Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Most Rapidly Growing Part of the World

he Word Ba k's Role in East Asia

by S. Shahid Husain Vice President, East Asia and Pacific

For nearly two decades, East Asia has been the most rapidly grow­

ing part of the world. There has been impressive progress

in human and social development and in the participation of a large segment of the population in the ben­efits of economic growth. Job oppor­tunities have expanded, food avail­ability and nutritional standards have improved, life expectancy has in­creased and educational opportunities have multiplied.

This progress has been the result of the determination, organization and management of the countries themselves. External lenders, includ­ing The World Bank, have also made an important contribution.

East Asian countries are now at an important crossroads. They need to adapt to a difficult economic environ­ment by a more efficient use of re­sources, further mobilizing their do­mestic resources and reducing their dependence on imported energy. In mobilizing external resources for the future, the East Asian countries will need to continue to rely heavily on private funds. The Bank's role will increasingly be one of stimulating de­velopment and change and facilitat­ing the mobilization of other external funds.

The five major World Bank bor­rowers in the region-Indonesia, Ko­rea, Malaysia, the Philippines and Thailand-have registered not only impressive growth in gross national

product (GNP) per capita but also substantial success in structural transformation of their economies, human resource development and in­stitutional development. These coun­tries have also reduced malnutrition and poverty.

GNP per capita in Korea ex­panded at an average annual rate of 7% during 1960-79; growth rates were broadly similar in Singapore and Hong Kong, being among the highest for developing countries. During the same period, Thailand, Malaysia and Indonesia showed per capita GNP growth of 4% or more per year. Among the developing economies with a population of more than 10 million, only Yugoslavia, Brazil, Spain and oil-exporting Iraq exceeded their performance.

Structural change, measured by a rise in the share of industry, has also been quite rapid. Manufacturing al­ready exceeds agriculture in Korea and the Philippines, and, if present trends continue, will do so in Thai­land and Malaysia by 1990.

Agricultural development has also been uniformly outstanding. In the five countries, the average annual ag­ricultural growth has been well above 4% a year during the 1970s. Malay­sia and Thailand have nearly trebled their agricultural output over the last two decades. ~heir success in agricul­ture and food supply has not received due attention; but few large countries have matched this record. For exam-

pie, it took Japan 40 years, between 1880-1919, to double its agricultural output-an annual growth of 2.5%.

Ra pid growth of foreign trade has been another key element in struc­tural change. In all the large market economies of East Asia, the ratio of exports to gross domestic product (GDP) has risen significantly, most dramatically in Korea. Growth of la­bor-intensive manufacturing exports has been important in creating jobs and earning foreign exchange at a low cost. These economies are now more open than either an average middle-income country or a typical industrial market economy.

In the last 20 years, Korea achieved the most dramatic decline in poverty. There has also been sig­nificant reduction in Thailand and Malaysia. Life expectancy levels have risen faster in East Asian coun­tries, particularly in Malaysia and Korea, than in other comparable countries, except Yugoslavia.

This rather good record of eco­nomic and social progress can be at­tributed to a number of factors. Among them are: a generally strong commitment to development, a mas­sive increase in savings and invest­ment, high priority to agriculture and export, rapid expansion of world trade and capital flows, and pragma­tic economic management and sound economic policies. These have worked in varying degrees in individual coun­tries, and consequently, there have

COVER: Clockwise from top left, Wolfgang Siebeck, Andrew Hayman, Janet de Merode and Mahmood Ayub-four Bank Resident Representatives. Photos by Y. Hadar and G. Franchini

THE BANK'S WORLD/OCTOBER 1982 2

S. Shahid Husain meets with Zhao Zhiyang, Prime Minister of the People's Republic of China, in the Great Hall of the People in Beijing. Interpreters are in the rear.

been significant differences among them in the efficiency of resources, growth of per capita consumption, and distribution of benefits of growth. But with this diversity, all have more in common among them­selves in the succesS of their eco­nomic management than with most other developing countries.

Notwithstanding their record of export growth, major East Asian bor­rowers of the Bank now face current account deficits ranging from 6% to 8% of GNP in the balance of pay­ments.

Many factors have contributed to the present difficulties. For the major oil importers, mainly Korea, Thai­land and the Philippines, the further doubling of oil prices between 1978 and 1980, the high interest rates on international lending and the stagna­tion of the international economy are of immediate concern. Thailand, the Philippines, Indonesia and Malaysia have been hard hit by the sharp re­duction in commodity prices during

the last two years. These deficits cannot be sustained

and should be narrowed. All these countries need structural

adjustment to reduce the current ac­count deficits to 3%-4% of GNP by the mid to late 1980s, thereby pres­erving creditworthiness and keeping external debt-service within mana­geable limits. Equally important, ad­justment programs can pr~vent dis­ruption of economic development, so essential for creating employment op­portunities and alleviating poverty.

Nevertheless, the developing mar­ket economies of East Asia are, in many ways, in a strong position to face the period of adjustment. They have entered the 1980s with a con­siderable economic momentum. Sub­stantial adjustment has taken place in these economies, and manufac­tured exports have already emerged in all countries except Indonesia. Ag­ricultural growth has been strong, and sizable agricultural investments of the past decade will help to sus­

tain the trend. Notwithstanding the large current account deficits during the 1970s, the burden of external debt is not unduly large.

The burden of sustaining develop­ment while reducing balance of pay­ments deficits and ensuring progress in reducing poverty will fall mainly on economic management and poli­cies. Increased efficiency in the use of economic resources, especially in­vestments and energy, will be central to the effort. The continued emphasis through appropriate policies on la­bor-intensive manufactured exports can help maintain or reduce invest­ment costs or output while contribut­ing significantly to balance of pay­ments and employment. Import sub­stitution in energy is of high priority, and the size and share of energy in­vestments will have to grow.

The World Bank has been an ac­tive and important partner in devel­opment in the major East Asian mar­ket economies. Bank lending to these countries has expanded nearly ten­

..t •

THE BANK'S WORLD/OCTOBER 1982 3

· l'

fold over the last decade, from $280 million in FY72 to $2.6 billion in FY82, representing more than a fourfold increase in real terms.

Even so, the Bank's contribution to net inflow of external medium- and long-run loans into Indonesia, Korea, Malaysia, the Philippines and Thai­land has been relatively modest, ranging from 10% to 15% during 1977-81. Relying on their generally strong creditworthiness, these coun­tries have met the bulk of their ex­ternal borrowing requirements from private sources.

The Bank's catalytic role in mobil­izing private and public inflows has, however, been important. Its periodic assessments of the economic trends and prospects in countries provide the principal documentation for the aid coordination groups the Bank normally chairs. The conclusions of aid coordination groups, in turn, serve as important guidelines for the international banking community.

Recognizing that the problem of poverty is largely a rural one, the Bank has sharply increased lending for agriculture and rural development in East Asia.

Agricultural lending, in real terms, almost doubled between fiscal years 1972-76 and 1977-81 and its share in the total lending increased from 26% to 33%. Bank-financed agricul­tural projects in the region initiated during the last decade will, when completed, benefit more than five million families. Of the agricultural projects financed during fiscal years 1977-81, more than 85% of the ben­eficiaries were estimated to be below the poverty line.

But, of course, the Bank's role es­pecially in East Asia is much broader than the mere transfer of financial resources. Through its project and sector lending and economic dia­logue, the Bank seeks to stimulate growth, structural change, poverty alleviation and the building of strong development institutions. The in­creasing concern of the development community with the broad institu­tional and policy environment for

4 THE BANK'S WORLD/OCTOBER 1982

economic development is being ad­dressed through structural adjust­ment lending as well. This comple­ments the Bank's normal financial and institutional contribution to spe­cific projects and sectors.

Now including the economic work on China, the East Asia Regional Office devotes nearly 60 staff years to examining key economic and sectoral issues in member countries. The work includes reports on a country's over­all economic situation and prospects, as well as special economic and sec­tor studies on a whole range of sub­jects such as poverty, employment, income distribution, agriculture, en­ergy, manufacturing and the financial sector. Structural adjustment lending has further increased the importance of our economic and sector work.

'The major part of future Bank lending in East Asia will continue to take the form of project and sector lending.'

The Bank has already made the first round of structural adjustment loans aggregating $600 million to the three large energy deficit countries in the region particularly hard hit by the 1979-80 oil price increase and subsequent slowdown in international economic activity. These loans sup­port adjustment measures in the Philippines, Korea and Thailand ranging from industrial reform to specific energy conservation pro­grams.

We hope to continue our structural adjustment lending at least over the medium term of three to five years. The focus will remain on improving efficiency in the use of economic re­

sources, especially of investment and energy resources through appropriate policy improvements.

The major part of future Bank lending in East Asia will continue to take the form of project and sector lending. Since the Bank's own finan­cial resources are limited and since the countries in the region have sub­stantial access to private sources, the Bank's role will be one of stimulating change and development and helping countries to mobilize private and public funds.

There will inevitably be a closer look at priorities and greater scrutiny of projects. Energy and human re­source development will be stressed. Agriculture will remain the largest single area of emphasis although there may be some reduction in its share.

As an institution, the Bank faces the challenge of maximizing its de­velopment impact per project and per dollar loaned; the development issues facing the countries will continue to have many facets and so will those facing the Bank.

A discussion of The World Bank's role in East Asia is not complete without some mention of our work on China. It is little more than two years since the People's Republic of China assumed China's representa­tion in the Bank. The Bank's re­sponse was quick. A nine-volume China economic report was com­pleted on schedule, in June 1981. The report, which analyzed the ma­jor development constraints and pros­pects for the 1980s, was well re­ceived, and may help the government in preparing the present five-year plan. Its findings have provided an important basis for Bank evaluation of China's development needs and creditworthiness. Meanwhile, Bank lending to China has been initiated. A first education project totaling $200 million ($100 million from IBRD and $100 million from IDA) has been approved. Preparatory work is continuing on a number of projects especially in energy, industry and transport. II

Res Reps Come 'Home' for Meetings

The ·Bank's Emis·saries by Thierry Sagnier

The Bank's and IFC's far-flung emissaries, the Resident Repre­

sentatives, came "home" last month for departmental discussions with Headquarters staff and to attend a number of meetings designed to keep them aware of the institution's latest decisions and policies.

In a series of sessions, the first of which Bank President A. W. Clausen opened, the Representatives heard Senior Vice President, Operations, Ernest Stern give an overview of the Bank's operations in a changing world climate, Vice President, Exter-

Bolivia

Working in the rarefied air of La Paz, Bolivia, some 12,000 feet above sea level, is not for everybody. "Some people can't stand the altitude," says Mahmood A. Ayub, the Bank's Resi­dent Representative in that country. "I've greeted arriving missions, only to have to send back a mission mem­ber who could not adapt. I was born and raised in the higher regions of Pakistan, so the elevation doesn't bother me in the least. Personally, I love it there."

Mr. Ayub has been working for the Bank since 1976, and he moved to the Resident Mission in Bolivia in May 1981. He was recently at Head­quarters to participate in the heads of field offices meeting.

"Being a Resident Representative has tremendous advantages and many responsibilities," he says. "You're a spokesman for the Bank, and you stand or fall by the decisions you make. Sometimes these decisions are controversial, but there are situa­tions that have to be dealt with in our work. It's quite a challenge.

nal Relations, Munir Benjenk address the issue of the changing political/ economic environment for the Bank, and Vice President, Personnel and Administration, Martijn Paijmans speak about changes in personnel and administration.

The Representatives, who came from four continents, also had the opportunity to discuss improving medical services in the field with Dr. Andre Lebrun, Director of the Medi­cal Department.

Other sessions, all concerned with field operations, dealt with the re­

"But," he adds, "a Resident Mis­sion is also fairly isolated. There's not the same give-and-take that is found at Headquarters. The danger, of course, is that you can stay too long and get out of touch with cer­tain developments. I end up missing the contacts I was used to having with my colleagues, and not having the interchange of ideas."

There is a lot of traveling involved in his job, says Mr. Ayub--"Bolivia is a large country, and I make it a point to visit the projects"-as well as a number of meetings he must at­tend. "I'll meet with the Minister of Finance, as well as with the Presi­dent of the Central Bank. And then there are frequent meetings to deal with technical issues, projections for balance of payments, tariffs, public investment... "

In spite of the meetings and travel, Mr. Ayub says, there is still somehow "more time for the family than I had when working in Head­quarters, though in terms of hours spent on the job, it's the same, or more."

Would he accept another Resident Mission post? "In a minute."

cently conducted Attitude Survey, improvements in support services, plans for expanding and structuring legal services, and compensation and personnel development issues under review.

Twenty-four Resident Representa­tives, as well as members of the Eu­ropean and Tokyo offices, attended the eight sessions, which were con­cluded by an open meeting where the heads of field offices offered their views on various matters related to field work. E

Pakistan In a few months Wolfgang Siebeck will be returning from a three-year assignment as Resident Representa­tive in Islamabad, Pakistan. "At this point," he says, "I should work here at Headquarters a few years, hope­fully in the same region, so I can put the Pakistan experience to good use."

The time in Pakistan, he feels, has been well spent. "I pioneered the re­cruitment of local professionals," he says, "and they've been doing a lot of work that used to be done by Head­quarters, such as helping prepare sec­tor papers and working with eco­nomic missions in the field. Also, hiring local people gives you a totally different insight into the problems of a country. Through them, you begin to understand local constraints."

A Resident Representative and the mission staff, he believes, "playa critical role in helping the Bank cre­ate a feasible project. That's what's attractive about being here. You deal with people on the other side, on a day-to-day basis, and understand

THE BANK'S WORLD/OCTOBER 1982 5

l ~

much better what they see, how they view progress.

"Problems are fairly obvious to you when you're here," he adds. "This is important when the time comes to help a government in prepa­ration of a project, to bring the gov­ernment and the Bank closer on what is a feasible project. The key word here is 'feasible.' The ideal project is very often different from the project that is feasible, in light of social, cul­tural or managerial contexts."

The Bank, he thinks, offers many advantages to its Representatives, "and for many people, this may make this assignment more attrac­tive," but he warns prospective res reps to "be careful of the problems you choose to solve. The terms of ref­erence are unlimited, and you set them as you want, which is both ad­vantageous and perplexing. A res rep is sort of a jack-of-all-trades, and the first thing you realize is that every­thing you find in a field office needs your help. You simply won't have the time to solve all the problems."

Mali "One of the first questions people ask when you come on as a res rep in Af­rica is, 'what's your living experience here?' " says Janet de Merode, re­cently appointed Resident Represen­tative to Mali. "You need the credi­bility of living experience for the borrower. That aspect is very important."

Mrs. de Merode has now been in Mali seven months, and, she says, she underestimated the tremendous range of demands made upon her of­fice. "One day I'm talking to a min­ister, the next day I'm discussing a loan, the day after that I'm dealing with someone who tells me he's com­ing down with malaria. A res rep in a small mission such as the one in Bamako--we have a staff of five-is a little bit of everything: diplomat, priest, counselor, mother confessor. And then, of course, the government expects a lot from you.

"I'll give you an example. The

THE BANK'S WORLD/OCTOBER 1982

Malians call me their ambassador to the Bank, when in fact what I really am is the Bank's representative to them. What it comes down to is that you're everybody's troubleshooter, and that's a very delicate role to play."

Mali is classified as one of the Bank's 10 poorest borrowers with "projects all over the map," accord­ing to Mrs. de Merode. "There are seven million people in an area roughly twice the size of Texas (Mrs. de Merode's home state) and the per capita income is $190. The Bank started with heavy infrastructure projects and is now involved in both the agricultural and social sectors. So I travel a lot, and expect in the fu­ture to travel even more."

And then, she says, there are the social functions, "a big part of our activities here. I get at least three of­ficial invitations a week. The Bank has to playa role in the diplomatic corps in Bamako."

There are frustrations, she admits, "Nobody seems to know where Mali is. My mail goes to Bali, and then to Malawi." And there are fears. "My only real concern is medical safety; there are only two flights a week out of Bamako."

But all in all, she believes, the as­signment is a valuable one. "I was getting frustrated with the six-month visits, and I needed the day-to-day experience of working on develop­ment projects in a developing coun­try. Sometimes I feel isolated, but the Malians are delightful. They're tremendous to work with. That's the major reward of the job."

Somalia "Before I became the Resident Rep­resentative in Somalia," recalls An­drew Hayman, "I looked up some Bank staff who had been res reps. They all told me the Resident Repre­sentative job is the most satisfying work in the Bank. They were right; it is."

The Somalis, he finds, are

"fiercely independent and nomadic. Any visitor who's been there is struck by their charm. They're frank and approachable." But, he adds quickly, life in Mogadishu, site of the Bank's Resident Mission in Somalia, is far from being paradise. "Day-to-day liv­ing is not so bad, but day-to-day problems can be hard to solve. On the one hand, I'm a mail drop and a ticket confirmation clerk; on the other hand, I represent the Bank at its highest level. One of my most im­portant responsibilities is ensuring the safety of the people I work with. I've had to handle two medical emergencies since I've arrived, and both involved chartering airplanes. Emergencies of that type are what frighten me the most."

Mr. Hayman has been in Somalia seven months, and one of the first things he realized, he says, was how isolated Mogadishu was. "I had the advantage of having visited Somalia before, so I knew the country. But the community itself is so removed from other urban centers that it has become very good at improvising. You quickly learn how to do without things you take for granted else­where, and you develop a camarade­rie."

The greatest challenge he faced, he says, was relocating to a new envi­ronment. "It's very taxing. Neither my wife nor I understood the enor­mous labor involved. There was also the fact that we're a two-career fam­ily. My wife didn't really want to give up her work.

"Well, she's very enterprising, and found work as the assistant producer of a film being made in Somalia, which was fortuitous."

Of the heads of field offices ses­sions he attended, Mr. Hayman says: "I'm the new boy here, running one of the smaller offices. There was an instant rapport with the other Repre­sentatives (at the meeting); we're all volunteers, fighting the same battles, facing the same problems. I think the need for such meetings was unani­mously recognized. I hope they be­come annual events." II

6

3 Executive Directors Discuss Their Experiences at the Bank

your experience as an Executil'e Di­rector?

'You get a very particular view of the Bank as an EO. 1

Drake: I think you get a very par­ticular view of the Bank as an Exec­utive Director. It's a marvelous insti­tution to be associated with, but the perspective that an Executive Direc­tor has is a somewhat limited and frustrating one.

My relationship with the Carib­bean Department-in the role I had as a representative of the Carib­bean- was a very satisfying one be­cause it involved dealing with tangi­ble questions. You deal with projects in the country. You can see results. But the Board relationship is much less tangible. You deal with general policies, but often at a rather late stage. You put on your stamp of ap­proval, but I didn't feel that I always had an input as early as I would've liked on influencing policy.

Abdulai: When I first came here as a technical assistant, I got to know certain things about the Bank which you will not know if you come in as an Executive Director. Because at that (lower) level, staff members

-Drake

Photos by Michele lannacci .:t

THE BANK'S WORLD/OCTOBER 1982 7

A View rom

theTop

T hree Executive Directors who said goodbye to The World Bank

this month took some time recently to discuss their experiences here and to give their views on the Bank, its staff and future issues facing the organization.

The three are Y. Seyyid Abdulai of Nigeria, who also represents 19 other countries, mainly in Africa; Anthony IJ. A. Looijen of The Neth­erlands, who also represents Cyprus, Israel, Romania and Yugoslavia; and Earl G. Drake of Canada, who also represents seven Caribbean countries and Ireland.

Mr. Abdulai is the most senior of the trio in terms of years spent at The World Bank. He has been here 11 years, starting as a technical as­sistant, and in 1980 becoming an ED. Mr. Drake spent seven years in Washington and Mr. Looijen six with the Bank.

Question: How would you describe

consider you almost as one of them, they tell you certain things which they wouldn't tell you if they knew that you were an Executive Director. In my case, when I became a Board member, I was frustrated quite often because I could identify more with what the staff was saying than I be­lieve my colleagues could.

When you come from a developing country, your Governors bring to you the kind of discussion they've had with staff members-whether they agree, whether they disagree, whether they think the staff is not doing the right thing, or they are not being cooperative, or just cannot un­derstand. So when you come to the Board, even though you have not participated as a staff member would in the preparation of projects, you are able to see things differently from the way your colleagues from developed countries see them.

In that sense, I think that Mr. Drake's experience with the Carib­bean would be more what I see every day. And, in fact, most of my coun­tries are bigger and more frequent borrowers than the Caribbean coun­tries.

Whenever some Executive Direc­tors have visited countries, I found

because they 've been in the field; they talked to some of the people and can see what is happening.

Looijen: The interesting thing be­ing an Executive Director is that you wear different hats. First, we repre­sent our countries in the Bank; we are the communication channel for them. Second, we are members of the Board, and as such are responsible for Bank policy. Then, in addition, I have a different perspective. I repre­sent a mixed constituency composed of some Part I countries-the rich countries which finance the Bank - and some developing countries like Romania and Yugoslavia. This makes my task even more challeng­ing because it involves balancing the various interests within my constitu­ency. For example, my Dutch au­thorities might prefer to channel all Bank money to the poorest; but in that case there would be no money to lend to Romania and Yugoslavia.

Traveling around, seeing the proj­ects, talking with the people in the developing countries, it is very inter­esting to go there to learn how things work and take into account what their perspective is.

Very often Bank staff see us only with our first hat and consider us

totally unjustified because we very soon turn into real members of the Bank community and feel ourselves part of the system and want to help the Bank.

Abdulai: I've always wondered if Executive Directors are really doing everything they should be doing, given the two hats Mr. Looijen re­ferred to. Quite often we appear to be only the mouthpiece of our gov­ernments. But because of our special position here and our understanding of the problem, we ourselves should really recommend and persuade our governments to take certain actions which they might not otherwise have taken. If we do not do that, then we are only a post office: We transmit mail but we have no input.

I would hope that in the future the Executive Directors will more and more guide their constituencies-to try to get them to be, I won't say more realistic, but to see the problem in the way that Bank staff sees them.

Drake: The single most frustrating aspect for me is the lack of accep­tance by the staff or by the manage­ment of our role in promoting the in­terests of the Bank as an institution, not just the interests of the countries we represent.

Question: Can the EDs themse'lves

-Abdulai

that they were more understanding more like the enemy. I think this is

'One must realize that the Bank staff works extremely hard under very difficult situations. '

do anything to Ol'ercome this prob­lem?

Drake: Well, we have tried to do so in several ways-writing papers, setting up committees, attempting to enter into dialogue with managers­but we have had very little response.

Abdulai: I would say that there has been a considerable improvement in certain aspects, but, of course, there is a long way to go.

When I came here as a technical assistant and talked to staff members as friends, I knew that the Executive Directors were not regarded as part of the Bank. In fact, they were re­garded as enemies. And my under­standing was that there were instruc­tions that no staff member should talk to Executive Directors on any­thing without clearing it with the very senior management. And if it was necessary for senior management to talk to the Executive Directors on those topics, they would do it, not the staff member.

Today, I would say that the Direc­tors, the Vice Presidents and all are far more willing to talk to the EDs than they were before, although there are still occasional lapses in communications.

I believe Executive Directors should be taken as part of the insti­tution. We are here to do exactly the same thing as even the President or the Vice Presidents. We want the Bank to prosper. We spend part of our lives here. I don't see the differ­ence between a staff member who was here for 11 years and the 11 years I spent here.

Even so, I still believe that since we are on the Board and take final decisions, there are certain things we perhaps should allow management to take charge of. I really do not believe we should take part in everything, given the fact that we do not always have the same information available to us. Many of these things are very delicately negotiated between staff, management and the countries, and we are not involved.

Question: How do you feel the Bank has dealt with the problems of del'eloping countries in general and in particular with those of your constit­uency?

Abdulai: Well, in general, I com­mend what the Bank has done in my constituency. It has made mistakes, but these were mistakes made hon­estly. One must realize that the Bank staff works extremely hard under very difficult situations.

Mr. (Robert) McNamara did a lot. I think he was the first Bank President to decide to triple aid to Africa. This takes courage. I am also very pleased that Mr. Clausen has made my constituency his priority area. What bothers me is that the Bank has not been able to do, in my

. 1 opinion, as much as it could do be­cause, unfortunately, it is meeting with more difficulty in mobilizing the necessary resources to meet the needs of these countries.

Drake: In the West Indies, I can only commend what has been done. The Bank has shown tremendous leadership not only of its own pro­gram but in its coordinating role, bringing in other multilateral and bi­lateral donors. But, more generally, I am beginning to wonder whether the Bank has been sufficiently innovative and farsighted in adapting to the changing needs.

For example, the IMF has intro­duced all sorts of new programs; it has shown itself capable of adapting to changing times. In contrast, The World Bank had a good formula, but it hasn't changed it much: We are doing things in the same old way at the same old stand. Of course, our resources are constrained, but I won­der if we could not find new ways to stretch those limited resources to make them more effective.

Looijen: But one must recall that the IMF's basis was destroyed in 1971 when the dollar became incon­vertible. This forced the IMF to be innovative, but I'm not sure that aU

these innovations have been improve­ments.

As far as my countries are con­cerned, I must say that I've often been surprised how very few com­plaints I've gotten about The World Bank. In general, there is only praise for the way the Bank tries to behave.

Returning to the question you posed, however, I would say that the OED (Operations Evaluation Depart­ment) reports give evidence that, even though the Bank occasionally stumbles in its efforts, by and large its projects help to elevate countries to a higher level of development in a very short time span.

Question: What issues do you see the Bank taking on in the future?

Looijen: One point that is worrying me is the Bank's finances. The Bank has developed rapidly to about the biggest borrower in the world. It has to go to the markets and find money, but it is committing its money years before it starts to borrow the funds to cover those commitments.

I am really concerned that the Bank with its large size is becoming more and more a hostage of the market.

Perhaps the Bank has reached its maximum size and should start thinking about splitting up into a few sectoral banks such as an agricul­tural'development bank, an industrial development bank, etc., with a kind of overall economic and sectoral brain trust to overview the whole thing, and then those banks could go to the market separately.

Drake: I think another key issue for the future is how the Bank can increase its capacity to influence ma­croeconomics. We have to change from a project and sectoral focus to a macroeconomic policy dialogue. The Bank has begun with the instrument of structural adjustment lending, but it has to find other ways to increase its leverage.

One way to address this issue is by changing the method of selecting and training of staff, because it requires a

. ;

J .

THE BANK'S WORLD/OCTOBER 1982 9

~

, t·

different skill to negotiate and to per­suade governments to change funda­mental policies than it does to talk about how a project is going to oper­ate and have a good economic rate of return. It may also mean changing where we put people-whether we put them at Headquarters, whether we put them overseas, because I do not believe that you can get the max­imum policy impact by just flying in every few months and demanding to see the President and Finance Minis­ter and saying that that's the way it's going to be and then going back to Washington. I think one has to live through the monsoons and through the difficult day-to-day situations if one is to understand the local envi­ronment and if you are going to have any real impact.

Abdulai: I certainly share Mr. Looijen's view that the financial situ­ation is going to be a major problem, but I do not agree with him that splitting the Bank into an agricul­tural bank and all that would really make much of a difference.

I also agree completely that the Bank must now begin not only to en-

IPerhaps the Bank should start thinking about splitting up into ... an agricultural development bank, an industrial development bank, etc.'

- Looijen

gage in more policy dialogue with the borrowing countries, but also to think very carefully about the people that it picks to do particular jobs, and where they will be located.

It's one thing to be an MIT gradu­ate-very high powered in econom­ics, familiar with all the theories, and able to manipulate any models. It's another thing to sit down and talk to governments. You have to know that you cannot change the world in just one day.

Looijen: May I add something? As far as the macro influence is con­cerned, I think it would be desirable, but, then of course, we get into the same kind of danger as the IMF. It means politically influencing the countries themselves. If we go that way it would mean we will have to rebuild the Bank in a very large measure. It seems to me that the Bank is quite good at project lending, and it might be better to concentrate on that for the time being rather than to venture too far into the polit­ical field.

Drake: I think you are right to point out the risks, because there is a

very real trade-off here. But it's de­batable. My view is that we should be prepared to take that risk; that's how we are going to have the most clout, given the limited resources.

Question: As Executive Directors you have a unique perspective on the Bank's operations. What guidance would you offer to Bank staff to help them do their jobs better in terms of the relationships with borrowing countries and with the Board?

Looijen: I think the main thing which Bank staff should do is to watch against being too convinced that they know best. Of course, they are very experienced, most of them, but they should certainly not neglect the innate knowledge that they find in the developing countries.

As for relations with the Board, we want Bank staff to see us as friends and to understand that we work for them, too. Weare very well placed to represent their views vis-a.-vis our governments.

Abdulai: We are here to do exactly the same job as all the other mem­bers of the staff are doing. I hope they'll see us as friends. BI

10 THE BANK'S WORLD/OCTOBER 1982

OntheRecord----_____

'A Time for Vision'

Bank President A. W. Clausen addressed the Council on Foreign Relations in N ew York C ity last month. Here

are excerpts from his remarks: " Right now, the world economy very much needs posi­

tive leadership from the United States. This is a time for vision. We must all rise above the immediate short-term pressures we confront, and look ahead to the longer-term effects oJ actions we take in response to pressing prob­lems.

"America's destiny is deeply entwined in the broad po­litical and economic trends of our planet, and our world is bound to become yet more inextricably interdependent in the years ahead. So I am troubled that many Americans do not yet sufficiently appreciate how much their own in­terests are served when the U.S. provides strong, generous leadership in international economic affairs.

"We've just come back from the Annual Meetings of the Governors of The World Bank and the International Monetary Fund in Toronto. AJlhough we've seen some en­couraging economic signs lately, those meetings were so­bered by Mexico's financial troubles, and by the frustra­tions which finance ministers from all around the world expressed.

"(At Toronto) we reached a convergence of views. We found general international agreement on three broad Hnes of action to help us recover non-inflationary growth. These are: disciplined economic management by national governments, liberal international trade, and reliable flows of financing to the developing countries.

·~Now. over the next few months, is the time for fol­low-up action. And successful international action toward economic recovery will depend, more than anything else, on positive leadership by this country."

* * * "The current situa tion clearly calls. first of all, for dis­

ciplined economic policy management by governments. 'The industrial countries still account for two-thirds of

global production. The U.S. alone accounts for roughly a quarter of everything produced in the world. So global levels of infla tion and growth depend mainly on the poli­cies of the U.S. and other industrial countries.

"The industrial countries have relied heavily on mone­tary policy to fight inflation. while their fiscal deficits have remained quite high. And this has made the struggle to reCOVer non-irifla, tionarygrowthunnecessarily lOI).g a.nd painful.

A. W. Clausen

"We a ll hope for a new surge of investment, which is, after aU. the main engine of growth. But ptiva te invest­ment has been stalled by high interest rates, and securing stable . low rates of interest' demands a better balance be­tween fisca l and· monetary policies.

uDisciplined economicmanC\gement is no less essential for the developing countries during these difficult times. and The Worlp Bank is . ifl(;reasipgly . stressing sound eco­nomic policies in its dialogue with our borrowing coun­tries. We aim to help them reduce their balance-of-pay­ments deficits without unnecessarily restraining growth.

"This often cans for fiscal discipline tocontTol infla­tion. As a group, the developing countries are putting more of their income into investment than the industrial countries are, but we often suggest how they call make more efficient .use of their investment-by giVing better incentives for efficiency in agriculture and industry, for example, or by channeling more investment into the .con­servation and domestic production of energy.

"Sound economic policies are always good tonic, but during tl1ese years of adjustment. they have become essen­tial medicine. That's the message we't;e giving our borrow­ing countries, and the health of the global economy de­pends even more on disciplined economic management in the U.S. and the other industrial countries."

* * * ~~At the same time, we need to recreate dynamic condi­

tions at the global level to support the efforts national governments make toward economic recovery. So let me turn next, tileD, to the issue of liberal international trade. On the trade front, we've got a big opportunity coming up this November-the General Agreement on Tariffs and Trade Ministerial meetiI)g.

"The upcoming GATT Ministerial wilJ be the first such high-leveJ conference organized by the General Agreement on Tariffs and Trade since the TOkyo Round began in 1973. The U.S. was imaginative and forceful in bringing the Tokyo Round negotiations to a successful conOlusion. But noisy disputes just now among the U.S., Europe, and Japan threaten to divert a ttention away from the common business of preparing for a new round of ne-­gotia tions.

~'Nowadays. nearly a fourth,of everything produced in the world is traded internationally. That proportion dou­bled dll ripg the '70s. And because of the increased inte-­gra tion 6fthe world economy, bowing, to protectionist

THE BANK'S WORLD/OCTOBER 1982 11

· l

pressures now is even more dangerous alld disruptive than in the past.

"The GAIT meeting in November c:ould be a historic event. If the ministers can get beyond a~ general reaffir­mation of the principle of liberal trade to specific progress on trade issues which still need to be resolved, this meet­ing could-together with falling price levels and interest rates-help to mark the end of our economic disarray."

* * * "One of the most important breakthroughs the minis­

ters might achieve would be defining a process toward fre'e trade with the developing countries. More than any other factor, trade has contributed to the economic dy­namism of many developing countries. And, as a r~sult of such dynamjsm, the United States, for example, now ex­ports 60% more to the developing countries than to West­ern Europe.

HOn the other band, many of the developing countries still retain high barriers to trade, and both we and they have lost tremendous potential benefits because of it. So the Ministerial should start discussions about how to focus more attention on trade items that are important to the developing countries.

"The GATT Ministerial could aJso plow new ground on the possibility of agreed rules for private international investment. Such rules would stimulate more foreign di­rect investment, especially in the developing countries."

* * * "This brings me to tbe third and final broad line of

action-in addition to disciplined economic management and liberal trade--<>n which we discovered general agree­ment in Toronto: reliable flows of financing to the devel­oping countries.

"The net flow of capital to the developing countries has more than tripled-in real terms-over the last two decades. In the early '60s, about a third of this financing was from private sources, and considerably more than half was development assistance. Primarily because of the dra­matic growth of commercial bank lending, those propor­tions have just about been reversed. More than half the new financing developing countries now receive comes from priva te sources, and only a third is development as­sistance.

hit is essential. both for the devel()ping countries and for th~ stability of the.international financial system, that net levels .of financing. both commercial and official, be~at the very least-maintained in real terms.

"It is, therefore, imperative that the commercial banks continue to play their crucial role in providing funds to nations With pa.yments deficits. This is a moment for pru­dence by commercial banks,but certainly not for retreat.

"The World Bank, too, has weighty responsibilities for maintaining capital flows to the developing countries ....

"The decision of the U.S. administration to fUhd the U.S. commitment to IDA's sixth replenishment in four years instead of three, as originally planned, provoked a crisis in IDA funding. At the Toronto meetings. most of tbe donor nations except the U.S. agreed to pay in their commitments to IDA 6 in three years, despite the U.S. shortfall. And they agreed to provide an additional $2 bil­lion in fiscal year 1984, while' the U.S. is finishing up its commitment to IDA 6.

"The world recession has hit many of the low-income IDA countries hardest, and the other donor nations are coping with difficult budget problems in these years, too. The generosity of the other donors is a triumph for inter­national understanding. It is based, however, on the clear commitment of the U.S. administration to work to com­plete jts IDA 6 contributions within about the next 18 months.

"The donor nations also agreed in Toronto that they wHl begin negotiations for the seventh replenishment of IDA this November. If these negotiations are to be crea­tive and successful, we will need leadership-not indiffer­ence-from the United States.

"Finally, iIi this connection, allow me to comment briefly on the acceleration of military spending that is currently under way in this country. I appreciate the ar­guments that are made for substantial defense budgets, but the very rapid rise in military spending has crowded out development assistance programs such as IDA. And is it unreasonable to assert that an increase of a few hun­dred million dollars in U.S. contributions to lDA would do more for international security than a similar amount added to the U.S. military budget, which already runs into the hundreds of billions of dollars?H •

Human Resources Development in Africa

Roger A. Chaufournier

Mr. Chaufoumier is Vice President, Europe, Middle EastThe following remarks are excerpted and translated from Roger Chaufournier's address in August at the and North Africa (EMENA) Region.

Conference on Human Resources Development and Utili­ "We consider that education is the cornerstone of hu­zation in Africa held in Libreville, Gabon, West Africa. man resource development and, consequently, at the very

12 THE 8ANK~S WORLD/OCTOBER 1982

heart of African development. ... "Human reSOurce expenditure in Africa is already very

high, averaging 16%, thus considerably higher than for -any other sectors of public expenditure in the last decade. For example. in the 1970s. the share of public expenditure for education was about 20% in Senegal. 23% in Niger, and 21 % in Rwanda. Moreover, somewhere close to 90% of recurrent expenditure for education went for salaries, seriously limiting the possibility of financing more practi­cal and technical and, consequently, more expensive types of educational programs.

"Thus. any increase in public expenditure for educa­tion can only be expected to come from an increase in na­tional income and a parallel increase in the state budget. However. the prospect for the economic growth of African countries in the 1980s is not good. The Bank's World De­velopment Report 1981 suggests that even the most favor­able hypotheses relatjng to the expansion of the world economy would not lead to any significant growth in aver­age per capita income for Africa in the next 10 years. It may be that these forecasts are too pessimistic! neverthe­less, it is clear that the prospect of slow economic growth is likely to have serious repercussions on human resource investment.

"No matter what the economic long-term prospect may be, the Bank's experience suggests that. African states cannot afford to not continue their investment iIi human resource development since the economic returns are considerable. The Bank has conducted studies in 10 African countries which compare the economic return on education investment with that of investments in construc­tion of industrial plants and other infrastructure. The con­clusions of these studies are clear. The return of educa­tional investment compares favorably with the other investments. Moreover, given the lack of skilled workers in Africa, the return of education and training investment is often higher than in higher income countries.

"These studies have also shown quite clearly that it is a worker's basic skills in reading, writing and arithmetic which eventually determine his remuneration in the mar­ketplace and not necessarily the total number of years spent in school or the diploma received. This confirms the. long held view that workers who have mastered these basic skills are more productive. Other studies of the Bank have indicated that education's impact on productiv­ity is not limited to the industrial and commercial sectors. Educated farmers have been more innovative in produc­tion techniques and more effective in the management of their farms than uneducated farmers. In this regard,it is worth underlining the importance of adult functional liter­acy programs.

"The expansion of education has also Led to better in­come distribution. Our studies related to East Africa have shown that an overall increase in educated workers has led to a reduction in salary differentiations related to dif­ferent levels of instruction.

"'In the past, expansion of education has often tended to favor urban areas, but in the future (to the extent that improved access to education is based on careful regional planning), expansion of the school system- particularly at the primary level-wi1l tend to diminish socio-economic differences between regions of a country by improved ac­cess for rural inhabitants. Future expansion should also ad9ress the participation rate of girls in primary educa­tion; often that is still not comparable to boys. This will also be an important target in. any program of expansion tn the future since we know that basic education for women is an indispensable condition for their participation in the modern sector of the economy.

"Thus far. we have spoken principally about expansion of basic education in order to assure the minimum of ba­sic skilJs that all persons require for further effective edu­cation and training. Beyond the primary levet measures to expand education must take inlo account the real re­quirements of the economy in order to avoid an increase in the educated urban unemployed ....

"[ would now like to turn to several important ques­tions that developing countries have pursued in an effort to render educational programs more consistent with eco­nomic realities ....

"1. First 0/ all, what has been the economic impact .,0/ efforts to diversify educational programs?

"Generally speaking, the introduction of additional curricular content in primary and secondary programs has tended to increase costs because of the need for more spe­cialized teachers, a greater investment in equipment, and a higher consumption of supplies, which have in turn made administrative and pedagogical management of edu­cation more complex and more difficult. Turning to pri­mary education, we have already underlined the primary importance of basic skills-reading, writing and arithme­tic~ However, in many primary curricula, these key sub­jects have tended to be crowded out by the introduction of new content, unfortunately not always within the capacity of the teachers to teach. And we know that there is a cor~ relation between student achievement in the basic skills and the real contact (teacher to student) instructional time that schools devote to the teaching of these skills. Consequently, the preeminence of basic skills in the school timetable should be reinstated, enabling teachers to teach what they can teach best.

"With regard to secondary education, the Bank's re­search, although not entirely complete, does tend to sug· gest that the same difficulties occur when there are reforms to diversify the curriculum. In many cases, diver­sification has sought to establish prevocational and voca­tional training in the secondary curriculum. However, the investment in workshops and equipment and in the recur­rent expenditure that they require has been especially high. In addition, workshops and equipment have tended to be underutilized because of the often relatively modest allocation of instructional. time to these subjects in the

THE BANK'S WOALD / OCTOBER 1982 13

overall school timetables. Further, teacl1ers with tbe re­quired training are often scarce. In some cases, instructors with relevant experience have had to be recruited frow the productive sector, making tbis diversification even more costly. Finally, the fundamental problem has been that since schools are generally out of contact with the world of work, the vocational training that they try to give is often out of tune with the needs of the marketplace.

H2. ATe there any cost-effective ways of improving the quality of education?

44African experience suggests some of the following ap­proaches:

"Increase the number of content hours per teacher (to tbe extent that teachers are not fully utilized) andestab­Ush a reasonable teacher jclass size. Tbe Bank has re­viewed the research literature on this question.

HDo not ask teachers to carry out assignments outsjde their professional competence and responsibilities, aDd en­sure that they devote sufficient teaching time to the key curricula they were trained to teach.

HWhere possible and witbout increasing salaries, im­prove the educational level and professional competence of teachers (for example, by providing intensive practical pe­dagogical training to future teachers who have a good sec­ondary education, rather than attempting to provide teaching skills and an imprOVed general education in the same program). As secondary graduates, who -cannot COD­

tinue to the university, come on the market, they can be­come primary school teachers.

HDespite the financial constraint, try to dedicate a greater share of recurrent expenditure to basic instruc­tiona] materials: textbooks, pencils and papers for stu­dents, and basic teaching aids (blackboard, chalks1 dic­tionaries. reference books) for teachers.

"Improve the quality of the textbooks relative to basic skills.

'"Above all, try to ensure that as many students as pos­sible complete the primary grades in order to reduce the wasted investment that results from dropping out (both from the erosion of basic skills and from the dirninjshed trainability tbat ensue). With regard to secondatyeduca­tion, it is important to remember that its effectiveness de­pends on students having acquired the basic skills neces­sary for further learning. Students must have mastered literacy and numeracy; these are the key tooLs. It is not the job of secondary education to provide remedial in­struction in these subjects; its role rather is to deepen and diversify knowledge and skills. However, as we noted ear-. lier, too much of the tendency to diversify curriculum con· tent can reduce the effectiveness of secondary schooling. Rather than aiming at a wide range of course offerings, secondary schools should strive to ensure that science and mathematics are taught effectively. To do so will require qualified specialist teachers and at least simple la1)orato­Ties and wqrkshops to permit the required practical work. Practical scientific, mathematical and technical instiuc­

14 THE BANK'S WORLD/OCTOBER 1982

tion in addition to basic education is required if secondary students are to later pursue further technical and scien­title trai.Q.ing. Clear:ly, these facilities impose additional costs; thus, whenever possible, particular attention should be given to full utilization of the additional resources-for example. through the sharing of the specialized teachers and facilities by several schools. Finally~ given the need to be guided by manpOwer requirements and the overriding buc:igetary constraint, secondary school places may have to be less than social demand would require. This implies both a careful but equitable selection of students for avail­ableseeondary places, and the provision of non-formal vo­cational training for those who leave the formal system with only primary education.

"3. Can out-oj-school education payoff? ··There have been many attempts to introduce primary

level educational programs out-or-school, particularly in the contexl of rural development projects. In general. these have turned out to be more costly than formal pri­mary schooling. largely because the latter already has an organization and a logistical system in place; conse­quently, it enjoys an economy of scale. On the other hand, adult literacy programs do appear to be a good invest­ment, particularly if they are functional and intensive. tbat is, directly addressing the economic and social inter­ests of adults. affordable in costs, compatible with the work environment. and relatively short in duration so as to maintain motivation ....

4~4. What are effective approaches to the provision of industrial training?

"The first essential is that the annual output in skilled workers matches in quantity and quality the needs of the economy as foreseen by national plans and the investment programs of the enterprises. Where the enterprise is suffi­ciently large (and requiring expensive eqllipment, e.g., mining and textiles), vocational training is best carried out within the firm. However, the state does have a role in encouraging the development of in-industry training in­stallations by the provision of financial help and technical advice ....

"As far as the training of technicians is concerned, the traditional technical high school has in the past often played an important role in governmenCs manpower de­velopment programs. Unfortunately, such schools are of­ten unable to provide either a good secondary education or a good technical education because they're out of con­tact with the world of work and find it difficult to attract qualified technical teachers with industrial experience ....

nThe World Bank stands ready to help its African members take up the challenge of human resource devel­oprnent.. .. We have established a continuing dialogue with African governments which we feel will ensure that our programs address their real priorities. It is vital tbat the Bank continue to support human resource development in Africa if its overall economic growth is to be ac­celerated." II

The Joint Library is Changing the Way It Manages Information

More Than Lending Books

The Joint Library lends books and The World Bank lends money.

For many people, the two organiza­tions have come to be symbolized by the books and the money which are borrowed from them. The simple ac­tivity of lending books, however, does not reflect the extent of the Joint Li­brary's mission any more than the term "moneylender" describes the role of The World Bank in the com­munity of international organizations.

For Librarian Maureen Moore, who came to the Joint Library 18 months ago after holding a variety of positions in academic and govern­ment libraries in the United States, this distinction between methods and mission, between lending books and lending money, is vitally important for Bank and Fund staff to appreci­ate in order to best take advantage of the library'S rapidly changing facili­ties, particularly in the area of im­proved information access and data bases.

"Energy was the most interesting field to work in during the 1970s," comments Mrs. Moore. "For the 1980s the field to watch is informa­tion. Notice the advertisements ap­pearing in the Financial Times and The Wall Street Journal. Computer manufacturers boast that their equip­ment will improve executive decision­making. The telephone company an­nounces that it is in the knowledge business. And as a more immediate example, in July the Bank restruc­tured its Computing Activities De­partment into an Information Re­source Management Department.

"These advertisements are not mere posturing," Mrs. Moore adds, "and the Bank's organizational change is certainly not cosmetic. They all reflect a growing recogni­tion that information, like money, is one of an organization's basic re­

sources. And, like other resources, it must be properly planned for and managed or it will be wasted."

Mrs. Moore believes that the Joint Library has an important role in helping the Bank manage this newly precious resource. "Unfortunately, many people in the Bank have an im­pression of the Joint Library as a rather musty warehouse for printed materials," she says. "We are deter­mined to change that image by giv­ing the kind of professional service the staffs have a right to expect."

Expanding the Joint Library'S link to outside information sources, tap­ping into Washington's wealth of information facilities-libraries, gov­ernment agencies, international orga­nizations and universities-is, there­fore, a top priority today. And, the principal instrument for such im­proved information access is the com­puter. "If the card catalog was the image of yesterday's library, the CRT (cathode ray tube) is the sym-

Maureen Moore, Librarian, and Michael Ra­hill, SpeCial Project Librarian, check blue­prints for Joint Library location in new IMF Building to open this fall.

Photo by Michele lannacci

bol of tomorrow's," says Mrs. Moore. "On-line technology is the only way that modern libraries can hope to keep pace with the explosive demand for sophisticated information re­trieval.

"In the Joint Library," Mrs. Moore continues, "we are introduc­ing automation not only to speed up the buying and processing of library materials but also to improve the di­rect information services to library patrons.

"Since last October," Mrs. Moore says, "we have added close to 200 data bases to the Joint Library's ref­erence service. The data bases give us added ability to provide quick and focused access to a span of informa­tion as wide as the Bank's areas of interest. At the same time we are creating our own specialized data bases for use by Joint Library pa­trons. When we move to our new lo­cation in the new IMF building next winter, patrons will be able to use a terminal to scan our on-line index of pertinent articles from selected finan­cial and technical journals. In a short time they will also be a ble to search the library catalog in the same way."

Technology will also help link the Joint Library with the other libraries and information centers located throughout the Bank and the IMF. "The two organizations have more than 20 'mini' libraries," explains Mrs. Moore. "It is essential that re­searchers have ready access to all of the information in these separate fa­cilities. Once the Joint Library'S ca­talog is on-line, anyone in the Bank or the 'IMF with a terminal in his or her office will be able to search our collection for materials of interest. The same flexibility needs to exist for the other library collections as well. The technology exists; we sim­ply need to make use of it." II

THE BANK'S WORLD/OCTOBER 1982 15

..t •

by L. R. Satin

Colonel Edward Sackor, Minister of Internal Affairs, delivers the keynote address to the opening session of the Monrovia Urban Development Project Launch Seminar. Behind him, left to right, are: Wouter A. Meijer, Western Africa Urban Projects; Nicholas A. Gibbs, Western Africa Country Programs Department I; Deputy Minister John Tamba, Seminar Chairman; Mayor Gayflor Y. Johnson; and Dr. Harry Nayo, Minister for Presidential Affairs.

The television lights came on. The news cameramen and radio tech­

nicians checked their equipment. And the Minister for Internal Af­fairs, Colonel Edward Sackor, stepped to the rostrum to deliver the keynote address to the 200 guests and participants at the opening ses­sion of the recent "Urban Develop­ment Project Launch Seminar" held

L.R. (Bob) Satin until October 1980 was a Se­nior Lecturer at the Development Planning Unit of University Col/ege, London, specializ­ing in urban and regional plan implementa­tion. He joined the Bank as a consultant to the Urban Development Department where he served as Economic and Urban Adviser. He is currently a consultant to the West Africa, East Africa and EMENA (Europe, Middle East and North Africa) Urban Projects Divi­sions. The author suggested the Project Launch Workshop concept in March 1981 in an urban sector discussion paper.

Photo by Arthur James

in Liberia's Monrovia City Hall. Cabinet ministers and diplomats

were in the audience as were four Bank participants: Nicholas Gibbs and Ishrat Husain of Western Africa Country Programs Department I; Wouter Meijer, the Project Officer in Western Africa Urban Projects; and the author, representing the Urban Development Department.

Dr. Harry Nayou, the Minister for Presidential Affairs, stated that the project is a "top priority of govern­ment," and this .commitment trans­lated into full coverage of the speeches on local radio and televi­sion. The newspaper The New Li­beria highlighted the meeting on page 1.

The Project Launch Seminar officially and publicly initiated the implementation phase of the Liberia

Urban I project designed to improve directly the living conditions of 100,000 people-nearly a third of the capital city's population. The IDA­supported urban project will finance the comprehensive upgrading of es­sential infrastructure in three low-in­come areas of Monrovia.

In addition to cost-recoverable in­vestments in electricity, water, sew­ers, roads and drainage, the project will provide community health and education facilities and the granting of land tenure to some 30,000 urban households through the support of the government's land adjudication program.

The Monrovia Urban Development Project Unit of the Monrovia City Corporation, as chief implementing agency, will initiate, coordinate, schedule and monitor the activities of about 16 government agencies and community groups during the five­year implementation process.

The Project Launch Seminar was designed to bring together represen­tatives of these agencies, the German consultants to the project unit, and community action groups in three days of structured plenary and work­ing group sessions to review goals and objectives, discuss the implemen­tation strategy, and explain the IDA requirements for project fiscal con­trol, reporting and procurement re­quirements.

About 70 people attended the ses­sions. They included management and technical level representatives from various Liberian Government Ministries and corporations as well as from the United Nations Develop­ment Programme, UNICEF, the U.S. Agency for International Devel­

16 THE BANK'S WORLD/OCTOBER 1982

opment, and the Peace Corps. The seminar sessions focused on

project management, implementation strategy and interagency coordina­tion. Four working groups covered fi­nancial issues, land and engineering, community participation, and project management and coordination. Each group drew up a number of recom­mendations which were discussed in plenary sessions.

The Monrovia Workshop was the second in a pilot series of project launch activities to be undertaken with assistance of the Urban Devel­opment Department of the Opera­tions Policy Staff. The pilot series is intended to evaluate the usefulness of the Project Launch concept in the context of the contrasting develop­mental and cultural settings of the six geographic regions.

The first of the pilot series was held in Villahermoso, Tabasco State, Mexico, in June 1981 to launch the Mexico Second Urban and Regional Development Project which is, to date, the Bank's largest urban sector project (US$468 million) and is un­der way in the three southern states of Veracruz, Chiapas, and Tabasco. The Project Launch Workshop-pre­sented as an "Urban Development Seminar"-was under the overall di­rection of the borrower, BANO­BRAS (The National Bank of Public Works and Services), with assistance from the State of Tabasco.

The four-day seminar brought to­gether about 100 officials from the three cooperating states, including the mayors of the 10 cities participa­ting in the project. The World Bank was represented by Mario Rothschild and Thakoor Persaud (Latin Amer­ica and Caribbean Projects, Urban Division), M. Fernandez-Palacios (Latin America and Caribbean, Country Programs Department I), Alan Mole (Controller's), and the author.

The workshop sessions proved to be effective in bringing together for the first time most of the officials who would be directly responsible for implementing the components of the

project. The seminar, while success­ful, did highlight some deficiencies in the workshop's structure and content. Specifically, there were no presenta­tions to the seminar on Bank-bor­rower relationships from the point of view of the borrower, i.e., no experi­enced Mexican official was present to augment the presentations of the Bank team; while the smaller work­shop sessions were effective as a means of information exchange, they were somewhat unfocused in that they lacked a specific task or the production of a report or recommen­dations; and finally, the Bank team did not have suitable visual and writ­ten material with which to illustrate some of the concepts of urban up­grading and community participa­tion.

The experiences of the Bank team in helping BANOBRAS present the first workshop were used to good ef­fect in the design of the Liberia launch seminar. -As in Mexico, the agenda facilitated open and frank discussion of key issues of implemen­tation, interagency coordination and Bank-borrower relationships. Three new agenda additions, based upon evaluation of the Mexico workshop, proved to be particularly important: Liberian officials of an ongoing IDA­supported education project unit (Li­beria Education I, II and III) were relevant and creditable contributors to the working group sessions on Bank/IDA-borrower relationships; the working group sessions were asked to present written recommen­dations to the final plenary session on resolving key issues of project imple­mentation; and the award winning Bank film produced by IPA (Infor­mation and Public Affairs), "The Neighborhood of Coelhos," was shown to the participants arid proved most effective in vividly showing the urban upgrading process in a similar project in Brazil.

What have the two Project Launch Workshops accomplished? Their con­tribution to effec'tive project imple­mentation will be assessed during the supervision of the Mexican and Li­

berian Urban Projects. What is clear from the participants' evaluations is that both workshops successfully achieved the following goals:

(1) renewed the enthusiasm of participating agencies for the project;

(2) built a sense of joint participa­tion and responsibility;

(3) oriented new staff in history, purpose and strategy for project im­plementation;

(4) committed current political leadership to the project;

(5) allowed Bank staff to explain Bank guidelines regarding reporting and project control;

(6) allowed borrower and Bank staff to work jointly on effectiveness conditions; and

(7) allowed Bank staff to continue to learn more about relevant issues concerning project implementation.

A more immediate accomplish­ment of the pilot series has been the adoption by LAC Urban Projects Di­vision of the Project Launch concept as a feature of project implementa­tion support activities. The Ecuador Urban II Project-National Low-In­come Housing was recently launched with a two-day seminar in Quito sponsored by BEV (Ecuadorian Housing Bank). The seminar brought together representatives of three of the 10 participating cities that will implement the project. The Bank was represented by Neil Boyle and Eric Canessa of LAC Urban Projects, and Carlos Bertao of the Legal Depart­ment. Subsequent workshops will launch implementation of project ac­tivities in the remaining seven cities. BEV, with Bank urban project staff support, also intends to hold annual implementation review workshops during the life of the project.

The Urban Development Depart­ment plans to support additional pilot Project Launch activities during the current fiscal year. Suitable future projects with which to test the con­cept are being identified in the urban sector as well as other project sectors that are interested in using and adopting the concept to their particu­lar needs. II

THE BANK'S WORLD/OCTOBER 1'982 17

' :' .

A Loo Inside 600 19th S •

The 6th floor terrace includes a covered area, benches and plantings. In the background, the IMF building.

The elevator areas will be easy to find from afar, thanks to the different color coordination of the carpeting. And to prevent people from stuffing ashtrays with debris, wastebaskets are provided. A corner office with a view.

18 THE BANK'S WORLD/OCTOBER 1982

In October 1980, the new H Build­ing (600 19th St., N.W.) was a hole

in the ground. In just a few weeks, the first of a number of Bank units will be moving into the building, a full month ahead of the scheduled completion date of December 26. By the time the moves are completed in mid-January 1983, the H Building will be home for Europe, Middle East and North Africa (EMENA) RegioI1, the Operations Evaluation Department, South Asia Regional Office, Information Resources Man­

agement Department, and Publica­tions Department's Distribution Unit.

H Building, on the corner of 19th and G Streets, is 12 stories high, ex­cluding the mezzanine, and has three parking levels designed to accommo­date 190 automobiles. About 1,100 Bank employees will work in the building, which has 568,000 square feet of space.

Shortly after January' I, a cafe­teria, snack bar, executive dining room and several small dining rooms for special events will open. The first

The wall in the center is called a "courtesy wall." It prevents secretaries who will be seated at desks along the left-hand wall from being disturbed.

A view from the small courtyard outside the first-floor cafeteria .

The garage is wide open, making parking easy.

A typical office with a window, including the furniture configuration that may be found there .

A secretary's desk.

J .

basement will house an auditorium seating 350 people, and there'll be a health/exercise room, a print shop and a mechanical shop.

In addition, the sixth floor will contain a snack bar and a terrace for staff to relax and sun themselves.

Although work is still being done on the building, The Bank's World was able to take a peek inside. The photos on these pages give staff a preview of some of the things they'll find at 600 19th St. Ell

· r

0 hanges. In 31 years at the Bank, ~Audrey Mitchell, a staff assis­tant with the Consultative Group on International Agricultural Research (CGIAR), has seen a lot of them.

"We were mainly at 1818 H Street, in a very riice office on the 11 th floor," she remembers. "One building after another came upon us, and I saw our favorite places disap­pear: the White Tower, the Key Hole, the Chicken Hut. There have been many significant changes, but I've never once regretted joining the Bank," she says, reminiscing about simpler times.

Mrs. Mitchell's life at the Bank has been varied, and to hear her speak, it has been filled with anec­dotes as well.

"My first job in the Bank was with the Information Department. We were a great team. At that time, the department was quite small, and Harold Graves was the Director of Information. There was also a Dep­uty Director, a Publication Officer, Doris Eliason (now Bomstein); Garry Lightowler was photo assistant, and I had several other friends there.

"We had our offices over what was then Whalen's Drugstore, and one day our offices were robbed. Well, it turned out Mr. Graves was in New York on business, and the Deputy Director was asked about the robbery by reporters. Quite a produc­tion was made about all this, and we discovered the robbers took, among other things, $100 million worth of Mexican bonds which were for Mexi­can power loans." The bonds, it turned out, were non-negotiable.

When Mrs. Mitchell came to the United States from Canada, she quickly joined in the Bank's social life. "There were very fancy parties at the Mayflower, and later at the Sheraton Park. I was active in the

20 THE BANK'S WORLD / OCTOBER 1982

formation of the Bank's dramatic so­ciety (it never matured). I attended the first reception they held, wore my new blue contact lenses, and promptly lost them on the blue rug.

"And then, of course, we had a wonderful bowling league. Mr. Black was President then; I remember it quite well. He often came bowling with us, and kissed all the girls when they made strikes. I think I struck out, actually, but he was so nice ... " She pauses, recalls. "He would have a prize to give to the best bowler,

. and invariably, at the end of the eve­ning, he'd decide he was the best."

She participated in three Annual Meetings abroad, in Tokyo, Brazil and India.

"While en route to India," she says, "we stopped for connections in Athens. We had a long wait there due to an airline strike. I was ap­proached by a beautiful little boy who wanted to be adopted and taken back to America. I was determined to do just that, until I learned he wasn't seven or eight years old, as he claimed, but 15. That one was a close call."

Mrs. Mitchell has made many contributions to the Bank in her more than three decades here. She proofread and edited most of the Bank's early Survey Mission Reports, as well as the Blue Book. She helped set up the first photo library, which

originally consisted of one large scrap book and two un-indexed file drawers, "back before Xerox ma­chines, electric typewriters, or fancy telephones. We used carbon paper for most of our work, and it was very messy and often ineffective."

In 1968, she joined the Develop­ment Services Department (later called the International Relations Department). "I still worked with Mr. Graves, as well as with Michael Hoffman and Shirley Boskey. Mr. Demuth was our Director then, and we all worked very well as a group. I helped put together the book dealing with the history of The World Bank. Later, in 1971, the CGIAR was formed . I stayed with them-Mr. Graves retired-and I worked for Dr. Coulter, the Scientific Adviser to the Consultative Group. I now work for Dr. Donald Plucknett, who succeeded Dr. Coulter.

"All in all," says Mrs. Mitchell, "I've enjoyed The World Bank. I've met some wonderful people. I think my most important assignment was with the Information Department, and I enjoyed the contacts I had with the press. I tried my best to be help­ful and tactful with their ques­tions-and answers. It was a chal­lenging job. Now, I consider myself an all-purpose staff assistant, help­ing wherever I can, and I find work­ing for the Scientific Adviser very in­teresting-although I'm still not sure what helminthosporium septoria tri­tid* means."

*Editor's Note: It's a plant disease.

Audrey Mitchell Photo by Michele lannacci

Aroundthe Davis 'Loaned' To United Way

Ted J. Davis, a senior rural develop­ment officer in the Agriculture and Rural Development Department, is the Bank's first loaned executive to the United Way organization.

A number of large corporations in the metropolitan area traditionally lend executives to the United Way to help raise funds for the organization.

"My assignment is for three months-September, October and November," says Mr. Davis, "and I am in the major gifts program." Forty percent of the United Way's funds come from that program, which includes the large corporations in the area. "My assigned clients are commercial banks and savings and loans," Mr. Davis adds.

Working for the United Way is nothing new to The World Bank offi­cial. "When I practiced law in Oklahoma City," he says, "I was in charge of contacting professional people---doctors and lawyers-to contribute."

Mr. Davis says that United Way can benefit everyone, for its pro­grams enhance the quality of life.

Nearly 200 agencies in the United Way serve the Washington metropol­itan area, and many of them cater to the needs of the international com­munity.

The Bank's goal for 1982 is $167,500 in staff contributions, and the campaign which began October 4 ends early next month. 13

Tennis Champs

Alice S. Dowsett of the Economic Development Institute (EDI) and Jack Le Mair of the U.S. Agency for International Development (USAID) won the mixed doubles match in the 30th Annual Diplomatic Tennis Tournament, held last month. Ell

A Letter of Thanks

The letter below is similar to those Bank President Clausen and others have received from staff members who have suffered gri~vous losses and who have been comforted and assisted by people in the Bank. Like those letters, the one from David C. Jones, Financial Adviser, Urban De­velopment Department, to Mr. Clau­sen is a moving recollection of those sad hours and days following the tragic death of Mr. Jones's son, Philip. It also reflects the kind­ness and thoughtfulness of Bank em­ployees and others. Mr. Clausen's written response to Mr. Jones ex­pressed sympathy and noted the quality of character and human con­cern of Bank staff.

Dear Mr. Clausen, I know that you are as proud to

be the President of The World Bank as I am to work for it. At no time will this pride be more justified than in relation to the events of the last few days.

On the evening of Thursday, 26 August, my son, Philip, aged 19, was killed in a motor accident. I was on mission in Thailand with my wife. Among the many things which needed to be done, three were signifi­cant. We had to be told of the tragic news and supported in our grief; we had to be brought home as quickly as possible; and support was needed for Philip's brother, aged 22, and his sis­ter, aged 17, until we could comfort them and take over.

One of our son's abiding interests was in the efficient running of ma­chinery. This is the closest analogy I can draw to the way that the Bank put its administrative resources into action.

So many were involved in this wonderful operation that reference to individuals is perhaps inappropriate. However, we cannot avoid expressing

our gratitude to Fred Temple (Dep­uty Director of the Resident Mission) and his wife in Bangkok and to Fred's colleagues in the Regional Of­fice. Also, know that our journey was made smoother and swifter by the unseen but ever-efficient staff of the London office. Finally, we cannot avoid mention of Ann Foltz of the Personal Services Program, who han­dled so much at the Washington end. Her support, first of our children and then of us, was unforgettable.

Not content with performing in this exemplary fashion, which I know all would claim was just their job, our colleagues have provided over­whelming personal support.

We have received five or six sepa­rate floral tributes from my various workmates and an unbelievable num­ber of colleagues took time off from their busy workdays to attend Philip's funeral.

As we stood in the front pew of the church there were just five of us as family mourners. I, my wife, my son, my daughter and her husband. The next and all other relatives are on the other side of the Atlantic. We could have been forgiven for feeling very alone at that time. But we were not. Not only did we have our Bank colleagues to support us-we also had the love and support of some scores of our American neighbors and friends.

You, sir, as an American, should be proud of your countrymen for this support in our hour of need.

We should be most grateful if you could have this letter copied and sent to all those involved with helping us. In particular, please send a copy to Mr. Paijmans and to the Staff Asso­ciation.

Thus, in conclusion, please accept our gratitude, sir, on behalf of all those who have helped us.

Yours sincerely, David Jones 13

THE BANK'S WORLD/OCTOBER 1982 21

..t .

Senior Staff ApPointments JOZSEF B. BUKY has been appointed Division Chief, Eastern Africa Proj­ects Department, Water Supply and Urban Development Division. A U.K. national, he joined the Bank in 1974 as a Sanitary Engineer in the Western Africa Projects Department, Energy, Water and Telecommunications Division. He was promoted to Senior Sanitary Engineer in 1978. In May 1979 Mr. Buky transferred to Central Projects Staff, Transportation, Water and Telecommunications Depart­ment, Water and Wastes Advisory Staff, where he was promoted to Water and Wastes Adviser in July 1981. Mr. Buky assumed his new post September 20.

DENNIS PARSONS has been appointed to the Senior Staff Resources Pro­gram as Agricultural Adviser. He is assigned to the Office of the Direc­tor, Eastern Africa Projects Depart­ment, where he now assists depart­mental management and agriculture projects staff in reviewing technical problems facing agriculture and rural development. His principal tasks are to help in the formulation of technical packages and in agricultural research. A U.K. national, Mr. Parsons joined the Bank in April 1967 as an Agriculturist, working initially on agricultural and water development in Bangla­desh. In March 1971 he became Division Chief in the Ag­riculture Projects Department. Following the 1972 reorga­nization, he was appointed Chief of the Crops, Forestry and Livestock Division in the Asia Projects Department. Since July 1974 he was Division Chief in the South Asia Projects Department.

ANDRES RIGO has been promoted to Chief Counsel, Legal Department, Operations Division C (Western Af­rica Country Programs II, Eastern Africa), effective September I. A Spanish national, Mr. Rigo joined the Bank as an Attorney in 1973, serving in the Legal Department, Operations Division A (Latin Amer­ica and Caribbean, Western Africa Country Programs I). He was promoted to Senior Counsel in 1979. He has been acting Chief Counsel, Operations Division C, since March.

JEAN DOYEN has been named Resi­dent Representative in Rwanda, re­placing Jerome Chevallier who has returned to Headquarters. A Belgian national, Mr. Doyen joined the Bank through the Young Professionals Pro­gram in 1967. In 1969 he served the Transportation Projects Department as a Highway Engineer, transferring to the Regional Mission in Western Africa, Abidjan, in 1972, and to the Resident Mission in Zaire in 1974. In 1976 Mr. Doyen was promoted to Chief, Highways Division, Latin America and the Carib­bean Projects Department. Mr. Doyen assumed his post early in September.

Milestones

• MARY TIESLINK ~l~~ f October, ."t­20 years (not shown) " -',....'

~ .<it.iJ ROBERT ASSA October 20 years 20 years 20 years

MEENAKSHH.J. BOVE October

NORMA CAMPBELL September

LUZ E. OTIS September 20 years

22 THE BANK'S WORLD/OCTOBER 1982

New Staff Members

George Barros Philippines Administrative Assistant/ IN D 9/1

Judith Boney Haiti Secretary/ADM 9/27

Stephen Brushett United Kingdom Young Professional/YPP 9/23

Alice B. Bryan United States Insurance Officer/COM 9/16

Fay the Calandra United States Secretary / LOA 9/7

Warren J. Chafe Canada ED's Assistant/EDS 9/13

Diane Lyn Cohen United States Research Assistant/EPD 9/13

Michael D. Curran New Zealand ED's Assistant/EDS 9/21

Retirees

VE-CHENG CHANG September 30

JOHN GREGOR September 30

Sheila Fallon United States Secretary/EPD 9/27

Gustaaf A.M. Heim Netherlands ED's Assistant/EDS 9/20

Dale E. Hughes United States Management Information Analyst/SVPOP 9/ I

Keiji Ikezaki Japan Audio-Visual Technician/ADM 9/27

Wadea Kabli Saudi Arabia Lecturer, EDI 9/1

J. Scott Kahle United States Secretary/OED 9/20

Kah Lau United States Computer Systems Analyst/EMP 9/20

Gudrun Leithmann-Freuh Germany Young Professional/YPP 9/20

James A. Levinsohn United States Research Assistant/CPD 9/1

Terrance Lindemann United States Promotion/Marketing Specialist/ PUB 9/14

Susan Meade United States Secretary/IPA 9/27

Kenneth Myers United States Research Assistant/DRD 9/16

Lorrain L. Nagy United States Management Information Systems Assistant/MED 9/13

Marie-France Sacks United States Secretary/WAP 9/7

Kishan C. Sharma India Staff Assistant/EDS 9/13

Yutaka Shiotsu Japan Financial Analyst/SPR 10/ I

Marjorie Silverstein United States Nurse/MED 9/ I

Julie Tassi United States Secretary/PMD 8/30

Marlene V. Urbina United States Secretary/EAN 9/27

Sheree Wilson United States Secretary/FOD 9/20

Improving Your Writing

Want to improve your writing? One way to do it is to study the masters, such as Winston Churchill and Abra­ham Lincoln. So suggests Communi­cation Briefings, a newsletter pub­lished in Blackwood, New Jersey ..

Mr. Churchill, the former Prime Minister of Britain, when facing Hitler's armed forces in 1940, said to Americans: "Give us the tools and we will do the job." He did not say: "Supply us with the necessary inputs of relevant equipment and we will implement the program and accom­plish its objectives."

As for Mr. Lincoln, U.S. President during the Civil War (1861-65), 70% of the words in his famous Get­tysburg Address contain five letters or fewer.

Making what you write readable is imperative. Idea Book for the Edu­cation Editor, published by the Edu­cational Press Association of Amer­ica in Glassboro, New Jersey, offers

this short course in what we know about readability:

( I) A short sentence is easier to read than a longer one.

(2) A series of words in the same sentence having more than two sylla­bles increases reading difficulty.

(3) A series of prepositional phrases, even though easy in them­selves, increases reading difficulty.

(4) A straight subject-verb-object order (e.g., "Boy meets girl") makes the easiest reading.

And this note: Experts agree, says Communication Briefings, that the first five lines in a .letter either make it or break it. One study showed that the average business letter contains some 15 useless words. Examples: "please be advised," "we wish to draw attention," and "I have before me your letter." One company re­portedly saved $34,000 a month by eliminating useless words in 182,000

.1 • dictated letters. II

THE BANK'S WORLD/OCTOBER 1982 23

~Une__________~~~___ The purpose of this column is to an­swer questions of broad interest con­cerning The World Bank/IFC's poli­cies and procedures. Because of space limitations, only questions of wide interest can be published. If you have such a question, send it to: Answer Line, The Bank's World, Room N-246.

Question: What's going to bappen to the space between tbe D and C Build­ingsformerly occupied by the World Buttery? Did The World Bank make it an offer it couldn't refuse?

Answer: The World Buttery prop­erty changed hands without the prior knowledge of the Bank. Because of the narrow width of the property (25 feet), it is of limited value to the Bank. Nevertheless, we are in con­

tact with the present owners to dis­cuss the possibility of purchasing the property at a price which would rep­resent its worth to us in terms of avoiding future nuisance. Gordon A . Macdonald, Chief, Office Support Services Division, Administrative Services Department.

Question: Why tbe pbrase "Tbe World Bank"? It somehow seems a little odd and pretentious.

Answer: A timely question since there was a recent review of the in­consistent and sometimes confusing usage in publications, documents, correspondence, and signs of the names and symbols of the Interna­tional Bank for Reconstruction and Development (IBRD), International Development Association (IDA) and

International Finance Corporation (IFC).

The conclusion: "The World Bank" should be used when referring to both IBRD and IDA in publications, speeches, and correspondence to outsiders. Although the article "The" forms part of The World Bank name, however, there may be times when capitalization of that article will be awkward. Therefore instructions in the recently issued Administrative Manual Statement No. 6.00 permit use of "the World Bank" or simply "the Bank" in running text provided the full name, including the capital­ized article, has been used in the let­terhead or at the outset of the com­munication. Bruce W. Rohrbacher, Director, Organization Planning Department.

As we go to press. .. DISCOUNT NOTES: On September 29, the Bank began to offer Discount Notes under a short-term borrowing program approved by the Board last July. The Bank anticipates that in FY83 the proceeds of outstanding Discount Notes will be no more than $1.5 billion out of borrowings of US$9.5 billion from all sources.

In the two weeks preceding the initial offering, Eugene H. Rotberg, Vice President and Treasurer, made presentations to groups of prospective institutional investors and to the sales forces of the five dealers offering the Discount Notes -- the First Boston Corporation, Goldman Sachs and Co., Lehman Brothers Kuhn Loeb Inc., Merrill Lynch Government Securities Inc., and Salomon Brothers Inc. He described the protections afforded to the Bank's creditors by the Bank's financial and operational policies and emphasized that the Bank does not need to raise money by selling Discount Notes but has c~osen

to initiate a Discount Note Program now to have additional flexibility in managing its financial operations. Presentations on the Discount Notes were made by Mr. Rotberg and other staff members in 16 cities.

The Bank's Investment Department, under Hugo J. H. Schielke, Director, and Jacques R. Rolfo, Division Chief,

' implements decisions made on a continuing basis as to the prices at which the Discount Notes will be offered for different maturities. As outstanding Discount Notes mature, the Bank expects to replace them by issuing new notes.

These debt instruments are called Discount Notes because instead of interest on them being paid periodically upon presentation of detachable coupons, interest is paid at maturity at a rate represented by the difference between the face-amount and the discount from the face-amount at which the note was issued.

The Bank's World, Vol. 1, No. 10. Published monthly in Washington, D.C .• by the Information and Public Affairs Department of The World Bank for all

employees and retirees of The World Bank/International Finance Corporation. Alan Drattell, Editor: Thierry Sagnier, Assistant Editor: Bin Fraser, DeSigner.