8 106.8 102.5 102.4 103.7 Private Suppliers. 1,083.2 199.8 176.9 157.8 130.5 109.0 88.9 69.5 56.1 45.6 29.2 19. PrivateBaniks. .... 285.1 51.4 51.2 514A 41.2 32.4 2427 18.5 125 10.8 8.4 74 Other. .... 680.5 139.7 63.5 65.1 64.7 62.2 56.2 43.8 35.9 49.4 41.7 36. Total.9..., 183.5 926.2 855.5 8422 790.8 751.0 698.1 627.5 572.4 543.1 487.3 .443.8 EastAsia Bilateralofficial ...... 4,022. 221,0 296.7 290.3 308.3 311.6 325.7 336.3 332.4 337.2 276.7 248.1 Multilateral.1...... I217.8 60.2 79.6 94.6 105.1 109.7 110.9 112.4 110.9 108.3 106.110. Private Suppliers...... 1,790.1 348.3 349.7 276.3 230.5 193.3 149.7 125.7 104.3 69.7 45.6 23.1 PrivateBanks.,...... 246.2 73.6 63.0 56.4 25.7 21.8 11.2 8.9 5.6 4, 3.2 2.2 Other...... 333.1 46.4 25.3 24.8 44.8 32.4 16.5 21.8 12.2 12.0 9. 10.3 Total...... 7,609.2 749.4 814.4 741.6 714.5 668.9 614.0 605.2 565.4 532.0 441.2 387.2 MiddleCast BilateralofficiaL, ~ ...... ~ .. 2,035.5 192.9 208.1 211.7 208.1 204.3 188.7 152.8 129.0 116.3 98.2 89.6 Multilateral...... 403.7 35.2 40.5 44.7 46.0 45.8 46.6 42.1 34.5 32.2 31.3 29.4 Private Suppliers...... 731.0 122.8 131.1 122.4 108.2 82.8 63.9 46.8 31.2 17.8 9.8 4.9 PrivateBanks ... 738.9 87.4 102.6 113.9 126.7 104.9 93.9 50.0 33.2 29.8 26.8 21.8 Other...... 974.1 42.9 45.6 50.0 54.1 43.6 39.0 73.5 86. 93.6 207.4 136.8 TotalI...... 4,883.2 481.3 527.8 542.6 543.1 481.3 432.2 365.2 314.4 289.7 373.5 282.6 South Asia Bilateralofficial...... 9,977.2 548.9 593.2 626.2 635.7 636.8 645.8 621.3 607.8 594.1 534.0 505.2 Multilateral...... 2,703.9 140.2 143.6 143.3 141.9 138.8 134.3 130.0 143.0 137.5 110.9 102.5 Private Suppliers...... 975.2 155.9 164.9 154.3 142.8 127.9 114.5 100.6 81.0 56.2 38.8 18.6 PrivateBanks...... 143.0 28.6 36.7 28.0 24.4 15.3 9.5 7.4 5.2 4.4 3.3 2.3 Other...... -...... 9.6 1.5 0.8 0.8 0.8 0.8 4.2 0.1 U. .0.1 0.1 0.1 Total...... --..... 13,809.0 875.1 939.3 952.6 945.5 919.6 908.2 859.4 837.2 792.2 687.1 628.9 Soul:nernLurope Bilateralofficial ...... 3,550.2 298.3 360.6 328.2 343.7 335.3 316.5 288.8 266.8 253.7 223.5 171.0 Multilateral...... 1,150.5 116.0 100.5 96.7 86.8 91.2 93.5 92.4 89.2 85.9 83.0 80.9 Private Suppliers...... 496.2 109.4 100.4 96.6 75.7 60.5 51.9 36.3 27.8 26.9 22.2 10.3 PrivateBanks ...... 666.8 90.1 165.8 142.3 132.0 117.7 25.5 38.3 35.4 17.7 10.6 10.1 Other...... 364.5 23.7 50.8 58.4 48.6 28.6 21.5 21.1 20.6 22.1 21.8 21.5 Total...... 6,228.2 637.4 778.1 722.2 686.8 633.3 508.9 476.9 439.7 406.4 361.1 293.9 Western Hemisphere Bilateralofficial ...... 6,722.1 635.4 618.9 589.8 531.5 483.7 451.8 408.0 387.9 377.6 358.5 321.6 Multilateral...... 4,226.0 307.7 355.5 400.0 425.6 424.7 425.4 408.2 393.5 369.9 352.0 335.2 Private Suppliers...... 2,850.4 604.1 549.5 483.5 422.8 333.5 308.6 232.7 146.9 107.0 78.5 49.2 PrivateBanks ...... 1,537.5 513.7 376.4 273.0 255.5 175.5 64.5 29.4 23.6 20.0 16.0 24.7 Other ...... 2,282.3 249.9 260A 305.7 348.9 292.7 228.5 164.4 152.3 142.7 132.8 96.1 Total...... 17,618.3 2,310.7 2,160.7 2,052.0 1,984.3 1,710.1 1,478.9 1,242.7 1,104.2 1017.1 937.8 826.8 80 Developing Countries Bilateralofficial ...... - ...... 31,799.7 2,346.9 2,545.9 2,511.5 2,471.3 2,401.1 2,349.8 2,195.5 2,084.4 2,013.8 1,797.2 1,613.9 Multilateral...... -...... 11,343.8 744.7 816.1 882.5 917.0 929.7 919.1 893.1 878.0 836.3 785.7 755.3 Private Suppliers...... 7,926.1 1,539.5 1,473.7 1,291.9 1,111.3 908.3 778.0 611.8 450.1 323.0 224.3 125.5 Privatebanks ...... 3,617.5 845.1 795.5 664.5 604.7 466.4 229.2 152.0 llS.1 87.1 67.9 68.0 Other...... 4,644.1 504.1 445.1 502.6 560.6 458.9 364.6 323.7 306.5 318.6 412.1 299.7 Total...... 59,331.3 5,980.1 6,076.3 5,853.0 5,664.9 5,164.5 4,640.6 4,176.0 3,834.0 3,578.8 3,287.2 2,862.3
Note: Includesthe samecountries as Table5. Projectedservice payments exclude loans tor which repaymentterms are not available.Items may not add to totals dueto rounding.The samee notes given on specificareas In TableS apply to this table. Souece:Woad Bano. ExternalResource Flow-sand Service Payments on External Table 9 Public-Debt,195-14969, (MillIonsOf us dollars)
Disbursements DebtService Grants;& Atnorti- Net Net Area andYear Loans grant-liket'> Total zation Interest Total flow)') transfer()' Africa 1965--..... 1,078.5 861.7 1,9440.2 31J3.6 163.9 467.5 1,636.6 1,472.7 1966...- 877,0 731.9 1,608.9 313.0 166.7 479,7 1,295.9 1,129.2 1967.... 984,1 685.1 1,669.2 293.3 182.7 476.0 1,375.9 1,193.2 196 8...... , 789.9 715.1 1,505.0 412.0 188.9 600.9 1,093.0 904.1 1969.8 00.1 739.6 1,539.7 521.3 203.5 724.8 1,018.4 814.9 East Asiat" 1965., . ,509.1 363.4 872.5 163.50)~ 30.1(e) 193.6 70l9.0(5) 678.9 1966...... 437.1 308.1 745.2 186.4(01 39.15 225.5 558.8(s 519.7 1967,. .I 814,6 398.7 1,213.3 205.6 54.1 259.7 1,007.7 953.6 1968-_ 1,033.0 425.2 1,458.2 205.2 79.1 284.4 1,253.0 1,173.9 1969 ~~. 1,201.o5 366.1 1,567.6 318.6 117.6 436.2 1,249.0 1,131.4 MiddleEast 1965...... 402.7 194.2 596.9 204.9 42.3 247.2 392.0 349.7 1966 . 442,7 121.5 564.2 228.6 49.5 278.1 335.6 286.1 1967,. ... 683.7 77.8 761.5 179.3 61.7 241.0 582.2 520.5 1968. 981.1 64.7 1,045.8 277.3 86.6 363.8 768.5 681.9 1969. 774.2 63.2 837.4 366.9 108.2 475.1 470.5 362.3 South Asiael 1965...__ 1,347,0827.3 2,174.3 199.5 147.1 346.6 1,974.8 1,827.7 1966.. 1,226,7 859.9 2,086.6 249.3 178.6 427.8 1,837.3 1,658.7 1967... 1,574,5 774.9 2,349.4 306.5 204.5 511.0 2,042.9 1,838.4 1968.1~~511.5 520.0 2'031.5 330.5 211.5 542.0 1,701.0 1,489.5 1969 . 1,'418,0 338.65 1:756.6 377.2 240.5 617.6 1,379.4 1,138.9 southern Eusropem) 1965.60... 7.0 61.4 668.4 346.9 92.2 439.1 321.5 229.3 1966. 759.2 46.1 805.3 336.2 105.4 441.7 469.1 363.7 1967.,758.2 346 792.8 324.4 115.4 439.8 468.4 353.0 1968..868.6 41.8 910.4 355.2 141.7 496.9 555.2 413.5 1969.~..,.... 945.6 19.5 965.1 359.0 173.0 531.9 606.1 433.1 Western Hemisphere'i1 1965._ 2,121.5 399. 2,521.31,300.4 421.0 1,721.41,220.9 799.9 1966.2.... ,152.8 392.2 2,545.0 1,482.~4 452.0 1,934.41,062.6 610.6 1967..... 2,617,6 384.3 3,001.~91,541.7 508.4 2,050.11,460.2 951.8 1968. 2,954.2 418.4 3,372.61,688.7 550.8 2,239.51,683.9 1,133.1 1969. 3,011.9 475.1 3,487.01,583.1 599.4 2,182.5 1,903.9 1,304.5 soD aopn out'a 1965 . 6,065.9 2,707.8 8,773.62,518.8 8966 3,415.46,254.8 5,358.2 1966. 5,895.5 2,45.7 8,355.22,795,9 991.3 3,787.25,559.3 4,568.0 1967. 7,432.7 2,35.4 9,788.12,850.8 1,126.8 3,977.66,937.3 5,810.5 1968 . 8,138.3 2 152 10323.5 3,26a.91,258.6 4,527.57,054.6 5,796.0 19694. 8:151.3 2:00.1 10;153.43,526.1 1,442.3 4,968.46,627.3 5,185.0
(0) Granitstatriist of grant andgrant-like contributions by DACcountries and grantsby multilateralagencies as compiledby OECDas well asdisbursements by lnter~AmnericanDevelopment Bashk on loansrepayable in recipients'currencies. (0) Disbursementsson loanis, grunts and granit-litreloans minus amortizstlon on loans. (5) MIetflow minusinterest on loans. ()Does not Inicludemost of the publiciy-gunranteedprivate debt of Philipipines. (" Interesttar Indonesiaincluded In amottization,Thoerefore net flow ustIbis year is understated. (0) Excludessuppliers' credtitsto India for whith e comnpleteseries oft datais inot availablefor 1965-1968.For 1969.transactions on these creditswere asfollows: disbursements $89.2 million, armortiation $64 miliiion, interest $22.9 million. (7) Doesnet includethe tnon-guaranteeddebt of theo"social sector" of Yugoslaviaconitracted after March 31. 1966. nS Servicepayn'onts for BrazilInclude some noo-~guaranteed debt of the privatesector to suppliers. flote: Inctudesthre same countries as Table5. Itemsmay not addto totalsdoe to roujnding. Source:World flank andOECD, AverageTerms of LoanCommitments and GrantElement of Loans Table10 andGrants, 1965-1969, by Regions
Loan Commitments Grant Amount of Grants(2) element loansused Region Year Amount Maturity Grace Interest Grant5 Amount of loans 1 for terms ($m.) (Years) (Years) (5) element(> (Sm.) and grants') calculation(3) (%) (55)
Atrica ...... 1965 619.19 22.5 5.2 4.254 41 861.72 76 593.92 1966 630.25 21.5 4.8 3.616 45 731.94 75 587.52 1967 971.03 20.1 4.1 3.100 46 685.13 69 908.02 1968 1,205.10 21.9 4.7 3.879 43 715.09 65 1,112.99 4 1969 930.22 25.1 6.1 4.284 43 739.61 70 830.22 4 EastAsia( ) ...... 1965 636.49 15.9 3.8 4.768 32 363.36 59 558.47 1966 753.56 17.1 4.1 4.625 34 308.09 54 700.08 1967 1,136.16 14.5 3.8 5.141 28 398.67 47 1,110.79 1968 1,281.16 19.2 5.4 4.709 36 425.21 52 1,240.11 1969 1,603.22 20.8 5.6 5.030 35 366.13 47 1,596.39 5 MiddleEast( 7 ..... 1965 132.22 14.5 2.9 4.394 31 82.11 58 130.55 1966 561,34 18.5 2.3 3.388 40 90.87 48 561.12 1967 522.58 11.7 2.3 3.967 29 66.08 38 475.83 1968 555.97 10.5 2.4 4.962 23 64.71 32 537.20 1969 952.97 10.0 2.2 6.575 15 63.24 22 684.29 South Asia(6)...... 1965 1,171.65 29.5 7.3 2.729 59 827.29 77 1,033.75 1966 1,912.25 30.9 7.3 2.366 62 859.95 74 1,844.10 1967 1,198.57 26.5 6.6 2.886 55 774.90 73 1,195.98 1968 1,698.70 29.5 7.0 .3.083 55 519.98 66 1,692.44 1969 1,313.45 29.6 7.0 2.626 59 338.64 68 1,222.17 1 SouthernEurope(7) ..... 1965 655.63 13.3 3.1 4.116 32 61.39 38 655.03 1966 626.83 21.6 5.0 3.991 42 46.12 46 624.53 1967 1,157.67 16.6 4.1 4.313 35 34.57 37 1,151.07 1968 895.65 15.2 4.3 4.990 30 41.76 33 887.83 1969 973.14 15,8 3.8 4.927 30 21.46 32 947.25 WesternHenmisphere().. . 1965 1,766.68 14.3 3.2 5.234 27 332.18 39 1,686.56 1966 2 016.30 16.5 3.6 5.499 27 317.04 37 1,975.56 1967 2'659.93 14.1 3.1 5.924 23 289.16 31 2,463.19 1968 3,048.20 14.5 3.4 6.126 22 334.29 30 2,938.60 1969 2,599.44 13.4 3.7 6.719 18 355.74 29 2,463.98 Total...... 1965 4,981.9 18.8 4.4 4,3 37 2,528.1 59 4,658.3 1966 6,500.5 21.9 4.9 4.0 42 2,354.0 58 6,292.9 1967 7,646.0 17.2 4.0 4.6 34 2,248.6 50 7,304.9 1968 8,684.8 19.0 4.6 4.8 34 2,101.1 47 8,409.1 1969 8,372.4 18.7 4.7 5.2 32 1,884.7 45 7,744.4
M')The grant element is the face value of loan commitments lessthe discounted present value of the future flow of repayments of principal and interest, using the customary rate of 10% and expressed as a percentage of the face value. Data tfr grants are taken from ECD(DAC) and lDB sources. Included are grant-like flaws (loans repayable in lucal currencies), bilateral grants, and UN agencygrants. Figureslfor grnts areon a disbursementbasis, whilefigures for loansareuon a commitmentbasis. 1969data for grants are partiallyestimates. The grant element of a grant is 100%. 3) This column showsthe amount of loans for which repayment terms are known, ' Does not include mostof the non-guaranteeddebt of the private sector of Philippines. In) Excludes Israel. (6) Excludessome suppliers' credits to India for which terms data are not avaitable. Commitments ot these credits amounted to $94.2 million in 1969. 7' Doesnot include non-guaranteed debt of the "social sector" contracted after March 31, 1966 by Yugoslavia. 101 Excludes Brazil. Note: Includes the same countries as Table 5 except for Brazil and Israel. Data on loans contracted in the earlieryears may be incomplete. Source: World Bank and OECD.
-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Amount of Loans and Grants Received and Table 11 Grant Element of Developing Countries ,1965=1969(') (Amountsin millionsof IIS dollars)
GrantElement Region GrantElement (%) Coauntry Laans Grants Loansand Cointry Loans Grants Loansand Year receivedrIM received Loans grartts Year received() received Loans grants
Africa Mauritania Botswana 1967.. 01 8.2 34 99 1965...... 8....100 1968. 7.8 6.8 25 60 1966.; t1.8 14.5 31 92 1969...... 6.5 6.4 72 86 1967 ...... 1.2 15.0 71 98 Mauritis 1968.. 3 16.2 77 100 1965...... O1 1.9 17 F 1969. 0.3 14.2 77 99 1966. - 2.9 1.5 22 48 Burundi 1967...... 5.6 3.3 22 74 1968 11.3 - 1968.7.8 6.6 22 58 1969.2.. 1 12.1 77 96 1969...... 2.4 4.1 69 89 Cameroon Morocco 1969...... 45.6 20.3 51 66 195 ...... 140.8 74.1 41 61 CentralAfrican Rep. 1966.... 151.5 58.4 34 52 196. .. 131 12. 26 91 1967..-.. 59.0 45.0 40 65 1969' ...... 1 12.8 66 85 1968...... 141.3 58.2 31 55 1969...... 90.0 46.6 35 57 Chad 1968.~~~...... 9.3 13.6 34 73ge 1969.10. . ..- .. 1.1 15.6 32 73 169 . 12.0 17.9 63 15 Congo,Dem.Republic 1969.15.7 18.9 33 70 1969.15.2 61.0 55 91 Nigeria Dahomey 1965...... 117.3 33.8 49 61 1968. 0.5 9.7 35 97 1966.28.4 41.0 24 69 1969-...... 0.4 01 8 901967-...... - 2.2 42.8 37 97 1969.10.4 10.2 81 90 ~~~~~~~~~~~~~~~~~~~1968...... 66.2 51.2 57 76 EastAfrican Community 1965...... 47.7 - 34 Rh3e4 1966...... 0.8 77 77 1965-...... 7.0 6.2 45 71 1967.13.0 - 29 29 1966 .. 0.5 - 100 1968.16.8 - 5 S 1967.- 0.4 - 100 1968.. -...... - 2.0 - 100 Ethiopia 1969. - 0.6 - 100 1965...... 22.8 17.5 33 62 1966. 46.2 23.7 59 73 Rwanda 1967. 28.0 21.7 49 71 1967...... 0.4 11.4 73 99 1968...... 5.70 24.6 46 64 1968...... -. 12.3 - 100 1969.50.5 24.8 44 62 1969 ...... 0.3 14.8 13 98 Gabon Senegal 1965...... 0.1 8.7 69 100 19 ...... 6 5 5.7 33.5 50 93 196...... 12.0 9.9 23 58 1966 . . 2.1 .32.0 39 96 1967...... 6.4 9.8 24 70 1967 ..... -- 5.0 34.9 31 91 1968...... 7.0 10.8 36 75 1968 ...... 19.4 32.9 34 75 1969...... 19.2 9.3 36 57 1969 ...... 9.5 34.7 63 92 Ghana SierraLeone 1969...... 54.1 21.3 53 66 1965...... 8.7 5.2 26 54 Guinea 1966. .6.9 6.6 23 61 1968...... - ..... 66.0 4.0 26 30 1967 ...... 3.6 6.5 57 84 IvoryCoast 1968...... - 5.9 7.8 38 73 1967...... 61.2 24.5 30 50 1969 . .0.3 6.3 47 97 1968 ...... 131.9 25.9 30 41 Somalia 1969 ...... 65.2 24.2 27 47 1966 ...... 7.5 16.4 63 88 Kenya 1967...... 4.8 11.8 73 92 1965.32.4 38.9 37 71 1968 ...... 29.4 19.4 70 82 1966...... 41.7 26.9 47 68 Sudan 1967...... 74.2 26.4 68 771965-...... 55.6 12.0 34 46 1968.31...... 25.8 28.9 79 90 1966.. 5 ....0 5.5 68 77 19W.... 31.6 7.8 30 63 1967 ...... 69.5 8.5 31 39 Lesotho 196 . .38.8 5.5 39 47 1967...... 0.8 12.0 72 98 1968...... 1.1 12.9 27 94 Swaziland 1969...... 0.2 12.5 77 100 1965 ...... - 8.0 - 100 Liberia 1966 ...... 2.1 7.6 42 88 1965...... 12.6 12.1 64 81 1967 -...... 3.6 8.6 35 81 1966...... 7.2 11.6 55 83 1968,.. .1. 5 6.6 72 95 1967...... 3.0 12.5 61 92 1969...... 0.4 8.4 66 98 1968 ...... 0.7 9.7 52 97 Tanzania 1969...... 8.7 10.2 47 76 1965...... 6.8 24.6 40 87 MalagasyRepublic 1966 . .25.3 31.2 66 85 1966...... 20.0 28.3 69 87 1967 . ...- ...... 44.6 20.8 37 57 1967...... 11.9 31.5 41 84 1968 ...... 27.0 21.1 54 74 1968...... 20.6 28.3 43 76 1969 ...... 62.5 22.9 74 81 1969...... 7.6 27.5 34 86 Malawi Togo 1961-. 7.7 20.0 80 94 1968...... 6.3 9.0 62 84 1968.42.7 15.4 56 67 1969...... 2.7 11.4 90 98 1969...... 14.9 15.8 63 82 Tunisia Mali 1965 . . 85.9 57.7 31 59 1967...... 13.1 11.8 63 80 1966.. 73.4 45.0 49 68 1968...... 3.0 14.3 76 96 1967...... 653 42.2 42 54 1969-...... - 17.0 - 100 1968 . .98.4 47.5 46 63 '.1 (continued) Amount of Loans and Grants Received and Table 11 Grant Element of Developing Countries, 1965-1969") (continued) (Amountsin millionsof USdollars)
GrantElement(%) RGrant Element(g) Region :Regisn Country LLoas2 Grants Loansand Country Loans Grants Loansand Year received() received Lsans grants Year recelved(n) received Loans grants
Africa (Cont.) Ceylon Uganda 1965..1;8. 6 1;.2 41 62 1965. 14.9 13.3 39 68 1966. 91.6 12.9 42 49 1966. 19.8 15i0 74 85 1967.68.3 117 38 47 1367. ... 25.8 10.7 77 196896.5 8.6 41 46 1968.. -. ; 26.4 12.5 76 83 1969...... ' 99.9 9.8 42 48 19694-.-----. . 12.2 12.6 84 92 India UpperVolta 1965. 721.5 562.3 61 78 1968 . 1.6 15.4 24 93 1966...... --..... 1,177.4 652.4 66 78 1969 . 5.0 14.0 43 85 1967-... 6467 567.3 60 79 Zambia 1968.1,057.0 359.3 62 71 1965.0.4. 12.4 10 97 Pakistan 1966.39- .... 3 28.6 21 55 1965.293.6 215.1 52 72 1967.53.7 40.7 26 58 1966... 575.1 155.3 57 66 1968- - .45.7 27.1 23 52 1967...... 482.8 171.0 51 64 1969 ...... 25.2 15.3 27 55 1968. 528.6 129.4 44 65 1969..... 514.6 47.8 56 59 East Asia China Southern Europe 1965-. ..- ...... 115.1 26.5 28 42 Cyprus 1966--...... 69.0 20.4 22 40 1965...1.4 6.5 16 85 1967-. . 146.7 24.6 27 37 1966 1.7 14 70 1968...... 23.8 153.92 1967.3.0 1.3 22 46 Indonesia 1968. , ,0.9 2.0 10 73 1967...... 153.5 49.6 51 63 1969.26.2 3.2 23 32 1968._-...... 283.4 71.8 62 70 Greece 1969. 470.8 64.3 63 67 1965...... 45.1 6.2 22 32 Korea 1966.67.3 2.1 18 21 1965...... 133.8 172.0 52 79 1967.62.0 1.3 20 22 1966...... 318.6 143.3 41 59 1968... 111.3 (4) 23 23 1967 ...... 566.0 155.5 22 39 Malta 1968 ...... 464.5 190.9 25 47 1965.1.5 13.3 21 92 Malaysia 1966.1.5 15.2 21 93 165. 73.8 21.7 29 45 1967 .. 2.1 . 13.1 21 89 1966.46.2 27.8 29 56 1968.9.0 12.8 24 69 19 ,.. 6 ...... 7 93.6 24.9 2U 37 Spain 1968 .97.1 26.4 50 61 1965...... 96.2 5.5 31 34 1969...... 76.3 23.1 19 38 1966.85.4 3.1 21 24 Philippinest3) 1967...... 481.8 2.2 25 25 1965.147.1 71.5 13 41 1968...... 307.6 0.4 17 17 1966.45.3 44.0 32 66 1969...... 343.3 (5) 22 22 1967.84.4 86.0 32 66 Turkey 1968.106.7 47.0 6 35 1966. 304.5 22.7 61 64 1969.113.1 57.3 23 49 1967.295.7 8.0 52 53 Singapore 1968.318.5 17.7 49 52 1965.6.8 2.8 30 50 1969 ...... -...... 284.1 7.6 51 52 1966.25.0 2.1 28 33 Yugoslavia(6) 1967-....-..... 26.2 6.6 25 40 1968.98.2 4.6 63 65 1965.493.9 5.9 33 34 1969...... 41.5 6.3 21 31 1966. 1967-...... 306.9164.9 8.61.4 3625 2537 Thailand 1968 146.1 8.9 22 27 1965 38.4 33.2 41 69 1969.125.1 2.8 22 24 1966.42.0 35.2 30 62 1967.40.5 51.6 30 69 1968...... 36.3 60.8 29 74 1969.53.7 58.0 27 65 WesternHemisphere Middle East Argentina 1965--.East...6 5 428.2 14.6 15 17 Iran 1966. 309.4 14.5 16 20 1965.496.9 11.0 40 41 1967. 501.4 12.2 11 14 1966 .435.9 11.5 29 31 1968.531.2 24.1 19 23 1967.503.4 12.1 22 24 1969. 488.9 39.0 15 21 1968.276.7 10.4 20 23 Iraq 1966. .,,,,,,, 48.9 25.4 50 67 1966.37.8 4.5 28 36 1967...... 15.6 17.5 71 86 1967.29.7 3.2 22 29 1968 ...... 39.8 20.6 50 67 1968.- 4.7 - 100 1969 ...... 65.5 17.2 37 50 JordanChl 19656 . 7.5.6.. 63.9 8 98 1965...... 181.2 39.5 45 55 1967-- ...... 11.6 45.2 70 94 1966.282.--..... 9.3 40.2 42 49 1968.20.7 40.5 55 85 1967. --- ...... 599.3 30.6 30 33 Syria 1968.13.6 9.1 26 56 Colombia 1965. 195.5 24.2 36 43 SouthAsia 1966-...... 6111.2 24.5 35 47 1967-1 .... 9 6 7 230.0 32.0 43 50 Afghanistan 1968 .275.9 41.4 36 44 1969.24.1 22.8 68 84 1969 .269.1 44.8 36 45 (continued) Amtount of Loants and Grants Received and Table 11 Grant Betiementof iDevoplng >untines, 29654>969(1) (continued) (Amountsin miltionsof USdollars)
GrantElement(%) GrantElement(%) Country Loans Grants Leansand Country LoanYs Grants Loas anrd Year receiveod,U .eceived Loans grants Year reievoed(k) received Loans grants
Western Hemisphere (Cont.) Mexico CostaRica 1965 ...... 496.1 12.8 21 23 1965...... 24.4 6.6 36 50 1966. 543.2 16.3 17 19 1956 .11.7 8.1 32 60 1967..... 728.8 13.2 13 15 1967...... - 16.7 9.1 28 53 1968.9 74.8 14.0 16 17 1968. 48.6 10.5 24 37 1969. . 812.0 14.5 10 11 1969...... 35.8 12.4 31 49 Nicaragua DominicanRepubtie 165- 22.1 10.1 37 57 1965..1- .. I..... 14.1 65.4 49 91 19663..3.8 9.0 45 56 1966 - . . . . 73.6 36.5 66 78 1967. . 23.9 8.3 38 54 1967 i 20.7 18.6 56 77 1968 . .100.2 12.8 34 41 1968...... 44.5 20.3 59 72 1969 . 13.2 9.4 23 55 1969 ...... 52.3 26.1 40 60 Panama Ecuador 1965 . 6.5 10.8 49 81 1\965.16...... M3 16.3 27 64 1966...... - . 1 10.1 54 83 1966 ...... 44.1 17.2 47 62 1967 . . 23.0 13.9 60 75 1967 ...... 57.1 13.3 18 33 1968 . . 1.8 15.6 74 97 1968.. 43.8 13.4 36 51 1969 ...... 51.3...... 14.6 24 41 1969 .15.8.7S. 13.3 22 58 EtSalvador P 1965...... 8.4 7.0 46 71 1965...... 15.0 8.1 22 50 1966...... 8.3 1.87 58 1966 3 ...... Z 614.4 62 74 1967.....11.5 9.7 37 66 1967.~...... 20.6 8.0 41 57 1968...... 0 7.5 29 66 1968...... 3.9 10.6 54 88 1969. . 17.5 10.7 30 57 1969 . . . 31.7 12.9 46 62 Guatemala Peru 1965...... 14.7 10.3 24 1965 . . 122.2 27.8 26 40 1966 ...... 18.9 9.8 36 58 1966. .343.2 28.0 19 25 1967...... 48.5 15.6 23 42 1967. . 148.7 29.2 16 30 1968.38.5...... 58.1 62-----.. 32 52 1968 230.9 31.1 15 25 1969...... 15.9 10 59 1969 . . 38.3 28.9 12 50 Guyana TrinidadandTobago 1965...-.... 7.8 5.5 61 77 1965...... 11.2 16.6 45 78 1966...... 7.4 8.9 73 88 1966...... - 6.7 - 100 1967...... 11.4 7.7 64 78 1967...... 20.2 3.6 28 39 1968..-...... 18.7 8.1 41 59 1968...... 24.4 4.1 23 34 1969-...... - 31.4 5.7 42 51 1969...... 84 2.3 13 32 Honduras Uruguay 196. .... 18.5 4.7 59 68 1965...... 54,5 .4.1 20 26 1966 19.4 6.8 46 60 1966.24.8 51 22 35 1967 19.5 9.5 41 60 1967.37.9 6.8 10 24 1968 22.6 9.6 41 59 1968.124.0 7.0 21 25 1969 14.7 14.0 52 75 1969.53.9 8.1 23 33 Jamaica Venezuela 1965. 19.6 5.0 32 46 1965. 88.2 14.5 21 32 1966.49.7 4.8 25 31 1966.41.8 26.9 23 53 1967.16.2 5.7 24 44 1967.64.9 24.7 20 42 1968.26.6 7.5 13 32 1968.54.9 19.4 18 40 1969.9.9 6.9 27 57 1969. 170.2 13.9 8 15
(O) ExcludesBrazil, Israel and United Arab Republicfor whichdata arenot available. (2) Excludedfrom this columnare loanswhose repaymenit terms are not knownanid which could not thereforebe usedin the grant elementcalculation. (3)Does not includemost of the non-guaranteeddebt of the privatesector. C4) Lessthan $50,000. (a) Net grantsare negative and arehere treated as zero. 06 Doesnot includenon-guaranteed debt of the "socialsector' contractedafter March 31, 1966. Source:World Bank and OECD.
"4 Foreignand International BondIssuzes by Marketand Countryof BorrowerEntity, 1966-1970, First Half 1971(1) Table (Millionsof UISdollars) 12
Yearand Market Boirrowingcountr 1966 196 196 19169 1970 Firstflalf 1971(P) North 2 North North North America Europe() Total America tumope(z) North 5 North Total Amerika Earope(2) Total -America Europe(z) Total America EuroDpe() Total America Europe(-) TOtal industrializecdcountries Europe Austria. 38.2 38.2 85.1 - 85.1i 93.3 93.3 - 70.5 70.5 -. 14.3 14.3 - 31.9. 3. Belgium. ~...... ,, 22.0 51.8 73.9 - 74.1 74.1 - 31.0 31.0 - 189.5 189.5 - 18.9 18.9 -. -. Denmark...... - 47.6 47.6 - 72.0 - 72.0 105.8 105.8 - 143.9, 143.9 - 92.3 92.3 - 113.4- 1134 Finland,...... _... - 1.0 1.0 15,0 25.0 40.0 - 87.4 87.4 - 70.4 70.4A 48.9 48.9 - 47.8 47.8 Franice ...... - 27.1 27.1 - 157.2 157.2 - 123.8 123,8 - 1,86.5 186.5 -. 2666 26&6. - 224,7. 2247 Sermany.- 79.4 79.4 -.. 58.2 58.2 - 8.16 8.6 - 229.4 229.4A 126.6 126.6 - 63.8' 63. Iceland..-.. 6.0 6.0 .- 18.0 18.0 - 4.8 4.8 0.5 6.3 6.8 - - - - 10.0 10.0 Ireland...... -. 33.6 33.6 - - -. - - - 57.5 57.5 - 42.3 42.3 - 52.0 52.0 Italy....- 60.0 60. - 731 73.1 - 84.2 84.2 - 118.9 118.9 - 433.3 433.3 - 136.0 136.0 NetheFrlands... - 61.~9 61.9 - 44,'4 44.4A 183.5 183.5 - 210.5 210.5 - 291.6 291.6 - 157.6, 157. Norway10.0 10.0 20.0 12.0 83.5 95.5 -. 40.7 40.7 - 24.0 24,0 93.6 93.6 - 55.9' 55.9 Sweden.- ~~~~~~~~34.0340 - 30.0 30.0 IL116 11.6 - - - - 65.0 65.0 65.5; 65.5 Switzerland'.------W0. 60. - - 16 5.6 UnitedKingdom_..__ _ 4.5 51.6 56.1 - 74.2 74.2 - M18, 148.9 -. 283.5 283.5 - 257.8 257.8 - 266.3 266.3 Multinational corporations(t). .. - 62.5 62.5 -.. 125.0 125.0 - 3,3.9 33.9 - 20.0 20.0 - 15.0 15.0 - 42.6 42.,6 Sub-total., ... _...36.5 564.8 601.3 27.0 919,8 946.8 - 957.5 957.5 0.5 1,670.916.4 - ,7.2 ,6.2 - 1,319. 1,319. Others Australia.- 25.0 25.0 - 120.8 120.8 - 88.9 88.9 .- 146.0 146.0 - Canada_..... 106.7 106.7 - 80.3 80.3 1,239.3 - 1,239.31,344.4 16.0 1,360.4 1,259.1 486.0 1,745.11,091.1 334.8 1,425.9 795.2 177.5 972.7 276.6 7,7.2 353.8 Japan...... _... - -. 15.0 .- 15.0 .- 178.9 1,78.9 9.0 261.0 270.0 - 119.9 119.9 - 69.6 69.6 NewZealand ...... - 58.6 58.6 - 82.2 - 82.2 34.4 34.4 - 25.0 25.0 - 11.6 11.6 - 51.'7 51.7 SouthAfrica. . ..- .-.- ~ 25.0 25.0 - 62.5 62.5 - 55.0 55.0 - 38.8 38.8 -. UnitedStates..- 98.6 98.6 -. 151.5 151.5 629.3 629.3 - 597.8 5978 3.2 2,433.12,436.3 1.2 1,257.3 -. Sub-total.1,23.3__737.9 1,258.5 1,091.81,091. - 687.2 687.2 19721,359.4 879.3 2,238.7 1,262.33,276.3 4,538.6 1,101.32,062.9 3,164.2 795.2 1,606.12,401.3 276.6 1,117. 1,394.1 Total.1,275.8...1,302.1..2,578.5 1,386.4 1,799.13,185.5 1,262.342385,496.1 1,101.83,733.8 4,835.6 795.2 3,372.3416. 2762,362732 MultilateralEuropean Institutions
Councilof Europe -...... 6.0 6.0 - - - Eurofirna(4 . ------) ...... 6.9 6.9 - 42.0 42.0 - 31.1 31.1 - - EuropeanCoal and Steel - - 17.0 17.0 - 49.5 49.5 Community...... 127.0 127.0 - 52.5 52.5 - 78.0 78.0 - 13.8 13.8 - 60.0 60.0 - 35.3 35.3 EuropeanInvestment Bank ... - 138.5 138.5 - 179.5 179.5 .- 100.0 100.0 - 82.3 82.3 - 138.9 138.9 - 150.0 150.0 lnterfrigo(s)...... - 6.9 6.9 -. ------9.2 9.2 - - - - 10.0 10.0 Total...... - 285.3 285.3 - 274.0 274.0 - 209.1 209.1 - 105.3 105.3 - 215.9 215.9 - 244.8 244.8 InternationalDevelopment Institutions AsianDevelopment Bank ....-.- - - ... - 15.0 15.0 Inter-AmericanDevelopment - 1.0 21.7 50.0 29.3 79.3 Bank...... _.. - 100.6 100.6 110.0 36.0 146.0 70.0 96.0 166.0 - 137.2 137.2 100.0 65.6 WorldBank...... 212.0 165.6 - 47.9 47.9 271,.7 483.7 400.0 308.9 708.9 413.9 811.7(s)1,225.6 - 712.8 712.8 200.0 973,5(0) TotaL...... _212.0 1,079.5 200.0 594.9(9) 784.9 372.3 584.3 510.0 344.9 854.9 483.9 907.7 1,391.6 - 865.0 865.0 300.0 960.8 1,260.8 250.0 662.1 912.1 DevelopingCountries Algeria...... 15.0 - 15.0 - - Argentina...... 23.5 t- 23.5 - 25.0 25.0 26.0 50.0 76.0 50.6 35.4 86.0 8.2 61.6 69.8 Bahamas...... ___ 14.0 - 14.0 ------Brazil...... 2 i - - - - - 0.8 10.0 10.8 1.0 10.0 11.0 - 15.5 15.5 - - - Colombia...... - - 0.5 7.0 7.5 - - - 1.6 - 1.6 0.7 - 0.7 CostaRica ...... c ------0.1 - 0.1 DominicanRepublic.------0.2 - 0.2 ------EAC(10)._ _.- _ _ _ 16.8 16.8 - - - _ - - Gabon...... -...... 2.4 2.4 ------3.6 3.6 Greece.------25.0 25.0 ------Hungary...... ------25.0 25.0 Iran ...... - - - 20.0 20.0 - 8.0 8.0 - - - - - Israel. .. 119.7 - 119.7 203.1 15.0 218.1 174.0 - 174.0 136.7 0.9 137.6 187.8 - 187.8 62.0 - 62.0 IvoryCoast ...... ------16.1 16.1 ------Jamaica. 7.5 8.4 15.9 - - - - 7.2 7.2 - - - 1.2 - 1.2 - - - MalagasyRepublic .- - - - 4.1 4.1 ------Malaysia... - - - - 21.0 21.0 - 6.3 6.3 - 10.0 10.0 ------Mexico. 15.7 45.0 60.7 39.6 85.0 124.6 9.0 138.6 147.6 26.0 45.0 71.0 - 20.0 20.0 20.0 - 20.0 NetherlandsAntilles...... - - - - 13.8 13.8 - - - - 38.7 38.7 ------Nicaragua...-- 1.5 - 1.5 ------Panama...... - - 5 - 7.5 ------30.0 30.0 - - - Peru ... 4,0 18.5 22.5 11.3 5.8 17.1 - - - - 5.8 5.8 ------Philippines...... - - - 8.0 - 8.0 15.0 - 15.0 11.0 - 11.0 Portugal- ...... - 29.0 29.0 - 34.0 34.0 - 15.0 15.0 ------Senegal...... ------6.1 6.1 - - S . p a n - -. - 53.0 53.0 60.0 - 60.0 - 25.0 25.0 - 30.0 30.0 - 27.3 27.3 T h ._ailarnd...... - - -1.0 - 1.0 ------Trinidadand Tobago .... - - 7.2 7.2 - - - - - _ Venezuela...... 4.3 - 4.3 1.1 - 1.1 - 25.0 25.0 8.2 - 8.2 - 13.3 13.3 Yugoslavia...... ------50 5.0 Total...... 203.7 103.3 307.0 273.6 259.6 533.2 285.0 347.4 632.4 235.1 178.8 413.9 198.0 179.0 377.0 82.0 52.3 134.3 Recapitulation IndustrializedCountries ... 1,275.8 1,302.72,578.5 1,386.4 1,799.13,185.5 1,262.34,233.8 5,496.1 1,101.8 3,733.8 4,835.6 795.2 3,372.34,167.5 276.6 2,436.6 2,713.2 MultilateralEuropean Institutions...... - 285.3 285.3 - 274.0 274.0 - 209.1 209.1 - 105.3 105.3 - 215.9 215.9 - 244.8 244.8 Total...... 1,27. 1,588.02,863.8 1,386.4 2,073.1 3,459.5 1,262.3 4,442.95,705.2 1,101.8 3,839.1 4,940.9 795,2 3,588.24,383.4 276.6 2,681.4 2,958.0 InternationalDevelopment Institutions...... 212.0 372.3 584.3 510.0 344.9 854.9 483.9 907.7 1,391.6 - 865.0 865.0 300.0 960.8 1,260.8 250.0 662.1 912.1 DevelopingCountries ...... 203.7 103.3 307.0 273.6 259.6 533.2 285.0 347.4 632.4 235.1 178.8 413.9 198.0 179.0 377.0 82.0 52.3 134.3 TotaL...... 415.7 475.6 891.3 783.6 604.5 1,388.1 768.9 1,255.12,024.0 235.1 1,043.81,278.9 498.0 1,139.81,637.8 332.0 714.4 1,046.4 GRANDTOTAL...... 1,691.5 2,063.63,755.1 2,170.0 2,677.64,847.6 2,031.2 5,698.0 7,729.2 1,336.9 4,882.9 6,219.8 1,293.2 4,728.06,021.2 608.6 3,395.84,004.4
S1) Includesissues both publicly-offeredand privately-placed. M Includesan issueof ' 6.0 billion publicly-offeredin Japan. (2) IncludesLondon, Continental Europe and the Eurobondmarket. (8) includesan issueof EL10.0 million privately-placed in Libyaand 2 issuestotalling Y 72.0billion privately-placed (3) Includesthe followiingcorporations: Acieries Reunies de Burbach-Elch-Dudelange,Ameribas Holding SA., 8EC in Japan. FinanceN.V., N.V. Rotterdam-RijnPijpleiding, Shell Finance Company N.V., Shell InternationalFinance N.V., (9) Includesan issueof ' 11.0billion publicty-olferedin Japanand 3 issuestotalling Y 79.0 billion privately-placed SocieteFinanciere Europeenne, and Transalpine Finance Holdings, in Japan. (4) SocieteEufropenne pour la Financementde MaterielFerroviaire. (10) EastAfrican Community. 1s)Sncif te FerroviaireInternationale de TransportFrigorifiques. (P) Preliminary. (0) Includesan issureof KO 15.0mitlion pubticly-offeredin Kuwaitand two issuestotalling $30.0 million privately- Source:World Bank. ::i placedin SaudiArabia. AverageIssue Yieldof New Foreign and InternatiornalBonds, 1966-1970, First Half 1971(1) Table 2.3
iscoeditn flrth AmrijranMBarkets by (34 Issuedin EuropeanMBarkets by Issued in EurobondPdarket by OtherInter- OtherInter. Other Othter national nationat U.S. Indus- Desel- U.S. lda-Devel- Worltd DeearetWorld enlpet Corpa itrilized oi ~ Cro raie pn BankInstitutions C~anada Others Rank Intttos rtin anre cutis rtos countries cotrv (5) (4) aay(3 (ii 14) 014
FirtoQuarter. 5.98 -5.50, 7.09 - .05.03 -5.V7 6,60 SecondQuarter__ ...... 5.39 5.6 6.92 -- - 5.33 SO.8 6.77 6.72 ThirdQujarter.-....- 6.25 - -5.75 - 657 -7.24 6.93 7.26 FourthQuarter,. 6.41 -6,3 - .- 6.89 8.7 6.75 6.96 7.35
First Quarter.5.3~ ~ ~~~55,20 5.81 -- - 5.62 6.53 6.23 6.87 7.78 SecondQujartef .-- 6.35 - 5.04 -5.35 5.78 -6.29 &68 7.28 ThirdQ uarter .5.95 6.51 7.19 - - 5.50 6.39 - 5.77 6.9M 7.6 Fourh Quarter. B.555 6.6 7.25 6.00 7.25 5,25 6.80 7.53 5.11 5.84 7.57 1968 f irst Quarter.6.7. 7.06 - 7.08 - 5.27 5.5 8.68 5.34 7.32 8.3 SecondQuarter ...... 7.37 7.12 5.89 6.98 5.60 6.51 - 5.079 7.17 7.42 ThirdQuarter.6.54 _~ _ .,_- 7.30 ..- k5,5( 6.16 - 5.56 - 5.72 5.99j 7.4 FoutrthQuarter,..-.6.78 7.28 5.92 5.35 7.16 5.65 6.32 7.55 6.51 6.88 7.75 1969 FirstQuarter.- .....- 7.76 - - 6.46 5.28 6.19 - 5.9 6.32 7.38 SeconidQuarter ...... 8.21 6.50 6.77 - 5.70 6.61 6.85 6.80 6.7 7_56 ThirdQuarter. . _ .... -.. 8.82 - - 7.24 6.45 7.05 - 7.62 7.58 7.73 FourthQuarter._ -9.61 - - 6.28 6.92 8.9 7.44 6.99 1.00 1970 FirstQuarter ..... 9.49 - - 6.44 6.38 7.50 8.70 8.30 - SecondQuarter ...... - 7.19 6.50 7.58 - 9.19 8.49- ThirdQuarter...... 8.63 - 9.40 - 8.61 8.56 7.07 6.92 - 8.58 8.91 FourthQuarter ...... - 8.70 8.75 - 7.89 7.40(8) 6.93 6.29 - 8.42 8.81 - 1971 (P) FirstQuarter ...... 6.50 - 8.06 - - 7.74 6.64 7.18 - 7.25 8.21 8.31 SecondQuarter...... 6.5 7.22 8.29 - 7.45(7) 7.52 6.95 7.15 - 806 8.04 -
C)Includes publicly-offeredbnnds only. (2) IncludesCanada and UnitedSlates. (3) Includesissues by the AsianDevelopment Bank and the Inter-AmericanDeaelopment Bank. (4) Issuesby governments,public and privatecorporations. (S) Issuesby governments,public and privatecorporations, and multilateralEuropean institutions. (0) Includesan issueat KD15.0 million publicly-offeredin Kuwait. (7) Incladesan issueaf V11.0 billion publicly-alluredin Japan. (0) Includesan issueof 4 6.0 billion pablicly-offeredby AsiAn Development Bank in Japan. (P) Preliminary Source:World Bank. BankAppendices
Page A BalanceSheet ...... 80 B Statementof Incomeand Expenses...... 82 C Statementof Sourceand Application of Funds...... 83 D Statementof Subscriptionsto CapitalStock and VotingPower ...... 84 E SummaryStatement of Loans...... 86 F SummaryStatement of FundedDebt ...... 88 G Notesto FinancialStatements ...... 89
OPINIONOF INDEPENDENT AUDITOR ...... 90
H Statementof LoansSigned During the Fiscal Year 1970/71...... 91
79 BalanceSheet
June 30, 1971 Expressedin United States Currency (in thousands)-See Notes to Financial Statements, Appendix G
Assets 1971 1970 DUEFROM BANKS AND OTHER DEPOSITORIES Unrestrictedcurrencies ...... $ 51,337 $ 35,820 Currenciessubject to restrictions-NoteA 73,026 81,010 $ 124,363 116,830 INVESTMENTS Obligationsof governmentsand their instrumentalities(At cost or amortized cost; faceamount $1,226,945-1971, $980,646-1970) ... . $ 1,218,369 968,842 Time deposits(At costor amortizedcost; faceamount $985,471-1971, $751,066-1970)...... 985,424 750,847 Accruedinterest ...... 56,612 61,282 2,260,405 1,780,971 RECEIVABLEON ACCOUNTOF SUBSCRIBED CAPITAL (SeeAppendix D)-Note A Non-negotiable,non-interest-bearing, demand notes.. $ 382,391 348,221 Amountsrequired to maintainvalue of currencyholdings 2,669 2,868 385,060 351,089 LOANS(See AppendixE) ...... $11,327,361 9,868,195 Less-Loanssigned but notyet effective . 1,347,180 979,275 Effectiveloans (Including undisbursed balance $3,394,203-1971, $2,925,877-1970)...... 9,980,181 8,888,920
ACCRUEDCHARGES ON LOANS...... 107,573 96,281
RECEIVABLEFROM PURCHASERS ON ACCOUNTOF EFFECTIVE LOANS AGREEDTO BESOLD (Including undisbursed balance $8,811-1971, $12,825-1970)...... 13,883 23,911
UNAMORTIZEDBOND ISSUANCE COSTS ...... 39,716 34,428
LANDAND BUILDINGS $ 41,293 40,387 Less-Reservefor depreciation.. 4,627 3,923 36,666 36,464 OTHERA SSETS ...... 6,518 7,302
SPECIALRESERVE FUND ASSETS-Note B Investmentsecurities-Obligations of UnitedStates Government and its instrumentalities(At costor amortizedcost; faceamount $289,141-1971, $292,129-1970).. . $ 292,072 291,751 Accrued loan commissions ...... 100 135 292,172 291,886 TOTAL...... $13,246,537 $11,628,082
80 Appendix A InternationalBank for Reconstructionand Development
Liabilities, Reserves and Capital 1971 1970
LIABILITIES Accruedinterest on borrowings...... $ 118,087 $ 91,241 Accountspayable and other liabilities...... 18,349 8,708 Dueto InternationalDevelopment Association ...... 239,515 162,640 Undisbursedbalance of effectiveloans (See AppendixE) Heldby Bank...... $ 3,394,203 2,925,877 Agreedto be sold...... 8,811 12,825 3,403,014 2,938,702 Fundeddebt (See AppendixF) (Includingamount due within oneyear $573,436-1971,$509,685-1970) ..... 5,424,162 4,568,305
RESERVES Specialreserve-Note B ...... $ 292,172 291,886 Supplementalreserve against losses on loansand guaranteesand from currencydevaluations-Note C ...... 1,151,983 1,036,859 1,444,155 1,328,745
CAPITAL Capitalstock (See Appendix D)-Note D Authorizedshares of $100,000par valueeach 270,000-1971, 240,000-1970 Subscribedshares 238,710-1971, 231,588-1970 ...... $23,871,000 23,158,800 Less-Uncalledportion of subscriptions-NoteE ...... 21,483,900 20,842,920 2,387,100 2,315,880 Paymentson accountof pendingsubscriptions...... 408 992 Net income-NoteC Fiscalyear to date(See Appendix B) ...... 211,747 212,869
TOTAL...... $13,246,537 $11,628,082
81 Statement of Income and Expenses Appendix B InternationalBank for Reconstructionand Development
Forthe FiscalYears Ended June 30, 1971and June30, 1970 Expressed in United States Currency (in thousands)-See Notes to Financial Statements, Appendix G July 1-June30 1970/71 1969/70
Income Incomefrom investments(')...... $187,246 $149,217
Incomefrom loans: Interest...... 358,9583 326,620 Commitmentcharges ...... 24,310 17,613 Commissions...... 286 382 Servicecharges ...... 21 46 Otherincome ...... 7,015 10,789 GROSSINCOME ...... $577,836 $504,667 Deduct-Amountequivalent to commissionsappropriated to SpecialReserve-Note B ...... 286 382 Gross Income Less Reserve Deduction ...... $577,550 $504,285
Expenses Administrativeexpenses( 2) ...... $ 56,394 $ 45,453 Intereston borrowings ...... 304,973 242,373 Bondissuance and otherfinancial expenses ...... 4,121 3,549 Discounton saleof loans...... 315 41 GROSSEXPENSES ...... $365,803 $291,416 Net Income-Note C ...... $211,747 $212,869 r') Includesnet capitalgain (loss) of $7,990,414-1971,($1,402,770)-1970 resulting from the saleof investments. (2) All administrativeexpenses of the Bank andthe InternationalDevelopment Association and a portionof the expensesof the InternationalFinance Corporation are paidby the Bank. A "ManagementFee" is chargedto the Associationand a "Serviceand SupportFee" to the Corporationrepresenting their respective sharesof the costs.The administrative expenses shown are net of the "ManagementFee" ($20100,000-1971, $15,800,000-1970) and "Serviceand Support Fee"($1,749,000-1971). On July 1, 1970the Bank commencedcharging the "Serviceand SupportFee" which replaceda cost-sharingarrangement with the Bankcovering certain categories of expenses.
82 Statementof Sourceand Application AppendixC ofFunds InternationalBank for ofFunds Reconstructionand Development
For the Fiscal Years Ended June 30, 1971 and June 30, 1970 Expressedin United States Currency (in thousands)-See Notes to Financial Statements, Appendix G
July 1-June 30 1970/71 1969/70
Source of Funds Net income ...... $ 211,747$ 212,869 Ltemsnot requiringor providingcash ...... 26,064 (13,050) Cashprovided by operations ...... $ 237,811 $ 199,819 Net gainfrom currencyrevaluations ...... 2,255 2,530 Fundeddebt: Newand refundingissues ...... 1,367,663 734,986 Bondssold for deliveryafter the currentfiscal year ...... (17,100) Deliveryof bondssold in prior years ...... 43,525 97,600 increasein fundeddebt as a resultof currencyrevaluations ...... 10,057 90,310 Total...... $1,404,145$ 922,896 Capitalsubscriptions ...... 4 ...... 45,233 38,404 Repaymentsof loans...... 318,675 328,497 Receiptsfrom saleof loans...... 26,862 194,552 Other ...... 9,392 17,261
TOTALSOURCE OF FUNDS ...* ...... $2,044,373 $1,703,959
Application of Funds Disbursementson loans...... $ 954,904 $ 771,839 Increasein loansoutstanding as a resultof exchangeadjustments (including currency revaluations) ... 7,554 95,620 Retirementof fundeddebt ...... 548,288435,807 Paymentson IDA transfer...... 23,125 29,560 Other...... 10,881 14,638 TOTALAPPLICATION OF FUNDS ...... 5 $...... 1,544.752 $1,347,464 Increase in Unrestricted Currency and Investments ...... $ 499,621 $ 356,495
83 Statementof Subscriptionsto Capital Stockand Voting Power
June 30, 1971 Expressedin United States Currency (in thousands)-See Notes to Financial Statements, Appendix G
Amounts Paid in In currency In non- of member negotiable, other than non-interest- Subject to call Subscriptions United bearing, to meet Voting Power In United States demand obligations Percent Amaunt States dollars notes of Bank Number Percent Member Shares of total (Note D) dollars (Note A) (Note A) (Note E) of votes of total Afghanistan ...... 300 .13 $ 30,000 $ 300 $ 1,200 $ 1,500 $ 27,000 550 .21 Algeria ...... 800 .34 80,000 800 72 7,128 72,000 1,050 .39 Argentina...... 3,733 1.56 373,300 16,772 1,000 19,558 335,970 3,983 1.49 Australia...... 5,330 2.23 533,000 5,330 47,970 - 479,700 5,580 2.08 Austria...... 1,867 .78 186,700 1,867 16,803 - 168,030 2,117 .79 Belgium...... 5,545 2.32 554,500 5,545 40,594 9,311 499,050 5,795 2.17 Bolivia ...... 210 .09 21,000 210 13 1,877 18,900 460 .17 Botswana...... 32 .01 3,200 32 16 272 2,880 282 .11 Brazil...... 3,733 1.56 373,300 3,733 33,597 - 335,970 3,983 1.49 Burma ...... 507 .21 50,700 507 1,207 3,356 45,630 757 .28 Burundi ...... 150 .06 15,000 150 21 1,329 13,500 400 .15 Cameroon(')...... 200 .08 20,000 200 29 1,771 18,000 450 .17 Canada ...... 7,920 3.32 792,000 7,920 71,280 - 712,800 8,170 3.05 CentralAfrican Republic ...... 100 .04 10,000 100 38 862 9,000 350 .13 Ceylon...... 827 .35 82,700 827 908 6,535 74,430 1,077 .40 Chad...... 100 .04 10,000 100 24 876 9,000 350 .13 Chile ...... 933 .39 93,300 933 8,397 - 83,970 1,183 .44 China ...... 7,500 3.14 750,000 7,500 9,043 58,457 675,000 7,750 2.90 Colombia ...... 933 .39 93,300 9,330 - - 83,970 1,183 .44 Congo,Democratic Republic of .... . 960 .40 96,000 960 694 7,946 86,400 1,210 .45 Congo,People's Republic of°) ...... 100 .04 10,000 100 27 775 9,000 350 .13 CostaRica ...... 107 .05 10,700 467 603 - 9,630 357 .13 Cyprus...... 213 .09 21,300 213 21 1,896 19,170 463 .17 Dahomey ...... 100 .04 10,000 100 31 869 9,000 350 .13 Denmark ...... 2,211 .93 221,100 2,211 15,597 4,302 198,990 2,461 .92 DominicanRepublic ...... 143 .06 14,300 143 573 714 12,870 393 .15 Ecuador...... 171 .07 17,100 1,710 - - 15,390 421 .16 El Salvador ...... 107 .05 10,700 287 783 - 9,630 357 .13 EquatorialGuinea ...... 64 .03 6,400 64 576 - 5,760 314 .12 Ethiopia...... 114 .05 11,400 1,014 126 - 10,260 364 .14 Fiji . . . ll .05 11,100 111 999 - 9,990 361 .14 Finland...... 1,333 .56 133,300 1,333 11,997 - 119,970 1,583 .59 France... 10,500 4.40 1,050,000 10,500 94,500 - 945,000 10,750 4.02 Gabon ...... 100 .04 10,000 100 32 868 9,000 350 .13 Gambia,The ...... 53 .02 5,300 53 6 471 4,770 303 .11 Germany ...... 13,653 5.72 1,365,300 13,653 117,119 5,758 1,228,770 13,903 5.19 Ghana ...... 734 .31 73,400 734 1,892 4,714 66,060 984 .37 Greece ...... 667 .28 66,700 667 6,003 - 60,030 917 .34 Guatemala...... 107 .05 10,700 467 603 - 9,630 357 .13 Guinea...... 200 .08 20,000 200 1,800 - 18,000 450 .17 Guyana...... 160 .07 16,000 160 15 1,425 14,400 410 .15 Haiti ...... 150 .06 15,000 150 41 1,309 13,500 400 '.15 Honduras ...... 80 .03 8,000 620 - 180 7,200 330 .12 Iceland...... 150 .06 15,000 1,500 - - 13,500 400 .15 India ...... 9,000 3.77 900,000 9,000 26,617 54,383 810,000 9,250 3.46 Indonesia ...... 2,200 .92 220,000 2,200 698 19,102 198,000 2,450 r.92 Iran(2) ...... 1,286 .54 128,600 1,286 8,100 3,474 115,740 1,536 .57 Iraq ...... 640 .27 64,000 640 1,350 4,410 57,600 890 .33 Ireland ...... 853 .36 85,300 853 6,841 836 76,770 1,103 .41 Israel ...... 959 .40 95,900 4,644 1,219 3,727 86,310 1,209 .45 Italy...... 6,660 2.79 666,000 6,660 59,940 - 599,400 6,910 2.58 Ivory Coast...... 200 .08 20,000 200 1,800 - 18,000 450 .17 Jamaica(2) ...... 400 .17 40,000 2,620 25 1,355 36,000 650 .24 Japan ...... 10,230 4.29 1,023,000 10,230 92,070 - 920,700 10,480 3.92 Jordan ...... 163 .07 16,300 163 61 1,406 14,670 413 .15 Kenya...... 333 .14 33,300 333 1,751 1,246 29,970 583 .22 KhmerRepublic ...... 203 .09 20,300 203 18 1,809 18,270 453 .17 Korea ...... 533 .22 53,300 533 1,130 3,667 47,970 783 .29 Kuwait ...... 667 .28 66,700 667 6,003 - 60,030 917 .34 Laos ...... 100 .04 10,000 100 900 - 9,000 350 .13 Lebanon...... 90 .04 9,000 900 - - 8,100 340 .13
84 Appendix D InternationalBank for Reconstructionand Development
AmountsPaid in In currency In non- of member negotiable, otherthan non-interest- Subjectto call Subscriptions United bearing, to meet Voting Power In United States demand obligations Percent Amount States dollars notes of Bank Number Percent Member Shares of total (NoteD) dollars (NoteA) (NoteA) (NoteE) of votes of total Lesolho...... 32 .01 $ 3,200 $ 32 $ 7 $ 281 $ 2,880 282 .11 Liberia...... 213 .09 21,300 213 13 1,904 19,170 463 .17 Libya...... 200 .08 20,000 2,000 - - 18,000 450 .17 Luxembourg...... 200 .08 20,000 200 1,800 - 18,000 450 .17 MalagasyRepublic ...... 200 .08 20,000 200 41 1,759 18,000 450 .17 Malawi...... 150 .06 15,000 150 43 1,307 13,500 400 .15 Malaysia...... 1,333 .56 133,300 1,333 11,997 - 119,970 1,583 .59 Mali...... 173 .07 17,300 173 1,557 - 15,570 423 .16 Mauritania ...... 100 .04 10,000 100 26 874 9,000 350 .13 Mauritius...... 188 .08 18,800 188 18 1,674 16,920 438 .16 Mexico...... 2,080 .87 208,000 2,080 18,720 - 187,200 2,330 .87 Morocco...... 960 .40 96,000 960 99 8,541 86,400 1,210 .45 Nepal...... 100 .04 10,000 100 9 891 9,000 350 .13 Netherlands...... 5,923 2.48 592,300 5,923 49,500 3,807 533,070 6,173 2.31 NewZealand ...... 1,667 .70 166,700 1,667 129 14,874 150,030 1,917 .72 Nicaragua...... 80 .03 8,000 620 180 - 7,200 330 .12 Niger)...... 100 .04 10,000 100 26 776 9,000 350 .13 Nigeria...... 1,067 .45 106,700 1,067 396 9,207 96,030 1,317 .49 Norway...... 1,600 .67 160,000 1,600 14,400 - 144,000 1,850 .69 Pakistan...... 2,000 .84 200,000 2,000 2,049 15,951 180,000 2,250 .84 Panama ...... 176 .07 17,600 212 - 1,548 15,840 426 .16 Paraguay...... 60 .03 6,000 60 540 - 5,400 310 .12 Peru...... 635 .27 63,500 3,785 44 2,521 57,150 885 .33 Philippines...... 1,173 .49 117,300 3,873 1,172 6,685 105,570 1,423 .53 Portugal ...... , 800 .34 80,000 800 7,200 - 72,000 1,050 .39 Rwanda...... 150 .06 15,000 150 1,350 - 13,500 400 .15 SaudiArabia ...... 1,143 .48 114,300 1,143 22 10,265 102,870 1,393 .52 Senegal...... 333 .14 33,300 333 37 2,960 29,970 583 .22 SierraLeone ...... 150 .06 15,000 150 20 1,330 13,500 400 .15 Singapore...... 320 .13 32,000 320 2,880 - 28,800 570 .21 Somalia...... 150 .06 15,000 150 14 1,336 13,500 400 .15 SouthAfrica . . . 2,133 .89 213,300 2,133 19,197 - 191,970 2,383 .89 Spain...... 2,667 1.12 266,700 2,667 24,003 - 240,030 2,917 1.09 Sudan . .. . 600 .25 60,000 600 1,800 3,600 54,000 850 .32 Swaziland...... 64 .03 6,400 64 6 570 5,760 314 .12 Sweden ...... 2,400 1.01 240,000 2,400 21,600 - 216,000 2,650 .99 SyrianArab Republic...... 400 .17 40,000 400 44 3,556 36,000 650 .24 Tanzania...... 333 .14 33,300 333 106 2,891 29,970 583 .22 Thailand...... 1,013 .43 101,300 8,891 178 1,061 91,170 1,263 .47 Togo(')...... 150 .06 15,000 150 35 1,168 13,500 400 .15 Trinidad andTobago (2) .. .. 467 .20 46,700 2,190 24 2,456 42,030 717 .27 Tunisia...... 373 .16 37,300 373 74 3,283 33,570 623 .23 Turkey...... 1,150 .48 115,000 1,150 277 10,073 103,500 1,400 .52 Uganda...... 333 .14 33,300 333 78 2,919 29,970 583 .22 UnitedArab Republic ...... 1,421 .60 142,100 1,421 159 12,630 127,890 1,671 .62 UniteydKingdom t') ...... 26,000 10.89 2,600,000 26,000 231,674 - 2,340,00026,250 9.81 Unite'dStates ...... 63,500 26.60 6,350,000635,000 - - 5,715,00063,750 23.81 UpperVolta ...... 100 .04 10,000 100 26 874 9,000 350 .13 Uruguay ...... 411 .17 41,100 2,301 63 1,746 36,990 661 .25 Venezuela ...... 1,867 .78 186,700 18,670 - - 168,030 2,117 .79 Viet-Nam...... 427 .18 42,700 427 3,843 - 38,430 677 .25 YemenArab Republic ...... 85 .04 8,500 85- 8 757 7,650 335 .13 Yemen,People's Dem. Rep. of ...... 235 .10 23,500 235 22 2,093 21,150 485 .18 Yugoslavia...... 1,067 .45 106,700 10,473 197 - 96,030 1,317 .49 Zambia...... 533 .22 53,300 533 48 4,749 47,970 783 .29 TOTALS...... 238,710100.00 $23,871,000 $889,516 $1,112,524 $382,391 $21,483,900267,710 100.00
t') Amountsaggregating the equivalentof $2,669,321receivable as a resultof revaluationof thesecurrencies, are not includedin the "AmountsPaid in" columns. (2) The equivalentof $408,000has beenreceived from memberson accountof increasesin subscriptionswhich arein processof completion:Jamaica $46,000, Iran$294,000 and Trinidad and Tobago $68,000.
85 SummaryStatement of Loans
June30, 1971 Expressedin UnitedStates Currency (id thousands)-SeeN~otes to FinancialStatements, Appendix G
Disbursed Undisbursed2 Eftective Loansnot yet Membersliable as borroweror goorantor(') portion portion() loans eftective(3)
Algeria...... $ 10,915 $ - $ 10,915 $ - Argentina...... 194,560 130,094 324,654 149,975 Australia...... 124,975 9,843 134,818 22,275 Austria...... 46,316 - 46,316 Belgium...... 20,607 -20,607- Bolivia...... - - 23,250 Botswana...... - - - 32,000 Brazil...... i...... 289,175 377,669 666,844 160,050 Burma...... I...... 12,844 - 12,844 Cameroon...... 5,403 31,697 37,100 - Ceylon...... 26,334 33,011 59,345 - Chile...... 118,661 41,007 159,668 - China...... 94,571 132,035 226,606 68,900 Cofombia...... 372,772 194,7/3 567,545 152,530 Congo,People's Republic of...... 28,580 - 28,580 - CostaRica...... 40,842 26,320 67,162 - Cyprus...... 16,059 14,408 30,467 5,400 Denmark...... 28,659 - 28,659 - DominicanRepublic ...... 19,742 5,258 25,000 - Ecuador...... 32,873 6,280 39,153 8,000 ElSalvador ...... :..... 24,434 5,771 30,205 - Ethiopia...... 51,142 25,611 76,753 - Fiji ...... - .- - 11,800 Finland...... 120,721 33,542 154,263 - France...... 6,942 - 6,942 - Gabon...... 15,449 2,886 18,335 - Ghana...... 42,749 5,046 47,795 - Greece...... 17,528 27,937 45,465 24,500 Guatemala...... 15,665 12,508 28,173 4,000 Guinea...... 36,337 .28,163 64,500 9,000 Guyana...... 1,105 .6,695 7,800 5,400 Haiti...... 269 - 269 - Honduras...... 32,130 9,500 41,630 6,000 Iceland...... 20,146 .3,348 23,494 - India...... 488,157 88,387 576,544 - Iran...... 181,752 247,816 429,568 36,000 Iraq...... 13,060 5,038 18,098 - Ireland...... 6,289 27,238 33,527 10,000 Israel...... 84,003 141,843 125,846 - Italy...... 137,789 - 137,789 - IvoryCoast ...... 8,163 33,017 41,180 27,500 Jamaica...... 31,779 12,976 44,755 13,500 Japan...... 459,620 - 459,620 - Kenya 4,551 .29,799 34,350 22,900 ...... 4 Kenya,Tanzania and Uganda( ) ...... 54,483 83,717 138,200 - Korea...... 18,268 90,741 109,009 84,300 Lebanon...... 17,600 - 17,600 - Liberia...... 7,243 7,707 14,950- MalagasyRepublic ...... 3,600 7,500 11,100 - Malaysia...... 151,500 87,614 239,114 34,275 Mexico...... 620,828 143,464 764,292 73,600 Morocco...... 59,564 75,615 135,179 35,000 NewZealand ...... 80,486 15,746 96,232 .- Nicaragua...... 28,009 8,857 36,866- Nigeria...... 150,266 141,064 291,330 7,200 Norway...... 76,119 - 76,119 - Pakistan...... 343,239 119,482 462,721 - Panama...... 7,135 41,624 48,759 Paraguay...... 7,721 9,329 17,050 - Peru...... 125,068 52,327 177,395 - Philippines...... 127,322 71,507 198,829 8,000 Portugal...... 51,015 263 51,278 - Senegal...... 2,120 1,430 3,550 - SierraLeone ...... 6,296 4,269 10,565 - Singapore...... 60,098 29,004 89,102 - SouthAfrica ...... 2,106 .- 2,106 - Spain...... 153,720 54,404 208,124 102,700 Sudan...... 92,340 9,888 102,228 - Tanzania...... 4,487 37,623 42,110 Thailand...... 159,952 81,746 241,698 - Trinidadand Tobago ...... 9,106 15,629 24,735 3,000 86 Appendix E InternationalBank for ReconstructionandDevelopment
Disbursed Undisbursed Effective Loansnot yet Membersliable as borrower or guarantor(M portion portion(2) loans effective(M Tunisia...... $ 30,180 $ 43,621 $ 73,801 $ 23,825 Turkey...... 67,225 69,543 136,768 54,500 UnitErdArab Republic ...... 19,050 - 19,050 UnitedKingdDm ...... 84,540 - 84,540 Uruguay ...... 50,194 21,595 71,789 4,000 Venezuela...... 214,434 48,126 262,560 33,850 Yugoslavia...... 255,259 156,433 411,692 89,950 Zambia...... 26,921 72,719 99,640 _ Sub-Totalsmembers(')...... $6,451,162 $3,252,103 $9,703,265 $1,347,180 InternationalFinance Corporation ...... 57,900 142,100 200,000 TOTALS...... $6,509,062 $3,394,203(2) $9,903,265 $1,347,180(3) Add:Exchange adjustments ...... 76,916 76,916 $6,585,978 $9,980,181
Summaryof CurrenciesRepayable on theirown right (except Malta which although independent is not a EffectiveLoans memberof theBank). In all theseinstances(except inthe case of a Currency Amount Malaysia)loan to thethese Publicterritories Utilitieshad Boardassumed of Singaporeliability as guaranteed a borrowerorby Argentinepesos ...... $ 960 guarantor.In orderto avoiddouble counting, liabilities for these Australiandollars ...... 84,291 loansare shown in the abovetable only underthe nameof the Austrianschillings...... 26,783 originalmember (whose guarantee continues unaffected). These Belgianfrancs ...... 79,660 loansare shown below together with an indication of the member Burmesekyats ...... 1,561 underwhose name they are listed in theabove table. Canadiandollars ...... 219,732 Ceylonrupees ...... 2u...... 295 Jndis- Danishkroner ...... 23,927 portion portion Total Deutschemark ...... 1,374,597 BELGIUM Finnishmarkkaa ...... 16,969 *Burundiand Rwanda . $1,079 $ - $1,079 Frenchfrancs ...... 123,173 *B nDemocraticR epublicwof.. 19,368 - 19,368 Ghanaiannew cedis ...... 4...8.....3,913 F NE f Indianrupees ...... 48,107 FRANCE Iranianrials ...... 13,917 Algeria.... 3,007 - 3,007 Iraqidinars ...... 2 2...... ,281 Congo,People's Republic of Irish pounds ...... 111041...... andGabon ...... 2,172 - 2,172 Israelpounds ...... 22,627 Mauritania 1,762 - 1,762 Italianlire ...... 117,123 MALAYSIA Japaneseyen ...... 559,059 Singapore(Public Utilities Board). 5.710 - 5,710 Kuwaitidinars ...... 47,699 UNITEDKINGDOM Libyanpounds ...... 28,078 Kenya.. .. 2,438 - 2,438 Luxembourgfrancs ...... 3,260 *Kenya,Tanzania and Uganda.. . 107 - 107 Malaysiandollars ...... 16,577 Malta...... 23 - 23 Mexicanpesos ...... 28,382 Mauritius. . . 2,022 - 2,022 Netherlandsguilders ...... , .. 159,909 Nigeria...... 14,570 - 14,570 Norwegiankroner ...... I I 23,928 *SouthernRhodesia and Zambia ... 32,084 - 32,084 Portugueseescudos ...... 8,391 Singapore ..... 11,415 - 11,415 Poundssterling ...... 235,449 Swaziland...... 4,250 - 4,250 Singaporedollars ...... 3,098 Trinidadand Tobago ... 3,576 - 3,576 SouthAfrican rand ...... 36,452 Uganda...... 64 - 64 Spanishpesetas ...... 34,653 Zambia. . 4,477 - 4,477 Sudanesepounds ...... 3,097 'Loan made for joint benefitof territorieslisted (SouthernRhodesia is Swedishkronor ...... 53,486 includedin the membershipof the UnitedKingdom). Swissfrancs...... 209,178 NewTaiwan dollars ...... 9,415 Aloan has also been madetothe International Finance Corporation. UnitedStates dollars ...... 2,897,931 (2) Thisdoes not include $8,810,655 of effective loans which the Disbursedportion of effectiveloans held by Bank... $6,509,062 Bankhas agreed to sell.Of the undisbursed balance, the Bank has Add:Exchange adjustments ...... 76,916 enteredinto irrevocablecommitments to disburse $28,609,072. $6,585,978 (3) Agreementsproviding for theseloans have been signed, but heldby Bank.3,394,203nthe loansdo not becomeeffective and disbursementsthereunder heldBank by ...... 3,394_203 do notstart until the borrowersand guarantors, if any,take certain Effectiveloans held by Bank...... $9,980,181 actionand furnish certain documents to the Bank.This amount is netof $8,570,000of loans not yet effectivewhich the Bankhas (1) Loansare made (a) to themember or (b) to a politicalsub- agreedto sell.The total of effectiveand non-effective loans sold or divisionor a publicor a privateenterprise inthe territories of the agreedto besold is theequivalent of $2,373,291,375.In addition memberwith the member'sguarantee. In someinstances loans the Bankhas approved and indicated its willingnesssubject to weremade,made, withwith the the guaranteeguaranter' of a member,in territorieswhich Thesecertainloansconditions, have sinceto executebeen signed.two loans equivalent to $24,700,000. at thetime were included in thatmember's membership but which subsequentlybecame independent and members of the Bankin (4) Loanshared by members shown. 87 SummaryStatement of FundedDebt AppendixF InternationalBank for Reconstructionand Development
June 30, 1971 Expressed in United States Currency (in thousands)--See Notes to Financial Statements, Appendix G
Weighted average Principal Payable in interest rates Due dates PrtstandingM Canadiandollars ...... 5.95%o 1990-1993 $ 72,286 Deutschemark ...... 6.78% 1971-1986 1,296,199 Italianlire ...... 5.00% 1976 24,000 Japaneseyen(2) ...... 7.29% 1973-1976 419,444 Kuwaitidinars ...... 6.50% 1988 42,000 Libyanpounds ...... 8.00% 1975 28,000 Netherlandsguilders ...... 6.42% 1975-1988 71,666 Poundssterling ...... 4.. 61% 1974-1982 24,132 Swedishkronor ...... 6.00% 1992 14,498 Swissfrancs(3) ...... 4.61% 1972-1985 202,343 UnitedStates dollars (41 .. . 5.83% 1971-1995 3,229,594 TOTAL...... $5,424,162
(') The following table shows the aggregateprincipal amount of maturities, sinking fund requirements, and in the case of certain Canadian issues, non-cumulative purchase fund requirements each year for the five years following the date of this statement:
Period Amount July1,1971 to June30, 1972 ...... $ 573,436 July1, 1972 to June30, 1973 ...... 725,611 July1,1973 to June30, 1974 ...... 367,486 July1,1974 to June30, 1975 ...... 424,617 July1,1975 to June30, 1976 ...... 562,958 TOTAL...... $2,654,108
7 1 ) In addition, the Bank sold publicly in Japan, for settlement July 3, 1971, an issue of /e% JapaneseYen Bonds in the principal amount of Y 11,000 miUtion(US equivalent $30.6 miilion), to mature July 10, 1901. 31)In addition, the Bank sold publicly in Switzerland, for settlementJuly 1,1971, an issueof6a2 Y Swiss Franc Bonds in the principal amount of SwF 75 million (US equivalent $18.4 million), to mature July 1, 1986. (4) The Bank has entered into agreements to sell additional bonds totaling $17.1 million of one outstanding issue. These agreements provide for the delivery of such bonds to be made against payment therefor on various dates to and including August 2, 1972.
88 Notes to FinancialStatements Appendix G InternationalBank for Reconstructionand Development
June 30, 1971
Note A the balanceof $100,000,000by wayof grant to the International The portionof the subscriptionsto the capitalstock of the Bank DevelopmentAssociation. payablein the currenciesof the respectivemembers (such portion Consistentwith past practice,the SupplementalReserve Against being hereinaftercalled "restricted currency")can be used for Losseson Loansand Guaranteesand from CurrencyDevaluations lending purposesonly with the approvalof the memberscon- has beencharged and creditedduring the currentfiscal year with cerned.The amountsof $73,025,792under the heading"Due from the undermentionedamounts representing a netgain to the Bank banksand other depositories" and $382,390,842 under the heading as a resultof the revaluationof the amountsof earningsheld by the "Receivableon accountof subscribedcapital" are currencybal- Bank at the respectivedates of revaluationin the currencies ancesand notes, respectively,derived from restrictedcurrency. indicated: Article 11,Section 9 of the Articles of Agreementof the Bank providesfor the maintenanceas of the time of subscriptionof the Gain(loss) on Dateof valueof restrictedcurrency, requiring the memberto makeaddi- Currency revaluation revaluation tional paymentsto the Bankin the eventof a reductionin the par Argentinepesos ...... $ (9,435) August1970 valueof its currencyor a significantde facto depreciationof its Austrianschillings .495,495 May 1971 currencyin its territoriesand requiringthe Bankto reimbursethe Swissfrancs. 1,769.549 May 1971 memberin the eventof an increasein the par valueof its currency. - Theseobligations of the membersand the Bankbecome effective Total .. $2,255,609 immediatelyupon the happeningof thoseevents with respectto holdingsof restrictedcurrency represented by currencybalances Note D and notes, whereaswith respectto restrictedcurrency out on In terms of UnitedStates dollars of the weight and finenessin loan these obligationsbecome effective only as and when such effecton July 1, 1944. currencyis recoveredby the Bank. Somemembers have converted part or all of the Bank's holdings Note E of their restrictedcurrency into UnitedStates dollars to be used Subjectto call by the Bankonly whenrequired to meetthe obliga- without restrictionin the Bank'soperations, subject to the right tions of the Bankcreated by borrowingor by guaranteeingloans. of the Bankor the memberto reversethe transactionsat anytime, As to $19,096,800,000the restrictionon calls is imposedby the with immediateeffect as to dollars then held by the Bank, and Articlesof Agreement;as to $2,387,100,000by resolutionsof the as to dollars loaned,upon repaymentof the loans.Such dollars Boardof Governors. amountingto $79,306,298are not subject to the provisionof General Article I1, Section9 andare includedin thesefinancial statements, (1) Amountsin currencieshave been expressedin UnitedStates whererelevant, as "unrestricted." dollars:
Note B In the casesof 82 members,at the par valuesas specifiedin the A t o s e e s o l , i"Scheduleof Par Values" published by the InternationalMonetary Amountsof commissionsset aside pursuant to ArticleIV, Section6, Fundand in the casesof the remaining34 members,at the rates as a SpecialReserve to be held in liquid form andto be usedonly usedby suchmembers in makingpayments of capitalsubscriptions for the purposeof meetnglabilities of the Bankon Its borrowings to the Bank. Swissfrancs, a non-membercurrency, have been andguarantees. translatedinto UnitedStates dollars at the rate of 4.08415Swiss francs to 1 UnitedStates dollar. No representationis madethat Note C any currencyheld by the Bank is convertibleinto any othercur- Of the $211,747,168net incomeearned in the fiscal year ended rencyat any rate or rates. June 30, 1971,in July 1971 the ExecutiveDirectors allocated (2) The Bankhas a contributoryretirement plan for its staff which $101,747,168to the SupplementalReserve Against Losseson also coversthe staff of the InternationalFinance Corporation. Loansand Guarantees and from CurrencyDevaluations and recom- The assetsof the Staff RetirementFund are segregatedfrom the mendedto the Boardof Governorsthat an amountequal to the assetsof the Bankand are held in trust. The assetsand reserve balanceof $110,000,000be transferred by way of grant to the of the Planhave previously been included in the Bank's balance IntetnationalDevelopment Association. sheet.The costof the Plan not providedby the contributionsof Of the $212,869,275net incomeearned in the fiscal year ended participantswill be contributedby the Bankand the Corporation June30, 1970,the Bankin July 1970allocated $112,869,275 to the whichalso bearthe expenses.Contributions by the Bankto the SupplementalReserve Against Losseson Loansand Guarantees Planamounted to $4,737,874forthe fiscalyearended June 30,1971 andfrom CurrencyDevaluations and in September1970 transferred and$3,782,783 for the fiscal year endedJune 30, 1970.
89 Opinion of FinancialStatements Independent Auditor Covered by the Foregoing Opinion 1801 K STREET,N.W. WASHINGTON,D.C. 20006 JULY23, 1971
To INTERNATIONALBANK FOR RECONSTRUCTIONAND DEVELOPMENT WASHINGTON,D.C.
In our opinion,the accompanyingfinancial statements(Appen- BalanceSheet ...... AppendixA (page80) dix A through AppendixG) presentfairly, in terms of United Statescurrency, the financialposition of InternationalBank for Statementof Incomeand Expenses. AppendixB (page82) Reconstructionand Developmentat June 30, 1971, and the Statementof Sourceand Application resultsof its operationsand the sourcesand applicationsof funds of Funds... AppendixC (page83) for the year then ended, in conformity with generallyaccepted accountingprinciples applied on a basisconsistent with that of the Statementof Subscriptionsto CapitalStock precedingyear. Ourexamination of thesestatements was made in andVoting Power ...... AppendixD (page84) accordancewith generally accepted auditing standards, and accord- SummaryStatement of Loans...... AppendixE (page86) ingly includedsuch tests of the accountingrecords and such other auditingprocedures as we considered necessary inthe circumstances. SummaryStatement of FundedDebt ...... AppendixF (page88) Notesto FinancialStatements ...... AppendixG (page89) PRICEWATERHOUSE & CO.
90 Statementof LoansSigned Appendix H Duringthe FiscalYear 1970/71anDelomt InternationalBank for Reconstruction Expressedin UnitedStates Currency GuARANTOR Dateof Loan Interest Principal Purposeand Borrower Agreement Maturities rate amount Argentina Roads...... May5,1971 1975/1995 71/4% $ 67,500,000 Argentina (Guarantor) Railways-FerrocarrilesArgentinos ...... April 28, 1971 1975/1995 71/4% 84,000,000 Australia (Guarantor) Power-Papuaand New Guinea...... May26, 1971 1976/1996 71/4% 23,200,000 Botswana Industry ...... June30, 1971 1975/2000 7'A% 32,000,000 Brazil Education ...... June21, 1971 1981/2001 7 1 A% 8,400,000 Ports ...... June21, 1971 1976/1996 714% 45,000,000 Brazil (Guarantor) Power-CentraisEletricas do Sul do Brasil,S.A ...... April 5,1971 1977/1995 714% 70,000,000 WaterSupply-Superint. de Aguae Esgotosda Capital...... June21, 1971 1976/1996 714% 22,000,000 PollutionControl-Cia. Metro.de Saneamentode SaoPaulo ...... June21, 1971 1976/1996 714% 15,000,000 China Railways...... June11, 1971 1974/1986 7 A4% 15,000,000 China (Guarantor) Power-TaiwanPower Company ...... June11, 1971 1977/1991 7'A% 55,000,000 Colombia LandColonization ...... May28, 1971 1975/1990 7'A% 8,100,000 Colombia (Guarantor) Industry-Banco de la Republica...... May28, 1971 1972/1988 71/4% 40,000,000 Telecommunications-EmpresaNacional de Telecomunicaciones...... May28, 1971 1975/1991 71'% 15,000,000 WaterSupply-Empresa de Acueductoy Alcantarillado ...... May 28,1971 1978/2001 7'A% 88,000,000 WaterSupply-Empresas Publicas Municipales de Palmira ...... May28, 1971 1975/1996 71A% 2,000,000 Cyprus (Guarantor) WaterSupply-W. S. & SewageBoard of Nicosia ...... April 5,1971 1975/1995 714% 3,500,000 WaterSupply-W. S. & SewageBoard of Famagusta ...... April 5,1971 1975/1995 714% 1,900,000 Ecuador Industry ...... February5,1971 1972/1988 714% 8,000,000 Fiji Roads...... June30, 1971 1976/1995 714% 11,800,000 Finland Roads...... February17, 1971 1974/1986 714% 13,000,000 Finland (Guarantor) Industry-TeollistamisrahastoOy ...... October15, 1970 1973/1987 714% 20,000,000 Greece Education...... November5,1970 1976/1990 71/4% 13,800,000 Agriculture...... June21, 1971 1977/1991 714% 25,000,000 Guatemala Agriculture ...... February10, 1971 1976/1986 71A% 4,000,000 Guinea Transportation...... June25, 1971 1973/1992 714% 9,000,000 Guyana SeaDefenses ...... June24, 1971 1976/1996 71/4% 5,400,000 Honduras (Guarantor) Ports-EmpresaNacional Portuaria ...... June25, 1971 1975/1991 714% 6,000,000 Iceland Roads...... October12, 1970 1975/1990 71A% 4,100,000 Iran PoAer...... December18, 1970 1975/1990 71A% 60,000,000 Telecommunications...... December18, 1970 1976/1990 714% 36,000,000 Education .... I...... December18, 1970 1980/1995 714% 19,000,000 Iran (Guarantor) Indsstry-Industrial and Mining DevelopmentBank of Iran...... August7,1970 1972/1987 7% 50,000,000 Ireland (Guarantor) Power-ElectricitySupply Board of Ireland . ...I...... March3,1971 1976/1987 71/4% 20,000,000 Industry-The IndustrialCredit Company Limited ...... June2,1971 1973/1989 71/4% 10,000,000 Israel (Guarantor) Agriculture-Israel Bankof AgricultureLimited ...... October21, 1970 1974/1987 714% 20,000,000 Ivory Coast Roads ...... June22,1971 1975/1995 714% 20,500,000 Ivory Coast (Guarantor) Agriculture-Palmindustrie& Palmivoire...... June22,1971 1975/1990 71A% 1,900,000 Agriculture-Societepour Le Developpementet l'Exploitation du Palmiera Huile...... June22, 1971 1977/1992 71/4% 5,100,000 Jamaica Education...... I...... March25, 1971 1980/1995 71A% 13,500,000 (continued) 91 Statement of Loans Signed Appendix H Duringthe Fiscal Year 1970/71(cniudadDelomt InternationalBank for Reconstruction Expressed in United States Currency
GUARANTOR Dateof Loan Interest Principal Purposeand Borrower Agreement Maturities rate amount Jamaica (Guarantor) Agriculture-JamaicaDevelopment Bank ...... December28, 1970 1976/1987 7¼A% $ 3,700,000 Kenya (Guarantor) WaterSupply-The City Council of Nairobi ...... December11, 1970 1975/1990 71/4% 8,300,000 Power-TanaRiver Development Company Limited ...... June7,1971 1975/1996 71/4% 23,000,000 Korea Roads...... June29, 1971 1975/1995 7V4% 54,500,000 Korea (Guarantor) i Industry-KoreaDevelopment Finance Corporation ...... May17, 1971 1974/1985 7V4% 30,000,000 Malaysia Telecommunications...... June21, 1971 1976/1991 7'/o% 18,700,000 Ports...... June30, 1971 1975/1991 71/4% 16,100,000 Malaysia (Guarantor) Power-NationalElectricity Board ...... July16, 1970 1975/1990 7% 20,000,000 Mexico (Guarantor) Agriculture-NacionalFinanciera, S.A ...... June9,1971 1975/1991 714/% 75,000,000 Morocco (Guarantor) Tourism-CreditImmobilier et Hotelier ...... August12, 1970 1973/1989 7% 10,000,000 Industry-BanqueNationale pour le Developpement Economique...... May20, 1971 1973/1985 71/4% 35,000,000 New Zealand Railways ...... March1,1971 1973/1985 7'/4% 16,000,000 Nigeria Rehabilitation...... April23, 1971 1976/1991 71/4% 80,000,000 Agriculture...... June23, 1971 1977/1991 71/4% 7,200,000 Nigeria (Guarantor) Industry-TheNigerian Industrial Development Bank ...... August28, 1970 1973/1982 7% 10,000,000 Peru Roads ...... September14, 1970 1980/2000 7V4% 30,000,000 Philippines Agriculture...... February4,1971 1975/1990 71/4Y% 14,300,000 Roads...... April14, 1971 1975/1994 71/4% 8,000,000 Sierra Leone Roads...... October29, 1970 1975/1992 7V4% 3,700,000 Spain Agriculture...... June28, 1971 1976/1991 71/¼% 12,700,000 Spain (Guarantor) Railways-RedNacional de los FerrocarrilesEspaholes ...... June30, 1971 1975/1991 71¼4% 90,000,000 Tanzania (Guarantor) Power-TanzaniaElectric Supply Company Limited ...... December14, 1970 1976/1996 71/4% 30,000,000 Thailand (Guarantor) Ports-PortAuthority of Thailand ...... August6, 1970 1974/1990 7% 12,500,000 Trinidad and Tobago FamilyPlanning ...... May28, 1971 1981/1996 71/4% 3,000,000 Tunisia Roads...... June9,1971 1976/2000 7Vn4% 24,000,000 Tunisia (Guarantor) GasPipeline-Societe Tunisienne de l'Electricite et duGaz ...... February25, 1971 1974/1986 7V4% 7,500,000 Turkey Power...... June30,1971 1975/1994 7/4% 7,000,000 Education...... June9, 1971 1981/1996 7¼/% 13,500,000 Agriculture...... June22, 1971 1976/1991 7¼4% 10,000,000 Turkey (Guarantor) Industry-Industrial DevelopmentBank ...... November27, 1970 1973/1985 7¼V4% 40,000,000 Power-Turkiye Elektrik Kurumu...... June 22, 1971 1975/1996 7Y4% 24,000,000 Uruguay Agriculture...... June30, 1971 1975/1983 71/4% 4,000,000 Uruguay (Guarant6r) Power-Administraci6nGeneral de Las UsinasElectricas y Los Telefonosdel Estado ...... November25, 1970 1975/1995 71/4% 18,000,000 Venezuela (Guarantor) Telecommunications-Cia.An6nima Nacional Telefonos ...... June30, 1971 1976/1986 7A,% 35,000,000 Yugoslavia Roads...... June18, 1971 1976/1996 7¼% 35,000,000 Multi-PurposeWater Project ...... June30, 1971 1977/2000 7'A% 45,000,000 Yugoslavia (Guarantor) Tourism-Hotel "Bernardin" Piran...... June18, 1971 1976/1996 7V/4% 10,000,000 Zambia (Guarantor) Power-Kariba NorthBank Company Limited ...... July29, 1970 1975/1995 7% 40,000,000 TOTAL ...... $1,896,400,000 IDA Appendices
Page A Statementof Condition...... 94 B Statementof Incomeand Expenses ...... 95 C Stptementof Sourceand Application of Funds...... 96 D Statementof Holdingsof Currenciesand Obligations ..... 97 E SummaryStatement of DevelopmentCredits ...... 99 F Statementof Subscriptions,Voting Power and SupplementaryResources ...... 100 G Notesto FinancialStatements ...... 102
OPINIONOF INDEPENDENT AUDITOR ...... 103
H Statementof DevelopmentCredits Signed During the FiscalYear 1970/71 ...... 104
93 Statementof Condition AppendixA InternationalDevelopment Association
June30, 1971 Expressedin UnitedStates Currency (in thousands)-SeeNotes to FinancialStatements, Appendix G
Assets 1971 1970 DUEFROM BANKS AND OTHER DEPOSITORIES (SeeAppendix D) ' Unrestrictedcurrencies ...... $ 14,405 $ 34,378 Currenciessubject to restrictions-NoteA...... 56,320 60,072 $ 70,725 94,450 INVESTMENTS Obligationsof governments (At costor amortizedcost; faceamount $210,394-1971; $160,540-1970) ...... $ 211,779 156,391 Timedeposits ...... 31,682 15,252 Accruedinterest ...... 2,975 1,352 246,436 172,995 RECEIVABLEONACCOUNT OF SUBSCRIPTIONS AND SUPPLEMENTARYRESOURCES (SeeAppendix D) Non-negotiable,non-interest-bearing, demand obligations Unrestricted...... $ 857,232 690,734 Subjectto restrictions-NoteA...... 161,666 156,674 Amountsrequired to maintainvalue of currencyholdings-Note B...... 2,132 2,966 1,021,030 850,374 RECEIVABLEFROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT-NoteC...... 239,515 162,640 RECEIVABLEFROM SWISS CONFEDERATION-Note D0...... - 4,033 RECEIVABLEFROM NON-MEMBER-Note E...... 5,600 - DEVELOPMENTCREDITS (See Appendix E)-Note F ...... $3,340,052 2,772,941 Less-Developmentcredits signed but not yet effective ...... 327,200 350,264 Effectivedevelopment credits (Including undisbursed balance$1,036,507-1971; $681,227-1970) ...... 3,012,852 2,422,677 ACCRUEDSERVICE CHARGE ON DEVELOPMENT CREDITS-Note F...... 4,401 4,017 OTHERASSETS ...... 35 102 TOTAL...... $4,600,594 $3,711,288
Liabilities, Subscriptions, Other Resources and Accumulated Net Income LIABILITIES Accountspayable and other liabilities ...... $ - $ 40 Undisbursedbalance of effectivedevelopment credits (See Appendix E) ...... 1,036,507 681,227 Loanfrom Swiss Confederation-Note D (Includingproceeds not yet received; Nil-1971; $4,033-1970) ...... 12,732 12,100 SUBSCRIPTIONS(SeeAppendix F)-Note G ...... 1,016,462 1,014,262 Paymentson account of pendingsubscriptions ...... 35 102 SUPPLEMENTARYRESOURCES (SeeAppendix F)-Note G ...... $1,998,550 1,950;190 Lessportion for whichpayment is not yet due...... -370,240 1,998,550 1,579,950 TRANSFERSFROM INTERNATIONAL BANK FOR RECONSTRUCTION AND ; DEVELOPMENT-NoteC...... 485,000 385,000 CONTRIBUTIONFROM NON-MEMBER-Note E...... 5,600 - ACCUMULATEDNETINCOME At beginningof fiscalyear-July 1 ...... $ 38,607 31,837 Net(loss) gain on revaluation of currencies-NoteH...... (616) 67 $ 37,991 31,904 Fiscalyear to date(See Appendix B) ...... 7,717 6,703 45,708 38,607 TOTAL.$4,600,594 $3,711,288
94 Statement of Income and Expenses Appendix B InternationalDevelopment Association
Forthe FiscalYears Ended June 30, 1971and June 30, 1970 Expressedin UnitedStates Currency (in thousands)-SeeNotes to FinancialStatements, Appendix G July 1-June30 1970/71 1969/70 Income Incomefrom investments...... $13,245 $ 9,987 In.ome from developmentcredits ...... 13,745 12,491 GROSSINCOME ...... $26,990 $22,478
Expenses ManagementFee paid to International Bankfor Reconstructionand Development ...... $20,100 $15,800 Exchangeadjustments ...... (827) (25) GROSSEXPENSES ...... $19,273 $15,775 Net Income ...... $ 7,717 $ 6,703
...
95 Statement of Source and Appendix C Application of Funds InternationalAssociationDevelopment
For the Fiscal Years EndedJune 30, 1971and June 30, 1970 Expressedin United States Currency (in thousands)-See Notes to Financial Statements, Appendix G
July 1-June 30 1970/71 1969/70 Sourceof Funds Netincome ...... $ 7,717 $ 6,703 Itemsnot requiring or providingcash ...... 2,047 1,222 Cashprovided by operations ...... $ 5,670 $ 5,481 Subscriptionsand contributions from members ...... 253,881 199,769 IBRD transfers ...... 23,125 29,560 SwissLoan instalment ...... 4,033 4,033 Increasein SwissLoan as a resultof currencyrevaluation ...... 632 - Repaymentsof credits ...... 160 125 Other ...... 13 - TOTALSOURCE OF FUNDS ...... $287,514 $238,968 Applicationof Funds Disbursementsoncredits...... - ...... $235,054 $143,348 Netloss (gain) from currency revaluations ...... 616 (67) TOTALAPPLICATION OF FUNDS...... $235,670 $143,281 Increasein UnrestrictedCurrency and Investments.. $ 51,844 $ 95,687
96 Statementof Holdingsof Currencies AppendixD andandO~bligations ObligatosAssociation InternationalDevelopment
June30, 1971 Expressedin UnitedStates Currency (in thousands)-SeeNotes to FinancialStatements, Appendix G Non-negotiable,non-interest- bearing,demand obligationns onaccount of Unit of Initial Supplementary Member currency Currency subscriptions resources Total
Afghanistan...... Afghani...... $ 606 $ 303 $ - $ 909 Algeria...... Dinar-...... 3,627- 3,627 Argentina...... Peso .- ...... 16,947 - 16,947 Australia...... Dollar . . .448 - 24,143 24,591 Austria...... Schilling . . .120 - 8,331 8,451 Belgium...... Franc ... 1,651 - 2,230 3,881 Bolivia ...... PesoBoliviano ...... 954 - 954 Botswana...... Rand...... 144 - 144 Brazil...... Cruzeiro 16,947 - - 16,947 Burma ...... Kyat - .. . . - 1,818 - 1,818 Burundi ...... Franc ...... - .- 684 - 684 Cameroon ...... Franc -...... 909 - 909 Canada ...... Dollar 2 2. . . 22 - - 22 CentralAfrican Republic ...... Franc...... 450 - 450 Ceylon...... Rupee ...... - 2,727 - 2,727 Chad. ... Franc...... 450 - 450 Chile...... Escudo ...... 3,177 - - 3,177 China... NewTaiwan Dollar ...... 27,234 - 27,234 Colombia... Peso 3,177 - - 3,177 Congo,Democratic Republic of ...... Zaire ...... 348 - - 348 Congo,People's Republic of...... Franc...... - 400 - 400 CostaRica .... Colon . . .180 - - 180 Cyprus .... Pound...... 684 - 684 Dahomey...... Franc - . . . . . 450 - 450 Denmark ...... Krone...... 658 - 22,014 22,672 DominicanRepublic ...... Peso 360...... - - 360 Ecuador...... Sucre ... 585 - - 585 El Salvador...... Colon ... 270 - - 270 Ethiopia...... Dollar...... 450 - 450 Finland .. Markka 1,100 - 250 1,350 France .. Franc 173 - 93,947 94,120 Gabon .. Franc...... 450 - 450 Gambia,The ...... Pound-...... 240 - 240 Germany ...... DeutscheMark 1,459 - - 1,459 Ghana ...... NewCedi ...... 2,124 - 2,124 Greece.. Drachma ... 1,134 - - 1,134 Guatemala...... Quetzal 360 - - 360 Guinea ...... Franc 909 - - 909 Guyana...... Dollar - ..... 729 - 729 Haiti.. Gourde .... 684 - 684 Honduras.. Lempira 270 - - 270 India.. Rupee .. 602 30,658 - 31,260 Indosesia .. Rupiah 9,990 -. - 9,990 Iran .. Rial.- ... 4,086 - 4,086 Iraq. .. Dinar - .. . . - 684 - 684 IvoryCoast .. Franc .. ... 909 - 909 Japan .. Yen . . .2,390 - 62,237 64,627 Kenya .. Shilling - ..... 1,512 - 1,512 KhmerRepublic .. Riel .... 918 - 918 Korea.. Won . . . 1,134 - - 1,134 Kuwait.. Dinar ... 176 - 5,003 5,179 Laos.. Kip ... 210 240 - 450 Lebanon.. Pound. . . .. 405 - - 405 Lesotho . . Rand...... 144 - 144 Liberia.. Dollar .. ... 684 - 684 (continued) 97 Statement of Holdings of Currencies Appendix D dnol + ~~~~~~~~~~~~~~~~~~~~~~InternationalDevelopment and Obligations (continued) Associatiorn
June 30, 1971 Expressedin United States Currency (in thousands)-See Notes to Financial Statements, Appendix G
Non-negotiable, non-interest- bearing, demand obligations nn account of Unit of Initial Supplementary Meinber currency Currency subscriptions resources Total Libya...... Pound...... $ - $ 909 $ - $ 909 MalagasyRepublic ...... Franc ...... 182 727 - -909 Malawi...... Kwacha ...... - 684 - 684 Malaysia...... : Dollar ...... - 2,268 - 2,268 Mali. Franc...... 783 - - 783 Mauritania.Franc ...... - 450 - 450 Mauritius.Rupee ...... 2 772 - 774 Mexico.Peso .. 6,827 - - 6,827 Morocco. Dirham...... - 3,177 - 3,177 Nepal.Rupee ...... - 450 - 450 Netherlands.Guilder ...... 518 - 27,180 27,698 Nicaragua.Cordoba ...... 270 - - 270 Niger. Franc...... 400- 400 Nigeria.Pound ...... - 3,024 - 3,024 Norway.Krone ...... 920 - 1,090 2,010 Pakistan.Rupee ...... - 9,081 - 9,081 Panama.Balboa ...... 4 - - 4 Paraguay.Guarani ...... 270 - - 270 Peru.Sol ...... - 1,593 - 1,593 Philippines.Peso ...... 5 4,531 - 4,536 Rwanda. Franc...... 684 - - 684 SaudiArabia .Riyal ...... - 3,330 - 3,330 Senegal.Franc ...... - 1,512 - 1,512 SierraLeone .Leone ...... - 684 - 684 Somalia...... Shilling...... - 684 - 684 SouthAfrica ...... Rand.1,298 - - 1,298 Spain...... Peseta...... 4,929 1,557 - 6,486 Sudan...... Pound...... - 909 - 909 Swaziland...... Rand...... - 288 - 288 Sweden...... Krona.1,157 - 4,284 5,441 SyrianArab Republic ...... Pound...... 342 513 - 855 Tanzania...... Shilling...... - 1,512 - 1,512 Thailand...... Baht...... - 2,727 - 2,727 Togo...... Franc...... - 608 - 608 Tunisia...... Dinar...... - 1,359 - 1,359 Turkey...... Lira...... - 5,220 - 5,220 Uganda.. Shilling...... - 1,512 - 1,512 UnitedArab Republic ...... Pound...... - 4,572 - 4,572 UnitedKingdom ...... Pound...... 1,200 - 115,216 116,416 UnitedStates ...... Dollar...... 1,104 - 491,307 492,411 UpperVolta ...... Franc...... - 450 - 450 Viet-Nam...... Piastre...... 1,359 - - 1,359 YemenArab Republic ...... Rial...... - 387 - 387 Yemen,People's Democratic Republicof...... Dinar...... - 1,062 - 1,062 Zambia...... Kwacha...... - 2,421 - 2,421 Totals-MemberCurrencies .$70,715 $161,666 $857,232 $1,089,613 Non-MemberCurrency (Switzerland) .10 - - 10 TOTALS.$70,725 $161,666 $857,232 $1,089,623(l)
(1) Of this amount the equivalent of $871,636,474 is unrestricted and the equivalent of $1,087,076,075 is subject to maintenanceof value-Note B.
98 Summary Statement of Development Credits Appendix E InternationalDevelopment June30, 1971Asoitn Expressedin UnitedStaten Currency (in thousands)-SeeNotes tn FinancialStatemnents, Appendix G Memberin whoxe Effectine Development territoriesdevelnpment Disbursed Undisbursed devnlopment creditsnut yet creditshave been made(') portion portion(') credits effective()l Afghanistan...... $ 849 $ 9,428 $ 10,277 $ 5,000 Austtalia: Papuaand New Guinea...... 2,950 8,050 11,000 - Bolivia...... 18,985 6,815 25,800 6,800 Botswana...... 5,662 3,438 9,100 - BurtAdi...... 1,485 1,795 3,280 - Cameroon...... 10,176 19,824 30,000 - CentralAfrican Republic...... 1,615 6,885 8,500 Ceylon...... 2,289 17,357 19,646 - Chad...... 626 5,274 5,900 2,200 Chile...... 18,998 - 18,998 China...... 13,074 -13,074- Colombia...... 19,500 - 19,500 - Congo,Democratic Republic of ...... 2,358 8,642 11,000 7,000 Congo,People's Republic of...... 597 1,533 2,130 3,500 CostaRica...... 4,550 - 4,550 Dahomey...... 1,657 6,443 8,100 DominicanRepublic ...... - 4,000 4,000 5,000 Ecuador...... 6,893 7,707 14,600 10,000 ElSalvador ...... 7,999 - 7,999 5,600 Ethiopia.,...... 24,719 10,281 35,000 9,500 Gambia,The...... 43 2,057 2,100 Ghana...... 11,659 13,141 24,800 7,100 Guyana...... 487 2,413 2,900 2,200 Haiti...... 350 - 350 - Honduras...... 15,697 8,331 24,028 - India...... 1,100,434 271,607 1,372,041 135,000 Indonesia...... 20,556 150,344 170,900 56,500 Jordan...... 9,248 767 10,015 6,000 Kenya...... 33,346 27,954 61,300 Korea...... 37,407 20,531 57,938 7,000 Lesotho...... 4,100 - 4,100 MalagasyRepublic ...... 11,884 17,216 29,100 Malawi...... 20,765 11,985 32,750 7,250 Mali...... 7,088 9,712 16,800 - Mauritania...... 7,827 1,873 9,700 Mauritius...... - 5,200 5,200 Morocco...... 6,820 11,480 18,300 - Nepal...... 146 4,054 4,200 Nicaragua...... 2,995 - 2,995 - Niger:...... 5,097 8,806 13,903 - Nigeria...... 17,494 17,811 35,305 Pakistan...... -...... 297,564 195,314 492,878 4,000 Paraguay...... 19,266 2,134 21,400 - Rwanda...... 172 9,128 9,300 - Senegal...... 9,498 7,602 17,100 7,050 SierraLeone ...... 27 6,473 6,500 Soma-lia...... 8,455 561 9,016 3,300 Sudan....l ...... 12,493 9,007 21,500 Swaziland...... 2,800 - 2,800 SyrianArab Republic ...... 4,981 3,519 8,500 Tanzania...... 38,292 22,408 . 60,700- Togof...... I...... I...... 2,352. 1,348 3,700- Tunisia...... 18,741 21,222 39,963 4,800 Turkey:...... 85,453 6,863 92,316 19,500 Uganda...... 17,815 15,185 33,000 11,300 UnitedArab Republic ...... - 26,000 26,000 UpperVolta ...... 11 6,989 7,000 Yemen,People's Democratic Republic of...... - -. 1,600 TOTALS...... $1,976,345 $1,036,507 $3,012,852 $327,200
(I) All developmentcredits have been made to membergovernments or to the governmentof a territory of a member. (2) Of the undisbursedbalance the Associationhas entered into irrevocablecommitments to disburse$306,063. (a) Agreementsin the amountof $327,200,000providing for thesedevelopment credits bave been signed, but the developmentcredits do not becomeeftective and disbursementsthereunder dx not start until the burrowertakes certain action and tarnishes certain documents la the Association.
99 Statementof Subscriptions,Voting Power and SupplementaryResources June30, 1971 Expressedin UnitedStates Currency (in thousands)-SeeNotes to FinancialStatements, Appendix G Supplementary Subscriptions VotingPower Resources Total Snubscriptionas Amount and (NotesB Percent Number Percent Amount Supplementary Member(') and G) of total of votes of total (NotesB and G) Resources
Australia ...... $ 20,180 1.99 4,536 1.77 $ 43,800 $ 63,980 Austria ...... 5,040 .50 1,508 .59 13,200 18,240 Belgium ...... 8,250 .81 2,150 .84 28,650 36,900 Canada ...... 37,830 3.72 8,066 3.14 116,700 154,530 Denmark ...... 8,740 .86 2,248 .87 35,700 44f,440 Finland ...... 3,830 .38 1,266 .49 6,378 10,208 France ...... 52,960 5.21 11,092 4.32 159,072 212,032 Germany ...... 52,960 5.21 11,092 4.32 189,600 242,560 Italy ...... 18,160 1.79 4,132 1.61 78,360 96,520 Japan ...... 33,590 3.30 7,218 2.81 107,730 141,320 Kuwait ...... 3,360 .33 1,172 .46 8,760 12,120 Luxembourg ...... 375 .04 575 .22 975 1,350 Netherlands...... 27,740 2.73 6,048 2.35 45,780 73,520 Norway ...... 6,720 .66 1,844 .72 18,600 25,320 South Africa ...... 10,090 .99 2,518 .98 6,990 17,080 Sweden ...... 10,090 .99 2,518 .98 94,135 104,225 United Kingdom...... 131,140 12.90 26,728 10.41 252,120 383,260 United States...... 320,290 31.51 64,558 25.14 792,000 1,112,290 TOTALS PART I MEMBERS...... $ 751,345 73.92 159,269 62.02 $1,998,550 $2,749,895
Afghanistan.$ 1,010 .10 702 .27 $ - $ 1,010 Algeria ...... 4,030 .40 1,306 .51 - 4,030 Argentina ...... 18,830 1.85 4,266 1.66 - 18,830 Bolivia ...... 1,060 .10 712 .28 - 1,060 Botswana...... 160 .02 532 .21 - 160 Brazil ...... 18,830 1.85 4,266 1.66 - 18,830 Burma ...... 2,020 .20 904 .35 - 2,020 Burundi ...... 760 .07 652 .26 - 760 Cameroon...... 1,010 .10 702 .27 - 1,010 Central African Republic...... 500 .05 600 .23 - 500 Ceylon ...... 3,030 .30 1,106 .43 - 3,030 Chad ...... 500 .05 600 .23 - 500 Chile ...... 3,530 .35 1,206 .47 - 3,530 China ...... 30,260 2.98 6,552 2.55 - 30,260 Colombia ...... 3,530 .35 1,206 .47 - 3,530 Congo, Democratic Republic of...... 3,020(2) .30 1,104 .43 - 3,020 Congo, People's Republic of ...... 500...... 5(2) .05 600 .23 - 500 Costa Rica...... 200(0) .02 540 .21 - 200 Cyprus ...... 760 .07 652 .26 - 76C Dahomey...... 500 .05 600 .23 - 50C Dominican Republic...... 400 .04 580 .23 - 40C Ecuador...... 650 .06 630 .25 - 65C El Salvador...... 300 .03 560 .22 - 230( Ethiopia...... 500 .05 600 .23 - 50( Gabon...... 500 .05 600 .23 - 50( Gambia, The ...... 267 .03 553 .22 - 26i Ghana ...... 2,360 .23 972 .38 - 2,36( Greece ...... 2,520 .25 1,004 .39 - 2,52( Guatemala ...... 400 .04 580 .23 - 400 Guinea...... 1,010 .10 702 .27 - 1,01C Guyana...... 810 .08 662 .26 - 810 Haiti ...... 760 .07 652 .26 - 760 Honduras...... 300 .03 560 .22 - 300 Iceland...... 100 .01 520 .20 - 100 India...... 40,350 3.97 8,570 3.34 - 40,350 Indonesia...... 11,100 1.09 2,720 1.06 - 11,100 Iran...... 4,540 .45 1,408 .55 - 4,540 Iraq ...... 760 .07 652 .26 - 760
100 AppendixF InternationalDevelopment Association
Supplementary Subscriptions VotingPower Resources Tota ______Subscriptions Amount and (NotesB Percent Number Percent Amount Supplementary Member(X) andG) of total of votes of total (NotesB and G) Resources Ireland...... 3,030 .30 1,106 .43 $ - $ 3,030 Israel...... 1,680 .17 836 .32 - 1,680 IvoryCoast ...... 1,010 .10 702 .27 - 1,010 Jordan...... 300 .03 560 .22 - 300 Kenya...... 1,680 .17 836 .32 - 1,680 KhmerRepublic ...... 1,020 .10 704 .28 - 1,020 Korea ...... 1,260 .12 752 .29 - 1,260 Laos...... 500 .05 600 .23 - 500 Lebanon...... 450 .04 590 .23 - 450 Lesotho...... 160 .02 532 .21 - 160 Liberia ...... 760 .07 652 .26 - 760 Libya...... 1,010 .10 702 .27 - 1,010 MalagasyRepublic ...... 1,010 .10 702 .27 - 1,010 Malawi ...... 760 .07 652 .26 - 760 Malaysia...... 2,520 .25 1,004 .39 - 2,520 Mali...... 870 .09 674 .26 - 870 Mauritania...... 500 .05 600 .23 - 500 Mauritius...... 860 .08 672 .26 - 860 Mexico...... 8,740 .86 2,248 .87 - 8,740 Morocco...... 3,530 .35 1,206 .47 - 3,530 Nepal...... 500 .05 600 .23 - 500 Nicaragua...... 300 .03 560 .22 - 300 Niger...... 500(2) .05 600 .23 - 500 Nigeria...... 3,360 .33 1,172 .46 - 3,360 Pakistan...... 10,090 .99 2,518 .98 - 10,090 Panama...... 20 (4) 504 .20 - 20 Paraguay...... 300 .03 560 .22 - 300 Peru ...... 1,770 .17 854 .33 - 1,770 Philippines...... 5,040 .50 1,508 .59 - 5,040 Rwanda...... 760 .07 652 .26 - 760 SaudiArabia ...... 3,700 .36 1,240 .48 - 3,700 Senegal...... 1,680 .17 836 .32 - 1,680 SierraLeone ...... 760 .07 652 .26 - 760 Somalia...... 760 .07 652 .26 - 760 Spain ...... 10,090 .99 2,518 .98 - 10,090 Sudan...... 1,010 .10 702 .27 - 1,010 Swaziland...... 320 .03 564 .22 - 320 SyrianArab Republic ...... 950 .09 690 .27 - 950 Tanzania ...... 1,680 .17 836 .32 - 1,680 Thailand...... 3,030 .30 1,106 .43 - 3,030 Togo...... 760(2) .07 652 .26 - 760 Tunisia...... 1,510 .15 802 .31 - 1,510 Turkey...... 5,800 .57 1,660 .65 - 5,800 Uganda ...... 1,680 .17 836 .32 - 1,680 UnitedArab Republic ...... 5,080 .50 1,516 .59 - 5,080 UpperVolta ...... 500 .05 600 .23 - 500 Viet-Kam...... 1,510 .15 802 .31 - 1,510 YemenArab Republic ...... 430 .04 586 .23 - 430 Yemen,People's Democratic Republic of ...... 1,180 .12 736 .29 - 1,180 Yugoslavia...... 4,040 .40 1,308 .51 - 4,040 Zambia...... 2,690 .26 1,038 .40 - 2,690 TOTALSPART 11 MEMBERS-Note A...... $ 265,117 26.08 97,523 37.98 $ - $ 265,117 GRANDTOTALS ...... $1,016,462 100.00 256,792 100.00 $1,998,550 $3,015,012
(1) Memberswhose subscriptions may be treelyused or exchangedby the Associationand who haveparticipated in the replenishmentof the Association'sresources areincluded in PartI. All other membersare included in Part II. (0) Includesamounts aggregating the equivalentot $2,546,098receivable as a resultof revaluationof the currenciesof thesemembers. (1) Doesnot include $2,720 paid as the first instalmentof CostaRica's additional subscription under the third replenishment. (4) Lessthan .005percent. General:$32,000 has been received from EquatorialGuinea on accountof its subscriptionpending admission to membership.
101 Notes to FinancialStatements Appendix G InternationalDevelopment Association
June30, 1971
Note A and the accruedservice charge are expressedin terms of )Jnited Pursuantto Article IV, Section1 (a) of theArticles of Agreementof Statesdollars of the weightand finenessin effect on January1, the Association,these amounts may be usedby the Associationfor 1960and the equivalentis payableby the borrowersin curreRcies administrativeexpenses incurred by the Associationin the terri- whichthe Associationdetermines to be freely convertibleor freely tories of any memberwhose currency is involvedand, insofaras exchangeableby the Associationfor currenciesof other members consistentwith sound monetarypolicies, in paymentfor goods of the Association,except that such amountwould be reducedif and servicesproduced in the territories of such memberand (a) thereis a uniformproportionate reduction in the par valuesof requiredfor projectsfinanced by the Associationand locatedin the currenciesof all membersof the InternationalMonetaryTund such territories;and in additionwhen and to the extent justified or (b) the Associationso decidesbecause of a substantialreduction bytheeconomicandfinancialsituationofthememberconcerned as in the valueof one or moremajor currenciesof members.The determinedby agreementbetween the member and the Association, foregoingdoes not apply to a creditof $9,000,000which is expressed such currencyshall be freely convertibleor otherwiseusable for and is repayablein legaltender dollars. projectsfinanced by the Associationand locatedoutside the terri- toriesof the member. Note G Subscriptionsand supplementary resources are expressedin terms Note B of UnitedStates dollars of the weight and finenessin effect on Article IV, Section2 providesfor the maintenanceas of the time January1,1960. of subscriptionof the valueof the Association'sholdings of the currency (or substitutednotes) representingninety percent of Note H each member'sinitial subscription,to the extent that such cur- The accumulatednet income has been charged with $615,846 rency has not been initially disbursedor exchangedfor the cur- representinga netloss to the Associationas a resultof the revalua- rency of anothermember. This Sectionrequires the memberto tion on the booksof the Associationof the loan repayableto the make additionalpayments to the Associationin the event of a SwissConfederation and of its holdingsof Swissfrancs and Austrian reductionin the par valueof its currencyor a significantde facto schillings at the datesof revaluationof these two currenciesin depreciationof its currencyin its territoriesand requiresthe May1971. Associationto reimbursethe memberin the eventof an increase in the parvalueof its currencyora significantde facto appreciation General of its currencyin its territories. (1) Amountsin currencieshave been expressed in UnitedStates Supplementaryresources of the Associationhave, by agreement, dollars: the same respectiverights and obligationsas to maintenanceof In the casesof 76 members,at the par valuesas specifiedin the value as are set forth in Article IV, Section2, of the Articles of "Scheduleof ParValues" published by the InternationalMonetary the Association. Fundand in the casesof the remaining31 members,at the rates The equivalentof $2-546,098is due from four membersand the usedby such membersin makingpayments of subscriptionsand equivalentof $413,801is payableto one memberin order to main- supplementaryresources to the Association.Swiss francs, a non- tain the valueof the Association'scurrency holdings as required membercurrency, have been translated into UnitedStates dollars underArticle IV, Section2. at the rate of 4.08415Swiss francs to 1 UnitedStates dollar. No representationis madethat any currencyheld by the Association Note C is convertibleinto any othercurrency at any rate or rates. The InternationalBank for Reconstructionand Developmenthas authorizedtransfers, by wayof grants,to the Associationtotaling (2) The Boardof Governorshas authonzedthe Associatonto $485,000,000from the net incomeof the Bankfor the fiscalyears acceptthefollowingadditionalresourcesfrom its membercountries endedJune 30, 1964through 1970. Of this amount,$245,485,000 as a third replenishmentof the Association'sresources: had beenreceived as of June30, 1971. (a)the aggregateof $2,398,080,000from Part I memberspayable Note D in beforefreely November convertible8 incurrencies eachof inthe three years equal 1971,instalments 1972 and on 1973 or TheAssociation has borrowed SwF 52 million (approximately US (unlessthose dates are postponed asprovided in the resolution). equivalent$12.7 million) from the SwissConfederation. The loan, Theseresources would be dividedinto amountsfor subscriptions whichhas beenreceived in full, carriesno interestand is repayable carrying voting rights and contributionsnot carrying voting in forty annualinstalments beginning July 1, 1979.The first ten rights; and instalmentswill be at 1% eachof the principal amountand the remainingthirtyinstalmentswillbeat3%ofsuchprincipalamount. (b) the aggregateof $9,872,720from three Part 11 mewbers In connectionwith the third replenishmentof the resourcesof the (Ireland, Spainand Yugoslavia)payable in usableform on or Association(see General Note) the Governmentof Switzerlandhas beforethe datesstated above. These resources would be made proposedto Parliamentthat a loan of SwF 130 million(approxi- in the form of contributionsnot carryingvoting rights. mately USequivalent $31.8 million) be madeto the Association. In connectionwith the replenishment,arrangements have'been Underthe proposedterms of the loanthe proceedswill bemade madeto permitthe Part11 members to maintaintheir relative availablein three equal instalmentsin 1971,1972 and 1973and voting powerand for that purposethey have beenauthorized to be repayableover a 50-yearperiod without interest. make subscriptionscarrying voting rights in the aggregateof Note E $10,303,600payable in the currenciesof the subscribingmembers New Zealand,which is not a memberof the Association,has on or beforethe datesstated above. agreedto make a voluntarycontribution of $NZ5 million (US Noneof the abovesubscriptions and contributionswould become equivalent$5.6 million) to the Association,to be paidin five equal payableunless members, including at least 12 Part I members, instalments.The fir,st instalmentwill be paid in New Zealand's whosesubscriptions and contributionsaggregate not less than financialyear whichcommenced on April 1,1971 and the remaining $1,900,000,000shall eachhave given the Association,on or before four will be paidin April of eachof the succeedingyears. September30, 1971,or such later dateas the ExecutiveDirectors NoteF maydetermine, formal notificationthat it will makeboth the sub- NoteF scription and contribution authorizedfor such member in ac- The principal disbursedand outstanding on developmentcredits cordancewith the termsof the resolution.
102 Opinion of FinancialStatements Independent Auditor Covered by the Foregoing Opinion
1801K STREET,N.W. WASHINGTON,D.C. 20006 JULY23, 1971
To INTERNATIONALDEVELOPMENT ASSOCIATION WASHINGTON,D.C.
In ouropinion, the accompanyingfinancial statements (Appendix Statementof Condition...... AppendixA (page94) A throughAppendix G) presentfairly, in termsof UnitedStates currency,the financialposition of InternationalDevelopment StatementofIncome and Expenses. AppendixB (page95) Associationat June 30, 1971, and the results of its operationsand Statementof Sourceand Application thesources and applications of funds for theyear then ended, in of Funds... AppendixC (page96) conformitywith generally accepted accounting principles applied Statementof Holdingsof Currencies ona basisconsistent with that of thepreceding year. Our examina- tion of thesestatements was made in accordancewith generally andObligations ...... AppendixD (page97) acceptedauditing standards, and accordingly included such tests SummaryStatement of Development of the accountingrecords and such other auditing procedures as Credits...... AppendixE (page99) weconsidered necessary inthe circumstances. Statementof Subscriptions,Voting Power andSupplementary Resources ...... AppendixF (page100) PRICEWATERHOUSE & CO. Notesto FinancialStatements ...... AppendixG (page102)
103 Statementof DevelopmentCredits SignedDuring the FiscalYear 1970/71
Expressedin UnitedStates Currency Dateof Credit Service Principal Bnrrnwerand Purpose - Agreement Maiurities charge amount Afghanistan Agriculture...... June11, 1971 1981/2020 %/% $ 5,000,000 Bolivia Agriculture...... June25, 1971 1981/2021 Y4% 6,800,000 Botswana WaterSupply ...... February10,1971 1981/2020Y4% 3,000,000 Cameroon Port...... January14, 1971 1981/2020 Y4% 1,500,000 Chad Education...... June16, 1971 1981/2020 Y4% 2,200,000 Congo,Democratic Republic of RiverTransport ...... June21, 1971 1981/2021Y4% 7,000,000 Congo,People's Republic of Education...... March26, 1971 1981/2020Y/ % 3,500,000 Dahomey Roads...... September9, 1970 1981/2020 3/% 3,500,000 DominicanRepublic Education...... February18, 1971 1981/2020 Y4 4,000,000 Agriculture...... May19, 1971 1981/2020 35 5,000,000 Ecuador Agriculture...... December10, 1970 1981/2020 Y4 10,000,000 ElSalvador Power...... January13, 1971 1981/2020 Y4% 5,600,000 Ethiopia Education...... May6, 1971 1981/2020 3/%9,500,000 Ghana Power...... June21, 1971 1981/2021 Y4% 7,100,000 Guyana Agriculture...... November27, 1970 1981/2020 ,4% 2,200,000 India Agriculture...... January8, 1971 1981/2020 1%vo 24,400,000 Agriculture,...... January28, 1971 1980/2020 14% 6,000,000 Telecommunications...... May3, 1971 1981/2020 1/4%Y 78,000,000 Power...... May3, 1971 1981/2021 Y4% 75,00(00 Agriculture...... June11, 1971 1981/2021 14%Y 25,000,000 Agriculture...... June11, 1971 1981/2021 /4% 35,000,000 Indonesia Telecommunications...... July13, 1970 1980/2020 Y4% 12,800,000 Fisheries...... July13, 1970 1980/2020 /4 % 3,500,000 TechnicalAssistance ...... September15, 1970 1980/2020 14% 4,000,000 Education...... November6,1970 1980/2020 14% 4,600,000 Agriculture...... November6,1970 1980/2020314% 14,500,000 Agriculture...... May19, 1971 1981/2021 /4%To 7,500,000 Agriculture...... June24, 1971 1981/2021 Y4% 15,000,000 Roads...... June24, 1971 1981/2021 14% 34,000,000 Jordan Roads...... June28, 1971 1981/2021 14% 6,000,000
104 AppendixH InternationalDevelopment Association
Dateot Credit Service Principal Borrowerand Purpose Agreement Maturities charge amount Kenya Roads...... December28, 1970 1981/2020 3% $ 12,600,000 Korea Agriculture...... February11, 1971 1981/20203 /4% 7,000,000 MalagasyRepublic Agriculture...... August17, 1970 1980/2020 Y4% 5,000,000 Malawi Agriculture ...... May13, 1971 1981/2021 3% 7,250,000 Mauritius Agriculture...... April 9,1971 1981/2021 34% 5,200,000 Nepal Roads ...... December21, 1970 1981/2020 Y4% 2,500,000 Niger Roads...... January29, 1971 1981/2020 34% 5,700,000 Pakistan Power ...... August14, 1970 1980/20203%% 23,000,000 Rehabilitation...... January13, 1971 1981/2020/ 4% 25,000,000 Senegal Agriculture...... June18, 1971 1981/2021 34% 3,700,000 Education...... June18, 1971 1981/20213 4% 2,000,000 LandSettlement ...... June18, 1971 1981/2021 3/4 % 1,350,000 Sierra Leone Roads...... October29, 1970 1981/20203 4% 3,500,000 Somalia Education...... June3, 1971 1981/2020 3/4% 3,300,000 Tanzania Agriculture...... October9,1970 1980/20203 4% 9,000,000 Education...... February5,1971 1981/2020 3/4% 3,300,000 Tunisia FamilyPlanning ...... April 5,1971 1981/20203 /% 4,800,000 Turkey Agriculture...... February22, 1971 1981/2020 %3% 4,500,000 Agriculture ...... June22, 1971 1981/2021 34% 15,000,000 Uganda Agriculture...... July24, 1970 1980/2020 3/4% 4,000,000 Education...... June23, 1971 1981/20213% 7,300,000 UpperVolta Agriculture ...... December30, 1970 1981/2020 3% 6,200,000 Yemen,People's Democratic Republic of Roads...... April 21,1971 1981/2020 34% 1,600,000 TOTAL . $584,000,000
105 106 Bank/IDAAppendices
Page 1 BankLoans and IDA Creditsby Purposeand Area...... 108 2 BankLoans and IDA Creditsby Country...... 110 3 AdjninistrativeBudgets of the Bankand IDA...... 112 4 Governorsand Alternates of the Bankand IDA...... 113 5 ExecutiveDirectors and Alternatesof the Bankand IDA and their Voting Power...... 115 6 Off,cersand DepartmentDirectors of the Bankand IDA ...... 116
107 BankLoans and IDA Creditsby Purposeand Area
CumulativeTotal, June 30, 1971 (Millionsof US dollars,initial commitmentsnet of cancellationsand refundings)
BankLoans by Area Total Asiaand Western Bankand Middle Hemi- Purpose IDA Total Africa East Oceania Europe sphere IFC GRANDTOTAL ...... $19,409.3 $16,068.6 $2,342.4 $4,978.6 $576.3 $2,963.5 $5,007.8 $200.0 ELECTRICPOWER ...... $ 5,284.0 $ 5,010.6 $ 600.4 $1,075.3 $171.4 $ 700.6 $2,462.9 $ TRANSPORTATION...... $ 5,876.9 $ 4,958.3 $ 977.2 $1,842.2 $ 89.3 $ 727.7 $1,322.0 $ Railways ...... 2,240.8 1,887.8 448.5 748.2 57.1 362.4 271.6 Shipping...... 12.0 12.0 - - - 12.0 - Portsand waterways ...... 613.2 568.6 176.9 190.6 6.7 98.4 96.0 Roads...... 2,851.9 2,331.0 294.3 841.6 16.3 247.7 931.1 Airlinesand airports ...... 22.0 22.0 - 5.6 9.2 7.2 - Pipelines...... 137.0 137.0 57.5 56.2 - - 23.3 TELECOMMUNICATIONS...... $ 575.2 $ 348.6 $ 37.1 $ 113.1 $ 7.0 $ 40.3 $ 151.1 $ AGRICULTURE,FORESTRY AND FISHING...... $2,347.7 $ 1,497.4 $ 203.9 $ 565.7 $ - $ 199.5 $ 528.3 $ Farmmechanization ...... 25.8 24.4 5.0 9.0 - 2.0 8.4 Irrigationand flood control ...... 1,101.2 753.8 81.0 424.5 - 137.3 111.0* Landclearance, farm improvement,etc ...... 114.9 80.7 24.2 45.3 - 2.2 9.0 Cropprocessing and storage...... 65.5 28.4 7.1 16.3 - 4.2 .8 Livestockimprovement ...... 352.6 286.3 5.3 4.4 - 25.0 251.6 Forestryand fishing ...... 46.4 41.6 7.9 22.2 - 6.2 5.3 Agriculturalcredit ...... 454.7 211.5 33.4 44.0 - - 134.1 Smallholdersand plantations ...... 148.9 48.1 40.0 - - - 8.1 Agriculturalindustries ...... 25.0 10.0 - - - 10.0 - Agriculturalresearch ...... 12.7 12.7 - - - 12.7 - INDUSTRY...... $ 2,517.3 $ 2,413.2 $ 334.4 $1,185.8 $ - $ 625.7 $ 267.3 $ - Iron and steel...... 370. 370.8 - 315.8 - 25.0 30.0 - Pulpand paper...... __ ...... 133.7 133.7 - 4.2 - 109.5 20.0 - Fertilizerand other chemicals ...... 171.4 141.4 30.0 57.0 - 54.4 - - Otherindustries ...... 273.8 264.4 20.5 5.2 - 203.6 35.1 - Extractive,andmining infrastructure ...... 211.1 211.1 133.0 19.5 - 11.9 46.7 - Developmentfinance companies ...... 1,356.5 1,291.9 150.9 784.1 - 221.4 135.5 -
GENERALDEVELOPMENT AND INDUSTRIALIMPORTS ...... $1,317.7 $ 637.7 $ 120.0 $ 103.8 $308.5 $ 100.0 $ 5.4 $ - EDUCATION...... $ 424.4 $ 212.7 $ 40.3 $ 48.8 $ - $ 39.3 $ 84.3 $ - POPULATION ...... $ 9.8 $ 5.0 $ - $ - $ - $ - $ 5.0$ WATERSUPPLY AND SEWERAGE...... $ 328.7 $ 277.7 $ 28.3 $ 44.0 $ - $ 23.7 $ 181.7 $ TOURISM...... $ 10.0 $ 10.0 - $$ -$ - $ 10.0 $ - $ POST-WARRECONSTRUCTION ...... $ 496.8 $ 496.8 $ - $ - $ - $ 496.8 $ - $ PROJECTPREPARATION AND TECHNICALASSISTANCE ...... $ 21.1 $ .9 $ .9 $ $ - $ - $ - FINANCINGLOAN (IFC) ...... $ 200.0 $ 200.0 $ - $ - $ - $ - $ - $200.0
Note: Multipurposeloans are distributed according to eachpurpose and not assignedto the majorpurpose. Due to rounding,details may not add to totalsor 4otals maynot agreewith thoseshown in Appendix2. IncludesLoan No. 559 Guyana,sea defense project.
108 Appendix 1
IDA Creditsby Area Asiaand Western Middle Hemi- Total Atrica East Oceania Europe sphere $3,340.4 $666.0 $2,374.9 $11.0 $111.8 $176.7 $ 273.4 $ 22.3 $ 187.9 $ - $ 25.7 $ 37.5 $ 918.5 $300.7 $ 536.0 $ 4.5 $ - $ 77.3 353.0 26.6 326.4 - - -
44.6 20.2 24.4 - - - 520.9 253.9 185.2 4.5 - 77.3
$ 226.6 $ .8 $ 225.8 $ - $ - $ - $ 850.2 $158.7 $ 586.7 $ 6.5 $ 51.4 $ 46.9 1.4 - 1.4 - - - 347.4 44.0 271.5 - 31.9 - 34.2 34.2 - - - - 37.1 6.7 30.4 - - - 66.3 7.9 7.0 - 4.5 46.9 4.8 1.3 3.5 - - - 243.2 18.3 224.9 - - - 100.8 46.3 48.0 6.5 - - 15.0 - - - 15.0 -
$ 104.0 $ 5.0 $ 64.3 $- $34.7 $ -
30.0 - 30.0 - - - 9.4 - 9.4 - - -
64.6 5.0 24.9 - 34.7 -
$ 680.0 $ - $ 680.0 $- $ - $ $ 211.7 $150.0 $ 49.7 $ - $ - $12.0 $ 4.8 $ 4.8 $ - $- $ - $ - $ 51.0 $ 18.1 $ 29.9 $ - $ - $ 3.0
$ - $ - $ - $- $_ $ -
$ - $ - $_ $- $ - $_-
$ 20.2 $ 5.6 $ 14.6 $- $ - $ $ - $ - $ - $- $ - $ -
109 BankLoans and IDA Creditsby Country
CumulativeTotal, June30, 1971 Expressedin UnitedStates Currency-Initial commitments net of cancellations,refundings and terminations
Bank Loans IDA Credits Total Country Number Amount Number Amount Number Amount Afghanistan...... - $ - 4 $ 15,277,313 4 $ 15,277,313 Algeria ...... 3 80,500,000 - - 3 80,500,000 Argentina ...... 9 509,102,049 - - 9 509,102,049 Australia ...... 7 417,730,000 - - 7 417,730,000 Austria ...... 9 104,860,083 - - 9 104,86P,083 Belgium ...... 4 76,000,000 - - 4 76,000,000 Bolivia ...... 1 23,250,000 6 32,600,000 7 55,850,000 Botswana ...... 1 32,000,000 3 9,100,000 4 41,100,000 Brazil...... 34 998,291,274 - - 34 998,291,274 Burma...... 3 33,123,943 - - 3 33,123,943 Burundi...... 1 4,800,000 3 3,280,000 4 8,080,000 Cameroon...... 5 37,100,000 5 30,000,000 10 67,100,000 CentralAfrican Republic ...... - - 2 8,500,000 2 8,500,000 Ceylon...... 8 74,128,601 4 19,646,000 12 93,774,601 Chad...... - - 3 8,100,000 3 8,100,000 Chile...... 18 232,537,762 1 18,997,755 19 251,535,517 China...... 14 312,613,133 4 13,073,716 18 325,686,849 Colombia...... 48 871,877,840 1 19,500,000 49 891,377,840 Congo,Democratic Republic of . ... 5 91,582,854 3 18,000,000 8 109,582,854 Congo,People's Republic of ...... 1 30,000,000 3 5,630,000 4 35,630,000 CostaRica ...... 11 84,876,251 1 4,550,243 12 89,426,494 Cyprus...... 6 39,493,510 - - 6 39,493,510 Dahomey ...... - - 2 8,100,000 2 8,100,000 Denmark ...... 3 85,000,000 - - 3 85,000,000 DominicanRepublic ...... 1 25,000,000 2 9,000,000 3 34,000,000 Ecuador ...... 10 71,300,000 4 24,600,000 14 95,900,000 El Salvador...... 9 57,918,024 2 13,599,331 11 71,517,355 Ethiopia ...... 11 97,800,000 6 44,500,000 17 142,300,000 Fiji ...... 1 11,800,000 - - 1 11,800,000 Finland ...... 16 276,526,846 - - 16 276,526,846 France...... 1 250,000,000 - - 1 250,000,000 Gabon ...... 4 54,788,722 - - 4 54,788,722 Gambia,The ...... 1 2,100,000 1 2,100,000 Ghana...... 2 53,000,000 6 31,900,000 8 84,900,000 Greece .. 4 71,300,000 - - 4 71,300,000
Guatemala...... 5 50,500,000 - - 5 50,500,000 Guinea...... 3 73,500,000 - - 3 73,500,000 Guyana...... 4 14,219,017 2 5,100,000 6 19,319,017 Haiti...... 1 2,600,000 1 349,855 2 2,949,855 Honduras...... 10 58,085,959 5 24,027,974 15 82,113,933 Iceland...... 8 30,014,000 - - 8 30,01!1,000 India ...... 339...... 1,051,248,279 34 1,507,040,696 73 2,558,288,975 Indonesia ...... - - 16 227,400,000 16 227,400,000 Iran ...... 19 612,146,457 - - 19 612,146,457 Iraq...... 2 25,293,946 - - 2 25,293,946 Ireland...... 3 44,500,000 - - 3 44,500,000 Israel ... 7 154,412,479 - - 7 154,412,479 Italy ...... 8 398,028,000 - - 8 398,028,000 Ivory Coast( ') ...... 10 75,991,567 - - 10 75,991,567 Jamaica...... 8 59,959,421 - - 8 59,959,421 Japan...... 31 857,041,004 - - 31 857,041,004 Jordan...... - - 5 16,015,502 5 16,015,502 Kenya(2) ...... 12 228,824,026 11 61,300,000 23 290,124,026 Korea ...... 6 194,500,000 6 64,938,129 12 259,438,129 Lebanon ...... 1 27,000,000 - - 1 27,000,000 Lesotho ...... - - 1 4,100,000 1 4,100,000
110 Appendix 2
BankLoans IDACredits Total Country Number Amount Number Amount Number Amount
Libsria...... 4 $ 15,249,812 - $ -4 $ 15,249,812 Luxembourg...... 1 11,761,983 - 1 11,761,983 MalagasyRepublic. .... 3 11,100,000 4 29,100,000 7 40,200,000 Malawi.... 7 40,000,000 7 40,000,000 Malaiysia...... 16 288,678,513 - 16 288,678,513 Mali(')...... 2 16,800,000 2 16,800,000. Matta. , ...... 1 6,040,080 - 1 6,040,080 Mauritania...... 1 66,000,000 2 9,700,000 3 75,700,000 Mauritius. .. . 1. 6,973,119 1 5,200,000 2 12,173,119 Mexico...... 25 1,053,446,438 - ~ - 25 1,053,446,438 Morocco...... 10 186,720,830 2 18,300,000 12 205,020,830 Nepal...... - - 2 4,200,000 2 4,200,000 Netherlands- 10 236,451,985 - 10 236,451,985 NewZealand. .. .. 5 112,058,680 - - 5 112,058,680 Nicaragua...... 15 59,858,828 1 2,994,834 16 62,853,662 Niger...... - 4 13,903,224 4 13,903,224 Nigeria...... 13 338,800,000 2 35,304,820 15 374,104,820 Norway .6 145,000,000 - ~ - 6 145,000,000 Pakistan 31 633,459,647 38 497,190,454 69 1,130,650,101 Panama...... 6 60,047,426 - - 6 60,047,426 Papuaand New Guinea., .. 3 34,700,000 3 11,000,000 6 45,700,000 Paraguay,.. .. 6 21,838,549 4 21,400,000 10 43,238,549 Peru 24 244,102,066 - - 24 244,102,066 Philippines...... 15 238,952,923 - - 15 238,952,923 Portugaf 5 51,500,000 - 5 57,500,000 Rhodesia(3) 3 86,950,000 -. - 3 86,950,000 Rwanda...... - - 1 9,300,000 1 9,300,000 SenegalIJ).... 2 4,000,000 6 24,150,000 8 28,150,000 SierraLeone . . . 3 11,400,000 2 6,500,000 5 17,900,000 Singapore, 10 114,243,457 -. -- 10 114,243,457 Somalia. 4 12,350,000 4 12,350,000 SouthAfrica. 11 241,800,000 - - 11 241,800,000 Spain...... 8 326,861,832 -.. - 8 326,861,832 Sudan...... 6 129,000,000 2 21,500,000 8 150,500,000 Swaziland 2 6,950,000 1 2,800,000 3 9,750,000 Syria, . . - 1 8,500,000 1 8,500,000 Tanzania2)2 3 42,200,000 10 60,700,000 13 102,900,000 Thailand, . . 22 361,698,461 - ~ - 22 361,698,461 logo ...... - 1 3,700,000 1 3,700,000 Trinidadand Tobago ...... 6 49,390,424 - - 6 49,390,424 Tumisia. . . .. 11 102,168,689 6 44,762,598 17 146,931,287 Turkey...... 16 238,679,609 10 111,815,987 26 350,495,596 Uganda(2) 1 8,400,000 7 44,300,000 8 52,700,000 UnitedArab Republic .. 1 56,500,000 1 26,000,000 2 82,500,000 UplOerVoltal)...... - - 2 7,000,000 2 7,000,000 Uruguay...... 9 130,461,803 - - 9 130,461,803 Venezuela...... 10 329,114,641 -- 10 329,114,641 Yemen,People's Democratic Republic of.. - - 1 1,600,000O 1 1,600,000 Yugoslavia...... 19 565,490,547 - -19 565,490,547 ZambiaO)...... 11 168,250,000 - -11 168,250,000 InternationalFinance Corporation. , .. 1 200,000,000 - 1 200,000,000 TOTALS.~~~~ ~~~~~~~783$16,068,465,389 274 $3,340,398,431 1,057 $19,408,863,820
(') OneIean for $7.5 million sobwnagainst IvoryCoast is shared vvithMali, Senegaland UpperVolta. a Sinloans aggregating $162.8 million shuwnagainst Kenya ore shored with Tanzaniaand Uganda. (3) Tbreeloans totaling $J0t.7 million haveboon asoigned in equalsharen to Rhodeniaand Zambia. AdministrativeBudgets Appendix 3 of the Bank and IDA
For the Fiscal Year Ending June30, 1972
Actual Expenses Budget 1971 1972 (Thousands of US dollars)
BY ORGANIZATIONAL UNIT Boardof Governors...... 948 845 ExecutiveDirectors ...... 3,091 3,538 Executiveoffices ...... 1,021 969 Area departments ...... 16,011 17,693 Projectsdepartments ...... 23,955 29,459 CooperativePrograms, FAO, Unesco and WHO ...... 2,476 3,481 DevelopmentFinance Companies Department ...... 1,840 2,294 Economicstaff ...... 5,664 7,556 Controller'sand Treasurer's Departments, Internal Auditor...... 3,980 4,460 AdministrationDepartment ...... 7,687 9,181 Otherdepartments ...... 10,570 12,519 EDI...... 1,921 2,209 Settlementof InvestmentDisputes, ICSID .. 70 84 Grantsfor consultantsto membercountries ... 167 196 Contingencyallowance ...... - 1,350 TOTALS...... 79,401 95,834 Less:Reimbursements ...... -1,158 -1,542 IFC Serviceand Support Fee ...... -1,749 -1,398 TOTALSIBRD/IDA ...... 76,494 92,894
BY EXPENSE CATEGORY Personalservices ...... 49,598 59,518 Operationaltravel ...... 9,425 10,639 Representation...... 350 368 Consultants...... 3,632 5,054 Contractualservices ...... 2,156 2,846 Overheadexpenses: Othertravel ...... 3,539 4,143 Officeoccupancy ...... 5,572 6,378 Communications ...... 1,929 2,057 Otherexpenses ...... 3,200 3,481 Contingency ...... - 1,350 TOTALS...... 79,401 95,834 Less:Reimbursements ...... -1,158 -1,542 IFCService and SupportFee ...... 14 .. _ 9 -1.398 TOTALSIBRD/IDA ...... 76,494 92,894 Of which: IBRD...... 56,394 63,807 IDA...... 20,100 29,087
TheAdministrativeBudgetsforthefiscalyearendingJune30, 1972werepreparedbythePresidentand approved by the Executive Directors in accordancewith the By-Laws of the Bank and IDA. For purposes of comparison the administrative expenses incurred during the fiscal year ended June 30, 1971 are also shown. The Association reimburses the Bank a single Management Fee for administrative expenses incurred on its behalf. The Management Fee, which comprises the Association's Budget for the year, has been established at $29.1 million for the fiscal year ending June 30, 1972. In FY1972general assistancerendered by the Bank to IFC will be paid for by a Service and Support Fee fixedforthe fiscalyear. The Feehas beenestablished at$1.4 millionforthefiscal yearending June30,1972.
112 Governors and Alternates Appendix 4 of the Bank and IDA
June30, 1971
Member Governor Alternate
Afghanistan. . MohammedAman . . Faiz MohammadAhmadzai Algeria . . . I smail Mahroug...... BouasriaBelghoula Argentina...... RicardoEduardo Gruneisen Australia B. M. Snedden. .J. G. Phillips AusWia .... HannesAndrosch . .Walter Neuddrfer Belgium . . BaronSnoy et d'Oppuers .. RobertVandeputte Bolivia ...... FlavioMachicado Saravia ...... Arturo Nunezdel Prado Botswana . . . . Q. K. J. Masire . . . P. M. Landell-Mills Brazil ..... AntonioDelfim Netto .. . ErnaneGalveas Burma U KyawNyein ...... U Chit Maung Burundi JosephHicuburundi ... AthanaseNtukamazina Cameroon. . . CharlesOnana Awana ... E. M. Koulla Canada ...... EdgarJohn Benson . . Paul Gerin-Lajoie CentralAfrican Republic. .. FrancoisPehoua ...... Andre Zanife-Touambona Ceylon ...... N. M. Perera ... C. A. Coorey'2 ' Chad ...... Bruno Bohiadi . Jean Chavanel Chile. . . Alfonso InostrozaCuevas .. HugoFazio Rigazzi China ...... K. T. Li . . . Chao-kueiMa Colombia RodrigoL lorenteMartinez .. JorgeMejia Palacio Congo,Democratic Republic of .. Louis Namwisi .... Pierre Ileka Congo,People's Republic of . . Banza BernardBouiti ...... Jean-EdouardSathoud Costa Rica. . . ClaudioAlpizar V ... ClaudioA. Volio G. Cyprus ...... A. C. Patsalides...... A. C. Afxentiou Dahomey ...... JosephK eke ...... RobertTagnon Denmark ... Erik Ninn-Hansen... tto Moller DominicanRepublic ...... DidgenesH. Fernandez...... Luis M. GuerreroGdmez Ecuador. . . AlonsoSalgado ...... CarlosMantilla-Ortega El Salvador ... Alfredo BenjaminNoyola . EquatorialGuinear') ...... AndresNko Ivasa ...... GabrielAndombe Buanga Ethiopia...... MammoTadesse ...... Wolde MariamGirma Fiji .... W. M. Barrett..... Finland.. C. 0. Tallgren ...... OsmoKalliala France . . . Minister of Finance ... BernardClappier Gabon ...... EdouardAlexis M'Bouy-Boutzit. . Paul Moukombi Gambia,The . . . S. M. Dibba .... D. A. N'Dow Germany...... Karl Schiller Ghana ...... JosephHenry Mensah ...... JonesOfori-Atta Greece . . . EmmanuelFthenakis ... ChristosG. AchisI2' Guatemala...... GustavoMir6n Porras ... .. JorgeLamport Rodil Guinea. . . Laminy Konde...... N'FalySangar6 Guyana. H. D. Hoyte ... F. E. Hope Haiti ... .. Edouard Francisque. . AntonioAndre Honduras...... Rub6nMondrag6n C...... RicardoZ6uiga Augustinus Iceland ...... Gylfi Gislason ...... MagnusJ6nsson Inda . . Y. B. Chavan . . . .. 1. G. Patel Indonesia ... Ali Wardhana ... .DjoeanaKoesoemohardia Iran ..... Jamshid Amouzegar ... JahangirAmuzegar Iraq; ...... Amin Abdul Karim Kalamchi .... Sa'adi Ibrahim Ireland ..... GeorgeColley . . . .. C. H. Murray Israel ..... David Horowitz. . . .. AvrahamAgmon Italy ... Guido Carli ... Paolo Baffi Ivory Coast ..... Henri KonanBedi6 ... AbdoulayeKone Jamaica" ...... EdwardSeaga ...... G. Arthur Brown Japan ...... Mikio MizutaM'' i TadashiSasaki Jordan ...... Omar Nabulsi M. Nuri Shafiq Kenya ...... Mwai Kibaki .. . Philip Ndegwa Khmer Republic ...... Sok Chhong . . . Y em Sarong"' Korea . . . Duck Woo Nam .Sung WhanKim (continued) )1) Memberof the Bankonly. (2) Appointmenteffective after June 30, 1971.
113 Governorsand Alternates Appendix4 of the Bankand IDA (continued)
June 30, 1971
Member Governor Alternate Kuwait ...... Abdul RahmanSalim Al-Ateeqy .... Abdlatif Y. Al-Hamad Laos ...... OudongSouvannavong ...... Sitha Sisombat Lebanon ...... Khalil Salem...... Farid Solh Lesotho ...... P. N. Peete...... T. Thahane Liberia . . . J. Milton Weeks...... Cyril Bright Libya ...... AbdessalamJalloud ...... Nuri A. Baryun Luxembourg ...... Pierre Werner...... Albert Dondelinger MalagasyRepublic ...... Ralison Rakotovao...... RaymondRandriamandranto Malawi . . . Aleke K. Banda...... G.A. Jaffu Malaysia ...... Tan Siew Sin...... RajaTan Sri Moharbin RajaBadiozaman Mali . . . TieouIl Konate...... Sidy Coulibaly Mauritania ...... MamadouToure ...... MamadouCissoko Mauritius ...... RamaswamyPyndiah ...... KadressVencatachellum Mexico ...... HugoB. Margain ...... GuillermoMartinez Dominguez Morocco ...... MohammedKarim Lamrani...... M'HamedBargach Nepal ...... V. P. Lohani2' ...... PuskarNath Pant Netherlands...... R. J. Nelissen(1' ...... J. Schreuder NewZealand"t) ...... N. V. Lough(') ...... S. A. McLeod&2 ) Nicaragua ...... GuillermoSevilla-Sacasa ..... JuanJose Martinez L. Niger ...... Leopold Kaziende..... AbdoulayeDiallo Nigeria 0...... Awolowo ...... A. A. Ayida Norway ...... Per Kleppe . .... ChristianBrinch Pakistan ...... M. M. Ahmad..... A. G. N. Kazi Panama ...... JoseGuillermo Aizpu . .... RigobertoParedes Paraguay ... CesarRomeo Acosta ..... AugustoColman V. Peru ...... FranciscoMorales Bermudez C... . Luis BaruaCastaneda Philippines ...... CesarVirata ..... AlejandroMelchor Portugal' ... . . Jo9o AugustoDias Rosas ..... Luis M. TeixeiraPinto Rwanda ...... Fidele Nzanana..... DeogratiasGashonga Saudi Arabia ... Ahmed Zaki Saad. Senegal ...... OusmaneSeck ...... HametDiop Sierra Leone . . . C. A. Kamara-Taylor...... B. Strasser-King Singapore') . ... Hon Sui Sen...... HoweYoon Chong Somalia . . . Ibrahim MegagSamater ...... OmarAhmed Omar South Africa ...... Nicolaas Diederichs...... TheunisWillem de Jongh Spain ...... Alberto MonrealLuque ...... Luis Coronelde Palma Sudan ...... MohamedAbdel Halim...... Ali AhmedSahloul Swaziland ...... J. R. Masson...... JamesNxumalo Sweden ...... G. E. Strang ...... KristerWickman SyrianArab Republic ...... NourallahNourallah ...... Ammar Jammal Tanzania ...... A. M. Babu...... CleopaD. Msuya Thailand ...... SermVinicchayakul ...... BisudhiNimmanahaeminda Togo ...... JeanTevi ...... BoukariDjobo Trinidad and Tobago1) ...... G. M. Chambers...... D. H. N. Alleyne Tunisia .... MansourMoalla ...... Turkey . . . Sait Naci Ergin ...... KemalCantork Uganda . . . E. B. Wakhweya...... Jino Geria United Arab Republic ... MohamedA. Merzeban...... Sherif Lotfy United Kingdom . . . Sir Leslie O'Brien...... Sir DouglasAllen United States ... . John B. Connally...... NathanielSamuels Upper Volta . . . EdouardYameogo ...... PierreTahita Uruguay" . . . CarlosMario Fleitas...... JuanAlberto Buccino Venezuela") . . . RafaelAlfonzo Ravard ...... CarlosEmmanuelli Llamozas Viet-Nam . . . Le-Quang-Uyen'2' . I...... NguyenVan Dong YemenArab Republic ... Yahya H. Geghman...... AbdullaSanabani Yemen,People's Dem. Rep.of .. MohamedMahfoodh Bahashwan ... JafferJooman Yugoslavia . . . Janko Smole...... DragutinKosovac Zambia . . . John MupangaMwanakatwe ...... E. G. Kasonde
(1)Member of the Bank only. (2) Appointment effective after June 30, 1971.
114 ExecutiveDirectors and Alternates of the Appendix 5 Bank and IDA and Their Voting Power
June30, 1971
TotalVotes ExecutiveDirector Alternate CastingVotes of Bank IDA
Appointed RobertE. Wieczorowski ...... UnitedStates ...... 63,750 64,558 D. J. Mitchell...... M. P. J. Lynch()...... UnitedKingdom .26,250 26,728 Fritz_Stedtfeld...... WolfgangH. Artopoeus...... Germany 13,903 11,092 Marc Vienot...... JeanP. Carriere...... France...... 10,750 11,092 SeitaroHattori ...... MasanariSumi ...... Japan...... 10,480 7,218 S. R. Sen ...... M. R. Shroff...... India...... 9,250 8,570 Elected S. OsmanAli ...... MohammedYeganeh ...... Iran, Iraq,Jordan, Kuwait, Lebanon, Pakistan, (Pakistan) (Iran) SaudiArabia, Syrian Arab Republic,United Arab Republic,Yemen Arab Republic,Yemen (People'sDemocratic Republic of). 10,880 11,668 0 GiorgioRota ...... JuanMoro ...... Italy, Portugal(), Spain . . . 10,877 6,650 (Italy) (Spain) ClaudeM. Isbister ...... MauriceHorgan ...... Canada,Guyana, Ireland, Jamaica(3). 10,333 9,834 (Canada) (I reland) R. LindsayKnight ...... M. A. Cranswick...... Australia,New Zealand(3), South Africa.9,880 7,054 (NewZealand) (Australia) Andrevan Campenhout...... Viktor C. Wolf...... Austria,Belgium, Luxembourg, Turkey ..... 9,762 5,893 (Belgium) (Austria) DonatienBihute ...... BulchaDemeksa ...... Botswana,Burundi, Equatorial Guinea(3), (Burundi) (Ethiopia) Ethiopia,The Gambia,Guinea, Kenya, Lesotho, Liberia,Malawi, Nigeria, Sierra Leone, Sudan, Swaziland,Tanzania, Trinidad and Tobago(3), Uganda,Zambia .9,388 11,511 ReignsonC. Chen ...... ByongHyun Shin ...... China,Korea, Viet-Nam .9,210 8,106 (China) (Korea) Alfred RinnooyKan ...... Vladimir Ceric...... Cyprus,Israel, Netherlands, Yugoslavia . . 9,162 8,844 (Netherlands) (Yugoslavia) Erik Tornqvist ...... Carl 1. Ohman...... Denmark,Finland, Iceland, Norway, Sweden 8,944 8,396 (Finland) (Sweden) AbderrahmanTazi ...... MohammedYounos Rafik ...... Afghanistan,Algeria, Ghana, Greece, Indonesia, (Morocco) (Afghanistan) KhmerRepublic, Libya, Morocco,Tunisia .8,687 10,118 MohamedNassim Kochman ...... BenoitBoukar ...... Cameroon,Central African Republic, Chad, (Mauritania) (Chad) Congo(Democratic Republic of), Congo(People's Republicof), Dahomey,Gabon, Ivory Coast, MalagasyRepublic, Mali, Mauritania,Mauritius, Niger,Rwanda, Senegal, Somalia, Togo, UpperVolta ...... 8,004 12,148 Adrian Lajous...... CarlosAlzamora(2) ...... CostaRica, El Salvador,Guatemala, Haiti, (Mexico) (Peru) Honduras,Mexico, Nicaragua, Panama, Peru,Venezuela(3). 7,889 7,058 Virgilio Barco ...... PlacidoL. Mapa,Jr ...... Brazil, Colombia,Dominican Republic, (Colombia) (Philippines) Ecuador,Philippines ...... __ ...... 7,403 8,190 Luis B. Mey . . OscarVega-Lopez ...... Argentina,Bolivia, Chile, Paraguay, (Aigentina) (Bolivia) Uruguay(3)...... 6,597 6,744 KhunyingSuparb Yossundara ..... R. V. Navaratnam...... Burma,Ceylon, Laos, Malaysia, Nepal, (Thailand) (Malaysia) Singapore(3',Thailand ...... 5,950 5,320 In additionto the ExecutiveDirectors and Alternatesshown in the foregoinglist, the followingalso served as ExecutiveDirector or Alternateatter October 31, 1970: Director Endof periodof service: Alternate Endof periodof service: A. W. Young..... December7,1970 ...... OscarAlviar-Ramirez...... November8,1970 (New Zealand) (Colombia) PieterLieftinck ...... March31, 1971...... GeorgePooley ...... December2,1970 (Netherlands) (Australia) A. RoyMacMillan ...... December31, 1970 (Canada) Jorg Jaeckel...... February28, 1971 (Germany) AbdolAli Jahanshahi ... April 21,1971 (I ran) Note:Fiji (361votes in the Bank)is not formallyrepresented by an ExecutiveDirector. (') To be succeededby K. M. Critchleyeffective August 19, 191. (2) To be succeededby CarlosSantistevan (Peru) effective August 1,1971. (3) Member of the Bank only. 115 Officers and Department Directors Appendix 6 of the Bank and IDA
June 30, 1971
President...... Robe..... S.M rtcN amara Vice Presidentand Chairman,Loan Committee ...... J. Burke Knapp Vice President-Financeand Director,Projects ...... S. Aldewereld GeneralCounsel .. A. Broches The EconomicAdviser to the President...... Hollis B. Chenery Director,Development Services Department ...... RichardH. Demuth VicePresident ...... Sir DenisRickett VicePresident ...... MohamedShoaib Treasurer...... EugeneH. Rotberg Controller...... K. GeorgGabriel Secretary...... M. M. Mendels
Director,Programming and BudgetingDepartment ...... John H. Adler Director,South America Department ...... GeraldAlter Director,Education Projects Department ...... DuncanS. Ballantine AssociateDirector, Projects ...... WarrenC. Baum Director,Resident Staff in Indonesia...... BernardR. Bell Director,Europe, Middle East and NorthAfrica Department...... Munir P. Benjenk Director,South Asia Department.. . .. P. M. Cargill DeputyDirector, Projects ...... BernardChadenet Director,Western Africa Department ...... RogerChaufournier Director,Information and PublicAffairs ...... WilliamClark DeputyChairman, Loan Committee.. S. R. Cope Director,Development Finance Companies Department ...... WilliamDiamond SpecialAdviser ...... Abdel G. El Emary SpecialRepresentative for Inter-AmericanOrganizations .... Luis Escobar Director,Agriculture Projects Department ...... L. J. C. Evans SpecialRepresentative for UnitedNations Organizations ...... ErnestoFranco-Holguin Director,Industrial Projects Department . . . . Hans Fuchs Director,East Asia and PacificDepartment ...... R. J. Goodman AssociateDirector, Development Services Department . HaroldN. Graves Director,Central America and CaribbeanDepartment ...... EdgarGutierrez Director,Economic Program Department ...... JohnPhilip Hayes Director,Economics Department ...... P. D. Henderson AssociateDirector, Development Services Department ...... MichaelL. Hoffman Director,Population Projects Department ...... K. Kanagaratnam Director,European Office ...... Arthur Karasz Director,Transportation Projects Department ...... A. DavidKnox Director,Tourism Projects Department ...... Alfred Koch Director,Economic Development Institute ...... K. S. Krishnaswamy Director,Eastern Africa Department ...... MichaelL. Lejeune Director,Department of ComputingActivities ...... Mervin E. Muller AssociateGeneral Counsel ...... Lester Nurick Directorof Administration...... HughB. Ripman Director,Special Projects Department ...... RobertSadove Director,Tokyo Office ...... Aritoshi Soejima Director,Public Utilities ProjectsDepartment ...... MervynWeiner
116
WORLDBAN INTERNATIONALDEVELOPMENT AS$OCIATION
Headquarters/ 1818 H Street,N.W., Washington, D.C. 20433, U.S.A. Telephone: EXecutive 3-6360 EuropeanOffice / 66Ave. d'l6na, Paris 16e, France.Telephone: 720-2510 TokyoOffice / KokusaiBuilding, 1-1, Marunouchi 3-Chome, Chiyoda-ku, Tokyo 100,Japan. Telephone, (03) 214-501 CableAddresses / Wor Bank:INTBAFRAD, International Development Association: INDEVAS