june 1978 - world bank document

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worldbank annual report 1978

World Bank1818 H Street, N.W.Washington, D.C. 20433

Front Cover: The Rajasthan Canal IrrigationProject will ultimately provide perennial irrigationto over I million hectares in this North Indian statethat is over one-third desert. Assisted by a 1974 IDAcredit of $83 million, the project includes land Frontispiece: Expansion of the port of Santos,development and reclamation, construction and serving central-south Brazil, including Sao Paulo,lining of canals and water courses, provision of is being assisted by a 1971 World Bank loan of $45fertilizers, and agricultural research and support million. A new container terminal is beingservices. As a result, production of foodgrains will constructed, rail and road access is being provided,increase substantially, additional jobs and income and dredging equipment purchased. Santos, Brazil'swill be created, and 33,000 farm families will be largest port, handles about 6.2 million tons ofpermanently settled in the IDA-supported part of general cargo and 8.6 million tons of bulk cargothe project. a year.

The World Bank

The World Bank is a group of three of the World Bank and 120 of them have joinedinstitutions, the International Bank for to date. The funds used by IDA, called creditsReconstruction and Development (IBRD), to distinguish them from Bank loans, comethe International Development Association mostly in the form of subscriptions, general(IDA), and the International Finance replenishments from its more industrialized andCorporation (IFC). developed members, special contributions by

The common objective of these institutions its richer members. and transfers from theis to help raise standards of living in devel- net earnings of the World Bank. The terms ofoping countries by channeling financial IDA credits, which are made to governmentsresources from developed countries to the only, are 1 0-year grace periods, 50-yeardeveloping world. maturities and no interest, but an annual service

The World Bank, established in 1945, is charge of 0.75% on the disbursed portion ofowned by the governments of 132 countries. each credit. Although legally and financiallyThe Bank. whose capital is subscribed by its distinct from the Bank, IDA is administeredmember countries, finances its lending by the same staff.operations primarily from its own borrowings The IFC was established in 1956. Its functionin the world capital markets. A substantial is to assist the economic development of lesscontributioni to the Bank's resources also comes developed countries by promoting growth infrom its retained earnings and the flow of the private sector of their economies and helpingrepayments on its loans. Bank loans generally to mobilize domestic and foreign capital forhave a grace period of five years and are this purpose. Membership in the Bank is arepayable over 20 years or less. They are prerequisite for membership in the IFC, whichdirected toward developing countries at more totals 1 08 countries. Legally and financially, theadvanced stages of economic and social growth. IFC and the Bank are separate entities. TheThe interest rate the Bank charges on its loans Corporation has its own operating and legalis calculated in accordance with a formula staff, but draws upon the Bank for administrativerelated to its cost of borrowing. and other services.

The Bank's charter spells out certain basic While the World Bank has traditionallyrules that govern its operations. It must lend financed all kinds of capital infrastructure,only for productive purposes and must such as roads and railways. telecommunications,stimulate economic growth in the developing and ports and power facilities, its presentcountries where it lends. It must pay due regard developmental strategy places a greatlyto the prospects of repayment. Each loan is increased emphasis on investments that canmade to a government or must be guaranteed directly affect the well being of the masses ofby the government concerned. The use of loans poor people of developing countries by makingcannot be restricted to purchases in any them more productive and by integrating themparticular member country. And the Bank's as active partners in the development process.decisions to lend must be based only on This strategy is increasingly evident in theeconomic considerations. agriculture and rural development projects

The International Development Association that the Bank and IDA help finance. It is alsowas established in 1960 to provide assistance evident in projects for education and familyfor the same purposes as the Bank, but primarily planning and nutrition, and in the Bank'sin the poorer developing countries on terms that concern for the urban poor, who benefit fromwould bear less heavily on their balance of projects designed to develop water and seweragepayments than Bank loans. IDA's assistance facilities as well as "core" low-cost housing, andis, therefore, concentrated on the very poor to increase the productivity of small industries.countries-mainly those with an annual per At the same time, lending for traditionalcapita gross national product of less than projects continues, and is being redirected,$520 (in 1975 dollars). More than 50 countries to be more responsive to the new strategy ofare eligible under this criterion. deliberately focusing on the poorest segments

Membership in IDA is open to all members of society in the developing countries.

Table of Contents

The Record for Ten Years-1969-78 8

Summary and Background of the Year's Activities

The Year in Brief 9Future Role of the Bank; Increase in Capital 10

IDA: The Fifth Replenishment 11

1977: Continued Growth, Persistent Problems 12

Increased Trade and the World Economy 15

Agriculture and Rural Development 17

Mineral and Fuel Development 20

Nonfarm Employment and Rural Activities 22

External Public Debt 24

Capital Flows from DAC and OPEC Countries 35

The Year's Activities, by RegionEastern Africa 37

Western Africa 43East Asia and Pacific 49

South Asia 55

Europe, Middle East, and North Africa 61Latin America and the Caribbean 67

Projects Approved for Bank and IDA Assistance in Fiscal 1978, by Sector 72

Technical Assistance

Technical Assistance 91Economic Development Institute 92

Other ActivitiesAid Coordination 93

Interagency Cooperation 94International Agricultural Research 96

Economic Research and Studies 97

Operations Evaluation 99Internal Auditing 100

International Centre for Settlement of Investment Disputes 101

Membership, Bank and IDA 101

Borrowings and Finance

Income, Expenditures, and Reserves: Bank 102

Other Financial Operations: Bank 103

Contents

The Bank's Borrowings-Fiscal 1978 103Borrowing Costs: Bank 105

Capitalization 105

Finances: IDA 106

Foreign and International Bond Markets-Calendar 1977 106

Executive Directors

Executive Directors 113

Joint Audit Committee 114

Statistical Annex

Index 115

General Notes to Annex Tables 116

Tables I -11 118

Bank Appendices

Index 137Financial Statements 138

Statement of Loans Approved duringFiscal Year 1978 (Appendix H) 152

IDA AppendicesIndex 157

Financial Statements 158Statement of Development Credits Approved

during Fiscal Year 1978 (Appendix G) 171

Bank/IDA AppendicesIndex 175Appendix 1: Approved Bank and IDA Cumulative Lending Operations,

by Major Purpose and Region, June 30, 1978 176

Appendix 2: Approved Bank and IDA Cumulative LendingOperations, by Country, June 30, 1978 178

Appendix 3: Administrative Budgets of the Bank and IDA 180Appendix 4: Governors and Alternates of the Bank and IDA 181

Appendix 5: Executive Directors and Alternates of the Bank and IDA 183Appendix 6: Officers and Department Directors of the Bank and IDA 184

Appendix 7: World Bank Offices 185

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The Executive Directors and Alternates

Executive Directors Alternates

Jacques de Groote Tung BilgetEarl G. Drake Edward M. AgostiniSaid E. El-Naggar Saleh A. Al-HegelanErnesto Franco-Holguin Ram6n Martinez-AponteEdward R. Fried William P. DixonJulio C. Gutierrez Eduardo R. ConesaHans Janssen Hans-Dieter HanflandR. A. Johnston Gerald S. AburnYahia Khelif Kwaku Gyasi-TwumThavil Khutrakul Bharat B. PradhanAnthony IJ. A. Looijen Gavra D. PopovidEinar Magnussen Valgeir ArsaelssonSusumu Murayama Fumiya IwasakiM. Narasimham M. Syeduz-ZamanEduardo Pesqueira Oscar G. EspinosaArmand Razafindrab6Giorgio Rota Miguel Martin-FernandezWilliam S. Ryrie Ronald F. R. DeareTimothy T. Thahane A. H. MadingaJacques Henri Wahl Pierre-Henri Cassou

The Executive Directors of theInternational Bank forReconstruction and Developmentand the International DevelopmentAssociation have had prepared thisAnniual Report for the fiscal year July1. 1977 to June 30, 1978, inaccordance with the By-Laws of thetwo organizations. Robert S.McNamara, President of the Bankand the Association and Chairmanof the Boards of ExecutiveDirectors, has submitted thisReport, together with accompanyingadministrative budgets and auditedfinancial statements. to the Boardsof Governors. The Annual Reportsof the International FinanceCorporation and the InternationalCentre for Settlement ofInvestment Disputes are publishedseparately.

June 30, 1978

The Record for Ten Years-1969-78

Amounts in US$ millions

Fiscal Year

1969 1970 1971 1972 1973 1974 1975 1976 1977 1978

World Bank

Operations Approved 82 69 78 72 73 105 122 141 161 137

Loan Amounts1 ') 1,399 1,580 1,921 1,966 2,051 3,218 4,320 4,977 5,759 6,098

Countries 44 39 42 40 42 49 51 51 54 46

Disbursements(2) 762 754 915 1,182 1,180 1,533 1,995 2,470 2,636 2,787

Total Income 410 504 578 646 758 929 1,157 1,330 1,617 1,947

Net Income 171 213 212 183 186 216 275 220 209 238

Total Reserves 1,254 1,329 1,444 1,597 1,750 1,772 1,902 1,916 2,026 2,245

Borrowings: Total 1,224 735 1,368 1,744 1,723 1,853 3,510 3,811 4,721 3,636

Borrowings: Net 698 299 819 1,136 955 990 2,483 2,530 3,258 2,171

Subscribed Capital 23,036 23,159 23,871 26,607 30,397 30,431 30,821 30,861 30,869 33,045

Member Countries 110 113 116 117 122 124 125 127 129 132

Professional Staff 961 1,170 1,348 1,516 1,654 1,752 1,883 2,066 2,203 2,290

IDA

Operations Approved(') 29 50 51 68 75 69 68 73 67 99

Credit Amounts 385 606 584 1,000 1,357 1,095 1,576 1,655 1,308 2,313

Countries 28 33 34 38 43 41 39 39 36 42

Disbursements 256 143 235 261 493 711 1,026 1,252 1,298 1,062

Usable Resources,

cumulative 2,176 3,182 3,343 4,204 7,019 7,433 11,608 11,514 11,789 18,062

Member Countries 102 105 107 108 112 113 114 116 117 120

(0> Excludes loans to IFC of $100 million in FY1970, $60 million in FY1972, $40 million in FY1973, $110 million isn FY1974, 950 million in FY1975,$70 million in FY1976, and $20 million in FY1977. Includes amounts in FY1976 and FY1977 lent on Third Window terms.

(2) Excludes disbursements on loans to IFO.(3) Joint Bankj/IDA operations are counted only once as Bank operations.

Summary and Background of the Year's Activities

The Year in Brief difficulties. and to rising budgetary deficits. Inadjusting to inflation by reducing expenditures,In fiscal 1978, the World Bank, together with and in adjusting to balance of payments dif-

its affiliates, the International Development As- ficulties by cutting back on domestic creditsociation (IDA) and the International Finance expansion, governments have found that counter-Corporation (IFC), made lending and invest- part funds needed for the full financing of Bank-ment commitments totaling $8,749.1 million.(1t and IDA-assisted projects are in short supply;This amount was $1,475.6 million more than in this shortage, of course, affects project imple-fiscal 1977. 2) mentation. The review also shows that disburse-

One hundred thirty-seven Bank loans to 46 ments in certain major sectors, particularly agri-countries totaled $6,097.7 million, a gain of culture, will, for several vears, be somewhat

$339 million over cltue,wil,forievealyeas,1e9omeha$339 million over fiscal 1977. lower than would be expected on the basis ofNinety-nine IDA credits to 42 countries past disbursement experience. "New-style" proj-

amounted to $2,313.0 million, up $1,005 million ects are not only technically complex; they alsoover fiscal 1977. Considerably more resources involve new agencies and institutions carryingwere available to IDA during the year; fiscal out new activities to benefit groups of people1978 was the first year in the three-year period previously considered outside the reach of mostof the Association's Fifth Replenishment Re- government programs. Delays in disbursementssources currently available to IDA for the period can reasonably be expected to fade as borrowersfiscal 1978-80 total $7,731.7 million.,:' and the Bank gain experience in project execu-

The IFC made 41 investments amounting to tion. The Bank is actively seeking advice from$338.4 million in 31 countries. In fiscal 1977, several of its borrowers on how its disbursementthe Corporation's loan and equity investments procedures may be accelerated in the future.totaled $258.9 million. Net transfers of resources by the Bank and

Net income of the Bank was $238 million, IDA to member countries during the year (dis-up $29 million from the previous year. Gross bursements minus repavments of principal, in-revenues totaled $1,947 million, and were at a terest,andothercharges) totaled$1,598million.record high. as against $2,078 million in fiscal 1977.

During the past year, the Bank borrowed Technical assistance activities by the Bankthe equivalent of $3,636 million; a total of 28 continued to increase in fiscal 1978. Technicalissues were offered or placed by the Bank. The assistance was the exclusive purpose of two loansyear's borrowing program had been $4,200 mil- and one credit, for a total of $20.3 million, aslion; of that amount, $600 million was borrowed compared with six operations, amounting tobefore the fiscal vear began in order to take ad- $16.9 million, in fiscal 1977. In addition, tech-vantage of favorable factors in the United States nical assistance components were included ininvestment market. 151 operations, for a total of $230 million, com-

(For further details of the Bank's finances, see pared with 162 operations, for $189 million,the chapter, "Borrowings and Finance" in this in fiscal 1977.A,nnual Report.)

Bank disbursements in fiscal 1978 totaled$2,787 million, up 5.7% over the previous year.IDA disbursements were $1,062 million, a dropof 18%. These disbursements were below ex-pectations. The possible causes for the lower- (" The fiscal year of the World Bank, as well as its two afr)-

liates. runs from Jtily I to .Line 30.than-expected totals are varied, and the weight (2' Since the real valtie of loani contmitmeuits by the Bank andthat should be attached to each is difficult, if IDA is eroded to the extent that cost inflation occtrs overnot impossible, to etermine. A by the the period of disbursements, it is the practice of the Banknot impossible, to determine. A review b the t make allowance for inflation at the time of commit-of the slow gowth rate in ient. The deflator now used to express lending in realBank of the causes of the slow growth rate In terms is a weighted average of the price levels assumed todisbursements indicates that implementation of be prevailing over the period of the execution of a project.

If fiscal 1978 Bank and IDA commitments were to be ex-many Bank-assisted projects has been adversely pressed in terms of 1977 dollars, they would be $7,931affected as borrowing governments have tried million, or 5.7% lower in real terms.

to The use of $3,439 million of this amouint for the extensionto adjust to inflation, to balance of payments of credits is subject to certain conditions (see page 12).

10 Summary and Background

their private sectors-significantly increased itsinvestment activities during the year. The dollar

Note on dollar amounts volume of investment approvals by the Corpora-Dollar amounts used in the text of tion's Board of Directors increased 31% over

this Report refer to current United the previous year to $338.4 million, and theStates dollars. Where Special Drawing number of investments approved increased 21%Right (SDR) amounts are used for the to 41. The greatest part of the increase in thecapital of the Bank and the subscrip-tions and contributions through the number of investments approved was dtie to theThird Replenishment of IDA, one SDR Corporation's accelerated efforts in Africa andequals 1.23953 current United States the Central America/Caribbean region.dollars. In previous Reports, dollar The total cost of IFC projects approved dur-amounts used for Bank capital referred .n to United States dollars of the weight mg the year was $1,871.8 million, raising theand fineness in effect on July 1, 1944 cuLmulative total to S 10,904.4 million.(1944 dollar), while those used for In fiscal 1978. IFC made its first investmentsIDA subscriptions and contributions, ever in five countries: Lesotho. NMali. Swaziland,with the exception of the Fourth andFifth Replenishments. referred to Trinidad and Tobago, and the Yemen ArabUnited States dollars of the weight and Republic. Mali and the United Arab Emiratesfineness in effect on Januarv 1, 1960 joined the Corporation during the vear, bringing( t960 dollar). For all practical pur- total membership to 108.poses, they were the same, and at June The acceleration and broadening of IFC's

United States dollars. operations reflect the increase in its authorizedFor a more detailed discussion, see capital from 51 tO million to $650 million, ap-

Notes to Financial Statements, Appen- proved bv the Board of Governors during fiscaldix G for the Bank and Appendix F 1978. With the additional resources now being

Amade available to it by the capital increase, IFChas embarked on a program to intensify anddiversify its assistance to developing membercoLuntries.

A separate Annual Report, detailing IFC'sThere are no differences in the way IDA operations for the year, is published by the

credits and Bank loans are processed; the same Corporation.standards are used to assess the soundness ofboth Bank and IDA projects. The two institu- Future Role of the Bank; Increase in Capitaltions support projects in the same sectors. Yetthe sectoral composition of Bank loans and IDA In March 1977, when the Executive Directorscredits shows noteworthy differences. Those dif- accepted planning assumptions for commitmentsferences result from the varying economic priori- by the World Bank of $6,100 million in fiscalties of Bank borrowers and IDA borrowers. 1978 and $6,800 million in fiscal 1979, they also

Because the demand for IDA assistance has agreed to make their best efforts to reach analways exceeded the supply of available funds, agreement by June 30, 1978 regarding a Gen-IDA credits are severely rationed; few credits eral Capital Increase. Concomitant with theseare approved to countries with per capita income negotiations. there was to be a discussion of thelevels above $520 (in 1975 dollars). (Guyana future role of the Bank and of the range of finan-was the only country in this category to which cial options needed to support that role.an IDA credit was extended in fiscal 1978.) A It was understood that the decision to acceptchief characteristic of the economies of many a planning assumption for Bank commitmentsof these countries is low agricultural produc- in fiscal 1979 in the amount of $6,800 milliontivity. Thus, some 58% of IDA credits approved was tentative, and that the Executive Directorsin fiscal 1978 were for agrictIlture and rural would not be committed to such a figure if theredevelopment. Bank lending in the sector, on the were no substantial progress on the Generalother hand, was 32% of the total. Middle- Capital Increase by the end of fiscal 1978.income and upper-income developing countries During fiscal 1978, progress was achieved,generally have more industrialized economies through informal discussions, on the subject ofthan do the poorest countries; thus, Bank lending the General Capital Increase. The need for thein the industrial development and finance and Bank to have a General Capital Increase suffi-industry sectors in fiscal 1978 accounted for ciently large so as to permit its lending to grow20% of total commitments. Only 5% of IDA in real terms over the next five years was en-commitments were for such development. dorsed. The Executive Directors will continue

The International Finance Corporation-the their discussions of the future role of the BankWorld Bank affiliate responsible for assisting the and of the appropriate size of a General Capitaleconomic development of its less developed Increase. Against this background, therefore,member cotintries by promoting the growth of the Executive Directors agreed to a commitment

IDA: the Fifth Replenishment 17

Contributions to the Fifth Replenishment of IDA

In niational cuir rencies US5 (equivalent)')Contributor (millions) (millions)

Australia $A 133.764 146.90Additional Contribution $A 8.200 9.0(

Austria S 844.279 49.70Belgium BF 4,582.009 124.60Canada Can$ 470.788 447.90Denmark DKr 515.167 87.80Finland Fmk 156.169 41.00France F 2,063.400 411.30Germany, Federal RepuLblic of DM 2,006.913 838.80Iceland IKr 421.190 22()Ireland L Ir 5.000 8.59

Additional Contribution CI r 0.820 1.41Italy 1-it 262.307.953 295.90

Japan-Ordinary Contribution Y 182.833.200 648.0()

-Extra Contribution Y 40,629.600 144.00)

Korea, Republic of W 484.000 1.((

Kuwait-Ordinary Contribution KD 12.668 43.90

-Extra Contribution KD 39.274 136.10

-Special Additional Contribution KD 5.771 2(0.00

ILuxembourg l uxF 132.386 3.60

Netherlands f. 540.775 216.7(1

Additional Contribution f. 21.461 8.60

New Zealand 5NZ 8.0(( 7.65

Norway NKr 423.714 8(0.60

Additional ContribuLtion NKr 26.285 5.()0

Saudi Arabia SRls 1.227.000 350(.00)

South Africa R 8.696 1(.()0

Spain Ptas 1.444.464 21.00

Sweden SKr 1,239.102 293.80

United Arab Emirates Dh 200.000 5(0.75

United Kingdom £ 473.899 814.30

Additional Contribution f: 0.873 1.5()

United States $ 2,400.000 2,400.0(0

Yugoslavia Din 148.995 8.10

Total ......................... ............................. 7.731.70

') At IMF representative exchange rates of March 14, 1977.

figure of $6,800 million for Bank lending in Executive Directors of the Bank, jointly with the

fiscal 1979. This figure will be reviewed in mid- Executive Directors of the International Mone-year so as to permit the Executive Directors tary Fund, established in August 1977. a com-

to take account of the progress in discussions mittee to study the issue of staff compensation

surrounding the General Capital Increase. in the two institutions. The 15-member com-

Discussions on the Bank's future role, as noted mittee (consisting of five members each from the

in the Bank's A nntal Report for fiscal year 1977, Boards of Executive Directors of the Bank and

will be set against the background of significant Fund, plus five outside experts) is expected to

changes in the size, regional distribution, sec- make its recommendations to the two Boards

toral composition, and character of the Bank's during the first half of the 1979 fiscal year. The

operations-changes that have made the Bank's chairman of the committee is Alexandre Kafka,

operations more responsive to the developmental an Executive Director of the Ftind.

objectives of its member countries. In fiscal

1978, two issues also received attention, both IDA: the Fifth Replenishment

within and outside the Bank, namely those of

human rights and staff compensation. The All four prior replenishments of the Associa-

former has not been formally discussed within tion became effective when donor countries,

the Bank; the latter has. whose contributions aggregated about 80%/c ofIn order to determine what constitutes the the total replenishment, deposited formal noti-

appropriate scale of staff compensation, the fications that they would make the contributions

12 Summary and Backgroand

authorized for them in the respective resolutions. 1977: Continued Growth,In the Fifth Replenishment, however, a different Persistent Problemseffectiveness procedure was agreed to. The FifthReplenishment provided for contributions total- During the year, the Bank continued to mon-ing $7,637,855,000, and was to become effective itor the effects of world economic trends on thewhen donor countries, whose scheduled con- developing countries. By analyzing trends intributions totaled in the aggregate at least $6,000 savings, investment, production, consumption,million, gave IDA formal notification that they exports, and capital flows for developing coun-would pay the contributions authorized for them tries representing about 87% of both the popu-under the Fifth Replenishment Resolution; the lation and gross national product of the de-agreement did permit donors to qualify this veloping countries, the Bank made a generalnotification by making their commitment to pay assessment of the medium-term (to 1985) pros-the second and third installments (but not the pects of those countries following their adjust-first) subject to their obtaining appropriate legis- ments to the mid-decade period of inflation andlative action. The Fifth Replenishment became recession.effective on November 29. 1977. Prior to that The analvsis showed that the effects on thedate, IDA had been able to extend credits under developing countries of the oil price increases,a Bridging Arrangement in which 12 countries of crop failures, and of the recession in the de-made advance contributions, totaling about veloped countries were generaliy less serious,St,300 million. and the adjustment was less painful, than many

In connection with its participation in the had feared. As a group, the developing countriesFifth Replenishment. the United States notified fared better, in terms of real growth in grossIDA that it would pay the amount of $800 mil- domestic product (GDP), than the developedlion (representing the first installment of its con- countries during 1974 and 1975. In humantribution) and that, subject to obtaining the terms, however, even the relatively small de-necessary appropriations, it would pay the re- clines in the growth rates of developing countriesmaining S1.600 million. The notification by the tended to slow down the pace of alleviating theUnited States is thus qualified with respect to conditions of poverty that are so widespread inS1.600 million of its contribution. The Fifth those nations.Replenishment Resolution provides that unless A major conclusion that emerges is that, inunqualified commitments are received covering, general, developing countries have shown anin the aggregate, at least 80% of the second and ability not only to continue their long-term struc-third installments, respectively-a level that can- tural adjustments in the face of the recession,not be reached without unqualified commitments btIt also to ride out fluctuations in the worldby the United States-the Association may not economy. Looking to the mid-1980s, therefore.enter into new credits, disbursements for which the Bank believes that the more rapidly growingwould be drawn from those installments, unless developing countries are likely to be able tothe credits are qualified in a manner whereby maintain their rates of growth, and that somethey become effective and binding on the As- increase of growth can be expected in the slower-sociation only when unqualified commitments growing countries.covering at least 80% of the respective install- A recent updating of the data, based on figuresments have been made. for calendar 1977, tends to confirm these con-

When the terms of the Fifth Replenishment clusions. Preliminarv data indicate that develop-of IDA were agrced upon in Vienna in March ing countries, as a whole, continued to outpace1977. $51.7 million of the total replenishment the industrialized world in terms of economicamount of $7,638 million remained unallocated growth in 1977. The only significant change inamong IDA donors. Since that time, six coun- the medium-term outlook occurred within thetries-Australia, Ireland, Kuwait. the Nether- lower-income developing countries, the statis-lands, Norway. and the United Kingdom-have tics for which are dominated by India. Recentmade additional contributions totaling $45.5 advances in the Indian economy (discussed inmillion. In addition, the government of Saudi detail in the "South Asia" chapter of this AnnualArabia informed the Association in April 1978 Report) promise more rapid growth over theof its decision to increase its contribution to the medium term.Fifth Replenishment by $100 million. As always, the economies of developing coun-

Subject to the qualifications noted, up to June tries were greatly influenced during 1977 by the30. 1978, resources totaling $7,731.7 million (at events in the industrialized countries. ContinuedIMF representative exchange rates of March 14, economic growth in industrial countries acts to1977) are expected to be made available to IDA enhance the prospects in the developing worldfor lending during the period. fiscal 1978-80. for improved demand for exports, higher levelsAgainst this amount, commitments of about of development assistance, and access, by some$2,300 million were made in the first vear of the countries, through migrant workers, to the laborreplenishment period. markets of developed nations. Initial growth,

1977: Continuzed Growvth, Persistent Problems Jo

followed bv stagnation, tends to affect adversely oping countries in 1977 werc small (slightlydeveloping nations more than if economic over 2% ) but widespread. and affccted not onlygrowth were to follow a moderate but steady middle-income countries that are increasingpath. Extra export earnings. for instance, gar- their sales abroad of manufactured goods. butnered by developing countries during an initial many of the poorest nations that export primaryboom period, often do not match the losses in agricultural products, as well. The improvementsuch earnings that occur during periods of slack- reflected upward movements in the prices of aening growth. Thus, an increase of only 3.5% wide range of the exports of developing coun-during 1977 in the real gross national product tries. The available evidence indicates that, in(GNP) of those countries that are members of 1977. US dollar prices of manufactured cxportsthe Organisation for Economic Co-operation rose about 9%c. The aggrcgate price index ofand Development (OECD) -as opposed to 34 commodities (excluding petroleum) roscgrowth of GNP of more than 5% in 1976- by 25%.limited the gains recorded by developing nations The comnmodity price gains were led by sharpduring the year. advances in the prices of beverages (a 72% in-

The slow pace of growth of the OECD nations crease), fats and oils (a 26% increase), andin 1 977 was reflected in a slackening in the some metals. ledc by tin, lcad, and bauxite.growth, by volume, of world trade. In 1976. a Cereal prices, however, retlccting favorablcyear of partial recovery from the recession years weather conditions, and sugar. continued to dce-of 1973-75. world trade increased by 12% in cline. Other foods prices also declinecl, and miostvolume, and by about 14% in US dollar valuc. raw materials priccs, both agricultural and in-In 1977, however, growth in the volumc of dustrial, showdcd only marginal increases fromworld trade was only about 4%. far below the their averagc 1976 levels.post-World War II period average of 7.2%,. But Nominal petroleum prices, on average, rosethe US dollar value of exports from developing a little-around 8'k- in 1977. But oil con1-countries (excluding capital surplus oil export- sumption increased only slightly, reflecting theers) rose rapidly, by about 14%, in 1977. The slowdown in economic activity in the majorexport performance of the low-income countrics oil-importing counltries. particularIly in WVcsternand intermediate middle-income countries cx- Europe. T'he cuLrenlt accoun1t surplus of the 12eceded the averagc, rising 22% and 1 7%, re- largest oil-exporting countrics declirncd hy 5$,400spectively. while that of the upper middle-income million-to just under $30,000 million---becausecountries was slightly less than 10% . The export their imports remained large.performance of the lower middle-income coun- Because many commodities fluctuLatC widclytries was close to the average. in price, most dvceloping countrics arc becoimi-

The continued increase in these values sug- ing increasinglv awarc of the neCCd to puIrsucgests that the competitiveness of developing programs designed to dirci-sify thcir production.country exports is not a transitory phenomenioni. Unfortunately, however. COUlntriCe5 that dependbut is one that is likely to continue-barring on exports of two or threc pro(dLuts are oftenincreases in tra(le barriers. During 1977. how- those that can least afford the uncertainty ol'ever, additional trade barriers imposed by in- fiuctuating market priices. SomC of the pl)ordustrial countries were largely directed against countries in sub-Saharan Africa--where the dif-products such as steel and motor vehicles; thus, ficulties in expanding maiLufaictuired exports arcthey affected other industrial, rather than de- partiCularly grcat--dcpcnd heavily on cxportsveloping. countries. A major exception to this of cocoa. copper. or sisal, who.,c prices havepattern has occurred through restrictions im- been among the most volatile in recent Nears.posed upon exports by developing countries of During the period, 1973-75, for instance. cop-clothing and textiles. Exports of these items per accounted for about 90Yc and 70% of thehave been governed by the Multi-Fiber Agree- exports of Zambia and Zaire, respectively. O'ment, negotiated in 1973, under which quanti- Ghana's exports, 60%.< were cocoa, which alsotative limits on trade can be imposed in each represented nearly 20%Y of the exports of Benin(lefined subcategory for each pair of trading and Togo. Almost 60%c of total sisal exportspartners. A new agreement, negotiated at the came from Africa-primarily from Angola,end of 1977 for the period 1 978-82. is more lIesotho, and Tanzania. Such dependence on arestrictive than the old one, and, in addition, it very few export products whose prices varyis being applied to many more countries, includ- widely means that a country's balance of pay-ing those that arc not vet major exporters. While ments position will be particularly vulnerable tociting a notional guideline of 6% annual growth the vicissitudes of the international market. Itsfor all exporting countries taken together, it ability to plan long-term development programsleaves considerable scope for the importing can thus be seriously impaired.countries to set lower limits through bilateral Trade improvements in 1977 in developingnegotiations. countries were accounted for by increases

Improvements in the terms of trade of devel- in both primary and manul'actured exports.


Although figures relating to growth in manufac- modest rise in the aggregate current accounttured exports by the developing countries are deficit would not be unduly high in real terms,still lacking, larger-than-average increases in and that an increase could be viewed as a re-export values registered by countries in 1977 turn to traditional levels after sharp fluctuationssuch as Korea and Mexico (around 18% and above (1975) and below (1977) the norm.20%, respectively) suggest that exports of manu- One problem returned during 1977 after afactures expanded at a fast rate. decline over the past three years: a resurgence

The percentage increase in import values of of inflation. The return was widespread; of thegoods by the nonoil developing countries was 88 nonoil developing countries for which con-exceeded, for the second straight year, by that sumer price indexes are available, 50 showedof exports. Nonetheless, trade deficits for 1977 higher inflation rates than in the year before.totaled $12,700 million. This deficit was more In 1976, 62 countries experienced lower ratesthan $3,000 million less than in 1976, and was of price increases than in the previous year.but half the 1974-75 average. Import growth Excluding certain Latin American countriesin 1977 was especially strong, however, in lower- with atypical inflation rates, the weighted aver-income and lower middle-income countries. Im- age rate of inflation was 21% in 1977, up sixport demand in those countries was stimulated percentage points from 1976.by the fact that imports had been contained in The Bank's overall studies of developingthe previous year to reduce heavy trade imbal- country economies in 1977 point to the fact,ances recorded in 1974 and 1975. therefore, that, on average, recovery from the

Since 1975, rapidly increasing export earn- recession years of 1973-75, begun in 1976, con-ings by developing countries, coupled with only tinued, and that prospects for 1978 are likelymoderate growth in imports, has helped reduce, to be unchanged. But the continued growth ofto a remarkable extent, current account deficits developing country economies is a fragile one,of many nonoil developing countries. During and aggregate figures obscure the fact that many1975, when the worldwide recession was at its social and economic problems cannot be elim-height, and when adjustment measures taken in inated by rising commodity prices, reduced cur-the wake of increasing petroleum prices had rent account deficits, and expanding trade.only begun to be formulated, the aggregate cur- Agricultural production remains barely aheadrent account deficit of all nonoil developing of population increases, and despite gains in pro-countries rose to a record $37,300 million. In ductivity through improved agricultural prac-1976, the deficit dropped by almost $12,000 tices, food production is still largely hostage tomillion; this downward trend continued through the vagaries of the weather. Employment has not1977, and the aggregate deficit was reduced to kept pace with the expansion of the labor force,522,000 million. This is about the same propor- even when growth in output has been impres-tion of GNP as in the early 1970s. sive. Rapid urbanization-growth rates of more

Further reductions may be difficult to achieve; than 5 % yearly in the population of cities aredata for early 1978 suggest that import expan- not uncommon-raises difficult problems, notsion may well catch up with export growth, and the least of which is the need for sizable in-that a reversal in recent terms of trade improve- creases in infrastructure investments in housing,ments may push the trade deficit of the nonoil roads, schools, and public utilities. Absolutedeveloping countries higher once again. A fall poverty in the developing world remains anin beverage prices in 1978-data for early 1978 immense problem, especially in the low-incomeshow a fall in those prices from 1977 levels- countries of Asia and sub-Saharan Africa.would, for instance, have a particularly strong The alleviation of poverty and the provisionadverse effect on the trade balance of the of an environment that can help ensure the pros-upper-income and intermediate middle-income pects of growth in developing countries cannotdeveloping countries. A modest rise in the aggre- be brought about or provided for by the de-gate current account deficit is not likely to veloping countries alone, even though the mostcreate widespread difficulties in these countries, lasting effect of the economic shocks of thehowever. mid-1970s is likely to lie in the policy improve-

Analysis of recent and prospective financing ments-in the developing countries, themselvesflows suggests that available receipts of capital -they engendered. But projections of futureand aid could cover a $30,000 million aggregate growth are modest indeed-especially when ac-deficit on current account without visible strain. count is taken of population increases-andIndeed, in both 1976 and 1977, some countries those modest prospects can only be assured ifwith ready access to capital markets were able the long-term trend towards closer internationalto borrow abroad substantially more funds than relationships among developed and developingthey needed to meet their collective current ac- countries continues.count deficit; as a result, they added the differ- The relationships need not lead to an environ-ence to their reserves. Analysis also suggests ment characterized by competitive confronta-that, after allowing for growth and inflation, a tion. Developed countries have, in the past, been

Increased Trade and the World Economy 15

supportive of development. Through the main- nomic relationships among nations is to stimu-tenance of a liberal international trading system, late further trade relationships between indus-through improvements in the transfer of re- trialized and developing countries. The Worldsources (in the form of official development Bank has always attached great importance toassistance, and from international capital mar- the growth of exports from developing countries,kets and international financial institutions), by for the experience of the last decade has con-international action to support the expansion of firmed that exports can be a dynamic factor inenergy resources, and through continued inter- overall growth. Countries that have been suc-national support for an expansion of agricultural cessful exporters have seen their economies growresearch (so necessary to sustaining increases in as well. Furthermore, a rising export trend canagricultural productivity), a general climate of form the base on which the ability of develop-economic dynamism, needed to bring about ing countries to borrow and service debt can rest.changes in the social and economic structure of Liberalization of trade-especially trade ofdeveloping nations, can be built up. manufactured goods-is only one aspect in the

overall issue of trade that is of particular in-terest to the developing world. For those de-

Increased Trade and the World Economy veloping countries that export industrial rawIf the world has learned anything from the materials, and for those that export tropical

lessons of the past five years-increased energy beverages and fruits, for instance, the main con-prices. wide and sudden fluctuations in the cern is price stability (a subject that will beprices of certain commodities, recession, infla- discussed early in fiscal 1979 by the Bank, andtion, and foodgrain shortfalls-it is that the in September 1978 by the Development Com-future prosperity of the developed and develop- mittee); for those that export agricultural rawing countries have become linked, and that the materials, the foremost problem is competitionlinks, though recently forged, are not likely to be with man-made fibers and synthetics; for de-broken easily. veloping countries dependent on the export of

These recent events have raised the conscious- temperate zone agricultural products, on theness of the world about the need to maintain other hand, the major issue is the existence, instable trading relationships. When petroleum industrialized countries, of domestic price sup-prices suddenly increased in October 1973, for port policies that aid domestic production.instance, developing countries, endeavoring not For developing countries exporting manufac-to cut back on their development programs, the tures, however, liberalization of trade is a keyhigher cost of oil notwithstanding, turned to issue. The number of countries involved in thiscommercial banks to help finance much of their trade has grown as fast as the international pat-capital needs. At the same time, they expand- tern of comparative advantage has changed. Aed their exports, particularly of manufactured decade ago, there were no more than a halfgoods. This expansion enabled them to service dozen developing nations exporting an appre-their increased debt; their foreign exchange ciable amount of manufactured goods. Today,earnings also increased considerably. As a re- their number has increased fivefold.sult, these countries became important markets An increasing volume of exports of manufac-for the industrialized countries. And, to the tures from the developing world has often beenextent that developed countries recovered from accompanied by stagnation of output and de-the recession of 1974-75, the recovery was led clining employment in corresponding sectors inby exports to developing nations. Today, an some industrialized countries. Though this proc-estimated 28% of total manufactured goods ess is one that economic history and theoryexports from industrialized countries go to de- would lead one to expect, it has been occurringveloping countries. at an unprecedented speed, and the frictions and

These links-and there are others as well: defensive responses arising in this vast restructur-the orderly international movement of labor, ing of the world economy are, therefore, notfrom the Mediterranean basin to Europe, from surprising.Mexico and the Caribbean to the United States, Against this background, it should be notedand from developing countries on the periphery that current trade barriers imposed by industrial-of the Middle Eastern oil-producing nations to ized countries-even against finished manufac-those countries, for instance-should not be tures-are, by historical standards, remarkablyseen as a threat to the economic well being of low. Thus, export promotion policies by manyeither industrialized or developing countries. developing countries, coupled with the loweringRather, increasing economic links can be a of trade barriers, have led to the rapid growthsource of strength to both groups and can pro- of manufactured exports from developing coun-vide opportunities for more rapid worldwide tries-at rates of around 15% yearly in realeconomic advancement. terms from the early 1960s to 1976. However,

Among those measures that might be taken increased exports to industrialized countries withto reinforce the movement towards better eco- stagnating economies are resulting in a rise in


protectionist sentiments in developed countries. Bank and IDA:In a few cases, quantitative import restrictions Lending to Countries withto aid domestic industries threatened with, or Annual per Capita Incomesuffering injury have actually been introduced. below $280,') 1970-78An example of this is provided by the new (US$ millions. Fiscal yers.)Multi-Fiber Agreement that was negotiated atthe end of 1977 (see page 13). The effect of IDA Total

that agreement may severely reduce exportgrowth of clothing and textiles of not only the -major exporters, but also of the smaller, poorer,and less advanced developing countries wheretextile products usually comprise a large shareof manufactured exports.

As a result, developing countries are becom- 3000

ing increasingly concerned about the ability ofpolicymakers in the industrialized world to -

withstand pressures for the imposition of newquantitative restrictions.

The most important way in which developed -

countries can currently contribute to trade ex-pansion by developing countries is to refrain 2,500

from introducing new quantitative import re-strictions and to clarify and tighten rules re- -garding "safeguard" or emergency use of suchrestrictions. Other measures that, in theory, -could be taken bv industrialized countries would -

be harder, in practice, to adopt. Though studiesindicate that it takes about $20,000 worth of 2manufactured imports to displace one worker 2000 -: -

in the developed countries, and that increased _exports to developing countries can create many V,of the jobs that WLould be lost through increased -

imports, such shifts do give rise to the need for -

adjustment assistance to displaced firms andworkers in developed countries.

Even in the absence of further measures taken 1,500

by developed countries to liberalize trade withdeveloping nations, there are steps that the latter =group can take to increase its share of world -

trade. _

Developing countries freqtiently discriminateagainst their own exports through a combination -

of measures that, for instance, encourage the 1l000 - -.protection of not-so-infant "infant" industries, C DCovervalue exchange rates, and that foster pur- - -

chases at artificially low prices. An increasing -

number of developing countries have, however,systematically begun to adjust their exchangerate and trade policies so as to eliminate or re- -

duce a bias against exports. Strong moves to- 50owards liberalization have been made recentlyin countries-Argentina and Chile, in particular -

-that used to be prime proponents of high -

protection. It will be more difficult to reduceprotective measures in developing countries thanin the industrialized world; substantial liberal- -

ization would, in the short run, cause serious 0disruption of employment and to the balance - 197of payments positions of many countries. Con- Annualsiderable adjustment assistance would, there- Averagefore, be required-particularly for the poorestcountries. (111976 dollars.

Agricultire and Rural Development 17

Bank and IDA: Trends in Lending, by Sector(USS millions. Fiscal years.)

1976 1977 1978

Bank IDA Total Baniik IDA Total Baniik IDA Total

Agriculture andrural development 1,209.2 418.4 1,627.6 1,637.8 67-0.1 2,307.9 J,929.0 1,340.7 3,269.7

Education 244.9 76.4 321.3 210.1 78.5 288.6 268.9 83.0 351.9Energy 49.0 - 49.0 150.0 - 150.0 - -

IndLustrial developmentand financc 697.1 64.0 761.1 730.7 25.5 756.2 829.5 80.4 909.9

Industry 501.0 105.0 606.0 570.8 16.0 586.8 364.8 27.0 391.8

Noinproject 75.0 354.0 429.0 126.5 90.0 216.5 80.0 75.0 155.0

Population anidnutrition 25.8 - 25.8 42.5 4.8 47.3 25.0 33.1 58.1

Posscr 690.3 259.0 949.3 784.5 167.0 951.5 900.0 246.2 1,146.2

Technical assistance 13.0 19.0 32.0 1.5 15.4 16.9 JI.0 9.3 20.3

Telceommiinications 59.0 5.2 64.2 140.0 - 140.0 153.6 67.5 221.1

Tourism 21.0 10.0 31.0 98.6 - 98.6 50.0 - 50.0

Tranisportation 1,065.7 256.2 1,321.9 875.6 172.0 1,047.6 918.1 174.8 1,092.9

Urban development 79.6 - 79.6 128.2 30.0 158.2 222.4 146.2 368.6

Water supply anidsewerage 246.5 88.1 334.6 262.5 38.2 300.7 345.4 29.8 375.2

Total 4.977.1' 1,655.3 6,632.4 5,759.3r2 1,307.5 7,066.8 6,097.7 2,313.0 8,410.7

Details mav not add to totals because of rounding.I) Inc.Lldes 8477.8 million lent on Third W,ndow terms."' Includes 8222.6 million lent on Third Window termias.

If developing countries accelerate their ex- agriculture (including rural development effortsport promotion policies and if the industrialized directed toward low-income farmers) of $4,400nations refrain from creating new trade barriers, million in real terms over the quinquenniumthe economic effects for the former group could 1974-78 (representing more than a 40% increasebe considerable. It has been estimated that by over the previous five-year period), or some 20%1985, for instance, the value of exported manu- of total projected lending. Moreover, as thefactures from the developing countries could President pointed out in his address, "withoutrise by as much as $21,000 million, and could rapid progress in smallholder agriculturegrow by some 15% yearly. throughout the developing world, there is little

For many countries, added exports could be hope either of achieving long-term stable eco-expected to help break through balance of pay- nomic growth or of significantly reducing thements constraints holding back their overall levels of absolute poverty." Thus the Presidentdevelopment; increased exports could also have further proposed that an increasing share of thea significant impact in increasing employment. Bank's agricultural lending be devoted to pro-

Developed countries, on the other hand, must grams directly assisting the small farmer to be-realize that moves in the direction of specializa- come more productive. About 70% of thetion and comparative advantage are inexorable. Bank's agricultural loans might contain a com-Creation of artificial barriers can only delay- ponent for the smallholder farmer, Mr.not stop-the process. Self-interest on both sides McNamara added.dictates, therefore, that measures be taken to Five years after, what have been the resultsallow the workings of a world economy to move of this redirection in Bank activity, and specifi-gradually but steadily, rather than convulsively, cally, to what extent have the targets been met?towards the inevitable outcome. What has been the Bank's experience in project

implementation with the "new style" projects

Agriculture and Rural Development and project components directed towards the im-provement of small farmer productivity and

It is now five years since President Robert S. income? Lastly, and most important, whatMcNamara's major address on poverty and rural broader changes have occurred to alter thedevelopment, given at the 1973 Nairobi Annual prospects for agricultural and rural develop-Meetings of the Board of Governors. On that ment, and with what impact on the perspectiveoccasion, he set a target for Bank lending to and emphasis presented in Nairobi five years ago?


The record of the Bank in relation to the improved design and effectiveness.Nairobi targets is relatively easy to describe. All The number of beneficiaries from the agri-the targets set have been achieved. In the period, cultural and rural development projects is likelyfiscal 1974-78, lending by the Bank and IDA to be substantial. As estimated at the time of ap-for agriculture and rural development amounted praisal, total agriculture lending during the five-to some $10,020 million for 363 projects, equiv- year period, fiscal 1974-78, is expected to helpalent to $5,950 million in terms of the 1973 increase the incomes of over 19 million farmvalues used for the Nairobi targets. Thus, the families, or about 115 million individual mem-Nairobi target figure of S4,400 million was con- bers of such families. Through the 88 agriculturesiderably surpassed, by some 35%. Moreover, and rural development projects approved inlending for agriculture and rural development fiscal 1978 alone, some 28 million of the over(in real terms) was almost doubled relative to 43 million direct beneficiaries are estimated tothe earlier quinquennium, fiscal 1969-73. In the belong to the target group of rural poor. Itpast year, fiscal 1978, such lending involved should be recognized, though, that these esti-88 projects, accounting for S3,270 million and mates are subject to a wide margin of error, andexceeding, by a considerable margin, the record that there is considerable variation from oneset in the previous year, fiscal 1977, when $2,308 project to another, both in the amount and themillion was lent for 84 agricultural projects. spread of benefits accruing to farm families,

The results as regards the orientation of lend- depending on the design and type, as well asing towards the smallholder group are also highly project size and country circumstances. Broad-encouraging. At least 75% of the 363 projects ening the impact of Bank lending through theapproved during the five-year period contain a design of the projects themselves, as well assmall farmer element or component. Moreover, through an expanding volume of lending, is anof the total volume of agriculture and rural de- important consideration. In recent years, thevelopment lending during fiscal 1974-78, over Bank has been able to identify and assist increas-50% is accounted for by 210 rural development ing numbers of projects whose real cost perprojects which, by the Bank's definition, are beneficiary is relatively low.those projects in which more than half of the Ultimately, of course, the Bank's performancedirect benefits are expected to accrue to the rural in this sector, as in others, is to be judged not bypoor. Thus, assistance to small farmers has ac- the anticipated success or impact but by projectcounted for the major share of lending in this performance and observed impact.sector. In fiscal 1978, 49 rural development Because the vast majority of the "new style"projects were approved for a total of $1,728 projects initiated during this period are still un-million, or 53% of total agriculture and rural der implementation, and because the projectsdevelopment lending in that year. The corres- themselves are designed to generate progressiveponding proportion in fiscal 1973 was 26%, improvements over a relatively long time hori-and was only 22% for the five-year period, zon-10 years to 12 years, in most cases-the1969-73. A significant shift in the orientation of available evidence of project impact is thus farBank lending towards the small farmer has, limited. But a fair measure of success appearstherefore. been achieved. to have been obtained with the few early projects,

One much discussed question when the new especially in those cases where a well-definedorientation of lending for small farmer develop- technical basis for improved agriculture, and ament was proposed, was whether a sufficient delivery system for inputs to farmers was wellvolume of projects could be identified that would established (a situation most often found in irri-meet the Bank's standards of economic and gated areas or for permanent crops in schemesfinancial return. Another question was whether involving agricultural intensification). More dif-the interest and commitment among member ficult cases are those where the natural resourcecountries to this type of project would be suffi- base is poor, e.g., in semi-arid areas and inciently great for the lending targets to be realized. tropical areas with depleted soils, where theThe record indicates that those concerns were technical packages are either poorly developedgenerally exaggerated. Moreover, in a number or unknown. The lack of a proven set of tech-of cases, building on the early experience with an nical recommendations often goes hand in handinitial rural development project, it has proved with extremely weak delivery systems, local in-possible to develop a series of related "second stitutions, and rural infrastructure, thus com-generation" projects, often through state or pounding the problems. It is in this type ofregional authorities and, in some cases, through project that the probability of error in projecta comprehensive national program. The in- design is greatest, that delays in project imple-creased scope and larger scale of these "second mentation are most likely to occur, and that thegeneration" projects are one important aspect danger of ultimate failure is more apparent. Theof the continuing expansion in lending in this Bank is moving carefully in respect of suchsector; these more recent projects incorporate projects. Some technical assistance or pilot de-the early lessons of experience, resulting in velopment projects have been supported, and it

Agricuiltrue a7nd Rutral Developntent 19

may be that these types of projects will need tobe given greater emphasis in the future lending Agriculture andprogram to meet the needs of marginal areas. Rural Development,Research components, designed to further de- Lending 1974-78velop and adapt the technical base of knowledge (US$ millions. Fiscal years.)

to the local environment, are included in more (00) Number of Operations

than half of the agricultural projects, and a num-ber of recent projects provide more comprehen- Agriculture and Rural Developmentsive support for research systems and programs _ Rural Development only

at the national level.An important general factor in project per- -

formance, especially in those projects that are of = -

an essentially pilot or experimental nature, is a 3__0 °°

measure of flexibility in project design that al- °lows for revisions to be made in the course of __

project implementation. This finding underlinesnot only the need for adequate preparation of 2,500

rural development projects, but also the criticalimportance of high-quality management and =administration, particularly during the early 2____ 00years of implementation. In a number of coun- otries, Bank staff, working closely with govern-ments, have established or strengthened aninstitutional framework for project implementa- 1500 XLO LO_

tion, forming the basis for a wider approach with - °°- cosubstantial impact beyond the projects them- - IIselves. These new arrangements may involve a _=

closer degree of cooperation between line _ _0agencies than has been attained in the past, = u__Iresulting in a better understanding of the com-plex needs of rural populations and a more ap- s50 _propriate sequencing of developmental activities. __

Technical assistance may be provided to expand it- E _

or strengthen project management. Formal and _informal training schemes are an important part °of many of these projects and the discipline 1974 1975 1976 1977 1978and challenge of working towards well-definedobjectives and to given schedules are themselvesvaluable forms of training and skill upgrading.

But although a beginning has been made inthe task of improving the local institutionalcapability to assist the small farmer to improvehis productivity and income, the challenge is a this crucial problem, but much remains to belong-term one and much remains to be done. understood and further tested.The Bank's early experience also serves to indi- The third question posed related to the globalcate a number of instances where, with hind- prospects for agriculture and rural develop-sight, project design and the pace of implementa- ment; have these changed significantly sincetion have been too ambitious, resulting in delays Nairobi and, if so, how?and shortfalls from original expectations. Learn- The world situation of today has improveding from the experience of failures, as well as in both developed and developing countries sincesuccesses. is an important aspect of projectwork, the general food crisis of 1974. World food pro-which the Bank is attempting to capture through duction has increased during the past threeefforts to develop and strengthen the monitoring years, and stocks in food-exporting countriesand evaluation of project performance. Among have reached high levels. Nevertheless, the im-the more difficult aspects is the establishment provement should not obscure the fact that whileof systems within which small farmers can them- the food crisis has temporarily abated, it has notselves have a say in how programs are designed been eradicated.and implemented, and how their skills, expert Recent general improvement masks wideknowledge of the local farming environment, regional variations. The Food and Agricultureand their capacity to help themselves can be fully Organization of the United Nations (FAO) esti-integrated into an overall effort. The Bank is in- mates that world food production, which isvolved in a number of innovative approaches to dominated by the output of grains, expanded

20 Summary and Backgrouind

by about 3% in 1975 and 1976, but only 1.4% that pointed to improved economic and socialin 1977. Production in developing countries conditions as a factor of prime importance in theduring 1977 was up 2%, a rise due, in large effort to reduce population growth rates throughpart, to the 4% increase registered in India. Mid- lower birth rates.dle Eastern and African production of food in- The diagnosis presented at Nairobi has suf-creased not at all from 1976 levels, and increases fered few challenges; regrettably, there is everyin Latin America held at I %. These figures indi- indication that massive rural poverty, sustainedcate that per capita food production in all de- and spurred on by an increasing rural popula-veloping regions except for Asia has declined, tion, limited land resources, and inadequate sup-and that a particularly difficult situation exists porting systems, is a continuling feature in mostin Africa, where, according to the FAO, the of the Bank's member countries.1977 per capita index is 10% below the level Valid still are the measures outlined by Presi-of the period, 1961-65. dent McNamara as necessary elements in seek-

Projections based on data compiled by the ing solutions to the poverty problem-land andFAO for production and consumption indicate tenancy reform, credit, water supply systems,that, by 1990, food deficits among the develop- extension, training and rescarch-and "newing countries could rise to between 120 million forms of rural institutions and organizations thattons and 145 million tons, up a minimum of 80 will give as much attention to promoting themillion tons over 1975. It is estimated that Bank- inherent potential and productivity of the poorassisted and IDA-assisted agriculture and rural as is generally given to protecting the power ofdevelopment projects will result in additional the privileged."production of 13 million tons of cereals annually But, associated in part with the wider impactby the late 1980s, or only about 10% of the of the Nairobi speech, the past few years haveprojected deficit. secn a greater emphasis on poverty problems and

To what extent will developing countries be an expansion of national and inter-national effortsable to import this amount of food on com- (for example, those of the UN family of agenciesmercial terms? and newer agencies such as the International

At one end of the spectrum are the OPEC and Fund for Agricultural Development) focused onsome more developed Asian countries with sub- the rural poor. Like the efforts ur.dertaken withstantial manufacturing and export earnings. Bank support through its agriculture projects,Through those earnings, they should be able to many of these other newer initiatives are vet toimport the 30 million to 35 million tons of food be fully evaluated in terms of impact, and, forthey are expected to need by 1990. most, the fruits are yet to coICe. The impetus to

Similarly, middle-income, non-OPEC coun- rural development remains small and patchy intries of the Middle East and Latin America relation to the scale of the problem; but a begin-should be able to buy on commercial terms the ning has been made, and the expericnce acquired20 million to 25 million tons of food that they will be valuable to governments in tackling themay require by 1990. many formidable challenges still ahead.

The real core of the world's food problemexists among the low-income, food-deficit coun-tries of South Asia and Africa, where two-thirds Mineral and Fuel Developmentof the population of developing countries lives.Though their present food deficit is small-only A continuing supply of both nonfuel minerals12 million tons in 1975-it could rise to as much and sources of energy is critical to the healthas 80 million tons by 1990. When such projected of the world economy. Their exploitation is ofdeficits are compared with the projected foreign particular importance to those developing coun-exchange earnings of these countries, there is tries in which they are found. Nonfuel mineralslittle prospect that this amount of food deficit can be a major source of foreign exchangecan be secured on commercial terms. earnings and domestic revenues. They can also

The consensus is, therefore, that these coun- serve to stimulate development in other sectors.tries must grow their additional food on their The importance to developing countries of cut-own soil, and that hard policy decisions need to ting back imports of petroleum products isbe taken to make that possible. obvious; virtually all developing nations have a

The food and agricultural development prob- strong incentive to develop indigenous sourceslems faced by many of the poorest developing of energy as rapidly as possible. During the pastcountries was one factor that led to the emphasis fiscal year, the Bank's lending policies in bothon rural development in the 1973 Nairobi these fields were assessed, and were modified tospeech. The small farmer is a critical element as fit better the needs of the developing countries.a producer of foodgrains and other food prod- Substantial changes in the existing lending pat-ucts in many major food-deficit countries. A terns will have to be looked at, however, insecond factor was the fact that there existed still connection with the available resources of thea tentative, but expanding, body of evidence Bank.

Minteral and Fuel Development 21

Nonfuel Minerals. The views of developing total project costs, but it may vary substantially.countries and private foreign investors on how to The estimate of gross investments requiredexploit mineral resources have tended, in recent in the mineral sector in developing countries foryears, to diverge rather than come together. the period 1976-85 runs as high as $95,000 mil-Developing countries that possess reserves of lion. As much as two-thirds of this amount mayminerals have shown increasing dissatisfaction have to come from foreign private sources.with the "enclave" arrangements that were typ- There is a consensus in the industry that unlessical in the past. Their claims for a greater voice expenditure on new mining capacity begins toin decisions concerning the exploitation of min- accelerate soon, supplies of some essential min-eral resources and for a more balanced sharing erals will fali short of demand in the I 980s, sinceof the economic and social benefits to be derived it takes 1 0 years or more to develop a new mine.from mining ventures are coming to be gencrally At present, the prospects for increased invest-recognized. But foreign mining companies and ment in this sector are clouded by the depressedinvestors have hesitated to commit large funds to state of the market for most minerals. It may bemining ventures located in countries that appear another year or two before the effects of thepolitically unstable or where there is a serious present oversupply wear off and investors arerisk that the terms of investment agreements may willing to consider new ventures.be changed by the host government. Uncertainty In the near term, the Bank expects to assist inon this score is perhaps the main reason whv the financing of two to three projects a year, andmineral investment, particularly equity invest- to double this number as soon as the demand forment, during the last two decades has taken place minerals has revived. For the reasons mentionedlargely in developed countries. earlier, the Bank's loans and credits for mining

International financial institutions-the World projects will be associated with much larger vol-Bank, IDA, and IFC, together with the regional umes of investment, both foreign and domestic.development banks-can help bridge the differ- Fuels. The case for increasing Bank assistanceences between producing countries and foreienences between producing countries and forein min the development of energy sources-primarilymining concerns by providing an international

.presence in mining ventures. Agreements gay- petroleum, natural gas, and coal-is more press-.t . ~~~~~~~~in(y than that for nonfuel minerals, and applies

erning projects in which one of the international to many mort countries.financial institutions is an active partner aremore likely to be regarded as fair by all parties Until recently, the Bank has not financedand, therefore. to endure. In this way, foreign projects involving petroleum production for twoinvestment-particularly risk capital-should main reasons: before 1973. petroleum produc-become more readily available for mineral pro- tion in most developing countries was uneco-duction in the developing countries than it has nomic at prevailing international prices, andbeen in the past. supplies from low-cost sources, mainly in the

in practice, the World Bank's role as an "ac- Middle East. were increasingly abundant; on thetive catalyst" would be: other hand, where the economic justification was

-To help prepare projects and provide assist- not in doubt, private finance was usually readilyance at an early stage. Such preparation is available. After the dramatic increases in petro-needed, for mining projects, which typically leum prices from the end of 1973, which sub-involve a web of interrelated technical, financial, stantially improved the economies of productionlegal, and commercial arrangements, are among from higher-cost sources, the Bank began to re-the most complex and costly in the world. By its view its lending policies for energy development.involvement, the Bank could be in a position to Studies recently carried out by the Bank showhelp all parties arrive at agreements that are that:both fair and that have a reasonable chance of -Some 50 to 60 oil-importing developingbeing observed or of being renegotiated under countries have a potential for producing oilagreed rules; and to encourage the parties to and/or gas. Only 14 are producers now.agree on suitable arrangements for the settle- -Current oil prices justify the explorationment of disputes, including, where appropriate, and development of many areas previously con-recourse to ICSID; sidered uneconomic.

-To provide assistance to developing coun- -The benefits of more intensive petroleumtries in determining their resources, in planning development in oil-importing developing coun-a strategy for resource exploitation, and in ob- tries would be substantial.taining technical expertise to design, implement, -Most of these countries, however. lack notand operate mining ventures. only the necessary technical skills and financial

In order to carry out these functions, and to resources to develop their potential, but also, themaintain an "effective presence," the Bank must experience to plan a strategy for the sector. Theybe willing, however. to contribute a significant need advice in deciding what technical exper-share of the financing of nonfuel mineral proj- tise to employ, and how to use it to the bestects. This share might average about 15% of advantage.


On June 30, 1977, the Bank made its first loan an area best left to risk capital, the Bank's role-of $150 million, to India for the development in this area would be a minor one, at the margins,of the Bombay High offshore field-for oil and and only in special cases: for geological, geo-gas exploitation. Earlier in the same month, gov- chemical, and geophysical reconnaissance, andernments represented at the Conference on Inter- for better appraisal of promising discoveries.national Economic Cooperation (CIEC) invited Emphasis on oil problems should not obscurethe Bank to expand its participation in develop- the fact that oil comprises only one dimensioning countries, particularly in energy-importing of the energy requirements of the developingdeveloping countries, in order to assess the cap- countries. New initiatives and expenditures inital availabilities for investment in energy explor- petroleum development must not be undertakenation and development. The Conference also to the detriment of coal, hydro, geothermal, etc.called on the Bank to act as a catalyst to induce development where feasible; nor must invest-additional flows of capital into energy developments in hydro, thermal, and geothermal powerment. Later in the same year, a new Petroleum generation be neglected in a rush to implementProjects Division was set tIp within the Bank's new oil projects. Bank and IDA investments inEnergy, Water, and Telecommunications De- power generation-beaun in 1948 by the Bankpartment in order to expedite better the requests -have totaled, to date, almost $10,000 million;of member governments for assistance in the where comparative advantage in this field exists,energy sector. During fiscal 1978, the Bank sent investments will continue.missions to more than a dozen developing coun- The Bank has also begun to reappraise tradi-tries to identify and prepare projects aimed at oil tional noncommercial energy sources that stilland gas production. supply about one-half of total energy in develop-

The trend, therefore, in Bank activities in the ing countries, and more than 85% of energysector is an upward one. But questions remain: used by the 2,200 million people in the ruralhow fast and to what extent can the Bank ex- areas in these countries. A large potential existspand its operations? And what should the Bank's for maintaining, or even increasing, the exploita-main role be in helping finance projects in the tion of energy sources in rural areas with con-sector? siderable economic, social, and environmental

As in the case of nonfuel minerals-only more advantages. This would not require sophisticatedso-the Bank can hope to finance only a small new technological developments, but, rather, aportion of the financial needs in the sector. Over straightforward application or adaptation ofthe next decade, it has been roughly estimated basic expertise that usually exists in the develop-that total financial requirements for petroleum ing countries. Rural development and infrastruc-development (covering both energy exploration, ture projects being assisted by the Bank areproduction, and downstream facilities) in the oil- giving special attention to energy: e.g., the pro-importing developing countries will be on the duction, processing, and utilization of firewoodorder of about $6.000 million a year (in 1975 and agricultural and animal wastes. Fuelwooddollars). Most of the funds will have to come components are included in 14 out of 34 Bankfrom foreign investors and the producing nations; forestry projects, and in 11 out of 22 ruralinternational financial institutions such as the development projects with forestry componentsBank would need to contribute only so much approved or planned during fiscal years 1976-80.as to permit them to assume the responsibility In a number of projects, the Bank has encour-for appraising and supervising projects and help- aged its member governments to recognize theing producing nations marshal the total funds importance of these sources of energy. In addi-required, including co-financing with other ex- tion, the Bank has given financial support for theternal agencies. Thus, in this sector, too, the development of low-cost devices appropriate toBank's major role would be a catalytic one. local conditions: e.g., to make practical use ofToken loans would be sufficient to ensure an solar energy in the Bolivian Altiplano; to im-adequate international presence in projects with prove the efficiency of the earthen charcoal kilnsa high potential for profit; in other cases, a used by Philippine smallholders; and to improvesubstantially larger share of project financing by the efficiency of cooking stoves in severalthe Bank might be required. countries.

Since the Bank's entry into the petroleumsector is comparatively recent, the appropriate Nonfarm Employment and Rural Activitiesscale of lending cannot be predicted with con- The Annual Report for fiscal 1977 noted thatfidence. Based on project identification and the Bank was prepared to give increased atten-preparation work carried out to date, however, tion to the development of small-scale enter-it may be expected that the Bank's lending pro- prises (SSEs) in the knowledge that SSEs cangram for oil and gas production could reach often make efficient use of relatively abundantS500 million for as many as eight projects labor resources and that the jobs created gener-annually from fiscal 1981 onwards. ally benefit both the urban and nonfarm rural

Because financing of exploration activities is poor.

Non farm Employment and Ruiral Activities 23

Infiscal 1978,attentionwasdirectedintheBank realized through the efficient expansion of com-to the role that rural enterprises can play in pro- paratively labor-intensive activities. Becauseviding for nonfarm employment opportunities. rural nonfarm activities seem to combine all

The percentage of the rural labor force that is those elements necessary for spreading the bene-today primarily engaged in nonfarm work(') is fits of development to lower-income groupsa significant one-between 20V% and 30%c, and through growth in employment and wages. theyit is increasing rapidly-especially in those coun- deserve close attention when development poli-tries that are in the earlier stages of develop- cies that emphasize the alleviation of povertyment. In Africa, for instance. rural areas and are formulated.towns provide over two-thirds of all nonfarm Should development assistance bc extendedemployment opportunities. In Latin America. directly to rural nonfarm activities. or shouldthe proportion is far less-about one-third. The development be left to depend on a self-reliantlevel, composition. and growth of rural nonfarm responsc to market demands gencrated by theemployment are derived from the demand from growth of agriculturc? Therc are several reasonsthree sources for the products and services of that provide a case for direct assistance, depend-rural nonfarm activities. These are the demands ing on local circumstances. Through direct as-for: sistance, nonfarm activities might be enabled to

-Nonfood goods and services. which rise as respond better to the demands of agriculturerural incomes increase. and the rural population: they might better add

-Inputs and services to agriculture (including to output, employment, and earnings in ruraltools and equipment, repair services, transport. areas; they might be able to incrcase faster theprocessing, and supporting infrastructure and flow of benefits from rural development pro-works), which rise with agricultural development. grams to a large proportion of the rural poor-

-Manufactured goods and handicrafts,which the landless and small farmers who eventuallystem from markets in other regions or from leave agriculture permanently, or. who rely onabroad. nonfarm work as a secondiary source of income.

Agricultural development can have contrast- -Small businesses and services are amonging results. As agricultural productivity the primary beneficiaries of improvements inincreases, the demand for additional agricultural the social and economic infrastructure in rurallabor decreases-certainly in relative terms and, areas and towns. Rural roads enable nonfarmeventually, absolutely as well. The adverse effect activities to widcn their markets and improveof this shift in the demand for agricultural labor their access to raw materials, labor, public Lutili-will be offset to the extent that the rise in agri- ties, and commercial and marketing scrvices.cultural and farm income stimulates the growth Rural electrification schemes obviously benefitof output, employment, and carnings opportuni- small manufacturers, shops, andl scrvice andties in local nonfarm activities. crop-processing enterprises.

Many of the people displaced from their jobs -Rural nonfarm activities have grown in theas a result of agricultural development will face of exceptional difficulties and restrictionseventually migrate to urban areas in search of that have hindered rural bankina and credita better life. But their acquisition of skills and schemes. Improved access to capital through theexperience, gathered in rural nonfarm activities, use of nonfarm extension services, guaranteecan act as an import.ant determinant of their funds, and other devices would help provide thefuture earnings in the city. Indeed, many labor- means for further expansion of output, employ-ers acquire necessary skills and experience be- ment, and earnings opportunities.fore migrating to urban areas in search of better -Assistance in the form of aid to vocationaleconomic opportunities. Rural nonfarm activi- training programs. and trading. research, andties thus have an important role in the process demonstration services can help nonfarm activi-of economic development and structural change ties improve their techniques, services, and prod-from rural-agricultural to urban-industrial ucts, and expand their markets.economics. -Successful rural nonfarm activities must

In general, rural nonfarm activities are highly eventually compete with large-scale urban firmslabor intensive. But high labor intensity also is that already have been furnished with variousa reflection of the cheapness of labor, the prev- forms of assistance, including subsidies and pro-alence of poverty, and of low labor productiv- tective measures; direct assistance to rural non-ity. For such activities to raise output. to provide farm activities could be justified on the groundsthe volume of goods and services needed tohelp develop agriculture, and to raise the realincomes of the rural population. gains in laborproductivity are essential. The two-the needfor added productivitv and additional employ- service, transport, processing, and manufacturing. "Rurat'ment-need not conflict in a developing rural is defined to include small and medium-sired town, whose

economic roies and functions are closeiy related to agri-economy where greater economic growth can be cuiture and so the needs of the coral population.


that a balanced and competitive development of continuity of financing for current projects aslarge-scale and small-scale sectors is desirable. well as anticipated needs.

Support for rural nonfarm activities by the Net borrowing in 1976 was $29,048 million,Bank has, to date, taken three main forms, in- higher by $4,241 million than in 1975.volving assistance to rural development projects, The 96 countries include nine(O oil-exportingrural infrastructure projects, and agro-industrial countries, whose combined net borrowing inand marketing projects. Studies indicate that 1976, $4,641 million, was considerably highersupport in the future should continue to be seen than in 1975 ($3,060 million), and 1974, aas an extension. rather than as a new and sepa- year of very low levels. Over 90% of the totalrate aspect, of Bank operations. For this reason, increase in borrowing by these countries may betherefore, Bank-wide lending targets cannot be accounted for by the resumption as net borrow-set. ers of Iran and Venezuela, which, in 1974 and

The rural development and urban poverty 1975, made net repayments of external publicprograms of the Bank already provide the frame- debt. In 1976, these two countries still had large,work for developing new and increased forms of current account surpluses, but they were smallersupport and assistance. Additional support can than in 1975. Overall, the nine oil-exportingbe extended, for instance, by increasing the num- countries had a current account surplus of aboutber of special nonfarm components in rural $6,000 million, about $ 1,000 million less than indevelopment projects, and by providing for the 1975; all but Iran, Iraq, Trinidad and Tobago,development of small-scale enterprises in rural and Venezuela were in deficit, however. In thistowns and small urban centers. Support can also sense, these countries were beginning to resemblebe extended through components in Bank proj- more closely other developing countries in theirects in other sectors-education, water supply, external position.transportation, and electricity, to name a few. The balance of payments deficit on current

It will be diflicult for Bank borrowing mem- account of the 87 developing countries that arebers to build up new forms of development not major oil exporters (excluding, therefore,assistance for rural nonfarm activities. There those countries listed in footnote 6) narrowedare few examples of successful programs to draw markedly in 1976 to about $33,000 million,upon, and uncertainty is heightened by the down from about $44,000 million in 1975. Asdiversity of political, social, and economic situa- indicated in the Bank's Annual Report for 1977,tions in which such assistance must function. this development reflected the adjustments made,The inclusion, therefore, of monitoring and eval- in many of these countries, to the difficulties ofuation components in Bank-assisted projects, 1974 and 1975; the expansion of their exportand the lessons drawn from the Bank's own earnings in 1976 was also reflected. Net borrow-research program will help the Bank and im- ing by these countries increased by S2,659 mil-plementing agencies in its developing member lion to $24.408 million. This was a far smallercountries to gain a better understanding of theways in which assistance to rural nonfarm activi-ties might be directed.

Tb is sect ion on external ptiblic debt incorporates sorme ofExternal Public Debt the itmp ovemtents that ate progicssively beiOeg made in the

Bank's Debtor Repor~ting Systemn ( DRS), and to the con-tittUing anialysis of problems of exterrn2al debt thiat the DRS

Examination of the most recent data on ex- anld ielated information firom thel Bank and the interna-

ternal public dcbtC>) of 96 developing countries tionial Monetary Fuind (IMF) maikc possible. Althoughdetailed, consistent statistics of ion,te-term external debt

reveals an increase in external public debt during are still limited to putblic borrowing. detined as borrowingby public entities or with their- gtuaiantee, information

calendar 1976 at about the same annual rate as about borrowing by the private sector in developiitg

in 1975. At the end of 1976, the total of debt coLuntries withouIt guarantee by the debtor country is-progressively being iticorporated bsito tise DRS.

outstanding and disbursed was $ 160.505 million. tie Bank has received reports on private nonguaranteedThis total represented an increase of $3),229 debt fromt 16 countr)ies, accounting- for mdore than half of

- nestimatedi $45,0011 million in private debt outstanidingmillion-or 23 %-over 1975, compared with an as of the end of 1976. To compuite this total, estimates for

ats adlditional 24 countries wyere developed from balanceincrease of $2 1,850 million-or 2 0%-in 1975 of payments aiid creditor statistics. Of these estinmated

over 1974. The total, including undisbursed hal- country fgures, nearly half are thought to be quite reli-able. The less reliable figuires may' resuilt in a margin ofances, increased in 1976 by $41,150 million to err or of abouit 10% for the total.

Improvedl info-rmation about balance of payments devel.$227,403 million, an incrcase of some 22% opments, resulting from cooperation swith IMF staff, hasover 1975. These undisbursed balances, repre- usade possible a better Understandinge of the increasingly

comiplex patterns of external finance of many developingsenting firm agreements to lend not yet made coLintries. In brief, the analysis of external debt is now

pa rt of a broader analysis of external finance and balanceeffective by disbursements, stood at $66,877 mil- of payments problems involving both institutions.

lion or about 29 0 c of total debt outstanding- There have been improvements in the quality and cover-age of data on external publtc debt (partly as a result ofslightly less than at the end of 1975, and some- assistance to meinber governrnents) and on borrowing inwhat higher than in earlier years. As in 1975 international capital markets.

hathese hi-her thanrseaier year. assuance o 5 tAlgeria. aEtiador. Gabon, Indonesia, Iran, I-aq, Nigeria,these balances represented an assurance of the Tr inidad and Tobago, and Venezuecla.


increase in borrowing than in the previous two 76% of the debt outstanding at the end of 1976years; in conjunction with the reduced current and 74% of net borrowing during that year wasaccount deficit, this borrowing made possible a from such sources.large addition to official reserves, about $6,000 With few exceptions, the countries of Africamillion. This was in contrast with the situation of South of the Sahara 1'" have very low per capita1974 and 1975; during that period, these coun- incomes and have borrowed little from privatetries drew down reserves by about $8,000 million. lenders. In 1 976, the combined current account

Because these 87 countries are so diverse, any deficit of these countries was reduced to aboutstatements about their combined external bor- $3.100 million from $5,100 million in 1975. Netrowing and finance must be qualified. In particu- public borrowing was $2,601 million, or 10%lar, statistics on external public debt measure a higher than in 1975. Of this borrowing, two-much smaller element of the external finance of thirds was from official sources. The total publicthe larger and more complex economies than of debt outstanding at the end of 1976 of sub-the poorer countries, which continue to rely Saharan countries was SI 13,927 million, of whichmostly on official assistance. Other forms of ex- two-thirds was owed to official creditors. Mostternal finance, including private direct invest- of this debt was on highly concessional terms.ment, borrowing by the private sector without Debt outstanding to private creditors at the endpublic guarantee in the borrowing country, and of 1976 was $4,608 million, an increase of 24%short-term transactions, are important in the over 1975. Of this amount, 69%/ was owed bycountries with relatively high per capita income. four countries-Ivory Coast. Sudan. Zaire, andIt is possible, however, to generalize about re- Zambia. In 1976, official arrangements weregional groupings which, to a considerable extent, made to reorganize the debt of Zaire.coincide with categories based on average per South Asia ") resembles sub-Saharan Africacapita income. in that a large proportion of external public debt

Of all the regions, the developing countries in is owed to official creditors and that a high pro-the Mediterraneanur) region rely least on ex- portion of new borrowing is from official lenders.ternal public borrowing as a source of external The countries of the region owed a total offinance. These countries, which broadlv are $23,177 million at the end of 1976, of whichamong those with per capita incomes a good deal 96% was to official creditors. Most of this debthigher than most developing countries, had a was on highly concessional terms, either origi-combined current account deficit in 1976 of nally, or as a result of successive rearrangements$11,1)00 million, or about the same as in 1975. of the service payments on earlier loans. As inNet borrowing was $3,138 million, an increase of the case of African countries, this reflects: (a)11 % over 1975, and equivalent to 28 % of the the stated policy of official lenders to direct de-current account deficit. Other sources, includ- velopment assistance increasingly to very pooring the use of reserves of about $1,100 million, countries; (b) the policies of the gtovernments inprovided the remaining finance. At the end of the region; and (c) the reservations of private1976, total disbursed public debt was $21,417 lenders about lending to very poor countries.million, an increase of 18% over 1975, and a During 1976, almost all net borrowing by coun-relatively low 9% when expressed as a percent- tries of the region continued to be from officialage of gross national product (GNP). sources. The level of borrowing in that year,

Alone among the regions, the developing $2,322 million, was about $5()0 million lowercountries in the Middle East and North Africa") than in 1975. The current account deficit of-other than major oil-exporting countries-ex- these countries was reduced by about $ 1,000perienced a widening (albeit a small one) of million, to $1,100 million. This reduction, com-their combined current account deficit in 1976 bined with the availability of other flows, in-to $4,800 million, up from 54,500 million in cluding official grants, permitted an increase in1975. Net public borrowing declined by $740 reserves of these countries of about $2,300million to $2,293 million. This decline was more million.than accounted for by a decline in borrowing byEgypt, which also had a much reduced eurrentaccount deficit. Other countries in the region, inparticular. Morocco and Syria, had larger cur- Cyprus. Greece. Israel, Malta. Portugal, Spain, Turkey,

rent account deficits in 1976, but these were not and Ytigoslavia.

largely financed by increases in public borrowing. Babrain, Egypt, Jordan, Lebanon, Mor:occo, Omran, Syria.,

For the region as a whole, reserves were drawn cratic Republic of Yemen.

down by about $500 million, about the same as ri Benin, Botswana, BuIrLindi. Cameroon, Central AfricanEmpire. Chad, Comoros, Congo. Ethiiopia, Gambia,

in the year before. At the end of 1976, the ex- Ghana, Guinea, Ivory Coast. Kenya. Lesotho, Liberia,

ternal public debt of the countries of the region Madagascar, Malawi, Mali, MaUritania, Mauritius, Niger.Rwanda, Senegal. Sierr'a Leone. Somalia. Sudan. Swazi-

was $10,785 million, equivalent to almost 28% land, Tanzania, Togo, Uganda, Upper Volta, Zaire, and

of their combined national income. Most of this Zasisbia.ofdtheir andmbo ined national inome.Mot offa s es- 11) Afghanistan. Bangladesh, Burma, India, Nepal, Pakistan,debt and borrowing was from official sources- and Sri Lanika.


Bank Loans and IDA Credits Approved in Fiscal Year 1978, by RegionJuly 1, 1977-June 30, 1978(USS millions)

Bank loans(') IDA credits(l) Total(')RegionCountry Number(2) Amount Number(2) Amount Number(

2) Amount

Eastern AfricaBotswana ............ ................ 2 $ 14.5 - $ - 2 $ 14.5Burundi ............. ................ - - 2 17.4 2 17.4Ethiopia ............. ................ - - 1 24.0 1 24.0Kenya . .............................. 2 55.0 2 58.0 4 113.0Lesotho ............. ................ - - 2 13.5 2 13.5Madagascar .......................... - - 1 33.0 1 33.0Malawi .............................. - - 2 21.2 2 21.2Mauritius ............ ............... 3 37.7 - - 3 37.7Rwanda ............. ................ - - 1 15.0 1 15.0Somalia ............. ................ - - 3 17.0 3 17.0Sudan ....... - - 4 78.0 4 78.0Swaziland ..... 1 4.0 - - 1 4.0Tanzania ..... ...................... 2 40.0 5 100.5 7 140.5Zaire ................................ - - 1 9.0 1 9.0Zambia . ............................. 1 11.2 - 11.3 1 22.5

Total . ............................ 11 $ 162.4 24 $ 397.9 35 $ 560.3

Western AfricaBenin ................................ - $ - 2 $ 21.0 2 $ 21.0Cameroon ............ ............... 4 50.6 2 42.5 6 93.1Chad ................................ - - 3 21.7 3 21.7Gambia, The ......................... - - 2 8.5 2 8.5Ivory Coast .......... ................ 5 121.0 - - 5 121.0Liberia ....-. 3 ...... 30.8 - 6.0 3 36.8Mali . .............................. - - 2 25.0 2 25.0Niger . .............................. - - 2 9.5 2 9.5Nigeria ........ ..................... 2 90.0 - - 2 90.0Senegal . .............................. 1 11.0 2 26.3 3 37.3Sierra Leone .......... ............... - - 1 8.2 1 8.2Togo ................................. - - 2 19.8 2 19.8Upper Volta ........... ............... - - 2 17.4 2 17.4

Total ............. ................ 15 $ 303.4 20 $ 205.9 35 $ 509.3

East Asia and PacificFiji ................................. 1 $ 15.0 - $ - 1 $ 15.0Indonesia ............ ................ 7 435.0 2 70.0 9 505.0Korea, Republic of ....... ............. 6 439.0 - - 6 439.0Lao People's Democratic Republic ....... - - 1 8.2 1 8.2Malaysia ............ ................ 4 86.0 - - 4 86.0Papua New Guinea ....... ............. 1 3.5 - - 1 3.5Philippines ........... ................ 8 410.0 1 28.0 9 438.0Thailand ............. ................ 5 198.4 1 33.1 6 231.5

Total ............. ................ 32 $1,586.9 5 $ 139.3 37 $1,726.2

South AsiaBangladesh ........... ................ - $ - 6 $ 139.0 6 $ 139.0Burma .............................. - - 1 5.5 1 5.5India ................................. 4 330.0 13 951.5 17 1,281.5Nepal . .............................. - - 4 67.2 4 67.2Pakistan ............. ................ - - 5 122.2 5 122.2Sri Lanka .............. .............. - - 3 33.5 3 33.5

Total ............................. 4 $ 330.0 32 $1,318.9 36 $1,648.9

Bank Loans and IDA Credits, by Regiont 27

Bank loans(') IDA credits(') Total(')RegionCountry Number(!) Amount Number(2) Amount Number

0) Amount

Europe, Middle East, and North AfricaAfghanistan ........... ............... - $ - 2 $ 40.0 2 $ 40.0Algeria ...- ........................ 2 172.0 - - 2 172.0Cyprus . ............................. 2 18.5 - - 2 18.5Egypt, Arab Republic of ...... .......... 2 140.0 4 101.0 6 241.0Greece . ............................. 2 90.0 - - 2 90.0Jordan ............................... - 1 14.0 1 14.0Lebanon ........- ................... 1 50.0 - - 1 50.0Morocco .............. ........ 3 84.5 - - 3 84.5Portugal . ............................ 3 131.0 - - 3 131.0Romania . ............................ 4 256.5 - - 4 256.5Syrian Arab Republic ...... ............ 3 118.0 - 3 118.0Tunisia .............................. 2 67.0 - - 2 67.0Turkey ............................... 3 205.0 - - 3 205.0Yemen Arab Republic ...... ............ - - 3 29.0 3 29.0Yemen, People's Democratic Republic of . . - - 3 11.4 3 11.4Yugoslavia ............ ............... 4 328.0 = - 4 328.0

Total . ............................ 31 $1,660.5 13 $ 195.4 44 $1,855.9

Latin America and the CaribbeanArgentina . ............................ 2 $ 165.0 - $ - 2 $ 165.0Bolivia ............................... 3 51.0 - 9.0 3 60.0Brazil .......... .................... 9 705.0 - - 9 705.0Colombia ..... - 7 354.6 - - 7 354.6Costa Rica ............ ............... 3 42.1 - 3 42.1Ecuador . ............................ 1 11.0 1- 11.0El Salvador ........... .... ...... 2 32.0 - - 2 32.0Guatemala ............ ............... 1 72.0 - - 1 72.0Guyana ......... 1.......... I 10.0 1 10.0Haiti .............. ................. - - 3 31.6 3 31.6Honduras . ............................ 1 10.5 1 5.0 2 15.5Jamaica ............... ........... 3 68.0 - - 3 68.0Mexico ............................... 6 469.5 - - 6 469.5Nicaragua ............ ............... 2 13.1 - - 2 13.1Panama . ............................ 1 12.0 - - 1 12.0Paraguay ........ ................... 2 39.0 - - 2 39.0Uruguay . ............................ 1 9.7 - - 1 9.7

Total . ............................ 44 $2,054.5 5 $ 55.6 49 $2,110.1

GRAND TOTAL ......... .............. 137 $6,097.7 99 $2.313.0 236 $8,410.7

4'' All supplements and amendments are included in amounts, but only those qualifying as separate lending operations areincluded in number.

0) Joint Bank/IDA operations are coanted only once, as Bank operations.


Bank Loans and IDA Credits Approved in Fiscal Year 1978, by Purpose3tJly 1, 1977-Jtine 30, 1978(US wilhiolls)

palvposeC) Bank IDA Tota

Agriculture and Rural DevelopmentAfghanistan-Irrigation, flood control . . $ - $ 22.0 $ 22.0Afghanistan-Crop processing, storage . . ....... 18.0 18.0Argentina-Agricultural credit . . . ....... 60.0 - 60.0Argentina-Crop processing, storage . . ......... 105.0 - 105.0Bangladesh-Crop processing, storage . ........ 25.0 25.0Bangladesh-Perennial crops . . . - 21.0 21.0Bangladesh-Research and extension .................. . . . - 6.0 6.0Bolivia-Area development . . .......... 9.0 9.0 18.0Botswana-Livestock . . . 6.5 - 6.5Brazil-Area development . . ........... 24.0 - 24.0Br.izil-Area development . . .......... 17.0 - 17.0Brazil-Area development . . ........... 37.0 - 37.0Bratzi]-Research and extension . . .......... 100.0 - 100.0Burma-Research and extension ........................... . - 5.5 5.5Cameroon-Area development . . . 1 5.0 - 15.0C eamcroon-Area development ............................ . - 8.5 8.5Cameroon-Area development ......................... . - 13.0 13.0Cameroon-Irrigation, flood control . . ........ 14.5 14.5 29.0Chad-Irrigation, flood control .......... ............. . - 1.9 1.9Chad-Livestock ... .................................... - 11.5 11.5Cyp runs-Area development .......... ........... . 10.0 - 10.0Egypt, Arab Republic of-Agrictultuiral credit .......... ....... - 32.0 32.0)Ethiopia-Crop processing, storage ... ...................... - 24.0 24.0Greece-Agricultural credit ....... ........................ 30.0 - 30.0Guyana-Area development ...-............. 10.0 10.0Honduras-Area development ................. ............ 10.5 - 10.5India-Agriculturlal credit ........ ........................ - 150.0 150.0India-Area development ................. ................ - 70.0 70.0India-Fisheries ......................... - 17.5 17.5India-Irrigation, flood control ............. .. .............. - 126.0 126.0India-Irrigation. flood control....................... - 58.0 58.0India-Ir-igation, flood control ............. .. .............. - 85.0 85.0indi a-Crop processing, storage ........................ - 14,0 14.0India-Crop processing, storage ............. .. ............ - 107.0 107.0India-Research and extension ........... .. .............. - 13.0 13.0India-Research and extension . ................. ....... - 16.0 16.0India-Research and extension ............... .......... - 8.0 8.0Indonesia-Agricultural credit .................. ........... - 30.0 30.0Indonesia-Irrigation, flood control ............. .......... 140.0 - 140.0Indonesia-Irrigation, flood control .............. ........... 31.0 - 31.0Indonesia-Perennial crops .... ........................... 65.0 - 65.0Indonesia-Perennial crops ................................ 65.0 - 65.0Ivory Coast-Perennial crops .............. ............... 20.0 - 20.0Jamaica-Perennial crops ............................. ... 18.0 - 18.0Korea. Repuiblic of-Area development ...... ............... 36.0 - 36.0Korea. Republic of-Area development ............ ....... 95.0 - 95.0Lao People's Democratic Republic-Agricultural credit ......... - 8.2 8.2Lesotho-Area development ...................... ..... - 6.0 6.0Liberia-Perennial crops ... .............................. 7.0 6.0 13.0Malawi-Area development ............................... - 10.7 10.7Malaysia-Area development . . .......... 28.0 - 28.0Malaysia-Irrigation. flood control .... ................. 26.0 - 26.0Malaysia-Research and extension ............... ........... 19.0 - 19.0Mali-Perennial crops .................................... - 15.0 15.0Mexico-Livestock ................... ................ 200.0 - 200.0Mexico-Research and extension ................ ........... 56.0 - 56.0Morocco-Area development .............................. 65.0 - 65.0Nepal-Irrigation, flood control ................. ...... .... - 30.0 30.0Niger-Forestry ......... ............................... - 4.5 4.5

Bank Lociis ald IDA Credits, by Purpose 29

PurposeM) Bank IDA Total

Agriculture and Rural Development (continued)Nigeria-Perennial crops .................................. $ 30.0 $ - $ 30.0Pakistan-Area development ................ .......... - 3.0 3.0Pakistan-Irrigation, flood control ............ . . - 35.0 35.0Pakistan-Irrigation, flood control ............ .. ............ - 70.0 70.0Pakistan-Research and extension ....................... - 12.5 12.5Pakistan-Forestry ................... ............ - 1.7 1.7Philippines--Area development ............. .. ............. - 28.0 28.0Philippines-Irrigation, flood control .............. 65.0 - 65.0Philippines-Irrigation, flood control . ....................... 150.0 - 150.0Philippines-Perennial crops .. 8.( - 8.0Portugal-Agricultural credit ............... ...... . 70.0 - 70.()Romania-Agricultural credit ............... ............... 71.0 - 71.0Romania-Irrigation. flood control ........................ . 40.5 - 40.5Senegal-Irrigation, flood control .... ........ ............. - 20.0 20.0Sri Lanka-Perennial crops ................. ............... - 4.5 4.5Sri Lanka-Perennial crops ................................ - 21.0 21.0Sudan-Area development ....................... - 16.0 16.0Sudan-Livestock . ..................... .............. - 25.0 2S.0Sudan-Research and extension . . - 15.0 15.0Tanzania-Area development .............................. - 12.0 12.0Tanzania-Crop processing, storage ........... ..... .... - 14.0 14.0Tanzania-Perennial crops ...... ...... ............... - 27.5 27.5Togo-Area development ......... ....... ................ - 14.0 14.0Turkey-Livestock ...................... ................. 24.0 - 24.0Turkey-Forestry .............................. 86.0 - 86.0Yemen Arab Republic-Irrigation, flood control ...... .. ....... - 10.5 10.5Yemen, People's Democratic Republic of-Area development . . . - 5.2 5.2Yugoslavia-Agricultural credit ............ .. .............. 75.0 - 75.0Zaire-Area development ................. ................ - 9.0 9.0

Total .1............................................... $1,929.0 $1,340.7 $3,269.7

EducationAlgeria ............. ................ ..... $ 90.0 $ - $ 90.0Chad . ....................... ....................... - 8.3 8.3El Salvador ....................... ...................... 9.0 - 9.0Gambia, The............ .... .. - 5.5 5.5Greece ........................... 60.() - 6().0Haliti ... .... - 10.0 10.0HondLuras ,~.~.~............ ......... - 5.0 5.0Indonesia ............................................... - 5.0 - 15.0Kenya . . ....................... .. 2............... 1 3.0 23.0Korea. Republic of . . ................................. 23.0 - 23.0Lesotho ................. - 7.5 7.5Mali ............... ................................. - 10.) 10.0Malritiis ........... ................................... .2 - 15.2Nepal. ................................................. - 5.7 5.7Philippines ... ......................................... 2.0 - 2.1)Portugal . ................................................ 21.0 - 21.0Somalia ..................... ....... - 8.0 8.0Swaziland .............................................. 4.0 - 4.0Syrian Arab Republic ............... .............. .. 20.0 - 2()10Uruguay . .............. ....... 9.7 - 9.7

Total ................... ........................ $ 268.9 $ 83.0 $ 351.9

Industrial Development and Finance'>)Bangladesh .............. .................... ....... $ - $ 7.0 $ 7.0Burundi .... ... - 3.4 3.4Colombia ................................ 1 00.0 - 1]0.0Colombia ........... ............ ....................... 15.0 - 15.0

(continued)

30 Summary and Backgrounid

Bank Loans and IDA Credits Approved in Fiscal Year 1978, by Purpose (continued)July 1, 1977-June 30, 1978

(US$ millions)

PuIrpose" i Bank IDA Total

Industrial Development and Finance'2 ) (coritinued)

Costa Rica .... . ................................... $ 15.0 $ _ $ 15.0Egypt, Arab Republic of ............... ... 40.0 40.0Gambia, The . . . .............. - 3.0 3.0India ........................................ ... 80.0 - 80.0India ................................... ......... 25.0 - 25.0Indonesia . . ............................... .......... - 40.0 40.0Kenya . . . ................................. 0........ - .0 10.0Korea, Republic of ....... - ............. 110.0 - 110.0Korea, Reptiblic of ..... ............... 55.0 - 55.0Mauritius .............................. ............... 7.5 - 7.5Mexico .......................... .................. 100.0 - 100.0Mexico ................. ........................... 47.0 - 47.0Niger .. .. .................................... - 5.0 5.0Nigeria .......... ........... ....... ......... 60.0 - 60.0Philippines ..................... - ...... ..... 30.0 - 30.0Philippines .................... ...................... 80.0 - 80.0Philippines ................... ......................... 15.0 - 15.0Sri Lanka . .................... ......................... - 8.0 8.0Tanzania .......................... 15.0 - 15.0Tunisia ........................... 35.0 - 35.0Upper Volta . . .......................................... - 4.0 4.0

Total ......................... ...................... $ 829.5 $ 80.4 $ 909.9

IndustryBrazil-Industry sector loan ............................... $ 85.0 $ - $ 85.0Indonesia-Engineering . ................................ - 10.0 - 10.0Romania-Industry sector loan . ............. 85.0 - 85.0Romania-Industry sector loan . ............... 60.0 - 60.0Tanzania-Textiles . ..................... ........... 25.0 20.0 45.0Thailand-Small industry ........................ ... 4.8 - 4.8Turkey-Iron and steel . ..................... .... 95.0 - 95.0Yemen Arab Republic-Textiles ................... ........ - 7.0 7.0

Total ............................................... $ 364.8 $ 27.0 $ 391.8

NonprojectBangladesh ............................ ................ $ - $ 75.0 $ 75.0Jamaica ......... - ............... 30.0 - 30.0Lebanon ....... .................. 50.0 - 50.0

Total ... -- ............................... $ 80.0 $ 75.0 $ 155.0

Population and NutritionColombia ............................................ $ 25.0 $ - $ 25.0Thailand ............................................ - 33.1 33.1

Total ............................................... $ 25.0 $ 33.1 $ 58.1

PowerBrazil .................................... $ 130.0 $ - $ 130.0Colombia ............................................. 126.0 - 126.0Colombia .................................... 0..... so. o - 50.0Fiji .................................................... 15.0 - 15.0Guatemala . ................................ - ....... 72.0 - 72.0India . .................................... ...... 105.0 - 105.(India .. .- ................................ 200.0 200.0Indonesia ............................................ 109. - 109.0Jamaica . ......................................... 20.0 - 20.0Liberia .......................................... 10.0 - 10.0Madagascar . ........................................ - 33.0 33.0

Bank Loans uisd IDA Credits, by Purpose 31

I'ut-poae'O Banik IDA Total

Power (continued)

Mauritius ................. ............................. $ 15.0 $ - $ 15.0Philippines .................... .... 60.0 - 60.0Sierra Leone .............. ........ - 8.2 8.2Syrian Arab Republic ...................... ....... 40.0 - 40.0Thailand .................................. ......... 50.0 - 50.0Thailand ....................... ....................... 25.0 - 25.0Yemen, People's Democratic Republic of ..... ............... - 5.0 5.0Yugoslavia ........... ................................ 73.0 - 73.0

Total .. . ..... .... ... . ............. .. . $ 900.0 $ 246.2 $1,146.2

Technical AssistanceEcuador. .................... $ 11.0 $ - $ 11.0Senegal ........ ............ - 6.3 6.3Somalia .................... - 3.0 3.0

Total. .................... $ 11.1) $ 9.3 $ 20.3

TelecommunicationsCosta Rica ....... ....................................... $ 10.6 $ - $ 10.6Egypt, Arab Republic of .................. - 53.0 53.0El Salvador ........................ 23.0 - 23.0India. ......................... 120.0 - 120.0Nepal ............- _.......... 14.5 14.5

Total ... 5........ ...... . . ......... ... .......... . $ 153.6 $ 67.5 $ 221.1

TourismMexico .................... _........................... $ 50.0 $ - $ 50.0

Total .................... ......................... $ 50.0 $ - $ 50.0

TransportationBangladesh-Ports and waterways ....................... $ - $ 5.0 $ 5.0Benin-Highways ..- 10.0 10.0Benin-Ports and waterways . . ........................... - 11.0 11.0Bolivia-Highways .. 25.0 - 25.0Brazil-Highways ......................... ......... 114.0 - 114.0Burundi-Highways ..- 14.0 14.0Cameroon-Highways . . 16.5 - 16.5Cameroon-Highways .................... 4.6 6.5 11.1Cypruts-Ports and waterways ................ 8.5 - 8.5Egypt, Arab Republic of-Ports and waterways . .100.0 - 100.0Haiti-Highways ..- 15.1) 15.0Ivory Coast-.Highways .................................. 29.0 - 29.0Ivory Coast-Railways ................................... 23.0 - 23.0Korea, Republic of-Railways . .120.t) - I 20.(Liberia-Highways .. . ............................ 13.8 - 13.8Malawi-Highways ..- i0.5 10.5Malaysia-Ports and waterways . . 13.( - 13.0)Nepal-Highways .. - 17. 17.0Panama-Highways . .12.0 - 12.0Papua New Guinea-Ports and waterways . .3.5 - 3.5Paraguay-Highways . .33.0 - 33.0Rwanda-Highways ..- 15.0 15.0Senegal-Railways ... I.0 - 11.0Sudan-Ports and waterways . .- 22.0 22.0)Syrian Arab Republic-Highways . .58.0 - 58.0Tanzania-Transportation sector loan . .- 15.0 15.0Thailand-Highways ............... ......... ...... 110.0 - 110.0Togo-Highways ........... ............... - 5.8 5.8

(continuLied)


Bank Loans and IDA Credits Approved in Fiscal Year 1978, by Purpose (continued)July 1, 1977-June 30, 1978(US$ millions)

Purpose(') Bank IDA Total

Transportation (continued)Tunisia-Highways .......................... ........... $ 32.0 $ - $ 32.0Upper Volta(3)-Railways .-. .................................. _ 5.2 5.2Yemen Arab Republic-Highways ....... .................. - 11.5 11.5Yugoslavia-Highways ................. ................. 80.0 - 80.0Yugoslavia-Railways .................................... 100.0 - 100.0Zambia-Highways .......................... _ ........ 11.2 11.3 22.5

Total ................................................ $ 918.1 $ 174.8 $1,092.9

Urban DevelopmentBolivia ............................................ $ 17.0 $ - $ 17.0Botswana ............................................... 8.0 - 8.0Brazil .............................. ................. 88.0 - 88.0Colombia ............................................... 24.8 - 24.8Costa Rica ................................... ......... 16.5 - 16.5Egypt, Arab Republic of .................................. - 14.0 14.0India .................. - 87.0 87.0

Kenya .................................................. 25.0 25.0 50.0Mexico ................................................. 16.5 - 16.5Morocco . ............................................... 18.0 - 18.0

Tanzania ..... ......................................... - 12.0 12.0Thailand ..... ....................................... 8.6 - 8.6

Upper Volta . ........................................... - 8.2 8.2

Total . ............................................... $ 222.4 $ 146.2 $ 368.6

Water Supply and SewerageAlgeria .................................................. $ 82.0 $ - $ 82.0Brazil ....... ........................... .............. 110.0 - 110.0Colombia ........................ ....................... 13.8 - 13.8Egypt, Arab Republic of ... ............ .. ................ - 2.0 2.0Haiti ....................................... ........... - 6.6 6.6Ivory Coast ............................ ................ 33.0 - 33.0Ivory Coast ....................... ...................... 16.0 - 16.0Jordan ..................... ........................ . - 14.0 14.0Kenya ......................... ...................... 30.0 - 30.0Morocco ...................... ......... I .......... 1.5 - 1.5Nicaragua ........... ........... ....................... 10.1 - 10.1Nicaragua ........................ ...................... 3.0 - 3.0Paraguay ..... ....................... 6.0 - 6.0Portugal ...................... .......................... 40.0 - 40.0Somalia .............................. ................. - 6.0 6.0Yemen, People's Democratic Republic of .......... .. ...... - 1.2 1.2

Total ..................... I .......................... $ 345.4 $ 29.8 $ 375.2

GRAND TOTAL .......... ............................ $6,097.7 $2,313.0 $8,410.7

Note: For details of these loans and credits, see the chapter, "Projects Approved for Bank and IDA Assistance in Fiscal 1978,by Sector," as well as Appendix H, Statement of Loans Approved during Fiscal Year 1978, and Appendix G, Statementof Development Credits Approved during Fiscal Year 1978, in the sections, Bank Appendices and IDA Appendices,respectively.

"') Operations have been classified by the major purpose they finance. Many projects include activity in more than one sectoror subsector.

Pt Includes lending to development finance companies and to small enterprises.Pt Amendment/supplement to previous loan or credit, not counted as a separate lending operation,


The external public debt of the countries in the private sector in Korea, like the private sectorthe Latin America and the Caribbean region"') in the other countries of the region, borrowedexcluding the oil-exporting countries, was abroad without guarantee. Net borrowing by the$50,841 million at the end of 1976, or about Philippines was about 23% of the total for the38% of the total for all countries other than the region, and accounted for 15% of the regionWsoil exporters. External public debt in relation to debt outstanding. Unlike most countries in theGNP for the region was about 16%. The rate of region, the current account deficit of the Philip-increase of external public debt rose to 28%, pines widened in 1976, and no addition to re-up from 23% in 1975, but still below the peak serves was made. Overall, the reserves of theincrease of 32% in 1974. Net borrowing was countries of the region increased by almost$10,789 million, an increase of $2,893 million, $3,000 million.or 37% higher than in 1975. Private sourcesaccounted for 67% of external public debt out-standing at the end of 1976 and 87% of net The debt and borrowing of the 87 developingborrowing during that year. Countries in the countries that are not major oil exporters mayregion owed 58% of all the external public debt also be viewed by type of creditor. Of the totalof the 87 developing countries to private cred- external public debt of these countries at theitors as of the end of 1976. The region accounted end of 1976 of S134,673 million. exclusive offor 66% of net public borrowing from private undisbursed balances, governments were owedsources during 1976. Brazil, which alone ac- $54,029 million, an increase of 15% over 1975.counts for about 43% of the GNP of the region, The share of debt owed to governments to totalaccounted for 29% of both its external public debt outstanding continued its steady declinedebt and its net borrowing in 1976. In addition, from 52% in 1970 to 40% at the end of 1976.the private sector in Brazil (as in several other Almost three-quarters of this debt was at highlycountries in the region) obtained large amounts concessional terms at the end of 1976, comparedof external finance without public guarantee, with about two-thirds in 1970. Disbursements byboth in the form of loans, and, as in some other governments, net of amortization payments. werecountries, direct investment. Debt of the private $6,516 million, a decrease of 14% from a peaksector, not included in the statistics of external of S7,604 million in 1975, but about $2,000 mil-public debt presented in this Annuzl Report, lion higher than in 1974. New government com-represented somewhat more than 40%k of the mitments to lend in 1976, which include newtotal external debt of Brazil. Net borrowing of loans not yet disbursed, rose by about 10% tothe private sector without public guarantee was S13,044 million. The total amount of undis-somewhat less than 40% of net long-term bor- bursed loans from governments at the end ofrowing by Brazil in that year. Borrowing by the 1976 was $21,011 million, equivalent to 28%private sector in other countries seems to have of total public debt owed to governments, includ-been a good deal less in relation to public debt ing the undisbursed portion.than in Brazil. Three other countries, Mexico, Debt owed to international organizations byArgentina, and Chile, together accounted for the 87 developing countries was $21,589 million46% of the total public debt outstanding in the at the end of 1976, an increase of 20% overregion. In 1976, the current account deficit of 1975. Debt owed to international organizationsthe region was about $11,400 million, $500 mil- accounted for 1 6% of total disbursed debt, alion less than in 1975. This made possible an in- share which has remained stable through thecrease in reserves of almost $3,000 million. first half of the 1970s. Net disbursements were

Countries other than Indonesia in the East $3,629 million in 1976, an increase of only 6%,Asia and Pacific region(12 had external debt compared with a 37% rise in 1975 and one ofoutstanding of $14,547 million at the end of 41°% in 1974. New loans committed in 19761976, an increase of 29% over the end of 1975. were $7,714 million, an increase of 4% overNet public borrowing in 1976 was $3,270 mil- 1975. Undisbursed balances of internationallion, an increase of 16% over 1975. The com- organizations at the end of 1976stoodat$19,085bined exports of the countries in this region million, and were about 37% of total undis-increased in 1976 by more than 60%. This con- bursed balances of all lenders at the end of 1976.tributed to a reduction in the current account Loans from financial markets include loansdeficit from more than $5,000 million in both from private banks, other private financial insti-1974 and 1975 to about $2,000 million in 1976, tutions, and bonds. Debt outstanding to financiala level about the same as in 1971, and consider- markets at the end of 1976 was $47,915 million,ably smaller after accounting for inflation. About46% of total debt outstanding was owed byKorea, whose economy, the largest in the region, ) Argentina. Barbados, Bolivia, Brazil, Chile, Colombia,

Costa Rica, Dominican Republic, El Salvador. Guatemala,has grown rapidly. Net borrowing by Korea, Guyana, Haiti. Honduras, Jamaica, Mexico, Nicaragua,$1,207 million, did not increase in 1976, and Panama, Paraguay, Peru, and Uruguay.

was Republic of ChiGna. Fiji, Repiublic of Korea. Nalaysia,was 37% of the total for the region. In addition, Papua New Guinea, Philippines, Singapore, and Thailanid.


External Public Debt Outstanding, Disbursed, of 87 Nonoil-exporting Developing Countries,by Region, 1973-1976(US$ millions)

Years

Region 1973 1974 1975 1976

Africa, South of the Sahara 7,407 9,429 11,391 13,927East Asia and Pacific 7,089 8,665 11,265 14,547ILatin America and the Caribbean 24,520 32,287 39,849 50,841North Africa and Middle East 4,786 5,781 8,629 10,785South Asia 16,469 18,773 20,679 23,177More advanced Mediterranean countries 13,156 15,735 18,171 21,417

Total-87 nonoil-exporting countries 73,427 90,670 109,984 134,693

External Public Debt of 96 Developing Countries(US$ millions)

Debt outstanding

(including (disbursed Commit- Net disbuLrse-Developing cotunitries Lindisbtursed) only) ments ments

87 Nonoil-exporting countries1973 10(0.812 73,427 21,186 9,6651974 130,403 90,670 34,213 15,1461975 153,688 109,984 34,997 21,7471976 186,884 134,693 42,337 24,408

9 Oil-exporting countries1973 24,201 16,379 6,893 3,3931974 26,838 17,777 4,891 7091975 32,566 20,312 8,862 3,0601976 40,519 25,832 9,739 4,641

96 Developing countries-Total1973 125,013 89,805 28,079 13,0581974 157,241 108,447 39,103 15,8551975 186,253 130,297 43,859 24,8071976 227,403 160,526 52,076 29.048

an increase of 37%. This followed increases of of these countries. The estimates have been made37% in 1975 and 45% in 1974. Public debt possible, in many cases, by improved and moreowed to these lenders represented 36% of the timely reporting to the Bank on external debt bydebt outstanding to all creditors in 1976; this borrowing countries, and bv more intensive ef-share had increased steadily from 16% in 1970 forts, including field missions, by Bank staff into 32% in 1975. Net borrowings from financial assisting countries to make such reports. For themarkets increased by $3,386 million, or 34%, sample of 34 countries, public debt outstandingto $13,270 million. New commitments by these at the end of 1977 is estimated at $133,800 mil-lenders increased by 41% to $18,241 million, lion, an increase of 23% compared with an in-after having declined by about 6% in 1975. Un- crease of 24% for this group of countries indisbursed or undrawn commitments stood at 1976. It appears that, as in 1976, borrowing byS8,569 million at the end of 1976, in many these countries was in excess of immediatecases representing commitments that would be needs: their combined current account deficit isdrawn only as needed. estimated to have been reduced in 1977, follow-

ing a reduction in 1976, and, in many cases,substantial additions to reserves were made.

Reliable estimates of the increase in debt out- However, statements about these countries instanding during 1977 have been made for 34 aggregate are qualified by their diversity; amongcountries which, together, have accounted for the various regions, the rate of increase in debtabout four-fifths of the public debt outstanding appears to have declined in Latin America,of the 87 nonoil developing countries and a South Asia, and Africa, but rose or remained theslightly higher proportion of the increases in debt same in the other regions.

Capital Flows from DAC and OPEC Coo tries 35

Creditor Composition of External Debt of 87 Nonoil-exporting Developing Countries,by Amount and Percentage

1975 1976

US$ millions % USS millions

Debt Outstanding(disbursed only)Governments 47,121 42.8 54X029 40.1International organizations 17,925 16.3 21.589 16.0Financial markets 34,855 31.7 47.915 35.6Suppliers and other private 10,085 9.2 11,161 8.3

Total 109,986 101) 134,693 10(0.(

CommitmentsGovernments 11,811 33.8 13.044 30.8International organizations 7,395 21.1 7.714 18.2Financial marlkets 12,910) 36.9 18,241 43.1Suppliers and other privaLte 2,881 8.2 3,340 7.9

Total 34,997 100.0 42.339 10()

Net DisbtursementsGovernments 7.604 35.0 6.5 16 26.7International organizations 3,430 15.8 3.629 14.9Financial markets 9,884 45.5 13,270) 54.4Supplicrs aind other private 828 3.8 992 4.1

Total 21,746 100.1 24.40)7 1()0.1

Note: Details maly niot add to totals becauise of rouInding.

Capital Flows from DAC and OPEC tions, direct and portfolio investments, andCountries grants by private voluntary organizations to

developing countries by DAC members, werePreliminary data from the Development As- $43,449 million in 1977, compared with $40,511

sistance Committee (DAC) (13) of the Organisa- million in 1976. According to DAC estimates,tion for Economic Co-operation and Develop- total flows in 1977 were equivalent to 0.93% ofment (OECD) indicate that Official Develop- DAC members' combined GNP, compared withment Assistance (ODA) of $14,754 million by 0.97% in 1976. These figures exclude significantDAC members in calendar 1977 rose by about amounts in Eurocurrency borrowing by develop-8% in dollar terms, and by about 4% in real ing countries (discussed in the chapter, 'Bor-terms over 1976. Thirteen of the 17 DAC mem- rowings and Finance" in this Annual Report).ber governments increased their outflow of ODA Although most Euromarkets are located in DACin dollars during the year, and nine countries' lt) countries, the funds in any one loan do not neces-also raised it as a share of their gross national sarily originate in the countrv issuing it.product (GNP). As a perccntage of their com- Although the statistics on the aid flows frombined GNP, ODA from members of the DAC members of the Organization of Petroleum-Ex-fell back from 0.35% in 1976 to 0.31 % in 1977, porting Countries (OPEC)' 1 `1 are much lessthe second lowest ratio in the 1970s.

In 1974, Sweden became the first DAC coun-try to meet the target of providing the equivalentof 0.7% of its GNP in the form of ODA. Its Includes Australia, AstLSria, Belgium. Canada. Denmalk.

ODA reached a record high of 1 % relative to Finland, France, Germnany (Federal Repiblic of), Italy.ODA reched arecor hi.-hof I relatve to Japan, the Netherlands. New Zealand, Nor-wav. Sweden.GNP in 1977. The Netherlands and Norway Switzerland. UUnited Kingdo nited States, and the

provided 0.85% and 0.82%, respectively, up Auisttalia, Austria, Canada, Denmark. France. Japan, tihefrom 0.82% and 0.70% in 1976. Netherlands, Norway, and Sweden.

Very preliminary data indicate that total flows Algeria. Ecuador. Gabon. Indonesia. fran, laia. KuLait.Libya, Nigeria. Qatar, Saudi Arabia. Uttited Arab Ernir-of financial resources, which include export ,tes. and Venezuela. Capital surplIS OPEC counltries are:

Kuwait. Libeae Qatar. Sauidi Arpabiat, anud the United Arabcredits extended by official and private institu- Emiirates.


The Flow of Financial Resources from DAC Countries to Developing Countries andMultilateral Institutions: 1972-77(US$ billions)

Net disbursements 1972 1973 1974 1975 1976 1977(I)

Total, official and private(') 19.69 22.63 22.06 40.38 40.51 43.45As share of GNP (%) 0.77 0.73 0.64 1.05 0.97 0.93

Total official 10.X8 11.83 13.49 16.61 16.97 17.95Official Development Assistance"2 ) 8.54 9.37 11.30 13.59 13.67 14.75

As share of GNP(%) 0.33 0.30 0.33 0.35 0.33 0.31Total private(l) 9.61 10.81 8.57 23.77 23.54 25.50

Details may not add to totals because of rounding.(') Includes grants by private voluntary agencies.(2) "Official Development Assistance" is fully defined in Statistical Annex Table 3, as is the content of the remainder of official

resources, known as "Other Official Flows."(') Preliminary.

firm than those for the DAC countries, DAC ary and nonconcessionary resources. In 1977,reports indicate that total net disbursements by approximately 61% of net disbursements wereOPEC members, which rose rapidly from $1,740 on concessionary terms. Total OPEC flows rep-million in 1973 to $5,952 million in 1974, and to resented some 3% in terms of these countries'$8,164 million in 1975, but which appeared to GNP in 1977, and concessional flows werehave fallen slightly in 1976 to $7,955 million, about 2% of GNP. The major donors wereincreased substantially to about S9,000 million Iran, Kuwait, Libya, Saudi Arabia, and thein 1977. These figures include both concession- United Arab Emirates.

The Year's Activities, by RegionEastern Africa

Trend in Lending, 1965-78(US$ millions. Fiscal years.)(00) Number of Operations

Per capitaBorrowers, Population() GNP 1976(2)fiscal 1976-78 )0OO) (US$) 2,000

Botswana 679 410Burundi 3,811 120Ethiopia 28,678 100 -5-Kenya 13,800 240Lesotho 1,244 170-Madagascar 9.112 200Malawi 5,176 140Mauritius 894 680 Y. - -Rwanda 4,217 110 656.5Somalia 3,252 110 = 572.2 560.3 =Sudan 15,880 290 440.6 (39) (35)Swaziland 510 470 2726 (31)Tanzania 15,136 180 (21-Zaire 25,389 140 - 88.4 (212Zambia 5,063 440

NOTE: The 1976 estimates of GNP per capita presented above 1965-69 1970-74 1975 1976 1977 1978are from the 1977 World Bank Atlas, published in January Annual Averages1978, and are identical to those shown in the WorldDevelopnment Indicators, published in June 1978.

(i) Estimates for mid-1976.(2) Arlas methodology, 1974-76 base period.

Eastern Africa, like its sister Region to the everywhere are trying to cope with the costswest, Western Africa, is experiencing high imposed by an expansion of services in urbanrates of population growth of some 2.7% a areas, and efforts are under way to increase theyear. Moreover, the population in many areas number of employment opportunities availableof the Region is widely dispersed. These char- in the modem sector.acteristics impose financial burdens on gov- As in years past, the circumstances that mosternments that are laying down the social and affected the economic situation of Easternphysical infrastructure needed to equip their African countries in 1977-78 were the level ofcitizens to participate fully in economic develop- prices received for their commodity exports inment. Large areas of cultivable land mean that relation to import prices and the quality of har-the potential for expanding agricultural output vests. Both of these elements were, on the whole,is great, despite the Region's highly weathered positive, but certain countries (especially thoseand leached soils-which, nevertheless, can re- dependent on copper exports, like Zaire andspond to development through more intensive Zambia), continued to suffer from economicresearch efforts. The utilization of this potential stagnation and financial crises. Zambia, in ordermay prove to be expensive, particularly in view to mobilize international assistance, asked theof the long distances that, in many cases, sepa- Bank to form a Consultative Group of countriesrate new areas from existing centers. and institutions interested in supporting its econ-

Though the Region is still largely rural in omy and development; the first meeting of thischaracter, migration to urban areas has been new Consultative Group took place in Paris atincreasing rapidly in recent years. Governments the end of June. The positive economic develop-

38 The Year's Acliivities, by Region

ments affecting the Region were overshadowed Agricultural Prices Upby heightened levels of uncertainty and politicalunrest, which, in many countries, caused de- The improvement in the commodity terms offense expenditures to strain government finances trade over the last year was the most dramaticand inhibited the systematic investment neces- since 1974. Considering the range of majorsary to direct the additional resources acquired Eastern African commodity exports (which ac-into longer-term development efforts. Transport count for over 70% of total export revenues),rouites were disrupted, slowing the pace of ship- world market prices rose an average 18% overments of goods to port, and, although the flow the past year (1977), compared with an inter-of official aid continued apace, private external national inflation rate of some 10%. This favor-sources of capital dried up to a large extent, able development was mainly due to increasedand heavily indebted countries found it increas- prices for agricultural crops, as mineral prices,ingly difficult to obtain refinancing. in general, remained depressed. Benefits accrued,

In an effort to overcome political uncertainty especially, to principal coffee and tea exportersin one area of the Region, the three Partner like Burundi, Ethiopia, Kenya, Malawi, Rwanda,States of the East African Community (EAC) Tanzania, Uganda, and Zaire. The prices of beef,-Kenya, Tanzania, and Uganda-met, over groundnuts, sisal, and tobacco all recovered fromthe past year, under the auspices of the World previous declines, but the price of sugar re-Bank to discuss outstanding issues among them. mained at a low plateau in relation to theThe mediator chosen, Dr. Victor Umbricht, a extremely high levels of 1974-75, hamperingSwiss national-whose efforts are being financed the growth of the Region's major sugar export-by the United Nations Development Programme ers, Mauritius and Swaziland. A drop in the price(UNDP) and under a Bank loan-is now ac- of cotton particularly hurt Sudan, whose eco-tivelv working to help the Partner States reach nomic and financial situation deteriorated seri-a permanent settlement with regard to the divi- ouslv, partly also as a result of lagging exportssion of the assets and liabilities of the former of other aaricultural commodities.EAC corporations and institutions. He will also In contrast with the improvement in the agri-make recommendations with regard to the future culture sector, the situation was less bright onstructure and operations of the East African the mining side. The major negative factor re-Development Bank. Meanwhile, disbursements mained the depressed price of copper, whichagainst remaining World Bank loans to the EAC represents some 30% of the total value of ex-are being continued, as the Partner States have ports from Eastern Africa. Lower copper prices,individually taken responsibility for the undis- combined with a reduction in volume of copperbursed portions of those loans. exports (due, in part, to transport problems and

Lending to Borrowers in Eastern Africa, by Sectors(USS millions. Fiscal years.)

Annual AnnuLalAverage Average

1965-69(0) 1970-74 1975 1976 1977 1978

Agriculture and ruraldevelopment $10.4 $ 73.6 $124.2 $ 93.4 S235.8 $165.7

Education 13.2 18.9 65.0 64.1 37.3 57.7Energy - - 20.0 - - -IDF(2) - 14.3 - 69.5 46.5 35.9Industry - 9.2 115.0 - 23.0 45.0Nonproject - 6.0 60.0 - 45.0 -

Population and nutrition -- 2.4 - - - -

Power 16.6 45.2 65.1 63.0 55.0 48.0Technical assistance - - - 11.5 - 3.0Telecommunications 4.5 12.9 48.0 - - -Tourism - - - - 17.0 -Transportation 43.5 85.1 111.2 82.6 90.6 99.0Urban development - 0.6 44.5 - - 70.0Water supply and sewerage 0.2 4.4 3.5 56.5 22.0 36.0

Total $88.4 $272.6 $656.5 $440.6 $572.2 $560.3

Of which: Bank $52.8 $132.8 $344.4 $216.0 $311.7 $162.4IDA $35.6 $139.8 $312.1 $224.6 $260.5 $397.9

(0 Includes lending to Rhodesia and South Africa which are now considered past borrowers.(' Industrial development and finance. Includes lending to development finance conmpanies and small entcerprises.

Eastern Africa 39

Somalia's eduecation development has been aided bythree IDA credits totaling $19.3 million since 1971.These projects support Somalia's effort to improvethe qaltlity of its education system, as well as itsmanpowver development, including training schemesfor nomads, aqriciltdre, and healthl.

increasing costs), have severely strained the bal- ally lower than what it could have been. Theance of payments position of Zaire and Zambia, shortfall was due to the Region's limited insti-as both countries have substantial amounts of tutional and planning capacity, its shortage ofdebt service to pay and are largely dependent skilled manpower, and an increase in politicalon imports to support their productive sectors. instability. (The first two mentioned factors areAn exception in the mining sector was diamonds. the subjects of priority activities of EasternDiamond prices rose by some 42% over the African countries and of the Bank in its eco-previous year, boosting the value of exports of nomic studies and lending program.) Still, in-Botswana and Tanzania, and offsetting, to a creased export values and government revenuessmall extent, Zaire's low export earnings from allowed some relaxation in many of the strictcopper. austerity programs that had been initiated in the

The increase in regional export earnings mani- wake of the sharp increase in world oil pricesfested itself most dramatically in a rising level and inflation in the price of manufactured im-of gross foreign exchange reserves, which grew ports from the industrialized countries. A num-to about $1,900 million in 1977, or more than ber of countries laudably continued related50% over the average of the previous three restructuring programs whose objectives are toyears; a few countries, nonetheless, experienced adjust to the oil price hike by promoting exportssome declines. These increases notwithstanding, and by reducing dependence on imported foodsthe pace of investment in the Region was gener- and industrial inputs.

40 The Year'v Actrivities, vy Re•,'in

Considerable progress has been made in im- million), the (German) Kreditanstalt fUr Wie-proving the terms of trade of the rural sector deraufbau ($11.3 million), and the OPEC Spe-in several countries, which, along with invest- cial Fund ($7.3 million). The largest recipient ofments designed to support agricultural produc- co-financing was Madagascar, where six agen-ers, has provided more incentives and income cies provided $68.9 million for construction ofto the rural poptIlation. This improved situation the Andekaleka dam and power station. Tenhas resulted partly from movements in world other countries in the Region also received co-market prices, but, more importantly, from basic financing, including Tanzania ($32 million forpolicy changes designed to redress sectoral im- two projects) and Sudan (S36.7 million forbalances within member countries. Furthermore, three projects); co-financing complemented Banksome governments have also begun to review financing for one project each in Botswana,how public services might best meet the basic Burundi, Kenya, Lesotho, Malawi, Rwanda.needs of people. The bill for these services will Somalia, and Zaire.he a rapidly growing one, because of sharp in-creases in popuilation. Agriculture and Rural Development

Bank and IDA Activities With I I projects accounting for about 30%of the Region's lending, agriculture remained

Total lending in the Region in fiscal 1978, at the single most important sector of the Bank's$560 million. was about equal to the average of activities in Eastern Africa. As before, the mainthe previous three ycars. The number of loans areas of concentration were smal]holder foodand credits. at 35, was the same as the 35 aver- and cash crop production, with perhaps strongeraged over fiscal vears 1975-77. The average emphasis than before on the institutional andterms of fiscal 1978 lending to the Region im- infrastructural (rural roads projects in fourproved significantly as a result of greater avail- countries) aspects of agriculture. At the sameability of IDA funds. New IDA commitments, time. some large-scale enterprises in agrictilturetotaling $398 miilion, were $137 million higher contintied to receive support, especially wherethanr in fiscal 1977, while Bank lending, at $162 the national situation required a rapid expan-million, dropped by $150 million from fiscal sion of exports or production designed to reducc1977 totals. Icnding for agriculture and rural imports. In the category of import-substitutiondevclopment and urbanization accotinted for falls an oil palm project in Zaire, which will, atmost of the increase in IDA lending. In the last full maturity, provide about 33.000 tons of palmtwo years, agriculture and rural development oil, or 18% of projected national production,has absorbed over one-thirdl of the Region's through the planting of 12.000 hectares of oillending. while the focus on urban poverty has palm and the rehabilitation of existing com-been reflected in three projects (in Botswana, mercial oil palm plantations. The project wasKenya. and Tanzania). assisted by a $9 million IDA credit.

Funds committed under co-financing arrange- T'he increasing emphasis on assistance tomellts in fiscal l 978 for the Region added $214 smallholders in recent years is now reaching themillion to the total value of Bank and IDA stage where lessons learned from earlier projectslending. compared with $325 million in the pre- can be taken into account in designing newvioUs year. Fourteen projects were co-financed. ones. An example is the Shirc Valley Agricul-compared with 20 in fiscal 1977. Bank and IDA tural Consolidation Project in Malawi, assistedrcsources committed to co-financed projects by a $ 10.7 million IDA credit. The project iswere $251 million, compared with $349 million. designed to enhance the agricultural and infra-The fall in co-financing does not imply a com- structural development investments that havemensurate decline in the Bank's co-financing been made in the valley sincc 1968. (These in-efforts durinig the year or a reduction in co- vestments include two earlier IDA credits, onefinancing activities in the futtire. Co-financing in fiscal 1968, of $3.7 million, and a $10.5 mil-operations have tended to fluctuate rather widely lion credit approved in fiscal 1973.) The con-in recent years. solidation project will intensify the provision of

Co-financing agencies in fiscal 1978 incltided agrictiltural extension services; establish an irri-the Saudi Fund ($37 million). the Arab Bank gated seed multiplication farm and an affor-for Economic Development in Africa ($20.5 estation program; provide production credit;million), France's Caisse Centrale de Coopera- improve livestock extension services; expand ation Econoniique (S20.7 million), the Canadian fisheries development program; improve villageInternational Development Agency ($15.4 mil- health facilities and potable water supply; andlion), the Ministry of Overseas Development extend farm-to-market road networks. It will(United Kingdom) ($16.6 million), the African also provide social and infrastructural servicesDevelopment Bank/Fund (S7.8 million), the to about 70,000 families, and introduce im-International Fund for Agricultural Develop- proved farming practices, enabling abotit 40,000ment ($12 million). the Kuwait Fund ($10.5 smallholder families in the Shire valley to in-

Eastern Afri(a 41

crease their annual farm incomes from about specifically, at this stage, on the relatively un-$75 to $120. The project also addresses a num- developed western region, whieh contains 30%,ber of problems encountered during implemen- of' the Country's population, but which accountstation of the earlier projects, particularly the for only 5% of agriCultural research expendi-second project. when serious drought occurred. tures. The purpose of the research is to evolveand the project management ageney proved sustainable agricultural technologics for theunable to implement all aspects of the project various agropastoral production systems in theaccording to the planned schedule. The consoli- west, and to adapt them to practical farmingdation project addresses these problems through conditions. While direct beneficiaries of thismeasures such as the introduction of improved project obviously cannot be identified. the Ce-

technical packages for the tarmers (including dis- search results should be applicable to the I mil-tribution of improved drought-resistant cereal lion farmin- families in the area who live at, orvarieties). inereasing the number of extension below, the estimated poverty level.workers, and the undertaking of an irrigation Urban and Industrial Projectsfeasibility study for the Shire valley.

Another effort to reach the very poor through By comparison with other regions. Easternthe provision of a wide range of services and Africa is not extensively urbanized. However,infrastructure can be foLund in the Lesotho Basic urban population growth rates are high ( up toAgricultural Services Project (aided by an IDA 9% yearly in some cases), and low rates ofcredit of $6 million), which aims to reverse the employment growth in the mocdern sector haveserious decline in soil fertility due to overgraz- given rise to increasing numbers of urban poor.ing, poor cultivation methods, limited mixed Ini fiscal 1978, urban projects were put forwardfarming practices, and the land tenure system. for Francistown and Selebi Phikwe in Botswana,About 130,000 farming families, or almost for Nairobi. Mombasa, and Kisumu in Kenya,800,000 people, representing about two-thirds and for Dar es Salaam, Tanga, Tabora. Iringa.of the coLintry's population, will benefit from and Morogoro in Tanzania, accounting alto-the project. Basic agricultural services will be gether for about 1 2%. of the Region's totalprovided so as to increase production in five lending. With a Bank loan of $25 million and anmajor food crops (maize, sorghumn. beans, peas. IDA credit of S25 million, the Kensa Urbanand wheat). The continuing decline in per capita Project became the Bank's largest sites andincomes in the rural areas-now below $100 a services operation in the Region to date. F'urther-year-is expected to be arrested, for about more, water supplv projects Aerc started in70,000 families are projected to experience Nairobi and in Mogadishu. Somalia.direct increases in their farm incomes. The A feature shared by the three urban projectsproject's training program will take into account is the specific targeting of services (especiallythe fact that women and young people do most housing) to the urban poor, through foCusigllof the farm work in Lesotho, as a majority of on the upgrading of existing areas of squatterthe able-bodied men work in South Africa. concentration and, in the case of the SecondAssistance will also be furnished the Ministry Sites and Services Project in Tanzania (aidedof AgriCulture in order to strengthen its insti- by a $12 million IDA credit), through a newtutional capabilities. Additional funds for this program of "surveyed plots." The "surveyedproject, amounting to $12.6 million, will be con- plots" are to be supplied only with water andtributed by the European Development Fund, plans for on-site services; basic infrastructure isthe Federal Republic of Germany, the United to be furnished by the residents themselves. 'FheKingdom, and the UNDP. cost per household of these plots is $25, com-

As far as the institutional aspects of agricul- pared with $385 for conventional squatter up-ture are concerned, the Bank has continued to grading. Under all three projects. the cost ofpursue project opportunities that attempt to re- services has been kept at a minimum to bringmove constraints affecting smallholder produc- them within reach of the target group and,tion and to set a broad foundation for future through full, or ncar-full, cost recovery, thedevelopment. One such project approved during projects will be able to be replicated. Even with-the past fiscal year was a Grain Storage and out future replication, the Tanzania project willMarketing Project in Ethiopia (assisted by a benefit more than 315,000 low-income urbanS24 million IDA credit), which will provide for dwellers (about 26% of the country's urbanconstruction of storage facilities and for im- population): in the Botswana project (assistedproved market and crop intelligence and fore- by an $8 million Bank loan), 60% of the popti-casting, and an increased role for the pLiblic lation of the two towns concerned will besector in marketing. Another innovative project affected; and in the Kenya project, about 30,000of this kind was the Sudan Agricultural Research plot holders and urban residents will be aided.Project designed to help correct the imbalance The Tanzania project has a small-scale industryin agricultural research efforts among the vari- component that will create approximately 870ous regions of the country. The project focuses new jobs at an investment cost of $650 per job

42 The Year's Activities, by Region

under an experimental program; the Kenya 100,000 people employed in "formal" manufac-project has a small-scale industry component turing, 20% work for firms with fewer than 50that provides for the development of 960 ser- employees. The remainder are employed in ac-viced sites for small industries, as well as loans tive "informal" industrial firms of even smallerfor the construction of workshops. The com- size. Recognizing the importance of the sector,ponent in the Kenya project is to be comple- the Kenyan government is changing its strategymented by the Bank's first small-scale industry for industrial development in order to promoteproject in the Region. more efficient industries and markets, encourage

That particular project, aided by a S10 mil- the use of local raw materials, create employ-lion IDA credit has, as its primary focus, insti- ment through labor-intensive methods of pro-tutional support for the Kenya Industrial Estates duction, and achieve a better balance in the(KIE). The KIE, a semi-autonomous govern- geographical distribution of employment oppor-ment-supported agency, and the principal insti- tunities. The project will make resources avail-tution through which technical assistance has able for loans for working capital and equip-been channeled to small industrial enterprises, ment, and for the construction of 150 workshopswill be reorganized and strengthened. The inin 10 rural industrial promotion areas, and 40dustrial sector has been the fastest growing sector workshops in Nairobi. Factories will be con-of the Kenyan economy in recent years, with structed, and technical assistance and trainingover 500,000 people employed in "formal" and will be provided to accelerate the development"informal" industrial establishments. Of the of small industries.

Western Africa

Trend in Lending, 1965-78(US$ millions. Fiscal years.)

Per capita (00) Number of OperationsBorrowers, Population(l) GNP 1976(2)fiscal 1976-78 (000) (US$) -

Benin 3,200 130 -Cameroon 7,606 290Chad 4,120 120Congo, People's Republic

of the 1,360 520Gambia, The 540 180Ghana 10.136 580Guinea 5,695 150Ivory Coast 7,028 610Liberia 1,600 450 -OMali 5,840 100Mauritania 1.355 340Niger 4.730 160 = 509.3 -Nigeria 77,056 380 424.2 450.1 392.1 (35) -Senegal 5,135 390 (30) (34) (291Sierra Leone 3,053 200 199.3Tog 2.280 260 = Q72S 26)W)

Upper Volta 6,170 110 _ NOTE: The 1976 estimates of GNP per capita presented above 1965-69 1970-74 1975 1976 1977 1978

are from the 1977 World Bank Atlas, published in January Annual Averages1978, and are identical to those shown in the WorldDerelopmrent Indicators, published in June 1978.

(0) Estimates for mid-1976.'> Atlas methodology, 1974-76 base period.

Membership in the Western Africa Region tween approximately 6% and 10% yearly, andincreased by one to 22 countries when Sao have become a source of serious concern forTome and Principe joined the Bank in Septem- governments, as unbridled growth invariablyber 1977. The Region's mid-1976 total popula- results in substandard living conditions.tion is estimated at slightly over 150 million,of which Nigeria, alone, accounts for about Economic Developmentshalf. Preliminary estimates from some popula-tion censuses carried out since 1975 generally Over the past fiscal year. the economic en-indicate larger populations and higher demo- vironment of the Region has been less favorablegraphic growth rates than had previously been than in the year before in two important respects.believed. While high population densities exert First, commodity prices for most Westernexcessive pressure on the land in a few areas African products generally leveled off, or de-along the coast and in parts of the Sahel, the clined from the peaks reached by some of themRegion. as a whole, is sparsely populated. Popu- at various times between fiscal 1974 and fiscallation growth, however, is rapid everywhere- 1977 (although many havc remained above his-at 2.7% annually, on average-reflecting still torical levels).high fertility rates. The social costs of continued Second, poor weather has, once again, ad-rapid demographic expansion are being felt espe- versely affected crop production, especially, butcially in the fields of education, health, and not exclusively, in the Sahelian countries. Onemployment. The rates of growth of Western the other hand, export competition among indus-African cities, principally the capitals, vary be- trialized countries has helped to contain import


prices for the Region; indeed, the prices of 25% in volume and by an additional 4% inimported foodstuffs-wheat, sugar, and, to a price from their levels of a year ago. The gov-lesser extent, rice-that weigh heavily in some ernment reacted by curtailing budgeted publicof the countries' import bills, have actually development expenditures and by resorting, fordeclined. the first tirne, to borrowing ($1,000 million) in

Such external factors have affected countries the Eurodollar market so that priority invest-in different degrees and, given the great diversity ment projects might continue. At the same time,of initial economic conditions and government harvests of food crops were below normal, add-policies, have resulted in quite different levels ing to food imports; these increased importsof economic performance and a further widen- helped boost the rate of domestic price inflationing of differences between real income levels to about 30%. In addition, Nigeria's terms ofamong countries-a phenomenon that has per- trade worsened appreciably. Though the manu-haps dominated the development of Western facturing and the services sectors continued toAfrica over the past 15 years. In fiscal 1978, expand, their combined gains hardly outweigheda half dozen countries - Benin, Cameroon, the declines registered elsewhere in the economy;Guinea, Ivory Coast, Niger, and Togo- on balance, therefore, per capita national incomeachieved rates of growth in gross national probably dropped somewhat. The loss in realproduct (GNP) significantly above population income appears to be more pronounced for thegrowth rates. The success of these six countries urban population, whose wages and salaries re-has been the result of continued good export mained substantially fixed, than for farmers,performance-principally based on cocoa, cof- who benefited from sizable increases in pro-fee, and timber for Cameroon and Ivory Coast; ducer prices, which, in some cases, exceeded theuranium for Niger; bauxite expansion for inflation rate.Guinea; a recovery in phosphates for Togo; and, Since the beginning of 1974, Western Africanin the main, transit services to Nigeria, in the economies, whether growing or stagnating, havecase of Benin. Marginal increases in per capita been confronted, almost without exception, withincomes may also have occurred in the Central severe internal and external imbalances. ThereAfrican Empire, Gabon, and Guinea-Bissau. In are three main reasons for this condition. First,all the other countries of the Region, there was, rapid inflation has proved to be more than aat best, no progress. Even oil-exporting coun- passing phenomenon, although some dampeningtries did not perform particularly well, as is of the rate of increase in prices seems to havestrikingly illustrated by the case of Nigeria. occurred during the past year (except in Ghana,

Fiscal 1978 was a momentous one for Nigeria: where the rate of inflation continued to rise).its sustained economic upswing since 1970 began Mediocre crops, budgetary deficits helped alongto falter as petroleum exports plummeted by by expansionary monetary policies, and still ris-

Lending to Borrowers in Western Africa, by Sectors(USS millions. Fiscal years.)

Annual AnnualAverage Average1965-69 1970-74 1975 1976 1977 1978

Agriculture and ruraldevelopment $11.4 $ 39.0 $323.0 $ 92.2 $162.1 $195.4

Education 4.7 27.2 32.4 28.3 14.8 23.8IDF(1) 1.2 2.8 4.0 26.6 11.2 72.0Industry 6.0 0.1 - 60.0 - -Nonproject - 16.0 - - -

Power 24.0 19.6 - 1.8 57.0 18.2Technical assistance - - - - 12.4 6.3Telecommunications 0.2 7.9 23.0 5.2 - -

Tourism - - 9.7 4.0 13.6 -

Transportation 38.7 80.4 23.1 232.0 77.0 136.4Urban development - 1.6 - - 44.0 8.2Water supply and sewerage 1.0 4.7 9.0 - - 49.0

Total $87.2 $199.3 $424.2 $450.1 $392.1 $509.3

Of which: Bank $63.8 $122.4 $303.7 $291.8 S259.1 $303.4IDA $23.4 $ 76.9 $120.5 $158.3 $133.0 $205.9

(1) Industrial development and finance. Includes lending to development finance companies and small enterprises.

Western A frica 45

A

Senegal, Western Africa's largest r ic e importer, istrying toi hecome self-sufficient in a numnzber offoodcrops. Foar projects, suipported by IDAcredits totalinzg $34.5 million, are helping to remedythis sia/ol ion. Tvo of the projects, hosed onirrigation, are in the Nortlh along thze Senegal River.The other two projects, in the traditionzal rice-growc'ng r egion of Casainconce in the South, involvewater control schemes, soil and hydrologicalsarvcys, and the invstllation of 35 smnall cooperativeri e mnills.

ing import prices appear to be the most common Third, balance of payments pressures, due tocauses for inflation in the Region. either depressed export earnings (e.g., Mauri-

Second, inflation (and the resulting pressures tania and Nigeria) or increased imports (e.g.,to increase urban wages and salaries, as well as Ivory Coast) have led countries to tap externalagricultural producer prices), rising debt-service resources more systematically. As of Decemberpayments, and built-in factors, such as the con- 31, 1977, 13 countries in the Region were beingtinuous growth of school enrollment and, at assisted by the International Monetary Fundtimes, poorly conceived employment policies in (IMF). In the last six months of the fiscal year,the public sector have all contributed to gener- additional requests were being processed forally poor or deteriorating budgetary perform- drawings on the IMF under the second creditance. Poor performance has been marked by tranche and the Trust Fund. More generally,higher current expenditure levels and decreas- external public borrowing, particularly froming public savings, although public savings in private sources, increased rapidly, and has nowsome cocoa-exporting and coffee-exporting coun- reached unprecedented levels, while averagetries continued at high levels during the year. terms of borrowing have hardened significantly.In quite a few cases, such as in Congo, Ghana, Difficulties in meeting debt-service payments areGuinea, and Mali, the public enterprise sector being experienced in varying degrees by severalas a whole, has aggravated, rather than alle- countries, and Sierra Leone had to obtain debtviated, the lack of public savings-despite gov- relief from the "Paris Club" during the past year.ernments' commendable efforts to improve the Against this rather bleak background for themanagement of individual firms. Region in general, some favorable developments

46 The Year's Activities, hy Region

occurred or have been strengthened. There was industrial development and finance (14% ), andconfirmation of commercially exploitable petro- publiC utilities (13 % ). The continued emphasisleum resources in Chad and Ivory Coast, and in recent years on the agricultural sector has beenthe prospect of such in Ghana; active explora- directed toward the smallholder farmer throughtion continued in four or five other countries, both crop development and the varied extension,Cameroon is a step further along, and recorded training, and social services provided in inte-its first exports of indigenous crude oil in Febru- grated rural development projects. Transporta-ary 1978. Niger continued to enjoy rising earn- tion lending included assistance for projects forings from exports of uranium concentrate. Even all types of transport. While fceder roads are ofmore significant perhaps, because it reflects primary importance in rural areas, rail, port, andgovernments' conscious efforts to strengthen the highway projects can serve more than the singleeconomy of the Region as a whole, further borrower, as witnessed by four projects ap-progress was made towards regional economic proved during the year: the joint Ivory Coast-cooperation. The 16-member Economic Com- Upper Volta rail project, the Senegal rail project,munity of West African States (ECOWAS) which also serves Mali. the Benin port projectbecame operational in July 1977, when both the serving also Niger and Nigeria. and the Came-Secretariat in Lagos and the Fund for Coopera- roon highway project, which also benefits Chad.tion, Compensation. and Development in Lome The scope of operations in the area of devel-opened their dloors for business. The Bank has opment finance companies was especially broadestablished contacts with these institutions, as during fiscal 1978. It represented, on the oneit has done before with other regional organiza- hand, assistance to the Nigerian Industrial De-tions in Western Africa, such as the West Afri- velopment Bank, an institution with annualcan Development Bank (BOAD), with a view lending of about $78 million for medium-scaleto cooperation and coordination of activities. and large-scale industrial endeavors. and, on theIn addition, the six-member francophone West other, support to the national development banksAfrican Economic Community (CEAO) c2) cre- of Niger and Upper Volta for expansion of smallated a new Solidarity Fund, in whose design and and medium-scale firms and for training andinstitution the Bank provided technical assist- technical assistance to support artisans and smallance. The Fund is to aid particularly its less entrepreneurs. Within the public utilities sector,developed member countries by guaranteeing water supply and sewerage lending showed theloans, giving loans and subsidies. and financing largest increase.studies for high-priority development projects. Continued efforts to secure co-finiancing dur-

ing fiscal 1978 helped increase the total llow

Bank and IDA Activities of resources to the Westcrn Africa countries.Seventeen of the 35 projects involved co-finane-

Bank and IDA lending to the Region reached ing for a total amount almost matching thea new high during fiscal year 1978. A total of $234 million provided by the Bank and IDA.35 loans, totaling $509 million, were approved. In fiscal 1977, co-financers committed resourcesThis amount represented a 13% increase over totaling $299 million for 12 projects.(During thethe previous high (in 1976), when the totals past four years, 56 projects have been co-were affected by several exceptionally large financed, for a total of $945 million, an amountprojects. While Bank lending increased 20%( representing 130() .K. of Bank and IDA lendingover the average 1974-77 level. IDA credits were for these same projects.) Co-finalncin'g came f rom55%, higher than the average for that period, sources inclu1ing the Canadian Internationaland exceedicdl 5200 million for the first time. Development Agcncy ($41. million), theTherc was a contiluLed emphasis on lending to Caisse Centrale die Cooperation Economiquethe Region's poorest countries: they accounted (CCCE) ($27 million), the Kuwait Fundfor almost half the total number of IDA crelits. ($19.7 million), the Fords d'Aide et de Coop6-

The five-year period, fiscal 1974-78, showed ration ($15.3 million), the Commonwealtha 132K6. increase in lending over the periodl, Developmenlt C'o-poration (S 14.5 million), thefiscal 1969-73. Average annual Bank lending of Arab Bank for Economic Development in.5264 million increased hy 1 '4K . .hile IDA Africa (BADEA) ($1. 33 mlian . the Saudilending brought the avcrage annuLal per capita Fun(i $11 I million), the F:Lu- upcan Insvcstlmienltlevel of IDA credits to the Rc-ion to $2.37. as 13Bank ($9.2 million), the Al-ic...n Dcvelopmentcompared with a ICveI of SI.(09 durl-ing the Bank/Fund ($8.9 million). hc European Dc-period, fiscal 1969-73. vClopmCnt FUnd (S8.9 miliiol . and Norway

TFhc sectoral distribution of total lendling infiscal 1978 generally reflected that which pre-vailed during the entire fiscal 1974-78 period. Beni, Cape Verde The Gambia. Ghana. Guinea. Guinea-

Agricultture claimed the largest share (38%- Bissau, Ivory Coast, Liberia, Mali, Mauritania, Niger,increasing from only 17% during fiscal years sNigeria, Senegal, Sierra Leone, Togo, Upper Volta.(O) Ivory Coast, Mali, Mauritania, Niger, Senegat, Upper1969-73), followed by transportation (27%) Volta.

Wtesiern A fricn 47

($8.3 million). Three projects itn Liberia and A two-pronged attack on Upper Volta's urbanChad were co-financed, two each in Benin, problems was launched dluring fiscal 1978 inIvory Coast, and Cameroon. and onle each in the form of an $8.2 millioni IDA cicdit to hclpMali, Niger. Senegal, Sierra ILeone, and Togo. finance an urban dCeveloplm-enCt projCCt anld aThe largest co-finaniced project approved dur- $4 million IDA credit to help finance a projccting fiscal 1978 involved lcnding bv IDA ($11 for artisanal anld simall and mcdiuLm1-scale cntcr-million), aid agencies of Canada. France, and prise dcvelopmcnt. These projects wCrC dcSinicdNorway (SI0 million, $1 .5 million, and $8.3 to ameliorate both the living and employmentmillion, respectively), BADEA ($4.6 million). conditions ol' the most disadvantaged urbanthe CCCE ($3.1 million), the Abu Dhabi Fund dwellers. The urban project includCs basic infra-($2.6 million), and the African Development structure improvement loans, and tfuLnds folBank, as agent of the Nigerian Trust FuLnd ($2.9 provision of communLity facilities and socialmillion) to assist the Government of Benin in scrvices. More than 100,000 people living infinancing a $46.1 million project for the expan- OuagadoLugoU and Boho Dioulasso are cxpectcdsion and modernization of the port ol Cotonou. to benefit from thc urban Llpgr.lading, sites and

services, and watcr supply distFihution compo-

Innovative Projects in Nontraditional Sectors nents of the project. Job creationi will he stimiu-lated bv the $4 million cre(lit, which will also

A $6.3 million IDA credit to Senegal for expand training opportunlitiCs to urhan artisans.technicaLl assistance to the "parapublic" sector as well as provide training in the constructionis the first operation of its kind attempted by trade, with the trainees actually constructing thethe Bank. (The parapublic sector is composed community centers to be financed under theof public enterprises that are wholly govern- urban project. Some 75() jobs are to be createdment owned, and mixed companies owned by in the modern sector, and about 1,500 jobs ia\ygovernment and privatc entrepreneurs.) The be created in the traditional sector as a resuLltproject responds to the government's expressed of the project.need to increase its capability to plan, execute.and manage development projects in all sectors. Meeting Rural Sector NeedsThe project is also designed to resolve the prob-lems facing the government in its financial over- Two IDA creclits, for $8.5 millioni and $13sight of public enterprises and mixed companies. million, will help improve food crop and cashThe IDA credit, which provides about 30 man- crop production in particularly low-inconmeyears of advisers and consultant services, sup- areas of' Cameroon by providing packages ofports a three-year program aimed at strengthen- inputs and services especially adapted to theing the efficiency of government organizations social, economic, and natural environment. Thecharged with supervision of the parapublic sec- first project will support an extension of activ-tor; upgrading the auditing, financial manage- ities in areas where new development zones inmcnt, and accounting procedures of parapublic the eastern part of thc country werc recentlyenterprises; and training government officials designated, and will also strengthen orngoirngdealing with the sector. programs in thcse and in the older development

An agricultural project. to be assisted by a zones. The primc objectives of the project are54.5 million IDA credit, will attempt a new to increase protLuctivity and incomes amongapproach to reforestation in Niger. Based on 13,200 poor farm families by emphasizing foodstudies of the Sahel region, which identified crop development, as well as improvement inagrarian and grazing pressures as major factors cash crop earnings (coffee and cocoa): and tocontributing to the destruction of natural forest better the environment by providinlg health carecover, a pilot and technical assistance project services and water supply facilities. At full dc-has been designed to provide a sound basis for velopment, net per capita farm incomes of theproceeding with a larger-scale national develop- project beneficiaries are expected to increasement program for Niger's forestry resources. from $95 to a maximum of about $180, and,fncluded in the project are pilot irrigated and on average, to about $140. A notable featurerainfed tree plantations, which aim at more effi- will be the hiring of female extension workersciently mecting the wood requirements of urban in a sociolo-ical environment where womllencenters; provision of equipment, vehicles, and farmers have sole responsibility for f'ood cropsupplies to improve ongoing rural forestry activ- production. but are precluded by custom fromities; ref'resher courses in rural reforestation working with male extension workers. Feedertechniques for field staff dcealing with rural for- roads in the project area will he constructedestry activities; and research. Emphasis has been under a separate project also approved duringplaced on securing the participation of the rural the past year.population, a necessary prerequisite to the suc- The Western Highlands (Cameroon) Ruralcess of long-term forestry development in the Development Project will assist the developmentcountry. of extremely poor areas that are characterized

48 The Year's A clivities, by Region

by a high population density, mountainous ter- approved in fiscal year 1971, achieved its targetrain, and heavy rainfall. In these areas, the of establishing 17,400 hectares of high-yieldingpressure of population (17% of the country's cocoa in the principal cocoa-growing territorypopulation lives on 3% of its land area) has led in the central part of the former Western state,to intensive cultivation of nearly 95% of the now Ovo, Ondo, and Ogun states. The projectcultivable land, including steep slopes. Declin- was implemented by a well-managed Cocoaing soil fertility and spreading erosion are serious Development Unit, staffed entirely by Nigerians.problems in large parts of the area. The project Not only were the project's technical and pro-provides a complementary package of inputs, duction objectives achieved, but the 1 8,250techniques, and infrastructure aimed at the participating farmers turned out to be more thanfarming system as a whole. By developing in- double in number the 8,000 estimated at ap-stitutions, by training people, and through the praisal. Yields today are 963 kilos a hectare forintroduction of appropriate procedures and new plantings and 840 kilos per hectare ontechniques, the project will help improve the plantations rehabilitated during the project. Theincomes and welfare of some 600,000 rural yield figures, in both cases, are more than doubleinhabitants who have per capita incomes of $70, the current national average. The return toor less than 25% of the national average ($300). farmers, at almost $9 equivalent per man-day, isAbout 220 water points will provide 18,000 much higher than expected at appraisal as arural families with safer and more accessible result of increased yields and increases, sincewater, while the construction of simple water 1971, in cocoa prices. The overall economic ratecontrol works will enable about 400 hectares of of return of the project is now estimated at 26%currently uncultivable bottomland to be put -nine percentage points above the appraisalinto productive use by some 1,300 rural families. level. Strong institutional support, including that

The Bank's first cocoa (as well as its first of the Cocoa Research Institute, the Universityagricultural) project in Nigeria was successfully of Ibadan, the Cooperative Bank. and Coopera-completed during the past year. The project, tive Marketing Societies, was highly instrumentalfinanced in part (40%) by a $7.2 million loan in the success of the project.

East Asia and Pacific

Trend in Lending, 1965-78Pe r capita (US$ millions. Fiscal years.)

Borrowers, Population(l) GNP 1976(2)fiscal 1976-78 (000) (US$) (00) Number of Operations

Fiji 580 1.150 -Indonesia 135,191 240Korea, Republic of 35,969 670 =Lao People's Democratic 2s0

Republic 3,250 90 - 1,726.2 -Malaysia 12,653 860 - (37) -Papua New Guinea 2.829 490 = 1,458.5 1,475.0 Philippines 43,293 410 I soc (35) (36)Thailand 42,960 380 - _ -

NOTE: The 1976 estimates of GNP per capita presented above - 976.4are from the 1977 World Bank Atlas, published in January - (24)1978, and are identical to those shown in the World LOOO U24Development Indicators, published in June 1978. _*

(') Estimates for mid-1976. -k-> Atlas methodology, 1974-76 base period. - 4657 _*

S0_0 (22.4) _ * * -

- 220.8 _lDi _l -

1965-69 1970-74 1975 1976 1977 1978Annual Averages

The countries of this Region, inhabited by Malaysia and Korea, and their growth paths arepopulations of varied cultural and ethnic back- likely to continue to differ in the future. Amonggrounds, have shown their ability, over recent the factors determining long-term economicyears, to weather short-term fluctuations in the prospects, the demand and prices for the com-world economv and to continue their develop- modities produced and exported by the Regionment efforts. As in the case of other countries are generally expected to be favorable over thewith open economies, they were affected by the coming decade. Potential sources of futureboom, subsequent recession, and concurrent growth are the rapidly expanding industrialstrong inflation in the industrialized countries sector, which is becoming an increasingly im-during the period, 1973-75. These factors caused portant factor in an already fairly diversifiedsharp fluctuations in the demand for, as well as regional export structure, and a broad agricul-in the prices of, their commodity exports. In tural base, which generates both food and pri-addition, the oil-importing countries had to make mary products for export. Past policies thatdifficult adjustments to higher oil prices. Con- encouraged high investment are continuing tosidering all these factors, the economies of the pay off, and with the real burden of servicingcountries of the Region have performed remark- medium-term and long-term debt at a tolerableably well. level, and good credit ratings in foreign capital

East Asian and Pacific countries are at differ- markets, there is little risk that short-terment stages of development, with per capita in- fluctuations in export earnings will require cut-comes ranging from a low level in populous ting back on imports or lowering economicIndonesia to an intermediate, middle level in growth rates.


Pairs of Opposites tinued, exceptionally high prices for their sugarexports and, in the case of Thailand, for rice and

Indonesia and Malaysia, the two important other cereal exports, as well. Their balance ofoil producers within the Region, have improved payments experienced the delayed effects oftheir terms of trade since fiscal 1973. Their tra- higher petroleum prices in 1976 and 1977, andditional exports (rubber, timber, and tin) suf- current account deficits increased in both coun-fered temporarily, however, from low demand tries, but more particularly in Thailand. For theand lower prices in 1974 and 1975. Indonesia time being, the draw-down of foreign exchangehas also been affected by the need to meet the reserves in both countries has been limited bydebt obligations of Pertamina, the state oil com- relying on foreign borrowing, and the GNPpany. But, by fiscal year 1977, both countries growth rate has been maintained at just abovewere recovering; the earlier gains in their terms 6% for the Philippines, and at 5.5%c for Thai-of trade were restored, and foreign exchange re- land (corresponding to the average rate for theserves increased. In Indonesia, reserves reached 1974-77 period for both countries).a level, at the end of 1977, that amounted to The Republic of Korea. the most industrial-about four months of imports. The country's ized countrv among the Bank's large borrowerseconomy grew an estimated 6.5% in 1977, in the Region, and hard hit by both high foodsomewhat lower than in 1976. mainly because and petroleuLm prices in 1974 and 1975, man-of lagging food prodtuction, particularly rice, but aged to avoid any deceleration in its economicthe 1977 growth rate corresponded to the aver- growth; indeed, it succeeded in continuing itsage for the 1974-77 period. Tn Malaysia, a re- strong export growth of manufactured goodscent oil producer, and one which is expected to through a vigorous drive to expand and diversi-become an exporter of natural gas by the early fy markets. In 1977, Korea became the leading1980s. current account surpluses and foreign exporter of manufactured goods among theexchange reserves increased to very comfortable developing countries.levels by the end of 1977. Growth in gross na- Its export volume increased hvy 1°8Y in 1977,tional product (GNP) was 8% in 1977, only following a large increase in 1976. and its termsslightlv below the rate achieved in 1976. of trade improved by 6%. The i. rge balance of

The Philippines and Thailand, whose exports payments deficits of 1974 and 1975 were elim-are quite different from those of Indonesia and inated, and a small surplus was achieved in 1977.Malaysia, experienced fluctuations in their non- By the end of 1977, gross foreign exchangeoil commodity terms of trade virtually opposite reserves had increased to a level equal to aboutto those experienced by the latter two countries. four months of imports. Korea's GNP growthDLuring the recession years of 1974 and 1975, rate exceeded 10% in 1977, having risen tothe Philippines and Thailand were shielded from 15% in 1976 from 8% per year in the previousthe effects of higher petroleum prices by con- two recession years.

Lending to Borrowers in East Asia and Pacific, by Sectors(US$ millions. Fiscal years.)

Annual AnnualAverage Average1965-69') 1970-74(1) 1975 1976 1977 1978

Agriculture and rurlaldevelopment 5 43.3 $110.1 $193.0 $ 470.0 $ 522.5 $ 794.2

Education 7.1 37.5 22.5 93.0 83.0 40.0IDF2) 16.0 41.6 140.0 160.0 232.5 330.0Industry - 10.3 145.0 70.0 80.0 14.8Nonproject - - 100.0 75.0 - -

Population - 3.6 25.0 - 37.5 33.1Power 44.1 87.0 147.0 125.0 196.0 259.0Technical assistance 0.4 2.6 - 13.0 - -Telecommunications 6.3 18.3 - 31.0 - -Tourism - 8.2 - - - -Transportation 96.3 127.2 124.4 342.0 248.0 246.5Urban development - 3.2 40.0 58.0 52.5 8.6Water stupply and sewerage 7.3 16.1 39.5 21.5 23.0 -

Total $220.8 $465.7 $976.4 Sl,458.5 $1.475.0 $1,726.2

Of which: Bank $204.4 $332.5 $972.0 $1,458.5 $1,452.0 $1.586.9IDA $ 16.4 $133.2 $ 4.4 S _ $ 23.0 $ 139.3

"I Includes lending to Japan and Nevw Zealand which are now considered past borrowers.< z Industrial development and finance. Includes lending to development finance companies and small enterprises.

East Asia and Pacific 51

The Alalaysian State of Sabah's ports will beprovided wvith cargo handling eqoipir2ent andcadditionial berth.s. Engi2neering sArvices, incliudinigsiltartioi smtdies, and technical aisistance andtraining to the Sabah Ports A uthoritv are part ofthe projec t, assisted by a $14 in illion World Bankl/(5ii approved in the past fiscal year. Thze phIotoisz f a beritlh inl Koto Ki(rlanba/n.

The smaller Pacific island countries in the tial bilateral financial and technical assistanceRegion such as Fiji, Papua New Guinea, and under special agreements, e.g.. Australian assist-Western Samoa, which suffered more during the ance to Papua New Guinea. Funds from multi-worldwide slowdown because of the openness lateral sources such as the World Bank and theof their economies and heavy dependence on the Asian Development Bank, although a smallinternational situation, showed some signs of proportion of the lending of such institutions torecovery during the last year. Papua New the Region, contribute considerably to the de-Guinea benefited from high export prices of velopment of these smaller countries.coffee, cocoa, and copra, and Fiji benefited from Last year's Annual Report noted that the coun-the assurance of a guaranteed minimum price tries of the Region seemed to have weatheredfor sugar under the Lome Convention. the storms of the three-year period, 1974-76.

These small countries, isolated from the main The year 1977 provided further evidence to thiscenters of world population, face serious prob- effect, and most economic indicators have con-lems arising from the small size of domestic firmed the trend of continued economic growth.markets, limited domestic raw materials, heavy It is important that growth continue if progressdependence on imports, and high transporta- toward solving the problems of employment,tion costs. These countries also have a significant poverty, and income distribution is to be made.subsistence sector with low-income levels that As a result of high birth rates in the 1950s andneeds to be brought into the monetized sector of early 1 960s, growth in the labor force continuesthe economy through employment-creating and in most countries of the Region at annual ratesincome-generating activities. of about 3 %. Most countries are finding it diffi-

They rely heavily upon capital inflows to cult to provide sufficient new opportunities forassist their development; some receive substan- productive employment, even at GNP growth

52 The Year's Acivities. by Region

rates of 6% and 7%. In nearly all the countries tured exports. Within the Association of South-of the Region, most people still live in rural east Asian Nations (ASEAN), created 10 yearsareas, and are dependent on agriculture for in- ago by Indonesia, Malaysia, the Philippines,come and employment. Agricultural growth has Singapore, and Thailand, member governmentsgenerally exceeded 4%, and in countries where are exploring ways to share a wider internalnew land is still being developed, such as common market among themselves and toMalaysia and Thailand, growth in the agricul- strengthen the competitiveness of their productstural sector has been between 5% and 6% for in world markets.many years. Food production has been sufficient,so far, to avoid increased dependence on im-ports. Thailand has always been a rice exporter; Bank and IDA LendigKorea has become self-sufficient, while Malaysia Lending by the World Bank to the countriesand the Philippines are moving towards rice in the Region during fiscal year 1978 totaledself-sufficiency. In Indonesia. however, recent $1,726.2 million, including $139.3 million byrice crops have been below expectations. IDA, for 37 projects. The amount of lending

Fewer and fewer opportunities exist in agri- exceeded the level achieved in fiscal 1977 byculture to absorb additional workers or to prom- $251.2 million, while the number of projectsise them rising incomes. Increasingly, therefore, increased by one. IDA lending increased bysome countries are relying on the industrial $116 million. Of the 37 projects assisted, 10sector to provide new employment opportunities. involved co-financing efforts totaling $220In Korea, for instance, it is estimated that indus- million. In fiscal 1977, five projects were co-try, relying to a significant extent on manufacttir- financed; the amount of co-financing involveding for export, already provides nearly half the in fiscal 1977 was $204.1 million. After aadditional new employment. In Malaysia, Thai- three-year pause, IDA lending to Indonesia, theland, and the Philippines, where industrial Philippines, and Thailand was resumed. Whilemanufacturing contributes between 15% and all Bank and IDA lending was for specific25% of gross domestic product (GDP), the projects, the scope and objectives of many ofsector holds the promise for further growth and them were sector-wide. A substantial numberfor providing more employment opportunities. were repeater projects, and supported sectoralIn Indonesia, on the other hand, efforts to direct objectives and development strategies initiatedindustrial development towards labor-intensive by the borrower and the Bank under projectsmanufacturing activities are still at an early stage. financed in previous years.

Agricultural lending amotinted to $794.2GJrowth and Exports million, or 46% of the Region's total. Al-

though many of the 15 agricultural projectsWhile most of the Region's countries are large provide direct support for increased production

enough to have important domestic markets, of food crops and smallholder tree crops, manyfuture economic strength is likely to depend, to also encompass extension and credit services,a significant extent, on export-induced growth. and include components such as village roads,The large countries have export shares ranging and water supply, health, and education facili-between 18% of GDP (for the Philippines) to ties. Industrial lending, frequently for financial51 % (for Malaysia). Some countries, such as assistance to small-scale enterprises, and on-lentMalaysia or Thailand, which, not many years through financial intermediaries, totaled $344.8ago, relied on the export of only a limited num- million. Transportation, electric power, and edu-ber of agricultural crops and primary products, cation projects accountedformost of theremain-have broadened the range of their exports; they ing $587.2 million. InclUded in this latter amounthave managed to adjust to international price are projects benefiting only, or mainly, rural pop-changes and have taken advantage of market ulations, such as those in support of rural electri-opportunities. Korea, which has achieved an fication programs or adult nonformal education.annual growth of exports of about 30% over thelast few years, has relied entirely on manufactur- Broadening Rural Developmenting to broaden its export structure. Koreanexports of manufactures account for about 90% Four projects, one each in Korea, Laoof its total exports. The maintenance of appro- People's Democratic Republic, Malaysia, andpriate incentives for exporters, and a flexible the Philippines are financing multisectoral in-exchange rate policy combined with an aggressive vestments in rural areas. The multisectoral Ruralexport drive, have been mainly responsible for Infrastructure Project in the Philippines, assistedKorea's continued good export performance. by a $28 million IDA credit, provides a range ofSome of the other countries which, so far, have infrastructure facilities and basic services to thebased manufacturing activities mainly on import rural population of six provinces that werestibstitution and production for the domestic selected mainly on the basis of present low-market are now beginning to turn to manufac- income levels. About 2.1 million people live in

Eas(t Asia and Pacific 53

the six provinces, nearly 90% of them in rural phase of an Accelerated Rural Electrificationareas. Project components include communal Program, will also receive $8 million in financ-irrigation systems, "barangay" (village) roads, ing from the Canadian International Develop-small ports, rural water supply facilities, and ment Agency (CIDA), and $7 million from therural health stations providing health, nutrition, OPEC Special Fund.and family planning services. The project builds Agricultural extension, primarily an educa-on ongoing programs in these sectors and in- tional activity, is essential to the transler of newcreases their scale. The Bank's assistance, technologv to small farmers. The Bank is alreadytherefore, emphasizes the strengthening of the supporting national extension projects in Indo-technical and administrative capabilities of the nesia and Thailand. A National Extensionimplementing agencies and the introduction of Project in Malaysia is now being assisted by aimproved methods to monitor and evaluate the Bank loan of $19 million. The project providiesdevelopmental impact of these programs. Other cxtension services to an estimated I million verycomponents necessary for rural development, poor rural families. They are primarily paddysuch as credit, improved extension services, and and coconut farmers, who often intercrop orrural electrification are being, or will be pro- grow other minor crops in rotation, and whovided, under other Bank-assisted projects. relv largely on rainfed cultivation. Under the

The Rehabilitation and Development Project project, these farmers will be guided on the basisin the Lao People's Democratic Republic is the of research results. new technology, and farmfirst project assisted by the Bank in that country. management economics. Regulalr in-serviceAided by an IDA credit of $8.2 million and a training of field-level agricultural staff. progres-United Nations Development Programme tech- sive improvement and regLularization of extensionnical assistance grant of S 1.7 million, the project methodology, and the strengthening of extensionwill help increase rice and pork production in education and management are being empha-Vientiane province. It includes construction and sized. The number of field staff will be increascd,rehabilitation of irrigation and drainage schemes and in-ser-vice training for them will be expandedon some 8,300 hectares of permanent paddyland and regularized throughout the country. Thein the lowland areas of the province; rice inten- national average ratio of field-level agriculturalsification, based on improved seeds, distribution technicians to farm families is expected to im-of fertilizers and insecticides; introduction of prove from 1:1.300 to 1:800. Specialists willbetter cultivation techniques: pig multiplication, providc technical backstopping for the extensionbased on a regular supply of weaned piglets workers. The project also includcs the improve-for fattening; and credit for pig feed and other ment and expansion of seed production, proces-inputs. The project is also designed to strengthen sing, and marketing facilities. The effectivenessthe planning and implementation capabilities of of an ongoing farm subsidy program, whichgovernment agencies, and to provide experience aims to reduce farmers' risks connected with thethat can be transferred later to other provinces. introdLiction of new techniques and new cropsAn estimated 10,000 farm families, whose mainly by providing inputs suich as seeds, plant-incomes are considerably below poverty levels, ing materials, fertilizers, insecticiies. and pesti-are expected to benefit from the project. cides. will be reviewed.

Additional support for rural communities andsmall-scale village enterprises in Thailand will Population Growth Rates Reducedbe provided under the Accelerated Rural Elec-trification Project, for which the Bank loaned With rising incomes and broadening of educa-$25 million during the vear. Some 675.000 tion, particularly of women, the barriers to thehouseholds in about 4,500 villages, mostly in introduction of family planning are comingnortheast Thailand (one of the poorest regions down. Most countries are now implementingof the country), will be provided electric power. family planning programs. Korea and SingaporeMany of these villages serve as market and scrv- started such programs in the mii-I 960s; Indo-ice centers for surrounding areas. Electricity will nesia, Malaysia, the Philippines, and Thailandpermit farmers to perform their domestic tasks are doing so now with the assistance of the Bank.at night and free them to work longer hours on The averagc family size is everywhere reportedtheir farms during the peak planting and harvest- to be on the decline, and the number of acceptorsing seasons. Electric power made available by of birth control methods among women ofthe project will be used to run irrigation pumps childbearing age is increasing, having reachedand village industries. Electricity in the villages 25% and more in most countries. Even withwill also create more favorable conditions lower death rates. population growth rates arefor vocational and adult education programs. declining-approaching 2% in Indonesia. 2.5%The Bank loan will help finance distribution in Malaysia, the Philippines, and Thailand: inline accessories (transformers and substations), Korea, the population growth rate is 1.8%, andswitching equipment, meters, and wiring. The Singaporc has had a still lower rate for manyproject, which constitutes the first five-year years.


During fiscal 1978, the Bank helped finance enterprises through the existing state bankinga first Population Project in Thailand with an system, under the guidance of Bank Indonesia.IDA credit of $33.1 million. The accelerated A Small Enterprise Credit Project, assisted dur-national family program (first phase) in Thai- ing the year by a $40 million IDA credit, willland aims at redLIcing the rate of population provide technical and financial assistance to thegrowth from 2.5% to 2'].I% during the Fourth credit program in order to improve loan ap-Five-Year Economic and Social Development praisal and loan handling, and to reduce lendingPlan (covering fiscal years 1977-81 ). Under the costs. It is expected that, through this project,program, more than 3 million new acceptors of assistance to small enterprises in towns and ruralbirth control methods are expected to be re- areas can be strengthened, that labor-intensivecruited, and maternal and infant mortality rates technologies can be introdticed. and that addi-are cxpected to be reduced by 20%. The project tional employment-both full-tilmlC, off-farmwill extend the delivery of family planning serv- employment and supplemental employment toices and supplies to rural areas; increase the farmers-can be created at a low cost per job.supply of nurses, auxiliary midwives, and prac-tical nurse/midwives-key personnel in provid- Ports Modernizeding family planning services; and strengthenfamily planning evaluation and research, as well Availabilitv of adequate modern port facili-as information, education, and communication ties is important for this area of islands andactivities. The project will also improve the rural peninsulas. where a majority of the populationhealth delivery system in 20 relatively disad- lives near the sea. During fiscal l 978, the Bankvantaged provinces by raising the level of helped finance, with a S 13 million loan, addi-scrvices to national standards. The Australian tional berths and ancillary facilities for the portDevelopmiient Assistance Burcau, CIDA, the of Tawau in the Malaysian state of Sabah andGovernment of Norway, and the United States container handling facilities at Port MoresbyAgency for International Development arc par- (Papua New Guinea) with a loan of $3.5ticipating in the financing of the project. million.

Container traffic through Papua New Guineaports has been growing rapidly; all shipments

S;mall-scale Enterprise Assistance from Australia, which account for about half ofall overseas traffic, are now containerized. At

Industrial development is being emphasized present, containers are being handled mainlyby most countries within the Region, and the through Lae, which has adequate facilities fi-Bank is supporting these efforts through direct nanced under a 1973 IDA credit. The portloans or through lending extended by financial improvement project at Port Moresby includesintermediaries. In Indonesia, industrial invest- land reclamation, the building of a 125-meterment has, so far, been mainly for large, capital- berth, the extension of the present containerintensive projects, but the government now freight station, and improvements to the portrecognizes that the small-scale enterprise sector access road. A 30-meter coastal berth will behas an important role to play in providing built at Samarai, located on a small island offproductive employment at a low cost per the coast of southern Papua, and consultingworker. Small-scale enterprises range from some services will be provided for project design andrelatively modern firms in manufacturing, con- implementation, and for training the staff of thestrttction, and transport to large numbers of Papua New Guinea Harbours Board. The Ku-traditional artisans and small traders, with the wait Fund for Arab Economic Development islatter accounting for a major proportion of the participating in the financing of the project, withtotal number. Limited access to institutional a loan of $3.5 million.credit has been one of the major constraints to The improvements will permit Port Moresbythe growth and modernization of many small- to realize fully the greater efficiency of containerscale enterprises. In 1974, the Government of shipping. They will also reduce ship waiting andIndonesia initiated a credit program to provide turnaround time, and thus, significantly reduceinvestment and working capital to small-scale cargo handling costs.

South Asia

Trend in Lending, 1965-78Pet, capita (US5$ millions. Fiscal years.)

Borrowers, Population(') GNP 1976() (fiscal 1976-78 (000) (US$) (00) Number of Operations

Bangladesh 80.400 1 10 -Bunma 30,827 120India 620.440 150 -

Nepal 12.857 120 2,000

Pakistan 71.306 170 1,648 9Sri Lanka 1381i9 200 - 1648._____________________________________________________ ~~~~(36) -

NOTE: The 1976 estimates of GNP per capita presented above 1,0 0 1,349.2are fromn the 1977 World Bank, Atlas, published in January1978, and are identical to those shown in the World - 1,189.6 1,164.Developmsenit I'uricators, published in Jtone 1978. - (24) ( 11642

('> Estimates for mid-1976. - ( (32)(CO Arias tnetlrodology, 1974-76 base period. o-o _

5295 1 1* I-(16.6) * * -

50 2774 - ; i i i l

1965-69 1970-74 1975 1976 1977 1978Annual Averages

The common thread of developments in South manufactures, has hardly increased at all. In theAsia during fiscal 1978 has been the acceleration last three years, how-ever, economic growth hasof economic growth in much of the Region") generally been somewhat ahead of populationand the improvement in the availability of growth in the countries of the Region, with theresouLrces that has followed in its wake. Since exception of Pakistan and Nepal. In fiscal 1977,the Second World War, economic growth in the there was a slight pause in growth. but in fiscalRegion has been held back by lack of resources 1978, growth in gross domestic product (GDP)-foreign exchange, foodgrains, electricity, and for the subcontinent as a whole is likely to ap-essential raw materials. Although resolute devel- proach that of fiscal 1976, which, in turn, hadopment efforts have led to significant improve- been the year of highest growth during thements in the production structure and the present decade.quality of the labor force, economic growth hasbeen sluggish, in most years barely exceedingthe rate of population growth. For many of the Expansion of Irrigationinhabitants of this most populous Region of theworld, conditions have improved only slowly, Region's economy has been the state of bumperand some 300 million people have continued to crops of foodgrail in India, Banoladesh, andlive in extreme poverty and, as a result, arestill deprived of adequate food, clean water, andother basic necessities. Per capita consumption fis Membership in the Region increased by one during the

fiscal year when Maldives joined the Bank and IDA inof essential items, such as foodgrains and cotton January 1978.

56 The Year's A ctivities, by Region

Sri Lanka, a vigorous recovery of cotton pro- Workers' Remittancesduction and adequate grain crops in Pakistan,relatively high prices for traditional export The resource position of the Region wasproducts such as jute and tea, and continued also bolstered last year by favorable develop-growth of nontraditional exports. The bumper ments on external account. These developmentscrops were associated with favorable monsoon included an increase in export earnings of aboutweather over most of the subcontinent; Nepal 10%o, increased earnings from tourism in Sriand Burma missed out on the good weather, Lanka, India, and Nepal (in Nepal, tourism hashowever, and agricultural production in those become the country's largest foreign exchangecountries did not increase. Other factors also earner), and, most important, increased remit-played a role. Fertilizer consumption, which, in tances, particularly from workers who havesome countries, stopped growing when inter- migrated to the Middle East. In only a few years,national prices increased in 1973, is surging these remittances have become the single mostahead once more; so, too, is the use of improved important source of foreign exchange for Indiaseeds. Irrigated areas are expanding much and Pakistan, and their importance is rapidlyfaster, and significant steps have been taken rising for Bangladesh, as well. Judging by thetowards using, more efficiently. water on com- Pakistan and Indian experience, the skills ofpleted irrigation projects. These improvements the migrants are widely varied, and migrantsare associated with the concentrated efforts work as unskilled laborers as well as profession-throughout much of the Region to bring more als. Remittances, therefore, must be benefitingeffective extension services to farmers. households over most of the income distributioneffecive xtenion ervies t farers.scaleinldiahuhosattsowrn.

At this stage, however, it is not known pre- e, including households at its lower end.cisely how much of the increase in agricultural Meanwhile, some difficulties have occurred, inproduction can be credited to longer-lasting areas where many migrants have left, in con-improvements and how much has been due to struction and manufacturing and in the imple-the fortuitous succession of a few years of good mentation of development projects. Minimizingweather. Whatever the relative importance of the cost to the economies of the Region ofthese factors may be, however, the good harvests migration, while increasing the flow of migrants,have substantially strengthened the resource may require accelerated training in critical cate-position of the Region, India in particular, by gories of skills.reducing the need for imports of food and by At the same time, the migrants, who usuallyproviding opportunities for building up buffer leave their families behind (for they intend tostocks against possible future crop shortfalls. return to their home countries within a limited

Lending to Borrowers in South Asia, by Sectors(USS millions. Fiscal years.)

Aninual AnnualAverage Average1965-69 197(0-74 1975 1976 1977 1978

Agriculture and ruraldevelopment $ 36.9 $123.6 $ 400.1 $ 345.5 $ 451.0 $ 899.7

Education 2.6 4.0 - 12.0 15.0 5.7Energy - 3.8 60.0 - 1 50.0 -

IDFt) 36.8 49.6 134.5 65.0 29.0 120.0Industrv 12.4 35.2 233.0 105.0 71.0 -Nonproject 98.0 132.4 290.0 350.0 75.0 75.0Population and nutrition - 4.2 15.0 - - -Power 25.7 42.0 - 283.0 150.0 305.0Technical assistance 0.4 0.8 - 7.5 3.0 -

Telecommunications 20.8 40.0 57.0 - 80.0 134.5Tourism - 0.8 - - - -Transportation 43.4 73.5 - 114.6 70.0 22.0Urban development - 7.0 - - 49.0 87.0Water supply and sewerage 0.4 12.6 - 66.6 21.2 -

Total $277.4 $529.5 $1,189.6 $1,349.2 $1,164.2 $1,648.9

Of which: Bank $ 98.6 $ 68.9 $ 269.0 $ 260.0 $ 394.0 $ 330.0IDA $178.8 $460.6 $ 920.6 $1,089.2 $ 770.2 $1,318.9

IlIdLnstrial development and finance. Includes lending to development finance companies and small enterprises.

Souith Asia 57

ts~~~~~- ~~~ ~ ~

44..4~~~~~~~~~~~~~~

A 22,000-ton increase in Sri Lanka's production ofrice, oilier ( ereais, anlcd pulses will i-exsult from tflemodernization of five tanllk irrigation schemes intlhe northl-central dr-y zonle, serving some 13,000hectares. Thle 'roject, assisted by an IDA credit of$5 inillion, approved in fiscal 1976, and a granzt of$6 million fromn the Unzited Kingdom, is expectedto con tribute to an estimated annual savings of $4million in foreign exchange, increase employmentoppIortumnities in rulcral areas, andl raise fcarminc,omes.

time), should be given the benefit of special by Bangladesh, India, and Pakistan on importedschemes to help them put their savings to pro- fuel, and an improved basis for domestic pro-ductive use. (To some extent, such schemes duction of important petroleum-based products,exist already in India.) To be sure, remittances such as fertilizer. Production, in India, of ironallow recipient households to raise their stand- and steel increased further and, thanks to goodards of living: but also, remittances are fre- monsoons, so did the generation of hydropower.quently spent on housing or land, often at Of longer-lasting significance for the Region'sinflated prices. There is, therefore, a need for resource position is the already mentioned in-schemes that would help workers returning from crease in farmland under irrigation. In India,the Middle East invest their savings in produc- irrigation development has acquired greattive assets, such as small industrial undertakings momentum; according to recent estimates, itsor agricultural equipment. These, and other, pace has accelerated from less than half a millionissues related to migration are currently being hectares of newly irrigated land in the earlyinvestigated with Bank assistance in both Paki- 1970s to around 1.5 million hectares in fiscalstan and Bangladesh. 1978. In Nepal, irrigation development is pro-

Developments in other sectors during the past ceeding at about twice the level of five years ago.year have also led to the strengthening of the In Burma, where water development possibilitiesRegion's economic resources. Further progress are substantial, encouraging progress has beenin the exploitation of oil and natural gas re- made in the rehabilitation, flood protection,sources and in the exploration of new deposits drainage, and irrigation of large areas in thehas opened the prospect of reduced dependence Irrawaddy delta.


Several schemes, moreover, promise further and economic policies has started. It has alreadyprogress on a large scale in harnessing the resulted in important measures, such as liberal-Region's water resources. ization of import and investment controls,

-The Tarbela dam in Pakistan, the largest greater recognition of the role of exports andsuch project in thc world, is close to comple- rcduceld emphasis on import substitution, effortstion, although technical mishaps have required to improve the price structure of agriculturalfurther works to be undcrtaken. IDA and prodlucts, and importance being placed on ade-Canada provided supplemental funds during the quate commercial performance of state enter-year. A number of countries. including original priscs. At the same time, govcrnments arecontributors to thc Indus Basin and Tarbcla reappraising the role of public investment in theDevelopment Funds have indicated their will- economic development process. Throughout theingness to make further contributions, and con- Rcaion. this reappraisal is leading to a shifttributiolns are being sought from other sources a\way from an earlier emphaisis on heavy indus-as well. The facilities at Tarbela will increase trv and certain tvpes of infraIstructurC, in favorthe irrigation potential in Pakistan's part of the of agriculture. irrigation, rural development,Indus basin: in acidition. the dam will eventa- small-scale inidustry. education. and health. Theally supply one-third of the countrv's total clec- restructuring of public investmiiernt programs willtricity output. require time. however. because of the weight of

-The a-reement between India and Bangla- ongoillg programs and the dlifficLulties inherentdesh on the sharine,g of the Gances waters has in designing new typcs of projects.paved the wan for their planned utilization in The shift in the emphasis in putblic investmentboth couLtrics. corresponds to a new perception in the Region,

-In Sri l.anka. the newly elected govern- both of what is required to make an economymleat vowed to SPei up implCmentation of the crow. and of how the neecis of the poorest scg-largest water de velopment scheme on the islanld. ments of the population might be met. Concernith Mlahaueli Ganga devclopment program, with cquitv is of lone standine, ir most of South

The sum of these improvements in the avail- Asia. \, here cmployment crc.tio)n. income dis-ability' of rxsources-foreien exchan-c. grain tribultion. popular participation in the develop-stocks. irrigation potential. hbdropower. oil and mIealt p1ocess, and satisfaction of minimumn.atural gas, iroll and stccl-has brought the needs have all becn planniag objectives longRegion. india especiallk. to a better position to before they becamc the focus of worldwide cle-step up its dcvelopment efforts. India is nlow velopment debate. In spite of considerableless sujhect to the constraints of food and for- improvements in literacy, nutrition, and lifeeign exchan-c availability that have historically expectancy. the Region has not as yet been suc-hampered its development. improvements have cessful-with the notable exception of Sri LIankaalso occurred in other South Asian countries, -in creating a basis for sustained improvementsalthough not to the same extent: Nepal, a tradi- in the conditions of the broad masses of thetional exporter of cereals. has seen its surpluses population. In the past year. the search for adwindle rapidly during the past five years; and new strategy that emphasizes increases in pro-most countries in the Region. Bangladesh and ductivity of the mass of small farmers andPakistan in partiCular. continue to rely heavily craftsmen, and access by the poor to the basicon external assistance. Yet there now exists an education and health care needed for their eco-opportunity for mtch of the Region to under- nomic advancement has been intensified. Intake a larger development effort without undue addition to calling for new policies and institu-fears of crippling shortages of resources. tions, such a strategy requires innovative proj-

The response to this opportunity was some- ects that can raise the productivity of the poorwhat limitedl in the past year, though more re- and achieve a wide distribution of project bene-cently, there are clear indications of a step-tip fits. In the past years, the Bank has workedin capital formation in both the public and closely with the governments of the Region inprivate sectors. These facts point to the need for the design and implementation of such projects.supplementary action to remove institutional Many of these projects have been concernedbottlenecks, to simplify and rationalize proce- with the development of agriculture and irriga-dures further. and to bring about structural tion, but there have also been examples to chooseimprovements. from in the fields of urban improvement, water

suppIV and sewerage, and education.

Taking Up the ChallengePolicv decisions in several countries of the Bank and IDA Lending

Region during the past year demonstrate that In fiscal 1978, Bank and IDA lending to thethis challenge is being taken Up. In the wake of Region was $1,648.9 million, up S485 millionmajor political changes in several South Asian from fiscal 1977 amounts. The number of proj-countries, an intense scrutiny of existing social ects assisted rose to 36, or four more than in

Soutth Asia 59

fiscal 1977. As usual, given the resource con- -in Orissa, Rajasthan, and Bihar. These proj-straints of most of the countries of the Region. ects have come on the heels of similar projects,80%> of the total lendirng was on IDA terms. assisted in fiscal 1977, in Assam, West Bengal(Co-financers commnitted resources totaling S 44 and Madhya Pradcsh. as well as projects Inmillioni for five of the lBank-assisted and IDA- more limited areas. In Ban(gladesh. the govern-assisted projects. In fiscal 1977, co-fiianceis mcnt has dlecidcet. in principle, to orgainize itscomllmittcd St 176.8 million for sevcn projects. owen extension sCIr\ice on the hasis of thc T & \/

Attempts to increase the ability ol' farmers to svstentl in Pakl\istan. thc 1 & \V stce is the coredIaw thc tfll benctits of tcchnological ads ances of the Ilunjabh Extcnsion and Acgrictltiradl I)cs ci-have become a major thleimee inl IDA lcnrding for- opmeicit l'rojec t. assistcd h\ a S I 2.3 mill 1)on I )Aag1-icuIl1u,c in South Asia. Productivits is often credit: in Nepal. aIpplication of thc s\steml hasheld hacl h\ thca btC etwCen fiully testcd and raised farimers' vields by half in a sin gc \carpotentially operational technology and actuLal in parts of the Birga1lnj irr igaltion project. assistedlarm practices. To bridge this gap. several IDA- in fiscal 1977 by a $;9 millioni IDA credit: andlassisted projects in the Rcgion feature a new in Burma. the system is cing uised in the l'addy-system of agricultural extension, the "training land Developmenit 'roject, assisted in fiscal 1976and visit" (T&V) system. This system empha- by a $30 million IDA credit.sizes the intcnsive and precise instruction of Improved research and cxtension is not onlyfarmers at regular, brief intervals on agricultural henieficial to an increase in foodgrain produc-practices that they should undertake in seven tion. In Bangladesh. it is an essential clemicit into 14 da\s' timile. T-he main in-redicnts of this a project. assisted by a $21 millioni IDA credit,promlisin1g :ipproach to the problems of stagnat- to improvC tIC cu1ltivation of jutc. the COulntrV'Sin g aI,g'iclC]tral icldl are (lisciplined tr:iining, most inportailt Cxport product. Ahbot I millioil.organiza. tion. an1d super-Visiofl of the cxtcnsion most]v ver\ poor. tarm fainriilics nt and to henctitworkcrs: strict adhieriece to a fixed schedule of from yield incrcascs obtained throuigh thic proj-visits: and thc visc of modet farmers to help ect, whilc abovit t 0'., o them are cxpected tospread the word. The extension workers are benefit additionally ftrom higher jute prices, tofreed of the administrative chores usually thrvist be obtained as a result of a pilot marketingupon them, and receive adeqviate transportation scheme.and other resources to carry out their tasks.

Wherever the T & V system has been put into Dairy Developmentoperation, results have been gratifying. Mostfamilies in project areas soon start to follow one The National Dairy Development Project inor more of the recommended practices, and India is aimed at increasing vet another sourcetheir agricultural yields have often increased of rural income. Most rural families in the svib-dramatically within one or two seasons-with continent own a few head of cattle or bLiffalolittle or no increase in purchased inputs. There for draught purposes and milk production. Evenare limits, of course, to yield increases that can poor tenants and landless laborers often own atbe obtained without increases in purchased in- least one cow or buffalo from which they derivepuits, and, where appropriate, use of improved a meager cash income-if only they can findseeds. Application of fertilizer, water, pesticides. an outlet for the milk. With the objective ofand provision of credit is tied in with the con- increasina their incomes, small cattlc owncrstent of the instruction. To enable the extension began to establish dairy cooperatives after theservice to incorporate technical innovations Second World War, bvit these cooperatives weresmoothly into the content of the instruction, often dominated by middlemen. Abovit 3t) yearsclose contact with applied agricultural re- ago. the "Amul" cooperative, made vip of mostlysearch organizations is included in the projects. small milk producers in Kaira district, in GLija-Throvigh their initial emphasis on low-cost, rat. succeeded in breaking the milk marketinglabor-intensive methods, the projects have par- monopoly of a privatc milk company in Bombay,ticularly benefited small farmers who, typically, and provided a beginning to a cooperativehave little cash, but do have spare labor. The movement in which dairy facilities are ownedbenefits from the projects have enabled farmers and operated by the farmers themselves. Coop-to nourish their families better, to improve their eratives of this nature have now been establishedhousing, and permit their children to attend in 10% of India's districts; they own processingschool. Benefits are not limited to farm families, plants, transportation and marketing facilities,since more intensive cultivation methods coun- and provide advice and veterinary services toseled by the extension workers have led to in- their members. A guaranteed outlet for milk atcreased employment of landless workers on a fair price has greatly increased the family in-larger farms. comes of cooperative members.

In India, the T & V system is the backbone A $150 million IDA credit to the Indianof three statewide extension and research proj- Dairy Corporation aims at promoting the estab-ects, all assisted with IDA credits in fiscal 1978 lishment of dairy cooperatives on the Amul


model throughout India. The credit, which fol- guide in the design of future urban projects inlows three earlier ones (in Karnataka, Madhya the South Asia Region.Pradesh, and Rajasthan) for dairy development In Nepal, the shortage of trained technicalon a similar, but more limited scale, will provide manpower to implement development projectsfor dairy processing, distribution and transport has been an important factor preventing thefacilities, as well as training, research, and ani- government from achieving projected rates ofmal health services. Most beneficiaries of the growth in GDP. Today, there is no local capac-project will be subsistence or small farmers, ity in the country for training senior engineeringwhose average annual per capita farm income technicians. Almost all are trained abroad; the(above subsistence) of about $50 is less than estimated number of returning graduates throughhalf the national average. As a result of the 1980 represents less than half the projectedproject, the net incomes of some three and a half needs of the current plan period (1976-80).million families are expected to increase sub- Moreover, foreign training is not specificallystantially. Since dairy production is a labor- related to Nepalese conditions and problems,intensive activity, the project will also provide and foreign-trained technicians are generally re-additional employment opportunities to landless luctant to work outside the Kathmandu valley.and smaller farmers. The surplus revenues from A $5.7 million IDA credit is aimed at in-milk sales accruing to village dairy cooperative creasing the supply of needed junior and seniorsocieties have been used by the villagers to engineering technicians through increasing thebuild schools, water supply systems, and access capacity and quality of training at the mainroads. Dairying has also helped to enhance campus of the Institute of Engineering. Underthe status of women and to break down caste the project, graduates (primarily in civil andbarriers. electrical engineering) would meet about 50%

of the estimated requirements for junior tech-

Other Sectors Aided nicians in the current plan, and about 85% inthe Fifth (current) and Sixth plans combined.

Although South Asia is chiefly rural in char- Studies, providing a basis for future develop-acter, about 150 million of its inhabitants live ment of the education sector, will also be car-in cities, in many of which there are enormous ried out.problems of housing, sanitation, and employ- Small-scale and cottage industries (SCIs) inment. The approach to urban development in Bangladesh will be given a boost by a $7 millionSouth Asia is still evolving, and consultations IDA credit approved during the past year. Thebetween the Bank and the governments of the credit will aid the development of SCIs-whichRegion on urban lending are still in progress. provide work for about 80% of the country'sIn previous years, IDA has helped finance proj- total industrial labor force-by assisting a proj-ects in Bombay, Madras, and Calcutta aimed ect whose purposes are to introduce reforms inchiefly at improving water supply facilities and the institutional framework for aiding SCIs bytransportation in these agglomerations. In fiscal strengthening institutions, redefining their roles,1978, IDA helped finance, with an $87 million and initiating programs to tackle problems limit-credit, a project in Calcutta designed to provide ing SCI development; and to provide financea much wider range of urban improvements, for investments in new, expansion, balancing,including improvements to slum areas, primary and modernization projects, including perma-schools, health centers, water supply and sanita- nent working capital requirements, and for tech-tion facilities, roads, and footways-all concen- nical assistance. It is expected that as many astrated in slum areas. 200 small-scale, and up to 1,000 cottage indus-

Sites and services for small-scale industries tries will be aided by the project. Rough esti-will be set up, and market centers for consumers mates indicate that the project could result inconstructed. These measures are expected to incremental direct employment for about 8,000lead to overall improvements in the organization workers, and increased earnings for an addi-and design of basic urban services for many of tional 6,000 workers.the almost 10 million inhabitants of the Calcutta Included prominently among the beneficiariesagglomeration, and provide specific benefits to would be many of the country's 100,000 womentarget groups - including better schools and who are involved in handicraft production usingsocial and economic support for almost a million jute as the major raw material. Sales of handi-slum dwellers. Experience in the implementa- crafts made of jute are thought to have an imme-tion of this project will act as an important diate potential for expansion.

Europe, Middle East,and North Africa

Per caDita Trend in Lending, 1965-78Borrowers, Population(') GNP 1976(2) (USfiscal 1976-78 (000) (US$) 1US$ millions. Fiscal years.)

(00) Number of OperationsAfghanistan 14,000 160Algeria 16,235 990 -Cyprus 630 1,480 -

Egypt, Arab Republic of 38,086 280 20_00 =1,855.9 -Greece 9,128 2,590 ' -Ireland 3,164 2,560Jordan 2,792 610 1,570.1

1,434 2 1,485.6 (44Lebanon n.a. n.a. = 1 4434 2 1Morocco 17,197 540 (43) -Oman 796 2,680 -Portugal 9,732 1,690 =Romania 21,446 1,450 - -

Spain 35,701 2,920 811.6 m mSyrian Arab Republic 7,655 780 (32.4) *flTunisia 5,732 840 _Turkey 41,243 990Yemen Arab Republic 6,037 250 2 m m mYemen, People's Democratic _ 1240*

Republic of 1,723 280 - _1*4)Yugoslavia 21,520 1,680 - * -

NOTE: The 1976 estimates of GNP per capita presented above 1965-69 1970-74 1975 1976 1977 1978are from the 1977 World Bank Atlas, published in January Annual Averages1978 and are identical to those shown in the WorldDevelopment Indicators, published in June 1978.

(a) Estimates for mid-1976.(2) Atlas methodology, 1974-76 base period.

In none of the World Bank's six regional And, too, the Region's countries-rich anddepartments are the countries as disparate- poor, large and small-have all been adverselygeographically, culturally, and economically-as affected-in different ways, of course-by theare those that belong to the Europe, Middle slower-than-expected recovery in traditionalEast, and North Africa Region. growth rates of the developed, industrialized

However, diverse countries such as Portugal, countries.Yugoslavia, Egypt, the People's Democratic Particularly affected by this slow recoveryRepublic of Yemen, and Afghanistan, as well were the exports of labor and nonoil goods fromas other member borrowing countries of the the Region. Thus, in Turkey, for example, ex-Region have, in recent years, increasingly at- port earnings declined, compared with those oftempted to devise ways in which the basic needs 1976, and net emigration of labor was sharplyof their populations can be better fulfilled- reduced. In Portugal, a continuing balance ofthrough emphasizing the production of food, by payments deficit was due, in part, to the sluggishstrengthening programs of vocational education, growth of exports to European countries; a sig-and by developing schemes designed to alleviate nificant factor, also, was the high domestic de-urban poverty. The ways in which the countries mand for export goods. In some countries, suchof the Region have gone about these tasks are adverse developments were offset by the exportoutlined later in the chapter in the discussion of goods and labor to oil-producing coun-of projects assisted with Bank and IDA finance tries. Cyprus and Jordan, for example, benefitedduring the past fiscal year. substantially from exports of agricultural and


manufactured goods to Persian Gulf countries; new industries; an accelerated program of smallas a result, Jordan is planning to make major and medium-scale regional enterprises; and con-investments to increase agricultural output in tinued implementation of its Agrarian Revolu-the Jordan valley. Afghanistan, also, is well tion, which aims at providing full employment toplaced to serve these Gulf markets. A develop- landless agricultural laborers. On the other hand,ment strategy, led by agricultural exports, inin many oil-producing countries, particularly increasingly in processed form, has already begun the Gulf, acute labor shortagcs and rising coststo take shape in the country. To take advantage have led to a growing awareness of the need forof these opportunities, Afghanistan is develop- manpower planning. As parL of its program ofing institutions to assist small-scale agricultural technical assistance, the Bank has been helpingand industrial producers, both in improving the Saudi Arabian government conduct a majortheir products and in increasing their output. manpower planning study. Launched in 1974,In addition to income from exports, remittances the study is still continuing. Among its objectivesfrom emigrant labor working in oil-producing are the estimation of domestic demand for var-countries have been substantial in such coun- ious types and levels of manpower over thetries as the Arab Republic of Egypt, Jordan, decade; and development of analytical and insti-Yemen Arab Republic, the People's Democratic tutional capabilities within Saudi Arabia toRepublic of Yemen, Afghanistan, and Syria. initiate manpower planning, evaluate alterna-

Sluggish economic recovery in the industrial- tives, and evolve detailed policies and programsized world was also partially offset by continu- for meeting manpower needs.ing aid flows from the oil-producing countries In the field of energy, efforts continued inwhich provided significant amounts of aid, often many non-OPEC countries of the Rcgion toin the form of grants: to countries in the Region; reduce their dependence on imported oil throughEgypt, Jordan, Syria, and Yemen Arab Republic price increases to consumers and through at-were major recipients of these flows. tempts to step up oil exploration and develop

The slowing down of external migration from otner sources of energy. In Romania, for ex-North Africa to Europe has given added impetus ample, the government's earlier efforts to de-to the Maghreb countries to strengthen their velop indigenous sources of energy other thanefforts to increase domestic employment. In oil, particularly of lignite and low-grade coal,Algeria, for example, employment creation has were speeded up. Ways to encourage greaterbeen emphasized through large investments in efficiency in energy use are also being actively

Lending to Borrowers in Europe, Middle East, and North Africa, by Sectors(USS millions. Fiscal years.)

Annual AnnualAverage Average

1965-69(') 1970-740) 1975(') 1976(') 1977(l) 1978


Education 5.5 45.2 56.4 88.9 79.5 191.0Energy - 18.3 - 49.0 - -

IDF(2) 59.1 127.6 215.0 160.0 239.0 75.0Industry 25.3 71.6 152.3 188.0 171.8 247.0Nonproject - - 70.0 - 70.0 50.0Population and nutrition - 5.3 - - 4.8 -

Power 28.2 121.3 215.6 258.5 142.5 118.0Technical assistance - 0.6 - - 1.5 -

Telecommunications - 37.1 30.0 28.0 - 53.0Tourism - 11.9 - 27.0 26.0 -

Transportation 94.0 159.8 248.5 146.2 232.5 390.0Urban development - 12.5 - - - 32.0Water supply and sewerage 3.0 45.8 51.1 138.0 173.0 140.7

Total $240.0 $811.6 $1,434.2 $1,485.6 $1,570.1 $1,855.9

Of which: Bank $216.8 $722.0 $1,264.1 $1,341.9 $1,474.3 $1,660.5IDA $ 23.2 $ 89.6 $ 170.1 $ 143.7 $ 95.8 $ 195.4

I') Includes lending to Finland, Iceland, Iraq, Ireland, Israel, Italy, and Spain which are now considered past borrowers.() Industrial development and finance. Includes lending to development finance companies and small enterprises.

Europe, Middle East, and North Africa 63

pursued in the country. And in Tunisia, themeans by which its gas resources might be ex-ploited are being studied.

Bank and IDA Activities

In fiscal 1978, the Bank and IDA helpedfinance 44 projects for a total of $ 1,856 million,compared with 44 projects for $1,570 millionin the previous fiscal year.

Lending for industrial and agricultural de-velopment accounted for 17% and 30%, re-spectively, of the total for the Region. As inthe recent past, the Region remained one of themajor recipients (25/c ) of Bank lending to in- Amdustry and development finance companies.

Co-financing provided additional resourcesfor Bank-supported and IDA-supported proj-ects. Those additional resources and contribu-tions are expected to amount to $1,240 millionfor 20 projects in II countries.

Major sources of co-financing for projectswere: the Overseas Economic Cooperation Fundof Japan ($224 million), the US Agency for AMInternational Development ($74.7 million), the -

Saud Fund (at least $70 million), the Abu .iDhabi Ftind (at least $25 million), the Arab . I

Fund for Economic andl Social Development (at e3

least $ 14.5 million), and the OI]EC Special Fund(S10.25 million . A water supply and sewerage project in Sana'a,

mong the various means being employed to capital of the Yemen Arab Repuiblic, is being helpedreduce their foreign exchange deficits, the nonoil by a $10 million IDA credit, approv-ed in fiscaldeveloping countries in the Region are paying 1976. The city's residents wvill he provided vithincreasing attention to the development of agri- 18,000 water and about 8.700 sewage connzections,culture, not only to meet their domestic needs in addition to abont 50 public water taps. Theand to raise the living standards of the rural improvetneats will assist many urban poor andpoor. but also to increase exports. To assist help reduce the incidence of waterhorne diseases.countries in devising agricultural export strate-gies, the Bank has undertaken a series of studies-providing comprehensive analyses and fore-casts of market conditions-on likely exportmarkets in Europe for fruits and vegetables. The facilities, and tractor trailers, the project pro-need for such studies is great, for there are many vides for improvements in research and exten-countries-at different levels of development- sion services so as to increase production andinvolved in exporting these crops. The results improve varieties; assistance in organizing im-of these studies have already been helpful in proved marketing arrangements to take bettershaping future agricultural projects in several advantage of market opportunities; and im-countries. provements in the country's agricultural credit

system. The project's investments are to beRaising Agricultural Productivitylocated in two regions of high agricultural po-

tential, Crete and the Peloponnesus, and will beA $30 million Bank loan approved in fiscal executed over a period of five years.

1978 for a Vegetable Production and Marketing Another project designed to exploit the poten-Project in Greece supports an innovative effort tial of producing fruits and vegetables for exportin that country to take fuller advantage of its to neighboring countries - but this time, infavorable location and climate to export high- Afghanistan -was assisted during the year byvalue, out-of-season vegetables to European an $18 million IDA credit. By providing farm-markets. The project will help small farmers ers with incentives, such as improved cleaning,supply this lucrative market, and, if successful, packing, storage, and trucking facilities, grad-could increase incomes of participating farmers ing and export certification systems, marketingby an estimated 20%. Besides essential invest- assistance, and farm credits, cropping patternsments in greenhouses, packhouses, cold storage will be diversified. The project provides the first

64 The Year's Activities, hy Region

systematic attempt to encourage Afghan farm- order to establish a nucleus of breeding stockers to grow these crops and/or improve their from which to upgrade indigenous herds overquality. Two government-owned financial inter- the long term. The project also succeeded inmediaries-the Agricultural Development Bank establishing 150 modern dairy farms and pro-and the Export Promotion Bank-together with moting modern dairying techniques through thethree other recently established institutions-the provision of credit and technical assistance.Afghan Seed Corporation, the Afghan Raisin Due to a slow start-up and the impact of infla-Institute, and the Afghan Vegetable Export Cor- tion, however, their number fell short of the 250poration-are involved in the project, and IDA to 300 farms projected at the time of appraisal.funds will be used to help strengthen the institu- The cattle, imported from Western Europe,tions concerned. The average annual income of adapted well to Turkish conditions, and milkeach of the I million farm families benefiting production and calving rates exceeded ap-from the project-mainly through improved praisal expectations. Although the project hasraisin processing and marketing-is expected to not yet reached full development, 500 surplusincrease from S512 to $720. Holstein bulls are already being distributed

A $5.2 million IDA credit to the People's each year to local farmers for herd improve-Democratic Republic of Yemen will support a ment. In view of the progress made, a repeaterproject designed to increase agricultural pro- dairy project, a Third Livestock Project (aidedductivity and yields in Wadi Tuban, a district by a Bank loan of $21.5 million), was approvednear the capital city of Aden, through the pro- in 1976, and is now being implemented. It aimsvision of improved inputs, agricultural equip- at consolidating the gains made under the firstment, extension services, and technical assist- project and at extending benefits to new areasance and training. The main crops involved in western and central Turkey. The project alsoinclude cotton, sorghum, maize, sesame, melons, includes a pilot scheme to assist 300 small live-and tomatoes. If, as expected, the annual gross stock producers living in villages.value of agricultural production increases byover 100%, the country could save about $1.2 Improving Urban Conditionsmillion in foreign exchange, and public revenuefrom the project area would increase substan- The problems of the cities and the urbantially. Each of about 7,000 cooperative farm poor, have, in recent vears, become a focus offamilies (some 36,000 people), most of whom increasing concern to many of the Region'snow live well below the poverty level (estimated countries. In Morocco, growing demand forat $75 per capita in 1976), is expected to have housing, particularly for poor people, has out-its average annual income augmented by about stripped the supply of public housing, and the63% when the project is fully developed. The government has increasingly focused on theproject would also improve the living condi- need to upgrade housing in squatter settlementstions of rural inhabitants through the con- and slum areas. The first World Bank-assistedstruction of potable water supply systems serv- urban development project in Morocco formsing 6,000 people living in six villages that still part of the government's program to upgrade alack proper water supplies. About 22 kilometers total of 500,000 dwelling units during the newof feeder roads will link nine villages to the Development Plan period, 1978-82. The proj-main road, thereby improving communications ect, aided by a Bank loan of $18 million, aimsand access to health and other facilities. A novel at improving the living conditions and produc-feature of the project includes a survey, by tive capacities of about 60,000 people living inearth satellite, of selected parts of the country, squatter settlements in Rabat. It provides forto identify areas of groundwater and agricul- the upgrading, through self-help efforts, oftural potential. Such a survey has never before squatter housing, development of a 12-hectarebeen undertaken in the country. And, since experimental sites and services scheme, exten-water is such a scarce and valuable resource, sion of basic social infrastructure, and essentialthe project also provides for a study for the urban services at costs that are affordable byevaluation, management, and use of the water beneficiaries. Efforts are also being made toresources in Wadi Tuban. initiate improved training in skills, expand com-

A First Livestock Project was successfully mercial installations, and develop local employ-completed in Turkey in early 1978. The project, ment opportunities. Through these efforts, it isassisted by a $4.5 million IDA credit, was ap- expected that the incomes of the urban poorproved in 1971, and represented a first major might be raised by creating about 2,500 neweffort by the Turkish government to modernize jobs in the project area.the dairy industry. More than 3,000 pedigree In Algeria, the existing urban water supplyHolstein cattle were imported for use on private and sewerage systems are insufficient to meetfarms in western Turkey near the four main the needs of a rapidly growing urban popula-milk-consuming centers of Ankara, Istanbul, tion that now accounts for 42% of the country'sIzmir, and Adana. The cattle were imported in total population. The population of Algiers, at

Europe, Middle East, and North Africa 65

1.7 million, has more than tripled since 1962, quality and relevance of education through im-and the city's infrastructure, including facilities proved teacher-training facilities, and orientingfor water supply and sewerage, has not been curricula toward the practicalities of everydayable to keep pace. Wastewaters from Greater life. The project will help reduce technical man-Algiers are discharged without treatment into power shortages, and will introduce new voca-Algiers Bay and the El Harrach River, and tional specializations required for the develop-waterborne diseases are endemic. A first Bank- ment of Syrian industry and infrastructure.assisted sewerage project in Algeria will help Consistent with the government's regional pol-the government achieve its priority objective of icy, most of the project facilities will be locatedreducing water pollution and its associated away from the main urban centers of Damascushealth hazards. A reduction in water pollution and Aleppo. Moreover, by providing that atwould help in three ways. First, it would permit least half the trainee places are to be filled byredevelopment of the affected areas and make women, the project would ensure the availabil-it possible to put to use land presently vacant ity of women teachers for primary schools, andbecause of pollution, thereby helping to relieve thus, given the social and cultural setting, helppopulation congestion in the inner city. Second, foster a greater attendance in school of femalethe proposed project, aided by an $82 million pupils. Finally, the project takes steps to meetBank loan, calls for the reuse of treated sewage. immediately a shortage of craftsmen throughReuse would result in a substantial increase in the establishment of adult vocational trainingthe water resources of Greater Algiers, thereby centers and the expansion of the country's tech-reducing the need for investments in water sup- nical secondary schooling svstem. These centersply. Third, by treating the wastewater, the El represent an initiative to improve the skills, and,Harrach River and Algiers Bay would recover thereby, the productivity and incomes, primar-their natural ecological environment, and the ily of the lowest-income and least-skilled ele-discharge into the Mediterranean Sea of matter ments of the Syrian labor force.that would cause the seawater to become oxygendeficient would be prevented.

In Portugal, the Bank provided a $40 million Industry and Transportationloan during the year to help finance a water On March 4, 1977, Romania suffered a severesupply project in the urban and rural munici- earthquake that covered approximately 10,000palities of the Lisbon region, where 30% of the square kilometers of the eastern part of thecountry's population lives. The project, which is country. A Bank loan of $60 million will helpthe main item in a regional five-year investment in the highly effective rehabilitation and recon-plan, will help meet the basic needs for water of struction efforts that were organized immedi-an estimated 300,000 poor people in Lisbon and ately after the quake. The loan's proceeds willadjacent rural areas by increasing the avail- finance the foreign exchange costs of direct im-ability of water and by extending the distribution ports for industrial enterprises damaged in thenetwork to new areas. These improvements will earthquake, and will help accelerate expansionreduce the risk of a cholera outbreak such as of capacity for the production of constructionoccurred in 1974/75, as well as the incidence materials, machinery, and plant for construc-of other waterborne diseases. The project will tion-related industries, as well as for reconstruc-also assist the government in building up and tion of the computer center serving the Ministrystrengthening major institutions responsible for of Transport and Telecommunications that col-water supply and sewerage in Lisbon and the lapsed completely in the earthquake. A portionother main urbanized areas of the country, of the loan will be used to develop a NationalOporto and the Algarve. Through the construe- Center for Earthquake Engineering as part oftion involved in the project, an estimated 22,000 the National Earthquake Protection Plan.man-years of employment will be created, thus In Egypt, part of a third Bank loan, for $40partially alleviating an unemployment problem million, to the Development Industrial Bankin the Greater Lisbon area. (DIB) will focus on the development of small-

scale industries. While the industrial sector in

Lending for Social Improvement Egypt has traditionally been dominated by thepublic sector, consisting of some 200 mostly

Two significant obstacles to long-run eco- large companies, the private sector has beennomic and social progress in Syria are the growing, with textiles, food products, leather,shortage of technical manpower and the ab- woodworking, and engineering leading the way.sence of effective administrative institutions. A Although there is, as yet, no official policy on$20 million Bank loan will help finance an edu- small-scale industries, the government, in thecation project that addresses itself directly to context of its new economic policy, is encourag-these macroeconomic issues. In addition, the ing private initiative, and appreciates the poten-project attempts to focus on two high-priority tial for small-scale industrial development. Partareas in the education sector: increasing the of the proceeds of the Bank loan-supplemented


by co-financing in the amount of $8.75 million To help finance Egypt's program for the ex-by the OPEC Special Fund-will be used to pansion of the Suez Canal, the Bank approvedfinance the development of about 350 small- a $100 million loan during the year to the Suezscale industries. (The average subloan size is Canal Authority (SCA), as part of a $1,003expected to be between S15,000 and $60,000.) million project to improve the Canal's facilitiesIn addition, the project includes a pilot pro- by 1980. Countries or agencies participating ingram designed to provide small-scale industries, the project include the Arab Fund for Economicincluding the artisanal sector, with technical and Social Development, the Islamic Devel-assistance. Through the technical assistance, the opment Bank, the Abu Dhabi Fund for ArabBank will finance, through institutions other Economic Development, the Saudi Fund forthan the DIB, a program of technical extension Development, the Kuwait Fund for Arab Eco-services, skill upgrading, and industrial manage- nomic Development, the Japanese government,ment development for small-scale industries. the US Agency for International Development,

The project's objectives are to raise the pro- and other bilateral donors.ductivity of enterprises by improving manufac- The Canal will be deepened and widened toturing processes and by providing assistance to accommodate more and larger ships, drawingsolve problems in areas of production engineer- up to 16.1 meters (53 feet), and other comple-ing and management; to increase the availability mentary improvements will be made. Technicalof skills by accelerated training and the upgrad- assistance will also be provided to help withing of skills; and to remedy deficiencies in com- final project engineering, project execution, andmercial management. Promotion of small-scale planning the operations of the Canal.industries can also be expected to provide greater The Suez Canal is Egypt's second largest for-scope for entrepreneurial development, encour- eign exchange earner, after cotton, and the sub-agement of initiative, redistribution of income, stantial increases in Canal revenues resultingand the stimulation of savings and investment. from the project could influence greatly theDuring the development of the project, the DIB, outcome of the country's overall developmentconvinced of the merits of promoting small in- plans. The project will also have a significantdustries, set a target of 20% to 25% of its total international impact, by providing shorter ship-lending to be directed to small-scale and urban ping routes for larger ships, thereby reducingpoverty-oriented projects. operating costs.

Latin Americaand the Caribbean

Per capitaBorrowers, Population(') GNP 1976(2)fiscal 1976-78 (O00) (US$) Trend in Lending, 1965-78Argentina 25,719 1,550 (US$ millions. Fiscal years.)Bahamas 211 3,310 (00) Number of OperationsBolivia 5,794 390Brazil 109,960 1,140 2,110.1 -Chile 10,453 1,050 - (49) -Colombia 24,226 630 2,000 1,893.2 -Costa Rica 2,013 1,040 (48)Dominican Republic 4,835 780Ecuador 7,316 640 =El Salvador 4,129 490 1,448.4Guatemala 6,478 630 i,500 (42)Guyana 783 540 1,215.0Haiti 4,674 200 =Honduras 2,977 390 1711 IJamaica 2,078 1,070 7966 m m mMexico 62,025 1,090 - (28.8) * *Nicaragua 2,335 750 _ * * *lPanama 1,718 1,310 - 351.0 I Paraguay 2,625 640 - (181Peru 15,833 800 *18- 4 Trinidad and Tobago 1,093 2,240Uruguay 2,800 1,390 -

NOTE: The 1976 estimates of GNP per capita presented above 1965-69 1970 74 1975 1976 1977 1978are from the 1977 World Bank Atlas, published in January Annual Averages1978. and are identical to those shown in the WorldDevelopment Indicators, published in June 1978.

(A) Estimates for mid-1976.i') Atlas methodology, 1974-76 base period.

The countries of the Region continue to find where inflation has been virulent in recent years,that the accomplishment of their longer-term as in Argentina and Chile. As a rule, carefuleconomic and social development goals is com- demand management and realistic exchange rateplicated by the adverse trends experienced in policies were instrumental in arresting the ac-the world economy in recent years. In these cir- celeration of inflation and the relative size of thecumstances, shorter-term financial and economic current account deficit. There werc some con-management has been particularly difficult. spicuous exceptions, however, and a few coun-

In this context, calendar year 1977 can be re- tries continued to face serious difficulties.garded as a year in which notable improvements The growth of economic activity in the Re-were recorded in the internal financial and eco- gion as a whole during 1977 was 4.3%, slightlynomic management of several countries. Ramp- below the near 5% rate of growth achievedant inflation was substantially reduced in a during 1976. This modest rate of increase innumber of countries, and significant progress real gross domestic product (GDP) could, inwas made in containing balance of paymcnts large measure, be attributedl to a weaker-than-deficits. Although the rate of growth of eco- expected growth of world demand and outputnomic activity was somewhat disappointing for and restrictive policies adopted by a number ofthe Region as a whole, the year was one of strong countries in order to slow down inflation andgrowth for several countries. reduce external imbalances. Brazil and Mexico

Though inflation rates remained high in most are important examples as, in both cases, pri-countries, the average annual increase in prices ority was given to reducing inflation and to im-came down drastically during 1977, particularly proving current account deficits. In Brazil, GDP


increased by only 4.7%, while Mexico's inof the Region, Brazil and Mexico, which helpedcreased by less than 2%-in contrast with an to dampen the average rate of growth of totalaverage annual rate of growth of 10.7% and imports; and favorable prices for coffee and5.1% for both countries, respectively, for the some other commodity exports. The pace andprevious six years. Real output for the other degree of improvement in the current accountnonoil-exporting, developing countries in the balances of Argentina, Brazil, and Mexico wereRegion rose by about 4.2%, indicating that a exceptionally strong during 1977. The improve-substantial recovery from the preceding two ment resulted in a decline in net borrowing byyears of recession and stagnation has taken place the public sector from private commercialin many of these countries. Important increases sources. Total net capital inflows exceeded thein output were registered in Argentina, Chile, current account deficit, permitting the Region'sColombia, Costa Rica, Honduras, and Para- level of international reserves to increase byguay. In contrast, Peru, Jamaica, and Guyana about $5,100 million.continued to confront serious adjustment prob- In spite of the year's achievements, the eco-lems made more difficult by weak prices of some nomic policymakers of the Region's countriesof their principal exports. In these countries, real are still facing the same problems and challengesoutput declined, unemployment continued to that have confronted them since 1974: how torise, and an upward drift in inflation persisted. reconcile balance of payment and price stabilityIn contrast. the economies of the principal oil- with both near-term output and employment ob-exporting countries of the Region contintied to jectives and the implementation of developmentexpand rapidly; output of Venezuela and Ecua- policies that are essential for longer-term eco-dor rose by about 7.5% in real terms. nomic growth.

For the nonoil developing countries of the After the developments that have taken placeRegion generally, financing the aggregate cur- in the area over the past four years are assessed,rent account deficit presented no problem in and the difficulties that the countries have faced1977. Improvement in current account was ac- are taken into account, the bottom line of thecompanied by rising international reserves. This balance sheet shows good results. Some countriesmajor improvement, for the second consecutive have chosen to follow different routes at differ-year, was the result of the successful implemen- ent times, but the predominant and general re-tation of stabilization policies, including flexible sponses have been appropriate; on the whole,exchange rate policies; the restricted increase in the countries in the Region continue to lay downeconomic activity in the two major economies solid foundations for their further development.

Lending to Borrowers in Latin America and the Caribbean, by Sectors(USS millions. Fiscal years.)

Annual AnnualAverage Average1965-69 1970-74 1975 1976 1977 1978


Education 11.1 25.9 47.5 35.0 59.0 33.7IDF(1) 12.5 39.2 10.5 280.0 198.0 277.(Industry 4.4 67.4 145.0 183.0 241.0 85.0Nonproject - 12.0 - 4.0 26.5 30.0Population and nutrition - 1.0 - 25.8 5.0 25.0Power 180.6 213.8 76.0 218.0 351.0 398.0Technical assistance - 2.7 - - - 11.0Telecommunications 12.8 28.2 41.0 - 60.0 33.6Tourism - 4.4 21.0 - 42.0 50.0Transportation 59.3 198.1 401.5 404.5 329.5 199.0Urban development - 8.1 8.5 21.6 12.7 162.8Water supply and sewerage 8.1 62.1 42.0 52.0 61.5 149.5

Total $351.0 S796.6 $1,215.0 $1,448.4 S1,893.2 $2,110.1

Of which: Bank $340.7 $768.8 $1,166.5 $1,408.9 $1,868.2 $2,054.5IDA $ 10.3 $ 27.8 $ 48.5 $ 39.5 $ 25.0 $ 55.6

() Industrial devetopment and finance. Includes lending to development finance companies and small enterprises.

Latin Amnzerica and the Caribbean 69

Liberalization of Trade

At a time when the Region has been facing .serious external and internal imbalances and ata time when the more industrialized countries of i _ -

the world are seriously and openlv considering areturn to some forms of protectionism, a num- ,

ber of countries in the Latin America and theCaribbean arca have substantially liberalized L.w- .their trade policies. Since 1974, Argentina, Chile,Colombia, and Uruguay have implemented tradeliberalization programs that have resulted insubstantial reductions in across-the-board tarifflevels. Equally important programs for the re-duction of quantitative import restrictions havealso been implemented. Moreover, most of thecountries of the area have maintained, and areoperating on, a flexible exchange rate system .1Although there have been, and are, some excep-tions, exchange rate movements since 1974 showthat the countries have responded fairlv well toprice movements and current account develop-ments.

Apart from the improvements in resourceallocation and the favorable impact these im-provements have on the long-term growth poten-tial of the Region, the implementation of thesepolicies has permitted a sustained expansion of ' .

export earnings, including those of manufac- - .

tured products.The recent marked improvements in the A conmpiehensive integrated rural development

Region's external balances, the modest rise in program in Mexico is szpported by tvo WorldBantk loans totaling $230 million. In 50economic activity (against a backdrop of slug- microregions, ranging from arid to Ihumid tropical

gish economic performance by the industrialized zones, with over 2 million inhabitants, irrigationcountries), the progress in reducing inflation, systems, feeder roads, markets, and water supplyand the continuation of realistic trade and ex- systems will be constructed, rural health centerschange rate policies constitute a considerable ancd classrooms renovated or bzuilt, self-help projectseconomic achievement. However, to do so, the encouri-aged, and financing to promote ruralnonoil developing countries of the Region have industries and create ofj-farm employment in smallbeen obliged to apply restrictive domestic poli- towns will be provided.cies that have limited the growth of consumptionand, in some cases, employment and investmentlevels, as well. The fact that most of the Region'scountries are giving increasing attention to im-proving the distribution of the benefits of growthhas made the imposition of restrictive policies Bank and IDA Lendingparticularly painful. Bank and IDA lending to countries of the Re-

The fact that the Latin America and the gion totaled $2,1 10.1 million, up from $1,893.2Caribbean Region has demonstrated an increas- million in fiscal 1977. Of the total, $55.6 millioning ability to increment and diversify its ex- was lent on IDA terms. Co-financers committedports and that its access to medium-term and resources totaling $773 million for 15 of thelong-term capital continues to expand is of Bank-assisted and IDA-assisted projects. Insignificance not only to the Region, but to the fiscal 1977, co-financers committed $621.3 mil-developed world. The resulting higher levels of lion for 12 projects. As in fiscal 1977, lendinginvestments and economic activity in the Region for agricultural development led the way, bothcreate a multiplier effect on world trade and out- in amount ($655.5 million, or 31 % of the total)put-via the impact of the Region's increasing and by number (12 operations, or 24%).imports-that is not insignificant. The relative Agricultural lending assisted projects aimedimportance of the many semi-industrialized, at sugar factory rehabilitation (Jamaica), provi-middle-income economies in the Region suggests sion of credit (Argentina and Mexico), increas-that the potential for further expansion of trade ing acreage under irrigation (Guyana), livestockand capital flows is great. production (Mexico), construction of grain


storage facilities (Argentina), building up insti- in urban areas to develop industry, transporta-tutional capacity through an agricultural exten- tion, power, water supply, sanitation and, moresion project (Brazil), and production of alpaca/ recently, health and education. During the lastvicuna/llama wool (Bolivia). In addition, rural several years, however, increasing attention hasdevelopment projects were approved in Brazil been focused on ways to deliver the benefits ofand Honduras. But the major development in such projects more directly to the poor. Onefiscal 1978 was the increase in lending for promising approach has been through "basicprojects designed to meet the Region's urban urbanization" projects that assist low-incomeproblems. families to build their own homes and improve

their own communities through self-help efforts.Urban Problems These projects are comprehensive, and typically

The Region is unique among developing areas include improvements to existing slums andiTherm oft lum a nevelston areah development of new plots provided with basicin terms of the levels of urbanization reached, inrsr. er an COMiivfclte.Fm

the size of its largest cities, and the rates of urban ifrastructure and community faclities. Fai-growth. Sixty percent of the population of Latin iies are offered loans for house construction orAmerica is already urban, and the proportion is improvement. Efforts are also made to expandexpected to grow to three-quarters within the job opprtanities.

next 20 years. ~~~~~This approach was pioneered in Latin Amer-next 20 vears. ica. Peru's "pueblos jovenes" slum improvement

Natural growth alone accounts for most ofthe urban explosion. Mexico Citv, for example, program and the 70,000 serviced sits under-

taken by Chile in the late 1960s were amongalready the third largest city in the world, with the first large-scale projects of this type in thea population of II million, is expected to grow world Bankfns-learlt liiste i rtito 21 million by the torn of the centurv-even to the needs-are now helping to introduCeif the urban influx could somehow be immedi- si e throg he Region.

ately stopped. ~~~~~~similar efforts throLughout the Re-ion.Such s nprecedented .rban growth, coupled In its basic urbanization projects, the BankSuchunprccdntedurbn grwth couled has encoLuraged low, affordable standards and

with limited financial and institutional capacity max rmdarat the muLnicipal, provincial, and central govern- cost recoverv, so that the approachment levels, has led to serious shortfalls of basic can be replicated on a largc scale. Services andmen leels ha le toserousshotfals f bsic dwellings are dcsigned for Iprogressive improve-services, shelter, and full-time emplovment- ment o re Onerage, therserve sitesespecially among the poor. Despite sig nificant mentover time. On era-c the serviced sites

decveloped uinder Bank-assisted projects cost lessinvestments in the expansion of water supply thin half the amount a hOusehold at the povertyand sewera-e facilities in the major cities of threshold can amornt Prous at des poverty

r A 1 ~~~~~~~~~~threshold can afford. Projects are designed soLatin America during the last 20 years, aboutone-fourth of those livin- in those cities still have that over three-quarters of the costs can beno direct water supply: almost two-thirds have recovered from beneficiaries.

The Bank has been "learning bv doing."no sewerage facilities. As for shelter, Llrban. -

n sewerage facilities. A forshelteInnovation has been a prime goal of its involve-growth has outstripped the supply of planned ment in basic urbanization, and the design of itshousing fivefold throughout Latin America. . - .L

distribution is typicallv skewed, and most recent projects has been improved inIncome severalonistviclways.d,anhas become even more so in some cities in re- several ways.cent years. Nearly 50 million Lirban dwellers in First, job generationi has received increasingLaint Amearic live below the uirban povelerty m emphasis. and now accounts for about 10% ofLatin Arnericat live below thC Lurban povertv total investmenit. Second. r-ecent projects havethreshold. defined as houscholdl income either so increasinely emcphaSied rcctprov cmtravlow as to preclu_de adequate nutrition, or less . Tiphasized iniroved administra-

tion and greate r community participation. Third,than a third of the national average. Urban on- lemployment and Linderemplosment are bh(h. Sln upgrading is being expanded, since it offers

and widesrc.l lowprodctisiv an earhles the most effc tive means of delivering servicesand wde spmrcad leriow productl item andsearnin to the largest nLimber of existing urban poor. Attre even MOre SCrioLS problems. the same time, there has been no reduction in

Many of the poor are forced to live in Liii- the pace of serviced site development.planned settlements, often located in peripheral Shmificant ,rowth occurrcd in Bank lendin-aireas where travel time to and from work each S t o

for hasic urbanization projccts Ciurlgll fiscalday max exceed three to four hours. The.prey- 1978. Since 1973, nine such projects have heen

alence of disease in such settlements is some-A . . , . ., a~~'pprovcd, involvinttlg rJctcss fS2times as much as 50c higher than the citvwide m Pb aries number ore

averag'e. Such conditionls further erode the than a million people. The three projects ap-productivity of the poor and can lead to a proved in fiscal 1978-in Bolivia, Colombia, andself-perpetuating cycle of poverty. Mexico-involved $58 million in Bank lending,

and accounted for over a third of total invest-Benefits to the Poor ment and over half the expected I million bene-

The Bank has long been involved in projects ficiaries.

Latin A meri(a and the Caribheain 71

Other Urban Sectors Aided The strengthening of national vocational train-ing svstems (with some reorientation to deal

Another new area of emphasis has heen urban more effectively with the educational and train-transport. T'he Bank's first two projects in the imn needs of the target populationl n theReglon in this sector weIC approved in fiscal Iinformal sector) and a grcater emphasis on1978, and involvedl $ 1( 4 million in loans. These the basieducational needs ol out-of-schoolprojects, in Costa Rica and Brazil. are desianed the andUadolescens in oor sbn ora-. childi-en and adolesceiits in pooF Urbaln areasto improve traffic management and Public will be continued throughout the Region in thetransport, to derive maximum benefit from next few vears.existing infrastructure. and to provide affordabletransport to move people to and from work.

Complementing these more direct efforts at Urban Water Supplyalleviating poverty, the Bank has also been re-orientintg its tracditionial lending f'or industry, During tile eight-year period, fiscal 1971-7S,water supply. and education in urban areas so the Bank has provided assistaLice amnounting toas to achieve a better balance in distributing almost $600 million for water supply and sewer-benefits. age facilities in the Regtion-most of them in

A major effort has been Linder- way during the uL-ban areas. These projects are eNpected to bene-last three vears to studv the special problems of fit about 8 million ul-ban poor. The Bank planssmall-scale enterprises and of labor-intensive to play an even more significant role in assistingactivities. Appropriate credit and technical as- its Latin Americani and Caribbean membersistance institutions serving small and medium- countries to meet the goals they have set f'orsizedl industrial enterprises have been identifiedl, themselves for the nxct ifew vears-to provideand projects that promise to have a significant water, through hotise connections, to 8X)% ofimpact in creating employment for the ttrban the urban population, and sewerage i'acilities topoor have been developed. The first Bank loan 70%o of urban dwellers hy 1990). The Bank'sdevoted exclusively to small-scale enterprise lending strateg- in the sector is designed to helpfinancing in the Region was made to Colombia's meet the needs f'or water and scvwcrage facilitiesCorporaci6n Financiera Popular in fiscal 1975. of the poorest groups in l atin America's citiesThe results were so encouraging that a second by including, in its urban water projects, theloan to the same institution was approvedin fiscal extension of distribution networks to marginal1977. Intensive efforts to develop an appropriate areas. Bank-assisted projects also aim at encour-small enterprise credit and technical assistance aging the establishment, or strengthening, ofprogram in Mexico resulted in a $47 million tariff policies and struetures that result in theloan in fiscal 1978. This comprehensive project cross-subsidization of the cost of water to thecomprises a credit and loan guarantee program urban poor. Design criteria have also been de-for small and medium-scale industrial enter- veloped and applied so that the urban poor canprises, to be carried out through commercial pay for the services. All these measures arebanks and other financial intermediaries; rein- being carried out within the context of financiallyforcement of a program to provide risk capital self-sustaining operations. Such operations areto such enterprises; a program to lease plant indispensable if reasonable progress in meetingbuildings and equipment to small and medium- rapidly growing demands-without creatingsized firms; and the creation of a force of unsustainable burdens on government budLgets-industrial development extension agents to serve is to be assured. The third Managua water sup-the sector. ply project, for which a $1 (). I million Bank loan

Lending in the education sector has also been was approved in fiscal 1 978, reflects the applica-adapted to meet the needs of the urban poor. tion of the Bank's urban strategy in the sector.Emphasis in regional lending in recent years has Safe water will be provided to 95% of the city'sshifted towards the support of nonformal voca- population (465,000 people in 1975) and thetional education designed to meet the most number oi' poor served by house connections willcommon educational needs of the adult urban be increased by 1 30,000.poor by providing skill training so as to enhance Also in line with this strategy, a $6.6 millionthe employability of the unemployed and the IDA credit was approved during the year for aproductivity of those already employed. In fiscal Provincial Towns Water Supply Project in Haiti.1978, vocational training projects, devoted The project will provide potable water to aboutmainly to upgrading industrial skills, were as- 155.000 people by 1982, incIlding 70,t)00 verysisted in El Salvador and Uruguay with Bank poor people who wilt be served through publicloans of $9 million and $9.7 million, respectively. standpipes.

Projects Approved for Bank and IDAAssistance in Fiscal 1978, by Sector

AFGHANISTAN: IDA-S 18 million. MoreAcronyms Used in This Section than 1 million farm families are to benefit from

ADAB-Australian Development a fruit and vegetable export project which aimsAssistance Bureau to expand market access for horticultural ex-

ADF-African Development Fund ports (raisins, vegetable seeds, potatoes, onions,BADEA-Arab Bank for Economic and fresh fruit) through the provision of clean-

Development in Africa ing, packing, and trucking equipment; gradingCABEI-Central American Bank for and export certification systems; marketing as-

Economic Integration sistance; and on-farm credit. Technical assist-CCCE-Caisse Centrale de Cooperation ance is included. Total cost: $27.6 million.

Economique ARGENTINA: Bank-$105 million. TwentyCDC-Commonwealth Development grain silos, with an average capacity of 100,000

Corporation metric tons, will be constructed, railway im-CIDA-Canadian International provements, including minor works at port re-

Development Agency ception facilities and alterations to 2,000 boxcarsEDF-European Development Fund for effective grain transport made, and deepen-EEC-European Economic Community ing of port access channels studied, so that grainEIB-European Investment Bank spoilage might be prevented, production stimu-FAC-Fonds d'Aide et de Cooperation lated, and exports increased. Technical assistanceFIV-Venezuelan Investment Fund is included. Total cost: $280 million.IDB-Inter-American Development ARGENTINA: Bank-$60 million. Medium-

Bank and long-term agricultural credit as well as tech-IFAD-International Fund for nical assistance will be provided to some 4,500

Agricultural Development farmers and cooperatives so that productivityILCA-International Livestock Center on farms in the Pampas and Mesopotamic re-

for Africa gions might be increased and cropping and pas-KfW-Kreditanstaltfiir Wiederaufbau ture areas expanded. Total cost: $161.7 million.ODM-Overseas Development Ministry BANGLADESH: IDA-$25 million. AboutOPEC-Organization of Petroleum- 19,000 tons of foodgrains, valued at about $6

Exporting Countries million, are expected to be saved annually underUNCDF-United Nations Capital a second foodgrain storage project that includes

Development Fund the financing of storage facilities, weighing andUNDP-United Nations Development testing equipment, vehicles, mechanical drying

Programme facilities, and technical assistance. Total cost:USAID-United States Agencv for $40 million.

International Development BANGLADESH: IDA-$21 million. AboutWFP-World Food Programme 1 million farm families will benefit from a proj-

ect designed to improve productivity in jutecultivation and strengthen marketing of rawjute. The project aims to mitigate fluctuations

Agriculture and Rural Development in the supply of raw jute and help Bangladeshmaintain its share of the world jute market.

AFGHANISTAN: IDA-$22 million. Some Technical assistance is included. Total cost:12,000 farm families stand to benefit from a $33.28 million.second Khanabad irrigation project which aims BANGLADESH: IDA-$ 6 million. Throughto develop agriculture by rehabilitating and ex- construction and equipping of buildings, train-tending existing irrigation and drainage schemes, ing of staff, and technical assistance, agriculturalextending agricultural credit to farmers, and by research in the country will be strengthened-providing an efficient extension service. A ma- specifically the research facilities, managementlaria control program is included; so, too, is a and scientific manpower of the Bangladesh Agri-feasibility study for a dam about 90 kilometers cultural Research Institute, and the planning,above the project area. Total cost: $28.7 million. coordinating, and monitoring functions of the

Agricfltuire and Rural Development 73

Bangladesh Agricultural Research Council. To- trification. Total cost: $55.75 million.tal cost: $7.4 million. BURMA: IDA-$5.5 million. A seed de-

BOLIVIA: Bank-$9 million; IDA-$9 mil- velopment project will strengthen the govern-lion. Poor farmers, mostly in the Ulla Ulla region ment's applied research capability and will laynorth of La Paz, and artisans in La Paz and the foundation for future development of theCochabamba departments will benefit from an seed industry. Crops receiving the most empha-integrated system for the production, process- sis from the project are rice and cotton. Theing, and marketing of alpaca/Ilama/vicuna UNDP will finance the technical assistance com-wool, including handicraft development. Total ponent with a grant of $975,000. Total cost:cost: $24 million. $11.1 million.

BOTSWANA: Bank-$6.5 million. Help in CAMEROON: Bank-$15 million. Employ-arresting the deterioration of the country's range- ment and substantially increased incomes willlands through introducing improved range and be provided for about 5,000 estate workers andcattle management systems will be provided. 1,300 farmer families in this follow-up project,About 100 ranches will be developed, alterna- designed to increase output of palm oil andtive communal grazing systems tested, market- rubber. Technical assistance is included. Theing infrastructure improved, and credit provided CDC and the CCCE are helping to finance thefor ranch development and communal associa- project, with loans of $7.5 million each. Totaltions' schemes. EDF is granting $300,000 and cost: $37.2 million.ILCA is providing monitoring and evaluation CAMEROON: Bank-$14.5 million; IDA-services valued at about $1.3 million to help $14.5 million. Dikes, irrigation and drainagefinance project costs. Total cost: $12.2 million. systems, and access roads will be constructed

BRAZIL: Bank-$ 100 million. Almost three- over a 15,000-hectare site in the country's north-quarters of a million farmers will receive exten- ern province on which rice and other crops willsion services for the first time as a result of a be grown. Some 7.000 participating farm fam-project that will strengthen the federal and state ilies will be supplied support services, includinginstitutions responsible for providing agricul- credit. The CCCE is lending $8.1 million, andtural extension services. Special emphasis will the FAC is providing a $4 million grant to helpbe placed on three priority regions of the north, meet project costs. Total cost: $51 million.northeast, and center-west. Total cost: $284.92 CAMEROON: IDA - $13 million. Somemillion. 80,000 farming families in the western highlands

BRAZIL: Bank-$37 million. Through agri- region of the country will ultimately benefit fromcultural credit to improve and expand pro- a project that seeks to address itself to the re-duction by about 17,000 small farmers, by gion's farming system as a whole. Extensionstrengthening support services, and by provid- agents will be trained, field storage facilitiesing infrastructural improvements, agricultural improved, a revolving credit fund established,production and farm incomes in the state of 220 water points constructed, and technicalBahia's Paraguacu River basin will be raised. assistance provided. The project's direct eco-Total cost: $106.62 million. nomic benefit will be to increase the production

BRAZIL: Bank-$24 million. Farmers in the of food crops and coffee. Total cost: $22.8small northeast state of Paraiba will benefit from million.an integrated rural development project con- CAMEROON: IDA-$8.5 million. An esti-sisting of five main elements: agricultural pro- mated 13,200 farm families will benefit from anduction services, nonfarm production services, integrated rural development project in easterninvestment and seasonal credit to improve and Cameroon supporting institutional development,expand small-scale farms and nonfarm enter- agricultural production (coffee, cocoa, rice, fish,prises, infrastructure improvements (roads, and food crops), marketing and processinghealth, simple water supply systems, education, facilities, and social infrastructure. Total cost:and nutrition), and technical assistance. Total $11.8 million.cost: $67.3 million. CHAD: IDA-$11.5 million. About a million

BRAZIL: Bank-$17 million. Some 35,000 people will benefit from a livestock project thatpeople in Ceara state will benefit from directly will provide livestock services and credit toproductive components, and 150,000 will bene- associations of pastoralists, furnish equipment,fit from improved health and education services help finance a tsetse eradication program, andas a result of a project designed to raise rural provide for management training. The EDF isincomes by increasing yields on existing farms providing co-financing in the amount of $3.4and by increasing the area under cultivation. million. Total cost: $16.1 million.The project will be supported by improved ex- CHAD: IDA-$1.9 million. Fourteen sub-tension, agricultural experimentation, greater projects spread throughout the Sahelian zonecredit coverage, better health and sanitation of Chad will help increase development of cropservices, cooperative support, nonformal and farming, sustain and improve animal healthprimary education, feeder roads, and rural elec- services (some 250,000 families will be aided

74 Projects Approved, Bank and IDA

through a livestock vaccination program), main- IFAD ($10 million), USAID ($7.5 million),tain water supplies, expand forestry activities, the IDB ($6 million), and CIDA ($2.5 million).and increase the government's capacity to de- Total cost: $42.8 million.liver transport services. CIDA is contributing HONDURAS: Bank-$10.5 million. An in-$1.9 million as a grant to help meet project tegrated package of assistance and services willcosts. Total cost: $3.959 million. be provided for about 1,200 small farmers and

CYPRUS: Bank-$10 million. The entire 70 agrarian reform settlements with over 1,500population (21,000) of the underdeveloped families in selected areas of the Guayape RiverPitsilia region, located in the south-central part valley in this first phase of a possible projectof the country, will benefit from an integrated that would eventually cover the entire valley.rural development project that provides for Total cost: $14.6 million.complementary investments in productive, so- INDIA: IDA-$150 million. Farm incomescial, and institutional infrastructure. Production will be increased and employment opportunitiesof vines, potatoes, vegetables, and tree fruits provided for some 3.5 million village farmers,(including citrus) will increase. Total cost: $21 including 500,000 landless laborers through amillion. dairy development project intended to increase

EGYPT, ARAB REPUBLIC OF: IDA-S32 milk production in about 20,000 villages throughmillion. Some 52,500 smallholder farmers will a cooperative development program that in-benefit from a project that will initiate a process cludes animal breeding, feeding and health im-of rehabilitation of the agricultural credit, co- provement, and the development of facilities foroperative, and extension systems. Rural institu- milk collection, processing, and marketing. Totaltions will be strengthened to enable them to cost: $363.8 million.promote economic development and, through INDIA: IDA-$126 million. Agriculturalinvestments in two selected governorates, crop production will increase, farm incomes will rise,and livestock production will be increased. In and employment opportunities will be openedaddition, future livestock and credit projects will up, primarily for small farmers and landlessbe prepared. Total cost: $45.7 million. laborers, by a project designed to help complete

ETHIOPIA: IDA-$24 million. The project three major irrigation schemes presently underwill provide the Agricultural Marketing Cor- construction in northeastern Karnataka state.poration with incremental storage facilities for Total cost: $284.4 million.produce and farm inputs, equipment, permanent INDIA: IDA-$107 million. Yearly storagetrading capital, and technical assistance. By losses of wheat and rice will be reduced by somesupporting the establishment of an orderly grain 180,000 tons as a result of a project that willmarketing and input distribution system by tech- help the government construct storage facilitiesnical assistance to the regulatory Ethiopian needed for foodgrain procurement and distribu-Grain Agency, and by improving crop forecast- tion operations. In addition, foodgrain handlinging, more stable producer and consumer prices practices, including bulk handling, will be im-will be achieved, adequate production incen- proved. Total cost: $215.5 million.tives will be maintained, marketing margins INDIA: IDA-$85 million. Irrigated areasshould be reduced, and by creating buffer stocks will increase substantially and 10,000 and 12,000through a grain reserve, an adequate food sup- additional full-time jobs in the farm and non-ply throughout the country will be assured. farm sectors will be generated as a result of anTotal cost: $34.6 million. irrigation project in Gujarat state which, through

GREECE: Bank-$30 million. Some 9,000 increased production of foodgrains, oilseed, andfarm households (20% of whom live below cotton, will save the country $52 million yearlythe poverty line), as well as several cooperatives in foreign exchange. Total cost: $170.5 million.and trucking companies, will benefit from a INDIA: IDA-$70 million. The annual netproject that supports the production and mar- incomes of some 14,500 farm families may in-keting, primarily abroad, of about 140,000 tons crease fivefold, an additional 38,000 man-yearsof off-season vegetables-mainly cucumbers, of employment will be provided, and an annualtomatoes, eggplant, and peppers-in Crete and crop increase, valued at $24 million, is expectedthe Peloponnesus. Total cost: $84 million. to result from a project designed to complete

GUYANA: IDA-$10 million. Some 6,000 Maharashtra state's largest irrigation schemefamilies, 98% of whom fall below the poverty and initiate modernization of an adjacent irriga-line, will benefit from a project that seeks to tion project. Total cost: $140 million.increase the country's export earnings through INDIA: IDA-$58 million. The incomes ofrice exports. Through the rehabilitation and 30,000 farm households will increase as a resultimprovement of irrigation and drainage systems. of a project in Orissa state designed to utilizethrough on-farm development, and by improve- the many small rivers there for providing irriga-ment of agricultural supporting services, pro- tion to about 66,000 hectares of land whereductivity on about 30,600 hectares of land will large-scale irrigation or groundwater develop-be increased. Co-financing is being provided by ment is not possible. Total cost: $116 million.

Agriczilture and Rural Development 75

INDIA: IDA-$17.5 million. About 75,000 planting scheme for 3,750 existing smallholderssubsistence fishermen will benefit from a project will be implemented, new rubber plantings un-aimed at improvement and expansion of existing dertaken for the benefit of the public sectorharbor and shore facilities in three locations in estate (PTP IV), and program support and tech-Andhra Pradesh, an expansion of the mechanical assistance provided for smallholder andnized fishing fleet and seafood processing capac- nucleus estate development. Total cost: $100.5ity, and provision of village access roads and million.water supply. Total cost: $36.5 million. INDONESIA: Bank - $31 million. An

INDIA: IDA-$16 million. Help in financ- eleventh irrigation project, designed to assist theing the second phase in the implementation of government's program to extend the provision ofIndia's National Seed Program (designed to in- irrigation facilities and to provide storage so ascrease the availability of high quality seeds) will to enhance the productivity of existing irrigatedbe furnished. Seed output would be increased areas, will ultimately benefit about 36,000 fam-by 125,000 tons, and coverage extended to five ilies, and increase rice production by 35,000additional states. Total cost: $34.9 million. tons yearly. Total cost: $47.4 million.

INDIA: IDA-$14 million. Through provi- INDONESIA: IDA-$30 million. Financesion of improved marketing facilities, credit for will be provided for long-term loans to aboutcrop production, research, and technical assist- 40,000 smallholders for subprojects mainly inance, marketing and production of apples and fisheries, livestock, and perennial crops. Tech-walnuts, and research on mushroom develop- nical assistance will be provided to Bank Rakyatment in Jammu and Kashmir will improve, and Indonesia, through which the subloans will bethe incomes of 40,000 growers will be increased. made. Total cost: $60 million.Total cost: $27.6 million. IVORY COAST: Bank - $20 million. A

INDIA: IDA-$13 million. The project will 13,500-hectare rubber plantation, begun underhelp increase yields as a result of the strengthened an earlier project, will be completed by theagricultural extension and adaptive research sys- planting of 6,500 hectares of rubber trees.tem in the state of Rajasthan. It will directly ben- Access roads and social infrastructure will beefit 290,000 contact farmers and, through them, provided for, as well as credit and extension serv-1.5 million families of the 2.9 million families ices for outgrowers. Technical assistance willin the project areas. Total cost: S27.6 million. be furnished, and a rubber processing factory

INDIA: IDA-$8 million. An estimated 7.6 built. Co-financing will be provided by themillion farm families will benefit from a project CCCE ($8.3 million), the EDF ($5.5 million),that will reorganize and strengthen Bihar state's and the EIB ($4.5 million). Total cost: $53.6agricultural extension services, and help upgrade million.and develop adaptive research. The project is JAMAICA: Bank-$18 million. The coun-designed to achieve early and sustained improve- try's three largest raw sugar factories and itsments in agricultural production, particularly only sugar refinery will be rehabilitated throughfoodgrains. Total cost: $16.01 million. a project designed to reverse declines in sugar

INDONESIA: Bank-$140 million. Some production. Technical assistance is included.189,000 farm families will benefit from a tenth Total cost: $33.8 million.irrigation project designed to rehabilitate, up- KOREA, REPUBLIC OF: Bank-$95 mil-grade, and expand existing irrigation systems. lion. A large proportion of the country's ruralThree construction components are included in population will benefit from a second rural in-the project, as are feasibility studies and detailed frastructure project with the following compo-design work for a number of dams. Total cost: nents: irrigation of about 9,200 hectares, con-$216 million. struction of rural water supply systems in about

INDONESIA: Bank-$65 million. The net 7,400 villages, construction or improvement ofincomes of some 5,750 settler smallholder fam- river banks, connection of 2,700 villages to theilies in Sumatera will triple, and 16,500 perma- telephone network, training, and project moni-nent jobs will be created by a project in which toring and evaluation. Total cost: $232 million.11,500 hectares of rubber holdings will be KOREA, REPUBLIC OF: Bank-$36 mil-planted. Additional public sector rubber estate lion. Rice and barley production will be in-areas will be replanted or rehabilitated, coco- creased through changes in land use, drainagenuts and oil palm planted, and palm oil and improvement, and on-farm development. Therubber processing facilities constructed. Total project, which will benefit some 130,000 people,cost: $134 million. will support the government's efforts to increase

INDONESIA: Bank-$65 million. Some foodgrain production and rural incomes through7,600 families will be settled on two new settle- irrigation and land development. Total cost:ments in Sumatera, and social and physical in- $76 million.frastructure provided, as well as agricultural LAO PEOPLE'S DEMOCRATIC REPUB-inputs to sustain the planting and maintenance LIC: IDA-$8.2 million. Some 10,000 farmof 15,200 hectares of rubber trees. A rubber re- families living in the Vientiane plain will benefit


from a project that includes construction of MALAYSIA: Bank-$19 million. About 1simple irrigation facilities, establishment of 10 million rural families will be reached through apig breeding farms (where weaned pigs will project designed to provide the infrastructurebe sold to farmers for fattening), and equip- and extension services needed to increase thement furnished to two rice institutes, where, in yields of paddy, other field crops, and coconuts.addition to expanding production of local rice Extension and seed production services, withvarieties, farmers will be trained in techniques particular emphasis on areas of rural poverty,of cultivation. The UNDP is providing a tech- will be increased. Total cost: S46.5 million.nical assistance grant of $1.7 million. Total MALI: IDA-$15 million. Some 90,000 peo-cost: $11.9 million. ple living in the flood plains of the Niger River

LESOTHO: IDA-$6 million. Some 130,000 will benefit from a project that will help increasefamilies are expected to benefit from a Basic rice production through construction of newAgricultural Services Program that seeks to polders and improvements made to polders con-boost output of five major crops (corn, sorghum, structed earlier. A village adult literacy programbeans, peas, and wheat) in six areas, covering will be established, credit for fertilizer and farm75% of the country's arable land, and encom- implements will be made available, and tech-passing two-thirds of the population. Co-financ- nical assistance and equipment furnished. Theing from Germany ($4.7 million, of which $1.8 ADF and the FAC are joining in the financing,million is in grant form), the United Kingdom, with loans of $6 million and $2 million, respec-the EDF, and the UNDP (grants of $3.9 mil- tively. Total cost: $31.2 million.lion, $3.8 million, and $200,000, respectively) MEXICO: Bank-$200 million. Aboutare anticipated. Total cost: S26.4 million. 67,000 farm families will benefit from a sixth

LIBERIA: Bank-$7 million; IDA-$6 mil- agricultural credit project that is also expectedlion. Rubber production on Liberian-owned to generate over 14,000 full-time jobs. Thefarms, and incomes of 6,300 small- and medium- credit will be provided for investment in live-scale rubber farmers will substantially increase stock production, annual and perennial cropfrom a project that includes an intensive pro- development, and agro-industries. Total cost:gram of replanting and rehabilitation through $627.2 million.credit, extension services, training, and assist- MEXICO: Bank-S56 million. Through de-ance for rubber processing and marketing. velopment of six pilot projects introducing tech-Technical assistance is included. Total cost: nical packages for annual and perennial crops$29.6 million. and livestock; by improving and expanding agri-

MALAWI: IDA-510.7 million. Through cultural and livestock extension programs in theprovision of agricultural credit and extension humid tropics; and through support of tropicalservices, establishment of an irrigated seed mul- agricultural and livestock research programs,tiplication farm and an afforestation program, assistance will be provided a long-term programimprovement in livestock extension services and for intensifying agricultural production in thein health and water supply facilities, expansion country's humid tropical areas. Total cost: $149of a fisheries development program, and exten- million.sion of the farm-to-market road network, further MOROCCO: Bank-$65 million. The stand-development of the Shire valley region will be ard of living of about 33,900 farm families inassisted, and investments made since 1968 con- the Fes-Karia-Tissa region will improve andsolidated. Total cost: $12.6 million. agricultural production will increase through

MALAYSIA: Bank-S28 million. Land will a project that includes a reorganization andbe cleared and planted to rubber (at least strengthening of agricultural services (exten-25,000 hectares). cocoa (4,000 hectares), and sion and credit) and provision of infrastructureannual crops (200 hectares). Social and eco- -roads, village water supply, and health andnomic infrastructure will be provided to 6,200 education facilities. Total cost: $161.5 million.families, all living beneath the poverty line, and NEPAL: IDA-$30 million. An irrigationemployment on cocoa estates will be provided project in southeastern Nepal will-through thefor some additional 1,500 families. Total cost: restoration and improvement of the existing sys-$92.3 million. tem, and the provision of new structures for

MALAYSIA: Bank-$26 million. The pro- regulating canal flows-decrease the deposit ofductivity and incomes of 32,000 smallholder sediment, increase the reliability of water de-farm families, two-thirds of whom have incomes liveries, and extend the supply of water, thusbelow the absolute poverty line, will be improved increasing the productivity and incomes of someas a result of an integrated agricultural develop- 35,000 farm households. Total cost: $37.5ment project in northwest Selangor state that million.includes provision of improved drainage and NIGER: IDA-$4.5 million. Through theirrigation facilities, access roads, training, and establishment of 400 hectares of pilot irrigatedintensified agricultural supporting services. Total tree plantations and 700 hectares of pilot rain-cost: $60 million. fed tree plantations, and through a program of

Agriczultutre and Ruiral Development 77

technical assistance to the Forestry Department, finance the second stage development of a multi-a sound basis will be provided for proceeding purpose project on the Magat River, a loan willwith larger-scale national development of the be made available to support a project consistingcountry's dwindling forestry resources. Total of all civil works for the main dam and appur-cost: $5.3 million. tenant structures, reservoir resettlement, in-

NIGERIA: Bank-$30 million. The Rivers stalled mechanical equipment, and the servicesstate government will be provided assistance in of consultants. Total cost: S346 million.financing the planting of some 20,000 hectares PHILIPPINES: Bank-$65 million. Moreof oil palm on a nucleus estate and associated than 300,000 people, most of them below thesmallholdings and the construction of a palm poverty line, and living in southern Luzon, theoil mill. Earth roads serving smallholders will western Visayas, and in Mindanao, will benefitbe improved or reconstructed, staff and small- from a project designed to aid the rehabilitationholders will be trained, and feasibility studies of existing irrigation systems and constructionfor a second phase of the project carried out. of new ones, covering a total of 80,900 hectares.A coconut project identification and prepara- Road facilities will also be built, a schistosomiasistion study will also be undertaken. Total cost: control program in Mindanao will be inaugu-$83 million. rated, and technical assistance provided to the

PAKISTAN: IDA-$70 million. Soil salini- National Irrigation Administration. Total cost:zation will be halted and surface water deliveries $140 million.increased by a project that includes canal re- PHILIPPINES: IDA-$28 million. Paddymodeling, tubewell and drainage system con- production will increase, jobs will be created,struction, and credit and technical assistance to isolated rural families will be integrated into thefarmers living east of the Indus River in the mainstream of economic life, health standardsRahimyar Khan district of Punjab province, will be improved, and the availability and qual-Agricultural production (mainly foodgrains. ity of water increased by a rural infrastructureseed cotton, and oilseeds), employment, and project in six provinces providing for the con-incomes should all increase substantially. The struction and rehabilitation of irrigation facilitiesUnited Kingdom is extending a $ 16 million grant and rural roads, rehabilitation and improvementand the KfW a $9.5 million credit to help meet of three ports, and the constrLction of villa,geproject costs. Total cost: $170 million. health stations and wells. Total cost: $59 million.

PAKISTAN: IDA -$35 million. Repairs PHILIPPINES: Bank-$8 million. Someand additional works required for the Tarbela 7,400 poor smallholders working 28,600 hectaresdam project will be undertaken, with additional of land, and living in several areas of the coun-help (contingent on formal approval by their try, will benefit from the establishment of treeauthorities) expected from Australia, Canada. farms. Additionally, 3,000 hectares of pineGermany, Italy, the Netherlands, the United plantations will be established in northernKingdom, and some OPEC countries. Total Luzon. Total cost: $16 million.cost: S 1,274 million. PORTUGAL: Bank-$70 million. More than

PAKISTAN: IDA-S 12.5 million. Agricul- 25.000 people will benefit directly from a projecttural extension services will be strengthened, and that aims at providing the impetus needed toadaptive research farms developed in five of make the government's new agricultural andPunjab's 21 districts. Marginal and small farm- fisheries credit system operational and at con-ers would be the main beneficiaries of a new tributing to food production through provisionextension and research system and of the proj- of credit for on-farm development, agro-indus-ect's emphasis on efficient use of existing re- trial development, the construction of fishingsources. Total cost: $20.8 million. vessels, and through the strengthening of project

PAKISTAN: IDA-$3 million. A three-year implementation agencies. Total cost: $256.5project will assist in developing improved tech- million.nologies in food, fodder, horticulture, and tree ROMANIA: Bank-$71 million. Credit willcrop production in Azad Jammu and Kashmir. be made available so as to increase the supplvPilot projects, trial schemes, and experimental of pork available for domestic consumption ordemonstration farms will be set up. A follow-up for export, and to increase efficiency and pro-project to extend improvements to farmers will ductivity in the pork industry. Total cost: $322.5be prepared. Total cost: $4.5 million. million.

PAKISTAN: IDA-$1.7 million. Assistance ROMANIA: Bank-$40.5 million. Agricul-will be provided to the government in formulat- ture production in an area of about 115,000ing an integrated program for the development hectares in Teleorman county, 100 kilometersof forest resources in the Hazara region of North west of Bucharest, will be increased and stabil-West Frontier province, an area with few other ized through investment in irrigation and relatedresources for development. Total cost: $2.6 farm development. Labor productivity will alsomillion. be increased. Total cost: $153.5 million.

PHILIPPINES: Bank-$ 150 million. To help SENEGAL: IDA-$20 million. The incomes

78 Projects A pproved, Bank and IDA

of some 9,000 people, among the poorest in charge national agricultural research programsSenegal's rural areas, will increase as a result of should be strengthened. Total cost: $45.4 million.a project that provides for civil works, agricul- TANZANIA: IDA- $27.5 million. Thetural development activities, consulting services, country's annual processing capacity of cashewand technical assistance so as to continue irriga- nuts will increase by 30,000 tons, employmenttion development in the Senegal River delta and, will be created for about 3,000 people, andthrough the strengthening of the national devel- foreign exchange will increase through a secondopment agency, to prepare the future integrated project in support of the commodity which isdevelopment of the entire river valley. Co-finane- grown predominantly by smallholder farmers.ing is being provided by the Kuwait Fund ($5.3 Total cost: $36.3 million.million) and FAC ($2.7 million). Total cost: TANZANIA: IDA-$14 million. Incomes of$35 million. the country's tobacco growers will rise, mar-

SRI LANKA: IDA-$21 million. Through keted production of the crop will increase (andreplanting and infilling on about 7,000 hectares so, too, will the profits of the Tobacco Authoritywith high-yielding clonal tea plants, through of Tanzania) through a project designed to cutrehabilitation and expansion of tea factories and losses by 25% during tobacco handling. Plasticreplacement of obsolete machinery, vehicles, and bulking bags will be supplied farmers, grading/equipment, efficiency in production will be in- baling centers and marketing centers built, ware-creased and a better quality of tea produced. houses constructed, and technical assistanceAbout 25,000 estate labor families will benefit supplied. Total cost: $20.7 million.from improved housing, water, and health serv- TANZANIA: IDA-$12 million. More thanices, and some 15,000 man-years of incremental a half million people with a per capita incomeemployment will be created. Total cost: $30.8 of less than $75 a year will benefit from a ruralmillion. development project that includes agricultural

SRI LANKA: IDA-$4.5 million. Degraded investments, a village self-help program, roadlands, consisting mostly of nationalized tea improvements, and water supply facilities. Jointfarms, will be rehabilitated, diversified, and set- financing, in the amount of $12 million, will betled, mainly by displaced estate workers, who provided by IFAD. Total cost: $30.5 million.will also be provided necessary social infrastruc- TOGO: IDA-$14 million. About 53,000ture at low cost. Some 4,500 small farms based poor farm families, or 20% of the country'son mixed minor tree crops, will be established. population, will benefit from expansion of cot-In addition, about 3,700 hectares of forest will ton, maize, sorghum, and groundnut production,be commercially developed, and 2,200 hectares and new and improved feeder roads. The na-of forest will be developed for conservation pur- tional agency, SOTOCO-the Societe Togolaiseposes. Total cost: $6.5 million. du Coton-will be strengthened. The FAC is

SUDAN: IDA-$25 million. The project will providing a $5.1 million grant. Total cost: $23.6support the creation of a national livestock million.marketing system through improvement of both TURKEY: Bank-$86 million. By providingmarket and transport infrastructure, and the for construction of 26,000 kilometers of logging-provision of staff and supporting services for the extraction, forest, and village access roads, andLivestock and Meat Marketing Corporation. The the stabilization of 25,000 kilometers of existingUnited Kingdom will finance a technical assist- forest roads; through procurement of specializedance component, estimated to cost $3.1 million, logging equipment, vehicles, and the installationon grant terms. Total cost: $43.1 million. of maintenance workshops; through the estab-

SUDAN: IDA-$16 million. Increased pro- lishment of an intensified forest managementduction of sorghum and sesame for export will program; and with technical assistance, forestresult from a project designed to help existing management planning and operations will belarge-scale mechanized farmers to become more improved, industrial roundwood production in-productive and to support two programs increased, and additional employment created.tended to devise mechanized farming systems for Total cost: $915 million.use by smallholders. Total cost:$21.4 million. TURKEY: Bank-$24 million. Through a

SUDAN: IDA-S15 million. By developing program of supervised credit to about 5,200the research capability of the Agricultural Re- subborrowers for investment in imported andsearch Corporation (ARC) in western Sudan, local animals, farm buildings, pasture improve-by implementing research programs in this ment and foodstuff production, and throughregion, and by expanding support services at expansion of technical/extension services toARC's new Khartoum headquarters, crop and farmers and training of professional staff andlivestock production technology should improve, farmers, the gains made in eastern Turkey forfarmers in western Sudan should be able to in- village development will be consolidated andcrease their production and incomes, land use extended, and the improved dairy productionmanagement in the ecologically fragile region concepts introduced in western and centralshould improve, and the capacity of ARC to dis- Turkey under previous livestock projects also

Education 79

extended. Total cost: $83.2 million. CHAD: IDA-$8.3 million. Primary educa-YEMEN ARAB REPUBLIC: IDA-$10.5 tion in rural areas will be improved by replacing

million. Incomes of some 3,700 agricultural existing dilapidated schools and by undertakingfamilies in the Tihama coastal plain will sub- a series of studies aimed at introducing a morestantially increase as a result of greater agri- efficient administration of education. In addition,cultural productivity resulting from investments the government will be aided in its attempt toin extension, agricultural credit, and access improve secondary technical education, and anroads, expanded use of inputs and equipment, Agricultural Technician Training Center will beand the provision of technical assistance. Co- opened. Co-financing is to be provided byfinancing is being provided by the UNDP, the the UNDP ($600,000) and the UNCDFEEC, and others. Total cost: $39.5 million. ($300,000). Total cost: $9.2 million.

YEMEN, PEOPLE'S DEMOCRATIC RE- EL SALVADOR: Bank-$9 million. Indus-PUBLIC OF: IDA-$5.2 million. The gross trial and agricultural training in the country willvalue of agricultural production on 7,000 hec- be increased through a project calling for thetares of state and cooperative farmland will construction, equipping, and furnishing of in-increase by about 107% and about 7,000 co- dustrial and agricultural training centers, as welloperative farm families (36,000 people) will as of facilities for training industrial supervisoryhave their average annual incomes rise by 63% personnel and small and medium-scale business-as a result of a project that seeks to increase the men. Technical assistance is included. Totalefficient use of water and to raise agricultural cost: $12.7 million.production through the use of modern inputs and THE GAMBIA: IDA-$5.5 million. Throughimproved cultivation practices. A satellite survey the construction of a technical institute, train-of selected parts of the country, to identify areas ing facilities for nurses and paramedical person-of groundwater and agricultural potential, is also nel, a management development institute, 30included, as are technical assistance and training. teaching "areas" in secondary technical schoolsTotal cost: $12.3 million. for science, technology, and practical work,

YUGOSLAVIA: Bank-$75 million. Agri- three regional education centers for school ad-cultural credit will provide for investments in a ministration and teacher retraining and upgrad-wide variety of agricultural and agro-industrial ing, and by establishing an educational planningactivities. The less developed regions will receive unit within the Ministry of Education, the gov-half the loan, which is much larger than their ernment's education and training policies willshare of the national agricultural product. Of the be supported, and manpower constraints will beproposed loan, 57% will be allocated to individ- eased. Total cost: $6.5 million.ual farmers, and a significant part of that per- GREECE: Bank-$60 million. Through as-centage will reach the poorer farmers throughout sistance provided to 61 lower secondary schools,the country. Total cost: $231 million. 10 combined Vocational/Technical upper sec-

ZAIRE: IDA-S9 million. Through planting ondary schools, four post-secondary higherof 12,215 hectares of oil palm, by renewing the Technical and Vocational Education Centers,equipment of three oil mills, by the purchase of and a post-university school for the advancedneeded equipment, and by providing for the training of secondary education teachers andconstruction of staff and workers' housing, officials, the country's technical secondary/post-schools, and clinics, the trend of rapid deteriora- secondary education and general secondarytion of palm oil production may be reversed. teacher training program will be improved. TotalTechnical assistance is included. The ADF, the cost: $123.5 million.CCCE, and BADEA are lending $6.1 million, HAITI: IDA-$ 10 million. Physical facilities$4.2 million, and $4.4 million, respectively, to for 19,500 primary school students and abouthelp meet project costs. Total cost: $47.4 million. 240 students in teacher-training will be built,

vocational and agricultural schools will be pro-

Education vided, and the quality of primary education formore than 300,000 children will be improved

ALGERIA: Bank-$90 million. By supplying by a second education project designed to correctengineers and higher technicians in mechanical inequalities in access to primary education andengineering, workshop instructors for an ex- improve its relevance and internal efficiency. Thepanded network of vocational training centers, supply of skilled and semi-skilled industrialand technical/workshop teachers for the civil workers, agricultural extension agents, and ruralengineering technology sections of a new net- community development agents will be increasedwork of technicums, the acute manpower short- as well. The UNDP is providing a $470,000ages of high- and middle-level technicians and technical assistance grant. Total cost: $12.67skilled craftsmen will be alleviated. Regional million.inequalities will be reduced, and local industrial HONDURAS: IDA-$5 million. Govern-development supported. Total cost: $150.5 ment efforts to increase the coverage and qualitymillion. of primary education in rural areas and to train


critical middle- and higher-level agricultural and ment's capacity to administer educational activi-forestry manpower will be aided. Total cost: ties and to restructure secondary education$7.6 million. through the provision of additional student

INDONESIA: Bank-$15 million. Through places, technical assistance, and facilities for athe strengthening of Penmas, the government reorganization of the Ministry of Education andagency responsible for out-of-school education, Cultural Affairs, and by improving the Primaryvocational training, and basic education will be Teacher Training College, the Ministry's Audio-provided to about 2.5 million Indonesians in Visual Center, and the Mauritius Institute ofseven provinces between 1979 and 1982. The Education. Total cost: $23.8 million.priority benefiting groups will be the poorest NEPAL: IDA-S5.7 million. By helpingsegments of the population, with emphasis on finance facilities and equipment for the Institutewomen, out-of-school youths, and young adults. of Engineering of Tribhuvan University, theTotal cost: $33.1 million. supply of qualified engineering technicians

KENYA: IDA-$23 million. Agricultural, needed to implement the country's developmenttechnical, and administrative training will im- programs will be increased. The United Kingdomprove and increase through the expansion or has agreed to help finance the costs of relatedconstruction of new educational facilities; equity staff training and specialists' services. Total cost:in access to primary and post-primary levels of $7.82 million.education will be improved through construction PHILIPPINES: Bank-$2 million. A pilotand equipping of school facilities (including project for developing and evaluating the costconstruction of 13 boarding primary schools for effectiveness of educational radio in two areaschildren of nomads); and technical assistance -in-service teacher training and primary class-will be provided. Total cost: $30 million. room teaching-will be financed. Related studies

KOREA, REPUBLIC OF: Bank-$23 mil- and the preparation of a possible future projectlion. A vocational training project will contribute will be provided for. Total cost: $3.86 million.to meeting the manpower requirements of the PORTUGAL: Bank-$21 million. Manpowergrowing industrial sector through the provision will be trained to help meet the needs of theof training facilities for skilled workers. It will economy, and the quality and efficiency ofsupport the government's efforts to provide education will be improved. The project alsosocial equity through the development of the includes a study to determine the nation's man-system of Vocational Training Institutes, which power needs up to the year 1990. Help in meet-constitutes an alternative means of industrial ing the costs of technical assistance will beskill acquisitions (and subsequent employment) provided by the United Kingdom and Sweden.for deserving middle-school graduates from low- Total cost: $47.9 million.income families, about half of whom would be SOMALIA: IDA-$8 million. The quality offrom rural areas. Total cost: S56.2 million. education, manpower development, and institu-

LESOTHO: IDA-$7.5 million. An education building will be enhanced through a projecttion project will contribute to the country's featuring curriculum development, the provisionlong-term national objectives of economic of teaching aids and primary textbooks, and thegrowth, social justice, and reduction of economic development of regional centers for the improve-dependence on South Africa. Curriculum will ment of adult education. The ADF is making abe developed, and facilities for teaching pre- parallel loan of about $1.7 million to help meetvocational subjects in secondary schools will be the project's costs. Total cost: $11.3 million.expanded. The pool of skilled workers within SWAZILAND: Bank-$4 million. A secondLesotho will be increased, and individual workers education project will assist in the expansion ofseeking employment in South Africa will be able the country's basic education cycle from sevento obtain higher wages because of an improved to 10 years and will improve the cycle throughskill base, thus enabling them to increase their the introduction of science and practical studies.remittances to their families. Technical assist- Some 13 existing junior secondary schools willance is included. Total cost: $9.29 million. be expanded, and four new ones built; and a

MALI: IDA-$10 million. Basic education "model agricultural center" will be constructedprograms for children and adults not serviced and equipped. Total cost: $6 million.by the school system will be developed; science SYRIAN ARAB REPUBLIC: Bank-$20and technology courses will be improved and million. The quality and relevance of educationextended to rural lower secondarv schools; will be improved through support of curriculatraining of agricultural and livestock technicians reform and the provision of new teacher trainingwill be expanded; and a functional literacy pro- facilities; the training of semi-skilled and skilledgram, designed to make farmers more receptive workers and technicians will help in meetingto new techniques, will be extended to new re- manpower needs; and sector institutions will begions of the country. Total cost: $12 million. strengthened through support for the establish-

MAURITIUS: Bank - $15.2 million. The ment of a national entity for the planning,project will assist in strengthening the govern- coordination, and rationalization of vocational

Industrial Development and Finance 81

and technical training activities. The UNDP and ones and those that make use of local resourcesthe US, British, and French governments are -will be increased, and the capacity of partici-expected to help finance part of the project costs. patory financial intermediaries to select, ap-Total cost: $40.3 million. praise, and supervise efficient export- and

URUGUAY: Bank-$9.7 million. Initiation import-substitution projects built up. Total cost:of a national vocational training program to meet $49 million.the training needs of the export-oriented indus- EGYPT, ARAB REPUBLIC OF: Bank-$40trial sector will be supported, and the govern- million. Part of the Development Industrialment and private sector assisted in selecting Bank's foreign exchange requirements over theappropriate technologies and in improving and next two years will be met. A special effort willexpanding quality control for exports. Buildings be made to assist small-scale industrial enter-for the Vocational Training Council and new prises, and technical assistance will be provided.laboratories for the Technological Laboratory The OPEC Special Fund is participating in theof Uruguay will be constructed and equipped, project with an $8.75 million loan.and technical assistance furnished. Total cost: THE GAMBIA: IDA-$3 million. This proj-$16.4 million. ect addresses the credit needs of rural and urban

enterprises and seeks to build up the Gambia

Industrial Development and Finance Commercial and Development Bank (GCDB)as a financial intermediary. About 80 rural and

BANGLADESH: IDA-$7 million. Subloans urban entrepreneurs and artisans are expectedfor equipment and permanent working capital to benefit, and some 700 jobs may be created.of small enterprises and cottage industries will Technical assistance to the GCDB is included.be financed; a special capital fund providing Also included will be a study of housing financesupplementary financing to selected projects for in the country. Total cost: S4.5 million.which the sponsors are unable to provide suffi- INDIA: Bank-$80 million. This twelfthcient equity will be set up: a pilot cottage industry loan to the Industrial Credit and Investmentcomponent for jute and cane/bamboo handi- Corporation of India, the country's primarycrafts will be established; and technical assistance source of foreign exchange investment funds forwill be furnished to strengthen the Bangladesh private industry, will help finance high-prioritySmall and Cottage Industries Corporation and industrial projects, many of which are export-to support the development of small and cottage oriented and/or located in "backward" areas.industries. INDIA: Bank-$25 million. Foreign ex-

BURUNDI: IDA-$3.4 million. Foreign exchange will be provided, through the Industrialchange will be made available to the Banque Development Bank of India, to meet the foreignNationale de Developpement Economique exchange costs of medium-sized industrial proj-(BNDE), a limited liability company providing ects in the public and joint sector sponsored byfinance for productive enterprises in the agri- the states of India.cultural, industrial, artisanal, and tourism sec- INDONESIA: IDA-$40 million. Incomestors, and for housing. The costs of two technical of small farmers and businessmen will be im-experts to assist BNDE's technical capability in proved, and additional employment opportuni-project appraisal and implementation will also ties are to be provided by a project that aidsbe financed. Bank Indonesia in strengthening, over the next

COLOMBIA: Bank-$100 million. Private 30 months, its existing Small-Investment-Credit/industry will be developed through contribution Small-Permanent-Working-Capital Credit pro-of foreign exchange for loan and equity financing gram. Total cost: $80 million.by development finance companies of investment KENYA: IDA-$ 10 million. Credit, support-projects, including technological improvements ive facilities, and institution-building assistanceand pollution control, in manufacturing, agro- will be provided the Kenya Industrial Estates, aindustry, mining, and tourism. semi-autonomous, government-supported indus-

COLOMBIA: Bank-$15 million. Through trial promotion agency, and an agency throughdevelopment of 38 hectares of land for an which future external assistance to small-scaleindustrial export processing zone, by providing industries will be channeled. Total cost: $15.6infrastructure (power distribution lines, road million.improvements, and a water transmission main), KOREA, REPUBLIC OF: Bank-$I 10 mil-and by providing technical assistance for inter- lion. Help in meeting the foreign exchangenational promotion, exports will increase and requirements of subprojects to be financed bydiversify, and employment will be fostered in the Korea Development Bank over the next twoCartagena, capital of one of the country's poor- years will be provided; up to SIO million of theest departments. Total cost: $31.3 million. loan will be earmarked for the financing of small

COSTA RICA: Bank-$15 million. The and medium-sized leasing projects.amount of medium- and long-term credit avail- KOREA, REPUBLIC OF: Bank-$55 mil-able to industries-especially labor-intensive lion. Part of the foreign exchange requirements

82 Projects Approved, Bank anid IDA

of industrial subprojects to be financed by the Organization), a private financial institution, toMedium Industry Bank will be met; some $20 provide medium- and long-term finance for in-million of the proceeds are to be earmarked to vestment in the industrial sector will be devel-assist small-scale, labor-intensive subprojects. oped. PISO will make subloans to finance foreign

MAURITIUS: Bank- $7.5 million. The exchange requirements of projects, mainly inforeign exchange requirements of the Develop- manufacturing.ment Bank of Mauritius, which makes loans and SRI LANKA: IDA-$8 million. A substantialinvestments in the industry, agro-industry, and portion of the Development Finance Corpora-tourism sectors, will be filled until mid-1979. tion of Ceylon's estimated foreign exchange

MEXICO: Bank-S100 million. Funds will requirements over the next two years, for lend-be provided to the Fondo de Equipamiento In- ing to private sector industrial projects anddustrial for re-lending to industrial enterprises tourism. will be met.through the commercial banking system to help TANZANIA: Bank-$15 million. Part of thefinance machinery, equipment, and other fixed Tanzania Investment Bank's (TIB) foreign ex-assets for projects that will improve the country's change requirements through 1980 will be met,balance of payments through exports or efficient thus enabling TIB to expand its operations (tra-import substitution. ditionally, it has financed manufacturing enter-

MEXICO: Bank-$47 million. The project prises) into financing for agro-industries andaims at expanding the production capacity and transport- and tourism-associated projects.improving the efficiency of small and medium- TUNISIA: Bank-$35 million. Thirty millionscale industrial enterprises by means of a com- dollars will be lent to the Banque de Developpe-prehensive program of technical and financial ment Economique de Tunisie to help financeassistance through three federal government trust lending for industry. Of this amount, $2 millionfunds created to serve the needs of such enter- is to be earmarked for financing the expansionprises. Total cost: S132 million. of existing small-scale enterprises. The remain-

NIGER: IDA-$5 million. A line of credit ing $5 million is to be channeled through anwill be provided the Banque de Developpement account with the Central Bank to help financede la Republique du Niger (BDRN) to help fi- exclusively newly created small-scale enterprises.nance labor-intensive small and medium-scale UPPER VOLTA: IDA-$4 million. Creditenterprises. Technical assistance will also be and technical assistance will be provided tomade available to BDRN. The project also pro- artisans and small and medium-scale enterprisesvides for financial and technical assistance to relying on three institutions-Banque Nationale(a) a new agency providing technical assistance de Developpement, Office de Promotion deand training to local entrepreneurs; and (b) the l'Entreprise Voltaique, and Centre National deArtisans Center of the National Museum so as Perfectionnement des Artisans Ruraux. Aboutto stimulate productivity and employment of 2.250 new jobs may be generated.artisans. Total cost: $8. 1 million.

NIGERIA: Bank-$60 million. Term financ- lndustrying for about 25 industrial enterprises to meetone-third of total investment costs will be pro- BRAZIL: Bank-$85 million. A raw mate-vided. Subloans are expected to be in the areas rials plant, with a production capacity of aboutof light manufacturing, construction materials, 1.25 million tons a year of ethylene, propylene,agro-allied industries, food and beverages, and butadiene, benzene, and other petrochemicalhotels. Total cost: $180 million. derivatives will be built, as well as a utilities

PHILIPPINES: Bank-$80 million. Long- plant consisting of steam production, waterterm finance will be supplied the Development treatment, and power facilities. The country'sBank of the Philippines for the establishment of need to import petrochemicals will lessen, andindustrial enterprises of all sizes except for industries will be diversified away from the Saocottage industries. Of the total, $50 million will Paulo and Rio de Janeiro areas. The IDB isbe earmarked for large-scale enterprises, 529.7 providing co-financing in the amount of $111.7million for small and medium-scale industry, million. Total cost: $836 million.and about $300,000 will be used to establish a INDONESIA: Bank-$10 million. The tech-development banking institute to train the man- nical and economic viability of substituting coalagement and personnel of smaller development from the Bukit Asam mine in Sumatera for oilfinance institutions. (to be used for electricity generation) will be

PHILIPPINES: Bank-S30 million. Through established, and the implementation of an in-the Private Development Corporation of the tegrated coal mine-transportation expansionPhilippines, subloans will be made to help project will be prepared. Total cost: $13.22 mil-finance the foreign exchange requirements of lion.projects, mainly in manufacturing. ROMANIA: Bank-$85 million. Two new

PHILIPPINES: Bank-$15 million. The ca- tire manufacturing plants will be built to man-pacity of PISO (Philippine Investments Systems ufacture truck, tractor, and off-the-road tires.

Power 83

Some 4,300 new jobs will be created, increasing crease the efficiency and financial viability ofdomestic demand for tires will be met, and the jute and cotton textile industries.foreign exchange will either be saved or earned. JAMAICA: Bank-$30 million. Foreign ex-Total cost: $258.2 million. change needed by private and public sector en-

ROMANIA: Bank-$60 million. Through tities for imports of raw materials, intermediateassistance to damaged enterprises requiring im- goods, and capital equipment-all needed formediate reconstruction, and to enterprises in and the country to maintain a reasonable level ofrelated to the critical construction sector, the production in industry and agriculture-will begovernment will be helped in meeting the re- provided.maining needs of delayed reconstruction and LEBANON: Bank-S50 million. Reconstruc-deferred construction activities caused bv the tion wvork following the civil war will be under-March 1977 earthquake. Specialized equipment taken. Beirut's port and telecommunicationsfor a National Center for Earthquake Engineer- system will be rehabilitated, as will its watering will also be financed. supply and sanitation facilities. Studies designed

TANZANIA: Bank-$25 million; IDA-$20 to accelerate the preparation of future projectsmillion. The project consists of an integrated for urban reconstruction and development aretextile mill with spinning, weaving, and process- included. Total cost: $83.6 million.ing facilities to produce about 21.5 millionsquare meters of blended fabrics as well as 650 Population and Nutritiontons of polyester/rayon yarn. Technical assist-ance is included. Total cost: $106.9 million. COLOMBIA: Bank-$25 million. In seven

THAILAND: Bank-$4.75 million. An in- departments and in Bogota, a community-baseddustrial estate, with all necessary supporting health system will be established, and nutritionfacilities, will be established 35 kilometers east education provided for 1.8 million people, mostlyof Bangkok. The project is a part of a long-range among the poorest 30% of the population. Aprogram to establish such estates and export portion of the beneficiaries will also benefit fromprocessing zones away from congested Bangkok potable water supply systems, latrines, and fam-in a first phase, and develop added facilities at ily gardens: pregnant and nursing mothers andmore distant regional locations in a second small children in one department will increasephase. Total cost: $9.91 million. food consumption. The government's national

TURKEY: Bank-$95 million. The countrv's nutrition program will be strengthened, and itsimports of needed flat steel products will be food coupon system tested. Improved food pres-reduced by a project that is designed to help ervation and processing techniques will also befinance the second-stage expansion of the coun- developed. Total cost: $68.9 million.try's only producer of flat steel. Liquid steel THAILAND: IDA-$33.1 million. A popu-production capacity should increase by 500,000 lation project is designed to help the governmentmetric tons yearly through additions to raw ma- reach its demographic target for the Fourth Five-terials handling systems and scrap preparation Year Economic and Social Development Planfacilities. and through the construction of facili- (fiscal 1977-81) by assisting in the recruitmentties to reduce operating costs and consumption of more than 3 million new "acceptors," and byof energy. Total cost: S341.8 million. cutting maternal and infant mortality rates some

YEMEN ARAB REPUBLIC: IDA-$7 mil- 20%. The project includes training paramedicallion. The project aims at returning the Sana'a staff and village volunteers in health and familyTextile Mill to full capacity utilization and planning; purchasing equipment, vehicles, andprofitability through the reconditioning or re- materials; developing information, education,placement of machinery, the introduction of and communication activities; and carrying outan incentive scheme to increase productivity, research and evaluation studies. Norway is par-and management and operating assistance. Co- ticipating in the credit with a $3.1 million grant,financing is expected to be provided by the and additional financing is being provided by aidOPEC Special Fund ($1.5 million). Total cost: agencies in Australia ($3 million), Canada$25.5 million. ($6.3 million), and the US ($5.5 million). Total

cost: $68.6 million.

Nonproject

BANGLADESH: IDA-$75 million. Foreign Powerexchange will be provided for the purchase of BRAZIL: Bank-$130 million. The project isindustrial components, raw materials, chemicals, part of the program for the expansion of theand spare parts needed by selected high-priority power subtransmission and distribution systemsindustries to maintain production. In connection during the period 1978-81 of the three publicwith this credit, action programs were agreed electric power utilities in the south and southeastupon to expand the scope of efforts initiated of Brazil. Public service electricity will be madeunder earlier program credits, designed to in- available to about 62,000 new low-income con-


sumers, and about 48,000 new rural consumers INDONESIA: Bank-$109 million. Throughwill be connected. Total cost: $2,346.8 million. the construction of a third oil-fired thermal

COLOMBIA: Bank-$126 million. The proj- power unit at Semarang harbor in central Javaect-including construction of a 70-meter high and associated transmission lines/substations,earth dam on the Guatape River, inlet and dis- consultants' services, and studies, the country'scharge tunnels, and an underground power electric power authority will be able to meet thestation with four generating units, as well as increase in load forecast for Java by 1982/83.transmission facilities; consultant services; and Total cost: $161.53 million.a study on how to minimize power losses- JAMAICA: Bank-$20 million. A secondforms part of Interconexion Electrica S.A.'s power project, emphasizing electricity service for1978-82 expansion program, and will provide low-income rural and urban consumers, in-additional power capacity required in the early cludes construction of 141 kilometers of trans-1980s. Co-financing is being provided by the mission lines, expansion of existing stations, andIDB (S70 million). Total cost: $421.3 million. installation of new transformer capacity.Atrain-

COLOMBIA: Bank-$50 million. A 523- ing program for employees of the Jamaica Publickilometer long, single circuit 500 kV transmis- Service Company, Limited is included. Totalsion line between the central and Atlantic cost: $36.1 million.regions of the country, as well as two terminal LIBERIA: Bank-$10 million. The Liberiaand two intermediate substations will be built, Electricity Corporation will be assisted in ex-thus achieving the long-standing objective of panding its generating capacity, strengtheninginterconnecting Colombia's major power sys- its management, staffing, and financial position,tems. Consultant services for engineering, civil and increasing access to electric power for aboutworks, and supervision are included. Co-financ- 5,000 low-income families in the Monrovia area.ing is being provided by the KfW ($40 million). Co-financing will be provided by the Saudi FundTotal cost: $167.2 million. ($11 million), BADEA ($3.7 million), and the

FIJI: Bank-S15 million. This project, the EIB ($4.68 million). Total cost: $31.55 million.first stage of Fiji's hydroclectric development pro- MADAGASCAR: IDA - $33 million.gram, includes construction of a 60-meter high Through the construction of a concrete diversionembankment clam, a water conductor system, dam on the Vohitra River, and provision of anand an overground power station with an initial underground power house with ancillary facil-capacity of 40 MW, which can be extended to 80 ities, transmission lines, and technical assistance,MW later. Co-financing has been arranged with the growth in demand for electricity until 1992the EIB (joint financing, $14.3 million), the CDC in the Antananarivo area will be met. Co-financ-(parallel financing. S9.1 million), and the ADAB ing is expected to be provided by the Abu Dhabi(grant, 511.5 million). Total cost: $54 million. Fund (S5 million), BADEA ($10 million),

GUATEMALA: Bank-$72 million. CCCE (.S15.4 million), CIDA ($15.4 million),Through construction of a rockfill dam, a 25.6- the Kuwait Fund ($10 million), and the Saudikilometer power tunnel and a surface power- Fund ($12 million). Total cost: $116 million.house, and through provision of associated trans- MAURITIUS: Bank-S 15 million. By pro-mission, the hvdroelectric development of the viding additional power transmission and distri-Chixoy River will be carried out. Co-financing bution capacity to supply points, by increasingwill be provided by the IDB (S105 million), the the reliability of the system operations, andCABEI ($9 million), the FIV (S70 million), through the strengthening of the Central Elec-and private financial institutions (up to $23 mil- tricity Board's organization and operations, fore-lion). Total cost: $414.1 million. cast demand will be met, reliability of supply will

INDIA: IDA-$200 million. So that the be improved, and system losses cut. Total cost:country's western region might not be plagued $18.9 million.by power cuts that hinder utilization of existing PHILIPPINES: Bank-$60 million. Almostindustrial capacity and discourage installation of 900,000 families living in provincial towns andnew capacity (and also constrain agricultural rural areas will be provided with access to elec-output). three 200 MW generating units, to- tricity services, and job opportunities will begether with ancillary equipment and related created by a project supporting the Nationalworks, and about 800 circuit kilometers of asso- Electrification Administration's rural electrifica-ciated transmission lines will be built in Madhya tion program for 1979-80. Total cost: $160.5Pradesh state. Total cost: $439 million. million.

INDIA: Bank-$105 million. To help meet SIERRA LEONE: IDA-$8.2 million. Thethe forecast load growth in the Bombay area, a Sierra Leone Electricity Corporation will be500 MW power generating unit-the first single helped in its efforts to meet fully present demandunit installation of its size in the country - and projected requirements through 1980 and totogether with boiler, electrical and mechanical restore a measure of reliability in supplying theequipment, and associated works will be con- electric power needed to sustain the country'sstrueted. Total cost: $209.4 million. economy. Technical assistance will also be pro-

Telecommunications 85

vided. BADEA is providing a loan of $5 million be furnished, thus increasing the number ofto help meet project costs. Total cost: $15.2 economical and well-prepared projects in themillion. country. Total cost: $17.8 million.

SYRIAN ARAB REPUBLIC: Bank-S40 SENEGAL: IDA-$6.3 million. A three-yearmillion. The first stage of the country's I 0-year technical assistance project will help strengthennational rural electrification plan-designed to governmental organizations charged with stra-provide electricity service by 1987 to all villages tegic analysis, operational supervision, and form-with at least 100 inhabitants-will be financed. al financial control over the parapublic sector,Transmission and distribution lines will be in- resulting eventually in improved management, astalled and consulting services provided. USAID healthier financial situation, and better workingis providing co-financing in the amount of $34.2 relationships with government. Total cost: S8.2million. Total cost: $135.8 million. million.

THAILAND: Bank-$50 million. Through SOMALIA: IDA-$3 million. A three-yearthe construction of a rockfill dam and the expan- program of technical assistance for projectsion of an existing transmission system, the Elec- preparation studies, leading to high-priority in-tricity Generating Authority of Thailand will be vestment in the economy and an expansion ofbetter able to meet the growing demand for the capacity of Somali institutions to managepower in the southern region of the country and preinvestment work will be undertaken. Totalin other selected rural areas. Total cost: $144.6 cost: S3.8 million.million.

THAILAND: Bank-$25 million. Through Telecommunicationsconstruction of main primary lines and second-ary lines, the installation of distribution trans- COSTA RICA: Bank-$10.6 million.formers, meters. and streetlights, and the supply Through increases in exchange capacity, addi-of related equipment, electricity will reach an tions to the number of rural communities recciv-estimated 675,000 households and a population ing telephone service, the installation of eitherof 5 million spread out over more than 4,500 an earth satellite station or a submarine cable,villages in 20 provinces of the northeastern. the expansion of telex and mobile telephone serv-northern, central, eastern, and southern regions ice, and additional training, anticipated demandof the country. CIDA and the OPEC Special for local, long-distance, and international serviceFund are helping co-finance the project with in San Jose and other localities will be met. Theloans of $8 million and $7 million, respectively. IDB is providing co-financing in the amount ofTotal cost: SI 10 million. $12.2 million. Total cost: $100.3 million.

YEMEN. PEOPLE'S DEMOCRATIC RE- EGYPT. ARAB REPUBLIC OF: IDA-$53PUBLIC OF: IDA-$5 million. An impetus to million. Through the installation of aboutagricultural development in Wadi Hadramout 226,000 local exchange lines, the addition ofwill be provided by electrifying all irrigation 5,000 trunk exchange lines, and the expansion ofwater pumping in the Wadi through the erection telex services. support will be given the Arabof a 16 MW diesel generating plant and the con- Republic of Egypt Telecommunications Organi-struction of related transmission and distribution zation's 1978-80 program for rehabilitation of,networks. By 1983, power will also be provided and improvement to, the country's telecommuni-to major population centers, reaching some cations system. Total cost: $210 million.80,000 consumers and small industrial consum- EL SALVADOR: Bank-$23 million.ers. Discussions with possible co-financers are Through the installation of additional lines ofbeing held. Total cost: $28.3 million. local automatic telephone exchange equipment,

YUGOSLAVIA: Bank-S73 million. Three long-distance equipment, teleprinters. and long-concrete gravity dams and their associated power distance public call offices in areas currentlystations and transmission links will be built in without service, and the expansion of the tele-Bosnia-Herzcgovina as part of a long-range plan graph network, the National Telecommunica-to develop the Neretva River. Through the proj- tions Agency will be better able to meet unsatis-ect, the economic development of the republic fied demand, upgrade and expand its services,will be assisted, and the country's hydro re- and improve its financial management and prac-sources will be more fully exploited. Total cost: tices. Total cost: $51.6 million.$402.6 million. INDIA: Bank-$ 120 million. A priority com-

ponent of the Post and Telegraphs Telecommu-Technical Assistance nication Branch's investment program for 1978-

81 will be financed, thus significantly extendingECUADOR: Bank-$1 1 million. A three and the present network into rural areas. In addition,

a half-year program of assistance to the Na- the production facilities of the three major gov-tional Preinvestment Fund (which finances ernment-owned telecommunications equipmentproject preparation work carried out by the manufacturers will be upgraded and modernized.government) and other Ecuadorian agencies will Total cost: $818.5 million.


NEPAL: IDA-$14.5 million. Through a a highway maintenance program in Parana statethird telecommunications project, about 70% supported, weighing stations installed, and re-of the demand for local telephone service will be search studies financed. Total cost: $312 million.met; radio facilities will be provided to sub- BURUNDI: IDA-$14 million. The govern-scribers at 100 isolated locations; telex facilities ment will be assisted in financing the construc-will be expanded; and technical assistance furn- tion of a major road (from Bujumbura to Ru-ished. The United Kingdom's ODM will provide gombo), road improvement and bettermentco-financing in the amount of $3 million. Total works, and the continuation of its road main-cost: $25.6 million. tenance program. Co-financing is being provided

by BADEA ($6 million), the UNDP ($900,000),and the Federal Republic of Germany

Tourism ($800,000). Total cost: $24 million.

MEXICO: Bank-$50 million. Some 32,000 CAMEROON: Bank-S 16.5 million.permanent jobs will be created directly (and Through technical assistance to the Ministry of

* Transport and through the reconstruction of theanother 33,000U indirectly) as a result Of a pro]- Gar. -ect designed to help the Fondo Nacional de Garoua-Figuil road (95 kilometers) to two-laneFomento al Turismo finance the construction of paved standards, transport costs on the south-hotel accommodations and related tourism facil- north Transcameroonian rail/road route will behtiel accommodaionis and re.lat .Ttou co reduced, and overall transport planning and

$212 million. coordination improved. The project forms animportant part of the overall development effortfor northern Cameroon, as the road serves agri-

Transportation cultural, industrial, and administrative centers.Total cost: $21.6 million.

BANGLADESH: IDA-$5 million. Equip- CAMEROON: Bank-$4.6 million; IDA-ment, materials, and spare parts for the Bangla- $6.5 million. Feeder roads for four high-prioritydesh Inland Water Transport Authority and the rural development and livestock projects (bene-Bangladesh Inland Water Transport Corpora- fiting some 100,000 low-income farm families)tion will be financed, and technical assistance will be provided. Technical assistance is in-will be provided. Total cost: $8.5 million. cluded. Total cost: $17.1 million.

BENIN: IDA-$1I million. Physical facil- CYPRUS: Bank-$8.5 million. Port facilitiesities at Cotonou port will be expanded, produc- at Limassol and Larnaca will be expanded totivity there increased through improvements in relieve congestion and to accommodate futureport and cargo handling and training, and the traffic growth up to 1983. The project also pro-government will be aided in introducing an ade- vides for technical assistance to the Cyprus Portquate tariff structure for the transit of goods- Authority. Total cost: $29.47 million.a major economic activity in Benin. Joint and EGYPT, ARAB REPUBLIC OF: Bank -

parallel financing, totaling $33.08 million, from $100 million. By 1980, ships drawing up to 16.1seven co-financers, will help meet project costs. meters (or about 120,000 dwt laden and 350,000Total cost: S46.09 million. tons in ballast) will be able to use the Suez Canal

BENIN: IDA-$10 million. State-owned as a result of a project designed to expand thetrucking companies and local truck owners and Canal and improve its facilities. Eight co-financ-operators, as well as farmers living in the area of ers have approved loans to help meet the project'sinfluence of the project roads, will benefit from costs. Total cost: $1,003 million.a project designed to eliminate the backlog of HAITI: IDA-$15 million. Through the re-periodic maintenance on bituminous and laterite construction or upgrading of six road sections,roads, and improve the country's ongoing routine the reconstruction of two important bridges, andhighway maintenance efforts. Total costs: S21.3 the building of three coastal shipping port facil-million. ities, a better balance between road transport and

BOLIVIA: Bank-$25 million. By carrying coastal shipping will be achieved. In addition,out required road maintenance in three districts; the project will help overcome the isolation ofby providing equipment, vehicles, and spare outlying areas, and help foster regional activity.parts; through a technical assistance program in Total cost: $20.45 million.support of the National Highway Service; and IVORY COAST: Bank-$29 million. Athrough the preparation of a countrywide main- feeder road and highway maintenance projecttenance program, maintenance of the country's will provide improved transport services for theroads would be improved. Total cost: $36.3 rural population, and will reduce transport costs.million. Regional workshops will be built, equipment

BRAZIL: Bank-$114 million. About 1,500 bought. and technical assistance provided. Totalkilometers of federal highways will be rehabili- cost: $63.2 million.tated, engineering for the rehabilitation of about IVORY COAST: Bank-$23 million. The3,000 additional kilometers will be provided for, priority items of the 1978-79 portion of Regie

Transportation 87

des Chemins de Fer Abidjan-Niger's 1977-82 personnel of the Ministry of Public Works willinvestment plan will be covered. The items con- be strengthened, thus enabling it better to carrysist primarily of track realignment and renewal out its Four-Year Maintenance Program, cover-of track material in Ivory Coast, track improve- ing the country's entire highway network (9,200ment in Upper Volta, purchase of locomotives kilometers). Total cost: $12.91 million.and provision of maintenance equipment, train- PAPUA NEW GUINEA: Bank-$3.5 mil-ing facilities, and consultant's services. CIDA is lion. Container handling facilities will be built atproviding co-financing in the amount of $29.2 Port Moresby harbor to reduce ship waiting timemillion. The loan is supplemented by a $5.2 and lower cargo handling costs; a 30-metermillion credit to Upper Volta. Total cost: $66.2 coastal berth at Samarai, located on a smallmillion. island off the southern Papua coast, will be built;

KOREA, REPUBLIC OF: Bank-$120 mil- and training will be made available to the stafflion. A sixth railway project forms part of of the Papua New Guinea Harbours Board. Co-Korean National Railroad's 1977-81 investment financing is being provided by the Kuwait Fund.plan which aims at providing it with the capacity Total cost: $10.5 million.needed to handle increasing traffic volumes and PARAGUAY: Bank-$33 million. A fifthto reduce operating and maintenance costs. Total highways project will help upgrade 98 kilometerscost: $406.9 million. of high-priority road between Coronel Oviedo

LIBERIA: Bank-$13.8 million. Two main and San Estanislao, will help strengthen and ex-roads, linking Monrovia to the central and south- pand the Ministry of Public Works and Com-eastern regions of the country, will be recon- munications' abilitv to maintain existing roads,structed and improved; technical assistance on and will help continue the strengthening ofroad maintenance will be supplied; and a feas- transport planning and coordination. Co-financ-ibility study for one main road and engineering ing is being provided by the Bank of Nova Scotiaworks on two other main roads provided for. ($5 million). Total cost: $48.1 million.Co-financing from the Kuwait Fund ($7.4 RWANDA: IDA-$15 million. A fourthmillion) will help meet project costs. Total cost: highway project, which will help lessen vehicle$28.8 million. operating costs and prevent the further dete-

MALAWI: IDA-$10.5 million. More than rioration of the main road network, includes the100 kilometers of road will either be constructed improvement, rehabilitation, and upgrading ofor strengthened on the Kasungu-Jenda road and about 1.500 kilometers of gravel roads; a four-the Zomba-Lilongwe road and consulting serv- year maintenance program on about 3,500 kilo-ices provided, thus assisting the government's meters of earth and gravel roads; and thegeneral strategy of developing the northern half strengthening (through training and purchase ofof the country, where several rural and urban needed material) of the country's Road Branch.development projects have been initiated or The Federal Republic of Germany, Belgium, theplanned. The OPEC Special Fund is lending UNDP, and the WFP are included as co-financ-$1.8 million to help meet project costs. Total ers. Total cost: $23.7 million.cost: $14.26 million. SENEGAL: Bank-$ 11 million. A large pro-

MALAYSIA: Bank-$13 million. The ports gram of action aimed at improving operationalof Kota Kinabalu, Sandakan, and Tawau will be and financial performance, including measuresprovided with cargo handling equipment to meet to strengthen the national railwav authority'sfuture traffic growth and to replace old equip- organization. management, and staff trainingment; Tawau port will be provided additional will be carried out. Track will be renewed,berths and ancillary facilities so that its needs to maintenance equipment and spare parts pur-1990 might be met; and technical assistance will chased, a marshaling yard extended and rehabil-be furnished the Sabah Ports Authority. Total itated. a training program initiated, and consult-cost: $26 million. ing services provided. Total cost: $11.81 million.

NEPAL: IDA-$17 million. A second high- SUDAN: IDA-$22 million. Through anway project calls for the construction of a increase in physical capacity, in operational pro-feeder road connecting the Dang valley to the ductivity, and management capability, the portEast-West highway in the far-western region, of Port Sudan will be modernized and improvedupgrading a mountainous section of the main so that congestion might be relieved and through-road between Kathmandu and the Indian border, put increased. The ODM (UK), the KfW, andsupport for the government's Five-Year Road the Kuwait Fund are providing co-financing ofMaintenance Program, consultants' services, $9.6 million, $3.5 million, and $500,000, respec-and the training of mechanics. Total cost: $20 tively. Total cost: $50.7 million.million. SYRIAN ARAB REPUBLIC: Bank-$58

PANAMA: Bank-$12 million. Through the million. Sections of highways, totaling moreacquisition of new maintenance equipment, than 350 kilometers, will be improved or newlyspare parts, and the provision of consulting serv- constructed, and consultant services and technicalices, the maintenance organization, methods, and assistance provided in this third highway loan


assisting the country's highway development railways and its competitive position will beprogram which emphasizes the completion of the improved. The project consists of the 1978-80main transportation axes, maintenance and im- slice of the Yugoslav Railways' 1976-80 Invest-provement of existing roads, and the stimulation ment Plan. Total cost: $2,000 million.of further development of what are, potentially, YUGOSLAVIA: Bank-$80 million. Bottle-the most productive sectors in the economy. necks will be eliminated and traffic flows on theTotal cost: $113.6 million. E94 Trans-Yugoslav Highway will be facilitated

TANZANIA: IDA-$15 million. Public sec- as a result of a ninth highways project that in-tor transport companies will be made more cludes 86 kilometers of construction and pro-efficient, adequate training opportunities procurement of maintenance equipment. Total cost:vided, and spare parts for the trucking industry $257 million.made available in this project, designed to over- ZAMBIA: Bank-$11.25 million; IDA-come road transport bottlenecks that have put $11.25 million. Zambia's road maintenancesevere strains on the country's agricultural eco- programs will be improved, and the institutionsnomy. Total cost: $17.3 million. responsible for maintenance will be strength-

THAILAND: Bank-$1 10 million. Eleven ened through the provision of road maintenancesections of provincial roads, totaling about 670 and workshop equipment, technical assistance,kilometers, will be constructed and improved, an and consultant services. Total cost: $26.7 million.eight-year program of maintenance of nationaland provincial roads will be implemented, and Urbthe country's provincial road system will be an Developmentupgraded and expanded through a program of BOLIVIA: Bank-$17 million. The first Bank-technical assistance, engineering studies, and assisted urban development project in the coun-consultants' services in this sixth highway proj- try consists of: a program of sites and servicesect. Total cost: $206.69 million. and urban upgrading, which would provide and

TOGO: IDA-$5.8 million. Support will be improve essential urban services in low-incomegiven to a four-year program for the construction areas of La Paz; construction of five retail foodand improvement of about 1,000 kilometers of markets; credit to artisans and small-scalefeeder roads, for technical assistance to establish enterprises to provide jobs and create employ-a Feeder Roads Unit within the Department of ment; and technical assistance. Some 10,000Rural Works, and for a study of a follow-up families will benefit. Total cost: $22.5 million.feeder road program. Total cost: $8.3 million. BOTSWANA: Bank-$8 million. About

TUNISIA: Bank-$32 million. About 1,000 38,000 people will benefit from the residentialkilometers of rural roads will be improved, and component of a second urban project designedcomplementary agricultural investments-credit, to increase the participation of the poor in theequipment purchases and improvements to ex- economic growth of Francistown and Selebitension services-provided in this project Phikwe in the northeast of the country. Socialdesigned to make available assured and less and physical infrastructure will be provided, andexpensive transport of essential agricultural about 1,250 jobs will be created or upgraded.inputs and crops, and to help raise farm incomes Total cost: $11.3 million.and increase employment. Total cost: $93.6 BRAZIL: Bank-$88 million. Urban trans-million. port services in five metropolitan areas-Belo

UPPER VOLTA: IDA-$5.2 million. For Horizonte, Curitiba, Porto Alegre, Recife, anddetails, see the description of the $23 million Salvador-will be improved, and special em-Bank loan to Ivory Coast. phasis given to the provision of public transport

YEMEN ARAB REPUBLIC: IDA-$11.5 to the urban poor. Components include trafficmillion. By assisting a three-year road mainte- engineering, introduction of bus lanes, road con-nance program, by constructing vehicle weight struction and widening, construction of bus ter-control stations, by preparing a highway master minals, paving of bus routes, and technical assis-plan, and through technical assistance to the tance. Total cost: $248.9 million.country's Highway Authority, vehicle operating COLOMBIA: Bank-$24.8 million. Throughcosts will be reduced, and a framework for im- construction of community development centers,proved management and rational investment for extension of primary education, health, and nu-future highways will be provided. Co-financing trition services, regularization of land tenure,is expected to be provided from other external home improvement credit, sites and services,sources. Total cost: $55.3 million. and water supply and sewerage facilities, some

YUGOSLAVIA: Bank-S100 million. 550,000 people, mostly in the poorest 30% ofThrough the overhaul of track, station and the population, and living in 23 selected towns,track reconstruction, electrification, moderniza- will be provided comprehensive assistance. Totaltion of signaling and telecommunications equip- cost: $62 million.ment, purchase of traction and rolling stock, and COSTA RICA: Bank-$16.5 million. Travelother investments, the efficiency of the country's conditions in San Jose will be improved, espe-

Water Supply and Sewerage 89

cially for users of public transport, through the from a second urban development project thatupgrading of existing transport infrastructure. includes squatter upgrading and surveyed plotsMaintenance equipment will also be provided, as (to be provided with essential infrastructure,will training and technical assistance. Total cost: community facilities, and credit for home im-$31.4 million. provement) and a program of assistance to

EGYPT, ARAB REPUBLIC OF: IDA-$14 small-scale industries. Total cost: $29.3 million.million. Through comprehensive upgrading of THAILAND: Bank-$8.6 million. The livingfour settlements, sites and services on two sites, conditions of about 35,000 of Bangkok's low-a small business assistance and manpower train- income residents will be improved by providinging program, improvements in solid waste col- new housing for about 3,000 families, by improv-lection and disposal, urgent repairs to water ing the sanitation, health conditions, and accesssupply and sewerage systems, and technical to public services for about 3,500 families inassistance, some 120,000 poor people in Cairo, existing slums, and by increasing employmentAlexandria, and Assiut will experience improved opportunities in the project areas. Total cost:living conditions and an increase in employment $17.2 million.opportunities. Total cost: $21 million. UPPER VOLTA: IDA-$8.2 million. Living

INDIA: IDA-$87 million. Capabilities of conditions will be improved for more thanthe administrative authorities in the Calcutta 10,500 households (86,000 people) in Ouaga-Metropolitan District will be expanded and up- dougou and Bobo-Dioulasso as a result of angraded; about 1.8 million poor residents will urban development project that will providebenefit from fringe development and slum im- essential infrastructure, regularization of occu-provement schemes; and some 45,000 people will pancy rights, and the supply of credit for hous-have improved housing. About 60,000 children ing construction or improvement. A waterwill have access to primary schools, and some supply component in three additional squatter175,000 poor residents will receive health care settlements in Ouagadougou will benefit an esti-from a pilot program. The Netherlands is pro- mated additional 20,000 people. Total cost:viding co-financing in the amount of $1.8 mil- $9.1 million.lion. Total cost: $183.9 million.

KENYA: Bank-$25 million; IDA-$25 mil- Water Supply and Seweragelion. In Kenya's three largest cities, Kisumu,Mombasa. and Nairobi, more than 30,000 low- ALGERIA: Bank-$82 million. A project,income households will benefit directly from an comprising primarily of the construction of com-urban development project that provides for the bined sewer interceptors, the first stage of aconstruction of physical infrastructure and com- sewage treatment plant, and technical assistance,munity facilities to serve existing unserviced will help abate water pollution and associatedsquatter settlements, preparation of new housing health hazards in Algiers, will permit redevelop-areas with serviced plots, credit, and employment ment of affected areas near the El Harrach River,opportunities. Total cost: $69.4 million. and by permitting the reuse of treated sewage,

MEXICO: Bank-$16.5 million. Some 75% will reduce investments in water supply. Totalof the low-cost shelter needs of the Lazaro Car- cost: $154.21 million.denas conurbation through 1981 will be met. BRAZIL: Bank-$I 10 million. By providingInstitutional arrangements for urban develop- sewage collection services to 3.5 million peoplement programs will be strengthened, and em- and sewage treatment facilities for 5.5 millionployment created by assisting small enterprises people and for 6.1 m`/sec of industrial wastes,through credit and technical assistance programs. the health and environmental conditions for theA replicable institutional model will be created. 10.6 million population of greater Sao Paulo willand additional urban projects in the country be improved. Total cost: $1,239.6 million.prepared. Total cost: $36.1 million. COLOMBIA: Bank-$13.8 million. About

MOROCCO: Bank-$ 18 million. The living 250,000 residents of Cali and nearby Yumbo willconditions and productive capacities of 11,000 benefit directly from a second water supply andurban low-income households will be improved sewerage project that aims to improve sanitaryas a result of a project in Rabat that is introduc- conditions by moving the discharge of raw sew-ing solutions to some of the more difficult prob- age downstream from the city's main intake oflems facing the urban sector: inadequate urban water, and by separating domestic sewage fromplanning, financing, and management. The proj- stormwater run-off. A water distribution networkect includes squatter upgrading, a sites and for low-income households will be constructed,services scheme, an employment generation pro- and household connections installed. Total cost:gram, community services equipment, and tech- $42.9 million.nical assistance. Total cost: $37.62 million. EGYPT, ARAB REPUBLIC OF: IDA-$2

TANZANIA: IDA-$12 million. About 26% million. The foreign exchange costs of a feas-of the country's total urban population-more ibility study and related technical assistance tothan 315,000 low-income people-will benefit help identify and prepare a regional water supply


project, focusing on rural areas and secondary the Casablanca-Mohammedia region that willcities, will be financed. Appropriate technical reduce health hazards and risks to the fisheriesstandards, financial policies, and institutional industry. Total cost: $2.46 million.arrangements in the water supply sector will also NICARAGUA: Bank-$ 10.1 million. Thebe established. Total cost: $2.3 million. potable water requirements of the population

HAITI: IDA-$6.6 million. Through the of Managua will be met up to 1985 through therehabilitation and expansion of the water supply expansion of water supply production and thesystems in seven provincial towns, about 155,000 construction of transmission and distributionpeople-or 90% of the towns' population-will facilities. Technical assistance is included. Totalbenefit. Substantial technical assistance will be cost: $13.8 million.provided the new and untried institution the NICARAGUA: Bank-$3 million. Aboutproject aims to strengthen, Service National 175,000 people living in about 550 dispersed vil-d'Eau Potable. Total cost: $8 million. lages will benefit from this first Bank-assisted

IVORY COAST: Bank-533 million. A project designed to provide basic sanitation andsecond project in support of Abidjan's sewerage health-related services exclusively to the lowest-and drainage system and the institutions respon- income population. Project components includesibile for the system includes the supply and construction of low-cost water supply systems,laying of primary sewers and drains, sewer and rehabilitation and improvement of latrines,drainage networks. construction and equipping vaccination against disease, improvement ofof a pumping station, road surfacing, and the sanitary conditions, and technical assistance.services of consultants. Total cost: S53.1 million. Beneficiaries are paying at least 15% of project

IVORY COAST: Bank-$16 million. In sup- costs and all operating and maintenance ex-port of the government's efforts to improve living penses. Total cost: $6.3 million.conditions of people residing in small towns, PARAGUAY: Bank-$6 million. Somesafe water will be provided to about 400,000 63,000 persons living in 42 villages will benefitadditional people as a result of a project to im- from the construction of water supply systems,prove and extend existing water supply systems and 32,000 people will be served through the-and to construct new ones-in secondary construction of individual waste disposal solu-centers of the country. Technical assistance is tions. Technical assistance to the National En-included. Total cost: $23 million. vironmental Sanitation Service is included. Total

JORDAN: IDA-S14 million. About 16,000 cost: $1I million.additional low-income people will be provided PORTUGAL: Bank-$40 million. As manyimproved water service, and improvements to as 2.6 million people, including some 300,000sewerage facilities will benefit a substantial urban poor, will benefit from a water supply proj-number of low-income users as a result of a third ect serving the Lisbon region which aims at in-water supply and sewerage project in Amman creasing the production of potable water andthat includes construction of water and sewerage improving the water distribution system there; inmains, provision of water meters, and training. addition. the project will assist the governmentTotal cost: $33.9 million. in water sector reorganization and in design and

KENYA: Bank-$30 million. The population planning capability. Total cost: $153.2 million.of Nairobi served with treated water will be in- SOMALIA: IDA-$6 million. Mogadishu'screased by about 80% by 1981 as a result of a water supply capacity will be increased (enablingsecond project designed to improve the existing water supply to be extended to an additionalwater supply system and expand distribution to 29,000 urban poor) through construction, pro-new areas. Training and technical assistance will curement of equipment, and tczhnical assistance,be provided, and treatment and transmission while the preparation of a larger second projectfacilities, trunk mains, pumping stations, and will be assisted through water resource investi-distribution systems built. Loans from the OPEC gation. Total cost: $7.7 million.Special Fund ($5.5 million) and the Saudi Fund YEMEN, PEOPLE'S DEMOCRATIC RE-($25 million) will help meet project costs. Total PUBLIC OF: IDA-$1.2 million. Water supplvcost: $78 million. master plans for Aden and Mukalla will be

MOROCCO: Bank-$1.5 million. Assistance prepared, potential water resources in otherin helping develop the design and planning cri- populated areas assessed, and the first construc-teria for upgrading urban sewer systems and in tion phase of projects for the improvement andstrengthening and reorganizing the institutions expansion of water supply services in the areasresponsible will be made available. Among im- under consideration elaborated. Technical assist-mediate benefits will be a sewerage proposal for ance will be furnished. Total cost: $1.5 million.

Technical Assistance

Technical Assistance These included a $2 million mtultisectoral pro-gram for project preparation in Sri [Lanka.

The provision of technical assistance. an designed to prepare sound investmcnit projectsintegral part of the Bank's services to its de- and to strcngthen the country's capacity toveloping member countries, has been expanding identify and prepare other such projects invigorously. Consultations take place between the futurc: a $2.2 million regional project inBank staff and borrowers during project prepara- Africa to support the Organisation pour la Misction and appraisal, and during country or sector en Valeur du Fleuve S6negal: a $220.000 railwayreviews. Aside from this steady flow of technical management study in Ghana: a $400,000 studyinformation, the Bank assists its borrowers with of the agricultural sector in Algeria; and afeasibility studies, engineering, resource surveys, $400,000 project to provide assistance to thein helping build up institutions, in training, and Korean Institute of Electronic Technology andthe like. to other similar agencies in Korea.

Technical assistance was the exclusive purpose In addition, the Bank and the UNDP joinedof one loan and two credits, for a total of S20.3 in contributing to the cost of mediation servicesmillion during the year. as compared with six for the East African Community. These servicesoperations, for a total of $16.9 million, in fiscal are aimed at helping Kenya. Tanzania, and1977. In addition, technical assistance compo- Uganda reach agreement on the division ofnents were included in 151 lending operations, the assets and liabilities of the corporationsfor a total of $230 million, compared with 162 and institutions previously operated hy theoperations, for a total of $189 million, in the pre- Community.vious year. During fiscal 1978, $6.4 million of A number of UNDP-financed. Bank-executedfinancing was provided by the Bank's Project projects provide economic planning assistance.Preparation Facility. The facility make tempo- Typically, they call for small teams of planningrary advances t'or studies and other forms of advisers, supporting consultant services, andtechnical supportm the borrower repays the ad- training programs for local counterpart staff;vances by refinancing them through a Bank loan in some cases, these programs have been carriedor an IDA credit for the project concerned as out with the cooperation of the Bank's Economicsoon as it becomes effective. Other forms of Development Institute.assistance are provided on a reimbursable basis, Ongoing planning advisory projects in Korea.or under equivalent compensatory arrangements, Liberia, Philippines. Sudan, and Zaire were ex-to oil-exporting countries that do not borrow tended to fiscal 1978 at the request of the hostfrom the Bank. In fiscal 1978. this kind of assist- governments; work on a project in Uganda wasance in the amount of $33 million was directed contintied: one of two projects in Swazilandto four countries. was completed: and advisers were recruited for

For many years, the Bank has served as a project in Malaysia.executing agency for preinvestment and techni- The Bank assisted the UNDP in assessing thecal assistance projects financed by the United relevance and effectiveness of UNDP technicalNations Development Programme (UNDP). cooperation for the establishment of self-reliantUnlike other executing agencies, however, it has central planning agencies and in suggestinghandled the procedural, administrative, and possible improvements. The assessment wasother aspects of its role as executing agency on based on 12 country case studies: Bank staffa project-by-project basis. During the year, these participated in six of the studies.arrangements were standardized in a Bank/ The design of these planning projects reflectsUNDP relationship agreement. a growing appreciation of the need for better

In fiscal 1978, the Bank agreed to serve as distribution of the benefits of development, bothexecuting agency for 23 new projects, for among social groups and geographically; forwhich the UNDP contributed $11.9 million. greater consistency between annual resource

92 Technical Assistance

allocations and long-term development objec- country. Six of the 10 regional courses were heldtives; and for shortening the time required to with institutions with which EDI was collabo-prepare sound investment projects. rating for the first time. In East Africa, the East

Of great significance to the developing coun- African Management Institute and EDI orga-tries is the fact that Bank-executed, UNDP- nized a Transport Project Planning, Evaluation,financed projects have an operational focus that and Management Course in Arusha, Tanzaniavery often leads to projects suitable for Bank for officials from Eastern and Southern Africa.financing, producing substantial investment fol- The International Livestock Center for Africalow-up. Studies completed, or under way, led to and EDI co-sponsored a Livestock Developmentan estimated $555 million of Bank and IDA Projects Course in Nairobi for officials fromproject financing in calendar 1977. English-speaking African countries. As part of

a three-year training program for South andEconomic Development Institute East Asia, the University of the Philippines at

During the past year, the Economic Develop- Los Banos, the Southeast Asian Regional Centerment Institute (EDI) continued its program of for Graduate Study and Research in Agriculture,conducting courses in Washington and assisting and EDI conducted courses on agro-industrialwith national and regional courses in developing projects and rural development projects at thecountries. University. For the second year of a training

Eleven courses were held in Washington, in- program of agro-industrial projects courses forcluding two new ones, one on power projects Latin America and the Caribbean, the Inter-and the other on project management. In addi- American Development Bank and EDI sup-tion. the national economic management course ported courses in Colombia, with the Banco dewas given, for the first time, in French. EDI also la Republica, and in Barbados, with the Carib-began to experiment with shorter seminars. It bean Development Bank.gave a two-week seminar on teaching methods Of the 18 national courses that EDI supportedand curriculum design, and hosted a seminar for during the past year, three were held for therepresentatives of Ibero-American training in- first time: an industrial projects course in Iraqstitutions in which ideas and experiences were with the Ministry of Planning, a transport proj-exchanged on the objectives and functions of ects course with the Transport Planning Au-training in development strategy. The United thority of the (Egyptian) Ministry of Transport,Nations Institute for Training and Research and and a seminar on development policy analysisEDI conducted a seminar on economic develop- and decision making in India with the Adminis-ment and its international setting for members trative Staff College (Hyderabad) and theof United Nations diplomatic delegations. Training Division of the Government of India's

As in recent years, most of the training activi- Department of Personnel and Administrativeties with which EDI was associated took place Reforms.outside Washington. EDI supported 28 courses In December 1977, the Bank's Executive Di-overseas, and, as a result of its policy of encour- rectors endorsed a five-year program for theaging the development of local training institu- period, fiscal 1979-83 for EDI that included ations and of contributing to them only resources further substantial expansion overseas and aand skills not available locally, EDI provided reorientation of EDI's activities to give moreless than 25% of the teaching in six of those emphasis to the provision of advice and teachingcourses. materials to institutions in developing countries.

In fiscal 1978, EDI co-sponsored or assisted EDI will continue to add to its curriculum and10 regional courses open to officials from coun- extend it to cover more fully the preparationtries sharing a common linguistic, cultural, or and management of projects, as well as theirgeographic background. Each of the remaining appraisal. It expects, also, to schedule more short18 courses was open to nationals of a single seminars on particular subjects as the need arises.

Other Activities

Aid Coordination IDA helped to finance jointly or in parallel withother national or multilateral agencies. Projects

At the request of both donor and recipient were co-financed with the United Nationsgovernments, the Bank has continued to take Development Programme, the World Food Pro-the lead in organizing various aid coordination gramme, the Arab Bank for Economic Develop-mechanisms for a number of developing coun- ment in Africa (BADEA), the Arab Fund fortries that receive assistance from bilateral and Economic and Social Development. the Islamicmultilateral sources. Development Bank, and various regional financ-

The Caribbean Group for Cooperation in Eco- ing institutions (the African Development Banknomic Development was organized, and met for and Fund, the Caribbean Development Bank,the first time in fiscal 1978 under the chairman- the Inter-American Development Bank). as wellship of the Bank. The Caribbean Development as with aid agencies in Abu Dhabi, Australia,Bank, the Inter-American Development Bank, Be]gium, Canada, France, Germany, Japan,and the International Monetary Fund were asso- Kuwait, the Netherlands, Norway, Saudi Arabia,ciated with the Bank in convening the meeting. Sweden, the United Kingdom, the United States,

The main objective of the meeting was to start Venezuela. and the European Economic Com-a process through which external donors could munity. For the first time, projects were co-increase, in a coordinated way, their financial financed with the OPEC Special Fund and theand technical assistance to the Caribbean area International Fund for Agricultural Develop-in support of appropriate and long-term eco- ment (IFAD). The Bank also continued itsnomic programs undertaken by the countries of efforts to stimulate private investment in Bank-the region. In June 1978, 31 governments and 16 sponsored projects. and during the year, ainternational agencies met at the Bank; from growing number of projects were co-financed bythat meeting, a new Caribbean facility-called private commercial banks.the Caribbean Development Facility-was set up On a regional basis. the Bank continued itsto supply assistance to Caribbean countries. Ten active participation in the country reviews spon-donor countries and international agencies indi- sored by the Permanent Executive Committee ofcated that they would make available about $112 the Inter-American Economic and Social Coun-million to meet the needs of Caribbean countries cil, and maintained close working relations withfor this type of assistance during the year begin- regional financing institutions (the African De-ning July 1, 1978. Additional amounts are ex- velopment Bank, the Asian Development Bank,pected to be made available as countries com- and the Inter-American Development Bank) andplete their internal decision processes and, in the Commission of the European Communities,particular, as fuller consideration is given to the which helped assure coordination of develop-requirements of some countries that were not ment assistance activities between them and theconsidered in detail at the meeting. Bank.

During the year, formal meetings of 10 of the In December 1977, the Bank hosted a meetingother aid coordinating groups sponsored by the in London of donor agencies active in the pop-Bank were held. These were the groups for ulation sector to discuss ways of improvingBangladesh, Bolivia, Burma, Egypt, India, co-financing and other areas of coordination.Nepal, Pakistan, Philippines, Sri Lanka, and Representatives from eight donor countries, theZambia. The Bank also participated in one meet- International Planned Parenthood Federation,ing of the Inter-Governmental Group for In- the Population Council, and the United Nationsdonesia, chaired by the Netherlands. Fund for Population Activities attended the

An indication of the close cooperation among meeting. The participants agreed that closerthe various development assistance agencies is collaboration between donors is best achievedthe large number of projects that the Bank and within the context of individual countries. They

94 Other Activities

also emphasized the need for intersectoral co- The Bank entered into an agreement with theordination, as the boundaries of "population International Fund for Agricultural Develop-financing" were now broader than in the past. ment (IFAD), the newest UtN specialized

Formal consultations were held during the agency, established following the 1974 Worldyear with France's Ministry of Cooperation and Food Conference to promote food production.the Caisse Centrale de Coop6ration Economique, The Agreement sets out the principles under-with the Ministry of Economic Cooperation of lying the cooperation between the Bank andthe Federal Republic of Germany and the IFAD, and establishes a framework withinKreditanstalt fir Wiederaufbau, the Japanese which working arrangements may be agreed.aid agencies (the Overseas Economic Coopera- IFAD is required, by its Charter, to rely on thetion Fund of Japan and the Export-Import Bank services of other agencies for project appraisalof Japan), and the United Kingdom's Ministry and loan administration. The Bank can provideof Overseas Development to review questions of such services, either through co-financing, or bycommon interest and to discuss country and appraising and subsequently administering proj-project matters as well as possibilities for co- ects to be financed exclusively by IFAD. Bankfinancing. Regular contacts were also main- staff are now working with IFAD to identifytained with the Abu Dhabi Fund for Arab projects of potential interest to IFAD. Co-financ-Economic Development, the Arab Fund for ing with IFAD has been alrcadv arranged forEconomic and Social Development, BADEA, two such projects: an irrigation scheme inthe Kuwait FLund for Arab Economic Develop- Guyana, and a rural development project inment, the Islamic Development Bank, the Saudi Tanzania.Fund for Development. and the Venezuelan In- The Bank became co-sponsor of a long-rangevestment Fund, as well as with financing agencies Special Programme for Research and Trainingin the OECD countries. to determine possibilities in Tropical Diseases initiated by the Worldfor co-financing of specific projects. In addition, Health Organization (WHO) and the Uniteddiscussions took place with representatives of Nations Development Programme (UNDP),the newty organized IFAD to explore avenues and also agreed to serve as fiscal agent for thefor cooperation between the Bank and that or- Special Programme. The Programme has twoganization. Details of the agreement reached objectives: to develop and apply effective andbetween the Bank and IFAD may be found in low-cost methods to control six major tropicalthe next section. "Interagency Cooperation," of diseases (filariasis, leishmaniasis, leprosy, ma-this A nnial Report. laria. schistosomiasis, and trypanosomiasis); and

to train scientists and technicians and toInteragency Cooperation ~~strengthen research institutions in the countries

Interagency Cooperation affected by the diseases, thus increasing theThree new cooperative undertakings were capability of those countries to deal with tropical

added during fiscal 1978 to the network of rela- disease problems. Although the Programme istionships between the Bank and other institutions global in concept and plan, its initial major focusconcerningassistance to the developingcountries. will be in Africa.

Co-financing"' of Bank- and IDA-assisted Projects, by Region(USS iillionis. Fiscal years.)

1975(-) 197602) 1977(2) 1978 :2

Number of AmoLInt Number of Amilouniit Nuimber of Amouirnt NLmllber of Amnouintprojects co-financed pr-ojects co-financed projects co-finattced projects co-filunced

Eastern Africa 12 S 292.5 13 $ 147.7 20 $ 325.1 14 $ 214.4Western Africa II 53.5 16 407.2 12 299.2 17 184.8East Asia and Pacific 4 150.1 10 392.9 5 204.1 10 220.0South Asia 3 138.8 5 65.7 7 176.8 5 144.1EuLrope, Middle East,

and North Africa 14 396.5 14 718.3 13 483.1 20 1.239.5Latin America and

the Caribbean 7 1.438.7 5 474.6 12 621.3 i5 772.9

Total 51 $2,470.1 63 $2.206.4 69 $2,109.6 81 $2,778.7

As a % ofLending Program 27 42 29 33 30 30 34 33

0) Includes co-financing from official anid private soLurces, as well as suippliers' cr edits.(-') Figtires have been compiled fr-om World Bank Appraisal and President's Reports at the time of Board approval.

Initeragency Cooperationz 95

An agreement was signed in Brussels in May pleted during the year. and the Program also1978 between IDA and the European Commun- assisted in the preparation of projects to heitics and their nine mcmber states Llnder which financed by the UNDP and by bilateral donors.IDA would administer a Special Action Account, The Bank-United Nations Industrial Develop-totaling $385 million, for the Communities and ment Organization (UNIDO) Cooperative Pro-their members. The agreement followed a deci- gram carried out five project identification orsion of the Communities at the conclusion of the preparation missions-two looking to the devel-CIEC (North-South Conference) in June 1977 opment of small industries-in as many coun-to provide additional quick-disbursing assistance tries. These initiatives reflect the approach thatto the poorest developing countries with acute the Bank adopted in fiscal 1977, designed to pro-foreign exchange needs. vide increased employment opportunities by

The centerpiece of ongoing Bank relations encouraging productive activities, includingwith UN agencies is made up of four Coopera- those in the artisanal/'informal" sector, addi-tive Programs. The Bank and each of the four tional to those provided by conventional indus-partner agencies agree on a work program to trial projects. The Program also provicded sup-assist governments to identify and prepare proj- port to Bank missions that reviewed industrialects suitable for Bank financing, and to support sector problems and programs in six countries,Bank country economic and sector missions. The and to two other missions that assessed thework is carried out bv a permanent staff Linit developmental potential of forestrv industricslocated in the partner agency, the cost of which and identified specific projects. In addition, theis shared by the Bank and the partner agency, Program's staff aided some of the Arab-financed75% and 25%, respectively. development funds in locating and appraising

The largest and oldest of the Cooperative suitable projects.Programs. between the Bank and the Food and Staff of the International Labour Organiza-Agriculture Organization of the United Nations tion (ILO) participated in ovcr 20 Bank country(FAO), had a record year of activity; it staffed or project missions in as many countries. Theand carried out 177 missions in 55 countries. Bank joined the ILO and the UNDP in a studvThe Program's emphasis was on projects bene- of appropriate construction technology in devel-fiting the rural poor and on promoting close in- oping countries that will include five countryvolvement of member governments in the formu- reviews and will provide the basis for the cco-lation of projects. Loans for projects prepared nomical application of labor-intensive methodsby the Program represented about one-third of to the construction of institutional buildings.the year's lending for agriculture. The Bank shared with ILO its experience in proj-

A substantial number of activities was also ect perf'ormance audit techniques, and tookrealized by the Bank-United Nations Educa- advantage of ILO's expertise in devising trainingtional, Scientific, and Cultural Organization programs.(Unesco) Cooperative Program which under- Co-financing with UN agencies became in-took, or participated in, 55 project missions creasingly frequent during the year: typicalinvolving 29 countries. Thirteen sector survey examples were a Bank-assisted highway projectmissions were also carried out, and nine coun- in Rwanda in which the World Food Programmetries received project preparation assistance. In provided "food for work," joining the UNDPaddition, Unesco staffed two project completion and several bilateral aid agencies; and the financ-missions on its own in support of the Cooperative ing, by the UN Environment ProgrammeProgram, and assisted the Bank's Operations (UNEP). of an experimental neighborhood asEvaluation Department with its work in the a component in the second phase of a Bank-education sector. aided sites and services project in Kenya. In

The main emphasis of the Bank-WHO Coop- other cases, though the cooperation involved noerative Program dtiring the year was on activities co-financing, it had practical operational signifi-designed to give effect to resolutions of the 1974 cance-as illustrated by the dovetailing of workUN Water Conference. These included, in by the Bank and the UN Fund for Populationparticular, preparation of "rapid assessment" Activities (UNFPA) in Bangladesh and thereports, analyzing a country's water stipply and Philippines; the parallel efforts of the Bank andsanitation situation and assessing its needs if the UN Children's Fund (UNICEF) in severalthe target set by the Conference-safe drinking countries as a result of annual operational re-water and adequate sanitation for all by 1990- views; in the work of UNICEF, the UNDP, andis to be met. The reports will serve to aid the bilateral agencies in paving the way for thelaunching, in 1980, of an 'International Drink- Bank's Integrated Nutrition Improvement Proj-ing Water and Sanitation Decade." Over 30 ect in Colombia; and in the International Civil"desk studies" to assist countries in their "rapid Aviation Organization's assistance in improvingassessment" were prepared during the year by the air transport system of several countries, asstaff of the Cooperative Program. Eleven water in Bolivia, thus providing the grotindwork forsupply and sanitation sector studies were com- Bank projects.

96 Other Activities

The Inter-agency Task Force on Rural Devel- tions on population research and on projectopment, set up in 1975 to carry out an experi- evaluation were held with the OECD Develop-ment in interagency planning in the field of rural ment Centre. Information on energy and com-development, proceeded with its work. In the modity problems was exchanged with the OECD,first phase, those UN organizations active in as well as with the European Communities.economic and social development agreed to New national and international organizationsorient their programs so as to benefit, primarily, were added to the list of regular recipients ofthe rural poor. To test this approach, six coun- Bank documents, bringing their number totries (Bolivia, Lesotho, Liberia, Nepal, Somalia, over 80.and Western Samoa) were chosen as the loci for In addition to the official aid agencies, theinteragency programs in rural development at Bank has relations with a number of nongovern-the country level. Under the leadership of the mental organizations (NGOs) concerned withLiberian government, the Bank participated in aid to developing countries. Contacts with thesepreparatory work to launching the first such organizations have been reinforced, and theirprogram. focus shifted to operational matters. This shift in

In fiscal 1978, the Bank, the FAO, and the focus has resulted in more frequent instances ofUNDP informed the World Food Council of Bank projects and NGO aid programs proceed-their decision to terminate the Consultative ing in parallel, especially in the sectors of ruralGroup on Food Production and Investment in and urban development. Church-supported orga-Developing Countries (CGFPI), established nizations are providing extension services in anunder the co-sponsorship of the three agencies IDA rural development project in The Gambia;after the 1974 World Food Conference. In the a nonprofit lay organization is involved in theview of the sponsoring agencies, the CGFPI's establishment of several training programs con-terms of reference proved unattainable, given nected with Bank projects; and church-supportedthe available resources. To the extent feasible, citizens' associations are facilitating the execu-the three organizations are prepared to provide, tion of an urban development project in theon request, further technical assistance to those Philippines.governments that have already prepared na- A concern to bring information on Banktional food investment strategies and to other procurement activities to all potentially inter-governments seeking to develop food and nutri- ested parties has resulted in the Bank's coopera-tion strategies. tion in another interagency undertaking. The

As the UN system moves toward the begin- Bank joined the UNDP, UNICEF, UNEP, andning of the Third UN Development Decade, the UNFPA and some bilateral aid agencies in ex-Bank pursued interagency exchanges in several tending financial support to the UN publication,key areas of long-range economic development. "Development Forum." An agreement was madeThus, the Bank participated in the Ad Hoc Inter- with "Development Forum" to publish a fort-agency Working Group on the World Employ- nightly business edition in several languages thatment Conference to assess what is being done as carries detailed information on Bank projects ofa follow-up to the Conference's resolutions con- interest to contractors, suppliers, and financiers.cerning a basic needs strategy; it is taking anactive role in the ACC (Administrative Com-mittee on Coordination) Task Force on Long- Iiiternational Agricultural Researchterm Development Objectives. It participated inthe UN system's preparations for several global In the last several years, many of the develop-conferences: the UN Conference on Technical ing countries have had unusually good harvests,Cooperation among Developing Countries, the due, in part, to exceptionally favorable weather.Conference on Agrarian Reform and Rural For the time being, food supplies have comeDevelopment, and the Conference on Science closer to meeting needs. But, if productionand Technology. The Bank was represented in a trends remain unchanged, this balance is un-number of intergovernmental meetings orga- likely to continue. All the evidence points to thenized by the UN Conference on Trade and fact that the population in most of the largestDevelopment. It was also represented at the UN and poorest countries will increase faster thanConference on Desertification, held in Kenya, food production, giving rise to serious shortagesas well as at the Tenth World Energy Confer- of food. Improving the quality and quantity ofence, held in Turkey. agricultural production, and ensuring its stability

Extensive, as always, were the Bank's con- against adverse climate, diseases, and pests,tacts with the Organisation for Economic Co- therefore, remain critical for most developingoperation and Development (OECD), and Bank countries. For the poorer countries, developmentparticipation in the work of the Development of agricultural technology appropriate to theirAssistance Committee (DAC) of the OECD on resources and their physical and social environ-bilateral aid programs, projections of aid and its ments is fundamentally important.terms and purposes, and external debt. Consulta- The Bank continues to serve as chairman, and

Economic Research and Studies 97

with the Food and Agriculture Organization of in much of Asia, and new varieties of wheatthe United Nations (FAO) and the United developed at CIMMYT and adopted widely andNations Development Programme (UNDP), as successfully, for example, in India and Pakistan.co-sponsor of the Consultative Group on Inter- However, most agricultural research is a long-national Agricultural Research (CGIAR). term process aimed at constantly improving and

The research programs and activities sup- adapting existing technologies, breeding varietiesported by the members of the CGIAR continued to withstand stresses such as drought and disease,to expand in fiscal 1978. The 28 contributing and devising means whereby improved techni-members are expected to provide over $87 mil- ques can be effectively applied in farmers' fields.lion in calendar year 1978 to the 11 research Research of this kind implies close cooperationcenters and programs funded by the Group. between social and biological scientists, clearThis is 11 % more than in the previous year. understanding of the constraints under which

The Bank's contribution, made out of its the poorest farmers labor, and thorough testingprofits transferred to IDA, will be in an amount of the research results obtained.of up to $8.7 million, as authorized by the Board Innovative agricultural development benefit-of Governors. This contribution is customarily ing the people at the poorest levels in the devel-made in two tranches-the first in February and oping countries can succeed only if founded onthe second in the latter half of the year-allocat- proven technology that uses a minimum ofing, up to the total authorized, the amounts purchased inputs, such as fertilizer and pesti-required to meet the needs of particular centers cides, and that keeps as low as possible, a farm-and programs after the other donors have made er's risk of crop failure. The research programstheir commitments. of the international centers supported by the

The centers and programs supported by the Group are designed to promote significant in-Group, together with the amounts-if any- creases in agricultural productivity through thegranted to them by the Bank under the first development of this kind of technology.tranche of its contribution for 1978, are:

-the International Center for Tropical Agri-culture (CIAT), based in Colombia: Economic Research and Studies$500,000:

-the International Maize and W"heat Im- The economic and social research conductedprovement Center (CIMMYT), based in in the Bank is part of its contribution to theMexico: $100,000; understanding of the development process. Over

-the International Potato Center (CIP), the seven years that the formal research programbased in Peru: $100,000; has been in existence, the Bank has built up an

-the International Board for Plant Genetic internal research capability to meet the objec-Resources (IBPGR), based in Italy: tives of the program; these objectives are$100,000; designed to meet the Bank's own needs as well

-the International Center for Agricultural as those of its member countries as regardsResearch in the Dry Areas (ICARDA), research on economic development. To date, 67based in Lebanon, Syria, and Iran: research projects have been completed and 87$1,200,000; are ongoing. In fiscal 1978, 17 research projects

-the International Crops Research Institute were started.for the Semi-Arid Tropics (ICRISAT), Research projects are normally initiated withinbased in India; the Bank and involve close collaboration and

-the International Institute of Tropical Agri- cooperation between Bank staff and with theculture (IITA), based in Nigeria: research community outside the Bank. Collabor-$2,000,000; ation is usually carried out with institutions in

-the International Livestock Center for developing countries. Indeed, one of the mostAfrica (ILCA), based in Ethiopia: desirable by-products of the Bank's research$1,000,000; program is that it has assisted the development

-the International Laboratory for Research of indigenous research capacity in memberon Animal Diseases (ILRAD), based in countries. In fiscal 1977, for instance, 13 proj-Kenya: $700,000; ects involved collaboration with 26 institutions

-the International Rice Research Institute in 16 different countries; in fiscal 1978, research(IRRI), based in the Philippines; and projects involved collaboration with individuals

-the West Africa Rice Development Asso- and institutions in 29 member countries, most ofciation (WARDA), based in Liberia. them in the developing world. The research pro-

Some of the research carried on at the inter- gram is addressed to several different audiences;national centers has already achieved a dramatic they include the Bank's own policymakers andimpact on food production in developing coun- operating staff, planners and policymakers intries. Well-known examples are the new varie- member countries, and the international researchties of rice developed at IRRI and now grown community. Dissemination of Bank research is,

98 Other Activities

The Bank, WHO, and UNDP are participating in alan z-ranuge Special Prograinine Jor Resevarch anzdTraining in Tropical Diseases. Contral of six maJordliseases-filariasis. leishin anitisis, leprasy', malaria,sZihistasoantinsis, ald trspallosoaniasis-is a InaJorohje Xiice. Here, nzo fiascicide thl(at k illssnnis whichact as hasts for the parasite caatsinig schistosoiniasisis b cig pp sprayed in atll Egs /)ptaf ilfri a tian canall(i/.

therefore, designed to reach all three groups. Specifically, it is concerned with the constructionPublications resuLting from the research pro- of an optimal strategy of control using mollusci-gram are listed in the World Bank Catalog, cides and chemotherapy. The study addresses theissued annually. Detailed information about problem for irrigated agricultural development incurrent research projects may be found in the Egypt, Ghana, St. Lucia, Sudan, and Tanzania.Abstracts of Current Studies, also published an- Without adequate and convenient suppliesnually. The research program covers a large of safe water for drinking and washing asso-range of specialized areas. Since it is not possible ciated with sanitation facilities, people cannotto discuss these areas in detail, some illustrative attain a reasonable minimum standard of exist-examples are presented here. ence. Consequently, a major research effort, now

Poverty-related research in the Bank includes approaching the pilot project stage, is under waywork on disease control in developing countries. on the potential for use of low-cost technologiesFor example, schistosomiasis is a tropical para- in these fields. Reports from the field studies andsitic infection that victimizes an estimated 250 other inputs completed thus far indicate thatmillion people in 71 developing countries. Due there are many viable technological alternativesto its association with agriculture, it is considered between the pit latrine and the complete water-as one of the major occupational hazards in the borne sewerage system. Environmental sanita-rural sector of developing economies. Strategies tion can be significantly improved by theto improve the socioeconomic conditions of the installation and proper maintenance of systemspoor in developing countries include disease costing three to 10 times less on a per householdcontrol programs that are generally expensive basis than conventional sewerage. Similarly,and impose heavy demands on scarce health water supply systems for standpipe service canresources. A study currently under way in the help break the transmission process of mostBank focuses on the problem of designing an water-related diseases at significant savings ineconomical control strategy for schistosomiasis. distribution costs. Such solutions are particularly

Operations Evaluiation 99

useful for rural areas, urban slum upgrading, and tant natural resources and resource-based com-other types of projects designed to benefit the modities. One research project comprises apoor. number of subprojects, including the construc-

It is also increasingly realized that, if employ- tion of a model of world energy economy;ment opportunities and low-cost goods and ser- regional and global models of trade flows and ofvices are being sought for the poor, small-scale investment planning in the bauxite/aluminumenterprises may represent a neglected potential industries; and research on the dynamics ofthat should be exploited. However, there is little commodity markets.systematic knowledge about the nature of this Considerable research in the Bank in the fieldpotential. The purpose of a current study is to of international trade has been prompted by thestart to remedy that deficiency. Several case importance of trade prospects in the economiesstudies of experiences will be conducted in of the developing world. For example, a majorselected countries. In addition, there will be a study under way is designed to undertake anumber of surveys of selected industries in urban rigorous analysis of the subject through a cross-and rural areas that will explore, in depth, the section investigation of the production of majorcharacteristics of the enterprises and the eco- export commodities and a time-series analysis ofnomic environment in which they operate. the effects of export promotion measures. It will

In the field of agriculture and rural develop- evaluate the export promotion efforts of fourment, the Bank has invested significant resources developing countries: Brazil, the Republic ofto examine the economic conditions of the rural China, Greece, and Pakistan. The results will bepoor. One project is designed to assist in develop- used to formulate recommendations on theing the informational and analytical base for scope and methods of export promotion in devel-regional development lending programs and to oping countries.provide an analytical framework for assessing The research program at the Bank has nowthe role of tenure reform, technological innova- completed one cycle in the sense that severaltion, and other elements of a development projects, initiated at the start of the program,strategy in this area. Another project investigates are now completed, or are close to completion.farm household behavior and regional economic It was decided that this would be an opportunechange to clarify the structure of the local econ- rnoment to review the program to assist theomy of the Muda River Irrigation Project in management of the Bank in determining the sizeMalaysia. In addition, it examines the project's and nature of the research program over thesecondary effects outside agriculture and the next cycle. To this end, a general panel of emi-interactions between agriculture and other nent individuals has been established. This panelactivities. will be assisted by seven panels, each of which is

Developing countries are also regularly faced to review a specialized area of research. Twowith the problem of investment planning in the panels have already reported, the External Ad-industrial sectors where each individual project visorv Panel on Population and the Researchis subject to economies of scale. A research proj- Advisory Panel on Income Distribution andect, about to be completed, has developed a Employment. Five new ones have been plannedmethodology that is useful for planning and for to cover the following areas of research: Indus-project identification. A series of manuals is trial Development and Trade, Education, Publicbeing prepared illustrating the analytical frame- Utilities, Transport, and Agriculture and Ruralwork and several case studies that have been Development. The review is expected to be com-conducted in the mechanical engineering and pleted near the end of fiscal year 1979.fertilizer subsectors in Korea and Egypt. Thesmall size of many national markets may neces- Operations Evaluationsitate regional cooperation among developingcountries. The manuals also present regional The Bank's system for evaluating its opera-models that discuss the costs and benefits of tions has continued to develop. During this pastcooperation in the fertilizer and forest industries year, particular emphasis has been placed onsubsectors in the ASEAN region and the Andean developing a stronger system for feeding experi-Common Market countries. ence from the audit process back to the operating

To understand the world supply and demand departments; special efforts have been made tosituation for various commodities, a global, increase borrowers' interest and involvement inrather than a regional, framework is necessary. establishing their own evaluation functions; andAlso, the Bank's periodic evaluation of the the Bank has published, for the first time, anworld economic situation involves a systematic Operations Evaluation Department (OED) re-framework for the compilation of data and anal- view of project performance audit results.ysis of commodity markets. The aim of Bank Some of the feedback process takes place asresearch in this area is, therefore, to provide the the operating departments prepare project com-methodology and the data format to analyze pletion reports-the culmination of the super-global supply and demand conditions of impor- vision process, and a major element of the per-

100 Other Activities

formance audit system. Another, and perhaps The evaluation system in the Bank remainsmore important, element of the feedback system comprehensive in its coverage of completed proj-is the yearly review of project performance ects, and over 100 projects were reviewed inaudit reports for individual sectors initiated by fiscal 1978. In addition, broader reviews ofthe Central Projects Staff. This review has been Bank operations were also conducted. Thesedeveloped more fully during the year to in- reviews are part of the OED's continuing effortclude all sectors. Reviews of sets of audit reports to contribute to the greater effectiveness of thefor individual sectors are prepared, and the Bank's work.experience is discussed with staff from regional OED's annual review of project performanceprojects departments and from the OED. The audit results was published for the first time.purpose is to examine current Bank policies and This review covered the experience with imple-practices for individual sectors in the light of mentation of 70 projects, representing Banklessons drawn from the audit reports, with lending of approximately $1,300 million, forparticular reference to project design and imple- which project performance audit reports werementation. The main conclusions of these reviews completed in 1976. Most of the projects reviewedare intended to influence directly current and have been implemented successfully, are infuture practices of the operating departments. operation, and hold the prospect for economicThey are also being reflected in the OED's returns similar to, or better than, those estimatedannual review of project performance audit at appraisal.reports, where an effort is made to distill from The review underlined the need for adequatethe experience in all sectors the most pertinent understanding of the local conditions in whichlessons for current and futLre operations. the Bank operates. It noted that several innova-

The review and discussion of completed proj- tive projects did not achieve their institutionalect reports by sectors complement the examina- objectives because of insufficient understandingtion of current operating experience conducted of local conditions by those charged with theirby the operating staff during the regular semi- design, a factor that directly contributed to someannual review of implementation and supervi- of the shortfalls observed. The review also notedsion problems, a function which has been further the improvements that have since been intro-developed during the year to provide an interim duced in Bank procedures to insure againstevaluation of selected recurring problems in failures in future projects.project implementation. The Joint Audit Committee of the Board of

In another dimension of the evaluation proc- Executive Directors has maintained continuingess, the Bank has been concerned to involve the oversight of this work program and of its effec-borrowing countries, too. Support and encour- tiveness. The conclusions of the Joint Auditagement are being provided, both with respect to Committee, the report of the Director-General,the evaluation by borrowers, themselves, of proj- Operations Evaluation, on the status of theects the Bank has helped finance and also, and of Bank's evaluation svstem, and OED's annualgreater potential consequence, to the establish- review of project performance audit findingsment of a central function in borrowing coun- were all reviewed by the Executive Directors.tries to evaluate their own investment programs.In regard to the first, Bank loans and credits nowrequire the borrower to produce a project com- Internal Auditingpletion report-a basic evaluation document-as a standard loan feature. Lending for projects The Internal Auditing Department also per-in agriculture, education, and urban develop- forms an evaluation function within the Bank,ment-the more complex sectors-now regu- with emphasis on the systems and procedureslarly provides for the establishment of special and related internal controls used in the conductunits to monitor and evaluate the progress of and management of Bank operations. Depart-projects. These systems are intended to assist the ment directors and other levels of managementmanagers of the projects and to provide the basis are provided with periodic and independentfor assessing the overall impact of the project on audits and appraisals of activities within theircompletion. On the establishment of a broader respective areas of responsibility, including theevaluation, discussions have taken place with a identification of possible means of improving thenumber of borrowing countries. In fiscal 1978, efficiency and economy of operations and thethe Bank sponsored a seminar on evaluation for use of resources.senior officials of a number of francophone The principal responsibilities of the Depart-African countries. The seminar evoked a positive ment are to: (a) review and determine theresponse, and the desirability of establishing soundness, adequacy, and application of systems,national facilities for evaluating public invest- procedures, and related internal controls, and toment projects received strong support from the promote effective controls at reasonable cost;countries represented. Further regional seminars (b) review and determine the extent of compli-are planned. ance with various governing agreements or

Membership, Bank and IDA 101

instruments and related decisions, regulations, son also is maintained with the Bank's Executivepolicies, plans, and proceduies of the Board of Directors through its Joint Audit Committee.Governors, Executive Directors, and Bank man-agement; (c) review and determine the extent towhich assets are accounted for and safeguarded Initernational Centre for Settlementfrom losses of all kinds, including, where appli- of Investment Disputescable, the effective utilization of these resources:(d) review and determine the reliability and During the fiscal year, the number of Con-validity of significant accounting, financial, and tracting States increased by four to 71. By Juneother data used by management; and (e) recoin- 30, 1978, an additional six States had signed themend improvements in order to strengthen in- Convention on the Settlement of Investmentternal control, improve administrative efficiency, Disputes between States and Nationals of Otherand eliminate any uneconomical use of resources. States, but had not yet ratified it. Nine arbitra-In order to maintain its independence and objec- tion cases have been brought before the Centre.tivity, the Department has no direct responsibil- Four proceedings have been discontinued afterity for developing and installing changes in amicable settlement; in one proceeding, ansystems, procedures, and internal controls which award has been rendered, and four proceedingsit would be expected to review. are continuing. The Centre's own Annual Report

The Department's overall work program provides details of its membership and activities.covers a wide range of financial, accounting,administrative, and other Bank activities, some Membership, Bank and IDAof which are reviewed on an annual basis,whereas others are reviewed biennially, or every Sao Tome and Principe, as well as Maldives,three years. In carrying out each assignment, the joined the Bank and IDA on September 30, 1977director of the Department and members of his and January 13, 1978, respectively, and Suri-staff, as appropriate, have unrestricted access to name joined the Bank on June 27, 1978. Como-all Bank records, documents, and personnel ros, which became a member of the Bank inrelevant to the activity under review. Where October 1976, became a member of IDA onrelevant, the Department coordinates its annual December 9, 1977, bringing the total member-work program with the Bank's external auditors, ship of the Bank to 132 and of IDA to 120.and its working papers and reports are made At the end of the year, action was pending onavailable to the external auditors to assist them in membership in the Bank for Cape Verde,planning and conducting their examinations of Djibouti, Dominica, and Solomon Islands, andthe annual financial statements of the Bank. Liai- in IDA for Cape Verde.

Borrowings and Finance

Income, Expenditures, and Reserves: Bank tinued to rise steeply during the past 10 years asloans and investments have expanded. The figure

Net income of the Bank was $238 million in in fiscal 1978 was about five times greater thanfiscal 1978, up $29 million, or 13.9%, from net in fiscal 1969.reported in the previous year. Investment income totaled $614 million, up

The Bank does not trade in the currencies of $78 million, or 14.6%, in the year. The Bank'sits member countries for its account. Under pres- investments rose $943 million to a total ofent policies, adjustments arising from the trans- $8,776 million on June 30, 1978. Averagelation of currencies to US dollar equivalents realized total return on investments includingwould not now, or in the future, result in realized capital gains or losses, was 7.0%, comparedgains or losses such as would result from the with 7.4% in fiscal 1977. This reflected loweractual conversion of currencies into US dollars. interest levels in major capital markets.

As a result of this policy, the General Reserve, In fiscal 1978, income on loans rose sharplyrather than net income, was credited in an to $1,325 million, compared with $1,073 millionamount of $123.6 million in the fiscal year, rep- in fiscal 1977. The average return on outstandingresenting translation adjustments arising from loans in the period was 7.6%, compared withcurrency appreciations and depreciations. This 7.4% the year before.compares with a debit of $10.3 million in fiscal Virtually all of the increase can be attributed1977. Following the effectiveness on April 1, to the rising level of the loan portfolio outstand-1978 of the Second Amendment to the Articles ing resulting from higher loan commitmentsof Agreement of the International Monetary made during recent years. The Bank's lendingFund, the Bank has decided for purposes of the rate formula now requires a positive spread offinancial statements for the fiscal year ended 0.5% between the cost of funds borrowed by theJune 30, 1978 to express its capital stock on the Bank during the preceeding 12 months and thebasis of the Special Drawing Right (SDR). As a interest rate charged on the Bank's loans in mem-result, the 1 % portion of the Bank's capital ber countries. The formula became effective onstock which was paid in US dollars, together with July 1, 1976 and applies only to loans grantedthe 9% portion of the capital stock which has after that date. In July 1976, the interest rate onbeen released by certain member countries for Bank loans was fixed at 8.9%. It fell graduallylending in US dollars, has been revalued at the throughout fiscal 1977, and for the last quarterrate of exchange of the US dollar to the SDR at of the fiscal year was 8.2% .The interest rate con-June 30, 1978. The compensating adjustment re- tinued to drop during the past year, and, for thesulting from this revaluation amnounting to $13.4 final quarter of fiscal 1978, it was set at 7.5%.million has been charged to the General Reserve. The decrease in the interest rate charged on theAn amount of $100 million, derived from net Bank's loans reflected a decline in the cost ofincome in 1977, was allocated by the Executive borrowings to the Bank during the past twoDirectors to the Bank's General Reserve in fiscal fiscal years.1978. Other income of the Bank was $8 million.

The Financial Accounting Standards Board in Expenditures of the Bank amounted to $1,708the United States requires that foreign currency million, an increase of $300 million, or nearlytranslation adjustments be included in the de- 21.3%. A rise of $294 million in interest andtermination of net income for the period in issuance costs on the Bank7s borrowings, to awhich they occur. In view of the character of the total of $ 1,560 million, accounted for most of theBank as an international organization and' its increase in expenditures in the year. The success-related policies, the Bank does not deem the ful continuation of the borrowing program thatstatement of the Board to be applicable to it. On has added $7,955 million to outstanding borrow-June 30, 1978, the General Reserve of the Bank ins in the last three fiscal years was the principalamounted to $ 1,953 million. cause of the rise in fixed charges.

The Bank's gross revenues increased $330 Continuing inflation and an expansion in somemillion in fiscal 1978 to a new level of $1,947 of the Bank's operations caused a further in-million. The level of gross revenues has con- crease in administrative costs of the Bank during

The BanlAk's Borrowings-Fiscal 1978 103

the year. These costs totaled $148 million, up rowings for the subsequent three years. The$7 million, after deducting $92 million received objective of this policy is to ensure that the Bankas a management fee charged to the International is in a position to meet adequately temporaryDevelopment Association, and $2 million paid downward fluctuations in cash flow. The Bank'sto the Bank by the International Finance Cor- liquidity position increased by $972 million inporation for service and support. fiscal 1978 to a total of $8,857 million on June

The Bank's Board of Governors approved a 30, 1978, net of commitments for settlement.transfer of $100 million from net income for The Bank's liquidity stands at the level of aboutfiscal 1977 as a grant to IDA. 45% of the next three years' net cash require-

ments. It is intended to bring this ratio down tothe 40%) range over the next several years.

Other Financial Operations: Bank

Loans held by the Bank on June 30. 1978 The Bank's Borrowings-Fiscal 1978amounted to $37,796 million, including $4,731 million in loans not yet effective. Effective loans Theld by the Bank totaled S32,566 million after 1978 was set at the equivalent of $4,200 million.excluding $499 million of effective and outstand- Of this amount, $600 mllion was borrowed ining loans to the International Finance Corpora- April 1977 as an advance in order to take ad-tion, of which $422 million had been disbursed. vantage of favorable factors in the United Statestion, of which $422 mivestmenomarket.Thisnisueswassherefor

Loan disbursements to countries in the year investc ent market. Ths Issule was thereforeaggregated S2_787 million, a new high, and $151 inUednth197A uaRpotmillion higher than in fiscal 1977. Despite Actual borrowings in fiscal 1978 amounted tomincreion disbursementmfiscal however.Desp the totthe equivalent of $3,636 million, divided into 28increase in disbursements, however, the total for issues publicly offered or privately placed by thethe year was substantially less than had heen Bank. The aggregate of gross borrowings in theprojected at the start of the 1978 fiscal year. five fiscal vears. 1974-78, was $17,531 million,

Aggregate disbursements to countries snce compared with $6,794 million in the precedingthe start of Bank operations stood at $25,033 five years. This higher rate of borrowing in themillion at June 30, 1978. capital markets supported the growth in the

Repayments of principal on the Bank's loans Bank's financial requirements arising from theaggregated S890 million in the year: $831 million rapid expansion in its lending operations duringrepaid to the Bank and $59 million to investors the period.who had purchased portions of loans. Cumula- For the third consecutive year, the investmenttive repayments on loans by June 30, 1978, were markets were the main source of borrowed funds$6,480 million to the Bank and $2,425 million to the Bank. In the year. the Bank -sold 20to purchasers of loans. issues, equivalent to $2,398 million, on these

In fiscal 1977, sales of participations in new markets, and equal to nearly two-thirds of allloans and of maturities from the Bank's loan borrowings in the period.portfolio were at the highest level in more than Governments and central banks purchased10 years. totaling $183 million. In fiscal 1978, $1220 million equivalent of Bank issues in fiscalsimilar sales amounted to $189 million. Con- 1978. equal to about one-third of total issues,tinuing liquidity in commercial banks around and an increase of $82 million over such pur-the world. the principal purchasers of these chases in the previous year.items, was the underlying reason for the high The Bank borrowed the equivalent of $291levels of loan sales in both fiscal years. Included million in the petroleum-exporting countries inin these sales during the period were participa- the period, a decline of $104 million from thetions of $20.5 million purchased by the Kingdom level of such borrowings in fiscal 1977. Theof Norway and converted to grants benefiting the Central Bank of Libya purchased a Netherlandsborrowers. The participations were undertaken guilder bond issue from the Bank. The issue,in connection with Bank loans to Botswana, f.100 million of 7.5% seven-year bonds, dueCameroon, and Senegal. and were taken under 1984, was equivalent to $40.1 million. A furtherthe terms of the Aid Cooperation Agreement $251 million of the Bank's two-year US dollarbetween Norway and the Bank, which, by June bonds were placed with governments and official30, 1978. aggregated $38.167 million. After agencies of 14 petroleum-exporting countries,cancellations and adjustments for changes in including Saudi Arabia, and with an OPECvalue of nondollar currencies, the total of loan fund.sales aggregated the equivalent of $2.93 1 million Other governments and official agencies pur-on June 30, 1978. chased $929 million equivalent of Bank obliga-

The level of the Bank's liquidity position is tions: Germany-DM500 million of five-yeardetermined by an established policy that requires notes by the Deutsche Bundesbank to re-it to maintain liquid holdings at any given time, finance an equal amount of maturing notes;equal to a minimum of 40% of estimated bor- Japan-Y60,000 million of six and one-half-year

104 Borrowings and Finance

World Bank: Gross Borrowings, 1964-78 The investment market in Germany was the(US$ millions. Fiscal years.) largest supplier of borrowed funds to the Bank

in fiscal 1978. Nine issues were sold in the-- German market in the year. They totaled

DM2,000 million, equal to $894 million, adecline of nearly $300 million equivalent belowsuch marketings in fiscal 1977.

Included were two public offerings amounting4,000 to DM800 million: DM500 million of 5.75%

12-year bonds, the largest World Bank public- issue to be sold in Germany; and DM300 million

of 6% eight-year bonds. By private placements,the Bank sold seven issues, amounting to

* - DM1,200 million, in the market in Germany.It placed a DM150 million note issue, due 1982,

3,000 with the Deutsche Bank and the Dresdner Bank.30co____________ - _ - Further, a DM100 million 6.25% loan, due

- _ 1987, was obtained from the Deutsche Bank, anda DM200 million 6.95% 15-year loan from the

-- Deutsche Genossenschaftsbank, a cooperative-- institution.

The remaining four placements in Germany,

2,000 aggregating DM750 million, were with represen-___________________ - - _ tative institutions of the German savings banks

I _ sector. They included a DM200 million 6.90%loan, due 1988-92 from the Deutsche Girozen-

_ - trale-Deutsche Kommunalbank, as Manager,-_ and Bayerische Landesbank Girozentrale and

Norddeutsche Landesbank Girozentrale as Co-_ -- Managers; a DM200 million 6.125% note, due

1.000 _ - - 1985, with the Bayerische Landesbank Girozen-

trale; a DMI50 million 5.15% loan, due 1979,from a consortium of members of the Germansavings banks association represented bythe Deutsche Girozentrale-Deutsche Kommunal-bank; and, from the same institutions, a DM200

-- million 4.20% loan, due 1979.0 - - ____ In Japan, the Bank raised Y80,000 million,

equal to S317 million, by means of two publicofferings. They included Y30,000 million of 7%

s a, bonds, due 1983-92; and Y50,000 million of< ,, .: 6.80% bonds, due 1983-92. The latter issue was

the largest ever offered in the Japanese marketby a nonresident borrower. Simultaneously withthe offering of Y30,000 million of 7% bonds on

obligation by The Bank of Japan that will re- the Japanese domestic market, the World Bankfinance an equal amount of maturing obliga- made an offering on the Eurobond market; ittions; and $449 million of two-year US dollar consisted of Y20,000 million of 6.25% seven-bonds by governments and official agencies in year bonds, due 1984.70 countries and by several regional and inter- Borrowings in the US market, all by means ofnational organizations. public offerings, amounted to $750 million,

Borrowing operations in the year were high- divided into three $250 million tranches oflighted by the first public issues sold in the 7.125% five-year notes, 7.75% 10-year notes,Japanese market since 1973 and by the first and 8.35% 25-year bonds. Indicative of the im-World Bank bond offering in the Eurobond portance to the Bank of having access to themarket denominated in yen. investment market in the United States is the

Sales of issues in the investment markets were record of such borrowings in the four fiscal years,limited to Germany, Japan, Switzerland, the 1975-78. Borrowings in these years aggregatedUnited States, and the Eurobond market. Of the $4,375 million in the US market, equal to aboutissues sold on these markets, $1,572 million was 28% of all borrowings in the period. Includeddistributed by public offerings, and $826 million in US borrowings for 1975-78 were $1,200 mil-by private placements with financial institutions. lion of 25-year bonds, $1,600 million of 10-year

Capit(aliz7tion 1 (5

notes. $1,550 million of five-year notes, all sold year. Borrowing costs in fiscal 1978, weightedby public offerings, and $25 million by place- by amount only. were 6.74%. The average costments with New York branches of foreign com- of all funds to the Bank, including paid-in capitalmercial banks. and accumulated earnings, which are cost free.

Five issues aggregating SwF825 million, equal was about 6.02%.to $363 million, were sold by the Bank in Swit-zerland in the fiscal year, one by public offering Capitalizationand four by placements with private financialinstitutions in Switzerland. The public issue con- In the Articles of Agreement of the Bank. thesisted of SwF150 million of 4.50% 15-year capital stock is expressed in terms of the Unitedbonds, due 1992. States dollar of the weight and fineness in effect

The SwF675 million in placements included on July 1, 1944 (1944 dollars). Until 1971, theSwF200 million of 5.375% notes. due 1984, with current United States dollar had the same valuea group headed by Cr6dit Suisse, Swiss Bank as the 1944 dollar and the Special Drawing RightCorporation, and Union Bank of Switzerland; (SDR). xhich was instituted in 1969. In 1972,SwF300 million of 4.50% notes, due 1984, with the current dollar value of the 1944 dollar andSwiss Bank Corporation, Union Bank of Swit- the SDR increased to $1.08571 and in 1973 tozerland, and Cr6dit Suisse; and two 5% loans $1.20635 as the result of the first and seconddue 1983-one amounting to SwF100 million, devaluations of the dollar. Until mid-1974, bothand the other in the amount of SwF75 million. the 1944 dollar and the SDR continued to be

The Bank further increased its borrowings valued in gold and had the same gold value. Thusfrom the Interest Subsidy Fund (Third Win- on July 1, 1974. the value of the SDR, expresseddow)') by $17.8 million, bringing the aggregate in terms of United States dollars, was $ 1.20635.borrowings by the Bank from the Fund up to which was the equivalent of one 1944 dollar.more than $184 million on June 30, 1978. Since July 1, 1974, when a valuation method

Borrowing operations in fiscal 1978 included for the SDR was adopted based on a basket of$2.551 million that represented new borrowings. 16 major currencies, the value of the SDR hasand $1,085 million that replaced maturing issues. ftiLlctLated daily. The current dollar valuc of theIn the previous year, issues sold to raise new 1944 dollar. on the other hand, was decemed tomoney amounted to $3,805 million, and refund- remain fixed at the rate established by the USings to $916 million. par value legislation of 1973.

A total of $1.395 million equivalent of debt Since the effectiveness on April 1, 1978, ofmatured during fiscal 1978, with maturing two- the Second Amendment to the Articles of A-ree-year dollar bonds held by central banks and ment of the International Monetary Fund, cur-notes, placed with the Deutsche Bundesbank, rencies no longer have par values and the basisaccounting for the larger part of this sum. A for translating the 1944 dollar into currentfurther $235 million of market issues came due United States dollars no longer exists. The Bankin the period: DM350 million of loans previously is examining the implication of this change onplaced with a girozentrale in Germany: $50 mil- the valuation of its capital stock and the impactlion of 4.25°k 21-year bonds sold in the US it will have on its financial statements.market in 1957 in an original amount of $100 For purposes of the financial statements formillion; and 1LL75 million of 6.875% five-year the year ended June 30, 1978, the Bank has ex-bonds sold in the market in Lebanon in 1973. pressed the value of its capital stock on the basis

Additional debt, aggregating $70 million, was of the SDR in terms of United States dollars asretired by means of sinking fund and purchase computed by the Fund ($1.23953 per SDR) onfund operations. June 30. 1978.

Outstanding obligations of the Bank increased The Bank's subscribed capital was increasedS4,124 million to $22,602 million as of June 30, by SDR1.070.7 million in the fiscal year. In-1978. On that date, estimates indicated that 26% cluded were the original subscriptions of Saoof the Bank's oblitations were held by investors Tome and Principe (SDRI.4 million), Maldivesin the United States. 24% in Germany, 13% (SDR600.000), and Suriname (SDR 1 6.2 million).in Japan. 11 % in Switzerland. and 6%' in which became members during the year. TheSaudi Arabia. The remaining 20% of outstand- remaining SDRI,052.5 million represented in-ing borrowings were held by investment institu- creases in the capital subscriptions of 15 membertions. including central banks and government countries: Argentina (SDR96.8 million), Austriaagencies in more than 80 countries. (SDR39.2 million), Canada (SDR 170.4 million),

Colombia (SDR24.2 million), Cyprus (SDR5.6Borrowing Costs: Bank million), Dominican Republic (SDR3.2 million).

The Bank's borrowing costs in the fiscal year,weighted by amount and maturity, averaged6.95%, compared with 7.85% in the previous (1) See the Bank's A mmal Repr t for fiscal 1976. pages 7-8


Ecuador (SDR18.7 million), Korea (SDR62.4 1978, aggregate participations in IDA credits bymillion), Nepal (SDR3.4 million), the Nether- Norway under the agreement totaled $43.5lands (SDR175.6 million), New Zealand million.(SDR4.5 million), Philippines (SDR39.3 mil- Other resources that became available to IDAlion), Somalia (SDR3.9 million), Sweden during the fiscal year totaled $25 million, and(SDR90.3 million), and the United States were derived from releases by Part II countries(SDR315.0 million). and cancellations of and repayments on cred-

The increases were received by the Bank its,(3) after taking into account a net decreaseunder resolutions adopted by the Board of of $18.8 million in resources provided byGovernors which enabled the Bank to move operations.ahead in the following three areas: to increase itsauthorized capital stock by SDR7,000 million, to Foreign and International Bond Markets-accept special increases in subscriptions by 125 Calendar 1977members, and to allow nine of these members toexercise, in lieu of the selective increases, pre- Borrowing in foreign and international bondemptive rights as stockholders to maintain the markets(S4 during 1977 totaled $34,900 million,proportion of their equity and voting power. As slightly above the total of S34,300 million re-a result, an aggregate amount of SDR7,070 corded in 1976. The increase in borrowing ismillion has been allotted to member countries considerably less than between 1975 and 1976for subscription. when borrowing increased by 50%, or from

Legislative or other required action by the $22,800 million to $34,300 million. A $3,900individual members in subscribing to additional million increase in international bonds, $15,400capital may be taken up to October 1, 1980, or million to $19,300 million, was substantiallysuch later date as approved by the Executive offset by a $3,300 million decrease in foreignDirectors. The resolution covering the selective bonds issued in national markets, $18,900 mil-increases authorizes a maximum increase in sub- lion to $15,600 million.scription for each member country, which may Borrowing by industrialized countries and in-be taken up by that member in whole or in part, ternational organizations declined from $23,200from time to time throughout the subscription million to $22,100 million, and from $8,200 mil-period, or not at all. lion to S7,000 million, respectively. Developing

countries borrowed $4,400 million, almostFinances: IDA double the 1976 total of $2,300 million. Borrow-

ing by centrally planned economies increasedCredits amounting to $13,959 million were from $100 million to $200 million. Borrowers

held by the Association on June 30, 1978, includ- unallocated by country borrowed $1,100 million,ing credits not yet effective and exchange adjust- more than twice the amount raised in 1976ments of $485 million. Effective credits totaled ($500 million).$12,349 million, including $3,881 million asyet undisbursed. Credits approved, but not yet Foreign Bonds: the United Stateseffective, were $1,609 million at year's end.

Disbursements were $1,062 million. Aggre- Foreign bonds issued in the United Statesgate disbursements on June 30, 1978 were totaled $7,539 million, 29% below the $10,632$8,565 million. million borrowed in 1976. During 1977, public

The total of resources provided to IDA in- offerings totaled $5,533 million and privatecreased $6,294 million in the period, primarily placements, $2,006 million.from subscriptions and contributions to the Fifth Borrowing in the US by industrialized coun-Replenishment, which aggregated $5,980 mil- tries amounted to $4,805 million, considerablylion.12) The value of resources provided by mem- less than the $7,669 million raised in 1976. Sixty-bers in prior fiscal years also increased by $179 one percent ($2,933 million) of the amountmillion. The World Bank granted $100 million borrowed by industrialized countries was in theto IDA from its fiscal 1977 net income, of which

to IDAfrom is fiscl 1977net inome, o which (2) The availability of $3,439 million of this latter amouint for$89.8 million was for the general purposes of The extension of ci-edits is subject to certain conditionsthe Association and $10.2 million for grants by (see page 12).

()If the SDR were to be substituted for the 19601 dollar, theIDA for agricultural research and onchocerciasis amiount repayable in 5SDRs would be determined on thecontrol. basis of the cuLrrency disbuirsed as of the date of disbuLrse-

ment. The commitment wouLld be adjusted on the basisNorway made $21.1 million available to IDA of the SDR rate established by the IMF for the US dollar

on that date. For deter-mining the amouint to be paid byin fiscal 1978 by purchasing, on a grant basis, the borrower with respect to prinicipal and charges in aparticipations in credits to Cameroon, Chad preVioLtsly agreed curretscy, the SDR rate for that currency

on the date payment is due wouild be uised. The amor-Madagascar, and Thailand. These participations tization schedules and service chargies would be com

puted in SDRs.were made under the terms of the aid coopera- (p) The terms "foreign" and "international" in this context

tion agreement between the Kingdom of Norway refer to issues sold outside the counitiv of the borrower:foreign, if sold in one nationial market; international, ifand the World Bank and IDA. As of June 30, in more thati one.

Foreign Bonds: the United States 107

form of public offerings. The decline in borrow- borrowers in largest amounts raised in the USing by industrialized countries was due to a de- market. The average yield on publicly offeredcrease in borrowing by Canadian borrowers, bonds by industrialized countries in the US in-down from $5,716 million in 1976 to $2,903 creased from 8.18 % in the first quarter to 8.76%million in 1977. Other industrial countries which in the fourth quarter.raised large sums in the US market were Sweden Developing countries borrowed $817 million($357 million), Japan ($350million), andNorway in the US during 1977, 19% above the $688($315 million). During 1976, borrowers from million they raised in 1976. Large amounts wereFrance ($630 million), Australia ($415 million), raised by borrowers from Israel ($280 million),and Japan ($293 million) had followed Canadian Venezuela ($250 million), and Mexico ($200

World Bank Borrowings-Fiscal Year 1978*In millions)

Currencx of US dollar("Issule issue eqctivalents

Public OfferingsGermany,

Flederal Republic of 6% eight-year bonds, due 1985 DM300.0 129.15.75 % 12-year bonds, due 1987/90 DM500.0 233.4

Japan 7% 15-year bonds, duel 1983/92 Y30.000.0 113.06.80% 15-year bonds, due 1983/92 Y50,001.0 203.7

Switzerland 4.50% 15-year bonds, due 1992 SwF150.0 67.3United States 7.125% five-year notes, due 1982 $250.0 250.0

7.75%c 10-year notes, duel 1987 S250.0 250.08.35°/c 25-year bonds. due 2002 $250.0 250.0

Eurobond Market 6.25% seven-year bonds, due 1984 Y20.000.0 75.4

Total Public Offerings 1,571.9

Placementswith Central Banks and GovernmentsGermany,

Federal Republic of 6.25% note, due 1982 DM250.0 109.36.50% note, due 1983 DM250.0 116.7

Japan 6.63% yen obligations, due 1984 Y30,000.0 116.96.14% yen obligation, due 1984 V30,000.0 137.0

Libya 7.50% seven-year bonds, due 1984 f.l00.00 40.1International'12 6.95% two-year bonds, due 1979 $350.0 350.0

7.75% two-year bonds, due 1980 $350.0 350.0

Total placements with Cent-al Banks and Governments 1,220.0

OtherGermany,

Federal Republic of 6.95% loan, due 1992 DM200.0 87.55.50% notes, due 1982 DM150.0 64.55.15% loan, due 1979 DM150.0 65.26.25% loan, due 1987 D MN1 00.0 43.56.90% loan, due 1988/92 DM200.0 88.56.125% notes, due 1985 DM200.0 88.54.20% loan, due 1979 DM200.0 93.3

Switzerland 5.375% notes, due 1984 SwF200.0 83.55% loan, due 1983 SwFlOO.0 44.25% loan, due 1983 SwF75.0 33.84.50% notes, due 1984 SwF300.0 134.0

Total of Other Placements 826.5Add: Interest Subsidy Fund 8.50% loan, due 1978/2001 17.8

Total Borrowings, Fiscal 1978 3,636.2

*A pLiblic offering of $600 tnillion of the Bank's bonds anid notes in the US market on April 19. 1977 was credited to the$4,200 million marketing program for fiscal 1978. However, settlement on these bonids and notes was in May 1977, andthe issues were included in the Antnaul Report for fiscal year 1977.

'B aased on oflicial rates at time of borrowing.') These two-year bond issues were placed with central banks, government agenicies, and with internationial organiizations.

108 Borrowvings and Finance

million). All US issues by developing countries ers from Brazil ($119 million), Venezuela ($83were made by the central government or a gov- million), and Mexico ($78 million). All publicernment agency. The initial offering yield on offerings by developing countries were madepublicly offered bonds by developing countries during the fourth quarter, and the average initialvaried, and ranged from 7.90% to 9.31%. offering yield was 6.97%. All foreign bonds

International organizations borrowed $1,917 issued in Japan by industrialized and developingmillion in the US during 1977, somewhat lower countries were by governments or government in-than the $2,275 million raised in 1976. As in stitutions. International organizations borrowedprevious years, the World Bank borrowed the $549 million in Japan, $434 million (79%) bylargest amount, raising $1,350 million; that sum the World Bank.accounted for two-thirds of all borrowing by Funds were also raised by foreign borrowersinternational organizations. The average initial in the following national markets: Germanyoffering yield on publicy offered bonds by the ($1.148 million), the Netherlands ($274 mil-World Bank was 7.70% during calendar 1977. lion), Saudi Arabia ($270 million), Lufxembourg

($71 million), France ($62 million), Belgium

Foreign Bonds: Other Markets ($43 million), Libya ($41 million), Italy ($15million), and Trinidad and Tobago ($1 I million).

Borrowing by foreign borrowers in the Swiss In national bond markets, international or-capital market during 1977 also declined, from ganizations borrowed $4,599 million (30%), the$5,444 million in 1976 to $4,705 million. The largest amount raised by any type of borrower.decline was in private placements, which Large sums ($3,317 million) were borrowed bydropped over 20%, from S3,948 million to central governments (21%); public nonfinancial$3.088 million. Public offerings increased enterprises, $2,333 million, or 15%; and privateslightly, from $1,495 million to $1,617 million. nonfinancial enterprises, $2,112 million, or 14%.

Almost three-fourths of all bonds issued in During 1976, the largest amounts were raisedSwitzerland during 1977 were by borrowers from by public nonfinancial enterprises, $6,144 mil-industrialized countries. The largest sums were lion, or 33% ;international organizations, $5,178raised by borrowers from France ($520 milLion), million, or 27%; and private nonfinancial enter-Austria ($479 million), Norway ($379 million), prises. $2,818 million, or 15%c.and Japan ($362 million). During 1976, the larg- Over 60%/G of all foreign bonds were issuedest amounts were borrowed by France ($871 by borrowers whose main purpose was classifiedmillion). Japan ($559 millicn), and Denmark as general purpose ($4,937 million) and inter-($427 million). The average initial offering yield national organizations ($4,599 million). Duringon publicly offered bonds by industrialized coun- 1976, half of all funds raised through foreigntries declined from 5.38% in the first quarter to bond issues went to international organizations4.61 % in the fourth quarter of 1977. ($5,178 million) and public utilities (S4,966

Borrowing in Switzerland by developing coun- million).tries increased from $171 million in 1976 to Over 90% of all foreign bonds (S14,649 mil-$455 million in 1977. Over three-fourths of all lion) were straight issues. Convertible bondsborrowing by developing countries was by bor- totaled S226 million and were almost all issuedrowers from Mexico ($236 million) and Spain by Japanese borrowers. "Special" placements of($127 million). The average initial offering yield international development institutions with cen-on publicy offered bonds by developing countries tral banks. monetary authorities, and govern-during 1977 was 5.37%. ments totaled $347 million. Floating rate notes

International organizations raised $759 mil- totaled $67 million and were issued in Germanylion in the Swiss market, 85% of which was by ($13 million) and Switzerland ($54 million).the World Bank (S644 million). Borrowers un- Over half of all foreign bonds issued duringallocated by country borrowed S57 million. 1976 and 1977 had an original maturity of over

Foreign bonds issued in the Japanese capital 10 years. The highest concentration in 1977 wasmarket increased from $287 million in 1976 to in the over 10-15 year range ($3,365 million),$1,394 million in 1977. Foreign issues in Japan compared with 1976, when the highest concen-totaled $42 million in the first quarter of 1977, tration occurred in the over 15-20 year rangebut had increased to S896 million by the fourth ($3,923 million). The longer maturities in 1976quarter. reflect the larger amount of funds raised in the

Six industrialized countries borrowed a total US market during that year rather than a short-of $406 million during 1977. Initial offering ening of maturities during 1977.yields declined from the 8.6% obtained by theCanadian Province of Manitoba during the first International Bondsquarter to the 6.83% initial offering yield se-cured by the Government of New Zealand in International bonds issued during 1977 to-November. Developing countries secured $438 taled S19,335 million, 26% above the $15,368million, the largest amounts raised by borrow- million recorded during 1976. The increase in

Internticonal Bonids 109

Borrowing in International Markets(USS imillions. Calendar years.)

1976 1977 1978MIm,

Foreign Foreign Foreignand inter- Euro- and inter- Euro- and inter- Euro-national currency national currency national currencybonds credits Total bonds credits Total bonds credils Total

tndustrialized countries 23,214.7 8,307.3 31,522.0 22,137.4 11,055.1 33,192.5 13,060.6 10,965.3 24,025.9

Developing countries 2,251.7 17,303.4 19,555.1 4,406.9 20,246.0 24,652.9 3,013.6 14,851.6 17.865.2Oil-exporting (-1 (243.6) (243.6) (52.1) (1,559.6) (1,611.7) (-3 (535.5) (535.5)High- and Lupper-

middle income (1,097.1) (9,474.0) (10,571.1) (2,591.9) (9,803.0) (12,394.9) (1,721.5) (6.952.8) (8,674.3jIntermediate- andlower-middle income (1,154.6) (6,943.7) (8,098.3) (1,762.9) (8,330.8) (10,093.7) ( 1,292.1 ) (6,259.0) (7,551.1

Low-income (-) (642.1) (642.1) (-j (552.6) (552.6) (-) (1,104.3) (lIl04.3)Centrally planned

countries 72.0 2,371.4 2,443.4 249.2 2,566.0 2,815.2 30.0 1,543.6 1,573.6

Internationalorganizations 8,240.8 377.0 8,617.8 6,980.2 197.0 7,177.2 2,488.2 10.0 2,498.2

Others 516.9 388.6 905.5 1,130. 2 85.0 1,215.2 235.8 175.0 410.8

Total 34,296.1 28,747.7 63,043.8 34,903.9 34.)49.1 69,053.0 18,828.2 27,545.5 46,373.7

First six months ottly.Prelimintary.

borrowing during 1977 was reportedly linked to lion. Twenty-one developing countries borrowedthe high liquidity of the market. Market reports during the year, compared with 15 in 1976, thusalso suggested that funds accruing to investors suggesting increased access to the internationalfrom interest and principal repayments of pre- bonds market by developing countries duringviously issued international bonds were often times of high market liquidity. It must be noted,reinvested in new issues in the international however, that almost 50% of the funds develop-market. It has been estimated that interest and ing countries raised in the international marketprincipal repayments due in 1977 were about went to borrowers from Mexico (S748 million)$6,300 million. Public offerings in the interna- and Brazil ($581 million). borrowers who havetional market during 1977 totaled $15,425 mil- made frequent use of the market in past years.lion (80%);): private placements amounted to Developing countries borrowing for the first$3,910 million (20%). time in 1977 were the United Arab Emirates

Two-thirds of all international bonds, $12,975 ($42 million). Bolivia ($15 million), and Saudimillion, were issued by industrialized cotLntries. Arabia ($10 million). The largest issues by de-In percentage terms, this is slightly below the veloping countries were a $100 million public1976 amounts, when industrialized countries offering for the Mexican borrower, Nacionalsecured 70% of all international bonds ($10,829 Financiera, at a spread of 1% over Londonmillion). Borrowers from six industrialized coun- Interbank Offered Rate (LIBOR) for 15 years,tries accounted for about two-thirds of the 1977 and a $100 million offering by the Republic ofissues: Canada ($1,945 million), United King- Venezuela for seven years at 8% with an initialdom ($1,584 million), Norway ($1,366 million). offering yield of 7.94%.the United States ($1.313 million). Japan ($1,165 International organizations borrowed $2,382million), and France ($1,113 million). During million in the international market during 1977,1976. borrowers from Canada ($3,005 million), 22% below the $3,063 million borrowed inFrance ($1,316 million), and Japan ($1,156 1976. The World Bank was the largest borrow-million) raised the largest amounts. The largest er. raising $725 million, of which $650 millionsingle transaction recorded during 1977 for a was in the form of 'special" placements withborrower from an industrialized country was a central banks. monetary authorities, and govern-two-tranche public offering of $300 million for ments. The largest single transaction by an inter-Citicorp Overseas Finance Corp. N.V. (the national organization was a two-tranche. $500Netherlands), guaranteed by its US parent com- million public offering by the European Eco-pany. Citicorp. The $100 million three-year nomic Community. The $200 million tranchetranche had an initial offering yield of 6.64%, was for five years, with an initial offering yieldwhile the S200 million tranche carried a 6.95% of 7.60%. The $300 million tranche was forinitial offering yield for four years. seven years at an initial offering yield of 7.79%.

Developing countries borrowed $2,689 mil- Centrally planned economies and organiza-lion in the international market during 1977, tions raised $249 million during 1977, moremore than double the 1976 total of $1,292 mil- than triple the $72 million borrowed in 1976.

11() Borrowings and Finance

Hungary borrowed $175 million and Poland issue. Both offerings had an original maturity$75 million. of seven years.

Other borrowers, unallocated by country, The British pound sterling was used in the in-raised $1,040 million, significantly higher than ternational market for the first time since 1974.the $112 million borrowed during 1976. Eighty- All issues were public offerings and totaled $221five percent of this amount ($883 million) was million. The offerings were made by the Euro-borrowed by Shell International Finance N.V. pean Coal and Steel Community, the Europeanwith a joint guarantee by Shell Petroleum N.V. Investment Bank, and several British borrowers.and Shell Petroleum Co. Ltd. The largest cor- All issues carried an optional payment provi-porate issue ever offered on the international sion in US dollars.market was a 12-year S500 million offering in Ten additional currencies were used in theDecember by Shell at an initial offering yield international market during 1977. They were:of 8.22%. Canadian dollar ($654 million); Netherlands

The US dollar continued to be the most widely guilder ($423 million); Hong Kong dollar ($160used currency in the international market, with million); Kuwaiti dinar ($109 million); Bahrain$12,281 million, or 64% of the total market. dinar ($104 million); Saudi Arabian riyal ($81The use of the US dollar in the international million); United Arab Emirates dirham ($37 mil-market declined during the fourth quarter to lion); the European unit of account ($34 mil-5()% of all international bonds ($2,096 million). lion); Australian dollar ($11 million); and theThis decline was reportedly linked to exchange Venezuelan bolivar ($5 million).rate uncertainties. Over 80% of all dollar-de- Private nonfinancial enterprises borrowednominated international bonds were issued by $5,397 million (28%) of all international bonds.industrialized countries ($8.425 million) or in- Large amounts were also raised by public non-ternational organizations ($1,877 million). De- financial enterprises, $2,800 million, or 14%;veloping countries issued 8% ($965 million) of central governments, $2,519 million, or 13%;all dollar-denominated bonds. deposit money banks, $2,462 million, or 13%;

The average initial offering yield on pub- and international organizations, $2,382 million,licly offered dollar-denominated bonds issued or 12%. During 1976, the largest sums wereby industrialized countries declined from 8.23% raised by international organizations, $3,063in the first quarter of 1977 to 7.90% in the third million, or 20%; private nonfinancial enterprises,quarter, before rising during the fourth quarter $2,989 million, or 19%; public nonfinancialto 8.48%. The average initial offering yield of enterprises, $2,207 million, or 14%; and depositpUblic bonds issued by developing countries in money banks, $2,003 million, or 13%.US dollars varied during the year from 8.61%, Borrowers whose main purpose was banking9.03%, 8.86%, and 9.22%, for the first, second, and finance raised the largest amount of funds,third, and fourth quarter, respectively. S5,519 million, during 1977. Borrowers whose

One-fourth of all international bonds, $5,104 main purpose was industry borrowed $3,637million, were denominated in Deutsche marks. million, or 19%, and borrowers with a generalThis was significantly higher than the previous purpose raised S3,126 million, or 16%. Duringyear when $2,821 million (18%) of all inter- 1976, the most active borrowers were thosenational bonds were denominated in Deutsche whose purpose was banking and finance, $4,855marks. During the fourth quarter of 1977, million, or 32%; international organizations,Deutsche mark-denominated bonds amounted $3,063 million, or 20%; industry, $2,848 mil-to 39% ($1,628 million) of all international lion, or 19%; and general purpose, $2,228 mil-bonds. Developing countries issued $1,307 million, or 14%.lion, or 26%, of bonds. Over half of all international bonds, $10,181

The average initial offering yield on publicly million, had an original maturity of over 5-10offered Deutsche mark-denominated bonds by years. During 1976, international bonds with anindustrialized countries declined from 6.91% in original maturity over 5-10 years totaled $8,983the first quarter of 1977 to 5.93% in the fourth million, or 58%. There appeared to be somequarter. The average initial offering yield for lengthening in maturities in 1977. Bonds withsimilar bonds issued by developing countries de- an original maturity over 10-15 years increasedclined over 100 basis points during the year, from $1,665 million in 1976 (11%) to $3,820from 8.45% in the first quarter, to 7.08% in million in 1977 (20%).the fourth quarter. Four-fifths of all international bonds, $15,648

The Japanese yen was used for the first time million, were straight issues. Convertible issuesin the international market during 1977. The totaled $1,028 million, 36% above the $754European Investment Bank and the World Bank million issued in 1976. Floating rate notesmade public offerings of Y10,000 million ($36 amounted to $1,810 million, 50% higher thanmillion) and 1,20,000 million ($75 million), re- the $1,208 million recorded in 1976. Spreadsspectively. Initial offering yields were 7.12% on ranged from the LIBOR on six-month Euro-the EIB issue and 6.16% on the World Bank dollars to 1.25% above that rate.

Syndicated Euirocurrency Credits III

Bond Markets-1978 Mexico ($247 million).International organizations borrowed $1,428

Borrowing in foreign and international bond million durina the first six months of 1978,markets during the first half of 1978 totaled roughly equivalent to the S1,404 million raised$18,828 million, 7% above the $17,496 million during the first half of 1977. The Europeanborrowed during the first half of 1977. Borrow- Investment Bank was the most active borrower,ing activity was fairly evenly split between the raising $529 million. The World Bank borrowedinternational market and national markets. For- $350 million through a private placement ofeign bonds totaled $9,603 million, significantly two-year notes with central banks and monetaryabove the $7,029 million raised during the authorities.first six months of 1977. International bonds The most widely used currency in the inter-amounted to $9,226 million, an 11% decline national market during the first half of 1978from the $10,468 million recorded during the was the US dollar continued exchange ratefirst half of 1977. fluctuations, noted in the last few months of

Foreign bonds issued in the United States dur- 1977. reduced the overall volume of dollar-de-ing the first half of 1978 totaled $3,640 million. nominatcd bonds, however. International bondsabout the same as the $3,689 million recorded denominated in US dollars totaled $4,595 mil-in the first six months of 1977. Eighty-nine per- lion. almost half of all international bonds.cent ($3,275 million) of all foreign bonds issued DuLing the first half of 1977. two-thirds of allin the United States were by industrialized coun- international bonds ($6,898 million) were de-tries. Borrowers from Canada raised the largest nominated in US dollars. The second most wide-amount of funds, $1,780 million. This amount ly uLsed currency continued to be the Deutscheincludes a three-tranche public offering by the mark. Deutsche mark-denominated bonds to-Government of Canada that totaled $750 mil- taled S3,600 million, 39% of the total. Thislion. Large amounts were also raised by borrow- amount is over 50% above the $2.352 millioners from the United Kingdom ($525 million) recorded during the first half of 1977. Develop-and Norway ($350 million). ing countries secured 27% of all Deutsche mark-

Forty-one percent ($2,453 million) of foreign denominated bonds ($983 million). Only 11 %bonds issued in other national markets were ($520 million) of dollar-denominated bondsraised in Switzerland. This amount was 156% were issued by developing countries.above the $2,127 million borrowed during thefirst half of 1977. Large sums were also bor-rowed in the Japanese market, where foreign Syndicated Eurocurrency Creditsborrowers raised $2,319 million, over 20 times Borrowings in the form of Eurocurrency cred-the amount secured during the first half of 1977 its totaled $34,149 million in 1977, a 19% in-($115 million). Foreign bonds were also issued crease over the 1976 total of $28,748 million.in the following national markets: Germany Of this total, developing countries accounted for($599 million); the Netherlands (S223 million); 59% ($20,246 million), industrialized countriesSaudi Arabia ($215 million); Luxembourg ($ 1 00 accounted for 32%c ($11,055 million), centrallymillion); and France ($54 million). planned countries and organizations accounted

International bonds totaled $9,226 million, for 86,/c ($2,566 million), international organiza-almost two-thirds of which were issued by indus- tions accounted for I % ($200 million), andtrialized countries ($5,849 million). Borrowers other borrowers, unallocated by country. ac-from Norway ($816 million). Canada ($728 mil- counted for less than I % ($ 1 00 million).lion), the United States ($557 million), and Japan Developing countries borrowed $20,246 mil-($525 million) raised the largest amounts. Dur- lion in publicized Eurocurrency credits, an in-ing the first half of 1977, the most active bor- crease of $2,943 million, or 17%, over 1976.rowers were from Canada ($1,273 million), A large portion of this increase was accountedNorway ($850 million), the United Kingdom for by capital-surplus, oil-exporting countries,"'2

($726 million), and the United States ($674 which borrowed $1.560 million in 1977, com-million). pared with $200 million in 1976. Six countries

Developing countries continued to increase borrowing large amounts in 1977 were Mexicotheir use of the international bond market as a ($2,895 million), Brazil ($2,341 million), Spainsource of external funds. They raised $1,785 ($1,880 million), Iran ($1,761 million), Vene-million during the first half of 1978, a 41% in- zuela ($1,650 million), and the United Arabcrease above the $1,261 million they borrowed Emirates ($1,037 million).during the first six months of 1977. The largestamounts were raised by borrowers from Brazil($373 million), Venezuela ($301 million), Alge-ria ($275 million), and Mexico ($233 million).During the first half of 1977, the largest sums Tihe category, capital-surptus, oil-exporting countries, in-

were borrowed by Brazil ($312 million) and Arab Emiriates.


Four countries-Cyprus ($30 million), Fiji amounts were also raised by borrowers whose($10 million), Liberia (S30 million), and Mauri- purpose was public and community services,tius ($37 million) raised syndicated loans in the $1,973 million, or 18%; banking and finance,Eurocurrency market for the first time. $1.726 million, or 16%; petroleum and natural

Among the developing countries, public non- gas, $1,364 million, or 12%; and public utilities,financial enterprises borrowed S7,221 million $837 million, or 8%.(36%). Large amounts were also raised by cen- Centrally planned countries and organiza-tral governments, $5,541 million, or 27%; other tions borrowed S2,566 million during 1977, anpublic financial institutions, $2,949 million, or amount slightly above the $2,371 million bor-15%; and private nonfinancial enterprises, rowed in 1976. The largest amounts were raised$2,147 million, or 11%. by the International Investment Bank, $1,100

Borrowers in developing countries whose pur- million, or 43 %, and the Democratic Republic ofpose was classified as "general" raised the largest Germany, $692 million (27%). Smaller amountsamount of funds during 1977, $6,500 million, were raised by Hungary ($350 million), Bulgariaor 32%. Borrowers whose purpose was banking ($245 million), Czechoslovakia ($150 million),and finance borrowed $4,369 million, or 22%. Poland ($19 million), and Cuba ($10 million).Large amounts were also raised by borrowers Other borrowings in 1977 included $197 mil-whose purpose was industry, $3,507 million, or lion for international organizations (down $18017%; public utilities, $2,539 million, or 13%; million from 1976), and S85 million for cor-and petroleum and natural gas, $1,717 million, porate borrowers whose activities could not beor 8%. allocated by country (down $304 million from

Industrialized countries borrowed $11,055 1976).million in the Eurocurrencv credit market, an Maturities on Eurocurrency loans appear toincrease of $2,748 million. or one-third above have lengthened in 1977. Over half of all the1976. Three countries borrowed large amounts: Eurocurrency loans raised during 1977, $22,218the United Kingdom ($2,476 million), France million, or 65%, had an original maturity of($1,865 million), and Sweden ($1,376 million). more than five through seven years. During

Central governments borrowed $4,176 mil- 1976, Eurocurrency loans with an original ma-lion (38%) of the total for industrialized coun- turity in this range totaled onlv $1 1,125 mil-tries. Large amounts were also raised by private lion (39%), with a larger percentage of loans,nonfinancialenterprises, $2,406 million, or 22%; $13,328 million (46%), having an original ma-public nonfinancial enterprises, $2,214 million, turity of more than three through five years.or 20%; and other public financial institutions, The interest rate for six-month Eurodollar$1,195 million, or 11%. deposits fluctuated between 5.44% and 6.06%

Borrowers in industrialized countries with a during the first half of 1977; it then showed ageneral purpose borrowed the largest amount of steady increase through the remainder of thefunds, $3,209 million, during 1977. Large year to a 7.50% rate in December.

Executive Directors

Executive Directors two issues of two-year US dollar bonds (offeredonly to governments, central banks, and official

With the exception of certain powers specifi- agencies) totaling $3,618.4 million. In view ofcally reserved to them by the Articles of Agree- the Project Preparation Facility's satisfactoryment, the Governors have delegated their powers performance in meeting, under special circum-for the conduct of the general operation of the stances, a need to assist member countries in theBank to a Board of Executive Directors, which preparation of projects for Bank and IDAperforms its duties on a full-time basis at the financing, the Executive Directors approved aBank's headquarters. There are 20 Executive commitment authority of $10 million additionalDirectors: as provided in the Articles of Agree- to the S12.5 million alreadv authorized. Theyment, five are appointed by the five members also met informally as frequentlv as required;having the largest number of shares, and the topics covered included the future role of therest are elected by the other members. Bank, valuation of the Bank's capital, and the

Policy is broadly decided by the Executive Bank's policy and practices in the managementDirectors within the framework of the Bank's of its liquid assets.Articles of Agreement. The Directors consider With the considerable broadening of interestand decide on the loan/credit proposals made among private financial institutions in the co-by the President. They are also responsible for financing of projects with the Bank, the Execu-presentation to the Board of Governors at its tive Directors approved the quarterly publicationAnnual Meetings of an audit of accounts, an of the operational summary of proposed Bankadministrative budget, and the Annual Report and IDA projects that have reached the stage ofon the operations and policies of the World active consideration. The dissemination of thisBank, and any other matter that, in their judg- report to subscribers outside the UN svstemment, requires submission to the Board of Gov- should be useful in mobilizing additional re-ernors at the Annual Meetings or otherwise. sources for the Bank's borrowers.

Policy decisions must be taken by the Direc- With their ongoing attention to operationstors in a number of major areas each year: allo- evaluation in the Bank, the Executive Directorscation of the Bank's net income, the Bank's considered the second annual report of thelending program, administrative budgets, staff Director-General, Operations Evaluation; thecompensation, and the Bank's research program. third annual review of project performanceAmong other policy matters in fiscal 1978, the audit results; and approved the fiscal 1978-79Executive Directors dealt with policy on min- operations evaluation work program. Othererals and energy in the developing countries, annual reports with which the Directors dealtlending for tourism, transfers to IDA, Bank related to project implementation and supervi-liquidity, terms of Bank lending, and the role sion, the activities of the Joint Audit Committee,and use of consultants in projects; approved the Bank's financial statements, and the staffeligibility criteria and allocation guidelines for retirement plan.IDA's Fifth Replenishment period, grace periods The Executive Directors approved an agree-and final maturities on fiscal 1978 Bank loans, ment between IDA and the European Commun-and the five-year program of the Economic ities whereby IDA will administer, on behalf ofDevelopment Institute; reviewed Bank disburse- the Communities and their nine member coun-ments, liquidity (notably the amount of liquid tries. a "Special Action Fund," totaling $385funds that the Bank should prudently hold), million, designed to meet the immediate needsand the timing of Bank transfers to IDA. of low-income countries, especially those whose

During fiscal 1978, the Executive Directors development is being hampered by the lack ofmet on 59 occasions in formal session. They re- foreign exchange. Also, they considered a pro-viewed and approved 137 Bank loans and 99 posed agreement between the United NationsIDA credits, plus 14 grants for international Development Programme and the Bank, and aagricultural research and one grant for control proposed agreement with the International Fundof onchocerciasis in West Africa. Also reviewed for Agricultural Development, and approvedand approved were 24 borrowing transactions in their dispatch to the Governors for their vote.Germany, Libya, Japan, Switzerland, and the Both proposals were later agreed to by theUnited States, as well as one Euro-yen issue and Governors.

114 Executive Directors

The Directors participated in the Develop- of nominating a firm of private, independent,ment Committee meeting held in Washington. internationally established accountants to con-They also participated in a meeting of Senior duct the annual audits of the Bank, IFC, andOfficials in Mexico City, and in meetings of IDA, to discuss with them the scope of theirworking groups of the Committee on Access to examination, to review with them the annualCapital Markets and on Development Finance audited financial statements and the opinionsand Policy. thereon, and to report to the Executive Directors.

The Directors received a current status report In addition, through frequent meetings with theon a major study of development issues that the Bank's senior financial officers, the CommitteeBank is undertaking and which will be submitted seeks to ensure that the Bank's financial affairsto the Governors for the 1978 Annual Meetings. are properly conducted.The study, entitled "World Development Re- It is also charged with the responsibilitv ofport," is the result of discussions at various in- satisfying itself that the Bank's internal auditternational fora about the need to undertake a and operations evaluation are adequate and effi-comprehensive analysis of major development cient. It reviews the work programs of theissues, strategies, and problems in order to pro- Internal Auditing and Operations Evaluationmote a better understanding of them; a more Departments, the work in progress, desirablecoordinated international approach to develop- standards, and procedures of reporting. In linement problems; and the coordination of policy with its expanded terms of reference, it reviewsactions. The report will be discussed by the most papers produced by the Operations Evalua-Directors carly in fiscal year 1979. As well, they tion Department, and identifies those giving risereceived reports on the Tenth World Energy to policy issues that can be considered by theConference and the Ministerial Meeting of the Executive Directors. Since Project PerformanceWorld Food Council. Audit Reports are prepared on all completed

The Directors also expressed their apprecia- projects, the volume of reports to be consideredtion to the almost 4,500 men and women staff by the Committee is increasing. To facilitate itsmembers of the Bank for their unswerving dedi- work, the Committee has established informalcation to the institution's ideals. Thev noted that working groups, which can be attended by othertheir continued professionalism has made it pos- interested Executive Directors, to review varioussible for the Bank to increase its operations with- reports or groups of reports.out decreasing the attention paid to economic The Committee provides a continuing channelanalysis and project appraisal, supervision, and through which the internal and external auditorsevaluation. may communicate with the Executive Directors

A list of all Executive Directors and Alternate should the need arise. The Committee also peri-Executive Directors, showing their voting power odically reviews the adequacy of the flow ofand the countries they represent, with notations financial information to the Executive Directorsof changes since the last regular election of in order that the Board may discharge properlyExecutive Directors, appears on page 183. its reponsibilities with respect to the financial

policies of the Bank. It meets as frequently asnecessary, but at least once a month. The Coni-

Joint Audit Committee mittee consists of six Executive Directors ap-pointed by the Board for a term of two years

The Joint Audit Committee was established in after each regular election of Executive Direc-1970, essentially to represent the Bank's share- tors. In December 1976, Jacques Henri Wahlholders in maintaining vigilance over the sound- was selected to serve a second term as Chairmanness of the Bank's financial practices and of the Committee. He was succeeded in Juneprocedures. Its responsibilities include the duty 1978 by Timothy T. Thahane.

Statistical Annex

Page

General Notes to Annex Tables ................. .. ............. .......... ....... .. 116

Table1 Selected Economic Indicators for Developing and

Industrialized Countries-Regional Summary ............................... 118

2 World Exports, by Origin and Destination, 1966-77 ....... 120

3 The Flow of Financial Resources from DAC Countries toDeveloping Countries and Multilateral Institutions, 1970-77 ................. ............ 122

4 96 Developing Countries-External Public DebtOutstanding (including Undisbursed), by Region, 1970-76 ................................. 123

5 96 Developing Countries-External Public Debt Outstanding,by Country and Type of Creditor, December 31, 1976 ... 124

6 Service Payments on External Public Debt as Percentage ofExports of Goods and Services, 1970-76 .. .............. ............ .......... ....... 126

7 Projected Debt Service on External Public Debt Outstanding,by Region and Type of Creditor, as of December 31, 1976 ..................... 128

8 External Resource Flows and Service Paymentson External Public Debt, by Region, 1970-76 ................................. ..... . 130

9 Average Terms of Loan Commitments and Grant Elementof Loans and Grants, by Region, 1970-76 ......................... ................ 131

10 Foreign and International Bond Issues, by Market andCountry of Borrower Entity, 1975-77, First Half 1978 ............................. ....... 132

11 Initial Offering Yields of Publicly Offered Foreign andInternational Bonds, 1975 to Second Quarter 1978 ...................................... . 135

116 Statistical Annex

General Notes to Annex Tables

The tables of this Annex present data on selected Comoros, Congo (People's Republic of the), Easteconomic indicators, world trade, the flow of financial African Community, Ethiopia, Gabon, Gambiaresources, external public debt, and international capi- (The), Ghana, Guinea, Ivory Coast, Kenya, Lesotho,tal markets. As in past Annual Reports, most of the Liberia, Madagascar, Malawi, Mali, Mauritania,tables are organized on geographic lines. Mauritius, Niger, Nigeria, Rwanda, Senegal, Sierra

In Table 1. the basic series on selected economic Leone, Somalia, Sudan, Swaziland, Tanzania,indicators is based on data stored in the IBRD Socio- Togo, Uganda, Upper Volta, Zaire, Zambia.economic Data Bank, which are mainly obtained from East Asia and Pacific-China (Republic of), Fiji,World Bank country economic reports, supplemented Indonesia, Korea (Republicof), Malaysia, Papuaby data from national and other international publica- New Guinea, Philippines, Singapore, Thailand.tions. The indicators presented in this table are the Latin America and the Caribbean-Argentina, Bar-same as those of last year. Country coverage includes bados, Bolivia, Brazil, Chile, Colombia, Costa Rica,the 96 countries listed below, plus 12 developing coun- Dominican Republic, Ecuador, El Salvador, Guate-tries listed in the Note to Table 1. mala, Guyana, Haiti, Honduras, Jamaica, Mexico,

In Table2. the data on world trade are classified by Nicaragua, Panama, Paraguay, Peru, Trinidad andorigin, destination, and geographic regions, principally Tobago, Uruguay, Venezuela.on the basis of data published in the UNI Monthly Alorth Africa and Middle East-Algeria, Bahrain,Bulletin of Statistics. Egypt (Arab Republic of), Iran, Iraq, Jordan,

In Table3.the data on the flow of financial resources Lebanon, Morocco, Oman, Syrian Arab Republic,have been provided by the Development Assistance Tunisia, Yemen Arab Republic, Yemen (People'sCommittee (DAC) of the Organisation for Economic Co- Democratic Republic of).operation and Development (OECD). The figures for SouthAsia-Afghanistan, Bangladesh, Burma, India,1977 are drawn from the first public statement concern- Nepal, Pakistan, Sri Lanka.ing development assistance in that year; the figures More advanced Mediterranean countries - Cyprus,are, therefore, subject to revision. Data for earlier Greece, Israel, Malta, Portugal, Spain, Turkey,years incorporate revisions of figures previously pub- Yugoslavia.lished for those years.

The 17 member countries of the Development Assist-ance Committee are: Australia, Austria, Belgium, Not all of the 96 countries have been reporting forCanada, Denmark, Finland, France, Germany (Federal the full historical period, 1970-76, covered by theRepublic of), Italy, Japan, Netherlands, New Zealand, tables. Where individual country reports are lackingNorway, Sweden, Switzerland, United Kingdom, and for certain years, estimates have been made by theUnited States. World Bank's staff in order to present a consistent

In Tables 4 through 9. the principal source of data on series of data.external debt is information received by the World Bank For the purpose of these tables, external public debtfrom its member countries. These data are checked is defined as debt repayable to external creditors inwith and supplemented by information from several foreign currency, goods, or services, with an originalother sources, primarily reporting by creditor countries or extended maturity of more than one year, which ison their lending. The notes on the debt of the Philip- a direct obligation of, or has repayment guaranteed by,pines and Yugoslavia in Table 4 apply to all Tables 4 a public body in the borrowing country. Most militarythrough 9. debts are not reported, although a few countries have

The 96 countries included in the tables are those included such obligations in their data.whose reporting on external public debt issufficientfor The World Bank continues to work in cooperationa reliable presentation of debt outstanding and future with its member countries toward the improvement ofservicepayments.ComparedwithearlierAnnua/lRe,ports, debt statistics. This effort results in many cases in athe coverage has been increased. The classification by broadening of the coverage of the data for both currentgeographical region"'' is as follows: and past periods. Therefore, a comparison with debt

Africa South of the Sahara-Benin, Botswana, tables in the 1977 Annual Report or with the WorldBurundi, Cameroon, Central African Empire, Chad, Development Indicators will show changes in data

(') Note that in these tables Afghanistan is classified under South Asia,while in the discussion ofthe year's activities by region, itisclassifiedunder Europe, Middle East, and North Africa.

Statistical Annex 117

given for past years. The current Annual Report should In Tables 8 and 9, the source of data for grants isbe regarded as the more reliable. Users of the tables on OECD. For grant-like loans, the data sources are OECDexterna I public debt in the 1977 a nd 1978 AnnualRleports and the Inter-American Development Bank (IDB).should be particularly careful in making comparisons, Grants consist of grant and grant-like (loans repayableas apparent increases or decreases in debt outstanding in local currency) contributions;they are on a disburse-are, in many cases, merely the result of improvements ment basis in both tables. The grants included in thesein expanded country coverage or in knowledge. tables comprise: (1) contributions by countries which

In Tables 3 and 8, net flow is defined as disburse- are members of DAC; (2) grants by multilateral agen-ments on loans, grants, and grant-like loans minus cies as compiled by OECD; (3) disbursements by IDBamortization on loans. Net transfer is net flow minus on loans repayable in local currencies. Grants for tech-interest on loans. In Tables 3 and 9, grant element is nical assistance have been excluded. Data for grantsdefined as the face value of loan commitments less the do not include grants from bilateral donors other thandiscounted present value of the future flow of repay- DAC countries, although grantsfrom other sources mayments of principal and interest expressed as a per- have been large to some developing countries. How-centage of face value. The discount rate used is 10%, ever, debt data include obligations to creditors of allthe conventional rate used by OECD in assessing terms. nationalities.

In Table 6, debt service ratios represent service pay- Tables 10 and 11 deal with foreign and interna-ments (amortization plus interest) on external public tional bond issues. In Table 10, 'Foreign bonds" aredebt as a percentage of the exports of goods and all those issued in a single national market. "Interna-services. This definition of the debt service ratio differs tional bonds" are those which are sold in two or morefrom that used in the 1977 AnnualfReport, in which the markets simultaneously.ratio represented service payments on external publicdebt as a percentage of goods and nonfactor services. In Tables 10 and 11, "Other national markets" in-The debt service figures used in the present table are clude the followingcountries: Austria, Belgium, France,those for actual debt service paid (as compiled from Germany (Federal Republic of), Italy, Japan, Luxem-country reports) during the year. If a country did not bourg, Netherlands, Switzerland, United Kingdom,pay the entire amount of contractual debt service dur- Libya, Saudi Arabia, Trinidad and Tobago, Uniteding a year, this may be reflected in a somewhat lower Arab Emirates, Venezuela, and Yugoslavia.debt service ratio than would have been the case if DAC information on capital flows is converted to UScontractual debt service instead of actual service paid dollars by the Secretariat of OECD. Data on debt out-had been used in computing the ratio. Likewise, the standing and service payments for the years 1970-71prepayment of debt service may result in a higher debt were converted to US dollars at the rates in effect dur-service ratio. ing those years, for the most part IMF par values. The

The debt service ratio is, by itself, an inadequate rates used for 1971 and subsequent years are currentand incomplete indicator of a country's debt situation, market rates, or, if valid, IMF par values or centraland international comparisons of these ratios have only exchange rates. For the years 1971-76, capital flowslimited meaning. Many other factors must also be con- and service payments were converted to US dollars atsidered, such as the stability and diversification of the an average rate for the year. Debt outstanding wascountry's export structure, the prospects for future converted at the rate in effect as of the date of the out-growth, the extent to which imports can be reduced standing. Projected debt service was converted to USwithout adversely affectingthe size of foreign exchange dollars at end 1976 rates. However, debts repayablereserves and available compensatory financing facili- in multiple currencies, goods, or services, and debtties, and the debt service record of the country. which has a provision for maintenance of value of theFurther, external public debt constitutes only a part of currency of repayment, are shown at their book values.the total indebtedness of a number of countries, and Information about foreign and international bonds isthus considerably understates the burden of indebted- converted to US dollars using monthly average marketness in some cases. The debt service ratio is only an exchange rates of currency units per US dollar in seriesindication of the importance of debt and debt service "af" in the IMF's monthly publication, Internationalin a country's total foreign exchange situation. Financial Statistics.


Selected Economic Indicators for Developing andIndustrialized Countries-Regional SummaryAverage annuai real growth and shares in Gross National Product (GNP),1961-65, 1966-73, 1974, 1975, 1976, and 1977 (percentages)

Region 1961-65 1966-73 1974 1975 1976 1977(P)

Developing countriesReal rate of growth:Total GNP ........ ......................................... 5.9 6.6 5.5 5.0 6.4 5.4Agricultural production ........................................ . . 3.0 2.7 3.8 5.2 3.2 1.5Manufacturing production ........................................... 8.8 9.5 6.9 2.5 8.4 -

Population ........... ........... ........................ 2.4 2.4 2.4 2.4 2.4 2.3GNP per capita .............................................. ... 3.4 4.1 3.0 2.5 3.9 3.1Gross investment ........... ..................................... 8.0 8.2 17.0 3.4 5.5 -

Share in GNP:Gross investment ................................................. 19.9 21.4 23.9 24.6 24.6 -

Gross national saving ...................................... ....... 18.3 20.4 26.1 23.7 25.5 -

Africa South of the SaharaReal rate of growth:Total GNP ................................................. 3.8 4.5 8.6 3.0 5.2 3.0Agricultural production ...................... ............... 3.0 0.9 6.9 2.0 1.0 3.2Manufacturing production .............................. ....... 9.4 8.5 8.6 -0.1 2.9 -

Population ................................................. 2.5 2.6 2.7 2.7 2.7 2.7GNP per capita ................................................. 1.3 1.9 5.7 0.2 2.4 0.3Gross investment ................................................. 6.3 6.1 18.9 10.5 12.9 -


Gross national saving ........................... .............. 11.1 12.6 22.3 17.4 22.8 -

East Asia and PacificReal rate of growth:Total GNP ................................................. 7.6 7.9 5.5 5.3 9.8 7.8Agricultural production ............................................. 5.3 3.9 4.1 3.6 6.0 1.1Manufacturing production ..................................... ..... 9.4 15.2 6.5 7.0 18.6 9.1Population ............................. .................... 2.6 2.4 2.1 2.1 2.1 2.1GNP per capita ................... 4.9 5.3 3.5 3.2 7.7 5.6Gross investment ........................... ................... 12.1 12.1 19.1 0.7 12.3 10.7

Share in GNP:Gross investment ................................................. 17.2 22.7 27.4 26.6 26.8 27.4Gross national saving .............................................. 13.7 19.1 25.4 23.4 24.9 24.8

Latin America and the CaribbeanReal rate of growth:Total GNP .............................. ................ ... 5.3 6.7 7.7 3.3 5.0 5.3Agricultural production ................. ...................... . 3.8 2.4 5.6 1.8 4.3 3.0Manufacturing production ............... ......................... 5.8 8.5 6.4 1.9 5.1 4.6Population ................................................. 2.9 2.8 2.8 2.8 2.8 2.8GNP per capita ..................... ...... ..................... 2.3 3.8 4.8 0.5 2.2 2.5Gross investment ....... .......................................... 5.1 9.0 18.8 -5.5 3.3 -


Gross national saving ............................................... 19.8 20.2 25.0 20.7 22.0 -

North Africa and Middle EastReal rate of growth:Total GNP ................................................. 7.3 8.3 1.7 11.0 11.9 6.1Agricultural production ............ ............................... 3.6 1.9 10.3 -1.0 8.8 -3.1Manufacturing production ...................................... .... 9.2 10.2 11.9 11.3 13.2 -

Population ................................................. 2.7 2.8 2.8 2.8 2.9 2.9GNP per capita ......... ........................................ 4.4 5.3 -1.1 8.0 8.7 3.1Gross investment .......... .. 4.7 10.1 42.9 39.1 6.5 -

Share in GNP:Gross investment ................................................ 18.4 21.1 20.0 27.1 27.5 -

Gross national saving ............................................... 22.5 28.1 46.3 43.0 45.4 -


Table 1

Region 1961-65 1966-73 1974 1975 1976 1977(P)

South AsiaReal rate of growth:Total GNP ............................................... .. 4.0 3.5 1.4 7.8 2.1 4.5Agricultural production ... .................................. .. 0.9 3.3 -4.5 9.9 -1.8 5.3Manufacturing production .................................. .... .. 9.1 3.7 2.4 3.7 8.9 5.2Population ............................................. .... 2.4 2.3 2.2 2.2 2.2 2.0GNP per capita ........ ................................... . 1.6 1.2 -0.8 5.4 -0.1 2.4Gross investment ......... ........... 8.3 3.2 -1.5 3.8 3.7 -

Share in GNP:Gross investment .............................................. 17.1 16.7 16.9 17.8 17.7 -

Gross national saving ............... .............................. 14.0 14.3 14.2 15.5 16.9 -

Moreadvanced Mediterranean countriesReal rate of growth:Total GNP ................ ........... 7.6 7.1 6.3 2.2 4.7 5.2Agricultural production ............................................. 2.9 3.3 7.6 7.6 4.4 -1.6Manufacturing production ........... .................... ....... . 11.8 10.0 7.4 0.0 7.7 8.2Population ................................................ 1.3 1.4 1.4 1.5 1.5 1.5GNP per capita ....... .................. 6.2 5.7 4.9 0.7 3.1 3.6Gross investment ....................... ......... 12.5 7.3 3.7 -2.8 2.8 -

Share in GNP:Gross investment ............... ................................. 25.0 24.3 26.0 25.5 24.3 -

Gross national saving ................... ................ ... 21.8 22.0 20.4 19.5 19.3 -

Industrialized countriesReal rate of growth:Total GNP . ............................... ............... 5.6 4.9 -0.1 -0.6 4.6 3.9Agricultural production ...................................... ... 2.0 2.1 1.9 4.0 0.5 4.0Manufacturing production ........................... ......... . 6.3 6.0 -0.8 -9.2 10.0 4.1Population ........ ...................... 3................ 1.2 1.0 0.8 0.8 0.8 0.6GNP per capita ................................................. 4.3 3.8 -0.9 -1.4 3.7 3.3Gross investment ...... ........................................ 7.6 6.0 4.3 -14.4 11.1 -

Share in GNP:Gross investment . . ............... ............... .... ... 21.9 22.1 23.7 20.6 21.5 -

Gross national saving . . ............................ .......... . 23.2 27.6 23.7 21.3 21.1 -

Note: All the countries listed below have been included forthe estimates of the real rates of growth of GNP and population. For other indicators, somecountries have been omitted due to lack of data.

Industrialized countries-Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany (Federal Republic of), Iceland, Ireland, Italy, Japan,Luxembourg, Netherlands, New Zealand, Norway, South Africa, Sweden, Switzerland, United Kingdom, United States.

Developing countries-Those listed in the "General Notes to Annex Tables" and those below:East Asia and Pacific-Cambodia, Lao People's Democratic Republic, Western Samoa, Solomon Islands, Viet Nam.Latin America and the Caribbean-Bahamas, Grenada.North Africa and Middle East-Kuwait, Libya, Qatar, Saudi Arabia, United Arab Emirates.

(P) Preliminary.Source: World Bank.

World Exports, by Origin and Destination, 1966-77 Table 2 <

Exports to

Developed Ceoitrally planniedWorld market economies Developing riiarket econoniies economies

Latin Amiericaand( the Middle Other

Total Total Total Caribbean Africa East Asia Total

Anntiual Anntnal Annoiual AirnualExports from US$ millionis Perceritage growth rate Percentage growth rate Perceiitage growth rate Perceirtage Perceiitage Perceintage Percenitage Percenitage growth rate

World(l) (2) (3)

1966-71 annual average ........ 265,393 100.0 12.1 69.3 13.0 19.0 10.6 6.0 3.8 2.4 6.3 10.5 9.41972 ......................... 415,650 100.0 18.7 71.8 20.5 18.0 15.3 5.7 3.5 2.5 5.8 10.2 22.61973 ......................... 576,960 100.0 38.8 71.0 37.1 18.3 40.8 5.4 3.5 2.6 6.2 9.9 34.81974 ......................... 835,580 100.0 44.8 70.1 43.0 20.6 63.1 6.6 3.8 3.4 6.4 8.6 26.71975 ... .. 873,808 100.0 4.6 65.7 -2.2 23.1 17.0 6.7 4.7 5.0 6.3 10.6 28.01976 ..................... 990,467 100.0 13.4 67.4 16.3 22.2 9.4 6.2 4.3 5.1 6.1 9.7 3.41977 (P) ..... ..... ... 1,130,158 100.0 14.1 67.1 13.6 22.7 16.5 6.1 4.6 5.3 6.2 9.3 10.01972-77 annual average ........ 803,770 100.0 21.0 68.3 19.0 21.4 27.5 6.2 4.2 4.3 6.2 9.6 19.9

Developed marketeconomies(3) (0) (0)

1966-71 annual average ........ 188,228 100.0 12.9 76.0 13.7 19.3 10.9 6.3 4.1 2.4 6.2 4.1 10.11972 ..................... 298,570 100.0 18.7 77.2 19.5 17.9 13.4 5.8 3.9 2.6 5.4 4.3 32.11973 ..................... 407.820 100.0 36.6 76.4 35.2 18.1 37.9 5.5 4.0 2.7 5.7 4.8 52.91974 ........... 543,640 100.0 33.3 73.3 27.8 20.9 54.3 6.5 4.5 3.7 6.0 5.2 43.51975 ................. .... 578,786 100.0 6.5 69.5 0.9 23.9 21.6 6.5 5.6 5.7 5.9 6.1 25.01976 ..................... 643800 100.0 11.2 71.3 13.9 22.9 6.4 5.8 5.3 6.0 5.6 5.5 0.61977 (P) ..................... 731,720 100.0 13.7 70.9 13.1 23.7 17.3 5.6 5.8 6.2 5.8 4.9 2.51972-77 annual average ........ 534,056 100.0 18.4 72.5 16.0 21.9 26.2 6.0 5.0 4.9 5.8 5.2 22.9

Developing market economies(') (6) (7)

1966-71 annual average ........ 47,845 100.0 10.6 73.7 10.7 19.9 10.4 6.5 2.7 2.5 8.0 5.5 7.01972 ...... ............... 74,890 100.0 20.3 74.4 21.8 20.6 23.4 7.2 2.3 2.4 8.7 4.6 13.51973 .... ................. 111,080 100.0 48.3 73.3 46.1 20.6 48.5 6.9 2.3 2.5 8.8 4.6 49.31974- 219,940 100.0 98.0 74.5 101.2 21.2 103.5 8.0 2.2 2.9 7.9 3.6 54.61975 .......................... 210,477 100.0 -4.3 70.2 -9.8 23.5 6.2 8.6 2.9 3.6 8.2 4.7 25.11976 ......................... 254,598 100.0 21.0 71.2 22.7 22.9 17.7 8.5 2.4 3.4 8.3 4.0 2.01977 (P) ........................ 291,135 100.0 14.4 71.8 15.3 22.2 11.2 8.1 2.3 3.5 8.2 3.7 6.61972-77 annual average ........ 193,686 100.0 30.2 72.2 29.0 22.1 33.2 7.6 2.4 3.2 8.3 4.1 25.6

Latin America and the Caribbean1966-71 annual average ........ 15,070 100.0 6.8 74.8 6.5 19.0 8.1 17.1 0.7 0.3 0.9 5.6 0.51972 ....... ...... .20,630 . .... . .... 100.0 16.8 73.5 16.6 20.7 20.9 18.6 0.7 0.4 0.9 4.7 18,5 >1973.. ............... 29,040 100.0 40.8 70.9 35.7 21.7 47.4 18.1 1.1 0.8 1.7 6.4 93.81974 ... .... .... 48,510 100.0 67.0 70.2 65.4 23.3 78.9 20.0 1.6 0.9 0.7 5.6 46.81975 ........ ......... . 47,579 100.0 -1.9 66.2 -7.5 25.0 5.2 20.6 2.1 1.4 0.8 8.7 51.1a1976 ........ ... .... 53,147 100.0 16.6 67.7 14.2 23.7 5.8 20.1 1.9 0.9 0.8 7.6 -2.51977 (P) ................... . 62,720 100.0 18.0 65.6 14.4 22.9 14.2 19.4 1.9 0.9 0.8 7.1 11.11972-77 annual average ........ 43,604 100.0 23.3 68.2 20.7 23.2 26.3 19.6 1.5 0.9 0.9 6.9 34.6

Africa(7)1966-71 annual average .... 10,205 100.0 12.0 82.0 10.8 10.2 18.9 1.7 5.0 1.2 2.1 7.0 14.5 Z1972 ~ ....... 14.530 100.0 13.2 80.7 16.4 10.8 -3.4 3.5 3.9 1.0 2.4 7.6 11.1 ~1973 .... ..... 20,650 100.0 42.1 81.5 43.6 11.5 51.6 3.8 5.0 0.9 1.8 6.5 21.81974 .... ... 38,380 100.0 85.9 842 92.0 10.7 71.8 4.7 3.9 0.9 1.3 4.7 34.31975 .33,936 100.0 -11.6 78.3 -21.7 14.3 18.5 6.6 5.5 1.3 0.9 6.6 25.01976- 41,839 100.0 23.3 82.5 29.8 11.9 2.4 5.2 4.3 1.5 0.8 4.7 -12.81977 (P) ..... 45,980 100.0 9.9 86.3 15.0 10.0 -7.6 4.9 3.2 1.2 0.8 3.6 -15.91972-77 annual average, . 32,552 100.0 24.8 82.8 25.9 11.5 24.7 5.0 4.2 1.1 1.1 5.2 11.3

Middle East1966-71 annual average ..... 9,815 100.0 14.2 76.3 14.1 19.2 14.8 1.9 3.3 7.3 6.2 2.5 9.31972.. ~ ......... 19,050 100.0 24. 76.2 25.2 20.2 29.3 4.1 1.6 5.9 8,3 2.5 41.81973- .... ..... 28,980 100.0 52.1 74.4 48.7 20.2 52.3 4.3 1.8 5.7 7.7 2.4 45.31974 .. 85,270 100.0 194.2 76.0 200.4 21.1 207.2 6.1 1.7 4.5 8.7 1.9 133.31975 .... 82,161 100.0 -3.6 71.8 -9.0 22.4 2.6 6.1 2.1 4.8 9.1 2.4 20.61976- ... 98,139 100.0 19.4 70.8 17.7 23.5 25.0 7.5 1.8 4.6 9.3 2.3 15.41977 (P)- . . . 104,160 100.0 6.1 73.7 10.5 23.7 6.9 7.5 1.8 4.8 9.4 2.4 10.21972-77 annual average. 69,627 100.0 41.4 73.3 39.9 22.5 46.7 6.6 1.8 4.8 9.0 2.3 40.8

Other Asia1966-71 annual average ..... 12,363 100.0 11.1 62.8 12.9 30.4 8.1 1.3 3.1 2.6 22.7 6.5 5.11972 .............. 20,040 100.0 25.1 669 28.0 28.4 25.9 1.3 2.6 2.3 21.7 4.5 3.41973~ ... 31,450 100.0 56.9 68.5 60.7 26.4 45.9 1.3 2.0 2.1 20.6 4.0 38.51974 ...... 46.420 100.0 47.6 67.5 45.5 28.3 58.4 2.2 2.4 3.7 19.6 2.8 4.81975 ..... 45,671 100.0 -1.6 64.8 -5.7 31.1 8.1 2.4 3.1 5.3 19.9 3.6 24.21976 ...... .. 60,252 100.0 31.9 67.2 36.8 29.1 23.4 2.2 2.7 5.2 18.6 3.2 18.11977 (P). ........... 71,472 100.0 .18.6 67.2 18.7 29.3 19,5 2.1 2.8 5.6 18.4 3.1 15.91972-77 annual average 45,884 100.0 26.7 67.0 26.5 29.0 28.7 2.0 2.7 4.5 19.4 3.4 18.8

Centrally planned econonmiest 8 ) (9)1966-71 annual average 29,305 100.0 9.4 24.3 9.2 15.2 8.4 3.3 3.2 2.5 4.4 59.9 9.61972 .43,200 100.0 18.6 24.7 18.6 14.1 15.1 2.7 3.1 2.4 3.5 60.5 19,71973-. 57,890 100.0 34.0 27.8 50.5 15.2 44.4 2.4 2.7 2.4 4.0 56.0 23.91974. 71,990 100.0 24.4 32.5 45.6 16.1 31.7 2.7 3.3 3.0 4.8 50.5 12.21975..... 84,546 100.0 17.4 27.3 -1.6 15.8 14,6 3.1 2.9 3.4 4.2 56.3 30.91976 ..... . . 92,069 100.0 8.9 29.0 15.6 15.7 8.8 3.2 2.7 3.5 3.8 54.6 5.71911 (P) ...... .... 101,303 100.0 16.5 27.8 12.0 17,5 29.4 3.4 2.8 3.8 3.9 54.3 15.91972-77 annual average. . 76,166 100.0 19.0 28.4 20.9 16.0 23.0 3.0 2.9 3.2 4.0 54.9 17.4

Ii nocludioig sprecial category exports, ships' stores, honkers, aort other exp)orts whose destiouatioris coud riot be dleterminiied.0)1 Excluding the iritertrade of the centrally frlanrned ecorroriiios of Asia arid tfre exports of tRlsodesia.

(3i Includes the interitarfe of Fedferal Republic of Gernrariy arid Gerirrasi Densocratic Refpublic.(4i Thlis cIassiticatioiri is initeeuded tor statistical conivenisence and does siot necessarily eopress a jiidgrmorrt abrout the stage reaclhed by a paiticular cousitry ini the developmoent process.'5 iii locludes Israel, excludes Torbey.

(6 lcludes Turkey, exclodes Israel.iii Exclurles exports of Rhodesia.(si Exports of the USSR, for wlhich cooritry of destfriratiorr could riot be deterrrriiredf. ore iriclorled in the total exports to the world, developed miarket econiomies, developing market econormies, arid celt rally planned economies.iii Exclonles tire iirtertrade ot the centtrally planned economies of Asia.iP) Prelimiinary.Source: Uniteol Natreroti.


The Flow of Financial Resources from DAC Countries to Table 3Developing Countries and Multilateral Institutions, 1970-77(Amounts in US$000 millions)

Financial resourcesVolume and terms itidicators 1970 1971 1972 1973 1974 1975 1976 1977:P)

Net flows('IOfficial Development Assistance (ODA)(2)Bilateral grants3). . 3.31 3.63 4.36 4.46 5.34 6.27 6.54 7.16Bilateral loans .. 2.36 2.71 2.27 2.64 2.92 3.55 2.96 2.99Multilateral contributions... . 1.12 1.35 1.92 2.21 3.05 3.77 4.16 4.61Subtotal-ODA ... 6.. ......... 79 7.69 8.54 9.37 11.30 13.59 13.67 14.75

Other Official Flows(') ........... 1.14 1.26 1.55 2.46 2.19 3.02 3.31 3.20Subtotal-Official .......... 7.93 8.95 10.038 1.83 13.49 16.61 16.97 17.95

Private Flows(')Direct investment .. ... 3.54 3.63 4.47 4.72 1.12 10.49 7.59 9.96Private export credits. 2.14 2.85 1.45 1.20 2.49 4.14 5.42 6.76Bilateral portfolio investment ........... . 0.72 0.73 1.98 3.27 3.81 5.24 6.07 4.89Multilateral portfolio investment . ... ....... 0.47 0.77 0.67 0.26 -0.07 2.55 3.10 2.36Subtotal-Private .. .. ............. 6.88 7.98 8.57 9.44 7.35 22.43 22.19 23.96

Total-Official and Private Flows(' . . 14.80 16.93 18.66 21.27 20.85 39.04 39.16 41.91

Volume indicators (net flows)Total flows as share of GNP (%) . ... .. 0.73 0.76 0.73 0.68 0.61 1.02 0.94 0.89ODA as share of GNP (%). ..... . . . . .. 0.34 0.35 0.33 0.30 0.33 0.35 0.33 0.31Other Official and Private Flows as shareof GNP (%) .. . ... ....... ... 0.40 0.42 0.40 0.38 0.28 0.67 0.61 0.58

Bilateral grants as share of total ODAnet flows (%). 48.70 47.20 51.00 47.60 47.20 46.10 47.90 48.50

Terms indicatorsTotal ODA loan commitmentsWeighted average maturity (years) . .... 30.2 29.1 29.5 32.0 28.9 32.6 32.8 n.a.Weighted average grace period (years) ....... 7.3 7.0 7.8 8.4 7.7 9.1 9.0 14.5Weighted average interest rate (%) . .. - I - . 2.8 2.8 2.8 2.4 2.6 2.5 2.6 1.9

Total ODA commitments grant element (%) .... . 84.1 82.6 84.8 87.5 86.0 38.6 87.9 91.5

Note: Information on the definitions and interpretation of the data, and a list of the member countries of the Development Assistance CommitteelDACf are given in the "General Notes to Annex Tables." Items may not acld to totals due to rounding. All data at current prices anid exchange rates.

.1) Excluding grants by private voluntary agencies. From all DAC countries, these totaled an estimated $858 million in 1970, $913 million in 1971, $1,036rmillion in 1972, $1.364 million in 1973, $1.217 million im 1974, $1.342 million in 1975, $1,354 million in 1976. and $1,536 million in 1977. In eachyear. these figures represented about 0.04% of combiied Gross National Product (GNP) of DAC countries.

RI Official Development Assistance !ODA) is detined as all flows to developing countries aird multilateral mstitutions provided by official agencies,including state and local governments, or by their executive agencies, which meet the following tests:ia) They are administered with the promotion of the economic development and welfare of developing countries as their main objective.ibl Their financial terms are intended to be concessional in character with grant eiement of at least 25%.

3i Including "grant-like" flows denommiated in recipierts' currencies' "Other Official Flows" include, in particular:

(a) Official bilateral transactions which are alOt conicessional or which, even though they have concessional elements, are primarily export-facilitat-ing in purpose.

(b) The net acquisition by governments and central monietary tirstituticns of securities issued by multilateral development banks at market terms.Rediscounting of trade instruments by central monetary authorities is not included.

(P; Preliminary.n.a. Not available.Source: OECD.

Statistical Annztex 123

96 Developing Countries-External Public Debt Table 4Outstanding (including Undisbursed), by Region, 1970-76(US$ millions)

Africa South East Asia Latin America North Africa More advancedDebt outstanding of the and end the and MediterraneanYear Sahara Pacificri: Caribbean Middle East Seuth Asia coun trieS,2) Total

Total debt outstanding end of year1970,. ........... .. 7,870.0 8,836.0 21,128.4 10,915.0 15,877.9 10,445.6 7 5,072.81971 ......... . .... 9,109.4 11,582.9 24,744.9 13,383.5 17,337.6 1 2,567.2 88:725.61972. ... ........ 10,421.2 14,284.7 29,662.9 15,622.2 18,828.5 14,374.0 103,193.41973 .. ..... ...... 14,208.3 17,375.9 36,069.3 19,910.7 21,157.4 16,291.5 125~013.01974. . . . .. ....... 18,157.2 24,364.6 46,152.3 22,589.2 25,782.4 20,195.3 157,241.01975............... 20,772.4 30,015.2 54,173.2 30,419.2 28,030.7 22,842.6 186,253.31976 .. .. ........ 24,457.3 38,676.9 68,481.8 37,533.7 30,471.9 27,782.2 227,403.7

Debt outstanding by type of creditorDecember 31, 1970Bilateral official. ......... 4,115.7 4,328.8 6,776.9 6,657.7 11,723.9 4,980.4 38,583.4Mhultilateral.......... . 1,690.8 1,673.8 5,039.7 859.6 3,044.3 1,572.7 13,881.0PrivateSuppliers... . . 958.1 1,766.2 3,995.0 2,462.8 949.4 1,005.1 11,136.6Banks. . 305.0 684.0 2,832.6 812.6 148.0 1,406.1 6,188.2Other. .... ..... 800.5 383.1 2,484.1 122.4 12.4 1,481.3 5,283.7Total . .7,870.0 8,836.0 21,128.4 10,915.0 15,877.9 10,445.6 75,072.8

December 31, 1971Bilateral official........... . 4,887.2 6,031.7 7,300.3 8,021.0 12,789.6 5,893.4 44,923.3Multilateral.. . 2,001.5 2,224.3 5,988.9 1,017.8 3,452.6 1,911.7 16,596.8PrivateSuppliers . . ..... 1,182.6 2,006.2 4,473.9 2,886.7 937.6 1,071.4 12,558.5Banks ..... . ...... 405.4 892.9 4,205.5 1,188.1 145.7 1,982.7 8,820.3Other... 632.7 427.7 2,776.3 269.9 12.0 1,708.0 5,826.6Total. 9,109.4 11,582.9 24,744.9 13,383.5 17,337.6 12,567.2 88,725.6

December 31, 1972Bilateral official, .. .. 5,372.9 7,540.3 8,441.9 9,364.7 13,656.6 6,719.3 51,095.6Multilateral .... 2,483.4 2,7793.2 7,238.7 1,256.9 4,045.5 2,142.4 19,960.1PrivateSuppliers 1,268.7 2,154.8 4,628.7 3,136.2 997.1 1,167.1 13,352.6Banks....... ..... ... 729.6 1,282.6 6,277.7 1,544.1 119.4 2,398.3 12,351.8Other ... ...... 566.6 513.9 3,075.8 320.2 9.7 1,947.0 6,433.3Total .. 10,421.2 14,284.7 29,662.9 15,622.2 18,828.5 14,374.0 103,193.4

December 31. 1973Bilateral official ...... 6,622.1 8,803.1 9,518.4 11,188.8 15,109.0 7,336.3 58,577.7Multilateral. 3,365.3 3,526.2 8,422.5 1,799.1 4,877.1 2,538.0 24,528.2PrivateSuppliers.. 1,689.4 2,113.0 4,813.5 3,220.2 1 ,051.2 1,231.6 14,119.3Banks ... ..... 1,711.7 2,131.9 9,951.6 3,362.7 111.3 2,776.5 20,045.7Other . . .. ..... 819.8 801.8 3,362.9 339.9 8.7 2,409.0 7,742.2Total .. .. .......... 14,208.3 17,375.9 36,069.3 19,910.7 21,157.4 16,291.5 125,013.0

December 31, 1974Bilateral official... ..... 8,401.6 10,522.0 11,583.5 12,454.5 18,187.1 8,429.2 69,577.8Multilateral 4,173.2 4,719.9 9,797.9 2,655.1 6,314.9 3,208.1 30,869.1PrivateSuppliers.. . 2,030.7 3,901.0 5,553.0 4,021.7 1,072.9 1,176.0 17,755.4Banks .. 2,730.3 3,960.0 14~852.6 3,140.2 200.8 4,596.6 29,480.5Other .... .. 821.5 1,261.7 4,365.3 317.7 6.7 2,785.4 9,558.2Total......... . 18,157.2 24,364.6 46,152.3 22,589.2 25,782.4 20,195.3 157,241.0

December 31, 1975Bilateral official. .9,130.1 11,612.4 12,299.8 15,501.0 19,202.0 9,171.1 76,916.4Multilateral ............. . 5,492.8 6,023.8 11,848.0 3,125.8 7,709.6 3,717.3 37,917.4PrivateSuppliers.. . 2,238.9 3,851.6 5,322.5 5,799.8 883.1 1,053.8 19,149.6Banks 3,243.8 7,052.1 20,050.6 5,642.1 233.6 5,691.4 41,913.6Other . ..... . 666.8 1,475.2 4,652.3 350.5 2.5 3,209.0 10,356.3Total .. . ...... 20,772.4 30,015.2 54,173.2 30,419.2 28,030.7 22,842.6 186,253.3

December 31, 1976Bilateral official.....10,449.0 14J150.8 13,997.6 17,719.7 20,783.8 11,773.2 88,874.1Multilateral. 6,654.5 7,712.2 14,338.9 3,989.2 8,659.4 4,278.4 45,632.7PrivateSuppliers. ...... ...... 2,515.2 4,370.8 5,746.6 6,548.1 792.9 1,082.8 21,056.3Banks .... 4,210.8 10,253.0 28,445.1 8,895.3 233.5 7,282.4 59,320.0Other.. 627.8 2,190.1 5,953.6 381.5 2.3 3,365.3 12,520.6Total. .24,457.3 38,676.9 68,481.8 37,533.7 30,471.9 27,782.2 227,403.7

Note, Information on the sources, definitisons, and interpretation of the data, and a list of the countries included ore given in the "General Notes toAnnex Tables." items mar not add to totals due to rounding.D~ones anot include pablicly guaranteed private debt of the Philippines estimated at $583.5 millioni as of the end of 1976.

,i2 Does sot include nonpublicly guaranteed debt at too "social nector" ot Yugnoslavia contracted otter March 31, 1966.Source: World Bank.


96 Developing Countries-External Public Debt Outstanding,by Country and Type of Creditor, December 31, 1976(US$ millions)

Inclunding unidisbursed

Region Disbursed Bilateral Multi-Country only Total official lateral Suppliers Banks Other

Africa South of the SaharaBenin .................. ......... 113.4 204.5 100.8 76.0 15.5 12.2 -Botswana ......................... 161.2 212.5 118.3 92.0 - - 2.2Burundi ........................... 23.7 74.5 30.5 36.1 4.7 1.1 2.1Cameroon ........................... 531.0 898.8 367.4 315.0 17.1 172.3 26.9Central African Empire ............... 79.0 102.4 43.1 26.7 6.6 1.8 24.2Chad ........................... 95.4 250.0 108.8 97.6 29.5 14.0 -Comoros .............. ..... 17.4 32.2 21.9 10.3 - -Congo, People's Republic of the ........ 397.8 668.8 378.0 112.6 153.2 25.1 -East African Community .............. 284.4 333.6 92.2 209.7 8.9 - 22.8Ethiopia .......................... 430.8 698.3 286.5 389.8 1.1 20.4 0.4Gabon . ......................... 737.9 940.6 213.0 54.0 123.2 515.1 35.3Gambia, The ... ... . 13.7 49.3 27.4 21.9 - - -Ghana ... .............. .... 592.7 835.4 401.6 259.2 174.6 - -Guinea .......................... 871.5 952.3 710.3 95.4 126.0 15.5 5.1Ivory Coast ........................ . 1,183.3 2,220.8 402.8 449.0 512.8 784.4 71.8Kenya .............. ............ 659.8 1,248.9 454.5 549.0 67.0 133.2 45.3Lesotho .......................... 15.4 29.4 4.4 24.3 - 0.3 0.4Liberia .......................... 201.2 348.4 205.6 100.1 6.8 35.3 0.6Madagascar .......................... 180.7 326.3 149.1 167.8 4.2 2.7 2.6Malawi ... . 258.1 343.3 198.9 124.2 2.7 3.8 13.7Mali ... ...... 375.7 559.6 400.6 144.6 13.7 0.7 -Mauritania .......................... 392.4 619.1 371.3 103.4 55.9 36.4 52.1Mauritius ... ................ 46.3 133.0 70.0 63.0 - - -Niger.......... ................ 123.4 177.7 111.4 62.4 1.4 2.4 -Nigeria ....... ........... . 953.7 1,420.4 544.1 727.0 16.3 11.1 122.0Rwanda ....................... ... 37.6 99.8 44.5 53.2 1.7 - 0.4Senegal .. ........................ 335.6 597.7 244.8 189.6 11.5 127.6 24.1Sierra Leone . .... . .............. 159.0 183.1 57.5 50.4 56.9 - 18.3Somalia ......................... . 277.2 595.7 479.2 112.3 0.7 - 3.4Sudan ................ .......... 1,292.1 2,061.6 926.4 447.9 195.7 483.6 7.9Swaziland .............. 46.0 66.7 33.0 32.3 0.6 0.1 0.7Tanzania .... ........... 913.8 1,414.0 918.1 437.8 26.8 20.7 10.5Togo .... .......... ............ 166.8 357.9 70.6 54.0 82.7 69.7 81.0Uganda ................ 211.5 241.2 158.3 76.4 - 0.5 6.0Upper Volta ......................... 84.4 247.6 130.3 114.8 1.0 1.6 -Zaire .......................... 2,170.0 3,306.9 952.2 352.9 647.0 1,331.8 23.0Zambia .......................... 1,184.3 1,604.9 621.5 421.5 149.2 387.4 25.2Total .... 1..... .............. 5,618.2 24,457.3 10,449.0 6,654.5 2,515.2 4,210.8 627.8

East Asia and PacificChina, Republic of ............ 2,239.7 3,534.4 1,398.9 326.8 348.4 990.1 470.2Fiji ...... ................. 57.0 87.5 33.8 42.2 6.6 - 5.0Indonesia .......... ............ 9,917.4 14,481.5 7,016.2 1,960.2 1,710.0 3,377.8 417.2Korea, Republic of .... ............. 6,696.3 10,214.4 3,236.0 1,853.7 1,868.6 2,888.3 368.0Malaysia .......................... 1,619.2 3,200.4 636.4 925.3 33.9 1,545.3 59.6Papua New Guinea ........... ......... 289.1 335.8 12.7 123.9 3.2 11.5 184.5Philippines .......................... 2,126.2 4,268.5 1,168.0 1,216.9 168.2 1,271.6 443.8Singapore .......................... 697.6 935.4 206.9 242.1 215.0 29.5 241.9Thailand .......................... 821.7 1,618.9 442.0 1,021.1 17.0 138.7 -

Total . ......................... 24,464.1 38,676.9 14,150.8 7,712.2 4,370.8 10,253.0 2,190.1

Latin America and theCaribbeanArgentina ........................ 4,277.1 6,235.4 1,075.1 1,141.3 1,396.6 1,762.7 859.7Barbados .......................... 28.8 55.6 17.2 18.6 1.1 15.8 2.8Bolivia .. .... .. 1,000.1 1,576.3 563.0 398.3 133.6 360.9 120.4Brazil ......................... . 14,852.1 18,111.8 3,723.0 3,638.8 1,746.0 8,487.8 516.1Chile .... ...................... 3,527.1 4,171.0 2,084.6 468.1 774.7 428.4 415.2Colombia ................. 2,449.2 3,324.1 1,138.8 1,290.6 241.8 570.2 82.6Costa Rica .................. 534.4 932.6 182.6 458.2 36.1 247.1 8.6Dominican Republic . . . 529.0 864.1 448.2 181.9 16.1 190.1 27.8Ecuador ............ ......... . 638.8 1,025.1 250.6 357.9 117.6 253.1 45.9

Statistical A aznex 125

Table 5

Including undisbursed

Region Disbursed Bilateral Multi-Country only Total officinl lateral Suppliers Banrks Other

El Salvador ... .. ....... 272.3 462.0 116.3 270.7 - 12.5 2.5Guatemala... ......... 211.7 551.0 188.9 334.4 4.7 22.7 0.4Guyana. .. ......... ... 324.0 406.7 185.6 53.0 17.9 94.6 55.6Haiti ........ 76.7 168.1 58.6 106.8 2.7 - -

Honduras... .... . ... 334.9 580.6 154.1 376.4 21.8 28.2 -

Jamaica ..... ... . 854.5 1,088.8 376.3 184.0 17.9 398.4 112.1Mexico ... .... .. . 15,547.2 17,517.4 1,045.8 3,108.4 449.6 10,924.1 1 989.6Nicaragua. . 642.2 935.9 232.4 275.1 18.0 305.8 104.6Panama .. . ... .... .. 1,090.9 1,408.5 246.6 274.9 42.6 758.0 86.5Paraguay ....... ......... 221.5 450.1 168.0 144.0 43.2 94.8 0.1Peru.. 3,379.3 4,383.6 1,252.4 546.2 449.4 1,984.3 151.2Trinidad and Tobago ..... ...... 99.1 150.1 39.8 92.6 - 11.6 6.1Uruguay....... ....... 687.6 1,005.4 206.3 250.0 33.7 228.5 287.1Venezuela....... .. .. ... 2,970.3 3,077.9 243.5 368.8 181.4 1,205.5 1,078.7Total .. 5 _4,548.7 68,481.8 13-,997.6 14-,338.9 5_~,746.6 28,445.1 5,953.6

North Africa andMiddle EastAlgeria . ... ...... ... 5,853.1 11,340.8 1,986.5 384.0 4,006.7 4,772.4 191.2Bahrain........ .... 61.3 92.4 92.4 - - - -

Egypt, Arab Republic of .. 5,043.0 7,866.2 5,911.0 807.6 849.0 259.6 39.0Iran. ... ... ........ 4,270.9 6,706.9 2,809.6 879.8 998.7 1,991.1 27.8Iraq........ ... 391.0 1,376.1 731.2 134.0 11.0 500.0 -

Jordan .... 446.8 683.9 578.6 89.3 9.8 6.3-Lebanon ........... ..... 39.9 74.1 25.0 48.0 0.1 1.1 -Morocco......... 2,254.9 3,152.5 1,204.1 610.3 274.7 1,006.5 56.8Oman. ......... 210.8 390.8 42.7 8.5 125.1 214.5 -Syrian Arab Republic ........ . 967.6 2,582.5 2,078.2 295.9 178.6 29.9 -

Tunisia. ... ~.. ... ..... 1,260.6 2,340.5 1,573.3 495.2 91.3 114.0 66.7Yemen Arab Republic. .... 274.4 502.8 348.2 151.5 3.1 - -

Yemen, People's DemocraticRepublic of .... .. ..... 226.1 424.1 338.8 85.3 - --

Total ..... ........ 21,30.5 3,533.7 17.,719,7 39-89.2 654-8.1 8,-895.3 3-81.5

South AsiaAfghanistan ..... .. ... 911.2 1,748.5 1,548.0 166.4 34.1 - -

Bangladesh . . ...... . 1,946.7 2,858.2 1,780.1 912.1 139.0 27.0-Burma .. ..... ......... 306.2 676.7 349.1 296.3 31.2 - -India. 13,297.7 16,468.2 10,726.0 5,334.9 310.9 94.3 2.1Nepal. ..... 44.3 236.5 56.7 179.2 0.6 - -

Pakistan . .. .. .. 5,968.2 7,381.2 5,548.9 1,570.1 150.0 112.3 0.1Sri Lanka.. ........ 702.3 1,102.7 774.9 200.4 127.1 - 0.2Total .. 3-,17~6.6 30_,_471.9 20,78-3.8 8~,659.4 7-92.9 2-33.5 -2.3

More advanced Mediter-ranean countriesCyprus ...... .. 94.4 137.3 17.9 105.5 10.5 3.4 -Greece ..... 2,377.1 3,024.3 534.9 424.0 139.6 1,802.0 123.9Israel.. ............ . 6,828.3 7,233.4 4,080.0 189.6 140.3 665.5 2,158.1Malta ......... .. ..... 48.0 57.6 53.7 2.2 - 1.7 -

Portugal ... ... .. . 1,005.4 1,472.2 342.6 198.6 380.5 487.2 63.3Spain ..... .. ...... 4,761.2 6,699.7 1,904.7 457.2 146.1 3,496.5 695.2Turkey..,.,.. . ... 3,537.2 5,466.5 3,041.4 1,737.8 214.7 433.7 38.9Yugoslavia ............. 2,765.8 3,691.1 1,797.9 1,163.6 51.1 392.5 286.0Total .... . ........ 21I,417.4 2~7,782.2 11-,7 73. 2 4_~,278.4 1,082.8 7~,282.4 -3,36-5.3GRAND TOTAL ........... . 1i60,525.6 227,403.7 88,874.1 45,632.7 21,056.3 59,320.0 12,520.6

N ote: I nf ormnatio n o n the soaurce s, d ef in itie ns,a nod i nte rp retatio n of the d ata i s gi ven i n the GeOnneralI N ote s to An n ex Ta bles." I t sho ulId be neted th at tarsome countries new intormation has beer incorporated snice the preparation at the World Developmrent Indicators. The data shown here should beregar ited as the mare reliable. Items may net add to totals doe to rounding.

Source: World Bask.


Service Payments on External Public Debt as Percentage of Exports ofGoods and Services, 1970-76RegionCountry 1970 1971 1972 1973 1974 1975 1976

Africa South of the SaharaBenin ..... ............................. 2.2 4.2 3.3 1.9 5.0 5.1 2.4Botswana(') (2) ............. ..................... 2.7 1.9 2.6 2.6 2.7 3.1 2.5Burundi .................................. 2.3 2.8 6.6 2.7 2.7 5.7 4.6Cameroon ............... ................... 3.1 4.4 4.8 4.8 4.4 5.4 6.0Central African Empire ........ ........... ...... 3.2 2.2 1.6 4.4 8.1 10.3 7.2Chad .................................. 3.9 8.8 5.3 3.5 3.2 5.6 4.1Comoros .................................. - - - - - - 5.7Congo, People's Republic of the ................... 8.4 8.6 8.9 7.7 6.8 11.8 6.5Ethiopia ...................... ............ 11.3 10.5 8.7 6.4 5.5 7.3 6.3Gabon .................................. 5.5 7.2 7.2 14.3 4.3 5.8 6.7Gambia, The .................................. 0.7 1.0 1.2 1.3 0.8 0.6 0.7Ghana .................................. 4.9 7.1 3.2 2.2 2.4 3.3 4.6Guinea .................. ................ 28.7 37.2 28.6 36.0 20.1 10.5 20.8Ivory Coast ................. ................ 6.7 7.7 8.2 7.2 8.0 9.1 9.1Kenya(3) .... . ......... ..... ..... ..... 5.5 5.4 6.2 5.6 4.3 4.3 5.0Lesotho(') (4) ..... ... ... . ... ........... . 9.6 7.1 5.1 3.2 2.1 3.2 3.5Liberia . ................................ 7.2 6.6 6.0 5.2 4.7 5.1 4.3Madagascar ..................... ............ 3.5 4.3 3.8 5.3 3.4 3.7(5) 4/7(5)Malawi ..... ............................ 7.0 7.8 7.7 7.6 7.7 7.4 6.1Mali ......................... 1.8 1.6 1.4 6.0 2.5 3.1 3.2Mauritania .................... ............. 3.2 3.3 8.6 5.5 6.0 20.2 37.0Mauritius ...... ........................... 3.7 5.0 2.1 1.7 1.0 1.0 1.3N iger . ................................. 3.8 3.2 2.7 2.7 3.0 5.4 3.4Nigeria ......... .............. ........ 4.1 3.0 2.7 4.0 1.7 3.3 2.3Rwanda .................................. 1.3 1.9 2.2 0.3 0.8 1.2 0.6Senegal .................................. 2.4 5.0 3.7 8.0 5.3 5.4 6.1Sierra Leone ................................. 10.0 7.6 8.0 8.2 8.0 8.5 21.4()Somalia .... .............................. 2.0 2.4 3.1 3.7 4.3 3.4 3.0Sudan .................................. 10.3 13.2 13.3 11.4 13.2 18.3 16.7Swaziland(') .................................. 4.7 5.1 9.0 9.5 2.2 1.0 0.8Tanzania(3) ....... ........................... 7.3 7.4 10.9 7.4 6.5 7.1 8.1Togo .................................. 2.9 3.0 6.6 6.9 3.4 10.1 8.0Uganda(3' ..................... ............. 3.2 3.6 4.2 7.4 4.5 3.7 2.5Upper Volta .................................. 3.9 4.0 3.0 3.3 3.1 5.6 3.8Zaire .................................. 4.4 4.9 8.0 8.4 12.9 15.8 11.7Zambia ...................... ............ 5.4 9.9 10.3 28.8(5) 5.2 8.7 8.9

East Asia and PacificChina, Republic of ....... .......................t 4.5 4.4 4.0 3.5 2.6 3.9 3.5Fiji ............... ......................... 1.0 0.8 0.8 0.9 1.6 1.6 2.3Indonesia(7) ......... .... .. . .... ........." 6.4 7.0 6.9 6.4 3.9 8.1 11.2Korea, Republic of .... .......................... 18.9 18.7 17.4 14.4 9.6 10.1 8.9Malaysia ................................. 3.0 2.6 2.8 2.2 2.6 3.5 4.3Papua New Guinea ............................ 0.6 2.0 2.9 1.6 2.7 4.5 4.8Philippines ............. .................... 7.6 6.9 10.1 8.7 3.3 7.3 6.6Singapore ........... ...................... 0.6 0.6 1.0 0.6 0.6 0.7 0.8Thailand ... ' 3.3 3.2 2.7 2.6 1.9 2.4 2.4

Latin America and the CaribbeanArgentina ............................ ...... 21.4 20.2 20.4 17.8 16.6 21.4 18.3Barbados .................................. 1.0 0.9 0.7 0.8 2.3 1.7 1.6Bolivia .................................. 10.9 12.1 18.0 15.4 10.9 15.1 16.4Brazil .............. ................. ... 14.1 16.0 15.9 12.6 12.0 14.6 14.8Chile .................................. 18.9 21.2 9.9 10.9 11.5 28.6 32.9Colombia ............... ................... 11.6 14.0 12.4 13.1 15.8 11.1 9.4Costa Rica .. ................................ 9.7 10.0 9.7 10.1 9.3 10.5 9.4Dominican Republic .............................. 6.4 6.9 4.7 5.6 5.7 6.1 8.8Ecuador ................ .................. 9.0 12.4 10.2 7.3 7.1 4.4 5.8El Salvador ................................. . 3.6 5.9 3.1 5.4 4.9 9.3(5) 4.2Guatemala .................................. 7.4 8.0 10.4 3.6 3.8 1.7 1.8Guyana ........... ....................... 3.6 3.0 5.7 5.8 4.9 4.8 10.4


Table 6

RegionCountry 1970 1971 1972 1973 1974 1975 1976

Haiti(, ....... ........................... 2.3 6.4 14.2 7.7 6.9 7.3 7.4Honduras .......... ......... ......... 2.8 3.3 3.4 3.8 3.7 4.8 6.3Jamaica .................................. 2.9 3.6 4.6 4.9 5.9 6.6 11.1Mexico .................................. 23.6 22.8 22.8 23.1 18.7 25.0 32.3Nicaragua ....... ........ ................ . 10.4 13.4 9.4 19.1 10.5 11.4 12.2Panama(' .............. ....... ......... 7.7 9.1 10.5 14.4(6) 12.8(69 6.0 8.1Paraguay.................. ................ 11.1 14.1 13.2 10.3 7.7 9.8 8.7Peru ............................. ..... 13.6 19.3 18.3 31.7 23.9(6) 23.4 21.6Trinidad and Tobago ................ ......... 2.0 1.7 1.8 1.8 2,2(6) 1.2(6) 2.6(6)Uruguay .............. ........... ....... 21.5 22.6 30.7 22.8 32.8 45.9 29.2Venezuela .................................. 2.9 3.8 6.1 6.0 4.2(6, 5.4(6) 3.9

North Africa and Middle EastAlgeria ..................... ............. 3.2 5.8 11.8 12.8 13.5*6 8.8 14.1Bahrain .... .............................. .na. n.a. n.a. n.a. n.a. n.a. n.a.Egypt, Arab Republic of .................. ....... 28.7 28.8 31.1 39.8 20.8 21.5 17.6Iran(8' . . ................................ 12.2 12.5 20.0 14.4(6 6.9 4.1 4.3Iraq ...... ...... ..... 2.2 2.0 2.9 2.9 1.5 0.7 0.9Jordan ................................ .. 3.6 6.9 6.8 5.9 4.6 3.4 2.8Lebanon .................................. 0.5 1.0 0.8 0.8 n.a. n.a. n.a.Morocco ................................ 7 . 10.2 9.3 8.3 5.3 6.8 8.2Oman ......... ..................... n.a. n.a. n.a. n.a. n.a. n.a. n.a.Syrian Arab Republic ........................ ... 11.0 10.6 8.9 7.4 6.3 7.9 7.9Tunisia ............. ... _ .............. 17.1 14.8 14.7 10.2 6.4 6.6 7.2Yemen Arab Republic... ....................... n .a. n.a. n.a. n.a. n.a. n.a. n.a.Yemen, People's Democratic Republic of ..... ...... n.a. n.a. n.a. n.a. n.a. n.a. n.a.

South AsiaAfghanistan6s' ............... .... ... 25.2 25.7 17.8 19.4 15.5 9.5 7.3Bangladesh ...................... .... - - - 2.2 6.0 17.9 13.4Burma(' ............................... 16.1 14.2 18.2 27.3 13.1 17.8 16.3India(8 '9 ..... ... .r .... ............. 22.0 23.7 22.5 19.6 17.2 13.4 12.0Nepal ...... ................ ........ 10.7 1.0 1.4 1.7 2.3 4.0 2.3Pakistan(9)t 23.6 19.2 23.4 16.5 15.4 18.4 18.2Sri Lanka ...................... ... 9.6 10.7 13.7 12.9 12.1 20.2 20.1

More advancedMediterranean countriesCyprus . . . . 2.2 2.6 2.0 1.9 2.2 3.2 2.9Greece ......... 10.1 8.3 7.7 8.5 8.7 10.5 11.2Israel . ' 12.7 12.5 16.9 17.0 16.3 18.9 12.1Malta ........ ............. 7... .. 1 . 10.4 0.6 0.5 0.7 0.6 0.4Portugal ............. ... 4.4 3.8 3.4 2.5 2.0 2.9 3.1Spain .. . . . ..... ..................... 3.6 5.1 3.2 3.3 2.4 2.6 3.6Turkey .. .... .......... 16.3 11.9 11.3 6.8 6.4 7.4 7.1Yugoslavia . .. ........ 8.2 5.4 5.1 5.4 5.5 5.7 5.5

Note: Debt service ratios are based on debt service actually paid as reported by the countries and not on contractual service due. Information on thesources, definitionis, and interpretation of the data is given in the "Generat Notes to Annex Tables." It should be noted that for some countries newinformation has been incorporated since the preparation of the World Oevelopmentlodicatrrs. The data shown here should be regarded as themore reliable.

:r Because of special monetary arrangements peculiar to countries such as this, the debt service ratio must be regarded with more thaou usualcaution in consideringthe country's external financial situation.

(a) Export data for exports of goods only, except for 1975.()3 Includes a notional share of debt service payments oil loans to the East African Community: Kenya-51%, Tanzania-40%, Uganda-10%.a1, Export data for exports of goods only.1)i Export data for exports oF goods and nonFactor services only.

969 Service payments For these years reflect prepayments. The debt service ratios without prepayments would be as follows: Algeria-5.5% for 1974;El Salvador-3.3% tsr 1975 iran-13.0% for 1973: Panama-13.4% for 1973 and 6.6% For 1974; Peru-23.5% for 1973 and 24.4% for 1974Trinidad and Tobago-1.1t% for 1974, 0.8% for 1975, and 0.80% for 1976; Venezuela-3.50 for 1974 and 4.1% for 1975; Zambia-13.5% For 1973.

r) Exports of oil are included on a gross basis.nr1 Data are for Fiscal years.n)1 Export data do not incrude workers' remittances.

'10) Includes figures up to 1974 relattng to debt subsequently taken over by Bangladesh. The ratios for 1973 through 1976 reflect debt relief under theGeneral Debt Relief Agreement oF June 1974.

Source: World Bank anid IMF.

Projected Debt Service on External Public Debt Outstanding, by Region and Type of Creditor, as of December 31, 1976 Table 7 _Z00(US$ millions)

Debt out-standing

(including Projected debt serviceRegion undisbursed)Type of creditor December31, 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986

Africa South of the SaharaBilateral official ........................... . 10,449.0 609.5 649.1 661.7 681.8 720.9 685.0 687.2 653.2 636.3 616.1Multilateral ........................... ... . 6,654.5 245.3 286.4 336.9 372.9 403.4 410.5 425.9 426.4 433.7 438.5PrivateSuppliers ................ ......... 2,515.2 396.1 445.5 410.2 388.8 352.1 283.3 229.3 173.8 105.8 63.9Banks ..................... ... 4,210.8 703.7 849.6 868.2 831.9 607.0 479.2 409.5 274.3 178.7 112.4Other ............... ....... ... 627.8 193.4 89.8 84.5 76.6 56.7 48.6 43.5 34.4 31.0 25.5

Total ............................ ... 24,457.3 2,148.1 2,320.4 2,361.5 2,351.9 2,140.0 1,906.6 1,795.4 1,562.1 1,385.5 1,256.5

East Asia and PacificBilateral official ............................ 14,150.8 686.8 878.3 989.1 1,024.9 1,059.6 1,104.2 1,133.8 1,108.8 1,081.3 1,028.9Multilateral ................. .... 7,712.2 388.5 485.2 593.1 672.9 721.9 749.8 755.9 751.3 742.7 723.5PrivateSuppliers ............ ..... ... 4,370.8 737.4 762.5 789.8 650.4 572.2 500.6 435.1 370.8 318.0 492.8Banks ................ ............. 10,253.0 1,764.3 2,149.3 2,322.9 2,013.2 1,434.3 1,093.3 761.1 537.7 431.6 392.7Other ........... ................ . 2,190.1 237.3 265.4 334.6 287.1 293.3 229.7 204.3 165.3 142.1 123.4

Total .................................. 38,676.9 3,814.4 4,540.8 5,029.4 4,648.5 4,081.4 3,677.6 3,290.1 2,933.9 2,715.7 2,761.4

Latin America and the CaribbeanBilateral official .............................. ... 13,997.6 1,422.3 1,429.3 1,449.5 1,340.1 1,269.8 1,247.4 1,152.5 1,029.6 945.7 857.3Multilateral ........ ............. 14,338.9 957.3 1,094.8 1,231.8 1,359.5 1,462.1 1,476.7 1,454.1 1,418.2 1,385.0 1,328.9PrivateSuppliers .................................. 5,746.6 1,274.2 1,202.8 1,037.6 880.6 703.0 551.4 428.4 315.0 232.2 149.9Banks ............... ............ . 28,445.1 5,487.3 7,005.1 7,162.1 6,076.6 3,815.4 2,440.0 1,953.2 1,213.6 629.9 440.4Other .......... ..... ................... 5,953.6 1,602.6 1,257.5 1,115.5 1,057.4 711.3 497.3 437.0 311.2 235.9 170.3

Total .................................. 68,481.8 10,743.8 11,989.5 11,996.4 10,714.3 7,961.5 6,212.7 5,425.3 4,287.6 3,428.7 2,946.9

North Africa and Middle EastBilateral official ...................... . 17,719.7 1,576.3 1,560.5 1,536.5 1,561.2 1,677.5 1,543.3 1,394.0 1,258.0 1,040.4 932.4Multilateral ... ............ ..... 3,989.2 167.2 215.2 262.1 303.4 339.4 353.6 359.5 359.9 358.7 356.5 r,Private Suppliers 6,548.1 1,240.4 990.8 973.2 969.1 805.4 738.5 548.0 443.1 344.8 244.3 zBanks ........ ...... .............. 8,895.3 778.1 1,300.2 1,723.5 1,721.7 1,568.0 1,339.5 971.5 717.5 590.5 549.0 1Other .............................. ... 381.5 44.6 53.7 50.4 52.8 54.9 41.4 39.3 29.5 24.3 58.1Total ........ ......... ... .. 37,533.7 3,806.6 4,120.4 4,545.6 4,608.1 4,445.3 4,016.3 3,312.2 2,807.9 2,358.7 2,140.4

South AsiaBilateral official ....... ...... .. 20,783.8 1,087.8 1,142.4 1,267.6 1,363.3 1,331.9 1,237.7 1,170.0 1,134.0 1,131.5 1,130.3 ,

Multilateral 8,659.4 217.8 239.9 257.6 272.6 263.3 269.0 273.9 283.0 297.4 310.3

PrivateSuppliers 792.9 190.9 151.6 122.3 96.4 82.4 70.3 56.1 39.8 29.0 23.8 .

Banks 233.5 46.5 47.9 43.6 35.5 27.5 23.2 21.8 20.6 15.8 9.6

Other 2.3 0.3 0.2 0.1 0.1 0.1 0.1 1.1 1.0 - -

Total 30,471.9 1,543.4 1,582.0 1,691.2 1,767.8 1,705.2 1,600.3 1,522.8 1,478.4 1,473.8 1,474.0

More advanced Mediterranean countriesBilateral official 11,773.2 1,188.7 1,246.1 1,325.5 1,219.1 1,200.8 1,169.8 1,080.3 941.5 873.5 805.6

Multilateral 4,278.4 293.3 337.0 381.4 413.6 459.5 499.9 511.1 428.4 414.3 389.0

PrivateSuppliers 1,082.8 228.2 197.9 207.8 154.6 121.5 103.1 84.8 70.4 60.7 51.2

Banks 7,282.4 1,436.5 1,363.6 1,761.0 1,613.4 1,354.7 840.6 518.9 264.9 155.2 68.8

Other 3,365.3 347.1 307.6 386.8 351.2 357.8 402.3 263.2 191.0 167.9 219.7

Total 27,782.2 3,493.8 3,452.2 4,062.6 3,751.8 3,494.3 3,015.6 2,458.4 1,896.2 1,671.7 1,534.2

96 developing countriesBilateral official .88,874.1 6,571.5 6,905.7 7,229.9 7,190.4 7,260.4 6,987.4 6,617.7 6,125.1 5,708.7 5,370.7

Multilateral 45,632.7 2,269.6 2,658.5 3,062.8 3,394.9 3,649.6 3,759.6 3,780.3 3,667.2 3,632.0 3,546.7

PrivateSuppliers 21,056.3 4,067.2 3,751.3 3,540.8 3,139.9 2,636.7 2,247.3 1,781.8 1,412.8 1,090.6 1,026.0

Banks 59,320.0 10,216.6 12,715.5 13,881.3 12,292.2 8,806.8 6,215.6 4,635.9 3,028.6 2,001.7 1,572.9

Other 12,520.6 2,425.2 1,974.3 1,972.0 1,825.1 1,474.0 1,219.3 988.5 732.3 601.2 597.0

Total.. 227,403.6 25,550.1 28,005.2 29,686.8 27,842.5 23,827.7 20,429.2 17,804.1 14,966.1 13,034.1 12,113.3

Note: lnformatioei on the sources, definitions, and eiterpretation of the data, and a list of the countries jicluded are given in the "General Notes to Aninex Tables." Items may not add to totals due to rounding.

Source: World Bank.

t'


External Resource Flows and Service Payments on Table 8External Public Debt, by Region, 1970-76(US$ millions;

Disbursements Debt service

Region Grants and Amorti- Net NetYear Loans grant-like Total zation Interest Total flow transter

Africa South of the Sahara1970 . ............ 1,061.3 328.1 1,389.4 280.7 161.7 442.4 1,108.7 947.01971 . ......... .......... 1,068.4 376.0 1,444.4 329.5 189.0 518.6 1,114.9 925.91972 . ...... ...... 1,470.5 626.7 2,097.2 406.1 205.8 612.0 1,691.1 1,485.21973 . ............. 2,125.7 515.7 2,641.4 785.9 323.6 1,109.5 1,855.5 1,531.91974 . ..... ......... 2,524.5 814.6 3,339.1 650.3 349.8 1,000.1 2,688.9 2,339.11975... .............. I. 3,088.2 973.2 4,061.4 776.3 511.5 1,287.8 3,285.1 2.773.61976 .................... 3,578.4 866.8 4,445.2 892.4 493.3 1,385.7 3,552.8 3,059.5

East Asia and Pacific1970 ........... ... 1,307.1 386.2 1,693.3 444.1 184.0 628.1 1,249.2 1,065.21971 . .............. 1,568.5 317.2 1,885.7 481.1 230.3 711.4 1,404.5 1,174.31972 . ................. 2,351.5 407.3 2,758.8 605.0 339.1 944.1 2,153.9 1,814.81973 . ....... . . .... 2,698.4 333.9 3,032.3 932.7 452.0 1,384.7 2,099.7 1,647.61974 . ......... .......... 3,565.0 362.0 3,927.0 924.5 497.0 1,421.5 3,002.5 2,505.51975 . .... .......... 6,015.2 431.4 6,446.6 1,211.3 745.9 1,957.2 5,235.3 4,489.41976 . ........... ...... 6:610.1 328.7 6,938.8 1,638.0 1,161.2 2,799.2 5,300.9 4,139.6

Latin America and the Caribbean1970 ... .... ..... ... 3,727.6 296.1 4,023.7 1,740.0 755.9 2,496.0 2,283.7 1,527.71971 . ............. _.. 3,775.6 264.8 4,040.4 1,895.0 850.6 2,745.6 2,145.4 1,294.81972 . ............... 5... ,402.9 267.7 5,670.6 2,197.9 974.2 3,172.2 3,472.7 2,498.41973 . ...... 7,433.1 236.3 7,669.4 2,998.9 1,327.4 4,326.3 4,670.5 3,343.11974 . .. ... 10,065.4 236.0 10,301.4 3,494.1 1,961.6 5,455.7 6,807.3 4,845.71975 . ............ . 11,591.8 227.9 11,819.7 3,764.3 2,572.2 6,336.5 8,055.4 5,483.21976 . . ..... 16,214.9 167.7 16,382.6 4,540.4 3,089.8 7,630.2 11,842.2 8,752.4

North Africa and Middle East1970 ........... . 1,910.1 191.7 2,101.8 647.6 190.5 838.1 1,454.3 1,263.71971.. 2,048.7 193.7 2,242.4 865.0 242.3 1,107.3 1,377.4 1,135.11972 . .. 2,417.0 193.7 2.610.7 1,366.4 327.5 1,693.9 1,244.3 916.81973 . ... ...... ... 4,414.9 189.1 4,604.0 1,768.6 438.5 2,207.1 2,835.3 2,396.91974 . .............. 3,056.1 269.6 3,325.7 2,579.3 678.5 3,257.8 746.3 67.91975 . . 6,022.8 232.9 6,255.7 1,792.7 665.8 2,458.5 4,463.0 3,797.31976 ...... ... . 6,245.6 221.5 6,467.1 1,983.8 908.3 2,892.1 4,483.3 3,574.9

South Asia1970. .. .. .. 1,483.0 288.3 1,771.3 479.8 288.7 768.5 1,291.5 1,002.81971 ................... 1,756.2 346.0 2,102.2 481.0 301.6 782.7 1,621.2 1,319.51972 . ... ... 1,329.3 395.5 1,724.8 546.0 341.2 887.2 1,178.8 837.61973 .... ... 1,763.3 460.8 2,224.1 605.3 373.5 978.8 1,618.8 1,245.31974 . .. .... .. . 2,858.2 575.1 3,433.3 716.4 375.4 1,091.8 2,716.9 2,341.61975 . .................. 3,666.7 1,029.3 4,696.0 851.4 408.2 1,259.7 3,844.6 3,436.41976 ........... ...... 3,136.2 817.1 3,953.3 814.1 462.1 1,276.2 3,139.2 2,677.1

More advanced Mediterranean countries1970 .................... 1,623.9 14.8 1,638.7 682.3 302.5 984.8 956.4 653.81971 . .. ....... ... 2,087.5 37.4 2,124.9 828.7 346.4 1,175.1 1,296.2 949.81972 ......... ........... 2,498.6 37.5 2,536.1 948.7 412.6 1,361.3 1,587.4 1,174.81973 . ....... ... 2,875.1 123.3 2,998.4 1,160.8 573.0 1,733.8 1,837.6 1,264.61974 . .......... 3,436.8 94.4 3,531.2 1,286.3 687.3 1,973.6 2,244.9 1,557.61975 ...... 4,311.5 440.4 4,751.9 1,493.3 868.7 2,362.0 3,258.6 2,389.91976 .. .................. 4,422.1 543.4 4,965.5 1,290.4 949.1 2,239.5 3,675.2 2,726.1

96 developing countries1970 ........ .. ... 11,113.0 1,505.2 12,618.2 4,274.5 1,883.3 6,157.8 8,343.7 6,460.41971 ................. .. 12,305.0 1,535.1 13,840.1 4,880.4 2,160.3 7,040.7 8,959.7 6,799.41972 ................... 15,469.9 1,928.4 17,398.3 6,070.1 2,600.4 8,670.5 11,328.2 8,727.71973 ................... 21,310.5 1,859.1 23,169.6 8,252.2 3,488.0 11,740.2 14,917.4 11,429.41974 ................... 25,506.0 2,351.7 27,857.7 9,650.8 4,549.6 14,200.4 18,206.9 13,657.31975 ........... ........ 34,696.3 3,335.1 38,031.4 9,889.4 5,772.3 15,661.6 28,142.1 22,369.81976 ......... .......... 40,207.3 2,945.2 43,152.5 11,159.0 7,063.8 18,222.8 31,993.5 24,929.7

Note: Information on the sources, definitions, and interpretation of the data, and a list of the countries included are given in the "General Notesto Annex Tables." Items may not add to totals due to rounding.

Source: World Bank and OECD.


Average Terms of Loan Commitments and Grant Element of Table 9Loans and Grants, by Region, 1970-76(Amounts in US$ millions)

Loan commitments Grantelement

Grant of leansMaturity Grace Interest element Grants and grants

Region Year Amount (years) (years) (%) (1) (amount) (%)

Africa South of the Sahara. 1970 1,943.4 25.2 6.6 3.7 46 328.1 541971 1,449.7 21.5 6.1 4.5 39 376.0 511972 1,856.2 22.1 5.9 4.3 39 626.7 551973 3,909.0 20.4 5.6 5.2 34 515.7 411974 4,148.1 20.0 5.8 5.4 32 814.6 431975 4,164.3 21.3 5.4 5.5 32 973.2 451976 4,758.5 19.6 5.1 5.4 31 866.8 42

East Asia and Pacific ..... 1970 1,879.7 22.0 5.6 5.4 32 386.2 441971 2,308.7 21.4 5.6 5.5 31 317.2 391972 3,296.8 20.2 5.6 5.7 29 407.3 371973 3,753.7 20.6 5.7 5.9 29 333.9 351974 7,642.7 15.9 5.0 7.3 17 362.0 231975 7,446.0 13.2 3.8 8.0 11 431.4 161976 10,285.6 14.0 4.5 7.8 12 328.7 15

Latin America and theCaribbean ................. 1970 4,244.2 14.2 3.5 7.0 17 296.1 22

1971 5,221.9 13.6 3.6 6.8 16 264.8 211972 7,110.4 13.0 3.5 7.0 15 267.7 191973 9,048.1 13.4 4.2 7.7 12 236.3 151974 12,522.6 12.6 3.6 7.6 12 236.0 141975 12,755.0 10.5 3.1 7.7 10 227.9 121976 18,111.0 10.4 3.1 7.5 11 167.7 12

North Africa andMiddle East.......... .... 1970 2,337.4 13.1 3.1 5.5 22 191.7 28

1971 2,783.5 12.3 3.5 5.5 23 193.7 281972 3,281.0 14.6 3.4 5.0 26 193.7 311973 5,940.7 15.2 4.4 6.5 19 189.1 221974 4,828.9 17.2 4.6 5.8 26 269.6 301975 10,486.0 15.5 5.6 6.1 23 232.9 251976 9,485.1 14.8 4.5 6.6 20 221.5 22

South Asia .... ........ . 1970 2,054.8 32.4 9.5 2.6 59 288.3 641971 1,523.2 34.4 7.7 2.5 59 346.0 671972 1,796.7 31.2 7.6 2.1 61 395.5 681973 2,677.7 32.2 7.5 2.5 59 460.8 651974 5,141.2 27.2 7.3 2.6 54 575.1 591975 4,349.0 31.9 8.1 2.5 59 1,029.3 671976 3,149.1 29.2 7.7 3.2 52 817.1 62

More advanced Mediter-ranean countries ........ . 1970 1,640.8 14.5 4.5 6.0 22 14.8 23

1971 2,631.2 18.4 6.7 6.0 25 37.4 261972 2,866.9 18.1 6.8 6.0 25 37.5 261973 2,755.6 18.6 8.1 6.5 25 123.3 291974 4,834.7 16.4 6.4 7.4 18 94.4 201975 4,686.7 15.8 6.2 7.6 15 440.4 231976 6,342.0 15.1 5.3 7.0 17 543.4 24

96 developing countries ..... 1970 14,100.4 19.3 5.2 5.3 31 1,505.2 371971 15,918.1 18.0 5.0 5.6 27 1,535.1 341972 20,208.0 17.6 4.9 5.6 27 1,928.4 331973 28,082.4 18.0 5.3 6.2 25 1,859.3 291974 39,118.1 17.0 5.1 6.4 23 2,351.4 281975 43,887.0 15.9 4.9 6.6 21 3,335.1 271976 52,131.4 14.5 4.3 6.8 18 2,945.2 22

Note: Information on the sources, definitions, and interpretation of the data, and a list of the countries included are given in the "General Notesto Annex Tables."

Source: World Bank and OECD.

Foreign and International Bond Issues, by Market and Country of Borrower Entity, 1975-77, First Half 1978 Table 10 _(US$ millions)

Foreign and international bonod issuesM: years and markelis

197S 1976 1977 First half 1978 (P)

United Other Inter- United Other Ititer- Unite(I Other Inter- Uniited Other Inter-Category of borrower entity(2 ) States nationial natiorral States national riational States riational rational States rlational liationalBorrowing counitry market markets r(iarkets Total market markets mrlokets Total market markets riiarkets Total market markets markets Total

Industrialized countriesAustralia ....................... 265.0 61.8 362.8 689.6 415.0 39.0 602.2 1,056.2 225.0 83.7 764.9 1,073.6 250.0 233.6 350.0 833.6Austria ....................... 50.0 299.0 610.4 959.4 50.0 337.5 318.4 705.9 100,0 551.3 739.6 1,390.9 - 243.9 115.2 359.1Belgium ....................... - 18.5 - 18.5 - 19.2 114.7 133.9 58.0 62.6 33.9 154.5 - - - -Canada ....................... 3,131.4 277.3 1,144.2 4,552.9 5,716.4 368.7 3,004.9 9,090.0 2,903.0 358.4 1,945.3 5,206.7 1,779.6 656.9 728.4 3,164.9Denmark ........ .................. 92.8 120.9 213.7 - 498.3 359.9 858.2 75.0 385.0 339.0 799.0 - 241.8 277.1 518.9Finland ...................... - 235.6 258.3 493.9 60.0 178.4 174.3 412.7 75.7 139.8 148.5 364.0 100.0 252.4 206.2 558.6France ...................... 235.0 338.7 1,228.4 1,802.1 630.3 870.9 1,315.7 2,816.9 166.6 679.3 1,113.1 1,959.0 75.0 392.6 493.2 960.8Germany, Federal Republic of ....... - 140.1 87.3 227.4 - 234.9 138.9 373.8 - 35.4 235.0 270.4 - - 318.7 318.7Iceland ................. ..... - - 25.1 25.1 - - 33.9 33.9 22.5 9.6 40.9 73.0 - 20.7 - 20.7Ireland ......... ............. - - 34.4 34.4 - 20.2 38.4 58.6 - 56.6 30.0 86.6 - - - -

Italy ...................... - 44.0 17.0 61.0 - - 85.0 85.0 - 69.6 230.0 299.6 - 64.4 135.0 199.4

Japan ................. ..... 100.0 413.0 1,138.2 1,651.2 293.2 558.9 1,155.8 2,007.9 350.0 362.0 1,164.6 1,876.6 70.0 434.2 525.2 1,029.4Liechtenstein ...................... - 18.9 - 18.9 - - - - -- - - - - 13.1 - 13.1Luxembourg ...................... - - - 32.7 132.9 165.6 - 127.3 455.2 582.5 - - 98.0 98.0Netherlands ..................... - 241.4 438.1 679.5 28.0 143.0 325.4 496.4 12.9 92.9 446.4 552.2 - 7.8 216.2 224.0New Zealand ............. ....... - 114.6 428.1 542.7 - 132.7 280.3 413.0 100.0 304.7 139.7 544.4 - 157.5 318.8 476.3Norway ....... ............... 200.0 311.9 810.1 1,322.0 208.0 450.3 786.7 1,445.0 315.0 422.5 1,365.8 2,103.3 350.0 476.6 815.6 1,642.2South Africa ................ . .. - 70.0 301.6 371.6 - 59.5 25.0 84.5 - - 23.9 23.9 - 71.4 134.6 206.0Sweden ...................... 40.0 467.7 560.5 1,068.2 - 522.4 587.7 1,110.1 357.3 367.7 855.1 1,580.1 125.0 353.7 139.1 617.8

Switzerland ...................... 20.0 11.3 138.9 170.2 - - 192.2 192.2 - - 7.5 7.5 - - - -

United Kingdom ......... ..... 300.0 22.6 375.5 698.1 268.0 223.0 751.3 1,242.3 43.6 9.8 1,583.5 1,636.9 525.0 50.9 421.2 997.1United States ......-... 142.4 313.2 455.6 - 27.6 405.0 432.6 - 239.4 1,313.3 1,552.7 - 265.4 556.6 822.0Total ... .................. 4,341.4 3 321.6 8,393.0 16,056.0 7,668.9 4,717.2 10,828.6 23,214.7 4,804.6 4,357.6 12,975.2 22,137.4 3,274.6 3,936.9 5,849.1 13,060.6

Sr

Developing countriesAlgeria .............. 35.0 35.0 - 147.1 147.1 -- 171.7 171.7 -- 274.8 274.8 Argentina... 16.0 - - 16.0 - - - 43.0 43.0 - 67.7 87.3 155.0 ~Bolivia ............ - - 15.0 15.0 - - - -~

Brazil . ............. 35.0 - - 35.0 - 34.4 158.9 193.3 85.0 167.3 581.2 833.5 - 140.3 373.2 513.5 ~Chile. .... ... .... 53.4 - - 53.4 - - - - - - - - - - - -

Clhina,Republic of.......... - -- --- - - 20.0 20.0Costa Rica . ...... ........- -- - - 20.0 20.0Ecuador ........ .... . . - - -- - 7.9 -7.9 -- 62.0 62.0Gabon . . ............... - - 15.0 15.0 - --- -------

Hong Kong .........- 24.5 24.5 - --- - 128.2 128.2 ---

Indonesia ............. 17.5 - - ~ 17.5 - ------ --

Iran ..............-. 30.0 30.0 - - 81.0 81.0 - 43.2 - 43.2Israel .......... 242.8 - 2.5 245.3 320.5 - 30.0 350.5 280.0 - 60,0 340.0 64.5 - - 64.5Ivory Coast ..... ...... - - - - - 10.2 10.2 - -- - - - - -

Korea, Republic of........ . - -. - - - - 74.2 74.2 - - 71.5 71.5 - 56.0 - 56,0Lebanon ............... - 4.9 4.9 - - - - - -- - - .- - -

Malaysia.. - - - 10.2 10.2 - - 43.0 43.0 - 67.7 - 67.7Mexico ............. 173.5 9.6 87.2 270.3 - 151.6 276.3 427.9 200.0 323.1 747.9 1,271.0 40.0 251.6 233.1 524.7Morocco ........ 28.3 28,3 - - 44.9 44.9 - - 28.3 28.3 - - 83.2 83.2Panama............- - - - 13.9 13.9 2.0 - 25.0 27.0 - 43.2 47.9 91.1PaPLuaNew Guinea..- ...-.... 25.0 25.0 - - 25.0 25.0 Philippines.- -~..... ....- - 367.2 - - 367.2 - 36.6 92.9 129.5 - 64.8 49.2 114.0Portugal.- -..........- - - - - - - - 50.0 50.0 - - - -

Romania.,- ..... 100.0 100.0 - - - - - - - - - - -

Saudi Arabia,. ., ... - - - - - - - - 9.9 9.9 - - - -

Singapore. .. . .-......... 12.0 12.0 - 33.9 141.2 175.1 - 97.4 57.2 154.6 - - 25.0 25.0Spain .-.... 117.1 117.1 - 52.4 191.5 243.9 - 186.1 189.9 376.0 25.0 72.2 116.9 214,1Sudan ................ 8.6 8.6 - - - - - - - - - -. -

Thailand ......-. .....- - - - - - - - - - 45.1 24.6 69.7Trinidad and Tobago.- - - - --- - 70.6 36.9 107.5Tunisia .................... 49.1 49.1 - - - - - - - -

Turkey.- - - - - 23.8 23.8 - - - - - - -

United Arab Emirates .- - -- - - - - 42.2 42.2 - - - -

Veniezuela .-.................- - 250.0 82.9 104.7 437.6 - 176.7 300.9 477.6Yugoslavia.. 90.4 90.4 - - 121.0 121. - - 30.0 30.0Total. ..... 538.2 96 460.1 1,07.9 677 2.3 1,291.7 2,51. 8 17.0 901.3 2688.6 4,06.9 129.5 1099.1 1785.0 3,013.6

Centrally planned countriesHungary ........ ...... - 100.5 100.5 - - 25.0 25.0 - - 174.6 174.6 - - - -

Poland.- - - - - 47.0 47.0 - - 74.6 74.6 - - 30.0 30.0Total. .- - 100.5 100.5 - - 72.0 72.0 - - 249.2 249.2 -- 30.0 30.0

(' Includes both vublic offerings sand private placements.mi) Borrowiaxg categories are categories as established by the World Baiok's Capital Mdaiket Systeni. (cntnud) t

kP1 Preliminary.

Foreign and International Bond Issues, by Market and Country of Borrower Entity, 1975-77, First Half 1978 (continued) Table 10 %

(US$ millions)

foreigo and internatiooial bond issues(l): years and markets

1975 1976 1977 First half 1978 (P)

United Other Inter- United Other Inter- United Other Inter- United Other Inter-Category of borrower entity(') States national national States liationial niational States liatiolial national States national nationalBorrowing country market markets markets Total market markets markets Total market markets markets Total market markets markets Total

International organizationsAfrican Development Bank (AfDB) . . . - - - - - - - - - - 17.5 17.5

Andean Development

Corporation (CAF) ........ ........ - 23.3 - 23.3 - - - - - - - - - - - -

Asian Development Bank (ADB) ... 75.0 162.7 89.3 327.0 175.0 258.6 78.2 511.8 - - 42.2 42.2 - 106.6 119.0 225.6

Central American Bank for

Economic Integration (CABEI) ...... - 10.0 - 10.0 - - - - - - - - - - -

Council of Europe .................. - - 28.6 28.6 - 56.8 68.1 124.9 - - 44.6 44.6 - 34.3 47.5 81.8

European Coal and SteelCommunity (ECSC) ................ 275.0 307.3 289.0 871.3 325.0 270.4 461.7 1,057.1 117.0 138.3 400.2 655.5 30.0 53.7 313.1 396.8

European Economic Community (EEC) - - - - 100.0 - 995.3 1,095.3 100.0 - 500.0 600.0 - - - -

Euratom ................ ....... - - - - - - - - - - 105.8 105.8 - - - -

European Investment Bank (EIB) .... 75.0 300.2 382.5 757.7 175.0 119.0 532.6 826.6 250.0 176.3 432.4 858.7 200.0 96.4 528.8 825.2

Inter-American Development

Bank (IDB) ....................... 225.0 84.9 55.6 365.5 250.0 223.0 33.7 506.7 100.0 173.3 73.9 347.2 - 42.1 35.0 77.1

International Bank for Reconstruction

and Development (IBRD) ........... 1,275.0 1,081.1 590.0 2,946.1 1,250.0 1,974.8 893.6 4,118.4 1,350.0 2,193.7 725.0 4,268.7 - 496.7 350.0 846.7

Nordic Investment Bank ..... . ..... - - - - - - - - - - 40.0 40.0 - - 35.0 35.0

Total .................. ,925.0 1,969.5 1,435.0 5,329.5 2,275.0 2,902.6 3,063.2 8,240.8 1,917.0 2,681.6 2,381.6 6,980.2 23 0.0 829.8 1428.4 2,488.2

OthersEurofima(3) ....................... 50.0 60.6 72.9 183.5 - 122.1 30.0 152.1 - 90.2 70.0 160.2 - 96.8 108.2 205.0

Interfrigo(4h.. - 19.2 - 19.2 - - - - - - - - - -

Unallocated borrowers(5

) ..- 65.7 58.0 123.7 - 282.5 82.3 364.8 - - 970.0 970.0 5.8 - 25.0 30.8

Total. ....................... 50.0 145.5 130.9 326.4 - 404.6 112.3 516.9 - 90.2 1,040.0 1,130.2 5.8 96.8 133.2 235.8

RecapitulationIndustrialized countries ............. 4,341.4 3,321.6 8,393.0 16,056.0 7,668.9 4,717.2 10,828.6 23,214.7 4,804.6 4,357.6 12,975.2 22,137.4 3,274.6 3,936.9 5,849.1 13,060.6

Developing countries .... ....... 538.2 9.6 460.1 1,007.9 687.7 272.3 1,291.7 2,251.7 817.0 901.3 2,688.6 4,406.9 129.5 1,099.1 1,785.0 3,013.6

Centrally planned countries .......... - - 100.5 100.5 - - 72.0 72.0 - - 249.2 249.2 - - 30.0 30.0

International organizations .......... 1,925.0 1,969.5 1,435.0 5,329.5 2,275.0 2,902.6 3,063.2 8,240.8 1,917.0 2,681.6 2,381.6 6,980.2 230.0 829.8 1,428.4 2,488.2 rOthers ...................... 50.0 145.5 130.9 326.4 - 404.6 112.3 516.9 - 90.2 1,040.0 1,130.2 5.8 96.8 133.2 235.8 a.

GRAND TOTAL ................... 6,854.6 5,446.2 10,519.5 22,820.3 10,631.6 8,296.7 15,367.8 34,296.1 7,538.6 8,030.7 19,334.6 34,903.9 3,639.9 5,962.6 9,225.7 18,828.2 .

(') Includes both public offerings and private placements.(1) 8orrowing categories are categories as established by the World Bank's Capital Market System.

(3) Societe Europeenne pour le Financement de Materiel Ferroviaire. a

(4) Societe Ferroviaire Internationale de Transports Frigorifiques.(5) Includes the following corporations: Adela Investment Co., S.A., Arab International Bank, Intercontainer, Ititerinioselle Finiance, S.A., Megal Finance Co., Ltd., Trans-Austria Gaslirie Finarice Co., Ltd., Trans-European Natural Gas Pipeline

Finance Co., Scandinavian Airlines System (SAS), Shell International Finance N.V., Soci6th Financi6re Europeenne.

Statistical Aninex 135

Initial Offering Yields of Publicly Offered Foreign and Table 11International Bonds, 1975 to Second Quarter 1978(Averages of straight-debt issues weighted by amount of loan)

Year Quarter

1975 1976 1977 1977 1977 1977 1977 1978 1978I II Ilil IV I 11

Issued in US marketby industrialized countries ..... . ...... 9.52 8.82 8.39 8.18 8.19 8.37 8.76 8.47 9.01

Canada . .............. ....... 9.68 9.00 8.54 8.39 8.47 8.64 8.75 8.42 9.40Other industrialized .... ........ 9.08 8.61 8.24 7.97 7.81 7.91 8.76 8.64 8.86

Developing countries ... 10.00 8.21 8.58 - 8.31 9.00 8.62 - -

Centrally planned countries ............ - - - - - - - - -International organizations .............. 8.64 8,45 7.89 9.13 7.85 7.82 - 9.00 -

World Bank ............. . .......... 8.68 8.29 7.70 - 7.66 7.74 - - -

Other international organizations(') . ... 8.56 8.65 8,36 9.13 8.27 8.16 - 9.00 -

Others(2)..................... ..... 9.00 - - - - - - -

Issued in other national marketsby industrialized countries ... ...... ..... 7.99 6.52 5.87 6.25 5.79 6.12 5.34 5.47 5.45

United States.... ................... 7.61 - 5.08 5.43 4.58 - - 4.12Other industrialized...r.I.I.......I... ......... 8.00 6.52 5.89 6.30 5.85 6.12 5.34 5.54 5.45

Developing countries ......... ......... - 9.06 6.53 5.54 - 5.67 6.66 6.35 6.52Centrally planned countries ......... -. . .international organizations ..... 8.34 7.57 6.69 5.23 6.64 7.27 6.35 5.55 7.28World Bank .... ...... . ....... 7.95 7.40 6.30 5.23 6.47 6.43 6.23 5.79 -

Other international organizations('). . .. 8.58 7.75 7.36 - 6.99 8.70 6.52 4.91 7.28Others2) ..................... . 7.97 6,83 4.53 4.50 - 4.56 - 3.80 6.66

Issued in international marketsby industrialized countries ........ _ _ . 9.15 8.63 7.63 7.98 7.55 7.61 7.40 7.34 7.20

United States.... . .................. 9.66 9.24 7.81 8.55 8.26 6.95 8.66 9.47 8.43Other industrialized ............ 9.12 8.61 7.61 7.91 7.48 7.73 7.38 6.99 7.06Developing countries ... ................ 9.02 8.88 7.82 8.57 7.96 7.42 7.51 6.83 6.74Centrally planned countries ............. 8.09 8.60 7.01 8.96 - - 6.40 - -

International organizations . ............. 883 7.98 7.64 8.02 7,72 7.25 7.50 7.48 7.84World Bank ............. - - 6.16 - - 6.16 - - -

Other international organizations(') . . 8.83 7.98 7.72 8.02 7.72 7.64 7.50 7.48 7.84Others(2) .......................... 8.81 8.42 7.78 6.95 - - 7.98 6.78 -

(ii Category includes: African Development Bank (AfDB), Asian Development Bank (AWB(, Council of Europe, European Coal and Steel Community(ECSC), European Economic Community (EEC), Euratom, European investment Bank (EIB), Inter-American Development Bank (IDB), Nordic Invest-ment Bank.

(2) Category includes: Societe Europeenne pour le Financement de Materiel Ferroviaire (Eurofima), Societe Ferroviaire Internationale de TransportsFrigorifiques (Interfrigo),and the followingcorporations:Adela Investment Co., S.A., lntercontainer, Intermoselte Finance, S.A., Megal Finance Co.,Ltd., Scandinavian Airlines System (SAS), Shell International Finance N.V., Societe Financiere Europeenne (SFE).

Bank Appendices

Financial StatementsPage

Appendix A Balance Sheet ..... .. . .. . ........ 138

Appendix B Statement of Income . . 140Statement of Accumulated Net Income .... . ....... 140Statement of Changes in General Reserve ....... ... 140

Appendix C Statement of Changes in Financial Position .......... 141

Appendix D Summary Statement of Loans . ............. 142

Appendix E Summary Statement of Borrowings ....... ....... . 145

Appendix F Statement of Subscriptions to Capital Stockand Voting Power ...................... ........ 146

Appendix G Notes to Financial Statements ........ ............ 148

REPORT OF INDEPENDENT ACCOUNTANTS . . 151

Appendix H Statement of Loans Approved duringFiscal Year 1978 ..... ... ....... .. ...... ....... 152

138 Bank Appendices

Balance SheetJune 30, 1978 and June 30, 1977

Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

Assets 1978 1977

DUE FROM BANKSUnrestricted currencies (including interest-bearing demand deposits$70,193-1978, $38,905-1977) ... ....... ............................ $ 200,984 $ 154,235

Currencies subject to restrictions-Note B 74,131 66,984$ 275,115 221,219

INVESTMENTS-Note CObligations of governments and their instrumentalities $ 6,957,820 5,169,437Time deposits and other obligations of banks and financial institutions .1,747,937 2,625,005

8,705,757 7,794,442RECEIVABLE ON ACCOUNT OF SUBSCRIBED CAPITAL-Subject to restrictions-Note BNon-negotiable, non-interest-bearing demand obligations .$ 490,118 454,094Amounts required to maintain value of currency holdings. 363 378

490,481 454,472RECEIVABLES-OTHERSales of investment securities ........................................... $ 363 518From purchasers on account of effective loans agreed to be sold (includingundisbursed balance $55,244-1978, $28,882-1977) . .66,161 30,403

Accrued income on loans. .365,594 293,481Accrued interest on investments .. 109,023 61,984

541,141 386,386

LOANS (See Appendix D and Appendix G-Note B) $37,796,228 31,085,422Less-Loans approved but not yet effective .4,731,371 4,053,330Effective loans (including undisbursed balance $13,705,948-1978,$11,307,851-1977) .................................................. 33,064,857 27,032,092

OTHER ASSETSLand and buildings-Less accumulated depreciation ($12,003-1978,510,807-1977) .$ 67,616 66,020

Unamortized issuance costs of borromings 100,486 87,243Notional amounts required to maintain value of currency holdings-Note B 372,600 326,644Maintenance of value of capital subscriptions outstanding on loans,not yet due-Note B .. 2,891 2,232

Miscellaneous. ...................... ........................... 69,730 19,356613,323 501,495

$43,690,674 .$36,390,106

Financial Statements 139

Appendix AInternational Bank for

Reconstruction and Development

Liabilities, Capital and Reserves 1978 1977

LIABILITIESAccrued charges on borrowings ......... ..... ................. . $ 581,122 $ 459,138Amounts required to maintain value of currency holdings-Note B ..... ..... 3,864 6,158Notional amounts required to maintain value of currency holdings-Note B. . 115,811 55,200Accounts payable and other liabilities ....... ... 27,722 38,946Payable for investment securities purchased .... .. 50,162 63,813Due to International Development Association-Note E ........... ........ 734,503 648,628Undisbursed balance of effective loans (See Appendix D)Held by Bank ......... ............ ............ .... ....... $13,705,948 11,307,851Agreed to be sold ......... ................. .... ... 55,244 28,882

13,761,192 11,336,733

Borrowings (See Appendix E) ......... ..... ... . .......... ... .. $22,602,497 18,477,548Less-Net unamortized discounts and premiums ............ . ....... 21,060 18,073

22,581,437 18,459,475

CAPITAL AND RESERVESCapital stock (See Appendix F and Appendix G-Note B)Authorized capital (SDR 34,000,000-1978, United States dollars of 1944$34 ,000,000-1977)Subscribed capital (SDR 26,659,700-1978, United States dollars of 1944$25,589,000-1977) .$33,045,498 30,869,253

Less-Uncalled portion of subscriptions (SDR 23,993,730-1978,United States dollars of 1944 $23,030,100-1977). 29,740,948 27,782,328

3,304,550 3,086,925

Payments on account of pending subscriptions (See Appendix F) ........... 46,911

Special reserve-Note D ........................... ..... .... 292,538 292,538

General reserve (See Appendix B and Appendix G-Note D) ....... ......... 1,952,751 1.733,102

Accumulated net income (See Appendix B) ... ........ ........ 238,111 209,450$43,690,674 $36,390,106

140 Bank Appendices

Statement of Income Appendix BInternational Bank for


For the fiscal years ended June 30, 1978 and June 30, 1977Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

July 1-June 301977/78 1976/77

Income

Income from loans:

Interest ......... $.......12............... ............................................ $ 1,218,443 $ 985,271Commitment charges ........... 1 ...................................................... 106,149 87,458

Income from investments-Notes C and G ................................................. 613,560 536,054Other income-Note G ................................................................ 8,414 8,593

Total Income ..... ........................................................... $1,946,566 $1,617,376

ExpensesInterest on borrowings ...................................... ......................... $1,541,529 $1,251,922Administrative expenses-Notes F and G ..................... .................... ........ 148,126 140,802Bond issuance and other financial expenses ................................................. 18,726 14,508Discount on sales of loans .................. ......... 4 ............................... .... 694

Total Expenses .................. ............................................. $1,708,455 $1,407,926

Net Income-Notes A and D..0 ....................................................... $ 238,111 $ 2 09,450

Statement of Accumulated Net IncomeFor the fiscal years ended Juoe 30, 1978 and June 30, 1977Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

July 1-June 301977/78 1976/77

Accumulated net income at beginning of fiscal year ........................................... $ 209,450 $ 219,853Allocation to General Reserve ............................................................. (109,450) (119,853)Transfer to International Development Association ............................................ (100,000) (100,000)Net income for fiscal year ............... ................................................. 238,111 209,450

Accumulated net income at end of fiscal year ................................................ $ 238,111 $ 209,450

Statement of Changes in General ReserveFor the fiscal years ended June 30, 1978 and June 30, 1977Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

July 1-June 301977/78 1976/77

Balance at beginning of fiscal year .......................................................... $1,733,102 $1,623,515Allocation of portion of accumulated net income ..................................... ..... 109,450 119,853Translation adjustments-Notes A and D. 0 ............................................... 110,199 (10,266)

Balance at end of fiscal year ............................................................. $1,952,751 $1,733,102


Statement of Changes in Appendix CInternational Bank for

Financial Position Reconstruction and Development

For the fiscal years ended June 30, 1978 and June 30, 1977Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

July 1-June 30

1977/78 1976/77

Funds Provided

Operations:Net income (See Appendix B) ......................................................... $ 238,111 $ 209,450Items not requiring or providing cash:Accrued income on loans and investments ............................................... (119,151) (58,213)Accrued charges on borrowings and administrative expenses . . ........... 118,892 107,520Depreciation ....................................................... .......... 1,428 1,428Amortization of discounts, premiums and bond issuance expenses . . ......... 18,464 13,094

Cash provided by operations ................. ........................... $ 257,744 $ 273,279Borrowings (See Appendix E) ................ ......................................... 3,618,741 4,727,700Adjustments of borrowings outstanding as a result of currency depreciations andappreciations (See Appendix E) .......................................................... 1,971,461 566,294

Repayments of loans to the Bank(l)(2) ..... ........................ ........... 830,889 704,555Sales of loans(2) ............................................................... . 161,622 165,229Translation adjustments-Notes A and D ......................... ....................0 110,199 (10,266)Increase in capital subscriptions due to change in basis of valuation from 1944 dollar to SDR-Note B. . .......................... ......... 88,461

Capital subscriptions and maintenance of value adjustments .................................. 83,714 16,355Decrease in amounts receivable for investment securities traded ........................ 155 3,670Other-Note B ........................................................... ...... 107,521 58,971

Total Funds Provided .... _ ...................................................... $7,230,507 $6,505,787

Funds UsedDisbursements on loans .............. ................................................. . $2,817,418 $2,728,333Adjustments of loans outstanding as a result of currency depreciations and appreciations ......... 1,819,156 457,503Retirement of borrowings (See Appendix E) . . .................. 1,465,253 1,463,108Payments on transfers to International Development Association .................... .......... 14,125 9,815Decrease in amounts payable for investment securities traded .. ............................. 13,651 199,006Other-Note B....... .......................................................... 142,840 94,076

Total Funds Used ...................................................... .......... $6,272,443 $4,951,841

Increase in Unrestricted Currencies and Investments ............................ $ 958,064 $1,553,946

(l) The dollar equivalents of loan principal repayments are recorded at the average of the historical rates of exchange prevailing at the time the fundswere originallydisbursed. The difference between the average histarical rates of exchange and the market ratesat June 3, 1978is included in Adjust-ments of Loans Outstanding as a Result of Currency Depreciations and Appreciations. The dollar equivalentof these loan principal repayments atthe market rates of exchange in effect on the dates of repayment, has been calculated to be $888,095,000 ($734,960,000-1977).

(2) Repaymentsof loans in respect of grant participations, which in the previous fiscal year were included under Repayments of Loans to the Bank, havebeen shown under Sales of Loans. For comparative purposes, amounts for the previous fiscal year have been reclassified.

142 Bank Appendices

Summary Statement of LoansJune 30, 1978 and June 30, 1977

Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

June 30, 1978

Effective loans held by Bank Loans Percent ofapproved total effective

Disbursed Undisbursed but not yet and non-Members liable as borrower or guarantor

t') portion portion(') Total effective(') effective loans

Algeria ......... ........... $ 191,067 $ 381,601 $ 572,668 $ 172,000 1.97Argentina4) ............................. 438,980 327,459 766,439 162,853 2.46Australia ......... .................... 119,062 811 119,873 - .32Austria . ............................ 27,429 - 27,429 - .07Bahamas ............................. 640 9,489 10,129 - .03

Bahamas, Barbados, Grenada, Guyana,Jamaica, Trinidad and Tobago, andUnited Kingdom(5 . . ........... 3,314 17,046 20,360 - .05

Bangladesh . ............... .......... 61,148 - 61,148 - .16Bolivia(4) . .... ............ . 64,422 147,232 211,654 34,000 .65Botswana. ............................ 45,768 25,279 71,047 14,500 .23Brazil ................ ............ 1,784,801 1,229,396 3,014,197 688,000 9.80

Cameroon . .............. 98,135 94,793 192,928 16,500 .55Chile .............. ............ .. 188,698 44,294 232,992 35,000 .71China, Republic of . ........... 284,960 - 284,960 - .75Colombia ............................ . 858,723 446,045 1,304,768 328,840 4.32Congo, People's Republic of the ............ 44,235 31,100 75,335 - .20

Costa Rica ............................. 154,605 91,189 245,794 25,400 .72Cyprus ..... ........... ............. 45,194 40,542 85,736 8,500 .25Denmark . ............................ 10,188 - 10,188 - .03Dominican Republic . ........ .. 31,625 28,299 59,924 - .16Ecuador . .......................... .. 54,336 137,101 191,437 - .51

Egypt, Arab Republic of . .......... 111,509 534,240 645,749 40,000 1.81El Salvador . ............................ 68,531 57,699 126,230 32,000 .42Ethiopia . .. ...... 88,542 469 89,011 - .24Fiji ....... ...................... 27,112 9,560 36,672 14,900 .14Finland .......................... ... 78,180 4,121 82,301 - .22

Gabon .................... ......... 26,230 4,821 31,051 - .08Ghana ............................. 63,834 113,521 177.355 - .47Ghana, Ivory Coast, and Togo(t) ....... . . - 49,500 49,500 - .13Greece .................. 77,161 171,549 248,710 150,122 1.06Guatemala ............................. 68,931 106,212 175,143 72,000 .65

Guinea ............................. 93,810 - 93,810 - .25Guyana ............................. 25,793 14,949 40,742 - .11Honduras ............................. 119,940 52,912 172,852 10,500 .49Iceland .............. ............... 41,726 - 41,726 - .11India ............... .............. 647,747 571,188 1,218,935 225,000 3.82

Indonesia ............................. 533,514 1,033,875 1,567,389 245,061 4.80Iran ............................. 706,208 143,304 849,512 - 2.25Iraq ............................. 83,495 15,774 99,269 - .26Ireland ............................. 97,944 38,744 136,688 - .36Israel ............................. 129,607 59,659 189,266 - .50

Italy ... .......................... 34,297 - 34,297 - .09Ivory Coastt7) . ..... ..... .............. 155,882 163,274 319,156 125,000 1.18Jamaica . ........... ..... 118,678 105,123 223,801 - .59Japan ........................... .. 398,512 - 398,512 - 1.05Kenya(8) ........................... __ 260,726 215,989 476,715 55,000 1.41

Finianicial Statenetts 143

Appendix DInternational Bank for


June 30, 1978

Effective loans held by Bank Loans Percent ofapproved total effective

Disbursed Undisbursed but not yet and non-Members liable as borrower or guarantor(X' portion portion(

2Total effectiveisi effective loans

Kenya, Tanzania, and Uganda(6 .. . $ 205,079 $ 9,233 $ 214,312 $ - .57Korea, Republic of . . ........ 1,107,064 739,117 1,846,181 230,000 5.49Lebanon . . ........................... 10,808 83,709 94,517 - .25Liberia ..... ....................... 46,897 31,516 78,413 30,800 .29Madagascar ................ ........ 30,037 6,750 36,787 - .10Malawi ....... ... 3,568 22,632 26,200 - .07Malaysia ... ......................... 416,150 421,808 837,958 60,000 2.37Mauritius. ... .................... .. 17,001 21,131 38,132 30,200 .18Mexico ............................ 1,710,426 676,465 2,386,891 469,500 7.56Morocco ............................ 404,557 301,489 706,046 84,500 2.09New Zealand ...... .............. .. 45,145 - 45,145 - .12Nicaragua . .............. ......... 90,719 43,515 134,234 3,000 .36Nigeria ............................. 509,321 287,635 796,956 90,000 2.35Norway ......................... 39,680 - 39,680 - .10Oman ........ ............ ......... 3,516 21,423 24,939 - .06Pakistan ............................. 438,452 128,836 567,288 - 1.50Panama ....... . ............... ...... 112,289 87,268 199,557 11,515 .56Papua New Guinea . . .................. .. 36 11,965 12,001 3,500 .04Paraguay . . ........................... 38,082 50,700 88,782 39,000 .34Peru ............................. 220,791 247,314 468,105 - 1.24Philippines ........................... 532,606 759,052 1,291,658 291,900 4.19Portugal ............... ............. 47,110 108,038 155,148 131,000 .76Romania ............ .......... 385,234 471,361 856,595 60,000 2.42Senegal ......... .... ............... 34,368 39,729 74,097 11,000 .22Sierra Leone ............ .. . 13,360 5,000 18,360 - .05Singapore ......... ................... 122,875 29,857 152,732 - .40Spain _............. ............ 296,032 58,145 354,177 - .94Sri Lanka. .............. .......... . 39,962 4,207 44,169 - .12Sudan ............................. 71,030 20,000 91,030 12,000 .27Swaziland ............ ................. 8,864 15,418 24,282 - .06Syrian Arab Republic . . .... ...... . . 103,231 229,247 332,478 98,000 1.14Tanzania8' ... . ............. .......... 141,921 107,184 249,105 25,000 .72Thailand . . . 458,700 555,158 1,013,858 8,600 2.70Togo ........................... 2,784 743 3,527 - .01Trinidad and Tobago . . ...... 55,875 14,037 69,912 - .18Tunisia . . . ....................... 193,596 140,330 333,926 107,930 1.17Turkey ..................... ... . 660,864 576,666 1,237,530 205,000 3.82Uganda(9) ..... _......... 1,536 451 1,987 - .01United Kingdom ............ ..... . 30,955 - 30,955 - .08Uruguay .......... ................... 88,212 18,752 106,964 9,500 .31Venezuela ............................. 231,199 7,674 238,873 - .63Yugoslavia ............................. 987,101 601,507 1,588,608 253,000 4.87Zaire .............. .............. . 79,224 32,825 112,049 - .30Zambia ............. ................ 335,109 122,992 458,101 11,250 1.24Sub-totals memberst " . ........... $18,936,605 $13,629,038 $32,565,643 $4,731,371

International Finance Corporation(u) .......r 422,304 76,910 499,214 - 1.32Totals-June 30, 1978 . ............ $19,358,909 $13,705,948 $33,064,857 $4,731,371 100.00

Totals-June 30, 1977 . ............ $15,724,241 $11,307,851 $27,032,092 $4,053,330(continued)

144 Banik Appendices

Summary Statement of Loans (concluded) Appendix DI nternational Bank for

June 30, 1970 and Juno 30, 1077 Reconstruction and DevelopmentExpressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

f1) In some instances loans were made, with tee guarantee xuoat (Guarantor) but is also partially guaraxteed by Upperof a member, in territories which at the time were included in Volta.that member's membership hot which subsequently became (xl Includes portions of lxans made to the East Africanindependent and members of the Bank in their own right Community.(except Malta which although independent is not a member )RersnsptisoflasmdtoheEtArcnof the Bank). In all these instances these territories have Comni ereetsy otoso.on ad oteEs fiuassumed liability as a borrower or guarantor. In order to avoid Cmuiydouble counting, liabilities for these loans are shown under Sm ayo urnisRpybeothe same of the original member (whose guiarantee continues Summaryv Lofaurnceneaybeounaftected). These loans are shown below together with an ___________________________indication of the member under whose namne they are listed. Currencies 1970 1977

Amounts Australian dollars ....... $ 112,575 $ 91,316Austrian schilliogs.... ..... 56,647 63,854

GIUARAtNTORtS 1910 1077 Belgian francs .... ... .. 165,201 182,573Borrowers (in throusands) Brazilian cruzeiros ... .. . 12,572 16,569AUSTRALIA Burmese kyats ......... 917 1,267

Papua New Guinea. ...... $48,644 $45,192 Canadian dollars ... ... 153,849 236,169UNITED KINGDOM Danish kroner ......... 27,135 26.01S

Keniya............... 971 1,218 Deutsche mark,. ....... 5,803,754 4,561,456Malta ............... 14 15 Finnish markkaa. ....... 16,484 23,780Mauritius ............. 1,759 igos8 French francs. ........ 142,074 151,174Nigeria ............... - 2,670 Ghanaian cedis ......... 2,674 3,218Singapore. .. ~........... 7,568 7,847 Greek drachbmas......... 2,686 2,462

'Southern Rhodesia and Zambia .... 17,010 16,011 Indian rupees. ....... 65,074 55,601Swaziland ..-........... 2,900 3,071 Iranian nials.......... 31,149 28,933Trinidad and Tobago. ........ 725 725 Iraqi dinars. ._...... 3,460 3,250Uganda......8 19 Irish pounds .......... 13,685 11,338

½xoaxs mode for moint benefit of territories listed. (Southern Rhodesia is Italian lire... ....... 57,365 59,127irciuded in the membership at the United Kfingdom.) Japanese yen ......... 2,767,442 1,502,597

Kuwaiti dinars ......... 402,168 409,886Loans made to the International Finance Corporation are not Lebanese pounds ........ 14,166 25,657guaranteed by memnbers. Libyan dinars.......... 113,204 115,451

(0; These amounts do not include $30,328,000 ($20,214,000- Luxembourg francs ....... 7,186 6,0651977) of effective loans, which the Book has agreed to sell Malaysian ringgits........ 34,692 31,067and grant participations of $24,916,000 ($8 .668,000-1977). Mexican pesos ......... 26,578 24,743The grant partiCipations represent participations taken in a Netherlands guilders ...... 573,960 367,908number of loans on a grant basis under the terms of an aid Nicaraguan cordobas ...... 235 -cooperation agreement between a member country and the Norwegian kroner........ 39,436 39,409Bank. Of the undisbstrsed balance, the Bank has entered into Portuguese escudos....... 8,390 9,326irrevocable commitments to disburse $40,767,000 ($32,017,000 Pounds sterling......... 184,971 181,49141977). Rials Omani .......... 736 723(3) Loan agreements totaling $3,189,351,000 ($2,838,530,000 Saudi Arabian riyals....... 165,715 159,444

-1977) boon been signed, but the loans do not becomne Singapore dollars........ 5,792 5,125effeutive and disbursements thereunder do nut start until the South African rand ....... 31,318 44,358borrowers or guarantors, if any, take certain actions and Spanish pesetas......... 49,811 50,629furnish certain documents to the Bank, and agreements pro- Sri Lanka ropees ........ 50 193oldingftsr loans totaling $1 ,542,020,000 ($1,214,800,000-1977)have been approved by the Bank but have not been signed. Sudanese pounds........ 2,334 2,873Those amounts are net of $16,879,000 ($30,970,000-1977) Swedish kronor......... 61,403 103,756which the Bunk has agreed to sell. Swiss francs. ... ~...... 2,756,783 1,712,283

(4) ~~~~~~~~~New Taiwan dollars ..... 23,348 22,496xiOne loan equivalent to $23,250,000 is shown under Tunisian dinars......... 1,657 844

Bolivia (Guarantor) but is also guaranteed by Argentina. United Arab Emirates dirhams. 66,025 83,529(s; Loans made to the Caribbean Development Bank for United States dollars ...... 5,228,104 5,171,185

the benefit of the territories of the members listed (in the Venezuelan b-olivares ...... 126,104 128,065case of the United Kingdom, the territories are those of itsAssociated States and Dependencies in the Caribbean region). Disbursed portion of effectiveThe mnembers will be severally liable as guarantors to the loans held by Book.......$19,358,909 $15,724,241ectent of sub-loans mode in their territories. Add-Undisbursed portion of

16, Members are jointly and severally liable. effective loans held by Bank.. 13,709,948 11,307,851(7) One loan equioalent to $23,000,000 is shown under Ivury Effective loans held by Bank .. $33,064,857 $2_7,0_32,092

Maturity Structure of Effective LoansPeriods tone 30, 1070 Periods tune 30, 1077

July 1, 1978 to June 30, 1979 ..... ... $ 849,937 July 1, 1977 to June 30, 1978 ........ $ 809,558July 1, 1979 to June 30, 1980.... ... 980,785 July 1, 1978 to June 30, 1979......... 849,810July 1, 1980 to June 30, 1981 ....... I 1,295,064 Joly 1, 1979 to June 30, 1980... ... 1,031,925July 1, 19818to June 30, 1982...... .. 1,583,689 July 1, 1980 to June 30, 1981 ........ 1,260,337July 1, 1982 to June 30, 1983....1,762,407 July 1,01980 to June 30, 0982 .....- 1,353,494July 1, 1983 to June 30, 1988 ..... 9,455,493 July 1, 1982 to June 30, 1987......... 7,341,298July 1, 1988 to June 30, 1993 ... .... 8,039,111 July 1, 1987 to June 30, 1992 .... ... 6,712,486July 1, 19930to June 30, 1998........ 4,639,233 July 1, 1992 to June 30, 1997.......4,457,310July 1, 1998 to June 30, 2003......1,226,390 July 1, 1997 to June 30, 2002......... 1,738,095July 1, 2003 to June 30, 2007_....... 73,540 July 1, 2002 to June 30, 2007_....... 122,539Undetermined(') ... ......... 3,159,208 Undetermined(' ......1 . ........ 1,355,240Total ............. ...... $33,064,857 Total .................... $27,032,092

0) Represeots cancellations, prepapments and exchange adjustments which have sot bxen allocated to specifi maturities,

Finianzcial Stateinents 145

Summary Statement of Borrowings Appendix EInternational Bank for

June 30, 1978 and June 30, 1977 Reconstruction and DevelopmentExpressed in United States dollars (in thousands)-See Notes to Financial Statemnents, Appendix G

Operations during the fiscal year endedJune 30, 1978

Repayments and PicplWeighted average DuedtsePrincipal sinking fund Outstanding inerfestirves at

outstanding at and purchase Translation at Ju ne ineetrts JunleCurrencies payahle June 30, 1977 Borrowings fund purchases adjustments 38, 1978 1978 1977 39, 1978

Belgian francs. .. ..... $ 75,441 $ - $ (3,170) $ 7,705 $ 79,976 7.13% 7.14% 1979-1986Canadian dollars .. . 129,448 - (12,407) (6,875) 1 10,1 66 6.55 6.60 1978-1993Deutsche mark. . .. 4,493,574 1,117,953 (549,770) 625,999 5,687,7 56( 1 7.09 7.37 1978-1997French francs .. . 28,805 - (2,840) 2,526 28,491 7.16 7.16 1979-1987Italian lire........ 50,860 - - 1,799 52,659 7.23 7.23 1978-1988Japanese yen . . 1,652,895 623,044 (21,252) 664,365 2,919,0521"1 7.17 7 .38 1978-1992Kuwaiti dinars ... 373,156 - (36,822) 16,237 352,571 7.08 7.09 1978-1992Lebanese pounds . ... 24,370 - (24,958) 588 - - 6.76 -Libyan dinars . ... 101,335 - - - 101,335 7.62 7.62 1983Netherlands guilders 335,181 40,444 (11,7777) 39,294 403,142 7.51 7.49 1978-1988Potinds sterling. . . 8,902 - (650) 723 8,975 5.27 5.27 1979-1982Saudi Arabian riyals 141,643 -- 3,495 145,138 8.00 8.00 1984Swedish kronor 33,534 - (545) (1,299) 31,690 6.60 6.59 1979 -1 992Swiss francs .1,655,086 369,503 (5,884) 616,507 2,635,212111 6.14 6.4 1 1979-1992United Arab Emirates

dirhams .. 76,963 - -397 77,360 8.00 8.00 1980-1989United States dollars.... 9,172,884 1,467,797 (792,848) - 9,847,833t2i 7.62 7.61 1978-2002Venezuielan bolivares 123,471 - (2,330) - 121,141 7.92 7.92 1978 -1989Principal outstandingat face value...... $18,477,548 $3,618,741 $(1,465,253) $1,97 1,461 $22,602,497 7.24 7.40Less-Net unamortizeddiscounts andpremiums 18,073 2,987 -- 21,060

Totals _$18,459,475 $3,615,754 $(1,465.253) $1,971,461 $22,581,437

lin addition, the Bank has snbsequently borrowed on enterer into agreements to horrow Y 75,000 million (US equivalent $366.4 million), SwF 750nillion (US eqs valerit $484.4 million); and DIV, 1,159 million (US equivalent $554.1 million) including a refinancing of DM 259 million (US equivalent$128.5 million) motoring August 1, 1978.I nclodes $184 mnillion horrowed from the Interest Subsidy Fund which is administered by the Bank. This Fund, wvh,ch obtained its resources frmmvol untary contributions from memuber governments, was established to subsidize the interest payments to the Bank on loans mode to poorerdevelopsing countries.

Maturity Structure of Borrowings Outstanding

Periods Jove 30, 1978 Periods June 30, 1977

July 1, 1978 to June 30, 1979.. $ 1,736,664 July 1, 1977 to June 30, 1978 .. $1,382,424Julyl1, 1979 to June 30, 1980.. . 2,432,774 Julyl1, 1978 to June 30, 1979 1,543,830Julyl1, 1980 toJune 30, 1981. .... 1,991,681 July 1, 1979 to June 30, 1980 .. 1,452,368July 1, 1981 to June 30, 1982 2,276,573 July 1, 1980 to June 30, 1981 ... 1,795,41 8July 1, 1982 to June 30, 1983 . ... 2,550,621 July 1,51981 to June 30, 1982. . .... 1,996,732

July 1, 1983 to June 30, 1988 ... 7,828,576 July 1, 1982 to June 30, 1987 . 7,323,105July 1, 1988 to June 30, 1993 ... 2,307,508 July 1, 1987 to June 30, 1992 .. 1,635,241July 1, 1993 to June 30, 1998.1,064,374 July 1, 1992 to June 30, 1997 .. 988,430July 1, 1998 to June 30, 2002 . 413,726 July 1, 1997 to June 30, 2002 .. 360,000

Total... $22,602,497 Total .... $18,477,548

146 Bank A ppendices

Statement of Subscriptions to Capital Stockand Voting PowerJune 30, 1978 and June 30, 1977

Expressed in thousands of units ot currency-See Notes to Financial Statements, Apspendix G

Amounts paid in Amounts subject to callSubscriptions (Nate B) (Nate B) Voting power

Amounts Expressed Eapressedexpressed Expressed in Expressed in

Par- in in current in carrent Num- Per-cent spe ci al special United special United ber cent

ef drawing drawing States drawing States nt efMembers Shares tatal rig hts rights dollars rights dollars notes totalAfghanistan,........ 300 .11 SDR 30,000 SDR 3,000 $ 3,719 SDR 27,000 $ 33,467 550 .18Algeria........... 1,109 .42 1 10,900 11,090 13,746 99,910 123,718 1,359 .45Argentina .......... 4,701 1 .76 470,000 47,090 50,270 423,000 524,433 4,051 9 .05Australia . ..... .. 5,071 2.13 567,100 56,710 70,293 510,300 632,644 5,921 1.08Aastria ........... 2,696 1.01 269,600 26,060 33,418 242,640 300,759 2,946 .98Bahamas .......... 170 .06 07,100 1,710 2,020 15,300 19,076 421 .14Bahrain........... 85 .03 8,500 850 0,054 7,650 9,492 335 .11Bangladeshli; ........ 1,067 .40 106,700 10,670 13,226 96,030 119,032 1,317 .44Barbados .110 .. ... l .04 11,000 0,100 0,376 9,990 02,383 360 .12Belgium. .. I...... 5,545 2.08 554,500 55,450 68,732 499,050 600,587 5,795 1.93Benin. .......... 100 .04 00,000 1,000 1,239 9,000 11,156 350 .12Bolivia ........... 210 .00 21,000 2,100 2,603 18,900 23,427 460 .15Botswana. ........ 43 .02 4,300 430 533 3,870 4,797 293 .10Brazil ........ ... 3,733 0.40 373,300 37,330 46,272 335,970 416,445 3,083 1.33Burma ... ........ 507 .19 50,700 5,070 6,284 45,630 56,560 757 .25Burundi.0......... 50 .06 15,000 1,500 1,859 13,500 10,734 400 .13Cambadia .......... 214 .08 21,400 2,140 2.653 19,260 23,873 464 .15Cameroon .......... 200 .08 20,000 2,000 2,479 18,000 22,312 450 .15Canada ........... 11,122 4.17 1,112.200 111,220 137,860 1,000,980 1,240,745 11,372 3.80Central African Empire ... 100 .04 10,000 1,000 1,239 9,000 11,156 350 .12Chad ............ 100 .04 10,000 1,000 1,239 9,000 11,156 350 .12Chile ............ 943 .35 94,300 9,430 11,689 84,870 105,199 1,193 .40China, Republic of ..... 7,500 2.81 750,000 75,000 92,965 675,000 936,683 7,750 2.59Colombia. ......... 1,175 .44 117,500 11,750 14,565 105,750 131,080 1,425 .48Comoros........... 16 .01 1,600 160 198 1,440 1,785 266 .09Congo, People's Republicof the ........... 100 .04 10,000 1,000 1,239 9,000 11,156 350 .12

Costa Rica.......... 107 .04 10,700 1,070 1,326 9,630 11.937 357 .12Cyprus ........... 278 .10 27,800 2,780 3,446 25,020 31,013 528 .18Denmark(') ......... 2,211 .83 221,100 22,110 27,406 199,990 246,654 2,461 .82Dominican Repablic. .. ~... 175 .07 17,500 1.750 2,169 15,750 19,523 425 .14Ecuador........ .. 368 .14 36,800 3,680 4,561 33,120 41.053 618 .21Egypt, Arab Republic ot .. 1,421 .53 142,100 14.210 17,614 127,890 159,523 1,671 .56El Salvador ......... 120 .05 12,000 1,200 1,487 10,800 13,387 370 .12Equatorial Guinea .....- 64 .02 6,400 640 793 5,760 7.140 314 .10Ethiopia........... 114 .04 11,400 1,140 1,413 10,260 12,718 364 .12Fiji... ........ 111 .04 11,100 1,110 1,376 9,990 12,383 361 .12Finland ........... 1,621 .61 162,100 16,210 20,093 145,890 100,035 1,871 .62France ... ........ 12,792 4.80 1,279,200 127,920 158,561 1,151,280 1,427,046 13,042 4.35Gabon ..... ... .. 120 .05 12,000 1,200 1,487 10,800 13,387 370 .12Gambia, The.. ...... 53 .02 5,300 530 657 4,770 5,913 303 .10Germany, FederalRepablic nof 1n... ... 13,653 5.12 1,365,300 136,530 169,233 1,228,770 1,523,007 13,903 4.64

Ghana ........... 734 .28 73,400 7,340 9,090 66,060 01,883 984 .33Greece ........... 736 .28 73,600 7,360 9,123 66,240 82,106 986 .33Grenada .......... 17 .01 1,700 170 211 1,530 1,896 267 .09Guatemala.......... 123 .05 12,300 1,230 1,525 11,070 13,722 373 .12Guinea ........... 200 .08 20,000 2,000 2,479 18,000 22,312 450 .15Guinea-Bissau,,_.... 27 .01 2,700 270 335 2,430 3,012 277 .09Guyanan........... 171 .06 17,100 1,710 2,120 15.390 19,076 421 .14Haiti ............ 150 .06 15,000 1,500 1,859 13,500 16,734 400 .13Honduras .......... 84 .0 8,400 840 1,041 7,560 9,371 334 .11Iceland......_ ... 184 .07 18,400 1,840 2,261 16,560 20,527 434 .14India ............ 9,000 3.38 900,000 90,000 111,S58 810,000 1.004.019 9,250 3.09IndonesiaM ...... ,. 2,200 .83 220,000 22,000 27,270 198,000 245,427 2,450 .82Iran ............ 1,580 .59 158,000 15,800 19,585 142,200 176.261 1,030 .61Iraq ............ 698 .26 69,800 6,980 8,652 62,820 77,867 948 .32Ireland(').......... 1,032 .39 103,200 10,320 12,792 92,880 115,128 1,282 .43Israel,........... 1,108 .42 110,800 11,080 13,734 99,720 123,606 1,358 .45Italy. ..... ..... 8,525 3.20 852,500 85,250 105,670 767,250 951,029 8,775 2.93Ivory Coast. ..... .. 365 .14 36,500 3,650 4,524 32,850 40,719 615 .21Jamaica........... 446 .17 44,600 4,460 5,528 40,140 49.755 696 .23Japan............10,230 3.84 1,023,000 102,300 126,804 920,700 1,141,235 10,480 3.50Jordan............ 187 .07 18,700 1,870 2,318 16,830 20.861 437 .15Kenya. .......... 400 .15 40,000 4,000 4,958 36,000 44,623 650 .22Kerea, Republic aft.... 1,306 .49 130,600 13,060 16,188 117,540 145,695 1,556 .52Kawait ........... 694 .26 69,400 6,940 8,602 62,460 77,421 944 .32Lao People's DemocraticRepublic .......... 100 .04 10,000 1,000 1,239 9,000 11,156 350 .12

Lebanon........... 90 .03 9,000 900 1,116 8,100 10,040 340 .11Lesothos........... 43 .02 4,330 430 533 3,870 4,797 293 .10Liberia ........... 213 .08 21,300 2,130 2,640 19,170 23.762 463 .15Libya. ........... 200 .08 20,000 2,000 2,479 18,000 22,312 450 .15

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148 Bank Appendices

Notes to Financial Statements

June 30, 1978 and June 30, 1977

Summary of Significant Accounting and LoansRelated Policies All of the Bank's loans are made to, or guaranteed by, mem-

bers with the exception of loans to the International FinanceCapital Stock Corporation. The principal amounts of loans are repayable inFrom 1973 until March31, 1978,the Bank'scapital stock,which the currencies lent. Interest on loans is also payable in theis expressed in the Bank's Articles of Agreement in terms of currencies lent. The Bank has not suffered any losses on loan"United States dollars of the weight and fineness in effect on receivables and it has a policy of not participating in moratoriaJuly 1,1944" (1944 dollars), has been translated by the Bank or reschedulings. No losses on loan receivables are anticipatedfor purposes of its financial statements into current United and, accordingly, no reserve for loan losses has been estab-States dollars atthe rate of $1.20635 per 1944 dollar. Since the lished; however, should such losses arise they would beeffectiveness on April 1, 1978, of the Second Amendment to included in the determination of net income.the Articles of Agreement of the International Monetary Fund Administrative Expenses(the Fund), currencies no longer have par values in terms of A management fee is charged to the International Develop-gold. The Bank is examining the implications of this change ment Association and a service and support fee to the Inter-on the valuation of its capital stock. No decisions on this national Finance Corporation representing their respectivematter have been taken. However, for purposes of the financial shares of the administrative expenses of the Bank.statements for the fiscal year ended June 30, 1978, the Bankhas expressed the value of its capital stock on the basis of the Disposition of Income and General Reservespecial drawing right (SDR) in terms of United States dollars The Bank has not declared or paid any dividends to its mem-as computed by the Fund ($1.23953 per SDR) on June 30, bers. Commencing in 1950, a portion or all of the accumulated1978. (See Note B. This note also shows what the value of net income has been allocated to the General Reserve. (Seethe Bank's capital stock would be as expressed in terms of Note D.)$1.20635 equal one 1944 dollar.) For the time being payments Sinon account of subscriptions will continue to be accepted at the Sce 1964, It has been the Bank's policy to transfer to theequivalent of $120,635 per share of capital stock. International Development Association part of the year's

income which was not needed for allocation to reserves orTranslation of Currencies otherwise required to be retained in the Bank's business andThe financial statements are expressed in United States dollars accordingly could have been prudently distributed as dividends.solely for the purpose of summarizing the Bank's financial Such transfers are accounted for as a charge to accumulatedposition and the results of its operations for the convenience net mcome.of its members and other interested parties. Staff Retirement PlanThe Bank is an international organization which conducts its The Bank has a contributory retirement Plan for its staff,operations in the currencies of all of its members. The Bank's which also covers the staff of the International Finance Corpo-resources are derived from its capital, borrowings and accumu- ration. All contributions to the Plan and all other assets andlated earnings in the various currencies of its members and income of the Plan are held by the Bank separately from theSwitzerland and are held, invested or lent in those same cur- other assets of the Bank and the Corporation and can be usedrencies. The Bank matches its borrowing obligations in any one only for the benefit of the participants in the Plan and theircurrency with assets in the same currency, as prescribed by beneficiaries. The total cost of the Plan (see Note F) includesits Articles of Agreement, by holding, investing or lending the amortization of unfunded liabilities. On April 22, 1975, theproceeds of its borrowings in the same currencies in which they Bank made arrangements for payment of the unfunded liabilityare borrowed. The Bank maintains a neutral currency position at December 31, 1974 over a forty-year period and for paymentwith respect to its other resources by not converting one cur- of any future increase in this liabiiity over periods of from 15rency into another except for small amounts required to meet to 30 years.certain obligations and operational needs of the Bank. Note A-Translation of CurrenciesIn general, the Bank translates its assets and liabilities in A Statement issued in 1975 by the Financial Accountingcurrencies other than United States dollars at market rates of Standards Board in the United States requires that foreignexchange to the United States dollar at the end of each fiscal currency translation adjustments be included in the determi-quarter with the exception of buildings and deferred charges nation of net income for the period in which they occur;which are translated at exchange rates in effect when the however, in view of its character as an international organiza-buildings were acquired or the charges incurred. Income and tion and its related financial policies described previously, theexpenses other than depreciation and amortization charges are Bank does not deem this Statement to be applicable in thetranslated at an average of the market rates of exchange in circumstances. Had the Bank complied with this Statement,effect during each quarter. net income for the fiscal year ended June 30, 1978 would have

Under the Bank's present policies, adjustments arising from increased by $110,199,000 (decreased by $10,266,000 for thethe translation of currencies to the current United States dollar fiscal year ended June 30, 1977) and the General Reserveequivalent would not now or in the future result in realized would have decreased (increased-1977) by the same amount.gains or losses such as would result from the conversion of Note B-Capital Stock, Restrictedthe various currencies into United States dollars. Accordingly, Currencies and Maintenance of Valuetranslation adjustments, with the exception of those relating to Capital Stock: In the Articles of Agreement, the capital stockcapital subscriptions described in Note B, are charged or of the Bank is expressed in terms of 'United States dollars ofcredited to the General Reserve rather than income. (See the weight and fineness in effect on July 1, 1944" (1944Note A.) In those few instances where currencies are converted dollars).to another currency, the resulting gain or loss, if any, isincluded in the determination of net income. On April 30,1976, the Board of Governorsof the Fund approved

proposed amendments to the Fund's Articles of AgreementInvestments (the Second Amendment) which entered into force on April 1,Investment securities are recorded at cost or amortized cost. 1978. Under the Second Amendment, currencies no longerGains or losses on sales of investments, measured by the have par values, gold is abolished as a common denominatordifference between average cost and proceeds of sales, are of the monetary system and all calculations for the purposes ofrecorded as an element of income from investments. the Fund's Articles are made on the basis of the special

Fintantcial Statements 149

Appendix GInternational Bank for


drawing right (SDR). When the SDR was introduced into the in the currencies of the respective members. Of this latterFund's Articlesin 1969, itwasexpressed intermsofaspecified portion an amount of $137,909,000 ($134,217,000-1977) wasweight of gold equal to the gold content of the 1944 dollar. subsequently converted by members into United States dollars,Since July 1, 1974, the value of the SDR in terms of United subject to the right of the Bank or the members to reverseStates dollars has been based on the weighted relative values the transactions. The amounts paid in gold or United Statesof a number of major currencies (the basket), including the dollars or subsequently converted by members into UnitedUnited States dollar. The value of the SDR on July 1,1974, States dollars are freely usable by the Bank in any of itsexpressed in terms of United States dollars, was $1.20635, operations; however, the remaining amounts paid in the cur-which was the equivalent of one 1944 dollar. On March 31, rencies of the members, hereinafter called restricted curren-1978, the Fund made certain changes in the basket of currencies, are usable by the Bank in its lending operations onlycies effective July 1,1978, and established a method of further with the consent of the respective members. The equivalentadjustment, at five-yearly intervals, to reflect changes in the of $1,984,817,000 ($1,826,888,000-1977) has been used withrelative importance of currencies over time, while ensuring such consent.continuity and reasonable predictability for the valuation ofthe SDR. The amounts of the currencies in the revised basket Maintenance of Value: Article 11, Section 9 of the Articles ofeffective July 1, 1978, are such that the value of the revised Agreement provides for maintenance of value, as of the timebasket in terms of any currency was exactly the same, at of subscription, of such restricted currencies, requiring (1) theJune 30, 1978, under the revised valuation as under the then member to make additional payments to the Bank in the eventexisting valuation. that the par value of its currency is reduced or the foreignAs a result of the Second Amendment and the simultaneous exchange value of its currency has, in the opinion of the Bank,repeal of Section 2 of the Par Value Modification Act (31 U.S.C. depreciated to a significant extent in its territories, and (2) the

449, te povsio ofUniedStates law defining the par value Bank to reimburse the member in the event that the par valueof the United States dollar in terms of the SDR and gold, the of its currency is increased. Following the establishment ofpre-existing basis for translating the term "United States central rates by several members in lieu of existing par values,dollar of the weight and fineness in effect on July 1, 1944 i in March 1973, the Executive Directors resolved that, for allinto current United States dollars or into any other currency currencies pending the establishcentralmratets for their respectiveno longer exists. maintenance of value obligations be settled on the basis ofThe General Counsel of the Bank has rendered a legal opinion those central rates. These obligations of the members and ofconcluding in substance that upon the entry into force of the the Bank become effective immediately upon the happeningSecond Amendment references in the Bank's Articles of of those events with respect to holdings of restricted curren-Agreement to the 1944 dollar should be read as referringto the cies represented by currency balances and demand obligations.SDR, as determined from time to time by the Fund, and the With respect to restricted currencies out on loan, those obliga-mutual obligations of each member and the Bank, with respect tions become effective only as and when such currencies areto maintenance of value of certain currency holdings, will be recovered by the Bank, except that in several cases the Bankmeasured by the value of the currency in question in terms of and the members concerned have agreed to make provisionalthe SDR at any given time. settlements of such obligations, by means of one or more pay-The General Counsel has, however, also stated that in the ments over periods not exceeding five years. At June 30, 1978,exercise of their statutory power under Article IX of the $3,864,000 was payable by the Bank on such provisional settle-Bank's Articles, the Executive Directors could conclude that ments ($6,158,000-1977) and no amount was receivablethe 1944 dollar would be taken to mean 1.20635 current dollars, ($372,000-1977). These amounts are included in Amountswith the consequence that maintenance of value would be Required to Maintain Value of Currency Holdings under themeasured by that standard. headings Liabilities and Receivable on Account of SubscribedA member government has raised the question whether the Capital, respectively.substitution of a new unit of value, insofar as it would give Prior to April 1, 1978, where market rates of exchange wererise to any new obligations with respect to maintenance of not related to par values or central rates, as in the cases ofvalue and capital stock subscription payments, should be a majority of members, and where there were differencesmade only by amendment of the Articles. It also raised ques- between market rates of exchange and the rates at whichtions as to the desirability of retaining the principle of mainte- capital subscriptions of members had been paid or werenance of value, the form in which it is applied and the appro- payable such differences were shown as Translation Adjust-priateness of substituting a unit of value other than the SDR. ments on Capital Subscriptions under the heading OtherPending action on these questions, the financial statements Assets. These amounts represented notional receivables andhave been drawn up in accordance with the General Counsel's payables which would become maintenance of value obliga-opinion, that is, the value of the capital stock is expressed in tions if and when the provisions of Article I I, Section 9 of theterms of the SDR. Articles of Agreement or the resolution of the Executive

Directors described above could be applied. According to theThe Bank's capital comprises 340,000 authorized shares of the legal opinion of the Bank's General Counsel referred to inpar value of SDR100,000 (340,000 shares of the par value of this Note B under Capital Stock, maintenance of value pursu-1944 dollars 100,000-1977) each, of which 266,597 shares have ant to Article I I, Section 9 of the Articles of Agreement wouldbeen subscribed (255,890-1977). Ten percent of the capital be determined on the basis of the SDR, and is treated in thesubscriptions have been called and paid in; the remaining financial statements on this basis. Since the Bank is stillninetypercentissubjecttocallbythe Bankonlywhen required considering the implications of the Second Amendment andto meet the obligations of the Bank created by borrowing or in view of the questions referred to above, the timing of anyguaranteeing loans. As to $26,436,398,000 ($24,695,403,000- establishment and settlement of these notional maintenance1977), the restriction on calls is imposed by the Articles of of value items $372,600,000 receivable and $115,811,000Agreement and as to $3,304,550,000 ($3,086,925,000-1977) payable at June 30, 1978 is uncertain. Accordingly, they areby resolutions of the Board of Governors. included in Other Assets, and Liabilities as notional mainte-Restricted Currencies: The portion of capital subscriptions nance of value obligations. At June 30, 1977, the comparablepaid in to the Bank is divided into two parts: (1) $330,455,000 amounts wereshown as netTranslation Adjustments on Capital($308,693,000-1977) initially paid in gold or United States Subscriptions under the heading Other Assets; these amountsdollars, and (2) $2,974,095,000 ($2,778,232,000-1977) paid have been reclassified for comparative purposes as notional

(continued)

150 Bank Appendices

Notes to Financial Statements 'concluded) Appendix GInternational Bank for

Reconstruction and DevelopmentJune 30, 1978 and June 30, 1977

receivables of $326,644,000 and notional payables of the current fiscal year (charged with $10,266,000-1977) rep-$55,200,000. Maintenance of value obligations in respect of resentingcreditsof$123,565,000of nettranslationadjustmentsrestricted currencies out on loan, which become effective only as a result of currency depreciations and appreciations, andas and when such currencies are recovered by the Bank, have charges of $13,366,000 representing a compensating effect ofbeen transferred from Loans to Maintenance of Value of the capital valuation change to the SDR on the one percentCapital Subscriptions Outstanding on Loans, Not Yet Due portion of the Bank's paid-in capital and the nine percentunder the heading Other Assets. The Balance Sheet, the State- portion released by certain member countries for lending inment of Changes in Financial Position and the Summary United States dollars. (See Statement of Changes in GeneralStatement of Loans have been reclassified accordingly. Reserve-Appendix B.) Since the value of the SDR in terms

Effect of Valuation in Terms of the SD R: Expressing the value of current dollars may vary from day to day, that portion ofof the Bank's capital stock in terms of the SDR rather than the Bank's capital paid in or released in dollars will be subjectin terms of $1.20635 does not have a material effect on the to further adjustment at the end of each accounting period.financial position or results of the operations of the Bank. If The Special Reserve consists of loan commissions set asidethe value of the capital stock were expressed in terms of pursuant to Article IV, Section 6, of the Articles of Agreement$1.20635, the subscribed capital would have been $32,160,929,- which are to be held in liquid assets and to be used only for000 instead of $33,045,498,000, the uncalled portion of sub- the purpose of meeting liabilities of the Bank on its borrowingsscriptions $28,944,836,000 instead of $29,740,948,000, the paid- and guarantees. The Special Reserve assets comprise obliga-in capital $3,216,093,000 instead of $3,304,550,000 and the tions of the United States Government and its instrumentalitiesmaintenance of value obligations would have been $181,104,000 and are included under the heading Investments. As a resultinstead of $256,179,000. of a decision made in 1964, the allocation of such commissions

to the Special Reserve was discontinued in respect of subse-Note C-Investments quent loans and no further additions are being made to it.The market value of investment securities was $8,568,937,000($7,792,923,000-1977) compared with a cost or amortized cost Interest and other charges of $24,000 payable to the Bank onof $8,705,757,000 ($7,794,442,000-1977), and a face value of loansareoverduebymorethan60days. Theprincipal disbursed$8,766,014,000 ($7,851,331,000-1977), including investments and outstanding on these loans amountsto $33,787,000. It is notnot traded in the market which were valued at their cost anticipatedthatthesedelayswill resultin any losstothe Bank.of $369,701,000 ($519,399,000-1977). Investments includesecurities purchased under agreements to resell amounting Note E-Contributions to the Internationalto $52,442,000 ($100,974,000-1977). Obligations of the United Development AssociationStates Government and its instrumentalities having a cost or The Bank has authorized transfers by way of grants to theamortized cost of $292,538,000 ($292,538,000-1977) and a International Development Association totaling $1,225,000,000market value of $287,473,000 ($292,213,000-1977), set aside from net income for the fiscal years ended June 30, 1964in respect of the Special Reserve, as described in Note D, are through June 30, 1977. Of this amount $734,503,000 wasincluded under this heading, payable at June 30, 1978. ($1,125,000,000 had been authorized

from net income through the fiscal year ended June 30, 1976The annualized rate of return on the average investments held and $648,628,000 was payable at June 30, 1977.)during the period, based on the portfolio held at the end ofeach month and including gains and losses, was 6.99% Note F-Staff Retirement Plan(7.45%-1977). The cost of the Plan to the Bank for the fiscal year ended

June 30, 1978 was $24,959,000 ($21,897,000 for the fiscal yearNote D-Reserves and Net Income ended June 30, 1977). The actuarial valuation of the Plan isThe President of the Bank has proposed to the Executive made annually. At December 31, 1977, the valuation disclosedDirectors that they approve the allocation of $138,111,000 to an unfunded liability of $92,049,000 ($68,578,000 at Decemberthe General Reserve out of the $238,111,000 net income earned 31, 1976), a portion of which relates to the Internationalin the fiscal year ended June 30, 1978 and that they recommend Finance Corporation.to the Board of Governors that the balance of $100,000,000be transferred by way of grant to the International Develop- Note G-Income and Expensesment Association. Income from investments includes net losses of $5,181,000

In August 1977, the Bank allocated $109,450,000 to the Gen- (net gains of $80,981,000-1977) resulting from sales of invest-eral Reserve out of the $209,450,000 net income earned in the ments. Other income includes net gains of $7,941,000fiscal year ended June 30, 1977 and in September 1977 ($8,335,000-1977) resulting from repurchases of obligationsauthorized the transfer of the balance of $100,000,000 by wa of the Bank prior to maturity pursuant to the terms of theofgrant thor theInteranSatioonal DewvelopmentaAssociation. respective borrowing agreements. Administrative expenses are

of gant o th IntrnatonalDeveopmet Asociaion,net of the management fee of $91,911,000 ($72,296,000-1977)In accordance with the policies discussed in the Summary of charged to the International Development Association and ofSignificant Accounting and Related Policies and Note A, the the service and support fee of $2,158,000 ($1,657,000-1977)General Reserve has been credited with $110,199,000 during charged to the International Finance Corporation.


Report of Financial StatementsIndependent Accountants Covered by the

Foregoing Report1801 K Street, N.W.

WASHINGTON, D.C. 20006JULY 31, 1978

TOINTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOPMENTWASHINGTON, D.C.

We have examined the financial statements (Appendices A Balance Sheet ............ .......... .... Appendix Athrough G) of International Bank for Reconstruction and Devel-opment as of June 30, 1978 and 1977, and for the years then Statement of Income.Appendix Bended. Our examinations of these statements were made in Statement of Accumulated Net Income.. Appendix Baccordance with generally accepted auditing standards andaccordingly included such tests of the accounting records and Statement of Changes in General Reserve ......... Appendix Bsuch other auditing procedures as we considered necessary in Statement of Changes in Financial Position ..... Appendix Cthe circumstances.

Summary Statement of Loans ........... Appendix DConsistent with past practice, the Bank records currency trans-lation adjustments, except those pertaining to the nine percent Summary Statement of Borrowings .......... Appendix Eportion of its capital stock, as charges against or credits to the Statement of Subscriptions to Capital Stock andGeneral Reserve. Statement 8 of the Financial Accounting Voting Power ........... ..... ...... Appendix FStandards Board requires that these adjustments, which areset forth in the Statement of Changes in General Reserve, be Notes to Financial Statements ....... Appendix Gincluded in the determination of net income; however, in viewof the Bank's character as an international organization andits related financial policies, which are described in the Sum-mary of Significant Accounting and Related Policies (Transla-tion of Currencies) and in Note A, the Bank does not deem theapplication of this accounting principle to be appropriate in thecircumstances, and we concur with this conclusion.

In our opinion,the financial statements examined by us presentfairly, in terms of United States currency, the financial positionof International Bank for Reconstruction and Development atJune 30, 1978 and 1977, and the results of its operations andthe changes in its financial position for the years then ended,in conformity with generally accepted accounting principlesconsistently applied.

PRICE WATERHOUSE & CO.

152 Bank Appendices

Statement of Loans Approvedduring Fiscal Year 1978July 1, 1977-June 30, 1978(US dollars)

Guarantor Date of Interest PrincipalPurpose and borrower approval Maturities rate amount

AlgeriaWater Supply and Sewerage: Algiers Sewerage ............ April 4,1978 1982/1995 7.45% $ 82,000,000Education: Fourth Education-Training of Engineers andHigh-level Technicians ................. ................ June 15, 1978 1982/1995 7.50% 90,000,000

ArgentinaAgriculture and Rural Development: Grain Storage .......... February 21, 1978 1981/1993 7.45% 105,000,000Agriculture and Rural Development: Agricultural Credit ...... May 9,1978 1982/1991 7.50% 60,000,000

BoliviaUrban Development: La Paz ........ .................... October 4, 1977 1983/1997 8.00% 17,000,000Agriculture and Rural Development: Ulla Ulla RuralDevelopment. ............................ January 12, 1978 1983/1998 7.907% 9,000,000

Transportation: Highway Maintenance ..................... June 1, 1978 1983/1998 7.50% . 25,000,000BotswanaAgriculture and Rural Development: Second LivestockDevelopment ............... ...................... December 6,1977 1983/1997 7.90% 6,500,000

Urban Development: Second Urban Project ................. May 30, 1978 1983/1998 7.50% 8,000,000BrazilAgriculture and Riral Development: Ceara RuralDevelopment ....... ..... . September 13, 1977 1981/1992 8.00% 17,000,000

Agriculture and Rural Development: Paraiba RuralDevelopment ........... ........................ March 28, 1978 1981/1993 7.45% 24,000,000

Transportation: Sixth Highway ..................... ...... April 27, 1978 1981/1993 7.50% 114,000,000Urban Development: Urban Transport-Empresa Brasileirados Transportes Urbanos (EBTU) ......... ....... May 9,1978 1981/1993 7.50% 88,000,000

Agriculture and Rural Development: Agricultural Extension .. May 16, 1978 1982/1993 7.50% 100,000,000Agriculture and Rural Development: Bahia Rural Development June 6, 1978 1982/1993 7.50% 37,000,000

Brazil (Guarantor)Water Supply and Sewerage: Sewage Collection andTreatment, Greater Sao Paulo-Companhia de SaneamentoBasico do Estado de Sao Paulo (SABESP) and BancoNacional da Habitacao (BNH) ........... _ .............. February 28, 1978 1981/1993 7.45% 110,000,000

Power: South-Southeast Power Distribution-CentraisEletricas Brasileiras S.A. (ELETROBAS) ......... _ ....... March 28, 1978 1981/1993 7.45% 130,000,000

Industry: Petrochemicals-Companhia Petroquimica do Sul(COPESUL) ........... .......... ................ May 9,1978 1982/1993 7.50% 85,000,000

CameroonTransportation: Feeder Roads ........................... November 15, 1977 1983/1997 7.90% 4,600,000Agriculture and Rural Development: Second CameroonDevelopment Corporation (CAMDEV) ............ ......... December 27, 1977 1983/1998 7.90% 15,000,000

Agriculture and Rural Development: Second Semry Rice-Societe d'Expansion et de Modernisation de la Riziculturede Yagoua (SEMRY) .................. ............ January 19, 1978 1983/1998 7.45% 14,500,000

Transportation: Third Highway ............. January 31, 1978 1983/1998 7.45% 16,500,000ColombiaPopulation and Nutrition: Integrated Nutrition Improvement. September 13, 1977 1982/1994 8.00% 25,000,000Urban Development: Comprehensive Urban Assistance ...... April 27, 1978 1982/1995 7.50% 24,800,000Power: 500-kv. Interconnection . .................. May 30, 1978 1982/1995 7.50% 50,000,000

Colombia (Guarantor)Water Supply and Sewerage: Second Cali Water Supplyand Sewerage-Empresa Municipales de Cali (EMCALI) .... February 21, 1978 1982/1994 7.45% 13,800,000

Power: San Carlos I Hydro Power-Interconexi6nEl6ctrica, S.A. (ISA) ................................... May 30, 1978 1982/1995 7.50% 126,000,000

Industry: Cartagena Industrial Export Processing Zone ....... June 13, 1978 1983/1995 7.50% 15,000,000Industrial Development and Finance: Seventh DevelopmentFinance Companies-Banco de la Republica .............. June 15, 1978 1983/1995 7.50% 100,000,000

Costa RicaUrban Development: San Jose Urban Transport ............ October 18, 1977 1982/1994 7.90% 16,500,000

Costa Rica (Guarantor)Telecommunications: Fifth Telecommunications-InstitutoCostarricense de Electricidad (ICE) ....................... March 14, 1978 1982/1995 7.45% 10,600,000

Industrial Development and Finance: Industrial Credit-Central Bank of Costa Rica (CBCR) . ........ June 15, 1978 1983/1995 7.50% 15,000,000

CyprusAgriculture and Rural Development: Pitsilia Integrated Rural

Development .......... ............................... August 9,1977 1981/1992 8.00% 10,000,000

Statemiient of Loanis Approved 153

Appendix HInternational Bank for


Guarantor Date of Interest PrincipalPurpose aad borrower approval Maturities rate amount

Cyprus (Guarantor)Transportation: Second Ports, Limassol and Larnaca PortsExpansion-Cyprus Ports Authority ....... ........ March 28, 1978 1981/1993 7.45% $ 8,500,000

EcuadorTechnical Assistance: Second Technical Assistance-Preinvestment Engineering Studies .... ............ .... August 2, 1977 1981/1987 8.00% 11,000,000

Egypt, Arab Republic of (Guarantor)Transportation: Suez Canal Expansion-The Suez CanalAuthority (SCM). ....... I......... August 9, 1977 1983/1997 8.00% 100,000,000

Industrial Development and Finance: Third DevelopmentIndustrial Bank (DIB) .............. ........... ..... March 21, 1978 1981/1995 7.45% 40,000,000

El SalvadorEducation: Industrial and Agricultural Training ........ .... May 18, 1978 1983/1998 7.50% 9,000,000

El Salvador (Guarantor)Telecommunications: Third Telecommunications-Administracion Nacional de Telecomunicaciones (ANTEL) ... May 18, 1978 1983/1998 7.50% 23,000,000

Fiji (Guarantor)Power: Monasavu-Wailoa Hydroelectric-Fili ElectricityAuthority (FEA) .. ..... ......................... June 15, 1978 1982/1993 7.50% 15,000,000

GreeceEducation: Fourth Education-Technical Education andTeacher Training ... .March 28, 1978 1981/1993 7.45% 60,000,000

Agriculture and Rural Development: Vegetable Productionand Marketing .... June 6,1978 1982/1993 7.50% 30,000,000

Guatemala (Guarantor)Power: Chixoy Power-Instituto Nacional deElectrificaci6n (INDE) .......................... ...... June 29, 1978 1983/1995 7.50% 72,000,000

HondurasAgriculture and Rural Development: Guayape RegionalDevelopment ............................. ....... May 23, 1978 1983/1998 7.50% 10,500,000

IndiaIndustrial Development and Finance: Industrial DevelopmentBank of India (IDBI) Joint/Public Sector ............ ..... January 19, 1978 1981/1995 7.45% 25,000,000

Telecommunications: Seventh Telecommunications ........ June 8,1978 1982/1998 7.50% 120,000,000India (Guarantor)Industrial Development and Finance: Twelfth IndustrialCredit and Investment-The Industrial Credit andInvestment Corporation of India (ICICI) ........ ...... July 5,1977 1980/1994 8.20% 80,000,000

Power: Third Trombay Thermal Power-Tata ElectricCompanies .. ..... ....... .. ..... ...... . ...... April 18, 1978 1984/1998 7.50% 105,000,000

IndonesiaEducation: Nonformal Education .. .................. September 6,1977 1983/1997 8.00% 15,000,000Agriculture and Rural Development: First Nucleus Estatesand Smaliholders . ................................. November 15, 1977 1983/1997 7.90% 65,000,000

Power: Seventh Power ........ ........... January 31, 1978 1993/1998 7.45% 109,000,000Industry: Bukit Asam Coal Mining and TransportationEngineering . .... .. ........ . ... May 9,1978 1981/1988 7.50% 10,000,000

Agriculture and Rural Development: Tenth Irrigation ... .... May 25, 1978 1983/1998 7.50% 140,000,000Agriculture and Rural Development: Eleventh Irrigation ...... May 25, 1978 1983/1998 7.50% 31,000,000Agriculture and Rural Development: Second NucleusEstates and Smallholders ........ ...... ..... ..... . June 29, 1978 1984/1998 7.50% 65,000,000

Ivory CoastWater Supply and Sewerage: Secondary Centers WaterSupply . ... ......................... .... August 30, 1977 1981/1994 8.00% 16,000,000

Transportation: Feeder Roads and Highway Maintenance .... December 13, 1977 1982/1994 7.90% 29,000,000Agriculture and Rural Development: Second Grand-BerebyRubber ... ................................. .... May 23, 1978 1982/1995 7.50% 20,000,000

Water Supply and Sewerage: Second Abidjan Sewerageand Drainage ... .................................... May 25, 1978 1982/1995 7.50% 33,000,000

Ivory Coast and Upper Volta (Guarantors)Transportation: Regional Railway-Regie des Chemins deFer Abidjan-Niger (RAN) ..... .......... ..... ..... October 18, 1977 1982/1994 8.00% 23,000,000

JamaicaNonproject: Program Loan-Maintenance Imports ........ . December 13, 1977 1982/1995 7.90% 30,000,000

(continued)

154 Bank Appendices

Statement of Loans Approvedduring Fiscal Year 1978 (continued)

July 1, 1977-June 30, 1978(US dollars)

Guarantor Date of Interest PrincipalPurpose and borrow.e approval Maturities rate amount

Jamaica (Guarantor)Power: Second Power-Jamaica Public Service Company,Limited (JPSC) ......................................... February 7,1978 1982/1995 7.45% $ 20,000,000

Agriculture and Rural Development: Sugar Rehabilitation-National Sugar Company, Limited .. ... ................. February 7, 1978 1982/1995 7.45% 18,000,000

KenyaUrban Development: Second Urban Project-Improvementof Squatter Settlements and Low-income Housing .......... April 18, 1978 1983/1998 7.50% 25,000,000

Kenya (Guarantor)Water Supply and Sewerage: Second Nairobi Water Supply-City Council of Nairobi (NCC) ........ . ................ February 14, 1978 1983/1998 7.45% 30,000,000

Korea, Republic ofEducation: Vocational Training .............. ... ... July 5, 1977 1981/1994 8.20% 23,000,000Agriculture and Rural Development: Second RuralInfrastructure ...... ............................. March 7,1978 1982/1995 7.45% 95,000,000

Transportation: Sixth Railway . ............ .......... March 30, 1978 1982/1995 7.45% 120,000,000

Korea, Republic of (Guarantor)Agriculture and Rural Development: Ogseo Area Development,Stage I-The Agricultural Development Corporation (ADC). December 22, 1977 1982/1994 7.90% 36,000,000

Industrial Development and Finance: Second MediumIndustry Bank (MIB) ................................ December 27, 1977 1981/1994 7.90% 55,000,000

Industrial Development and Finance: Third KoreaDeveiopment Bank (KDB) ......... .................... May 23, 1978 1981/1995 7.50% 110,000,000

LebanonNonproject: Reconstruction ................ ............ July 5,1977 1981/1994 8.20% 50,000,000

LiberiaAgriculture and Rural Development: Rubber Development .. March 30, 1978 1983/1998 7.45% 7,000,000Transportation: Fourth Highway ........................... May 18, 1978 1983/1998 7.50% 13,800,000

Liberia (Guarantor)Power: Fourth Power-Liberia Electricity Corporaticn (LEC). . June 15, 1978 1983/1998 7.50% 10,000,000

MalaysiaAgriculture and Rural Development: National AgriculturalExtension. ........... ..................... November 15, 1977 1982/1995 7.90% 19,000,000

Agriculture and Rural Development: Northwest SelangorIntegrated Agricultural Development ...................... February 21, 1978 1982/1995 7.45% 26,000,000

Agriculture and Rural Development: Sixth Federal LandDevelopment Authority (FELDA) Land Settlement .......... June 6, 1978 1983/1995 7.50% 28,000,000

Malaysia (Guarantor)Transportation: Second Sabah Ports-Sabah PortsAuthority (SPA) ...................................... May 25, 1978 1983/1995 7.50% 13,000,000

MauritiusEducation: Second Education-Secondary Schools andTechnical Assistance ............ ............ March 30, 1978 1982/1995 7.45% 15,200,000

Mauritius (Guarantor)Industrial Development and Finance: Fourth DevelopmentBank of Mauritius(DBM) ............... ...... July 12, 1977 1979/1994 8.20% 7,500,000

Power: Power Transmission-Central Electricity Board (CEB) April 4,1978 1982/1995 7.45% 15,000,000

Mexico (Guarantor)Tourism: Nacional Financiera, S.A. (NAFINSA) ............. February 28, 1978 1982/1995 7.45% 50,000,000Industrial Development and Finance: Small- and Medium-scaleIndustrial Development-Nacional Financiera, S.A.(NAFINSA) ..... ........ April 27,1978 1982/1993 7.50% 47,000,000

Agriculture and Rural Development: Tropical AgriculturalDevelopment-Nacional Financiera, S.A. (NAFINSA) ....... April 27, 1978 1982/1995 7.50% 56,000,000

Urban Development: Lazaro Cardenas Conurbation-BancoNacional de Obras y Servicios PIblicos, S.A. (BANOBRAS). April 27, 1978 1982/1995 7.50% 16,500,000

Industrial Development and Finance: Third IndustrialEquipment Fund (FONEI)-Nacional Financiera, S.A.(NAFINSA) ................................. May 2,1978 1983/1995 7.50% 100,000,000

Agriculture and Rural Development: Sixth AgriculturalCredit-Nacional Financiera, S.A. (NAFINSA) ............. May 16, 1978 1982/1995 7.50% 200,000,000

Statement of Loans Approved 155

Appendix HInternational Bank for


Guara ntor Date of Interest PrincipalPurpose and borrower approval Maturitles rate amount

MoroccoWater Supply and Sewerage: Sewerage Engineering,Casablanca ..... ......... . .......................... August 9,1977 1981/1987 8.00% $ 1,500,000

Urban Development: Rabat .............. . .............. February 28, 1978 1983/1998 7.45% 18,000,000Agriculture and Rural Development: Fes-Karia-TissaAgriculture ..... ............... ... ..... ........ June 27, 1978 1985/2002 7.50% 65,000,000

NicaraguaWater Supply and Sewerage: Rural Sanitation . ..... ..... November 29, 1977 1982/1994 7.90, 3,000,000

Nicaragua (Guarantor)Water Supply and Sewerage: Third Managua WaterSupply-Empresa Aguadora de Managua (EAM) ............ November 29, 1977 1982/1995 7.90F% 10,100,000

NigeriaAgriculture and Rural Development: Nucleus Estate/Smaliholder Oil Palm Development ..... June 6,1978 1984/1998 7.50%- 30,000,000

Nigeria (Guarantor)Industrial Development and Finance: Third NigerianIndustrial Development Bank (NIDB) .. .. . June 15, 1978 1981/1995 7.50% 60,000,000

PanamaTransportation: Highway Maintenance .. .... May 11, 1978 1981/1993 7.50% 12,000,000Papua New GuineaTransportation: Second Ports . ...... .... April 18, 1978 1984/1998 7.50% 3,500,000ParaguayWater Supply and Sewerage: Rural Water Supply ...... .... December 13, 1977 1982/1995 7.90% 6,000,000Transportation: Fifth Highway .. ............... March 7, 1978 1982/1995 7.45%, 33,000,000

PhilippinesAgriculture and Rural Development: Smaliholder TreeFarming and Forestry .......... .... ......... December 22, 1977 1983/1997 7.90% 8,000,000

Agriculture and Rural Development: Second NationalIrrigation Systems Improvement . ........ ...... ...... February 28, 1978 1983/1998 7.45% 65,000,000

Education: Second Educational Radio Technical Assistance ... March 21, 1978 1983/1988 7.45% 2,000,000Agriculture and Rural Development: Second Magat RiverMultipurpose ...................... .... May 11, 1978 1984/1998 7.50%o 150,000,000

Industrial Development and Finance: Third IndustrialInvestment Credit .... May 18, 1978 1981/1998 7.50% 80,000,000

Philippines (Guarantor)Industrial Development and Finance: Fifth PrivateDevelopment Corporation of the Philippines (PDCP)-The Philippine National Bank (PNB). . . January 31, 1978 1983/1996 7.45, 30,000,000

Power: Rural Electrification-National ElectrificationAdministration (NEA) ....... .... ........ e. ........ . April 4,1978 1983/1998 7.45% 60,000,000Industrial Development and Finance: Philippine InvestmentsSystems Organization (PISO)-The Philippine NationalBank (PNB) .. ................ ..... .............. April 27, 1978 1981/1995 7.50%, 15,000,000

PortugalWater Supply and Sewerage: Lisbon Region Water Supply. . March 28, 1978 1981/1993 7.45% 40,000,000Education: Manpower Training .. . ........... April 27, 1978 1981/1993 7.50%o 21,000,000

Portugal (Guarantor)Agriculture and Rural Development: Agricultural andFisheries Credit-Instituto Financiero de Apoio aoDesenvolvimento da Agricultura (IFADAP) ........ Ju..... .. June 27, 1978 1982/1993 7.50% 70,000,000

Romania (Guarantor)Agriculture and Rural Development: Pig Production andProcessing-Bank for Agriculture and Food Industry (BAFI) July 12, 1977 1981/1992 8.20%, 71,000,000

Agriculture and Rural Development: Viisoara Irrigation-Bank for Agriculture and Food Industry (BAFI) . . ... .. January 12, 1978 1981/1993 7.90%, 40,500,000

Industry: Tire Project-Investment Bank of Romania ...... March 23, 1978 1981/1993 7.45,%, 85,000,000Industry: Post-earthquake Construction-Investment Bankof Romania ......................................... May 30, 1978 1982/1993 7.50% 60,000,000

Senegal (Guarantor)Transportation: Third Railway-Regie des Chemins deFer du Senegal ...................................... February 7,1978 1983/1998 7.45% 11,000,000

SwazilandEducation: Second Education-Secondary Schools andTechnical Assistance ..................... ............ July 5,1977 1982/1997 8.20% 4,000,000

(continued)

156 Bank Appendices

Statement of Loans Approved Appendix HInternational Bank forduring Fiscal Year 1978(continued) Reconstruction and Development

July 1, 1977-June 30, 1978(US dollars)

Guara ntor Date of Interest PrincipalPurpose and bhrrower approval Maturities rate amount

Syrian Arab RepublicEducation: Teacher and Vocational Training .......... ..... July 12, 1977 1981/1997 8.20% $ 20,000,000Transportation: Third Highway .............. . ............ April 4,1978 1982/1995 7.45% 58,000,000

Syrian Arab Republic (Guarantor)Power: Regional Electrification-Etablissement Publicd'Electricite (EPE) . ................. ...... March 14, 1978 1982/1995 7.45% 40,000,000

TanzaniaIndustry: Morogoro Textile .... ....... .... . ... .. June 29, 1978 1983/1998 7.50% 25,000,000

Tanzania (Guarantor)Industrial Development and Finance: Third IndustrialFinance-Tanzania Investment Bank (TI B) ...... .... ..... December 6, 1977 1982/1993 7.90% 15,000,000

ThailandTransportation: Sixth Highway-Provincial Roads ........... February 14, 1978 1983/1998 7.45% 110,000,000Urban Development: Bangkok Sites and Services and SlumImprovement .... . ................. ................ April 27, 1978 1983/1998 7.50% 8,600,000

Thailand (Guarantor)Power: Pattani Hydroelectric-Electricity GeneratingAuthority of Thailand (EGAT) ...... ........ . .... August 30, 1977 1982/1997 8.00% 50,000 000

Industry: The Minburi Industrial Estate-The IndustrialEstate Authority of Thailand (IEAT) ................. .... October 18, 1977 1983/1998 7.90% 4,750,000

Power: Accelerated Rural Electrification-ProvincialElectricity Authority (PEA) .................... ......... February 28, 1978 1983/1998 7.45% 25,000,000

TunisiaIndustrial Development and Finance: Industrial Finance-Pilot Small-scale Enterprise Scheme ....... .......... December 22, 1977 1982/1991 7.90% 5,000,000(1:

Transportation: Rural Roads .............................. June 27, 1978 1982/1995 7.50% 32,000,000Tunisia (Guarantor)Industrial Development and Finance: Industrial Finance-Banque de Developpement Economique de Tunisie (BDET). . December 22, 1977 1982/1990 7.90% 30,000,000

TurkeyAgriculture and Rural Development: Northern Forestry ...... June 1,1978 1982/1995 7.50% 86,000,000Agriculture and Rural Development: Fourth LivestockDevelopment. ............. ... ..... June 1,1978 1982/1995 7.50% 24,000,000

Industry: Erdemir Stage 11 Steel ....... ..... ... .... June 29, 1978 1982/1995 7.50% 95,000,000UruguayEducation: Vocational Training and TechnologicalDevelopment ................................... . June 13, 1978 1981/1993 7.50% 9,700,000

Yugoslavia (Guarantor)Agriculture and Rural Development: Second AgriculturalCredit-Vojvodjanska Banka (VB) ..... . ................. July 5,1977 1980/1992 8.20% 75,000,000

Transportation: Fifth Railway-Community of YugoslavRailways (CYR) ........ ....... ................... March 23, 1978 1981/1993 7.45% 100,000,000

Transportation: Ninth Highway-Road Organizations ofSlovenia, Croatia, and Serbia .... . ...................... March 23, 1978 1981/1993 7.45% 80,000,000

Power: Middle Neretva Hydro-Elektroprivreda Bosne iHercegovine-Sarajevo (EBH) ........ ....... ............ May 2,1978 1982/1993 7.50% 73,000,000

ZambiaTransportation: Third Highway ............. . ............. May 11, 1978 1983/1998 7.50% 11,250,000

TOTAL of loans to or guaranteed by members .$6,097,700,000

UThe $5,000,000 loan to the Government of Tunisia is part of the $30,000,000 loan to BDET, for which the Government of Tunisia isguarantor. The two loans are counted as one operation.

IDA Appendices

Financial StatementsPage

Appendix A Statement of Condition ........... ................ 158

Appendix B Statement of income ..................... ....... 160Statement of Transfers from InternationalBank for Reconstruction and Development ...... 160

Appendix C Statement of Changes in Resources Availablefor Commitment ................................. 161

Appendix D Summary Statement of Development Credits ........ 162

Appendix E Statement of Voting Power, and Subscriptionsand Supplementary Resources ..... ............... 164

Appendix F Notes to Financial Statements .......... .......... 167

REPORT OF INDEPENDENT ACCOUNTANTS . .... ........ 170

Appendix G Statement of Development Credits Approvedduring Fiscal Year 1978 ............................. 171

158 IDA Appendices

Statement of ConditionJune 30, 1978 and June 30, 1977Expressed in United States dollars (in thousands)-see Notes to Financial Staternents, Appendix F

Assets 1978 1977

DUE FROM BANKSUnrestricted currencies (including interest-bearing demanddeposits $421-1978, $8,960-1977) ........... ................ $ 516,662 $ 446,634

Currencies subject to restrictions-Note A . ............ 59,120 60,795$ 575,782 507,429

INVESTMENTS-Note BObligations of governments and their instrumentalities ............. $ 83,379 66,749Time deposits and other obligations of banks . ........... 122,007 98,605

205,386 165,354RECEIVABLE ON ACCOUNT OF SUBSCRIPTIONS AND

SUPPLEMENTARY RESOURCES-Note ANon-negotiable, non-interest-bearing demand obligationsUnrestricted ...................... ...................... $ 3,483,923 2,059,814Subject to restrictions ...................... 156,446 160,044

Amounts due on additional subscriptions and supplementaryresources ...................... ..... 496,566 809

Amounts required to maintain value of currency holdings-Note C. . 19,087 19,8554,156,022 2,240,522

RECEIVABLES-OTHERInternational Bank for Reconstruction and Development ........... $ 734,503 648,628From purchaser on account of effective development creditsagreed to be sold ........................ 12,660 3,300

Accrued service charges on development credits . ..... 16,348 14,973Accrued interest on investments . ........... 1,101 1,641

764,612 668,542DEVELOPMENT CREDITS (See Appendix D) ...... $13,958,578 11,707,227Less-Development credits approved but not yet effective . ....... 1,609,350 757,200

Effective development credits (including undisbursed balance$3,880,768-1978, $3,514,984-1977). 12,349,228 10,950,027

OTHER ASSETSNotional amounts required to maintain value of currency holdings-Notes A and C ........ .................................... $ 87,103 101,276

Miscellaneous ............... 10,349 5,76597,452 107,041

$18,148,482 $14,638,915


Appendix AInternational Development

Association

Liabilities, Subscriptions, Supplementary Resources, 1978 1977Transfers and Accumulated Net Income

LIABILITIESAmounts required to maintain value of currency holdings-Note C. $ 4,101 $ 1,496Accounts payable and other liabilities ............................ 1,614 103Notional amounts required to maintain value of currency holdings-Notes A and C ....... ................................. 4,835 4,766

Undisbursed balance of effective development credits(See Appendix D)Held by Association ........................ $....... ........ 3,880,768 3,514,984Agreed to be sold ....................................... 20,021 7,709

3,900,789 3,522,693Borrowings from Swiss Confederation-Note D ............0...... 98,140 73,957

SUBSCRIPTIONS AND SUPPLEMENTARY RESOURCES(See Appendix E and Appendix F-Note E) ....................... 12,914,038 9,858,869

TRANSFERS FROM INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOPMENT(See Appendix B and Appendix F-Note F) ................ ..... 1,192,600 1,101,725

ACCUMULATED NET INCOMEBeginning of fiscal year ........................ .............. $ 75,306 83,414Fiscal year (See Appendix B) ...... ...... ..... (42,941) (8,108)

32,365 75,306$18,148,482 $14,638,915

160 IDA Appendices

Statement of Income Appendix BInternational Development

For the fiscal years ended June 30, 1978 and June 30, 1977 AssociationExpressed in United States dollars (in thousands'-see Notes to Financial Statements, Appendix F

July I-June 30

1977/78 1976/77

Income

Income from development credits .......... .............................................. $ 59,640 $ 51,032Income from investments ............................................................ .... 12,753 14,126Exchange adjustm ents ................................................................. (144) (166)

Total Income .......................................................... .. $ 72,249 $ 64,992

ExpensesManagement fee to International Bank for Reconstruction and Development .................... $ 91,911 $ 72,296

O perating Loss ................. ..................... ....... ...................... $ (19,662) $ (7,304)Translation adjustments-Note G ..... (......... ................ (........................ (23,279) (804)

Net Loss ..... ............................................................ $ (42,941) $ (8,108)

Statement of Transfers from International Bank forReconstruction and DevelopmentFor the fiscal years ended June 30, 1978 and June 30, 1977

Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix F

July 1-June 30

1977/78 1976177

Balance at beginning of fiscal year:Available for general purposes of the Association ........... _ ............................... $1,099,150 $1,008,475Available for grants for agricultural research and for control of onchocerciasis .......... 2,575 3,165

$1,101,725 $1,011,640

Transfer from International Bank for Reconstruction and Development during fiscal year:For general purposes of the Association ..................................................... 89,800 90,500For grants for agricultural research and for control of onchocerciasis ........................... 10,200 9,500

Disbursed to approved grant recipients ........................................... ....... (9,125) (9,915)

Balance at end of fiscal year: Note FAvailable for general purposes of the Association ..................... ...................... $1,189,600 $1,099,150Available for grants for agricultural research and for control of onchocerciasis ......... ........ 3,000 2,575

Totals ................................. ................................ $1,192,600 $1,101,725

Finanewial Statemeents 161

Statement of Changes in Resources Appendix CInternational DevelopmentAvailable for Commitment Association

For the fiscal years ended June 30, 1978 and June 30, 1977


July I-June 30

19771/78 1976/77

Resources ProvidedNet loss (See Appendix B) ................ ....................... ........ ...... $ (42,941) $ (8,108)Add-Certain translation adjustments as a result of currency depreciationsand appreciations .. 24,183 362Decrease in resources provided by operations $ (18,758) $ (7,746)

From Members:Subscriptions, unrestricted ........................ ........ ..... $ 2,612 2,570Supplementary resources-fourth replenishment ........................... - 115,020Supplementary resources-subscriptions and contributionsto fifth replenishment:(See Appendix F-Note E)First instalment ...................................... $2,540,389Second and third instalments ............... .......... 3,439,143 5,979,532

Adjustment of resources provided in prior fiscal yearsas a result of currency depreciations and appreciationsand adjustment resulting from change in basis ofvaluation of certain subscriptions and supplementaryresources from 1960 dollar to SDR ....................................... 178,869 52,636Increase in resources provided by members ................................... ...... 6,161,013 $ 170,226

Transfers from International Bank for Reconstruction and Development . .... ........ 90,450 90,675Grant participations in development credits . . ............. ..................... ......... 21,100 4,800Cancellations and refundings of development credits . . .............. 20,870 2,799Repayments of development credits .......................................... ...... .... 19,630 16,622

Total increase in resources provided ............. .................. ............. $6,294,305 $ 277,376

Resources UsedDevelopment credit agreements approved ............................................... $2,312,950 $1,307,500

Increase (Decrease) in Resources Available for Commitment ...... ............ $3,981,355 $(1,030,124)

Resources Available for CommitmentBeginning of fiscal year ....................... ........................................ 5,375 1,035,499End of fiscal year (See Appendix F-Note E) .......... .................................... $3,986,730 $ 5,375

Composition of Resources Available for CommitmentUnrestricted currencies ............... ......................... .................. $ 516,662 $ 446,634Investments. .................................................................. 205,386 165,354Unrestricted receivables on account of subscriptions and supplementary resources .... . .......... 3,998,111 2,078,965Receivables-Other .................................................................. 761,612 665,967Other assets . ........................................................ 42,826 62,753Subscriptions and supplementary resources not yet due .............. . ..................... 3,982,368 871,640Less-Undisbursed development credits (including development credits not yet effective)and other liabilities ................ ............ ......... ............ ................. (5,520,235) (4,285,938)

Totals ........ ......................................................... $3,986,730 $ 5,375

162 IDA Appendices

Summary Statement of Development CreditsJune 30, 1978 and June 30, 1977


June 30, 1978

Effective development credits held by Association Percent of totalDevelopment effective and

Members in whose credits approved non-effectiveterritories development Disbursed Undisbursed but not yet developmentcredits have been madel) portion(z) portion(') Total effevtive(4) credits

Afghanistan ................... $ 56,602 $ 59,232 $ 115,834 $ 40,000 1.12Bangladesh . ..... ..... 554,156 336,259 890,415 38,000 6.65Benin . ............... 33,167 24,539 57,706 11,000 .49Bolivia ......................... 58,203 6,135 64,338 9,000 .53Botswana ... ..................... 15,216 576 15,792 - .11

Burma ......................... 67,473 95,862 163,335 - 1.17Burundi ......................... 10,677 23,691 34,368 14,000 .35Cameroon ......................... 97,335 48,178 145,513 21,500 1.20Central African Empire . ....... 11,217 2,160 13,377 - .10Chad . ............... 26,869 18,718 45,587 19,800 .47

Chile ... ........ .............. 21,336 - 21,336 - .15China, Republic of .................. 14,792 - 14,792 - .11Colombia ......................... 21,897 - 21,897 - .16Congo, People's Republic of the ...... 19,802 2,402 22,204 - .16Costa Rica ......................... 5,109 - 5,109 - .04

Dominican Republic ................. 11,642 10,440 22,082 - .16Ecuador .......... ..... 36,396 1,912 38,308 - .27Egypt, Arab Republic of ......... ... 187,714 147,222 334,936 99,000 3.11El Salvador ....................... 19,848 7,572 27,420 - .20Ethiopia ........................ 155,105 176,793 331,898 24,000 2.55

Gambia, The . .................. ... 6,765 7,228 13,993 8,500 .16Ghana . ............... 86,710 21,100 107,810 - .77Guinea . ............... 12,043 8,957 21,000 - .15Guyana ............. ........... 8,152 5,493 13,645 10,000 .17Haiti ........................ 43,695 18,203 61,898 31,600 .67

Honduras ...................... 36,517 17,797 54,314 5,000 .42India ............... 3,754,893 1,400,258 5,155,151 608,500 41.29Indonesia ............... 483,742 88,757 572,499 70,000 4.60Ivory Coast ........................ 7,500 - 7,500 - .05Jordan ........................ 51,595 20,108 71,703 14,000 .61

Kenya .................... .... 120,187 82,841 203,028 48,000 1.80Korea, Republic of . .......... 114,506 32 114,538 - .82Lao People's Democratic Republic .... 50 8,150 8,200 - .06Lesotho . .............. 16,267 13,655 29,922 6,000 .26Liberia . ............... 11,260 12,740 24,000 6,000 .21Madagascar..... ................. 80,408 40,494 120,902 33,000 1.10Malawi . ............... 90,150 37,934 128,084 10,700 .99Mali ........................ 75,192 71,619 146,811 _ 1.05Mauritania ........................ 27,235 12,471 39,706 - .28Mauritius ........................ 18,099 2,321 20,420 - .15

Morocco ..... ................... 38,429 13,891 52,320 - .37Nepal ....................... . 24,275 87,167 111,442 50,200 1.16Nicaragua ........................ 22,965 434 23,399 - .17Niger ........ ................ 32,035 23,074 55,109 9,500 .46Nigeria ................. ....... 38,456 - 38,456 - .28

Pakistan ........................ 644,945 180,367 825,312 84,200 6.52Papua New Guinea . ......... 33,299 16,555 49,854 - .36Paraguay . .............. 36,012 12,900 48,912 - .35Philippines . ....................... 29,222 2,994 32,216 28,000 .43Rwanda . ......... .... 32,951 26,918 59,869 15,000 .54Senegal . .............. 66,033 57,233 123,266 - .88Sierra Leone . ...................... 16,426 15,058 31,484 - .23Somalia . .............. 50,466 46,720 97,186 9,000 .76Sri Lanka . ....................... 61,775 59,889 121,664 25,500 1.06Sudan . ............... 116,671 72,342 189,013 103,000 2.09


Appendix DInternational Development

Association

June 30, 1978

Effective development credits held by Association Percent of totalDevelopment effective and

Members in whose credits approved non-effectiveterritories development Disbursed Undisbursed but not yet developfnentcredits have been made(°' portion(') portion(') Total effective(0 credits

Swaziland . ...... ............. $ 6,294 $ 1,866 $ 8,160 $ - .06Syrian Arab Republic . ..... .. 37,489 10,751 48,240 - .35Tanzania . .............. 158,233 122,279 280,512 73,500 2.54Thailand . .............. 21,776 40,224 62,000 - .44Togo ............... ........ 18,969 33,546 52,515 5,800 .42

Tunisia .... ......... ....... 67,362 2,442 69,804 - .50Turkey ....................... 184,479 8,367 192,846 - 1.38Uganda ............. ...... 43,673 4,154 47,827 - .34Upper Volta ... . ... 38,809 41,596 80,405 17,400 .70Western Samoa...... 3,552 848 4,400 - .03

Yemen Arab Republic . ...... . 55,789 53,961 109,750 29,000 .99Yemen, People's Democratic

Republic of ............ ...... 19,983 17,908 37,891 11,400 .35Zaire . ............. ...... 98,570 95,435 194,005 9,000 1.45Zambia ...................... - - - 11,250 .08

Totals June 30, 1978 $ 8,468,460 $ 3,880,768 $12,349,228 $ 1,609,350 100.00Totals June 30, 1977 .. ........... $ 7,435,043 $ 3,514,984 $10,950,027 $ 757 ,200

Maturity Structure of Effective Development Credits

Periods June 30, 1978 Periods June 30, 1977

July 1, 1978 to June 30, 1979 .$ 21,314 July 1, 1977 to June 30, 1978 ....... .... $ 19,652July 1, 1979 to June 30, 1980 . . 27,191 July 1, 1978 to June 30, 1979 . . 21,315July 1, 1980toJune30,1981. .33,344 July 1, 1979 to June 30, 1980 ... ............ 27,197July 1, 1981 to June 30, 1982 .43,664 July 1, 1980 to June 30, 1981 ........ , . 33,358July 1,1982 to June 30, 1983 .57,943 July 1,1981 to June 30, 1982 ............. 43,674

July 1, 1983 to June 30, 1988 .598,830 July 1,1982 to June 30, 1987 ........ ....... 497,007July 1, 1988 to June 30, 1993 .957,438 July 1,1987 to June 30, 1992 ....... ..... .. 826,359July 1, 1993 to June 30, 1998 .1,559,699 July 1, 1992 to June 30, 1997 ...... ........ 1,344,688July 1,1998 to June 30, 2003 .1,862,031 July 1,1997 to June 30, 2002 ....... ..... .. 1,649,332July 1, 2003 to June 30, 2008 .1,862,032 July 1, 2002 to June 30, 2007 ... ............ 1,649,333

July 1, 2008 to June 30, 2013 .1,845,218 July 1, 2007 to June 30, 2012 ................. 1,643,859July 1,2013 to June 30, 2018 .1,669,812 July 1, 2012 to June 30, 2017. ... ...... 1,503,067July 1, 2018 to June 30, 2023 ....... ....... 1,355,075 July 1, 2017 to June 30, 2022 .1,232,960July 1, 2023 to June 30, 2028 ........ ...... 455,637 July 1, 2022 to June 30. 2027 ......... ..... . 458,226

Total . . $12,349,228 Total. ... $10,950,027

(X) All development credits are made to member governments or to the government of a territory of a member.,2) The disbursed portion includes adjustments to reflect the devaluations of the United States dollar in 1972 and 1973 except for a credit for $9,000,000

which is expressed and is repayable in legal tender dollars.r3i These amounts do not include $20,021,000 ($7,709,000-1977) of grant participations. The grant participations represent participations taken in a

number of development credits on a grant basis under the terms of an aid cooperation agreement between a member country and the Association.Of the undisbursed balance at June 30, 1978 the Association has entered Into irrevocable commitments to disburse $13,727,000 ($10,935,000-1977).

A) Development credit agreements totaling $1,264,450,000 ($555,200,000-1977) have been signed, but the credits do not become effective and dis-bursements thereunder do not start until the borrowers take certain actions and furnish certain documents to the Association; and agreements pro-viding for credits totaling $344,900,000 ($202,000,000-1977) have been approved by the Association but have not been signed.

164 IDA Appendices

Statement of Voting Power,and Subscriptionsand Supplementary ResourcesJune 30, 1978 and June 30, 1977Expressed in thousands of units of currency-see Notes to Financial Statements, Appendix F

Amou nts ofsubscriptions and

Amounts of subscriptions supplementaryand supplementary resources resources under

through the third thefourthandfifth Total subscriptions andVoting power replenishment replenishments supplementary resources (r

Expressed Expressed Expressedin in in

current current currentEspressed in United United United

Number Percent special drawing States States States PercentMembers(') of votes of total rights (2) dollars dollars dollars of total

Part I MembersAustralia .................. 51,581 1.55 SDR 111,980 $ 135,276 $ 233,934 $ 369,210 2.19Austria .................. 21,822 .66 34,560 41,749 91,046 132,795 .79Belgium .................. 32,052 .96 77,700 93,811 82,170 175,981 1.04Canada ..... .......... 137,025 4.12 304,530 367,835 673,057 1,040,892 6.16Denmark .................. 34,353 1.03 70,840 85,646 144,932 230,578 1.36Finland ... .......... . 18,404 .55 22,448 27,116 59,483 86,599 .51France .............. .... 138,669 4.16 362,032 437,142 692.485 1,129,627 6.68Germany, Federal Republic of. 236,831 7.11 476,560 575,500 1,526,511 2,102,011 12.44Iceland ................. 7,802 .23 550 665 2,132 2,797 .02Ireland .............. . 10,225 .31 7,030 8,498 16,634 25,132 .15Italy ................. 69,910 2.10 193,240 234,067 119,828 353,895 2.09Japan .. ........ 201,476 6.05 285,320 344,496 1,659,608 2,004,104 11.86Kuwait ................. 35,232 1.06 22,920 27,679 238,170 265,849 1.57Luxembourg......... ...... 8,363 .25 2,550 3,077 6,505 9,582 .06Netherlands ................ 52,693 1.58 141,080 170,339 192,759 363,098 2.15New Zealand .... . ........ 10,413 .31 - - 23,200 23,200 .14Norway ................. 29,869 .90 49,320 59,539 134,021 193,560 1.15South Africa .............. . 12,445 .37 20,080 24,241 17,012 41,253 .24Sweden ................. 93.315 2.80 206,225 249,176 439,556 688,732 4.08United Kingdom ............. 263,397 7.91 694,300 838,649 1,275,394 2,114,043 12.51United States(4).675,282 20.28 2,072,290 2,502,673 2,300,000 4,802,673 28.42TOTALS ................. 2,141,159 64.31 SDR 5,155,555 $6,227,174 $ 9,928,437 $16,155,611 95.61

Part 11 MembersAfghanistan ................ 10,084 .30 SDR 1,049 $ 1,297 $ 69 $ 1,366 .01Algeria .................. 18,481 .56 4,186 5,176 203 5,379 .03Argentina . . ....... 46,526 1.40 19,720 24,381 311 24,692 .15Bangladesh . . ...... ........ 22,239 .67 5,589 6,910 188 7,098 .04Benin . . ... ....... I.. 600 .02 500 618 - 618 (O)Bolivia .................. 2,473 .07 1,101 1,361 - 1,361 .01Botswana ................ 1,859 .06 166 205 - 205 (5)Brazil .................. 59,655 1.79 19,720 24,381 551 24,932 .15Burma .................. 12,922 .39 2,099 2,595 86 2,681 .02Burundi ..... .......... 9,407 .28 790 976 36 1,012 .01Cambodia . . ............... 7,826 .24 1,060 1,310 6 1,316 .01Cameroon .......... . . 7,771 .23 1,049 1,295 35 1,330 .01Central African Empire ....... 6,685 .20 519 642 17 659 (srChad . . ........ 2,093 .06 519 642 - 642 (s)Chile . . ...... ......... 1,206 .04 3,530 4,364 - 4,364 .03China, Republic of ...... 91,311 2.74 31,436 38,866 1,581 40,447 .24Colombia ....... .......... 17,132 .51 3,717 4,595 194 4,789 .03Comoros ................. 5,774 .17 83 103 3 106 (5)Congo,People's Republicof the 6,685 .20 519 642 17 659 (rOCosta Rica ................ 6,023 .18 208 257 7 264 (5)


Appendix EInternational Development

Association

Amountsofsubscriptionis and

Aniounts of subscriptions supplementaryand supplementary resources resources under

through the third thefourth andfifth Total subscriptions andVoting power replenishment replenishments supplemeirtary resources '3)

Expressed Expressed ExpressedIs in In

current current currentExpressed in United United United

Number Percent special dravving States States States PercentMembers ' of notes of total rights n1 dollars dollars dollars of total

Part 11 Members (continued)Cyprus .................. 9,407 .28 SDR 790 $ 976 $ 38 $ 1,014 .01Dominican Republic ....... . 8,426 .25 435 537 66 603 (51Ecuador .......... 2,200 .07 676 835 - 835 (5)Egypt, Arab Republic of ...... 21,403 .64 5,277 6,524 265 6,789 .04El Salvador . ,. . 6,244 .19 331 409 11 420 (5)

Equatorial Guinea .... . 1,967 .06 332 411 - 411 (5)Ethiopia .6,687 .20 539 667 18 685 (5)Fiji ................. 2,130 .06 581 719 - 719 15)Gabon ....... ,,... 2,093 .06 519 642 - 642 (5)Gambia, The ............... 6,182 .19 277 343 8 351 5)Ghana . . ...... 10,711 .32 2,452 3,032 77 3,109 .02Greece....... . .... 14,288 .43 2,618 3,176 114 3,290 .02Grenada .... ......... 5,782 .17 94 116 2 118 ( 5)Guatemala ......... ....... 8,417 .25 415 514 21 535 (5)Guinea . ..... 7,771 .23 1,049 1,297 36 1,333 .01Guinea-Bissau .... . ...... 528 .02 140 173 - 173 (5)

Guyana ................. 9,553 .29 842 1,041 37 1,078 .01Haiti .............. . 9,407 .28 790 976 40 1.016 .01Honduras ... .......... 6,242 .19 311 385 13 398 (5)

India .. ... ..... 119,375 3.59 41,919 50,572 2,064 52,636 .31Indonesia ... ........ 38,128 1.15 11,531 14,256 581 14,837 .09Iran. ... ... 15,455 .46 4,717 5.690 162 5,852 .03Iraq. 7,246 .22 790 976 28 1,004 .01Israel ............... .. 9,386 .28 1,745 2,108 359 2,467 .01Ivory Coast ....... ...... 7,771 .23 1,049 1,297 35 1,332 .01Jordan ........ ......... 6,242 .19 311 376 12 388 (5)Kenya ................. 11.960 .36 1,745 2,156 82 2,238 .01Korea, Republic of ........ 10,932 .33 1,309 1,618 1,039 2,657 .02Lao People's Dem. Rep ....... 6,685 .20 519 642 2 644 5'Lebanon ........ ...... 590 .02 450 556 - 556 (5tLesotho ... 7,747 .23 166 206 7 213 (5'Liberia ................. 2,273 .07 790 976 - 976 .01Libya ................. 7,771 .23 1,049 1,297 37 1,334 .01Madagascar ...... . 702 .02 1,010 1,249 - 1,249 .01Malawi ................. 9.407 .28 790 976 40 1,016 .01Malaysia .......... ... 11,059 .33 2.618 3,237 91 3,328 .02Maldives .......... ...... 7,382 .22 31 39 1 40 0)Mali. 7,479 .22 904 1,117 30 1,147 .01Mauritania ..... ........ . 6,685 .20 519 642 17 659 ' 5Mauritius ... .. ........ 9,702 .29 924 1,141 42 1,183 .01Mexico ......... ........ 9,253 .28 8,740 10,709 132 10,841 .07Morocco .. ......... 13,271 .40 3,667 4,534 131 4,665 .03Nepal .............. ... 8,688 .26 519 642 24 666 t 5)

(contiiiued)

166 IDA Appendices

Statement of Voting Power, Appendix EInternational Developmentand Subscriptions Association

and Supplementary Resources(cncluded}June 30, 1978 and June 30, 1977Expressed in thousands of units of currency-see Notes to Financial Statements, Appendix F

Amounts ofsubscriptions and

Amounts of subscriptions supplementaryand supplementary resources resources under

through the third thefourthandfifth Total subscriptions andVoting power replenishment replenishments supplementary resources (3)

Expressed Expressed Expressedin in in

current current currentExpressed in United United United

Number Percent special drawing States States States PercentMembers(') oF votes of total rights (2) dollars dollars dollars of total

Part II Members (continued)Nicaragua ................. 6,242 .19 SDR 311 $ 385 $ 11 $ 396 (5)Niger ................. 6,685 .20 519 642 18 660 (5)Nigeria ................. 4,057 .12 3,491 4,302 - 4,302 .03Oman .................. 6,244 .19 331 409 11 420 (5)Pakistan .................. 35,355 1.06 10,582 13,083 529 13,612 .08Panama .................. 5,657 .17 21 26 1 27 (5)Papua New Guinea .......... 9,698 .29 894 1,105 45 1,150 .01Paraguay ...... ......... 6,242 .19 311 385 11 396 (5)Peru ................. 854 .03 1,770 2,188 - 2,188 .01Philippines ................. 16,583 .50 5,296 6,547 274 6,821 .04Rwanda ................. 7,246 .22 790 976 25 1,001 .01Sao Tome and Principe ...... 514 .02 70 87 - 87 (5)Saudi Arabia ............... 34,939 1.05 3,700 4,574 356,169 360,743 2.14Senegal ................. 11,960 .36 1,745 2,158 86 2,244 .01Sierra Leone ....... ........ 7,246 .22 790 975 22 997 .01Somalia .................. 7,246 .22 790 976 28 1,004 .01Spain ................. 29,746 .89 12,590 15,188 10,186 25,374 .15Sri Lanka.. -.............. 15,705 .47 3,148 3,891 67 3,958 .03Sudan ................. 7,771 .23 1,049 1,295 26 1,321 .01Swaziland ................. 6,299 .19 332 411 9 420 (5)Syrian Arab Republic ........ 7,651 .23 987 1,220 34 1,254 .01Tanzania .................. 11,960 .36 1,745 2,158 82 2,240 .01Thailand ................. 15,705 .47 3,148 3,891 156 4,047 .02Togo ... . ................ 7,246 .22 790 976 27 1,003 .01Trinidad and Tobago ......... 770 .02 1,350 1,669 - 1,669 .01Tunisia ......... . 2,793 .08 1,569 1,940 - 1,940 .01Turkey ................. 18,229 .55 6,086 7,523 184 7,707 .05Uganda .................. 11,960 .36 1,745 2,158 82 2,240 .01Upper Volta ................ 6,685 .20 519 642 18 660 (5)Viet Nam ................. 8,889 .27 1,569 1,940 33 1,973 .01Western Samoa ............. 5,782 .17 94 116 2 118 (5)Yemen Arab Republic ... .... 8,494 .26 446 552 23 575 (5)Yemen, People's Dem. Rep. of 10,591 .32 1,226 1,516 62 1,578 .01Yugoslavia ................. 20,711 .62 8,080 9,747 11,939 21,686 .13Zaire .................. 12,164 .37 3,138 3,879 70 3,949 .02Zambia ................. 1,038 .03 2,690 3,325 - 3,325 .02TOTALS .................. 1,188,336 35.69 SDR 287,552 $ 353,256 $ 389,196 $ 742,452 4.39GRANDTOTALSJune30,1978 3,329,495 100.00 SDR 5,443,107 $6,580,430 $10,317,633 $16,898,063 100.00GRANDTOTALSJune30,1977 2,702,565 $ 5,442,923(6) $6,566,063(6) $ 4,164,485 $10,730,548

(1) See Appendix F-Note A, for an explanation of the two categories of members.02) The Association has expressed its subscriptions and supplementary resources in special drawing rights with effect from April 1, 1978.

(3) Includes $3,984,025,000 ($871,679,000-1977) equivalent in current United States dollars which is notyet due and is payable by the respective memberson various dates through fiscal year 1981. (See Appendix F-Note E.)

0) Votes are adjusted in respect of the first instalment of the fifth replenishment only. (See Appendix F-Note E.)(5) Less than .005 percent.0) Expressed in terms of United States dollars of the weight and fineness in effect on January 1,1960 and translated into current United States dollars

at the rate of $1.20635 per 1960 dollar.


Notes to Financial Statements Appendix FInternational Development

AssociationJune 30, 1978 and June 30, 1977

Summary of Significant Accounting and Pending action on this matter by the Executive Directors, theRelated Policies financial statements have been drawn up in accordance with

the General Counsel's opinion. The value of its subscriptionsTranslation of Currencies and supplementary resources through the third replenishmentThe Association is an international organization which conducts has been expressed on the basis of the SDR in terms of Unitedits operations in the currencies of all of its members and States dollars as computed by the Fund ($1 .23953 per SDR) onSwitzerland. The Association's policy is to translate its assets June 30, 1978, for the amounts of subscriptions and supple-and liabilities in currencies other than United States dollars mentary resources undisbursed at June 30, 1978; at the dailyat market rates of exchange to the United States dollar at the SDR rate for amounts disbursed from the effective date of theend of each fiscal quarter. Translation adjustments relating to Second Amendment to June 30, 1978: and at the rate ofsubscriptions and supplementary resources are accounted $1.20635 per 1960 dollar for amounts disbursed prior to thefor as described in Note C; all other translation adjustments effective date of the Second Amendment. Pending clarificationare included in the determination of net income. Income and of the effect of the Second Amendment on repayment obliga-expenses are translated at an average of the market rates of tions under its development credit agreements the Associationexchange in effect during each quarter. has continued to base these upon the par value ($1.20635 per

1960 dollar) in effect immediately prior to the effectiveness ofThe subscriptions and supplementary resources provided the Second Amendment.under the first three replenishments are expressed in termsof "United States dollars of the weight and fineness in effect Expressing the value of certain of the Association's subscrip-on January 1, 1960" (1960 dollars) and from 1973 until March tions and supplementary resources in terms of the SOR rather31, 1978 have been translated by the Association, for purposes than in terms of the 1960 dollar (translated at the rate ofof the financial statements, into current United States dollars $1.20635) as described in the preceding paragraph does notat the rate of $1.20635 per 1960 dollar. The supplementary have a material effect on the financial position or results ofresources provided under the fourth and fifth replenishments operations of the Association. If the value of these subscrip-are expressed and payable in members' currencies and are tions and supplementary resources were expressed in termstranslated (1) at market rates of exchange at the end of each of $1.20635 the amount of $12,914,038,000 shown in thequarter for amounts receivable and for amounts received and Statement of Condition would have decreased by $14,145,000not yet disbursed, and (2) at market rates of exchange on the to $12,899,893,000. If the Association had expressed itsdates of disbursement in respect of those amounts which have development credits in terms of the SDR at June 30, 1978 thebeen disbursed or converted into another currency. The Asso- amount of $12,349,228,000 shown in the Statement of Condi-ciation's development credits are denominated in current tion would have increased by $232,920,000 to $12,582,148,000United States dollars. However, under the Association's Gen- and would have resulted in a net income of $189,979,000eral Conditions Applicable to Development Credit Agree- rather than a net loss of $42,941,000.ments, the principal amounts of the credits disbursed are Investmentsrepayable in amounts equivalent, at the dates of repayment, Investment securities are recorded at cost or amortized cost.to the value of the currencies disbursed intermsof 3960dollars. Gains or losses on sales of investments, measured by theOn April 30, 1976, the Board of Governors of the International difference between average cost and proceeds of sales, areMonetary Fund (the Fund) approved proposed amendments recorded as an element of income from investments.to the Fund's Articles of Agreement (the Second Amendment) Administrative Expenseswhich entered into force on April 1, 1978. Under the Second Administrative expenses of the Association are paid by theAmendment, currencies no longer have par values, gold is International Bank for Reconstruction and Development (theabolished as a common denominator of the monetary system Bank). The Association reimburses the Bank for such expensesand all calculations for the purposes of the Fund's Articles are by payment of a management fee representing its share ofmade on the basis of the special drawing right (SDR). the administrative expenses incurred by the Bank.As a result of the Second Amendment and the simultaneous Note A-Restricted Currenciesrepeal of Section 2 of the Par Value Modification Act(31 U.S.C. The membership of the Association is divided into two cate-449), the provision of United States law defining the par value gories: (1) Part I members, which pay all subscriptions andof the United States dollar in terms of the SDR and gold, the supplementary resources provided to the Association in con-pre-existing basis for translating the term "United States vertible currencies which may be freely used or exchangeddollar of the weight and fineness in effect on January 1,1960" by the Association in its operations; (2) Part II members,into current United States dollars or into any other currency which pay ten percent of their initial subscriptions in freelyno longer exists. convertible currencies and the remaining ninety percent of theirThe General Counsel of the Association has rendered a legal initial subscriptions and all additional subscriptions and anyopinion concluding in substance that upon the entry into force supplementary resources provided to the Association in theirof the Second Amendment references in the Association's own currencies. The Articles of Agreement of the AssociationArticles of Agreement to the 1960 dollar should be read as and subsequent replenishment agreements provide that thereferring to the SDR, as determined from time to time by the currency of any Part 11 member paid in by it may not be usedFund and the mutual obligations of each member and the by the Association for projects financed by the Association andAssociation with respect to maintenance of value of certain located outside the territories of the member except by agree-currency holdings will be measured by the value of the cur- ment between the member and the Association. The amountsrency in question in terms of the SDR at any given time. It of $59,120,000 ($60,795,000-1977) under the heading Duewould be consistent with this opinion also to substitute the from Banks,$157,911,000($161,557,000-1977)included underSDR for the 1960 dollar as the measure of the development the heading Receivable on Account of Subscriptions and Sup-credit repayment obligation but this would require approval plementary Resources and $54,174,000 ($43,968,000-1977)of the Executive Directors and would involve other changes included in Notional Amounts Required to Maintain Value ofin the development credit agreements. Currency Holdings under the headings Other Assets and OtherThe General Counsel has, however, also stated that in the Liabilities respectively, were subject to such restrictions.exercise of their statutory power under Article X of the Asso- Note B-investmentsciation's Articles, the Executive Directors could conclude that The market value of investment securities was $203,267,000the 1960 dollar would be taken to mean $1.20635 current ($165,425,000-1977) compared with a cost or amortized costdollars, with the consequence that maintenance of value would of $205,386,000 ($165,354,000-1977) and face value ofbe measured by that standard. $206,066,000 ($165,834,000-1977), including investments not

(continued)

168 IDA Appendices

Notes to Financial Statements (continued)

June 30, 1978 and June 30, 1977

Note B (continued)traded in the market which were valued at their cost of majority of the members, and there were differences between$27,670,000 ($41,032,000-1977). Investments include securi- market rates of exchange and the rates at which undisbursedties purchased under agreements to resell amounting to subscriptions and supplementary resources of members$3,272,000 ($5,300,000-1977). through the third replenishment of the Association's resources

had been paid or were payable, such differences were shownNote C- Maintenance of Value as Translation Adjustments on Subscriptions and Supplemen-Article IV, Section 2 of the Association's Articles of Agreement tary Resources under the heading Other Assets. The amountsprovides for the maintenance of the value, as of the time of $82,268,000 ($96,510,000-1977), represented notional re-subscription, of the Association's currency holdings or demand ceivables $87,103,000 ($101,276,000-1977) and payablesobligations substituted therefor representing ninety percent $4,835,000 ($4,766,000-1977). Maintenance of value obliga-of each member's initial subscription, only so long as and to tions in respect of such undisbursed amounts would be deter-the extent that such currency has not been initially disbursed mined upon their disbursement. According to the legal opinionor exchanged for the currency of another member. This Section of the Association's General Counsel referred to above,requires: (1) the member to make additional payments to the maintenance of value pursuant to Article IV, Section 2 of theAssociation in the event that the par value of its currency is Articles of Agreement would be determined on the basis ofreduced or the foreign exchange value of its currency has, in the SDR, and is treated in the financial statements on thatthe opinion of the Association, depreciated to a significant basis. Sincethe Association is still consideringthe implicationsextent in its territories and (2) the Association to reimburse of the Second Amendment, and in view of the questionsthe member in the event that the par value of its currency is referred to above, the timing of any establishment and settle-increased or the foreign exchange value of its currency has, in ment of these notional maintenance of value items is uncertain.the opinion of the Association, appreciated to a significant Accordingly, they are included in Other Assets, and Liabilitiesextent in its territories. as notional maintenance of value obligations. At June 30, 1977,The provisions of Article IV, Section 2 have by agreement the comparable amounts were shown as net Translationbeen extended to cover additional subscriptions and supple- Adjustments on Subscriptions and Supplementary Resourcesmentary resources of the Association through the third replen- under the heading Other Assets; these amounts have beenishment but are not applicable to those of the fourth and fifth reclassified for comparative purposes as notional receivablesreplenishments, On June 19, 1972, the Executive Directors and payables.resolved that for all members that established central rates Note D-Borrowings from Swiss Confederationfor their respective currencies, pending establishment of new The Association has entered into agreements to borrow a totalpar values for their currencies, maintenance of value obliga- of SwF 182 million (US equivalent $98,140,000-1978;tions be settled on the basis of those central rates. It was $73 957 000-1977) from the Swiss Confederation. The firstfurther decided that with respect to any member currency loan for SwF 52 million was made in fiscal year 1967 and thefunctioning under a system under which the market rate was second loan for SwF 130 million was made in fiscal year 1973.not confined within announced intervention margins, mainte- The loans carry no interest and are each repayable in fortynance of value obligations would be determined on the basis annual instalments commencing on July 1,1979, in the case ofof market rates in effect on the respective dates of disburse- the first loan, and November 8 1983 in the case of the secondment of such currency, but only for the amounts disbursed. loan. The firstten instaiments of each loan will be one percent

Prior to April 1, 1978, where market rates of exchange were of the respective principal amounts and the remaining thirtynot related to par values or central rates as in the cases of a instalments will be three percent of such principal amounts.

Note E-Subscriptions and Supplementary ResourcesSubscriptions and supplementary resources have been translated as set forth under Summary of Significant Accounting andRelated Policies. At June 30, 1978 and 1977 these were as follows:

1978 1977Expressed in United States DoUlis

(in thousands)Initial subscriptions and first three replenishments:

Subscriptions (SDR 1,065,103-1978, United Statesdollars of 1960 $1,064,919-1977) ......... . ...................... $1,291,205 $1,284,664

Supplementary resources (SDR 4,378,004-1978,United States dollars of 1960 $4,378,004-1977) ... ................ 5,289,225 5,281,399

$6,580,430 6,566,063Fourth and fifth replenishments:Subscriptions ..... ............. ...................... $ 46,570 33,693Supplementary resources ........ .............. ........... 10,271,063 4,130,792

$10,317,633 4,164,485Less-Portion for which payment is not yet due ..................... 3,984,025 871,679

6,333,608 3,292,806

Totals .. $12,914,038 $9,858,869

The aggregate of $3,984,025,000 not yet due, will be due as follows:Fiscal years Amounts

(in thousands)

1979 .......................................... $2,241,7131980 .................... ...................... 1,736,6761981 ......... ............................. .... 5,636

$3,984,025

Fiia,ncial Statements 169

Appendix FInternational Development

Association

Note E (cont[nued)

The fifth replenishment of the Association's resources became the Association only when unqualified notifications coveringeffective on November 29, 1977. At that date notifications had at least eighty percent of the respective instalments havebeen received from 17 members, of which 14 were Part I been deposited. At June 30, 1978 rates of exchange, unquali-members (including the United States, as mentioned in the fied notifications in respect of the second and third instal-following paragraph) and a non-member, the United Arab ments totaled the equivalent of $3,439,143,000.Emirates, that they would contribute to the fifth replenish-mentthe amount of $6,042,010,000, computed atthe March 14, Note F-Transfers from International Bank for1977 International Monetary Fund representative rates of ex- Reconstruction and Developmentchange. Subsequentto November29, but priorto June30, i978, The International Bank for Reconstruction and Developmentfurther notifications were received from Part I members, whose has authorized transfers by way of grants to the Associationcontributions aggregated the equivalent of $1,028,491,000. totaling $1,225,000,000 ($1,125,000,000-1977) from-net in-The contributions to the fifth replenishment authorized come of the Bank for the fiscal years ended June 30. 1964under the Board of Governor's resolution plus an additional throughJune3O,977.Ofthisamount$35,400,000($25,850,000amount for a contnbution pledged by Saudi Arabia totaled -1977) may be used by the Association or had been disbursedthe equivalentof $7,731,701,000. Thetotal value of all autho- for grants for agricultural research and for the control ofrized contributions to the replenishment was the equivalent of onchocerciasis. During the periods covered by the financial$8,299,037,000 at the June 30, 1978 rates of exchange. Pur- statements $650,000 ($175,000-1977) previously allocated forsuant to the resolution, contributions are payable in the such grants has reverted to the Association for its generalmembers' currencies and are due in three equal annual purposesinstalments unless contributing members notify the Associa-tion that they wish to avail themselves of certain optionsproviding for a different mode of payment. Note G-Translation Adjustments

In accordance with the policies discussed in the Summary ofIn connection with its participation in the fifth replenishment, Significant Accounting and Related Policies the Associationthe United States notified the Association that it would pay has recorded translation adjustments for the current fiscalthe amount of $800,000,000 (representing the first of three year of $23,279,000 ($804,000-1977) representing charges ofequal annual instalments of its contribution totaling $22,584,000 as a result of currency depreciations and appre-$2,400,000,000) and that, subject to obtaining the necessary ciations (including $24,183,000 charges on the Swiss Confed-appropriations, it would pay the remaining $1,600,000,000. eration borrowings) and charges of $695,000 representing theThe notification by the United States is thus qualified with effect of the valuation change to the SDR on that portion ofrespectto $1,600,000,000 of its contribution. The resolution pro- the Association's subscriptions and supplementary resourcesvides that unless unqualified notifications are received cover- paid in United States dollars.ing in the aggregate at least eighty percent of the second andthird instalments respectively, the Association may not enter Since the value of the SDR in terms of current dollars may varyinto new credits, disbursements for which would be drawn from day to day, the portion of the Association's subscriptionsfrom these instalments, unless the credits are qualified in and supplementary resources paid in dollars will be subject toa manner whereby they become effective and binding on further adjustment at the end of each accounting period.

170 IDA Appendices

Report of Financial StatementsIndependent Accountants Covered by the

Foregoing Report1801 K STREET, N.W.

WASHINGTON, D.C. 20006JULY 31, 1978

ToINTERNATIONAL DEVELOPMENT ASSOCIATIONWASHINGTON, D.C.

We have examined the accompanying financial statements Statement of Condition . ................ Appendix A(Appendices A through F) of International Development Asso-ciation for the years ended June 30, 1978 and 1977. Our Statement of Income..Appendix Bexaminations of these statements were made in accordance Statement of Transferswith generally accepted auditing standards and accordingly from International Bank forincluded such tests of the accounting records and such other Reconstruction and Development .............. Appendix Bauditing procedures as we considered necessary in the circum-stances. Statement of Changes in Resources

Available for Commitment . . ... Appendix CAs described in the Summary of Significant Accounting andRelated Policies in the notes to these financial statements, Summary Statement ofmanagement believes that it would be consistent with General Development Credits . . .......... Appendix DCounsel's opinion with respect to the valuation of certain of Statement of Voting Power,the Association's subscriptions and supplementary resources, and Subscriptions andto also substitute the special drawing right (SDR) for the 1960 Supplementary Resources . .............. Appendix Edollar as the measure of the development credit repaymentobligations of the Association's borrowers. However, this Notesto Financial Statements . .............. Appendix Fwould require approval of the Executive Directors and involveother changes in the development credit agreements. Accord-ingly, until these events have occurred, the repayment obliga-tions will not be revalued.

In our opinion, subject to the effect, if any, which may resultupon the resolution of the matter referred to in the precedingparagraph, the financial statements examined by us presentfairly, in terms of United States currency, the financial positionof International Development Association as of June 30, 1978and 1977, the results of its operations and changes in resourcesavailable for commitment for the years then ended, in con-formity with generally accepted accounting principles con-sistently applied.

PRICE WATERHOUSE & CO.

IDA Appenidices 171

Statement of Development Credits Appendix GApproved during Fiscal Year 1978 International DelOopnntJuly 1,1977-June 30,1978(US dollars)

Date of Service PrincipalPurpose and berrower approval Maturities charge amount

AfghanistanAgriculture and Rural Development: Khanabad SecondIrrigation ............... March 21, 1978 1988/2027 3A% $22,000,000

Agriculture and Rural Development: Fruit and Vegetable Export March 21, 1978 1988/2027 a/4% 18,000,000BangladeshTransportation: Second Inland Water Transport .............. July 12, 1977 1987/2027 3/A% 5,000,000Nonproject: Sixth Imports Program .................... .... November 29, 1977 1988/2027 3% 75,000,000Agriculture and Rural Development: Jute ............ ..... January 31, 1978 1988/2027 3A% 21,000,000Agriculture and Rural Development: Second Foodgrain Storage March 30, 1978 1988/2028 3/4 % 25,000,000Industrial Development and Finance: SecondSmall-scale Industry ................................ ... June 8, 1978 1988/2028 3 A% 7,000,000

Agriculture and Rural Development: Agricultural Research .... June 13, 1978 1988/2028 34% 6,000,000BeninTransportation: Third Highway .. ........ .................. November 8, 1977 1987/2027 3A% 10,000,000Transportation: Cotonou Port .................... ........ June 8,1978 1988/2028 3A % 11,000,000

BoliviaAgriculture and Rural Development: Ulla Ulla RuralDevelopment ......................................... January 12, 1978 1988/2027 3A% 9,000,000

BurmaAgriculture and Rural Development: Seed Development ....... November 1, 1977 1988/2027 ¾% 5,500,000

BurundiIndustrial Development and Finance: Banque Nationale deODveloppement Economique (BNDE) ...................... July 7, 1977 1987/2027 3/4% 3,400,000

Transportation: Second Highway ........... . ............... February 28, 1978 1988/2027 3/4 % 14,000,000CameroonTransportation: Feeder Roads .. .......... November 15, 1977 1988/2027 3/4% 6,500,000Agriculture and Rural Development: Second Semry Rice-Societe d'Expansion et de Modernisation de la Riziculturede Yagoua (SEMRY) .................................... January 19, 1978 1988/2027 3A % 14,500,000

Agriculture and Rural Development: ZAPI East integratedRural Development-Zones d'Actions Prioritaires Int6gres(ZAPI) ......................................... March 7,1978 1988/2028 Y3/% 8,500,000

Agriculture and Rural Development: Western Highlands RuralDevelopment ............... ......... ............. March 28, 1978 1988/2027 3/4% 13,000,000

ChadAgriculture and Rural Development: Sahelian Zone ... . ..... September 6, 1977 1987/2027 3Ao% 1,900,000Agriculture and Rural Development: Second Livestock ......... March 28, 1978 1988/2028 34 % 11,500,000Education: Third Education-Rural Primary Education ......... May 23, 1978 1988/2028 3A % 8,300,000

Egypt, Arab Republic ofWater Supply and Sewerage: Water Supply Engineering ...... December 6,1977 1980/1988 3A % 2,000,000Telecommunications: Second Telecommunications-ArabRepublic of Egypt Telecommunications Organization(ARETO) ................................... ...... March 7,1978 1988/2027 34% 53,000,000

Agriculture and Rural Development: Agricultural Development. June 27, 1978 1988/2028 34% 32,000,000Urban Development: Sites and Services ........ ............ June 27, 1978 1988/2028 Y4% 14,000,000

EthiopiaAgriculture and Rural Development: Grain Storage andMarketing ...................................... April 4, 1978 1988/2027 3 /4% 24,000,000

Gambia, TheEducation: Technical and Vocational Training ................. April 18, 1978 1988/2028 3A% 5,500,000Industrial Development and Finance: Rural and UrbanEnterprises-The Gambia Commercial and DevelopmentBank (GCDB) ......................................... May 25, 1978 1988/2028 34% 3,000,000

GuyanaAgriculture and Rural Development: Black Bush Irrigation ... June 6, 1978 1988/2028 Y4 % 10,000,000

HaitiWater Supply and Sewerage: Provincial Towns Water Supply December 13, 1977 1988/2027 Y3% 6,600,000Education: Second Education-Primary Education, Teacher,Vocational, and Agricultural Training ....................... February 21, 1978 1988/2027 Y4 % 10,000,000

Transportation: Fifth Transport-Highway/Ports ......... ... May 18, 1978 1988/2028 3A % 15,000,000HondurasEducation: Second Education-Rural Primary Education ....... March 14, 1978 1988/2028 3Au% 5,000,000

IndiaAgriculture and Rural Development: Maharashtra Irrigation .... July 19, 1977 1987/2026 3A% 70,000,000Agriculture and Rural Development: Rajasthan AgriculturalResearch and Extension ................................... July 19, 1977 1987/2027 Y4 % 13,000,000

Agriculture and Rural Development: Orissa Irrigation .......... September 6, 1977 1988/2027 3A % 58,000,000(continued'

172 IDA Appendices

Statement of Development CreditsApproved during Fiscal Year 1978(continued)July 1,1977-June 30,1978(US dollars)

Date at Service PrincipalPurpose and borrower approval Maturities charge amount

India (continued)Agriculture and Rural Development: Second Foodgrain Storage November 15, 1977 1988/2027 34 % $107,000,000Urban Development: Second Calcutta Urban Development ..... December 13, 1977 1988/2027 8/4 % 37,000,000Agriculture and Rural Development: Bihar AgriculturalExtension and Research ............ ...................... December 27, 1977 1988/2027 3/4% 8,000,000

Agriculture and Rural Development: Karnataka Irrigation... _ . April 4,1978 1988/2028 3/4% 126,000,000Power: Korba Thermal Power .......... ................... April 18, 1978 1988/2027 3

/4 % 200,000,000Agriculture and Rural Development: Jammu-KashmirHorticulture, Fruit Processing and Marketing ............... May 18, 1978 1988/2028 3/4% 14,000,000

Agriculture and Rural Development: Gujarat Irrigation .... ... May 23, 1978 1988/2028 1/4% 85,000,000Agriculture and Rural Development: Andhra Pradesh Fisheries May 30, 1978 1988/2028 3/4% 17,500,000Agriculture and Rural Development: Second National Seed .... May 30, 1978 1988/2028 34% 16,000,000Agriculture and Rural Development: National Dairy ........... June 8, 1978 1988/2028 3/4% 150,000,000

IndonesiaIndustrial Development and Finance: Small Enterprises-Bank Indonesia (BI) .......................... ........... March 30, 1978 1988/2028 34 % 40,000,000

Agriculture and Rural Development: Rural Credit . ............ June 13, 1978 1988/2028 114% 30,000,000JordanWater Supply and Sewerage: Third Amman Water Supplyand Sewerage ........................................ March 23, 1978 1988/2028 3/4% 14,000,000

KenyaIndustrial Development and Finance: Small-scale Industry-Kenya Industrial Estates (KIE) ..................... ...... November 22, 1977 1988/2027 34% 10,000,000

Urban Development: Second Urban Project-Sites andServices ................................... ..... April 18, 1978 1988/2028 34% 25,000,000

Education: Fourth Education-Rural Trained Manpower ........ May 9,1978 1988/2028 3/4% 23,000,000Lao People's Democratic RepublicAgriculture and Rural Development: Agricultural Rehabilitationand Development ........................................ December 27, 1977 1988/2027 34% 8,200,000

LesothoEducation: Second Education-Technical Education andImprovement of Skills .................. ................ November 15, 1977 1988/2027 34% 7,500,000

Agriculture and Rural Development: Basic AgriculturalServices Program... .................................... April 27, 1978 1988/2028 3/4% 6,000,000

LiberiaAgriculture and Rural Development: Rubber Development ..... March 30, 1978 1988/2028 3/4% 6,000,000MadagascarPower: Andekaleka Hydroelectric... .................. June 1,1978 1988/2028 3/4% 33,000,000

MalawiTransportation: Third Highway ............... December 22, 1977 1988/2027 34% 10,500,000Agriculture and Rural Development: Shire Valley AgriculturalConsolidation ......................................... June 6,1978 1988/2028 3/4% 10,700,000

MaliEducation: Second Education-Science and Technology inRural and Secondary Schools ........ . .................... July 7, 1977 1987/2027 3/4% 10,000,000

Agriculture and Rural Development: Second. Mopti Rice ........ November 29, 1977 1988/2027 3/4% 15,000,000NepalTransportation: Second Highway ......................... July 7,1977 1987/2027 14% 17,000,000Education: Technical Education ............ :. ............... February 28, 1978 1988/2027 3/4% 5,700,000Telecommunications: Third Telecommunications ... .......... May 11, 1978 1988/2028 34% 14,500,000Agriculture and Rural Development: Sunsari-MorangIrrigation and Drainage Development, Stage I ............... May 25, 1978 1988/2028 3/4% 30,000,000

NigerAgriculture and Rural Development: Forestry ......... ....... May 16, 1978 1988/2028 3/4% 4,500,000Industrial Development and Finance: Industrial and ArtisanSector Employment Creation-Banque de D6veloppement dela Republique du Niger (BDRN) .......... _ ............... May 23, 1978 1988/2028 34% 5,000,000

PakistanAgriculture and Rural Development: Hill FarmingTechnical Development ................................... November 22, 1977 1987/2027 3h% 3,000,000

Agriculture and Rural Development: Salinity Control andReclamation (SCARP IV), Punjab .......................... December 6, 1977 1988/2027 3 h % 70,000,000

Agriculture and Rural Development: Hazara ForestryPreinvestment ......................................... December 6,1977 1988/2027 14% 1,700,000

Agriculture and Rural Development:Tarbela Dam-Second Supplemental ............... .................... February 28, 1978 1988/2027 3 % 35,000,000

Agriculture and Rural Development: Punjab Extension andAgricultural Development ................................. May 25, 1978 1988/2028 34% 12,500,000

Statement of Development Credits 173

Appendix GInternational Development

Association

Date of Service PrincipalPurpose and borrower approval Maturities charge amount

PhilippinesAgriculture and Rural Development: Rural Infrastructure ...... April 11, 1978 1988/2027 3

/4% $ 28,000,000RwandaTransportation: Fourth Highway ....... . ................... February 21, 1978 1988/2027 3/4% 15,000,000

SenegalTechnical Assistance: Parapublic Sector Technical Assistance. . January 19, 1978 1988/2027 3/4% 6,300,000Agriculture and Rural Development: Debi-Lampsar Irrigation ... March 7, 1978 1988/2027 3/4% 20,000,000

Sierra LeonePower: Third Power ...................................... July 12, 1977 1987/2027 3/4% 8,200,000

SomaliaEducation: Third Education-Curriculum Development,Teacher Training, and Rural Specialized Manpower .... ... August 9,1977 1987/2026 3/4% 8,000,000

Technical Assistance: Project Preparation Studies ......... June 6,1978 1988/2028 %% 3,000,000Water Supply and Sewerage: Mogadishu Water Supply ........ June 6,1978 1988/2028 3/4% 6,000,000

Sri LankaIndustrial Development and Finance: Fourth DevelopmentFinance Corporation of Ceylon (DFCC) ...................... September 13, 1977 1987/2027 Y/4% 8,000,000

Agriculture and Rural Development: Tree CropRehabilitation (Tea) ...................................... June 1, 1978 1988/2028 3/4% 21,000,000

Agriculture and Rural Development: Tree CropDiversification (Tea) ............. .......... June 1, 1978 1988/2028 3/4% 4,500,000

SudanTransportation: Port Sudan .................. ........ March 23, 1978 1988/2028 /4 % 22,000,000Agriculture and Rural Development: Livestock Marketing ...... March 23, 1978 1988/2028 3/4% 25,000,000Agriculture and Rural Development: Third Mechanized Farming May 18, 1978 1988/2028 3/4 % 16,000,000Agriculture and Rural Development: Agricultural Research ..... June 29, 1978 1988/2028 3/4% 15,000,000

TanzaniaUrban Development: Second National Sites and Services ..... July 7,1977 1987/2027 3/4 % 12,000,000Transportation: Trucking Industry Rehabilitationand Improvement ........................................ October 4, 1977 1988/2027 3/4% 15,000,000

Agriculture and Rural Development: SecondCashewnut Development .................................. May 16, 1978 1988/2028 3/4% 27,500,000

Agriculture and Rural Development: Tobacco Handling ........ May 16, 1978 1988/2028 Y4% 14,000,000Agriculture and Rural Development: Mwanza andShinyanga Rural Development ......................... ... May 16, 1978 1988/2028 3/4% 12,000,000

Industry: Morogoro Textile .................. ......... June 29, 1978 1988/2028 3/4% 20,000,000ThailandPopulation and Nutrition: Family Planning and Health Care .... February 7, 1978 1988/2027 3/4% 33,100,000

TogoAgriculture and Rural Development: Rural Development inCotton Areas . ..................................... September 13, 1977 1988/2027 3/4% 14,000,000

Transportation: Feeder Roads ......... ............ ....... May 23, 1978 1988/2028 3% 5,800,000Upper VoltaTransportation: Regional Railway ........................... October 18, 1977 1988/2027 Y4 % 5,200,000Industrial Development and Finance: Artisan and Small- andMedium-scale Enterprises-Banque Nationale deDeveloppement(BND) ................................... December 22, 1977 1988/2027 Y4 % 4,000,000

Urban Development: Low-costServices and TechnicalAssistance January 31, 1978 1988/2027 3/4% 8,200,000Yemen Arab RepublicTransportation: Third Highway .................. .......... April 27, 1978 1988/2028 3/v% 11,500,000Agriculture and Rural Development: Second TihamaDevelopment (Wadi Rima) ..................... .......... May 18, 1978 1988/2028 3 % % 10,500,000

Industry: Textiles Rehabilitation.. .......................... June 27, 1978 1988/2028 Y/4% 7,000,000Yemen, People's Democratic Republic ofAgriculture and Rural Development: Wadi TubanAgricultural Development ................................ February 14, 1978 1988/2027 3/4% 5,200,000

Power: Wadi Hadramout Power .................. .......... June 13, 1978 1988/2028 3/4% 5,000,000Water Supply and Sewerage: Water Supply Engineering andTechnical Assistance ..................................... June 29, 1978 1981/1988 3A4% 1,200,000

ZaireAgriculture and Rural Development: Oil Palm Development .... May 2,1978 1988/2028 3A/%7 9,000,000

ZambiaTransportation: Third Highway ................. ...... .... May 11, 1978 1988/2028 /4 % 11,250,000

TOTAL of credits .$2,312,950,000

Bank/IDA Appendices

AppendixPage

1 Approved Bank and IDA Cumulative Lending Operations,by Major Purpose and Region, June 30, 1978 . ............ 176

2 Approved Bank and IDA Cumulative Lending Operations,by Country, June 30, 1978 .... ....... . 178

3 Administrative Budgets of the Bank and IDA . ......... . 180

4 Governors and Alternates of the Bank and IDA . ........... 181

5 Executive Directors and Alternates of the Bank and IDA ... 183

6 Officers and Department Directors of the Bank and IDA ..... 184

7 World Bank Offices .... ............. 185

176 Bank/lIDA Appendices

Approved Bank andIDA Cumulative Lending Operations,by Major Purpose and Region, June 30, 1978(US$ millions)

Bank loans to borrowers, by region(X)

Europe,Middle Latin East

East, and America AsiaEastern Western North and the and South

Purpose(2) Africa Africa Africa Caribbean Pacific Asia Total

AGRICULTURE AND RURAL DEVELOPMENTAgriculture sector loan ............ ..... 5.6 $ - $ 2.3 $ 22.7 $ 4.3 $ 26.3 $ 61.2Agricultural credit . .. ....... 5.0 3.5 680.5 286.4 96.0 - 1,071.4Area development . .. ..... 72.5 186.0 205.0 620.6 528.0 197.0 1,809.1Fisheries.. ....... .... - - 19.5 16.2 45.8 14.0 95.5Irrigation, flood control ....... .... 78.2 32.0 905.5 456.3 1,353.5 149.0 2,974.5Livestock.............. ............... 11.8 32.6 146.0 878.0 48.0 10.0 1,126.4Crop processing, storage.. - - 124.9 272.8 45.8 - 443.5Perennial crops . ............ 57.4 318.4 10.0 30.0 188.0 - 603.8Research and extension . ...- - 12.7 199.0 119.0 25.0 355.7Forestry ....... ............... ...... 48.5 - 111.0 - 8.5 - 168.0

Subtotal ...... ................. 279.0 572.5 2,217.4 2,782.0 2,436.9 421.3 8,709.1

EDUCATION ...... ............. 117.0 131.6 566.4 311.6 366.2 - 1,492.8ENERGY . ..... ....... 20.0 - 140.4 - - 229.2 389.6

INDUSTRIALDEVELOPMENTANDFINANCE 136.0 118.8 1,617.0 1,028.0 1,116.0 826.2 4,842.0

INDUSTRYFertilizer and chemicals ................ - - 120.3 246.0 185.0 231.0 782.3Engineering ........................... - - - 10.0 - 10.0Iron and steel ....... ...... .... - 283.5 564.0 - 189.0 1,036.5Industry sector loan ..................... - 0.6 606.4 97.5 243.4 - 947.9Coal . - - - 21.8 - 54.5 76.3Small industry ......................... - 60.0 131.0 - 34.8 - 225.8Mining, other extractive ............ .... 137.5 131.0 73.3 148.0 - - 489.8Pulp and paper ... . ........... - - 110.0 20.0 - 4.2 134.2Textiles .. ............... 63.0 - 102.0 - - 165.0

Subtotal ............................. 200.5 191.6 1,426.5 1,097.3 473.2 478.7 3,867.8

NONPROJECT ............... ........ 160.0 80.0 1,094.6(3i 116.5 483.5 - 1,934.6POPULATION AND NUTRITION .......... - - 16.5 60.8 67.5 - 144.8

POWER ........................ .... 688.0 338.0 1,937.2 4,153.0 1,791.0 447.7 9,354.9TECHNICAL ASSISTANCE ................ - - 4.3 24.3 13.0 - 41.6

TELECOMMUNICATIONS ............. .. 101.6 54.3 213.8 349.3 141.3 227.5 1,087.8

TOURISM ..... .......... .... 17.0 23.3 96.6 135.0 25.0 - 296.9

TRANSPORTATIONAirlines and airports .................. 49.0 3.0 7.0 99.5 9.2 5.6 173.3Highways ......................... 227.7 355.0 1,059.1 1,969.6 1,259.1 39.9 4,910.4Pipelines . .. ........... - - 57.5 23.3 - 37.0 117.8Ports and waterways ... ............... 84.9 172.3 738.8 204.6 411.3 109.8 1,721.7Railways ........................... 367.2 137.5 694.5 856.5 637.7 555.1 3,248.5Transportation sector loan ................ 28.0 25.0 12.0 30.0 - - 95.0

Subtotal .......... ........ ... 756.8 692.8 2,568.9 3,183.5 2,317.3 747.4 10,266.7

URBAN DEVELOPMENT .................. 61.0 44.0 71.0 214.0 175.1 25.0 590.1

WATER SUPPLY AND SEWERAGE. . ...... 102.6 72.5 663.9 649.4 201.1 - 1,689.5

TOTAL ............................. $2,639.5 $2,319.4 $12,634.5 $14,104.7 $9,607.1 $3,403.0 $44,708.2

(l) Except for the total shosvn in footnote 4, no account is taken of cancellations and refundings subsequent to original commitment; amounts of can-cellations and refundings are shown by country and purpose in the Statements of Loans and of Development Credits, which are available on request.Bank loans of $550 million to IFC are excluded. Due to rounding, totals may not agree with those shown in Appendix 2.

(2) Operations have been classified by the major purpose they finance. Many projects include activity in more than one sectcr or subsector.(3) Includes $497 million in European reconstruction loans made befnre 1952.4) Cancellations,terminations, and refundingstotal $1,591.6 million.Thisfigure includes $46 million ofloans and $176 million of credits madeto Pakistan

in earlier years for development projects in its former eastern wing, now Bangladesh. The loans and credits were reactivated, in revised form, ascommitments to Bangladesh.

Bank/lIDA Appendices 177

Appendix 1

IDA credits to borrowers, by regions')

Europe,Mlddle Latin East

East, and America AsiaEastern Western North and the and South Total

Africa Africa Africa Caribbean Pacific Asia Total Bank and IDA

$ - $ - $ - $ - $ 7.5 $ 71.0 $ 78.5 $ 139.734.6 26.4 96.2 18.5 53.7 815.1 1,044.5 2,115.9

281.4 181.5 32.2 29.0 34.5 248.0 806.6 2,615.715.0 1.3 7.1 - 10.0 21.5 54.9 150.4

159.9 94.4 295.2 18.5 121.2 939.0 1,628.2 4,602.7150.9 52.0 49.5 67.5 10.6 90.6 421.1 1,547.562.3 - 18.0 - - 287.7 368.0 811.598.8 92.1 15.0 - 121.8 76.5 404.2 1,008.015.0 - - - - 113.0 128.0 483.716.8 4.5 - - - 29.7 51.0 219.0

834.7 452.2 513.2 133.5 359.3 2,692.1 4,985.0 13,694.1

272.5 127.5 107.8 48.6 95.4 78.7 730.5 2,223.3

- - - - - - - 389.6

91.4 15.0 81.0 6.2 65.0 123.5 382.1 5,224.1

- - 21.4 - 35.0 367.0 423.4 1,205.7- - - - - - - 10.0

- - - - - - - 1,036.5_ - l18.7 - - - 18.7 966.6- - - - - - - 76.3

4.0 - 2.3 - 16.5 9.5 32.3 258.12.5 - - - - 16.0 18.5 508.32.0 - - - - - 2.0 136.2

20.0 - 7.0 - - - 27.0 192.0

28.5 - 49.4 - 51.5 392.5 521.9 4,389.7

15.0 - 35.0 4.0 - 2,031.6 2,085.6 4,020.2

12.0 - 14.6 - 46.3 36.2 109.1 253.9

76.8 34.3 55.9 66.3 111.0 851.0 1,195.3 10,550.2

14.5 18.7 - - 15.0 16.5 64.7 106.3

37.4 14.1 83.0 - 12.8 390.2 537.5 1,625.3

- 4.0 16.0 - 16.0 4.2 40.2 337.1

9.0 5.0 2.5 - - - 16.5 189.8494.6 334.1 98.0 128.3 107.4 124.9 1,287.3 6,197.7

_ - - - - - - 117.885.2 35.0 9.2 5.0 19.9 183.3 337.6 2,059.338.0 50.6 38.5 8.0 40.0 594.2 769.3 4,017.815.0 - - - - - 15.0 110.0

641.8 424.7 148.2 141.3 167.3 902.4 2,425.7 12,692.4

56.5 16.2 23.3 32.0 - 146.0 274.0 864.1

38.6 13.9 90.3 9.6 4.4 202.4 359.2 2,048.7

$2,119.7 $1,120.6 $1,217.7 $441.5 $944.0 $7,867.3 $13,710.8 $58,419.0'4)

178 Batnk/IDA A4ppendices

Approved Bank and IDA Cumulative LendingOperations, by Country, June 30, 1978

(US dollars) ~~~~~~~Bank Loans IDA Credits Total

Country Numbercl) Amount Numnber(") Amount Number ~ ~ Amount

Afghanistan ........... - $ - 16 $ 158,500,000 16 $ 158,500,000Algeria............. 18 803,000,000 - - 18 803,000,000Argentina ............ 14 1,017,300,000 - - 14 1,017,300,000Australia.. ........... 7 417,730,000 - - 7 417,730,000Austria .. ........ 9 106,336,429 - - 9 106.336,429Bahamas 1....... ... 10,000,000 - - 1 10,000,000Bangladesh(2) . ......... 1 46,189,500 45 916,094,965 46 962,284,465Belgium ....... ...... 4 76,000,000 - - 4 76,000,000Benin ...... ...... - - 9 67,800,000 9 67,800,000Bolivia .. ... ....... 13 249,250,000 10 69,300,000 23 318,550,000Botswana...... .... 8 92,300,000 6 15,750,000 14 108,050,000Brazil,............. 80 3,944,690,000 - - 81' 3,944,690,000Burma ~.... . ........ 3 33,350,000 10 164,000,000 13 197,350,000Burundi ....... .... ... 1 4,800,000 10 48,380,000 11 53,180,000Cameroon ...... ........ 18 207,800,000 13 169,450,000 31 377,250,000Caribbean Region .... ... . 1 20,000,000 - - 1 20,000,000Central African Empire........ 3 12,400,000 3 12,400,000Chad(a) ...... ........ - - 12 70,900,000 12 70,900,000Chile........ ......... 23 361,200,000 - 19,000,000 23 380,200,000China, Republic of... . ... 0. 4 329,400,000 4 15,300,000 18 344,700,000Colombia ............. 74 1,931,880,000 - 19,500,000 74 1,951.380,000Congo, People's Republic of the. .. 3 76,000,000 6 22,630,000 9 98,630,000Costa Rica....... ....... 23 289,200,000 - 5,500,000 23 294,700,000Cyprus ....... . ... 14 111,600,000 - - 14 111,600,000Denmark .. ... . 3 85,000,000 - - 3 85,000,000Dominican Republic........ . 5 64,000,000 3 22,000,000 8 86,000,000East African Community(" ... .... 10 244,800,000 - - 10 244,800,000Ecuador ....... ........ 21 241,000,000 5 36,900,000 26 278,000,000Egypt, Arab Republic of.... .... 16 731,000,000 16 434,075,000 32 1,165,075,000El Salvador .... . ....... 17 192,685,000 2 25,600,000 19 218,285,000Equatorial Guinea..... .. ... - - 1 2,000,000 1 2,000,000Ethiopia ....... ... .... 12 108,600,000 24 368,100,000 36 476,700,000Fiji ..... .......... 6 50,200,000 - - 6 50,200,000Finland .... .... .. 18 316,779,464 - - 18 316,779,464France .............. 1 250,000,000 - - 1 250,000,000Galbon(' ........ 6 69,300,000 - - 6 69,300,000Gambia, Tbe . ....- - 7 22,400,000 7 22,400,000GhanaWe ....... ...... 9 207,000,000 11 105,500,000 20 312,500,000Greece ...... ..... 16 465,800,000 - - 16 465,800,000Guatemala ........... 11 260,500,000 - -11 260,500,000Guinea .............. 3 75,200,000 2 21,000,000) 5 96,200,000Guyana .... ......... 7 41,450,000 3 23,500,000 10 64,950,000Haiti ......... ..... 1 2,600,000 9 93,450,000 10 96,050,000Honduras ... ......... 17 187,950,000 5 58,200,000 22 246,150,000Iceland. 10 47,014,000 - - 10 47,014,000India .. .... ..... 55 2,345,610,000 101 5,558,200,000 156 7,903,810,000Indonesia ............. 35 1,772,000,000 40 631,800,000 75 2,403,800,000Iran .... ... .... 33 1,210,700,000 - - 33 1,210,700,000Iraq ............... 6 156,200,000 - - 6 156,200,000Ireland .............. 8 152,500,000 - - 8 152,500,000Israel ..... ..... .. 11 284,500,000 - - 11 284,500,000Italy .......... .... 8 399,628,000 - - 8 399,628,000Ivory Coast(6(7 .. 26 462,775,000 1 7,500,000 27 470,275,000Jamaica.............. 19 233,000,000 - - 19 233,000,000Japan ....... ......... 31 862,900,000 - - 31 862,900,000Jordan ....... ........ - - 15 85,300,000 15 85,300,000Kenya ... ... ........ 28 508,300,000 17 246,300,000 45 754,600,000Korea, Republic of........... 39 2,007,500,000 6 110,800,000 45 2,118,300,000Lao People's Democratic Republic .. - - 1 8,200,000 1 8,200,000Lebanion....... ........ 4 116,600,000 - - 4 116,600,000Lesotho...... .-..... 7 35,200,000 7 35,200,000Liberia....., ....... . 17 108,250,000 4 30,000,000 21 138,250,000Luxembourg ...... ... 1 12,000,000 - 1 12,000,000Madagascar ........ 5 32,850,000 9 158,150,000 14 191,000,000Malawi ............ 2 26,200,000 17 133,390,000 19 159,590,000Malaysia ..... - 41 950,600,000 - - 41 950,600,000Mali(3)(7) . .... ....... - 1,875,000 14 144,200,000 14 146,075,000

Ban?k/IDA Appenidices 179

Appendix 2

Bank Loans IDA Credrts Total

Country Number 'i Amount tNumTber, Amouiit Number Amocurt

Malta . ,1 $ 7,500,000 - S - 1 $ 7,500.000Mauritania(30 1 66,000,000 9 38,450.000 10 104,450.000Mauritius .9 74,300,000 4 20.200,000 13 94,500.000Mexico . . . 54 3,261,600,000 - - 54 3,261.600,000Morocco. 32 884,300,000 3 50,800,000 35 935,100,000Nepal.. . - 17 162,900,000 17 162,900,000Netherlands ... 8 244,000,000 - - 8 244,000,000New Zealand. 6 126,800,000 - -6 126,800,000Nicaragua .23 163,850,000 2 23,000,000 25 186,850,000Nigeria3. . - 10 63,104,000 10 63,104,000Nigeria . .. 31 912.400,000 2 35,500,000 33 947,900,000Norway 6 145.000,000 - - 6 145,000,000Oman .4 24,950,000 - - 4 24,950.000Pakistan0%.. 38 883,860,500 37 915,913,035 75 1,799,773.535Panama . .. . . ... 16 224,190,000 - - 16 224,190,000Papua New Guinea. 7 71,000,000 6 48,200,000 13 119,200,000Paraguay, 14 129,850,000 6 45,500,000 20 175,350,000Peru . 33 573,125,000 - - 33 573,125,000Philippines .. 54 1,644,400,000 2 60.200,000 56 1.704,600,000Portugal 11 298,500,000 - - 11 298,500.000Rhodesia09 5 86,950,000 - -5 86,950,000Romania .17 882,800,000 - - 17 882,800,000Rwanda - 10 74.700,000 10 74,700.000Senegali3io7. 14 92,025,000 17 120,850,000 31 212.875,000Sierra Leone 4 18,700,000 4 31,250,000 8 49,950,000Singapore 14 181,300,000 - - 14 181,300.000Somalia .- 16 105,100,000 16 105,100,000South Attica 11 241,800,000 - - 11 241,800,000Spain .12 478,700,000 - - 12 478,700.000Sri Lanka . . 93,910,000 13 150,100,000 21 244,010.000Sudan . . . 8 166,000,000 17 296,450,000 25 462,450.000Swaziland . . 7 30,450,000 2 7,800,000 9 38,250,000Syrian Arab Republic 10 417,100,000 3 47,300,000 13 464,400,000Tanzania .15 252,200,000 31 352,700,000 46 604,900,000Thailand . 44 1,193,250,000 4 85,100,000 48 1,258,350,000TogolO . 1 20,000,000 7 57,700,000 8 77,700,000Trinidad and Tobago. . 12 104,800,000 - - 12 104,800,000Tunisia . .31 479,850,000 5 74,600,000 36 554,450,000Turkey . 37 1,494,900,000 10 178,500,000 47 1.~673,400,000Uganda 1 8,400,000 7 44,300,000 8 52,700,000Upper Volta(30t5 - 1,875,000 14 97,600.000 14 99,475,000Uruguay .. . 14 216,900,000 - - 14 216,900,000Venezujela .13 383,300,000 - - 13 383,300,000Western Samoa . ..- 1 4,400,000 1 4,400,000Yemen Arab Republic ..-- 18 138,750,000 16 138,750,000Yemen, People's DemocraticRepublic ot .... . - 10 49,760,000 10 49,760,000

Yuigoslavia . . 48 1,952,100,000 - - 48 1,952,100,000Zaire . 6 220,000,000 16 201,500,000 22 421,500,000Zambia,9 22 541,500,000 - 11,250,000 22 552,750,000TOTAL. .. 1,589 $44,707,427,893 765 $13,709,747,000 2,354 $58,417,174,893

1)Joint Bank lOut operatioris are cou.ntedl only once, as Bunk operaraions When more thani one loan is miade tar a single project, they are countsedonly onice.I ircluides $175,826,965 in I DA aniount and 19 IDA credits, o,h.ch retpiace commitments originally macle to Pakistani. Also includes $46,1895,590 in Banikamount and I Banik loan, which replace comnmitments originally made ta Pak stan.

5.One `IDA project, in fiscal year 1974, for Drounht Belief, is shared by toe followingcountries: Cnad-S2 million; Mali-$2 5 million; Maurital a-$2.5 million; Niger-$2 m Ilon, Senogal-$3 million; Upyer Volta-$2 mIllion Toe amnounts are includeo in eachi country's total. but the operarioiiIs cocnted only onice, against Senegal.

SJointly guaranteed by lKeniya Tanzania, anld Uganda.~.One Baiik loan of $35 million in fiscal soar 1959, s l0 ntly guaranteed by~ Congo (People's Repruotic of the). France, and Gaboii.One Bank projoct at $60 million in fiscal year 1976, nan neon assigned .n equal snores to Ghatna. ivory Coast. aird Togo, but the opneratioin is couiiteoionly once, against Togo. Of the $60 ni.ll,oii, an amnount of $49.5 milljii Nas lent to Cimorens do l'Afrique do I'Ouest ClIMAO) and is join~tly guaranteedby the three countries.Ore Bank loon of $7.5 million, in fiscal year 1954, is shared in amounts of $1,975 mi lion each by Ivory Coast, Mali, Senegal, and Ulipper Volta, bot theoyeration .s counted against ivory Coast. One Bank loan of $23 million in fiscal year 1979 s guaranteed by I vary Coast and Lisper Volta, but is countedtan ann operation, against Ivory Coast.Eix6cludes $175,926,965 in ISA amount and 19 IDA credits, eahich 'worn replaced by commTitments made to Bangladesh. Also eocludes $46.189,506 IinBank amount and 1 Bank loon, which were replaced by commitments made to Baiiladnsh.

iiTwo Bank lnoans-ot 199 million, in fiscal year t956, and $7.7 million, in fiscal ynar 1965. rospectively-have keen assigned in equ0l shares In Rhodesiaano Zambia, hut are counted only onco, aga not Rhodesia.

18f) Bink/lIDA Appendices

Administrative Budgets Appendix 3of the Bank and IDAFor the fiscal year ending June 30, 1979

Actual expenses Budget1978 1979

(Thousands of US dollars)

BY ORGANIZATION UNIT

Board of Governors .. . .... . ...... . 1,143 1,373Development Committee . . . ..... ...... 330Q') 466(l)Executive Directors ._...... . ..... . ...... 6,289 7,774Executive Offices .. .... . .. .... . 1,106 1,175Regional Offices ....... .... . .. ... .... ..... 114,532 128,008Central Projects Staff ...... . .......... ... 30,811 35,653Cooperative Programs-FAO, Unesco, WHO, and UNIDO. 7,052 7,599Development Policy Staff . . ..... ..... . 22,399 24,427Financial Staff .......... . .. 15,680 18,323Operations Evaluation Staff . . .. . ... 1,998 2,355Legal, ICSI D, and Secretary's . . .. .. 5,852 6,540External Relations ... ..... .... 5,187 6,229Economic Development Institute . . ... .. 6,055 7,277Administration, Organization, Personnel Management ..... 25,482 28,396European and Tokyo Offices ...... . .. .. 2,662 2,887Grants for consultants to member countries . . ............ 108 64Consultative Group on International Agricultural Research. 628 702Consultative Group on Food Production and Investment . . 115(2) -

Reimbursable Technical Assistance . . .......... 3,496 5,540Contingency allowance ..... .... .. .. ... - 2,376TOTAL .. ... .... ..... 250,925 287,164

Less: Reimbursements ................. ....... -8,730 -11,467IFC service and support fee .. .... .-...... 2,158 -2,197

TOTAL IBRD/IDA ......... ..... .. ... . 240,037 273,500

BY EXPENSE CATEGORYPersonal services .... 163,639 186,836Operational travel . . . ... . .. 27,575 29,328Representation ... .. .. ...... 755 740Consultants .... ..... .. . .. .. . 16,507(3) 20,078(3)Contractual services ... ... 7,058 7,929Overhead expenses:Other travel .... ...... .... 8,894 11,125Office occupancy . . .. . . .. . 12,159 13,588Communications ..... ........ ... .. . 5,547 5,855Other expenses .. .. .... . . ..... ... 8,791 9,309

Contingency ...-..... . .. . ..-.... 2,376TOTAL .. .............. .. . .... ... ... 250,925 287,164

Less: Reimbursements ........... ... ..... .. -8,730 -11,467IFC service and support fee ... .... . -2,158 -2,197t4f

TOTAL IBRD/IDA 2.......... .. . .. 40,037 273,500

Of which: IBRD ..... ... ........ .... 148,126 162,483IDA ... ..... . ... .. ...... 91,911 111,017

Note: The Administrative Budgets for the fiscal year ending June 30, 1979, were approved by the ExecutiveDirectors in accordance with the By-Laws of the Bank and IDA. For purposes of comparison, the adminis-trative expenses incurred during the fiscal year ended June 30, 1978,are also shnown.

(1) This figure represents the Bank's share (approximately 50%) of the cost of the Committee.a2) This figure represents the Bank's share (one-third) of the cost of the Secretariat.

(3) The figures shown include the costs of the Cooperative Programs.0) In fiscal 1979, general assistance rendered by the Bank to IFC will be paid for by a service and support

fee, which has been established for the year at $2,197,000.

Bank/IDA Appendices 181

Governors and Alternates Appendix 4of the Bank and IDAJune 30, 1978

Member Governor Alterinate

Afghanistan .... .... .. . . Abdul Karim Meesaqh........ Mehrabudin PaktiawallAlgeria.... .... .. .... Mohammed Seddik Benyahia... ....... Rachid HassamArgentina . . .... ... .. .. Jos6 Alfredo Martinez de Hoz ........... Adolfo C. DizAustralia . .......... .I .J. W. Howard ... ........ . . . J. C. IngramAustria .................... Hannes And rosch ..... ..... .. Walter NeudbrferBahamas(') ................. Arthur D. Hanna .. ..... ....... Reginald L. WoodBahrain('K. .... .... . _.....Ibrahim Abdul Karim ........... ... Isa Abdullah BurshaidBangladesh .... ..... ... . . N. Huda. .. ... ... .. .S. A. KhairBarbados(') ....... I ..... .. . . M.~ G. M. Adams................Stephen E. EmtageBelgium ..... ............. Gaston Geens...... ....... . Cecil de StryckerBenin ............... Frani;ois Dossou. ..... . ..... .. Abou Baba-MoussaBolivia ................... David Blanco Zabala............... Manuel Mercado MonteroBotswana .. .... .... ...... Q. K. J. Masire . ..... ..... . Baledzi GaolatheBrazil .. _ _.. .... .. M5rio Henrique Simonsen .......... Paulo H. Pereira LiraBurma. ... .. .. ... .. U Tun Tin. . ........ . U Myo MyintBurundi ..... ............. Dominique Shiramanga .... ........ Jean NdimurukundoCambodia .... . .. ... I. (vacant)........I....... . (vacant)Cameroon . .. . . ...... Youssouffa Daouda ...... ....... Amadou BelloCanada.......Jean Chr6tien ...... ... . . Michel DupuyCentral African Empire ........ .. Andr-6 Dieudlonn6 Magale............ Marc Babel BedanChad ... .. .... . I. Ahmed Kerim Tngot ........ .. Blayo NgartandoChile.. .... .. ..... Sergio de Castro Spikula ..... .... .Sergio Undurraga SaavedraChina, Republic of ... ........ Philip C. C. Chang ....... ... Chun-Heng ToColombia .... .... ... Alfonso Palaclo Rudas. . . Germ5n Botero de los RiosComoros. ........... - Said Kafe .. Si Mohamed Nacr-ed-DineCongo, People's Republic of the ~.......I. .. FranQois Bita ............. . Andr6 BatangaCosta Rica .... ..... . ... Federico Vargas Peralta. . ... Porfirio PVAorera BatresCyprus ........... .. I....Andreas C. Patsalides.......... A. C. AfxentiouDenmark ........ ............ K. B. Andersen . .Lise OstergaardDominican Republic..............Fernando Periche Vidal ...... LoIis M. Guerrero GdmezEcuador. .~..... .... . .. Joan Reyna Drouet Santacruz....... Alfonso Arcos V.Egypt, Arab Republic of ..... .... Hamed Abdel Latif El Sayeh(2' . . Samir Koraiemrn'2El Salvador .... . .. ..... .. Roberto Ortiz Avalos .......... Eduardo ReyesEquatorial Guinea......... ... Ondo Mafe Ondo Avang ... . .. .(vacant)Ethiopia .. ..... Teterra Wolde-Semait ........... Astaw DamteFiji..ll .. ...... .. .... C. A. Stinson... Savenaca SiwatibauFinland .... .... ..... . Esko Rekola . ...... . ...... Osmo KallialaFrance. .......... .. ..... Bernard Clappier . . Marcel Th6ronGabon ...... .. ..... ... .. Michel Anchouey . . . .J. F6im MamalepotGambia, The .. ..... ... ... Assan MuLsa Camara......... T. C. G. SenghoreGermany, Federal Republic of . .I. II Hans Matthoefer ...... . .. ..... Rainer OffergeldGbana .................... Anthony Kwesi Appiahb..... . ..... K. Anane-BinfohGreece ..... ............. Constantine MAitsotakis. .... .. ... Stavros DimasGrenada. .... .. . ..... George F. Hosten . .. ......... Franklin U. DollandGuatemala. . ... ....... .. .. Ramiro Ponce Monroy Jorge Lamport RodilGuinea . ................ Momory Camara... . .Satkou BarryGuinea-Bissau ......... ........ Victor Freire Monteiro .............. Jos6 Lima BarberGuyana .. .. .. .. ... .... F. E. Hope ... .... . ......... Harold E. WilkinsonHaiti ............. . .... Emmanuel Bros ...... . . . Antonio Andr6HondLuras . _ ... . .. ...... Porfirio Zavala Sandoval ....... .(vacant)Iceland . ... U... lafur Johannesson........ ...... Matthias A. MathiesenIndia .... ..... . . H. MA. Patel... .Manmohan SinghIndonesia .................. Rachmat Saleh. ......... . Julianto MoeliodihardjoIran .......... Mohammed Yeganeh ...... .. ... Jahangir AmuzegarIraq ... ....... ... .. Fawzi El-Kaissi . ... ... . . . (vacant)Ireland ............. ...... George Colley ..... . ... .. .Tom~s F. U CofaighIsrael . .... ........... Arnon Gatny ................ . Amiram SlvanItaly ............ ........ Paulo Baffi,. ....... . . Felice RuggieroIvory Coast.................. Abdoulaye Kon6 . . .L.....ion NakaJamaica0;................... Eric Bell .... _. ..... . . . Richard FletcherJapan .................... Tatsuo Murayama..... . . Ticiro MorinagaJordan ....... ...... .. Hanna Udeh... ... Hashim A. DabbasKenya. ...... ........... wai Kibaki ....... . ....... Leonard U. KibingeKorea, Republic of. ~.... ...... Yong Hwan Kim.. ........ . Byong Hyun ShinKuwait ....... ............. Abdul Rahman Salim AI-Ateeqy. . Abdlatif Y. Al-HamadLao People's Democratic Republic ........ Bousbong Souvannavong ............. Pheng Uplavan

(1) Memnber of the Back onely, (contnued)(1) Appoiitmnent effective after June 30, 1970.

182 Bunfk/IDA Appenidices

Governors and Alternates Appendix 4of the Bank and IDA c~ontinued~

Jicoe 30. 1978

Mebe~ oeGove riior Al terroate,

Lebanon.................. . Khattar Chibli ..... .... Sabah Al -Ha.Lesotho ......... _... ... E. R. Sekhonyana.. A. [M. MonyakeLiberia .... ... ...... .. . James T. Phillips, Jr.. ... D. Franklin NealLibya........ .......... . Mohammad Zarrough Ragab ....... .. Abdulla A. SaudiLuxembourg. . . .... .... Jacques F. Poos.. Raymond KirschMadagascar . ..... . . . Rakotovao Razakaboana. ..... .... Rajaona AndriamananJaraMalawi ....... ..... . . . D. T. Matenje. Alfred A. UpindiMalaysia......Tengku Razaleigh Hamzah .... .. Albdullar din AyobMaldives . ............ . Amir Abdul Sattar ....... ..... Ahmed SaleemMali. . ..... .. . .... Ahbned Mohamed Ag Hamani..... .. Ti6ooxta Kon6Mauritania .... ..... ... AbdoLxlaye Baro ......... . Moustapha Quid AbeidarrahmaneMauiritius ................. Rabindrah Gburburrun. .~~..... ... Devarajen SoopramanienMexico .. . ........... .. David ibarra Muiioz. ............ Jorge Espinosa de los ReyesMorocco ......... .. ... .. Abdellatif Ghissassi .......... .. Mustapha FanisNepal.. ... ....... . Bhekh B. Thapa .............. Narakant AdhikaryNetherlands........... . .. F. H. J. J. Anoriessen............J. de iKoningNew Zealand ............ N. V. Lough ...... . ..... C. H. TerryNicaragua .. ............... Guillermo Sevilla-Sacasa........... Rdger Blandtn Vel6squezNiger .. ..... ...... Mai Mai-Gana. ...... ..... Mahamnane AnnouNigeria ..... .... ....... J. J. Oiuleye. .. , ........ Muisa BelloNormay..... ...... Per Kieppe ............. Hallvard BakkeOman .. .. ....... .,...... Qais A. Zawami ............... Sherif LotfyPakistan .. _.. .. ... .(vacant). .. ..... ........ A. G. N. KaziPanama .. .. ... . ...... Nicoigs Ardito Barletta ........... Luis M. Adames P.Papua New Guinea ....... ..... Barry Blyth Holloway ............ Mekere MorautaParaguay.. ............ .. C6sar Romeo Acosta ............. Augusto Gui m5n V.Peru_. .. . ........... Javier Silva Ruete..............Roberto Cornejo KlashenPhilippines................. Cesar E. A. Virata ............. Placido Mdapa, Jr.Portugal('~.......... ..... Vitor Manuel Ribeiro Constynci ........ Herlander dos Santos EstrelaQatar(') ..... .. ............ Abdul Aziz Al-Thani ............. Madhat Aboul Latif MasonRomaniat '1 . . ... ...... Florea Dumitrescu. .... ..... Gheorghe PopescuRwanda..... ... ..... ....... Denis Ntirugirimnbabazi .... ...... Jean-Damascene MunyarukikoSao Tome and Principe... ..... . Miguel Anjos Trovoada ... ...... Victor Mianuel Lopes CorreiaSaudi Arabia ....... .... .. . Mohamed Abalkhai' . .......... Khalid Al GosaibiSenegal. .... ............. Louis Alexandrenne. ............ Serigne Lamine DiopSierra Leone ...... ..... ..... A. B. Kamara ... ........ B. M. Strasser- KingSingapore('.,, ....."....... Hon Sui Sen ..... _.........Home Yoon ChongSomalia ................. ,Mohamud Yusuf Weyrah. . ....... Omar Ahmed OinerSooth Africa ... .... ...... .T. W. de Jongh. .. ......... G. P. C. de KochSpain ................... Francisco Fern6ndez Ordohez ......... Jos6 Ram6n Alvarez RenduelesSri Lanka ............. ,Ronnie de Mel ... ..... .. .. W. M. TilakaratnaSudan ....... ..... ... Nasr Eldin Mustafa ......... Abdel Rahman Abdel-WahabSuriname('~ . .II..I..........(vacant). .. . .. ..... (vacant)Swaziland .. .............. James Nxumalo. ..... ..... V. F. SikhondzeSweden . . .... O.. . .... ... bsta Bohman. ....... ..... Ola UI stenSyrian Arab Republic..... .. ....... Sadek Ayoubi . ........... Abdul Hadi NehlawiTanzania .... .. ............ E. I. M. Mtei ............. .. E. A. MLilokoziThailand....... ........... . Suphat Sutatum.... ...... Chanchai LeetavornTogo. ...... .............. Koudjolou Dogo ...... ....... Napa KakayeTrinidad and Tobago...... ... ...... Eric Williams ................ F. BarsottiTunisia ... .... ..... Mustapha Zaanouni.............Rachid SfarTurkey ............ .Ziya Mdezzinoglu .............. Vural GdgsavasUganda......_ . ........ M~oses All ....... ......... Jino GermaUnited Arab Emiratest1 .... . . ... Hamdan Bin Rashid Al Maktoom .... ... Ahmed Humaid Al-TayerUnited Kingdom ... Gordon Richardson ...... ..... Sir Douglas WassUnited States. ..... ..... .... W. Michael Blumenthal .......... Richard N. CooperUpper Volta ... ... ..... ... Patrice Ouattara .............. Pierre TahitaUruguayt" ..... ...I .I.. ... Valentin Arismendi. '..Juan Jos6 AnichiniVenezuela('t ... .. . L.. . .. . orenzo Azpur6a Marturet... ..... HVctor HurtadoViet Nam ... ... .... ...... Tran Duong.................Mai Huu IchWestern Samoa ........ _ ....... Vaovasamnanaia R. P. Phillips.. ....... Malaya luiai TomaYemen Arab Republic...... ......... Mohamed Salem Basendwah.........Ali AI-BaharYemen, People's Democratic Republic of ...... Abdul-Aziz Abdul-Wali...... .... Farag Bin GhanemYugoslavia ........ ........ ... Petar Kostit2) ............... Miodrag Stojiljkovi6Zaire. ....... .... _........Emony Mondanga .............. Anal B. ldzumbuirZambia ........ ......-..... John M. Mwanakatme.L.~.... loyd C. Sichilongo

()Member of the Bank only.n~ Appointment effective ofter June 30, 1078.

Banki/lDA Appendices 183

Executive Directors and Alternates Appendix 5of the Bank and IDAtune 30. 1978

Total votes

Executive Director Alternate Casting votes of Bank IDA

AppointedEdward R. Fried ........... William P. Dixon .. .... ... United States ... . .......... ........... ... 68,130 675,282William S. Ryrie ...... Ronald F. R. Deare ......... United Kingdom ......... ..... ........ 26,250 263,397Hans Janssen(') ....... Hans-Dieter Hanfland . Germany (Federal Republic of) . .. .... ..... 13,903 236,831Jacques Henri Wahl .i. ... Pierre-Henri Cassou ........ France .................... ................. 13,042 138,669Susumu Murayama ......... Fumiya Iwasaki ......... Japan .. 10,480 201,476

ElectedEarl G. Drake ...... .. Edward M. Agostini ...... BahamasS'2) Barbados,12 1 Canada, Grenada, Guyana,

(Canada) (Guyana) Ireland, Jamaica(2: ... . . . 14,820 162,585Giorgio Rota . ..... Miguel Martin-Fern5ndez ... Italy, Portugal'2i, Spain ..................... 13,446 99,656

(Italy) (Spain)Anthony IJ. A. Looijen... Gavra D. Popovi6i3, .... Cyprus, Israel, Netherlands, Romania(2), Yugoslavia 13,114 92,197

(Netherlands) (Yugoslavia)M. Narasimham. . M. Syeduz-Zaman ......... Bangladesh, India, Sri Lanka .......... 11,644 157,319

(India) (Bangladesh)Einar Magnussen Valgeir Arsaelsson ..... Denmark, Finland, Iceland, Norway, Sweden . 10,990 183,743

(Norway) (Iceland)Jacques de Groote . Tun; Bilget... . .Austria, Belgium, Luxembourg, Turkey. 10,727 80,466

(Belgium) (Turkey)Thavil Khutrakul . .... ... Bharat B. Pradhan . Burma, Fiji, Indonesia, Korea (Republic of),

(Thailand) (Nepal) Lao People's Democratic Republic, Malaysia, Nepal,Singapore,(2) Thailand, Viet Nam ........ ......... 10,463 115,138

Said E. El-Naggar ..... Saleh A. Al-Hegelan .. Bahrain,(2) Egypt (Arab Republic of), Iraq, Jordan(Arab Republic of Egypt) (Saudi Arabia) Kuwait, Lebanon, Pakistan, Qatar,(21 Saudi Arabia,

Syrian Arab Republic, United Arab Emirates,(2)Yemen Arab Republic ...... . .... 10,123 157,152

Timothy T. Thahane ...... .A. H. Madinga ......... Botswana, Burundi, Equatorial Guinea, Ethiopia,(Lesotho) (Malawi) The Gambia, Guinea, Kenya, Lesotho, Liberia,

Malawi, Nigeria, Sierra Leone, Sudan, Swaziland,Tanzania, Trinidad and Tobago, Uganda, Zambia .... 9,766 116,361

Yahia Khelif .. .... . . Kwaku Gyasi-Twum ....... Afghanistan, Algeria, Ghana, Greece, Iran, Libya,(Algeria) (Ghana) Morocco, Oman, Tunisia, Yemen (People's

Democratic Republic of) .......... ... 8,800 109,689R. A. Johnston .......... Gerald S. Aburn .Australia, New Zealand, Papua New Guinea,

(Australia) (New Zealand) Western Samoa ................ ....... ....... . 8,620 77.474Ernesto Franco-Holguin ...... Ram6n Martinez-Aponte. Brazil, Colombia, Dominican Republic, Ecuador,

(Colombia) (Dominican Republic) Philippines . ......... ........... . ... 8,416 103,996Eduardo Pesqueira Oscar G. Espinosa . Costa Rica, El Salvador, Guatemala, Haiti, Honduras,

(Mexico) (Peru) Mexico, Nicaragua, Panama, Peru, Venezuela(2 1 . . . 8,343 58,339Armand Razafindrabe . (vacant). ...... ... Benin, Cameroon, Central African Empire, Chad,

(Madagascar) Congo (People's Republic of the), Gabon, Ivory Coast,Madagascar, Mali, Mauritania, Mauritius, Niger,Rwanda, Senegal, Somalia, Togo, Upper Volta, Zaire . 8,276 117,498

Julio C. Guti6rrez ..... Eduardo R. Conesa. Argentina, Bolivia, Chile, Paraguay, Uruguayt2 .....i 7,575 56,447(Paraguay) (Argentina)

In addition to the Executive Directors and Alternates shown in the foregoing list, the following also served after June 30, 1977:Executive Director End of period of service Alternate Director End of period ofservice

S. R. Sen February 28, 1978 Md. Matiul Islam July 19, 1977(India) (Bangladesh)

Rene-Paul Rigaud August 24, 1977(France)

Hal F. Reynolds September 30, 1977(United States)

Eduardo A. McCullough October 31, 1977(Panama)

German Calvillo November 1,1977(Spain)

Note: Cambodia {464 votes in IBRD and 7,826 votes in IDA), Republic of China (7.750 votes in IBRD and 91,311 votes in IDA), and South Africa (2,980votes in IBRD and 12,445 votes in IDA) did not participate in the 1976 Regular Election of Executive Directors. Comoros (266 votes in IBRD and 5,774votes in IDA), Guinea-Bissau (277 votes in IBRD and 528 votes in IDA), Maldives(256 votes in IBRD and 7,382 votes in IDA), Sao Tome and Principe(264 votes in BRD and 514 votes in lDA,oand Surinamer) (412 votes in IBRD) became members after that Election.

(e) Has resigned effective August 13, 1978; to be succeeded by Eberhard Kurth.i2) Member of the Bank only.

,5) Has resigned effective July 31, 1978; to be succeeded by Miodrag StojiljkoviE.

184 Bank/lIDA Appendices

Officers and Department Directors Appendix 6of the Bank and IDAJuly 1, 1978

President ............. _ _ . ........................................................ Robert S . M cN am araSenior Vice President, Finance ...................................... 1. P. M. CargillVice President, Projects Staff .... ............................................. ........ W arren C. BaumRegional Vice President, Europe, Middle East, and North Africa .......... Munir P. BenjenkVice President and General Counsel ................................................... A. BrochesVice President, Administration, Organization, Personnel Management .... ...... Bernard ChadenetRegional Vice President, Western Africa ......... ............... ...................... Roger ChaufournierVice President, Development Policy .. Hollis B. CheneryVice President, External Relations .Willia ................................................. Wi llam D. ClarkVice President and Secretary ............ ............................................ P. N. DamryRegional Vice President, South Asia.. ................................................. W. David HopperRegional Vice President, East Asia and Pacific ..................... S. S. HusainRegional Vice President, Latin America and the Caribbean .......... ..................... Adalbert KriegerVice President and Treasurer ................................................. ... Eugene H. RotbergVice President, Operations ................... ........... .... Ernest SternRegional Vice President, Eastern Africa ................ ............................... Willi A. WapenhansDirector-General, Operations Evaluation ................................. Mervyn L. WeinerDirector, Programming and Budgeting Department ......... ........................ K. Georg GabrielController .... ..................................................... Masaya Hattori

Director, Projects Department, Eastern Africa .......................................... Hans A. AdlerDirector, Resident Staff, Indonesia. ............................. Jean BanethDirector, Country Programs Department II, Europe, Middle East, and North Africa .......... Maurice P. BartDirector, Country Programs Department, South Asia .................................. Manfred G. BlobelDirector, International Relations Department ........................................... Shirley BoskeyDirector, Personnel Department .............. R. A. ClarkeDirector, Country Programs Department 11, Western Africa ...................... ........ F. X. de la RenaudiereDirector, Development Research Center .............. John H. DuloyDirector, Economic Development Institute............. .Raymond M. FrostDirector, Industrial Projects Department ........ . ............................... Hans FuchsDirector, Industrial Development and Finance Department ....... . ............. ........ David L. GordonDirector, Country Programs Department 11, Eastern Africa........ ...... Andre GueDirector, Education Department ................... ............................... Aklilu HabteDirector, Policy Planning and Program Review Department ............... .......... .... Mahbub ul HaqDirector, Economic Analysis and Projections Department ........ Helen HughesDirector, Urban Projects Department .................................................. Edward V. K. JaycoxDirector, Population Projects Department ........ K. KanagaratnamDirector, Operations Evaluation Department ........ Shiv S. KapurDirector, Development Policy .......... _... ......................................... Attila KaraosmanogluDirector, Organization Planning Department ................................. James M. KearnsDirector, Development Economics Department ................................. Benjamin B. KingDirector, Projects Department, East Asia and Pacific ................................. Syed Salar KirmaniDirector, Projects Department, Europe, Middle East, and North Africa ........... ......... A. David KnoxDirector, Country Programs Department 1, Latin America and the Caribbean ....... ........ Eugenio LariEnvironmental and Health Adviser, Office of Environmental and Health Affairs .............. James A. LeeExecutive Secretary, Consultative Group on International Agricultural Research.. . ......... Michael L. LejeuneDirector, Country Programs Department 11, Latin America and the Caribbean ............... Enrique LerdauDirector, Tokyo Office ....... ............. ............. Tarao MaedaDirector, Information and Public Affairs Department ................................. John E. MerriamDirector, Computing Activities Department ................... . ................... Mervin E. MullerAssociate General Counsel ...... ..................................................... Lester NurickDirector, Country Programs Department I, Europe, Middle East, and North Africa. Martijn J. W. M. PaijmansDirector, Projects Department, South Asia. Robert PicciottoDirector, Country Programs Department, East Asia and Pacific .Stanley PleaseDirector, Internal Auditing Department ...... ................... ..................... Lawrence N. RapleyDirector, Energy, Water, and Telecommunications Department .Yves RovaniDirector, European Office .Rainer B. SteckhanDirector, Projects Department, Western Africa .......................................... Wilfried P. ThalwitzDirector, Tourism Projects Department .................... ........................... Stokes M. TolbertDirector, Administrative Services Department .......................................... James E. Twining, Jr.Director, Projects Department, Latin America and the Caribbean .Suitbertus M. L. van der MeerDirector, Projects Advisory Staff ...................... ............................... H erman G. van der TakDirector, Country Programs Department 1, Eastern Africa. Michael H. WiehenDirector, Transportation Department ......... ........................................ Christopher R. WilloughbyDirector, Agriculture and Rural Development Department ................................ Montague YudelmanDirector, Country Programs Department 1, Western Africa ............ To be appointed

Bank/liDA Appendices 185

World Bank Offices Appendix 7

July 1, 1978

Headquarters: 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.New York Office Julian P. Grenfell, United Nations

Special Representative for Room 2435, Secretariat BuildingUnited Nations Organizations New York, N.Y. 10017, U.S.A.

European Office Rainer B. Steckhan, 66, avenue d'lenaDirector 75116 Paris, France

London OfficeNew Zealand HouseHaymarketLondon, SWI Y4TE, England

Tokyo Office Tarao Maeda, Kokusai BuildingDirector 1-1 Marunouchi 3-chome

Chiyoda-ku, Tokyo 100, JapanRegional Mission John D. North, Extelcoms House

in Eastern Africa Director Haile Selassie AvenueNairobi, Kenya

(mailing address: P.O. Box 30577)Regional Mission Paul Geli, Immeuble Shell

in Western Africa Chief 64, avenue LamblinAbidjan, Ivory Coast

(mailing address: B.P. 1850)Regional Mission Hendrik van der Heijden, Udom Vidhya Building

in Thailand Chief 956 Rama IV RoadSala DaengBangkok 5, Thailand

Afghanistan James L. Theodores, World Bank Resident MissionResident Representative P.O. Box 211

Kabul, AfghanistanBangladesh Alexander Storrar, World Bank Resident Mission

Chief Bangladesh Bank Building (4th Floor)Motijheel Commercial AreaG.P.O. Box 97Dacca, Bangladesh

Bolivia Rolando Arrivillaga, World Bank Resident MissionResident Representative (Banco Mundial)

Edificio Banco Nacional de Bolivia40 PisoAvenida Camacho esq Calle Col6nLa Paz, Bolivia

Cameroon Raymond Rabeharisoa, World Bank Resident MissionResident Representative Immeuble Concorde

angle avenue El Hadj Ahmadou Ahidjoet avenue J. F. Kennedy

Yaounde, Cameroon(mailing address: B.P. 1128)

Colombia Ian A. Scott, World Bank Resident MissionResident Representative Edificio "Aseguradora del Valle"

Carrera 10 No. 24-55, Piso 17Bogota D.E., Colombia

(mailing address: Banco Mundial,Apartado Aereo 10229)

Ethiopia Eilert J. de Jong, World Bank Resident MissionResident Representative I.B.T.E. New Telecommunications

Building (First Floor)Churchill RoadAddis Ababa, Ethiopia

(mailing address: I.B.R.D. Mission,P.O. Box 5515)

Ghana Charles V. B. Munthali, World Bank Resident MissionResident Representative c/o Royal Guardian Exchange

Assurance Building, Head OfficeHigh StreetAccra, Ghana

(mailing address: P.O. Box M27)

(continued)

186 Bank/lIDA Appenzdices

World Bank Offices (continued) Appendix 7July 1, 1978

India Jochen Kraske, World Bank Resident MissionChief 55 Lodi Estate

New Delhi 3, India(mailing address: P.O. Box 416)

Indonesia Jean Baneth, World Bank Resident StaffDirector Jalan Wahid Hasyim 100

Jakarta, Indonesia(mailing address: P.O. Box 324/JKT)

Kenya John D. North, World Bank Resident MissionResident Representative Extelcoms House

Haile Selassie AvenueNairobi, Kenya

(mailing address: P.O. Box 30577)Mali Michael F. Carter, World Bank Resident Mission

Resident Representative Quartier du Pont, rue Square LumumbaBamako, Mali

(mailing address: B.P. 1864)Nepal David Thomas, World Bank (I.B.R.D.) Resident Mission

Resident Representative R.N.A.C. Building (First Floor)Kathmandu, Nepal(mailing address: P.O. Box 798)

Nigeria Alan Arben, World Bank Resident MissionChief 30 Macarthy Street

Lagos, Nigeria(mailing address: P.O. Box 127)

Pakistan Bastiaan den Tuinder, World Bank Resident MissionActing Resident Representative P.O. Box 1025

Islamabad, PakistanSaudi Arabia Roger Carmignani, World Bank Resident Mission

Director P.O. Box 5900Riyadh, Saudi Arabia

Senegal Jonathan C. Brown, World Bank Resident MissionResident Representative Immeuble S.D.I.H.

3, place de l'lndependanceDakar, Senegal

(mailing address: B.P. 3296)Somalia Cornelius P. Cacho, World Bank Resident Mission

Resident Representative c/o Somali Development Bank BuildingP.O. Box 1825Mogadishu, Somalia

Sudan Shawki Farag, World Bank Resident MissionResident Representative 28 Block 2H, Baladia Street

Khartoum, Sudan(mailing address: P.O. Box 2211)

Tanzania Lyle M. Hansen, World Bank Resident MissionResident Representative N.I.C. Building (7th Floor, B)

Dar es Salaam, Tanzania(mailing address: P.O. Box 2054)

Upper Volta Florent Agueh, World Bank Resident MissionResident Representative avenue Monseigneur Thevenoud

Ouagadougou, Upper Volta(mailing address: B.P. 622)

Venezuela Jose A. Guerra, World Bank Resident MissionResident Representative Centro Andres Bello

Avenida Andres Bello, 113-EMariperezCaracas, Venezuela

(mailing address: Apartado 6725,Caracas 101)

Zaire Attila Sonmez, World Bank Resident MissionResident Representative Building UZB, avenue des Aviateurs

Kinshasa 1, Republic of Zaire(mailing address: P.O. Box 14816)

Zambia M. Azizul Jalil, World Bank Mission in ZambiaResident Representative Kulima Tower (13th Floor)

Katunjila RoadLusaka, Zambia

(mailing address: P.O. Box 4410)

Photo creditsCover: Ray WitlinFrontispiece: Tomas SennectPage 39: Peter MunciePage 45: Ray WitlinPage 51: Peter MunciePage 57: Tomas SennettPage 63: Tomnas SennettPage 69: Jaime MartinPage 98: Ray Witlin

World Bank European Office:

Headquarters: 66, avenue d'I6na

1818 H Street, N.W. 75116 Paris, France

Washington, D.C. 20433, U.S.A. Tokyo Office:

Telephone: (202) 477-1234 Kokusai Building

Cable address: INTBAFRAD 1-1 Marunouchi 3-chome

WASHINGTONDC Chiyoda-ku, Tokyo 100, Japan

june 1978 - world bank document

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