\R I DA-1l\Tl 20081 Public Disclosure Authorized A, Public Disclosure Authorized .~~~~~~~~~~~~~~~~9. .;; . , ~ -m Public Disclosure Authorized Public Disclosure Authorized WORLDBANK World Bank 1818 H Street, N.W. Washington, D.C. 20433 Cover: Construction of schools forms an important component of a $19 million IDA credit to Sri Lanka for the development of irrigated agriculture through diversion of the waters of the country's major river, the Mahaweli Ganga. This photo shows a teacher and part of her class in one of the schools built for the Mahaweli Ganga scheme's colonists. Frontispiece: A worker seen through a cylinder Photo Credits designed for an oil refinery and manufactured by Cover: Ray Witlin Bharat Heavy Electricals, Ltd. of Hyderabad, Frontispiece: Ray Witlin India. A $40 million Bank loan, channeled Page 27: James Pickerell through the Industrial Development Bank of India Page 36: Ray Witlin through.theDevelopment industrial Bank of India Page 41: Peter Muncie to state financial corporations provided the Page 47: Mary M. Hill foreign exchange needed by small and medium- Page 55: William Graham sized industries for the purchase of imported Page 61: Jaime Martin-Escobal capital goods. Page 73: Ray Witlin 3 The World Bank The World Bank is a group of three of the World Bank, and 121 of them have joined institutions, the International Bank for to date. The funds used by IDA, called credits Reconstruction and Development (IBRD), to distinguish them from Bank loans, come the International Development Association mostly in the form of subscriptions, general (IDA), and the International Finance replenishments from IDA's more industrialized Corporation (IFC). and developed members, special contributions The common objective of these institutions by IDA's richer members, and transfers from is to help raise standards of living in devel- the net earnings of the World Bank. The terms oping countries by channeling financial of IDA credits, which are made to governments resources from developed countries to the only, are 10-year grace periods, 50-year developing world. maturities, and no interest. An annual service The World Bank, established in 1945, is fee of 0.75% is charged on the disbursed owned by the governments of 135 countries, portion of each credit. Although legally and The Bank, whose capital is subscribed by its financially distinct from the Bank, IDA is member countries, finances its lending administered by the same staff. operations primarily from its own borrowings The IFC was established in 1956. Its function in the world capital markets. A substantial is to assist the economic development of less contribution to the Bank's resources also comes developed countries by promoting growth in from its retained earnings and the flow of the private sector of their economies and helping repayments on its loans. Bank loans generally to mobilize domestic and foreign capital for have a grace period of five years and are this purpose. Membership in the Bank is a repayable over 20 years or less. They are prerequisite for membership in the IFC, which directed toward developing countries at more totals 113 countries. Legally and financially, the advanced stages of economic and social growth. IFC and the Bank are separate entities. The The interest rate the Bank charges on its loans Corporation has its own operating and legal is calculated in accordance with a guideline staff, but draws upon the Bank for administrative related to its cost of borrowing. and other services. The Bank's charter spells out certain basic While the World Bank has traditionally rules that govern its operations. It must lend financed all kinds of capital infrastructure, only for productive purposes and must such as roads and railways, telecommunications, stimulate economic growth in the developing and ports and power facilities, its present countries where it lends. It must pay due regard developmental strategy places a greatly to the prospects of repayment. Each loan is increased emphasis on investments that can made to a government or must be guaranteed directly affect the well-being of the masses of by the government concerned. The use of loans poor people of developing countries by making cannot be restricted to purchases in any them more productive and by integrating them particular member country. And the Bank's as active partners in the development process. decisions to lend must be based only on This strategy is increasingly evident in the economic considerations. agriculture and rural development projects The International Development Association that the Bank and IDA help finance. It is also was established in 1960 to provide assistance evident in projects for education and family for the same purposes as the Bank, but primarily planning and nutrition, and in the Bank's in the poorer developing countries and on terms concern for the urban poor, who benefit from that would bear less heavily on their balance of projects designed to develop water and sewerage payments than Bank loans. IDA's assistance facilities, as well as "core" low-cost housing, and is, therefore, concentrated on the very poor to increase the productivity of small industries. countries-mainly those with an annual per At the same time, lending for traditional capita gross national product of less than projects continues, but it is being redirected $625 (in 1978 dollars). More than 50 countries towards becoming more responsive to the new are eligible under this criterion. strategy of deliberately focusing on the poorest Membership in IDA is open to all members segments of society in the developing countries. 4 Table of Contents The World Bank 3 The Executive Directors and Alternates 7 The Record for Ten Years-1971-1980 8 Chapter One: The World Bank, Fiscal 1980, in Brief 9 Chapter Two: 1971-1980-A Global Perspective 15 Chapter Three: 1971-1980-Regional Perspectives Eastern Africa 25 Western Africa 32 East Asia and Pacific 39 South Asia 45 Europe, Middle East, and North Africa 52 Latin America and the Caribbean 59 Chapter Four: Bank Policies and Activities, Fiscal 1980 Bank Policies Structural Adjustment Lending 67 Co-financing 68 Currency Pooling 70 Health 71 Education 71 Bank Activities Economic Development Institute 74 Technical Assistance 75 Interorganizational Cooperation 77 Economic Research and Studies 80 Operations Evaluation 81 Internal Auditing 83 Chapter Five: Borrowings and Finance 84 Contents 5 Chapter Six: Executive Directors Executive Directors 95 Joint Audit Committee 96 Projects Approved for Bank and IDA Assistance in Fiscal 1980, by Sector 97 Projects Approved for Bank and IDA Assistance in Fiscal 1980, by Region 119 Projects Approved for Bank and IDA Assistance in F'iscal 1980, by Purpose 121 Statistical Annex Index 127 General Notes to Annex Tables 128 Tables 1-10 130 Bank Appendices Index 149 Financial Statements 150 IDA Appendices Index 165 Financial Statements 166 Bank/IDA Appendices Index 179 Appendix 1: Bank and IDA Cumulative Lending Operations, by Major Purpose and Region, June 30, 1980 180 Appendix 2: Bank and IDA Cumulative Lending Operations, by Country, June 30, 1980 182 Appendix 3: Statement of Loans Approved during Fiscal Year 1980 185 Appendix 4: Statement of Development Credits Approved during Fiscal Year 1980 190 Appendix 5: Administrative Budgets of the Bank and IDA 194 Appendix 6: Governors and Alternates of the Bank and IDA 195 Appendix 7: Executive Directors and Alternates of the Bank and IDA 197 Appendix 8: Officers and Department Directors of the Bank and IDA 198 Appendix 9: World Bank Offices 199 181 tvw,XI I Illia t A Iff ImA, C, I I ,V 7 The Executive Directors and Alternates Executive Directors Alternates John Anson Derek F. Smith Moncef Belkhodja Omar Kabbaj Jacques de Groote Herbert Sutter Earl G. Drake Reno J. Brown Said E. El-Naggar Saleh A. Al-Hegelan J. W. Keany Sang-Chul Suh Colbert I. King David S. King Eberhard Kurth Hans-Dieter Hanfland Anthony IJ. A. Looijen Miodrag M. Stojiljkovic Hans Lundstr6m Valgeir Arsaelsson Austin H. Madinga Y. S. M. Abdulai Placido L. Mapa, Jr. Guillermo Constain Eduardo Mayobre Roberto Mayorga-Cortes Paul Mentr6 de Loye Marthe Parent Seiji Morioka Kimiaki Nakajima M. Narasimham M. Syeduz-Zaman Armand Razafindrab6 Nicephore Soglo Giorgio Rota Rodrigo M. Guimaraes Alberto Sola David Blanco Zain Azraai Aung Pe The Executive Directors of the The Directors express their International Bank for appreciation to the more than 5,000 Reconstruction and Development men and women staff members of and the International Development the Bank for their dedication to the Association have had prepared this institution's ideals. They note that the Annual Report for the fiscal year continued professionalism of the staff July 1, 1979 to June 30, 1980 in has made it possible for the Bank to accordance with the By-Laws of the increase its operations without two organizations. Robert S. decreasing the attention paid to McNamara, President of the Bank economic analysis and project and the Association and Chairman appraisal, supervision, and evaluation. of the Boards of Executive Directors, has submitted this The Annual Reports of the Report, together with accompanying International Finance Corporation administrative budgets and audited and the International Centre for financial statements, to the Boards Settlement of Investment Disputes of Governors. are published separately. June 30, 1980 8 The Record for Ten Years-1971-80 Fiscalyear 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 World Bank US$millions Loanamounts