.4. - I~~~~~~~~~~~~~~~~~~~~~~~~~~~fi A II~~~~~~~~~~~~~~~~~~~~~~~~~~~~A --95 M-w ~ _____________ THE WORLD BANK ANNUAL REPORT 1994 The World Bank M Washington, D.C. 20433 2 Photo Credits Cover: Francois Charron Page 10: Antonia Macedo Page 78: Francois Cacrron Page 81:Jan Post Page 92: Antonia Macede Page 97: Francois Charron Page 103: Ephirn Schluger Page 109: Jan Post Page 120: Perer Muncie Cover: This girl lives near ithe Guatemala high-country village of Solala near Lake Atittan. Known as the 'jewel of the highlands," the lake has generated incomefrom tourism and allowed the villagers to become relatively prosperous The child has trav- eled to the market with her parents and is waiting at the bus plaza to travel home. Cover design by Joyce C. Petnezzi ISSN: 0252-2942 ISBN: 0-4213-2545-0 3 Letter of Transmittal This Annual Report, which covers the period pay tribute to the dedication of Bank staff, who July 1, 1993, to June 30, 1994, has been pre- for five decades have served to make the world pared by the executive directors of both the a better place in which to live. Enormous de- International Bank for Reconstruction and De- velopment challenges remain; the directors velopment (LBRD) and the International Devel- are confident that they will be addressed with opment Association (IDA) in accordance with enthusiasm and professionalism equal to that the respective by-laws of the two institutions. given in the past. Lewis T. Preston, president of the IBRD and Annual Reports for the International Fi- IDA and chairmn of the boards of executive nance Corporation (IEC), the Multilateral In- directors, has submitted this Report, together vestment Guarantee Agency (MIGA), and the with accompanying administrative budgets and International Centre for Settlement of Invest- audited financial statements, to the board of ment Disputes (ICSID) are published sepa- governors. rately. During this, the Fifieth Anniversary year of the founding of the Bank, the directors wish to EXECUTIVE DIRECTORS ALTERNATES Ibrahim A. Al-Assaf Ibrahim M. Al-Mofleh Faisal A. Al-Khaled Mohamed W. Hosny Aris Othman Jannes Hutagalung Marc-Antoine Autheman Jer6me Haas Mohamed Benhocine Abdul Karim Lodhi Andrei Bugrov Alexander N. Doumnov John H. Cosgrove Bong-Hee Won Robert R. de Cotret Hubert Dean Marcos Caramuru de Paiva Marcela Cartagena Huw Evans David Stanton Fritz Fischer Harld Rehm Nicolas Flafio Julio Nogues Jean-Daniel Gerber Jan Sulmicki Enzo Grilli Helena Cordeiro Eveline Herfkens Beana Ionescu Ruth Jacoby Helga Jonsdottir Bimal Jalan M.A. Syed Yasuyuki Kawahara Rintaro Tamaki Jean-Pierre Le Bouder Ali Bourhane O.K. Matambo Hary M. Mapondo Jan Piercy (vacant) Walter Rill Nurcan Akturk Angel Torres Gabriel Castellanos Wang Liansheng Zhang Shengman August 2, 1994 4 The World Bank, the IFC, and MIGA The World Bank is a multilateral develop- cies, and other multilateral institutions are ment institution whose purpose is to assist its increasingly being paired with World Bank developing member countries further their eco- funds to cofinance projects. The World Bank nomic and social progress so that their people also provides loans to help developing coun- may live better and fuller lives. The term tries adjust their economic policies and struc- "World Bank" refers to two legally and finan- tures in the face of structural problems that cially distinct entities: the International Bank threaten continuing development. for Reconstruction and Development (IBRD) The International Finance Corporation and the International Development Associa- (FC), an affiliate of the World Bank, seeks to tion (IDA). The IBRD and IDA have three re- promote growth in the private sector of devel- lated functions: to lend funds, to provide oping countries by mobilizing foreign and do- economic advice and technical assistance, and mestic capital to invest alongside its own funds to serve as a catalyst to investment by others. in commercial enterprises. The IBRD finances its lending operations The Multilateral Investment Guarantee primarily from borrowings in the world capital Agency (MIGA), also an affiliate of the World markets. IDA extends assistance to the poorest Bank, was established in 1988 to encourage di- countries on easier terns, largely from re- rect foreign investment in developing countries sources provided by its wealthier members. by protecting investors from noncommercial Funds from such other sources as govern- risk, especially risk of war or repatriation. ments, commercial banks, export-credit agen- Contents 5 Contents Letter of Transmital 3 World Bank, the IFC, and MIGA 4 Glossary 7 Overview of World Bank Activities in Fiscal 1994 11 Section One. The Executive Board 16 Section Tno. The Economic Scene: A Global Perspective 23 Section Three. Major World Bank Progam Fical Year 19!4 33 Human Resources Development 33 Environmentally Sustainable Development 42 Financial and Private Sector Development 50 Section Four. World Bank OperatioEn Fscal Year 1994 56 Disbursements 56 Technical Assistance 68 Cofinancing 69 Inproving Portfolio Management, Accountability, and Openness 73 Secton FiLve. 1994 Regional Perspectives 79 Africa 79 East Asia and Pacific 88 South Asia 95 Europe and Central Asia 101 Latin America and the Caribbean 107 Middle East and North Africa 114 Summaries of Projects Approved for IBRD, IDA, and Trust Fund for Gaza Assistance in Fiscal 1994 122 Projects Approved for IBRD and IDA Assistance in Fiscal Year 1994. by Region and Country 144 Trends in Lending, IBRD and IDA, Fiscal Years 1992-94 147 Projects Approved for IBRD and IDA Assistance in Fiscal Year 1994, by Sector 148 Section Six. Other World Bank Group Services and Actvities 154 Operations Evaluation 154 Internal Auditing I5 Economic Development Institute 156 Research at the World Bank 158 The Administrative Budget and Bank Administration 160 International Finance Corporation 163 Multilateral Investment Guarantee Agency 164 International Centre for Settlement of Investment Disputes 165 Section Seven. World Bank Finances 166 6 Contents Finandal Statements of the International Bank for Reconstruction and Development 173 Financial Statements of International Development Association and the Special Fund Administered by IDA 195 IBRD/IDA Appendices I Governors and Alternates of the World Bank 212 2 Executive Directors and Alternates of the World Bank and Their Voting Power 216 3 Officers and Department Directors of the World Bank 218 4 Offices of the World Bank 221 5 IBRD and IDA Cumulative Lending Operations, by Major Purpose and Region 228 6 IBRD and IDA Cumulative Lending Operations, by Borrower or Guarantor 230 7 Statement of IBRD Loans Approved dining Fiscal Year 1994 234 8 Statement of IDA Credits Approved during Fiscal Year 1994 240 9 Current IBRD, IDA, and Blend Borrowers 245 10 Development Committee Communiques, Fiscal Year 1994 246 EIdex 251 Boxes The Bank, Age 50, Looks to the Next Century 12 2-1 The Uruguay Round, Market Access, and the Developing Countries 31 3-1 Iigher Education-Lessons of Experience 34 3-2 Review of Projects Involving Involutary Resettlement 44 3-3 Private Sector Assessments 51 3-4 Managing Energy 53 4-1 Independent lnspection Panel is Established 74 4-2 Public Access to Bank Information Expands 75 4-3 The World Bank's Experience with Governance 76 4-4 Increasing the Reliability of Rating Project Effectiveness 77 5-1 Implementation of Economic Reforn: Overview and Seven Case Studies 82 5-2 Toward Better Health in Africa 85 5-3 China: Continuing Reform and Development 89 5-4 The East Asian Miracle 89 5-5 Lending to Viet Nam Resumes; Is Initiated in Cambodia 91 5-6 Privatization Progress in the Russian Federation 104 5-7 Pension Reform in Latin America 112 5-8 The World Bank and the Occupied Territories 116 7-1 IDA's Ninth Replenishment Period (Fiscal 1991-93) 170 7 Glossary Agenda 21 The main operational product of utive directors; it has traditionally served as a the United Nations Conference on Environ- forum in which preliminary discussion of issues ment and Development (UNCED), Agenda 21 takes place before they are taken up by the ex- is an ambitious action plan covering over 100 ecutive board. It is also the forum in which the progr-am areas (climate, desertification, sus- executive directors act as a preparatory body tainable agriculture, for example) integrating for the work of the Development Committee. environment and development, to be sup- ported by new and additional financial re- CuheBnan swaps Currency swaps are used by sources, improved access on favorable terms the Bank as a liability-management tool and es- to euvironmentally sound technology, and sentially involve an exchange of a stream of strengthened institutional capacity in develop- principal and interest payments in one cur- ing countries. States were called upon to pre- rency for a stream in another currency. The pare national sustainable development plans Bank uses currency swaps to obtain borrow- outlining their own environmental problems as ings in the ultimately desired 'target" cur- well as their strategies, programs, and priori- rency at below cost of a market borrowing in ties for implementing Agenda 21. UNCED that currency. agreed that financing should be assembled to Deelopment Committee This committee is support these programs through a variety of ex- known formally as the Joint Ministerial Com- istng, rather than new, funding mechanisms. inittee of the Boards of Governors of the World "Brady" operations Named after a March Bank and the International Monetary Fund on 1989 initiativc by then-U.S. Secretary of the the Transfer of Real Resources to Developing Treasury Nicholas Brady who proposed that Countries. Established in October 1974, the countries with sound adjustment problems conmittee currently consists of twenty-four should get access to debt- and debt-service re- members, generally Ministers of Fmance, ap- duction facilities supported by international fi pointed for periods of two years by one of the nancial institutions and official creditors. It countries or a group of countries that desig- represented a shift in the intemational commu- nates a member of the Bank's or the Interna- nity's debt strategy from supporting adjust- tional Monetary Fund's board of executive ment with concerted new lending to supporting directors. The committee is required to advise adjustment with debt- and debt-service reduc- and report to the boards of governors of the tion. two institutions on all aspects of the broad question of the transfer of real resources to de- "Brown" environmental agenda Refers to the veloping countries and to make suggestions for immediate ana most cntical environmental their implementation. problems facing cities and includes three main areas-energy use and efficiency, urban and in- "2-nhanced" Toronto terms A menu of Paris dustrial pollution control, and urban environ- Club concessions for low-income countries, mental management. initiated in 1991, comprises two options pro- Central bank faclility A facility used by the viding for deeper debt reduction plus the non- IBRD to raise short-bte United Staes-ollar concessional option from the old Toronto debt by offeringto central bankcs and othergov- terms. The concessional options amount to 50 edinent organizations of member countnres a percent forgiveness in present-value terms on cmmnt-YersUnited States-dollar denominated debt-service payments falling due during the one-year, cnisted te deinominated consolidation period. Enhanced Toronto terms variable-rate instrument. The interest rate is also provide for a third nonconcessional op- adjusted monthly on the yield of the one-year tion: consolidation at market rates, with a re- U.S. Treasury bill plus a spread. payment period of twenty-five years, including Committee of the Whole The Committee of a fourteen-year grace period. This option was the Whole is a committee made up of all exec- adopted by the United States and some smaller 8 Glossary creditor countries that were, at the time, un- OMcial development assistance (ODA) Finan- able to adopt debt cancellation for non-ODA cial aid to developing countries and multilateral debt. institutions provided by official agencies, or by Forward foreign exchange market Allows for their executive agencies. ODA is administered the sale or purchase of foreign currency for de- with the promotion of the economic develop- ferred rather than immediate delivery. ment and welfare of developing countries as its main objective, is concessional in character, G-7 countries Canada, France, Germany, and contains a grant element of at least 25 per- Italy, Japan, the United Kingdom, and the cent. United States Panel data set Is one composed of both timc "Green" environmental agenda Refers to the series and cross-section observations. The re- promotion of sustainable natural resource man- sulting data base is a gold mine of analytical agement and the reduction of resource information relative to the much more common degradation, and includes agriculture and land cross-sectional base. management, forest management, water- resource and watershed management, marine Paris Club The Paris Club is the name given and coastal zone management, and biodiver- to the ad hoc meetings of creditor governments sity conservation. that, since 1956, have arranged, when neces- sary, for the renegotiation of debt owed to of- ICOR (incremental capital-output ratio) An ricial creditors or guaranteed by them. (Debts aggregate measure of the efficiency of invest- to commercial banks are renegotiated with ment. It shows the amount of investment re- committees of the banks involved.) The World quired to produce an annual income stream of Bank is not a member of the Paris Club. one dollar. The lower the ICOR, the more ef- ficient the investment. Social-action programs Social-action pro- lIBOR (London Interbank Offered Rate) grams and social funds consist of multisectoral LIBOR is(therateatwhichnajorebanks in e operations that mobilize several sources or fi- don are willing to lend in a specific currency nancing to fund special interventions and tar- or currency unit to other banks. It is used as a geted projects seeking to alleviate the social base rate for many international interest-rate costs of adjustment, as wel as poverty in gen- transactions. eral. The project components that typically get financed include public works, severance pay- Low-income countries Are those countries ments, retraining, and schemes in nutrition, with a GNP per capita of $675 or less in 1992 primary health, and primary education. While United States-dollar terms. the objectives and project content of social- Mezzanine flnancng Has two separate mean- action programs and social fuinds are similar, ings, one having to do with the type of finance, they differ in their institutional set-up. Social the other with the stage a company has funds finance small, demand-driven sub- rcached. It is the second sense that applies to projects and often bypass existing bureaucratic mezzanine finance funds supported by the lFC: systems and procedures; funding commitments risk capital made available to unlisted compa- are often based on the evaluation of project nies to support development and expansion proposals prepared according to predeter- programs, in anticipation of the companies' be- mined selection criteria Social-action program ing listed. subprojects are typically appraised by the World Bank. Whereas social funds are most Middle-income countries Are those countries often parastatal quasi-financial institutions, with a GNP per capita of more than $675 but social-action programs generally cover a less than $8,356 in 1992 United States-dollar broader array of institutional arrangements, terms. such as quasi-autonomous project dnits or in- Negative-pledge clause Negative-pledge tegration into sectoral ministries. clauses are concerned with the grnting of se- Social fund (See social-action programs) curity interests by a borrower over its assets to its creditors. By the terms of such a clause, the SPA-eligible country Country eligibility is de- borrower agrees with a creditor or group of termined on the basis of poverty (countries creditors to restrictions on its granting, or oth- cannot be eligible for IBRD loans), indebted- erwise permitting to exist, security interests in ness (countries have to have projected debt- favor of other creditors. Negative-pledge service ratios of 30 percent or more, and efforts clauses are usually standard in Bank loan doc- to adjust (countries have to be currently imple- umnents. They may be waived on a case-by-case menting a policy-reform program that is en- basis, however. dorsed and normally supported by the Bank Glossary 9 and the International Monetary Fund, and debt in low-income, debt-distressed countries. agreement has to be reached on a policy frame- The terns, agreed upon in September 1988 (fol- work paper). lowing agreement in principle at the economic Special drawing rights (SDRs) The special summit held in Toronto three months earlier), drawing right is a reserve asset created in 1968 include reduced interest, very long grace and by the International Monetary Fund for use by repayment periods (at commercial rates), or its members and certain prescribed institu- partial write-offs of debt-service obligations tions, among which are multilateral develop- during the consolidation period (with the rest ment banks and the Bank for International reschcduled at commercial mtes and shor Settlements. Its value is calculated daily by us- maturities), or a combination of these options. ing a weighted basket of the currencies of the Vehicle currency A currency in which the G-5 countries (France, Germany, Japan, the Bank borrows and simultaneously enters into a United Kingdom, and the United States). currency swap in order to convert the "vehi- Structured notes Those for which the returns cle" currency liability into a liability denomi- are linked so interest and/or exchange rate in- nated in a"other currency (a so-called 'target" dices. cuffency"). Toronto terns Toronto terms refer to a menu of options that can be chosen to reduce official 10 It~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~i - - a",'- *~~~~~~~~~ ar - IX W v -*-E K S- _~~~~~~~~~~~~~~~| _ -~~~~~~~~~~~~~~~~~~~~~~~~~~- -\. ,,r - B '4~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -le~~~~~~~~~ a -- -l* 82:l^4 i-~~~~~~~~~~~~~i- ,:'''' '4 -' ' ' - S8S E'~~~~~ i-- # !' ' ' ' ,,__.~~z! "nI- * l ' ,I( ' ttS School chilldren in Guiling, a city in the southern province of Gusangxi. In China, equal education is provided to girlskfrom the eartiest age. ,, , ,_, ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~11 Overview of World Bank Activities in Fiscal 1994 The fundamental objective of the World ing an integrated poverty-reduction effort in Bank is to support the reduction of poverty in country-assistance strategies; completion of, its member countries. During fiscal 1994, the and improvements to, poverty assessments for Bank continued to make progress-through its all borrowers; and development of poverty- lending operations and a strengthened policy monitoring systems and expansion of coun- dialogue-in implementing the poverty- tries' capacity to implement them. reduction strategies first outlined in World De- Most recently, the Bank has placed less em- velopment Report 1990 and subsequently phasis on the growth of its portfolio and more elaborated in a policy paper and associated op- on its quality. This shift grew out of the 1992 erational documents. report of the Task Force on Portfolio Manage- A report on poverty reduction, discussed by ment, which identified certain aspects of Bank the executive board in April 1994, concluded practice that either may have contributed to that progress was being made in implementing portfolio-management problems or were insuf- the Bank's poverty-reduction strategy-in the ficiently effective in resolving them. Steps Bank's lending operations, in country- were taken in fiscal 1994to incorporate the task assistance strategies and the policy dialogue, force's recommendations so as to make the and in strengthening poverty analyses. The re- Bank more effective in pursuing its basic goal port noted, however, that several challenges of reducing poverty in borrowing countries. had to be addressed in the Bank's future As the core of its action plan, the Bank in- poverty-reduction work. They include ensur- troduced a country-by-country approach, Operational and Financial Overview, Fiscal 1990-4 (millions of US dollars unless otherwise notcd; fiscal ycars) Item 1990 1991 1992 1993 1994 mRD Commitments 15,180 16,392 15,156 16,945 14,244 Disbursements 13,859 11,431 11,666 12,942 10,447 Net disbursements8 5,726 2,109 1,833 2,331 -731 New medium- to long-term borrowings 11,481 10,883 11,789 12,676 8,908 Net income 1,046 1,200 1,645 1,130 1,051 Subscnrbed capital W12,262 139,120 152,248 165,589 170,003 Statutory lending limit 137,046 152,327 168,369 183,312 189,189 Loans outstanding 89,052 90,638 100,810 104,451 109,291 Kes ratis Loans outstanding as a percentage of lending limit 65 59 60 57 58 Intercst coverage ratio 1.17 1.17 1.24 1.16 1.16 Liquidity ratio (percent) 47 51 48 48 51 Reserves-to-loans ratiob 10.8 11.2 11.7 11.7 13.9 IDA Comm;itments 5,549 6,293 6,550 6,751 6,592 Disbursements 3,931 4,549 4,765 4,947 5,532 Net disbursementse 3,713 4,274 4,441 4,581 5,110 a. Amounts include disbursements, repayments, and prepayments tofirom all members, induding third party rpayments. b. Includes amount aDocated to reserves for prefimding of inktrest waives. 12 Ovevlew of World Bank ActMlles In Fiscal 1994 rather than a project-by-project approach, into extra expenditures incurred in involving bene- the management of its ongoing lending opera- ficiaries in project preparation and ih economic tions. To complement the changes it made in its and sector work. The initial monies allocated to own policies and practices, the Bank is collab- the fund were fully committed by November, orating with the authorities in borrowing coun- and additional amounts were allocated in tries to review the performance of the portfolio March 1994. Involving beneficiaries in project in each country and resolve systemic prob- preparation is now beginning to become normal lems. These and other measures are helping the Bank procedure. Bank take a much more strategic view of its Cooperation between the Bank and nongov- $148 billion loan portfolio ($107 billion, 982 ernmental organizations (NGOs) continued to projects. IBRD: $41 billion, 915 projects, IDA). expand in terms of bo:h lending operations and According to a report on the progress of activ- the policy dialogue throughout the year. In- ities designed to improve the management of creased collaboration was clearly exhibited at the development programs and projects the the Conference on Actions to Reduce Hunger Bank finances, steady and substantial progress Worldwide that was convened by the Bank in has been made during the past year towards November 1993. In addition to participating in sharpening the focus on implementation and on presentations and discussion, NGOs assisted a performing portfolio. The report adds, how- in the conference's preparatory and follow-up ever, that more remains to be done, for the ac- work. tion plan is not a set of one-time activities; During the year, steps were taken to increase rather, it is a process that is expected to take the Bank's accountability and openness: years before it is satisfactorily completed. In September 1993, the executive board of The Bank is also devoting more energy and the Bank established an independent Inspec- resources to fostering stakeholder participation tion Panel, which will receive and investigate during project preparation. In June 1993, a Par- complaints that the Bank has not followed its ticipation Fund was established to finance own policies and procedures with respect to The Bank, Age 50, Looks to the Next Century Fifty years ago, in July 1944, the World Bank was economicaly and socially and how far it stiU has conceived at the United Nations Monetary and to go. Financial Conference held in Bretton Woods, In the developing countries, average life ex- New Hampshire. United States of America. pectancy has increased by about 50 percent; the Representatives of forty-four nations assem- proportion of children attending school has risen bled there established two complementary from less than half to more than three quarters; financial institutions-the Bank and the Interna- and average income per person has more than tional Monetary Fund. doubled. The Bank-through its support for mor This is what the report of Commission II (in- than 5,000 projects in about 140 countries-has ternational Bank for Reconstruction and Devel- contnbuted to this pmgress. opment) to tl'e Executive Plenary Session Enormous challenges remain, however. They (United Nations Monetary and Financial Confer- include reducing poverty for the more than I bil- ence) wrote about the Bank in that sv mer of lion reople who struggle to survive on about a 1944: dollar a day and providing basic sanitation, clean "The creation of the Bank was an entirely new water, health care, and schooling for those lack- venture.... So novel was it, that no name could ing access to these basic services. Most countres be found for it. Insofar as we can talk of capital in sub-Saharan Africa have been mired in lack- subscriptions, loans, guarantees, issue of bonds, luster or declining rates of growth for more than the new financial institution may have some ap- a decade. The problems associated with eco- parent Jaim to the name of Bank. But the typc of nomic transformation in Central and Eastern Eu- shareholders, the nature of subscriptions, the ex- rope and the former Soviet Union have proved to clusion of all deposits and short-term loans, the be extremely complex. And new challenges are non-profit basis, are quite foreign to the accepted coming to the fore, in South Africa and the West nature of a Bank. However, it was accidentally Bank and Gaza, for example. born with the name Bank, and Bank it remains, -In a number of ways, the Bank is uniquely mainly because no satisfactory name could be placed to help address these challenges. Most im- found in the dictionary for this unprecedented in- portant is its fifty years of experience in working stitution." on almost every kind of development issue in al- Reflection on the experience of the past fifty most every developing country. F-rom that exp- years highlights how far the world has progressed rience has come lessons learned over the years: Overview of World Bank Activlles In Fiscal 1994 13 the design, appraisal, and/or implementation of lending operations continued to be significant. a developmenr project that it supports. The In fiscal 1994, resources spent on economic panel will be functionally independent and will and sector work were about 19 percent of the report directly to the board. In April 1994, the total. On an ongoing basis for all borrowers, three members of the panel werc appointed. the Bank is engaged in preparing or updating In January 1994, the Bank expanded public poverty assessments, private sector assess- access to operational information by opening a ments, environmental assessments, national Public Information Center at the Bank's head- environmental action plans, and country- quarters in Washington, D.C. that aims to pro- assistance strategies for discussion by the ex- vide timely and relevant information about the ecutive directors. Bank's present and future plans by allowing Thcse and other economic and sector anal- public access to previously restricted docu- yses are designed to deepen the Bank's under- ments. The information is also available standing on development issues, improve the through Bank offices in London, Paris, Tokyo, impact of its operations, and enhance policy- and through the institution's many field offices. reform efforts. They are particularly important The public can also use the Internet computer for the Bank's newest member countries, network to access project information docu- where there continues to be a need for consid- ments and to view (and order) the titles of all erable investment in analytical work prior to Bank documents available on request, as well expanding technical assistance and lending as the abstracts and entire text of selected doc- programs. Furthermore, through the three uments. Greater transparency is essential to new thematic vice presidencies, the Bank is explain the Bank's work to the various stake- evaluating best practices in human resources holders and thereby increase understanding of development, environmentally sustainable de- and support for Bank-supported activities. velopment, and financial and private sector de- Resources devoted to the many types of non- velopment and is disseminating them to both lending activities that serve to underpin future staff and extemal audiences. that people are both the means and ends of responding to borrower needs and facilitating development; that sustained commitment to their participation in the design and implementa- sound macroeconomic policy is vital; that insti- tion of Bank-supported programs; looking be- tutional capacity is a major determinant of yond lending commitments and concentrating on progress; and that economic growth should be results in the field, ensuring that scarce develop- broad-based and enviromnentally sustainable to ment resources are spent wisely and efficiently, reduce poverty effectively. and maintaining its high standing in the financial Of fundamental importance, through decades markets. of experience in designing and implementing in- The Bank's record in fostering economic de- vestment projects, the Bank has become a trusted velopment over the past half century has been adviser on development-sharing its global expe- aided in no small part by its ability to respond rience of what does and does not work-and help- quickly and flexibly to the ever-changing environ- ing its member countries apply those lessons. ment in which it works. One fundamental point. In assisting its member countries to meet cur- however, has endured and will not change: rent and future challenges, the Bank is committed The Bank remains the only development insti- to build on and enhance its roles as a supplier of tution in the world with a long-term partnership development financeprovider of advice. and, in with virtually every developing _ountry, awealth special cases, as a resource for helping address of cross-country experience, and a product mix strategic development issues that transcend na- that combines finance, policy advice, and in- tional boundaries. depth research. This unique capacity and the Given the scale and scope of the development fifty-year experience with development make the agenda, the Bank is aware that it must avoid Bank a major global asset in the effort to reduce stretching itself too thin. It is focusing, therefore, poverty and improve the human condition-an on doing what it does best and is encouraging a asset that is just as needed today as it was fifty division of labor with its partners. It is deing this years ago. by foilowing six guiding principles: The Bank calls on its partners to work with it in Being selective in choosing which strategic ac- meeting the challenges of the twenty-first cen- tions to pursue; embracing partnerships with tury. other participants-multilateral, bilateral, gov- ermnental, nongovernmental, the private sector; 14 O vlewot World Bank ActIVItles In Fical 1994 IBRD and IDA Lending to the Poorest Countries, Fiscal 1985-94 (US$ millions) II] IDAamnount - IBRD amount 3,935.2 5,379.7 6,1093 5,977.9 6,166.0 5,361.9 1985-89 1990 1991 1992 1993 1994 annual average Total Total* Total Total Total 9,567.0 9,502.3 11,059.1 11,101.0 10,379.3 9,435.4 Note: The poorest countries are defined as those with a per capita income of$675 or less in 1992 U.S. dollars. In various parts of the Bank, changes in busi- Finance Corporation at the operational level ness practices are being explored. Experimen- has been intensified, including review of pro- tation is under way to help define means of grams in support of the telecommunications delivering Bank products of higher quality with sector and private sector development activi- reduced costs. Most of these efforts are cur- ties. rently directed to process simplification, al- Private flows represent an increasingly im- though more ambitious '"redesigning'" or portant source of finance for developing coun- process-innovation pilot programs are also un- tries, with net flows reaching a ten-year high in der review. In addition, more focused priority 1993 of $113 billion, an increase of more than setting is fostering greater partnerships with 150 percent of the level of 1990. Although lev- the private sector and other multilateral and bi- els of flows in the future are unpredictable, lateral donors. A greater role for the private clearly today the private sector is playing a ma- sector is being promoted explicitly as the Bank jor role in those countries where reform pro- moves to support and catalyze private sector grams are well established or the potential activities. Collaboration with the International exists for lge gains. Countries in East Asia, Overiew of Wadrd Bank Actiiles in Rscal 1994 15 Latin America, and Central and Eastern Eu- the Trust Fund for Gaza was approved for the rope have been the largest recipients of private Occupied Territories. capital, enabling the Bank to address more ba- Net disbursements from the IBRD to mem- sic social and environmental issues that are not ber countries were a negative $731 million- covered by other lenders. IDA's net disbursements were $5,110 million. In summary. the operational context was one During the year, the tenth replenishment of of changing business products and processes in IDA's resources (IDA-10) became effective, an environment containing many country un- and the Debt-reduction Facility for IDA-only certainties, making it all the more important Countries was extended until July 31, 1995. In that the Bank be well positioned to deliver July 1993, the executive board agreed to allo- work programs that are appropriate to current cate $100 million from the IBRD's net income country circumstances and be able to respond earned during fiscal 1993 to the facility. quickly to changing conditions as they arise. The IBRD borrowed the equivalent of $8,908 In fiscal 1994, lending by the Bank to all million in the world's financial markets. Net borrowers amounted to $20,836 million: income was $1,051 million. $14,243.9 million by the IBRD and $6.592.1 During the fiscal year, the former Yugoslav million by IDA. Republic of Macedonia fulfilled the required Specific investment loans and credits was, formalities to succeed to the membership of the by far, the most favored lending instnrnent former Socialist Federal Republic of Yugosla- employed during the year. Commitments for via, bringing the total membership of the IBRD this type of instrument totaled $14.1 billion (68 to 177. At the end of the fiscal year, action was percent of the total). pending on membership in the IBRD for Adjustment lending has been declining since Bosnia-Herzegovina, Eritra, and the Federal 1989. In fiscal 1994. adjustment lending Republic of Yugoslavia. amounted to S24 bilion, representing 12 per- The former Yugoslav Republic of Macedonia cent of the total, compared widt $612 billion in also fulfilled the required formalities to succeed fiscal 1989. an amount that represented 29 per- to the membership of the former Socialist Fed- cent of total lending. This decline is due to the eral Republic of Yugoslavia as a member of relative maturity ofthe reform process in many IDA. Armenia became a member of IDA on countries and to constraints and uncertainties August 25, 1993, Georgia became a member on that impede progress in others. August 31, 1993, and Moldova became a mem- Assistance to the poorest countries-those ber on June 14, 1994, bringing the total mem- with a per capita gross national product of $675 bership of IDA to 156 At the end of the fiscal or less (in terms of 1992 United States dollars) year, action was pending on membership in totaled $9,4354 million: $4,073.6 million from IDA for Bosnia-Herzegovina, Eritrea, Turke- the IBRD and $5,361.9 million from IDA (see menistan, Ukraine, and the Federal Republic accompanying figure)- One loan of $30 milion, of Yugoslavia- on IDA-like terms, from resources provided by 16 Section One The Executive Board The executive directors are responsible for Territories and the countries of the CFA Zone. the conduct of the general operations of the poverty reduction, portfolio management, es- Bank, which includes deciding on Bank policy tablishment of an independent inspection in the framework of the Articles of Agreement panel, and the Bank at age fifty as it looks to- and approving all loan and credit proposals. wards its work and rale in the Twenty-first The president of the Bank is the chairman of Century. the executive directors. The president is also the chief of the operating staff of the Bank and Oeit of Financial and conducts. under the direction of the executive Opera f FmancProgand directors, the ordinary business of the Bank. Operai Po The executive directors are also responsible In fulfiling its responsibilities to oversee the for presenting to the board of governors an au- IEBRD and IDA financial and operating pro- dit of accounts, an administrative budget, the grams, the executive directors authorized a Annual Report on the operations and policies program of borrowings and liability manage- Of the World Bank, and any other matters that, ment in the context of a borrowing plan for fis- in their judgment, require submission to the cal 1994 of S12.0 billion equivalent. This board of gove.nors. Matters may be submitted program, which the board monitored on a quar- to the board ofgovernors at its annual meetings terly basis through regular market briefings, or at any time during the year. was carried out according to agreed broad pa- The executive board exercises its authority, rameters. In accordance with the simplified under the Articles of Agreement, hi three gen- budget review cycle endorsed by the board in erl areas. First, through its annual oversight of fiscal 1992, the executive directors were in- the financial and operating programs, and ad- volved in the formulation of the Bank's ministrative budgets, the board determines the medium-term planning directions (fiscal 1995- allocation of financial and staff resources for 97) and in setting the fiscal 1995 operating the coming year. Second, through its review of budget In this framework, they approved in- evaluations of completed Bank projects and the dicative IBRD lending for the year at between Bank's experience in individual sectors and $15.5 billion and $17-5 billion, with an indica- with particular policies, as well as through its tive IDA lending program of 53 billion in spe- participation in the annual review of portfolio cial drawing rights (about $7.5 billion). The perfornance, the board is actively involved in board also approved the allocation of fiscal auditing development effectiveness, thereby 1993's net income and the plan for fiscal 1994. ensuring that the Bank and member countries Opeons Evauation and can benefit from the lessons of expenrence. opertionslevaluation Through its review of specific policy proposals Pect Implemention (for example, the Bank's financial policies. In order to fulill its responsibility to review operational policies, lending terms, sectoral project evaluations and proposals for fiuture priorities), the board determines the direction evaluation activities, the board continued to of Bank policies. Through its approval of lend- give particular attention to the Operations ing operations and its review of the Bank's Evaluation Department (OED). The OED. un- country-assistance strategies, the board over- der the management of the director general, is sees the Bank's lending program. linked administratively to the Bank president Exercise of executive board authority in but is directly responsible to the executive di- these three areas results in continuous dialogue rectors. The board approved OED's work pro- between the board and the management of the gram and staff budget for fiscal 1994 and Bank. The quality of that dialogue was further reviewed the status of the deparcnent's work enhanced throughout the fiscal year on those and its report on operations evaluation. The ex- occasions of broad discussion on key issues ecutive board also agreed that. foUowing its such as emergency assistance to the Occupied discussion of OED's annual review of evalua- Review of Policy Proposals 17 tion results, the review should be published notes or new structured bonds with different and made available outside the Bank. embedded derivatives- In order to facilitate In addition, the executive directors endorsed such exchanges, and structured borrowings steps for strengthening portfolio-performance generally, the executive directors also autho- management, including the internal processes rized short-tern borrowings to be conducted in used by the Bank to oversee portfolio perfor- any currency by amending the short-term mance. In turn, they held discussions with United States dollar borrowing authorization management and staff on the 'Annual Report and the exclusion of such exchanges from the on Portfolio Performance," which covered the volume limit approved by the board applicable results of fiscal 1993. This report noted that the to the IBRD's regular repurchases of debt se- greater attention to portfolio-performance curities. management, particularly the "cleaning up" of In fiscal 1989 the board had approved a joint the operations portfolio, had helped in the resolution establishing the Debt-reduction Fa- short term to avoid a further deterioration in cility for WA-only Countries. Subsequent ex- the Bank's quantitative measures of portfolio tensions were made to the facility, and in fiscal performance. The board wfll continue to mon- 1994 the board assessed progress under the fa- itor progress and review the next steps in this cility and approved its extension until July 31, ongoing process. 1995. Operations. In fiscal year 1994 the board Review of Policy Proposals - interacted with Bank management and staff to In the course of the fiscal year, the executive set policies fundamental to the Bank's opera- board reviewed policy proposals and made de- tional priorities and strategies. Establishing an cisions that affected the operations in many ar- inspection function at the Bank was one of the eas of Bank activities, including finance, board's major concerns in the fiscal year. As a lending operations, sector policies, develop- result of its intensive discussions of the issues ment economics, and administration. and options in both formal and informal set- Finance. In fiscal year 1994, IDA policies tings, the executive directors established the and operations continued to receive the atten- objectives, mandate, and operating procedures tion of the directors. Early in the fiscal year, for an inspection panel. This panel would pro- the board reviewed IDA's policies, operations, vide an independent review mechanism for af- and fmances during the ninth replenishment pC- fected parties of an action or omission by the nod (fiscal 1991-93).' With respect to IDA re- Bank resulting from its failure to follow its op- flows, the board set the use of advance erational policies and procedures-? The three commitment authority from future reflows members of the panel were named in April amounting to SDR800 million (about $1,126 1994. The members of the panel accepted their million) annually for the period fiscal 1994-96 appointments, effective August 1, and the and further annual allocations in fiscal 1994 of panel was expected to open for business in SDR190 million (about $265 million) for the early September. "'ifth dimension" program. This program pro- A similar process was followed by the exec- vides supplementary IDA resources to those utive directors in expanding access to Bank in- IDA-only countries that have outstanding debt formation through revisions to the Bank's to the IBRD, are current in their debt-service policies on disclosure of information, which payments to both the IBRD and IDA, and have provided, among other things, access by the in place IDA-supported adjustment programs. public to a number of previously restricted doc- Such supplementary resources, therefore, take uments and the establishment of a Public In- into account the debt impact arising from IBRD formation Center at the Bank's headquarters.4 interest payments- The board reaffirmed the importance of pov- Following the launch of a pilot program of erty reduction as an integrating theme in nearly single-currency loans to respond to some bor- all Bank assistance. The executive directors as- rowers' needs in fiscal 1993 for a choice of sessed the progress that had been made in sup- terms to help reduce the currency and interest porting poverty reduction in the Bank's -rate risks in their IBRD loans, the board held activities in fiscal year 1993 and reviewed the an interirn review to assess the target ratios for adequacy of the steps taken by the Bank to the composition of the currency pools.2 The ex- improve the way it addresses poverty issues? ecutive directors also approved a structured bond borrowings and liquidity arrangement that, by applying the existing debt buyback and For dIls. see pa 170 borrowing authority, would permit the IBRD to 3 Fo - . da pw 74.' exchange outstanding structured bonds de- 'For details. see page 75. nominated in any currency for floating rate 5For deails. see page 36. 18 The Executive Board In fiscal 1993, the board approved a policy The board carefully followed developments under which countries in transition could be in the intemational economic and political en- granted a temporary waiver of the negative- vironment, often in forums such as seminars pledge clause under certain conditions. The and briefings, which allowed for a more infor- negative-pledge clause is a standard feature of mal debate with management and staff. Major all IBRD loan agreements. Its basic purpose is issues included the establishment of a donors' to protect the Bank by orohibiting, among group for the Occupied Territories and a trans- other things, member-country borrowers from fer from surplus to fund an emergency rehabil- establishing liens on public assets that would itation program for Gaza,' specific issues create a preference for other creditors on for- related to development in Africa, such as the eign exchange loans over the debt owed to the adjustment experience,'8 better health," and Bank. For countries in transition to market the Bank's role in the development of South economies, however, most of their important Africa; Latin America, a decade after the debt assets are still publicly owned, and, therefore, crisis; the East Asian economic miracle";'2 the negative-pledge clause makes it extremely and the international conference on hunger.23 difficult for public sector enterprises to enter The executive directors were also participants into much-needed financial relationships with in a cotloquium with outside experts on the re- private creditors without either requesting a cent economic developments in China. waiver of the negative-pledge clause or grant- The board reviewed the Bank's development ing equal and ratable security to the IBRD. in the context of the country-assistance strat- As a result of the eligibility requirements es- egies (CAS) of sixty IBRD and IDA borrowers. tablished under the fiscal 1993 policy, how- To ensure that these reviews provided appro- ever, no waivers of the negative pledge were priate coverage of the key issues affecting the granted. Therefore, substantial investments Bank's strategy and that individual lending op- were pending in several countries because of erations were consistent with the overall strat- the continued application of the negative- egy. the board considered the role and nature pledge clause. To address this problem, the of the CAS and set guidelines for their prepa- board approved in fiscal 1994 a modification to ration. The executive directors also kept the negative-pledge waiver that would allow abreast of the activities and progress of the in- the country-eligibility decision to be based on creasing number ofconsultative and aid groups the Bank's judgment that the country was mak- chaired by the Bank at the request of the re- ing progress in privatization, was moving to- cipient countries (see Table 1-1). ward a market economy and experiencing In addition to approving all IBRD loans and improvement in its macroeconomic situation, IDA credits, the board monitored the progress and that the waiver of the negative pledge of the Bank's overall lending program through would further contribute to the attainment of regular briefings with senior management. In these goals. In the wake of this modification, addition, to gauge the impact of the Bank's the board approved country waivers for Rus- work "on the ground" and to discuss priority sia, Uzbekistan, and Kazakhstan. development issues with senior policymakers The board continued to monitor the Bank's in member countries, selected groups of exec- role in providing technical assistance. They re- utive directors and alternate executive direc- viewed the first year of experience with the In- tors travelled to a number of borrowing stitutional Development Fund,' recommended countries. In fiscal 1994, there were four such to the board of governors the establishment of missions: to Indonesia and Fiji; the Czech Re- the Joint Vienna Institute, and discussed the public. Hungary and Slovakia; Egypt, Leba- board's report on technical assistance activi- non, and Morocco; and Benin, C6te d'Ivoire, ties in fiscal year 1993. In addition, the board and Ghana. provided guidance to staff on revising the Bank's policies as they relate to procurement Sector Policies and activities, outreach, and supervision. Development Economics The importance placed by the board on In regular board sessions, committees of the environmental sustainability in the Bank's op- whole, seminars, and informal briefings, a erations was reflected in the directors' dis- cussions of the annual report on the Bank and Ford,s.seeg6 the environment, in their major review of Bank 7 For detais. see page 44. projects involving involuntary resettlement in * Fordetails. see page 47. the period 1986-93,' and in their substantial 9 Fordetails. see page 116. involvement with the negotiations, replenish- 1 For details. see page S2 involvement *~~~~~~~~~I Far details. see pag 85. ment, and restructuring of the Global Environ- 12 For details, see page 89. ment Facility.8 1' For details. see page 49. Adminstrion 19 Table 1-I. Aid Coordination Group Meetiogs Chaired by the World Bank in Fiscal 1994 (corsortia. consultative groups. and aid groups) Date Country Location 1993 July 1-2 India consortium Paris July 12-13 Tanzania consultative group Paris October 26 Moldova consultative group Paris October 27 Belarus consultative group Paris November 22-23 Kcnya consultative group Paris December 6-8 Mozambique consultative grup Paris December 8-10 Zambia consultative group Paris December 9-10 Bolivia consultative group Washington. D.C. December 12-14 Zimbabwe consultative group Paris December 16 West Bank and Gaza Strip consultative group Paris December 19-21 Malawi consultative group Paris 1994 January 14 Kazakhstan consultative group Paris January 25-26 Egypt consultative group Paris January 27-28 Canbbean suab-group for Guyana Guyana February 24-25 Pakistan consortium Paris March 7-S Ethiopia consultative group Paris March 17-18 Sierra Leone consultative group Paris March 22-23 Zambia consultative group Paris April 19-20 Bangladesh ad group Paris April 21-22 Caribbean Group for Cooperation in Washington, D.C. Economic Development (meeting of donors) May 5-6 Mauitania consultative group Paris ..y 10-11 Peru consultative group Paris May 17 Jordan consudtative group Paris June 2 Kv gyz Republic consultative group Paris June 6-7 Romania consultative group Paris June 6-10 Canbbean Group for Cooperation in Washington, D.C. Economic Development June 9-10 Bulgaria consultative group Paris June 16 Nicaragua consulative group Paris June 27-28 FIYR Macedonia consultative group Paris June 30-July 1 India Development Forum 1994 Paris Noar: The meeting of the Nepal aid group. ornay scheduled fir Apnl 28-29, 1994 was postponed. number of sector policies, their implementa- considered the outline and final draft of World tion, and "best practicest' were reviewed. In DevelopmentReport 1994, which examined the the area of human resources development, the interplay between infrastructure and develop- executive directors discussed the lessons of ex- ment.17 perience with higher education'4 and, on sev- eral occasions, debated the issues of gender Administration and development, whicn culminated in a policy The board also dealt at some length with the paper on enhancing women's participation in Bank Group's administrative policies and prac- economic development.t5 In the area of trade, tices. In fiscal year 1994, it was involved in the board considered a preliminary assessment issues of staff benefits, including the quadren- of the completed Uruguay Round of GAiT nial review of benefits and eligibility for expa- talks, as well as the emergence of "new region- triate benefits. They also reviewed their own alism"' and ics consequences." Other important sector reviews included Bank Group issues with regard to telecommu- ,5For daiLs. see pa 37. nications, ransport policies, and financial and "For details. see page 31. private sector development. The board also '7For details. sec page 43. 20 The Executfive Board operational travel policies and made modifica- quacy of the work of thc operations evaluation tions that aligned these policies with those of and internal audit units. The committee pro- the staff. As it does each year, the executive vides a channel through which the intemal and directors considered the issues affecting staff external auditors can communicate with the ex- compensation and approved a salary adjust- ecutive directors. ment. They made a recommendation to the In pursuing its responsibilities during fiscal governors on the remuneration of the Bank's 1994 the committee nominated a firm of pri- president. vate, independent, internationally established In a number of meetings, the board followed accountants to conduct the annual audits of the the implementation of the rehabilitation of the Bank. The committee reviewed the scope of Bank's main complex building. They also re- the independent accountants' examination and viewed the arrangements for the Bank's annual their annual audited financial statements. It meetings. also held in-depth discussions with the external As the fiftieth anniversary of the founding of auditors on the scope of their work on special the Bretton Woods institutions approached, audits, particularly those carried out on the the executive directors extensively involved main complex rehabilitation project. The com- themselves in the planning for commemorating mittee reiterated the importance of maintaining the anniversary and in collaborating with Bank a close working relationship with the external management and staff on the drafting of the auditors- Several meetings were held in the Bank's current and future agenda. course of the year to this effect. In addition, through regular meetings with the Bank's se- Development Committee nior financial officers. thie committee helped to As in previous years, the executive directors provide assurance to the executive board that were actively involved with the Development the financial affairs of die Bank were properly Committee, assisting committee members in conducted. In this regard, the committee re- preparing for their meetings, considering the viewed and endorsed recommendations per- draft provisional agenda, and discussing the taining to the fiscal 1994 implementation of the president's reports and background papers that IBRD's policy for loan-loss provisioning. It were the basis forthe ministers' discussions. In was also briefed on the status of the current addition, several months prior to each Devel- Bank loan portfolio- In addition, the committee opment Comniittee meeting, the executive di- reviewed the situation of countries in arrears rectors convened as a com.rnittee of the whole and heard reports on recent developments in to review the preliminary agenid and the out- nonaccrual countries. The comniit-ce also re- lines for the background papers in order to en- viewed and endorsed preliminary recommen- sure that the main issues and concerns of dations regarding the annual allocation of the committee members were well reflected in the IBRD's net income. Another area examined documentation. was the adequacy of the Bank's internal con- In preparing for the committee's semiannual trol systems. As part of its oversight function, meetings, the board discussed a range of pa- the committee under-took its annual review of pers and reports that touched on many issues the work programs of the Operations Evalua- of importance to the Bank's member countries, tion Department (OED) and Internal Auditing including the adjustment experience in, and im- Department (LAD). Two subcommittees of al- plications for, low-income countries; social se- ternate executive directors were appointed to curity reforms and social safety nets in assist the committee in carrying out its man- reforming transition economies; reports on date with regard to the OED and the LAD. In population in developing countries' and migra- addition, the committee reviewed numerous tion flows, and Bank activities in women in papers by the OED as part of an ongoing effort development." The executive directors' Steer- to identify problems or policy issues for con- ing Committee reviewed the communiques sideration by the executive directors. released by the Development Committee fol- The committee consists of eight executive di- lowing its semiannual meetings and made sug- rectors. Marc-Antoine Autheman has served gestions to ensure that the board's work as chairman of the committee since March program was responsive to the directions set 1994. by the committee. Committee on Cost Effectiveness and Bud- get Practices. The Committee on Cost Effec- Board Committees tiveness and Budget Practices (CEBP) was Joint Audit Committee. Established in 1970, established in 1986 to examine aspects of the the Jc.nt Audit Committee (JAC) represents shareholders in overseeing the soundness of "For deails. see page 37. the Bank's financial practices and the ade- "For dctis. see page 36. Board Committees 21 Bank's business processes. administrative pol- recruits people with the skills needed to carry icies, business standards, and budget practices out its changing work program), and possible that significantly affect the cost effectiveness changes in the local currency option of the staff of its operations. retirement plan. Two of the major actions un- Fiscal year 1994 was the first year that the dertaken by the committee were to review the committee's mandate was expanded to include results of the quadrennial benefits survey and the review of all the major papers in the Bank's of the 1994 review of staff compensation. Fol- budget cycle-the fiscal 1993 retrospective re- lowing the committee's endorsement, the view, IBRDIIDA planning directions for fiscal board approved management's recommenda- years 1995-97, the fiscal 1994 mid year review, tions with respect to both items. The role of the and the IBRD programs and fiscal 1995 budget. Bank's fieid offices was also a focus of the Foliowing meetings to consider the relevant pa- committee's scrutiny. pers, the committee prepared reports to the The committee consists of eight executive di- board conveying its views on the planning di- rectors. Jean-Pierre Le Bouder has served as rections paper and on the budget for fiscal chairman of the commitee since January 1993. 1995. The discussion of the latter was added to Committee on Directors' Administrative the committee's work program as a follow-up Idatters. The Committee on Directors' Admin- to the fiscal 1994 budget discussion during istrative Matters (CODAM) was established in which the importance of the committee's active 1968 to consider administrative matters relat- involvement in the planning and budgeting pro- ing to executive dirctors and their alternates, cess was strongly encouraged. advisers, and staff. The commiuee recom- The committee devoted a number of meet- mends to the executive board the formulation ings to considering cost-saving issues that cov- and implementation of new administrative pol- ered a wide range of Bank activities, from icies and changes in existing policies. improvements in the efficiency with which Major issues taken up by the committee in work is carried out to systematic and incentive the fiscal year included remuneration of advis- changes in processes and procedures. As a part ers and executive directors' assistants; execu- of this exercise, the committee requested and tive directors' travel to member countries was given a presentation on the work of the outside of their constituencies (group travel); staff Committee on Business Innovation and travel policy for executive directors; and con- Simplification (BIAS). Thereafter, the BIAS sideration of executive directors' administra- Committee sought the advice and views of the tive expenses. CEBP on the streamlining of some board doc- The committee coordinates many of its rec- umentation. ommendations with a similar comniittee estab- The committee consists of eight executive di- lished by the executive board of the MEF. rectors. Angel Torres has served as chairman The committee consists of six executive di- of the committee since December 1992. rectors. John Cosgrove has served as chairman Committree on Personnel Policy Issues. The of the committee since January 1993. committee, which was established in 1980, is The Ad Hoc Committee on Review of Board charged with keeping under continuing review Committees. The Ad Hoc Committee on Re- and, where appropriate, advising the executive view of Board Committees was established in directors on, staff compensation and other sig- December 1993 to review the function, struc- nificant personnel policy issues. It also main- ture, and terms of reference of standing com- tains close liaison with the executive directors mittees of executive directors, including of the International Monetary Fund (DIM) on criteria for appointments to committees. It these issues, bearing in mind the general par- completed its work in April 1994. The commit- allelism of the two institutions. tee's recommendations will be implemented One of the main undertalings of the commit- following the 1994 regular election of executive tee during the year was the continuing exami- directors. nation of the complex subject of expatriate The conclusions and recommendations in benefits. The board subsequently took up the the committee's report, which was approved matter, first, on the basis of the committees re- by the executive directors in May 1994, aim to port and recommendation, and then, on the ba- improve and strengthen, rather than funda- sis of a paper from management. The board mentally change, existing arrangements for finally decided not to change the current policy. exectutive directors' committees. The main con- The committee reviewed the Bank's and the clusions and recommendations are summa- International Finance Corporation's (IFC) per- rized below. sonnel policies and practices, results of the Functions and structure of committees. It was 1993 staff attitude survey, issues related to agreed that the overall objective of committees skills mix (that is, how the Bank identifies and should be to strengthen the efficiency and ef- 22 The Executive Board fectiveness of the board in discharging its re- Composition and guidelines for appointment sponsibilities. To meet this overall objective, to committees. It was further agreed that ap- committees need to carry out work programs pointments to committees should be governed that facilitate the process of consensus building by general principles that can be applied flex- and decisionmaking in the board and assist the ibly, the two most important of which are board in discharging its oversight responsibili- consultation among executive directors and ties. Generally. com..iittees need to focus on a balanced representation from the board. Spe- limited number of clearly defined priority is- cifically. appointments to committees should sues. reflect economic and geographic diversity of In view of the overall workload of commit- the Bank's member countries with a view to tees and the steadily growing importance and ensuring balanced representation between bor- need for review of operations evaluation and rowing and nonborrowing member countries. development-effectiveness issues in the con- The committee consisted of four executive text of the Bank Group's operational activities, directors. Jorunn Maehlum served as chairman it was furtheragreed that (a) the mandate of the of the committee. Joint Audit Committee should focus on exter- Executtive Directors'. Steering Committee. nal and internal audit and financial policy The Executive Directors' Steering Committee, issues and (b) a new committee of eight exec- an informal advisory body of executive direc- utive directors should be establibhed to review tors composed of the dean and the co-dean of operations evaluation and development-effec- the board, as well as the chairpersons of the tiveness issues. other standing board committees, meets It was agreed that the mandates of all com- monthly to consult on, and review with the mittees should apply uniformly to the EFC. Bank's vice president and secretary, the exec- Interaction between committees, Bank man- utive directors' work program. The committee agement, and the board. New procedures were also provides a consultative framework for var- approved to strengthen interaction between ious board issues. In addition, the committee committees, management, and the board. reviews the Development Committee's com- These procedures cover reporting require- muniqu6s to ensure that the implications for ments of committees and management to the the executive directors' work program are fully board and are designed to facilitate board dis- considered. The steering committee has also cassion of formal management proposals (in- taken a leadership role in ensuring the imple- eluding, in some cases, management option mentation of the new board policies and pro- papers) submitted to committees for prior re- cedures, including, among others, the view. determination of the scheduling of country- A number of recommendations aimed at im- assistance strategies and periodic reviews of proving efficiency in the conduct of committee sector policies. The committee consists of six business were also approved, including, for ex- executive directors. The dean of the board, ample, recommendations for building consen- Ibrahim Al-Assaf, has served as chairman sus among executive directors on controversial since September 1993. issues, for identifying priority issues for board The meetings of committees of the executive consideration, and for board approval of com- board are open to participation by all executive mittee recommend2tions on an absence-of- directors. objection basis. 23 Section Two The Economic Scene: A Global Perspective Economic activity in the industrialized coun- widely. Growth in East Asia and the Pacific, of tries slowed further in 1993, to 1.2 percent. as 9.2 percent, continued to outpace that in every a result of sluggish growth in Japan and reces- other developing region by at least five per- sion in continental Europe (see Table 2-1). Re- centage points. China remained the fastest covery in the United States was well underway growing economy in the region-and the by the fourth quarter of 1993, when output ex- world. Growth has averaged 13 percent in the panded by 7 percent on an annual basis. Can- past two years. as the government continued to ada and the United Kingdom experienced a implement market-based reforms and as trans- modest recovery in 1993. The slow pace of national corporations continued to commit overall growth in 1993 was associated with- ris- record amounts of investment. In July 1993, ing unemployment, which reached 8.2 percent the Chinese authorities undertook measures to in the industrial countries as a group, topping slow the torrid pace of growth and ease rising out at 10 percent of the labor force in several inflationary pressures. Malaysia and Thailand, European countries. two other prime recipients of foreign direct in- Reflecting the significant gap between actual vestment, once again displayed outstanding and potential output in most industrial coun- growth performance. These countries began to tries, inflation continued to ease, as growth in show strains resulting from shortages of skilled the GDP deflator fell to 3.3 percent, down from labor and adequate infrastructure, as well as 4 percent in 1992.' from the need to address longer-term issues, The developing countries-excluding the such as upgrading production to higher value- countries in transition in Central and Eastern added sectors as competition in the labor- Europe and the former Soviet Union (ESU)- intensive sectors increases from countries such grew by an estimated 4.5 percent in 1993, up as China, India, and Indonesia. from 3.6 percent in 1992, thereby exceeding Latin American and the Caribbean once industrial-country growth by more than three again experienced gains in output as refonns in percentage points for the third straight year many countries continued to take root and (see Table 2-2). Underlying these aggregates, show results. Growth for the region as a whole, however, were widely differing trends between supported by large inflows of foreign private the countries in transition and the traditional capital flows, rose to 3.5 percent, up from 2.8 universe of developing countries. Output in percent in 1992. Individual country perfor- Central and Eastern European countries and in mance was mixed, however. Although Brazil's the republics of the FSU fell by an estimated economy grew by rit estimated 4.9 percent (up 7.4 percent in 1993. Although the rate of de- from a decline of close to I percent in the pre- cline slowed from 12.7 percent in 1992_ it was vious year), the inflation rate inc-qssd diramat- the fourth straight year of diminishing output. ically. Political uncertainty, lower oil prices, The continued robust growth in the tradi- and policy weaknesses moved Venezuela into tional developing countries in the face of re- recession during the year. Growth, which cession in the industrialized countries can be slowed in Mcxico to about 2 percent in 1992 attributed to several factors. These include the after several years of more robust gains, was effects of increasingly widespread and sus- stagnant in 1993, as tighter credit conditions tained policy reforms in many countries; low aimed at curbing a bulging external deficit international interest rates (that partly offset slowed activity. The signing of the North the depressing effect on commodity exporters American Free Trade Agreement (NAFTA), of falling export prices); and, associated with these two factors, the enormous continued surge in private capital flows to developing 'Although inflationary pressures remained in check, the countries- stemngth of the recovery in the United Stales moved the Growth prformane amongthe mai devel- Federal Reserve Board to increase short-term dollar inter- Growth performance among the main devel- est rates in the first quarter of 19g4. European and Japa- oping country regions continued to diverge nese raes. however. remain low. 24 The Economic Scene: A Global Perspective Table 2-1. G-7 Countries: Output, Inflation, Investment, and Unemployment, 193-93 (aveage annual percentagc changc: unemployment rates in percent) G-7 country 198393 1992 1993 1983-93 1992 1993* Real GDP GDP deflator Canada 2.7 0.7 2.4 3.3 1.2 1.8 France 2.1 1.4 -1.0 4.2 2.3 1.5 Gennanyb 2.6 1.2 -1.9 2.9 4.4 3.8 Italy 2.2 0.9 -0.7 7.7 4.7 3.8 Japan 3.7 1.2 1.1 1.5 1.8 1.4 United Kingdom 2.2 -0.5 1.9 5.3 4.3 2.5 United States 2.8 2.6 3.0 3.7 2.9 2.8 G-7 average 2.8 1.7 1.3 3.7 3.0 2.6 Total OECD 2.8 1.7 1.2 5.1 4.0 3.3 Gross fixed investment Unemployment rate Canada 3.3 -2.1 0.5 9.8 11.3 11.2 France 1.1 -3.1 -6.5 9.9 10.4 11.7 Germanyb 2.9 0.3 -5.1 7.3 5.9 7.4 Italy 1.4 -1.5 -9.1 11.0 11.5 10.4 Japan 5.3 -4.3 -7.4 2.5 2.2 2.5 United Kirsgdom. 3.2 -3.3 -2.9 9.2 9.8 10.3 United States 3.4 6.2 10.9 6.8 7.4 6.8 G-7 avcrage 3.3 1.3 1.6 6.8 7.1 7.1 Total OECD 3.6 1.9 1.9 7.5 7.8 8.2 a. Preliminary. b. German data rcfer to westrn LAnder only. Souna: Orapisaxion ror Economic Coopeation and Develpment (OECD). International Monetary Fund (IME:). however, bolstered the positive longer-term tion of the deep social and structural challenges outlook forthe economy. Argentina, Chile, and facing a new administration. Colombia experienced growth of more than 5 Growth in South Asia slowed to 3.8 percent, percent. in part the result of devastating floods in Paki- Sub-Saharan Africa (excluding South Africa) stan towards the end of 1992 and weak indus- posted a modest increase in GDP of 1.4 per- trial growth in India. Nevertheless, countries in cent; the region was helped by recovery from the region showed improvements in their ex- the most severe drought to hit Eastern and ternal account performance, with increased ex- Southern Africa in this century, as well as by ports and private capital inflows. The new gradually improving performance in countries government in Pakistan confirmed its adher- that have persisted with adjustment and reform ence to the reforn policies of the previous tran- policies. Although overall growth remained sitional administration. India continued its low, some hopeful signs also emerged: Civil moderately paced but steady economic reform war came to an end in Ethiopia and Mozam- policies. Although inflows of foreign capital to bique, beverage prices moved higher during the that country were small by comparison with year, and expectations for at least a stabiliza- leading East Asian and Latin American econ- tion in nonoil commodity prices became some- ornies, they were nonetheless far greater than what firmer. The 50 percent devaluation of the at any time in the past. CPA franc and the subsequent prompt support A fall in world oil prices of more than 10 per- from multilateral lenders and the French gov- cent contributed to a marked decline in growth, emnment substantially improved prospects for to an estimated 1.9 percent, in the Middle East the revitalization of the adjustment process in and North Africa. Output fell almost 2 percent the CFA Zone countries. Finally, the South Af- in Algeria as the country's political crisis deep- rican economy began its recovery from pro- ened. Growth was alnost negligible in Egypt, longed recession with the passing of drought, where the process of adjusting fiscal imbal- rising gold prices, and the ending of interna- ances continued. tional sanctions, thereby providing a more fa- As a group, the transitional economies in vorable backdrop for the country's wansition Central and Eastern Europe and the FSU suf- to multiracial democracy. That process has fered a further decline in output of more than 7 brought to the fore both hopes for substantial percent. The republics of the FSU contributed future economic progress, as well as recogni- the most to this decline, as their output fell 13 Recent Trends In External Debt and Debt Strategles 25 Table 2-2. Low- and Middle-income Economies: Growth of GDP and GDP per Capita, 1982-93 lavemgc annual percentagc change unless otherwise noted) CGDP GDP per capita Reglon or income group 293290 299493 1991 1992 199D 1982-90 1991-93 1991 1992 1993" Low- and middle-incorne economies 3.4 0.7 0.2 0.3 2.1 1.4 -1.1 -1.6 -1.5 0.2 By regional group Sub-Saharan Africa' 2.4 1.4 1.5 1.2 1.4 -0.7 -1.3 -3.5 -1.8 -1.7 East Asia and Facifice 8.1 8.5 7.0 8.7 9.2 6.4 6.9 5.5 7.2 7.5 South Asiad 5.7 4.0 2.0 4.6 3.8 3.4 1.5 -0.2 2.5 1.8 Middle East and North Africa 0.0 2.7 3.1 4.0 1.9 -3.1 -0 3 -0.2 1.1 -1.1 Europe and Central Asiar 1.9 -10.0 -9.3 -12.7 -7.4 1.1 -10.6 -9.8 -13.2 -8.0 Latin Amenrca and the Caribbean' 2.3 3.1 3.4 2.8 3.5 0.3 1.2 1.6 1.0 1.6 By income group Low- and middle-income economies, excluding transition economies in Europe and Central Asia 3.8 4.5 4.1 3.6 4.5 1.7 2.5 2.0 1.7 2.9 a. Esdmated. b. Excludes South Africa. c. American Samoa. Cambodia, China, Fii. Guam, Indonesia. Kiribad, Republic of Korea, Lao People's Democratic Re- public, Macao. Malaysia. Mongolia. Myamar. New Caladonia and Pacific Islands' Trust Territory, Papua New Guinea. the Philippines, Solomon Islands, Thailand, Tonp. Vanuntu, Viet Nam. and Wcstern Samoa. d. Afghanistan. Bangladesh. Bhutan, India, Maldives, Nepal. Pakistan, and Sri Lanka. e. Algcria. Bahrain. Egypt, Islamic Republic or Iran, Iraq. Jordan. Lebanon. Libya, Morocco, Oman, Saudi Arabia, Syrian Arab Republic. Tunisia, and Yemen. f. Albania. Bulgaria. Czechoslovakia (through 1992; the Czech Republic and the Slovak Republic thereafter), Gibraltar, Greece, Hungary, Isle oF Man. Malta, Poland. Portugal. Ronania, Turkey. republics of the former Soviet Union. and republics of the former Yugoslavia. g. All American and Canbbean economies south of the United States, except Cuba. SouRcE: World Bank percent on top of a 20 percent drop in 1992. mated at $1,700 billion at the end of 1993, an Political uncertainty and macroeconomic insta- increase of 6.5 percent in nominal terms, or bility in Russia continued throughout the year. about $108 billion, over the previous year. Of Nonetheless, the government maintained prog- this amount, long-term debt outstanding stood ress on the structural reforn agenda, albeit at a at $1,411 billion, an increase of 7.9 percent halting pace. The privatization program main- ($103 billion) (see Table 2-3). The increase in tained momentum; by the end of 1993, two long-term debt is accounted for principally by thirds of all small service enterprises had been net inflows of around $72 billion and a privatized. Output in Poland grew for a second currency-valuation factor of over $20 billion re- year in a row, while economic contraction in sulting from the fall of the United States dollar Hungary and the Czech Republic appeared to against the yen in 1993. In addition, capitaliza- be drawing to a close. There is evidence, es- tion of interest through debt reschedulings pecially in those three countries, that "new" added $15 billion to long-term debt (though largely private sector activity (concentrated in much of this was offset by reduction in short- services, construction, and the trades) is be- term debt, in which interest arrears are classi- ginning to account for a significant share of out- fied for debt-accounting purposes), while put (approaching 50 percent in some cases) and voluntary debt reductions (buybacks, debt ex- is providing support for growth. changes, equity swaps, and so forth) were cx- Recent Trends in External Nebt pected to have reduced debt by $9 billion. Private creditors provided 61 percent, or $44 and Debt Strategies billion, of the overall $72 billion net flow of The total external debt of all developing long-term debt to the developing countries, an countries, including short-term debt, was esti- increase of $2 billion from 1992. For the second 26 The Economic Scene: A Global Perspective Tabk 2-3. Low- and Middle-income Economies: Long-term Debt and Debt Service, Selected Years, 1988-93 (billions of US dollars; percenlages) All low- and Severely indebted middlc-income middle-income economies economics Sub-Saharan Africa Item 1988 1992 19931 19I 1992 199?3 198B 1992 19938 Debt outstanding 1,128.1 1,308.2 1,410.9 440.0 456.9 475.2 135.0 15535 156.4 Official (9) 46.0 50.9 51.0 38.4 47.0 46.4 60.6 73.0 74.0 Private (%0) M.D 49.1 49.0 61.6 53.0 53.6 39A 27.0 26.0 Debt as % of GNP 29.1 29.6 31.7 38.8 36A 37.2 57.1 55.8 53.7 Debt service 154.2 155.3 161.1 51.8 51.0 53.6 11.2 12.0 9.8 Interest payments 66.1 57.1 61.5 28.4 18.2 20.2 5.1 5.6 4.8 Ofircial (%) 27.6 39.3 40.8 18.9 42.4 42.4 42.7 32.9 36.6 Private (%) 72A 60.7 59.2 81.1 57.6 57.6 57.3 67.1 63A Principal payments 88.0 98.2 99.6 23.4 32.8 33A 6.1 6.4 5.0 Officil () 28.4 30.3 33.1 31.2 31.2 36.4 31.5 30.3 42.2 Private (96) 71.6 69.7 66.9 68.8 68.8 63.6 68.5 69.7 57.8 DCbt-service ratio (%)b 19.9 16.3 16.3 31.5 27.1 26.7 16.4 14.5 11.7 Avenage interest rate on new commitments (%1' 6.6 6.1 na.; 7.5 6.7 na. 4.1 2.9 n.a. official (96) 5.0 5A n. 6.3 6.9 n.a. 3.4 2.8 n.a Private (6) 8.0 6.8 n.a. 8.2 6.6 n.a. 7.1 4.9 na. Disbursements 1215 160.0 171.2 34.1 37.9 44.9 10.5 85 7.7 official (9) 39.1 31.2 3.6 38.1 31.1 38.0 61.9 77.2 81.9 Private (%) 60.9 68.8 64.4 61.9 68.9 62.0 38.1 22.8 18.1 Net resource flows on long- termlendinge 335 61.8 71.1 10.7 5.1 11.6 4.4 2.1 2.8 Net transfers on long-term lendinge -32.6 4.7 10.2 -17.7 -t3.1 -8.6 -0.7 -35 -2.1 Norm Stock, flow, and economic data cover 148 countries of which 129 report to the World Bank DebtorRporting Sym. n.a. Not available. a. Preitminary. b. Debt service as a perentage of exports of goods and services. c. Covers the countries reporting to the World Bank Debtor Rcporting System. d. Disbursements minus (actual) principal repayments. e. Net resource flows minus (actual) interest payments. SouRCE: World Bank. year in succession, private net flows exceeded Europe-are estimated to have raised over $34 official ones, an occurrence otherwise not ex- billion in public and private bond placements. periet'ced since the onset of the debt crisis of Official net flows increased sharply by $8 bil- the early 1980s. East Asian and Latin Ameri- lion, to $28 billion. Net flows from multilateral can countries continued to borrow actively in sources, including the World Bank, are esti- financial markets, as falling short-term and mated to have risen to around $18 billion, up long-term intemational interest rates and an in- from $12 billion in 1992 (see Table 2-4). Bilat- tense (if temporary) vogue for emerging market eral lending was estimated to have risen by 22 debt facilitated a substantial increase in bond percent, to almost $10 billion. The share of issuance. Ten countries-Argentina, Brazil, concessionality in official debt is also estimated Mexico, and Venezuela in Latin America; to have risen, reflecting the restructuring of China, Korea, and Thailand in East Asia; and nonconcessional debt on concessional terms in the Czech Republic, Hungary, and Turkey in Egypt, Poland, and those countries benefiting Recent Trends In External Debt and Debt Strategies 27 Tabl 2-4. Long-term Financial Flows to Developing Countries, 1986-93 (bflions of US dollars) Item :986 1987 1988 1989 1990 1991 1992 1993 Long-term aggregate net resource flows 64.0 67.8 74.1 79.4 102.2 121.2 156.6 176.6 Official development finance 44.0 43.9 40.8 41.1 59.2 63.0 54.6 63.4 Official grants 16.0 16.7 18.3 19.0 28.5 32.9 34.5 355 Net official loans 28.0 27.2 22.5 22.1 30.7 30.1 20.1 27.9 Bilateral 12.8 12.2 11.4 10.4 159 15.2 7.9 9.6 Multilateral 15.2 15.0 11.1 11.7 14.8 14.9 122 18.3 Net private loans 9.2 8.6 11.0 10.1 12.9 13.8 41.7 43.7 Commercial banks 1.8 1.1 7.9 3.9 -2.5 5.4 185 n.a Bonds 0.8 1.0 2.9 4.2 2.3 7.4 63 na. Others 6.7 6.5 0.2 2.0 13.1 1.0 16.8 n.a. Foreign direct investment 10.1 14.5 21.2 24.7 26.3 36.9 47.3 56.3 Portfolio equity investment' 0.6 0.8 1.1 35 3.8 7.6 13.1 132 Long-term aggregate net transferse -5.0 -3.0 -5A 2.2 25.6 44.5 79.6 91.5 Interest on long-tern debt 57.6 58.3 66.1 60.2 29.1 59.6 57.1 61.5 Profit remittances on FDI 11.4 12.4 13.4 17.0 17.6 17.0 19.9 23.6 n.a. Not available. a. Prelimnuary. b. World Bank staff estimates available since 1990 only. c- Long-tenn aggrepte net resoume flows miinus interst payments and reinvested and renitted profits. SouRcE: World Banko from enhanced Toronto terms, as well as new Mozamrbique in 1991. Guyana in 1992, and concessional flows to sub-Saharan Africa, the Uganda and Bolivia in 1993. These operations Central Asian republics, and Viet Nam. extinguished $623 million of principal in com- Voluntary debt-reduction operations, includ- mercial debt at an average price of 14 cents on ing official debt forgiveness by key Arab cred- the dollar. Similar buyback operations were in itors to countries in the Middle East, are preparation for another ten countries: Albania, estimated to have reduced debt by about S9 bil- Ethiopia. Guinea, Mali. Mauritania. Nicara- lion in 1993, bringing the total of :nch reduc- gua, Sio Tom6 and Principe, Sierra Leone, tions since 1988 to almost $100 billion. The Tanzania, and Zambia. 'Brady" type of debt and debt-service reduc- Restructuring of official bilateral debt under tion operation carried out by Argentina in April Paris aub auspices also contributed to debt re- 1993 rrduced the face value of its debt by close duction. During 1993, agreement was reached to $3.3 billion. Jordan canie to an agreement with eleven countries to reschedule or restruc- with its commercial creditors in December ture$1.2billionindebts Sixofthe agreements- 1993 to restructure an estimated $900 million of with Benin, Burkdna Faso, Guyana, Mauritania, principal and arrears. The Dominican Repub- Mozambique, and Viet Nam-were reached lic, after reaching agreement in principle with under enhanced Toronto terms. In November bank creditors in May 1993 to restructure $1.1 1993 the French government canceled F800 billion of principal and arrears, continued to million of the debt of four CFA countries, and, make progress towards a final agreement, in the wake ofthe devaluation of the CFA franc while Bulgaria reached an agreement in princi- in January 1994, France proposed canceling ple with its creditor banks on restructuring $9.3 another F25 billion owed by the CFA Zone billion of commercial bank debt. Brazil also countries affected by the exchange-rate adjust- continued discussions on a restructuring of ments. The focus of the debt strategy, espe- about $50 billion of obligations.2 cialy for the severely indebted low-income Use of the other main venue for commercial countries, continues to shift from repeated re- debt reduction, the Debt- reduction Facility for schedulings to the maintenance of a positive IDA-only Countries, also increased. This facil- cash flow as a means of accelerating the re- ity, created in 1989, provides grants to eligible sumption of these countries' extemal viability. [ A members to reduce their commercial debt. Significant bilateral official cofinancing sup- port has also been made available for facility- :2In April 1994. Brai implemented the deal with its ctn- mercial creditors and cxchanged old debt for new long- supported operations. By the end of 1993, five term bonds. The debt collateralized by the zcro-coupon operations had been completed: Niger and bonds amounts to S:7 bilon. 28 The Economic Scene: A Global Perspective Accumulated interest arrears were reduced fers to developing countries were positive for by about $10 billion in 1993. the second year in the fifth consecutive year. They were also sub- succession that arrears fell rather than in- stantial, amounting to 2.1 percent of develop- creased. A large portion of this reduction came ing country GDP, an increase from 1.8 percent from clearance of arrears in Latin America, es- in 199' pecially Peru. and the former Soviet Union. Because the flow of FDI to industrial coun- Rescheduled interest payments in 1993 were tries declined, developing countries are esti- estimated at $15 billion, up slightly from the mated to have increased their share of global previous year's $14.2 billion. E:DI from 31 percent in 1992 to around 35 per- Despite the increase in developing country cent An improved economic climate has made debt stocks, key debt ratios did not worsen as foreign investment attractive in many coun- economic and trade conditions improved. Al- tries; privatization of state-owned enterprises though the ratio of developing countries' long- has also boosted inflows, especially in Latin term debt to GNP rose to 31.7 percent from America and Eastern Europe. China, by far, 29.6 percent in 1992, the increase partly re- was the largest recipient of Fl)I, with $15 bil- flected large currency devaluations that re- lion flowing into the country in 1993, up $4 bil- duced the dollar value of GNP in some Middle lion over the 1992 total.3 In general, E1DI Eastern. European, and Central Asian coun- continues to be concentrated in a limited num- ties. Significant increases in the outstanding ber of developing countries: Five countries-in debt of East Asian and South Asian countries, order of FDI amounts, China, Mexico, Argen- as well as of the FSU, also contnrbuted to the dna, Malaysia, and Thailand-received 59 per- rise. The long-term debt service-to-exports ra- cent of FDI flows. Regionally, FDI favored tio remained constant at 16.3 percent. This ra- East Asia ($25 billion), Latin America ($18 bil- tio has hovered around the 16 percent mark for lion), and Europe and Central Asia ($9 billion). four years in a row. Flows to most low-income countries were stag- nant, however, reflecting the slow growth of Capital Flows on the Increase official flows and the lack of access of most of Aggregate long-term net resource flows to these countries to private capital markets. In developing countries--defined as net flows of some instances, low-income countries have long-term debt, grants (excluding technical as- suffered from a lack of enthusiasm by the pri- sistance), and equity investment (foreign direct vate sector-for example, commercial banks in and portfolio-equity investment)-are esti- sub-Saharan Africa. mated to have increased by $20 billion to $177 Portfolio-equity flows appear to have been billion in 1993 (see Table 2-4). Net flows of simflarly concentrated, with three quarters of long-term debt of $77 billion were the largest the $13 billion total going to East Asia and single component of aggregate resource flows. Latin Amenca. Developing country securities Of these debt flows, $28 billion was from offi- are currently underrepresented in the portfo- cial creditors. Official creditors also provided lios of industrial country investors, given their grants of $36 billion, up $1 billion from 1992; big diversification benefits and higher risk- official finance, therefore, amounted to $63 bil- adjusted returns. If countries persist with their lion, up $9 billion from th: previous year. policy reforms, a gradual rebalancing of these Net foreign direct invesTment (FDI) rose 19 growing portfolios is likely to increase private percent, or $9 billion, to $56 billion. Equity- flows to developing countries significantly. At portfolio investment, which reached $13 billion the same time, such flows are lkely to be mor in 1992, stayed at that level. In addition to F1D volatile than FDI because they are more sen- and portfolio investment, private flows in the sitive to global interest-rate movements and to form of long-term debt amounted to $44 billion. positive or negative "bandwagon" effects.4 Private sources, therefore, are estimated to have been responsible for 64 percent of overal Primary Commodity DevelopmnDts net resource flows to the developing countries, Primary commodity market trends in 1993 an increase of more than 150 percent since were mixed, with nonoil commodity prices ris- 1990. This amount, in constant dollars, ingmodestly and oil prices falling sharply once matches the level attained in the early 1980s again. The dollar index of nonoil commodity- before the onset of the debt crisis. Aggregate long-term net transfers to devel- oping countries-defined as net resource flows less interest payments on long-term debt and 3These figres may bc inlated by Chinse capital that is profits on FDI-increased by $12 billion to $92 1%uted through Hong Kong back into Chinaand then re- billion, as increased net flows more than offset MTm turbt'e e arly in ln4 in the energing coutny boud the increase in interest and profits. Net trans- markets is a tesament to the volatility of such flows. World Trode Growth Slows 295 Table 2-5. Commodity Prices, 198693 (average annal peretage charUg) Commodiy price 1986-91 1991 1992 1993 In current-dollar terms Food and beverags --4.4 -2-1 -6.6 0.7 Nonfood agriculture 4.6 -0.8 -4.9 -5.4 Metals and minerals 6.1 -Li -IA -14.6 Total nonoil -09 -3.0 -4. 1.4 Petroleum 7.7 -18.4 -0 -[1.6 In real ternmt Total nonoil -5.5 -5.1 -8.2 1.0 Petroleum 2'7 -20.2 -4.6 -12.1 In special drawing tight (SDRs) Total nonoil -3.8 -3.8 -6.9 2.3 Petrleum 43 -19.A -33 -10.8 Naos Weights in the commodity price indcxes are commodity exports of al devdoping countries. a. Deflated by unit-value index of mnan_uf exports from the G-5 counries (Frianc Germany. Japan. the United Kingdom, and the United States) to the developing counties. Soumuc World Bank. prices was 1.4 percent higher than in 1992, sup- output capacity and higher world production ported by gradually reviving growth in the added to the downward pressure on prices in industialized countries, continued growth in aluminum and iron ore. Increased exports from the developing countries, and lower interna- Russia affected the aluminum and nickel mar- tional interest rates (see Table 2-5)_ In terms of kets. Late in the year, lead, zinc, and nickel constant 1990 dollars (using the unit-value in- prices rallied to varying degrees, reflecting the dex of exports ofmanufictured goods from the more substantial production cutbacks that five largest industrialized countries to the de- have taken place in these industries. veloping countries as the deflator) nonol prices Crude-oil prices fell by $2 a barrel, or 11.6 were up i percent. By either measure, the percent, to $1530. Much of the decline oc- slight increase in 1993 was the first in five years curred in the second half of the year. The pres- and followed a 27 percent fall (in constant dol- sure on oil prices derived from several sources. lar terms) during the period 1988-92. Indeed, A weak increase in demand by the industrial- constant dollar prices in 1993 were almost 50 ized countries was more than offset by higher percent below their postwar average. Ifthe rise output from the North Sea and Canada Al- in the nonoil commodity price index was mild, though production fell steeply in the FSU and it was at least fairly steady over the course of Eastern Europe, consumption fell a little more the year; by the fourth quarter, prices were 3.7 steeply yet, relcasing more oil to the market. percent above the cyclical low reached in the Fmally, although demand for oil increased in same period of 1992. On a fourth quarter-to- the developing countries (by about I million fourth quarter basis, the largest contributions barrels a day), output in these countries in- to the pick-up in prices were made by bever- creased even more (by about 1.2 million barrels ages, grains, and timber- a day). OPEC countries were responsible for Metals and minerals suffered the steepest two thirds of the production increase. price decline of any commodity group in 1993, averaging 14.6 percent lower than in 1992. In World Trade Growth Slows constant dollar terms, the price index of this The rate cf growth in the volume of world group fell to its lowest level in the whole post- merchandise exports slowed to an estimated war period. Prices for all the main industrial 2.6 percent in 1993 (see Table 2-6). The two metals (copper, tin, nickel, aluminum, lead, most important reasons for the slowdown were zinc, iron ore) fell sharply; only precious met- the recession in Europe (which curbed intra- als prices moved higher- Overall world demand Europe trade, the largest part of the trade of for industrial metals was broadly flat or lower individual European counties,' as well as im- than in the previous year, as increased demand ports from the rest of the world) and sluggish in the United States and in the developing countries was offset by weakness in Europe, 5Because of the merger in trade-accounting procedures in Japan, and the transitional economies of Cen- the European Union. it is generally thought that intra- tral and Eastern Europe and the FSUP Surplus European trade was underreported. 30 The Economic Scene: A Globol Perspecflve Table 2-6 Selected Trade-perormance Indicators, 1970-93 (average animal pereeg change) Cuntry group and indicator 19704-0 1980-90 1991 1992 1993 Low and middle-income countres- Import volume 3.5 0.8 11.3 8.6 6.5 Export volume 2.7 3.6 11H1 5.6 3.8 Terms of trade 0.7 -3.3 -5.5 -0.8 -1.7 Sub-Saharan Africac Import volume -0.5 -4.9 8.8 -1.0 4.0 Export volume -0.7 2.1 2.3 1.9 2.4 Terms of trade -0-1 -5.8 -8.7 4.2 -9.0 Asia Import volume 73 7.0 16.4 9.4 11.2 Export volume 8.5 9.6 16.2 12.5 7.4 Terms of tade -0.8 -1.7 -0.2 -0.3 1.7 Eumpe and Ceral Asia Import volume 2.4 3.5 2.4 -t.0 0.8 Export volume 4.0 3.0 13.3 -1.4 -4.0 Terms of tade -0.9 1.2 -9.8 -05 -0.3 Middce East and Nortk Afiica Import volume 5.7 -4.5 3.6 10.2 1.0 ExOrt volume -2.4 -1.6 9.3 -0.4 12 Terms of trade 4.6 -7.2 -12.9 -02 -7.2 Lats America and the Caribbean Import volume . 0.1. -2.5 21.0 19.0 7.6 Export volume 2.5 2.7 5i0 6.3 5.6 Tenrs of trade -0.3 -2.8 -3.7 -33 -3.7 Memorandum item World export volume 4.2 4.6 . 6.1 3.5 2.6 Non: Trade volumes measured in consant 1987 prices and exchang rates. Terms of trade are cakuabted as the ratio of export price to import price. a. Estimated. b. Inuding rpublics of thc fonner Soviet Union. c. Excluding South Afica SoUncR World Bank. growth in Japan. The recovery in the United Two developments in 1993-the conclusion States, which caused demand for imports to of the Uruguay Round of the GATT and of the rise, was not sufficient to offset the dampening NAFTA among Canada, Mexico, and the effect on world trade of the adverse conditions United States-underlined the importance for in Europe and Japan. Estimates by the GATT the future of two coexisting trends, one to- suggest that trade in commercial services may wards broad multilateral trading arrangements have increased by only 3 percent in nominal under the GATT and the other towards re- terms to reach S1,030 billion, as against a 12 gional integration arrangements (RlAs). percent rise in 1992. Accordingto theGATTSecretariat, the Urm- Reflecting these conditions, the growth of guay Round is expected to generate an increase merchandise export volumes from the low- in merchandise trade of 12 percent by the year income and middle-income countries deceler- 2005 (or roughly $745 billion in 1992 dollars) ated to an estimated 3.8 percent. Export over the level that would have existed by then growth in Asia slowed from 12.5 percent to a had trade grown only at its average for the pe- still robust 7.4 percent, while Latin Amercan riod 1980-91 (4.1 percent). The largest in- export growth slowed from 6.3 percent to 5.6 creases are expected in clothing (60 percent); percent. Exports from the Europe and Central textiles (34 percent); agricultural, forestry, and Asia region, with their greater focus on West- fisheries products (20 percent); and processed era European markets, fell 4 percent. food and beverages ([9 percent). Estimates World Trade Growlh Slows 31 suggest that world income could increase by at ing about 50 percent over seven years. Latin least I percent. or some $212 billion to $270 America will also gain, but proportionately billion annually (1992 dollars). Of that amount, less. Its food exporters (Argentina, Chile, and $80 billion is expected to accrue to developing Uruguay, in particular) will benefit from reduc- countries. The regional effects on exports and tions in agricultural subsidies. Latin American real incomes are likely to vary significantly, dc- economies are also likely to benefit from re- pending largely on the market-access provi- ductions in tariffs on metals and minerals, and sions of the round (see Box 2-1) they have little to lose on preferences. Sub- Gains for Asia wili be substantial. Quota- Saharan Africa's gains from the Uruguay constrained exporters of textiles and clothing Round will be limited by the low proportion of (mainly in Southeast Asia and East Asia, in- manufactures in its exports. Nevertheless, cluding China) will benefit greatly from the flster world growth resulting from the round's slow phaseout (over a ten-year period) of the pa-tial lberalization of trade would provide ad- Multi-Fibre Arrangement, with quotas increas- ditional support at the margin for prices of, and Box 21L The Uruguay Round, Market Access, and the Delopig Countries For each of the 118 participants in the Uruguay MFN tarff rates are liely to outweigh the losses Round, the increase in national income resultng from prference erosion, even for exportrs re- from the successfiil conclusion of the round will ceiving prefaernces. come from two principal sources: first, more ef- The rduction in duties that apply to develop- ficient use of domestic resources when domestic ing counies is estimated at 34 percent-less than distortions, such as ntade barriers, are reducedor the 38 percent reduction on industrial products removed; and second, increased access to mar- from all sources-and the figures for clothing and kets of trading partners. footwear (of particular interest to devcloping It is estimated that implementation of the countries) are even lower. Nevertheless, the ef- market-access provisions of the round could add fects on trade creation will be large even for such between S200 billion and $300 bilion am 1992 do- products because existing taiff rates on them are Jars) annually to world income. These figres are the highest, and the percentage decline in the probably an underestimate; they do not include tarif-inclusive price in importing countries will services, and no attempt has yet bevn rn. de to be substantiaL Moreover, where a quantitative capture the effects on productivity growth of restriction (rather than the tarifD is the binding greater openness in trade. Even at the 'under- restaint under the Multi-Fibre Arrangement. the estimated" level, ful implementation of the Urn- extent of the increase in market access may be guay Round could boost the GDP of developing larger than the cut in the tariff alone would indi- economies by almost $80 billion (in 1992 doElars) cate. a year. Devdoping country gains fm agricul- A disappointing result of the agreement is that tural liberaizon alone are estimated at between tariff escalation will continue for agricultural $20 billion and S60 billion a year, depencEng on products. It was hoped that discrimination the extent of each economy's hlberalzaton, against processed commodities would be re- Improved market access foragricultural and in- duced, thus enhancing strategies for natural dustrial products will result primaily from broad resource-based industlization. But the agreed reductions in tariffs and more control of quanti- reductions in tariffs, whether viewed in absolute tative restrictions and subsidies. In conast to the or percentage terms, do not clearly rise or fall situation for industrial products, increased mar- with the level of processing. ket access for agricultural products will involve Considerable progress has been made in the lat- limiting the use of domestic support policies. Re- est agreecmnt toward the goal of increasing the duction of export subsidies by industrial cota- proportion of tariffs that are bound (subject to ties wil boost the competitiveness of exports commitmncuts not to raise the tariff rate). This will from developing countries, signficantly reduce exporter riskL For industrial The effect of the reduction in most-favored- products, virtually all tariffs in developed and nation (MFN) tariffs on individual suppliers de- transition econonues are bound under current of- pends on whether the importing country gives the fers, and developing countries have offered to in- product MFN. preferential, or free-trade treat- crease the proportion of bound tariffs to 65 ment. ForMFIN imports there is an unambiguous percent. For agricultural products there is a sub- increase in the volume of sales in the importing stantial increase in the proportion of tariff lines countryfollowing a tariffreduction. In the case of subject to bindings, especialy in the developing imports alhrady receiving preferential or free- economies, where there is a fivefold increase trade-area treatment, the reduction in MFN tariff (from 17 to 89 percent). For the fit time in the rates can reduce margins of preference. inducing GATTs history the proportion of bound tariff buyers to switch to competing suppliers. Analy- lines wil be broadly the same foragricultural and ses suggest that the trade gains from reductions in nonagricultural products. 32 The Economic Scene: A Global Perspective volume demands for, primary commodities of unions. In a customs union, members not only significance to the region. A point of concern to reduce tariffs among themselves; they also African countries is that reductions in tariffs adopt a common foreign trade policy against will reduce the margin of preference enjoyed nonmembcrs. Common markets, in turn, ex- by the exports from African countries under pand the parameters of a customs union by al- current unilateral prefercntial arrangements lowing free movement of labor and capital such as the Lome Convention. However, the among members; in an economic union, mem- limited nature of these preferences and the bers further expand those parameters by ex- gradual phasing-in period of the new provisions plicitly pursuing harmonization of their are likely to limit adverse effects. microeconomic and macroeconomic policies Over the next fifteen years, the NAFTA will ("deep integration"). remove barriers to trade and investment flows The trend towards increased regionalization within North America; it also sets the stage for of world trade is long standing. A recent GATT reforms in domestic policies to foster trade and study shows that the amount of world trade oc- competition within an area rivaling the Euro- curring within regions as a share of world GDP pean Union in economic size. The NAFTA's rose from 7 percent in 1948 to 17 percent in main effect will be to improve the growth pros- 1990, driven mainly by the performance of pects of Mexico, which is required by the Western Europe. However, this rise did not agreement to lberalize its policies the mostand choke offtrade between regions, as the amount which should consequently experience a signif- of intraregional trade as a share of GDP has icant boost in its exports. Economic models es- remained fairly stable at between 15 percent timate that in the short term, the NAFTrA will and 16 percent. be responsible for increased exports to the The future of "benign regionalism," which United States of 11 percent and 9 percent from minimizes harm to outsiders and contrbutes to Mexico and Canada, respectively, while ex- world trade and welfare, depends critically on ports to the United States from elsewhere a commitment to maintaining and firthering could fall by small amounts. One drawback is openness and multilateral cooperation among that the NAFTA's domestic content regula- trading blocs. In this regard, the successful tions could prevent the agreement's three completion of the Uruguay Round has helped member countries from relying on some low- to alleviate concern that the "new regional- cost (non-NAFTA) sources of production ism" might substitute for multilateral trade lib- inputs-a factor that would restrict the ability eralization. In recognition of the potential of members to use their NAFTAtariff and non- threat posed by RIAs, the Uruguay Round tariff preferences. strengthens existing GATIT rules that forbid The passage of the NAFTA and the deepen- barriers against third parties from rising ing of the European Union under its single- through the creation of an RA. Further, the market program are illustrative of the renewed round will strengthen surveillance of RIAs, an interest in RlAs, a trend referred to as the effort that will undoubtedly be pursued by the 'new regionalism." new World Trade Organization (WTO), which RIAs, which entail reciprocal negotiation of will succeed the GATT in 1995. The WTO, de- trade preferences among participants, can take signed by the Uruguay Round participants to several forms. These extend from preferential enforce the GATr's free trade rules, will have trading arrangements and free trade arrange- the power to levy trade penalties against coun- ments (under which participants levy lower, or tries by a semijudicial disputes procedure that eliminate, respectively, tariffs on imports from will no longer allow countries to ignore findings each other while maintaining independent against them. trade policies toward third parties) to customs 33 Section Three Major World Bank Programs: Fiscal Year 1994 World Development Report 1990 outlined a area. Aid donors are increasingly channeling strategy for reducing poverty based on experi- their assistance to this area and are asking the ences from developing countries across the Bank to coordinate the aid flows. world. How this strategy should be imple- The Human Resources Development and mented in the World Bank's operations was Operations (HRO) vice presidency is the focal subsequently spelled out in three documents: point of the Bank's human resources and pov- the policy paper. Assistance Strategies to Re- erty operations. Operational relevance and cli- duce Poverty. the Poverty Reduction Hand- ent orientation are the main criteria used for book, and a World Bank Operational Directive selectiing tasks in the human resources devel- on poverty reduction. The yardstick to evalu- opment sectors. ate the Bank's progress in implementing the During the past year. demand was also heavy poverty-reduction strategy is the extent to for HRO's analytical services The executive which the Bank is implementing the strategies directors of the Bank, as well as the six oper- articulated in the three documents. ational regions, requested a number of analyt- During fiscal 1994, the Bank continued to ical papers on several critical issues: higher make progress in implementing its poverty- education (see Box 3-1), gender policy, and reduction strategy both through its lending op- population. The dissemination of information erations and a strengthened policy dialogue. through the vice presidency's Working Papers Analysis is also being strengthened to ensure series and Dissemination Notes. as well as that the Bank's country-specific assistance through population and health/nutrition news- strategies develop the most relevant mix of letters and the electronic network, has proven lending for each country, as well as to improve popular with task managers and external audi- the targeting and design of its operations. The ences alike. Bank, in both the central and regional vice Tools for Reducing Poverty. By a variety of presidencies, now systematically monitors measurements-through its lending program. how it supports government efforts to reduce development of country-assistance strategies poverty. At the planning stage, each adjust- and the policy dialogue, and analysis of pov- ment operation is classified as to whether or erty issues-the Bank continued to advance not it is poverty focused, and each investment during the year in its work to reduce poverty- project is classified as to whether or not it is in The lending program for hluman resources the program of targeted interventions (PTI). development (comprising lending to educa- Each region periodically outlines what tion; population. health. and nutrition; and the progress is being made in implementing the social sector) continued to be robust during Bank's poverty-reduction strategy and what fiscal 1994. attracting $3.104 million in com- special initiatives are being undertaken to mitments (15 percent of total Bank commit- strengthen these efforts. To strengthen both ments). Eighteen percent of all new IDA the technical and analytical tools being used in commitments-some $1,198 million-were di- the Bank's operations, the central vice presi- rected toward human resources development. dencies are supporting the regions by refining Lending for the agriculture and water supply methodologies for analyzing policy issues, dis- and sanitation sectors, which play an important seminating best-practice analysis and project role in supporting the Bank's poverty- design, and providing training. reduction efforts, increased by more than $400 omillion. Hunman Resources Developmen Lending for projects in the PTI was 25 per- Developing countries are turning to the Bank cent of total investment lending (see Table 3-1). for intellectual leadership and fnancial assis- IDA commitments for the PTI. as a share of tance for investments in the human resources IDA investment lending. increased to 43 per- 34 Mapor World Bank Programs FiWal Yeor 1994 Box 3-1. Higher Eduamom Lsfom of Experiee Higher education is in caisis in all parts of the An expanded menu of teriay education would world, bothdevelopedanddeveloping.astudyby find universitics being complemented by other the World Bank finds. And, as might be expected, types of institutions such as polytechnics, short- the crisis is most acute in the developing world, cycle professional technical institutes. comnun- where fiscal constraints are tighter and pressures nity colleges. and "distance" and 'open- for expansion of cnrollment are greater. learning" programs. Typically. these higher- The study-the third in a series on education education supplements are often less costly to set subsectors'-analyzes recent lessons of up and operateand are therefore attractive to pri- developing-ountry experience in higher educa- vate entepreneurs. tion reform at both the national and institutional To relieve the financial burden irnposed on level to show how countries contemplatig re- public institutions by increasing enrollments, the form, orjust starting on its path, might realize the World Bank study advocates sweeping reforms in goals of greater efficiency, quality, and equity in the ways slch institutions are funded. For exam- higher education. The study also charts the prob- ple, students should be required to pay a greater able course of World Bank lending to the subsec- share of their education costs, public subsidies tor in the years to come. for noninstructional expenses-housing and Based on a review of experience across coun- meals, for instance-should be sharply reduced tries, the study suggests-without trying to pro- if not eliminated altogether, tax codes should be vide a blueprint for each country-that higher modified to encourage philanthropy by alumni education reform might best be direted at (a) ex- and private industry, and public higher-education panding the menu of higher education choitc in institutions should be encouraged to pursue terms of types of insiutions and modes of deliv- income-generating activities. At the very least, cry (which, concomitantly, would stimulte the govermnents should stop penalizing entrepre- developinent of prvate institutions); (b) provid- neurial activities as they do, for example, when ing incentives for public institutions to diversify they reduce budget allocations by the sae sources of funding-, (c) linking public funding amounts as public institutions make on 'non- ciosely to performance; (d) redefining the rolc of core" activities. government in highereducation; and (e) introduc- The study reports that, as a result of the crisis ing policies explicitly designed to increase the in publicly funded higher education, govern- quality and equity of higher education. meat's role in the subsector is being redefined cent' Ptojects are included in the Pm if they (including the Bank), throughout Asia, Africa, include a specific mechanism for reaching the and Latin America, has revealed beneficiary poor or if the participation of the poor signifi- cantly exceeds the proportion of the population as a whole.t 'Mm Bknlakcss vey seriously its commitment to incrse Of the twenty-three adjustment operations 'the shares of poverty-trgeted investments and social- approved during the year, seventeen, or three stor lcnding during the three-year period encompassed of every four, were poverty focused.3 by the tenth replenishment or IDA resourcs (fiscal 1994- It is now widely acknowledged that partici- 9. Care shoud be taken. howevcr. not to use the P as pation by beneficiaries in the design and imple- the sole measure or the BankIs poverty-reduction efforts. In somc cases, dhe greates contrbution to povery reduc- mentation of projects can often be an important tion in a given county could corne from the implemenra- determinant of project effectiveness. As a re- dion of a well-designed adjustment progam. In addition. sult, the Bank's use of participatory method- may PT[ proJects ar ecxpmimertal and. as a result, loan ologies-including bencfLciary assessments amouras can be cxpected to be small. For these reasons. o.oie-i n b r atherse may bc naisma fluctuations in the size oftbe Pt] frwm participatory rural assessments, and participa- yr to ye, although the trend line sbould be an increas- tory workshops to fine-tune project desiis gug one. on the rise. A preliminary review of fiscal 1994 A description ofeach projeci thei I that was appre 'ed operations shows that ninety-six out of the during fiscal 1994 can ie found in the project summaries in Section Five of this Annual Report. The PT! procts are total of 228 projects included participation by maked by an asterisk. primary stakeholders (individual beneficiaries, 3 A description of each povety-focused adjustment opera- people affected in one way or another by the tion that was approved during fiscal 1994 cn be found in project, community organizations, user the proect summaries in Section Five of this Arnual Re- project, cmuiyoport_ These operations are marked by a pound sign (#)- groups, and others such as producer groups A description of each project approved during fiscal 1994 and cooperatives)Y with participation by prinary stakeholders can be found in The salutary effect of beneficiary parti :ipa- the project summaies in Secion Five of this report Ihe tion is now becomiing clearer. A study otl- 121 fpi e are marked with a t. .nsobon l1 Dpa Narayan. 1994. The Contribution Of Peoples Par- rural water supply and sanitation proje ts.% fic*prion: 121 Rural Water Supply Ptojecs. The World supported by eighteen development agencies Bank: Washington. D.C. Human Resources Development 35 Rather than aiming at direct control of the entire Lending in support of higher-education reform, subsector, a goveument's main responsibity is however, can be justified, as Bank financing becoming that of providing an enabling policy helps countries free up some of the incremental environment-for private as well as public public resources needed to improve quality and institutions-and of using the leverage of public access at the primary and secondary levels. Prop- funding to stimulate institutions of higher learning erly designed projects also allow the subsector to to meet national training and research needs more operate more efficiently and at lower public cost. efficiently. Highereducation lending will be directed to coun- Encouraging an expanded menu of opportuni- tries prepared to adopt an education policy fiame- ties for higher education, providing incentives for work that stresses a differentiated institutional diversifying fumding sources, and relaxing gov- structure and a diversified resource base, with erumental control are necessary elements for im- greater emphasis on private provision of services proving higher education. By themselves, and private funding. In these countries, Bank however, tbey are insufficienL The Bank study lending is supporting, and wil continue to sup- goes on to say that the final element of the reform port, sector-policy reforms, institutional develop- proce must be implementation of policies that ment, and improvements in quality. increase the quality of higher education and im- prove the access of traditionally disadvantaged groups. Greater equity of participation is impor- tant not only for economic efficiency but for so - cialjustice as welt a he fm study. on prmary education was iscussed The Bank's latest examination of an education by tic executive board in fiscal 1990. while polices for subsector points to the conclusion that higher ed- vocatioral and technical education and taing were ucation imestments have lowersocial rates of re- the subject of a board discussion in fica 1991. turn than do investments in primary and 2Cost-sharing cannot be ipipnenauted equitably, how- seondary-oducadon and dw. investmentsi; ba- ever, without scholarshap progras ta guarane ne- secodaryeductionandthatinvetmens inha- essay iaci supporto aocdn,ically quainedt poor sic education have a more dirc tiact on pov- students unable to absorb the direct and indirect (fore- erty reductioa. As a result, the Bank wit continue gwcang) costs of igher educabion and wiout a to give priority to lending for primary and lower fimnining studet4-lana progam to assist studcnts secondary educaton- who need to borrow for their eduaton. participation as the single most important Bank's experience in participatory approaches element in determining the overall quality of and to identify ways to support participation in implementation. Similarly, the Operation Eval- borrower countries. The result-a report to the uation Department's Annual Report of Evalu- Bank's management, developed by a learning ation Results 1992 listed beneficiary group of some fifty Bank staff involved in par- participation and borrower ownership as two ticipatory work-has been widely reviewed by important features of the twenty-four opera- Bank staff and outside experts in participation. tions classified as outstanding. The report puts forward a number of recoin- Fiscal 1994 marked the culmination of a mendations, including ensuring that all projects three-year Bankwide learning process on par- under preparation include (a) a provision for ticipation. which has sought to review the systematically identifying and seeking the par- Table 3-1. Program of Tareted Interventions, 1992-94 (mllions of US dollars; fiscal years) 1992 1993 1994 Towu World Bank P71 lending 3,837 4,674 4,441 As share of investment lending (96) 24 27 25 As share of all Bank lending (%) 18 20 21 Total number of Pf pmjects 57 72 63 IDA Pll lending 1.88 2.137 1,853 As share of IDA investment lending (96 43 41 43 As share of all IDA lending (%) 28 32 28 Number of IDA PIU proects- 35 44 35 Nonx: Inestment lending is defined as afl knding except for adjisusent. debt and debt-service reduction operations. and emergency-reconsnzctzn operabons Dam for FY92 and FY93 have been revised to reflect tis definition. 36 Major Wcald Bank Program: Fiscl Year 1994 ticipation of relevant stakeholders and (b) shar- fiscal 1994.' Eleven assessments were com- ing responsibility for economic and sector pleted, bringing the number of completed as- work with a wide range of stakeholders. The sessments to thirty-nine. By the end of fiscal report was a focus of discussions at a May 1994 1995, ninety-four assessments for eighty-three workshop on participatory development. countries are scheduled to be completed. hosted by the Bank, which included sixty non- Strides were also made during the year toward governmental organization (NGO) represen- overcoming the lack of good household data on tatives, staff from donor agencies, and poverty, although this remains a problem in academics The workshop discussions helped many countries. The most progress in data col- prioritize the Bank's next steps in this area as lection and analysis has been made in the Af- it begins to mainstream participatory ap- rica region, where acquisition of recent proaches in its work. household data has accelerated. As a further means of encouraging a main- In a report to the Bank's executive directors streaming of participatory approaches, a that was later made public,7 several lessons $300,000 Participation Fund was established from the Bank's past poverty-reduction work, during the year to support a wide range of par- as well as challenges for the future. were high- ticipatory initiatives in the Banlc's lending and lighted. nonlending operations. The fund proved so . The challenge for future country- popular among task managers that a $200,000 assistance strategies is to ensure that they ad- replenishment was approved to meet the heavy dress the main poverty problems in each demand. country, that they complement efforts by gov- Activities financed by the Participation Fund ernment and donors to reduce poverty, and included several workshops during project that the appropriate mix of broad-based and preparation involving beneficiaries, NGOs, targeted lending instruments evolves for each and government staff in discussions about country. project design; workshops were also funded * Clearly the Bank is challenged to complete that involved local communities in the evalua- poverty assessments for all borrowing member tion of participatory components of ongoing countries, to continue to improve their quality, projects. Building on this precedent, a $2 mil- to enhance the quality of analysis through lion Fund for Innovative Approaches in Hu- greater coordination among donors, and to en- man and Social Development was set up sure that assessment findings are fully inte- toward the end of the fiscal year. The fund wil grated into country-wsistance strategies. support efforts to promote participatory ap- * Development of poverty-monitoring sys- proaches and wil finance a limited number of tems and expansion of countries' capacity to social assessments of the potential impacts of implement them is a priority. To date, only a proposed projects. few poverty assessments have evaluated a Country-assistance strategies and the policy country's statistical svstem for monitoring dialogue increasingly address poverty in a wide poverty: even less attention has been given to context. In particular. poverty issues are being developing action planis for implementing addressed comprehensively, both within the poverty-monitoring systems over time. context of human resources development and Activities on Women in Development (WID). more fully within the overall country- According to a report written for the Septem- assistance strategy (including macroeconomic ber 1993 meeting of the Development Commit- and sector policies) in the more than three tee, the Bank has made progress in dozen countries for which poverty assessments implementing its operational strategy on WID. or other poverty analyses have been com- That strategy aims to reduce gender disparities pleted. In the policy dialogue on country- and enhance womenWs participation in the eco- assistance strategies, poverty reduction is high on the agenda. In particular. Bank staff are dis- - - cussing poverty reduction more frequently heductio esom arc auci t Banks thert- . . . . z~~~~~~~~~rduction efforts. A poverty assessment provides the bassis than before with finance and planning minis- fora collabomtive approach to poverty redaction by coun- tries in the context of macroeconomic and sec- try officials and the Bank. It also helps to establsh the toral policies. In several countries (Belarus, agenda of issues for th policy dialogue between the gov- Ecuador, and Sierra Leone, for example). spe- emment and the Bank and between the government and agencis of the intemational donor connunity. The pro- cial units have been created within those miin- ccss of completing assessments for aD IDA borrowers has istries to integrate the goal of poverty reduction taken longer than orignally planned. This is mainly be- more explicitly into economic planning. cause of the timc-consuming process of overcoming data In the area of analysis ofpoverty issues, sig- constraints. developingappropriate analytical approaches. and increasing government involvement in the process. nificant progress was made in preparing pov- 7 Word Bank. 1994. Powvty Reducion and the WoriddwBa erty assessments and other analytical work in Progress in FLirat 1993. Washington. D.C. Human Resources Development 37 nomic development or their countries by inte- The policy paper outlined the rationale and grating gender consideration in country- strategy for integrating gender in Bank opera- assistance programs. Of all projects approved tions. Addressing gender issues is essential for by the Bank in fiscal 1993, about one in three the realization of the Bank's goal of reducing included gender-targeted interventions. poverty. In addition, reducing gender dispari- The integration of WID issues into the ties and enhancing women's participation in Bank's economic and sector work continues. economic development are entirely compatible Almost half of the Bank's economic and sector with the promotion of growth as well as with reports contain WID-related analytical work. environmentally sustainable development. The Gender issues are also increasingly addressed Bank is committed, therefore, to integrating in poverty assessments, particularly in coun- gender issues into the mainstream of its oper- tries where the number of female-headed ational, as well as its analytical, activities. households is disproportionately high and A new operational policy directive, issued in where there are significant disparities in social April 1994, states that it is the Bank's intention indicators between males and females. to reduce gender disparities and enhance wo- According to the 1993 progress report, vari- men's participation in economic development ous lessons have already been learned from the by integrating gender issues into country- preparation by the Bank of best-practice pa- assistance strategies. These issues will be iden- pers on education, agriculture. safe mother- tified through the use of various instruments hood, and enterprise development and (poverty assessments, country WID assess- financial services. In agriculture, for example, ments, public expenditure reviews, and other it has been found that targeting special services economic and sector work). Objectives and in- to women does not guarantee success. Rather, terventions for carrying out gender strategies it is more effective to ensure that women's pro- are then to be reflected in the Bank's lending grams become part of the mainstream exten- program and the design of lending operations. sion services and to encourage women farmers Implementation is to be monitored as part of to participate in the services' design. Projects the country-implementation review. also need to be tailored to specific country or The Bank is only one contributor on the in- regional circumstances so that women's roles temational scene that seeks to advance wom- and needs can be properly taken into account. en's status and participation in economic Lessons learned by the Bank, by other do- development. Other donors, as well as interna- nors, and NGOs suggest some promising ap- tional, national, and local institutions are also proaches to overcoming the barriers to playing important roles in closing the gender improving the status and productivity of gap. The Bank will continue to learn from, and women. That combined experience points un- collaborate with. other agencies and capitalize ambiguously to five operational strategies that on a wide range of expertise that exists in ad- are key to improving the status and productiv- vancing gender issues on the development ity ofwomen: expanding the enrollment of girs agenda. All these efforts, however, will be in school, improving the health of women, in- fruitful only with governments' leadership. creasing their participation in the formal labor commitment, and collaboration. force, expanding their options in agriculture, Population, Health, and Nutrition. Rapid and providing financial services to them. population growth in the world's poorest coun- Until quite recently, WiD programs, includ- tries is a matter of considerable concern be- ing those ofthe Bank, tended to treat women as cause of its posstble negative effects on efforts a special target group of beneficiaries in to reduce poverty, generate economic growth, projects and progams. According to a recent and preserve the environment. Bank policy paper,' development organiza- Althoughi the global picture is one of contin- tions have begun to recognize, however, that ued growth, rates of growth have begun to slow the best way to ensure that women are not left in many developing countries. The slowing of at the margin of the development process is to growth reflects a pervasive shift in reproduc- analyze the relative roles and responsibilities of tive attitudes and behaviors in those countries. both men and women and to apply the insights The pace of change varies by region, but fer- gained from this analysis to the design of tility declines are widespread. projects and programs. This new approach, Over the past three decades, the percentage which focuses on gender relations in the family of married women in developing countries us- and in the community rather than on women in ing some method of contraception has in- isolation, constitutes the "gender and develop- ment" approach. This is the focus that the W World Bank. 1994 Enhanwing Women's Participazion in Bank is now promoting to enhance women's Economic Development. A World Dank Policy Paper. participation in development Washington. D.C. 38 Major Wold Bank Programs Fiscal Year 1994 creased from 1O percent to 51 percent-from 40 totaled $199 million for family-planning and million users in 1960 to some 365 million in population-policy components in fourteen 1990. Because of the large increase in the num- health and social development projects. New ber of women of reproductive age, however, commitments vary considerably from year to the total number of women not using contra- year, but the trend has been steadily upward. ception has declined little, leaving an estimated The increasing complexity of population 350 million still to be served. projects offers particular challenges when it During the 1990s, an additional 170 mil!ion comes time for project supervision. Some of individuals will move into their reproductive the Bank's more successful population and ages in developing countries; another 180 mil- health projects-in Bangladesh and Kenya, for lion are projected for the following decade. Just example-have included provision for resident to maintain the current level of coverage. ser- management staff to strengthen supervision ca- vices will have to be expanded to accommo- pacity. The experience of other donors also date 80 million to 90 million more contraceptive suggests a strong relationship between the in- users during each of these two decades. That tensity of in-countrv management effort and still leaves the challenge of providing services project effectiveness. The Bank has been mak- for at least 100 million married couples and at ing a special effort to improve supervision and least 20 million unmarnied irndividuals, many of strengthen its skill mix in needed technical ar- whom are at risk of contracting sexually trans- eas and to assure that it is responsive to bor- mitted diseases, as well, because needed con- rower needs. traceptive services are not available or are of Health sector reform is a high priority. Since poor quality. the publication in July 1993 of World Develop- As the number of potential clients increases, ment Report 1993, which was devoted to the the definition of what constitutes a population issues of health reform, assistance has been re- program is expanding. It is now widely ac- quested by more than three dozen countries for cepted that programs must meet a wide range assessing the burden of disease. Guidelines for of the reproductive health needs of women health-sector reform are now being prepared; and men.9 In addition, they are increasingly they will be published in fiscal 1995 as a com- addressing other health concerns related to panion volume to World Development Report sexual activity and rer luction-the AIDS 1993. Also under study are managed-care ar- epidemic and other sexually transmitted dis- rangements in both developing and industrial- eases, for example. Similarly, the scope of pro- ized countries, the efficacy of differing systems grams is also expanding to include such groups of health care, and pharmaceutical policies in a as unmaried adolescents and males, particu- number of countries. The goal of the last- larly those who engage in high-risk sexual be- named study is to assist borrowing member havior, whose needs have not been served by countries in formulating and enforcing policies traditional modes of service provision.'0 that improve the access to, and quality of, es- The Bank's role in population has been sential drugs. shaped by its comparative advantage in a num- The upward momentum that has character- ber ofareas: It brings strength in sector and eco- ized recent lending trends for nutrition within nomic analysis, which together provide a basis Bank projects continues, assisted, in part. by for policy dialogue between the Bank and bor- rowing countries. This strength is particularly relevant in the current population-policy envi- ' The Development Commintee, ror example, in its April romnent, in which fertility reduction is increas- 1994 communique following its spring meeting, noted tht ingly being pursued as part of a broad range of an -ntcnmcd poulation polatn cognize Lhe links social policies, particularly those that improve ton. health. invscnt in hunman resources, and envi- the status of women, such as education. ronmental degradation. "Family planning." the The Bank has been ar. active player in the communiqut went on to say, "is only one of the available population field for the past twenty-five years instruments and needs to be seen in the broadercontext or population ~~~~~~~~~changing social paterns and the incresed awareness or lending more than $1.7 billion to support pop- womnps role.c u.ation activities through more than 100 "'Thechangingnatureofpopulationprogramsandthechal- projects. The value of the current portfolio lenging popubtion issues of this decade and beyond will stands at slightly more than $1 billion, repre- be the subject or the 1994 Internationl Conferaene on Population and Development-the third in a series or senting seventy-three projects under Bank su- United Nations conferences that started in Bucharest in pervision. Many Bank projects include family 1974 and continued in Mexico City in 1984. These meet- planning within larger health and nutrition ings produced and refined the World Population Plan of projects, leading to mutually reinforcing effects Ation, whih has provided donors and developing coun- tries with a framework. for population policies and -ction for both better health and increased demand for pmgars over the past two decades. The 1994 conference family planning. Commitments in fiscal 1994 vwll be held in September in Cairo. Human Resources Dewelopment 39 the recommendations for cost-effective inter- countries that are changing from centrally ventions in World Development Report 1993. planned cconomies to market-responsive ones. An additional focus within the Bank was gen- One such project is in Hungary, which has in- erated by the convening in late November of troduced reform to its higher education system the Bank's first major conference on hunger, by promoting the concept that participating in- "Overcoming Global Hunger-A Conference stitutions must compete for investment funds on Actions to Reduce Hunger Worldwide." by submitting funding proposals to an impartial Children three years old and younger and national agency. This agency assesses the sub- pregnant and lactating women remain the pri- mitted proposals on their educational and eco- mary target of nutrition operations in Bank nomic merits through well-understood and projects. Several recent projccts, however, transparent criteria and procedures that em- such as fiscal 1994's Maternal and Child Health phasize economy and efficiency in the use of Project in Argentina, include integrated early public resources. A recent midterm review of childhood-development components that ad- the results has been encouraging; the new pro- dress the full range of health, nutritional, and cedures are being expanded to replace the en- educational needs of young children in their tire higher education funding mechanism, and most critical years of development. neighboring countries have shown interest in Overall lending for population, health, and replicating the system. nutrition has increased substantially, from an In July 1992, Lewis Preston, in a letter to annual average of $103 million in new commit- 1,400 parliamentarians from twenty-six coun- ments during the four-year period fiscal tries about future lending by the Bank, wrote 1981-84 to an annual average of $1 ,307 million that the Bank would increase it; support for during the period fiscal 1991-94." education projects in the period fiqcal 1993-95 Bank investments in education (which over levels of the preceding three-year period. amounted to $2,068 million in fiscal 1994) are Commitments in fiscal 1993 and 1994 totaled increasingly targeted toward getting girls into $4,074 million, $336 million higher than in the school and eliminating existing gender dispar- period fiscal 1990-91. Mr. Preston also said ities in participation, achievement, and attain- that support by the Bank for basic education ment; the objective is to empower women as during riscal 1993-95 would rise above the 42 producers, reduce their dependence on hus- percent mark achieved in fiscal 1992. Such sup- bands and sons, and lower the fertility rate. port amounted to 45.7 percent and 30.2 percent The HRO vice presidency is actively in- of total lending for education in fiscal 1993 and volved in improving the design and implemen- 1994, respectively. cation of the Bank's education projects. During External Relations. The Bank is a partner the past year, for example, senior staff were with numerous United Nations organizations actively involved in the implementation of a and a variety of other international and bilat- complex and comprehensive primary educa- eral agencies, as well as with major NGOs. The tion project in Uttar Pradesh-one of the most HRO vice presidency pays close attention to educationally deprived states of India. The nurturing these relationships, to listening, to project, supported in fiscal 1993 by a $165 mil- sharing understanding of the problems being lion IDA credit, focuses on the education of faced, and to building collaborative relation- girls and disadvantaged ethnic minorities. The ships. project design and its implernentation reflect a During the past year, the Bank shared the deep government commitment to the concept podium in United Nations' fora to address de- of education for all, both at the central govern- velopment issues oi global reach. The Bank's ment and at the gassroots level. This commit- follow-up to environmental activities after the ment has manifested itself in the ways that staff and other resources have been assigned to the project, in the interest of tep-level civil ser- "In July 199z Lewis Preston president of the World Bank. vants ad grassoots-lvcl NGO in itsimple- said that the Bank planned to substanially increase lend- vants and grassroots-level NGOs in its imple- ing for population, hnelth, and nutrilionin both dollar- mentation, and in the exceptionally fast pace volume terms and as a prenta of total commitments- with which project baseline studies and infra- during the period fiscal 1993-95 as compared with the stmcture are being carried out, facilitating sub- three previous years. iTring fiscal 1990-92 lendimg to the sequent evaluation and measurements of sector averaged S.l15a- Aillion annually and repreented 5 percent oftota Bank lending. During fiscal 1993-94. lend- project achievements. The results of this ing for population. health, and nutrition averaged $1,349 project are now being replicated in a much million and amounted to 6 percent of total commitments. Iarger, countrywide project. Mr. Preston also prqiected that lending for primary health At the other u nd of the education spectrum, would be more than S percent of total lending over the Atthe otaffhver bend ivoft edution spectum desigsameperiod. In riscal 1993 and 1994. commitments in sup HRO staffhave been involved in the design and port of prihary health amounted to 6 prerent and 4 -r-s implementation of higher education projects in ccitt of the total, repectively. 40 Major World Bank Programs Fiscal Year 1994 United Nations Conference on Environment In the realm of lending operations. NCOs in- and Development was discussed in the UN's creasingly are designing, preparing, imple- inter-Agency Committee on Sustainable De- menting, and evaluating subprojects financed velopment and in the Commission on Sustain- through Bank-ansisted projects, while the ex- able Development. The Bank also addressed pansion of the policy dialogue has led to in- environmental issues at such UN gatherings as creased beneftciary ownership of Bank-assisted the Small Island Economies Conference (held projects. Social-fund projects worldwide and in Barbados) and the Disaster Reduction Con- food-security and nutrition projects in Africa ference (held in Japan). have benefited from NGO involvement, while The Bank actively participated in all phases Pakistan's Social Action Program is an example of the preparations for the Third Population of the Bank's increasing commitment in support and Development Conference, scheduled for of participatory development. In the Pakistan September 1994 in Cairo. The Bank provided program, the Bank created a $10 million Partic- travel grants to developing country NGOs to ipatory Development Program Fund to support ensure their full participation in the conference various implementing organizations in their ef- and its preparation. It also participated in the forts to involve communities in the delivery of preparations (including provision of back- basic social services, such as primary education ground papers on social and human resources and health care and rural water supply. development and grant funds to ensure NGO One of the Bank's main goals in collaborat- participation) for the Social Summit that will be ing with NGOs has been to increase the insti- held in Copenhagen in 1995. The Bank also co- tutional capacity of project-implementing sponsored, with the summit's secretariat and organizations. To this end, the Bank has pro- the government of the Netherlands, a meeting vided, or has made arrangements with other held in June 1994 in Zambia of a preparatory organizations (very often NGOs) to provide, expert group on poverty. The Bank's contnrbu- capacity-building assistance to various NGOs tion to the Conference on Women and and communities. One such example is the Development-to be held in Beijing in 1995- capacity-building exercise for indigenous included a special study on the economic po- NGOs that has been launched in several Latin tential of women, while the Second (Economic American countries with grants from the and Financial) and Third (Social, Humanitar- Bank's Institutional Development Fund. This ian, and Cultural) Committees of the UN Gen- exercise stemmed directly from requests from eral Assembly provided a forum for presenting indigenous NGO leaders who attended the updates on major Bank activities. Latin American Second Interagency Work- The Bank continues to coordinate project- shop on Indigenous Development, held in focused work with UN agencies in areas of mu- Washington, D.C. in September 1993. tual involvement, including food security with The Bank is also helping governments ana- the Food and Agriculture Organization of the lyze their relationship with NGOs with a view UN; health and education with the United Na- to constructing a more enabling environment tions Children's Fund (UNICEF); employment for NGO activities. For example, it convened a with the International Labour Office; AIDS workshop in Uganda that brought together and other health interventions with the World NGOs, government officials, and donors todis- Health Organization; environmental issues cuss specially prepared reports on the coun- with the United Nations Environment Pro- try's NGOs and the policy environment in gramme (UNEP); basic education with the which they operate and to formulate a national United Nations Educational, Scientific, and acticn plan to promote the role of NGOs in Cultural Organization, UNICEF, and tule poverty reduction. United Nations Development Programme In the twice-yearly meetings of the Bank- (UNDP); and water and sanitation and techni- NGO Committee, topics such as popular par- cal assistance with the UNDP. The Bank re- ticipation and the social effects of structural mains a cosponsor (with the UNDP) of the adjustment programs were discussed. The Energy Sector Management Assistance Pro- Bank also consulted on an ad hoc basis with graimme (ESMAP), designed to assist countries NGOs on issues of particular concern. In May in developing environmentally sound energy 1994, for example, discussions with NGO rep- strategies and investments. resentatives were held on the implementation Cooperation with Nongovernmental Organiza- experience of the Bank's forest policy in prep- tions. Cooperation with NGOs continued to ex- aration for a review in fiscal 1995 of the policy pand in terms of both lending opertions (see by the Bank's executive directors. A separate Tables 3-2 and 3-3) and the policy dialogue. consultation with NGOs in May 1994 helped Some 50 percent of all Bank-approved projects the Bank evolve strengthened indicators of de- involved NGOs. velopment impact. Consultations were also Human Resources Devapoment 41 Table 3-2. Patterns in World Bank-NGO Operational Collaboration, Fiscal Years 1974-94 Tota 1974-91 1992 1993 1994 -No.- No. % No. 9 No. 96 By region (number of projects) Africa 204 n.a. 32 42* 31 41* 38 63* East Asia and Pacific 45 n.a. 8 17* 12 27* 22 51* South Asia 59 na. 9 39* 11 42* 15 79* Europe and Cental Asia 6 u.a. 4 29* 2 7* 10 24* Latin America and the Caribbean 59 nu 1?. 277 14 28* 24 50* Middle East and North Africa is na. 3 18* 3 16* 5 31* Total 391 100 68 31* 73 30* 114 50* By sector (number of projects) Adjustment related (incisocial funds) 27 7 8 12 5 7 12 11 Agriculture/rural development 150 38 22 32 14 19 36 32 Education 41 10 6 9 6 8 10 9 Environment 12 3 13 19 13 18 5 4 Industrylener 35 9 6 9 8 11 13 11 Infrastructueurban development 63 16 4 6 8 11 24 21 Populaton, health, and nutrition 57 15 7 -10 16 22 14 12 Rehabilitation/reconstruction 6 2 2 3 3 4 - Total 391 100 68 100 73 100 114 100 Refens to percentag of NGO-involved projects in all Wodd Bank-alproved projects; na. = not available. Tabk 3-3. Type and Function of NGOs in NGO-assocated Prjects, Fscal Years 1991-94 1991 1992 1993 1994 No. % No. % No. % No. % Total projects nvolving NGOs 89 68 73 114 By type of NGO (number of NGOs) G;rassroots 49 55 37 54 21 29 46 40 Indigenous 66 74 52 76 58 79 80 70 International 23 26 33 49 16 22 11 10 Unclassified - - - - 1 19 17 Byfwnction (number offwrctions) Advice 40 45 37 54 35 48 14 12 Design 39 44 31 46 17 23 60 53 Implementation 85 96 59 87 57 78 99 87 Monitoringlevaluation 15 17 26 38 33 45 38 33 Cofinancing 23 26 10 15 1 1 11 10 NOTE: Te numbes in this table are estimates oftheways NGOs maybe involved in each project. Regardless of the acal numberofNGOs involved ineach project, projectsare counted onlyonceforeach typelfimctionofNGOs. Forthesereasons, numbeas under "By type of NGO" and -By fibction" exceed the total number of projects involving NGOs. held with NGOs in Paris and Washington on year on issues such as the disclosure of infor- the draft of World Development Report 1994: mation, creation of an inspection panel, and Infrastructure for Development. foilow-up to the report of the Bank's Task In addition to formal consultations, an in- Force on Portfolio Management. Another se- creasing number of meetings between senior ries of meetings focused on environmental sus- Bank officials and NGO representatives tainability, resettlement issues. specific project around the world have been held. A series of concerns, and the environmental effects of meetings took place with NGOs during the past macroeconomic policies. 42 MaJor World Bank Programs: Fscal Year 1994 The changing nature of the Bank-NGO reia- In canrying out its mandate, ESD engages in tionship was clearly exhibited at the Confer- six types of activities: ence on Actions to Reduce Hunger Worldwide * improving the Bank's understanding of the that was convened by the Bank in November meaning of, and requirements for, achieving 1993. In addition to participating in presenta- environmentally sustainable and equitable de- tions and discussions, NGO representatives as- velopment; sisted in the conference's preparatory and * formulating sound environmental, agricul- follow-up work. Discussions at the country tural, and infrastructural policies, projects, and level on hunger issues are currently being programs-through its own studies and by planned by the Bank and NGOs in various drawing on the best work wherever it is being countries. done-that promote sustainability; NGOs are also playing a role in the Global * providing guidance and technical support Environrment Facility (GEF), especially in the to the Bank's six regional offices in devising areas of project design, implementation, and operationc consistent with the object of sus- monitoring. The twice-yearly meetings of GEF tainability;'2 "participants" (members) are routinely pre- * helping to address global issues related to ceded by GEF-NGO consultations. the environment, agriculture, and infrastruc- The instrument for the Establishment of the ture and urban development-in oartnership Restructured Global Environment Facility, with bilateral agencies, other multilateral insti- adopted in March 1994 at the GEF Participants tutions, and NGOs; Meeting in Geneva, included several provi- * exchanging and disseminating the findings sions that relate to NGOs' concerns: In the re- of policy and "best practices" work with its structured facility, NGOs will have important external partners and within the Bank; and roles to play in proposing, preparing, and im- * developing the Bank's technical capabili- plementing projects, and local communities ties through selective recruitment and training will be consulted throughout the project cycle. of staff to become more alert to environmnental The facility's three implementing agencies issues and more proficient in elaborating and are moving to modify their procedures as managing environmentally sound programs. needed to assure consultation with affected Polcy and Best-practice Work. The ESD communities, increased participation by NGOs vice presidency is responsible for advancing in GEF projects, public access to GEF project appropriate sustainable development policies information, and regular monitoring and eval- in the Bank and monitoring progress in the field uation of project implementation and results. of environment, agriculture, and infrastruc- ture. Recent policy papers have addressed ur- Environmentally Sustainable Development ban development (fiscal 1991), forestry (fiscal Achieving environmentally sustainable de- 1992), housing (fiscal 1993), and water- velopment is a major challenge of the 1990s. resource management (fiscal 1993) issues. The June 1992 UNCED succeeded in raising During the past fiscal year, the vice presi- the consciousness of the world to the urgency dency promoted the acceptance of the Bank's of this task. The World Bank, as the largest water-resource management policies, which multilateral source of development finance for call for treating water as an economic good, developing countries, has a special responsibil- involving stakeholders in its management, and ity to ensure that the programs and projects it fostering institutional environments that en- supports are consistent with the objective of courage efficient, effective, and equitable wa- sustainable devetopmenL The mandate of the ter use. The importance of a comprehensive Environmentally Sustainable Development framework that takes into account cross- (ESD) vice presidency is to develop an effec- sectoral considerations was also stressed. tive Bank response to this challenge. These concerns were pursued in countries At all times, people and the capacities of eco- worldwide. In the Africa region, for example, systems to support life are the center of ESD's staff have been assisting the government of focus. The existence of acute poverty in the Malawi to develop a water-resources manage- world and the degradation and contamination ment policy to guide the sustainable use of wa- of ecosystems are related critical issues and es- ter resources and the planning and provision of sential concerns in environmentally sustain- services, accompanied by substantial sector re- able development. The Bank must provide leadership in accelerating the improvement of living standards while incorporating the objec- ': The 1987 report of the World Commission on Environ- tives of environmentally appropriate manage- ment and Development (the Bmndtand Commission) de- rfned sustainable development as development that meets ment and sustainability into the design of the needs of die present genraion without compwmis- development policies and projects. ing the needs or futture generations:' Environmentally Sustainable Development 43 form. In China. work has focused on water is- ment" were also completed during the past sues and policy reforms as they relate to urban year. environmental management; and in the Brazil- Four major parallel reviews-the second re- ian states of Parana. Minas Gerais. and Sio view of environmental assessments. the imple- Paulo. the principles of water-resources man- mentation review of the Bank's active portfolio agement at the basin level. including consider- of environmental projects, a review of national ation of the use of economic instruments for environmental action plans (NEAPs). and a re- water allocations and poilution control. are be- view of projects involving involuntary re- ing implemented. settlement-were the focus of environmental In the second half of thc r,cal year. ESD activities during fiscal 1994. The resettlement undertook a review of the degree of acceptance review, rather than being carried out as a desk- and implementation of the findings of the 1991 bound and static stock-taking exercise. was de- paper on forest policy.)3 The ongoing liberately designed as a broad process of review-it had not been completed by the end resettlement analysis in the field. carried out by of the fiscal year-is concentrating on the de- the Bank's relevant regional and central units gree to which changes are being made at the jointly with borrowers (see Box 3-2). country level to sector work and project de- Central to integrating environmental con- sign. Consultations on an early draft of the re- cerns into the Bank's activities is the "Opera- view were held in Libreville (capital of timber- tional Directive on Environmental rich Gabon), London, and Washington, D.C. Assessment." which was issued in October Participants included NGOs from both devel- 1989. The directive mandates an environmental aped and developing countries, members of the assessment (EAM for all projects that may have Forestry Advisers Group (which includes the a significant negative effect on the environ- forestry advisers of the principal donor agen- ment. Those expected to have significant. sen- cies), representatives of the timber industry, sitive, irreversible, or diverse effects are and academicians. classified as "Category A" and require a flail Fiscal 1994 saw the publication of World De- EA. Less sensitive "Category B" projects un- velopment Report 1994: Infrastructure for De- dergo a more limited environmental analysis. velopment," which examines the links A first review of EA procedures, conducted between infiastructure and development and in fiscal 1992, found that although they were explores ways in which developing countries realistic, workable. and instrumental in im- can improve both the provision and the quality proving development planning and environ- of infrastructure services (transportation. tele- mental management, problems remained. communications, water and sanitation, power More effort was needed, the review concluded. and gas, and major water works). to strengthen borrowers' capacity to conduct World Development Report 1994 presents effective EAS. The review recommended. new strategies for developing infrastructure in therefore. that LA training in borrowing coun- more effective, less wasteful ways. The report tries be made a priority. The review also rec- shows that the quantity of investment cannot ommended that the Bank seek to move the EA be the exclusive focus of policy. It is also vital process to earlier stages in borrower project that the quality of infrastructure service be im- planning before major decisions-for example. proved. To promote more efficient and respon- siting and technology-are made. sive delivery of infrastructure service, the report points to the need to change incentives through the application of three instruments -commercial management, competition (di- 'tapcr5 siforh alfho fold g csratgnotc dcc elopment is rectly if feasible, indirectly if not), and stake- nccessary fora longer-term solution to the problem of de- holder involvement. forestation. priority should be given in the intcrim to in- The report also identifies trends that will fa- creasing agricultural productivity in poor. densely cilitate improvements in the performance of in- populated areas-epecially thosc adjaent to forested ar- eas or those from where most forest encroachers frastructure. These include innovation in originate-andio expanding nonfarm employmcnt oppor- technology and regulatory management. the tunities in these targeted areas. Second. forest protection new willingness of govemments to involve the will need to be ensured through specific legislation and private sector, and increased concern about so- regulatory measures especially in tropical moist forests. Third. prvate incentives need to bc changed. for cnforce- cial and environmental sustainability. ment of zoning and other egulations is likely to be inef- World Development Report 1994 benefited fective unless they are. Fourth. public investments need from analysis initiated in ESD and published in to be preceded by much more careful environmental as the Bank's Discussion Papers series. Papers on *4sWord ent1R the ~ ~~~~~~~~~~~II World Bank. 1994. World Development Report 1994: in- "Railways, Energy, and the Environment" frastructureforDerdhpment. New Yorkt Obrd Univer- and "Rural Road Maintenance and Improve- sity Press- 44 Major World Bank Progroam Fbical Year 1994 Box 3-2. Review or Projects Involving Involuntary Reseldement In the wake of the Bank's experience with its in- increases political tensions, entails extensive volvement in the Sardar Sarovar projects in In- project delays, and postpones project benefits dia, a task force was formed in 1993 to carry out for all concemed; the benefits lost because of an analysis of 146 projects approved between such unavoidable project delays sometimes far 1986 and 1993 with resettlement components to exceed the marginal cost of a good resettlement ensure that project implementation was being car- package. Ensuring that involuntary resettlement ned out consistent with loan and credit agree- is minimized-and when unavoidable, is carried ments and with Bank guidelines and policy.' out without impoverishing the people Nearly 2 million people were in various stages of displaced-is fully justified, therefore, on both resettlement in the 146 projects, which repre- economic and ethical grounds. sented 8 percent of the Bank's active portfolio of The review showed, once again, that resettle- projects (and 15 percent by worth). ment is nearly always more difficult, more expen- The main product of the review was not simply sive, and more time consuming than generally its final report,' but the process that the review realized. The largest resettlement operations triggered throughout 1993 across the Bank and on move tens of thousands of people-often very the ground. The review process consisted of in- poor people-ong distances in a very short time, tensified field supervision: analysis of project and reestablishing their standard of living is a preparation, appraisal, supervision, and implem- hard task. The inherent difficulty in reestablishing mentation: on-site consultations with nongover- standards of living and community services is mental organizations; sectoral resettlement compounded by the limited technical and institu- studies: development of new technical tools for tional resettlement capacity of most borrowers, resettlementplanning-,and a considerable number as well as by weak commitment from some exe- of remedial actions initiated by the Bank and bor- cuiing agencies. rowers for those projects that were failing to meet During the review period, the Bank tripled its set objectives. resources for resettlemcnt supervision, and more Although task force members found that the supervision missions of projects with resettle- Bank had made significant pmgress between 986 ment components were launched than in the and 1993 in some areas, they also discovered that previous three years put together. Remedial when projects were not consistent with policy actions-they included increasing participation of and processing guidelines. resettlers ended up affected people, finding ways to reduce displace- worse off in some cases. ment, provision of additional financial resources, The single most important message of their re- and adjusting resetrtnent imetables-had the view was that good resettlement can prevent im- effect of considerably improving the Bank's over- poverishment and even reduce poverty by all portfolio. In-house analytical work and train- rebuilding sustainabl livelihoods. Socially re- iDg offered to country officials also contributed sponsible resettlement is also economically ben- during 1993 to improving portfolio managemnenL efiial because the heavy costs of poorly handled In fact, the entirp review process proved to be an resettlement extend well beyond the immediately exceptional opportunity for leaming how to do affected population-to the regional economy resettlement better, for identifying good prac- and to the host population in relocation areas. In- tices, adjusting general approaches to particular adequate resettlement induces local resistance, circumstances, building institutional capacity for The second EA review found that Bank sup- These efforts are beginning to bear fruit. port to activities aimed at building and Quality has improved considerably in impor- strengthening EA capacity in borrowing coun- tant areas such as impact identification and tries did significantly expand in the two inter- analysis; public consultation, especially in the vening years. Support came mainly in the form context of resettlement; and mitigation, moni- of environmental institution-building projects toring, and management planning for projects. aimed specifically at this and related objec- In addition, and even more important, the tives; technical assistance components, aimed Bank has witnessed a diversification of EA ap- at developing EA capacity. in regular invest- proaches into newer areas, both in terms of ment projects; in-country training spearheaded sectoral spread (tourism and solid waste man- by the Bank's Economic Development Insti- agement, for example) and types of lending op- tute and the Bank's regional environmental di- erations (privatization and onlending, for visions: and advice on EA legislation and example). procedures. The Bank has also been successful Progress has been particularly significant as in moving EA "upstream" in borrowers' plan- concerns the preventive dimension of EA- ning processes, as evidenced by the growing minimizing the negative environmental effects number of "sectoral" EAs. of a given projecL But progress was also made Ervlronrnentallv Suslahable Devebpment 45 resettlement. and refining analytical and evalua- * Remedial and retrofitting actions will con- tion methodologies. tinue forall active projects that fall short of policy In the end, the Bank will bejudged on how well and legal provisions. the lessons learned from the review process will * Fuli compliance with procedures and estab- be integrated into its future activities. Important lished safeguards for ensuring project quality will. weaknesses in past Bank practice have been re- be insisted upon. While full implementation re- vealed, and actions to improve Bank resettlement sponsibility rests with borrowing governments. work are under way. Thus: the Bank has a responsibility to follow up care- * The Bank will not fmance projects involving fully on performance, impacts, and outcomes. large-scale resettlement operations unless the * The content and frequency of resettlement government concerned adopts policies and legal supervision will be further improved. and regular frameworks that are conducive to resettlement and adequately staffed supervision missions will with income restoration, take place at least every twelve months. including * The Bank will help borrowers build their in- on-the-ground visits to places where displace- stitutional capacity to implement review before meat and relocation occur. displacement starts with a view to protecting peo- * To sustain progress achieved and to monitor pie's rights. continued compliance with Bank guidelines apd * Bank-assisted projects will avoid or reduce procedures, regional units will prepare annual re- displacement as much as possible through tech- ports on projects with resettlement in their port- nical and social studies for projec design and ex- folio as part of the annual review of portfolio ecution. performance. * The active participation of would-be reset- By setting such exacting nonns for the opera- tlers in the preparation, planning, and implemen- tions it assists and promoting resettlers' reestab- tation of resettlement will be required lishment at comparable or improved income * All projects will internalize the full cost of levels, the Bank will continue to work to narrow resettlement and of the investments required for the gap between resettlement goals and past en- income restoration within total project costs so as trenched practice in many countries. to prevent impover-ihmetiL to prevent impoverishment.M Barks rsC ttlemcnt policy has evolved steadily a Twin-project approaches for large-scale civil s 1980 asmn ofthatpolicyincludeavoid- works causimg resettlement Wil be considered. mnce or minimization or involuntary displacement This approach was used in fiscal 1994, when a - whenever feasib, assistance to displaed persons in $460 -lIUon loan m support of China's Xiaolangdi their efforts to improve, or at least restore. fonner Ev- Multipurpose Project was coupled with a $110 ing standards and eanting capacitr, compensation to million IDA credit to help resettle and restore and dispaced persons for their los at replacement Ost; improve the livelihoods of 154,000 people (direct- promotion of resetlers' and host' participation in ly) and 300,000 people (indirectly) affected by the phnning rsctlement and pmvision of adequate land. multipurpose projcect infastructure, and other comnpensation for grops that may have informal customary rights to die land or re- * The Bank's own institutional capacity will be sources ra-ken for the projecL strengthened, primarily through the better use of ' Wold Bank. 1994. Resettnement and Development: existing staff skills and by adding staff capacity in me Bankwide Review of Projects Involving Inwolun- critical fields. rany Resettlenewn. 1986-93. Washington, D.C on the 'proactive" front in terms of helping slightly better than the average for the portfolio design individual projects and larger invest- as a whole at the end of fiscal 1993. Part of the ment programs that actively enhance environ- explanation of the apparent above-avenage per- mental quality. fornance is the aforementioned "youth" of the The implementation review of environmen- projects in relation to the portfolio as a whole. tal projects covcred ninety-three projects-4.2 Thus, controlling for project "age." it is prob- percent of all projects under implementation at ably more accurate to conclude that environ- the end of fiscal 1993 and entailing commit- mental projects are performing about the same ments of $6.4 billion-that had been identified as the Bank's active portfolio as a whole. as having primarily environmental objectives. As in the case for the Bank's portfolio gen- These operations were approved between fis- emiLy, there also appears to be a clear positive cal 1986 and fiscal 1993, with the majority com- correlation between country income level and ing after fiscal 1990. The operations, therefore, environmental project performance. Only one comprised a rather 'young' segment of the to- ".problem project" was found in an upper- tal active portfolio, middle-income country, compared with the On the basis of supervision ratings, environ- much larger number found in lower-middle and mental projects were found to be performing low-income countries. 46 Major World Bank Progroms Fiscol Year 1994 It does appear, however, that certain types Bank's borrowers is the promotion of "best of environmental projects are performing bet- practices." Best-practices papers, which build ter than others ("brown" projects are doing on completed policy papers, are drawn from better than "green" and "institutional" ones). ESD's operational support work and from rap- Furthermore, as a comparatively recent area of idly accumulating experience as developing Bank lending, there are the inevitable number countries endeavor to put policies into prac- of start-up costs associated with new and often tice. They are brief, practical, and driven by weak national and sectoral institutions. Other real-world successes and failures. During fiscal problems include the relative unfamiliarity of 1994, examples include the initiation of the Ag- executing agencies with Bank requirements; a ricultural Technology News series-consisting tendency in some cases to try to "pack too of four-page notes written specifically for op- much" into single operations; and, in some erational task managers on recent technologi- cases, less thctn full borrower commitment to cal developments in specific branches of project objectives and components, especially agriculture-and the continuation and expan- those not involving physical investment. sion of the Infrastructure Notes series. Tech- Bank assistance in elaborating and imple- nical papers on topics as diverse as air menting national environmental action plans pollution from motor vehicles, experience with (NEAPs) plays a critical role in helping mem- lending for railways, urban infrastructure and ber countries improve their environmental productivity, and sectoral indicators for hous- management NEAPs provide a basis for the ing were also completed. Bank's dialogue with borrowers on environ- The sectoral indicators for housing have mental issues, describe a country's major en- been developed collaboratively with the vironmental concerns and problems, and United Nations Centre for Human Settlements formulate policies and actions to address what- under the Housing Indicators Programs (HIP). ever problems are identified. The responsibil- The indicators reflect the interests of all key ity for NEAP preparation and implementation stakeholders in the sector (end users, suppli- rests with the borrower. By the end of fiscal ers, financiers, and governments) and cover 1994, most active IDA borrowers had com- factors as diverse as the price of housing, pleted NEAPs or equivalent documents, and homelessness, quality, production, invest- several non-IDA countries had completed them ment, interest rates for mortgages, the impor- or were in advanced stages of preparation. tance of housing finance within the overall A srudy of country environmental strategies financial system, subsidies, and taxes. They is currently under way in the Bank: it has been have been collected in fifty-three countries at designed to provide guidance to governments every level of economic development and have in preparing such strategies. The study- been used within the Bank to evaluate priori- "National Environmental Strategies and Ac- iies for policy reform and lending in a number tion Plans-Key Elements and Best of countries. Severalborrowerceuntries(Hun- Practice--is expected to be completed by the gary and the Philippines, for example), with as- middle of fiscal 1995. Its findings wilH be di- sistance from the HIP, have developed housing rected to governments of developing counitries, indicators as a tool for evaluating housing pol- particularly ministries that are primarily re- icies and programs at both the local and na- sponsible for environmental planning and im- tional level and for monitoring the performance plementation. of the sector on a continuing basis. Drawing on The study is finding that the experience with the successful experience of the HIP. sectoral preparingNEAPs has varied considerable from performance indicators are now being ex- country to country. NEAPs need to be country tended to other urban subsectors, including lo- driven and participatory, involving all seg- cal government finance and services, water ments of society and the government. At the supply and sanitation. urban environment and same time, as strategies. national plans become urban transport. more feasible to implement when there are Evidence exists that the failure to pay suffi- clear priorities. Achieving both objectives has cient attention to social factors in development sometimes proved difficult, the study shows. can jeopardize the effectiveness of Bank- Making Development Sustainable: The supported programs and projects. The social World Bank Group and thze Environment, a de- dimensions of development are especially im- tailed review of World Bank environmental ac- portant in dealing with environmental and so- tivities in fiscal 1994, was published in early cial issues. It is increasingly recognized that fiscal 1995. problems can be diagnosed and solutions im- An important element of the support ESD plemented only through the development and provides the Bank's operational departments application of the tools of social analysis. To in delivering assistance of good quality to the bridge the social-dimension gap. preparation of Envronmentaly Susltinable Developrnent 47 a Participation Sourcebook was begun during approaches and build up knowledge step-by- the past year. step in a process of structured learning. The sourcebook. which builds on the find- For example, the Russia Farm Transforma- ings of a three-year learning program funded by tion Study involved setting up an apparatus for the Swedish International Development Au- farm surveys to monitor changes in farm orga- thority, is being prepared in a participatory nization; truaining of staff of the collaborating manner, drawing upon contnbutions of more local institution in farm-survey techniques. than 200 Bank staff and external advisers. The data processing, and analytical methods; and sourcebook will be a loose-leaf action guide, producing an up-to-date picture of the situation providing Bank operational staff with key ques- in the farm sector- The capacity-building as- tions they should ask; best-practice answers to pects of this task are already bearing fruit, as the tackle these questions; brief case studies; and collaborating institution is now conducting a available resources. In addition to the source- foilow-up survey with very litle supervision. book, ESD has also prepared a document pro- Furthermore, the work served as a model for a viding guidance on social assessment (SA)_ The similar study under way that deals with SA draws on best practice from a number of Ukraine. areas. Its objectives are to (a) identify key Protecting the Global Environment. The stakeholders and provide an appropriate ESD vice presidency leads the Bank's efforts framework for their participation in Bank- to address critical global issues affecting the assisted operations; (b) ensure that project ob- environment, agriculture, and infrastructure jectives and incentives for change are and to follow up on the strategic agenda that acceptable to those the project is intended to emerged from UNCED- A part of this work benefit; (c) assess the sncial impact of projects emerges from the Global Environment Facility and minimize adverse .i,pacts, if any; and (d) (GEE). develop capacity at the appropriate level to en- The GEF was established as a pilot program able participation and to carry out proposed ac- in 1991 to act as a mechanism for international tivities. Both the guidelines and sourcebook cooperation for the purpose of providing new will be elaborated upon and improved as prac- and additional grant and concessional funding tical experience is gained, to meet the incremental costs of measures to Training and Seminars A key element of the achieve agreed global environmental benefits work program of the ESD vice presidency is in four focal areas: climate change, biological the training that it provides Bank staff on a diversity, international waters, and ozone- range of topics to support operational work and layer depletion- The agreed incremental costs help improve project implementation. During of activities concerning land degradation. pri- the past year forty-eight training courses were manly desertification and deforestation, as given. Ir addition, seminars, workshops, and they relate to the four focal areas, are also el- study tours were organized, with participation igible for funding. Day-to-day operation of the by experts in their fields from outside the facility is shared among the UNDP, UNEP. Bank. Thus, the Bank cosponsored-with the and the Bank. In addition to providing admin- United Nations Development Programme istrative support to the GEF secretariat, the (UNDP) and the Rockefeller Foundation-a Bank performs two principal functions: as workshop (held in Bangkok) on integrated pest trustee of a new trust fund and as one of the management and biotechnology. Similarly, an implementing agencies. irrigation seminar/study tour in Mexico, con- During its pilot phase. 115 projects, valued at centrating on the successful experience there more than $733 million, had been endorsed by with promotion of water-users' associations, GEF participants, of which sixty-eight (worth brought together Bank staff with irrigation spe- $471 million) had received final clearance. cialists from both developed and developing Forty-two percent of the facility's resources countries. had been allocated to biodiversity projects, 40 Direct Operational Support. A central objec- percent to climate-change projects, 17 percent tive of the Environmentally Sustainable Devel- to international waters projects, and I percent opment vice presidency is to help the Bank's to ozone projects. operational departments achieve the full inte- In March 1994, more than eighty industrial- gration of environmental considerations-with ized and developing countries agreed to re- state-of-the-art technical, social, and economic structure and replenish the GEF Twenty-six approaches-in their project designs (appropri- countries, including several developing coun- ate to local ecosystems and country conditions) tries, pledged more than $2 billion to the GEFs with the objective of long-term sustainability. core fund (the GEF Trust Fund) over the next Operational support activities are viewed as three years. The eight principles that serve as opportunities to explore systematically new the basis for the restructured facility may be 48 Major World Bank Progroms: Fiscal Year 1994 found on page 51 of the World Bank's Annuat an independent Technical Advisory Commit- Report for fiscal year 1993. tee. after a careful review of the global chal- After fifteen months of negotiations. the par- lenges, the work of other institutions, and the ticipants settled on a "double majority" voting centers' proposed programs. The CGIAR is system in a thirty-two-member council to pro- widely considered as an outstanding success. tect the interests of both donor and recipient The past contribution of its research centers to countries. This requires approval by a 60 per- reducing hunger and poverty is demonstrable. cent majority of all member countries, as well Following a recent realignment of research pro- as approval by donors representing at least 60 grams, the centers are committed to grappling percent of contnrbutions. The council will ap- with today's challenges to sustainable agricul- erate by consensus. using votes only in excep- ture, food security. and poverty reduction. tional circumstances. The restructured and At the mid term meeting that took place in replenished GEF represents an innovative New Delhi in late May 1994. proposals for re- mechanism for international cooperation. As vitalizing the CGIAR system were endorsed. one of the GEF implementing agencies. the The proposals aim at stabilizing the system's Bankhas a special responsibilityto assistcoun- financial system and halting the erosion of its tries in integrating their actions to protect the scientific capacity; refocusing the research global environment with their national devel- agenda on approved programs; improving gov- opment strategies. One aspect of this is for the ernance and reforming management with a Bank to ensure that where it is responsible for view to ensuring predictability, transparency. GEF-financed activities linked to Bank- and accountability; linking the CGIR's pro- assisted projects, the GEF component is fully grams with participatory programs at the farm integrated with the project and is not seen sim- level; and developing an action plan and an ply as an add-on. eighteen-month timetatle designed to secure In December 1992, GEF participants re- govemment endorsement of the new strategy. quested an independent evaluation of the pilot In the area offinances, members of the group phase of the facility to guide future planning. stressed their commitment in support of the Reflecting the organizational structure of the $270 million core research agenda. To this end, GEE, the evaluation was conducted under the it was decided to redirect funding of activities oversight of senior evaluation managers from in the complementary program to the core pro- each of the implementing agencies, with the grain, and a proposal by the three cosponsors Bank's Operations Evaluation Department to launch a one-time financial supplement providing the secretariat. An independent brought indications of support of at least $10 panel of experts provided strategic guidance milion in additional pledges for 1994. The and validated the methodology and approach World Bank is considering matching additional used for the evaluation. donor core funding with an extra contrbution The resulting evaluation study, The Global on a 1:2 basis, up to a maximum of $10 million Environment Facility: Independent Evaluation annually, for both 1994 and 1995. of the Pilot Phase. published jointly by the To ensure transparency. accountability, and UNDP. UNEP. and the Bank in May t994, ad- predictability of finances, the CGIAR will vocated some fundamental changes. These in- move toward a new program-budgeting sys- clude articulating more clearly the GEF's tem. The system will clearly identifyr the rela- mandate, goals. and strategies: addressing de- tive role of CGIAR centers in undertaking ficiencies in meeting the GEFs global focus; research programs within the context of a improving the capacities and procedures of im- global research agenda implemented by indus- plementing agencies for managing the portfo- trialized countries, international agricultural lio; and increasing NGO. country, and research centers, the national agricultural re- community-Ievel participation. search systems of developing countries, and The vice president for ESD also serves as nongovernmental organizations. The 1995 pro- chairman of the Consultative Group on Inter- gram and budgets will be presented in a form national Agricultural Research (CGLAR). an in- that facilitates the move towards the new ap- formal association of forty-two public and proach. private sector donors that supports a networkl of eighteen international agricultural research "Thmwiesteencetesin 1995followingthecreation centers." The Bank is a cosponsor of the of a new singte institutional entity for livestock esearch. CGIAR, together with the Food and Agricul- which would comprise the cxisting Intcrnational Live- ture Organization of the UN (FAO) and the stock Centre for Africa and the lntemationalLaboratory UNDP. for Rcsearch on Animal Discases. and the merger of the Intcrnational Network for the Improvement of Banana The centers pursue a research agenda agreed and Plantain with the Intemational Board on Plant GC- upon by the donors on the recommendations of netic Resources. Environmentaly Sustainable Development 49 The Russian Federation became the forty- enterprise crndit programs sponsored by the second member of the group at the New Delhi Internationai Fund for Agricultural Develop- meeting, and South Africa attended for the first ment (IFAD), and the Freedom from Hunger time as an observer. Campaign. An immediate grant of $2 million Outreach. Reliance on policy studies, best- was extended by the Bank to the Grameen practices papers, and other reports and studies Bank to help cover the start-up costs of the for the dissemination of ESD's intellectual out- Grameen Trust for the first year of its opera- put is increasingly being supplemented by tions. The grant is separate from the World briefer specialized ntwsletters that are circu- Bank's normal loans and credits, which are lated widely ("Urban Age," 'ENV Dissemi- made only to governments or involve a gov- nation Notes," and "Forestry Newsletter," ernment guarantee. for example), as well as by informal work- The $2 million allocation to the Grameen shops, seminars, and symposia aimed at en- Trust is indicative of the Bank's commitment hancing collaboration with other agencies. to directly support action-oriented programs Examples of the latter included involvement in that target the reduction of poverty and the al- the Dutch Ministerial Conference on "Drink- leviation of hunger. Other agencies have al- ing Water and Environmental Sanitation: Im- ready contributed to the trust, and the Bank's plementing Agenda 21" and continuing modest contribution reinforces the institution's collaboration with the bilateral aid agencies of intent to join donors and other partners to ex- Denmark and Sweden on water resources- plore programs that address the credit and sav- management issues. ings needs of the self-employed poor and to The First Annual ESD Conference (Septem- support institutions whGse aim is to help those ber 30-October 1, 1993), convened at the who are in the greatest need. The Grameen Bank's headquarters, focused mainly on the Trust was founded by the president of the question of properly identifying the costs and Grameen Bank, Mohammed Yunus, one of the benefits of alternative uses of natural re- speakers at the conference. sources. The hundreds of experts attending the Other speakers included Boutros Boutros- talks also looked at the growing need for better Ghali, secretary general of the United Na- managementinthefaceofworseningshortages tions; Ketumile Masire, president of and increasing pollution. Botswana; former United States president T.e conference yielded a rich discussion of Jimmy Carter (in his capacity as a leader of the some of today's cutting-edge environmental Carter Center, a nongovernmental organiza- challenges. Its purpose was not, however, to tion); World Bank president Lewis Preston; look for a perfect solution to the world's envi- and Congressman Hall. ronmental problems; instead, it set out to Lending operations. Li fiscal 1994, lending change the processes by which solutions are in support of environmentally sustainable de- identified by involving people and focusing on velopment totaled $10,203 million, or 49 per- the environment while promoting economic de- cent of total Bank lending. Some $6,835 million velopment of the investments were supported by IBRD ESD also organized a Conference on Actions loans, while $3,368 million were supported by to Reduce Hunger Worldwide (November 30- IDA credits. December 1, 1993). The inspiration for the con- Eight projects with primarily environmental ference came from a twenty-three-day fast objectives, invoi;ring commitments of $748 earlier in the year by United States Congrss- million, were approved. Seventeen projects man Tony Hall to raise public awareness about contained significant environmental compo- the growing scourge of hunger. The confer- nents that advanced the green agenda (ten ence, which was planned in collaboration with projects, $742 mnillion) and the brown agenda other multilateral development agencies and (seven projects, $913.6 Million)."6 NGOs from both the developing and industri- Lending in support of agriculture and alized world, aimed at strengthening global ef- natural-resource development totaled $3,907 forts to reduce hunger. million for forty-six projects; transportation The Bank announced at the conference its lending amounted to $3,293 million (twenty- willingness to work with other donors to fund five projects); fifteen investments in the urban credit organizations that offer very small loans to the very poor as part of an overall program to empower them to take control of their lives. The program is similar to several successful "In fiscar 1994. '-environmenc was formally included as a programs in the developing world such as the sector.'jo be so classifred. a project must primarily ad- dress one of four conccrns: environmental institutional Grameen Bank of Bangladesh, the Badan development. natund resources managemcnt. pollution Kredii Kecamatan of Indonesia, the micro- controllwUate management. sad resetlement. 50 Major World Bank Programs: Fscal Yeor 1994 development sector amounted to $1,279 million; vate investment by enterprises in developing and commitments totaling $975 million (ten countries. projects) were made in the water supply and Suipportfor operations- In its efforts to help sewerage sector- develop more vibrant and competitive private sectors, a central concern of FPD has been to Financial and Private Sector Development improve the quality and effectiveness of Bank During fiscal 1994. the World Bank Group- operations-the focus of more than two thirds the World Bank, the International Finance of FPD's resources. Activities during the past Corporation (IFC), and the Multilateral Inver year have included support to country teams ment Guarantee Agency (MIGA)-stepped ap for better design and execution of projects, its support to developing countries to expand more and better staff training, better programs their private sectors and build up theirfinancial of technical assistance, increased networking sectors. The objective is to enhance their pros- with 'best-practice" innovators throughout pects for growth and to make their economies the world, and enhanced dissemination of responsive enough to compete in today's fast- knowledge and best practices to Bank staff and moving global economy- The Bank Group's borrowers. support for private sector development and As was highlighted at a seminar on finance privatization also helped governments reduce and private sector development for the Bank's their responsibilities and fiscal burdens- executive board in March 1994, with govern- freeing them to focus on poverty and the envi- ments everywhere reexamining their role in de- ronmenL velopment and reorienting public sector As last year's Annual Report noted. the activities to maximize efficiency, the private Bank Group is looking for ways to understand sector is increasingly being asked to help meet the dynamics of the environment affecting pri- their development priorities. At the same time. vate secaordevelopment. It is also forging links today's worldwide trade and lmsiness pattems among local institutions critical to creating a imply a higher competitiveness threshold and vibrant environment for business. And it is much higher standards of responsiveness for learning from-and disseminating-successful government institutions and firms alike. country experiences in implementing reforms. Accepting this reality requires a fundamental Contributing to much of this work is the change in what governments do and in the way Bank's new central vice presidency forfinance they relate to the private sector. It means that and private sector development (FPD), which, governments have to move away from con- during fiscal 1994, completed its staffing and troaled, inward-looking economies to competi- organizational set-up. Bank Group operations tive, outward-looking ones And it means that and activities in support of private sector de- firms have to move from courting the state for velopment focused on three main areas: special privileges to courting the markets for D effectively supporting private sector devel- profits. opment through an increasing range of actions: Governments thus have to establish a com- * better dissemination of knowledge; and petitive environment, a legal and regulatory * expenmenting with innovative ideas. system that can support the market. and insti- Supporfing Private Sector DevelopmenL The tutions that can help firms upgrade their capa- Bank is fostering the private sector throughout bilities. They have to move from being owners the developing world in a variety of ways. and operators to being competent regulators World Bank adjustment loans and credits, for and partners. example. help produce a competitive and at- During fiscal 1994 the Bank Group continued tractive business environment. as well as help to help its borrowing countries intensify their reform in the financial sector. In addition, the efforts in privatizing publicly owned enter- Bank Group is supporting about $25 billion prises, redesigning regulatory frameworks. worth of private investment annually. The and, more generally. developing an attractive Bank's financial intermediation loans of about business environment- By the end of the fiscal $1.5 billion a year support $4 billion in private year the Bank and the IFC jointly had virtually sector investment: the IFC-through its loans. completed seventeen private sector assess- equity. and credit lines-provides about $2.5 ments- Their findings have been disseminated billion a year. and with a much bigger multi- through seminars and workshops with a view plier of about 7 to 1, supports approximnately to assisting governments develop solutions in $18 billion worth of investment; and MIGA's consultation with the private sector. The re- guarantee operations are currently running at ports themselves, however. have typically pre- about $400 million a year. supporting about sented the Bank Group's own diagnosis and $3 billion in private sector investments. That recommendations to the governments con- $25 billion represents about 10 percent of pri- cerned as a means of assisting them in their Fnancial and Private Sector Development 51 policy formulation on private sector Privatizationremainedacentralfocusofthe development-related issues. The recommenda- Bank Group's and FPD's assistance to a geo- tions of these assessments have helped the graphical cross-section of member countries BanICs country-assistance strategy and lending during fiscal year 1994. Many initiatives were program (see Box 3-3). Over the past few aimed at establishing the institutional frame- years, almost three of every four Bank- work for privatization in such a way as to fa- supported adjustment operations have in- cilitate efficient, timely, and transparent cluded components that helped establish divestitures. Major programs were undertaken competitive markets and an environment to in a range of economies, from larger (Turkey) support the development of a successful pri- to smaller (Bolivia and Fiji). The targets for di- vate sector. There has also been an increasing vestiture included the sale of small businesses effort to generate the institutions fundamental and shops. medium-sized and large enterprises to the development of competitive and respon- in the tradable sector, and public utilities. The sive markets-customs and tax. technology. IFC has taken an active role in technical assis- technical education. and standards and patents tance for privatization in Russia, helping to de- institutions, for example. velop suitable methods built around an easily Box 3-3. Private S&eor Asse_unts To sharpen the focus of its work on private sector ities for the private provision of infrastructure and development, the Bank introduced in fiscal 1997 a services that are currently being provided by the new element in its program of economic and sec- govemnment; and tor work-the private sector assessmenL As of * report on the entities in the financial sector June 30, 1994, seventeen assessments had been and explore how well the sector offers access to completed (of which ten were completed during credit to the business community. the past year). Six additional assessments are cur- When these areas are not covered in economic rently under preparation, and fourteen more are and sector work, they are covered by a private expected to be started and completed during the sector assessmenL Typically, however, a private next two years. sector assessment focuses more on the business These assessments differ from other Bank eco- environmenL How is business regulated? What nomic and sector work in that thcy involve the are the costs ofexcessive regulation? Are monop- formal cooperation of the llFC. This cooperation olies and anti-competitive practices properly has had several beneficial effects It helps focus regulated? Does the state supply its public ser- assessmentstightlyonthoseelementsoftherasi- vices efficiently? Does the legal system permit ness environment that directly affect private busi- the writing of loan contracts that cover importar ness activity, and it permits the Bank to take economic transactions? Does it permit these con- advantage of the IFC's considerable transactions tracts to be enforced? experience in the private sector. Cooperation also Private sector assessmcnts have turned up sev- helps ensure that the Bank and the IFC pursue eral broad areas of intercst. consistent private sector development strategies * Many high-payoff returns have oome from and that the country dialogue, economic and sec- small and uncontroversial changes in practice tor work, and lending operations reflect joint that, nonetheless. have caused private sector ac- BankIFC concems. tivity to take off. In general, a well-formulated private sector as- * Private sector assessments have helped fo- sessment descnrbes the structure of the private cus the Bank's other economic and sector work sector in a given country, identifies the key con- more sharply on private sector developmrrent con- straints to its development, and lays out econom- cerns. ically efficient ways for the country to remove * Recently completed surveys of private enter- those constraints. prises that assess the institutional and policy The exact content of a private sector assess- framework that governs private sector activity in- ment depends largely on other economic and sec- dicate that among the regulatory constraints that tor work that has been prepared for a country. businesses face, tax and labor regulations are the Typically. this work would: most burdensome. Surveys have found regula- * set out the major macroeconomic issues fac- tory compliance costs to be high-in one in- ing the private sector and discuss how trade bar- stance, taking up as much as 26 percent of senior riers and price distortions might lead the private management time. sector to make investments that are not condu- * Failure of public infrastructure is a large cive to growth; problem. Infrastructure problems tend to be sec- * discuss the merits of different public invest- tor specific. although larger firns in any sector ments and expenditures, suggesting economically are better able to bear the costs of infrastructure efficient changes in spending and raising possibii- failure than smaller firms. 52 Major World Bank Programs Fscal Year 1994 replicated open voucherprocess. The IFC'sas- and water supply and treatment. The IFC's in- sistance began with model approaches for vestments in this sector have risen sharply in privatizing small-scale enterprises and then recent years. The corporation's infrastructure truck transport, followed by voucher privati- operations for fiscal 1994 were in excess of zation of medium and large-scale enterprises. $550 million in terms of net financing ($1.29 bil- The Bank Group has also continued to play a lion gross), for about $5 billion worth of central role in the design and implementation of projects. These figures represent an increase of mass privatization schemes aimed at introduc- 80 percent to 90 percent over fiscal 1993 fig- ing sweeping ownership changes in such tran- ures. sition economies as Kazakhstan, the Kyrgyz Telecommunications is a good example. As Republic, Moldova, Russia, and Ukraine. was highlighted at ajoint Bank-IFC seminar on Work is also underway-in many of these tran- telecommunications for the executive board in sition economies and in Latin America-to de- February 1994, developing countries must in- vise and implement programs to support the vest about $30 billion a year just to provide the growth and sustainahility of recently privatized basic infrastructure to sustain economic enterprises. growth and meet current demand. Even with The Bank's traditional agenda in dealing with the support of the Bank Group and other ofli- state infrastructure monopolies was to expand cial lenders, there is at least a $20 billion gap in the network, introduce new technology, and financing-a gap that only the private sector strengthben operating entities. The emphasis can fill. was on least-cost design, efficient procure- To mobilize such amounts of private capital, ment. and the financial and managerial auton- more and more developing countries are un- omy of operating entities. For this, the main dertaking broad reforms in telecommunica- instruments were Bank investment loans and tions. The time for this is propitious. Rapid the use of the ECO-expanded cofinancing technological change, declining costs. and operations-program. good potential for fast growth-unparalleled in In today's world, the move toward increas- other sectors-open the way to a range of own- ing private participation in infrastructure is ership and management structures. driven by dissatisfaction with the performance The Bank Croup is supporting these reforms of state-owned and state-operated infrastruc- by acting as agent of change and using a wid- ture enterprises. At the same time, government ening range of Bank, IFC, and MIGA instru- finances are precarious, while investment ments to attract private capital and needs are on the order of $200 billion a year. management. Under joint approaches of the And technical change is making it possible for three institutions, flexible packages of techni- smaller scales to be economical-and private. cal assistance, lending, investment, and guar- Seeking greater efficiency and better value antees are being tailored to individual country for money, regulatory reforms can facilitate situations. competition by unbundling potentially compet- The Bank's work on energy during fiscal itive ac:ivities (electric power generation and 1994 focused on energy efficiency, energy sec- distribution) from less competitive activities tor restructuring and regulation, private sector (power transmission). involvement, gas tradc, rural energy, house- Where full-fledged competition is absent, hold fuels, and renewable energy sources- complementary regulation aimed at protecting with particular emphasis on the analysis and the public interest can improve efficiency. New mitigation of environmental impacts. EPD con- approaches to regulation are evolving, too- tinued its analysis of success factors in energy- aimed at improving incentives for cost control efficiency programs-with a view to designing and technical innovation. The choice of the better country-specific and mark-et-based ap- right regulatory approach is complex, and proaches for improving energy efficiency on while some are better than others, there is no both the supply and demand sides. Various in- best scheme for all circumstances. Much de- itiatives assisted sectoral reforms in key coun- pends on each industry's structure and each tries. The Bank encouraged cross-fertilization country's institutional and civil service capac- through technical assistance, seminars, and ity. workshops for policymakers, notably in Brazil. Private sector financing of infrastructure is China, India, and several countries of Central growing fast, although it is still fairly small. and Eastern Europe and the former Soviet Both the number of countries and subsectors Union. involved have expanded significantly. Apart The Bank strengthened its work on natural from power and telecommunications, private gas, which is abundant and environmentally participation in infrastructure is entering areas clean. The challenges have to do with the cdis- such as airports, railways, ports, toll roads, tance of many gas fields from the market and Financial and Piwvte Sector Development 53 Box 3-4. Managing Energy The joint UNDPIBank Energy Sector Manage- During the past year, ESMAP assisted coun- ment Assistance Programme (ESMAP) was cs- tries such as Bolivia, India, Morocco, and Poland tablished in the early 1980s to assess the effects in in planning and carrying out a restructuring of key developing countries of dramatic changes in cn- segments of their energy sector. ESMAP house- ergy prices. With the help of more than a dozen hold and rural energy activities, one of the pro- donors, it now focuses mainly on sector restruc- gram's long-term strengths, continued vigorously turing, regulation, energy efficiency, and house- in Bolivia, Chad, India, Jamaica, Mali, Rwanda, hold fuels, as well as on institution building and and Viet Nam. Similarly, energy efficiency and policy advice in selected countries. ESMAP's ac- conservation efforts, including institution and tivities, integrated into the Bank's Industry and local capacity-building work and training in Energy Department, are often vital complements demand-side management, have been a major fea- or preconditions to Bank operations and bilateral ture of ESMAP work in Brazil, China. Pakistan, aid programs. Tanzania, Zimbabwe, and elsewhere. Oil and gas In fiscal 1994, ESMAP focused on assisting de- activities remained important in countries such as veloping countries as they embark on "second Mozambique and Morocco, as well as in several generation" energy strategies. often linked to Central and Eastern European countries that broad economic reforms. During this phase, tra- have substantially underused capacities and an ditional technical assistance activities take place urgent need for reliable and clean energy sources. in conjunction with the implementation of major In this respect, trade issues associated with the economic reforms-including restructuring and development and use of natural gas resources are regulatory adjustments, price and tariff an area of particular emphasis for ESMAP's revisions-and new investment programs that in- present and future activities. creasingly embody environmental concems. the difficulty of transporting the gas. During tions and their environments. Through finan- the year, Bank work focused on improving the cial sector adjustment loans and similar oper- regulatory framework and on supporting new ations, the Bank is working with borrowing projects for transporting gas to the markets-in countries to build better systems of prudential such countries as Argentina, Bolivia, and Pa- bank regulation and transparent accounting. kistan. Supervision has been strengthened to ensure FPD continued to administer the joint that reasonable standards of bank capital are UNDPIWorld Bank Energy Sector Manage- maintained-along with the management ca- ment Assistance Programme (ESMAP), now pacity necessary to see that it is effectively de- supported by fifteen bilateral donors. The pro- ployed. Assistance has also been delivered grain provides technical assistance to help de- directly to banks, through capacity-building veloping countries implement key policy operations and financial restructuring to reforms for making the energy sector more ef- strengthen their ability to respond to effective ficient and ensuring that investments in the sec- enterprise demand for investment capital. tor make the most use of scarce domestic and Bank restructuring has become a frequent external resources (see Box 3-4). component of Bank operations. It aims at iso- In the realm of financial systems and capital lating and tackling the nonperforming assets of markets, experience shows that when a bank- the banking sector. Bank management and pro- ing system is in crisis, strong measures are re- cedures also need reform to prevent the re- quired at several levels. At the broader level of emergence of subsequent asset problems. the banks' business environment, three types Once the banks are overhauled, it is vital to of action are necessary. First, the macroeco- strengthen durably the institutions and pro- nomic environment has to be improved, and cesses of bank supervision and regulation so enterprises restructured so they become that a recurrence of asset problems is fore- healthy, productive borrowers. Second, the stalled. Because the process of bank restruc- interest-rate regime and the - chemes that pro- turing is long and arduous, it is vital that Bank vide targeted, subsidized c;- dit need reform. supervision of associated loans be intensive for Third, the financial infrastructure, including several years. Without intensive supervision, it the legal, accounting, and regulatory frame- is unlikely the process of reform will maintain work, needs to be upgraded. sufficient momentum and avoid a relapse. - Because the financial health of banks deter- If banking intermediaries are in good health, mines the quality of resource allocation in an the Bank and the IFC can usefully lend through economy, a principal focus of the World Bank them. Financial intermediary lending, an im- has been to help strengthen banking institu- portant instrument for the Bank in achieving its 54 Major World Bank Programs: Rscal Year 1994 developmental objectives, can be very crflc- opment. The Bank's work in these areas un- tive in reaching several classes of borrowers dergirds its financial role. With its repository of (small industry. farmers. the housing market, research, knowledge, and information about municipalities, and infrastructure developers). development-and w.th its unique global This lending is a means for the Bank Group to reach-the Bank is increasingly becoming a deliver to borrowers the benelr of its excellent knowledge-based institution. The global econ- credit standing in global financia! markets. And omy is increasingly driven by knowledge-by as the reforrn and restructuring ei forts of linan- ideas. relationships, and innovations. And cial sector adjustment loans bea-r fruit-and fi- value added and comparative advantage now nancial intermediaries begin to function come as much from these factors as from raw efficiently in a sound business environment- materials, labor, or capital. financial intermediation lending may well again As countries move up the developmeent lad- emerge as an important part of the Bank's lend- der. their ability to compete and integrate into ing activities. complementing the IFC's suc- world mark-ets moves beyond knowing w1hat to ecssful credit line activities. Market pricing of do to knowing htow to do it. The Bank is thus such financial intermediation loans is essential doing more as a collector and disseminator of in all cases. best practices and innovations for meeting the The Bank and the IFC are also engaged in a broad array of requirements to compete in variety of capital-market development activi- world markets. ties. Complementing the IFC's long-standing FPD has actively disseminated knowledge work with capital markets in developing coun- about best practices through conferences, sem- tries, the Bank is concentrating on the broader inars, and training programs, often held in col- issues-such as regu!ation, institutional invest- laboration with the IFC. In fiscal 1994. FPD ment capacity, and contractual saving held sixty seminars and training sessions, pro- schemes. TIhis work typically includes the pro- viding more than 1.800 person-days of training motion of credit transparency through such to Bank staff Oargely on private sector devel- channels as independent rating agencies and opment) and 2,000 person-days to external par- the development of simple, standardized secu- ticipants (largelv on finaricial sector rities, such as bank debentures. The Bank and development, industry, and energy). The the IFC have collaborated closely in capital- Bank's six regional vice presidencies, the IFC. market development in Mexico. where a joint and MIGA also organized similar events, cov- Bank-IFC-Inter-American Development Bank ering a broad array of topics. team worked on the design of promising struc- In May 1994 an innovative Bank seminar on -ures for a private infrastructure-financing fa- international experience in restructuring the cility. coal industry drew government officials from a The Bank's role in developing capital mar- broad range of ministries in Russia, as wefl as kets has depended on the needs and capabili- industry experts. In addition, a June 1994 con- ties of its borrowers. In the weaker economies ference, 'Development, Environment, and and in the transition economies, the Bank has Mining: Enhancing the Contribution of the focused primarily on the provision of basic fi- Mineral Industry to Sustainable Develop- nancial services and the creation of sound ment'-cosponsored by various international banking intermediaries. For many borrowers, organizations and attended by 300 government, the Bank has focused on developmental lend- industry, and NGO representatives two thirds ing through financial intermediaries-if their of them from developing countries-covered health was assured. For sophisticated borrow- issues related to mining activities and the pres- ers, including many larger borrowers such as ervation of the envircsiment. Argentina and Mexico, the Bank has been ac- The Bank and the IFC have forged informal tive in providing assistance to promote capital and formal ties with a range of trade groups. markets. The Bank's resources have also commercial enterprises, business-promotion helped strengthen the capacity of governmemnts agencies, multilateral organizations. and to promote acceptance and liquidity for secu- NGOs to bring new ideas to the Bank. build ritfes backed by creditworthy issuers, which public support, and initiate joint programs. might otherwise be unmarketable as a result of The Bank has also begun holding industry- concerns about broad economic policy and per- by-industry roundtables to create an environ- formance. ment for dialogue and problem solving. A Better dissemination of knowledge. One of series of workshops and roundtables on the pri- FPD's main responsibilities is to enhance the vate provision of power supply -was conducted Bank's role in the realms of knowledge. policy with producers, regulators. donors. govern- advice, and dissemination of best practices in ment representatives, and developing country the area of financial and private sector devel- operators. These fora helped foster a broad di- Financial and Private Sector Development 55 alogue, allowed the Bank to listen to experts In principle. the project could have been from outside, and facilitated a consensus on the structured as a Bank guarantee or as a loan agenda for moving ahead. In the oil and gas fully disbursed into an escrow account, rather sector, the Bank has sponsored workshops and than as a loan with disbursement contingent on conferences for investors and host countries to market conditions. The form of the Bank's develop better understanding of gas trade and credit extension was not crucial. The product markets, and of opportunities for investment, innovation lay in the creation of the facility and It has also used these fora as a means of dis- its associated fund-and its potential for help- seminating experience and best practices. In ing local market institutions to grow. The the same spirit, the Bank and the IFC worked project also says much about the Bank's will- with the government of Morocco and the pri- ingness to change. It would disburse against vate secto; on developing options for attaining financial assets rather than goods and services; quickly a higher threshold of competitiveness, it is supporting market development as its prin- As a follow up to this work. the Moroccan gov- cipal objective: and it is focusing not on Bank ernment hosted a major seminar in early June disbursements but on facilitating market flows 1994 with the private sector on ways to im- and creating confidence. prove the business environment and compete There was also a Bank effort to expand fi- in global markets. nancial intermediation lending by developing a Experimenting with Innovative Ideas. During new format, using the better intermediaries in the past year. the Bank intensified its work on countries, with as light a structure as possible. renewable energy alternatives, working with The $120 million Private Investment Credit countries, representatives from the energy in- Project for Tunisia, approved in December dustry, and NGOs. The objectives are to iden- 1993. epitomizes the new approach. Under the tify and prepare solar energy projects suitable old approach, the Bank would have insisted on for financing by the Global Environment Facil- an elaborate structure for apex operations and ity and other funding sources-and to encour- on close monitoring of all lending decisions. age collaboration among countries in research Now, most lending decisions are up to the in- and development and in demonstration termediaries, whose own capital is at risk. projects. Small and medium-sized enterprises have The Bank has also been active in developing an important role in creating jobs. But their new types of lending assistance to support the special technical, marketing. and financial increased role of the private sector in the pro- needs have proved difficult to meet in a cost- vision of public services. effective way. To move forward on this, the To support domestic bond markets, the Bank Bank has been working with four NGOs with has designed catalytic operations that create a strong track records in delivering credit bridge between institutional investors (pension schemes. The repayment rates of many of funds, insurance carriers, mutual funds) and these schemes have been high (90 percent to 99 the need for long-term funds for enterprises percent), but their transaction costs have also and infrastructure. This will enhance the sus- been high-primarily to cover their start-up tainability of the financial system in borrowing costs and the technical assistance needs of countries and reduce the heavy reliance on for- their borrowers. The Bank has been helping eign exchange. these NGOs devise sustainable and replicable A capital-market development project in Ar- programs, obtain donor finance, and disseni- gentina broke new ground by finding effective nate the results of their efforts. The Bank has ways of fostering the growth of local market also engaged governments in policy and insti- institutions. The $500 million Capital Market tutional issues that affect small and medium- Development Project, approved in March sized enterprises. In this capacity. it acts as a 1994, will help prime-rated commercial banks broker and partner to help NGOs extend the overcome longer-term funding constraints reach and elt ztiveness of their programs. through a backstop facility that would ensure them a source of continued funding at prede- termined financial costs. r6_ Section Four World Bank Operations: Fiscal Year 1994 World Bank (IBRD and [DA combined) Adjustment lending. at $2.425 million. ac- commitments to countries during fiscal year counted for 12 percent or the World Bank's fis- 1994 totaled $-0,836 million. down $2,860 mil- cal 1994 portfolio (S510 million, or 4 percent. lion from the previous year. for the IBRD; $1,915 million. or 29 percent, for The decrease was accounted for principally IDA). In fiscal 1993, adjustment lending by a sharp decrease in commitments from the amounted to slightly more than $4.000 million ITBRD-from $16,945 million in fiscal 1993 to ($2,645 million for the IBRD and $1363 million $14,244 mlllion. IDA commitments, at $6,592 for IDA), or 17 percent of that year's portfolio. million, were only marginally below fiscal year To a certain extent, the decline in adjustment 1993's $6,751 million amount. One project, for lending has been purposeful, especially in $30 mnillion, in the Occupied Territories was ap- Latin America, where the transition from ad- proved. It was funded by the $50 million Trust justment to lending operations is well under Fund for Gaza, which had been approved by way, and in the Middle East and North Africa the executive directors in the first half of fiscal region, where no further adjustment operations 1994. are currently being planned for Egypt, Mo- Shortfills in the IBRD's lending program, as rocco, and Tunisia. compared with the budget, which set indicative In addition, the explosive increase, to $177 WRED lending at between $17 billion and $19.5 billion net, during 1993 of capital flows to de- billion, were particularly sharp in Latin Amer- veloping countries .liminated, in some cases ica and the Canbbean, in the Middle East and (India, for exarAe), the balance-of-payments North Africa (where the lending program in Al- justification for adjustment lending. geria has suffered), and in South Asia, parnic- The principal reason for the turnaround in ularly in India- Increases occurred in East Asia private flows has been the economic policy re- and Pacific (up $219 million) and Africa (up $81 forms of developing countries, especially million). privatization, fiscal consolidation, greater The number of IBRD and IDA operations ap- openness to trade, reduction of commercial proved in fiscal 1994-228-was slightly lower bank debt overhangs. domestic price liberaliza- than the previous year's 245- One hundred tion, and market-oriented reform. To an un- twenty-four EBRD operations were approved, quantifiable extent, the World Bank has helped as opposed to 122 in fiscal 1993. The lending- to foster the environment that has allowed instrument "mix"' in fiscal 1994 showed an in- these flows to increase through its support of crease in investment operations, which could policy reform. not compensate, in volume terms, forthe larger It cannot be assumed, of course, that $177 size of a typical adjustment loan. billion in flows will continue to find its way to The largest borrower of IBRD funds was developing countries annually. Some of the China ($2,145 million for eight projects), fol- money is volatile, and market perceptions, as lowed by Mexico ($1,530 million for five well as relatve returns, will change. One of projects), and Russia ($1,520 million for six the risk in the years ahead for the developing projects). The three largest borrowers of IDA countries is the possibility of a substantial de- credits were China ($925 million for six cfine in these flows and the associated conse- projects), India ($835 million for six projects), quences. and Bangladesh ($597 million for three projects). The sector with the largest number of ap- The lower level of World Bank lending had proved projects was agriculture (forty-six its consequence for disbursements, as well, projects), followed by transportation (twenty- since a substantial part of the reduction in lend- five projects) and 'multisector," which in- ing was caused by a decline in fast-disbursing cludes support for reform programs and adjustment assistance. Gross disbursements to emergency imports (twenty-two projects). countries by the Bank totaled $15,979 million in Dsburserments 57 Table 4-1. IBID and IDA Foreign and Local Disbursements, by Source of Supply farmounts in miNions of US ddlars) IBRD and IDA Net advance Foreigne Local disbuimentab ToLal Period Amount Amount % Amount 9 amount Cumulative to June 30, 1989 85,673 58 58,218 39 3.761 3 147.652 Ftscal 1990 8,883 57 6.099 39 648 4 15,629 Fiscal 1991 8,877 57 6.6t96 42 184 1 15.667 Fiscal 1992 9,038 55 6.807 42 537 -3 16.381 Fiscal 1993 9.813 56 7,887 45 -325 -2 17,375 FLscal 1994 9,009 56 7,442 47 -473 -3 15,979 Cumulative to June 30. 1994 131,294 58 93,059 41 4,331 2 228.684 NoTE: Details may not add to totals because of ronding. a. Anwunts exclude dcbt reduction disbursements oSr.160 million in FY90. S313 mion in FY91, 550 mElon in FY9, and 5515 million in FY93 for IBRD. b. Netadvance disbursments are advawnces made to special ccounts net of amounts recovered (amounts forwhich the Bank has applied evidence of expenditures to recovery of the ousanding advance). Table 4-2. IBRD and IDA Foreign Disbursements, by Source of Supply (amounts in mllions or US dollars) IBRD IDA OECD Non-OECM Tota OECD rfon-OECD Total Period Amount 9% Amount % Amount Amount S Amount 9G Amount Cumulative to June 30, 1989 55,468 86 8,846 14 64,314 17.427 82 3.932 18 21,359 Fiscal 1990 5,290 79 1,388 21 6,678 1,491 68 714 32 2,205 Fiscal 1991 4,953 80 1,230 20 6,183 1,802 67 891 33 2,694 Fiscal 1992 5,067 76 1,634 24 6,701 1,515 65 822 35 2,337 Fiscal 1993 5,048 72 1,928 28 6,976 1,784 63 1,052 37 2,837 FLscal 1994 3,966 73 1.491 27 5,457 2,175 61 1,378 39 3,553 Cumulative to June 30, 1994 79,793 83 16,517 17 96,310 26,194 75 8.791 25 34.984 Non: Disbursements for debt reduction and net advancedisbursements are excluded. Details may not add to totals because of munding. OECD amounts are based on cufrent OECD membership. excludn Mexico. which became a mcmber in May 1994, fiscal 1994: 510,447 million by the IBRD and ciency in the execution of the project; the $5,532 million by IDA. In fiscal 1993, gross dis- Bank's interest, as a cooperative institution, in bursements by the IBRD and IDA were giving all eligible bidders from developing $12,942 million and $4,947 million, respec- countries and developed countries an opportu- tively. (The IBRD amount in fiscal 1993 in- nity to compete in providing goods and works cluded extraordinary disbursements of $1 financed by the Bank; and the Bank's interest. billion to Peru when it cleared its arrears.) as a development institution. in encouraging Disbursements, by source of supply. Pro- the development of local contractors and man- jects financed by the World Bank require pro- ufacturers in borrowing countries. In most curement from foreign and local sources to cases, international competitive bidding is the achieve project goals. Disbursements are made most effective method of procurement. The primarily to cover specific costs for foreign Bank prescribes conditions under which pref- procurement and some local expenditures. erences may be given to domestic or regional The procurement rules and procedures to manufacturers and, where appropriate. to do- be followed in the execution of each project mestic contractors. Through the end of fiscal depends on individual circumstances. Three 1994. 58 percent of IBRD and IDA disburse- considerations generally guide the Bank's re- ments covered goods and services provided di- quirements: the need for economy and effi- rectly by foreign suppliers located outside the 58 World Bank Operatioist FIscal Yeor 1994 Tablk 4-3. IBRD and EDA Payments to Suppliers in Active Borrowing Countries for Foreign and Local Procurement in Fiscal 1994 (millions of US dollas) LouI Foreign 'find fia Borrowing countries procurea jxonent sun disbursmnunt Albania.........4 1- 4 Algeria.~~~~~~~~~~~46 3 49 03 Angola.2.............t 2a Atgentina.............173 216 199 1.2 Bahamas, The.----......t t t Bangladesh.....128 6 134 0.84 Barbados.1.....2 3 Beli.......... ...3-3 Stain ..............7 2 9 0.05 Bhutan .........I 1' I Bolivia......... 31 1 32 0.20 Botbwana ...........4 2 6 Brazil ..............6; 151 529 3.31 BWlgria .............t 16 16 Gao0 Burlina Faso ...........28 1 29 0.18 Bumundi .............14 t 14 0.09 Cameroon ............19 3 0.14 Capc Verde............2 I 3 Central Afiican Republic ......6 t 6 Chad ..............10 to1 0.06 Chsile..............78 12 90 036 China ..............1,104 273137 8.62 Colombia.............175 6 181 1.14 Cosmors ............. t2 Costa Rica ............6 6 12 0.08 CMe d'Ivoire ...........20 41 61 0.38 Croatia.-.: ...- 11 11 00 Cyprus._21 43 0.27 CzechReubic.- 27-Z 27 0.17 Dj§Iboti ..............1 2 Dominica..............f t Dominicaa Repu'blic ........14 2 16 .0.10 Ecuador .............64 1 65 0.41 Egypt. Arab Republic or ..... 54 6 60 0.37 El Salvador............22 1 23 0.15 EqaoilGuinea .........1 5 6 Esronia . ........2 1 3 Ethiopia............. 16 8 24 0.15 [ji .................2 - 2 Gabon..-------------4 1 5 Gambia,.The ..4 t 4 Ghana..42 3 45 0.21 Guatemala ..------2 2 3 Guinea........ ......17 t 17 .1 Guina-Bissau...........5 3 S Guyana.-------------3 1 4 Honduras.............5 1 6 Hungary .............74 61 135 0.84 Inia.--------------1.206 133 1.339 838 Indonesia.............840 36 877 5.49 Iran. Islaimic Repubtic of ......22 7 29as1 Jamaica .............13 t 13 0.08 Jordan..............32 3 35 0.22 Kaxakhstan............t t a Kenya.-------------39 so 90 0.56 Korea. Republic of.........165 343 508 3.18 Kyrgyz Republic..........6 t 6 Lao People's Denm. Rep. .3 12 14 0.09 Latvia .........- 2 2 * Lebanon. 3 6 9 0.06 Lesotho.3.....3... ULtuania.............6 2 80.05 Disursements 59 Laca Foreign TOWa ofo Bornrwing ounries pnourements prans alamoun disbsmnts Macedonia.FYR ......... ............... 3 t 3 0 M adagascar ,. .,,,,,,,,,,,,.,.. 2S 1 26 0.16 Ma lawi ................................ ZS 1 27 0.17 Malaysia .............................. 1IS 27 142 0.89 Matdives .............................. I - I * Mali ....... .21 t 21 0.13 Mau rittnna 8 7 15 0.09 mautius .................. 1 4 - Mexico ............................... 761 32 792 4.9 Moldova .............................. 7 t 7 Monotia -------------------..--------- t t t e Morocco ------------- 112 2 114 0.72 M ozoe . ....... ......b... . ......... 4 I Is 4o.n Myanm .............................. 1 5 6 Nepal ................................. a 2 20 0.1 Nicarap ...u............ 7 1 7 Nier ....................r 10 t 10 0096 N igcria ........................g ea....... 179 156 33S 2.10 Oman ................................. 2 2 3 Pakistan ............................... 248 39 287 110 Papua New Guinea . .16 t 16 0.10 Paraguay .......S.. ........ 5 3 8 0.05 Per ..................................f t 9 9 0.06 Philippine s.229 11 240 1SO Polard ................................2 9 56 85 0S53 Romania ............................... 1 15 16 0.10 Russia ................................ 4 125 I29 0.81 Rwanda .......-.11 - -t tl 0.07 Sio Tom6 and Principe ......... .......... 3 - 3 Senegal .---------------------25 11 35 0.22 SeycheDles .............. ........ t - t SierraLeone ............. ,,,..3 - 3 Sknoak Rep ........... - 2 2 So a ..........................._.6 21 7 L 17 Solomon dands ,,,_------,-,-,,,, I 1 2 SriLanka ..-----------------------5 9 59 037 SLTncia ......... ............ t 2 2 St Vincent and the Grenadines t t t Sudan .......... 7 1 9 0.05 Tanzania ........ . 25 4 29 0.18 Thaland . --------------- 92 56 148 0.93 Tog .3 1 4 Tonga .t - t Trnidad and Tobago .2 16 17 0.11 Tunisia .64 7 70 0.44 Uganda . 30 1 30 0.19 Ukraic .- 30 30 0.19 Uruguay .------------------- 23 11. 34 012 Vanuata .t - t 0 Venezuca .25 55 80 0.50 WesternSamoa ............. ... 4 - 4 Yemen. Republic of ...................... 21 1 22 0.13 Zaire .............. 8 6 14 0.09 Zambia .12 5 18 0.11 Zimbabw .11 24 35 0.22 Tot.. 7.201 -2066 9.267 58 -Zero. t less than S0.5 milLion. * less than 0.05 pent. No. Disbursements for debt reduction and nt advance disbursements are exduded. Details may not add to totals because of munding. a. Refers to the share of all IBRD and IDA payments for fiscal 1994 (excluding disbursements for debt reduction). which totaled 515.979 milion. 60 World Bank Operations: Fiscal Year 1994 Table 4-4. IBRD and IDA Payments to Supplying Countries for Foreign Procurement (amounts in millions or US dollars) I BRO cumulative IDA cumulative io June 30. 1994 IBRD rascl 1994 to June 30. 19J94 IDA fiscal 1994 Supplying country Amwunt % Amount % Aumont % Amount 91 Afghanistan........... 2 * Albania ............* Algeria...... ........ 25 I Ii I 2 0.06 Angoa ...... ........ 9 * * j t Antigua and Barbuda .......* Argentina............ 749 0.78 1s 0.28 92) 0.26 1 1 0.31 Australia ............1.023 1.06 921 1.69 389 1.11 47 1.31 Austria.............1,249 1.30 117 2.14 214 0.61 25 0.722 Bahamas. The.......... 79 0.08 1' 8 * Bahrain............. 66 0.07 2 * 125 0.36 8 0.21 Bangladesh ........... 13 * * 39 0.11 6 0.16 Barbados ............ 11 2 * 4 * Belarus ............1t * * Belgium.............1.435 1.49 45 0.82 92)9 2.65 70 1.9 Belize..............1 * -I 6 -* Benin ............. 3 * -* 13 * 2 0.05 Bhutan ............. t I * Bolivia.24 * 3 S BoLswana............ 6 * 7 * Brazil..............1.680 1174 87 1.59 310 0.89 64 1.81 Bulgaria............. 13 * 9 0-17 S 7 0.18 Burkina Faso .......... I * 7 I Burnmdi ............1 to * 1 * Cambodia ........... I * -t * - Cameroon...............* 20 0.06 3 0.07 Canada............-2,2031 2.29 115 2.11 646 t.85 69 1.95 Cape Verde........... t * * * Central African Republic .2........ 2 - Chad.................... I Chile.............. 357 0-37 9 0.17 30 0.09 3 0.08 China.-------------1,190 1.24 108 1.88 875 2.50 171 4.80 Colombia ............ 208 0.22 5 0.09 14 I Comoros ................... Congo.6------1----------- Costa Rica ........... 31 5 0-10 11 I CMed'Ivoire .......... 35 * 186 0353 41 1.16 Croatia............. 13 * 8 0414 5 * 3 0.09 Cyprus.------------- 24 * 2 * 30 0.09 19 0.54 Czech Republic ......... 34 ¶ 25 0.45 3 * 3 0.07 Czechoslovakiea......... 25 * -3 -* Denmark ............ 633 0.66 59 1.08 271 0.77 37 1.04 Djibouti ................ 23 0.07 1 Dominica.3..................* Dominican Republic....... .6 ** 7 * 2 0.06 Ecuador............. 113 0.12 1 I * Egypt, Arab Republic of ..... 47 * I * 28 0.08 5 0.14 El Salvador ........... 18 I * 3 t* EquatorialGuinea .......... 5 * 5 0.14 Estonia...... I * I 1 Ethiopia ............1 I * I 8 0.23 Disbuusemenis 61 IBRD cumulativc IDA cumulative to June 30. 1994 IBRD rfsl 1994 to June 30. 1994 IDA ftscal 1994 Supplying country Amount % Amouut % Amount % Amount % Fiji .......................... t * - I * - Finland ...................... 399 0.41 36 0.66 115 0.33 14 0.41 France ........................ 6,773 7.03 400 7.34 3r529 10.09 386 10.86 Gabon ............ 14 t 10* I * Gambia,The -................... 3 a - S t . t Gennany ..... . .10.. 93 11.31 568 10.42 3.190 9.12 197 5.55 Ghana ........................ 10 * I 6 * 2 0.07 Greece ...................... 182 0.19 7 0.12 64 0.18 8 0.21 .Grenada ....................... I * - 4 * * Guatemala ..................... 17 * * 12 I S Guinea ........................ 3 * - 1 t * Guinca-Bissau a---------------- * 5 * 3 0.08 Guyana ..................... * * I Haiti .......................... 6 * 4 S t Honduras ..................... 12 I * 2 * t* Hungary .--------------------- 254 0.26 59 1.08 23 0.07 2 0.07 Iceland ........................ 8 * t I t India .......................... 327 0.34 28 O5 624 1.78 105 2.95 Indonesia ..................... 145 0.15 10 0.18 71 0.20 27 0.75 Iran, Islamic Republic of .------- 144 0.15 t 184 0.53 7 0.21 Iraq ..............I........... 459 0.48 t * 30 0.08 - Ireland ..2...................... 15 0.13 5 - 0.08 77 0.22 14 038 Israel ......................... 230 024 16 0.29 87 0.25 10 0.28 Italy .- --- 5,348-. 5.55 227 4.15 1,529 4.37 128 3.61 Jamaica ....................... 16 * t * t Japan ......................... 13,473 13.99 464 8.50 3,887 11.11 228 6.40 Jordan ........................ 49 0.05 t * 129 0.37 3 0.09 Kazakhstan .................... - * - * t * t Kenya ... ........ 28- ....... 22t 220 0.63 50 1.42 Kiribati. ................ . - f * . Korea, Rcpublic of ............. 1341 1.39 287 5.27 604 1.73 56 1.57 Kuwait ........................ 2P- 026 29 0.54 205 0.58 42 1.18 Kyrgyz ;epublic:t * ......... . * - Lao People's D1m. Rep .12 * 12 0.21 - t * Latvia ........................ 2 2 t t * Lebanon . .74 0.08 6 0.10 21 0.06 t * Lesotho . . . a .... a .. .. t t t Liberia . ....................... 26 - 21 0.06 2 0.06 Libya ......................... 92 0.10 t 7 5*- Lithuania .-2 * 2 * - 2 2 t . Luxembourg -----------------.. 70 0.07 t 32 0.09 1 * Macedonia, FYR ............... - t t Madagascar ................... 8 * - 2 * 1 Malawi ........................ 2 * I 10 * 1 * Malaysia ...................... 321 0.33 10 0.18 215 0.61 17 0.48 Maldives ...................... I * - * t Mali .......................... t Malta 20 * 20 0.36 t - Mauritania ...............-..... 14 * 7 0.19 (coninued) 62 World Bank Operallons: FLscal Year 1994 Table 44 (continued) -BRD cumulative IDA cumulativc to June 30, 1994 IBRD fiscal 1994 to June 30, 1994 IDA fiscal 1994 Supplying country Amount % Amount S6 Amount 91 Amount % Maunritius ...... I * t 13 * I 4 Mexico ...................... 493 031 29 0.53 94 0.27 3 0.07 Moldova ...................... t* * -* Mongolia .................... t - - Morocco ..................... 160 0.17 1 * 48 0.14 1 Mozambique .................. 4 * - 7 I 1 Myannmr .................... 23 * 2 * 15 3 O.Og Namibia ..................... t - * I t Nepal ...................... I - 3 * 2 0.05 Ncthrlads ..................1 1.91 120 2.20 886 2.53 107 3.01 New Zealand ................. 150 0.16 9 0.17 89 0.25 5 0.13 Nicaragua .................... 9 * I 6 * Niger ........................ 3 * t * 10 * Nigeria .................... 388 0.40 74 1.36 300 0.86 82 2.30 Norway ...................... 309 0.32 57 1.04 122 0.35 21 0.60 Orman .. --.-- 37 I * 14 I * Pakistan ..................... 109 0.11 12 0.21 164 0.47 27 0.77 Panama ...................... 370 U38 8 0.15 48 0.14 21 0.59 Papua New Guinea ......3 * - * * Paraguay ..................... 112 0412 t t 7 * 3 0.09 Pru ........................ 124 013 7 0.14 16 * 2 Philippines ................... 69 0.07 3 78 0.22 8 0.23 Poland ...................... 1 64 0.17 54 0.98 41 0.12 2 0.07 Portugal ..................... 53 0.05 6 0.10 212 0.61 29 0.81 Qar ...................... 123 0.13 t 13 * 4 0.10 Roman ..................... 252 0.26 12 0.22 64 0.18 3 0.OS Russia ...................... 150 0.16 120 2.20 8 * 5 0.13 Rwanda ...................... 3 * - 1 t * Sio Tomn and Principe ........ - * Saudi Arabia ................. 557 0.58 98 1.79 216 0.62 9 0.24 Senegal ...................... 23 * 2 68 0.20 9 025 Seychelles ................... - t * t * - Sierra Leone . ................. 4 - * 2 - * Singapore .------------------- 909 0.94 73 1.34 621 1.78 64 1.80 SlovakRepublic ............... * 2 I * Slovenia ..................... 28 * 20 0.37 t * t * Solomon Islands ......... . I * I * I I Somalia ............. .... I * - * 2 - South Africa . 385 0A40 38 0.70 664 1.90 154 4.34 Spain ...................... 1,075 1.12 65 1.18 228 0.65 34 0.95 Sri Lanka .................... 21 * 0.45 16 I 1 St. KittsandNevis . t * - * I * - * St. Lucia ................... I * t * 4 I * SL Vincent and the Grenadines . t * - 0 4 * t * Sudan ...................... 5 * t * 12 * 1 Suriname .------------------- I - 2 * t Swaziand .---- ... .. ... fl 8 * 22 0.06 5 0.15 Sweden ...................... 1,520 1.58 63 1.16 396 1.13 35 0.99 Switzerland .................. 4,051 4.21 194 3.55 942 2.69 54 1.52 Syrian Arab Republic .....24 ..t * 14 * 2 4 Dlsbunemenis 63 IBRD cumulative IDA cumulative to June 30. 1994 IBRD rfsa 1994 to June 30. 1994 IDA rfical 1994 Supplying country Amorn.t % Amount 56 Amount 56 Amount % Tanzania ,.... 7 * t * 20 0.06 3 0.09 Thailand . ............ 141 0.15 4 0.07 318 0.91 53 1.48 Togo ................ 29 * I * 21 0.06 t Tonga ...... .* - * t * * Trinidad and Tobago 19 I* 18 0.05 15 0.41 Tunisia ........... 0.09 4 0.07 32 0.09 3 0.08 Turkey .............. 218 0.23 43 0.79 42 0.12 9 0.25 Turkotenistan ........ - * I I a Uganda . .--------3 * t- * 4 I * Ukraine .. ,.. 29 28 0.51 2 2 2 0.05 United Arab Emirates 536 0.56 2 * 333 0.95 23 0.64 United Kingdom6 ..... 7.380 7.66 523 9.59 4,797 13.71 438 12.34 United States .... 19,381 20.12 751 13.77 3,609 10.32 219 6.17 Uruguay. .----------87 0.09 11 0.19 6 * * Uzbekistan ------- ** 5 5 0.14 Vanuatu . ............ * * t* Venezuela ........... 465 0.48 18 0.33 167 0.48 37 1.05 VietNam . . . 42 * I * 40 0.11 16 0.45 Western Samoa .2. * _ * t * * Yemen. Republic of - t * t * 207 0.59 t 3 Yugoslavia, SFR o",,, 854 0.89 5 0.10 16 0.48 4 0.12 Zaire ,,,.. ..... 6 . *t 36 0410 6 0.16 Zambia,.. .29 1 1.07 0.30. - 043 Zimbabwe ...........,34 t * 85 0.24 24 0.67 -Other ......., ,, 867 0.90 86 1.57 18_2 0.52 2 147 Total ............, 96,310 100 5,457 100 34.984 100 3.553 100 - Zero. t than SO5 minlion. * less than 0.05 percent NoT Disbursements for debt reduction and net advance disbursements are excluded. Details mav not add to totas becausc of rounding. a. Figur rePresent supply fiVn the fowoCr C2Chosl0vakia prior to January 1. 1993. b. United Kingdom indudes Hong Kong. c. Fgures represent supply from SFR Yugoslavia in FY1994 for IBRDIIDA as follows: Bosnia-cHrzegovina S4S2 million: Fedeal Republic of Yugoslavia (Serbia and Montenegm) S5.5 milLion. borrowing country. While most foreign pro- suppliers as expenditures are incurred. Be- curement comes from suppliers in developed cause balances in these accounts cannot be at- member countries, suppliers from developing tnbuted to any specific supplying country until countries have increasingly been effective in expenditures have been reported to the Bank. winning contract awards. Through the end of these are shown as a separate category. fiscal 1989. 15 percent of foreign procurement Table 4-2 provides details for foreign dis- was awarded to developing country suppliers: bursements by OECD and non-OECD coun- in fiscal 1994. developing country suppliers tries for the IBRD and IDA separately. share was 32 percent of total foreign disburse- Table 4-3 shows disbursements made in fis- ments. cal 1994 by the IBRD and IDA for local and Table 4-1 shows consolidated foreign and lo- foreign procurement from all active borrowing cal disbursements for the IBRD and IDA countries and disbursements madc for goods. through the end of fiscal 1989 and for each of works. and services procured from them by the next five fiscal years to the end of fiscal other Bank borrowers for projects funded by 1994. Advance disbursements consist of pay- the Bank. ments made into special accounts of borrow- Table 4-4 shows the amounts disbursed from ers. from which funds are paid to specific the IBRD and IDA separately for foreign pro- 64 Wodd Bank Operations: Fiscal Year 1994 Table 4-5. IBRD and WDA Payments to Supplying Countries for Foreign Procurement, by Description of Geoads, Fiscal 1994 (maounts in millions or US dollars) All othier Total Equipment aivi works Consultants goods disburmments: Supplying country Amount SE Amount Sb Amount S Amnount % Amount Sb ,Afghanistan.........* t t * Albanria.t......... t f Algeria.3.............. 3 3 Angola.t...............* t Antigua andfBarbuda f * __ * _ t Argentina ........ 20 0.27 5 0.90 1 0.10 I 0.22) 26 0.29 Australia.........117 1.59 1 0.26 20 2.59 1 0.29 139 1.54 Austria . ........1.34 1.82) 1 0.14 6 0.827 2 0.47 142 1.58 Bahiamas, The . t...t.... _ S * Bahrain ......... 5 0.07 1 0.21 t * 3 0394 9 0.10 Bangladesh........ 50.06 t t * 1 0.30 6 0.07 Barbados ..... .... 2 0.31 t * I * 2 Bclarus...............* * Belgiumn.8....... 9 1.22 5 0.90 13 1273 7 2.05 115 1.27 Benin........... 2 0.28 t * _ Bhutan................. j * Bolivia .1.......... S I Botswana.2............*2 2 * Brazil..........139 1.9 8 1.4 3 0.36 1 0-39 151 1.68 Bulgaria ......... 15 0.2 - * 16 0.17 Burkina Faso....... I I _9 1 * _ Burundi ............S f * 4 Cameroon.3-------*--- 3 S 3 Canada..........106 1.44 6 1.02 68 8.82- 5 1.52 184 2.05 Cape Verde.-----------*t * Central Afirican Republic . * _ *_ Chile........... 10 0413 -2 0.31 1 * 12 0.13 China.--164 2.24 92 16.13 4 0.54 13 3.63 273 3.03 Colombia.4 0.05 1 0418 1 0.07 I 0.26 6 0.0 Congo 2.........f..... * 9 * Costa Rica ...........* 5 0.64 1 6 0.07 C6te d'Ivoir ....... 27 0.37 12 2.17 1 0.1t7 t 0.06 4 1 0.46 Croatia .2........ 1 8 1.47 - I _ * 1 042.I Cyprus.------ 21 028 - 1 0410 1 21 0.24 Czech Republic . 2-- 77 0.37 - 5 t 0412 27 0.30 Denmark......... 63 0.86. 15 2.68 17 2.22- 1 0.20 96 1.06 Djibouti .............. 1 0.26 1 Doainica ........... " _ 5 Dominican Republic 2 __ * f S _ Ecuador................ Egypt, Arab Republicof 3 * 2 0.36 1 0.08 I 0.05 6 0.06. El Salvador .1............ Ia Equatorial Guinea .... 5 0.07 -*S _ * 5 0.05 Estonia................1I* Ethiopia ......... 8 0.11 - * 0.05 1 8 0.09 Finland ......... 47 0.65 - * 2 0.28 1 0.30 50 0.56 France..........628 8.58 66 11.46 85 11.13 7 2.027 786 8.72 Gabon.................jI* Gambia, The ....... - * t * f * Germany.........657 8.97 45 7.88 44 5.74 20 5.68 766 8.50 Ghana......... 2 * I 0.08 - * 3 Disbursemenis 66 All other TotlW Equipment Civil works Consultants goods disbusments Supplying country Amount 96 Amount % Amount % Amount 96 Amount % Greece .................. 11 0.15 3 0.53 t * f * 14 0.16 Guatem ala .............. 2 - * 2 * Guina ................. - * t* Guinea-Bissau .......... 3 - * * * 3 Guya ................ t I - * H a tti ................. I - * t * 1 * Honduras .............. I - * t * * Hungary ............... 56 0.76 5 0.91 1 0.07 - * 61 0.68 Iceland ................. - - t - t * lndia ................. 103 1.41 10 1.81 6 0.83 13 3.78 133 1.48 Indonesia ............... 29 0.40 - t 7 1.93 36 0.40 a, Islsamic Republic of . 7 0.10 - 0 * - * 7 0.08 fIaq .----- - t * -- - * t * Ireland ................. 8 0.11 t 0.08 9 1.13 1 0.32 18 0.20 srael ................. 21 0.28 - * 5 0.62 t 0.13 26 0.29 Italy .................. 259 3.53 81 14.09 8 1.03 8 220 355 3.94 Jamaica ................ - - t * t * t * Japan ................. 632 8.63 25 4.42 18 2.30 17 4.73 691 7.67 Jordan ................. 3 - t * * 3 * Kazakhstan . ............ t * t Kenya .---------------- 15 0.21 t * 5 0.65 30 8356 50 056 Kin-bati . .......... t * - - * - * t Korea, Republic of ...... 321 4.38 13 2.30 6 0.78 3 0.88 343 3.81 Kuwait ----------------- 71 0.98 - * - * - * 71 0.79 Kyrgyt Republic ........ t * - * * * t * Lao Pcoples Dcma.Rep.. 12 0.16 - S t * - 12 0.13 Latva ................. 2 - * * 2 * Lebanon ............... t * 4 0.63 2 0.28 t * 6 0.07 Lesotho ................ * - t * t * f Liberia ................. I 1 0.19- * - * 2 * Lbya ............... t * - * - * - * t * Lithuania . .............. * * _ _ * Luxembourg ............ I - 1 0.13 2 * 2 * Macedonia, FYR ........ t * - * - * - -* t * Madagascar.. t - * t * * 1 * Malawi ................. I * t 0t11 I Malaysia ............... 23 032 1 0.18 t * 2 0.56 27 0.30 Mali ................. * * * t * Malta ................. 20 0.27 - * - * - * 20 22 Mauritania .............. 7 0.09 - * - * - * 7 0.ft Maunitius ............... t t- * 0.06 t 0.09 1 * Mexico ................. 29 0.40 t * t 2 0.48 32 0.35 Moldova ................ t - * t Mongolia ................ - * * * t Morocco ............... I * - 011 * 2 * Mozambique ............ 1. t t - * Myanmar ............... 5 0.07 - * t * - * 5 0.06 Namibia ................ t * - * t* * Nepal .................. 2 *2 (continued) 66 World Bank Operaffons: Flscal Year 1994 Table 4-5 (continued) All other Total Equipment Civi works Consultants goods disbarsements Supplying country Amount % Amount 9G Amount % Amount Sf Amount % Netherlands ............ -186 2.54 10 1.80 27 3.46 5 1.38 227 2.52 New Zealand ........... 9 0.12 1 0.25 4 0.48 t * 14 0.16 Nicaragua .............. I * * - * I * Niger .................. t * Nigeria ................. 156 2.13 - * t * 156 1.73 Norway ................ 67 0.91 - * 6 0.82 5 1.44 78 0.87 Oman .................. t - * Pakistan ................ 18 0.25 18 3.21 2 0.22 t 0.12 39 0.43 Panama ................ 29 0.40 t * - * - * 29 0.32 Papua New Guinea *...... t * - * t ' Paraguay ............... 2 * 1 0.26 t * - ' 3 * Peru .................. 7 0.10 - * t * 2 0.49 9 0.10 Philippines ............. I 2 0.41 6 0.74 2 0.44 11 0.12 Poland ................. 55 Q75 t 1 0.09 t 0.06 56 0.62 Portugal ................ 16 0.22 1 0.11 15 2.01 2 0.71 34 0.38 Qatar .................. t * 4 0.64 - * - * 4 * Romania ............... 12 0.17 3 0.44 t * t * 15 0.17 Russia ................. 124 1.70 t * 1 0.07 t * 125 1.38 Rwanda ................ t . t * t * t * Saudi Arabia ............ 104 1.42 1 0.13 - * 2 0.53 106 1.18 Senegal ................ 9 0.13 1 0.20 t I _ * 11 0.12 Singapore .............. 119 1.62 4 0.78 7 0.93 7 1.95 137 1.52 SlovakRepublic .-2 -- -- * - * t * 2 * Slovenia ..... - ------- -- 18 0.24 2 0.43 t t t 0.10 21 0.23 SolomonIslands ........ I * * * t I South Africa ............ 155 2.12 t * 9 1.22 27 7.79 19_ 2?13 Spain ............. 73 0.99 20 3.49 5 0.69 t 0.10 98 1.09 Sri Lanka .............. 2 _ t 0.05 7 2.00 9 010 SL Lucia ............... t 1 0.24 * t * 2 * St. Vincent and the Grenadines ........... - t * * - * t Sudan .................. 1 * t *t Suriname ............... -* t t Swaziland .............. 5 0.06 - ' t * 1 -0.25 6 0.06 Sweden ................ 84 1.14 4 0.76 4 0.53 6 1.75 98 1.09 Switzerland ............. 216 2.95 9 1.51 16 2.14 7 2.06 248 2.75 Syrian Arab Repubic .... 2 * - * t t * 2 Tanzania ............... 3 t t* 1 0.25 4 * Thailand ............... 54 0.74 2 0.28 tt t 0.42 56 0.63 Togo -........ I - * _ _ 1 * Trinidad and Tobago .... 15 0.21 t t * t * 16 0.17 Tunisia ................. 6 0.08 - * t 0.06 t * 7 0.07 Turkey ................. 50 0.68 1 0.12 1 0.08 1 0.21 52 0.58 Turkmcnistan ........... I Uganda ................ * * Ukraine ................ 29 0.39 - * - * 1 032 30 0.33 United Arab Emirates.... 14 0.19 3 0.59 - * 7 1.91 24 0.27 United Kingdomt ....... 774 10.57 23 3.94 112 14.59 53 15.17 961 10.67 United States ........... 775 10.59 28 4.82 149 19.43 19 5.45 971 10.77 Uruguay ............... 11 0.16 - * * - * 11 0.13 Uzbekistan ............. 5 0.07 - * * - * 5 0.06 Disbursements 67 Table 4-5 (continuedJ All othcr Total Equipment Civil works Consultants goods disbursements Supplying country Amount % Amount % Amount 96 Amount % Amount % Venezuela ............... 55 0.76 - t * - * 55 0.62 Viet Nam ............... 1 6 0.23 t 0.06 - * - * 17 0.19 Ycmen, Republic of ...... t * t 0.08 - t * I * Yugoslavia, SFRofb .... I e 9 1.50 - __ * 10 0.11 Zaire .................. 6 0.08 - t * - * 6 0.06 Zambia ................. 4 0.06 t e t * t 0.13 5 0.06 Zimbabwe .21 0.29 - 1 0.08 2 0.57 24 0.26 -Other ................ 35 0.48 1 0.24 60 7.76 41 11.86 138 1.53 Total .............. 7,319 100 573 100 767 100 350 100 9,009 100 - Zcro. t less than 50.5 mnillion. ' less than 0.05 percenL NoTE: Disbursements for debt reduction and net advance disbursements are excluded. Detauls may not add to totas because of rounding. a. United Kingdom includes Hong Kong. b. Figtrns represent supply from SFR Yugoslavia in FY94 for IBRDIIDA as follows: Bosiia-Herzegovina S4.2 million: Federal Republic of Yugoslavia (Serbia and Montenegro) SS5. million. Tabk 4-6. IBRD and IDA Foreign Disbursements, by Description of Goods, for Investment Lending, Fiscal 1992-4 1992 1993 1994 Item OECD Non-OECD Total OECD Non-OECD Total OECD Non-OECD Total milrions of US dollars Investment lending Civil works 339 154 493 337 176 513 317 209 526 Consultants 577 72 649 612 105 717 6.5 125 740 Goods 2,665 456 3,121 2,888 597 3,485 2,816 865 3,681 AU other 81 50 132 246 142 388 59 70 128 Total 3,662 732 4,394 4,083 1,020 5,103 3,807 1.268 5.075 percents Civilworks .69 31 11 66 34 10 60 40 10 Consultants 89 11 15 85 15 14 83 17 15 Goods 85 15 71 83 17 68 77 23 73 All other 61 38 3 63 37 8 46 55 3 Total 83 17 100 80 20 i1o 75 25 100 NoTEr Disbunemnents for debt reduction and net advance disbursements are excluded. Disbursements for structural adjust- ment loans, sector adjushment loans. and hybrids (loans that support policy and institutional reforms in a specific sector by fmancing both a policy component disbursed against imports and an investmnt component) are also cxduded. OECD amounts are based on current OECD membership. excluding Mexico. which became a member in May 1994. All of he percenuagcs are bused on the dollramounts shown underthe total disbursements section. Thesc percentages show both the breakdown between OECD and non-OECD countries for individual goods categories and the share of each goods category compared with total disbursements. curement of goods and services from member bursed are compared with respect to significant countries in fiscal 1994 and cumulatively categories of goods procured from foreign sup- through fiscal 1994. pliers. The extent to which OECD and non- Table 4-5 shows the proportion of foreign OECD countries participated in supplying disbursements from the IBRD and IDA for spe- these major categories of goods in each of the cific categories of goods and services provided past three fiscal years is also compared. by member countries in fiscal 1994. In all of these tables IBRD figures exclude Table 4-6 provides a summary listing of the disbursements for loans to the International Fi- amounts paid to OECD and non-OECD coun- nance Corporation and 'B" loans. IDA figures try suppliers in each fiscal year from 1992 to include Special Fund and Special Facility for 1994 under investment projects. Amounts dis- sub-Saharan Africa credits. Disbursements for 68 Woad Bank Operalans: Fiscal Year 1994 Project Preparation Facility advances are ex- a major challenge. There is the need to restore cluded for both the IBRD and IDA. Minor ad- efficiency and commitment wiLhin the civil ser- justments have been made betwecn the foreign vice, which has been eroded over time by the and local disbursements for fiscal 1993 as re- politicization of career management and de- flected in Tables 4-1. 4-2, 44, and 4-6. clining remuneration in real terms. This dcte- roration in public administration constitutes a Technical Assistance major obstacle to launching needed policy re- Technical assistance activities financed fonns, restoring good govemance, and improv- through IBRD loans and IDA credits continue ing the delivery of public services. to represent a significant segment of total Bank The Bank is paying increased attention to the lending. A number of reasons underlie the in- strategic management of technical assistance crease in technical assistance activity in recent for institutional development through the tar- years. geting of public sector management and insti- * First, an increase in technical assistance tutional development issues in economic and for institutional development is an appropriate sector work and country-stratcgy work. A by- complementary response to efforts to deepen product of this increased upstream effort is an policy reforn and retool the public sector for enhanced policy dialogue with governments on its new roles. It may also reflect the current systemic institutional issues and countrywide phase of Bank assistance after key macr4 pol- management of technical assistance. The result icy changes have been put in place. could be reform-based adjustment operations. * Second, there has been a shift in lending to freestanding technical assistance, and im- human resources development and environ- proved institutional development interventions mentally sustainable development and away in projects. Overall, although there has been from adjustment loans. Historically. these sec- some progress in this area and some best prac- tors have had the highest percentage of tech- tices are emerging, more time is required to nical assistance components as a share of total build up skills in macro-institutional analysis lending-well above 10 percent. and to integrate public sector management is- - Third, there has been a general decline in sues into economic and sector work and the grant funding for technical assistance from the country dialogue. In a number of countries. United Nations Development Programme these issues are highly sensitive and require (UNDP) and bilateral donors, particularly to time and persistence to build up borrower own- some of the Bank's major borrowers who are ership and commitment at the highest levels. major recipients of technical assistance com- Use of local consultants. The Bank encour- ponents. ages borrowers to employ local consultants ei- Loan-financed technical assistance (free- ther alone or in combination with foreign finns. standing and components) by the Bank in cal- To some extent, however. local consultants endar year 1993 amounted to $2.2 billion. Of have been handicapped by a lack of marketing this amount, $1.9 billion. or 85 percent of the expertise. The Bank is currently financing the total, funded components of projects. while preparation of a "how-to" manual that deals $300 million was accounted for by twenty-two with consultant operations and mark-eting. freestanding technical assistance projects. Ten When finished, it will be the focus of discussion countries (led by Brazil, China, Indonesia, and in one-week seminars in preselected borrowing Mexico) accounted for more than half of all member countries. The Bank will follow up the technical assistance financed through Bank seminars by monitoring progress made by local lending. These large technical assistance bor- firms and by facilitating their association with rowers share common characteristics: They firns from industrialized countries. are long-standing, mature borrowers and have In addition. during the past year. workshops the capacity to work with the Bank in deter- were held at the Bank's headquarters for con- mining their technical assistance needs. In ad- sultant associations from Africa. Asia. and dition, because most receive inconsequential Latin America to review ways and means to amounts of technical assistance grants from enhance participation of their member firms. bilateral and multilateral donors, the technical The increased emphasis the Bank is giving to assistance provided by the Bank is highly val- the issue of local consultant use is, in part. a ued. response to feedback from borrowers that the Key issues of technical assistance. With the development of greater institutional capability drive toward open and competitive markets of is essential to project success-and that this hitherto centralized economies, a new set of includes making more use. and improving the issues is emerging. In many countries, down- capabilities, of local consultants. sizing the large bureaucracies that have been Institutrional Developmcnt Fund (IDF). The set up to manage state-led economic policies is IDF, which became effective on July 1. 1992. CofInanclrc 69 was designed to fill gaps in the Bank's set of vances have been made to sub-Saharan African instruments for financing technical assistancc countries. for institutional development work associated Tuie Bank aned tnwe UNDP. The Bank inter- with policy reform, country economic manage- acts with the UNDP through many programs ment programs, poverty-reduction programs, and at many levels. During calendar year 1993, public sector management, private sector de- the Bank was the executing agency for 132 velopment, and environment management. UNDP projects having a total value of $303 The IDF provides a quick-response instru- million. This reflects a decline from 1992, when ment for funding small, action-oriented propos- the Bank was the executing agency for 175 als identified during (and closely linked to) the projects with a total value of $348 million. This Bank's economic and sector work and policy trend is expected to continue as the UNDP's dialogue in countries where institutional devel- total resources continue to decline and as the opment is a significant country-assistance ob- UNDP accelerates the shift from agency exe- jective. There is a $500.000 ceiling on cution to national execution and from project individual grants. All borrowing member coun- to program financing. At present. the loss of tries of the Bank are eligible to apply. funding by the UNDP has been more than ad- The introduction of the IDF was partially equately compensated for by funding from driven by the expectation of a pent-up demand other sources, notably Japan's Policy and Hu- for a grant facility to address capacity-building man Resources Development Fund. In the long requirements in many countries. This expecta- term, however, the decline of untied grant fund tion has not yet fully materialized. Demand for for technical assistance from the UNDP will be IDF resources has been limited partly as a re- felt in many operations. The Bank and the sult of its newness and also because of the UNDP are reviewing the implications of this availability of resources from competing trust trend. funds. In calendar year 1993, fifty-three grants At the same time, many borrowers. particu- were approved to forty-three countries for a larly in Latin America, are using the services of total amount of $14.3 million. Some delays in the UNDP to implemcnt technical assistance implementation have occurred, inevitably financed by the Bank. This is done through two caused by the introduction of a new program mechanisms: first, a cost-sharing arrangement that required putting in place special proce- under which proceeds from Bank loans are dures and familiarizing member governments comingled with UNDP funds to create unified and staff with the new grant facility. UNDP projects. executed either by the UNDP Notwithstanding the IDFs modest start-up. or by others; second. a management-service the use of IDF funds has permitted the Bank to agreement-a form of contractual relationship help initiate difficult institutional changes. such between the Bank's borrower and the Office of as reform of economic ministries in Albania. Project Services of the UNDP for the imple- disseminate the experience of privatization in mentation of Bank-financed technical assis- Poland. and enable timely work to begin on a tance. This arrangement is particularly helpful privatization strategy for Belarus. in exnediting implementation by taking advan- Project Prepararion Facility (PPF). The PPF taje of the UNDP's "privileges and immuni- was established in 1975 when the executive di- tis'" to process important transactions with rectors authorized the Bank's president to ap- minimum delay. prove project preparation advances to an The Bank and the UNDP also collaborate in aggregate amount of $5 million. At the time. it the field of aid coordination .o ensure that tech- was expected that the typical tasks would cost nical assistance issues receive adequate atten- in the range of $50,000- $150.000. This limit was tion at consultative group meetings chaired by subsequently raised in 1978 to $1 million and to the Bank and at roundtables chaired by the $1.5 million in 1986. UNDP. During fiscal 1994, a new ceiling of $2 million per advance was established for all advances Corl2JGficmng except those in connection with loans exceed- The Cofinancing and Financial Advisory ing $200 million; for them, the ceiling was set at Services (CFS) vice presidency continued to $3 million. play a catalytic role in facilitating the flow of At the end of calendar year 1993, 138 PPF financial resources to developing countries by advances had been approved, involving a total undertaking various activities relating to cofi- commitment of $84 million. One hundred one nancing. project financing. and private sector advances. for an amount of $49.6 m-illion. had development. Thcse activities included provid- been made on IDA terms, and thirty-seven ad- ing operational support and technical assis- vances. for an amount of $34.3 million, had tance to the Bank's country departments. been made on IBRD terms. Most of the ad- borrowing member countries. and cofinancing 70 World Bank Operaflans Rscal Yeor 1994 partners such as donor governments, official the United States ($66 million). Total corinanc- development aid agencies, export-credit agen- ing currently expected from multilateral rinan- cies, and international financial markets. cial institutions amounted to $3.4 billion. The In fiscal 1994. the volume of cofinancing an- Inter-American Development Bank. with ticipated in support of Bank-assisted opera- $1,021 million of planned cofinancing. contin- tions was $8.8 billion, down from the $11.6 ued to be the largest multilateral cofinancier. billion mobilized in fiscal 1993 (see Table 4-7). accounting for 30 percent of the total. This reduction was directly related to the de- The power sector attracted the largest clines in IBRD and IDA lending commitments amount of cofinancing with an aggregate of during the year. which fell short of fiscal 1993 $2,100 million (as opposed to $3.116 million in amounts by $2.860 million. fiscal 1993). It was followed by transportation The decline is also the result of economic ($1,929 million, down from $2.107 million in the slowdown in both donor and borrowing coun- previous year): agriculture ($1,106 million); tries. which has contributed to a significant cut telecommunications ($519 million): and the in aid and investment budgets on both the sup- multisector category of lending. which includes ply and the demand sides. The diminishing lending in support of reform programs and of weight of quick-disbursing operations in the reconstruction and rehabilitation programs portfolio of Bank operations, as well as the (S437 million). slow pace of the project cycle arising from the In fiscal 1994, three main activities were car- increased attention to qualitative aspects of in- ried out in CFS to formulate a policy frame- terventions, also played a role. Nonetheless. work to facilitate cofinancing as a main the decline in cofinancing is viewed with con- business tool. They were (a) the undertaking of cern in view of the need for increased financial a Cofinancing Task Force study that focused flows to developing countries. on developing a coherent Bank policy on cori- The cofinancing figures, which represent nancing and identifying other ways the Bank planned cofinancing. not actual commitments can play a catalytic role in facilitating capital by cofinanciers, are captured at the time of the flows to developing countries; (b) the launch- presentation to the executive board of each ing of a special policy study on how to main- IBRD and IDA operation. stream the use of guarantees to mobilize About 51 percent of all Bank-assisted private capital in support of Bank operations. projects and programs were cofinanced in fis- particularly for privatized energy and infra- cal 1994, up from 49 percent in the previous structure investments; and (c) the establish- year. Although official cofinancing declined to ment of Accelerated Cofinancing Facilities $6.3 billion from $8.1 billion in fiscal 1993, it with the Export-Irnport Bank- of Japan. under still accounted for the largest source of antici- which cofinancing will be arranged using an ac- pated cofinancing support, some 72 percent of celerated and streamlined procedure. the total. Export credit and private cofinancing In March 1994, the Cofinancing Task Force fell from $1.2 billion to $591 million and $2.3 issued a report that addressed various cofi- billion to $1.9 billion, respectively. The only nancing-related issues and concerns. The task notable exception to this trend was the support force concluded that cofinancing has been. and mobilized from the private sector in the East will continue to be. an important activity for Asia and Pacific region, which reached $1.3 bil- the Bank as an instrument for maintaining part- lion for the year. compared with $373 million nerships between the Bank and other donors to during fiscal 1993. Investment loans received accompiish joint objectives and to mobilize sig- the largest share of cofinancing support, fol- nificant development resources from official lowed by structural adjustment loans and sec- institutions, private sources, and export-credit tor adjustment loans, agencies. In fiscal 1994, official cofinancing provided The Accelerated Cofinancing Facilities with by Japan's Overseas Economic Cooperation the Export-Import Bank of Japan are designed Fund and the Export-Import Bank of Japan to tap Japan's ever-increasing official develop- continued to account for the largest percentage ment assistance in a more active and system- of bilateral support to Bank-assisted opera- atic manner. In the summer of 1993. the tions. reaching a total of $1,404 million equiv- Japanese authorities announced their Funds alent for thirteen projects approved in fiscal for Development Initiative, consisting of a 1994, or 48 percent of the aggregate amount pledge totaling approximately $120 billion of bilateral cofinancing. Other large bilateral equivalent over the 1993-97 period. The Japa- cofinancing support came from Germany ($196 nese authorities emphasized cofinancing with million equivalent), France ($84 million equiv- the Bank and other international develop- alent). Sweden ($78 million equivalent), the ment institutions as one of the initiative's op- United Kingdom (S71 million equivalent). and erational priorities. The facilities would allow Cofinoncng 71 Table 4-7. World Bank Corinmcing Operations, by Region, Fiscal Years 1993-94 (amounts in millions of US dollars) Projects Source crcofinancine World Bank Total cofinanced Ofricialb Export credit Private contribution Region and year No. Amount No. Amount No. Amount No. Amount IBRD IDA costs Africa 1993 41 1,198.6 41 1,185.1 1 10.0 2 3.5 27.0 1,588.9 3,288.3 1994 35 1,592.9 31 1,538.4 - - 8 54.5 7.7 1,649A 3.698.9 East Asia and Pacific 1993 13 1,113.1 11 583.9 2 156.5 2 372.7 880A 166.9 3,392.2 1994 14 1.948.0 9 5152 1 92.0 7 1,340.8 1,8985 634.9 7,261.8 South Asia 1993 11 2,189.0 11 1,800.0 2 289.0 1 100.0 1.145.0 949.0 8,1822 1994 9 1,584.1 9 1,258.7 1 300.0 1 25.4 474.0 948.7 8,875.7 Europe and Central Asia 1993 18 1,433.5 18 1,433.5 - - - - 2,041.0 100.4 4,351.7 1994 25 1,80.0 22 901A 3 173.6 5 205.0 2,253.3 44.6 4,965.7 Latin America and the Canibbean 1993 27 3.741.6 27 2,008.7 1 699.8 3 1,033.1 2,721.3 248.5 10,65.7 1994 25 1,582.7 22 1,447.5 1 1.9 5 133.3 1.739.5 264.5 5,615.1 Middle East and North Africa 1993 10 1.919.9 8 1,077.4 1 47.8 3 794.7 1,239.0 - 6,132.0 1994 9 781.3 8 649.5 1 23.0 2 108.8 561.0 100.0 3,213.0 Total 1993 120 11,595.6 116 8,088.5 7 1,203.1 11 2,304.0 8,053.7 3,053.7 35,912.0 1994 117 8,768.9 101 6,310.6 7 590.5 28 1,867.8 6.934.0 3,642.1 33,628.8 - Zerio. NoTE: The nmnberof operations shown underdifferent sources add up to a figr exceeding the total numberof cofinanced projects because a number of projects were cofmanced bum morm than one source. Details may not add to totals because or romnding. a. These statistcs are comnpiled from the firncing plans presented at the time of approval ofthe World Bank loans and credits by its board of executive directors. The anounts of official corinancing are. in most cases, finn comniitnents by that stage: Cxpolrt credits and private cofinancing amounts, however. are genecrally only estimates since such colmiancing is xtually aranged as required for project implementation and gets firmed up ayearor two after board approval. 'rhe staisics of private cofinancing in these tables for any fiscal year do not necessarily reflect market placements in that year. b. These figures include cofinancing with untied loas from the Export-Import Bank of Japan. the Bank to mobilize cofinancing resources during fiscal 1994. Of particular importance in more easily and systematically in support of its this context was the adoption of guidelines for priority operations. Similar cofinancing ar- donor financing of civil service compensation, rangements will be pursued with other donor which will be followed in future interventions countries. by donor member countries participating in the The Special Program of Assistance (SPA) for program. Considerable progress was also made sub-Saharan Africa constituted the most im- in implementing previously approved SPA portant aid coordination and cofinancing exer- guidelines for simplifying and harmonizing do- cise promoted by the Africa region. The third nors' procedures for disbursing balance-of- phase of the program was launched in October payments support. 1993, covering the period 1994-96. By the time As in previous years, the donor community of the April 1994 meeting of SPA donors, $6.6 provided substantial support throughout the billion of quick-disbursing balance-of- yearto the Bank through trust funds and other payments assistance had already been pledged. external funding arrangements. Contrary to In addition to mobilizing resources, the key generally decreasing cofinancing trends, this SPA objective of improving the quality of do- type of support is growing. The Policy and Hu- nors' adjustment assistance was also advanced man Resources Development (PHRD) Fund. 72 Wortd Bank Operations: Fiscl Year 1994 financed by Japan. continued to provide a public, tourism in Egypt, and for a variety of broad range of support for various Bank- projects in Pakistan, Sri Lanka, Tanzania, and supported progrms and projects in fiscal 1994. elsewhere. Fund grants totaling $141 million were ap- CFS continues to provide specialized advi- proved for technical assistance for preparing sory services to member countries on debt re- 200 Bank-assisted projects in eighty-seven duction under both the Debt-reduction Facility countries. Continuing support was also pro- for IDA-only Countries and the 'Brady" type vided to the EDI and to finance scholarship of debt and debt-service reduction (DDSR) grants. Among the special programs approved programn. CFS, which administers the Debt- was a grant to support Russia's privatization reduction Facility, provides extensive legal and restructuring program. The first opera- and reconciliation work prior to the structuring tional review of the PHIRD Fund, completed of complex debt-reduction operations. During during fiscal 1994, concluded that the fund was the year4 facility operations were completed in fully meeting the objectives for which it was Uganda and Bolivia, while similar operations established and that it had been particularly ef- were under preparation in Albania, Ethiopia, fective as a source of untied technical assis- Guinea, Mali, Mauritania, Nicaragua, Sio tance for project preparation. The review also Tome and Principe, Sierra Leone, Tanzana, noted that the fund also helped the Bank expe- and Zambia. Under CFS's monitoring of the dite its work on private sector development. DDSR progam, extensive financial and sensi- The Consultant Trust Fund Program-which tivity analyses are performed, and soundings makes available consultancy services in sup- are conducted to assess the receptivity of mar- port of the Bank's operational work in borrow- kets and creditors to proposed DDSR pack- ing member countries-also continued to ages. DDSR operations under preparation grow. Ten new trust funds were established in include those for Bulgaria. the Dominican Re- fiscal 1994, with grants totaling $29 million. public, and Poland. A deal for Brazil was com- The program, which is now supported by pleted in April 1994. twenty-six donors, including four developing CFS consolidated its position as a technical member countries, allocated $52 million in fis- center for privatization and private sector de- cal 1994, enabling the Bank to tap new sources velopment services. The primary focus contin- of expertise and to undertake a wider range of ued to be on providing technical services to the analytical work in priority areas and issues, in- Bank's six operational regions for the design cluding the environment, poverty reduction, and implementation of Bank privatization and health and nutrition, and women in develop- private sector development operations. Spe- ment. cialized support was given to almost fifty Projects in the power, telecommunications, projects covering all aspects of public enter- and transport sectors dominated CFS's prise reform, privatization programs. divesti- project-finance activities in fiscal 1994, with tures. and project financing. Increasing focus substantial increases taking place in the use of was given to private sector participation in in- expanded cofinancing operations (ECOs). The frastructure sectors such as telecommunica- ECO program uses limited Bank guarantees tions. transport. and water supply.' against certain specified risks, such as sover- Several technical assistance programs-in eign risks, to encourage private financing, ob- Argentina. Kazakhstan, Paklistan, Romania, tain or increase access to capital markets, and and Ukraine, for example-were managed di- provide improved terms-especially longer rectly by CFS in support of privatization pro- maturities-for projects in developing coun- grams. Pilot projects were also implemented in tries. In March 1994, the executive board ap- areas such as small-scale privatization. retail proved a $120 million ECO in the syndicated sector privatization, trucking privatization. loan market for China's Yangzhou Power and the development of business programs in a Project, while in May, proposals for a $100 mil- number of the republics of the former Soviet lion ECO to support commercial bond financ- Union. In Pakistan, a team was rapidly de- ing for part of the $1.3 billion Leyte-Luzon ployed to help reinvigorate Pak-istan's privati- Geothermal Power Project in the Philippines zation program, while in Romania an and for an ECO guarantee of up to $50 million innovative assistance effort was mounted to to help finance a telecommunications project in help develop management contracts as one of Jordan were approved. Other ECOs under ac- the country's privatization strategies. This di- tive development include those for projects in rect assistance to client governments was le- Chad. China. Colombia, Lebanon. and Mo- rocco. The CFS vice presidency is also en- gaged in structuring non-ECO project finance D eails or the Bank's activities in private sector devclop- for power in Jamnaica and the Dominican Re- ment during the year may be found bcginning on page 50. Improving Portfolo Management. APcountablilty. and Openness 73 veraged by funds mobilized from bilateral excessive preoccupation with lending targets donors. and volumes to a greater concern with the de- Best practice and comparative studies were velopment results in the field of Bank- also undertaken to disseminate cross-country supported operations. experience, and new instruments and ap- Since the executive directors' approval of proaches were designed to mobilize private fi- the action plan in July 1993, significant nance for privatization and enterprise progress has been made in various areas. They development. Six papers in the 'CFS Discus- include, but are not limited to: sion Papers" series were published, and three * Placing portfolio performance, or the man- studies were launched, one assessing Eastem agement of operations under implementation. Europe's experience with medium-scale and at the center of country-assistance strategies. lage-scale trade sales, another comparing in- Improved guidelines for the formulation of ternational postal reforms, and a third review- country-assistance strategies now mandate ing private sector support for the power sector that the Bank's six operational regions account in several developing countries. for portfolio performance in the design of their Improving Portfolio Management, country-assistance strategies and business plans. Accountability, and Openness * Restnucturing projects and country portfo- In fiscal year 1992, the Task Force on Port- lios. and, as a measure of last resort, canceling folio Management, charged with examining the problem projects- quality of the World Bank's project portfolio * Improving the quality of projects at entry and making recommendations on what might by ensuring country commitment to the project be needed to reverse the decline in the propor- at the outset, .fostering broad-based participa- tion of successful projects over the past de- tion in project design, and monitoring stake- cade, was formed. holder commitment throughout the life of the Its report, transmitted to the Bank's execu- project. tive board in November 1992. found that * Simplifying and modifying the Bank's cofi- although more than three quarters of Bank- nancing practices so as to minimize project assisted projects demonstrated good perfor- complexity that is often associated with cofi- mance during implementation, there had been a nancing. decline in the performance of the portfolio. Ac- * Introducing more rigorous analysis of cording to the report, worsening external and project risk and sensitivity during project prep- country environments contnbuted prominently aration and throughout implementation to the performance decline. Certain aspects of through the issuance of new operational policy Bank practice also contributed to portfolio- and Bank procedures statements, as well as the management problems or were not sufficiently distribution of a handbook on risk and sensi- effective in resolving them. The task force's tivity analysis that provides more extensive fundamental conclusion was that the institution guidance at the sectoral level. needed to modify some of its key institutional * Increasing budgetary resources devoted to values that shape its approach to all facets of its project supervision. including increasing the lending operations. role of field offices in enhancing portfolio man- Early in fiscal 1994, the executive directors agement. endorsed a detailed plan of action designed to * Enhancing the role of the Operations Eval- make the Bank more effective in pursuing its uation Department (OED) and strengthening basic goal of reducing poverty in borrowing the application of evaluation results to the countries. Bank's current operations.? As the core of its action plan. the Bank in- * Providing intensive training to borrowers troduced a country-by-cou.try approach into on the Bank's procurement processes so as to the management of its lending operations. This speed up project implementation. For its part, was designed to allow it to take a strategic view the Bank is preparing standard bidding docu- of its $148 billion portfolio. To complement the ments for some specialized areas of procure- changes it made in its own policies and prac- ment, and a committee was formed to ensure tices. the Bank began collaborating with the au- Bankwide consistency on decisions for the thorities in borrowing countries to review the award of large contracts. perf.ormance of the portfolio in each country and resolve systemic problems: The various initiatives set in motion to im- 2Details or the mask forces report, as wetl as ofihe action prove portfolio performance represented an pi endorsed by the BankCs cxecutive directors. may be .. - . . ..... . . ..founed on pk= "16 Of the World Bank An=al Report important shift in the Bank's business for eikscil 1993. practices-from what was perceived to be an For details. see page 154. 74 World Bank Operations Fiscil Year 1994 Box 4-1. Independent Inspection Panel Is Established An independent Inspection Panel, which will re- tember 1993 to establish the panel in its currcnt ceive and investigate complaints that the Bank form. has not followed its own policies and procedures An investigation by the panel must be re- with respect to the design. appraisal, and/or im- quested by a group of people adversely affected plementation ofa development project that it sup- by a particular Bank project. After the Bank's ports. was established in fiscal 1994. and the executive directors have considered a request for appointment of its chairman and members an- inspection, the Bank will make publicly available nounced in April 1994. the request for inspection. the panel's recommen- The panel complements the Bank's existing dations on the request, and the executive direc- systems for quality control in project preparation tors decision on whether to proceed. The Bank and implementation. As such, it will help the cx- will also make publicly available the panel's re- ecutive board in its governance of the Bankc and port on its investigation and the management's will not affect the president's accountability to response to it. In addition, the panel's annual re- the executive directors for the management of port to the executive board will be published by Bank operations. The panel is part of the Bank's the Bank. policy of improving project implementation, ac- Inspection in the territory of a country will be countability, and openness. The panel will be undertaken with the consent of its government. functionally independent and will report directly Panel mcmbers are appointed on the basis of to the Bank's executive board their professional qualifications, as weEI as their The envirnnment favoring the establishment of developmental knowledge and experience. Mem- an independent inspection function in the Bank bers are nominated by the Bank's president and was fostered by the confluence of two events: the are appointed by the executive directors- The taking of office in September 1991 ofa new World members, other than the chairman will serve ini- Bank president, who undertook to review the tiaily on a partine basis. overall efficiency of Bank operations. and grow- Appointed for a Fve-year term was Ernst- ing criticism of the Bank on the part of nongov- Gunther Broder, wao served as president of the eromental organizations. which reflected a broad European Investment Bank and as German gov- concern by some of the Bankis larger sharehold- ernor of the European Bank for Reconstruction ers that international organizations in general, and Development. Mr. Broder will serve as the and the Bank in particular. should be more open panel's first chairman. in their activities. Alvaro Umanla Quesada. who served as minis- Since 1991. as well, some members of the ter of natural resoures for Costa Rica and has Bank's executive board, in discussions on oper- been a board member of several environmental ations evaluation and on certain problematic and researrch institutes, was appointed for a four- projects, advocated the establishment of an in- year term. spection unit. This resulted in a proposal in Feb- Richard Eter Bissell, who served for several mary 1993 by four members of the Bank's years with the United States Agency for Interna- executive board fcr the establishmcnt of an in- tional Development and who has taught and over- spection unit to evaluate ongoing projects. A seen rescarch at several American universities management proposal was discussed by the ex- and research institutes, was appointed for three ecutive board in July, together with the February years- proposal: at that time, broad agreement was By the end of fiscal 1994, the inspectors had reached on the need for an inspection function. accepted their appointments, effective August 1l Subsequent discussion, including discussion on a The panel is expected to open for business during compromise proposal, led to the decision in Sep- the first week of September. * Enhancing those staff skills required for new perfornance-evaluation system designed good portfolio management Some 122 new to recognize and reward portfolio-performance staff in the seven skills areas identified as being management skills. both critical to the process and in short * Establishing an independent inspection supply-environment, financial sector devel- panel for the review of Bank-supported opment, population and human resources, pri- projects (see Box 4-1). vate sector development, the social sciences of * Opening a Public Information Center. anthropology and sociology, procurement. and which makes available to the public previously public sector management-were recruited restricted operational documents (see Box 4-2). during fiscal year 1994. In July 1993. a commitment was made to un- * Developing a new training curriculum that dertake eighty-four actions during fiscal 1994 to emphasizes portfolio management and related enhance portfolio management. According to a Bank and professional skills and introducing a report made available to the executive board at Improving Portfolio Management. Accountability. and Openness 75 Box 4-2. Public Access to Bank Inflrination Expands The public's access to the World Bank's opera- now a presumption that all these reports will be tional information was significantly expanded in made available to the public. The Bank- will con- fiscal 1994 with the opening at the Bank's head- tinue to consult with the governments concerned quarters in Washington. D.C. of a Public Infor- to insure that confidential information is pro- mnation Center that responds to requests from tected. interested parties for a variety of documents, * Enviromnental assessments. Public availabil- ranging from staff appraisal reports and environ- ity of environmental assessment reports and mental assessments to descriptions of individual analyses-before project appraisal-was ex- projects under preparation. panded to include, with the borroweCr's consent, Although the Bank's relationship of trust with assessment reports and analyses for all IBRD its borrowers rests oa the institution's ability to projects, thus unifying Bank-wide policy on the is- maintain the confidentiality of cerrain types of in- sue. (Availability of environmental assessment formation. in recent years there has been a pre- reports of IDA projects was assured in July 1993.) sumption in favor of disclosure. both outside and * Summarics of cvaluation reports, prepared within the Bank, in the absence of a compelling by the Bank's independent Operations Evalua- reason not to disclose. It was that presumption tion Department, are induded in the expanded that was expanded during the year. list of public documents. Information available at the center and through * Legal opinions prepared for the executive the ofices of the Bank in London, Paris, Tokyo, board, access to which had been restricted under and through other field offices includes: the rule of confidentiality of board proceedings. * A new project information document for all may now be made publiclty available by decision projects under preparation. The document pro- of the board on a case-by-case basis. vides substantially more information on Interested parties can use the Internet com- projects-and at an earlier stage-than has hith- puter network to access project information doc- erto been available. The availability of tbis infor- uments and to view (and order) the tides of al mation will allow interested parties to raise Bank documents available cn request, as well as substantive questions and concerns at an early the abstracts and entire text of selected docu- stage- ments. The project information documients and * Staff appraisal repors-once the project environmental data sheets arc available world- concerned has been approved by the executive wide free of charge. Documents on a country board. The availability of these documents is ex- where there is a Bank field office are provided pected to help increase participation during free of charge at that office. Residents of a coun- project implementation by those affected by the try where there is no Bank field office may obtain project. documents on their own country fec of charge * Country economic and sectorwork (CESW). through the Public Information Center in Wash- Although many CESW reports were being pub- ington, D.C. All other documents carry a stan- lished after govcrnment concurrence, there is dard charge of $15. the end of the past fiscal year. almost all of dressed other sensitive issues in its project those actions-most of them grouped within work that were not specific to the recommen- the areas as descnbed above-had either been dations of the task force on portfolio manage- completed or were at an advanced stage of ment. Following a comprehensive review of completion by June 30. 1994. the Bank's resettlement practices. resettlement The report cautioned, however. that the policies were further refined.' In addition, a re- steps tak-en over the past year were only the port on the Bank's experience with governance beginning of what will be a continual. evolu- issues was issued (see Box 4-3). These two tionary process and that specific goals of the studies provided a candid assessmcnt of the is- program of actions will only be realized over sues and a framework for improvements in time. Bank strategies for dealing with them. Steps According to the report. the greatest chal- such as these are an integral part of the Bank's lenges for the future include fully integrating efforts to improve participation in project prep- effective and efficient participatory practices aration and project management and in the into the Bank's work, altering and simplifying overall way that the Bank does business. Bank procedures in order to shift attention to The most visible impact thus far of these ef- obtaining more results in the field, and getting forts, particularly project restructurings and the organizational signals and incentives right closing or cancellation of loans for poorly per- in order to truly establish a "culture of implie- forming projects. has been to prevent a slide in mentation" in the institution. During the past year. the Bank also ad- "4For details. see page 44. 76 World Bank Operafflons Rscal Year 1994 Box 4-3. The World Bank's Experience with Governnce The Bank's interest in governance-defined by Bank's activities in the new areas are expandingp the BankJ as the manner in which power is exer- the bulk of the Bank's governance work wil con- cised in the management of acountry's economic tinue to be public sector managemenL and social resources for development-derives Public sector management work, mainly tech- from its concern for the sustainability of the pro- nical in character, addresses the processes and grams and projects it helps to finance. machinery of public sector performance, not nec- [f sustainable development is to occur, a pre- essarily its causes. This suggests that the Bank's dictable and transparent framework of rules and future governance agenda should be developed at institutions for the conduct of private and publie two levels: first, through more determined at- business must exisL Governance of borrowing tempts to foster local ownership of reform pro- countries is relevant to the Bank's work because, grams. and second, through encouragement of in its absence. much of what the institution seeks institutions of civil society so that they can grow to achieve through its lending is at risk. and, in turn, seek greater accountability from A 1992 report to the executive directors on gov- goventments in the economic sphere. ernance descibed some of the activities the Bank The new procedures that have been intrduced was supporting in the area of governance in the to improve project preparation and portfolio man- form ofstudies, technical assistance, and its lend- agement are likely to have a strong positive in- ing operations. ln the intervening two years, ac- fluence on the Bank's work on governance. Thus: cording to a follow-up report.' the Bank has * icreasedemphasiswillbeplacedonthesys- moved rapidly and firto support borrowing coun- temic problems of prcject implementation. many tries in strengthening the governance underpin- of which are governance related. through the ning of their development efforts, and it has been country-portfolio performance-review process; able to do so within the framework of the eco- * the Bank's new disclosure policy provides an nomic and social dimensions of governance per- excellent opportunity to make much more trans- missible under the Bank's Articles of Agreement parent to the outside world how the Bank ap- Much of the governance work in which the proaches complex situations in borrowing Bank is engaged comprises traditional public sec- countries. tor management categories such as civil service In addition, the country-assistance strategy di- reform, public expenditure management, and alogue, one of the prin'ary vehicles for reviewing public enterprise rform. This is a reflection that the Bank's lending strategy in a given country, these categories are central to how power is ex- can provide a forum for frank evaluation of fac- ercised and that, in these areas, there is a sub- tors, including governance issues, that constrain stantial agenda for rehabilitation, modernization, the effectivencss of development assistance. and change. At the same time, the Bank has ex- tended its governance activities to entirely new areas of support under the rubrics of accountabil- 'Wodd Bank. 1994. Govemance: The Wodd Bank's Er- ity, rnle of law, ard transparency. While the ptdence. Washington. D.C. overall portfolio performance.5 Specifically, tic expectations about the extent to which the latest annual report on portfolio perform- project-development objectives would be ance-for fiscal year 1993-revealed that the achieved. (See Box 4-4 for a discussion of the overall health of the Bank's portfolio-based rating systems used to indicate project effec- on overall status ratings-was relatively stable tiveness.) between fiscal years 1992 and 1993. Since peaking at over 20 percent in fiscal 1991, the sBy the end of fiscal 1993. the latest date for which data are percentage of problem projects has fullen to 18 avaable.restruauring of 104 pnrocts had beencompleted percent in fiscal years 1992 and 1993P or was under way. while rcsterucng of thirty-six others The report also found that the percentage of wss being planned. Seventy-even problem proetsft were problem prjects basd on deveopment- cosed or canceled in fiscal 1993 as compared with thirty- problem projects based on dcvelopmnent- cight projects in rhscl year 1992.he project rcstructurings objectives ratings increased marginally, from and closingslcanellations havc had a positive ffect on the 12 percent in fiscal 1992 to 13 percent in fiscal age structure of problem projects. with the greatest im- 1993- The slight increase did not necessarily provcmentinthproportionofprjects that hd been ated as being problematic for two consecutive years. They have reflect a real deterioration in development per- alsohelpedto increase thedisburseicntratio inthe Bank's formance of the Bank's portfolio. however. portfolio in mwst operatioTn regions. Rather, it reflected efforts by the Bank's six 'Excluding countries that were in nonaccrual status andlor operational regions. within the limnitations of suffcred serious dvil conflict in fiscal 1993. the pcrcentage of probkm projccts declined from more than 18 percent in the current rating methodology, to base fiscal 1991 to 16 percent in fiscal 1992 and 15 percent in development-objective ratings on more realis- fiscal 1993. Improving Portfolio Management. Accountability, and Openness 77 Box 4-4. Inreasing the Reliability or Rating Project Effectiveness Projects are rated on a four-point scale to deter- In principle, progrcss should be assessed using mine the extent to which project-development ob- the same cost/benefit or cost-effectiveness crite- jectives (1DOs) are expected to be met and to ria that are applied at project appraisal or at com- determine their overall status (OS). Projects are pletion. If costs were not a constraint, this would rated on a four-point scale, with a I representing involve repeating periodically during project im- the best rating and a 4 the worst. A DO rating of plementation the original cost/benefit or cost- 1, for instance, means that all project develop- effectiveness analysis done at appraisal with ment objectives are expected to be substantially revised or updated data or estimates. As a prac- achieved. while a 4 rating means that major ob- tical and less costly alternative. however, the jectives will probably not bc achieved, and the portfolio management task force recommended project appears to be no longerjustified. An OS that progress toward expected development re- rating of t means no significant problems, while a sults be monitored based on the evolution of a 4 rating indicates the existence of majorproblems limited number of variables ("performance indi- that are not being adequately addressed. cators") that have been identified in the risk/ Although DO ratings are supposed to be re- sensitivity analysis at appraisal as critical to flected in the OS ratings, a recent analysis of the achieving the expected project development r- divergence between Annual Report on Portfolio sults. This requires substantial improvements in Perfrinnance (ARPP) and project completion rn- risk/sensitivity analysis and performance- portfperfornancc audit report ratings for a sam- indicator monitoring. ple of more than 1,000 projects completed in the As part of the action plan to improve portfolio 1980s concluded that OS ratings seemed to be management, work is proceeding on developing dominated by short-term concerns about imiple- guidance to staff on riskfsensitivity analysis and mentation, while DO ratings reflected longer- perfonnance indicators. Based on this work, re- term optimism that objectives would be achieved vision of the project-rating methodology and once imnplementation problems were resolved. project-perfonnance rating system was initiated Neither rating, therefore, was judged as being ri- in June 1994. The major revision entails, among liable in measuring the development effectiveness other things, the -option of a dual rating systen of projects in the sample. As a result, Bank staff thatwouldgive separate overall ratings to the im- were required, forthe purposcs ofthe mostrecent plementation status of a project and to its devel- ARPP, to pay greater attention to the quality of opment effectiveness (thus. DO ratings would no DO ratings. In addition. any significant gap in as- longer be subsumed as part of the OS ratings); sessments based on OS and DO was to be ex- greater attention to risks in the new DO ratings; plained. greater use of perormance indicators to measure The greater attention of staff to the DO ratings development effectiveness; and the adoption of in the Annual Report on Portfolio Performance guidelines for ax-post evaluation of development for fiscal 1993 helped to impmve the reliability of results of completed projects and for the evalua- those ratings. However, key to further and sub- tion of development results of ongoing projects. stantial improvement in their reliability are the Full implementation of these improvements will precise definition of the expected development realistically take a few years given the sharp de- results foreach projectandbettermeans forgaug- parture from current practices that is entailed and ing progress toward these results during the loan the large number of projects in the Bank's port- disbursemcent or implementation period, folio- Beyond the immediate effects of portfolio risks associated with Bank lending to borrow- clean-up, however, a definitive turnaround in ers that are at an early and difficult stage of overall performance in the next few years is not transition to a market economy, or of economic assured. Against the ongoing efforts to improve reform and adjustment, are also significant. As the management of portfolio performance must experience shows, country economic and insti- be reckoned the implementation risks inherent tutional factors have ultimately a considerable in the ambitious and complex developrnent effect in determining the development outcome agenda of the Bank and its borrowers. The of projects. 78 5 N .- : - _ ,- fQ a- eZ' ' * s s - a~~~~~~~~~~~~~~~ I~~~~~~~~~~~~~~~~~~~ '_~~ > * 4*i~~~~~~~~~~~~~~~~~~~~~~i __,_-~~~~~~~~~~ Cd / "P w ~ ~~~~~~~~~~~~ t A sandv lane benearki poplar trees is rite main roadwayfor conreving goods tomrarkcet in this part of Ckzinese Turkesran. 79 Section Five 1994 Regional Perspectives Africa The year 1993, on the whole, was a difficult better, as their GDF rose by 2.8 percent: the one for the countries of the Africa region, as countries comp.sing the CFA Zone, however. gross domestic product (GDP). excluding saw their economies contract for a third con- South Africa. grew by just 1.4 percent. Al- secutive year.' A positive development in 1993 though this represents an improvement over 1992. it is nevertheless disappointing. consid- ering the region's high raze of population 'Thc SPA for low-income. debt-distressed sub-Saharan Af- growth and the level needed for development. rcan countries provides quick-disbursing balance-of- paymnentsassitance to rwentymnine eligible countries (as of As in previous years. the countries implement- the end of June 1994) in support of reforn prognws de- ing major reforms, and therefore benefiting veloped in conjunction with the Bank and the International from the Special Progran of Assistance (SPA). Monetlry Fund (IMF). saw their aggregate output increase by 2.1 per- 2 The countries are B3enin. Burkina Faso. Cancroon. Cet- saw ~ ~ ~ ~ ~ ~ ~~~~~~.tral African Republic. Chad. Comoros, Congo. Cote cent, or more than the average for the region.' d'lvoire. Gabon. Mali. Mauritania. Niger. Senegal. and The sixteen core (or steady) reformers did still Tago. Tabl 5-1. Africa: 1992 Population and Per Capita GMN of Countries that Borrowed during Fiscal Years 1992-94 Per capita Per capita Population' GNPb Populabiot GNP" Country (millions) (US dolars) Country (minions) (US dollars) Angolae 9.7 - Madagascar 12.4 230 Benin 5.0 410 Malawvi 9.1 210 Burkina Faso 9.5 300 Mali 9.0 310 Burundi 5.8 210 Mauritania 2.1 530 Camneroon 12.2 820 Mauritius 1.1 2,700 Cape Verdc 0.4 8SO Mozambique 16.5 60 Central African Republic 3.2 410 Niger 8.2 280 Chad 6.0 220 Nigeria 101.9 320 Comoros 0.5 510 Rwanda 7.3 250 Congo 2.4 1,030 Sio Tomd and Principe V l 360 C6te d'lvoire 12.9 670 Senegal 7.8 780 Equatorial Guinea 0.4 330 Seychelles O t 5.460 Ethiopia 54.8 ltO Sierra Leone 4.4 170 Gabon 1.2 4,450 Sudan" 265 Gambia, The 1.0 370 Tanzania 25.9 110 Ghana 15.8 450 Togo 3.9 390 Guinea 6.1 510 Uganda 17.5 170 Guinea-Bissat 1.0 220 Zaired 39.8 - Kenya 25.7 310 Zambia" 8.3 - Lesotho 19 590 Zimbabwe IOA 570 Norm Te 1992 estimates of GNP per capita presented above are from th "World Development Indicators' section of World Devetlopment Report 1994. - Not available. a. Estimates for mid 1992. b. World Bank Artas methodology. 1990-92 base period. c. Estimated as lower-middle-incme (S676-52695). d. Estimated as low-income (SG75 or Icss). 80 1994 Reglonol Perspectives was that, on average, the low-income countries The political transition sweeping the conti- performed better than the middle-income one., nent has resulted in increasing multiparty de- although neither group recorded an increase in mocracies; whereas there were just six per capita terms. democracies a few years ago. the number had Some of the highest growth rates were reached twenty-nine by the end of June 1994. achieved by those countries, such as Lesotho, The transition, however, has not been easy, Malawi, Mozambique, and Zambia that were without cost, or uniformly smooth. Where recovering from the severe drought of 1991-92. transition govemments are in place. power The rather quick reco; -ry of these and other sharing has proven difficult to achieve, and op countries from the effects of the drought is tes- posing groups still vie for power in many timony to the. relative resilience of their econ- places. On the economic front, the transition omies and to the effectiveness of collaboration has sometimes disrupted production and com- among their public administrations, donors, merce, affected the mobilization and allocation and nongovemmental organizations (NGOs). of resources. and diverted attention away from The improvement in weather conditions was needed policy reforms. Yet the transition con- not generalized, however. Drought persisted in tinues nearly everywhere. some areas, posing a serious threat in parts of There were sharp contrasts on the African Ethiopia and Kenya, and the countries of the scene in 1993194. The installation of democrat- western Sahel experienced poor rainfalL In ad- ically elected governments in Malawi and dition, in these and other countries growth was South Africa stand in sharp contrast to the held backl by political transition, a high debt mass killings in Rwanda. There were a variety burden (despite debt forgiveness and resched- of outcomes in the economic sphere, too, due ulings), a deterioration in the terns of trade, to the contradictory forces at play not just and weak policy implementation. across countries, but within them and even Table 5-2. Lending to Borrowers in Africa, by Sector, 1985-94 (nmilons of US doaUns fiscal yarm) Annual avemage. Sector 19S5-9 1990 1991 1992 1993 1994 Agriculture 533.9 997.4 504.9 707A4 318.3 152.6 Energy Oi and gas 20.6 - 300.0 48.5 2.4 186.2 Power 113.9 230.0 155.0 86.0 356.0 90.0 Environment - - - - - 2.6 Human Resources Education 122.8 350.7 265.9 402.9 417.4 325.5 Population, health, and nutrition 75.7 232.7 432.8 100.3 131.2 161.6 Social sector - - - - - - Industry and Flnance Industry 124.6 180.1 11.0 200.0 83.5 29.6 Finance 2413 193.6 138.8 619.9 25F23 400.1 Infrastrcture and Urban Development Tclecommunications 50.0 225.0 12.8 - 89.1 - Transportation 339.4 543.6 309.5 242.8 483.0 515.0 Urban development 177.2 360.4 98.3 233.8 61.2 111IA Water supply and sewerage 102.9 257.2 256.0 297.4 67.2 74.1 Mining and Other Extractive 31.5 - 21.0 6.0 - - Multisector 504.0 285.6 861.0 895.0 434.2 711.0 Public Sector Management 81.0 76.6 27.2 133.6 1215 48.2 Tourism _ _ _ _ _ - Totat 2,5iS.0 3,932.9 3,394.2 3,973.6 27817.3 2,807.9 Of which: IBRD 909.3 1.147.0 662.9 738.4 47.0 127.7 IDA 1,609.7 2,785.9 2.731.3 3,235.2 2.770.3 2.680.0 Number of opcrations 80 86 77 77 75 60 Nort: Details may not add to totals beamuse of rounding. _Zero. A-rIca 81 ~~_ ~~-s- -- . - ticW1i S i.0i - -. -r~ ~ *_-; - lb v _s_~~ ~~ - api -- . ,, F _ - g | iX ,~~~~fl-. - Tanzanian women fishing in the Rufiji river delfa. 77te Bank is preparing long-term projections on Afnico's coastalfishing. within sectors. Some countries (such as The Despite this panoply of variations, the events Gambia, Sierra Leone. and Zimbabwe). where of the past twelve months have some common the implementation of reform programs is on elements that providecencouraging signs for the track, nonetheless experienced low GDDP future. Despite delays and costs in terms of growth rates due to the deterioration of their lives and physical assets, the democratization terms of trade, weather conditions, the linger- process is moving ahead. Despite economic ing effects of the 1991-92 drought, or the dis- and political hardships, reform programs have ruptions caused by rebel activity and political survived in most countries and have even been transition. In contrast, other countries (such as strcngthened in some. Scveral countries im- Equatorial Guinea and Sudan. for examp[e), proved their performance in the course of the where reform programs were lac!ing or off- past year. and the members of the CPA Zone track, registered growth of 6 percent to 7 per- have taken an historic. bold step to improve cent, helped by oil exports or favorable their competitiveness. While mucl.. remains to agricultural conditions. In yet other countries. be done, more countries are emba.ked on re- results were uneven, with agricultural growth form programs and face better prospects than coinciding with a decline in industrial produc- compared with a year ago. tion and services. or a decline in overall exports accompanied nevertheless by an ex- Varying Policies, Varying PerrormSnce pansion of nontraditional exports. Contrasts Another common thread of Africa's experi- also marked the implementation of policies. ence. despite the contrasts noted. is that Afri- While the countries of the CFA Zone as a group can countries that have sustained adjustment failed to take the necessary measures to restore policies generally have performed better than their competitiveness in 1993, many of them those countries that have not. This observa- implemented significant structural reforms in tion. made in a recently released staff study the fiscal, financial, trade, and other areas. In that covered the adjustment experience in sub- several of the good performers, the improve- Saharan Africa from 1981 through 1991 (see ments that took place were still inadequate. Box 5-1). is complemented by comparing the however: savings rates, for example. remained more recent experience of a country where pol- too low to support rapid. sustained growth. and icy reform has been seriously interrupted (Ni- social conditions continued unsatisfactory. geria) with a country that strayed from. but 82 1994 Regional Perspectives Box S-1. Implementation of Economic Reform: Overview and Seven Case Studies T!'c encouraging news from sub-Saharan Africa is PoLcy adjustments were undertaken to establish that countries that have persisted in implementing market-deterrnined exchange rates: improve rev- economic reforms have begun to see payoffs. A enue mobilization, while reallocating or reducing recent World Bank report' has traced the effects government expenditures, especially investment; of policy reforms during 1981-91 in a group of liberalize domestic prices (especially in agricul- twenty-nine countries. Of this group, the six with ture), trade and tariff regimes, and agricultural the greatest success in eliminating macroeco- marketing; introduce nondistortionary interest nomic imbalances enjoyed the strongest resur- rates and strengthen financial sector regulation; gence in economic performance, experiencing a enhance the efficiency of public enterprises and median increase of almost 2 percentage points in labor markets: and improve the coverage and the growth rate of GDP per person. The increase quality of social services. in their industrial and export growth rates was The case studies highlight several factors that e"en more strikit.;. Agricultural growth also ac- could explain the diverse economic outcomes in celerated in the countries that taxed their farmers the region. The ability tO persist with the less. By contrast, countries that did not improve fundamentals-macroeconomic stability, price their policies saw median incomes decline by 2 and market liberalization, and adequate social percent a year- sector allocations-separates the successes from Seven case studies completed by the Africa ie- the failures. Ghana, Kenya, and Tanzania are ex- gional Office of the World Bank-from Burundi, amples where a fairly good track record in these C6te d'lvoire, Ghana, Kenya, Nigeria. Senegal. areas was beginning to be established by the late a. d Tanzania-reinforce this finding, whic ex- 1980s. However. even where there is some plaining in greater detail the interaction between progress on the fundamentals, the lack of action initial conditions. external developments, and so- on other fronts-notably the financial sector and cial and political choices in implementing eco- public enterprise and civil service rrform-has nomic reforms.2 The primacy of sound pmven costly. Most policy reversals have been macroeconomic policies and stability for sustain- caused by the inability to move forward in a co- ing economic development, responding effec- ordinated manner in the core reform areas or the tively to domestic and external shocks, and inability or unwillingness to maintain the initial sending credible signals to the private sector are momentum of such reforms. clearly shown in the case studies. Broadly speaking, the economic reform pro- IWorld BaL 1994. en Africa: Reforns,Re- grams in all seven countries addressed the prob- suits and the Road Ahead. New YorLc Oxford Uni- ilems of high budgetary and balance-of-payments vew,sy Prss.' deficits, distortions in markets for goods and ser- 2 Husain, Ishrat and Rashid F;ruqee. eds. 1994. A.uw- vices and factors of production. suppiessed pri- ment in Afdra: Lessons fron Country Case Stadfes. vp.te sectors, and inefficient public services. World Bank. Washington. D.C. reembarked on. policy reform (Kenya) and 1994 budget abolished free transactions in the with one that has remained steadily on the re- foreign exchange and credit markets. thereby form path (Uganda). removing the remaining core pillars of the Nigeria went through a tumultuous period in structural adjustment program adopted in 1936. both 1992 and 1993. The planned democratic In 1990-92, Kenya witnessed a sharp decline transition was protracted and, in the end, did in all major macroeconomic performance indi- not establish civilian rule. The process gener- cators. However. in early 1993, the Kenya au- ated considerable uncertainty, economic dis- thorities signalled an interest in restarting the ruptions. and social unrest. Budgetary control refork.. process. and, as a result, the conditionc deteriorated, leading to fiscal deficits, which for strong medium-term growth in Kenya have exceeded 10 percent of GDP. Inflation rose to improved significantly. Implementation of sta- 40 percent in 1992 and 58 percent in 1993. The bilization policies and more effective enforce- official exchange rate was pegged below mar- ment of financial sector regulations have ket rates, with the spread reaching 100 percent sharply reduced runaway inflation (falling to an by late 1993. The external balance deteriorated annual rate of around I percent during the last significantly. with reserves dwindling and ar- quarter of 1993 after peaking at around 100 per- rears to external creditors rising to more than cent during the second quartsr). Important $6 billion. or one fifth of outstanding debt. steps towards structural reform. particularly in Meanwhile. the economy grew by only 4.1 per- the area of external trade. have begun to grad- cent in 1992 and 1.9 percent in 1993. compared ually restore domestic and intemational confi- with an average 5 percent in the preceding six dence in the governmcnt's commitment to years. The economic policies announced in the reform. With the elimination of all but a short Afrlo 83 list of import licenses and the introduction of reduced the capacity of governmcnts to pro- a unified and stabilized market-deLermined vidc basic siocial services. incrcased the inci- exchange rate (the Kenya shilling becoming dencc of poverty, and undermined the Zone's fully convertibic in May 1994). the siage has financial inslitutions. The spiral. in turn, was been set for the private, and especially the ex- caused by a massive loss of competitivencss port, sector to Icad the recovery. By the end of that resulted from a combination of the inflated 1993, monetary control had becn tightened, cost structure existing in the mid 1980s and the disciplinc had been reintroduced in the finan- major external shocks suffered since then. The cial sector, the maize market had becn fully prices of the Zonc's major exports (coffcc, co- liberalized, and foreign-cxchange rescrves had coa. cotton, phosphate, uranium. and oil) recovered to comfortable levels. These im- dropped sharply in the second half of the 1980s, provements facilitated the approval by the In- causing its terms or trade to fall by 40 percent ternational Monetary Fund (IMF) of a one-year between 1985 and 1992. The Zone's real effec- Enhanced Structural Adjustment Facility ar- tive exchange rate (REER) appreciated by 39 rangement during the fourth quarter of 1993. as percent over the same period. That movement well as the successful rescheduling of external was the result of the depreciation, since 1985, arrears with the Paris Club in January 1994. of the United States dollar and the large depre- Uganda has gone quite far in creating a free ciatiun achieved by many competing develop- enterprise economy. At the same time, the gov- ing countries of their own REERs through ernr.-ent has stabilized the economy through nominal devaluations in the context of eco- tight fiscal and monetary programs. Inflation nomic reforms. The internal adjustment pro- was reuced to around 4 percent in 1993, down grams and structural reforms pursued by from 45 pe_ccnt in 1992 and 240 percent in various CFA countries in the period 1986-93 1987, the year in which the present adjustment were able neither to correct this massive loss of program was initiated. Uganda has in place a competitiveness nor halt the ongoing down- program of comprehensive structural reforms ward spiral. covering the civil service, public enterprises, Recession and financial crisis in the CFA and major financial institutions, and is under- Zone continued throughout 1993. Moreover. as taking a large reduction in military forces to it became increasingly clear that internal ad- release resources for priority spending pro- justment programs were not working, external grams. These reforms have had a positive ef- financing for them dried up. For 1993 as a fect on the economy: Real GDP growth is whole, per capita real income declined by 435 estimated to have reached 6 percent in 1993, percent. exports fell by 3.9 percent in volume. enabling per capita consumption to rise by and investment further contracted to 13.8 per- about 2.5 percent. The lowered inflation has cent of GDP. contributed to a stable exchange rate and re- Against this backdrop. in early January 1994 newed confidence in the country's currency. In the heads of state of the CFA countries met in addition, the downward slide in coffee produc- Dakar to discuss ways to end the economic cri- tion, the country's main export, has been sis. The meeting resulted in the historic deci- halted. There are also signs that nontraditional sion to change the parity of the CFA franc from exports are growing rapidly: that the public's 50 per French franc. a level at which it had willingness to hold financial assets in the form been fixed in 1948, to 100 per French franc.3 At of savings and time dcposiss. which have in- the Dakar meeting. another important. al- creased fourfold in the past two years. is in- though less publicized. step was taken: the creasing: that the inflow of private capital has signing of a treaty transforming the West Afri- been substantial: and that investment. includ- can Monetary Union into a full economic ing rehabilitation and reconstruction work on union. A common approach to the implemen- properties of returning entrepreneurs. is on the tation of economic reforms that were needed to rise. All of these gains. cogether with the in- accompany the parity change was also dis- creased focus of government spending on basic cussed. social services. are expected to have a positive The decisions made at the Dakar meeting impact on poverty reduction. have provided a unique opportunity to restart the stalled structural adjustment process in the Improved Competitiveness fourteen countries. restore growth. and reduce The countries of the CFA Zone have faced poverty. Indeed, since January. nearly all major economic. financial, and social difficul- countries have adopted reform programs that ties since 1986. These difficulties were caused by a downward deflation'ry spiral of produc- tion, incomes. and expenditures that cut aver- * The parity %X Conwros' currency was changed to 75 pr age real per capita income by 40 percent. French ranc. 84 1994 Reglonal Perspectives are being supponed by the World Bank and the The World Bank, together with the IMF. the IMF. All postdevaluation programs give prior- European Commission for the European ity to restraining inflation to ensure that the Union, and the African Development Bank. is nominal parity change actually leads to a sub- cosponsoring an initiative to facilitate private stantial depreciation of the real exchange rate. investment, trade, and payments in Eastern Hence, public sector wage increases have gen- and Southern Africa and in the Indian Ocean eraily been limited to 10 percent to 15 percent countries-the cross-border initiative (CBI). to prevent a wage-price spiral. To allow some The CB[ is based on a new integration con- time for urban wage earners to adjust to the cept that promotes mobility of factors, goods, higher cost or imported items, increases in the and services across national boundaries among prices of selected imported goods (petroleum participating countries while minimizing products, rice, sugar, edible oils, medicines, chances for diversion of trade and investment. and school books, for instance) are being cur- It involves voluntary participation by countries tailed through temporary tax reductions and di- that are ready to accelerate the reform effort, rect subsidies. Fiscal reform-reduction of and is based on the principle of reciprocity deficits to sustainable levels, tax reform, and among the participating countries. The pro- restructuring of expenditures-also figures posed reform measures are in the areas of trade prominently as an objective of the reform pro- liberalization, liberalization of the exchange grams. Priority. however, has been given to system. deregulation of cross-border invest- protecting vulnerable groups and relaunching ment, strengthening of financial intermnedia- poverty-reduction programs by incrcasin-, pub- tion, and the movement of goods and persons lic expenditures on basic education andi health among the participating countries. The reform services. developing and implementing social agenda supported under the CBI has been finds targeted at the poorest groups. and ex- developed through a two-year process of dis- panding labor-intensive public works pro- cussion by public and private sector represen- grams. tatives of the participating countries. as well as consultations with regional institutions. Regional Cooperation Efforts The CBI was endorsed by thirteen countries The recent events in the CFA Zone aqd the at a meeting in Kampala, Uganda, in August new challenges facing South Africa and its 1993. To date, nine countries (Kenya, Malawi. neighbors call for strengthened regional coop- Mauritius. Namibia. Rwanda. Swaziland. eration. Various actions have already been Uganda. Zambia. and Zimbabwe) have con- taken in this direction, and others are under firmed their intention to participate and have consideration. In the CFA Zone, the member established mechanisms to prepare countrv- countries of the new West African Economic specific proposals for implementing the CBI- and Monetary Union (UEMOA) and the Cen- supported reform agenda. tral African Munetary Union have decided to In addition, the heads of state of Kenya. form economic-as well as monetary-links. Tanzania. and Uganda (the members of the In Western Africa, the signing of the treaty for former East African Community) recently met the new union by the six member states was in Arusha, Tanzania. to reaffirm their commit- accompanied by further efforts to render bud- ment to strengthened cooperation. There is a getary policies coherent. harmonize tariffs and consensus that this cooperation should be indirect taxes, and develop a regional financial based on practical improvements in investment market. In Central Africa. the six member incentives and tax regimes. and streamlined states of the Central African Customs and Eco- border formalities. nomic Union have taken advantage of their in- creased competitiveness to accelerate the The Bank's Assistance Strategy implementation of a new common external tar- The priorities for the Bank in Africa are if. Nontariff barriers have been removed, and poverty reduction through environmentally rates have been lowered. sustainable development: human resources These efforts are being supported by the development-not just through lending but Bank. together with the IMF, the European also by defining frameworLs for effective inter- Union, and other interested donors. ventions by governments and donors, as in a At the level of the entire CFA Zone, progress recent staff study on health in Africa (see Box was made during the fiscal year in the areas of 5-2); providing an cxceptional response, al- social-security provision and collection of sta- ready in progress, to the situation and events in tistics. With a view to providing a positive en- the CFA Zone: working with major partners to vironment for private sector-led growth, a fulfill the objectives and the priorities of the treaty has been signed that will put into place a SPA: and "getting results in the field" through common framework for business law. the improved quality of projects and their Africa 85 Box S-2. Toward Detter Health in Afrir Health issues are assuming an increasingly im- referral hospitals. Third. the report underscored portant place in the Bank's assistance strategy in the need for more efficient allocation and man- Africa. Reflecting this trend. a major sector study agement of public financial and human resources was compieted in 1993 in closc coopcration with devoted to health improvement, and for their pro- the World Health Organisation. the United Na- gressive reallocation away rrom less cost- tions Children's Fund, and other partners. The effective interventions (largely provided through study, Better Health In Africa. aimed at building tertiary facilities) to a basic package. It found sub- consensus on future health strategies in Africa stantial room for increases in technical efficien- among the many stakeholders.' It round that cy.' while dramatic improvements had taken place The report concluded that substantial health since independence, most African countries improvement in Africa is feasible. despite the se- lagged well behind other developing countries in vere financial constraints facing most African health status. At fifty-one years in 1991. life ex- countries. The will to reform and to provide a pectancy at birth in Africa is eleven years less limited package of quality, low-cost, and highly than in the low-income countries as a group, and cost-effective health services to the vast majority Africa's infant mortality rate, at over 100 deaths of the population is central to success. The study per 1,000 live births, is about one third higher on found that higher-income and middle-income Af- average than for the universe of low-income rican countries, in due course, should be able to countries. New health problems, such as AIDS, finance a basic package of health services for and new strains of well-known discases such as their people from public and nongovernmental re- malaria, threaten the important health gains made sources, without substantial external support. in Africa over the past generation. However, the low-income countries are likely to The report discussed "best practices" for need donor assistance in support of health for an health improvement by African governments and extended period. These countries now spend their external partners in three areas. First, as did about $8 per capita annually on health from all World Development Report 1993-Investing in sources-public. nongovernmental. and Health, the report emphasized the importance of external-compared with the indicative estimate strengthening the capacity of houscholds and for the basic package in the study of about 513. communities to recognize and respond to health The transition from the current to the indicative problems. This requires health and devdopment level of spending will have to be implemented strategies that increase the access of the poor to flexibly. on a country-by-country basis, with pro- income and opportunity, pay special attention to visions put in place for interim targets to be met female education and literacy, provide for com- along the way. munity monitoring and management of health ser- vices, and fun-ish information to the public and 'World Bank. 1994. Beter Heafth in Africa. Washing- health-care providers on health conditions and tso. D.C. services. Second, the report called for reform of Forexampte, poordr btttion. and prcscniptiao practices are responsible, to- African health-care systems. and especially for gethe w other nctorsbran effective consumption maling a basic package of cost-effective health of only about S12 on drugs for every SlIO in public services available to Africans near where they spending on phnnaceutkals in many African coun- live and work through health centers and first- ries. implementation. especially through strong vironmental program for the region. This pro- capacity-building efforts. gram has been addressed primarily through the Poverty reduction rhrotJgh environmen:alIv elaboration and implementation of national en- sustainable development. The need and ur- vironmental action plans (NEAPs) and through gency to reduce poverty in the region is evi- the Bank's lending program. NEAPs-which dent; however, progress has been limited in provide a basis for the Bank's dialogue with Africa as a whole. despite success in some borrowers on environmental issues, describe a countries. Achieving a high rate of economic country's major environmental problems and growth. combined with a pattern of growth fa- concerns, and formulate actions to address voring increases in incomes in the poorest sec- whatever problems are identified-have sys- tions of society. is central to the Bank's tematically paid attention to arresting land deg- poverty-reduction strategy. The Bank's two- radatiL'n through better natural resource pronged strategy. as elaborated in World De- management. The Bank's regional portfolio in- velopment Report 1990. acts as a guide to the cludes more than $500 million in environmental institution's economic and sector work. as well projects. some of which can be directly linked as to its lending operations. to the NEAP process. The Bank has also been Fighting land degradation and desertification involved in the preparation of a new interna- have been key e&jectives of the Bank in its en- tional convention on desertification that is cur- 86 1994 Regional Perspectives Table 5-3. World Bank Commitments, Disbursements, and Net Transfers in Africa, 1990-94 (millions or US dollars: rLsa yeas) Nigeria Cate d'lvoirc Sudan Total rcgion start slart start start Item 1994 199$ 199094 1994 1994 1990-94 1994 1994 1990-94 1994 1994 1990-94 UndLsbursed commitments 2,461 423 181 13.118 Commitments - 1,954 376 1.365 - 98 2,808 16,953 Gross disbursements 353 1,646 306 1.073 48 378 3.195 14.002 Repayments 348 1,402 183 769 3 49 1.116 4.678 Net disbursements 5 243 123 304 45 329 2.079 9,324 Interest and charges 270 1,325 149 767 4 36 869 4 "1 Netttansfer -265 -1,082 -26 -463 41 293 1,211 5.103 NoTE: Disbursements frmm the IDA Special Fund are included. Te countries shown in the table awe those with the largest amounts or public or publidy guaranteed long-tenn debL Details may not add to totas because of roinding. -Zero. rently being negotiated and is prepared to be a pledges have increased, and some disburse- partner in its implementation when it enters ments will be accelerated in response to these into effect, needs. In addition to mobilizing additional re- Assisrance to CFA countries. Since the par- sources. SPA donors have stressed the need to ity change and as of June 30. 1994. IDA has pursue greater selectivity in allocating resources provided approximately $1 billion in quick- to ensure that countries with strong refornn pro- disbursing credits and adjustment operations to grams are adequately funded and that scarce the CFA countries. For the short term, the resources are used efficiently. As of June 30. Bank-supported postdevaluation programs in- 1994. the donor community had pledged dlude. in addition to steps to limit the price in- $6.6 billion in quick-disbursing balance-of- creases of essectial goods, (a) a draw-down payments assistance. and further efforts are of reserve stocks and additional imports of es- continuing to close the remaining gap. sential foodstuffs to counter speculative com- The priorities and objectives of SPA-3 are mercial practices, (b) increased budgetary achieving higher growth rates and alleviating appropriations for education and health. and poverty: supplementing policy-reform pro- (c) steps to assure adequate supplies of essen- grams with more investment in human re- tial drugs in public health facilities and of low- sources and infrastructure; raising the level of cost generic drugs in privatc pharmacies. For domestic savings and private investment: plac- the longer term, expenditures on labor- ing greater emphasis on ensuring that the ben- intensive civil works programs. rural infra- efits of growth are directed at reducing structure. education, and health will be poverty: and strengthening local economic increased. as will special pregrams (nutrition in management and institutional capacity. The particular) that target the poorest groups and SPA's primary objective continues to be to as- that will be implemented by NGOs and com- sist countries to strengthen their policy-reform munity associations- programs and structural reform efforts. How- SPA-ptase three. The third phase of the ever. to accelerate growth. reduce poverty. Special Program of Assistance (SPA-3). and realize the full benefits of policy reforms. launched by the program's donors in October the efficiency ofpublic investment financing by 1993. will cover the three catendar years 1994- donors, wnich still accounts for about 80 per- 96. Since the CPA Zone countries instituted a cent of total donor financing. must be improved parity change in their currency and launched substantially. Discussion is continuing on sec- comprehensive economic reforms. two addi- torwide approachcs to donor financing aimed tional countries, Comoros and Cote d'lvoire. at improving aid coordination and effective- have met SPA eligibilitv requirements. bringing ness. The SPA's role would be to serve as a the total of eligible countries to twenty-nine, catalyst to encourage donor support for such The estimated requirements of donor adjust- integrated sector programs. to monitor out- ment assistance for these countries is $12 billion comes. and promote the harmonization of do- over the three-year period. The SPA donors nor procedures. Mobilization of resources and have met twice since the parity change to dis- coordination of specific sector-investment pro- cuss financing requirements. Total donor grams will continue at the country !cvel Africa 87 through mechanisms such as consultative the amount of loan cancellations expected to groups. roundtables. and country-based local result from completed or planned restructur- aid-coordination groups. ings of problem projects totaled about $500 mil- Project quialiiy and itmpltenmtration. Despite lion. the difficulties faced by the region, portfolio The need for capacity building in Africa cuts performance was relatively stable in 1993. Dif- across all sectors. and. in all cases the need is ferences among countries were caused. in part, urgent and acute. The challenge involves both by variation in macroeconomic performance. making greater use of existing local capacity Overall, adjusting countries had a better record and helping to build such capacity where it of project performance than the nonadjusting does not exist. The Bank's approach recog- ones. and operations in the particularly difficult nizes that capacity-building issues need to be areas of agriculture and adjustment lending im- addressed at an early stage in the project cycle proved their implementation records. The most and that the effort cannot succeed without im- serious general constraints to effective imple- proving the performance and productivity of mentation are uncertain borrower ownership the civil service. This concern Las led the Bank and limited local capacity. To increase owner- to appoint a Capacity Building Committee to ship. the Bank is making a concerted effort to make recommendations on the most effective involve stakeholders (governments. beneficia- ways to advance toward this goal. The com- ries the private sector) in project preparation mittee's recommendations (which highlight and implementation. The use of participatory "best practices" to follow and cover a broad approaches-beneficiary assessments. partici- spectrum. from ESW and lending to the role of patory rural assessments, and participatory resident missions) have been approved and are workshops-is steadily increasing. In many being carried out. cases. stakeholders participate not just in Capacity building-as well as dialogue with project design and preparation but also in eco- the intended beneficiaries of development- nomic and sector work (ESW). Several actions continued to be the focus of the Bank's work in are under way to improve project quality at en- South Africa during the past year. In that coun- try such as preparation of "letters of sector try, the Bank's informal work has dealt with policy." avoiding unnecessary complexity in the entire political spectrum. including nongov- project -design (through participatory ap- emmental organizations. the private sector. proaches to project preparation and grcater in- teachers. and trade unions. Dozens of South volvement by resident missions in the process. Africans have been trained in economics, and for example). testing new or complex ap- relationships have been built up with many of proaches in small pilot operations. and identi- the country's economic and political actors. In fying project-monitoring indicators that reflect April 1994. the Bank opened up a resident mis- both output and impact. In fiscal 1993. the most sion. following a request from the multiparty recent year for which numbers are available. South African transitional council. 88 1994 Reglonal Perspectves East Asia and Pacific Strong economic growth across almost all monetary, and basic market reforms (see Box countries dominated the development pic- 5-3). Indonesia-the region's second-largest ture in the East Asia and Pacific region in cal- economy-maintained a steady 6.6 percent endar year 1993. In addition to its remarkable growth rate, with significant increases in indus- poverty reduction in recent years. East Asia trial production and exports; a large debt bur- and Pacific again led all regions-developing den and environmental issues loomed as and developed-in posting a 9.2 percent challenges to the quality and sustainability of growth rate, up slightly from 8.7 percent in its growth. Other countries with real rates of 1992. Export growth continued to be substan- growth in GDP in excess of 5 percent included tial. registering an increase similar to 1992's the Republic of Korea. the Lao People's Dem- 13.6 percent. China. the world's largest devel- ocratic Republic (Lao PDR). Malaysia. Thai- oping economy, recorded 13.4 percent growth land. and Viet Nam. A recent study concluded in gross domestic product (GDP), despite con- that if economic growth had been randomly cns during 1993 about overheating the econ- distributed among countries, there would have omy. China also continued to implement fiscal. been one chance in 10.000 that it would be so concentrated in a single region (sec Box 5-4). A remarkable feature of the region's cco- Table 54. East Asia and Pacific: 1992 nomic performance in the past year was the Populafion and Per Capita GNP of relative evenness of steady high growth rates. Countries that Borrowed during Fiscal The Philippines was the only major country in Years 1992-94 which the regional average lagged significantly. but recent events (successful completion of the Ppt aNpita stand-by arrangement with the IMF. comple- Country (miHions) (US $tanars) tion of a Brady-type of debt agreement. reforms that encourage greatcr domestic and foreign c,atnbodia1 9.1 - competition, and efforts to increase the level china 1,;62.2 0 and eficiency of public investment in infra- FIni 0 8 2.010 structure) gave reason for cautious optimism Indonesia 1843 670 that better economic times may be ahead. Kora, Republicof 43.7 6,790 The small Pacific island economies wit- Lao Pcople's De4ocratic nessed a mixed performance in 1993. Fiji. the Republic 84.6 250 largest of these. recorded a real GDP growth Malaysia 18.6 2.790 rate ofonly 1.7 percent. compared with 3.1 per- Maldives 0.2 S cent in the previous year. as a result of the MongoliaN 2.3 - effects of a severe cyclone that struck in Jan- Papua New Guinea 790 uary 1993. The Solomon lslands a6o recorded Philippines 64.3 710 a sharp drop in GDP growth to about 2.5 Solomon Islands 0.3 710 percent-as co,pared with 8.2 percent in TVailand 58.0 1 8 1992-recIecting a Iowdown in logging activity Viet Nam 69.3 - and a decli,c in frning. Signs of recovery were Western Samnoa 0.2 940 ,, seen elsewhere. however: Recovering from the Nare: The 1992 estinmas of GNP per capita pcsentcd effects of two major cyclones. the Western Sa- above are firom the 'Wortd Development Indicators" src- moan economy grew by about 5 percent: Van- tion of World Devdepmnes Reporn 1994. uatu also saw a slight upturn during the year. - Not available. Economic growth in some of the islands ben- a. Estimates for mid 1992. cfited from a pick-up in tourism following the b. World Bank Atlas methodology. 1990-92 basc pefOd. recovery from recessionary conditions in ma- c. Estimated as low income (S675 or less). jor source mark-cts. The Pacific island econo- d. E%timaccd as lowcr*midlc income (S676. 34._695). mies also continmud to bcnefit from substantial East Asia and Pacific 89 Box 5-3. China: Conutinuig Reform and Development During the past year. China's economy. in many lar, fixed asset investment and industrial output ways. cperienced the enviablic difficulties that grew at a more rcasonable pace than in the first arise from significant economic success and bold half of the fiscal year. and month-on-month infla- market reforms. In fiscal 1994. China's tax reve- tion appeared to be subsiding. Tighter credit- nues increased, as did deposits of individuals in one of the most effective monetary instnuments the banking system. The nominal exchange rate available to the cential government-caused in- remained stable aftera substantial devaluation re- creased difficulty for SOEs, especially in the sulting from the unification of the official and northeast of the country and the interior. Growth swap market rates in3anuary. Export growth was in output of SOEs was low, even nelgative, in the healthy. foreign dircct investment continued to northeast and southwest in the second half of the flow into the country in large volume, and foreign fiscal year. raising the possibility of urban tension exchange reserves were steady. as the adjustment to the market progresses. The struggle to contain inflation. however. A Bank report recomnnends additional mea- points to structural difficultics in the economy sures in key areas to address structural weak- that can no longer be ignored. Ongoing price re- nesses in the fiscal and financial system. Provided forms and relatively large state-owned cnterprise this overall reform plan is properly implemented, (SOE) deficits are the main causes of inflationary China appears likely to be able to achieve high pressure in China. and sustainable economic growth without the Despite the sense of voladlity as the economy benefits being dissipated in high inflation. In the continued its strong growth, most recent indica- coning years. however. the risk of accelerating tors have shown a welcome improvement and, in inflation remains high as such reforms are en- some areas, evidence of stabilization. In particu- acted. Box 5-4. The East Asian iracde A major work in fiscal 1994 was the publication of with export push hold the most promise for other "The East Asian Miracle Economic Growth and developing economies." the study concluded. Public Policy." the product of a Wodd Bank re- Even so. it added. developing countries hoping to search team.' The report stimulated-widespread follow in the footsteps of East Asia should .imit debate on the components of economic policy policy interventions and focus instead on the fun- that underpinned the spectacular performance of damentals. the high-performing East Asian countries. Signif- The fundamentals that East Asian economies icantly, the report found that there was lttle that focused on included: could be described as 'miraculous' about the a Managing monetary and fiscal policy to en- economic performance. even though the chances sure low inflation and a competitive exchange of such a concentration of growth, assuming it rate; were randomly distributed worldwide, were just * Concentrating public investment in educa- one in 10.000. 'Fundamentally sound develop- tion on primary and secondary levels of school- ment policy was a major ingredient in achieving ing. rapid growth.' the report observed. But-and it * Fostering effective and secure financial sys- was this finding that aroused the most active tems to encourage savings and investment debate-the book also noted that government in- * Limiting protection so that domestic prices tervention had played a role. How much of a role are close to international prices; and was not easy to discern, the researchers con- * Supporting ariculwre by assisting the adop- cluded. dtion of "green revolution"' technologies. invest- Previous Bank studies had described these pol- ing in rurl infrastructure, and limiting taxation on icy interventions-suppressirg interest rates or agricultural goods. promoting favored industries, for example-as A summary of the book is available in English. always harnful to growth. The study said that French, Japanese, and Spanish. .export push." a combination of sound funda- mentals and selective interventions. had been IWod Bank. 1993. The East Askm Miracle: Econontc crucial to East Asia's success. Of the nainy in- Growth antd Public Policy. A Word Bak Poriry Re- terventions tried in East Asia. those associated search ReporL New Yoric Oxlord Univesity Pius. resource flows and remittances. The combina- exchange-rate stability and control over infla- tion of external resource availability, open- tion. Emerging fiscal deficits in some island ness to trade, and generally sound fiscal and economics need to be reduced to ensure mac- monetary management has ensured relative roeconomic stability. however. 90 1994 Reglonal Perspectives The Pacific islands continue to face a unique IDA credits, totaling $324.5 million. had been set of development challenges: They are con- made to Viet Nam for projects in the educa- strained by small domestic marklets. a narrow tion. transportation, and agriculture sectors, resource and production base, and high unit while one emergency rehabilitation credit, for costs of infrastructure; they are also heavily $62.7 million, was approved for Cambodia. dependent on extemal trade and are vulnerabic Both countries are among the poorest in the to external shockts and natural disasters. De- world, with annual per capita incomes of about spite an almost complete absence of absolute $200. but each, for different reasons, offered poverty. the islands are conrronting acute en- signs of hope for sustainable economic devel- vironmental issues which, in some cases, will opment. significantly affect their long-term economic While overall the region performed impres- outlook. Deforestatior. in the Solomon Islands. sively. the picture was far from unblemished. in particular. is an issue of major economic and and areas of concern highlighted in last year's environmental importance to the country. Anntal Report remained as obstacles to sus- Papua New Guinea also faces important issues tained development for most. if not all. coun- of deforestation and preservation of ecological tries of the region. In particular, serious diversity. It has recently enjoyed rapid growth environmental damage. aasociated with rapid fueled bv rising mineral and new oil exports, urbanization. inadequate regulation and plan- but it must cope with problems of promoting ning. and incorrect pricing of resources. con- growth in the rest of the economy. tinues to impose majorcosts. Land degadation Viet Nam rejoined the Bznk's list of borm w- and deforestation also remained as serious ers in fiscal year 1994 after a fifteen-y *ar threats to sustained growth. Because the poor hiatus. and Cambodia became a first-time bor- suffer disproportionately from the effects of en- rower (see Box ,-5). By the end of the year. vironmental degradation. environmental issues Table 5-5. Lending to Borrowers in East Asia and Paciric, by Sector, 1985-94 (millions of US do6Xars fscal years) Annual avcrae Sector 198549 1990 1991 1992 1993 1994 Agriculture 726.9 743.0 1374.7 826.7 1,089.3 1,735.4 Energy Oil and gas 54.0 86.0 - 100.0 225.0 266.0 Power 533.0 813.0 275.0 1.745.9 760.0 1,048.5 Environment - - - - 50.0 306.5 Human Resources Education m.0 434.4 5920 474.1 478.9 346.6 Population, health, and nutrition 72.8 - 164.0 129.6 200.4 160.0 Social sector - _ 9 7 industry and Finance Industry 259.2 - 361.7 82J 250.' 40.0 Finance 373.1 68.0 439.3 - 457., 100.0 Infiastructure and Urban Development Telecommunications 7.0 391.7 - 375.0 134.0 250.0 Transporation 726.9 497.2 323.6 1,182.5 1,132.2 1,340.0 Urban development 249.7 86.2 SF3.1 168.0 110.0 349.0 Water supply and sewerage 77.5 349.0 177.8 275.0 -310.0 - Mining and Other Extmrrtive 25.2 - - - Multisector 298.0 250.0 250.0 70.0 200.0 2L7 Public Sector Management 6.1 - 62.0 17.0 173.0 Tourism _ ____ Total 3.681A 3.7185 4,563.2 5.446.5 5.569.8 6.034.4 Of which: IBRD 3.107.2 3,066.8 3.471.0 4,386.9 4.404.8 4.623.8 IDA 574.2 651.7 1.092.2 1,059.6 1.165.0 1.410.6 Number of operations 40 35 39 45 45 43 Nom Details may not add to totas beca se of reundiag. -Zero. East Asia aid Pocific 91 Box 5-5. Lending to Viet Nam Resumes; Is Initiated in Cambodia After a rifteen-year hiatus, lending resumed to support of an emergency rehabilitation project, Viet Nam during fiscal 1994. when two credits designed to arrest the deterioralion in basic ser- totaling about $228 million were approved in Oc- vices by financing priority imports. tober 1993. One credit. for S70 million, will sup- In addition, a policy framework paper, pre- port a primary education project, while the pared jointly by the government, the Bank, and second. for $158.5 million, will support highway the IMF. was agreed upon. The paper provides repair. A third credit, for $96 million, was ap- details of the country's medium-tenn adjustment proved in January 1994; it supports a program to and reform progrm. Over the next three years. provide mor credit and back-up services to small the government intends to consolidate the initial flnners in Viet Nam. In addition to these three restoration of macroeconomic stability. under- investments, the Bank has been providing tech- take a process of institutional strengthening sup- nical assistance for the preparation of a public ported by comprehensive technical assistance. investment program and for improving capacity substantially increase public investment in order in core ministries. The assistance is expected to to address rehabilitation and reconstruction enable the Bank to identify further projects in pri- needs, and initiate a process of wide-ranging ority areas such as infrastructure. agriculture, structural reforms aimed at enhancing savings, in- natural resource protection. and the social sec- vestment, and growth over the longer term, tors. In view of the legacy of war and devastation The three credits were approved aftera support and the recent political transition, restoring finan- group of donor countries assisted Viet Nam in cial stability. strengthening the eentral institu- clearing its arrears to the IM in October 1993. tions of macroeconomic management, and In advance of actual lending, the Bank had initiating investment for rehabilitation and recon- done a great deal of preparatory work. Analytical struction comprise the most immediate tasks. The work had resumed in 1989. with the result that donor community has pledged its support for several economic and sector reports had been Cambodia's recovery. In March 1994. at a meet- completed, and a solid basis for resumption of ing of the International Comnittee on the Recon- lending had been established. struction of Cambodia. donors renewed that An initial donors' group meeting for V-iet Nam, support based on an economic report prepamd by sponsored by the Bank and the United Nations the Bank: Cambodia. from Rehabilitation to Re- Development Pogranmme, was held in Paris in construction. November. and pledges ofS 1.8 billion in aid were Against this background, the government has given by multilateral and bilateral donors. It was adopted a medium-term adjustment progamm for agreed that, in the future, the World Bank would which it is secking support from the IMF through chair a consultative group meeting each year, as a three-year arrangemcnt under the Enhanced it does for other countries. Structural Adjustment Facility and has begun During the past year, the Bank extended its preparations for a structural adjustment credit first-ever credit to Cambodia. which joined the and a companion technical assistance project institution in 1970. The $62.7 million credit was in with the World Bank. are a major concern for the countries in the year, which is low among developing countries region and the Bank. worldwide. About 80 percent of the population Another serious problem that has been ex- is emerging from socialism-morc than in Cen- posed and exacerbated by the region's high tral and Eastern Europe and the former Soviet growth rates is the historical inadequacy of in- Union-while the middle-income countries of frastructure investment relative to rapidly Korea. Malaysia, and Thailand comprisejust S growing demand. Reflecting this. Bank lending percent of East Asia's people. The significance emphasizes effective infrastructure develop- of this is that East Asia has sustained rapid ment across the region. with lending for tmans- growth and far-reachinig social and economic portation. power, and irrigation again the reforms at relatively low income levels and largest component of the overall program. Be- when their economies were undergoing major cause the region's infrastructure needs, how- internal reforms. This augurs well and suggests ever, are so iarge, the Bank alone cannot have that further inroads may bc made in reducing more than a marginal effect. The private sector poverty and protecting the environment as the in the countries tiLemselves and through foreign reform process advances. underpinned by direct investment (FD!' will have to play an larger regional flows of trade and investment. increasingly critical role in developing and modernizing East Asia's infrastructure base. Progress in Poverty Reduction Despite recent gains, the countries of the re- Among all regions. East Asia and Pacific gion have an average income of about S600 a stands out as the one that has made the most 92 1994 Regkonal Perspectives 0 fi SN~~~~~~~~~~~~~~Ii mmmuauumm..,- i0 *UIuA I I ,.I~Uuuii Consciousness abot the environment has been raised in Tonga. as these murals att-. o ioe Ireigor switk which Mke inhabitants rt to geJ rhe message across. impressive gains in poverty reduction. as well are the hardest to lift from poverty. even by as being the fastest growing. Living standards sustained economic growth. For this reason. nave quadrupled in a generation. and health the Bank places special emphasis on targeted and education indicators have posted signifi- poverty strategies in its lending program. But cant gains. One striking feature of growth in there is reason for confidence: Governments in East Asia has been its evenness; it is spread the region have shown themselves determined across most of the population and is not con- to invest in basic human needs. such as health fined to a wealthy elite. Absolute poverty has care and cducation-steps that have proven fallen sharply in East Asia, from a third of the central to an effective fight agnst poverty- population in 1970 to a tenth in 1990. at a time when the overall population was growing.' In Obstacl to Sustned Growth absolute numbers. East Asia's population liv- Despite its impressive performance. the re- ing in absolute poverty numbered 400 million in gion faces a nu.mber of obstacles to sustained 1970 and 180 million in 1990. Not only were 220 growth: indeed. some are so formidable that, if million people lifted above the absolute pov- unresonred. they could stop or even reverse the erty mark. but over the same period, 425 mil- progress now being made. These obstacles in- lion people were added to the population-also c!ude: above the poverty leveL. The most impressive The environment. Developing countries of gains have been made inl Indonesia. where the the East Asia and Pacific region have paid in- percentage share of absolute poverty has fallen sufficient attention to protecting and restoring from 60 to 15 of the total populaton over the the environment as population growth. rapid period, and China. where it fell from 33 !o 10 urbanization, and the spread of industry have percent. But progress was impressive alm-ost placed sizable demands on air. water. and for- throughout the region, with Korea and Malay- est resources. The consequences today are sia cutting their proportion of absolute poor heavy. with unacceptably high pollution levels from 23 anid 18 percent, respectively. to about in air and water throughout much of the 5 percent in each country. Th.ough the gains have been outstanding. the task ahead is even more challenging. The re- 4Absolutc poveny is defined here as income insufficient to maining poor live in remote. barren areas and mainWain a subsistence intake of 1)0 calories a day. East Asia and Pacific 93 Table 5-6. World Bank Commitments, Disbursements, and Net Transfers in East Asia and Pacific, 1990-94 (millions or US dollrs: raiscal years) China Indonesia Philippines Total region start start sart Stan Item 1994 1994 199094 1994 1994. 1990-4 1994 1994 1997194 1994 1994 1990-94 Undisbursed commitmenls 7.720 4.785 1.988 16,554 Commitments 3,160 11.028 1.490 7.215 478 3,414 6.124 25.422 Gross disbursements 1,926 7,111 1.170 5.909 480 2.623 4.209 18.888 Repayments 282 984 833 3.332 343 1.580 2.669 11.308 Net disbursements 1.644 6.127 336 2.576 137 1.043 1.540 7,581 Intcrest and charges 365 1,379 882 4.038 346 1.570 2.043 9.S77 NCL transfcr 1,279 4,748 -546 -1,462 -209 -527 -503 -1,996 NOam Disbursements frnm the IDA Special Fund are included. The counuries shown in the table are those with the largest amounts of public or publicly guaranteed long-term debt. Details may not add io total becausc of munding. region-particularly in major urban centers. rains. from which national and regional policy Urgent steps are necessary to reverse this on atmospheric emissien can be drawn: and trend and to foster a more efficient and 'envi- . increased investment in environmental ronment friendly" growth in the years ahead. projects throughout the region. Addressing the region's environmental needs Infrasrructtre bottlenecks. Rapid economnic will cost an estimated $24 billion each year by expansion has outstripped the capacity of ex- the year 2000. The Bank has prepared environ- isting infrastructure and has created serious im- mental assessments for most countries in East pediments to further investment and rapid Asia and is seeking to focus borrowers' atten- growth. Greater electricity-generation capac- dion on the long-term benefits of sound envi- ity. sufficient telecommunications facilities. ronmental policies. Environmental screening better urban and intercity roads. and efficient of projects. and full impact assessment and mit- ports are high on the list of East Asia's infra- igation of many. is now standard Bank proce- structure needs. Bank estimates suggest that. dure. Reflecting this priority, the Bank in the 1980s. infrastructure investment in East emphasizes sustainable environmental prac- Asia may have lagged necessary levels by tices in all its leniding. In calendar year 1993- much as 2 percent to 3 percent of GDP. To the most recent period for which complete make up this shortfall. the region will need an figures are available-the Bank lent $3.6 billion estimated S1.5 trillion in infrastructure invest- dollars for projects in the region with specific ment during the 1990s. Fifty-eight percent environmental components. The Bank was of Bank lending to East Asia in fiscal 1994 was also involved in broad-ranging policy analysis, for infrastructure. with most going to transpor- through the publication of "Toward an Envi- tation ($1,340 million)- Other infrastructure ronmental Strategy for Asia.'"5 and with other commitments included power generation initiatives including: (S1.049 million). irrigation (S491 million). urban * the Asia Water Resources Initiative. advo- development (S349 million) and telecommuni- cating a comprehensive. river basin approach cations ($250 million). (See Table 5-5 for de- to water policy: tails.) The size of the investment shortfall * the Asian biodiversity strategy. involving demands that the private sector play an cx- consultation with nongovernmental organiza- panding role in infrastructure financing: in tions and specific project preparation in the re- turn. governments of the region will need to gion in concert with the Global Environment establish the appropriate regulatory and legal Facility: frameworks to attract and secure such invest- s the Metropolitan Environment Improve- ment. ment Program. a coordinated approach to ur- Financial sector reform. Increased llows of ban environmental management in cities such trade and FDI to East Asia arc placing straiits as Beijing. Jakarta. and Manila: on existing financial structures. indicating the * A-nalytical work on deforestation in the vast area covered by Cambodia. the Lao PDR. 'Brandon. C., and R. Ramankuty 1993- 'Toward an En- and Viet Nam; vironmental Strategy ror Asia 'World Bank Discausion * "Rains Asia." a computer analysis of acid Paper No. 224. Washington. D.C. 94 1994 Regional Perspectives need for more flexible and responsive Finance nomic development worldwide. Cumulative systems. The trend is already under way, but it Bank lending to the rcgion is morc than $70 needs to move more quickly and to incorporate billion, with lending to agriculture and rural de- building new or stronger banking systems and velopment ($16.3 billion), transportation ($I 3.2 money markets. The Bank is working with its billion), and power ($11.8 billion) the major cat- member countries, at a range of levels. to up- egories. grade and liberalize finance markets and insti- Fiscal vear 1994. Today. the Bank deals with tutions. twenty countries in East Asia and Pacific. lend- State enterprise reform. Large. inefficient ing $6 billion in fiscal year 1994. China ($3.1 state enterprises obstruct and delay economic billion). Indonesia ($1.5 billion), and the Phil- growth and the transition to a more efficient ippines ($478 million) were the biggest regional market economy. Progress is being made in borrowers. Roughly $1.4 billion of the lending this highly sensitive reform area across much program was in the form of IDA crecits. After of the region. particularly in China and Vict a fifteen-year hiatus. lending resumed to Viet Nam. Malaysia is pursuing an ambitious priva- Nam; in Cambodia, the Bank extended its first- tization program. The Bank is encotiraging bor- ever credit during the past year. rowing countries to create a competitive The Bank's mandate in all its borrowing environment for business growth and to take member countries is to support broad-based steps to expose state enterprises to the disci- economic development and the reduction of pline of the market. At the same time. how- poverty. Lending. economic and sector work. ever, steps must be taken to provide alternative and associated technical assistance is aimed at employment, or some social safety net. for realizing this goal. Central to the Bank's over- those displaced by such reforms. all approach, however, is the reduction of pov- Trade imbalances. East Asia is currently erty. In fiscal 1994. twelve projects, valued at running substantial trade surpluses with other $1,035 million had specific poverty reduction trading partners, which is neither desirable or components and were included in the program sustainable. Although regional levels of protec- of targeted interventions; that amount was tion are currently relatively high, reductions in up S391 million from last year's total (eight tariff levels (on a nondiscriminatory basis), projects worth $644 million). During the year. now under way. are projected to increase pen- one poverty assessment was completed. bring- etration of foreign products and lower sur- ing to six the cumulative total fat the region. pluses while boosting the region's growth and welfare. With the region expected to provid: Supervision-Next Steps about half the incremental growth in world The Bank. in accordance with the recom- trade to the year 2000, this is a priority reform mendations of the 1992 report of the Task area. The Bank is advocating that East Asia Force on Portfolio Management, is undertak- become a more active participant in global ing more regular supervision of all projects to trade discussions. reflecting the region's rise as monitor the quality and effectiveness of imple- a major importer and exporter. mentation. In addition. reviews are conducted Institution btuilding and strengthtening. The annually or biennially of country project per- need for expanding competent management formancc generally. Management of projects across most areas of development is emnerging has become computerized. and field offices are as a major issue in East Asia. Whether in pol- now taking a more active role in supervising lution monitoring and control. design and im- projects. The region expects to supervise some plementation of monetary and fiscal policies. 300 projects a year over the next three years. or traffic-management planning and regulation. Though portfolio performance is strong. ex- effective institutions are essential. The Bank is tra attention is needed because newer and less assisting countries in a range of fields to estab- experienced member countries-in terms of lish or strengthen such institutions. economic and institutional strength-mak-e up Bank Activities in the Region a growing share of the portfolio. The complex- Bank Activities in the Region ity of projects also is increasing. with some Past lending. The World Bank has been ac- having many components (flood control. tively involved in lending and policy guidance power generation. irrigation, and complete re- in the region since it made its first loans to settlement packages, for exampic). and some Thailand (for railways. ports. and irrigation) in applying to several provinces in a single coun- 1950. Japan was also an early borrower and try. now stands as a monument to successful eco- South Asia 95 South Asia South Asia is a region full of contrasts. On percent of South Asian men and women, re- the one hand, its economic potential is consid- spectively, were literate-and low school en- erable. During the 1980s. the rate of economic roliments and high drop-outs. Ncarly half of growth in the region was 5.2 percent a year. the region's children do not complete primary compared with 3.9 percent among all low- school. income countries (excluding India and China). Its growth was exceeded-albeit signiricantly The Challenges of Development so-only by that in East Asia and Pacific. The Gulf crisis of 1990-91, coupled with po- Progress in reducing fertility led to annual litical upheavals in the former Soviet Union growth. in per capita terms. of nearly 3 percent (which sharply diminished traditional export during a period often referred to as the "lost markets). exposed major weaknesses in the decade" in many other regions of the world. development path that countries of the region On the other hand. South Asia is also char- took in the 1980s. This was demonstrated for acterized by widespread poverty and unaccept- India in 1991, when, as a result of the Gulf ably low standards of living for many of its crisis-induced oil-price shock, a severe people. While accounting for a fifth of the balance-of-payments crisis ensued, and gold world's population, South Asia is also home to reserves had to be pledged to avoid a disrup- nearly half the world's poor (estimated at 390 tion in debt servicing. Pakistan has thus far million persons).' Regional per capita income avoided the same sort of crisis, but its reserve currently averages $310, and, with the notable position needs strengthening, and the govern- exception of Sri Lanka and several states in ment has been slow to bring chronic fiscal def- India, social indicators are poor. Life expect- ;cits under control. Other countries remain ancy is lower than in any other region except heavily dependent on concessional funding and Africa; of every ten children born, at least one arc thus vulnerable to external shocks from an is expected to die before the age of one. Prob- environment in which aggregate aid is unlikely lems of poor health and high rates of malnu- to expand and competition for scarce funds is trition are compounded by low levels of becoming increasingly strong. literacy-as of 1990. only 45 percent and 31 While rates of growth in the 1980s were high. they were not sustainable. Progress at reducing poverty was most rapid in the early 1980s. but the pace moderated in the latter part of the de- Table 5-7. South Asia 1992 Population ade. in large part the result of the worldwidc and Per Capita GNP "f Countries that slowdown in economic growth. The fundamen- Borrowed durmg FLsc Years 1992-94 tal challenge facing South Asia today is how to -lt-r capita continue the high economic performance of the EbpuhtioD GNF"apD previous decade with concomitant rapid and Country (millions) (US dolUT) sustained reductions in poverty and improve- ments in social indicators. A sustainable Bangladesh 114.4 220 growth path for the 1990s must be based on Bnhutn I.S 180 small fiscal deficits. a sustainable balance-of- India 883.6 310 ~~~payments outlook, and improved environmen- Nepal 19.9 170 tal quality. Countries of the region-be they Paistan 119.3 420 small. island economies like the Maldives or Sri Lanka 17.4 540semi-industrial giants like India-face three NorE: The 1992 estimes of GNP per capita presented above are from the "Wodd Development Indicators" sec- tion of World Developmen: Report 1994. 'As estimated from Chen. Shaohua. Guarv Dart. and Mar- a. Estimates for mid 1992. tin Ravallion. "is Poverty Increasing in the Developing b. World BSnk Atlas methodology, 1990-92 base period. World?" (Policy Research Working Paper numbnr 1146. June 1993). 96 1994 Regional PerspectIes- major challenges in ensuring continued pace has been uneven, typically reflecting progress through the 1990s: broader political economy issues and electoml First, to deepen economic reforms in order cycles. Recent progress is most evident in fis- to attain high growth and greater economic re- cal developments and tax reforms, external silience; policies, and financial reforms. Second, to broaden and furtheraccelerate ef- In the public sector, the primary focus is on forts to reduce poverty and improve living structural reforms to underpin medium-term conditions-as East Asia has shown can be fiscal adjustment, particularly tax reform and done; and -expenditure reduction and restructuring. In the Third, to better manage the environment to area of tax reform, India has made significant ensure sustainable development. progress in removing several tax-induced dis- tortions. Measures set out in the fiscal year Deepenig Reforms - 1995 budget continue tax-reform progress by Two themes have characterized until re- broadening the tax base and reducing the dis- cently the development approach of most persion of tax rates. Excise taxes were stream- South Asian economies: a strong economic lined, with many being shifted from specific to role for the state and relatively inward-looking ad valorem rates. Taxes on corporate income, development strategies. The broad consensus as well as on capital gains, were also reduced. in development thinking-borne by the suc- Progress continued in Nepal, Pakistan, and Sri cesses and failures of past decades-is that Lsnka towards moving to a fuill-fledged value- countries do better, both in generating growth added tax, and Pakistan made important and reducing poverty, with more market- progress in broadening the tax base by intro- friendly policies and outward-looking strate- ducing an agricultural income and wealth tax. gies. While there is general agreement in South On the fiscal side, Pakistan's political tran- Asia about the direction of needed reforms, the sition in 1993 contnbuted to a deterioration in Tabk 5-8. Lending to Borrowers in South Asia, by Sector, 198544-- (.illionof US dollars; fiscl years). . .~~~~~~~~Au avenge. Sea" :19- 190 1991 [992 1993 1994 Agriculture 943.9= 668.0 773.0 346.1- 48D.7 387.8 Energy Ol landgas . 287.2- - 7352 330.0 - - Power 982.0 1,012.3 - 200.0 730.0 960.0 230.0 Environment -14.7 Human Resources - Education- 133.1 -580.8 307.1 145.6 339.0 220.0 Population, health, and nutrition 65.6 192- 3885 377.5 827.0 233.1 -Socialsector - - - . - - Industry and Finance Industry 202.0- 300.0 528.0 5- - 203. Finance 3448: 375.0 123.5 28.4 -6.8 Infrastructure and Urbai Development .Telecommunicadons 93.4 - - 7.0 55.0 - - Transportation --: ,:,',' 5310.9 1915 178.9 306.0 120.0' 491.3 Urban developmnt 248.1- 246.0 Water supply and sewerage A 97.4 89.9 306.6 - 208.2 -MiningandOtherExtractive 117.6 - - - 12.0 ,Multisector, ,107.9 94.4 7.0 6552 403.5 - FPublic Secor Management - - - 25.0 - 296.8' Tourism - .- Total 3,939.3 3,504.4 - 3,604.8 2,998.8 3,416.2; '2,370.0 O-f wichI 2,465.4 -1,725.5 1,540.1 1,348.0 1,145.0- --:474.0 IDA 1,473.8 -1,778.9 2064.7 1,650.8 2,2.2 '1896.0' Numberof opeaons -32 - 26 30 24 26 ,-19I Nam Details may not add.to totals because of rounding. -Zero. South AsM. 97 A Nepatese woman sorts recently thtreshed gratn in a remote village whzere mechanized labor has yet to make lnroadrs the fiscal deficit, which rose to a record high 1994, however, the government announced 9.5 percent of gross domestic product (GDP).' that it intended to privatize fift-one industries The caretaker government moved rapidly to by the end of the calendar year. Over the past strengthen the fiscal position, control mone- year, Nepal either privatized or liquidated tary expansion, and reduce the balance-of- seven (out of fifty-one) enterprises earmarked payments deficit. The rupee was devalued, and for divestiture. measures were enacted to contain spending Developing a leaner and more efficient pub- and increase revenue- FLscal adjustment has lic sector is only one part of the reform agenda. continued under Pakistan's new government, A dynamic private sector has an important leading to a notable reduction in the fiscal def- complementary role to play to ensure sus- icit in the second half of 1993. Fiscal stability tained, high-quality growth. While notable ad- continued in Bangladesh- Although buoyant vances have been made in recent years, much revenues helped increase public savings from 2 still remains to be done to improve the envi- percent to 2.4 percent of GDP, the expected ronment for private sector development in the increase in public investment lagged as a result region. In. addition to continued public enter- of continuing delays in project implementation- prise reform and privatization, infastructure In Sri Lanka, a reduction in current expendi- must be expanded and measures undertaken to tures led to positive public savings for the fist improve the overall business .environment time in many years. In India, however, fiscal through deregulation, further reductions in slippage occurred: The central govermment trade bamers, exchange-rate reforms, and fi- deficit widened from 5.6 percent of GDP in nancial sector development and integration- 1992 to more than 7 percent in 1993. Forty per- aU key enabling factors necessary for private cent of the increment in the deficit can be at- sector development. tributed to shortfalls on the revenue side, while Countries of the region continued to pursue 60.percent was the result of an overshooting of more outward-looking strategies through trade spending targets. liberalization and exchange-rate reforns. In Progress was slow in the area of privatization and public enterprise reform. While the priva- 7 IW fSW ear oftheregion's countries vary widely. tization of small and medium-scale enterpnses Year-specfic numbers in this section. therefoe, wiyre, continued bisidy in Sri Lanka, Pakistan's po- spond roughly,;uuIess otherwise indicated. to calendar. litical transition slowed the process. In April ycars. South Asoa 99 Table 5-9. World Bank Cs, Disurmut, and Nit Transfer itn South Ads, 19-94.-- CWM or US drs; fscal yeasw start ~~~start stat start Item 1994.1994 1094 1594 19941 90-94 19 9 1990- 1994 1994 1990-4- UndisWxed commkcer.ts 10-3,4 2,793 1,23 .15,891 Comaitineuts 929 9,788 742 3,238 597 2021- 2,370 16,134 Grass disbursemens 1,716 9,793 54- 2312 -360 721 -2,768 15,214 Rqeaymnts - 963 3,S70. 194 685- 33 -110 . 1.211 4,448 Netdisburs_ents 753. 6,2 345 2,127 327 1,612 1,558 10,836 Intest and cmus 838 3,833 215 A7S 40 174 1,114 4,980 Net tansfer. -85 2,390 130 l,252 287 1,438 .44 5,856 * NOTE: Didzursaus ftu te IDA Special Pl a ided. The eo.es shown A hn.ie whUe at those wbt the beues. - no . . dpo.dic orpblylysnannrd hy_-u dd*b Ded5j my no,M to feb . becusowdbe, ,,-. findinghas becnincreasedforendemic disease- poverty-reducing economic growth. This controlprograms.InSriLanka,stepshave been growth, superimposed on a rapidly growing taken to improve the augeting of income- and urbanizing populaion, inevitably wil put. trser and social safety net programs. more pressure on air, water, and land- re- The role of local governments isepandi sources. Problems are already apparent in and a more hospitable environment in which terms of increased levels of air and water pol- nongovemmental organizations (NGOs) can lWtion, contamination by toxic wastes, soil em- operate in the region is being ceated. Bang- sion, land degradation, and deforestation. In ladesh is in the midst of implementing a new addition, the envionment is adversely affected local goverment structure, with the objective in many countries by the presence of incentive of increasing grassroots- participation in. the rcgimes that encourage intensive use of higb- design and implementation of programs to de- polluting energy, inefficient use osurfice wa- velop hulman resources and local iv&a=c- ter and groundwater, underinvestment in tu. District elections have been held; sub- sanitation and waste manageme, and, We- district development coordnating mmittee quate potetion of soils and forest established; and the entie local government Protectng the natual resoures of the region structure is cxpected to be in placc by mid is a complex and longterm proce. Govem- 1994. Governmens' attitudes towards NGOs mnes face difficult policy dilemmas as they have become far more positive over the past search for ways to acceate growth and en- severd years, and the region is host to some of sure environmental sustainability. Some the world's best-ktuwn NGO initiatives, such pogress has been made in recent-years in ad- as Bangladesh's Grameen Bank, the Bang- dressing these issues. National eavirmental ladesh Riral Advanement Committee, India's action plans (NEAPs) were completed and Self-Employed Women's Association, the Aga openly debated in Sri Lanka in 1991, and in KXan Rmal Support Projcct DP) i Paid- Ind, Nepal, and Pakistan m 1993. These doc- stan, and Sri Lanka's Sarvodaya as wet as a uments, together with follow-up workshops in wide rang of lesser-know but equally mpres- each country, provide a base for pric zijng sive NGO efforts. These diverse- progams donor assistance. Parid to the NEAP pro- have grat potental for helping to reduce pov- cess, explicit steps have been taken to erty and improve living conditions in the re- strengthen environmental managment. For gion. Some governments have begun to example5 new ordinances have been passed in replicate elements of NGO progams: For ex- Paksn that mandate higher environmenal- amplc, the government of Patan has recently quality standards, decentralized responlsbiiy initiated a National Rural Support Program fr pollution control, and an expansion of the (modeled after the AKRSP), which is desied staff of national and provincial-level environ- to promote community-level self-sufficiencY mental institutions. In India, new nional pol- and reduce poverty. icies have been adopted to combat industrial ,~w~ pollution dtrough both increased regulaitions Ensuring ;tvhvmeaW - and some fiscal incentives. In addition, in L994 South Asia's curent development stategies the government strengthened regulations gov- hold forth the proise of sustained. rapid. and ewmig environmental assesmens, requing, South Asb 99 Table S-9. World Bank Commitments, Disbursenents, and Net Transfers in South Asia, l99O-94 (miflious of US dollaus; fiscal yeas-) India Pakisan Bangdesh TOal region start start stat star Item 1994 1994 1990-94 1994 1994 1990-94 1994 1994 1990-94 1994 1994 1990-94 Undisbursed commitnents 10,374 2,793 1,523 .15,891 Commitments 929 9,783 742 3,238 5 597 2,021 2,370 16,134 Gross disbursements 1,716 9,793 540 2,812 -360U 1,722 2,768 15,284 Repayments 963 3.570 194 685 - 33 110 1,211 4,448 Net disbursements -753. 6,223 345 2,1Z7 327 1,612 1,558 10,836 Interest and charges 838 3,833 215 --875 40 174 1,114 4,980 Net transfer -85 2,390 130. 1,252 287 1,438 .444 5,856 NoTE Disbursements from the IDA Special Fund am includeL The countries shown in the table are tbhse with the laest.- amounts of pubic or publily guarnteed lonWterm debL Detais may not add to totals because of munding. funding has been increased for endemic disease- poverty-reducing economic growth. This control programs. InSi Lanka, steps have been growth, superimposed on a rapidly growing taken to improve the targeting of income- and urbanizing population, inevitably wil put transfer and social safety net programs. more pressure on air, water, and land re- The role of local govermments is expanding, sources. Problems are already apparent in and a more hospitable environment in which terms of increased levels of air and water pol- nongovernmental organizations (NGOs) can lution, contamination by toxic wastes, soil ero- operate in the region is being created. Bang- sion, land degradation, and deforestation. In ladesh is in the midst of implementing a new addition, the enviroment is adversely affected local government structure, with the objective in many countries by the presence of incentive of increasing grassroots participation in the regimes that encourage intensive use of high- design and implementation of programs to de- polluting energy, inefficient use of surface wa- velop human resources and local infiastruc- ter and groundwater, underinvestment in ire. District elections have been held; sub- sanitation and waste management, and inade- district development coordinating committees quate protection of soils and forests. established; and the entire local government Protecting the natural resources of the region structure is expected to be in place by mid is a complex and long-term process. Govern- t994. Govermnents' attitudes towards NGOs menuts face difficult policy dilemmas as they have become far more positive over the past search for ways to accelerate growth and en- several years, and the region is host to some of sure environmental sustainability. Some the world's best-known NGO initiatives, such progress has been made in recent years in ad- as Bangladesh's Grameen Bank, the Bang- dressing these issues. National environmental ladesh Rural Advancement Committee, India's action plans (NEAPs) were completed and Self-Employed Women's Association, the Aga openly debated in Sri lanka in 1991, and in Khan Rural Support Project (AKRSP) in Pakd- India, Nepal, and Pakdstan in 1993. These doc- stan, and Sri Lanka's Sarvodaya, as well as a uments, together with follow-up workshops in wide range of lesser-known but equally impres- each country, provide a base for prioritizing sive NGO efforts. These diverse programs donor assistance. Parallel to the NEAP pro- have great potential for helping to reduce pov- cess, explicit steps have been taken to erty and improve living conditions in the re- strengthen environmental management. For gion. Some governments have begun to example,. new ordinances have been passed in replicate elements of NGO programs: For ex- Pakistan that mandate higher environmental ample, the government of Pakistan has recently quality standards, decentralized responsiblity. initiated a National Rural Support Program for pollution control, and an expansion of the (modeled after the AKRSP), which is designed staff of national and provincial-level environ- to promote community-level self-sufficiency mental institutions. In India, new national pol- and reduce poverty. icies have been adopted to combat industrial pollution through both increased regulations Ensuring Environmental Sustainability and some fiscal incentives; In addition, in 1994 South Asia's current development strategies the government strengthened regulations gov- hold forth the promise of sustained, rapid, and erning environmental assessments, requiring, 100 1994 Regional Pespectes among other things, broad consultation and least for the present. The past year's lending public participation. Many Indian states have program had a strong focus on the poor. Five adopted participatory approaches that utilize operations (accounting for $741.8 million, or31 economic incentives to protect forests and pre- percent of new lending) are included in the pro- serve biodiversity. gram of targeted interventions (rTI), while one adjustment operation (accounting for $250 mil- The Bank's Strategy ror the Region lion) had a poverty focus. The direction of the Bank's lending program During the past year, the region focused on in fiscal 1994 and the underlying economic and three types of portfolio-implementaticn issues sector work were guided by the challenges fac- in an attempt to strengthen, performance and ing countries in South Asia--the need to pro- improve the quality of the Bank's lending port- mote sustained growth, reduce poverty. and folio. First, by giving priority to reducing improve living conditions. In line with these project complexity and ensuring readiness for objectives, a key focus of the economic and implementation, the quality of new projects en- sector work program was on the role of fiscal tering the portfolio has been upgraded. Second, reforms and reforms in the agriculture, infra- actions were taken to strengthen portfolio- structure, and human resources sectors in pro- management practices to deal expeditiously moting sustainable growth and reducing with problem projects and reduce project ges- poverty. Analysis of factors that encourage pn- tation time. Problem projects are reviewed on a vate sector development was also central to the quarterly basis to ascertain the extent of work program, and efforts were made to im-' progress in implementing remedial measures prove dissemination of findings both within the and to recommend andlor endorse restructur- region and more broadly outside. ing as required. Gestation time is being reduced The South Asia loan portfolio includes 242 by focusing on accelexating project start-up, projects and commitments totaling $26.6 billion undertaking mid term reviews of projects to as of June 30, 1994. The portfolio consists pri- provide for early diagnosis and corrective ac- manly of investment loans. The principal tions, and working to ensure that projects close change has been in sectomal composition, as the on time. Third, systemic implementation issues share in lending for agriculture has gradually are being tackled through the identification and dropped while the share accounted for by the adoption of measures to improve deficiencies human resources sectors has increased (from in project funding, procurement, and project an average 5 percent in the period fiscal management. Country-implementation re- 1985-89 to 19 percent in fiscal 1994). views, sectoral supervision strategies, and vig- Bank lending during the past year totaled orous resident-mission support were the $2,370 million, a decrease of $1,046 million principal vehicles for addressing these prob- overfiscal 1993. The decrease can be attnbuted lems. to two factors; first, both the Bank and gov- Efforts to strengthen performance and im- ermments are exercising greater care during the prove quality of the portfolio have been project cycle in order to achieve higher quality- successful: Year-to-year average portfolio per- at-entry for new projects, particularly in com- formance indicators indicate progress in the plex sectors dealing with sensitive issues (such timely start-up of new operations, in decreas- as resettlement and the environment); second, ing the number and proportion of problem a buildup of reserves and an improved balance- projects, and in increasing disbursements on of-payments situation in several countries has investment operations as a percentage of the made adjustment borrowing less necessary, at fiscal year's opening undisbursed balance. Europe and Central Asia 10i Europe and Central Asia The process of transition from centrally ination, as well as by the legal and institutional planned economic systems to market econo- reforms taking place in all of these countries. mies has presented difficult challenges for the. Successfully addressing these challenges will countries of the Europe and Central Asia re- be critical for completing the transition. gion. The economic challenges are complicated In general, the external environment was ad- by the concurrent political and social tansfor- verse during fiscal .1994. Many countries of Central and Eastern Europe, whose economies have been in transition for several years, were Table 5-10. Europe and- Central Asia: : attempting to rebound in the face of continued T19 Population Eur Per Capilt GNP A ia economic slowdown by their major trading 1992 . .-: . . partners in Westem Europe. Such slowdown Countries that BOrrWewd dtunugfleal- contributed in part to a dampening of export Ye 199244 . expansion for countries such as Bulgaria, Hun- Per capita gary, Poland, and Romania. i - - - - .- Populaiot ...... .: - .- ... :-z . ; ..... being eased by flows of private capital invest- 102 1994 Reglonal Pespectives ment and technology from abroad: Hungary re- mains at under 2 percent of the labor force in ceived more than $1 billion in foreign direct Russia, the real level or unemployment is sub- investment (FDI) during 1993; the Czech Re- stantially higher. In many countries, employ- public and Poland were also major recipients; ment and wages in declining industries are and FDI more than doubled in 1993 compared being maintained only through significant cred- with 1992 in Kazakhstan, Estonia, Latvia, its from the banking system. Lithuania, and the Slovak Republic. The introduction of individual currencies, Acceleration of private sector activity ap- which began in fiscal years 1992 and 1993, pears to have been a key component of any accelerated-in Armenia, Azerbaijan, Georgia, turnaround in growth in most countries. To- Kazakhstan, Moldova, Turktnenistan, and day, more -people work in the private sector lTzbekistan, for example. Exchange-rate r- than in the public enterprise sector in the gimes vary across countries, ranging. from a Czech Republic, Hungary. and Poland. fixed exchange rate based on a currency board - Most countries are experiencing rising un- with full reserve backing in Estoniaand Lithua- employment associated with the downsizing of nia. to floating regimes in Kazakhstan, the public sector enterprises. In Central and East- -Kyrgyz RepubLic, and Latvia. ern Europe, open unemployment continued to In Turkey, the many improvements in eco- increase in 1993. In the republics of the FSU. nomic policies and -performance during the open unemployment has emerged more slowly. 1980s have been undermined by a steady dete- However, "hidden unemployment" in the rioradon in public finances in recent years and form of short hours or unpaid leave at the en- deteroration of the external position in 1993, terprise level is growing. In Ukraine, for ex- culminating in a severe currency crisis in Jan- ample, it was estimated at 9 percent during uary 1994. In April, the government unveiled 1993. Although registered unemployment re- an adjustment program focusing on stabiiza- Tabe S-1. Lending to Borrowers in Europe and Central Asia, by Sector, LS5-94- (anls sf US dolws; fisca years) A-1S - ' ~~~~~aveag - - -' Seco ' . 6549 -1990: 1991: 1-lXI 1993- 1994 Agriculre -281.4 263.0 100.0 -155.0 525.4 582m9 Energy. Oil and gas 56.0 - 520.0 246.0 703.0 856.11 Power 238.0 250.0 600.0 270.0 ; - - Environment - 18.0 - Human Resoumces Education 52.8 90.2 250.0 - 67.0 59.6 Population, health, and nutriton 15.0 - - 280.0 91.0 - Social sector - - - - - 10.9 Industry and Finance Industry 289.4 - 100.0 60.0 - 375.0 Fimance 2105 326.0 -710.0 - 55.0. 280.0 Itfstructure and Urban Development Telecommunications 14.0 - 270.0 - 300 153.0 Transportation 200.0 445.0 300.0 - 378.0 352.0 Urban development 30.8 - - 200.0 285.0 171.0 Water supply and sewerage 92.4 198.0 - 32.0 1295 109.6 Mining and Other Extactive Mu-isector - 600.0 1,017.0 691.1 1,245.0 566.3 Public Sector Management 209.2 335.0 210.0 Tourism - _: _ Total 1,480A4 2,190.2 3,867.0 2,1433 3,843.9- 3,726.4 Of which: IBRD 1,480.4 2,190.2 3,867.0 2,102.2 3,7395 3,533.3. IDA - - - 41.1 104.4 193.1 Number of opcrations 12 14 '19 14 30 42 m arcDetails may not add to toals because of tounding. zeo,: ' - - --. O rld C 8 n Ml si a 10 3 : I 0 - -9'. w-f to liv - ..---.- .-.I - - ~:: of d elligs bdir rom uel wtb id adw~ boxcrs. $28inilio~ DA -cedit, 4PProved in fitscai key4 wdtrowdea rkeIgfor(Ofa,, giovenmend kxey dituc Cotanent O currentl nia; and nmass privatizatiOn progaser privati~~jre and th O i aiz eet of ur re adopEed in K a4 dakh tm Polan d gr doam s aerd government : xpendita~ and transfers:Sloveni vatizsti o, E uterPri and Pri vati, on of the at e ~In gneral SetrRfr~eprivatizatwever, has not advanced ueaiiy as cOutnuedto acei- quickly. nRU&Sia, only a few hlave been Priva- Pivageneat ,piajion Pas Ye r~ i n~t o s al-cclel aimed. an spite of a vigorotl marketing effoi craze dur n tg u tthapat ketraheddS f t eeeiv so s E tn a-a able scale Pivatio tin gto sl ee h it reetrrssi 93 scal Prvarj~0~Is essentially cOmplete in although negotiations:aewl~dac o theazec and Slovali pRpubl Hiungary, and some rifty others. Sale aro wel-adv and work- Polad. Sbsta~ prgress has been miade ers has hen sucs ian agmers ofd work- in Albania, the.Baltic states, the Kyrgyz Re- tiswe rcswr aoa,eo ntlmn pbi,Romania, and Russia (see -BOX 5-6). -sal ries were favorabl or993,len However. the proc:11:ess. isol mn t nepton i . esowerenpewithted e o rVtiain cOuntries SUch as Bela-,Uran nd refo ure fbmnt s witashntnui n UZbekstan ass rivatization PrOgrams refformO arekunderwytostremshas acotiuedting gained momentum: The first wave of voucher effrd payreunder yto strngtomen acountriesth privat~ns wascomPleted in the Czech Re- ubro cm erilbank hasm exantril,th publi andSlov lca Rusd ia hse used was cobeg in rapidly, to Over 2,000 in Russia in 1993, fr e- the Czech RePublic Rucahsue acz~ ml. other ia bankngetos have expanded nation of vouche-r Prilvatization and manage. enced Cnoiao Frempeinextn mentfmpinee buyou~on a very large scale: th oa Ol nu aberofbnk F as dex rep s tbyial 'More than 8,000 medilnm.scale and lag hsne tiandmepende anks htiasi0 of he' baniEs Owndoidualalenstatee-W ing sector was initiated in Latvia, Lithuania~ o w ned in d ust. enterpr~~ were Privatized and Poland. In the fi r tcpin 93 n totid o l ml service en- tizations in the Czech RPulc n nSova- eprsswere Privaeed by the end of 1993. Ritebgetcmerublic banks wereova Investment funds participating in thkochr ria, th briggestc auctions exceeded 400 in the Czech Republic Arneo praj a enpti lc and Slo alc a, 00in uss a, nd 00in Lithua- to addre ss the le gacY o ro uerorm ingm ~ i loans~~~~~~~~~~ 104 1994 Regional Perspecties Box 5-. Privatization Proge In the Rfnus Federatin. Progress in pivatization has been the centerpiece significantly restructured. 'Privatization has ac- of the government's achievements in structural ceerated, however. with-the recent removal of - reform of the economy. The Russian privatization- resuictions on buying and selling-of.agriculunu-l program has privatized a larger number of enter- land. Under a pilot program in :the, Nizhny- prises than any other program in the world. As of Novgorod region currently beingpromoted bythe March 1994, more than 60 percent of the indus- International Finance Corporation,- the private' trir! workforce was employed in privatized enter-' sector investment ann:of the World Bank, ma- prises. More than 12,000 enterprises, were. bers of collectives.can elect to.divide their faiu privaized viavoucherauctionbyJune 1994when and then bid: on parcels- of land.to workindivid- voucher privatization was brought to a close. .,ually or in partnership' with other owaersi.-By. *This will sill. leave several thousand large and June 30, 1994, -some six collecive famsin the medium enterprises to be privatized through ci-. region had been'sold:under the. procram.. In-. ther cash auctions, investment tenders, or other March 1994, the govenment commited itself to.. special angements. expanding the program .beyond -Nizhay : Small-scale pnivatization has also kept pace, Novgorod, and the.IFC is now moviangto hdp the- though- with significant regional variation; cur- country implement the expanded program; rently more than 70 percut of all small-scale r-r Housing privatization bgn e1992, with tiil, catering, and service enterprises have been more than .l milliozi-units in Moscow and-mor privatized. - than 25 percent of eligible:units nationwide hay . Many state and collective fams have been ing be caprivatizedto date; mosthavebeengiven-, iechnically prized, though they remain under to occupants ukder a:nationwide frmework of collective leadership, and most have not been providingihousingdon asgiveaway basis the portfolios of,commercial banks-a legacy The speed and comprehensiveness with that has undermined the dual objectives of re- which borrowers have embarked on a reform structuring existing enterprises and providing program vary greatly, as do the initial condi- adequate credit to emerging enterpises. A de- tions facing their economies. As a result, the centralized approach, relying heavily on bank Bank's assistance is tailored to match-individ- leadership in restructuring, has been put into ual country circumstances. However, some place in Poland; it is being complemented by a features of the a4justment effort have been special support mechanism for handling large or common across countries. The start of transi- localy sensitive loss-makers. In Hungary, more tion has usually taken place in the midst of emphasis has been placed on strhing and strong output declines. At this stage, the Bank enforcing bankruptcy laws. Elsewhere-in Al- has quickly provided balance-of-payments sup- bania, the Kyrgyz Republic, and Romania, for port to help redress such declines. These have example-more centralized approaches have been the so-called "rehabilitation' loans. Dur- been introduced, in which a subset of problem- ing fiscal year 1994, such rehabilitation opera- atic enterprises has been isolated from the rest tions were approved for Belarus, Kazalchstan, of the banicng system. and Moldova; simiarly, an economic recovery loan was approved for Slovakia and FYR The Bank's Stategic Objectives Macedonia. These operations are comple- The Bank's operations have rapidly evolved mented by institution-building and technical to respond to the diverse needs of its borrowing assistance operations essential for the early de- countries. The former Yugoslav Republic velopment of institutions needed in the devel- (FYR) of Macedonia fulfilled requirements opment of markets. pursuant to resolutions of the Bank's executive The Bank also has helped finance selected board providing for succession to membership critical infrastructure-maintenance invest- of the Socialist Federal Republic of Yugoslavia ments to avoid deterioration of key infrastruc- and became a member of the Bank; a financial ture In Kazakhstan, a project was approved to workout program was developed under the restore public transport services, and in Esto- leadership of the Netherlands that cleared that nia and Russia, programs of highway rehabili- country's arrears to the institution; and an eco- tation are being supported. In some cases, nomiic recovery loan to the country was ap- output collapse has been compounded by nat- proved in February 1994. Lending operations ural disasters to which the Bank has re- were also initiated in Belarus, Croatia, Kaza- sponded, including a drought-recovery loan for khstan, Slovenia, and Uzbekistan, as well as Moldova in fiscal year 1993 and an earthquake- in the newly formed Czech Republic and Slb- rehabilitation credit for Armenia in fiscal year .vakia. 1994. Europe and Central Asa 105 Table 5-12. World Bank Commitments, Disbursements, and Net Transfers in Europe and Central Asia, 1990-94 (millions or US dollas; russ years) Russia Poland Turkey Tota region -strt . - sstart Start start ltem - 1994 1994 1990-94 1994 1994 1990-94. 1994 1994 1990-4. 1994 1994 199094. Undisbursed commitments 457 .2,610 3,176 9,478 Commitments 1,520 2,890 146 3,657 100 2,219 -3726 15,971 Gross disbursements 284 587 307 1,204 386 2,084 1.980 7,666 Repayments : - - 753 3,414: 1,149 6183 Net disburements. - 284 5-87 307 1,204 -367-1,330 831 1,483 Interest and chargsm 25 26 73 146 422 -2,395 - 817 4,113 Net transfer 259 561 _234 1,058 - -789 -3,725 - 14 -2,630 Non: Disbursements front the IDA Special Fund are included. The countnes shown in the table are those with the largest amounts of public or publidy guarnteed lon4term debt. Details may not add to totals because of rounding. - Zero. Suipport for privatizarion andfinancial sec- while another project is providing for institu- for development. A major focus of Bank sup- tional strengthening and systems moderniza- port is the privatization and restructuring of tion for those banks. The Bank has also public enterprises and complementary finan- approved an onlending facility in Romania to cial sector refonn and development. Technical finance export and industrial investments by assistance is being provided early in the pro- the private sector. cess throughout the region, particularly in the Public enterprise reforms, including privati- former Soviet Union. In Kazakhstan, a comr- zation, are also important for the long-run re- prehensive program was developed with close duction of public sector deficits and improved Bank collaboration, with implementation being efficiency in Turkey. Here, the fiscal year 1994 supported under a technical assistance loan ap- lending program supported a build up in insti- proved in fiscal year 1994. tutional capacity for accelerated preparation Bank operations were also approved during and implementation of the government's priva- the past year to strengthen financial infrastruc- tization agenda; this support included a safety ture in Belarus, Kazakhsu, and Uzbelistan. net program that wil alleviate the impact of For example, support has been provided for state-owned enterprise downsizing and dives- the modernization of the interbank payments titure on displaced workers and their families. system, essential for improving the trade and Infrastructure, energy, and environment. In payments situation. Twinning arrangements countries where structural transformation is are being financed to strengthen commercial well advanced and the public finance situation and savings banks-their success in Poland has is stable, sectoral lending has intensified to al- contributed to the ability of the commercial leviate constraints to the growth of the private banks to clean up their portfolios. After some sector. Fiscal 1994 evidenced active support to progress is made, Bank support has been ex- the oil and gas, telecommunications, and trais- panded into sector adjustment lending to portation sectors. deepen sectoral reforms in this area. The Bank During the past year the Bank continued approved an enterprise and financial sector ad- work begun in 1992 at the request of the major justment operation for Slovenia to further de- indusilized countries (the G-7) to develop velopment of the private sector. After initial energy strategies in certain countries of the re- balance-of-payments support to the Kyrgyz gion with high-risk. Soviet-designed nuclear re-. Republic in fiscal 1993, an adjustment opera- actors. This effort has been carried out in close tion is now focusing on privatization, reducing collaboration with the European Bank for Re- the financial burden stemming from large loss- construction and Development, the European making enterprises, and enhancing the envi- Investment Bank, the International Energy ronment for private sector development. Agency, the {;-7, and the countries themselves. Under certain circumstances, the Bank has Regional strategies and country-specific- also provided some financial intermediation studies-Lithuania and Ukraine this past fiscal lending. The Russia Enterprise Support Project year-are being developed to. lay out an inte- supports initiation of term lending to private grated approach to power sector development enterprises from a core of commercial banks, and nuclear safety. The Bank is playing its part 106 1994 Reglionl Perspectives in support of the necessary policy reforms and Albania. In fiscal year 1994, a Women in De- the financing of conventional power invest- velopment Fund was established in the Bank's ments, while working in a coordinated manner Europe and Central Asia regional office to sup- with other financing sources for nuclear safety port work in new areas of inquiry on gender and nuclear power. and transition. National environmental actions plans The Bank also is supporting the rationaliza- (NEAPs) were completed in fiscal year 1994 for tion of social sector expenditures and preven- Belarus and Ukraine-adding to the eight com- tion of the deterioration in key social services. pleted earlier-and work began on NEAPs for Work on the health sector in Russia was car- the Kyrgyz Republic and Moldova. Based on ried out during the year, laying the groundwork these strategies, Bank assistance can be coor- for the development of lending operations. Ed- dinated with other financing sources to provide ucation projects were approved for Albania financing for conventional power investments and Romania. while supporting policy reforms critical for cost-effective energy conservation and public Focus on Portfolio Quality safety. The second oil rehabilitation project in The institutional and economic flux charac- Russia includes a component to prevent nega- terizing countries in transition calls for a sharp tive environmental effects from the project and focus on portfolio quality and effective imple- to begin remedial actions to address past dam- mentation. Among new member countries, im- age. In Bulgaria, the Water Companies Re- plementation is complicated by the lack of structuring and Modemization Project is familiarity with Bank procedures. Procurement financing investments in wastewater treatment and disbursement, in particular, present diffi- that will reduce river pollution as well as con- culties. The Bank is helping to develop efficient tnrbute to the clean-up of the Danube river and counterpart units and is establishing project ac- the Black sea. In most of the former socialist counts and audit procedures. Thus, in Mol- countries, actions to establish clear rnles on en- dova, procurement and disbursements have vironmental liability have been included in op- been accelerated for two projects approved in erations supportng privatization. Four Cental fiscal 1993. It is also continuing to prepare and and Eastern European countries have received translate standardized bidding documents, assistance from the Global Environment Facil- adapted to local conditions, to promote the re- ity for biodiversity conservation, mainly to im- form of public procurement regulations prove transboundary protected areas, and through technical assistance or Institutional good early progress on implementation was Development Fund grants, and to hold pro- made during the fiscal year. curement and disbursement seminars. Poverty and socia sectors. To promote em- The Bank is also quickly incorporating les- ployment opportunities and reduce or prevent sons tearned into project design. Efforts are be- poverty, recovery of output and job creation ing made to keep project design simple and are essential. The Bank's programs, including limit project components. Given the unprece- support for enterprise restructuring, private dented situation facing many borrowers in the sector development, and deregulation of prices region, the Bank puts a premium on its ability and marketing channels, are critical in this re- to be flexible and adaptable. Institutional de- gard. At the same time, however, social pro- velopment is an imperative, and almost all tection must be provided for those unable to projects have significant institutional develop- take advantage of these opportunities. Im- ment components. - - proved targeting and rationalization of social Field offices are playing an increasing role in services remain crucial. To facilitate targeting effective project implementation, in addition to of social benefits to the neediest and the devel- facilitating policy dialogue. Two new resident opment of policies aimed at poverty reduction. missions were established during the past the Bank is supporting collection of household year-in Belarus and Kazakhstan-bringing survey data and careful in-depth analysis. In the total in the region to fourteen. The number fiscal year 1994, apoverty assessment was car- of field-office staff has grown as well, and ried out for Poland, and poverty-assessment higher-livel staff-including those who are lo- work was initiated in several countries, includ- cally recruited-are increasingly involved in ing Russia. During fiscal 1994, an operation to implementation assistance to the borrower, in- improve the social safety net was approved for cluding procurement administration. Latin Amerlca and the Carbbean 107 Latin America and the Caribbean The Latin America and the Caribbean pan- erage growth that took place, during the post- -orama in 1993 shows large disparities in growth debt crisis years. Average growth of 3.5 per- rates across countries, a definite downward cent in 1993 compares favorably with the 2.8 trend in inflation in most countries, continued percent achieved in 1992. capital inflows, significant expansion of re- The region's growth figures are greatly influ- gional trade, and a growing perception that in- enced by Brazil's performance. If Brazil were vestment in social and economic infrastructure excluded, the region's growth record worsened must be increased. in 1993 with respect to the average of the pre- During 1991-93, the region grew, on average, vious two years, dropping from about 5 percent by 3.2 percent annually, almost double the av- to 2.8 percent; The fail was due mainly to the poor performance of Mexico and Venezuela. Some Central American countries, however, Tablk 5413. Latin Aumeica ad the continued to show strong growth: Panama (7 Caribbean: 1992 Populafion and Per percent), Costa Rica (5.6 percent), and El Sal- Capita GNP of Comtnes that Borrowed vador (5 percent). In South Amenrca, Argen- durg Fiscal Years 199294 tina, Chile, and Colombia also experienced growth of more than 5 percent. --- -Per cmla Until 1993, the Caribbean countries had ex- Powulatiot, GNpW Country (millions) (US dolin) penenced a- decade marked by high rates of growth (6 percent on average). During 1993, Argetina 33.1 6,050 however, growth slowed in some countries Barbados 0.3 6,540 (particularly in Jamaica) and was elusive in Belize 0.2 2220 others-in Haiti, Suriname, and Trinidad and Bolivia - - 75 - 680 Tobago, for example. Only Guyana continued Bhl 153-9 2770 to record a high growth rate-7 percent, fol- Choie 13.6 2,730 lowing 8 percent in 1992 and 6 percent in 1991. Colombia 33A4 - 1s330 The Dominican Republic was not able to con- Costa Rica 3.2 1,960 tinue at the fast pace of the previous year (7.5 cador 11.0 1,070 percent), falling to 3.5 percent.. El Salvador 5.4 The sluggishness of growth in the Caribbean Guatemala - 9.7 980 means that the efforts to improve competitive- Guyana . - 0.8 - - 330 ness were not sufficient to cope with the rap- Hoidu 6.7 - idly changing external scenario. The key - Honduras .54 58 challenges are to find ways to offset the decline Jamica- 2.4 I'M in official flows and the erosion of preferential Mexico -85.0 ' 3.470 trading arrangements, particularly for bananas Nicaragua . 3.9 340 and sugar. Panama 2.5 2,420 The slowdown in the rate of growth in many Paraguay - 4.5 1,380 Latin American countries appears to be mainly Pun - - 22.4 950 - - cyclical. It is partly the result of the recession Trinidad and Tobago 1.3 - 3,940 in the industrialized wodld, which reduced de- Uruguay 3.1 3,340 mand for the region's exports. The 4.5 percent Venezuela 20.2 2,910 fall in the region's term of trade during 1993 Nora The 1992 estimates of GNP per capita prseted reinfrrced the effect of this recession. In addi- above art fnomnthe "Wod Devclopment icato"sec- tion, some countries that recently adopted re- o. ofWrldDavelopme R9eport 199. forms are still adjusting to a new set of widely a. nmates mid 1992. :differeni rclative prices. Adjustment takes -b.World Bank Attn methodolorDrlgy. 199042batime, and the costs of resource realignment c. Estimated as bow4nome ($675 or Iess) . must be borne before benefits are reaped. Latin Amercao and heCtbbaM 109 ~~~~~~~ In Peru,female laborers work on a water-diversnion scheme, lfiing a canal that will cany wetrfrom the.Andes so their village. Such projects are vilage-based and tend to ivolve panripationfrom wonen. those of the nonindipnous populations. An 'ma- gentina, Bolivia, Mexico, and Venezuela, portant correlate of poverty nong indigenous while Mexico has signed agreements with grps is a lack of education, which is substan- Costa Rica and Venezuela-Colombia. Guate- tiafy below that of the general population. mala and El Salvador have entered into a re- The Bank's commitment to development and gional free-trade agreement, which will also to poverty reduction go hand in hand. In gen- involve Hondumas. Bolivia, Colombia, Ecua- eral, trends in income equalitY appear to have dor, Peru, and Venezuela have signed a multi- been significantly influenced by trends in per lateral trade agreement. Trade has been opened capita income; thus, the higher the growth in up in most CARICOM countries (with the ex- income per capita, the lower the inequality. In ception of Antigua and Barbuda, and Belize), Latin America, as elsewhere, the Bank's ef- the fir stage of a common external tariff has forts to reduce poverty follow a twopronged been implemented, and nontariff trade-barriers . approach: promotion of broad-based economic continue to be reduced. Representatives of growth and the larpting of assistance to poor twenty-two countries and several dependent and vulnerable groups. territories in the Canrbbean basin -have con- dluded the frst round of talks aimed at creating The Americas: Trade and Integration a new regional trading bloc. One of the most significant economic fea- The NAFrA is one of the world's most com- tures of the late 1980s and early 1990s has been prehensive free-trade pacts (short of being a the dramatic inacement in intaegional trade. common market) among regional partners. This was due, first, to trade bealiaon and Some provisions tookplace on January 1,1994, second, to regionalbilateral trade agreements- the day the agreement went -into effect, and MERCOSUR (Argentina, Brazil. Paraguay, others will be implemented over a perod of and Uruguay), CARICOM (the Caribbean five, ten, and fifleen years. Special features in- Common Market) with Colombia and Venezn- dude: the opening up of service sectors, par- ela, and other initiatives. These initiatives are ticiuarly in finance, land transportation, and likely to be replicated through the North Amer- telecommunications; the immediate conver- ican Free Trade Agreement (NAFTA), as well sion of key agricultural restrictions into tariff- as through additional bilateral agreements. rate surcharges (which wfll be phased out in no Chile has signed bilateral agreements with Ar- more than fifteen yearn); the dismantling of tra- 4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ LaHln Amesco and the Cadbbean 109 b.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ -I.n Peru, female laborers work onv a water-diversion scheme, I;ning a canal that will carry waterfrom *he.Andes .o tieir village. Sucltprojects are village-basoJdGndrendto involve participarionfrom womef. . - .~~~~~~~ - those of the'nonindigenous populations.-An im- -gentina, Bolivia, Mexico, and'-Venezuela, portant correlate of poverty among indigenous whilc Mexico has'-signed agrcements with groups -is a lack of education, which is substan- Costa Rica and Venezuela.-olombia. Guate- tially below that of the general popuIation. ' mala- and El Salvador have 'entered into a re- The Bank's cornmitment to development and gional free-trade agreement, which will also to poverty reduction go hand in hand. In gen- involve Honduras. Bolivia, Colombia, Ecua- eral], trends in income incquality appear to have dor, Peru, and Venezuela have signed a multi- ueen significantly influenced by trends in per lateral tradceagreement. Trade has been opened capita income; thus, the higher the growth in up in most CARICOM'countries (with the ex- income per capita, the lower the inequality. In ception of Antigua and Barbuda, and Belize), Latin- America, as elsewhere, the Bank's cf- the fsnt stage of a commori external tariffl has forts to reduce poverty foliow a two-pronged been implemented, and nontariff trade barriers approach: promotion of broad-based economic' continue to be reduced. Representatives of growth and the targeting of assistance to poor twenty-two countries and several dependent and vulnerable groups. ter-ritories in the Caribbean basin -have con- - d~~~~~~~~~cuded the first round of talks aimed at creating The Americas: Trade and Integation - a new regional -trading bloc. Onc of the most significant economic fea- The NAFIA is one of the world's most com- ture of the late 1980s and early 1990s has been prehensive free-trade pacts (short of being a the dramatic increment in intrategional tradc. common market) among regional partners. This was due, first, to trade liberalization and 'Some provisions took place on January 1, 1994, second, to regionalbilateral trade agreements- the day the agreement went -into effect, and MERCOSUR (Argentina, Brazil. Paraguay, others will be imnplemented: over a period of and 'Uruguay), CARICOM (tl;e Caribbean five, ten, and fifteen years. Special features in- Common Market) with Colombia and Venezu- clude: the opening up of service sectors, par- ela, and other initiatfives. Thesc initiatives are ticularly in finance, land transportation, and likely to be replicated through the North Amer- telecommunications; the immediate conver- ican Free Trade Agreement (NAFTA), as well sion of key agricultural recstrictions into tariff- as through additional bilateral agreements. rate surcharges (which will bc phased out in no Chffe has signed bilateral agreements with Ar- more than fifte-en years); the dismantling. of tra- .~~~~~~~~~4 - tL~~, .; : - - 110 1994 Regional Perspectives ditionally high barriers by the United States increased domestic expenditures and will pose and Canada on imported textiles and apparel; important challenges if they slow down9 This the introduction of innovative dispute- slowdown process will require significant rela- settlement procedures; and the establishment tive price adjustments that may be difficult to of a mechanism to address cross-border envi- engineer in countries with fixed or quasi-fixed ronmental issues. The NAFTA's long-term ef- nominal exchange rates. The possibility exists fect on Mexico will have major secondary that a reduction in capital inflows might be an- effects on poverty reduction, the environment, swered by increased trade protection, thereby human resources, and rural/urban develop- negating the effects of the recent opening up of ment. international trade, which has been the back- The most notable increment in intraregional bone of the region's reform effort. trade has occurred in the MERCOSUR coun- The key to the enhancement of the region's tries. From 1987 to 1993, the share of in- competitive edge is increased productivity. tramember trade increased from about 22 This requires further trade liberalization, fur- percent to almost 40 percent in Argentina; 13 ther deregulation of domestic markets (in par- percent to 23 percent in Brazil; and from about ticular, labor markets), and improvements in 30 percent to some 48 percent. in Uruguay. the supervision of the deregulation process. MERtCOSUR has also changed the trade pat- Deeper trade liberalization would increase pro- terns of its partners. In 1990, for instance, the ductivity as economies shift their resources to Brazilian government ceased providing incen- areas of comparative advantage, and the region tives to its wheat producers, thus giving a boost absorbs state-of-the-art technology. Further to imports of cheaper Argentinian wheat; it is domestic market deregulation would also make expected that Argentina will, eventually fill economies more efficient and, consequently, about 70 percent of Brazil's wheat-import more competitive. In Peru, for example, it is needs. Argentina's substantial exports to Bra- estimated that labor productivity in the manu- zil during 1993 helped reduce its bilateral trade facturing sector has increased by about 21 per- deficit from $1.7 billion to-$600 million. cent since the beginning of the 1990 reform Trade between Argentina and Chile has also program, which has emphasized both trade lib- increased significantly, from about $600 million eralization and domestic market deregulation. in 1990 to about $1 billion in 1993. Further eco- nomic integration will be boosted by the con- Stabion and Reform in Brazil struction of new transAndean oil and gas Brazil's economy represents about 40 per- pipelines. Moreover, since 1991, Chile has be- cent of the region's GDP. During the past few come one of the biggest investors in Argentina, years, the economy has experienced large mac- with total investment of about $2.7 billion. roeconomic imbalances and several attempts at Although the increasing share of intra- "shock" stabilization, among them the 1985 regional trade might have involved some diver- 'Cruzado Plan" and the 1990 Color Plan, nei- sion of trade from the rest of the world, for ther:of which reduced long-term inflation. many countries there was also significant trade Despite high rates of inflation in 1993, Bra- creation: During the period 1987-93, Argentina zil's economy experienced a substantial recov- expanded the value of its trade to GDP from 13 ery, improving from a 0.9 percent decline in percent to 20 percent, Chile from 56 percent to output in 1992 to a positive 4.9 percent rate of 73 percent, Colombia from 37 percent to 44 growth. At the same time, however, the infla- percent, Costa Rica from 64 petcent to 92 per- tion rate increased dramatically. Despite a sig- cent, Mexico from 25 percent to 39 percent, nificant increase in taxes collected, which and the Caribbean countries from 67 percent to changed the operational deficit into a 017 per- 78 percent. This aggregate expansion of trade cent surplus, inflation jumped from about 400 decelerated in 1992, however, and came to a percent in 1992 to 2,752 percent in 1993, and, halt in 1993, as the ratio of exports to GDP by December 1993, it was running at an annual remained roughly the same for most countries. rate of about 5,000 percent. Yet another stabi- Only seven countries increased (slightly) their lization program was launched in March 1994. exports during the year. With this effort, Brazil has taken the first steps. Overall trade expansion was stalled by two. events. The world demand for regional exports was weakened by recession in the industrial 9Most of these inflows have been receikcd by the fivc larg- countries, and the exchange rate in many coun- est Latin American econonmes-mostly in fixed4ncome se- tries of the region appreciated as a result of curities From a modest bond issuance of about $400 Igaanw hb ithe in- mllion in 1989. the market soared to about S23 billion in large capital inflows th y r 1993. The stock markets in the are also boomed during ternational competitiveness of the region s ex- 1993 due to their smalt capitalizadon base and increased ports. These inflows are currently financing investor confidence. Lalln Amedca and the Caribbean t11 Tabl. 5-15. World Bank Commitments, Disbursements, and Net Transfers in Latin America and the Caribbean, 1990-94 . (millions of US dollars; rml years) Brzil Madco Argentina Total region sar start start slirt Item 1994 1994 1990-94 1994 1994 1990-94 1994 1994 1990-94 1994 1994. 1990-94 Undisbursed commitments 4,789 3,712 1,607 16,183 Commitments 1,137 527 - 1,530 8,663 609 3,621 4,747 7.779 Gross disbursements 437 3,399 997 8,663. 392 2,789 2,769 2,307 Repayments . 1,292 6,139 1,007 4,58 441 1,691 4,489 19,714 Net disbursements -855 -2,740 -10 4,075 -49 1,097 -1,720 . 2,593 lnterest and charges - 544 3,177 907 4,157 276 1,090 2,657 13,711 Net transfer . -1,399 -5,917 -917 --82 -325 7.. -4,377-11,118 Non: Disbursements from the IDA Special Fund -e induded. The countries shown in the table ar those with the largest amnounts or public or publicly guamateed long-term debL Detuls may sot add to toads because of rounding. in a long-tenn program that is designed to re- crease costs, reduce net wages, and promote solve its fiscal problems and introduce mone- the informal economy. tary discipline- A return to high and sustinable * As regional grwth is led by growth in the growth will require that substantial progress be private sector; actions to .sustain that sector's made in the near future on the stabilization development should continue, and the enabling firont. . environment necessary for private sector Brazil has made major headway in trade re- growth nurturcd. form. In June 1993, it completed a multiyear * Public sector activities should be reori- trade-reform program that reduced average tar- ented to maximize their efficiency; priority iffs to 14 percent in the context of a trade- should be given to investment in infrastructure, liberalization program- Exports reached $38.7 which, in many cases, has lagged as a result of billion (compared with $36.1 billion in 1992), spending cuts mandated by stabilization pro- and manufactured exports grew from $20.6 bil- grams. lion to $23.8 billion. Overall, its trade surplus in * Investment in health and education is cru- 1993 was $13 bllion The capital account con- cial for labor productivity. The cost- tinued to show large inflows and, by the end of effectiveness of governments' health and 1993, reserves exceeded $32 billion (up $8 bil- education expenditures must be assessed. lion from the year before). Brazil's trade sector Many countries still provide blanket higher- has ample room to grow-, the total value of education subsidies to students through re- trade to GDP was only 15 percent in 1993. duced or free tuition; by doing so, income disparities are widened, and resources are The Road Ahead - spent inefficiently.'X The region-s challenges are to reduce pov- * Public sector decentralization has to be erty and increase the well-being of its people carefully implemented because local govcrn- through environmentally sustainable develop- ments are often wcaker in their administrative ment. In this context, outward-oriented capacities than central govermments. growth, integrated with the world economy, is * The judicial system, which has become a crucial. It is also important to sustain fiscal re- constraint on productivity, must be simplified form and increase domestic savings. In this en- and strengthened, and archaic and cumber- deavor, a carefully planned and executed some procedures eliminated. reform of the social security system in many countries of the region could be critical (see The Bank's Strategic Objectives Box 5-7). Success will depend on increasing ef- The Bank has made considerable progress in ficiency through more rapid growth in produc- the planned transition in lending from adjust- tivity. An integrated approach to increased ment to long-term issues-human resources productivity requircs action in several areas: development, environmentally sustainable de- . Domestic markets need to be morc dereg- velopment, and privatc-sector developmnwnL A ulated at all levels. . * Labor markets need to be deregulated and lo The bottom 40 percent of the population in the region rc- high payroll taxes reduced. These taxes in- ceives only 13 percent of tota higher-education subsidies. 112 1994 RegIonal Perspecties lBox 5-7. Pensio. Reform In Ladn America During the debt and fiscal crisis of the 1980s. developed financial markets. and the need for a Latin America's pension schemes became senr- strong regulatory and supervisory system. In ously underfunded. By the end ofthe decade, fail- countries with fiscal pmblems a combination of a mig pensions (in real terms), lar social-security pay-as-you-go system that provides a miniimum deficits, and depleted reserves haC irreparably base with a complementary.fullyhmded private,. damaged the credibility of traditional pension system might be warranted. schemes. As the countries of the region entered Nonetheless, the -move toward the privtiza-: the 1980s, the movement to privatize pensions tion of social-security systems has begun in sev- gained momentum, encouraged by the apparent eral countries. It is furthest -along in Argentina- success in Chile. - and Peru. In 1992, both governments proposed. In l96l, Chile introduced a fully funded social- changes that effectively privatized a large share security system with individualaccounts. Itwas a of the pension- sector. Peru's new pension law mandatory,-defined-cntnbution system to which went into effect in June 1993, while Argentns workers contnbutd for old age, survivor, and was signed into law in October l993. disability benefits. The funds collected from Not unexpectedly, the new social-security workers were (and are) managed by thirteen pri- schemes in the-three countries have a numberof vate firms that operae under tight supervision'- common features. Argentinaand Peru have set up with strict investment litations. A committee. schemes for the management of social-security selects the stocks in which the thirteen firms can funds that are vcry similar to the one im Chile; i invesL The government guarantees workers a, fact, they lgely adopted the Chilcan ry ninimum return of the lesser of (a) the avrcag structure.. - return on all funds less 2 percent or (b) half the ButthenewestschemesalsodiffrfomCiles average return on all funds. Workcers are free to in certain important ways as a resut of the coon-_ switch their accumulated funds between the tries'- diffiring political climats and institutions. finns, thereby creating inltense competition For- example, the political powerof u io d among them. -Upon retirement, accumulated pensioners-has ledArgntina to maintain alarge fnds can be taken in a phasedwithdrawal and/or- public plar. Thus all igiblc workers recevc may be-used to purchasc indexed annuitics.. a flat benefit equal to30' percent of average cov- If other gornments are not exactly beating ered wages from the filrstpMarin addtn to their' the- door down in their haste to move toward a pension fommthe second pilar. An icontrast s lscrysym, Chilcanstyle, its bo e to thew countctan in Chili and Argentia, the; of the fiscal implications involved.. In Chile, the privately managed investment firms in Peru op- transition to the newsystem meant thatthiepublic erate-in limited domestic capital markets, which system lost many contnbutors (and, therefore, provide few investment-options. En addiio-the - much revenue); at the same time, howevcr, it re- absence in Penr of rdiable records has forced of- mained liable for pension payments to retires- ficialstoacceptthe' swom staecments" ofwork- andrirdee-o-be during the transition. A deficit m ers to estabhLsh thcir pasticontributions.i of the publicsocial-securitysystem on the scale The fiture of pension system is- curenty a* ofthe Chilean reform would likely itensify fiscal matter of-debate- in Bdivia, Brazil, Costa Ra, pressues,therebymaldngabalancedbudgetthat Mcxico.Urnguay, and Venezuea. While the out- much more difficult to achieve. Other issues that comes fll vary, gena wecanesses in social- countrics have to address include equitable treat- security arangements in.Latin America make it ment of different generations of workes, poten- ikely that, given the chance;- increasing numbirs tial problems that could arise from implementing ofworxks in this regionwil trade in public prm- a Chilean-style system in the absence- of well- ises for private accounts. comparison of the actual fiscal 1991-93 lending through economic stabilization supported by program with the proposed program for fiscal targeted safety nets, stronger social sector in- 1994-96 shows a decline in lending for adjust- stitutions, long-term investments in health and ment and debt reduction from 24 percent to 3 education, the elimination of hidden subsidies percent, an increase in lending for human re- for the rich (such as free higher education) and sourcestpoverty reduction from 23 percent to hidden taxes on the poor (such as inflation and 33 percent, and an increase in environment and trade barriers). During the past year, the Bank forestry commitments from 7 percent to 13 per- approved social sector and/or social invest- cent. ment fund projects in Ecuador and Peru (for The focus on human resources and poverty S30 mullion and $100 million, respectively). issues reflects the region's historically highly both broadly patterned on programs begun stratified social structure and skewed distribu- earlier in Bolivia, El Salvador, and Mexico. tion of income. The situation cannot be re- Much of the Bank's investment lending and versed quickly, but improvements can be made technical assistance in the environmental area Latin Afmerica and the Caribbean 113 is oriented towards improving the environmen- year. Good overall economic performance and tal management capacity of governments (both years of economic reform in many countries national and subnational). This focus on insti- have had a positive effect on portfolio perfor- tutional strengthening is taking place within a mance. The correlation between economic re- context of widespread privatization, decentral- form and good project implementation is ization, and governmental 'downsizing" in strong; in addition, the convergence ofthinking many countries. The Bank is working with between the Bank and its borrowers on eco- member governments to ensure that adequate nomic issues has made it easier to resolve out- capacity exists for carrying out those environ- standing problems. Implementation of some mental functions (particularly legal, regulatory, projects has been slowed, however, by (among and planning) that remain the responsibility of other reasons) shortages of counterpart funds governments. At the same time, many projects resulting from austerity drives- This problem is are promoting the increased use of the private typical of countries that are in the early stages sector Iincluding nongovernmental organiza- of adjustment. Other projects, however, have tions) for the in-the-field implementation of en- benefited as govermnents, such as those in Ja- vironmenal activities such as delivery of urban maica and Mexico, have concentrated re- services, protected area management, and en- sources on priority projects. Some countries vironmental monitoring, have established or reinforced mechanisms for The Bank has been in the forefront of pro- monitoring project implementation. moting private-sector development. Private The Bank's esmpasis on quality at entry and sector assessments, which aim at determining borrowercommitment and ownership has been the most important factors hampering the busi- the key to the improved quality of its portfolio. ness environment, were completed for several Furthermore, importance has been placed on countries ofthe region duing the year. Implicit effective supervision ofthe portfolio of ongoing in this work is the idea that governments have projects. The quality at entry concept includes a comparative advantage in certain areas- not only the traditional standards of project providing price stability, an efficient legal quality but also borrower ownership and com- system, secure property rights, security, edu- mitment to a project and to design-for- cation. and health services, and infiastructure; implementation. Borrower commitment and the private sector, however, has the advantage ownership is developed upstream with the in- in the production of goods and services. volvement of borrowers and other stakehold- e in sector work that eventually leads to Porffolio Performance and Trends sctor strategies and identification and prepa- There was further improvement in the re- ration of projects. gion's portfolio performance during the past 114 1994 RegIonal Perspecties Middle East and North Africa In calendar year 1993, the MIiddle East and Tuk- -17. RGDP G North Africa region experienced a continued 1991-93 selected Economes decline. in growth rates and marked variability in performance among countries. Real gross Country 1991 1992:- 1993 domestic product (GDP) growth in 1993 forthe 0.2 23. -1.7 eight countries in which theBankwas mostac- Egypt :2.1 03 0-- tive" was about 1.5 percent, compared with -l- 103 6A 3.0 4.3 percent in 1992 (see Table 5-17). Rates of Jordan o.0 11.0 6.0 GDP growth ranged from - 17 peent in Al-. ILcbaIon .. .38.2- 435 - 7.0 geria to 7 percent in Lebanon. Morocco. 62 -4.0 0.0 In the Magbreb, Algeria remains in recession Occupid Terrtories -4v0- -23.6. -10.1 as a result of a further decline in petroleum TXi-a, 3.8 &O -2.6 prices, a heavy debt burden, and drought- yM 0.0. 0.1 03 related declines in agricultural production. Mo- RSiot 6.3 43 15 rocco is coming out of two years of drought. during which GDP declined by a cumulative -y VDdn d Lb 4 percent.. The underlying macroeconomic in- dicators remain favorable for long-term growth, howe-ver, and the oudook for 1994 is In Iran, real growth slowed from 5.8 percent good because of improved rainflL Tunisia's in 1992 to 3 percent. Two factors, in particular, GDP grew at about 2.5 percent contnrbuted to the slowdown. Fist, an oil-price decline reduced export earnings by 15 percent Second, arrears on short-term trade credits re- Tch!. 5-16. MIde East and North duced Iran's access to new credit and contrib- Afriern 199 Populaton and Per Capita uted to a sharp decline in imports and growth GNP of Countries that Borrowed during Egypt continued to pursue its ambitious pro- -s Years 199234 gram of stabilization and structural reform. Growth of output remained below 1 percent in - millions) E - - a. fiscal 1993, with only aiculture and construc- Country (nolnos)f MCSdolksr tion showing signs of recovery;overall growth is expected to increase gradually to reach 43 Al -a . 26.3 : -- 1,840 0 - - percent in fiscal 1996. Elsewhere in the Mash- Egypt 54.7 640 req, Jordan's high rate of growth in 1992 car- an, Islamic fried over into 1993; GDP growth exceeded 6 Republic of 59.6- 2,200 percent. But, in contrast to 1992, when growth - Jordan - 39- - 1,120 . was largely concentrated in construction and Lebanont - ; 3.8 domestic services, 1993 saw a more broadly Morooco 26.2 1,030 based pattern of growth. In addition to con- finisa 8A.4 --1,720 ~ . struction, nonmineral exports, trade services, Yent 1 E - - i3.0 - transportation, and tourism all recorded gains- NoTrn he 1992 estimte of GNP per capita pested Lebanon's reconstruction, supported by large aboveamof &=trM DevpnRpmrt 1 do4sc private capital inflows, resulted in robust (7 percent) growth. -Notav ;. f ; ; Economic reforms remain high on the a. Estimates for mid I992 a. Weld Deskda, - . . -~ - : agenda of most countries. Governments in b; WiddBAtks.mrlodokwi. I990-Y2k perieL.- c. Estmates refer to Fa Bank only.X & dEstmaed as la ewe (S57625). - Algia. Egypt. knn. ordan. Lebanon. Morocco. Tuni- c. Esmated as low6icom (S675 or kss). - -- .- Si and Ye - . . : S - -- 12 Eg~lyps fisal year y uns rml ly Ilt o June 30 Middle East and North MIca 115 Egypt, Iran, and Jordan continued to imple- Restoring sustained growth. Following rela- ment stabilization policies effectively. tively good economic performance in the 1960s Morocco and Tunisia have moved from stabi- and 1970s, the 1980s and the first years of the lization to longer-term macroeconomic man- current decade have been host to economic cri- agement and structural reform. Algeria is sis, which has led to a drop in per capita in- implementing a stabilization program that is be- comes in most countries of the region. The ing supported by a one-year, $1 billion standby crisis has been characterized by a deteriorating arrangement with the International Monetary external economic environment, particularly Fund. Virtually all economies reduced their fis- the sharp drop in international oil prices, de- cal deficits, most notably in Egypt, where the creasing efficiency in the use of capital, low deficit fell from 22 percent of GDP in fiscal 1991 levels of private investment, and poor export to about 4.7 percent in fiscal 1993. Inflation performance. In many countries, GDP growth was kept in check throughout the region; remains below the rate of population growth. balance-of-payment deficits were reduced, and This, in turn, is reflected in high and increasing (with the exception of Iran) large movements in rates of unemployment, which range from 15 exchange rates were avoided. There were also percent in Tunisia and Morocco to 27 percent encouraging signs that private sector activity is in Yemen. The consequences of past popula- picking up-especially in Jordan, Lebanon, tion growth wil continue to be felt through Morocco, and Tunisia. Increasing foreign di- large increases in the labor force. Levels of rect investment (FDI) is playing an important poverty are also related to growth and employ- role in this resurgence. FDI in 1992 almost dou- ment, a more equitable distnbution of the ben- bled 1991's total due to an improved invest- efits of economic growth, and targeted social meat climate and was expected to reach $2 safety net interventions. Countries, on the one billion in 1993. hand, such as Morocco, which have achieved The historic signing of the peace accord be- relatively high, sustained rates of growth, have tween Israel and the Palestine Lberation Or- also been able to reduce the number of poor ganization was the most significant political (from an estimated 5.7 million people in 1985 to event in the region during the past fiscal year. about 3.4 mfllion in 1991). In Jordan, on the The Bank has been a central player in provid- other hand, where economic growth has not ing technical assistance and aid coordination in been as sustained, the number of poor has not support of the peace process (see Box 5-8). decreased. Beyond the immediate impact of the accord on To prevent further increases in unemploy- the Occupied Territories, the peace process- ment and poverty, the region's economy must should it widen beyond its current scope- grow at about 5 percent per year and be ac- would have a number of important implications companied by labor-intensive methods of pro- forfuture economic development in the region duction, including the promotion of small and * Greater stability would likely increase medium-sized enterprises. Growth of that mag- trade flows, especiallyforEgypt, Jordan, Leba- nitude could be realized if rates of investment non, and the Syrian Arab Republic. Stability were to increase to around 25 percent of GDP wil also fivor inflows of private capital and (compared with an avenage of 20 percent now) private investments. and if the incremental capital-output ratio * The reduction in geopolitical tensions (ICOR) could be reduced to five from its cur- could allow governments to shift public re- rent level often through increased productivity sources away from military expenditures and and labor-intensive production. A private place greater emphasis on sustainable eco- sector-onented growth strategy offers the best nomic growth, especially human resources de- prospects of realizing increases in investment velopment. and improvements in the ICOR. Traditionally, * The scope for regional economic coopera- countries of the region have relied more than tion could increase, especially in the areas of other low-income and middle-inccme countries water management, the environment, and in- on public investment Although the level ofpnr- fistructure. vate investmnt nearly doubled between 1970 and 1990, it is still less than 10 percent of GDP Key Development Challenges (rates are well above the 15 percent mark in the The ability of the region to realize the eco- high-performing countries of the East Asia and nomic benefits of the evolving peace process Pacific region). Moreover, the declining effi- will depend fundamentaLly on its capacity to ciency of investment is largely associated with meet three key development challenges: (a) re- the implementation of a public sector-led strat- storng sustained growth; (b) developing hu- egy. In most countries of the region, large but man resources; and (c) managing scarce natural inefficient parastatal enterprises continue to resources, especially water. dominate the economy. 116 199'4 Reglonci Perspectlves Box 5-. The World Bak and the Oocped TerGdS.- The economies of the West Bank and Gaza (the bilitation program for Gaza A separate $35 mil- Occupied Territories) are in a state of crisis, and lion trust fund aims -to provide technical a new course will have to be charted to ensure assistane and to finance feasibility studie in the renewed growth andjob-creation in the economic Occupied Territories. environment likely to be faced in the -1990s. Sus- In the wake of the October meeting, the Bank tainable growth prospects are contingent on de- has moved ahead on three fronts: donor coordi-. veloping central institutions, rehabilitating and nation, institution building, and program dewl- expanding infiastructure, attracting private in- opmenL vestments, and building a financial sector. In ad- Donorcoortation. FoDowingthe Octoberdo-: dition, the new Palestinian self-governing nors' mneeting, a consultative group mting was - authority must also develop a reformed lepl sys- convened in December to discuss and agre on; W en, enforce property. rights, and collect taxes. the proposed emergency assistmce to the Occu-.- The World. Bank. became involved in the Occu¶ pied Territories. When it became apparent that a. pied Territories in early 19933, when it was invited significant proportion of assistance would have to- by the European Community, the chair of the be allocated to rgent recrent expenditures of a Economic WorkingGroup, and other participns start-up or transitional nature, the Bank was to prepare a series of reports on regional devel- asked to prepare the groundwork for a second opment with a special emphasis on the.Occupied meeting of the group in January 1994. Thc meet- X Territories. Developing the Occupied Terricories, ing proved to be an unprecedented success inithat an Investment in Peace' was completed by the substantial pledges weVt made for financing re- time of the historic handshake between Palestine current transitional and start-up expenditures-: - Liberation Organizaion Chairman Yasir Arafat types of expenditures not normnaly fundedby.the and Israeli Prime Minister Ytzhak Rabin. and it donor community. Donors were also given the provided the basis for a meeting in-October 15993 opportunity- to contribute to a, newly created :inWashington, D.C ofthe donor community,at HolstiPeace Fund (nmed aftertbe late Norwe- c- - - which $2.1 bilion was pdged to rebuild the Oc- giani Miister of Foreign Affairs,. Johan Hoist),; cupied Territories. In that same month, the Bank which would be admisted by the Banki The approved the establishment of two trust fumds fnd, which: is short.term in nature (disburse-: aimnedat pnrviding urgent assistance to the West., ments are to be completed by around the end of Bank and Gaza. calendar 1994), will finance items such 'as con- -:A; $50 million crust fund, drawn from the- slumable health:and education supplies and sala- IBRD's fiscal 1992 surptus andmiLstmd by' des of key Palestinian stat IDA, is aimed at supporting an emergency reha- Insdtitional building. The iPale n Eco-- Because the discrepancy between domestic Even in well-performing countries such as Tu- levels of savings and investments is still large, nisia. and Morocco, the adult illiteracy rate is external capital flows remain vital to the re- more than 10 percentage points higher than the gion. In Egypt, for example, investments equal average for all middle-income .countries. The about 18 percent of GDP, whereas savings average infant morality rate for the region is amount to a mere 7 percent. Overall, savings around 60 per 1,000 live births, compared with for the region average about 18 percent of 38 for all middle-income countries. The aver- GDP, while investment is about 22 percent. If age population growth for countries of the Mid- governments were to shift to a private sector- dle East and North Africa is among the highest led growth strategy, an increasing share of ex- in the world: During the 1980s, the average an- ternal flows would be directed to the private nual rate of 3.2 percent was actuaRy higher sector. The potential exists in the region to in- than in the 1970s. Farther improvements in so- crease private capital flows-not only through cial indicators are key to the region's long-term FDI and larger levels of workers' remittances development prospects- To achieve these im- but also through the reflow of assets held provements, additional efforts wil be needed abroad. Improvements in macroeconomic to expand and improve the quality of basic ser- management and in the investment climate, as vices. In most cases this wouldjustify substan- well as progress in privatization, wiU play cen- tialy increased budgetary aRocations. There is tral roles in this process. also room to improve the internal efficiency of * Developing human resources. In spite of im- public social services, mobilize private financ- pressive gains made in social indicators during ing, and encourage the private provision of so- the 1980s, many countries still lag behind other cial services. middle-income countries on aU the basic indi- Managing natural resources. Natural re- cators of educational achievement and health. source management is another pressing re- Middle E*st and North Afric 117 nomic Council for Development and Reconstruc- $2.1biionpledged ovcrfive years atthe October tion (PECDAR). orgaized by the Palestine LIb- 1993 conference (the pledges subsequently in- eration Organization with the support of the creased to $2.4 bilion). o t p wa t donor community and the Bank. has been desig- The first tangible result of the p was the nated as the agency in charge of aid coordination approval in May 1994 ofa $30 milion Trust Fund- and public investment progrmming during the for Gaza creit on IDA terms in support of an peace process To help support PEDCAR and the Emergency Rehabilitation Project, which has at- emerging Palecstinian institutions, a widc-ranging tacted $98 millian. in firm cofinancing commit- prgamof techniclassisnce (about$40 million ments from the. Aab. Fund for Economic and. over three years) was tabled at the December SocialDevelopment($30million.)theSaudiFund meeting of the consuitative group. This progr-a, for Development (S30 mIllion), Dennark (S20 mil-; ; . - which consists of some 100 activities, is being co-. lion), the Kuwait Fund for-Arab Economic De- ordinated in the context of the $35 million tech- velopment. (S10 million), and .Switzerland. (Sg nical assistance trust fund, which has drawn million). The projet is financing the rebabilita- cofinancing commitments from nine donors, with tion, reconstuction, andlor improvement of pri- the prospects of additional cofinancingfiron five ority infatructual services in the education, othicrdonors. power, water supply and sand roads Progrwn developmme he Bank's report on. sector Technical assistance to-hp strengthen developing the Occupied Territories recom- .the capacities of municipalidiesin Gza 2ad the mended thata majorinvestmnt program inGazi West Bank, to support the operations anddevel- * and the Wcst Banlcbe initiated overthe nefive opment of PEDCAR and to ensure that the yearn. Folowing agreement in May 1994 on the project is efficiently and effctively implemceted, i;::mplementaion of the Dclation of Principles w wM also be provided. Project- implation is between the Palesnians and the Israelis, the being supported by Bank staff thughintensive --. a.nkreleasedareporroutningathree-yeaSll hfield work in the Occupied Territories and from -billion program to assist the Palestinians in the Wash-ingon. transitionto atonomousrule?. Thegoal of tie pmgram is to rebuild the infia- - -structure ofthe Occupied Territores in order to . B 1 D t O - stimulate economic growth: br. auracting private ' = imvestment oportunies from expatrate Pales- -to, D.C. - tinians, international investors, and Arab states. wn Bank. 1994. &wegeCYAnsWunc gmfi -The $12 billion is the initial installment of the ihe Occupied Ternkoes Wahington. D.C.. gional issue, especially in the case of water. and reuse, and water imports. These are much 'With a few exceptions, the region is moving more expensive than traditional sources, and toward a water crisis. Rainy seasons are short, research efforts designed to reduce costs, such and agriculure is heavily dependent on rriga- as the desalination program recently embarked tdon. Rapid population growth and urbaniza- upon in Oman, need to be stongly suppported. tion have pushed demand for water to the point Moreover, because many rivers and some im- where withdrawals are exceeding replenish- portart underground aquifers cross national ments. Few untapped sources of fresh water boundaries, agreements at the national and remain, and countries are increasingly mining transnational level will increasingly be re- groundwater aquifers. By the year 2000, with- quired. drawals in most countries will exceed total freshwaterpotential. Competing demands from The Bank's Strategy for the Region agriculture, industries, and municipalities The World Bank's strategy for the Middle dictate the need for appropriate demand- East and North Africa region emphasizes sus- management policies-especially in the area of tained commitment to operations and analytical water pricing. But demand management alone work to promote employment-led growth, fos- cannot meet the full water requirements of bur- ter human resources development, and improve geoning populations. Technological innovation natural resoure management Increasing atten- and modern on-farm technologies, which, in tion was devoted in fiscal 1994 to the important several countries, have succeeded in halving interrelationships among coonomic growth, hu- water use while doubling yields, should com- man resources development, and poverty. plement demand-management policies. Alter- While the thrust of the Bank's assistance strat- native sources of water need to be explored, egies is aimed at the needs and constraints of including desalinaton, wastewater treatment individual economies, efforts to promote re- *118 1994 Regional Penspective gional cooperation in areas such as environmen- Improvements in the structure of incentives, tal protection and waxer-resource management the regulatory fr-amework, and protection of are becoming increasingly important. property rights are needed in many countries of Stabilization and structural reform also re- the region to provide the private sector with the main high on the Bank's agenda for the region. environment required for increased levels of In Morocco and Tunisia-which are well ad- job-creating investment. During the past year, vanced in stabilizng their economiies and are the Bank addressed private sector develop- continuing to undertake structural reforms- ment int a variety of.ways. In Tunisia, for the Bank's focus has shifted from stabilization instance, financial sector reforms were sup- to long-term development. Agricultural sector* ported through a private investment project loans to the two countries that were approved that uses a number of financial institutions to during the past year are emblematic of this provide long-term credit at market termis to a shift. Jordan and Egypt are also steadily pro- broad range of private investors. Private sector ceeding on the path of reform. In Egypt, reform assessments, which analyze the structuire of, is being advanced by the Bank's support for the and'constraints to, the private sector in given second phase of the government7s Economic countries and which lay out concrete steps that Reform and Structural Adjutstment Programt, can be taken to advance private sector devel- which provides the fr-amework for continued opment, were carried out for Egypt, Morocco, economic reform, even -though it is not asso- and Tunisia The Morocco assessmnent was the diated with a specific lending operation. In centerpiece of ahigh-level semi'nar at which the Jordan, an 580 million energy-sector loan, ap- private and public sectors produced an agenda provied in fiscal 1994. aims at addressing of recommended actions to promote private supply-side constaraits to growth. sector development. Together with the govern- Table 5-18. Lending to Borrowers in Middle East awl Norfth Africa, by Sector, (nulWowof US donars fisca years) Amind Sector~~~~~~~~~~ ~~~~~~ 191`92 1993 r1m-C Agriculture: 374.6 129.0 13.2- 2992.2 463.0 601.7 -EneW-y Oillandga 3.5 - 84.0 160.0 80.01 Power ~~~~~~- 101.8 ~~~~~15.5 11440) 220.0 ..165.07- Environment - - - - - ~~~~~~~~~~~~~~~~~~~.6.0 Humuan Resources EducAotio 122.2 30.5 -241A4 754) 115.2 33. 'Population healkh; and nutrition 119.9 11. 250 68 S.0 Social sector--- --- Inutyand Fiac Industry 188 9935 365.0 --- Finance . 106.6 .196.0 23.5.0 -- 120.0 infastuacture and Urban Development Telecoinmnications 36.8 --- 0. 20.0 Transortation 113.4 ~79.0.' 162-.0 350- Urban development 325 105_5.-~ 250.0 110.0 i684.0- Water supply and sewerage: 167.1 12.0 - 57.0 - 270.0- NMiniugand Other Exftactive 11.6. 25.0 -- Multisector 1418.0- 450.0 310. 520 . - ,- :Public Sector Managment _ 55 100 - 90-~ 1.9 Tourism - -. - ~~~~~~~~~~~~~~~~-130.0 Total, .,273 1,391.0 2096 .142 0 10.2 1,0. Of which:: IBRD. 1,180.8 13235- 1,784.0- 1,324.0 1,756.4 1,050.6, IDA 4j.7 673 235.6' 158.0 123.8' 100.0 -Nuinberotoperaxious -- '~~21. :20 _20- 17 19 16: - Non: Detail may Dot add to totals because of rning. ...~~~~~~Z Mddle East Eand Norh Africa 119 Table S-19. World Bank Commitments, Disbursements, and Net Transers in Middle East and North Africa, 1998-94 (millions ofUS dolars. fiscal years) Eypt- Algrria Moroc - Total reion start Stat start . - a Itemn 1994 1994 1990-94 1994 1994 199094 1994 1994 199-94 1994 1994 .1990-94 Undisbursed commitmcnts 1,134 -1,474 1,579 6,218 Commitments - 121 1,290 140 1,484. 412 2,395. 1,151 7,924 Gross disbursements 183 767 [98 1,353 311 1.894 1,057 5,921 Repayments 199 977 189. 806 . 292 1,230 964 4,343 -Net disrsements -16 -210 9 547 - 19 - 664 92 1,578 ihterest and charges 120 657- 114 498 264 1,212 .'730. 3,321 Net transfer -136 -867 -105 49. -245 -548. -638 -1743 Nor: Disbursements fiaum thclDA Special Fun ae included. The counties sbown in the table ame those wkh the larges amounts of public or publily guaanteed log-tam debt Detis may not add to totals becmuse of roundin ment and the private sector, the Bank is devel- by the European Commission of the European oping an operation to support this agenda. Union, the European Investment Bank, the Human resources development also features United Nations Development Programme, and promiaendy in the Bank's operations and sec- the World Bankl Under the fist phase of this tor work. Strategies are molded to the specific program, more than twenty transnational and needs of individual countries. For example, ba- country-specific projects have. been. prepared sic educational services are being supported in the areas of water-resource management, through an education project approved.duwing hazardous waste management, marine oil and the year in Yemen. The Bank's analytical work chemical-pollution prevention and control, and is also focusing increasingly on the human re- coastal zone management. The program has sources sectors. In Morocco, for example, is- also helped to create important networks of sues in education were addressed through a concemed national institutions. literacy and schoolng study and through a re- Poverty was the focus of both analytical view ofthe costs and financing ofthe education work and operations. Three poverty assess- sector, and a nutrition strategy was developed ments, which provide the basis for a collabo- to deal with pertient health issues. In Tumsia, rative approach to poverty reduction by an analysis of the issues facing post-basic ed- country officials and the Bank, illustrate the ucation and training was prepared on the basis extent to which economic growth has a notice- Of field work and subsequent analysis carried able effect on poverty reduction. These assess- out by national teams. This joint approach is ments, for Egypt, Jordan, and Morocco, are expected to result in strong country ownership also providing the analytical basis for improv- of the study's conclusions. ing public spending in the social sectors and Environmental issues are being addressed at putting in place more effcctive social safety both the country and regional levels. At the nets. The poverty assessment for Egypt served country level, environmental stufdies and strat- as the basis for ongoing reforms in health, hu- egies have been completed for Algeria, Egypt, man resources development, as weU as for im- Iran, and Yemen. Specific operations, such as provements in the social safety net and in the water-supply projects in Algeria and Morocco, pension scheme. The deficiencies in social in- dealt directly with pressing water problems. dicators highlighted by the poverty assessment The Morocco Environment Technical Assis- for Morocco are being addressed in a series of tance Project was the Bank's first stand-alone social priorities projects currently under prep- lending operation in the region to focus primar- aration. Targeted poverty-reduction interven- ily on environment planning and management tions are critical components in the Northwest In Egypt, three projects related to the coun- Mountainous Areas Development Project in try's national environmental action plan, which Tunisia, as well as in the National Rural F- was jointy prepared and endorsed by ten ex- nance Project in Morocco, which also has a ternal donors, are currently in the Bank's lend- component designed to funnel credit to women. ing program. At the regional level, cooperative In infrastructure, Bank lending continues to action continued in the context of the Mediter- focus on removing key constraints and creating ranean Environmental Technical Assistance an enabling environment for pnvate sector par- Program (METAP), which is jointly sponsored ticipation. The Telecommunications Project in 120 1994 Regional Pespecie P 1 : ..0. f ; 0~~~~~~~~4: L.. '4 .Young workers in Egypt lay drainage pipes in a waterlogged feld near their village. Jordan, for example, supports the creation of a operation, the Bank is helping the Jordan Tele- new sector policy and telecommunications law commnunications Corpomtion in raising private in addition to providing for service improve- funds to commercialize, corporatize, and sub- ments. Supported by an expanded cofinancing sequently privatize its operations. Middle East and Nortn Arica 121 From Strategy to Implementation portfolio-performance reviews (CPPRs) and re- flecting the outcome of those reviews in Implementation of the Bank's operational country-assistance strategies; strategy has emphasized the ability to respond * Undertaking additional initiatives to im- quickly to changing economic and political cir- prove project quality at entry by involving the cumstances. Total staff resources in fiscal 1994 technical department and relevant central vice- increased modesdy above the levels of the pre- presidential units in project design and by ex- vious two fiscal years to accommodate the new plicitly linking project content to well- challenges of work on the Occupied Territo- articulated sectoral strategies; ries. Within the total, however, a marked re- * Increasing high-level managerial review of deployment of staff has taken place to improve portfolio performance and recognizing excel- portfolio implementation, and significant real- lence in portfolio management; locations continued to be made across coun- * Simplifying business processes to improve tries in light of evolving circumstances. Thus, accountability and encourage initiative; and reductions in programs in somne countries of the * Increasing supervision efforts. -In the case region allowed additional resources to be com- of Egypt, for example, where supervision work mitted to the work on the Occupied Territories. is increasingly being delegated to the Bank's The Bank has reacted quickly and flexibly to resident. mission, the direct supervision input emerging needs: Assistance to the Occupied per project increased from 14.6 staffweeks in Territories was characterized by both flexibil- fiscal 1992 to 16.2 staffweeks in fiscal 1993. ity and innovation; in Lebanon, the focus of CPPRs have now been carried out for all ma- the Bank's assistance strategy was on recon- jor borrowing countries and are on an annual struction, while the Emergency Desert Locust cycle. These efforts to link portfolio perfor- Control Project in Algeria provided a quick re- mance and country strategy are already having sponse (it was appraised in October 1993 and an effect on the volume, structure, and design approved in early December) to the challenge of lending programs in the region. For exam- of incipient natural disaster. pie, the country-assistance strategy for Egypt Efforts continued to improve portfolio man- was revised during the year to reflect major agement and project quality by: changes in project identification and develop- * Linlking the lending program, project de- ment processes resulting from agreements with sign, and portfolio performance explicitly the government reached during the country- through the conduct of thorough country portfolio review. 122 Summaries of Projects Approved for IBRD, IDA, cnd Trust Fund for Gaza Assistance in Fiscal 1994 Acronyms and Abbreviations Used in This Section ACBF-Africa Capacity Building IDA-International Development Foundation Association ADF-African Development Fund IDB-Inter-American Developmcnt Bank AfDB-African Development Bank IFAD-International Fund- for Agricultural AGCD-Administration Gdndrale de la Development Coopdration Beige IMF-International Monetary Fund AFESD-Arab Fund for Economic and IsDB-[slamic Development Bank Social Development JExIm-Export-Import Bank of Japan AsDB-Asian Development Bank JIC,4,-Japan International Cooperation BADEA-Arab Bank for Economic Agency Development in Africa KFAED-Kuwait Fund for Arab BITS-Swedish Agency ror International Economic Development Technical and Economic Cooperation NDF-Nordic Development Fund BOAD-Banque Ouest-Africaine de NORAD-Norwegian Agency for Developpement Development Cooperation CDB-Caribbean Development Bank ODA-Overseas Development CFD-Caisse francaise de Administration ddveloppement OECF-Overseas Economic Cooperation CIDA-Canadian International Fund Development Agency OPEC-Organization of the Petroleum DANIDA-Danish International Exporting Countries Development Agency PHARE-Pologne-Hongrie: aide i la EBRD-European Bank for rdconstruction economique Reconstruction and Development SDC-Directorate for Development EU-European Union Cooperation and Humanitarian Aid ECO-Expanded cofinancing operation (Switzerland) EDF-European Development Fund SFD-Saudi Fund for Development EIB-European Investment Bank SIDA-Swedish International FAC-Fonds d'aide et de cooperation Development Authority FINNIDA-Finnish International UNDP-United Nations Development Development Agency Programme GEF-Global Environment Facility UNICEF-United Nations Children's Fund IBRD-International Bank for USAID-United States Agency for Reconstruction and Development International Development (World Bank) WFP-World Food Programme Agriculture management plans developed; the decline ALGERIA: IBRD-S30 million. Attempts to in timber harvest will be reduced through ALGERI: IBR-S30 mllion Attcmts to the import of spare parts: and the thwart a locust plague, forecast for late establishment of private sector harvesting. 1993 and early 1994, will be made through transport, and other services to the sector truck-and-airplane applications of pesticides, and the country's existing promoted. Technical assistance is included. locust surveillance and monitoring systems Total cost: $54.7 million. will be upgraded, thus facilitating planning and implementation of future control NOTrE Dat used in this section have been compilcd from programs in situations of both plague and documcntation provided at the time of project approval. recession. Total cost: $51.2 million. Projects marked by an asterisk (*) are included in the Pro- BELARLTS: IBRD-$41.9 million. Forestry gram of Targeted Interventions, and those marked with a pound sign (#3 are poverty-focused adjustment operations. resource management will be improved Projects marked by a dagger(t) included the participation of and medium-term strategic resource primary stakeholders. Summorles of Probcts Approved 123 t*BENIN: IDA-$9.7 million. T'he management in the three major types of govemment will be assisted in ulleviaLing forest land in the country-plantations, poverty and improving food security and watershed-protection forests, and nature nutrition standards for vulnerable groups in reserves-will be enhanced. Colinaincing about twenty areas of the country through ($18.4 million) is expected from the GEF. a project that helps finance coinmunity- Total cost: $356 million. developmcnt initiatives. income-generating tCHINA: IDA-$150 million. The per capita activities, micro-infrastructure, nutrition incomes of some 67.000 households living activitics, and institution-building in resource-constrained remote upland assistance. Cofinancing is expected rrom areas of.Zhcjiang. Fujian, and Jiangxi DANIDA ($4.9 million) and the WFP provinces are expected to triple as a result ($700,000). Total cost: $19.1 million. of a second project supporting the tBHUTAN: IDA-$5.4 million. The integrated development of paddy, upland, government's efforts to develop and and -forest areas. Total cost: $296.4 million. implement an approach for sustainable t*CHINA: IDA-$'50 million. Agricultural protection. management, and use of its production will irnerease on more than forest resources will be supported through 15,000 square kilometers of land in the a project that will help finance a Loess plateau watershed and incomes comprehensive program of activities for raised for the more than I million people in forest-resource development in eastern the project area by creating sustainable Bhutan. with maximum participation of crop production on high-yielding level forest users. Cofinancing ($2.7 million) is farmland and replacing areas devoted to being provided by the SDC. Total cost: crops on erodible slope lands with $8.9 million. plantings to a range of trees, shrubs. and BULGARIA: IBRD -$50 million. Access of grasses for land stabilization and the the private sector to medium-term and production of fuel, timber, and fodder. long-term credit for investments in primary Total cost: $248.7 million. agriculture and agribusiness will be tCHINA: IDA-SI 10 million. One hundred improved through provision of foreign fifty-four thousand people directly affected exchange resources to participating by the construction of the Xiaolangdi dam financial intermediaries. Total cost: $63.4 will be resettled and their livelihoods both million. restored and improved through the CHINA: IBRDK-$0 million. Through the reconstruction of villages and towns, construction of the 154-meter high development of agricultural land, relocation Xiaolangdi rockfill dam and a power of small industries and commercial station with an installed capacity of 1,800 enterprises, and the establishment of new mW, flood protection will be provided for county, township, and village industries, In 103 million people in the North China addition, income opportunities for about plain, sediment accretion in the lower 300,000 people in the host areas receiving reaches of the Yellow river will be the resettlers will be expanded. Total cost: controlled for some twenty years, $571.3 million. hydropower will be generated. irrigadon t*COLOMBIA: IBRD-$39 million. The first water supplied for about 2 million bectares, phase of a long-term Natural Resource and a stable water supply furnished for Management Program-designed to downstream cities and industries. Total develop policies and mechanisms to help cost: $2,294.7 million. arrest the degradation of natural renewable tCHINA: IDA-S205 million. The living resources-will be implemented in the standards of more than a half million farm Choco region, which has a 90 percent families living in the Songliao plain area of African-Colombian and indigenous Liaoning and Jilin provinces are expected population and a high incidence of poverty. to increase as a result of a project that will The project will thereby generate the expand irrigation and drainage facilities. policy, institutional, and technical base for develop marginal lands for orchards, future forest management and land-titling develop aquaculture infrastructure, and investments in the Choco region. Total invest in agroprocessing facilities. Total cost: $65.3 million. cost: $382.3 million. tCOTE D'IVOIRE:- IDA-$21.8 million. The tCHINA: IDA-$200 million. The first phase of a five-year program designed productivity of forest resources, the to support, through improved research and efficiency of resource use, and the extension. the generation, dissemination, institutional capacity for sustainable and adoption of environmentally sound 124 1994 Regional Perspecfmes technology required to sustain productivity GUYANA: IDA-$15 million. By financing a gains in agriculture. will be supported. limited capital-investment program, currcnt Institution-building assistance is included. levels of sugar production at the Guyana Cofinancing is anticipated from the CFD Sugar Corporation (GUYSUCO) will be ($5 million), the AfDB ($2.3 million), IFAD ensured and the operation-of the country's ($1.9 million). the UNDP ($700,000). and sugar industry stabilized; at the same time, the AGCD ($500,000). Total cost: $44.6 technical assistance will be provided to million. help GUYSUCO restructure itself and COTE D'IVO;RE: IDA-$2.2 million. prepare for eventual privatization. Through the rehabilitation and development Cofinancing is expected from the CDB of rural savings and loan cooperatives. ($3 million) and suppliers' credits ($1.9 rural dwellers will be provided with much million). Total cost: $40.5 million. needed deposit-safekeeping services and #tHONDURAS: IDA-$60 million. The access to short and medium-term financing government's medium-term Agricultural. for productive and social expenses, thereby Sector Modernization and Development improving rural incomes and living Program. designed to improve land use, conditions and reducing poverty. lay the basis for a sustainable management Institution-building assistance is included. of the country's rich forest resources, Cofinancing is expected from the CFD eliminate distortions that affect ($6.5 million). CIDA ($3.5 million). and the smallholder farmers. and help improve FAC ($2 million). Total cost: $15.8 million. sector planning and coordination, will be *ECUADOR: IBRD-$20 million. The supported. Cofinancing, in the amount of government will be assisted in undertaking $50 million, is anticipated from the process of modernization of the the IDB. irrigation subsector through the provision HONDURAS: IDA-$27.9 million. Funds of technical assistance (public institutional from IDA reflows will be provided to strengthening and reform, private sector supplement the agriculture-sector development. and preparation of a public adjustment credit. approved in fiscal 1994 sector irigation-investment plan). In in the amount of $60 million (see above). addition, poor farmers will be helped t*INDIA: IDA-$258 million. Through through pilot irrigation projects. Total cost: support for the water-resource $25.5 million. development program of Haryana state. tEGYPT: IBRD-$54 million; IDA-S67 agricultural productivity will be enhanced million. An agriculture-modernization and environmental sustainability assured; project will be supported through provision civil works will also generate employment of financing and advisory services to and increase incomes for the landless poor farmers and rural entrepreneurs, and marginal farm families. Total cost development of competition in the rural $483.4 million. financial market, and the launching of pilot t*INDIA: IDA-$77.4 million. About 700.000 efforts in administrative reform and households of fringe forest dwellers and institutional development. Total cost: small farmers, including about 150.000 $268.8 million. tribal households, are expected to benefit f*GHANA: IDA-$21.5 million. Through the direcdy from a project designed to improve financing of investments for the benefit of management and protection of nearly rural communities (small water schemes, 400,000 hectares of land in Andhra Pradesh rural markets. market-access roads, storage state and directly or indirectly increase the and food-processing facilities) and production. of wood. nontimber forest provision of technical assistance by the products. and animal products. In addition. local private sector. agricultural production forest-sector policies will be streamlined is expected to increase. agricultural and strengthened so as to reverse the marketing made more efficient. rural process of forest degradation. Total cost: associations strengthened, and vulnerable $89.1 million. groups helped through increased income tINDIA: IDA-$47 million. The capacity of and food security. Total cost: $25.4 national and state institutions to plan and million. undertake priority forestry research GHANA: IDA-$5.7 million. Funds from programs. to improve the system of IDA reflows will be provided to forestry education in research and supplement the agriculture-sector - academic institutions. and to improve the adjustment credit, approved in fiscal 1992 extension of research findings will be in the amount of $80 million, strengthened. Total cost: $56A million. Summaries of Projects Approved 125 tlNDONESIA: IBRD-$165.7 million. Morc rubber smallholders-the country's largest than a million farm families are expected to poverty group-will increase through a benefit from a project that has been project that will help finance the second designed to create the framework for phase of a rubber-replanting scheme. integrated water-resources management. Institution-building assistance is included. increase rice production on Java. and Total cost: $253.2 million. protect existing irrigation infrastructuie MALI: IDA-$20 million. Finance will be from deterioration while relieving the provided to help implement the first six- government of responsibility for a large year phase of the Institut d'Economie number of small irrigation schemes. Total Rurale's strategic plan for national cost: $304 million. agricultural research. whose principal t*INDONESIA: IBRD-S65 million. About objective is to ensure that adequate 32.000 poor Farm families are to benefit technology will become available to fromn a project that will further develop farmers as a means to increase agricultural twenty reclaimed swampland schemes in growth and to reverse the decline in the Sumatera and Kalimantan. Technical productive capacity of the natural resource assistance and training are included. Total base. Cofinancing is expected from USAID cost: $106 million. ($23.3 million). the Netherlands ($13.8 INDONESIA: IBRD-S55 million. The risk million). France ($3A million). the UNDP of dam failures will be reduced through the ($250.000). and Switzerland ($234,000). establishment of dam-safety institutions. Total cost: S111.7 million. the provision of basic safety facilities at 'IMAURITANIA: IDA-518.2 million. The existing dams where such facilities are first five-year time slice of a long-term lacking. and the implementation of national program to upgrade the provision remedial works at dams with safety of agricultural services nationwide. deficiencies. Total cost: $97.4 million. focusing on strengthening the linkages *LAO PEOPLE'S DEMOCRATIC among extension. research. and agriculturat REPUBLIC: IDA-58.7 million. The training. will be supported. Total cost: government will be helped in implementing $19.8 million. a new resource-management system. which 'tMEXICO: IBRD-$200 million. Some concentrates on poor forest dwellers. in 42.00D farmers residing in fourteen order to better achieve the sustainable irrigation districts. whose management management and conservation of the responsibility was transferred from the country's forest resources. Cofinancing is National Water Commission to water-user anticipated from FINNIDA (S5.6 milion) organizations. will be assisted in and the GEF ($5 million). Total cost: $20.3 completing the transfer process. In million. addition. minor irrigation-network and on- LA-TVIA: IBRD-$25 million. Private farm improvements will be financed. Total agricultural development will be supported cost: $568.8 million. by providing initial investment credits to MOROCCO: IBRD- 5121 million. Selected new private farmers and for the expansion investments in the buidget of the Ministry and technological upgrading of private of Agriculture will be financed. and agroindustries and forest-based industries. reforms designed to improve the efficiency Technical assistance is included. of investments or operations in the sector Cofinancing. totaling $4.9 million. is will be supported. Cofinancing (SI 13 expected from the PHARE and BlTS. million) is being provided by. among Total cost: $45.1 million, others. France. Germany. the EU. the t*LEBANON: IBRD-$57.2 million. Some AfDB. and IFADI Total cost: $993 million. 34.000 farm families are expected to benefit *MOROCCO: IBRD-S$00 million. Finance fiom a project that seeks to increase will be provided to support the continued agricultural production and agriculture- financing of the core activities of the based income and employment in National Agricultural Credit Bank as well previously ncglected poor rural areas as its diversification into a more universal through the rehabilitation and adequate bank. still geared to rural finance (and operation and maintenance of surface- thereby the poorer population). but with irrigation infrastructure. In addition, basic a broader portfolio and resource base. public support services will be provided. Institution-building measures are included. Total cost: $70.5 million. Cotinancing is expected from the OECF *MALAYSIA: [BRD-$70 million. The ($95 million). the EIB ($60 million). the productivity and incomes of about 150.000 AFESD ($60 million). Germany ($34 126 1994 Regonxl Peapectes million), and the CFD ($30 million). Total implement policies built up. and its cost: $ 1.1 50 million. capacity to produce reliable information on tMOROCCO: IBRD-$25 million. crop and livestock production and Agricultural production on about 200.000 productivity, as well as on marketing and farms is expected to increase as a result of trade, will be strengthened. rationalized. a project that will provide for technology and expanded. Total cost: $27.2 million. transfer to farmers in irrigated as well as tTUNISIA: IBRD-$1'0 million. Priority adjacent rainfed areas. support services. investments-4n water mobilization and use and promotion of farmer organizations. efficiency. natural resource conservation. Technical assistance is included. Total animal health and production. and land cost: $34.7 million. consolidation-linked to policy reforms INICARAGUA: IDA-S44 million. Some through a government-prepared 50.000 small and medium-scale farmers are development action plan will be supported. to benefit from a project that seeks to Institution-building assistance is included. "jump-start". the agricultural sector by Total cost: $211 million. introducing a new demand-driven approach tVTUNISIA: IBRD-S27.5 million. Living to technology generation and transfer and conditions of the population of the by supporting the required technological impoverished mountainous northwest and institutional framework for defining region will be improved by promoting and ensuring property rights to land, measures to increase farm productivity and Cofinancing ($43 million) is expected from off-farm income-supporting activities. the SDC. Total cost: 557.8 million. implementing watershed and rangeland POLAND: IBRD-$S46 million. The management measures. and providing basic government's program designed to improve infrastructure and social services. forest-management practices witl be Institution-building assistance to the supported. thereby ensuring the protection executing agency and village committees and expansion of the country's forest is included. Total cost 550.7 million. ecological capital. providing for social tUGANDA: IDA-S14 million. The benefits. and accommodating sustainable government's strategy to revive cotton forestry. Cofinancing ($15 million) has been production and exports through increased secured from the EIB. while $76.9 nullion competition in cotton processing and is being sought from bilateral agencies. mark-eting and improved supporting Total cost: S335.4 million. services will be assisted. Cofinancing IRUSSIA: IBRD-$-40 million. Critical ($12.5 million) is anticipated from WFAD. agricultural support services-focusing on Total cost $31.A million. the enabling policy environment for private f URUGUAY: IBRD-$41 million. A soil and sector participation in seed and mark-et wvater-management strategy-focused on development. a nationwide market- rehabilitation and development of irrigation/ information system. and farmer information drainage schemes and related service and advisory services-will be created and infrastructure. improvements in the strengthened. Total cost: $325 miltion. efficiency of surface and groundwater use. RUSSIA: IBRD-$50 million. The establishment of a welt-balanced operation implementation of the government's land- and maintenance and capital cost-recovery reform program witll be assisted through policy. and support for water and soil the creation and strengthening of management and conservation-will be infrastructure and institutional capacity for developed and implemented. Technical land registration. Total cost: $1 t5 million. assistance is included. Total cost S74 RWANDA: IDA-S15 million. Through million. development and implementation of a t*VIET NAM: IDA-$96 million. The program of institutional reforms. the incomes of some 50.000 smallholder farn quality. relevance. and accountability of families are expected to increase through priority agricultural research programs will provision of supervised credit. extension. be improved. Cofinancing. totaling $11.5 and plant-protection services supported by million. is expected from Canada. France. research. In addition. the first steps toward Germany. Switzerland. the EU. and IFAD. encouaging smallholder rubber Total cost: S36.5 rmllion. development will be taken by rehabilitating TANZANIA: IDA-$24.5 million. The existing state-owned estates. which will fuxnctions of the Ministry of Agriculture form the nucleus of the program. Technical will be rationalized and strengthened. its assistance is included. Total cost $106.7 institutional capacity to formulate and million. Summaries of Projects Appoved 127 Educatian. planning. cofinancing. and project ALBANIA: IDA-S9.6 million. Damaged and execution. will be supported. In addition. dilapidated primary school facilities will be access to secondary education by the poor rehabilitated. and the capacity of the will be increased through implementation Ministry of Education to stimulate efficient of a voucher program. Total cost: S150 use of fiscal resources and assure quality- million. of learning outcomes strengthened. Total COTE D'IVOIRE: IDA-S100 million. cost SI 1.3 million. Supplementary finds will be provided to *BARBADOS: IBRD-S7.8 million. The help finance the Human Resources country's human-capital base will be Development Program. approved in fiscal solidified and the unemployed and less able 1992. (An amount equivalent to $100 students helped by strengthening the million on an IBRD loan that was approved quality and efficiency of basic education: to help finance the same program has been improving the effectiveness. efficiency. and canceled.) responsiveness of technical and vocational COTE D'1VOIRE- IDA-S85 miUion. Funds education: and by reinforcing employment from IDA reflows-will be provided to help services and labor-marklet information, supplement the Human Resources Total cost: $15.6 million. Development Program. approved in fiscal ,BENIN: IDA-$18.I million. A third 1992 in the amount of $150 million. education project seeks to increase the t*COQE D'lVOIRE: IDA-S17 million. By access to primary schools. with a specific supporting governmental efforts in three emphasis on girls' participation at both [he areas-training. retraining, and primary and secondary levels: improve the apprenticeship: training outreach support: quality and internal efficiency of primary and labor-market monitoring and analysis- and secondary education: and strengthen and by emphasizing the informal sector and sector institutional capacity. Total cost: women's enterprises. labor productivity S22.9 million. and employability wlll be enhanced. *BRAZIL: IBRD-S206.6 million. The thereby improving the country's economic quality of schooling for approximately 3 competitiveness. Total cost: $19-5 million. million children a year in the first four INDONESIA: IBRD-S58.9 mullion- The grades of state and municipal primary quality of graduate education will be schools in five nortbeastern states will be improved through the improved planning improved. thus contnrbuting to reducing and management of graduate education and grade repetition. raising student university research and support for achievement. and increasing attainment selected competitive grant and fiellowship Total cost: 5366.9 million. programs. Total cost: S97-6 nuilion P'BRAZIL: IBRD-S150 million. The quality INDONESIA: IBRD-$27.7 million. of schooling for approximately 3 million Innovative industrial skils-training primary school children in Minas Gerais schemes within private enterprises will be state will be improved through a project developed and implemented in three that will support policy improvements. provinces (West Java. East Java. and finance educational inputs. and increase North Sumatera) for possible replication teachers' access to training opportunities. elsewhere. and a special training program Total cost: $302 million. for unemployed university graduates in tBRAZIL: IBRD-$96 million. Educational those provinces, as well as in South attainment in the state of Paranai as Sulawesi and Bali. will be supported. defined by increases in student learning Institution-building assistance to the and graduation from primary school. will Ministry of Manpower is included. Total be improved through the delivery of a cost: $39.7 million. paclage of essential educational inputs to KENYA: IDA-$42.2 million. Funds from primary schools and improvements in IDA reflows will be provided to educational management Total cost supplement the education-sector $198.4 million. adjustment credit. approved in fiscal 1992 t*COLOMBIA: IBRD-$90 million, in the amount of $100 million. Implementation of the government's higher t*KENYA: IDA-$2-18 million. The education strategy. which centers on potential for employment creation in the cofinancing educational investments with informal sector will be increased through a the departments and municipalities and project that seeks to diversify and improve supporting the municipalization of public and private sector training capacity. education by building local capacity for stimulate information exchange and 128 1994 Regional Perspectives innovation in product development. and contributions are being explored. Total develop a new partnership between the cost: $4.020 million.- public and private sector guaranteeing the ROMANIA: IBRD-$50 million. The quality ftil participation of informal sector of basic and secondary education will be entrepreneurs and workers in training and improved bv strengthening cuniculum and technology policy. Total cost: S24.2 teacher training. assessment and million. examinations. and textbook quality. In KOREA. REPUBLIC OF: IBRD-$190 addition. measures to increase efficiency in million. Policy improvements in science the management of public resources for and technology education will be education will be developed and implemented. and educational quality in introduced. Total cost: S73.5 million. selected private universities and junior -URUGUAY: IBRD-53 1.5 million. The technical colleges upgraded through the quality. equity. and efficiency of the provision of specialized laboratory and primary education system will be workshop equipment. Total cost: $324.8 improved. In addition. the quality of million. preschool education will be enhanced. as t*MEXICO: IBRD-5412 million. Primary well as expanded into areas with school students' academic achievement unsatisfied basic needs. Institution-building levels will be improved and high repetition measures are included. Total cost 545 and dropout rates reduced in ten of the mnillion. country's poorest states through the r*VENEZUELA: IBRD-$89.4 million. The training of teachers and school uzovernment will be assisted in raising the administrators. provision of classroom- level of student achievement. reducing the tested educational materials. and the incidence of repetition and dropout. and strengthening of the institutional capacity increasing graduation rates of basic of the education svstem. Total cost: $616.7 education through improvements in the million. quality of education and administrative - NEPAL: II)A-520 million. The first efficiency. particularly in rural and poor phase of Tnbhuvan University's ongoing urban areas. Total cost: $178.9 million. reform process will be supported by *VlET NAM: IDA-570 million. The Bank's helping finance the implementation of a first project in the country since 1973 seeks package of policy changes. including the to improve the quality and relevance of initiation of systemic changes in the primary education (especially in rural areas university's administrative. financial, and and for ethnic minorities), rehabilitate managemnent processes. Total cost: existing infrastructure, extend access $23.1 million. through the construction of a limited *NIGER: IDA-S41.4 million. Sector number of new classrooms, and strengthen reforms. designed to promote more cost- the management of primary education at effective use of public education resources. the school. district. provincial. and national will be supported. and the access to and levels. Total cost: $78 million. quality of primary education will be tYEMEN: IDA-S33 million. Secondary improved through constructing or students' learning achievements will be rehabilitating classrooms. developing and enhanced through reduction of classroom implementing a program to accelerate girls' overcrowding. provision of science education. improving the quality of primarv equipment. and improved teacher school teachers' training programs. performance: female access to secondary provision of textbooks. and support for a education will be increased through micronutrients program. Cofinancing is provision of school places for 5.000 girls. expected from Germany ($10.2 million) and incentive programs to recruit female Norway ($4.8 million). Total cost:. S76 headmasters. and specialized home-based million. learning programs: and two-year post- t*PAKISTAN: IDA-$-00 million. The secondary programs. oriented toward country's broad-based Social Action labor-marklet needs. will be established. Program. designed to expand and improve Cofinancing is expected from the OPEC primary education. primary health care. Fund for International Development ($8 family-planning services. and rural water- million). Total cost: $49-7 million. supply and sanitation investments, will be supported. Cofinancing is anticipated from Environment the AsDB ($100 million) and the CHINA: IBRD-S160 million. An investment Netherlands (S13 million), while other program of environmentally oriented Summaries of Projects Approved 129 capital works and related institutional strengthening and investments in natural strengthening-designed to provide safe resource-rehabilitation subprojects. Total drinking water while improving water cost: $17.8 million. quality in the Huangpu river-will be t*PARAGUAY: IBRD-$50 million. This financed. Total cost: $456.6 million. first-phase initiative to alter radically the THE GAMBIA: IDA-42.6 million. use of natural resources in agriculture. Technical assistance will be provided to particularly by small-scale farmers-from the National Environment Agency and extensive expansion to growth through other relevant agencies to build up the intensification. with emphasis on capacity to develop and guide an effective sustainable resource manrgement and system for environmental planning and environmental protection-will be management and to ensure that supported. Total cost: $79.1 million. environmental concerns are fully integrted and reflected in the country's social and Fihnacial Sector economic development process. ARGENTINA: IBRD-$500 million. Capital- Cofinancing (S13 million) is expected from market development will be accelerated -Germany- Total cost: $4.5 million. through the introduction and consolidation ,*INDONESLA: IBRD-S56-5 million. of the necessary capital-markets Through provision of institutional infrastructure. which. along with strengthening measures designed to developing indigenous skills. can produce a improve the guidelines and policies of the sustainable and orderly national market. national 'regreening and reforestation' ARGENTINA: IBRD-$8.5 million- (r&r) program. the introduction of Technical assistance will be provided to improved farming systems in a priority help facilitate the implemenation of the watershed in West Java, and investment IBRD-assisted capital-marklet development support for the national r&r program, the project (see above) by supporting the living standards of poor. upland farners creation of new institutions and the will be raised. the productive potential of strengthening of others and by ensuring the their resource base restored. watershed development of more effective capital- environmental quality enhanced. and mark-et regulations. Total cost: $10.2 downstream watershed resc;rces million. protected. Total cost $487.8 million. CARIBBEAN DEVELOPMENT BANK: KOREA. REPUBLIC OF: IBRD-S90 IBRD-$20 million: IDA-St I million. miHlion. The ability of selected national Funds will be onlent by the CDB to IBRD research institutes to identify and and IDA-eligible Commonwealth Canrbbean adequately address environmental issues countries to finance the types of projects and to undertake environmental research the World Bank would finance. Total cost: and development activities will be $68 million. strengthened. Institution-building COLOMBIA: IBRD-$30 million. Wide- assistance to the Ministry of Environment ranging improvements in the management is included. Total cost: $156 million. of public finances. from revenue generation MEXICO: S368 mullion. About fifteen to the evaluation of public policies, will be subprojects in- five or six cities bordering made. thereby increasing public revenues. or. the United States in the areas of water reestablishing public confidence in treatment and sanitation. solid waste government and public administration, and management. and air quality and urban contributing to an overall institutional transport will be financed so as to improve environment conducive to private-sector environmental quality. Institutional initiatives and development. Total cost: $58 strengthening measures are included. Total million. cost: $762 million. COTE D'IVOIRE: IDA-$1OO million. MOROCCO: IBRD-$6 million. The Supplementary funds will be provided to government will be assisted in strengthening help finance the Financial Sector its institutional and regulatory framework Adjustment Program. approved in fiscal for managing environmental protection. 1992. (An amount equivalent to $100 Total cost: $10.8 million. million on an IBRD loan that was approved tPAKISTAN: IDA-$14.7 million. The first to help finance the same program has been phase of a long-term program to improve canceled.) Balochistan's environmental protection and COTE D'IVOIRE: IDA-$50 million. natural resource management will be Supplementary funds will be provided to supported through institutional help finance the Competitiveness and 130 1994 Regional Perspecthves Regulatory Reform Adjustment Program. expected from Belgium. Total cost: $19.3 approved in fiscal 1992. (An amount million. equivalent to $50 million on an IBRD loan #SLOVENIA: IBRD-$8O million. The that was approved to help finance the same country's efforts to implement effective program has been canceled.) reform of its enterprise and financial KOREA. REPUBLIC OF: IBRD-I$0O sectors will be supported by a project that million. The government's liberalization seeks to facilitate enterprise privatization program in the financial sector-designed and restructuring, accelerate the to accelerate deregulation of domestic development of a strong and supportive financial markets and-increase competition financial sector, and support more effective and efficiency of financial intermediation- labor-market policies and a social safety will be supported by a project that will net for the poor. Tcchnical assistance is channel long-term credits to private included. manufacturing enterprises through three TUNISIA: IBRD-$120 million. Financially participating financial intermediaries. sound banks and financial leasing Training and technical assistance are companies will be provided access to term included. Total cost: $250 million. resources at mark-et rates to finance viable #MOZAMB[QUE: IDA-$200 million. The private investments during the current government's economic and social transitional period of emerging long-term rehabilitation program, whose objectives capital markets. are to support macroeconomic stabilization UGANDA: IDA-Sl.l million. Funds from through the strengthening of kley elements IDA reflows will be provided to of fiscal and monetary policy while supplement the financial sector adjustment supporting an interlinked program of credit. approved in fiscal 1993 in the enterprise and financial sector reform and amount of $100 million. continuing income transfers to poor URUGUAY: IBRD-$35 million. A line of households. will be supported. credit will be extended to participating MOZAMBIQUE: IDA-$9 million. By financial intermediaries to finance private providing training (a) in kley areas of investment. associated permanent working central bank activity. (b) to meet the capital. and leasing operations (excluding immediate training needs of commercial purchase of land and housing) of viable bank staff. and (c) to strengthen legal enterprises that have revenues financial capacities. the ability to predominandy in United States dollars. implement the government's policy and Technical assistance is included. institutional reforms will be enhanced. Cofinancing ($90 million) is being provided Institution-building assistance to the by the IDB. banking system is included. Cofinancing ZAMBIA: IDA-$18 million. Standards of ($1 million) is anticipated from the SDC. accounting, public sector procurement. Total cost: $10.5 million. and legal services will be improved by tRUSSIA: IBRD-$200 million. A financial strengthening key institutions involved institutions development project has been in these three activities through designed to improve the quality of banking improvements in their human and material services. promote banking stability. and resources. Total cost: $19.6 million. contribute to a more efficient allocation of ZAMBIA: IDA-510 million. Supplemental bank credit by building up the capacity of a funds will be provided to help finance the core group of thirty to forty private second Privatization and Industrial Reform commercial banks. Cofinancing is expected Credit. approved in June 1993 in the from the EBRD ($99 million). the EU ($36 amount of $100 million. million). Japan ($18.6 million). and USAID ($3.4 million). Total cost: $389.4 million- Industry IRWANDA: IDA-$ 12 million. A line of BANGLADESH: IDA-$247 million. credit will be made avaitable to finance Implementation of a program of reforms productive private sector investments, and designed to restructure the jute- a fund will be set up to finance technical manufacturing industry will be supported. assistance designed to improve the BANGLADESH: IDA-$3-3 million. Funds technical and managerial capacity of from IDA reflows will be provided to private sector firms. Institutional supplement the jute sector-adjustment strengthening. designed to ensure proper credit. approved in fiscal 1994 (see above). implementation of reform measures, is *COMOROS: IDA-$5.1 million. The included. Cofinancing (S1 million) is nascent private sector will be provided Summaries of Projects Approved 131 with the means and incentives to engage in measures to arrest and mitigate mining- productive investments through provision related environmental degradation. of finance and technical support to small- including the upgrading of small-miner scale entrepreneurs engaged in labor- technology and management practices. intensive and/or service activities: Cofinancing. totaling $8.1 million. is implementation of improvements in expected from Swt den and the United commercial and labor law. as well as legal Kingdom. Total cost: $24 million. and judicial procedures: and a strengthening of investment incentives. Multisector Total cost: $7.7 million. BELARUS: IBRD-$120 million. The MAURITIUS: IBRD-S7.7 million. Export government's reform program. designed to competitiveness. and thereby prospects for promote competition. support the sustainable rapid growth. will be enhanced development of the private sector. and by facilitating private sector access to provide a financially sustanable and know-how for improved productivity. incentive-compatible social safety net in quality. design. and response times. as well order to protect vulnerable groups during as diversification of export production. the tansition. witl be supported. Total cost: $133 million. BELARUS: IBRD-S8.3 mitlion. The PHILIPPINES: IBRD-S40 millon. The government will be assisted in pmgram to attract private investors to the strengthening the institutional basis for Subic Bay Freeport-until November 992 economic reform through provision of it was the Subic Bay Naval Base-will be technical assistance in four functional supported through provision of areas: resource mobilization and economic infrastructure improvements: maintenance management. enterprise reform. banking of the freeport's asset base, including sector reform, and social-sector reform. protection of the environment: and Total cost Sl8 million. strengthening the capacity of the freeport's BOLIVIA: IDA-$9A million. Funds from managing authority. Total cost $54.1 IDA reflows will be provided to million. supplement the structural-adjustment ROMANIA: IBRD-$175 million. Funds will credit. approved in fiscal 1992 in the be onlent to private enterprises for amount of $40 million. investments aimed at improving #tBURKINA PASO: IDA-$25 million. The international competitiveness and/or to governmenfs reforn efforts following the expand exports. In addition. partial to full devaluation of the CFA franc in January coverage of preshipment finance needs for 1994 will be supportei imported inputs will be provided. Technical CAMBODIA: IDA-$62.7.million. Critical assistance is included. Total cost: $334 imports to enable key sectors of the econ- million. omy to continue to operate wil be financ- RUSSIA: IBRD-$200 million. Term finance ed. Cofinancing ($23 million) is expect- for capital investments and permanent ed from SIDA. Total cost: $73.1 million. working capital will be made available to #CAMEROON: IDA-575 million. The commercial banks for onlending to new government's economic recovery program private and newly privatized enterprises. will be supported by this credit. which will Cofinancing ($100 million) is expected from finance the imports needed for economic the EBRD. recovery and growth following the recent ZAMBIA: IDA-$16.8 million. Funds from devaluation of the CFA franc. while IDA reflows will be provided to instituting short-term safety net measures supplement the privatization and industrial to protect the poor. reform credit. approved in fiscal 1992 in CAMEROON: IDA-$51 million. Funds from the amount of S200 million. IDA reflows will be provided to supplement the structural-adjustment MininglOther Extiractive credit. approved in fiscal 1994. in the ECUADOR: IBRD-$14 million, amount of $50 million (see below). Implementation of the government's new CAMEROON: IDA-$50 million. The mining sector policy and strategy. designed government's revised stabilization and to attract private mining investment. will adjustment program will be supported. be assisted by financing (a) mapping and (Concurrently. the third tranche of a $150 mining-information and cadastral systems million IBRD loan in support of the to support increased. yet environmentally govemment's structural-adjustment sound. mineral production and (b) program was canceled.) 132 1994 Regional Perspectives #CHAD: IDA-S20 million. The components of a market economy- Total government's post-devaluation reform cost: $39.5 million. program. designed to restore order to #MACEDONIA. FORMER YUGOSLAV public finances and lay the basis for growth REPUBLIC OF: IBRD-S40 million: and the alleviation of poverty. while IDA-$40 million. Key structural reforms. instituting measures to protect the most designed to enable the government to vulnerable groups. will be supported. achieve sustainable stabilization and CONGO: I,A-St100 million. The restore growth, while protecting vulnerable government's reform program. designed to groups through social safety net reforms. improve public sector efficiency. strengthen will be supported. the country's production capacity. develop MALAWI: IDA-54.3 million. Funds from human resources. and' reduce poverty. will IDA reflows will be provided to supplement be supported. the entrepreneurship-development and #EL SALVADOR: IBRD-1 50 milion. The drought-recovery project. approved in fiscal government's structural-adjustment 1992 in the amount of $120 million. program. designed to lay the analytical #MALI: IDA-S25 million. The country's framework for public sector modernization: post-devaluation reform program. whose consolidate and deepen reforms supported main objectives are private sector-led by a previous structural-adjustment growfth and the reduction of poverty. will operation: implement a comprehensive be supported. poverty-alleviation plan: and strengthen MOLDOVA: IBRD-S60 million. Imports of public expenditures. the civil service. and essential production inputs and health-care environmental management. will be supplies will be financed, foreign exchange supported. will be provided to support the access of ETHIOPIA: IDA-S470.000. Funds from enterprises to the foreign-exchange mark-et. IDA reflows will be provided to and the social safety net system will be supplement the structural-adjustment strengthened. Technical assistance is credit. approved in fiscal 1993. in the included. amount of $250 million. MONGOLIA: IDA-S20 million. Imports and #GABON: IBRD-S30 million. Emergency technical assistance urgently needed to support will be provided to the maintain and develop coal and copper government's program of economic mining production and the transport sector recovery that was conceived in the wake of will be financed. Total cost: $25.4 million. the devaluation of the CFA franc. Public #NIGER. IDA-$25 million. The country's expenditure reallocations towards basic post-devaluation reform program will be social service areas. as well as policies to supported. in particular measures aimed at eliminate distortions faced by the poor. are minimizing the negative short-term social included, impact of the devaluation. GUYANA: IDA-$S2.8 million. Funds from OCCUPIED TERRITORIES: Trust Fund for IDA reflows will be provided to Gaza-$30 million. Priority infrastructural supplement the second structural- services in the education. power. water adjustment credit. approved in fiscal 1990 and sewerage. and roads sectors in Gaza in the amount of $74.6 million. will be financed. In addition. technical KAZAKHSTAN: IBRD-$180 million. The assistance to help prepare and support government's reform program will be implementation of investment activities. supported by provision of finance for (a) provide support for the development of expansion of the country's foreign- much of the policy framework required to exchange auction market. which provides ensure the sustainability of the investment hard currency to enterprises wishing to program. and lay the institutional basis finance imports through normal commercial for interim self-government will be practices and (b) essential imports required provided. Cofinancing. which will support for the continued operation of essential components in both Gaza and the public services and a recovery in critical West Bank. has been pledged by the productive sectors. AFESD ($30 million). the SFD (S30 KAZAKHSTAN: IBRD-538 million. million). the KFAED ($1O million). Critically needed technical assistance will Denmarkl ($20 million). and the SDC (SS be provided to help develop ard implement million). kIey components of the governu'ment's #SENEGAL: IDA-525 million. The reform program, assuring the prompt and country's post-devaluation reform progam concerted development of the essential wilt be supported. in particular measures Summaries of Projects Approved 133 aimed at minimizing the negative short- Tartu. and Parnu). thereby reducing fuel term social impact of the devaluation. costs and import requirements and #SIERRA LEONE: lDA-$50 million, improving environmental conditions in Government reforms in the areas of trade affected areas. Capacity-building assistance and exchange-rate policies. fiscal is included. Cofinancing will be provided management. the civil service. the public by the BITS (S10 million) and the EIB enterprise sector. and delivery of social ($4.4 million). while another S3.8 million is services to the poor will be extended and being sought. Total cost: S64.5 million. deepened. tETHIOPIA: IDA-$74.3 million. By SIERRA LEONE: IDA-S190.000. Funds increasing the availability of fuel from the from IDA reflows will be provided to Calub natural gas deposit in the country's supplement the structural-adjustment southeast region. Ethiopia's unbalanced credit. approved in fiscal 1994 in the structure of energy supply will be partially amount of $50 million (see above). righted and the supply of petroleum #SLOVAK REPUBLIC: IBRD-$80 million. products needed in the modern sectors of The government's ongoing reform the economy increased. Road program-its central objective is the rehabilitation, technical assistance. and a restoration of growth-will be supported poverty-alleviation component-aimed at by financing many of the one-time costs supporting income diversification among associated with restructuring and the poor urban fuelwood carriers-is included. break-up of the Czech and Slovak Federal Cofinancing is expected from the AfDB Republic. including social sector reforms (S27 million) and has been confirmed by and funding of a social safety net for the Netherlands (S4 million). Total cost vulnerable groups. $130.8 million. #UGANDA: IDA-$80 million. The HUNGARY: IBRD-$100 million. The next government's economic recovery program. investment (construction of a gas-fired designed to bring about rapid and sustained combined-cycle cogeneration unit) in the improvements in living standards through national least-cost power generation- policy changes. which include increased investment program. designed to improve public expenditure allocation toward basic energy efficiency and environmcntal social services. wll' be supported through a conditions at one of the country's most second structural-adjustment loan. important power stations and reduce #ZAMBIA: IDA-S150 miion, dependence on fuel imports. will be Imptementation of the next phase of the supported Institution-building assistance country's structural-adjustment program and training are included. Total cost will be supported through balance-of- $242.5 million. payments financing and support for efforts JORDAN: IBRD-$80 million. The financial to (a) restore macroeconomic stability. (b) viability of the power subsector will be generate a supply response through the restored so as to ensure that it can operate removal of bottlenecks to exports and on a commercial basis and finance its agricultural expansion. and (c) remove investment needs. In addition. the energy structural obstacles to the delivery of sector winl be restructured in such a way as social services. to establish an enabling environment for sustainable sector growth and Oil and Gas development. Cofinancing ($80 million) is tCHINA: IBRD-$255 million. expected from Japan. Implementation of the upstream oil and KAZAKHSTAN: IBRD-I$15.7 million. gas-sector restructuring will be supported. Technical assistance will be provided to and the levels and structure of gas pricing help the government strengthen the will be rationalized. In addition. gas field capacity of key petroleum subsector development. stimulation. and agencies to attract foreign investments. rehabilitation in Sichuan province will be promote the efficiency and long-term financed. Institution-building assistance is financial viability of the petroleum included. Cofinancing ($10 million) is being industry. and formulate sound investment provided by the GEF. Total cost: $945.2 and organizational strategies for the miDion. integration of domestic primary petroleum ESTONIA: IBRD-538.4 million. production. processing. transport. and Rehabilitation and improvements in district distribution. Total cost: $19.6 million. heating systems will be undertaklen in three LITITUANIA: IBRD-$26.4 million. Two of the country's five largest cities (Tallin. thermal power plants will be rehabilitated. 134 1994 Regional Perspectives and the safety. reliability. and flexibility of modernized. Institutional strengthening and the electricity-transmission system technical assistance. designed to support improved. Capacity-building assistance is the petroleum industry's efforts to become included. Total cost: $32.9 million. more competitive and cost effective. are MADAGASCAR: IDA-$51.9 million. included. Cofinancing ($15 million) is Governmental reforms in the petroleum expected from the EIB_ Total cost: $48 sector. which have introduced a million. competitive environment and the involvement of the private sector. will be Population. Health, and Nutrition supported. and basic infrastructure t*ARGENTINA: IBRD-SI1O million. An investments required to increase estimated 500.000 poor mothers and young operational efficiency and attract private children are expected to benefit directly operators and investors will be financed. from a project that seeks to expand and Institution-building measures are included. subsequently maintain coverage of good- Total cost: $79.2 million. quality basic health care. nutrition. and MOZALMBIQUE: IDA-530 million. All child-development services for the poor. predevelopment work necessary to enable Total cost: $160 million. the government and the private sector to BRAZIL: IBRD-$160 million, It is expected mak-e a firm decision to develop the Pande that. based on a conservative model of gas field to enable gas to be exported behavioral change. human (mainly to South Africa) and used immunodeficiency virus (HIV) infections domestically will be undertaken. Interest in will be reduced by 300.000 cases as a result cofinancing (S3 million) has been expressed of a project designed to reduced the by Norwav. Total cost $48.7 million. incidence and transmission of HIVIAIDS PAPUA NEW GUINEA: IBRD- 1 million, and sexuallv transmitted diseases. A second project in support of the Institutional strengthening measures are country's petroleum sector will help included. Total cost: $250 million. strengthen the governmentfs capabilitv in *BURKINA FASO: IDA-$29.2 million. policy formulation. safety regulation. The governmenrs efforts to improve evaluation of development proposals. and significantly the quality. coverage. and monitoring of ongoing sector-development utilization of basic health services: enhance programs. thereby enhancing the the nutritional status of the population: and attractiveness of the sector to international develop a national capacity for achieving investors. Total cost S12.2 million. sustainable control of endemic parasitic ROMANIA: IBRD-$175.6 million. The diseases will be supported. Cofinancing is governmentfs petroleum-sector anticipated from Germany ($4. 1 million) restucturing strategy. designed to promote and UNICEF (S3.6 million). Total cost private sector investments, strengthen $38.9 million. institutional capabilities. and establish a t*BURKINA FASO: IDA-$-6-3 million. suitable regulatory framework to facilitate The government will be assisted in making the development of an efficient and family-planning services more accessible. commercially oriented petroleum sector. particularly in rural areas. while at the will be supported. Cofinancing is expected same time stimulating the demand for from the EIB ($51.2 million) and the EU's contraceptive services. In addition. the PHARE program ($2 million). Total cost: spread of HIV infections will be slowed by S345.6 million. promoting behavioral change and treating RUSSIA: IBRD-$SU0 million. A second oil- sexually transmitted diseases. Cofinancing rehabilitation project seeks to slow the rate is expected from Denmark and Norway ($3 of oil-production decline in Western million each). Total cost: $34.5 million. Siberia: transfer international technical. t *CHAD: IDA-t185 million. Some 75O.000 environmental. and managerial practice to people. mostly women and children. stand the operation of oil fields in Western to benefit directly from a project designed Siberia: and promote a more efficient and to increase the efficiency of the health environmentally sustainable use of the system with the result that the access to country's petroleum resources. Total cost: and quality of health. nutrition. and family $678 million. planning services will be increased and ZAMBIA: IDA-S30 million. The Tazamna improved. Technical assistance is included. pipeline from Dar es Salaam (Tanzania) to Cofinancing is anticipated from UNICEF Ndola (Zambia) will be rehabilitated. and ($Z3 million) and the UNDP ($1.3 million). the oil-products depot at Ndola Total cost: $25.7 million. Summaries of Projecis Approved 135 *CHINA: IDA-SI O million. Through the migratory communities. Total cost: $103.8 training (and retraining) of health workers million. and by improving their working conditions. *MALAYSIA: IBRD-$50 million. Selected the quality of service performed by rural high-priority needs for health-sector health workers will be improved. thereby development. including building and contrbuting to better health among the equipping health-care centers in three poor rural population in six provinces. Total rural areas. strengthening prevention cost: $186 million. programs to meet emerging environmental t*COMOROS: IDA-S13 million. The and occupation concerns. improving development of human resources will be equitable access to primary health care. strengthened by increasing the efficiency introduction of appropriate new health and effectiveness of basic heatth services technologies. and institutional through the establishment of efficient strengthening. will be addressed. Total regional health administrations, a social cost $101.3 million. development fund for the poor. and other NEPAL: IDA-$26.7 million. Key supportive services. In addition. components of the government's family- complementary community-development planning/maternal and child health program initiatives will be promoted to develop will be financed. thereby providing support grassroots participation in small-scale to efforts to increase contraceptive productive activities. Total cost: S16 prevalence. decrease the total fertility rate. million. reduce maternal and child morbidity and *COSTA RICA: IBRD-52) million. The mortality. and raise life expectancy. Total government's effort to implement critical cost $39 million. policy, institutional. and operational *NICARAGUA: IDA-S15 million. Reforms reforns that aim at improving the in the health sector, which focus on efficiency. effectiveness, and quality of the decentralization of services. enhancement delivery of health-care services by the of primary care. strengthening the supply Costa Rican Social Security System- and distribution of drugs. rehabilitation of especialiv to the poorer population-and at facilities, and greater cost recovery at the improving quality control and surveillance secondary level. will be supported. in the health sector. will be supported. Cofinancing is anticipated from Norway ($3 Total cost: $32 million. miilion). Total cost $20.1 million. t*G`INEA: IDA-$24.6 nillion. The t*PERU: IBRD-S34 million. The health and coverage of low-cost health, nutrition, and nutritional status of residents (poor women family-planning services will be expanded. and children in particular) living in three thereby helping improve the health status poor regions of the country. as well as one of the population-in particular. the most of Lima's poorest districts. is expected to vulnerable groups. Institution-building improve through extending access and assistance is included. Total cost: $273 improving the quality of maternal and child miilion. health and nutrition services and through t*INDIA: IDA-SI 17.8 million. The qualitv promotion of better health and nutrition of cataract surgery will be upgraded. the practices. Total cost: $44.5 million. coverage of the National Program for the t*UGANDA: IDA-S50 million. Attempts Control of Blindness will be expanded to will be made to (a) prevent further sexual underprivileged areas (with special transmission of the HIV through promotion attention to women, tribal, and other of safer sexual behavior. increased condom isolated groups). cataract prevalence availability and usage. and provision of reduced by more than 50 percent. and care and treatment of sexually transmitted blindness incidence cut by more than 30 diseases: and (b) mitigate the personal percent in the states of Maharashtra. irnpact of the AIDS epidemic through the Rajasthan. Uttar Pradesh. Andhra Pradesh. financing of drugs, protective supplies. and Madhya Pradesh. Orissa. and Tamil Nadu. health-care services. Institution-building Total cost: $135.7 million. assistance is included. Cofinancing is t*INDIA:j IDA-S88.6 million. The family- anticipated from Germany ($6.8 million). welfare programs in the states of Assam. SIDA ($5 million), and the ODA ($4.2 Rajasthan. and Karnataka will be million). Total cost: $73.4 rmillion. strengthened and improved, and the current levels of fertility and maternal and Power childhood mortality lowered through tCHINA: IBRD-$350 million. Through the targeting poor areas and tnbal and construction of a coal-fired thermal power 136 1994 RegIbnal PerspecHlves plant. the erection of new transmission of the power shortagc-caused by the lines. and the reinforcemcnt or the existing recent drought-and facilitating economic power-transmission network. the critically recovery. Technical assistance and training needed power-generation capability of are included. Total cost: $200.3 million. Jiangsu province and the East China power grid as a whole will be greatly increased. Public-sector Management Technical assistance and training are BENIN: IDA-$5.2 million. Economic included. Cofinancing ($120 million) is management capacity in the country will be being provided through an ECO involving improved through support to the the commercial bank market and the management of a national training cenier. Japanese insurance-company market. Total technical assistance to the Ministry of cost: $1.081.4 million. Planning and Ministry of Finance, and tINDONESlA: IBRD-$260.5 million. provision of studies and short-term Efforts to increase private sector expertise in support of adjustment participation in electricity generation and implementation. Corinancing is expected to restructure the state electricity company from DANIDA ($4 million) and the ACBF (PLN) and establish it as a commercial ($2 million). Total cost: $12 million. entity will be supported. In addition. CAPE VERDE: 1DA-$8.l million. The environmentally sustainable expansion of government's broad effort to transform and PLN's electricity-generation and modernize key institutions. the laws transmission capacity will be financed. supporting them. and the personnel staffing Cofinancing ($23.7 million) is anticipated them will be supported by a project that friom Austria and Australia and from export seecs to modernize the civil service. build credits ($92 million). Total cost: $688.9 local capacity, strengthen economic million. -management capacity. reform and PAKISTAN: IBRD-$230 million. The modernize the justice system, and spur investment program of the Water and public procurement reforms. Total cost: Power Development Authority (WAPDA) $8.9 million. will be supported. and the stage will be set EL SALVADOR: IBRD-$2.5 million. The for a gradual 4nd orderly privatization of country's adjustment process will be the power sector in general and WAPDA in deepened through the provision of particular. Total cost: $4.470 rmillion. technical and financial support to the tPHILIPPINES: IBRD-$227 million. The institutions in charge of the economic rapidly increasing demand for power in reform program. Cofinancing is expected Luzon will be met through the from USAID. the UNDP. and the IDB. development of a geothermal energy field Total cost: $6.3 million. in the Eastern Visayas that will expand HUNGARY: IBRD-S29 million. Through a power plant capacity from 200 mW to 640 program of institutional development. mW and the construction of related development and implementation of a new transmission systems that will interconnect information-technology system. and most of the country. Institution- training in the development and use of strengthening measures are included. applications systems. the country's tax Cofinancing is expected from the JExIm administration will be strengthened. ($170 million). the BITS ($39 million). the thereby maximizing tax revenues in a GEF ($30 million). and an ECO to support sustainable way. Total cost: $55.6 million. commercial financing of $100 million for JAMAICA: IBRD-$35 million. Through the the project's high-voltage ACJDC converter design of measures to improve the stations. Total cost: $1,333.6 million. country's export-support systems and tPHILIPPINES: IBRD-$21 1 million. The financial sector support for investment and rapidly increasing demand for power in trade finance. the investment and export- Cebu and the Visayas region will be met development process will be accelerated through the use of indigenous and during the last major phase of trade environmentally superior geothermal liberalization in Jamaica. and constmints to energy. Institution-building assistance is local long-term sources of funds will be included. Total cost: $458.9 million. addressed. Total cost: $52 million. ZIMBABWE: IBRD-$90 million. The JAMAICA: IBRD-$13.2 million. A tax- perfonnance and reliability of the Hwange administration reform project seeks to raise coal-fired power station. the country's revenues without increasing tax rates largest generating station, will be through a broadening of the tax base. increased. thereby minimizing the severity improving the efficiency and effectiveness Summodes of Prolects Approved 137 ol' the lax udministrttion. and PAKIST'AN: IDA-$46.8 million. Physical encouragemeni of improved voluntary investments that deal with some or the compliance. Total cost: $42 million. nmost urgent environmental and KYRGYZ REPUBLIC: IDA-S60 million. inl'rastructure problems in Karachi and Implementation of enterprise privatization three interior cities in Sindh province will and restructuring will be accelerated, and be financed. Institution-building measures, ellons to stimulate private sector as well as the preparation of engineering development. improve cntcrprise studies for future investments. are govcrnunce and cfticiency. and advance included. Total cost: $58.6 million. banking sector rerorms supported. tTURKEY: IBRD-$l00 million. The LEBANON: IBRD-$19.9 million. dcvelopment of the country's dynamic Government efforts to enhance revenues private sector will be furthered through the and strengthen fiscal management will be provision or assistance for an accelerated supported through a project whose main privatization process. Measures will also focus is on (a) filling the immediate gaps in be financed to alleviate the impacI Of slatc- key personnel, skills, cquipment. and owned enterprise downsizing and physical resources: (b) assisting in divestiture on displaced worklers and their improving systems. procedures, and data families. Total cost: $129 million. bases: and (c) providing advice on future UZBEKISTAN: IBRD-$21 million. policy reforms. Corinancing is expected Institution-building and technical assistance from the UNDP ($! million) and the IMF activities in the areas or privatization and ($660.000). Total cost: $23.6 million. public enterprise reform, the legal and LESOTHO: IDA-$II million. Technical regulatory framework-, the financial sector. assistance will be supplied in support of social safety net/employme,it, and the the government's privatization and private energy and telecommunications sectors will sector development efforts. Total cost; be financed. Cofinancing is anticipated $12.4 million. from the EU ($2.6 million) and Japan ($1 MALAWI: IDA-$22.6 million. Specific million). Tota; cost: $25 million. systemic management issues that now constitute bottlenecks to efficiency and Social Sector effectiveness in the civil service will be *ALBANIA: IDA-$5.5 million. The addressed through the provision of government will be assisted in reforming its technical assistance and training. Total systems of social protection of the cost: $25.6 million. vulnerable. while, at the same time. MAURITANIA: IDA-SI.3 million. Funds configuring them in ways that make them from IDA reflows will be provided to compatible with a market-oriented supplement the public enterprise-sector economy. Total cost: $6.2 million. adjustment credit, approved in fiscal 1990 *ALBANIA: IDA-$5.4 million. The in the amount of $40 million. government's labor market-development NICARAGUA: IDA-$60 million. The program. designed to meet the needs of the government's structural-adjustment unemployed and facilitate their return to program. which aims to carry out a major employment, will be supported through the reform of the state. increase the efficiency provision of technical assistance. of financial intermediation. and improve fellowships and training. and training conditions for private sector development. materials ard equipment. Total cost: $6 will be supported. million. NICARAGUA: IDA-$7.6 million. Funds t*ECUADOR: IBRD-$30 million. from IDA reflows will be provided to Substantial immediate and longer-term supplement the second economic recovery benefits will be generated for the poor credit. approved in fiscal 1994 (see above). through more than 2.700 subprojects #PAKISTAN: IBRD-S150 million: IDA- expected to 'oe financed by the Emergency $100 million. The government's reform Social Investment Fund (FlSE) that will program. which aims at building a sound provide basic social and physical and sustainable macroeconomic framework, infrastructu:e, social services, and training. privatization of certain public enterprises, a Cofinancing is expected from the IDB ($30 restructuring of the composition of public million). USAID ($4.5 million). Spain expenditures. continuation of a program of ($800.000). the UNDP ($100.000). and trade reform. and reallocation of public UNICEF ($100,000). while another $20.7 expenditures in favor of social services. million is being sought. Total cost: $120 will be supported. million. 138 i994 Regional Perspectives t*LAO PEOPLE'S DEMOCRATIC million). which will be mobilized with the REPUBLIC: IDA-$9.7 million. About support of the Bank's ECO guarantee. 50.000 poor pcople living in Luang Total cost: $223 million. Namtha. onc ol' the country's poorcst KYRGYZ REPUBLIC: IDA-$18 million. provinces. will benefit from a rural The government will be assisted in making infrastructure project that will provide priority replacement/expansion investments improved access to mark-es and schools, in telecommunications in such as way as to as well as better water quality and best facilitate the country's economic sanitation services. Technical assistance growth and improve service quality. and training are included. Total cost: $10.2 Institution-buiiding assistance is included. million. Cofinancing is expected from the EBRD t*PERU: IBRD-$100 million. Community- ($8 million). Total cost: $31 million. based projects in the areas of social SLOVAK REPUBLIC: IBRD-$55 million. assistance, social and economic International and national long distance infrastructure. and credits to small-scale telephone networks will be expanded and farmers and entrepreneurs-all managed by strengthened so as to relieve congested the National Fund for Social Compensation services and provide modem telecom and Development (FONCODES)-will be services to businesses. Institution-building supported. thus helping to sustain the assistance is included. Cofinancing is governments poverty-reduction efforts and expected from the EIB ($55.3 million). the mitigate the social costs of adjustmnent. EBRD ($5S million). and export credits Cofinancing is expected from the IDB ($66.2 million). Total cost: $462.3 million. ($100 million) and others ($53 millio) T, including Germany. Total cost: $495 Tourism million. *BELIZE: IBRD-$20 million. The first Te-ecommunicatiozus phase of a seven-year infrastructure- Telecommunications development program for Belize City- CHINA: IBRD-$27o million. Reforms, representing a minimal critical mass of designed to develop a modern, commercial activities in the street network (including telecommunications sector that will evolve traffic management and control). drainage increasingly toward allocation of resources system (including canals and creeks). and on the basis oF competitive market forces. coastal protection works. which will will be supported. In addition, some significantly benefit the poorer population- investments in modern technology for will be financed. Total cost: $23 million. fiber-optic long distance links and local digital switching in three provinces will be Transportation financed. Cofinancing ($1.3 million) is tBANGLADESH: IDA-$200 million. The expected from the BITS. Total cost: $623 east and west parts of the country, million. separated by the Jamuna river, will be CZECH REPUBLIC: IBRD-$80 million. connected for the first time by the International and national long distance construction of a 4.8-kilometer-long bridge, telephone networks will be expanded and thereby stimulating economic growth by strengthened so as to relieve congested facilitating interregional. cross-river services and provide modern telecom transport of passengers. freight. and services to businesses. Institution-building transmission of electricity more assistance is included. Cofinancing is economically and efficiently. Cofinancing is expected from the EBRD and the EIB ($80 anticipated from the AsDB and the OECF million each) and in the form of export ($200 million each). Total cost: $696 credits. Total cost: $891.5 million. million. JORDAN: IBRD-$20 million. The capacity tBANGLADESH: IDA-$ 146.8 million. The of the country's telecommunications total cost of road transport on the system will almost be doubled (to as many country's most travelled roads will be as 570.000 lines). and support provided to reduced by improving the road network the government in formulating and through more effective planning. design. implementing reforms leading to sector and construction (including reconstruction) development and the private provision of of road investments and more effective services. Cofinancing is anticipated from programming and implementation of road the EIB ($30 million). the JExIm ($23 maintenance. Cofinancing ($8.8 million) is million). the ODA ($6 million), the BITS expected from the ODA. Total cost: $252.2 ($4 million). and commercial sources ($50 million. Summades of Projecis Approved 139 BRAZIL: IBRD-$220 million. Road- and provincial roads and by expanding the program management in the states of capacity of the road network. Institutional Maranhao. Piauf. and Tocantins will be strengthening measures are included. Total strengthened-with a view to avoiding cost: $680.5 million. further deterioration of the important INDONESIA: IBRD-$l0l.5 million. Access public assets that the paved road networks to commercial mark-ets for the agriculture- represent-through more efficient dependent rural population will be allocation of resources to maintenance and improved by enhancing the capacity of their etfective management. Total cost: government agencies that manage the $602.8 million. development of rural-district roads and by tCHINA: IBRD-$380 million. Transport improving the quality and capacity of the congestion will be relieved and the rmad network in selected rural districts. integration of interregional commerce Total cost: $206.8 million. improved through the construction of 340 KAZAKHSTAN: IBRD-$40 million. Public kilometers of the national trunk highway transport service in the countrv's three system in the principal north-south main cities will be restored to adequate corridor. In addition. fourteen provincial levels of service quality. and key highways interconnecting with the national improvements in urban public transport- highway will be upgraded. Technical sector policies and institutions will be assistance and training are included. Total implemented. Technical assistance and cost: S894.7 million. training are included. Cofinancing tCHINA: -IBRD-SI50 million. A second ($600.000) is expected from the EU. Total Shanghai Metropolitan Transport Project cost: $42.4 million. will help finance construction of about LAO PEOPLE'S DEMOCRATIC twenty-two kilometers of a four-lane REPUBLIC: IDA-530 million. The expressway around the city. efficiency of the country's road network implementation of traffic-management and will be increased through specific road traffic-safety measures. and investments in improvements and through strengthening of public transport. Technical assistance is institutional capabilities to plan. manage. included- Total cost: $657.1 million. and maintain the national highway CHINA: IBRD-S140 million. The continued network. Total cost: $33.7 million. development of road infrastructure in MADAGASCARL IDA-$13.1 million. Fujian province will be supported. and an Facilities damaged by two cyclones in action plan for the strengthening of the early 1994. including several major roads provincial road-construction industry that represent lifelines to the poorer developed. Technical assistance and regions. will be rebuilt. and measures to training are included. Total cost: $528.8 minimize potential damage from future million. cyclones will be strengthened. Total cost: ESTONIA: IBRD-$12 million. A two-year $28.8 million.- program of urgently needed highway- tMALI: IDA-S65 million. The government maintenance work will be financed. will be supported in its efforts to thereby avoiding costly rehabilitation or strengthen transport-sector management reconstruction at a later date. In addition. and performance. restructure transport- the efficiency of the country's road- sector parastatals. modify the regulatory maintenance operations will be improved, and institutional framework to promote Cofinancing. totaling $2 million. is increased private sector involvement in the expected from Denmark. Finland. and provision of services and the execution of Sweden. Total cost: $25 million. works. and rehabilitate and maintain a INDIA: IBRD-S94 million. An enabling priority network of transport infrastructure. environment for container transport will be Cofinancing is expected from the IsDB esLablished. and the capacity and efficiency ($53.6 million). the EDF ($50 million). of long-haul transport of high-value general Germany ($19.8 million). France ($17.9 cargo increased. Cofinancing (S4 million) is million). the ADF ($14.3 million). BOAD expected from the Netherlands. Total cost: ($10.7 million). Canada (S7.1 million). and $151 million. the OPEC Fund for International tINDONESIA: IBRD-$350 million. Development (amount to be determined). Problems caused by the rapid growth in Total cost: $305.7 million. road traffic will be eased and road- MONGOLIA: IDA-$30 million. Key transport system costs reduced by constraints in the transport sector will be improving the service quality of national addressed. in particular. by reversing the 140 1994 Regional Perspectives decline of the quality and quantity of RUSSIA: IBRD-S300 million. About 1.500 transport services in railways. urban kilometers of priority federal roads will be transport. trucking. and roads. Institution- rehabilitated. maintenance and road-safety building assistance is included. Total cost: improvements will be carried out on about $36.7 million. -9.500 kilometers of federal roads and 500 t*MOZAMBIQUE: IDA-5188 million. Road kilometers of regional roads. and the transport will be improved. selected past commercialization and privatization of the road investments protected, and road-construction industry will be employment opportunities for the rural promoted. Technical assistance. training- poor created through civil work-s programs and studies are included. Cofinancing ($5 to rehabilitate priority roads and eliminate million) is expected from the United States the huge back-log of periodic maintenance. Federal Highway Administration. Total Capacity-building assistance is included. cost: $340 million. Cofinancing is anticipated from the EU SENEGAL: IDA-53.7 million. Funds from ($97.9 million). the AfDB ($83.4 million). IDA reflows will be provided to USAID ($25 mitlion). the CFD/South supplement the transport-sector adjustment Africa ($17 million). BADEA ($14.9 credit, approved in fiscal 1991 in the million). the KFAED ($14 million). and amount of $65 million. Germany ($9 million). Total cost: $814.6 tTANZANIA: IDA-$170.2 mriillion. Support million. will be provided for policy anid institutional tNEPAL: IDA.-$505 million. Through a reforms to improve tran-port-sector program of road maintenance and administration. organization. and rehabilitation. vehicle-operating costs and management: upgrading, rehabilitation. and delays associated with a deteriorated road backlog periodic maintenance of high- system will be reduced. and much-needed priority roads: measures to rehabilitate and. rural employment will be generated. improve rura transport infrastructure: and Institutional strengthening assistance is minimum civil aviation investments to included. Cofinancing is expected from the ensure safety and continued scrvice. ODA ($12.4 million). the SDC ($2.8 Cofinancing is anticipated from the EU million), and the UNDP ((78.1 million). the AfDB ($108.9 million). cost: $81.1 million. NORAD ($41.7 million), the OPEC Fund PANAMA: IBRD-$60 million. Transport for International Development (S38.3 efficiency will be improved and transport million). the OECF ($19.8 million). the costs reduced throughout the country as a KFAED ($14.9 million). FINNIDA ($5A result of a roads-rehabilitation project that million). and the SDC (S5.1 million). Total will finance a four-year time-slice of the cost: $650.3 million. government's publicly financed road UGANDA: IDA-S75 million. The program. Cofinancing (S$S0 million) is government's economic recovery program being provided by the 1DB. Total cost: will be supported by improving the basic $406 mitlion, road infrastructure and by ensuring that it. tPARAGUAY: IBRD-$65 million. Almost along with the railferry infrastructure. will 200 kilometers of roads will be either be well maintained and efficiently improved or rehabilitated. and. through managed. Cofinancing ($4.6 million) is provision of institution-building assistance. anticipated from the NDF. Total cost: $99 the capacity of the Ministry of Public million. Works and Communications to deliver a tVENEZUELA: IBRD-$l00 million. By good-quality. well-managed road network improving and strengthening national and will be improved. Total cost: $90 million, local institutions engaged in the planning. PERU: IBRD-S150 million. The financing. design. and operation of urban rehabilitation of 725 kilometers of main transport systems. the quality and efficiency highways. as well as of railway facilities. of urban transport in Venezuelan cities will will be supported. and new initiatives in be improved. Total cost: $200 million. the areas of road maintenance. trafic tVIET NAM: IDA-$1585 million. Two safety. and nonmotorized transport will be critical segments (totaling 430 kilometers) undertaken. In addition. the process of of the country's main highwav will be railway privatization will be accelerated. rehabilitated. ferry operations improved at Cofinancing is anticipated from Gennany two MeLong delta crossings. and highway- ($38 million) and the OPEC Fund for maintenance capacity strengthened through International Development ($5 million). the provision of technical assistance and Total cost: $242 million, equipment. Total cost: $176 million. Summares of Projects Approved 141 Urban Development from the OPEC Fund for International ALBANIA: IDA-SI5 million. To help Development and the EDF. Total cost: develop critical first steps in developing a S20.4 million. marklet-based housing sector. the CHILE: IBRD-$l0 million. Reforms that completion of construction or 4.500 will increase the resources and apartments-originally intended as public responsibilities being transferred to rental units but which will now be sold to maunicipalities and regions will be individual households under mortgage and supported through a pilot project that seeks condominium arrangements-will be to increase the institutional and technical financed. Cofinancing ($1.5 million) is capacity of municipal governments to expected from bilateral agencies. USAID assume greater responsibilities and to in particular. Total cost: $40 million. improve the national govemmentfs t*ARMEN[A: IDA-$2S8 million. Funds will capacitv to accomplish its main be provided to help finance reconstruction macroeconomic goals at the municipal of housing. infrastructure. and factory level. Total cost: $20 million. shells in the area destroyed by the 1988 CROATIA: IBRD-SI28 million. Some or the earthquake: a plan for the further conditions necessary for restoring reconstruction of the earthquak-e zone will productivity following war-related be developed: and reform of housing-sector destruction will be reestablished through policies designed to promote the transition reconstruction of basic infrastruciure. the to a mark-et-oriented economy will be replacement of vital agricultural assets. and supported. Vulnerable groups will be given by removing a major constraint to the priority in the allocation of apartments. rcsumption of normal tourism levels. In Cofinancing (S400.000) is being provided by addition. a return of displaced households Japan. Total cost $46 million. to their communities will be made possible t BOLIVLA: IDA-S42 million. The through the reconstruction of housing and government's efforts to strengthen provision of supporting infrastructure. municipal management and improve the Total cost: $205.3 million. delivery of urban services will be t'THE GAMBIA: IDA-$l t million- supported through a project that aims at Unemployment will be reduced by creating enhancing the capabilities of municipalities. temporary jobs for unsktilled workers in the local utilities. and service enterprises: public works and construction sectors. strengthening financial intermediation in thereby maintaining infrastructure assets the sector. and encouraging the financing that might disappear for lack of of municipal infrastructure in unserviced maintenance due to financial constraints. peri-urban areas. Total cost: $58 million. Local capacity building. fumished through tBRAZIL: IBRD-SI50 million. Municipal provision of training and technical support financial management in Minas Gerais state for small and medium-sized firms, is will be strengthened through technical included. Cofinancing. in the amount of v2 assistance and training. while million. is being explored with DANIDA. environmental management will be the EDF. the JICA. the UtNDP. and improved through the development of a USAID. Total cost: S145 million. coherent state strategy for local provision GHANA: IDA-S38.5 million. Infrastructure of water and sewerage services, investment and services-roads. drainage. sanitation. in priority basic sanitation infrastructure. gearbage collection and disposal. bus parks. and technical assistance and training. Total and public markets-will be improved in cost: $333.1 million. eleven secondary cities. thus improving t*CHAD: IDA-S17.4 million. Existin, living conditions for their more than 500.000 infrastructure will be protected from residents. Institutional strengthening of the further decay through a maintenance and eleven local governments involved is rehabilitation program. and additional included. thereby furthering the urgently needed social infrastructure. government's decentralization effons. identified and maintained by the Cofinancing ($8.3 million) is expected from beneficiaries. will be developed. In Germany. Total cost: $55.5 million. addition. labor-intensive public service tINDIA: IDA-S246 million. The government schemes will generate employment of Maharashtra's rehabilitation program for opportunities. and training and technical the victims of the September 1993 support will be provided to small and earthquake. which ktilled an estimated medium-sized enterprises and beneficiaries. 8.000 people and destroyed or damaged Cofinancing (S2 million) is being sought more than 130.000 hom-es. will be 142 1994 Regionl Perspecties supported. Cofinancing is expected from Water Supply and Sewerage the United Kingdom (fl(l million) and the ALBANIA: IDA-S1 1.6 million. Water AsDB (S600.000). Total cost: $328 miltion, shortages nnd associated health risks to the "t*INDONESIA: IBRD-S175 million, population in the district of Durres will be Services and the quality of life for about eliminated, and a strong local institutional 600.000 of Surabava's inhabitants- framework for the provision of water especially those living in the poorer areas- supply and sewverage services established. will improve through a project that will thereby ensuring that the improvements provide water-supply. sanitation. and will be sustainable. Total cost: $19.5 drainage improvements: and construction million. of access roads and paths. The ALGERIA: IBRD-SI 10 million. Water- implementation of a land-management supply systems in ten cities and twenty- program and provision of technical four sewvage-treatment plants located assistance is included. Cofinancing ($I74.8 throughout the country will be million) is anticipated from the OECT. rehabilitated. In addition. the institutional Total cost: $617.6 million. arrangements in the urban water sector ill '*IlNDONESIA: IBRD-5174 million. The be rationalized with a view to achievint inhabitants of Semarang and Surak-arta. full cost recovery by autonomous. self- and disproportionately the poorer financing utilities. Total cost: S170 million. inhabitants. will benefit directly from tBENIN: IDA-S9.8 million. Rural water- improvements to the quality. reliability. supply and sanitation facilities will be built and accessibility of urban infrastructure in smaller and poorer communities. services. In addition. technical assistance hygiene education provided to communities will be provided for implementation interested in improving their w%ater supply support and a strengthening of institutional and sanitation facilities. and capacity capacity. Total cost: $320.8 million. building provided to all actors in the sector tMADAGASCAR: IDA-S18.3 million. A who will need to acquire new sklills in tested model for the efficient contracting- promoting. planning constructing. out of infrastructure maintenance will be managing. and monitoring rural water created for. and implemented in. supply and sanitation facilities. Corinancing Antananarivo. resulting in the rehabilitation ($4 million) is anticipated from Denmark. of about 300 klilometers of essential urban Total cost: S15 million. roads and creating about 70.000 t*BRAZIL: IBRD-S154 million. The quality manmonths ofjobs. In addition. domestic of life for about 1.2 million urban small and medium-sized construction and inhabitants of Espirito Santo state (and engineering enterprises will be developed. et, ecially for some of the poorest Cofinancing ($200.000) is anticipated frorn inhabitants) will be improved. the. the FAC. Total cost: $20.1 million. incidence of waterborne disease reduced. ,MEXICO: IBRD-5200 million. Solid waste and the quality of water for human services will be improvcd for an estimated consumption and recreational uses II million people in the twenty-three cities improved through a project that will help that are expected to participate on a first- finance the state water cornpany's 1994-99 come. first-served basis. Institution- investment program. Institution-building strengthening measures-at the federal and assistance is included. Total cost: $308 local government levels and for operating million. agencies-are included. Total cost: $415.5 BULGARIA: IBRD-598 million. The million. autonomy and commercial orientation of .t*TOGO: IDA-S26.2 million. the countnr"s twenty-nine regional w ater Implementation of the government's and sewerage companies will be increased. emerging urban development policy will be and their management made more supported through the execution of prioritv accountable to local authorities. In urban works through labor-intensive addition. selected water and sewerage schemes that focus on poor areas. the facilities will be rehabilitated and upgraded. promotion of small contractors in the Total cost: $131 million. construction sector. and the active t*GHANA: IDA-S"2 million. Basic water participation of local residents. community and sanitation infrastructure will be groups. and NGOs in neighborhood provided to communities. schools. and environmental improvement activities, health clinics. while health and the Capacity-building assistance is included; environment will be enhanced through the Total cost: S29 million, improvement of drinking-water quality. Summaries of Projects Apptoved 143 personal hygiene. and excreta disposal. waler utilities, is included. Total cost: $770 Institution building-with a focus on million. poverty reduction and women's *MOROCCO: IBRD-$160 million. Urban participation-is included. Cofinancing water-supply systems operated by six of ($1.7 million) is expected from Canada. the country's sixteen municipally owned Total cost: $27 million. water-distribution facilities (r6ggies) will GUYANA: IDA-$17.5 million. The quality either be rehabilitated or expanded. thus and reliability of potable water in selected providing access to safe water for some 9.6 regions of the country will be improved million people. Rural water-supply facilities through the upgrading of wvater-supply will also be rehabilitated and expanded. facilities. and the efficiency of water-sector especially in poor areas of the country. institutions will be enhanced through directly benefiting 3 million people. establishment of procedures and methods Institution-building assistance is included. for ensuring proper system operations and Cofinancing. totaling $84 million. is maintenance. Cofinancing is anticipated expected from the OECF and the AfDB. from the CDB ($6.5 million) and the ODA Total cost: $353.6 million. ($6 million). Total cost: $33 million. t*UGANDA: IDA-$42.3 million. By MEXICO: IBRD-$350 million. A second extending the rehabilitation and expansion water supply and sanitation sector project of water supply and sanitation facilities in is expected to benefit 10 million people eleven small (and two larger) towns, health directly by helping control cholera and conditions will be improved. poverty reducing significantly other gastrointestinal reduced. the lot of women improved, and diseases. Technical assistance to environmental degradation reduced. Total strengthen federal agencies, as well as local cost: $48 million. 144 1994 Regional Pemspecfives Table 5-20. Projects Approved for IBRD and IDA Assistance in Fiscal Year 1994, by Region and Country (amounts in millions of US dollarsl IBRD loans IDA credits Total Region and country Number Anount Number Amount Number Armount Africa Benin ............................ - - 4 42.8 4 42.8 Burkina Faso ..................... - - - 3 05 3 80.5 Cameroon ........................ - - 2 176.0 2 176.0 Cape Verde ...................... - - I 8.1 I 8.1 Chad .......................... . - - 3 55.9 3 55.9 Comoros ......................... - 2 2 18.1 Congo .... ...................... - I 100.0 I 100.0 C6te d'lvoire ..................... .- 3 376.0 3 376.0 Ethiopia .......................... - - 1 748 I- 74.8 Gabon .............-------.-. 1 30.0 - - I 30.0 Gambia. The ..................... - - 2 13.6 Z 13.6 Ghana .....- ........ - 3 87.7 3 87.7 Guinea.- - .......................... 1 24.6 1 24.6 Kenya ........................... - - 1 64.0 1 64.0 Lesotho .......................... - - I 11.0 I 11.0 Madagascar.- .......................- 3 83.3 3 83.3 Malawi ........................... - - 1 26.9 I 26.9 Mali .................... . - - 3 110.0 3 110.0 Mauritania ....................... - - 1 195 1 19.5 Mauritius ................... .. 1 7.7 - - 1 7.7 Mozambbique ....... ........._.. _ - 4 427.0 4 4Z7.0 Niger ....................- ..- 2.. 66.4 2 66.4 Rwanda .- ..- - -2 27.0 2 27.0 Senegal .......................... - - 1 28.7 1 28.7 Sierra Leone ....... .........-..... I 50.2 I 50.' Tanzania .....- , .- 2 194.7 2 194.7 Togo --.---------- - - 1 26.2 1 26.2 Uganda.- - 5 2.2.4 5 262.4 nba........................... 2. 2. Zambia.----------------3 224.8 - 22-4.8 Zimbabwe... ..................... 1 90.0 - - 1 90.0 Total .......................... 3 127.7 57 2.680.2 60 2.807.9 East Asia and Pacifc Cambodia ........................ - - 1 62.7 1 62.7 China ...8 ............. 2.145.0 6 925.0 14 3.070.0 Indonesia ........................ 11 1489.8 - - I1 1.489.8 Korea. Republic or ................ 3 380.0 - - 3 380.0 Lao People's Democratic Republic - 3 48.4 3 48.4 Malaysia ............. . 2 120.0 - - 2 120.0 Mlongolia ......................... - - 2 50.0 2 50.0 Papua NewGuinea ................ 1 11.0 - - I 11.0 Philippines ....................... 3 478.0 - - 3 478.0 Viet Nam . ..... ...... ... - - 3 324.5. 3 324.5 Total ........................ 28 4.623.8 15 1.410.6 43 6.034.4 South Asia Bangladesh ............... - -- 597.1 3 597.1 Bhutan.. - - I 5.4 I 5.4 India .----------- 1 94.0 6 834.8 7 928.8 Nepal ..... - - 3 97.2 3 97.2 Pakistan .......................... 2 380.0 3 361.5 5 741.5 Total .......................... 3 474.0 16 1.896.0 19 2.370.0 Prcjects Apprcned, by Region 145 1BRD loans IDA credits Total Region and country Number Amnount Number Amount Number Amount Europe and Central Asia A l baia------------------ 5 47.1 5 47.1I A r mnae-------- ia---- - - I 28.0 1 28.0 Belarus .............. 3 170.2 - -3 170.2 Bulgaria .2.............14.0 - -2 148.0 C r o a tia............... I 1128.0 - 1 128.0 Czech Republic 1......... 80.0 - ~ - I 80.0 Estonia .2............. 50.4 - - 2 50A4 Hungarv-------------- 2 129.0 - - 2 129.0 Kazakhstan------------- 4 273.7 - - 4 273.7 Kyrgyz Republic ---------- - - 2 78.0 2 78.0 Latvia.--------------- 1 25.0 - - 1 25.0 Lithuania .........4.........I 26.4 Mlacedontia. FYR of.-------- 1 40.0 - 40.0 1 80.0 Moldova .............. 60.0 - - 1 60.0 Poland.-------------- 1 146.0 - -1 146.0 Romania.............. 3 400.6 - -3 400.6 Russia............... 6 1,520.0 - -6 1-520.0 Slovak Republic.---------- 2 135.0 - -2 135.0 Slovertia.1------------ 80.0 - -1 80.0 Turkey.1 ~ ~~~~~~ ~~ 100.0 - I 100.0 Uzbekistan.------------ I 21.0 I 211.0 Total .............. 34 3-533-3 S 193.1 42 3.726.4 Latin America and the Caribbean Argentina.------------- 3 608.5 - -3 608.5 Barbados.............. 1 7.8 - -I 7.8 Belize ............... 1 20.0 - - 20.0 Bolivia.-------------- - - I 51.4 I 51L4 Brazil ............... 7 1.136.6 - .- 7 1.136.6 Caribbean region .1... ..... 20.0 - 11.0 1 31.0 Chile.--------------- I 10.0 - - I 10.0 Colombia.............. 3 159.0 - - 3 159.0 Costa Rica.------------ I 22-0 - - 1 22.0 Ecuador.............. 3 64.0 - - 3 64.0 El Salvador.2----5---------- - 2 52.5 Guyana ...............- 2 35-3 2 35.3 Hondums ............. - - 1 87.9 1 87.9 Jamfaica .............. 2 48.2 - 2 ' 48-2 Mexico .............. S 1.530.0 - - 5 1-530.0 Nicaragua ......... .... - - 3 126.6 3 126.6 Panama.-------------- 1 60.0 - - 1 60.0 Paraguay.2 115.0 - - 2 115.0 Peru.--------------- 3 284.0 - -3 284.0 Uruguay.------------- 3 107.5 - -3 107.5 Venezucla.------------- 2 189.4 - -2 189.4 Total .............. 41 4.434.5 7 312-2 48 4.746.7 (continuwed) 146 1994 Regional Perspectives Table 5-20 (conzinuted) IBRD lans IDA cn.dits Total Rcgion and country Number Amount Number Amount Number Amount Middle East and North Africa Algena ........................... 2 -140.0 - - 2 140.0 Egypt .....,.1 ............... 54.0 - 67.0 1 121.0 Jordan ...................2 100.0 - - 2 100.0 Lebanon ......2 ............... 77.1 - - 2 77.1 Morocco ......................... 5 412.0 - - 5 412.0 Tunisia .......................... 3 267.5 - - 3 267.5 Yemen .......................... - - 1 33.0 1 33.0 Total .......................... 15 1.050.6 1 100.0 16 1.150.6 Grand total 12...................... 1 4 14243.9 104 6,592.1 228 20.836.0 - 2am~~ Non: Supplements arm included in the amount but are not counted as sepwate leuding operations. Joint IBRDJIDA oper- adons are counted only once. as IBRD operations. Trends In Lending 147 Table 5-21. Trends in Lending, LBRD and IDA, Fiscal Years 1992-94 (amounts in millions of US dollars. fiscal years) 199! 1993 1994 Sector IBRD IDA Total IBRD IDA Total IBRD IDA Total millions of US dollars Agriculture 2,525.7 1.3783 3.904.0 1,918.8 1,347.9 3.266.7 2.233.3 1,674.0 3.907.3 Education 1299.6 584.1 1t883.7 968.0 1,038.2 2.006.2 1,409.9 658.1 2.068.0 Energy Oil. gas. and coal 879.0 115.6 994.6 939.8 35.5 975.3 1,202.1 186.2 1388.3 Power 2.824.9 238.0 3.062.9 2.093.0 520.0 2,613.0 1,368.5 - 1,368.5 Environment - - - 11.5 54.8 66.3 730. 17.3 747.8 Financial sector 1.102.0 423.3 1,525.3 637.0 318.1 955.1 1,093.5 411.1 1,504.6 lndustry 142.7 200.0 342.7 250.0 83.5 333.5 422.7 272.2 694.9 Mining and other extractive - 6.0 6.0 250.0 12.0 262.0 14.0 - 14.0 Multisector 1.970.0 1,460.1 3.430.1 2.98D.0 620.8 3,600.8 606.3 815.9 1.422.! Population. health. and nutrition 307.0 654.7 961.7 706.8 1,104.8 1.811.6 366.0 519.7 885.7 Public sector management 583.4 172_6 756.0 765.0 247.5 1.01275 370.6 322.6 693.2 Social sector - - - - - - 130.0 20.6 t50.6 Telecommunications 375.0 55.0 430.0 264.0 89.1 353.1 405.0 18.0 423.0 Tourism - - - 130.0 - 130.0 20.0 - 20.0 Transportation 1,744.7 550.8 2.295.5 3.133.1 712.6 3,845.7 2.162.5 1.130.8 3.293.3 Urban development 868.0 333.8 1,201.8 1,139.0 171.2 1,310.2 837.0 4.2.4 1,279.4 Water supply and sewerage 534.0 377.4 911.4 758.5 395.4 1153.9 872.0 103.2 975.2 Total 15,156.0 6,549.7 21.705.7 16.944.5 6.751.4 23,695.9 14,243.9 6,592.1 20.836.0 percentage distribution Agriculture 16.7 21.0 18.0 11.3 20.0 13.8 15.7 25.4 18.8 Education 8.6 8.9 8.7 5.7 15.4 85 105 10.0 10.0 Energy Oil. gas. and coal 5.8 1.8 4.6 5.5 0.5 4.1 8.4 2.8 6.7 Power 18.6 3.6 14.1 12.4 7.7 11.0 9.6 - 6.6 Environment - - - 0.1 0.8 0.3 4.5 0.3 3.6 Financial sector 7.3 6.5 7.0 3.8 417 4.0 7.7 6.2 7.2 Industry 0.9 3i1 1.6 1.5 1.2 1.4 3.0 4.1 3.3 Mining and other extractive - 0.1 - 1.5 0.2 1.1 0.1 - 0.1 Multisector 13.0 22.3 15.8 17.6 9.2 15.2 4.3 12.4 6.8 -Population. health. - and nutrition 2.0 10.0 4.4 4.2 16A 7.6 2.6 7.9 4.3 Public sector management 3.8 2.6 35 4.5 3.7 4.3 2.6 4.9 3.3 Social sector - - - - - - 0.9 0.3 0.7 Telecommunications 2.5 0.8 2.0 1.6 123 1.5 2.8 0.3 2.0 Tourism - - - 0.8 - 0.5 0.1 - 0.1 Transportation 113 8.4 10.6 18.5 10.6 162 15.2 .17.2 15.8 Urban development 5.7 5.1 5.5 6.7 2.5 5.5 5.9 6.7 6.1 Water supply and sewerage 35 5.8 4.2 4.5 5.9 4.9 6.1 1.6 4.7 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 -Zero. 148 1994 RegIonol Perspectives Tablc S-22. Projects Approved for IBRD and IDA Assistance in Fiscal Year 1994, by Sector (millions of US dolars-) Sector IBRD IDA Toutl Agriculture Algeria ............ ... 30.0 - 30.0 Belarus .......................................... 41.9 - 41.9 Benin .................................. - 9.7 9.7 Bhuan .. - 5.4 S.4 Bulgaria ............................... 50.0 - 50.0 China .......................... ................15. I0.0 150.0 China .- 200.0 200.0 China. 460.0 - 460. China .- 205.0 205.0 China - 150.0 150.0 China ... - 110.0 110.0 Colombia .39.0 - 39.0 C6te d'Ivoire ....................... ................... 21.8 C6te d'lvoire ................................ - ''1 Ecuador. , ------------------- 20.0 - 20.0 Egypt .54.0 67.0 121.0 Ghana - 215 21.5 Ghana ...........5.............................. - 5-7 5.7 b Guyana .- 15.0 15.0 Honduras.. - 60.0 60.0 Honduras .............. - 27.9 27.9 h India.------------------------ 258.0 258.0 India ---- .......... ........................ ............. - 78.4 2 5X 0 India..7- 77.4 India ............................................. - 47.0 47.0 Indonesia .65.0 - 65.0 Indonesia ................................ 165.7 - 165.7 Indonesia ............... 55.0 - 55.0 Lao People's Democratic Republic ................... - 8.7 8.7 Latvia ....20 -........ 5..... .0 Lebanon ................. 57.2 - 57.2 Malaysia .70.0 - 70.0 Mali .............................................. - 20.0 20.0 Mauritania .................. .......... . - 18.2 18.2 Mexico ........................................... 200.0 - 200.0 Morocco .......................................... 100.0 - 100.0 Morocco .121.0 - 121.0 Morocco .25.0 - 25.0 Nicagua.. - 44.0 44-0 Poland .146.0 - 146.0 Russia ....2................. 240.0 - 240.0 Russia ............8................ ...... 8 0.0 - 80.0 Rwanda ..... .......... - 15.0 15.0 Tanzania .....-.............................. - 24.5 245 Tunisia ........................................... 120.0 - 120.0 Tunisia ...2......- ..................... 5 Projects Approved, by Sector 149 Sector IBRD IDA To1t1 Agriculture reondinued) Uganda .................................. - 14.0 14.0 Uruguay .................... . 41.0 - 41.0 Viet Nam ................................ - 96.0 96.0 Total ................................... 2.2333 1.674.0 3.907.3 Educatiun Albania .............................. - 9.6 9.6 Barbados .................................. 7.8 - 7.8 Benin ................................... - 18.1 18.1 Brazil ................................... 206.6 - 206-6 Bmzit .. 150.0 150.0 Brazil .................................. 96.0 Colombia ................................. 90.0 -90.0 C6te d'tvoire .............................. 17.0 17.0 C6te d'lvoire ................................ 100.0 1, C6te d'lvoire .............................. - 85.0 85.0 b Indonesia .............................2 77 _ .71 Indonesia .................. 58.9 - 589 Kenya .................................. - 21.8 21.8 Kenya ..42............2....... 42,2 42.24 Korea- Republic of .........................o 190.0 - 190 Mcxico ................. 412.0 - 412.0 Nepal ..... , 20.0 20.0 Niger .. 41A4 41.4 Pakistan..- 20.0 200.0 Romania ....5.050 D0.................. - 50.0 IJruguay .................................. 31-5 31.5 Venezuela .................................. 89.4 - 89A Viet Nam .......... ... - 70.0 70.0 Yemen ..- ............. 33.0 33.0 Total ...................... ........ 1.4099 658.1 2.068.0 Ener Oil. gas. and coal China ................. 255.0 -255.0 Estonia .......................... .. 38A - 38.4 Ethiopia ................. ..... - 74.3 74.3 Hungary .................................. 100.0 - 100.0 Jordan ................................. 80.0 - 80.0 Kazaklhstan ............................... 15.7 - 15.7 Lithuania ....2..................... 26.4 - 26.4 Madagascar ................................ - 51.9 51.9 Mozamrbiquc . . , 30.0 30.0 Papua Ncw Guinea ......................... 11.0 - 11.0 Romania .................................. 175.6 175.6 Russia.~~~~~~~~~~~~~~~~~500. 5;00.0 Russia ................................... soO.0 _ sw. Zambia ............_....... 30.0 30.0 Total ... 1.202.1 186.2 1.38;.3 (contirrned) 150 1994 RegIonal Perpectives Table 5-22 (con!tbined,) Sector IBRD IDA Totl Energy (continued) Power China ................. 350.0 - 350.0 Indonesia ................................. 260.5 - 260.5 Pakistan . .230.0 230.0 Philippines . .211.0 - 211.0 Philippins . .227.0 - 227.0 Zimbabe . .90.0 - 90.0 Ttal. 1.368.5 - 1.368.5 Environment Chia .160.0 - 160.0 Gambia. The .............................. - 2.6 - 2.6 Indonesia .56.5 - 56.5 Korea. Republic of .90.0 - 90.0 Mexico .368.0 - 368.0 Morocco. .6.0 - 6.0 Ptaistan - 14.7 14.7 Paraguy .50.0 - 50.0 Totl .73035 17.3 747.8 Financial sector Argentina .500.0 - 500.0 Argentina.. 85 - 8.5 Canrbbean Region .............. 20.0 11.0 31.0 Colombia.30.0 - 30.0 ooba.................................. 00--3. C6te d-lvoire .- 50.0 50.0 b C6te d'lvire .- 100.0 100.0 6 Korea. Republic of .100.0 - 100.0 Mozambique .- 200.0 200.0 Mozambique - 9.0 9.0 Russia .200.0 - 200.0 Rwanda ....,,,,,.................... - 12.0 12.0 Slovenia .80.0 - 80.0 Tunis .120.0 - 120.0 Uganda .... ,,, , ,,,,, 1................... _.1 I Uruguay. 350 - 35.0 Zambia .- 18.0 18.0 Zambia.. 19.0 10.0 Total .1.093.5 411.1 1.504.6 Industry Bangladesh . .- 247.0 247.0 Bangladesh .....................-........... 3.3 363 Comoros . .- 5.1 5.1 Mauritius .---------------- 7.7 - 7.7 Philippines ...... ................ 40.0 - 40.0 Romania ............... 175.0 - 175.0 Russia ................ 200.0. - 200.0 Zambia . . - 16.8 16.8 Total ............................... 422.7 272.2 694.9 Mining and other earactive Ecuador .140 - 14.0 Total .1-............. ... 14.0 - 14.0 Projects Approved. by Sector 151 SeczorZ IBRD IDA Totul Multisector Belarus .... 8.3 - 8.3 Belarus ...... .............. 120.0 - 120.0 Bolivia ................. - 9.4 9,4 Burkina Faso . .2............. . -5.0 25.0 Cambodia ...... 62.7 62.7 Cameroon - 75.0 75.0 Cameroon 5- 0.0 50.0 Caineroon - 51.0 51.0 Chad. - 0.0 20.0 Congo.. - 00.0 100.0 El Salvador .50.0 - 50.0 Ethiopia .. , 0.5 0.5 Ob Gabon .30.0 - 30.0 Guyana. - 2.8 .8 b Kazakhstan. 38.0 - 38.0 Kazakhstan .180.0 - 180.0 Macedonia. FYR or ..............-. 40.0 40.0 80.0 Malawi ..4.3 4.3b Mali .. 25.0 25.0 Moldova .60.0 - 60.0 Mongolia.. - 20.0 20.0 Niger .- 25.0 25.0 Senegal .. 25.0 25.0 Sierra Leone - 50.0 50.0 Sierra Leone - 0.2 0.2 b Slovak Rcpublic .80.0 - 80.0 Uganda ........ - 80.0 80.0 Zambia .- 150.0 150.0 Total .606.3 815.9 1.4".2 Population. Health, and Nutrition Argntina .100.0 - 100.0 Brazil .160.0 - 160.0 Burkina Faso - 9.2 29.2 Burkina Faso - 26.3 26.3 Chad .. - 18.5 18.5 China .......-............................ - 110.0 110.0 Como ros .. - 13.0 13.0 Costa Rica .22.0 - 2.0 Guinea.. - 24.6 24.6 India .. 117.8 117.8 India.. - 88.6 88.6 Malaysia ............ 50.0 - 50.0 Nepal .. - 26.7 26.7 Nicaragua.. - 15.0 15.0 Peru .34.0 - 34.0 Uganda . - 50.0 50.0 Total .... 366.0 519.7 885.7 (continued) 152 1994 RegIar3l Perspectives Table 5-22 (contintted) SecIor IBRD IDA Total Public-sector Management Benin ............- S5.2 5.2 Capc Verde. . I 8.1 El Salvador .2.5 2.5 Hungary. 9.0 - 29.0 Jamaica. 35.0 - 35.0 Jamaica. .13. - 13.2 - Kyrgbz Republic .......... - 60.0 60.0 Lebanon. 9.9 - 19.9 Lesotho .- 11.0 11.0 Malawi ...................................-22.6 22.6 Mauritania .- 1.3 1.3 h Nicaragua .- - 60.0 60.0 Nicaragua .- 7.6 7.6 h Pakistan .- 46.8 46.8 Pakistan .150.0 100.0 250.0 Turkey .100.0 - 100.0 Uzbekistan. 21.0 - 21.0 Total. 370.6 322t.6 693.2 Social Sector Albania ................................. 5.4 5.4 Albania .- 5.5 5.5 Ecuador ... 30.0 - 30.0 Lao People's Democratic Republic - 9.7 9.7 Peru .... 100.0 - 100.0 Total ................................... 130.0 20.6 150.6 Telecommunications China .250.0 - 250.0 Czech Republic .80.0 - -0.0 Jordan .20.0 - 20.0 Kyrghz Republic .- 18.0 18.0 Slovak Republic .55.0 - 55.0 Total ........ 405.0 18.0 423.0 Tourism Belize. 0.0 o 20.0 Total ...... ........ 0.0 Transportation Bangladesh.. 146.8 146.8 Bangladsh .- 200.0 200.0 Brazil ................................2..... 20.0 - 220.0 China ... . . ........... 380.0 - 380.0 China ................................... 150.0 150.0 China .140.0 - 140.0 Estonia. 120 - 12.0 India .94.0 - 94.0 Indonesia .................................350.0 - 350.0 Indonesia .101.5 - 101.5 Kazaklhstan .40.0 - 40.0 Lao People-s Democratic Republic - 30.0 30.0 Madagascar ...... .......................-.13.1 13.1 Projects Approved, by Sector 153 Sector" IHRD IDA lt .al Transportation (rainrbuwdJ M ali a.. . 65.0 65.0 Mongolia. - 30.0 30.s Mozambique ..- 8I .0 188.0 Ncpal ..- 50.5 50.5 Panama ...61.0 - 60.0 Paraguay . 65.0 - 65.0 Peru . 150.0 - 150.0 Russia 300.0 - 300.0 Senegal. - 3.7 3.7h Ta nzania. - 170 2 170.2 UFanda. .................- 75.0 75.0 Venezuela ................................. 100.0 - 100.0 Viet Nam ................................. - 158.5 158.5 Total ................................ 2.162-5 1.130.8 3 293.3 Urban Development Albania .................. ....... ... - 15.0 15.0 Armenia ......- 28.0 2.0 Bolivia .--------------------- 42.0 4'.0 Brazil .------------150.0 - 150.0 Chad ....... ............ .... - 174 17.4 Chile ...... 10.0 - 10.0 Croatia .......1..20 ........... 128.0 Gambia. The ....... .- 11.0 11.0 Ghana ..................................- 385 38.5 India ..... ............................ 246.0 246.0 Indonesia. ............. 174.0 - 174.0 Indonesia ....... 175.0 - 175.0 Madagascar ............................... - 18 3 183 Mexico .2.................................. 00.0 - 200.0 Togo .----------------------------- 26.2 26.2 Total ... 837.0 442.4 1279.4 Water Supply and Sewerage Albania ....... ..... - 11.6 11.6 Algeria .................................. 110.0 - 110.0 Bcnin .................................. - 9.8 9.8 Brazil ... .............................. 154.0 - 154.0 Bulpria .................. 98.0 - 98.0 Ghana . ........................ - "2.0 22.0 Guyana ................................... - 17.5 17.5 Mexico ................................ 350.0 - 350.0 Morocco .----------------------------------160.0 - 160.0 Uganda ...i........... ............... - 42.3 423 Total .. .........8..... 872.0 103.2 975.2 Grand total . ............................. 14.243.9 6..59.1 20.36.0 -Zero. NOTE: For additional details. sce Appendixes 6 and 7. a. Many projects includc activity in more than one sector or subsector. b. Supplementarv financing to a previous loan. not counted as a separate operation. 154--''- - Section Six Other World Bank Group Services and Activities Operations Evalnala;n ments. Staff of borrower agencies contnrbute to these reports. The reports allow the Bank's Operations evaluation in the Bank provides a staff to discern and internalize the lessons of systematic, comprehensive, and independent experience specific to the country and sector in assessment of Bank operations and activities. which they work. The OED reviews atl com- Its principal goals are to account for the out- pletion reports to assess their quality, record come of Bank-supported projects and pro- data, and facilitate the transfer of experience to grams and to use the lessons from that new operations. The reports are sent to the- experience to improve the design and conduct board with an evaluative note from the director of future operations. - ' general. The director general, operations evaluation, Performance audils validate and augment has overall responsibility for evaluation. He re- the information provided in completion reports ports directly to the Bank's executive board, and examine topics of special interest so as to with an administrative link to the president, provide inputs for the OED's evaluation- and is supported by the Operations Evaluation studies program. The OED structures its audit Department (OED). The constitutional inde- work program (with regard to choice of pendence of evaluation in the Bank encourages projects, topics to be analyzed, and analytical evaluation staff to report candidly and allows approaches to be used) to provide inputs for them access to all relevant information and to comparathe studies, as well as to meet require- select any topic for analysis.' ments for accountability. The Joint Audit Committee of the executive In fiscal 1994 the OED audited 80 percent of board oversees the work of the OED. In fiscal adjustmnct lending operations and at least 40 1994 the findings and recommendations of the percent of the Bank's investment operations. committee were reviewed by the ful board, as The OED reviewed 266 completion reports in were the fiscal 1993 annual report of the direc- fiscal 1994 and audited 122 of them. of which tor general, the annual review of evaluation re- ninety-nine were for investment projects and sults for 1992, and the evaluation work twenty-three for adjustment operations. The program for fiscal 1995. cumulative total of Bank operations subjected Evaluation work program. The year's work to e-post evaluation reached 3,590 at the end in evaluation saw the realization of initiatives of the fiscal year. taken in response to the recommendations, In its impact evaluation work, the OED, as- made in 1993, of the Task Force on Portfolio sisted by agencies in borrowercountries, takes Management The task force recommended a second look at projects five to eight years that the Bank strengthen its independent eval- after the close of disbursements. These reports uation work-and the application of evaluation focus on evaluating project impact, including results to the Bank's current operations and intended and unintended effects. They are a policy development-as part of efforts to im- powerful tool for assessing social and environ- prove the performance and developmental im- mental impacts and economic worth, and offer pact of the Bank's lending operations. valuable insights into what makes development The Bank's evaluation work program in- sustainable. In fiscal 1994 seven impact evalu- cludes completion reports by operational staff; ations were issued on projects in agricul- performance audit reports and impact evalua- ture, treecrops, transmigration, and petro- tion reports on individual operations by the chemicals. OED: and evaluation studies by the OED, in- Evaluation studies are designed to examine cluding country and sector lending studies and particular programs, policies, or issues in a reviews of Bank policies and processes. context broader than individual lending opera- Completion reports are prepared by the tions. The OED designs its studies program to Bank's operational staff on all lending opera- investigate issues revealed by its audit work and dons at the time the Bank completes disburse- to respond to current concerns of the Bank's Operations Evoluation 155 board, management, and staff. In fiscal 1994, * The introduction of a "policy ledger," re- the OED sent eleven studies to the board. cording the responses of Bank management to Country-assistance revievs, introduced in the recommendations of OED studies, for ref- fiscal 1994, assess the suitability of the Bank's erence by Bank staff. assistance strategy in particular countries and In fiscal 1994 OED published Human Re- the effectiveness of the instruments chosen. A source Development in Sub-Saharan Africa; review of Bank-Mexico relations was com- Evaluration Resultsfor 1992, including analyses pleted and work began on country-assistance of the Bank's assistance in agriculture and in reviews for Argentina, the Caribbean states, institutional development; and a booklet, As- and Ghana. These reviews are geared to as- sessing Development Effectiveness: Evalua- sessments of lending and nonlending services, tion in the World Bank and International and they offer lessons and recommendations Finance Corporation. With the United Nations for the Bank's regional staff to feed into Development Progranme and the United Na- country-portfolio performance reviews and the tions Environment Programme, it published design of country-assistance strategies. The Global Environment Facility: Independent Process reviews examine how well the Bank Evaluation of dtie Pilot Phase- applies its policies and assess the efficiency Recognizing the-need to take a more active and effectiveness of business practices in role in disseminating lessons of experience to reaching their intended development goals. In practitioners outside the Bank, the OED ex- fiscal 1994 the OED issued a study of monitor- panded the distribution of its 'Prtcis" series and ing and evaluation in Bank-supported projects. began a new series, 'Lessons & Practices." Sector reviews feed into the Bank's reviews Twenty OED 'Pr6is" were published. This of its sector-lending policies. Often these stud- series highlights findings and recommendations ies compare expenence across countries; Gth- from evaluation studies and audits; it is issued ers are in-depth reviews of particular sectors in in English, French, and Spanish- individual countries. Sector studies issued- in Three issues of "Lessons & Practices" were fiscal 1994 covered urban development, agri- published, covering railways, area develop- cultural extension, telecommunications, rural ment, and adjustment lending. This series syn- electrification in Asia, transport corridors in thesizes lessons and recommendations arising Africa, transmigration in Indonesia, gender is- from the Bank's development experience. sues in the Bank's lending, and industrial re- The OED presented the results of its audits orientation in East Africa. Topics of ongoing and studies at seminars within and outside the studies include the social impact of adjustment Bank, including some organized by borrower programs, irrigation, experience in lending for countries. education, industrial restructuring, electric Support for evaluation in borrower coun- power in Africa, and the Bank's assistance for tries. A growing number of the Bank's bor- public sector managemenL rowing members have asked for help in Dissemination and feedback. For some establishing or strengthening evaluation agen- years the Bank's operational guidelines have ces. Changing views on the rolc of the state, required staff to seek out evaluation findings together with increasing scarcity of resources, and apply them in new operations. To reinforce are focusing attention on the effectiveness, ef- the actions the Bank is taking to strengthen ficiency, and accountability of public institu- portfolio management and the quality of new tions as well as of public policies and programs- operations, the OED cotlaborated in fiscal 1994 OED support begins after a country makes a with the Bank's central vice presidencies on commitment to develop the evaluation func- the design of better methods for appraising tion- During fiscal 1994 the OED attended to projects and rating their progress. These efforts requests for advice on evaluation capacity de- included: velopment from Argentina, Brazil, China, Co- * The introduction of selective dissemina- lombia, Indonesia, and Sri Lanka. Activities tion of lessons learned in connection with pro- included designing diagnostic studies on eval- posats for new lending operations. uation capacity; organizing training and work- * Evaluation by the OED. of the processes shops; organizing the participation of country the Bank uses to review the progress of the staff in OED's evaluation missions; and pro- portfolio under implementation. The OED rec- moting borrower participation in the Bank's ommended a revision of the rating system that evaluation processes. the Bank uses for gauging the performance of In response to a recommendation of the port- projects in progress (see Box 4-4 on page 77); it folio management task force, another task is now collaborating with the Operations Policy force made recommendations to the Bank's Department to produce more reliable indica- board of executive directors and management tors of projects' expected development impact- on future policy, for assisting borrower coun- 156 Other World Bank Group Services and ActMe- tries to develop evaluation capacity in the pub- the three principal computing environments in lic sector. the Bank. The LAD also undertook computer- Other activities. OED participated as an ob- application reviews and system-development server in meetings of the OECDIs DAC (De- audits focusing on the efficiency, effective- velopment Assistance Committee) Expert ness, and control of critical applications. In Group. Evaluation staff participated in training order to position itself for an expanded pro- activities and attended workshops and semi- gram of audits in this increasingly important nars with evaluators from other international information-resource management area, the organizations and donor countries. They con- LAD added a significant contingent of staffwith tinued to participate as '"resource persons" in relevant experience. seminars of the Economic Development ustid- In order to satisfy the professional standards tute. of intemnal auditing, an external Quality Assur- Internal Auditing ance Review of the department's policies and Internal Auditillg procedures was also commissioned during the The Internal Auditing Department ([AD) past fiscal year. acts as an independent appraiser that reviews and evaluates Bank operations and activities It Economic Development Institute is headed by an auditor general who reports In fiscal 1994. a five-year strategic plan for functionally to the president of the Bank and, the Economic Development Institute (EDI), since December 1991, administratively to the designed to respond to the needs, challenges, vice president and controller. - and possibilities of the times. was developed. A In response to requests from Bank manage- key component of the plan, the mission state- ment during the year, the LAD conducted a ment, stresses the institute's commiitment to in- number of special reviews, including those of vesting in people and ideas as the most the $30 million technical assistance program to powerful means of development-a concept the Union of Soviet Socialist Republics (estab- that distinguishes EDrs role from that of the lished in August 1991), the Africa Capacity operational arm of the World Bank, which in- Building Facility, the main complex rehabilita- vests much of its resources in physical infra- tion project, and a number of field offices. structure. At the same time, however, the plan These reviews were in addition to the regular is committed to undertake activities that center work progpam, which, while coveting all as- on the Bank's objectives of reducing poverty pects of the Bank's administration, continued and promoting sustainable and equitable devel- to emphasize the Bank's operations and focus opment. on traditional topics such as the procurement Training. Duringthe past year. the EDI con- of goods, works, and services; the disburse- ducted 140 training activities (see Table 6-1). A ment process; and evaluation of procedures notable expansion in activities took place in the used to ensure proper accountability of bor- Europe and Central Asia region, where some rowers during project implementation - fifty activities were carried out, an increase of Staff from IAD also provided technical as- seven over the previous year. Despite the high sisance as part of an implementation mission demand for EDI's assistance in that region. the to Russia by carrying out an evaluation of de- institute nevertheless also increased the size velopments in auditing and locally established of its program in Africa. The training program audit firms. in Africa included an effort to increase the ef- A Bankwide review of time-recording sys- fectiveness of educational reforms through a tems currently in use was completed, and new, seminar that brought together twenty-three comprehensive audits were undertaken on loan education experts from The Gambia, Malawi. processing in the East Asia and Pacific and Af- rica regions. A Bankwide review of internal controls was also initiated. The department's Table 6-1. Regional Distnbution of EDI work program of regular audits of the Bank's Training Programs in Fiscal Year 1994- financial and accounting systerns and proce- Activities dures was closely coordinated with reviewsun dertaken by the Bank's external auditors to a 41 avoid duplication of effort and maximize the Asia 22 audit coverage. - - -- Europe and Central Asia 50 The Bank relies on information technology Lati America and the Caibbean 12 to support its business functions. In recogni- Middle East and North Africa 11- don of this reliance, the department conducted Global-: 4 a senes of technical audits addressing manage- Total 140 ment, security, and control issues pertaining to Economic Develpmt Instiute 157 Nigeria, Tanzania, and Zambia with Bank staff gram of the program, which supports students responsible for education projects in those at universities of their choice worldwide, countries. The seminar was felt to have been awarded ninety-four scholarships in fiscal highly successful in creating a forum for the 1994. open exchange of ideas between the Bank and Changes were made in the Robert S. McNa- its borrowers, thereby helping to reshape both mara Fellowships Program that, beginning in the governments' perspectives as well as the fiscal 1995, would enable it to become a pro- Bank's lending operations in those countries. gram of developing country research, with Although the total number of activities con-' smaller fellowships and larger numbers of fel- ducted remained about the same as in the pre- lows. Through fiscal 1994, research had to be vious year, the number of participants trained conducted outside a fellow's home country. increased from 4,469 to 4,900. Initiatives undertaken. In adjusting to The increase in the number of participants changes in its environment, the EDI introduced reflects a change in the -mix7' of activities: several initiatives to its core program: fewer small seminars for senior officials and * A program for the Occupied Territories more courses in economic and sector manage- -was launched. The program. which began in ment and ''training of trainers"-courses that June 1994, emphasizes efficient management of usually have a larger number of participants. external assistance through training in topics Program in threformer Soviet Union (FSU). such as project assessment, project manage- In response to the growing demand for assis- ment and procurement, restructuring of the tance in the republics of the FSU, the EDI regulatory framework in the housing sector, worked closely with local universities-the and development of policies that support eco- Tashkent State University of Economics, the nomic development. Kazakh State Academy of Management, and e In response to the 1993 report of the Task the Economics State University of Kiev, for Force on Portfolio Management, the EDI be- example-in designing seminars, recruiting gan a program in portfolio management that is trainers, and.preparing teaching materials in lo- being supported by a senres of training manuals cal languages. The enterprise-management and case studies that, in particular, deals with program in the FSU is a good example of a the economic analysis of projects, procure- training-of-trainers program in which EDI first ment. and project management. Initial imple- trains local trainers and then uses the local mentation of this work began in fiscal 1994 in trainers to train practitioners. During fiscal dLe FSU; the program is slated to be extended 1994, 2,200 participants were directly or indi- into China, Viet Nam, and the Occupied Ter- rectly trained in this highly successful program. ritories- Training materials and publications. EDI * The Errs program on environmentally prepares most of its own training materials in sustainable development was expanded to in- the form of manuals, books, case studies, and clude training to improve policies and practices collections of analytical papers and distnbutes in the involuntary resettlement of persons dis- them through its courses and seminars and. on placed by the effects of development projects. request. to partner training institutions and se- This expanded program was carried out during nior officials and policymankers worldwide. The the year in China, India, and Turkey. In addi- content of these materials often derives from tion, a new program in environmental analysis World Bank experience, including country and and valuation to help govemments deal with sector studies, research reports, case studies of industrial poliution was designed in collabora- Bank projects, and Operations Evaluation De- tion with the Foundation for Advanced Studier partment findings. In fiscal 1994. EDI pub- in International Development (Tokyo). This lished eighty titles for use in its courses and program, funded by the government of Japan, seminars. includes techniques for assessing, prioritizing, While most of EDI's materials are published and managing envirommental problems in the in Englsh. a certain number are issued in other transitional economies of Central and Eastern languages, as well In addition to five Russian Europe. titles published during the year. materials were * Many of the EDrs teaching materials now also translated into French, Spanish, Chinese. include computer-based components and mul- and Arabic- timedia techniques. In addition to publishing a Scholarshkip and felowship programs. The large number of its training materials on CD- Worid Bank Graduate Scholarship Programu. ROM, the EDI has begun to use teleconferenc- funded bythegovernmentoflapan,sawaclass ing to bring together developing country of twenty-five students graduate with a mas- officials and Bank staff. For example. as part of ter's degree in Economic Policy Management a seminar held in Cameroon in early 1994,jour- from Columbia University. In a11. the core pro- nalists from French-speaking Africa were 158 Other Wcdd Bank Group Servces and Actities briefed by senior managers from the World icy and poverty reduction. One ongoing project Bank on important concepts that underlie eco- is studying the effect of price liberalization on nomic refonn. The United States Information the rural poor in China; another is exploring Agency's Worldnet not only linked thejournal- how macroeconomic and sectoral policies af- ists (in Yaound6) with Bank officials (in Wash- fected consumption in India during 1951-90. ington) but also broadcast the teleconference Analysis of a panel data set constructed from throughout Africa. rural household surveys in China is expected to Joint Vienna Institute. The Joint Vienna lead to better understanding of the ways fami- Institute, which was established in collabora- lies rise out of poverty in rural China, and re- tion with four other agencies-the In- search on improvingthe productivityof women ternational Monetary Fund, the Bank for will examine-the sustainability of three credit International Settlements, the European Bank. programs for the rural poor in Bangladesh. for Reconstruction and Development, and the Analysis of issues relating to economic Organisation for Economic Co-operation and growth and poverty reduction has been con- Development-continues to conduct and host founded by the scarcity of data and reliable courses in market economics for officials from measures that are comparable across coun- transitional economies. In its first year- tries. A cross-country data base for 1981-91, September 1992 through August 1993-the in- using uniform poverty measures and purchas- stitute organized forty-four seminars, totaling ing power parities, presents a disturbing pic- 108 training weeks, and involving more than ture: Nearly one out of three people in the 1,150 officials and managers from about thirty world lives in poverty, and the number of poor economies in transition. In fiscal 1994, the in- has been growing commensurate with in- stitute, which had been functioning under in- creases in the population. - - terim and informal arrangements, was Research on economic success and concom- established as an international organization up- itant reduction in poverty in several Asian der a board of directors composed of represen- countries has prominently cited education as a tatives of the sponsoring organizations, critical factor in that success. A study con- FiDrs Moscow office. The great demand for ducted during fiscal 1994 analyzed the role of courses in the Europe and Central Asia region secondary education in raising labor productiv- led the EDI to establish its first overseas office, ity and in facilitating economic transition from in Moscow. The office is currently staffed by agriculture toe more capital-intensive services fifteen locally recruited trainers who coordi- in newly industrializing Asian developing econ- nate and conduct training activities in the FSU omies. Further study is now under way on (including those related to the Joint Vienna ways to improve educational systems in devel- Institute) in collaboration with EDI's oping countries. A major interagency project Washington-based.staff. concluded during the year found that govern- ment subsidies for basic education yield impor- Research at the World Bank tant benefits and that public expenditures on The Bank's contnbution to a more compre- higher education in poorer countries un- hensive understanding of the processes of dermine equity and efficiency. Evidence on growth anddevelopmentreCliestoagreatextent educational achievement and the cost- on the research it conducts. That research is effectiveness of schooling inputs, analyzed in a intended to provide information to enhance fiscal 1994 study, has yielded recommenda- policy maldng of government officials who face tions for actions to improve educational out- rapidly changing domestic and global circum- comes- When families are willing to invest in stances. It also answers questions that arise in the health and education of their members, the designing and adapting the Bank's lending pro- quality and availability of locat social services gram to the needs of its members. critically influence the outcomes of their in- The major objectives of the Bank's current vestments; Bank research completed during programs arc poverty reduction and human re- the year indicates the relative payoffs to differ- sources development, enhancement of the role ent service programs and strategies across of women in development, private sector de- many countries and years. velopment, environmentally sustainable devel- An interagency study of contraceptive use opment, and economic management. Bank suggests that policies to limit population research is focused on those areas where crit- growth must be tailored to a country's socio- ical policy questions remain unanswered. economic development. Three countries in * Poverty reduction and human resources de- different stages of the fertility transition dem- velopment. Poverty and human resources is- onstrated wide variations in response to differ- sues continue to dominate the Bank's research ent variables such as income, education. and agenda, with a focus on the links between pol- access to contraceptive services. Research at the Woud Bark 159 Improvement of health programs is the ob- sector growth is constrained by high local jective of a study that is measuring the effect of transaction costs. uncompetitive currencies, higher user fees on the use of primary health and government interventions and restrictions services in Indonesia Another is resurveying that raise costs and limit opportunities to take health and education indicators and facilities in advantage of otherwise competitive factor- Morocco to provide the basis for analyzing a prices. In many countries the legacy of past crucial set of issues in the area of government problems is a morbund industrial sector for expenditures on social services. Using an un- which bankruptcy and restructuring are the usual longitudinal data set for Africa, one only answers; a research project developing project is trying to identify the link between recommendations for bankruptcy law is inves- health and labor productivity. tigating wlhat migzht be the most appropriate le- Research on the impact of unions and policy gal and regulatory framework. interventions in the labor market on short-term In other cases, public sector infrastructure adjustment and long-term economic perfor- failures are so pervasive and costs so high that mnance will help to assess the appropriateness it is necessary to commeercialize infrastructure of the Bank's focus on product market reforms services for the private sector to grow. The de- in the 1980s. It will also analyze the extent to terminants of service contracting are being in- which the private sctor in developing coun- vestigated to develop recommendations for tries has been able to circumvent government commercialization of infrastructure. Transport interventions in the labor market during the systems are similarly overburdened and under- pasttwo decades A three-yearstudy examined funded. and a set of performance indicators is critical labor market policies and strategies to being developed to help policymakers focus on minimize the social costs of wage and labor re- prority areas for maintenance, upgrading, and forms by improving the competitive operation investment of labor markets and increasing the efficiency Despite these problems. firms emerge and Of public and private spending on education grow, and research is examining how they do. and training. The goal was to identify "best In Russia. determinants of private sector suc- practices" to improve labor market perfor- cess are being analyzed; the study is also cx- mances that have a bearing on the condition of amining the potential usefulness of business the poor. The results of another labor market service centers to provide information. credit. study, which will be published as a handbook and advice to new entrepreneurs. The difficult on labor market policy, is designed to contnb- process of commercialization and transfer of ute to the policy dialogue between the Bank firms from the public to private sector in Po- and member governments. land has been relatively successful, and Bank Environmentally sustainable development. research has uncovered lessons that other The creation of the Environmentally Sustain- countries. both transitional and developing. able Development vice presidency has central- can learn from that experience. ized resources for analysis of common and For many developing countries, the agricul- global environmental issues. Simultaneously. tural sector is the largest potential source of environmental research has been initiated in growth and development, and research is under different units of the Bank to address local or way on a range of issues in agricultural devel- regional environmental concerns. During fiscal opment. -In the former Soviet Union. land re- 1994 the Bank investigated land use, conserva- fonn and farm restructuring is needed before tion of biodiversity, and development in the fainners will respond to improved incentives. Amazon floodplain; coastal zone management and a Bank project is investipting- constraints in the tropical areas of Latin America; and sus- to. and ways to enhance, that process. Alter- tam:able resettlement in areas of Western Af- native agricultural policies in Poland arc being rica from which people had migrated because analyzed for their implications for other post- of riverblindness infestation and to which they socialist countries. and a broader study is ex- are now returning following the eradication of amining the transition of socialist agriculture in the black fly. Research of global significance Europe and Asia. includes analysis of the relationships among Macroeconomic issutes and economic man- population growth. environmental degrada- agemenl. Adjustment of fiscal and external tion, and economic growth and a preliminary balances, reduction of the role of government investigation into whether lumberwood planta- in production. and relieving constraints on the tions can help recover degraded pastureland private sector have been the focus of economic and whether they can act as havens for the re- reform in Afric' for more than a decade. But habilitation of indigenous species growth continues to be elusive. and the reasons Private sector development. For many de- why are not readily apparent. A study of ad- veloping and transitional economies. private justment in twenty-nine African countries. 160 Other World Bank Group Seivices and Actvimes completed in fiscal 1994. uncovered some an- fiscal 1993, was $1,358.7 million. Late in fiscal swers: budget deficits and inflation remain 1994, the directors approved an administrative high, and overvalued currencies make African budget for fiscal 1995 of $1S420.3 million. an products uncompetitive in international mar- increase of 2A percent in nominal terns (see kets. The study found that those countries Table 6-2). adopting reforms have grown; those only be- The fiscal 1995 budget was designed to en- ginning the reforn process still have a long way able units to implement priority objectives with to go: and those not adopting reforms are ex- increased attention to project quality at entry periencing alarning economic declines. and supervision. Special attention will be given The catalyst for growth in many countries to four key issues. has been expansion of production for export. * Poverty reduction will be reflected in all While the means and benefits of liberalizing components of country-assistance strategies trade policies have been well documented. involving greater staff intensity per operation. drawn-out multilateral negotiations in the Uru- * Portfolio-management activities will re- guay Round of the General Agreement on Tar- ceive further emphasis to improve project iffs and Trade have generated renewed interest implementation so as to enhance the develop- in groupings to promote regional tade. Re- mental impact of Bank operations. search was conducted on regional arrange- * Country dialogue on policy reform will be ments and their advantages and costs relative strengthened. and efforts to develop to international agreements in order to advise investment-lending opportunities increased, developing country officials on the strategies particularly in the newer members and in those that would be of greatest benefit moving out of adjustment lending. Progress in the generation of government * Collaboration with other multilateral and revenues continues to be highly variable across nongovernmental organizations and the private countries, and research on ways to mobilize sector wil be increased to make maximum use resources for public services has been a staple of the capacities of others. of Bank research for years. The focus of public World Bank regular and fixed-term staff on economics research shifted in fiscal 1994. how- board at the end of fiscal year 1994- totaled ever. toward public expenditures and fiscal de- 6.338. of whom 4.145 were higher-level staff centrAliztion. New projects are investigating from 123 nations. The number of staff in- expenditure equalization among provincial and creased 2.3 percent from the previous year local governments, are examining instruments higher-level staff grew by 3.5 percent. Of the for allocating expenditure responsibilities and higher-level staff. 59 percent were from indus- revenues from central to local govermments, trialized countries; the remaining 41 percent and are studying the effects of fiscal decenural- were from developing countries. ization on various measures of performance. At the end of the year, 1.166 higher-level, The Bank's sixth annual conference on de- long-term consultants. (those with contracts velopment economics surveyed five topics: the with a duration of six months or more) were transition in socialist economies; new instita- worling for the Bank, an increase of 27.7 per- tional economics; economic geography-the cent over fiscal year 1993. and 508 regular and dynamics of disparate regional development: fixed-term staff were in special positions. pressures driving international migration; and Women employed as higher-level staff by the labor markets under systemic change. The pre- Bank increased from 28A percent of the total to sentation of eleven papers on these topics was 30.0 percent during fiscal 1994. The Bank re- supplemented by a keynote speech on current cruited 257 new higher-level staff in fiscal 1994, development issues by the Bank's vice presi- of whom 32-7 percent were from developing dent, Development Economics and Chief countriesand 39.3 percentwere women. Forty- Economist. and a roundtable discussion on em- two of the Bank's recruits were selected ployment and development (it was the initial through the Young Professionals Program: forum on the theme of WorldDevelopment Re- thirty were from developing countries, and port 1995). The papers. with discussant com- eighteen were women. As an experiment, the ments, the keynote speech. and a summary of Young Professionals Program hired ten techni- the roundtable discussion. will be published as cal specialists, rather than economists or finan- Proceedings of tire World Bank Anntual Con- cia! specialists. The experiment proved to be a ference On Development &onomics. 1994. success. and the program will be expanded to hire more technical specialists and fewer econ- The Administrative Budget and omists and financial analysts in fiscal 1995. A Bank Administration special skills-mix recruitment strategy was set The Bank's administrative budget for fiscal in motion to hire staff in seven skills areas 1994. as approved by the executive directors in greatly in need in the Bank. One hundred The AdM minlrotln Budget and Bank Admnhuraton 161 Table 6-2. World Bak Budget by ExpenseCategory and Adminisrative Program, 1992-95 (milions of US dollars; fiscal years) Actual Item - :1992 1993 1994 progaM Erpense categery Staff costs 699.0 7712 851.8 878.8 Consulants 892 104.8 -113.7 128.2 Contractual servicesfrepresentaion 373 42.9 663 - 49.6 Operatiolal travel 113.5 . 1220 : 129.8WA Overbead 176.1 209.1 231.6 215.0 Direct contnbutions to special gpants programe 58.6 80.7 102.5 90.5 President's contienCy"b ns. n=m. na - 14.1 Reimbursemnents (100.5) M.3) (107.3) (113J8 Accrual for resettlement on termination na. ns. n n- 23.0 Allocaion for pending benefit initiatives. n.. n.a na 0.6 Total 1,074.0 1,235.6 1t3884 1,4203 Admin&stfatie program¶' Operational 496.3 S82.0 612.2 630.7 Fmancial 87.0 92.4. 98.5 102.1 Development and advisory . 175.6 172.3 216.6 2175 Administrtive support - 106.3 106.0 119.7 116.6 Corporae mnement and legal services 38.4 40.6 45.1- 48.1 Total 903.6 9933 1,092.1 - 1,115.0 Over d /b . - - : 154.0 .193.8 210.3 223.0 -esident's cndgency n.aL na- n.. 14.1 Reimbusements (100.5) (95.3) (107.3) (113.8) Net adminisrative programs . 957.0 1,091.7 1,195.0 1.23833. Special programs - 65J7 88.8 1102 98.4 Boards 40.1 43.1 .46.5 - 3.9 Operations evaluation 11.2 12.0 13.8 . 14.6 Nondiscretionary itam -naD a sna. 14.6 Alloction for pendg benefit initiatives n.a. A 229' 0.6 Total budget .1,074.0 1,235.66 1,388.4 1,420.3' Warm Details may not add to zoals becuse of roding. na. Not applcable. a. Includes Institutional Devlopmcat Fund in fiscal 1993-95. b. Alcations from president's co ngy have been incnded in r apective fr fiSscal 1992-%4 c. Subject to executive board approvaL. dL Fiscal 1992-93 figrs differ fBm those in the fiscal 1993 AnmlRepwr due to a change the methodoloy ofaocat benef to differen propsm e. Ccntrlly maanaged overhead and benefits. L Includes adminia_tie expense and an additonal $13 milion fortthc Consultative Group for Int_aonal Agricultura Resarch in fiscal 1994; the rmining S7 milGon will be paid in fscal 1995- g. tIncle S£7.1 milion undeftnding k the curmcy option of the Staff ReimentPlan (SRP). a net savig of SL. al m under the Retired Staff BenefitPanw, a savings o fS9.7 miion due to SRP portfolio gains,. and a 25.3 milio pro-in for rscttleme on termainaion due to accounting changes. hI Excludes $20 million fr Somalia relief. L Includes S25.3 milionprvisionforresttlonentofwhichS22.9million was ulmaelypaidftomabudget undrarun fscal 1994.V Te rmaining 82.4 mInio is the fiscal 1995 increment. 162 Other World Bank Group Services and AcHties twenty-two staff in those skills areas were respects. Staff indicated that they are generally hired, and the recruitment strategy will be con- satisfied with their work, pay, and benefits, tinued in fiscal year 1995. identify with the institution's goals, and feel Improvement of skills is also being carried that their managers are doing goodjobs; none- out through training that is offered in a wide theless, they feel ambivalent towards the insti- range of new courses-environmental issues, tution itself. Dissatisfaction with career health management. women in development, development, internal communications, and poverty, private sector development, and pub- the personnel function were cited as contnbut- lic sector management-to enhance technical ing causes of ambivalence; stress is also greater and professional skills of staff. In response to now than in 1990. Managers were directed to the recommendations of the Task Force on work with their staff and to take action on local Portfolio Management and the "next steps" issues. action program, an integrated training curricu- Problems encountered by staff (particularly lum on portfolio management and lending op- expatriates or those who must travel fre- erations has been developed. The content quently) in balancing the demands of work and addresses several major themes of portfolio their family obligations frequendy contnbute management and lending operations devedoped to stress. As a result, adjustments to policy and from analyses of reports on portfolio manage- new programs complementing existing benefits ment, business and institutional priorities, and were introduced. They include enhanced pro- staff training needs. visions for emergency and family leave, greater Occupancy of the Phase I building of the flexibility in working hours and schedules, new main complex by Bank staff began in the counselingforfamiy members on seeking em- first quarter of fiscal 1994. Work preparatory to ployment in the Washington area, and assis- the further demorition of buildings started in tance in identifying appropriate child and clder October 1993, demolition was completed in care arrangements It is anticipated that these May 1994, and excavation and construction of measures will improve the Bank's ability to at- the foundations for the Phase 2 building started tact the diversified and highly skilled staff re- in the same month. Completion of the Phase 2 quired to carry out its mission. building is scheduled for late fiscal 1996. FoDlowing a review by the Health Services In. December 1993, a new department, the Department into the possible causes and rem- Headquarters Construction Department, was edies of stress, a stress clinic was established. formed to manage the main complex rebuilding Bank Staff running the program provide indi- project. Itis managed and staffed by personnel vidual stress-management consultations, dis- experienced in construction. tribute educational materials, hold monthly The second Quadrennial Benefits Survey health-promotion talks on-stress, and are cur- was conducted by the Bank and the Incena- rently developing a training course in stress tional Monetary Fund in 1993. The survey re- management vealed that the value of staff benefits (net of Standardized occupational streams were de- staff contnrbutions) was at an intermediate po- veloped to assist staff and managers in achiev- sition in relation to those of 109 comparator ing greater mobility across the institution. The oganizations in the United States, France, and streams, which cover more than 85 percent of Germany. European comparators were found all nonmanagerial jobs, clarify the require- to have more generous leave and subsidy pro- ments for entry and growth within various job visions. The review concluded that the Bank's families and are used for staffing and career overall benefits envelope was reasonably re- counseing, as wel as forjob-grading and pro- lated to those of comparators. motion decisions- On January. 1, 1994 the Bank adopted a Substantial changes, designed to create a worldwide business class travel policy. Since better, more balanced dialogue between super- the Bank moved toward changes in its opera- visors and staff about performance effective- tional travel policy in 1993,-the cost of airfres ness and skill development, were made in the from headquarters has decreased by about 25 Bank's performance-management process for percent The fiscal year also marked the first headquarters-based staff. A key element is the full year of operations of the dual-contractor use of job-family competencies to enhance the arrangements for travl service and food ser- specificity and usefilness ofperformance feed- vices, contracted for through a competitive baclk The competencies are integrated into the bidding process. annual performance rview using streamlined Results of the fifth Attitude Survey, made forms and procedures that focus attention on available in September, showed that despite dialogue rather than on text The outcome is a improvements on some institutional indices, joint staWmanager plan for increasing the staff work group responses deteriorated in several member's effectiveness. Intem-at.onal Rnnce Caporatfon 163 In January 1994 the Personnel and Adminis- spreadsheets and an Electronic Document tration vice presidency was reorganized and Management System that provides new capa- became the Management and Personnel Ser- bilities of electronically capturing, storing, and vices vice presidency. The reorganization was managing information from the desktop. Ac- designed to make the vice presidency, which is complishments in the information-management a service arm to the rest of the Bank, become field include the establishment of a new Field more responsive to the needs of its clients, per- Office Information Services Unit; the develop- form to a higher standard of service, and im- ment of policies, guidelines, and procedures for prove the effectiveness of the Bank's business managing Bank records; and the conversion processes, both within its own areas of respon- from microfiche to optical storage of internal sibility and without, by helping other areas of Bank reports. the Bank improve business processes. A new department-Organization and Business International Fmance Corporation Practices-was created by merging the Orga- The International Fmance Corporation (IFC), nization Planning Group and units of the Infor- a member of the World Bank Group, promotes mation Technology and Facilities Department. private enterprise in its developing member The new departnent will bring the power of countries. It does this by financing sound pri- information technology and systems to the de- vate sector projects, mobilizing debt and equity sign of new work processes and organization financing in the international markets for pri- struclturs. Its primary responsibility is to im- vate companies, and providing technical assis- prove existing business practices, processes, tance and advisory services to businesses and and procedures. At the same time, the facilities governments. units of the Information Technology and Facil- The growth of the IFC's operations in fiscal ities Department were merged with the General 1994 was strong. Financing approved for IFCCs Services Department own account was $2.5 bilion for 231 projects, The management team of the new vice pres- compared with $2.1 billion for 185 projects in idency, in collaboration with its clients, estab- fiscal 1993. It was also a good. year for the fished a set of business objectives and plans for IFC's resource-mobflization activities. The fiscal years 1994 and 1995 that will lead to re- corporation approved $1.8 billion in financing duced costs and improved quality of services, to be mobilized through loan syndications and with particular focus on the Organization and the underwriting ofsecurities issues and invest- Business Practices, Gencral Services, and the meni flunds. Projects approved by the IEC had Personnel Management departments. The total investment costs of $15.8 billion; this plans address the need to support the efforts of means that other investors and lenders wil pro- other vice presidencies to redesign their busi- vide a total of $5.43 for every dollar approved ness processes and service delivery. Two vice by the IEFC. presidencies-the East Asia and Pacific Region The corporation approved projects in sixty- and Development Economics-have launched five countries, compared with fifty-four coun- redesign efforts. One department in each vice tries in fiscal 1993, as well as a number of presidency, with the support of Management projects with a regional or international scope. and Personnel Services, nas undertaken a com- Approvals increased in most regions. IFCs ap- prehensive redesign of its core work processes. provals in Central Asia, the Middle East, and These redesign efforts were initiated because North Africa increased by 42 percent, to $383 many-of the work prmcesses have become too million; in Asia, by 16 percent, to $605 milion; cumbersome and costy and lack client partic- in Latin Amenca and the Caribbean, by 15 per- ipation. The redesign work will be completed cent, to $815 million; and in Europe, by 6 per- in the fall of 1994, with implementation sched- cent, to $443 million. In sub-Saharan Afirica, uled to take place in 1995. Once the redesign the number of projects approved increased work is finished it will be evaluated and then from forty-five to fifty-seven, but the volume of expanded to other departments and regions. financing decreased to $157 million; as more Information technology initatives currently than half of the projects involved small and. being implemented on a Bankwide basis in- medium-sized enterprises. clude centrally managed and supported tech- The IFC was active in many sector, includ- nology service that allows voice, video, ing capital markets, power, telecommunica- graphic, image, text, and numeric data to be tions, agnrbusiness, tourism, manufacturing, oil shared easily throughout the institution and and gas, mining, and petrochemicals, among with external entities. Initiatives at early stages others. Capital markets activities-for exam- of development include a new desktop elec- pie, investments in banks and nonbank finan- tronic mail service that is better integrated with cial institutions and various funds, credit lines standard software such as word processors and for intermediaries, and securities under- 164 Other World Bank Group Seivces and ActIvtes writing-accounted ror 24 percent of the dollar growth rate of 12 percent to 13 percent annu- volume approved. A new product launched by ally in new investment approvals for the fore- the IFC in fiscal 1994, the State Street Bank & seeable future. Trust Company/IFC Emerging Markets Index- During the year the corporation's mem- Common Trust Fund, will invest in twenty- bership increased to 161 countries. The IFC three stock mark-ets covered by the IFC Invest- welcomed five new members-Estonia, Kaza- able Composite Index, a series launched in khstan, Latvia, Ukraine, and Uzbekistan. fiscal 1993. Because of the growth of its operations and The IFC approved a number of projects in staff during the past decade, the corporation sectors such as telecommunications, power, has outgrown its present office space, which is transport, and water supply, and made a $50 leased fom the World Bank. After careful con- million investment in a global fund that will sideradion, IFC management decided to buy a provide mezzanine financing for power site near World Bank headquarters in down- projects throughout the developing world, as town Washington, D.C. and construct new well as a $1 million investment in the fund headquarters. The site was purchased in 1992, management company. and excavation began in fiscal 1994. The IFC New commitments signed during the year expects to move into its new headquarters in reached $1.8 billion, up from $1.4 billion in fis- fiscal 1997. cal 1993. Disbursements were also up; they Details of the IEC's fiscal year can be found reached $1.5 billion, compared with $1.2 billion in its Annual Report, published separately. last year. The IFC's disbursed portfolio grew by 14 percent during the fiscal year, to reach Multilateral Investment Guarantee S6.2 billion at June 30, 1994. Agency The Foreign Investment Advisory Service The Multilateral Investment Guarantee (IAS), which is supervised by a committee Agency (MIGA) has as its mandate to increase consisting ofrepresentatives of the EFC, MIGA the flow of productive investments to develop- (until July 1, 1994), and the Bank, provides ad- ing member countries by providing services vice on matters related to foreign direct invest- that are client-oriented, cost-efficient, and menL In fiscal 1994, FIAS completed twenty- complementary to those of other relevant pub- eight advisory assignments in twenty-five lic and private activities. It achieves this by countries. (a) guaranteeing (or insuring) investments in The IFC's financial performance was strong developing countries made by private investors during the year, with record net income of $258 against specific noncommercial risks; and (b) million, a return of 8.8 percent on IFC's net advising and assisting these countries' efforts worth, which reached S3.2 billion at June 30, to amtact and retain such investment. 1994. The IFC borrowed S1.5 billion in the in- - During fiscal 1994, MIGA's board of direc- ternational markets and $180 million from the tors reviewed and approved changes in the iBRD and issued bonds in six currencies, in- agency's operational regulations; reviewed the eluding its first in the drachma market The agency's operations during its first five yearn of IFC's Largest borrowing to date was a Eurodol- activities; agreed to sever the relationship with lar 500 million issue made in fiscal 1994. the Bank Group's Foreign Investment Advi- In fiscal 1994 the IFCs board approved a sory Services (FIAS) as of July 1, 1994 so as to revision of the corporation's leverage and conserve the agency's resources and build up capital-adequacy policies. Under the revised reserves; approved an increase in the risk-to- policies, the corporation would maintain at all asset ratio to allow for further growth in the tines a level of capital (including paid-in capi- guarantees program; and concurred with the tal, retained earnings, and general loss re- president's decision on thirty-six insurance serves) equal to at least 30 percent of risk- projects conveyed to it. weighted assets and would borrow no more The number of countries paying their capital than four times the amount of its net wordt (the subscription in full and becoming members of total of subscribed capital and retained earn- the agency increased from 107 to 121. ings). At June 30, 1994, IFC's capital adequacy Guarantee program. In fiscal 1994, MIGA's stood at 43 percent, well above the policy min- guarantee program exceeded fiscal 1993 out- imum of 30 percent, while IFC's leverage stood puts in nearly every respect. Increases took at 117:1, well within the permitted maximum. place in the number of contacts executed (38 Those ratios convey the strong level ofthe cor- as compared with 27), income earned from pre- poration's capital and reserves in relation to miums and commitment fees (S9.9 million as its risk exposures and borrowings and should opposed to $5.8 mfllioni, and commitments of permit the IFC, provided that profitability re- potential coverage ($140 million in contrast mains satisfactory, to maintain its current with $105 million). -eIrnaemIonal Centre for Setlement of Investment DIsputes 165 The thirty-eight contracts issued in fiscal MIGA will provide the secretariat for the net-. 1994 involved an associated total direct invest- work, which will primarily enable members to ment of some $1.3 billion and created 7,800 meet. and exchange information and experi-- jobs directly in fourteen host countries-a five- ences. fold increase in job creation over the previous In compliance with its mandate, MIGA, di- fiscal year. In fiscal 1994, investments were as- rectly or with FIAS, provided advice to a num- sisted in Argentina, Brazil, Bulgaria, ber of member countries on their foreign Cameroon, Chile, China, the Czech Republic, investment legislation. MIGA also actively Hungary, Kazakhstan, Pakistan, Peru, Trin- promoted the conclusion of bilateral invest- idad and Tobago, Uganda, and Uzbekistan. ment treaties among several members and en- Several milestones in the evolution of couraged the amiable settlement of a number of MIGA's guarantees progmm were reached in investment disputes. fiscal 1994. MIIGA signed its 100th contract of Detaits of MIGA's activities in fiscal 1994 ap- guarantee; total contingent liabilities exceeded pear in the MIGA Annuar Report for fiscal .the $1 billion mark; the 1,500th preliminary ap- 1994, which is published separately. plication for coverage was received; and the agency was formally admitted as a member of International Centre for Settlement of the International Union of Credit and Invest- Investment Disputes ment Insurers (the Berne Union). The International Centre for Settlement of Technical assistance activities. MIGA fur- Investment Disputes (ICSID) is a separate in- nishes a variety of technical assistance services ternational organization established under the to assist efforts to stimulate foreign direct in- Convention on the Settlement of Investment vestment in the developing world and the tran- Disputes between States and Nationals of sitional economies (collectively referred to by Other States (the Convention), which was MIGA as Category Two countries). Through opened for signature in 1965 and entered into the end of fiscal 1994, these services were fur- force the following year. nished both directly and through the FIAS. ICSID seeks tc encourage greater flows of Technical assistance is now focused primarily international investment by providing facilities on investment promotion and information dis- for the conciliation and arbitration of disputes semination on investment opportunities in Cat- between govermnents and foreign investors. In egory Two countries and the related capacity addition, ICSID undertakes advisory, re- building of those countries' investment- search, and publications activities in thearea of promotion agencies. foreign investment law. . During fiscal 1994, and in coUlaboration with During the past fiscal year, ICSID's mem- other agencies, MIGA conducted two major bership continued to grow with the ratification multicountry promotional events and related of the Convention by Peru, the Slovak Repub- activities-the first for the tourism sector of tic, Slovenia, and Zimbabwe. As of June 30. South America and the second for the mining 1994, 113 countries had become members of sector of sub-Saharan Africa. ICSD; an additional seventeen countries had Other promotion activities carried out during signed but not yet ratified the Convention. the year included strategy workshops designed During the same period, two new requests, to help member countries in capacity building one for arbitration and one for conciliation, for marketing, workshops to strengthen inves- were registered, and two awards were ren- tor services and linkages, and assistance in dered. As of June 30, 1994, three cases were launching investment-promotion missions. pending before the centre. Reflecting MIGA's new emphasis to assist ICSID's publications include a semiannual member countries in information dissemination law journal, 'ICSID Review-Foreign Invest- on investment opportunities, work began on ment Law Journal," and multivolume coliec- some major initiatives during fiscal year 1994. tions of Investment Laws of the World and The most important was preparation for the Investment Treaties. Two issues of the law launching of a global investment-promotion journal and four releases of the investment agency to be supported by a planned global laws and treaties coUections were published in electronic information exchange (IPAnet)- The fiscal 1994. IPAnet will link official investment-promotion - Details of ICSID's activities during fiscal agencies, business associations, financial and 1994 appear in its AnnualReport, which is pub- other intermediaries, and ultimately, investors. fished separately. 166 Section Seven World Bank Finances The IBRD currently has 177 members. These development in the IBRD's borrowing coun- members have subscribed about 1.41 million tries. The maintenance of a strong AAA rating shares of the Bank's capital stock valued at or its equivalent from the bond-rating services $170 billion. The subscription price of the is critical to all shareholders, since it reflects IBRD's shares is divided into a paid-in portion the IBRD's outstanding financial strength and (currently 3 percent) and a larger callable por- permits the institution to provide loans at low- tion. The former is payable to the IBRD at the est cost and to ensure continued access to cap- time of subscription; the latter ray be called ital markets. only when required to meet IBR1) obligations The EBRD's AAA rating is underpinned by arising out of its borrowings or loan guaran- three factors: shareholder support for capital tees. The paid-in portion is divided in turn into increases and access to their capital markets, a portion payable in gold or United States dol- the preferred-creditor status granted the IBRD tars and another payable in a members own by its borrowers, and the IBRD's prudent fi- currency. The amount payable in a member's nancial policies that keep risks well contained. own currency is to be maintained in terns of its The EBRD accepts and manages the risk of value against the standard value of the Bank's lending to its developing member countries. capital, which is expressed in United States That risk is assessed and managed at the coun- dollars. try level and in aggregate. At the country level, The IBRD's Articles of Agreement, as ap- the IBRD's lending levels are related explicitly plied, require that the total amount outstanding to country creditworthiness and IBRD expo- of disbursed loans, participations in loans, and sure. Creditworthiness is assessed in relation callable guarantees not exceed the total value to a country's current and expected future abil- of subscribed capital, reserves, and surplus. ity to repay IBTD loans. At the aggregate level, This defines the JBRD's statutory lending limit. the IBRD's oveUll country-portfolio risk is The difference between that limit and the ac- regularly reviewed by Bank staff, manage- tual total of disbursed loans, participations, ment, and the executive directors. The overaU and caBlable guarantees is known as 'head- assessment of aggregate and country risk and room." Under current policy, the adequacy of their expected evolution are important factors the IBRD's capital is reviewed every three in determining annual IBRD lending alloca- years, or more often if necessary. tions and longer-term country-assistance strat- Capital increases are the subject of negotia- egies- They also help determine what levels of tion and agreement among EBRD members. loan-loss provisions and reserves are required. Two indicators are used to determine when and Market risks-currency, interest, and fund- how large a capital increase may be required. ing risk-are kept limited and are shared with One indicator is the amount of available head- borrowers. room and the date by which it can reasonably Currency risk is limited by the EBRD's Arti- be expected to be exhausted. Another is the cles of Agreement. The IBRID does not take "sustainable levrel of lending." This indicator is currency risk on its borrowings; assets are held a useful planning tool since it identifies the in the same currencies to match these liabili- level of lending that can be sustained indefi- ties. In addition, the IBRD's reserves and suir- nitely, under certain assumptions, without an plus are kept in the same currency composition increase in capital. The IBRD's current sus- as its outstanding loans. Interest risk is passed tainable level of lending stands at about $27 bil- on to borrowers thrugh the variable rate loans lion, compared with a commitment level for the IBRD makes. Funding risk (that is. the in- fiscal 1994 of $14.2 billion. ability to gain access to sufficient funds to meet The objective, of the IBRD's financial poli- obligations at a particular time) is managed by cies is to provide the capacity to be an efficient borrowing medium term to long term and by intermediary of long-term funds borrowed carrying liquidity sufficient to meet 45 percent from international capital markets to support of the next three years' cash needs. Loans 167 The lending rate on IBRD loans is based on mark, French francs, and pounds storming, with the IBRD's own cost of borrowings. A spread an interest rate tied to six-month LIBOR in of ifty basis points is added to this cost basis. each loan currency (PIBOR in the case of This spread may be reduced by waivers that French francs). By the end of fiscal 1994, a to- are annually decided by the executive directors tal of $1,715 million had been approved. in- in light of available net income. volving nine loans to as many countries. Of The IBRD's net income is calculated net of that amount, $845 million was approved in expenses, which include loan-loss provisions. fiscal 1994, involving five loans. All of these The IBRD's objective is to optimize, not max- were United States dollar loans. At June 30, imize, net income so that reserves are ade- 1994, disbursements had begun on four quate, while at the same time loan charges are single-currency loans. The IBRD will review kept low. Reserves are maintained to enable the results of the pilot program during fiscal the IBRD to absorb potentially large but low- 1995. probability risks, such as a sizable unexpected Review of currency-pool targets. During fis- increase in loan arrears, without resorting to a cal 1994, the executive directors undertook an call on capital. A portion of net income is al- interim review of the target ratios for the com- located annually in an amount sufficient to position of the currency pool that were estab- maintain the target level of reserves, currently lished in January 1989. The objective of the set at a range of 13 percent to 14 percent of 1989 policy was to achieve better predictabil- loans. ity, balance, and understandability for borrow- ers by targeting the composition of their loan obligations within narrow tolerances. The ex- IBRD Financial Highlights ecutive directors affirmed that it is the inten- Financial highlights of the fiscal year ending tion of the IBRD to maintain at least 90 percent June 30, 1994 included: of the United States dollar equivalent value of * disbursements to countries of$10.4 bilion; the pool in targeted ratios of I United States * borrowing the equivalent of $8-9 billion in doUar t25 yen: 2 deutsche mark equivalent twelve currencies, four after swaps; and (comprised of deutsche mark, Swiss francs, * net income of $1,051 million, well within and/or Netherlands guilders) until at least June the range that satisfies the IBRD's financial ob- 1996. At the end of the year, 97.7 percent of jectives. currency-pool loans were in the targeted cur- In the first quarter of fiscal 1994, net income rencies. earned during fiscal 1993 was allocated as fol- Accumutated provisions for loan losses. lows: The level of loan-loss provisions is based on an * $675 million to the general reserve, which, assessment of the collectibility of loans in non- together with $1,090 million transferred from accrual status, together with an evaluation of surplus to the general reserve, was intended to coliecttbility risks in the remainder of the port- increase the IBRD's reserves-to-loan ratio at folio. For fiscal year 1994, loan-loss provisions the end of fiscal 1994 1o a minimum of 13 per- were maintained at a level equal to 3 percent of cent, excluding amounts allocated for prefind- total loans disbursed and outstanding plus the ing of interest waivers; present valiue of guarantees for an amount * $215 million to the general reserve for pre- equivalent to $3,324 milion at the end of the funding of interest waivers to be granted in fis- fiscal year. cal 1994; * $100 million to the Debt-reduction Facility Loans for DA-only Countries; and Disbursements. Gross disbursements by the * $140 million to IDA. IBRD to -countries during fiscal 1994 were Other funds transferredtfrom surplus during $10,447 miflion, down $2,495 million from fis- the year included $325 million transferred to cal 1993's total of $12,942 million. Net dis- IDA and $50 million (from fiscal 1992 net in- bursements were negative, at -$731 million, come) to establish a trust fund for Gaza. down from $2,331 million in fiiscal 1993. The dcline in net disbursements is the result of Fimancial Policies 1993, the lower level of gross disbursements com- Single-currency loans. During fiscal bined with a high level of prepayments, at the IBRD began a $3 billion, two-year pilot pro- $970 milion, in fiscal 1994. Excluding prepay- gram to offereligible borrowers a choice of cur- ments, net disbursements declined $2,557 mil- rencies as an alternative to the existing lion to $239 million. standard loan product, the targeted currency- Lending rate. Under the IBRD's current pool loan. The IBRD offers single-currency semiannual variable lending-rate system, the loans in United States dollars, yen, deutsche interest rate was 7.43 percent for the first se- 168 World Bank Finances mester and 7.27 percent for the second semes- traded. The attendant portfolio-management ter of fiscal 1994. By comparison, the other activities are fully supported by comprehen- variable lending rate-applicable to loans for sive risk-management and monitoring proce- which invitations to negotiate were sent before dures covering both credit risk and interest- May 18, 1989, and not converned by borrowers rate risk. Trading performaLnce is mcasured to the new system-was 7.42 percent and 7.25 daily against detailed benchmark portfolios. percent for the first and second semesters, re- Areas of continued enhancements in the spectively, of fiscal 1994. The difference be- management of the IBRD'5 liquid assets in- tween the rates is due to differences in cluded the following areas: development allocations of borrowings to lending and/or to of multiple trading approaches; integration of investments and to the weights applied to computer systems across trading, account- currency-specific costs. ing, and control functions; and improvements The single-currency lending rates applicable in performance-measurement and risk- in the second semester of 1994 (based on the monitoring systems. IBRD's cost of six-month LIBOR-based fund- During fiscal 1994, the IBRD's financial re- ing in each loan currency (PIBOR in the case-of turn on its portfolio was 3.53 percenL The fi- French francs)) were 3.66 percent in United nancial return on investments in fiscal 1993 was States dollars, 2.41 percent in yen, 5.91 percent 6.07 percent. The portfolio continues to be in deutsche mark, 6.28 percent in French managed in relation to a benchmark strategy of francs, and 5.72 percent in pounds sterling. one-year duration. The low retums in fiscal Interest waivers. During fiscal 1994, the 1994 reflect the combination of the absolute IBRD waived twenty-five basis points of the low level of short-term interest rates and cap- semester interest rate on loans to all borrowers ital losses due to the increase in rates since the that had made all loan-service payments within middle of the year. thirty days of their due date. (Approximately 83 percent of the IBRD's total volume of out- wings and Liability Management standing loans is currently eligible for the The objectives of the IBRD's borrowing and interest-spread waiver.) This waiver was in ad- liability-management strategy are to ensure the dition to the continuation during the year of a long-term availability of funds to the IBRD for waiver on part of the IBRD's commitment fee lending and liquidity and to minimize the costs on undisbursed balances that resulted in a re- of funds for the IBRD and its borrowers. The duction of that fee from seventy-five to twenty- IBRD seeks to ensure the avaability of funds five basis points. by developing borrowing capacity in markets in Loans in nonaccrual status. At the end of' advance of need and by diversifying its bor- fiscal 1994, five member countries (Iraq, rowings by currency, source, and maturity to Liberia, Sudan, Syria, and Zaire), as well as provide maximum flexibility in funding. It also two successor republics of the former Socialist seeks to strengthen the continuing appeal of its Federal Republic of Yugoslavia (the Federal securities by offering features that are tailored Republic of Yugoslavia (Serbia and Montene- to satisfy investors' asset preferences and by gro) and Bosnia-Herzegovina) were in nonac- positioning its securities advantageously in crual status. Sudan and Zaire were new each capital market (for example, from a entrants to nonaccrual status in fiscal 1994, regulatory-tax and investment-classification while the former Yugoslav Republic of Mace- perspective). donia and Congo cleared all arrears on Febru- Within the framework of the currency com- ary 14, 1994 and on June 29,1994, respectively. position of borrowings required to fund its Moreover, Syria has been making periodic lending products, the IBRD seeks to minimize debt-service payments to the IBRD. the cost of borrowed fiunds by using, among other things, currency swaps to obtain cost Liquid-assets Management savings compared with the cost of direct bor- At the end of fiscal 1994, the IBRD's liquid- rowings in target currencies; structured financ- ity totaled $19 billion, or about 45 percent of ings converted to conventional liabilities using anticipated net cash requirements over the next over-the-counter financial derivatives; the use three fiscal years. At the end of fiscat 1993, li- of short-term and variable rate instruments; quidity amounted to $18.5 billion. The IBRD's and prepayments. market repurchases. and re- primary objective in holding such liquidity is to financings of higher-cost borrowings. ensure flexibility in its borrowings decisions Medium-term and long-term (MLT) funding. should borrowing be adversely affected by ten- During fiscal year 1994, the IBRD raised $89 porary conditions in the capital markets. billion through MLT borrowings in twelve cur- The IBRD's liquid assets are invested exclu- rencies. including $7.8 biRion of fixed rate bor- sively in fixed-income markets and are actively rowings and $1.1 billion of variable rate BorrowAngs and Uobflity Management 169 Tabk 7-1. IBRD Borrowings, Thcai Year 1994 (amounts in millions) US-daUar Type Issue Currency of issue equivalnt Medium- and long- erm public offerings Global 5.875% ten-year bonds, due 2003 DUI 3.000 =1,15.3 4.5% sven-ycar bonds, due 2000 V 225,000 2,1143 5.250% ten-year bonds. due 2003 USS I,250 1,242.5 Eurobond market 5.5% three-year notes, due 1997 SA 100 67.4 6.25% five-year bonds, due 1998 canS .200 151.6 6.25% five-year bonds,due 1998 CanS 150 111.9 Ten-year structured notes, due 2004 DU - 100 57.5 9.45% ten-year notes, due 2003 Lit 300,000 192.7 Five-year floating-rate notes due 1998 Lit 150,000 962. Seven-year structued notes due 2001 V 50,000 481A Eight-year stmctured notes, due 2002 V 2.000.- 19.3 Three-year structurd notes, duc 1996 US$ '100 100.0 Two-year structued notes, due 1996 US$ 100 101.0 Seven-year structured notes. due 2001 Lit 200,000 126.7 Germany Fnie-year strucured notes,. due. 1999 DUM 125 73.7 Greece 1550% thrve-year notes, due 1997. - Dr 15,000 61.4 - Hong Kong 4.608% thre-year bonds, due 1996 KS - 1.000 129.7 Japan Zero-coupoi bonds. due 1999 V -100.000 832.2. Portugal 85% five-year bonds, due 1998 Esc 11,600. 67.4 Spain- r 9.75% five-year bonds, due 1998 Ptas- 10,000 75.0 ninted States. Four-year sructured notes, due 1997 USS - 25- 25.0 Two-year stuctured nots, due 1995 USS 10 .10.0 Two-year structured notes due 1996 USS 10 10.0 Total medium- and long-term public of ferings. 7-962.6 Mediun- and long-tenn placements witk central banks and govemrwnes Giermany 6.15% five-yar note, due 1998 DM 250- . 145.3 5:27% five-yearnote, due 1999 DM: 250 143.1 Interational 4.00% two-year notes due L995 Sw F . 189 132.8 Total medium- and long-term placements wih central banks and govcrmnents 4212 Median- .nd long-term other placements Belgium . 6.85% two-year loan. due 1995-: BF 5,080 148.3 Switzerland 4.25% seven-year notes, due 2000W Sw F - 300; 200.8 4.00% eiht-year notes, due 2002 Sw F 250 1743 Total medium- and long-term other placemncts. 5231- Total nedium- and long-ten borrowings, fiscal 1994 8.907.6 Short-tenn borrowings ou,tsanding. Central bank fadihtfy. USS 2,599 25992 Discount notes USS 560 560.0 Structured financings. US5 131- 131.0 Structured financigs. 2,000 :. 20.2 Short-term ngs outstandficg as of June 30,1994 3,3105 a Medium- and long-term bonrwing amonts based on grss proceeds, exprssed at exchag ates prevailing at the time of launch. b. Maturing wihin on-e year. c. These isues VAwe placed with central banksgovernent. agencies, and intematiom izais. borrowings(seeTable7-1).After$1.1billionof nated in United States dollars. yen, deutsche currency swaps and a notional par volume of mark, and Swiss francs. The average maturity $2.5 billion of interest-rate swaps, all of the of all this finding was 7.4 years, and the after- year's borrowings, except for $193 million swap cost was 5.03 percent (see Table 7-2). raised in United States dollars to fund single- Noteworthy among the transactions in the currency loans and minor residuals in vehicle IBRD's core currencies during the past year currencies, were fixed rate liabilities denomi- was the IBRD's first deutsche mark. global 10 World Bank Rrnances Tablk 7-2. IBD Bormwings, after Swaps, Fia Year .994 (amounts in ;lons of US dollars equivalent) Befoi swaps C After swaps Maturity swaps Maturity Cost Item A-nount 9 (years) (amount) Amount - (ve'ars) (%) Medfum- and long-term borrowings U.S. dollanr 1.4883S 17 7.9 256.4 1,744.9 20 7.9 5.18 Japanese yen 3,447.2 39 6.6 - 3,447.2 39 6.6 4.26 Deutsche mark 2,235.3 25 8.5 811.4 3,046.7 34 8.5 5.91 Swiss francs 508.3 6 6.0 - 508.3 6 6.0 4.02 1228.3 14 5.0 (1.067.9) 160. 2 2 6.88 Total - 8307.6 100 7A 8,907.6 100 7.4 503b Short-term borrowigs ouwrtanding Central bank faciity (U.S. dollUars) 2.5993 79 05 5.36 Discount notes (US. dollars) 560.0 17 0.4 3.60 Stucured financings: U.S.. dollars 131.0 4 0.3 . 3.14 -Japanese yen 202 1 0.7 1.33 Totar as of June 30. 19940 3,3105 100 0.6 . 495 - zero., Normz Details nay not add t totals becma of mending. a. Repmsents bormwi in A_saliandoUs Begian fanA Canadin dollars Grekdduna, Hong Kong dollrs.Italn ire, Portuguese escudos, and Spanish pescas. After-swap fqps mclude a Belgi finc bowig farSI48 mion equiv- ale which mas heded into Netherlands soilders with an eistg currncy swap. b. Excludes the cost of S193 mllion of singkl-currency.loan fding which was held at floatng rates as of Junc 30. 1994. c. Short-tem borroina outstanding on June 30, 1993 totaed 53.789 mIlionL Box 7-L IDA's Nur Replmbbment Paiod (Fscal 1991-3) The three-year period of IDA's ninth replenish- itation imcrased sharply, from 20 percw t of the ment (DA-9)-July 1, 1990 to June 30. 1993- total in IDA4 to 31 pecentL was marked by a difficult internatinal economic- At the time of the agreemnt, reached on De- envonmcnt characteried by.a slowdown in the cember .14, 1989, on a ninth replenishment of growth of world trade, recession in the industri- IDAs resources, donor-country negotiators alizod world, a plunge in real prices for nonoll (IDA deputies) identified three progam areas d-- commodities and a stagnation in flows ofofricial serving of the highest priority during the ninth development assistance. replenishment periodk poverty reduction, support Drmaidc political changes also took place. The for sound macroeconomic and secral policies, end of the Cold War saw new IDA borrowes, and the environmutThe deputiesalso rcquested such as Albania Belarus, and Mongolia, all brin that IDA's eecutierc directors review on an an- ing with them fareaching agendas for transfor- nual basis how well those prionties were being mation of their counties into market conoies. According to the final revicw of IDA7s Movemnrttoward political docracy gave tipe- operations and policies during the IDA-9 period, tus to reform in several counties but distracted a subject of discusson by the executive board in atenton frm reform programs in others. iscal4,substantialprogress was made in each economic impact of the1 991 Gulf War, although- progam area- shorter and less seve than initially feared, called Newandrefinedistrumentsfordieclyreach- for (and subsequently received a response from ing the poor-poverty assessments that analyze the association that could not have been antici- country poverty issues and focus the policy dia- pated. at the reptenishment's outseL : logue on poverty-reduction strategies; poverty- During the three-year period, the association focused actions in adjustment lending; and provided funding to sixty countries. Lending poverty-targeted investment credits-were either commitmcnts totaled SDR13.7 billion, an in- initited during the IDA-9 period: or were in an crease of 20 percent in nominal terms ovcr the early phase of implementation By the end.of the previus three-year peod year penod question,-onnal poverty as African countries received 46 percent of total sessments had been completed for sixteen IDA IDA-9 conimitnents, as did the countries of countries, adjustment operations increasingly South Asia and East Asia together. Adjustment contained measures to mitigate poverty, and 40 lending accounted for about 22 percent of total percent of the association's investment commit- lending, while lending for education, population, -ments dmuing the final two years of the replenish- health, and nutrition; and water supply and san- ment period were targeted direy at the poor.- Capfalt 171 bond for DM3 billion. The IBRD raised $2.1 including $151 million raised through short- billion through structured financing transac- term structured financings. The cost of these tions and vehicle-currency bond issues, includ- borrowings was 4.95 percent compared with ing $61 million through the IBRD's first issue in 3.58 percent at the end of fiscal 1993. Greek drachma. On June 30, 1994. short-term and variable During the past fiscal year, the IBRD called rate funding aggregated $3.5 billion equivalent. an aggregate volume of $1.0 billion of borrow- representing about 3 percent of total outstand- ings for prepayment, including borrowings in ing debt. yen, deutsche mark, European Currency Units, Belgian francs, and Luxembourg francs. Capital In addition, it redeemed S0. billion of United On June 30,1994, the total subscribed capital States dollar and yen borrowings through mar- of the IBRD was $170.0 billion, or 92 percent of ket repurchases. authorized capital of S184 billion. During fiscal At the end of the fiscal year, MLT borrow- year 1994, subscriptions to the S74.8 billion jugs outstanding amounted to S95.6 bilion, or general capital increase (GCI). approved in 97 percent of total debt outstanding. As of June April 1988, continued on schedule. Eighteen 30. 1994. the average maturity of total MLT countries subscnrbed an aggregate S4.4 bilion. debt was 6.0 years, and its average cost, after A total of 555,328 GCI shares ($67 billion, or 84 swaps, was 6.72 percent. percent of total allocations. including addi- Sltorr-term funding. As of June 30, 1994. tional GCI shares allocated to new members short-term borrowings outstanding were $3.3 that joined the IBRD after Apnl 1988) have billion, down $0.5 biRion compared with the been subscnrbed. At the end of fiscal 1994. the level of June 30, 1993. Short-term borrowings permissible increase of net disbursements outstanding at June 30 comprised $2.6 billion (-headroom'") was $79.9 billion, or 42.2 per- from official sources through the IBRD's cen- cent of the IBRD's lending limit tral bank ficility and $0.7 billion from market In 1988, the executive directors agreed to re- borrowings in United States dollars and yen, view the adequacy of the IBRD's capital every More emphasis was placed on key groups and support for cvironmentaly sustainable develop- services. The role of women was given signifi- ment in all countries. National environmental ac- candy. greater recognition,- and gender issues tion planis (NEAPs)-the most iinportant tool for were incorporated more frequently into project developing a country's environmental srategy- desig. About half of al MDA-supported- projects were completed by twenty-two IDA recipient during fiscal 1991-93 duded components that governmentsand,bytheendofthereplenishment addressed the specific needs of women- Greater period, were well under way for almost all of the efforts were also made to encourage the partici- otheractive MlAborrowers. Oncecompleted, the pation of beneficiares in projcct design and im- findings of a NEAP ar factored int country pn- plementation. Support for the provision of basic orties and the plans of IDA and other donors for social services, including basic education, health, projects, sector studies, and the poliky dialogue. and 'nuly plamning, increased substantialy. IIDA's policies in envionmentally sensitive In the second progm area-supportfor sound sectors, such as foresty and agriculture, energy, macroeconomic and sectoral policies-progress and water-resource emnagement, wer revamped was made in most adjusting countries, notwith- to ensure thatthey promote enviromental obec- standing the difficulties involved. Among some tives in IDA's policy dialogue with governments seventeen countries that continued to rceve ad- and in the .design of IDA's lending prgram. In justment assistance in the IDA-9.period, refonns addition, new environmenal-assessment proce- focused .increasingly - rationalizing the public dures were introduced to ensure that the views of sector (by bringng government expenditures in people affected by the impact of projects on the line with available resources and capacities, environment would be taken into account. streamlining the civil service, and restucturing Greater emphasis was also placed on active par- public enterprses) and on enabling the private ticipation at the national and community levels in sector to respond to inproved incentives. Nearly both the preparation and implementation of envi- 120 credits during the IDA-9 period contained roninental plans and programs. components aimed at improving the business cli- ate, while a quarter of al investment tending - supported ifrastrucral development. New n MIDA gMss disbursements durng the period fiscal form programs were supported in an additionaalucrid-notalCd ten countries. -a ten counlrics. - : - - .: ~~S14_261 mittion (of which S6.196 miRion wsdiracd To help protect the environment, the founda- towards the Afnca rqeon and S5.008 mlLion towards tion was laid during IDA-9 for comprehensive the countnies of South Asia). 172 World Bank Finances three years. In the second triennial review The commitment period for IDA-10 began on (June 1994). they agreed with the conclusions July 1, 1993. As of June 30. 1994. available con- of a management report-that the IBRD's cap- tributions to IDA-10 totaled SDR3,700 million. ital is expected to remain adequate to support In addition, the executive directors approved the projected range of iending programs for the advance commitment authority from future re- rest of the decade. They also agreed that the flows amounting to SDR8OO million annually IBRD's current repayment options-first en- for the period fiscal 1994-96 and further annual dorsed in March 1991-continue, unchanged, allocations in fiscal 1994 of SDR190 million for thereby providing borrowing member coun- the "Fifth Dimension" program.' Other re- tries greater flexibility in choosing repayment sources that were made available during the fis- terms that best serve their particular country or cal year included the transfer from the IBRD's project needs. surplus account totaling SDR333 mition and Reserves. On June 30, 1994, reserves additional resources amounting to SDR200 mil- amounted to S14.8 bilion, and the reserves-to- lion as a result of a change in IDA's liquidity loan ratio stood at 13.9 percent. policy. The total available resources for the IDA-1O period during fiscal 1994 amounted, II)A Finances - therefore. to SDR5,223 million. In October 1993, the executive directors dis- Against these resources. the association cussed a report on the use of resources during made IDA-10 commiunents of SDR4,734 mil- the IDA-9 period-fiscal years 1991-93-took- lion. Of this amount, 41 percent went to Africa, note o.Tit, and expressed their satisfaction with 21 percent to East Asia and the Pacific, 29 per- the use of resources during the period (see Box cent to South Asia, 3 percent to Europe and 7-1 for details). Central Asia,- 2 percent to the Middle East and LDA's commitment authority- On December North Africa. and 5 percent to Latin America 17, 1993. the tenth replenishment resotution and the Car'bbean. The fiscal 1994 lending pro- (IDA-10) became effective. As of June 30, gram also reflected the approval of SDR45o 1994. the association had received notifications milion in additional lending to the countries of of participation from Australia. Austria, Brazil, the CFA Zone. .Canada, the Czech Republic, Denmark. Fn- IDA's commirment fee. For each fiscal land, France, Germany, Hungary. Iceland. Ire- year. the level of commitment fee is set by the land, Japan. the Republic of Korea, exccltive directors based on an annual review Luxembourg, Mexico, the Netherlands, New of IDA's financial position. The commitment Zealand, Norway, Poland, Saudi Arabia, fee for fiscal 1995 was set at 0 percent for all South Africa. Sweden. Switzerland, Turkey, IDA credits. IDA's commitment fce was 0 per- the United Kingdom, and the United States- cent from fiscal 1989 through fiscal 1994. During the course of the year, the requests of Spain and Portugal to change their membership status in the association from Part II to Part I members were approved- In addition to tech- ITe "Fih Dmeision'' prm prorides supplementary nical differences between Part I and Part U1 IDA resources to tbose IMA-only countries tiat have out- memberships, Part I members are expected to staQdingdebttotheiBRD.arecurrntintheirdebt-scrvicc make significant contributions to each IDA re- Paynets wo both the IBRD and IDA, and have im place IDA-supported adjstnmnt operations. Such supplcmcn- plenishment. commensurate with their eco- tarY resources. thercefac. takc into account debt impact nomic standing. arising from IBRD interest payments. 173 Financial Statements of the International Bank for Reconstruction and Development Balance Sheet 174 Statement of Income 176 Statement of Changes in Retained Earnings 176 Statenment of Changes In Cumulative Translaton Adjustment 176 Statement of Cash Flows 177 Summary Statement of Loans 178 Summary Statement of Borrowings 181 Statement of Subscriptions to Capital Stck and 'Votng Power 183 Notes to Fimanidal Statements 187 Report of Independent Accountns 194 174 lORD Finanil Statements Balance Sheet June 30. 1994 and June 30, 1993 Expressed In mlfkbns of US. dollar 1994 1993 Assets DUE FROM BANKS Unregrflctecurrendes.S 216 S 68 Umes curmu'es............ -............................S..26. 6 Curncies subject to restrictions-Note A .. 544 511 760 639 INVESTMENTS-Nols C and D Obligatiors of governments and ogtw officil enbTes ............... ............... 9.703 10,407 rme depsits and oher iolgairns of banks and ather clirncal istutions . . 11.622 9.392 21.325 19.799 SECURMES PURCHASED UNDER RESALE AGREEMENS-Mote C ......................... 57 567 NONNEGOTIABLE. NONINTEREST-BEARING DEMAND OBLIGATIONS ON ACCOUNT OF SUBSCRIBED CAPITAL (subject to restrictions-Note A) ....... ....................... 1,5 1.547 AMOUNTS REQUIRED TO MAINTAIN VALUE OF CURRENCY HOLDINGS-Ndle A -Amnounts receivable ......... 1.133 1.210 - Amountecenqble............................................ -1t3,0 Amouns derred ........................................ 542 480 1.675 . 1.690 OTHER RECEIVABLES Net reeves Itom cuarncysaps-NaNes C and D . ............................ 513 775 Reaivables trom investent seurities sold ............ .......................... 23 1,526 Accrued income on loans .2294 2248 Ac=ued mleresta n instm ts106 123 5.302 4.672 LOANS OUTSTANDING (see Summary StatTen of Loans, Notes B and C) *Total loans......... 164.300 158&879 - oalan.... ............................. ....................................... 6J0187 I.ess loans approved but not yet fective ........1................ 11,349 10,964 Les undisbursed babace ol eechivelas l.. 43.660 43.464 1O(91 104,451 OTHER ASSErS Unamrtized issure costs of borrowings ......................... ........ 494 501 Miscelameous ................................................ 1.245 1,135 1.739 1,636 Total asents .142.176 -135,001 Balance Sheet 175 1994 1993 Uabl lites BORROWtNGS (see Sumalry Semet of Bowowings, Notes C and D) S h ort -t er n ......................m..............S. . £3.304 S 3.775 Merfun- and long4er-n 95.615 92,48B 98.919 26.23 SECURMES SOLD UNDER AGREEMENTS TO REPURCHASE AND PAYABLE FOR CASH COLLAERAL R E C EE D ............ ........................................ 1,927 1,772 AMOUNTS REQUIRED TO MAINTAIN VALUE OF CURRENCY HOLDINGS-Note A Amounts pyable ......................................................... - 6 4 Amourts deerred .874 754 8BO 758 OTiER LUABILMIES Accrued dcarges on borrowings ............................................. Z750 Net payables for curq seps-Noaes C and D .................................... 623 1,972 Payables for inrestment secunties purchased .......... ........................ 3.381 1,715 Due tD the ltnational Developent Asociaion and facilities admnitered by the Intrnatiornl Deelopment Association-Note E ..........................,........ 12 1,013 Accounts payable and other liabilities ........................................... 579 485 10.512 7,935 ACCUMULATED PROVISION FOR LOAN LOSSES-4Note B ....... ...................... 3.324 3.150 Total riabil es ..................................................... . 115562 109.878 Equity CAPITAL STOCK (see Stament of Subsciptions to Capital Stock and Voting Power and Note A) Autorized capitl (1,525248 shres-June 30,1994; 1,25,659 share-une 30. 1993) Subscnted capitl (1.40925 shares-June 30.1994;1,372.648 sga-June 30Q1993).. 170,003 165.589 Less uncalled portion of subscriptions ......................... 159,338 155.058 10.665 10.531 PAYMENTS ON ACCOUNT OF PENDING SUBSCRIPTIONS-Note A ................ ...... 87 19 RETAINED EARNINGS (see Statenent of Chagxes in Retined Earnings and Nate E) ........... 14,468 14,032 CUMULATIVE TRANSLATION ADJUSTMENT (see Staement of Chages in Cunmtative Translaion Adjusrnent) ....................................................... 1394 541 TolW equity ....................................................... 26.614 25.123 Total labIlItles and equity .............................................. 142176 S135,001 The Nots o FlancIal Staements are an intraI part of tUe S_m-mnt. 176 IORD Finrncial Statements Statement of Income For dhe fiscal years ended June 30, 1994 and June 30, 1993 Exprssed in mUlons of U.S. dolars 1994 1993 Income Incane from loans-Nole B Interest $7,707 $7.957 Commitment charges.115 124..................................... Income from Invesmn lt-Note C Interest .841 1.091 Securilies Net gains/(losses) Realized (33) 167 Unrealizedn... (127) 19 Income Irom secaiies purchased under resale agrment ......... . ....................... 86 84 Other income .11 g Total income ...........................8.. I . 9.451 Expenses- Borowing exen Interest on bormrwings-Note C ...........................................5- 6.549 6,654 Prepayment Dosts ................................................. 31 108 Amortzation of issuance costs and other borrowing ci ................................. 76 109 -neest an seaufies sold under agrments to repurrlse and payable for cash collaeral reWcved .... 46 81 Adinirdstaive expenses-Notes F. G and H ............. ............................... 731 679 Provision for loan losses-Note B .................................................... -578 Other expenses ............................... 6...................... Total expenses. 8........................................................ 7 . 3 8215 Operating Income 1,161 1.236 Less contributions to spaial progms-Note F ...........................1................ 10 106 Net Income ....................................... S151 S£1130 Statement of Changes in Retained Earnings For the fiscal years ended June 30. 1994 and June 30, 1993 Expressed in mllons of US. dollars 1994 1993 Reained earnings at beginning of the fiscal year .... ....... ............. S14.032 n13.202 Transfer to Intemational Deveopment Assocaion-Nole E .(465) (300) Transfer to Debt Reduction Facility for IDA-Only Countries-Note E .(100) - Tranfer to Trust Fund for Gam-Note E ...(5) Net incm forthe fiscal year ....... .................... 1.051 1,130 Retained earnings at end of the fiscal year .........$ .......-........... ......-.. S14,468 -14.032 Statement of Changes in Cumulative Translation Adjustment For the fiscal years ended June 30, 1994 and June 30, 1993 Expressed In millos of US. dollars 1i94 1993 Cuubthive anslation adjustnent at beginning of the fiscal year ................................ $ 541 5378 Transtion adjustmn for the fiscal year ............................................. 853 163 Cumuative translation adjustment at end d the fis year ................................... .1394 5541 The Noets to FlnancIa Sbtmtels aream Intral Pftt o thus SlatSuIUt. Statement of Cmsh Flows 177 Statement of Cash Flows For the fiscal years ended June 30, 1994 and June 30, 1993 Exessed in millions of U.S. dollars 1994 1993 Cash flows from lending and dvelopment activities Loan disbursemnts ....................................................... 5(10=2) (13.0T7 Loan principal re p a ymfen ts . ......................................1-............ . 10-l86 Loan principal prpayments ................................................... -970 460 Payments to International Development Association (452) 1303) Paymnffs to Debt Reduction Facility for IDA-Only Countries .......................... (23) (29) Net cash provided by (used) in lending and development activities . .................... 343 (.Z763) Cash flows trm finncing activities Medium- and long-teen borrwrings New issues. 8.178 1Z445 Retiements .... ......................... (9,121) (12282 Net cash flows form short-tenrin borrowings . (504) (1.652) Net cash fIows frmn currency s wap s . (176) (357) Net cash flows from capital tansactions ......................................... 199 344 Net cash flows tor financing actvities .. (.424) (1,502) Cash flows Irom operating actvities Net income .......................................................1..... . 1.051 1,130 Adjusments to reconcile net income to net cash provided by operating actiWities Depreciation and amortization ............................................... 197 244 Provision for loan losses ................ - 578 Changes in assets and liabililies Deco in amcued income an loam and investnents .......................... 92 110 Incse in miscellaneous .................a..s.................... :(24) .(210) Decrease in accrued charges on borrowings ........................... (180) (174) Increase in accounts payble and other lIabilities ......... ..................... 05 8 Net cash provided by operating acivities ......................1......2..... 1;211 1.686 Eect of exchange rate changes on uniresticed cash and liquid invmestens ....... ........... 586 188 Net increase (decrease) in unesktred cash and liquid iestments .. -726. (2.391) Unmrsricted cash and liquid irnestmnts at beginning of the fiscal year . . ;18,473 20.864 Unrestricted cash and liquid investments at end of the fiscal year ..... ................... 19,199 S 18,473 Composed of Irwestments .............S - ................. . S2t,325 19.799 Unrestricted currencies ..................................................... 216 68 Net payable for inveslmnt securities purchasedsold ......... ....................... (992) (189) Net payable for securilies purchasedlsld under resale/repurchase agremnts and payable for cash collateral received ...........(...... (1:05)........ ... 13 519.199 S 18.473 Supplemental disclosure Incrase resulting from echange rate flutaions Loans oustanding . ...................................................... S 5.658 S 1.210 Borrowings ......... ........................5.......................... .- 525 Net payable for currency swaps 1......................... ...................: 1,084 992 The MNes to Financial Statennts wean Integral part of these Statements. 178 IBRD FtnKianol Statements Summary Statemers of Loans June 30,1994 Expressed In riNions of U.S. dollars Loans Pefurcl apaved d btal. TOtl but notyft LJ_stuu Loans loans Barrower or guarntr l koans eleciwet en c aunsbi-n auflandhtg Algera .$ 2,931 S 140 $1.140 $ 1,651 1.51 Agertin.. 5.696 509 1.298 3,889 3.56 Anmenia .12 - 11 1 Australib. - Babums, Tle 22 - 4 18 0.02 Bagladesh .60 - - 60 0.05 Barbados .48 8 20 20 0.02 Beanus .172 42 g9 39 0.04 Bele -. 49 - 25 24 0.02 Bolnia .128 - - 128 0.12 Bosnia-Herzagavina/Federal Republic al Yugoslavia5........... 1.673 - 2 1 1,652 1.51 Botsvana .... 128 - 4 124 0.11 Brazl. 11,904 496 4.867 6,541 5.98 Bulgaria.612 148 216 248 0.23 Ca aen8oon.888 - 165 723 0.66 Chile ......................................... 2,491 - 527 1.964 1.80 Ch i n a ......................................... 11,283 2.145 3.829 5.309 4.86 Colombia ..... 3,996 179 1,097 2,720 2.49 Colgo ........ ..... . 143 16 4 123 0.11 Costa Rica. 568 148 79 341 0.31 Coe dilvoir. 1.899 - 124 1,775 1.62 Craa... 245 128 18 99 0.09 Cyprus . 153 - 90 63 0.06 Czch Republic ........................... 649 - 308 341 0.31 Dominican Repubric .......... .................... 368 - 93 275 025 Emuador ... . . . 1.33 35 444 824 0.75 Eypt Arab Republicol .. 2.081 184 454 1,443 1.32 EJSahadoo .369 - 100 269 025 Estonia . 82 50 4 28 0.03 Ethiopia .4 - - 4 Fii .74 - 31 43 0.04 Gabn. 140 30 24 86 0.08 Ghana .76 - - 76 0.07 Gnree ... ; .-....... 1 - - 1 Guatea a.... 319 -- 123 196 0.18 Guyaa .42 - - 42 0.04 Hondua s.504 - 12 492 0.45 Hungary .3,167 - 993 2,174 1.99 IWand 4 - - 4 India ....................... 14325 94 4,109 10.122 9.26 Indonesia ................ 17,334 1,054 3.988 12292 1124 Iran, Islamic Republic f .867 - 672 195 0.18 Iraq . 48 - - 48 0.04 Jama ica .837 48 169 620 0.57 Jordan ..... ............... 812 20 155 637 0.58 Kazakhstan ........... 279 56 101 122 0.11 Ken y a ? -....... 551 - - 551 0.50 Korea. Republic ot ............................ .... 3,247 - B02 2.445 2.24 Knya, Tanzania and Uganda'a.. Lata. .71 - 35 36 .03 Lebanon ................................ . 269 77 151 41 0.04 stho -. 112 - 77 35 0.03 Uberia. 51 - - 151 0.14 LUhuaia.8 8 26 14 48 0.04 Macedonia. tanner Yugoslav Republic a o 105 - 3 102 0.09 Summary Statement of Loans 179 Loansewl approved oltobli TOW butmtWyS Unisbursend Loans loans Borrower or goamnlor loans divelve loansa outsianclng outstnding Madagascar ....................................... 16 $ - s $ 16 0.01 Ma.a w i. 67 - _67 06 maa a l a y s.. 1,501 70 348 1.03 0.99 Miu iau................. 14 - - 14 0.01 Ma ul tiu s. 224 8 61 156 0.14 Mexc ......i co............. 17.2187 1.530 2.716 13.041 11.93 'Modoa.................. a... 89 - 1 0 79 0.07 MoroccDo..................... 5,440 312 1.368 3,760 3.44 Nicaragua................- - d 0.08 Nigeria . ....... 4,630 l 1'256 3.374 3.09 Omarn .....49 - .................... S 6 43 0.04 Pakistan..................... 4.106 230 1.079 2Z797 2.56 anma .6349 - 118 231 021 Papua New Guineet................ 410 11 119 280 0.26 PaMrguay. .. . .343 115 49 179 0.16 Peru.2, 024 184 404 1.436 1.31 Iau'llni ....... ... " ,I',.-,"14.14..0.01 Philippines ......6...1.4....... 61 4T8 1.323 4.910 4.49. Poland.3i593 - 2,716 13291 1.18 Portugal .177 - 48 -129 0.12 Rome..................... 1,381 401 437 543 (3.50 Rutssia ..2.................. 919 1.590 713 616 0.56 Sltts and Nevis ....1 .. 5,440.312 1,36B 3,760 3.4 SNcLueia. .3 - -2 1 SVincetand the Grendines.1 - 1,2 ! ;6- - 3 3 SUN* .49 - - 49 0.05 SePlles. ..9 - .4 5 Sierra Leone .....................119..83 - 3 Slovak Republic3..296 118 178 0.16 Slvenia .255 1 106 149 0.14 SriLanka ..................... 57 .-- 57 0.05 Sudan.6....-66 0.01 Swaziland.9 - 23 0.02 Syrian Arab Republic.418 - - 418 0.38 Tanzania. .128 1 - 128 0.12 Thai land .2................... 078 -315 1,763 1.61 TSnidad and Tbago .........99 - 39 0.05 Tisia ... Z357 115 574 1667 1.53 Turkey.................... 7.797 100 2.270 5.427 4.97 Uganda . 13 - 13 0.01 Ukriane .27 - 26 1 Uruguay .................... 779 67 165 547 0.50 Uzbea. Republi 22 - 21 1 Venezuelao.2741 394 701 1,646 1.51 Zaire8 8.. - - - 88 0.08 Zmbia.. . 232 - - 232 0.21 yianbabwe ........... ..................803 90 155 558 0.51 Subtolal Members............... 163.079 11.329 43,347 108,403 99.19 CabbeanDeopment zanka 17 2 0.2 ITeriona Finance Corpoation .1.159 - 296 B6 0.79 Tot-june 3. 1994..164.300 811.349 843,660 8109.2 100.00 Total-June 30, 1993.8158.879 810.964 843.464 5104,451 Indates amounts lmss tn $0.5 million or 0.005 p15 ( V s 2 u e l a 2,741 394 - 701 1,646 1.5t~~~~~~~~~(andued 180 IBRD Financial Stotements Summary Statement of Loans rcenuec - June 30, 1994 Expressed In mdilons of U.S. dollars Nons .Loans toting S5,196 million (5J996 m1 ll. -June 30 199IS have been approed by the I3RD but the related agreeris hwe a been sied. Loan agmens ttling 56,153'nillion (54,96B million-une30 19931 have be siguned. bulihe loansdo nt becoa ieri e and disbuw ens theridefr do N san until dhe bhamm and guanlorshn iany. s krtin aetons and bnnish tain drarfs to On IWRD. 2. 01 he undisbursd batance. the lEBD hs enled into irncable commnibnens; to disburse SI,El million (51.53t millio-June 30.1993. 3. Tofl loans outstanding as of June 30. 1994 includes 9X9588 million (580.132 millior-June 30. 1993) at variable intesl rates and S;9,703 millioni (S230619 millIon-June 30.1993) at fixed intenest Raes. 4. In some b cs lans lwere nde. wih the garantee o a member, in countries atdi at the In were IWcIuded in ta muser's lterrits but which subsequenfy became Independent and separate mebers d IIIRD. Liabilities lor tese loans ace shn under tIre name d the uioinal nmeber (whose grantee cadinues unatleted). Loans with outstndirg balnces equivalent to SD14 million Ml million.-Jme 30.1993) ate stown under husiha, the ur,antct. bul repront obligatis ol Pap New Ginea 5. See Noles lo inandal Statemenls-Noles A ad i. 6. One loan with an outsandn balace equivalent to S1 millon ($I niKIon une 30. 1993 Is shOn under Cite d'Sirs (Guamrto) but is also parlialy guaranleed by Burlina Fase. T. Includes portions d loans made to corporations ol de loamer last Alican Coonmtny. & Members are jointy and severally abie. 9. t hese loansare trt benefit alfBe Dians, Baeatdos. GmG lQre JanaadLTrinidadad Tobago, and ierntories ot the UntedlKng2m (Aciated Sift eand Dependencies) in bie Caribbean ellionr who are sewmatly liable as guantos to fth ext ot subloans made In tr lenit Summary of Currencies Repayable on Loans Disbursed and Outstanding - 194 99 Currecy 1994 1993 Austian schillings ......... S 189 S 175 L m m francs. S. 35 S 63 Belgian Itancs . 235 220 Malayian driggits ..-:-...41 42 Canadian dollis ...........-164 178 Netherlndsguilders N:.2.701 2808 Danish kroner . 75 71 Norwegian kroner e..- 65 62 Deutsche naL ...... . 26B142 23.412 Portuguese esds .......... 22 21 European cuffency units ....... 17 19 Pounds sterling -.-.', 25 245 Finnushnmaddwa .-. 48 44 SaudiArahian rlas ' 91 91 French fancs ..... ......... . 783 732 South Atrimn rand ........... 41 42 Inian rupees............... 26 Spanish peetas. . 116 116 Irish pounds .......-.-.... -28 24 Swedish krnor ....... . .---72 73 talin ................. 183 185 .....11855 12.235 Japanese yerL .. .. 37,175 35,190 United States doliars . 28,753 28M20I Kuwaiti dinars . 154 151 Other curencies .....22 - 26 Lens outu g dg..... $109291 5104.451 Maturity Structure of Loans Outstanding Perod July 1 1994 thmugh June 30, 1995 .............................................................: S 1, July 1. 1995 through June 30. 1996 .................... .... 11,638 July 1. 1996 thmugh June 30.1997.. ......... :11,893 - Jul 1,19t fmgh Jue 30,199J................... .......... ..... ............................ ..;1Ui July 1. 1997 through June 30. 1995 ...................3.... ........... 1,245 July 1. 1998 through June 30. 1999 .11;245 July 1. 1999 through June 30. 2004 .36,194 July 1, 2004 through June 30, 2009 12................... ' Z947 - July 1. 2009 through June 30, 2014 ........... . . . ............. 233 Toal .5109.291 The Notes b Rinabl Stement are an Ibepl pat of tese Statment Summcxy Statemnent of Borroilngs 181 Summary Statement of Borrowings. June 30, 1994 and June 30, 1993 Expressed In millions of U.S. dollars Medium- and Long-term Borrowings and Swaps tarni- NW mm-mm bmnhinps Sew agwnu'ls Na ltyibloiphns Weiglhd igt aviap Cnnq sgm anmp a RPricia awtdint Cat (%) piSSes (uceiviles [MMa) (.) 199 1993 199t 1994 1993 1994 1994 1993 Ausbjianlats.... 504 5 498 11.15 5(95) 5(5q3 (lIt?) s(1 5lG (5) Aausltan Chip 3~~~~~~25 274 7,1 In3 (58) (&44) 222 206 Odanimba .......c 523 483 7.39 (4111 (434) (175 52 49 CaSm diabs 1.345' 1.719' 9.05 (1I5) 11.5114) (575? IS? 134 Daishi* rnu e ....r. 48 122 10.0 (41) (121) c1lam) I 1 Deasa nk ...... . . 11.111w 9.12$d 705 11I4 10.129 (49). 2fl 22.595 19W? Eumpeoinhljmq wiis211 4 7.25 (1=93 (11131 4225) 158 .311 Ftih url ....... 114 zm 968 (112) (26 PA70 2 .3 French Inc. . .1...42..1' tilT7 924 (7 97 9 564 530 Gu*adrixi ....... . .. .63 - 15.22(2 (1522) 1 - Hoq Kuigdbil...... . . 40 271 7.84 f0) (257) 1rm 4 ltisipiads .. .... .61 - 7.75 (80) I 75 - hia Ike ....... . . sia 3a10' 10.74 Q2490) (1295 (10.7c 16i 12 aNEMM i...... s.p$301 suI 5.4 549 in nw (155 1.855) (r.1*1 3421 3310 Kuaiultdus ...... . . 1AM 99 7865 ---102 99 Luwnbcwglzacs .92 142 826 (5) (84) PA 3)s MSflnS gidn ~. ... . 3187 31154 7.35 559 554 .680 (-1q35 (1271) (270) 1251 2.497 Nm eaZIm ddlk..... ... . 6 175 itt 4148) (174) (1240) - I )Jomegiakme.. .. 35 34 9.55 - 36 .34 Powulupese .m ..... . .. 327 195 10178 (5) (194) (10.3n 3 1 PO.NS daft ...... . . 271l 23' 18u (1.415) (12681) (9.19 1.35 1311- SpI~~~S paths . . .~~~ 1.801 1117 111 - (17 (1.054) (nIl 14 13 Swedi5h kinn ....... . . 118a .219 11.42 -(118) (27l (11.43). - 1 bwbs km........ . . 5.758 592 1.08 4*442 4.680 5.0r 10am 10372 Uni's SlM Wilas . . .. ... 24.71?' 25,01?13 1103 .2164 4.030 U (27 3 '.15) (7ii1F 24-15 MM85 Pkus ndmuudzetl (Swsuns) ~uI........ (24) (47) Taw ..........59525 SI9S aL See Noles to Financial Stalements-Nole C. b. Indtudes mo-mupn4N bIIoIWEgs which hav bemn Tecorded at Mur discouted values The aggregat tame amounts and discxWded yatieS. MmIn bwuowings at June 30.1994 aid une fl1 1993 are: in millions af U.S&-dolIar equkitaents Dscwtdin Cuners 1994: 1993 1994 1993 Canadman dolLars 1....... :145' S 156 $120 5117 Deuscie nwrf .......1n 1tie 319 2m Italianrim ....... 64 64 - 51 . 47 United Stae dollns ....... 84 25w- 572 60B C. Includes incomfe and oms ftraInIqP ratrest asu At June 3D1 1994 and June 30. 1993.3uf D I as to ed into ntremt fal sM apec.'fl with respecto maonlmal pxinc#ial monotms as folows& hi million Currecy remint U.S..doltar equuient Currecy .1994. 19 1994 1993 Cmadlurdallas...........149 149 5 106 5 11? Deutsche nut ...........-14J9 13.5 9.442 7.932 *FiendhItracs............964 98 182 in1 1Iaan rire....... 20000 - -12? - *Japaneseyen....... 12= 97SO0 922 Pounds sledlng...... . ....100 100 ill155 149 Swedish krnor ....... .- ...300 -35 Swiss francs............. 13124 1.124 -841. 742 United States dollars........... I,9 4.2 3.91 4.521 182 IBRD Rnancial Staements Summary Statement of Borrowings confinuscQ June 30, 1994 and June 30, 1993 Expressed In millions of U.S. dollars As dl June30 199 ard June 30 1993. 95 pemw Sl tde aboe notional oriolpal aounis of tese Interest rale swo aeents are Imm lulting ries Into fbl lales d. Indudes te followig variable bitr re boowins at June 30.1994 and June 30.1993. which bough swaps have been lrasonned inl he financial equivalent at fixed rate borrowings In minions Curenc amin LUS.-dhllar equhialnt- Currny 1994 1993 1994 1993 Catudiandollas .100 100 S 72 S 78 Oetsce mnad- ..-.......... . 425 2- 268 117 .irapeancurrmncyunfls 640 640 -774 734 lbiat lir ....... 550P00 20DJ0- 351 129 apanese yi e . ........... 14950 97=1 0 1.494 922 Poundssterling . ................... 25 25 39 37 UniteSlesd las .......... ..fl 1.377. 1.602 137 e. IncLudes $175 minion ($173 minior-_e 3Q 1993) rmwed frm He bntler Subsidy Fud The Inemst Subsidy Fni. ien SMined its resours Irmn volnt contriburions hom menber governmerenv was e isht to ssidie the ines paryt lo die OM0 or losn 1. The weighted aver cost al medm and long-h boroIngs ousnding aiJune 301994, alte djushnli bor sapaii .ws 572prt (6.9 pemit-ne 30,1193M. g. Indudes borrowings d S125 milon or Unitd tas dolbs an! S69 mullion a Autalian dollr equivalenlt hriwch efective ires rate has not yp been tied. These tran tins are allocaed to single sricy [lo Maturity Structure of Medium- and Long-term Borrowings July 1. 1994 though June 30.1995 . ........................................................ S0.674 July 1. 1995 thhmugh June 30, 1996 .......................................................... 9.527 July 1, 1996 through June 30.1997 ................................................... 12,685 July 1 1997 thmugh June 30.1998 ....................-.... 13.225 July 1 1998 thmugh June 30,1999. .......................................................... 72 July 1 1999 thmugh June 30. 2004 .........................................................663 Ju 1, a2O4 through June 30. 2009 ....................-. ....... . 3.182 July 1. 22O thrmugh Jure 30,.2D1 1 .029 --July 1, 2l4through June 30.2019 .............................. ..... . 3,591 July 1, 2019 thmugh June 30. 2024. . 1.4 Thereafter ......................... 335 Short-term Borrowings -ghte -tbidpal uding cos 1%) 1994 1993 -T94 Short-erm Notes (U.S. dollarsr Prncipal outstanding at lam value ....................... . S 691 1,306. Net unamoid d discounts and psrriwis .(8) ( -13) - - Subtotal .. - -..................683 1i23 Short-term Notes (Japanese yenr ...21 ..- 1J5.. Central Bank FacIllty (U.S. dollars) .-2600 2.482 5.3- Total .............................S3.304 3J775 4.94 - Inclues intel rate sup agremets wit rpe to noional prinapa amout of S652 mrillion d tiNted Ss doabs and $21 nllon eqalnt o Japnese ye The Notes to Rnueial Statmennts are an kItga pat of the Stmtmemta. Statement af Subscriptions to Capital Stock and Voting Power 183 Statement of Subscriptions to Capital Stock and Voting Power June 30, 1994 Expressd In amilons of U.S. dollars Subsalipfln Ydng powe Purmtlage Ammmis. Nwuter PewsSa at rOWt puidhin AInOuds subject o of Member Shr fWw amounts (Note A) to Call (NWt A) votes toa Alghaistan.......... 300 0.02 5 36 $ 3.6 $ 33 550 0.04 Albanima........... 830 0.06 100 3.6 97 1.08 0.01 Algeria............ 9,252 0.66 1.115 67.1 1.049 9.50 0.65 Angola.....2.676 0.19 323 17.5 305 2.926 0.20 Antigu and Brbuda292 0.02 35 CA 35 542 0.04 Arentima........... 10.052 an7 1213 103.8 11 10.30 an7 Amunia ........... 1.139 0.08 137 5.9 131 1.38 0.10 Australia .....21.610 1.53 2.607 171A 2.435 21.85D 1.50 Attstia............ 11.063 0.79 1.335. 80.7 1.254 11.313 0.78 Azertbaijan ........... 924 0.07 ill 1.1 104 1.174 0.08 Baluns. Tihe......... 1,071 0.08 129 5.4 124 1.321 0.09 Baran ............ 1.103 0.08 133 5.7 127 1I35 0.09 Baingladesh----------- 4,854 0.34 586 33.9 552 5.104 0.35 Barbados ........... 948 0.07 114 4.5 11i 1,198 0.05 Beim.ar .......s.. 1.865 0-13 225 17.0 208 2.115 0.15 Belgium............ 2- Z06 3A495 215.8 3,281 29.233 2.01 eFelb............ 329 0.02 40 0.6 .39 579 0.94 Benlin......487 0.0 59 2.5 .56 137' 0.95 Bhufan.....479 0.03 58 tO0 57 729 0.05 EBoliv(ia............ 1.002 0.07 121 8L0 113 1.25 0.09 Botswarna........... 615 0.04 74 2.0 72 885 0.06 Bzi.............24.946 1.77 3.009 185.1 2.824 25.196 1.73 Bulgaia ........... 5215 0.37 629 36.5 593 5.465 0.38 BurldnaPawo.......487 0.03 59 2.5 56 737 0.05 BuundL ........... 402 0.0 48 1.8 47 652 0.04 Cambodia........... 214 02.0 26' 2.6 23 464 0.03 Canrooatn........... 857 0.06 103 6.6 97 1.107 0.0 canada ............ 4,795 3.18 5.404 334.9 5.069 45,045 3.10 Cape Verde........... 508 0.04 61 1.2 60 758 0.05 Cenral African Republic ....... 4 0.03 58 2.5 55 734 0.05 Chad ............ 484 0.03 58 2.5 56 734 0.05 Chile............. 6,931 0.49 836 49.6 787 7,181 0.49 China.............44.799 '3.18 5,404 335.0 5.069 45.049 3.10 Colombia ........... 352 0.45 766 45.2 721 6.602 0.45 Comors ........... 282 0.02 34 0.3 34 532 0.04 CDngo....... 520 0.04 63 2.9 60 770 0.05 costa .233 0.02 28 1.9 26 483 0.03 CkeOt dlvre .2........ 516 0.18 304 164 287 2.766 0.19 Croatia ........... 12871 0.09 155 13.6 142 1.537 0.11 Cyprus............ 1.461 0.10 176 6.4 168 1.711 0.12 Czech Republic ...6.308 0.45 761 45.9 715 6,55 0.45 DEnmark............ 10.251 0.73 1.237 74.6 1.162 10.501 0.72 Ojibauti ........... 314 0.02 38 0.7 37 564 0.04 Dominlica........... 283 0.02 .34 0.3 34 533 0.04 Dominrican Republic ....... 1,174 0.08 142 9.8 132 1.424 0.10 Ecuador.2.771 0.20 334 1182 316 3.021 021 EptArab Repubic 'of . 7.108 0.50 857 50.9 80? 7.358 0.51 El Salvador........... 141 0.01 17 1.7 15 391 0.03 184 lIBR) Financial Statements Statement of Subscriptions to Capital Stock and -Voting Power (coMiued. June 30. 1994 Expressed hin miNions of U.S. dollws asubrriplions fladg PoMn Pearfige ~~Anowuls Natty Percntag ot TOMa paidIn Amaurts sbilc of GI Member ~~~~~~~~~star low amouns (NoW A) to call (Note A) wiles tkwa EquatorialGtine ......... 401 0.03 $ 48 S t.6 5 47 651 0.04 Estonia ............. 518 0.04 62 2.8 60 768 0.05 Ethioia............ 978 0.07 118 4.7 113 1,22 0.08 Fiji. ---728 0.05 88 3984 9Th 0.07 Finland. 8.560 0.61 1,033 61.9 971 8.810 0.61 Fenrce.69,397 4.92 8.372 520.4 7.851 69.647 4.79 Gabn ............ 554 0.04 67 3.6 63 604 0.06 Garrbia. The.......... 305 0.02 37 0.7 36 555 0.04 Georgia.. 1.584 0.11 191 9.3 182 1.834 0.13 * ~~~~Germany. 72.399 5.14 8.734 542.9 8,191 72,649 5.00 * 61w.~~Dm-856 (WA 103 1023 93 1.106 0.08 Greee............ 945 0.07 114 11.4 103 1,195 0.08 GIifada.531. 0.04 64 1.4 63 781 0.05 Guatemaa.... 1.123 P0.0 135 9.3 126 1.373 0.09 Guina............ 725 0.05 87 5.0 82 975 0.07 Guinea-Bissau ......... 303 0.02 37 0.6 36 553 0.04 Guyana ..t......... 1058 0.0 128 5.3 122 1.30 0.09 Haifi............. 599 0.04 72 1.7 69 849 0.06 Hondums.---360 0.03 43 1.3 42 610 0.04 Hunga'y.8.0-- B50 0.57 971 511.0 913 8,300 0.57 Icelad ............ 1258 (109 152 6.8 145 11508 0.10 India .............. .795 3.18 5.404 333.7 5.070 45.045 1.10 * ~~~~Indonesia ...... 14.981 1.06 1,807 11023 1.697 15.231 1.05 aran,slamc Repubic..t23.686 1.68 2.85 175.8 2.682 23.936 16 Iraq ......08O 0.20 339 27.1 312 3.058 021 Ireland............ 5.271 0.37 536 37.1 599 5~5211 0.38 sal............ 4.750 0.34 573 33,2 540 5.000 0.34 Italy....44,795. 3118 5.404 334.8 5.069 45.045 1.10 Jamaica.2...- 578 0.18 311 10.8 294 2.828 0.19 Japan.....93.770 6.65 11.312 703.5 10.608 94.020 6.47 Jordan .1.....388.... I 0.10 167 7.8 160 1.638 0.11 Kazalihslarn.......... 1.675 0.12 202 15.0 187 1.925 0.13 Kerpa............. 2.481 0.17 297 15.9 281 Z.711 0.1 9 Kiribati............ 261 0.02 31 0.1 31 511 0.04 Korea, Republic of ........ 9.372 0.87 1.131 67.9 1.063 9.622 0.66 Kuwmait ....13.280 0.94 1l60 97.4 1.5035 13.530 0.9 Kyrgyz Republic .6....... 21 0.04 75 3.9 71 871 0.06 Lao People¶s Democratic Republic. 100 0.01 12 1.2 11 350 0.02 Latvia .77.......... T7 0.06 94 5.6 go 1.027 0.07 Lebarnon ...340 0.02 41 1.1 40 590 0.04- Lesofth............ 372 0.03 45 1.3 44 622 0.04 Liberia............ 463 0.031 56 2.6 53 713 0.05 Libya ............ 7.840 0.56 946 57.0 889 8.090 0.56 tulmfani........... 846 0.06 102 6.3 96 1,096 .0.08 Luxembourg .......... 1.652 0.12 199 9.8 189 1.90 0.13 Macedonia. fomer Yugoslav Republic of.......... 240 0.02 29 2.5 26 490 0.03 Madagascar .......... 1.422 0.10 172 8.1 163 1.672 0.12C Malawi........... 1.094 0.08 132 5.6 126 1.344 0.09 Statement of Ubscriptions to Capitol Stock aind youing Power 185 SubsopipUnS Vtn paw. Peflp hnawjts Number Percenage ci Total paid In knaurts subjec at af Menber own~~~ire low amouts INa A) tn oan (Note A) vates tow ................. 8244 0.5 $ 995 8 59.5 $ 935 8.494 0.5 M aldv di....... es... 469 0.03 57 0.9 55 719. 0.05 M a li 5........... 52 DAIS 79 4.3 74 902 0.06 Malta............. 1.074 0.08 130 5.4 124 .1.324 0.09 Marshall Islands, h l.263.....0.012 32 0.1 32 513 0.04 Mauritaia. 505 0.04 61 2. 58 755 0.05 %trudtlus .......... 1242 0.09 150 6.7 143 1.492 0.10 Mic........... 118.804 1.33 2.268 139.0 2.129 19,054 1.31 Microneia .......... 479 0.0 58 1.0 57 729 0.05 Moldova ..1.......... 8l 0.10 165 7.6 .157 1.618 0.11 Mongolia........... 466 0.03 56 . 3 54 716 0.05 Morocco:........... 2.791 020 33? 26.9 310 3.041 0.21 M.ozambiique...522 0.04 63 3.3 60 772 0.05 Myanina .......... 2.484 0.18 300 16.1 284 Z.734 0.19 Namnibka........... 855 0.06 103 6.4 97 1.105 .0.08 Nepal ............ 958 0.0 117 4.6 112 1,218 0.08 Netielands..35.503 2.52 4283 264.8 4.018 35.753 2.46 New Zjealand.......... 7.236 0.51 873 51.9 821 7.486 0.52 NMwdga............ e0 0.04 73 2.1 71 ass oi06 Niger............. 478 (103 58 2.4 55 728 0.05 Nigeria........... 7.102 0.50 857 72.5 784 7.35 0.51 Normey .....9,982 0.71 't.2134 72.6 1,132 10,232 0.70 Oman .....1.561 0.11 1889a 179 1.811 0.12 Pakistan ........... 9.339 0165 1.127 67.8 1.059 9.58 0.66 Panama......216 0.02 26 2. 23 466 0.03 Papua New Guinea. ....... 726 0.05 B8 5.0 83 976 0.7 Paraguay ........... 690 0.05 83 4.7 19 940 0.06 Peru .2........... 992 021 361 29.1 332 3,242 0.22 Phirippines .......... 6.844 0.49 826 489 777 7.094 0A49 Poland.1.......908... I 0.77 1.316 79.6 1.236 11.158 0.77 Portugal ... 5.460 0.39 659 38.5 620 5.710 0.39 (aWar............ 1.096 0.08 132 9.0 123 1.346 0.09 Roniania ........... 4,011 0.28 484 30.5 453 4.261 0.29 Russia............ 25.140 1.78 3.033 262.7 2.77 252390 1.75 Riwanda ........... 587 0.04 71 as6 si 837 0.05 SLlUtts andNeis ........ 275 0.02 33 0.3 33 525 0.04 SL LCia ........... 552 0.04 67 1.5 65 802 0.05 St Vincent andthe Grernadines .. 278 0.02 34. 0.3 33 -528 0.04 SicoTomt and Prncipe...... 278 0.02 34 0.3 33 528 0.04 Saudi Arabia .......... 44.795 .3.18 5.404 335.0 5.069 45.04 1.10 Senegal............ 1,163 0.08 140- 9.7 131 1.413 0.10 Seychelles........... 263 0.02 32 02 32 513 0.04 SimrrLeone.......... 403- 0.03 49 tO8 47 653 0.04 Singapore.........320 0.02 39 3.9 35 570 0.04 Slovak Republic ......... 1.823 0.13 220 17.9 202 Z.073 0.14 Slavenia...........1261 0.09 152 9.5 143 1.511 0.10 SalomonisWands. 288 0.02 35' 0A 34 538 0.04 Somalia ........... 552 0.04 67 3.3 63 802 0.06 186 1BD Financial Statements Statement of Subscripftons to Capital Stock and Voting Power ( June 30. 1994 Expressed in millons of U.S. dollars S&ubsritons Voting pow Percentge Amounts uwr Petage of TolW paid in Amounts suibe d et MuTt - Shes lotal anmlts (NaMA) tle jl(NoteA' waias toW South Africa .13462 0.96 S 1.624 S 98.8 S 1.525 13.712 0.94 Spain 23.686 1.68 2.857 175.6 2.682 23.936 1.65 Sri Lanka 3,817 0.27 460 26.1 434 4.067 028 Sudan .850 0.06 103 7.2 95 1.100 0.08 Suriame. .412 0.03 50 20. 48 662 0.05 Swaziland .................. 440 0.03 53 2.0 51 690 0.05 Sweden ................ 14974 1.06 1.806 110.2 1.696 15.224 1.05 Switzerland . ................. 26,606 1.89 3.210 197.2 3,012 26856 1.85 Syrian Arab Republic ........... 1;236 0.09 149 105 139 1.486 0.10 Tajikstan ................... 1 060 0.08 128 53 123 1.310 0.09 Tanuiia .................. 727 0.05 88 7.9 80 977 0.0? Thaiand ...... . . 6,349 0.45 766 452 721 6,599 0.45 Togo . 620 0.04 75 3.9 71 570 0.06 Tonqa. ... --m--- 2o7 0.0 33 0Q3 33 527 Q .04 Trinidad and Tobago.1.495 0.11 180 13.4 167 1.745 012 Tunisia ...... . 719 0.05 87 5.7 81 969 0.0? Turkey ...... 7.379 0.52 890 529 837 7.629 0.52 Turkriistan ...... .......... 526 O004 63 29 61 776 0.05 Uganda .................. 617 .04 74 4.4 70 861 0Q06 Ukaine .................. 10,908 Q77 1,316 793 1,237 11.158 - o.n United Amb Eirate ....... .. - 0.17 288 22.6 265 2.635 0.18 United Kngdom ............... 69.397 4.92 8B372 539.5 7.832 69.647 4-79 United Sttes ...... . 24893 17.66 3M.025 1.9402 28.085 249.143 17.14 Uruguay ..1 .....1.... , . 190 14.1 ' 176 1.828 0.13 Uzteluistmn ...... .,,,., 1,399 0.10 169 12.1 157 1.649 0.11 Varn. d6 0x04 71 1.8 69 836 0.06 Venezuela .11.427 0.81 1,4aI 118.5 1.260 11.7 0.0 VietNam. 543 0.04 66 6.6 59 793 0.05 WesternSam a . ............. 298 0.02 36 0.5 35 548 0.04 Yemen. hepublic of ............ 1.241 0.09 150 10.5 139 1,491 0.10 Zaire .2............ . . 2,543 0.19 319 25.4 293 2,893 020 Zambia ... 1,577 0.11 190 15.6 175 1,827 0.13 Zimbabwe.. ..... .... . 3.325 024 401 22.4 - 379 3,575 -025 Total-June 30. 1994 ..1.4091ZS lO. M -- 110.66418 S159t338 -loom5= 8 1.00 Total-4une 30, 1993 .......... 1.372648 S165,589 510.5307 S155.058 1.416.648 May dow fm te s-m o indl fges sn becus o roundg. The Notes to cialattlumfl -n Inbtal pta of turn SbutmLmt4. Notes to Financiad Statement 187. Notes to Financial Statements Summary of Significant Accounting and Related Policies The IlEMrs fnncal sblat are pmd in cmnbomity wih ft - discstinued in 1964 with respect to subee tms and no luher ad- coutng pdnciples gealy ac lptd in the Unitd Sues and with Inter- dilns are being made to iL ulft Accounting Standiars -sianS Accounting .madoni. Tlre General renm consists al mmings [mm prior fiscyeals which, in the judo lt el be xeufive Directors, snould be rained in the tWs busi- Transladon of Currencies ness - The Ws8lf ncalcW st areressed in urnsto U.S doilssely Surplus nss at eamrings tra pri rg ye wtich are td by tar the rposeo sunmmrWrig Mte IRD's financi position and flserts ft IM ui a tibet decision Is made on their diswasiion or It con- d its opeaons tr the covenience ot is m s and other in re diVans a tanser lr specie uses havne een met parties -- Uniiacaed rt irae cosiss o eanings in te currt tis2 year. The lORD is art intmatul irgazalian witch co ts ii operations in -t Commuting in 195D a eoror all at the Unalltolad net incme his mraedest all at its astbes The IBtRs esou are deive umn its been allocated to the General rse Addtiually, upon approa oat fe capitla. borwings. ard acacuulied eanins bn to wmos nemnies. dto Gmos lshave been made outo Unallocaed net inmn The lDRD hasanuonber ot g a policies aind at mirimizingechrnge-rae tofthle alet nalBt DelapriAssodan (IDA) oartaciliesadminmrted risk in a rmjaurcv envinm The no 8I mathes its borrowing jg.. by IDA). te Global Evio it Tnrst Fund. he Tmtea AssstTanceTst gatans in any one amur (u (altr p acities) WM asff in de swe Fud tar te Union Sovie Sacialist Republics art Su arr;st as prrbest by its Ares af Agren tna,ly by holding or telding te paceds its bmowings in the sDacencies in which fly Loans ate bMmed In addti. te IBRD peiadially exlertakus scy mner- sions to more dosey math the mencies undeflying its rnd ei All o ftl s ou s are nude itn o guaraneed bymern s em pt knis withth at ft oa uding loan Wnh espet to its e erns the tin the timatinal hnce Crporation (FC) The nujomity oat lhe lD's IiR[) does not covat ane mncy into anolter ee for smal amwouts tans have repyent liatns in various crecies detmined on Iru requr to meet certail obliations and opatoal nees tusis a a ar Wy ,Raolin ssnm, whc is designed to equalie exlrge- rate risks among boroe Snge curency loans are being alerd on a Assets ard liabRiliie are trainslate at ffwie errctrage rafte at the end ofpt o *ft Ecpt gfh Cerain Wm whh e lr to the cuwenc ft pered. peioc e and enpese a s are translated at the mady ad ateand all sle uncy at athes on whIch qt are ecognzed or at aae e exchange loans a repaate in tte arnmcies disuseL intest on all Wmas is ras in ad dubring each month Trastatirn adus wm ft aeep ui d in tre curencies dised and oustand lion at h elting i capil subsipfiom described in Nae & are chaged er credite to Equtiq Inorent drffe costs assacia wit originating loan - epensed as incured as such maants ate consided im ntma Valuatton of Capital Stock Tre 1BM does not resed interest or princi paymt osn it loans or paripate in debt rech iing ag nt respec to its as In In the Ats at AgrernL the capitl stak at the IBO is upxessed in cept cass. her, such as wven il rnta at a harmed tents oa 'uS. dlas at the weigt and fineness in eket an July 1, 1944- proecd has been dayed. lon morization scedule mar be mordife (1944 dollars). Following the abolibmon o gold as a cainrnci denoainatr I to awa substnti repayments pruir to projet cmletion. It is fe polity ol the manelarysrstem and the repeal at tleprovision o te US law o the IBRD to pla in naccrl saus all lWm made lo or. guane deiing ft par value be U.S. dollar in rms at gg ftl pre-tistng by a mrnber ottfe lORD il p a . ltn. orcher ds ilb respect- basis tor hanslatinq 1944 dollars into arert dollars ar into any atm to ary such lan are aordue by more thn six montrless the 1311 cwrncy disapea The Ejmtive Direrws ot the END have dcidedL taTent deermines tt the overda amount will be calleed in Die until suh time as the releant visions at te Aticles of Ageemen are irmnediae htr in adSdti I develMoptrt cred.ls by IDA to a snter aend, ht te wrds 'U.S. dollars t the wt and fineess in et gemmrrent are plae in nonaccnjal sabs, all loans a ta mseber ga- on Julytg. 1944- in Arfide U. Seion 2(a) at tE Afides of A tre e dtt entwrIaim sobe pLced in nonauaW stas by Ie fD. On the dae te 1011 are intpreted to mci theSpedal Dmwing Fight (SOI) introduced a menmes kon are plaed in nonacra stabs unpaid inest and air by tIe hitatial Monetar Fund as the SOF was valted in Wms a US. charges acned on toWrs tstanding to te in ber ame deducted Irm the dollars inmmediately beone the introuction atte btai mthd ofvalring incone at re orent Perbd. i ard other chages an nornuing ft SUR on July 1. 1914. such value being S120635 tar one SDN. lans are induded in incont only to the tM payments h ve acataly been receied by the IBRa On t date a nmuter pays in hull all owerm R etain e d- E arnin g s 3tiOI I =. k n e5 % cm Z walo staIrs its eligibility tor rw rnEa g- a orttt and all 's oveW intee and other chges including Retained earnings consists ot allocated snout (Spe rse General font pu ys are reconized as ne in the curent Perio resere, and Surplus) and Unallocated ret income The ORD hUs not de- The IBRD deterininesftaccumulat pvwision r loan lsses based on an dared or paid any dividends to its menbers. assessnent f colleotihility rif in ft lott loan pordfio. including loans The Special reserve consists oft loan cemnhsiens wt ns se in noaual sII Tthe accumulted povsiwon is pericalty adjused The Special 9ma consists ofe-e S is-me-oOrts s_ aside Pwb _in asdana reviwotftprevICiranes andwoldbeusedto meet Artde [V.Samti6.SofftAatdleofAlDceenuntwlase to be hdd in Wma as M ui moiu r wf f =o liquid assets. Thes asst may he used only lot ft purpose at meeting tIne cn spvrovsin (and of the snot ot ft Special reserve). fte liabuiiesm at tHe END on its borrowngs and guarantee in Ire event at ecs odb nlde nM d iO fnt iioe 4sref ddauts on lo(m made, ptdpatt in, or guarned by te 1R0D. The to the aImeuluded vin ate deontent at nwe or oa to irnes Specia resrv assets are irtluderi under lnvestrnents. comprising bOga- ''' ead!scaoccetnnon lirs ot the United Stles Govermt its agecie and other olficial en- Lies. The allocatiap a such co asions to fe Special resere was ( -n- 188 IBRD Rnarclal Statements Notes to Financial Statements tx Investments opeira onwly wt I cnEt Dth rmpeiw netr and tr ad- ninishain e eess. The eqiialenerl t 5 at.444 million (55.197 million- Th 1BR10 canies its imen securies at nwketivalue. Bot realized ad Jme 30.1993) has been ubeltr ending prposes, wilt sch comet undized gahis ad losss ae indued in income trm invesb ns From tie to ime. the ERD etbrs it vorad conacts tarb te sale orpurise Miananance of Valie: Aue IL Sedon 9 at ll Arddes al Aree- at imement seudlies. hese t _scti ;e ecorded at the lime at rntn proides tar mainance at wat-. as f the lime at suzbscripble at cattitunenL sud rshimed enides. riing (1) te mnuer to male addifnal pa-ents to lie ILRD in tle neot aw le par vaiue a its osenq is Dute tohe nane d de invesnw htld by he EID and ils polices edud or be bre hange va l its ar cy Is sin le opinirn 0 gawming te level and use at su ie nts. the BRD dassiles tMe eIBRDdeprd'toasipficanteasinitsltriosanrd( beIBRD investnenl poto as an deleent d liquidily in the Stbu of Ca D torein thseinernbe m ev erl 1 the D par walued its curecyis Flows irased. Shiafreoencis no loge hiave par vallues mainlertance-ol-value aonts Fair Value of Financial Instruments a eb n u m r a afls Thetefii carris lls tinveStteSsE nuSwa iu Arvs atdaer tinarci crncagansnthedad s w iu d teEID 4 capUtd basedan dm1974 iteneb are ni t ierded in tet accatmis a dm IN the,l a re disclosed SORL Uenbesaresrequied to make paetsto lie Dil theiraows in Note Cat additional itrea scond dadeprecialte sill* d relaIv to tandard ou vale. FurTllmnior. me i Cioe Off1i s dcde to adopt a polio' at reimwsu4y r,el5rs mhetairvle d finanl inswumelu Ms are shunerm appraitiates teir whose cumricis atiwae sgnicanty in fl at ie Sit. eot vlue carrying Wa2U'k urece ar on nrtetc-tvu - - - - - l~~~~~~~~~ith nspec to mgrktacd cwimes o anulo0an. mawo -tvue . bica insburnmets for which market quobas awe avaitable hae bee obigations bmT w ective od as sit curencis are rcverd by me valuedat flpevailingmaedevalue Fancial tumetsforwhich nwk 39f. The maintnie4-vaue amnt rlating l rsticted arencies quofm wre no; teamly avile have been va'ued using metoidologies outfnlan aie inIukd in Aonts rured to nuiin vale of currency and assumptions that necessanly equire the use of subjediec judgments. hodings-amou deferred. Accortgly tbe amu waue at whidsch n lrimnna irumnnts coudd bh erwipd in acufentnaisa n orwterweyareadltalyrehangable Mrnbershlp: On FuMny 25. 1993. t i lOWs ective Dirctos is not deteminiabt- decidedliatifieSocialistFedeal Republic al Yupslavia (SF)hatand tobeamerrteratme ERDanduthteRepublictdosBiaandmrginaL RertssjflaUlons Ie ReApuic at Crmaia. the mr Yugaaw Republic at _Mceia, me Republic of Sowenia and the Federal Repubic at Yugavia Sebia and CUrin regasslians d tm prior yeas kMrntio bve bee made to Montenegro) we audrizEd to simad to the SFtrs mentbship whe cnfm to mte o,rn erN pntUr. mitn equirent are met. Thme at Me fe tsuasa Repubjtsfl Re lcs Croatia and Soenia ard V tfer Yugslav Republi: of Macedonia--tnve situ' hrwn muemes at Me 1BRD. The paid-in portio Note Ai-C Ital StOck, Restricted CurrencisM a the SFrissisuted captli allocatd tol the r smsso Repucs Maintenance of Value, and Membership (pe Repubtk ol Bosl arl Htaeoa and die Feda Republic ot Yu- goasvia (Sebia and Morlenepa)) is included under Payments an aut Capital SEcic At June 30. 1994. te IBRD's captal comprsed at perdng subsciirts.s 1.525248 (1.525.659-June 30. 1993) authorized shales. of which 1.409.235 (I.37.64-Jun 31L1993) share had been subscibed. Eacht se has a par value otO.1 mirion 1974 SORS, valued at the rate ofinmncing and Guarantees S12035 per 1974 SUR. Of the sbscribed capital. S10a,65 million Loas: On Augt 3 1993. Me IBRD's Eotive Dir s approed a (S10,531 mirinr-Juum 30. 199 has been paid in. aid t reniuto one-year ines wyir at 25 basis pt-s an dsbursed and ainstmg S15935 malian (St55.058 mion-June 30. 1993 is subjectlo call only liar al pantperiods e i meisat gear eldung June 3D. when meuired to rfes lte obrigations of Me IBIRD creted by brrow or 1994 for aiie bomrroW r For theti ys endeo June 3. 1993. me guranteing [mm As to S136002 mllion (St32471 milion-June 30 . hamS waer axpowved ves 35 basis points. On August 3.1I93 the 1993) ie restridko on calls is imposed by the Artces ot Agment and Ex ve Oi isa eIn uteso endd mep etr eoawiuwt lee wdaiv alO50 as to 523336 million (5 7 minion-June 31 t9931 by resotutions oi basis points an undsue loansItil bor tor anaditua priod n3 Board oa Goveror o - year. Restucad Currencies: The porion d mpital subsc ns paid i On Fubrry 25. 199 Ihe ItROs Exetive Dimors dedd utblte to the 1B0D is dlvicd into tW part (1)S1p67 mailion (S1.053 mllio- S ocis Fraal Republic Ygoslavia(gSIaM had ceasd to be anentber June 30. 1993) initially paid in gold or U.S. dolbls and 025959B mllion d te 15ID and ft the Republic oa Bosnia and Heina. te Republic (59478 milfioaune 3M1993) paid in cat or noninters-bearing de- at crau. me tome Yuostav ReP ic of Moria. e Republic d mand oblitllions denominaed eimer in the wrencies d tie r tdive SIwePa ard me Feal Repuric S Yuosglaia (Sbia ad Montengo) m bers or in US dollars. The ararntns mentioned in (1) above, and O) OMlY) we auftrized to sucee b m SFRY's _mtip whm coain S779 millim (656i million-Jne 30 1993) which were rprctased by mremus were M kindrig ing ka a Ihal ae t with mhe mmns with US. dolars and 2ii 5B54 million (S205 millio-June 30. tIBRD on me IBRt lomss nad! to or prarated by Vt SFRfY wici me 1993) which were me proceeds fromn encashments of US.-dollar- pabcuar sces Republic asned. denmina otes wtidi are included in U' amints mentined in 2 abov are beely usable by te ID inany d is opeatoim The ption t Thue t mte frie sussr Rqpublics-e Repblics oi Croatia and Sb- me anoints paid in U5L-dollar-denont--ed nres are unshed by te vuiia and me tommrYugosba RP ic of Macedonla-have sinre became 9 itamacordbwncewuakthessgt d beteeethememersandthe muttrs of me Mn Wilth teseto me FRY. in Febiuay 1993 the M MMD. The rernaiing anoints iaid in be cusacies dcOmen es. re- reached an aPewi tial Republic tor me appoiomet and serice end to as rst cumnces. ar usable by de IRD in ts let i d debl due ID tl IBfD en loamwade to or guaanteed by reSfRYai Notes to Financal Statements 189 assmted by Fe FRY. whil chramimned a Fetna 1992 intim agmnit Cofimuncing and Guarantow The lBRD has ent ito agre- bwn the SFRY ls cnisting a die On publics ol Bosnia and Hzea- nubs fr lamn syndiced by oer finsnial Institaions iter by a direct gonia Macedonia. Monlro and Serbia) and die IBRD pertaining. pitpo in, or a parti guarnie . loans far beneit d netr arung othe things to mcr loans. A t o te date hureal nf debt suite countries ora paia gpwlae ot scrities ssued byan enrty eligiMe for payments have been received by the l3RD Imm te FRlY. Wit respec to the IBRO loans. The liBRDs air pauipations m syndated loans am included Republc of Rsnia and Heregovia. a preliminay undetndig was In repded loan balans. reached in June1993 on the loans nade to or guarantee by thei SFRY to be as-nied by ht Reoubric. Untl an annm l is* l beS Guarantes ot 11.181 million at June 3Dr 1994 (11.134 million-June 30. rting bDa Republic are included wit ft Ians assumed by Ihe FRY in 1993 were not fnckled in reported loan bala S173 million d Omse accordance mitl die lORDsabov-metioned _ag nwih de FRY (Also gIoaes we subij to cal at Jine 30.1994 1150 aillion-itne 30. se No A). 1SM). Al June 30. 1994. no loam payable to te lRD o thean Mmae riterFed The I0RD has pfaili guafled te timey papyntS ineresam tson to in me following paraphs west overdue by more dun tree montes. curiae Mms t Mav me been s&d At June 30. 1994. 1hs gnaree approximatigS4 million (X5 million-June30. I993). wmeesunjotb tol. Al June 3A 1994. de loans made lo o garanteed by certain member ountrie and two oth cmunt-he FRY and de Republic of Bosnia and Sb ry Lein91- Limit Under the Akles Agement It tal Hez ngaa-wdi an aggregate principal balance outstandingat o12363 - amnoun amtnding of 9aranees. pDartiCipaions in loans d diect loans milrion (SZ497 million-Jue 30. 93 of which 51.009 milon pSM72 ad ebyl eURD maynot bantoceedmg nt million-Jne 31, 1993) wasoverdue. wer in namRua stas Asaosi0 of me sum at sub*ibat capital. resees. and surplis On te lOfs date. overdue interest and other charges in n t d t loanstobled lBaance Sheet msem and surplus correspond to nm beled Rebined $128 minion (509 mullion-June 3Q 19933 r these loam h Mt bee aamngs Cumul trn adjionalustmrL and Accumuslat lwnvisibfr in nicrl sau income tam loans for de fisca year enied June 30M lan losses. The IlBRDs Exeuti DireO storaises guernespusup n 1994 wDuld have been ighe by S149 dilon (S244 millio-June 30. tw viih aU gt iessued by tWRD becounledlwards ts fliit 1993g. A smuny of netber cunties and reulics with ls or gpar- at die tins Iey first become callble. irespee oflfie fihuitooud of an ane in nonaul status lolo act calL At June 30. 1994. such totl aaount as 1S09 billion or 58 pect (57 pee 30.1993) die Satutary Lending Lhai in millions ; Note C-FlInancial Instruments June 31 1994 Investments Phtcipal andin ed CmbyfiWpuir agstning haresde Nm ua ic The lORDO carides dts invetmit secues including corrspoding deny- outstandingc overdu e Nanaccrala, iu s. at rkaruet ataMoirgly. Me aryng mont rep- Db egOvia4K resuits fts lair value d tde partoFi. These lair values are based n "rWed Faesd RepWic at mart Wi where availble. i qwtd mats rices are not available, tair Yugosia ....... St.652 S SC September 1992 values are based on quotd markd prices d compaable irssument.. traIl. .... 48 43 DemenbeODw 1bbdo-lifblrteteaiisfufRDkhdngo Liberia ....... 4 8 ..... 43 De2June 1987 hr bothcn-and r st secrilim t IBRD li ii J uneg t a SUdn ........... 6 1 January 1994 fist S afmnizned deales and owtrpame. Cedit limits have been es- Syrian Arab Republc 418 42i hebu;y 1E - faMishe tor each cunlerpty b Iype d inrfuMent and mauity category. Zaire ............. 88 24 Nov.Ter 1993 The annualbd rate at sun on avrage inmet net of apunient to Totl . .. . 23 1.637 repurdase and caslh olaeal rceivK held during the lIscl year ded - - June 30. 1994. including bo realized and muaized gains and osses ws 3.568 pecnt (6.09 pectune 30. 1993). During the fiscal yearended une30. 1994. Congo and the omnrerYugoslav Republic of Maedonia paid St all f their areas and therdore lons to As pat O its aerSl portoia margaewnent state. de IBRD inests in tern mne oit aut arule sat As a resul ioe Im nm ns tor goenmet obigtons ana time depoits. These c ies also include fiscal yEar ended Jne 30.1994 incrsed by S52 minim corTespaoding to financial insbnments with cf-baianme sheet risk induding ftie fboaid -inome that would have beanacrued in rviou l For the Nifl conts WPer lowd contrats. opsons, and hort sales. year ended June 30. 1993. the inrease in loan income from loans to G o unrie or ut of nanaccu l status abring i able secusiiles. bonds. nsal aid otlher oigaldons ise or uncondtiion- ANNUiorL - ally guaranteed by govemments ot countries or other official enities An anaWsis oa Ve changes to lte accunulaied provision for loan losses inclding the agenies and Imnusumentalities o Ith govement at a cunty appears belowr or by mIute oerganians. in-tWilrions Thie Deposits: Trne deposits include certifies a deiL tIime de- In milfiors posits. btans acaptnce and aow obligations issued or uncondgiwri -__________________ p1994- 1993 aNsy gianleed by banks and dber friaci institutions. Balance, beginning of ft fisr wear S3.is S2540 Fhas and Forwardsc FRes and formard cor ace covnb Proision tor loan losses ....... 578 fordeytedddleiyofsecurikisormoneymnaleinfwnefin viidithe Tralation adjusnents ......... seller agrees to make ddfivery t a specified b dale od a speiied - -Balance. e d o tiefiscal year ................ Si4- 5 inrument, at a specified pmc or yie Coveed brards are agreeme : _ _ _ _ __end_of_am_ _s_y - -.-.... 190 IBRD Financdal-Stot sents Notes to Financial Statements in whSk cash In one arncy is caned into a dffernt currency and. based on dsuntedtsl ute shflawsusinglhe'atealthicthelBED could sinvmhneously. atharD dnea agreet is exemled proidrg for a undetaeborrowings d pwpunle maturlties atJune 30. 1994 pbsa 50 tmre mange at te tWo curencies in order to rnver ft onncy basis paint sprd Variable rut. loans: In 1982, ft IBRD ntgad its intre rale drs Options: Opions ar contalts ta allow le holder at the edien to by moving hrm tixed rat to wiable ra lndin The rae d on puodase or sell a financial Insnnun at a specied price and within a varable ale ltans is bass an flu IERDs awn cost of ualified barwings *es p fderlod al Ome ronm e sener or to Ie prda ohe Upow As plus a 50 basis point sprea. result In a passhrugh d ils average aselro opdi,s.te 1BRD receives a premium at the ae and nhears howing cmsts to tose membes lg bened klmt 0BRD loans Sine te tre risk a an unfaoable cne in te p;ice d the financia in nt rlerest Wae for vaiable 'ate loans is based on Ie ieest rate at the undeying ft apton. euliated booings. the ir dalue oa viable re tars tas been esfinmted based an 1th elatip al te fair vlue lo ote canyin dlue of lhe Short Saes: Sltr sales are sales t scurites not held in te l 's underling bnorwings. portolio at the tine oF te salt The IBRD nst pudue the socrdty al a aer date and bmrs fe rsk tM th mariue vaue at lIe seciy wil move Single currwncy kmn In 1993. te IRO intrUdued single anmy adversly bet en f ime of lIe sale and the Ine the seaniy must be loans onapitst basis.Te alesctrged an singecu r caam aeeua deriered t the six4-ant rlerence inlemak dlered rate Ior the applicable aamrcy Asuninrary -thecurrency .oipasihan at luvesirts. Inducing cur prWevailn on tIe snim t rse date, plus a cast maginemulato de A summary of de a nny cmposition of n vegmentL alt_ lul sBambs laWs wetW agenagn reate to the six-t London ba purdhsed under resale agreurts. atJune 30.1994 d June 30. 1993 is Olre Fale en its borrowings kuing single curr Ws. calcubled iro as foam lie preWious smnester at aweraged ares crmncie plus an int Iii trillions spread atSO basis pOals. Since Ihe interest rats for single curncy loans arembased onte infe a rat qaied borrowintgs. te lairvakue oa single Curec 1994 1993 lorrecy loans as br 9nated basl an tie reaionship of the lair vaue Dae mani . S3 - S 774 to fe casing idue ' .Aderlying borowings apanes yen 5...2 5.189 Poundssterin 1.479 1.455 nited Staes dolas .1.11.491 - t9U8 Borrowings Ote curFecies ... 2211 1,999 TlOt ...,,,,-521.911 520.3 The flowing Uti dles bM canying and esinaed lait dues l e borowigs portfolio as of Je 30. 1994 and he 30. 1993 Loans In nllins :Tetallowing table reflects the aryinand esmated airvalues alt e loan 1994 1993 portolio as oa June 30. 1994 and June 34. 1993. Cying E d Catying Eu In millions du fair value vakue lair value 7 - 19964- - - - 1993 Short-tem ....... S 334 S 3.34 53.75 S 375 Medium- and lang- Carrning Eed Carn Esined trm ......... 95115 iOtO2 92.488 99.5Q6 dWue fairvalue value rvaltlue Swas Cuffen, - -y Fred ra ......s 1 3 S 219.3 S 23.619 5 26.340 1.196 rates 59.551 94.234 8(t932 u.~~~~~~~ Net payable.. Z 197 VWGU%- Vaf n nes 89... -1 94.234- Oq8l32 86 - Net receale (513). 129) (775) (1.312) Single currecy Ints rae - 893 1.093 loan ras. .. 37 37 - 3 - ~~~~~~~~~~~~~~~~~~97,725 1M5W 93.6JS 10E,4B2 TTo ta.. 109291 S115.8X9 S10.451 S£12762 Toatal S lOt C 29 10.81 S97.460 S1D4257 All of the EROs loans dae iae to or guardeed by countries that are The esnaeo fairwa a n a qu oted nailt prces wer such ;sbersdo he lORD. exe Irt mseloansnmeto the IFC. TheEPO don pricesareavilabtt Wheeno quoted matuprice is avaitabtle the fairvalue not currensell its loans nor isthent-mrl of loams mmparaleto tame i eslinated based on the cost at whih te ER could cm sty udrtake made by the IB. Ihe IBRD has nemsuzert a toss on any of its las. boringswiM similarternsand reaining maturities. using theseonday altough from tine tD time certain borrowers hae Ionnd it diliult to aIne tralS yield acu The lair due at swaps epesen ft estmated ast S timely pamls for Pobatrredpeniads resuling in t'Ar loans being plaed - epacing iese contra on r, dat in nonaccrual stabs, Several boowers have enrged tram nonaccar sus alter a period af tine by brjing up-to-dam all prinipal iemnes Providingliqudlty andminiiing thecostultnmdsarekLa obtest e and all ineest paymerts. indudn -nterest and dher dg an overdue M's overll borrwing sbatey. The IBR1D uses swap in its bainaSg principal payment In an npt to regnize te rs inherent in these stategy to lower t oveall cost a its brwings for those r es who werdue payments. te IORD maints a pavision ar lun lbes TIe beret ban fm t The IBRD untes siap bausactns with a list baanceot the IAm IuI proision far loan lossesat June 30 1994 was at antioneed conepati. Credit and maLtrity limits twe been estab- * 3.324 milan (53.159 million-4ure 30. 1993). fishd for each couterpaty. Fxed rat koens: On ans negoiated prior to Jty 1982. the IRD Tlie aeage cost at borrowings out ig. indudmrg sholderm borrw- chrges intee at fixed aes. The estimated air value of Mmn lans is ings. dring the lisal sar ended Juoe 30. 1994 ws 6.74 peent (7.01 Notes to Financial Statements 191 percl-,wue 30 1293) recidng a reduclion inest ense of $34 Note E-Retalned Earnings and Allocation of mIllio (S3157 millon-June 3D. 1993) as a sut sa Sps. Net Income Currency swaps: The IBR1 has eneed Into curencq swaps which t Retad EamW Rined eRarigs cmriues te folloing dements as poeeds el a bormWing art conveed Inlo a dIffert curency and. shnui- GI June 30. 1994 and June3 1991 -. tneonusly a fonwd o agearnent is eaed priding rasched- ule Sh*rertnagesofithe bwowdes inrderorecorverthe urrency hI millins convted The cornbinaltin ol a turwing and a currency sywa prodics .1994 1993 the racia equvalent d substihrting a bowing in Ie cunq ained inft iMUalcmvsionforeorigirnal bowg. Speda rese ............ S 293 S 293 General reser ............ 13,124 11.144 Interest rat swaps: The IBRD undertes itrst re swaps. which Supks -.- 1.465 brsom a razed rate pyen ohbrlgion in a partiblar canocy ti a Unlocaled nd income lr lie floag rte obliion in a curency and vicersL acsal year .............u. 1.1,01 -1.130 Note D-RIsk Exposure of nnclal Tl ... .49 S14.32 Instruments with Off-Balance Sheet RIsks On August 31993. fe Eudie DectosSallocated S890 illion otthen =-ine earmed in Ihefisca yar endedJune 30.1993 to Ihe General res In de nnumd course of business, tfe IBRD is a lt lo a Varietb Of On Se1em9ber3audm oBtdnOaos awaov erns Slo oil-balance sleet lianca instruntS to m1nae its posure to matI million to the Debt Raion FacTlyaamilstred by DA and a transfer to fbIrs. ThesefInal is s hIvolveeleanentsdoaeltand manrtrss VDk by way ot grant at S140 nilon In an erivaentamount In SDRs. ut- meaess d theamounecu m edan the balanceshes CrGaita nresents d fnet iin* h gm t yew psn Jule3 1993t Ontbesame the maiunm pd(flW aouunirng loss due to poss7be nonperfounce by ofy. the Bad of Genors ao appoved a aLser ot S1.010 milion to olnligps and counteaIes wi b terms of the onnlrA Marlet Tisk t Gere e5n hn Sutus On Sep 24,1992, asamended on rpresents the pteil loss dre to fhe deame in t value of an off- Nonber 11.r193 fe e Boadu or Glu eOn s appmbe 2 hansaer add So25 ralaw e triancy a inrumt ntd prim aniq d in cia erest million in an eqalert anout in SORs [rm Surplus as a gr to IDA .ii surcesien rik as atrJunThedsk idmed 3.w-n mms A ien tlent replenisnet ot IDAs mas would becne ellctive W.. f-.aam eshetw rW sasatJtne30.1t994 and June 30. 193 is given Wht occured an December 1T. 1993. On Noemnber11. 1993. te Board ___________________________________ o . Goenors apo.ul a baVser. by way of granK otl SS million fram bminlions - . Sutplus to tlheTst Fund kbrGaa, b be afhiniserf byq 10 ;1994 1993 Transfers to ktdntm al Deeopment Association: The Board Goenors appoved tasfe to ID totaling S3.Omillion tomr FuturME .-S not inco me w fore macal r ars ended June 30, 1964 tou gh .uhues a-t- -.. - - June301981. ad June 30.1909 though June 30. 1993. On Septenber - T*latl cbact vlue ............ 5.6.101 - ssm 30. iii.1heBortfal GosmwvedabtsterTctkbywydfgrK potGrentit no Sonuae bitoof S140 million inan equivalent amun in SDRs. In addition on September counterpartis. 10 13 24.199Z as amedr on Nomber 11. 1993 Te Board d Guemnors - FarA! cont r a approved a d SfW325 milrion to IDA, trine trl r nishmt o * Totl contact Le ......le 4. Is rnus would becne effective, wich occurred an Deember 17, - *w Cdit exposure due to - - -1993. Trarner d 51 e23 million rnmied pable at June 30,1994 (9590 poilifl nunpenolnna by millionJune 3011993). Cve efrodcwnt Tmrnses to Debt Reduction Facity for DA-Only Coun- * G rossdt niceivaties 1.485 9S Mse The Board d GOvers apped ates to Ibe Det Reducion - * Gmoss payables 1.5113 997 FacKily for WA-Only Counties totaling S10O rlllon thmugh June30. 1993 a*Cmss paole s ......... On Spne3Q 99 e Bd of Governors approed a urthe anster potential nonpefonarie by -- dof St1O miNlion to l Debt Reducion Facility for IDA-Only Cwnies At countsr .aries - - 19 12 .i 30. 1994. St31 miNlion reraind pa e (55 million-4une 30. Options sold 1993). Total conacvalue - .C117 - 48 TransfertotthTrustFundtaorGaz ;OnNovembrber1.1993. the Short sals eard of Gvernors appmOfed a tasr to the Tnrut Nnd for Gaua byw y * Tda c t vue . . ,994 303 of gra o 550 millio. At June 30 1994. SS million remained payabte. B ORRnSW Currncy swaps * Gross receivables ....2 18.947 Note F * Gross payables - 20. 20.144 Administrative enses are net d the managemen te dl o545 minion * Credit eposue due to (S467 million-,une 31 1993) cged to IDA and s107 million S95. potential nonrmance by mUlionJtnme 311 993) chaDrged to reimnbrsable prir. kIduded in et coLurterlarlhi -728 1.312 amounts arged to reimntrsable programs ae located dmges d.S21 lntere ate swaps - millon (S20 million.-une 311993) charged to IFC and SI million (SI * Nonal principal *16.341 14,592 million-June 30. 199) charged to Tle Mullateral bvsre Gurate a* Cridt oeposure due to potential nonpedomnarc by Ageny (Mtl.GA). counterpftes .....-..... . Il 98 Contbons to specda pgrams represent grtsragrinal rearh - Less thn £0.5 minion -the controlat od rhowdcsi. and ofter o tdapO activitie . 192 lOBIM fnancial Statements Notes to Financial Statementstn As of Jut 30.1994.1 b IED has prvided tar liabiiles asscaled vit The weightedaeaage dismnt rae sed In dffmt ing theataal prese Iheestimaltd costs al beneIts Wodoed tombmer or bdh le yms aner M vwue et te praied bneft obligation was 825 perad ([75 percent- enipone but beoe nliremot The effc i not marIal to the tindal Jue 30(1993). The d el projefd coqwisaton edes was calculaed stateents based on a scale t provides lo a deceasing rate at stay huse depending on age, beginning wit 13. peret at age 20 and deceaq to Note G-Staff Retirement Plan 65 percd at age64 ThI epeced long-tenn ral reha] -n assels ws 9 pecnt (9 perntJune 30. 1993). The IBRD has a defined beit retirent plm cvering ubstanialtly aIl at its sat. lTh Plan als cvrs sutislantialty all h stall ot IFC and M..GA Under Ihe Plan. fts am baud an te vr of atcnutbory smice and Note H-Retred Staff Beneft Plan the highs hryer aveage ot pensionable mmeratma as dained in the Pln. with the stafl conibLng a bed p qtge ot pensianala rnmu- The IBRD has a Retired Stall Beeits Pbl (IRSP) lD prvides cobin neratfaL ad lie Il1 contribuin the naireder of the acarially ddef- beMth ae and lde irancseu bflts to rims. All stall w me enmiled ra cost oa fute PlaI bent The IBRD uses tie aggrgaW metod for in f3 insurance pogms while in active seic and who med cain demeiing its contribution to the Pbn. Tle amoundt of tat contribution requlr- are eligible far bfts when Ith rach early ar nmoat n- apwprit es teet periiodc pension cost as deailed below. All cmbilions tinent age while whg tfr the EMD. The RP also covers mes s al to 1e Plan aid all adhr assets an inowe held torte pupss dt Ite Pbn IFC ad MJ.GA are held by de 13 separately ran the afltiassets ard inon oe l e IBRD. IDA IFC and M.lGA and art be ued onlr br the bent of the paticipants Reiees cofibuna lel an t wad lile insnce based onteamol h fhe Plan and their bneicaries, urtit all tWilities to tem hawe pa ot cveage Reiecontibutions iwad healh care am based on tength al or prvfad tor Ptn assets cnsist piily f eqity atr bWd inom surice and age at retirmend The END anually contbts the renuinder seimudtis wt mailer holdts o rata rd este and atv I 1tmnt oa bie adtaraly detemnied cost lot huhe bents Ml contributions to me SFPM and all a ass aid incomne held tor purposes d the RSuP are Net periodic penon wst har END participats hor 3e fiscal years end held bhe by Ihe spRD atelny frn f her asses arid iancme at ofe S. June 30.1994 ad June30. 1993, cnsised oa te lolming amnpanent IDA. IFC. and MJ.GA ard can be used only tar the benefilbfhe participants in the RBP and ther beneficiaries uil all liabilities to em have been paid Irt n -l e or poWided tor R5P assets cnsist prinanrl oy fixed income arnd equy 1-994 1993 securties Svie oe eamed during Du the fiscal yr ended Ame i0. 1993. tIBe RD reviewed and modfied It fl year ..... ......85 S 155 cetin assmpions used in clcubltig its acmuated postrtirent ben- Intest coastoen prised beit efin obligation (AEO) to rlIed acta epoi Thes moidicafins - agihon..tO 295 suled in an incase in the APBO. and a speiaal etie contrbution al Actual return on plan assets (342) (0) 5 343 million was made to kocd this huse. N ED's sme f ths Ne anrbzalion and debal (514 153 conributn son 315 artiton. The remainder was contrbuted by WC and Ndpet p d pension cost S 103 S 13 M1 LGA Nd periodic postfiren benefits cost tar IB padicipants lor the lisl The pattion of this costhd VW tes to Ihe IBRD and is incided in Adin- yers en e Jui 30. 1994 aind JAe 3( 11993 cnstled i ft tte flowing istraiveexpenses for the fiocl year ended Jne 30. 1994 is 63n milion (564 coingnents inillian-June 30. 1993). The bae has bun inuded in the nagmet eecharged to 0k In milli'on The kIlowing table sets fo the Plns idd salts atJunie 30. 1994 and 1994 1993 June 30. 1993: Senie a s earned duing the Fscal year ....£2...5.. S2 S 14 In millions bnterest cost on amautated - 1994 1993 postretiwent benef abligalloar . 39 26 Acktarial presen value at benefit oWgimN mriaonadderd... (19) (3 Accunuwlied benefit obligaton .a Vested . SO S,047) 34 S24 Nonvested W(4 (34) Su- 91".bto..l....... ...(3.135) (3A381) The portion of Tbis cost tit ltes to te IERD ad is icxluded in Adhhm- Efct a poected opensaion leets (1J743 (1G73) Sirat veezf festor1fiscalyearendedJume30.1994 isS2l1 illron (S£5 -- niilroniJ-ne 30.1993). The balance has been inuded in the magenl Projected benetit obligation ........ (4,7) (4.754) lee cla to IDA. Plan asss at bair lue . 5387 4.927 Plan assets in ex praoieced beneit. obligalion ..... ... 5D9 173 .Herniang unrigolied net tiansition asset. - 117) (130) Unreconized prior serice cost .91 99 Unrecogized net gaii Iron past eeWence difelrt from that assumed and kamn chanob in assumptions ....... .... (43 (142) Prepa7id n cost .............. . S 0 S 0 Notes to Financi Staternents 193 The Mblwing tablessets ad lhe RSBP's lnded stbusal Jne30 1994 and Of heS33 millin ppld as alJure 30.19943311 million Isathbubble June 3 1993: to Me IBRD and Is induded In Miscellaneous asset an ne Bance e. The reruinder has beat atihaed to IFC and IAGA. In Millions 19941millio For Jute 310 1994, fte APBO vas deermn-ined using hina care cost ed 1994 19913 taes of 122 to 16.4 percenL dnasing gually lo 5.pe8tn In 2i10 Acomuiat postriremnnt bene bligalon and Ihmefe The hfith we cost bend a used lor June 31. 1993. was Rfetrees $. SQ2&) S1219) 11:5 to 162 percenl decreasing gradally to 5.0 percent in 2010 and fte- Fully eigible active plan rticlpans .... (119) 1101) ater. Outer active plan patticiputs .... ... (9 ( The 2* ae cost trend a assumpton has a signifiant mItt an the (644) (603) amens qupard. To illustralt. icreasing Ite assumed health are CasI Pbn assets at birf Iue . .................... 702 624 tend as by one pemtg pant would In e fte accsulaiad pos- Plan assets in aess f accumulaed tetelment beril obligaion as t dJue 30 1994 by S132 milion and the posretiranet beneit oblrab ......... 58 21 net periodic posrerit beft cost tor thescal f rs en ended byr SI5 huecognied tansbition o i o ..... - 29 million. LhuecDgnized prior s=rve costs . (16) - discount a ud i determining Ite acumo Wed Unrecagobd not loss frm past punce dhterert tram tat assumed pfstihmitW bett obliglan Wa 825 prcl: (75 p tJune 30. ad from changes in assumpbons ....... 296 293 1993) g .Tdempee g4ermraore mmonplauawiwasf825perent Prid potretirenut bent cast ........ S 33( S 343 l3une3 11993. 194 Report of Independent Accountants Price Walerhouse The Hague New York (International Firm) Beijing Tokyo Hong Kong Washinglon London Price Waterhouse July 27, 1994 President and Board of Governors International Bank for Reconstruction and Development In our opinion, the financial statements appearing on pages 174 through 193 of this Report present fairly, in all material respects, in terms of United States dollars. the financial position of the aternational Bank for Reconstruction and DevelopmentatJune 30,1994and 1993, andthe results of its operations and itscashflows for the years then ended m conformity with generally accepted accounting principles in the United States and with International Accounting Standards. These financial statements are the responsibility of management of the International Bank for Reconstruction and Development; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards, including Intemational Standards on Auditing, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and signfficant estimates mnade by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Pnc U&Vfu 195 Financial Statements of the International Development Association and the Special Fund Administered by IDA Statements of Develop.nent Resources 196 Statements of Changes In Accumulated Surplus 197 Statements of Cash Flows 197 Summary Statement of Development Credits 198 Statement of Voting Power, and Subscrptions and Contributions 201 Notes to Finandal Statements 205 Report of Independent Accountants 209 196 IDA and Special Fund Financial Statements Statements of Development Resources June 30, 1994 and June 30, 1993 Expressed in millions of U.S. dollars IDA Speual Fund 1911 1993 1994 1993 Development Resources NET ASSETS AVAILABLE FOR DEVELOPMENT ACTIVITIES Cash and inwstrments immedialey available lor disbwsement Duefrom banks ............. .............................. S 65 S 54 3 2 S I Obligations ot governments and other otticial enlities-Notes A and F ....... ................ 1.368 1.457 5 24 Obligations of banks and other firuncial institutiuis-Notes A and F . .8..... , 1299 267 227 Net receivable (payable) on investMent secLrilies transactions-Notes A and F ........ 116 (22) ___ 2.425 2.788 274 252 Cash and inveslments not immediately availabie tor disbursement-Note 8 Duefrom banks ........................................... 2 4 Obligations af goernments and other official entilies-Notes A and F ............................ ............ 136 133 Obligations of banks and Slier liriancial inslitutions-Noles A and F .....................1.......... ...... 60 127 639 264 - _ Receivables on acount of subscriptions and contributions Nonnegotable. noninterest-bearintgdemand obligations .................................................. 21.548 19.952 33 49 Subscriptions and contributions-Note C Ammints due ................................................ 342 26B Amounts not yet due ......... .................................. 10,843 119 Restricted asset .......................................... 286 281 33.019 20.620 33 49 Receivable kram the Internatioral Bank for Reconstructiom and Devetonomnt-Note D ... ................. ................... 1.023 960 Other assets. net ................................................. 98 96 - 1 Total net assets available for developmer activites ....... ................. 37204 24.728 307 302 DEVELOPMENT CREDITS OUTSTANDING (see Summary Stament of Development Credits and Notes E and F) Tow development credits ............... ....8..... 37,880 80.090 21 39 Less undisbsed ance ............. ......................... .. 25,070 23.932 21 39 Total developmet credits distursed and outstanding .............. ......... 62.810 56.158 - - Total development resources .........1.................... 100,014 580.886 S307 5302 Funding of Development Resources Member subscriptions and contribtmons (see Staumenl ot Voting Powr, and Subsciptions and Conributions. Note C) Unrestricted ................ I ................................. S 89.258 S72.496 SZ26 S218 Restricted ................................................... 286 251 89.544 72.777 206 218 Payments on account of pending mernbeship-Note C ....... .................. 9 10 Transter trom the IBRD-Note 0 ...... .......................... 4.176 3.661 Cumulative translalion adjustment on devopment credits ....................... 4.807 3266 Accurnulated surplus (see Statements of Changes in Accumulated Surplus) ............................................ .264 1.110 101 84 Securiies sold under agreenents to repurchase and payable for cash collateral received-Note A ......... ..................................... 214 62 Total funding of development resources ...... ............... S100.014 S80.886 3307 5302 The Notes to Financial Statements are an integral par of these Statements. Statemenis of Cash Floms 197 Statements of Changes in Accumulated Surplus For the fiscal year ended June 30, 1994 and June 30,1993 Expressed in milions of U.S. dollars IDA Special Fund 1994 1993 1994 1993 ACCUMULATED SURPWS Income trom development credits-Notes E and G . . S 417 S 398 Income Irom investments-Nole . .............. 168 373 S 18 S 30 Management tee charged by the International Bank tor Reconsiruction and Development-Note G ....... (545) (467) Amortization of discount on subscription advances .... (9) (7) Changes from operations .......................31 297 18 30 Effect af exchange rate changes an accumulated surplus 123 (446) (1) (50) Net changes ............... 154 (149) 17 (20) Balance at beginning of the tiscal year ............ 1,110 1,259 84 104 Balance at end oa the iscal year ................. 1264 S1.110 S101 5 B 84 Statements of Cash Flows For the fiscal year ended June 30, 1994 and June 30. 1993 Expressed in millions of U.S. dollars IDA Specal Fund 1994 1993 1994 1993 Cash flows from development activities Development credit disbursements ....... ...... 515.520] S(4.913) 6(11) S(33) Development credit principal repayments ........ 420 366 Net cash used in development activities (...... 5.100} (4.547) (11) (33) Cash flows from member subscriptions and contributions ....... 3.960 4.112 16 37 Cash flows from other contributions ....... ....... 452 303 Cash flows from operating activities Changes from operations .......... .......... 31 297 18 30 Adjustments to reconcile changer. fmm operations to net cash provided by operating acbtvifies Amortization of discount on subscripion advances 9 7 Net changes in other assets and liabilities ...... 163 108 - - Net cash provided by operating activities ..... 203 412 18 30 Eftect of exchange rate changes on cash and investnents immediately available for disbursement . 122 (462) (1) (501 Net (decrease) increase in cash and investments immediately available far disbursement ...... .... (363) (182) 22 (16) Cash and investments immediately avaiable tor disbursement at beginning of the fiscal year 8...... 2788 970 252 268 Cash and investments immediately available for disbursement at end of the fiscal year .......$.... 2.425 S 2J788 5274 $252 The Notes ti Financial Slatenents are an integral part of these Statemens. 198 IDA and Speclol Fund Financial Statements Summary Statement of Development Credits June 30, 1994 Expressed in millons of U.S. dollars IDA Special Fund Total Percentage of Total Undisbursed Devdopment Toa Undisbursed Deopnet Developmmnl dlopmenv development development credits dewelopment develpmnent credits credits credits Boram r or guarantor credts aedits' ousutnding credits credits outandig outandig outsadio Afghanistan ......... S 75 S - S 75 5- - - $ 75 0.12 Albania . 138 87 51 - - - 51 0.08 Angola .260 231 29 - - - 29 0.05 Armenia .29 26 3 - - - 3 Bangladesh. 6.862 1,662 5,200 6 - 6 5.206 8.29 Benin .584 157 427 12 - 12 439 0.70 Bhutan 29 9 20 - - - 20 0.03 Bolivia 1,002 390 612 - - - 612 0.97 Botana 12 - 12 - - - 12 0.02 Burkina Faso 773 299 474 - - - 474 0.75 Burundi .748 202 546 - - - 546 0.87 Cambodia .65 35 30 - - - 30 0.05 Cameroon .408 76 332 - - - 332 0.53 Cape Verde 48 23 25 - - - 25 0.04 Central Arican Republic 455 90 365 - - - 365 0.58 Chad .447 135 312 - - - 312 0.50 Chile .12 - 12 - - - 12 0.02 China .8.691 2.983 5.708 82 - 82 5.790 9.22 Colombia .12 - 12 - - - 12 0.02 Comors .81 33 48 - - 48 0.08 Congo .173 - 173 - - - 173 020 CostaRica .3 - 3 - - - 3 Cole d'ivoire 549 132 417 - - - 417 0.66 Djibuui .51 9 42 - - - 42 OD7 Dominica . 12 12 - - - 12 D02 Dominican Republic ... 18 - 18 - - - 18 0.03 Ecuador. 28 - 26 - - - 28 0.04 Egypt Arab Republic of 1,323 385 938 - - - 938 1.49 ElSalvador 21 - 21 - - - 21 0.03 Equatorial Guinea 59 11 48 - - - 48 O.0B Ethiopia. 1,950 653 1,297 - - - 1,297 2.07 Gambia. The 186 43 143 - - - 143 0.23 Ghana n . 904 938 1,966 49 - 49 2015 321 brenada .7 - 7 - - - 7 0.01 Guiea .960 220 740 - - - 740 1.1B Guinea-Bissau 225 38 187 6 - 6 193 0.31 Guyan .254 79 175 - - - 175 0.28 Haiti .474 146 328 14 - 14 342 0.55 Honduras ........... 446 178 268 - - - 268 0.43 India ............ 20.979 4,857 16,122 91 21 70 16,192 25.78 Indonesia ........... 787 - 787 - - - 787 1.25 Jordan ............ 72 - 72 - - 72 0.12 Kenya ............ 2,211 514 1,697 52 - 52 1.749 2.78 Koma. Republic of .... 87 - 87 - - - 87 0.14 Kyrgyz Republic ...... 143 102 41 - - - 41 0.06 Lao People's Democratic Republic ......... 413 173 240 - - - 240 0.38 Lesoto ............ 223 82 141 - - - 141 0.22 Liberia ............. 110 4 106 - - - 106 0.17 Summary Stotement of Development Credits 199 IDA Special Fund Tom Percentage ol ToWl Undisbursed Development TOta Undisbursed Developmen DevOelopmen development development deelopment credits developmert developime cudb credits cedits Borrower or guarantor credits credits1 musnding credits credits ouanding outsnding outstanding Macedonia, former Yugoslav Republic ol. S 42 S - S 42 S - S - S- $ 42 0.07 Madagascar. 1.308 358 950 40 - 40 990 1.58 Malawi .1,412 304 1,108 19 - 19 1,127 1.79 Maldives ........... 37 7 30 - - - 30 0.05 Mali .994 267 727 14 - 14 741 I.t8 Mauritania .377 84 293 - - - 293 OAT Mauiius . .17 - 17 - - - 17 0.03 Mongolia .89 45 44 - - - 44 0.07 Moroco. 35 - 35 - - - 35 0.06 Mozambique. 1,531 939 592 - - - 592 094 Myanmar .18 33 785 - - - 785 1.25 Nepal .1,453 561 892 - - - 892 1.42 Nicargua . .351 142 209 - - - 209 0.33 Niger. 686 138 548 - - - 548 0.87 Nigeria .953 797 156 - - - 156 0.25 Pakistan. 4492 1,599 2.893 - - - 2.893 4.61 Papua New Guinea 110 - 110 - - - 110 0.17 Paraguay 38 - 38 - - - 38 0.06 Philippines .280 109 171 - - - 171 0.27 anda . .716 242 474 - - - 474 0.75 SL Kitts and N is . . - - 2 2 - - - 2 St Lucia 6 6 - - 6 0.01 SL Vincent and the Grenadines 2 - 2 6 - 6 8 0.01 Sio Tome and Principe . 70 25 45 - - 45 0.07 Senegal .1,198 232 966 26 - 26 992 158 Sierra Leone 328 155 173 - - - .173 0.2B Solomon Islands 37 16 21 - - - 21 0.03 Somala . .555 131 424 - - - 424 0.68 Sri Lanka .......... 1.838 538 1,300 - - - 1.300 207 Sudan. 1,237 1 1,236 14 - 14 1,250 1.99 Swiland 6 - 6 - - - 6 0.01 Syrian Arab Republic .. 44 - 44 - - _ 44 0.07 Tanzania. 2,87 950 1,937 - - - 1,937 3.08 Thailand .104 - 104 - - - 104 0.17 TDo .607 141 466 26 - 26 492 0.78 Tonga .6 2 4 - - - 4 0.01 Tunisia .53 - 53 - - - 53 0.08 Turkey .139 - 139 - - - 139 0.22 Uganda ... ...... 2,361 888 1,473 - - - 1,473 235 Vanuatu .17 5 12 - - - 12 0.02 Viet Nam .391 335 56 - - - 56 0.09 WeslernSamoa 48 6 42 - - - 42 0.07 Yemen, Republic of 1,102 349 753 14 - 14 767 1.22 Zaire. 1,314 22 1.292 - - - 1;292 206 Zambia. 1,345 400 945 7 - 7 952 1.52 Zimbabwe .471 184 287 - - - 287 0.46 Subtotal members 87,306 25,067 62,299 478 21 457 62,756 99.92 (confinued) 200 IDA and Special Fund Financial Statements Summary Statement of Development Credits (conhlfece June 30, 1994 Expressed in millions of U.S. dollars IDA Special Fund Total Percentage at Total Undishursed Dvelopment Total Undisbursed Development Development developmenl development development credils dvelopment dweopmnent credits credits credils Borrower w guarantor cedits credits' nuislanding credits credits oubstandinp outstanding outstanding West African DevelopmentBank2.. S 64 S 40 $ 24 S- 5- 5- $ 24 0.04 Caiibbean Development Bank3 .45 23 22 - - - 22 0.03 Othe' .. - 8 _ - .8a 0.01 Total-June 30. 1994; 587.423 525.070 562353 5478 S 21 S457 562.810 10010 Total-June 30. 19935 S79.659 S23.932 $55.727 S470 S 39 S431 S56.158 indimates amounts less than SO million or 0.005 percent NM, 1. 01 the undisbursed balance at June 30. 1994. IDA tas eteret into irrevocable commitments to disburse 5229 million (S277 million-June 30. 193). 2 These devetoment cradits are tor the beneit oa Benin, Burkina Faso. Cte crlvonre Mali, Niger. Senegal. and Toga. 3a These development credits are for the benefit at Grenada and territories ot the United Kingdom (Associated States and Dependencies) in the Caribbean region. 4. Represenis development credits nade at a time when the aulhorities on Taiwan represented China irn IDA (prior to May 15. 190S). 5. In the Statement at Development Resources at June 30. 1994. toal development credits oa SB7.8B0 million M0.090 million-June 30. 1993) and toal development credits disnursed and outstanding of S62.810 millimn (586.158 million-June 30. 1993) include development credts outstanding at 5457 million (S431 million-June 30. 1993) which were origiated under Ihe Special Fund. since such amouns ae repayable to IDA (see Noles to hFnaal Statenents- Note E). Maturity Structure of Development Credits Disbursed and Outstanding Perod (DA Special Fund Total July 1. 1994 hrough June 30. 1995 ............... 5 554 S 5 S 559 July 1, 1995 through June 30. 1996 ............... 587 5 592 July 1. 1996 through June 30. 1997 ............... 653 5 658 July 1. 1997 through June 30. 1998 ............... 740 5 745 July 1, 1998 through June 30. 1Q99 ............... 902 5 907 July 1, 1999 through June 30. 2004 ............... 7.407 27 7.434 July 1. 2004 through June 30. 2009 0............... 1.098 69 10.167 July 1. 2009 through June 30. 2014 l............... 11.01 69 11.660 July 1. 2014 through June 30. 2019 ............... 10.663 69 10.732 July 1. 2019 through June 30. 2024 ....... ........ 9.050 69 9.119 July 1, 2024 through June 30. 2529 ............... 6.583 69 6.652 July 1, 2029 through June 30. 2034 ............... 3.069 60 3.129 July 1, 2034 through June 30. 2039 ............... 456 - 456 Total . ..... ....................... S62.353 S457 S62.810 NoTE 1. In the Stalement at Development Resources at June 30. 1994. total development credits disbursed and outstanding oa 6Z8D10 million (556.158 million- June 30. 1993) include development credits oustanding of S457 mtlion (S431 million-June 30. 1993) which were originated under the Special Fund. since sch amounts are repayable to IDA (see Notes to Financial Slatements-Note E). The Notes to Financial Statements are an integral part ot hese Statements. Voting Power, and Subscriptilons and Coniribullons 201 S"tatement of Voting Power, and Subscriptions and Contributions June 30, 1994 Expressed in millions of U.S. dollars except vote data IDA Number Percenitage Subscriptiorns special cl oi and Fund Miember VOteS tota centribuUflons coniiibultims Part I Members Auistralia ............. ...... 131.094 1.36 S 1.5251 8 - Austria.--- . .......------- 64.389 0567 750.4 Belgium .-.................. 103.228 1.07 1.1792 so Cafndda .......--------- .... 295.694 3.05 3.818.5 159 Dennmarki .................... 92.868 0.96 1.140.3 34 Fminand .. ........... ......65.952 0.68 578.1 France............... .... 3901814 4 04 614518 149 Germarny.-5--------------------.521 6.81 10.426.4 Iceland .........------ ..... 24.316 0.25 16-4 Irelartd.......... -------- 29.443 030 103.1 - Italy. ~.~........ ......... 259.450 2.68 2,941.? go Japan..- ------------------ 988.143 10.22 20.756.2 Kuwvait ... ................ 69.824 0.72 649.2 L-urembourg -........ .......... 25.51T 0-26 47.6 Netherdands ................... 205959 213 3.355.0 New Zealand.................29.602 0.31 100.1 Norway . - ------------ - 9.1414 0.97 1,075-4 40 P'ortugal ......... ....... 18.617 0.19 4-1 Ruessia ... .............. ... 28.202 0.29 143.3 South Atica ................... 29.813 0.31 83-1 Spain.............--------- 42.462 0.44 302.3 Sweden ........... ...... ... 192.95 2z00 2.221.1 74 S-witzerland ...............I.... 80016 0.83 984.? United Arab Emirasi.n .............. 1.367 0.01 5.6 Unfited Kingdom ................. 495.581 5-13 6.524.2-- United States .................... 1.490.101 15A1 21.831.5 Subtotal Part I Members2.............. 5.907.692 61.10 863718.9 596 Plar II Members Aighanistan................... 13.557 ([14 1.0 Alban'ia ................. 19.711 0.20 03 Algeria ................ .... 24.494 ([25 5.1 Angola ................. ... 45.662 0.47 7.9 Argerntina .................... 96.503 1.00 58.0 Armenia .................... 584 0.01 0.5 Bangladesh ................... 57640 0HU 7.3 Belize...................... 1 788 0.02 0.2 - Benin ............I...I...I.... 5.2977 0.05 0.6 ihta......................1223 0.13 0.1 Bolivia ..... .............. 29.552 0.31 1.4 Boisuaria.................... 23.686 0.24 0.2 Brazil ~..................... 158.7736 1.64 92i3 BuArina Faso................... 19.065 0.20 0.7 Burunidi..................... 22.398 0.23 tO0 Carnbodia................... 2.826 ('08 113 CameroDn ................... 18.56 0.19 1.3 Cape Verde ................... 4.948 0.05 0.1 Centrl Akican Republic ............... 10.920 0.11 ([6 Chad -..~................. 10.990 0-11 0.6 Chile ...----------------- 31.782 0.33 4.5 China ..................... 193.370 2.00 39.6 Colombia.................... 34.350 0.36 22.5 Comoaos .................... 13.141 0.14 0.1 Congo.----................ 6,685 ([07 0.6 Costa Rica.---- ----- ........ 12.32 ([13 ([3 C6le dlvoir ................... 17886 0.18 1.3 (contimNued 202 IDA andi Special Fund Financial Statermens Statement of Voting Power, and Subscriptions and Contributions cnbed Ju-ne 30, 1994 Euxpressed In millions of U.S. dollars except vote data IDA Nunmber Perceitge Sutscaiplions Spcal of at and Fund Pcnber' voles, tml cwrtribuioins conlributionis Part II Members (continued) Croatia .......... .......... 28.087 0.29 £ 5.5 S- Cypru . . . .. . . . . .. . . . . .. . . . . 27,628 0.29 1.1- Czech Republic...... ..... ....... 3B.648 0.40 23.8 Ojibeuli..........532 0.01 0.2 Donminica ............. ..... 14.985 0.15 0.1- Dominican Republic................. 25.333 0.25 0.6 Ecuador ................ .... 23279 0.24 0.8 Egypt Arab Republic ali.... ........... 45.364 0.47 6.7- El Salvador .5.................. 244 0.05 0.4 Equataoia Guinea ..... ... .... 6.167 0.60.4 Elhilopia -.............. .. .... 21.353 0.22 0.7- Fiji ....................... 755 ao07 0.7 Gabon ..................... 093 0.02 0.5 Ganrtie The .....................i.5 am1 0.a Georgia. ................... 22.523 0.23 0.9 Glanm. ............ ...... 22.131 0.23 3.0- Grme.................... 36.429 0.38 1812- Grenada................ .... 11B930 0.20 0.1 - Grsenala.................... 20.750 0.21 as5 - Gufinea..................... 27.284 0128 1.3 - Guinea-issau . -.~............... 4.982 0.05 0.2 - GUYn. .................... 18.180 0.19 1.0 - Haiti........... .......... 17,143 0.18 1.0 - Honduras...... ............... 21.3 0.22 0D4 - Hunga~ry.------- ........... 73.914 0.75 37.5 - Irdia...................... 300.767 3.11 55.1 - Indoroesia.............. ...... 94.802 0.98 14.8 - Iran. Islamic Republic at................ 15.455 0.16 5-7 - Iraq ...................... 9.407 0.10 1.0- israel ...... ..... ......... 20.567 0.21 2.5- Jordarn............ ......... 24.627 0.25 0.4 - Kazakhtrs .................n... 8065 0.01 1.8 - Kenya.......... ............ 25.750 0.27 22 - Kilibai . ... ... ... .. ... ... ... ... ... .. 4.777 1105 01 - Korea. Republic oft........ ......... 39.153 0140 113.5 - Kyrgy Republic..................580 (101 0.5 - Lao Peopie's Democatc Republic .. .......... 11.723 0.12 0.5 - Latvia .5................... 14 0.01 0.7 - Lebanon ......................62 0.09 0.6 - Lesato..................... 23.744 0.25 0.2 - Liberia ........ ............ 22,771 0.24 1.1 - Libya .................... .7571 1108 1.3 -. Macedonia loaner Yugcslav Rlepublic of .. ........ 15.759 0.16 1.0 - Madagascar ................... 10.797 0.11 1.2 - Malawi..................... 27.352 0.28 1.0 - Malaysia.................... 39.045 0O40 3.6 - Maldives. .~.................. 22,892 0.24 Mali.......... .......... 22A407 023 1.2- Marshall Islands. The.... .. ......... 4.90 0.05 Mauritania ...................ia.sas 0u.n as Mairhiusa..................... 28.318 0.29 1-2- Mexico ..................... 8.128 0.70 124.8- Micranesa .11.................. IB424 0.19 Voting Power, and Subs-criptions and Contributions 203 IDA Number Percentage Subscriptions Special of 0i and Fund Member1 votes total contributios CwIntributiois MoldDva 5........... .... 12 0.01. S 0.7 5 - Mongolia ... .. . ....... ----5.039 0.05 0.3 Meoroco. .............. .... 45.650 0.47 48 - Mozambique .................-- 5.721 '1.06 1.7 Myanmnar..... .. ....... ........ 35.1148 0.37 2.9 Nepal ............. ......25.765 0.27 0.7 Nicaraguia .... ....... ..... . 24.627 0.25 0.4 Niger .......... . ........ 16.541 0.17 0)7 Nigeria ..--------------- ---- 8.257 009 4.2 Oman .......... .......... 24.631 025 CA Pakistan ............I... ... 89.116 0.92 13.7 Panamfa............ .... 5 6570.05 Papua New Guinea.... ..... ........ 13.050 0.13 1.1 Paraguay .......... ...... ... 11.419 0.12 0.4 Peru 1................----990 (-10 2.1 Philippines ................... 15.583 0.17 65.5 Poland................... 224.289 2.32 52-1 Rwanda ................. . 17.371 0.19 1III SL. Kitts and Nevis .......... ...... 4.978 0.05 0.2 St. Luca 22....................416 0.23 0.2 SI. Vinocent and fth Grendines . ........---514 0.01 0.1 Sao Torni and Principe............--- 4)714 0.06 0.1 Saudi ArWabia .................. 330.314 3A42 2,033.2 Senegal ................. .. 27.102 0.28 2.2 Sierra Leone................... 12.657 0.13 1.0 Slovak Republic ................20893 0.22 7.0 Siovenia ........... ....... 18956 0.20 3.0 SoloTmn Islanrds.................. 518 0.01 0.1 Somalia .................... 10506 0.11 1.0 Sri Lanka .................... 42.359 0.44 4.0 Sudan .................. .. 22.886 024 1.3 Suaziland ................... .l11.073 0.11 0.4 SyTiant Arab Republic .......... ...... 7.651 0.08 1-2 Talikistan. .................... 20.568 0.21 0.5 Tanzania.................... 33.598 0.35 2.2 Thailand .................... 42.359 0.44 4.3 Togo ............. ...... 21.847 0.23 1.0 Toniga ..................... 11.380 0.12 '1.1 Trinidad and Tobago .... .........770 0fli 1.6 Tunisia..................... 2,793 0.03 1.9 Turke-y .......... .............................64.045 0.66 75.9 Uganda ................. ... 21.093 0.22 Z2.2 UJzbekistan ..... .............. 746 0.01 1.5 Vanuatu .................... 13.670 0.14 (12 Vilet Nam .8..............8.....9 0.09 1.9 Western Samoa .................. 13.061 0.14 0.1 Yeern..................... 24,658 0.26 2.1 Zaire...................... 12.164 0.13 3.8 Zantbia ................ ..26 868 028 3A Zimbabwe.................... 7.368 0.08 5.0 (continuied) 204 IDA and Speclal Fund Financial Slatements Statement of Voting Power, and Subscriptions and Contributions (continued) June 30, 1994 Expressed in millions ol U.S. dollars except vote data IDA Numner Percentage Subscriptions Special al at and Fund Mermber' votes latal conlribulions contributions Sublolal Pad 11 Members ................ 3,7,349 30.91 S 2.948t5 £- Total-June 30. 1994-' 9.668.041 1000 S89.66714 $596 Total-June 30. 19933 .......... .. ............ 8.862.437 10000 $72,911.3 $596 Indicaics arnounls less than $0.05 million. 1. See Notes to Financial Slatementsote C tor an explanation at the two categories al memnbership 2. May differ trom the sum oa individual figures shown because al rounding. 3. In the Statenents at Development Resources at June 30. 1994, member subscriptions and contributions al 5e9.544 million ($72.777 million-June 30. 1993) does not include $512 million (S512 million-June 30.1993) dl Switzedand's subscription and contribulions and includes Special Fund contributions oa S389 million (S375 million-une 30. 1993). S512 million ($512 million-June 30. 1993) ot Switzernd's-subscription and contribulions have not been included since this represents the diffenmc between the toial cofinancing grants ot S580 million provided by Switzeland directly to IDA borrowers as corlinanring grants between Ihe fourth and the ninth replenishmerts of IDA resources, and the July 1992 contribution by Switzernd ot Sfi million representing the present vlaue t tuture retlows on thes graTfs it t had been made through IDA on IDOs repryment terms. Special Fund contributions oa S339 million (S378 miilion-June 30. 19931 have been includ, since the developrnent credits that were funded using these resources are repayable to IDA (see Notas to Firancial Staements-Nole C!. The Notes to Financial Statements are an integral part of these Statements. Notes to Finonclal Statemenht 205 Notes to Financial Statements Summary of Significant Accounting and Related Policies IDA's linancial stalements are prpared in conlormity with the accounting lhe Executie Direclors, IDA had valued these subscriplions and contrlbu- principles generally accepted In the United Slates and with International tlons on the basis al the SDR at Ithe current markut value oa the SDR. Accounting Standards. The subscrIPtons and cntrlbutlons provided under the laurt rplenish- ment and therealter are expressed In menberse currencies or SDRs and are Or ganization and Operations payable In members currencies. Beginning July 1. 1985. subscriptlions and contribullons made available tar disbursement In -ash to IDA are translated IDA: IDA was established on September 24. 1960 to promote economic at madfte rales o1 exchange on the dates they were mnade avalable. Prior to development increase productivity. and raise the slandard ol Itving at its that date, subscriplions and conlributions which had been disbursed or developing country mernbers. convented Into other currencies were translated at market rates of exchange Special Fund: On Oclober 26. 1952. IDA establIshed the Special Fund on dates ol disbursement or conversion. Subscriptions and contributions not constituted by hinds to be contributed by nembers of IDA and adminmistered yet available for disburm ts are translated at marhke rates of exhange at by IDA. to supplement the regular re ources available for lending by IDA. the end 1l the accomnling perIod. The arrangements governing the Special Fund may be amended or termi- Special Fund: Beginning April 1. 1989, subscriptions and contributions nated by IDA's Executive Directors subject to the dareement oa a qualitied reeived but not yet disbursed. as well as subscriptions and contributons majority ot the contributors to the Special Fund. The resources of the Special disbursed or converted into other currencies, are transled at markelt rates Fund are kept separale from Ithe resources of IDA. ol exchange on the dates they were made available tor disbursement in cash to the Special Fund. Pdor lo that date, subscripions and conlributions which Translation of Currencies had been disbursed or convered inlo other currencies were translated at marts rates of exchange on dates ol disbursement or conversion. Sub- IDA7s tinanciat statements ae exressed in terms of U.S. dollars solely tar scriptions and conmributions receivable are translated at market rates ot te purpose ot summarizing IDA's financial position and the results of its exchange at the end ot the accounting pedod. operations for the covenience &f its members and oter interested parties. IDA: IDA is an international organization which conduts its operations in Development Credits the currencies ot all of its myenbers. Assets ano liabilities are Iranslated at market rates of exchange at the end ol the accounting period. Subscriptions AJI development credits are miade to number govemments cr to the goa- and contributions are Iranslated in the manner descrbed below. hnconie and emment al a territory oa a member (except tor developmren credits which expenses aretinslateat te maret rates ot exchane atte dates on whiich have been made to regional development banks for the beneritmn dm bers lwyare recognized r at anaverage ol he market ratesot exchange inetect or tenitories at numbers oa IDA). It is the policy at IDA to place in non- during each month. Translation adjusmrents relating to the tevaluation of accrual status all development credits made to a member govnmenl or to development credits denorminated in Special Drawing Rights (SIRs) are thegovemmento a ternrory a memberit principat or chrges with respect charged or credited to Cumulative translation adjustnenl on developmenl to anysuch devopment crefit are overdue by more than siK months, unless credits. Other translation adjustments are charged or credited to the Accu- IDA mangement determies thalt the overdue amount vwill be colleMted in the mutated surplus. iuediate futre. In additi I loanrs by the lORD to a nmember gowemment Special Fund: Assets at the Special Fund are translated at rmaret rates are placed in nonaccrual status all devopmenT credits to that member of exchange at the end at tile period. Contributions are translated in the government will also be placed in nonaccual status by IDA. On the date a manner described below. Income is translated at market rates at exchange member s development credits are placed in nonacenal status. charges that on dates of remCgnition of inrme. Translation adjustments are charged or had been accrued on devlopment credits outstanding to the member which credited to the Accumulated surplus. rmained unpaid are deducted Irm the income at the current period. Charges on nonaccruing development credits are included in income only to the extent tha payments have alally been received by IDA On the date Valuation of Subscriptions and Contributions a member pays in lull all overdue amounts the members credits emerge trom nonacorual status. its eligibility tar new credits is restored. and all IDA: The subscriptions and contributions provided through t third m- overduecharges (including thoseom prior years)arerecognizedasincame plenishmnent are expressed in tes of "U.S dollars of the weight and in the current periDd. fineness in eilect on January 1. 1960" (1960 dollars). Following the abo- lition al gold as a common denominator of the monetary system and the In projecting the rtepayments at principal which would be available tar new repea of ttie provision of the U.S. law defining the par value of the U.S. commitments, IDA takes into consideration any collectibility risks that may dollar in terms of gold. the pm-existing basis tar translating 1960 dollars exist in principal remeable tom development credits. No provision has into current doltars or any oiher currency disappeared The Eecutive Di- been established tar credit losses. Should losses occur arising from pin- rectors ot IDA have decided, until such firne as the relevant provisions of the cipal receivable trom develooment credits. they would be charged against Articles of Agreement are amended, that the words "U.S. dollars at the IDAKs Development Resources. To dat IDA has not suffered any losses on weight and fineness in effet on January,, 1960" in Artide Il Section 2(b) receivables trom development credits, nor are any losses anticipated. of the Articles of Agreement of IDA are interpreted to mean the SDR intro- duced by the tntemational Monetary Fund as the SOB was valued in terms IDA: The repayment obligations t IDA's development credits tunded tram df U.S. dollars immediately beore the introduction of the basket fthod of resources through the ith t plenishmenl are expressed in dte development vatuing the SDR on July 1, 1974. such value being equal to $1.20635 for credit agments in lerms of 1960 dollars. In June 1957, the eculive one SDR (the 1974 SDR. and have also decided to apply the sire sUndard Directors decided iD vatue those development credits at th rate ot $1.2063 ot value to amnounts expressed in 1961 dollars in the relevan resolutions of per 1960 dollar on a pemanent basis. Developmen credits funded 1rmm the Board at Govremors. reSourCDS ptovided under the sixthl replenishmpent adl thereafter are de- nominated in SDRs the priciat amounts disbursed under such develop- The subscriptions and contributions provided through the third replenish- ment credits are to be repaid in currency amounis currently equivalent lto he ment are expressed on the basis of the 1974 SDR. Prior to Ihe decision of SORs disbursed. (Cficolued) 206 IDA and Special Fund Financial Statements Notes to Financial Statements (continueco Specil Fund: Spedal Fund development aodits are denominaled In $317 nilllion (5125 million-June 30, 1993). Al June 30, 1994, lDA's SORs. The principal amfounis disbursed under such development credils are exposure lo credll loss on covered forwards due to polenlial nonpirlormance to be repaid In currency amounts currently equivlent to the SDAs disbursed by counlerpanies was $6 million (nil-June 30. 1993). Special Fund development credits are made on Ihe same terms as regular Oplions are conlracts thal allow Ihe holder ot the oplion lo purchase or sell IDA developnenl credils except thal the proceeds ol Special Fund devel- a financial instrument at a specilled price and wllhin a specilled period ol opment credits may be used only lo ltnance expendilures for gDads or lime Irom Ihe seller or to Ihe purchaser al Ihe oplion. As a seller ol options, services Iron (a) Part 11 members ol IDA. lb) Pan I members contributing IDA receives a premium at Ihe oulsel and then bhars Ihe risk ol an unla- lo the Special Fund. and (c) Part I members contributing to Ihe regular vorable change in the price of the tinancial instrumeni underlying he oplion. resources ol IDA Ihrough IDA's FY54 Account who have notitied IDA Ihal - The total conlract value ol oplions sold at June 30. 1994 was $216 million such contributions are to be trealed hi the same manner as contribulions lo ($29 million-June 30, 1993). the Special Furnd for purposes DI arry klure adjusUmrnl of the voting rights ot the members d ItAr Short sales ame sales o1 securities not held in IDKs porttolio at the lime oa Ihe sale. IDA must puchase the secuity al a later date and beers Ite risk that the markel value ol the security will move adversely between the lime Investme0nts ol Ihe sale and Ihe time Ihe securily must be delivered. The lotal contract IDA attis Hs inlmel seumites l owet alue Bot maizedand amount o1 short sales at June 30. 1994 was $13 million ($7 million-june nrealized cains anvd loses ase includerisd mak valune. th ra lized and se301993). This amount is included in Net payable on invesment seuty unreaized ains nd lsses re inludedIn icome ran ivestmntsanisactions. Reclassifications Note B-Cash and Investments Not Immediately Certin reclassifications of the prior years inlormalion have been made lo Available for Disbursement conlorm to the current years presentabon. Under the Articles ol Agreement aid the arrangements goveming replen Note A-investments ishments. IDA must take appropriate steps to ensure that. over a reasonable period oa fime. Ihe resources provided by donors lor lending by IDA are ued A sumrmaty ol the currercy composition of the Investments at June 30. 1994 on an approximately pro rata basis. Donors sometimes cornribute resources and June 30, 1993 is as tollows substanially ahead of their pro rala share. Unless otherwise agreed. IDA does not disburse Ihese funds ahead oa donors pro rala shares Cash and In millions ol U5.-dollars equivalent investments not immediately available tar disbursement represents the dit- ference between the amount contributed and the amount available lor dis- IDA Special Fund bursements on a pro rate basis. Currency 1994 1993 1994 1993 Note C-Member Subscriptions and Belgian francs ...... S 61 S 60 S 14 $ 12 Contributions Canadian dottars .......... - 43 73 69 eRestricted Assets and Subscriptions: For the purposes at its fi- Danish krener ...... . - 13 9 narcial resources. the membership of IDA is divided into two categories- (1) Deutsche mark ..... 1.342 1.154 - - Part I members, which make payments ot subscriptions and contributions French francs .20.... ao 197 37 45 provided to IDA in convertible currencies which may Ie Ieely used or Japanese yen .... 327 305 -- - exchanged by IDA in its operations ano ,2) most Part It members, which Itian lire . 8...... 80 5 91 80 make payments of ten percent of their initial subscriptions in treely con- Netherlands guilders . . 56 145 - - vertible currencires and the remaining ninety percent o1 their initial sub- Pounds sterling 151 155 - - scriptians. and ali additional subscriplions and contributions in their own currencies or in freely convertible currencies. Certin Part II members pr- Swedish kmnor . . 67 75 44 36 vide a portion oh their subscriptons and contributions in the same manner United Sbles dollars . 683 744 - - as mentioned in (1) above. IONs Articles at Agreement and subsequent Total .......... 52.997 52.994 S272 $51 repterishrneit agremnts provide that the currenry at any Part tl rnmber = - - - paidin byilmaynottbeusedby IDAlorprojesfitiancedbyIDAanlocated outside the terrilories ot the member except by agoreement between INe As part of its overall portfolio managanent strategy. IDA is party to financial memsber ane IDAo instruments with oft-balance sheel risk including ulures, covered forwardr contracts. options. and short sales. Fuluresare contracts or dclayed delivery Maintenance of Vatue: Article IV, Section 2(a) and (nl ot IDA's Artic es of securities or money marks instruments in which the seller agrees to make o Agreement pmvides for maintenance-af-value payments on account oh the delivffy al a specified itue date of a specilied insirument al a specilied local currenry portion of the initial subscription whenever the par value of price or yield. Al June 30. 1994 the total contact value of lutures contracts the nmber's currency or its foreign exchange value has, in the opinion of was $1,161 million (5211 million-June 30. 1993) and IDA's expsure to IDA, depreciated or appreciated to a significant erdent vithin the members' credit loss on futures contracts due to potential nonperormanrce of coun- teritories. so Ing as and to the extent that such currency shall not have terparties was S1 million (S7 millIon_June 30. 1993). been ini ially disbursed or exchanged tar lhe currecy ot another member. The proisions of Article IV. Section 2(a) and (b) have by agreerier't been Covered forwards are agreements in which cash in one cunency isconverted extended to cover additional subscriptions and contributions of IDA Ihrough into ditterent curency and. simultaneously. a torward exchange agreement the third replenishment but are not applicable to those ol the fourth and is executed providinj for a luture exchange of the two currencies in order subseent replenishments to recover the currency converted. Al June 30. 1994. IDA had gross sh- ceivables rom coveed lorward agreements ofS323 million (S119 million- The Executive Directors decided on June 3D. 1987. that sehiements aI June 30. 1993) and gross payables Ironm covered forward agreements of maintenance-of-value obligations, which woutd result from Ihe iesolulion of Notes to Financial Statements 207 Ihe valuation Issue on the basis DI the 1974 SDR, would be detlrred unlil Note D-Transfers from the Intemational Bank the Executive Directors decide lo resure such selilements. for Reconstruction and Development (IBRD) Tenth Replenishment: On March 31, 1993. the Board ci Govemonors or:TeIE' or a o asapoe iasa oIAttln IDA adopted a resolution authorizng the tenth replenIshment ot IDA's re- ID:TelDsBor01GvrrsapvdtantstoDAoaIg sources. The tlnth replunish>nt prvIdes IDA with resoue lto lund credlis $3,10 mlIllon through Jun 30d,1993. 01 the tIal amount, SE millon has comnmittd during the period July 1. 1993 to June 30. 1996. The amount ol been disbursed tar gaunts tor agricultural reserch, the conrolr or onchocer- the replenishmenl ricluding supplemntary contribulions proyided by car- clasis, and othrdevelopmrial acilvilltes On Seplember 30, 1993, the lain members, Is equIvalent to SDR 12.000 mIllion (at the exdiange rates iBRD's Board ai Governors approved a transfer of $140 mlilon to IDA by deltrmined pursuant toa formula agreed by IDA and Lontribuling donors). vaY of grant. On Sember 24. 19. as amended on November It. 1993. The tenth replenishment becMMe uflectlve on December 17, 19931 the IB3RD's BoardSo Governors autihorized a transter 0l an amount equivalent to $325 mlilion by way dl a grant to IDA when the tenh replenishmentwould Subscriptlons and Contributions Not Yet Due: Al June 30, 1994. become efteclive, which occurred on December 17, 1993. unresircted subscriplions and contribullons not yet due wDii become due as tallows: Note E-Development Credits In mililons Special Fund developument credits disbursed and ouLstanding at 5457 mil- Period June 30. 1994 lion al June 3D. 1994 (3431 million-June 30, 1993) are Included in the -Statemets of Development Resources ol IDA sice principal repayments on July 1. 1994 lhrough June 30, 1995 S 5.362 these development credits will become pad ol the geial resources of IDA, July 1. 1995 through June 30, 1996 .5.366 unless otherwise provided In a decIsIon ot IDA's Executive Direclors to Thereater .... . . ...... 115 terminate admInistration dl the Special Fund by IDA Total .... ,...... si0.843 At June 30, 1994, principal Installm4ts ol $0.6 million and dcarges ol $0.5 million payable to IDA on developnmqt credits were overdue by more than three monihs. Al June 30. 1994. Ihe aggregate principal amounts outstand- Contribudons to Spacial Fund: Member conlribulions to the Special iog on all developmenl credits to any bortewer, olher Ihan Ihose referred to Fund ltoting S596 millkn at June 30. 1U. I(596 million-June 30. 1993) In the tollowing paragraph, with any deveopment credit overdue by moe are retlected as Member subscriptions and contributions in Ihe Statemeis han hree months vs 5474 millin of Development Resources. Al June 30. 1994, the Special Fund total is reflected net of $389 million (3378 mrilion-une 30. 1993). which rep- Al June 30, 1994. the devopmtent credits made to or guaranleed by etain resents deWvopment credit disbursements Ihal are repayable o and Included member countrles vilh an aggregate prlncIpal balance outstanding ol $3,533 in Member subscriptions and mnlribulions o1 IDA. million ($1.046 million-June 30, 1993). ol which S42 mililon ($18 miliionJune 30.1993) vas overdue, were In nonaccrual status. As ol such Mernbership: On February 25.1993, Ihe IBRD-s Executive Dlrectors ddate, overdue charges In respect ol these development credits totaled $46 cided that the Socialist Federal Republic ol Yugoslavia (SFRY) had ceased million (S21 million-June 30. 1993). t these development credits had not to bea memberol the liRD and that the Republic of Bosnia dnd Herzegovna, been in nonaccrual status, Income from deveopment credits for the year the Republic of Croat the tomer Yugoslav Republic of Macedonia, the ended June 30,1994 would have been higher by $31 million (S7 mIilion- Republic of Slovenia and the Federa Republic of Yugoslavia (Serbia and June 30. 1993), which is net of charges receIed Irom such members during Monbnegro) are authorized to succeed to the membership of the SFRY in Ihe year. A summary ot mernOer counlries Wth credis at guardnlees in the lORD when certain requiremenis are met. In accordance wilh the Arlicles nonathrey al stuaus followsa of Agreementl olthe Association, on February 25.1993, the SFRY ceased lo be a member ol IDA due to the cessation of ils membership in IBRO. Three In milions of Vie live successor Republics-4he Republics ol Croatia and Slovenia and the former Yugoslav Republic of MacedonIa-have since becme members June 30, 1994 of IDA. As ot June 30. 1994, the subscription ard contributions allocated to the other successor Republics (he Republic of Bosnia and Herzegovina. and Principal the Federal Republic of Yugoslavia (Serbia and Montenegro)) are included Principal and Charges Nonaccrual under Payments on acwunt of pending membership. Borrower Outstanding Overdue Since On May 29. 1992, Switzerland became a memnber ot IDA. Before thal date Afghanistan ........ . S 75 S 3 June 1992 Switzehrand had contributed to IDA an equivalent of $51 million. As agreed Haiti ............. 342 13 Aril 1992 beween Ihe Swiss Confederation and IDA. these grant contributions were Uieria.10 April 198b converted to an IDA subscription. Further, during te cornmtnent periods n a 1 Jy9 beween Ute fourth and the ninth replenishments of e IDA resources, Somlia .......... 424 19 July 1991 Switzedland had coDinarced projects by making available to IDA borrowers Sudan ............ 1,250 17 Janury 1994 untiEd grants in the aggregale amount ot Swiss Irancs 1.055 million (his- Syrian Arab Republic . . . 44 7 April 1988 toriral U.S. dollar amount of $580 million). On July T. 19Z as agreed Zaire ............. 1.292 18 November 1993 dween the Swiss Confederalion and IDA. these grant contributions were converled to an IDA subscription and contribution vhen Switerland con- Total .$3,533 tributed a further S68 million, representing the present value of fldure rtlows of Ihe cofinancing grants if they had been made through IDA on IDA's During the fiscal year ended June 30, 1994. Congo paid off all of its arrears repayment tlers. At June 30, 1994. 5512 million (3512 millionJune 30. and tlhretore credits to ft came out ol nonaccrual status. As a result. income 1993). representing the difference between the lotal ceinancing grants of lIom credits for the fiscal year ended June 30. 1994 increased by $2 million S580 million and Ihe present value of fulure reflows o0 S68 million, have not corresponding to income that would have been accrued in previous liscal been included in the Member subscriplions and contributions in the State- years. For the fiscal year ended JJre 30. 1993, no credits came out of nrits of Development Resources. nonaccrual staus. (continued) 208 IDA and Special Fund Financial Statements Notes to Financial Statements (=ntinued) Note F-Disclosures about Fair Value of of the disbursed and outsianding balance is chargedt however, to cover the Financial Instruments casts ol administering the credits. Due to the concessional nature ot these credits. it is not meaninglul to calculate a tair value lor oulstanding credits. Investments: Since IDA carries ils invesnts at market value, the carry- ing amount represents the air value of the porSolio. These tair values are Note G0-ncome and Expenses based on quoted market prices. where avaibable It quoted narket prices are not availabWt tair values are based on quoted market prices ot comparable IDA: IDA pays a mamgermient lee to Uie IBRD representing its share t the instruments. The hair value of linanciat insiruments thal are short lerm administrative expenses incurred by thu IBRD. approxirnate their carry value. Special Fund: The service and commitment charges payable by borrow- Credits: All at IDA's credits are mnade to or guaranteed by countries that ers under Special Fund development credits are paid directly to IDA to are menbers ot IDA. These credits are made to provide concessional as- compensate it for services as atoinistrator ol the Special Fund. incorre trom sistance to low-income developing countries. While the principal arnount is inesbmentisof the Special Fund becomes patt aithe resources oa theSpecia tully repayable no interest is charged b th e borrower. A service teed 0o.75% Fund. 209 Report of Independent Accountants Price Waterhouse The Hague New York (International Firm) Beijing Tokyo Hong Kong Washington London Price Waterhouse July 27. 1994 President and Board of Governors International Development Association and the Special Fund Administered by the International Development Association In our opinion. the financial statements appearing on pages 1% through 208 of this Report present fairly. in all material respects, in terms of United States dollars. the financial position of the International Development Association and the Special Fund Administered by the International Development Association at June 30. 1994 and 1993. and the changes in their accumulated surplus and their cash flows for the years then ended in confornity with generally accepted accounting principles in the United States and with International Ac- counting Standards. These financial statements are the responsibility of management: our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards. including International Standards on Auditing, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining. on a test basis. evidence supporting the amounts and disclosures in the financial statements. assessing the accounting principles used and significant estimates made by management. and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above- PAC UaPt ( _ F~ 211 IBRD/IDA Appendices 1 Govemors and Altemates of the World Bank 212 2 Executive Directors and Altemates of the World Bank and Their Voting Power 216 3 Officers and Department Directors of the World Bank 218 4 Offices of the World Bank 221 5 IBRD and IDA Cumulative Lending Operations, by Major Purpose and Region 228 6 IBRD and IDA Cumulative Lending Operations, by Borrower or Guarantor 230 7 Statement of IBRD Loans Approved during Fiscal Year 1994 234 8 Statement of IDA Credits Approved during Fiscal Year 1994 240 9 Current IBRD, IDA, and Blend Borrowers 245 10 Development Committee Communiquds, Fiscal Year 1994 246 212 IBrD/"DA Appendices Governors and Aiternates Appendix I of the World Bank June 30, 1994 Member Governor Allerrate Mghanistan .... ...... Abdul KarWm Kherili ............, Mothmmad Ehia an Albania .......... Piro Dishin ............. Adrian Xheri Algeria ........... Ahmed Benbilour ................. In Bracherni Angola ............. Jose Pcdro de MorAs.& Sebasio Bastos Lamdor Antigua and Babud .......... Molwyn Joseph .................... Ludolph Bmwn Agt .......... Domingo Felipe Cavalo .............. Rque Benjamin Fernndez Anmenia ........................ Hrant A. Bagratian ................... Aren Yeghizarian Ausaria .... alph Willis ...................... Gordon Bilney Austria .. Ferdinand Ladm . Hans Dieta Sches Azertai.an. ....... Gaib. A .gaye ..... ...V..Uagif K i AldAnedov Baharrus The ......... . Hubert A. Igrham ........... Ltr E Smith Bar ......... l. rlbraim Abdul Katim.i . hashed AL Al-Mari Bangldesh .-----------------------M. Sailur Rahman ................ Muha adi Lutfullahil MaIid Barbadoe ... L Eraine Sand'dord t.-------------- Gerge Reid Belat .. .. ..N. N.NUW Filippoich Ruras .... Nikolai K Lisai Belgium ........ Phiippe Mayadt /bAlns Verplasese Beri-e... ... ... . Dea 0. Barrow ........ .... Joseph D. Waight Bin .------.....-----..--.--. Robert Tagnon . ....... Rigobet Ledikpo Bhutan Dorli Tshering Yeshey imba Broliia .......................... Fernndo Alvaro Cossio . ---------- G ab rrCand de Meczdo Bots .... ...... Feshs a Mog ................... Goldie John Seoniam Brai .l....... ................... Rubens Ricupero ....... ...... Pedro Sarnpio Malan Bulgarie' ...Sta..n M.. S and Mileti Mkadenov Burkina Faso .........hi..... h rin Diabre .------------------- T- Celestin liendeoo Burundi ..... Tayi Salvaw. --. Nestor Ntungwan Camtodia ... Sam Rainsy .----- Chain Prasidn Canwoon. ...... Augtin Fredic Kodock .--------- Esther Dang Beribi Caada ... ul ....................... Huguette Labelle Cape Verde .Jose Tents Veiga ..........M..... Aeandre Yieira Fhntes Central Afican Republic .Thierry Bingaba - .. Gregoire Zowaye Chad .t... . In Ouner MaN anut Saleh ........... Hassan Adoum Bakhit Chile ...... ......... .... Eduardo Aninat .......... ..... Jose Pablo Arellano China .----------------------Uu Zhangli... irn Renqing Colombia ... Rudolf Hoimmes .................... hndo Montenegro Cmmras . .............. Assouman Aboudou -------------.- CaUbane Abdalakh Halk Congo .. .................... Clement Meuarrba .---------- Arnoine Banvidi Costa Rica --------------- Fernando Hern Acosta .----------- Leonardo Gamier Rfnolo COle Er'voire ----------.-N---ia- NliGe ra . .................. Victor Kouame Cmatia ... Zoran Jasic ................. Josip Kuris Cyprus ............... Ptfdos Economides ... ....i.. chael Emtdits Czech Republic .... Wan Kocamik.Jan .Vit Denmark .................. . Helle Degn .. Ole Loema Paulsen Ojibout ... Amed Aden Yoissoutf .Ibrhir. m assim Chehem Dominica ......... Mary Eugenia Chades ............... Gilbert Williams Dominican Republic .......... .. Maria Rad Vitlini .... .... fligio J. Bisano B. Ecuador ....a..........r.......... O Robain Gonaga ............ Modesto Corea Ebypt Arab Rep. of ......... .' Kual Ahmed El-Gmoury ............ Youset Bwtos Ghali El Salvador ......... Ramon Gonzalez Giner. Jost Roberta Orellana Milla EquatoTbl Guinea ... ..M.. Manuel-Enrique King Sorno.Felipe Hinestrosa Ika Estonia' ............. Heib Kranich ........... .......... Martin Poder Ethiopia ........... Alemayehu Daba ................... Abdulmejid Hussein Fil .......u............. Paul F. Martuei .... . - Rigarnoto Taito Finland .......................... liro Viiarmen .......... .....Ton Karcamnnierni Appendkx 1 213 Mernber Governor Alternate Fr a n c e .......... Jean-Claude Tri het .................. ristian Nouer Gabon .......... Andre Dieudonne Bere ..... . Richard Onuit Gambia. The ....... Baay B.a D a b o ................... Alieu M. Ngum Georgia ....... David lakobidze .... . .......a Tengz Geleishnii G e rany ....... Cad-Dieter Spranger G.........e........ t Haller Ghana ......K................. Kesi Botchusy ........ Kwesi Amissah-Alur Greece .............. Yanrinos Papmntoniou .......... George Romeos G r eda ......................... NiChDIas atal w aitee ............... Noan K. Murray G uat eala ..............a.......... Ana Ordonez de Molina .............. Willy W. 2apata Sagastume G uiinea ..........n Soriba Kaba ...................... KerulalaYnsarne GuneaBisu ...........nea Filinto Barns sso...... su Sanha G u y ana .......... Asgarp AI .............. MihalSheerCtan Haifi .......*.... Marie ichele Rey ......... Jean-Made Chersal Honduras ...*.. Juan Fe r re r a Hu................... Hugo Noe Pino H u njagy ...... ....... Ivan Szabo .... ....... ... Almos Koacs Iceland . Sighvatur Bjorgwinsson .............. Fridnik Sophusson .ndia ........................... Manmohan Singh .............. MoSak Singh Ahiuwalia Indooes . ........... Marie Mulnad .............. Boediono Iran, Islamic ReV. of .............. Mortm o ia - Mehdi Navab Mollagh Iraq ...... Tari TM. Al Tuhi ............ Hashim Ari Obaid Ireland ...... BertieAhem ............. Pa Mullake I sa e l ... Jmb A. Frenkel ................... Aawn Fogef ItlY . Antonio Fazio Mario Draghi Jar nuliCal Omar D a v.es Morie Herpriques Ja pa. HirohisaFuji1i Yasushi ieno Jordan .. Listarm K h at-b Marwan Aud Kaza ............. Ereshbay Zh Derbiv .............. Mars Udrnbayev Kerya ............ W- Musalia Mudadi ............. Benjarmin Kipkoech Klpkulb K i r ibadi .......................... iaona luti ........IS.......S Noua Tetinaniku Koa,a Republic of ........ Jae-Hyong Hong . .............. Myung-Ho Kim Kuaait .......................... Nasser Abdulah Al-HRouan .......B... ader MesIWh AI-Humaidhi Kyrgyz Republic ....... . ..Ka... K am hbkrov Sha ................ Asr L Sarygulov Lao People's Democratic Repubric ...... Khamay Souphanouvng . .Pany Yatholou Labia . ............. Ojars Kehris . .Uldis Osis Lebanon . .............Fd A.B. Siniora - El-Fd Chalak Lesotho . ............. Selornmesi Baholo .. .E Mate.L ns Liberia . ............. Amelia A. Ward . .Wilson K Tarpeh LUbya --.. . ....---Mahamed A. Bait El Mal .. Bashir Ali Khalat Lithuni . . Julius Vesdka . .Eduardas Vilkelis Lwembourg . . Jean-Claude Juncker. .Yves Mersch Macedonia. former Yugoslav Republic of - . Dzevdet Hariredni . .Hari Kostov Madaga .. ............. Tovnahry Rabesitonta ..Raljona Anduiai a Malawi . ............. Louis Joseph Chimango . .Charles D. Nthenda Malaysia . . Anwr Ibrahim . . Moh. Sheriff Kassirn Maidives . ..............FaMla Jame . . Mohaned Ahred Didi Mali ....................... Soumaila Cisse .............. Issaga Denbele Mai ........................ John Dalli ....... ....... Albert A Allard Marshall Islands ................... Ruben R. Zackhias .............. Michel Konelios Mauritania ....................... Tald Ould Sidi ..... .. Mohed Lenine Ould Deidah Maumnus ....................... Paradmah s Nababsing .............. Dharam Du Manrda Mexico ....................... Pedro Aspe Amella .............. Guillerno Orfiz Wcronesia Federated Stles of ....... Alysius J. Tuulh .............. Asterio Takesy fanuW) 214 IBRDADA Appendkes Governors and Aiternates PAppendix I of the World Bank June 30, 1994 Member Govremor Altenate Motdoua ..... Valeriu Sergiu KIlsan ................ Dumitru Ursu Mongolia ..... Dedchigiavyn Molomzhamts .......... Datin Davaasambuu Morocco .......... M'Hammed Sagou .Omar Kabbal Mozarnbique ..... Eneas da Conceiao Comiche .Adriano Alonso Maleiane Myannr ..... Win Tin ................ Thein ALing Lwin Namibiea ..e.... . de.ha Ngairue .......... Godhey Gaoseb Nepal . ...... Mahesh Aday. ....... .......... Tllu r Nath Pant Neherlands ...Wirm Kok .J.P. Prank New Zealand ..... Murray Hom .John Whitehead Nicaragua .. ........ Bniio Pereira Alegria .......... Jose Evenor Taboada Arna Niger .Abdallah Boureima ................. Kane Aichatou Boulama Nigei ia .Ka..lu Idilm Kale ..... Gidado ISkis N 96z I ; a l u Idih It..u ......... .............. 0dolri Norway ...... ...... Sgbioem Johnsen ......... Kari Nordheim-Larsen Oman ..O.a. Ots Abdul-Munirn Al-Zawawi .......... Mohammed Bin Musa Al Yousel Pakstan.. VA Jaarey ...................... Aab Ahamd Khan Panama ......... Delia Cardenas ......... ... Luis H. Moreno, Jr. Papua New Guinea ........... ... Mask langalio .Gera Aopi Paraguay ........... Crispiniano Sandoval ................ Julio Gonzalez Ugarte Peru .... Jorge Cant Dicknnn .... . ...... Altedo Jarilie Awapara Philippines .........R....... Rrberto F. de Ocampo .Gabriel C. Singson Poland ............K...... . Hanma Gmniewjz-Waltz . IWtold Kazinsid Pworgal . Eduardo de Almeida Caroga. F. Estves de Carvaiho Dliat . Mohammed bin Khallia A-Thmni . Abdullah Khalid Al-Attiyh Romaritraa .... .. .... . Florin Ge .rgesai.. .... Vladimir Sure Russian Federain .. Aleksandr N. Shokhin ............ Vitor V. Gerashchenko Rwanda .. Marc Rugenera . . Feilcien Ntahandi Sa lats and Nevis .. ........... Kenedy A. Simmonds ............... William V. Herbert St Lucia ........ ................ John GM Compt .......... Zenith mes aL Vircet and the Grenadines ......... James F. Mitchell . .................. Dwight Venner SaO Tone and Prindpe .............. Arlindo Alamo de Carvalho .. ......... Adelina Castelo David Saudi Arabia .............. .... Mohamrnad Abalil ............... Hamad Al-Sari Senegal .-------------------------Papa Ousne Sakho ... ....... Awa Thiongane Seychelles' ....................... Dani elle de SL Jorre .E..........m. Emanuel Fure Sierra Leone . John A. Karim ...... .............. NahIaniel S.. Wellington Singapore .............. Richard Hu Tsu Tau ........ Ngiam Tong Dow Slovak Republic ....... Brigita Schmgnerova ............... Vladimir Maser Slovfnia .. Mitia Gaspar ........... Bozo Jasovic Solomon Ilands .................. Andrew G.H Nord ....... Manasseh Sogavare Somalia ......................... (vaouX ........................ (vacan) South Africa .....h........... 0ristian Lodewyk Stais .............. Andries Benjamin La Grange Spain ... Pedro Solbes Mira ...... Allredo Pastor Bodner Sri Lanka ...... D.B. WVjtunga .. PasFakalingam Sudan ......... Mohamed lar El Zubair ........... A Mhned Hassan Suriname' .. . Humphrey S. Hildenberg .......... Stanley B. Ramsaran Swaziland ... ............k... T e. .aaku .Musa 0D Faudze Sweden ............. Anne Wibble ............- Alf Svensson Switzerland ............ Jean-Psal Delamnuraz .... Flaso Coffi Syrian Amab Republic .......... Mohammed Khaled Al-Mahayni. Adan Al-SaRi Talikistan .......... Kayum K Kavmidinov .Normiat 1. lounoussov Tanzania ......... ............. Horace Kolimba .................... Peter J. Ngumbullu Appendix 1 215 Member Governor Altenate Thailand .......... Tarrin Nimmanahaeminda ............ Anan Thammano Togo .......... Yandja Yenichabre ................. Kwassi Klutse Tonga .......... James Cecil Cocker ................ vacant) Trinidad and Tobago .......... Wendell Mottley ............. . T. Ainsworth Harewoad Tunisia .......... Mohamed Ghannouchi ............. Toulik Baccar Turkey ...........Osnan Birsen ............ Ayfer Yilmaz Turkmenistanr .... ...... Hudalberdy A. Orzov ............ Annadurdy Khadjlev Uganda .......... Jehoash Mayanja-Niangi ............. Enmnu el T. MuLebile Ukraine .. Viktor Yushclenko .Michael 0. Goncharuk United Arab Emirates ....... ... Hamidan bin Rashid Al-Makioum ....... Ahmed Humald AI-Tayer United lKngdom ..... ..... Kenneth Clarke ................. Baroness haker of Walbsey United Stats .... ...... Lloyd Mt Bentsen ................. Joan E Spero Uniguy ........... Ignacio de Posadas ................. Javier de Haedo Uzbeldstan ......... Bakhtiyar S. Hamidv ............... Vyasheslav A. Gotyshew Vanmua ......... Willie Jimmy ........... ..... Antoine Pikoure Veneue .a. .......... Julio Sosa Rodriguez ................ Bo del BulWo Viet Nam ... ...... Cao Sy Kiem ................ Le Van Chau Westen Samoa .... ..... Tuilaepa S. Mialielegaoi .............. Epa Tuioti Yemenu Republic oa ..... .... Abdul Kadm Al-Eryani ............... Anwar Rizq AI-iarazi Zaire ..C....... elestin Tshibwabwa Kama ......... Kakese Mulume-Nda-Mumi Zambia ......... Ronald Dasn Slt Pen .......... James K Mtonga Zimbabwe ......... B.T.G. Chidrero ................ Leonard Ladislas Tsumba a. Not a member ofl he IDA. 216 IBRDtlDA Appendices Excecutive Directors and Alternates Appendix 2 of the World Bank and Their Voting Power June 30, 1994 113RD _ __OA Tla x of Tda %t d Exuve direct Alenat CSang vae of voaes toa votes tow Appaoined Jan Piercy .............(vacn ..t..... Lhiited Slates ............... 249.143 17.42 1.490.101 15.67 Yasuykib Kawahara ......... Kiyoshi Kodurt ........ Japan . 94.02U G.58 988.143 1039 Fritz Fischer ......... Hald Rehm ........... Germany. 7.649 .08 658,521 6.9 Marc-Antoine Aufxenn ......O Jrme Has .Fance .69.647 4.87 390,814 4.11 Hw ari .... DavidSb o ..........St United linrgdom .69.647 4.87 495,81 522 Elected Walter Rill .... Nurcan Akturk .. Austia. Belarus Belgium. (Astia) (Tukey) Czech Republic, Hungary, 1khstaL Lweu gm, Slovak Republi. Tudrey ....... 71.048 4.97 391,440 4.12 Eveline Herfes .. .. lleana Ilonescu- Armenia. Bulgara' Cyprus; (Netherlands) (Ramania) Georgi IsraeL Moldova, Neterlands, Romania UkIue 68.189 4.77 277.873 2.9 Robert RB. de Cotret ......... Hubert Dean .. ......... Antigua and BarbuWdaa The (Canada) (the Bahamas) Bahara' Barbados.' Beliz Canada. Dominica. Gnrada. Guyarn. Ibrend Jamaica. 5 kitts and rti, SL Lucia. SL Vincent and the Grenadines 61.511 4.30 406.908 428 Angel Tonres ... .. Gabriel Castellanos ... Costa Rca. El Salvador (Spain) (Guatemala) GuatWlal Handuras. Mexico Nicuagua. Panam. Spain, Veneaela ............5.... 5848 4.12 201D523 212 Birnal JaIan . MA Syed .- . Bangladesh Bhutan, India, (India) (Bangladesh) Sri L ak.. 54945 3.84 412999 4.34 Ero Grilli ... Helena Cordeiro . .---- Albania, Greece, laly. Mafia.' (Itly) (Portugal Portugal .54.354 3.80 334207 3.51 Jorunn Maehlum' .......... Helga Jonsdotfir ........ Denmark Estonia' Finland, (Norway) (Iceland) kelnd. Latia. Lithuania' Nonay, Sweden 49,166 3.44 470,159 4.94 Mohtaed Benhcdrie ........ Abdul Karim Lodhi ... Alfwnstan. Algeria. Glana. (Algeria) (Pakistn) Iran (Islamic Republicof) Morocco, Pakistan. Tunisi . .... 49693 3.41 213,196 2.24 Marcus Caramuw de Paiva .... arcea Caragena ... Brazil. Colombia, Dominican (Brazil) (Ecuador) Republic. Ecuador. Haii, Philippiines, Suriname' Trinidad and Tobago .......... 46.93 3.26 276.194 2.90 Wang Uansheng .......... Bng Shengman . .----- Chia ........ 45.049 115 193370 2.03 (China) (China) Ibrahim A. Al-Assaf ......... Ibrahim Mh AI-Molfeh .... Saudi Arabia .45,045 115 330.314 34T (Saudi Arabia) (Saudi Arabia) John H. Cosgrove ........ Bang-Hee Won ......... Australia, Kiribati, Korea (Australia) (Republic of Korea) (Republic of. Marshall Islands. Mongolia New Zeaand. Papua New Guinea. Solomon Isands, Vanuatu, Western Snma 43.606 105 254,870 2.68 JeanDaniel Gerber .......... Jan Sulmic- i.... z. kerbaijane' Kyrgyz Republicr (Swizerland) (Poland) Poland Switzedand. Turtienstan.' Uzbeldstan ...... 42.484 2.97 305.631 3.21 AppendIx 2 217 IORD IDA Totl Sod TOW t o E e director Alternate Casting voles at votes tkm aS tow Faist A Al-Khaled ........ Mohwaed W t ...... Datuamia Egypt (Aflb Republic (Kuwait) (Arab Republic of Egypt) ofl), Jord Kuwa Lebanon. Libya. Maldives 0man, Omatar Synan Arab Republic, United Arab Enires, Yemen (Republic of) 42047 2.94 237.357 2.50 Aris Oht run.... . Jamnes Hutagalung ....... F Indonesia, Lao Peoples (Malasia) (Indonesia) Democratic Republic, Malaysia, Myanmar, Nepal, Sing r Thailand, Tonga. Viet Nan ....... 37A494 2.62 276.566 2.91 O.K Matan-a . . Hairy MI. Mapondo . Angula. Botsw;an Burundl (Batswcn) (Malawi) Ethiopa, The Gambia, Guinea. Kena, Lesot. Liberia. M W.i, Mozantique, Namibia? Nigeria, Seychelles Serra Leon Sudan, Swaziand Tanzania. Uganda. Zambia, Zin b ............ 32,022 224 404,692 4.2 Andrei Ougrav . Aexnder NI Doumnov ... . Russian Fed ation ............ 25,390 1.78 28202 .30 LRussim Fedaion) .Rssian Federuion) Nicols a .........o - . Julia Nogues ........... ArgWeina, Bolima, Chile, (Chile) (Argetina) Parauay. Peru, Urugua ........ 24.745 1.73 176246 185 Jean-Pierre Le Bouder ...... AlI Bourhane.--. Benin, Burk Faso, Cameror, (Cenral Afriman (Comores) Cape Verde, Cetral African Republic) Repubrc, Chad Caom, Congo, C(le dIvoire, Dj-ibouti Eqial Gukn, Gabon. Guinea-Wet, Ua~acr, Mali, Mauritania. Mauritius, Niger, wanda, Sac Torrt and Prindpe, Senegal Togo, Zaire .................. 23,537 1.65 293,488 3.09 In addition to the eecutive directors and altes shown in the foregoing list fe following alo served alter June 30.1993: Execulive director End of pedod of sane Alterne director End of period of srvice Boris G. Fedrov ........ October 30, 1993 Ahned M. Al-Ghannam ...... Decamter 28, 1993 (Rluian Federion) (Saudi Arabia Jean-ierre Landau. .-..-.-August 3,1993 Fernando S. Cameir .Sepember 2,1993 (France) (Portgal) Pedro Matan ............... October 30,1993 MWak M. Collins, Jr .......... December 3,1993 (Bril) (Uted Slates) David Peretz .......... .. Febray 18,1994 Arshad Farooq .March 22 1994 (UUnited Kingdom) (Pakistn) Frank Pater ................ August 19, 1993 (Cmada) Brrmrd Snoy ............ Febnrary 28.1994 (Belgium) Nmt Cambodei (464 votes in IBRD and 71.26 voles in IDA). Iraq (3.058 vats in lRD and 9.407 votes in IDA). Sond (02 mvles bi tBR1 and lOSOS votes in IDA) and South Africa (12712 aesin l8RD and 29.813 votes in IDA) did not partiipat in te 1992 Regular Secdaon of Benive Diflt Coalia (1=537 votes ki IBRD and 28.087 votes in IA). fanner Yugasv Rlepublic a Madonia (490 vs in 1iR1D and 15.759 aes in IDA). Fedeated States of Mtrnesia (729 votes in ItRO and 18,424 tes in IDA), Sovenia 0.511 vot in IBRD and 18.956 as in IDA) ard Taiilstan (1.310 voes in IBRO and 20.r vaes in IDA) beame rbrs arer a efecioin. a. Memnber of 1l WARD on. b. To be st by Rintr ra (Japan) deective July 1.1994. C To be sieeded by RUlt tby (Adln) eltive AUgst 21994. 218 IBERDDAA dloes Officers and Department Directors Appendix 3 of the World Bank June30, 1994 President. ........................................................... wis T. Preston Mamging Direct ......................................................... Atla Karaosnanoglu Managing Director ................................S.........................' Swn Sandstm Managing Director ......................................................... est Sten Vice Presiden Ala ......A.............................. Edvward V. Jaycox Vice President Colinrncing and ncial Adisory. ........................... Koji Kashiwaya Vice Prsident and Controller . .................................................. Stephen D. Ecles Vice Presidnt and Chief Economist Development Economics ........ ................... Micet Bruro Vice Presiden East Asia and Pacific ................... Gauam & Kaii Vie Presidet Environmentally Sustainable Developent ........ ...................... Ismail M. Serageldin Vice President Eurompe and Central Asia .............. .............................. Wilfried P. Thulwiz Ve President Finance and Privae Sedor Devdopment ............................... ea-Franvos Rischard Vice President Fnancial Policy and Risk Manaement ........ ........................ Johannes F. ULn Vice President Hur Resourc Developmet and Operafions Porly .............Aree....... Aeme 1 Choksi VWe President Latin Ameica and Caribbean ........... ............................ S. Javed Bum Vice President and Genval Counsel ................................_._._._...... Ibrahim F1I. Shihala VWe President Management and Personnl Services ...........S...................... Shahid Husain Wce President Middle East and North Afica .... .. .......... . Caio K Koch-Weser Director-GaerL Opeations Evaluation ..............................R .....c........ n ciotto Vce President and Secretary .. ............... ........................... Tmot Thhane Vc President South Asia .............................. ..... Joseph D. Wood Vice President and Treasrer ................ .............................. Jessica P. Enhom External Affairs Director, Eernal Afairs Depart t ........................M...d................... Aber Shalkw Director. European Offmic ................... .......... Hans Wmss Legal Assstant General Counse. Administraion and GaeW Atirs ........................... Eva L Meigher Assistant General Cotfsd, Fn mce ................................................ Stephen k Silard A ant General Counsel, Operaions .....................g........................ A Rigo Secets Deputy Secety, General Operations ...................... ......................... Anold Clif Africa Regional Offtce Dinctor, Occidental and Central Africa Deairbnt Benin. Cameroon, Cental African Republic, Congo, Cole dioire Equatorial Guinea, Gabonr Guinea, Togo . OlMer Laourcade Direcor. Eastem Africa Department Eibe, Ethiopia, Kerla Somalia, Sudan, Tamania. Uganda... Francis XL Colaco Director, South-C and Indian Ocean Department Angola BuruJndi, Comoms Djibouti, Madagascar, Mauritus Rwnda, Seychles, Zaire ................................... ... AguinrSacasa Director, Western Africa Departet Ghana, bia. Nigia. Sierra Lone .................. ian Hune Director, Sabelian Deparbet Buridna Faso, Cape Vedk Chad, The Gambia Guinea-Bissau Mali, Mauritania. Niger, Sao Tooe and Prindpe, Senegal .K-------------------------- Katherine Marshall Director, Soutem Akica Depament Botwana, Lesoto. Malavui, Mozaribique, Naibiia, South Africa. Swazibnd Zambia, Zimbabwe ......... ................................... Slephen UL Denning Director, Arica Technical Depantment .....................K. Kevin M. Cleaver Asia Technical Department Director .................................................................. Harold W. Messenger East Asia and Pacifc Regional Office Director, Country Department 1: Cam-bodia, Republic of Koek Lao PDR, Malaysia. Mekong Committ Myanmar. Philippines. Thailand, Viet Nan ........ ...................... Callisto E Madavo Diretor. Country Deparment II: China, Mongolia .............. Nicholas C. Hope Director. Country Depa t ll Fiji Indonesia IGba, The Marshall Islands, Micmnesia. Papua New Guinea. Solomon Islands, Tonga, Vatu. Western Samoa ....................... Marianne Hag South Asia Regional Office Director, Country epartment 1: Bangladesh, Bhut Nepal .......... .................. Am 0. Hamillon Director, Country Depamnt It: India ...........................................e. . i Veigin Director. Coutry Department Ill Afghanistan, Maldives, Palistan, Sri Lanka ...... ........... Paul Isenman Appendix 3 219 Europe and Central Asia, Middle East and North Africa Regions Technical Department Diredor ......................................................... Anil Sood Europe and Central Asia Regional Office Directr. Country Departent I: Bulgaa, Cyprus. FYR of Macedontia, Pougal Romania, Tuky .. richdel H. VWehe DirMeor, Country Dqeatent II: Albania. Republic of Bosnia and Huizegin Cradia. Czech Republic, Hungay, Poland, Sovlak Republic, Slovenia ...................el........... 1 Dervis Director, Contry Deptentit IAzerbaijan, Kazakhtan Kyrgyz Republic, Russia, Tajilstan, Turlnfenistan, Uzbedstan ..... .............................................. Russell J. Cheuham Director. Country Deparbtent [V: Armenia, Belarus, Estonia. Georgia, Lavia, Lithuania. Moldova. Ub;ane . ........... Basil G. Kavalsky Director. Resource Mobilization and Prie.............................. Ghassan El-Rita] Middle East and North Africa Regional Office Director Coutry Depament 1: Algeria. Islamic Republic of Mran. Liba, Malta, Morocco, Tunisia .. Daniel Ritchie Director, Country Department II: Bahrain, EgypL baq, Jordan. ruamtL Lebanon, Occupied Territories, Oman. Qatar, Saud: Arabia, Syri Arab Republic, United Arab Eirates, Republic of Ym.en..................................................... am Kumar Chopra Latin America and the Caribbean Regional Ofike Diredor. County Deparnent 1: Brazil. Peru Venezuela .................. ainer B. StEcidan Director. Country Department II: Costa Rica, El Salvador, Guatemala, Honduras. MIdco Nca, Panam ........... .................. .Edilberto L Segura Director, Country Deparment lit The Baham Barbados. Berze, Bolivia, Caribbean Delopment Bank Colomnbia, Dominican Republic, Guwana. Haiu. Jamaica, OEGS M tnber States, Suriname, Trinidad and Tobago .Y.s........................ Yoshiai Abe Director. Country Departient I: Argentina, Chile, Ecuador. Paraguay, Unuguay ...... ......... Fing-Cheung Loh Director. Technil Deparment ......................... .M..G. SiRam Aiyer Cofinancing and Flnancial Advisory ServiceE Director ........................ Inder SWu Development Economics Diecor Development Paricy .................................... ............... M ak W. ird Diector. Economic Developnent Institte . . . . . .Am........ kion Golan Director, International Economics Depatent . . . . ........ Masood Ahnmed Director, Policy Research Department ........................ Lyn Squire Administator. Research Advisory Staff .................................- Sthaid Yusut (Acting) Environmentally Sustainable Development Director, Agriculture and Natural Resources Department ... Micelt. J. Petit Chief Environmental Adior to the President and Director, Environment Departnent .......... ....... Mohamed T. E-Ashry Director. Tmnsportation, Water. and Urban Development Department ........................ Louis Y. Pouliquen Execte Seretay, Cosultative Gmup On International Agricultural Reserch ...... ......... Alexmnder von der Osten Finance and Private Sector Developnmnt Director, Firncial Sector Development Department ............ ...................... Gary L Perin Director. Industry and Energy Deparmt ........................................... Richard D. Stem Director, Private Sector Deveopment Department ............... ..................... Magdi R Isknder Human Resources Development and Operatons Pol Director, Educatior and Social Policy Department ............. ................. KY. Amoako Director, Operations Policy Departent .....................J......... James W. Adams Director. Population. Health and Nutriton D epartent .......... .................J anet de Merode Director, Public Sector Management .............................. Alberto de Capitani (contiw4 220 IBRDIIDA Appendces Officers and Department Directors Appendix 3 of the World Bank (conYfnue June 30, 1994 Financial Policy and Risk Management Direclor. Resource Mobilization Departent ............. ........................... Paula Donovan Oitector. Risk Management and Financial Policy Department ........ .................... Mieko Nishimizu Treasurer's Director. Cash Management Departen ............... ............................ Wtter Peyed Director, irnancial Operations Department .............. ............................. Kenneth G. Lay Director. Invstmient Departent . ................................................ Veronique Lavorel Director. Pension Department . ................................................. Nestor V. Saniago Director, Too Oice ......... ................................................ Shinichiro Kawamriata Controllers Director. Accounting Department.Mcael Euddy Direclor, h::ounling DepaXnent ......................................................... Michxl E RuJoy~~~~~~~~~~~~~~~~~~~~~~~~~~~~~............................. ic Auditor General, Intemal Auditing Departent. ...................................... Alan D. Legg Director. Loan Department .................................. V.S. Raghavan Direclor. Planning and Budgeting Department ............. .......................... Richard B. Lynn Management and Personnet Services Director. Gneral Services Department ............................................ Pilar J. San Jose Director. Headquarters Construction Deparment ........... .......................... Ernesto E. Henriod Director Hadth Services Department ..... Bemhard H. Uese Di rector, Organization and Busi ess Praclices Department'.t[an A. Scott Director, Personnel Management Department .................................. .... Peter Karp Director, Personnel Services and Compensation Deparmt ......................EIv...... -verardo Wessels Operatons Evaluation Director, Operations Evaluation Department ........................................iHarts-Eberard Kopp Appendb 4 22 Offices of the World Bank Appendix 4 June 30, 1994 Headquarters: 1818 H Streetl N.W., Washington, D.C. 20433, U.SA New York Office Carlslon B. Boucher The World Bank Mlsslon to the Special Representative to the United Nations/New York Office United Nations 809 United Nallons Plaza Suite 900 New York, N.Y. 10017, U.S.A. European Offlice Hans Wyss The World Bank I)irector 66, avenue d'lena 75116 Paris, France London (vacant) World Bank Resident Administrative New Zealand House, 15th Floor Officer Hayrnarket London. SW1 Y4TE, England Tokyo Office Shnichmiro Kawanata The World Bank Directr Kokusai Building (Roam 916) 1-1, Marunauchli 3-chone Chiyoda-ku, Tokyo 100, Japan Reglonal Mission F. Stephen O'Brien The World Bank In Eastem Africa Chief, Resident Mission View Park Towers Monrovia Street Nairobi. Kerya (maailing address: P.O. Box 30577) Regional Mission Robert A. Calderisi The World Bank in Westem Africa Chief, Resident Mission Comer of Booker Washington and Jaques AA Streets Cocady. Abidjan 01 Cole d'lvoire (mailing address: B.P. 1850) Regional Mission Bradley 0. Babsor? The World Barik in Thailand Chief, Resident Mission 14th Roor, Tower A. Diethelm Towers 9311 Wireless Road, BangXku 10330 Thailand Regional Mission in Lars Jeurling The World Bank Latvia Chief, Resident Mission Kaliku Street, 15 Riga Latvia 1050 Baltics Regional Mission Hillar Laud The World BanklMaailmapank Satellite in Estonia Operations Oficer Kohtu 8 Tallinn EED001 Estonia Baitics Regional Mission Ramune Zabuliene The World Bank Satellite in Uthuania Operations Orcer Gedimino Avenue 11 Vilnius 2039 Lithuania Albania Kuttay Ebiri The World Bank Resident Representative Deshmoret e 4 Shkurtil No. 34 Tirana, Albania Angola Florent Agueh Bnco Mundial Resident Representaive Rua Alfredo Troni (Edifico BPC) 140 Andar CP 1331. Luanda, Angola Argentina Patricio Millan Banco Mundiat PResident Representative Piso 12 Avenida Leandro N. AJem 628-30 Buenos Aires, Argentina (continued 222 IBRD/IDA Appendlces Offices of the World Bank (confinued) Appendix 4 June 30, 1994 Bangladesh Chrhslopher Willoughbyb The World Bank Chiel, Resident Mission 3A Paribagh Dhaka 1000, Bangladesh (mailing address: G.P.O. 97) Belarus (vacanQf The World Bank Chief, Resident Mission 6A Parizansky Avenue, 5th Floor Minsk 220033 Republic ol Belarus Benin (vacant) The World Bank Resident Representative Zone Residunllelle de la Radio Cotonou, Benin (mailing address: B.P. 03-2112) Bolivia Constance A. Bernard Banco Mundial Resident Representative Edificlo BISA. Piso 9 16 de Julio 1628 La Paz, Bolivia (mailing address: Casilla 8692) Brazil Braz Menezes (Acting) Banco Mundial Resident Representative Setor Comercial Sul, Quadra 1, Blocw H Edilfclo Morro Vermelho-8 Andar Brasilia, OF 70399-900, Brazil Brazil Braz Mnezes (Acting) Banco Mundial Representative RL3 'Jlsconde de Pirala No. 351, Sala 1206, Ipanerna 22410-003 Rio de Janeiro, Rd, Brazil Brazil Tulio Barbosa Banco Mundlal, S/127 Acdng Head ol Field Otfice Edilicio SUDENE Cidade Universithria 50.738 Recite PE Brazil Bulgaria John Wilton The World Bank Resident Represenlative World Trade Center-Sofia 36 Dragan Tsankov Boulevard Sofia, Bulgaria Burkina Faso Albert 0. Osel The World Bank Resident Representative Inmeuble BICIA (3erne etage) Ouagadougou, Burkina Faso (mailing address: B.P. 622) Burunal Jacqueline R. OXrnon The World Bank Resident Representative Avenue du 18 Septernbre Bujumbura, Burundi - (mailing address: B.P. 2637) Camneroor. Joseph K Ingram The World Bank Resident Representaive Irneuble Kennedy Avenue Kennedy Yaounde, Cameroon (mailing address: B.P. 1128) Central African Republic Luclen E. Moreau Banque Mondiale Resident Representative Rue des Missions Bangui, CAR. (mailing address: B.P. 819) Chad (vacant) The World Bank Resident Representative P.O. Box 146 N'djamena, Chad Appendix 4 223 China Pieter Boltelier The World Bank Chief, Resident Mission No. 2 Fu Cheng Lu Dlaoyulal, State Guest House Building No. 5 Beijing 100830, China (mailing address P.O. Box 82 Colombia Kris3in Hallberg Banco Mundial Resident Representtive Caerem 10. No. 86-21, Piso 3 Aparlado Aerea 10229 Bogol, D.E., Colombia (mailing address: Aputado Airen 10229) Congo (vacant) Banque Mondiale Resident RepresentaiAve kInee Arc (5&me itage) Avenue Arnilcar Cabrai Brazzaville, Congo (mailing address B.P. 14536) Ecuador John Panzer Banco Mundial Resident Representative Calle Juan Leon Mma 130 y Ave. Patria Edifico Corpoartian Financiera NaciWal Eta Pris auita, Ecuador Egypt Sven Bunnester The World Bank Resident Repesnaive World Trade Ctffer 1191 Comiche El-Nil 15f Floor Cairo, Egypt Ethiopia Abhay Deshpande The World Bank Resident Representative Africa Avenue Bole Add-s Ababa, Ethiopia (mailing addess P.O. Box 5515) Ghana Ravi Kmnbur The World Bank Resident Reprsnatgve 69 Eighih Avenue Extension Northridge Residential Area Accrae Ghara (mailing address P.O. Box 7) Guinea Eduardo Locatelli Banque Mondiate Resident Repretae Immnwble de lrArdSche Face taie des Anges Conakry, Guinea (mailing address BP 1420) Guinea-Bissau Yves J. Tencalla World Bank Pesident Representative Apartado 700 1041. Guinea-Bissau Hungary Andrw P. Rogerson World Bank Resident Representative Suba Taiue Center, 4th Roar - Nagrnez Ulca 44 Budapest 1065. Hungeiy India Oktay Yenm The World Bank Chief, Resident Mission 70 Lodi Estate New Delhi 110003, India (nmiling address P.O. Box 416, New Delhi 110001) (connwed) 224 IBRD/IDA Appendices Offices of the World Bank rcontinuecO Appendix 4 June30, 1994 Indonesia (vacant) The World Bank Dietor. Resident Stall Jalan Rasuna Said Kay. B-10. 3rd lIar Kuningan, Jabat 12940, Indonesia (mailing address: P.O. Box 324?JKI) Jamaica Robert Ban Pulley World Bank Resident Repstive Island Lle Center 6 SL Lucia Avenue Suite 8, South Kingston 5, Jamaim Kazakhstan David Pearce The World Bank Resident Represenie c/o Ministy of Ecnmy 115 Zheltkaon Sir. Almaly 480091, Kaztan Kyrgyz Republic (vacant? Bishke Kyrgyz Republic Resident Represenbtaive Madagascar Michel Palein Banque Mondiale Resident Repstaive 1. Rue Palrice Lunumba Antananarivo 101. Madagascar (mailing address LP. 4140) Malawi Arif Zulfiqar The World Bank Resident Reprsenttive Development House Capil City Ulongwe 3, Maiawi (mailing address: P.O. Box 30557) Mali Uncla McGinnis The World Bank Resident Repsenbtave treuble SOGERIH Avenue Moussa Trade -uartier du Reuve Bmnaw Mali (mailing address B.R 1864) Mauritania Claude Delapierre The World Bank Resdent Repre Villa No. 30, llot A Quarier Socofim Nouakchtt Mauritanria (mailing address: BP. 667) Mexdco Exgene 0D McCarthy Baco Mundial Resi-dent Repsntaive Plaza Nalin lnsugenles Sur 1971 Nivel Paseo, Locales 71 y 72 CaL Guadalupe tnn 01020 MWxico. O.F. Mozarnbique Roberto Chavez World Bank Resident Represen Ave. Kenneth Kaunda, 1224 mapguto, Mozambique (mailing address Cain Posbt 4053) Nepal Joseph Manickavasagam The Wodd Bank Resident Rep esenv Jyoti nan anipath Kathniarxdu, Nepal (mailing address: PO. Box 798) Apperdx 4 225 Nicaragua Ulrich Laier The World Bank Resident Representative Edlicio Miaga Moduo A-1 Plaza Espafla Managua, Nicaragu CA Niger Abdul Haji Banque MUndiale Resident Represene Rue des Dallols Nnmq. Niger (miuling addess BP. 12402) Nigeria Gerald F. Flood The Wodd Bank Resdent Representate 1st Hoar, Plot PC-10 Engineering Close. oil Idowu Taylor Skeet Victr Island agos, Nigeria (mailing address PD. Box 127) Pakisan Philippe Nouvel The World Bank Chief. Resident Mission 20 A islamahad, Pakistan (nmailirg address PR0 Box 1025) Philippines Thri W. Allen The World Bank Residert Reprsentative Central Bank of the Philipoines MuliStory Building. Room 200 RoPs Boulerd Manil, PhuTippiries Poland Paul Knotler The World Bank Resident Repntative INTRACO I Bulding 17th Roor 2 Stawk Street 00-193 Warsaw, Poland Romania Antau Htamn Tie Wodd Bank Resident Representalive Boulevard Dadia 83 Sector 2 Buchra Roamnia Russia Everdus Stoultiesdijk The Wold Bank Resident Reptatie Moscow Ofice Sad---Kuddnska No. 3 Moscow 123242 Russian Federaion Rwanda Julio Gamba The World Bank Resident Representative Blvd. de la RNolution SORAS Building Kigali, Rnoda (rmiling address P.O. Box 609) Saudi Arabia Mohsin Alikhan The World Bank Resident Mission Resident Representative UNDP Building. King Faisel Street Riyadh. Saudi Arabia 11432 (rmailing dress P.O. Box 5900) Senegal (vacn The World Bank Resident Represenbtave Inmeuble S.DhtH 3 Place de 'lndepemdance Dakar, Senegal (mailing address B.P. 3296) rofnuo Offices of the World Bank (.m,.,) Appendix 4 June 30, 1992 South Africa Isac Sam World Bark Resident Representative Grenor Cte, Fist Rom Hyde PaTk Lam Hyde Park 2196 Jotannesburg, South Atica Sri Lanka J. Robero B. Benterodt The Wodd Bank Resident Wemafn Developnent Fnan Corporaion of CEylon (DFCC) Building. 1st Roar 7305 Gagle Road Colombo 3. Sr Lanka (naiTmg address P.O. Box 1761) Tamania Motoo Kniin The Wadd Bank Resident Rerseante NLC Building Mh Floor. B) Dar-es-Sr Tanania (maing address P.O. Box 2054) Togo Jacqus DaniEl The World Bank Resident Represenmfe 169 boulevard dui 13 Jaunier -nimeuble BTCI OB i tage) Lorno, Togo (mmalling addres BP. 3915) Turry Fredeick Thomas Tenple The Wodd Bank Chief, Resident ission Aaturk Buivari, No. 211 -a.-Cuis Buiding Kat 6 0683 K Wditei nka Turkey Uganda Bian Falconer The Wodd Bank Resident Represente P.O Box 4463 Kamfpla, Uganda Uraine Daniel Kamann World Bank ChieK Regional Mission 26. Shovko St (Et K liblmdt St.) Suites Two and Three KIev 252D24. Ukraine Uzbeldstan Paw Hasan 43. Academician Suleirnanva SL Regional Repesetatie Tashlert Uzbelistan Venezuela Bmce . Carison Banco Mundia Resdent Reprntate Edi Paque Crisal Terre Oesle, Piso 15 Oricina 15-OS AvWeida raisco de Miranda Los Palos Gmndes cas, Venezuela Viet Narn (vacant) World Bank Resident Representie Suile 301302, 4th loior Bonh Minh HotEl 27 Ly Thai To SL HIlan Kean Distmict Hanoi, Viet am Zaire (vacart) Wodd Bank Liaison Olfice Liaison Olfice dcao UNDP P.O. Box 7248 Kinsh, Zaire AppendIx 4 227 Zambia 6 redion a Nkauo The Wodd Dank Resident Represet Red CrsHouse 2nd Floor Long Acres Lusaka Zambia (mailing address P.O. Box 35410) Zimbabwe Chrislian . Poorin The Warld Bank Resident Representte CABS Cenhe (lil FlRor) Jasn Moyo Ave (mailing addres: P.O. Box 2950) a To be su led by Amad Guirard as oJ ulyt. 1994. b. To be id by P[ene LaNi-Mlis as of July 1.1994. c Culrl N Vdiltlaugby. CMt as ofly 1. 1994. d. To be s ede by Javad KlrfladehSiTu as of Jlyt. 1994. c Dini NI de Tray. Chie as o July II. 1994 Miel Rt Rabn, Cie as Sqmer S. 199 g. B 0. Babsort Chb as at dy t1994. 228 IBRD/IDA Apperdces IBRD and IDA Cumulative Lending Appendix 5 Operations, by Major Purpose and Region June 30, 1994 (milfions of US dollae) - IBR Os to to Ws. by reo East Europe Latn Middle Asia and Ameibk East rd and South Cental and the NorWh PuW Ase fica PaEr Asia Asia Cuban Aica Total AgricutLre Agnculbure sector lon. 1,3057 3,423.6 1,39&0 2.878.1 9,34.9 2251.4 21391.7 Agroindusy . ................... 30.0 620.2 81.4 894.1 1,ZZ8.4 2242 3,0583 Fishies .- 92.7 14.0 7.0 162 41.0 170.9 F orestr-. 372.0 7X0 - 4089 155.0 1905 1204. Irrigation and drainage ............ 1102 4205.7 814.6 1,421.4 2.9895 1,661.4 12,202.8 Liestack ..................... 170.7 80. 24il0 179.5 1,042.0 465 1,766.7 Other-gricultwe ............... 297.0 85.1 190.0 847.0 225.5 2245 1,889.1 Perennl crops . 6345 1,595.4 - S. 123.0 58.0 2,460.9 Resarch andi erension. 1542 423.4 25.0 209.9 735.0 77.5 1,625.0 Total .3,574.3 10,i04.1 2751.0 6,895. 16,149.5 4,775.0 44,749.8 Education .542.5 4,2629 55.0 1,105.3 4,162.8 1,719.2 11,847.7 Energy . Oil, gas, and coal .4002 1,5229 3,710.0 3,069.5 1,413.5 7712 10,87.3 Power .........1.8721 1 11.480.2 9,334.6 4.4132 11.510.7 Z053.8 40.764.6 Total .. 2,272.3 13.003.1 13.044.6 7,482.7 13.024.2 2.8250 51,651.9 Environment .- 331.5 - 9Q0 429.5 6.0 859.0 Flanclal sector .1,299.0 5,179.0 02 403 10,123.1 2,68M 26396.4 Industr. 557.i 3,317.2 2.919.9 3,760.7 4,237.6 1,700.7 16,653.7 Mining nd other extractlve 541.1 484.1 793.5 - 1.043.3 2642 3,1262 Mufltsec?or .............2,1.6Z6 4.042.3 610.0 ,8242: 7,0512 2,112.3 2,02.6 Popublaon, heath, and nutition ....................4 289 757.9 31.3 446.0 1,772.8 421.6 3,729.0 Pubic sector management .... 152 147.0 150.0 890.2 2,397.6 172.9 3,572.9 Sioclal sectr ................. - - - - 158.0 - 15&0 Telecommunicautons .......... 5102 1,5347 712.5 545.3 5303 691.5 4,5245 Transportaton Aviaio ...................... 59.0 92 5.6 19.0 218.5 - 311.3 Highways ..................... 1,817.8 6,393. 7389 2,7022 7,6085 1,356.1 20,617.4 merW-ransportation .4.5 - - 295.0 17.8 30.0 347.3 Pods and waenays ............. 285.9 1,555 4372 625.8 523.7 967.0 4,398.1 Railways ...................... 733.5 2,910.8 1,500.4 1,093.0 1,9385 237.5 8,473.7 Transportation sector loan ......... 61.6 677.2 184.0 137.0 301.8 - 1,361.6 Urban transport ................. - 34Z0 25.0 40.0 1,555.5 116.0 20715 Total ...................... . 2923 11,951.6 2891.1 4912.0 12,164.3 Z706.6 37,587.9 Urban development ........... 9337 2915.3 294.1 7672 4.119.6 1,525.1 10555.0 Water supply and sewerage ... 1.169.8 1, 4 103.0 1,30.8 4,5392 2.237.5 11,183.7 Grand toa.. . 165,400 60.373.1 272 39.029.6 81,9530 23.84.4 249,398.3 a. BEcerttorlte toW anout shown in fobotne d. no maCot is of d canceflim sake f te oadginal maffnihet. 3BF1D loans to fte IFC are erclted. b. Operaos thve been dasseb th bye major purpose t fanra MaN yajn clude at* in more tlan one sec or su tr. Appendix 5 229 IDA credits to boDrun by region East Europe LaNn liddle Asia and Ainedr East and - IBR0 an Sout central and ton North NWd Aldca Padlic Asia Asia Caidbban Afria Total IDA 3,352.5 2,476.7 3,152.8 22.4 280.4 309.3 9,594.1 30,985.8 364.5 211.0 716.9 - 16.5 45.0 1,360.9 4,419.2 55.7 70.0 217.3 - - 67.3 410.3 5B1.2 391.0 728.9 828.9 - 38.9 - 1,987.7 3,1921 871.0 1,221.1 6,164.9 80.0 18.5 396.5 8,7520 19,954.8 479.7 58.1 267.1 20.5 67.5 5.0 927.9 2694.6 338.9 424.5 405.0 - - 56 1,175.3 3.044A 4889 300.5 283.0 15.0 3.2 - 1,000.6 3,551.5 713.0 120.5 767.8 - 21.0 20.4 1,642.7 3267.7 7,0552 5,6483 12B03.7 137.9 446.0 350.4 26,941.5 71,691.3 3,049.6 1,421.9 2,495.3 9.6 176.9 391.5 7,544.8 19,392.5 6383 66.0 371.4 - 1482 86.0 1,309.9 12,197.2 1,572.1 308.8 3,745.5 25.7 201.7 2529 6,1067 46,871.3 Z210.4 374.8 4,116.9 25.7 349.9 338.9 7,416.6 59,068.5 Z6 50.0 14.7 - 4.8 - 72.1 931.1 Z382-5 302.8 829.0 35.0 155.1 74.8 3,779.2 30,175.6 987.5 137.2 1,616.5 - 27.5 97.9 2,866.6 19,520.3 74.2 16.0 19.0 - 49.5 - 151.7 3,284.9 5,425.5 217.7 3,999.7 141.1 499.5 35.0 10,318.5 33,121.1 1,2352 597.9 2,549.6 - 185.0 303.5 4,871.3 8,600.3 801.8 145.7 171.8 64.0 115.1 13.7 1,312.1 4,885.0 - 9.7 - 10.9 - - 20.6 178.6 441.2 101.8 8Z2 18.0 - 83.0 1,52652 6,050.7 14.0 - 10.0 - - - 24.0 335-3 3,651.7 778.7 1,26.4 33E.3 1802 ,223.3 26,840.7 8.5 320 267.2 18.0 - - 325.7 673.0 423.2 1512 262.0 - 16.0 92 871.6 526.7 628.6 206.7 1,017.5 - 45.0 38.5 1,936.3 10,410.0 624.1 17.8 47.5 - - 30.0 719.4 Z,081.0 - 60.0 176.0 - - 7.0 243.0 2,321.5 5,360.1 1,Z56A 3,044.6 18O 399.3 264.9 10,343.3 47,931 2 1,274.9 432.4 1,5923 453 1742- 66.0 3585.1 14,141 1,0042 494.2 1,847.5 11.6 91.1 203.2 3,651.9 14,835.6 31,304.9 11,206.8 35,982.9 517.1 2,673.9 2722.9 84.4085 333,80&80 c. Indudes $497 million in Ewopean recnsncion loans rnte bore 1952 d Cancellations amownt tD S23U57.3 milion for the IBRD and $4.7555 milion for lDA, loWing 528221i5 million. 230 IBRI)IDA. Appendices IBRD and IDA Cumulative Lending Appendix 6 Operations, by Borrower or Guarantor June 30, 1994 (millons or US dl0es) IBD I=n IDA uefts Total Borrower or guranbr Number Amoun Number Amrount Nunbe Amount Afghanistan .. .............. - - 20 230.1 20 230.1 Africa region ............... 1 15.0 1 455 2 605 Albania .................- - 10 132.6 10 1326 Algeria ................. 54 4,5605 - - 54 4,560.5 Angola ..................- - 8 248.9 8 24&8 Argentina ................. 58 8,741.8 - - 58 8,741.8 Amenia .................. 1 12.0 1 210- 2 40. Australia .................. 7 417.7 - 7 417.7 Austria ................. 9 106.4 - - 9 106.4 Batwams. The .......... 5 4.B - - 5 42.8 Bangladesh ................ 1 46.1 141 6,729.9 142 6,776. Barbados ............... . 11 1032 - - 11 1032 Belarus ................. 3 1702 - - 3 1702 Belgium ..4 7-.. . 4 76.0 Bee ................. 6 533 - - 6 533 Benin .......... ....... - - 40 534.3 40 5343 Bhutan ................. - - 6 282 6 28.2 Bolivia ........ 14 299.3 40 948.1 54 1,247.4 Bolswna ................. 20 28D.7 6 15. 26 2965 Brazil .... 21,689.7 - - 206 21,6897 Bulgia .... 7 593.0 - - 7 593. Buridnafaso .-------.----- - 1.9 44 7463 44 7482 BRunndi ..--------------tI 4.B 44 658.1 45 6629 Camboda .- - 1 62.7 1 62.7 Carneron ................. 44 1294.4 17 429.0 61 1,723.4 Cape Vere . - - 7 44.9 7 44.9 Canbbn region ......... 4 83.0 2 43.0 6 126.0 Cenrl African Republic ....... - - 23 386.9 23 386.9 Chad . - - 29 444.1 29 444.1 Chile .------ 54 3255.4 - 19.0 54 3,274.4 China ................. 82 11.759.4 59 7.795J 141 19,5551 Colombia ................. 137 8,047.6 - 195 137 8,067.1 Comroms. ................. - - 12 73.2 12 732 Congo ....... 10 2167 9 174.6 19 391.3 Cost aica ................. 38 8. - 5.5 38 894.4 C6t foit e ...............d' 62 2,887.9 7 5222 69 3,410.1 Croaia ..............1 128.0 - - 1 12&0 Cyprus ................. 30 418. - -- 30 418.8 Czeh Republic ......... . 2 326.0 - - 2 326.0 Czechoslovakia .............. 1 450.0 - - 1 450.0 Denniak ................. 3 85.0 - - 3 85.0 OjbW . . - - 8 51.6 8 51.5 Domimnica.. - - 3 11.0 3 11.0 Dominican Republic 21 566.9 3 22.0 24 5819 Eastlrican Commurity ....... 10 244.8 - - 10 244.8 EernAAficaregion ......... - - 1 45.0 1 45.0 Euador .............. 54 1,912.9 5 36.9 59 - 1,949.8 Egypt ................. 56 3,955.8 31 1,376.5 87 5,332.3 ElSalvador . ... - 25 485.6 2 256 27 5112 Eqorial Guinea ............ - - 9 45.0 9 45.0 Estoni. 3 80.4 - - 3 80.4 Ethiopia ................. 12 106 52 1,860.6 64 1,969.2 Appendix 6 231 -IBRD lmo IDA Crets Traw Boowe or -gua. - Ntsbter Anolt Ntntr Amount Number Amaift Fi-i ................ . 13 152.9 - - 13 152.9 Finnd ................. 18 316.8 - - 1 316.8 Fr a n ce ................ . 1 250.0 - 1 250.0 G abon 1................. 1 2068 - - 11 206.8 Gamb ia,Thh ............... - - 23 1602 23 1602 Ghana .................. 9 207.0 73 24992 82 2.702 G ree e ................. 17 490.8 .- - 17 490.8 Grea nda ... . - - 1 5.0 1 5.0 Guawtna. ..... ...... 23 72.1l - - 23 725.1 G u'n eaa ..................- 3 752 41 854.5 44 929.7 Guirn-Bssau .............. - - 18 186.9 1B 186.9 Guyyaa ------------------ 12 80 12 247.8 24 3.8 Hai .................. 1 2fi 31 453.0 32 4556 H Londs. ................ 33 717.3 13 431R5 46 1.15.8 Hgun pBy ... .. 32 3,634.9 - - 32 3,634.9 oean ................. 10 47-1 - - 10 47.1 india .................. t 3 21.838.2 202 2184.1 355 43,1223 Indonesia ... ............ 188 20,4117 46 931.8 234 212435 Iranr slamic Republic of ....... 39 2 1 - - 39 2,05.1 lIrq .......... ........ 6 1562 - - 6 1562 Irelnd ................... 8 1525 - - 8 152.5 Isrl .......... ... 11 284.5 - - 11 284.5 It*l .......... ..... 8 399.6 a- - 8 399.6 anica ............. .. 58 122M1 - -- 5L 1i28.1 am ................... 31 862.9 - - 31 86z9 Jordan ................... 37 1.198.4 15 853 52 1.283.7 Kamlisan ............... 4 273.7 - - 4 273.7 KMnya . .... ........- 46 1200.0 62 22022 108 3,402.2 Kora Republic of ... . 107 8,324.0 6 110. 113 8,434.8 KyryaRepubrc . - - 3 138.0 3 13&0 Lao PeoplE's Demnocr-ic Republic ...............- - 20 383.6 20 383.6 Lada .. .......... 2 70. - - 2 70.0 Leanon ................. 7 368.7 - - 7 3687 Lesoio ................ 1 110.0 23 2242 24 3342 Lberia .. - 21 156.0 14 114.5 35 -270.5 Lithuana ................. 2 86.4 - - 2 81.4 Lumbourg ................ 1 12.0 - 1 12.0 Macedona FYRof ........... 1 40.0 - 40.0 1 80.0 Madagar ............... 5 32.9 59 1,191.5 64 1224A Malw . . ......... 9 124.1 55 1269.8 64 1,393.9 Malaysia ... . 83 3.446.6 - - 83 3.446.6 Maldives ................. - - 5 33.9 5 33.9 Mali . .......... - 1.9 49 912.0 49 913.9 Malta ................. 1 7.5 - - 1 7.5 Mauritnia ................. 3 146.0 1 3208 34 466.8 Mauritius ................. 27 354.2 4 202 31 374.4 Mexdci .................146 23.418.6 - - 146 23.41&6 Moldo'2 .................2 86.0 - - 2 8r.0 . .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(ofied 232 IORDJIDAA pendces IBRD and IDA Cumulalive Lending Appendix 6 Operations, by Borrower or Guarantor (=u.L8 June 30,1994 (mtinion of US dolar) IBD lbams IDA credits Tobl Bofwam or isfM Nwnwbf murtd Mbter Anmwd rain Atnnt Mongolia .............. - - 4 BED 4 85D Moroco ................. 104 7,059.7 3 508 107 7,140.5 Mozunbique ---------------- - - 27 1.4013 27 1,401.3 Myanner ................. 3 33.4 30 3 D4.0 33 837.4 Nepal ... - - 64 1.394.1 64 1.394.1 Netherds ................. 8 244.0 - - 8 244.0 New Zealand ...... ......... 6 1268 - - 6 126.8 Nwiaragua ...... ........... 27 233.6 9 340A.4 36 574.0 Niger ................. - - 37 5s2.5 37 5s Nigeria .. ............... 84 6.2482 14 9029 9B 7,151.1 Norway ................. 6 145.0 - - 6 145.0 Cman ................. 11 157.1 - - 11 157.1 Padstan .-- 78 5,1612 95 4,4206 173 9.5832 Panara ................. 33 8763 - - 33 au63 Papua New Guinea.27 54ZD 9 113.2- Paraguay .- 31 625.1 6 455 37 671.6 Peru ................ .69 3.437.? - - 69 3.437.7 Philippines. 133 9,050.9 5 2942 138 9 l1 Poland ................. 19 3,657.0 - - 19 3,657.0 Porugal................ 32 1,338. - - 32 1,33=8 Rmnia ................ 41 3,534. - - 41 3,5349 Russia ................ 10 2.890.0 - - 10 2890.D R a -a-da.---------- - - - 44 644.4 44 644.4 STionom6andcPrindpe ........ - 8 8 58.9 Seea ................. 19 164.9 54 1,0522 73 1j217J Seychelles ................. 2 10.7 - 2 10.7 Senra Leone .--------.- 4 18.7 18 3120 22 330.7 Singapore .... 4 181.3 - - 14 181.3 Slovak Republic ............. 2 135.0 - - 2 135.0 Slovenia .................. 80.0 - - 1 80.0 Solomon lands ............ - - 6 33.9 6 33.9 Somalia. - - 39 492.1 39 492.1 Soulica . 11 241.8 - - 11 241.8 Spain ................ 12 478.7 - 12 47U Sd rikI ..... 12 210.7 61 1,0620 73 2,072 S Is and Nevis ........... 1 1.5 - 15 1 3&0 SL Lua .1 2.5 - 52 1 7.7 Sb Vincnt andthe Gednes 1 1.4 1 6.4 2 7.8 Sudan ................. 8 1660 48 1,35MI9 56 1,518.9 Sailand ................. 11 75.8 2 7.8 13 83.6 Syia . 17 6132 3 47.3 20 660.5 Tanzania ................. 18 318.2 81 2.6915 99 3.009.7 Thalarnd ................. 100 4,734.1 6 125.1 106 4.,592 Togo ................. 1 20.0 35 535.7 36 555.7 Tongs ..................- - 2 5.0 2 5.0 Tdinidadand Tobag ..........o 17 2165 - - 17 216.5 Tunisia ................. 93 3,394.7 5 74.6 98 3,469.3 Turkey ................. 112 12,057.9 10 1785 122 12236.4 Uganda ................. 1 8.4 54 2Z116.9 55 2,1253 AppendIx 6- 233 IBRD loars IDA Credits TOW Bwone or gwsolor Nwgber Amount Ntinb Amard Nube Amoun Uhaie ....... ....... .. 1 27n -0 1 27.0 Ur u g uay ................... 38 1,231.6 - - 38 1.231.6 Uzbdsan ......- ..... 1 21.0 - - 1 21.0 Vanuatu ................... - - 4 15.4 4 15.4 Venezuela ................. 29 2,984.7 - - 29 2,984.7 VietlNam - - 4 384.5 4 384.5 Westem Afri region -------- 1 6.1 3 52.5 4 5B.6 Westem Samoa ............. - - 8 46.6 8 45.6 Yemnen .................... - - 99 1,0814 99 11.01A Yugoslavia .................9 0 6,114.7 - - 90 6.114.7 Zi!re .... 7 330.0 59 1.1515 66 1481.5 Zamdia .. ................ 28 6791 31 1,234.5 59 1,913.6 imbabwe .-----------------24 893.2 6 443.4 30 1,426.6 the .................... 14 329.4 4 15.3 18 344.7 Toal .................... 3660 249,3913 2.445 84.408.5 6105 333.8O6.8 -zem Nut: Joint IBADRDA operatons ae oued owny once. as ERD eralms When more dn one It is madt for a tingle pmiecth Ie opsanion is mowled ol one. Detils may not aud to loWs bse ol rowidt a. Repre IRD lois and IDA cSdis tade at a bme when tie aaes o Taiwn eprefld iM in Te Worad Buk (ptior to May 15. 198. 234 IBID AAppedices Statement of IBRD Loans Approved Appendix 7 during Fiscal Year 1994 Pdn;Wl Borrwer or gtlorlhopmje rname Date of approvl Matarllies (US$ nilliors) Algeria Water Supply and Swage Reabilittion Projed ......J... 02Jun-94 1999/2011 110O Emergency Desert Locust Control ProjecL ............... 23-Oec-93 1999/2011 30.0 ArgenUna Capital Market Development Project ......... .......... 01-Mar-94 20012009 50O. Capital Maket Developnent Technical Assstace Pro0- ....M 0-ar-94 1999/2009 8.5 Materal and Child Hmalh and Nutrition Project ........... 03-Aug-93 1999/2008 10an Barbafts- Human Resources Project .............01-Jul-3............ Oi 19982D005 7.8 Bebnrus Foresby Deelopment Project ............ ........... 26M -94 1999/2009 41-9 Rehabilitation Loan ........ 16-Nov-93 199912008 120.0 Institution Building Project ..............-........... 29Jul-93 19992006 83 BelIze Beia City Infstructure Proiect .......... ........... 30-Nov-93 1998m11 20.0 Brazil Third Northeast Basic Education Project ......... 23-Nov-93 1999/008 206 AIDS and STD ControlPm t .......................Pj.0 9-Nov-93 19990200 160.0 Brazil (Guarantor) Basic Education Qwlily Projt-State of Parnd .......... 28-Jun-94 2009) 96.0 Water and Coastl Pollution Managenent Project-State ol Espfrito Santo .........28-Jun-94 ..2002009 154.0 Beic Education Quality Improvement Projec-State ol Minas Geraiss .17...................... ................ 1999/009 150.0 Stae Highway Managemt It Project- Ste ol Fui ................................ 1 r-94 199912009 54.0 State Highway Management II Project-- State of Tocanlins ........................ 15-Mar-94 1999/009 87.0 State Highway Manageaent It Project- State of Maanho ............................. 15-Mar-94 199909 79.0 Municipal Marnag t and EiMmrnmental Infrastructure Project-State of Minas Gerais 2-........... 20Jul-93 19990 150.0 Bulgaria Agricultra Deelopment Project ....................-.29-Jun-94 199912011 50.0 Water Companies Restructuring and Modernization Project .................. ......... 26-May-94 199912011 98D Caribbean Development Bank (Guarantor) Six Caribbean Deelopment Bank Project ....... ....... 29-Jun-94 1999R011 20.0 Chile Municipal Devopment Pilot PMrect ................. 07-Dec-93 1999/2011 10.0 China Natonal Highway Project ..................0J........ un-94 200012014 380.0 Xlolangdi Multipurpose Projed .......... ........... 14-Apr-94 20022014 460.0 Yang0ou Thermal Power Project .........22-Mar-94 1999/2014 350.0 Sichuan Gas Development and Conservation Pject ........ 17-Mar-94 1999/201 4 255.0 Shnghai Environn Project ....................... 08-Mar-94 1999/2014 160.0 Telecommuiications Prolect ........................ 21-Dec-93 199912014 250.0 Fijian Provincal Highway Project ..................... 14-Dec-93 199912014 140.0 Appendix 7 235 Prindcpal amoint Boirnwer or guarart/proe name Dali d approval MaIrIlus -USS mlillonsw China (continued) Second Shanghai MehqopoiLta Trnsportation Project . 14-Oct-93 1999R014 150.0 Colombia Natural Resource Management Program ................ 23-Dec-93 1999/2U13 39.0 Secondary Education Project ........................ 16.-Dec-93 1999l2014 90.0 Public Fnancial Management Proj jt 07-Oect3.......... 07-Dec-93 199912014 30.0 Costa Rica Health Sector Rulorm Social Security System Proo j e c .............................. 21-Ot-93 199/2011 22.0 Croatia Emergency Reonstrucion Project. 21-Jun-94 1998/2011 12&0 Czech Republic (Guarantor) Telecomrnunications Pmiect ........................ 09-Sep-93 19992003 80.0 Ecuador Irrigation Subsector Technical Assistance Program 10-May 10-May-94 19992014 20.0 Third Social Deelotnent Project-. Social Investment Fund. .22-hb-9 22-Feb-94 1999/2013 30.0 Mining Developnent and Environmnl Conlrol Technical Assistn Proieclt .2Oct.-3 .. 1999/2013 14.C Egypt (Guarantor) Agdicultural Modernizalion Project ..................... 24-Mar-94 1999/2014 54.0 El Salvador Technical Assistance Project .14-Sep-93 1999/2013 - 5 Second Strutural Adjusment Ln. .14-Sep-93 1999/2013 50.0 Estonia District Healing Rehabilitation Project .26-May-94 2000/2009 314 Highway hMintenance Project .12-May-94 1999/2009 12.0 Gabon Economic Recovery Loan.. 21un-94 1999Y2009 30.0 Hungary Tax Administration Modernization Project.08-Jul-93 199812000 29.0 Hungary (Guarantor) Energy and Environrment Project. 17-Feb-94 19992009 100.0 India (Guarantor) Container Transport Logstics Project .................. 09-Jun-94 2000/2014 94.0 Indonesia Sumatera and Kalirmntan Power Project .21-un-94 2000/2014 260.5 Java Irrigation Improvement and Water Resources Management Project. 21-Jun-94 2000/2014 165.7 Uniersity Research br Graduale Education Project .14-Jun-94 2000/2014 58.9 Integrated Swamps Development Project .14-Jun-94 200012014 65.0 (conhinued) 236 IBRD/IDA Appendices Statement of IBRD Loans Approved ApendIx 7 during Fiscal Year 1994 (confn Principal Borroe r guarantorfPlrui naon Dale al approval Maturiile (US5 mililes Indonesia (continued) Seamrang-Surakarta Urban Deelopment Project ................... ...... 07-Jun-94 20D012014 174.0 Dam Salely Project ......... I.. ........ 31-May-94 1909/2014 55.0 Filth Kabupaten Roads Project ............ ... 17-May-94 2000/2014 101.5 Surabaya Urban Development Project ........ ......... 12-Apr-94 1999/2014 175.0 Skills Development Project ............... .......... 25-Mar94 199912014 27.7 Second Highway Sector Investment Project ... 10-Mar-94 1999/2014 350.0 National Watershed Management and Conservailon Project ..................................09-Nov-93 1999/2013 56.5 Jamaica Tax Administration Reform Poect ...................... 16-Jun-94 2000/2011 13.2 Private Investment and Export Development Project ........ 25-Mar-94 1999Q011 35.0 Jordan Energy Sector Adjustment Loan ... 07-Oct-93 1999/2013 80.0 jordan (Guarantor) Telecommunications Project .............. 26-May-94 1999/2014 20.0 Kazakhatan Petroleum Technical Assistance Project ................. 02-Jun-94 1999R011 15.7 Urban Transpor Project .................. ......... 074pr-94 1999/2011 40.0 Rehabilitation Loan ....................... I ....... 16-Se-93 1999/2.010 100.0 Technical Assistance Project ...............03-Aug-93 1999/2010 38.0 Korea, Republic of Science and Technical Education Project ................ 06-Jan-94 1 499/2009 190.0 Environmental Technology Development Project .. . .. 06-Jan-94 1999ROOB 90D Financial Intermediation Proiec ........... ........... 23-Dec-93 1999/2009 100.0 Latvla Agrcultural Development Project ...................... 11-Jan-94 199812011 25.0 Lebanon Irigation Rehabilitation and Modernization Project ......... 29-Jun-94 200012011 572 Revenue Enhancement and Fiscal MHnagement Technical Assistance Project ........... ........... 29-Jun-94 19992011 19.9 Uthuania Powr Rehabilitation Project ............. ........... 24May-94 1998/2011 26.4 Macedonla, FYR of Economic Recovery Loan .......08-.. .. 08-Feb-94 1999/2014 40.0 Malaysia Health Development Project .............. 14-Dec-93 1999/2011 50.0 Second Rubber Industry Smailholders Development Authority {RISDA) Project ............. ........... 25-Jan-94 199942009 70.0 Mauritius Technical Assistance to Enhance Competitiveness Project .................................. 244-y-94 2000/2009 7.7 Appendix 7 237 Prindpl amidl Borom ar guaror$roject nime D of apprew Mabbit (IUSS rillbns Mexdco (Guarantor) Norhern Border Environment Project 09-Jun-94 200012009 368.0 Secnd Waer Supply and Sanitation SectorPom.... 09-Jun-94 1999/2W9 350.0 Second Solid Waste M gement Project .09-un-94 1999R009 200.0 Second Prirmay Education Proect. 31-Mar-94 199909 412.0 On-Farm and Minor Irrigation Networks Improwement Project .17-Feb-94 1997/200B 200.0 Moldova Rehabilitation Loan .21-ct-93 1999t2013 60.0 Morocco Second Agricultural Sector Investment Lon .23-Jun-94 20002014 121.0 Irrigated Area, Agricultural Services Projet .21-Dec-93 1999/2014 25.0 Filth WaW Supply Project .23-Nov-93 1999/2014 128.0 Environmental Management rject. .14-Sep-93 1999/2013 6.0 Morocco (Guarantor) Filth Water Supply Project (ONEP) ......... .......... 23-Nov-93 19992014 32.0 Natona] Rural Finance Project .23-Nov-93 1999/2013 100.0 Pakistan Power Sector Development Projct .23-Jun-94 1999l2014 230.0 Public Sector Adjustment Loan . 14-Sep-93 199902013 150.0 Panama Roads Rehabilitation ProWct. 21-Dec-93 19992011 60.0 Papua New Guinea Petroleum Exploraion and Development Techfrical Assistance Project .09-Dec-93 199912013 11.0 Paraguay atural Reseuices Management Project .22-Feb-94 1999/2013 50.0 EFgit Highway Project .21-Dec-93 199013 65.0 Peru Transport Rehabilitation Project .17-Mar-94 1999J2014 150.0 Basic Health and NutritiOn Project .................... 0Feb-94 1999R2014 34.0 Social lavelopment and Compensation Fund (FONCODES) Project. 16-Dec-93 19912013 100.0 Philippines o.Guarantor) Leyte-Luzon Geothermal Project- MNtional Power Corporation (NPC) .07-un-94 199912014 113.0 Lyte-Luzon Geothermal Project- Philippine National O; Company (PNOC) .07-Jun-94 1999/2014 114.0 Subic Bay Freepon Prot .............Pj.......... 02-Jun-94 2000/2014 40.0 Leyte-Cebu Geothermal Pmiect .03-Fb-94 1999)2013 211.0 Poland Forest Development Support Pmiect .29-Jul-93 1999/2010 146.0 (coat/md 238 IMM/IDA Appendies Statement of IBRD Loans Approved Appendix 7 during Fiscal Year 1994 [conidue anounl Barower or guamnWtopject nme Dae at appvrv M;utlim (USS niions) Romania Industial Developrat Project ..................,..19-y-94 20002014 175.0 Petmoleum Sector Rehabilitation Project .................05-Apr-94 199912014 175.6 Education Reform Pmiect .............0-............. 0Apr-94 1999t2014 50.0 Russia Second Oil RehabilitEaton Project ................... 29-Jun-94 1999/2011 500.0 Enterprise Support Prject . 21-Jun-94 200012011 2000 Land elormi Implementation Support Prect ................ 16-Jun-94 1999g211 80.0 Agriculture Reform Implementation Support Project ........ 16-Jun-94 199912011 240.0 Financial Institutions Development Project ....... ........ 19-May-94 1999/2011 200.0 Highway Rehabilitation and Maintence Project .......... 17-Feb-94 -1999/2011 300.0 Slovenia Enterprise and Financil Sector Adjustnent Loan .......... 15-Jul-93 1999/2008 00 Slovak Republic Economic Recovery iyar ........................... 30-Nov-93 19992011 80QO Slovak Republic (Guarantor) Telecommunications Project ........... ............. 15-Jul-93 199010 55D Tunisia Northwest Mountainous Areas Dewelopment Project ........ 23-Dec-3 19992011 27.5 Agricultural Sector lnvent Loan ........ ........... 18-Nov-93 199921 120.0 Private Investment Crecrit Project ..................09-Dec-93 1999/2011 500 Tunisia (Guarantos$ Private Investment Credit Project-Arab Tunisian ......... Bank (ATB) ........................... 09-Dec-93 1998/2011 6.0 Private Investment Credit Project-Banque de DJveloppemenI Economique de Tunisie ...... ....... 09-Dec-93 1998R010 12.0 Private Investment Credit Project-Banque Intemnatiorale Arabe de Tunrie (BIAT) ............ ............. 09-Dec-93 199812011 8o Private Investment Credit Projed-anque de Tunisie et des Emirats d'invesfisserment (BTb .09-Dec-93 1999/2011 10.0 Private Investment Credit Project-Credit Fancier Commercial de Tunisie (CFCT) ........ 09-Dec-93 199612011 7.0 Private Invsent Credit Project-citt Thniso-Seoudienne d'Investissemnt et de DEveloppemnent (STUSID) ....... 09-Dec-93 1999/2011 10.0 Private Investment Credit Project-Tunisie Leasing (It)..... 09-Dec-93 199B12011 6.0 Private Investment Credit Project-Union Bancaire pour le Commnerce et l'Industrie (UBCI) ..................... 09-Dec-93 199912l 7.0 Private Investment Ciedit Projec-Union Tunisienne de Leasing (UTL) .......0............. 09-Dec-93 1998/2011 4.0 Turkey Privatzation Implementation Assistnce and Social Safety Net Project .03-M............................lay-.94 1999/2011 100.0 Uruguay Basic Education Ouality Improvement Project .03 ay-94 2000/2009 31.5 Natual Resources Manamn t and Irrigation Development Project . 2 25-Jan-94 1999/2009 41.0 Private Sector Deveopment Project . 25-Jan-94 19992009 35.0 Uzbidstan Instituion Buildinfgechnical Assistance Project .07-Oct-93 . 1999)2013 21.0 Appendbk 7 239 anteu Dnwuer or gu.toriproject nane Date W appovi Mahuitbs (USS millions) Venezuela Basc Education Project ............................ 04-Nov-93 199 08 89A Urban Tarasport Pmiect .............0.............. Nov-93 1999/208 10D.0 Zimbabwe (Guarantor) Third Power Project .. ........................... 18Ja-94 19992014 90- D TOtal .......................... 14,243.9 NOTE: All loans apwpNed in rlIs 1994 are at variable inte rates. 240 IB/IDAApperndie Statement of IDA Credits Approved Appendix 8 during Fiscal Year 1994 P-iciplws (millions) uss Cotmlpiyoied mm Date of atpprovl Mabuitias SDR equivalut Albania School Anbilitaion and Cpadty Building Pmire .....23J.. 2un-94 204034 6f9 9.6 Dunes Water Supply Rebirtation Project ...... ........ 10-May-94 20041034 8.4 11.6 Technical Asistance Proiect tar Socia Safey Net Deveopment ................................. 14-Sep-93 20042Q33 39 £5 Labor Market Development Projt ........ ............ 14-Sep-93 20041R3 3.9 £4 Housing miect ................................. 08Jul-93 200333 10.6 15.0 Armenia Eanhquke Rontuction Pmiect ................... 01-Feb-94 2004/208 20.1 28.0 Bangladesh Second Road Rehabilitaion and Maintneace Project ....... 28Jun-94 200404 103.9 141iB Jule Sedor Adjusnent Credit ........... ............ 20My-94 20042034 2.4 3.3 Jute Sector Adjustment Credit ....................... 17-F94 204034 175.0 247.0 Januna Bridge Prolect ....................... . 17-Feb-94 2004034 14316 200.0 Elznin Rtral Vkter Supply and Sanitation Project ............... 07-Jur-94 2-0/134 L7.0 9 Third Education Project 17-M94 2004/0 132 10.1 Ccxnnmity-Based Food Securt Project-12-Apr-94 200420 7.1 9.7 Ecomic Management Project ...................... 09-Nov-93 204 3.7 5.2 Bhutan Tnird Foresry Development Project ------------------ 06-Jul93 20042033 3.9 5.4 Bolivia Municipal Sector Development Projec- ---------------- 08-Feb-94 2 33 30.1 42.0 Structural Adjustment Credit ...............-N......... 14an-94 2001031 6.7 94 Burklna Fas PopWulaton and AIDS Control Project ..... ............. 31-Ma-94 2004/234 190 26.3 Health and Nition Project .............. ....... 31-Mar-94 2004t2034 212 292 Economic Recovery Credit ........... .............. 29-Mar-94 2004/2034 10.0 25.0 Cambodia mergency Rehabilitation Pmiect ......... ............ 25-Oct-93 2004/ 45.2 62.7 Caneroon Economic Recovery Credit ....1-..................... 16-Jun-94 202034 53.1 75.0 Structural Adjustment Credit ........... ............. 22-Mar-94 2004/2034 37.1 51.0 Structural Adjustment Pmgram .--------------- 10-Mar-94 2D042034 363 50.0 Cape Verde Public Sector Reform and Capacity Building Proijt ......0.. -B94 2004D 3 5.7 8.1 Caribbean Development Bank Sixt Caribbean Development Bank Project ........ ...... 29-Jun-94 200434 7.8 11.0 Chad Health and Sale Motherhood Project. 14-Jun-94 2004/2034 13.1 18.5 Public Works and Capacity Building Projet .19-M 94 20023 12.4 174 Econormic Recovery Credit .................... .. 29-Mar-94 20042034 14.4 20.0 China Forest Resource Development and Pmtection Projet ....... 07-Jun-94 200412029 141.7 200.0 Appendk 8 241 PdIncIlP anrst - {m~~~~~~~~nllialns) us$ Conrpmjet rue Date of appmd M*abtS SOR eqtulatet China (N/ad)4 Loess Platea Watrsh Rehabilitation Project . 25-May-94 20D4/2029 10E.3 150.0 r.olan9li Resettdnt P r oj e. .. 14-Apr-94 200412029 79.9 110 Songliao Plin Agricultural Development Pm oj ecL . 17-Feb94 2U4R029 1485 205.0 Secnd Red Soils Area Deelopment Pmrect ..03-Feb-94 20W42029 10U.4 150.0 Rural Health Wours Developnt Pro j cL ............... 03-Aug-93 00312028 79?3 110 Comroros, The Sna! Eerprse Development Projmc .21-Jun-94 200234 3.7 5.1 Populatain and Hu n du Resource Proect.. 144Dc-93 2004R2033 92 13.0 Congo Enaic RecoveryCedi ..........................Cr. 28-Jun-94 204)029 700 100.0 Ce d'Ivolre Nationl Agricultural Services Support Project .28Jun-94 2004W2034 15.7 21.8 Labor Foe Training Support Priect ---- . ..... 28.Jun-94 2004)2034 12.1 17.0 Rural SaviWngs and Loans Rehabilitation and Promotion Project 05-Apr-94 24033 1.5 2.2 Human Resourcs Adjusinent Pron ................ 24-Feb94 2002/1 62.0 85.0 Compettes and Regulaoy Reform Proiect .O 08-F94 20021202 362 50.0 Human Resurces Ajustment Program.08-Fe 2002/226 72.4 100.0 FinancW Sectr Adjushtent Program . .0 94 2001)2026 72.4 100.0 Egypt Agiculbal Modernization Project ..............---- 24-Mar-4 20042029 4&7 67.0 Ethiopia Calub Gas Developmnt Project .-- 29-M-94 2004.2034 531 743 Structural Adjtment Creit .14-Jan-94 20030 0.3 0.5 Gambibe, The Capacity Building for Environmental Mangement Technical Assistance Project.. 12-Apr-94 2004)2033 19 2.6 Public Works and Cai lty Rulding Priojet 14-Dec-93 2004033 73 11.0 Ghana Conrunity Water and Sanitation Proect. 14-Apr-94 2004)34 15.9 22.0 Local Government Development Project .. 17-Feb-94 2004034 27.7 38.5 Agriculbal Sector Adjutmment Cedit .14-Jan-94 2002)31 4.1 5.7 Agricultural Sector Investmen Pmret.. 14-Dec-93 2004033 153 21.5 Guinea Health and Nutrtion Sector Pmroje .01-Mar-94 2042033 17.4 24.6 Guyana Second Structural Adjushment Credit .14-Jn-94 2000M030 2.0 2.8 Sugar Industy Resucturing and Puivtizaion Project 16-Sep-93 200433 10.9 15.0 Water Supply Technical Assist and Rehabitation Prioect. 21-Dec-93 2004233 12.5 175 Honduras Agricultual Sector Adjustment Credi .----------- ---- 14-Jan4 2003Q033 20.1 27.9 Agricultural Sector AdjusLment Credit .................. 05-Aug-93 2003233 43.3 60.0 - - f~~~~~~~~confrne) 242 IIBRDfiA Appendices Stctement of IDA Credits Approved Appendix 8 during Fiscal Year 1994 ,cna3 Pdncipal amount (rillions) usa Couwt"yploied rune Date ot awmal Mafles SDR equatu rt India Faily Welfare (Assarn Rajasthen and Kamataa) Proiect 16-Jun-94 20 W22 627 88.6 Cara Blindness Control Proiect .12-May-94 204029 85.3 117.8 Malarashtra Emergency Earthqua Rehabiltion Project ... 31-Mar-94 20042029 1D7.0 246.0 Haya Waler Resources Consolidation Projet. 29-Mar-94 20042 1873 255.0 Foresby Reserch Educion and Extension Proec t......... 24-Feb94 20042D29 33.8 47.0 Andhm Pradesh Foresby Project ................. . 24-Feb-94 2004)2029 55.6 7A Kenya Micro and Small Eners Training and Technology Project . 05-Apr-94 200404 15.7 21.8 Education Sector Adjustment C it.14-Jan-9 2001/2031 30.3 422 Kyrgyz Repubic Patzation and Enteqiise Sector Adjustment Credit 29J"wi-94 2w4/2029 42.5 60.0 Telecoununications Project .23-Jun-94 2004/2029 12.8 180 Lao People's Democratic Republic Second Highway Imprement Project .14-Apr-94 200420 21.8 30.0 Forest hMa mt and Consewation Project .25-Mar-94 200420 6.3 B. Luang Nantha Promvincial Development Project.. 15-r-94 2004)2034 71 9.7 Lesotto Privation and Prvatee Seor Devopment Assisance Piect 17-May-94 2004034 7.9 11.0 Macedonia, FYR of Emcnomic fRv Cne dt .......................... 08-F94 2042029 29.0 4U0 Madagascar Cydcone gency Rehabilitton Project ................ 09-JU94 20040 93 131 Antrani Urban Warks Pmje t. 29-Mar-94 20042033 13.3 18.3 Ptoleum Secor Reform Proje ..................... 29-Jul-93 20030 3 36.7 51 MUalawi Second lnstktonal Development Poiect .--------------- 09-Jun-94 2004204 16.0 22.6 Entrepeneurhip Development arnd Drought Recovey Prom Credt .................... .......... 14an-94 2002/2034 3.1 43 Transport Sector Pmiect ............................. 26-May-94 204/2034 46.1 65.0 Econonric Reovery Credt ......................... 17-Mar-94 20042033 18.2 25.0 National Agricultual Research Project .................. 16-De-93 2004033 14.2 20.0 Maurtania Agriculkual Serices Project ......................... 8-Mar-94 200020 13.1 18.2 Public Enterprise SecLtor Adjusimen tCit ............... 14-Jn-94 20W4033 tO 1.3 Mongolia Transpot Reabilitation Project .24-May-94 2004/034 21.6 30.0 Economic Transition Support Project.........8........... 28-Oct-93 20D42033 142 20.0 Mozambique Second Economic Recovery Pm gram. 16-Jun-94 2004/2034 141.7 200.0 Gas Engineering Project......... .....: 16-Jun-94 200412034 21.3 30.0 Financial Sector Capacity Building Projec . 14-Apr-94 20042033 6.6 9.0 AppendCK 8 243 Prindip alount (muemos) uss Countryprolecl 'Mn Wie d approval Maluries SOR equifale Mozambique fcotinued) Second Roads and Coamstal Shipping Proje e ............ . 07-Apr-94 200U2034 136.2 1880 Nepal Population and Family Health Proect ............... 12-Apr-94 2004034 19.4 26.7 Road Maintenance and Rehabilitation Pmject ............. 15-Mar-94 20042034 36.6 505 Higher Education Project . .......................... 21-Dec-93 2004/2033 14.2 20.0 Nicaragua Sewnd Economic Recovery Credit .................... 21-Jun-I4 2004034 42.5 60.0 Second Economic Remoey C rit t..................... 21-Jun-94 2(4034 5.4 7.6 Health Sector Retaon Pr ect c........................ 16-Dec-93 2004/2033 10.8 15.0 Agrcultural Technology and Land Management Pmiect ..... 20-Jul-93 2004/2033 31.1 44.0 Nkger Bask Education Sector Prje c t ....................... 31-May-94 2004/34 293 41A Economic Recavy C redit .......................... 17-Mar-94 200412034 182 25.0 Pakistan Social Action Program Pr3ject .......... ............. 31-Mar-94 2004/2034 1452 200.0 Balochistan Natural Resou;e Management Project ......... 22-ar-94 2004/2029 10.7 14.7 Sindh Specl Developmern Priect . . 16-Dec-93 2004/2028 33.3 46.8 Public Sector Adiustment Credit ......... ............. 14-Sep-93 2004/2028 71.8 100.0 Rwanda Second National Agricultural Rsearch Proet ........... 14-Oct-3 2004033 10.9 15.0 Prvate Sector Development . ....................0.... 09-Sep-93 2004/2033 a 7 12 Senega Economic Rweo very t .......................... 17-Mar-94 20042034 18.2 25.0 Tmrport Sector Adjustent Credit ........... .......... 14-Ja- 012031 2.7 37 Siera Leone Structural Adjusment Credit ........................ 14-Jan-94 2004W233 0.1 0.2 Structural Adjustment Credit ....................... 14-Oct-93 2004/2033 35.9 50.0 Tanzania Second Integrated Roads Project ...................... 07-Apr-94 204M034 123.3 170.2 Agricultural Secor Management Project ................ 20-Ju-93 2003/2033 173 24.5 Togo Togo Urban Development Project ..................... 31-May-94 2004/2033 18.6 26.2 Uganda Second Structural Adjustment Credit ................... 10-My-94 20042034 57.8 80.0 Cotton Subsector Devdopment Project ....... .......... 10-May-94 2004D034 10.0 14.0 Sexually Transmitted Infections Project ......... ..... ... 12-Apr-94 2004/2034 363 50.0 Transport Rehabilitation Project ................... 25-Mar-94 2004/2034 545 75.0 Small Towns Water and Sanitation Project ............... 17-M1ar-94 200U42033 30A 42.3 Financil Sector Adjustment Credit .................... 14-Jan-94 203/20M 3 0.8 1.1 Viet Nam Agricultural ReBbtilitation Priect .................... 25-Jan-94 2004/2033 69.4 96.0 (cntned) 244 IBRDIDAAppendices Statement of IDA Credits Approved -Appendix 8 during Fiscal Year 1994 t Pdncitt angu (millions) CIYtoOieKt rO Bate ot awoinS MUrtdies SOR eqi*atn Viet Nam (coatnuew) Primry EducationPie .......................... 26-Oct-93 2004/2033 49.6 70.0 Higwy Rehabilitaon Project ........... ......... 264-O93 - 2004/2033 1122 15B.5 Yemen Educaion Sector Investment Proje............. ..... 17-F94 2042033 23.9 33.0 Zambia Peldeum Sector Rtbilitaton Project ........ ......... 31-y-94 200424 21.6 30.0 Economic and Soial Adjent CredL ....... ......... 10-ar-94 200W34 108.9 150.0 Prittion and Indusrl Reform iL ...............C . 14-Jan-94 2002/2032 1Z1 6.8 Secod Priizon ad Indusrl Reom CrEdt ....... ... 09Ag-93 2002033 7.0 10.0 Financia and Legal Mngaint Upgtdmg Projec..... 13-Jul-93 203203 12.8 110 an aleT Uga gPOWe ...................................... 413Ju93.6 MM811 Not Samong wih e six repbenti of IA cuts ae expessed in speci draing rghts ISDRs). The US-dlar eated o Ihe oWig palpn anmut dis denominted in SDRs is tu ath.e rate appmved by the creaie board All aets appmved in 6al 1994% m a swim dwge f a,75 perent on te dsbwused and ouWawiding dlan Deils ay not add l totals bese of oundrg AppendIk 9 245 Current IBRD, IDA, and Blend Borrowers Appendix 9 (based on fisca year 1994-97 lendcg pgrogm) June30, 1994 oRD only Algeria Ecuador Lebanon Russian Federation Akgenifm B Salvador Lithunia Sloak Republic Azerbijan Eslonia Maurilms Slovenia Babados Fiji Malaysia Sout Alrica Bebrs Gabon Mexico Swazilnd Belize Guatefata Morocco Thailnd Brazil Hungary Moldova Trinidad and Tob3go Bulgaria Indonesia Panarna Tuisia Chile hak Islarnic epublic ol Paraguay Turkey Colornbia Jamaica Papua New Guinea Tulreistan Costa Rica Jordan Peru Ukaine Croafia Kazastman. Philippines Uruguay Czech Republic Korea. Republic of Poland Uzbeddstan Dominican Republic Laia Romania Venezuela IDA only Albania Congo Lao Peop1e6s Deocatic Republic Seregat rrmenia C6e dhroire Madagascar Sierre Leone Bangadesh Dpibouti Malai- Solomon Islands Benin Eritrea Maldives Sri Lank Bhutan Ethiopia Mali Tajikisan Bolivia Gambia. The Mauritania Tanzania Buridna Faso Georgia Mongolia TogM Burundi Ghana Mozambique Uganda Cambodia Guinea Nepal Vanualu Caineroon Guinea-Bissau Nicaagua Viet Nam Cape Verde Honduras -Niger Wesn Samna Central Arian Republic Kena Nigeria Yeman. Republic oi Chad Kiribati Rwanda Zambia Comoms 3%o Twrt and Printpe Blend countries Angola Egypt Kyrgyz Republic Paldistan Caribbean Region Guyaa Lesotho Znnabwe China India Macedonia, FYR of 246 BRD/fIDAAppedices Development Committee Appendix 10 Comrnuniques, Fiscal Year 1994 Forty-seventh2 meeting. Washtington. in income per capita, and success in reducing September 27, 1993 poverty and in protecting the environment has 1. The 47th meeting of the Development been uneven. Committee was held in Washington DC on Set 5. The Committee welcomes the broadening tember 27, 1993 under the chairmanship of political consensus on adjustment strategies Mr. Rudolf Hommes, Minster of Finance and which stress stabilization and market-friendly Public Credit ofColombia-t The Committee ex- measures, combined with human resource de- tended its thanks to the retiring Chairman, Mr. velopment and poverty alleviation. It believes Ricardo Hausmann of Venezuela. such strategies will succeed over time, if im- 2. GAZA AND THE WEST BANK. The plemented consistently and backed up by Committee welcomed the outstanding contri- structural reforms consistent with long-term bution to the Middle East Peace Process made sustainable development. It therefore urges by the World Bank in preparing the ground for countries which have not yet embarked on the a coordinated program of financial support for adjustment process to fornulate and imple- Gaza and the West Bank. ment their own programs accordingly. The de- 3. WORLD ECONOMY. The Committee sign of adjustment programs and of external reviewed the impact on developing countries of assistance needs to reflect the socio-political recent trends in the world economy- It renewed background and institutional capacity of the its cal for a fresh impetus to growth in the countries concerned. It follows that the best industrial countries, and for a successful con- programs are those which are hone-grown. clusion of the Uruguay Round by the end of The Bank and the Fund (as appropriate) in their 1993 on the basis of a comprehensive and bal- relations with the borrowing countries, will do anced agreement; this is crucial to the growth more to address the impact of macro-econonic prospects for industrial and developing coun- and adjustment measures and their sequencing tries alike. It therefore welcomed the joint on poverty, employment, investment and the statement by Mr. Sutherland, Mr. Preston, environment. Some of the lessons of the East- and Mr. Camdessus, issued on the morning of Asian experience may be relevant to today's its meeting. low-income countries, particularly those of 4. ADJUSTMENT EXPERIENCE OF macro-economic policy, export orientation, LOW-INCOME COUNTRIES AND THEIR human resource development and the training FINANCING NEEDS. The Committee recog- of a professional civil service. nizes that many low-income countries have 6. In many cases, low-income countries win found it hard to make the economic adjustment need to supplement domestic savings with for- necessary to achieve economic and social eign investment and with substantial and timely progress. There are several reasons: the main concessional financial support, together with ones are poor initial conditions; lack of domes- necessary and appropriate relief of bilateral tic savings; lack of adequate institutional and debt To sustain the required levels of external administrative capacity; inappropriate policies support and investment, they will have to which take time to correct; and an unflavorable maintain their commitment to economic re- external environment. Progress in most direc- form, poverty alleviation, environmental tions has been slower than among the middle- soundness, public participation and good gov- income countries, but the preliminary evidence ernance. Donors should focus concessional suggests that countries which sustain strong assistance on the low-income adjusting coun- adjustment policies do better than the rest. In tries. They should complete ratification of these countries there has been significant IDA-10 as early as possible. agree to the broad- progress with macro-economic stabilization and outwardly orientated policies, and in de- r i , . . . ' . '~~~~~ Mr. Lewis T- Pwon, Pesidknt of thrc World Batik. Mr. controlling domestic prices, particularly in ag- MicheCamdessusManangDiornofthI1tenmtional riculture. But even there, financial-sector and MonetaryFund. Mr. PeterSutherland.Director-Gencral of public-enterprise reforms have lagged behind, the GATr. Mr. Mohammed Imady, Ministcr or Economy and private investment has responded only and Foreign Trade of Syrma and Chairman ofatc Group of andwrivhat ionvdeslen haAs a responded irony _4, and Mr. Peter Mountrield. Excautive Seactary. took with a considerable lago As a result, improve- ptt inathe meeting. Observrs from a number of interm- ments have not yet led to a sustained increase tionul and regonal orgainiztions also attended. Appendlx 10 247 est possible spectrum of contributors to the operations in this area. It notes that the Bank's ESAF successor, work for its rapid implemen- Executive Board will be reviewing the strategy tation, and make significant bilateral contnbu- in the Spring of 1994- tions to the SPA. 10. THE COST-EFFECTIVENESS OF 7. SOCIAL SECURITY REFORM AND AID. The Comnittee believes it is more than SOCIAL SAFETY NETS. The Committee ever important to enhance the effectiveness of looked at the continued need for social sup- development assistance. welcomes recent port, both to meet life hazards an d to help those steps taken by the World Bank in this context, hurt by necessary adjustment measures. Many and proposes to address this matter next year. existing insurance structures have created un- In order to provide maximum help to recipi- sustainable burdens on the government budget ents, donor agencies and multilateral institu- and the competitiveness of the formal sector, tions need to maintain and improve their cost- while failing to cover important groups of the effectiveness. population. Existing entitlements may now Il. NEXT MEETING. The Committee will have to be reviewed. In many countries, in- meet again in Washington DC on April 26, cluding economies in ransition, a system com- 1994, when it wil discuss population and mi- bining elements of public and private provision gration issues. will be appropriate, but the mix will vary frnm case to case. The international institutions can orty-eighth meeting, Wasington, help by continuing to provide technical assis- April 26, 1994 tance and policy advice. I. The 48th meeting of the Development 8. In addition to these classical social secu- Committee was held in Washington DC on rity systems, countries engaged in adjustment April 26, 1994, under the chairmanship of Mr. or systemic transformation may require well- Rudolf Hommes, Minister of Fmance and Pub- designed extra social safety nets, integrated lic Credit of Colombia' into their poverty-reduction strategy, involving 2. RESOURCE FLOWS. Ministers wel- schemes such as labor-intensive public works, come the increased flows of resources to de- nutrition programs, targeted food subsidies, re- veloping countries; 1993 was another record training of dismissed workers, and 'sociat year. Particularly noteworthy was the sus- funds.' But governments should avoid creat- tained growth in private flows, which went ing new long-term entitlements which might mainly to the faster-growing and outwardly on- build up future budgetary problems. The ap- ented countries which have implemented suc- propriate mix of measures depends on data cessful reforms. Similarly, much of the availability, administrative capacity, and finan- increase in official flows has been concentrated cial resources. Budget outlays should where on nonconcessional loans to middle-income necessary be realocated to provide financial countries. Much ofthe concessional official de- resources, both for safety nets and for other velopment assistance has been targeted on pro-poor social spending. The poorest among poorer countries, although its total increased them may require continued technical and fi- only modestly in 1993 and the outlook contin- nancial support for such schemes from the ues to be unfavorable. In that connection, Min- World Bank and from donors. The Committee isters welcome the progress made and the welcomes the constructive part played by the increased amounts pledged atlast week's meet- Bank and the Fund in their respective roles, in ing on the Special Program of Assistance for supporting social security system reforms and Africa, and the recent extension and enlarge- establishing and financing safety nets as part of ment of the IMFs Enhanced Structural Adjust- their adjustment lending. ment Facility. 9. WORLD BANK WOMEN-IN-DEVEL- OPMENT STRATEGY. The Commiittee wel- I Mr. Lewis T. Preston. President of the Wodd Bank. Mr. comed a report on the World Bank's attempts wichcamdcsus.iManagingDirecroraftheIntcrnational to integrate gender issues into its overall de- Monetary Fund. Mr. Willy W. Zapata. President of due velopment strategy. It commends the progress Mr. deter and Chairmanoe Groupof24.and made, and welcomes the President's commit- then rting.Obsevem*om anumber of international and ment to a further strengthening of the Bank's regional orgnizations also attended 248 IBRDADA Appendlces Development Commiltee Appendix10 Communiques, Fiscal Year 1994 iconu&Q 3. POPULATION- The Committee re- First, improvements in the primary school viewed some of the issues which will be raised enrollment rate in low-income countries to at the forthcoming United Nations Conference achieve universal primary education; on Population and Development to be held in Second, improving access to famiy planning Cairo in September 1994. They welcomed the and related health services, estimated by UN- Secretary-General of the Conference, Dr. FPA to require a doubling of investments by Nafis Sadik, who addressed their meeting. the year 2000; 4. Trends. The world's population has grown Third, reductions in maternal and child mor- by 1.7 billion in the past two decades. Almost tality in developing countries. all the increase 2s in -the developing coun- 7. Developing countries. In general, the re- tries. The total population now stands at nearly source requirements are affordable, compared 5.7 billion, about a billion of whom still live in with other major expenditure programs. Many poverty. Although the rate of growth is now developing economies can meet the costs. In slowing down, another 2.8 billion will be added some cases costs are already covered by user to the total by 2025, on the current United fees. But for the poorest people, continued Nations "most likely" projections. On this ba- public support will be essential, and isjustified sis, world population will probably double in by the benefits. Ministers agreed that develop- less than 50 years. Ministers agree that the ing countries should considergiving these three massive economic, social, political and envi- objectives priority within total budgets. romnental consequences of these changes can- 8. Donors. The poorest countries will still not be ignored. need help from donors. Bilateral and multilat- 5. Policies. Ministers believe that an inte- eral donors currently contribute about $1 grated population policy in developing coun- billion a year to population programs in devel- tries must recognize the links between oping countries. Ministers hope that many in- econonmc growth, population, poverty reduc- dividual bilateral donors will be able to tion, health, investment in human resources improve the present average 1.25% share of ex- and environmentat degradation. All couples isting aid budgets allocated to population pro- and individuals have the right to decide freely grams, as well as their support for health and and responsibly on the number and spacing of education. their children. Family planning is only one of 9. The World Bank. At the multlateral level, the available instruments and needs to be seen Ministers welcome the increasing share of the in the broader context of changing social pat- World Bank's social sector progams which terns and the increased awareness of women's have risen from 6% to 16% ofthe total portfolio role. Population programs are therefore be- in the past five years. Within this program, coming increasingly diverse, depending on the about $1.8 billion annually is currently allo- stage of the demographic transition in each cated to population, health and nutrition, and country. Moreover, experience demonstrates $1.9 billion to education. Much of this affects that improved education and employment the demand for population services indirectly. prospects (particularly for girls), improved There are currently ten or more projects a year health, and increased income all tend to reduce with significant direct population components. the birth rate- Institutional arrangements for costing $200 million, concentrated mainly in the delivery of servic-s may need to be the poorest developing countries. Ministers strengthened, and must be tailored to local con- welcome the Bank's readiness to respond rap- ditions and needs, taking full advantage of idly to requests for more assistance in this available nongovernmental and private sector field. Ministers recognize that the Bank is not organizations. They must pay full regard to the the principal organization concerned with pop- social and cultural traditions of each country. ulation, but that its policy dialogue and wider 6. Priorities. Ministers note that the Cairo operations give it a unique opportunity to pro- Conference will seek to establish clear and re- mote population policies. They therefore call alistic objectives for future population policy. on the Bank, other donors, the other multilat- Without prejudging the outcome of the Confer- erals such as UNFPA, and the borrowing gov- ence, they agree that three objectives in par- ernments to collaborate fully in operations and ticular deserve special attention: in mobilizing the institutional and financial re- AppendbI 10 249 sources needed; and re-evaluate their efforts 14. Commodities. Ministers also reviewed following the Cairo Conference. recent work in the Bank and the Fund on com- 10. Migration. Ministers discussed the re- modity prices. They agree that despite signs or lated issue of international migration, and its a modest recovery in the shorl term, prices are social, political and financial consequences for unlikely to return to the levels of the 1970s and importing and exporting countries alike. They early 1980s. Given these uncertainties, Minis- note that relatively little is known about the ters agree it would be prudent not to assume an nature of these issues. Ministers noted the need improvement in the long term, and wise to err for policies addressing these issues. They call on the side of caution. for more policy-oriented research on migration 15. Ministers agree that if price shocks are and closer collaboration between the different expected to be only temporary. then provision international agencies concemed. of compensatory finance may be appropriate. I t. TRADE. Ministers greatly welcome the But if the fall in prices is expected to be Pe;r- successful conclusion of the Uruguay Round manent. then an adjustment-oriented response and the agreements reached at Marrakesh and should not be deferred in the hope of a recov- call for their rapid ratification and full imple- ery. Ministers therefore believe that develop- mentation. These agreements reduce the riskof ing country govemrnents should continue to a relapse into protectionism, which would have diversify their economies. They will need the greatly damaged many developing countries ongoing support of the World Bank. the Fund and countries in transition. They open up the and the donorcommunity. Ministers call on the prospect of faster economic growth for the Bank to explore additional measures in its in- world as a whole. All countries stand to gain. vestment work in this area. The continuing vol- For countries to reap the full benefits from the atility of prices also requires the maintenance Round, it is essential that they maintain stable of contingency measures to safeguard pro- macroeconomic environments and intensify grams supported by the Fund. their structural refonn programs and trade lib- 16. Ministers note that few international eraization, while improving their access to commodity agreements have maintained price world markets. levels in the face of fhlling demand, increased 12. Ministers note that some developing production, and lower costs. Government countries may be adversely affected in the tran- price stabilization schemes do not generally sition to the new world trading system, by the work well when commodity prices are ex- loss of preferences or by higher prices for food pected to fall further or remain low; they tend imports, although these effects wiU only be felt to create distortions and place considerable gradualy, leaving time for adjustment. They strain on government budgets. For many coun- urge the Bank and the Fund to take account of tries and products, hedging instruments in these possible adverse effects in designing commercial futures markets now permit pri- country assistance strategies and operational vate agents to protect themselves against price support for the affected countries. fluctuations, although there remain a number 13. Ministers welcome the creation of the of legal, financial and technical barriers. Min- new World Trade Organization. They urge the isters welcome the technical assistance being WTO, the Bank and the Fund to cooperate given by UNCTAD, the World Bank and other fuUly and, within their own areas of responsi- agencies, to help smaller producers overcome bility, to help developing countries and coun- these obstacles and take advantage of such tries in transition to take advantage of the new markets. They welcome the studies being un- market opportunities. They also hope that all dertaken by the Bank of new guarantee mech- developing countries and countries in transi- anisms which would permit these poorer and tion will soon join, so as to increase market less creditworthy countries to undertake access for their exports. They note that both market-based hedging operations. Bank and Fund are engaged in fuller study of 17. DEVELOPMENT BANKS. The Com- the impact of the Round, of future trade policy, mittee agreed in principle to establish a small and of their own future activities in the trade Task Force to review the development role be- area. Ministers will resume discussion of these ing played by the Multilateral Development questions at their next meeting. Banks, including the World Bank. and the four 250 IBRDIADA Appendices Development Commiftee Appendix 10 Communiques% Fiscal Year 1994 fconfinu main regional banks . This Task Force, whose warmest thanks to Mr. Hommes at the cnd of Chairman, terms of reference, and composition his period in the Chair. will be agreed after consultation with the gov-- 19. NEXT MEETING. The Committee ernments, will aim to complete its work by Oc- agreed to meet again in Madrid, Spain, oni Oc- tober 1995. tober 3, 1994, when it will discuss the question 18. CHAIRMAN. The Committee selected of Aid Effectiveness and the work of the World Mr. M'Hamed Sagou of Morocco to be its next Bank and IMF in the light of the Uruguay Chairman in succession to Mr. Rudolf Hom- Round. mes of Colombia. The Committee expressed its 251 Index Accelerated Cofinancing Facilities. 7D-71 World Bank advice on external-debt management, Adjustment lending, 15, 82 (box), 104 7r Africa region Debt-reduction Facility for IDA-only countries. 15, cross-border initiative, 84 17, 27, 72 devaluation of the CFA franc. 24, 27, 81, 83-84 Developing countries, growth in 1993, 23-25. 25 economic perfcrmance in 1993. 24, 7983 (table) health reforms in, 85 (box) Disbursements. See International Bank for Recon- political transition in. 80 struction and Development; International Devel- regional cooperation efforts, 84 opment Association; World Bank Special Program of Assistance (SPA). 71, 79, Disbursements, by source of supply. 57-68 86-87 World Bank assistance strategy toward. 84-87 East Asia and Pacific region Argentina the East Asian "miracle" study, 89 (box) Capital Market Development Project, 55 economic performance in 1993. 23. 88-91 pension reform in, 112 environmental pressures, 92-93 infrastructure bottlenecks, 93 Bangladesh, economic performance in 1993, 97 Pacific islands' performance in 1993, 89-90 Brazil portfolo performane, 94 debt-reduction ageement, 27 (footnote) proges in poverty reduction, 91-929 economiic performance in 1993, 110-111 trade imbalances. 94 trade reform, Ill World Bank operations and strategy, fiscal 1994.94 Economnic Development Institute (EDI) Canbodia activities in fiscal 1994. 156-58 Bank lending initiated to, 90, 91 (box) activities in former Soviet Union, 157 reforn program announced, 91 (bar) collaboration with the Joint Vienna Institute, 158 Caribbean Common Market (CARICOM), 109 McNamara Fellowship Program. 157 CFA firanc devaluation, 24, 27, 81, 83-84 Moscow office opened, 158 Chile, pension reform in, 112 World Bank Graduate Scholarship Program. 157 China Education. See also Humwn resources development economic performance in 1993, 23, 88 World Bank higher-education policies, 34-35 (box) reform efforts in fiscal 1994. 89 Egypt Cofinancing economic performance in 1993, 114 Accelerated Cofinancing Facilities, 70-71 economic reform program, 118 Cofinancing Task Force report, 70 World Bank supervision work. 121 Consultant Trust Fund Program, 72 Energy, Worid Bank work on, 52-53 ECO (expanded cofinancing operations) program. Energy Sector Management Assistance Programme. 72 53 (box) Population and Human Resources Development Environmcnt (PHRD) Fund, 71-72 East Asian pressures on. 92-93 Special Program of Assistance (SPA), 71, 79. executive directors' review of Bank activities, 18 8647 Global Environment Facility, 4748. 55 volume, fiscal 1994, 70 implementation review of the Bank's portfolio of Commodities, primary, price movements in 1993. environmental projects, 45-46 29-30 Mediterranean Environmental Tcchnical Assis- Consultative Group on International Agricultural Re- tance Program. 119 search (CGOAR), activities in fiscal 1994. 4849 review of Bank projects involving involuntary re- Consultative groups, meetings chaired by the Bank, settlement. 44-45 (box) 19 (table) review of cavironmental assessmcnts. 43-45 Country-assistance strategies review of national environmental action plans. 46 executive directors' review of, 18 South Asia's environmental challenges. 99-100 poverty issues addressed through, 36 World Bank environmental strategy in Africa. 85-86 Debt. See also Paris Club World Bank support for environmental actions in overall developments in 1993, 25-28 Europe and Central Asia. 106 252 Index World Bank support for environmental actions in Human resources developmnent the Middle East and North Africa. 119 World Bank overall lending in fiscal 1994 for. 33 Environmentally sustainable development. World World Bank lending for education projects. 39 Bank lending in support of, 49-50 World Bank lending for population, health, and nu- Europe and Central Asia region trition, 39 econormic performance in 1993, 23, 24-25. 101-103 World Bank research on, 158-59 enterprise and financial sector reforms, 103-104 World Bank support for in the Middle East and portfolio quality, 106 North Africa. 119 privatization programs, 103, I4 (box) World Bank women-in-development policy. 36-37 World Bank suppo,t for privatization and financial Hungary, Bank assistance to higher-education re- sector development, 105 forms, 39 World Bank support for poverty reduction. 106 Hunger Conference (Conference on Actions to Re- World Bank support to alleviate infrastructural duct Hunger Worldwide). 12. 39, 49 constraints in, 105 Executive directors India Ad Hoc Committee on Review of Board Cormmit- economic performance in 1993, 24 tees, 21_2 environmental measures undertaken, 99 allocation of IDA relows. 17 flows of foreign direct investment to. 98 Committee on Cost Effectiveness and Budget poverty-reduction efforts, 98-99 Practices. 20-21 reform measures undertaken. 96 Committee on Directors' Administrative Matters. Uttar Pradesh Basic Education Project. 39 2X1 Industriatized countries Committee on Personnel Policy lssues. 21 econonmic perfonnance in 1993. 23, 24 (table) consideration of the Operations Evaluation De- Infrastructure partmcat's activities, 24 - needs in East Asia and Pacific region, 91, 93 country-assistance strategy reviews, 18 pnvate sector financing of. 52 involvement in establishing an independent inspec- World Development Report 1994, 43 tion panel. 17. 74 Inspection panel, 12-13, 17. 74 (box) involvement with the Development Committee. 20 Institutional Development Fund. See Technical as- Joint Audit Commitee, 20. 154 sistance negative-pledge policy modified. 18 Inter-American Development Bank. cofinancing portfolio management oversight, 17 with the World Bank. 70 review ea currency-pool targets, 167 Internal Auditing Department, activities in fiscal rview of the IBRD's capital adequacy. 171-72 1994. 156 review of IDA policies, operaLions, and finances International Bank for Reconstruction and Develop- during IDA-9. 17. 170-71 (box) ment (IBRD) review of poverty-reduction progrss. 17 assistance to the poorest countries. 14 (figure). 15 review of single-currency loan program, 167 borrowings in fiscal 1994. 16. 167. 168-71 Steering Committee, 22 commitments in fiscal 1994. 11 (table). 15. 56. travel to developing member countries. 18 14453 (tables) disbursements. 11 stable). 15, 57. 167 Fimancial sector development capital-adequacy revisw. 171-fl progress of reforms in Europe and Centrt Asia lcn in nonaccruat status. 168 103-104loninnncrastt.16 reforms needed in East Asia. 93-94 membership, 15 World Bank assistarce for, 53-54 net income, 11 (table), 167 World Bank assistance for in Europe and Centrl provisionig for possible loan losses, 167 Asia, 105 review of currency-pool targets, 167 First Annual ESD Conference. 49review of single-currency loan program. 17. 167 -FirstAnnual ESD Conference,49 International Centre for Settlement of Investment Foreign direct investment Disputes (ICSID). activities in fiscal 1994. 165 flows in 1993. 14-iS. 28. 156 international Development Association (IDA) flows to India, 98 assistance to the poorestcountnes 14 figure). 1S flows to Latm Amer;-11, I assistncent autheporety contrisc , 14 g) flows to the Middle Eat and North Africa region, commitment authoity in fiscal 199(. 172 1445 f3 (tables). 172 flows to Sri Lanica, 98 disbursements in fiscal 1992 11 (table). 57 Foreign Investment Advisory Service, 164 **Fifh Dimension" program. 17. 171 Forestry policy, review of acceptance and inplemen- mcmbership. 15 tation, U ninth replenishment progress review, 170-71 (box) tenth replenishment notifications of participation. Global Environment Facility. See Environment 172 Governance, World Bank experience with, 76 (box) International Finance Corpuration (IFC) Grameen Trust, World Bank grant to, 49 activities in fiscal 1994. 163-64 assistance in privatization. 52. 104 (box). Housing Indicators Program. See United Nations colaboration with the World Bank in private sec- Centre for Human Settlements tor development, 50. 51 (box). 52-55 lndo 253 Iran, economic performance in 1993. 114 publications issued in fiscal 1994, 155 role in portfolio managemei., 73. 154 Japan Accelemrted Cofinancing Facilities, 70-71 Pacific island countries, recent economic perrior- cofinancing of World Bank projects. 70 mance, 88-89 Funds for Development Initiative. 70 Pakistan Policy and Human Resources Development environmental measures undertaken, 99 (PHRD) Fund. 71-72 poverty-reduction efforts, 98 Jordan reform efforts in, 96. 98 economic performance in 1993. 114 social action progam (SAP), 40, 98 reform program, 118 Paris Club. reschedulingsorestnicturings in 1993, 27 Participatory developmcnt Kenya, economic performance in 1993. 82-83 Bankwide learing process on. 35-36 effect on project effectiveness, 34-35 Latin America and the Caribbean region Participation Fund, 12, 36 economic performance in 1993, 23-24. 107-108 Participation Sourcebook. 46-47 North American Free Trade Agreement (NAFrA). Peru, pension reforms in. 112 30. 32, 109-110 Philippines, economic performance in. 88 pension reforms in, 112 Population, health, and nutrition. See Human re- poverty levels in, 108 sources development regional integration and trade, 109 Portfolio management World Bank povcrty-reduction strategy in, 109 action plan to improve portfolio management World Bank strategic objectives in, 1 73-75 annual report on portfolio performance, 76, 77, 77 Mediterranean Environmcntal Technical Assistance (b r s io Progaram, 1 19 executtive directors' oversight of. 17 MERCOSUR, 109-110 in the Afiica region. 87 Mcxico. the NAFTA's effect on, 32.1 10 in the East Asia and Pacific region. 94 Middle East and North Africa region in the South Asia region. 100 ecoornepeforanc in199,24114114 (table) in the Europe and Central Asia region. 106 economic performance in 1993, 24,114, ll (all ithe Latin America and the Caribbean region. 113 human resources development in, 116 in the Middle East and North Afnica region. 121 investment-rate increases needed :., i 15-16 Iin population growth in. 153 pro2ram of staff training begun, 162 social indicators lagging in, 116 triting progrm begun by the Ecnomic Devel- - scinctsaign17opment Institute, 157 waier-mannagement needs, 116-17 Poverty assessmnents. 36 World Bank assistance strategy in. 1.7-20 Poverty reduction Mining Conference, 54 monitoring. 33-35, 35 (table) Morocco i 3program of targeted interventions (PTl). 33-34. 35 economic performance n )993, 114 (fabl) World Bank strategy in,r 118 pr in South Asia. 98-99 private sector assessment, 11819 World Bank lending for in East Asia and Pacific, 94 private sector development in, 55 World Bank's progress inreducing poverty. 11. 17. Multilateral Investment Guarantee Agency (MIGA) 36 activities in fiscal 1994. 164-65 support for private sector development. , 50, 54 World Bank researchi on, 1I8 ' ' ~~World Bank strategy in the Africa region, 85 World Bank strategy in the Europe and Central Negative-pledge clause, modifications to. 18 Asia region. 106 NGO-World Bank Committce. 40 World Bank strategy in the Latin America and the Nigeria, recent economic performance. 81-82 Caribbean region. 112 Nongovernmental organiations World Bank strategy in the Middle East and North Hunger Conference involvement. 12. 49 Africa region 119 role in the Global Environment Facility. 42 Word Bank strategy to reducc poverty. 11. 33 role in South Asia. 99 World Bank support for in Europe and Central workshop on participatory development. 36 Asia. 106 World Bank cooperation with. 4042,41 (table). 55 Private sector development North American Free Trade Agreement (NAFTA). Capital Mark-et Development Proect (Argentina). 30. 32. 109-110 55 coordination between the World Bank and the In- Occupied Ternriries ternational Finance Corporation. 50-55 Economic Development Institute assistance to. financial sector policies. 63 157 Private Investment Credit Project (Tunisia). 55 World Bank assistance to. 116-17 (box) private sector assessments 50-51. 51 (box). 113. Opemtions evaluation 11819 activities in fiscal 1994. 154-56 World Bank Group lending in support of. 50 executive directors' oversight of, 1617 World Bank research on. 159 254 Index World Bank support for in Latin America and the movements in volume and value in 1993. 29-30 Caribbean. 113 regional trading arrangements, 32. 101. 109-110 Privatization Trust funds, 71-fl Bank Group assistance for. 51-52, r--73 Trust Fund for Gaza, 116 progress in Europe and Central Asia. 103-104 Tunisia progress in Latin America, 146-47 economic performance in 1993. 114 progress in Russia (box). 104 World Bank operational strategy in. 118 progress in South Asia. 97 Private Investment Credit Project, 55 World Bank support for in Europe and Central Turkey Asia, 105 - economic performance in 1993. 1012 Proiject Preparation Facility. See Technical assis- World Bank lending program in. 105 tance Public Information Center, 13. 17 Uganda reform efforts in. 83 Research program of the World Bank relations with nongovernmental organizations, 40 Annual Conference on Development Economics. United Nations, World Bank collaboration with, 160 39-40 research on environmental issues. 159 United Nations Centre for Human Settlements. research on human resources development. 158-59 World Bank collaboration with. 46 research on macroeconomic issues and economic United Nations Development Programme (UNDP). rmanagement. 15940 See also Consultative Group on Intemational research on poverty reduction, 158 Agricultural Research; Energy Sector Manage research on private sector development. 159 meat Assistance Program; Global Environment Russia Facility Farm Transfornation Study. 47 cooperation with the World Bank in technical as- Moscow office opened by the Economic Develop- sistance. 69 ment Institute. 158 decline in grant financing. 68 recent experience with inflation. 101 privatization programn. 25. 103. 104 (box) Viet Nam unemployment in. 102 resumption of World Bank lending. 90.91 (box) state-enterprise reform. 94 Single-currency loan program, review of, 17. 167 Social assessment gu'idelines. 47 Women in development. See Human resources de- South Africa velopment economic performance in 1993. 24 operational directive on. 37 World Bank capacity building in. 87 World Bank South Asia adjustment lending in fiscal 1994. 15. 56. 104 economic performance in 1993. 24.95- assistance to the poorest countries. 14 (figure). 15 reform efforts in, 96-98 budget, 16. 20-21, 160. 161 (table) poverty-reduction progress in. 98-99 comnitments in fiscal 1994. 15.56,144-53 (rables) environnental protection in. 99-100 commitments. disbursements. net transfers to World Bank lending strategy. 100 - Africa. 86 (table) Soviet Union (forner) commitments, disbursements. net transfers to East Economic Development Institute program in, 157 Asia and Pacific. 93 (table) economic performance in 1993. 101 commitments, disbursements, net transfers to trade contracts in. 101 South Asia. 99 (table) unemployment in. 102 commitments. disbursements, net transfers to Eu- privatization in, 103-104 rope and Central Asia. 105 (table) Specil Program of Assistance (SPA)- See Africa re- commitments, disbursements. net transfers to gion Latin America and the Canbbean. Ill (table) Sri Lanka, foreign direct investment to. 98 commitments, disbursements. net transfers to Middle East and North Africa. 119 (table) Technical assistance disbursements in fiscal 1994. 15. 56-68 cooperation with the UNDP. 69 organizational changes. 163 executive directors' monitoring of. 18 personnel. 160, 162 Institutional Development Fund. 68-69 rehabilitation of main complex. 162 Project Prqeration Facility. 69 staff benefits. 19-20. 21, 162 supplied by MIGA. 165 World Development Report 1993. 38 World Bank activities in 1993. 68 World Development Report 1994. 43 Trade Wor-ld Trade Organization. 32 effects of the Uruguay Round agreement, 30-32. 31 (box)