58070 VOLUME 9 / NUMBER 2 · FEBRUARY 1990 A Children's Project in Senegal-page 12 · IDA: Priorities VOL91 N02 FEBRUARY 1990 for the 1990s In this Issue: Articles by Ernest Stern Senior Vice President, Finance, and Chair, IDA negotiations 2 IDA: Priorities for the 19908. The ninth replenishment is agreed upon. 4 Lending the Af/radl a Hand. EDI helps Tanzanian women increase their family income. O n December 14,1989, a complex ne gotiating process lasting over 15 months culminated in an agreement on tries. In contrast, the European Commu nity (EC) allocates about half its conces sional resources to the poorest coun 6 And the Winner Is... At long last, the the 9th replenishment of the Interna tries. The successful replenishment of resu~s of our Sexist Language tional Development Association (IDA). IDA is essential, therefore, to maintain Umerick Contest. Thirty-one donor countries agreed to ing effective support of the development 7 Taking Care of Business. How to get provide funding of SDR 11.68 billion and adjustment programs in these coun along with contractors. (about US$15 billion) to cover opera 8 Finding a Place Called Home. tries. tions in the fiscal years 1991-93. To Over the last two decades, the struc Whether you're renting or buying, the Housing Office should be your first gether with the repayments of earlier ture of concessional aid and IDA's rela stop. IDA credits, total resources available for tive importance have changed signifi 12 Special Greetings from Senegal. IDA lending will reach SDR 13.1 billion cantly. After growing rapidly in the Students in Dakar are taking brush in (about US$17 billion). This represents 1970s, the share of multilateral institu hand with surprisingly beautiful resuhs. an increase of about 25 percent in dollar tions in concessional assistance stabi 14 Country Funds for the Developing terms over IDA-8. More than 50 coun lized at about 20 percent over the 1980s. World. IFC has been involved in tries, with a total population of over 2.5 more than 20 emerging markets. Of the three main sources of multilateral billion people, are eligible to benefit aid-IDA, the U.N. and the EC-IDA and from these resources. Departments the U.N. each account for about one The replenishment agreement in third of the total, and the EC funds, 10 On the Record. Parvez Hasan on volves important changes in the relative which include the European Develop World Bank operations in Eastern contributions of donors. The share of Europe. ment Fund (EDF), provided for under the U.S. declined to 21.6 percent, and the Lome agreements, have recently 16 Staff Changes the shares of Saudi Arabia and Kuwait 18 Staff Association. Of Sailors and risen to about one-fourth of the total. were also reduced. On the other hand, a Fine Tuning... The share of Lome funds is expected to 19 Around the Bank number of donors either increased their continue to grow with the recent Lome 19 Letters to the Editor shares or made special contributions. IV agreement to increase funding to the 21 The Observer. The Last Word. Japan played a central role in this re EDF by 25 percent in real terms. The Af 23 Answerllne plenishment. Its special contribution of rican and Asian Development Funds SDR 240 million, in addition to its regu have grown rapidly since their establish Cover lar share of 18.7 percent, served as a ment in the 1970s and now account for challenge to other donors to provide Cards hand-painted by Senegalese close to 10 percent of multilateral aid. matching additional resources. Other students illustrate their concern for Although IDA is still the largest chan donors who increased their shares or protecting nature. Page 12 nel of multilateral concessionallending, made special contributions include Fin land, France, Austria, Spain, Italy, Ire it has barely grown in real terms since land, Korea and Turkey. The Federal Re the mid 1980s. Real resources declined public of Germany and the Netherlands sharply in the IDA-7 replenishment; they reduced their shares but made special were about restored in IDA-8. IDA-9 ap contributions equal to the reduction in proximately maintains the value of IDA their shares. Switzerland, although not 8 in r,eal terms. One reason is IDA's size, a member of IDA, agreed to increase its which makes it the largest single ele ment in the aid budgets of many donors. \ The Bank's Wor1d is published monthly in support of IDA-9 by close to 40 percent. Washington, D.C.· by the Media and As alternative sources of concessional I Communications Division of the World Bank IDA in the context of international for all employees and retirees of the World aid have grown in competence, competi Bank Group, 1818 H St., N.W.· Room E-8045. aid flows tion for limited budget funds has be Washington, D.C. 20433. IDA is the largest single source of aid come more intense and program' content Thierry Sagnfer. Editor Jill Roessner. Associate Editor to the poorest countries, providing has become an increasingly important Morallina Fanwar-George. Editorial about 20 percent of the concessiona ~ factor in donor decisions on the level of Assistant funds they receive. Ninety-eight percent support to IDA. This has been aggravated Bill Fraser. Designer of IDA's funds go to the poorest coun by the fact that, for the last 15 years, the share of GOP allocated to concessional tutional development, and women in de Management Assistance Program activi assistance has been stagnant in the DAC velopment, stressing that these pro ties in its lending programs. countries and has declined in non-DAC grams must be integrated with efforts to A critical aspect of the discussion of countries. Total aid has declined by reduce poverty if progress is to be sus environmental issues was increasing ac about 2 percent in real terms over the tained over the long term. cess to environmental information about 1980s. These developments make reach specific projects and programs and on ing agreement on a substantial funding Adjustment programs promoting public participation. The Dep for IDA a more challenging task with The discussions clearly indicated a con uties noted, with approval, progress al each replenishment. sensus that IDA should continue to playa ready made. A new operational directive While the size and burden-sharing ar central role in developing and supporting requires that for projects with signifi rangements for the re adjustment pro cant environmental aspects, Environ plenishment are essen grams. There also mental Assessment (EA) reports be pre tial aspects of the nego Over the last two was broad agree pared in consultation with affected tiations, increased at ment that invest groups and relevant NGOs, and submit tention was devoted to decades, the structure of ment projects ted to IDA as part of the appraisal pro reviewing IDA's perfor cOllcessional aid and should continue to cess. The Deputies recommended that mance and discussing be the mainstay of the completed report be made available directions for the insti IDA's relative inlportance IDA's programs. It by the borrower to such groups and, at tution. At each IDA re was agreed that ad that stage, also to the Executive Direc plenishment, the Depu have changed justment lending tors so that they would be informed of ties prepare a report significantly. should stay at its any public debate which might ensue in which outlines their current level of volving IDA projects. policy recommenda about 25 percent. tions to guide IDA man The Deputies were Allocation of IDA resources agement in adapting to changing needs keen to ensure that fruitful collaboration Since it was well understood that the in the borrowing countries and chang between IDA and the International Mone needs of the low-income countries for IDA ing expectations of the donors. tary Fund continue to be given adequate funds outstrip the supply at any feasible re attention in the design and implementa plenishment level, the criteria for alloca The role of IDA tion of adjustment programs. Acknowl tion ofIDA resources received a lot of at The policy discussions for IDA-9 edging the achievements in this area, tention. While the Deputies endorsed the started with a review of the evolution of they called for continued progress to im continued use of existing criteria: need IDA in the 1980s. The Deputies strongly plement agreements already reached. (relative poverty, country size and lack of supported IDA's basic strategy of empha creditworthiness) and the capacity to use sizing a resumption of growth and in Environmental activities resources effectively (performance), there creasing the efficiency of resource mobi Environmental issues, which have was general agreement that performance lization and use. Three program areas moved to the fore in most donor coun should be given greater weight. But it was were identified for even higher priority tries, received a great deal of attention in emphasized that IDA should not focus ex in the future: poverty reduction; support the negotiations. The Deputies urged clusively on macroeconomic issues as a for sound macroeconomic and sectoral IDA to accelerate efforts on the environ measure of performance, but should also policies; and environmental activities. ment in lending operations, country dia take account of other aspects, such as logue, and with regard to global or re human resource development and poverty Poverty reduction gional initiatives. For the future, it was reduction. Poverty alleviation is an area to which also agreed that IDA should strengthen its dialogue with non-governmental or Performance IDA has given particular emphasis in the past, and the Deputies agreed that this ganizations in dealing with environmen It was agreed that performance should activity should be further strengthened tal matters. continue to be a key determinant of allo in the future. There was general concern The new "Operational Directive on En cations to individual countries to ensure that the focus on poverty reduction may vironmental Assessments" was wel that scarce resources go to those coun have suffered in the efforts to restruc comed as a significant step in ensuring tries that can use them most effectively. ture economies and deal with debt prob that IDA lending operations support ap Performance should include three main lems. The Deputies emphasized that, propriate action on the environment. components: sound economic manage while continuing to focus on the poorest The discussions stressed that Environ ment; efforts toward growth with equity countries and poorest groups in these mental Issues Papers and Environmental and poverty reduction; and efforts to countries, IDA should give increasing Action Plans are essential tools for ad ward sustainable long-term development. weight to effective commitment to pov dressing the major issues in the country In countries with weak performance, erty reduction by governments in the al dialogue. The Deputies also urged IDA to it was agreed that IDA operations should location of its resources and in the pol continue to participate actively in the be limited. While there may be a ratio icy dialogue. The Deputies welcomed evaluation of global policies through, nale for maintaining a core program in increased attention to reducing the rate among others, strengthened support for most circumstances, in countries with of population growth, improving health, the Tropical Forestry Action Plan and im serious problems of performance, lend nutrition, education and training, insti proved integration of the Energy Sector ing should be limited to the minimum THE BANK'S WORLD / FEBRUARY 1990 3 necessary to maintain the policy dia logue. Women Entrepreneurs in Tanzania As part of their heightened interest in Trained to Mind Their Businesses country performance, the Deputies were eager to sharpen procedures for assess ment. Thus, it was agreed that IDA's Board should regularly review the devel opment strategy of IDA borrowers to en Lending the Miradi sure that credits are approve9 in an ap propriate policy context. Documentation should be prepared for Board delibera a Hand tions to cover such matters as IDA's as sessment of performance, country lend ing strategy and priorities, and possible by Maurizia Tovo need for IDA-supported adjustment. The place: A community training insti tion, learning by doing, taking many Needs tute at the foot ofMount Kilimanjaro, small steps: research, act, evaluate, ad near A rusha, Tanzania. just, and act again. The project is a part The IDA Deputies endorsed a contin The time: July 1989. nership between EDI and Tengeru Insti ued focus on the poorest countries and tute, and, once it's over, Tengeru will be eligibility criteria will remain un able to continue the effort on its own. changed. Given the certainty that re sources will be scarce in relation to needs, there was considerable delibera T he night before, my strongest urge was to run away. Almost nothing seemed to be in place: only six out of 26 Tengeru's job is to train Tanzania's community development workers, who tion on regional allocation. The donors participants had arrived; the guest are front-line extension agents with a va had to grapple with the delicate balance speaker had canceled; transport was un riety of responsibilities, ranging from vil between the need to continue support certain; and there was not enough lage construction projects to child care for adjustment programs in Mrica and money to pay for food. and nutrition. One of their responsibili the potential funding requirements of The next day was a miracle. By 11 ties is entrepreneurship development. It countries in other regions which have re a.m., we were all in the seminar room as is one that is seldom carried out, in part ceived relatively less IDA resources while a substitute guest speaker opened the for lack of skills and knowledge, and be achieving comparable performance. It seminar. After so many months of hard cause many community development was finally agreed that the past practice preparatory work, it was really happen workers are not well aware of their re of limiting allocations to China and ing. In my imagination, I went around sponsibility to support local business ef India to 30 percent of total resources the room kissing the 26 participants who forts. Even those who have the knowl will be continued and the allocation for had arrived at the little Tengeru Commu edge, skills and commitment face a Sub-Saharan Mrica will remain at 45 to nity Development Training Institute for powerful deterrent-lack of transport. 50 percent, providing performance con our pilot seminar on Entrepreneurship Our first step was to identify the train tinues to warrant. But it was also agreed Development for Women. ing needs of both village "business" that allocation should be on the basis of women and the extension agents. For universal criteria, including perfor Agreement with EDI this purpose, two small surveys were con mance. Furthermore, the allocations It all began in June 1988, when the ducted, one for each group. now planned are based on the current Italian government signed a funding Project becoming theirs group of borrowers. It was understood agreement with EDI to carry out a proj that if currently inactive borrowers in ect in four Southern Mrican countries Involving Tengeru in the training Asia become active, or if new members with the aim of helping poor women in needs assessment was very important: by with significant requirements join, man crease their family income. The ap going to the field, analyzing the data and agement should consider a reallocation proach was to train extension agents to debating their implications, the project from all borrowers or borrower groups. assist women to run their tiny busi was becoming theirs. In addition, the The recommendations of the IDA Dep nesses, known in Thnzania as miradi. In survey ensured that our starting points uties set an ambitious agenda for IDA India, this approach has produced encour would be the actual problems women en and its borrower countries, and re aging results, but such imported methods trepreneurs and community develop sources have been provided generously have seldom worked well in Mrica. ment workers faced, not a set of sophisti to meet these objectives. The successful From the start of the project, we de cated concepts predigested by foreign conclusion of the replenishment negotia cided we needed an indigenous ap social scientists. On the basis of the find tions should be a source of great satisfac proach, developed in Mrica by Mricans ings and of many discussions, the Ten tion to the donors and to the IDA mem for Mricans. This is easier said than geru faculty, helped by two superb con bership generally. Taken together with done. There is always the temptation for sultants, developed a curriculum and the recent Lome agreement of the EC, "us" to tell "them" what to do, no matter training materials. they assure an increase in much needed how good our intentions. That's why we So at last, many months later, we were concessional funding for the poorest adopted an action research approach, ready to try things out. The seminar countries. Ell working together to find the best solu began with a surprisingly successful ice 4 THE BANK'S WORLD I FEBRUARY 1990 Poultry business in were absorbed by their work. Sometimes Lomela, Arumeru District, the trainers helped, or just enjoyed the run by a group assisted by dress rehearsals of the participants' pre one of the participants. sentations. Those playing village women dressed in kangas and changed them when playing other characters, while the man playing the village leader looked properly dignified. Mter the fun of creating training ses sions came the hard reality: how all this planning could be put into practice with out resources. If village women attend training, for example, they will not have time to cook, so someone has to be paid Photo by Gabriella Rossetti to cook for them. If bank officers come to explain how to obtain credit, they will breaker game which one of Tengeru's The stories collected, and later trans have to be fed as well. What about the youngest trainers had adapted from formed into short case studies, are often paper for posters? If some of the women India. Participants and trainers relaxed funny and sad at the same time. They and the atmosphere became friendly and want to take notes, what will they write tell of the desperate struggle of women informal. The young trainer continued on, and with what? to provide a little cash for their family, of her session with a large smile, opening a the naivete with which some go about it, We had not anticipated these prob discussion on the role of women in Tan of the daunting obstacles they have to lems. So we decided to give each partici zania, using large poster drawings. By overcome. pant the equivalent of $70 to spend on the end of the day, even the shiest The short case studies became the back their mini programs-due reward for women participants were speaking up, bone of the second two weeks of training their exercise in planning and budgeting. and men sometimes had a hard time get in September. This time the challenge to Now the community development ting a word in edgewise. participants was greater: after having workers are back at their posts. Tengeru learned the basics about entrepreneurship, will go out to assist them run their first Interactive, cooperative style and understood how the concepts could be program and see how those 70 dollars The morning set the tone. Participa applied to women's miradi, they had to stretch. This month, we'll be getting tory training, which seemed an unlikely become trainers. Thanks to the case stud back together once again to share suc prospect, was happening after all. Teach ies, it was all so real that participants put cesses and frustrations, to learn from ing in an interactive, cooperative style their heart into preparing their own each other, to plan better training. Learn was perhaps the biggest challenge for mini training sessions. ing by doing, taking small steps: re Tengeru's faculty, accustomed to the tra Our worries about participatory train search, act, evaluate, adjust, and act ditionallecture method, with each ing were a distant memory. Participants again. BIll trainer working in isolation from the others. For some, it was a struggle to give up A Shop at Pasu Market the distance between themselves and This is the story of a group that was never able to register. The shop sells basic their students. commodities (soap, cooking fat, cigarettes, toothpaste, pens and pencils, detergent, For others, the problem was "perform etc.). A National Women's Organization (UWf) branch started it in 1983, using the ing" in front of their colleagues and ac contributions of 300 members. cepting their contributions. The main problem they face is lack of goods. The reason they cannot get goods is The seminar lasted two weeks, during that they are not registered as a cooperative. But, in order to be registered, they need which participants learned about differ a Cooperative Officer to audit their books. "We have written so many letters to the ent aspects of entrepreneurship through Cooperative Officer, but he never came," the women said. "Maybe he could not come games, exercises, role-playing, and because the shop is not yet registered, or because our capital is too low, or because lengthy discussions. Then it was time to there are too few Cooperative Officers ... " go back to their work, to find out if what They keep a record of daily work, but claim they don't know whether they're making they had been learning made any sense or losing money. They feel they are losing, since they have only three to 10 customers outside the classroom. a day. How about closing the shop? Impossible, without calling a meeting of the Tengeru faculty, accompanied by one members. But the meeting cannot be called unless the books have been audited. The last meeting was called in 1984. of the consultants, joined the commu In the same little market are three other shops selling similar goods, and right next nity development workers at the villages door, another UWf shop opened in 1986. to see women's miradi in action, and all What about other projects? The women are too busy at home to have time for any together-Tengeru faculty, community other business. "The only solution would be to fill the shop with goods: the shelves development workers and entrepre are almost empty now ... " neurs-discussed the problems and achievements of each group of women. THE BANK'S WORLD I FEBRUARY 1990 5 And the Winner·Is ··· by Thierry Sagnier L ast November, we announced a Sex ist Language Limerick Contest dedi cated to helping Bank Group staff avoid But this order you'll say is reversed In "Ladies and Gentlemen "-even worse! Other contributions included a second entry by Steve Ettinger: The Bank manager who'd been taught the use of sexist language in their writ For this social deception Sexist writing he had to abort, ing-and their thinking. We chose as an Is the only exception Advised his support staff, example a ditty penned by Robert It's time women truly came first! "If your men make that gaffe, Calderisi, Principal Adviser to the Vice You girls shouldn't type their report. " President, Personnel and Administra lENIN's William Steel offered: tion, that ran: He added, "Let's manfully seek My boss' technique is terrific, Not to offend the sex that is weak, There was a young woman who'd Job descriptions are quite scientific. Where now 'him' does occur, glower To keep things fair Let's change it to 'him/her' At the notion ofbeing "manpower" She says, "he/she" or "their" Though, honey, that may take a man She said to her boss And avoids language gender-specific. week." "I'm quite at a loss How can I change sex in an hourI" Jim Feather, Director of the Publica- Bank spouse (no,"spouse" is not a sexist tions Department, sent this via All-in-l: word) Jennifer Rutherford sent us this: This prompted Steve Ettinger of Sexist language you tell us is rife; CODOP to respond: It causes us trouble and strife. There once was a terrible person! Her manager he did reply, But on page twenty-three You never before met a worse 'un! 'Td thought you a regular guy, Of Bank's World you will see Who snuck in at night, But your feminist views A ref'rence to "IMF wife." Caused a heck ofa fright By pronouns all 'round a'reversin'. Do my manhood abuse, Better seek a new job, cutie pie!" Well, you may not think it is so bad But I was just shocked at the cad! .()~ ., M~, tJ.Mll ""~ Fancy putting in "he" Where it could've been "she," Sure alack and alas 'twas a lad! 1r ~ ~~~ \t.QM~ -~ ~ ~~~-~~ ~!.AII~ Editorially piqued (and in spite of the (\ __ '" Alexandra Jones of PHRHN sent in fact that she would be an ineligible con- testant), Bank's World Associate Editor Jill Roessner shot back: ~~ 5~ ,~ _ /L flJL,. her entry and took us to task for not Saying "wife" is sexist you claim. quoting women in the story on sexist lan Mr. Feather, really, for shame! guage that accompanied the contest an Since I know she's the distaff, nouncement. She also, rightly, pointed There were far more entries than we I said so, that's the gist of have the space to print. Media and Com out that we used the term "men and My defence. I'm quite free ofblame. munications staff worked long and hard women" twice as often as "women and men." We stand corrected. Herewith, her into the night and voted by secret ballots The last word, to date, remains Mr. to determine the winner of the prize: contribution: Feather's, who responded with: lunch for two-on us-in the D Dining If you do not think sexism thrives "By their spouse you shall know Room. The first ballot ended in a tie. The In the language ofour daily lives, them, " said she. second ballot, cast by three women and Ponder "brother and sister, " "I'm content to be Wife, IFC. two men, chose Steve Ettinger. Congrat "Men and women ':. "Mister Woman's sole definition's ulations, and give us a call on Ext. 74686 And Missus" and "husbands and Her husband's position." to tell us when you want to eat your wives." Come offit, Jill, Fiddle-de-dee. prize. II 6 THE BANK'S WORLD / FEBRUARY 1990 Meeting Highlights Contractors' Concerns Taking Care of Business by Ernesto Henriod tional work made by unforeseen site con struction industry, partly to help our bor W hen Frans de Vilder, President of the Confederation of International Contractors' Association (CICA), re ditions or through an oversight of the project designer, when an inexperienced rowers avoid such costly situations in the future. The event was initiated by the sponded to Moeen Qureshi's remarks project administrator issues contradic Procurement Policy and Coordination upon opening the two-day meetings be tory or potentially damaging orders, or, Unit (CODPR) of the Central Operations tween representatives of CICA member even worse, when a designer attempts to Department, following a series of consul associations and Bank staff, he said, "I conceal his errors by blaming the con tations with international contractors' am glad to be given the opportunity to tractor. associations and a similar meeting held come and present the case of the contrac in 1988 with the European International Legitimate gripe Contractors' group. The encounters are tors in this, the Holy of Holies ... " No, he wasn't awed by the stately The contractors, it seems, have a legiti slated to be held annually in late fall. wood-paneled walls and the huge horse mate gripe. Lack of communications with (For those interested, an informal note shoe table of the old IMF boardroom in them, or poor un- with details of the E building. Contractors are used to derstanding or the November dis such surroundings, and, in fact, often management of cussions is avail build them. contracts can in- able from deed be costly. CODPR.) And, no, the thought of all that money stashed away in the Bank's vaults did Take, for ex 'It is the Construction ample, the case is a necessary not cross his mind. Mr. de Vilder was fully aware that we don't deal in ready of an education construction link in the pro cash. project in a Mid dle Eastern industry that cess of develop ing infrastruc His subtle implication, discussed country. Con translates the ture. As Mr. frankly and openly November 9 and 10, struction of 14 Qureshi put it, it was this: contractors see the Bank as an schools came to dreams of is the construc institution out of their reach, not easily approached and insensitive to their trials a standstill. Con tractors aban statesmen and tion industry that translates the and tribulations. Contractors seldom have the opportunity to talk openly with doned the site visionaries to dreams of states because the bor men and visionar Bank staff, let alone management. Super rower had stead realities by ies to realities by vision missions usually overlook them and their problems, as Bank staff confer fastly refused to building highways, building high provide escala ways, ports, with the borrowers and their consul tion clauses to ports, dams, water dams, water sup tants, getting their side of each story but adjust prices for ply systems, and often neglecting to look into some of the inflation. Or the supply systems, so on. real causes of delays, cost overruns and other implementation problems. time a contrac and so on.' tor was denied a protected rate of -Qureshi Listen Bureaucratic procedures exchange for the We should ac Difficulties arise, for instance, when a foreign currency cord contractors site is not handed over to the contractor needed to per- the benefit of our because of expropriation delays or, more form his con- attention and lis frequently, when bureaucratic proce tract. ten to what they dures to make land available have not The contract price steadily eroded have to say for, at times, they can help been completed on time, when contrac with the fast depreciating local currency, from the initial stages of a project's de tors are paid late-often eight to 10 and the contractor stopped work. velopment. Thus, the meetings' agenda months late, when a borrower cannot The recent meetings were held to im included discussion of initiatives such as find extra funding to cover the addi prove communications with the con- BOT (Build-Operate-and-Transfer) for THE BANK'S WORLD / FEBRUARY 1990 7 which an entrepreneur-often a civil contractor-finds the financing and de signs and builds the facility. The contrac or then operates the facility for a num Finding a Place ber of years, holding the equity, repaying debts and obtaining profits, after which ownership is transferred to the host Called Home country. Another possibility is Turnkey by Alan Drattell Contracts, where the contractor does the design (directly or through a consul tant), and builds and delivers a finished L ocation. Location. Location. Those "three" requirements are cen tral to buying a house or condominium tion Counseling Centers-in Tyson's Corner, Virginia; Bethesda, Maryland; and Baltimore (near Baltimore-Washing product conforming to agreed upon per or renting a house or apartment. And for ton International Airport), Maryland. formance specifications: a bridge of a Bank families, there are other require Another factor is that the L&F team given size and capacity, or a factory capa ments as well-ranging from dealing includes agents who can converse in 47 ble of producing so many tons per with a real estate agent who can speak languages and dialects, "so when we annum. These approaches differ from your native language to leaping the hur have a client who cannot speak English, Management Contracts, in which the dles of cultural shock for those who we are able to link that person with an contractor takes responsibility in the de move to the Washington area from an agent who can speak the relevant lan sign stage, participates in the definition other country. guage," adds Mrs. Smith. of least-cost solutions, manages the pro For a number of years the Bank has Mrs. Smith supervises the activities of curement and supervises construction of had a Housing Office to help current two full-time housing advisers at the the works (not unlike the system staff and those just joining the institu Bank-Deborah P. Ferris and Anne adopted by the Bank for constructing its tion in -finding suitable housing-and Dickerson, who is a Bank spouse and for new buildings). Other initiatives employ others in selling their present abodes. In mer WBVS Chairperson. They are based ing the entrepreneurial, engineering and February 1989, after a long, competitive down-to-earth practical knowledge and process, Long and Foster won a renewed experience of contractors were also ad housing services contract. dressed. "One of our big selling points,"says Participants in the November meet Teggie Smith, who is in charge of special ings included contractors from both de projects for L&F's Relocation Counsel veloped and developing countries. ing Center, "is that we do corporate relo Made their case cations for 200 other companies, so we're experienced and well-qualified to The latter made their case: difficult assist Bank staff." L&F has three Reloca working conditions, uncertain markets in which to develop, lack of investment and working capital, shortage of manage "This is where my wife and I would like to buy a ment skills. Yet, the developing contrac home," says Frank Bellinetti, PEREB, pointing tors must absorb an important share of to a community on an area map in the Bank's the load-they are called upon to per Housing Office. Left to right: Deborah P. Ferris, Teggie Smith, Frank Bellinetti and Anne Dicker- form tasks that don't attract interna son. tional competition. They want to be part Photo by Alan Drattell of the construction of large and complex projects in their own countries, be it as associates or subcontractors of the larger firms. For this to be possible, though, they need training in manage ment and engineering, and the capital and physical means to make substantial contributions to the construction efforts. In concluding his opening remarks, Mr. Qureshi recalled the time he was building his own home and asked the ar chitect, "Tell me, is there anything worse than dealing with a contractor?" The architect shrugged and replied, "Yes, not having one to deal with." Editor's note: Emesto Henriod is Pro curement Adviser in the Procurement Policy and Coordination Unit. 8 THE BANK'S WORLD I FEBRUARY 1990 on the fourth floor of the 0 building, Another important aspect of relocat Says Vipul Tandon, PBDFR, "I want ev and it is their job to introduce Bank staff ing is specific needs, such as a particular eryone to feel confident about calling seeking L&F services to what is available school for the children; L&F can help the Housing Office. I received excellent in the area and to link staff with the ap the staff member and family decide on assistance. It was particularly useful to propriate agent in the field. the most logical site. "We do a needs me because I was a first-time home One of the advantages to having this analysis for every family," says Mrs. buyer, and the agent who was assigned advisory service, according to Mrs. Smith. "Some people, for various rea to me was extremely patient and very Smith, is as an aid to Bank recruiting. sons, may want to be close to a Metro sta professional." "We have made presentations to all the tion. Or, if someone does not drive, walk Here is how the Housing Office will Personnel teams to let them know how ing distance to shopping may be a help staff seeking assistance: the Housing Office can assist them in re priority." · Provide a financial comparison of locating new hires to the D.C. area. The renting versus purchasing. Multiple listing network earlier someone seeks our assistance the · Maintain a current file of rental better, for that gives them and us that L&F is tied into the multiple listing properties, and if staff choose to rent, much more time to match them with network of area Boards of Realtors, so counsel them on the cost of rent in rela the type of property best suited to their that if L&F does not have a primary list tion to their salaries, the cost of utilities needs." ing of a house in an area a staff member if extra, and leasing procedures in the wants, scanning of the computerized Washington area. If requested, L&F will Good investment multiple listing most often will locate also review the lease for any restrictions, Internationally, Mrs. Smith notes, the the desired type of dwelling. such as sub-leasing and keeping pets. Washington area is known as a good in Ali Tricha, EDS06, says, "The Housing · Advise purchasers on property val vestment "and Bank staff generally are Office gave me excellent ideas about ues and trends; property taxes; availabil investment wise," so some people who where to rent a home that would please ity of mortgage financing options and may be coming here on a fixed-term as my family. I did not know where to the cost of monthly payments in relation signment might still prefer buying begin, but Ms. Ferris gave me a lot of to their salaries; general advice on the rather than renting. 'We even help sum time. The agent who was recommended usual purchase clauses (e.g., inspections mer temporaries who need rentals while to me found me a good house at a good of homes) in purchase contracts; referral they are here," Mrs. Smith adds. price to rent for one year." of purchasers to sales agents who have There are many quirks in local laws been specifically selected and trained to and customs that people coming from work with Bank staff. other areas may be unfamiliar with, al)d · Advise staff going on field assign the housing counselors can help, ac ments regarding sale versus rental of cording to Mrs. Smith. their current Washington area property; arrange for an agent to provide a market analysis of property to sell; and provide property management information. Alert the Housing Office "New staff or staff who are currently overseas on assignment who will be re turning to the area soon should alert the Housing Office of when they will arrive in Washington and their specific hous ing needs. They can call the Housing Of fice (202-473-0617) or by fax (202-477 6391)," says Mrs. Smith. "This advance notice will enable a housing specialist to make the necessary arrangements so the relocation will proceed smoothly. "One other thing I'd like to clarify: Use of the Housing Office is for all cur rent and future staff who need assistance in purchasing or leasing a place to live, as well as those seeking to sell or rent their current house or apartment." Periodically, the Housing Office con ducts seminars for staff. But assistance is available on a scheduled basis Tuesdays through Fridays from 10 a.m. to 4 p.m. in Room 0-4044. Call Ext. 30617 or 30636 for an appointment. II THE BANK'S WORLD I FEBRUARY 1990 9 World Bank Operations in Eastern Europe Parvez Hasan Parvez Hasan, Chief Economist, EMENA region, addressed the adopt programs to restore macroeconomic equilibrium and "Hungary in the Nineties" symposium held last November in growth. The Bank's adjustment lending operations, which sup Budapest and sponsored by the Global Action Institute and Na port these programs, are usually associated with financial assis tional Bank ofHungary. Here are excerpts from his remarks: tance from the IMF aimed at stabilizing the economy. The second, and related, condition is that borrowers must demonstrate they are, or are going to become, fully creditwor T he World Bank is not a newcomer to the region. Poland, Czechoslovakia and yugoslavia were founding members, though Poland and Czechoslovakia ceased to be members thy. For a country already heavily indebted, this implies that the program of economic stabilization and adjustment must be suf within a few years. (Czechoslovakia has just applied for member ficiently rigorous to permit the country to service its debt, ship.) Romania joined in 1972, Hungary in 1982. Poland re achieve a reduction in the shares of national income and export joined in 1986. Our lending to Poland is yet to begin but to earnings devoted to debt service over a foreseeable period, and other East and Central European countries (including Yugosla therefore resume growth. The assessment of creditworthiness, via), our gross commitments over the years have been close to of course, requires many sensitive judgments about future eco $10 billion. Hungary has so far borrowed $2 billion for 20 opera nomic developments and about the willingness of other credi tions, and several loans for Poland are in various stages of prepa tors to contribute to fi nancially supporting the program-ei ration. ther with new funds or by easing the debt, or, in the case of the The Bank lending to member countries of East and Central most severely indebted countries, by forgivi ng debt or reducing Europe is based on the same economic criteria as that applied interest payment obligations. For such countries, devising a pro to other members. As the Bank has come to better understand gram of economic recovery to restore creditworthiness requires the particular economic system of its socialist members and as agreement between the country itself and its maj or creditors on these countries themselves have become more committed to a debt workout program. fundamental economic reform, the Bank's lending has been and will be more closely linked to changes in policy and institu tional framework of each sector and of the economy as a whole. For instance, in Hungary, the Bank started with relatively tradi C learly, the experience of Hungary, Poland and Yugoslavia in the early 1980s has shown that to restore sustainable eco nomic equilibrium and growth requires more than the tradi tionallending to industry, agriculture, infrastructure and en ergy, but has progressively extended its advice and financial as tional package of polley measures like cutting imports, reduc sistance to overall programs of economic reform, especially ing budget deficits and modifying individual policy variables through loans for industrial restructuring. The Bank is pres such as interest rates and exchange rates. Addressing the funda ently engaged with the Hungarian authorities in preparing a mental sources of structural imbalance in their economies-in possible first structural adjustment loan. particular, the enterprise sector's traditionally unrestrained ac Any lending by the World Bank-and especially adjustment cess to resources from the state budget and the banking system lending-must meet certain prerequisites. Let me mention two to finance its activities and any resulting losses-is essential. As important ones. long as this feature (the so-called soft budget constraint) pre First, the country must have reasonable prospects of main vails, enterprises are not sufficiently motivated to increase their taining, or attaining, macroeconomic stability in order to pro profitability, and so resources continue to be used inefficiently. vide a suitable climate for economic growth. Countries in the At the same time, increases in wages outstrip increases in pro throes of serious imbalances, particularly as evidenced by large ductivity, and so imbalances in domestic supply and demand or growing current account, fiscal deficits and inflation, need to persist as well. 10 THE BANK'S WORLD I FEBRUARY 1990 An effective adjustment program for the countries of East In Hungary, our lending has risen to $330 million per annum and Central Europe would include the elements of systemic re during the last three years. It is one of the highest levels per ca form that, to varying degrees and with different emphases, pita in the Bank, and net flows from the Bank have accounted Hungary, Poland and Yugoslavia have each begun to adopt. for 15 to 20 percent of net flows to Hungary. In addition, the These elements, which in combination are essential to the work Bank has played a significant role as a catalyst in cofinancing. ing of a market economy, involve a fundamental re-ordering of As I said earlier, we have broadened the agenda of policy and the enterprise sector through limiting its traditional access to institutional reform in Hungary through successive operations resources from the budget and the banking system while simul and, hopefully, through a structural adjustment loan in the taneously increasing enterprises' autonomy and financial ac near future, we can deepen our involvement with the entire eco countability. But a fundamental change in enterprise behavior nomic reform program. Provided the Bank and the government also requires: first, mobility of factors and production-both can reach agreement on such a program, we should expect to capital and labor; second, effective competition through free maintain overall Bank lending to Hungary at a high level and dom of entry and exit; third, removal of administrative interven would hope to increase the share of adjustment lending in the tions in price setting; and fourth, a clear and explicit representa total. We are also planning involvement in longer term areas of tion of ownership interest and diversification of actual human resource development and environmental improvement. ownership. I would like to add, however, that while external assistance is im We have also learned that the desired changes in enterprise portant, much larger flows of foreign capital are not the answer behavior are a greater challenge than they may have first ap to Hungary's problems. peared to be. For example, it is not sufficient to merely declare enterprises financially responsible for their actions; nor is it enough to legislate change in the regulatory framework, such as by introducing a bankruptcy law; nor is it adequate to realign T he Bank will soon begin lending to Poland. Two develop ment projects in industry and agro-industry have been ap praised and projects for energy resource development and con prices administratively. Incentives must be transformed thor servation, transportation, and telecommunications are also oughly for all actors throughout the economy-in other words, under preparation. remove the stake that enterprises and households have in the ex We also stand ready to start working on supporting the re isting system. forms through an adjustment operation, provided the prerequi The historic efforts now under way in Hungary and Poland to sites are met. This will not be an easy task, but, if all goes well, transform the system testify to the limitations of past attempts. the Bank can be in a position to support Poland with substantial financial assistance as we have been doing in Hungary. We L ooking to the future, I will single out two conditions for re form to succeed. One, there is need to establish true financial discipline. This would naturally work closely with the IMF and the European Community and other major donors. implies the state would refrain from subsidizing loss-making Our intellectual work-economic and sector studies-pro firms. The state would give up its major role in financial inter vides the underpinning of our lending work and our dialogue mediation to permit the development of a modern financial sys with governments. We spend about 20 staff-years annually on tem, in which banks would be autonomous and apply strict stan this work in Eastern Europe. In Hungary, we are fortunate to dards of creditworthiness in lending to enterprises. have been able to work closely with local experts and institu Two, there is need to take adequate measures to mitigate the tions. expected social costs of reform and adjustment on the most af Our sister organization, the IFC, is already active in creating fected population groups-for instance, those who lose their joint ventures in member countries of Eastern Europe and in as jobs and those pensioners whose real incomes are sharply sisting governments in improving their policy framework for di eroded as consumer subsidies are reduced. rect foreign investment. There has been little talk during this seminar of the social In conclusion, we in the World Bank fully realize the histori costs of adjustment. Unbridled capitalism can invite serious po cal importance of economic and policy changes in Eastern and litical backlash. Having said this, I must say that reform will Central Europe. Our involvement in the area is already substan mean gainers and losers, and I am not suggesting to cushion tial. With the expected inclusion of Poland as a borrower in the the effect on all losers. near future, we would anticipate at least doubling our lending The World Bank is strongly committed to assisting the mem to this region over the next three years. We hope to remain very ber countries of East and Central Europe, provided commit active in assisting the countries with the formulation of their ment to systemic change is maintained, effective implementa programs for reform and adjustment, and we stand ready to pro tion of reform can be ensured, and for heavily indebted vide further support through adjustment lending. The chal countries, such as Poland, debt workout plans supported by co lenge and the difficulties facing the reformers are considerable, ordinated action among principal donors are agreed upon. but the potential benefits far outweigh the costs and risks. II THE BANK'S WORLD I FEBRUARY 1990 11 Children Illustrate Their Countrys Problems Special Greetings from Senegal by Linda Patorni 11 That started off as a simple idea has \'\' turned into an exciting and suc cessfullittle project by the students of the Marne Thierno Birahime M'Backe school in Dakar, Senegal. The result: some 400 beautiful and imaginative greeting cards which the Senegal Resi dent Mission staff have sent as their offi cial New Year's cards, each an original watercolor, depicting the theme of pro tecting nature. Ayear ago, I had seen an outstanding ex hibition of children's art in Dakar and was impressed by the perceptiveness of the paintings, each one illustrating some of the very real problems facing their coun try-whether it concerned family or edu cation, or broader environmental issues such as drought or deforestation. The children's uninhibited use of color was impressive as was their sense of perspec tive and their attention to detail. The ex hibition was organized and coordinated by Ousmane Fall, a young man who heads the art education division in the Ministry of Education and who himself Respectons la nature is an artist. He works with the schools, helping to design their art curricula, and has coordinated a number of similar ex hibitions throughout the country. Working with children Aquarelle origina/e I approached him with the idea of working with children to produce paint ings that would not just be exhibited, but would become individually created and signed greeting cards to be sent to a their lessons between the school and to 15 years, and they discussed the wide audience, including all of the high other nearby buildings. The facilities are theme during several classes, making est government officials in Senegal. Both poor, the classrooms small and dark, usu pencil sketches of their ideas. Despite he and Ibrahima Niang, the Minister of ally with more than '60 students per their urban upbringing, it was obvious Education, were excited by the idea and class. Resources for the art classes con from their initial sketches that they are by the theme of protecting nature. sist of pencils and lined exercise books. well aware of the magnitude of the prob We selected the Marne Thierno The school, however, has a dynamic art lems affecting both rural and urban Birahime M'Backe school, which is lo teacher, Anta Germaine Gaye, a well areas and the impact on their future. cated in a densely populated area of known artist who has exhibited her work While there is now much more active na Dakar, and which, like many schools in in Senegal and abroad, and whose enthu tional support for reforestation and pro Senegal, is very poorly equipped. The siasm captivates her students. tection of parkland in Senegal, the trap school has a total of eight classrooms for Madame Gaye explained the project to ping and exporting of wild birds is still, 11 classes, forcing the children to juggle her students, who ranged in age from 10 unfortunately, a thriving business. And, 12 THE BANK'S WORLD I FEBRUARY 1990 Ibrahima Niang, the Minister of Education of Senegal, and Linda Patomi thanking the school. Far right. Anta Germaine Gaye, art teacher, and Francois-Marie Patomi, Resident Representative for Senegal. Photo by Claude d'Almeida Wildlife is illustrated in a number of in Dakar is considering doing a similar ways: the wrongful slaughter of project and the World Conservation Senegal's few remaining elephants, or Union is planning a small article with il more pastoral lakeside or bird scenes lustrations in its next Africa bulletin. Ed from Sine Saloum or the Parc de Djoudj, ucation Minister Niang was particularly the third most important refuge in the taken by the results and, in thanking the world for migratory birds. Some of the school, proposed a much larger scale paintings are artistically outstanding, project for next year, involving several while others are so imaginative that one schools and possibly raising some funds. can forgive the odd fingerprint, smudge or paint spill. Each is original and comes My own reaction-after gluing all 400 with a preprinted message which, trans paintings to the printed cards-is that lated, reads: "This original watercolor small is beautiful. Nonetheless, there is was painted by a schoolchild from Dakar, no doubt about the potential of such a to promote the awareness of youth to project, should the children of Senegal ward nature. The choice of illustration want to take it on. II!I as in many African countries, the ele has been left to the imagination of the phant population and that of other large young artist." Each card contains a small Editor's note: Linda Patomi was an Ad game has been decimated. insert thanking the school and the indi ministrative Officer in Country Depart viduals concerned. ment II, Asia, before taking a leave ofab First experience with paint As of this writing, we are in the pro sence to accompany her husband to The first painted designs were out cess of sending the cards. The reaction Senegal where he is the Bank's Resident standing, particularly as it was the has already been phenomenal. UNICEF Representative. children's first experience with any A third-year student working on a forest scene. Photo by Ousmane M'Baye form of paint. In fact, I hadn't antici pated their excitement when we pro duced the paints, brushes and cards. The paintings were done on 3-inch square cards, which were to be mounted on preprinted greeting cards. There was a slight delay once the paint ings were finished because I hadn't re alized they would have no pens with which to sign their names. I hastily brought a few felt-tips for that final touch. The 400 cards are superb. The con cern for deforestation is eloquently por trayed by dramatically encroaching sand dunes, vividly colored bush fires, bull dozing or chopping of trees, side by side with more hopeful pictures of farmers cultivating wetlands, and planting or wa tering seedlings. Country Funds for the Developing World by Asimina Caminis C ountry funds have a long history. The first funds, which were set up in the early 1800s, invested in the newly in 1962 have reaped a phenomenal return of over 3,000 percent. Several Brazil funds were successfully launched in the 30 were launched from 1986 to 1988, and at least 20 were launched during 1989. dustrialized countries of the era mid-1970s. It was in 1981 that IFC first In addition to playing a major role in primarily Canada and the United States. became directly involved in country setting up several new-money funds that Today most country funds invest in the funds, as adviser to the Mexican govern invest in individual countries, IFC has stock markets of developing countries ment in connection with the Mexico launched two funds that invest in stock the so-called emerging markets. These Fund. Although the Fund suffered ini markets worldwide as well as two re markets, most of which were considered tially because of the debt crisis, it has gional funds. These are closed-end off-limits by foreign investors a decade performed well during the past few years. funds-investors can withdraw only if ago, are now viewed as the new frontier they sell their holdings to other foreign The Korea Fund investors or if the fund is wound up-to by many in the investment world. There are two basic types of country "Things really got started for IFC in reduce buying and selling pressures that funds: new-money funds and debt-equity 1984, with the Korea Fund," Mr. Graffam could lead to volatility of share prices. conversion funds. New-money funds declares. IFC was the fund's key sponsor The debt-equity conversion funds devel raise money from investors to buy shares and one of the co-lead managers. "At the oped by IFC typically target specific in companies in a single country or a time, there was a great deal of skepti kinds of companies-for example, state group of countries. Many are listed on cism. Korea was considered a heavily in owned companies undergoing privatiza the major stock exchanges and some are debted country experiencing political tion, private companies, or joint ven publicly traded. Debt-equity funds, con turmoil." Spectacularly successful, the tures--Y ~ 1:0 Mt('l'HINCO ~ ? o o o () () THE BANK'S WORLD / FEBRUARY 1990 19 Around the Bank continued Sheram, "Although these kits are de · discuss what GNP per capita cannot signed especially for secondary schools tell you about a country. or above, they can also be used for lower The comprehensive Teaching Guide Measures of Progress ... and middle-schools with some teacher contains a glossary, a full range of work ... is the title of a series of poster kits de adaptation." sheets, data table, and a test. signed to promote understanding of the Other kits available 'i n the series exam More than 5,000 poster kits have been process of economic and social develop ine life expectancy at birth and popula sold to date, largely in the United States, ment-especially of low- and middle-in tion growth. These are available from Canada and the United Kingdom. Addi come countries. The poster reproduced the Bookstore at 50 percent discount to tional poster kits are planned for the fu here presents statistics on gross national staff. And a catalog listing the different ture. product (GNP) per capita for 120 coun development education materials pub Feedback from teachers using the tries with populations of more than 1 lished by the Bank is also available. poster kits has been excellent. One social million. With this particular kit, students learn studies supervisor in New York wrote, "I Each poster kit contains a 24-in. by to: express my admiration for World Bank 36-in. color poster map of the world, six · read and interpret data about GNP educational materials. They are effective color photographs with texts, and a per capita on maps, graphs, and charts because they require students to gather teaching guide designed for use in sec · explain the relationship between data from different sources, make infer ondary schools. The kits are prepared by GNP per capita and population growth ences from their observations, and syn Katherine A. She ram, who runs the De rate thesize a lot of information. These skills velopment Education Program in the · explain some of the factors that can are invaluable. II Publications Department. Says Ms. help increase GNP per capita · GNP PER CAPI ~ Gross mtional product (GNP) per capita is the dollar value of a country'S final output of goods and scxvkes in a year. divided by its population, It reflects the value of a country's economic activity and the im:ome of its people. GNP per Capita ~ ~~.~~)~~~((m.(Jtlit?~ If~:.;IG~.;.:::Z1WI {;~.~;d~~.~!~~'me <'oulltriCs Higl~'incon~~ C~i.f ntric5 J6,;)(;'(;Jr.dmo:., c:::J DilUt not ;)v(tn«(hl~ '·' . , ' , ,:'t'(,( :,~~~ ", ~~~ ""'. ", " ," '"tnbution fUf kJrd-w coonUiOl, · '" / I: I r !tK-~t!' l""'" j !C . ~~'iO"'~:I;1Mcs ·:„~t): ,k !I~.~ d l«tlIS'(·~ x:d l'J&lCN ' , , r~ ~ ;;,1~' ~ "f''Ao :.'t'".t"I:': ~!'{vdc:p:nz. .:;:>c n' :t'fk!< ~.I; < :.:.JA ft"".~· n: ). ;;.;\..·,. t<" fn,,-C;~<: . · ""~k- 1~ "'nll' ....."t:'I ···. <"ft' ,C'.';'lllj~4t ~ 1\.1 - n1ltc.ill n;' ''t-~<.tJJt ... CCx:~ ~/ \:-IA : ll:' , ......o("' ·· ~~·..t ~ :)00 ...._,.... :; ;.;; !':t{~~ 11:.(,ml": l<'"m . a III ~'~g:-$;'. k':Y;<.'>'a. tht : ~ ;[J rc:",,::1 NI:': ""''''''tytr.'(' :1:~:(>$: m(':IP .~! ,; r~"'f;. ln(';crtl~A $ .. ,,: ~ "1f .............. _4 ;,;:{,w:r..:1t CNr ~l " :-af') ;·k,;lkcd in t..~th jl!'.:-a:;..'-i ,·t :-: ~ftmM'(":WJ ,~ tt.oI: " O;::"lll!~r.":t ~ " ttli J~rc.~· II,('( : Il>· lr>o.t'tVl' .:cr:.l : .,.:::I!:f'!I: 'fiwrh:"l:l .1~X'!':#"'~ ;>:'··· 20 THE BANK'S WORLD / FEBRUARY 1990 Save Your Grocery Store United Way Update Receipts $70,000 worth them to get a free com United Way volunteers and coordinators puter for a registered school. have been particularly busy this year. "This area is the most expensive in the Kenlee Ray, who chairs this year's cam nation for groceries," Mr. Grassley points paign, reports that special events have out. "In most areas, if a food store nets 1 greatly helped raise campaign contribu percent of its total sales, that's regarded tions. Among them: as a good profit margin. In the D.C. area, · Randi Selehdar and volunteers in they get 3 percent. It's time the grocery lEN raised $523 with a departmental raf stores gave something back to the com fle and a chili luncheon; munity." · Lucie Tran of CODMO and her col The two supermarkets have launched leagues held a bake sale that netted $101; the program in cooperation with Apple · The ITF benefit, "Hang Loose in Ha computers. Lots of families are saving waii" garnered $342; the receipts for their own children's · AF5's walk-a-thon and weight-a schools, but people who do not have thon were expected to raise about $1,300; schoolchildren, or whose children's · Roger Silk and volunteers in the In schools are not participating, can help vestment Department hosted a coffee You have a terrible craving for a candy some inner-city youngsters. The Commu during which Amy Ginzburg from the bar. You run into your local Giant Food nity Relations Office has identified sev Coalition for the Homeless spoke. This or Safeway store and indulge yourself eral schools in low-income areas which led some staff, who otherwise might not with 45 cents' worth of sugar, cashews need help in collecting enough receipts have donated, to contribute to the cam and calories. You can turn that moment to take advantage of the offer. paign. of weakness into something worthwhile. Mr. Grassley says he's been receiving An International Munch, during Save the cash reg~ster receipt (blue from about five or six envelopes of receipts which the World Bank Jazz Ensemble Giant, and orange or white from Safe each day, not as many as he would have gave its first concert, also raised way}-and send it to Lee Grass~ey in hoped for. Perhaps some of us have enor funds. II Room 0-4131, or Yosef Hadar in E-8031. mous envelopes stuck on the fridge with Of course, we'd also like you to save your a magnet, and they are positively bulg receipts for larger amounts, but even the ing with receipts. Better send them in 45-cent ones add up, and it takes the program ends March 31. III The Last Word by Frank Vogi There is the temptation to dive into the of our time: the hundreds of millions of T his is my final column for The Bank's World, so permit me to write about politics. Not the sordid office poli grand unfolding business of East Euro pean development at the exclusion of all people in the developing world who live in the most frightful and wretched of tics, or the behind-the-scenes deals that else, or to become a still more narrow conditions. may have driven key decisions down the specialist on debt, or focus exclusively The aid debate dare not forget the years here. No, permit me to leap beyond on aspects of the global warming issue. poor. the walls of the Bank and talk about the But such temptations, so great these There were times in the 1980s when it politics of aid. days for politicians, must be avoided. looked like this was happening, and it The 1990s need to see the rebuilding The political debate over foreign aid could well happen in the 1990s. As the last of the aid constituencies across the land in many capitals of developed nations in decade unfolded, so the doctrinal enthusi scape of the developed world. All of us creasingly seems to be in danger of over asm with private sector solutions spread can playa part in this vital mission. looking the true development challenge like some new Paris fashion across the par- THE BANK'S WORLD I FEBRUARY 1990 21 liaments of the West, and foreign aid in couragement from its figures showing language about hunger. I tried a couple creasingly was seen by politicians as that total annual official development as of times, but the timing was somehow al being a dirty word equal to give-away sistance is about $51 billion now-a tiny ways wrong. But the aid community and welfare. Non-governmental organiza sum compared to the need, and com needs new inspiration, and I believe the tions in the aid arena all too often found pared to what consumers in developed Bank can provide it. themselves doing damage limitation nations spend on the frivolous luxuries The Bank should not directly intervene rather than building new constituencies. of life. Why, you just have to finance a in the political debates of its member coun And sometimes the Bank seemed so couple of RJR Nabisco-type Wall Street tries. But it can provide the arguments and close to the establishment that even it takeovers and you have the equivalent of the language that help local aid supporters was suspected by NCOs of having lost its all foreign aid going to all developing na to build their cases, strengthen the issue of heart and become as anti-aid as the tions for a full year. aid to its rightful priority place on the cabi toughest of its governmen net tables of Western leaders. tal shareholders. We can demonstrate that we Today the aid constitu have learned much in recent ency in one developed coun years about what works and try after another seems weak what does not work in devel and timid compared to the opment. We can show that 1950s and 1960s. Yet a re The World Bank there is hope for the people of vival of the strong constitu · · the Third World in the 21st ency is essential if the most IS moving century. basic problems of global pov We can demonstrate it. The erty are to be attacked. ahead today with the World Bank is moving ahead When humanitarian aid gets equated with hand largest a"ay of today with the largest array of development programs ever outs, as it did so widely in the early 1980s in particu development programs sponsored by a single agency in all of history. In that multitude lar, then the advocates of aid turn from the humani ever sponsored of programs are examples of how electricity is changing life tarian arguments to seem by a single agency for the better in a distant rural ingly more pragmatic ap village, how clean water has fi proaches. They argue with in all ofhistory. nally come to a remote town, governments about their how education is changing the Third World strategic inter prospects for millions of people ests and highlight the com in a score of nations. mercial benefits to be se The Bank can pluck dozens cured by development of bright humanitarian exam assistance. Even the crucial ples from its work. It can issue of environment in de It is the humanitarian story that has show how individual pro veloping countries gets turned into a grams are tied to meaningful policy universal appeal and it must be told with narrow self-interest matter, where, to se changes that offer better prospects than more emotion than we have seen in re cure support in a Western capital, it is ever for sustainable results. And in the cent years. The aid community has shriv suggested that funds must be made avail politics of aid in the 1990s, it will be pre able to prevent the sort of global warm eled and has become inward looking. It has not run out to find new members, to cisely such illustrations that will make ing that melts the snow in Swiss ski re the difference. They must make the dif sorts, wrecks the season in the South of capture the hearts of today's youth, to use language that rings true in the gut ference, because the numbers of abso France and robs the retirees in Maine of of any decent politician. Phrases like lute poor are growing and the pool of aid any good reason to flock to Florida in structural adjustment, entrepreneurial resources is declining in real terms. the winter. All such arguments may make sense incentives, food security and so forth The politics of aid are cruel to those and no doubt have their time and place. have come to dominate the debate. who have nothing, least of all the lever But to press them too hard overshadows These are meaningless phrases to the age to secure assistance. In the 1990s it the crucial human dimension of develop man in the street, the politician on the may become even crueler.. .let us hope ment. It is the plight of the masses of the back bench, the student in the college this desperate prospect does not develop developing countries that daily demands debating chamber. They are the useful and that, instead, we see a rekindling of us to give of our best at the World Bank. It words of technical dialogue, but no more the humanitarian flame that did so must be that same plight that goads the than that. much in earlier decades to enable all of politicians to vote solidly in favor of in We need to return to the old language us professionals in the aid community to creasing foreign aid. of poverty, but we need not return to the have a chance to try and do good. II As I pen these lines I look at the latest old arguments. One of my failures here report from the Development Assistance at the Bank was not getting a Bank Presi Editor's note: Frank Vogl is taking a Committee of the OECD and take no en dent to give a major speech in layman's leave ofabsenee. 22 THE BANK'S WORLD / FEBRUARY 1990 AnswerLine The purpose ofthis column is to answer were announced in the VIS, three out of tion Chiefs, Division Chiefs, etc., by questions ofbroad interest concerning four were filled by staff already on board. name. This information comes from the the World Bank Group ~ policies and pro This seems quite representative of experi IBM mainframe and is updated continu cedures. Please include your name and ence more generally. The Bank's hiring ally. Specialized lists are created upon re room number so we can send you the rate (i.e., filling vacancies from outside) quest of the client. These are updated by answer to your question, even if it is not appears generally to be about 7 to 8 per the Print Shop upon request of the cli cent, while its reassignment rate (filling ent. In cases where the client does not selected to appear in the magazine. Your vacancies or making swaps with staff make changes regularly, we request up confidentiality will be protected and from inside the Bank) has generalty been dates. your name will not be submitted to the 12 to 13 percent. Ian Hume, Director, List management is a time-consum manager from whom an answer is Personnel Policy Department ing job. Standardized lists save time and sought. An anonymous question can costs even if a percentage of staff receive only be answered ifit is ofsufficiently Question: In view of the Bank's com some documents in which they are not broad interest to be included in the mag mitment to projects with at least a neu interested. Specialized lists are kept to a azine. Send your questions to: Answer tral, if not positive, impact on the envi minimum and each list includes a num line, The Bank's World, Rm. £-8044. ronment, I am upset by the large ber of documents. Specialized lists for' * * * number of extraneous Bank publica only one specific document are discour Note: Questions about the rehabilitation tions my division receives and which are aged as they would increase list manage ofthe Main Complex should be sent to subsequently discarded. I am particu ment requirements. Answerline as well larly disturbed with the multitude of re In the case where you receive unla ports received from the Vice President beled reports from the Vice President * * * and Secretary's Office. I understand and Secretary's Documents Office, the so Question: Please provide information that the Bank has a paper recycling pro lution is simple. The Documents Office on what proportions of vacant regular gram, which is heartening. However, we sends each department the number of posts in the Bank have been filled from could and should go one step further to copies requested by the department di inside and outside the Bank respec eliminate this tragic waste and conserve rector. You should ask your director to tively, during, say, the last 12 months? our resources (by eliminating the cost decrease the number requested from It seems to me that our division chiefs, of printing, distribution and recycling) SEC. who do most of the recruitment in the to devote to our mission of develop In cases where distribution is based Bank, prefer to fill their vacancies from ment. A list of all reports (PCRs, on a standardized list, the solution outside the Bank, whether because the PPARs, PPR Case Studies, summaries would be for recipients to notify the grass is always greener elsewhere, or be of discussions of the Executive Direc Print Section Chief in writing to have cause they don't want to poach on the di tors and others) could be listed on elec their names removed from the distribu visions of their colleagues. If they go tronic mail. Interested individuals could tion list for documents no longer de through the VIS at all, it is just a cha then obtain their desired/required re sired. This cannot be done, however, for rade. If my observation is correct, won't ports. For those without electronic specialized lists unless you wish to be ex that bloat the staff numbers of the mail, the lists could be printed from the cluded from all the documents covered Bank? Certainly it makes it very difficult division chief and then circulated. This by a specific list. for us regular staff to achieve the Bank new procedure would not only be cost-ef As to the suggestion to order docu policy (still?) of "planned periodic reas ficient but morally sound. ments from a listing on All-in-1, this signment" every six or seven years. Answer: The Print Shop produces the would require delaying production or Answer: The obsetvation you make is number of copies of a document speci costly reprinting. The results would not not correct. During the period of July fied by the client and makes the distribu be economical and make work planning 1988 to June 1989, 710 positions were tion selected by the client from one of for printing and distribution as well as advertised through the VIS. Of the 545 115 standard or 20 specialized lists. Addi for storage difficult. Therefore, such an that were filled, 402 (74 percent) were tional unlabeled copies may be sent to option has been discouraged. John filled from within the Bank in contrast the client if so specified. In some cases Montefusco, Chief, Printing and Graph to 143 (26 percent) hired from outside. all copies are sent to the client. Standard ics, General Services Department In effect, of the positions filled, which lists are based on positions, e.g., all Sec THE BANK'S WORLD / FEBRUARY 1990 23 p Res- ectons la nature