58136 VOLUME 1t/.'IYlWfWIi,n Linking the Urban Third World with International Environmental Initiatives VOL 11/N02 In this Issue: FEBRUARY 1992 Grass Without oots? by Josef Leitmann Articles 2 Grass Without Roots? The "brown" hen international environ­ structure and services. This is particu­ environmental problems that affect mental and aid organizations larly true for vulnerable groups such as poor city dwellers. look at developing countries, impoverished women, children, and 5 AChange in Bank Culture. The Vice they usually do so through green­ the elderly. President, Personnel and tinted glasses. Typically their concern In 1991, the United Nations Develop­ Administration, discusses the changes ment Programme (UNDP) /World has been with the relationship between and initiatives announced in his recent Bank/UN Centre for Human Settle­ FYI. Third World development and global issues, such as depletion of the ozone ments (UNCHS) Urban Management 7 IBM Facility Center Marks Its First Decade. Technology at the Bank has layer or global warming, or has fo­ Program and a consortium of Canadian come a long way in the past 10 years. cused on the dynamics of rural ecosys­ groups undertook an effort to identify 13 AGreat Place to Work. A short story. tems. Thus the environmental agenda environmental agendas through public 16 Whence the Board? Some for developing countries, as defined by participation in four developing coun­ Comments. The former Nordic opinion-makers and aid agencies, has try cities and Toronto. The resulting Executive Director responds to a concentrated on the long-term sus­ Five Cities Project is described in the recent Staff Association article. tainability of natural resources. There box below. is, however, a crucial set of "brown" en­ These and other discussions must Departments vironmental problems that have an im­ lead to action if they are to have any ef­ mediate impact on a growing number fect. Three approaches have been tried 9 On the Record. Marcelo Selowsky on recently to raise the international pro­ of poor people living in the developing Latin America: Protecting Children's file of environmental priorities in cities. Nutrition During the Adjustment. world's cities. These include the day-to­ Rainer B. Steckhan on Fighting day problems of lack of safe water, sani­ tation and drainage; the occupation Bottom-up approach Poverty in Central America. 14 Staff Association. Back to Basics. and degradation of environmentally The first is to use a bottom-up ap­ 17 Around the Bank sensitive lands; inadequate solid and proach to influence the international en­ 18 Staff Changes hazardous waste management; and un~ vironmental agenda. A city or group of 20 AnswerLine controlled emissions from factories, ve­ cities takes the initiative in bringing to­ hicles and low-grade domestic fuels. gether municipal leaders, administra­ City officials often concentrate on com­ tors, representatives of community prehensive planning that has been top­ groups, media representatives, busi­ down and has excluded the environ­ ness people, academics, and aid agen­ mental concerns of citizens. This is cies to discuss metropolitan environ­ easy enough when there is a lack of or­ mental issues and priorities. Objectives ganized and effective environmental ac­ are to reach a consensus on the nature tivity, as in most cities of the develop­ of urban environmental problems, to ing world. Yet solving the brown outline guiding principles, and to rec­ urban-based environmental problems ommend an agenda for action. This cannot be achieved without building consensus, often presented in the form political constituencies that demand a of a statement or declaration, can then Cover: better quali ty of life. be used by conference sponsors and Detail from one of the Aboriginal other participants to strengthen the paintings that will be exhibited in the E Urban groups case for placing urban-based environ­ building gallery (12th floor) between mental concerns in other fora. An exam­ March 2 and April 10. To apply this political pressure, af­ ple of this approach occurred last year. fected urban groups must understand In August 1991, the City of Toronto the causes of their problems and learn organized a conference, "World Cities The Bank's World is published monthly in Washing­ ton, D.C., by the Information and Public Affairs Divi­ to vocalize their concerns. Typically, and their Environment," to provide"a sion of the World Bank for all employees and retirees there is little public awareness about forum for local governments to de­ of the World Bank Group, 1818 H St., N.W. , Room T-8049, Washington, D.C. 20433. the sources and effects of urban ecologi­ velop responses to critical urban envi­ Thierry Sagnier, Editor and Publisher cal decay, and target populations are ronmental problems," and to raise "the Jill Roessner, Associate Editor rarely involved in the planning and im­ Morallina Fanwar-George, Editorial Assistant international profile of urban environ­ plementing of environmental infra­ mental issues." The meeting was at­ veloping: an urban environmental ""TnhT""rI ;n "'''£00 studies, dem­ Katowice, Poland, lies in one of the most industrialized Inhabitants suffer from a concentration of the air, an astonishing tons of solid waste per day, overloaded wastewater treatment facilities, and of lead in the soil. Photo by Mary McNeil stitution sponsored tended officials and NGO repre­ sentatives from 135 cities 78 coun­ 42 less­ LJ ex- Environmental pf4[)te~ctlon The environmental OJ of between cities. LUU::'Ullduun and town pro- The International Council for Local This can be done either be­ Environmental Initia ti ves cess, described in the was an inte- tween an international of the conference. After the founded in is a more formal inter­ local or via the establishment rnl:>at-'I"'H',C and to the confer- of a formal intermediate national NGO established rn~nTll'I'"C and local coordinators m..-",rn.-.lo of the former national Union of Local the Environmental Pro­ wc:>.... u"" the results of the consul­ then issued a statement gramme and the Center for Innovative MEIP Its ,...h;",,,,l-; yy~~ that was to draft the declaration which was endorsed the of mtmll21pal concerns international institutions. Its au­ dience is the membership of IULA's 56 mobi­ national and international resources; and foster inter-mun and other forms of Its rec­ ommendations are focused on the 1992 UN Conference on Environ­ ment and also known as Ea~th Summit­ rnaal-1nn-· a common statement environment for r\rt=D,nt,~_ Earth su.................. 1-1 creation of an environm",..d.~ local initiatives t-h~'"",rrh an ag(~nCLa to follow up on o...;.l1rnt'Y'llt tions. Establish IJUUUI.U:::;:' gramme. and after the Earth dollars will be mobilized to THE BANK'S WORLD I FEBRUARY 3 address global environmental con­ cerns. Some of those funds should find their way to citizens in developing Five Cities and the Environment country cities who need to organize and educate themselves to solve locally­ To listen to people's concerns about enhancing public awareness about based environmental problems. One of the local environment, in 1991, the ecology and environmental health the key recommendations of the To­ UNDP/World BankiUNCHS Urban problems; restructuring industrial activ­ Management Program and a consor­ ity to reduce negative environmental ronto Declaration was "the creation tium of Canadian groups undertook an impacts; and improving public access through UNCED of an environmental effort to identify environmental agen­ to environmental information and fund to support local efforts for better das in Accra, Ghana; Jakarta, Indone­ decision-making. In Sao Paulo, the management of natural resources and sia; Katowice, Poland; Sao Paulo, Bra­ five subjects that topped the urban en­ for the development of sustainable zil; and Toronto, Canada. vironmental agenda were negative en­ communities, to be administered by vironmental impacts of housing pat­ representatives of local governments/ In each city, a three-step process was terns; inadequate land use and green used to develop an understanding of space policies; the links between natu­ authorities and non-governmental orga­ environmental priorities. An urban envi­ ral resources, public health and basic nizations." This proposal, tentatively ronmental questionnaire was used to labeled the Local Initiatives for the sanitation; energy-transportation­ generate information on important indi­ pollution linkages; and popular partici­ Environment (LIFE) Fund, could pro­ cators such as land use, pation in environmental management. vide support to municipal administra­ air/water/noise pollution, wastes, trans­ tions and local NGOs for the "soft­ portation and energy use. To observe Some of the conclusions from this ex­ ware" side of environmental the nature, trends and factors that in­ perience are that: improvement: public education, com­ fluence environmental quality in cities, munity organizing, participatory an environmental profile was prepared • there is no uniform environmental by local experts. To discuss and elabo­ agenda for cities of the developing planning and implementation. To en­ rate on the results of the questionnaire world; sure that activities proposed for LIFE and profile, consultations with key citi­ Fund financing have genuine local zens in each city were held, culminat­ • there are, however, specific local en­ support, a commitment by the local­ ing in an environmental town meeting. vironmental concerns that are distinct ity of matching resources (either mon­ from those considered to be part of etary or in-kind) would be necessary. This experience resulted in a consen­ the global environmental agenda; and This type of financing mechanism sus on one or more environmental pri­ would channel some of the interna­ ority in each city. In Accra, the need • where there was overlap between for waste disposal and sanitation was local and global environmental con­ tional environmental wealth to peo­ considered the highest priority. In Ja­ cerns, it was not always for the same ple at the local level who need re­ karta, inadequate waste management reasons. For example, local people sources to address valid issues in was a priority problem, along with dete­ were concerned about green spaces their communities. riorating air and water quality, substan­ for quality-of-life and health reasons, dard housing, inadequate transport, not because of longer-term global con­ Participation and lack of sufficient green space. In sequences such as the greenhouse ef­ One way to open up the decision­ Katowice, the three top concerns were fect or biodiversity. II making process in cities of the develop­ ing world is for international donors to insist on participation as a prerequisite for planning. The MEIP is currently as­ sisting environmental networks in fore they engage in new assistance for In the next century, there may be crit­ Asian cities with the preparation of en­ urban development. ical global environmental problems to vironmental management strategies In sum, the environmental problems be solved. There will certainly be grow­ and action plans. This can be enhanced of citizens in developing world cities ing local environmental impacts that by a participatory agenda-setting exer­ must be distinctly addressed by the in­ will be particularly felt by the ever­ cise that includes data collection, envi­ ternational environmental community growing share of the world's popula­ ronmental profiles, consultations and because of the immediate threats they tion that lives and dies in Third World town meetings. The participatory ap­ pose to human health and productivity, cities. A crucial challenge for these peo­ proach to urban environmental plan­ and because of their linkages with inter­ ple-as well as the forces that set, un­ ning and management is being used derwrite and implement the environ­ generational, global issues. These con­ and refined by the Urban Management mental aid-will be to forge the links cerns need to be articulated by organ­ Program and the UNCHS Sustainable between the submerged brown roots of Cities Programme. It could be further ized urban constituencies that will sustain the demand for environmental the urban Third World and the green vi­ institutionalized by insisting that devel­ improvements. However, the problems sionaries of the 21st century. II opment financiers like the World Bank, and supporters of technical assistance and participation of people living in de­ like the UN agencies, require cities to veloping country cities have largely Editor's Note: Josef Leitmann is an Urban formulate environmental strategies de­ been neglected by international envi­ Planner in the Infrastructure and Urban veloped with public participation be­ ronmental and aid organizations. Department. 4 THE BANK'S WORLD / FEBRUARY 1992 Personnel Initiatives To Be Phased In A Change in Bank Culture In the wake of recent announcements of BA: We used to have ground rules in changes aimed at strengthening Personnel terms of duration of assignment, but as Management, The Bank's World inter­ long as I've been at the Bank, the sys­ viewed Bilsel Alisbah, Vice President, Per­ tem has worked on the basis of people sonnel and Administration. Here are ex­ choosing each other. It's a sensitive and Bilsel Alisbah cerpts from this interview: difficult subject. We don't want to run an army exercise where one simply ~ You recently announced in an gets "orders" without any prior discus­ it's over, it'll all go into a folder in a • FYI that a special study of the sion and planning. What we do want is file drawer..." Will there be any kind Personnel function had been to have much more serious career dis­ of database that will store this infor­ completed. Over the past few years, cussions and planning so that every mation? there have been many studies and three or four years individuals will be BA: Yes. Developing a usable many shifts in the way Personnel has able to look into sensible career possi­ database from the information is going worked. What makes this particular bilities and options, and future assign­ to be a very important part of what we study any different? ments will need to be consistent with need to do. Right now, when someone BA: What's different about this, and these discussions. comes to me and says, ''You don't want what's new, is that we're trying to Q: Who would they discuss this me to use Mr. X or Mr. Y for this job be­ change the Bank culture in some fairly with? cause he's been too long in one place, basic ways. Right now, although we BA: The manager and the Personnel or he's already been on too many resi­ may have to make value judgments in Officer, who will both have signifi­ dent assignments, so tell me who terms of budgetary resources, we know cant-and different-inputs. First, the should I use..." I don't have a very good that, at the end of the day, we'll be individual staff member is going to system to provide the answer. The VIS given a budget and have to work have some views. "What are the things is there, but not everybody for whom within that. But we have a totally differ­ I think I should do in the coming two this may be right may be reading it. ent approach when it comes to staffing. or three assignments?" The manager, Some who read it and respond have Managers want to select exactly who with support from Personnel, will be in . been in an assignment only two years, they want, be it from the inside or the a good position to help answer that where it doesn't make institutional outside. And staff very much make the question. After all, the manager ought sense for them to move ... Others who decision when they want to move, and to know the staff member well. And apply may be from within the same whether they like or don't like the new the Personnel Officer, who has been unit, which feeds the perception that a boss. In others words, the process is working with that person, should also lot of these assignments are fixed. very ad hoc and driven largely by the be able to make an input. By summariz­ Q: Right now at the Bank, we find preferences of managers and the prefer­ ing all these inputs, you'll have a re­ most Operations staff stay with Opera­ ences of staff. With this kind of a sys­ cord of what the next steps for this per­ tions, while Finance stays with Fi­ tem, it's very hard to accommodate the son should be. And this will be nance, Admin with Admin, etc. Do legitimate career aspirations of some­ valuable, because when the time you see this latest exercise as provid­ one who has been, say, six or seven comes, one will be able to say, 'Well, ing a breakdown of these walls? years in Africa, and who needs to be ex­ here's an assignment which fits in with BA: We definitely need to break posed to a different part of the Bank the options reviewed with you, and the down these walls. Incidentally, they and to different experiences. Right institution would like you to do it." It exist even within different parts of Op­ now, with the existing system it's hard will be something that has been dis­ erations, and different parts of Finance. to deliver on this kind of genuine need. cussed, considered and, hopefuU y, But one has to recognize that there are Q: Didn't we, years ago, have a sys­ agreed upon before. certain disciplines where career paths tem whereby after a certain number of Q: Those among us who are a bit and career aspirations have to stay years in one area, you had to move to cynical might tend to think, "Well, within a given area. Take Personnel. If another slot? we'll have this discussion, and when someone is a trained human resources THE BANK'S WORLD / FEBRUARY 1992 5 success. We will share these with staff BA: There's "'lr,::'",r\U a lot so that can as well. I m(~ntlorlea resident missions earlier. Personnel. But we have to ensure that benchmark would be there is a sensible and career sessment centers to in Personnel. fice mcmagelrs The whole career stream initiative This we've been V" .... n- on is in those HTI"'..... areas that need to more de­ fined. It seems as if the assessment of How are you to ensure managers will remain very n'n1l"ll11.rt~.nt more honest assessments? BA: One of our curses is that BA: This is to which Mr. whether there's a chance to remove bar­ mance assessments are not a Preston and the riers between this level and that est If we're to tach very this will down walls and staff to rotate to set nv·........ r-ol'"'' more to be managers. we'll need to have a that includes incentives and ctl~ancerltn/es est assessments. You I've re- It'll be to reoognllze been involved in the reclsslgrl­ ment of a number of staff on some missions. have some u,-c>uu'.u marks about the managers of intend to have additional Sounds like a Catch-22. staff. In the this is where l.leJ:so:nn~el Officers? BA: There is a Catch-22 Dh4E'n()mE~nOln the Personnel Officers will have to BA: In the there's the tennDl:atlon to throw more resources at of that. case." an mt:egrat:ect can create a Does this initiative take women deal of pres­ sure on pas. to, then the becomes much less de­ into account? Does Mr. Preston share • . . ~u" .. h for POs. So in my sim­ A.. Mr. Conable's wish to have more more POs is less critical level Do:sition:s? a that can them. What about trailnillg? on how accelera te our nrr... o-....oc:c: There are still Df()blerrlS become more should be DushlnQ: eXiHl1lpl~F:, when we're think- criti­ mance and career are done ..........r' .....o ..... hr then that will be the career sense?" A sensible career the +.... "',,.,i .... o- needs to be defined before person now, writes goes to the resident mission. down the names of a few courses and How will you know when all that's a this is well? BA: The Attitude will be one indicator. A lot of the dissatisfaction is manifested there. as the President mentioned in his letter to we'll be establlsJhmlg benchmarks to measure 21 us. 6 THE BANK'S WORLD! FEBRUARY Keeping Up With the Times showed that the Bank's use of FOCUS on an IBM mainframe at one outside computing company had doubled IBM Facility Center every year between 1977 and 1980 and was projected to cost approximately $1 million in FY81. Marks Its First Decade "As a user rep, I saw staff using out­ side computing at a spiraling rate," says Peter Hsueh, now Chief of ITF's by Maureen Miller Communications Division, "so I started preparing a business plan to bring in an IBM mainframe which could run FOCUS and other software. The basic decade ago, in August 1981, the By 1976, with the regional organiza­ A IBM Facility Center (IBMFC) opened its doors and ushered in a new era in technology at the Bank. tion in place, it became clear that the Bank's computer-based management systems were not organized around the service was to be based on chargeback. Users would pay only for the amount of computing they used, just as they were doing at the outside companies. As the first manager of the IBMFC not regions' needs. Mike Ruddy, then Pro­ This was a first for the Bank, and it was to have witnessed its inception, I de­ gram Coordinator of the East Asia Re­ very difficult for the institution to rec­ cided to look into the Center's past by gion, saw FOCUS as a solution to this ognize this concept of chargeback since taking a walk down memory lane wi th problem. "In the late '70s, after I sent a its founders and early users. this was a type of entrepreneurship. In summer intern, Tauheed Ahmed, to order to convince PBD to put up the When you look at the computing school for a few weeks to learn FOCUS, money, I had to get letters of intent power in the Bank today, it seems hard we started to develop applications that from potential users of the service. to believe that a mere 10 years ago the evolved into the first regional Manage­ There were two people daring enough Bank relied on one Burroughs main­ ment Information System (MIS)." As to sign-Rick Barry, then Program Co­ frame computer run by the centralized Mr. Ahmed, now head of Accounting ordinator for East Africa Region, and Computing Activities Department Systems Division, remembers, ''The Mike Ruddy." (CAD) for the majority of its computing first application we built on FOCUS In early 1981, the Bank decided to set workload. "CAD had your traditional proved very useful in eliminating a lot up the IBM Facility Center. Mr. Hsueh big mainframe with centralized com­ of manual work needed each month to recalls: "There was a core team of four: puter people doing studies," reminisces prepare tables on the status of the lend­ Carlos Ferreira, Karl Jahr, Ben Mirman Mike Ruddy, Director of the Accounting ing program." and I, and a User's Group (now the Department. 'The time between the state­ Jed Shilling, Manager of Financial IBM Advisory Group) headed by Jed ment of a problem and its resolution was Advisory Services, Cofinancing and Fi­ Shilling, with representatives from Op­ long, and it took extensive resources for nancial Advisory Services (CFS), was erations and Finance." the central computing people to under­ also using outside computing services. "The users wanted involvement stand the problem." "I was trying to get what is now the from the start," remembers George As a result, by the late '70s, more Bank Economic and Social Database West, current Chairman of the IBM Ad­ and more staff began going outside to started," he says. visory Group. "They didn't want the get their computing work done. And Certainly there were advantages to machine to become overloaded and the most often this choice was prompted using outside computing services­ service to degrade." by a decision to use FOCUS, an easy-to­ good turnaround, access to software And the potential users wanted con­ use data management software pack­ that didn't exist in-house, the ability to trol over how the resources were allo­ age available then only on IBM. do your own analysis, design and pro­ cated. "Chargeback was necessary," "I remember the first time I used gramming. But there was also a strong says Mr. Ruddy, "otherwise demand FOCUS in 1978," relates Tony Allen of drawback: cost. In fact, a CAD study would be infinite, and you would the Programming and Budgeting De­ partment (PBD). "My department direc­ tor wanted me to make changes on Left to right: Karl Jahr, Maureen Miller, Carlos Ferreira and staff of the IBMFC, cutting the some tables I had produced for then­ anniversary cake. hoto by Michele lannacci President Robert McNamara. He had told Mr. McNamara that it would take two weeks to make those changes, and he was sweating that even that might be a low estimate. Normally, he'd have been right. But when he asked me then how long it would take, and I told him 10 minutes, he almost fell out of his chair! That was the power of FOCUS." never be able to get the budget people Mr. Jahr relates: "When we needed rTF Director Hywel Davis remem­ to agree to a growth of 30 to 40 percent an operator, we would borrow a guy bers that "I was spending three-quar­ a year." from Burroughs. Then, in the summer ters of a million dollars for outside com­ Mr. Shilling remembers that "the of '82, they couldn't provide anyone, so puting. That dropped to $380,000 once User Group had policy control. It was a we hired a kid straight out of high we brought it in-house." As more appli­ very interesting, very dynamic group school, Kyle Cummings." cations are developed and more users that worked very well. We had a lot of "Kyle was very smart, curious and come on, the Center has reduced its philosophical discourse on how to man­ learned very quickly," says Mr. rates consistently through the years. A age. We decided on the hardware and Ferreira. "He taught himself all the recent cost-comparison study with out­ software and that there would be differ­ commands in the operators manual by side vendors show IBM mainframe com­ ent prices for different times of day." trying out each and seeing what it did. puting to be about 20 percent below cur­ Karl Jahr recollects, "It was a crazy One day he came to the end of the man­ rent market costs. ''The staff in the time. The IBMFC team had formed in ual and entered the 'z' command, the Center take it upon themselves to ensure late February. We were told 'yes, go last command in the book, to celebrate. that cost comes down 30 percent a year," ahead,' but we didn't have a computer Well, 'z' was the abbreviation for 'halt,' says Ganesan Sekar, a Software Special­ room and we didn't have a computer. so when he entered that command, the ist with the Center. 'We're very proud of We got word on April 1 that we would whole system went down-at 3 in the that and will do everything possible to have a machine and we would go live afternoon!" ensure it continues." on August 22." In 1981, the Center had a 3031 IBM One of the greatest challenges has In July 1981, the first IBM mainframe mainframe, one operating system and been dealing with ever-increasing de­ was installed in the Bank. 'We had a mand for service. Ben Boyle, also with very short time to put the whole thing the Center, asserts that "one of the keys If you are interested in further informa­ together," recalls Carlos Ferreira. "We tion or would like a tour of the IBM Fa­ to our success is teamwork, both were working 12-hour days. I was in cility, send an EM to Maureen Miller. within the Center, with the Advisory Group, and with application system charge of selecting the hardware op­ managers." Staff who join the Center tions and doing the installation of the are also expected to answer any and all software." one major software package (FOCUS), calls and questions that users have as Mr. Ahmed remembers this period 50 userids, and a volume of $700,000 quickly and professionally as possible. from a user viewpoint. "The transition per year. Today, the Center has an IBM The IBM Advisory Group, whose mem­ wasn't too bad, but I kept in the back of 3090 500J computer with 100 times the bershi p is open to all users of the Cen­ my mind that I would go back outside processing power of the 3031, two oper­ ter, meets monthly, and the operating if the service was not what I expected." ating systems (VM/CMS and MVS), and financial status is discussed at each The staff at the Center also had this database and statistical and economet­ meeting. thought in mind. "We were preoccu­ ric software as well as the major pro­ "The span of users has increased," pied that people would not be hooked gramming languages, and a volume of notes Raju Kocharekar, another of the to the Center," says Mr. Ferreira. "It $8.5 million per year. More than 5,000 Center's staff. "From secretaries to ap­ was a big trial chargeback, which staff access the IBM mainframe for plication developers, we deal with peo­ might not work. So we made sure that ple with a wide variety of expertise." some part of their work. Major applica­ once an application could be run at the 'We're very service oriented," says tions include the Operations Manage­ Center, it could be taken out and run Monika Quigley, also of the Center. ''The ment Information System (OPSMIS), anywhere-no hooks." customer always comes first. We are al­ the Bank Economic and Social Database In a cost-conscious manner, all hard­ ways learning-new software, bugs in (BESD), the Budget Accounting System ware was bought from the used mar­ old software, ways to help users make (BAS), the Comprehensive Human Re­ ket. "I remember that the CAD Director their codes more efficient. We make mis­ was in favor of buying a brand new source Information Services (CHRIS), the takes, just like Kyle did back then, but box that was twice as much as what we Investment Department's FUNDTRAC we try not to make them twice." wanted to spend. But we went to the system, and GSD's Materials Manage­ The users see the result of this philoso­ used market and cut the price in half," ment System. Additionally, in April 1991, phy. "The service at the IBMFC has been says Mr. Allen. "Everything was used, the IMF moved all its IBM mainframe so good that I quickly forgot all about as far as hardware went," remembers computing to the Center. going back to an outside service," admits Mr. Ferreira. And every penny was "The IBMFC started off with a good Mr. Ahmed. "I've always been pleased counted since the goal (which was foundation, and its basic operating with their general performance." reached) was to recover the full cost of principles have guided subsequent evo­ What I have learned from those I've in­ the Center in the first year. In another lution," states Mr. Ruddy. ''The whole terviewed is that it took a cooperative ef­ cost-savings effort, the Center was orig­ idea was to provide a cost-effective ser­ fort on all sides to make the IBMFC a suc­ inally set up not to need operator sup­ vice with a close working relationship cess. Mr. Ruddy has said, "People port. "Anyone could bring the system between the service provider and the continue to be satisfied, and in a bureau­ back up if it went down," Mr. Ferreira user," says Peter Hsueh. "When we cracy that's not easy to achieve." claims. "And once we went more than started our business, we were 15 per­ It is important that we continue this 60 days without interruption in service." cent below the market rates." tradition of cooperation. III 8 THE BANK'S WORLD / FEBRUARY 1992 _0·--- .__ _ _ 00·.· _ . ~ .On the Record Latin America: Protecting Children's Nutrition During the Adjustment Marcelo Selowsky The following are excerpts from a presentation made last year by a modest reallocation of the budget can increase the level of LAC Chief Economist Marcelo Selowsky at the 18th Session of consumption of these groups significantly. In many coun­ the United Nations Subcommittee on Nutrition. tries there also is significant room to increase tax revenues by improving tax collection and eliminating loopholes and I n Latin America and the Caribbean some 10 million pre­ school children are undernourished, almost one-fifth of the population in that age group. Malnutrition at that early exemptions. Cost recovery in services, usually provided free to middle and high income groups, is an important po­ tential source of revenue. age not only increases illness and mortality but also retards What is the cost of a nutrition program well targeted at learning. School learning-and hence the productivity of in­ the most vulnerable groups? A recent Bank study, "Feeding vesting in basic education-is impaired by early malnutri­ America's Children," by PhHip Musgrove, which compares tion and disease. The final effect is less healthy and produc­ the experience of 100 programs in 19 Latin American coun­ tive individuals later in life. tries, provides some information. School feeding and take The regional average, however, masks significant differ­ home supplementary feeding programs for pre-schoolers ences across countries. Low-income countries such as Haiti can be successfully implemented for less that $75 per child and Guatemala have an incidence of pre-school malnutri­ per year. A program could, therefore, be aimed at 10 per­ tion in the range of 35 percent, while in Chile and Costa cent of the population while costing 1 percent of GOP if the Rica that figure is below 5 percent. But per capita income country has a $750 per capita income. If the per capita in­ levels are only part of the story. Brazil, with a per capita in­ come is $1500, the cost will be one-half of 1 percent of GOP. come significantly higher than Chile and Costa Rica, has an These are not large amounts relative to the resources one incidence of early malnutrition equal to 30 percent-six can obtain by restructuring the public sector and improving times higher. The ability of governments to reallocate and the tax system of the Latin American economies. And these target social services to the most vulnerable groups appears targeted programs can replace the past practice of using more important than a country's overall level of resources. general food subsidies as the vehicle to protect nutrition. And this is particularly relevant for Latin America. General subsidies either misallocated resources-when fi­ Few trade-offs nanced by taxing farmers, or were unsustainable-when fi­ nanced by the budget. In Latin America, there are few trade­ Most adjustment programs call for both a reduction in offs between the goals of the adjustment and protecting public sector deficits and reforms to increase overall effi­ nutrition in the most vulnerable groups. ciency-such as trade reforms and decontrol of prices, unifi­ cation of exchange rates and reallocation of government ex­ Adjustment operations penditures and functions. They are crucial to restoring stability and eventually growth. In the short run some of During the last three years, nutrition objectives have the most vulnerable groups may gain-those associated been incorporated into several of the Bank's adjustment op­ with agriculture and exports. Some may get hurt-those liv­ erations in Latin America. They provide a vehicle to reach ing in urban areas and employed in sectors that contract agreement on important reallocation of the country's own during the adjustment. But the best way to protect the pur­ resources toward these programs. And these reallocations chasing power of these groups is not by modifying or slow­ can be significantly larger than the resources the Bank ing down these basic reforms. Rather, the appropriate vehi­ could provide directly through an investment project. But cle is a sharp reallocation of public expenditure toward an increased willingness to reallocate funds is not enough. these groups, a strategy that has a particularly high poten­ The institutions of delivery must be strengthened, and this tial for Latin America. will take time. Adjustment operations have to be accompa­ In Latin America the poorest 20 percent of the population nied by specific projects to strengthen the institutions of de­ receives about 4 percent of GOP. Public expenditures ac­ livery to assure the success of health and nutrition pro­ count for between one-quarter and one-third of GOP. Thus, grams. THE BANK'S WORLD I FEBRUARY 1992 9 The Venezuela Structural Adjustment Loan (SAL) sup­ under 5 as well as poor families under threshold income ported the unification of exchange rates and the sharp re­ levels. About 12 percent of the population is being reached duction of subsidies to inputs such as fertilizer and animal with the program. The table shows the distributive effect of feed. These subsidies were not only inefficient but also ineq­ general and targeted food subsidies in Jamaica. Transfer­ uitable, subsidizing the consumption of meat across the ring resources to targeted programs sharply increases the overall population. Instead of general subsidies, a program benefits received by the poorest groups. of targeted interventions was put in place. This included grants and food vouchers to low-income families provided Jamaica: General and Targeted Subsidies through schools, school feeding programs in poor neighbor­ Distribution of Benefits (%) hoods and improved nutrition and health care for pregnant mothers and pre-schoolers through an expanded day care General Food Food School system. Since 1989, Venezuela has increased the funding of Subsidies Stamps Feeding these programs ninefold. Today expenditures reach almost $600 million, over 1 percent of GOP. Poorest 20% 14 31 32 To protect consumption and promote domestic food pro­ Richest 20% 26 8 10 duction, Mexico has in the past subsidized the consump­ tion and sometimes the production of particular foodstuffs. But many of these subsidies were untargeted, resulting in Panama has just started an adjustment program to be large fiscal outlays and bypassing some of the neediest supported by the upcoming Bank Economic Recovery Loan. groups. Thus, the Government is now in the process of Present nutrition programs focus on school feeding in the quickly transferring these subsidies to more targeted pro­ poorest regions. However, these programs are under­ grams. On the basis of a joint study on food consumption budgeted and, due to administrative problems, an even and evaluation of existing programs, the Mexico AGSAL II smaller amount is actually being spent. Supported by the is supporting a strategy of gradually using the health sys­ Bank loan, the government will start a nutrition program tem as the mechanism to identify the groups at risk-espe­ that will also cover lactating mothers and pre-schoolers. A cially in rural areas-through the monitoring of pregnant pilot program of food coupons to be distributed by health and lactating mothers and the nutrition status of small chil­ centers to the most vulnerable families will be comple­ dren, particularly those under 5 years of age. mented with a program of vaccinations and growth moni­ In El Salvador, malnutrition in young children is above toring. The program will be expanded to cover between 50 percent in the poorest areas, and iron deficiency ane­ 100,000 and 150,000 beneficiaries. mia-an indication of maternal malnutrition-affects about 40 percent of pregnant women. The enormous decline in so­ Investment projects and social funds cial spending in the late 1980s has resulted in the progres­ Investment loans disburse at a pace determined by the sive deterioration of health, nutrition, and education ser­ physical progress of the project. They become ideal when vices. A comprehensive adjustment program has been supporting institutional changes and the development of started while providing a safety net for the most vulnerable delivery systems--<:rucial in the social sectors. Social Funds groups. The El Salvador SAL includes an agreement to im­ are wholesale operations financed by multiple donors plement a targeted nutrition program and to increase social which are channeled to small, demand-driven sub-projects spending. The Government has identified the vulnerable usually targeted to poor beneficiaries. Both types of opera­ groups to receive assistance and will first introduce a pilot tions have become important in protecting nutrition in nutrition program coordinated with the World Food Pro­ poor children. gram. It will then expand the program by introducing in­ In Chile, a recent Primary Education Project will finance fant foods through health posts and by starting a pilot proj­ 80,000 daily food rations to 5-year-old, low-income children ect of food coupons. The companion Social Sector attending pre-school. In Bolivia, an Integrated Health Proj­ Rehabilitation Project will include a nutrition surveillance ect and a new Social Investment Fund will finance the ex­ system and an expansion of child growth monitoring pro­ pansion of pre- and post-natal care and children's nutrition grams. programs in poor communities. In Colombia, the Commu­ In an effort to cushion the effect of the 1986 devaluation, nity Child Care and Nutrition project selects a "community Jamaica implemented a program of general food subsidies. mother" in poor neighborhoods to provide day care, learn­ Because of the poor targeting properties of such subsidies­ ing activities and nutrition to pre-schoolers of the same the poorest 20 percent were receiving half of the benefits re­ neighborhood. It allows other mothers to work and in­ ceived by the richest 20 percent-the government decided crease their earnings. This pilot project is now being in late 1987 to change its strategy radically. Supported by quickly expanded. A Social Development Project being pre­ the Bank's Social Sector Development Project, the Government pared for Ecuador will emphasize maternal and child health has started to swiftly reallocate general food subsidies to­ care complemented with growth monitoring and food sup­ ward a targeted food stamp program and expand school plementation of mothers and young children. A primary ed­ feeding programs. This operation is a mixture between an ucation project in the Dominican Republic will improve and adjustment and a project operation. It focuses on broad re­ expand school feeding programs in the poorest rural and forms in the social sector while disbursing against a specific periurban areas. Bank-supported Social Funds in Guyana part of the social investment program. The food stamp pro­ and Haiti will finance nutrition supplements for low­ gram covers all pregnant or lactating mothers and children income pregnant mothers and young children at health cen­ 10 THE BANK'S WORLD I FEBRUARY 1992 ters. And, in Honduras, it will finance a pilot food coupon release significant resources in relation to the amounts needed to program where beneficiaries are identified through health finance well-targeted social programs. An important part of the check-ups in health posts. Again, the emphasis will be to Bank activities is to assist countries in the process of restruc­ protect pre-school children and mothers at high risk. turing the state and thus to help release these resources. To then successfully channel these resources to the most Conclusions vulnerable groups, the institutions of delivery must be In Latin America and the Caribbean, the protection of the strengthened. The motivation of their staff has to be im­ health and nutrition status of the most vulnerable groups is proved. They should be able to attract the best managerial perfectly compatible with stabilization and adjustment. talent in society. Their salaries should be as high as those However, it requires, strong reforms in public finances and paid by the central bank or the state petroleum companies. All this requires strong commitments and initiatives in the role of the state. The state must stop subsidizing par­ ticular industries through credit, tax exemptions, weak tax from government leaders. The World Bank can support this collection and procurement practices that unnecessarily process through technical assistance, economic studies, mo­ burden public finances. "Prestige" projects must be elimi­ bilizing cofinancing and its own lending. But, ultimately, nated. Using public enterprises and provincial govern­ progress will depend on the decisiveness of governments to ments as employment creation agencies resulted in an enor­ take the lead. lID mous burden on public finances. Reforms in this area could • For the first time in Central American history, all coun­ tries of the region have democratically elected governments Fighting headed by leaders of a new generation; • The new heads of government are committed to eco­ Poverty nomic and social reforms, including more market-friendly policies, privatization of state enterprises, deregulation, eco­ nomic opening, reduction in budget deficits, and more • focus on social investments; In • Presidents meet regularly and, through frequent con­ sultations at all levels, strengthen their commitment and re­ Central inforce each other's programs; • EI Salvador, Honduras, and Nicaragua have settled America their arrears with the international financial institutions, and both Panama and Guatemala are in the process of nor­ malizing their international financial relations; Rainer B. Steckhan • Efforts at putting in place programs for sustainable growth and at opening access to funds from the financial in­ stitutions, including through bridge loans for arrears clear­ ance, have been strongly supported by large neighboring countries such as Mexico and Venezuela; and Following are excerpts from the Statement made by Rainer B. • There is a growing awareness that the major challenge Steckhan, Director, LA2, at the Xl Summit of Central American facing Central American countries is how to alleviate pov­ Heads of State on Poverty Alleviation in Tegucigalpa, Honduras, erty, and this summit meeting is the first one dedicated ex­ December 12, 1991. This was the first time that the World Bank clusively to poverty alleviation. had been invited to send a representative to a Central American These developments have given us in the World Bank an Summit. opportunity to intensify our assistance program with the Central American countries. The Bank's principal assis­ tance objectives are: (i) to support sound adjustment pro­ A fter many years of economic degradation, political in­ stability, and civil war, the countries of Central Amer­ ica are making major progress in putting in place new polit­ grams through advice and lending; (ii) to help create a fa­ vorable climate for private investment; (iii) to focus project lending on infrastructure, poverty and the environment; ical structures, economic stabilization and adjustment and (iv) to mobilize resources for arrears clearance and de­ plans, and antipoverty programs. Among the dramatic velopment through consultative groups. As a result of the changes which give rise to hope for prosperity and peace in Bank's new leadership role in assisting Central America, the region are the following: 1991 has seen a record lending program of more than $300 • In the wake of the 1990 elections in Nicaragua which million in World Bank loans. These loans include an adjust­ ended the civil war, and the agreement between the guerril­ ment operation each in EI Salvador, Honduras, and Nicara­ las and the Government in EI Salvador, a new spirit of gua, as well as lending for social sector rehabilitation in EI peace is emerging; Salvador; primary education for the poor in Costa Rica; and THE BANK'S WORLD I FEBRUARY 1992 11 a social investment fund in Honduras. In recognition of the praised to reflect the new Government's strategy. Another widespread poverty and fragile balance of payment situa­ project in Honduras is being reactivated to support the tions in Honduras and Nicaragua, the World Bank has de­ Honduran Government's efforts to improve the quality and cided to lend only IDA funds to these countries. In addi­ effectiveness of primary education in rural areas. tion, the World Bank has set up consultative groups for • Regarding medium-term social needs, a social sector each of the five Central American countries which have co­ rehabilitation project for EI Salvador has started to be imple­ ordinated and increased the flow of external resources to mented. The project will provide basic health care, pre­ the Region. primary schooling, and primary education in 80 of the poor­ est municipalities that contain 30 percent of the country's population. It will also support government reform efforts T he World Bank has been supporting economic stabiliza­ tion and adjustment programs in six Central American countries. Moreover, the World Bank has focused on in­ in the social sector. • Finally, the World Bank's Board of Directors has re­ creasing the efficiency of social spending programs that can cently approved a loan to Costa Rica, to be jointly financed alleviate poverty. As a first step, the Bank convened a work­ with the Inter-American Development Bank, to support a shop for Central America that brought together representa­ basic education rehabilitation project that includes: (i) im­ tives from Central American governments, the donor com­ provements in the quality of education through curriculum munity, and NGOs to discuss the international experience revision, the production and distribution of textbooks and of social investment funds and other programs for poverty teaching materials; (ii) an in-service training program for alleviation and the need for complementary financial assis­ teachers and administrators; and (iii) the rehabilitation and tance. The workshop took place mid-1990 within the Con­ improvement of school buildings and facilities in the poor­ sultative Group framework. Following the recommenda­ est rural and urban areas of the country. tions of the workshop, the Bank, in collaboration with all of the Central American governments, has been analyzing the dimensions of the poverty problems, identifying their causes and helping to formulate strategies for poverty alle­ viation and human resources development. The Bank com­ L ooking to the future, we are now contemplating loans of up to $250 million that will be targeted to benefit the poorest segments of the population. This amounts to up to pleted major social sector studies in Costa Rica, EI Salvador, a quarter of the Bank's contemplated lending to Central and Honduras last year. We have embarked on a new pov­ America and Panama for the next three years or so. This erty and population study in EI Salvador, and studies on portion is much higher than the global portion of the World health and nutrition in Nicaragua and Costa Rica. We are Bank's past lending for social sectors, which amounts to planning sector analysis work in Guatemala and Panama less than 10 percent. In Costa Rica, Honduras, and Panama, for next year. we are contemplating the financing of health projects. In EI Based on these studies, the World Bank has sharply ex­ Salvador, we are planning to follow up the social sector re­ panded its efforts to improve social services to low-income habilitation project by emphasizing investments in infra­ groups among the 30 million Central Americans. We at the structure. In Nicaragua, we are starting work on a social World Bank are confident that the prospects for improving sector project to protect the poor during structural adjust­ the quality of life of the poor people of Central America are ment, while improving the equity and efficiency of the de­ brighter now than they have been in a long time. These im­ livery of social services. proved prospects have been an important stimulus motiva­ In addition to project financing, we have worked with ting the World Bank to enlarge its contribution to reducing UNDP to establish a regional unit to provide technical assis­ illiteracy, disease, and malnutrition in this region during tance in the social sectors to the countries in the region. the past year. Our confidence in the prospects for poverty al­ This regional unit will work closely with a counterpart na­ leviation in Central America rests on the strong declara­ tional unit in each country to accelerate the preparation of tions and commitments of Central American governments the individual projects just discussed and will enlarge the to improving the education, health, and nutrition of the institutional capacity of Central American countries to im­ poor, especially women and children. This will not only im­ plement and operate social sector projects. The proposal to prove the quality of their lives, but will also greatly en­ create this unit, called RUTA SOCIAL, grows out of the suc­ hance their income-earning capacity. Therefore, we at the cessful experience with a similar regional unit- called Bank believe that investment in human capital is consistent RUTA-Iocated in San Jose, Costa Rica, that provides tech­ with both poverty alleviation and economic growth. nical assistance in agriculture. RUTA SOCIAL would pro­ Let me briefly describe the social investment projects that vide assistance on ways and means to expand the financing we have financed within the last years. In designing our and efficient delivery of social services for the poor, espe­ program, we have followed a two-pronged approach which cially basic education, primary health care, and nutrition as­ focuses on short-term and medium-term needs: sistance. • In Honduras, the Bank has financed a social invest­ With the help of the international community, the elected ment project with the specific objectives of creating employ­ governments of Central America have begun to respond ment and income among the poor and reducing mortality, vigorously to the aspirations of their peoples. Fernando malnutrition and illiteracy, particularly among women and Llort a Salvadorean painter and poet, put these aspirations children. A follow-up project is under preparation. A sim­ in these terms: "We are still waiting for justice and peace. ilar project was prepared for Guatemala with the previous Give us peace and food-a peace that will extend to every Guatemalan Government, and is soon going to be ap­ place, temple and school." II 12 THE BANK'S WORLD / FEBRUARY 1992 I'd Even Want to Live Here A Great Place to Work by Thierry Sagnier The peripatetic Oscar-some of whose ad­ I am accustomed to Oscar speaking saw several shirts in a dry cleaning bag ventures have been recounted in earlier is­ in Capital Letters. His car, for example, hanging from a hook on his door. sues of The Bank's World-has returned is not a car but The Car. His son Frodo "Oscar," I asked with as reasonable a to Headquarters after a three-year stint in is The Boy. And Hildegard is, of course, tone of voice as I could muster, "have one of our more remote Resident Missions. The Wife. you gone quite mad?" Older, wiser and more cosmopolitan than "Come," he gestured. "Close the door He took umbrage at that. "Mad? Me? ever, Oscar sees his life once again take an and I'll tell you something that changed Why, I let you in on the secret of the unexpected turn. my life. Absolutely topsy-turvy." ages and you call me mad? Ha! I am I entered and sat down. certainly not mad; I've simply outdone iI] y friend Oscar and his wife, Hildegard, have decided to live (temporarily, it is hoped) "You know, of course, that the Bank has recognized the importance of my Many Contributions to the institution's myself. Fooled them all, I have. Wretched Wife, wretched Dog and that wastrel Frodo. They think they've out­ smarted me, when it is I, Oscar, who apart. Marital discord, so they say. She well-being and has chosen to compen­ blames him, he blames her. Personally, sate me adequately. has not only made the best of a dire sit­ my sympathies lie with Hildegard. I re­ "I was, however, saddled with Great uation, but has shown a profit as well. member how Oscar carried on during Expenses." Oscar's eyes turned sad, as Look at me," he commanded. the loan negotiations with the team they always do when he refers to outgo­ "I look well, don't I?" from... but that's another story, unfit for ing moneys. ''The mortgage, utilities, I agreed that he did. these pages. telephone, car payments, food bills. "And not a penny does it cost me. Be that as it may, I went to see Oscar, Not to mention the maid, the gardener I've benefited in other ways, too. My quite ready to lend a manly shoulder and answering service. And the handy­ Boss is deeply impressed: I am here during this trial of his, and, as always, man, why. .." He blustered a bit, took a when he arrives in the morning and Oscar surprised me. Where I expected deep breath and continued more still here when he leaves at night. He to encounter a haggard, ill-fed and rum­ calmly. "They pauperized me, is what once misdialed and accidentally called pled Banker, I instead came nose-to­ they did. Drained My Accounts. I was here at midnight, when he meant to nose with a splendid, well-rested and bankrupt, relatively speaking! But call home, and I was still here. That, he obviously happy colleague. now," he paused for effect, "now, I've thinks, is true-blue loyalty. He consid­ His shoes bore a lustrous shine, the fooled them all. ers me his best worker-which of creases of his trousers were knife-like, "I live here, you see." He made a course I am-and has hinted my long his Oxford button-down was properly sweeping gesture which, perhaps a hours at the office may make me de­ buttoned. Every hair on his head was hundred years earlier, might have be­ serving of a promotion." meticulously arranged in a style I longed to Peter the Great showing off I hesitated, decided against interrupt­ might call somewhat passe, but never­ The Hermitage. "This," he opened his ing him, so he continued. theless quite striking. He looked, in a arms wide, "is My Home." "I go to the I building and take a word, sleek. I took a surreptitious look around. shower in the morning and another at "Ha!" he said. (Oscar, though not Oscar's office is perhaps slightly larger night, followed by a sauna. Have you British, has perfected what he believes than most. It has two chairs, a sofa and been to the I building exercise room? are British affectations. "Ha!" if I re­ a small conference table. Though not a I work out there. Keeps me trim. It' s member correctly, is how Wodehouse's department director, he is the proud quite neat, really. There's always a Bertie Wooster greeted his bosom bud­ possessor of both a leather pencil cup stray towel drying, and I've been dies at the Drones Club.) (from which peeked a pink toothbrush) lucky finding bars of soap, though I "Ha!" he repeated. and a blotter holder. There was a care­ did have to purchase my own sham­ "Ha to you!" I replied. "You seem to fully folded blue moving van blanket poo and conditioner. The sauna ac­ be bearing up well, considering the cir­ lying beneath one of the chairs. For the counts for my rosy complexion, as cumstances." first time since I'd entered, Oscar does the food. Oscar smiled in response. "I am," he looked somewhat abashed. "A nutritious breakfast and a vita­ said, "in the pink, as they say. Perfectly "Got that in the J building when Af­ min-laden lunch, and a choice of well, thank you. Doing fine and, I might rica region was moving. It gets chilly at menus, at that. With all the cafeterias add, dandy. To coin a phrase, I couldn't night here sometimes. The air condi­ around, I sometimes hardly know be better." He lowered his voice conspira­ tioning, you know..." where I want to eat. My evenings are torially. ''You know," he added, "I do And so it dawned on me. Oscar was occupied watching the televison in my think I've found The Secret." indeed living here. In his office. Then I VP's office-'Wonder Years' is quite en- THE BANK'S WORLD I FEBRUARY 1992 13 tertaining this season-and if I need a "The dry cleaning establishment on from Metro; virtually next door to the real treat, I rent a film from Tower G Street," he continued, "is more than White House-and let's face it, ifthe Video. I prepare popcorn in the E adequate-four shirts for the price of neighborhood is good enough for Presi­ building microwave, so it's just like three, on a hanger and no starch, if you dent Bush, it's good enough for me..." going to the movies, but far less please-and I no longer have to walk I didn't have the heart to tell Oscar the costly! And if I feel like being social, that piteous dog of mine. No maid, ei­ rumor I'd heard that his division might there are all those evening activities ther. The cleaning people are really very be moving. Word has it there's a space so graciously provided by the Bank, thorough. I have the latest Bank tech­ shortage and Oscar will be relocated in you know, the Happy Hours and the nology at my disposal." He nodded to­ rented space several blocks north. discos and the concerts in the neigh­ wards his Pc. "That's a 386 Dx with I got up and left his office quietly. borhood. Once, I snuck into a fare­ lots of bytes and megaherz and cache His back was to me, and the last words well reception for someone or other and cereal ports. I'm not exactly sure I heard were: "I'm working on getting and was first in line for the shrimp. I what it all means, but it is impressive. a key to the laundry room. Clean tow­ think the host spotted me, but not be­ "I keep The Car in the garage where els and such. And I won't have to wash fore I grabbed a handful of those little it's accessible night and day. And look my socks and underwear in the men's meatballs on toothpicks. They were at My View," he pointed toward the room sink anymore. The soap there re­ excellent ... " For a minute, it seemed window. "Breathtaking... Why, I could ally is rather harsh." II1II as if Oscar's mind wandered. The go on and on! This is the very best meatballs on toothpicks had obvi­ place I have ever lived in! Minutes ously impressed him. He shimmered away from Georgetown, Dupont Circle Editor's note: Any resemblance between back to reality with a sigh. and Adams Morgan; a hop-and-a-skip Oscar and anyone else is purely coincidental. • Back to Ba lCS by David Delmonte Chairman, Staff Association his month marks the 20th anni­ pose-the Staff Association at 20," pub­ The SA is, I believe, uniquely suited T versary of the Staff Associa tion and my first Bank's World column as your elected chairman for 1992. I lished recently, it is described as "a con­ tinuing, significant and necessary force in the Bank's evolution from a relatively small to the cooperative, international charac­ ter of the Bank. Staff have been drawn to work in the SA through the same have spoken to many people in the development institution with well­ commitment to public service that de­ past few weeks, asking what they think intended but nonetheless paternalistic man­ fines the insti tution. This is reflected in of our work and how we can improve agerial policies towards staff, to the large, the first objective stated in the SA con­ our services. This article will re-state more collaborative organization we work stitution: "to foster a sense of common our role, while the Delegate Assembly for today." The SA's founders felt that purpose among members in promoting puts together our program for this year the aims and objectives of the World an association filled the need to pro­ to make sure the SA remains on track Bank Group." vide staff perspective and focus to man­ for 1992 and beyond. Bank management recognized the agement decisions relating to salaries, First, I'd like to thank the outgoing need for staff input to the decision­ 1991 Executive Committee for its splen­ benefits and career development. making process. The Principles of Em­ did work, especially the Chairman, Chris While the original referendum to ployment were amended in 1983 "in Parel, who steered the SA through two form a Staff Association carried by a view of the paramount importance of years of extremely difficult issues. His nearly unanimous vote, some staff securing the highest standards of effi­ leadership has left the SA in a far were concerned that we were, in effect, ciency and technical competence" and, stronger structural position and has left forming a union; others feared we recognizing that the Bank and IFC are staff with significant improvements in would be only a social club. Neither not "subject to the employment legisla­ working conditions which I will enumer­ were correct. While the SA does not en­ tion of any of their member countries," ate later in this article. gage in formal negotiations with man­ a "special obligation is made to com­ A twenty-year anniversary is a time agement as a union would, far from municate and consult between the man­ to reflect. When the Staff Association being a social club, it plays a serious agement and the staff." was formed, the Bank was beginning to and influential role in personnel man­ To fill this consultative role, the sec­ rapidly expand its operations and staff­ agement and in other areas of Bank ad­ ond objective in the constitution of the ing levels. In "A Sense of Common Pur­ ministration. Staff Association has been to "promote 14 THE BANK'S WORLD / FEBRUARY 1992 and safeguard the rights, interests and unteers quickly become our "experts" tion. This review, popularly called the welfare of the members of the staff." in particular interest areas. Sometimes, Messenger Task Force report, is now Taken together, the two objectives however, we need to augment our opin­ being discussed. We must urge manage­ emphasize the reinforcing goals of pro­ ion with professional technical review ment that any revamping of the person­ moting the institution's purposes, and, by using membership dues, we nel function be imbued with vision and while protecting and promoting the are able to retain consultants or compa­ purpose and that programs developed welfare of the staff. Today, we function nies to provide this assistance. within Personnel be consistent with in a spirit of cooperation with manage­ Membership dues also may support this vision. Specifically, the institution ment to achieve the best and most ap­ staff who are moving through the ap­ needs some long-range planning for propriate results for both the staff and peals process. If a particular case ad­ staffing needs so that we, the existing the institution. All of us in the SA care vances to the Administrative Tribunal, staff, can plan accordingly. Within this deeply for this institution. We realize there may be sizable legal fees in­ effort, attention is needed to increase that the staff embodies the institution volved. If a case seems to have signifi­ the participation of women at senior and that the institution's goals and mis­ cance for many staff, the SA may cover levels in the Bank. At a recent meeting sion belong to us all. all or part of the cost. between Mr. Preston and senior Bank The most effective working groups staff, out of more than 100 partici pants Managers do not stand on ceremony in their day­ less than a dozen were women. As a to-day working relationships with man­ man, I find this embarrassing. While it is the responsibility and ac­ Efforts outside Personnel will in­ agement. Managers find it genuinely countability of staff charged as manag­ clude the Main Complex Rehabilitation useful to have ideas, initiatives and pro­ ers to run the institution-whether and other space planning. We want to posals discussed with the SA working they are getting loans, credits, or invest­ ensure that working hours are spent in groups and the consultation process ments to the Board, setting benefits, environmentally sound workstations usually improves their products. constructing buildings, paying our sala­ and offices. Work units must be al­ ries, or setting various kinds of poli­ The strong working group structure has led to numerous successes for the lowed to tailor their own space needs. cies-we continue to believe, as our founders did, that the best manage­ SA over the years. These successes were led by Executive Committees and Information technology ment decisions, and therefore the best hopes for this institution, will be those Chairmen who devoted tremendous People are making more and more use that incorporate staff views, concerns time and energy to this function and of information technology and the SA is and perspectives. Our founders' vision often did not take credit for their ef­ concerned that technology selection and remains valid today and is still shared forts. In recent years, Chris Redfern's support not only meets institutional by staff-and by management. Executive Committee rode the buffet­ needs but meets staff needs as well. ing of the 1987 reorganization and actu­ The 20-year retrospective mentioned Within a few weeks, you will see the ally helped to reduce institutional dam­ earlier noted that the original thinking results of a strategic review by the new age. If only management had adopted for a staff association found support Delegate Assembly to define its work more of its advice! Ann Hammond's from the Bank's senior managers, in­ program. During the year, I will commu­ Executive Committee succeeded in cluding then-President Robert nicate the status of the program to you making the Attitude Survey an integral McNamara. It still receives this sup­ through this column and the SA Newslet­ part of the institution. Also, under her port. Following my election, Mr. Pres­ ter and I will also report on other issues leadership, the voices of the support ton sent me a letter from which I ex­ confronting the staff and the SA. In an staff were clearly heard for the first cerpt the following: "I am taking a upcoming article, I'd like to focus on the time. And Chris PareI's Executive Com­ strong interest in personnel matters, as you issues surrounding "equity." mittee helped actualize improvements and your colleagues will have realized by to the benefits program, the compensa­ We want to communicate with you­ now. I am also very aware of the Staff tion system, the medical insurance plan and we need you to communicate with Association's important role and contribu­ and the staff retirement plan. us. We need to know your views. It has tion. The Bank should remain an exciting long been the wish of the SA to im­ place to work, and we are committed to prove communications among staff, Attitude surveys working with you and your colleagues to­ their representatives in the Delegate As­ ward that end." 1987 is behind us now and I believe sembly and the working groups. I have Our commitment to working with the institution is on its way to recovery. asked Lisa Fonick, First Vice Chairman management can be seen every day Attitude Surveys should continue to of the 1992 EC, to work with me on through the efforts of our Working monitor our overall health. But there this. We also intend to check in with Groups. These volunteer groups form will always be room for improvement. staff associations at other international the backbone of the Staff Association, For 1992, we will continue to focus organizations to learn from their experi­ providing technical responses to man­ on key issues and concerns of staff. Per­ ences and share appropriate techniques. agement proposals as well as ideas for sonnel department-related issues usu­ If this article has been of use, it has management consideration. We have ally dominate our work program. shown you the scope, successes and more than 30 working groups, each fo­ When Mr. Preston joined the Bank, one dedication of the SA. Now you know cused on different aspects of working of his first communiques to us all initi­ what's coming. To paraphrase Presi­ life at the Bank. Most often, those vol­ ated a review of the Personnel func­ dent Kennedy, I implore each of you to THE BANK'S WORLD I FEBRUARY 1992 15 ask yourself if there is something you secondment, part-time, or local ap­ I speak for the entire Executive Com­ can do for this Association, while it pointments, and to those staff on non­ mittee when I tell you that the 1992 does its best for you. If you are not al­ regular appointments who have served Staff Association will continue to con­ ready a member, join; call the SA office for more than one continuous year. Vol­ centrate on resolving important issues at Ext. 36965. Membership dues are 0.1 unteer for a Working Group. It will be with management. It is our wish-as I percent of your net salary-$10 per hard work, but it will open up new am sure it is yours-to make this insti­ $10,000-paid in two halves, in Febru­ friendships and bring new insights into tution function more smoothly and ef­ ary and November. Membership is the running of this august and vitally fectively, and to make it a better place open to all staff on regular, fixed -term, important institution. to work. II Former Executive Director Responds Whence the Board? Some Comments by Jonas H. Haralz U n his article, "Whence the Board 7" and management, have to be decided for closer contacts. Consultations have in the December issue of The Bank's by the Board. There has also been in­ improved, as Mr. Parel points out, and World, Chris Parel [then] Chairman creasing appreciation of the need for both the Board and the Personnel Pol­ of the Staff Association, raised three presenting policy proposals to the icy Issues Committee (PPIC) have on penetrating and challenging questions Board in a way that makes a meaning­ several occasions indicated their inter­ regarding the Bank Board's under­ ful influence of the Board possible. est in further improvements. I believe, standing of its own role. Being now re­ How this can be done, both with re­ however, that in order for such im­ tired from the Board, and having been gard to general and country policy is­ provements to be realized, two inevita­ induced to reflect upon these issues by sues, is not an easy matter and has ble conditions have to be accepted by Mr. Parel's article, I would like to give been the object of thorough consider­ all parties. The first condition is that some brief comments. ation by Board committees. The work these contacts cannot bypass manage­ The first question is: How do you bal­ of these committees, their deliberations with management, as well as consulta­ ment. The Board has entrusted manage­ ance institutional staff and client country interests with those of your own govern­ tions within the Board, have led to sig­ ment with execution of personnel pol­ ment? nificant improvements of the process, icy and it is bound to maintain intimate My immediate reaction to this ques­ with further results possibly in sight. connections with management in the tion is that I did not see my role at the As the Board's dealing with policy is­ surveillance of this execution as well as Board as an effort of interest-balancing. sues acquires deeper significance, the in the revision of policies. The second Rather, I saw it as an understanding of need the Board may have perceived to condition is that in their contacts, the objectives and functioning of the in­ get involved in the details of manage­ Board, management and staff have to stitution, the communication of that un­ ment will diminish. The Board will, in approach each other openly and with derstanding to my governments, and my view, be concentrating on its full confidence in their mutual good the corresponding communication proper role, the setting and surveil­ will. There should be no semblance of back to the Board, management and lance of policy. opposing lawyers pleading their cases the staff of my governments' views. The third question is: Would it not be before a court. Criticisms should be pre­ The second question is: How do you useful to have greater contact between the sented, mistakes and failures should be define your role and priorities, given the Board and staff? revealed, but also, accomplishments immensity of the Bank? It is clear from Mr. Parel's comments should be acknowledged and credit Again, I would like to emphasize that the contacts he has in mind are given where it ~s due. II that understanding is the key to the an­ those between the Board and the Staff swer-in this case, understanding of Association. It should not be forgotten, what the Board can and should do and however, that the members of the what the management, together with Board, as well as their staff, develop Editor's Note: The writer was Executive staff, is alone able to do. My feeling is close working, and even personal, rela­ Director for the Nordic countries from that, in recent years, the understanding tions with a great number of Bank staff 1988 to 1991 and served during that time of these matters both by the Board and members, which help them to under­ on several Board committees. He was Chair­ the President, as well as the manage­ stand and appreciate the views and atti­ man of the PPIC and the Ad Hoc Board ment team as a whole, has been con­ tudes of staff. As regards the more for­ Procedures Committee during his last year verging toward a reasonable balance. mal rela hons wi th the Staff of service. He was previously a member of There is no disagreement that policy is­ Association, I certainly believe there is the Bank's staff and a consultant to the sues, after careful preparation by staff no lack of desire on behalf of the Board Bank in the 1950s and 1960s. 16 THE BANK'S WORLD / FEBRUARY 1992 Around the Bank ~. , .... .',. .~ ".. ,~ . -,R, iti ·-..,., ' !rU"-' § . ., :t, . ~. '.:~ ," ~~~~!'. .......- ... ~' . ,ff." , ~ r' r , I:. \', · r l~ ~: "',f • ~ I I • • " .4. ·.~ Design a Logo for Literacy Shoebox Collections Roberto Manrique and Maria Nikolov-Feman­ The D.C. Volunteer Council actively promotes dez, both from LA4CO, were among the volun­ volunteerism within the Washington business teers who collected donations to purchase ... t community, and the World Bank is among the . "- ! . a"' l ), i.:.} shoebox gifts that were distributed to the ."!"It~ _ '.~ __ businesses with which it works in partnership. ,~ homeless on Christmas Day. t . 'I ~ Recently, together with the D.C. Adult Literacy Photo by Jose Baigorria Network, the Council sponsored a contest to design a logo for literacy and six winners­ ~' '.~ -.. 1 three adults and three youngsters-attended an Correction awards ceremony at the Bank. Community Re­ .. . .: # .. lations Officer Yose{ Hadar (center) is shown The January issue attributed the South­ here with the winners, including Bank staffer -;. ern Africa Department's "Club Fed Jail" Nan Broadhurst, OPNIS (far right) ... which raised funds for the United Way to ... Soon after, World Bank staff involved with the project were honored by First Lady Barbara Bush AF6PH, In fact, the highly successful at a special ceremony. Kathy Rosen, Art and Design, GSD, and Yosef Hadar went to the White fund raiser involved all of AF6, not just House along with Nan Broadhurst. Photos by Michele lannacci one division. Our apologies. IIIlI In Search Of... Letters to the Editor Since St. Valentine's Day falls on DESPERATELY SEEKING The AnswerLine section of the Janu­ the 14th of this month, we felt suffi­ MAGGIE (AGGIE?) ary Bank's World magazine includes an ciently tender-hearted to reproduce I have tried for two years, since interesting question on how to be the following ad from Washingto­ Disney World, to find you at the World aware of "do's" and "don'ts" in the var­ nian magazine's February issue Bank. Ralph ISO 143-292 Washingtonian ious cultures with which Bank staff in­ with no further comment. IIIlI teract. In addition to the courses and brief­ ing books available in the Resource Room, as mentioned in Mary Brady's response, I'd like to mention a book I 01BecJ'lYBE'£:JB was lucky to find when I joined the I'D LIKE 10 SAi SOI'lEiIW-IG­ W~ WCRK ~ 1tA1<:D TO W~1E SLOW})()WN! Asia Region three years ago, This publi­ 51"EAKINGOIO ~ALL -nlE"F'!:d\.E so MllC.H,.so FA~T, A130Jr TAKE A BREAK! cation is called "Asian Customs & Man­ \N~NftiflDN. 'WI-'C "PROIJUCE IT­ All. -rnEII-\I~GS I'M I CAN'T KEEP uP ) SUPPcSEDlO 1(Jo¥:1W ' Wrrn IT "L1..~ ners" by Kevin Chambers (Simon & J Schuster). It has 15 chapters, each de­ voted to a different country in Asia. I take the book along wi th me when I go on mission and, while in the plane, I read the chapter about the country I'm I· 1'';'" - going to. I'm sure other colleagues can also comment on similar books for other regions. Mauricio J. Mathov, ASTIF THE BANK'S WORLD / FEBRUARY 1992 17 Senior Staff Appointments Ian Bridge Australian Manager, Special Operations Unit, IFC, effective January 1. Alfred T. Heron American Projects Ad viser, Office of the Director, Country Department II, Middle East Janet de Merode and North Africa Region, American effective February 10. Dennis Mahar American Chief, Industry and Energy Division, Country Chief, Environment Department II, East Asia. Division, Teclmical and Pacific Region, effective Department, LAC Region, February 15. effective March 2. Sven Burmester Danish Resident Representative of the newly-established Resident Mission, Arab Republic of Egypt, effective January 1. Adil J. Kanaan Lebanese Chief, Country Operations Division/Baltics, Country Department III, Europe and Elkyn Chaparro Central Asia Region, Colombian effective January 1. Anil Malhotra Indian Chief, Regional Mission, Senegal, effective Chief, Energy Division, . November 1991. Technical Department, ASIa Region, effective January 1. Salah Darghouth Tunisian Chief, Agriculture Divisio.n, Sahelian Department, Afnca Region, effective November 1, 1991. 18 THE BANK'S WORLD / FEBRUARY 1992 Jagannathan Murli John Nellis Harbaksh S. Sethi Jayant S. Tata Indian American Indian American Chief Administrative Lead Management Regional Procurement Divisional Manager, Officer, Middle East and Specialist, Public Sector Adviser, Europe and International Securities North Africa Regional Management and Private Central Asia Region, Division, IFC's Capital Office, effective March 1. Sector Development effective April 1. Markets Department, Division, Country effective January 1. Economics Department, Development Economics Vice Presidency, effective January 1. New Staff Members Alexandre V. Abrantes Rumman Ahmad Faruqi Cecil Mallon Laura Raimondo Portugal Pakistan Ireland Italy Public Health Spec./LA1/1/6 Sr. Policy Analyst/MIGA/1/13 Sr. Auditor/IAD/1/13 Economist/MN1/1/21 Dennis Bailey Catalina C. Gomez Manuel G. Marino Christian A. Rey United States Colombia Spain France SecretaryIIFC/ 1/6 B/L Secretary /LAT /1/6 Pollution Ctr!. Spec./LAT /1/6 Operations Ofcr./ AF3/1/6 Nourredine Bouzaher D. Havlicek James F. Martin Simon A.P. Rietbergen Algeria Germany Canada Netherlands Energy Econ./AF3/1 /2 Transport Econ./EA 1/1 /2 Investment Ofcr./IFC/1/21 Forestry Spec. / AFT /1/6 Veit Burger Georges Heinen Edith McFadden J ames Rourke Austria Luxembourg United States Ireland Agric. Econ./EDI/1/6 ED's Asst./EDS/1/13 Secretary/POP /1/21 Library TechnicianlIFC/1 /2 Lisa Burke Bert Hofman Monica Migliassi Paramit S. Sachdeva United Kingdom Netherlands Chile India File ClerkIIFC/1/2 Young Professional/YPP /1 /2 Secretary / AF5 / 1 /16 Projects Ofcr./ AF2/12/30 Robin C. Carruthers Clare B. Hogg Ruth A. Mulahi Yolanda Sasis Argentina United Kingdom Kenya Philippines Transport Econ./LA2/1/6 Secretary / AFR/1 /21 SecretaryIIFC/ 1/21 Secretary/IFC/ 1/2 Valerie Charles Takao Ikegami Otilia Nadora Diane Segovia Grenada Japan Philippines United States Secretary / EA2 /1/21 Sanitary Engr./ECI/ 1/ 15 Secretary /PHR/12/30 SecretaryIIFC/ 1/6 Fabrizio Costa Abdelghani Inai Maria M. Neves Yordanka Tzvetkova Italy Algeria Portugal Bulgaria ED's Asst./EDS/1/13 Highway Engr./AF5/1/6 B/L Secretary /PAD/1 /13 ED's Asst./EDS/1/2 Tekola Dejene Jeni Klugman Alicia Owen HyunHeeUm Ethiopia United States Philippines Korea Sr. Economist/AFT/1 /2 Young professional/YPP /1/2 SecretaryIINS/1 /2 Sr. Auditor/IAD/1/2 Charles Dileva Jacob Koister Reynaldo Pastor United States Denmark Peru Counsel/LEG/1/13 Economist/ AF1/12/30 Counsel/LEG/1/2 Alfred M. Duda Antonella Lazzeri Bernard H. Portier United States Italy France Sr. Water Res. Spec./ENV /1/6 ED's Asst./EDS/1/13 EngineerIIFC / 1/2 THE BANK'S WORLD / FEBRUARY 1992 19 The purpose of this column is to answer new All-in-1 subscribers. When the All­ year, so staff might benefit from these in-1 User's Guide is updated, only new unique items? Could they be used as questions of broad interest concerning the and replacement pages (without a raffle prizes for the United Way bene­ World Bank Group's policies and proce­ binder) should be distributed to cur­ fits or McNamara scholarship efforts? dures. Please include your name and room rent holders of the All-in-1 User's number so we can send you the answer to Guide. The fact that you have more Answer: As reflected in Staff Rule your question, even if it is not selected to than one binder obviously shows some 3.01, the acceptance of gifts by staff is appear in the magazine. Your confidential­ problem with our internal procedures. strongly discouraged, except where re­ ity will be protected and your name will We would urge you, and anyone else fusal would greatly embarrass the not be submitted to the manager from who has received multiple copies, to re­ donor. The Bank disposes of these whom an answer is sought. An anonymous turn them to Vicky Sareen in Rm. items through a commercial auction fa­ question can be answered only if it is of suf­ H-3159, for distribution to other staff. cility to obtain the best possible prices, ficiently broad interest to be included in the This same policy applies to IBM User's thus ensuring maximum benefit for the magazine. Send your questions to: Answer­ Guides as well. Only new users of the recipient charities. If surrendered gifts IBM system get binders when they are were to be auctioned on Bank prem­ Line, The Bank's World, Rm. T-8044. available. ises, undoubtedly sale prices would be * * * On the question of a Unisys User's lower, thus providing an advantage to Note: Questions about the rehabilitation of Guide, at one time such a guide was staff. However, this would be contrary the Main Complex should be sent to published. However, the guide was re­ to the Bank's position that staff should AnswerLine as well. placed with the "Burroughs Facility not benefit from the receipt of gifts. Center Technical Notes." (Burroughs Gifts surrendered to the Bank are * * * was the predecessor to Unisys) and, sent for auction to Adam A. Weschler Question: Walking through the several years ago, these Technical and Sons, the commercial auction ground floor passage from the A to 0 Notes were updated and redistributed house nearest Bank premises (909 E building, I noticed a stack of new All­ as "ITCT1 Unisys Technical Notes." Street, N.W.). Auctions are announced in-1 binders presumably waiting to be Last calendar year, ITF discussed in the Weekly Bulletin to allow inter­ distributed. As I look at the previous with the Unisys Advisory Group the ested staff to participate along with the binders piling up in my office (I al­ need for an updated Unisys Guide. public. Weschlers is easily reached by ready have three), I cannot help but This discussion was based on an inter­ subway as it is a short walk from Fed­ wonder: has any thought ever been nal audit completed earlier. ITF and the eral Triangle or Gallery Place stations, given to just distributing the contents, Advisory Group decided that, given as well as Metro Center. If a staff mem­ allowing users to reuse their existing the expected short life of the Unisys ber is strongly interested in a particular binders? It seems silly to be dumping system, an investment in preparing a item, he or she may check with the so many new binders into the com­ User's Guide was not warranted. If Chief of Material Services to learn plex every time. I am quite happy to you believe this decision should be when the item will be auctioned, and request binders as I need them revisited, you might wish to discuss may want to schedule a half day's an­ through the normal office supplies the issue with your representative on nualleave in order to attend. process. Perhaps, since the same pol­ the Unisys Advisory Group. Wayne From time to time, gifts are also dis­ icy seems to apply to new issues of Rayfield, Head, Computing Technology posed of within the Bank to aid charita­ the IBM Facility Center User's Guide, Center, ITF ble causes. For example, permission the question of policy on this matter was given for a regional office to auc­ should be asked of ITF generally. tion gifts received by its director as part While on the subject of the IBM Fa­ Question: Gifts presented to Bank of its campaign to support the United cility Center User's Guide, why has a staff and surrendered in accordance Way. Surrendered gifts have also been Unisys User's Guide never been is­ with Staff Rule 3.01 are always auc­ donated to the WBVS Annual Interna­ sued? There are still a lot of users of tioned off at a site far from the Bank. tional Arts and Crafts fair, the proceeds the Unisys mainframe who would Although the proceeds are donated to of which benefit the Margaret doubtless benefit from the equivalent charity, the chief beneficiaries seem to McNamara Memorial Scholarship material in a single, easy-to-use refer­ be art, antique-and other retail dealers Fund. ence. in the area who purchase the items­ Questions should be submitted to since most staff can't get to the auc­ Mark Binning, Chief, Material Services Answer: Thank you for bringing this tion house during a lunch hour. Section, Material Management Divi­ issue to our attention. It is actually our Would it be possible to hold the auc­ sion, GSD. Michael Walden, Chief, Mate­ practice to issue new binders only to tion on premises, say, every other rial Management Division, GSD