Shadow Exchange Rates for Project Economic Analysis: Toward Improving Practice at the Asian Development Bank

ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

ERD Technical Note No. 11

Anneli Lagman- Martin

February 2004

Anneli Lagman-Martin is a former economics officer with the Economic Analysis and Operations Support Division, Asian Development Bank. The author thanks colleagues who provided helpful comments and suggestions on this paper: David Dole, Manabu Fujimura, Valerie Reppelin-Hill, and Bahodir Ganiev.

35 Asian Development Bank P.O. Box 789 0980 Manila Philippines

2004 by Asian Development Bank February 2004 ISSN 1655-5236

The views expressed in this paper are those of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank. Foreword

The ERD Technical Note Series deals with conceptual, analytical or methodological issues relating to project/program economic analysis or statistical analysis. Pa- pers in the Series are meant to enhance analytical rigor and quality in project/program preparation and economic evaluation, and improve statistical data and development indicators. ERD Technical Notes are prepared mainly, but not exclusively, by staff of the Economics and Research Department, their consultants, or resource persons primarily for internal use, but may be made available to interested external parties. Acronyms and Abbreviations

ADB Asian Development Bank CSP country strategy and program DFID Department for International Development (United Kingdom) DMC developing member country EER equilibrium exchange rate EREA Economic Analysis and Operations Support Division GFS Government Finance Statistics IFS International Finance Statistics IMF International Monetary Fund OER official exchange rate PPTA project preparatory technical assistance PRC People’s Republic of China RRP Report and Recommendation of the President SCF standard conversion factor SER shadow exchange rate SERF shadow exchange rate factor Table of Contents

Abstract ix

I. INTRODUCTION 1

II. SUGGESTED METHODOLOGIES BASED ON ADB GUIDELINES 2

III. ADB PRACTICE IN ESTIMATING AND USING SERFS OF SCFS 3

IV. APPLICATION OF SIMPLE TRADE-WEIGHTED METHODOLOGY AND RESULTS 4

A. The Approach 4 B. Findings 5 C. Suggestions for Future Work on SCF or SERF Estimation 6

V. CONCLUSIONS AND RECOMMENDATIONS 7

APPENDIX 1: CONVERSION FACTORS FOR SELECTED PROJECTS, 1996-2003 8

APPENDIX 2: SAMPLE CALCULATION OF SCF: AZERBAIJAN 32

REFERENCES 33 Abstract

This note examines the Asian Development Bank’s (ADB) practice in estimating and using shadow exchange rate in the economic analysis of projects. Recognizing the limited application of the method suggested in ADB’s Guidelines for the Economic Analysis of Projects, this note suggests a simple trade-weighted approach that corrects for at least the minimum level of distortions in the economic price of foreign exchange. This paper also echoes the recommendation of ADB’s Economic Analysis in 2002: A Retrospective for the periodic reassessment of the shadow exchange rate as part of country strategy and program formulation. ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

sF sxyh gsyx

Economic analysis of a project differs from financial analysis in that economic analysis is based on opportunity cost, rather than actual, financial outlays. For example, an irrigation system may have to pay for power to pump water, but typically would not pay for the water itself. The system would then face a financial outlay for power, but none for water. Both power and water have an economic cost though: the value of power and water in the next best use, or the opportunity cost. Since the economic value represents the true, and perhaps otherwise hidden, value of a good or service, economists call it the “shadow” price. (See Curry and Weiss 2000, or ADB 1997, for a full description of project analysis.) An exchange rate, which is the price of foreign currency, also has a shadow price: the shadow exchange rate. The shadow exchange rate is important in project analysis, because a simple way to mea- sure the economic value of goods and services is to classify them into “tradables” and “nontradables.” For any project, a tradable good or service has a price established in international markets, regardless of whether the good or service is actually traded. If it is at least potentially traded, then it is relatively easy to estimate transport and other transaction costs involved in actually trading the good or service. And from the perspective of a specific country, the international market price can be taken as the true economic value of the tradable good or service, since taxes, subsidies, and other market distortions are resource costs for other countries. For example, suppose the United States (US) government subsidizes American wheat farmers, who sell their output in international markets. The economic value of wheat to the US is the international price plus the cost of subsidies, but the economic value of wheat to any other country is only the international price. The wheat subsidies are an economic cost only to the US economy. From this perspective, then, measuring the economic value of any tradable good or service is relatively easy: use the international price, plus transport and transaction costs, to calculate a value in terms of a foreign currency; and then convert the foreign currency into the domestic currency using the economic or “shadow” exchange rate. All tradable goods and services therefore require only one shadow price, the shadow exchange rate (SER). There are several ways to estimate shadow exchange rates, differing in both their accuracy and conceptual and computational complexity. Section II below provides a brief review. These methods are generally based on converting the nominal or official exchange rate (OER) to the shadow exchange rate, through a conversion factor (the “shadow exchange rate factor”, or SERF): SER = OER * SERF. Although more complex methods of estimating the SERF are generally more accurate, the additional accuracy may not justify the extra effort when foreign exchange markets are not highly distorted. A simple method may be sufficient, although simpler methods should be compared at least occasionally with the results of more complex methods. Despite the opportunity or potential for using simpler methods, there appears to be a percep- tion that estimating the SERF is difficult and beyond the means of ordinary project analysis. Section III below reviews the practice in recent project analyses at the Asian Development Bank (ADB). The review found that the calculation or documentation of the SERF was inadequate in up to 90 percent of recent projects. Although calculating the SERF is relatively easy, as described in Section II, very few project analyses at ADB make the effort, even in documenting the source of their estimates.

1 February 2004 Anneli Lagman-Martin

The economic analysis of projects at ADB would be strengthened significantly through consistent and correct application of the standard methods of project analysis, including the SERF (ADB 2003). Section IV below uses one of the simplest methods to estimate the SERF for several countries in the Asian and Pacific region. The analysis shows that the method is easy to apply, and the required data are generally easy to obtain. Since the SERF is a country parameter, though, and not specific to any project, economists responsible for countrywide economic analysis should take the lead in estimating SERFs, leaving projects analysts responsible only for getting the latest estimates, and applying them correctly and consistently. The SERF is also important in country economic assessment, as a means of evaluating distortions in foreign exchange markets.

ssF qqiih2wiryhyvyqsi2feih2yx2ehf2q shivsxi

The SERF is the ratio of the SER to the OER. The SER is the weighted average of the demand price for foreign exchange paid by importers and the supply price of foreign exchange received by exporters. Taxes and subsidies cause the SER to diverge from the OER. ADB’s Guidelines for the Economic Analysis of Projects (1997) or Guidelines suggests three alternative approaches for estimating the SCF or the SERF. One approach is applicable when the country concerned enjoys balanced trade. The formula involves calculation of the SER based on the tariff-adjusted OER, weighted according to import-export shares. Another approach takes into account the sustainability of the country’s trade imbalance through an assessment of the equilibrium exchange rate (EER). The use of the EER, rather than the market or official exchange rate, puts emphasis on the long-term stability of the exchange rate because of its significant effect on project performance. Appendix 16 of the Guidelines illustrates the application of these approaches to the Philippine case. This methodology is based on the model developed by Jenkins and El-Hifnawi (1993). The Guidelines also suggest that, when tariffs represent the only distortion to trade and there are no distortions in factor or commodity prices, the SERF can be approximated by one plus the weighted average tariff rate. This is consistent with the accepted definition of the SER as the weighted average of the demand price for foreign exchange paid by importers and the supply price of foreign exchange received by exporters.1 This third approach is equivalent to the methodology suggested by the United Kingdom’s Depart- ment for International Development (DFID), formerly known as Overseas Development Administration (ODA 1988).This simple trade-weighted formula can be represented as: sssF ehf2egsgi2sx2iswesxq2exh2 sxq2ip2yp2gp

Imports (cif) + Exports (fob) SCF = (Imports + Import taxes) + (Exports – Export taxes) Total trade = Total trade + Net trade taxes where cif = cost, insurance & freight fob = free on board Alternatively: SERF = 1 + Net trade taxes Total trade

1This is considered one application of Arnold Harberger’s weighted average method in partial equilibrium framework.

2 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

In its retrospective review of operations with respect to project economic analysis in 2002 (ADB 2003), the Economic Analysis and Operations Support Division (EREA) identified various areas for improvement at different stages of the project cycle—identification, formulation, design, and appraisal. On the estimation and use of standard conversion factors, it was common practice to use the value of the SCF, or the SERF, that was used in the most recent project in the sector or in the country. The review further noted that while this promotes consistency across projects, the SCF or SERF used may not reflect prevailing economic conditions. It would not be surprising to discover that the original value of the SCF or SERF may have been estimated several years back, given the practice of referring to recent projects and accepting the value as that commonly used. To verify this general observation and to glean useful insights from past practice, EREA conducted a survey of 232 loan proposals (using the Report and Recommendation of the President or RRP) approved from 1996 up to August 2003 (See Appendix 1).2 A summary of practice is presented in Table 1 below. Almost 16 percent of the RRPs specifically cited the use of SCFs or SERFs from previous projects. This figure is not considered very significant, but note that 69 percent of the RRPs did not cite the source of the SCF/SERF at all. It is likely that most of these reports followed the same practice of using values from recent projects. Although referring to previous projects is common, it has occurred that projects in the same country approved within months or days of each other use different values of SERF or SCF. This implies

Table 1: ADB Practice in Estimating SCFs, 1996 to 2003

PRACTICE NO. OF RRPS SHARE (PERCENT)

1 Source not cited 160 69.0 2 Used in recent projects 36 15.5 3 Calculated/updated, of which 17 7.3 ● using Jenkins’ model/Guidelines Appendix 16 4 1.7 ● by consultants 20.9 ● using trade data (data from CER or central banks) 7 3.0 ● based on COSTAB 1 0.4 ● others/not specified 3 1.3 4 Based on government-estimated parameters, other studies (inc. 5 2.2 5 Calculated based on the relationship between official exchange 4 1.7 rate and shadow exchange rate (or commercial rate) 6 Others 10 4.3 ● Cited no significant distortions, so SCF=1 or close to 1 4 1.7 ● Cited that there is no need for SCF because project costs are mainly 1 0.4 imports, so SCF=1 ● SCF not available, so SCF=1 1 0.4 ● Expert judgment 2 0.9 ● Unclear (Econ costs estimated by first identifying ratios of market 2 0.9 price to economic costs, and then by multiplying the ratio by the market price for each vehicle category separately); (SCF was assumed based on international competitive bidding for some contracts) Tot al 232 100

Source: RRPs (as of August 2003).

2The survey focused only on the values of SCFs or SERFs used, not on their application. The observed inconsistent application of the SCF or SERF with respect to the price numeraire is a separate issue.

3 February 2004 Anneli Lagman-Martin

lack of coordination on countrywide parameters during project preparation. This can be prevented if project teams can refer to a set of regularly updated countrywide parameters. In contrast to usual practice, the SERF or SCF was calculated or updated in 17 RRPs sur- veyed. Only four of these referred to the model developed by Jenkins and El-Hifnawi (1993). Although this study provided illustrations for Bangladesh, Indonesia, and Philippines, it was referred to only in three Philippine projects (two in 1996 and one in 2000) and one in Bangladesh (in 1997). Even with the illustrations and the estimates of elasticity provided, very few attempts have been made to update the SCFs or SERFs even for these countries. This may indicate that the illustrations were difficult to follow, or there is a misconception that data are not available, or it is simply convenient for the analyst, given limited resources, to refer to recent projects. Seven RRPs referred to the use of trade data from the Country Economic Review or the central bank of a developing member country (DMC) to calculate the SCF or SERF. Consultants’ reports under project preparatory technical assistance (PPTA) of two RRPs (one each in Pakistan and Sri Lanka) used a simple formula based on weighted average of imports and exports, as in DFID’s approach. The PPTA for Pakistan’s Irrigation Management (which later became Loan 1679-PAK: Punjab Farmer Managed Irrigation) even included data on sales taxes on imports and subsidies on imports. The PPTA of one RRP (Cambodia), however, calculated the SCF based only on average import tariffs—also presented in the DFID Guidelines as an alternative formula. Five RRPs referred to government-estimated parameters or other studies, including two PP- TAs. Two RRPs noted that the SCF or SERF was calculated by consultants, although the PPTAs provided no details on the formula/model used. Still a few others (six RRPs) cited that the SCF is equal or close to one because there are no significant distortions, or project costs are mainly imports, or because an estimate of SCF is not available. The first reason sounds acceptable, particularly if there indeed has been an assessment resulting to the conclusion that there are no significant distortions in the economy. However, citing that project costs are mainly imports is not justifiable, even assuming that the world price numeraire is used, in which case benefits (normally in domestic price levels) still need to be converted to their world price equivalent. Not using SCF because it is not available is not acceptable, particularly when alternative methods of SCF calculation are available. Finally, there were two RRPs where the SCF derivation was suspect or unclear.

sF evsgesyx2yp2swvi2ehiEisqrih wiryhyvyq2exh2i v eF he2epproh

Recognizing the limited application of the SCF methodology illustrated in the Guidelines, it is worth considering practitioner-friendly approaches for calculating SCFs that corrects for at least the minimum level of distortions in the economic price of foreign exchange. Following the lead provided in the Guidelines on the use of the alternative approach when the major distortions to factor and commodity prices are trade-related, the SCF may be approximated using the short-cut and simple trade-weighted formula. To illustrate the application of this approach, SCFs were calculated for as many DMCs as possible using data from readily available sources. The International Financial Statistics (IFS) in CD- ROM format contains data on import and export values while the Government Finance Statistics Year- book (GFS) contains data on import and export taxes. Both data sources are published regularly by the International Monetary Fund (IMF).

4 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

Only 17 DMCs had both sets of data from the IFS and GFS. Annual SCFs were calculated from 1996 to 2002, where data are available, as well as average SCF for each DMC. fF pindings

Table 2 reveals that the annual SCF estimates per DMC are fairly stable, except for Myanmar and Vanuatu. The table also indicates the possibility of using a time series of SCFs as a simple tracking mechanism for progress (or otherwise) of reforms toward removing price distortions. Not only would better practice in the estimation of SCFs improve analytical rigor in project economic analysis and project design, it would also provide a useful indicator of overall country performance with respect to policy reform. Table 2: Estimated SCFs using Simple Trade-weighted Formula

RRPs, 1996-2003 1996 1997 1998 1999 2000 2001 2002 AVER- RANGE AVER- RANGE AGE AGE Transition Economies Azerbaijan .98 .98 .96 .97 .97 .96-.98 Mongolia .98 .99 1.00 .99 .99 .98-1.00 .95 .88-1.00 Viet Nam .93 .94 .94 .95 .96 .95 .95 .93-.96 .89 .80-.96 Pacific Island Economies Fiji .95 .95 .95 .99 .99 Maldives .90 .90 .90 .90 .89 .89 .89 .90 .89-.90 .90 .90 Papua New Guinea .97 .96 .92 .92 .94 .92-.97 .92 .90-.96 Vanuatu .82 .87 .82 .85 .84 .82-.87 Other DMCs Bhutan 1.00 1.00 1.00 1.00 1.00 1.00 .90 .90 People’s Republic of China .99 .99 .99 .99 .99 .92 .71-.93 India .86 .87 .87 .86 .87 .86 .86 .86-.87 .87 .80-.90 Indonesia .99 .99 1.01 .98 .96 .99 .96-1.01 .91 .80-.95 Myanmar .61 .67 .80 .79 .81 .74 .61-.81 Nepal .94 .94 .92 .93 .93 .92 .91 .93 .91-.94 .90 .88-.92 Pakistan .90 .89 .90 .91 .92 .91 .94 .91 .89-.94 .89 .84-.90 Philippines .93 .95 .95 .95 .95 .95 .95 .93-.95 .86 .82-.91 Sri Lanka .95 .96 .95 .95 .97 .96 .96 .95-.97 .88 .79-.94 Thailand .96 .97 .97 .98 .98 .97 .97 .96-.98 .91 .90-.92

Sources: Government Finance Statistics Yearbook (IMF 2002), International Financial Statistics (IMF 2003). For comparison purposes, Table 2 also presents the SCFs (or the reciprocal of SERFs) used in RRPs approved from 1996 to August 2003. The estimated SCFs are generally within the range of SCFs used in the RRPs. The major exceptions are Bhutan, PRC, Indonesia, Philippines, and Thailand. The difference may be explained by the presence of other distortions that were not captured by the simple trade-weighted approach, or simply because of the use of other approaches. In the case of Bhutan, the most recent RRP noted that the SCF was based on the average level of direct taxation and the level of market distortion present in the economy, and cited the SCF used in a recent World Bank project. It is not clear whether the direct taxation pertains to trade taxes or domestic taxes. For PRC, most of the RRPs indicated using SCFs from recent projects, though a few cited calculations done during PPTA. In the case of the Philippines, the SCF was calculated using the model developed by Jenkins and El-Hifnawi, which accounted for the real exchange rate and sustainability of the trade imbalance. Also included in the calculation is the equivalent tariff of quantitative import restrictions.

5 February 2004 Anneli Lagman-Martin

In terms of averages, however, only Indonesia and Maldives have practically identical average SCFs (see Figure 1). For all other countries, except Fiji, the average SCFs, estimated using the simple trade-weighted formula, are higher than the average SCFs used in RRPs. This provides a rough indication of the possibility that the extent of economic distortions may have been overestimated for most countries, and therefore indicating the need for a more rigorous assessment.

Figure 1: Average SCFs, 1996 – 2002

1.00 .98 FIJ .96 MON s) .94 PNG RRP .92 PRC MLD in .90 NEP INO THA BHU PAK VIE

(used .88 SRI .86 IND SCF (used in RRP PHI .84 .82 .80 .80 .82 .84 .86 .88 .90 .92 .94 .96 .98 1.00 SCF (trade-weighted estimate) gF uggestions2for2puture2ork2on2gp2or2ip2istimtion

The IFS and the GFS are not the only sources of data on trade values and trade taxes. More updated data would be available directly from DMC institutions (central banks, ministry or department of finance and/or customs). Given the incomplete (and sometimes outdated) set of data for some DMCs from the IFS and GFS, country economists would be in a good position to verify the calculated SCFs in this report, based on country data to which they may have ready access. A recent application of this approach was undertaken by the country economist for Azerbaijan, who noted that the calculation did not require much effort. Data were sourced from the State Statistics Committee, National Bank of Azerbaijan, and Ministry of Finance. Staff estimates were used in allocating aggregate data on customs charges and other taxes on international trade between imports and exports. Appendix 2 presents the sample calculation. It is worth noting that for some projects currently under preparation, SCFs have been estimated using the weighted average tariff rates from imports and customs revenue data. Examples include the draft RRPs for FIJ: Suva-Nausori Water & Sewerage Project, SAM: Drainage Project, and AZE: Flood Mitigation Project. More efficient use of resources would however be achieved if SCFs or SERFs are estimated as part of country strategy and program (CSP) formulation, and not on a per project basis. Country economists are encouraged to update the SCF or SERF at least annually, in conjunction with the CSP exercise, with appropriate support from EREA when necessary. As part of the task of assessing a DMC’s macroeconomic environment (or in tracking the progress of policy reform), the formula should not be used mechanically, but to aid in analysis. The country economist, with an intimate knowledge of the DMC, can make further adjustments with respect

6 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

to other factors that can affect the true cost of foreign exchange. Such adjustments should however be properly explained, and the logic clarified. Depending on the trade regime in each DMC, for example, if the DMC imposes quantitative restrictions on certain items that are considered significant, their tariff equivalent should be accounted for. The tariff equivalent should be included in the denominator of the formula, and have the same sign as import taxes and export taxes. Where subsidies for certain items are significant and data are available, the formula may be extended to: In summary, the sample SCF estimates in Table 2 are not recommended for direct application. The exercise is meant only to illustrate the ease in estimating SCFs, and this paper should not be cited as a source for SCF estimates for any country. Instead, estimates should come from analyses specific to a country, and should be based on the most recent data. Given access to more updated data at the country level, the calculated SCFs can be verified and adjusted further to take account of other significant distortions other than trade taxes and specific country circumstances. The exercise is also expected to enhance understanding of economic distortions and their impact on project design, performance, and sustainability.

Imports (cif) + Exports (fob) SCF = (Imports + Import taxes – Subsidies) + (Exports – Export taxes + Subsidies)

F gyxgv syx2 exh2 igywwixhesyx

EREA recommends periodic reassessment of the SCF or SERF. This echoes the finding in EREA’s 2002 retrospective report on the importance of understanding the underlying tariff and macroeconomic environment in project economic analysis. This is particularly relevant for transition economies or where various factors are likely to affect the relationship between domestic and world price levels. Tracking the SCF trend can also shed light on the progress of price-related structural adjustment efforts and the need for further reforms, especially as regards trade and subsidy policy. To improve practice in ADB, the calculation or validation of the SCF or SERF during preparation of the CSP and its updates is recommended. The simple trade-weighted formula for SCF calculation is a good starting point, and adjusted as deemed necessary to take account of other distortions, where data are available. Guidance on the appropriate SCF or SERF to use will ensure consistency in SCF or SERF values across projects during a processing year. The resource implications are almost negligible since the minimum information/data required should already form part of the data set used in CSP formulation.

7 February 2004 Anneli Lagman-Martin

eixhs2I gyxisyx2pegy2py2ivigih2ytigD2IWWTEPHHQ

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF

AFG-1997 SCF=0.9 Not cited in RRP, but later information Emergency Infrastructure indicated that based on the best estimate Rehabilitation and of customs revenue and imports in 2002, Reconstruction trade-weighted formula could put SCF at 3 Jun 03 roughly 0.9.

BAN-1952 SCF=0.8 SCF used for the Bangladesh road Rural Infrastructure transport sector Improvement 2 Dec 02

BAN-1947 SERF=1.05 Skilled L=0.87 Not cited Urban Governance and Unskilled L=0.67 Infrastructure Improvement (Sector), 28 Nov 02

BAN-1941 SCF=0.9 Agriculture L=0.85 Not cited Jamuna-Meghna River Construction L=0.84 Erosion Mitigation 25 Nov 02

BAN-1920 SCF=0.8 Not cited Road Network Improvement and Maintenance I 10 Oct 02

BAN-1884 SCF=0.855 Unskilled L=0.8 Not cited West Zone Power System Skilled L=1.1 Development 17 Dec 01

BAN-1831 SCF=0.9 SWRF=0.85 Aug 2000. BAN. Draft Development Second Small-scale Water Strategy. Vol. 8 Annex J: Economics, Resources Development National Water Management Plan Sector, 12 Jul 01 Project. Min of Water Resources

BAN-1789 SCF=0.8 Not cited Road Maintenance and Improvement 29 Nov 00

BAN-1782 SCF=0.89 SWRF=0.8 Not cited Northwest Crop Diversification 21 Nov 00

8 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF

BAN-1771 SERF=1.1 Agriculture and A trade-weighted shadow exchange rate Chittagong Hill Tracts road construction of Tk56=$1 has been assumed, giving Rural Development L=0.8 a SERF of 1.1 26 Oct 00 Other L=1

BAN-1730 SCF=0.855 SWRF=0.9 Not cited Dhaka Power System Upgrade 21 Dec 99

BAN-1708 SCF=0.8 SCF as conventionally used in Bangladesh Southwest Road Network Development 16 Nov 99

BAN-1643 SCF=0.86 Not cited Sundarbans Biodiversity Conservation 27 Nov 98

BAN-1634 SCF=0.9 Rural labor, land and SCF as applied in other ADB projects Rural Livelihood fixed assets=0.75 in Bangladesh 29 Sep 98

BAN-1581 SCF=0.84 Skilled L=0.84 SCF was derived. Shadow price factors Third Rural Infrastructure Unskilled L=0.7 were calculated for major Project-related Development (Various specific materials and components. A shadow 20 Nov 97 CFs provided) price factor was also derived for agriculture.

TA Consultant’s Report: Shadow prices calculated based on ADB Guidelines. Supplementary Appendix 4.2, which supposedly shows calculations, is not available.

BAN-1561 SCF=0.834 SWRF=0.75 Not cited Jamuna Bridge Railway Link 2 Oct 97

BAN-1524 SERF=1.7 Agricultural L=0.8 Following the methodology of Jenkins Participatory Livestock and El-Hifnawi, recent data were Development obtained from the 1996 CER to update the earlier estimate.

BAN-1505 SCF=0.855 SWRF=0.9 Not cited Ninth Power, 18 Dec 96

BAN-1486 SCF=0.75 SWRF=0.8 Not cited Forestry Sector 21 Nov 96

9 February 2004 Anneli Lagman-Martin

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF BAN-1478 Economic costs are equal to the Jamuna Bridge Access financial costs less 17% for taxes and Roads customs duties 5 Nov 96

BHU-1763 SCF=0.9 SCF based on the average level of direct Road Improvement taxation and the level of market 3 Oct 00 distortion present in the economy. Evidence from recent studies, most notably the WB’s Rural Access Project, estimates a SCF of 0.9

BHU-1712 SCF=0.9 Skilled L=1 Not cited Sustainable Rural Unskilled L=0.73 Electrification (or SWRF=0.955) 25 Nov 99

BHU-1625 SERF=1.11 Not cited Urban Infrastructure Improvement 30 Jul 98

CAM-1945 SCF=0.85 Not cited GMS Cambodia Road Improvement 26 Nov 02

CAM-1862 SCF=0.9 Farm and Unskilled Current ADB SCF for Cambodia Northwestern Rural Labor=0.75 Development 27 Nov 01

CAM-1794 SCF=0.9 Not cited Provincial Power Supply 5 Dec 00

CAM-1753 SCF=0.9 SCF in accordance with current practice Stung-Chinit Irrigation for projects in Cambodia and Rural Infrastructure 5 Sep 00

CAM-1741 SCF=0.9 Entrepreneurial SCF as used by ADB in recent studies Rural Credit and Savings family L=0.95 in Cambodia 27 Apr 00 General workers=0.75

CAM-1725 SCF=0.8 SCF as currently estimated in Cambodia Provincial Towns Improvement 20 Dec 99

10 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF CAM-1697 SCF=0.86 Not cited Primary Roads Restoration 21 Sep 99

CAM-1503 SCF=0.86 SCF was estimated from historical Siem Reap Airport data available on the level of import 12 Dec 96 and export as well as duties and taxes collected by the Government. TA 2197-CAM: SCF formula based on trade-weighted average imports and exports

CAM-1468 SCF=0.9 SCF as for other scheduled project Phnom Penh Water Supply funded by the World Bank, France, and Drainage, 26 Sep 96 and Japan.

COO-1832 SCF=1 SWRF=0.8 No significant nationwide distortions Waste Management, apart from import duties and taxes 17 Jul 01

FIJ-1902 SCF=0.986 Labor=0.86 Calculated for Fiji islands Fiji Ports Development 5 Mar 02

FSM-1459 SCF=1 SWRF=0.9 Since the country uses the US$ as its Water Supply and Sanitation (Chuuk, Kosrae, domestic currency and no significant 19 Sep 96 Pohnpei) price distortions exist in the market for SWRF=0.9 (Yap) tradable inputs, the SCF is assumed to be 1.

IND-1981 SCF=0.85 Not cited Railway Sector Improvment, 19 Dec 02

IND-1958 SCF=0.9 Not cited Madhya Pradesh State Roads Sector Development Program, 5 Dec 02

IND-1870 SCF=0.8 Not cited West Bengal Corridor Development 11 Dec 01

IND-1868 SCF=0.9 Unskilled L=0.85 Not cited Madhya Pradesh Power Sector Development Program, 6 Dec 01

IND-1839 SCF=0.85 Not cited Western Transport Corridor 20 Sep 01

11 February 2004 Anneli Lagman-Martin

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF IND-1813 SERF=1.11 Unskilled L=0.7 Not cited Calcutta Environmental Improvement 19 Dec 00

IND-1803 SCF=0.9 Unskilled L=0.85 Not cited Gujarat Power Sector Development Program 13 Dec 00

IND-1764 SCF=0.9 SWRF=0.85 Not cited Power Transmission Improvement Sector 6 Oct 00

IND-1747 SCF=0.9 SCF is utilized in recent foreign-assisted Surat-Manor Tollway road improvement projects 27 Jul 00

IND-1704 SCF=0.9 Not cited Karnataka Urban Development and Coastal Environmental Management 26 Oct 99

IND-1647 SCF=0.9 Not cited Rajasthan Urban Infrastructure Development, 3 Dec 98

IND-1591 SCF=0.8 SWRF=0.9 Not cited LPG Pipeline, 16 Dec 97

IND-1556 SCF=0.9 Not cited Mumbai-Chennai Ports 29 Sep 97

IND-1495 SCF=0.8 Not cited Rural Telecommunications 28 Nov 96

INO-1983 SERF=1.053 SWRF=0.75 SERF based on SCF of 0.95 Power Transmission Improvement 19 Dec 02

INO-1982 SERF=1.05 Not cited Renewable Energy Development 19 Dec 02

12 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF INO-1909 SCF=0.9 Access roads=0.86 Roads CF based on TA3334: Poor Farmers’ Income Road Rehabilitation Improvement through Innovation, 15 Aug 02

INO-1469 SCF=0.94 SWRF=0.9 Not cited Integrated Pest Management for Smallholder Estate Crop 26 Sep 96

INO-1428 SCF=0.943 Latest available estimate of the SCF for North Java Improvement Indonesia 23 Jan 96

INO-1425 SCF=0.8 Civil works=0.87 Specific conversion factors based on North Java Flood Control Nontradables=0.9 latest ADB parameters for use in Sector Tradables=1.0 Indonesia. Nontradables include works 18 Jan 96 that require skilled labor and locally manufactured materials. Tradables include capital-intensive works that require imported materials.

KAZ-1779 SCF=0.95 SWRF=0.9 Not cited Farm Restructuring Sector (or a labor CF of Development Program 0.855) 14 Nov 00

KAZ-1592 SCF=0.95 SWRF=0.75 No accepted SCF for KAZ. The forex Water Resources provides one indicator of macro- Management and Land economic balance, suggesting that SCF Improvement is close to 1. Moreover, limited available 17 Dec 97 data on market prices suggest no persistent trade biases. Officially, the Government maintains a flat tariff of 10% on most commodities, which would suggest a SCF of about 0.9. In practice, however, it is believed that tariffs are rarely collected due to a lack of customs posts at international borders and the continuing importance of barter trade. Moreover, official tariffs are expected to decline during the medium term as a result of continuing trade liberalization. Hence, SCF is set at 0.95 which also tests for the sensitivity of this assumption.

KAZ-1455 SCF=1 A CF of 1 was assumed as no CF Road Rehabilitation estimate was available at the time of 27 Aug 96 preparing this Report

13 February 2004 Anneli Lagman-Martin

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF KGZ-1853 SCF=0.9 Not cited Third Road Rehabilitation 31 Oct 01

KGZ-1742 SERF=1 There is no general guidance available on Community-Based SCFs or SERFs appropriate for Kyrgyz. Infrastructure Services Previous projects in the highway sector Sector have used an SCF of 0.9, but this is for 8 Jun 00 Kazakhstan and Kyrgyz jointly. An agricultural project used an SCF of 0.98 for agricultural projects in Kyrgyz. The WB’s project analysis for rural projects used an SCF of 1 assuming no discernible distortions, and therefore a reciprocal SERF of 1 was used in this case.

KGZ-1726 SCF=0.95 Unskilled L=0.6 A recent WB project used a SCF of 1 Agriculture Area while this project’s PPTA used specific Development CFs ranging from 0.91 to 0.98. The SCF 20 Dec 99 of 0.95 seems a realistic estimate, particularly in view of the reforms and liberalization of prices initiated by the Government.

KGZ-1630 SCF=0.9 Not cited Second Road Rehabilitation 10 Sep 98

KIR-1648 SWRF=0.9 SERF not specified Sanitation, Public Health, and Environmental Improvement, 8 Dec 98

LAO-1994 SERF=1.11 Unskilled L=0.5 Consistent with those used in other Small Towns Development Skilled L=1.0 ADB-funded projects of a similar Sector Local materials=1.0 nature in Lao PDR 28 Jan 03

LAO-1989 SCF=0.8 Not cited Northern Economic Corridor 20 Dec 02

LAO-1949 SERF=1.1 SWRF=0.9 Not cited Smallholder Development 28 Nov 02

LAO-1933 SERF=1.1 SWRF=0.6 SERF and SWRF have been estimated Nam Ngum River Basin employing generally accepted assumptions Development Sector by other projects and sector studies. 11 Nov 02

14 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF LAO-1834 SERF=1.11 In-kind Labor=0.5 Not cited Vientiane Urban Infrastructure and Services, 23 Aug 01

LAO-1795 SCF=0.9 In the FS, a shadow price factor of 0.85 Rural Access Roads was used, based on local competitive 7 Dec 00 bidding for some contracts. For the final detailed cost estimates, an economic price factor of 0.9 was assumed based on international competitive bidding for some contracts.

LAO-1788 SCF=0.9 Agriculture L=0.77 Not cited Decentralized Irrigation Development and Management Sector 28 Nov 00

LAO-1710 SCF=0.9 Not cited Water Supply and Sanitation 16 Nov 99

LAO-1688 SCF=0.9 SWRF Not cited Shifting Cultivation (peak season)=0.8 Stabilization SWRF 11 May 99 (off-peak)=0.6

LAO-1558 SCF=0.9 Not cited Power Transmission and Distribution 30 Sep 97

LAO-1533 SCF=0.9 Not cited Xieng Khouang Road Improvement 9 Sep 97

LAO-1525 SCF=0.9 SCF as used in an earlier ADB project Secondary Towns Urban in Lao PDR Development 26 Jun 97

LAO-1488 SCF=0.8 SWRF=0.8 Not cited Community-Managed Irrigation Sector 21 Nov 96

LAO-1456 Because the costs of the Project mainly Nam Leuk Hydropower consist of imported items and most of 10 Sep 96 the skilled labor must be employed from outside the country during the construction period, no SCF was applied.

15 February 2004 Anneli Lagman-Martin

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF MAL-1500 SCF=0.9 Construction=0.96 Tan Tok Shiong. 1994. Shadow Prices Klang River Basin Petroleum=0.94 for Malaysia with an Extended Semi Environmental Improvement Machinery, Input-Output Method. Ph.D. thesis, and Flood Mitigation Nonelectrical=0.98 Bradford University. 5 Dec 96 Electrical=0.81 Motor vehicles=0.78 Real estate & dwellings=0.89 Other services=0.86

MLD-1887 SCF=0.9 Not cited Outer Islands Electrification Sector 18 Dec 01

MLD-1695 SCF=0.9 Skilled L=1 Regional Development Unskilled L=0.6 Not cited 2 Sep 99

MLD-1637 SCF=0.9 Not cited. SCF is applied not on the Postsecondary Education Base Case, but as part of sensitivity test. Development 30 Sep 98

MLD-1532 SCF=0.9 Not cited Third Power System Development 9 Sep 97

MON-1998 SERF=1.1 Based on ADB guidelines for Mongolia Second Health Sector Development 5 Jun 03

MON-1907 SERF=1.018 Unskilled L=1.2 SERF calculated for 2000 Integrated Development Skilled L=0.8 of Basic Urban Services in Provincial Towns 6 Aug 02

MON-1847 SERF=1.11 As inverse of SCF. Nontradable Housing (Finance) Sector components valued at market prices. 18 Oct 01

MON-1821 SCF=0.9 Not cited Agriculture Sector Development Program 21 Dec 00

16 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF MON-1700 SCF=0.88 Not cited Second Roads Development 30 Sep 99

MON-1560 SCF=1 SWRF=0.5 As there are no evident subsidies for Provincial Towns Basic other resources to be used in the Project, Urban Services nor is there a substantial difference 30 Sep 97 between the official exchange rate and the shadow exchange rate, a SCF of 1 has been used for other items.

MON-1548 SCF=0.997 SCF calculated from 1995 import and Ulaanbaatar Heat Efficiency export volume data and import and 25 Sep 97 export tax data

MON-1492 SCF=1 Based on 1995 import and export Energy Conservation volume data and import and export tax 26 Nov 96 data, SCF was calculated at 0.997

NEP-1876 SCF=0.88 Not cited Road Network Development 13 Dec 01

NEP-1778 SCF=0.9 SCF as generally adopted for project Crop Diversification analysis in Nepal 9 Nov 00

NEP-1755 SCF=0.9 Unskilled L=0.7 Not cited Small Towns Water Supply and Sanitation Sector 12 Sep 00

NEP-1732 SCF=0.9 Not cited Rural Electrification, Distribution and Transmission, 21 Dec 99

NEP-1650 SCF=0.9 SWRF=0.5 Not cited Rural Microfinance 8 Dec 98

NEP-1609 SCF=0.9 Not cited Community Groundwater Irrigation Sector, 26 Feb 98

NEP-1512 SCF=0.9 Not cited Tribhuvan International Airport Improvement 23 Jan 97

17 February 2004 Anneli Lagman-Martin

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF NEP-1464 SCF=0.9 With no major distortions in wage and Fourth Rural Water Supply commodity prices in Nepal, the benefits and Sanitation Sector have not been shadow priced. 24 Sep 96

NEP-1461 SCF=0.9 Not cited Third Livestock Development 19 Sep 96

NEP-1452 SCF=0.9 Not cited Kali Gandaki “A” Hydroelectric 23 Jul 96

NEP-1451 SCF=0.9 Not cited Second Tourism Development 2 Jul 96

NEP-1450 SCF=0.9 Civil works=0.82 SCF in line with the economic Rural Infrastructure Transport=0.85 assessments of other projects in Nepal Development Fruits=1.6 27 Jun 96

NEP-1437 SCF=0.92 SWRF=0.92 Not cited Second Irrigation Sector 16 May 96

PAK-1987/88 SCF=0.9 SWRF=0.75 Not cited Rural Finance Sector Development Program 20 Dec 02

PAK-1950 SCF=0.9 Skilled L=1.1 Not cited Punjab Community Water Unskilled L=0.8 Supply and Sanitation Female L=0.7 28 Nov 02

PAK-1934 SCF=0.9 SWRF=0.75 Not cited Sindh Rural Development 20 Nov 02

PAK-1928 SCF=0.9 Not cited Punjab Road Development Sector, 31 Oct 02

PNG-1925 SCF=0.9 Not cited Coastal Fisheries Management and Development, 24 Oct 02

18 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF PAK-1891 Economic costs estimated by first Road Sector Development identifying ratios of market price to Program economic costs, and then by multiplying 19 Dec 01 the ratio by the market price for each vehicle category separately

PAK-1854 Economic evaluations were based on the North-West Frontier domestic price numeraire and exclude Province Urban Development taxes (10%) and other market Sector distortions (with a SCF of 0.85). 8 Nov 01 A SERF was applied to tradable components of project costs.

PAK-1787 SCF=0.9 Rural L=0.78 Not cited Northwest Frontier Province Barani Area Development, 28 Nov 00

PAK-1679 SCF=0.9 SWRF=0.85 Based on data from Country Economic Punjab Farmer-Managed Review (Sep 1997), the SER was Irrigation re-estimated during appraisal. PPTA 25 Mar 99 (2452-PAK) report noted that “SCF is estimated by weighted average of import and export tariff excluding subsidies. The weights are based on the volume of imports and exports in the total trade of the country during the year. An average of five years is taken to account for fluctuation in trade regimes, taxes and subsidies.” Derivation of the SCF is provided in Annex 9 Table 23.

PAK-1672 SCF=0.9 Not cited Malakand Rural Development 18 Mar 99

PAK-1578 SERF=1.15 SWRF=0.75 SERF estimated by the consultants Second Flood Protection Sector 13 Nov 97

PAK-1539 SCF=0.9 SWRF=0.64 Not cited Korangi Wastewater Management 18 Sep 97

PAK-1531 SCF=0.9 Not cited Dera Ghazi Khan Rural Development 4 Sep 97

19 February 2004 Anneli Lagman-Martin

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF PAK-1467 SCF=0.9 Not cited Bahawalpur Rural Development 26 Sep 96

PAK-1424 SCF=0.837 Unskilled L=0.7 An average SCF was estimated at 0.88 Ghazi Barotha Hydropower from trade data for a period of 5 years 16 Jan 96 using the standard definition. Based on these assumptions, the SCF for the Project was estimated as 0.837.

PHI-1984 SERF=1.2 Unskilled L=0.7 SERF as inverse of SCF of 0.83 Electricity Market and Transmission Development 19 Dec 02

PHI-1843 SERF=1.22 Unskilled L=0.7 As inverse of SCF Mindanao Basic Urban Services Sector 27 Sep 01

PHI-1772 SCF=0.91 SWRF=0.68 SCF calculated using model developed by Infrastructure for Rural the Harvard Institute for International Productivity Enhancement Development (HIID) and 1997 data Sector (latest available). Sensitivity analysis 31 Oct 00 used SCF of 0.83, as calculated by the National Economic and Development Authority (NEDA).

PHI-1745 SERF=1.21 Unskilled L=0.6 Not cited Pasig River Environmental Land for Management and resettlement=0.2 Rehabilitation Sector 20 Jul 00

PHI-1668 SERF=1.11 Unskilled L=0.7 Not cited Southern Philippines Irrigation Sector 18 Dec 98

PHI-1667 SCF=0.83 Skilled L=1 SCF based on the estimate of NEDA Agrarian Reform Communities 18 Dec 98

PHI-1665 SCF=0.9 Domestic machinery, Not cited Metro Manila Air Quality civil works=1..3 Improvement Sector Transport=1.2 Development Program 16 Dec 98

20 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF PHI-1658 SERF=1.11 Unskilled L=0.6 SCF has been adopted following ADB’s Clark Area Municipal standards Development 15 Dec 98

PHI-1599 SERF=1.19 CF is the same as the one adopted for Subic Bay Area Municipal ADB’s Regional Municipal Development Development Project in 1995 19 Dec 97

PHI-1590 SCF=0.82 Not cited Power Transmission Reinforcement 16 Dec 97

PHI-1562 SERF=1.11 SWRF=0.6 Not cited Fisheries Resource Management 16 Oct 97

PHI-1536 SCF=0.82 Not cited Third Airports Development (Southern Philippines) 16 Sep 97

PHI-1473 SERF=1.20 SWRF=0.6 Not cited Sixth Road, 30 Sep 96

PHI-1472 SCF=0.9 SWRF=0.6 Not cited Small Towns Water Supply Sector 30 Sep 96

PHI-1453 SCF=0.82 Based on 1994 economic data, using Bukidnon Integrated Area the model developed by HIID. Development Economic Parameters for the Appraisal 23 Jul 96 of Investment Projects: Bangladesh, Indonesia and Philippines, Dec 1993.

PHI-1440 SCF=0.9 SCF from World Bank Rural Water Supply and Sanitation Sector, 4 Jun 96

PHI-1421 SCF=0.8 Transport=0.84 Based on HIID study by Jenkins and Cordillera Highland El-Hifnawi Agricultural Resource Management 11 Jan 96

PNG-1812 SERF=1.1 Not cited Provincial Towns Water Supply and Sanitation 14 Dec 00

21 February 2004 Anneli Lagman-Martin

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF

PNG-1754 SCF=0.96 Local L=0.85 Not cited Rehabilitation of the Maritime Navigation Aids System, 12 Sep 00

PNG-1656 SCF=0.9 SCF is as recommended by ADB Fisheries Development 11 Dec 98

PNG-1652 SCF=0.9 SWRF=0.7 Not cited Smallholder Support Services Pilot 10 Dec 98

PRC-1996 SCF=0.89 Not cited, but note: SERF should have Wuhan Wastewater been used instead of SCF since the Management domestic price numeraire is used. 25 Apr 03

PRC-1995 SERF=1.08 Skilled L=2.0 Not cited Harbin Water Supply Unskilled L=0.67 11 Mar 03

PRC-1967 SERF=1.08 Not cited Shaanxi Road Development II 12 Dec 02

PRC-1922 SCF=0.93 Equipment=1.0 Not cited Hebei Zhanghewan Steel=1.67 Pumped Storage Cement=0.76 18 Oct 02 Timber=0.82 Skilled L=2.0 Unskilled L=0.67

PRC-1919 SERF=1.07 SWRF=0.9 SERF is the inverse of the SCF, which is Songhua River Flood 0.93 based on recent project economic Management Sector analysis for PRC-1835: Yellow River 20 Sep 02 Flood Mgt Sector approved in Aug 01

PRC-1918 SERF=1.08 Unskilled L=0.67 Not cited Southern Sichuan Roads Development 20 Sep 02

PRC-1901 SCF=0.93 Equipment=1.0 SPERC: Report on Shen-Da Shen-Da Power Steel=1.51 Transmission Project Transmission and Grid Cement=0.69 Rehabilitation Timber=0.63 20 Dec 01 Skilled L=2 Unskilled L=0.67

22 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF

PRC-1890 SERF=1.11 Skilled L=0.8 SERF as inverse of SCF of 0.9 used by Acid Rain Control and Semi-skilled L=1 ADB for PRC projects Environmental Improvement Unskilled L=1.2 19 Dec 01 Average CF=0.8-0.82

PRC-1851 SERF=1.08 Equipment=0.967 Not cited Guangxi Roads Development Local road 30 Oct 01 construction and maintenance=0.9

PRC-1850 SERF=1.08 Unskilled L=0.75 Not cited Ganzhou-Longyan Railway Skilled L=1.0 30 Oct 01

PRC-1838 SERF=1.08 Unskilled L=0.75 Not cited Shaanxi Road Development Skilled L=1.0 30 Aug 01

PRC-1835 SERF=1.07 Unskilled L=0.9 As inverse of SCF of 0.93 Yellow River Flood Management Sector 28 Aug 01

PRC-1818 SCF=0.93 Skilled L=2 Not cited Wind Power Development Unskilled L=0.67 20 Dec 00 Equipment=1 Steel=1.51 Cement=0.69 Timber=0.63

PRC-1797 SERF=1.11 Land=0.51-0.8 Tianjin Wastewater Unskilled L=0.8 Treatment and Water Skilled L=1 See Supplementary Appendix E for a Resources, 11 Dec 00 more detailed discussion.

PRC-1783 SERF=1.08 Unskilled L=0.75 Not cited Chongqing-Guizhou Skilled L=1 Roads Development Capital=0.964 21 Nov 00 O&M=1

PRC-1748 SERF=1.08 Unskilled L=0.75 Hefei-Xi’an Railway Skilled L=1 Not cited 17 Aug 00

PRC-1715 SCF=0.9 Domestic machinery, CFs are consistent with those used in Shanxi Environmental civil works & ADB projects in PRC. Improvement construction=1.3 7 Dec 99 Transport=1.2 Skilled L=1.3 Unskilled L=0.8

23 February 2004 Anneli Lagman-Martin

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF

PRC-1701 SERF=1.08 Unskilled L=0.75 Not cited Shanxi Road Development Skilled L=1 30 Sep 99 Capital=0.964 O&M=1

PRC-1692 SCF=0.93 Unskilled L=0.8 CFs have been used for other ADB Suzhou Creek Rehabilitation Skilled L=2 projects in PRC 29 Jun 99 Power=1.3

PRC-1691 SERF=1.08 Workers Not cited Southern Yunnan Road permanent=1 Development temporary=0.5 24 Jun 99 (average of 0.85) Civil works, O&M=0.96

PRC-1644 SCF=0.93 Skilled L=2 The methodology and presentation of Yunnan Dachaoshan Power Unskilled L=0.667 shadow prices are detailed in the report Transmission Equipment=1 prepared by BERI: Least Cost Study 27 Nov 98 Steel=1.286 for Yunnan Power System and Cement=0.623 Economic Analysis on the Dachaoshan Timber=1.378 Power Transmission Project.

PRC-1641 SERF=1.08 Capital=0.9 Not cited Changchun-Harbin O&M=0.98 Expressway SWRF=1 27 Nov 98

PRC-1638 SERF=1.08 Skilled L=1.5 Not cited Chengdu-Nanchong Unskilled L=0.5 Expressway (or average SWRF 10 Nov 98 of 0.65) Civil works, O&M=0.95

PRC-1636 SCF=0.93 Unskilled L=0.8 Not cited Fuzhou Water Supply and Skilled L=2 Wastewater Treatment Domestic machinery, 30 Sep 98 civil works/ construction=1.3

PRC-1625 SCF=0.926 Not cited Ghuizou-Shuibai Railway 18 Aug 98

24 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF

PRC-1617 SCF=0.926 Not cited Hebei Roads Development 18 Jun 98

PRC-1584 SCF=0.926 Skilled L=1.5 Not cited Xiamen Port Civil works/ 27 Nov 97 maintenance, equipment/ maintenance=0.99

PRC-1582 SCF=0.98 Various CFs Not cited Northeast Power differentiated Transmission between North 25 Nov 97 and South for equipment, steel, cement, timber, skilled labor

PRC-1553 SCF=0.9 Not cited Shenmu-Yanan Railway 29 Sep 97

PRC-1544 SERF=1.08 Skilled L=2 CFs consistent with those used in Zhejiang-Shanxi Water Unskilled L=0.8 previous ADB projects in PRC Supply I Domestic machinery, 24 Sep 97 civil works & construction=1.3 Transportation=1.2

PRC-1490 SCF=1.4 Unskilled L=0.8 Not cited, but application seems to Anhui Environmental Semi-skilled L=1 indicate that the SCF should be Improvement Project for Skilled L=1.2 referred to as SERF Municipal Wastewater Utilities=1.4 Treatment, 26 Nov 96

PRC-1484 SCF=0.92 SWRF=0.5 Not cited Jiangxi Expressway 19 Nov 96

PRC-1483 SCF=0.9 Not cited Shenyang-Jinzhou Expressway 19 Nov 96

PRC-1470 SCF=0.9 Not cited Chongqing Expressway 27 Sep 96

PRC-1439 SCF=0.9 Not cited Daxian-Wanxian Railway 4 Jun 96

25 February 2004 Anneli Lagman-Martin

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF

PRC-1436 Group CF of 1.4 for locally produced Second Industrial Energy goods Efficiency and Environment Group CF of 1.5 for operating cost Improvement, 9 May 96 components

PRC-1427 SCF=0.9 Cement=0.7 Not cited Fangcheng Port 18 Jun 96

REG-1977 SCF=0.9 CAR: Regional Power (TAJ), 0.7 Not cited Transmission Modernization (UZB) 17 Dec 02

REG-1774 SCF=0.9 Not cited Almaty-Bishkek Regional Road Rehabilitation 31 Oct 00

REG-1969/70/71 SERF=1.11 SWRF: Not cited GMS: Mekong Tourism CAM=0.75 Development VIE=0.65 12 Dec 02 LAO=0.6

REG-1727 SCF=0.85 CFs not specified SCF has been established as a standard GMS: East-West Corridor for similar externally financed projects 20 Dec 99 in Viet Nam and elsewhere

REG-1659 SCF=0.85 SCF has been established as a standard GMS: Phnom Penh to for similar externally financed projects Ho Chi Minh City elsewhere Highway, 15 Dec 98

RMI-1948 Financial costs converted to economic costs Outer Island Transport by eliminating price escalation and IDC Infrastructure as well as taxes and duties from 28 Nov 02 financial costs

RMI-1694 SCF=0.9 Unskilled L=0.7 In March 1999, the Government Ebeye Health and announced its intention to reduce the Infrastructure general import duty to 5%. Allowing 12 Aug 99 some room for commodity-specific import duties and elements of non-tariff barriers, a SCF of 0.9 is applied

SAM-1886 SCF=0.8 Not cited Power Sector Improvement 17 Dec 01

26 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF

SRI-1993 SERF=1.1 Unskilled L=0.7 Not cited Secondary Towns and Overall adjustment Community-Based factor=0.82 Rural WSS 16 Jan 03

SRI-1913/14 SCF=0.94 SWRF=1.0 Not cited Plantation Development 13 Sep 02

SRI-1986 SCF=0.785 Not cited Road Sector Development, 19 Dec 02

SRI-1849 SCF=0.9 SWRF=0.75 Not cited Southern Province Rural Economic Advancement, 26 Oct 01

SRI-1767 SCF=0.9 SWRF=0.81 SCF is consistent with recent SCFs Protected Area Management applied in ADB and WB projects and Wildlife Conservation 19 Oct 00

SRI-1757 SCF=0.94 Skilled L=1 SCF computed from 10 years data of Water Resources Unskilled l=0.7 the Central Bank of Sri Lanka Management Electricity=1.1 19 Sep 00

SRI-1756 SCF=0.85 Not cited Secondary Education Modernization 12 Sep 00

SRI-1716 SCF=0.9 SWRF=0.8 Not cited Coastal Resource Management 7 Dec 99

SRI-1711 SCF=0.785 Not cited Southern Transport Development 25 Nov 99

SRI-1649 SCF=0.785 Not cited Road Network Improvement 8 Dec 98

SRI-1639 SCF=0.9 Not cited Tea Development 10 Nov 98

27 February 2004 Anneli Lagman-Martin

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF SRI-1632 SERF=1.11 Not cited Urban Development and Low Income Housing 24 Sep 98

SRI-1575 SERF=1.1 SWRF=0.7 Not cited Third Water Supply and Sanitation Sector 6 Nov 97

SRI-1567 SCF=0.85 Not cited Southern Provincial Roads Improvement 30 Oct 97

SRI-1552 SCF=0.9 Not cited Second Perennial Crops Development 25 Sep 97

SRI-1545 SCF=0.9 SWRF=0.9 SCF is the most recent estimate Upper Watershed calculated by ADB and is consistent Management with recent World Bank documents 24 Sep 97

SRI-1462 SCF=0.9 SWRF=0.9 Not cited North Central Province Rural Development 24 Sep 96

SRI-1438 SCF=0.8 Not cited Emergency Rehabilitation of Petroleum Facilities 16 May 96

TAJ-1980 SCF=0.9 SWRF=0.8 Not cited Agriculture Rehabilitation Sector Development Program, 18 Dec 02

TAJ-1819 SCF=0.9 Unskilled L=0.75 Not cited Road Rehabilitation 20 Dec 00

TAJ-1817 SCF=0.9 Not cited Power Rehabilitation 20 Dec 00

THA-1528 SCF=0.92 SWRF=0.8 Not cited Nong Khai-Udon Thani Water Supply 1 Jul 97

28 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF

THA-1489 SCF=0.9 Not cited Third Rural Telecommunications 26 Nov 96

THA-1429 SCF=0.92 Not cited Rural Electrification 23 Jan 96

TON-1497 SCF=0.8 Revenues=0.7 Not cited Tonga Power Development 3 Dec 96

TUV-1921 Capital investment costs converted to Maritime Training economic equivalent allowing for 16 Oct 02 transfer payments, taxes and duties, and the effects of inflation. Economic costs, produced as an output from COSTAB, indicate an overall conversion factor of 0.968 for the project baseline costs.

UZB-1903 SERF=1.4 Labor=0.8 SERF based on the relationship between Western Uzbekistan official rate and commercial rate Rural Water Supply 2 May 02

UZB-1842 SERF=2 Labor=0.8 Based on the existing relationship Urban Water Supply between the commercial rate and the 27 Sep 01 estimated SERF (calculated based on the weighted average of the three exchange rates existing in UZB: official rate, commercial rate, market rate; and the estimated volume of transactions at each rate). Labor: excess employment in communal services for both skilled and unskilled.

UZB-1833 SERF=2 SWRF=0.8 Highly overvalued exchange rate. Ak Altin Agricultural Civil works=0.93 Labor: less than full employment in Development rural areas 23 Aug 01

UZB-1773 SCF=0.75 Not cited Railway Modernization 31 Oct 00

UZB-1657 SCF=0.75 Not cited Road Rehabilitation 15 Dec 98

29 February 2004 Anneli Lagman-Martin

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF

UZB-1631 SCF=0.75 Not cited Railway Rehabilitation 15 Sep 98

UZB-1504 SERF=1.25 SERF was considered appropriate in view Rural Enterprise of uncertainties in the foreign exchange Development market vis-à-vis the relatively sound 17 Dec 96 economic fundamentals in the medium term. SERF was sensitivity-tested at 1.12 and 1.50

VIE-1855 SERF=1.043 Derived by dividing SER (D14599/$) Second Red River with OER (D14000/$) Basin Sector 13 Nov 01

VIE-1880 SERF=1.11 Unskilled L=0.65 Not cited Third Provincial Towns Water Supply and Sanitation, 13 Dec 01

VIE-1888 SCF=0.93 Rural L=0.57 Calculated by means of domestic to Provincial Roads Skilled L=0.97 border price conversion Improvement Sector 18 Dec 01

VIE-1979 No mention of economic pricing Upper Secondary assumptions Education Development 17 Dec 02

VIE-1781 SCF=0.9 SWRF=0.8 Not cited Tea and Fruit Development 14 Nov 00

VIE-1702 SERF=1.11 Unskilled L=0.65 Ho Chi Minh City Skilled L=1 Not cited Environmental Improvement 7 Oct 99

VIE-1653 SCF=0.85 SCF has been established as a standard Third Road Improvement for similar externally financed projects 10 Dec 98 elsewhere.

VIE-1585 SCF=0.8 Not cited Central and Southern Viet Nam Power Distribution 27 Sep 97

30 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

LOAN NO./TITLE/APPROVAL SOURCE/REMARKS DATE SCF/SERF OTHER CFS IN RRP RE SCF/SERF

VIE-1564 SCF=0.8 Not cited Rural Infrastructure Sector 23 Oct 97

VIE-1515 SERF=1.08 Not cited Forestry Sector, 20 Mar 97

VIE-1514 SCF=0.9 SWRF=0.6 Second Provincial Power=1.4 Towns Water Supply and Sanitation, 27 Feb 97

VIE-1487 Economic costs derived by adjusting Second Road Improvement financial costs by 5% to account for 21 Nov 96 taxes and duties and a small adjustment for the SWR.

Source: RRPs approved from 1996 to August 2003.

Legend: AFG Afghanistan NEP Nepal BHU Bhutan PAK Pakistan CAM Cambodia PHI Philippines COO Cook Islands PNG Papua New Guinea FIJ Fiji, Republic of PRC People’s Republic of China FSM Micronesia, Federated State of REG Regional IND India RMI Marshall Islands, Republic of INO Indonesia SRI Sri Lanka KAZ Kazakhstan THA Thailand KGZ Kyrgyz, Republic of TAJ Tajikistan KIR Kiribati TON Tonga LAO Lao People’s Democratic Republic TUV Tuvalu MAL Malaysia UZB Uzbekistan MLD Maldives VIE Viet Nam MON Mongolia

Other Abbreviations: CER Country Economic Report CF conversion factor L labor O&M operation and maintenance SWRF shadow wage rate factor

31 February 2004 Anneli Lagman-Martin ittee ance of Azerbaijan ance of ance of Azerbaijan ance of Azerbaijan ance of ank of Azerbaijan ank of ank of Azerbaijan ank of Source Source Source Source Source Average Average Average Average Average 2002 2002 2002 2002 2002 23.0 17.3Azerbaijan Ministry of of Finance 2001 2001 2001 2001 2001 2000 2000 2000 2000 2000 183.1 39.2 99.3 Fin of Ministry 1999 1999 1999 1999 1999 eixhs2PX 1998 1998 1998 1998 1998 677.8 1025.2 1799.0 2045.9 2304.9246.5 269.5 271.3 237.3 259.5 B National Fin of Ministry 323.5198.5 357.6124.9 179.7 534.1 177.8 210.7 322.6 323.4 132.8 393.3 189.8 165.0 228.3 Fin of Ministry estimate staff ADB estimate staff ADB 1077.0 1036.0 1172.1 1430.9 1665.3 Comm Statistics State 3868.7 4120.2 4474.2 4656.0 4860.8 B National ewvi2gevg vesyx2yp2gpX2eifestex Unit Unit Unit Unit Unit Import dutiesmanats Billion Export dutiesmanats Billion 0.0 8.1 Export TaxExport Estimated share of importsEstimated share of exportsmanats Billion Estimated share of importsmanats Billion Estimated share of exports manats Billion manats Billion 23.6manats Billion 14.9 20.1 19.9 0.0 15.7 24.1 0.0 9.5 13.5 0.0 7.2 10.0 0.0 0.0estimate staff ADB estimate staff ADB Azerbaijan Ministry of of Finance

Merchandise imports (cif)Merchandise exports (fob) on international tradeTaxes dollars US Million dollars US Million manats Billion

Customs chargesOther taxes on international trademanats Billion rateExchange manats Billion 38.5 40.0 39.8 Manats per US$ Standard conversion factor 0.95 0.97 1.00 0.99 1.00 0.98

32 ERD Technical Note No. 11 hdow2 ixhnge2 tes2 for2 rojet2 ionomi2 enlysis

ipiixgi

ADB, 1997. Guidelines for the Economic Analysis of Projects. Asian Development Bank, Manila. ———, 2003. Economic Analysis in 2002: A Retrospective. Economics and Research Department, Asian Development Bank, Manila. Curry, S., and J. Weiss, 2000. Project Analysis in Developing Countries. 2nd ed. London: Palgrave Macmillan. IMF, various years. Government FinanceStatistics Yearbook. CD-ROM. International Monetary Fund, Washington, D.C. ———, various years. International Financial Statistics. CD-ROM. International Monetary Fund, Washington, D.C. Jenkins, G., and M.B. El-Hifnawi, 1993. Economic Parameters for the Appraisal of Investment Projects: Bangladesh, Indonesia, and the Philippines. Asian Development Bank, Manila. Unpublished. Overseas Development Administration, 1988. Appraisal of Projects in Developing Countries: A Guide for Economists. Her Majesty’s Stationery Office, London.

33 PUBLICATIONS FROM THE ECONOMICS AND RESEARCH DEPARTMENT

ERD WORKING PAPER SERIES (WPS) (Published in-house; Available through ADB Office of External Relations; Free of Charge)

No. 1 Capitalizing on Globalization No. 16 The Role of Infrastructure in Land-use Dynamics —Barry Eichengreen, January 2002 and Rice Production in Viet Nam’s Mekong River No. 2 Policy-based Lending and Poverty Reduction: Delta An Overview of Processes, Assessment —Christopher Edmonds and Options July 2002 —Richard Bolt and Manabu Fujimura No. 17 Effect of Decentralization Strategy on January 2002 Macroeconomic Stability in Thailand No. 3 The Automotive Supply Chain: Global Trends —Kanokpan Lao-Araya and Asian Perspectives August 2002 —Francisco Veloso and Rajiv Kumar No. 18 Poverty and Patterns of Growth January 2002 —Rana Hasan and M. G. Quibria No. 4 International Competitiveness of Asian Firms: August 2002 An Analytical Framework No. 19 Why are Some Countries Richer than Others? —Rajiv Kumar and Doren Chadee A Reassessment of Mankiw-Romer-Weil’s Test of February 2002 the Neoclassical Growth Model No. 5 The International Competitiveness of Asian —Jesus Felipe and John McCombie Economies in the Apparel Commodity Chain August 2002 —Gary Gereffi No. 20 Modernization and Son Preference in People’s February 2002 Republic of China No. 6 Monetary and Financial Cooperation in East —Robin Burgess and Juzhong Zhuang Asia—The Chiang Mai Initiative and Beyond September 2002 —Pradumna B. Rana No. 21 The Doha Agenda and Development: A View from February 2002 the Uruguay Round No. 7 Probing Beneath Cross-national Averages: Poverty, —J. Michael Finger Inequality, and Growth in the Philippines September 2002 —Arsenio M. Balisacan and Ernesto M. Pernia No. 22 Conceptual Issues in the Role of Education March 2002 Decentralization in Promoting Effective Schooling in No. 8 Poverty, Growth, and Inequality in Thailand Asian Developing Countries —Anil B. Deolalikar —Jere R. Behrman, Anil B. Deolalikar, and Lee- April 2002 Ying Son No. 9 Microfinance in Northeast Thailand: Who Benefits September 2002 and How Much? No. 23 Promoting Effective Schooling through Education —Brett E. Coleman Decentralization in Bangladesh, Indonesia, and April 2002 Philippines No. 10 Poverty Reduction and the Role of Institutions in —Jere R. Behrman, Anil B. Deolalikar, and Lee- Developing Asia Ying Son —Anil B. Deolalikar, Alex B. Brilliantes, Jr., September 2002 Raghav Gaiha, Ernesto M. Pernia, Mary Racelis No. 24 Financial Opening under the WTO Agreement in with the assistance of Marita Concepcion Castro- Selected Asian Countries: Progress and Issues Guevara, Liza L. Lim, Pilipinas F. Quising —Yun-Hwan Kim May 2002 September 2002 No. 11 The European Social Model: Lessons for No. 25 Revisiting Growth and Poverty Reduction in Developing Countries Indonesia: What Do Subnational Data Show? —Assar Lindbeck —Arsenio M. Balisacan, Ernesto M. Pernia, May 2002 and Abuzar Asra No. 12 Costs and Benefits of a Common Currency for October 2002 ASEAN No. 26 Causes of the 1997 Asian Financial Crisis: What —Srinivasa Madhur Can an Early Warning System Model Tell Us? May 2002 —Juzhong Zhuang and J. Malcolm Dowling No. 13 Monetary Cooperation in East Asia: A Survey October 2002 —Raul Fabella No. 27 Digital Divide: Determinants and Policies with May 2002 Special Reference to Asia No. 14 Toward A Political Economy Approach —M. G. Quibria, Shamsun N. Ahmed, Ted to Policy-based Lending Tschang, and Mari-Len Reyes-Macasaquit —George Abonyi October 2002 May 2002 No. 28 Regional Cooperation in Asia: Long-term Progress, No. 15 A Framework for Establishing Priorities in a Recent Retrogression, and the Way Forward Country Poverty Reduction Strategy —Ramgopal Agarwala and Brahm Prakash —Ron Duncan and Steve Pollard October 2002 June 2002

34 No. 29 How can Cambodia, Lao PDR, Myanmar, and Viet April 2003 Nam Cope with Revenue Lost Due to AFTA Tariff No. 40 The Puzzle of Social Capital Reductions? A Critical Review —Kanokpan Lao-Araya —M. G. Quibria November 2002 May 2003 No. 30 Asian Regionalism and Its Effects on Trade in the No. 41 Industrial Structure, Technical Change, and the 1980s and 1990s Role of Government in Development of the —Ramon Clarete, Christopher Edmonds, and Electronics and Information Industry in Jessica Seddon Wallack Taipei,China November 2002 —Yeo Lin No. 31 New Economy and the Effects of Industrial May 2003 Structures on International Equity Market No. 42 Economic Growth and Poverty Reduction Correlations in Viet Nam —Cyn-Young Park and Jaejoon Woo —Arsenio M. Balisacan, Ernesto M. Pernia, and December 2002 Gemma Esther B. Estrada No. 32 Leading Indicators of Business Cycles in Malaysia June 2003 and the Philippines No. 43 Why Has Income Inequality in Thailand —Wenda Zhang and Juzhong Zhuang Increased? An Analysis Using 1975-1998 Surveys December 2002 —Taizo Motonishi No. 33 Technological Spillovers from Foreign Direct June 2003 Investment—A Survey No. 44 Welfare Impacts of Electricity Generation Sector —Emma Xiaoqin Fan Reform in the Philippines December 2002 —Natsuko Toba No. 34 Economic Openness and Regional Development in June 2003 the Philippines No. 45 A Review of Commitment Savings Products in —Ernesto M. Pernia and Pilipinas F. Quising Developing Countries January 2003 —Nava Ashraf, Nathalie Gons, Dean S. Karlan, No. 35 Bond Market Development in East Asia: and Wesley Yin Issues and Challenges July 2003 —Raul Fabella and Srinivasa Madhur No. 46 Local Government Finance, Private Resources, January 2003 and Local Credit Markets in Asia No. 36 Environment Statistics in Central Asia: Progress —Roberto de Vera and Yun-Hwan Kim and Prospects October 2003 —Robert Ballance and Bishnu D. Pant July 2003 March 2003 No. 47 Excess Investment and Efficiency Loss During No. 37 Electricity Demand in the People’s Republic of Reforms: The Case of Provincial-level Fixed-Asset China: Investment Requirement and Investment in People’s Republic of China Environmental Impact —Duo Qin and Haiyan Song —Bo Q. Lin October 2003 March 2003 No. 48 Is Export-led Growth Passe? Implications for No. 38 Foreign Direct Investment in Developing Asia: Developing Asia Trends, Effects, and Likely Issues for the —Jesus Felipe Forthcoming TWO Negotiations December 2003 —Douglas H. Brooks, Emma Xiaoqin Fan, No. 49 Changing Bank Lending Behavior and Corporate and Lea R. Sumulong Financing in Asia: Some Research Issues April 2003 —Emma Xiaoqin Fan and Akiko Terada-Hagiwara No. 39 The Political Economy of Good Governance for December 2003 Poverty Alleviation Policies —Narayan Lakshman

35 ERD TECHNICAL NOTE SERIES (TNS) (Published in-house; Available through ADB Office of External Relations; Free of Charge)

No. 1 Contingency Calculations for Environmental No. 7 Strengthening the Economic Analysis of Natural Impacts with Unknown Monetary Values Resource Management Projects —David Dole —Keith Ward February 2002 September 2003 No. 2 Integrating Risk into ADB’s Economic Analysis No. 8 Testing Savings Product Innovations Using an of Projects Experimental Methodology —Nigel Rayner, Anneli Lagman-Martin, —Nava Ashraf, Dean S. Karlan, and Wesley Yin and Keith Ward November 2003 June 2002 No. 9 Setting User Charges for Public Services: Policies No. 3 Measuring Willingness to Pay for Electricity and Practice at the Asian Development Bank —Peter Choynowski —David Dole July 2002 December 2003 No. 4 Economic Issues in the Design and Analysis of a No. 10 Beyond Cost Recovery: Setting User Charges for Wastewater Treatment Project Financial, Economic, and Social Goals —David Dole —David Dole and Ian Bartlett July 2002 January 2004 No. 5 An Analysis and Case Study of the Role of No. 11 Shadow Exchange Rates for Project Economic Environmental Economics at the Asian Analysis: Toward Improving Practice at the Asian Development Bank Development Bank —David Dole and Piya Abeygunawardena —Anneli Lagman-Martin September 2002 February 2004 No. 6 Economic Analysis of Health Projects: A Case Study in Cambodia —Erik Bloom and Peter Choynowski May 2003

ERD POLICY BRIEF SERIES (PBS) (Published in-house; Available through ADB Office of External Relations; Free of charge)

No. 1 Is Growth Good Enough for the Poor? No. 7 Causes of the 1997 Asian Financial Crisis: What —Ernesto M. Pernia, October 2001 Can an Early Warning System Model Tell Us? No. 2 India’s Economic Reforms —Juzhong Zhuang and Malcolm Dowling, What Has Been Accomplished? June 2002 What Remains to Be Done? No. 8 The Role of Preferential Trading Arrangements —Arvind Panagariya, November 2001 in Asia No. 3 Unequal Benefits of Growth in Viet Nam —Christopher Edmonds and Jean-Pierre Verbiest, —Indu Bhushan, Erik Bloom, and Nguyen Minh July 2002 Thang, January 2002 No. 9 The Doha Round: A Development Perspective No. 4 Is Volatility Built into Today’s World Economy? —Jean-Pierre Verbiest, Jeffrey Liang, and Lea —J. Malcolm Dowling and J.P. Verbiest, Sumulong February 2002 July 2002 No. 5 What Else Besides Growth Matters to Poverty No. 10 Is Economic Openness Good for Regional Reduction? Philippines Development and Poverty Reduction? The —Arsenio M. Balisacan and Ernesto M. Pernia, Philippines February 2002 —E. M. Pernia and P. F. Quising No. 6 Achieving the Twin Objectives of Efficiency and October 2002 Equity: Contracting Health Services in Cambodia No. 11 Implications of a US Dollar Depreciation for Asian —Indu Bhushan, Sheryl Keller, and Brad Schwartz, Developing Countries March 2002 —Emma Fan July 2002

36 No. 12 Dangers of Deflation No. 18 Public–Private Partnership for Competitiveness —D. Brooks and P. F. Quising —Jesus Felipe December 2002 June 2003 No. 13 Infrastructure and Poverty Reduction— No. 19 Reviving Asian Economic Growth Requires Further What is the Connection? Reforms —I. Ali and E. Pernia —Ifzal Ali January 2003 June 2003 No. 14 Infrastructure and Poverty Reduction— No. 20 The Millennium Development Goals and Poverty: Making Markets Work for the Poor Are We Counting the World’s Poor Right? —Xianbin Yao —M. G. Quibria May 2003 July 2003 No. 15 SARS: Economic Impacts and Implications No. 21 Trade and Poverty: What are the Connections? —Emma Xiaoqin Fan —Douglas H. Brooks May 2003 July 2003 No. 16 Emerging Tax Issues: Implications of Globalization No. 22 Adapting Education to the Global Economy and Technology —Olivier Dupriez —Kanokpan Lao Araya September 2003 May 2003 No. 23 Foreign Direct Investment: The Role of Policy No. 17 Pro-Poor Growth: What is It and Why is It —Douglas H. Brooks and Lea R. Sumulong Important? December 2003 —Ernesto M. Pernia May 2003

SERIALS (Co-published with Oxford University Press; Available commercially through Oxford University Press Offices, Associated Companies, and Agents)

1. Asian Development Outlook (ADO; annual) $36.00 (paperback)

2. Key Indicators of Developing Asian and Pacific Countries (KI; annual) $35.00 (paperback)

JOURNAL (Published in-house; Available commercially through ADB Office of External Relations)

1. Asian Development Review (ADR; semiannual) $5.00 per issue; $8.00 per year (2 issues)

37 MONOGRAPH SERIES (Published in-house; Available through ADB Office of External Relations; Free of charge)

EDRC REPORT SERIES (ER)

No. 1 ASEAN and the Asian Development Bank No. 22 Effects of External Shocks on the Balance —Seiji Naya, April 1982 of Payments, Policy Responses, and Debt No. 2 Development Issues for the Developing East Problems of Asian Developing Countries and Southeast Asian Countries —Seiji Naya, December 1983 and International Cooperation No. 23 Changing Trade Patterns and Policy Issues: —Seiji Naya and Graham Abbott, April 1982 The Prospects for East and Southeast Asian No. 3 Aid, Savings, and Growth in the Asian Region Developing Countries —J. Malcolm Dowling and Ulrich Hiemenz, —Seiji Naya and Ulrich Hiemenz, February 1984 April 1982 No. 24 Small-Scale Industries in Asian Economic No. 4 Development-oriented Foreign Investment Development: Problems and Prospects and the Role of ADB —Seiji Naya, February 1984 —Kiyoshi Kojima, April 1982 No. 25 A Study on the External Debt Indicators No. 5 The Multilateral Development Banks Applying Logit Analysis and the International Economy’s Missing —Jungsoo Lee and Clarita Barretto, Public Sector February 1984 —John Lewis, June 1982 No. 26 Alternatives to Institutional Credit Programs No. 6 Notes on External Debt of DMCs in the Agricultural Sector of Low-Income —Evelyn Go, July 1982 Countries No. 7 Grant Element in Bank Loans —Jennifer Sour, March 1984 —Dal Hyun Kim, July 1982 No. 27 Economic Scene in Asia and Its Special Features No. 8 Shadow Exchange Rates and Standard —Kedar N. Kohli, November 1984 Conversion Factors in Project Evaluation No. 28 The Effect of Terms of Trade Changes on the —Peter Warr, September 1982 Balance of Payments and Real National No. 9 Small and Medium-Scale Manufacturing Income of Asian Developing Countries Establishments in ASEAN Countries: —Jungsoo Lee and Lutgarda Labios, January 1985 Perspectives and Policy Issues No. 29 Cause and Effect in the World Sugar Market: —Mathias Bruch and Ulrich Hiemenz, Some Empirical Findings 1951-1982 January 1983 —Yoshihiro Iwasaki, February 1985 No. 10 A Note on the Third Ministerial Meeting of GATT No. 30 Sources of Balance of Payments Problem —Jungsoo Lee, January 1983 in the 1970s: The Asian Experience No. 11 Macroeconomic Forecasts for the Republic —Pradumna Rana, February 1985 of China, Hong Kong, and Republic of Korea No. 31 India’s Manufactured Exports: An Analysis —J.M. Dowling, January 1983 of Supply Sectors No. 12 ASEAN: Economic Situation and Prospects —Ifzal Ali, February 1985 —Seiji Naya, March 1983 No. 32 Meeting Basic Human Needs in Asian No. 13 The Future Prospects for the Developing Developing Countries Countries of Asia —Jungsoo Lee and Emma Banaria, March 1985 —Seiji Naya, March 1983 No. 33 The Impact of Foreign Capital Inflow No. 14 Energy and Structural Change in the Asia- on Investment and Economic Growth Pacific Region, Summary of the Thirteenth in Developing Asia Pacific Trade and Development Conference —Evelyn Go, May 1985 —Seiji Naya, March 1983 No. 34 The Climate for Energy Development No. 15 A Survey of Empirical Studies on Demand in the Pacific and Asian Region: for Electricity with Special Emphasis on Price Priorities and Perspectives Elasticity of Demand —V.V. Desai, April 1986 —Wisarn Pupphavesa, June 1983 No. 35 Impact of Appreciation of the Yen on No. 16 Determinants of Paddy Production in Indonesia: Developing Member Countries of the Bank 1972-1981–A Simultaneous Equation Model —Jungsoo Lee, Pradumna Rana, and Ifzal Ali, Approach May 1986 —T.K. Jayaraman, June 1983 No. 36 Smuggling and Domestic Economic Policies No. 17 The Philippine Economy: Economic in Developing Countries Forecasts for 1983 and 1984 —A.H.M.N. Chowdhury, October 1986 —J.M. Dowling, E. Go, and C.N. Castillo, No. 37 Public Investment Criteria: Economic Internal June 1983 Rate of Return and Equalizing Discount Rate No. 18 Economic Forecast for Indonesia —Ifzal Ali, November 1986 —J.M. Dowling, H.Y. Kim, Y.K. Wang, No. 38 Review of the Theory of Neoclassical Political and C.N. Castillo, June 1983 Economy: An Application to Trade Policies No. 19 Relative External Debt Situation of Asian —M.G. Quibria, December 1986 Developing Countries: An Application No. 39 Factors Influencing the Choice of Location: of Ranking Method Local and Foreign Firms in the Philippines —Jungsoo Lee, June 1983 —E.M. Pernia and A.N. Herrin, February 1987 No. 20 New Evidence on Yields, Fertilizer Application, No. 40 A Demographic Perspective on Developing and Prices in Asian Rice Production Asia and Its Relevance to the Bank —William James and Teresita Ramirez, July 1983 —E.M. Pernia, May 1987 No. 21 Inflationary Effects of Exchange Rate No. 41 Emerging Issues in Asia and Social Cost Changes in Nine Asian LDCs Benefit Analysis —Pradumna B. Rana and J. Malcolm Dowling, —I. Ali, September 1988 Jr., December 1983

38 No. 42 Shifting Revealed Comparative Advantage: —Jungsoo Lee, September 1991 Experiences of Asian and Pacific Developing No. 56 A Framework for Justifying Bank-Assisted Countries Education Projects in Asia: A Review —P.B. Rana, November 1988 of the Socioeconomic Analysis No. 43 Agricultural Price Policy in Asia: and Identification of Areas of Improvement Issues and Areas of Reforms —Etienne Van De Walle, February 1992 —I. Ali, November 1988 No. 57 Medium-term Growth-Stabilization No. 44 Service Trade and Asian Developing Economies Relationship in Asian Developing Countries —M.G. Quibria, October 1989 and Some Policy Considerations No. 45 A Review of the Economic Analysis of Power —Yun-Hwan Kim, February 1993 Projects in Asia and Identification of Areas No. 58 Urbanization, Population Distribution, of Improvement and Economic Development in Asia —I. Ali, November 1989 —Ernesto M. Pernia, February 1993 No. 46 Growth Perspective and Challenges for Asia: No. 59 The Need for Fiscal Consolidation in Nepal: Areas for Policy Review and Research The Results of a Simulation —I. Ali, November 1989 —Filippo di Mauro and Ronald Antonio Butiong, No. 47 An Approach to Estimating the Poverty July 1993 Alleviation Impact of an Agricultural Project No. 60 A Computable General Equilibrium Model —I. Ali, January 1990 of Nepal No. 48 Economic Growth Performance of Indonesia, —Timothy Buehrer and Filippo di Mauro, the Philippines, and Thailand: October 1993 The Human Resource Dimension No. 61 The Role of Government in Export Expansion —E.M. Pernia, January 1990 in the Republic of Korea: A Revisit No. 49 Foreign Exchange and Fiscal Impact of a Project: —Yun-Hwan Kim, February 1994 A Methodological Framework for Estimation No. 62 Rural Reforms, Structural Change, —I. Ali, February 1990 and Agricultural Growth in No. 50 Public Investment Criteria: Financial the People’s Republic of China and Economic Internal Rates of Return —Bo Lin, August 1994 —I. Ali, April 1990 No. 63 Incentives and Regulation for Pollution Abatement No. 51 Evaluation of Water Supply Projects: with an Application to Waste Water Treatment An Economic Framework —Sudipto Mundle, U. Shankar, —Arlene M. Tadle, June 1990 and Shekhar Mehta, October 1995 No. 52 Interrelationship Between Shadow Prices, Project No. 64 Saving Transitions in Southeast Asia Investment, and Policy Reforms: —Frank Harrigan, February 1996 An Analytical Framework No. 65 Total Factor Productivity Growth in East Asia: —I. Ali, November 1990 A Critical Survey No. 53 Issues in Assessing the Impact of Project —Jesus Felipe, September 1997 and Sector Adjustment Lending No. 66 Foreign Direct Investment in Pakistan: —I. Ali, December 1990 Policy Issues and Operational Implications No. 54 Some Aspects of Urbanization —Ashfaque H. Khan and Yun-Hwan Kim, and the Environment in Southeast Asia July 1999 —Ernesto M. Pernia, January 1991 No. 67 Fiscal Policy, Income Distribution and Growth No. 55 Financial Sector and Economic —Sailesh K. Jha, November 1999 Development: A Survey

39 ECONOMIC STAFF PAPERS (ES)

No. 1 International Reserves: in Monsoon Asia Factors Determining Needs and Adequacy —Harry T. Oshima, October 1983 —Evelyn Go, May 1981 No. 21 The Significance of Off-Farm Employment No. 2 Domestic Savings in Selected Developing and Incomes in Post-War East Asian Growth Asian Countries —Harry T. Oshima, January 1984 —Basil Moore, assisted by No. 22 Income Distribution and Poverty in Selected A.H.M. Nuruddin Chowdhury, September 1981 Asian Countries No. 3 Changes in Consumption, Imports and Exports —John Malcolm Dowling, Jr., November 1984 of Oil Since 1973: A Preliminary Survey of No. 23 ASEAN Economies and ASEAN Economic the Developing Member Countries Cooperation of the Asian Development Bank —Narongchai Akrasanee, November 1984 —Dal Hyun Kim and Graham Abbott, No. 24 Economic Analysis of Power Projects September 1981 —Nitin Desai, January 1985 No. 4 By-Passed Areas, Regional Inequalities, No. 25 Exports and Economic Growth in the Asian Region and Development Policies in Selected —Pradumna Rana, February 1985 Southeast Asian Countries No. 26 Patterns of External Financing of DMCs —William James, October 1981 —E. Go, May 1985 No. 5 Asian Agriculture and Economic Development No. 27 Industrial Technology Development —William James, March 1982 the Republic of Korea No. 6 Inflation in Developing Member Countries: —S.Y. Lo, July 1985 An Analysis of Recent Trends No. 28 Risk Analysis and Project Selection: —A.H.M. Nuruddin Chowdhury and A Review of Practical Issues J. Malcolm Dowling, March 1982 —J.K. Johnson, August 1985 No. 7 Industrial Growth and Employment in No. 29 Rice in Indonesia: Price Policy and Comparative Developing Asian Countries: Issues and Advantage Perspectives for the Coming Decade —I. Ali, January 1986 —Ulrich Hiemenz, March 1982 No. 30 Effects of Foreign Capital Inflows No. 8 Petrodollar Recycling 1973-1980. on Developing Countries of Asia Part 1: Regional Adjustments and —Jungsoo Lee, Pradumna B. Rana, the World Economy and Yoshihiro Iwasaki, April 1986 —Burnham Campbell, April 1982 No. 31 Economic Analysis of the Environmental No. 9 Developing Asia: The Importance Impacts of Development Projects of Domestic Policies —John A. Dixon et al., EAPI, —Economics Office Staff under the direction East-West Center, August 1986 of Seiji Naya, May 1982 No. 32 Science and Technology for Development: No. 10 Financial Development and Household Role of the Bank Savings: Issues in Domestic Resource —Kedar N. Kohli and Ifzal Ali, November 1986 Mobilization in Asian Developing Countries No. 33 Satellite Remote Sensing in the Asian —Wan-Soon Kim, July 1982 and Pacific Region No. 11 Industrial Development: Role of Specialized —Mohan Sundara Rajan, December 1986 Financial Institutions No. 34 Changes in the Export Patterns of Asian and —Kedar N. Kohli, August 1982 Pacific Developing Countries: An Empirical No. 12 Petrodollar Recycling 1973-1980. Overview Part II: Debt Problems and an Evaluation —Pradumna B. Rana, January 1987 of Suggested Remedies No. 35 Agricultural Price Policy in Nepal —Burnham Campbell, September 1982 —Gerald C. Nelson, March 1987 No. 13 Credit Rationing, Rural Savings, and Financial No. 36 Implications of Falling Primary Commodity Policy in Developing Countries Prices for Agricultural Strategy in the Philippines —William James, September 1982 —Ifzal Ali, September 1987 No. 14 Small and Medium-Scale Manufacturing No. 37 Determining Irrigation Charges: A Framework Establishments in ASEAN Countries: —Prabhakar B. Ghate, October 1987 Perspectives and Policy Issues No. 38 The Role of Fertilizer Subsidies in Agricultural —Mathias Bruch and Ulrich Hiemenz, March 1983 Production: A Review of Select Issues No. 15 Income Distribution and Economic —M.G. Quibria, October 1987 Growth in Developing Asian Countries No. 39 Domestic Adjustment to External Shocks —J. Malcolm Dowling and David Soo, March 1983 in Developing Asia No. 16 Long-Run Debt-Servicing Capacity of —Jungsoo Lee, October 1987 Asian Developing Countries: An Application No. 40 Improving Domestic Resource Mobilization of Critical Interest Rate Approach through Financial Development: Indonesia —Jungsoo Lee, June 1983 —Philip Erquiaga, November 1987 No. 17 External Shocks, Energy Policy, No. 41 Recent Trends and Issues on Foreign Direct and Macroeconomic Performance of Asian Investment in Asian and Pacific Developing Developing Countries: A Policy Analysis Countries —William James, July 1983 —P.B. Rana, March 1988 No. 18 The Impact of the Current Exchange Rate No. 42 Manufactured Exports from the Philippines: System on Trade and Inflation of Selected A Sector Profile and an Agenda for Reform Developing Member Countries —I. Ali, September 1988 —Pradumna Rana, September 1983 No. 43 A Framework for Evaluating the Economic No. 19 Asian Agriculture in Transition: Key Policy Issues Benefits of Power Projects —William James, September 1983 —I. Ali, August 1989 No. 20 The Transition to an Industrial Economy No. 44 Promotion of Manufactured Exports in Pakistan

40 —Jungsoo Lee and Yoshihiro Iwasaki, No. 53 The Economic Benefits of Potable Water Supply September 1989 Projects to Households in Developing Countries No. 45 Education and Labor Markets in Indonesia: —Dale Whittington and Venkateswarlu Swarna, A Sector Survey January 1994 —Ernesto M. Pernia and David N. Wilson, No. 54 Growth Triangles: Conceptual Issues September 1989 and Operational Problems No. 46 Industrial Technology Capabilities —Min Tang and Myo Thant, February 1994 and Policies in Selected ADCs No. 55 The Emerging Global Trading Environment —Hiroshi Kakazu, June 1990 and Developing Asia No. 47 Designing Strategies and Policies —Arvind Panagariya, M.G. Quibria, for Managing Structural Change in Asia and Narhari Rao, July 1996 —Ifzal Ali, June 1990 No. 56 Aspects of Urban Water and Sanitation in No. 48 The Completion of the Single European Community the Context of Rapid Urbanization in Market in 1992: A Tentative Assessment of its Developing Asia Impact on Asian Developing Countries —Ernesto M. Pernia and Stella LF. Alabastro, —J.P. Verbiest and Min Tang, June 1991 September 1997 No. 49 Economic Analysis of Investment in Power Systems No. 57 Challenges for Asia’s Trade and Environment —Ifzal Ali, June 1991 —Douglas H. Brooks, January 1998 No. 50 External Finance and the Role of Multilateral No. 58 Economic Analysis of Health Sector Projects- Financial Institutions in South Asia: A Review of Issues, Methods, and Approaches Changing Patterns, Prospects, and Challenges —Ramesh Adhikari, Paul Gertler, and —Jungsoo Lee, November 1991 Anneli Lagman, March 1999 No. 51 The Gender and Poverty Nexus: Issues and No. 59 The Asian Crisis: An Alternate View Policies —Rajiv Kumar and Bibek Debroy, July 1999 —M.G. Quibria, November 1993 No. 60 Social Consequences of the Financial Crisis in No. 52 The Role of the State in Economic Development: Asia Theory, the East Asian Experience, —James C. Knowles, Ernesto M. Pernia, and and the Malaysian Case Mary Racelis, November 1999 —Jason Brown, December 1993

OCCASIONAL PAPERS (OP)

No. 1 Poverty in the People’s Republic of China: No. 12 Managing Development through Recent Developments and Scope Institution Building for Bank Assistance — Hilton L. Root, October 1995 —K.H. Moinuddin, November 1992 No. 13 Growth, Structural Change, and Optimal No. 2 The Eastern Islands of Indonesia: An Overview Poverty Interventions of Development Needs and Potential —Shiladitya Chatterjee, November 1995 —Brien K. Parkinson, January 1993 No. 14 Private Investment and Macroeconomic No. 3 Rural Institutional Finance in Bangladesh Environment in the South Pacific Island and Nepal: Review and Agenda for Reforms Countries: A Cross-Country Analysis —A.H.M.N. Chowdhury and Marcelia C. Garcia, —T.K. Jayaraman, October 1996 November 1993 No. 15 The Rural-Urban Transition in Viet Nam: No. 4 Fiscal Deficits and Current Account Imbalances Some Selected Issues of the South Pacific Countries: —Sudipto Mundle and Brian Van Arkadie, A Case Study of Vanuatu October 1997 —T.K. Jayaraman, December 1993 No. 16 A New Approach to Setting the Future No. 5 Reforms in the Transitional Economies of Asia Transport Agenda —Pradumna B. Rana, December 1993 —Roger Allport, Geoff Key, and Charles Melhuish No. 6 Environmental Challenges in the People’s Republic June 1998 of China and Scope for Bank Assistance No. 17 Adjustment and Distribution: —Elisabetta Capannelli and Omkar L. Shrestha, The Indian Experience December 1993 —Sudipto Mundle and V.B. Tulasidhar, June 1998 No. 7 Sustainable Development Environment No. 18 Tax Reforms in Viet Nam: A Selective Analysis and Poverty Nexus —Sudipto Mundle, December 1998 —K.F. Jalal, December 1993 No. 19 Surges and Volatility of Private Capital Flows to No. 8 Intermediate Services and Economic Asian Developing Countries: Implications Development: The Malaysian Example for Multilateral Development Banks —Sutanu Behuria and Rahul Khullar, May 1994 —Pradumna B. Rana, December 1998 No. 9 Interest Rate Deregulation: A Brief Survey No. 20 The Millennium Round and the Asian Economies: of the Policy Issues and the Asian Experience An Introduction —Carlos J. Glower, July 1994 —Dilip K. Das, October 1999 No. 10 Some Aspects of Land Administration No. 21 Occupational Segregation and the Gender in Indonesia: Implications for Bank Operations Earnings Gap —Sutanu Behuria, July 1994 —Joseph E. Zveglich, Jr. and Yana van der Meulen No. 11 Demographic and Socioeconomic Determinants Rodgers, December 1999 of Contraceptive Use among Urban Women in No. 22 Information Technology: Next Locomotive of the Melanesian Countries in the South Pacific: Growth? A Case Study of Port Vila Town in Vanuatu —Dilip K. Das, June 2000 —T.K. Jayaraman, February 1995

41 STATISTICAL REPORT SERIES (SR)

No. 1 Estimates of the Total External Debt of in Asian Developing Countries, 1985 the Developing Member Countries of ADB: —Jungsoo Lee and I.P. David, April 1987 1981-1983 No. 10 A Survey of the External Debt Situation —I.P. David, September 1984 in Asian Developing Countries, 1986 No. 2 Multivariate Statistical and Graphical —Jungsoo Lee and I.P. David, April 1988 Classification Techniques Applied No. 11 Changing Pattern of Financial Flows to Asian to the Problem of Grouping Countries and Pacific Developing Countries —I.P. David and D.S. Maligalig, March 1985 —Jungsoo Lee and I.P. David, March 1989 No. 3 Gross National Product (GNP) Measurement No. 12 The State of Agricultural Statistics in Issues in South Pacific Developing Member Southeast Asia Countries of ADB —I.P. David, March 1989 —S.G. Tiwari, September 1985 No. 13 A Survey of the External Debt Situation No. 4 Estimates of Comparable Savings in Selected in Asian and Pacific Developing Countries: DMCs 1987-1988 —Hananto Sigit, December 1985 —Jungsoo Lee and I.P. David, July 1989 No. 5 Keeping Sample Survey Design No. 14 A Survey of the External Debt Situation in and Analysis Simple Asian and Pacific Developing Countries: 1988-1989 —I.P. David, December 1985 —Jungsoo Lee, May 1990 No. 6 External Debt Situation in Asian No. 15 A Survey of the External Debt Situation Developing Countries in Asian and Pacific Developing Countries: 1989- —I.P. David and Jungsoo Lee, March 1986 1992 No. 7 Study of GNP Measurement Issues in the —Min Tang, June 1991 South Pacific Developing Member Countries. No. 16 Recent Trends and Prospects of External Debt Part I: Existing National Accounts Situation and Financial Flows to Asian of SPDMCs–Analysis of Methodology and Pacific Developing Countries and Application of SNA Concepts —Min Tang and Aludia Pardo, June 1992 —P. Hodgkinson, October 1986 No. 17 Purchasing Power Parity in Asian Developing No. 8 Study of GNP Measurement Issues in the South Countries: A Co-Integration Test Pacific Developing Member Countries. —Min Tang and Ronald Q. Butiong, April 1994 Part II: Factors Affecting Intercountry No. 18 Capital Flows to Asian and Pacific Developing Comparability of Per Capita GNP Countries: Recent Trends and Future Prospects —P. Hodgkinson, October 1986 —Min Tang and James Villafuerte, October 1995 No. 9 Survey of the External Debt Situation

SPECIAL STUDIES, OUP (SS,OUP) (Co-published with Oxford University Press; Available commercially through Oxford University Press Offices, Associated Companies, and Agents)

1. Informal Finance: Some Findings from Asia 9. Fiscal Management and Economic Reform Prabhu Ghate et. al., 1992 in the People’s Republic of China $15.00 (paperback) Christine P.W. Wong, Christopher Heady, 2. Mongolia: A Centrally Planned Economy and Wing T. Woo, 1995 in Transition $15.00 (paperback) Asian Development Bank, 1992 10. From Centrally Planned to Market Economies: $15.00 (paperback) The Asian Approach 3. Rural Poverty in Asia, Priority Issues and Policy Edited by Pradumna B. Rana and Naved Hamid, 1995 Options Vol. 1: Overview Edited by M.G. Quibria, 1994 $36.00 (hardbound) $25.00 (paperback) Vol. 2: People’s Republic of China and Mongolia 4. Growth Triangles in Asia: A New Approach $50.00 (hardbound) to Regional Economic Cooperation Vol. 3: Lao PDR, Myanmar, and Viet Nam Edited by Myo Thant, Min Tang, and Hiroshi Kakazu $50.00 (hardbound) 1st ed., 1994 $36.00 (hardbound) 11. Current Issues in Economic Development: Revised ed., 1998 $55.00 (hardbound) An Asian Perspective 5. Urban Poverty in Asia: A Survey of Critical Issues Edited by M.G. Quibria and J. Malcolm Dowling, 1996 Edited by Ernesto Pernia, 1994 $50.00 (hardbound) $18.00 (paperback) 12. The Bangladesh Economy in Transition 6. Critical Issues in Asian Development: Edited by M.G. Quibria, 1997 Theories, Experiences, and Policies $20.00 (hardbound) Edited by M.G. Quibria, 1995 13. The Global Trading System and Developing Asia $15.00 (paperback) Edited by Arvind Panagariya, M.G. Quibria, $36.00 (hardbound) and Narhari Rao, 1997 7. Financial Sector Development in Asia $55.00 (hardbound) Edited by Shahid N. Zahid, 1995 14. Social Sector Issues in Transitional Economies of Asia $50.00 (hardbound) Edited by Douglas H. Brooks and Myo Thant, 1998 8. Financial Sector Development in Asia: Country Studies $25.00 (paperback) Edited by Shahid N. Zahid, 1995 $55.00 (hardbound) $55.00 (hardbound)

42 SPECIAL STUDIES, COMPLIMENTARY (SSC) (Published in-house; Available through ADB Office of External Relations; Free of Charge)

1. Improving Domestic Resource Mobilization Through 19. The Role of Small and Medium-Scale Manufacturing Financial Development: Overview September 1985 Industries in Industrial Development: The Experience of 2. Improving Domestic Resource Mobilization Through Selected Asian Countries Financial Development: Bangladesh July 1986 January 1990 3. Improving Domestic Resource Mobilization Through 20. National Accounts of Vanuatu, 1983-1987 Financial Development: Sri Lanka April 1987 January 1990 4. Improving Domestic Resource Mobilization Through 21. National Accounts of Western Samoa, 1984-1986 Financial Development: India December 1987 February 1990 5. Financing Public Sector Development Expenditure 22. Human Resource Policy and Economic in Selected Countries: Overview January 1988 Development: Selected Country Studies 6. Study of Selected Industries: A Brief Report July 1990 April 1988 23. Export Finance: Some Asian Examples 7. Financing Public Sector Development Expenditure September 1990 in Selected Countries: Bangladesh June 1988 24. National Accounts of the Cook Islands, 1982-1986 8. Financing Public Sector Development Expenditure September 1990 in Selected Countries: India June 1988 25. Framework for the Economic and Financial Appraisal of 9. Financing Public Sector Development Expenditure Urban Development Sector Projects January 1994 in Selected Countries: Indonesia June 1988 26. Framework and Criteria for the Appraisal 10. Financing Public Sector Development Expenditure and Socioeconomic Justification of Education Projects in Selected Countries: Nepal June 1988 January 1994 11. Financing Public Sector Development Expenditure 27. Guidelines for the Economic Analysis of in Selected Countries: Pakistan June 1988 Telecommunications Projects 12. Financing Public Sector Development Expenditure Asian Development Bank, 1997 in Selected Countries: Philippines June 1988 28. Guidelines for the Economic Analysis of Water Supply Projects 13. Financing Public Sector Development Expenditure Asian Development Bank, 1998 in Selected Countries: Thailand June 1988 29. Investing in Asia 14. Towards Regional Cooperation in South Asia: Co-published with OECD, 1997 ADB/EWC Symposium on Regional Cooperation 30. The Future of Asia in the World Economy in South Asia February 1988 Co-published with OECD, 1998 15. Evaluating Rice Market Intervention Policies: 31. Financial Liberalisation in Asia: Analysis and Prospects Some Asian Examples April 1988 Co-published with OECD, 1999 16. Improving Domestic Resource Mobilization Through 32. Sustainable Recovery in Asia: Mobilizing Resources for Financial Development: Nepal November 1988 Development 17. Foreign Trade Barriers and Export Growth Co-published with OECD, 2000 September 1988 33. Technology and Poverty Reduction in Asia and the Pacific 18. The Role of Small and Medium-Scale Industries in the Co-published with OECD, 2001 Industrial Development of the Philippines 34. Asia and Europe April 1989 Co-published with OECD, 2002

SPECIAL STUDIES, ADB (SS, ADB) (Published in-house; Available commercially through ADB Office of External Relations)

1. Rural Poverty in Developing Asia 5. Emerging Asia: Changes and Challenges Edited by M.G. Quibria Asian Development Bank, 1997 Vol. 1: Bangladesh, India, and Sri Lanka, 1994 $30.00 (paperback) $35.00 (paperback) 6. Asian Exports Vol. 2: Indonesia, Republic of Korea, Philippines, Edited by Dilip Das, 1999 and Thailand, 1996 $35.00 (paperback) $35.00 (paperback) $55.00 (hardbound) 2. Gender Indicators of Developing Asian 7. Development of Environment Statistics in Developing and Pacific Countries Asian and Pacific Countries Asian Development Bank, 1993 Asian Development Bank, 1999 $25.00 (paperback) $30.00 (paperback) 3. External Shocks and Policy Adjustments: 8. Mortgage-Backed Securities Markets in Asia Lessons from the Gulf Crisis Edited by S.Ghon Rhee & Yutaka Shimomoto, 1999 Edited by Naved Hamid and Shahid N. Zahid, 1995 $35.00 (paperback) $15.00 (paperback) 9. Rising to the Challenge in Asia: A Study of Financial 4. Indonesia-Malaysia-Thailand Growth Triangle: Markets Theory to Practice Asian Development Bank Edited by Myo Thant and Min Tang, 1996 Vol. 1: An Overview, 2000 $20.00 (paperback) $15.00 (paperback)

43 Vol. 2: Special Issues, 1999 $15.00 (paperback) 13. Intergovernmental Fiscal Transfers in Asia: Current Practice Vol 3: Sound Practices, 2000 $25.00 (paperback) and Challenges for the Future Vol. 4: People’s Republic of China, 1999 $20.00 Edited by Paul Smoke and Yun-Hwan Kim, 2002 (paperback) $15.00 (paperback) Vol. 5: India, 1999 $30.00 (paperback) 14. Guidelines for the Economic Analysis of Projects Vol. 6: Indonesia, 1999 $30.00 (paperback) Asian Development Bank, 1997 Vol. 7: Republic of Korea, 1999 $30.00 (paperback) $10.00 (paperback) Vol. 8: Malaysia, 1999 $20.00 (paperback) 15. Handbook for the Economic Analysis of Water Supply Projects Vol. 9: Pakistan, 1999 $30.00 (paperback) Asian Development Bank, 1999 Vol. 10: Philippines, 1999 $30.00 (paperback) $10.00 (hardbound) Vol. 11: Thailand, 1999 $30.00 (paperback) 16. Handbook for the Economic Analysis of Health Sector Projects Vol. 12: Socialist Republic of Viet Nam, 1999 $30.00 Asian Development Bank, 2000 (paperback) $10.00 (paperback) 10. Corporate Governance and Finance in East Asia: 17. Handbook for Integrating Risk Analysis in the Economic A Study of Indonesia, Republic of Korea, Malaysia, Analysis of Projects Philippines and Thailand Asian Development Bank, 2002 J. Zhuang, David Edwards, D. Webb, $10.00 (paperback) & Ma. Virginita Capulong 18. Handbook for Integrating Povery Impact Assessment in Vol. 1: A Consolidated Report, 2000 $10.00 (paperback) the Economic Analysis of Projects Vol. 2: Country Studies, 2001 $15.00 (paperback) Asian Development Bank, 2001 11. Financial Management and Governance Issues $10.00 (paperback) Asian Development Bank, 2000 19. Guidelines for the Financial Governance and Cambodia $10.00 (paperback) Management of Investment Projects Financed by the People’s Republic of China $10.00 (paperback) Asian Development Bank Mongolia $10.00 (paperback) Asian Development Bank, 2002 Pakistan $10.00 (paperback) $10.00 (paperback) Papua New Guinea $10.00 (paperback) 20. Handbook on Environment Statistics Uzbekistan $10.00 (paperback) Asian Development Bank, 2002, Forthcoming Viet Nam $10.00 (paperback) 21. Economic Analysis of Policy-based Operations: Key Selected Developing Member Countries $10.00 (paperback) Dimensions 12. Government Bond Market Development in Asia Asian Development Bank, 2003 Edited by Yun-Hwan Kim, 2001 $25.00 (paperback)