World BankAnnual Report 1976

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The World Bank

The World Bank is a group of threeinstitutions, the International Bank forReconstruction and Development (IBRD), theInternational Development Association (IDA),and the International Finance Corporation(IFC).

The common objective of these institutionsis to help raise standards of living in developingcountries by channeling financial resourcesfrom developed countries to the developingworld.

The Bank was established in December1945,and makes loans at a rate which is calculatedin accordance with a formula related to its costof borrowing. The Bank's charter spells outcertain basic rules which govern its operations.It must lend only for productive purposes, andpay due regard to the prospects of repayment.Each loan is made to a government or must beguaranteed by the government concerned. Theuse of loans cannot be restricted to purchasesin any particular member country. And theBank's decisions to lend must be based onlyon economic considerations.

The International Development Associationwas established in 1960 to provide assistancefor the same purposes as the Bank, but onterms that would bear less heavily on thebalance of payments of the borrowingcountries. Though legally and financiallydistinct from the Bank, IDA is administered bythe same staff. IDA's assistance is concentratedon countries which are very poor-mainlythose with an annual per capita gross nationalproduct of less than $375. More than 40countries are eligible under this criterion. Theyinclude more than 80% of the population ofthe 100 countries that are current borrowersfrom the Bank, IDA, or both. About 74% of thepeople living in IDA-eligible countries live inAsia, 14% in Africa south of the Sahara, 9.5%in the Middle East and North Africa, and 2.50%in Latin America and the Caribbean area.

While the Bank has traditionally financed allkinds of infrastructure facilities such as roads,railways, and power facilities, its presentdevelopmental strategy places a greatlyincreased emphasis on investments which candirectly affect the well-being of the masses ofpoor people of developing countries bymaking them more productive and byincluding them as active participants in thedevelopment process. This strategy isincreasingly evident in the rural development,agriculture, and education projects which theBank and IDA help finance. The same strategyis also being carried out for the benefit of theurban poor in projects designed to developwater and sewerage facilities as well as "core"low-cost housing, and to increase theproductivity of small industries.

Table of ContentsPage

The Record for Ten Years-1 967-76 .................................................... 3

Summary and Background of the Year's Activities ........................................ 5

The Year's Activities, by RegionEastern Africa .................................................................... 24Western Africa . ................................................................... 29

i East Asia and Pacific . ............................................................... 34South Asia ....................................................................... 39Europe, Middle East, and North Africa ............................................... 44Latin America and the Caribbean .................................................... 50

Projects Approved for Bank and IDA Assistance in Fiscal 1976, by Sector ..... ................ 55

Technical AssistanceTechnical Assistance . ............................................................. 73Economic Development Institute .................................................... 74

Other ActivitiesAid Coordination . ................................................................ 76Inter-Agency Cooperation .......................................................... 76International Agricultural Research .................................................. 78Economic Research and Studies ..................................................... 79Operations Evaluation ............... .............................................. 80Internal Auditing . ................................................................. 81International Centre for Settlement of Investment Disputes ............................. 81Bank and IDA M embership ......................................................... 81

Borrowings and FinanceIncome and Expenditure: Bank ...................................................... 82Other Financial Operations: Bank ................................................... 82The Bank's Borrowings-Fiscal 1976 ................................................. 83Borrowing Costs: Bank ............. ............................................... 86Increase in Capital ................... 86Selective Capital Increase ........................... , , , , . ...... 86Finances: IDA .................................................................... 86Foreign and International Bond Markets-Calendar 1975 ................................ 86

Executive DirectorsExecutive Directors ............. 91Joint Audit Committee ............. ............................................... 92

Statistical Annex . ................................................................... 93

Bank Appendices . ................................................................... 115

IDA Appendices . ................................................................... 133

Bank/IDA Appendices ................ ............................................... 149

Front cover Rice terraceh at Banauc. PhiUppines.The high-yielding rice grovn here has been developec/bv the International Rice Research Inatntute (IRRI).wvhose heacdojartrr i, in Ln, Bari.,o, Phiiippinne.

The Executive Directors

Muhammad Al-Atrash The Executive Directors of theLuis Barrios Tassano International Bank for A

Charles A. Cooper Reconstruction and DevelopmentJacques de Groote and the International DevelopmentEarl G. Drake Association have had prepared thisErnesto Franco-Holguin Annual Report for the fiscal yearV. Amado Gavidia H. July 1, 1975 to June 30,1976, inW. A. E. Green accordance with the By-LawsTaro Hori of the two organizations.Hans Janssen Robert S. McNamara, President ofYahia Khelif the Bank and the Association andThavil Khutrakul Chairman of the Boards ofIsmael El Misbah Mekki Executive Directors, has submittedArmand Razafindrabe this Report, together withGiorgio Rota accompanying administrativeWilliam S. Ryrie budgets and audited financialS. R. Sen statements, to the Boards ofJon Sigurdsson Governors. The Annual Reports ofJacques Henri Wahl the International FinancePeter C. Witte Corporation and the International

Centre for Settlement ofInvestment Disputes are published

June 30,1976 separately.

2

The Record for Ten Years-1967-76

Amount in US$ millions

Fiscal Year

1967 1968 1969 1970 1971 1972 1973 1974 1975 1976

World Bank

;perations Approved 46 44 82 69 78 72 73 105 122 141

Loan Amounts(1 ) 777 847 1,399 1,580 1,921 1,966 2,051 3,218 4,320 4,977

Countries 35 31 44 39 42 40 42 49 51 51

Disbursements,2' 790 772 762 754 915 1,182 1,180 1,533 1,995 2,470

Total Income 331 356 410 504 578 646 758 929 1,157 1,330

Net Income 170 169 171 213 212 183 186 216 275 220

Total Reserves 1,023 1,160 1,254 1,329 1,444 1,597 1,750 1,772 1,902 1,916

Borrowings: Total 729 735 1,224 735 1,368 1,744 1,723 1,853 3,510 3,811

Botrowings: Net 503 222 698 299 819 1,136 955 990 2,483 2,530

Subscribed Capital 22,850 22,942 23,036 23,159 23,871 26,607 30,397 30,431 30,821 30,861

Member Countries 106 107 110 113 116 117 122 124 125 127

Professional Staff 734 767 961 1,170 1,348 1,516 1,654 1,752 1,883 2,066

IDA

Operations Approved(30 17 16 29 50 51 68 75 69 68 73

Credit Amounts 353 107 385 606 584 1,000 1,357 1,095 1,576 1,655

Countries 13 14 28 33 34 38 43 41 39 39

Disbursements 342 319 256 143 235 261 493 711 1,026 1,252

Usable Resources,

cumulative 1,767 1,807 2,176 3,182 3,343 4,204 7,019 7,433 11,608 11,514

Member Countries 97 98 102 105 107 108 112 113 114 116

' Excludes loans to IFC of $100 million in FY1967, $100 million in FY1970, $60 million is FY1972, $40 million in FY1973, $110 million in FY1974,$50 million in FY1975, and $70 million in FY1976. Includes amounts in FY1976 lent on Third Window terms.

(0) Excludes disbursements on loans to IFC.3 Joint Bank/IDA operations are counted only once, as Bank operations.

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Summary and Backgroundof the Year's Activities

In fiscal 1976, the World Bank, including its cline in short-term yields on its investments.i.wo affiliates, the International Development The General Reserve Account was debited inAssociation (IDA) and the International Finance fiscal 1976 in the amount of $151 million as aCorporation (IFC), made lending and invest- result of currency revaluations and devalua-ment commitments totaling $6,877.4 million. tions in the period. (For further details, see theThis was $769 million above the record level section "Income and Expenditures: Bank" inof fiscal 1975. A total of 141 Bank loans, 73 the chapter "Borrowings and Finance" of thisIDA credits, and 33 IFC investments were ap- Report.) Borrowings increased from $3,510 mil-proved during the year. In fiscal 1975, loans lion in fiscal 1975 to $3,811 million during thetotaled 122, there were 68 credits, and invest- fiscal year just completed. Disbursements byments numbered 31. The Bank's commitments the Bank and IDA reached new highs duringrose by $657 million to $4,977 million. IDA the year.12) Bank disbursements rose by $475lending expanded by $79 million to $1,655 million to $2,470 million, and IDA's by $226million. Investments by the IFC during the year million, to $1,252 million.rose by some $34 million to $245 million. (For The Bank and IDA continued to expand theirfurther details, see the IFC's Annual Report.) In assistance to the poorest among their memberaddition, the Bank made one loan, of $70 countries. Those countries accounted for 39%million, to the IFC. of total Bank and IDA commitments, as op-

Inflation, however, continued to moderate posed to 38% in fiscal 1975. In the case ofthe growth of lending in real terms.t") If Bank IDA alone, such countries accounted for 92%and IDA commitments in fiscal 1975 were to of commitments, as against 84% in fiscal 1975.be expressed in terms of 1976 dollars, Bank For the second consecutive year, lending forlending in fiscal 1976 would be $391 million, agriculture and rural development was greateror 9%, higher in real terms, as against $657 than for any other sector. Sixty-five projectsmillion, or 15%, higher in nominal terms. IDA were approved, involving commitments ofcommitments would be 1 % down in real terms, $1,627.6 million. Of the 65, 38 were rural devel-although 5% up in nominal value. Total Bank opment projects in which the majority of theand IDA commitments would be up by 6% benefits accrue to the rural poor. Agricultureif measured in constant 1976 dollars, from and rural development lending accounted for$6,259 million in fiscal 1975 to $6,632 million about 25% of all Bank and IDA commitmentsin fiscal 1976. during the year. (For more on agriculture and

Net income of the Bank, for fiscal 1976, at rural development lending, see the section$220 million, was down 20% from the previous "Rural Development" which appears else-year. This was mainly due to the increased where in this chapter.) Lending in the "tradi-costs of servicing the Bank's debts and a de- tional" sectors -power, transportation, and

telecommunications-totaled about 36%, up

Since the real value of loan commitments by the Bank is somewhat over the 1975 level of about 29%eroded to the extent that cost inflation occurs over the in fiscal 1974, it was 43%/o.period of disbursements, it is the practice of the Bank tomake allowance for escalation at the time of commitment.The deflator now used by the Bank to express lending in Capital Increasereal terms is a weighted average of the price levels assumedto be prevailing over the period of the execution of theproject. Under the Bank's Articles of Agreement, the

(2) Figures exclude disbursements on loans to IFC. Bank's outstanding loans cannot be allowed to<a) Figures are in 1976 dollars. exceed the sum of its unimpaired subscribed

capital, reserves, and surplus. As of June 30,1976, outstanding loans amounted to $22,741million; its unimpaired subscribed capital, re-serves, and surplus totaled $32,777 million.(5"

TAvo Ethiopian vill'agers dig a trench icr a .iirtc Against this background, discussions werewhich wilibring water from a spring to their vi!!age. held during the year on the question of anThis operation is part of the supporting se;vices i, increase in the Bank's subscribed capital. Thea rural development program assisted vb a $2i discussions were based on a comprehensivemillion IDA credit. and wide-ranging review of both the appro- 5

would decrease the voting strength of otherdeveloped countries by 0.58%, to 18.79%/o

Note0: orSni dollar amounts 00000E00<00200;00 would reduce the voting strength of the non-Dol:lar amSounts usedinthetext of this Re-f oil developing countries by 1.38% to 29.43%;

port forcapSit@ aloftheBanfk refegrto UnitedE and increase the combined voting strengthStates dollars of the weight and fineness in of petroleum-exporting developing countrieseffect on July 1, 1944, while + thoseusedfor t from 4.44% to 9.22%,, in line with a similarsubscriptionfs anldcontritibutions to:DA 'iAth0 agreement reached on shares of quotas in the;;th exception of the Fourth Replenishment, vIMF. It was agreed that, as part of any further

refe toUnitd Satesdolars f te weght review of the Bank's futuire role, the questionand fi s iof the voting rights of all developing countries

lessotherwisespecifiXeYd,;all;other amounts;in would be included.US0 dollars refer to cur irent: dollars.OnedollarIt was also decided that the future lending;as ulsed for Bank capital andIDA sucrip- ; program of the Bank would not be based ontg; ;ionis andcont,ributionseqald;;apsuproxi9<-f; the assumption that a further increase in capi-mately 1t20635 current dollars, asof June 30, talization (General Capital Increase) beyond

1976 Fo moe dtaied iscssin, ee um- the Selective Capital Increase would be ap-p roved until members agreed on such an in-

included in0 Appendix C for the Bank and in crease. Given the amount bv which the Bank'sAppend;0ffix:F for SXiDiA.<ti<l00tdSlBat?iE:0i subscribed capital would increase as a result

of the actions taken during the fiscal year, itwas acknowledged that the level of lendingprograms for fiscal 1977 and beyond of some

priate volume of future Bank lending and the $5,800 million could be sustained.capital structure needed to sustain future lend-ing. The review indicated that an increase in Amortization of Loanscapital would be necessary.

After considering various alternative pro- It was decided during fiscal 1976 that theposals, the Executive Directors, in Mav 1976. method of amortizing Bank loans would betransmitted to the Board of Governors for a modified for loans approved after June 30,vote, two resolutions concerning the capitaliza- 1976. The modification will result in the loantion of the Bank. One provides that the Bank's principal being repaid in equal amounts ratherauthoiized capital be increased by $8,444 mil- than in gradually ascending amounts over thelion (in 1976 dollars; to 541,016 million; the amortization period. It wvas also agreed thatother, that up to $8,340 million of selective in- the Bank would manage repayment terms ofcreases in subscriptions to capital stock be future loans so that the weighted average graceallotted to 125 members. The remaining $104 period and final maturity do not exceed 3.8million would be unsubscribed capital avail- years and 19 years, respectively.able to accommodate new members' subscrip- These modifications were designed to helptions and for future increases in subscribed assure that loans outstanding and disbursedcapital. would not rise above the statutory limit im-

The increase is called "selective" in that posed by the Articles of Agreement.allotments are made to those individual mem-bers which accepted increases in their quotas Lending Ratein the International Monetary Fund (IMF). Thisselectivity reflects a long-standing policy of the The Bank's lending rate was increased, onBank that when increases in IME quotas are ac- an interim basis, to 8.85% for the period June 1cepted, members are also expected to request to June 30, 1976. The rate had been 8.5% sinceincreases in their subscriptions to the capital January 1975. It was decided that beginningof the Bank. A resolution to increase quotas in July 1, 1976, a new lending rate formula wouldthe IMF, arising from its sixth general review of be put into effect. It was approved after anmember countries' quotas, was approved by extensive review of the Bank's financialthe Fund's Board of Governors in March 1976. requirements.

Approval of the resolution to increase the The new formula provides that the Bank'sBank's authorized capital will require affirma- lending rate is to be reviewed at the end oftion by three-fourths of the voting power in the each quarterly period and adJusted to the aver-Board of Governors. The resolution allotting age weighted cost by amount and maturity ofselective increases in subscriptions will require funds borrowed by the Bank in the preced-a simple majority or the votes cast by the Gov- ing 12 months. To this calculation, a positiveernors for approval. spread of 0.5°%/o is to be added to arrive at the

if approved and subscribed in full, the Selec- interest rate that the Bank will charge bor-tive Capital Increase woLild lower the voting rowers on newv loans approved in the ensuingstrength of the Bank's five biggest shareholders quarter. The formula is to be applied pending(the United States, United Kingdom, Germany, consideration by the Executive Directors of aFrance, and Japan) by 2.18% to 42.56%0; it comprehensive review of the Bank's lending 6

rate policy, including analysis of a proposal termediate Financing Facility, more commonlycalling for "full-cost coverage," and considera- known as the Third Window, was adopted bytion, among other possible alternatives, of a a vote of the Executive Directors of the Bankpolicy in which the lending rate would be ad- on July 29, 1975. On December 23, 1975, thisjusted periodically during the disbursement facility, designed to enable the Bank to provideperiod of a loan, development assistance on terms intermediate

between those of the Bank and IDA, becameIDA effective; that was when pledges of $100 mil-

lion in contributions to the Interest SubsidyfOInth Septenshmbern1973,anDreemurent on s t Fund for the Third Window had been received.fouirth replenishment of IDA resources was The resources of the Subsidy Fund are sup-

reached. That agreement among 24 member plied bsome of the Bank's members and non-countries plus non-member Sxvitzerland, made , y .availabl to IDA commitment authority of member Switzerland on a voluntary basis. Thisavailable to IDA commitment authority oft usd udsplmet neetpyet

some $4501 milion fo the tree-yea perio, Subsidy Fund supplements interest paymentssome $4,501 million for the three-year period, due to the Bank from borrowers by paying thetiscal 1975-77. As of June 30, 1976, however, Bank semiannually an amount equal to 4% anot all contributions embodied in the agree- . o

ment ~ rece in Naroi ha bencnfre year of the outstanding principal of loans madement, reached in Nairobi,hadbeenconfirme on Third Window terms. The difference be-

or appropriated. tween the 4% paid by the Subsidy Fund andMoreover, the Fourth Replenishment Agree- the Bank's standard interest rate is paid by

ment, unlike its three predecessors, contained th borrowersno maintenance of value provision. Since the the orr es .agreement was reached, most of the cuBrrencies in the end of the fiscal year contributionsof contributing members have depreciated into the Fund. They were from: Canada-$20against the Umted States dollar, and as IDA million; Denmark-$3 million; Kuwait-$20credits are denominated in dollars, there has million; the Netherlands-$20 million; Norwaybeen a loss in commitment authority in excess ' . .. of $300 million as of June 30, 1976. The level -$4 million; Qatar-$2 million; Saud Arabilaor IDA's commitments during fiscal 1977, the United Arab Emirates-$5 million; Unitedfinal year covered by the Fourth Replenish- Kingdom-$10 millionr and Venezuelan$iement Agreement, will have to take account of .. gdm-1 milin an Venzu.a$_ment Agreemet,willhavetotakeacounto million. In addition, by the end of fiscal 1976,any loss in Fourth Replenishment resources. Australia had notified the Bank it would con-Most IDA lending is committed to the very tribute $A4 million to the Fund in early fiscalpoorest of the developing countries, which 1977. 4)cannot borrow on private capital markets, and A o which cannot afford to borrow all their require- cA ofJ contributions wnt to sub-ments on conventional Bank terms. (Some c. .920%,o of all IDA commitments in fiscal 1976 sildize approximately $600 million of loans.went to countries with annual per capita in- Total lending in fiscal 1976 on Third Windowwentto ountieSwithannal pr cpitaIn~ terms was $477.8 million for 20 pro jects.comes of $200 or less.) A decline in IDA com-mitments would, therefore, hit worst those Before the first loans on Third Window terms

countries thtrteotnedfowere approved, eligibility criteria for benefi-countries that are the most in need of conces- ciaries of Third Window loans were establishedsionary resources. by the Bank. It was agreed that Third Window

lDuring fiscal 1976, three meetings were held lending would be normally (but not exclu-of the deputies appointed by IDA's Board of lending would be normal (bt not exfra sively) extended to countries with 1972 perGovernors to negotiate new resources or capita incomes of under $375; that loans wouldperiod beginning July 1, 1977, for the Bank's be extended only to countries which were re-affiliate. Participating in these meetings, held garded as making reasonable development ef-in Paris, London, and Helsinki, were potential forts in relation to their resource base and

.new contributors as well as contributors to dopmen po th at potental re-th Fort Relnsmn.greet ao d.evelopment potential; and that potential re-the Fourth Replenishment Agreement. A major ci en conre utb u dal ortopic of discussion during the year concerned cipient countrges must be judged able to repaythepsize of discussiontdurereplenise the y nera the loans, taking account of the deteriorationthe size of a future replenishment and the ex- in their terms of trade and other factors affect-tent to which an increase would be necessary in their long-run apacity et raytoas in

to compensate or inflation.ing their long-run capacity to repay toans Into compensate for Inflation. .It was also noted that IDA's present commit- foreign exchange.

,that Although, as noted earlier, repavment termsment authority ends on June 30,1977, andt for Bank loans are being hardened those forif the basis for a new agreement were not Third Window operations are to remain un-reached within the next 12 months, new opera- changed. The purpose is to ensure that alltions of the Association would be effectively Third Wno peraos enance thesuspended. Third Window operations are financed on the

Third Window"I Both France and Belgium have affirmed their intention toAnother significant development during the contribute to the Interest Subsidy Fund, pending parlia-

year was that a resolution establishing the In- mentary approval. 7

Lending on Third Window Terms, by Country, capita terms. On the other hand, the more de-Sector, and Amount veloped among the developing countries re-(US$ millions. Fiscal year 1976.) corded a growth rate of 6.4 % during the three-

CoL ntrv Sector Amount year period.To the extent that growth has taken place in

Bolivia Agriculture 9.5 large parts of the developing world, it hasBotswana Education 3.5V) strengthened the foundations for future ex-Cameroon Education 17.0 pansion. Manv countries have sought to faceCaribbean Regioni DFC 3*Qt pnso.0nycutre ae2ogt ofcEgypt, Arab their new problems resolutely by, for instance,

Republic of Agriculture 50.0 initiating tax reforms, adjusting the domesticEl Salvador Electric power 9.o(3) prices of petroleum and food, providing incen-Ghana Agriculture 21.0 tives to stimulate agricultural production, andIndia Agriculture 145.0 by adjusting exchange rates.Korea, Republic of Agriculture 40.0(" Generally, continued growth-albeit at aLiberia Education 4.0 slower pace-has been helped by two factors.Valawi Agriculture 9.2 The poorest countries have increased theirPMorocco Education 25.0 agricultural production. In the others, develop-

Paraguia Education 4.0 ment has been sustained by heavy additionalPhilippines Education 25.0 borrowing from external sources.Philippines Urbanization IC.V'' The deterioration in the world economy wasSenegal Transportation 6.6 not fully felt by most developing countries untilSudan Transportation 20.0"' 1975. It was then that the effects of measuresThailand Agriculture 21.0 designed to control inflation in the industrial-Thailand Agriculture 5.0 ized nations began to be felt, to a considerable

Total 477.8 degree, in the developing countries. Thus, de-(W kVith a $7 million Bank loan on conventional terms. mand for imports-even those other than oil-(' )With a $17 million Bank loan on conventional terms. dropped close to 10% in volume terms; with(3) With a $30 million Bank loan on conventional terms. few exceptions commodity prices upon which

\i With a $20 million Bank loan on conventional terms. ' e) With a $22 million Bank loan on conventional terms. many poor countries depend for foreign ex-( With a $9 million IDA credit. change earnings, dropped, some of them pre-

cipitously. On the other hand, prices of manu-factures exported to developing countries rose,

same terms. Thus, in such operations, repay- as inflation in the industrialized world con-ment schedules will continue to be of the tinued despite the recession.annuity type-with a standard grace period of The poorest countries had fewer policy op-seven years, and final maturity of about 25 tions open to them than the other developingyears. countries when attempting to deal with this

economic situation. Most of the former wereEconomies in Adjustment unable to attract sufficient capital from external

sources to sustain their growth. Events soonSince late 1973, the developing countries forced them to recognize the need for eco-

have been burdened by a series of events nomic and fiscal reforms.which, when they began, had threatened to In Kenya, for instance, the Governmentleave their economies in disarray. These events adopted a wage and price policy to limitare well known. They included accelerated growth in private consumption for all but therises in prices of both capital goods and some lowvest-income groups. An Action Programprimary commodities, sudden and substantial adopted in early 1975, has as its aim, the re-increases in petroleum prices, food and fertil- structuring of the economy by restraining im-izer shortages, and recession in the industrial- ports in a way that has the least impact onized countries. food and by directing more production into

Notwithstanding the problems posed by a exports. Prices paid to farmers for food werecombination of recession and inflation, the de- raised and export incentives introduced. Projectveloping countries have been able to maintain preparation for public investments was im-reasonably high rates of growth in 1974 and proved. The country's currency was devalued.1975. During the three-year period, 1973-75, In Burma, procurement prices for paddythe annual growth of gross domestic product were greatly raised, with the resu It that the area(GDP) of all non-oil developing countries, under rice increased by 6% in 1976. State eco-taken together, has been 5.4%, against 6.0% in nomic enterprises which, in the past, proved tothe previous five years. But, despite good aver- be a budgetary drain, are being reorganized. Aage figures, the poorest countries-essentially drastic tax reform, which should help mobilizethose in South Asia and in Africa south of resources, was enacted in April 1976.the Sahara-have not done well; their annual In Egypt, consumer price policy for agri-growth rate of only 2.8% has been nearly cultural products was changed; it now aims atoffset by increases in population. Thus, these more realistic pricing and limits subsidies tocountries have seen little real growth in per the poorest-income groups. 8

Similar efforts were recently undertaken in tive mobilization, allocation, and increase theSudan, where many consumer subsidies were efficiency of allocation of domestic resources.abolished, and steps were taken to encourage Assistance on concessionary terms is, therefore,the production of crops other than the tradi- only one element among many which are de-tional long-staple cotton on which the country signed to promote economic growth in devel-has long depended. oping countries. For those countries which are

The record of reforms initiated by develop- still in the early stages of development, how-ing countries in recent years abounds with such ever, concessionary external resources con-examples. They include attempts to reduce oil tinue to be essential to help finance a majorconsumption and improve oil and coal produc- part of their investment expenses.tion (India), the encouragement of additionalprivate savings (Pakistan), the alignment of Caital Fl DAC d OPECdomestic prices with international prices Cthrough cutbacks in consumer subsidies (Sene- Preliminary data from the Developmentgal, Brazil), increases in public investment Assistance Committee (DAC)'5 ) of the Orga-(Morocco), the adoption of conservative mone- nisation for Economic Co-operation and De-tary and credit policies to reduce inflation velopment (OECD) indicate that Official De-(Indonesia, Malaysia, the Philippines), the velopment Assistance (ODA) of $13,606 millionadoption of fiscal reforms to improve social by DAC members rose by 20% in dollar terms,equity (Colombia), increasing prices paid to and increased by an estimated 10% in realagricultural producers (Zambia), and in- terms in calendar year 1975, thereby recover-creasing taxes (Mexico, Costa Rica). Other ing from the fall in "real" aid in 1972 and 1973.examples are referred to in the regional chap- Sixteen of the 17 DAC member governmentsters of this Annual Report. In almost all cases, increased their outflow of ODA in dollars dur-implementation of the reforms has posed new ing the year, and 13 countries""' also raised itproblems. The task of moving from an econ- as a share of their gross national productomy in which distortions exist, to one in which (GNP). As a percentage of their combined GNP,there is flexibilitv and room for maneuver is ODA from members of the DAC rose fromrarely simple. Countries are, for instance, at- 0.33%,10 in 1974 to 0.36% in 1975.tempting to devise means to protect the very In 1974, Sweden became the first DAC coun-poor while maintaining the incentives for farm- try to provide the equivalent of 0.7% of its GNPers and without imposing too much of a bur- in the form of ODA. In 1975, both Sweden andden on the budget; they are trying to hold the Netherlands exceeded that percentage;wages more closely in line with productivity, ODA, as a percent of GNP, was 0.82% andwhere previously the former had frequently 0.75%, respectively, in the two countries.outrun the latter. This is not an easy task. Total flows of resources, which include ex-

The good weather of the past 12 months port credits extended by official and private in-has enabled the poorest developing countries stitutions, and direct and portfolio investments,to make economic gains. This is not surprising, to developing countries by DAC members, rosegiven the importance of agriculture in develop- 40% in the year to a record $37,461 million.ing countries-especially the poorer ones, According to DAC estimates, that figure waswhere the sector accounts for more than two- equivalent to 0.99% of DAC members' com-thirds of the total labor force. Past growth rates bined GNP. If grants by private agencies offor these countries are, in part, the result of $1,371 million are included, the total net flowfluctuating climatic conditions, including the of $38,832 million was equal to 1.02% of DACeffects of widespread droughts in Africa and members' combined GNP. This is the first timeSouth Asia, and floods in various parts of the the 1% target for all flows, official and private,Indian subcontinent at various times. has been reached. While it is still too early to

For the poorest countries, the availability of give figures for individual countries, it is clearexternal resources on concessionary terms has that practically all increased their total outflowbeen, and continues to be, a major factor in in dollar terms, sometimes very sharply, andpermitting them to implement their long-term that for at least seven countries-Belgium,development goals. IDA continues to be the Canada, France, Germany, the Netherlands,Bank's principal vehicle in the transfer of re- Sweden, and the United States-the flows, assources to these countries. Projects designed a share of GNP, were well above 1%. Theseto raise the productivity of the agriculture sec-tor, to providethe means for diversifying mono-cultural export economies, can help create, incultural export economies, can help create, in 0) Includes Australia, Austria, Belgium, Canada, Denmark, Fin-the long run, the savings in foreign exchange land, France, Germanv (Federal Republic of), Italy, Japan,and the broadening of the foreign exchange the Netherlands, New' Zealand, Norway, Sweden, Switzer-earnings base which can permit the countries of the European Communitees ,to lay the foundations for future growth. s" Australia, Belgium, Canada, Denmark, Finland, France, Ger-

Often, even of more importance to devel- many (Federal Republic ofi, the Netherlands, New Zealand,oping cuntrie, howevr, is he adopion of Norway, Sweden, Switzerland. and the United States. (Theoping countries, however, is the adoption of United Kingdom maintained its percentage at the 1974 level

domestic policies which encourage the effec- of 0.38%.) 9

figures exclude significant amounts in Euro- of Bank bonds and notes ($849 million). In ad-currency borrowing by developing countries dition, OPEC also provided most of the re-(which are discussed in the chapter, "Borrow- sources to the International Monetary Fund'sings and Finance" in this Annual Report). Al- oil facility.though most Euromarkets are located in DAC (Ways of increasing Official Developmentcountries, the funds in any one loan do not Assistance, as well as the problems of externalnecessarily originate in the country issuing it. indebtedness, were discussed at the Fourth

Although the statistics on the aid flows from United Nations Conference on Trade and De-members of the Organization of Petroleum- velopment, recently held in Nairobi. For addedExporting Countries (OPEC)71) are much less details, see the section "Inter-Agency Coopera-firm than those for the DAC countries, reports tion" in the chapter, "Other Activities.")indicate that total commitments by OPEC Multilateral institutions such as the Worldmembers rose from $1,469 million in 1973 to Bank have increased their lending commit-$8,575 million in 1974, and to $9,033 million ments and disbursements in the wake of thein 1975. Reported net disbursements also rose worldwide economic malaise. In order to en-rapidly, from about $922 million, to $4,647 mil- courage assistance from other sources, thelion, and to $5,589 million over the same three- Bank has also increased the scope of its co-year period. These figures include both conces- financing activities with other bilateral andsionary and non-concessionary resources. In multilateral agencies and with private financial1975, approximately 46% of net disbursements institutions. Details of this cooperation are pro-were on concessionary terms. The non-conces- vided in the regional chapters and in the "Aidsionary disbursements included the purchase Coordination" section on page 76.

The Flow of Financial Resources from DAC Countries to Developing Countries andMultilateral Institutions: 1970-75(US$000 millions)

Net disbursements 1970 1971 1972 1973 1974 1975(P)

Total, official and private"' 15.66 17.85 19.69 24.66 27.98 38.83As share of GNP (0) 0.78 0.80 0.77 0.79 0.82 1.02

Total official 7.93 8.95 10.08 11.85 13.50 16.27Official Development Assistance"2 ' 6.79 7.69 8.54 9.38 11.32 13.61

As share of GNP (0) 0.34 0.35 0.33 0.30 0.33 0.36Total private"') 7.73 8.90 9.61 12.81 14.48 22.57

Details may not add to totals because of rounding.05 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."(Pt Preliminary.

The events of the past several years have, in The impact of the recession in the industrial-many cases, brought about changes in the de- ized world was different for the developingvelopment policies and goals of developing countries with per capita incomes above $200countries. The use of petroleum as a source of than it was for the poorest ones below thatenergy and of some petrochemical products level. Many of the latter countries, whose ex-has obviously become more expensive, for port volume expanded slowly at an average ofexample. Reliance on imported food has also 2.4% a year between 1967 and 1973, werebecome less attractive. The case for promoting little affected; indeed, between 1973 andnew exports or new import substitution, where 1975, their exports increased slightly. Theit is possible, has generally become stronger. better-off developing countries, whose exportsIt must be expected that these adjustments will are more sensitive to changes in demand, en-take time-perhaps a decade or more, in some joyed a rapid growth of their export volume atcases, before their fruits are seen. The quality a rate of 8.1% a year between 1967 and 1973.of economic management will be of crucial This rate was reduced to only 1.3% a year forimportance in ensuring that they are smooth the years 1973 to 1975.and speedy. When the impact of the recession was felt,

however, these better-off countries had accessto commercial capital which, in 1974 and 1975,MAlgeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, increasin l the in for e 1

Libyan Arab Republic, Nigeria, Qatar, Saudi Arabia, United Increasingly became the main support for theArab Emirates, and Venezuela. maintenance or further increase of imports. 10

Bank Loans and IDA Credits Approved in 1975/76, by Region

Banik Iojn~- ' IDA r,idtr total', Banik lo~n~- am1(, re,it,-t TotalRvgion -- _____ - __ _- RegionCount rv N urnber' Anniou n N mhbe Airnou it Numbfer '' AMrOUnIt Country NLi nibei' Si ount Ntirmher Anmoir nt Num r-I AMUnaft

Eastern Africa Europe, Middle East, andBotswvana.......... 2 3 16.3 $ - 3 1 lie3 North AfricaBuruindi........3 1 2.7 3 '12.7 AfghaniClan ........ - 'S - 2 $ 35 0 2 3 35.11Last Articani Community I ( 5.0 - - 1 '15(1 Alger ia ........ 1 50.5 3 150.5Ethiopia .........- -1 270 27.0 Cyprus ..... .... 1 6.0 - - I 1-sOKenya.......... 4 1,18.0 4 -110 0 Fgypt, Aral) RepubliN Of... 4 157.0 6 5.0 5 2 22. 0Lesot[bo ... ...... - 1 5.5 1 5.5 Creece .2........ 70.0 2 70.0Madiagascar ........ - - I / 27.6 Ire.hInland. .......... I 30.)) - 1 30.0Maflavvi .. . . . . . . . . . 1 9.2 I I1I 6 2 2108 Jordan ... 2.....1...2...0.1)-Mauritius .......... 1 7.5 - I 7.5 Morocco ... .... 5 1s~ - - 5 15(1(Rwan(da ........... ).( 5 1.5 PortLugal .......... I 36.0 -1 36.0Somalia . ........ t.. .2 .5 23.2 Romtania .......... 4 17(0.0 4 170.11Sucdar, ............ 20.0 2 20 11 1 4(1.0 Sy,rian Arah Reptublic .. 2 o3.0 -- 2 63.0Tan7ania ... 1...... (50 4 451) 5 60.0 I urtisiia . 1......... "6.9 3 56.9)/air( ............ 2 4' 5 2 42.5 Turkey .4. ........ 2 (11.5 -4 2111.5Zambia .......... I 15.0 - I 15.11 Yemen, Arah Republic of ... -- 2 2.3.5 2 213.5

I? 3 2)6.11 () .3 2 ~4 In I 3 440.6Y)'nnen, People's DermocraticWestern Africa 1 26. 4 $Republii. of 2. ..... 10.2 2 (10.2

Ben inn, People~'s Reptiblic- ot1 - $ 0$~Yugoslavia.......... 6 242.11 - 6 221

Cameroorn ...... _ 193 2 Io 4 37.3 3 6 $ 1,141.') ) 3 141,.7 45 31,405.6Chulac........... . - - I 5E) 5.11Congo, Peoiple's Latin America and the

Riptibltic Of t he...... 1 10.0 - I 30.0 CaribbeanGanoybia, Thi'........ 2 0.1 2 11.)I Bolivia. 3 $ .14.5 3 .1 3 44 5(Ghatta........... 4 Wn.0 ) 1(1( 4 7,3.0 Brazil .......... '(0 490 0 - I ( 491).))GuLii nea ... ..... -1 1411 1 14.0 Caribh(-an Regiotr ..... I 20).0 I 210.11Ivory Coast ...... 3 56.6 - ~ 3 56.6 Chiile .......... 33.0 -1 31.1Liberia ,. ..... .... 3 33.3 1 611 4 39.1i Colombia ........ I 0).0 - W0.Mali ............ 1 (10 1 1110 Crista Rica ... 1...... - 39.11 I 19.0MaLuritania .......... i 6O I (1.0 Ec uadlor ......... 4 5,1.0 4 51.1)Niger ....... ..... -- 3 3115 3 1.1.5 El Salvador ......... 1 391 - 1 '39.01Senegal........... 2 21 .6 .3 I.S ) 34.1 Guatemala.......... I 14.5 -- 1 (4.5Sierra leione ....... 1 7 1 1 7.3 Haiti.............- 2 21.5 2 2-1.5Togo ............ I 01.1 0 1 9 5 2 60.5 1 loridluras.......... -- 3.11 1 140 1 17.0U pper Volla ... ...... _-I ___ 9.4 1 9.4 Jamaica ....... 1 6.0- 6.0

(In 5 9.1 0 $15 4 3450.1 Mlexico ........... 4 31(5.0 -4 3(5.0East Asia and Pacific Nic.aragua .1...... . ' 16.0 I 1 '.

I ii ................. 2 $ -17.0 3 - 2 1 17.1) Panama .1........ 12.1) - '12.11Indlonesia .9..~....... 1 517.11 9 517.0 Parafguay .......... I 4.11 1 4.0 2 0.0Korea, Republir of ...... 6 125.0 -0 3125.1) Peru ........... 174.1 - - 4 (,74.)Malaysia .......... 4 103 5 -I-.1 11..5 Trinidaid ani Tolbago ..... 7.0 - I7.11Philippines.o...... 26nO.0 - 260 0 Uruguay ........... 2 521.1)___ 52.10Thailand.6- 220.0 -- - 6 2 208.0 30 31,410.9 4 3 1 42 $1,440.4

'35 $1456.7 $ - 15 $1,450.5 TOTA\L .(........ . 41 3F4,97.) 7 3 $1,655.1 214 $,3.South Asia

Bangladc5 ..i ....... 6 3 (7.1 6 3 1B7.)BuI rma ....... 2 37.5 2 37.5Inrlia .. 3........ 2 (1.) 0 604.0 I1 8(04.0Nepal ......... 2 .34.0 2 .14.0Pakist1an ......... 50.11 I .12 1.6 51 17.1.6 ' Sl LIup I)IQMI 'nIt a nid amerni'dn I ni'ri r ,I iIrII lu d dIri Ii anrYI uu n t, huLit o nly thos r1c lua1,Iis'iv Is c,pa i, ', Ie n I i Srt Lanka .......... (?5 1) I 25 11op.'r,i Ion, air mdsunr, 1 frir nuniticr

4 _16 2.1 1 s 00. -27, 3, I149.2 Jii ot (lank/IDA nip'rnt ionn an', ounwtd inN i.inr i, a, (tintk ipcirtijour

Bank Loans and IDA Credits Approved in 1975/76, by Purpose"'(U5$ rnrl)ions)

BSankr D1A Totarl Biik DA) Total,

Agriculture Electric powerAlgllaI,ri,ao, Irrigation~ . ...... ............ $ 9 I) I 0.) Afgig a nI tan .... .......... ..... $ $ 10.0 I))A)g a I oar ........... ra l ,1 1)111 ). .. I , 15.0) 5)11,1. 7.5

Banglades-) aiea development ... ......... 161 1 16)) [Bolivia . ...... ........ .... .... 25.),- 25.))BSangrl adesh- irogatio ... .. '2), 2210 B3razil . . . .......... ... .... ...... 50, 5)))BSo) vi1-area dev eIIpin nt ..... 9.5 9.5 1)1azil ..... ............ ... 52-.)) 32.0)61i a1 -are,, devleopn1ient 12.09 Ili i SOa )dIor 39........... ...... 39 1)Srazi -agi cultural rescaih .......... ............ 4)) O9 IIC i .. .. .......... ...... 160 l6l0L3ornia-area dev eloprrin t 30). .0 N))l) 1 In i ... ............. ............ 001.

Burna-livesloc.k ... IrnoSa .. 37............9...... T 21)

13 Lirun d i-fisl ie er .... 0)) 6,1 I 0 n o eira ................... ..... .6)) O )

13urt11nd -plere11niaIr crop, .. 5. 3.2 Kenya. ......-....... . ... 6)0 - 3,59Cha1d-rrlig,)ion. .. 1.... 1 30 Liberia......... ............ 3) ) 1,

Ecuadoir-,lrea deve l opment .... 4)) 4.0 Mralyi;i .......... ............... 3 ,10 2Ecuaad),-crlop proc10111n19 sh(rag( . . .... ) 3)o \)rrr io..........i.......... .... 49,) 49r0Egy pt Arit, Republic 01 fl'Ull and, regvta1 .......... 51,.)) 5,.) NeCpal , .... . . ... ..... . ...- 2),.)) 2(0)

Egypt, Araib Reupbli o ci dainagi .. I ...... .... I0.0 4),0 31) Pk,3tn ........... ))....... .... 5, (1(

EthiWopia-ranarIland3 develop,men ...3 . ..... . ..... 2 II 27 Per'i ., ........ ....... ...... 3,,9 - )r6 03 i)i-aiea deveC)opi(l .... I....I 21)) I )1 P

1or'tLI)alI ............. ........ 36.)) - 33,

Garnibia, I) he area dcvrelipinu t......... . ....... 41 41 KoInalani i j ........ )) O rOil

( I tra a -area d1 velopirierul ........ I .II .... 2 I1) 2) 1 Iaui ky .......... 16)) - 90Gt,lia nia -p ernnII i i)a li o

3s. ............. .... H3.()- I13.9 i,)112 )11

Ci ,reCr. irrigalion I.. ... I.......403))) 4)1.1 IndustryHordurlas, -agriculrdiaal nodi ....... . ......... 3514,0 3.)) Algeria Irall indu,strry .................... 11 6r $ $ 4),))Indlia-irrig)ationC 333)..........3..... .... 150 I 33.)) Braz'il , ieoii/1 1111(1 1( 1 he as.....I....r. 510 0sInd(ia-cotton develikpnrent ... ... ..... ...... . .- 13)0 318.0 Blra -ioi and rti l , ill) ......t.........o 3,)) 61,ilndlia-c10p 3p11c1essinrg, lroi age .. ...... 25.)) - 2(1 Chit-niimin)), rrthet ehiarlive ....... 1.......)

nda-foresry ..... .... ........... 4.1) 4.03 ep Aiall KRpublhc Il-I 4)u )12,0IndonLi,si,-irrigatiron ....... .... . ....... )) '1r) Inda rrili e,rr an r6 1h1n11 l a) ..,.... - 393))5 31,)lindonesia-irrdr r ops extnsion .. ......... . ...... 222.9 . 22.)) Indornesia fertlizer ind I Cronialk~ ....... 7( 0 Ko, ea, RepLublic of-area dervelop091t11 .. ..... 11).II 6.), - 61).)) Peru-in, linin other1111 xta,ti ....... ...... 4)31 41)))Korea, Republic of-dlaiiy dev elrpn)n 3........I...5.0 - IS1)Roimania other inr)uaie ......... 2, 21)r 10I ibeuia area d

3evr oprenel........o ,1 ~ 6.0 Torgo-snriall indLr,iS 649 6a).0

Mralawi-area devCelopme t...... ........... 9. 2 9.2 1-ir key-p 1111,1) 31n 31)pe . ... .... 0)) 70_____

Malayia-aiaea developrnplent .......... 0...... 13.31Mexi, or-l v010ck 1 ..................... A25.0 123)3 M aintenance imports 9 i 5331 $ 90,0 6,06.0)

Nelpal -,read r veloproent ........ ...........- 0.1) 31)1 11( r..T 11 29)). S 2)1.6Niger-area dlevelopmncnt .... 31.. ........... 2.......... 19)),).Paik,3ist Iri-ir gatlonl ........... ........ )) 9.0 NoniprojectIlak)starii iriigatioil .... ......... ........ 140 341) Bnlal'lIIdes .... . ... ........... ... 9 $ 15)1 11 3)9.Palkistaur-rop 3110c1 11in1, 131o age ....-... ........ 2)0 2113 Korea, RO)iPUblic f .......... . ..... .i7l .31) 71.0)

1Phlippine111s-iri,gallon 41)) 4), ' laiigira, ....... ............ 4.))- 4))Phlilpp3iren-irrigatio 01 )33 31.0 S . 135 1,131) $ 2291)

'lii ilp13)111' ivetol .1 ..1.)21),, 2)1..5 Population and nutritionPh 1131pp110 1111 910 er1si)ng" sirlage .... 33. .3 I11.3 Brazin ........................ '1,0 9)l3omnr,,n a ig3atin .10 . ......... 601 ) I,)) J an, lar a ....... .... 6 68.Ronianria-iri galloni and airea Ill, lop1ient 113 .I.II. 41.3) 411.1) 2558 $ 25.))seorg~al-area rdevelop -m rt .......l.... ....... 20O 2.1) Technical assistanceSe Ilega -livesto0k .. ................. 4, 4. 2 l3an1gladeh.... ........ ......... S 7 .5 7

5, regal- atma dell opniilli . .... .... . 6Ilar ...... ...... .. .....rl5Som,,) ia Cla d)0v1 1113n111 .......... ...... 1) 111,loI0'i,I 13.(I I

Sornralia droughl3 re ablirtation ...... ....... . 331 13) Srrdan 490 4,Sri Lanka-othet agrirUllrUIO .13)) ...... ...... ... 2

23 0

1,111/all ............. . .... 1... 1.1 6.1)

Tanzanlia-dairy clevlor pillent . ...... ....... . ... 10.9 1113 -

I all/an, -plerennial u3ps ..... .. ... . P1.9 31) 0 I 11 $ 191) 32.313 hai)and-aiore r devIloipIrent . . . , , I... I2~II..I )'I(3 2l 3 Telecom municationsI hailand-irrr14atio .........1...... . .. 9111)1 9, Fiji ... ...... 3.......5.....).... 55( - 5 .1

3)hailand-)lestolo ...... .... ... 11) (1 Nige'r . .... ............. .......- 5.2 5_1Thrailandi-p1reillial c iops ... . .............. ... 5 -))( 9 Syrian 11 A ril R pubi ....L.......r.. ..... 28.0) - 28)1)Togo are,l rdevelopnient ..... ... ...... 9. .. ... o595 Thri an) ..... .......... * 2)6.0) 231.0

Ilalkcy l0,1Hto k.(..... ' 5 21.., TourismIppo el l, \ 1 agriwutrl 0 reI_lil ..... ...... 4 '1.4 Ganmbia -1 hc ... .......... .. . 40'1 41

Urutguav- 1iv-11' k ......... .. . . . .. . ..... 1- 15 17)) Jordan .. ........... (....-.. . 6 H

Y In on S \ad R c ,tI bI li - (rI, p1)r esIr g toI a g>1 g c.. .... - >.2 122 S5oroc, o . ........ 2 1W - 2 1.12

Y rnlerl Arahs R, hUhIIIll-ijri5atIIInl.- I11., 11 _____

i,mcn, 1P opl 0 Vi-nocratic Rcpublin HIa Ia 1voII111n111 ..... - 7.0) 7.1) Transportation 210 S EPL

TI I01 484C RAnglahd,>h-porl andl hdpplnri .- -~ 1 412 1 412

Development finance companies Rv Binin. PeopI>,' R3 oLA) I IlI da( - 1.11 '1)

lla,igla, leh ........ 12 9 '5 H 2 '12lots ana hjghwa~ . ............... 5.13

1311,1 . . ~~~~~~~~~~~~~~ ~ ~ ~~~~~~~~~135.1) Bri111azil hailhnao ........ ..... .............. ll

Canllb,an Reg.ion .. .. ....... . ... 20.01'12(1II11 Can i -ailly) ...... ............. .2 i Z. K

(.l5 nhp .r_ .. ....... ... _... ... 1.,M 1 l8 2 02 ORCongo lle pr' g12 biwoft -rala~ .......... ?, -

Egpt Arah I,pIublh LI ....... . .......... - 25.12 Ew1 1,.adIor ports and shlpp ng .1 ......... 3 5 13.)5

. .. I. ...... .....n.... . ... 10 @ 112 1 Egypt, SI al' Repubi 121)01-ports Ind) ohip in .........1. 45~.01- 51

India . .. . .... . ... .... . - - 4).) -. 41)1 (,hana-highwd\> ......... 81 IC( 21311

511(l) Coast .... ........ (ulnna h Iqh\\avs.. .... 1411 14.11

lboo Coast .. .. ........... .11 I .nd1utas porl and ohipping . .1.........). .5)

KSlIm a .... . ..... . MI11 10. I ndIo n Ls Ia -h Igh,vav, .. _.... O 111.I 1112

(.iwo, R, ptihl 1 or ....... 512 ) ,.51 Indon,sia pHI)) andi 1l1h 1ippirg ........ )..n.O))

k,or, , RIp h 111........... ..... )r 31112 lnl3onlOIja-pot (Iri 11 hipp11n, ......... 1411

51.10111 ~ ~ ~ ~ ~ ~ ~~........ (H. ,1 d . \ory na,t-highw,al ........... H 4111

\11>10 o ............ Korea. RIpLibli( ot-h1255120 . ...... 1121 i(

Mo I "co ....... .. . .............. ......... .75'11 II. Lberotho12higlh\vas .. .7.. 5

SudIan . . ........... .. MalIagaq ar-highwasN ... ........ 2211

ran/ania ..... ........ 1...... ... da5a ... h g2om. . ...... 12..1

TUni) I , . .......... ..... .. 201)1 2111 V ,alf h12 h4111 s> , .. . .. , ........ 11 111

1041111Y ........ .. _ .... 15.1 Sdian tan ia port, andl shipping. . .... ....... 11.1 811.

LarnhiIa ......... .. I,, I-, \ icaragna-pllrt, an) >hippinlg . ...... 5.11 )

Fducation 111( 2 141 0 76),P r I- l,1 a I .,e iaw s ..... ..-.. ..... 171.

Algt~r,I . ... . ............ .. 4~O 47 ~ lR'eva I a-hi 41 h a. .......... .... l I>1.1

13,igOla I I2 4 1 -),( 411j .o.n.......... I I25 .3

Cameooi . ......... ...... ... -I .12 - 17.01 on ,lhIla-[),it1 alt,) shiping .. . ... .... 5.2.

Guatermild . ............ .14.1 145 OaInl\n1. 1 01 oil . ........ 'Ur 9. 111 2311

1,11i . . . .. ...... 15 55 f,l,nl,adl anl F obapn-highwa , .1...........7

ndloneia .. ............. 37 lunioia h1 4120.00 112116 21)

Kcny, .a.......... .... . I))) 0 ,n,ri, l01 1 DernIIlraI c RI p11)1111 of1-po1 a-dIipi~ _ I

Nide,awl ... ....... ... . . . .41411 (I .... .... .........o...411.1) 411)

Moroo ... 1..2. ....... l5l Jlal aD 1151.114114 411

Nic araga, a.. .. .... Urbanization SI 1 701

ParagLnJ5 4.11.... .. . 41 1 S I l la y l) a 5, , . ...... 212.1 0$ It ,1

Ojerrra I on ............ ...... 3 ..Il.............12))- 32.1)

fh,Ildan,1 ... 1....... .-.. . ... 1.... W ater supply and sewerageFiin i,i. - F." rl(ili ~.. .... ... , .. ....... ........ ..... $ - ) $ 4

Parin ia ... .. ............ 1211 2.

041.0 go IIa ... .1.. ... . ......

141,1g 0110 .. ............. 451,) 4511)

ITnr 0t 1110n onu 111tIll or ILI)E 1>t1rtO pIC\ II'Ll, loan oi I rc(lit nor counted a, a epdix, cndin~~~~ op(S rition. 1)11 , 1141

These developments entailed-and still do- Improving access by developing nations as acosts and risks as well as advantages, however. whole to capital markets is a topic that hasPrivate lending is on terms set by the market, received extensive consideration over the yearsand interest rates were high during 1974 (they and in various fora. The issue was the subjectdeclined in 1975 and early in 1976). Maturities of discussion several times during the fiscalwere relatively short (five to seven years). year by a working group established by theHighly skilled debt management on the part Development Committee.(')of the borrowers is required, as well as the It was generally agreed by the group that adiscipline not to borrow excessively, and a determined effort through international actionwillingness to carry out adjustments which to activate, promote, and support the gradualmay be painful when the balance of payments process of making developing countries even-situation requires it. But borrowing does pro- tually full and equal participants in the interna-vide resources to the borrower, and the in- tional financial markets would involve:creases in outstanding debt, which are dis- -measures by governments of developingcussed in the next section, are a measure of nations (with assistance by internationalthese increased resources. development institutions, where appro-

It was the access to international capital priate), to create economic conditionsmarkets which made substantial balance of conducive to increased external mobiliza-paymentsdeficitspossiblefordevelopingcoun- tion of private loan capital includingtries other than the poorest ones. An increasing bonds;number of developing countries found them- -cooperation between international lend-selves considered sufficiently creditworthy to ing institutions and private parties in theobtain loans from private financial institutions. international financial communitv in im-In 1974 and 1975, a growing number of de- proving the conditions under which bor-veloping countries borrowed substantial sums rowing by developing countries in foreignfrom the international capital market. (For and international markets can be arranged;added details, see "Foreign and International andBond Markets" in the "Borrowings and Fi- . .

nace caperof this Report.) -measures by' industrialized nations andnance" chapter of this Report.) others with existing and potential capital

There were several reasons for such countries surpluses, to promote and increase thewanting to borrow heavily. Producers of min- flowv of private loan capital to eligibleerals, for instance, had high fixed costs which developing countries and measures to in-could not be reduced quickly at the onset of crease the access to national and interna-recession. Commercial agricultural producers tional capital markets.tended to adjust spending to income only grad-ually; in many cases, the lag was increased by External Public Debtgovernmental price guarantee programs, whichdampened the impact of world prices on the Continuing analysis of the external debt of 86incomes of producers. There were also strong developing countries"" indicates an appreci-pressures for growth within developing coun- able increase in external public debt in 1974,tries, which led governments to try 'o maintain the latest year for which reliable figures arethe momentum of investment even though available. During that year, total debt outstand-their external payments position had worsened. ing increased from $121,868 million to $151,399

Much of the new debt has been taken up by million. The S29,531 million increase was con-industrializing developing countries in order to siderably larger than that recorded in 1973use industrial capacity as fully as possible and ($20,640 million) or in 1972 ($14,180 million).maintain levels of investment in order to avoid In percentage terms, the rise of 24.2% in 1974the economic and social losses that would can be compared with increases of 20.4% inotherwise have occurred. Such countries acted 1973, and of 16.3% in 1972.in a manner similar to the more industrialized The increase in external debt during 1974, ofcountries. Though growth suffered and remains course, reflects increased current account def-slower than before, investment has been main- icits due to worsening terms of trade and re-tained. Thus, after a period of adjustment, it is duced demand for exports and an increase inreasonable to expect a return to growth rates the general level of prices. Consequently, largeclose to, although perhaps not quite so high as,those of former years.

Because the process of developing a sound, (s) Formally, the Joint Ministerial Committee of the Boards ofGoserniors of the World Bank and the international Mone-long-term relationship between a borrowing tary Fund (IMF) on the Transfer of Real Resources to Dev'e -

country and private financial institutions active oping Countries. The Committee, for the past two years,in a particular part of the international financial has consisted of 20 mermbes, gernerally Ministers of rinance,

appoieted by one of the countries or groups of countriesmarket is a gradual one, it is not surprising that designating a member of the Bank's Board of Executiverecent lending by major private financial in- Directors. For more on the Development committee, see

stitutions as concentated mainlyon higher- page 14 of the Bank's 1975 Arrnuai Report.stitutions has concentrated mainly on higher- (Sr For details, see General Notes to Annex Tables and Statis-

income developing nations. tical Annex Tables 4 through 9. 14

Bank and IDA: Lending by Geographic Region,]' 1964-76(US$ millions. Fiscal years)

(00) Nurnber of Operations

Africai2) East Asia South Europe, Latin America

[D | and Pacific(3) u Asia Middle East, and and the 1,600

. c o North Africa(4

) Caribbeanin

cin

_n rt 1,400 -

Cini~~~~~~~~~i N U

in ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1,200-in tO C\l~~~~~~~~\

_ 0o ,, . .o 4- .. 1,200 -

N NoO N . N _Xi 8 '- 1i000

tO s - S tO - -~ In NO1 _ I t OS 1

03~~~~~~~~~

in 8~~~~~~~~~~~~~~00

X ab) X U O U m G:)) 2) O~~m cU en X *s i: ~~in N i

N~~~~~~~~~~~~~~

()Ecuing Afhaisa anrn

44Mncudin Afghan stan 6nd I 400in~~~~~~~~~~~~~~~~~~~~~~l

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1 ons to past boroes,toaingC $62. miin in i 6-8 ndC '148 million in CO973 are inxncnlOudeidi

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changes from year to year must be interpreted This group of countries is reported to havewith care. Where the increase in debt in cur- once again borrowed in that market in appre-rent dollars is compared with other relevant ciable amounts in 1975 and the first months ofmagnitudes, for example, changes in imports 1976. This seems to have been as a result ofor exports, the increase, while large, is a good greatly increased imports, financing for newdeal less alarming. Although the account of projects executed by foreign firms, and somethese increases which follows is in terms of decline in the worldwide demand for petro-groups of countries, the incidence of external leum. It has become clear that the situationsdebt and debt service on borrowers is care- with respect to external debt of individual oil-fully examined on a country-by-country basis exporting countries differ considerably.in the Bank's continuing work. To some extent, At the end of 1974, outstanding debt of oil-debt service on debt incurred in earlier years exporting nations ($25,916 million) and higher-(which does not change when prices increase) income developing countries ($70,764 million)is less costly to the debtor if exports command was 63.9% of total debt outstanding, or almosthigher prices. This is revealed by the very the same percentage as at the end of 1973 andmodest increases or declines in the ratio of 1972. Of the combined amount ($96,680 mil-service payments to exports in 1974 for very lion) owed to all creditors by these borrowers,many countries."') The recession of 1974-75 $44,385 million, or 45.9%, was owed to privateand declining terms of trade aggravated the de- lenders. This amount was larger than in 1973terioration as it made imports more costly in ($33,131 million) and represented a largerterms of exports, and imposed difficult adjust- percentage (42.0%) than in 1973.ments on borrowers in 1975. These difficulties Of the lenders, those whose outstandingare only beginning to be mitigated somewhat loans increased at the highest rate were, as inby the upturn in economic activity in some in- 1973, private banks and other private financialdustrialized countries in 1975 and during the institutions (a large part of the "other" lendersfirst months of 1976. in Annex Table 4). They were owed $38,167

Another phenomenon in 1974 was that there million, or 25.2%, of total debt outstanding atwas an unusually large increase in the undis- the end of 1974.bursed balances of loans outstanding to devel- At the end of 1973, the figure had beenoping countries. These undisbursed balances $26,871 million and 22.1%; at the end of 1972,increased during the year by a total of $11,322 $18,961 million and 18.7%. The increase inmillion to $45,871 million. In 1973, the increase debt owed these private financial institutionshad only been $5,909 million. To some extent, in 1974 over 1973 was $11,296 million. Thisthe increase seems to have been a result of figure amounted to 38.3% of the total increaseborrowing in anticipation of immediate needs, in debt outstanding. Total debt owed themthe proceeds of which were available to meet was heavily concentrated in oil-exporting coun-the continuing deficits of 1975. tries ($4,935 million, or 12.9%) and higher-

Another development during 1974 was the income developing countries ($27,767 millionreduced rate of borrowing by oil-exporting or 72.8%). The debt to private financial institu-countries. This group of countries had in- tions of all categories of developing countriescreased its borrowing and external debt at a increased in 1974, but the amounts owed themrapid rate in the first three years of the 1970s. by middle-income and lower-income develop-In 1974, borrowings increased by only $2,329 ing countries remained modest ($5,464 million).million, or 7.9% of the total increase in debt, By comparison, debt owed to official bilateralcompared with $5,510 million in 1973, or creditors increased $9,290 million over 197326.7% of the increase in that year. and was 31.5% of the total increase. In 1973,

This modest increase in the debt of the oil- the increase in debt to official bilateral credi-exporting countries in 1974 included a more- tors had been less ($7,682 million), and was athan-modest increase (totaling $3,002 million) much higher percentage of the total (37.2%).by three of the countries, headed by Indonesia Debt owed multilateral creditors rose by $6,062($1,831 million). The two other countries million in 1974, as compared with $4,515 mil-whose debts rose were Algeria and Gabon. lion in 1973. These amounts were 20.5% ofOffsetting these increases were decreases in the total increase in debt in 1974, as compareddebt registered by four others (Ecuador, Iran, with 21.9% in 1973. Debt owed suppliers in-Iraq, and Venezuela), totaling $672 million. creased appreciably during 1974 over 1973 (byJudging by less complete information from $2,884 million). The increase was largely due tocreditor sources, the oil-exporting countries, as increased use of credits by oil-exporting coun-a group, had borrowed heavily in the Eurocur- tries and higher-income developing countries.rency market during 1973. In 1974, they bor- The debt in 1974 of middle-income androwed relatively small amounts in that market. lower-income countries was $54,719 million,

or 36.1% of the total. This represented an in-crease of $11,653 million during the year,compared with $6,458 million in 1973. Theshare of the total increase in debt by these

(°')See Annex Table 6. groups of countries was 39.5% in 1974, up con- 16

siderably from 31.3% in 1973. Of the increased Though the total number of beneficiariesborrowing by middle-income and lower-in- remained approximately the same in fiscalcome countries, $8,728 million, or 74.9%, was 1976, total project costs dropped by aboutborrowed from official bilateral and multilateral 7%O Project costs per benefiting farm familylenders. This was a much larger amount than in fell from about $1,550 to $1,400.1973, when their borrowing from these same Estimates indicate that the agriculture andsources increased by only $5,276 million. The rural development projects approved in fiscalshare of official bilateral and multilateral lend- 1976 will increase output by about $1,600 mil-ers in the increase was lower than in 1973, lion after the projects are completed. Of this,when it was 81.7%. This lower share is ex- two-thirds will be accounted for by food p,o-plained by a larger, absolute amount (com- duction; the volume of food crops might totalpared with the previous year) of new borrowing as much as 6.7 million tons.by middle-income and lower-income countries By 1985, however, the Bank's staff has esti-from private financial institutions ($2,341 mil- mated that the gap between domestic pro-lion); given the amount by which total borrow- duction of foodgrains and demand in the de-ing by these countries increased ($11,653 veloping countries might be on the order of 77million), a decline in the percentage of the million tons. And, unless domestic output ofincrease borrowed from official bilateral and food increases more rapidly in the next decade,multilateral lenders was registered. it is possible that many food-deficit developing

The flow of resources to developing coun- countries in South Asia and Africa may have totries from the Bank and IDA also rose greatly spend up to 30% of their projected exportduring the past three years. Bank and IDA lend- earnings on food imports. This compares withing to these countries for the period fiscal an average of 10% during the recent period of1974-76 totaled almost $17,000 million, com- food crisis.pared with slightly less than $9,000 million Increased production in food-deficit coun-for the preceding three years. Disbursements tries is the most rational way of meeting thetotaled $8,987 million for the period 1974-76, bulk of future food requirements. In general, aas against $4,266 million in fiscal 1971-73. The development effort on smaller farms is to beBank was thus an important source of long- preferred for reasons of both equity and effi-term assistance for development projects which ciency. Small farm agriculture typically involvesare designed to help meet the long-term goals those who produce inadequate supplies ofof the countries. Those goals include expansion food. It tends to be more labor-intensive. Andand diversification of exports, both of which there is increasing evidence that small farmsare of particular importance as economic re- with adequate supporting services producecovery begins in the industrialized world. The higher yields than do large holdings.Bank's activities also facilitated private lending There is little scope for increasing the culti-to these countries by strengthening the produc- vated acreage in countries which are short oftivity and creditworthiness of their economies. food. The main reliance has to be on increasingRural Development yields. Relatively small gains are required to

increase dramatically food production; an in-(In fiscal 1976, the Executive Directors of the crease in grain yield of only 0.1 ton per hectare

Bank approved more than 200 Bank and IDA in the developing countries would generate anprojects in 14 sectors, and involving more additional 30 million tons yearly, or more thanthan $6,600 million in commitments. In the a third of the projected food gap.regional chapters which follow, the breadth of In fiscal 1976, the emphasis in the Bank'sBank activities during the year is detailed. In agriculture and rural development lending wasthe following sections of this chapter, discus- on raising agricultural productivity through thesion is limited to a handful of topics upon provision of agricultural inputs. Nonetheless,which particular attention was directed during health, water supply, and other nonagriculturalthe year.) investments within agriculture and rural devel-

opment projects remained high, though belowA recent study of lending for agriculture and fiscal 1975 levels. Some 185,000 families will

rural development indicates that some 2.7 mil- benefit from water supply facilities; 70,000 fam-lion farm families-or about 16 million people ilies will be aided by the provision of health-are expected to benefit directly from Bank- services; 15,000 persons are to be provided edu-assisted projects for which commitments were cational opportunities; and electric power ben-made in fiscal 1976. The number of farm fam- efits will be extended to some 345,000 families.ilies likely to be direct beneficiaries of Bank- One point of interest - and of increasingsupported agriculture and rural development concern to the Bank-is that relatively few ofprojects approved in fiscal 1975 was virtually the benefits from Bank-assisted projects haveidentical. Preliminary estimates are that about so far been directed at nonfarm rural labor. In80% of these32 million people are from among developing countries, the landless often ac-the "absolute poor"; they belong to that target count for a third of the rural population. Theirpopulation group which includes almost 800 numbers are growing. In fact, the growth of themillion poor people who live in rural areas. nonfarm rural sector in general is reflected in 17

Bank and IDA: the fact that villages and towns in several casesLending to Countries with appear to be expanding as rapidly as the majorAnnual per Capita Income cities.That the proportion of rural people not di-below $200,1969-76" rectly employed in agriculture should be in-(USS millions. Fiscal years.) creasing is not wholly unexpected. The normal

path of economic development involves therelease of people from the pursuit of subsist-

U, ence, and their movement out of agricultureIli into other, often related, economic activities.cu 2,600- In less favorable circumstances, on the other

hand, it reflects the growth of populationwhich, in relation to a fixed land base, makes

2,400- it necessary for an increasing proportion ofc\j ( people to seek their livelihood in pursuits

N\ other than farming.,\ X The forced movement of people out of farm-

2,200- ing need not hamper development if agricul-tural productivity increases sufficiently to pro-vide a supply of food at affordable prices, andif other sectors of the economy experience

2,000- sufficient growth to provide productive em-ployment.

Infrastructure investments (roads, electric_ 800 power, the establishment of credit and input

supply services and social services) associatedwith rural development programs usually sup-port nonfarm activities peripheral to agriculture

mqR 1.600 more directly than they do farming itself. None-CD f.theless, more can be done to promote thecoN 0l growth of the sector than mere provision of

- , 1400 ~~~~infrastructure or direct investment in ruralservices as part of rural development projectsaimed at raising farm production.

N,<<:; tl t tr,,,Q,; Studies are currently under way in the Bank1,200- on the subject of employment creation and

.0. g °.lfH , income generation for nonfarm rural people.Issues under review include the scope for ex-

C<D 1,0 0A panding employment in this area and the typesco A O Oif;;X .000-of activities involved, including agricultural

linkages, both forward (processing, transport)and backward (manufacture of tools, input sup-

800- ply); mining and forestry development; small-scale rural industries; decentralized large-scaleindustries; and rural public works and infra-structure programs.

600

Urban Poverty

rico° ei > ;r # ,; fi i 400 In his September 1975 address to the Boardsco . f fr ier;-i r l- er it teof Governors of the Bank and the International

Monetary Fund, Bank President Robert S.2e e lt.McNamara stated that the Bank would help its_ ee200- member governments "in every feasible way"

to come to grips with the problem of urban

Some two months earlier, in July 1975, an< , w < interdepartmental task group was established' :,: =", 0 =,: 9° ' 9 to develop an Urban Poverty Action Program.

The work of the task group continues. But con-1 969-73 1974 1 975 1 976 siderable progress has been made in definingAn ual the nature and extent of urban poverty and inAverage tentatively estimating what the Bank's broad

strategy and goals might be over a reasonable(M)Excluding oil exporters with capital surplus, period of time. 18

The task group has emphasized that the both rural and urban poverty. But there is sub-problems of rural and urban poverty are clearly stantial evidence indicating that modern large-linked, and that if there is to be any improve- scale enterprise will not provide employmentment in the lot of the poor, rural and urban, opportunities for more than a small fraction ofthe towns and cities must, in the future, absorb the growing labor force. Thus, growth in in-and employ most of the increase in the labor comes of a large part of the nonfarm workforce. force will depend on growth of earnings op-

There are, at present, some 150 million urban portunities in the small-scale industrial, con-dwellers with incomes insufficient to cover the struction, trade, transport, and other servicelocal cost of minimum nutritional and non- industries.food basic requirements. Almost half of these The Bank's contribution to raising the pro-absolute urban poor live in South Asia; a ductivity of the urban poor can, at best, bequarter live in Latin America. Urban dwellers limited, considering the magnitude of the task.l lacking access to basic needs-adequate nutri- The number of new jobs, both directly andtional intake, safe water supply, and human indirectly associated with projects and sub-waste disposal - exceed the number having projects supported by the Bank in the industrialincomes less than that which theoretically enterprise sector, could amount to as many ascould meet basic needs. In effect, the failure of 700,000 yearly by 1980; this compares, how-urban delivery systems to keep pace with the ever, with an annual increase in the urban laborgrowth of urban populations is currently "im- force of over 8 million-on top of a hugepoverishing" an additional 40 million to 50 mil- backlog of underemployed people seekinglion people. In the absence of any clear em- higher productivity employment.ployment-based definition of the urban poor Thus, the success of any strategy to increase(there is no urban equivalent of the small opportunities for productive employment willfarmer), the target population for the Urban depend as much on an appropriate policy en-Poverty Action Program has been established vironment as it will on levels of investment.as the approximately 190 million people who The main elements of such policies might in-lack access to basic human requirements. This clude the removal of capital market imperfec-group is currently growing at the rate of about tions (such as artificially controlled interest11 million people a year. rates) which limit the capital available to small-

The fact that the target group is defined in scale, labor-intensive industries and skew tech-terms of access to basic services does not mean nological choices toward capital-intensity;that the appropriate attack on the problem of modification of legislation that discouragesurban poverty can be launched solely, or even labor use; and the introduction of realisticprimarily, by increasing this access through prices for the major market variables in thedirect action. economy - from foreign exchange to farm

Accelerated creation of productive employ- products. In addition, increases in the absorp-ment opportunities in nonfarm production will tive capacity of urban areas and the produc-clearly be central to the progress in reducing tivity and welfare of the urban poor can be only

Bank and IDA: Trends in Lending, by SectorIUS$ millions. Fiscal years.)

1974 1975 1976

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 1,627.6Development finance

companies 309.0 36.2 345.2 469.5 34.5 504.0 697.1 64.0 761.1Education 134.4 18.7 153.1 126.7 97.1 223.8 244.9 76.4 321.3Electric power 755.9 13.5 769.4 475.7 28.0 503.7 690.3 259.0 949.3Industry 309.1 109.7 418.8 665.3 125.0 790.3 501.0 105.0 606.0Nonproject - 235.0 235.0 195.0 325.0 520.0 75.0 354.O0(> 429.0(l)Population and

nutrition - 17.0 17.0 25.0 15.0 40.0 25.8 - 25.8Technical assistance 16.0 5.0 21.0 - - - 13.0 19.0 32.0Telecommunications 66.5 41.4 107.9 96.0 103.0 199.0 59.0 5.2 64.2Tourism 30.6 16.0 46.6 30.7 - 30.7 21.0 10.0 31.0Transportation 733.2 223.8 957.0 815.8 172.9 988.7 1,114.7 256.2 1,370.9Urbanization 68.0 45.0 113.0 70.5 22.5 93.0 79.6 - 79.6Water supply and

sewerage 149.2 24.5 173.7 128.0 17.1 145.1 246.5 88.1 334.6Total 3,218.4 1,095.2 4,313.6 4,319.7 1,576.2 5,895.8 4,977.1(2) 1,655.3 6,632.4

Details may not add to totals because of rounding.t') Includes $200 million for "Maintenance imports."(2) Includes $477.8 million lent on Third Window terms. 19

effective if governments encourage self-help of some $3,400 million-or 9% of total Bankactivities; accept low-standard, low-cost solu- and IDA lending. As with other sectors, Banktions to water supply, sanitation, shelter, trans- approaches to lending through DFCs haveportation, and health care; adopt positive land- evolved over the years. Initially, assistance wasuse policies; and rationalize the pricing of directed only to privately controlled DFCs, buturban services."1 ) now a wide variety of public, private, and

General lines of a possible global strategy to mixed institutions are being supported.(12) Theattack urban poverty have thus emerged dur- objectives of employment generation and sup-ing the year. They include: port for small-scale enterprise are now given

-emphasis in industrial development on the much greater importance. It is also likely thatuse of policies and technologies which will the Bank's future lending to DFCs will increas-increase direct and indirect employment ingly assist sectors other than manufacturingin relation to capital requirements and and tourism, and will make use of large multi-which will generate increased aggregate sector and multipurpose intermediaries.demand for agriculture and service sector Certain common themes in DFC lendingoutputs; have persisted through the years, however. To

in ps,secure Bank assistance, the sectors served by-increased productivity and employment in the DFC must be important to the development

the service and informal sectors, which process of the country; the DFC must have awill have to absorb the mass of the in- need for funds which can only be supplied bycrease in the laborforce; the Bank; the DFC's policies, procedures, man-

-efficient delivery of basic urban services to agement, financial structure, and programsa large and growing population at stan- must be soundly based and effective; and-dards and costs that can be afforded by an increasing concern-the DFC should con-the majority of the population; tribute to innovative activity in the sectors in

-increased efficiency of urban centers in which it operates.creating employment and in accomrnodat- The Bank believes that it should be flexibleing massive migrations of poor people in its lending to DFCs. It must be, for given thethrough the development and application variety in types of DFCs now assisted, and inof improved policies and management. their environments, which range from central-

The emphasis within such a strategy for any ized planning to highly market-oriented econo-country will naturally vary, however, accord- mies, the appropriate financial or policy guide-ing to such factors as national income levels, lines will naturally differ. Moreover, notions aspresent degree of urbanization, availability of to developmental priorities have changed overproductive land, and human resource develop- time, requiring, as a result, new responses andment. new ways of looking at and dealing with DFCs.

(Interest in man's urban habitat quickened Certain issues, however, repeatedly arise in theduring the year as a result of the focus of atten- Bank's DFC lending activities, and these weretion on the UN Conference on Human Settle- faced during the fiscal year to help furtherments (Habitat), in Vancouver. The Bank's role define and clarify the Bank's current approachin the Conference is described in the section in the field.IntherConence isodesratibe in the schati It was generally agreed that a major problem

"Other Activities") C facing the Bank is to find ways to assist the*Other Activities.") development of small-scale enterprise. Small-

scale enterprises are common in most econo-Development Finance Companies mies; they afford opportunities and experience

for entrepreneurs and provide balance to theOne key sector in Bank programs to alleviate ownership distribution of productive assets;

urban poverty will be that occupied by devel- and being usually relatively unskilled-labor-opment finance companies (DECs). intensive, they can generate substantial em-

The financing of DFCs has been the Bank's ployment. Action to accelerate their growthmajor mechanism for assisting medium-scale and improve the efficiency of their operationsproductive enterprises in its member countries. could directly increase the productivity of theIndeed, some $3,000 million in financing has urban poor. DFC lending provides the mostbeen provided to DFCs in almost four dozen rational use of Bank funds and manpower forcountries, and a five-year (fiscal 1976-80) lend- this purpose. Unfortunately, few Bank-assisteding program by the Bank foresees commitments DFCs were ever expected to tackle the prob-

lems of the smallest entrepreneurs.In addition, the problems and potential of

(1') See pages 19-20 in the Bank's Annual Report for fiscal 1975. financing small enterprises should be addressed(121) Including mixed commercial and development banks, more systematically than hitherto - either

"apex" banks that pass funds on to a network of interme-diaries, large government banks that undertake a sizable through special programs developed under therange of programs on behalf of the government, banks that auspices of Bank-assisted DFCs, or, throughspecialize in financing state enterprises, and multisectorinstitutions that perform not only a banking but also a pro- approaches involving more diffuse institutionalmoter/holding company functior,. patterns, specialized focus and resources, and 20

extensive technical assistance. The Bank is cur- excessive population growth. Debate continuesrently undertaking studies of the marginal im- concerning the relative effectiveness of variouspact and cost of assisting small enterprises, of strategies, policies, and programs to reducehow assistance should be put together to make fertility.its impact great, and of the importance of the In the late 1960s, the Bank created a staffsector in generating growth in the developing capacity to assist its developing member coun-countries. tries in dealing with their population problems.

Studies have also been undertaken on Since 1970, the Bank has financed 12 popula-another issue that will be of importance in fu- tion projects; these projects are in differentture Bank assistance to DFCs-the effect on stages of implementation; none has yet beenemployment of DFC lending to large as well as completed. Most of these projects are bothsmall enterprises. The data from the studies long-term and comprehensive. They include,have been somewhat inconclusive - indirect if assistance is not available from others, a wideemployment effects are often hard to ascertain, range of activities relevant to an effective pop-and sometimes run counter to the direct effects ulation program. Unlike many other agencies,-leading the Bank to believe that there is not the Bank does not provide funds for a "trainingyet any easy indicator emphasizing employ- only" program, a "research only" project, orment that can guide the selection of industrial an individual clinic or training center. Theprojects by DFCs. The Bank does believe, how- Bank wants to help build effective nationalever, that the pragmatic way of dealing with programs. Bank-assisted projects may also in-employment-creation through DFC lending is volve several entities in the course of theirto: (a) ensure that factor pricing in the eco- implementation-not only the national familynomic rate of return analysis done by DFCs cap- planning board (where it may exist) and thetures the employment aspect by giving labor, ministry of health, but often the ministries ofcapital, and foreign exchange their proper education, social welfare, information, andvalues in the context of the supply/scarcity agricultLure. Nongovernmental organizationssituation of the economy; (b) ensure that DFCs may also be involved. The multiplicity of theseweigh the use of alternative technologies or entities often requires that a suitable coordi-designs, when options exist, for improving a nating and implementing mechanism be set upproject's employment impact; and (c) support by the government to centralize responsibilitystudies in borrowing countries aimed at adjust- for project execution.ing technologies to make them more appro- The Bank's approach to its population workpriate to local conditions. has evolved and broadened over the past six

The Bank has also found that if DFCs charge years, but the basic questions concerning howunduly low rates of interest on their subloans, the Bank can be most effective in assisting theit usually restricts the amount of their re- developing world with its population problemssources; and that the limited funds available are still open for discussion. In Decembermay often flow to preferred ("safe") subbor- 1975, the Bank organized an external advisoryrowers to the disadvantage of "risky" borrow- panel to look at these questions afresh in theers whose enterprises may, in fact, have greater light of the Bank's experience to date and re-developmental impact. Generally, the Bank cent developments on the world populationbelieves that borrowers of DFC funds should scene. The five-member panel is chaired bypay a positive interest rate (in real terms) which Bernard Berelson, President Emeritus of thereflects the cost of capital in the country. Such Population Council.rates facilitate the mobilization of capital and During the year, the panel examined theits efficient allocation; they also permit ade- Bank's strategies, policies, and programs in thequate earnings to DFCs, enhancing their ability population field to determine what additionalto attract equity capital and to bear the costs actions the Bank might take to utilize its re-and risks of an active, promotional role. In the sources more effectively. In doing so, it hasfinal analysis, however, interest rate policies considered among others, the Bank's role inmust be judged in terms of a country's overall the international community and its relation-financial strategy and against the background ship with other agencies, its overall analyticalof the Bank's major objectives in lending and programming capacities, the strengths andthrough DFCs in the country. weaknesses of its traditional project approach,

and the political, socioeconomic, and opera-Population Planning tional conditions in the developing countries.

While the panel will be in existence for someIt has been recognized for some time that three years, its immediate major task will be to

high rates of population growth are partially publish a first report which will address itselfoffsetting or, in a few cases, completely negat- to these questions. In fiscal 1976, the panel meting the development efforts of many develop- three times. The panel held a two-day organi-ing countries. Over the past decade, no clearly zational meeting which was followed by threeeffective and uniformly applicable means have to four months of part-time work of interview-been developed to enable overpopulated de- ing and field visits to four countries in whichveloping countries to cope with problems of the Bank has committed funds for population 21

projects. The panel has also had discussions use would be in the new sectors and activities,with Bank staff, borrowers, and other donors including education, population, and rural andin the population field. The panel is expected urban development; and (d) though it wouldto produce its first report early in fiscal 1977. be used primarily to cover foreign exchange

costs, there would also be cases in which theIncreasing Efficiency provision for local currency financing would be

essential to the achievement of the facility'sThe effectiveness of the Bank's lending oper- objectives.

ations rests, to a great degree, upon the meas- It was also agreed that advances of up toures it takes, both before and after committing $500,000 would be permitted, and that the pro-funds for projects, to ensure that its funds are vision of interim financing did not commit theused in a timely and efficient manner. In fiscal Bank to the subsequent financing of the project.1976, ways were studied by which such meas- Project preparation (pre-lending) and super-ures might benefit the economic development vision (post-lending) activities are highly de-of the Bank's member countries even more pendent on the same factor: the degree tothan in the past. which the borrower is committed to the ob-

Project preparation is an essential element in jectives of the project. Borrowers' active par-the design of effective projects. Though it was ticipation, in both project preparation andoriginally expected that the Bank would not be supervision, is essential to ensure the successactively involved in project preparation, events of a project.soon overcame such expectations. In recent In discussing ways to make the supervisionyears, these events included the growth in Bank procss fficient, the Bank emphasizedmembership of poorer and less developed prcs'oeefcet h akepaiemembrshi of oore andlessdeveoped that any improvements made sense only if theycountries which have limited capabilities for were designed and implemented on the under-project preparation, and the increasing diffi- standing that a project is the country's project,culty in preparing and implementing the many designed to achieve the country's objectives"new-style" Bank projects concerned with in- and that the end product of the Bank's par-stitutional and policy change-especially in the ticipation is to help the country concernedagricLilture, education, population, tourism, increase its capacity to tackle development

Though the Bank-and others-responded problems.to these new developments by creating a num- Supervision is an essential element in theber of institutions and techniques to help pre- Bank's project work. No project has ever beenpare projects in a satisfactory way, it became entirexy free of ithmeBank's lending progral mapparent that the new systems were, in some has dramatically increased the size of its super-cases, deficient, and that additional resources, visi era t infcral 7 m th an 1,000available under simple and flexible administra- vision effort. In fiscal 1976, more than 1,oftive procedures, were needed to assist in proj- projects, representmig total investments ofect preparation. Two activities in particular, sut effort consume more thisneeded strengthening: (a) small, distinct tasks supervision effort consumed more than 200in engineering specified by the Bank and re- man-years of time. By fiscal 1980, the numberlated to gaps in project preparation (e.g., in- of projects supervised may have doubled.adequate economic analysis, or unexpected soil Both the borrowing country and the Bankconditions) which have to be filled before the have an important stake in the successful com-appraisal can be completed- and (b) additional pletion of a project. But the Bank realizes thatsupport for the entity in the borrowing country room for improvement in the utilization of re-responsible for preparing the project or for im- sources devoted to project supervision exists,plementing it. This need is particularly acute in and several measures designed to improve theeducation, population, rural and urban devel- supervision function are now either beingopment, and other "less traditional" projects tested on an experimental basis, or are beingwhere consulting firms are often not in a posi planned.tion to play the critical role in implementation Some of the measures require a "fine tuning"that they play in the traditional sectors. In of the supervision process-helping the bor-order to help correct the deficiencies in project rower improve its reporting techniques, chang-preparation, a Special Project Preparation Facil- ing slightly the composition of supervisionity was created during the year. In authorizing missions to permit a more thorough analysis of$5 million for the facility, it was agreed that: issues relating to institutional matters and proj-(a) the facility would be available only when ect benefits. expanding the role of some resi-alternatives for financing the activities in ques- dent missions, and providing for the increasedtion were not at hand; (b) it would normally be dissemination of accumulated experience.employed in poor countries which could not Others are more wide ranging.reasonably be expected to finance the activities As an example of the latter, the Bank is plan-out of their own resources pending reimburse- ning, in some instances, to deal collectivelyment out of the eventual loan or credit; (c) it with all the projects in a particular country, aswould be expected that the facility's greatest it has been found that a large proportion of the 22

main factors in influencing project implemen- comprehensive, and self-contained economictation may occasionally apply to all projects. surveys has been replaced by a dual systemFor example, most of the reasons for financial comprising brief updating documents-thedifficulties may, to a large extent and at least in Country Economic Memorandum-and a Basicthe short run, be matters of national policy Economic Work Program, a series of specialoutside the control of individual agencies or economic reports or sector studies which cul-projects. Similarly, a large proportion of the minate in the production of a Basic Economicso-called managerial problems may also be Report once every five or six years. During thegeneral to a country. Thus, problems found to past year, in addition to 52 brief updating re-be countrywide could be tackled through spe- ports and six Basic Economic Reports, 31 "spe-cial missions composed of experts in macro- cial reports" were produced, including severaleconomic or institutional problems, while mis- concerned with the spatial aspects of develop-sions for supervising individual projects could ment-a relatively new field for the Bank whichconcentrate on project-specific issues. In short, dovetailswell with the emphasis on rural-urbanthe supervision strategy to be followed in the relationships and on attempts to reach thecountry would be composed of several kinds urban poor. Other major topics of "special re-of supervision missions, and would be based ports" included employment, income distribu-on the types of problems to be tackled. tion, planning, and financial management.

Major changes have also taken place in the Particular attention was also directed to astructure of the Bank's economic reporting- review of the function of the Bank's Operationsthe analytical bedrock of Bank activities-in Evaluation Department. The Department re-order to focus more closely on operational re- ports on the efficacy of the Bank's operationsquirements. These changes will provide more evaluation system, and conducts independenttime and flexibility for the Bank's regional reviews, on a selective basis, of Bank opera-economists to use their professional skills in tions and activities. Full details of the Depart-the analysis of specific issues of policy relevant ment's function are included in the sectionto a member country or to the Bank's lending "Operations Evaluation" in the chapter, "Otherstrategy. The former system of regular, large, Activities."

23

i

Eastern AfricaPer capita

Population GNP 1974 Trend in Lending, 1964-76Current borrowers (000)(2) (US$)(')

(USS m lions. Fisca yearsBotswana 654 290 II 0 0 0 Wj Annual AveragesBurundi 3,655 90 (00) Number of OperationsEthiopia 27,240 100Kenya 12,910 200 Lesotho119 14Madagascar 8,562 180Malawi 4,958 140

Mauritius 871 580Rwanda 4,058 80Somalia 3,100 90

Sudan 15,227 230Swaziland 478 390 u5 .4Tanzania 14,351 160Uganda 11,186 240

Zaire 24,071 140Zambia 4,781 520 (. (3

F) Estimated as of mid-1974. 300 60C 900 1,200(2) Due to updating of the base period from 1972-74 to 1973-75,

the GNP estimates shown herein differ from those shown inthe Annex of the 1975 World Bank Atlas.

As in the past few years, the economic for- pound as compared with $1.20 a pound intunes of the countries of the Eastern Africa 1974). As a consequence, those countriesregion continued to be dominated by changes, largely dependent on copper, Zaire andmostly adverse, in the conditions in interna- Zambia, continued to be severely limited intional markets for primary exports, and by fiscal their capacity to import goods.adjustments necessitated by higher import Conversely, Mauritius and Swaziland, bothcosts. This was true even though the rate of of which heavily depend on sugar for their for-general price advances in the industrialized eign exchange earnings, continued to benefitcountries tended to level off during the year- from high prices. In the case of Mauritius, thoseat least as compared with the dramatic price prices partly offset production losses causedincreases in 1974 and the first half of 1975. by the cyclone which swept across the islandGenerally, however, all the countries of the in the spring of 1975. Among the countriesregion are still in the process of adapting to the whose exports are diverse, those exporting cof-higher costs of imported goods. In many cases, fee managed either to improve slightly thei-adaptation can be measured by the forced foreign exchange earnings or to counterba.reduction in the volume of imports, and by its ance, in part, price falls in other commoditiesconsequence-slower economic growth. (Ethiopia, Kenya, and Madagascar, for instance).

The delayed recovery from recession in the On the other hand, Tanzania's foreign ex-industrialized countries caused any recovery in change earnings fell somewhat with the dropprices for some major primary commodities to in sisal prices.be slower than might otherwise have been ex- In countries showing little improvement, orpected. In particular, the price of copper only even a further deterioration in their terms ofhesitatingly moved forward from its record trade (Tanzania, Zaire, and Zambia), per capitalow, reached during 1975 (about 56 cents a real incomes declined for the second year in a 24

row. These countries had to take drastic meas- tion, the lower level also reflected a sector andures to reduce their imports and limit govern- country composition of lending(1 ) differentment expenditures. Other countries, like Ma- from that which prevailed in the previous year.lawi or Kenya, continued to implement In fiscal 1976, the amount of concessionaryprograms of financial austerity which were funds provided through IDA and through theprompted by the consequences of large, un- Bank's Third Window ($257.3 million) exceed-favorable movements in commodity prices for ed conventional Bank lending by 40%. Withinthe past two years. The effect of these pro- this total, agriculture and rural developmentgrams, combined with production-oriented were given particular emphasis, with more

.agricultural price policies, was to reduce in- projects in support of this sector than in anycome disparities between rural and urban other. Substantial amounts of assistance wereconsumers. also directed to infrastructure, development

On the whole, climatic conditions in the finance companies, education, and technical.region were more favorable than in fiscal 1975, assistance.and agricultural production improved con-siderably in the previously drought-affected Co-financingareas of Ethiopia, Somalia, and Tanzania. InSomalia, a good harvest in the summer of 1975, The scope and need for project co-financingcombined with a spring crop only slightly be- have increased in recent years; while more proj-low average, allowed the production of maize ects are being prepared, their costs are stead-and sorghum to approach average levels once ily rising. In the Eastern Africa region, the prob-again, following the almost total failure of the lem of cost increases is especially burdensome,1974/75 harvests. since many of the countries are among the

The Partner States of the East African Com- poorest in the world. In an effort to mobilizemunity (Kenya, Tanzania, and Uganda) con- additional resources, the Bank has workedtinued their negotiations on a restructuring of closely with recipient countries and other aidtheir relations, and a high-level commission is donors to arrange for the co-financing of prior-expected to complete its review of the 1967 ity development projects.Treaty for East African Cooperation before the In fiscal 1976, co-financing amounted toend of 1976. Meanwhile, the Bank approved a about $148 million for 13 projects for which$15 million loan in February 1976 to the East Bank assistance totaled $254 million. The great-African Development Bank to support the ef- est part of this was provided by Arab oil-forts of the Community to promote balanced exporting countries, which are becoming in-industrial development in the region. As re- creasingly active in project lending, and aregards the Community common services, such making use of Bank project identification andas the railways, harbors, and posts and tele- appraisals as they expand their institutionalcommunications, problems of inter-regional capabilities for development assistance. Banktransfer of funds required to meet the obliga- appraisals were used, for instance, by the Arabtions of the corporations, including those for Bank for Economic Development in Africatheir external debt, and the operation and (BADEA), which provided $20 million of co-maintenance of assets of some of the corpora- financing for three projects in the region. Co-tions, have created difficult situations from financing for projects in the region was alsotime to time. Pending the outcome of the provided by such traditional donor sources asTreaty Review Commission, the Bank con- Germany, the United Kingdom, the Africantinued to provide technical assistance to, and Development Bank, and the United Nationsmediation between, the Partner States in order Development Programme. Major recipients ofto assist them in meeting the short-run finan- co-financing were Somalia ($48.9 million),cial and operational problems of the Com- Kenya ($36 million), and Zaire ($17.7 million).

'munity corporations. In May 1976, the Partner In addition, co-financing also complementedStates agreed to support the services and to Bank assistance for two projects in Burundimeet their external obligations in an orderly and Sudan, and one each in Ethiopia, Lesotho,

.and timely manner. Madagascar, Rwanda, and Tanzania.

Lending Operations Technical Assistance Increased

The level of Bank lending to the region in With the mounting need for additional aidfiscal 1975-some $656 million-was excep- flows and the severe shortage of skilled man-tionally high. In fiscal 1976, the level dropped power for the preparation and execution ofto $440 million, though the number of projects projects, the Bank increased its assistance inassisted declined by only four-from 35 to 31. economic planning and project preparationA major factor in the decline in Bank lendingwas due to delays-only overcome late in fis- (1) In fiscal 1975, for instance, one project in Zaire, for $100cal 1976-in lending to members of the East million, in the industry sector, accounted for 15% of total

Bank and IDA lending to the region. In fiscal 1976, threeAfrican Community (normal lending resumed projects in the technical assistance sector, totaling $11.5to the members early in fiscal 1977). In addi- million, accounted for only 3% of total lending. 25

from its own resources. It also coordinated and financed in the amount of $1 million by theexecuted technical assistance projects initiated Abu Dhabi Fund, should, over six years, doubleby others. fish production in the Burundi waters of Lake

Planning in Sudan, for instance, will be facil- Tanganyika. The project, for which $6 millionitated by a $4 million IDA credit designed in IDA resources was committed, is a compre-especially to finance a program of project prep- hensive fisheries development program de-aration studies and expand the capacity of local signed to: (a) provide the technical assistanceinstitutions to execute preinvestment work. and training, the fishing equipment (including

A $1.5 million technical assistance credit to catamaran boats), materials, and basic servicesBurundi will help the Government's technical necessary to increase significantly the produc-planning agency integrate the work of existing tivity and incomes of approximately 3,000 low-advisory teams and give it a more effective income traditional fishermen (about 1,500 areorientation to investment planning. Most im- now employed and another 1,500 will be train-portant, however, the assistance will help ed as fishermen) and their families; (b) expandbuild up a pipeline of well-prepared projects. and improve fish preservation facilities; and (c)A $6 million credit to Tanzania for a similar improve marketing facilities and extend thempurpose was designed to alleviate critical man- throughout Burundi.power bottlenecks. The project will provide for The Bank is also increasingly supportingpreinvestment and feasibility studies in indus- broad-based rural development programstry, mining, transport, and communications, which benefit large numbers of people at rela-and will create a "project unit" within the tively low cost, and which strike a balance be-Tanzania Investment Bank to assume overall tween food and cash crop production.responsibility for the project. Overseas training This strategy has been adopted in Malawi,of Tanzanians in project preparation and evalu- where it is known as the National Rural Devel-ation will also be made available. opment Program (NRDP). Following a Bank

mission in 1973, the Government decided toAgriculture and Rural Development extend, over the next 20 years, its integrated

agricultural schemes to cover all rural areas inThe number and the total amount of loans the country. A $9.2 million Bank loan on Third

and credits for agricultural development in Window terms was made during the year toEastern Africa, for the first time, were larger Malawi to help finance the preliminary activi-than those in any other sector. Assistance total- ties of the NRDP. In addition, the loan will helping $93.4 million was provided for eight proj- provide agricultural services to farmers in theects. Some projects were aimed at directly Karonga area in the relatively intensive fashionsaving or earning foreign exchange, e.g., by in- which has been the past pattern in Malawi.creasing the production of coffee in Burundi, With Bank assistance to the Karonga project,and dairy products and maize in Tanzania. extension and training services will be expand-Other projects went into newer directions. ed, as will animal husbandry and veterinary

For the first time, a fisheries project-in services. Rural roads will be constructed. Gov-Burundi-was assisted. The project, co- ernment services responsible for preparing and

Lending to Current Borrowers in Eastern Africa, by Sectors(US$ millions. Fiscal years.)

Annual Annualaverage average

1964-68(l) 1969-73 1974 1975 1976

Agriculture $ 5.3 $ 54.5 $120.9 $124.2 $ 93.4Education 9.7 23.4 - 65.0 64.1Industry (including DFCs) - 15.2 41.5 115.0 69.5Nonproject - 6.0 - 60.0 -Population and nutrition - - 12.0 - -Power 13.2 24.3 127.5 65.1 63.0Technical assistance - - - - 11.5Telecommunications 3.6 9.5 21.4 48.0 -Tourism - - - - -Transportation 38.3 76.7 82.1 131.2 82.6Urbanization - - 3.0 44.5 -Water supply and sewerage 0.2 4.4 - 3.5 56.5

Total $70.3 $214.0 $408.4 $656.4 $440.6

Of which: Bank $37.8 $107.2 $209.9 $344.4 $216.0"IIDA $32.5 $106.8 $198.5 $312.1 $224.6

Details may not add to totals because of rounding.(I) Excludes $3.9 million in loans to Rhodesia, and $20 million to South Africa.2) Includes $32.7 million on Third Window terms. 26

A Bank loan of $20 million is being used to helpfinance the cost of upgrading squatter areas inLusaka, the capital of Zambia. In some cases, homeowners are building new houses around theirold ones.

implementing the NRDP will be strengthened The responsibility for implementing the projectwith additional staff and, if necessary, by short- will rest, to a great extent, upon regionalterm consultants for specialized studies on authorities who were closely involved in thethe organization of national credit facilities. preparation of the project. Annual cash in-Through such a broad approach, this program comes of the participating families are ex-not only aims at raising agricultural produc- pected to increase by about 20%, or $42.tivity, but also at redistributing incomes in The focus of the Rangelands DevelopmentJfavor of the rural poor. Project in Ethiopia is on cattle, but the scope of

Two projects, where the focus is narrower, the project is vast. The project, aided by a $27demonstrate that narrow focus does not nec- million IDA credit (with co-financing of aboutessarily imply narrow impact. $5.5 million by the African Development Fund),

' Tanzania's National Maize Project seeks to is attempting to restructure Ethiopia's tradi-end the country's dependence on grain imports tional system of livestock production, in whichthrough self-sufficiency in maize production by animals are held as a source of subsistence,1982. Self-sufficiency would save Tanzania $10 prestige, and as a hedge against uncertainty.million yearly in foreign exchange. Taking part That restructuring is possible at all at this timein the project, for which an $18 million IDA is due partly to the fact that losses of aboutcredit was extended (BADEA is lending $5 mil- 15% have occurred in cattle herds as a resultlion towards the project's cost), will be almost of recent droughts;1,000 villages in high-potential, maize-growing Three areas in different parts of the countryareas. Seeds, fertilizer, insecticides, and herbi- (about 500,000 square kilometers, in all) will becides will be distributed to 380,000 participat- provided with an integrated program of rangeing families in the villages, and essential storage management and veterinary services, alongand transportation facilities will be provided. with improved roads and water facilities. It is 27

estimated that family incomes of affected the first such Bank activity in Africa. In additionherders might increase by about 40%, that the to providing cheaper and more reliable airdiet of 100,000 families will be improved services in a vast country with poor surfacethrough increased milk production, and that transportation facilities, the project will helpthe program will lay the foundation for a promote, among the regions of the country,sound development of the country's livestock greater administrative and social cohesiveness,economy. which is essential to integrated economic and

political development.In Lesotho, a $5.5 million credit (together

Other Activities, Projects with $1.5 million in co-financing from theUnited Kingdom) will help improve and recon-

Much of the assistance provided by the struct the road between Maseru, the capitalBank and IDA during the year was designed to and commercial center of the country, andhelp the governments of the region diversify Thaba Tseka in the central mountain region.their economies or expand exports. The devel- An unusual feature of the credit is that it alsoopment of development finance companies provides finance for the establishment of a(DFCs) is one way for a country to build up the labor-intensive construction unit. With its largeexport potential of its local industries and, at migrant labor force, Lesotho is highly vulner-the same time, overcome its dependence on able to conditions in South Africa. In earlyone or a few commodities for its foreign ex- 1974, Lesotho was faced with the sudden re-change earnings. This was one of the objectives turn of large numbers of migrant workers.of loans and credits made during the year for Most of these workers eventually returned toDFCs in Kenya, Mauritius, Sudan, Tanzania, South Africa, but the risk of similar occur-and Zambia. As an example, the Government rences, which may be of longer duration, re-of Zambia, anxious to diversify its copper- mains real.dependent economy, has recently established In order to be prepared for these eventuali-a development bank (DBZ) to play an impor- ties, the Government wants to develop a capa-tant role in the promotion of medium-scale bility to use labor-intensive techniques in theenterprises and the appraisal of industrial proj- execution of civil works. The labor-intensiveects. (The DBZ is essentially the only local construction unit to be financed by the projectsource of medium-term and long-term finance will train supervisory staff in labor-intensiveto the private sector.) With a $15 million loan techniques and labor management, formulatemade during the year, the Bank will be assisting procedures for large-scale adoption of labor-this new institution and the country's efforts to intensive techniques, and develop an inventorybroaden its economic base. of suitable projects.

A major increase in lending for education in An $8 million emergency allocation of IDAthe region took place in fiscal 1975, and Bank resources to Somalia-with co-financing frominvolvement in the sector continued through the Arab Fund for Economic and Social Devel-fiscal 1976 in the form of support for five edu- opment ($22.4 million), and the African Devel-cation projects (in Botswana, Kenya, Malawi, opment Fund ($5.5 million)-will help prepareTanzania, and Zaire). Activities assisted through 15,000 hectares of land for emergency settle-Bank financing ranged from the construction of ment by destitute nomadic refugees from thea new Education Broadcasting and Multimedia drought of 1973 and 1974. Three resettlementStation (in Kenya) to the on-the-job skill train- schemes will be located in the riverine south-ing of primary school leavers through the Bots- ern part of the country. It is believed that maizewana Youth Brigade Program, and the training and sorghum production could provide foodof managers for 7,500 ujamaa villages (in for about 35,000 settlers after the areas areTanzania). cleared of bush. In addition, the Kuwait Fund

The increase in fuel prices in 1974 made is providing $21 million to finance the rehabili-generation of electricity from hydroelectric tation of the country's northern rangeland areaschemes more attractive; a $63 million loan as part of Somalia's national drought rehabilita-was made to Kenya to help finance the con- tion program.struction of a third hydroelectric power station Zaire's urban population has tripled since theon the upper Tana River. This third station, country's independence in 1960, but few in-which will complete the planned Seven Forks vestments have been made in the water supplyhydro development on the Tana, is expected to sector since that time. In 1973, the Worldgo into commercial operation by 1979. A diver- Health Organization recommended a substan-sion dam with an integral spillway will be built, tial development program for Zaire's majortogether with an underground power station, cities; an IDA credit of $21.5 million, togetherdesigned for three 67 Mw generating sets. Sub- with co-financers, will help finance a majorstations and associated transmission lines will water production, storage, and distributionalso be constructed. project for six of Zaire's principal cities (other

In Sudan, a $20 million loan on Third Win- than Kinshasa). The project will provide waterdow terms and an IDA credit of $9 million will to about 1.5 million people, of whom about 1help finance a major domestic aviation project, million are now without access to piped water. 28

Per capitaPopulation GNP 1974-W estern Africa Current borrowers (000)(t) (US$)(,)

Benin, People'sRepublic of 3,027 1 20")

Cameroon 6,330 300Trend in Lending, 1964-76 Central African Republic 1,748 210

Chad 3,952 100(USS mi lons F scal years Congo, People's

Annual Averages Republic of the 1,300 470(00) Numberof Operations Equatorial Guinea 318 290

Gabon 528 1,960t | 59.B . t Gambia, The 506 170s ( <4.4) t Ghana 9,610 430= 177.5 Guinea 5,390 120

177.5 Ivory Coast 6,387 460a _(I9O . t Liberia 1,500 390

~ 2817 ; i Mali 5,560 802 (24y t Mauritania 1,290 290

Niger 4,480 120424.2 Nigeria 73,044 290(30) Senegal 4,869 330

- T____ Sierra Leone 2,911 190CD_ 450.1 1Togo 2,176 250

3 _ (34) i ; Upper Volta 5,760 90300 600 900 1.200 (5) Estimated as of mid-1974.

(t) Due to updating of the base period from 1972-74 to 1973-75,the GNP estimates shown herein differ from those shown inthe Annex of the 1975 World Bank Atlas.

(') Preliminary estimate.

Developments in the region during fiscal increased agricultural production was Niger.1976 were marked by generally good harvests There, the premature end of the rains, alongon the one hand and sharp deteriorations in with plant diseases, substantially reducedterms of trade on the other. The latter devel- groundnut production and kept productionopment, together with a slow growth in ex- below normal. Internal transportation prob-

'ports, eroded the region's capacity to import, lems, high marketing costs, and insufficientreduced public revenues and savings and, with storage facilities continued to hamper distribu-the major exception of Nigeria, cut down in- tion of food within many countries, however,

.vestments in real terms. and livestock production in the Sahelian coun-Favorable weather and, in some instances, tries continued to reflect the heavy losses

higher producer prices, contributed to good caused by the drought of earlieryears.harvests during the year in most countries, and While the overall short-term food supplyfood import requirements, largely financed situation has much improved since the criticalthrough grant aid, were not as high as in pre- drought-stricken years of 1972 and 1973, theceding years. Several Sahelian countries exper- medium-term economic outlook of many oil-ienced bumper crops, and filled their storage importing countries in the region was cloudedbins to the rim for the first time in many years. by serious increases in pressures on their lim-Rice production elsewhere in the region ited resources, resulting from adverse interna-expanded so rapidly that several countries tional price developments and slow exportreached, or were approaching, self-sufficiency. growth. The impact of increases in oil pricesA notable exception to this general pattern of in 1973 and 1974, as well as of accelerated gen- 29

eral price inflation of imports that followed, For example, the dollar costs per hectare ofhas now made itself fully felt. At the same irrigation projects in Chad and Niger havetime, partly as a result of the recession in about doubled within the past two years, asthe industrialized countries, the prices of many have the costs for road projects already underkey exports (cocoa and groundnuts, for in- way in Benin, Cameroon, and Mali. The in-stance) have stagnated or declined. Indeed, creases are also reflected in new or revisedthe import capacity of the region as a whole, medium-term investment programs preparedincluding Nigeria, fell by an estimated 10% to during fiscal 1976 in many countries in the15% during the year, as compared with fiscal region, including Cameroon, The Gambia,1975. The spectacular rise of Nigeria's external Ghana, Ivory Coast, Liberia, Mali, Mauritania,reserves during 1973 and 1974 appears to have Niger, Senegal, Togo, and Upper Volta.leveled off since mid-1975; external reserves While costs rose, the capacity of many gov-in the oil-importing countries have generally ernments to contribute domestic resources tofallen or have become negative; and the bud- investment finance-though there were sub-getary situation of several governments has be- stantial differences among them-was eroded.come critical. Good harvests reduced food import require-

Few countries in the region were able to ments in the poorer, landlocked countries. But,resist increased pressures for higher wages and at the same time, there was little scope to raisesalaries resulting from the strong import- government revenues (which depend mainlyinduced domestic price inflation that became on foreign trade), as the prices of their princi-a prominent feature of their economies for the pal agricultural exports, groundnuts and cot-first time since the early 1960s. Significant gen- ton, began to decline. In the better off anderal wage increases for public sector employees more diversified agricultural coastal countries,and organized labor shielded these groups the output of cash crops expanded and exportfrom the worst effects of inflation; but others, prices were somewhat better, especially forwith little or no protection-in particular, farm coffee. Prices of cocoa and timber, on the otherlaborers, unorganized urban workers, and the hand, were lower than last year, and the servic-unemployed-saw their already marginal living ing of debts on public borrowing from privatestandards decline. While benefiting from sources began to claim a higher share of avail-greater crop production, peasant farmers in able revenues. The revenue positions of themost countries had to be content with 1974/75 Western African mineral producers were, onprices for their produce. In general, however, the whole, much stronger than in the earlytheir situation improved. 1970s, but prices for bauxite and phosphate

Investment programs in Western African weakened during 1975, and production in somecountries have been adversely affected by the countries, including the petroleum producers,rising costs of capital equipment and construc- was less than had been expected at the begin-tion. This rise has been due both to increased ning of the year.costs of goods exported by industrialized During the course of the year, a number ofcountries, and to the rise in construction de- steps were taken to adjust economic policiesmand in the oil-producing countries with and the allocation of resources to the changingwhich other countries must compete interna- economic environment. Thus, as part of a gen-tionally for construction contracts and services. eral reform of the monetary systems in Franc

Lending to Current Borrowers in Western Africa, by Sectors(US$ millions. Fiscal years.)

Annual Annualaverage average1964-68 1969-73 1974 1975 1976

Agriculture $ 3.6 $ 30.6 $ 81.0 $323.0 5 92.2Education 4.4 26.7 4.7 32.4 28.3Industry (including DECs) 6.0 3.4 3.6 4.0 86.6Nonproject - 16.0(') - - -Power 25.2 23.9 2.9 - 1.8Telecommunications - 3.0 25.0 23.0 5.2Tourism - - - 9.7 4.0Transportation 20.4 68.7 154.1 23.1 232.0Urbanization - 1.6 - - -Water supply and sewerage - 3.6 10.4 9.0

Total $59.6 $177.5 $281.7 $424.2 $450.1

Of which: Bank $42.9 $117.8 $160.7 $303.7 $291.8(2)IDA $16.7 $ 59.7 $121.0 $120.5 $158.3

Details may not add to totals because of rounding.(') One rehabilitation loan of $80 million to Nigeria in FY 1971 has been "averaged" over a five-year period.(2) Includes $48.6 million on Third Window terms. 30

I ' sff~~~~~~~~~~~~~~~~~~~~~~~~~* w;00 ok;

A farmer's wife in Upper Volta pounds sorghum.About 100,000 families living on small farms arebenefiting from three IDA credits totaling $23.6million for rural development in Upper Volta.

Area countries, the basic central bank discount dow-instead of conventional-terms. Inrate was raised in July 1975 to 8%, bringing addition, the Bank provided supplementarythe structure of interest rates throughout the financing for unusually large cost overruns re-area more closely in line with world capital sulting from the rise in import prices and/ormarket conditions. The reform also helped currency realignments. The Bank's overall pro-stem the pressure for capital outflows asso- gram continued to meet the needs for long-ciated with previous interest rate differentials. term structural changes, with particular em-At the same time, to encourage small national phasis on helping the poor, both urban andenterprises, special facilities were authorized rural.at lower rediscount rates. Central government The Bank's economic work in fiscal 1976borrowings expanded in most countries (in concentrated on newly prepared developmentsome cases, to authorized limits); and some plans in seven countries. In many cases, thiscountries, having access to foreign capital work was in response to government requestsmarkets, borrowed quite heavily abroad. De- for an independent view of their sectoral prior-spite the weakness in agricultural commodity ities and development policies. The work alsomarkets, efforts were made to maintain the in- helped the Bank shape future lending andcomes of cash crop farmers, and producer technical assistance programs in the nationsprices increased in some areas. concerned. Though the emergence of severe

To help alleviate the resource squeeze cur- financial constraints in the public sector and inrently affecting many countries in the region, the balance of payments provided the focus forthe Bank increased its lending, particularly to much of the Bank's economic work, somethe poorest among them, i.e., those in the Sahel. special studies were also initiated on migra-Moreover, this increased lending was generally tion and urban unemployment as a first stepon concessionary terms through greater use of towards tackling the complex task of deter-IDA resources and Bank loans on Third Win- mining the possibilities for, and dimensions of, 31

Bank approaches to these issues in Western poorest people in Western Africa, the projectAfrica. features production packages-extension, ap-

plied research, credit, and input supply-aimedBank and IDA Activities at improving groundnut, millet, and cowpea

production, and at livestock development byIn fiscal 1976, Bank and IDA lending in the pastoralists whose herds were thinned during

region continued its upward trend, supported the Sahelian drought. It also includes expan-by substantially increased IDA credits and four sion of educational and training programs, aloans under the Third Window facility. Bank study for developing the irrigation potential oflending, on the other hand, declined some- the Goulbi River in Maradi Province, a pilotwhat. At $450.1 million, the year's overall lend- irrigation project, the construction of 80 kilo-ing exceeded last year's total, itself a record, meters of feeder roads, and the planting of 500by 5.8%. Compared with the fiscal 1969-73 hectares in fuelwood plantations. As many asannual average, the year's achievement repre- 37,500 farm families and 14,000 pastoral fami-sented an increase of 154%. Significantly, IDA lies will directly benefit.lending in fiscal 1976 increased even faster, by Initiating the development of one of Western165% over the fiscal 1969-73 annual average, Africa's major natural resources, the Lake Chadand by 31 % over fiscal 1975 amounts, reaching Polders Project in Chad, supported with $5 mil-a record high of $158.3 million. On an excep- lion in IDA resources, consists of the rehabili-tional basis, IDA granted supplementary credits tation and completion of the irrigation andtotaling $24 million to help finance the heavy drainage networks of Guini polder and the con-cost overruns on previously approved road struction of the same for Berim polder. (Aprojects in Benin and Cameroon. Loans on polder is a tract of low land, which, reclaimedThird Window terms amounted to $48.6 mil- from the water, is protected from water bylion, or 12% of the aggregate Bank and IDA dikes.) The project holds out the promise oftotal. Because there was no lending to Nigeria drought protection and high yields of foodduring the year, Bank lending on conventional crops, in addition to cotton. It will eventuallyterms, of $243.2 million, was down 20% from benefit 1,200 farm families, raising per capitaits peak of fiscal 1975. The number of projects income from $35 to about $145. A livestockrose from 30 in 1975 to 34. There were again project in Senegal, aided by an IDA credit ofseveral innovative approaches in lending. $4.2 million, represents a significant step to-

Features of the year's activities included: wards the rationalization of livestock produc-continued emphasis on rural development; tion through the settlement of nomadic pasto-promotion of local industry and small-scale ralists. The project will assist about 30,000enterprise; two large projects of regional im- rural families in eastern Senegal-75% ofportance; and increased co-financing activities. whom fall within the categories of absoluteIn addition, the program for the control of and relative poverty-to increase their in-riverblindness went ahead. Rural development comes and raise nutritional standards. A con-was advanced through projects not only in the trolled grazing scheme will be developed, andagricultural sector per se, but also in other sec- effective veterinary, extension, and credit serv-tors, such as education and, especially, trans- ices will be provided. Each of the 6,500 herderportation. In fact, virtuallyall transportation im- families benefiting from the grazing scheme isprovements benefit crop, livestock, and timber expected to nearly double (to $670) its annualproduction, so important for the livelihood of average cash income from livestock produc-most of the people in most of the countries of tion; some 24,000 other rural families, benefit-the region. Lending for agriculture and trans- ing only from the improved animal health serv-portation, taken together, accounted for two- ices, are expected to increase their incomesthirds of the number of projects, and 72% of from $250 to $310.the volume of lending. While this percentage An education project in Cameroon, assistedis somewhat lower than the average for fiscal by a Bank loan of $17 million on Third Win-years 1974 and 1975 (83%), it exceeded sub- dow terms, emphasizes development of agri-stantially the corresponding fiscal 1969-73 an- cultural and rural health education throughnual average of 56%. The remainder of the appropriately designed programs in new or ex-vear's activities was concentrated mostly in panded institutions. The project will help im-the industrial sector, which accounted for prove the management of agricultural educa-19.2% of aggregate lending, due mainly to one tion, increase the number and quality oflarge regional project. extension personnel, start a new program for

higher agricultural technicians, and supportPromoting Rural Development rural health training. Supporting agriculture in

its own right, the Second Highway Project inProjects of particular interest approved dur- Ghana also features an innovative approach to

ing the year included, first of all, the Maradi promoting the domestic construction industry.Integrated Rural Development Project in Niger, About one-quarter of the funds from the $18assisted by an IDA credit of $10.7 million. De- million Bank loan and $10 million in IDA re-signed to increase the incomes of some of the sources will be provided to the Bank for Hous- 32

ing and Construction (BHC) for on-lending to the development of small-scale industries inqualified domestic road contractors and quarry Ivory Coast. Three activities-woodworking,operators engaged in road improvement and car repair workshops, and bakeries-have al-maintenance operations. This channeling of ready been identified as suitable for projectfunds through the BHC for equipment pur- assistance. The loan will generate an estimatedchases and provision of technical assistance is total investment of about $9.4 million, thus per-expected to strengthen also the BHC as an in- mitting the establishment or extension of somestitution, and ultimately, aid long-term efforts 130 small-scale enterprises and the creation ofto stimulate domestic construction enterprises. about 1,600 jobs, especially in urban areas.The project involves the effective maintenanceof about 22,000 kilometers of main and feeder Co-financing Expandedroads.

The year also saw the approval of two large The Bank also increased its efforts to mobil-,projects with regional impact. A Bank loan of ize external resources through co-financing$60millionwill helpfinancetheCIMAO Clinker schemes. In fiscal 1976, official co-financersProject, jointly sponsored by the Governments incl:!ded Canada, France, Germany, Kuwait,of Ghana, Ivory Coast, and Togo. Based on Saudi Arabia, the United Kingdom, the Africanabundant limestone deposits 80 kilometers Development Bank (AfDB), the African Devel-northeast of Lome in Togo, a newly established opment Fund (the soft loan affiliate of theclinker plant will provide two-thirds of the AfDB), the Arab Bank for Economic Develop-three countries' requirements for cement man- ment in Africa, the European Developmentufacture in the early 1980s. CIMAO will also Fund, and the European Investment Bank. Co-assist the three Governments in arranging im- financing from these and private sources in-ports of clinker, thus making it a unique re- volved 16 of the year's 34 projects and totaledgional venture serving both anglophone and $407 million, or one and one-half times (155%)francophone countries. Seven bilateral and Bank and IDA assistance ($260.6 million) formultilateral agencies are participating in the the projects concerned. By comparison, co-project under the leadership of the Bank. The financing in fiscal 1975 involved 11 of 30Second Railway Project in Congo, aided by a projects, and added $53.5 million to the $85.7Bank loan of $38 million, is, in fact, the 1974-78 million of Bank and IDA assistance.investment plan of the Agence Transcongo- The program for the control of riverblindnesslaise des Communications which aims at, (onchocerciasis) in the Volta River basin en-among other things, financing investments to tered its second phase during the year. Thesatisfy traffic demands originating in a large disease, which is transmitted by a species ofarea of central Africa, including the People's black fly and ultimately causes partial or totalRepublic of Congo, the Central African Repub- blindness, has forced thousands of people tolic, southeastern Cameroon, southern Gabon move away from some of the most fertile riverand, to a lesser extent, southern Chad. Eight valleys in Benin, Ghana, Ivory Coast, Mali,bilateral and multilateral aid agencies have Niger, Togo, and Upper Volta. Of the 10 mil-joined the Bank in helping finance this im- lion people living in the affected areas, aboutportant project, the total cost of which exceeds 1 million have the disease, and at least 70,000$200 million. of them are blind or have serious sight impair-

ment. The primary objective of the controlDeveloping Traditional Enterprises program is to eliminate the breeding of the fly

in specific target zones. Aerial application ofThe approach to urban problems in Western larvicides to kill the vector started in 1974 in

Africa has so far largely been guided by studies parts of Ghana, Ivory Coast, Mali, and Upperof urban unemployment and the "informal" Volta. During the current second phase of the,sector. In the Bank's first project of the kind program, aerial application of the larvicidesin Africa, an IDA credit of $3 million was ap- has been extended into additional areas ofproved to help develop traditional enterprises these four countries.in Cameroon. The credit will enable the The Joint Coordinating Committee, whichBanque Camerounaise de Developpement to oversees the program, and is composed offinance the establishment and expansion of representatives of governments and interna-small-scale and medium-scale manufacturing, tional agencies, held its second meeting inand artisan, service, transport, repair, and con- Paris in December 1975 under the chairman-struction firms. About 80 such enterprises will ship of M.C. Candau, former Director-Generalbe assisted, representing total investments of of the World Health Organization (WHO). Theabout $11 million, and employment will be program, jointly sponsored by the World Bank,created for about 1,000 skilled workers. The the Food and Agriculture Organization of theexperimental project will explore the full po- United Nations (FAO), WHO, and the Unitedtential of the "informal" sector, in which entre- Nations Development Programme (UNDP), ispreneurs normally rely on traditional technol- designed to clear the way for eventual resettle-ogies and operate independently of institutions. ment and economic development of the poten-Similarly, a Bank loan of $5.6 million will assist tially productive areas affected by the disease. 33

East Asia and Pacific Trend in Lending, 1964-76(USS n lions. Fisca vears

Per capita Annua AveracesPopulation GNP 1974

Current borrowers (000) (1) (US$)(2 ) (00) Number of Operations

Cambodia 7,725 7110.8China, Republic of 1 5,710 810Fiji 564 840Indonesia 128,400 170Korea, Republic of 33,459 480Laos 3,250 70Malaysia 11,702 680Papua New Guinea 2,650 470Philippines 41,433 330Singapore 2,219 2,240 (24)South Viet-Nam 20,390 170M ^xThailand 41,000 310Western Samoa 160 300

(') Estimated as of mid-1974. 300 600 900 1.200(2) Due to updating of the base period from 1972-74 to 1973-75,

the GNP estimates shown herein differ from those shown inthe Annex of the 1975 World Bank Atlas.

(3) Estimated on the 1972-74 base period.

The past year was again a difficult one for sharp drop in the prices of its other major com-most countries in the East Asia and Pacific re- modity exports, and a rapid increase in importsgion. Nonetheless, their economic prospects at of investment goods. Thailand's balance of pay-the end of the year were not as gloomy as they ments changed from rough balance in 1974 to ahad been 12 months earlier. The economic dif- current account deficit of about $550 million inficulties which began in 1974 persisted, but in 1975, as the country's volume of exports re-less acute form. Among those difficulties, espe- mained unchanged and its terms of trade de-cially pronounced was the deterioration in the teriorated by 10% compared with 1974.terms of trade which, for most countries in the The Philippines experienced a fourfold in-region, started during 1974; the full impact of crease in its current account deficit, from $207the deterioration was felt through the whole million in 1974 to $860 million in 1975, as theof 1975. prices of most of its major exports (sugar, cop-

The combination of a slackening demand for per, and copra) fell drastically. The high pricesthe region's exports (due to the international of the Philippines' commodity exports had ear-recession), and a worsening in the terms of lier cushioned the effect of the substantial risetrade, led to an abrupt rise in current account in the prices of petroleum and other imports.balance of payments deficits for the larger Thus, in 1974, the Philippines' terms of tradecountries in 1975. The exception was the Re- actually improved by nearly 12%, but, a yearpublic of Korea, where the terms of trade de- later, they deteriorated by an unprecedentedterioration had occurred early and had already 33%.led to a deficit of $2,000 million in 1974. This Large balance of payments deficits posedwas reduced slightly in 1975. considerable financing problems for the coun-

The most dramatic change was in Indonesia's tries of the region. Short-term borrowings in-current account deficit, which increased from creased as the inflows of medium-term and$80 million in 1974 to $1,200 million in 1975, long-term capital failed to keep pace with re-reflecting lower-than-expected oil revenues, a quirements, and net international reserves 34

dropped particularly sharply in Indonesia and rose rapidly in some countries, however, al-the Philippines. In the Republic of Korea, net though not as rapidly as in previous years.international reserves, already greatly reduced In Indonesia, inflation was 20%, comparedin 1974, showed some recovery. with 40% in 1974; in the Republic of Korea,

Fortunately, the international reserves for 26%, compared with 42%. Philippines, Malay-most of these countries had improved during sia, and Thailand experienced more marked1973 and 1974, and the initial level of short- declines. In the Philippines, the rate fell fromterm debt was relatively modest. Also, partly as 33% to 10%; in Malaysia, from 17% to 5%;a result of recent international inflation, the real and in Thailand, from 24% to 4%. In all cases,burden of servicing medium-term and long- price increases slowed as governments, in

.term debt was not very heavy, as measured by their attempts to curb inflation, adopted morethe ratio of debt service to export receipts. conservative monetary and credit policies.

The foreign exchange difficulties experiencedby most countries have had inevitable effects Agricultural Developmenton economic growth rates. On the whole, how-ever, growth rates held up well, notwithstand- Although food supplies increased in the re-ing the existence of balance of payments prob- gion, the need for accelerated agricultural pro-lems and a slowdown of investment growth. duction continued to present a challenge toKorea had a growth rate of about 7.5% during the countries. To help meet this challenge, the1975, as compared with 8.6% in 1974; it was Bankdevoted32.2% of its lending in the regionable to continue growth partly as a result of in fiscal 1976 to agriculture and rural develop-successful efforts in finding new markets for its ment. In fiscal 1975, only 20% of Bank lendingexports (its major trading partners, the United was devoted to the sector.States and Japan, were both in the throes of Lending for projects in the region during fis-recession). cal 1976-no IDA resources were committed-

Similarly, in the Philippines and Indonesia, totaled $1,458.5 million, or $482 million abovegrowth rate declines were moderate in 1975, the previousyear's record total. Of that amount,in part because of higher agricultural produc- $101 million was on Third Window terms. Moretion. In Thailand, the growth rate rose from 4% projects (35) were financed than ever before.to 6% as agricultural output rebounded from (In fiscal 1975, assistance was provided to 24the drought-affected 1974 level. The growth in projects.) Agricultural lending increased twoMalaysia's gross national product (GNP), on the and a half times ($470 million as against $193other hand, was only about 2%, as the demand million) and there was a similar increase in thefor its major exports, rubber and forestry prod- transportation sector ($342 million as opposeducts, was affected by the international reces- to $124.4 million).sion. Agricultural output in Malaysia remained In the agricultural sector, the Bank has aidedat the previous year's level. ongoing government development programs,

As a whole, the region benefited from higher especially those which affect smallholders.agricultural output and improved food supply; An example of such an approach is a rubberharvests were generally good everywhere as a replanting project in Thailand. After rice, rub-result of better weather conditions and in- ber-which is cultivated in the country's south-creased supplies of fertilizer at lower prices. ern region-is Thailand's most important ex-

Despite the relatively favorable trends in port, accounting for almost 10% of exportagricultural production, incomes and employ- earnings. Many of the rubber trees are low-ment for the mass of the people tended to de- yielding varieties and are overdue for re-teriorate during 1975. This deterioration was placement. The Government is encouragingdue to some slackening in economic activity smallholders to replant by giving them financialand unfavorable price movements. Adjusted for help through a Rubber Replanting Aid Fund,changes in the terms of trade, per capita real in- set up in 1960. More than 160,000 hectares havecomes failed to grow in most countries. Though been replanted with rubber trees. A Bank loana large part of the impact of the worsening of $50 million will help speed up the processterms of trade was borne by the rural popula- so that all rubber trees can be replaced before

,tion (which earned less even though agricul- the end of their economic life. Cultivation,tural output increased), it was the urban popu- processing, and marketing practices will alsolation which suffered most because of rising be improved.unemployment. The loss in agricultural incomes One noteworthy feature of the project in-through deteriorating terms of trade partially volves the strengthening and expansion ofoffset gains made during the earlier commodity group marketing organizations. Through jointboom, and agricultural terms of trade during action, small groups of neighboring producers1975 often were only marginally, if at all, better may expect to improve the quality of theirthan in 1972. rubber, thereby obtaining a better price. The

The slower rise in import prices, the im- project will largely benefit smallholders. A typ-proved supply of foodgrains, and the reduc- ical producer, working on a 2.4-hectare plot,tion in major commodity prices helped reduce may expect a fivefold increase in income, frominflationary pressures in most countries. Prices $350 at present to $1,750 a year, when the 35

newly planted trees mature. About 30,000 jobs the Government effort to reverse the recentwill also be created annually beginning in decline in production through improved drain-1978/79. age and by preventing salt water intrusion in

In the Republic of Korea, the Government's low-lying coastal areas.national rural development program aims at Production of raw sugar has declined byhelping rural dwellers earn more from their 80,000 tons since 1970. The project, assistedlabor and at improving their living conditions, by a Bank loan of $12 million, will increaselargely through self-help efforts. The program, production of sugar cane by some 330,000 tonswhich also aims at creating more jobs, became by 1985. This amount would result in rawall the more important in the past two years, sugar exports of 41,000 tons, and should earnduring which time the country's economy, the country about $13 million in foreign ex-which depends on exporting finished products change yearly.to industrialized countries, was beset by the The larger part of the project involves theeffects of higher petroleum prices and the reconstruction of seawalls and the improve-world recession. ment of drainage on some 10,700 hectares of

To aid the program's infrastructure, the Bank low-lying coastal land. Drainage promises toapproved a $60 million loan to help finance yield quick returns and to increase sugar canethe construction of small irrigation schemes production by some 200,000 tons. About 2,600benefiting about 400 villages, improve farming farm families will benefit. The second part ofmethods in 35 upland areas, and establish the project involves the production of about11,000 fuelwood plantations. In addition, 850 130,000 tons of sugar cane in a settlementkilometers of farm and village roads and some scheme on Vanua Levu Island. About 3,2002,700 rural electrification schemes will be hectares of land will be cleared for plantingfinanced; about 2,000 villages will be provided in sugar cane. Settlers will be provided first-with dependable water supplies. Communal year subsistence loans, "sites and services" willlabor will keep the cost of the project low, and be provided for a new township, and almostpromote the self-reliance and the local enthusi- 200 kilometers of farm access roads will beasm necessary to the success of the program. built.The project will help to increase food produc- In Indonesia, the increasing concern for moretion, rural incomes, and employment oppor- effective utilization of the country's physicaltunities. As many as 4 million people in 15,000 resources was reflected in a $46 million Na-villages-about 30% of the rural population- tional Resource Survey and Mapping Program,will benefit. The benefits will result from the supported by parallel financing from the Cana-intensification of agricultural production, open- dian International Development Agency ($19ing up of new farmland, expansion of fuelwood million) and the Bank ($13 million).production, reduction in transport costs, and an As the lack of suitable maps and resourceimprovement in the quality of rural life. data has hampered project identification and

In Fiji, sugar contributes 10% to the coun- preparation in Indonesia, several earlier IDAtry's GNP and 70% of merchandise export earn- credits have included funds for aerial photoings. A recent project forms a major part of mapping and surveys in specific project areas.

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

Annual Annualaverage average

1964-68(') 1969-73"') 1974 1975 1976

Agriculture $ 28.8 $ 88.2 $189.5 $193.0 $ 470.0Education 2.4 34.5 38.5 22.5 93.0Industry (including DFCs) 14.1 36.7 88.5 285.0 230.0Nonproject - - - 100.0 75.0Population and nutrition - 3.6 - 25.0 -Power 29.0 86.2 85.8 147.0 125.0Technical assistance - 2.0 5.0 - 13.0Telecommunications 5.4 19.2 - - 31.0Tourism - - 41.0 -Transportation 25.7 103.4 188.6 124.4 342.0Urbanization - 3.2 - 40.0 58.0Water supply and sewerage 5.4 4.6 67.0 39.5 21.5

Total $110.8 $381.6 $703.9 $976.4 $1,458.5

Of which: Bank $108.6 $254.3 $603.4 $972.0 $1,458.51"IDA $ 2.2 $127.3 $100.5 $ 4.4 $ -

Details may not add to totals because of rounding.(1) Excludes loans of $375 million to Japan and $102.8 million to New Zealand.(2) Includes $101 million on Third Window terms. 36

An Indonesian midwife describes family planningmethods and the use of an intra-uterine loop deviceto village women in Bali. An IDA credit of $13.2million is helping the Indonesian Government carryout a major expansion in its family planningprogram.

This project, however, provides the first co- roads. These roads will form part of a networkordinated assistance in resource survey and of routes on which buses and other high-mapping activities, and is a first step toward occupancy vehicles will be given priority orsystematic ecological management of the ma- even exclusive use. Other measures, such asjor and relatively undeveloped resources of increased parking charges and minibus serv-Indonesia. ices, are expected to increase the efficiency of

Improved management of forestry, fisheries, the transport system. In addition, by providingand mineral resources is expected to resultfrom over 2,000 squatter households with improvedthe project, which also calls for processing and infrastructure services on, and tenure of, theirevaluation of data collected by the Earth Re- present lots, the project will help to improvesources and Technology Satellite (ERTS). urban housing conditions.

A $21.5 million loan, benefiting the KualaImproving the Urban Habitat Lumpur area, will help finance the first stage

Concern for conditions in rapidly expanding of a 30-year master plan to extend sewerageurban areas is reflected in the assistance for facilities and improve standards of health andtwqprojects in Kuala Lumpur, Malaysia. A Bank sanitation. Eighty-four kilometers of lateralloan of $26 million will support Government sewers and 26 kilometers of trunk sewers willmeasures to make more efficient use of existing be constructed; in addition, three new sewageand planned transport facilities in the metro- treatment facilities will be built. By 1981, somepolitan area. The loan will help pay for the 400,000 people (or 45% of the city's presentconstruction of 11 kilometers of new roads and population) will have sewerage service; this isthe improvement of 16 kilometers of existing double the number now served. 37

Bank assistance for the Philippines Govern- tematically this massive road improvementment's ambitious program for upgrading Manila program.slums points to a newer area of interest. Com- Thus, the project, for which the Bank loaneding up with inexpensive solutions to urban $130 million, will not only finance the rehabili-squatter problems is complex and difficult, par- tation of 1,100 kilometers of priority roads inticularly when it involves the upgrading of Java, Sumatera, Bali, and north Sulawesi, butconditions in situ rather than investing in re- will also assist the Directorate-General of High-settlement. ways to assess the extent of road improvements

With a Bank loan of $32 million ($10 million required in the most important traffic corridorsis on Third Window terms), Manila's Tondo and also to develop systems for detailed feasi-foreshore area will be improved with the pro- bility studies. Improved rehabilitation methodsvision of water supply, sewers, surface drain- will make frequent repaving unnecessary andage, roads, and footpaths for 180,000 people will release resources for work on secondaryliving on 180 hectares. One thousand serviced and tertiary roads.lots will be constructed on vacant land, and In the past year, the Bank continued to sup-school and health facilities will be provided; port industrial development through loans tohealth programs will deal with malnutrition and development finance companies in the Philip-endemic diseases. A total of 2,000 serviced pines and the Republic of Korea. In the latter,lots, together with community health and edu- small and medium-sized industries accountedcation facilities, and a small, first stage of an in 1974 for almost half the industrial employ-industrial estate for labor-intensive businesses, ment, over one-third of the country's merchan-will be established in the neighboring area of dise exports, and about 28% of industrial valueDagat-Dagatan. added. They look mainly to the Medium Indus-

In order to revitalize public transport serv- try Bank (MIB) as their most important sourceices (upon which low-income and moderate- of term finance, especially of foreign exchange.income families depend), the project will also At the end of 1974, 70% of the sector's enter-support low-cost improvements in Manila's prises were MIB borrowers. A Bank loan oftransport services and a better road network to $30 million-the first to this institution-willdivert port traffic away from congested urban finance about half of MIB's foreign currencyareas. commitments during the period 1976-77. About

50% of MIB's lending will be outside the twoTransport and Industry major cities of Seoul and Pusan, reflecting the

need for improved regional balance in indus-In recent years, the Bank has given increas- trial development.

ing attention to the needs of both the rural andurban poor. It has not, however, neglected in- Educationfrastructure and public utilities projects, whichcontinue to be essential to economic develop- Among developing countries, the Philippinesment. Bank loans in these sectors accounted for has some of the highest enrollment rates innearly 40% of the year's lending in the region. primary and secondary schools. However, the

A notable infrastructure project approved in supply of textbooks falls short of demand;fiscal 1976 is for highways in Indonesia. The public primary schools have an average of onlyBank's fourth highway project in the country, one book per subject for every 10 pupils. Ait is a part of a program covering about 12,000 $25 million Bank loan will assist the Govern-kilometers of high priority road links (slightly ment in improving its capacity for continuousless than one-third of the national and pro- development and supply of textbooks. Thevincial road networks). The project requires the project will support curriculum developmentdecentralization of road maintenance and ad- centers and establish staff development cen-ministration, and the development of local ters and selected high schools for testing newconsultants and contractors. Previous highway books, and training teachers in their use. Itprojects assisted by the Bank in Indonesia in- will also help finance the production and dis-cluded both construction and feasibility studies tribution of 27 million textbooks. Thus, thefor future work. This project goes much further project will improve educational opportuni-in that it aims at assisting the Directorate- ties, particularly for students from low-incomeGeneral of Highways to plan and execute sys- families.

38

South Asia Trend in Lending, 1964-76fUS$ mdifons Fisca years)

Annual Averages

(00) Number of Operations

~ (8.2)

479.5 -

Per capita (D8.-)Population GNP 1974 __l-_-__

Current borrowers (000)(1) (US$)(2) 657,9

Bangladesh 76,200 100Burma 29,521 100 1,189s6India 595,586 140 (24)Nepal 12,320 100 1 I l IPakistan 67,213 130Sri Lanka 13,393 130 7 -i

(X) Estimated as of mid-1974. 300 600 900 1.200(2) Due to updating of the base period from 1972-74 to 1973-75,

the GNP estimates shown herein differ from those shown inthe Annex of the 1975 World Bank Atlas.

Economic conditions in South Asia were themselves to conserve energy and to use sub-considerably better in the year ending June stitute fuels, such as coal for oil, also helped1976 than in the preceding three years-the to soften the impact of adverse terms of trade.severe blow dealt by the jump in the prices ofoil, food, fertilizer, and other essential imports Development Problems Remainin fiscal 1974 notwithstanding. The improved economic conditions of the

There were several reasons for improved past year should not, however, obscure theeconomic conditions. The most important was fundamental development problems of the re-the good monsoon, which resulted in ample gion. Nor should they be allowed to distracth'arvests in most countries of the region. Thus, attention from world price changes, which ag-after several poor agricultural years, food sup- gravated investment problems by causing largeplies increased substantially. deficits and by increasing the already heavy

- Larger food supplies, together with strong debt burden in the region. (The effects of thefinancial stabilization efforts initiated by most price changes can be measured by the suddengovernments, were effective in stopping or and marked increase in the region's aggregateslowing inflation for the first time in several trade deficit in fiscal 1975 to some $4,500 mil-years. Increased foreign financial support to lion, a fivefold increase overfiscal 1973.)the region from both multilateral and bilateral The world's most populous region, Southsources, including OPEC (Organization of Pe- Asia faces enormous development problems.troleum-Exporting Countries) funds for some The population has been increasing at 2% tocountries in the region, also helped efforts to 3% a year, and close to half the "absolutetackle terms of trade problems. poverty"(1) among the Bank's member coun-

It was possible, therefore, for the region toavoid the really severe reductions in essentialimports that would otherwise have been nec- m'5 "Absolute poverty," defined as the condition ot some 900

million people in the developing world who live on in-essary. Considerable efforts by the countries cmomes of less than $75 a year. 39

tries is concentrated there. Productivity is par- ditures (90% of its total capital formation, orticularly low and years of effort have shown about $12,000 million, is financed through itsonly modest growth in productivity. Few gains internal resources). Particular emphasis washave reached the very poor. placed on agriculture and energy. Population

India's foodgrain harvest, thanks to favorable control continues to be a special concern ofweather conditions, reached an estimated 116 policy, as reflected in India's large familymillion tons, 7% above the record reached in planning program.fiscal 1971. This was a welcome change from The economic situation in Pakistan was alsothe years since 1973, which had been among better in fiscal 1976, and overall growth is ex-the most difficult the country had faced since pected to be around 4%, compared with 2.6%independence. They were plagued with a suc- in the previous year. Agricultural growth iscession of poor crops, a dramatic, adverse projected to be around 3.5%, with record orshift in the terms of trade, and inflation. The near-record harvests expected in wheat, rice,bumper foodgrain harvest in the year created sugar cane, and maize as a result of improvedsome stress on the available foodgrain storage weather and, especially, the availability of morefacilities in India. (The problem also exists in water. Agricultural performance would haveBangladesh and, to a lesser degree, Pakistan been even better but for the poor cotton crop,and Burma.) which could be 20% to 25% lower than in

Other agricultural commodities also reached fiscal 1975, due to flood damage and weevilnew production peaks. In addition, more fuel, attack. Value added in industry was estimatedcement, coal, steel, and other basic commod- to have risen by 4.8% compared with 3% inities became available; transport problems also the previous year, as a result of improved agri-eased. The increased supplies, together with cultural conditions (so great is the weight ofcontrols on demand, enabled the Government agriculture on the economy) and an improvedto score a major success in controlling inflation. investment climate and credit availability.

Improvement in the industrial sector, how- Pakistan has succeeded in maintaining a ris-ever, was not matched to the same extent. To ing trend of real investment, in spite of adversestimulate the sector, the Government increased terms of trade and balance of payments prob-public investment and placed greater emphasis lems, and domestic resource constraints, whichon export promotion. Its investment, which had reflect a marked decline in the rate of saving.fallen in the previous two years, rose by about Fixed investment increased by 20% in real16% during the year. terms in fiscal 1975 and may have increased by

While India seems to have weathered its 18% in fiscal 1976. Much of the increase isshort-term problems, it continues to face ma- taking place in the public sector, but privatejor, long-term challenges. Population growth investment is also expected to rise with theremains high, and the task of implementing Government's clarification of its position onprograms to raise the productivity of millions compensation to be paid to nationalized indus-living in poverty continues to be difficult. In tries and assurances that no further nationaliza-response to these challenges, the Government tion is being planned. Growth in investmentsubstantially increased its development expen- in the past two years has been made possible

Lending to Current Borrowers in South Asia, by Sectors(US$ millions. Fiscal years.)

Annual Annualaverage average1964-68 1969-73(0) 1974 197; 1976

Agriculture $ 25.2 $108.1 $150.0 $ 400.1 $ 345.5Education 5.2 4.7 - - 12.0Industry (including DFCs) 40.8 77.1 110.0 367.5 170.0Nonproject 91.0 109.0 235.0 290.0 350.0Population and nutrition - 4.3 - 15.0 -Power 25.7 42.0 - - 283.0Technical assistance - 0.8 - - 7.5Telecommunications 6.6 50.3 20.0 57.0Tourism - 0.9 - -Transportation 51.2 71.3 100.1 60.0 114.6Urbanization - - 35.0 -Water supply and sewerage 10.4 11.0 7.8 - 66.6

Total $256.1 5479.5 $657.9 $1,189.6 51,349.2

Of which: Bank $ 71.0 $ 86.5 $112.0 $ 269.0 $ 260.0,2'IDA $185.1 $393.0 $545.9 $ 920.6 $1,089.2

Details may not add to totals because of rounding.(X) Excludes $222 million of commitments to Bangladesh which replaced commitments originally made to Pakistan.(2) Includes $195 million on Third Window terms. 40

by large inflows of foreign capital, mainly fromOPEC members, Pakistan consortium sources,the International Monetary Fund, and the Bank.

There are, however, major areas of concernin Pakistan's economic outlook. The attainmentof satisfactory long-run growth and a favor-able balance of payments requires a markedrise in agricultural and industrial production,combined with a substantial increase in do-mestic savings, so that exports can be expandedand reliance on foreign capital decreased.

Pakistan has ample potential for meetingthese requirements, but the task is a demand-ing one. A revival of more rapid agriculturalaevelopment is particularly crucial along thepromising lines of increasing the area and pro-ductivity of high-yielding foodgrain varieties,expanding and arranging for more effectivemanagement of the irrigation system, and pro-moting better use of water at the farm level.Agricultural programs along these lines, to-gether with expansion and improved efficiencyin the industrial sector, are expected to be in-cluded in a medium-term Pakistan develop-ment plan now in preparation. Meanwhile, steps have been taken for the near future to -

increase the share of domestic resources avail-able for development, to raise the share of de-velopment outlays on agriculture, to improveincentives for agricultural production, and topromote the expansion of exports.

Harvests Good in BangladeshA skilled worker in a Bangalore watch factory tends

Good news also came from Bangladesh. The a modern machine purchased with foreignGovernment of Bangladesh estimates that gross exchange made available to state financialdomestic product (GDP) increased in real terms corporations by the Industrial Development Bankby about 12% in fiscal 1976 and that per capita of India,which has received $65 million through aGDP rose by 9%. In fiscal 1975, the GDP in- Bank loan and an IDA credit.crease in real terms was about 2%, and percapita GDP fell by 1%. The success in fiscal1976 resulted from an increase of 17% in food-grain production (reducing imports from 2.26million tons to 1.5 million tons) and an esti- tribution systems and encouraging foreign pri-mated 5% increase in industrial output. Here vate investments, is a welcome sign.also, good weather played its part in the rise Economic conditions continued to be diffi-in agricultural production. A substantial de- cult in Burma, partly due to the problems ofcline in import prices (from their high levels mobilizing adequate resources to maintain in-of 1974 and 1975) and a larger supply of raw vestment. The budget deficit remained high,materials and spare parts contributed to higher mainly because of the financial difficulties ofindustrial output. Inflation was brought under public enterprises. Meanwhile, inflation, whichcontrol, and measures were taken to improve began in 1972, continued unabated.Bangladesh's competitive position in the inter- Important changes have, however, recentlynational jute market. taken place. Paddy production increased sub-

The country's tax revenues are still very low stantially in fiscal 1976, due not only to theand only about 12% of total revenues goes into improved weather, but also to the attractivedevelopment expenditure. Public enterprises prices offered to farmers. The export picture forare in need of reform and their pricing policies the year was improved as a result of increasedneed to be brought into line with capital needs. procurement of paddy, which accounts forThe Government is taking steps, within the more than half the total value of exports.limits of its resources, to deal with these prob- In a noteworthy change, Burma decided tolems. Recent measures to liberalize economic allocate a large share of capital investment toactivity and mobilize domestic resources are agricultural development. Also, new produc-efforts in the right direction. A greater role of tion taxes are expected to alleviate somewhatthe private sector, both in production and dis- the resource mobilization problem that has 41

plagued the Burmese economy for several manded a large share of Bank and IDA lend-years. ing. Nonproject lending to Bangladesh, India,

Sri Lanka was the only South Asian country and Pakistan totaled $350 million. Of totalnot favored by the weather during the past lending, some $1,089.2 million, or 81%, wasyear. A severe drought during the growing pe- on IDA terms.riod in the dry zone districts reduced paddyproduction by 30%. On the other hand, the The Bank and Food Productionproduction of tree crops increased sharply, asweather was favorable in the major tree crop- The Bank's objective, through its lending togrowing areas of the southwest. the agricultural sector, was not only to help

A continuing drop in Sri Lanka's birth rate South Asia keep food production ahead ofsince the mid-1960s-due partly to an exten- population growth, but also, to help smallersive family planning program assisted by the farmers and farm laborers achieve greater pro-United Nations Fund for Population Activities, ductivity and thereby increase their incomes.and to the country's extensive health care serv- Progress toward the latter objective continuesices and its high literacy rate-has been one of to be limited because of a variety of institu-the most impressive achievements in popula- tional and other problems. Nevertheless, thetion control among developing countries. development of some projects with particularSuccess in population control has had an im- emphasis on the rural poor has been possible,mediate impact by reducing the country's de- and economic and sector studies of Southpendency rate; such a reduction, if continued, Asian agriculture have been concerned withshould have favorable longer-run effects on efforts to identify projects benefiting the smallgeneral living and employment conditions. farmer and the landless farm laborer.

Fiscal 1976 heralded the beginning of Nepal's The Bank's assistance for programs in SouthFifth Plan, aimed at "people-oriented produc- Asia which will perhaps most help the region'stion on the one hand, and the maximum utiliza- longer-run agricultural development are: thosetion of manpower on the other." The imple- in India to help develop irrigation from bothmentation of the plan is likely to be difficult in the large groundwater potential and surfacethe face of a shortage of technical manpower water from a large number of river develop-and construction materials, as well as finance. ment works already under way; programs inAreas requiring special attention are: mainte- Pakistan to utilize the vast irrigation possibil-nance of the transportation network, foodgrain ities of the Indus River and other waterproduction, nutrition support, provision of resources; and several irrigation projects intechnical assistance for rural development, ir- Bangladesh.rigation, transport, and local development In India, programs in fiscal 1976 included:administration. (a) an agricultural operation of record size in-

The country did not experience any real im- volving $145 million in Bank resources (onprovement in living standards in fiscal 1976. Third Window terms) to help finance the im-Food production and population grew at about proved use of irrigation capacity in the statethe same rate-2%. Nevertheless, increases in of Andhra Pradesh; (b) a project designed todomestic savings and higher revenue collec- increase high-yielding seed production andtions, combined with a bumper rice harvest distribution in four states; and (c) extensiveand price stability in India, the country's major agricultural programs and studies by the Banktrading partner, helped ease inflationary pres- in the eastern region to complement Indiansures. Nepal is making determined efforts to efforts to develop regional agriculture develop-improve public management and to expedite ment capabilities.investment. The project in Andhra Pradesh will help com-

Bank and IDA lending to the region reached plete an extensive irrigation system begun ina record $1,349.2 million in fiscal 1976, up al- 1955. The project is expected to increase themost $160 million (and 13%) over fiscal 1975 irrigated area from the present 540,000 hec-amounts. The number of projects rose to 27, tares to 870,000 hectares, to improve waterup three over fiscal 1975. Project assistance was availability and management in four commandgreatest for agriculture and rural development areas covering 72,000 hectares, eventually to($345.5 million), reflecting the crucial need to nearly triple present grain production (nowmake the region increasingly self-reliant in about 1 million tons), and to increase the in-food supplies. Lending for power totaled $283 comes of 120,000 farm families, more than halfmillion, far surpassing the high of $91 million of whom operate farms of less than twoset in fiscal 1973. (One $150 million IDA credit hectares.was approved to help India finance a program Other operations relating to agriculture in-of investment in high voltage transmission.) cluded those which aimed at increasing effici-Industry ($170 million, including an IDA credit ency in the fertilizer industry and in rural elec-of $105 million to help increase fertilizer pro- trification. An IDA credit of $105 million to aidduction in India), and transportation ($114.6 the fertilizer industry will help meet part of themillion, $110 million of which was in support financing necessary to make better use of exist-of railway operations in India) also com- ing capacity in 10 fertilizer plants. The rural 42

electrification project, aided by a $57 million the Indus basin, including completion of theIDA credit, will benefit about 55,000 small- large Tarbela Dam."2 ' This dam is expected toholder farms by making power available for provide an assured continuous supply of waterirrigation pumping. In addition, power for for irrigation to help increase wheat produc-small industries will be forthcoming, and streets tion by about 1 million tons yearly. In addition,in some6,000villageswill be lit. the hydro facilities of the dam will constitute

In Bangladesh, the transition, in the early about a third of the total installed electricyears of independence, toward a manageable power capacity of the country. In fiscal 1976,economic situation has been difficult indeed, the Bank contributed $8 million to help financewith the provision of adequate food among the (along with co-financing in the amount of $41.6country's foremost problems. Two of the IDA million from six countries) the cost of repairsoperations in the past year were designed to and additional works at the dam, which washelp Bangladesh increase domestic food pro- seriously damaged in 1974 following the col-duction. The first was for training programs to lapse of a power tunnel. Owing to additionalraise the quality of agricultural extension and damage in 1976 to the outlet to one ofrural development services; the second will the irrigation tunnels, further repairs are stillhelp revitalize rural development institutions, required before the full potential of Tarbelaincluding cooperatives in seven selected loca- can be realized. A further involvement of thetions (thanas) in two districts. In addition, IDA Bank with development of the Indus poten-resources have been provided for raw mate- tial has been a $50 million Bank loan this pastrials and intermediate goods necessary to make year to help finance a 500 kv transmission sys-better use of the existing productive capacity tem for eventual interconnection of the Indusin Bangladesh. hydroelectric capacity with the thermal power

In Nepal, an $8 million IDA project is also facilities in the center and south of Pakistan.aimed at raising food production by assist- For the longer term, the Bank, as executinging the country's rural development efforts in agency for the United Nations Developmentthe hill regions. In Burma, the focus of IDA Programme (UNDP), is responsible for a com-was on livestock improvement, with a $7.5 mil- prehensive study to guide the allocation of fur-lion credit for development of pasture and ther investments in the potential of the Induswater supplies, better field services, milk proc- basin for irrigated farming and land reclama-essing facilities, and research and training. tion. Expected to take three years to complete,

The emphasis on food and agriculture in the program is being carried out by the PakistanSri Lanka was reflected in a $25 million IDA Water and Power Development Authority.credit for equipment and technical assistance Along complementary lines, the Bank also com-to increase food supplies, and to improve the pleted, in February 1976, a sector review offacilities necessary to maintain quality and em- agriculture, which considered policies and pro-ployment in the important tree crop industries. grams for improvement of agricultural support-Bank involvement continues in the large Maha- ing services and water management in both theweli Ganga project for diversion of irrigation medium term and longer term.water into the dry zone of north central Sri Emphasis on higher food productivity inLanka. Completed in early 1976, the first stage Pakistan has also involved the Bank in a $56.5will provide supplemental water to small- million project, to which IDA committed $23holders on 50,600 hectares of riceland to en- million, to upgrade the quality of seeds in Pun-able them to plant a second crop. The Bank jab and Sind by establishing a modern com-helped finance the first stage of this project, mercial seed industry. Insufficient supplies ofand project preparation for the second stage is quality seed have contributed to the slowdownnearing completion. in Pakistan's agricultural development in re-

cent years.Exploiting the Indus Basin

Among the largest of Pakistan's potential (2) Since the beginning of construction, the Bank has providedfor additional food production, as well as $33 million directly (and additional funds indirectly, throughthe financing ot the Indus basin works) to the $1,200 mil-power generation, will be the development of lion dam.

43

Per capitaPopulation GNP 1974Europe, Middle East, __________________i7tEuroPe, M iddle East, Current borrowers (00D)>') (US$)(2)

and North Africa Afghanistan 165,21245 710Cyprus 645 1,320Egypt, Arab Republic of 36,350 280

Trend in Lending, 1964-76 Greece 9,020 2,090Iran 33,100 1,250

USS milli-s. Fissal yeas.) Iraq 10,770 1,160

Annual Averages Ireland 3,090 2,320(00) Number of Operations Jordan 2,620 430

Lebanon 3,065 1,080>'>Morocco 16,291 430X s r ^^ a ,./= -^ Oman 750 1,660

Portugal 9,014 1,630Romania 21,029 980>4

djrD Jl 20tF::02E$at50Sj iqtjjr :g j:;tt2Xqt2C0iqS; Sain35,109 2,490Syrian Arab Republic 7,177 560Tunisia 5,460 650Turkey 39,167 750Yemen Arab Republic 6,379 180Yemen, People's

DemocraticRepublic of 1,632 220

Yugoslavia 21,155 1,320

300 600 900 1,200 (1) Estimated as of mid-1974.(2) Due to updating of the base period from 1972-74 to 1973-75,

the GNP estimates shown herein differ from those shown inthe Annex of the 1975 World Bank Atlas.

(3) Estimated on the 1972-74 base period.(') GNP per capita is calculated on the basis of the official ex-

change rate of 20 lei per US dollar.

During the past year, the countries of the ings of several regional countries exporting theEurope, Middle East, and North Africa region two commodities. However, for three principalcontinued to adjust to the major economic reasons, the foreign exchange reserves of theseevents of 1973 and 1974. Developments in the countries rose less than had been initially esti-region in fiscal 1976 were influenced by three mated. Demand for petroleum and phosphatesprincipal factors: major increases in financial was lower than expected as a result of the eco-resources available to several countries in the nomic recession in industrial countries; ex-region; the return home of migrant workers penditures by the countries increased greatly;from Europe; and the dialogue on commercial, and the prices of imports continued to riselabor, and aid questions between some coun- throughout the fiscal year.tries in the region and the European Commu- The terms of trade effects and the amountnities. These three factors, in combination, have of reserves accumulated have naturally differedgreatly accelerated economic activity and in- among countries. Though Iran, Iraq, Kuwait,dustrial expansion, and increased movement Libya, Qatar, Saudi Arabia, and the Unitedof labor and capital among the countries in Arab Emirates had capital surpluses, some ofthe region. them are now resorting to external borrowings.

The rises in prices of petroleum products and The Maghreb countries-Algeria, Morocco,phosphates in 1973 and 1974 resulted in very and Tunisia-as well as Oman, continued tolarge increases in the foreign exchange earn- have substantial external borrowing require- 44

ments. Nevertheless, in all these countries a Syria. The accords with the Maghreb countriesmajor expansion of investments has taken included provision of financial assistance, guar-place, particularly in infrastructure and indus- antees of access to European markets for in-tries utilizing domestic natural resources. dustrial products, and measures for normalizing

Other countries in the region, and including the social status of migrant workers. The con-Egypt, Greece, Portugal, Spain, Turkey, the tinuing Euro-Arab dialogue, initiated earlier inPeople's Democratic Republic of Yemen, and the year by the Communities and the membersYugoslavia, were severely and adversely af- of the Arab League, is designed to establish afected by recent economic events. The difficult basis for future economic relations betweeneconomic situation of the seven countries was the two groups.alleviated, to some extent, by the availabilityof external capital from multilateral and bi- Economic Trendslateral sources and from commercial sources.

.The pace at which the required economic ad- The region is, of course, influenced econom-justments are undertaken depends to a con- ically both by external factors and by measuressiderable extent on the availability to them of taken by the countries themselves. Because ofincreased amounts of external financing. the strong economic links between the coun-

tries in the region and the industrialized coun-International Labor Migration tries of Europe, the pace of economic recovery

and the nature of economic adjustments un-Economic recession was the proximate cause dertaken in the latter group of countries will

for the severe restrictions placed by the labor- have a strong influence on future economicimporting countries of the European Commu- developments in the former. Specifically, anities on the employment of migrant workers. quick recovery from recession in Europe wouldThe restrictions reduced the prospective growth affect the prospects of exports (in particular, ofof workers' remittances, an important compo- manufactured goods) from many countries innent of the total foreign exchange earnings of the region, and the availability to them of ex-such countries as Greece, Portugal, Spain, Tur- ternal financing.key, and Yugoslavia. (All five countries also The nature and scope of World Bank ac-experienced significant deteriorations in their tivities are changing in response to economicterms of trade.) The closing off of the "safety developments in the region. Bank-assisted in-valve" of migration is adding, in these coun- dustrial and agricultural projects are increasing-tries, and others, similarly situated (Algeria, ly emphasizing the provision of job opportuni-Morocco, and Tunisia), impetus to their on- ties and improvements in the living conditionsgoing efforts to create additional jobs, initially of lower-income groups. In the past two years,through rapid industrialization. the Bank has also expanded its co-financing

The restrictions on migration by European and technical cooperation activities to helpcountries coincided with a growing demand make more efficient use of available financialfor labor by the Gulf countries. There are in- resources.dications that migration of labor from such Among the major sources of co-financingcountries as Egypt, Jordan, Syria, and the Yemen for projects in the region during fiscal 1976Arab Republic has accelerated, and that re- were the European Investment Bank, the Fed-ceipts of workers' remittances by the labor- eral Republic of Germany, the Kreditanstaltexporting countries have increased. The bless- fOr Wiederaufbau (Federal Republic of Ger-ings have not been unmixed, however. The emi- many), Japan, the Norwegian Agency for Inter-gration of workers, and particularly of skilled national Development, the Arab Fund for Eco-workers, may affect the development of cer- nomic and Social Development, the Abu Dhabitain sectors in the labor-exporting countries. Fund forArab Economic Development, Kuwait,the fulfillment of the expanded development the Kuwait Fund for Arab Economic Develop-programs financed, in part, by capital flows ment, the Libyan Arab Foreign Bank, the Saudifrom the Gulf countries, might thus suffer with Fund for Development, the United StatesIhe emigration of skilled manpower. Agency for International Development, and

Some of the countries in the region, in par- the United Nations Development Programme.ticular Greece, Portugal, Spain, Turkey, and More than a quarter of all Bank projects in theYugoslavia, have had significant economic links region during the year involved co-financingwith the European Communities for a number with other lenders. Additional resources andof years. In fiscal 1976, particularly noteworthy contributionsfrom co-financers, which amount-was the opening of negotiations on Greece's ed to about $718 million dollars, were distrib-accession to full membership in the Communi- uted among 10 borrowing countries.ties, and the provision, for the first time, of Examples of the Bank's co-financing activi-financial assistance to Portugal. In addition, as ties include a $21.8 million grain storage projectpart of the Communities' so-called "Mediter- in the Yemen Arab Republic, which is beingranean policy," agreements were concluded assisted through IDA resources ($5.2 million)with the three Maghreb countries, and discus- and the Saudi Fund ($11 million). A Bank loansions are under way with Egypt, Jordan, and of $52 million, along with $35 million from 45

the Arab Fund, will help finance the modern- for privately owned small-scale and medium-ization and expansion program of two textile scale industrial and tourism projects. The proj-manufacturing complexes in Egypt. A Bank loan ect will help upgrade some of the 7,000 small-of $49 million to Yugoslavia acted as a catalyst scale industries and handicraft shops, the greatin securing co-financing of $245 million from majority of which are in urban areas. IDB hasagencies in Czechoslovakia, Hungary, Kuwait, only recently established an experimental pro-and Libya for a major oil pipeline project cost- gram-the first institutional one of its kind ining $377 million. Jordan-of financial and other assistance to

this subsector which employs 11,000 people.Bank Activities, Fiscal 1976 Assistance through the IDA credit will also be

provided to the medium-scale industry sub-The Bank and IDA helped finance 45 proj- sector, which consists of some 475 units em-

ects in 16 countries in fiscal 1976; total lending ploying about 6,000 persons. The importanceamounted to $1,485.6 million, or about the of medium-scale industries in Jordan is meas-same as the previous year's figure of $1,434.2 ured by their export-earning ability and poten-million. The number of projects assisted by tial, as well as by their role in upgrading thethe Bank and IDA increased by two. In keeping incomes and entrepreneurial skill of the peo-with the Bank's policy on lending to higher- ple involved.income countries, there was no further lending A second credit to Egypt's Bank of Alexan-to Finland and Israel during the year. dria is designed to stimulate the expansion of

Lending for industrial and agricultural de- small-scale and medium-scale private enter-velopment accoLinted for 23.4 % (11 loans) and prise and of medium-scale enterprises in the27.1 % (11 loans or credits), respectively, of the public sector. A minimum of 65% of the $25total for the region. As in the recent past, the million credit will be used for private sectorregion remained one of the major recipients financing. Under the first IDA credit, 50% of(25%) of Bank lending to industry and devel- the amount, and 80% of the number of loans,opment finance companies (DFCs). were made to the private sector.

Help for Industries Least Developed Countries

The Bank's assistance to the industrial sector Lending to the three "least developed"is increasingly focusing on the development of countries of the region-Afghanistan, Yemensmall and medium-scale industries. Arab Republic, and the People's Democratic

A $4 million IDA credit to the Industrial De- Republic of Yemen-increased substantiallyvelopment Bank of Jordan (IDB) is providing during fiscal 1976. IDA operations in thesesupport to the only institutional source in Jor- three countries emphasized the developmentdan for mediLum-term and long-term finance of the agriculture sector. Of the $68.7 million

Lending to Current Borrowers in Europe, Middle East, and North Africa,"' by Sectors(US$ millions. Fiscal years.)

Annual Annualaverage average1964-68 1969-73 1974 1975 1976

Agriculture $ 14.7 $111.2 $ 184.0 $ 395.3 $ 402.0Education 5.5 34.3 41.7 56.4 88.9Industry (including DFCs) 46.4 133.9 444.2 367.3 348.0Nonproject - - - 70.0Population and nutrition - 4.3 5.0 -Power 16.9 70.6 294.5 215.6 258.5Technical assistance (including

preinvestment studies) - - 2.8 -Telecommunications - 31.6 - 30.0 28.0Tourism - 10.8 5.6 - 27.0Transportation 95.2 141.1 254.4 248.5 195.2Urbanization - 0.5 60.0 -Water supply and sewerage 0.7 42.9 29.2 51.1 138.0

Total $179.4 $581.2 $1,321.5 $1,434.2 $1,485.6

Of which: Bank $158.3 $504.9 $1,229.5 $1,264.1 $1,341.9("'IDA $ 21.1 $ 76.3 $ 92.0 $ 170.1 $ 143.7

Details may not add to totals because of rounding.(1) Excludes $497 million in early loans for European reconstruction and $1,273.6 million in loans to nine higher-income countries

which are no longer borrowers. Includes loans to Finland, Ireland, and Israel which have continued to obtain some of theircapital needs from the Bank. Loans to these countries totaled $277.5 million in 1969-73, $60 million in 1974, $55 million in 1975,and $30 million in 1976.

(2) Includes $75 million on Third Window terms. 46

Some 2,750,000 Egyptians are benefiting from threeBank/lIDA operations in support of the country'snational land drainage program. Here, a tile layingmachine, which also digs trenches, operates inthe Nile delta.

provided the three countries through IDA cred- ing also being provided by the Kuwait Fund forits, $47.5 million, or 69%, was devoted to agri- Arab Economic Development, will help gen-cultural development. erate significant increases in agricultural pro-

-In Afghanistan, the Khanabad Irrigation duction (mostly cotton, grain, and vegetables),Project, for which a supplementary credit of and will result in higher incomes and more$10 million was provided, will benefit about jobs for 3,700 farm families and 2,500 farm54,000 people in the northeastern part of the laborers in the Wadi Zabid area east of thecountry by creating the irrigation infrastruc- Red Sea coast. The Wadi Mawr feasibility studyture to serve about 30,000 hectares of land. under the project is expected to lay the founda-

-Also in Afghanistan, a second livestock tion for the development of about 60,000 hec-project, for which an IDA credit of $15 million tares with a major agricultural potential.tvas made, will improve veterinary services, -Again, in the Yemen Arab Republic, a $5.2provide livestock credit to farmers, and es- million IDA credit, together with a loan fromtablish some 14 sheep improvement centers the Saudi Fund for Development, will helpin the western region of the country, and bring finance a grain storage and processing projectdirect benefits to 10,000 persons. In addition to which includes the construction of a 20,000the two credits, IDA carried out an agricultural metric ton silo in the port city of Hodeida, re-sector survey which was designed to help the gional warehouses, bakeries, and a credit com-Afghan Government in focusing on the prob- ponent for bakers operating in the privatelems of the sector and preparing a strategy to sector.cope with them. -In the People's Democratic Republic of

-In the Yemen Arab Republic, the Tihama Yemen, as many as 30,000 people are expectedDevelopmentProject, forwhichasupplemental to benefit directly from a $7 million IDA credit$10.3 million IDA credit was made, with financ- for a project in the Wadi Hadramawt designed 47

to increase agricultural production on some second credit, for support of a program to con-9,000 hectares of land, or about 10% of the trol bilharzia through chemotherapy and thetotal cultivable land in the country. Another application of molluscicides. About 3 million40,000 rural inhabitants will benefit from an people in the project area of Upper Egypt areassured supply of potable water. currently exposed to this endemic, debilitat-

Other projects-all assisted through IDA ing disease.resources-in the three countries included Though bilharzia control is also a componentthose in the power (Afghanistan), transporta- in the Douakkala irrigation Project in Morocco,tion (modernizing the port of Aden in the the major purpose of the $94.4 million schemePeople's Democratic Republic of Yemen), and (the Bank is assisting with a $30 million loan)education sectors (Yemen Arab Republic). is to provide for a rational development of

Three years ago, IDA provided its first edu- irrigation in the area and, thereby, to increasecation credit to the Yemen Arab Republic. An- agricultural production (mainly sugar beets,other project, now assisted with an $8 million tomatoes, maize, wheat, cotton, beef, andcredit, is designed to complement, strengthen, milk). The project has been designed so thatand expand the reform measures begun three a substantial share of the increased benefitsyears earlier. from increased production will go to the poor-

Teacher training programs-for both young est people living in the area. Incomes of aboutmen and women-and vocational training will 3,300 farm families are expected to more thanbe provided. The project's unique feature in- triple by 1989. As large numbers of peoplevolves a "basic training" program which is in- will have to be relocated in order to implementtended to have a major impact in extending the project, seven village centers will be built,nonformal basic training and literacy programs each with a treated public water supply, pavedinto villages (especially) and small towns. The roads, public lighting, and a primary school.success of the program depends heavily on Two loans, totaling $83 million, will helplocal enthusiasm and grassroots involvement. reduce air and water pollution in the Yugo-Initial community reaction to education and slavian city of Sarajevo. The loans, together,training in areas where development projects represent the first comprehensive, urban anti-are being implemented has been favorable. pollution program ever assisted with BankLocal interest and involvement in setting up funds. Natural gas will replace lignite as thesimple village training facilities will be ensured principal source of heating fuel, thus cleansingthrough village contributions in kind (such as the air of sulfur oxide. A gas pipeline will berudimentary furniture, mostly benches, and the built, and 300 central heating plants will besimple structures required to house the furni- converted from coal to gas. In addition, someture and equipment). 10,000 individual service connections (for gas)

will be installed. To abate the city's waterOther Countries, Projects pollution problems, Sarajevo's water and sew-

age systems will be rehabilitated and expanded.In fiscal 1976, lending to Egypt totaled $222 Water mains and distribution pipes will be in-

million. The lending program included one stalled or replaced, collectors and main sewersIDA credit (for on-lending by the Bank of constructed, and new sewage treatment facili-Alexandria), one Bank loan (designed to help ties installed.increase production and exports of fruits and Over 1 million residents of Damascus-vegetables) on Third Window terms, two Bank one of the oldest continuously inhabited citiesloans (to assist in the upgrading of the port of of the world-will be provided an improvedAlexandria and to help rehabilitate and mod- water supply system as a result of a project,ernize two textile enterprises) on conventional assisted by a $35 million Bank loan, with co-terms, and an IDA credit of $40 million com- financing of $40 million from the Arab Fund.binedwitha Bank loan of $10 milliontosupport With its population of 1.2 million growing bythe country's national land drainage program. about 5°,o a year, demand for water in Damas-

The drainage project (with co-financing be- cus has outstripped the supply, which hasing provided by USAID)(1) is the third opera- traditionally come from the Figeh spring in thetion in support of the country's national land neighboring hills high above the city.drainage program, the aim of which is to in- The Bank-assisted project constitutes the firstcrease agricultural production by reversing the major expansion of the city's water supply andprocess of salinization and waterlogging of the distribution system in more than 40 years. Thesoil. The three projects will help increase the supply of water from Figeh spring will be in-incomes of about 2,750,000 people-some creased, and the population of Dasmascus will485,000 farm families, most of whom are small be adequately served for the next 11 years.landholders. This third project also contains a Two Bank loans (totaling $60 million) willprovision, similar to that incorporated in the help Romania rebuild economic infrastructure

and productive capacity in the areas damagedby the floods of July 1975. Credit will be ex-tended to cooperatives and state farms severely

() United States Agency for International Development. damaged by the floods, industrial equipment 48

and spare parts will be replaced, 120 kilome- technical cooperation programs to be carriedters of roads and 270 kilometers of rail lines out during the year. The costs of the programswill be reconstructed, flood protection, irriga- will be paid for by the two countries.tion, and drainage works will be repaired, and In Iran, the Bank's Agricultural and Ruralthe national flood monitoring and warning sys- Development Advisory Mission in Tehran as-tems will be improved. sisted in the formulation and evaluation of

A $36 million loan for power marked the development programs and projects of highresumption of lending to Portugal after a gap economic and social priority in the agricultureof 10 years. The boan will assist the investment sector.program of the recently established national In Saudi Arabia, assistance is being providedpower entity, whose creation culminated a long in a number of fields, including manpower de-process of consolidation that had been sup- velopment and the evaluation of industrialported by the Bank through earlier loans. projects. A Resident Mission was established inTechnical Cooperation Riyadh during the year.

In the United Arab Emirates, assistance is be-Agreement was reached with Iran and Saudi ing extended in the fields of manpower plan-

Arabia on the nature and scope of the Bank's ning and macroeconomic analysis.

49

Per capitaLatin Am erica ~~~~~~~~~~~ ~~~~~~~~Population GNP 1974LatIl'n A merica Current borrowers (000)51) (USs)(')

and the Caribbean Argentina 24,646 1,520and the Caribbean ~~~Bahamas 199 2,460

Barbados 241 1,200Bolivia 5,470 280Brazil 103,981 920Chile 10,408 830

Trend in Lending, 1964-76 Colombia 23,125 500Costa Rica 1,919 840

(uSS rr ions Fisca years., Dominican Republic 4,562 650Annua Averages Ecuador 6,952 500

(00) Number of Ooerations El Salvador 3,887 410Grenada 108 330

t Cuatemala 5,284 580Guy,j . Panama ,6 18791 500

Haiti ~~~4,524 170Honduras 2,806 340_JIamaicruguay 2,008 1,190

Mexico ~~~57,899 1,090Nicaragua 2,084 670

Panama ~~~1,618 1,000Paraguay 2,484 510Peru 14,953 740Trinidad and -Tobago 1,070 1,680Uruguay 3,031 1,190Venezuela 11,630 1,970

300 690 900 1.200 0) Estimated as of mid-1974.D) Due to updating of the base period from 1972-74 to 1973-75,the GNP estimates shown herein differ from those shown inthe Annex of the 1975 World Bank Atlas.

The economic growth of the countries of the calendar 1975 following that in 1974. The termsLatin America and the Caribbean region slowed of trade in 1975 were 18% below the 1973-74considerably during the fiscal year, as increases average for Argentina, Brazil, Chile, Colombia,in exports and output were much smaller than and Peru, taken as a group.in the previous three years. In some countries, The slowdown in export growth was espe-exports and output actually declined. The re- cially marked in manufactured products. Co-cession in the industrial countries of Europe lombia, Mexico, and Peru were the major coun-and North America was the main cause of eco- tries experiencing declines in the current dollarnomic deceleration in the region. Declining value of their industrial exports. Though Brazil'sdemand in the industrial countries reduced manufactured exports significantly increased ingrowth of export volumes, and caused the volume, they rose by only 14% in value, com-prices of several important agricultural com- pared with increases of 40% to 50% in themodities-beef, sugar, soybeans, and cotton- years 1971-73. The Caribbean countries andto decline. Mineral prices also fell sharply, led Mexico were particularly hard hit by the fall inby copper, which dropped 40%. While in nom- tourism earnings. And the major copper pro-inal (current dollar) terms, export prices were ducers, Chile and Peru, suffered net declinesnot, on average, below their 1973 levels, the in their total export earnings.continued rise in import prices caused a fur- While the recession in industrial countriesthier deterioration in the terms of trade in made the environment more difficult for the 50

development of the region, the adjustments countries-including Bolivia, the Dominicanto the new environment also brought out the Republic, and Paraguay-were able to main-strength and resiliency of several economies. tain growth rates of 5%X0 or more. The econo-A number of countries managed to avoid even mies of all the petroleum-exporting countriessharper falls in their export earnings through of the region continued to expand rapidly, ledeffective economic and financial policies. by Venezuela, which saw its non-petroleumOthers benefited from increases in the prices output grow by 8%; Trinidad and Tobago re-of selected commodities and improvements in corded an increase of 5°,h in gross domesticagricultural output and exports. Thus, the in- product (GDP).crease in the price of coffee in late 1975 (the The general deterioration in the external eco-frost in Brazil sharply reduced prospective sup- nomic environment necessitated cutbacks inplies) and price rises in bananas were important spendable resources for investment and devel-to Central America and Colombia. The strong opment. The range and speed of the adjustmentgrowth of regional trade, fueled, in part, by the measures taken, of course, differed. Measurescontinuing high demand for imports by Vene- included cuts in public and private consump-zuela, was also a positive factor. Mexico's ex- tion, partly through the removal of price sub-ternal position benefited from an increase in sidies and through increases in taxes and inpetroleum exports. In the Caribbean, marketing prices for public services. Colombia imple-agreements caused the impact of higher sugar mented far-reaching fiscal reforms intended toprices to be delayed until 1975, and the terms improve social equity and to strengthen theof trade for Barbados, Guyana, and Trinidad country's stabilization efforts. Several otherand Tobago improved for the second consecu- countries increased their tax revenues. Mexicotive year. achieved an increase in public revenues by al-

most 2% of GDP in 1975, and Costa Rica, byImpact of the Recession the equivalent 3.4% of GDP between 1972 and

1975. In Brazil and other petroleum-importingThe impact of the recession in the industrial countries, domestic petroleum prices were

world was offset to some extent by increased brought in line with international prices. In-external borrowing, and by the fact that all the vestments were made to expand new, or addlarger countries, except Colombia, Mexico, to, existing sources of energy, including thoseand Venezuela, dipped into their external re- in major projects designed to exploit theserves. The flow of external capital, which region's considerable hydroelectric potential.already had risen considerably in 1974, in- Several countries continued, or intensified,creased further during 1975. Net capital flows their policies to encourage exports, and to con-from private sources continued to supply a high tain import demand. Such adjustments, com-proportion - some 80% - of the total; the bined with the deceleration in internationalterms on private credits continued to be hard. inflation, contributed to a reduction in inflationOn net balance, total external credit from in most countries in the region. Exceptions,both private and official sources increased by however, were found in Argentina and Peru.some 10% in 1975. The region also benefited As the depth of the decline in the demandfrom the IMF oil facility, and the countries of for exports from the region was greater thanCentral America and Panama were helped by originally anticipated, several countries madethe credits extended to them by Venezuela correspondingly more difficult adjustments inthrough its special oil facilities, designed to their development expenditures and invest-compensate for part of the increased cost of ment programs. For those countries, a contin-petroleum. Interest payments on external debt uing inflow of external capital on suitable termsimposed a rising burden, however, and were will be needed if they are to avoid a prolongedan important factor in the increases in current and excessive slowdown in their rates of eco-account payments deficits; for 22 countries in nomic growth. In addition to causing overallthe region, excluding Venezuela, the aggre- growth to slacken, the squeeze on resourcesgate deficit rose from $12,600 million in 1974 for development has made it more difficult forito over $16,000 million in 1975. countries to make income distribution more

The slower pace of economic growth was equitable and to increase productivity amongmost marked in the copper-exporting coun- the poorest population groups. Given its strongtries, in the larger countries which had to im- resource base, however, the region has, as aport petroleum, and in those countries, whose whole, a solid longer-term potential, and theeconomies, by diversifying and expanding in- measures the countries have so far taken havedustrial exports, had become progressively laid the basis for a resumption of growth.interdependent with those of the industrialcountries. Brazil's rate of economic growth was Level and Composition of Lendingdown from 9.6% in calendar 1974 to about4.2% in 1975; Colombia's from 5.9% to about World Bank lending in the region substan-4%; and Peru's, from 6.6% to 3.9%. Growth tially increased to $1,448.4 million in fiscalwas also particularly slow in most of the coun- 1976, or 19.2% over fiscal 1975 totals. Thetries of the Caribbean. Nonetheless, several number of projects financed rose from 34 to 42. 51

In most of its operations, the Bank continued lending to the region during the year was theto give greater emphasis to the improvement increase in loans for industry.of employment opportunities for, and produc- Development finance companies (DFCs),tivity of, the poorest groups. Agriculture, trans- which can help meet several priority objectivesportation, and industry were the leading sectors of industrialization programs, proved to be im-in Bank lending to the region. Projects in those portant channels for Bank assistance in the sec-sectors were frequently adapted to the special tor. In fiscal 1976, DFC lending by the Bankneeds of target groups in urban and rural to Latin American and Caribbean countrieseconomies. increased to $280 million, from only $10.5 mil-

Of total lending, some $25.5 million in loans lion in the previous year. Virtually each of thewas approved on Third Window terms; IDA six loans made during the year had some novelcredits amounted to $39.5 million. Of special features.interest among the latter was a credit of $5.5 Export expansion was a main feature of amillion to Haiti for the development of educa- $35 million Bank loan designed to help thetion. The project was designed to meet the Government of Uruguay reactivate industrialbasic education needs of the communities in output. The first objective of the loan is to sup-three important geographic regions of Haiti: port the Government's economic liberalizationthe Plaine du Nord and the Artibonite (two program by providing working capital andrural areas where substantial complementary medium-term and long-term credits to selecteddevelopment efforts are under way) and the export-oriented enterprises to finance importscapital city of Port-au-Prince. In addition to ex- of raw materials, spare parts, and other com-panding access to education and more closely ponents entering into the manufacture of non-integrating that activity into the normal socio- traditional exports. To implement the program,economic life of the communities, the project the Bank helped establish a financial mechan-seeks to introduce important qualitative im- ism-involving the Central Bank and selectedprovements in the content of primary educa- commercial banks -that would finance thetion and teacher training-particularly in rural cost of importing raw materials and provideareas where primary education, in the past, was medium-term and long-term credit to financeill-adapted to the functional needs of students plant renovation, modernization, and expan-and their families. sion. By doing so, the Bank intended to contrib-

ute to the reactivation of the financial marketIncreasing Lending for Industry by introducing interest rates similar to those

prevailing in international financial centers.The Bank continued to increase its efforts to Rapid population growth and continued mi-

assist the countries of the region in diversifying gration to many of the larger Latin Americantheir economies through the continued expan- cities continue to create severe problems ofsion of industrial output and exports. The most unemployment, urban poverty, and pollution,marked change in the composition of Bank and to put severe pressures on infrastructural

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

Annual Annualaverage average1964-68 1969-73 1974 1975 1976

Agriculture $ 46.6 $109.2 $223.5 $ 422.0 $ 224.5Education 4.2 19.1 68.2 47.5 35.0Industry (including DFCs) 12.9 96.4 76.2 155.5 463.0Nonproject - 12.0 - - 4.0Population and nutrition - 1.0 - - 25.8Power 177.2 201.8 248.7 76.0 218.0Technical assistance (including

preinvestment studies) - - 13.3 -

Telecommunications 14.7 19.9 41.5 41.0Tourism - 4.4 - 21.0Transportation 47.7 186.2 177.6 401.5 404.5Urbanization - 5.1(I) 15.0 8.5 21.6Water supply and sewerage 7.1 51.3 59.2 42.0 52.0

Total $310.4 $706.4 $923.2 $1,215.0 $1,448.4

Of which: Bank $300.7 $683.1 S885.9 $1,166.5 $1,408.91"IDA $ 9.7 $ 23.3 $ 37.3 $ 48.5 $ 39.5

Details may not add to totals because of rounding.(l) Includes $20 million for Nicaragua earthquake reconstruction.(2) includes $25.5 million on Third Window terms. 52

capacity. To support the Colombian Govern-ment's policy of industrial decentralization,important features of a project, to which theBank loaned $80 million (to be relent to indus-trial companies), included explicit support forthe creation of new firms, for the financing ofexisting firms sponsoring decentralization proj-ects, and for giving increasing importance toenvironmental impact considerations in theappraisal of investment projects. In addition toPromoting the growth of manufacturers' ex-ports, another important objective of the loanwas to assist firms to undertake technologyimprovement programs so as to become morecompetitive through production efficiency andproduct quality.

The main objective of a loan totaling $20million ($3 million of which was on Third Win-dow terms) to the Caribbean DevelopmentBank (CDB) was to strengthen that importantregional institution and thereby assist in theeconomic development and integration of the12 English-speaking countries and territories ofthe Caribbean region. A distinguishing featureof the loan included the financing of a widerange of public and private sector projects inagriculture, agro-industry, manufacturing, tour-ism, transportation, public utilities, "sites andservices," and technical and vocational educa-tion training in CDB member countries. TheWorld Bank is increasingly looking to the CDBas a channel for funds to support national andregional projects. The fact that the CDB canhandle project preparation, appraisal, and im- An Ecuadorian cattle farmer and his son on a farmplementation, will give the Bank greater flexi- near Quito. in the past three years nearly $1,brebility in allocating its funds and ranpower million has been approved by the Bank for agriculturalthroughout the region served by the CDB. development in Latin America and the Caribbean.

The Urban Sector in Peru, through a $36 million loan, the Bankis helping finance the expansion of the electric

Latin America is already among the most power distribution system in Lima. It is thusurbanized of the developing regions, and the being instrumental in helping make electricityrapid increase in the urban population has put available to households in several of the poorersevere pressures on housing, transportation, areas (pueblos jovenes) around the city. Inand other services. The influx of poor, rural 1974, only 40to of the households in theseworkers has made the needs greatest in the poorer districts had electric power, far belowpoorest neighborhoods of both large and small the 81I average for the entire metropolitancities. The Bank is seeking to meet those needs area. It is expected that by the end of thethrough various types of loans for urban infra- project construction period, mid-1979, aboutstructure and "sites and services" projects. 182,000 households (approximately 1 millione One of the most urgent needs of the urban people) in the pueblos jovenes will be receiv-poor is for better water and sewerage facilities. ing public-service electricity.Mexico, assisted by a $40 million Bank loan,will now be able to construct or extend waterfacilities in eight, and sewerage services in six, Agricultural and Rural Developmentmedium-sized cities. Whereas less than halfthe urban poor in the selected cities are today In its lending to the rural sector, the Bankreached by such services, more than half (of a seeks to improve agricultural output and pro-total population of more than 1 million people) ductivity as well as to increase the incomes andwill have access to them when the project is living conditions of small farmers and thecompleted in 1980. Operating and other costs poorest rural groups. An example is providedwill be met from tariff revenues, and the pres- by the Ingavi Rural Development Project in theent practice of de facto grant financing will be northern, Altiplano region of Bolivia. The proj-phased out. ect area covers 800 square kilometers and has 53

a population of 60,000. The majority of the be generated. Institutional credit will be ex-beneficiaries of the $9.5 million loan (on Third tended to some 8,000 farm families and tech-Window terms) have cash incomes placing nical assistance to some 15,000 families.them among the poorest 20% of the popula- Community health services will be made avail-tion of the country. The main objective of the able to roughly 42,000 rural families, and aboutproject is to increase agricultural and livestock 2,200 new agricultural jobs will be created.production among 4,000 farmers through the Again in Brazil, a $19 million loan markedprovision of production inputs, deep well irri- the Bank's first involvement in a project de-gation systems, tractors, livestock investments, signed primarily to improve nutritional condi-and storage facilities. The project also seeks to tions. Protein-calorie malnutrition is an impor-foster the cooperative movement as a means of tant factor in over three-quarters of the deathsforming more efficient economic units and uti- of children under the age of five in Brazil. Therelizing more effectively scarce technical assist- is also increasingly strong evidence that theance and credit resources. The supply of basic benefits of nutrition can be quantified, as re-foods to the La Paz market will be increased, flected in higher returns on education invest-and the project is expected to serve as a model ments and improved productive capacity. Onefor development efforts elsewhere in the facet of the Brazilian project will be to improveAltiplano. the information base on malnutrition problems

In Mexico, a $125 million loan, the fifth in and on the relationship of the problems anda series of Bank loans to the Fondo de Garantfa potential solutions to socioeconomic policies.y Fomento para la Agricultura, Ganaderia y The project will also test the effectiveness ofAvicultura, will finance a credit project helping alternative delivery systems designed to im-to complement the multifaceted Government prove the nutritional status of target groups-program aimed at restoring dynamism to Mexi- preschool children and pregnant and lactatingcan agriculture. Growth rates in the sector have women. In addition, the project will provideslowed down in recent years and production for a research and development program forhas not kept up with domestic demand. In tune low-cost processed foods, engineering andwith the distributional objectives of the Govern- marketing feasibility studies for industrial-scalement, 60% of the Bank loan for on-farm invest- production of such foods, and investmentment purposes will be allocated to ejidatarios(1) financing necessary to begin production on aand other low-income producers. The loan will large scale. A training and technical assistancealso help fund applied research and demon- component will contribute significantly to thestration farms for the adoption of improved development of a cadre of trained officials andtechnology by small farmers and for the train- strengthened institutions equipped to utilizeing of staff of participating agriculture invest- the groundwork set by this project in planningment banks. The scope of the project is and implementing a broader national nutritionnational, and will help finance on-farm in- program in the future.vestment in crops and livestock as well as agro- A $3 million loan to Ecuador marked the firstindustries. Bank-assisted project in Latin America to make

A $12 million loan for a rural development improved seed varieties more widely availableproject in the northeastern state of Rio Grande to local farmers. So far, only the most progres-do Norte in Brazil is intended, in particular, sive farmers and rice producer cooperativesto help increase small farmer productivity in have profited from the use of indigenously pro-this drought-prone area. The project is one of duced certified seed, and only for a limitedthe first under the Government's new POLO- number of crops. Asa consequence, most farm-NORDESTE (Special Development Fund for the ers use their own seed, which is generally ofNortheast) program. It includes expanding low quality. Under the project, certified seedcredit and extension services, field testing new will be available for the first time for virtuallyproduction techniques, and developing im- all major food crops. The project will supplyproved health services. Production of perennial certified seed for crops largely harvested in thecotton among participants is expected to dou- poorest rural areas and those usually plantedble and a marketable surplus of food crops will by small farmers. By the fifth year of the proj-

ect, there shouid be enough seed produced andsold to sow twice as much land-about 152,000

I" Villagers who work a common area owned jointly by them. hectares-as is now sown with improved seed.

54

Projects Approved for Bank and IDAAssistance in Fiscal 1976, by Sector

Agriculture loan is on Third Window terms. Total cost:

AFGHANISTAN: IDA-$15 million. Fourteen S12.8 million.sheep improvement centers will be established; BRAZIL: Bank-$40 million. The Govern-wells and access roads built; credit, technical ment-owned agricultural research corporation,assistance, and training provided; two range Empresa Brasiteira de Pesquisa Agropecuaria,improvement field stations set up; and veteri- will carry out a project designed to strengthennary services improved and extended. More agricultural research aimed at accelerating pro-than 1,000 sheep herders will directly benefit duction of rice, maize, sorghum, cassava, cot-from this second livestock project, designed to ton, beans, rubber, dairy cattle, beef cattle,raise export earnings from meat and livestock sheep, and goats, and at improving the effi-by-products, and improve the flocks and in- ciency of farming systems in the northeast,comes of nomadic and semi-nomadic flock north, and center-west of Brazil. The overallowners. Total cost: $18 million, project objective is to develop new technology

AFGHANISTAN: IDA-$10 million. Supple- suitable for adoption by large numbers of farm-mentary financing will be made available to ers, Total cost: $189 million.cover the increased costs of a project limited BRAZIL: Bank-$12 million. A rural develop-to the first phase of an irrigation moderniza- ment project in the northeast part of the coun-tion program for the Khanabad valley. Some try is designed to strengthen the institutional$5 million in IDA funds were committed for capability of the Government's new POLO-the project in fiscal 1971. NORDESTE program to conceive, plan, and

BANGLADESH: IDA-$22million.An18,600- impiement in a coordinated manner a varietyhectare irrigation project in southeastern Bang- of actions to increase the income and welfareladesh will increase rice production from 93,000 of poor farmers at low levels of cost. Farmers'tons of paddy to 141,000 tons by 1983, and is cotton income will double over a nine-yearexpected to increase the per capita annual in- period, institutional credit will be made avail-comes of some 20,000 farm families from $90 able to 8,000 farm families and technical assist-to $120. Additional jobs will also be created ance to 15,000 families. Health service will befor landless laborers and "marginal" farmers. made available to more than 40,000 families.Total cost: $30.3 million. Total cost: $30 million.

BANGLADESH: IDA-$16 million. More BURMA: IDA-$30 million. Largely by pro-than 900,000 people in seven counties in two tecting 50,000 hectares of land from floodingdistricts will be aided by a project aimed at and salt water intrusion on which rice andstrengthening the Government's rural develop- jute are grown, and by reclaiming some 25,000ment programs in the areas. Improved working hectares of abandoned paddy land in theprocedures for rural development will be pro- southern Irrawaddy delta, the incomes of about

.vided, which, it is hoped, will serve as a model 18,000 poor or landless farm families will befor a series of similar future projects in other more than doubled. Agricultural exports re-areas of Bangladesh. Rural works will be under- sulting from the project may yield foreign ex-taken, the areas' irrigation systems expanded change earnings of $28 million annually byand improved, agricultural credit provided, and 1988. Total cost: $54 million.rural services and institutions strengthened. BURMA: IDA-$7.5 million. The incomes ofRuraf jobs will increase by 25%, and rice pro- about 250,000 small-scale farmers will be in-duction could rise by as much as 75,000 tons. creased through quantitative and qualitativeTotal cost: $24.7 million. improvements to livestock in agricultural areas

BOLIVIA: Bank-$9.5 million. The standard of central Burma. Increased milk and beef pro-of living of 10,000 rural families of the Altiplano duction will result in a yearly foreign exchangewill be improved through a rural development savings of about $4 million. Veterinary and live-project involving the provision of agricultural stock extension services will be developed,inputs, infrastructure, and social services. Pro- communal pasturelands improved, water pointsduction by 4,000 project farmers will increase and a milk processing plant constructed, and(vegetables, milk, cereals, and meat), and em- livestock development centers built. Total cost:ployment opportunities will be enhanced. The $12.8 million. 55

BURUNDI: IDA-$6 million. Fish production Agencv for International Development is ex-from Lake Tanganyika will increase by about pected to participate in the project's financing.10,000 tons and about 3,000 fishermen (half of Total cost: $282 million.them new to the trade) will earn between $300 ETHIOPIA: IDA-$27 million. Assistance inand $600 yearly as a result of this project, co- developing the country's vast rangelands regionfinanced with the help ($1 million) of a loan (500,000 square kilometers) will be made avail-from the Abu Dhabi Fund. Total cost: $8.6 able. Each of the three subprojects in differentmillion. areas of the country will be provided an inte-

BURUNDI: IDA-$5.2 million. More than grated program of range management and100,000 smallholder farmers of Ngozi Province veterinary services along with improved roadswill be provided with instruction in better cof- and wvater facilities. The subprojects will layfee cultivation practices and with inputs such the foundation for a sound development of theas fertilizers, insecticides, and tools. Extension country's livestock economy, hit hard by re-work directed at food crops will also be initi- cent droughts. The African Development Fundated in the province and technical assistance will participate in the financing in an amountwill be provided. The project is co-financed of about $5.5 million. Total cost: $43 million.with a $1.2 million loan from the Kuwait Fund. FIJI: Bank-$12 million. At full development,Total cost: $7.5 million. this sugar development project is expected to

CHAD: IDA-$5 million. Irrigation and generate $13 million yearly in additional for-drainage networks on two polders-land re- eign exchange earnings, benefit some 3,500claimed from Lake Chad and protected from farming families, and provide 3,500 new jobsthe water by dikes-will be constructed or re- during the crushing season. Total cost: $26habilitated, and a package of services-reset- million.tlement assistance, training, extension, credit, THE GAMBIA: IDA-$4.1 million. The perand marketing-will be provided to those who capita incomes of about 48,000 poor farmerswork the land. The yearly incomes of the 1,200 living in 65 villages in the western part of thefamilies expected to benefit from the project country will be doubled as a result of a projectcould rise from S35 to about $145. Three co- designed to increase cereal (rice, sorghum) andfinancers are contributing $8 million towards cash crop (peanuts) production through "pack-the project costs. Total cost: $13 million, age- programs, and boost cattle production

ECUADOR: Bank-$4 million. Technical as- through better husbandry practices, and mar-sistance will be made available to improve keting. The Overseas Development Ministryplanning, preinvestment, and project prepara- 'United Kingdom) is granting $4.1 million andtion in the agricLulture and rural development the Arab Bank for Economic Development insector. Total cost: S5.6 million. Africa is lending $3.3 million to help finance

ECUADOR: Bank-$3 million. Government the project. Total cost: $11.7 million.activities in the production and distribution GHANA: Bank-$21 million. Through betterof improved seeds will be better integrated support services and the provision of farm in-through the installation of three seed process- puts and facilities, some 125,000 farm familiesing plants, the expansion of seed storage facil- living in the Upper Region will be able to in-ities, the construction and improvement of seed crease agricultural production, and thus, theirwarehouses, the training of additional person- incomes. in addition, an Onchocerciasis Surveynel, and the provision of equipment. Total cost: Unit will be established to prepare a 10-year$5 million. development plan and feasibility studies for

EGYPT, ARAB REPUBLIC OF: Bank-S50 mil- areas freed from the disease in the Upper andlion. Fruit and vegetable production will be Northern regions. The United Kingdom is help-developed for home use and export, especially ing finance the project with a concessionarythrough improvement of vegetable seed and loan of about $11 million. The Bank loan is onseed potato inputs, and through packing and Third Window terms. Total cost: $54.6 million.marketing facilities. The project will help build GHANA: Bank-$14 million. The main com-institutions related to horticultural production ponents of this first phase of a program to re-and marketing; drainage works will be under- vitalize the cocoa industrv include provisiontaken to reduce waterlogging and salinity in of credit to smallholder cocoa farmers, farmerthe vegetable seed component area; and be- training in modern production techniques, andtween 10,000 and 15,000 jobs will be created. equipment for feeder road maintenance. CocoaTotal cost: S108.1 million. production is expected to increase by 10,000

EGYPT, ARAB REPUBLIC OF: Bank-$10 mil- tons annually, and about10,000families (70,000lion; IDA-$40 million. Some 880,000 people, people' will benefit. The Arab Bank for Eco-most of whom live on small farms, wil! benefit nomic Development in Africa is providing co-from this third Bank-assisted project designed financing of some $5 million. Total cost: $21.9to arrest the decline in agricultural yields due million,to waterlogging and salinity. Covered drains GREECE: Bank-$40 million. Irrigation facil-will be installed in about 200,000 hectares of iies in the fruit-producingarea of centralMace-farmland in Upper Egypt, and bilharzia control donia will be expanded and upgraded. Themeasures will be provided. The United States project will help increase fruit production by 56

40% and will double the harvest of vegetables tated under past IDA credits; the present proj-and alfalfa. Per capita incomes of farmers are ect will, through better water control andexpected to rise an average of about $400 a distribution, help rehabilitate tertiary canalyear to about $700 in 1987. Dependable irriga- systems serving areas as small as 150 hectarestion will help reduce annual fluctuations in each. Total cost: $60 million.farm incomes caused by adverse weather con- INDONESIA: Bank-$22 million. A nationalditions. Total cost: $90 million. food crops extension project, covering nine

HONDURAS: IDA-$14 million. Settlements provinces in Java, Sumatera, Sulawesi, and Kali-formed as a result of a recent agrarian reform mantan, and benefiting some 12.8 million farmJaw, as well as private commercial agriculture, families cultivating more than 7 million hectareswill be aided by a project designed to help of paddy land, will be implemented. Additionalfinance investments for dual purpose beef/dairy extension staff will be hired, rural extensionfarmers, livestock fattening operations, and for centers will be renovated and built, and train-'the production of annual and perennial crops. ing provided. Total cost: $44.2 million.Two rice mills and four food processing indus- KOREA, REPUBLIC OF: Bank-$60 million.tries also will be financed and technical assist- As many as 4 million people, or about 30%ance to strengthen Government supporting of the country's rural population, will benefitservices for the agrarian reform will be pro- from this rLral development project, designedvided, Total cost: $20 million. to serve 15,000 rural villages with minor irri-

INDIA: Bank-$145 million. Production of gation works, land reclamation, roads andrice and other crops on 72,000 hectares of land bridges, water supply, electricity, and fuelwoodin Andhra Pradesh will increase about fivefold, plantations. Forty million dollars of the loan is100,000 farms will be supplied with reliable on Third Window terms. Total cost: $143.5irrigation, and as many as 1 million people million.will be provided employment and wages from KOREA, REPUBLIC OF: Bank-$15 million.a project which will complete the construction About 450 new dairy farms will be establishedof irrigation and drainage canals in the Nagar- and 400 existing farms improved and expanded;junasagar irrigation system and provide the nearly 850 farm households will benefit (andfirst phase of command area development for will be afforded year 'round employment), andfour irrigation systems in the state. The loan on-farm employment will be created for asis on Third Window terms. Total cost: $297 many as 1,000 permanent workers and 3,500million. casual laborers. Total cost: $24.5 million.

INDIA: Bank-$25 million. This second LIBERIA: IDA-$6 million. Average net farmBank-assisted project in support of seed pro- family incomes are expected to increase fromduction in India will focus on the develop- $313 a year to $913 by 1987 as a result of thisment of quality cereal seeds (wheat, rice, maize, project centered in Voinjama in northwestsorghum, and pearl millet)-and lesser amounts Liberia. The project aims at raising the incomesof cotton and vegetable seeds--in four states, and improving the quality of life of some 8,000Investments will be made in seed technology of the country's poorest farm families by intro-research, quality control, and production and ducing improved cultivation practices and bet-storage facilities. Total cost: $52.7 million. ter transportation facilities, and by providing

INDIA: lDA-$18 million. About 120,000 reliable water supplies and disease control.farm families and 200,000 landless laborers are Total cost: $17 million.expected to benefit from this project, designed MALAWI: Bank-$9.2 million. This secondto pioneer key improvements in three repre- phase of a rural development project in Ka-sentative cotton-growing areas in Haryana, ronga continues support, for a four-year period,Maharashtra, and Punjab states. Higher cotton of the Government's rural development pro-,productivity could add about 800,000 tons of gram designed to raise agricultural productivityhigher quality lint and 1.5 million tons of cot- and accelerate nationwide rural development.tonseed over a 20-year period in the three Some 10,000 farmers will double their incomesareas. Total cost: $36 million. through a package of services. In addition,- INDIA: IDA-$4 million. Technical assist- freight services on Lake Malawi will be im-ance is being provided to help develop and proved. The loan is on Third Window terms.prepare the basis and resources for wood proc- Total cost: $12.1 million.essing schemes in Madhya Pradesh. While ways MALAYSIA: Bank-$21 million. Smallholderto develop fast-growing trees on plantations farmers in the north Kelantan region (Eastare explored, a sound resource base for pulp, Coast) will benefit from flood control, irriga-paper, and related industries will be identified. tion, and drainage works and the constructionTotal cost: $8.2 million. of access works (all in the Lemal area); else-

INDONESIA: Bank-$33 million. As many as where in the region, 190 kilometers of roads1 million people will benefit from an irriga- will be built, 25 farmers' development centerstion project designed to increase paddy yields will be constructed or expanded, and an in-on about 100,000 hectares in Java and Sula- tensified program of agricultural extension cov-wesi. The main and secondary canals serving ering the state of Kelantan will be instituted.the project areas have already been rehabili- Total cost: $48 million. 57

MEXICO: Bank-$125 million. A fifth loan irrigation and for reclamation of saline soilsfor agricultural and livestock credit will help through leaching. Agricultural extension serv-raise the productivity of Mexico's small farmers ices will be strengthened, and credit providedas well as medium-income farmers, and will to farmers and contractors for land leveling inhelp increase their incomes and integrate them the project area. Total cost: $28.3 million.into the market economy. As many as 250,000 PAKISTAN: IDA-S8 million. Help in financ-people stand to benefit from the credit which ing the cost of repairs and additional works atwill be made available. Most of the benefici- the Tarbela Dam, seriously damaged in 1974,aries are of the lowest-income strata and many will be given. Contributions totaling $41.6 mil-will be receiving institutional investment credit lion from Australia, Canada, the Federal Re-for the first time. public of Germany, Italy, the United Kingdom,

MOROCCO: Bank-$30 million.About3,300 and the United States are also forthcoming.farm families will benefit from a project de- Total cost: $67 million.signed to provide a rational use of the Oum-er- PHILIPPINES: Bank-$50 million. IrrigationRbia waters for irrigation development on works by the Chico River in the potentially15,400 hectares of land in El Jadida Province, rich rice-growing Cagayan valley in northernincrease agricultural production, and ensure Luzon will be both upgraded and expanded,that a substantial share of the benefits from and provincial roads in the area will be im-increased production go to the poorest mem- proved. (The Magat multipurpose project-seebers of the population. Fragmentation of land immediately below-will also benefit from thewill be curbed through a land consolidation roads component.) Some 8,000 farm familiescomponent, and a bilharzia control program and 2,000 landless families will benefit fromwill be implemented. Total cost: $94.4 million. the tripling of land under dry season irriga-

NEPAL: IDA-$8 million. A rural develop- tion, and increases in paddy production toment project in two districts north of Kath- 147,000 tons a year will provide enough ricemandu seeks to arrest the decline in agricul- to feed 600,000 persons. Total cost: $84 million.tural yields and per capita production and to PHILIPPINES: Bank-$42 million. At full de-provide basic health services and infrastructure velopment in 1982, the part of Stage I of thesupport. About 25,000 farm families will be Magat River multipurpose project assisted byable to meet their full yearly familv subsist- the Bank will produce enough rice to feedence requirements; today, production is suffi- about 825,000 people, and some 12,000 paddycient to meet only eight or nine months' needs. farmers will directly benefit. More than 12,000Total cost: $10.9 million. hectares of existing irrigation systems in north-

NIGER: IDA-$10.7 million. As many as ern Luzon will be rehabilitated, and 23,00050.000 farm and pastoral families will benefit more will be included in the expansion of thefrom a rural development project designed system. Total cost: $84 million.mainly to increase peanut, millet, and cowpea PHILIPPINES: Bank-S20.5 million. Moneyproduction on 15 cooperatives. A host of proj- will be provided to the Development Bank ofect components will be provided-including the Philippines for on-lending to livestock pro-credit for the purchase of livestock, roads, edu- ducers, particularly for smallholder pig andcational facilities, evaluation of means to de- poultry operations. Technical assistance will bevelop irrigation potential, planting of trees for supplied to subborrowers, and municipal abat-fuelwood production, among others-and by toirs will be upgraded. About 18,000 persons1982, future average yields in the cooperatives will directiv benefit, and 5,800 full-time jobsmay be close to those obtained in periods of will be created. Total cost: $41.3 million,favorable rainfall. Total cost: $13.2 million. PHILIPPINES: Bank-$12 million. The De-

PAKISTAN: IDA-$23 million. Help in financ- velopment Bank of the Philippines will provideing the first phase of the development of a long-term loans and technical assistance to theseeds industrv (capable of producing 100,000 private sector for construction of fishing andtons annually of quality seeds at full produc- carrier vessels, fish pond rehabilitation andtion), including research, variety release, seed construction, ice plants, and a marine slipway.multiplication, processing, certification, stor- Fish production will increase by 26,000 tonsage, and marketing will be provided. The proj- (value: $11 million) and 1,750 permanent jobsect will cover cotton, wheat, rice, maize, and, will be created. Total cost: $23.5 million.to a lesser extent, pulses, oilseeds, and fodder. PHILIPPINES: Bank-$11.5 million. YearlyTotal cost: $56.5 million. post-harvest grain losses of about 17,000 tons

PAKISTAN: IDA-$14 million. Farmers tend- will be eliminated and $11 million annuallying more than 14,500 hectares of land fed by in foreign exchange will be saved as a resultirrigation waters from the Indus River in Sind of a project providing milling, drying, storage,will be able to restore and maintain the and transport facilities needed to support in-productivity of their land through a project creased rice and corn production. About 135designed to control waterlogging and soil sali- rice mills (producing more than 200,000 tonsnization through installation of buried tile of rice a year) and 20 corn mills (72,000 tonsdrainage. Existing canals will also be enlarged of milled corn) will be financed. Total cost:and remodeled to provide additional water for $28.5 million. 58

ROMANIA: Bank-$60 million. Through a the south, land will be cleared for food (corn,combination of irrigation, on-farm develop- sorghum, rice, vegetables) and technical assist-ment, and agro-industrial investments, this ance provided. In rangelands to the north, live-project will increase and stabilize production stock development will be initiated, with vari-on about 65,400 hectares in a relatively unde- ous inputs and technical assistance provided.veloped part of southeastern Romania. It would The rangeland development will be supportedalso provide water supply facilities to 17 rural by the Kuwait Fund ($21 million), while the re-communities and increase the incomes of some settlement areas scheme will be co-financed6,000 members of cooperative farms within the by the Arab Fund ($22.4 million), IDA ($8 mil-project area. Total cost: $141.3 million. lion), and the African Development Fund ($5.5

ROMANIA: Bank-$40 million. Agricultural million). Total cost: $62.3 million.credit will be extended to cooperatives and SRI LANKA: IDA-$25 million. The creditstate farms which suffered serious losses in the will help increase food crop and sugar produc-

, floods of July 1975. Flood protection, irriga- tion and maintain employment and quality intion, and drainage works will be repaired. the tree crop sector. Annual production of rice,Total cost: S124 million. pulses, other cereals, and sugar is expected to

SENEGAL- IDA-$6.3 million. Some 7,400 go up by 182,000 tons by 1982. Total cost:farm families 180,000 people) living in the $60.5 million.southern part of the country will be able to TANZANIA: IDA-$18 million. Through aadopt improved crop and livestock production National Maize Project, Tanzania hopes to be-techniques through the provision of inputs, come self-sufficient in its staple grain by 1982,credit, and technical assistance. This second and thus achieve annual foreign exchange sav-rural development project in the area will also ings of about $10 million. Almost 1,000 villageshelp strengthen cooperatives through manage- in high-potential, maize-growing areas of thement training and by promoting the organiza- country are expected to take part in the pro-tion of cooperative unions. Total cost: $14.9 gram. Seed, fertilizers, insecticides, herbicides,million. and essential storage and transport facilities

SENEGAL: IDA-$4.2 million. Some 30,000 will be provided to 380,000 participating fam-livestock owners will increase their incomes ilies. Total cost: $38 million.through a project in eastern Senegal (where TANZANIA: IDA-$10 million. Annual out-the potential for crop production is low) which put of milk on commercial dairy farms will bewill increase livestock production through ani- more than doubled by 1987, imports of dairymal health and husbandry improvements. The products will be reduced, and dairy units willKuwait Fund for Arab Economic Development be established in villages. Commercial dairyand the Arab Bank for Economic Development farms in five regions will be rehabilitated andin Africa are providing $5.7 million towards expanded; milk collection, processing, and dis-the project's costs. Total cost: $13 million. tribution facilities will be improved; a pilot pro-

SENEGAL: IDA-$2 million. This resettle- gram will develop dairy units in 50 ujamaament project will benefit 6,000 people; 450 villages; a breeding unit will be established;families will be resettled in nine new villages technical assistance will be provided; and re-and 150 families installed in existing villages. search will be carried out. Total cost: S15.3Construction and rehabilitation of village wells, million.staff houses, village stores and classrooms, and THAILAND: Bank-$95 million. Improvedabout 100 kilometers of village access tracks rice yields, double cropping, and crop diversi-and secondary roads are included. Technical fication through irrigation, on-farm develop-assistance will be provided to prepare a plan ment, and supporting agricultural services nearfor the integrated agricultural development of Phitsanulok in the north of the country willeastern Senegal. Total cost: $3.9 million. result from an irrigation project providing year

SOMALIA: IDA-$10 million. Food produc- Iround water for 97,000 hectares on the Nantion in the arid North-West Region will increase River. A fisheries development scheme, annualas a result of a project covering about 160,000 surveys of water-associated diseases, and waterhectares, on Dart of which agricultural produc- resources studies are also included. Total cost:tion, based on earthen embankments designed $210 million.to maximize the use of rainfall, will be devel- THAILAND: Bank-$50 million. Overaged oroped. Embankments, or bunds, will be con- low-yielding rubber trees on 160,000 hectaresstructed or rehabilitated, 50 small irrigated will be replaced with new, high-yielding vari-farms will be developed, and extension serv- eties, thus helping to maintain and improve theices upgraded. Some 2,500 farm families will incomes of rubber growers - mostly small-benefit. Total cost: $13.2 million. holders-in southern Thailand. The project

SOMALIA: IDA-$8 million. About 100,000 comprises the Government's rubber replantingresettled nomads, victims of the 1973-74 program for the period 1976-80. Total cost:drought, are expected to produce their basic $148 million.food requirements as a result of the first emer- THAILAND: Bank-$21 million. As many asgency projects under the Government's drought 400,000 farm families-some 2,500,000 peoplerehabilitation program. In settlement areas in -will be provided either village access roads 59

(about 1,300 kilometers of such roads will be and credit for agricultural equipment. Studiesbuilt), water (4,000 tubewelis will be con- on the development of areas rid of riverblind-structed), or electricity (rural electrification ex- ness will also be prepared. The Arab Bank fortended to 346 villages). Improved agricultural Economic Development in Africa is contribut-techniques for upland farming will also be de- ing some $4.5 million of co-financing. Totalveloped in northeast Thailand. The loan is on cost: $16.2 million.Third Window terms. Total cost: $45 million. URUGUAY: Bank-$17 million. Pasture and

THAILAND: Bank-$5 milfion. Some 170,000 other ranch improvements and technical assist-farm families-over 1 million people-in 640 ance (for a credit program and for the trainingvillages of northeast Thailand will benefit from of technicians) will be provided by this project,a livestock development project designed to designed to increase beef and dairy productionincrease the quality and productivity of live- and exports. More intensive use of pasturesstock through the improvement of village pas- wvill free land for crop production, thus help-tures, animal husbandry practices, and disease ing to diversify agricultural production and ex-control methods, and through the expansion of ports. Total cost: $32.7 million.cross-breeding programs, vaccine production, YEMEN ARAB REPUBLIC: IDA-$10.3 mil-and livestock research. The loan is on Third lion. A supplement to the Tihama DevelopmentWindow terms. Total cost: $11.48 million. Project, approved in May 1973, and for which

TOGO: IDA-$9.5 million. Some 20,000 an IDA credit of $10.9 million was made. Thefarm families will benefit from a rural develop- Kuwait Fund for Arab Economic Developmentment project which will help improve and is providing co-financing of about $9.6 million.diversify crop production in both upland and YEMEN ARAB REPUBLIC: IDA-$5.2 million.lowland areas of the country's coastal region. The construction of a 20,000-ton grain silo atRoads, village stores and markets, dispensaries, Hodeida, six grain warehouses, and two Gov-tube wells, and small earth dams will be built, ernment-run bakeries, and provision of creditand consultant services, to carry out an irriga- to private bakers (combined with a nutritiontion study and prepare investment proposals component which includes vitamins and min-for areas cleared of riverblindness, will be pro- erals for bread fortification) represent the be-vided. The Fonds d'Aide et de Cooperation is ginnings of a long-term program designed toexpected to provide a co-financing grant of improve the handling, storage, and processingsome $2.2 million. Total cost: $15.7 million. of grain. The Saudi Fund is expected to partici-

TURKEY: Bank-S63 million. This first Bank pate in the financing of the project with aboutloan for institutional agricultural credit to the $11 milhion. Total cost: $21.8 million.country will affect about 120,000 people, most YEMEN, PEOPLE'S DEMOCRATIC REPUBLICof whom are poor, rural dwellers. Some 18,400 OF: IDA-$7 million. Some 5,000 farm familiesfarmers will be provided supervised investment (30,000 people) in the Wadi Hadramawt areand short-term input credit by the Agricultural expected to benefit from a project aimed at in-Bank of Turkey (TCZB); in addition, the TCZB, creasing agricultural production through thewhich will receive technical assistance, will provision of agricultural equipment and sup-channel loan funds to support agro-industries. plies, the construction of feeder roads, andThe loan will also enable the Turkish Cargo the establishment of extension services. AboutLines to buy a ferryboat to help establish an in- 40,000 rural inhabitants will benefit from antegrated road-sea transportation system across assurecl supply of safe water. Total cost: $7.74the Mediterranean to Italy and Yugoslavia. Total million.cost: $172.8 million.

TURKEY: Bank-$21.5 million. A five-year Development Finance Companieslending program by the Agricultural Bank ofTurkey (TCZB), coordinated with technical as- BANGLADESH: IDA-$25 million. Foreignsistance by the Livestock Directorate of the exchange will be made available to the coun-Ministrv of Food, Agriculture, and Livestock, try's industrial sector through the Bangladeshfor on-farm dairv investments will be financed. Shilpa Bank (BSB), an important source ofAbout 10,500 purebred cattle for breeding pur- medium-term and long-term financing for in-poses will be imported, and farm machinery dustry. BSB will give priority to financing in-and technical assistance will be provided. An- vestment in export industries and industriesnual milk production will increase by45 million based on domestic raw materials.liters and some 10,000 quality cattle will be BOLIVIA: Bank-$10 million. The Banco In-calved yearlv. Total cost: $34.7 million. dustrial S.A. (BISA), Bolivia's largest private de-

UPPER VOLTA: IDA-$9.4 million. The liv- velopment institution, will be assisted in itsing standards of some 120,000 people in 600 financing of private mining and industrial enter-villages will be boosted by a project to increase prises-especially to medium-sized enterprises.crop production and improve water supplies The IFC is making a simultaneous investmentthrough the development of 2,700 hectares of of up to $550,000 equivalent in BISA's sharelow-lying alluvial land, the establishment of capital.erosion control works, construction of wells, BRAZIL: Bank-$85 million. The Nationalvillage grain warehouses and teaching centers, Bank for Economic Development (BNDE) will 60

relend the proceeds of this Bank loan to 22 million. This second Bank loan to the East Afri-state and regional development banks which, can Development Bank will help meet the in-in turn, will sanction loans to small and me- stitution's foreign exchange requirements fordium-scale privately owned industrial enter- the financing of import components for indus-prises. As many as 40,000 new jobs might be trial projects in the three Community countriescreated and job skills of countless others will of Kenya, Tanzania, and Uganda.be upgraded through the various subprojects. EGYPT, ARAB REPUBLIC OF: IDA-$25 mil-Technical assistance is also being provided to lion. This second credit to the Bank of Alexan-BNDE to strengthen its capability to deal with dria will help expand and diversify its develop-state and regional development banks. ment finance operations in support of small

CAMEROON: IDA -$3 million. This first and medium-sized enterprises in the privateBank-assisted project in Africa designed to sector and some public sector industrial enter-benefit relatively small enterprises will help prises as well.about 80 small businesses, create employment GHANA: Bank-SIO million. The Nationalfor about 1,000 skilled workers, and increase Investment Bank (NIB), which gives major sup-the present 15% level of local ownership port to Governmental efforts to encourageamong total enterprises in the modern sector. Ghanaian initiative in the economy, will be pro-Money provided by the credit will be relent vided foreign exchange to help it finance smallby the Banque Camerounaise de D6veloppe- and medium-scale enterprises in the industrial,ment. The Caisse Centrale de Cooperation Eco- agro-industrial, and tourism sectors. The insti-nomique is lending $3 million to finance sub- tutional growth of the NIB is also to be assistedproject costs. through the improvement of its project ap-

CARIBBEAN REGION: Bank-$20 million. praisal capabilities and continued staff training.Development of several important economic INDIA: Bank-$40 million. Foreign ex-sectors in the Caribbean Commonwealth will change will be made available to the country'sbe supported by two loans to the Caribbean 18 state financial corporations (SFCs) for on-Development Bank (CDB). The loans will assist lending to small and medium-scale industries.the CDB in financing public and private sector The SFCs will receive the funds, which willprojects in eligible CDB and World Bank mem- cover their foreign exchange requirements forber countries for agriculture, agro-industry, two years, through the Industrial Developmentmanufacturing, tourism, transportation, public Bank of India.utilities, 'sites and services," and vocational IRELAND: Bank-$30 million. The industrialeducation and training. The proceeds of the Credit Company, Limited, will help provideloans (one of $3 million, is on Third Window industrial credit in the poorer regions outsideterms) extended to the CDB will be relent in County Dublin, where industrial enterprisesborrowing countries with the guarantee of the are generally small. Accordingly, about 40%Bahamas, Barbados, Guyana, Jamaica, Trinidad of the loan is to be used to help finance smalland Tobago, and the United Kingdom, as industries. The project will, therefore, supportrelevant. the Government's efforts to reduce regional

COLOMBIA: Bank-$80 million. The pro- imbalance and unemployment.ceeds of this sixth Bank loan to the countrv's IVORY COAST: Bank-$8 million. This firstvarious development finance companies (finan- loan to the Banque Ivoirienne de Developpe-cieras) through the intermediation of the Cen- ment Industriel will help provide foreign ex-tral Bank, will be invested in productive private change for industrial projects and create overenterprises, mainly in the industrial sector. 5,000 new jobs.Preference will be given those enterprises IVORY COAST: Bank-$5.6 million. As manywhich are export-oriented or have total assets as 130 small enterprises will be established orunder $3 million, and for projects involving in- enlarged, and about 1,600 jobs created as adustrial decentralization. The Inter-American result of this loan to the Credit de ia C6teDevelopment Bank is making a parallel loan of d'lvoire (CCI). Three areas in which lending is$30 million toward the project's cost, suitable-woodworking, garages, and bakeries

CYPRUS: Bank-$6 million. About 60% of -have already been identified.the foreign exchange requirements of the JORDAN: IDA-$4 million. Part of the for-Cyprus Development Bank over the next 30 eign exchange requirements of the Industrialmonths will be met, permitting it to finance Development Bank of Jordan for investment inabout 50 medium-sized industrial and service medium-scale and small-scale industrial enter-sector projects, including tourism; the loan is prises will be met. A study of small-scale indus-expected to assist in creating more than 1,500 tries and handicrafts will also be financed.jobs and increase exports. An initial amount KENYA: Bank-$10 million. This second loanof $750,000 will be utilized from the loan for to the Industrial Development Bank (IDB) willthe development of small-scale industries, a help finance a portion of its foreign exchangetraditional subsector in an economy in which requirements through 1978. IDB financing con-about 80% of existing manufacturing enter- centrates mainly on agricultural processing,prises are small and family-operated. including food and industrial raw materials,

EAST AFRICAN COMMUNITY: Bank-$15 forestry, and textiles. IDB roans are made in 61

accordance with the Government's policy of TANZANIA: Bank-$15 million. Resourcesindustrial decentralization. will be provided to the Tanzania Investment

KOREA, REPUBLIC OF: Bank-$55 million. Bank (TIB) for investment in industry, agribusi-The Korea Development Finance Corporation nesses, and tourism. The loan will meet thewill have part of its foreign exchange require- TIB's remaining foreign exchange needsments through 1977 covered under this fifth through 1977.loan, which will be used to finance imports of TUNISIA: Bank-$20 million. This sixth loanmachinery and equipment and the foreign ex- to the Banque de Developpement Economiquechange component of domestically produced de Tunisie (BDET) will provide part of the fundscapital goods and civil works. needed to help finance industrial development

KOREA, REPUBLIC OF: Bank-$30 million. projects in the country. BDET's main functionHelp in covering the foreign exchange require- is to stimulate industrialization and tourism de-ments of the Medium Industry Bank (MIB), velopment through the financing of sound andKorea's most important source of term finance productive investment projects.and technical assistance to small and medium- URUGUAY: Bank-$35 million. This firstsized industries, will be forthcoming. MIB plans Bank-supported operation in the country's in-to increase its lending in areas outside the dustrial sector will help support a lending pro-Seoul/Pusan industrial complex, thus contribut- gram to industrial export enterprises throughing to a more equitable regional distribution the newlv established Industrial Export Promo-of jobs and income. tion Fund (IEPF). The IEPF will relend the

MAURITIUS: Bank-$7.5 million. This sec- money to commercial banks which, in turn, willond loan (there has been one IDA credit) to the relend to enterprises for imported working cap-Development Bank of Mauritius will help the ital items and capital goods. The project alsocountry reduce its dependency on sugar by provides funds for technical assistance to Gov-creating new production and jobs in export- ernment institutions in the industrial sector.based, labor-intensive small and medium-scale YUGOSLAVIA: Bank-$50 million. The loanindustries and tourism. will finance the foreign exchange costs of small

MEXICO: Bank-$50 million. Fondo de and medium-sized industrial projects (exclud-Equipamiento Industrial (FONEI) is a trust ing agro-industries) in the country's four less de-fund managed by the Bank of Mexico. It pro- veloped regions. The loan is being made to thevides term finance to industrial enterprises largest bank in each region, each of which is athrough commercial investment banks. This mixed commercial and investment bank.second Bank loan will provide resources to ZAMBIA: Bank-$15 million. This loan to theFONEI which will be on-lent to enterprises to Development Bank of Zambia (DBZ) will helpfinance their equipment needs. The enterprises industrial development and diversify the cop-selected will have a favorable impact on the per-dependent economv. The loan will amountbalance of payments by increasing exports and to more than 40% of DBZ's foreign exchangesubstituting imports efficiently. requirements, and by filling in the remaining re-

MOROCCO: Bank-$25 million. Foreign ex- source gap, will enable it to cover its operationschange sufficient to finance the import com- through March 1978. The IFC is investingponent of most hotel development projects to $550,000 in the share capital of DBZ, estab-be undertaken in the country through mid-1978 lished with World Bank assistance in 1974.will be provided through a Government-con-trolled DFC specializing in housing and hotel Educationlending. Technical assistance aiming at the ra-tionalization of development policies in the ALGERIA: Bank-$47 million. This follow-uptourism sector will also be provided. Total cost: to the first Bank-assisted education project in$75 million. the country will help Algeria meet its growing

PHILIPPINES: Bank-$75 million. Proceeds demand for trained manpower in priority areasfrom this loan, made to the Government, will -basic education, vocational training, and gen-be relent to the Government-owned Develop- eral secondary and university education. Totalment Bank of the Philippines. Finance will help cost: $78 million.cover foreign exchange costs of capital goods BANGLADESH: IDA-$12 million. The qual-imports for medium-scale and relatively large ity of services provided to farmers will be im-industrial subprojects. Enterprises eligible for proved through the construction of and thesubloans will include those engaged in manu- provision of equipment for seven agriculturalfacturing, agro-industries, mining, ocean ship- training institutes, a graduate in-service trainingping, and tourism, unit at the Bangladesh Agricultural University,

SUDAN: IDA-$7 million. This credit, to the the Regional Academy of Rural DevelopmentIndustrial Bank of Sudan (IBS), will help provide at Bogra, experimental field facilities for exten-medium-term and long-term credit for the sion, in-service training of extension workers,country's industrial sector. The IBS will be able technical assistance, and a number of studies ofto help the Government meet its objective of the extension system. Total cost: $16.5 million.diversifying exports and promoting import sub- BOTSWANA: Bank-$10.5 million. Thestitution. country's education program, designed to meet 62

the manpower needs of the economy in the panded, and specialized services (particularlyearly 1980s, will be supported. Secondary curricula development, adult education, test-school places, as well as the numbers of trained ing, textbook production, and education plan-secondary school teachers, will be increased; ning) of the Ministry of Education will beadditional formal and nonformal educational strengthened. Total cost: $5.4 million.opportunities for out-of-school youths and MALAWI: IDA-$11.6 million. Twenty-twoadults will be provided; a training program for primary schools will be built as well as a likeprimary school leavers will be expanded; and a number of rural education centers, and onerural education development center will be teacher training college. Equipment is also in-constructed. Some $3.5 million of the loan is on cluded. The project aims at assisting the Gov-Third Window terms. Total cost: $15 million. ernment's education strategy which gives prior-

CAMEROON: Bank-$17 million. This third ity to the growth of primary education, the im-education project will assist the Government in provement of rural, secondary schools, and thethe creation or expansion and improvement of strengthening of nonformal schemes. Totalagricultural, rural health, and technical educa- cost: $14.5 million.tion facilities, which include three lower and MOROCCO: Bank-$25 million. Morocco'sthree upper secondary agricultural schools, a comprehensive strategy for rural education willhigher agricultural and livestock technician be enhanced through the expansion and re-training institute, and two lower secondary organization of the country's general, ruraltechnical schools. These investments will sup- health, and agriculture extension education.port the Government's rural development pro- Technical assistance in preparing a nationalgram and plans for technical education. The program for technical education and vocationalloan is on Third Window terms. Total cost: training will be provided. Total cost: $59.54$24.9 million. million.

GUATEMALA: Bank-$14.5 million. As many NICARAGUA: Bank-$11 million. Support-as 3,000 students annually-at the secondary, ing the Government's rural education and train-teacher training, and agricultural technical ing development strategy is this project tolevels-will be graduated after having been expand and improve educational and trainingprovided a more practical education, thus opportunities through the establishment ofequipping them with skills for further on-the- basic schools and community learning centers.job training. Total cost: $22.14 million. By 1981, almost 50,000 students will be en-

HAITI: IDA-$5.5 million. Designed mainly rolled in formal education courses, 7,000to increase educational opportunities in rural youths and adults will receive nonformal train-areas and to upgrade the qualifications of pri- ing, and lower secondary schools to be estab-mary school teachers, the project includes lished will be able to enroll some 8,600 stu-site development, construction, furniture, and dents. Total cost: $19.8 million.equipment for 65 new rural community learn- PARAGUAY: Bank-$4 million. The traininging centers, 10 new urban community learning program of the National Vocational Trainingcenters, extension of one and construction of Service will be expanded so that the urgenttwo new primary teacher training colleges, and needs of the economy for skilled and manage-technical assistance to undertake special studies rial workers might be met. Accelerated trainingand to help develop new curricula. Total cost: for rural youth, and in-plant training and man-$6.5 million. agement training will be emphasized. The loan

INDONESIA: Bank-$37 million. About is on Third Window terms. Total cost: $5.73,600 skilled workers, or 10% of estimated million.country needs, and about 11,600 semi-skilled PHILIPPINES: Bank-$25 million. Technicalworkers, or more than double the existing an- assistance, equipment, and facilities designednual training potential of the country, will be to increase the institutional capacity for thetrained annually in new education institutions continuous development of relevant textbooksbuilt under the project. Total cost: $65 million. will be provided. About 27 million textbooks

KENYA: Bank-$10 million. A third Bank- will be produced and distributed as a first phaseassisted education project will provide facilities of a program to introduce 98 million new textsfor 6,000 primary school teachers a year to at- into public primary and secondary schools bytend the Kenya Institute of Education and 17 1984. The project will help improve educa-primary teacher colleges. A new Educational tional quality and redress imbalances in educa-Broadcasting and Multimedia Service Station tional opportunities between urban and ruralwill benefit nearly 3 million primary pupils and areas. The loan is on Third Window terms.77,000 teachers. Total cost: $18 million. Total cost: $51.6 million.

LIBERIA: Bank-$4 million. Agricultural de- SIERRA LEONE: IDA-$7.25 million. This sec-velopment will be aided by a project designed ond IDA-supported education project in theto improve rural education. Primary school country will continue efforts begun under thebuildings in about 50 villages in counties with first project to diversify educational programslow enrollment ratios will either be replaced, at the secondary level. It will also support ruralexpanded, or constructed. A rural teacher train- and nonformal training and help improveing institute will also be improved and ex- educational planning, management, and man- 63

agement training. An Institute of Public Admin- teacher training institutes, training institutes foristration and Management will also be estab- agricuLitural technicians, and the Higher Insti-lished. Total cost: $11 million. tute of Agricultural Studies. Total cost: $48.5

TANZANIA: IDA-$11 million. Training for million.1,500 managers of ujamaa villages will be pro- Evided through a Village Management Techni- Electric Powercian Training Program, the first comprehensive AFGHANISTAN: IDA-$li million. The pur-program for in-service training in village devel- chase and installation of a 40 Mw gas turbineopment in the country. The managers-each power station in the Kabul area will help avoidwill be responsible for about five villages-will power shortages for the city's 50,000 electricityhelp villagers assess priorities, prepare develop- users; the project will also provide for the train-ment plans, and will train village officials in ad- ing of operation and maintenance personnel.ministrative skills. The project includes pro- Total cost: Sl1 million.vision for the improvement of 15 secondary ALGERIA: Bank-$57.5 million. A loan to theschools. Technical assistance has also been Societe Nationale de l'Electricite et du Gazprovided bv the aid agencies of Denmark, Fin- (SONELGAZ) will form part of SONELGAZ'sland, Iceland, Norway, and Sweden. Total cost: 1976-80 construction program. The project$15 million, consists of the transmission component, and

THAILAND: Bank-$31 million. A project studies designed to improve the company'sassisting two key areas of Thailand's educa- organization and to further its development.tional system - secondary schools and adult Total cost: $575 million.education-in support of the Government's BOLIVIA: Bank-$25 million. Help in financ-wide-ranging educational reforms program will ing a part of the five-year (1976177-1980/81)be assisted. Diversified curricula will be intro- expansion program of the Empresa Nacional deduced in 50 provincial secondary schools, and Electricidad, S.A. (ENDE) will be forthcoming.existing facilities will be equipped and ex- The program consists of a series of investmentspanded. The foundations of a nationwide adult to expand electric power generation and trans-education network will be set up through a mission in the ENDE operating area. Total cost:national coordinating unit in Bangkok, four $28.8 million.regional adult education centers, 24 provincial BRAZIL: Bank-$52 million. The growing re-"Lifelong Education Centers," and 8,400 village quirements for electric power in the state ofreading centers. Total cost: $78 million. Parani will be met as a result of a project which

TUNISIA: Bank-S8.9 million. The project includes needed investments in subtransmis-will help introduce a more relevant primary sion and distribution facilities. As many asschool curriculum and to increase the efficiency 141,000 new consumers, including 20,000 low-of the primary school system. Tunisia's pre- income households in the state's main cities,vocational training program, which provides will be connected to the statewide system.employment-oriented education in agriculture Total cost: $188 million.and industry, will be expanded. Also, each year, BRAZIL: Bank-$50 million. The project willabout 1,600 primary school leavers who cannot help three state power distribution companiesfind jobs will be trained and provided non- in northeast Brazil meet demand for electricformal education in two regional training cen- energy resulting from the recent rapid growthters. Total cost: $27.6 million. of the industrial sector and the concomitant ex-

YEMEN ARAB REPUBLIC: IDA-$8 million. pansion of commercial and residential powerFour new district training centers will provide demand. The project includes a pilot programcourses in literacy, basic occupational skills, to provide electric service to low-income urbanand agriculture; in addition, women will re- households. Total cost: $145.4 million.ceive instruction in health, hvgiene, nutrition, EL SALVADOR: Bank-$39 million. Help inchild care, and domestic crafts. As many as financing the foreign exchange costs (including20,000 rural inhabitants yearly will receive interest during construction) of the expansiontraining. The project will also strengthen and of the Ahuachapan Geothermal Power Plantexpand reform measures initiated through a will be provided. Studies will also be made ofprevious (fiscal 1974) IDA-assisted project by other geothermal fields in the country. Someintroducing more relevant training programs in $9 million of the loan is on Third Windowprimary teacher training institutes, while ex- terms. Total cost: $43.8 million.panding provisions for the training of women HAITI: IDA-$16 million. This first IDA-teachers. The UNDP will participate with about financed power project in the country, which$2.24 million in the financing of the project. includes the construction of a power station,Total cost: $11.9 million. related transmission and distribution facilities,

ZAIRE: IDA-$21 million. The quality and a training center, and technical assistance, isefficiency of education in rural areas will be designed to increase the supply of electricaided by a project comprising the construction, power in the Port-au-Prince area and help therehabilitation, and equipping of educational Government-owned power company becomefacilities located in rural communities through- more efficient and financially independent.out the country. Those facilities include primary Total cost: $18 million. 64

INDIA: IDA -$150 million. This fifteenth nomic Cooperation Fund of Japan, the KuwaitBank!lDA-assisted operation for power devel- Fund for Arab Economic Development, and theopment in the country will help finance a pro- United Nations Development Programme aregram of investment in high voltage transmis- providing a total of $30.5 million towards thesion during the period 1976-79 in four states cost of the project. Total cost: $68 million.as well as in load dispatch facilities to be in- PAKISTAN: Bank-$50 million. This project,stalled by two regional electricity boards. Total which forms part of the country's 500 kv trans-cost: $207.3 million. mission system eventually interconnecting the

INDIA: IDA-$57 million. A rural electrifica- large hydro facilities in the north with othertion project will benefit about 55,000 small- thermal facilities, includes the equipment forholder farmers; power will be made available and construction of more than 500 kilometersfor irrigation pumping, small industries, and for of transmission lines, the installation of a 220 kvhouses and street lighting in over 6,000 villages. switching station, and consulting services forTotal cost: $114 million. engineering and accounting, including training

INDONESiA- Bank-$90 million. Electric in 500 kv operations. Total cost: $113.8 million.power distribution facilities will be expanded PERU: Bank-$36 million. Assistance will beand voltage levels standardized in Jakarta and made available to help the state-owned powerneighboring cities in west Java. The project will company expand its transmission and distribu-provide part of the high priority requirements tion systems, and technical assistance to andin this area from 1977 to 1980 to market the training for state enterprises in thepower sectorincreased generation becoming available. The will be made available. By mid-1979, the num-Kuwait Fund for Arab Economic Development ber of households in poor suburbs of Lima withmay provide about $40 million. Total cost: public service electricity will triple. Total cost:S164 million. $137.4 million.

KENYA: Bank-$63 million. This loan will PORTUGAL: Bank-$36 million. This sixthhelp finance the construction of the Gitaru hy- loan to the power sector in the country (butdroelectric power station on the upper Tana the first Bank operation in 10 years), will helpRiver, thus completing the planned Seven finance a project consisting of the 1976-78Forks hydroelectric development of the river. tranche of a 10-year investment program in theThe project will help meet Kenya's increasing sector designed to improve and increase gen-need for electricity which, in the past decade, eration capacity and transmission and distribu-has grown by 8% yearly. Total cost: S135.9 tion facilities. Total cost: $1,124 million.million. ROMANIA: Bank-$50 million. A hydroelec-

LIBERIA: Bank-$1.8 million. About 43 man- tric power project on the Riul Mare and Streiyears of technical assistance will be provided Rivers (including the construction of a reser-the Liberia Electricity Corporation to help it voir, a tunnel to convey its waters to a powerprepare for increased demand for power over station, an underground power plant and anthe remaining years of the decade. Manage- above-ground powerhouse) will help the coun-ment will be strengthened, long-range plans try meet its growing demand for power. Totaldeveloped, and ways will be sought for the cost: $250 million.Corporation to earn a satisfactorv return on TURKEY: Bank-$56 million. This loan willinvestments. help finance the Turkish Electricity Authority's

MALAYSIA: Bank-$35 million. This seventh (TEK) transmission facilities and training needsloan to the National Electricity Board (NEB) for the years 1976-79. Substations will be built,will help finance an increase of 360 Mw in gen- TEK engineers will be trained in transmissionerating capacity and associated transmission- system design and operation, amanpowerstudydistribution lines. The project consists of the will be conducted of TEK's professional staff

.final extension of the Prai thermal power sta- needs for the years 1977-81, and a nationwidetion, installation of a 132 kv transmission line, power tariff study will be undertaken. Totalextension of the 11 kv distribution system to cost: $146 million.two rural areas, and consulting services. Totalcost: $171.3 million.

MOROCCO: Bank-$49 million. Through Industrythe construction of a dam and associated ALGERIA: Bank-$46 million. This loan to apower facilities, electric power availability will state-owned construction materials enterpriseincrease, and water will be provided to irrigate will assist in financing the construction of a17,000 hectares of land and to meet the growth cement plant capable of producing a half mil-of demand for potable and industrial water in lion tons a year. The distribution system of thethe Atlantic coastal zone to the year 2000. Total enterprise-Societe Nationale de Materiaux decost: $167.1 million. Construction-will be expanded through the

NEPAL: IDA-$26 million. A hydroelectric acquisition of 260 silo-railway cars and 190project 30 kilometers southwest of Kathmandu, trucks and reorganized through the executionwill replace use of energy equivalent to about of a program of studies. Technical assistance65,000 tons of oil a year, saving about $8 mil- will be provided to the state auditing and ac-lion in foreign exchange. The Overseas Eco- counting enterprise. Total cost: $214 million. 65

BRAZIL: Bank-$60 million. This fifth loan PERU: Bank-$40 million. Mining activitiesfor steel expansion in the country will help the in the central Andean region of the country areCompanhia SiderOrgica Paulista (COSIPA) to be improved through the replacement offinance its Stage Illi expansion of steel-making obsolete facilities, expansion of production, in-capacity. The project will expand COSIPA's raw creased processing, and a reduction of environ-steel production capacity from 2.3 million tons mental pollution. The fourfold expansion ofat the completion of Stage II to 3.5 million tons output at one copper mine and the construc-yearly. About 6,500 workers will be added to tion of a mine water treatment plant at anotherthe mill's labor force of 7,600 when Stage III will also be financed. Total cost: $146.5 million.attains full production in 1982. Other external ROMANIA: Bank-$20 million. Investmentslenders are the Inter-American Development in 223 enterprises to replace equipment andBank ($40 million) and bilateral sources. Total spare parts damaged by the serious floods ofcost: $1,446.4 million. JiLly 1975 will be made. About 120 kilometers

BRAZIL: Bank-$50 million. Assistance in of the national road system and 270 ki!ometersfinancing a fertilizer plant with a capacity of of the rail system will be reconstructed. Total1,200 metric tons per day of ammonia (most of cost: $221 million.which will be converted to urea) will be forth- TOGO, IVORY COAST, and GHANA: Bankcoming. The project will substantially improve -$60 million. A regional industrial complex,the availability of low-cost fertilizer to Brazil's though located in Togo, will be owned jointlyagricultural sector, and reduce Brazil's current by the three Governments, and will supplyheavy reliance on costly imported fertilizer. high-quality clinker required for cement pro-Total cost: $272 million. duction in the three countries. The project will

CHILE: Bank-$33 million. Investment sub- help reduce their dependence on clinker im-projects undertaken by two Government agen- ports, and the plant will provide 600 jobs whencies, the Chilean Copper Corporation and the in operation. A total of eight co-financers areNational Mining Enterprise, will be supported. helping finance the project. Total cost: $284The subprojects aim at maintaining, rendering million.more efficient, and, in a few cases, slightly ex- TURKEY: Bank-$70 million. Turkey's largepanding existing capacity to process copper ore but underutilized forest resources will beand by-products. The project should result in tapped by a newsprint project, designed toan increase in foreign exchange earnings to meet the country's growing need for newsprint.more than S$O million a year by 1980. Total Integrated sawmill and newsprint manufactur-cost: $76.8 million. ing facilities will be built near the town of

EGYPT, ARAB REPUBLIC OF: Bank-$52 Balikesir in western Turkey, a town site withmillion. The production capacity of two tex- housing for 1,000 people will be provided, andtile mills near Alexandria will be expanded technical assistance furnished. Total cost: $185and rehabilitated, and training and technical million.assistance to the textile sector, which accountsfor about 50% of employment in the industrial Nonprojectsector and 52% of the value of output, will beprovided to meet growing domestic and export BANGLADESH: iDA-$100 million. Foreigndemand. Parallel financing will come from the exchange will be made available for the im-Arab Fund for Economic and Social Develop- portation of industrial components, chemicals,ment. Total cost: $153.2 million. raw materials, spare parts, and packing mate-

INDIA: IDA-$105 million. The project will rials to enable selected industries, with par-help increase fertilizer production in the coun- ticular emphasis on jute and textiles, to main-trv's existing plants from about 60% of capacity tain or expand production.to about 90% by 1979. It will assist in removing INDIA: IDA-$200 million.') Some 800 me-production bottlenecks, improving pollution dium- and large-scale industries in key sectorscontrol, and increasing the production of in- of the economy will be able to maintain pro-dustrial chemicals. An additional 253,000 tons dulction and expand exports. The credit willa year of nutrients is expected. Total cost: $239 meet part of the foreign exchange require-million. ments during 1976-77 for imports of raw ma-

INDONESIA: Bank-$70 million. The coun- terials, components, and spare parts, and willtry's largest fertilizer company (PUSRI) will ex- provide $5 million for the foreign exchangepand its present annual capacity to produce an costs of technical know-how and "balancingadditional 570,000 tons of urea. Single-train equipment' needed to modernize selectedammonia and urea units with capacities of industries.1,000 metric tons and 1,725 metric tons a day KOREA, REPUBLIC OF: Bank-$75 million.respectively will be built. Parallel financing in Funds will be made available to help meet thethe amount of $70 million from the Saudi Fund foreign exchange requirements of Korea's pri-for Development will be forthcoming. After vatesectorforthe importation ofselectedessen-this expansion, PUSRI's annual capacity will tial capital and intermediate goods. The goodsreach about 1.6 million tons of urea. Total cost:$186 million. (") Categorized as 'Maintenance imports" elsewhere. 66

to be bought with the proceeds of the loan are BURUNDI: IDA-$1.5 million. Key person-intended primarily for export industries. nel will be recruited in the planning ministries

PAKISTAN: IDA-$50 million. The credit will and the Bureau Technique d'Etudes (10 man-help meet the country's foreign exchange re- years of long-term advisory services and 150quirements for the importation of essential man-months of short- and medium-term con-capital and intermediate goods needed for sultant services). Improvements will take placeagricultural and industrial development. Most in preinvestment and feasibility studies neededof the goods will be directly imported by pri- for project preparation. Total cost: $1.7 million.vate firms through normal commercial channels. INDONESIA: Bank-$13 million. A reliable

PARAGUAY: iDA-$4 million. The credit natural resource data base, as well as a perma-,will help finance a preinvestment project con- nent institutional capability for updating and

sisting of various studies to be carried out analyzing resource information required formainly in the transportation, agriculture, tour- planning agriculture, transmigration and landism, and education sectors. The project is ex- settlement, timber and mineral extraction, andpected to improve budgeting and resource al- related transportation investment, will be estab-location, increase the number of high priority lished through a national resource survey andpublic sector projects, and contribute to a more mapping project. Base mapping, navigationaleffective coordination of external financial as- charting, and resource evaluation will be sub-sistance. Total cost: $6.15 million. stantially accelerated and improved through

provision of aerial photography, geodetic con-Population and Nutrition trol, remote sensor imagery, acquisition of

equipment, construction of facilities, and train-BRAZIL: nutritiojc designedet ing and technical assistance. Total cost: $46

Bank-assisted nutration project, t esignea to million.strengthen Brazil's capability to upgrade the SUDAN: IDA-$4 million. A three-year pro-nutritional standards of the population, may gram of project preparation studies (involvingimprove, over the next four years, the health as many as 130 man-years of consultants' ser-and performance of more than 100,000 chil-dren. Others benefiting will include pregnant vices) will be financed. After expanding theand lactating women from low-incomefamilies. capacity of local inStitLutions to execute prein-Studies will be undertaken to determine the vestment work, projects will be selected formagnitude of the malnutrition problems in the study from among various high priority sectorscountry, the effectiveness of different nutrition and subsectors, including railways, feeder"delivery systems" will be tested; food forti- oads, rural and lvestulycTdhe Kupwait Fund isficants and low-cost nutritious food will be de- tin, a water supply. the Kuwait cosveloped, tested, and produced; and technical lending $3 million towards the project's cost.assistance will be provided. Total cost: $71.9 TANZANIA: IDA-$6 million. To help themillion.TAZNAID-6mlinTohpteJmiTliCA Bank-$6.8 million. By supporting Government meet demands for skilled man-

JAMAiCA: Bank-$6.8 miiton. By supporting power, this technical assistance project in-the National Family Planning Program, pri- marily through the construction and equipping cludes consutndg feaseibiity Studies in theof health centers, provision of technical assis- industrial, mining, transport, and communica-tance, and the purchase of vehicles, this second tions sectors, and for special studies designedBank-supported population project aims to re- to increase the utilization of existing invest-duce fertility rates (from 182 births per 1,000 ments. Overseas training for Tanzanians inwomen in 1974 to 150 per 1,000 women in rnent prearat i ng fon, aianta-1980) by further development of health and project preparation, evaluation, implementa-family planning services, a reduction of mal- tion, and related skills will also be provided.nutrition among pregnant and lactating women

-and small children, and technical assistance to Telecommunicationsthe Ministry of Health and Environmental Con- FIJI: Bank-$5 million. International tele-trol. Total cost: $13.2 million. communications, telex, and local and long-

,Technical Assistance distance telephone services will be improved,and automatic switching equipment for 5,400

BANGLADESH: IDA-$7.5 million. Technical additional lines will be provided. Total cost:assistance subprojects will be financed. The $14 million.funds are expected to be used primarily for NIGER: IDA-$5.2 million. Designed to im-feasibility and engineering studies and other prove the quality of Niger's telecommunica-investigations required to prepare projects for tions facilities, especially its long-distance net-externat financing, with emphasis on the agri- work, the project includes provision of trunkcultural and water development sectors. Some switching equipment, 3,800 lines of automaticof the proceeds will also be used to strengthen switching equipment, overhead line and carrierthe institutions responsible for project prepara- equipment, three VHF links and one HF radiotion and implementation through staff training link, and, in addition, engineering and financialor management assistance. consultant services. Total cost: $6.5 million. 67

SYRIA: Bank-$28 million. The Syrian Tele- Transportationcommunications Establishment will be able tomodernize and improve services to existing BANGLADESH: IDA-$4.6million.Asupple-subscribers, connect over 80,000 new sub- ment to the original credit (August 1973) forscribers, and provide increased traffic capacity $4.1 million which included funds for the repairas a result of a project which also includes the of the offshore oil terminal at Chittagong. Laterestablishment of a new telecommunications studies revealed that damage to the terminaltraining center in Damascus. Total cost: $145.6 was more extensive than had been thought.million. This supplement will help finance a modified

THAILAND: Bank-$26 million. The local oil transfer system as recommended by con-network capacity of the country's telecommu- sultants. Total (additional) cost: $7.2 million.nications system in both the Bangkok area and BENIN, PEOPLE'S REPUBLIC OF: IDA-S9the hinterland will be expanded; as many as million. A supplement to the $11.8 million IDA50,000 new connections will be made; the credit of July 1973 for a second highwaynumber of towns and villages with telephone project.service will increase by 40%; and, in rural BOTSWANA: Bank-$5.8 million. This thirdareas, 42 small towns and villages will be pro- road project will help finance the construc-vided telephone service for the first time. Total tion of the 52-kilometer Gaborone-Molepololecost: $94.13 million. road, which serves about 60,000 people, most

of whom are small farmers engaged in cattleTourism raising and crop cultivation. Engineering for

future road construction and technical assis-THE GANMBIA: IDA-$4 million. Help will be tance are also included. Total cost: $7.4 million.

provided in financing infrastructure for tourism BRAZIL: Bank-$75 million. Improvementsdevelopment. The Gambia hopes that its for- to the Sao Paulo State Railway Company will beeign exchange earnings, now heavily depen- made. Especially affected by the project will bedent on groundnut production, can be in- low-income residents of the city's suburbs whocreased, and that additional employment will must ride on the line's obsolete and crowdedbe created during periods of low agricultural commuter trains. Track will be rehabilitated,employment. In addition to basic infrastructure and locomotives and rolling stock purchased.(roads, sewerage system, telecommunications The loan is seen as complementing recent Bankfacilities, etc.!, a hotel training school will be assistance to the federal railways system. Totalbuilt, and a food storage and marketing pro- cost: $762.4 million.gram to encourage local production of food- BRAZIL: Bank-$55 million. About 10,000stuffs will be implemented. The African Devel- kilometers of secondary and feeder roads, link-opment Bank and the Kreditanstalt fur Wieder- ing existing agricultural areas to federal andaufbau (Germany) are also helping to finance state primary highway networks, will be con-the project. Total cost: $11.3 million. structed, rehabilitated, or improved. Agricul-

JORDAN: IDA-$6 million. Tourism facilities tural development will be fostered, transportand supporting infrastructure at the ancient of essential farm inputs facilitated, and isolatedsites of Petra and Jerash (on the East Bank) will communities opened up to economic oppor-be upgraded. At the same time, the archaeo- tunities. Total cost: S237 million.logical assets of those sites will be preserved, CAMEROON: IDA-$15 million. A supple-representing the first involvement of the Bank ment to the $24 million credit of Septemberin a project designed to realize the earnings 1973 for a second highway project.potential of historical monuments. Increased CAMEROON: Bank-$2.3 million. A feasibil-tourist flows and entrance fees will generate ity study will seek to determine the capacitysubstantial foreign exchange benefits and demand for railway terminal facilities in thecreate 1,200 new jobs. Total cost: $12.1 million. area of the country's major economic center,

MOROCCO: Bank-$21 million. Infrastruc- Douala; the project also includes final engi-ture works and public facilities for the develop- neering studies of the new Douala railway sta-ment of a new tourism complex on the Bay of tion and marshalling yard. Consulting servicesAgadir will be constructed. When all planned will cover railway operation, commercial activ-accommodations have become fully opera- ities, and management; capacity restraints ontional in 1989, foreign exchange earnings of the Douala-Yaounde corridor will be studied.about $37 million yearly will be generated and Total cost: $2.9 million.as many as 4,400 people will be directiv em- CONGO, PEOPLE'S REPUBLIC OF THE: Bankployed, with an estimated additional 7,200 jobs -$38 million. Through technical assistanceprovided through indirect employment. The provided to the Agence Transcongolaise deproject also includes funds for road construc- Communications, the agency responsible fortion and the elimination of harbor pollution, the development of rail transport in the coun-which would enhance Agadir's tourism assets try, the Congo's role as a major transit countryand alleviate some of the city's problems for exports from landlocked Central African Re-caused by its rapid growth following the 1960 public, southeastern Cameroon, southernearthquake. Total cost: S44 million. Gabon, and southern Chad to the port of 68

Pointe Noire on the Atlantic Ocean will be sistance to the implementing agency-thestrengthened. Nine sources of co-financing will Ministry of Public Works, Mining, and Geologyprovide grants and loans totaling about $155 -and training of mechanics and equipmentmillion. Total cost: S233.8 million. operators. Total cost: $18.6 million.

COSTA RICA: Bank-$39 million. With the HONDURAS: Bank-$3 million. A supple-construction of two new main highways, the ment to the Bank's $6 million second port loan,first all-weather road from the capital, San Jose, made in June 1971.to the Caribbean will be completed, helping INDIA: IDA-$110 million. This thirteenthto bring some previously isolated areas into railways project to be supported by IDA willthe mainstream of the country's economic life. include the manufacture of 350 locomotives,

*Total cost: $74 million. about 300 electric multiple units, 1,500 coaches,ECUADOR: Bank-$33.5 million. The insti- and 20,000 freight cars. Electrical, track, and

tutional and operating conditions of the port other works, as well as procurement of spare.of Guayaquil will be improved. Additional parts are also included. Total cost: $1,010

berths and facilities-including the country's million.first bulk cargo terminal-will relieve the con- INDONESIA: Bank-$130 million. More thangestion caused by faster-than-anticipated traf- 1,000 kilometers of roads in Java, Sumatera, andfic growth, and will permit handling increases Bali will be improved, detailed engineeringin cargo traffic forecast through the mid-1980s. made on more than 4,000 additional kilo-Total cost: $83.6 million. meters of roadways, and studies undertaken of

ECUADOR: Bank-$10.5 million. About 49 the feasibility of future improvements to 7,000kilometers of road through a rich, agricultural kilometers of highways. Technical assistance toregion will be improved. A road maintenance help strengthen the country's highway authori-program will be set up, a program to improve ties in planning, budgeting, construction man-the capabilities of the country's road construc- agement, training, and mobilization of consult-tion industry launched, agricultural studies un- ing and construction industries will also bedertaken for the area affected by the project, provided. Total cost: $234 million.and a program designed to improve planning INDONESIA: Bank-$68 million. PUSRI, theand coordination in the transport sector. Total Government-owned fertilizer company, willcost: $21 million. establish an integrated distribution system so it

EGYPT, ARAB REPUBLIC OF: Bank-$45 mil- can effectively distribute its increasing fertilizerlion. The port of Alexandria will be rehabili- production from the south Sumatera plantstated and modernized through dredging, con- to Java, north and west Sumatera, and otherstruction of a new berth, the purchase of islands. Total cost: $130 million.needed equipment, the opening of a new chan- INDONESIA: Bank-$54 million. Part of thenel, establishment of a new cargo area, and first phase of the Government's Inter-islandother related activities. Technical assistance Fleet Development Program for the periodwill also be provided to the Alexandria Port 1974-79, the project is designed to modernize,Authority. Co-financing is expected from expand, and improve the efficiency of the inter-USAID and the Overseas Economic Coopera- island fleet. Ninety-four new and used ships,tion Fund of Japan. Total cost: $151 million. representing about 10% of the present Indo-

GHANA: Bank-$18 million; IDA-$10 mil- nesian shipping fleet, will be acquired underlion. This two-fold project is designed to im- the project. The project is being co-financedprove existing roads by implementing the first by Norway ($99.7 million) and the Japanesefour-year phase of the Ghana Highway Author- Overseas Cooperation Fund ($25 million). Totality's eight-year road maintenance program; and cost: $195.2 million.to help the domestic contracting industry IVORY COAST: Bank-$43 million. Pave-through the Bank for Housing and Construc- ment on about 200 kilometers of road will be

Ition. The United Nations Development Pro- strengthened, 27 kilometers on one road willgramme, the United Kingdom, and Canada are be realigned, and 45 kilometers of highwayscontributing about $700,000 as technical as- will be constructed. Equipment for trafficsistance grants. Total cost: $35.8 million. counting, vehicle weight control, and pave-

GREECE: Bank-$30 million. The Patras- ment surveys will be bought, and technicalPyrgos-Olympia highway will be reconstructed, assistance provided. Total cost: $69 million.and institutional reforms in the transport sector KOREA, REPUBLIC OF: Bank-$90 million.will be initiated so that benefits the country This third Bank-assisted highway project in-derives from its highway system can be maxi- cludes the construction and paving of aboutmized. Total cost: $64.7 million. 195 kilometers on four national highways, pav-

GUINEA: IDA-$14 million. This project, de- ing and improvements on a total of about 600signed indirectly to enhance the Government's kilometers on nine national highways, andrevitalization efforts in the agriculture sector, feasibility studies of about 1,200 additionalincludes rehabilitation and initiates proper kilometers of roads, to be followed by detailedmaintenance of almost 2,500 kilometers of engineering if found to be justified. The projectroads, repair of equipment, purchase of high- is designed to reduce freight and passengerway equipment and spare parts, technical as- transport costs, and to provide easier access to 69

some isolated areas with high economic poten- Centrale de Cooperation. Total cost: $27.55tial. Total cost: $220 million. million.

LESOTHO: IDA-$5.5 million. Two road sec- MEXICO: Bank-$100 million. The operat-tions strengthening the link between Thaba ing efficiency of Ferrocarriles Nacionales deTseka, the commercial focus of the central Mexico will be improved, track rehabilitated,mountain section, and Maseru, the capital, will telecommunications modernized, and urgentlybe improved and reconstructed. A labor-inten- needed rolling stock and machinery purchased.sive construction unit will be formed. This unit The project forms a part of Nacionales' $1,401will gain experience with labor-intensive meth- million five-year (1975-79) plan. Total cost:ods for coping with future employment emer- $576 million.gencies and providing a basis for a long-term NICARAGUA: Bank-$5 million. An amend-employment strategy. The hope is that job ment to a loan (increasing it from $11 millionopportunities might be created at home which to $16 million) to the Corinto Port Authoritywill attract would-be emigrant workers. (About for a port project approved in January 1973.60% of the country's labor force now works NIGER: IDA-$15.6 million. This third IDA-in South Africa.) Financing for the project is assisted highway development project in thealso to be provided by the Overseas Develop- country aims at consolidating and expandingment Ministry of the United Kingdom. Total highway maintenance efforts and improvingcost: $8.61 million. major trunk roads in the south which support

LIBERIA: Bank-S27.5 million. The agricul- agricultural development. The project is alsotural heartland of the country will be opened designed to provide better transport connec-up by the realignment of one principal road tions for export-import traffic flowing via Ni-and the building of almost 250 kilometers of geria. The Arab Bank for Economic Develop-feeder roads, and access to the port of Mon- ment in Africa and the African Developmentrovia will be aided by the construction of a Bank are providing $10.6 million toward thehighway bridge and the upgrading of a major project's costs. Total cost: $28.7 million.thoroughfare in the capital. Additionally, tech- PERU: Bank-$76.5 million. Help in financ-nical assistance will be provided the Planning ing a transport corridor linking the Pacific coastDivision of the Ministry of Public Works, and and the Peruvian hinterland will be made avail-a study of Monrovia's urban development and able. About 375 kilometers of roads will betransport system will be made. Total cost: $46.4 improved, resurfaced, or paved, and 110 kilo-million. meters of feeder roads will either be improved

MADAGASCAR: IDA-$22 million. An all- or built. In addition, two new ports on theweather direct land connection between Tana- Amazon River will be constructed, and anothernarive and the western part of the country will improved. Total cost: $128.7 million.be built and part of a major arterial highway RWANDA: IDA-$9.5 million. A supple-reconstructed. An area with substantial agri- mentary credit made in December 1975 in sup-cultural potential will be opened up and trans- port of the country's road construction andportation costs will be reduced. The Arab Bank highway maintenance program, with co-financ-for Economic Development in Africa is provid- ing of $5 million by the Saudi Fund for De-ing co-financing of $5 million. Total cost: velopment.$31.8 million. SENEGAL: Bank-$15 million. This third

MADAGASCAR: IDA-$5.6 million. An Bank-assisted highway project aims at protect-amendment to the Bank loan and IDA credit ing past investments through the consolidation($15 million each) made in January 1973 in and expansion of maintenance of the existingsupport of the Government's road construction highway network. The provision of technicalprogram. assistance will help build up the Government's

MALI: IDA-$10 million. The third IDA op- planning capacity in the transport sector anderation in the country's highway sector, the establish a program designed to improve theproject will continue to help the Government's capacity of the domestic construction industryprogram for improvement of road maintenance to participate in major road works. Total cost:and of agricultural feeder roads. It will help $24 million.increase agricultural production, improve effi- SENEGAL: Bank-$6.6 million. About 1,250ciency of the road transport industry, and re- kilometers of feeder roads will be improvedduce vehicle operating costs. Total cost: $13.4 and maintained. Technical assistance will alsomillion. be provided for project implementation and

MAURITANIA: IDA-$8 million. The port of monitoring. The loan is on Third WindowNouadhibou will be improved through the terms. Total cost: $8.5 million.construction of fishing and commercial berths, SOMALIA: IDA-$5.2 million. The port fa-a sewerage scheme, various buildings, and the cilities at Mogadiscio will be expanded by thepurchase of a harbor master's launch and navi- extension of the breakwater and the additiongation aids maintenance equipment. Technical of a berth. When completed, the new port isassistance will also be provided. Co-financing expected to handle about two-thirds of thewill be obtained from the Kuwait Fund for country's imports, and about one-third of allArab Economic Development and the Caisse exports. Total cost: $6.45 million. 70

SUDAN: Bank-$20 million; IDA-$9 mil- and planned transport facilities in the Kualalion.Two new airports (at Port Sudan and Wau) Lumpur area will be supported. In addition,will be built, the runway and terminal build- 2,100 squatter households, some of which wereing of another (at Malakal) reconstructed, and displaced by highway development, will bea new terminal at yet another (at Juba) will be provided with infrastructure services near theirbuilt, thus helping bridge the considerable dis- old homes, and other households and busi-tances between potential areas of production nesses will be provided residential and busi-and consumption in Africa's largest country. ness "sites and services." Technical assistanceThe Bank loan is on Third Window terms. Total will be provided for the preparation of a na-cost: $86.2 million. tional "sites and services" program, emphasiz-

TRINiDAD AND TOBAGO: Bank-$7 mil- ing integrated development of small-scale in-lion. Severe traffic congestion along the East- dustries and low-cost housing. Total cost: $72

,West Corridor, the main artery between Port- million.of-Spain, the manufacturing and commercial PERU: Bank-$21.6 million. As many ascenter, and the rest of the country will be alle- 200,000 slum residents in Lima and Arequipaviated. Almost 100 kilometers of paved rural will benefit through provision of infrastructureroads will be strengthened, and technical assist- for water supply, sewer, and electricity con-ance will be provided to the Government's nections; the construction of access roads (inHighway Division and the domestic contract- Lima); and health and nutrition centers (in Are-ing industry. Total cost: $28.5 million. quipa). Industrial "sites and services" will be

TUNISIA: Bank-$28 million. The Bank's sec- included in both communities, while in Lima,ond highway project in the country will im- core housing and commercial "sites and serv-prove about 225 kilometers of primary and ices" will be provided. Technical assistance forsecondary roads and thus reduce transport project components is also included. Total cost:costs. Also, technical assistance will be pro- $43.2 million.vided for updating the 1968 Transport Survey PHILIPPINES: Bank-$32 million. Aboutand for preparing a rural roads program in less 180 000 residents of Tondo one of Manila'sdeveloped regions. Total cost: $52.3 million. ' sl,, , K ,

YEMEN, PEOPLE'S DEMOCRATIC REPUBLIC worst slums, will benefit from an urban de-OF: IDA-$3.2 million. The port of Aden at and other social servnwhicch health, nutritionthe southern entrance to the Red Sea, under- integrated with improvements in water supplylutilized during the closure of the Suez Canal, iegrate, d wihimpoem ens In water supp,,,will be rehabilitated. The project will enable sewerage, and dige facilities In neighbor-the ortto rsum saf an adeuat seric- ing Dagat-Dagatan, the first phase of a "sitesthe port to resume safe and adequate servic- and services" settlement will be developed.ing for the initial increase in shipping traffic Technical assistance will also be provided thethrough the now-opened Canal. The Arab Fund new National Housing Authority and the Ma-for Economic and Social Development is lend- nil Metropolitan Comnission to htelp theMing $13.6 million toward the rehabilitation develop urban programs Some $10 million ofcosts. Total cost: $17.6 million. devlop urban Thira ms. Ton of

YUGOSLAVIA: Bank-$49 million. A 736- the loan is on Third Window terms. Total cost:kilometer-long oil pipeline, capable of trans- 65 million.porting up to 400,000 barrels of petroleum a Water Supply and Sewerageday by 1979, will be built from the port of INDIA: IDA-$40 million. The quality ofOmisaij on the Adriatic Sea to the town of water supply and sewerage systems in five ofPancevo, near Belgrade, with a branch line to the largest towns in the state of Uttar Pradeshthe Hungarian border, making possible the tlart be raitedn and the suppt y of Uttr P ora

transtofoiloHugary and Czecho2,000 villages improved. About 5 million cityStorage tanks, pump stations, a control system, dwellers and 1.2 million villagers will benefit.associated equipment, and engineering services Total cost a75 million.are also included. The pipeline will serve fiverefineries in Yugoslavia. Co-financing is being KENYA: Bank-$35 million. An additionalprovided by agencies in Czechoslovakia, Hun- 300,000 people will be serviced with a reliablegary, Kuwait, and Libya. Total cost: $377 million. supply of water in Mombasa and nearby coastal

YUGOSLAVIA: Bank-$40 million. Construc- areas, and existing services will be improved.tion of highway sections totaling about 90 Technical assistance to the Water Departmentkilometers in three republics will relieve con- of the Ministry of Water Development will begestion on two highways of international im- provided for improving the operation and man-portance and will help meet the heavy traffic agement of the Coast Province water organiza-generated by the country's growing manufac- tion and for preparation of a countrywide ruralturing and tourism industries, and international water supply project. Total cost: $75 million.traffic. Total cost: $117.4 million. MALAYSIA: Bank-$21.5 million. The popu-

lation in the Federal Territory of Kuala LumpurUrbanization with sewerage service by 1981 will double to

MALAYSIA: Bank-$26 million. Government 400,000 as a result of this project, the first stagemeasures to make more efficient use of existing of a 30-year plan to extend sewerage facilities 71

throughout the Territory. Total cost: $60.5 ones built; water mains and distribution pipesmillion. will be installed or replaced; collectors and

MEXICO: Bank-$40 million. This loan will main sewers will be constructed; and new sew-cover part of the financial needs of a new pro- age treatment facilities installed. Implementa-gram to improve water supply and sewerage tion of the project is to be coordinated withservices in medium-sized cities throughout the simultaneously approved air pollution con-Mexico. Eight cities have been selected to start trol project. Total cost: $95.7 million.the program; the cost of improving services YUGOSLAVIA: Bank-$38 million. The usefor them is estimated at $100 million. About of low-grade lignite as fuel, which has resulted580,000 people will benefit from improved in Sarajevo's being one of the most pollutedwater services and 642,000 from sewerage fa- (with sulfur oxide) cities of its size (300,000)cilities. Technical assistance is also being pro- in the world, will be reduced through a projectvided. Total cost: $100 million. which will convert central heating plants and

PAKISTAN: IDA-$26.6 million. More than new household connections to natural gas. A2 million people living in Lahore will benefit natural gas transmission line will be built fromfrom an improvement and expansion of the near Belgrade to Sarajevo and a distributioncity's water supply, and an additional 250,000 ring and service connections constructed. Totalpeople will benefit from a 20% expansion of cost: $74.9 million.the citv's sewer system. Total cost: $47.9 million. YUGOSLAVIA: Bank-$20 million. Planning

PANAMA: Bank-$12 million. The water and management of water resources within thesupply systems in the cities of Panama, Colon, Morava River basin (in the Republic of Serbia)Arraijan, and Chorrera will be improved. Water will be improved so that water-related prob-will be supplied to the new fishing port at lems can be overcome and economic develop-Punta Vacamonte, and both the water supply ment in the least developed areas of the regionand sewerage systems of El Chorrillo, a low- accelerated. Water and sewerage systems willincome Panama City suburb, will be rehabili- be provided for the towns of Titovo Uzice andtated. Total cost: $20.5 million. Cacak, two pilot irrigation projects will be un-

SYRIA: Bank-$35 million. The residents of dertaken, and studies on regional economicDamascus will benefit, either through house development, water quality, and flood hazardsconnections or through public taps, from the will be carried out. Total cost: $51.4 million.first major expansion of the city's water supply ZAIRE: IDA-$21.5 million. The water sup-and distribution system in more than 40 years. plv systems of six major cities with an aggregateSupplies of water will be increased, and water population of 1.5 million, onlv a third of whichshortages and related health hazards curtailed, today have ready access to water, will be im-The Arab Fund for Economic and Social De- proved. The project, expected to reduce thevelopment is providing $40 million in co- high incidence of waterborne diseases amongfinancing. Total cost: $137 million. the urban poor, is being co-financed by the

YUGOSLAVIA: Bank-$45 million. Sarajevo's Arab Bank for Economic Development in Africa,old water and sewerage systems will be reha- the African Development Bank, and the Unitedbilitated and expanded. Existing pumping sta- Nations Development Programme. Total cost:tions and reservoirs will be expanded and new $70.4 million.

72

Technical Assistance

Technical Assistance given to Bank financial support on a grant ora loan basis.

The provision of technical assistance to mem- The Bank often serves as executing agencyber countries has become a major component for UNDP-financed projects. During the year,of the Bank's activities. Many of the Bank's the UNDP was faced with a temporary financialborrowers look to the Bank for assistance in situation that would have required a significantidentifying, preparing, designing, and carrying reduction in the level of its assistance in manyout projects, and in strengthening national developing countries. In order to facilitate theinstitutions with economic development re- continued execution of many UNDP preinvest-sponsibilities. ment and technical assistance projects, critical

The economic, sector, and project analysis or important to Bank lending, the Bank agreedundertaken by the Bank in the normal course of to defer calling on the UNDP for funds to coverits operations is the vehicle for considerable its disbursements as executing agency, up totechnical assistance. In addition, project loans a ceiling of $15 million; the UNDP undertookand credits may include funds earmarked spe- to pay in 1977 the amounts deferred.cifically for feasibility studies, resource surveys, In fiscal 1976, the Bank agreed to serve asmanagement or planning advice, and training. executing agency for 29 new projects forDuring the year, 152 lending operations made which the UNDP committed $15.9 million.specific provision for technical assistance, for a These included a $3 million feasibility studytotal of approximately $218 million, as com- and engineering for an electric power project inpared with $160 million for 139 operations in Nepal, which will meet the country's powerfiscal 1975; a number of loans and credits were demands and will substitute for other importedalso made exclusively for technical assistance. energy sources, mainly oil; a three-year, $2.5Many of these operations are described in the million preinvestment assistance project inregional sections of the Annual Report. Burma to help the Government identify priority

Reimbursable technical assistance was ex- projects for investment, undertake feasibilitytended during the year to some oil-exporting and engineering studies, and carry out projectdeveloping countries which do not now borrow preparation; a three-year, $3 million Indusfrom the Bank. Most of this assistance-provi- basin planning project in Pakistan, designed tosion of advice, especially, and, in a few cases, raise the capability of the Water and Powersecondment of staff to regional and national Development Authority through on-the-jobinstitutions-was related to investment deci- training of its staff; and a $1 million powersions contemplated by the countries in the sector survey in Egypt.fields of industry, education, agriculture, and In a traditional sector, transport, approxi-manpower planning. The assistance was com- mately $1.5 million was committed by the,parable to the services the Bank provides its UNDP for the execution of studies in Ghana,borrowers in the course of its lending Guyana, Mali, Nepal, and Uruguay. Aggregateoperations. commitments for projects in other sectors

During the year, the Yemen Arab Republic, amounted to approximately $2.9 million, andlone of the world's poorest countries, received were executed in the sectors of agriculturea Bank grant of $120,000 for economic planning ($125,000); industry ($927,000); public utilitiesassistance, the third grant to the country for that ($997,000); tourism ($72,000); and educationpurpose. ($225,000), among others.

The Bank provides technical assistance on a The need for improved planning institutionsgrant basis only in limited amounts, and in rare continues to be a priority requirement in manycases. It encourages its member governments to develo.ping countries. Acting as executingseek grant financing elsewhere, most particu- agency, the Bank completed two planning proj-larly from the United Nations Development ects during the year, in Ethiopia and Jordan,Programme (UNDP), the major source of grants and embarked on two new ones, in Korea andfor technical assistance within the United Na- the Philippines. Five other projects were intions system. The Bank explores the possibility progress: in Indonesia, Liberia, Sudan, Swazi-of UNDP financing before consideration is land, and Zaire. The planning projects normally 73

Children play in front of their whitewashedschoolhouse in rural Ecuador. Over $1,500 millionhas been approved by the Bank since 1963 foreducation in developing countries.

provide long-term advisers and short-term con- In addition to the project analysis coursessultants, as well as a variety of training and repeated in fiscal 1976-rural development,fellowship programs. agro-industry, agriculture, development bank-

Work carried out with UNDP financing led ing, water supply and waste disposal, transpor-to an estimated $1,400 million of Bank lending tation, and urban growth-EDI added two newduring the year. This brought to $5,400 million courses in its Washington program, one onthe cumulative total of such follow-up invest- rural credit, and the other on preparation, eval-ment. uation, and management of highway projects.

As in previous years, one course on nationalEconomic Development Institute economic management was held at the Institute.

Almost 5,000 participants have attended Eco- Of the year's 20 overseas courses, seven werenomic Development Institute (ED I) courses in regional courses open to nationals of a numberWashington and overseas since EDI's estab- of countries. EDI again cooperated with thelishment 20 years ago, and of these, no less than African Development Bank, the Economic852, or 17% of the total, participated during Commission for Africa, and the African Insti-the past year. The overseas training program tute for Economic Development and Planninghas now become the major element, with al- in sponsoring a course on agriculture and agro-most twice as many participants in EDI-spon- industrial projects in Ivory Coast for French-sored or EDI-supported courses overseas as in speaking African countries. EDI and the CenterWashington (562 in 20 overseas courses, com- for Development Planning of the Brazilianpared with 290 in 11 Washington courses). Planning Ministry continued with their jointThis increase in the number of courses overseas program of two annual courses for the coun-is in accordance with the recommendations tries of Latin America, with a course onapproved in 1974 by the Executive Directors agro-industrial projects and another on trans-in a review of EDI's policies. portation projects. ED] and the Arab Institute 74

for Economic Development co-sponsored a Two courses were given in Bahasa Indonesiasecond course for countries of the Middle East; by the National Planning Program in Indonesiathis year's course was on agricultural develop- -a general projects course and an agriculturalment projects. In Peru, EDI and the Escuela de projects course-entirely by Indonesian teach-Administraci6n de Negocios para Graduados ers trained in EDI courses. An industrial projectsco-sponsored a Spanish-language industrial course was co-sponsored by the Governmentprojects course for the Andean Pact countries. of Algeria. At the request of the GovernmentA general projects course was held for coun- of Egypt, the Institute of National Planning andtries of Southeast Asia at the Bank Negara Ma- EDI co-sponsored an agricultural projectslaysia Staff Training Centre in collaboration course. Special training programs financed un-with the governments of the Southeast Asian der United Nations Development ProgrammeConference of Central Bank Governors. Also in planning projects and co-sponsored by theMalaysia, EDI assisted an agro-based industrial Governments concerned were conducted in

.development projects course, co-sponsored by Sudan (a transportation course and an agro-the Research Institute for Management Science, industry course) and in Zaire (a general projectsDelft, the Netherlands, and the National In- course).stitute of Public Administration, Kuala Lumpur. Over the past 12 years, there have been pe-

Thirteen national courses were given over- riodic reviews of the Institute and its activities,seas during fiscal 1976, each for participants but in fiscal 1976, a program of evaluation offrom a single country. In Pakistan, EDI and the the effects of EDI training was established asPlanning Division of the Ministry of Finance, a routine activity. Evaluation is conducted byPlanning, and Development co-sponsored an contacting samples of EDI Fellows (former par-agricultural projects course at the Pakistan Aca- ticipants) through questionnaires, and by eval-demy for Rural Development. Two courses, uation missions carried out by those who, whileon industrial and transportation projects, were familiar with the Institute, are not staff mem-given in Romania in cooperation with the Ro- bers. Missions of this kind have interviewed amanian Management Training Center. EDI as- representative sampling of Fellows in 10 mem-sisted the International Development Center ber countries, and their subsequent reports areof Japan with teaching support for its develop- already influencing the design of EDI courses.ment economics course. The third in an annual Courses, for example, are now giving greaterseries of agricultural projects courses was con- emphasis to techniques of both project imple-ducted in Bangladesh in collaboration with the mentation and analysis of markets and demandBangladesh Institute for Development Studies. for agricultural and industrial products.

75

Other Activities

Aid Coordination regional financing institutions (the African De-velopment Bank, the Asian Development Bank,

At the request of both donor and recipient and the Inter-American Development Bank),governments, the Bank has continued to take which helped assure coordination of develop-the lead in organizing various aid coordination ment assistance activities between them andmechanisms for a number of developing coun- the Bank.tries which receive assistance from multiple Formal consultations were held during thebilateral and multilateral sources. In fiscal 1976, year with Japanese agencies (the Overseas Eco-formal meetings of seven of the aid coordinat- nomic Cooperation Fund of Japan and theing groups sponsored by the Bank were held. Export-Import Bank of Japan) regarding theirThese were the groups for Bangladesh, India, respective lending programs; with the FederalKorea, Pakistan, the Philippines, Sri Lanka, and Republic of Germany, the Commonwealth De-Thailand. The Bank also participated in two velopment Corporation, and the Developmentmeetings of the Inter-Governmental Group for Cooperation Directorate of the EEC to reviewIndonesia, for which the Government of the questions of common interest and to discussNetherlands served as chairman, and in a meet- country and project matters; and with the Abuing of a consortium for Turkey, chaired by the Dhabi Fund for Arab Economic Development,Organisation for Economic Co-operation and the Arab Fund for Economic and Social Devel-Development. opment, BADEA, the Kuwait Fund for Arab

An indication of the close cooperation Economic Development, the Islamic Develop-among the various development assistance ment Bank, and the Saudi Fund for Develop-agencies is the large number of projects which ment to determine possibilities for cooperationthe Bank and IDA helped finance jointly or in on specific projects.parallel with other bilateral or multilateralagencies. Projects were co-financed with the Inter-Agency CooperationUnited Nations Development Programme andvarious regional financing institutions, as well In 1975, the UN Administrative Committeeas with aid agencies in Abu Dhabi, Australia, on Coordination (ACC) set in motion an experi-Belgium, Canada, France, Germany, Japan, mental inter-agency planning exercise in ruralKuwait, Libya, the Netherlands, New Zealand, development. The Bank, at the invitation of theNorway, Saudi Arabia, Sweden, the United ACC, agreed to serve as lead agency in the firstKingdom, the United States, and the European stage of the exercise-an assessment of the UNEconomic Community (EEC). In addition, proj- system's activities in the field of rural develop-ects were financed, for the first time, with the ment. This assessment was carried out by annewly organized Arab Bank for Economic De- independent consultant, whose report was re-velopment in Africa (BADEA). The Bank also viewed by an inter-agency task force composedrenewed its efforts to stimulate private invest- of the United Nations and 11 organizations ofment in Bank-sponsored projects, and during the United Nations family. The Bank served asthe year, one project was co-financed by pri- chairman of the task force, and submitted thevate commercial banks. Much interest has been task force's report, adopted unanimously byexpressed by the banking community in this the participants, to the ACC. The principal rec-type of cooperation, which is expected to be- ommendation, which has been accepted by thecome more frequent in the future. ACC and which will be put before the UN

On a regional basis, the Bank concluded a Economic and Social Council, was that organi-cooperation agreement with the Venezuelan zations of the UN system should be asked toInvestment Fund, which sets out the general orient-or reorient-their rural developmentscope for future co-financing with that Fund. programs to ensure that benefits accrue pri-It also continued its active participation in the marily to the rural poor. From this recommen-country reviews sponsored by the Permanent dation a number of others followed, includingExecutive Committee of the Inter-American a proposal for an inter-agency effort at the na-Economic and Social Council. The Bank con- tional level, beginning with a small number oftinued to maintain close working relations with countries. The ACC decided to continue the 76

inter-agency task force and accepted the offer fication, preparation, or appraisal missions, andof the International Labour Office (ILO) to be two sector missions. In addition, the programlead agency for at least the next year. carried out, on its own, two project identifica-

The Consultative Group on Food Production tion or preparation missions.and Investment in Developing Countries Cooperation between the Bank and these(CGFPI) organized by the Bank, the Food and and other agencies is also carried out underAgriculture Organization of the United Nations less formal arrangements.(FAO), and the United Nations Development TheBankandWHO,which,severalyearsago,Programme (UNDP), in response to a resolu- jointly adopted guidelines for their respective

*tion of the 1974 World Food Conference, met staffs carrying out activities in the populationtwice during the year. Participants included field, reached agreement during the year onbilateral and multilateral donor governments, cooperation in the field of health. The agree-and agencies and representatives of developing ment contemplates joint missions, exchange ofcountries. The CGFPI's main functions are to information, and annual sector reviews.encourage larger external resource flows for Arrangements were instituted between thefood production, coordinate activities of United Nations Children's Fund (UNICEF) anddonors, and ensure more effective use of avail- the Bank, which were designed to increase theable resources. It serves as a forum for the potential for collaboration between the twoexchange of views on investment in food pro- institutions in project work, primarily throughduction. increasing the knowledge of each concerning

Eleven years ago, the Bank entered into its current activities of the other.first formal "cooperative program" relation- The Bank continued to distribute to otherships with organizations in the UN system. international organizations a variety of docu-There are now four such programs, with mentation-country economic reports, debtUnesco, FAO, WHO, and UNIDO."1 ) Under surveys, commodity studies, appraisal reports,these programs, governments are assisted in project evaluation reports, and other material.identifying and preparing projects suitable for An Ad Hoc Working Group on Rural PotableBank financing, and support is provided for Water Supply and Sanitation, sponsored by theBank country economic and sector studies, and Bank, UNDP, WHO, and the International De-for various kinds of Bank missions. The Bank velopment Research Centre of Canada (IDRC)meets 75% of the cost of the agreed work pro- held its third meeting. It decided upon a seriesgram in each case; the partner agency meets of operational activities to be carried out in25%. calendar 1976. WHO is to be the lead agency

For the fiscal year, the Bank's share of the for a regional workshop and for certain countrytotal cost of the four programs was $5,535,000, activities; IDRC is to take the lead for a projector about 2.4 times the fiscal 1964-75 annual in the field of information science; the Bank isaverage of $2,323,000. to take the lead in a review of experience in the

The FAO/Bank Cooperative Program helped rural water supply and sanitation field.to prepare about one-third of the agricultural In the population sector, the Bank continuedprojects approved by the Executive Directors to review planned operations with the Unitedfor Bank financing, and participated in 157 mis- Nations Fund for Population Activities (UNFPA)sions to 52 countries. The Unesco/Bank Co- and WHO; staff of the UN, UNDP, UNFPA,operative Program carried out 37 missions, Unesco, and WHO participated in Bank mis-and assisted in the identification and/or prepa- sions which developed population projects.ration of 15 education projects financed by The Bank and the Development Center of thethe Bank in 15 countries. The WHO/Bank Organisation for Economic Co-operation andCooperative Program, which is confined to the Development (OECD) initiated a joint study tofield of water supply and wastes disposal, con- identify and evaluate possible changes in atti-tinued to focus on sector studies, with partic- tudes, following the 1974 World Populationular attention to rural development problems. Conference, towards the appropriateness of ex-Six reconnaissance missions and sector studies ternal assistance for the solution of population'were carried out under the program during the problcms.year, and four countries received project prepa- Consultations were held during the year withration or other project-related assistance. The the ILO on the employment and income dis-UNIDO/Bank Cooperative Program, which be- tribution effects of projects, country man-came formally effective in January 1974, helped power requirements, and labor-intensive pro-to prepare two industrial projects financed by duction technologies.the Bank, and participated in five project identi- Following completion of a preliminary joint

study by the UNDP and the Rockefeller Foun-dation, the Bank is joining with those organiza-

() The United Nations Educational, Scientific and Cultural Or- tions in an international program of researchganization, the Food and Agriculture Organization of the and development for cotton. Cotton is a crop ofUnited Nations, the World Health Organization, and the unique importance to the developing coun-United Nations industrial Development Organization, re-spectively. Unesco and FAO are the two organizations tries; its production, processing, and manufac-whose formal ties with the Bank go back 11 years. ture now provide at least part of the livelihood 77

Co-financing"' of Bank- and IDA-assisted Projects, by Region(US$ millions. Fiscal years.)

1973 1974 1975(2) 1976(0)

Number of Amount Number of Amount Number of Amount Number of Amountprojects co-financed projects co-financed projects co-financed projects co-financed

Eastern Africa 5 $ 65.0 10 $ 67.1 12 $ 292.5 13 $ 147.7Western Africa 8 44.9 8 34.5 11 53.5 16 407.2East Asia and Pacific 7 187.0 6 103.5 4 150.1 10 392.9South Asia 5 815.7 4 94.0 3 138.8 5 65.7Europe, Middle East,

and North Africa 5 53.0 16 981.9 14 396.5 14 718.3Latin America and the

Caribbean 7 155.2 5 540.7 7 1,438.7 5 474.6

Total 37 $1,320.8 49 $1,821.7 51 $2,470.1 63 $2,206.4

As a % of lendingprogram 25 39 28 42 27 42 29 33

(') Includes co-financing from official and private sources, as well as suppliers' credits.(2) Because co-financing for some projects is not determined until well after funds are committed, the figures for fiscal 1975 and

fiscal 1976 are preliminary.

of about 150 million people. The next stage of ference on the Law of the Sea, and contributedthe undertaking will involve preparation of de- to the preparatory work for the World Watertailed proposals for a work program, as well Conference, to be held in 1977.as proposals for organizational, constitutional, International Agricultural Researchand financial arrangements which can be con-sidered by potential participating governments Despite good harvests during 1975/76, theand by financial contributors. fundamental problem posed by the threat of a

The year also saw publication of the results shortage of food in many of the developingof the International Comparison Project (ICP), countries in the longer term emphasizes thewhich compares country economic data. The importance of increasing agricultural produc-project was begun in 1968 by the United Na- tivity. A key factor is research. The Bank con-tions Statistical Office, the University of Penn- tinues to serve as chairman and, with the Foodsylvania, and the Bank. ICP, now in its final and Agriculture Organization of the Unitedphase, is expected to provide a major contribu- Nations (FAO) and the United Nations Devel-tion to the analysis of comparative incomes. opment Programme (UNDP), as co-sponsor of

The Bank was involved in the preparation of, the Consultative Group on International Agri-and participated in, several major conferences cultural Research (CGIAR). The programs andduring the year. It has had permanent observer activities supported by the CGIAR continue tostatus in three of the commissions of the Con- expand. Iran and Italy joined the Group, bring-ference for International Economic Coopera- ing to 26 the number of members contributingtion (CIEC)-those on development, finance, funds in calendar 1976 to the 12 internationaland raw materials. The Bank's staff took part research centers and programs which comprisein the discussions and provided considerable the CGIAR system. Contributions in calendardocumentation on economic prospects of de- year 1976 are expected to total about $65 mil-veloping countries, international capital flows, lion, compared with $47 million in 1975.commodity price stabilization, energy, and Included in this total is an amount of up toproblems of development financing. $6.8 million in grants contributed by the World

The Bank was represented at the Fourth UN Bank from IDA resources, and made in twoConference on Trade and Development tranches-one in March and another planned(UNCTAD), held in Nairobi. A senior Bank staff for September. The March tranche totaledmember was seconded to the UNCTAD secre- 54,735,000 and went to:tariat to assist in the preparation for the Con- -the International Center of Tropical Agri-ference. The Bank participated also in the UN culture (CIAT), based in Colombia:Conference on Human Settlements (Habitat) in $250,000;Vancouver. For Habitat, the Bank supplied -the International Maize and Wheat Im-documentation and three films: on traffic con- provement Center (CIMMYT), based instraints, urban construction, and "sites and Mexico: $110,000;services" packages for housing development. -the International Potato Center (CIP),It contributed research material and seconded based in Peru: $400,000;staff for preparatory work on the ILO-spon- -the International Institute of Tropical Agri-sored World Employment Conference, and par- culture (IITA), based in Nigeria: $1,000,000;ticipated in the Conference. The Bank was -the International Rice Research Instituterepresented at the Third United Nations Con- (IRRI), based in the Philippines: $1,000,000; 78

-the International Livestock Center for ization in support of Bank efforts to improveAfrica (ILCA), based in Ethiopia: $600,000; the living conditions of the poor.

-the International Laboratory for Research Projects in the research program are nor-on Animal Diseases (ILRAD), based in mally carried out with a combination of in-Kenya: $1,200,000; ternal manpower and funds approved by the

-the Current Agricultural Research Infor- Research Committee for consultants, travel,mation System (CARIS), administered by and other external expenditures. Over 40 ofthe FAO: $100,000; and these projects have now been completed andthe FAQ: $100,000; andanother 16 are nearing completion, while 15

-the International Center for Agricultural projects were added in fiscal 1976:Research in the Dry Areas (ICARDA),$75,000. Projects completed 42

Projects nearing completion 16ICARDA is in the process of being estab- Projects continued from fiscal 1975 47

lished to serve the needs of countries of low Projects started in fiscal 1976 15precipitation (which occurs mainly in the win- -ter) in the area from Morocco to Afghanistan. 120With its establishment, the CGIAR network of Policies to reduce income disparities andinternational agricultural research and training promote employment must make the best usenow embraces the major food crops and eco- of available information while aiming to im-logical zones of the developing world. In ad- prove the data base and clarify theoretical rela-dition to those already named, the members tions. For this reason, the earliest project onof CGIAR are supporting the International income distribution, completed this year, pre-Crops Research Institute for the Semi-Arid sented the available data, with measures of in-Tropics (ICRISAT) in India, the field trials sys- equality, for 81 countries. More recent studiestem of the West African Rice Development use special data sets to determine the incomeAssociation (WARDA), with its secretariat in and consumption profiles of poverty groups inMonrovia, Liberia, and the International Board Asia and Latin America. As part of this effort,for Plant Genetic Resources, whose secretariat income differences among population groupsis in Rome. and regions in Thailand are being identified to

The Group has 35 members: 23 countries improve the basis of the next development(including those named to represent the five plan. A project concerned with the distributiveFAO regional conferences of developing coun- impact of public expenditures is exploring howtries), eight international development organi- education, health, and other services are dis-zations, a national (Canadian) research center tributed among households of different in-for international development, and three pri- come levels.vate foundations. Findings from these and other projects sug-

gest that increases in labor productivity canEconomic Research and Studies improve the distribution of income. To help

learn more about how urban labor marketsThe Executive Directors conducted the third operate, a group of closely related projects has

annual review of the Bank's research activities. as its aim the investigation of characteristics ofThey agreed that procedures established during those employed in the modern and "informal"the year for evaluating completed research sectors. First stage results from one projectshould be part of a continuing effort to spread have proved useful in studies to carry out theresults more widely; to foster collaboration urban poverty strategy outlined at the 1975with research institutions in developing and Annual Meetings. Country economic modelsdeveloped countries; to coordinate Bank re- that more fully incorporate employment andsearch with that of other agencies; and to incorme distribution features are being devel-generalize results into practical benefits for oped in the "prototype" project, supported byBank operations and policy. research on social accounting frameworks, in

Still less than five years old, Bank research, which data on poverty and inequality will bea.s now organized, is maturing into a program more rigorously integrated into national in-of mutually supportive studies in all major de- come accounts.velopment fields. Some of these are in specific In the current phase of a study of the tech-sectors such as education, health, public utili- nical and economic aspects of labor/equipmentties, and industry, and include major new re- substitution in road and other civil works con-search on family planning, export incentives, struction, labor productivity is measured fromand industrial growth; others, for example, a field experiments at road and canal sites. Tech-comparison of national aggregates based on nical assistance provided under the project ispurchasing power, are more concerned with intended to improve the recruitment andthe improvement of tools for development supervision of the labor and the training ofstrategy and planning. At the same time, local staff. Since low labor productivity is ag-importance continues to be placed on em- gravated by disease and poor nutrition, a num-ployment and income distribution, rural devel- ber of related studies are evaluating the impactopment, population and nutrition, and urban- of health and nutrition on productivity. 79

Several research projects are intended to equivalent to Vice President, and selected thehelp improve the design of rural development first incumbent to this office in fiscal 1976. Theprojects. Extensive surveys of an irrigation proj- Director-General is responsible, with the as-ect in Malaysia, carried out in conjunction with sistance of the Operations Evaluation Depart-the Food and Agriculture Organization of the ment, for assessing and reporting to the Execu-United Nations (FAO), are yielding results of tive Directors on the efficacy of the Bank'sthe effects of changes in farmer behavior on operations evaluation system and conductingregional income and employment. An earlier independent reviews, on a selective basis, ofproject in northeast Brazil has tabulated an ex- Bank operations and activities. The reviewstensive data set that has proved valuable for seek to determine whether objectives are beingseveral Bank projects in areas where research realized and how operations might be madeis under way. In a more recent study, informa- more effective, efficient, and responsive to thetion is being compiled on the management and needs and concerns of member governments.organization of irrigation projects. Other con- The main components of the Bank's operationstinuing research examines ways to improve the evaluation system, and the standards and pro-productivity and incomes of small farmers cedures for the conduct of operations evalua-and methods of evaluating foodgrain storage tion work, are described in a statement ap-policies. proved by the Executive Directors in April

Understanding urban growth and the nature 1976. That statement was published by theof poverty in cities has been the focus of recent Bank in pamphlet form in June 1976.research on urbanization. Standards of public Most of the Bank's operations evaluationutility service and of "sites and services" hous- activities are of a decentralized and self-ing projects are being studied to develop more evaluative nature. The main component of theappropriate criteria for project design. More system relates to the Bank's project work. Inspecific studies of urban public finance, land, addition to regular review and reporting onand transportation are also being undertaken. project implementation by the Bank's projectIn addition, an evaluation of three Bank hous- staff, reports which briefly assess achievementsing projects, supported by the Bank and the against the original objectives of each projectInternational Development Research Centre and the value and effect of the Bank's partici-(Canada), seeks to determine how families, pation in that project are normally producedover time, benefit from opportunities to im- by the Bank's operating departments withinprove their living conditions. six months of the completion of disbursements

A significant amount of the research com- on the project. Monitoring and evaluation are,pleted to date has been of value in Bank policy increasingly, being built into Bank projects toor issues papers. Some, particularly the policy make these processes more effective and morestudies on education and rural developmenti useful to borrowers. The Operations Evalua-have drawn on results from several research tion Department reviews each of these reports,projects. thoroughly in selected cases and briefly in the

others, solicits borrowers' comments on them,To facilitate wider dissemination, the results and then transmits them, along with its own

of Bank research are often published as "Staff independent assessment of each particularWorking Papers," and sometimes as mono- operational experience, to the Bank's Execu-graphs or as books. Journal articles by Bank tive Directors. These reports on actual experi-staff are circulated internally as reprints. A ence with each project provide the best-complete list of publications is available in the founded, broad indication of the results ofWorld Bank Catalog, issued annually. More Bank policies and operations, and also valuabledetailed information on the current research case material for deeper studies of specialprogram may be found in the Abstracts of Cur- problems. About 80 to 90 Bank-assisted andrent Studies, which is also published annually. IDA-assisted projects are currently being com-

pleted each year. The Operations EvaluationOperations Evaluation Department reviews the findings of these re-

ports, highlights overall patterns, and drawsA separate Operations Evaluation unit was attention to particular issues that recur with

first established in the Bank in late 1970 to sufficient frequency to warrant deeper scrutiny.generate independent reports to the share- The deeper studies undertaken by the Opera-holders and the management on the actual re- tions Evaluation Department itself in recentsults of operations, in terms of contributions years have generally been of two types. Oneto development, and to identify practical ways type has focused on a particular sector orin which policies and procedures can be im- aspect of development, the Bank's assistanceproved in the light of experience. Since then, for it in a number of countries, and any majorthe evolution of this function and its place in questions of development and assistance pol-the organization structure have been reviewed. icy which may arise. The second type has con-After the last such review, the Executive Direc- centrated on a particular procedure or set oftors decided to establish a new post of Direc- procedures of the Bank, analyzed the broadtor-General, Operations Evaluation, of rank pattern of their application, and scrutinized a 80

few selected cases which have given rise to Directors, and Bank management; (c) reviewdifficulties in project execution and borrower and determine the extent to which assets areresponse. Of the first type is a report published accounted for and safeguarded from losses ofduring fiscal 1976 on the "demonstration" ef- all kinds, including, where applicable, the ef-fect of Bank projects; of the second type is a fective utilization of these resources; (d) re-report on project preparation problems. Studies view and determine the reliability and validityof these types are generally aimed at identi- of significant accounting, financial, and otherfying possible specific ways of improving data used by management; and (e) recommendBank performance. The Operations Evaluation improvements in order to strengthen internalDepartment follows up on its findings with the control, improve administrative efficiency, andgesponsible operating departments and the eliminate any uneconomical use of resources.central staff departments in charge of formu- In order to maintain its independence andlating relevant policy in the Bank. objectivity, the Department has no direct re-

The Department is also beginning to review sponsibility for developing and installingtvith individual member countries how best changes in systems, procedures, and controlsthey might establish an evaluation function in which it normally would be expected to re-their countries to review the effectiveness of view and appraise. Where relevant, the Depart-their governments' principal sector develop- ment coordinates its work with the Bank'sment programs or, at a minimum, of the ex- external auditors in order to avoid duplicationternally supported portions of these programs, of effort and to provide maximum coveragewhere this function does not already exist. of the Bank's activities. The Department's

work programs, reports, and working papersInternal Auditing are made available to the external auditors to

assist them in planning and conducting theirThe Internal Auditing Department, which examinations of the annual financial statements

was made responsible to the Vice President, of the Bank.Finance, effective January 1976, similarly helps The results of all examinations undertaken bythe Bank give assurance to its creditors and the Internal Auditing Department, includingstockholders that the resources supplied by opinions or conclusions derived and recom-them are adequately protected and are achiev- mendations formulated, are reported to theing the desired results. The emphasis of internal relevant department Directors; the Vice Presi-auditing, however, is on the maintenance of dent to whom the department Director reports;an effective system of internal controls and on the Vice President, Finance; the external audi-the adequacy of related systems and proce- tors; and to others as considered appropriate.dures used in the conduct and management of The Internal Auditing Department undertakesBank operations. The Department's overall ob- periodic follow-ups on its findings and recom-jective is to assist all levels of management in mendations to determine that appropriate ac-the effective discharge of their responsibilities tion has been taken by management on theby furnishing them with periodic, independent conditions reported as needing attention.audits and appraisals of activities within theirrespective areas of responsibility. Based on theresults of the examination of these activities, International Centre for Settlementthe Department presents its recommendations, of Investment Disputesas appropriate, on possible specific means ofimproving the efficiency and economy of op- By June 30, 1976, 67 States had ratified theerations and the effective use of resources; on Convention on the Settlement of Investmentstrengthening management controls; and on Disputes between States and Nationals ofother areas meriting further attention. This is Other States, and are thus members of theachieved by a program of audit assignments International Centre for Settlement of Invest-covering a wide range of financial, accounting, ment Disputes (ICSID). Five additional govern-administrative, and other activities. In carrying ments had signed but not yet ratified the Con-out these assignments, the Director and, as ap- vention. The Centre's own Annual Report pro-propriate, members of his staff have unrestrict- vides details of its membership and affairs.ed access to all Bank records, documents, andpersonnel relevant to the subject under review. Bank and IDA Membership

The principal responsibilities of the Depart-ment are to: (a) review and determine the Grenada and Papua New Guinea joined thesoundness, adequacy, and application of sys- Bank and IDA on August 27 and October 9,tems, procedures, and related internal con- 1975, respectively, bringing total membershiptrols, and to promote effective control at in the Bank to 127 and in IDA to 116.reasonable cost; (b) review and determine the At the end of the year, action was pendingextent of compliance with various governing on membership in the Bank and IDA foragreements or instruments and related deci- Comoro Islands, Guinea-Bissau, and Maldives.sions, regulations, policies, plans, and proce- Action was pending on membership only indures of the Board of Governors, Executive the Bank of Surinam. 81

Borrowings and Finance

Income and Expenditures: Bank million in the year, and served to offset thelower level of yields.

Net income of the Bank was $220 million in Income on loans increased $131 million tofiscal 1976, a decline of $55 million, or 20%, $897 million. The average return on outstand-from net income reported in the preceding ing loans in the year was 7.1% compared withyear. 6.4% in fiscal 1975. Other income, at $8 mil-

As a result of net translation adjustments lion, was down $1 million.arising from currency revaluations and devalua- Expenditures of the Bank totaled $1,110 mil-tions, the Bank's General Reserve was debited lion, an increase of $228 million, or 26%. Vir-in an amount of $151 million in fiscal 1976. This tually all the increase was accounted for by aresulted from changes in the valuation of vari- rise of $214 million in interest and issuanceous currencies in relation to the United States costs on the Bank's borrowings to a total ofdollar, in which the Bank's accounts are ex- $987 million. The increase in fixed charges waspressed. During the fiscal year, most other cur- due largely to the heavy marketing program ofrencies, and especially the pound sterling, the the Bank which, in the last two fiscal years,Italian lira, and the French franc, declined in had added $4,997 million to outstandingvalue in respect to the US dollar. borrowings.

The Bank does not speculate in the cur- Administrative expenses at $122 million forrencies of its member countries. Under its the year were up $12 million, after deductingpresent policies, adjustments arising from the $62.8 million received as a management feetranslation of currencies to the US dollar equiv- charged to the International Developmentalent, would not now, or in the future, result in Association and $1.5 million paid to the Bankrealized gains or losses such as would result by the International Finance Corporation forfrom the conversion of currencies into US dol- service and support. The rise in administrativelars. Accordingly, translation adjustments, with expenses in fiscal 1976 was at a substantiallythe exception of those relating to capital sub- lower rate than in fiscal 1975, as a result of thescriptions, are charged or credited to the diminution in the rate of inflation and a stabi-General Reserve rather than to income. The lizing of numbers of the Bank's staff.Financial Accounting Standards Board in the Of fiscal 1975 net income, $165 million wasUnited States requires that foreign currency allocated to the Bank's Supplemental Reservetranslation adjustments be included in the de- against Losses on Loans and from Currencytermination of net income for the period in Devaluations, which has since been designatedwhich they occur; in view of the character of as the Bank's "General Reserve." In Septemberthe Bank as an international institution and its 1975. the Bank's Board of Governors approvedrelated policies, the Bank does not deem this a transfer of $110 million from net income forStatement to be applicable to it. On June 30, fiscal 1975 as a grant to IDA.1976, the General Reserve of the Bankamounted to $1,624 million. Other Financial Operations: Bank

Gross revenues, on the other hand, were up$173 million to a record $1,330 million. Since Loans held by the Bank on June 30, 1976fiscal 1968, gross revenues have risen nearly aggregated $26,091 million, including loans notfourfold, as earning assets have increased as a yet effective and $1,047 million of exchangeresult of the Bank's greatly expanded lending adjustments arising principally from changes inand investment programs. currency valuations over the last five years.

Income from the Bank's investments in- Effective loans held by the Bank amounted tocreased $42 million to $425 million for the $22,239 million after excluding $502 million ofperiod. Average realized return on investment, effective and outstanding loans to the Inter-including net capital gains, was 7.3% compared national Finance Corporation of which $322with 8.4% in fiscal 1975. The decline reflected million had been disbursed.a generally lower level of short-term yields in Loan disbursements were at a record $2,5351976, as the rate of inflation in the United million, 1) up $439 million over disbursementsStates and other countries abated. Average in-vestment holdings of the Bank increased $1,276 (') Including $66 million in disbursements on loans to IFC. 82

in fiscal 1975. The increase brought aggregate equivalent of intermediate- and long-termdisbursements since the start of loan opera- bonds denominated in Swiss francs andtions to nearly $20,000 million. Disbursements Deutsche mark by the Saudi Arabian Monetaryfor the five fiscal years ended June 30, 1976 Agency and the Central Bank of Libya. A furtherwere more than double the volume for the $253 million of two-year US dollar bonds werefive preceding fiscal years, and the rate of in- purchased by governments or official agenciescrease continues to accelerate. The Bank's in 14 petroleum-exporting countries. Otherexpanded loan program starting in fiscal 1969, purchases of World Bank issues by govern-inflation, and the development of more effec- ments and central banks totaled $906 milliontive techniques in administering loans and proj- equivalent, including: Germany-DM550 mil-ects have all contributed to the rising level of lion of four and one-half- and five-year notesdisbursements. by the Deutsche Bundesbank to refinance an

During the year, the Bank's borrowers repaid equal amount of maturing notes; Japan-$677 million: $609 million to the Bank and $68 Y56,700 million of six and one-half- and seven-million to investors who had purchased por- year serial obligations by The Bank of Japan totions of loans. Cumulative repayments on the refinance an equal amount of maturing serialBank's loans amounted to $7,241 million by obligations; Yugoslavia-$50 million of US dol-June 30, 1976: $4,949 million repaid to the lar notes due 1978/82; and $447 million ofBank and $2,292 million to purchasers of loans. two-year US dollar bonds by governments and

Sales of participations in new loans and of official agencies in 65 countries and by regionalmaturities from the Bank's loan portfolio and international organizations.amounted to $42 million in fiscal 1976, includ- Of the $2,331 million equivalent of issuesing an aid participation by Norway, compared sold by the Bank in the investments marketswith $15 million the previous year. After can- in fiscal 1976, $1,635 million was distributed bycellations and adjustments for changes in means of public offerings in Germany, thevalues of non-dollar currencies, the cumulative Netherlands, Switzerland, and the Unitedtotal of loans sales was $2,563 million at the States; and the remainder by private place-end of the year. ments in those same markets and in Kuwait.

The Bank's liquidity position rose $1,226 The US investment market was the largestmillion in the year to a total of $6,395 million source of borrowed funds to the Bank in theon June 30, 1976. year. Altogether, the Bank sold a record $1,275

million of its obligations in the US, equal toThe Bank's Borrowings-Fiscal 1976 more than one-third of total obligations sold

in the period.The volume of borrowings by the Bank in Two public offerings accounted for $1,250

fiscal 1976 reached a new record level for the million of these sales: (a) $500 million of notesthird consecutive year. Forty-one issues, total- divided into $300 million of 8.30% five-yearing $3,811 million, were sold by the Bank, an notes and $200 million of 8.60% 10-year notes;increase of $301 million over fiscal 1975. and (b) the largest public offering undertaken

Gross borrowings by the Bank in the five fis- by the Bank-$750 million of obligations di-cal years 1972-76 aggregated $12,641 million, vided into three $250 million tranches consist-equal to more than 2.6 times the volume of ing of 8.35% five-year notes, 8.85% 10-yearsuch borrowings in the previous five-year pe- notes, and 9.35% 25-year bonds. The latterriod. This was a further reflection of the sharp tranche was the first long-term issue to begrowth in the Bank's lending operations and of offered by the Bank in the US market in morethe necessity to finance a large proportion of it than four years.through borrowings in the capital markets. There were two private placements, totaling

The sources of borrowed funds to the Bank $25 million, in the US. One, amounting to $20changed substantially in the year. In the pre- million, was placed as an 8% loan with theceding three years, governments and central New York branch of a German bank; the other,banks were the major sources, supplying 59% amounting to $5 million, also an 8% loan,of total borrowed funds in fiscal 1973, 80% in was placed with the New York branch of a1974, and 76% in 1975. The trend reversed Japanese bank.sharply in 1976. Governments and central banks In the German market, the Bank sold issuessupplied $1,351 million, or 35% of borrowed aggregating DM1,150 million (about $450 mil-funds, while the investment markets supplied lion). Included were three public offerings:$2,331 million, or 61% of the total. Moreover, DM250 million of 8% seven-year bonds,government and central bank purchases of DM250 million of 8% eight-year bonds, andWorld Bank issues were $1,303 million lower DM300 million of 7.5% seven-year bonds. Bythan in fiscal 1975. private placement, the Bank borrowed DM150

Official purchases of World Bank obligations million at 6.10% and DM200 million at 5.75%.in the petroleum-exporting countries declined Both placements were made with a consortiumsharply to $445 million equivalent from $1,984 of members of the German Savings Banks Asso-million reported in fiscal 1975. Included in ciation represented by the Deutsche Girozen-such purchases in fiscal 1976 were $192 million trale-Deutsche Kommunalbank. 83

World Bank Borrowings-Fiscal Year 1976(In millions)

Currency of US dollar(')Issue issue equivalents

Public OfferingsGermany,

Federal Republic of 8% seven-year bonds, due 1982 DM250.0 96.18% eight-year bonds, due 1984 DM250.0 95.87.50% seven-year bonds, due 1983 DM300.0 118.2

Netherlands 8% 10-year bonds, due 1982/86 f.100.0 37.1Switzerland 7.75% 15-year bonds, due 1990 SvvF100.0 38.1United States 8.30% five-year notes, due 1980 $300.0 300.0

8.60% 10-year notes, due 1985 $200.0 200.08.35% five-year notes, due 1980 $250.0 250.08.85% 10-year notes, due 1985 $250.0 250.09.35% 25-year bonds, due 2000 $250.0 250.0

Total Public Offerings 1,635.3

PlacementsWith Central Banks and Governments

Germany,Federal Republic of 8% note, due 1980 DM148.2 61.6

8% note, due 1980 DM151.8 63.17.75% note, due 1981 DM250.0 96.1

Japan 8.64% serial obligations, due 1981/82 Y12,000.0 40.58.50% serial obligations, due 1981/82 Vi12,000.0 40.58.50% serial obligations, due 1981/82 V2,000.0 6.88.25% serial obligations, due 1981/82 Y2,300.0 7.68.25% serial obligations, due 1981/82 VI 2,000.0 39.38.25% serial obligations, due 1982/83 V12,000.0 39.38.25% serial obligations, due 1982/83 Y2,000.0 6.68.25% serial obligations, due 1982/83 V2,400.0 8.0

Libyan Arab Republic 7.50% five-year bonds, due 1980 SwF100.0 38.1Saudi Arabia 7.75% bonds, due 1982/84 SwF300.0 115.1

8.25% bonds, due 1982/86 DM100.0 38.4Yugoslavia 8.50% notes, due 1978/82 $50.0 50.0International'2' 8.40% two-year bonds, due 1977 $350.0 350.0

7% two-year bonds, due 1978 $350.0 350.0Total Placements with Central Bank(s and Governments 1,351.0

OtherGermany,

Federal Republic of 6.10% loan, due 1976 DM150.0 57.85.75% loan, due 1977 DM200.0 76.9

Kuwait 8% 10-year notes, due 1982/86 DM400.0 155.3Netherlands 8% seven-vear notes, due 1983 f.100.0 37.2

8.25% 10-year loan, due 1982/86 f.50.0 18.78.25% 10-year loan, due 1982/86 f.150.0 55.68.20% 10-year loan, due 1982.86 f.50.0 18.6

Switzerland 7.75% six-year notes, due 1981 SwF100.0 37.97.50% five-year notes, due 1980 SwF200.0 75.27% notes, due 1982/83 SwF250.0 97.87% notes, due 1982/83 SwF100.0 39.4

United States 8% four-year loan, due 1979 $20.0 20.08% four-year loan, due 1979 $5.0 5.0

Total of Other Placements 695.4Add: Interest Subsidy Fund 8.50% loan, due 1977.2001 129.5

Total Borrowings FY 1976 3,811.2

(1) Based on official rates at time of borrowing.(2) These two-year bond issues were placed with central banks, government agencies, and with international organizations.

84

leenbank G.A.; a f.150 million 8.25% loan due1982-86 with Algemene Bank Nederland N.V.,Amsterdam-Rotterdam Bank N.V., and Bank

World Bank: Gross Borrowings, 1964-76 Mees & Hope NV; and a f.50 million 8.20%loan due 1982-86 with Pierson, Heldring &

( USS ne ons r sea years )Pierson N.V.

.. E ...... A record amount of issues was also sold in.- . - ' 3,843 I Switzerland in the fiscal year. Altogether five

issues, aggregating SwF750 million ($288 mil-3,510 3500 lion), were sold, including a public offering of

SwF100 million 7.75% 15-year bonds, and twoprivate placements: SwF200 million 7.50% five-year notes with Union Bank, Swiss Credit Bank,

3.00 . - .and Swiss Bank Corporation; and SwF250 mil-lion 7% notes, due 1982/83, with Swiss CreditBank, Swiss Bank Corporation, and Union Bank.

A further $129 million was borrowed by the

..2.500 Bank from the Interest Subsidy Fund, providedby contributions of various members to financethe differential between the Bank's standardlending rate and a lower rate charged certain

2,000 borrowers on so-called "Third Window" loans..... ;953 The borrowing consisted of an 8.50% US dollar

loan, due 1977-2001, from the Interest SubsidyFund to the World Bank.

- 500 Sales of Bank obligations in the period in-1,SS9 cluded $2,906 million equivalent of issues sold

to raise new funds and $905 million equivalentof refunding issues. In fiscal 1975, issues sold

1 000 to raise new funds amounted to $2,671 millionand refundings to $839 million.

Outstanding obligations were further in-creased by the delivery of $256 million equiva-

soo lent of issues sold in previous years on a delayeddelivery basis.

Debt maturities in fiscal 1976 aggregated$1,214 million equivalent, with the bulk of

964-68 1969-73 1974 1975 <976 them being central bank bond issues, notes.Arnua Averages held by the Deutsche Bundesbank, serial obli-

gations held by The Bank of Japan, and bondsheld by the Central Bank of Libya. Eight marketissues, however, reached final maturity in theperiod in an amount of about $315 millionequivalent. Included were $225 million inbonds and notes previously sold on the USinvestment market; DM108 million of bonds

By arrangement with the Kuwait Investment and notes previously placed with GirozentralenCompany (SAK) and the Dresdner Bank A/G., in Germany; f.63 million of bonds and notesthe World Bank placed a DM400 million ($155 previously offered in the Netherlands market;million) issue in Kuwait. It consisted of 8% and SwF65 million of bonds previously offered10-year notes. This was the first sale of the in the Swiss market.Bank's obligations in the Kuwaiti market since A further $64 million equivalent of debt was'fiscal 1974. All previous marketings in that retired in the year by means of sinking fundcountry were denominated in Kuwaiti dinars. and purchase fund operations.

After a lapse of three years, the Bank re- The total of outstanding borrowings of theturned to the Netherlands and sold a record Bank increased $2,360 million in the year toamount of its obligations in that market. In all, $14,647 million as of June 30, 1976. On thatfive issues were sold in the Netherlands in fiscal date, estimates indicated that 25% of the Bank's1976 and they aggregated f.450 million ($167 obligations were held by investors in the Unitedmillion). Included was a public offering of f.100 States, 21% in Germany, 10% in Japan, 8%million of 8% 10-year bonds, and four private in Saudi Arabia, and 7% in Switzerland. Theplacements: f.100 million of 8% seven-year remaining 29% of outstanding borrowings werenotes with a group headed by Algemene Bank held by investment institutions, including cen-Nederland N.V.; a f.50 million 8.25% loan due tral banks and government agencies in more1982-86 with Cooperatieve Raiffeisen-Boeren- than 80 countries. 85

Borrowing Costs: Bank Finances: IDA

The Bank's borrowing costs in the fiscal year, Credits held by IDA on June 30, 1976 aggre-weighted by amount and maturity, averaged gated $10,424 million, including credits not yet8.48% compared with 8.21% in the preceding effective and exchange adjustments of $485year. The average cost of all funds to the Bank, million. Effective credits on the above-men-including paid-in capital and accumulated earn- tioned date were $9,726 million, includingings, which are cost-free, was about 5.6% com- undisbursed portions of credits amounting topared with 5.2% at the end of fiscal year 1975. $3,567 million. Credits approved, but not yet

effective, at the end of fiscal 1976 were $698million.

Increase In Capital Disbursements in fiscal 1976 were also at a

The Bank's subscribed capital'2 ) was in- new peak, reaching $1,252 million, a gain ofcreased by $32.9 million in the fiscal year. $226 million. Aggregate disbursements as ofIncluded were the original subscriptions of June 30, 1976 were $6,205 million, includingGrenada ($1.7 million) and Papua New Guinea the exchange adjustments noted above.($17.1 million), which became members dur- The resources available to IDA decreaseding the vear. The remaining $14.1 million rep- $86.1 million in the year after taking into con-resented increases in the capital subscriptions sideration a net decrease of $213.5 million inof three member countries: the Syrian Arab Re- the value of resources made available by thepublic, by $2.1 million, to $42.1 million; Pan- members of the Association under the Fourthama, bv S0.5 million, to $18.1 million; and Replenishment. The World Bank granted $110Zambia, by $11.5 million, to $64.8 million. million to IDA from its fiscal 1975 net income.

The increases were received by the Bank The grant was approved by the Board of Gov-under a resolution adopted by the Board of ernors in September 1975. From this grant, IDAGovernors in December 1970, which enables is authorized to make grants of up to $7.8 mil-the Bank to accept special increases in sub- lion for agricultural research and for control ofscriptions to its capital stock by 75 member onchocerciasis.countries. Sixty-five had been accepted by the Norway made $5.4 million available to IDAend of fiscal 1976 for a total of S1,901.6 mil- in riscal 1976 by purchasing, on a grant basis,lion. This included increases by 62 members a participation in a credit to Sudan. The par-in the preceding five years. Total subscriptions ticipation was taken under the terms of the aidto the Bank'scapital on June 30,1976 amounted cooperation agreement between the Kingdomto $25,581.8 million. Three members have ad- of Norway and the Bank and IDA. To date, thevised the Bank that they will not subscribe to total of participations by Norway under thethe additional shares authorized for them. agreement amounts to $17.6 million.Other members eligible for special increases Other resources that became available toin subscriptions are expected to take up addi- IDA amounted to S17.9 million, derived fromtional stock. Authorized capital of the Bank releases by Part II members and cancellationremained unchanged during the year at $27,000 of and repayments on credits, after taking intomillion. account a net loss of $5.5 million in resources

provided by operations.

Selective Capital Increase Foreign and International Bond Markets

Under the proposed resolution authorizing -Calendar 1975special increases to capital stock,2 ) the 125 mem-bers would have the right to subscribe to an Volume of both foreign and iternational

addit4shares at a price of $100,000 issues -) were up sharply in 1975, as borrowingsadditional 69,134 saeatapieo 100 on the foreign and international bond markets Aa share. If all special increases are taken up, ose torecord $2t03niion; this mountthe Bank's subscribed capital would stand at rose to a record $22,083 million; this amount$32,495 million, of which some $3,250 million represented an increase of $9,782 million, orwould be paid in and about $29,245 million 80%, overborrowings i the previous year.

wudrtmeet obli- A considerable shift in the sources of bor-wvould remain subject to call only to metol- rowed funds occurred during the year. Volumegations of the Bank to investors in its securities. of fo nisues i uron marketslwas

The Board of Governors has been requested of foreign Issues in the European markets wasto register its votes within six months. Action more than 200% above the 1974 level, but for-by individual members in subscribing to addi- eign bonds issued in North American and othertional capital may be taken up to October 1, markets were 16% higher.1980, but the subscription period may be ex-tended by the Bank's Executive Directors. Vot- () Figures in this section are expressed in Iterms of United

ing on the resolutions was in progress at the States dollars of the weight and fineness in effect on July 1,

end of the fiscal year. (A detailed discussion of 1944.

the proposed capital increase appears in the i') The terms "foreign" and "international" in this contextfirst chapter, "Summary and Background of the refer to issues sold outside the country of the borrower:

foreign if sold in one national market, international if inYear's Activities," pages 5 and 6.) more than one. 86

Borrowing in International Markets(US$ millions. Calendar years.)

1974 1975 1976(l) (Pt

Foreign Foreign Foreignand inter- Euro- and inter- Euro- and inter- Euro-national currency national currency national currencybonds credits Total bonds credits Total bonds credits Total

Industrializedcountries 5,850 17,243 23,093 15,496 5,090 20,586 12,269 3,550 15,819

Developingcountries 931 9,741 10,672 1,021 12,429 13,450 627 6,594 7,221

Oil exporters (62) (77511 (837) (68) (3,144) (3,212) (129) (1,688) (1,817)Others"2 ) (869) (8,966) (9,835) (953) (9,285) (10,238) (498) (4,906) (5,404)

§ocialist countries 40 1,117 1,157 99 2,692 2,791 72 1,798 1,870

Internationalorganizations 5,480 14 5,494 5,467 65 5,532 4,585 352 4,937

Developmentinstitutions (3,673) (14) (3,687) (3,648) (65) (3,713) (2,666) (52) (2,718)

Others (1,807) (-) (1,807) (1,819) (-) (1,819) (1,919) (300) (2,219)

Unallocated - 417 417 - 299 299 291 560 851

Total 12,301 28,532 40,833 22,083 20,575 42,658 17,844 12,854 30,698

(1) First six months only.(2) Excludes Hungary and Poland.(F) Preliminary.

The petroleum-exporting countries supplied and the European Investment Bank, with $757a total of about $1,081 million during the year. million in issues, accounted for most of theIncluded were purchases of $186 million of for- borrowing by these institutions.eign issues and $895 million of international Borrowings for development in 1975 aggre-issues, of which $188 million consisted of pur- gated $4,768 million, equal to 22% of totalchases of World Bank two-year US dollar bonds. transactions, and a rise of $124 million over the

Eight public offerings in the international previous year. International development insti-bond market were denominated in Kuwaiti tutions borrowed $3,648 million, down $25dinars. These issues were offered by the Alge- million from 1974. World Bank borrowings ofrian National Bank, two Finnish public enter- $2,947 million were $566 million lower than inprises, the Republic of Iceland, PEMEX of 1974. Offsetting the decline in World BankMexico, two public enterprises in Spain, and issues were borrowings by the Asian Develop-Sudan Airways. They aggregated KD47.5 mil- ment Bank, of $303 million, and by the Inter-lion, equal to $165 million, and were listed on American Development Bank, of $365 million,the Luxembourg Stock Exchange. These issues for a combined increase of $518 million overare of particular interest in that they indicate 1974 borrowings. The Central American Bankincreasing acceptance of the Kuwaiti dinar as for Economic Integration borrowed $10 mil-an international currency. lion, the samo amount as in 1974, and the

Borrowings by issuers in the industrialized Andean Development Corporation made itscountries in the foreign and international mar- first placement in these markets in an amountkets in 1975 were $15,496 million, equal to of $23 million.S0% of total transactions during the year andan increase of $9,646 million, or 165%, over Foreign Bondsvolume reported in 1974. Borrowings by issuers Sales of foreign bonds in all markets in 1975in the industrialized countries of Europe rose increased $4,127 million to $11,913 million.$4,506 million to $7,286 million; issuers in other Sales on European markets rose $3,092 millionindustrialized countries borrowed $8,210 mil- to $4498 million and on North American andlion, a gain of $5,140 million over borrowings other markets, they increased $1,034 millionthe year before. other m illionl

A total of $1,819 million was borrowed by to $7,415 milion.the multilateral European institutions, virtually Foreign Bonds: Europethe same amount as they borrowed the previ-ous year. The European Coal and Steel Com- Switzerland was, by far, the largest.and mostmunity, with issues amounting to $831 million, active market for foreign bonds issued in Eu- 87

rope. Foreign issues in the Swiss market in 1975 placements. Provincial and local governmentstotaled $3,372 million and accounted for nearly and public enterprises again accounted for mostthree-fourths of all foreign bonds sold in Eu- of the Canadian borrowings, with issues aggre-rope during the year. Moreover, volume on the gating $2,554 million. The remaining $551Swiss market was $2,386 million higher than in million was borrowed by Canadian corpora-1974. Some $2,362 million of bonds were pri- tions, mostly through private placements.vately placed and $1,010 million were sold by Borrowings by international development in-public offering. stitutions in the US totaled $1,575 million, or

More than 90 issuers representing 19 coun- 23% of total foreign bonds sold in that markettries, four multilateral institutions and three during 1975, and an increase of $1,065 millioninternational development institutions, placed over 1974. World Bank borrowings in the USor offered obligations in the Swiss market in amounted to $1,275 million, of which $1,2501975. Swedish issuers, the majority private en- million was sold by public offerings and $25terprises, were the largest borrowers with $377 million by private placement. Other borrow-million. Next were 18 Japanese issuers, all but ings in the US by international developmentone a private enterprise, with a total of $370 institutions were: $225 million by the Inter-million. Other major borrowers on the Swiss American Development Bank and $75 millionmarket were issuers from France ($309 million), by the Asian Development Bank.Canada ($277 million), Austria ($249 million), Israel borrowed $243 million in the US dur-and the Netherlands ($229 million). The level ing the year, a sharp reduction from the $560of bonds issued by United States and United million borrowed the year before. A furtherKingdom borrowers in the Swiss market has $295 million was borrowed by issuers in devel-declined considerably. In 1975, two US cor- oping countries: $173 million by Mexican bor-porations borrowed $42 million, the only for- rowers; $53 million by the Chilean Corporaci6neign bonds issued by US borrowers in Europe. de Fomento de la Producci6n; $35 million byTwo British enterprises borrowed a total of $40 the Federal Treasury of Brazil; $18 million bymillion. P. T. Semen Cibinong in Indonesia; and $16

Borrowing for development in Switzerland million by the Republic of Argentina.amounted to $338 million: $271 million by theWorld Bank, $22 million by the Asian Develop- Foreign Bonds: Japanment Bank, $22 million by the Inter-AmericanDevelopment Bank, and $23 million by PEMEX All borrowings in Japan in 1975 were limitedof Mexico. to governments and to international develop-

Foreign issues sold in Germany in 1975 ment institutions. By public offerings, Finlandtotaled $600 million, a gain of $338 million and New Zealand borrowed Y10,000 millionover 1974. With the exception of a $23 million each, for a total of about $67 million. Theissue by the European Coal and Steel Commu- World Bank refinanced Y42,600 million of serialnity, all other issues, amounting to $577 million, obligations held by The Bank of Japan; and Thewere by the World Bank. Included were four Bank of Japan lent the Asian Development Bankplacements of notes aggregating $248 million Y30,000 million and the Inter-American Devel-with the Deutsche Bundesbank to refinance an opment Bank Y7,500 million. Altogether, bor-equal amount of maturing notes. Issues on the rowings of yen by these three developmentNetherlands market were $209 million, up $205 institutions in the year equaled $274 million.million above 1974, when only $4.1 million wasissued. Issues in Belgium declined $2 million, International Bondsto $101 million; in Italy, up $65 million, to $81million; and, in Luxembourg, up $17 million, Volume of international bonds in 1975to $46 million. A total of $58 million and $32 turned upward, after declining in the two pre-million, respectively, were sold on the French ceding years. The total, $10,171 million, a newand British markets, neither of which had for- peak, was $5,656 million, or 125%, highereign issues in 1974. than in 1974. Public offerings amounted to

$6,754 million and private placements to $3,417Foreign Bonds: the United States million.

Large increases in borrowings by issuers inSales of foreign issues in the United States the industrialized countries more than ac-

market rose 91 % to a record $6,838 million, of counted for the rise in volume. As a group,which $5,699 million were sold by public offer- they borrowed $8,128 million internationallying and $1,139 million by private placement. in 1975, accounting for 80% of total interna-Canadian issuers and the World Bank were the tional transactions, and a gain of $5,841 millionprincipal borrowers in the US in 1975, account- over volume reported in 1974. Issuers in theing for 64% of total transactions. industrialized countries of Europe increased

In 1975, Canadian issuers increased their bor- their borrowings on the international marketsrowings in the US by $1,171 million, to a total by $3,040 million to $4,449 million, and issuersof $3,105 million, including $2,497 million of in other industrialized countries by $2,801 mil-public offerings and $608 million of private lion to $3,679 million. 88

The expansion in international borrowings principal amount of its two-year US dollar is-by issuers from the industrialized countries in sues-placed with governments, central banks,1975 proved, in part, the increased importance and international institutions-by $132 million,of this market as a supplier of funds. The rea- to $590 million. The Asian Development Banksons for increased borrowings by individuai borrowed $89 million internationally, and theissuers differed from country to country, and Inter-American Development Bank borrowedranged from balance of payments considera- $56 million in the period.tions to the financing of quickening economic United States dollars and Deutsche markactivity. continued to be the most sought after curren-, In Europe, issuers in France expanded the cies in the international bond market, and

volume of their international borrowings by three-quarters of the issues sold in that market$925 million to $1,258 million: $1,123 million in 1975 were denominated in them. Issues de-by public offerings and $135 million by private nominated in US dollars totaled $4,807 million,Placements. Public enterprises in France, in- up $1,724 million over 1974. Issues denom-cluding services, financial institutions, and re- inated in Deutsche mark rose steeply in thegional entities, borrowed $927 million; state year, amounting to $2,893 million, an increaseand local governments, $15 million; and pri- of $2,248 million over the year before.vate companies, $316 million. Netherlands guilder issues were up $269

Other major borrowers among the indus- million to the equivalent of $651 million. Ca-trialized countries in Europe were issuers in nadian dollar issues rose $507 million to $566Austria ($560 million, up $309 million); Sweden million, of which $503 million, as noted before,($559 million, up $522 million); Norway ($528 was borrowed by Canadian issuers, and $63million, up $479 million); the Netherlands million by a US company. French franc borrow-($438 million, up $88 million); and the United ings amounted to $286 million - there wereKingdom ($374 million, up $231 million). none in 1974-of which $255 million went to

Issuers in Japan and Canada accounted for French issuers, and $31 million to the Europeanmore than 60% of international borrowings by Coal and Steel Community. There were no in-the other industrialized countries. Japanese ternational issues denominated in pounds ster-borrowings, 93% by private enterprises, were ling in 1975. Sales by public offerings of Kuwaiti$1,146 million in 1975, a gain of $992 million dinar issues in the international market are dis-over 1974 volume. Canadian issuers borrowed cussed on page 87.the equivalent of $1,145 million, which was There were several issues denominated in$706 million higher than the 1974 level. In- currencies infrequently seen in the interna-cluded in these borrowings by state and local tional market. Of particular interest was thegovernments, public enterprises, and private first appearance of obligations denominated inenterprises were $503 million of publicly of- Saudi Arabian riyals. Four issues were privatelyfered obligations denominated in Canadian placed, one by a private Australian concern,dollars. another by an American company, another by

Sales of international obligations by United the Economic Development Bank of Morocco,States issuers were up $209 million to $314 and a fourth by an autopista in Spain. Theymillion, still far below the levels reported prior totaled SRls 252 million, equal to $72 million.to 1974, when US corporations, or their finan- During 1975, international bonds were alsocial subsidiaries, were major borrowers in the denominated in Hong Kong dollars ($25 mil-international market. The low level of borrow- lion), Japanese yen ($10 million), Lebaneseings by US concerns reflects the ready avail- pounds ($5 million), Norwegian kroner ($45ability of funds and generally lower costs of million), and Swedish kronor ($7 million).money in the domestic market. The Special Drawing Right (SDR) also ap-

As a group, the multilateral European institu- peared for the first time as a denominator oftions reduced their borrowings internationally international bonds. The issues, all sold byin 1975 by $827 million to a total of $749 mil- public offerings, included borrowings by Elec-lion. The European Investment Bank borrowed tricite de France, Sveriges lnvesteringsbank A/B%383 million internationally, down $588 million of Sweden, and Alusuisse International NV offrom 1974 borrowings; and the European Coal Switzerland. These issues totaled SDR 140 mil-and Steel Community borrowed $264 million, lion, equal to $173 million. In 1975, there weredown $305 million. International borrowing by 16 international issues denominated in Euro-the Council of Europe was $29 million in 1975; pean Units of Account totaling EUA 304 mil-and by Eurofima, $73 million, lion, equivalent to $391 million. The borrowers

International bond issues by international included issuers in Canada, Denmark, Finland,development institutions and developing coun- France, Ireland, Norway, and Sweden.tries totaled $1,293 million, approximately Only one international borrowing was de-13% of total international issues in 1975, and nominated in European Monetary Units during$642 million higher than in 1974. The inter- the year. It amounted to EMU 30 million,national development agencies increased their equal to $37 million, and was publicly offeredborrowings in this market by $237 million to by the South African Iron and Steel Industrial$735 million. The World Bank increased the Corporation. 89

Bond Markets-1976 Syndicated Eurocurrency Credits

The upward surge in borrowings on the for- A form of finance which has grown in im-eign and international bond markets continued portance in recent years, and which is closelyinto the first half of calendar 1976. Estimates related to foreign and international bond is-indicate that total issues on these markets in sues, is the syndicated Eurocurrency credit. In-the period were equivalent to $17,845 million, formation about publicized Eurocurrency cred-an increase of more than 75% over volume in its is compiled by the World Bank and pub-the first half of 1975 and equal to more than lished regularly along with its quarterly reports80% of total borrowings in thefullyear of 1975. on foreign and international bond issues.Of these borrowings, some $10,200 millionwere undertaken in the first quarter of 1976 -BorrowingsintheformofEurocurrencycred-and $7,600 million in the second quarter. its amounted to $20,575 million in 1975, a de-

The higher level of activity reflected a huge crease of $7,957 million, or 28%, from the rec-increase in borrowings by Canadian issuers, ord level of the previous year. This decreasecontinued heavy borrowings by French and was more than accounted for by a reductionJapanese issuers and by the World Bank, and of $12,153 million in borrowings by industrial-the entry of the European Economic Commu- ized countries to $5,090 million, a reflection,nity as a major issuer on the international bond in large part, of reduced use of this form ofmarket. borrowing for balance of payments financing

Canadian issuers sold more than $5,325 mil- by these countries in 1975.lion in obligations in the first half of 1976, Developing countries borrowed $12,429 mil-which was about $800 million more than they lion in publicized Eurocurrency credits, an in-sold in all of 1975. Contributing to this increase crease of $2,687 million, or 28%, over 1974.were two issues totaling $1,650 million that Almost all of this increase was accounted forwere privately placed in the US market by two by oil-exporting countries, which borrowedprovincial power authorities-$1,000 million $3,144 million in 1975, compared with $775by Hydro-Quebec and $650 million byOntario- million during 1974. Other developing coun-Hydro. tries borrowed $9,285 million, an increase of

The European Economic Community, by pri- only 4% over the level of 1974.vate placement and public offerings, borrowedDeutsche mark and dollars on the international Other borrowings in 1975 included $2,692market in an amount equivalent to more than million for socialist countries (up $1,575 mil-$995 million. The proceeds of the issues, along lion over 1974), $65 million for internationalwith $300 million borrowed on the Eurocur- organizations (up $51 million), all of which wasrency market, are helping to finance the bal- by the African Development Bank, and $299ance of payments deficits of Italy and Ireland million by corporate borrowers whose inter-arising from the increased costs of petroleum national activities could not be allocated byimports. country.

90

Executive Directors

Executive Directors of additional shares to existing members in ap-proximately the same proportions as the in-

With the exception of certain powers specif- creases in their IMF quotas under the Sixthically reserved to them by the Articles of General Review. As of June 30, 1976, draftAgreement, the Governors have delegated their resolutions on the proposals were being votedpowers to a Board of Executive Directors, upon by the Board of Governors; the period forwhich performs its duties on a full-time basis receiving votes expires on November 10, 1976,at the Bank's headquarters. but may be extended by the Executive Direc-

The Executive Directors consider and decide tors, if necessary. The Executive Directors alsoon the loan/credit proposals made by the Presi- approved a new lending rate formula-provid-dent. Policy is broadly decided by the Directors ing that the Bank's lending rate be reviewed atwithin the framework of the Bank's Articles of the end of each quarterly period, and adjustedAgreement. The Executive Directors are also to the average weighted cost by amount andresponsible for presentation to the Board of maturity of funds borrowed by the Bank in theGovernors at its Annual Meetings of an audit preceding 12 months -which was put intoof accounts, an administrative budget, and an effect on July 1, 1976.Annual Report discussing the operations and The Executive Directors dealt with policypolicies of the World Bank, and any other matters on development finance companies,matter that, in their judgment, requires sub- project supervision, and nutrition projects, andmission to the Board of Governors at the An- approved changes in the format and contentsnual Meetings or otherwise. of documents on proposed loans and credits.

There are 20 Executive Directors: as provided They gave particular attention to operationsin the Articles of Agreement, five are appointed evaluation in the Bank; in July 1975, they ap-by the five members having the largest number proved the appointment of a Director-General,of shares, and the rest are elected by the other Operations Evaluation, with effect from Oc-members. tober 1, 1975, to be responsible to the Execu-

tive Directors and be independent of the staffIn fiscal 1976, pursuant to the Development structure of the Bank. In April 1976, they en-

Committee's endorsement of their report on dorsed the standards and procedures for opera-the establishment of an intermediate financing tions evaluation which he prepared. The Direc-facility (or Third Window), the Executive Di- tors also considered means to expedite projectrectors adopted a resolution establishing the preparation and loan/credit effectiveness so asoperation of the new facility, and approved to accelerate the presentation and implemen-criteria for eligibility for Third Window loans. tation of projects financed by the Bank and IDA.During fiscal 1976, the Executive Directors met The Executive Directors approved an agree-19 times in formal session. They reviewed and ment on technical cooperation with Saudiapproved 141 Bank loans, including 15 on Arabia, certain arrangements with the UnitedThird Window terms, and 73 IDA credits, plus Nations Development Programme concerning11 grants for international agricultural research, projects for which the Bank is executing agen-41 borrowing transactions in Germany, Japan, cy, a technical assistance grant to the YemenKuwait, Libya, the Netherlands, Saudi Arabia, Arab Republic for economic planning and ad-Switzerland, the United States, and Yugoslavia, ministration, and a new facility (with an initialas well as two central bank issues and the bor- ceiling of $5 million) to assist, primarily, leastrowing from the Interest Subsidy Fund (Third developed countries in the preparation of proj-Window). Also approved were the Bank/IDA ects for Bank and IDA financing, and re-operating programs and administrative budgets endorsed a policy, under which technical andfor fiscal 1977. financial assistance would be provided for the

In a major decision, they approved the sub- promotion of domestic construction industriesmission of proposals to the Board of Governors in developing countries.for an increase in the Bank's authorized capital They received progress reports on the nego-from $27,000 million to $34,000 million (both tiations regarding the Fifth Replenishment ofin terms of 1944 US dollars), and the offer IDA resources, and on the proposed establish- 91

ment of an international fund for agricultural Board's approval of a revised statement of stan-development. dards and procedures for operations evalua-

The Executive Directors participated in meet- tion, the Committee's terms of reference wereings of the Development Committee in Jamaica again amended in April 1976 to enable it toand Washington. In February 1976, a group of review papers produced by the Operationsthree Directors visited India and Nepal. Evaluation Department to identify problems or

policy issues for consideration by the ExecutiveA list of all Executive Directors and Alterna- Directors.

te Executive Directors, showing their voting The Committee's responsibility under itspower and the countries they represent, with terms of reference, besides those for the Bank'snotations of changes during the year, appears internal audit and operations evaluation activi-on page 157. ties, is to nominate a firm of private, inde-

pendent, internationally established accoun-Joint Audit Committee tants to conduct the Bank's annual audits, to

discuss with them the scope of their examina-The Joint Audit Committee was established tions, to review with them the annual audited

in 1970. It consists of six Executive Directors financial statements and the opinions thereon,appointed by the Board for a term of two and to report to the Executive Directors. Thus,years after each regular election of Executive the Committee serves as a focus for considera-Directors. In December 1975, Jacques Henri tion of the Bank's financial control and opera-Wahi succeeded Choi Siew Hong as chairman tions evaluation procedures. Through its dis-of the Committee. cussions with the relevant officers and with the

Following an amendment to the Committee's independent accountants, it helps to provideterms of reference in November 1973 to in- assurance to the Executive Directors that theclude in its responsibility the duty to satisfy it- Bank's financial and operational affairs areself that the Bank's internal audit and opera- properly conducted. It provides a continuingtions evaluation are adequate and efficient, the channel through which the internal and ex-Committee continued to give high priority ternal auditors may communicate with theduring fiscal 1976 to this aspect of its work. Executive Directors, should the need arise.Pursuant to the Committee's established frame- Of continuing concern to the Committee iswork for its relationship with the Internal Au- the adequacy of the flow of financial informa-diting and Operations Evaluation Departments, tion to the Executive Directors, in order for theit reviewed the Departments' work programs, Board to discharge properly its responsibilitieswork in progress, desirable standards and pro- with respect to the financial policies of thecedures of reporting, and samples of reports Bank. In this respect, following the Commit-produced. For this purpose, it maintained close tee's recommendation, the system for provid-liaison with the Director, Internal Auditing De- ing financial information to the Board was re-partment, and the newly appointed Director- viewed, and will continue to be reviewedGeneral, Operations Evaluation. Following the periodically by the Joint Audit Committee.

92

Statistical Annex

Table Page

General Notes to Annex Tables .......................... ......................................... 94

1 Selected Economic Indicators for Developing andIndustrialized Countries-Regional Summary ...................................................... 96

2 World Exports, by Origin and Destination, 1964-75 ..... ............................. ........... 98

3 The Flow of Financial Resources from DAC Countries toDeveloping Countries and Multilateral Institutions, 1970-75 ........................................ . 100

4 86 Developing Countries-External Public DebtOutstanding, by Region, 1967-74 ........................................................... 101

5 External Public Debt Outstanding of 86 DevelopingCountries, by Country and Type of Creditor, December 31, 1974 ....................................... 102

6 Service Payments on External Public Debt as Percentageof Exports of Goods and Non-factor Services, 1967-74 ....... 104

7 Projected Debt Service on External Public Debt Outstanding,by Region and Type of Creditor, as of December 31, 1974 ............................................ . 106

8 External Resource Flows and Service Paymentson External Public Debt, by Region, 1967-74 ..................... ........................... . 108

9 Average Terms of Loan Commitments and Grant Elementof Loans and Grants, by Region, 1967-74 ...................................... ................. 109

10 Foreign and International Bond Issues, by Market andCountry of Borrower Entity, 1973-75, First Half 1976 ........... ..................................... 110

11 Average Issue Yield of New Publicly Offered Foreignand International Bonds, 1973-75, First Half 1976 .. ....... ............................... 113

93

General Notes to Annex Tables

The tables of this Annex present data on selected economic indi- fication of countries by geographic region. The classification is nowcators, world trade, the flow of financial resources, external public as follows:debt, and international capital markets. As in past Annual Reports, Africa South of the Sahara-Benin (People's Republic of), Bots-most of the tables are organized on geographic lines. wana, Bururdi, Cameroon, Central African Republic, Chad,

In Table 1, the basic series on selected economic indicators is Congo (People's Republic of the), East African Community,based on data stored in the I BRD Socic-Economic Data Bank which Ethiopia, Gabon, Gambia (The), Ghana, Ivory Coast, Kenya,are mainly obtained from World Bank country economic reports, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania.supplemented by data from national and other international pub- Mauritius, Niger, Nigeria, Rwanda, Senegal, Sierra Leone',lications. The indicators presented in this table are the same as Somalia, Sudan, Swaziland, Tanzania, Togo, Uganda, Upperthose of last year except for growth rates of GDP and GDP per capita Voita, Zaire, Zambia.which are substituted by the respective growth rates of GNP and E - (GNP per capita. Country coverage includes the 86 countries listed (Republic of), Malasia, Philippines, Singapore, South Vieabelow, plus 17 countries listed in the Note to Table 1. Nam Mand.

In Table 2, the data on world trade are classified by origin Nam, Thailand.destination, and geographic regions, principally on the basis of data Latin America and the Caribbean-Argentina, Bolivia, Brazil,published in the "UN Monthly Bulretin of Sp aths cs i d Chile, Colomb a, Costa Rica, Dominican Republic, Ecuador, El

In Table 3 the data on the flow of financiai resources have been Salvador, Guatemala, Guyana. Honduras, Jamaica, Mexico,provided by the Development Assistance Committee (DAC) of the Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago,Organisation for Economic Co-operation and Development (OECD). Uruguay, Venezuela.Thefiguresfor 1975 are drawn fromthefirst public statementcon- North Africa and Mliddle East-Afghanistan, Algeria, Cyprus,cerningdevelopmentassistanceflowsforall DAC r-embercountries Egypt (Arab Republic of), Iran, Iraq, Jordan, Morocco, Syrianin that year, the figures are, therefore, subject to revision. Data Arab Republic. Tunisia.for earlier years incorporate revisions of figures previously pub- South Asia-Bangladesh, Burma, India, Pakistan, Sri Lanka.lished for those years. iore advanced Mediterranean countries-Greece, Israel, Malta,

In Tables 4 through 9, the principal source of data on external Portugal, Spain, Turhey, Yugoslavia.debt is information received by the World Bank from its member Tables 4 through 9 refer to anl of thie above ccuntries except wherecountries. These data are checked with and supplemented by in- otherwise specified in the footnotes to a particular table. The notesformation from several other sources, primarily reporting by on debt of Israel, the Philippines, and Yugoslavia in Table 4 applycreditor countries on their lending. to all Tables 4 through 9.

In Tables 8 and 9, the source of data for grants is OECD; Not all of the 86 countries have been reporting for the full his-for grant-like loans, the data sources are OECD and the Inter- torical period, 1967-74, covered by the tables. Where individualAmerican Development Bank (IDB). country reports are lacking for certain years, estimates have been

The 86 countries included in the tables are those whose reporting made by Bank staff in order to present a consistent series of data.on external public debt is sufficient for a reliable presentation of For the purpose of these tables, external public debt is defineddebt outstanding and future service payments. Compared with as debt repayable to external creditors in foreign currency, goods,earlier Annual Reports, some changes have been made in the classl- or services, with an crigina' or extended maturity of more than one

94

year, which is a direct obligation of, or has repayment guaranteed disbursements by IDB on loans repayable in local currencies. In-by, a public body in the borrowing country. Most military debts are cluded in the first and second are grants for technical assistance.not reported, although a few countries have included such obliga- Data for grants do not include grants from bilateral donors othertions in their data. than DAC countries although grants from other sources may have

In Table 6, debt-service ratios represent service payments been large to some developing countries. However, debt data(amortization plus interest)on external public debt as a percentage include obligations to creditors of all nationalities.*of the exports of goods and non-factor services. The debt-service In Table8, netflow is defined asdisbursementson loans, grants,figures used in the present table are those for actual debt service and grant-like, minus amortization on loans, Net transfer is netpaid (as compiled from country reports) during the year. If a flow minus interest on loans. In Table 9, grant element is definedcountry did not pay the entire amount of contractual debt service as the face value of loan commitments less the discounted presentduring a year, this may be reflected in a somewhat lower debt- value of the future flow of repayments of principal and interestservice ratio than would have been the case if contractual debt expressed as a percentage of face value. The discount rate used isservice instead of actual service paid had been used in computing 10%, the conventional rate used by OECD in assessing terms.the ratio. Likewise, the prepayment of debt service may result in a The World Bank continues to work in cooperation with its mem-higher debt-service ratio. ber countries toward the improvement of debt statistics. This effort

The debt-service ratio is, by itself, an inadequate and incomplete results in many cases in a broadening of the coverage of the dataindicator of a country's debt situation, and international compari- for both current and past periods. Therefore, a comparison withsons of these ratios have only limited meaning. Many other factors debt tables in the 1975 Annual Report will show changes in datamust also be considered, such as the stability and diversification of given for past years. The current Annual Report should be regardedthe country's export structure, the prospects for future growth, the as the more reliable. Users of Table 5 in the 1975 and 1976 Annualextent to which imports can be reduced without adversely affecting Reports should be particularly careful in making comparisons, ascurrent production, the time profile of the country's debt outstand- apparent increases or decreases in debt outstanding are, in manying, the size of foreign exchange reserves and available compen- cases, merely the result of improvements in knowledge.satory financing facilities, and the debt-service record of the coun- DAC information on capital flows is converted to US dollars bytry. Further, external public debt constitutes only a part of the the Secretariat of OECD. Data on debt outstanding and servicetotal indebtedness of a number of countries, and thus considerably payments for the years 1967-71 were converted to US dollars at theunderstates the burden of indebtedness in some cases. The debt- rates in effect during those years, for the most part IMF par values.service ratio is only an indication of the importance of debt and The rates used for 1971 and subsequent years are current marketdebt service in a country's total foreign exchange situation; rapid rates, or, if valid, IMF par values or central exchange rates. For theincreases over time without other compensating factors, can signal years 1971-74, capital flows and service payments were convertedproblems ahead. to US dollars at an average rate for the year. Debt outstanding was

In Tables 8 and 9, grants consist of grant and grant-like (loans converted at the rate in effect as of the date of the outstanding.repayable in local currency) contributions; they are on a disburse- Projected debt service was converted to US dollars at end 1974ment basis in both tables. The grants included in these tables rates. However, debts repayable in multiple currencies, goods, orcomprise: (1) contributions by countries which are members of services, and debt which has a provision for maintenance of valueDAC; (2) grants by multilateral agencies as compiled by OECD; (3) of the currency of repayment, are shown at their book values.

95

Selected Economic Indicators for Developing andIndustrialized Countries-Regional SummaryAverage annual real growth and shares in GNP, 1961-65. 1966-71. 1972, 1973, 1974,and 1975 (percentagesa

Reg&on 1961-65 1966-71 1972 1973 1974 1975(P)

Developing countriesReal rate of growth:Total GNP ...................... 5.9 6.1 6.5 7.5 6.4 2.6Agricultural production ....... 2...... ... .9 3.3 0.7 3.3 2.5 5.0Manufacturing production ...... . .. .... 10.2 8.1 10.5 10.2 7.0 -Population ................ ..... 2.4 2.4 2.4 2.5 2.5 2.5GNP per capita ............. ............ 3.3 3.6 4.1 4.9 3.8 0.1Gross investment ...... 9 ...... 7.2 9.1 10.9 14.9 -

Share in GNP:Gross investment ....... ..... .... 19.1 2C.3 21.2 21.4 21.9 -Gross national saving .................... 17.5 18.2 20.2 21.8 21.8 -

Africa South of the SaharaReal rate of growth:Total GNP .............................. 4.0 5.5 4.5 4.8 5.2 2.9Agricultural production ................. 2.5 2.6 -1.6 -3.7 6.3 2.9Manufacturing production .............. 9.4 8.3 10.9 8.4 7.9 -Population .............. .......... 2.5 2.6 2.6 2.6 2.7 2.7GNP per capita .... .. ...... 1.4 2.8 1.9 2.1 2.4 0.2Gross investment ....... ............ 6.6 7.4 -2.0 10.1 5.6 -

Share in GNP:Gross investment ............... ....... 16.2 17.5 19.1 19.6 18.7 -Gross national saving ...... ....... 12.1 13.5 14.2 17.6 24.9 -

East Asia and PacificReal rate of growth:Total GNP ........... ... ... .. 5.3 7.2 6.3 10.9 5.1 4.0Agricultural production ......... 4.9 3.7 -0.2 9.2 3.1 4.2Manufacturing production ...... . ... .... 9.3 14.4 14.5 17.8 7.0 -Population . ....... 2.5 2.5 2.5 2.4 2.4 2.3GNP per capita............... ......... 2.7 4.6 3.8 8.3 2.7 1.6Gross investment .... 1............... 1C.9 13.9 1.3 17.2 20.7 -

Share in GNP:Gross investment. . . ..... 15.1 19.9 22.2 23.5 27.0 -Gross national saving ............. ..... 11.3 14.3 17.5 21.0 21.0 -

Latin America and the CaribbeanReal rate of growth:Total GNP ......... 5.3 5.8 6.8 7.1 6.4 2.7Agricultural production .................. 3.8 2.7 2.3 0,6 4.9 2.5Manufacturing production ................. 6.2 7.4 9.8 9.7 6.4 0.8Population ................... ...... 2.8 2.8 2.8 2.9 2.8 2.8GNP per capita .......... ......... 2.4 2.9 3.9 4.1 3.6 -0.0Gross investment ......... 4.5 7.4 10.4 9.6 20.5 -

Share in GNP:Gross investment ............... ........ 20.2 20.2 21.4 21.6 23.5 -Gross national saving ........ . ........... 19.6 18.5 19.1 20.1 19.9 -

North Africa and Middle EastReal rate of growth:Total GNP .............................. 6.6 7.9 12.4 10.9 14.0 -0.2Agricultural production.. .............. ... 3.6 2.3 12.0 -4.8 6.5 0.0Manufacturing production ................ 10.1 8.3 7.9 11.6 20.9 -Population ............................ 2.6 2.8 2.8 2.7 2.8 2.7GNP per capita .... ........ ...... 3.8 5.0 9.4 8.0 10.9 -2.8Gross investment ........................ 10.6 7.8 17.4 16.0 34.2 -

Share in GNP:Gross investment ............. .......... 18.2 20.7 20.6 20.3 18.4 -Gross national saving ................. 20.5 22.6 27.9 34.0 37.1 -

96

Table 1

Region 1961-65 1966-71 1972 1973 1974 1975rP,

South AsiaReal rate of growth:Total GNP 3.8 . ..................... ... .8 4.2 -1.6 4.0 1.5 4.4Agricultural production .9 . . .............. .9 3.5 -3.2 8.5 -5.3 10.0Manufacturing production .9.1 ............. .1 3.3 3.3 3.1 1.7 3.2Population ...................... ... .5 2.4 2.2 2.4 2.4 2.5GNP per capita ........ ....... ......... .3 1.8 -3.7 1.5 -0.9 1.9

-Gross investment . ............. .... . 8.1 3.1 4.7 -0.8 5.7 -

Share in GNP:Gross investment . .17.1 17.0 17.8 16.3 15.6 -Gross national saving 14.1 14.6 16.0 14.4 13.4 -

More advanced Mediterranean countriesReal rate of growth:Total GNP . .7.2 6.6 7.9 7.2 4.9 2.6Agricultural production . .2.8 4.0 2.4 2.4 7.7 3.4Manufacturing production . . 12.1 8.8 13.3 10.4 6.1 6.8Population . ........... 1.3 1.4 1.2 1.4 1.4 1.5GGNP per capita . .... .. ..... .. 5.8 5.1 6.6 5.6 3.5 1.0Gross investment . . 12.3 6.0 11.9 12.4 2.9 -

Share in GNP:Gross investment .... 24.2 23.4 23.6 24.4 24.2 -Gross national saving . ..... 20.6 20.4 22.2 21.8 17,0 -

Industrialized countriesReal rate of growth:Total GNP ........... . ........... 5.3 4.7 5.5 6.1 -0.0 -2.0Agricultural production .. ...... ....... 1.9 2.4 0.1 2.5 2.5 1.2Manufacturing production . .............. 6.4 5.2 6.4 9.8 -0,3 -6.8Population ............ .... .... 1.2 1.0 0.9 0.9 0.8 0.6GNP per capita ....... . .............. 4.0 3.6 4.5 5.2 -0.8 -2.6Gross investment ......... . 7.1 5.4 5.7 10.4 -4.4 -

Share in GNP:Gross investment. ............. ...... 22.5 23.1 23.4 24.4 22.3 -Gross national saving ..... ........... 23.1 23.8 24,1 25.0 22.3 -

Note: Allthecountrieslisted below have been included forthe estimatesofthe real ratesor growthofGNPand popula-tion. For other indicators, some countries have been omitted due to lach Df data.

Industrialized countries-Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany(Federal Republicoft, Iceland, Ireland, Italy, Japan. Luxembourg, Netheriands, NewZealand, Norway, South Africa, Sweden, Switzer-land, United Kingdom, United States.

Developing countries-Those listed in the "General Notes to Annex Tables" and those below:Africa South of the Sahara-Guinea.

East Asia and Pacific-Cambodia, Laos, Papua New Guinea, Western Samoa.

Latin America and the Caribbean-Bahdmas, Barbados, Grenada, Haiti.

* North Africa and Middle East- Kuwait, Lebanon, Libyan Arab Republic, Oman, Saudi Arabia, Yemen Arab Republic,Yemen X People's Demnocratic Republic of).

South Asia-Nepal.

(Pi Preliminary.

,Source: World Bank.

97

World Exports, by Origin and Destination, 1964-75 Table 2Exports to

Developed Cenitrally planinedWorldi total miarket economiies Developing miarket economiies economiies

Western Middle Otherfotal Total Hemisphere Africa East Asia Total

An Hr.i An itial Ai io ual AnnualExports fromi tlS$ mjill joirs Percenitage growt hrite Percenitage growthi rate Pencenitage growthi rate Percentage Percentage Percenitage Percenitage Percentage growtti rate

World (1) (2)

1964-69 annual average . ........ 214,695 100.0 9.2 68.8 10.1 19.5 7.6 6.0 3.9 2.4 6.6 11.0 6.91 970 ....................... . 313,200 100.0 1 4.8 70.6 15.4 18.5 12./ 5.9 3.8 2.3 6.0 10.2 1 3.2] 97 1 ............. ....... 350,100 100.0 11.8 70.8 .12.0 18.5 12.3 5.8 3.8 2.4 6.0 9.9 7.7197 2 415,650 100.0 18.7 7 1.8 20.5 18.0 15.3 5.7 3.5 2.5 5.8 10.2 22.61973 . . .. 576,960 100.0 38.8 7 1.0 3/7.1 18.3 40.8 5.4 3.5 2.6 6.1 9.9 34.81974 831,430 100.0 45.1 70.2 43.6 20. 62.9 6.6 3.8 3.4 6.3 8.6 26.31915 (P) ...... 878,520 100,0 4.9 66.3 ----1.0 22.63 15.8 6.6 4.6 4.8 6.2 10.5 27.31970-75 annual average..... 561,976 100. 26.0 69.6 24.8 20.0 31.0 6.2 3.9 3.3 6.2 9.8 24.8

Developed market economies3)o 4r1964-69 annual average .. .... 149,895 100.0 10.1 75.1 10.8 20.1 7.9 6.5 4.3 2.4 6.5 4.1 9.21970 ... ......... 224,840 100.0 15.9 76.7 16.0 18.6 13.2 6.2 4.1 2.2 6.0 4.0 17.9197 1 .............. 251,430 100.0 11,8 7 6.8 1 1.9 3 8.8 12.5 5.9 4.2 2.4 5.9 3.8 7.21972 298,570 100.0 18.7 77.2 19.5 17.9 13.4 5.8 3.9 2.6 5.4 4.3 26.91973 ..... .... 407,820 100.0 36.6 76.4 35.2 18.1 37.9 5.5 4.0 2.7 5.7 4.8 52.91974 543,650 100.0 33.3 73.3 27.8 20.9 54.3 6.5 4.5 3.1 6.0 5.2 43.51975 (P), 580,450 100.0 6.8 69.6 1.4 23.8 21.6 6.5 5.6 5.6 5.9 6.0 25.20970-75 annual average . 384,460 100.0 23.4 74.1 21.2 20.3 29.1 6.1 4.5 3.6 5.9 4.9 34.6

Developing market economniesf3, rO~ (A.1964-69 annual average .. .... 40,017 100.0 6.9 73.2 7.4 20.3 5. 6.4 2.8 2.1 8.1 5.8 3.71970 .......... .. 55,010 100.0 13.1 73.9 13.4 19.5 11.0 6.2 2.9 2.4 7.7 5.7 19.01971 .... , . ..... 62,240 100.0 13.1 73.5 12.5 20.1 16.5 6.9 2.6 2.5 7.8 4.9 -2.919/2-...... 74,890 100.0 20.3 74.4 21.8 20.6 23.4 7.2 2.3 7.4 8.7 4.6 13.51 9/3 1 11,080 100.0 48.3 73.3 46.1 20.6 4 8.5 6.9 2.3 2.5 8.8 4.6 49.319/4 .......... 221 780 100.0 99.7 74.9 103.9 20.9 102.9 8.3 2.1 2.8 7.6 3.5 50.119/5 (P) ..... _ .. . 211,260 100.0 -4.7 7/2.9 -7.3 22.5 2.3 8.6 2.5 3.3 7.9 3.9 7.41970-75 annual average 122,710 100.0 36.7 73.8 36.6 21.2 40.0 8.0 2.4 2.8 8.0 4.2 26.0

Western Hemisphere1964-69 annual average ..... 13,372 100.0 4.2 74.8 4.3 18.7 6.0 16.7 0.8 0.3 0.9 6.0 -1.71970 .............. 17,190 100.0 13.2 75.1 12.8 18.2 6.5 16.3 0.7 0.2 1.0 6.3 47.31971 . ............ 17,660 100.0 2.7 73.7 0.8 20.0 13. 18.2 0.6 0.3 0.8 4.6 -25.71972 .. ... . 20,630 100.0 16.8 73.5 16.6 20.7 20.9 18.6 0.7 0.4 0.9 4.6 18.51973 ... 29,040 100.0 40.8 70.9 35.7 21.8 47.4 18.1 1.1 0.8 1.8 6.4 93.71974 .... ....... 48,090 100. 65.6 69.7 62.9 23.0 75.0 19.6 1.6 0.9 0.8 5.6 45.71975 (P) .... .. 47,440 100.0 -1.4 67.9 -4.0 23.0 -1.3 19.3 2.0 1.1 0.6 6.9 20.71970-75 annual average .. 30,008 100.0 27.2 70.8 24.7 21.8 33.2 18.7 1.3 0.8 0.9 5.9 32.2

co

Africa(6 )1964-69 annual average........ 8,385 100.0 9.2 83.2 9.0 9.6 7.2 0.9 5.0 1.3 2.2 6.8 8.81970 ... ... 12,310 100.0 12.1 81.7 10.4 10.1 15.9 1.9 5.3 0.9 1.9 7.3 21.61971 ... .. 12,840 100.0 4.3 78.4 0.1 12.7 31.0 3.4 6.0 1.1 2.2 7.7 10.01972 .... ............. 14,530 100.0 13.2 80.7 16.4 10.8 -3.4 3.5 3.9 1.0 2.4 7.6 11.11973 .... ................ . 20,650 100.0 42.1 81.5 43.6 11.5 51.6 3.8 5.0 0.9 1.8 6.5 21.81974 .... ............... . 38,410 100.0 86.0 83.1 89.7 11.8 90.8 5.9 4.0 0.8 1.2 4.7 35.81975 (P) . .. . 34,920 100.0 -9.1 80.3 -12.2 14.3 9.7 7.4 4.6 0.9 1.4 5.4 4A41970-75 annual average ..... 22,277 100.0 28.8 81.3 29.1 12.2 34.8 5.1 4.6 0.9 1.6 6.0 17.9

Middle East1964-69 annual average ........ 7,606 100.0 9.0 75.6 10.2 19.4 6.7 1.5 3.4 8.1 5.9 2.8 6.91970 ...................... 10,590 100.0 14.9 76.5 14.9 19.5 22.6 1.9 3.4 7.6 6.2 2.5 0.01971 .. ..... .... ...... 15,260 100.0 44.1 76.0 43.1 19.5 44.2 3.1 2.9 6.2 7.3 2.2 28.81972 .... . . 19,050 100.0 24.8 76.2 25.2 20.2 29.3 4.1 1.6 5.9 8.3 2.5 41.81973 . ..... - .. 28,980 100.0 52.1 74.4 48.7 20.2 52.3 4.3 1.8 5.7 7.7 2.4 45.31974 . ........ ..... 87,570 100.0 202.2 77.1 213.0 20.7 210.4 6.4 1.5 4.4 8.3 1.6 102.91975 (P) ... . . . . 82,010 100.0 -6.4 76.9 -6.7 20.9 -5.4 6.4 1.7 4.8 7.9 1.7 0.71970-75 annual average ........ 40,577 100.0 57.5 76.5 57.6 20.6 60.0 5.6 1.8 5.1 7.9 1.9 45.5

Other Asia1964-69 annual average ......... 10,305 100.0 7.1 60.9 8.3 31.7 5.8 1.4 3.1 2.6 24.2 7.2 4.01970 ........... 14,440 100.0 13.3 63.8 16.7 29.6 8.4 1.2 3.4 2.5 22.0 6.1 -1.11971 .. . 16,020 100.0 10.9 65.4 13.7 28.2 5.9 1.2 3.1 2.5 21.0 5.5 0.01972 . ........... 20,040 100.0 25.1 66.9 28.0 28.4 25.8 1.3 2.6 2.3 21.7 4.5 3.41973 . .............. ... 31,450 100.0 56.9 68.5 60.7 26.4 45.8 1.3 2.0 2.1 20.6 4.0 38.51974 . . 46,350 100.0 47.4 68.5 47.5 27.2 52.0 2.2 2.4 3.4 188 3.9 42.11975 (P) .... 45,650 100.0 -1.5 64.7 -7.0 31.5 13.8 2.5 2.7 3.9 21.8 3.7 -4.51970-75 annual average ... .... 28,992 100.0 30.8 66.6 31.7 28.6 31.3 1.8 2.6 3.0 20.7 4.3 17.9

Centrally planned economies(7) (8)1964-69 annual average ......... 24,767 100.0 7.8 23.5 10.0 15.1 9.3 3.4 2.9 2.1 5.0 60.9 6.51970 ....... . .... 33,360 100.0 10.7 24.1 12.1 15.5 11.9 3.1 3.6 2.7 3,8 59.7 10.41971 ....... ... 36,420 100.0 9.2 24.7 12.1 14.6 2.5 2.9 3.3 2.7 3.7 59.9 9.61972 ........ ... ....... 43,200 100.0 18.6 24,7 18.6 14.1 15.1 2.7 3.1 2.4 3.5 60.5 19.71973 .............. ...... 57,890 100.0 34.0 27.8 50.5 15.2 44.3 2.4 2.7 2.4 3.9 56.0 23.91974 .... ........... 71,990 100.0 24.3 32.6 45.6 16.1 31.7 2.7 3.3 3.0 4.8 50.5 12.21975 (P) ................... 86,800 100.0 20.6 28.1 4.1 15.2 13.8 2.8 2.9 3.0 4.3 55.8 33.31970-75 annual average ..... .. 54,943 100.0 22.6 27.8 28.7 15.2 23.5 2.8 3.1 2.7 4.1 56.1 19.3

I1) The figures for total exports include certain exports which, because their regions of destination could riot be determined, are not included elsewhere in this table.(2) Excludes the intertrade of the centrally planned economies of Asia aold the exports of Rhodesia."3) This classificatiotn is intended for statistical convenience and does tiot eiecessarily express a judgrmierit about the stage reached by a particular country in the development process.(4) Ilicludes Israel, excludes Turkey.(5) Includes Turkey, exclides Israel.(6) Excludes exports of Rhodesia.;7) Exports of the USSR, for which couritry of destination could not be attributed, are uuicluded in total exports to developing market economies.(8) Excludes the intertrade of the centrally plaiined economies of Asia.(P) Prelinminary.Source: United Nations.

SnSn7

The Flow of Financial Resources from DAC Countries(M) to Table 3Developing Countries and Multilateral Institutions, 1970-75(Amounts in US $000 millions)

1970 1971 1972 1973 1974 19 7

5(P)

Net disbursementsTotal, official and private(2 .14.80 16.93 18.66 23.29 26.77 37.46Total official ........................ ......... 7.93 8.95 10.08 11.84 13.50 16.27Official Development Assistance(3 ....... ....... 6.79 7.69 8.54 9.38 11.32 13.61Grantsi, . ....................... . 3.31 3.63 4.36 4.46 5.34 6.31Multilateral contributions ................... 1.12 1.35 1.92 2.27 3.06 3.76Bilateral loans ........ ....... .... 2.36 2.71 2.27 2.65 2.92 3.54

Other Official Flows(" .1 . ....... 1.14 1.26 1.55 2.46 2.18 2.66Total private(2) . ...... ............ 6.88 7.98 8.57 11.45 13.27 21.19Direct investment ........................... 3.54 3.63 4.47 6.71 7.06 9.18Bilateral portfolio investment .................. 0.72 0.73 1.98 3.29 3.80 n.a.Multilateral portfolio investment .............. 0.47 0.77 0.67 0.26 -0.07 n.a.Private export credits ................. ...... 2.14 2.85 1.45 1.20 2.48 6.19

Volume indicators (net disbursements)Total flow as share of GNP (%Yo.2) .. .............. 0.73 0.76 0.73 0.75 0.78 0.99Official Development Assistance as shareof GNP () . ................... 0.34 0.35 0.33 0.30 0.33 0.36

Private and Other Official Flovws as shareof GNP (%)20( .0.40 0.42 0.40 0.44 0.45 0.63

Terms indicatorsGrants as share of ODA net disbursements (7)(6' 48.7 47.2 51.0 47.6 47.2 46.4Weighted average maturity of ODA loans(years)5 7) .......... ................. 30.20 29.10 29.50 32.00 n.a. n.a.

Weighted average grace period of ODAloans (years)i7) . ................... 7.30 7.00 7.80 8.40 n.a. n.a.

Weighted average interest rate of ODAloans (7) ...... .. .... 2.80 2.80 2.80 2.40 n.a. n.a.

Grant element of total ODAcommitments ( .)x. . . . 84.10 82.60 84.80 87.50 86.00 87.00

Note: Items may not add to totals due to rounding. All data at current prices and exchange rates.') Australia, Austria, Belgium, Canad2, Denmark. Finland, France, Germany (Federal Republic of,, Italy, Japan, Netherlands, New Zealand,

Norwoay, Sweden, Sitzerland, United Kingdom, and United States.0) Excluding grants by private voluntary agencies. From all DAC countries, these totaled an estimated $858 million in 1970, 5913 million

in 1971, $1.035 million in 1972, $1,364 million in 1973, $1,217 million in 1974. and $1,371 million in 1975. In each year, these figuresrepresented about 0.04% of GNP.

U Otficiai Development Assislance (ODA' is defined as al flows to less developed countries and multilateral institutions provided by officialagencies, including state and local governments, or by their executive agencies which m eet the folloswing tesos:,'a They are administered with the promotion of the ecouromic development and welfare of developing countries as their main objective.(bz Their financial terms are iurtended to be concessional in character.I0) Inc uding "graurt-like' flows denominated in recipients' currencies.

(5' Other Ofticial Flows- incluce, in particular:(a' Official bilateral transactions which are not cancessional or which, even though they have concessieral elements, are primarily export

taculitating in purpose.(bo The net acquisition by governments and ceritral monetary institutions of securities issued by multilateral development banks at market

terms. Rediscounting of trade instruments by central monetary authorities is not included.(6) Including multilateral cnntributions.>7) Commitments.(8) Discounted at 10%/.(P Preliminary.n.a. Not available.source: oECD.

100

86 Developing Countries-External Public Debt Table 4Outstanding, by Region, 1967-74,uS$ millions)

Africa South East Asia Latin America North Africa MoreadvancedDebt outstanding of the and and the and MediterraneanYear Sahara Pac,fic'lU Cariobea.r Mirdle East(51 South Asia caaUntrlesO

3' Total

Total debt outstanding end of year1967 . ..... ...... 4,628.8 5,308.8 15,075.2 7,164.5 11,413.6 7,000.6 50,591.51968 . . 5,330.9 6,406.5 16,890.5 7,949.2 12,668.7 7,888.6 57,134.51969 ... .5,883.9 8,014.8 18,650.3 9,239.2 13,636.1 8.881.8 64 306.01970. . 7,327.1 9,325.0 21.286.8 10,801.8 15,139.2 10,348.9 74.228.8171 . .8,345.2 11,492.6 24,934.0 13,264.6 16,547.3 12,464.2 87,048.01972. .9,554.9 14,109.0 30,087.5 15,426.6 17,821.0 14,229.0 101,228.01973. 12,582.0 17,205.8 36,359.4 19,629.7 19,992.7 16,098.2 121,867.71974. . .... 15,957.3 23,761.8 45,385.3 22,791.5 23,383.8 20,119.7 151,399.3

Debt outstanding by type of creditorDecember 31, 1967Bilateral official. 2,260.9 2,747.5 5,781.4 5,355.6 8,358.8 3,446.9 27,951.0Multilateral .770.0 711.0 3,265.4 450.1 2,298.3 1,034.8 8,529.5PrivateSuppliers .... ......... 736.8 1,336.5 2,667.3 962.8 624.2 769.8 7,097.4B anks .145.4 150.7 1,413.7 322.9 115.0 679.7 2,827.6Other. 715.7 363.0 1,947.4 73.1 17.3 1,069.5 4,186.0Total ......... 4,628.8 5,308.8 15,075.2 7,164.5 11,413.6 7,000.6 50,591.5

December 31, 1968Bilateral offticial. 2,549.4 3,375.3 6,272.8 5,821.6 9,328.3 3,769.7 31,117.1Multilateral .939.2 825.6 3,817.4 483.1 2,481.7 1,165.2 9,712.3PrivateSuppliers .868.7 1,711.6 3,050.5 1,174.0 700.2 787.3 8,292.4Banks .205.7 153.6 1,704.8 378.6 142.5 956.2 3,541.4Other .767.9 340.4 2,044.9 92.0 16.0 1,210.1 4,471.2Total . .... 5,330.9 6,406.5 16,890.5 7,949.2 12,668.7 7,888.6 57,134.5

December 31, 1969Bilateral official. ... 2.789.1 4,107.2 6,606.6 6,232.3 10,001.6 4,117.9 33,854.6Multilateral .1,241.0 1,179.9 4,248.2 654.6 2,726.2 1,277.3 11,327.3PrivateSuppliers .800.2 2,006.2 3.317.7 1,664.3 762.3 940.0 9,490.7Banks .245.4 329.5 2,296.5 594.5 132.8 1,233.7 4,832.4Other . .... 808.1 391,9 2,181.2 93.5 13.2 1,312.9 4,800.9Total .5,883.9 8,014.8 18,650.3 9,239.2 13,636.1 8,881.8 64,306.0

December 31, 1970Bilateral official .3,666.4 4,871.7 6,755.6 6,801.9 11,096.9 4,945.6 38,138.1lueiti lateral .1,628.4 1,653.8 4,985.0 888.5 3,012.3 1,536.5 13,704.5PrivateSuppliers .956.7 1,801.9 4,212.2 2,174.9 871.0 973.8 10,990.5Banks . . ..... 292.4 619.8 2.823.9 814.1 146.5 1,402.7 6,099.3Other 783.3 377.8 2,510.1 122.4 12.5 1,490.3 5,296.4Total . .... 7,327.1 9,325.0 21,286.8 10,801.8 15,139.2 10,348.9 74,228.8

December 31, 1971Bilateral official .4304.0 6,070.6 7,254.0 8,050.4 12,097.4 5,915.6 43,692.0Multilateral .1,929.3 2,179.1 5,920.7 1,056.4 3,411.1 1,871.2 16,367.7PrivateSuppliers .1,117.6 2,120.6 4,687.3 2,693.8 882.8 1,043.1 12,545.2Banks . ........ 363.6 706.5 4,312.8 1,194,1 143.9 1,917.6 8,638.5Other. 630.8 415.8 2,759.2 269.8 12.2 1,716.8 5.804.6Total ... 8,345.2 11,492.6 24,934.0 13,264.6 16,547.3 12,464.2 87,048.0

December 31, 1972Bilateral official .4,763.0 7,636.4 8,418.1 9,540.4 12,740.7 6,697.3 49,796.0M ultilateral .2,405.8 2,724.6 7,158.4 1,301.0 3,978.2 2,092.2 19,660.1PrivateSuppliers. 1,173.3 2,042.9 4,761.1 2,686.3 973.7 1,173.7 12,811,0Banks 638.1 1,110.9 6,663.2 1,543.8 118.7 2,321.9 12,396.5Other 574.8 594.1 3,086.6 355.2 9.8 1,943.9 6.564.4Total .9,554.9 14,109.0 30,C87.5 15,426.6 17,821.0 14,229.0 101,228.0

December 31, 1973.Bilateral official .5,923.1 9,220.8 9,641.4 11,271.6 14,094.1 7,326.9 57,477.9Multilateral .3,294.9 3,464.4 8,341.6 1,824.1 4,771.4 2,478.8 24,175.2PrivateSuppliers .1,327.1 2,133.4 4,873.5 2,840.0 1,001.4 1,168.1 13,343.6Baks .1,653.4 1,648.6 10,089.1 3,297.5 117.1 2,720.7 19,526.3Other . ..... ..... 383.5 738.6 3,413.8 396.5 8.7 2,403.7 7,344.8Total .12,582.0 17,205.8 36,359.4 19,629.7 19,992.7 16,098.2 121,867.7

December 31, 1974Bilateral official .7,349.3 10,982.0 11,253.1 12,656.8 16,058.7 8,467.6 66,767.6Multilateral .4,019.4 4,661.6 9,615.3 2,657.5 6,149.4 3,134.5 30,237.6PrivateSuppliers .1,598.8 3,421,1 5,452.0 3.624.0 994.6 1,137.1 16,227.6Banks. 2,640.3 3,584.6 14,308.1 3,484.0 174.3 4,500.2 28,691.5Other. 349.5 1,112.4 4,756.9 369.2 6.7 2,880.3 9,475.0Total .15,957.3 23,761.8 45,385.3 22,791.5 23,383.8 20,119.7 151,399.3

Note: I nformation on the sources, definitions, and interpretation of the data, and a list af the comntries included are given in the "General Notesto Annex Tables." Items may not add to totals due to rounding.

( Does not include publicly guaranteed private debtofbthe P`ilippines estimated at $582.3 millios nas ofthe end of l974.(a, Does not include $600 million disbursed and outstanding as oa the end of 1974 on suppliers' credots with a maturity of zero to five years

ot Arab Republic ot Egypt.in Does not include the following:

ea) Undisbursed portion of the debt of Israel for the years 1967-t970.h r) Non-publicly guaranteed debt of the "social sector" of Yugoslavia contracted after March 31, 1966t

Source: World Bank. 101

External Public Debt Outstanding of 86 Developing Countries,by Country and Type of Creditor, December 31, 1974UIS$ millions

Including undisbursed

RegiDn Disbursed Bilateral Multi-Courtry only Total official lateral Suppliers Banks Other

Africa South of the Sahara-Total 9,314.2 15,957.3 7,349.3 4,019.4 1,598.8 2,640.3 349.5Benin, People's Republic of... 82.4 232.8 178.3 33.8 4.8 14.8 1.1Botswana ................ 129.3 179.0 115.8 60.2 0.2 - 2.7Burundi ................... 8.0 21.3 2.4 11.5 4.5 - 2.8Cameroon ...... ........ 299.8 570.1 263.1 217.9 8.6 80.5 -

Central African Republic ...... 58.1 72.0 47.8 14.6 5.2 2.5 1.9Chad ................. 46.1 71.4 29.6 26.2 7.3 7.1 1.1Congo, People's Republic ofthe . 246.4 499.1 254.7 55.4 176.2 1.1 11.7East African Community ..... 251.0 359.2 100.8 202.9 12.0 - 43.5Ethiopia ................... 284.1 566.0 259.1 273.2 0.9 32.8 -

Gabon ................... 427.4 439.1 84.7 35.2 101.6 169.3 48.3Gambia, The ................ 13.2 22.8 14.5 8.4 - - -

Ghana ................... 606.4 684.4 364.9 117.6 201.9 - -Ivory Coast .................. 736.7 1,213.2 305.0 246.1 289.7 310.0 62.4Kenya .................. 455.8 733.9 402.4 267.1 14.8 19.6 30.0Lesotho ................... 8.5 16.7 1.2 14.5 - 0.4 0.5Liberia ... ........... 168.6 211.6 139.2 48.5 10.9 12.0 1.0Madagascar. ................. 133.0 232.2 98.5 121.4 3.7 4.6 4.0Malawi ................... 223.8 320.6 208.3 88.4 5.5 6.3 12.1Mali . ... . ....... 264.3 335.1 265.2 62.4 7.5 - -

Mauritania .... ...... 145.0 336.1 214.0 47.6 69.8 4.7 -Mauritius ................. 34.4 121.7 77.5 43.2 0.4 - 0.6Niger ................... 85.4 107.8 76.1 25.5 2.7 3.5 -Nigeria ................... 751.7 1,078.5 458.1 579.7 20.4 16.8 3.5Rwanda ................... 13.0 57.1 30.7 23.6 2.0 - 0.8Senegal ..... ....... 239.0 408.1 184.5 99.7 17.0 79.0 28.0Sierra Leone ...... ....... 117.3 146.3 50.8 34.1 58.3 - 3.0Somalia ................... 198.8 377.6 311.7 61.0 - - 4.9Sudan ................... 356.6 1,051.2 418.5 247.3 46.5 338.9 -

Swaziland .................. 39.1 57.8 37.2 18.5 2.1 - -

Tanzania .................. 575.1 1,096.3 768.7 295.6 0.1 13.0 18.9Togo ....... 9........ .. 91.8 190.8 113.6 24.2 15.0 32.9 5.1Uganda .................. 188.9 248.7 155.6 73.9 - 2.5 16.6Upper Volta .............. 46.0 147.1 100.9 45.3 0.9 - -

Zaire ................... 1,309.3 2,562.8 684.5 137.8 450.1 1,271.3 19.1Zambia ................... 679.7 1,188.7 531.4 357.0 58.1 216.5 25.7

East Asia and Pacific-Total 14,145.8 23,761.8 10,982.0 4,661.6 3,421.1 3,584.6 1,112.4China, Republic of ............ 1,139.0 2,607.9 1,133.0 366.1 313.3 454.6 340.9Fiji ..... ... 41.3 66.3 25.0 24.9 1.2 - 15.3Indonesia .................. 5,897.3 8,696.0 5,644.2 900.0 1,280.1 477.4 394.3Korea, Republic of ........... 4,028.7 6,147.3 2,261.6 932.9 1,636.0 1,173.4 143.4Malaysia ................... 873.9 2,189.1 385.6 737.6 16.7 971.0 78.3Philippines .... ...... 1,031.2 2,002.2 699.7 776.6 83.1 394.3 48.5Singapore ................... 476.8 639.0 232.7 237.2 62.6 33.0 73.4South Viet-Nam .............. 144.2 291.5 189.5 37.4 - 46.2 18.4Thailand ................... 513.4 1,122.6 410.8 648.9 28.2 34.7 -

Latin America and theCaribbean-Total 34,571.1 45,385.3 11,253.1 9,615.3 5,452.0 14,308.1 4,756.9Argentina ................... 3,345.0 4,863.7 1,040.5 774.7 1,237.8 1,130.6 680.1Bolivia ................... 708.4 894.6 445.2 138.8 52.9 91.9 165.8Brazil ................... 9,302.9 11,984.3 2,699.7 2,430.4 1,520.4 4,794.9 538.9Chile ................... 3,729.1 4,459.6 2,238.5 315.1 546.6 712.0 647.4Colombia ................... 2,104.2 2,750.3 1,015.1 1,152.1 209.3 272.7 101.1Costa Rica .................. 302.9 478.8 117.2 207.0 31.5 114.3 8.7Dominican Republic .......... 359.1 623.3 311.4 128.0 9.0 173.9 1.1Ecuador ................... 297.4 532.5 146.2 228.7 99.1 40.7 17.8El Salvador .............. 8... 180.6 309.8 59.0 159.8 - 88.4 2.7Guatemala ................... 122.5 209.6 70.5 122.7 5.9 9.1 1.5Guyana ................... 203.4 322.7 189.4 41.4 2.9 32.0 57.1Honduras .................. 154.4 273.9 76.5 185.8 8.0 3.6 -

Jamaica ................... 473.9 650.0 134.4 137.0 25.7 297.9 55.0 102

Table 5

Including undisbursed

Region Disbursed Bilateral Multi-Country only Total official lateral Suppliers Banks Other

Mexico .................. 8,013.8 9,766.2 992.6 2,220.6 335.7 4,205.0 2,012.4Nicaragua .................. 445.7 641.1 168.0 184.9 7.9 184.6 95.7Panama .................. 472.2 644.1 129.2 128.9 24.5 331.7 29.8Paraguay .................. 151.7 309.3 126.0 97.5 41.5 43.8 0.5Peru .................. 2,050.6 2,972.1 735.8 280.4 737.7 1,114.1 104.2Trinidad and Tobago .... .... 171.3 227.5 35.2 93.2 7.0 82.6 9.5Uruguay .................. 514.1 615.6 239.2 142.1 87.0 126.8 20.5Venezuela .................. 1,467.9 1,856.3 283.7 446.1 461.6 457.6 207.3

North Africa andMiddle East-Total 14,181.1 22,791.5 12,656.8 2,657.5 3,624.0 3,484.0 369.2Afghanistan . ........... 771.6 1,596.3 1,515.0 74.9 6.5 -Algeria ........ .......... 3,324.9 6,039.5 1,763.9 190.2 1,863.9 2,067.4 154.1Cyprus ............ ...... 74.7 100.7 11.8 63.9 20.5 4.4 -Egypt, Arab Republic of ...... 1,811.0 3,119.5 2,364.0 277.5 128.1 255.5 94.5iran .................. 5,134.8 6,604.4 3,793.9 935.8 994.3 800.9 79.5Iraq ...... ......... . 407.2 670.0 515.4 135.9 18.8 - -Jordan ............... ... 286.4 546.0 468.1 50.0 17.6 10.2 -Morocco ............. ..... 1,123.8 1,902.1 1,038.2 489.5 171.3 173.2 29.9Syrian Arab Republic ..... _.. 290.7 769.1 309.2 136.7 295.1 28.0 -Tunisia .................. 956.0 1,443.8 877.5 303.0 107.8 144.3 11.3

South Asia-Total 17,466.5 23,383.8 16,058.7 6,149.4 994.6 174.3 6.7Bangladesh ................. 753.7 1,674.9 917.8 500.6 221.6 34.9 -Burma ................. 291.7 455.4 306.2 97.6 51.2 0.4 -India ................. 11,241.6 14,207.5 9,573.5 4,211.2 391.5 29.0 2.2Pakistan ................. 4,634.5 6,230.0 4,751.2 1,198.4 170.5 109.7 0.2Sri Lanka ................. 545.0 816.0 510.0 141.7 159.9 0.2 4.3

More advanced Mediter-ranean countries-Total 15,850.1 20,119.7 8,467.6 3,134.5 1,137.1 4,500.2 2,880.3Greece ............. .... ,026.1 2,733.0 386.5 248.8 222.9 1,709.9 165.0Israel ................. 5,562.1 5,894.8 2,546.0 183.9 190.6 649.5 2,324.8Malta ....... 2........... 6. 9 32.9 27.5 3.1 - 2.3 -

Portugal ................. 598.5 753.3 156.8 42.2 289.4 222.5 42.4Spain . , 2,399.1 2,940.3 851.8 447.1 161.1 1,172.6 307.7Turkey ................. 3,104.7 4,306.2 2,778.9 1,293.5 129.3 87.0 17.5Yugoslavia ............... 2,132.8 3,459.3 1,720.2 915.9 143.9 656.5 22.9GRAND TOTAL ........... 105,528.7 151,399.3 66,767.6 30,237.6 16,227.6 28,691.5 9,475.0

Note: Information on the sources, definitions, and interpretation of the data is given in the "General Notes to Annex Tables." Items may notadd to totals due to rounding.

Source: World Bank.

103

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Table 6

Country 1967 1968 1969 1970 1971 1972 1973 1974

Ecuador ................... ... 6.7 8.6 9.8 9.0 12.3 10.0 7.3 7.3El Salvador . ................ 2.6 2.6 2.8 3.7 5.8 3.1 5.3 4.8Guatemala .......... . . 7.4 7.8 8.0 7.7 8.2 10.6 3.7 3.9Guyana. ............... .. 5.2 6.2 3.6 3.6 3.0 5.6 5.7 4.9Honduras ...... , 2.1 1.7 2.3 2.8 3.2 3.3 3.8 3.7Jamaica ........ ....... .. 2.2 3.3 3.1 3.3 4.1 5.3 5.7 6.9Mexico .24.6 26.5 21.6 25.2 24.1 23.6 25.2 18.4Nicaragua .... ............ 6.4 7.6 10.2 10.6 13.4 10.4 17.8 10.7Panama 21... __ ... ... , 2.8 3.0 3.5 7.6 8.9 10.2 16.1-6 17.0Q6dParaguay ... 4... ._.........7.4 10.1 9.2 11.2 13.8 13.0 10.3 7.8Peru . 1 1 . 1 .............. _..11.1 15.0 11.9 13.9 19.6 18.5 32.2 r) 25.6Trinidad and Tobago. 3 . _. .-.3.0 3.0 3.7 3.7 3.3 3.0 2.9 3.8,6)Uruguay............. . ..... .17.0 20.3 19.7 19.2 23.9 39.6 29.2 21.8Venezuela.1 ........ 9..9 1.9 1.8 2.8 3.5 5.3 5.2 3.2

North Africa and Middle EastAfghanistanr,,7 .. 0.. ... .., 11.2 14.9 19.2 19.8 18.3 15.4 19.5 17.9Algera .. ... ....... . _ . 2.0 2.0 2.7 3.7 6.9 15.0 15.1 14.4Cyprus . _. ... ..... .. . 2.3 2.1 2.1 2.5 2.9 2.2 2.1 2.6Egypt, Arab Republic of . .... 19.4 19.4 24.4 26.2 19.5 31.3 35.0 32.0Iran07),. 5.0 7.2 9.3 11.4 11.5 26.8 15.96) 6.8Iraq ......... ......... 0.8 1.4 2.1 2.2 2.1 3.0 2.9 1.6Jordan .......... .. ...... 1.6 2.2 3.9 4.3 7.8 7.3 6.3 4.9Morocco .. ................ 7.3 7.9 8.6 8.5 11.6 10.8 9.9 6.4Syrian Arab Republic .... 6.6 6.7 10.6 9.5 9.2 8.7 8.4 4.9Tunisia ... . ..... ... .. 20.6 24.0 20.7 19.5 16.8 16.3 12.0 7.2

South Asiae',Burma

t7) ........ . ........ 6.4 9.2 21.9 16.0 14.0 17.2 18.7 14.4

India?7 _ ....... ... . .. 22.5 18.9 21.2 22.3 22.3 21.3 18.0 15.9Pakistanrd 9n .. .... 18.5 21.8 25.7 27.8 26.6 17.4 21.9 15.3Sri Lanka 3.9 6.4 8.5 9.7 10.7 14.0 12.9 11.2

More advancedMediterranean countriesGreece ....... _ _ ... .. 5.7 5.7 7.2 8.5 10.1 9.4 10.0 9.7Israel ... .......... ... 15.7 17.0 17.2 18.6 13.4 17.9 17.7 18.7Malta .................... . 1.3 1.4 1.7 2.0 12.4,6) 0.7 0.5 0.8Portugal . ....... .......... 6.7 5.5 6.1 6.2 5.3 4.3 3.2 2.4Spain . . .... 1.8 2.4 3.1 4.0 5.7 3.5 3.6 2.5Turkey.. 16.4 20.0 18.9 22.5 19.1 201 13.1 12.2Yugoslavia"O . .. ..... 12.6 13.8 9.8 9.6 6.5 6.3 6.9 6.9

Note: Information on the sources, definitiors, and rntrpretafioe of the data is goven in the "Gnereal Notes to Annex Tables.".LoExceot where otherwise indoated, includes all goods and ron-factor services Data for some countries 3re partially estimated.i Beca,rse of special nonetary arrangements oecub3r to countries such as this, the debt-service ratio must be regarded with more than

coca, caubton in rcorsdenng the country's exterral ftin,canl ituatior.(ci Ex art data for exports of goods orly.fri Less theen a.1.CS) Includes one-third of the debt service of the East A'r,c3 Commucmty.

)Seru p-.yments for these years reflect prepaynemts. The service ratios without prepayments would be as follows: Algeria 11.-50 for1974; Iran 12.80 for 1973; Parna3 9.05, and 10.t07 for 1973 and 1974, respectovey: Peru 23.7s aend 19.307 for 1973 and 1974,resaet:eIlye Trinidad and Tobhgo 1.307 or 1974i Zambla 6.707 for 1973.

,) Oaa Fre for fiscot years.3s Excludes Bangladesh.

(i) Deta for Pakist,o through 1974t Ioda Erst Pahkstno. The ratios for 1973 and 1974 reflect debt relied covering arrearsin 1971 and 1972.(0) ExtereeI innhac borrowing decined and Wmo reolaced by nonpublce brroewing beginning 1967.Source: World Bank.

1305

Projected Debt Service on External Public Debt Outstanding, by Region and Type of Creditor, as of December 31, 1974 Table 7WS$ millioots)

Debt out-standioig

(ilcludling Projected dcbt serviceRegion Uoidisbursed)Type of creditor December 31, 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984

Africa South of the SaharaBilateral official .............................. . 7,349.3 359.5 387.1 408.9 428.2 427.9 435.4 417.2 396.6 410.4 397.6Multilateral 4,019.4 156.2 173.2 200.7 220.3 236.8 245.5 248.1 246.8 248.6 246.0PrivateS uitppliers 1,598.8 249.7 251.2 260.9 227.3 198.5 168.2 151.4 117.9 80.4 56.3Banks ... 2,640.3 289.7 371.8 457.3 511.6 469.1 380.2 315.3 280.7 235.3 141.2Other.... 349.5 72.6 58.5 53.6 76.3 35.1 27.7 25.1 23.5 25.4 12.1

Total .o t al. . . 15,957.3 1,127.7 1,241.9 1,381.4 1,463.6 1,367.4 1,257.0 1,157.1 1,065.6 1,000.1 853.1

East Asia and PacificBilateral official 10,982.0 473.5 544.0 538.6 595.2 635.6 673.6 709.7 750.8 770.3 757.1Multilateral 4,661.6 191.6 242.4 298.4 343.6 383.1 406.2 410.0 405.8 397.4 389.1PrivateSuppliers 3,421.1 585.7 524.3 497.6 491.9 431.0 354.8 319.3 268.6 228.5 188.2Banks 3,584.6 424.3 548.3 589.6 544.8 539.5 502.3 385.8 327.3 256.3 221.4Ot her 1,112.4 101.9 98.3 123.1 119.9 131.6 133.6 130.7 126.6 97.1 75.4

Total 23,761.8 1,777.0 1,957.3 2,047.2 2,095.3 2,120.9 2,070.5 1,955.5 1,879.1 1,749.6 1,631.1

Latin America and the CaribbeanBilateral official . . .11,253.1 1,084.3 1,269.1 1,252.1 1,062.3 1,013.5 943.5 857.4 783.4 728.5 605.0Multilateral 9,615.3 683.1 752.5 830.4 897.8 937.0 943.6 939.5 918.7 893.5 861.8PrivateSttppliers 5,452.0 1,148.4 1,010.7 888.6 761.3 666.0 535.4 431.9 353.7 291.8 243.3Banks 14,308.1 2,532.7 2,479.6 2,316.8 2,644.0 2,463.0 2,187.7 1,739.0 1,477.0 1,251.9 853.7Other 4,756.9 881.6 /95.2 798.3 774.3 669.3 574.9 470.5 446.3 362.0 291.7

Total .. ............. 45,385.3 6,335.1 6,307.2 6,086.0 6,139.7 5,748.8 5,185.1 4,438.3 3,979.0 3,527.7 2,855.5

North Africa and Middle EastBilateral official . . . 12,656.8 1,279.8 1,316.3 1,285.7 1,210.3 1,117.3 1,032.4 949.7 863.4 782.6 660.2Mtultilateral ..... . 2,657.5 109.3 129.2 155.2 188.6 214.5 226.8 232.3 235.7 238.9 236.5PrivateSuppliers ........ ....... .. ... 3,624.0 663.5 673.4 645.6 526.5 448.3 375.4 295.2 226.4 157.2 133.8Banks.... 3,484.0 389.1 441.6 492.1 584.0 592.5 573.9 528.2 497.5 408.9 303.2Other .... 369.2 74.0 59.3 55.4 55.5 41.9 38.5 36.2 34.3 31.9 20.5

Total ........ ... 22,791.5 2,515_7 7,619.8 2,634.0 2,565.0 2,414.5 2,247.0 2,041.6 1,857.3 1,619.6 1,354.1

0

0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

South AsiaBilateral official .............................. 16,058.7 983.2 984.8 1,027.5 1,061.4 994.6 1,014.6 1,007.1 911.4 824.8 765.9Multilateral ................................... 6,149.4 172.5 183.0 207.6 215.3 206.5 204.0 181.3 175.7 175.9 196.3PrivateSuppliers .. ................................ 994.6 187.1 195.4 157.6 117.5 99.4 78.0 66.2 58.3 45.9 36.5Banks ........................ .......... 174.3 35.6 34.5 32.3 28.5 22.4 14.4 8.2 8.9 8.0 8.7Other .... .................. ............... 6.1 4.3 0.3 0.3 0.3 0.1 0.1 0.1 0.1 1.2 1.1

Total ..................... ............. 23,383.8 1,382.7 1,398.0 1,425.2 1,423.0 1,322.9 1,311.1 1,263.0 1,154.3 1,055.7 1,008.6

More advanced Mediterranean CountriesBilateral official .................................. 8,467.6 869.7 856.2 797.9 788.1 800.3 743.7 697.8 657.2 588.8 472.2Multilateral .................................. 3,134.5 177.3 205.1 238.4 266.1 290.2 289.9 299.8 301.1 290.4 277.0PrivateSuppliers ................ .................. 1,137.1 248.6 222.2 190.6 167.8 150.0 106.7 74.6 58.8 45.4 39.5Banks ................................... 4,500.2 747.3 876.5 854.2 784.1 751.5 633.3 601.1 398.9 291.3 195.5Other .................. ................ 2,880.3 165.2 184.2 210.9 219.5 293.2 233.3 238.2 320.8 170.2 157.3

Total ................................. 20,119.7 2,208.1 2,344.2 2,292.0 2,225.6 2,285.3 2,006.9 1,911.5 1,736.9 1,386.2 1,141.5

86 developing countriesBilateral official ............................... 66,767.6 5,050.0 5,357.5 5,310.7 5,145.5 4,989.1 4,843.2 4,638.9 4,362.8 4,105.5 3,658.0Multilateral ... ............................... 30,237.6 1,489.9 1,685.5 1,930.6 2,131.7 2,268.0 2,315.9 2,311.1 2,283.8 2,244.7 2,206.7PrivateSuppliers ... ............................ 16,227.6 3,083.0 2,877.2 2,640.8 2,292.3 1,993.3 1,618.6 1,338.6 1,083.7 849.2 697.5Banks .................................. 28,691.5 4,423.7 4,752.4 4,742.3 5,097.1 4,838.2 4,291.8 3,577.6 2,990.3 2,451.7 1,723.8Other ................................... 9,475.0 1,299.5 1,195.8 1,241.6 1,245.7 1,171.3 1,008.1 900.8 951.6 687.8 558.1

Total .. ................................ 151,399.3 15,346.1 15,868.4 15,865.9 15,912.3 15,259.8 14,077.6 12,767.0 11,672.1 10,338.9 8,844.0

Note: Information on the sources, definitions, and interpretation of the data, and a list of the counltries included aregiven in the "Generat Notes to Annex Tables." Items may not add to totals due to rounding.

Source: World Bank.

External Resource Flows and Service Payments Table 8on External Public Debt, by Region, 1967-74COS$ miflinns"

Disbursements Debt service

Regioni Grunts afld Armurti- Nset NetYear Loans grunt-bke Total zatinsi Interest Total flow trurnsfe r

Africa South of the Sahara1967 ....... 545.8 602.3 1,148.1 145.0 93.1 238U 1,003,0 909.91968-- .... 555.1 604.6 1,159.7 207.5 116.4 323.9 952.1 835.71969 ......... 575.6 744.9 1,320.5 226.4 137.9 364.2 1,094.1 956.31970. ,-~... .. 945.6 733.8 1,679.4 265.6 158.2 423.8 1,413.7 1,255.61971 ...... 924.6 861.4 1,786.0 311.0 184.9 495.9 1,475.0 1,29C.11972 ......... 1,347.5 1,206.9 2,554.4 381.2 106.8 578.0 2,173.3 1,976.41973.. ....... 1,975.5 1,174.0 3,149.5 680.0 311.9 991.9 2,469.3 2,157.61974 ......... 2,023.4 1,597.3 3,618.7 532.1 346.2 878.3 3,086.6 2,740.4

East Asia and Pacific1967 ......... 77 5.9 859.0 1,634.9 209.1 55.1 264.2 1,425.8 1,370.71968 ... .... 919.3 885.3 1,804.7 214.7 79.0 293.7 1,590.0 1,510.9,1969 ........ 1,295.4 855.7 2,151.1 287.6 112.7 400.4 1,863,5 1,750,71970 ......... 1,314.8 818.8 2,133.6 457,7 1 76.7 634.4 1,7676.0 1,499.31971. .. , . 1,487.6 906.2 2,293.8 506.3 236.7 743.1 1,787.5 1,550.81972......... 2,341.1 907.6 3,248.6 578.9 287.0 865.8 2,669.8 2,382.81973 .. ... .. 2,335.7 771.7 3,107.4 863.7 385.7 1,249.4 2,243.7 1,858.03974.. ...... 3,390.7 870.3 4,261.0 943.9 5 0.3 1,454.2 3,317.1 2,806.8

Latin America and the Caribbean1967 .... . 2,750.9 370.4 3,121.3 1,341.0 450.2 1,791.2 1,780.3 1,330.11968 ......... 2,831.0 395.5 3,226.5 1,606.8 528.2 2,135.0 1.619.7 1,091.51969. . ... I 3,222.4 476,4 3,698.8 1.612.8 607.1 2,219.8 2,086.1 1,479.01970 ...... .. 3,932.5 449. 1 4,381.6 1,737.6 751.2 2,488.8 2,644.1 1,892.01971.....3,896.2 471.2 4,367.5 1,898.6 844.9 2,743.5 2,468.9 1,624.01972..-.. I 5,600.3 466.3 6,066.6 2,208.6 979.1 3,187.6 3,858.0 2,878.91973 ......... 7,421.9 481.1 7,903.0 3,034.1 1,341.1 4,375.2 4,868.9 3.527.81974 . 10..71.2.7..500.8 711,211.5 3,446.9 1.987.1 5,434.0 7,764.6 5,777.5

North Africa and Middle East1967. ... 825.8 306.7 1,3.4K 303.3 92.4 395.7 829.1 736.71968 .. . ... 1,138.3 329.4 1,467.8 363.7 123.6 4187.3 1,104.1 980.51969......... 1,199.2 358.5 1,557.7 510.5 153.2 663.7 1,047.2 894.01970 ......... 1,802.7 379.1 2,181.8 627.3 198.7 826.0 1,554.5 1,355.81971 ......... 2,004.6 368.0 2,372.6 777.4 249.3 1,0026.7 1,595.3 1,346.01972 ......... 2,264.4 406.8 2,671.~2 1351.8 332.4 1,684.2 1,319.5 987.11973 ..... 4,200.5 426.1 4,626.6 1,648.2 446.7 2,094.8 2,978.4 2,531.71974 ... ... 3.501,6 526.8 4,028.4 2,2 67.5 628.9 2,796.4 1,861.0 1,232.1

South Asia1 967 .... .. 1,658.9 761.6 2,420.4 342.0 214.3 556.-L 2,078.4 1,864.11968,-....... 1,622.3 510.1 2,132.4 356.6 222.0 578.6 1,775.8 1,553.71969 ... .... 1,524.4 353.9 1,678.3 4 27).1 253.8 685.8 1.451.3 1,197.51970. ~....... 1,445.3 346.2 1,793.5 463.4 2795. 742.S 1,328.2 1,048.61971........ 1,696.6 461.5 2,158.2 462.4 291.6 754.0 1,695.6 1,404.01972. 1,279.7 5 1 5.3 1,795.0 529.6 332.4 862.C 1,265.4 933.02973... .. . ..i32.4 569.4 2,301.8 579.6 363.2 942.8 2,722.2 1,359.01.974 ......... 2,543.6 741.3 3,284.9 676.7 363.4 21,040.1 2,608.1 2,244.8

More advanced Mediterranean countries1967 ~-. I... 1,250.1 68.0 1,318.1 487.5 168.4 655.9 830.6 662.21968 ......... 1.479,2 69.3 1,548.3 5 710.7 220. 4 771.1 977.6 7 77.21969 ... ..... 1,392.9 87.8 1,480.7 581,3 240.9 822.2 899.4 658.51970 ......... 1,405.5 103.8 1,509.3 752.8 297.3 1,150.1 756.5 459.21971 ... ... . 2,011. 103.6 2,11'4.7 825.8 .342.7 1,168.5 1,288.9 946.21972.. ..... 2,429.4 23.9 2.533,3 939.6 407.0 1,346.6 1,593.7 2,186.71973 ... ... 2,864.8 195.6 3,060.4 1,1471.9 568.5 1,716.4 1,912.5 1.34401974.. .... 3,649.5 1 61. 4 3.810.9 1.274,4 679.1 1 ,9 53. 5 2,536.5 1,857.4

86 developing countries1967 .... 7,807.3 2,967.8 10,775.1 2,827.9 1,073.6 3,921.5 7.947,2 6,873.61968 ..... ... 8,545.0 2,794.2 11,339.2 3,320~.0 1 269.7 4,589.7 8,019.2 6,749.51969 ....... 9,210.0 2,877.2 12,087.1 3,645.6 1,505.5 5,151.1 8,441.5 6,936.01970 ......... 10,846.4 2,830.9 13,677.3 4,314.4 1,861.7 6,166.0 9,372.9 7,511.21971 ......... 12,120.7 3,071.9 15,092.7 4,781.5 2,1. 50.1i 6,931.6 10,31 1.2 8,161.11972...... 15,252.3 3,616.9 18,869.2 5,989.6 2,534.6 8,524.2 12,879.6 50,345.01973.....20,530.7 3,617.8 24,048.6 7,953.4 3,417.0 11,370.5 16,195.2 12,778.11974 ......... 25,817.6 4,397.7 30,215.3 9,041,4 4,515.0 13,556,5 21,173.9 16,658.9

Nt,se: Infurmation nr tihe sources, definitions, und interpretation of the duta, and a list c: thn countries inc,:uded are giver In the "Generalsotes to Annex Tables." itons mary not add to fotals dun to mauning.

Source: World Buns and DECO.

1038

Average Terms of Loan Commitments and Grant Element of Table 9Loans and Grants, by Region, 1967-74(Anounts in US$ millions)

Loan commitments Grantelement Amouent of

Grant of loans loans usedMaturity Grace Interest element Grants and grants for terms

Region Year Amount (years) :years) %) (% (amount) %> calculatiorn'

Africa South of theSahara 1967 810.2 21.4 5.3 3.1 45 602.3 69 781.1

1968 893.1 22.3 5.0 3.6 41 604.6 65 879.31969 830.8 24.2 6.4 3.6 44 744.9 71 830.81970 1,776.0 26.0 6.6 3.5 48 733.7 63 1,773.91971 1,232.1 22.2 6.3 4.0 42 861.4 66 1,232.11972 1,756.8 23.2 6.5 3.9 44 1,206.9 67 1,756.81973 3,523.6 21.5 5.9 4.9 37 1,174.0 53 3,521.31974 3,594.3 20.6 5.8 5.0 35 1.597.3 55 3,566.3

East Asia and Pacific.. 1967 1,147.5 14.0 3.9 4.4 29 859.0 59 1,147.51968 1,335.8 19.4 5.5 3.6 40 885.3 64 1,335.61969 1,871.7 19.4 5.3 4.4 34 855.7 55 1,871,71970 1,666.5 21.7 5.6 4.7 35 818.8 57 1,666.51971 2,315.8 21.2 5.8 4.5 36 806.2 52 2,315.11972 3,208.6 20.2 5.7 5.1 32 907.6 47 3,208.61973 3,532.0 21.8 6.0 5.4 33 771.7 45 3,532.01974 7,373.1 16.6 5.3 6.1 25 870.3 33 7,317.2

Latin America and theCaribbean........ .... 1967 3,530.9 14.1 3.4 5.4 23 370.4 31 3,400.6

1968 3,604.4 15.4 3.4 5.5 24 395.5 31 3,575,61969 3,484.7 13.8 3.6 6.1 21 476.9 30 3,468.81970 4,513.0 14.5 3. 6.4 20 449.1 27 4,479.51971 5,281.8 13.4 3.5 6.5 18 471.2 25 5,258,51972 7,426.8 13.2 3.4 6.6 17 466.3 22 7,284.71973 8,899.1 13.8 4.2 8.1 11 481.1 16 8,763.71974 11,966.3 12.8 3.7 7.9 12 500.8 15 11,953.9

North Africa andMiddle East ...... ... 1967 1,356.7 13.6 3.5 3.9 31 306.7 44 1,355.8

1968 1,203.3 14.2 3.0 3.8 31 329.4 46 1,203.31969 1,886.4 13.5 3.0 4.8 26 358.5 38 1,886.41970 2,216.6 12.9 3.0 5.0 24 379.1 35 2,216.61971 2,670.5 12.0 3.4 4.5 27 368.0 36 2,670.51972 3,310.3 13.7 3.3 4.6 27 406.8 27 3,166.81973 5,656.8 14.7 4.4 5.8 22 426.1 27 5,656.81974 4,297.8 17.0 3.9 5.4 27 526.8 35 4,177.8

South Asia.. 1967 1,312.6 27.8 6.9 2.5 56 761.6 72 1,310.91968 1,721.6 29.8 7.2 2.9 54 510.1 64 1,720.51969 1,425.3 30.4 7.2 2.6 56 353.9 65 1,421.01970 2,020.9 32.8 9.7 2.4 61 346.2 67 1,943.01971 1,492.7 34.6 7.9 2.5 60 461.5 70 1,480.21972 1,681.7 32.6 7.7 1.9 63 515.3 72 1,681.31973 2,556.5 33.0 7.8 2.1 62 569.4 69 2,492.31974 4.148.2 28.1 7.2 2.4 55 741.3 62 4,092.4

More advanced Mediter-ranean countries ... 1967 1,929.9 17.5 5.9 4.1 37 68.0 39 1,929.9

1968 1.240.0 15.4 6.1 5.0 29 69.3 33 1,240.01969 2.463.0 18.9 3.0 4.8 31 87.8 33 2,463.01970 1,595.2 13.9 4.2 5.7 23 103.8 28 1,595.21971 2,585.4 16.6 4.8 5.6 26 103.6 29 2,585.41972 2,806.8 16.5 5.1 5.3 27 113.9 30 2,806.81973 2,685.2 17.3 6.5 6.0 27 195.6 32 2,685.21974 4,880.0 15.4 4.9 7.5 17 161.4 20 4,880.0

86 developingcountries .... ..... . 1967 10,087.8 17.1 4.6 4.3 34 2,968.0 49 9,925.8

1968 9,998.2 19.0 4.8 4.4 34 2,794.2 49 9,954.31969 11,961.9 18.4 4.3 4.8 32 2,877.7 45 11,941.71970 13,788.2 19.1 5.0 4.9 32 2,830.7 44 14,664.91971 15,578.3 17.6 4.7 5.1 29 3,071.9 41 15.568.81972 20,191.0 17.5 4.7 5.3 29 3,616.8 40 20,105.01973 26,853.2 18.2 5.3 6.1 26 3,617.9 35 26,651.31974 36,259.7 16.9 4.8 6.3 24 4,397.7 32 35,987.6

NDte: Information on the sources, definitions, and interPretation of the data. and a list of the countries included are given in the "General Notes to AnnexTables."

"3 This column shows the amount of loans for which repaymentterms are known. 109Source: World Bank and OECD.

Foreign and International Bond Issues, by Market and Country of Borrower Entity, 1973-75, First Half 1976(1) Table 10(US$ millions)

Years and roarkets

197 3 19/4 1975 First hralt 1916 (Pj

North North North NorthArrrericarr Avrericair Arnerical Americars

allId Iriler- and Iriter- arid Irnter- arid Inlter-other Lu Fopeanr rational other Eli rpetia nii atiornal iother Lo ropeari natiornS I other Eu ropseari iational

Borrowinrig coin or ies tiarkrets ia rkrets rflarkets Total era rhets rnarhets tria rkets Total mu irkets rioiarkets iria rkets total iia rkets mrarkrets marakets Total

Industrialized countriesEuropeAustria.... ...... 89.4 87.3 176.7 127 232.6 250.5 495.8 50.0 248.5 559.5 858.0 - 107.6 123.9 231.5Belgium,- 39.4 75.0 114.4 - 25.6 - 25.6 -- 18.2 - 18.2 - 19.2 - 19.2Dlerimark. 61.0 99.2 160.2 - 47.2 77.8 125.0 92,8 119.7 212.5 - 176.6 113.4 290.0Finland. ........ .... 35.0 30.2 82.7 147.9 57.8 8.1 15.0 80.9 33.6 86.5 254.9 375.0 - 80.8 109.9 190.7France.- 103.0 103.0 291.8 48.8 333.4 674,0 235.0 356.6 1,258.1 1,849.7 300.0 439.1 802.9 1,542.0Germanly, Federal Reprlblic of .... - 31.2 25.0 56.2 - 136.3 --- 136.3 - 139.4 86.9 226.3 - 141.3 49.5 190.8lcelandl . ... ..- 5.0 14.5 19.5 9.0 - 14.5 23.5 - - 25.1 25.1 - - 33.9 33.9IrelandI.......- 101.9 29.8 137.7 - 56.7 7 7.0 133.7 - - 34.4 34.4 - - 384 38.4Italy. ....... .... - - 25.3 25.3 - 50.0 50.0 - 43.5 17.0 60.5 - - 60.0 60.0Liechtentstein ... ...... 9.8 - 9.8 18.7 - 18.7 - -

Loixertibourg. - - 65.4 65.4A - - - - ------

Netherlands. -159.6 159.6 30.0 97.7 350.4 478.1 - 240.0 438.3 678.3 - 40.2 166.2 206.4Norway .... 57.0 53.4 105.4 - 34.3 49.2 83.5 200.0 199.4 528.2 927.6 108.0 155.6 490.6 754.2Sweden. .-... 55.5 89.3 144.8 50,0 37.7 37/.0 124.7 40.0 397.7 559.3 997.0 - 388.7 140.8 529.5Switzerlaid ........ - -- - - 11.6 11.6 20.0 11.5 136.4 1 67.9 - -. 1 36.2 136.2United Kingdom. ... .. 325.0 988,0 1,313.0 155.2 7.0 142.9 305.1 300.0 40.4 3/3.8 714.2 250.0 99.7 385.0 734.7MulItinatiotnal corporatiiro 2, - 60.3 34.5 94.8 22.0 - - 22.0 - 64.9 57.7 122.6 - 233.5 5/.3 290.8Subtotal. ~ ... 35.0 856.9 1,932.0 2,823.9 628,5 741.8 1,409.3 2,7/9.6 878.6 1,958.1 4,449.3 7,286.0 658.0 1,882.3 2,708.0 5,248.3

OthersAtistralia. . . ... - - -~ - 16.8 130.4 147.2 265.0 61.8 361.3 688.1 15.0 39.0 121.9 175.9Cartada.... 924.7 82.7 207,5 1,209.9 1,933A4 29.2 439.5 2,402.1 3,104.6 277.1 1,145.1 4,526.8 3,253.9 90.9 2,025.3 5,326.5Japan .... - 13.8 35.0 48.8 30.0 65.0 153.5 248.5 110.0 370.3 1,145.5 1,625.8 280.0 293.8 792.1 1,365.9New Zealand .......- - 33.2 33.2 33.0 79.3 408.1 520.4 5.0 100.5 89.1 194.6South Africd ... 32.6 138,0 170.6 - 50.0 50.0 - 87.7 305.2 392.9 - 39.4 25.0 64.4Uniited States ... 45.4 452.9 819.6 1,317.9 . 4.5 105.0 189.5 100.0 42.2 314.0 456.2 - - 185.0 585.0Stthtotal. . 970.1 582.0 1,195.1 2,747.2 1,963.4 228.7 878.4 3,070.5 3,612.6 918.4 3,679.2 8,210.2 3,513.9 563.6 3,234.4 7,311.9Total ... 1005.1I 1 ,43 8.9 3-,127.1 -5,571.1 -2,591.9 "97 0.5 -2,287-.7 -5,850.1 -4 ,491.2 -2,87 6. 5- 8,128.5 1-5,49-6.2 -4,17-1.9 -2,44 5.9 5-,942.4 1-2,560.2

Multilateral EuropeaninstitutionsCoLInCil of Europe .... 25.7 - 25.7 -- 8.3 - 8.3 - - 28.8 28.8 - - 42.9 42.9El-rofimnata .. 56.7 29.9 86.6 10.0 29.5 37.1 76.6 50.0 60.8 73.3 184.1 - 55.4 68.4 123.8Etlropeail Coal and Stool Commiunity - 161.4 83.1 244.5 100.0 33.4 568.7 701.6 275.0 291.9 263.6 830.5 175.0 116.7 259.4 551.1European Ecotonomic Commuritnity. - - - - - - - - - - - - - - 995.3 995.3Euiropean Investmier,it Bank. - 286.! 321.7 608.4 - 49.3 970.7 1,020.0 75.0 298.8 383.2 757.0 100.0 38.9 66.7 205.6l ntorf rigo( 1. - -. - - - - 18.4 - 18.4 -- - - -

Total.... . - 530.5 434.7 965.2 110.0 120.5 1,576.0 1,806.5 400.0 669.9 748.9 1,818.8 275.0 711.0 1,432.7 1,918.7

International developmentinstitutionsAndean Development Corporation - .- -- 23.3 -23.3---

Asiani Development Bank ... 1 0,5 20.0 30.5 44.0 - 44.0 191.1 22.1 89.0 302.8 181.1 - 96.6 277.7

Central Arnerican Bankfor Economiic liitegration i- 10.0 - - 10.0 10.0 - .- 10.0 - - - -

linter-American Developmenit Bank 10.3 58.8 53.4 123.5 60.0 5.7 40,2 105.9 250.7 58.8 55.6 365.1 156.7 68.9 33.7 259.3

International Bank forRecoeistrtiction anid Development 908.1 584.0 410.0 1,902.1 2,262.9 292.7 457.7 3,513.3 1,509.3 847.8 590.0 2,947.1 964.9 503.4 660.7 2,129.0

Total 919.4 653.3 483.4 2,056.1 2,876.9 298.4 497.9 3,673.2 1,985.0 928.7 734.6- 3,648.3 1,302.7 572.3 791.0 2,666.0

Developing countriesAlgeria... 50.7 - 20.0 70.7 59.7 59.7 - - 35.0 35.0- 99.1 99.1Argentina, ...... - - - - - 16.0 - - 16.0 - -

Brazil . 35.7 - 25.0 60.7 - - 25.0 25.0 35.0 - - 35.0 - 76.9 76.9

Chile- - - -- -- 53.4 - - 53.4 - - -

China,Republicot. - - - - 20.0 - - 20.0 .- - - - . ..

ColomTbia ... 45.0 45.0 - - - - - --- --

Egypt, Arab Republic oft- 53.0 53.0 - -- ----- -

Gabon . ....- -- - ---- 15.0 15.0-- -

GreeCe, -15.0 15.0 - - --- ----

Guiinea . .- - 00 30.0 - - --- - ---

[long Ktong,.- 26.5 50.0 76. - - 50.0 50.0 - - 24.5 24.5 - -

Huingary. . .. . -- - - 40.0 40.0 - - 98.8 98.8 - ~ - 25.0 25.0

India.. - 2.5 7. - - -- - - - - - - -

lndonesia .... . - - .... . 17.5 - -. 17.5 --

Iran. - - 20.7 20.7 . - -- - - - - - 30.0 30.0

Israel .... 468.2 ..- 468. 559.7 - 559.7 242.8 - 2.5 245.3 60.8 -- 60.8

Ivory Coast.. 8.7 - 8.7 - - - --.~ ... - ..

Jamaica . ..... 14.0 14.0 - - - - - --- -

Korea,RepLiblicof ......- - 19.0 - 19.0 - - - - ----

Lebanon.- - - -.. - - - - 4.8 4.8-- -

Malaysia.. 17.1 17.1 - - -- - - - - - - 3.4 3.4

Mexico.e 116.4 . 61.0 177.4 50.0 - 50.0 173.5 23.2 87.0 283.7 33.6 35.3 139.5 208.4

Morocco. ..- -. - - - - - - - 28.3 28.3 - - 10.2 10.2

N ica ragLI a. .. - - 10.0 10.0 5.0 - 5.0 - .- - - .- , - - -

Omian .. ....- - 25.0 25.0 -- - - ---- ---

Panama.. .. - - - - 9.0 - - 9.0 -

Papua New Guinlea .17.9 - 17.2 35,.1 - 16.7 - 16.7 - - 25.0 25.0--Phiilippines . . .. - - - - - 17.2 17.2 - - - -----

e1 iclad(es both public efferi ngs a iii yr vote placeernets. *iSociet rumpinpeine pour le FinanlCerent de Materiel Ferroviaire. I COtitiftlrCl)

i ncludes ttie tollowineg curporatinirs. AMein I rivestrnlent Co , 5. A. I ntermrselle Finranrce, S. A., SncpWt Fer roviaire, I riternationale rie TranSrOprts FrienorijiuUs.irne.Stay-Firiairz S.A., Scandfiiaviari Airlines Systerri (SAS., Shell lliternational Finiance N .V P , Preliminary.

Siicit6 FinanciAre Furop6minie 5SFE , Socb5tte I nternrationaln poor le ITranisport par Trariscoritaineiesintrerconrtainer', Trans-Atistria Gaslirie tiriance Oo FLtd , Trannn-Foropeina Natural Gas PipelineFinance Gon., Ltud.

Foreign and International Bond Issues by Market and Country of Borrower Entity, 1973-75, First Half 19 7 6(l)(coritirroed) Table 10(US$ millions)

Years arid miarkets

197 3 1974 1975 First halt 19ie (P

North North North NorthAmericani Armerican Aiereicaoi American

naan lirter - and Ioter- airr I lter - arid tonter-other Eoropeani rational other [oropean natoioial othe r Eoropeain national other Eu ropear r iatiorral

Borrowing countries airakets miarkets markets rirtal mnarkets markets mrarkets Total mrarkets rararkets mnarkets Total markets rriarksnts markets T'otal

Developing Countries (corntinured,Poland. .-.. -.. .. -.. -.. -.. -- - 47.0 47.0Portugal . .... .... .- - 72 17.2 -- -- - - - - -

Romania ....... . . . . .-. .-. 100.0 100.0 - - - -Singapore . . - - 30.0 30.0 - - - - -- 12.0 1 2.0 - - 19.2 1 9.2Spain. ........................... 1 6.6 - 1 1.0 87.6 2 5.4 - - 25.4 I - 117. 1 1 17. 1 - 16.1 38.8 54.9Sudan.......... ............. 23.7 - - 23.7 - - - - 8.6 8.6 - - - -Trinidad andlTobago .... .. - - - - ... 4.0 4.0 - -.- - - - -Turkey ...........-.................--- 27.3 27.3Venezuela....... .......-.. 7.5 7.5 1.9 - 1.9 - ..-.. -

Yuigoslavia ...... ..-..... 30.0 30.0 51.5 - - 51.5 - . 37.3 37.3Zaire, - -........ .... 13.0 13.0 - - - ...-

Total. ...-..... .... 729.2 37.7 554.5 1,321.4 801.2 16.7 153.4 __971.3 538.2 23.2 558.6 1,120.0 94.4 51.4 553.7 699.5

Recapitulationlindustrialized countries..... 1,005.1 5,438.9 3,127.1 5,575.5 2,591.9 970.5 2,287.7 5,850.5 4,491.2 2,836.5 8,528.5 15,496.2 4,131.9 2,445.9 5,942.4 12,560.2Multilateral European institutions. . 530.5 434.7 965.2 110.0 120. 1,576.0 1,806.5 400.0 669.9 748.9 1,818.8 275.0 211.0 1,432.7 1,918.7Total ... ........ 1,005.1 1,969.4 3,561.8 6,536.3 2,701.9 1,091.0 3,863.7 7,656.6 4,891.2 3,546.4 8,877.4 17,31 5.0 4,446.9 2,656.9 7,375.1 14,478.9

Inierrtationlal developmentinstitutions....... ...... 919.4 653.3 483.4 2,056.1 2,876.9 298.4 497.9 3,673.2 1,985.0 928.7 734.6 3,648.3 1,302.7 572.3 791.0 2,666.0

Developing countries ........ 729.2 37.7 554.5 1,321.4 801.2 16.7 153.4 971.3 538.2 23.2 558.6 1,1 20.0 94.4 51.4 553.7 699.5Total ......... .... 1,648.6 691.0 1,037.9 3,377.5 3,678.1 315.1 651.3 4,644.5 2,523.2 951.9 1,293.2 4,768.3 1,397.5 623.7 1,344.7 3,365.5

GRAND TOTAL .7.,653.7 2,660.4 4,599.7 9,913.8 6,380.0 1,406.1 4,515.0 12,301.1 7,414.4 4,498.3 10,170.6 22,083.3 5,844.0 3,280.6 8,219.8 17,844.4

71~ncld odeshotrpblic offenringos and private placernierils5.(P) Preliminary.Soorce: World Banik.

Average Issue Yield of New Publisly Offered Foreign and International Bonds, 1973-75, First Half 1976 - Table 11(Percentages)

Issued in North American and other markets by Issued in Europeani markets by Issued in interniationial markets by

Other inter- Other iriter- Other Other inter- Othernational national oldus- nationtal indus-

World development World development U.S. trialized Developing World development U.S. trialized DevelopingYear Bank institotioirs Canada Others Banik institutions corporations countries countries Bank iristitutions corporatiotis countries countries

Year 3~~~~~~~~~~~~~~~~1 2)3 )() )(~~) (2

1973First quarter ............. .... 7.10 - - - 6.89 - 6.73 6.44 - - - 5.57 6.96 7.67Second quarter .............. . - - 7.90 - 6.28 6.00 6.00 6.14 - - - 8.18 7.54 7.30Third quarter ............... . 7.56 - 8.44 7.93 - - 5.99 6.46 - - - 1.24 8.20 7.75Fourth quarter ............... . 7.25 - 8.23 8.32 7.25 - 6.50 7.37 8.00 - - 6.77 8.62 7.63

1974First quarter ....... ........ 7.36 7.36 8.67 - 7.00 - - 7.38 7.47 - - 9.38 8.67 7.14Second quarter ............... . - 7.50 9.23 - - - 7.75 8.26 - - - 9.55 8.88 8.00Third quarter ........ ......... . - - 10.69 - - - - 8.04 - - - 11.60 9.96 -

Fourth quarter ........... . 8.02 - 10.04 9.17 - - 8.47 8.92 - - - - 10.12 10.69

1975First quarter ..... . . .. -... . 8.25 9.71 9.00 - - - 8.55 - - - - 9.29 9.37Second quarter ............... . - 8.75 9.47 8.75 8.25 - 7.75 8.23 - - - 9.85 9.14 9.06Third quarter a rte r .. 8.42 - 9.93 9.24 - 8.03 - 8.24 - - - 9.75 9.14 8.96Fourth quarter ................ . 8.85 - 9.67 8.92 8.00 - - 8.24 - - - 9.97 9.17 -

1976 (P)First quarter ..... . ....... - 8.67 9.20 8.84 8.00 - - 7.65 - - 8.00 9.65 8.64 9.22Second quarter ...... ... 8.41 - 9.27 8.74 7.25 7.00 - 6.73 - 7.50 - 9.25 8.50 9.19

(2) Issues by the Andean Development Corporation, the Asiant Development Bank, the Central American Bank for Ecorionic Integration, and the Inter-American Development Barik.21) Issues by governments, public, and private corporations.(3) Issues by governments, public, and private corporations. and rriultlateral European institutoris.(P) Prelininary,Source: World Bank.

-w

I

iI

II

Bank Appendices

Page

A Balance Sheet .......................................... 116

B Statement of Income and Expenses .................................... 118

Statement of Accumulated Net Income . ................... 118

Statement of Changes in General Reserve . ................. 118

C Statement of Changes in Financial Position . .................. 119

D Summary Statement of Loans ........................ 120

£ Summary Statement of Borrowings .................................... 123

F Statement of Subscriptions to Capital Stock and Voting Power . ....... . 124

G Notes to Financial Statements ......................................... 126

REPORT OF INDEPENDENT ACCOUNTANTS ....................... ....... 128

H Statement of Loans Approved during the Fiscal Year 1975/76 .. .......... 129

115

Balance Sheet

June 30, 1976 and June 30, 1975

Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

Assets 1976 1975

DUE FROM BANKSUnrestricted currencies (including interest-bearing demand deposits

$18,511-1976, $17,369-1975) .................................... $ 122,901 $ 85,4923Currencies subject to restrictions-Note B ...................... .... 67,952 67,783

$ 190,853 153,206

INVESTMENTS-Note CObligations of governments and their instrumentalities (at cost or amortized

cost; face amount $3,551,055-1976, $2,231,013-1975) ..... $ 3,484,292 2,197,938Certificates of deposit and other time deposits (at cost or amortized cost;face amount $2,495,731-1976, $2,592,572-1975) ........... 2,495,001 2,592,674

5,979,293 4,790,612

RECEIVABLE ON ACCOUNT OF SUBSCRIBED CAPITAL-subject torestrictions-Note BNon-negotiable, non-interest-bearing demand obligations ......... $ 347,119 382,626Amounts required to maintain value of currency holdings ............ 8,281 10,847

355,400 393,473

RECEIVABLES-OTHERSales of investment securities ............... ........................... $ 4,188 6,401Purchasers, on account of effective loans agreed to be sold (includingundisbursed balance $23,759-1976, $24,215-1975) . .32,631 32,011

Accrued income on loans ........ ................ 246,876 211,336Accrued interest on investments ... ............... 50,377 75,738

334,072 325,486

LOANS (see Appendix D) .... ................. ................... $26,091,214 22,322,491Less-Loans approved but not yet effective .3,350,435 2,459,208

Effective loans (including undisbursed balance $9,214,015-1976,$7,674,979-1975) ........................... .......................... 22,740,779 19,863,283

OTHER ASSETSLand and buildings-Less accumulated depreciation ($9,612-1976,$8,416-1975) .$ 56,447 57,644

Unamortized issuance costs of borrowings ................................. 63,745 45,729Translation adjustments on capital subscriptions-Note B 269,910 87,775Miscellaneous ......... .... ... . ............................ 26,507 16,080

416,609 207,228

SPECIAL RESERVE FUND ASSETS-Note DInvestment securities-obligations of United States Government and its

Instrumentalities (at cost or amortized cost; face amount $292,260-1976,$288,107-1975) ......... ........... ....................... 292,538 292,538

$30,309,544 $26,025,826

116

Appendix AInternational Bank for

Reconstruction and Development

Liabilities, Capital and Reserves 1976 1975

LIABI LITIESAccrued charges on borrowings ............................... ......... $ 353,627 $ 293,697Amounts required to maintain value of currency holdings-Note B ........ 11,831 20,149Accounts payable and other liabilities ..................................... 27,332 23,413Payable for investment securities purchased ............................... 262,819 774Due to the International Development Association-Note E.................. 558,443 454,433Undisbursed balance of effective loans (see Appendix D)Held by Bank ......................................... ........... $ 9,214,015 7,674,979Agreed to be sold ..... ..... ........................................ 23,759 24,215

9,237,774 7,699,194Borrowings (see Appendix E) ............................................ $15,443,824 12,542,831Less-Receivable under contracts ....................................... 797,162 255,868Principal outstanding .......... ............ ........................ $14,646,662 12,286,963Less-Net unamortized discounts and premiums ................ ......... 10,942 11,942

14,635,720 12,275,021

CAPITAL AND RESERVESCapital stock (see Appendix F)-Note BAuthorized capital ($27,000,000-United States dollars of 1944)Subscribed capital (United States dollars of 1944 $25,581,800-1976,$25,548,900-1975) .................................................. $30,860,568 30,820,879Less-Uncalled portion of subscriptions (United States dollars of 1944$23,023,620-1976, $22,994,010-1975) ............... ............ . 27,774,511 27,738,791

3,086,057 3,082,088

Payments on account of pending subscriptions (see Appendix F). 35 224

Special reserve-Note D .. ...... ........ 2..................... 292,538 292,538

General reserve (see Appendix B)-Note D 1,623,515 1,609,324

-Accumulated net income (see Appendix B) ........ ....................... 219,853 274,971

$30,309,544 $26,025,826

117

Statement of Income and Expenses Appendix BInternational Bank for

Reconstruction and Development

For the fiscal years ended June 30, 1976 and June 30, 1975Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

July 1-June 30

1975/76 1974/75

Income

Income from loans('):

Interest and commissions ................................................................... $ 825,191 $ 709,749Commitment charges ....................................................................... 71,336 55,913

Income from investmentst2) . .0 . ..................................................... 424,892 382,712Other income(3) ....................................................................... 8,228 9,093

TOTALINCOME ........... ....................................................... $1,329,647 $1,157,467Less-Amount equivalent to commissions appropriated to Special Reserve-Note D ............. 9

Total Income Less Reserve Deduction ... .................................. $1,329,647 $1,157,458

Expenses

Interest on borrowings ...................................................... 8............ 977,298 $ 764,988Administrative expenses(4) ..................................................................... 122,282 109,937Bond issuance and other financial expenses .... ................................................. 9,950 7,562Discount on sales of loans ................. .................. 264 -

TOTAL EXPENSES .............................. ............................... $1,109,794 $ 882,487

Net Income -Note A ................ .... . ....................................... $ 219,853 $ 274,971

(') A principal instalment of $8,000 and interest and other charges of $289,000 payable to the Bank on loans are overdue by more than 60 days. The principal dis-bursed and outstanding on these loans amounts to $7.415,000. It is not anticipated that these delays will result in any loss to the Bank.Of these loans on which amounts are overdue, $5.391,000 relates to a loan to Lebanon. The Bank has made three loans to Lebanon on which a total of $13,685,000is disbursed and outstanding.

(OC Includes net capital gains of $41,457,000 ($5,194,000-1975) resulting from sales of investments. The rate of return earned on the average investments held duringthe year, including capital gains and losses, was 7.35, (8.4%-T1975).

(3. Includes net capital gains of $8,050,000 ($8,953,000-1975) resulting from repurchases of obligations of the Bank prior to maturity pursuant to the terms of therespective borrowing agreements.

a: The administrative expenses shown are net of the management fee of $62,770,000 ($47,602,000-1975) charged to the International Development Associationand of the service and support fee of $1,485,000 ($1,455,000-1975) charged to the International Finance Corporation.

Statement of Accumulated Net IncomeFor the fiscal years ended June 30, 1976 and June 30, 1975Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

July 0-June 301975/76 1974/75

Accumulated net income at beginning of fiscal year .................... .................... $ 274,971 $ 215,765Allocation to General Reserve .................................................................. (164,971) (115,765)Transfer to the International Development Association ..................................... (110,000) (100,000)Net income of current fiscal year ................................................................ 219,853 274,971

Accumulated net income at end of fiscal year ........ .................................... $ 219,853 $ 274,971

Statement of Changes in General ReserveFor the fiscal years ended June 30, 1976 and June 30, 1975Expressed in United States dollars (in thousandso-see Notes to Financial Statements, Appendix G

July 1-June 301975/76 . 1974,75

Balance at beginning of fiscal year ............................................................... $1,609,324 $1,479,650Allocation of portion of accumulated net income ................. ................................. 164,971 115,765Translation adjustments as a result of currency depreciations and appreciations duringfiscal year-Note D (150,780) 13,909

Balance at end of fiscal year ............... .................................................... $1,623,515 $1,609,324

1 1 8

Statement of Changes in Financial Position Appendix CInternational Bank for

Reconstruction and Development

For the fiscal years ended June 30, 1976 and June 30, 1975Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

July I-June 30

1975/76 1974/75

Funds ProvidedOperations:Net income (see Appendix B) ................................................................. $ 219,853 $ 274,971Items not requiring or providing cash:Accruals of income on loans and investments ......................... (10,178) (31,151)Accruals of charges on borrowings and administrative expenses .. 62,057 59,007Depreciation ..................................................................... 1,428 1,379Amortization of discounts, premiums and bond issuance expenses ............... 10,215 7,935

Cash provided by operations ................................................................. $ 283,375 $ 312,141Borrowings(see Appendix E) .................................................................. 3,921,486 3,387,192Repayments of loans to the Bank .................................................. ........... 609,294 568,659Adjustment of loans outstanding as a result of currency depreciations and appreciations . ...... 543,057 (194,723)Sales of loans .............................................. ....................... 43,514 47,734Increase (decrease) in amounts payable for investment securities traded ............. .. ............ 262,045 (353,493)Decrease in amounts receivable for investment securities traded ................. 2,213 115,332Capital subscriptions and maintenance of value adjustments .. 33,556 55,682Other .................................................................... 1,604 8,294

TOTAL FUNDS PROVIDED ........................... ................................ $5,700,144 $3,946,818

Funds UsedDisbursements on loans .............. ......... $2,535,401 $2,096,260Retirement of borrowings (see Appendix E) ...................................................... 1,277,518 1,026,683Adjustment of borrowings as a result of currency depreciations and appreciations (see Appendix E) ... 284,269 (276,449)Translation adjustmentsas a resultof currency depreciations and appreciations duringfiscal year-Note D 150,780 (13,909)Payments on transfers to the International Development Association ................................ 5,990 3,549Other ..................................................................... 220,027 17,938

TOTAL FUNDS USED ........................................................... .... $4,473,985 $2,854,072

Increase in Unrestricted Currencies and Investments ................................. $1,226,159 $1,092,746

119

Summary Statement of LoansJune 30, 1976 and June 30, 1975Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

June 30, 1976

Effective loans held by Bank Loans Percent ofapproved total etfective

Disbursed Undisbursed but not yet and non-Members iiable as borrower or guarantor(') portion portion(') Totai effective(') effective loans

Algeria ........................... $ 61,129 $ 260,904 $ 322,033 $ 57,500 1.46Argentina ........................... 375,403 50,731 426,134 - 1.64Australia. .......................... 114,097 8,541 122,638 - .47Austria ........................... 34,590 - 34,590 - .13Bahamas, Barbados, Grenada, Guyana,Jamaica, Trinidad and Tobago, andUnited Kingdom(4).. .............. . - 20,000 20,000 - .08

Bangladesh ........................... 53,294 - 53,294 - .21Belgium .... ..................... 1,027 - 1,027 - .01Bolivia(5) .... ..........

28,728 20,644 49,372 44,500 .36

Botswana ........................... 34,624 12,057 46,681 10,500 .22Brazil ........................... 1,206,033 958,133 2,164,166 360,435 9.72Burma . ... ............... ........... . 2,210 - 2,210 - .01Cameroon ........................... 55,359 42,571 97,930 19,300 .45Chile . . 152,158 49,415 201,573 - .78China ........................... 253,355 5,029 258,384 - 1.00Colombia .................. 706,967 224,883 931,850 80,000 3.90

Congo, People's Republic of the ......... 27,780 - 27,780 38,000 .25Costa Rica ... ..... ................. 99,385 67,020 166,405 39,000 .79Cyprus ...................... 39,435 20,729 60,164 6,000 .25Denmark ..... ... 15,689 - 15,689 - .06Dominican Republic ..... ............ 22,322 27,726 50,048 - .19

Ecuador ... .................. 45,191 34,426 79,617 51,000 .50Egypt, Arab Republic of ............ .... 23.080 138,054 161,134 156,800 1.22El Salvador ..... ....... 47,494 29,965 77,459 39,000 .45Ethiopia ........................... 80,097 3,665 83,762 - .32Fiji ........................... 15,814 6,880 22,694 12,000 .13

Finland ..... _ ........... ...... 96,125 20,000 116,125 - .45Gabon ............. 22,129 8,422 30,551 - .12Ghana . ....... 41,196 64,405 105,601 24,500 .50Ghana, Ivory Coast and Togo(6) ..... - - - 49,500 .19Greece ........................... 71,023 138,105 209,128 69,900 1.08

Guatemala ........................... 44,730 30,304 75,034 14,500 .34Guinea ............ ....... .......... 81,087 - 81,087 - .31Guyana ................... 16,815 22,367 39,182 - .15Honduras. ........ .............. 68,401 48,763 117,164 - .45Iceland ............................. 36,956 3,880 40,836 - .16

India .................... 464,372 265,993 730,365 210,000 3.62Indonesia ................... ........ 135,064 363,455 498,519 399,000 3.46Iran ........................... .. 607,377 309,589 916,966 - 3.53Iraq ............... . ....... 43,946 94,192 138,138 - .53Ireland ........................... 76,860 67,873 144,733 - .56

Israel ...... .................... 120,331 85,049 205,380 - .79Italy ...... .................... 71,871 - 71,871 - .28

Ivory Coast. .......................... 81,095 163,278 244,373 11,500 .99Jamaica ...... .......... .... 58,360 69,175 127,535 6,800 .52Japan ......................... .. 464,552 - 464,552 - 1.79

Kenya ................. .......... 156,279 163,873 320,152 - 1.23Kenya, Tanzania and Uganda( ........ 159,736 51,028 210,764 - .81Korea .......................... . 498,549 589,817 1,088,366 15,000 4.25

120

Appendix DInternational Bank for

Reconstruction and Development

June 30, 1976

Effective loans held by Bank Loans Percent ofappreved total effective

Disbursed Undisbursed but not yet and non-Members liable as borrower or guarantor(') portion portion() Total effective(5) effective loans

Lebanon . ................ $ 13,685 $ 32,249 $ 45,934 $ - .18Liberia .......... ................. 28,962 29,263 58,225 4,000 .24Madagascar . .......................... 27,129 6,750 33,879 - .13Malawi ........................... - - - 9,200 .04Malaysia . .......................... 315,324 296,010 611,334 68,500 2.62Mauritius . .......................... 4,968 21,027 25,995 - .10Mexico . ................ 1,267,296 768,954 2,036,250 175,000 8.52Morocco ........................... 285,923 118,321 404,244 149,950 2.13New Zealand ............... ........ 56,144 - 56,144 - .22Nicaragua ........................... 63,565 23,066 86,631 11,000 .38Nigeria ....... .................... 365,771 210,844 576,615 125,000 2.70Norway ........................... 46,287 - 46,287 - .18Oman ........................... 41 8,099 8,140 .03Pakistan ........................... 360,160 120,752 480,912 - 1.85Panama ............ ............... 76,593 49,356 125,949 12,000 .53Paraguay ........................... 21,121 20,842 41,963 4,000 .18Peru ........................... 161,306 67,937 229,243 174,100 1.55Philippines ..... ... 282,733 403,292 686,025 151,000 3.22Portugal ..... ... 47,012 - 47,012 36,000 .32Romania . .......................... 72,200 277.514 349,714 110,000 1.77Rwanda ......................... - - - 3,500 .01Senegal ..... .................... 12,860 37,255 50,115 - .19Sierra Leone ............. ............. 12,774 5,000 17,774 - .07Singapore ........................... 102,367 47,406 149,773 - .58South Africa ........................... 1,714 - 1,714 - .01Spain ........................... 279,205 73,176 352,381 - 1.36Sri Lanka ........................... 37,453 9,363 46,816 - .18Sudan ........................... 73,579 - 73,579 20,000 .36Swaziland ........................... 146 10,354 10,500 - .04Syrian Arab Republic . ........ 13,161 154,431 167,592 63,000 .89Tanzania ... ............. 86,933 51,853 138,786 - .53Thailand . ............. 299,838 288,023 587,861 107,000 2.68Trinidad and Tobago . ...... .. 39,123 38,243 77,366 - .30Tunisia .. . .. 118,726 177,170 295,896 - 1.14Turkey ........................... 358,386 470,982 829,368 210,500 4.00United Kingdom ............ ........... 37,059 - 37,059 - .14Uruguay ........................... 77,581 49,686 127,267 .49Venezuela ........................... 241,000 19,660 260,660 - 1.00Yugoslavia ........... ................ 663,026 355,362 1,018,388 201,950 4.70Zaire . .19,956 80,188 100,144 - .39Zambia . ................... ....... 195,466 170,853 366,319 - 1.41Sub-totals members(') ................. $13,078,688 $9,034,222 $22,112,910 $3,350,435

International Finance Corporation ........ 322,150 179,793 501,943 - 1.93Amounts that will be due from membersfor maintenance of value of currencieson loan-Note B ....................... 125,926 - 125,926

Totals June 30, 1976 ... $13,526,764 $9,214,015 $22,740,779 $3,350,435 100.00Totals June 30, 1975 ....... ........ $12,188,304 $7,674,979 $19,863,283 $2,459,208

(continued)

121

Summary Statement of Loans (continued) Appendix DJune 30, 1976 and June 30, 1975 International Bank forExpressed in United States dollars-see Notes to Financial Statements, Appendix G Reconstruction and Development

Summary of Currencies Repayable on member's membership but which subsequently became inde-Effective Loans pendent and members of the Bank in their own right (except

Amnnunts(' Malta which although independent is not a member of theBank). In all these instances (except in the case of a loan to the

1976 1975 Public Utilities Board of Singapore guaranteed by Malaysia)Currencies (in thousands) these territories have assumed liability as a borrower or guar-Argentine pesos ............... $ - $ 31 antor. In order to avoid double counting, liabilities for theseAustralian dollars ............. 116,312 118,197 loans are shown under the name of the original member(whoseAustrian schillings ........... . 53,232 55,640 guarantee continues unaffected). These loans are shown belowBelgian francs ............... 204,863 227,227 together with an indication of the member under whose nameBrazilian cruzeiros ............ 21,078 28,387 they are listed.Burmese kyats ................ 1,387 1,408 AmountsCanadian dollars .............. 318,181 336,632Danish kroner .......... ..... 33,582 39,132 GUARANTORS 1976 1975Deutsche mark ................ 3,192,708 2,929,445 Borrowers (in thousandsFinnish markkaa ........... 28,468 29,125 AUSTRALIAFrench francs ................ 173,087 214,967 Papua New Guinea ................. $47,944 $51,714Ghanaian cedis ................ 3,046 3,034 BELGIUMGreek drachmas ............... 2,318 2,718 *Burundi and Rwanda ........ ....... 27 68Indian rupees ................. 49,878 44,894 Zaire ........................ 1,000 2,954Iranian rials ......... ........ 27,121 27,582 FRANCEIraqi dinars .......... ....... 3,035 2,948 Algeria ....... - 43Irish pounds .................. 10J,46 12,251 Mauritania ............ - 374Italian lire .................. 99,794 131,253 MALAYSIAJapanese yen ' 1,444,642 1,591,426 Singapore (Public Utilities Board) .... 4,435 5,230

Kuwati inar ............ 43,127 447179 UNITED KINGDOMKuwaiti dinars .439,127 447,179 ~~~~~~Kenya ............... 1,450 1,788

Lebanese pounds .............. 32,500 35,155 Malta ......l....... . . 1 ........ 16 21Libyan dinars ......... ...... 115,343 140,936 Mauritius. 1,785 1,969Luxembourg francs ............ 5,218 5,378 Nigeria. . .4356 7,448Malaysian ringgits ............. 28,340 29,342 *Southern Rhodesia and Zambia. 16,892 19,683Mexican pesos ................ 43,477 40,914 Singapore. 8,604 9,989Netherlands guilders . ......... 338,634 236,559 Swaziland .3,283 4,308Norwegian kroner ............. 42,972 45,555 Trinidad and Tobago. 725 725Portuguese escudos ........... 10,746 13,011 Uganda ... .......... ...... 25 34Pounds sterling ............... 180,312 218,891 Zambia ....................... - 918Rials Omani .................. 651 651

'Loans made for joint benefit of territories listed. (Southern Rhodesia inSaudi Arabian riyals ........... 158,838 150,616 included in the membership of the United Kingdom'.)Singapore dollars ......... .. 4,820 4,912South African rand ............ 46,826 54,069 Eight loans have also been made to the International FinanceSpanish pesetas .............. 50,796 58,220 Corporation.Sri Lanka rupees .............. 162 198 (2) These amounts do not include $11,135,000 ($14,122,000-Sudanese pounds ............. 2,535 2,786 1975) of effective loans, which the Bank has agreed to sell, andSwedish kronor ............... 96,818 106,734 $12,623,000 ($10,093,000-1975) of grant participations. Of theSwiss francs .................. 1,295,782 712,094 undisbursed balance, the Bank has entered into irrevocableNew Taiwan dollars. ........... 21,024 19,786 commitments to disburse $26,907,000 ($36,405,000-1975).United Arab Emirates dirhams. . 82,999 80,701 (3) Agreements providing for these loans have been approvedUnited States dollars .......... 4,483,302 3,725,509 by the Bank, but the loans do not become effective and dis-Venezuelan bolivares .......... 136,738 127,762 bursements thereunder do not start until the loans and relatedDisbursed portionofeffectiveloans agreementshavebeensigned andtheborrowersandguarantors,

held by Bank ....... .. $13,400,838 $12,053,255 if any, take certain action and furnish certain documents to theAdd-Amounts that will be due Bank. This amount is net of $2,965,000 ($9,742,000-1975) offrom members for maintenance loans not yet effective which the Bank has agreed to sell.of value of currencies on loan (4) Loans made to the Caribbean Development Bank for the-Note B . ............. 125,926 135,049 benefit of the territories of the members listed (in the case of

$13,526,764 $12,188,304 the United Kingdom, the territories are those of its AssociatedAdd-Undisbursed portion of States and Dependencies in the Caribbean region). The mem-effective loans held by Bank . 9,214,015 7,674.979 bers will be severally liable as guarantors to the extent of sub-

Effective loans held by Bank . . $22'740'779 $19,863,283 loans made in their territories.Effetiveloas hed b Ban . $2,70,77 $1,863283 (5) One loan equivalent to $23,250,000 is shown under

(1) In some instances loans were made, with the guarantee of Bolivia (Guarantor) but is also guaranteed by Argentina.a member, in territories which atthetime were included in that (0) Members are jointly and severally liable.

122

Summary Statement of Borrowings Appendix EInternational Bank for

Reconstruction and Development

Jane 30, 1976 and June 30, 1975

Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix G

Operations during the fiscal year endedJune 30, 1976

Repaymentsand sinking Weighted average

Principal Fund and Principal effective Due datesoutstanding at purchase fund Translation outstanding at interest ratesn') at

Currencies payable June 30, 1975 Borrowings purchases adjustments June 30. 1976(1) 1976 1975 June 30, 1976

Belgian francs .$ 80,851 $ - $ (855) $ (9,050) $ 70,946 7.14% 7.14% 1977-1986Canadian dollars .145,289 - (715) 9,207 153,781 6.63 6.63 1976-1993De'utsche mark .2,858,678 856,863 (281,077) (235,686) 3,198,778M3) 7.36 7.32 1976-1988French francs .37,129 - (1,110) (5,468) 30,551 7.16 7.16 1977-1987Italian lire .95,174 - - (23,788) 71,386 6.67 6.67 1976-1988Japanese yen ....... .... .. ... 1,636,916 60,560 (189,193) (6,582) 1,501,701(4) 7.38 7.37 1976-1988Kuwaiti dinars ....... ........ . 422,733 - (19,802) (12,290) 390,641 7.09 7.10 1976-1992Lebanese pounds .33,685 - - (3,166) 30,519 6.76 6.76 1978Libyan dinars .135,113 - (33,778) - 101,335 7.63 7.72 1983Netherlands guilders .195,883 167,463 (26,511) (23,553) 313,282 7.47 6.94 1976-1988Pounds sterling .34,879 - (758) (6,514) 27,607 7.04 7.00 1976-1982Saudi Arabian riyals .143,267 - - (1,624) 141,643 8.00 8.00 1984Swedish kronor .38,076 - - (4,377) 33,699 6.58 6.58 1979-1992Swiss francs .792,987 474,674 (27,823) 37,558 1,277,396(1) 6.70 6.23 1977-1991United Arab Emirates dirhams. . 75,999 - - 1 76,000 8.00 8.00 1980-1989United States dollars. 5,692,485 2,904,499 (695,896) - 7,901,088(3)(n) (5 7.57 7.09 1976-2001Venezuelan bolivares .123,687 - - (216) 123,471 7.91 7.91 1977-1989Principal at face value .$12,542,831 $4,464,059 $(1,277,518) $(285,548) $15,443,824Less-Receivable under

contracts .255,868 542,573 - (1,279) 797,162(4)Principal outstanding atface value .... ... . ........ $12,286,963 $3,921,486 $(1,277,518) $(284,269) $14,646,662Less-Net unamortized

discountsand premiums. 11,942 (1,000) - - 10,942TOTALS .$12,275,021 $3,922,486 $(1,277,518) $(284,269) $14,635,720

°') The following table shows the aggregate principal amount of maturities, sinking fund requirements, and in the cases of certain Canadian issues, non-cumulativepurchase fund requirements, each year for the five years following the date of this statement:

AmountsFiscal year ended June 30 1976 1975

(in thousands)

1976 ......................... ............................... .......... $ - $1,252,0631977 ......................................... ............. ...... ....... 1,3 69,928 1,316,8901978 .................. .... ...... .................... .................. 1,262,696 6 00,4401979 .................. ................... ............................. 833,424 849,4271980 ...................................... ............................ 1,371,969 1,293,5071981 ............................................................ ....... 1,695,996 -

TOTALS ......... ........... .......... . .... ..... ....... ..... ... ...... .. $6,534,013 $5,312,327

(a) The effective interest rates are computed at the dates of issue, and include interest and discounts or premiums. For consistency, annual effective interest rateshave been converted into semi-annual equivalents. The discounts or premiums are being amortized overthe life of the issues.

i3 In addition, the Bank has subsequently borrowed or entered into agreements to borrow as follows: DM 150 million (US equivalent $58.3 million) from theDeutsche Bank, $100 million from the Banque Nationale de Yougoslavie and $50 million from the Saudi Arabian Monetary Agency.

(4) Includes the following contracts to borrow for settlement on the dates indicated .

'ossues Amounts Settlement dates(in thousands)

Japanese yen:Serial Obligations of 1976, due 1982-83 (Y2,000 million) .......... ..... . .... ... $ 6,725 September 29, 1976

Swiss francs:61/2% Bonds of 1976, due 1991 (SwF 100 million) . . $ 40,437 July 9, 1976

United States dollars:8% Notes of 1976, due 1981 ...... ................... .. . $250,000 July 15, 197683/a %' Notes of 1976, due 1986 ....... ..................... 250,000 July 15, 19768.85% Bonds of 1976, due 2001 ....................... .. .................. . 250,000 July 15, 1976

$750,000

TOTAL .... $797,162

5) Includes $129 million borrowed from the InterestSubsidy Fund which is administered by the Bank. The Fund, which obtained its resources from voluntary con-tributions from member governments, was established to subsidize the interest payments to the Bank on loans made to poorer developing countries.

123

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Appendix FInternational Bank for

Reconstruction and Development

Amounts pain in Amounts subject to callSubscriptions (Note B) Note Br Voting poker

AOmou ntsexpressed in Expressed in Expressed in

United States UJnited States Expressed Unitedl States Expresseddollars of the dollarsof the in dollars of the in

oaeight and weight ann current weight and currantfineness in tine ness in U nited tineness ir Un ited

Percent etfect 00 etfect on States effect on states Number PercentMembers Shares at tatal July 1. 1944 luiy t, 1944 dollars Juiy t, 1944 dollars at votes at total

Lesotho.........43 .02 $ 4,300 $ 430 $ 519 $ 3,870 $ 4,669 293 .10Liberia . ...... 213 .08 21,300 2,130 2,570 19,170 23,126 463 .16Lityan Arab Republic. .. 200 .08 20,000 2,000 2,41 3 11,000 21,714 450 .16Luxembourg .. ........ 200 .08 20,000 2,000 2,413 1 8,000 21.714 450 .16Madagascar .. .... 219 .09 21,900 2,190 2,642 1 9,7 10 23,777 469 .16Malawi.. 150 .06 15,000 1,500 1,810 13,500 16,286 400 .14Malaysia...1,587 .62 158,700 15,870 19,145 142,830 172,303 1,837 .64Mall ..... 173 .07 17,300 1,730 2,087 15,570 18,783 423 .15Mauritania....100 .04 10,000 1,000 1,206 9,000 10,857 350 .12Mauritius .. 188 .07 18,800 1,880 2,268 16,920 20,411 438 .15Mexico .. 2,280 .89 228,000 22.800 27,505 205,200 247,543 2,530 .88Morocco . . .. 960 .38 96,000 9,600 11,581 86,400 104,228 1,210 .42Nepal .. ~.. 112 .04 11,200 1.120 1,351 10,080 12,160 362 .13Netherlands . ...... 5,923 2.32 592,300 59,230 71,452 533,070 643,068 6,173 2.15New Zealand... ....... 1,716 .67 171,600 17,160 20,701 154,440 186,308 1,966 .68Nicaragua. 91 .04 9,100 910 1,098 8,190 9,880 341 .12Niger .... 100 .04 10,000 1,000 1,206 9,000 10,857 350 .12Nigeria...1,152 .45 115,200 11,520 13,897 103,680 125.074 1.402 .49Norway . . .... 2,048 .80 204,800 20,480 24,706 184,3 20 222,354 2,298 .80Oman. .. ... 60 .02 6,000 600 724 5,400 6,514 310 .11Pakistan 2,000 .78 200.000 20,000 24,127 180,000 217,143 2,250 .78Panama.. .. 181 .07 18,100 1,810 2,183 16,290 19,651 431 .15Papua New Guinea .. ...... 171 .07 17,100 1,710 2,063 15,390 18,565 421 .15Paraguay 60 .02 6.000 600 724 5,400 6,514 310 .11IPeru. 735 .29 73,500 7,350 8,867 66,150 79.800 985 .34Philippines ... . . 1.3 22 .52 137,200 13,220 15,948 118,980 143,531 1,572 .55Portugal . 800 .31 80,000 8,000 9,650 7 2,000 86,857 1.050 .37Qatar 171 .07 17,100 1,710 2,063 15,390 18.566 421 .15Romania .. 1,621 .63 162,100 16,210 19,555 145,890 175,994 1,871 .65Rwanda 150 .06 15,000 1,500 1,810 13,500 16,286 400 .14Saudi Arabia . .... . 1.143 .45 114,300 1 1,430 13,789 102,870 124,097 1,393 .48Senegal(' r... 333 .13 33,300 3,330 4,0117 29,970 36,154 583 .20Sierra Leone . . 150 .06 15,000 1,500 1,810 13,500 16,286 400 .14Singapore ....... 320 .13 32,000 3.200 3,860 28,800 34,743 570 .20Somalia .. 150 .06 15,000 1,500 1,810 13,500 16,286 400 .14South Africa.. 2,730 1.07 273,000 27,300 32,933 245.700 296,400 2,980 0.04South Viet-Nam . . 543 .21 54,300 5,430 6,550 48.870 58,954 793 .28Spain...~.... 3,371 1.32 337,100 33,710 40.666 303,390 365,994 3,621 1.26Sri Lanka .. 827 .32 82,700 8,27 0 9,976 74,430 81,789 1,077 .37Sudan 600 .23 60,000 6,000 7,238 54,000 65,143 850 .30Swaziland. . 68 .03 6,800 680 820 6.120 7,383 318 .11Swedeni....2,773 1.08 277,300 27,730 33.452 249.570 301,068 3,023 1.05Syrian Arab Republic .. 421 .16 42,100 4,210 5,079 37,890 45,709 671 .23Tanzania .... 350 .14 35,000 3,500 4,222 31.500 38,000 600 .21Thailand .. 1,143 .45 114,300 11,430 13,789 102,870 124,097 1,393 .48Togo 150 .06 15,000 1,500 1.810 13,500 16,286 400 .14Trinidad and Tobagu 535 .21 53,500 5,350 6,454 48,150 58,086 785 .27Tunisia 373 .15 37,300 3,730 4,500 33,570 40,497 623 .22Turkey ........ . 1,286 .50 128,600 12,860 15,514 115,740 139,623 1,536 .53Uganda . . . . .. 333 .13 33,300 3,330 4,017 29,970 36,154 583 .20United Arab Emirates . 128 .05 12,800 1,280 1.544 11,520 13,897 378 .13United Kingdom....26,000 10.16 2,600,000 260,000 313.651 2,340,000 2,822,856 26,250 9.13United States . . .. 64,730 25.30 6,473,000 647,300 780.869 5.825,700 7,027,825 64,980 22.60Upper Volta. .100 .04 10,000 1,000 1,206 9,000 10,857 350 .12Uruguay 411 .16 41,100 4,110 4,958 36,990 44,623 661 .23Venezuela...1,972 .77 197,200 18,720 23,789 177,480 214,103 2,222 .77Western Samoa,. ..17 .01 1,700 170 205 1,530 1,846 267 .09Yemen Arab Republic 85 .03 8.500 850 1,025 7,650 9,729 335 .12Yemen, People's DemnocraticRepublic of, . 748 .10 24,800 2.480 2,992 22,320 26,926 498 .17

Yugoslavia ... 1,178 .46 117,800 11,780 14,211 106,020 127,897 1,428 .50Zaire .. 960 .38 96,000 9,600 11,581 86,400 104.228 1.7210 .42Zambia . ... . 648 .25 64,800 6,480 7,817 58.320 70,355 898 .31

TOTALS . .. 255,818 100.00 $25,581,800 $2,558,180 $3,086,057 $23,023,620 $27,7 74,511 287,568 100.00

' The evauivalent of 3555.000. in carrtent United States dollarin. has been received taom Sereoal on account of on encrea se in its subscription hobich is inprocess of completion. 125

Notes to Financial Statements

June 30, 1976 and June 30. 1975

Summary of Significant Accounting and Disposition of Income and General ReserveRelated Policies The Bank has not declared or paid any dividends to its members.

Commencing in 1950, a portion or all of the accumulated net incomeTranslation of Currencies has been allocated to the General Reserve, formerly called theThe financial statements are expressed in terms of the current Supplemental Reserve against Losses on Loans and from CurrencyUnited States dollar solely for the purpose of summarizing the Devaluations. (See Note D.)Bank's financial position and the results of its operations for the Since 1964, it has been the Bank's policy to transfer to the Inter-convenience of its members and other interested parties. national Development Association part of the year's income which

was not needed for allocation to reserves or otherwise required toThe Bank IS an international institution which conducts Its opera- be retained in the Bank's business and accordingly could havetions in the currencies of all of its members.The Bank's resources are been prudently distributed as dividends. Such transfers are ac-derived from its capital, borrowings and accumulated earnings in counted for as a charge to accumulated net income.the various currencies of its members and are held, invested or lentin those same currencies. The Bank matches its borrowing obliga- Staff Retirement Plantions in any one currency with assets in the same currency, as The Bank has a contributory retirement Plan for its staff, whichprescribed by its Articles of Agreement, by holding, investing or also covers the staff of the International Finance Corporation. Alllending the proceeds of its borrowings in the same currencies in contributions to the Plan and all other assets and income of thewhich they are borrowed, and in respect of funds representing its Plan are held by the Bank separately from the assets of the Bankpaid-in capital and accumulated earnings, the Bank as far as and the Corporation and can be used only for the benefit of thepossible maintains a neutral currency position by not converting oarticipants in the Plan and their beneficiaries. The total cost of theone currency into another. Plan (see Note F) includes amortization of unfunded liabilities. The

In general, the Bank translates its assets and liabilities in cur- Banks policy is to fund pension costs accrued.rencies other than United States dollars at market rates of ex- Note A-Translation of Currencieschange to the United States dollar at the end of each fiscal quarter A Statement issued in 1975 by the Financial Accounting Standardswith the exception of buildings and deferred charges which are Board in the United States requires that foreign currency transla-translated at exchange rates in effect when the buildings were lion adjustments be included in the determination of net income foracquired or the charges incurred. Income and expenses other than the period in which they occur; however, in view of its characterdepreciation and amortization charges are translated at an average as an international institution and its related financial policiesof the market rates of exchange in effect during each quarter. The described previously, the Bank does not deem this Statement tocapital stock, which is expressed in terms of the United States dollar be applicable in the circumstances. Had the Bank complied withof the weight and fineness in effecton July 1. 1944(the 1944 dollar), this Statement, net income for the fiscal year ended June 30, 1976is translated into current United States dollars at the rate of would have decreased by $150,780,000 (increased by $13,909,000$1.20635 per 1944 dollar. (See Note B.) Ior the fiscal year ended June 30, 1975) and the General Reserve

Under the Bank's present policies, adjustments arising from the would have increased (decreased) by the same amount.translation of currencies to the current United States dollar equiva- Note B-Capital Stock, Restrictedlent would not now or in the future result in realized gains or losses Currencies and Maintenance of Valuesuch as would result from the conversion of the various currencies in the Articles of Agreement, the capital stock of the Bank is ex-into United States dollars. Accordingly, trans ation adjustments, pressed in terms of United States dollarsof the weight and finenesswith the exception of those relating to capital subscriptions de- in effect on July 1. 1944. It comprises 270,000 authorized sharesscribed in Note B, are charged or credited to the General Reserve of the par value of $100,000 each, of which 255,818 shares haverather than income. (See Note A.) In those few instances where been subscribed (255.489-1975). Ten percent of the capital sub-currencies are converted to another currency, the resulting gain or scriptions has been called and paid in; the remaining ninety percentloss, if any, is included in the determination of net income. is subject to call by the Bank only when required to meet the

obligations of the Bank created by borrowing or by guaranteeingInvestments loans. As to $24,688,454,000 ($24,656,703,000-1975), the restric-Investment securities are recorded at cost or amortized cost. Gains tion on calls is imposed by the Articles of Agreement and, as toor losses on sales of investments, measured by the difference $3,086,057,000($3,082,088,000-1975), by resolutionsof the Boardbetween average cost and proceeds of sales, are recorded as an of Governors.element of income from investments.

On April 30, 1976, the Board of Governors of the InternationalLoans Monetary Fund (the Fund) approved proposed amendments to theAll of the Bank's loans are made to, or guaranteed by, member Fund's Articles of Agreement under which, when they becomnegovernments with the exception of loans to the International Fin- effective, gold will be abolished as a conmmo oenominator of theance Corporation. The principal amounts of loans are repayable in monetary system, currencies null no longer have par values, andthe currencies lent. Interest on loans is also payable in the cur- a j computations relating to crrencies of members for the purposerencies lent. The Bank has not suffered any losses on loan receiv- of applying the provisions of the Fecd's Articles will be made1 onables and it has a policy of not participating in moratoria or re- the basis of the Special Drawing Right(SDR). The value of the SOBschedulings. No losses on loan receivables are anticipated and expressed in terms of United States dollars is based upon theaccordingly, no reserve for loan losses has been establishedu weighted relative values of a number of leading currencies, includ-however, should such losses arise they would be included in the ing the United States dollar.determination of net income. When the amendments to the Articles of Agreement of the Fund

become effective, it will no longer be possible to determine theAdministrative Expenses value of the United States dollar of the weight and fineness in effectA management fee is charged to the International Development on July 1, 1944. The Bank has under consideration the effect ofAssociation and a service and support fee to the International these amendments with respect to the unit of denomination of itsFinance Corporation representing their respective shares of the capital. A restatement of the Bank's capital in recognition of theadministrative expenses of the Bank. changes described above would result in adjustment of the items

126

Appendix GInternational Bank for

Reconstruction and Development

Capital Stock and Translation Adjustments on Capital Subscrip- to authorize selective increases in the subscriptions of members totions should the capital be denominated in any unit other than the the capital stock of the Bank in amounts parallel to special increasescurrent United States dollar (using the basis of $1.20635 for trans- in their quotas in the Fund. In accordance with this practice, onlating 1944 dollars to current dollars). It is not expected that any May 4,1976, the Executive Directors of the Bank submitted to itschange made would have a material effect on the financial position Board of Governors draft resolutions which would authorize (1) anor ;esults of operations of the Bank. increase of $7,000,000,000 in terms of 1944 dollars, $8,444,440,000

in current United States dollars, in the authorized capital stock of theThe portion of capital subscriptions paid in to the Bank is divided Bank, and (2) selective increases in thetotal amount of $6,913,400,000into two parts:(1) $308,606,000 ($308,209,000-1975) initially paid in terms of 1944 dollars, $8,339,970,000 in current United Statesin gold or United States dollars. and (2) $2,777,451,000 dollars, in the subscriptions of certain members. Implementation($2,773,879,000-1975) paid in the currencies of the respective of the increase in capital would depend upon subscriptions bymembers. Of this latter portion an amount of $128,235,000 members following approval of the draft resolutions.($121,527,000-1975) was subsequently converted by membersinto United States dollars, subject to the right of the Bank or the Note C-Investmentsmembers to reverse the transactions. The amounts initially paid The market value of investment securities was $5,962,948,000in gold or United States dollars or subsequently converted by mem- ($4,768,233,000-1975) compared with a cost of $5,979,293,000bers into United States dollars are freely usable by the Bank in any ($4,790,612,000-1975), including investments not traded in theof its operations; however, the remaining amounts paid in the market which were valued at their cost of $310,545,000currencies of the members, hereinafter called restricted cur- ($1,047,909,000-1975). At June 30, 1975, the item Investmentsrencies, are usable by the Bank in its lending operations only with included securities purchased under agreements to resell amount-the consent of the respective members. The equivalent of ing to $600,000,000.$1,817,645,000 ($1,968,486,000-1975) had been used with suchconsent. Note D-Reserves and Net Income

Article 11, Section 9oftheArticlesof Agreementprovidesformain- In accordance with the provisionsof a Statement issued in 1975 bytenance of the value, as of the time of subscription, of such re- the Financial Accounting Standards Board in the United States, thestricted currencies, requiring (1) the member to make additional Supplemental Reserve against Losses on Loans and from Currencypayments to the Bank in the event that the par value of its cur- Devaluations and the Special Reserve have been restated undertherency is reduced or the foreign exchange value of its currency has, heading Capital and Reserves. The Supplemental Reserve has beenin the opinion of the Bank, depreciated to a significant extent in its renamed General Reserve.territories, and (2) the Bank to reimburse the member in the event In July 1976, the President of the Bank proposed to the Executivethat the par value of its currency is increased. On March 16, 1973, Directors that they approve the allocation of $119,853,000 to thethe Executive Directors resolved that, for all members that estab- General Reserve out of the $219,853,000 net income earned in thelished central rates for their respective currencies, pending estab- fiscal year ended June 30, 1976 and that they recommend to thelishment of new par values, maintenance of value obligations be Board of Governors that the balance of $100,000,000 be transferredsettled on the basis of those central rates. These obligations of the by way of grant to the International Development Association.members and of the Bank become effective immediately upon thehappening of those events with respect to holdings of restricted I n September 1975, the Bank allocated $164,971,000 to the Generalcurrencies represented by currency balances and demand obliga- Reserve (as renamed) out of the $274,971,000 net income earned intions. With respect to restricted currencies out on loan, these the fiscal year ended June 30, 1975 and authorized the transfer ofobligations become effective only as and when such currencies are the balance of $110,000,000 by way of grant to the Internationalrecovered by the Bank, except that in several cases the Bank and Development Association.the members concerned have agreed to make provisional settle- Consistent with past practice, the General Reserve (as renamed)ments of such obligations, by means of one or more payments over has been charged with $150,780,000 during the current fiscal yearperiods not exceeding five years. The amouints thus receivable, (credited with $13,909,000-1975) representing net translation$735,000 ($1,246,000-1975) or payable, $11,831,000 ($20,137,000 adjustments as a result of currency depreciations and apprecia--1975) by the Bank are included in Amounts Required to Maintain tions.(See Statement of Changes in General Reserve-Appendix B.)Value of Currency Holdings under the headings Receivable onAccount of Subscribed Capital and under Liabilities, respectively. The Special Reserve consists of amounts of loan commissions set

aside pursuantto Article IV, Section 6 of the Articles of Agreement,Where market rates of exchange are not related to par values or which are to be held in liquid form and to be used only for the pur-central rates, as in the cases of a majority of members, and where pose of meeting liabilities of the Bank on its borrowings and guar-there are differences between market rates of exchange and the antees. As a result of a decision made in 1964, the allocation of suchrates at which capital subscriptions of members have been paid or commissions to the Special Reserve was discontinued in respect ofare payable, such differences are shown as Translation Adjust- subsequent loans and no further additions are being made to it.mdhts on Capital Subscriptions under the heading Other Assets. The market value of investment securities set aside for this pur-The amount thus established, $269,910,000 ($87,775,00031975)4 pose was $292,621,000 ($301,091,000-1975).consists of notional receivables, $287,058,000 ($179,354,000 ps a 226100(31010017)-1975) and notional payables, $17,148,000 ($91,579,000-1975). Note E-Contributions to the InternationalThese will become maintenance of value obligations if and when Development Associationthe provisions of Article II, Section 9 of the Articles of Agreement The Bank has authorized transfers by way of grants to the Inter-or the resolution of the Executive Directors described above can national Development Association totalling $1,025,000,000be applied. ($915,000,000-1975) from net income for the fiscal years endedIn view of the proposed amendments to the Fund's Articles of June 30, 1964 through June 30, 1975. Of this amount $558,443,000Agreement as described in paragraphs two and three above, the was payable at June 30, 1976 ($454,433,000-1975).timing of the establishment and settlement of maintenance of value Note F-Staff Retirement Planobligations is uncertain. The cost of the Plan to the Bank for the fiscal year ended June 30,On March 22, 1976, the Board of Governors of the Fund approved a 1976 was $19,613,000 ($16,670,000 for the fiscal year ended Juneresolution which proposes, subject to certain conditions, increases 30, 1975) which included amortization of unfunded liabilities overin the quotas of its members. It has been the practice of the Bank periods from 15 to 40 years.

127

Report of Financial StatementsIndependent Accountants Covered by the

Foregoing Report1801 K STREET, N.W.

WASHINGTON, D.C. 20006JULY 30, 1976

ToINTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOPMENTWASHINGTON, D.C.

We have examined the financial statements (Appendices A through Balance Sheet........ ................. Appendix A (page 116)G) of International Bank for Reconstruction and Development as ofJune 30, 1976 and 1975, and for the years then ended. Our exami- Statement of Income and Expenses . Appendix B (page 118)nations of these statements were made in accordance with generally Statement of Accumulated Net Income... Appendix B (page 118)accepted auditing standards and accordingly included such tests ofthe accounting records and such other auditing procedures as we Statement of Changes in General Reserve. .Appendix B (page 118)considered necessary in the circumstances. Statement of Changes in Financial Position .Appendix C (page 119)

Consistent with past practice, the Bank records currency translation Summary Statement of Loans ...... ...... Appendix D (page 120)adjustments, except those pertaining to the nine percent portion ofits capital stock, as charges against or credits to the General Re- Summary Statement of Borrowings ........ Appendix E (page 123)serve. Statement 8 of the Financial Accounting Standards Board Statementof Subscriptionsto Capital Stockrequires that these adjustments, which are set forth in the State- and Voting Power .Appendix F (page 124)ment of Changes in General Reserve, be included in the determina-tion of net income; however, in view of the Bank's character as an Notes to Financial Statements .Appendix G (page 126)international institution and its related financial policies, which aredescribed in the Summary of Significant Accounting and RelatedPolicies (Translation of Currencies) and in Note A, the Bank doesnot deem the application of this accounting principle to be appropri-ate in the circumstances.

The Special Reserve and the General Reserve have been restatedfor presentation in the balance sheet under the heading Capitaland Reserves as described in Note D.

In our opinion, the financial statements examined by us presentfairly, in terms of United States currency, the financial position ofInternational Bank for Reconstruction and Development at June 30,1976 and 1975, and the results of its operations and changes in itsfinancial position for the years then ended, in conformity withgenerally accepted accounting principles applied on a consistentbasis after restatement for the change, with which we concur,described in the preceding paragraph.

PRICE WATERHOUSE & CO.

128

Statement of Loans Approved Appendix HInternational Bank forduring the Fiscal Year 1975/76 Reconstruction and Development

(US dollars)

GUARANTOR Date of Interest PrincipalPurpose and borrower approval Maturities rate amount

AlgeriaEducation if ................................................ February 10, 1976 1981/1995 8.5% $ 47,000,000

Adgeria (Guarantor)Industry-Societ Nationale des Materiaux de Construction . December 16, 1975 1980/1991 8.5% 46,000,000Power I1-Societe Nationale de l'E!ectricite et du Gaz(SONELGAZ) .... June 22, 1976 1979/1991 8.85% 57,500,000

BoliviaRural development .......................... ......... ..... February 17, 1976 1983/2001 4.5% 9,500,000bevelopment finance company-Banco Industrial S.A.(BISA) ..... June 22, 1976 1980/1994 8.85% 10,000,000

Bolivia (Guarantor)Electric power IV-Empresa Nacional de Electricidad S.A. (ENDE). . April 6,1976 1980/2000 8.5% 25,000,000

BotswanaHighways III ........................................... November 4, 1975 1979/1998 8.5% 5,800,000Education . ... ....................................... May 27, 1976 1983/2001 8.5% 7,000,000Education ................................... ............. May 27, 1976 1983/2001 4.5% 3,500,000

BrazilRural development ............ ......................... ..... December 11, 1975 1981/2000 8.5% 12,000,000Development finance company-National Bank for EconomicDevelopment (BNDE) ............ .......... February 10, 1976 1979/1987 8.5% 85,000,000

Highways . . ..................................... February 10, 1976 1981/1991 8.5% 55,000,000Agricultural research ................................ April 27, 1976 1981/1996 8.5%o 40,000,000Nutrition ................................... .......... June 24, 1976 1981/1994 8.85% 19,000,000

Brazil (Guarantor)Railways 111-FEPASA-Ferrovia Pauilista S.A ...... ......... ...... October 21, 1975 1981/2000 8.5% 75,000,000Fertilizer-Petrobras Fertilizantes S.A. (BRASFERTIL) .... . . ...... May 11, 1976 1981/1991 8.5% 50,000,000Electric power-Companhia Paranaense de Energia Eletrica (COPEL) . May 11, 1976 1980/1996 8.5% 52,000,000Steel 111-Companhia SiderGrgica Paulista (COSIPA) ... July 22, 1975 1979/1990 8.5% 60,000,000Electric power-Centrais Eletricas Brasileiras S.A. (ELETROBAS) ..... June 24, 1976 1980/1996 8.85% 50,000,000

CameroonEducation Ill ............................................ ... April 20, 1976 1983/2001 4.5% 17,000,000

Cameroon (Guarantor)Railways I11-Regie Nationale des Chemins de Fer .... ............. May 4, 1976 1978/1985 8.5% 2,300,000

Caribbean Region (Guarantor).')Development finance company-Caribbean Development Bank (CDB).. March 30, 1976 1979/1995 8.5% 17,000,000Development finance company-Caribbean Development Bank (CDB).. March 30, 1976 1983/2001 4.5% 3,000,000

ChileIndustry ................................ ................ February 3,1976 1979,'1990 8.5% 33,000,000

Colombia (Guarantor)Development finance companies IV-Banco de la Republica ....... ... March 16, 1976 1979/1992 8.5% 80,000,000

Congo, People's Republic of theRailways 11 ............................................... March 23, 1976 1981/2000 8.5% 38,000,000

Costa RicaHighways IV ............. . ......................... December 30, 1975 1981/2000 8.5% 39,000,000

Cyprus (Guarantor)Development finance company-The Cyprus Development Bank (CDB) May 28, 1976 1978/1992 8.5% 6,000,000

East African Community (Guarantor)(2iDevelopment finance company-East African Development Bank ...... February 3, 1976 1981/1995 8.5% 15,000,000

EcuadorAgriculture-Seeds .... .... .. ............... .......... March 30, 1976 1980,/1991 8.5% 3,000,000Rural development ............................................ March 30, 1976 1980/1991 8.5% 4,000,000highways IV ................................................ March 30, 1976 1981/2000 8.5% 10,500,000

Ecuador (Guarantor)Ports 11-Autoridad Portuaria de Guayaquil ....... ......... May 11, 1976 1980/2000 8.5% 33,500,000

Egypt, Arab Republic ofAgriculture-Fruit and vegetables. .......... . .... May 28, 1976 1983/2001 4.5% 50,000,000Upper Egypt drainage It .............. .......................... June 8,1976 1981/2001 8.85% 10,000,000Textile ............................................... . June 22, 1976 1980/1991 8.85% 52,000,000

Egypt, Arab Republic of (Guarantor)Ports-Alexandria Port Authority........ ....................... April 6,1976 1981/2000 8.5% 45,000,000

El SalvadorElectric power-Comision Ejecutiva Hidroelectrica del Rio Lempa (CEL) June 17, 1976 1983/2001 4,85% 9,000,000

El Salvador (Guarantor)Electric power-Comision Ejecutiva Hidroelectrica del Rio Lempa (CEL) June 17, 1976 1981/2001 8.85% 30,000,000

FijiTelecommunications 11 .............. ............................ July 8,1975 1980/1995 8.5% 5,000,000Agriculture-Sugar development ..... . ........................... March 23, 1976 1981/1996 8.5% 12,000,000

'continued)

(I) The loans are guaranteed by the Bahamas. Barbados, Grenada, Guyana, Jamaica, and Trinidad and Tobago, six of the 16 regional countries and territories ofthe Commonwealth Caribbean, as welt as the United Kingdom.

(2) Guaranteed by Kenya, Tanzania, and Uganda. 129

Statement of Loans Approvedduring the Fiscal Year 1975/76eco.finued"(US dollars)

GUARANTOR Date of Interest PrincipalPurpose and borrower approval Maturities rate amount

GhanaHighways 11............ I .. December 23, 197 5 1981/2000 8.5%, $ 18,000,000Agriculture-Cocoa I . . . .. December 23, 1 97 5 1984,'2005 8. 5%- 14,000,O0OQRural development.. .......... .......... June 22, 1 97 6 1983/2001 4.85%, 21,000,000Industry ........... _.......... June 24, 1976 1981:/1991 8.85%, 3,500,000

Ghana (Guarantor)Development finance company-National Investment Bank (NIB),. December 11, 1975 1978/ 1995 8.5%, 10,000,OOQ

Ghana, Ivory Coast, Togo (Guarantors)Industry-Ciments de l'Afrique de l'Quest (CIMAO).L... . Jne 24, 1976 19817/1991 8.85% 49,500,000

GreeceIrrigation Ili ...................... August 19, 1975 1981.'1990 8.5%, 40,000,000Highways. ..... ..... April 6. 1976 1980. 1991 8.5%- 30,000,000

GuatemalaEducation II. February 17, 1976 1986/'2005 8.5% 14,500,000

Honduras (Guarantor)Ports (supplement)-Empresa Nacional Portuaria ..... July 8, 1975 1977,/1991 8.5%, 3,000,000

IndiaI rrigation ....... May 4, 1976 1983,7/2001 4.5%, 145,000,000Agriculture-Seeds .. .. .... 'viny 27, 1976 1981,./1995 8.5%, 25,000,000Development finance company-industrial Development Bank ofIndia (IDBI) I I . .. .. May 18, 1976 1979,./1994 8.5%, 40,000,000

IndonesiaShipping-Fertilizer distribution July 1, 1975 1979/19 8.5%n 68,000,000Technlical assistanice .,.. ..... January 27, 1976 1982'199 8.5%, 13,000,000Highways IV ...................... April 6, 1976 1981/2000 8.5% 130,000,00Education IV. , ., . .. April 6, 1976 1982/2001 8.5%, 37,000,000Shipping II . .. _.. ..... .. . ... May 4, 1976 19791/1991 8.5% 54,000,000Fertilizer IHII ... .... May 11. 1976 1979., 1991 8.5%e 70,000,000Electric power ..... May 18, 1976 1981",2000 8.5%, 90,010,000Agriculture-Food crops extension. . May 25, 1976 1982,/2001 8.5%, 22,000,000Irrigation VII ..... May 25, 1976 1982,12000 8.5% 33,000,000

Ireland (Guarantor)Development finance company-industrial Credit Company,Limited (I CC), ...... .. August 19, 1975 1978/1990 8.5% 30,000,000

Ivory CoastHighways V. .... ........ August 21, 1975 1980. 1995 8.5%, 43,000,000Industry .. ...... ... June 24, 1976 1981./1991 8.85% 3,500,000

Ivory Coast (Guarantor)Development finance company-Cr6dit de la Cite dIvoire. ... August 21. 1975 19781/990 8.5%, 5,600,000Development finance company-Banque Ivoir/enne de D6veloppementIndustriel ........ November 18, 1975 1979<, 1987 8.5%, 8,000,000

JamaicaPopulation 11 ....... June 8, 1976 19811 2001 8.85%, 6,800,000

KenyaWater supply. .... ..... October 7, 1975 1980/ 2000 8.5%7 35,000,000Education III .......... ..... ...... December 18, 1975 1986/ 2000 8.5%7 10,000,000

Kenya (Guarantor)Electric power-The Tana River Development Company Ltd. (TRDC) . July 1, 1975 19791,/2000 8.5%, 63,000.000Development finance company-Industrial Development Bank Ltd.(IDB) July 8, 1975 1978.'11993 8.5%c- 1M0000,00

KoreaDairy developmnent 11 .. .... . ... ... October 28, 1975 1983,/2000 8.5%e 15,OC0,000Highways III.. ........... Februiary 10, 1976 1980711999 8.5%- 90,000,000Program loan. ...... ........... ....... March 9, 1976 1981. 1I996 8.5%- 75,000,000Rural development.................. March 9, 1976 1983/2000 8. 5%- 20,000,00URural development ... March 9, 1976 1983/2001 4.5%- 40,000,000

Korea (Guarantor)Development finance company- Korea DevelopmentFinance Corporation (KDFC)......July 15. 1975 1978,, 1993 8.5%o 55,000,000

Development finance company-The Medium Industry Bank (M IB), . . November 18, 1975 1978/1992 8.5%, 30,000,000LiberiaHighways III................. ......... August 21, 1975 1980712000 8.5%, 27,500,000Education 11.. .. ... .........I...... May 25, 1976 1983,12001 4.5%, 4,000,000

Liberia (Guarantor)Electric power HI-Liberia Electricity Corporation (LEO)_....... July 8, 1975 1981k/1995 8.5%, 1,800,000

MalawiRural development 11....... ....... June 15. 1976 1983,/2001 4.85%, 9,200,000

130

Appendix HInternational Bank for

Reconstruction and Development

GUARANTOR Date of Interest PrincipalParpose and borrower approval Maturities rate amount

MalaysiaWater supply and sewerage ................................... February 24, 1976 1982/1996 8.5% $ 21,500,000Urban transport II ............................................ . February 24, 1976 1981/2000 8.5% 26,000,000Rural development .................................. June 24, 1976 1981/1999 8.85% 21,000,000

Malaysia (Guarantor)Electric power-National Electricity Board of the States ofMalaya (NEB) ....................... ....................... December 2, 1975 1981/1995 8.5% 35,000,000

Mauritius (Guarantor)Development finance company-Development Bank of Mauritius (DBM) October 21, 1975 1982/2000 8.5% 7,500,000Mexico (Guarantor)Water supply and sewerage-Banco Nacional de Obras y ServiciosPGblicos, S.A ............ ................................. December 18, 1975 1980/1996 8.5% 40,000,000

Development finance company II-Nacional Financiera, S.A. (NAFIN). February 3,1976 1979/1992 8.5% 50,000,000Livestock credit V-Nacional Financiera, S.A. (NAFIN) .... . ...... .. March 9,1976 1980/1996 8.5% 125,000,000Railways 111-Ferrocarriles Nacionales de Mexico and NacionalFinanciera, S.A. (NAFIN) ................ . March 30, 1976 1980/2000 8.5% 100,000,000

MoroccoIrrigation .......... ................. ........................ February 3,1976 1981/1995 8.5% 30,000,000Tourism ............................................ . February 3,1976 1981/1995 8.5% 21,000,000Education Ill ...... ......... .. . ... March 9,1976 1983/2001 4.5% 25,000,000Irrigation and electric power ..................................... June 24, 1976 1981/1996 8.85% 49,000,000

Morocco (Guarantor)Development finance company-Credit Immobilier et Hotelier (CIH) ... May 28, 1976 1979/1996 8.5% 25,000,000

NicaraguaEducation 11 ......... ................ ...... .. April 20, 1976 1983/2000 8.5% 11,000,000

Nicaragua (Guarantor)Ports (supplement)-Autoridad Portuaria de Corinto ....... . .... . July 15, 1975 1979/'1999 8.5% 5,000,000

PakistanElectric power 11 ................................... ......... February 10, 1976 1983/2001 4.5% 50,000,000

Panama (Guarantor)Water supply and sewerage-Instituto de Acueductos yAlcantarillados Nacionales (IDAAN) .......... ................ May 28, 1976 1980/1996 8.5% 12,000,000

ParaguayEducation ............ ............................. May 4,1976 1983/2001 4.5% 4,000,000

PeruHighways ................. ........................... December 30, 1975 1980/2000 8.5% 76,500,000Electric power V ........................ ...... ........... March 2, 1976 1979/1993 8.5% 36,000,000

Peru (Guarantor)Mining-Empresa Minera del Centro del Pern (CENTROMIN) .......... June 3,1976 1980/1990 8.5% 40,000,000Sites and services-Banco de la Vivienda del Pern (BVP) ............. June 8,1976 1980/1996 8.85% 21,600,000

PhilippinesIrrigation .............................................. July 22, 1975 1982/1999 8.5% 42,000,000Development finance company-Development Bank of thePhilippines (DBP) ........... December 16, 1975 1980/1993 8.5% 75,000,000

Education IlIl ................................... .......... March 16, 1976 1983/2001 4.55% 25,000,000Livestock II ..... . ............................... March 16, 1976 1982/1990 8.5% 20,500,000Irrigation ...................... ........................ March 23, 1976 1982/2000 8.5% 50,000,000Grain processing 11 .......... .......... May 25, 1976 1981/1994 8.5% 11,500,000Fisheries 11 .............................................. May 25, 1976 1981/1994 8.5% 12,000,000Urbanization ...................... ........................ May 27, 1976 1981/1998 8.5% 22,000,000Orbanization ........................................ .... May 27, 1976 1983/2001 4.5% 10,000,000

Portugal (Guarantor)Electric power VI-Electricidade de Portugal-Empresa POblica ....... June 24, 1976 1979/1990 8.85% 36,000,000

Romania (Guarantor)irrigation and agricultural development-Banca PentruAgricultura Si Industrie Alimentara .......... ........ .... November 4, 1975 1980/1995 8.5% 40,000,000

Industry-Banca de Investitii ............... .................... November 4, 1975 1978/1995 8.5% 20,000,000Electric power-Banca de Investitii .............. ................. April 13, 1976 1981/1996 8.5% 50,000,000Irrigation-Banca Pentru Agricultura Si Industrie Alimentara ........ April 27, 1976 1981/1995 8.5% 60,000,000

SenegalHighways Ill .............................................. March 16, 1976 1981/1996 8.5% 15,000,000Highways-Feeder roads ......... .............................. March 16, 1976 1983/2001 4.5% 6,600,000

SudanDomestic aviation ............ ................................. June 15, 1976 1983/2001 4.85% 20,000,000

Syrian Arab RepublicWater supply .......................................... .... April 13, 1976 1981/2001 8.5% 35,000,000

(continued)

131

Statement of Loans Approved Appendix Hduring the Fiscal Year 1975/76(continued) International Bank for

(US dollars',

GUARANTOR Date cf Interest PrincipalPurpose and norrower approval Maturities rate amount

Syrian Arab Republic (Guarantor)Telecommunications-Etablissement Public de Telecommunications ... May 20, 1976 1980/1996 8.5 7o $ 28,000,000

Tanzania (Guarantor)Development finance company-Tanzania Investment Bank (TIB). October 28, 1975 1981/1995 8.5% 15,000,000

ThailandIrrigation .... .... ... ... . ...... .. July 15, 1975 1982/2005 8.5% 95,000,000Livestock .... .... ..... ........... January 27, 1976 1983,12001 4.5%, 5,000,0p0Rural development. . ..... . . ..... January 27, 1976 198.3, 2001 4.5% 21,000,000Rubber replanting. ... . .... ... ...... .. .. April 20, 1976 1983/1998 8.5% 50,000,000Education IV.. . ..... . May 27, 1976 1983/2001 8.5% 31,000,000

Thailand (Guarantor)Telecommunications-Telephone Organization of Thailand (TOT) .. May 11, 1976 1980/1996 8.5% 26,000,000

TogoIndustry ... ....... .... ..... .. ... ... June 24, 1976 1981/1991 8.85% 3,500,000

Trinidad and TobagoHighways 11 ....II .... ... . ... .. . . March 30, 1976 1980/1991 8.5% 7,000,000

TunisiaEducation 111 ..... ...... ............ July 1,1975 1980/2000 8.5% 8,900,000Highways II. ........ ... .... .. ... ..... December 18, 1975 1980/1999 8.5% 28,000,000

Tunisia (Guarantor)Development finance company-Banque de DeveloppementEconomique de Tunisie (BDET) . ....... . January 6,1976 1977/1990 8.5% 20,000,000

TurkeyLivestock .. ...... .. ..... ........ .. May 25, 1976 1981/1993 8.5% 21,500,000

Turkey (Guarantor)Electric power 11-Turkiye Elektrik Kurumu (TEK). .. .... November 18, 1975 1980/1995 8.5% 56,000,000Agricultural credit-Turkiye Cumhuriyeti Ziraat Bankasi (TCZB) .. . April 27, 1976 1981/1990 8.5% 63,000,000Pulp and paper-Turkiye Seluloz ve Kagit (SE KA) and SekaBalikesir Muessesesi ..... May 18. 1976 1980/1991 8.5% 70,000,000

UruguayLivestock V .... .. . ..... October 7,1975 1981/1990 8.5%; 17,000,000Development finance company . . ... .. December 2, 1975 1981/1993 8.5% 35,000,000

Yugoslavia (Guarantor)Highways VII-S.R. Slovenije, S.R. Srbije, S.R. Crne Gore . July 8, 1975 1979/1998 8.5% 40,000,000Oil pipeline-Jugoslavenski Naftovod u Osnivanju, Rijeka November 4, 1975 1979/1993 8.5% 49,000,000Water supply-Republicki Fond Voda ..... . ......... ...... May 20, 1976 1981,/1996 8.5% 20.000,000Air pollution control-Preduzece Za Transport i DistribucijuGasa Sarajevo . . . ......... M. . ..... May 25, 1976 1981/2001 8.5% 27,000,000

Air pollution control-Naftagas Gas Unit (NGU) .. . May 25, 1976 1979/1996 8.5% 11,000,000Water supply-Preduzece Vodovod i Kanalizacija Sarajevo .. . May 25. 1976 1981/2001 8.5% 45,000,000Development finance companies-Investiciona Banka Titograd(IBT), Kosorska Banka Pristina (KBP), Privredna BankaSarajevo (PBS), and Stopanska Banka Skopje (SBS) .. . May 28, 1976 1978/1990 8.5% 50,000,000

Zambia (Guarantor)Development finance company-Development Bank of Zambia (DBZ). February 10, 1976 1979/1993 8.5%O 15,000,000

TOTAL of loans to or guaranteed by members . ......... $4,977,100,000International Finance Corporation. ..... ...... .. . April 22. 1976 1979/1996 8.5% 70,000,000

TOTAL .. .. ... . _ ... .... $5,047,100,000

132

IDA Appendices

Page

A Statement of Condition .... ..... .... . . 134

B Statement of Income and Expenses.. . 136

Statement of Transfers from International Bankfor Reconstruction and Development .............. 136

C Statement of Changes in Resources Available for Commitment. 137

D Summary Statement of Development Credits.. 138

f Statement of Voting Power, and Subscriptions andSupplementary Resources. .140

F Notes to Financial Statements. . . . . . 143

REPORT OF INDEPENDENT ACCOUNTANTS.. .. 145

G Statement of Development Credits Approvedduring the Fiscal Year 1975/76 ... 146

133

Statement of ConditionJune 30, 1976 and June 30, 1975Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix F

Assets 1976 1975

DUE FROM BANKSUnrestricted currencies (including interest-bearingdemand deposits $1,190-1976, $44,192-1975) ........................ $ 425,978 $ 314,567

Currencies subject to restrictions-Note A .............................. 61,942 61,461$ 487,920 376,028

INVESTMENTS-Note BObligations of governments and their instrumentalities(at cost or amortized cost; face amount $79,153-1976,$144,157-1975) ................................................. $ 77,061 143,978

Certificates of deposit and other time deposits . .............. 135,408 128,305212,469 272,283

RECEIVABLE ON ACCOUNT OF SUBSCRIPTIONS ANDSUPPLEMENTARY RESOURCES-Note ANon-negotiable, non-interest-bearing demand obligationsUnrestricted ........... ....................................... $ 1,614,021 2,193,742Subject to restrictions .......................... ................... 153,582 164,831

Amounts due on additional subscriptions and supplementary resources .... 375,882 44,123Amounts required to maintain value of currency holdings-Note C ........ 19,323 16,752

2,162,808 2,419,448RECEIVABLES-OTHERInternational Bank for Reconstruction and Development .................. $ 558,443 454,433Purchaser, on accountofeffectivedevelopmentcredits agreed to besold ..... 6,050 5,200Accrued service charges on development credits . ............. 13,337 10,471Accrued interest on investments .................... 1,864 4,118

579,694 474,222DEVELOPMENT CREDITS (see Appendix D) ............................. $10,423,948 8,794,739Less-Development credits approved but not yet effective . . 697,500 785,950Effective development credits (including undisbursedbalance $3,567,462-1976, $3,081,171-1975) ......................... 9,726,448 8,008,789

OTHER ASSETSTranslation adjustments on subscriptions and supplementaryresources-Notes A and C ......................................... $ 127,665 49,112

M iscellaneous .... .......... ........... ........................ 2,427 5,789130,092 54,901

$13,299,431 $11,605,671

134

Appendix AInternational Development

Association

Liabilities, Subscriptions, Supplementary Resources, 1976 1976Transfers and Accumulated Net Income

LIABILITIESAmounts required to maintain value of currency holdings-Note C .......... $ 1,426 $ 9,273Accounts payable and other liabilities ......... 297 8Undisbursed balance of effective development credits (see Appendix D)Held by Association .......................... ........... ...... $3,567,462 3,081,171Agreed to be sold .................................................. 8,438 10,979

3,575,900 3,092,150

Borrowings from Swiss Confederation-Note D ......... ............. ... 73,595 72,727

SUBSCRIPTIONS AND SUPPLEMENTARY RESOURCES(see Appendix E)-Note E ........................ .................... 8,553,148 7,434,182

Payment on account of pending subscription ................ ............ 11

TRANSFERS FROM INTERNATIONAL BANK FOR RECONSTRUCTIONAND DEVELOPMENT (see Appendix B) ... 5.......................... 1,011,640 907,530

ACCUMULATED NET INCOMEBeginning of fiscal year ............................................... $ 89,801 81,781Fiscal year (see Appendix B) ......................... ................. (6,387) 8,020

83,414 89,801$13,299,431 $11,605,671

135

Statement of Income and Expenses Appendix BFor the fiscal years ended June 30, 1976 and June 30, 1975 International DevelopmentExpressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix F Association

July 1-June 30

1975 76 1974/75

IncomeIncomefrom development credits.. . . ............ ..... ...... .. ............ $ 41,455 $33,125Income from investments .......... ..... ............ ...... ........... . ....... 19,177 34,800Exchange adjustm ents ..... ..... .... .. ............. .................. 20 309

Total Income ............ ... ...................... ... S 60.652 $ 68.234

ExpensesManagement fee to the International Bank for Reconstructionand Development. . .......... ..... .. $ 62 772 $ 47,602

Net Operating (Loss) Income ........ ..... ........ ....... ............... $ (2.118) $ 20,632Translation adjustments as a result of currency depreciationsand appreciations ... ......... ........ .................. ...... (4,269) (12,612)

Net (Loss) Income ... ..... ....... .. .................... .......... $ (6 387) $ 8,020

Statement of Transfers from International Bank forReconstruction and DevelopmentFor the fiscal years ended June 30. 1976 and June 30, 1975

Expressedt in United States dollars oir thousands'-see Notes to Financial Statements, Aprendix F

July 1-June 30

1975 76 1974.75

Balance at beginning of fiscal year:Available for general purposes of the Association ............. ........... ........ ........ $ 904,295 $809,020Available for grants for agricultural research and forcontrol of onchocerciasis ............ . ........ ....... . .. .... ...... ....... 3.235 1,800

$ 907,530 $810,820Transfer from the international Bank for Reconstruction and

Development during fiscal year:For general purposes of the Association. . ... ...... 102 200 94,450For research grants for agricultural research and forcontrol of onchocerciasis . ... .... .......... ......... . .......... 7,1nC 5,550

Disbursed to approvec gratnt recipients, .... .... ....... ........ __ ...... (5,890) (3,290)

Balance at end of fiscal year(":Available for general purposes of the Association ...... ....................... ...... $1,CC8,475 $904,295Available for grants for agricultural research and forcontrol of onchocerciasis ................ _ ..... ................ ................ 3,i65 3.235

Totals .... . ...................... ........................ 4... $1,01164 C S907,530

The total accumrulated transfers by way cf grarits from the International Bank for Reconstruction and Development aggregated $1s025OO,0,C00($915,000.n000-1975 of which an aggregate amount of $16,525,000 ($10,705,000-19751 may be used by the Association or had been disbursed forresearch grants. Durinig the fiscal years covered by this statement $1,980,000 '$825,000-19755 previously allocated fo- such grants had reverted to theAssociation hor its general purposes.

136

Statement of Changes in Resources Appendix CAvailable for Commitment AssociationFor the fiscal years ended June 30, 1976 and June 30, 1975

Expressed in United States dollars (in thousands)-see Notes to Financial Statements, Appendix F

July I-June 30

1975 76 1974/75

Resources ProvidedNet (loss) income (see Appendix B). ... . .... ..................... ... ... $ (6,387) $ 8,020Add-Certain translation adjustments as a result of currency depreciationsand appreciations ....... ........ .............................. ...... 867 11,762

(Decrease) increase in resources provided by operations . .............................. $ (5,520) $ 19,782,From Members:

Subscriptions, unrestricted . .................. ......... ... $ 2,670 36,235Supplementary resources. ...... . ........ ..... ....... .. -4,007,860Adjustment of resources provided in prior fiscal years as a result of currencydepreciations and appreciations ............. ..... ....... .... (213,512) (7,177)

(Decrease) increase in resources provided by members . . . (210,842) $4,036,918Transfers from the International Bank for Reconstructionand Development ..................... .. 104,180 95,275

Repayments of development credits . ............... ..... ...... . .. .. 13,143 10,641Grant participations in development credits .................................... 5,350 12,200Cancellations and refundings of development credits ..... ...................... .... 7,547 8,329

Total (decrease) increase in resources provided .. .... ... . ..... $ (86.142) $4,183,145

Resources UsedDevelopment credit agreements approved .... $....... . .... ... $ 1,655,250 $1,576,150

Net (Decrease) Increase in Resources Availablefor Commitment ........................................................ $(1,741,392) $2,606,995

Resources Available for CommitmentBeginning of fiscal year .. .... ...... .... ................. .... ........ 2,776,891 169,896End of fiscal year $...... .... .......... ........ ........... ... $1,035,499 $2,776,891

Composition of Resources Available for Commitment

Unrestricted currencies ....... .. ......... _...... ......... ...... ..... $ 425,878 $ 314,567Investments ............. ...................... ... ....................... 212,469 272,283Unrestricted receivables on account of subscriptions andsupplementary resources ...... ........ .... . ..... . 2,005,896 2,252,292

Receivables-Other ................. . ........... . , ......... ... ..... 576,63 0 470,987Other assets. . .. ......................... ......... 82,418 17,541Subscriptions and supplementary resources not yet due ................. .... ..... .. . 2,007,305 3,336,594Less-Undisbursed development credits (including development creditsnot yet effective) and accounts payable ...... ... . .................. . .... .. (4,275,097) (3,887,373)

Totals ....... ...... . ............ $....... ........ ..... $1,035,499 $2,776,891

137

Summary Statement of Development CreditsJune 30, 1976 and June 30, 1975

Expressed in United States doltars (in thousands)-see Notes to Financial Statements, Appendix F

June 30, 1976

Effective development credits held by Association Percent oF totalDevelopment effective and

Mltembers in whose credits approved non-effective

territories development Disbursed Undisbursed but not yet development

credits have been made"r) portion z) portiarr") Total effective(4' credits

Afghanistan ..... . . .. ..... . . $ 19,718 $ 53,116 $ 72,834 $ 25,000 .94Bangladesh ..... ............... 379,822 246.602 626,424 41,000 6.40Benin . ... ........ .... ......... ..... 22,612 4,895 27,507 13,000 .39Bolivia .... ........................ 52,012 12,716 64,728 - .62Botswana ........................ 13,285 2,690 15,975 - .15

Burma .... ... 26,305 76,195 102,500 30,000 1.27Burundi ................. ............. 4,040 4,254 8,294 12,700 .20Cameroon .. .......... .......... 58,712 29,500 88,212 18,000 1.02Central African Republic . .......... 9,814 3,563 13,377 - .13Chad . ... ............................ 13,540 16,147 29,687 - .29

Chile ... ............. ......... ..... 21,794 - 21,794 - .21China . .. ...... 15,108 - 15,108 - .15Colombia ... ..... 22,368 - 22,368 - .21

Congo, People's Republic of the . ... 16,322 5,572 21,894 - .21Costa Rica ........... ............ 5,219 - 5,219 - .05

Dominican Republic ................. ..... 9,895 12,187 22,082 - .21Ecuador . .. 29,806 8,684 38,490 - .37Egypt, Arab Repubiic of ................. ,. 112,400 128,536 240,936 40,000 2.70El Salvador ............. ... ..... .. 17,338 4,275 21,613 - .21Ethiopia ............... .. 91,471 201,147 292,618 - 2.81

Gambia, The ............. . 4,931 982 5,913 8,100 .13Ghana .............................. 48,312 50,949 99,261 - .95Guinea ..... ............. .. 373 20,627 21,000 - .20Guyana .. ............. ... 4,949 8,696 13,645 - .13Haiti .. ...... 14,776 21,129 35,905 16,000 .50

Honduras .... ... ........... 29,615 5,952 35,567 14,000 .48India ...... ......... 2,948,080 1,236,718 4,184,798 168,000 41.76Indonesia. . 370,983 202,354 573,337 - 5.50Ivory Coast .................... 2,103 5,397 7,500 - .07Jordan ............................. 35,863 26.045 61,908 10,000 .69

Kenya ............. . ....... .. 89,041 64,496 153,537 - 1.47Korea . . .................... 97,931 17,200 115,131 - 1.10Lesotho.. ....... ................. 9,133 5,388 14,521 5,500 .19Liberia ... ...... ..................... 5,076 11,924 17,000 - .16Madagascar ..... ............ 59,907 32,228 92,135 22,000 1.10

Malawi ....... ............ 67,504 35,318 102,822 - .99Mali .... ............. 48,006 48,021 96.027 - .92Mauritania .................... 14,940 19,002 33.942 - .33Mauritius .... .... 9,338 11.081 20.419 - .20

138

Appendix DInternational Development

Association

June 30, 1976

Effective development credits held by Association Percent of totalMembers in whose ~ ~~~~~~~~~~~~~~~~~~~~Developmrent eftective and

Members in whose credits approved non-effectiveterritories development Disbursed Undisbursed but not yet developmentcredits have been made'l) portion") portion'

3) Total effective(4) credits

Morocco .. ....... .................... $ 33,807 $ 18,751 $ 52,558 $ - .50Nepal ............................... 7,041 51,753 58,794 8,000 .64Nicaragua ............................... 16,078 7,393 23,471 - .23Niger ............................ 20,246 3,532 23,778 31,500 .53

, Nigeria . ......................... ... 36,419 2,834 39,253 - .38

Pakistan .............................. 506,437 93,986 600,423 113,600 6.85Papua New Guinea .... ............. .... . 22,247 4,606 26,853 - .26Paraguay........... ............ 28,084 17,240 45,324 - .44Philippines ........ .............. 23,168 9,048 32,216 - .31Rwanda ............ ..... . .. . 18,105 21,964 40,069 - .38

Senegal .......... . .... . 47,892 38,895 86,787 10,500 .93Sierra Leone ...... . 11,127 12,157 23,284 - .22Somalia . ..... ..... ..... 32,699 26,650 59,349 18,000 .74Sri Lanka ........................... . 40,694 39,853 80,547 - .77

Sudan ...................... 49,768 126,542 176,310 13,000 1.82

Swaziland ........ ............ .... 3,319 4,908 8,227 - .08Syrian Arab Republic ... .......... 12,272 36,167 48,439 - .46Tanzania ............... ....... 93,866 115,031 208,897 6,000 2.06Thailand .... ......... . ........ 6,560 25,440 32,000 - .31Togo. . ........ ..... ....... .. 9,002 10,013 19,015 9,500 .27

Tunisia . ........... 59,612 10,647 70,259 - .67

Turkey .. .......... ....... 150,619 44,166 194,785 - 1.87Uiganda .............................. 41,123 6,908 48,031 - .46Upper Volta .. 15,494 31,911 47,405 9,400 .55Western Samoa . . .......... 1,773 2,627 4,400 - .04

Yemen Arab Republic ....... ......... 16,183 67,367 83,550 5,200 .85Yemen, People's Democratic Republic of ..... 7,297 23,594 30,891 7,000 .36Zaire ........... ...... . .... 45,612 79,893 125,505 42,500 1.61

Tota s June 30, 1976 $6,158,986 $3.567,462 $9,726,448 $697,500 10C.10

Totals June 30, 1975 . . $ 4,927,618 $3,081,171 $8,008,789 $785,950

02) Alt development credits had been made to m ember governments or to the gevernment Of a territory of a member.2) The disbursed portions at June 30, 1976 and June 300 1975 include adljustments 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 amounts did not include $8,438,000 ($10,979,000-1975j of grant participations. Of the undisbursed balance at June 30. 1976 the Association

had entered into irrevocable commitments to disburse $20,974,000 i$9,112,000-1975).A' As at June 30, 1976, agreements in the amount of $506IO0O,O0O providing for these development credits had been approved but not sigred. In addition,

agreements for development credits in the amount of $591,400,000 had been signed, but the developmentcredits do not become effective and disburse-oents thereunder do not start until the borrower takes certain action and furnishes certain documents to the Association.

139

Statement of Voting Power,and Subscriptionsand Supplementary ResourcesJune 30, 1976Expressed in thousands ot units of currency-see Notes t0 Financial Statemients, Apperdrxo

Amounts ofsubscriptions and

Amounts ot subscripitions supplementaryano .supplementary' resources ressources under

through the third the fourth Total subscriptions andVoting power replerrishbmnot0') re pleonihment2r su pplementary resaurces(')

Espressed in Expressed Expressed ExpiessedUnited Status il ir indollars of the current curreat current

weigh t and tine- U nited U nited UnitedNumber Percent ness in ettect ono States Staten States Percenit

Rlembers'l ot notes ot total January 1, 1960 dollars dollars doltsrs(') of total

Part I MembersAustralia.. .... 40,550 1.53 $ 11 1,980 $135,087 $ 75.578 S 210,665 2.00Austria ................. 16,842 .64 34,560 41.691 29,944 71,635 .68Belgium~ .. . 32,052 1 .21 77,100 93,733 7 1,508 165,241 1.56Canada ............. . 105,286 3.98 304,530 367,369 282,468 649,837 6.15Denmark.. ...... 27,257 1.03 70,840 85,458 50,662 136,120 1.29Finland.... ........... 13,701 .52 22,448 27,080 24,056 51, 136 .48France................. 1 12,81 7 4.27 362,032 436,737 228,422 665,159 6.30Germany, Federal Republic of. -74,725 6.61 476,560 574.897 484,680 1,059.7577 10.03Iceland ........ ... 5,931 .22 550 664 628 1,292 .11Ireland.... ......... .. 8.080 .31 7,030 8,480 5,655 14,135 .13Italy .......... , 21,239 .80 193,240 233, 115 .- 233,1 15 2.21Japan. .... .. 136,039 5.15 285,320 344,196 441.839 7 86,035 7.44Kuwait 14,03 1 .53 22,920 27,650 26,762 54,412 .52Luxembourg ...... 6,427 .24 2,550 3.076 2,157 5,233 .05Netherlands. .... .. 52,693 1.99 141,080 170,192 1 24,374 294566 2.79New Zealand......o 8,410 .32 - - 14,807 14,807 .14Norway. 22,463 .85 49,320 59,497 49,519 109,016 1.03South Africa. 10,725 .41 20,080 24,223 7,016 31,239 .30Sweden....72,225 2.73 206,225 248,779 171,907 420,686 3.98United Kingdom....... 213,176 8.06 694.300 837,568 3 81,253 1,218,821 11.54United States .. ... .. 626,654 23.70 2,072,290 2.499,904 1,500,000 3.999,904 37.87Totals .. _ . .... .. 1,721,3 23 65.11 $5,155,555 $6~219,396 $3,973,235 $10,192,631 96.50

Part 11 MembersAfghanistan. .... 7,771 .29 $ 1,049 S 1,265 $ 39 S 1,304 .01Algeria ...... 14,335 .54 4,186 5,050 135 5,185 .05Argentina. .. .... 14,677 .56 19,720 23,789 - 23,789 .23Bangladesh........ 17,274 .65 5,589 6,742 105 6.847 .06Benin ... . 600 .02 500 603 - 603 .01Bolivia .... ...... 2,473 .09 1,101 1,328 -1,328 .01Botswana .. .. II . . 1,859 .07 166 200 - 200 )Brazil ........... 46,526 1.76 19,720 23,789 573 24,362 .23Burma ......... 9,996 .38 2,099 2,532 54 2;586 .02Burundi. .. ... 7,246 .27 790 953 24 977 .01Cambodia. ..... 7,826 .30 1,060 1.279 5 1,284 .01Cameroon.. . .... 7,771 .29 1.~049 1,265 33 1,298 .01Central African Republic ... 6.685 .25 519 627 16 643 .01Chad_._.. .... 2,093 .08 519 627 -627 .01Chile ..... ..... 1,206 .15 3,530 4,258 - 4,258 .04China. . ...... 1,247 2.70 31,436 37.923 1,122 39,045 .37Colombia .... 13,289 .50 3,717 4,483 161 4,644 .04Congo, People's RepUiblicof the 6,685 .25 5i9 627 16 643 .01Costa Rica.......... 6,023 .23 208 251 7 258 4Cyprus ....... 7,246 .27 790 953 23 976 .01

140

Appendix Einternational Development

Association

June 30, 1976Expressed in thousands ot units of currency-see Notes to Financial Statements, Appendix F

Amounts ofsubscriptions and

Amounts oF subscriptions supplementaryand supplementary resources resources under

through the third the fourth Total subscriptions anidVoting power replenishment(' replenishment(2) supplementary resources,'

Expressed in Expressed Expressed ExpressedUnited States in in indotlars of the current current current

weight and fine- United United UnitedNumber Percent ness in effect on States States States Percent

MembersO" of votes of total January 1, 1960 dollars dollars dollars53) of total

Part II Members (continued~Dominican Republic .6,483 .25 $ 435 $ 525 $ 60 $ 585 .01Ecuador .2,200 .08 676 815 - 815 .01Egypt, Arab Republic of 16,620 .63 5,277 6,366 192 6,558 .06El Salvador ..... . .. ..... 6,244 .24 331 399 11 410 4)Equatorial Guinea .1,967 .07 332 401 - 401 (4)

Ethiopia .6,687 .25 539 650 19 669 .01Fiji .2,130 .08 581 701 - 701 .01Gabon .2,093 .08 519 627 - 627 .01Gambia, The. . 6,182 .23 277 334 8 342 (4,

Ghana. 10,711 .41 2,452 2,958 66 3,024 .03Greece .11,059 .42 2,618 3,158 76 3,234 .03Grenada .5.782 .22 94 113 3 116 (4)

Guatemala. 6,474 .24 415 501 15 516 A)Guinea .7,771 .29 1,049 1,265 36 1,301 .01Guyana .7,361 .28 842 1,015 26 1,041 .01Haiti 7,246 .27 790 953 28 981 .01Honduras. 6,242 .24 311 376 13 389 (4)India .93,187 3.52 41,919 50,569 1,292 51,861 .49Indonesia ... ... . .. 29,692 1.12 11,531 13,911 412 14,323 .14Iran .15,455 .58 4,717 5,690 161 5,851 .06Iraq .7,246 .27 790 953 28 981 .01Israel. 9,386 .36 1,745 2,106 560 2,666 .03Ivory Coast .7,771 .29 1,049 1,265 33 1,298 .01Jordan .6,242 .24 311 376 10 386 (4,Kenya .9,240 .35 1,745 2,106 51 2,157 .02Korea .8,350 .32 1,309 1,579 39 1,618 .02Laos .6,685 .25 519 627 3 630 .01Lebanon .590 .02 450 543 - 543 .01Lesotho. 5,950 .23 166 200 5 205 4;Liberia .2,273 .09 790 953 - 953 .01Libyan Arab Republic, 7,771 .29 1,049 1,265 37 1,302 .01Madagascar .702 .03 1,010 1,218 - 1,218 .01Malawi .7,246 .27 790 953 25 978 .01Malaysia .11,059 .42 2,618 3,158 85 3,243 .03Mali. 2,346 .09 904 1,090 - 1,090 .01Mauritania 6,685 .25 519 627 17 644 .01Mauritius .7,480 .28 924 1,114 26 1,140 .01

'Mexico .2,248 .09 8,740 10,543 - 10,543 .10Morocco .13,271 .50 3,667 4,424 124 4,548 .04Nepal .6,685 .25 519 627 15 642 .01Nicaragua. 6,242 .24 311 376 11 387 (4)Niger(5) . .... ....... ..... 2,093 .08 519 627 - 627 .01Nigeria. 4,057 .15 3,491 4,211 - 4,211 .04

(continued)

141

Statement of Voting Power, Appendix Eand Subscritions ~~~~~~~~~~~~~~~~~International DevelopmentandSubscri~ptinsAssociation

and Supplementary Resources (oriud

Junre 30 1976Expressed in thousands of units of currency-see Notes to, Firiarcial Statements, Appendix F

Amounts ofsabscri ptionsa od

Amosuits of subscriptioms supplemnentaryand sopplementary resou rces resources under

through the third the fourth Total subocriptions and -

Voting 500:e5 replenioihment.r enfeoleishmenty suppslementary resources(')

ExPressno is Expressed Expressed EopressedUnined States ini ii IIIdollars of the current current curront

wveight sod tione- United Uinited UnitedNauriber Percent ness in effect on Stoates States States Percent

fanembers(1 ) of votes of total Janoory 1, 1960 dodars dollars dollarsrs of totalI

Part 11 members "cortinmed~Oman. ............. 6,244 .24 $ 331 5 399 5 11 $ 410Pakistan................27,531 1.04 1 0, 582 12,765 376 1 3, 14 1 .12Panama . .. ...... 5,6517 .21 21 25 1 26 )Papua New Guinea .... 7,476 .28 894 1,077 28 1, 105 .0 1Paraguay ........... ..... 6,242 .24 3 11 3 76 11 387 (4)Peru...t . 854 .03 1.7 70 2, 13 5 -2,1 35 .02Philippines. . 16, 583 .63 5;296 6,388 272 6,660 .06Rwanda. ........... .. 7,246 .27 790 953 25 918 .01ISaudi Arabia. ............. 1,240 .05 3,700 4,463 - 4,46 3 .04Senegal . ~., ... 9,240 .35 1,745 2, 106 55 2, 16 1 .02Sierra Leone ...... ...... 7,246 .27 190 953 20 973 .01ISomalia. .... .. 7,246 .27 790 953 28 98 1 .0 1Sooth Viet-Nam ..... 8,889 .34 1,'569 1,1893 38 1,93 1 .02Spain ....... 29,746 1.13 12,590 15,188 11,416 26.604 .25Sri Lanika , ..... . 12,166 .46 3,148 3,797 84 3,881 .04Sudan....... 7,771 .29 1,049 1,265 33 1.298 .01Swaziland .... . .... 6,299 .24 332 401 9 410 4Syrian Arab Repdblic. . .. 7,651 .29 987 1,19 34 1,224 .01Tanzania .......... 2,904 .1 1 1,745 2,106 - 2,106 .02Thailand. ..... 12,1 66 .46 3,148 3,797 110 3,907 .04Togo-.....7246 .27 790 953 25 978 .01Trinidad and Tobago .... 720 .03 1,3 50 1,629 - 1,629 .02Tunisia. . . .2,793 .11 1,569 1,893 -. 1.893 .02Tuarkey ........ 18,229 .69 6.086 7,341 287 7,628 .07Uganda. .... 9,240 .35 1,745 2,106 51 2,157 .02Upper Volta ...- .. 6,685 .25 519 627 16 643 .01Western Samoa ... ... 5,782 .22 94 113 2 115 4Yemen Arab Republic . .. 6,533 .25 446 539 16 555 011Yemen, People's Dem. Rep. of. 8,175 .31 1,226 1479 44 I,523 .01Yugoslavia .1...5,57 5 .59 8,080 9.747 4,127 13,874 .13Zaire. ....... .. 3,823 .14 3,138 3,785 -. 3,785 .04Zamnbia ........... 1,038 .04 2,690 3,245 - 3,245 .03Totals ... ........ 922,318 _34.89 $ 287,228 3 346.499 $_ 22, 9-19 $ 369,418 3.50GRAND TOTALS ....... 2,643,641 100.0C $5, 4 427 83 3 _6,565,895 $3, 9 96,1 54 $10,562,049 1 00.00

Sen Note A, Appendix F, fon as exslaRation of the twon categor;es of memhers.n See Sumnmary of Significant Accouantiog afld Relateo Policien, Appendix F, ton cetails rega-ding translation into current United States dollars of sos-scniptions 000 suPplemenrtary resources provided by members.lnclnudesamounrts aggregating$2,3t4,783,000 eqoivalent in current United States dollars receivable from mem-bers, of which $375,882,000 equivalent noonpast doe at Juire 30, 1976 and the balarce, $2.008,901,0o0 equivalert, mas not yet due.

.0Less than tHO5 percent.m.The equivalent of $11,000 in current United States dollars had been received from Ntiger orr account of ins additirnal subsc.niption unrder the fourth replein-

ishment pending formnal notification ot its yarticipatior.

142

Notes to Financial Statements Appendix FInternational Development

Association

June 30, 1976 and June 30, 1975

Summary of Significant Accounting and the Association in their own currencies. The Articles of AgreementRelated Policies of the Association and subsequent replenishment agreements pro-

vide that the currency of any Part 11 member paid in by it may notTranslation of Currencies be used by the Association for projects financed by the AssociationThe 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 ofAssociation's financial position and the results of its operations for $61,942,000 ($61,461,000-1975) under the heading Due fromthe convenience of its members and other interested parties. Banks, $156,912,000 ($167,155,000-1975) included under theThe Association is an international institution which conducts its heading Receivable on Account of Subscriptions and Supplementaryoperations in the currencies of all of its members. The Association's Resources and $47,636,000($37,352,000-1975) included in Trans-policy is to translate its assets and liabilities, in currencies other lation Adjustmentson Subscriptions and Supplementary Resourcesthan United States dollars. at market rates of exchange to the under the heading Other Assets were subject to such restrictions.United States dollar at the end of each fiscal quarter. Note B-InvestmentsSubscriptions and supplementary resources provided by initial The market value of investment securities was $212,493,000subscriptions and by the first three replenishments of the Associa- ($272,330,000-1975) compared with a cost of $212,469,000tion's resources which are expressed in terms of the United States ($272.283,000-1975), including investments not traded in the mar-dollar of the weight and fineness in effect on January 1, 1960 (the ket which were valued at their cost of $27,055,000 ($120,542,000-1960 dollar), are translated into current United States dollars atthe 1975), The item Investments included securities purchased underrate of $1.20635 per 1960 dollar. Subscriptions and supplementary agreements to resell amounting to $102,000,000 at June 30, 1975.resources provided by the fourth replenishment, which are ex-pressed and payable in the members' currencies, are translated Note C- Maintenance of Value(1) at market rates of exchange at the end of each quarter foramounts receivable and for amounts received and not yet disbursed Article IV, Section 2 of the Association's Articles of Agreement pro-and (2) at market rates of exchange on the dates of disbursement in vides for the maintenance of the value, as of the time of subscrip-respect of those amounts which have been disbursed. Translation tion, of the Association's currency holdings or demand obligationsadjustments relating to subscriptions and supplementary resources substituted therefor representing ninety percent of each member'sare accounted for as described in Note C, all other translation ad- initial subscription, only so long as and to the extent that suchjustments are included in the determination of net income. Income currency has not been initially disbursed or exchanged for theand expenses are translated at an average of the market rates of currencyofanothermember. This Section requires:(1)thememberexchange in effect during each quarter. to make additional payments to the Association in the event that

the par value of its currency is reduced or the foreign exchangeInvestments value of its currency has, in the opinion of the Association, de-preciated to a significant extent in its territories and (2) the Associ -Investment securities are recorded at cost or amortized cost. Gains ation to reimburse the member in the event that the par value ofor losses on sales of investments, measured by the difference its currency is increased or the foreign exchange value of its cur-between average cost and proceeds of sales, are recorded as an rency has, in the opinion of the Association, appreciated to aelement of income from investments. significant extent in its territories.

Development Credits The provisions of Article IV, Section 2 have by agreement beenThe principal amounts disbursed and outstanding and the accrued extended to cover adsditionalhrsubgshc thPe third replenishment butservice charges are denominated in United States dollars of the are not applicable to those of the fourth replenishment.weight and fineness in effect on January 1, 1960. The equivalent isrepayable by the borrowers in currencies which the Association On June 19, 1972, the Executive Directors resolved that for alldetermines to be freely convertible or freely exchangeable by the members that established central rates for their respective cur-Association for currencies of other members of the Association, rencies, pending establishment of new par values for their cur-except that such principal amounts would be reduced if (1) there is rencies, maintenance of value obligations be settled on the basisa uniform proportionate reduction in the par values of the cur- of those central rates. It was further decided that with respect torencies of all members of the International Monetary Fund or (2) any member currency functioning under a system under which thethe Association so decides because of a substantial reduction in the market rate is not confined within announced intervention margins,value of one or more major currencies of members, maintenance of value obligations would be determined on the basis

of market rates in effect on the respective dates of disbursementAdministrative Expenses of such currency, but only for the amounts disbursed.Administrative expenses of the Association are initially paid by the Where market rates of exchange are not related to par values orInternational Bankfor Reconstruction and Development(the Bank). central rates as in the cases of a majority of the members, andThe Association reimburses the Bank for such expenses by pay- there are differences between market rates of exchange and thement of a management fee representing its share of the adminis- rates at which undisbursed subscriptions and supplementary re-

-trative expenses incurred by the Bank. sources of members through the third replenishment of theAssociation's resources have been paid or are payable, such differ-

Note A-Restricted Currencies ences are included in Translation Adiustments on Subscriptions andThe membership of the Association is divided into two categories: Supplementary Resources under the heading Other Assets. The(1) Part I members, which pay all subscriptions and supplementary amount thus established, $127,665,000 ($49,112,000-1975), con-resources provided to the Association in convertible currencies notional payables $4,214c000 ($46,973,000-1975). Maintenance ofwhich may be freely used or exchanged by the Association in its noialaybe$42,00(69700-95.Mntacefoperations; may beafret11memrbeers, awhgich pYay ten percent of their value obligations in respect of such undisbursed amounts will be

initial subscriptions in freely convertible currencies and the re- determined upon their disbursement.maining ninety percent of their initial subscriptions and all addi- In view of the proposed amendments to the Articles of Agreementtional subscriptions and any supplementary resources provided to of the International Monetary Fund (the Fund) as described in

Conatinued)

143

Notes to Financial Statements reanunueti Appendix FInternational Development

Association

June 30, 1976 and June 30, 1975

Note D (continued)

Note E, the timing of the establishment and settlement of mainte- in forty annual instalments commencing on July 1, 1979. in the casenance of value obligations is uncertain, except that, as mentioned of the first loan, and November 8, 1983, in the case of the secondabove, maintenance of value obligations for applicable currencies loan. The first ten instalments of each loan will be .0% of the re-disbursed are being established at the date of disbursement. spective principal amounts and the remaining thirty instalments

will be 3% of such principal amounts.Note D-Borrowings from Swiss ConfederationThe Association has entered into agreements to borrow a total of Note E-Subscriptions and Supplementary ResourcesSwF 182 million (US equivalent $73,595,000) from the Swiss Con- Subscriptions and supplementary resources have been translatedfederation. The first loan for SwF 52 million was made in fiscal as set forth in Translation of Currencies under the Summary ofyear 1967 and the second loan for SwF 130 million was made in Significant Accounting and Related Policies. As at June 30, 1976fiscal year 1973. The loans carry no interest and are each repayable and 1975 these were as follows:

1976 1975

Expressed in United States Currencyfl thousand.s

Initial subscriptions and first three replenishments:Subscriptions (United States dollars of 1960 $1,064,779-1976,$1,063,664-1975) .......... . ... ...... . .. $1,284,496 $1,283,150

Supplementary resources(United States dollars of 1960$4,378,004-1976, $4,378,004-1975) . .... .... ... ... 5,281,399 5,281,399

$6,565,895 6,564,549Less-Portion for which payment is not yet due .... 239 526

16.565.656 6,564,023

Fourth replenishment:Subscriptions. .... .. ... ..... .... . $ 32,969 33,435Supplementary resources ............... ............ ... . 3,963,185 4,175.793

$3,996,154 4,209,228Less-Portion for which payment is not yet due .. .... ..... 2,008,662 3,339,069

1.987 492 870,159Totals.. ...... ... .. . .... . $8.553,148 $7,434,182

The aggregate of $2,008,901,020 not yet due, will be due as follows:

Fiscal ears amounorts

rin thousands,

1977.. $1,181,4741978. ... ..... .. .. ........ .... 452.3221979 ..... .. ..... ... . .. .1.. .. 375.105

Total ....... ..... .. . . $2,008,901

On April 30, 1976. the Board of Governors of the Fund approved 1, 1960. The Association has under consideration the effect ofproposed amendments to the Fund's Articles of Agreement under these amendments with respect to the unit of denomination of itswhich, when they become effective, gold will be abolished as a subscriptions and supplementary resources. A restatement of thecommon denominator of the monetary system, currencies will no Association's subscriptions and suppilementary resources in recog-longer have par values, and ail computations relating to currencies nition of the changes described above would result in adjustmentcf membersfor the purpose of applyingthe provisions ofthe Fund's of the items Subscriptions and Supplementary Resources andArticles will be made on the basis of the Specia! Drawing Right Translation Adjustments on Subscriptions and Supplementary(SDR). The value of the SDR expressed in terms of United States Resources should the subscriptions and supplementary resourcesdollars is based upon the weighted relative va ues of a number be denominated in any unit other than the current United Statesof leading currencies, inciuding the United States dolhar. dollar (using the basis of $1.20635 for translating 1960 dolars toWhen the amendments to the Fund's Articles of Agreement become current dollars). It is not expected that any change made wouldeffective it will no ilnger be possible to determine the value of the have a material effect on the financial position or results of opera-United States dollar of the weight and fineness in effect on January tions of the Association.

144

Report of Financial StatementsIndependent Accountants Covered by the

Foregoing Report1801 K STREET, N.W.

WASHINGTON, D.C. 20006July 30, 1976

ToINTERNATIONAL DEVELOPMENT ASSOCIATIONWASHINGTON, D.C.

In our opinion, the accompanying financial statements (Appendices Statement of Condition . ...... . Appendix A (page 134)A through F) present fairly, in terms of United States currency, the Statement of Income and Expenses .. ..... Appendix B (page 136)financial position of International Development Association at June30, 1976 and 1975, the results of its operations and the changes in Statement of Transfersfinancial position for the years then ended, in conformity with gen- from International Bank forerally accepted accounting principles consistently applied. Our Reconstruction and Development.. . Appendix B (page 136)examinations of these statements were made ir accordance with Statement of Changes in Resourcesgenerally accepted auditing standards and accordingly included Stable or Changes m Resourcessuch tests of the accounting records and such other auditing proce- Available for Commitment.Appendix C (page 137)dures as we considered necessary in the circumstances. Summary Statement of

Development Credits. Appendix D (page 138)

Statement of Voting Power,PRICE WATERHOUSE & CO. and Subscriptions and

Supplementary Resources. Appendix E (page 140)

Notes to Financial Statements . '. .. Appendix F (page 143)

145

Statement of Development CreditsApproved during the Fiscal Year 1975176(US dollars)

Date of Service PriflcipalPurpose and borrowver aPproval Mauturities charge amount

AfghanistanKhanabad irrigation (supplement) ... .... ........ January 6, 1976 1981 /2020 Y4 % $ 10,000,000Electric power ....... ... .............. May 4, 1976 1986/2025 1/4 % 10,000.00Livestock 11.. .. .................. June 24, 1976 1986S/12026 1/4% 15,000,000

BangladeshInland water transport (supplement). .......... .. September 16, 1975 1984/2023 u/4 % 4,600,000Import program IV ~ . . .................. October 28, 1975 1986,'/2025 14 % 100,000,000Karnafuli irrigation. .~.~.. ....... .. ...... January 20, 1976 1986/2025 3/4% 22,000,001Agricuiltural and rural training ... .... .... .... March 18, 1976 1986 /'2025 Y4%F 12 000,10007Technical assistance I1....... .... ......... April 6, 1976 1986712026 14% F 7,500,000Deve~opmentfinance company-Bangladesh Shilpa Bank (BSB). .. May 20. 1976 1986 ;2026 14% 25,000,000Rural development. .~.....~......... ....... May 20, 1976 1986:12026 14 % 16,000,000

Benin, People's Republic ofHighways 11 (supplement).. ................. March 2, 1976 1983.112023 1/4%7 9,000,000

BurmaLivestock improvement .. .... ....... .. December 23, 1975 1986.,2025 /4 % 7,500,000Lower Burma paddyland development .............. June 15. 1976 1986</2026 1/4% 30.000,000

BurundiCoffee improvement II.. .. .............. November 18, 1975 1986",2025 Y4 % 5,200,000Technical assistance ... ... .. ...... February 17, 1976 198962025 14% 1,500.000Fisheries development ........ .. ..... April 20, 1976 1986/2025 1/4% 6,000,000

CameroonSinaI and medium-scale eniterprise........... .... July 0, 1975 1985,2025 Y4 % 3,000,000Highways 11 (supplement). ............. March 2, 1976 1983/2023 1% 15,000,000

ChadLake Chad polders irrigation ....... ............ November 11, 1975 1986..'"2025 ~44% 5,000,000

Egypt, Arab Republic ofDevelopment finance company-Bank of Alexandria (BOA) 11.... July 15, 1975 19851,'2025 3-4 % 25,000,000Upper Egypt dorainage I I ................... June 8, 1976 19861/2026 14% 40,000,000

EthiopiaRangelands development. . ...... . Decemrber 23, 1975 1986,72025 1/4 % 27 .000,000

Gambia, TheTouris sin.... ......... ..... December 30j, 1975 1986,'/2025 1,4%V 4,000,000Rural development ........... J une 15, 1976 1986./2026 1/4 % 4,100,000

GhanaHighways II............... ........ December 23, 1975 1986/2025 14% 10,000,000

GuineaHighways-Road maintenance . .......... December 23, 1975 1986, I2025 3/4 % 14,000,000

HaitiEducation .. . ..... _............... February 24, 1976 1986.2025 Y4 % 5,900,000Electric power .. .. .............. . .. June 17, 1976 19861,2026 14%7 16,000,000

HondurasAgricultural credit .......... .. ..... ... May 18, 1976 1986/2026 1/4%F 14,000,000

IndiaRural electrification. ..... ............... July 8, 1975 1985,/2025 1/4%Y 57,000,000Railways XiIII............ .... .. August 19, 1975 1985 '/2C25 14%F 110,000,000Uttar Prndesh water supply and sewerage ... ...... August 19, 1975 1985,2025 14%F 40,000,000Fertilizer industry. .. ~........... ...... December 16, 1975 19862025 4 % 105.000,000Forestry techncal assistance....... .... ... December 30. 1975 1986 /2026 1/4%7 4,000,000.Electric powver IV. .,_ . ................. January 13, 1976 1986,/2025 1X4%Y 150,000,000Cotton development ............... .... January 27, 1976 1986/2026 /4 % 18,000,000Industrial imports Xi....................... February 24, 1976 1986/2025 1/4%Y 200,000,000

JordanTourism ..... ......... .......... June 8, 1976 1986/2025 Y4 % 6,000,000Development finance company, .. ............... Jane 17, 1976 1986,7/2025 IN% 4,000,000

LesothoHighways 11I.... ....................... March 2, 1976 1986/2025 1/4%7 5,500,000

LiberiaLofa County agricultural development................ J uly 22, 1975 19851/2021 14 % 6,000,000

MadagascarHighways IlIl (supplement).. ................... Septemnber 16, 1975 1983 /2022 1/4%Y 5,600,000Highways IV. . ...... ..... ...... June 15, 1976 1986,712026 40~% 22,000,000

146

Appendix GInternational

Development Association

Date of Service PrincipalPurpose and borrower approval Maturities charge amount

MalawiEducation It ......................................... ....... November 11, 1975 1986/2025 Ya75 $ 11,600,000

Malillighways III ....................................... ......... December 11, 1975 1986/2025 '/4%% 10,000,000

MauritaniaNouadhibou port improvement ... ...... ................ . October 28, 1975 1986/2025 t/0 % 8,000,000

NepalKiulekhani hydroelectric ........................................ December 23, 1975 1986/2025 3 /4%Y 26,000,000Rural deveiopment .... ...................... ........... February 24, 1976 1986/2025 a%% 8,000,000

NigerRural development ..................................... ..... December 11, 1975 1986/2025 3 /% o 10,700,000Highways Il .......................... ..................... February 17, 1976 1986/2025 /4a% 15,600,000Telecommunications ..................... ............. June 3, 1976 1986/2026 3/4 % 5,200,000

PakistanTarbela Dam (supplement) ................... .................... July 22, 1975 1985/2025 3 /4% 8,000,000Seeds .................. ............................. March 16, 1976 1986/2025 Y4%o 23,000,000Program credit ........................... ..................... May 18, 1976 1986/2026 %% 50,000,000Lahore water supply and sewerage il . . .. May 18, 1976 1986/2026 3 4% 26,600,000Khaipur tile drainage and irrigation ............ .................... June 24, 1976 1986/2026 '/4% 14,000,000

ParaguayPreinvestment studies ............. ............................ August 21, 1975 1985/2025 '/4% 4,000,000

RwandaHighways (supplement).......... ............. ....... .... December 18, 1975 1980/2020 Y4/% 9,500,000

SenegalTerres Neuves agriculture and resettlement ii ................ ....... J u ly 8, 1975 1985/2025 3/4% 2,000,000East Senegal livestock ............................. ............... June 3, 1976 1986/2026 3/4% 4,200,000Sedhiou rural development 11 .......I............... .. June 22, 1976 1986/2026 34% 6,300,000

Sierra LeoneEducation 11 ............. ................... ............. July 22, 1975 1985/2025 /4% 7,250,000

SomaliaMogadiscio port extension ............... ..... September 23, 1975 1985/2025 3/4% 5,200,000Drought rehabilitation. ..................... ............. .... April 13, 1976 1986/2025 Y/4% 8,000,000Northwest region agricultural development ............... ..... June 3,1976 1986/2025 3 /4% 10,000,000

Sri LankaAgriculture ................................................ December 11, 1975 1986/2025 3/4 % 25,000,000

SudanDevelopment finance company II .............. ....... ........ October 28, 1975 1985/2025 3/4% 7,000,000Technical assistance ................................... . February 17, 1976 1986/2025 Y4% 4,000,000Domestic aviation... ............................ ................ June 15, 1976 1986/2026 3 /4% 9,000,000

TanzaniaDairy development ............................... ....... . July 1, 1975 1985/2025 Y/4% 10,000,000Technical assistance ............... ...................... ...... November 25, 1975 1986/2025 3 /4% 6,000,000Maize development ............................................ December 23, 1975 1986/2025 /4% 18,000,000Education V ........ .............. ....... ...... December 30, 1975 1986/2025 3/4% 11,000,000

TogoMaritime region rural development ......... . .............. ...... June 8,1976 1986/2026 3/4% 9,500,000

Upper VoltaRural Development Fund N ......................I......... ...... June 8, 1976 1986/2026 34% 9,400,000

Yemen Arab RepublicEducation II ...... ........................... ............. February 10, 1976 1986/2025 Y4% 8,000,000Tihama development (supplement) .................................. March 30, 1976 1983/2023 a/4% 10,300,000Grain storage and processing ........................ ....... ..... June 3,1976 1986/2026 3/4% 5,200,000

Yemen, People's Democratic Republic ofAden port rehabilitation .......................................... August 21, 1975 1985/2025 3/a% 3,200,000Wadi Hadramawt agricultural development ........................... February 19, 1976 1986/2025 3/4% 7,000,000

ZaireEducation II ................ ................. April 13, 1976 1986/2025 1/4% 21,000,000Water supply ........... ..................................... April 13, 1976 1986/2026 14% 21,500,000TOTAL .. 1..................................... . .............................. $1,655,250,000

147

I

Bank/IDA Appendices

Page

1 Bank and IDA Lending Operations, by Major Purpose and Region.....I . ... 150

2 Approved Bank and IDA Lending Operations, by Country ................ 152

3 Administrative Budgets of the Bank and IDA ..... .................... 154

s4 Governors and Alternates of the Bank and IDA ........................... 155

5 Executive Directors and Alternates of the Bank and IDA ....... ......... 157

6 Officers and Department Directors of the Bank and IDA ................... 158

7 W orld Bank Offices ......... ................ ................... 159

149

Bank and IDA Lending Operations,by Major Purpose and RegionCumulative totals of loans and credits approved, June 30, 1976(l)(US$ millions)

Bank loans to current borrowers by region

Europe,Middle Latin East

East, and America AsiaEastern Western North and the and South

Purpose(2) Africa Africa Africa Caribbean Pacific Asia Total

AGRICULTUREAgricultural credit ....................... $ - $ 3.5 $ 347.5 $ 128.9 $ 39.5 $ - $ 519.4Area development . ..................... 27.9 109.0 95.0 272.1 312.0 197.0 1,013.0Fisheries .............. ...... . - - 12.5 8.7 45.8 - 67.0Irrigation, flood control, and drainage ..... 44.2 17.5 616.2 431.3 553.5 149.0 1,811.7Livestock ............................ 5.3 32.6 104.5 645.0 48.0 - 835.4Crop processing, storage ............... . - - 34.9 84.8 45.8 25.0 190.5Perennial crops ....................... 57.4 216.4 10.0 12.0 50.0 - 345.8Agricultural research . ......... - - 12.7 43.0 72.0 - 127.7Forestry . ................. 24.7 - 25.0 - 8.5 - 58.2Other ............................. 5.6 - - 22.7 - 26.3 54.6

Subtotal ................ ......... 165.1 379.0 1,258.3 1,648.5 1,175.1 397.3 5,023.3

DEVELOPMENT FINANCE COMPANIES ..... 88.5 47.6 1,278.2 543.0 585.5 696.2 3,239.0

EDUCATION ................ ....... 84.5 117.3 314.0 237.9 247.2 - 1,000.9

ELECTRIC POWER ................ ....... 460.1 280.0 1,382.1 3,404.0 1,004.8 342.7 6,873.7

INDUSTRYFertilizer and chemicals .... ...... .. - - 102.0 100.0 185.0 176.0 563.0Iron and steel .......................... - - 186.0 469.0 - 189.0 844.0Small industry . ............. - 60.0 86.0 - 30.0 - 176.0Mining, other extractive . .... ..... 137.5 131.0 73.3 169.8 - 54.5 566.1Pulp and paper . ............. - - 110.0 20.0 - 4.2 134.2Textiles . ...... .......... 15.0 - 52.0 - - - 67.0Other ......................... - 0.6 228.5 22.5 - - 251.6

Subtotal ............................. 152.5 191.6 837.8 781.3 215.0 423.7 2,601.9MAINTENANCE IMPORTS ................ - - - - -

NONPROJECT ............................ 130.0 80.0 168.0 60.0 175.0 - 613.0POPULATION AND NUTRITION ........... - - 16.5 30.8 30.0 - 77.3

TECHNICAL ASSISTANCE ... ........... . - - 2.8 13.3 13.0 - 29.1

TELECOMMUNICATIONS ................. 101.6 54.3 186.0 255.7 141.3 27.5 766.4

TOURISM ........... ................- 9.7 70.6 43.0 25.0 - 148.3

TRANSPORTATIONDomestic aviation ........ ..... 49.0 3.0 - 74.5 - 5.6 132.1Highways . ................. 192.5 291.1 715.5 1,533.1 589.1 39.9 3,361.2Pipelines . ................ 20.0 - 197.9 23.3 - 116.2 357.4Ports and shipping . ........... . 81.3 151.3 520.3 192.6 288.2 109.8 1,343.5Railways ............................. 197.9 103.5 594.5 821.5 379.7 520.1 2,617.2Other ................... .......... 28.0 25.0 - 30.0 - - 83.0

Subtotal ............................. 568.7 573.9 2,028.2 2,675.0 1,257.0 791.6 7,894.4

URBANIZATION ................... ..... 28.0 - 53.0 44.5 114.0 - 239.5

WATER SUPPLY AND SEWERAGE .......... 57.6 23.5 375.4 445.0 178.1 - 1,079.6

TOTAL ........................... $1,836.6 $1,756.9 $7,970.9 $10,182.0 $5,161.0 $2,679.0 $29,586.4

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 toans of $530 million to IFC are excluded. Due to rounding, totals may not agree with those shown in Appendix 2.

M 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.(1) Cancellations, terminations, and refundings total $1,155 million. This figure includes $46 million of loans and $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, ascommitments to Bangladesh.

150

Appendix 1

IDA credits to current borrowers by region

EuropeMiddle Latin East Total Bank Bank

;astern Western East, and America Asia and IDA to loans toEastern Western North and the and South current past Total

Africa Africa Africa Caribbean Pacific Asia Total borrowers borrowers Bank and IDA

$ 14.6 $ 26.4 $ 52.2 $ 18.5 $ 15.5 $ 465.1 $ 592.3 $ 1,111.7 $ - $ 1,111.7169.7 98.9 27.0 - 6.5 167.0 469.1 1,482.1 5.6 1,487.7

6.0 1.3 7.1 - 10.0 - 24.4 91.4 7.0 98.4128.9 50.0 235.7 18.5 121.2 441.8 996.1 2,807.8 59.8 2,867.6117.9 40.5 44.5 67.5 10.6 90.6 371.6 1,207.0 - 1,207.0

16.3 - - - - 141.7 158.0 348.5 40.0 388.571.3 71.1 15.0 - 121.8 - 279.2 625.0 - 625.0

- - - - - - - 127.7 - 127.7

16.8 - - - - 28.0 44.8 103.0 - 103.0- - - - 7.5 31.0 38.5 93.1 6.6 99.7

541.5 288.2 381.5 104.5 293.1 1,365.2 2,974.0 7,997.3 119.0 8,116.3

56.5 3.0 81.0 6.2 25.0 104.5 276.2 3,515.2 32.8 3,548.0

210.0 103.2 76.8 29.6 91.4 58.0 569.0 1,569.9 12.9 1,582.8

35.8 17.1 50.9 66.3 111.0 501.0 782.1 7,655.8 796.7 8,452.5

- - 21.4 - 35.0 367.0 423.4 986.4 - 986.4- - - - - - - 844.0 - 844.0

4.0 - 2.3 - 16.5 9.5 32.3 208.3 - 208.32.5 - - - - - 2.5 568.6 - 568.6

2.0 - - - - - 2.0 136.2 - 136.2

- - - - - - - 67.0 - 67.0

- - 18.7 - - - 18.7 270.3 340.3 610.6

8.5 - 42.4 - 51.5 376.5 478.9 3,080.8 340.3 3,421.1

- - - - - 1,475.0 1,475.0 1,475.0 - 1,475.0

- - 35.0 4.0 - 406.6 445.6 1,058.6 1,115.1(a) 2,173.7

12.0 - 9.8 - 13.2 36.2 71.2 148.5 - 148.5

11.5 - - - 15.0 13.5 40.0 69.1 - 69.1

37.4 14.1 30.0 - 12.8 375.7 470.0 1,236.4 27.8 1,264.2

- 4.0 16.0 - 16.0 4.2 40.2 188.5 - 188.5

9.0 5.0 2.5 - - - 16.5 148.6 16.2 164.8400.8 276.3 86.5 113.3 88.4 107.9 1,073.2 4,434.4 457.1 4,891.5

- - - - - - - 357.4 - 357.4

63.2 14.0 3.2 - 19.9 168.3 268.6 1,612.1 37.8 1,649.930.0 34.9 38.5 8.0 40.0 569.2 720.6 3,337.8 295.3 3,633.1

- - - - - - - 83.0 12.0 95.0

503.0 330.2 130.7 121.3 148.3 845.4 2,078.9 9,973.3 818.4 10,791.7

19.5 8.0 9.3 26.0 - 35.0 97.8 337.3 - 337.3

' 25.6 13.9 63.1 3.0 4.4 181.2 291.2 1,370.8 2.0 1,372.8

$1,461.3 $781.7 $926.5 $360.9 $781.7 $5,778.0 $10,090.1 $39,676.5 $3,265.0 $42,941.5()

151

Approved Bank and IDA Lending Operations,by CountryCumulative total, June 30, 1976(US dollars)

Bank loans IDA credits TOTAL

Country NumberM' Amount NumberM' Amount NumberM' Amount

Afgh an istan ............... - $ - 12 $ 100,500,000 12 $ 100,500,000Algeria .................. 13 461,000,000 - - 13 461,000,100(Argentina ......... .... 9 532,300,000 - - 9 532,300,000Australia ........... ..... 7 417,730,000 - - 7 417,730,000Austria .................. 9 106,336,429 - - 9 106,336,429Bangladesh2). . _........... 1 46,189,500 36 655,094,965 37 701,284,465.Belgium.................. 4 76,000,000 - - 4 76,000,000Betnin, People's Republic of ......... - - 5 39,600,000 5 39,600,000Bolivia ................. 5 99,750,000 10 60,300,000 15 160,050,000Botswana................. 5 57,800,000 6 15,150,000 11 73,550,000Brazil .................. 64 2,814,690,000 - - 64 2,814,690,000Burma .................. 3 33,350,000 7 132,500,000 10 165,850,000Burundi ................. 1 4,800,000 7 20,980,000 8 25,780,000Cameroon. ............. 12 117,200,000 8 103,450,000 20 220,650,000Caribbean Region ............. 1 20,000,000 - - 1 20,000,000Central African Republic .......... - - 3 12,400,000 3 12,400,000Chad..................7 27,200,000 7 27,200,000Chile................... 21 301,200,000 - 19,000,000 21 320,200,000China, Republic of ............. 14 329,400,000 4 15,300,000 18 344,700,000Colombia ................. 62 1,296,280,000 - 19,500,000 62 1,315,780,000Congo, People's Republic of the....... 2 68,000,000 6 22,130,000 8 90,130,000Costa Rica................. 19 229,100,000 - 5,500,000 19 234,600,000Cyprus .................. 11 83,100,000 - - 11 83,100,000Denmark ................. 3 85,000,000 - - 3 85,000,000Dominican Republic ............ 3 54,000,000 3 22,000,000 6 76,000,000East African Communityl3) ......... 10 244,800,000 - 10 244,800,000Ecuador .............. ... 17 171,100,000 5 36,900,000 22 208,000,000Egypt, Arab Republic of........... 9 375,500,000 11 281,075,000 20 656,575,000El Salvador ................ 14 153,985,000 2 19,600,000 16 173,585,000Equatorial Guinea ............. - - 1 2,000,000 1 2,000,000Ethiopia ................. 12 108,600,000 21 287,100,000 33 395,700,000Fiji ................... 5 35,200,000 - - 5 35,200,000Finland ................. 18 316,779,464 - - 18 316,779,464France .................. 1 250,000,000 - - 1 250,000,000Gabon ........ ......... 614) 69,300,000 - - 6 69,300,000Gambia, The ............... 5 13,900,000 5 13,900,000Ghana .................. 7(5 139,000,000 10 96,500,000 18 235,500,000Greece .................. 12 304,800,000 - - 12 304,800,000Guatemala................ 8 107,000,000 - - 8 107,000,000Guinea ............... .. 3 75,200,000 2 21,000,000 5 96,200,000Guyana ................. 7 41,450,000 2 13,500,000 9 54,950,000Haiti ................... 1 2,600,000 5 51,850,000 6 54,450,000Honduras ................. 14 130,450,000 4 48,200,000 18 178,650,000Iceland ................. 10 47,014,000 - - 10 47,014,000India ..-............... 47 1,746,610,000 79 4,125,700,000 126 5,872,310,000Indonesia ................ 17 897,000,000 38 561,800,000 55 1,458,800,000Iran... ................ 33 1,210,700,000 - - 33 1,210,700,000Iraq ............. ..... 6 156,200,000 - - 6 156,200,00(1Ireland ...... ........... 8 152,500,000 - - 8 152,500,000Israel .................. 11 284,500,000 - - 11 284,500,000Italy ................... 8 399,628,000 - - 8 399,628,000Ivory Coast.................. 19(5)(e) 263,400,000 1 7,500,000 20 270 900,000kJamaica ................. 15 150,000,000 - - 15 150,000,000Japan .................. 31 862,900,000 - - 31 862,900,000Jordan .................. -- 14 71,300,000 14 71,300,000Kenya .. ............... 19 338,300,000 15 148,300,000 34 486,600,000Korea, Republic of............. 26 1,125,000,000 6 110,800,000 32 1,235,800,000Lebanon ................. 3 66,600,000 - - 3 66,600,000Lesotho.................. - - 4 19,200,000 4 19,200,000Liberia .................. 12 64,150,000 3 17,000,000 15 81,150,000Luxembourg................ 1 12,000,000 - - 1 12,000,000Madagascar. .~.............. 5 32,850,000 7 110,150,000 12 144,000,000Malawi .................. 1 9,200,000 14 97,190,000 15 106,390,000Malaysia ................. 33 733,600,000 - - 33 733,600,000Mali. ..................... 10 90,700,000 10 90,700,000

152

Appendix 2

Bank loans IDA credits TOTAL

Country NumberMi Amount NumberM' Amount Number(') Amount

Malta.................. 1 $ 7,500,000 - $ - 1 $ 7,500,000;Mauritania .... ........... 1 66,000,000 7 29,750,000 8 95,750,000Mauritius ................ 5 33,000,000 4 20,200,000 9 53,200,000Mexico ...... ......... 45 2,535,100,000 - - 45 2,535,100,000Morocco ................. 25 633,800,000 3 50,800,000 28 684,600,000

-NepaI ................. - - 9 67,700,000 9 67,700,000Netherlands ............... 8 244,000,000 - - 8 244,000,000New Zealand ............... 6 126,800,000 - - 6 126,800,000Nicaragua ................ 20 128,750,000 2 23,000,000 22 151,750,000Niger .................. - - 8 51,604,000 8 51,604,000

Nigeria ......... .......... 27 760,400,000 2 35,500,000 29 795,900,000Norway ................. 6 145,000,000 - - 6 145,000,000Oman .................. 2 8,450,000 - - 2 8,450,000Pakistan(' ............... 34 758,860,500 29 713,713,035 63 1,472,573,535

Panama .................. 12 154,690,000 - - 12 154,690,000

Papua New Guinea............. 5 55,500,000 4 25,200,000 9 80,700,000Paraguay ...... .......... 9 50,850,000 6 41,500,000 15 92,350,000Peru . ................. 31 513,125,000 - - 31 513,125,000Philippines ................ 38 916,900,000 1 32,200,000 39 949,100,000Portugal ................. 6 93,500,000 - - 6 93,500,000

Rhodesia .................. 5(8; 86,950,000 - - 5 86,950,000Romania .................. 9 460,000,000 - - 9 460,000,000Rwanda .................. - - 6 39,900,000 6 39,900,000Sahelian Region90 ....... ...... - - 1 14,000,000 1 14,000,000Senegal .............. ..... 10(e) 55,350,000 14 91,550,000 24 146,900,000Sierra Leone ................ 4 18,700,000 3 23,050,000 7 41,750,000Singapore ................ 14 181,300,000 - - 14 181,300,000Somalia .-.............. 11 76,100,000 11 76,100,000South Africa ............... 11 241,800,000 - - 11 241,800,000Spain .................. 11 460,700,000 - - 11 460,700,000Sri Lanka ............... 8 93,910,000 7 83,400,000 15 177,310,000Sudan ................... 7 154,000,000 12 193,450,000 19 347,450,000Swaziland......... ......... 4 17,450,000 2 7,800,000 6 25,250,000Syrian Arab Republic ........... 5 231,600,000 3 47,300,000 8 278,900,000Tanzania ................ 9 137,200,000 22 213,000,000 31 350,200,000Thailand ................. 36 886,900,000 3 32,000,000 39 918,900,000Togo ................... 1() 60,000,000 4 27,900,000 5 87,900,000Trinidad and Tobago ........... 12 104,800,000 - - 12 104,800,000Taunisia......... .......... 25 323,350,000 5 69,800,000 30 393,150,000Turkey ... ..... .......... 32 1,119,900,000 10 178,500,000 42 1,298,400,000Uganda ................. 1 8,400,000 7 44,300,000 8 52,700,000Upper Volta ............ (O) - 10 54,600,000 10 54,600,000Uruguay ................. 13 207,200,000 - - 13 207,200,000Venezuela......... .... .... 13 383,300,000 - - 13 383,300,000Western Samoa .............. -- 1 4,400,000 1 4,400,000

40Yemen Arab Republic...... ...... - - 10 88,750,000 10 88,750,000Yemen, People's Democratic Republic of ... - - 7 38,360,000 7 38,360,000Yugoslavia......... ......... 39 1,384,100,000 - - 39 1,384,100,000Zai re.................... 6 220,000,000 12 166,500,000 18 386,500,000

.Zambia......... .......... 18(0) 470,150,000 - - 18 470,150,000TOTAL .... ... .1,........ 292 $32,850,427,893 599 $10,089,297,000 1,891 $42,939,724,893

(1) Joint Bank/IDA operations are counted only once, as Bank operations. Whon more than one loan is made for a single project, they ore counted only once.(2) Includes $175,826,965 in IDA amount and 19 IDA credits which replace commitments originally mode to Pakistan. Also includes $4618995139 in Book amount

and 1 Bank loan which replace commitments originally made to Pakistan.(3) Jointly guaranteed by Kenya, Tanzania, and Uganda.(4) One of those loans, of $35 million, is jointly guaranteed by Congo (People's Republic ot the), France, and Gabon.(1) One loan of $613 million, counted an one operation against Togo, is shored in amounts of $3.5 million each by Ghana, Ivory Coast, anod Togo, plus $49.5 million

to Ciments do l'Atrique de l'Ouest (CIMAO), which is jointly guaranteed by tho three countries.(6) One loan for $7.5 million is shared by Ivory Coast, Mali, Senegal, and Upper Volta, but in counted against Ivory Coast.(7) Exclades $175,826,965 in IDA amount and 19 IDA credits which were replaced by commitments mode to Bangladesh. Also excludes $46,189,500 in Bank amount

and 1 Bank loan which were replaced by commitments made to Bangladesh.(8) Two of these loans, totaling $87 million, bone been assigned in equal shares to Rhodesia and Zambia but are counted only once, against Rhodesia.(9) One credit is shared by the following countries: Chad-$2 million; Maii-$2.5 million; Mauritania-$2.5 million; Niger-$2 million; Senegal-$3 million ; Upper

Volta-$2 million. The amounts are net included in each country's total.

153

Administrative Budgets Appendix 3of the Bank and IDAFor the fiscal year ending June 30, 1977

Actual expenses Budget1976 1977

(Thousands of US dollars)

BY ORGANIZATION UNITBoard of Governors .................................... 988 2,99Development Committee ................ .............. 322(') i 333(1)Executive Directors ............... .................. 5,747 7,35310Executive Offices ................................. 885 . 1025!Regional Offices ...... 86,673 0:99,659Central Projects Staff .................................. 23,81 :27,72 26Cooperative Programs-FAO, Unesco, WHO, and UNIDO .. 5,535 1 6,721Development Policy Staff ............. ................. 18,764 20,514,Financial Staff ..... .. ................. 12,241 . 14,528 Operations Evaluation Staff ............................. 1,414 1g,702Legal, ICSID, and Secretary's ........................... 4,568 5,00External Relations .................................... 4,435 4,985Economic Development Institute . ............ 5,050 5,853Administration, Organization, Personnel Management ..... 21,154 .23,471European and Tokyo Offices . ............. 2,590 2,817Grants for consultants to member countries ............... 263 . . 459Consultative Group for Food Production and Investment. . . 156 226Contingency allowance ........ ............. ....... - 2,247TOTAL .................... ......................... 194,572 226,903

Less: Reimbursements ... ......... .................... -8,036 -11,824IFC service and support fee ................ -1,485 1,6i57

TOTAL IBRD/IDA .................................... 185,051 213,J22

BY EXPENSE CATEGORY

Personal services ......... ......... 125,264 142,845Operational travel .................... ............... 20,920 25,819Representation .................. ..................... 620 599Consultants .............................. 13,359(2) 15,814(2)Contractual services ................................ 6,277 6,845Overhead expenses:Other travel .............................. 8,950 11,120Office occupancy ..................................... 9,161 10,473Communications ..................................... 3,820 4,026Other expenses ..... ............................... 6,201 7.I 5:

Contingency .. .............................. ........ -TOTAL ............... ..... ............ ..... .. 194,572 226,903

Less: Reimbursements .... .... ......... ...... -8,036 -111,824i FC service and support fee ..... ................. -1,485 -1 ,67t3)

TOTAL IBRO/IDA ... ........... ...... 185,051 213,422

Of which: IBRD ....................................... 122,281 143,398IDA ........... .................. ..... 62,770 70A [04

The Administrative Budgets for the fiscal year ending June 30, 1977, were approved by the ExecutiveDirectors in accordance with the By-Laws of the Bank and IDA. For purposes oF comparison, the adminis-trative expenses incurred during the fiscal year ended June 30, 1976, are also shown.

') This figure represents the Bank's share (approximately 50%' of the cost of the Committee.

(2) The figures shown include the costs of the Cooperative Programs.

'! In fiscal 1977, general assistance rendered by the Bankto IFC will be paid for by a service and supportFee, which has been established for the year at $1,6579000.

154

Governors and Alternates Appendix 4of the Bank and IDA

June 30, 1976

Member Governor Alternate

Afghanistan .............. Said Abdul Illah .................. Zir GulAlgeria .............. Abdelmalek Temam .................. Rachid HassamArgentina ... Jose Alfredo Martinez de Hoz ...... Adolfo C. DizAustralia . . . P. R. Lynch .... ................... L. W. JohnsonAustria ... Hannes Androsch .................. Walter NeudorferBahamas() ... Arthur D. Hanna .................. Reginald L. WoodBahrain(') ....... Mahmood Al-Alawi ............... Yusuf Ahmed ShirawiBangladesh ...... M. N. Huda ............... M. SyeduzzamanBarbados') ...... Errol W. Barrow .... ........... Stephen E. EmtageBelgium ... Willy De Clercq ......... ........ Cecil de StryckerBenin ... Augustin Honvoh ......... Abou Baba-MoussaBolivia ... Carlos Calvo ........ . Manuel Mercado MonteroBotswana .... .... ... Q. K. J. Masire ............... F. G. MogaeBrazil ... Mario Henrique Simonsen ............ Paulo H. Pereira LiraBurma .... U Maung Lwin .U Myo MyintBurundi .... Gabriel Mpozagara .Jean NdimurukundoCambodia .... Khy Taing Lim .Hak Ham SayCameroon .... Youssouffa Daouda. Ahmadou BelloCanada .............. ...... Donald S. Macdonald ... Paul Gerin-LajoieCentral African Republic ........... Jean Paul Mokodopo ... Joseph Moutou-MondziaouChad .............. Madengar Beremadji ... Ahmed Kerim TogolChile .............. ...... Jorge Cauas Lama ... Sergio Undurraga SaavedraChina .............. Kwoh-Ting Li ... Chun-Heng TuColombia ................... Rodrigo Botero Montoya .. ..... .... German Botero de los RiosCongo, People's Republic of the ...... Alphonse S. Poaty ........ ........ Daniel ObelaCosta Rica .... ............... Porfirio Morera Batres ...... . ...... Bernal JimenezCyprus .... ............... .Andreas C. Patsalides ........ .... A. C. AfxentiouDenmark ......... .......... Ivar Norgaard. .............. Wilhelm UlrichsenDominican Republic .... .......... Fernando Periche Vidal ...... ..... Luis M. Guerrero G6mezEcuador .......... C....... ... sar Robalino Gonzaga ............. Alfonso Arcos V.Egypt ................... Mohamed Zaki Shafei ....l. .. .... Wagih ShindyEl Salvador ......... .... ..... . Rigoberto Antonio Martinez Renderos. Atilio VieytezEquatorial Guinea .............. ... Ondo Mene Ondo Avang .(vacant)Ethiopia Negash Desta .Teferra Wolde-SemaitFiji C. A. Stinson . ...... ....... ... Savenaca SiwatibauFinland .... .......... ..... Paul Paavela. .............. .... Osmo KallialaFrance ................. ..... Minister of Finance ......... . ... .Marcel TheronGabon .... Michel Anchouey. J. Felix MamalepotGambia, The ...... .... L. B. Mboge. T. G. G. SenghoreGermany, Federal Republic of .. .. Hans Apel .Egon BahrGhana .................... . . I. K. Acheampong ............ ..... K. D. FordworGreece . . ......... .Panayiotis Papaligouras .Evangelos DevletoglouGrenada ..... ...... Eric M. Gairy .Jos Maria ChavesGuatemala ..... . . . . Eduardo Palomo E ....... ... .Jorge Lamport RodilGuinea . . ................ .. ... N'Faly Sangare. Momory CamaraGuyana ..... . . . ...... ... ... F. E. Hope ........ .. .. ... Harold WilkinsonHaiti .... Emmanuel Bros. Francois MuratHonduras ........ . ............ Porfirio Zavala Sandoval .(vacant)Iceland . .. . ...... .. Olafur Johannesson ........... ..... Matthias A. MathiesenIndia . . . .... _ ... C. Subramaniam ........ . ......... M. G. KaulIndonesia . . . ...... .... ... ..... Rachmat Saleh. Julianto MoeliodihardjoIran . ....... .. .... . Hushang Ansary .. ..... ....... Jahangir AmuzegarIraq . . . . Fawzi El-Kaissi ........... (vacant)Ireland . . . ...... ... Richie Ryan ....... ... ...... M. N. O'Murchu

' Israel . . . ......... .. Moshe Sanbar ....... Arnon GafnyItaly ..... .............. ... Paolo Baffi. Silvano PalumboIvory Coast .......... Henri Konan Bedie... ......... Kouame N'Dri KpatchiboJamaica(') .......... ....... .... David H. Coore .... G. Art hur Brown

Japan .. ............... ....... . Masayoshi Ohira. .......... Teiichiro MorinagaJordan ...................... .... Hanna Odeh ... ............. .... Hashim DabbasKenya . . . . Mwai Kibaki ........ .... .. Nicholas NgangaKorea . . . ..... ..... Yong Hwan Kim ....... . ........ Sung Whan KimKuwait .. Abdul Rahman Salim Al-Ateeqy . Abdlatif Y. Al-HamadLaos .... Oudong Souvannavong. .... ... (vacant)

kcontinued)

') Member of the Bank only.

155

Governors and Alternates Appendix 4of the Bank and IDA (continued

June 30, 1976

Member Governor Alternate

Lebanon ........................... Khalil Salem ........ ......... Farid SolhLesotho ............. E. R. Sekhonyana ................. A. M. MonyakeLiberia ............. James T. Phillips, Jr ................. D. Franklin NealLibyan Arab Republic ................ Mohammad Zarrough Ragab .......... Mohamad M. SharkasiLuxembourg ................... .Raymond Vouel ..................... Albert DondelingerMadagascar ........................ Rakotovao Razakaboana ...... ....... Rajaona AndriamananjaraMalawi............. D. T. Matenje ................ A. H. MadingaMalaysia ............. Razaleigh Hamzah ............. ... Abdullah bin AyubMali ............................... Sekou Sangare ................ Mahamar Oumar MaigaMauritania ............. Sidi Ould Cheikh Abdallahi ........... Ibrahima A. BaMauritius .......................... Keharsingh Jagatsingh ............... Bramduth GhoorahMexico ............. Mario Ram6n Beteta ................ Gustavo Romero KolbeckMorocco ............. Abdelkader Benslimane .............. Mustapha FarisNepal ........ ......... Bhekh B. Thapa ................... B. B. PradhanNetherlands W. F. Duisenberg .J. P. PronkNew Zealand ...................... H. G. Lang .... N. V. LoughNicaragua ................... .. Guillermo Sevilia-Sacasa .... Juan Jose Martinez L.Niger ....................... ... Abderrahmane Alfidja ........ ...... Mahaman AnnouNigeria ... Asumoh Ete Ekukinam .... ........ Musa BelloNorway ... Per Kleppe .................. Halivard BakkeOman ... Qais A. Zawawi ................... Sherif LotfyPakistan ... Rana Mohammad Hanif Khan ......... A. G. N. KaziPanama ........................... Nicolas Ardito Barletta .............. Miguel A. SanchizPapua New Guinea .. Julius Chan ................... M. MorautaParaguay .. Cesar Romeo Acosta ................. Augusto Colman V.Peru .. Luis Barua Castaneda ................ Oscar Espinosa BedoyaPhilippines .. Cesar E. A. Virata .................. Alejandro Melchor, Jr.Portugal() .. Francisco Salgado Zenha ............. Vitor Manuel Ribeiro ConstancioQatar(') .................. ........ Abdul Aziz Al-Thani ................ Madhat Abdul Latif MasudRomania(') .. Florea Dumitrescu ........... ....... Mihai DiamandopolRwanda � .Denis Ntirugirimbabazi .............. Jean Damascene MunyarukikoSaudi Arabia ... ... Ahmed Zaki Saad .............. .... (vacant)Senegal ...... Ousmane Seck ........... ........... Famara Ibrahima SagnaSierra Leone ...... S. 1. Koroma ......... B. Strasser- KingSingapore(') ..... . Hon Sui Sen ......... Howe Yoon ChongSomalia ................ Abdurahman Nur Herzi .............. Mohamud Jama AhmedSouth Africa ................. T. W. de Jongh .............. G. P. C. de KockSouth Viet-Nam ................. Tran Duong .............. Mai Huu IchSpain .............. .Leopoldo Calvo-Sotelo y Bustelo . ..... Luis Coronel de PalmaSri Lanka ................ Felix R. Dias Bandaranaike ........... Lal JayawardenaSudan ................ Mamoun Beheiry .. ............ Nasr Eldin MustafaSwaziland ................ James Nxumalo .............. V. E. SikhondzeSweden ................ G. E. Strang .............. Kiell-Olof FeldtSyrian Arab Republic . ........ Mohammed El-Charif .............. Abdul Hadi NehlawiTanzania ................ A. H. Jamal .............. Kighoma Ally MalimaThailand ............. ... Sawet Piamphongsant ............. Abhijai JaiwatanaTogo ................ Koudjolou Dogo .............. Akuete Eklu-NateyTrinidad and Tobago ......... ...... F. C. Prevatt .............. F. BarsottiTunisia ................. Mustapha Zaanouni .............. Rachid SfarTurkey ................ Yilmaz Ergenekon .............. Asaf GuvenUganda ................ Semyano Kiingi. .............. Jino GeriaUnited Arab Emirates(t) ..... ........ Hamdan Bin Rashid Al Maktoom ...... S. A. WissaUnited Kingdom ................... Gordon Richardson............ ..... Sir Douglas WassUnited States ................ William E. Simon .............. Charles W. RobinsonUpper Volta ...................... Leonard Kalmogo ..... ............ Pierre TahitaUruguay(') ..... .. Alejandro Vegh Villegas .............. Juan Eduardo AzziniVenezuela() ........ Gumersindo Rodriguez .......... .... H6ctor HurtadoWestern Samoa....... .Vaovasamanaia R. P. Phillips ......... Kolone VaaiYemen Arab Republic ...... ......... Abdul Karim El-Eryani ........... Ali Al-BaharYemen, People's Democratic

Republic of ................ Abdul-Aziz Abdul-Wali ........... Farag Bin GhanemYugoslavia ........... ..... Momcilo Cemovi. ........... Miodrag StojiljkovicZaire ................ Bofossa w'Amb'ea Nkoso ........... Mbeka-MakossoZambia ................ John M. Mwanakatwe ........... Francis M. Walusiku

(1) Member of the Bank only.

156

Executive Directors and Alternates Appendix 5of the Bank and IDAJune 30, 1976

Total votes

Executive Director Alternate Casting votes of Bank IDA

AppointedCharles A. Cooper ... ... Hal F. Reynolds . ......... ..... United States . . . . 64,980 626,654

PNilliam S. Ryrie . ............ Ronald F. R. Deare ........ United Kingdom ......................... ... 26,250 213,176Hans Janssen . ............. Claus Knetschke ........ Germany (Federal Republicof ................... 13,903 174,725Jacques Henri Wahl . .... Rene-Paul Rigaud ........ France ................................ 13,042 112,817Taro Hori . .... .......... Toshihiro Kiribuchi ........ Japan ................................ 10,480 136,039

*Elected

Giorgio Rota . . ........ German Calvillo .............. Italy, Portugal,() Spain ....................... 13,446 50,985(Italy) (Spain)

Earl G. Drake . . .... D. R. Clarke ...... Bahamas,(O) Barbados,() Canada, Guyana,(Canada) (Jamaica) Ireland, Jamaica( . 12,849 120,727

S. R. Sen . . ....... Md. Matiul Islam ........... Bangladesh, India, Sri Lanka ..... ............ 11,644 122,627(India) (Bangladesh)

Peter C. Witte . . Gavra D. Popovi6 ........ .Cyprus, Israel, Netherlands, Romania,(l)(Netherlands) (Yugoslavia) Yugoslavia. 11,302 84,900

Jacques de Groote ... ......... Friedrich T. Krieger .............. Austria, Belgium, Luxembourg, Turkey .......... 10,335 73,550(Belgium) (Austria)

Thavil Khutrakul . . ....... (vacant) ... Burma, Cambodia, Fiji, Indonesia, Korea, Laos,(Thailand) Malaysia, Nepal, Singapore,() South Viet-Nam,

Thailand .10,269 103,478Muhammad Al-Atrash ........... Fahad Saad Aldoasary(2) ........ .Bahrain,O) Egypt (Arab Republic of), Iraq, Jordan,(Syrian Arab Republic) (Saudi Arabia) Kuwait, Lebanon, Pakistan, Qatar,(') Saudi

Arabia, Syrian Arab Republic, United ArabEmirates,O) Yemen Arab Republic .10,123 87,684

Jon Sigurdsson . .. ......... Jon Aase ............ Denmark, Finland, Iceland, Norway, Sweden ..... 10,087 141,577(Iceland) (Norway)

Ismael El Misbah Mekki .......... Timothy T. Thahane ............ Botswana, Burundi, Equatorial Guinea, Ethiopia,(Sudan) (Lesotho) 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) Libyan Arab Republic, Morocco, Oman, Tunisia,

Yemen (People's Democratic Republic of). 8,800 97,585V. Amado Gavidia H . .......... Eduardo A. McCullough ........... Costa Rica, El Salvador, Guatemala, Haiti,(El Salvador) (Panama) Honduras, Mexico, Nicaragua, Panama, Peru,

Venezuela(') .8,343 47,230Armand Razafindrabe . ..... _ ... Stanislas Y. Kpognon ........... Benin, Cameroon, Central African Republic,(Madagascar) (Benin) Chad, Congo (People's Republic of the), Gabon,

Ivory Coast, Madagascar, Mali, Mauritania,Mauritius, Niger, Rwanda, Senegal, Somalia,Togo, Upper Volta, Zaire .8,208 94,490

W. A. E. Green . ............ Bruce M. Cheek ............ Australia, New Zealand, Western Samoa ... ..... 8,154 54,742(New Zealand) (Australia)

Ernesto Franco-Holguin .......... Rodrigo M. Espinosa ........... Brazil, Colombia, Dominican Republic, Ecuador,(Colombia) (Ecuador) Philippines .7,562 85,081

,Luis Barrios Tassano . ......... Alberto A. Sojit(3) .......... Argentina, Bolivia, Chile, Paraguay, Uruguay(') . 6,607 24,598(Uruguay) (Argentina)

In addition to the Executive Directors and Alternates shown in the foregoing list, the following also served after June 30, 1975:rExecutive Director End of period of service Alternate Director Endofperiodofservice

Claude M. Isbister August 1,1975 Jean-Claude H. Faure July 31, 1975(Canada) (France)

A. K. Rawlinson October 3, 1975 Carlos Santistevan October 31, 1975(United Kingdom) (Peru)

Choi Siew Hong October 31, 1975 Heng Kim-Y January 22, 1976(Malaysia) (Cambodia)

R. A. Browning February 13, 1976(United Kingdom)

Note: China (7,750 votes in IBRD and 71,247 votes in IDA), Grenada (267 votes in IBRD and 5,782 votes in IDA), Papua New Guinea (421 votes in IBRD and 7,476votesin IDA),and South Africa(2,980votesin IBRO and 10,725 votes in IDA) did not participate in the 1974 Regular Election of Executive Directors. Grenada hasdesignated Mr. Drake and Papua New Guinea has designated Mr. Green to represent their interests in the Board of Executive Directors.

(1) Member of the Bank only.(2) Has resigned effective July 13, 1976.(3) Has resigned effective June 30, 1976; to be succeeded by Eduardo Conesa (Argentina). 157

Officers and Department Directors Appendix 6of the Bank and IDAJuly 1, I976

President ............................ Robert S. McNamaraSenior Vice President, Operations ..... ...... ... ~J. Burke KnappVice President and General Counsel................ ........... A. BrochesVice President, Finance....................._.......... I . P. M. CargillVice President, Administration, Organization, Personnel Management .... ........ Bernard ChadenetVice President, Development Policy.. .................... .. .Hollis B. CheneryVice President, External Relations................ ....... .. William D. ClarkDirector-General, Operations Evaluation, ...... ................. Mervyn L. WeinerVice President, Projects Staff ............................. Warren C. BaumRegional Vice President, East Asia and Pacific ...................... Bernard R. BellRegional Vice President, Western Africa ........................ Roger ChaufournierRegional Vice President, Eastern Africa ....... ...... ........ S. Shahid Husain('Regional Vice President, Latin America and the Caribbean .................. Adalbert KriegerRegional Vice President, South Asia. . ...... _. .... ....... Ernest SternRegional Vice President, Europe, Middle East, and North Africa ....... W....'ilii A. Wapenhans(2)Regional Vice President........ Munir Benjenk(3rDirector, Programming and Budgeting Department ............... .... John H. AdlerSecretary....................... .......... P. N. DamryController. ..... ... .. .. ..... .. ............. K. Georg GabrielTreasurer. ............... _............. ..... Eugene H. RotbergDirector, Regional Projects Department, Eastern Africa- . ........ Hans A. AdlerSenior Adviser, Office of the Senior Vice President, Operations ..... ......... Gerald AlterDirector, Education Department ............................ Duncan S. BallantineDirector, Country Programs Department 1I. Europe, Middle East, and North Africa ...... Maurice P. BartDirector, Country Programs Department, South Asia ..... . .. Manf red G. BlobelDirector, International Relations Department.. .. Mrs. Shirley BoskeyDirector, European Office.................I....Jean P. Carri6reDirector, Personnel Department .............. I........R. A. ClarkeDirector, Country Programs Department 11, Western Africa ................. F. X. de la Renaudi6reSpecial Assistant to the Vice President, Finance ..... , .............. William DiamondDirector, Development Research Center. . ... _............... John H. DuloyDirector, Industrial Projects Department .... ........ ...... .. Hans FuchsDirector, Financial Policy........._.................. .. Raymond J. GoodmanDirector, Development Finance Companies Department .......... ....... David L. GordonDirector, Development Economics Department .......... I.I...... Ravi GulhatiDirector, Policy Planning and Program Review Department .............. Mahbub ul HaqDirector, Urban Projects Department .............. ........ Ed ward V. K. J ayco xDirector, Economic Development Institute .. . .................. Andrew M. KamarckDirector, Population Projects Department .. .................... ~K. KanlagaratnamDirector, Operations Evaluation Department ......... ..... ..... Shiv S. KapurDirector, Development Policy ......................... Attila KaraosmanogluDirector, Organization Planning Department ... .. ' ' ''' ' James M. KearnsDirector, Regional Projects Department, East Asia and Pacific ...... ........ Syed Salar KirmaniDirector, Regional Projects Department, Europe, Middle East, and North Africa.. ...... A. David KnoaEnvironmental and Health Adviser, Office of Environmental and Health Affairs........James A. LeeExecutive Secretary, Consultative Group on International Agricultural Research .. ...... Michael L. LejeuneDirector, Country Programs Department I, Latin America and the Caribbean........ . Enrique LerdauDirector, Tokyo Ottfice....._.................. ......... Tarao MaedaDirector, Information and Public Affairs Department ........ ... _.......John E. MerriamDirector, Computing Activities Department .................. .... Mervin E. MullerAssociate General Counsel...................._ ......... Lester NurickDirector, Country Programs Department I, Europe, Middle East, and North Africa ...... Martijn J. W. M. PaijmansDirector, Regional Projects Department, South Asia. ...... ............. Robert PicciottoDirector, Country Programs Department I, Eastern Africa ....... ........... Stanley Please(')Director, Internal Auditing Department ...... .... ........... Lawrence N. RapleyDirector, Energy, Water, and Telecommunications Department .............. Yves RovaniDirector, Special Operations, Central Projects Staff ................... Robert SadoveDirector, Regional Projects Department, Western Africa .. ...... ........ Wilfried P. ThalwitzDirector, Economic Analysis and Projections Department ................. Wouter TimsDirector, Tourism Projects Department ................ ......... Stokes M. TolbertDirector, Administrative Services Department ....................... James E. Twining, Jr.Director, Regional Projects Department, Latin America and the Caribbean ... ....... Suitbertus L. M. van der MeerDirector, Projects Advisory Staff ...... .................... Herman G. van der TakDirector, Country Programs Department, East Asia and Pacific......_ ....... . Gregory B. VotawDirector, Country Programs Department 1I, Eastern Africa....... ........... Michael H. WiehenDirector, Country Programs Department 11, Latin America and the Caribbean... ....... Gunter K. WieseDirector, Transportation Department...........................Christopher R. WilloughbyDirector, Country Programs Department I, Western Africa .... .. ........... E. Peter WrightDirector, Agriculture and Rural Development Department ....... ........... Montague YudelmanM~ On leave of absence until February 1977.(2) To be appointed Regional Vice President, Eastern Atrica, in August 1976.r1) Resuminig his appointment as Reaional Vice President, Europe, Middle East, and Nerth Atrica, on his return from sabbatical leave in August 1976.(1) Acting Regional Vice President, Eastern Africa, until August 1976. '150

World Bank Offices Appendix 7July 1, 1976

Headquarters: 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.

New York Office Julian P. Grenfell, United NationsSpecial Representative for Room 2245, Secretariat BuildingUnited Nations Organizations New York, N.Y. 10017, U.S.A.

European Office Jean P. Carriere, 66, avenue d'1enaDirector 75116 Paris, France

London OfficeNew Zealand HouseHaymarketLondon, SWI Y4TE, England

Tokyo Office Tarao Maeda, Kokusai BuildingDirector 1-1 Marunouchi 3-chome

Chiyoda-ku, Tokyo 100, Japan

Eastern Africa John D. North, Extelcoms HouseRegional Director Haile Selassie AvenueMission Nairobi, Kenya

(mailing address: P.O. Box 30577)

Western Africa Paul Geli, Immeuble ShellRegional Chief 64, avenue LamblinMission Abidjan, Ivory Coast

(mailing address: B.P. 1850)

Afghanistan Tae-Hee Yoon, World Bank Resident MissionResident Representative P.O. Box 211

Kabul, Afghanistan

Bangladesh Leonard Weiss, World Bank Resident MissionChief Bangladesh Bank Building (4th Floor)

Motijheel Commercial AreaG.P.O. Box 97Dacca, Bangladesh

Cameroon Michel Palein, World Bank Resident MissionResident Representative Immeuble Concorde

angle avenue El Hadj Ahmadou Ahidjoet avenue J.F. Kennedy

Yaound6, Cameroon(mailing address: B.P. 1128)

Colombia Ian A. Scott, World Bank Resident MissionResident Representative Edificio Aseguradora del Valle

Carrera 10, No. 24-55, Piso 17Bogota D.E., Colombia

(mailing address: Banco Mundial,Apartado Aereo 10229)

Ethiopia John M. Malone, Jr., World Bank Resident MissionResident Representative I.B.T.E. New Telecommunications

Building (First Floor)Churchill RoadAddis Ababa, Ethiopia

(mailing address: I.B.R.D. Mission,P.O. Box 5515)

Ghana James J. McGibbon, World Bank Resident MissionResident Representative c/o Royal Guardian Exchange

Assurance Building, Head OfficeHigh StreetAccra, Ghana

(mailing address: P.O. Box M27)

(continued)

159

World Bank Offices (continued, Appendix 7July 1, 1976

India Jochen Kraske, World Bank Resident MissionChief 53 Lodi Estate

New Delhi 3, India(mailing address: P.O. Box 416)

Indonesia Jean Baneth, World Bank Resident StaffDirector Jalan Wahid Hasyim 100

Jakarta, Indonesia(mailing address: P.O. Box 324/JKT)

Nepal David Thomas, World Bank (I.B.R.D.) Resident MissionResident Representative R.N.A.C. Building (First Floor)

Kathmandu, Nepal(mailing address: P.O. Box 798)

Nigeria Peter Reitter, World Bank Resident MissionChief 30 Macarthy Street

Lagos, Nigeria(mailing address: P.O. Box 127)

Pakistan Alexander F. Kirk, World Bank Resident MissionResident Representative P.O. Box 1025

Islamabad, Pakistan

Saudi Arabia Sir Gordon MacKay, World Bank Resident MissionDirector Electric Company Street

Riyadh, Saudi Arabia(mailing address: P.O. Box 5900)

Sudan Shawki Farag, World Bank Resident MissionResident Representative 28 Block 2H, Baladia Street

Khartoum, Sudan(mailing address: P.O. Box 2211)

Tanzania Lyle M. Hansen, World Bank Resident MissionResident Representative N.1.C. Building(7th Floor, B)

Dar es Salaam, Tanzania(mailing address: P.O. Box 2054)

Thailand Hendrik van der Heijden, World Bank Regional MissionChief Udom Vidhya Building

956 Rama IV Road, Sala DaenghBangkok 5, Thailand

Upper Volta Abdallah El Maaroufi, World Bank Resident MissionResident Representative avenue Monseigneur Thevenoud

Ouagadougou, Upper Volta(mailing address: B.P. 622)

Venezuela Jos6 A. Guerra, World Bank Resident MissionResident Representative Centro Andres Bello

Avenida Andres Bello, 113-E, MariperezCaracas, Venezuela

Zaire Serge Guetta, World Bank Resident MissionChief Building UZB

avenue des AviateursKinshasa 1, Republic of Zaire(mailing address: P.O. Box 14816)

Zambia Hans H. Reichelt, World Bank Mission in ZambiaResident Representative Kulima Tower(13th Floor)

Katunjila RoadLusaka, Zambia

(mailing address: P.O. Box 4410)

160

t

Photo CreditsCover: Edwin G. Huffman

"Frontispiece: Ray WitlinPage 27: Edwin C. HuffmanPage 31: Ray WitlinPage 37: Ray Witlin for UNPage 41: Peter C. MunciePage 47: Ray WitlinPage 53: Edwin C. HuffmanPage 74: Edwin G. Huffman

I

7

World BankHeadquarters:1818 H Street, N.W.Washington, D C 204:33, U.S.A.Telephone: (202) 393-6360_ _

Cable address: INTBAFRADWASH I NGTON DC

European Office:66, avenue d'lena75116 Paris, France

Tokyo Office:Kokusai Building1-1 Marunouchi 3-chomeChiyoda-ku,jTokyo 1WC, Japan