- ---world ,D t rr ---bank annual report 1977 I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -f r N- The World Bank The World Bank is a group of three that would bear less heavily on the balance of institutions, the International Bank for payments of the borrowing countries. Though Reconstruction and Development (IBRD), the legally and financially distinct from the Bank, International Development Association (IDA), IDA is administered by the same staff. IDA's and the International Finance Corporation assistance is concentrated on countries which (IFC). are very poor-mainly those with an annual per The common objective of these institutions is capita gross national product of less than $520 to help raise standards of living in developing (1975 dollars). More than 50 countries are countries by channeling financial resources eligible under this criterion. from developed countries to the developing world. While the Bank has traditionally financed all The Bank was established in December 1945, kinds of infrastructure facilities such as roads, and makes loans at a rate which is calculated in railways, and power facilities, its present accordance with a formula related to its cost of developmental strategy places a greatly borrowing. The Bank's charter spells out certain increased emphasis on investments which can basic rules which govern its operations. It must directly affect the well-being of the masses of lend only for productive purposes, and pay due poor people of developing countries by making regard to the prospects for repayment. Each loan them more productive and by including them as is made to a government or must be guaranteed active participants in the development process. by the government concerned. The use of This strategy is increasingly evident in the rural loans cannot be restricted to purchases in any development, agriculture, and education particular member country. And the Bank's projects which the Bank and IDA help finance. decisions to lend must be based only on The same strategy is also being carried out for economic considerations. the benefit of the urban poor in projects The International Development Association designed to develop water and sewerage was established in 1960 to provide assistance for facilities as well as "core" low-cost housing, and the same purposes as the Bank, but on terms to increase the productivity of small industries. Front Cover: As a first phase of a program to strengthen rural economic activities throughout most of Upper Volta, a $2.2 million IDA credit, Frontispiece: A geothermal power station at approved in 1972, for a Rural Development Fund Ahuachapan in El Salvador, the second of its kind provides financing for a balanced development of assisted by World Bank financing. The $27.3 million food and cash crops (such as sorghum pictured loan, made in fiscal 1973, also helped finance the in the photograph), infrastructure, and health construction of a large hydroelectric plant for which and education components. The program will the Inter-American Development Bank was the ultimately benefit about 450,000 rural people. principal lender. Table of Contents The Record for Ten Years-1968-77 4 Summary and Background of the Year's Activities 5 The Year's Activities, by Region Eastern Africa 30 Western Africa 36 East Asia and Pacific 41 South Asia 46 Europe, Middle East, and North Africa 50 Latin America and the Caribbean 56 Projects Approved for Bank and IDA Assistance in Fiscal 1977, by Sector 61 Technical Assistance Technical Assistance 79 Economic Development Institute 79 Other Activities Aid Coordination 81 Interagency Cooperation 81 International Agricultural Research 83 Economic Research and Studies 84 Operations Evaluation 86 Internal Auditing 86 International Centre for Settlement of Investment Disputes 87 Bank and IDA Membership 87 Borrowings and Finance Income and Expenditure: Bank 88 Other Financial Operations: Bank 89 The Bank's Borrowings-Fiscal 1977 89 Borrowing Costs: Bank 90 Capitalization 90 Finances: IDA 92 Foreign and International Bond Markets-Calendar 1976 93 Executive Directors Executive Directors 99 Joint Audit Committee 100 Statistical Annex 101 Bank Appendices 123 IDA Appendices 143 Bank/IDA Appendices 159 The Executive Directors and Alternates Executive Directors Alternates Jacques de Groote Gerald S. Aburn Earl G. Drake Edward M. Agostini Said E. El-Naggar Saleh A. Al-Hegelan Ernesto Franco-Holguin Valgeir Arsaelsson Edward R. Fried Tung Bilget Julio C. Gutierrez German Calvillo Hans Janssen Eduardo R. Conesa R. A. Johnston Ronald F. R. Deare Yahia Khelif Kwaku Gyasi-Twum Thavil Khutrakul Hans Dieter Hanfland Anthony IJ. A. Looijen Md. Matiul Islam Einar Magnussen Fumiya Iwasaki Susumu Murayama Stanislas Y. Kpognon Eduardo Pesqueira A. H. Madinga Armand Razafindrabe Ramon Martinez Aponte Giorgio Rota Eduardo A. McCullough William S. Ryrie Gavra D. Popovic S. R. Sen Bharat B. Pradhan Timothy T. Thahane Hal F. Reynolds Jacques Henri Wahl Rene-Paul Rigaud The Executive Directors of the International Bank for Reconstruction and Development and the International Development Association have had prepared this Annual Report for the fiscal year July 1, 1976 to June 30, 1977, in accordance with the By-Laws of the two organizations. Robert S. McNamara, President of the Bank and the Association and Chairman of the Boards of Executive Directors, has submitted this Report, together with accompanying administrative budgets and audited financial statements, to the Boards of Governors. The Annual Reports of the International Finance Corporation and the International Centre for Settlement of Investment Disputes are published separately. June 30, 1977 2 IV> The Record for Ten Years-1968-77 Amounts in US$ millions Fiscal Year 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 World Bank Operations Approved 44 82 69 78 72 73 105 122 141 161 Loan Amounts(' 847 1,399 1,580 1,921 1,966 2,051 3,218 4,320 4,977 5,759 Countries 31 44 39 42 40 42 49 51 51 54 Disbursements(2) 772 762 754 915 1,182 1,180 1,533 1,995 2,470 2,636 Total Income 356 410 504 578 646 758 929 1,157 1,330 1,617 Net Income 169 171 213 212 183 186 216 275 220 209 Total Reserves 1,160 1,254 1,329 1,444 1,597 1,750 1,772 1,902 1,916 2,026 Borrowings: Total 735 1,224 735 1,368 1,744 1,723 1,853 3,510 3,811 4,721 Borrowings: Net 222 698 299 819 1,136 955 990 2,483 2,530 3,258 Subscribed Capital 22,942 23,036 23,159 23,871 26,607 30,397 30,431 30,821 30,861 30,869 Member Countries 107 110 113 116 117 122 124 125 127 129 Professional Staff 767 961 1,170 1,348 1,516 1,654 1,752 1,883 2,066 2,203 IDA Operations Approved(3) 16 29 50 51 68 75 69 68 73 67 Credit Amounts 107 385 606 584 1,000 1,357 1,095 1,576 1,655 1,308 Countries 14 28 33 34 38 43 41 39 39 36 Disbursements 319 256 143 235 261 493 711 1,026 1,252 1,298 Usable Resources, cumulative 1,807 2,176 3,182 3,343 4,204 7,019 7,433 11,608 11,514 11,789 Member Countries 98 102 105 107 108 112 113 114 116 117 Excludes loans to IFC of $100 million in FY1967, $100 million in FY1970. $60 million in FY1972, $40 million in FY1973, $1.10 million in FY1974, $50 rillion in FY1975, $70 million in FY1976, and $20 million in FY1977. Includes amounts in FY1976 and FY1977 lent on Third Window terms. '2) Excludes disbursements on loans to IFC. J, Joint Bank/lDA operations are counted only once as Bank operations. 4 Summary and Background of the Year's Activities In fiscal 1977, the World Bank, together with penditures: Bank" in the chapter, "Borrowings its affiliates, the International Development As- and Finance" of the Annual Report.) sociation (IDA) and the International Finance Borrowings by the Bank, at $4,721 million, Corporation (IFC), made lending and invest- established a new high for the fourth consecu- ment commitments totaling $7,273.5 million. tive year, ) Bank disbursements for fiscal 1977 This was an increase of some $396.1 million were at record levels - $2,636 million,t4) or over fiscal 1976. $166 million above fiscal 1976. IDA disburse- The Bank made 161 loans amounting to ments, too, reached a new high, $1,298 million, $5,759 million to 54 countries. In nominal terms, up $41 million over the previous year. the commitment figure represents an increase of In fiscal 1977, as in the two previous years, the $782 million over fiscal 1976. sector receiving the most Bank and IDA assist- IDA's commitments totaled $1,308 million. ance was agriculture and rural development. It The 67 projects for which IDA approved assist- accounted for 33% of Bank and IDA commit- ance during the year were in 36 countries. Ap- ments for the year. Some 84 projects, for a total proximately 87% of the commitments were in lending volume of $2,308 million, were ap- countries with annual per capita incomes of less proved in the sector. Estimates indicate that a than $265.'1) In fiscal 1976, 92% of IDA com- total of 5 million families, or about 30 million mitments were to this group of tithe poorest people. will directly benefit from these projects. countries." IDA commitments in fiscal 1977 The 84 projects represented 37% of total Bank dropped $347.8 million from the previous year. and IDA operations. Lending in what are known By June 30, 1977, IDA had committed prac- as the "traditional" sectors-power. transporta- tically all the funds available to it for the Fourth tion. and telecommunications -amounted to Replenishment period. Mainly because of ex- $2,139 million, or 30% of aggregate lending, change rate changes, the total available was sub- and 23% of total operations. In fiscal 1976, stantially less in US dollar terms than it had been lending to these sectors totaled $2,384 million, when the Fourth Replenishment agreement was or 36% of total lending. negotiated in Nairobi in September 1973. Thus, The Bank also expanded its technical as- instead of the $4,501 million originally visual- sistance activities in the year. In fiscal 1977, 162 ized, the amount actually available for the three- lending operations included specific provision year period, fiscal 1975-77, was only $4,151 for technical assistance for a total of $189 mil- million. lion, as compared with S218 million and 152 Continued inflation either moderated effects operations in fiscal 1976. The Bank's Economic of commitment increases in real terms or aggra- Development Institute (EDI) increased its spon- vated declines during the fiscal year.t2) If 1977 sorship or support of overseas courses by four Bank and IDA commitments were to be ex- (from 20 to 24). (For additional information on pressed in terms of 1976 dollars, they would be technical assistance and the EDI. see the chap- $6,586 million, or 0.7% lower in real terms. ter, 'Technical Assistance," elsewhere in this For the Bank alone, growth in lending in fiscal Report.) Co-financing of Bank-approved and 1977 in real terms amounted to $391 million, IDA-approved projects also expanded during the or 7.8% over fiscal 1976. For IDA, lending de- year. In fiscal 1977. 69 projects were co-financed greased in real terms in fiscal 1977 by $437 million, or 26.4% below fiscal 1976 amounts. Net income of the Bank in fiscal 1977 amounted to $209 million, down $1 1 million, or (') In 1975 dollars. 5 %, from the previous year's figure. Gross reve- (2) Since the real value of loan commitments by the Bank and IDA is eroded to the extent that cost inflation occurs over nues, on the other hand, increased $287 million the period of disbursements, it is the practice of the Bank to $1,617 million, a new record. The decrease in to make allowance for escalation at the time of comrnit- ment. The deflator now used by the Bank to express lend- net income was due largely to a steep rise of ing in real terms is a weighted average of the price levels assumed to be prevailing oser the period of the execution $298 million in expenditures, most of which was of the project. caused by a $279 million increase in interest and 10) A $600 million offering of bonds and notes, made in April 1977, has been credited to the Bank's borrowing program issuance costs on the Bank's borrowings. (For for fiscal 1978. further details, see the section, "Income and Ex- 011 Figures exclude disbursements on loans to IFC. 5 assistance through price increases of goods and Note on dollar amounts services bought through official aid had declined Dollar amounts used in the text of this Re- in recent years. These factors, combined with port for capital of the Bank refer to United other considerations, led to the agreement by the States dollars of the weight and fineness in "traditional" donors that a substantial increase effect on July 1, 1944, while those used for in IDA resources-compared with the level they subscriptions and contributions to IDA, with had contributed to the Fourth Replenishment- the exception of the Fourth and Fifth Re- was in order. The total amount agreed to by plenishments, refer to United States dollars of these donors was $7,200 million. That amount, the weight and fineness in effect on January together with a special contribution from Kuwait 1, 1960. For all practical purposes, these are and with contributions from the Republic of the same. Unless otherwise specified, all other Korea, Saudi Arabia, and the United Arab amounts in US dollars refer to current dollars. Emirates brought the Fifth Replenishment total One dollar as used for Bank capital and IDA subscriptions and contributions equaled ap- to the $7,638 million mark. proximately 1.20635 current dollars, as of It became clear during the negotiations, how- June 30, 1977. For more detailed discussion, ever, that the Fifth Replenishment could not see Summary of Significant Accounting and become effective until after fiscal 1978 had Related Policies and Notes to Financial State- begun. Most contributors, therefore, expressed ments included in Appendix G for the Bank their willingness to provide commitment author- and in Appendix F for IDA. ity to IDA by making funds available in advance of the Fifth Replenishment becoming effective, but only on the condition that (a) there be a collective undertaking to do so involving the in the amount of $2,110 million. (For more on participation of most donors and (b) the "bridg- co-financing, see the section "Aid Coordination" ing" arrangement would become operative only in the "Other Activities" chapter.) when governments had given the Association formal notification that such contributions in an amount equivalent to $1,200 million had been The IFC-its essential function is to assist the made. economic development of its less developed member countries by promoting the growth of Increase in Capital; the Bank's Future Role the private sector of their economies - made loan and equity investments totaling $258.9 mil- The Bank's Articles of Agreement state that lion in 34 enterprises in 20 countries in fiscal its outstanding loans cannot exceed 100% of 1977, of which $206.7 million has already been subscribed capital and reserves. At June 30, committed to 33 enterprises. The comparable 1976, that percentage was only 41 %. Because, figure of approved investments in fiscal 1976 was in time, disbursements must eventually catch up $235.8 million in 33 enterprises. A separate with previous commitments, this ratio was pro- Annual Report, detailing IFC's operations for jected to increase rapidly in subsequent years the year, is published by the Corporation. even if the Bank were not to increase new loan commitments from the level achieved in fiscal IDA: The Fifth Replenishment 1976. Given the long lead times required in obtaining legislative approval for a capital in- After more than a year of discussions, repre- crease, it was decided to initiate action well be- sentatives of 26 donor countries agreed, in fore the Bank's loans would actually reach the March 1977, to arrangements-subject to legis- legal limit. lative approval in the states concerned-to in- In May 1976, the Executive Directors of the crease IDA's resources in a Fifth Replenishment Bank transmitted to the Board of Governors, of its funds. for a vote, two resolutions concerning the Bank's The replenishment level provides for total capitalization. One provided that the Bank's commitments of $7,638 million for the three- authorized capital be increased by $8,444 mil- year period beginning July 1, 1977. This amount lion (in current dollars) to $41,016 million; the represents an increase of $3,487 million in nom- other authorized an allotment to 125 members of inal terms, or 84 % , over the funds available in up to $8,340 million of selective increases in the Fourth Replenishment, which totaled $4,151 subscriptions to capital stock. (The remaining million after adjustments for exchange rate S104 million would be added to unsubscribed changes and the defeat by Swiss voters in a capital available to accommodate new members' referendum in June 1976 on a Government pro- subscriptions and for future increases in sub- posal to lend IDA some $66.2 million equivalent. scribed capital.) The increase was called "selec- The representatives of the member countries tive" in that allotments are made to those in- who contributed to the Fourth Replenishment dividual members which accepted increases in recognized that the needs of the poorest coun- their quotas in the International Monetary Fund tries for external assistance on concessionary (IMF). It is a long-standing policy of the Bank terms had grown since the Fourth Replenish- that when increases in IMF quotas are accepted, ment, and that the purchasing power of such members are also expected to request increases 6 IDA: Proposed Contributionsl' Under Fifth Replenishment Agreement Percent of total Contributor In national currencies US$ (equivalent) (2) proposed contribution Australia $A 133,764,342 146,900,000 1.92 Austria S 844,278,750 49,700,000 .65 Belgium BF 4,582,009,250 124,600,000 1.63 Canada Can$ 470,787,690 447,900,000 5.86 Denmark DKr 515,166,500 87,800,000 1.15 Finland Fmk 156,169,000 41,000,000 .54 France F 2,063,400,250 413,300,000 5.41 Germany, Federal Rep. of DM 2,006,912,880 838,800,000 10.98 Iceland IKr 421,190,000 2,200,000 .03 Ireland £Ir 5,819,705 9,999,999 .13 Italy Lit 262,307,952,500 295,900,000 3.87 Japan-Ordinary Contribution Y 182,833,200,000 648,000,000 8.48 -Extra Contribution Y 40,629,600,000 144,000,000 1.89 Korea, Republic of"'> W 484,000,000 1,000,000 .01 Kuwait-Ordinary Contribution KD 12,668,223 43,900,000 .58 -Extra Contribution KD 45,045,777 156,100,000 2.04 Luxembourg LuxF 132,385,500 3,600,000 .05 Netherlands f. 540,774,850 216,700,000 2.84 New Zealand $NZ 8,000,000 7,646,400 .10 Norway NKr 423,714,200 80,600,000 1.06 Saudi Arabia"'9 SRls 882,500,000 250,000,000 3.27 South Africa R 8,695,652 10,000,000 .13 Spain"3' Ptas 1,444,464,000 21,000,000 .28 Sweden SKr 1,239,101,500 293,800,000 3.85 United Arab Emirates"4) Dh 200,000,000 50,754,980 .66 United Kingdom £ 474,771,577 815,800,000 10.68 United States $ 2,400,000,000 2,400,000,000 31.42 Yugoslavia(') Din 148,994,640 8,100,000 .11 Unallocated 28,753,601 .38 Total .. . . . . . . . . . . . 7,637,854,980 100.00 (1) As of June 30, 1977. (2) At IMF representative exchange rates of March 14, 1977. (3) Part II member. Part II members are developing countries. Of their subscriptions to IDA, only 10% is in convertible funds. The remainder is paid in the members' own currency and may not be used by IDA without consent. (4) United Arab Emirates is not yet a member of IDA, but has stated that it is considering whether to apply for membership. Note: Details may not add to total because of rounding. in their subscriptions to the capital of the Bank. 1978 at $6,100 million. Second, the Executive A resolution to increase IMF quotas was ap- Directors agreed that they would make their best proved in March 1976. efforts to reach an agreement by June 30, 1978 These resolutions were formally approved by for concluding their negotiations regarding a the Board of Governors in May 1977. If the General Capital Increase. %elective increases in subscriptions were made, Further discussions among Board members on the Bank would be able to sustain a level of the matter of a General Capital Increase will be lending of about $5,800 million for the indefinite held during fiscal 1978. Several shareholders of future. However, if the Bank is to continue to the Bank - the institution's member govern- increase its commitments in real terms, addi- ments-have already made reference to the tional capital in the form of a General Capital Bank's future in different fora. Increase, over and above that provided by the Requests for increases in the Bank's resources Selective Increase, would be needed. to permit lending to rise in real terms were made During discussions among the Executive Di- by the heads of seven industrialized states and rectors in fiscal 1976 on the Selective Increase in the Chairman of the Council and the President capitalization, it was acknowledged that further of the Commission of the European Commu- talks would be necessary on a General Capital nities, who met in London in May 1977 to dis- Increase. cuss issues of economic importance; in June From discussions held in fiscal 1977, two 1977, by the 27 member states from both the decisions were reached. First, it was agreed that developed and developing world, participating the Bank would set its level of lending for fiscal in the Conference on International Economic 7 Cooperation in Paris; and by the 33 countries ing; and a discussion of the progress made and represented at the Commonwealth meeting in lessons learned from the Bank's experience in London in June. rural development. The Board also adopted a Discussions during fiscal 197 8 within the Bank strategy for Bank action to promote employment on the matter of a General Capital Increase will through the development of small-scale en- initially concentrate on the future role of the terprises. Bank and on the range of financial options which may be needed to support that role. Poplation Polic The discussions will be set against the back- pu oly ground of significant changes in the size, regional The Bank's experience in lending for popula- distribution, sectoral composition, and character tion projects is now more than six years old. of the Bank's operations-changes which reflect Over a somewhat longer period, it has tried to recent thinking within the international com- make population objectives a more central part munity on development priorities. of its development strategy. Though rapid re- Changes in the regional distribution and sec- sults were hardly to be expected with the Bank's toral composition do not reveal fully the re- entry into this sector, the Bank has become in- orientation which has taken place to make the creasingly concerned whether the pace and di- Bank's operations more responsive to the devel- rection of its activities were entirely adequate. opment objectives of member countries. This In fiscal 1976, a distinguished five-member panel can be illustrated at the level of general develop- of external experts, chaired by Bernard Berelson, ment strategy as well as specific project design. President Emeritus of The Population Council, Notably, the Bank has found that the benefits of was appointed to examine all aspects of the growth cannot be assumed to "trickle down" Bank's population work and to advise what addi- automatically; to ensure that development bene- tional actions the Bank might take to maximize fits the poorest, it must deliberately be directed its efforts. The panel's report was submitted in to the poorest. The focus now, therefore, is August 1976. increasingly on identifying the poorest sections The panel found grounds for cautious opti- of society and on improving their productivity mism with respect to what it calls an historic and income levels directly. In designing specific movement of great consequence, namely, that projects, these concerns have led the Bank not fertility may have started to decline generally only into new sectors of lending, but also into a throughout the developing world. Because it is reorientation of projects in "traditional" sectors. easier for governments to strengthen and assist These "new style" projects are subjected to the fertility declines that have already started than it same rigorous tests of financial and economic is to get them started in the first place, evidence soundness, however, and rates of return esti- of widespread fertility reduction provides hope mates show them to be no less high than projects that government intervention can become in- approved by the Bank in the past. Financing for creasingly effective in this field. industrial development is shifting toward small- It was less easy to speak with confidence as to scale enterprises. Infrastructure projects fre- what specific interventions can be most effective quently include rural feeder roads, or electricity, in a given situation, the report added. The prob- or water supply for poor urban communities. lem of identifying specific actions that govern- More generally, there is an increasing tendency ments might take is especially acute in rural- for loans and credits to incorporate subcom- dominated, low-income societies, where the so- ponents from other sectors, sometimes experi- cial setting favors high fertility. mental and modest in size, so that new tech- Perhaps the most effective action a govern- niques can be tried and the benefits of a multi- ment can take, the panel reported, is to mount a sectoral approach tested. It is also true that lend- successful development program that will raise ing for "traditional" projects remains an impor- living standards generally. A practical problem, tant factor in Bank operations. Depending on however, is to identify, within general develop- country circumstances, these projects are often ment efforts, those specific policies and programs those which best respond to the needs of many which appear to have a critical influence on the Bank borrowers. number of children that families want. In this It is against this background that the future area, the panel referred to a number of critical role of the Bank-the challenge and the promise variables that influence fertility-lower mortal- ahead-will be examined. ity, especially infant mortality, improved educa- In fiscal 1977, the Executive Directors devoted tion, employment, and status of women, as well attention to several matters of policy which will as an increase in social equity through better affect the direction of Bank lending in the future. income distribution. These matters included a review-now, an an- Among its recommendations to the Bank, two nual examination-of the direction and focus of were overriding. First, the Bank should give the Bank research program; a review of opera- much more attention to influencing fertility de- tions in the population sector through a discus- mand than it has in the past. This attention sion of the report of the External Advisory Panel could be provided in two ways: by making gov- on Population (the so-called "Berelson Report"); ernments more aware of the penalties they pay a policy review of nonproject or program lend- for higher fertility, and by paying more atten- 8 Selected New Aspects of Project Work Innovation Year of introduction Explanation Agricultural research In fiscal 1974, 18 out of 51 agriculture projects had research components; (late 1960s) in fiscal 1976, 33 out of 64. Sensitivity and risk The sensitivity of the rate of return to different assumptions about uncertain analysis (late 1960s) costs and benefits is regularly examined. Project-related training Between fiscal 1972 and fiscal 1976, the number of projects with a training (1970) component more than doubled; the amount of Bank financing for this pur- pose more than quadrupled. Environment (1970) Every project is now routinely examined for its environmental implications (including health), and any protective measures, identified as necessary, are incorporated into its design and execution. Income distribution Distribution of benefits and the impact of the project on different income (early 1970s) groups are examined and taken into account wherever possible. Cost recovery (early 1970s) Increasing attention is given to cost recovery arrangements, which balance the needs for efficient use of services provided against financial, fiscal, and income distribution considerations. Development of local Increased efforts in this area have been under way for some years, in par- contractors, consultants, ticular, to provide technical and limited financial assistance to develop local and other local contracting industries through projects. capabilities (early 1970s) Technology transfers and The range of options, the standards, the low-cost solutions appropriate to appropriate technology developing countries, and especially to the poverty target groups, are being (early 1970s) more critically examined and given more attention in project design. Employment generation Increasing attention is being given to designing projects to have a positive (early 1970s) impact on employment, for example, through labor-intensive construction methods and the encouragement of small-scale enterprises. Sector context (early 1970s) Project selection and design have been increasingly based on a broad analysis of sector problems and priorities. Monitoring and evaluation Built-in monitoring and evaluation of their progress and impact have (since 1972) gradually become a regular feature of most projects. Use of remote sensing (1973) These techniques were applied to project and sector work in 11 countries in fiscal 1977. Utility tariff structure The Bank has always been concerned with the financial adequacy of utility and policy (water-1972, tariffs, but has only recently focused on tariff structure and its impact on power-1974) income distribution. Review of the equity and economic aspects of tariff structure and policy is now an element of virtually every power and water project. Sociological and This element is critical in many newer-style projects and is beginning to be anthropological aspects introduced as a regular part of project work. (since 1973) Health (1975) In the first 18 months after introduction of health components, staff pro- vided advice on 122 projects and provided direct operational support to 33 of these. Nutrition and population In addition to projects in these sectors, increasing attention is being given components (1976) to including nutrition and population components in projects in other sec- tors, particularly rural and urban development. Social rate of return (1976) Return calculations taking into account the distributional impact of proj- ects are still in the experimental stage. Role of women in A new advisory position was created and filled in 1977. Involvement of development (1976) women is now being explicitly considered in projects, especially in educa- tion and rural development. Small-scale enterprises Lending to development finance companies and industrial estates is increas- (1976) ingly oriented toward small-scale enterprises which generate employment. Urban poverty orientation Traditional water and power projects in urban areas are being redesigned in non-sites and services to incorporate distribution elements to service poorest segments of the projects (1976) community. tion-through project design, research, and the to its resources, either through the expansion composition of its lending program-to factors of old facilities or the creation of new ones, for that influence fertility demand at the family level. balance of payments financing. The second overriding message was that the The Bank has tried to maintain flexibility in Bank should do more to exploit the comparative its approach towards program lending, as the advantage inherent in its work in the general "special circumstances" mentioned in the Arti- development field. The accomplishment of this cles of Agreement cannot always be foreseen. objective could best be carried out through the When the question was reviewed in 1971, it was wide diffusion of concern for population prob- agreed in principle, subject to specific demon- lems throughout Bank activities and hence stration in each case when a program loan is throughout its staff, the panel reported. recommended, that special circumstances may The panel also recommended that senior arise when: Bank management speak out more frequently on -A borrowing country has an acceptable population issues, that there be more systematic medium-term or long-term development pro- treatment of population in the Bank's economic gram, with supporting economic and financial work and in its country program analyses, and policies, which is judged to provide a satisfac- that population components be included in many tory basis for external assistance in a given of the Bank's social sector projects. The panel amount. also urged the Bank to continue its project lend- -The needed transfer of resources from ex- ing as the principal means by which it helps gov- ternal lending in support of the development ernments extend their family planning services. program cannot be achieved effectively and ex- The report has already had a significant im- peditiously by the financing of investment proj- pact on Bank thinking and activity. ects, including justifiable local currency expend- -In April, 1977, the President of the Bank itures in connection therewith. made a major address on ways to further acceler- During their latest review of program lend- ate current rates of fertility reduction so as to ing, conducted in April 1977, the Executive reach a net reproduction rate of 1.0-replace- Directors considered four types of "special cir- ment-level fertility-some 20 years in advance cumstances" for such lending: (a) reconstruction of current predictions. or rehabilitation of the economy after war or -The Population Projects Department has severe national calamity, where an expeditious prepared a new lending program designed to transfer of external resources is needed to re- increase the number of population projects store the process of normal development activ- brought to the Executive Directors for consid- ity; (b) the need to supply industrial raw mate- eration. rials or equipment to raise the use of existing -A program has been launched to include industrial capacity; (c) a sudden fall in export population components in selected urban, rural earnings, where the economy is critically de- development, and education projects, and family pendent on a single export item; and (d) a sharp planning activities in health components. deterioration in the terms of trade as a result of -A new internal research program is under a rapid rise in import prices. preparation. In addition, the Bank has joined From fiscal 1947 through fiscal 1970, the other donor agencies in support of the Interna- Bank and IDA made 26 program loans, amount- tional Review Group on Social Science Research ing to $1,708 million in commitments, and ac- in Population and Development, which will rec- counting for about 10% of total Bank and IDA ommend priority areas for future research. commitments for the period. During the period -Efforts are being made to improve the fiscal 1971-76, 23 program loans were approved coverage of population matters in the Bank's for a total of $1,695 million. The proportion of economic work and to ensure that the various program lending to Bank and IDA commitments social sectors that help to influence fertility de- was in the range of 4% to 7% up to fiscal 1974; cline are taken into consideration in its country it increased to nearly 9% in fiscal 1975, but programming. declined to 6% in fiscal 1976. During the past year, only four program loans, totaling $165 Program Lending million, and accounting for but 2.3% of total Bank and IDA lending, were approved. The Bank has sought to clarify and review its The rise in program lending in fiscal 1975 was policy on program lending from time to time, due to those "special circumstances" which arose since the Articles of Agreement state that "loans for the Bank's borrowing countries as a result of made or guaranteed by the Bank shall, except in the events of 1974-75. Since then, however, special circumstances, be for the purpose of spe- other sources of finance have become more cific projects of reconstruction or development." readily available to countries facing temporary In fiscal 1977, the policy on program lending economic difficulties. was again reviewed. The need for a clarification In response to the economic upheavals of re- of policy-the first since 1971-was mainly cre- cent years, the IMF has established the enlarged ated by the general movement in recent years of Compensatory Financing Facility, the Extended the International Monetary Fund (IMF) in the Fund Facility, and the Trust Fund; these are direction of increasing the access of its members additional sources of finance for countries fac- 10 ing balance of payments problems. There are the paper entitled Rural Development, many important differences, however, between the lessons have been learned about that crucial but Bank's program lending and the operations of difficult sector of development. These lessons the IMF facilities. The basic distinction is their derive from the 128 rural development projects time horizon. The IMF essentially provides ad- assisted with Bank finance during the fiscal ditional foreign exchange resources to meet 1975-77 period and from the more than 400 short-term balance of payments crises, while the agriculture and rural development projects cur- Bank provides long-term development assistance rently being implemented in the field, some 200 in support of structural adjustments in develop- of which are rural development projects. ment programs. The roles of the Bank and the Two conclusions stand out. First, it is possible 'IMF are, therefore, basically complementary. to design projects that will assist large numbers Following the latest policy review of program of the rural poor to expand production and in- lending, it was generally agreed that: crease their incomes. But, second, rural devel- 1. With the expansion of IMF facilities, the opment is no easy task. need to coordinate action on program loan re- Rural development projects which the Bank quests with the IMF has increased considerably. has helped to shape incorporate four elements. It may often be useful to arrange a mutually First, they are designed so that large numbers supportive Bank-Fund policy package which of low-income producers are reached. Second, would help alleviate short-term or medium-term they are financially viable and are able to raise balance of payments problems within the con- the incomes of the rural poor substantially. text of a long-term development strategy best Third, they are relatively low cost and, there- suited to the country. fore, are replicable within the limited budgets 2. The improved availability of compensatory of developing countries. Fourth, they are com- financing from the Fund with relatively few prehensive in scope, where it is clear that the conditions should enable countries with short- nonagricultural components (improved health, term payments difficulties, arising mainly from education, and nutrition, for instance) are con- fluctuations in world prices of their traditional sistent with national, regional, and sectoral goals. exports, to finance their needs from this source. But even the most well-thought-out plans of The Bank should consider cases of export short- the Bank must inevitably be less than successful fall for program loans only where dependence if the local environment is not conducive to suc- on weak commodities requires basic structural cess. Unless, for instance, a country is com- adjustments in the economy which should be mitted to a policy of making the rural sector financed at long term, or the shortfall is so large productive and, especially, of involving small that the need for assistance is substantially in farmers in development, assistance can be- of excess of the compensatory financing available little help. Recent evidence points to the fact on suitable terms. that, over the past few years, developing coun- 3. Some developing countries may benefit tries have, in fact, increased their commitments from continuing program lending over a period to such a policy. of years because of the inherent structural fea- The lesson-that a country's commitment to tures of their economies. Program lending in project objectives is an essential precondition to such cases should be employed as an instrument success, and that, without commitment, most in assisting a country to obtain specific develop- efforts are futile-is one that is not confined to ment objectives. the rural development sector. The Executive Directors noted an estimate Progress in rural development must, of course, that future Bank and IDA program lending of be ultimately measured by its developmental im- about 7% to 10% of total lending would not pact. Can, in fact, the Bank's strategy develop be an unreasonable expectation. It was pointed low-cost and replicable approaches designed to out, however, that this could not be regarded as improve the productivity and incomes of large a prediction as the occurrence of "special cir- numbers of low-income families on a sustainable scumstances" is always difficult to foresee. The basis? Bank also decided that, in the future, a clearer Figures available for 84 agriculture and rural statement of conditions attached to any particu- development projects approved in fiscal 1977 lar program loan should be made, and that such indicate that the direct beneficiaries may num- 'a statement should be drafted in terms that per- ber some 5 million farm families, or about 30 mit the monitoring of performance against those million people. Thus, over the period, fiscal conditions. 1975-77, some 60 million people stand to bene- It was agreed, furthermore, that the basic fit directly from Bank-assisted projects in the assumptions of program lending would, once sector. Moreover, within the total for agriculture again, be reexamined as the review of the fu- and rural development, there has been a sharp ture role of the Bank is continued in fiscal 1978. rise in the share of lending for rural develop- ment-that is, for projects in which more than Rural Development half the direct benefits are expected to accrue to the rural poor. In fiscal 1977, the share has In the three years since the World Bank's risen to 61%, compared with 50% in fiscal 1976 policy on rural development was set forth in and 53% in fiscal 1975. 11 But these figures for the number of benefi- development projects may help generate the ciaries, as well as those for the increments in capability necessary so that "repeater" or sec- annual agricultural production (9 million metric ond-stage projects can cover larger areas and tons in fiscal 1977 alone, over half of which is reach greater numbers of beneficiaries. Man- accounted for by cereals) are estimates only. agement problems may be addressed through a Most of the new-style rural development proj- separate education project-as in Tanzania. Or, ects assisted by the Bank are in their infancy as has been done in the case of Nigeria, local -two to three years old, at best. In most cases, leaders and administrators may be sent to increases in output are expected to be very small nearby countries to study successful ongoing during the early project years; only by the fifth projects similar to those proposed for Bank or sixth year can one see whether earlier esti- assistance. mates will prove correct. It is, therefore, still too Lower-level training: It is not only manage- early to assess, with finality, the impact on farm ment which- is often in need of training. Tech- production and farmer incomes flowing from the nical training is also important for those who Bank's rural development strategy. are responsible for implementing the project- £ It has been noticed, however, that in a num- the extension workers, the agricultural credit ber of countries, the Bank, working closely with supervisors, and the machinery operators for governments, has helped establish or strengthen roads and other construction work. And, in- the institutional framework for project imple- creasingly, the point is being recognized that mentation. This has subsequently formed the the farmers themselves can often benefit from basis for a wider approach, with substantial im- direct training schemes. In addition to the train- pact beyond the confines of the project areas ing of technicians, attention must also be given themselves, or beyond the set of activities di- to providing incentives-hardship allowances, rectly supported by the project. In addition, the transportation (motor bikes), and housing, for large number of project proposals that extend instance-which will help make it easier to re- or replicate first-phase activities, and which are tain capable staff in areas considered to be un- now being prepared, indicates a considerable in- attractive to live in. terest in the approach among the Bank's mem- The conclusions reached from the Bank's ex- ber governments. perience in implementing its rural development Some 50 rural development projects have strategy may be summarized briefly. The start been under implementation for three years or made is promising but the problems of reaching more. Problems surrounding a number of as- the rural poor with effective solutions are for- pects-institutional development, the focus on midable. Both the design of appropriate tech- target groups, local management, and lower- nical and administrative solutions to deal with level training-have been identified, and several these problems, and the response of the small useful lessons have been learned. farmers to the opportunities made available to Institutional development: Strengthening the them, call for careful monitoring and evalua- delivery of effective services for low-income tion by the Bank, and the ability to adapt proj- rural producers often offers the most promising ects to deal with any problems which may arise. way of dealing with the problems of rural pov- The Bank, therefore, has still much to learn- erty-and at a relatively modest incremental both from its problems as well as its successes. cost. But many agencies charged with project implementation, particularly at local levels, lack Small-scale Enterprise experience. It is important, therefore, that issues of project implementation be discussed thor- The Bank's experience in attempting to alle- oughly and in detail with operating staff at lower viate the problems of the urban sector is more levels of government, as well as with government limited than its experience with rural develop- staff at the center. ment. Only in fiscal 1976, for instance, was a Target groups: Greater understanding is systematic beginning made to assess the nature needed of the social and cultural constraints and extent of urban poverty. Only tentatively affecting the rural poor. Often, the chronically have the Bank's broad strategy and goals in the poor have fallen into behavioral patterns and sector been defined. attitudes which tend to prevent them from tak- The Executive Directors have in recent years ing full advantage of their own development discussed the Bank's proper role in such crucial potential. To gain a better understanding of the sectors of urban development as housing, urban pathology of poverty, the Bank, in several cases, transport, and development finance companies is now including sociological and anthropologi- (DFCs). In fiscal 1977, they gave special atten- cal assessments as part of project design and tion to the Bank's role in the subsector of small- appraisal. scale enterprise (SSE) development. (5) The point Local management: Many rural development was underlined that the creation of employment projects are necessarily complex, and matching the design of the project to the capability of thoe whoigare thepojmanag itoh callpo areitfu (1) The definition of small-scale enterprise varies widely from those who are to manage it calls for careful )cosntsy to country; in its rough categorization, the Bank judgmet. Buiding omprehnsivemanage- uses the respective country definitions, subject to an upper judgment. Building comprehensive manage- uses the $eSslimit of $250,000 (in 1976 prices) for fixed assets, exclud- ment training systems into first-phase rural ing land. 12 through assistance to SSEs is critically important for their peak labor demand is likely to coincide to both rural and urban development. with, and not complement, the peak labor de- Most developing countries are characterized mand in agriculture. Hence, other types of small- by a rapidly growing population and labor force. scale production for the rural community- Though much of this labor force will continue blacksmithing, brickmaking, lime kilns, tailor- to be employed in agricultural pursuits, most of ing, carpentry, furniture making, etc.-are ma- the increment will have to be absorbed in non- jor supports to any rural development effort. farm occupations-in villages and towns or The specific problems of SSE development- large urban centers. Where can the new jobs and the possible solutions to these problems- be found? must be distinguished as between modern, or- * The main possibilities lie in the industrial sec- ganized small industries and services, and the tor-broadly defined as the production of non- artisanal/informal sector. farm goods-and in service activities associated The former typically fit into market niches with industrialization. But the industrial pattern and channels, and have a fairly solid manage- 'typical in advanced countries requires a capital ment and levels of technology well adapted to investment per job that exceeds, many times their clientele. Their needs for investment and over, the resources potentially available in most working capital are met largely through internal developing countries. Historically, the indus- cash generation and personal savings rather trialization policies of many governments in the than institutional sources; their savings, or pro- developing world have followed the advanced- pensity to save, are high, but lack of technical country model. For some, this model has proved know-how and access to supply and credit facil- to be appropriate. Others, however, have adopted ities handicaps them in obtaining a wider market. technologies that are more capital-intensive than In the long run, the Bank believes, it is im- are appropriate to their factor endowments. portant to create or strengthen agencies in de- Price and incentive policies have often favored veloping countries that can inform industrial capital-intensive technology, usually used by entrepreneurs and financial institutions about larger firms. Such firms may also have access the technological alternatives available for pro- to institutional credit at artificially low interest duction and product design, and that can de- rates; and public services, used much more by velop and adapt such technology domestically. large than by small enterprises, are also often Trade associations, institutions of technology, subsidized. In general, typical industrial de- universities, and productivity centers can all play velopment incentives-customs exemptions, tax a part-as can Bank assistance, where such holidays, etc.-are more advantageous to larger institutions are inadequate. than to smaller businesses. Bank assistance for the provision of credit to The advantages to developing countries of SSEs, by necessity, will be channeled through giving more encouragement to SSEs are not in- intermediaries in the recipient countries. And considerable, however. SSEs-whether they be in the choice of intermediaries the Bank will in the "modern" manufacturing, nonmanufac- have to look to a wider range of institutional turing (construction, services, etc.) or "informal" patterns than the traditional development finance subsectors-can often generate more jobs per companies. Many DFCs, by their very nature, unit of investment than do large firms; and they are not equipped to lend to small-scale enter- create more unskilled jobs, thus benefiting the prises, as they lack extensive contacts or ex- urban and nonfarm rural poor. There is strong perience with small business; moreover, their evidence, also, that small firms do more for appraisal techniques are usually too elaborate indirect employment than larger businesses (be- for small projects. Some DFCs, however, are cause larger firms usually have a higher pro- establishing special units with simplified pro- pensity to import raw materials and capital cedures for SSE financing-if governments or goods, while small firms buy more domestically). central banks give them adequate inducement Other benefits are less quantifiable, though to brave its risks and difficulties. Commercial . well-known. They include the role of SSEs in banks, on the other hand, usually have a branch nurturing entrepreneurship, in training and im- network and widespread local contacts. Other proving technical skills, as generators of savings, intermediaries may include investment compa- as sources of stability and coherence to com- nies, mass-oriented institutions (workers' banks, munities, as means for reducing inequities of savings and loan institutions, credit unions, income distribution between regions and eco- etc.), and cooperatives. nomic groups, and as production systems gen- Assistance for the development of SSEs of erally involving less adverse environmental an artisanal type, or in the "informal" subsector impact. (which accounts for a major share of nonagri- SSEs are also crucially important in rural cultural employment), is made difficult by the development. In most developing countries, a typically fragmented, dispersed character of major problem of the rural economy is under- these activities. Artisanal or informal enterprises employment, which depresses rural incomes and generally depend on middlemen for credit, raw increases migration to cities in the slack agri- materials supply, and marketing services. Effec- cultural season. Development of agricultural tive assistance to them requires devising an processing industries is only part of the answer, institutional delivery system (private, coopera- 13 tive, or governmental) that will simulate the ing-particularly for SSEs in the informal sec- positive aspects of the middleman/moneylender tor. Project design will necessarily be flexible, system-its "full service package," its opera- and will be based on careful preparatory work, tional flexibility, and "leanness"-while reduc- for there is much to be learned in assisting small ing its exploitative features. enterprises. The Bank's experience, to date, is Among the many problems typically con- limited; during the five-year period, fiscal 1972- fronting the more modern SSEs, two stand out: 76, out of $2,200 million in assistance provided marketing and finance. through DFCs, only about $100 million has been Marketing, the major problem of most small explicitly directed to SSE development. Future manufacturers, can also be the starting point projects will be carefully monitored to enable for project intervention. Small firms often lack subsequent operations to benefit from experience. direct access to broader, lucrative markets. Dis- In the meantime, the Bank, in its country tance. poor quality and design, limited produc- economic and industrial sector work, and in its tion capacity, and lack of information about dialogue with governments on development pol- potential markets impede their gestation and icy, will continue to urge that policy and regu- growth. Firms at a distance from markets, in latory measures which encourage inappropriate rural areas or small towns, need institutional capital-intensity and inhibit the effective func- support to get information on growth markets tioning of small-scale industries be corrected. It and related design, price, and quality require- is also calling to the attention of those DFCs ments. They may also be helped through the with whom it presently has relations, the im- establishment of joint collection points with portant potential role of small enterprise de- quality control and through common transpor- velopment, and the desirability of examining tation schemes. possible labor-intensive options in their sub- Very small enterprises are usually short of project appraisals. cash; they are hesitant to borrow; and they have In addition, the Bank is exploring the poten- little access to institutional credit. Many of them tial of intermediaries, other than DFCs, which could advantageously use local currency loans might be effective channels of assistance to for raw materials and upgraded equipment, for SSEs. But because many of the factors affecting their foreign exchange requirements usually rep- the growth of small enterprise and informal resent but a small percentage of their total credit sector activity are still imperfectly known, the needs. Because they are labor-intensive and raw Bank's approach is to be one of practical experi- material-intensive, SSEs need credit mostly for mentation for some time to come. As it gains working capital rather than for fixed assets. But knowledge and understanding of the problems because they often keep sketchy accounting rec- involved, it hopes to be able increasingly to help ords and cater to volatile markets, commercial devise delivery systems that will offer good pros- banks and other financing institutions hesitate pects for successful replication. to provide them the assistance they need. Effective provision of finance to SSEs, through whatever channels, will require greatly simplified Poverty Amid Growth criteria and procedures, compared with those y normally used by DFCs, or even by most com- For the past three years, the Annual Report mercial banks. Paperwork should be reduced to of the World Bank has noted the dramatic a minimum. Standard loan packages, defining changes in the world's economy and has re- the objects of expenditure and indicating the flected on how those changes have affected the amounts needed for different economic activi- developing countries. ties, could be prepared for quick reference by The events point to a number of conclusions loan officers. which are of significance to future developments Government commitment to policies of en- in the nonindustrialized world. couraging small-scale enterprise development is Four may be briefly summarized. essential if national programs are to be success- First, extreme poverty in the developing coun- ful. Price and incentive distortions, which tend tries is the most pressing problem of develop- to favor capital-intensive technology, need to ment. Almost a billion people are today living be remedied. Solid research on alternatives in poverty, and growth rates in the poorest de- should be undertaken and disseminated. veloping countries are insufficient to make a For its part, the Bank is committed to giving dent in alleviating, much less eradicating, greatly increased emphasis to assisting small- poverty. scale enterprises in its future operations. This Second, the higher-income developing coun- does not mean denying support to larger enter- tries appear to have been less affected in terms prises as well; depending on circumstances in of rates of growth by the economic fluctuations the country, they may offer greater potential for of the mid-1970s than the developed countries. industrial and service linkages, labor productiv- The poorest have, in general, been set back. ity, and employment objectives. Third, policy adjustments launched in re- In its future operations in this field, the Bank sponse to the mid-decade recession may well will give close attention to specific needs for prove, for many countries, to be a springboard working capital and for local currency financ- for continued growth in the future-if com- 14 bined with further improvements in economic GNP Per Capita Growth Rates, 1950-75 management. (Percentages) Fourth, greater efforts, by both the industrial- ized and developing countries, are needed if future growth is to be accompanied by a sub- 1950-60 1960-70 1970-75 1950-75 stantial alleviation of poverty. These efforts Developing countries 2.8 3.2 3.0 3.1 include increases in transfers of real resources South Asia 2.7 1.5 0.5 1.8 by the industrialized countries and measures by East Asia 3.3 4.0 4.8 3.9 the developing world to make more productive Africa 2.4 1.6 2.1 2.0 use of such transfers. Middle East 5.0 4.4 6.4 5.0 Why was it that many of the developing Latin America 2.1 2.5 3.7 2.6 countries were less affected by the recent reces- Developed countries"l' 3.0 4.1 1.9 3.2 sion than the developed countries? (1) OECD countries, excluding Greece, Portugal, Spain, and , In the poorest developing countries, recent Turkey. economic setbacks were prevented from being sharper than they were by increases in domestic GDP Growth Rates, 1974-76, agricultural production. In 1974, sub-Saharan (Percentages) Africa was just recovering from four years of Average annual growth rates severe drought, and the monsoon had been poor in South Asia. The subsequent improvement in 1974 1975 1976 1974-76 harvests due to better weather and to productive Developing countries investments made in the agricultural sector was (including capital the overriding factor in helping many of the deficit oil-exporting poorest countries ride out the recession years countries) 6.8 4.3 5.9 5.1 of 1975 and 1976. Developing countries The economic events of the mid-1970s af- (excluding capital fected higher-income developing countries in deficit oil-exporting ways different from the poorest. Because most countries) 6.4 3.9 4.9 4.4 depend more heavily than the poorest on oil Developed countries") -0.1 -1.1 5.3 2.0 imports and on international trade, they were (1) OECD countries, excluding Iceland, Greece, Portugal, acutely affected by higher petroleum prices and the worldwide recession. Most of the countries in this group adjusted to the new economic situa- manufactured products from these nations is tion quickly, however; many made necessary becoming competitive internationally. The social internal adjustments in their fiscal, monetary, and physical infrastructure of developing coun- or price policies; most were able to borrow tries has been transformed. Hundreds of thou- heavily from private sources to maintain their sands of schools have been built; ports, roads, investment, and thus they avoided too sharp a railways, and power stations have been con- decline in growth rates. structed. The events of the mid-1970s did not seri- Developing countries, already at widely dif- ously interrupt the growth trend many develop- ferent levels of development in the 1950s, have ing countries have maintained now for a quarter found that different growth rates have accentu- of a century. Indeed, growth over this period ated the differences among them. The average has been accelerating-except in the poorest long-term rate of growth for developing coun- countries of South Asia and Africa. tries conceals wide differences between countries Per capita growth rates of developing coun- which stood still (or even declined in terms of tries, in the period 1950-75, have not only been real per capita income) and those which grew historically unprecedented; they were also quite at more than 5% yearly. Nonetheless, while not unexpected. In the 1950s, most developing na- all developing countries shared equally in the tions were barely emerging from colonial de- worldwide economic expansion of the past pendency; many were enmeshed in political quarter century, most were able, in varying de- difficulties; and the vicious circle of poverty grees, to strengthen the foundations for further ,seemed to be all but inescapable. growth. Those foundations were strong enough Nevertheless, for a quarter of a century in to help most adjust to an economic crisis that the developing world, the output of food has simultaneously affected all the countries of the more than kept pace with the rapid growth of world. population. Nonfood agricultural production For the developing countries, the principal has expanded even more rapidly-even in some and most promising effect of the recent eco- of the least developed countries. All but the nomic shocks is likely to lie in the policy im- least developed countries have established manu- provements and adjustments they engendered. facturing sectors employing a variety of complex The adjustments had several components. techniques, and producing a wide range of con- Countries recognized that their export earnings sumption and intermediate goods. The more during the "boom" years of 1972 and 1973 industrialized developing countries also manu- were exceptionally high, and that demand man- facture capital goods, and a widening range of agement, and investment and budgetary policies 15 should be based on expectations of long-run Bank and IDA: export earnings. Some countries have taken steps Lending to Countries with to skim off unusually high export earnings in Annual per Capita Income "boom" times, and hold them in reserve for below $265,(') 1969-77(2) leaner periods. (USS mrillions. Fiscal years.) Developing countries-like much of the rest of the world-also learned to adjust to the sharp increases in the prices of petroleum prod- s ucts and capital goods. In many, domestic prices X of oil and power were raised to the international -2,600 N level despite the adverse impact on the living standards of the bulk of the population through increased prices of transport, agricultural in- - 2,400 puts, and cooking and lighting fuels. As the N C'J recession was ending, oil-importing countries were able to increase their exports to help meet the additional cost of imports. -2,200 These adjustments, if linked with improve- ments needed in such matters as price, invest- ment, monetary, and fiscal policies, should help -2,000 the developing countries-especially those al- ready well advanced and growing rapidly-to face the years ahead with sound prospects for continued growth. For the poorer countries, 1,800 however, particularly those still caught in the "downward spiral" of poverty, past adjustments o and improved economic management are insuffi- 1,600 : ) cient to meet the challenge of alleviating pov- erty., High levels of external assistance will a) continue to be needed if growth rates are to co co accelerate. -1,400 _- But growth per se has never been the sole objective of development. As the developing CO countries achieved political independence, they 1,200 i sought to improve the living standards of the Co mass of their populations. Breaking through the a 0 0o circle of poverty was so difficult, however, that N ( D many countries felt that only through rapid 1,000 C') growth could they begin to close the economic co gap between them and the industrialized world. Welfare considerations could even detract from growth, it was argued; benefits of growth would, - 800 somehow, "trickle down" to the poor. By the end of the 1 960s, however, mass poverty was still much in evidence despite 600 marked improvements in living standards in many countries. Concern over ways to alleviate X; poverty has again come to the forefront in much 400 a of the developing world. The challenge these Co countries face is to combine growth with equity so as to accelerate and mutually reinforce the gains from both. 200 i To meet this challenge, efforts are called for I by both the developing and developed worlds. X ' Agriculture is clearly the key to improving 0 the living standards of the bulk of the poor of -I 7i Xe X. - f M<_ i the developing world. Where biases against agriculture exist, they have to be removed to - increase productivity and incomes in subsistence 1969-73 1974 1975 1976 1977 and cash crop farming, whether by landholders, Annual tenants, or agricultural laborers. In some coun- Average tries, improvement in rural incomes also requires an accelerati6n of changes in land tenure and (1)975 dollars. social structure. (2)EXclud ng clv exporters with capital surplus. 16 Bank and IDA: Trends in Lending, by Sector (US$ millions. Fiscal years.) 1974 1975 1976 1977 Bank IDA Total Bank IDA Total Bank IDA Total Bank IDA Total Agriculture 646.5 309.4 955.9 1,221.5 636.1 1,857.5 1,209.2 418.4 1,627.6 1,637.8 670.1 2,307.9 Development finance companies 309.0 36.2 345.2 469.5 34.5 504.0 697.1 64.0 761.1 730.7 25.5 756.2 Education 134.4 18.7 153.1 126.7 97.1 223.8 244.9 76.4 321.3 210.1 78.5 288.6 Electric power 755.9 13.5 769.4 475.7 28.0 503.7 690.3 259.0 949.3 784.5 167.0 951.5 Industry 309.1 109.7 418.8 665.3 125.0 790.3 501.0 105.0 606.0 720.8 16.0 736.8 Nonproject - 235.0 235.0 195.0 325.0"' 520.0"' 75.0 354.0-' 429.0'2' 126.5 90.0 216.5 Population and nutrition - 17.0 17.0 25.0 15.0 40.0 25.8 - 25.8 42.5 4.8 47.3 ITechnical assistance 16.0 5.0 21.0 - - - 13.0 19.0 32.0 1.5 15.4 16.9 Telecommu- nications 66.5 41.4 107.9 96.0 103.0 199.0 59.0 5.2 64.2 140.0 - 140.0 Tourism 30.6 16.0 46.6 30.7 - 30.7 21.0 10.0 31.0 98.6 - 98.6 Transportation 733.2 223.8 957.0 815.8 172.9 988.7 1,114.7 256.2 1,370.9 875.6 172.0 1,047.6 Urbanization 68.0 45.0 113.0 70.5 22.5 93.0 79.6 - 79.6 128.2 30.0 158.2 Water supply and sewerage 149.2 24.5 173.7 128.0 17.1 145.1 246.5 88.1 334.6 262.5 38.2 300.7 Total 3,218.4 1,095.2 4,313.6 4.319.7 1.576.2 5,895.8 4.977.1'', 1,655.3 6,632.4 5,759.30' 1,307.5 7,066.8 Details may not add to totals because of rounding. to Includes $215 million for "Maintenance imports." (2) Includes $200 million for "Maintenance imports." (t> Includes $477.8 million lent on Third Window terms. (') Includes $222.6 million lent on Third Window terms. Industrialization and urban development are is essential to the growth of developing coun- complementary to agriculture in a development tries' exports. Aid flows on concessional terms strategy that has to take account of the rapid are required, most particularly for the growth growth in population. As rural productivity in- of the poorer countries. Access to capital mar- creases and urban incomes rise in developing kets in the industrialized world is an important countries, rapid migration to urban centers often factor in the development of many higher- occurs. This is due to the fact that higher agri- income developing nations. In an increasingly cultural productivity reduces the need for addi- interdependent world, the industrialized coun- tional rural labor; increasing urban incomes, tries have a strong moral and economic interest of course, act as a magnet for the poor, rural in the accelerated development of the poor. labor force. It is unlikely that this flow can be stemmed, * * and major policy adjustments are required to absorb the migrants productively. Appropriate Late in fiscal 1977, the Bank, in the light of technology must be encouraged to accelerate the many discussions about international eco- employment creation and to increase urban nomic issues during the past year, decided to incomes, particularly in the informal sector. undertake immediately an analysis of major de- oUrban population growth requires extensive velopment issues in order to promote their better social and infrastructure investments which understanding in both the industrialized and must be undertaken to provide public goods at developing countries. The analysis will, it is costs and standards appropriate to the level of hoped, enable policymakers to appreciate better the country's income in order that they may be the interaction of developed and developing supplied to the bulk of the population. economies, and thus strengthen the political abil- Development policies for the exploitation of ity to deal effectively with developmentproblems. minerals and energy resources are also needed, The analysis is to be done in close consulta- as are continued efforts by developing countries tion with the International Monetary Fund and to expand their exports to the markets of indus- with other interested parties. Care will be exer- trialized countries. cised to make sure that the work neither dupli- For their part, the countries of the industrial- cates nor encroaches on any similar studies under ized world can be productive partners in helping way in other international organizations. It is meet development's challenge. Their economic hoped that a draft report might be prepared in management is critical to the growth of the in- time for consideration by the Development ternational economy. Access to their markets Committee early in fiscal 1979. 17 Bank Loans and IDA Credits Approved in Fiscal Year 1977, by Region July 1, 1976-June 30, 1977 (USS millions) Bank loansG) IDA credits(') Total(') Region Country Number(2) Amount Number(2) Amount Number(2) Amount Eastern Africa Botswana ............................ 1 $ 20.0 - $ - 1 $ 20.0 Butrundi ............................. - - 1 10.0 1 10.0 Ethiopia . . ............... - - 2 57.0 2 57.0 Kenya ............................... 7 115.0 - 40.0 7 155.0 Lesotho .............................. - - 1 2.5 1 2.5 Madagascar .......................... - - 1 14.0 1 14.0 Malawi .............................. 1 17.0 1 15.0 2 32.0 Mauritius ............................ 1 3.6 - - 1 3.6 Rwanda ............................. - - 3 19.8 3 19.8 Somalia .............................. - - 2 12.0 2 12.0 Sudan ............................... 1 12.0 1 25.0 2 37.0 Swaziland ............................ 2 9.0 - - 2 9.0 Tanzania ............................. 4 75.0 4 39.2 8 114.2 Zaire ................................ - - 3 26.0 3 26.0 Zambia .............................. 3 60.1 - - 3 60.1 Total .............................. 20 $ 311.7 19 S 260.5 39 $ 572.2 Western Africa Benin, People's Republic of .............. - - 2 $ 7.2 2 S 7.2 Cameroon .......................... 2 40.0 3 23.5 5 63.5 Chad . . ......................... - . - 2 20.0 2 20.0 Congo, People's Republic of the .......... 1 8.0 - 0.5 1 8.5 Ghana .......................... 2 48.0 - 9.0 2 57.0 Ivory Coast .......................... 2 64.0 - - 2 64.0 Liberia .......................... 2 13.3 1 7.0 3 20.3 Mali .......................... - - 2 26.0 2 26.0 Mauritania .......................... - - 2 6.2 2 6.2 Nigeria . ......................... 2 62.0 - - 2 62.0 Senegal .......................... 3 23.8 - - 3 23.8 Togo .......................... - - 1 10.0 1 10.0 Upper Volta .......................... - - 2 23.6 2 23.6 Total ............... 14 S 259.1 15 $ 133.0 29 $ 392.1 East Asia and Pacific Indonesia .... ........... 11 $ 440.0 - $ - 11 $ 440.0 Korea, Republic of ...........7.... 443.5 - - 7 443.5 Malaysia .... ........... 4 131.0 - - 4 131.0 Papua New Guinea ... ......... 1 12.0 2 23.0 3 35.0 Philippines ..... .......... 8 317.5 - - 8 317.5 Thailand .... ........... 3 108.0 - - 3 108.0 Total. ............... 34 $1,452.0 2 $ 23.0 36 $1,475.0 South Asia Bangladesh ......... ...... - $ - 4 $ 122.0 4 $ 122.0 Burma ........ .. ..... - - 2 26.0 2 26.0 India ............... 4 269.0 9 481.0 13 750.0 Nepal .... ........... - - 4 28.0 4 28.0 Pakistan .... ........... 4 125.0 2 80.0 6 205.0 Sri Lanka . .............. - - 3 33.2 3 33.2 Total ............... 8 $ 394.0 24 $ 770.2 32 $1,164.2 18 Bank loans"' IDA credits(' TotalG) Region Country Number(2) Amount Number(2) Amount Number'2) Amount Europe, Middle East, and North Africa Afghanistan ......... ................. - $ - 2 $ 18.0 2 $ 18.0 Algeria ............ .................. 3 170.0 - - 3 170.0 Cyprus . .........................1.... 10.0 - - 1 ]0.0 Egypt, Arab Republic of ..... ........... 5 215.5 1 52.0 6 267.5 Greece ............ .................. 2 71.0 - - 2 71.0 Morocco ........... .................. 4 166.0 - - 4 166.0 Oman . ............................... 2 16.5 - - 2 16.5 Portugal .......... ................... 2 74.0 - - 2 74.0 Romania ........... .................. 4 166.3 - - 4 166.3 Spain . ............................... 1 18.0 - - 1 18.0 Syrian Arab Republic ................. 2 67.5 - - 2 67.5 Tunisia . .............................. 4 89.5 - 4.8 4 94.3 Turkey . .............................. 3 170.0 - - 3 170.0 Yemen Arab Republic ...... ............ - - 3 21.0 3 21.0 Yugoslavia ......... .................. 5 240.0 - - 5 240.0 Total . .............................. 38 $1,474.3 6 $ 95.8 44 $1,570.1 Latin America and the Caribbean Argentina ............................ 3 $ 320.0 - $ - 3 $ 320.0 Bahamas ........... .................. 1 10.0 - - 1 10.0 Bolivia . .............................. 5 98.5 - - 5 98.5 Brazil . .............................. 7 425.0 - - 7 425.0 Chile .... ........................... 2 60.0 - - 2 60.0 Colombia .......... .................. 5 281.0 - - 5 281.0 Costa Rica ......... .................. 1 18.0 - - 1 18.0 Dominican Republic .............. .... 2 10.0 - - 2 10.0 Ecuador ..... . . ......... 3 59.0 - - 3 59.0 El Salvador ........................... 1 6.7 - 6.0 1 12.7 Guatemala ......... .................. 2 81.5 - - 2 81.5 Haiti ...... - - 1 10.0 1 10.0 Honduras ...... 2 47.0 - 5.0 2 52.0 Jamaica ...... 1 15.0 - - 1 15.0 Mexico ...... 3 257.0 - - 3 257.0 Nicaragua ...... 1 22.0 - - 1 22.0 Panama ...... 3 57.5 - - 3 57.5 Paraguay ...... 3 40.0 - 4.0 3 44.0 Peru ...... 2 60.0 - - 2 60.0 Total .. 47 $1,868.2 1 $ 25.0 48 $1,893.2 GRAND TOTAL ....................... 161 $5,759.3"'I 67 $1,307.5 228 $7,066.8 ,A) AIl supplements and amendments are included in amounts, but only those qualifying as separate lending operations are included in number. 32) Joint Bank/IDA, Third Window/IDA, Bank/Third Window/IDA operations are counted only once, as Bank operations. (3) Includes $222.6 million lent on Third Window terms. 19 Bank Loans and IDA Credits Approved in Fiscal Year 1977, by Purpose July 1, 1976-June 30, 1977 (US$ millions) Purpose(') Bank IDA Total Agriculture and Rural Development Afghanistan-Agricultural credit ............................ $ - $ 12.0 $ 12.0 Bangladesh-Irrigation .................................... - 21.0 21.0 Bangladesh-Irrigation .................................... - 16.0 16.0 Bangladesh-Research and extension ........................ - 10.0 10.0 Brazil-Area development ................................. 42.0 - 42.0 Brazil-Crop processing, storage ............................ 83.0 - 83.0 Cameroon-Area development ...... ....................... - 2.0 2.0 Cameroon-Area development ...... ....................... - 7.0 7.0 Cameroon-Perennial crops ....... ........................ 25.0 - 25.0 Chad-Area development ....... ........................... - 12.0 12.0 Chad-Irrigation ........... .............................. - 8.0 8.0 Chile-Livestock ........... .............................. 25.0 - 25.0 Colombia-Agricultural credit ....... ....................... 64.0 - 64.0 Colombia-Area development ....... ....................... 52.0 - 52.0 Costa Rica-Agricultural credit ...... ....................... 18.0 - 18.0 Ecuador-Agricultural credit ....... ........................ 15.5 - 15.5 Egypt, Arab Republic of-Irrigation ...... .................. 39.0 27.0 66.0 Ethiopia-Irrigation ......... ............................. - 25.0 25.0 Greece-Area development ....... ......................... 35.0 - 35.0 Haiti-Area development ... .... ................... - 10.0 10.0 India-Agricultural credit ....... .......................... - 200.0 200.0 India-Area development ....... ........................... - 8.0 8.0 India-Fisheries ........... .............................. 14.0 4.0 18.0 India-Irrigation ........... .............................. - 23.0 23.0 India-Perennial crops ........ ............................ - 30.0 30.0 India-Research and extension ...... ....................... - 12.0 12.0 India-Research and extension ...... ....................... - 10.0 10.0 India-Research ........... .............................. - 20.0 20.0 Indonesia-Area development ...... ........................ 30.0 - 30.0 Indonesia-Irrigation ........ ............................. 63.0 - 63.0 Indonesia-Irrigation ........ ............................. 35.0 - 35.0 Ivory Coast-Perennial crops ...... ........................ 20.0 - 20.0 Jamaica-Area development ...... ......................... 15.0 - 15.0 Kenya-Agricultural credit ....... ......................... 5.0 20.0 25.0 Kenya-Area development ....... .......................... 10.0 10.0 20.0 Kenya-Area development ....... .......................... 25.0 - 25.0 Kenya-Irrigation .......... .............................. 34.0 6.0 40.0 Korea, Republic of-Agricultural credit . . .................... 20.0 - 20.0 Korea, Republic of-Irrigation ...... ........................ 95.0 - 95.0 Korea, Republic of-Irrigation ...... ........................ 29.0 - 29.0 Liberia-Area development . . .............................. - 7.0 7.0 Malaysia-Irrigation ......... ............................. 39.0 - 39.0 Mali-Area development ....... ........................... - 15.5 15.5 Mexico-Area development ....... ......................... 120.0 - 120.0 Morocco-Agricultural credit ...... ........................ 35.0 - 35.0 Morocco-Irrigation ......... ............................. 41.0 - 41.0 Nepal-Irrigation .......... .............................. - 9.0 9.0 Nigeria-Area development ..... .......................... 35.0 - 35.0 Nigeria-Area development ....... ......................... 27.0 - 27.0 Pakistan-Other agriculture ..... .......................... - 40.0 40.0 Pakistan-Livestock ......... ............................. 10.0 - 10.0 Panama-Fisheries ......... .............................. 7.5 - 7.5 Panama-Livestock ......... ............................. 8.0 - 8.0 Papua New Guinea-Area development ..... ................. 12.0 - 12.0 Paraguay-Area development .... ......................... 22.0 - 22.0 Peru-Irrigation ........... ............................. 25.0 - 25.0 Philippines-Agricultural credit ...... ....................... 36.5 - 36.5 Philippines-Area development ...... ....................... 15.0 - 15.0 Philippines-Irrigation ........ ............................ 50.0 - 50.0 Philippines-Irrigation ........ ............................ 15.0 - 15.0 Romania-Irrigation ......... ............................. 60.0 - 60.0 Rwanda-Area development ...... ......................... - 1.8 1.8 Rwanda-Area development ....... ........................ - 14.0 14.0 Sri Lanka-Irrigation ......... ............................ - 19.0 19.0 20 Purpose(') Bank IDA Total Agriculture and Rural Development (continued) Sri Lanka-Irrigation .....................................$ - $ 5.0 $ 5.0 Sudan-Area development ................. 17.0 17.0 Swaziland-Area development ................ 4.0 - 4.0 . Syrian Arab Republic-Livestock . .............. 17.5 - 17.5 Tanzania-Area development ................ - 7.2 7.2 Tanzania-Fisheries .................... 9.0 9.0 Tanzania-Crop processing, storage . ............ - 8.0 8.0 . Tanzania-Forestry .................... 7.0 - 7.0 Thailand-Irrigation ...................................... 55.0 - 55.0 Thailand-Research and extension .......................... 28.0 - 28.0 Tunisia-Agricultural credit ............................... 12.0 - 12.0 Tunisia-Irrigation ....................................... 42.0 - 42.0 Upper Volta-Area development ........................... - 3.6 3.6 Yemen Arab Republic-Livestock ........................... - 5.0 5.0 Yugoslavia-Irrigation .................................... 54.0 - 54.0 Yugoslavia-Crop processing, storage ........................ 26.0 - 26.0 Yugoslavia-Crop processing, storage ........................ 24.0 - 24.0 Zaire-Area development ................................. - 8.0 8.0 Zaire-Livestock ......................................... - 8.0 8.0 Zambia-Forestry ........................................ 16.8 - 16.8 Total ................................................. $1,637.8 $ 670.1 $2,307.9 Development Finance Companies Argentina ............................................... $ 100.0 $ - $ 100.0 Bolivia ................................................. 12.0 - 12.0 Colombia ............................................... 15.0 - 15.0 Ecuador ................................................ 26.0 - 26.0 Indonesia ............................................... 15.0 - 15.0 Indonesia ............................................... 40.0 - 40.0 Kenya .................................................. 20.0 - 20.0 Korea, Republic of ....................................... 70.0 - 70.0 Korea, Republic of ....................................... 82.5 - 82.5 Lesotho ................................................ - 2.5 2.5 Liberia ................................................. 7.0 - 7.0 Morocco ............................................... 45.0 - 45.0 Nepal .................................................. - 4.0 4.0 Pakistan ................................................ 25.0 - 25.0 Paraguay ............................................... 10.0 - 10.0 Peru ................................................... 35.0 - 35.0 Portugal ................................................ 50.0 - 50.0 Rwanda ................................................ - 4.0 4.0 Senegal ............. ................................... 4.2 - 4.2 Somalia ................................................ - 5.0 5.0 Swaziland ............................................... 5.0 - 5.0 Thailand ................................................ 25.0 - 25.0 Turkey ................................................. 74.0 - 74.0 Turkey ...... .... 70.0 - 70.0 Zaire . .................................................. - 10.0 10.0 Total ................................................. 730.7 $ 25.5 $ 756.2 ,Education Afghanistan . ............................................. - $ 6.0 $ 6.0 Algeria ..48.5 - 48.5 Bolivia ..15.0 - 15.0 Brazil ..32.0 - 32.0 Burundi ..- 10.0 10.0 Congo, People's Republic of the . .8.0 - 8.0 Congo, People's Republic of the( . . .- 0.5 0.5 Egypt, Arab Republic of ..- 25.0 25.0 Indonesia ..19.0 - 19.0 Liberia ..6.3 - 6.3 Madagascar ..- 14.0 14.0 Malaysia ..35.0 - 35.0 (continied) 21 Bank Loans and IDA Credits Approved in Fiscal Year 1977, by Purpose (continued) JLlly 1, 1976-Juine 30, 1977 (US$ millions) Purpose") Bank IDA Total Education (continued) Pakistan ................................................ $ $ 15.0 $ 15.0 Papua New Guinea ..................... 4.0 4.0 Paraguay ........................................8.0 4.0 12.0 Philippines .............................................. 25.0 - 25.0 Zambia ................................................. 13.3 - 13.3 Total ................................................. $ 2710.1 S 78.5 $ 288.6 Electric Power Argentina ......... $ 115.0 $ - $ 115.0 Brazil ......... 82.0 - 82.0 Chile ......... 35.0 - 35.0 Egypt. Arab Republic of ......... 48.0 - 48.0 Ghana ..9.0 9.0 18.0 Ghana ....... 39.0 - 39.( Guatemala ....... 55.0 - 55.0 India ....... - 150.0 150.0 Indonesia ......... 116.0 - 116.0 Ma]awi ....... 17.0 8.0 25.0 Malaysia ....... 22.0 - 22.0 Nicaragua ....... 22.0 22.0 Panama ....... 42.0 42.0 Philippines ....... 58.0 - 58.0 Tanzania ....... 30.0 - 30.0 Tunisia ........... 14.5 - 14.5 Yugoslavia ......... 80.0 - 80.0 Total .. . . . . ........................... $ 784.5 $ 167.0 S 951.5 Industry Brazil-Fertilizer and chemicals ............................ $ 64.0 $ - S 64.0 Brazil-Fertilizer and chemicals .......................... 82.0 - 82.0 Burma-Mining, other extractive ............ .. ............. - 16.0 16.0 Egypt, Arab Republic of-Iron and steel . ........... 2.5 - 2.5 India-Mining, other extractive ..... ...........1........... 150.0 - 150.0 Korea, Republic of-Other industry ................. 80.0 - 80.0 Mexico-Iron and steel .................. .................. 95.0 - 95.0 Morocco-Small industry ................ ................. 45.0 - 45.0 Pakistan-Fertilizer and chemicals ........... ..O............. 55.( - 55.0 Romania-Fertilizer and chemicals .-....................... 18.3 - 18.3 Romania-Other industry ................. ................. 38.0 - 38.0 Romania-Textiles ........................... 5(.0 - 50.0 Spain-Other industry .................. .................. 18.0 - 18.0 Tanzania-Textiles ....................................... 23.0 - 23.0 Total ..S,.. 720.8 $ 16.0 $ 736.8 Nonproject Bangladesh ., .............,,.S - $ 50.0 $ 50.0 Bangladesh' ..- 25.0 25.0 Egypt, Arab Republic of ..70.0 - 70.0 Guatemala ..26.5 - 26.5 Tanzania ..- 15.0 15.0 Zambia .. ,30.0 - 30.0 Total . $ 126.5 $ 90.0 S 216.5 Population Dominican Republic-Population and family health ............ $ 5.0 $ - S 5.0 Indonesia-Nutrition ......... ........... 13.0 - 13.0 Indonesia-Family planning ............... - 24.5 - 24.5 Tunisia"'-Family planning .................... ........... - 4.8 4.8 Total,,,.. .............. .$ 42.5 $ 4.8 $ 47.3 22 Purpose M Bank IDA Total Technical Assistance Benin, People's Republic of ................................ $ - $ 1.7 $ 1.7 Cameroon ............................................ - 4.5 4.5 Mauritania ........................ ...................... - 2.7 2.7 Mauritania ....................... ...................... - 3.5 3.5 Nepal .......................... ........................ - 3.0 3.0 Oman . .. 1.5 - 1.5 Total ................................................. $ 1.5 $ 15.4 $ 16.9 Telecommunications Colombia . .............................................. $ 60.0 $ - $ 60.0 India .......................... ......................... 80.0 - 80.0 Total ................................................. $ 140.0 $ - $ 140.0 Tourism Kenya . .............................................. $ 17.0 $ - $ 17.0 Mexico ......................... ........................ 42.0 - 42.0 Senegal ......................... ........................ 13.6 - 13.6 Turkey ........................ ........................ 26.0 - 26.0 Total . ................................................ $ 98.6 S - $ 98.6 Transportation Algeria-Highways ......... .............................. $ 41.5 $ - $ 41.5 Algeria-Ports and shipping ....... ........................ 80.0 - 80.0 Argentina-Highways ........ ........................... 105.0 - 105.0 Benin, People's Republic of-Highways ..... ............... - 5.5 5.5 Bolivia-Airlines and Airports ............... .............. 25.0 - 25.0 Bolivia-Railways .......... .............................. 35.0 - 35.0 Botswana-Highways ........ ............................. 20.0 - 20.0 Burma-Ports and shipping ....... ......................... - 10.0 10.0 Cameroon-Ports and shipping ...... ....................... 15.0 10.0 25.0 Colombia-Highways ........ ............................. 90.0 - 90.0 Cyprus-Highways ......... .............................. 10.0 - 10.0 Dominican Republic-Highways ...... ...................... 5.0 - 5.0 Ecuador-Highways ......... ............................. 17.5 - 17.5 Ethiopia-Highways ......... ............................. - 32.0 32.0 Honduras-Highways ........ ............................. 35.0 - 35.0 Honduras-Ports and shipping ...... ........................ 12.0 5.0 17.0 Indonesia-Ports and shipping ...... ........................ 32.0 - 32.0 Kenya-Highways ......... .............................. 4.0 4.0 8.0 Korea, Republic of-Ports and shipping ..... ................. 67.0 - 67.0 Malaysia-Highways ........ ............................. 35.0 - 35.0 Mali-Railways ........... ............................... - 10.5 10.5 Mauritius-Ports and shipping ...... ........................ 3.6 - 3.6 Oman-Highways .......... .............................. 15.0 - 15.0 Pakistan-Railways ......... ............................. 35.0 25.0 60.0 Papua New Guinea-Highways ...... ...................... - 19.0 19.0 Philippines-Highways ........ ............................ 95.0 - 95.0 Portugal-Highways ......... ............................. 24.0 - 24.0 Senegal-Ports and shipping ................... ........... 6.0 - 6.0 Somalia-Highways ... .................................. - 7.0 7.0 Sudan-Railways .......... .............................. 12.0 8.0 20.0 Togo-Highways .......... .............................. - 10.0 10.0 Upper Volta-Highways ....... ............................ - 20.0 20.0 Yemen Arab Republic-Ports and shipping ..... .............. - 6.0 6.0 Yugoslavia-Highways ........ ............................ 56.0 - 56.0 Total .................... ............................ $ 875.6 $ 172.0 $1,047.6 Urban Development El Salvador-Sites and services ...... ....................... $ 6.7 $ 6.0 $ 12.7 India-Urban transport ............... .. ................ 25.0 - 25.0 India-Urban services ........ ............................ - 24.0 24.0 Indonesia-Infrastructure ....... ........................... 52.5 - 52.5 Ivory Coast-Urban transport, housing ..... .................. 44.0 - 44.0 Total . $ 128.2 $ 30.0 $ 158.2 (continued) 23 Bank Loans and IDA Credits Approved in Fiscal Year 1977, by Purpose (continued) July 1, 1976-June 30, 1977 (US$ millions) Purpose(l) Bank IDA Total Water Supply and Sewerage Bahamas ............................................... $ 10.0 $ - $ 10.0 Bolivia ................................................. 11.5 - 11.5 Brazil .................................................. 40.0 - 40.0 Egypt, Arab Republic of ................................... 56.0 - 56.0 Greece ................................................ 36.0 - 36.0 Malawi ................................................. - 7.0 7.0 Nepal .................................................. - 8.0 8.0 Nepal'<' ................................................. - 4.0 4.0 Philippines .............................................. 23.0 - 23.0 Sri Lanka ............................................... - 9.2 9.2 Syrian Arab Republic .... ........................... .... 50.0 - 50.0 Tanzania ............................................... 15.0 - 15.0 Tunisia ................................................. 21.0 - 21.0 Yemen Arab Republic ..................................... - 10.0 10.0 Total ................................................. $ 262.5 $ 38.2 $ 300.7 GRAND TOTAL ............. ......................... $5,759.3" $1,307.5 $7,066.8 (X) Operations have been classified by the major purpose they finance. Many projects include activity in more than one sector or subsector. (2) Amendment/supplement to previous loan or credit, not counted as a separate lending operation. (:7) Includes $222.6 million lent on Third Window terms. Capital Flows, DAC and OPEC equivalent of 0.7% of its GNP in the form of ODA. Sweden, which in 1974 became the first Preliminary data from the Development As- DAC country to meet this target, provided sistance Committee (DAC) (6) of the Organisa- 0.82% in 1976. The Netherlands increased its tion for Economic Co-operation and Develop- ODA/GNP ratio to 0.82% from 0.75% in ment (OECD) indicate that Official Development 1975. Assistance (ODA) of $13,741 million by DAC Very preliminary data indicate that total flows members rose by only 1% in dollar terms, and of financial resources, which include export declined in real terms in calendar year 1976. credits extended by official and private institu- Ten of the 17 DAC member governments in- tions, direct and portfolio investments, and creased their outflow of ODA in dollars during grants by private voluntary organizations to de- the year, and five countries(7) also raised it as a share of their gross national product (GNP). As a percentage of their combined GNP, ODA (6) Includes Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany (Federal Republic of), Italy, from members of the DAC fell back from Japan, the Netherlands, New Zealand, Norway, Sweden, 0.36% in 1975 to 0.33% in 1976. ~Switzerland, United Kingdom, 'United States, and the Com- 0.36% in 1975 to 0.33 % in 1976. mission of the European Communities. In 1976, Norway became the third DAC (7) Italy, the Netherlands, Norway, Switzerland,and the United Kingdom. (Finland, France, Sweden, and the United States country to reach the target of providing the maintained their percentages at 1975 levels.) 24 The Flow of Financial Resources from DAC Countries to Developing Countries and Multilateral Institutions: 1971-76 (USS billions) Net disbursements 1971 1972 1973 1974 1975 1976(P) Total, official and private(' 17.85 19.69 24.62 27.98 39.94 39.61 As share of GNP (%) 0.80 0.77 0.79 0.82 1.05 0.96 Total official 8.95 10.08 11.81 13.50 16.61 17.17 Official Development Assistance'2' 7.69 8.54 9.35 11.32 13.59 13.74 As share of GNP (%) 0.35 0.33 0.30 0.33 0.36 0.33 Total privatet") 8.90 9.61 12.81 14.48 23.33 22.44 Details may not add to totals because of rounding. (1) Includes grants by private voluntary agencies. (2) "Official Development Assistance" is fully defined in Statistical Annex Table 3, as is the content of the remainder of official resources, known as "Other Official Flows." P reliminary. veloping countries by DAC members, were over 1974. These undisbursed balances, repre- $39,614 million in 1976, compared with a rec- senting agreements to lend not yet made effec- ord $39,941 million in 1975. According to DAC tive by disbursements, stood at $52,930 million, estimates, total flows in 1976 were equivalent or about 30% of total debt outstanding-slight- to 0.96% of DAC members' combined GNP, ly less than at the end of 1974. and somewhat compared with 1.05% in 1975. These figures higher than in earlier years. As in 1974, some exclude significant amounts in Eurocurrency part of these balances represented an assurance borrowing by developing countries (which are of the continuity of financing for ongoing proj- discussed in the chapter, "Borrowings and ects or anticipated needs. Finance" in this Annual Report). Although most Net borrowing in 1975 was $23,705 million, Euromarkets are located in DAC countries, the higher by $8,470 million than in 1974. As in funds in any one loan do not necessarily origi- 1974, the increase reflected a rise in the borrow- nate in the country issuing it. ing countries' balance of payments deficit on Although the statistics on the aid flows from current account, as well as inflation. members of the Organization of Petroleum- Exporting Countries (OPEC) (8) are much less (s) Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, firm than those for the DAC countries, reports Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. indicate that total net disbursements by OPEC (D This section on external public debt incorporates some of members, which rose rapidly from $1,722 mil- the improvements which are progressively being made in the Bank's Debt Reporting System (DRS), and to the con.- lion in 1973 to $5,809 million in 1974, and to tinuing analysis of problems of external debt which the millionin 1975 appearto havefallen DRS and related information from the Bank and the Inter- $8,072 million in 1975, appear to have fallen national Monetary Fund (IMF) make possible. Although slightly in 1976 to $7,492 million. These figures detailed, consistent statistics of long-termn external debt are sitill limited to public borrowing, defined as borrowing by include both concessionary and nonconcession- public entities or with their guarantee, steps are being taken and inclde a sustantia upward to incorporate information about borrowing by the private ary resources and include a substantial upward sector in developing countries without guarantee by the revision for 1975 (from $5,589 million to debtor country. A review early in 1977 of information about unguaraniteed private borrowing by developing coon- $8,072 million) from what had been previously tries indicated that the amount outstanding at the end of 1976 was on the order of one-fifth of total long-term reported. In 1976, approximately 68% of net external debt and was concentrated in a relatively few disbursements were on concessionary terms. countries. The review has been followed by an active effort to obtain more detailed information from the countries where unguaranteed private sector borrowing abroad is believed to be significant. External Public Debt Improved information about balance of payments de- velopments, resulting from cooperation with IMF staff, has made possible a better understanding of the increas- The continuing analysis of the external public ingly complex patterns of external finance of many devel- oping countries. In brief, the analysis of external debt is debt(") of 84 developing countries reveals an now part of a broader analysis of external finance and increase in such debt during calendar 1975 at balance of payments problems involving both institutions. There have been improvements in the quality and coy- about the same annual rate as in 1974. (See erage of data on external public debt (partly as a result of assistance to memnber governments) and on borrowing in table on page 26.) At year's end, the total of international capital emarkets. The first of the Supplements debt outstanding and disbursed was $120,982 to the World Debt Tables for individual countries was published in September 1976. The Supplements contained million. This total represented an increase of information through the end of 1975. In 1977 and sub- sequent years, these Supplements will be produced for a $20,777 million-or 21 %-over 1974. The larger number of countries and they will be published earlier. 1975 total, including undisbursed balances, in- The Development Committee and its Working Party on creased by $26,168 million to $173,912 million. Access to Capital Markets have been kept fully informed by the staff of the Bank and Fund about these activities This amounted to an increase of some 18% and have strongly supported them. 25 External Public Borrowing of Developing Countries (US$ millions) Debt outstanding (including (disbursed Commit- Net disburse- Developing countries undisbursed) only) ments ments 75 Nonoil-exporting countries 1973 92,965 66,774 19,322 8,460 1974 120,607 82,332 31,863 13,699 1975 140,777 100,043 30,969 20,076 9 Oil-exporting countries 1973 23,829 15,864 6,914 3,277 1974 27,138 17,873 5,254 1,535 1975 33,135 20,940 8,915 3,628 84 Developing countries-Total 1973 116,794 82,638 26,236 11,737 1974 147,744 100,204 37,117 15,234 1975 173,912 120,982 39,884 23,705 The 84 countries include nine(I') oil-export- been used by many countries to facilitate the ing countries, whose net borrowings in 1975, adjustments which were made during those while higher than the very low levels of 1974, years. In 1976, reserves increased by about were still relatively small, $3,628 million. These $ 10,000 million. countries, taken together, had a large current These 75 developing countries which do not account surplus in 1974, but it declined sharply export oil are so diverse that statements about in 1975 and, according to preliminary data, their combined external borrowing and public continued at about the 1975 level in 1976. How- debt are likely to be misleading. It is possible, ever, by the end of 1975, it was evident that however, to generalize about regional groupings some of these countries, particularly the larger which, to a considerable extent, coincide with and poorer of them, for example, Indonesia, categories based on average per capita national would not be, in the near future, in a position income. Broadly, the developing countries in the radically different from many other developing Mediterranean(12) region of Europe are among countries. those with per capita incomes a good deal higher The balance of payments deficit on current than most developing countries. Their external account("1) of the 75 other developing coun- public debt is also a good deal smaller, relative tries increased in 1975 from about $33,000 to their national income. The combined external million in 1974 to about $42,000 million. How- public debt of these countries, expressed as a ever, as indicated in the Bank's Annual Report percentage of gross national product (GNP) for 1976, there was evidence, during the latter was only 6% in 1975. At the end of 1975, their part of 1975, that the difficulties of 1974 and total disbursed debt was $12,101 million. The early 1975 were being mitigated by adjustments increase in net public borrowings was relatively initiated by the developing countries themselves, modest, both in 1974 ($1,556 million) and in as well as by an upturn in economic activity in 1975 ($2,042 million). The amounts were also some industrialized countries. Late in 1975 and modest compared with a balance of payments throughout 1976, the exports of these develop- deficit on current account which was more than ing countries increased markedly. This increase $7,000 million in 1974 and $8,000 million in contributed to a decline in their current account 1975. It is evident that, in these countries, other deficit from $42,000 million in 1975 to about forms of external finance, including borrowings $31,000 million in 1976. Net medium-term and by the private sector, are more important than long-term public borrowing by these countries public long-term borrowing. Only one country increased from $13,699 million in 1974 to in the region, Yugoslavia, shared in the wide- $20,076 million in 1975; debt outstanding and spread improvement in the current account posi- disbursed rose to $ 100,043 million from $82,332 tion of developing countries in 1976. million in 1974. Preliminary estimates of net borrowing in 1976 by these countries indicate that it was on the same order as in 1975. This, (10) Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Nigeria, in conjunction with the reduced current account Trinidad and Tobago, and Venezuela. ("1) Current account is defined as the balance between imports deficit, made possible a large addition to official and exports of merchandise and services and private re- foreign exchange reserves in 1976. In 1974 and ceipts of transfers from abroad. 1975,gnexchange reserves,along with ex Ina c , had (MCyprus, Greece, Malta, Portugal, Spain, Turkey, and 1975, reserves, along with external capital, had Yugoslavia. '26 External Public Debt Outstanding, Disbursed, of 75 NonoHl-Exporting Developing Countries, by Region, 1972-75 (US$ millions) Years Region 1972 1973 1974 1975 Africa, South of the Sahara 5,502 6,776 8,649 10,584 East Asia and Pacific 5,577 6,493 7,986 10,661 Latin America and the Caribbean 19,794 24,416 32,152 39,477 North Africa and Middle East 3,638 4,144 4,684 7,298 t South Asia 14,902 16,443 18,510 19,922 More advanced Mediterranean countries 7,373 8,502 10,351 12,101 Total-75 nonoil-exporting countries 56,786 66,774 82,332 100,043 In the developing countries of the Middle East After deteriorating sharply in 1974 and in 1975, and North Africa,t13) other than the oil-export- the current account position of many of the ing countries, outstanding public debt was countries of the region showed an improvement smaller-$7,298 million at the end of 1975- in 1976. In all three years, public borrowing and than that of the Mediterranean countries. Public grant aid from official sources were the main debt increased very little in the past years, up to sources of finance, except for the four countries and including 1974. But in 1975, an increase of mentioned previously. One of them, Zaire, en- $2,614 million, or 56%, brought the total to countered severe difficulties in servicing external $7,298 million. This was almost 25% of the debt in 1975 and 1976. The Government was combined national income of the five relatively able to alleviate them, however, by reaching poor countries of the region. Most of this debt agreement separately with official and private and borrowing was from official sources-83% creditors. of the debt outstanding at the end of 1975 and South Asia(15) resembles sub-Saharan Africa 87% of net borrowings during that year. Egypt in that a large proportion of external public debt was, by far, the largest borrower, in a net amount is owed to official creditors and that a high pro- of $1,963 million, or 69% of the net borrowing portion of new borrowing is from official lend- of the region. A large part, estimated at about ers. The countries of the region owed a total of three-quarters, of the current account deficit of $19,922 million at the end of 1975, of which these countries was financed in 1975 by public 96% was to official creditors. This amount was borrowings and grant aid from official sources. on the order of 17% of the regional GNP. This In 1976, the current account deficit increased regional figure does not reveal, however, the somewhat, and official sources continued to be a wide range among the countries-from 9% in major source of financing. Burma, which, over many years, avoided bor- The external borrowing and debt position of rowing abroad, to more than 50% in Pakistan, sub-Saharan African countries and those of which followed the opposite course. During South Asia have a number of characteristics in 1975, almost all net borrowing of $2,320 million common despite the diversity of the 32 countries was from official sources. Most of it was on in the African region.(14) Because most coun- highly concessional terms, either originally or tries in both regions have very low per capita as a result of successive rearrangements of the incomes, they have been able to borrow on con- service payments on earlier loans. Net borrow- cessionary terms from national and international ing from private sources was very small. The aid agencies. Although there are exceptions reasons seem to have been that, as in sub-Saharan among the countries of Africa south of the Africa, there was little lending by financial insti- Sahara, most countries in both regions have tutions, suppliers did not maintain even the rela- not been able to borrow large sums from private tively low levels of activity of previous years, lenders. The total public debt outstanding at the and the amortization of earlier lending con- end of 1975 of sub-Saharan countries was tinued. The year 1975 was not the first during $10,584 million. Two-thirds of this debt, or which this was the case, for borrowing from $7,028 million, was owed to official creditors. private sources seems to have been negative by Net borrowing was $2,313 million in that year, very small amounts in both 1972 and 1973. This 65% of it from official sources. The debt out- standing to private sources at the end of 1975 (1c) Egypt, Jordan, Morocco, Syria, and Tunisia. was $3,556 million. Of that amount, 75% was (")Benin, Botswana, Burundi, Cameroon, Central African owed by four countries-Ivory Coast, Sudan, Coast, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Niger, Rwanda, Senegal, Zaire, and Zambia. Of 1975 net public borrow- Sierra Leone, Somalia, Sudan, Swaziland, Tanzania, Togo, ing ($822 million) from private sources, these Uganda, Upper Volta, Zaire, and Zambia. four countries accounted for more than 90%. L Afghanistan, Bangladesh, Burma, India, Pakistan, and 27 Creditor Composition of External Public Debt of 75 Nonoil-Exporting Developing Countries 1974 1975 US$ millions % US$ millions % Debt outstanding (including undisbursed) Governments 52,421 43.5 57,620 40.9 international organizations 26,570 22.0 32,908 23.4 Financial markets 29,253 24.3 37.873 26.9 Suppliers and other private 12,362 10.3 12,376 8.8 Total 120,607 100.0 140,777 100.0 Commitments Governments 10,574 33.2 9,590 31.0 International organizations 5,857 18.4 7,179 23.2 Financial markets t2,772 40.1 11,757 38.0 Suppliers and other private 2,660 8.3 2,443 7.9 Total 31,863 100.0 30,969 100.0 Net disbursements Governments 3,669 26.8 6,705 33.4 International organizations 2,473 18.1 3,293 16.4 Financial markets 7,080 51.7 9,445 47.0 Suppliers and other private 478 3.5 633 3.2 Total 13,699 100.0 20,076 100.0 Note: Details may not add to totals becautse of rounding. situation. as in the case of African countries, re- debt, and 34% of the net borrowing of the coun- flects: (a) the stated policy of official lenders to tries in the region in 1975. In addition, the pri- direct development assistance increasingly to vate sector in Brazil (as in several other countries very poor countries; (b) the policies of the gov- in the region) obtained large amounts of external ernments in the region and; (c) the reservations finance without public guarantee, both in the of private lenders about lending to very poor form of loans, and, as in some other countries, cotuntries. In 1975, the current account position direct investment. Debt of the private sector, not of every country in the region deteriorated, a included in the statistics of external public debt situation which seems to have reversed itself in presented in this Annull Report, represented 1976. India's current account was in surplus in somewhat less than half the total external debt that year, and the deficit of almost all the other of Brazil. Net borrowing of the private sector countries was reduced. without public guarantee was about one-quarter The external public debt of the 1 8 countries of net long-term borrowing by Brazil in that in the Latin America and the Caribbean re- year. Borrowing by the private sector in other gion,"l'i excluding the oil-exporting countries, countries seems to have been a good deal less was $39,477 million at the end of 1975, or about in relation to public debt than in Brazil. Three 40% of the total for all countries other than the other countries, Mexico, Argentina, and Chile, oil-exporters. External public debt in relation to together accounted for 45% of the total public GNP for the region was about 14%. The rate of debt outstanding in the region. In 1975, the cur- increase of external public debt, which had been rent account deficit of the region rose by about considerably above that of other regions in re- $3,500 million, but it was reduced by about cent years, fell from 32% in 1974 to 23% in $5,200 million in 1976. and reserves, which de- 1975, or about the same rate as in 1975 for all clined in 1975, rose by more than $4,000 million countries which do not export oil. Net borrow- in 1976. ing was $7,720 million, an increase of 5977 mil- Countries other than Indonesia in the East lion, or 15%, higher than in 1974. Private Asia and Pacific region1 7) had outstanding ex- sources accounted for 62% of external public ternal debt of $10,661 million at the end of debt outstanding at the end of 1975 and 76% 1975, an increase of 34% over the end of 1974. of net borrowing during that year. Countries in Almost half the total, S5,227 million, was owed the region owed 61 % of all the external public by Korea, whose economy, the largest in the debt of the 75 developing countries to private region, has been growing very rapidly. The high creditors as of the end of 1975. The region ac- rate of economic growth in Korea has required counted for only 58% of net public borrowing imports of capital in very large amounts over a from private sources dutring 1975 because most other regions increased their borrowing from (11i) Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Guyana, private sources more rapidly. Brazil, which alone Honduras, Jamnaica, Mexico, Nicaragua, Panama, Para- accounted for almost 40% of the GNP of the guay, Peru, and Uruguay. region,accounted for almost940% of ithe ernP t(l7 Republic of China, Fiji, Republic of Korea, Malaysia, regzion, accounted for 29% of its external public Philippines, Singapore, and Thailand. 28 period of years. In 1975, net public external bor- disbursed, to 75 developing countries which do rowing by the countries of the region was $2,849 not export oil, were $32,908 million at the end million, of which Korea borrowed almost half. of 1975, an increase of 24% over 1974. Debt In addition, the private sector in Korea, like the owed to international organizations accounted private sector in other countries of the region, for 23% of total debt of these countries, but borrowed abroad without guarantee. The ex- only 17% of disbursed debt. New loans corn- ternal public debt of the region was about 14% mitted by international organizations during of total GNP. The ratio in Korea was about 1975 were $7,179 million, or an increase of twice as high, but Korean exports, which were 23% over 1974. Net disbursements were $3,293 large and growing rapidly, provided the re- million in 1975, an increase of 23%. Undis- sburces required to service the country's debt. bursed balances of international organizations at In both 1974 and 1975, the current account the end of 1975 were $15,450 million, and were deficit of the region was more than $5,000 mil- about 38% of total undisbursed balances of all lion. It was reduced to $2,700 million in 1976. lenders at the end of 1975. External borrowings in 1976 continued at levels Loans from financial markets include loans estimated to be no less than in 1975. As a result, from private banks, other private financial insti- official foreign exchange reserves rose by more tutions, and bonds. Debt outstanding to financial than $3,500 million. markets, including undisbursed loans, rose in * * * 1975 by 30%-as compared with an increase Total debt outstanding, including undisbursed of 58% the year before-to $37,873 million. balances, owed to governments by developing This represented 27% of the debt outstanding countries which do not export oil increased by to all creditors in 1975. Private banks accounted 10% in 1975, to reach $57,620 million as shown for 85% of the debt outstanding owed financial in the table on page 28. Loans from governments were 41% of the total debt outstanding from all markets. Disbursed debt owed to these lenders lenders. Commitments of governments were was $30,980 million, or 31% of total disbursed $9,590 million in 1975, a decline of about debt. Commitments from financial markets de- $1,000 million from the peak of the previous clined slightly to $11,757 million in 1975. How- year. Disbursements, net of amortization pay- ever, there was evidence of an increase in 1976 ments, increased by 83% to $6,705 million in and in early 1977. Net borrowings from finan- 1975. cial markets increased by $2,365 million, or Loans outstanding from international organi- 33%, to $9,445 million after having nearly zations, including portions which had not been doubled the year before. 29 Eastern Africa ~~~~Aorro~~~~~~~~~~~~~(USmilon.Fsayer. = X A t00it04200 i0Per capita (00) Numer f Opera00tions0 t0 0 fiscal 1975-7 00 Us In spite of vast land resources and generally Some countries, like Botswana, Zaire, and low population densities, the 17 nations of the Zambia, are endowed with rich mineral deposits Eastern Africa Region are among the poorest which can provide the resources for financing of the developing world. More than half these economic development; others, like Kenya, are countries,- with populations accounting for al- already beyond the beginnings of industrializa- most two-thirds of the Region's 142 million, tion. But much of the progress that could be en- have average per capita gross national products visaged three years ago has been retarded by the of below $200. While large portions of the land onset of various crises, with the result that, with are desert or savannah, and rainfed crops, as few exceptions, the real per capita income today well aascionally struck by is hardly better than it was in 1973. drought as in 1974 and 1975, the agricultural Failure of rains in the two previous years potential of the Region is enormous, given a brought much iuman distress to Somalia and total land area larger than the United States. a decline in crop production in Tanzania, north- However, traditional low-productivity farming eastern Kenya, and some adjoining areas of the predominates, internal distances are great, gov- savannah belt, necessitating additional imports ernment services and inftastructure facilities are of food that weigh heavily on the balance of pay- inadequate, and export 4arkets are remote. The ments. Simultaneously, the dramatic rise in pe- majority of the farming population, mostly troleum and other import prices in 1974 severely smallholders, live below the absolute poverty affected the resource position of most countries, level. but particularly those with a relatively open 30 economy, like Kenya. Subsequently, when in coffee (as mentioned previously), tea, ground- 1975, the price of copper plunged from a previ- nuts, tobacco, and cotton. This was offset, in ously high level, the two major copper exporters part, by a decline in the prices of sugar and (Zaire and Zambia) experienced a severe and maize, and a late recovery in sisal prices. How- prolonged liquidity crisis, ever, good weather in 1976 has done much to The process of adjustment to the new situa- bring agricultural production back to an upward tion brought about by the unfavorable terms of trend and the resulting improvement in export trade has been marked, in some cases, by aus- volume has helped to improve the balance of terity programs and a basic restructuring of in- payments position in several countries, although vestment. as in Kenya and Tanzania. Some in others, this improved position had to be programs have been accompanied by coura- achieved through further restrictions on the vol- geous measures to stimulate agricultural produc- ume of imports. tion and restrain real urban incomes. Some of The East African Community (EAC), com- the more ambitious targets to provide social in- posed of Kenya, Tanzania, and Uganda, and frastructure to the masses of the people had to based on the Treaty of 1967, was both directly be postponed in favor of more directly produc- and indirectly affected by the severe balance of tive activities. These measures have met with payments and financial pressures of recent years. some degree of success, but where the resource Directly, common market trade was impaired as shortfall was very large and short-term indebt- a result of restrictions in national imports and edness increased rapidly (as in Zaire), the re- foreign exchange. Indirectly, fiscal austerity ex- duced import capacity retarded the successful acerbated existing tensions and mutual suspi- ducovery importh caproducition re eds t sucesl cions over the distribution of benefits from the recovery in the production of goods and serv- Community Corporations, which had been re- ices. Also, new initiatives for production , par- inforced by widening differences of political ticularly in agriculture, depend, firstly, on a ilorced between therences of fi- proper administrative framework which, very philosophy between the Partner States. The fi- often, is in urgent need of strengthening. nancial problems of the Corporations seriously often, is in urgent need of strengthening. affected their ability to meet external debt obli- Countries less affected by the movements in gations and led to some delays in service pay- the terms of trade, or having benefited from in- ments. But since the agreement in May 1976 flationary movements in world commodity mar- between the Partner States on the sharing of debt kets (Mauritius and Swaziland) have continued service and payments procedures, debt service to show satisfactory rates of growth. Growth to the World Bank has been met regularly. rates have also been satisfactory in Sudan, where At the same time, the Treaty Review Com- major expansion in agricultural investment is mission (set up in 1975) failed to make agreed beginning to show results. And the economies recommendations and adjourned sine die in of some of the smaller countries, like Lesotho November 1976. This further embittered Com- and Malawi, have shown a resiliency character- munity relationships and accelerated the disrup- istic of a primarily agricultural thrust of devel- tion of the EAC Corporations. East African opment. Finally, countries of extreme poverty Airways was grounded, and the operations of such as Burundi, Ethiopia, and Rwanda have most of the other Corporations have, in effect, experienced lesser setbacks as they are less vul- been decentralized to the regions. The East Afri- nerable due to a slower pace of growth; in 1976- can Development Bank (EADB) is the only ma- 77, they benefited from the increase in the price jor EAC institution which has, so far, not been of coffee. As time goes by, and crises of various seriously affected in its organization and opera- magnitudes are overcome, the need for institu- tions in spite of the deteriorating EAC climate. tional improvements more and more clearly be- The World Bank has, over the years, not only comes the most pervasive factor of development made sizable investments in the EAC, but has in almost all the countries of the Region; institu- provided assistance for the orderly resolution of tion building and development of cadres to oper- the Community's problems. The Bank will con- at,e new administrative and service structures, tinue to try to help the Partner States move to- particularly in the field of agriculture, are the ward revised institutional arrangements. most urgent tasks facing governments. The combined resource gap of the 17 coun- World Bank Lending tiies of the Region quadrupled from 1973 to 1975 to about $1,000 million-if the copper Lending operations increased in total amount producers are excluded-but narrowed by about by about 14% over the average of the previous 8% in 1976. With the copper exporters included, three years, and reached $572 million in fiscal the resource gap approached $2,000 million in 1977. This was achieved through 39 loans and 1975 and declined to about $1,300 million in credits, compared with an average of 32 in the 1976. Thus, the past year brought some relief previous three years. Most of the increase took from the severe pressure on resources through place in lending for agriculture and rural devel- certain improvements in the terms of trade. opment, where the amount of lending increased While import prices continued to advance, by 133%, and the number of projects assisted though at a reduced pace, prices for the Region's reached a record of 16, or seven more than in products improved somewhat more in cases like any previous year. This has been the result 31 mainly of a deliberate effort in past years to pre- In fiscal 1977, these funds complemented as- pare more projects in this key sector. Due to the sistance by the Bank and IDA amounting to special need to support the restructuring pro- $339 million and by local resources of $274 mil- grams in Kenya and Tanzania, these countries lion. The largest co-financing source this year show a more than proportionate increase in total was the European Development Fund/European Bank assistance in fiscal 1977. Assistance in- Investment Bank which, with the resources pro- cluded a program credit of $15 million to Tan- vided under the Lom6 Convention, were able, zania, designed to help the country keep its for the first time, to provide significant amounts development program at previous levels, because of co-financing (about $79 million), mostly on shortages of inputs were hampering the manu- a grant basis. Further important sources of co- facturing industry as well as the development of financing were traditional contributors such as infrastructure. A program loan-of $30 million the African Development Bank/Fund ($33.9 -was made to Zambia to help alleviate import million), the Commonwealth Development Cor- shortages in the wake of stabilization measures poration (CDC) ($29.1 million), Kreditanstalt made necessary by the continued liquidity crisis fur Wiederaufbau (KfW) ($29 million), Arab caused by the failure of copper prices to rise Fund for Economic and Social Development appreciably. ($24.74 million), and the Swedish International Development Authority (SIDA) ($18.6 million), Project Co-financing and relatively new ones like the Arab Bank for Economic Development in Africa (BADEA) Project co-financing more than doubled from ($10 million) and the Saudi Fund ($8.5 million). fiscal 1976 to fiscal 1977, adding more than 50% Others included the United Kingdom, the Ku- to the total value of Bank and IDA lending. This wait Fund, the Islamic Development Bank, the was due to an increase in the number, size, and Abu Dhabi Fund, Canada, the Netherlands, and cost of projects in the context of rising costs of the United States, and export credit agencies. imported equipment, materials, and technical Major recipients of co-financing were Kenya assistance. As most countries in the Region have ($79 million for three projects), Tanzania ($70 limited creditworthiness for World Bank assist- million for three projects), and Sudan ($60 mil- ance and, thus, depend for the most part on lion for two projects). In addition, co-financing scarce IDA resources, co-financing on conces- complemented Bank assistance in two projects sional terms was critical for the execution of the in Malawi, Somalia, Zambia, and Zaire, and Bank's lending program in Eastern Africa. The one each in Ethiopia, Mauritius, Rwanda, and Bank's staff worked closely during the year with Swaziland. member countries and other contributors to ar- range co-financing. As a result, co-financing Agricultural Development funds committed during fiscal 1977 totaled $325 million for 20 projects, as compared with $148 In pursuance of the long-term objective of million for 13 projects in the previous fiscal year. increasing the productivity of the rural poor, Lending to Borrowers in Eastern Africa, by Sectors (US$ millions. Fiscal years.) Annual Annual average average 1964-68(1) 1969-73 1974 1975 1976 1977 Agriculture $ 5.3 $ 54.5 $120.9 $124.2 $ 93.4 $235.8 Education 9.7 23.4 - 65.0 64.1 37.3 Industry (including DFCs) - 15.2 41.5 115.0 69.5 69.5 Nonproject - 6.0 - 60.0 - 45.0 Population and nutrition - - 12.0 - - - Power 13.2 24.3 127.5 65.1 63.0 55.0 Technical assistance - - - - 11.5 - Telecommunications 3.6 9.5 21.4 48.0 - - Tourism - - - - - 17.0 Transportation 38.3 76.7 82.1 131.2 82.6 90.6 Urbanization - - 3.0 44.5 - - Water supply and sewerage 0.2 4.4 - 3.5 56.5 22.0 Total $70.3 $214.0 $408.4 $656.4 $440.6 $572.2 Of which: Bank $37.8 $107.2 $209.9 $344.4 $216.0(2) $311 7(1 IDA $32.5 $106.8 $198.5 $312.1 $224.6 $260.5 Details may not add to totals because of rounding. (Excludes $3.9 million in loans to Rhodesia, and $20 million to South Africa. (2) Includes $32.7 milion on Third Window terms. (S) Includes $97.1 million on Third Window terms. 32 A F7 V.'s -s7I2gY 7 " ~~~~~~~~~~~~~~~~ . ~~~~International Development Available for Commitment Association For the fiscal years ended June 30, 1977 and June 30, 1976 Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix F July I-June 30 1976/77 1975/76 Resources Provided Net loss (See Appendix B) ........................................................ $ (8,108) $ (6,387) Add-Certain translation adjustments as a result of currency depreciations and appreciations .............................................................. 362 867 Decrease in resources provided by operations ........................................... $ (7,746) $ (5,520) From Members: Subscriptions, unrestricted ................ ................................. $ 2,570 2,670 Supplementary resources ............. ....................... ...... 115,020 Adjustment of resources provided in prior fiscal years as a result of currency depreciations and appreciations ........ ................... ......... 52,636 (213,512) Increase (decrease) in resources provided by members .................. .......... .... 170,226 $ (210,842) Transfers from International Bank for Reconstruction and Development . . 90,675 104,180 Repayments of development credits ...................... .... 16,622 13,143 Grant participations in development credits ........................ 4,800 5,350 Cancellations and refundings of development credits .................. 2,799 7,547 Total increase (decrease) in resources provided... . .............................. $ 277,376 $ (86,142) Resources Used Development credit agreements approved ........ ............................... $1,307,500 $1,655,250 Decrease in Resources Available for Commitment .............................. $(1,030,124) $(1,741,392) Resources Available for Commitment Beginning of fiscal year .................................. 1,035,499 2,776,891 End of fiscal year . ............................................................. $ 5,375 $1,035,499 Composition of Resources Available for Commitment Unrestricted currencies ...... ........................................................ $ 446,634 $ 425,878 Investments ....................................................1.......... 65,354 212,469 Unrestricted receivables on account of subscriptions and supplementary resources ................................................ ........ 2,078,965 2,005,896 Receivables-Other ..................... ......................................... 665,967 576,630 Other assets .............................................................. 58,203 82,418 Subscriptions and supplementary resources not yet due .......... .............. .......... 871,640 2,007,305 Less-Undisbursed development credits (including development credits not yet effective) and accounts payable ...................... ............................ (4,281,388) (4,275,097) Totals ............................................................... $ 5,375 $1,035,499 147 Summary Statement of Development Credits June 30, 1977 and June 30, 1976 Expressed in United States dollars(in thousands)-see NTotes to Financial Statements, Appendix F June 30, 1977 Effective development credits held by Association Percent of total Development effective and Members in whose credits approved non-effective territories development Disbursed Undisbursed but not yet development credits have been made(') portion(') portion(5) Total effective(4) credits Afghanistan ................. . $ 36,127 $ 67,707 $ 103,834 $ 12,000 .99 Bangladesh . ........................... 467,924 249,500 717,424 72,000 6.74 Benin . ........................... 29,907 10,600 40,507 7,200 .41 Bolivia . .................. 54,806 9,738 64,544 - .55 Botswana . ................. 14,447 1,484 15,931 - .14 Burma . ................. 48,080 110,420 158,500 - 1.35 Burundi ............... ............. 5,955 15,026 20,981 10,000 .27 Cameroon . ................. 80,455 35,691 116,146 13,500 1.11 Central African Empire . .. ........ 10,381 2,996 13,377 - .11 Chad .................... 20,706 28,981 49,687 - .42 Chile .. ................. 21,565 - 21,565 - .18 China ................ ............. 14,950 - 14,950 - .13 Colombia . ........................... 22,132 - 22,132 - .19 Congo, People's Republic of the . ....... 18,411 3,483 21,894 500 .19 Costa Rica ............. ............... 5,164 - 5,164 - .04 Dominican Republic . ............ 10,819 11,263 22,082 - .19 Ecuador . .................. 31,994 6,405 38,399 - .33 Egypt, Arab Republic of . ........... 142,105 138,831 280,936 52,000 2.84 El Salvador . ............................ 18,514 3,003 21,517 6,000 .24 Ethiopia . .................. 128,481 163,889 292,370 57,000 2.98 Gambia, The ............................ 5,581 8,432 14,013 - .12 Ghana .. .......................... 65,293 42,772 108,065 - .92 Guinea ............................ 3,770 17,230 21,000 - .18 Guyana ................... ........ 5,377 8,268 13,645 - .12 Haiti ............................ 34,166 27,735 61,901 - .53 Honduras ............................ 31,493 17,947 49,440 5,000 .47 India ..... ........................ 3,443,594 1,122,312 4,565,906 257,000 41.20 Indonesia ............................ 447,333 125,705 573,038 - 4.89 Ivory Coast ............................ 4,841 2,659 7,500 - .06 Jordan. ............................ 41,230 24,594 65,824 6,000 .61 Kenya . ........................... 102,025 65,310 167,335 26,000 1.65 Korea ............................. 108,794 6,168 114,962 - .98 Lesotho ............................. 11,966 8,006 19,972 2,500 .19 Liberia. ............................ 8,260 8,740 17,000 7,000 .21 Madagascar ............................ 71,412 42,607 114,019 14,000 1.09 Malawi ............................ 78,027 24,758 102,785 15,000 1.01 Mali ............................ 59,630 36,343 95,973 26,000 1.04 Mauritania ..... .-........ , .. 21,583 14,772 36,355 3,500 .34 Mauritius ........ .................... 12,327 8,092 20,419 - .17 Morocco ............................ 37,770 14,669 52,439 - .45 Nepal ............................ 12,877 65,910 78,787 16,000 .81 Nicaragua ............................ 21,625 1,810 23,435 - .20 Niger ............................ 23,657 31,471 55,128 - .47 Nigeria ........................... . 37,526 1,329 38,855 - .33 Pakistan ............................ 597,331 179,000 776,331 15,000 6.76 Papua New Guinea ........................ 24,838 25,015 49,853 - .43 Paraguay ............................. 30,900 18,218 49,118 - .42 Philippines ............................ 27,868 4,348 32,216 - .28 Rwanda ............................ 28,861 17,008 45,869 14,000 .51 Senegal. ............................ 58,524 38,710 97,234 - .83 148 Appendix D International Development Association June 30, 1977 Effective development credits held by Association Percent of total Development effective and Members in whose credits approved non-effective territories development Disbursed Undisbursed but not yet development credits have been made(t) portion(2) portion)5) Total effective,4) credits Sierra Leone ............................ $ 13,078 $ 10,206 $ 23,284 $ - .20 Somalia . .................. 42,216 35,059 77,275 12,000 .76 Sri Lanka . ................. 49,562 35,985 85,547 28,200 .97 Sudan . .................. 83,493 105,668 189,161 25,000 1.83 S'waziland . ............... ........... 3,648 4,546 8,194 - .07 Syrian Arab Republic . ... ........ 25,553 22,786 48,339 - .41 Tanzania . .................. 120,591 126,021 246,612 7,200 2.17 Thailand . ................. 15,429 16,571 32,000 - .27 Togo .......... ......... 14,311 14,205 28,516 10,000 .33 Tunisia . ............ ..... 67,298 2,748 70,046 - .60 Turkey .. ......................... 174,850 18,965 193,815 - 1.66 Uganda ........................ ... 42,743 5,288 48,031 - .41 Upper Volta ......... ....... ......... 23,893 52,911 76,804 3,600 .69 Western Samoa . .......................... 2,503 1,897 4,400 - .04 Yemen Arab Republic . .. ........ 35,354 58,396 93,750 16,000 .94 Yemen, People's Democratic Republic of ..... 12,960 24,931 37,891 - .32 Zaire . . 66,159 109,846 176,005 18,000 1.66 Totals June 30, 1977 . .............. $7,435,043 $3,514,984 $10,950,027 $757,200 100.00 Totals June 30, 1976 $6...................... $6,158,986 $3,567,462 $ 9,726,448 $697,500 (1 All development credits are made to member governments or to the government of a territory of a member. (2) The disbursed portions at June 30, 1977 and June 30, 1976 include adjustments to reflect the devaluations of the United States dollar in 1972 and 1973 except for a credit for $9,000,000 which is expressed and is repayable in legal tender dollars. 3) These amousnts do not include $7,709,000 ($8,438,000-1976) of grant participations. Of the undisbursed balance at June 30,1977, the Associatioin has entered oInto irrevocable commitments to disburse $10,935,000 ($20,974,000-1976). (1) Development credit agreementstotaling$555,200,000 ($591,400,000-1976) have been signed, butthe credits do not become effective and disbursements thereunder do not start until the borrowers take certain actions and furnish certain documents to the Association, and agreements providing for credits totaling$202,000,000($106,100,000-1976) have been approved by the Association but have not been signed. Maturity Structure of Effective Development Credits Fiscal years ending June 30 Amounts 1978 ...................................................... $ 19,652 1979 ......................................................... 21,315 1980 .... .................................................. 27,197 1981 ........................... ............................. 33,358 1982 ....... .................. ............................ 43,674 1983-1987 ....................... ............................. 497,007 1988-1992 .................... __ ............................ 826,359 1993-1997 ................. ....... 1,344,688 1998-2002 ............................ 1,649,332 2003-2007 ............... ............ 1,649,333 2008-2012 .................... .................... _ ..... 1,643,859 2t1l3-2017 .................................................... 1,503,067 2018-2022 ....... ............................ .............. 1,232,960 2023-2027 ........................................ ............ 458,226 , Total ........... .... $10,950,027 149 Statement of Voting Power, and Subscriptions and Supplementary Resources June 30,1977 and June 30, 1976 Expressed in thousands of units of currency-see Notes to Financial Statements, Appendix F Amounts of subscriptions and Amounts of subscriptions supplementary and supplementary resources resources under through the third the fourth Total subscriptions and Voting power replenishment replenishment supplementary resources Expressed in Expressed Expressed Expressed United States in in in dollars of the current current current weight and fine- United United United Number Percent ness in effect on States States States Percent Members(,) of votes of total January 1, 1960 dollars dollars dotlars('l of total Part I Members Australia .40,550 1.50 $ 111,980 $ 135,087 $ 69,778 $ 204,865 1.91 Austria. 16,842 .62 34,560 41,691 32,387 74,078 .69 Belgium .32,052 1.19 77,700 93,733 76,946 170,679 1.59 Canada .105,286 3.90 304,530 367,369 264,325 631,694 5.89 Denmark .27,257 1.01 70,840 85,458 51,435 136,893 1.27 Finland .13,701 .51 22,448 27,080 23,321 50,401 .47 France .112,817 4.17 362,032 436,737 222,098 658,835 6.14 Germany, Federal Republicof. 174,725 6.47 476,560 574,897 520,155 1,095,052 10.20 Iceand .5,931 .22 550 664 606 1,270 .01 Ireland .8,080 .30 7,030 8,480 5,506 13,986 .13 Italy 69,910 2.59 193,240 233,115 115,735 348,850 3.25 Japan .136,039 5.03 285,320 344,196 477,687 821,883 7.66 Kuwait .14,031 .52 22,920 27,650 27,248 54,898 .51 Luxembourg .6,427 .24 2,550 3,076 2,302 5,378 .05 Netherlands .52,693 1.95 141,080 170,192 134,252 304,444 2.84 New Zealand 8,410 .31 - - 14,630 14,630 .14 Norway. 22,463 .83 49,320 59,497 51,271 110,768 1.03 South Africa .10,725 .40 20,080 24,223 7,015 31,238 .29 Sweden .72,225 2.67 206,225 248,779 173,602 422,381 3.94 United Kingdom. 213,176 7.89 694,300 837,568 371,620 1,209,188 11.27 United States .626,654 23.19 2,072,290 2,499,904 1,500,000 3,999,904 37.28 Totals. 1,769,994 65.49 $5,155,555 $6,219,396 $4,141,919 $10,361,315 96.56 Part 11 Members Afghanistan . .7,771 .29 $ 1,049 $ 1,265 $ 45 $ 1,310 .01 Algeria. 14,335 .53 4,186 5,050 135 5,185 .05 Argentina. 14,677 .54 19,720 23,789 - 23,789 .22 Bangladesh . . 17,274 .64 5,589 6,742 101 6,843 .06 Benin . .600 .02 500 603 - 603 .01 Bolivia . .2,473 .09 1,101 1,328 - 1,328 .01 Botswana 1,859 .07 166 200 - 200 (3) Brazil 46,526 1.72 19,720 23,789 443 24,232 .22 Burma . . 9,996 .37 2,099 2,532 49 2,581 .02 Burundi . .7,246 .27 790 953 24 977 .01 Cambodia . . 7,826 .29 1,060 1,279 6 1,285 .01 Cameroon . . 7,771 .29 1,049 1,265 32 1,297 .01 Central African Empire 6,685 .25 519 627 16 643 .01 Chad . .2,093 .08 519 627 - 627 .01 Chile . .1,206 .04 3,530 4,258 - 4,258 .04 China . .71,247 2.64 31,436 37,923 1,122 39,045 .36 Colombia 13,289 .49 3,717 4,483 153 4,636 .04 Congo, People's Republic of the 6,685 .25 519 627 16 643 .01 Costa Rica . .6,023 .22 208 251 7 258 (3) Cyprus . .7,246 .27 790 953 24 977 .01 150 Appendix E International Development Association June 30, 1977 and June 30, 1976 Expressed in thousands of units of currency-see Notes to Financial Statements, Appendix F Amounts of subscriptions and Amounts of subscriptions supplementary and supplementary resources resources under through the third the fourth Total subscriptions and Voting power replenishment replenishment supplementary resources Expressed in Expressed Expressed Expressed United States in in in dollars of the current current current weight and fine- United United United Number Percent ness in effect on States States States Percent MembersO) of votes of total January 1,1960 dollars dollars dollars(2) oF total Part 11 Members (continued) Dominican Republic. 6,483 .24 $ 435 $ 525 $ 60 $ 585 .01 Ecuador .2,200 .08 676 815 - 815 .01 Egypt, Arab Republic of 16,620 .62 5,277 6,366 188 6,554 .06 El Salvador .6,244 .23 331 399 11 410 (3) Equatorial Guinea .1,967 .07 332 401 - 401 (3) Ethiopia .6,687 .25 539 650 19 669 .01 Fij i .2,130 .08 581 701 - 701 .01 Gabon .2,093 .08 519 627 - 627 .01 Gambia, The .6,182 .23 277 334 7 341 (3) Ghana .10,711 .40 2,452 2,958 66 3,024 .03 Greece .11,059 .41 2,618 3,158 76 3,234 .03 Grenada .5,782 .21 94 113 2 115 (3) Guatemala .6,474 .24 415 501 15 516 .01 Guinea .7,771 .29 1,049 1,265 36 1,301 .01 Guinea-Bissau .528 .02 140 168 - 168 (3) Guyana .7,361 .27 842 1,015 25 1,040 .01 Haiti .7,246 .27 790 953 28 981 .01 Honduras .6,242 .23 311 376 13 389 (3) India .93,187 3.45 41,919 50,569 1,313 51,882 .48 Indonesia .29,692 1.10 11,531 13,911 412 14,323 .13 Iran .15,455 .57 4,717 5,690 161 5,851 .05 Iraq .7,246 .27 790 953 28 981 .01 Israel .9,386 .35 1,745 2,106 503 2,609 .02 Ivory Coast .7,771 .29 1,049 1,265 32 1,297 .01 Jordan .6,242 .23 311 376 11 387 (t) Kenya. 9,240 .34 1,745 2,106 51 2,157 .02 Korea .8,350 .31 1,309 1,579 39 1,618 .02 Lao People's Dem. Rep 6,685 .25 519 627 3 630 .01 Lebanon .590 .02 450 543 - 543 .01 Lesotho .5,950 .22 166 200 5 205 (3) Liberia .2,273 .08 790 953 - 953 .01 Libya .7,771 .29 1,049 1,265 37 1,302 .01 Madagascar .702 .03 1,010 1,218 - 1,218 .01 Malawi .7,246 .27 790 953 25 978 .01 Malaysia .11,059 .41 2,618 3,158 87 3,245 .03 Mali .7,479 .28 904 1,090 28 1,118 .01 ,Mauritania .6,685 .25 519 627 17 644 .01 Mauritius .7,480 .28 924 1,114 27 1,141 .01 Mexico .2,248 .08 8,740 10,543 - 10,543 .10 Morocco .13,271 .49 3,667 4,424 123 4,547 .04 ,Nepal .6,685 .25 519 627 16 643 .01 Nicaragua .6,242 .23 311 376 11 387 (3) Niger .6,685 .25 519 627 16 643 .01 (continued) 151 Statement of Voting Power, Appendix E International Development and Subscriptions Association and Supplementary Resources(continued) June 30, 1977 asd June 30, 1976 Expressed in thousands of units of currency-see Notes to Financial Statements, Appendix F Amounts of subscriptions and Amounts of subscriptions supplementary and supplementary resources resources under through the third the fourth Total subscriptions and Voting power replenishment replenishment supplementary resources Expressed in Expressed Expressed Expressed United States in in in dollars of the current current current weight and fine- United United United Number Percent ness in effect on States States States Percent Members(') of votes of total January 1, 1960 dollars dollars doliars(Q) of total Part II Members (continued) Nigeria. 4,057 .15 $ 3,491 $ 4,211 $ - $ 4,211 .04 Oman .6,244 .23 331 399 11 410 (3) Pakistan .27,531 1.02 10,582 12,765 376 13,141 .12 Panama .5,657 .21 21 25 1 26 (3) Papua New Guinea .7,476 .28 894 1,077 28 1,105 .01 Paraguay .6,242 .23 311 376 11 387 (3) Peru .854 .03 1,770 2,135 - 2,135 .02 Philippines. 16,583 .61 5,296 6,388 273 6,661 .06 Rwanda. ........ .. 7,246 .27 790 953 25 978 .01 Saudi Arabia ........ .. 1,240 .05 3,700 4,463 - 4,463 .04 Senegal .9,240 .34 1,745 2,106 53 2,159 .02 Sierra Leone .7,246 .27 790 953 20 973 .01 Somalia .7,246 .27 790 953 28 981 .01 Spain .29,746 1.10 12,590 15,188 11,215 26,403 .25 Sri Lanka .12,166 .45 3,148 3,797 100 3,897 .04 Sudan .7,771 .29 1,049 1,265 32 1,297 .01 Swaziland .6,299 .23 332 401 9 410 (3) Syrian Arab Republic .7,651 .28 987 1,190 34 1,224 .01 Tanzania .2,904 .11 1,745 2,106 - 2,106 .02 Thailand .12,166 .45 3,148 3,797 110 3,907 .04 Togo .7,246 .27 790 953 24 977 .01 Trinidad and Tobago 770 .03 1,350 1,629 - 1,629 .02 Tunisia .2,793 .10 1,569 1,893 - 1,893 .02 Turkey .18,229 .67 6,086 7,341 263 7,604 .07 Uganda.9,240 ,34 1,745 2,106 51 2,157 .02 Upper Volta .6,685 .25 519 627 16 643 .01 Viet Nam .8,889 .33 1,569 1,893 38 1,931 .02 Western Samoa .5,782 .21 94 113 2 115 (3) Yemen Arab Republic 6,533 .24 446 539 16 555 .01 Yemen, People's Dem. Rep. of. 8,175 .30 1,226 1,479 44 1,523 .01 Yugoslavia .15,575 .58 8,080 9,747 4,122 13,869 .13 Zaire .3,823 .14 3,138 3,785 - 3,785 .04 Zambia .1,038 .04 2,690 3,245 - 3,245 .03 Totals .932,571 34.51 $ 287,368 $ 346,667 $ 22,566 $ 369,233 3.44 GRANDTOTALSJune30,1977 2,702,565 100.00 $5,442,923 $6,566,063 $4,164,485 $10,730,548 100.00 GRAND TOTALS Ju ne 30,1976. 2,643,641 100.00 $5,442,783 $6,565,895 $3,996,154 $10,562,049 (I) See Appendix F-Note A, for an explanation of the two categories of members. (a) Includes$871,679,000 equivalent in current United States dollars which is not yet due and is payable by the respective memberson various dates through fiscal year 1979 (See Appendix F-Note E). (3) Less than .005 percent. 152 Notes to Financial Statements Appendix F International Development Association June 30, 1977 and June 30, 1976 Summary of Significant Accounting and Association in their own currencies. The Articles of Agreement of Related Policies the Association and subsequent replenishment agreements provide that the currency of any Part II member paid in by it may not be Translation of Currencies used by the Association for projects financed by the Association The financial statements are expressed in terms of the current and located outside the territories of the member except by agree- United States dollar solely for the purpose of summarizing the ment between the member and the Association. The amounts of Association's financial position and the results of its operations for $60,795,000 ($61,942,000-1976) under the heading Due from t,e convenience of its members and other interested parties. Banks, $161,557,000 ($156,912,000-1976) included under the heading Receivable on Account of Subscriptions and Supplemen- The Association is an international organization which conducts its tary Resources and $43,968,000 ($47,636,000-1976) included in operations in the currencies of all of its members and Switzerland. Translation Adjustments on Subscriptions and Supplementary Re- The Association's policy is to translate its assets and liabilities in sources under the heading Other Assets were subject to such currencies other than United States dollars at market rates of restrictions. exchangetothe United Statesdollar atthe end of each fiscal quarter. Subscriptions and supplementary resources provided by initial Note B-Investments subscriptions and bythefirstthree replenishmentsof the Associa- The market value of investment securities was $165,425,000 tion's resources which are expressed in terms of the United States ($212,493,000-1976) compared with a cost or amortized cost of dollarofthe weightand fineness in effectonJanuary 1, 1960(the $165,354,000($212,469,000-1976)and face value of $165,834,000 1960 dollar), are translated by the Association into current United ($214,555,000-1976), including investments nottraded in the mar- States dollars at the rate of $1.20635 per 1960 dollar. Subscriptions ket which were valued at their cost of $41,032,000 ($27,055,000- and supplementary resources provided by the fourth replenishment, 1976). The item Investments included securities purchased under which are expressed and payable in the members' currencies, are agreements to resell amounting to $5,300,000 (nil-1976). translated (1) at market rates of exchange at the end of each quarter for amounts receivable and for amounts received and not Note C-Maintenance of Value yet disbursed, and (2) at market rates of exchange on the dates of Article IV, Section 2 of the Association's Articles of Agreement pro- disbursement in respect of those amounts which have been dis- vides for the maintenance of the value, as of the time of subscrip- bursed. Translation adjustments relating to subscriptions and sup- tion, of the Association's currency holdings or demand obligations plementary resources are accounted for as described in Note C; substituted therefor representing ninety percent of each member's all other translation adjustments are included in the determination initial subscription, only so long as and to the extent that such of net income. Income and expensesaretranslated at an average of currency has not been initially disbursed or exchanged for the the market rates of exchange in effect during each quarter. currency of another member. This Section requires: (1) the amember to make additional payments to the Association in the Investments event that the par value of its currency is reduced or the foreign Investment securities are recorded at cost or amortized cost. Gains exchange value of its currency has, in the opinion of the Associa- or losses on sales of investments, measured by the difference be- tion, depreciated to a significant extent in its territories and (2) the tween average cost and proceeds of sales, are recorded as an Association to reimburse the member in the event that the par element of income from investments. value of its currency is increased or the foreign exchange value of its currency has, in the opinion of the Association, appreciated to a Development Credits significant extent in its territories. The principal amounts disbursed and outstanding and the accrued The provisions of Article IV, Section 2 have by agreement been service charges are denominated in United States dollars of the extended to cover additional subscriptions and supplementary weight and fineness in effect on January 1,1960. The equivalent is resources of the Association through the third replenishment but repayable by the borrowers in currencies which the Association determines to be freely convertible or freely exchangeable by the are not appicable to those of the fourth replenishment. Association for currencies of other members of the Association, On June 19, 1972, the Executive Directors resolved that for all exceptthatsuch principal amountswould be reducedif(1)thereisa members that established central rates for their respective cur- uniform proportionate reduction in the par values of the currencies rencies, pending establishment of new par values for their cur- of all membersof the International Monetary Fund or(2)the Associ- rencies, maintenance of value obligations be settled on the basis of ation so decides because of a substantial reduction in the value of those central rates. It was further decided that with respect to any one or more major currencies of members. member currency functioning under a system under which the market rate is not confined within announced intervention margins, Administrative Expenses maintenance of value obligations would be determined on the basis Administrative expenses of the Association are paid by the Inter- of market rates in effect on the respective dates of disbursement of national Bank for Reconstruction and Development(the Bank). The such currency, but only for the amounts disbursed. Association reimbursesthe Bankforsuch expenses by paymentof a Where market rates of exchange are not related to par values or management fee representing its share of the administrative central rates as in the cases of a majority of the members, and there expenses incurred by the Bank. are differences between market rates of exchange and the rates at which undisbursed subscriptions and supplementary resources of Note A-Restricted Currencies members through the third replenishment of the Association's The membership of the Association is divided into two categories: resources have been paid or are payable, such differences are in- (1) Part I members, which pay all subscriptions and supplementary cluded in Translation Adjustments on Subscriptions and Supple- resources provided to the Association in convertible currencies mentary Resources under the heading Other Assets. The amount which may be freely used or exchanged by the Association in its thus established, $96,510,000 ($127,665,000-1976), consists of operations; (2) Part 11 members, which pay ten percent of their notional receivables $101,276,000 ($131,879,000-1976) and no- initial subscriptions in freely convertible currencies and the remain- tional payables $4,766,000 ($4,214,000-1976). Maintenance of ing ninety percent of their initial subscriptions and all additional value obligations in respect of such undisbursed amounts will be subscriptions and any supplementary resources provided to the determined upon their disbursement. (cuntinued) 1 53 Notes to Financial Statements (continued) Appendix F International Development Association June 30, 1977 and June 30, 1976 Note C (continued) Note D (continued) In view of the proposed amendments to the Articles of Agreement fiscal year 1973. The loans carry no interest and are each repayable of the International Monetary Fund (the Fund) as described in infortyannual instalmentscommencingonJulyl, 1979, inthecase Note E, the timing of the establishment and settlement of mainte- of the first loan, and November 8, 1983 in the case of the second nance of value obligations is uncertain, except that, as mentioned loan.Thefirstteninstalmentsof eachloanwillbe 1%oftherespec- above, maintenance of value obligations for applicable currencies tive principal amounts and the remaining thirty instalments witl disbursed are being established at the date of disbursement. be 3% of such principal amounts. Note D-Borrowings from Swiss Confederation Note E-SubscriptionsandSupplementary Resources The Association has entered into agreements to borrow a total of Subscriptions and supplementary resources have been translate'i SwF 182 million (US equivalent $73,957,000) from the Swiss Con- as set forth in Translation of Currencies under the Summary of federation. The first loan for SwF 52 million was made in fiscal Significant Accounting and Related Policies. At June 30, 1977 and year 1967 and the second loan for SwF 130 million was made in 1976 these were as follows: 1977 1976 Expressed in United States Dollars (in thousands) Initial subscriptions and first three replenishments: Subscriptions (United States dollars of 1960 $1,064,919-1977, $1,064,779-1976) . .................. ...... ................. $1,284,664 $1,284,496 Supplementary resources (United States dollars of 1960 $4,378,004-1977, $4,378,004-1976) ....... . ............................. 5,281,399 5,281,399 $6,566,063 6,565,895 Less-Portion for which payment is not yet due ............ . ............. - 239 $6,566,063 6,565,656 Fourth Replenishment: Subscriptions ...... ...... ....................... ....... ....... $ 33,693 32,969 Supplementary resources ......................... ................... .... 4,130,792 3,963,185 $4,164,485 3,996,154 Less-Portion for which payment is not yet due .................. ........... 871,679 2,008,662 3,292,806 1,987,492 Totals $9,858,869 $8,553,148 The aggregate of $871,679,000 not yet due, will be due as follows: Fiscal years Amounts (in thousands) 1978 $380,855 1979 490,824 Total $871,679 On April 30, 1976, the Board of Governors of the Fund approved the operations of the Association. Since the value of the SDR in proposed amendments to the Fund's Articles of Agreement which terms of current dollars may vary from day to day and, therefore, will become effective upon their acceptance by 60% of its members may differ from the value of the 1960 dollar in terms of current representing 80% of the voting power. Under these amendments, dollars, as valued by the Association, such a substitution might currencies will no longer have par values, gold will be abolished as result in the amounts of the Association's subscriptions and supple.- a common denominator of the monetary system and all calcula- mentary resources expressed in current dollars varying from tions for purposes of the Fund's Articles will be made on the basis amounts shown in these financial statements. If such a substitu- of theSpecial Drawing Right(SDR).TheUnited Stateshasaccepted tion were to have taken place at June 30, 1977, the Association's these amendments which are not yet effective. Since July 1, 1974, subscriptions and supplementary resources expressed in current the value of an SDR expressed in United States dollars has been dollars would have been $20,763,000 less than the $9,858,869,00U based upon the weighted relative values of a number of major shown in the Statement of Condition. currencies, including the United States dollar. This method of valuation will not be changed by these amendments. The Associa- Note F-Transfers from International Bank for tion has under consideration the effect of these amendments on the Reconstruction and Development valuation of the Association's subscriptions and supplementary The International Bank for Reconstruction and Development has resources and the rights and obligations of members with respect authorized transfers by way of grants to the Association totaling thereto. If the SDR were to be substituted for the 1960 dollar in the $1,125,000,000 ($1,025,000,000-1976) from net income of the Association's Articles of Agreement, it is not expected that this Bank for the fiscal years ended June 30, 1964 through June 30, would have a material effect on the financial position or results of 1976. Of this amount, $25,850,000 ($16,525,000-1976) may be (continued) 154 Notes to Financial Statements (concIuded) Appendix F International Development Association June 30, 1977 and June 30. 1976 Note F (continued) used by the Association or had been disbursed for grants for agri- equivalent, payable in their respective currencies. cultural research and for the control of onchocerciasis. During the periods covered bythese financial statements $175,000($1,980,000 The above-mentioned subscriptions and contributions do not be- -1976) previously allocated for such grants has reverted to the comepayableunlessmembers(includingatleastl2PartI members Association for its general purposes. whose subscriptions and contributions aggregate not less than $6,000,000,000 equivalent, determined on the basis of the exchange Note G-General rates at March 14, 1977) shall each have given the Association, on On June 16, 1977, the Board of Governors adopted a resolution or before September 30, 1977, or such later date as the Executive authorizing the Association to accept additional resources from its Directors may determine, formal notification that they will make member governments as a fifth replenishment of its resources. both the subscription and contribution authorized for them in Under the resolution the Association is authorized to accept the accordance with the terms of the resolution. The notifications may aggregate of $7,637,855,000 equivalent(computed at the March 14 provide that payment of the second and/or third instalments of the 1977 International Monetary Fund representative rates of exchange) subscription and contribution of any member is subject to appro- from 21 Part I members, 4 Part 11 members, and one non-member priate legislative action. Also, the resolution provides that unless (United Arab Emirates) payable in the countries' respective cur- unqualified notifications are received covering at least 80% of the rencies. Payments are to be made in three equal instalments be- second and third instalments respectively, the Association cannot ginning on November 8, 1977 unless the dates are postponed for enter into new unqualified commitments to be drawn on the limited periods as provided in the resolution. The resolution further respective instalment. provides that the members have certain options in determining the Pending the effectiveness of the fifth replenishment, a number of amounts and timing of their payments. These resources would be Penmeng havendicaof the th woulen into prof divided into amounts for subscriptions carrying voting rights and governments have idicated that they would be wiling to provide contributions not carrying voting rights. commitment authority to the Association by making advance con- tributions on the condition that contributing governments collec- In connection with the replenishment, arrangements have been tively committhemselvesto make advance contributions of at least made to permit Part 11 members to maintain their relative voting the equivalent of $1,200,000,000. At June 30, 1977 a number of power and forthat purposethey have been authorized to make sub- governments had made such commitments, but the required scriptions carrying voting rights in the aggregate of $4,112,000 amount of $1,200,000,000 had not been reached. 155 Report of Financial Statements Independent Accountants Covered by the Foregoing Report 1801 K STREET, N.W. WASHINGTON, D.C. 20006 July 29, 1977 To INTERNATIONAL DEVELOPMENT ASSOCIATION WASHINGTON, D.C. In ouropinion, the accompanyingfinancial statements(Appendices Statement of Condition ............... Appendix A (page 144) A through F) present fairly, in terms of United States currency, the financial position of International Development Association at June Statement of Income ........ Appendix B (page 146) 30,1977 and 1976, the results of its operations and the changes in its Statement of Transfers financial position for the years then ended, in conformity with gen- from International Bank for erally accepted accounting principles consistently applied. Our Reconstruction and Development ........ Appendix B(page 146) examinations of these statements were made in accordance with generally accepted auditing standards and accordingly included Statement of Changes in Resources such testsofthe accounting records and such otherauditing proce- Available for Commitment ............. Appendix C (page 147) dures as we considered necessary in the circumstances. Summary Statement of Development Credits .................. Appendix D (page 148) Statement of Voting Power, PRICE WATERHOUSE & CO. and Subscriptions and Supplementary Resources .Appendix E (page 150) Notes to Financial Statements .Appendix F (page 153) 156 Statement of Development Credits Appendix G International Development Approved during Fiscal Year 1977 Association July 1, 1976-June 30, 1977 (US dollars) Date of Service Principal Purpose and borrower approval Maturities charge amount Afghanistan Education II: Agricultural Education ............................ December 23, 1976 1987/2026 %% $ 6,000,000 Agriculture: Agricultural Credit fl-Agricultural Development Bank of Afghanistan (AgBank) ............................................ June 2, 1977 1987/2027 3/4% 12,000,000 Bangladesh Nonproject: Program Credit V-Imports... ........................... December 28, 1976 1987/2026 3/4% 50,000,000 Agriculture: Muhuri Irrigation ...................................... June 16, 1977 1987/2027 %% 21,000,000 Agriculture: Irrigation-Shallow Tubewelis ......................... June 16, 1977 1987/2027 3/4% 16,000,000 Agriculture: Extension and Research... ............................. June 28, 1977 1988/2027 3/4% 10,000,000 Nonproject: Program Credit V (amendment) ........................... June 30, 1977 1987/2026 3/4% 25,000,000 Benin, People's Republic of Technical Assistance: Societe Nationale pour la Production Agricole (SONAGRI) and Centre d'Action pour le Developpement Rural (CARDER). May 26, 1977 1987/2027 34% 1,700,000 Transportation: Feeder Roads ........... . ........................ May 26, 1977 1987/2027 3/4% 5,500,000 Burma Transportation: Ports Il -Port of Rangoon Rehabilitation ...... ...... December 21, 1976 1987/2026 34 % 10,000,000 Industry: Mining-Tin and Tungsten Expansion ..................... March 8, 1977 1987/2026 34% 16,000,000 Burundi Education: Primary and Secondary Education ................ ........ February 8, 1977 1987/2026 34% 10,000,000 Cameroon Transportation: Douala Port It ...................................... September 7,1976 1986/2026 3/4% 10,000,000 Technical Assistance ....... December 21, 1976 1987/2026 S /4% 4,500,000 Agriculture: The Plaine des M'Bo Rural Development ......................... December 21, 1976 1987/2026 34% 2,000,000 Agriculture: Rural Development Fund............ . .................. June 30, 1977 1987/2027 3/4% 7,000,000 Chad Agriculture: Sategui-Deressia Irrigation (supplement) .................. August 10, 1976 1984/2023 3/4% 8,000,000 Agriculture:Rural Projects Fund (RPF) ............................... November30, 1976 1987/2026 3/4% 12,000,000 Congo, People's Republic of the Education: Vocational Education (supplement) ....................... December 22, 1976 1981/2020 3/4% o500,000 Egypt, Arab Republic of Education: Technical training .............................. ...... February 22, 1977 1987/2027 3/4% 25,000,000 Agriculture: Nile Delta Drainage 11 .................................. May 31, 1977 1987/2027 34% 27,000,000 El Salvador Urban Development: Sites and Services 11 ............................ June 23, 1977 1987/2027 34% 6,000,000 Ethiopia Agriculture: Amibara Irrigation (revised) .................... ........ May 10, 1977 1987/2027 34% 25,000,000 Transportation: Roads VII ........... .............................. May 10, 1977 1987/2026 3/4% 32,000,000 Ghana Power III . ................................................ March 22, 1977 1987/2027 34% 9,000,000 Haiti Agriculture: Rural Development ................................... December 28, 1976 1987/2026 34% 10,000,000 Honduras Transportation: Port 111-Puerto Castilla and San Lorenzo .............. April 5, 1977 1987/2027 3/4% 5,000,000 India Agriculture: Kerala Agricultural Development ......................... February 17, 1977 1987/2026 34% 30,000,000 Agriculture: Orissa Agricultural Development ...... . ................. February 22, 1977 1987/2027 3/4% 20,000,000 Power: Singrauli Thermal Power ........................... ........ March 1, 1977 1987/2026 Y%% 150,000,000 Urban Development: Madras ...... ...... ..... March 8, 1977 1987/2027 34% 24,000,000 Agriculture: West Bengal Agricultural Extension and Research .......... March 22, 1977 1987/2027 34% 12,000,000 Agriculture: Gujarat Fisheries ....... ........... .... March 31, 1977 1987/2027 3/4% 4,000,000 Agriculture: Madhya Pradesh Agricultural Extension and Research. I May 12, 1977 1987/2027 3/4% 10,000,000 Agriculture: Agricultural Refinance and Development Corporation (ARDC) 11 .............................. ............ May 24, 1977 1988/2027 34% 200,000,000 Agriculture: Periyar-Vaigai Irrigation-Tamil Nadu Command Area ...... June 2, 1977 1987/2027 3/4% 23,000,000 Agriculture: Assam Agricultural Development ......................... June 28, 1977 1988/2027 3/4% 8,000,000 Kenya Agriculture: Integrated Agricultural Development ..................... July 1,1976 1986/2026 34% 10,000,000 Transportation: Rural Access Roads ................................. July 1, 1976 1986/2026 3/4% 4,000,000 Agriculture: Agricultural Credit Ill-Agricultural Finance Corporation (AFC) ...................................... ........ March 29, 1977 1987/2027 34% 20,000,000 Agriculture: Bura Irrigation Settlement ......... .................... June 7,1977 1987/2027 34% 6,000,000 Lesotho Development Finance Companies: Lesotho National Development Corporation (LNDC) and Basotho Enterprise Development Corporation (BEDCO) ............................................. April 21, 1977 1987/2026 34% 2,500,000 Liberia Agriculture: Bong County Agricultural Development ............ ...... April 19, 1977 1987/2026 34% 7,000,000 (continued) Statement of Development Credits Appendix G International Development Approved during Fiscal Year 1977(continued) Association July 1, 1976-June 30, 1977 (Us dollars) Date of Service Principal Purpose and borrower approval Maturities charge amount Madagascar Education 11: Primary and Secondary Education ........ ............... November 2, 1976 1987/2026 3/% $ 14,000,000 Malawi Power IIl: Nkula Falls Hydroelectric ............................. March 29, 1977 1987/2026 34% 8,000,000 Water Supply and Sewerage: Blantyre Water Supply ............. ..... May 12, 1977 1987/2027 3/4% 7,000,000 Mali Agriculture: Mali-Sud Agricultural Project ............ . ............. December 14, 1976 1986/2026 3/4% 15,500,000 Transportation: Railways III ....................................... May 17, 1977 1987/2027 3/4% 10,500,000 Mauritania Technical Assistance: Development Programs ............. ....... November 30, 1976 1987/2026 34% 2,700,000 Technical Assistance: Societ6 Nationale pour le Developpernent Rural (SONADER)......... ................................ March 31, 1977 1987/2027 34% 3,500,000 Nepal Agriculture: Irrigation Il-Bhairawa-Lumbini Groundwater ............ July 6, 1976 1986/2026 4% 9,000,000 Technical Assistance: Project Preparation ............................ September 7, 1976 1986/2026 34 % 3,000,000 Water Supply and Sewerage Il: Kathmandu Valley and Pokhara ........ April 26, 1977 1987/2027 3/4% 8,000,000 Water Supply and Sewerage (supplement) ............................ April 26, 1977 1984/2023 34% 4,000,000 Development Finance Companies: Nepal Industrial Development Corporation (NIDC) ......................... May 3, 1977 1987/2027 34% 4,000,000 Pakistan Education Ill: Primary and Secondary Schooling-Vocational ..... January 25, 1977 1987/2026 3/4% 15,000,000 Transportation: Railways X .................. ...................... February 22, 1977 1987/2026 34 % 25,000,000 Agriculture: Flood Damage Restoration ........... .................... February 22, 1977 1987/2026 34% 40,000,000 Papua New Guinea Education: Secondary and Technical Teacher Training ........ ........ October 19, 1976 1986/2026 34% 4,000,000 Transportation: Highlands Road Improvement II ................... January 25, 1977 1987/2026 34% 19,000,000 Paraguay Education Ill: Rural Education ................... ........ December 7, 1976 1987/2026 34% 4,000,000 Rwanda Agriculture: Cinchona Project ....................................... July 15, 1976 1986/2026 34% 1,800,000 Development Finance Companies: Rwanda Development Bank (BRD) ... July 15, 1976 1986/2026 34 % 4,000,000 Agriculture: Mixed Farming and Rural Development.. ................. December 14, 1976 1987/2026 3/4% 14,000,000 Somalia Development Finance Companies: Somali Development Bank (SDB).... . April 19, 1977 1987/2026 34 % 5,000,000 Transportation: Highways III .......................... ............ April 19, 1977 1987/2026 3/4% 7,000,000 Sri Lanka Agriculture: Tank Irrigation Modernization ........................... November 30, 1976 1986/2026 34% 5,000,000 Agriculture: Mahaweli Ganga Development II ......... . .............. April 21, 1977 1987/2026 34% 19,000,000 Water Supply and Sewerage: Water Supply-Colombo and adjacent towns ................................................ May 10, 1977 1987/2027 34% 9,200,000 Sudan Agriculture: Savannah Development ................... .......... May 31, 1977 1987/2027 34% 17,000,000 Transportation: Railways IV ............................ ....... June 28, 1977 1987/2027 34 % 8,000,000 Tanzania Agriculture: Fisheries Development .................................. July 1, 1976 1986/2026 34% 9,000,000 Agriculture: Tobacco Processing ..................................... September 7, 1976 1987/2026 34 % 8,000,000 Nonproject: Program Credit ...................... ....... March 15, 1977 1987/2027 3/4% 15,000,000 Agriculture: Tabora Rural Development ...................... ....... April 26, 1977 1987/2027 34% 7,200,000 Togo Transportation: Highways III ....................................... March 31, 1977 1987/2026 34% 10,000,000 Tunisia Population (supplement) . .................... ... August 10, 1976 1981/2020 34% 4,800,000 Upper Volta Transportation: Highways III ............................... July 1, 1976 1986/2026 3/4% 20,000,000 Agriculture: West Volta Agricultural Development .... ....... May 3, 1977 1987/2027 3/4 % 3,600,000 Yemen Arab Republic Agriculture: Integrated Livestock Development and Processing .......... October 19, 1976 1987/2026 1/4% 5,000,000 Water Supply and Sewerage: Sana'a .., ......... _I.December 21, 1976 1987/2026 3/4% 10,000,000 Transportation: Hodeidah Port Development and Mocha Port Rehabilitation ................................................ May 19, 1977 1987/2027 34% 6,000,000 Zaire Agriculture: Cotton Rehabilitation ................... __ ............ September 21, 1976 1986/2026 1/4% 8,000,000 Agriculture: Livestock II-Ituri Livestock Development ................ April 12, 1977 1987/2026 34% 8,000,000 Development Finance Companies IV: Societ6 Financiere de D6veloppement(SOFIDE) ......................................... May 12, 1977 1987/2026 34% 10,000,000 TOTAL . . . .1,307,500,000 158 Bank/IDA Appendices Page 1 Approved Bank and IDA Cumulative Lending Operations, ' by Major Purpose and Region, June 30, 1977 ................... 160 2 Approved Bank and IDA Cumulative Lending Operations, by Country, June 30, 1977 ................................... 162 3 Administrative Budgets of the Bank and IDA ................... 164 4 Governors and Alternates of the Bank and IDA ................. 165 5 Executive Directors and Alternates of the Bank and IDA ......... 167 6 Officers and Department Directors of the Bank and IDA ......... 168 7 World Bank Offices ....................................... 169 159 Approved Bank and IDA Cumulative Lending Operations, by Major Purpose and Region, June 30, 1977 (US$ millions) Bank loans to borrowers by region(') Europe, Middle Latin East East, and America Asia Eastern Western North and the and South Purpose(*> Africa Africa Africa Caribbean Pacific Asia Total AGRICULTURE AND RURAL DEVELOPMENT Agricultural credit ......................$ 5.0 $ 3.5 $ 434.5 $ 226.4 $ 96.0 $ - $ 765.4 Area development . ............ 72.5 171.0 130.0 523.1 369.0 197.0 1,462.6 Fisheries ..... ...................... - - 19.5 16.2 45.8 14.0 95.5 Irrigation . ................ 78.2 17.5 865.0 456.3 941.5 149.0 2,507.5 Livestock .. ......................... 5.3 32.6 122.0 678.0 48.0 10.0 895.9 Crop processing, storage . ........ - - 124.9 167.8 45.8 - 338.5 Perennial crops . ............. 57.4 261.4 10.0 12.0 50.0 - 390.8 Research and extension . ......... - - 12.7 43.0 100.0 25.0 180.7 Forestry . ... ............ 48.5 - 25.0 - 8.5 - 82.0 Other agriculture . ............ 5.6 - 2.3 22.7 4.3 26.3 61.2 Subtotal . ............_............... . 486.0 1,745.9 2,145.5 1,708.9 421.3 6,780.1 DEVELOPMENT FINANCE COMPANIES ..... 113.5 58.8 1,542.0 751.0 826.0 721.2 4,012.5 EDUCATION . ........................... 97.8 131.6 375.4 292.9 326.2 - 1,223.9 ELECTRIC POWER ..................... 673.0 328.0 1,924.2 3,755.0 1,432.0 342.7 8,454.9 INDUSTRY Fertilizer and chemicals . ...... - - 120.3 246.0 185.0 231.0 782.3 Iron and steel . ............. - 188.5 564.0 - 189.0 941.5 Small industry.. - 60.0 131.0 - 30.0 - 221.0 Mining, other extractive . .......... 137.5 131.0 73.3 169.8 - 204.5 716.1 Pulp and paper ... ................... - - 110.0 20.0 - 4.2 134.2 Textiles . .............. ............. 38.0 - 102.0 - - - 140.0 Other industry . ......................... - 0.6 461.4 12.5 243.4 - 717.9 Subtotal . ........................... 175.5 191.6 1,186.5 1,012.3 458.4 628.7 3,653.0 NONPROJECT ........................... 160.0 80.0 1,353.1(3) 86.5 175.0 - 1,854.6 POPULATION . .......................... - - 16.5 35.8 67.5 - 119.8 TECHNICAL ASSISTANCE . ........ - - 4.3 13.3 13.0 - 30.6 TELECOMMUNICATIONS . .......... 101.6 54.3 213.8 315.7 141.3 107.5 934.2 TOURISM . ............... ............ 17.0 23.3 96.6 85.0 25.0 - 246.9 TRANSPORTATION Airlines and airports ..................... 49.0 3.0 16.2 99.5 - 5.6 173.3 Highways ............................ 216.5 291.1 889.1 1,785.6 1,149.1 39.9 4,371.3 Pipelines ............................ 20.0 - 197.9 23.3 - 116.2 357.4 Ports and shipping 8...................... 4.9 172.3 630.3 204.6 394.8 109.8 1,596.7 Railways ............................ 367.2 103.5 594.5 856.5 517.7 555.1 2,994.5 Other transportation ..................... 28.0 25.0 12.0 30.0 - - 95.0 Subtotal ............................ 765.6 594.9 2,340.0 2,999.5 2,061.6 826.6 9,588.2 URBAN DEVELOPMENT ................... 28.0 44.0 53.0 51.2 166.5 25.0 367.7 WATER SUPPLY AND SEWERAGE .......... 72.6 23.5 540.4 506.5 201.1 - 1,344.1 TOTAL ...............$............. 2,477.1 $2,016.0 $11,391.7 $12,050.2 $7,602.5 $3,073.0 $38,610.5 (1) Except for the total shown in footnote 4, no account is taken of cancellations and refundings subsequent to original commitment; amounts of can- cellations and refundings are shown by country and purpose in the Statements of Loans and of Development Credits,which are available on request. Bank loans of $550 million to IFC are excluded. Due to rounding,tatals may not agree with those shown in Appendix 2. (2) Operations have been classified by the major purpose they finance. Many projects include activity in more than one sector or subsector. (3) Includes $497 million in European reconstruction loans made before 1952. (4) Cancellations, terminations, and refundings total $1,378.9 million. This figure includes $46 million of loansand $176 million of credits made to Pakistan in earlier years for development projects in its former eastern wing, now Bangladesh. The loans and credits were reactivated, in revised form, as commitments to Bangladesh. 160 Appendix 1 IDA credits to borrowers by region(') Eu rope, Middle L-tin East East, and America Asia Eastern Western North and the and South Total Africa Africa Africa Caribbean Pacific Asia Total Bank and IDA $ 34.6 $ 26.4 $ 64.2 $ 18.5 $ 15.5 $ 665.1 $ 824.3 $ 1,589.7 227.7 146.0 27.0 10.0 6.5 175.0 592.2 2,054.8 15.0 1.3 7.1 - 10.0 4.0 37,4 132.9 159.9 58.0 262.7 18.5 121.2 534.8 1,155.1 3,662.6 125.9 40.5 49.5 67.5 10.6 90.6 384.6 1,280.5 24.3 - - - - 141.7 166.0 504.5 71.3 71.1 15.0 - 121.8 30.0 309.2 700.0 - - - - - 52.0 52.0 232.7 16.8 - - - - 28.0 44.8 126.8 - - - - 7.5 71.0 78.5 139.7 675.5 343.3 425.5 114.5 293.1 1,792.2 3,644.1 10,424.2 78.0 3.0 81.0 6.2 25.0 108.5 301.7 4,314.2 234.0 103.7 107.8 33.6 95.4 73.0 647.5 1,871.4 43.8 26.1 50.9 66.3 111.0 651.0 949.1 9,404.0 - - 21.4 - 35.0 367.0 423.4 1,205.7 -_- - - - - - 941.5 4.0 - 2.3 - 16.5 9.5 32.3 253.3 2.5 - - - 16.0 18.5 734.6 2.0 - - - - - 2.0 136.2 - - - - - - 140.0 - - 18.7 - - 18.7 736.6 8.5 - 42.4 - 51.5 392.5 494.9 4,147.9 15.0 - 35.0 4.0 - 1,956.6 2,010.6 3,865.2 12.0 - 14.6 - 13.2 36.2 76.0 195.8 11.5 12.4 - - 15.0 16.5 55.4 86.0 37.4 14.1 30.0 - 12.8 375.7 470.0 1,404.2 - 4.0 16.0 - 16.0 4.2 40.2 287.1 9.0 5.0 2.5 - - - 16.5 189.8 443.8 311.8 86.5 113.3 107.4 107.9 1,170.7 5,542.0 - - - - - - - 357.4 63.2 24.0 9.2 5.0 19.9 178.3 299.6 1,896.3 38.0 45.4 38.5 8.0 40.0 594.2 764.1 3,758.6 - - - - - - - 95.0 554.0 386.2 136.7 126.3 167.3 880.4 2,250.9 11,839.1 19.5 8.0 9.3 32.0 - 59.0 127.8 495.5 32.6 13.9 73.1 3.0 4.4 202.4 329.4 1,673.5 $1,721.8 $914.7 $1,022.3 $385.9 $804.7 $6,548.2 $11,397.6 $50,008.1(4) 161 Approved Bank and IDA Cumulative Lending Operations, by Country, June 30, 1977 (US dollars) Bank loans IDA credits TOTAL Country NumberM' Amount NumberM' Amount Number(') Amount Afghanlistani................ - $- 14 $ 118,500,000 14 $ 118,500,000 Algeria .................. 16 631,000,000 - - 16 631,000,000 Argentina ..... ........... 12 852,300,000 - - 12 852,300,000 Australia ................. 7 417,730,000 - - 7 417,730,000 Austria .................. 9 106,336,429 - - 9 106,336,429 Bahamas .1............... 10,000,000 - - 1 10,000,000 Barngladesh(2) .............. 1 46,189,500 40 777,094,965 41 823,284,485 Belgium.................. 4 76,000,000 - - 4 76,000,000 Benin, People's Republic of ......... - - 7 46,800,000 7 46,800,000 Bolivia .................. 10 198,250,000 10 60,300,000 20 258,550,000 Botswana................. 6 77,800,000 6 15,750,000 12 93,550,000 Brazil................... 71 3,239,690,000 - - 71 3,239,690,000 Burma .................. 3 33,350,000 9 158,500,000 12 191,850,000 Burundi.................. 1 4,800,000 8 30,980,000 9 35,780,000 Cameroon................. 14 157,200,000 11 126,950,000 25 284,150,000 Caribbean Region ............. 1 20,000,000 - - 1 20,000,000 Central African Empire ..........3 12,400,000 3 12,400,000 Chad................... - - 9 47,200,000 9 47,200,000 Chile................... 23 361,200,000 - 19,000,000 23 380,200,000 China, Republic of ............. 14 329,400,000 4 15,300,000 18 344,700,000 Colombia ... ............. 67 1,577,280,000 - 19,500,000 67 1,596,780,000 Congo, People's Republic of the ....... 3 76,000,000 6 22,630,000 9 98,630,000 Costa Rica................. 20 247,100,000 - 5,500,000 20 252,600,000 Cyprus .................. 12 93,100,000 - - 12 93,100,000 Denmark ............... 3 85,000,000 - - 3 85,000,000 Dominican Republic ............ 5 64,000,000 3 22,000,000 8 86,000,000 East African Communityt3).......... 10 244,800,000 - - 10 244,800,000 Ecuador.................. 20 230,100,000 5 36,900,000 25 267,000,000 Egypt, Arab Republic of........... 14 591,000,000 12 333,075,000 26 924,075,000 El Salvador ................ 15 160,685,000 2 25,600,000 17 186,285,000 Equatorial Guinea ............. - - 1 2,000,000 1 2,000,000 Ethiopia .... ............. 12 108,600,000 23 344,100,000 35 452,700,000 Fiji.................... 5 35,200,000 - - 5 35,200,000 Finland...... -.......... 18 316,779,464 - - 18 316,779,464 France .................. 1 250,000,000 - - 1 250,000,000 Gabon .................. 6(4) 69,300,000 - - 6 69,300,000 Gambia, The ....... ........ - - 5 13,900,000 5 13,900,000 Ghana .................. 9(5) 187,000,000 11 105,500,000 20 292,500,000 Greece. ................. 14 375,800,000 - - 14 375,800,000 Guatemala................. 10 188,500,000 - - 10 188,500,000 Guinea .................. 3 75,200,000 2 21,000,000 5 96,200,000 Guyana.................. 7 41,450,000 2 13,500,000 9 54,950,000 Haiti ................... 1 2,600,000 6 61,850,000 7 64,450,000 Honduras ................. 16 177,450,000 4 53,200,000 20 230,650,000 Iceland. ................ 10 47,014,000 - - 10 47,014,000 India... ................ 51 2,015,610,000 88 4,606,700,000 139 6,622,310,000 Indonesia................. 28 1,337,000,000 38 561,800,000 66 1,898,800,000 Iran ................... 33 1,210,700,000 - - 33 1,210,700,000 Iraq ................6 156,200,000 - - 6 156,200,000 Ireland .................. 8 152,500,000 - - 8 152,500,006 Israel ..... ............. 11 284,500,000 - - 11 284,500,000 Italy ................... 8 399,628,000 - - 8 399,628,000 Ivory Coast ................ 210)(6) 327,400,000 1 7,500,000 22 334,900,000 Jamaica.................. 16 165,000,000 - - 16 165,000,000 Japan .................. 31 862,900,000 - - 31 862,900,000 Jordan .................. - - 14 71,300,000 14 71,300,000 Kenya .................. 26 453,300,000 15 188,300,000 41 641,600,000 Korea, Republic of............. 33 1,568,500,000 6 110,800,000 39 1,679,300,000 Lebanion., ............... 3 66,600,000 - - 3 66,600,000 Lesotho.................. - - 5 21,700,000 5 21,700,000 Liberia .................. 14 77,450,000 4 24,000,000 18 101,450,000 Luxembourg................ 1 12,000,000 - - 1 12,000,000 Madagascar ................ 5 32,850,000 8 125,150,000 13 158,000,000 Malawi .................. 2 26,200,000 15 112,190,000 17 138,390,000 Malaysia ................. 37 864,600,000 - - 37 864,600,000 162 Appendix 2 Bank loans IDA credits TOTAL Country NumberM" Amount Number(') Amount NumberM') Amount Mali ........................... . (6) $ - 12 $ 116,700,000 12 $ 116,700,000 l alta . ........................... 1 7,500,000 - - 1 7,500,000 lauritania ............. ................. 1 66,000,000 9 35,950,000 10 101,950,000 Mauritius ........................ ... 6 36,600,000 4 20,200,000 10 56,800,000 Mexico ........................... 48 2,792,100,000 - - 48 2,792,100,000 Morocco ..................... ...... 29 799,800,000 3 50,800,000 32 850,600,000 Ilepal ........................... - - 13 95,700,000 13 95,700,000 Netherlands ........................... 8 244,000,000 - - 8 244,000,000 New Zealand ........................... 6 126,800,000 - - 6 126,800,000 Nicaragua ........................... 21 150,750,000 2 23,000,000 23 173,750,000 Niger ............... ............. - - 8 51,604,000 8 51,604,000 Nigeria ........................... 29 822,400,000 2 35,500,000 31 857,900,000 Norway ... ............... --- .... 6 145,000,000 - - 6 145,000,000 Oman ........................... 4 24,950,000 - - 4 24,950,000 Pakistan75 ............................ 38 883,860,500 31 793,713,035 69 1,677,573,535 Panama ..................... ...... 15 212,190,000 - - 15 212,190,000 Papua New Guinea ........... ... 6 67,500,000 6 48,200,000 12 115,700,000 Paraguay ............................ 12 90,850,000 6 45,500,000 18 136,350,000 Peru ........................ ... 33 573,125,000 - - 33 573,125,000 Philippines ............................ 46 1,234,400,000 1 32,200,000 47 1,266,600,000 Portugal ........................... 8 167,500,000 - - 8 167,500,000 Rhodesia .................... ........ (8) 86,950,000 - - 5 86,950,000 Romania ......... ........... 13 626,300,000 - - 13 626,300,000 Rwanda ......... ............ ........... - 9 59,700,000 9 59,700,000 Sahelian Region(9) .......... .............. - - 1 14,000,000 1 14,000,000 Senegal ...... ..........1........ . 13(6) 79,150,000 14 91,550,000 27 170,700,000 Sierra Leone ........................... 4 18,700,000 3 23,050,000 7 41,750,000 Singapore .. 14 181,300,000 - - 14 181,300,000 Somalia .................... - - 13 88,100,000 13 88,100,000 South Africa ........................... 11 241,800,000 - - 11 241,800,000 Spain .......................... . 12 478,700,000 - - 12 478,700,000 Sri Lanka .. ......... ............ 8 93,910,000 10 116,600,000 18 210,510,000 Sudan ...... ... ......... 8 166,000,000 13 218,450,000 21 384,450,000 Swaziland .................... 6 26,450,000 2 7,800,000 8 34,250,000 Syrian Arab Republic .. 7 299,100,000 3 47,300,000 10 346,400,000 Tanzania .... ....... ...... . 13 212,200,000 26 252,200,000 39 464,400,000 Thailand ....... ............. .... 39 994,900,000 3 32,000,000 42 1,026,900,000 Togo ............ ............... 1(5) 60,000,000 5 37,900,000 6 97,900,000 Trinidad and Tobago ...................... 12 104,800,000 - - 12 104,800,000 Tunisia ......... ............... 29 412,850,000 5 74,600,000 34 487,450,000 Turkey ....... .................. 35 1,289,900,000 10 178,500,000 45 1,468,400,000 Uganda ........................... 1 8,400,000 7 44,300,000 8 52,700,000 Upper Volta ....................... ... _ (6) - 12 78,200,000 12 78,200,000 Uruguay ........ ....... 13 207,200,000 - - 13 207,200,000 Venezuela .................. 13 383,300,000 - - 13 383,300,000 Western Samoa ...... ............... - 1 4,400,000 1 4,400,000 Yemen Arab Republic ..................... - - 13 109,750,000 13 109,750,000 Yemen, People's Democratic Republic of . - - 7 38,360,000 7 38,360,000 Yugoslavia ...... 44 1,624,100,000 - - 44 1,624,100,000 Zaire .................... 6 220,000,000 15 192,500,000 21 412,500,000 Zambia ............. .............. 21(8) 530,250,000 - - 21 530,250,000 TOTAL .. . 1,453 $38,609,727,893 666 $11,396,797,000 2,119 $50,006,524,893 (1) Joint Bank/IDA operations are counted only once, as Bank operations. When more than one loan is made for a single project, they are counted only once. (2) Includes $175,826,965 in IDA amount and 19 IDA credits which replace commitments originally made to Pakistan. Also includes $46,189,500 in Bank amount and I Bank loan which replace commitments originally made to Pakistan. (3) Jointly guaranteed by Kenya, Tanzania, and Uganda. (4) One of these loans, of $35 million, is jointly guaranteed by Congo (People's Republic of the), France, and Gabon. (5) One loan of $60 million, counted as one operation against Togo, is shared in amounts of $3.5 million each by Ghana, Ivory Coast, and Togo, plus $49.5 million to Ciments de l'Afrique de l'Ouest (CIMAO), which is jointly guaranteed by the three countries. (0) One loan for $7.5 million is shared by Ivory Coast, Mali, Senegal, and Upper Volta, but is counted against Ivory Coast. (7) Excludes$175,826,965 in IDA amount and 19 IDA credits which were replaced bycommitments made to Bangladesh. Also excludes $46,189,500 in Bank amount and 1 Bank loan which were replaced by commitments made to Bangladesh. (>n Two of these loans, totaling $87 million, have been assigned in equal shares to Rhodesia and Zambia but are counted only once, against Rhodesia. 09) One credit is shared by the following countries: Chad-$2 million; Mali-$2.5 million; Mauritania-$2.5 million; Niger-$2 million; Senegal-$3 million; Upper Volta-$2 million. The amounts are not included in each country's total. 163 Administrative Budgets Appendix 3 of the Bank and IDA For the fiscal year ending June 30, 1978 Actual expenses Budget 1977 1978 (Thousands of US dollars) BY ORGANIZATION UNIT Board of Governors .................................... 1,993 1,281 Development Committee ............................... 279(') 445(0) Executive Directors .................................... 6,442 6,965 Executive Offices ..................................... 987 1,124 Regional Offices ..................................... 99,090 115,591 Central Proiects Staff .................................. 25,907 30,937 Cooperative Programs-FAO, Unesco, WHO, and UNIDO .. 5,611 6,897 Development Policy Staff .... . ...................... 20,706 22,575 Financial Staff ...................................... 14,134 16,151 Operations Evaluation Staff ............... ............. 1,813 2,096 Legal, ICSID, and Secretary's ........................... 5,391 6,059 External Relations.... . ............................... 5,015 5,323 Economic Development Institute ........................ 5,596 6,521 Administration, Organization, Personnel Management ..... 23,556 26,006 European and Tokyo Offices ............................ 2,381 2,539 Grants for consultants to member countries .............. 309 178 Consultative Group on International Agricultural Research . . 558 635 Consultative Group on Food Production and Investment. 163(2) 247(2l Reimbursable Technical Assistance ...................... 3,178 4,159 Contingency allowance . ................................ - 2,160 TOTAL ....................................... 223,109 257,889 Less: Reimbursements ................................. -8,354 -9,735 I FC service and support fee ....................... -1,657 -2,158 TOTAL IBRD/IDA 1.................................... 3,098 245,996 BY EXPENSE CATEGORY Personal services ..................................... 145,267 166,450 Operational travel ........ ............................ 25,004 27,749 Representation ...................................... 595 657 Consultants ...................................... 14,328(3) 17,743(3) Contractual services .................................. 6,342 7,216 Overhead expenses: Other travel ...................................... 9,142 10,710 Office occupancy .................................... 10,339 12,025 Communications ..... ........................ 4,384 4,691 Other expenses ...................................... 7,708 8,488 Contingency ..... ................................. - 2,160 TOTAL .......... ............................ 223,109 257,889 Less: Reimbursements ................................. -8,354 -9,735 IFC service and support fee ............. ......... -1,657 -2,158(4) TOTAL IBRD/IDA ....... ........................... 213,098 245,996 Of which: IBRD ......................................O 143,074 159,518 IDA ........... ............... ......... 70,024 86,478 Note:The Administrative Budgetsforthe fiscal yearending June30, 1978, were approved bythe Executive Directors in accordance with the By-Laws of the Bank and IDA. For purposes of conmparison, the adminis- trative expenses incurred during the fiscal year ended June 30, 1977, are also shown. (') This figure represents the Bank's share (approximately 50%) of the cost of the Committee. (2) This figure represents the Bank's share (one-third) of the cost of the Secretariat. (3) The figures shown include the costs of the Cooperative Programs. (4) lnfiscal 1978, general assistance rendered by the Bank to FC will be paid for by a service and support fee, which has been established for the year at $2,158,000. 164 Governors and Alternates Appendix 4 of the Bank and IDA June 30, 1977 Member Governor Alternate Afghanistan ..... Said Abdul Illah ................... Zir Gul AIgeria ..... Mohammed Seddik Benyahia ......... Rachid Hassam Argentina ..... Jose Alfredo Martinez de Hoz ......... Adolfo C. Diz Australia ..... Phillip Lynch ................... J. C. Ingram Austria ..... Hannes Androsch ................... Walter Neudijrfer Bahamas( ...... Arthur D. Hanna ................... Reginald L. Wood iahrain(l) .... ' . . Ibrahim Abdul Karim ........ i....... Isa Abdullah Burshaid Bangladesh ..... M. N. Huda .................. . S. A. Khair(2) Barbados() ..... J. M. G. M. Adams ......... ....... Stephen E. Emtage Belgiu m ..m ................ . Gaston Geens . ................... Cecil de Strycker Benin. ............... . . Franc,ois Dossou .................... Abou Baba-Moussa Bolivia Carlos Calvo .......... Manuel Mercado Montero Botswana Q. K. J. Masire .......... Baledzi Gaolathe Brazil ............... Mario Henrique Simonsen .Paulo H. Pereira Lira Burma ....... ..................... U Than Sein ................... ... U Myo Myint Burundi ..... ...... ............... Dominique Shiramanga ............. Jean Ndimurukundo Cambodia ...... ............. ..... (vacant) .............. ..... (vacant) Cameroon ...... . Youssouffa Daouda ............ Amadou Bello Canada . Donald S. Macdonald ............ Michel Dupuy Central African Empire . Jean Paul Mokodopo .. .. _.... Joseph Moutou-Mondziaou Chad .............................. Ahmed Kerim Togoi ................. Blayo Ngartando Chile, ....................... ... Sergio de Castro Spikula ... ......... Sergio Undurraga Saavedra China. ..... Walter H. Fei ................ Chun-Heng Tu Colombia .... ................. Abd6n Espinosa Valderrama . German Botero de los Rios Comoros(') ................. , Mikidache Abdou Rahim(2. Ali Nassor Congo, People's Republic of the . Frangois Bita .Daniel Obela Costa Rica .......................... Porfirio Morera Batres............... Bernal Jimenez Cyprus ... Andreas C. Patsalides .A. C. Afxentiou Denmark .K. B. Andersen .Wilhelm Ulrichsen Dominican Republilc ............. .... Fer nando Periche Vidal .Luis M. Guerrero G6mez Ecuador. Santiago Sevilla Larrea .............. Alfonso Arcos V. Egypt, Arab Republic of .A. M. Kaissouni ..................... Hamed El-Sayeh El Salvador .Rigoberto Antonio Martinez Renderos. . Roberto Chico Duarte Equatorial Guinea ................... Ondo Mene Avang.................. (vacant) Ethiopia .Teferra Wolde-Semait .Kebede Temesgen Fiji ..... ...... .... ........ C. A. Stinson .... ............. .... Savenaca Siwatibau Finland . ........ . ..... Esko Rekola .. .......... -........ Osmo Kalliala France ............. . .. Bernard Clappier ...... ............. Marcel Th6ron Gabon ........ Michel Anchouey .................... J. FIlix Mamalepot Gambia, The ................. . Mohamadu Cadi Cham(2) ... ..... T. G. G. Senghore Germany, Federal Republic of ........ Hans Apel ....... ......... Marie Schlei Ghana .......I.. ... . 1. K. Acheampong ............... K. Anane-Binfoh Greece ... . . ....... Panayiotis Papaligouras ..... .. Evangelos Devletoglou Grenada ..... Eric M. Gairy. Jos Maria Chaves Guatemala ..... Ramiro Ponce Monroy .Jorge Lamport Rodil Guinea ..... Momory Camara .Saikou Barry Guinea-Bissau .................. ... Victor Freire Monteiro .............. Jose Lima Barber Guyana ..... F. E. Hope .Harold E. Wilkinson Haiti Emmanuel Bros ....... .... Antonio Andre Honduras ... Porfirio Zavala Sandoval .... . (vacant) I lceland ..... ... Olafur Johannesson .................. Matthias A. Mathiesen India ..... H. M. Patel ..................... Manmohan Singh Indonesia ..... Rachmat Saleh .................... Julianto Moeliodihardjo Iran ..... Hushang Ansary .................... Jahangir Amuzegar Iraq .. ................. ... Fawzi El-Kaissi .................... (vacant) Ireland ....... ....... ..... George Colley(2'. M. N. Murphy Israel .......... .. .. Arnon Gafny ............. Amiram Sivan Italy Paolo Baffi .Ferdinando Ventriglia Ivory Coast Henri Konan Bedi. Kouame N'Dri Kpatchibo Jamaica(') David H. Coore .Richard Fletcher Japan .. ..... ............ Hideo Boh. Teiichiro Morinaga Jordan .......... .... . Hanna Odeh ..... Hashim A. Dabbas Kenya .. .. ..... Mwai Kibaki .... . Leonard O. Kibinge Korea, Republic of .................. Yong Hwan Kim ...................Sung Whan Kim Kuwait ............. ....... Abdul Rahman Salim Al-Ateeqy ....... Abdlatif Y. Al-Hamad Lao People's Democratic Republic ... . Bousbong Souvannavong . . Pheng Uplavan (continued) (1) Member of the Bank only. (2) Appointment effective after June 30, 1977. 165 Governors and Alternates Appendix 4 of the Bank and IDA (continued) June 30, 1977 Member Governor Alternate Lebanon ................ (vacant) .................... Farid Solh Lesotho ................ R. Sekhonyana ......... .I .... A. M. Monyake Liberia ................ James T. Phillips, Jr ................. D. Franklin Neal Libya ................ Mohammad Zarrough Ragab .......... Omar M. Mehanni Luxembourg ................ Jacques F. Poos .................... Raymond Kirsch Madagascar ...... Rakotovao Razakaboana .Rajaona Andriamananjara Malawi ...... D. T. Matenje .Alfred A. Upindi Malaysia ...... Razaleigh Hamzah .Abdullah bin Ayub Mali . ..... Sekou Sangar .Tiecoura Kone Mauritania ...... Ibrahima A. Ba .(vacant) Mauritius ...... Rabindrah Ghurburrun .Bramduth Ghoorah Mexico ...... Julio Rodolfo Moctezuma .David Ibarra Morocco ...... Abdelkader Benslimane .Mustapha Faris Nepal ...... Bhekh B. Thapa .Narakant Adhikary Netherlands . ..... W. F. Duisenberg .J. P. Pronk New Zealand ...... N. V. Lough. C. H. Terry Nicaragua ...... Guillermo Sevilla-Sacasa. Juan Jose Martinez L. Niger ...... Abderrahmane Alfidja .Mahaman Annou Nigeria . ..... J. J. Oluleye .Musa Bello Norway ...... Per Kleppe .Hailvard Bakke Oman ............................. Qais A. Zawawi ................. Sherif Lotfy Pakistan ... Abdul Hafeez Pirzada ................ A. G. N. Kazi Panama ... Nicolas Ardito Barletta ............... Miguel A. Sanchiz Papua New Guinea ........... Julius Chan .................... M. Morauta Paraguay.............. C6sar Romeo Acosta ................. Augusto Colman V. Peru ............ Alcibiades Saenz Barsallo(2) ......... Manuel Augusto Blacker Miller Philippines ........... Cesar E. A. Virata ................... Placido Mapa, Jr. Portugal(') ........... Henrique Carlos Medina Carreira ...... Antonio Carlos Palmeiro Ribeiro Qatar(') ........... Abdul Aziz Al-Thani ................. Madhat Abdul Latif Masud Romania0) ............ Florea Dumitrescu ................... Mihai Diamandopol Rwanda ............ Denis Ntirugirimbabazi . .... J. D. Munyarukiko Saudi Arabia ........... Ahmed Zaki Saad ...... ............ (vacant) Senegal ........... Ousmane Seck .................... Famara Ibrahima Sagna Sierra Leone ........ ... A. B. Kamara .................... B. M. Strasser-King Singapore(O) ............ Hon Sui Sen .......... .......... Howe Yoon Chong Somalia ............ Abdurahman Nur Herzi .............. Mohamud Jama Ahmed South Africa ........... T. W. de Jongh .................... G. P. C. de Kock Spain . .......... Jose Llad6 y Fernandez-Urrutia ....... Jose Maria L6pez de Letona y Nuhez del Pino Sri Lanka ........... Felix R. Dias Bandaranaike ........... Lal Jayawardena Sudan ............ Nasr Eldin Mustafa .................. Abdel Rahman Abdel-Wahab Swaziland ............ James Nxumalo ....... ............ V. E. Sikhondze Sweden.. .... Gosta Bohman .... ...............Ola Ullsten Syrian Arab Republic ........... Sadek Ayoubi .................... Abdul Hadi Nehlawi Tanzania .... E. 1. M. Mtei. E. A. Mulokozi Thailand .... Suphat Sutatum .Amnuay Viravan Togo .... Koudjolou Dogo .Akuete Eklu-Natey Trinidad and Tobago ............. E. E. Williams .................... F. Barsotti Tunisia ............. Mustapha Zaanouni ... ............. Rachid Sfar Turkey ............. Yilmaz Ergenekon ................... Kaya Erdem Uganda ............. Moses Ali .................... Jino Geria United Arab Emirates(') ............. Hamdan Bin Rashid Al Maktoom ...... Ahmed Humaid Al-Tayer United Kingdom ........... . Gordon Richardson .................. Sir Douglas Wass United States ................ W. Michael Blumenthal .... . ........ Richard N. Cooper Upper Volta ......... ....... Patrice Ouattara ................. Pierre Tahita Uruguay() ................ Valentin Arismendi ................. Juan Jose Anichini Venezuela(') ................ Lorenzo AzpurGa Marturet ............ Hector Hurtado Viet Nam ................ Tran Duong .. ................ Mai Huu Ich Western Samoa . ............... Vaovasamanaia R. P. Phillips ......... lulai Toma Yemen Arab Republic ................ Mohamed Salem Basendwah ......... Ali Al-Bahar Yemen, People's Democratic Republic of ..... ........... Abdul-Aziz Abdul-Wali ............... Farag Bin Ghanem Yugoslavia ........ ........ Momcilo Cemovic .. . ............... Miodrag Stojiljkovi6 Zaire ............... . Bofossa w'Amb'ea Nkoso ............. Asal B. ldzumbuir Zambia ................ John M. Mwanakatwe ............... . Francis M. Walusiku (1) Member of the Bank only. (z) Appointment effective after June 30, 1977. 166 Executive Directors and Alternates Appendix 5 of the Bank and IDA June 30, 1977 Total votes Executive Director Alternate Casting votes of Batik IDA Appointed Edward R. Fried ............. Hal F. Reynolds .............. United States 64,980 626,654 William S. Ryrie ............. Ronald F. R. Deare .............. United Kingdom .26,250 213,176 HansJanssen ............. Hans-Dieter Hanfland ............ Germany (Federal Republic of) .13,903 174,725 Jacques Henri Wahl ............. Ren6-Paul Rigaud .............. France .13,042 112,817 Susumu Murayama ............. Fumiya Iwasaki .............. Japan .10,480 136,039 I}lected Giorgio Rota ............. German Calvillo .............. Italy, Portugal,(') Spain .13,446 99,656 (Italy) (Spain) Earl G. Drake ...... Edward M. Agostini ........... Bahamas,(') Barbados,(') Canada, Grenada, (Canada) (Guyana) Guyana, Ireland, Janaica() .13,116 126,509 S. R. Sen ............. Md. Matiul Islam(2) ........... Bangladesh, India, Sri Lanka .11,644 122,627 (India) (Bangladesh) Anthony IJ. A. Looijen ........... Gavra D. Popovi6 ......... Cyprus, Israel, Netherlands, Romania,°) (Netherlands) (Yugoslavia) Yugoslavia .11,302 84,900 Jacques de Groote ......... Tunc Bilget ........... Austria, Belgium, Luxembourg, Turkey 10,335 73,550 (Belgium) (Turkey) Said E. El-Naggar ......... Saleh A. Al-Hegelan ........... Bahrain,O) Egypt (Arab Republic of), Iraq, (Arab Republic of Egypt) (Saudi Arabia) Jordan, Kuwait, Lebanon, Pakistan, Qatar,/) Saudi Arabia, Syrian Arab Republic, United Arab Emirates,O) Yemen Arab Republic .10,123 87,684 Einar Magnussen ........... Valgeir Arsaelsson .......... Denmark, Finland, Iceland, Norway, Sweden . 10,087 141,577 (Norway) (Iceland) Thavil Khutrakul ......... Bharat B. Pradhan .......... Burma, Fiji, Indonesia, Korea, Lao People's (Thailand) (Nepal) Democratic Republic, Malaysia, Nepal, Singapore,11) Thailand, Viet Nam .9,805 95,652 Timothy T. Thahane ........... A. H. Madinga ....... Botswana, Burundi, Equatorial Guinea, Ethiopia, (Lesotho) (Malawi) Gambia (The), Guinea, Kenya, Lesotho, Liberia, Malawi, Nigeria, Sierra Leone, Sudan, Swaziland, Tanzania,Trinidad and Tobago, Uganda, Zambia. . 9,766 95,746 Yahia Khelif ..... Kwaku Gyasi-Twum ........... Afghanistan, Algeria, Ghana, Greece, Iran, (Algeria) (Ghana) Libya, Morocco, Oman, Tunisia, Yemen (People's Democratic Republic of) .8,800 97,585 R. A. Johnston. ....... Gerald S. Aburn ........ Australia, New Zealand, Papua New Guinea, (Australia) (New Zealand) Western Samoa .8,575 62,218 Eduardo Pesqueira .......... Eduardo A. McCullough ... ....... CostaRica,El Salvador,Guatemala, Haiti, Honduras, (Mexico) (Panama) Mexico, Nicaragua, Panama, Peru, Venezuela('). 8,338 47,230 Armand Razafindrab6 ............ Stanislas Y. Kpognon(3) .......... Benin, Cameroon, Central African Empire, Chad, (Madagascar) (Benin) Congo (People's Republic of the), Gabon, Ivory Coast, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, Senegal, Somalia, Togo, Upper Volta, Zaire .8,243 104,215 Ernesto Franco-Holguin ...... .... Ramon Martinez Aponte... ....... Brazil, Colombia, Dominican Republic, (Colombia) (Dominican Republic) Ecuador, Philippines .7,562 85,081 Julio C. Guti6rrez ......... Eduardo R. Conesa .......... Argentina, Bolivia, Chile, Paraguay, Uruguay(') 6,607 24,598 (Paraguay) (Argentina) IV addition to the Executive Directors and Alternates shown in the foregoing list, the following also served after October 31, 1976: Executive Director End of period of service Alternate Director End of period of service Charles A. Cooper November 5, 1976 Bruce M. Cheek April 30, 1977 (United States) (Australia) Thro Hori November 22, 1976 Claus Knetschke April 30, 1977 (Japan) (Federal Republic of Germany) W. A. E. Green March 31, 1977 Jon Aase April 30, 1977 (New Zealand) (Norway) Masanao Matsunaga May 31, 1977 Toshihiro Kiribuchi June 20, 1977 (Japan) (Japan) Note: Cambodia (464 votes in IBRD and 7,826 votes in IDA), China (7,750votes in IBRD and 71,247 votes in IDA), and South Africa (2,980 votes in IBRD and 10,725 votes in IDA) did not participate in the 1976 Regular Election of Executive Directors. Comoros(') (266 votes in IBRD) and Guinea-Bissau (277 votes in IBRD and 528 vytes in IDA) became members after that Election. (5) Member of the Bank only. (2) To be succeeded by M. Syeduzzaman (Bangladesh) effective July 20, 1977. (3) Resigned effective July 1, 1977; successor not yet appointed. 167 Officers and Department Directors Appendix 6 of the Bank and IDA July 1, 1977 President ................................. ........................................ Robe rt S. McN am ara Senior Vice President, Operations .......... J. Burke Knapp Vice President and General Counsel .......... A. Broches Vice President, Finance ........... 1. P. M. Cargill Vice President, Administration, Organization, Personnel Management .......... Bernard Chadenet Vice President, Development Policy .......... Hollis B. Chenery Vice President, External Relations .......... William D. Clark/ Director-Genera i, Oper ations Evaluation .................. ......... ................... M ervyn L. Weiner Vice President, Projects Staff .................... Warren C. Baum - Regional Vice President, Europe, Middle East, and North Africa.Munir Benjenk X Regional Vice President, Western Africa...... ..... Roger Chaufournier Regional Vice President, East Asia and Pacific ........... S. Shahid Husain Regional Vice President, Latin America and the Caribbean ............ Adalbert Krieger Regional Vice President, South Asia ................................................... E rnest Stern Regional Vice President, Eastern Africa .... ......................... Willi Wapenhans Assistant to the Vice President, Finance ............................. John H. Adler Secretary ............................. P. N. Damry-- Director, Programming and Budgeting Department ......... K. Georg Gabriel Controller ............... ........................................................... M asaya Hattori Treasurer .......................................................................... Eu gene H. Rotberg. Director, Projects Department, Eastern Africa ............. Hans A. Adler Director, Development Economics Department ............. Dragoslav Avramovic Director, Resident Staff, Indonesia ............. Jean Baneth Director, Country Programs Department 11, Europe, Middle East, and North Africa .......... Maurice P. Bart Director, Country Programs Department, South Asia ............. Manfred G. Blobel- Director, International Relations Department ............. Shirley Boskey Director, European Office....... ...... Jean P. Carriere Director, Personnel Department ............. R. A. Clarke Director, Country Programs Department 11, Western Africa ............. F. X. de la Renaudiere Director, Development Research Center ............. John H. Duloy Director, Economic Development Institute ............. Raymond M. Frost Director, Industrial Projects Department ............. Hans Fuchs Director, Financial Policy .............. ............................................... Raymo nd J. Goodman Director, Industrial Development and Finance Department ............ David L. Gordon Director, Projects Department, Western Africa ............ Andr6 Gue(l) Director, Policy Planning and Program Review Department ............ Mahbub ul Haq Director, Economic Analysis and Projections Department......... ... Helen Hughes Director, Education Department (Acting) ............ Mats G. Hultin Director, Urban Projects Department ............ Edward V. K. Jaycox Director, Population Projects Department ............ K. Kanagaratnam Director, Operations Evaluation Department ............ Shiv S. Kapur Director, Development Policy ............ Attila Karaosmanoglu Director, Organization Planning Department ............ James M. Kearns Director, Projects Department, East Asia and Pacific ............ Syed Salar Kirmani Director, Projects Department, Europe, Middle East, and North Africa ....... A. David Knox Environmental and Health Adviser, Office of Environmental and Health Affairs ............ James A. Lee Executive Secretary, Consultative Group on International Agricultural Research ............ Michael L. Lejeune Director, Country Programs Department I, Latin America and the Caribbean ............ Enrique Lerdau Director, Tokyo Office ............ ................................................... Tarao Maeda Director, Information and Public Affairs Department................ ... John E. Merriam Director, Computing Activities Department ...... ............ Mervin E. Muller Associate General Counsel .................. Lester Nurick Director, Country Programs Department I, Europe, Middle East, and North Africa ........... Martijn J. W. M. Paiimans Director, Projects Department, South Asia............ ...... Robert Picciotto Director, Country Programs Department I, Eastern Africa .................. Stanley Please Director, Internal Auditing Department .................. Lawrence N. Rapley Director, Energy, Water, and Telecommunications Department ..... ........ ..... Yves Rovani Director, Country Programs Department I, Western Africa (Acting) .................. Rainer B. Steckhan Director, Projects Department, Western Africa ................... Wilfrid P. Thalwitz(2) Director, Tourism Projects Department .................. Stokes M. Tolbert Director, Administrative Services Department .................. James E. Twining, Jr. Director, Projects Department, Latin America and the Caribbean ............. ..... Suitbertus L. M. van der Meer Director, Projects Advisory Staff ................... Herman G. van der Tak Director, Country Programs Department, East Asia and Pacific ................... Gregory B. Votaw Director, Country Programs Department II, Eastern Africa .................. Michael H. Wiehen Director, Country Programs Department II, Latin America and the Caribbean ............... Gunter K. Wiese Director, Transportation Department................ .. Christopher R. Willoughby Director, Agriculture and Rural Development Department ............ ...... Montague Yudelman (') Until September 1977. (2) On sabbatical leave until September 1977. 168 World Bank Offices Appendix 7 July 1, 1977 Headquarters: 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. New York Office Julian P. Grenfell, United Nations Special Representative for Room 2435, Secretariat Building United Nations Organizations New York, N.Y. 10017, U.S.A. European Office Jean P. Carriere, 66, avenue d'l6na Director 75116 Paris, France London Office New Zealand House Haymarket London, SWI Y4TE, England Tokyo Office Tarao Maeda, Kokusai Building Director 1-1 Marunouchi 3-chome Chiyoda-ku, Tokyo 100, Japan Eastern Africa John D. North, Extelcoms House Regional Director Haile Selassie Avenue Mission Nairobi, Kenya (mailing address: P.O. Box 30577) Western Africa Paul Geli, Immeuble Shell Regional Chief 64, avenue Lamblin Mission Abidjan, Ivory Coast (mailing address: B.P. 1850) Thailand Hendrik van der Heiiden, Udom Vidhya Building Regional Chief 956 Rama IV Road, Sala Daeng Mission Bangkok 5, Thailand Afghanistan Tae-Hee Yoon, World Bank Resident Mission Resident Representative P.O. Box 211 Kabul, Afghanistan Bangladesh Leonard Weiss, World Bank Resident Mission Chief Bangladesh Bank Building (4th Floor) Motijheel Commercial Area G.P.O. Box 97 Dacca, Bangladesh Bolivia Rolando Arrivillaga, World Bank Resident Mission Resident Representative (Banco Mundial) Edificio Banco Nacional de Bolivia 4N Piso Avenida Camacho y Calle Col6n La Paz, Bolivia Cameroon Michel Palein, World Bank Resident Mission Resident Representative Immeuble Concorde angle avenue El Hadj Ahmadou Ahidjo et avenue J. F. Kennedy Yaounde, Cameroon (mailing address: B.P. 1128) Colombia Ian A. Scott, World Bank Resident Mission Resident Representative Edificio Aseguradora del Valle Carrera 10, No. 24-55, Piso 17 Bogota D.E., Colombia (mailing address: Banco Mundial, Apartado Aereo 10229) Ethiopia Eilert J. de Jong, World Bank Resident Mission Acting Resident Representative I.B.T.E. New Telecommunications Building (First Floor) Churchill Road Addis Ababa, Ethiopia (mailing address: I.B.R.D. Mission, P.O. Box 5515) Ghana James J. McGibbon, World Bank Resident Mission Resident Representative c/o Royal Guardian Exchange Assurance Building, Head Office High Street Accra, Ghana (mailing address: P.O. Box M27) (continued) 169 World Bank Offices (continued) Appendix 7 July 1, 1977 India Jochen Kraske, World Bank Resident Mission Chief 55 Lodi Estate New Delhi 3, India (mailing address: P.O. Box 416) Indonesia Jean Baneth, World Bank Resident Staff Director Jalan Wahid Hasyim 100 Jakarta, Indonesia (mailing address: P.O. Box 324/J KT) Mali Michael F. Carter, World Bank Resident Mission Resident Representative Quartier du Pont rue Square Lumumba Bamako, Mali (mailing address: B.P. 1864) Nepal David Thomas, World Bank (I.B.R.D.) Resident Mission Resident Representative R.N.A.C. Building (First Floor) Kathmandu, Nepal (mailing address: P.O. Box 798) Nigeria Peter Reitter, World Bank Resident Mission Chief 30 Macarthy Street Lagos, Nigeria (mailing address: P.O. Box 127) Pakistan Alexander F. Kirk, World Bank Resident Mission Resident Representative P.O. Box 1025 Islamabad, Pakistan Saudi Arabia Sir Gordon MacKay, World Bank Resident Mission Director Electric Company Street Riyadh, Saudi Arabia (mailing address: P.O. Box 5900) Somalia Cornelius P. Cacho, World Bank Resident Mission Resident Representative c/o Somali Development Bank Building P.O. Box 1825 Mogadishu, Somalia Sudan Shawki Farag, World Bank Resident Mission Resident Representative 28 Block 2H, Baladia Street Khartoum, Sudan (mailing address: P.O. Box 2211) Tanzania Lyle M. Hansen, World Bank Resident Mission Resident Representative N.I.C. Building(7th Floor, B) Dar es Salaam, Tanzania (mailing address: P.O. Box 2054) Upper Volta Abdallah El Maaroufi, World Bank Resident Mission Resident Representative Avenue Monseigneur Thevenoud Ouagadougou, Upper Volta (mailing address: B.P. 622) Venezuela Jose A. Guerra, World Bank Resident Mission Resident Representative Centro Andres Bello Avenida Andres Bello, 113-E, Mariperez Caracas, Venezuela (mailing address: Apartado 6725, Caracas 101) Zaire Attila Sonmez, World Bank Resident Mission Resident Representative Building UZB Avenue des Aviateurs Kinshasa 1, Republic of Zaire (mailing address: P.O. Box 14816) Zambia Hans H. Reichelt, World Bank Mission in Zambia Resident Representative Kulima Tower (13th Floor) Katunjila Road Lusaka, Zambia (mailing address: P.O. Box 4410) 170 Photo Credits Cover: Ray Witlin Frontispiece: Jaime M. Martin PAzge 33: John Mo/I Page 39: Ray Witlin Page 43: Edwin G. Hufiman Page 49: Peter C. Muncie Page 53: Tomas SennetU Page 59: Edwin G. Hufiman Page 84: Edwin G. Huffman I t I World Bank Headquarters: 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. Telephone: (202) 393-6360 Cable address: INTBAFRAD WASHINGTONDC European Office: 66, avenue d'lena 75116 Paris, France Tokyo Office: Kokusai Building 1-1 Marunouchi 3-chome Chiyoda-ku, Tokyo 100, Japan