56979 Vol. I, No.9 June 27, 1997 No second class citizens By Kevin Rafferty A frank, honest, trustworthy guy RICHARD STERN received a callout of the blue at about noon HUMAN RESOURCES vice on the last Friday of May with a president Dorothy Berry is active­ request-stroke-demand that he ly drawing up plans to make two take up a new post. "I did not get major concessions - on providing the job I applied for," he chortles maternity leave and setting up heartily. He had re-applied for his 401K pension arrangements - to current job as director of the aggrieved Non-Regular staff, industry and energy department, which may go a long way toward but he didn't get it. Instead, he reassuring them that they are not was pitched into the really hot second-class citizens. Berry told seat - as the Bank's first-ever Bank 's World that she had circulat­ deputy vice president, to human ed a note to vice presidents making resources VP Dorothy Berry. firm proposals and hoped to have "He's straight as a die... the maternity provisions in place straightforward and honest... frank, by July and the pension plan by the NRS For: but fair... totally trustworthy..." ­ start of 1998 "or sooner if we can." The concessions could help to liND SECOND these are the words that colleagues typically use about Stem. calm some of the fraught feelings The new deputy Vp, who will and uncertainty over how the take up his job on July 1, saw the Bank plans to set up its new per­ advantages he would bring: sonnel policies. Berry is putting "Clearly, having a team which Several hundred Non-Regulars pose for campaign picture; later a delegation saw president Wolfensohn and Dorothy Berry PHOTOS © RAFOTO the polishing touches on a paper consists of someone with tremen­ for presentation to the board of major areas. Each will be chaired the atmosphere is worse than it has question, "but we have concluded dous outside experience as an HR executive directors on June 30 by a line manager from the Bank, ever been. Fred Wright, the chair­ that if there are some things we professional and a recognized laying out the strategy for a com­ who will be assisted by a manager man of the Staff Association, com­ can do now for this significant leader in the field [Dorothy prehensive reform of the Bank's from human resources. mented that: 'There is a feeling that group of people, they would be Berry], and having someone," ­ personnel policy. It will cover The working group on employ­ management is not listemng to worth doing. Unless something Stern chuckles - "who really has four broad areas of HR ­ ment policy, chaired by Julian staff." He too admitted to being comes up that I don't know about been around the Bank, as an econ­ employment policy; compensa­ Schweitzer from LAC, will tackle under pressure, with his Non-Regu­ we would have maternity leave in omist, a loan officer, a country tion and benefits; managerial and some of the most vexed ques'tions, lar members complaining that they place by July 1 and we have set division chlef, a project sector professional development; and including Non-Regular staff, the are second-class citizens and doing January 1 as a target for 401 K pro· division chief, on the appeals the human resources framework. mix of consultants, fixed-term and the same work alongside Regulars posals, but we are trying to see if committee, makes sense. My She repeated her pledges that career staff, core competencies and but without either the same payor we can do the work quicker to strength is that I just know the severance policy. That on compen­ perks - while Regular members move that date up." place." The quotes reveal the fla­ sation and benefits will have Karl are grumbling that the NRS are get­ She will be helped by the vor of the man. He clearly Voltaire of IFC as chairman, while ting undue attention from the SA. appointment of Richard Stem to believes in straight-talk. ECAlMNA's Anil Sood will look External evidence of low He says of his new job: " It will after manageriaVprofessional morale comes from a staff attitude take a lot oftalking and a lot of sen­ development and Ian Porter of the survey in the ECA region. Accord­ sitive listening, without runlling corporate secretariat will be chair­ ing to the survey, 68 percent of away from problems. At some man of the HRM framework group ECA staff reported that morale point, discussion and consultation tackling decentralization, staff was low in the region and almost have to end and action has to begin. rules and HR services and costs. 59 percent said that the level of It is important to develop as much Berry: a lightning rod Berry also announced that a trust between managers and staff consensus as you can and, where there would be maximum consul­ study of pension reform plans was low. Management hopes that you can't, ensure that the various tation and chances for staff to would be done under Charlie Chih morale will quickly pick up when Trustworthy guy Stern groups understand why they differ. express their views before any of treasurer's. the new managers have settled in. the new post of deputy vice presi­ If you maintain the integrity of the changes were put in place. "I She added that "it is going to Wright added that if the two dent. She welcomed his arrival, process, if people disagree, you can know that staff and the Staff Asso­ take two and a half years or longer concessions to the NRS go saying he would bring strength as legitimately alik for their support." ciation are worried that there is to do the whole reform effort. through, it will be "a good sign." the person who knows the Bank He adds: "I am arrogant going to be some small group of Employment framework is proba­ Berry would make a breakthrough inside out. Contrary to widespread enough to feel that there is no big people sitting in a corner dream­ bly the pacing item, so we are by grasping an issue that has fes­ rumors that his appointment was challenge that I don't have the ing up changes that are going to looking for a proposal from tered since the late 1980s as the made to keep a check on Berry, self-confidence to take on ... I affect a lot of people. Many others Julian's group by the end of 1997." number of NRS has grown and Stern said in a separate interview: have always deeply believed in believe that we already have the Members of the four working grown along with resentment at "As far as I am concerned, the mission of the Bank. The answers to things but are just not groups are being appointed as management failure to keep Dorothy is Number One. I am bureaucracy has sometimes, fairly sharing them. That's just not true. Bank's World goes to press. promises about redressing the there to help her. We have differ­ often, frustrated me, but I have "We are looking for a widely par­ She conceded that there had grievances of "second class citi­ ent backgrounds and I think it never for one minute felt I was in ticipative, widely engaging way of been brushes with the Staff Associ­ zens". should work well." The the wrong place. Now we have a doing the work." ation and commented that she was She added that ,the question of announcement of his appointment major opportunity to change and To strengthen and wjden the "a lightning rod" for a lot of the dis­ NRS is an integral part of the by the president was a sign that the HR policy is central because in consultations with staff she has content in the Bank. In fact, other overall employment policy and "Jim attaches so much weight to the end that's what the Bank is, the set up four working groups on the Bank staff go further and claim that much thought is being given to the getting this HR thing straight." people." - BW Reporter INSIDE ... INSIDE ... AnswerLine, News .............................. 2 PREMier network .............................. 3 Severino on sheltered Bankers ......... .4 Y2K: ticking time bomb ...................7 Staff Association .................................8 Community Connection •.•••••..•.••••.••.•.8 Classifieds •••.•..................•...•.•••...•........ 8 Letters ................................................ l0 Keynes on common sense ................. l1 Baird on FY98 budget ...................... 12 World Development Report- p. 5-7 Shaping up the Bank- p. 9 Art or a baby show?- p. 11 2 June 27, 1997 ... NEWS ... NEWS .,. NEWS ... NEWS ... NEWS '" NEWS ... NEWS ... NEWS ... NEWS .. I PeopleSoft puts you in control By Lauren Ptito pensions [which is also launching cast their yearly payments based PeopleS oft on July 7], accounting, on the age at which they retire. IN A MATTER of days, staff and ITS. We have a strong linkage "1 think this is a pioneering Bankwide will get control of their with GSD on badge and security example of the way things will be own personnel files. Not only will issues, and we'll be linked to the done in the future at the Bank," they be able to see everything that executive information system, to said Asthana. "We chose to use an is in them, but they will be able to the knowledge management data­ off-the-shelf software package correct any inaccuracies or ornis­ base of experts, to the health instead of developing our own, sions and spiff up their CVsand insurance system, to the training which reduces the cost of the lists of accomplishments to make program ..." function. The streamlined, self­ themselves as palatable as possi­ ble in this climate of intense com­ petition for managerial positions. Bank managers will now be able to search a single, integrated service approach will also result in cost savings." The new software, used by Swift action averts fish fears By Al Drattell ing were reported outside the A new software package, Peo­ such corporate giants as Hewlett­ Bank. pieS oft, will allow individuals to Packard and Intel, also presented IT WILL BE some time before The consensus is that a type of access an HR Kiosk on the Bank's an opportunity for HRS to review the Bank's food services people scombroid toxicity that was intranet to update their personal its own 15-year-old systems, know how, if at all, the blue mar­ impossible for Marriott to detect data, addresses, emergency con­ especially in light of the recent lin incident of May 30 affected caused the poisoning, noted Greg tacts, training history, job actions, network-based reorganization. the annual food service survey, Moore, director of cafeterias. salary history, country experience Asthana explains: "Commercial Jeanne Sander, food services offi­ According to the FDA and Robert and language proficiency, and add software comes with best-practice cer, told Bank's World. This year E. Rosenthal, professor of emer" information into newly created models, and we are trying to fol­ the survey was done electronical­ gency medicine at GWU Medical sections for honors and awards, low these models as they are used ly for the first time. Center, ''There was absolutely no publications, and recent accom­ in industry. We did have to do At lunch that day in the MC way to teU that the fish was plishments. more customization than expect­ cafeteria, tainted fish felled 40 spoiled. The chef at the World Staff will also use the system to ed, though - the Bank's HR poli­ staff and guests, who were treated Bank's cafeteria could not have request benefits services (such as cies are very complex and could­ Asthana: truly energized by the health services department prevented the outbreak because home leave and education bene­ n't just be changed to match what for food poisoning. Of those, 28 the toxin has no odor or color." fits), record "life events" (mar­ database for suitable candidates came out of the box." were admitted to George Wash­ Abrao Grynglas ate the fish riages, births), view previous for tasks and vacancies, leaving it Asthana and his colleagues in ington University Hospital, but and was treated in the health room PMPs, and print their own up to staff to keep their files com­ accounting are looking at a human none was detained overnight. On where he received a shot of anti­ employment verification letters. plete and up-to-date. Training at resources administration system an average day, Bank cafeterias histamine. He didn't feel bad. "I The system will also be used for the learning and leadership center for the field, to ensure that field serve about 5,000 lunches. drank a beer with the blue marlin, the performance management will be registered automatically, staff files are as complete and up­ Following the poisoning inci­ and that solved the problem. I process. for example, but any education or to-date as those for HQ staff ­ dent, one piece of fish was taken could eat another. It tasted good." The new software will finally training done outside the Bank which is not the case today. to the US Food and Drug Admin­ According to Greg Moore, bring the Bank's assortment of must be entered via the kiosk. HRS wil1 also use Restrac soft­ istration lab for analysis. The Marriott closely regulates all the databases together. "This was an Staff will also be able to ware, which is tightly integrated Bank and Marriott, which pre­ Bank's food vendors to ensure excellent example of cooperation access a "benefits window" to get with PeopleS oft, to keep track of that they comply with the compa­ pares the food in the cafeterias, across Bank boundaries," said information on their pensions, the approximately 30,000 resumes are still awaiting the results. ny's guidelines regarding sanita­ Rakesh Asthana, manager of medical/dental plans, life insur­ it gets each year. The vendor who provided the tion and food safety. HRS's information services. "The ance, and beneficiaries. The win­ The kiosk goes on-line on fish to Marriott received 175 There is no US-mandated HRSIS team was truly energized dow includes a nifty pension cal­ July 7. To access it, go to pounds of blue marlin caught off inspection required of seafood by this effort, and worked with culator which allows staff to fore- http://hrkiosk. the coast of Ecuador, and 24 products, but the vendor involved pounds were delivered to the MC submits to both FDA and Mar­ SOWA TAKES UP FIRST MICHAEL BRUNO FELLOWSHIP cafeteria at 11 am. Once the reac­ riott's hazard analysis and critical Nil KWAKU SOWA (below), months doing research at the Bank. the Centre for Policy Analysis in tion occurred at about 12:30 pm, control point inspection of its aged 47, of Ghana, came to Wash­ Sowa recalled how Bruno's Accra, has published a number of the Bank contacted the District of seafood processing and receiving ington this month as the first gentle diplomacy in Ghana had papers on inflation in Ghana and Columbia health department, area. Marriott at the Bank piloted Michael Bruno helped to ease the tension building elsewhere in Africa. "For most which alerted the vendor not to the program in 1993 which sys­ Fellow. The fel­ between the government and out­ African countries, supply factors sell any additional marlin and to tematically targets possible prob­ lowship allows side economists critical about infla­ dominate, but monetary pressures recall any that may have already lems and documents the steps researchers from tion: "Michael cautioned the gov­ are very pronounced because of been delivered. As a result of the taken to ensure that food is han­ developing coun­ ernment that they should listen." structural fiscal deficits in most Bank's prompt sharing of infor­ dled correctly. This voluntary pro­ tries to spend six Sowa, a research fellow with African economies." - BWR mation, no cases of food poison- gram is practised in all Bank food facilities, though it is not legally ... ANSWERllNE ... ANSWERLINE ... ANSWERllNE ... ANSWERLINE ... AN Q. required by the DC authorities. There is a growing concern our "Intranet". They are not the trade-off of benefit versus pressed. Bank staff can still Luis Descaire, acting director of .among Bank staff about accessible to the general public risk was considered and the access their voice mailboxes and GSD, praised the cooperation having our photos posted on the using the "Internet" or World photo was added. Staff, however listen to their messages when between GSD, health services and World Bank Internet directory Wide Web. do have the option, via an e-m using a telephone calling card. external affairs in swiftly tackling (including individual information This information is a part of request to directory services to To avoid pressing the pound (#) and informing about the outbreak. such as title, room and phone the Bank's directory service and not have their picture included. sign and being disconnected, the numbers). I know one case where the ID photo is made available As with all information, abus­ caller may call the voicemail sys­ BANK'S W~RLD someone was harassed - the along with basic (non-personal) es are possible and instances of tem (202-473-5555), press the World Bank Group harasser had gotten the informa­ information such as telephone, these should be reported to the star (*) key, and then their exten­ 1818 H Street. NW Washington. DC 20433 tion and her photo from the room number, organization and ethics officer. sion to access their mailbox. Pbone: 473·2211 Fax : 522·2477 World Bank Internet staff directo­ title. This is similar to the infor­ GeorKe West Once inside the system, the caller Editor Kevin Rafferty ry. I've also heard that it is elec­ mation already available in the Senior adviser, ITS may listen to their messages and Assistant Editor Lauren Plito tronically possible to cut and Bank's telephone directory except use most of the functions of Contributing Editors Brigitte Aflalo Q paste the head of a photo onto for the photo. In the interest of .I was out of town, and tried voicemaiI. (Sending messages, Al Drattell Production ControUer Kuniko Kurimura another body! As for personal openness the telephone directory • using a telephone card to recording greetings, and chang­ Design Adviser Daniel Hood experience, my photo (with its is also available to the general access my mailbox in the Bank ing passwords require the use of EdItorial Board infonnation) was taken from the public through the Bank's book­ Group. Unfortunately, when I got the pound sign and are unavail­ Tim Cullen. Judith Maguire. World Bank directory and sent to store and is our best-seller. through to the Bank system and able for the calling card user.) David Theis. Racbel Weaving someone I've never met outside Basic directory information is obeyed the instruction to press the Elise Patton Contributors the Bank. The recipient e-mailed made widely available within pound sign, hitting it terminated lIS telecommunications Clare Fleming, Morallina George. me about it. Why include this personal information in the WB the Bank with the express purpose of facilitating communi­ the call. Can you advise how to access the mailbox without hitting Send questions to Morallina F. _.__ _ - - __ Yoser Hadar.Minerva Naldo, YR. Radhika BanIc 's ..• ~rld .. .- ._­ - is a publication for the staff of the World Bank Group and i~ published by the vice·pres· directory? cation. The addition of the photo the pound sign, please? A• George, AnswerLine, Rm. U·H­ idency for External Affailll. The views expressed in The photos of Bank staff are • available only to individuals who have access to the Bank's allows staff to associate names with faces but, as the questioner pointed out, it also raises a risk A .Most telephone calling 028, using an envelope marked • cards use the pound sign to "CONFIDENTIAL". Non-confi­ signify the end of a call and will dential questions may be sent by e­ Bank's ~rld are those of its writelS and do not nec· essarily reflect the position of the World Bank Group. the members of its Boord of Executive Direc­ torn, or the countries they represent. Bank's World reserves the right to edit all articles internal Enterprise Network i.e., of possible abuse. In this case disconnect the caller when mail to BanksWorld. before pubJ ication. June 27, 1997 3 ... NEWS ... NEWS ... NEWS ... NEWS ... NEWS ..• NEWS ..• NEWS ... NEWS ... NEWS .. Koch-Weser sets Ahmed aims to make PREM the premier network 'Green Top Ten' By BW Reporter Although PREM has been we needed a way to be close not MANAGING DIRECTOR described as the economists' net­ only to operations but also to Caio Koch-Weser this month MASOOD AHMED promises work, Ahmed notes that of the research, global prospects, data challenged the world conununity that although the network that he almost 900 members, only 70 per­ and EDI work. So we decided that to apply affordable, practical heads has been the last to get off cent are economists; others this network would be part of measures to combat the continu­ the ground, it will be exciting, ful­ include country officers, public DEC, so I report to Joe Stiglitz ing degradation of the environ­ filling and at the cutting edge of sector management specialists and also to Gautam Kaji. If the ment. He announced the Bank's the World Bank's new agenda. and social scientists. PREM network is to be effective "Green Top Ten" agenda. This is not least because the net­ He has honed in on four broad it should provide a link between Andrew Steer, the Bank's work's members are all actively areas where PREM will concen­ DEC and operations. If you think environment director, noted that involved in the vital tasks of eco­ trate its resources. The first is to about it, it is the natural middle carbon dioxide emissions in nomics, poverty reduction, debt provide easier access to frontline between research, which is developing initiatives and gender issues. staff to the best-established eco­ knowledge creation, and the net­ countries have The full name of the network is nomic practices, "so that if some­ work function, which is knowl­ jumped by Poverty Reduction and Economic body wants to go out and do a edge management, best practice nearly 25 per Management, normally called public expenditure review, they assimilation, policy development, cent in the five PREM. Two critical areas where ought to be able to get very easily and operations." years since the Ahmed plans to attack corruption Ahmed has already decided to what is the latest thinking on how He has ambitious plans for Steer laments Rio Earth Sum­ commit the network's energies are to do reviews well or not well," point to deal with this area and PREM: "It is not just best practice mit, that pollution continues to in devising strategies to help coun­ added Ahmed. "We now have make it mainstream." among ourselves that matters; it's worsen in many cities, and that tries to tackle corruption and in informal networks, but it works The third area is to help to best practice. The networks also tropical plants and bird life con­ helping to implement the initiative well if you know who to call, less upgrade staff skills. The last is to have to reach out. One of the tinue to be lost at a rapid rate. to aid heavily indebted countries. wen if you don't and less well still bring more proactive manage­ things on which we should judge Both said that the Bank ­ "We are the network that deals if you are new to the Bank or in a ment of rei ation shi ps with the ourselves is how much we have now the world's largest financier with cross-cutting economic man­ resident mission. Best practice is Bank's external partners. For reached out, to other networks of environment projects, with a agement issues, so that makes us more than just a set of episodes. PREM, the two partners it will and outside the Bank. There is a $12 billion environment portfolio slightly different from the other Good best practice is episodes that concentrate on are the IMF and little bit of a danger, which we - is deeply concerned about this networks," Ahmed noted. underline an important analytical the World Trade Organization. need to avoid, that the networks lack of momentum and that the "We now have four families in framework." Ahmed added: ''The bottom become very good for networking time has come for greater global the network dealing with econom­ The second broad area is line for me is that the networks within but not so good for net­ partnership on every front. ic policy; public sector reform and strategic direction, identifying should be judged by whether they working across." Internally, the Bank's environ­ management; poverty reduction; new areas for the Bank to be get­ have improVed quality or accessi­ In its sector boards PREM is ment family celebrated World and gender development. In ting into and developing those ini­ bility of best practice to Bank staff including other networks as well Environment Day on June 5 on a essence what these families do is tiatives. Work against corruption or improve the strategic guidance as regional members. "If PREM two-day retreat to begin nailing take broad themes or areas of our and in aiding the HIPC initiative to the Bank's substantive agenda is going to be the cross-cutting down specific work plans. Three country economic work and try to fall under this category. Corrup­ or improve the skills of our staff. network then it is incumbent on keynote talks addressed the three define very specific ways in tion, he added, "is a difficult area "The other three networks us to make an extra-special effort facets of the Bank's environmen­ which we can improve our ser­ but one we have decided to grap­ report to the managing directors to reach out and be inclusive of tal strategy: listening to clients, vices to operations." ple with. We need to have a focal for operations. In our case, we felt the other networks." internal change, and partnerships. "GREEN TOP TEN" • Phase out lead in gasoline within five years SAN JOSE CUTS COSTS AND STILL STAYS POPULAR • Eliminate CFCs more aggres­ By BW Reporter but to serve our clients better, to food services, graphics and map and the turn of the century, GSD sively streamline, introduce efficiencies design, printing, procurement plans further cuts in costs per • Build global carbon markets PILAR SAN JOSE recently gave and bring in new technology." security, translation and interpre- workplace by between 10 and 15 to reduce climate change up the high-profile job of director Her col­ percent, thus cutting its net budget • Make water an economic asset of the general services department league and share in the Bank from 4.5 percent • Make cities more livable after almost four years in which GSD senior at present to 3 percent or less. • Conserve and manage critical she brought costs and staffing lev­ manager San Jose says she has always ecosystems on land and at sea els down sharply but simultaneous­ Koos van encouraged people working for • Commit new money for GEF ly managed to boost morale in the den Berg her to take responsibility. But she • Build alliances to transfonn department. Under her streamlin­ chips in to reflects that there is sometimes a the marketplace ing, the number of divisions was admit that problem with the Bank's • Adopt greener accounting and cut from seven to four, sections "GSD has ingrained culture: ·'Perfection has eliminate harmful subsidies from 23 to 18 and Regular staff become been the nemesis of the Bank," • Apply environmental and so­ reduced from 350 to 234, while more client she adds. "We cannot tolerate mis­ cial assessment consistently GSD expenses came down by 20 focused takes. We can't be human." The same day also saw fresh Van den Berg (I) with San Jose: human and humane ways percent to $79 million. over the last She herself has now moved to evidence of an unusual emerging Modestly, she refuses to grab couple of years, our services have tation, travel and even the Bank's Dorothy Berry's office where her partnership. Scientists, technolo­ the credit, claiming, "What I tried improved and we are a much more art program. specific responsibilities include gists, economists, industry leaders, to do from the beginning was to efficient operation. Although we The reforms have set the stage serving as the HR lead on the and senior government representa­ suggest that we were working as a have downsized considerably, it for the next steps in the renewal of human resources framework and tives met for a two-day conference team and would stand together or was done in a very humane way." the department. A key point will supervising the implementation of to discuss whether addressing cli­ faU together. Everyone was made GSD is one of the most diffi­ be support for the Strategic Com­ the Compact-related separation mate change will require a major responsible for a specific service cult departments to run precisely pact, particularly in helping to program. In the cost~cutting cli­ technology revolution in energy for which he or she was clearly because it contains a motley transfer budget resources to the mate, it will test the people skills supply and demand. accountable. We did not do this assortment of services, from man­ frontline and to support the decen­ of one of the best-liked managers The group, chaired by Jack just for the sake of relaunching, aging the Bank's real estate to tralization program. Between now of the institution. Gibbons, President Clinton's sci­ ence and technology adviser, and Bob Watson, senior scientific Bank funds help to launch space satellites adviser at the Bank, was chal­ THE WORLD BANK late last month helped launch ian and Ukrainian companies to conunercial pur­ lenged to identify and find solu­ a unique venture to fire commercial satellites into poses would preserve between 20,000 and 30,000 tions to the problem of meeting space from the ocean. It provided two $100 million jobs. global energy demand while pro­ partial risk guarantees for commercial bank loans to Sea Launch will use a converted oil platform in a tecting the climate. Global Envi­ support the Sea Launch Limited Partnership, a con­ remote part of the Pacific Ocean in international ronment Facility chair Mohamed sortium between Boeing Commercial Space Compa­ waters south of Hawaii. Yuzhnoye's launch vehicle EI-Ashry announced that the GEF ny of the US with 40 percent, Energia of Russia (25 will take the satellites out of the earth's atmosphere would explore forming a strategic percent), Kvaener Maritime of Norway (20 percent) and Energia's booster will take them into GEO partnership with the Bank and and Yuzhnoye of the Ukraine (15 percent). orbit. other key players to develop a bil­ The guarantees will cover the political risks of Watkins said the negotiations were tricky in lion-dollar fund to make renew­ investments in two former Communist countries in involving Russia and the Ukraine in close sequence able energy an economic reality what used to be top secret military establishments. and unique in allowing him to visit facilities previous­ in the coming century. Al Watkins, the task manager for the project., said ly strictly otT limits to foreigners. "And it's not every - BW Reporter that the conversion of the hi-tech skills of the Russ­ day that you get to negotiate with rocket scientists." 4 June 27, 1997 ... THE BANK AND THE WORLD ... THE BANK AND THE WORLD ... THE BANK AND THE WORLD 'More bureaucratic than any civil service' Bank staff live in their own world, unexposed to political realities, asserts VP Jean-Michel Severino J ean-Michel Severino, the youngest and gress - with people from civil society, all nearly the newest vice president of the these people wanting to get money out of World Bank, calls the institution "fasci­ you, trying to gain political advantage. You nating'" which is itself a fascinating word to have to spend your time negotiating with use, suggesting praise with just a hint of people who generally have very different uncertainty and criticism. So it proves. agendas from you." He arrived to take up a senior position in So coming to the Bank offered Severino the Bank - a directorship and then the East a taste of the paradise of leisure. "The Bank Asia and Pacific vice presidency with hard­ cannot imagine in what a wonderful world ly a moment for the ink to dry on the origi­ it has lived for so many years, left on its nal announcement of his arrival - with an own. The Bank has its own agenda in most unusual history. He does not have a PhD or countries, especially the smallest ones ­ a glorious history as a young professional. not the Chinas, Indonesias or Mexicos of Instead, he has THE impeccable seal of this world. approval as a bureaucrat, graduation from ''That is why the Bank needs regenera­ the elite Ecole Nationale d' Administration, tion and has to look outwards. Paradoxical­ followed by a high-flying career in the ly, in a state administration in a capital of a French civil service. democratic country, you have to be flexible He lavishes paeans of praise on the and spend your time negotiating with stake­ superb quality of Bank staff: ''The extraor­ holders and you are in a weak position gen­ dinary strengh of this institution is the level Severino: Bank staff not exposed to real responsibilities, don't face political choices erally. The others can resort to political of its staff. Maybe the people in the Bank ''There is really a disconnect between you an example of what I mean and why the means to work on your minister, and you are not fully aware of the richness of the the way we use these top people, because Bank is a different case. The first months I are depending on your minister and have to people." But, Severino suggests gently, there are so many and there is no other way. was acting as a director of this institution spend your time trying to convince your there can be too much of a good thing: People here get their first managerial expe­ were for me a dream, in one specific area: minister NOT to do something. Generally if "Sometimes, and you might find this odd, it rience at level 26, a very rare experience, Nobody took care about me and I was able you are in a country with a strong civil ser­ is a problem because when you have too when they are 40 or even in their late 40s. to spend my days working on my business. vice you can convince your minister, but it many good people in the same room they [So the most striking thing I found was] My vice president was a real boss, an excel­ takes a lot of energy out of you. You have start annihilating each other and the out­ these people, their quality and the way they lent boss, who discussed strategy and then to listen to what other people are saying to come is not at all a good one. It is a quality, are exposed, or not exposed, to real respon­ let me do things. I could spend weeks with­ you, and in a reasonable number of cases, an extraordinary asset, which has to be sibilities until very late in their career." out anyone to meet except for my col­ you have to change your ideas." managed and used correctly, which it has That is not the only difference in the leagues. Severino then comes back to the Bank: not always been." career patterns: Getting real responsibilities "When I recall my previous position in "That has not been the case of the Bank for Severino draws comparisons from his so late means "they are not focused on man­ charge of operations in the ministry of a number of years and that is why the Bank own expeliences in the French bureaucracy aging realities, nor are they faced - until cooperation, on a typical day I would have has been progressively more and more and sees some notable differences: "The very late in their career - with the difficul­ spent one or two hours in the office of my under attack, has become isolated and, at French civil service is in general considered ty of political choice. Instead, they are minister. I would have been twice in the day the end of the road, has become a very rigid a good one with a lot of talented people in working with intellectual issues and it to the presidency at the Elysee [Palace], institution. That is a main focus of the it, but I cannot imagine a young man or shapes their mentality." then later would have to go to inter-ministe­ change agenda for Mr Wolfensohn. young woman of 35 years old who had The consequences are widespread. Sev­ rial meetings between 8 pm and 10 pm with "A key element is to put people more in come through the national school for erino continues by outlining the weakness­ seven people from four different ministries front of the pressure, of the client, of the administration who at this age would not be es of the Bank which, he asserts, "is even trying to fight each other. Then in the mean­ stakeholders, and leave them to develop leading a unit of 40 or 50 people, high level more bureaucratic than any civil service in time I would have people from newspapers agendas which are much more negotiated people, with managerial responsibilities, the world. In comparison with the World coming to interview us in order to be able to and therefore fit much more into reality and strategic responsibilities. Now which task Bank, the French civil service is very fast, write nasty articles, and meetings with the become much more relevant to society. manager of this age [in the Bank] with a very agile, very dedicated." NGO community drafting trash on us. There is also the danger that if you go too PhD, coming from the best and brightest He brushes aside arguments that being "It is 'the same in governmental adminis­ far you lose any capacity to develop and universities in the world, is really having from the same administrative cadre, of the tration in every democratic country in the implement policies. But it is not a question responsibilities of the size they would have same nationality, speaking the same lan­ world, you spend your time your time deal­ of going from one extreme to another, but in the French civil service, or in the British guage, having the same national goals is a ing with politics, with ministers, deputies, of correcting an excess." civil service? major explanation for this. "Let me give senators - equivalent to members of con­ - Kevin Rafferty PROCUREMENT DELAYS CAN BEA 'M AlTER OF LIFEAND DEATH W hile procurement delays in, say, problem in the country, the adoption of cated to narrow project categories need to infrastructure projects can be healthier sexual behavior, especially among be redesigned to be more responsive to frustrating, they do not have the youth, and steady progress in developing demands from lower levels. same life-threatening repercussions that curricula and materials for training health Back in DC, knowing that procurement they have in health projects. In discussing workers in the syndromic approach. has been a long-standing problem in sever­ the status of two Bank-supported health Hans Binswanger, senior policy adviser al Bank projects, the health project team, projects in Uganda, procurement issues for agliculture and rural development, in the country director and I decided to were uppermost in the minds of our Ugan­ Uganda to review progress in the rural devel­ approach the human development network dan counterparts and those of other visiting opment sector, was impressed by progress and the Bank's procurement specialists Bank staff from various sectors. made in the national extension program, about developing a long-term sustainable Staff from the National Medical Stores resulting in improved yield through new procurement system that Ugandans can (a parastatal agency) told us about delayed agricultural practices, but was concerned manage and adopt as their own. We could procurement of condoms and drugs for sex­ about procurement, disbursement, and do this in partnership with international ually transmitted infections and tuberculo­ @ financial control problems. Procurement agencies, donors, and perhaps even the sis. The Bank's procurement procedures, delays have slowed implementation and pharmaceutical sector. Most of all, we can designed to ensure reasonable prices and undermined community participation. work with our Ugandan counterparts until fair opportunities for bidders, did not allow , Now that Uganda has decentralized gov­ we get these issues resolved. for the timely delivery of condoms. Gov­ Mother and child at a Rukungiri district health fair ernment services, executing entities have By emphasizing "results on the ground", ernment capacity problems and the lisk of absence of sophisticated laboratory tests, moved from central ministlies to district the Bank: has challenged us all to rework drugs being stolen were also key issues. identify common symptoms and signs of and sub-county governments. The role of our approaches, sharpen our analytical The Ugandans also warned that, when infection and provide a "cocktail" of drugs central units has evolved from directing tools, and revise our project designs in any being procured from several suppliers, to treat all possible infections during the programs to responding to districts' way to meet the demands of our clients in drugs may not arrive at health facilities as a same visit. Treatment would have to be sus­ demands for technical support, planning developing countries. complete package due to differing delivery pended until the necessary quantities and and monitoring assistance, and information - eaby Verzosa dates. [Bidding is done by item, not by lot.] combinations of drugs arrived. dissemination. The Bank needs to revisit its The author, an internal communications This would disrupt the "syndromic" Despite these barriers to field implemen­ project strategies and adapt procurement, officer, was a member of the supervision approach to managing sexually transmitted tation, the health projects have contributed disbursement, and financial control systems mission for the sexually transmitted infec­ infections whereby health workers, in the to widespread awareness of the HIV-AIDS to the new set-up. Funds which were allo­ tions and district health services projects. June 27, 1997 5 Good government: vital, not a luxury 'Markets and government are complementary: the state is essential for putting in place the appropriate institutional foundations for markets' - Joseph E. Stiglitz, World Bank chief economist JAMES WOLFENSOHN goes to the heart of the message of this year's World Development Report in his foreword: "History has repeatedly shown that good gov­ $80B A YEAR TO ernment is not a lUXUry but a vital DEFEAT POVERTY necessity. Without an effective state, sustainable development, THE UNDP's just issued Human both economic and social, is Development Report argues that impossible." The Bank president eradicating extreme poverty with­ points to successful East Asia and in the first 20 years of the next to "the agonies of peoples in col­ decade is a feasible goal, even lapsed states such as Liberia and though today about 1.3 billion Somalia" as examples of the dif­ people continue to live on less ference that effective and ineffec­ than $1 a day. tive government can make. The additional cost of achiev­ The report, subtitled The State ing basic social services for all in in a Changing World, shows how developing countries is estimated the state has enormous sway over at about $40 billion a year over a country's prospects. "The state's the next decade - or less than 0.2 potential to leverage, promote, percent of the world income of and mediate change in pursuit of $25 trillion. The amount needed collective ends is unmatched. to close the gap between the 35 years ago. Africa was almost as rich as EastAsia PHOTOS © IRAFOTO Where this capacity has been used annual income of poor people and well, economies have flourished. since then, East Asian govern­ mous harm, either by making laws Commonwealth of Independent the minimum income at which But where it has not, development ments, adopted sound policies and that discourage the creation of States, and half in Latin America they would no longer be poor has hit a brick wal!," it says. delivered effective government, wealth, or breeding uncertainty and Africa but none in the OEeD would be another $40 billion a Yet, the process is not irrevo­ whereas Africa has languished. that stunts business and fosters nations ~ face the triple curses of year. These are big sums, though cable. The reform of state institu­ Four recent developments have corruption and capital flight. conuption, crime and an unpre­ $80 billion is less than the com­ tions is long, difficult and politi­ given impetus to worries and The WDR team surveyed more dictable judiciary that offers little bined net worth of the seven rich­ cally sensitive, but the cost of questions about the state's role: than 3,600 domestic companies prospect for recourse. est men in the world. doing nothing is huge and unac­ • The collapse of command­ (including local affiliates of inter­ The report proposes a two-part To eradicate extreme poverty ceptable. 'The clamor for greater and-control economies in the for­ national fInns) in 69 countries. strategy to make every state "a in the first two decades of the new government effectiveness has mer Soviet Union and Central and Entrepreneurs were asked to eval­ more credible, effective partner in millennium, the authors warn that reached crisis proportions in Eastern Europe. uate different aspects of the insti- its country's development." The new strategies many developing countries where • The fiscal crisis of the welfare first is matching the state's role to are needed to the state has failed to deliver even state in many industrial countries. its capability. The second is to accelerate eco­ such fundamental public goods as • The important role of the state raise state capability by reinvigo­ nomic growth property rights, roads, and basic in the "miracles" of East Asia. rating public institutions, making in 100 coun­ health and education." States that • The collapse of states and them more transparent and open. tries caught in postpone reforms may face politi­ explosions in humanitarian emer­ "Governments," emphasizes stagnation or cal and social unrest or even dis­ gencies in several parts of the the report, "are more effective decline. they integration. world. when they listen to businesses and Jolly: pro-poor include specif­ "Globalization" is not yet truly "Global integration and the citizens and work in partnership ic policies that are "pro poor" and global, the report notes. About spread of democracy have nar­ with them in deciding and imple­ try to reverse the menacing set­ half of the people in the develop­ rowed the scope for arbitrary and menting policy." The best mecha­ backs that create and recreate ing world have been left out of the capricious behavior," the report Today Asia motors ahead nism for giving citizens a voice is poverty, including HIV/AIDS, rise in the volume of international asserts. "Taxes, investment rules, tutional framework in their coun­ the ballot. In 1974. only 39 coun­ violent conflict and environmen­ trade and capital flows. Joining and economic policies must be try, including security of property tries were independent democra­ tal degradation. the global economy has risks. It ever more responsive to the para­ rights, predictability of rules and cies; today, 117 use open elections Richard Jolly, the main coordi­ can make a country more vulner­ meters of a globalized world policies, reliability of the judicia­ to choose their leaders. nator of the report, warns that able to external price shocks or to economy. Technological change ry. problems with corruption and An effective public sector is poor developing countries are los­ large, destabilizing shifts in capi­ has opened new opportunities for discretionary power in the bureau­ critical for good governance and ing $500 billion a year - or 10 tal flows. But in the end, the costs unbundling services and allowing cracy and disruptions due to statehood, because well-function­ times total foreign aid - because of not opening up will be a widen­ a larger role for markets. changes in government. ing bureaucracies can promote of unequal access to trade, labor ing gap in living standards Governments must see them­ The results: 80 percent reported growth and reduce poverty. They markets and finance. between the have and the have­ selves no longer as sole providers that unpredictable changes seri­ can provide sound policy inputs The report is best known for its not countries. An effective state, but as facilitator and regulator." ously affected business; they com­ and deliver critical public goods human development index, which adds Wolfensohn, can play "a The state can improve develop­ plained of lack of basic institution­ and services at least cost. measures progress in terms of life catalytic, facilitating role, ment by setting the right incen­ al infrastructure for a market econ­ In today's interdependent expectancy, educational attain­ encouraging and complementing tives, providing an institutional omy~ they expressed concerns world one country's actions often ment and income. Canada, France the activities of private business­ framework - property rights, about judicial capriciousness lead­ have implications for others. and Norway top the rankings this es and individuals." peace, law and order, and rules - ing to arbitrary and unpredictable "There is growing recognition that year, followed by the US and the The impact of government is that encourage efficient long-time enforcement; and they said that some needed public goods and Nether1ands. Hong Kong, Cyprus seen in the contrasting perfor­ investment and ensuring basic corruption is an important and services (such as the environment, and Barbados come top of the mance of sub-Saharan Africa and education, health care and physi­ widespread problem for investors. trade, investment, etc.) can only non-industrial economies; Sierra East Asia. In 1960, per capita cal infrastructure while protecting Companies in 27 of the 69 coun­ be secured through international Leone, Rwanda and Niger are at incomes in East Asia were only the natural environment. tries - including more than 75 cooperation," the report notes. the bottom. slightly higher than in Africa. But The state, though, can do enor- percent of those In the - Al Drattell The report also contains a new human poverty index which looks at opportunities for a long, healthy REPORT CARD ON HOW REGIONS MEASURE UP life and a decent standard of liv­ for continued economic success. reform of the legal system, the • In sub-Saharan Africa, many • In the Commonwealth of ing. Of the 78 developing coun­ • In South Asia, the problem civil service, and social policies. countries are suffering from a cri­ Independent States, low state tries (data were not available for is overregulation. Public employ­ sis of capability. An urgent prior­ capability is a serious obstacle to • In the Middle East and all), Trinidad and Tobago, Cuba, ity is to rebuild state effectiveness ment is bloated, often leading to North Africa, unemployment is progress in most areas of eco­ Chile, Singapore and Costa Rica by overhauling public institu­ corruption. Regulations must be nomic and social policy. Many the greatest economic and social do best, having reduced poverty to tions, reasserting the rule of law, simplified, public enterprises problems have become apparent problem and makes government less than lO percent of the popula­ initiating credible checks on reformed, and the role of the as a result of the lack of account­ downsizing difficult. A promising tion. In seven countries-Niger, abuse of state power and deliver­ state contracted. ability and transparency. approach might be to decentral­ Sierra Leone, Burkina Faso, ing better public services. • In Central and Eastern • In Latin America, a "quiet ize selected services and focus on Ethiopia, Mali, Cambodia and • In East Asia, states' ability to Europe, most countries are revolution" is unfolding. A new reforming state enterprises while Mozambique - poverty exceeds change in response to new chal­ improving capability and model of government is emerging, preparing for wider-ranging 50 percent. - AD lenges facing the region is critical accountability. but greater emphasis is needed on reforms. - From WDR 6 June 27, 1997 Business to Bank:Worry Bonk's World interviews Ajay Chhibber, staff director of the World Development where the World Bank is trying to boost the state's role to make economic ani A jay Chhibber claims he made a world but also include the developed dence asking the same questions across so countries it is a huge problem, and in 50 minor but highly significant world" - which has pioneered many of the many countries." countries it is almost an acute problem ­ change in preparing this year's new ideas, especially as government bud­ Corruption ranks and rankles much that did surprise us." Chhibber suggests that World Development Report, of which he gets have become constrained. more in the eyes of businesspeople than had there is no need to name the countries be­ was staff director: "The title that was given He's also proud that his emphasis on been thought, he asselts. "[The survey] has cause "they are well-known to my col­ to me was 'The role of the state in a chang­ participation bore special fmit through the given us a very clear handle on some of leagues in operations" and the entrepre­ ing world', and my contribution was to drop worldwide survey of business attitudes these corruption issues. Here we have been neurs affected themselves know and under­ the words, 'the role of' because I felt that toward gov­ stand all too well - as the survey proved. there was plenty of academic discussion on ernment: "It He adds that, "So much of our work is fo­ the right role and the wrong role of the state was done in cused on financial issues, regulation, the and not enough discussion of the effective­ 69 countries more standard infrastmcture framework, we ness of the state. One way of signaling that with the help might be missing a big story. We now have was to drop those few words from the title." of many a message that we need to worry about these It reflected his determination to write a people from [lawlessness and corruption] issues much report that would be both practical and use­ the opera­ more in the way we think about country as­ ful. He followed with a canny move in tional side of sistance strategies and the kind of advice we sending his staff to 40 countries to get the Bank. are giving countries on a systematic basis. views before the main outline was made. This gave us "We are also seeing collapsing states al­ "We talked to governments, the private sec­ a wealth of most on a weekly basis. In the past, the cost tor, labor unions, NGOs, other international information, of inappropriate government action used to organizations. The benefit was that we got a raw research be in postponed benefits for people, but lot of different views and a lot of free input rather than these costs now are much greater because from all over the world from people who previous people are not willing to tolerate the same were keen to get their work into the World work. We degree of inefficiency and incompetence Chhibber: awake to the importance of states' night-watchman role Development Report." To bolster this, felt that this and are more willing to revolt. The sta!kes Chhibber also set up an expert panel of out­ was important because we were pushing able to show what are the factors that are are much higher, so the reforms that the re­ siders, "practioners rather than academics," into institutional areas where there is not a clearly associated with corruption, so that it port is talking about are more imperative." he quickly adds. lot of hard evidence." gets taken out of a moralistic, cultural tone, He says he is heartened by the fact that gov­ Chhibber, an Indian from the northern There is no naming of names, no list of towards a more instmmental approach. And ernments have been asking for survey re­ state of Haryana, moved from Indonesia winners and losers, no league table of cor­ then [it has provided] clear vehicles for ad­ sults in their own countries so that they can country operations division chief to be in mption or even listing which states have dressing the issue of corruption. take action. charge of the report. Modestly, he asserts the best practices. Some big and important "We were aware of these problems of Chhibber expects the Bank to benefit that, "My job was to be given a budget countries were not surveyed at all, notably crime, theft, corruption, law and order, but from the World Development Report: "The [$2.5 million, including all the costs of China and Indonesia. Indeed in the vast the extent and degree to which they biggest benefit is that it will change the per­ printing, publication and translation into mass of Asia and the Pacific, only India, emerged as major problems for business ception of the Bank. We were perceived to nine languages plus two new ones this year, Malaysia and Fiji were surveyed. Chhibber [surprised us]. We did a ranking and found be in the business of dismantling govern­ Hindi and Swahili, for the summary] and rejoins that it was a question of what could that in many parts of the world it's not the ment. We in operations know that we are then the freedom of how to frame it." He be done quickly: "We are not in the busi­ cost of finance or the regulatory environ­ not in that business. But that perception is says putting the report together was the best ness of ranking or embarrassing countries. ment or even infrastmcture, those kinds of out there, and what this report will do is job he has ever had. The main purpose of the survey was to do things we have focused on, but it is - in a change it since its main focus is how to "There's enormous rethinking about the hard analysis on issues like corruption, word - the very night-watchman functions make goverrunent more effective [not to try role of the state going on all over the world, crime and theft, judicial predictability and of the state that are not being performed. to abolish government]." so we decided very early on that we would reliability, issues on which there is a lot of The extent to which this lawlessness syn­ The findings have implications for Bank focus this report not just on the developing anecdotal evidence, but no systematic evi­ drome emerged as a major problem - in 27 operations too, claims Chhibber. The other MODEL THAI TITLING ANSWERS DREAMS A W hen the Bank started the project back in the 1980s, Yves Wong recalls, "it was an act of faith because no one could portant marker of a market economy be­ cause land can then be traded. Jessica Mott, who took over as task English. Relatively few of the staff spoke or read English well at that stage, but the project became 'theirs' when they were demonstrate that there was an economic manager of the very first phase back in able to read the documentation in their own benefit." Now it is heralded not only as an 1984 after Bill Patton had done the prepara­ language. I think that this lesson continues excellent project but as exemplar of the way tory work, remembers the "wonderful sense to be relevant to mral development and that the Bank and a government can coop­ of camaraderie" erate to lay the foundations for a modern between the economy, precisely the kind of hope that the Bank mission World Development Report speaks of. teams, the Aus­ Almost 10 minion people have been di­ tralian consul­ rect beneficiaries of the Thai land titling tants and the project as the whole country is being Thai department mapped and land certificates awarded. The of lands staff. government is happy because it sees both a She points to fresh revenue stream and a layer of mod­ many advan­ ernization coming from it. Moreover, gov­ tages and ernments from several thousand miles lessons that away are looking to see what they can learn were learned, and whether they can borrow the expertise well beyond the of the team. hard work of Frank Byamugisha, the task manager mapping the Mapping out land in rural Thailand PICTURES IN THIS STORY BY © BHJi Eng. for the current phase 3 of the project, now land, establish­ also supervises similar land titling pro­ ing title and awarding the certificates. natural resource management projects grams in Laos, and points to "the sheer joy "One special aspect that enhanced the today." on people's faces when they get their cer­ project ownership was that the department Mott stresses "how important it was that tificates proving their ownership for the of lands translated the staff appraisal report right from the start the Royal Thai govern­ first time." Yves Wong, who was task man­ and other papers into Thai and then widely ment was behind the project. It saw how ager of the second phase, remembers that in disseminated these documents to project proper land titling would encourage more his native Mauritius, "everybody has the staff. Project budgets and work plans were efficient use of land, and it also could see Happy villager receives her land certificate (detail below) tide deed to his or her land" and it is an im­ also drafted and presented in both Thai and the potential fiscal benefits from proper June 27, 1997 7 THE REASONS BEHINDTHE MILLENNIUM PROBLEM er law and order We can save a lot of storage by not " including the 19 l in our ort 1997, and looks at two im: p ortant projects date data fields. I'm sure they'.!! be using cial development more successful. much more sophisti­ cated programs by the year 2000. lesson of the report is that one size or shape of government does not fit all countries, and that history, culture and state of develop­ ment do matter. "By taking us into the insti­ © JOHN ZAKOUR tutional realm, where local conditions, cul­ Countdown to Y2.K crisis ture, history, matter far more than when you are just talking about pure economic policy, it will mean that we will have to take a OOVIRUS COULDWIPE OUT BANK I much more differentiated approach towards t's January 3, 2000. You walk in to the jects depend on systems that are aJready in countries, marrying external advice with MC lobby at 8: 15 on Monday morning, place in our client countries. A project that local conditions, otherwise in this area of in­ still tired from your celebration of the has been going swimmingly could turn into stitutional reform, it's not going to work. new millennium on Saturday, and notice a problem overnight because of the failure 'There were some surprises. There were that it seems a bit dim - the only light is of one small information-system compo­ huge variations within Africa. There is a what is filtering in through the skylight. And nent," Steyer explains. "It's aJready hard to tendency to talk of Africa as a huge conti­ it's very, very cold. You wait for the elevator find technicians to do this kind of work, and nent - [and say] 'well, Africa has these @ to take you down to the Credit Union, but it they are charging a fortune. The Bank is in St Petersburg and (inset) Vorkink problems' - but when you look at the sur­ never comes. So you take the stairs, but the a position to see that governments who cash machine seems dead. You try to call the don't have a lot of money to spend are able vey, you find huge variations." Chhibber was helped by a large number Vorkink helps to J lobby to see if the machine in there is to fix this problem." of people, including "the late, great Michael working, but the phone is dead, too. Then Chris PareI , senior country officer for Bruno", but the bulk of final writing was make Russia's law you realize ... it's the Millennium Time Bomb, the Y2K Dilemma, the Year 2000 Brazil, urges prompt Bank action to avert potential disasters: "In Brazil, uhere are done by a "superb core team" with editing I help from Stephanie Flanders of Financial n many countries, most people know Crisis. The World Bank has shut down. huge systems in place for social security, Times "who helped us bring out the key what they have to do legally to buy a Not likely, says Clem Steyer, head of health benefits ... this problem could cause messages and put them in a way that the house. However, if you live in Russia, ITS's information engineering unit. "We're some real damage. The Bank can and general public might like to read. Most of us the chances are you don't. By the same OK, we're aware of the problem and have it should take the lead on this." Patrice Mallet write in a very Bankspeak way." token, if a court in Vladivostok enacts a under control. But we do need to worry of South Asia's country department for The team came on board last July and law, the courts in Moscow may not learn of about our projects and clients." Bhutan, India, and Nepal is working on a the first draft was ready by December, then it for several months. The problem is that much of the world's regional approach. "Almost all of our pro­ polished and repolished, though Chibber And if you are the senior manager of a software was written years ago, when com­ jects have an information technology com­ says that the final version is "almost as ex­ company, you will spend more than 15 per­ puter programmers used a standard date ponent or rely on technology for monitor­ citing as the first December draft and cent of your valuable time negotiating with format of DDIMMfYY to minimize storage ing or evaluation. We will help our client sharper in its final messages." He is against government officials over laws and regula­ space, which was very expensive at the countries identify their problems, and work extending the work of a WDR, say, over tions. In the end, you may also make a business decision based on erroneous THREETICKINGTIME BOMBS two years: "First, the team would be dead knowledge of what current rules and regu­ SEPT. 9, 1999 - In programs where an expiration date had to be en­ and you would get more of a committee­ lations are. These are some of the hurdles tered, "9/9/99" was a popular way to indicate "no expiration". So a like report, not the rapid-fire freshness of that Russians must overcome every day. monthly payment meant to be made in perpetuity, for example, this." He praises the highly professional A foundation of law is one of the vital would stop. production team backing the authors. ingredients necessary to improving state­ JULY I, 1999 - Bank's FY2000 begins. Or is it 1900 in your division? "They are just excellent. This operation works like clockwork, with everything hood, according to World Development Re­ JAN. I, 2000 -The new milienium•.•WiII your alarm clock go off?WiII right down to the last hour or even minute port 1997. Andrew Vorkink, assistant gen­ your car start? What will happen to your Bank account?Your IRS data? almost." eral counsel and task manager of the legal - Kevin Rafferty reform project for Russia the Bank funded time. The first two numbers of the year with them to decide on suitable measures." a year ago, notes that: 'There are lots of were assumed to be "19". When 2000 ar­ The real problem is that no one is sure of problems with the legal system in Russia." rives, the "2000" will be read by computer all the implications because this is new ter­ FISCAL HOPES But the Bank hopes that the legal reforms it is helping to draw up will lay improved systems as "1900", potentially causing sys­ tem failures or incorrect calculations in ritory. The Bank is not an island, and the Y2K problem could easily transcend its bor­ land mapping and registration." She waxes foundations for economic development. time-sensitive programs. Computers are not ders: bad data from outside systems could nostalgic in recalling that when she left the Russia, Vorkink adds, is the first Bank the only devices affected: most electronic ultimately pollute its 2000-ready ones. project to take maternity leave "I told my borrower which has tried to deal with com­ devices that make use of dates - car igni­ While the Bank's information security successors that I felt like I was giving up prehensive legal reform - "not just draft­ tion control systems, clocks, microwaves, unit is overseeing and coordinating Y2K one of my 'babies' to have another one." ing laws and looking at the judiciary but and even nuclear weapons - could be dan­ readiness Bankwide, Steyer is careful to For Byamugisha today, there is a new recognizing the cormection among differ­ gerously unpredictable. point out that business unit managers are re­ aspect to the continuing work. It is not just ent aspects of the legal system. Passing a Troubles have aJready started. A 105­ sponsible for ensuring that all information finalizing the bringing of all of Thailand law is not enough. It must be enforced, but year-old woman in Minneapolis, born in resources under their control will continue into the land title net, but putting the land [today] Russian courts don't have the clout 1871, just received notice to report for her to function accurately after the change of certificates into computers to cut down on to enforce" what they have enacted. For ex­ first day of school. Norwegian carmed her­ millennium, and that all historical informa­ the storage space. "Physical storage takes ample, judges don't know how to apply ring shipped to Brazil was returned because tion resources will continue to be available. up so much space and whole buildings are new bankruptcy laws because they have computers in Sao Paulo assumed that the "It's up to them to review all of their infor­ devoted to housing records, so that putting never dealt with bankruptcy before. fish, labeled "Sell by 00-05", had been sit­ mation resources and to take action to recti­ them onto computers will be more efficient "If you have a [functioning] legal sys­ ting in a warehouse for100 years or so. fy any problems," he warns. of time and space." tem, you can use it and not take matters into Gartner Group, an information-technology The information security unit has devel­ The publicly acknowledged success of your own hands" by resorting to criminal research finn, estimates the year 2000 date oped a Lotus Notes database to record ap­ the Thai titling project - co-winner of the means, he says. "We have to educate the change will cost between $300 billion and plications and systems and their Y2K readi­ awards for excellence announced in May public and the business community about $600 billion worldwide through 1999. Reuter ness. Business unit managers must ensure - also means that Byamugisha and his new laws and why laws are important in a reported that the US Department of Defense that information on their unit's systems is colleagues have to spend time with other market economy." will spend $1 billion to prepare for 2000. entered accurately. The unit will then issue governments which are clamoring to see if The $58 mimon Bank loan - part of a The Bank is in an enviable position, says letters of understanding, describing the nec­ they can have their own projects. In Laos, $89.4 mimon legal reform project - covers Steyer, because its system developers took essary actions and a timetable for doing be has seen the similar joy of villagers tak­ such areas as legal drafting of economic the Millennium Crisis into account as far them. The database will be the source for ing away the proof of their holdings. The laws, decrees and regulations at the federal back as the 1970s, when loan and credit reporting the Bank's overall Y2K readiness Philippines has asked for Bank aid for a level; classification and dissemination of maturity dates were stretching to the end of to all levels of management. land titling program, though in Vietnam, it legal information; legal education; judicial the century. Getting ready for 2000 may The Bank, whose fiscal year 2000 be­ has not been possible to get a project to reform; and alternative dispute resolution. cost the Bank as little as $300,000, a small gins on July I, 1999, plans to be fully pre­ take off. Peru has asked Byamugisha's col­ "The project's design is appropriate," - if optimistic - sum. pared by the end of calendar 1998. league Wael Zakout to come and see if it Vorkink adds, "but implementation takes He worries, though, about the Bank's For information on Y2K contact Clem too can get help on land titling. time. It's progressing satisfactorily, but it's client countries. "Even if the Bank's own Steyer, x32267, or Robert Hoge, x33192. - Kevin Rafferty slow." - AI Drattell systems are Y2K-ready, many of our pro­ - Lauren Ptito 8 June 27, , 1997 STAFF ASSOCIATION SPECIAL LEAVE RULES CAUSE HARDSHIP T he millwheels of redundancy are grinding again. This time, Special Leave has gotten chewed up in the process. Here's what happened: in the past, the Bank has permitted staff to choose between taking their redundan­ cy payment as a lump sum, or going on Special Leave, which spreads out the redundancy payments over time. Staff on Special Leave, while no longer on active duty, remain nevertheless in the Bank's employ until the Special Leave period Ultimate Frisbee team takes Bank buzzwords to heart expires. In the last redundancy program, 89 percent of staff chose to take special T eamwork ... efficiency ... speed '" flat organizational structure ... shared nllS­ truly share the mission, opportunities are equal for al1, communication is done the ers may not run with the disc, but must plant a pivot foot (as in basketball) and sian ... gender balance ... environmental 'green' way - bye-mail - and the red throw to a tearrunate within 10 seconds. If leave, reflecting the value of this option sustainability ... focus on the field ... men­ tape is nonexistent." the team drops the frisbee, catches it out of to staff who lose their job through no taring ... the buzzwords of the "new Bank" The team is progressive in terms of its bounds, or fails to complete a pass (for fault of their own. are a reality for one small part of the orga­ HR structure, open to staff at all levels and example because of an interception by the The Bank has now decided to narrow nization: the ultimate frisbee team. allowing non-Regular staff to assume lead­ other team), the opposing team picks up the the criteria for Special Leave and grant it The Bank Group has finally "gone ulti­ ership roles. It also encourages mentoring, frisbee and works to score in the other only in exceptional circumstances: med­ mate", having just formed a team - the whereby veteran players like David Cling­ direction. ical reasons; national security; bridging Disc Drivers, a techie name inspired by the man coach rookies like Cynthia Casas. And What distinguishes ultimate from most to a pension or to eligibility for US resi­ knowledge management initiative ~ to in the interest of gender balance, the league other team sports is the fact that it is self­ dency. While we recognize the value of compete in the sport's Washington Area requires that at least two of the seven play­ officiating - there are no referees, even at the exceptions offered, we still find the Corporate League. On June 16 it won its ers on the field at any time must be women. the highest levels of competition. Each. decision narrow and shortsighted. first game (16-14) against the Advisory Ultimate is a non-contact sport played player is expected to make honest calls and We need to remem­ Board, a consulting firm. Ultimate (as it is by two seven-player teams starting at oppo­ respect the calls of fellow players. This ber that many usually called) was created in the US about site ends of a 70-yard field. The object of built-in tmst in the judgement of teammates Bank staff who 25 years ago and is now played throughout the game is for a team to pass the frisbee as well as opponents may even be going are being made the world, prompting speculation that it from player to player, all the way up the one-up on the Compact... redundant may someday become an Olympic event. field, and catch it in the end zone, which The Washington Area Frisbee Club Web were planning "We hope to be an example for the scores a point. The first team to score 15 site is at http://wafc.org. For more infor­ to work until Bank," says team captain Martin Fodor of points wins, although scores do go higher mation on the Disc Drivers, contact Martin they reached the environment department. ''Teammates since a two-point margin is required. Play- Fodor at x39l31. mandatory retire­ ment. Departure from the Bank earlier than planned can cause great financial hardship for the rest of their President is one bean short of prize life - the additional months of pension The Bank's Association of Professional ment training program). accrual during special leave can easily add Accountants (APA) this month has "Now it seems we have some empirical $10,000 per year to a pension for life. proudly announced that it has admit­ evidence that investment bankers Such a reduction in lifetime income is ted a new member to its ranks: Bank make better projections and forecasts clearly a hardship. In addition, expatri­ president James Wolfensohn. than economists and accountants ates for whom redundancy means Although not an accountant, he combined;' quipped an association leaving the US must deal with the received an honorary membership member. stresses of losing a job, uprooting a fam­ from the group's president, controller The APA, which has more than 70 ily, moving as much as half the world Jules Muis. In a way it was a consola­ members, aims to develop profession­ away and then finding a new job. Special tion prize when Wolfensobn feU just al relationships among accountants Leave provides a buffer of time to do all short of the really big one - the full and others interested in accountabili­ of these things. Without Special Leave, jar of beans. ty throughout the Bank and to discuss expatriate staff have only the notice Wolfensohn came within a single bean the latest accounting trends through period, plus the 30 days between termi­ of the winning guess at the associa­ lunchtime meetings, workshops on nation and visa expiration, to undeltake a tion's Jelly Bean Jar Count Quiz dur­ hot topics, and a newsletter. major life move that has been thrust upon ing Staff Week. (The best bean Staff do not need a professional them through no fault of their own. counter was Arshad Toor, who, appro­ accounting certification to join. For The Bank is sending the message to priately, is coordinator of the loan more information, contact John staff that they want to get as many of us department's financial skills develop­ Fitzsimon at x36889. off the books as cheaply and quickly as they can. This does not seem fair to us given that staff eligible for redundancy IFC SOCCER TEAM SHOOTS INTO TERRILL CUP PLAYOFFS have dedicated their working lives to The sun didn't shine, but June 7 turned successful to date for IFC and I imagine for not quite good enough to qualify it for the serving the mission of the Bank. The out to be the brightest of days for IFC's soc­ some to come, as keeping the same group Premier division next season, since only the Bank's decision on Special Leave is not cer team. In the final match of the season, of players together from season to season is top team from each division - Ruby, Emer­ one that will inspire remaining staff to the team had to defeat Legion Francaise to no easy task," said president Keith Defty. ald, Sapphire, Diamond - earns that honor. new heights of accomplishment - espe­ keep its second place in the Washington The team set records this year, with tbe The first round of the play-offs saw IFC cially when people are being made International Soccer League's Emerald divi­ highest place finish in the division (2nd), the beat Internationales, first in the Ruby divi­ redundant for the administrative pUl-pOS­ sion and qualify for the post-season Terrill most points ever accumulated (21), the most sion, to post a first-ever playoff success es of the Bank, rather than being released Cup playoffs. It was two goals up before games won in a season (7), the most con­ with an emotional and sterling perfor­ for poor perfonnance. most of their fans had arrived, and the day secutive wins in a season (6), the most goals mance. As we went to press, IFC was gear­ How these smal1 touches of policy are just got sunnier and sunnier in a 3-1 victory. scored in a season (23), fewest goals con­ ing up for a quarter-fina[ against Red Sea of handled sends a signal to staff. The ''This season will go down as the most ceded in a season (10). Its second-place was the Premier division.Watch this space. cumulative effect of many such small bits of indifference is a giant deficit of .•. CLASSIFIED ... CLASSIFIED ... CLASSIFIED ... CLASSIFIED ... CLASSI credibility and good will. Staff deserve SEEKING APT. Looking for airy, well-lit (read lots teon, short term negotiable. Call Manly, x30284, or $18,500. Call Ross Pfile, x37525 or (202) 945~9863 . better treatment than this. of windows) 1 BRlEffcy wlkitchen and without carpet, Bell, (301) 229-0212 . CAR FOR SALE. 1993 Mazda Protege LX. Sunroof; The Staff Association will do every­ in the city, beginning fall 1997. CalI Radhika, (202) CONDO FOR RENT. NW DC. One BR, wid in unit, alc ; pw; pI; am/fm/cassette; automatic; ruby red; thing in its power to get management to 483-3373. pets OK, walk to bus/metro, pkng avail. Avail. July 15. 69,000 mi.; $8,000. Very good condition. Call Micky reverse this decision to treat staff APT. FOR RENT. Sunny tree-top I BR apt., Kalorama $800/mo. Call (202) 237-6353. Ananth, x37842 or (30 I) 572-4990. Triangle, avail. July 15/Aug. 1. Wood floors, separate HOUSE FOR RENT. Beautiful, newly remodeled 4 cheaply by denying them Special DR, solarium. Channing bldg w/24 hr. security desk. CAR FOR SALE. 1997 Chevy Cavalier LS, only 500 BRl3 BA home on quiet cui de sac. New master BR , Ig Leave. In our view, the degree of hard­ Walk to work, Dupont Circle metro. Call M. Malhotra, family room, deck, double garage. Close to excellent miles. 4 doors, automatic, alc, traction control, ship should be determined by the one x33788 or T. Ehrbeck, (202) 662-3279, for details. schools. just 20 min. walk from W. Falls Church metro amethyst color, excellent condition, must sell. $1,700. being hanned rather than by the one FURNISHED APT. FOR RENT. Chevy and 15 min. drive from town. Location: 2200 No. Call x83489 or (703) 821-0516. ChaselBethesda. IBR, wid, beamed ceiling in LR, pri­ Trinidad St. call Mike Guido (703) 532-3583 or send perpetrating the harm. Management PIANO FOR SALE. 2-yr-old Weber W48 MP vate enclosed garden. Ornamental fuepl., custom e-m to Carl Dutto: ISkdutto@go.com.jo. should continue to give staff the choice built-ins. Classic furnishings. Quiet street, walk to CAR FOR SALE. 1995 112 Isuzu Rodeo, 4X4, V6, (upright) with double protection warranty (10 yrs more regarding Special Leave. full & lifetime limited). Beautiful mahogany. $3,500. Friendship Heights metro and Chevy Chase shops. 20,000 miles. Dual airbags, ABS, alc, pwr windows, $1,075/mo. im.:lude. utils., pkng. Avail. Aug. I; long remote alann, remainder of 5-yr./60,OOO mile warranty. Call Junko, x80l59 or (202) 332-6352. June 27, 1997 9 $1 0 a month offers a sweaty way to fitness W hat's the best $10 value for mid-way. "What on, took classes with one of the most money that the Bank has to we are looking famous fitness experts in the country. offer? Hundreds of supporters of for," explains fit­ Others, like Tim Ryan, who used to own a staying healthy and fit say it's the fitness ness center man­ gym in Arizona, have reached such a level center, where staff can work out to their ager Michael of expertise that they teach classes in pro­ heart's content, either on their own or under James, "is peo­ fessional studios outside the Bank. the guidance of the facility's crack team of ple who under­ Mercedes Hernandez, the Latin aero­ professional instructors, who also happen to stand fitness and bics expert, Lesley Shneier, the ballet be their colleagues. who want to help teacher, Corinne De Jesus, the muscle fit­ With 27 staff members turned part-time other people, ness guru ... each instructor has his or her fitness instructors, the World Bank's fitness who will take a followers. "I develop a personal relation­ center ranks among the top corporate exer­ serious interest ship with some students who ask me ques­ cise facilities in the country using a volun­ in the 30 bodies tions not only about the routine but also teer-employees system. "We might not be in front of about their diet, the shoes to buy, their here if it were not for these 27 instructors," them." What the health," observes instructor Judith Morroy. comments Pam Wiggins, aerobics coordi­ fitness center "Some of them think that teaching an aer­ nator. And, most certainty, if it were not for also expects obics class is my full-time occupation. It's this group of staff who teach for free, the from the instruc­ very rewarding to be considered a profes­ 3,800 members would pay dues much high­ ,rors is that they sional." er than a mere $10 a month. become fitness Verbeeck: a real passion It is so rewarding that it does not matter Being a volunteer, however, does not ambassadors by introducing their col­ James. In exchange for volunteering their if they have to rush at noontime or imme­ infringe in leagues to the world of fitness and health. services, teachers are given the opportunity diately after a long, hard day to be on time any way on Those candidates who apply and pass a to attend refresher classes (often offered by for a class where additional demands will the level of preliminary interview become eligible for a nationally renowned fitness experts), free be made on them. "This has become a real professional­ 1O-week training that focuses on both theo­ access to the fitness center, a locker, and a passion," exclaims Verbeeck. "I started ism expected ry and practice. "I spent about 10 hours a one-time stipend of $200. working out four years ago and became from the week studying," remembers Christina Most instructors take their mission so addicted. Teaching classes was a natural instructors. Djemmal , a new recruit, "between the for­ seriously that all year round they enroll at evolution. I also wanted to give something Candidates mal teaching, practicing, my own workout, their own expense in programs offered out­ back. I like challenging the students, mak­ indeed have and reading ..." While in training, rookies, side the Bank. Costs vary between $15 to ing them sweat. I like to see them smile to undergo as they are called, start teaching classes $35 for a single class and between $200 and when they've mastered a new step." Like such rigor­ with another instructor. Two months later, $1,000 for a workshop. This summer, many of her colleagues, Verbeeck does not ous training having passed the required examinations, Margot Verbeeck win attend an aerobics envision retiring ... not until her body says Dave Vincent (I), Ian Conachy join that many they are on their own. They will, however, convention in California. Bridgetta Ross­ "no more". Verbeeck for a warm-up call it quits get evaluated annually by Wiggins or Sedlak, a former national aerobics champi­ -- Brigitte Aflalo A LONG WAY FROM THE SQUARES OF LATIN AMERICA W hen asked for an opinion on the atrium, most Bank staff exhibit a generic look of bafflement cou­ pled with cautiousness about expressing an remarked, however, that the courtyard was not visible from any building except the E building. "The old courtyard was well used if only opinion or attributing an opinion to oneself. for a short while during the year. There was While some braver souls have come forth a great deal of sentimental attachment to the and expressed views in letters to the editor courtyard," says Jonathan Lyttle of GSD. of Bank's World, many confess that Sphinx­ "Now that it is weatherproof it is adaptable like, the riddle of the atrium continues to for many different uses. The architects con­ elude. Who uses the atrium and how should ceived the atrium space as being rather like it look? What are the uses of this vast open the eye of a hurricane - calm and still, yet space? surrounded by the energy of Bank work," "The atrium is like the village square of he added. According to him, a new commit­ Latin American and European cities - a tee on space use and decor, chaired by Carl place where people can eat, just sit and talk Wessman of GSD, is formulating policies or watch people," offers Ernesto Henriod, and guidelines for uses of public spaces, director of the headquarters construction including the atrium, within the World group. The history of the atrium space indi­ Bank Group. cates that it has always been used as a gath­ "I don't know why people don't use the ering place. "The courtyard that existed atrium more. I come here to read my news­ before was a place where people came to paper and sometimes even fall asleep! Maybe allow Bank staff to determine decor and temporary because the atrium's "look" will eat, especially in the spring and fall. The because its so bare ...", says a staff member of use, according to Lyttle. "The atrium has not be final until the D and E lobbies are fact that it is a covered space now makes it American Express. Another Bank staffer, been built up to an appropriate minimal open. even more useful, don't you think?" says a who requested anonymity, says that the atri­ level - like a home. One picks up things According to Boucard, objects placed in Bank staffer. Many long-term staffers have um is not a good space for parties and func­ along the way to decorate a living space the atrium must be large to be visible. She tions. "During last year's Christmas rather than completely furnishing it imme­ says that since light reaches all corners of party season, we could barely hear the diately," he adds. the floor space, paintings, tapestries and music. Sound is lost in that huge "I can visualize this space turned into a fiberworks are ruled out as choices for art­ space, so I don't think it is very useful sculpture garden with large exotic trees, work. Glass work and other media that are in that regard," she says. "Do you see perhaps even large bonsai [sic]. The seven not damaged by exposure to light and fre­ the floating platform? A band could panels in the atrium, which represent the quent handling, are appropriate choices perform there without worrying about seven continents, can display artwork. I according to her. the sound being lost and staff could personally favor the use of murals, espe­ Current decoration efforts have includ­ enjoy dancing in the after-hours," cially on the long wall behind the panels," ed the placement of tropical trees and flow­ counters Henriod. says Boucard. Another Bank employee ering plants in the atrium. Neeraj Jain of Once the construction in the D imagines the atrium reinvented as a the IFC says, "When I look at those minis­ and E lobbies is completed, the task Disneysque theme park replete with tropi­ cule trees and flowering plants in the huge of maintaining the atrium will be cal flora and fauna, singing birds and atrium, I can only say - nice try! I am also turned over to GSD, says Henriod. maybe even a Pocahontas or two! reminded of that old story about a crow The recently formed Art Committee "If we are going to decorate the atrium, who wears peacock feathers in the hope of under Ismail Serageldin will find we must respect the architect's conception passing off as a peacock. The trees aren't in suitable artwork for the atrium of the space. We also have an imperative to harmony with their environment and seem through juried international competi­ be institutionally acceptable in our decora­ to be yearning for some fresh air and we @ tions, according to Regine Boucard, tion efforts. If we were to place textiles, 'green' human beings are violating their SO; president of the Art Society. without a clear plan, the atrium might look rights by denying them their natural ~ The appearance of the atrium like a carpet shop!" offers Henriod. Any art­ rights." Staff week saw attempt to create a community atmosphere reflects the architect's decision to work placed at the moment is most likely - Y. R. Radhika 10 June 27, 1997 ... LETTERS ... LETTERS .•. LETTERS ... LETTERS ... LETTERS ... LETTERS ... LETTERS ... LETTE REAL MANAGERS LEAD Creative thinking could help keep fish fresh The article ''Who will emerge from the I Bank shake-upT (Bank's World, June 3, I understand that the Bank is concerned about a project in Africa in which local this could be done on a purely home-made basis as well. The p.6) and the interviews seem to equate peo­ ple management skills with "being nice to women raise fish for sale in a Bank­ fish would thus be delivered your staff is not enough in this tough world". financed pond. The problem is that, once alive and deodorized (or not People management has nothing to do they remove the fish from the pond and yet odorized) at the market, with "being nice to your staff', but every­ transport it 16 miles to the nearest market and would remain so until thing to do with leadership, a vision for town, the market value of the fish has, shall their time had come. strategic planning, and the abi]jty to man­ we say, been dramatically diminished. Such a policy is in line with age staff in order to acrueve the company's They are DOA - dead on arrival. the Strategic Compact's client­ established goals, all against an overall What to do about this? Clearly the orig­ centered policy, and with the incentive system very different from the inal Bank project was syndromic of the effort at outreach and front-line one in practice not long ago in the Bank. then prevailing attitude - it simply left out service that is at the heart of the This may sound like theory to you, but an important part of the project, the trans­ Strategic Compact. However, this is what MBA students are taught when portation component. Yet the answer seems given recent events, there is no taking personnel management courses as rather simple. As I understand it, the reason why the same approach part of their core program. All those attrib- women delivering the fish already use bicy­ could not be applied in Wash­ cles for transport. In the US, I have often ington so that Headquarters seen bicycles with very small trailers, often staff could also partake in the with babies in them. An "appropriate tech­ benefit~ of truly fresh fish. In nology" approach would seem to indicate the future, when fresh marlin is that the World Bank make a microloan for on the menu, such an approach the purchase of such trailers, and perhaps of would ensure that they really were fresh. a contract with the Bank to provide this a "bicycle built for two" to pull them if, As to, once again, the important aspect new service. And it would help put both once they are equipped to carry fish, they of appropriate technology, we already have the minds and the stomachs of Headquar­ are too heavy for one cyclist. in Washington, DC, a dense network of ters staff at ease. Then the trailers are rebuilt - instead of bicycle couriers, and the distances are much This is, of course, a very conservative baby carriages they become fish tanks. shorter than 16 miles. As anyone who has proposal. But I would like to feel that it is They could be built out of sheet metal or, seen one of these couriers in action knows, the type of creative thinking that should Mohini Malhotra for advertising purposes, they could be they are by far the fastest moving vehicles advance the ongoing conversation about utes have been sorely missing in Bank equipped with transparent (preferably Plex­ in the downtown area. It is likely that the the Bank's future and its contributions to managers. In fact, it did not seem that it iglas, not normal glass) aquariums sized to Bank would not even have to supply any up developing countries, by illustrating the even mattered up until now. (One would fit the fish, with the market stall location or front capital funds in this case, as most kind of imaginative problem-solving that is recall Mr Wolfensohn's address to man­ other advertising identification attached. courier firms could probably afford a cou­ so looked for in the Bank in this period of agers on that very same subject, based on This would also fit in well with the Bank's ple of baby carriages-cum-aquariums on change. Seriously, why not? staff mail to him, including my own in emphasis on transparency. Of course, all their own as long as they already possessed Patrick W. Murphy wruch I raised the same type of issue and comments. His reply to me was positive, MORE ECONOMIES, PLEASE LET'S KEEP OUR DIALOG SENSITIVE AT ALL TIMES having also gone to B-School). R egarding "Publisher goes to market" (Bank's World, June 3, p.2), as an I n the weeks following the publication of my letter in Bank's World referring to the did colleagues stoop to the use of stereo­ types against my compatriots and me as You call the Bank "a tough world"? Try the private sector. From my brief experi­ accountant, I wish to congratulate you on statues of female nudes displayed in the being prudish and puritaillcal - otherwise ence with the private sector, I don't recall your imtiatives to reduce publishing costs. atrium as being inappropriate in the work­ everyone was respectful of the exchange of any of the managers "being nice to staff'. For years I have been shocked at the way I place, my Bank colleagues have bombard­ opimons being shared. But I do recall most of them used the attrib­ regularly receive publications that I have ed with me their points of view. Many of I am pleased to have opened a dialog on utes listed above, otherwise it just does not never asked for and never read. After sev­ them have expressed their solidarity with this sensitive issue as well as to have stripped work. The management style of Ms Mohi­ eral efforts I managed to stop receiving me and appreciated my initiative (and thick away the perception of acceptance of the m Malhotra (SA Manager of the Year) is Economic Digest, but I am still getting skin) in raising such an unhip view in a objectification of women by displaying more in line than that of the director man­ Finance and Development, which, alas, I public forum. Others questioned the link I depictions of the nude female form in the I ager. The Bank is not an emergency room never have time to read. May I suggest a made between the nude statues and sexual workplace. I am gratified to work in an envi­ where a top-down approach is more appro­ questionnaire to all staff asking which pub­ harassment (one word: objectification). ronment where we can have vastly different priate, precisely because of the emergency lications staff really want? Others simply agreed to disagree with me. views and engage in respectful debate. nature of the business to be conducted. Colin Lyle Only in a couple of lamentable instances A.M. Ruiz-Esparza Gabrielle Rooz BAN'K 'S WORLD MUST NOT STRAY 'I N TO UNHOLY WAYS W e were delighted to see, in the April 15 issue of Bank's World, the review of two books on the Holy See: the importance of the tional subjects. In this last respect, we would welcome any comment that the Director, Exter­ nal Affairs Operations (under whose vice-presi­ one really separate (as was done in your book review) the Church's position on birth control from the wider context of the Church's protection as it requires a majority of the electors, and not merely of the voters) is sufficient only after 30 ballots, requiring a majority of two thirds, have Pope's moral and spiritual witness is becoming dency Bank's World is published, and to whom and promotion of the integral development of the taken place. ever more evident in today's international life, we are copying this letter) might have on this use whole human person, soul and body? All this leads us to the legitimate question and Bank's World would certainly render a good of Bank's World for offensive statements against Likewise, your description of Cardinal whether your book review, while not doing jus­ service to World Bank staff by paying attention a sovereign entity. Ratzinger as the "Modem Inquisitor" is some­ tice to the Holy See and Reese's book, does not to this phenomenon. We cannot hide, however, On the substance of your book review, we what impressionistic. In your review, you wrote end up embracing the "old unholy ways" (if we our deep sense of disappointment (which, we will limit ourselves to that a "better reporter" than Reese (whose work may borrow this expression from your book believe, is shared by many colleagues of ours) a few selected we do not intend to endorse or criticize in this let­ review) of inaccuracy, superficial analysis, and after reading your book review, which, while remarks. Your trite ter) would have made more of his interview with judgmental conclusions, against which the new not saying much about either the Holy See or the criticism of the Cardinal Ratzinger. With all respect, this criti­ World Bank is fighting so hard. two books (and especially the one by Thomas excommunication of a cism could easily be retorted against your book On a final note, we rejoiced in reading in Reese, to which almost the entirety of your theologian (which, review: a "better book review" would have your book review that you were once fortunate review is dedicated), says much about the diffi­ incidentally, is a reflected a better use of the many interviews with in attending one of the Pope's private Masses. In culties encountered by the new World Bank in wholly gratuitous Cardinal Ratzinger available to the public (such the spiritual company of the Holy Father, may getting rid of its old habits. statement, as this as those of Missori of 1985 or Seewald of 1996), we all join in praying that in all our endeavors Let us start from the heading of your book episode is not dis­ and would probably have projected a truer image (including our professional activities at the review: "John Paul's Cruel See". The expression cussed in Reese's of Cardinal Ratzinger, which is far from that of a World Bank) we may always be guided by a sin­ "Cruel See" instead of "Holy See" (in addition John Paul II book), and of the "Modem Inquisitor". (This expression is utilized cere love for the truth and respect for the others. to the reduction of the idea of the Church to that position of the Church on birth control, seems to as an "objective" description in your book Mary Abuzeid. Marta Cervantes. Javeline of a bureaucracy) does not seem to us to be of us to do nothing more than perpetrate stereo­ review, but merely recorded as that of "some crit­ Chansa. Noemi Dacanay. Monique Deheza­ any real help to readers, as it does not allow types. We therefore regret that a good opportuni­ ics" on page 199 of Reese's book.) Buchberger, Rosalinda Digal, Jorge Duarte, them even to consider that the Church (and, con­ ty was missed to address (or at least mention) the Finally, we were quite surprised to find sev­ Adele Flores, Evangeline Ganuelas, Lucy Han­ sequently, its See) is "holy" not because of the wider context within which the targets of your eral inaccuracies in your book review. For exam­ cock, Dina Lirag. Miriam Mirasol, Minerva intrinsic worth of its members, but because it is criticism (with which we disagree) might appro­ ple, you wrote that the new method of papal Naldo, Mayflor Oteyza, Julia Poblete, Maurizio the mystical body of Christ, the Son of God. Nor priately have been placed: can one really separate election allows a simple majority instead of the Ragazzi, Zenobia Raghunandan. Ethel-May is the heading doing any good service to the (as was done in your book review) the need for previous requirement of two thirds of the votes. Saint Fort, Teresa Saldana, Luzviminda Samson World Bank because, by making a mockery of charity towards all theologians alike from the A more careful reading of Reese's relevant pas­ Tatlonghari. Rosa Ana Sarmiento. Corazon the official name of a subject of international wider context of the defense of the deposit of sages on pages 86-7 and 95 (or, even better, of Solomon, Helene Stephan, Salome Torrijos, law (which, as such. is on a foot of equality with faith and the inherent right of all faithful to an the primary sources - which are not secret ­ Marie-Claire Tsang Kwong Chip, Ephraim the World Bank), it is an offense to the funda­ integral and truthful presentation of this deposit on the methods of papal election) reveals a dif­ Ugwuonye, Lydia Vicente, Mario Antonio mental right of reputation and good name that of faith (and even more so when the theologians ferent reality. In fact, the simple majority (which Zelaya. Endorsed also by: Miriam Farfan (IMF) belongs to the Holy See as to all other interna­ in question are also ordained ministers)? And can Reese more correctly calls "absolute" majority, Solita Wakefield (IMF). June 27, 1997 II ... OPINION ... OPINION ... OPINION ... OPINION ... OPINION ... OPINION ... OPINION ... OPINI LETTER FROM HEAVEN and elsewhere, I don't need to tell a Bank ond world war; it was vital at crucial stages readership of the problems that remain. of the development of Japan and the tiger Nor, I trust, will either the Bank or its economies of Southeast Asia (which are the Minil11alists president think I am merely trying to ingra­ tiate myself with your institution if I take the opportunity to welcome this year's lion economies I often wonder, by the way?). Communism was a disaster, but, as World Development Report. World Development Report emphasises, the deserve There has been a long and rather tedious debate about the role of the state since I myself left it. For myself, although some­ collapse of the fundamental social infra­ structure in Russia has also been a disaster. What a terrible irony of history it was that times travestied by people arrogating to the preachers of the "minimalist state" were Dante's themselves the term "Keynesians" (there are no intellectual property rights in this place), I have never believed in the slogan in the ascendancy at the time Communism finally gave up the ghost in Russia. Do those Chicago boys ever feel any sense of "public sector good, private sector bad". shame - or is shame a minimalist concept Inferno My mission was always to employ the public sector for the good of the people as a whole, and use public goods and policy to too in their moral vocabulary? Critics of aid were right to warn of the dangers of corruption, but they overstated make up for private sector deficiencies. their case. As World Development Report Communism was abhorrent to me ­ points out, corruption breeds inefficiency O ne of the obvious benefits of liv­ president James D. Wolfensohn was recent­ indeed it was in order to save the world and impedes investment. Corruption gives ing in Celestial Heights is that we ly to be heard giving lectures on the same from Communism that I fought to make government a bad name. But the minimal­ can view events on earth with a evening in London, England, and Geneva, capitalism more efficient. But, equally, "the ists who proceeded to argue that all aid was certain sense of detachment. News travels Switzerland. "Why, it's simply not possi­ minimalist state" was, to my mind, a bad and wasteful deserve a special place in fast, as I was trying to explain to Albert ble," observed Bert. "Oh yes it is," said I. derisory and dangerous concept. Dante's description of that part of the after­ Einstein in the Ambrosia Bar the other "People think nothing of having their three You can imagine, therefore, with what a life that is a long way from where I now dip evening. (We were taking advantage of the main meals of the day in three different particularly wry sense of detachment - I my quill pen. (Sorry if I occasionally lapse Eternally Happy Hour which the Great countries on earth these days." don't know exactly how far detached we into circumlocution. It helps to while away Barman in the Sky has just introduced up "But I thought Mr Wolfensohn's mes­ are up here: Bert is working on some new eternity.) here, offering very keen prices.) sage was that the greater part of the world theory of distance - I observed -the antics As I look down on the world from my Nevertheless Albert, or Bert as we call could hardly afford one meal in their own of various economists, some of whom even great height, I detect a happy outburst of him affectionately, could not quite under­ country," snapped the Great Relativist, won the Nobel Prize for preaching the puta­ common sense on the subject of the appro­ stand how, in early June, your ethereal cor­ bringing me to heel, as it were. On reflec­ tive virtues of the minimalist state. priate mix of public and private sector respondent was in possession of the salient tion I felt Bert was right to chide me. We in I am delighted that your Joseph E. activity. It's a subtle business, a lot more parts of World Development Report 1997. the Bloomsbury Set lived well, and proba­ Stiglitz has concluded that: "Most impor­ subtle than the likes of your Mr Newt Gin ~ Poor Bert! He has lived such a sheltered bly took a lot of things for granted. All I tant, we now see that markets and govern­ grich seem to appreciate. death. He seems unfamiliar with the con­ can say in my defence is that, as an econo­ ments are complementary: the state is Common sense? I should like to sign off cept of the "embargo", and the fact that mist, I saw my role as trying to persuade essential for putting in place the appropriate by reminding you of Paul Samuelson's news organisations often release docu­ governments and powerful individuals that institutional foundations for markets." observations on the subject: "Common ments wen before official publication time. good government could, in due course, It seems obvious, but sometimes, as Bert sense economics may indeed be all that Now, I confess, I do not myself surf the allow the vast majority of the world to live and I found in our respective spheres on anyone must use in the end. But it takes the StellarNet. But some of my agreeable well. earth, labouring the obvious can be a life­ most uncommon sense and wisdom to young companions here have arrived pre­ How optimistic, and how disappointed time's work. My own essential insight was know just which part of the filing case of maturely with all the technical skills one we were! While the standard of living has that you could only cure the unemployment muddled notions that men call common might expect from the modern young, and improved remarkably in the advanced problem by giving people work. .. sense is relevant to a particular problem." they keep me well informed. industrial countries since 1945, and great The state was important in putting the Good day - and night. They told me, for instance, that Bank strides have been taken in Southeast Asia European economy on its feet after the sec­ -KEYNES IS IT ART ORA BABY SHOW? R egine Boucard, the president of the World Bank Staff Art Society, marvels at ''the power of art to set people talking and arguing." She is right: fresh controversy has bro­ ken out over this year's exhibition, which appears under the title ''Time Out: Reflections". The argwnent is not about the ball of money, which is the first object just inside the MC atrium, a huge caged globe of banknotes. For the information of anyone with sticky fingers, they are all fakes, even though the artist Sohayla Vafai spent more time getting permission from more than 100 countries to copy their money than she did in putting together her work of art. Boucard thought that some people might make a fuss about a display of money in the Bank. But instead the critical attention revolves around paintings of a small naked child whose face is not shown. Morallina Fanwar George writes that: "I am not debating whether these are good pieces of art or not. I understand from professed art critics that these are excellent pieces of work. My concern stems simply from the fact that children are easy prey for all forms of exploitation. As a mother of young children, I can't help being concerned about what image of children these paintings may evoke." George sug­ gests that such pictures should be shown privately, not publicly in the main Bank entrance hall. Other have been more outspoken complaining that it is not art but soft porn, and a temptation to pedophiles. Sister Wendy Beckett, the Carmelite nun who is star art critic of BBC television, has said that art of the naked human body can be a song of praise to God's creating genius, a view echoed in an e-mail to Boucard in which a visitor to the Bank praised artist Sophie Chardonnet's baby paintings as reminiscent of Michelangelo and Caravaggio, "the pure, innocent and beautiful worlds of cherubs-human beings, transcending the bounds of everyday's drudgery and life." For Chardonnet herself, wife of Bank econ­ omist Laurent Msellati, painting her son Oskar was obviously a labor of Jove. She notes that Oskar himself proudly recog­ nizes himself and declared "That's me" when he saw the fin­ ished works. The paintings of Oskar have won high critical acclaim. Bank president James Wolfensohn declared them to be "wonderful", Sophie Chardonnet (above) proudly and Chardonnet herself was the first prize winner from last shows off one of her larger than life­ year's art exhibition, chosen by a jury of museum directors and sized paintings of baby Oskar; while artists. Nevertheless, for this very amateur critic, the exhibition Sohayla Vafai climbs inside the cage to has too many naked babies, 11 larger than life canvases, includ­ put the finishing touch to her globe of ing a triptych, plus another nine drawings and preliminary world banknotes. sketches. When there are only 33 paintings on view, Oskar is surely being overexposed. - Pictures and text by Rafoto 12 June 27, 1997 KNOWLEDGE FOR New bronze statue celebrates victory over riverblindness A BETTER WORLD By Lauren Ptito - to be unveiled on June 27 in to be involved, even in a small African countries, and another By K~vin Rafferty in Toronto the MC atrium - will serve as way, in It his wonderful project is attacking the p, r oblem in 19 THE LARGER-THAN-LIFE both a monument to the success that alleviating suffering for so others. KOFI ANNAN, the United bronze statue of a blind African of efforts to eradicate many people," Wallen told The Bank, the UNDP, WHO, Nations secretary general, called man being led by a young boy riverblindness and a reminder Bank's World from his Juneau Merck & Co., Inc. and other that the studio. development partners will sign on the World Bank to join hands work is not The Bank is part of a global a declaration at the unveiling, with governments, the private sec­ over. Enti­ partnership to eliminate calling for the elimination of the tor and civil society to "form a tled "Sight­ riverblindness (known in med­ disease by 2007. The occasion global partnership for informa­ less Among ical circles as onchocerciasis also marks the 10th anniver­ tion." He was speaking at the sary of Merck's decision to Miracles" , and in Africa as the lion's opening on Sunday in Toronto of the statue is stare), a condition caused by donate Mectizan® - a drug an ambitious international meet­ the work of parasitic worms, transmiUed which kills up to 95 percent of ing on spreading the global Alaskan by blackflies, which cause a larval worms with just a single knowledge revolution to the fur­ sculptor variety of painful symptoms, dose - for as long as it is need­ thest comers of the earth, especial­ R.T. "Skip" @ culminating in blindness as the ed. It is expected that a billion ly to the poorest. ~ WaUen. worms reach the eyes. One free tablets, with a value of hun­ "The great democratizing § "I' m ongoing program has virtually dreds of millions of dollars, will power of information has given us The statue in its new home very proud eradicated the disease in 11 be distributed. the chance to bring about change and alleviate poverty in ways we cannot imagine," Annan declared. "With information on our side, IDA down but Bank operations strong with knowledge a potential for By Kevin Rafferty He continued: "We are still try­ led us to ask for that money, then not we signed a few extra loans all, the path to poverty can be ing to analyze the reasons for it. [I clearly when we are not delivering here and there. reversed. The capacity to receive, MANAGING DIRECTOR Gau­ expect] that it will be as much for it, we are not fulfilling it. It is not "In general, I find what has download and share information tam Kaji delivered a feistily bull­ country situations and project spe­ a question of dollar targetry." happened in operations in the last ish report on the Bank's lending cific reasons as it is due to change. Kaji then elaborated on the year very heartening, both in operations in the fiscal year that is Africa accounts for only half of it performance of the Bank's opera- quantitative but more important in about to end. "Let's get this qualitative terms, quality of port­ straight," he told Bank's World, folio, quality of country assistance "IBRD lending is not down. It is strategies, quality of projects going to be as much as last year. In being brought forward. You will fact, in terms of the number of find that we have managed to projects, which is the real measure clear up the backlog of implemen­ Annan: fighting poverty with knowledge of the work people have done in tation completion reports." this Bank, it is significantly up. Kaji said that the spate of loans through electronic networks; the "So the idea that this institution in the last few weeks as the fiscal ability to publish newspapers has come to a standstill and it is all year comes to an end, including a without censorship or restrictions; due to this change is nonsense. $885 million package of loans to the freedom to communicate Look at anything - disbursements Russia, $550 million for Romania freely across national boundaries are up, and this is not because of and $400 million for China, was -these must become fundamen­ adjustment loans, which have gone part of the normal end-of-year tal freedoms." down. We have done more country bunching. "Ever since I joined the The very fact of the Toronto assistance strategies than we did Bank 25 years ago there has been meeting is proof that the World before. We have improved our a bunching season. What we are Bank is already at the vanguard Kaji: Bank has much to be proud of portfolio. There are too many facile seeing is something that we have of efforts to deliver the knowl­ statements being made that lending [the drop]. We are concerned. tions: "It is important to get the always said we will address and edge revolution. The three-day is down." Clearly we need to make a much right perspective, and [ am very never managed." He complained meeting, "Global Knowledge Having made this challenging greater effort and to be more inno­ proud of our operational staff for that "People get hung up on lend­ 97", was called to find ways to opening, Kaji did admit that in vative. There are countries in what they have managed to ing numbers. Any year you will narrow the gap between rich and one significant area of the Bank Africa which have worked hard to acheive, and we would be doing a always find that there are six, poor, on the principle that knowl­ Group's work, lending is down. get macro stability and take signif­ disservice to their efforts if we eight big projects, each of which edge capital is just as important "Yes, there is a drop in one area of icant adjustment measures, which accept simplistic comments that may be worth $300 million to as financial capital in economic lending, and that is IDA. IDA is should permit us to be more bull­ everything is down. I don't think: $500 million, and whether you development. down, quite substantially." Some ish for lending for infrastructure we should be measuring ourselves get everything done on them to Co-hosted by the Bank and the early estimates say IDA commit­ and social services. only on lending and I am trying to take them through to the board or government of Canada, GK97 ments may be down by more than "We cannot continue to have a get people out of that habit. If you you find that some conditions are differs from traditional plain $1.5 billion on the original $6.64 shortfall on IDA. After ali, we go look at what's happening in not met and you have to hold it vanilla development conferences billion budget plan. Kaji did not out and ask for this funding from Africa, disbursements are up, back, can give you a swing factor in its wide range of government, give figures, but spoke of a donor countries on the grounds of meaning that there is more hap­ of $2 billion without batting an corporate and NGO participants "roughly billion dollar drop". need, and if there is a need which pening on the ground, whether or eyelid." (from 124 countries, 500 of them from developing countries, 30 percent of them women) and its complexity. There are seven dif­ BUDGET ALLOCATES EXTRA FUNDS FOR FRONTLINE ferent "tracks" of meetings going By Lauren Ptito pact was approved by the board, He also pointed out that cost paper (a whopping $30 million per on simultaneously, tackling such and even then management savings promised in the Compact year), making better use of space subjects as empowering the poor "THE NUMBER ONE priority changes throughout the Bank led to are built in to the new budget, even (the Bank has 350 square feet of with knowledge, the role of the in this year's budget was getting a degree of uncertainty. And, though the KPMG cost-effective­ space per person, well above the state, and distance education. A resources back to the front line - despite the tight time frame, "we ness review has only just reached industry average), and strengthen­ "virtual conference" is also going getting money back to the country wanted to make the the end of its diag­ ing and using client capacity (in on, thanks to the Internet and programs in the regions," strategic process more con­ nostic phase. "We procurement and budgeting, for videoconferencing. resource management VP Mark sultative," he added. weren't waiting for instance). Both Annan and Bank presi­ Baird told Bank's World. The "It was very diffi­ KPMG. What we The design phase of the review dent James Wolfensohn pointed amount includes some funding for cult, but I am very want from the (phase II) - scheduled for com­ out that it was appropriate that the the programmatic priorities set out pleased with the review is some vali­ pletion by the end of August ­ meeting was being held in Cana­ in the Strategic Compact, includ­ result." He reserved dation of what we will bring clearer estimates of da, which had come in at the top ing social analysis and work on special praise for the Budgeteer Baird had assumed, and expected savings. Actual imple­ of UNDP's human development rural development, the financial planning and budgeting depart­ options for realizing those savings mentation will depend on the out­ index for four years in a row. sector, and corruption. The ment: "What PBD did for this is in a sustainable manner," he come of board discussion some­ Wolfensohn stressed that develop­ regions will receive $56 million fantastic. PBO is one of those parts explains. For example, the review time next October. ment cannot be achieved with more than last year, a rise of just of the Bank that gets dumped on by identified a possible $15 million Although the greatest changes money alone: "It requires partner­ over 10 percent. everybody because they're always yearly savings through informa­ are likely to be seen in FY99 and ships and people and knowledge Baird noted that drawing up the in the middle of these budget tion-technology improvements, a FYOO, "we will not wait for FY99 and innovation, people prepared budget was an especially daunting debates but, having seen this for the conclusion consistent with the to implement good ideas," said to listen and learn from each task this year, since it wasn't until first time, fIrsthand, I think they've Compact. Other possible savings Baird. ''The FY98 budget is flexi­ other." March 31 that the Strategic Com- made a fantastic contribution." could come from cutting down on ble."