Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

AnnualReport1970
INTERNATIONAL
WORLD

A-
BANK
DEVELOPMENT
ASSOCIATION
I

i ~~~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ i
 I

£/og~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
C
L
Table of Contents
Page
President'sLetterof Transmittal ........................................ 2
The Record for Ten Years-1961-1970 ........................................ 3
Part One: The Year's Activities .............................................. 5
The Year's Lending:
Introduction . .......................................................... 5
Financing Agriculture ............ ...................................... 7
Financing Education ............. ...................................... 13
Financing Public Services ............................................... 16
Financing Industry ..................................................... 21
New Areas of Lending ................................................. 24
Technical Assistance and Other Activities:
Technical Assistance ............. ...................................... 26
Economic Development Institute ........................................ 28
Aid Coordination .................................. ................... 29
Pearson Commission Report ............................................ 31
Commodity Study-Implementation of Decisions .......................... 31
Economic Studies ............... ...................................... 31
International Investment Insurance Proposals .............................. 32
International Centre for Settlement of Investment Disputes ..... ............. 32
Borrowings and Finance:
W orld Capital Markets ................................................. 32
The Bank's Borrowings ................................................. 35
Increase in Capital: Bank ............................................... 36
Other Financial Operations: Bank ........................................ 36
Income and Expenditure: Bank ... ...................................... 37
Finances: IDA . ........................................................ 37
Organization and Administration:
Staff and Department Changes .......................................... 38
Recruitment . .......................................................... 39
Office Facilities . ...................................................... 40
Membership and Executive Directors:
Membership . .......................................................... 40
Executive Directors .............. ...................................... 40
Audit Committee ...................................................... 40
Part Two: Trendsand Outlook in Development and Development Finance.... ...... 43
Recent Trends in Trade and Growth of the Developing Countries ..... ........... 43
The Flow of External Resourcesto Developing Countries ...................... 46
External Debt of the Developing Countries .................................. 49
Prospects for Domestic Financing of Economic Development ..... ............. 53
Savings Formation by Fiscal Policy ........................................ 53
Savings M obilization by Financial Institutions .......... ................... 55
Urbanization:
Introduction . ......................................................... 57
Urbanization Trends ............. ...................................... 58
Labor Force, Employment and Output Implications ......................... 59
Internal Migration ..................................................... 59
Urbanization and Economic Development ................................. 60
The Urban Economy ............. ................................ ..... 61
The Region . ........................................................... 61
Urbanization Issuesfor the 1970s ........................................ 62
Financing Urban Growth ............................................... 62
Conclusion . .......................................................... 63
Statistical Annex . ........................................................ 65
BankAppendices . ......................................................... 83
IDA Appendices. .......................................................... 97
Bank/IDA Appendices.109
 InternationalBank for Reconstruction and Development
InternationalDevelopment Association

Office of the President

September21, 1970

Dear Mr. Chairman:

In accordance with Section 10 of the By-Laws of the

International Bank for Reconstruction and Development
and Section 2 of the By-Laws of the International Develop-
ment Association, I have been authorized by the Executive
Directors of the Bank and the Association to submit to
the Boards of Governors this Annual Report for the fiscal
year July 1, 1969 to June 30, 1970.
I have also been authorized by the Executive Directors
of the Bank and the Association to submit to the Boards
of Governors, in accordance with Section 19 of the
By-Laws of the Bank and Section 8 of the By-Laws of the
Association, the audited financial statements as of June
30, 1970, and the Administrative Budgets for the fiscal
year ending June 30, 1971. They are contained in the
Appendices of the Report.

Sincerely,

Robert S. McNamara

Chairman
Boards of Governors
International Bank for Reconstruction and Development
and International Development Association

2
 The Record for Ten Years-1961-1970

Expressedin millionsof UnitedStatesdollars

FiscalYear
1961 1962 1963 1964 1965 1966 1967 1968 1969 1970

. World Bank

Loans:Number 27 29 28 37 38 37 46 44 84 70
Loans:Amount $ 61 $ 882. $ 449 $ 810 $ 1,023 $ 839 $ 877 $ 847 $ 1,399 $ 1,680

Disbursements 398 485 620 559 606 668 790 772 762 772
Repayments
to Bank 101 104 113 117 137 166 188 237 298 329

GrossIncome 167 188 204 219 267 292 331 356 410 504
Net Income 63 70 83 97 137 144 170 169 171 213

TotalReserves 602 699 813 846 895 954 1,023 1,160 1,254 1,329

Borrowings:Gross 787 271 121 100 598 288 729 735 1,224 735
Borrowin,gs:
Net 300 104 -5 -32 250 64 503 215 698 299

SubscribedCapital 20,093 20,485 20,730 21,186 21,669 22,426 22,850 22,942 23,036 23,159
i v "i v

MemberCountries 68 75 85 102 102 103 106 107 110 113

IDA

Credits:Number 4 18 17 18 20 12 20 18 38 56
Credits:Amount $ 101 $ 134 $ 260 $ 283 $ 309 $ 284 $ 354 $ 107 $ 385 $ 606

Disbursements - 12 56 124 222 267 342 319 256 143

SubscribedCapital 906 917 969 987 996 999 1,000 1,000 1,013 1,014

SupplementaryResources
and SpecialContributions - - 6 679 756 763 768 773 1,054 1,950

MemberCountries 51 62 76 93 94 96 97 98 102 105

Professional
Staff 317 349 406 444 496 615 685 740 917 1,166

3
,4k, :g iS.,,$tH.S:': .'-T':gS;S',. StC'DE;2: A;. ::t;: tA;:: S::Xt':'S; 'SE:00:f:d :::: 9 0' 0St' CS St :7: C"; ddE f; fft f ?' f; 0' lyS 2 ASS _ S: S W:?S f:7X: '' I

r
'A
X 'St'';:S45;
-'S0'''S0A,0
*';'S-l-''"DS''-
flE.0
Si:
f:4-t'tl:::X;
:7SE,fX
fR
C:
itiSL:
:0<?
;:f;i'S.StiTat'S'S-.'tEt
')-u;-f:NgNG';40:
;'.g:-;\)SED};:4:f\-.;;g;40
gtertX -', '00Wi,''; ffES0i'S0-
;' '00-,000
-i-S.
00000
Ct
;
tiS
0 0 0 01
i'St-00XEE
'\t' X
t0'SS'00S,000X000000000000000S,;fAV000;Vl;SSX
.S'.Q/U;0-zS',.t'.,0S,;;f3S,'g'00.-0d,',00f,'S,i';f;j;'0000;0,00t,0X0'0000.00
Xn'ld S'0' St000r?
0t00 iS t
'; 0\000
'
40:0004i tidi:. it;X0000S:0i.0;-0! 0
X T ;
El;f StSEVT A:tE^:E;^tW; AiS: f s :X0::00 :S :C:;:; 000::f:
I
; _

SE
5,;;At0;E-<
=<nu
4g1;to
-0000
-0:t:;:0->ti
;;ti;: 0;X00S;
0-0 3;
t0-:jf- ;tad;t 0-000
00:
V : ; S ::: S
:St50;Ei ;: SS :00
: i::Yas4-10<
!##|
,f
|
_
a
_
I
*

'';"000000
''r:,.''< tfX:;0 \ ,.-l | ! !
0Mys-iG5: \ -;x4ai-;
i:e0:e 00 |
00;0000
00; | | \ = r \ 0; J: ;E X M
04EF:;0>" 4da>0<Str:ff ,, 000rg 00aji

_;;0
'Yi'i't20'-S0-00-'ti-000

'l00 0;,000000;0 .<.,, 0 \ 0-_ z ;fe;CEf;; 00 <000 <=*f$47gtX70000 0

.f. "fiN>--; R \ 0 000 0 0 0 ; 0

Xw6 *-2><f ;.,.i;,'>,>rr, -d rV i-=fi$fSEF=t>l ;igr )lr.,r -;. 5;M.fJr ?4,t -f f (;gSa k G X

7 X Wf rf<if ,,,,5 9 5S r rEf r g-g r ;,;f<;r ftl,y;ft ff ;|;0;; ;l f i; 001 ;;; t;g f

=X? of ;0,Sr3;0<. gfi5f;<;2- ir;$C:-;t: t fWr.. ::E-

' 6 if i ,_, ,:J-0i i ,i 9;l>, 3:i;;,:i,92,S,,:ii§:;0 5 0; ................................................................................................................................................................. 0 0>: f 0tr;0 000 00 0;0:;R-0000040 i;000

r,,,,6,, f ,,f ',r f<>,6 r 6s705? 6 < f 6 ;t 0 0 \ ' k'f 0 0 0 '

.l__;ue.r-E
;,.->
f
!k,,,
.a6
dB6
;1.6:ffi.;
d6
6kf
f,-.gd
...
$e 2; > ;;;
e8gfaSi,S :;;.
ok,,;
''0zL' ':.St:f:
;,S:::
f;
WS -it:
A0S:,::::t:
SE:
PART1:
THEYEAR'SACTIVITIES

The World Bank Group again substantially in- only a 3/4% a year service charge) provides the
creased both the volume and the range of its Association's member countries which are in the
activities in the 1970 fiscal year. Each of the three most difficult circumstances with a supplement or
institutions of the Group approved commitments alternative to the Bank's own loans, the interest
involving considerably more finance for economic rate on which rose from 61/2% to 7% during
development than in any previous year; the com- fiscal 1970.
bined total of commitments in member coun- Negotiations were undertaken during the year
tries amounted to $2,297.8 million in the year for a third general replenishment of IDA's re-
ended June 30, 1970, representing an increase of sources. These negotiations were successfully con-
22% on the previous year's total (itself a record) cluded soon after the end of the fiscal year. The
and of about 100% on the average for the five- Association's 18 Part I (donor) member countries,
year period 1964-68. In addition, the Bank lent a together with three Part II member countries and
second $100 million to its affiliate, the Interna- one non-member, agreed to a replenishment
tional Finance Corporation (IFC-see below). which would provide IDA with new funds of
New loans and credits made in fiscal 1970 by rather more than $800 million a year for three
the Bank itself and its affiliate, the International years, beginning late in 1971. Agreements were
Development Association (IDA), totaled $2,186 also reached dealing with member countries' vot-
million, excluding the Bank's loan to IFC. Com- ing rights. Further details relating to these agree-
mitments for agricultural development and infra- ments are given on page 38 of this Report.
structure projects rose particularly rapidly during The third member of the Bank Group, the Inter-
the year; in geographical terms, lending to devel- national Finance Corporation (IFC), which helps
oping countries in the Western Hemisphere and to finance productive private enterprise ventures
in Africa showed a marked expansion. Bank loans in the developing world, made investments total-
made up $1,580.4 million of the two institutions' ing $111.8 million in 1970. The Corporation's ac-
lending total for economic development purposes tivities have grown sharply over the past two years;
in member countries; the remaining $605.6 mil- to ensure that IFC should have adequate resources
lion was made available in the form of IDA for further expansion, the Bank made available to
credits. IDA finance (which bears no interest and IFC a loan of $200 million during the year, which
incorporated and replaced a $100 million loan
which was made in 1966. IFC's financing activities
Venezuela-Water Supply. Checking air valveson the during fiscal 1970 are summarized on page 24 of
Tuy No. 2 pipeline, which carrieswaterto Caracas,a this Report; details of the Corporation's work are
short distancefrom the LagartijoReservoir.To help available in its own Annual Report.
double the watersupply to the Caracas Metropolitan
Zone, with a population of nearly two million, in 1966 The further growth of Bank Group assistance to
the World Bank madea loan to Venezuelaof its developing member countries in the year ended
$21.3 million. June 30, 1970, took place against the background

5
 IDA FINANCING 1961-1970-SOME EXAMPLES
IDA made its first developmentcredits in fiscal1961.During the pastten yearsIDA hasmade
221 commitments, totaling $2,773.1million net in 55 countries, for agriculture, education,
transportation, electric power, water supply, telecommunications,industry, and project
preparationand technical assistance. Among other things, IDA credits made asof the end of
fiscal year 1970-alone or with supplementaryfinance from the World Bankor other lenders,
and together with the contribution of the borrowing country-are helping to finance
projects for:
-Bringing under cultivation or improving more than 22,004,750acres for agricultural
purposes, including: through irrigation-6,127,000 acres in the Republic of China,
India, Pakistan',Ceylon, the Sudan and Turkey; through flood protection and drainage-
12,672,000acres in India, Pakistan,the United Arab Republicand Indonesia;through land
development (mechanization,cooperatives,plantations)-1,797,840acresin Africa and Asia.
-Construction or improvement of more than 15,030 miles of roads in Asia, Africa, Latin
America and the Middle East;the engineeringof more than 3,709 miles of roads; and the
improvementof road maintenanceoperationsin many of the countries involved.
-Improvement and expansionof railroads in four countries by the provision of more than
5,440freight cars, 250 passengercars,track signaling devices, electrification and workshop
equipment, as well ascomponentsfor the domesticconstructionof hundredsof locomotives,
thousandsof freight and passengercars.
-Port improvementsin six countries by constructionof ship berthsand passengerand cargo
building and by provision of new dredges,harbor craft, navigationaids and other equipment.
-Installation of about 919,000kilowatts of electric generatingcapacity and the extension
of transmissionlines in sevencountries.
-Improvement and expansionof water supply systemsin 16 cities with a total population
of over 6,000,000located in six countries.
-Construction, expansionand/or equipping of 627 generalsecondaryand specializedtrain-
ing schools, 52 teacher-trainingcolleges,and eight agricultural universities.Theseprojects,
in eleven African, three Asian and two South American countries, will enable enrollment
to expandby 148,900in generalsecondaryschools;31,100in technical and agriculturaltrain-
ing schools; 7,700in teachertraining colleges;6,200 in agricultural universities.
'in addition,IDA is a contributorto the $1.2billion IndusBasinDevelopmentFund,whichis financingprojects
acresin WestPakistan.
to irrigateabout5,000,000

of a number of studies of the development effort of its own work in the field of economic develop-
as a whole, sponsored both by individual govern- ment; it has taken active steps during the year
ments and by multilateral agencies. The Bank itself under review to do so, in the light of its own ex-
sponsored one such study ("The Pearson Report" perience and the general appraisals undertaken
-see below, page 31). The consensus of these by others.
reappraisals was that notable successes had al- The development picture was marked by a num-
ready been achieved; at the same time, a further ber of encouraging advances during the year. The
intensification and coordination of effort, on the economic growth of the developing world as a
part of international institutions and individual de- whole continued, with an increase of 6.7% in the
veloped and developing countries alike, would be combined gross domestic product of the devel-
required in the years to come. The challenges oping countries in 1969. During that year these
facing the developing world are becoming clearer; countries' exports rose by 9%, assisted by the
consequently it is becoming possible to frame and continuing rapid growth of world trade as a whole,
execute new, more comprehensive strategies to and high prices for a number of basic commodi-
meet them. The Bank Group is deeply conscious ties. The creation or improvement of countries'
of the need to enhance the quality and quantity infrastructure, essential for future development as

6
well as for current needs, continued. Several coun- The Year's Lending
tries achieved significant increases in agricultural
production, and a number also made substantial Financing Agriculture
advances in industrialization. The continuation
during 1969 of flows of external funds into the de- Bank and IDA lending for agricultural develop-
veloping countries has helped to provide them ment rose sharply to a new record level in fiscal
with useful new sources of employment and in- 1970: 32 loans and credits, with a combined value
come for their citizens. The developing countries of $412.9 million, were made during the year
are becoming increasingly able to use new capital, for agricultural development projects. In addi-
public and private, productively as their mana- tion, two IDA credits, totaling $3.2 million, were
gerial and organizational capacity increases, and made for project preparation in this sector (see
as infrastructure projects initiated in earlier years below pages 26 and 27).
come to fruition. The cumulative total of funds committed for
Thus the judgment of the Pearson Commis- agriculture by the two institutions amounted to
sion and others that the development effort has nearly $2,000 million as of June 30, 1970. About
achieved real gains and, given the right policies, 400% of this total-some $780 million-has been
can continue to do so on an increasing scale, was lent in the last two years. This rapid expansion of
corroborated in the year under review. At the lending reflects not only the special emphasis
same time, the need for intensified effort on the which the Bank has decided should be placed on
part of both providers and recipients of develop- this sector, but also the recent emergence of en-
ment assistancewas underlined by the persistence couraging new opportunities for the productive
of a number of fundamental constraints which still use of agricultural finance. The development of
hold back economic growth in the developing new high-yielding foodgrain varieties, the estab-
world, and which have not diminished signifi- lishment or expansion of effective institutions for
cantly during the year under review. Although channeling investment credit to individual farm-
manufacturing is assuming increasing importance ers, and the successes achieved in programs for
in a number of the Bank's member countries, the the profitable expansion of livestock production
majority are still dependent on exports of primary are among the factors which have made notable
products. At the same time, problems of access increases in agricultural investment feasible.
to markets in the developed countries (which are The geographical distribution of Bank and IDA
becoming increasingly important as outlets for the agricultural lending continued to broaden in fiscal
exports of the developing countries taken as a 1970. Loans or credits were made to seven coun-
group) continue. These countries' needs for new tries which had not previously received agricul-
high-priority development projects and for better tural loans or credits from the Group-Afghanistan,
employment and income opportunities for their Ethiopia (2), Ghana, Honduras, Niger, Spain and
citizens remain pressing; such needs are increased the United Arab Republic. By the end of the year
in many countries by high rates of population the Group had over -120 on-going agricultural
growth which put additional strains on already projects under supervision.
scarce resources. Further improvements in the mo- The largest proportion of Bank and IDA lending
bilization of domestic resources and in the volume for agriculture during the year under review was
and terms of the flows of external assistance to provided for irrigation projects. Adequate water
meet these needs are urgently required. The debt supplies are essential for the expansion of agricul-
service problem, already serious for several coun- tural output, but less than 15% of arable land in
tries, is likely to become more difficult for a num- the developing world is currently irrigated. The
ber of them; analysis of the structure of existing scope for productive investment for this purpose
debt provides some disturbing implications for remains very great.
the future. The loans and credits which made up the record
It is against this background, of much solid $207.7 million provided by the Bank and IDA for
achievement but of a number of continuing prob- this purpose ranged in value from a $46 million
lems, that the World Bank has consolidated and Bank loan to Morocco for the integrated develop-
expanded its contribution to the world economic menit of irrigation and dry farming in the Sebou
development effort during the year under review. Basin to a $2.5 million IDA credit for drainage and
The Bank expects its activities to increase still flood control in Ceylon. A $26 million IDA credit
further during the years to come, in coopera- to the United Arab Republic for the drainage of
tion with its developing member countries, and nearly a million acres of land in the Nile Delta will
with the development assistance efforts of indi- benefit some 250,000 farming families and will
vidual developed countries and other interna- form part of the largest tile drainage system in the
tional organizations. world. A second lending operation in Ceylon, a

7
 Bank LoansandlIDA Credits 1969/7 by Area
Expressedin
millionsof US dollars

BaskLoans 'IDACredits Total

Number Amount ~NumberAmount Number Amou
nt

Botswana.$ - I~ ~~~~~~~~~~~~
$ 2.50 1 $ .5
Burundi.- ~......- 1 0.38 1 0.38
Cameroon.....2 I7.20 2 17.50 4 34.70
CentralAfrican.Republic - -. 1 ~ ~~~~
4.30 ~ 1 4.30
Congo,
of Democratic
. Rep. - - 1 ~~~~~
co ~1 ~~5.5.00
Congo,
People's
of Republic - 1 ~ ~~~~
1.50 1 1.50
N~ ~ tioi. - N66 2 66

4 Kenya.2 .... 26.10 1 61 22

Keny,
Tazani, andUgna3 8V.0A 3 87.80
Liberia.1 7.40......-M1 7.40
MaaayRpblic.t.- 1 .6 9.60
Malawi.-- 1 .2 5.25
Mali.- - 1 ~ ~~~~~
7.7A ~ ~ ~~~~
7.70
Morocco.3 ~~~~~~~ 130~ ~~~~~68.0
0 47.60
Niger..- 1 ~~~~~ ~10.58~
~~~~~~~~~~~0.58
Nigeria.2 ~~~~~~~~~ - ~~~35.6035.60
Rwanda.- -1 9.30 1 ~~~~~~~~~~~~~~~~~~9.30
Senegal..- ~ ~ ~~~~
2.10 ~ ~1 ~~ ~~~~~~~1
2.1
Tanzania.- 1 7.0 17.5
Tunisia.1 10.00~~~~~~~~O
1 1050 2205

Afghanistan - .. $ 5.0 1 $ 5.0

Ceylon.~~ ~~~~~~~~3
43.50 2 17.00 5 60.50
( China.~~ ~~~~~~~~
71.50 ~~3
- 3, 71.50 -
India.1 ~~~~~~~ 5 ~~~~~~40.0
227.50 6 26.0
Indonesia.- ~ ~ ~~~~~
- 80.50 ~ ~4 ~ ~~~4 8050~
han.2 48.50 ~~z~2 -.-. 48.50 -.
Israel.1 ~~~~~~~~~2-. ~ ~~251.00 1250
Korea.1 40.00 1 15.00 2~~~~~~~~~~~WO
55.00
Malaysia.2 21.50 - ~ ~2 ~ 21.50 -.-.
Nepal.- ~ ~ ~~~~
- 1.70 ~ ~1I.7 ~ ~~~~~~~1
Pakistan.1 19.20 9 77.20~~~~~u
10 96.40
Papua
Guinea.1
andNew ~~~~4.5012 ~ 9.50 "3 14.A
Philippines.2 59.00 ~22 - 59.00 -
Singapore.2 1~~~~~~~~~~~~6.00-. 2 16.0
Thailand.1 4~~~~~~~ ~~~~6.50146.50
--

Europe ~~~~~~~~~20l
$ 435.20 25 $3.0 4 868.60

Greece.1 ~~~~~~~~ -. ~~~20.00F-

1 00

LatinAmerica
& Caribbean 7 $ 160.50 77 7 M$16.5
Argentina.1 $ 60.00 - $ .- $~60.00
1~~~~~~~~~
Bolivia.1 ~~~~~~~ ~1 ~~~23.25!
1.40 2: 24.65~
Brazil.3 2~~~~~~~~
00 ~~~05. 3
. 205.'00
NJ Chile.3 ~~~~~~~~~~~~19.30 319.30
--
Colombia.~~ ~~~~~~~5
17.160 --- 5 127.60
CostaRica.3 ~~~~~~~~34.20 -. 3 34.20
Dominica
Republic~.1 50 -1 25.00
Ecuador.- .- 1 1.50 1 ~~~~~~~~~~~~~~~~~~1.50
Honduras.1 ~~~~~ ~2 ~ ~~~~~5.5
8.0 13,60
Mexico.~~ ~~~~~~~~2
146.80 -- 2 168
Panama.1 42.00
b - ...- 1 42.0

24$702.95 ~4 $1.0 28 $ 7113.5

Intrnaionl
Fnane Crporation $10.0 - $ 1 $0.0
TOTALS.~~~ ~~~70
$,8.5 56 $4605.61 12 $,25.6
8~~~~~~~~~~~~77
joint Bank/IDA commitment of S29 million, is de-- above subsistence levels. At the same time, atten-
signed to help finance a multipurpose project for tion must be paid to the provision of technical
irrigation and electric power generation; the irri- advice to farmers receiving credit.
gation component of the project should substan- The five Bank/IDA commitments made to insti-
tially raise the output of some 10,000 farmers. tutions providing credit for crop development in-
Loans and credits were also made for irrigation to cluded the Group's first measures of assistance
India, Indonesia, Pakistan (2) and the Philippines. to agriculture in Afghanistan and ,Niger, and its
Sustained increases in agricultural production first agricultural credit projects in /ndia (where
generally require extensive investment by individ- two such projects were approved during the year)
ual farmers in on-farm improvements and new and Iran.
inputs. Most farmers in the Bank's developing Projects in the field of agricultural develop-
member countries, lacking the resources for such ment, as in other sectors, must take account of
investment, must depend instead on the availabil- the need for increases in domestic cash incomes,
ity of investment credit to finance improvements. and foreign exchange earnings from exports (bear-
The Bank and IDA attach great importance to the ing in mind current world market conditions, in-
development of such credit facilities, and have cluding questions of access to markets in the
undertaken eleven lending operations for this pur- developed countries and the impact of new pro-
pose during the fiscal year, with a total value of ductive capacity on market prices). They must also
S129.7 million. $74.6 million of the total was take into account ways of utilizing unused or
provided for general crop development credit underused resources in developingcountries. Bank
projects and $55.1 million helped to finance spe- and IDA lending for projects to provide credit for
cialized livestock credit. livestock development, which is mainly designed
The provision of finance for investment credit to raise countries' export earnings, can also pro-
has a number of special advantages. It is inherently vide benefits through improvements in the nutri-
selective in favor of the most innovative and effi- tional content of local diets. Livestock projects
cient farmer; at the same time it provides his col- essentially provide credit to ranchers for farm im-
leagues with a valuable demonstration of the provements, better stock and technical services.
results which can be obtained through investment The Bank and IDA will often assist borrowers in
in on-farm improvements and new types of input.
Moreover, the fact that the borrowing farmer is Loansand Credits: AGRICULTURE
expected to pay back his loan out of higher pro- (Million US dollars)
duction encourages him to use the resources at ; . - -
his disposal efficiently. '
The Bank and IDA, when lending to credit insti- ' s- , 7;
tutions, take great care to ensure that the insti- a,
tutions themselves will be properly managed; in.
particular, the Group satisfies itself that proper
technical evaluation procedures are observed, and _ .,.
that the institutions' terms and conditions of lend-
ing are realistic. It will help institutions to improve
their performance in these and other respects x'
where necessary. *
The availability of agricultural credit for crop
development is assuming increasing importance
with the technological advances of the "Green
Revolution." As a consequence of the new tech-
nology, farmers who were previously barely able i<
to produce enough to live can now achieve sharp AlJ

increases in production; these formerly marginal

farmers are therefore able for the first time to take
advantage of the facilities for investment in on- -
farm improvements offered by credit institutions.
The Bank Group believes that soundly based, well
regulated credit institutions can have a catalytic ' ' A .
effect on farming methods in whole regions w,here 1964-68 969 .1970
all but the richest farmers would otherwise be kverage
unable to take advantage of recent advances in.
agricultural technology to raise their production

9
 -Bank Loansand IDA Credits 1969/70 by Purpose
Expressed
in millions
of US dollars

Bank IDA Total

Agriculture
Afghanistan-Agricultural credit.......... .......... $ 5.00 $ 5.00
~Bolivia-Livestock...... .I..~I.................1.40 1.40
Ceylon-I rrigationanddrainage.................... 13.60 5.10 18.70
Ceylon-Drainage,.... ... ..... ....- 2.50 2.50
Colombia-Livestock.................... 18.30 - 18.30
Ecuador-Livestock....- 1.50 1.50
Ethiopia-General agricultural development....... .- 3.10 3.10
Ethiopia-General agricultural development- .. .... 3.50 3.50
Ghana-Fisheries......... ......... 1.30 1.30
Ghana-Cocoa prodiuction......_-......-.........8.50 8.50
onduras-Livestock;..............-......o.- 2.60 2.60
India-Irrigation,. .......-..... I.....35.00 35.00
~~~ I~~ndia-Agriculturalcredit..-.........I....35.00 35.00
India-Agricultural credit..... .-........ 27.50 27.50
Indonesia-Agricultural estates..I...... ......... 17.00 17.00
Indonesia-irrigation,... ..... - 18.50 18.50
Iran-Agricultural credit................. 6.50 - 6.50
IvolryCoast-Cocoa producti'on. ................... 7.50 - 7.50
Kenya-Forestry..........._..... 6.... .... 2.60 - 2.60
Malaysia-Land settlement anddevelopment....... .
I..... 13.00 - 13.00
Malaysia-Forestry ......... .. 8.50 - 8.50
Morocco-Irrigation.. -- ................. 46.00 - 46.00
Niger-Agricultural credit. .......... -....... - 0.58 0.58
Pakistan-Irriation ................. 13.00 13.00
Pakistan -Irrigation... ... 14.00 14.00
PapuaandNewGuinea-Oilpalm,coconuts andcattle ........ . 5.00 5.00
Philippines-irrigation.. ,.....-..... ........ 34.00- 34.00
Spain-Livestock.. . ..................... 25.00 - 25.00
UnitedArabRepublic-Drai'nage ..... I...........- 26.00 26.00
Uruguay-Livestock. . . -................... 6.30 - 6.30
Zambia-Comnmercial farming ... I............1 .... 5.50 -5.50

~ ~~
Education ~ ~ ~ ~ ~ ~ ~ $186.80 $226.08 $412.88
CaImeroon...... ..... $10.50...10.50
Chile. ..... .... .... 1.50 -15

Chile... . . . . . . .. . . . . . . . . . . . . . . . . 7.00 -7.00

China . . . .. . . . . . .I . . . . . . . . . . . . 9.00 -9.00
. . .~~~~~~~~~..
Colombia .... ...... ... 6.50 -6.50
Ivory Coast......... ..... 11.00 - 11.00
Kenoya .. . . . . . . . . . - .. . . . . . . . . . . . 6.10 6.10
Pakis ..-.. . . . .. . . . . . . .. . . . . . . .8.00 8.00
SierraLeone .. . . . . . . . . . . .. . . . . . . . . . . . 3.00 3.00
~..~,~. ~ .. ... ....
Spyain~ .. ...... . I. 12.00 - 12.00
Zambia .... . . . . . . . . . . . . . . . . . . . . . .. 5.30 -5.30

$ 52.30 $27.60 $ 79.90

Telecmmunications
CostaRica......... ... .... ...... .. $ 6.50 $ - $ 6.50
Kenya, Tanzania andUganda .. ............... 10.40 - 10.40
Nepal.I-.. . . . . .. . . . . . I .. . . . . .1.70 1.70
Pakistan .. . . . . . . .. . . . . . . . . . . . . . . . .- 15.00 15.00
Singapore~ .. .... I......... 11.00 - 11.00
Yugoslavia ...... .... ...... .. 40.00 -40.00

$ 67.90 $16.70 $ 84.60

Transportation
Bolivia-Natural gaspipeline, .... . ........ $ 23.25 $ - $ 23.25
Brazil-Roads . ; ...................... 100.00 - 100.00
Cameroon-Roads.. ~.~... -.. 1 -.......... O... 12.00 7.00 19.00
Cameroon-Railways ..... -......... ....... 5.20 - 5.20
CentralAfricanRepublic-Roads................- 4.30 4.30
Chile-Roads........... 10.80 - 10.80
Colombia-Roads...32.00 - 32.00
Congo,
People's
Republic
of-Roads.
....... ...... I..........- 1.50 1.50
CostaRica-Roads. ~.~......-1.........- ... 15.70 15.70
Gambia,The-Port....;. . ...................- 2.10 2.10
India-Railways. . ............... ...... I .- 55.00 55.00
Iran-Roads............. ...... ..... 42.00 - 42.00
Kenya-Roads,.......................... 23.50 - 23.50
Kenya,Tanzania andUganda-Ports.~...............
. 35.00 - 35.00
Kenya,Tanzania andUganda-Railways........ ........ 42.40 - 42.40
Korea-Railways............ ....-..... ~W.. 40.00 15.00 55.00
MalagasyRepublic-Port........ I.........- 9.60 9.60
(continued)
10
Bank Loansand IDA Credits 1969/70 by Purpose(continued)
Expressed
in millionsof US dollars

Bank IDA Total

Mali-Roads ................... . $ - $ 7.70 $ 7.70

Mexico-Roads . . ................. 21.80 - 21.80
Morocco-Roads . . .............. 7.30 7.30 14.60
Nigeria-Roads . . .10.60 - 10.60
Nigeria-Roads, railways andports . . .25.00 - 25.00
Pakistan-Natural gaspipeline . . .19.20 - 19.20
PapuaandNewGuinea-Roads . ............. ...... ...... 4.50 4.50 9.00
Paraguay-Roads . . .............. 6.00 - 6.00
Rwanda-Roads . . ............................................ - 9.30 9.30
Senegal-Roads . . ............................................- 2.10 2.10
Tanzania-Roads .................. ............................- 7.50 7.50
Uganda-Roads . . . - 11.60 11.60
Yugoslavia-Roads . . .40.00 - 40.00
$ 516.25 $144.50 $ 660.75
ElectricPower
Argentina .. $ 60.00 $ - $ 60.00
Brazil . . .80.00 - 80.00
Ceylon................................................ 0.90 9.40 10.30
Ceylon... ........................ ................. .... 21.00 - 21.00
China. . .44.50 44.50
Colombia.. ..... .................. ................... ... 52,30 - 52.30
CostaRica . . .12.00 - 12.00
Cyprus . . . 5.00 - 5.00
Honduras .. . . 5.50 5.50 11.00
Indonesia ..... - 15.00 15.00
Liberia
..... . . .................................................. 7.40 - 7.40
Malawi............. . ......................... .......- 5.25 5.25
Mexico . ... 125.00 - 125.00
Panama .... 42.00 - 42.00
Thailand .. 46.50 - 46.50
$ 502.10 $35.15 $ 537.25
Industry
Brazil-Development finance company .$ 25.00 $ - $ 25.00
Ceylon-Development financecompany . .8.00 - 8.00
China-Development finance company . .18.00 ..-.. 18.00
Congo, Democratic Republic of-Development finance company - 5.00 5.00
Dominican Republic-Facilities for nickelminingproject .............. 25.00 - 25.00
Greece-Development financecompany . . 20.00 - 20.00
India-Development finance company ............... ............... .00 - 40.00
Indonesia-Fertilizer plant................................-....... .30.00 30.00
Israel-Development financecompany . .25.00 - 25.00
Morocco-Development finance company . ............... 15.00 15.00
Pakistan-Development financecompany ........ . ...... ' 20.00
Pakistan-Small industries ................. . - 3.00 3.00
Philippines-Development financecompany ... 25.00 - 25.00
Singapore-Development finance company 5.00 - 5.00
Tunisia-Development finance company, 10.00 - 10.00
Yugoslavia-Automotive andsteelindustries . . , 18.50 - 18.50
$ 234.50 $ 58.00 $ 292.50
ProjectPreparation
Botswana-Infrastructure for miningproject .$ - $ 2.50 $ 2.50
Burundi-Road engineering andmaintenance study .... - 0.38 0.38
Ghana-Road engineering .. ... - 1.50 1.50
Pakistan-Agricultural engineering .- 0.80 0.80
Pakistan-Agricultural engineering ... , - 2.40 2.40
Pakistan-Port engineering . .......................... ...,.,.,.- 1.00 1.00
$ - $ 8.58 $ 8.58
WaterSupply& SewerageSystems
Colombia-Water supply . .$ 18.50 $ - $ 18.50
Ghana-Water supplyandsewersystem - .. . . - 3.50 3.50
Tunisia-Water supply ................. . .................-
....... 10.50 10.50
$ 18.50 $14.00 $ 32.50
Family Planning
Jamaica .$ 2.00 $ - $ 2.00
General Development& IndustrialImports
India-Industrialimports$ .....................
..................$ -. $ 75.00 $ 75.00
InternationalFinanceCorporation
.$ 100.00 $ - $ 100.00
TOTALS $1,680.35 $605.61 $2,285.96
11
setting up the institutional framework needed to ment. Apart from its lending for irrigation and
ensure successful management and administration credit, the Bank directly assists cash crop produc-
of the project. tion through its selective lending for productive
As noted above (page 9), Bank and IDA lend- general agricultural development projects. Proj-
ing for livestock projects totaled $55.1 million in ects of this kind, designed to stimulate output of
fiscal 1970. Of the six projects assisted, four, in existing cash crops or to diversify production into
Bolivia, Colombia, Ecuador and Uruguay, repre- new crops with export or domestic salespotential,
sented continuations of existing livestock develop- often involve relatively small loan amounts and
ment programs; the Bank's $25 million loan to may require particularly lengthy preparatory work,
Spain and the $2.6 million IDA credit to Honduras but they can have a quite disproportionately large
were the Group's first measures of agricultural impact on the agricultural economy of the country
financing in these two countries. concerned. This is especially true where, as in the
The development of a market-oriented agricul- majority of Bank or IDA operations, the project
ture producing cash crops for domestic and export concerned is designed to assist smallholders to
sales is central to successful agricultural develop- increase their output and earnings. In preparing

(2t;0
prjet toaln $11

June30, 1968-

:tf:::fiscal years up to June30, 1970-

12
such projects,the key problem is how to graft the tion for purposesincluding vegetableprocessing
production of a new crop, or intensiveproduction and marketingfacilities, grain storage,aerial crop
of an existing one, on to often complex existing sprayingand fisheries.
agricultural institutions or methods of work. The Specificagriculturalprojectsshould not be con-
project must take into accountthe national or re- sidered in isolation, but rather in the context of
gional agricultural policy frame within which it countries' overall agriculturalprospectsand prob-
will have to operate; measuresof institutional re- lems. To facilitate the development of an inte-
form, or changesin credit, marketing, price or grated sector-wide agriculturalstrategy,the Bank
fiscal policies may be required. has begun to undertake comprehensivesector
It is precisely becauseprojects for cash crop studiesin a numberof member countries,and ex-
development involve considerationof these diffi- pectsto continue and extend such studies in the
tult topics,and mayentail reshapingof patternsof coming years.
agrarianlife in the direction of a market-oriented Projectidentification and preparation remained
agriculture, that the Bank considersthem to be an important activity during the year. The Bank's
worth the amount of time they take to prepare. permanentmissionsin Easternand WesternAfrica,
Agriculture remainsthe dominant sector of activ- stationed in Nairobi and Abidjan, continued to
ity in most of the Bank's developing member assistgovernmentsin the preparationof projects
countries, often providing a living for two-thirds in Africa, while the Bank'sAgricultural Develop-
or more of the population. The achievementof ment Service,with headquartersin Nairobi, again
significant overall economic growth depends di- provided African countries with managementas-
rectly, therefore, in many countries on the trans- sistancefor projectswhere necessary. The Bank's
formation of agriculturefrom a subsistenceactivity cooperativearrangementwith the Foodand Agri-
to an income-earningone throughwell conceived, culture Organizationof the United Nations(FAO)
economicallysounddevelopmentprojects,having continuedto operatesatisfactorilyduringthe year.
due regardto market possibilities. FAO sent 76 missionsto developingcountries for
Bankand IDA lending for general agricultural this purpose,and FAOstaff membersparticipated
development totaled $74.2million in fiscal1970. in 36 of the Bank'sagricultural missionsduring
The ten loans and credits provided include two the year.
IDA credits to Ethiopia totaling $6.6 million to
help raise production of a variety of cash crops FinancingEducation
for domestic and foreign consumption; an $8.5 The Bank Group began lending for education
million credit to Ghanaand a $7.5 million loan in 1962. By the end of the 1970 fiscal year, the
to the Ivory Coast for expansionof those coun- cumulativetotal of Bankand IDA educationlend-
tries' cocoa industries; a $17 million credit to ing amounted to over $320 million. About half
Indonesia for the second stage of a program to this total hasbeen committed during the last two
rehabilitate rubber estates;a $2.6 million Bank fiscal years. Eleven commitments totaling $79.9
loan to Kenya for forestry development (whose million were made during the year under review
output will be used in a pulp mill which is being to ten countries, five of which-Cameroon, the
assistedby an IFC investment);two loans to Ma- Republicof China, the Ivory Coast,Sierra Leone
laysia totaling $21.5 million for forestry and for and Spain-received loans or credits for educa-
the second stage of a settlement and crop de- tion for the first time. The five other countries
velopment project in the JengkaTriangle; an IDA assisted-Chile (2),Colombia,Kenya,Pakistanand
credit of $5 million to Papuaand New Guineafor Zambia-had receivedearlier education loansor
coconut,oil palm and livestockdevelopment;and credits from the Bankor IDA.
a $5.5 million Bank loan to Zambia for commer- The need for improved educationalfacilities of
cial farming. Six of the ten projectsare in Africa; all kinds throughout the developingworld is very
ltans and credits for the development of cash great, and the BankGroup recognizesthat its as-
crops form a large proportion of Bank and IDA sistancecan fulfill only a small part of countries'
agriculturallending in Africa, which hasincreased overall requirementsin this sector. But the short-
particularly rapidly during the last two years (see age of indigenoustrained manpoweris one of the
map, page 12). major impediments to economic growth in many
The BankGroup continuesto take a specialin- developing countries; the Bankbelieves that im-
terestin the possibility of financing projectsin the proved educational facilities, based on careful
field of agro-industries and activities such as fish- planningof educationsystemsto make them rele-
eries. Although only one commitment was made vant to students'subsequentemployment oppor-
in this field during the year under review-a $1.3 tunities and countries' needsfor skills, are among
million IDA credit for Ghana'sfishing industry-a the soundestforms of investmentto be made in
number of projects are currently under examina- the developingworld.

13
The Bank and IDA try to sharpen the impact of loans or credits, therefore, support simultaneous
their education lending by concentrating their as- improvements at a number of levels, and involve
sistance on those parts of the education process not only a variety of quantitative increases in facil-
which are most closely connected with countries' ities but also qualitative improvements in the over-
economic progress, and by promoting structural all structure and content of the system. The Bank
reforms of education systems aimed at making and IDA also finance assistance in educational
them more efficient and more relevant to coun- planning and curriculum development, and help
tries' needs. The structure of education systemsin governments to set up units for this purpose where
many of the Bank's member countries often re- necessary.
mains more appropriate to a developed than a The $11 million Bank loan to the Ivory Coast is
developing economy. A system which diverts a of particular interest, in that it includes support
disproportionate amount of resources to univer- for educational television facilities on an experi-
sity education at the expense of adequate lower- mental basis. In close cooperation with the United
level schooling may be a luxury which some coun- Nations Development Programme (UNDP), the
tries simply cannot afford, while a curriculum United Nations Educational, Scientific and Cul-
which emphasizes traditional academic studies at tural Organization (Unesco), the United Nations
the expense of technical and vocational education Children's Fund (UNICEF) and the Fonds d'aide
is liable to produce school leavers whose qualifi- et de cooperation (FAC), the Bank is helping to
cations do not match countries' urgent needs for finance the construction of an educational tele-
trained managers, technicians and agriculturists. vision center which will produce primary edu-
Bank and IDA educational loans and credits are cation programs for use throughout the country,
made only after detailed examination of the edu- together with the construction and equipment
cational system of the country concerned, in which of three primary teacher training schools, three
the relevance of the system to the country's exist- general secondary schools, two secondary tech-
ing and projected manpower needs is carefully nical schools, two post-secondary technical
analyzed. The Croup believes its lending should schools and one adult vocational training school.
assist the coordinated development of a country's The project will also provide the Government with
education system as a whole; most individual funds for studies of curriculum reform and cost-
reduction techniques in secondary education, for
the employment of consultants on school building
Loans and Credits: EDUCATION design and constructionsupervision,and for the
(Million US dollars) establishment of a coordination and supervision
unit in the Ministry of Education. The project is
designed to help the Government achieve the ob-
jective of doubling the number of trained teachers
in the Ivory Coast to 14,000 and raising the num-
_t,
44 ber of children attending primary schools from
about 400,000 to 600,000 in 1974-75.
The Group made three commitments to assist
university education programs relevant to eco-
nomic development during the year-an $8 mil-
lion IDA credit to Pakistan for the West Pakistan
University of Engineering and Technology at La-
hore and the Government Engineering College at
Karachi; a $6.1 million IDA credit to Kenya, which,

I
} l
apart from supporting agricultural education at
the secondarylevel and primary and secondary'
teacher training, will assist the establishment of
Kenya's first University Faculty of Agriculture; and
4 _ a $5.3 million Bankloan to Zambia for expansion
:: SY of the Faculties of Engineering and Education at
EiJ
gIthe University of Zambia. This project will enable
the University (whose enrollment is expected to
treble bv 1973) to provide newvlecture rooms, lab-
1970
1964-68 1969 1964-66
1970 1969 i 9 _ ~~~oratorie's
and other facilities for the twsofaculties.
Average The project will also provide funds for the con-
struction and furnishing of hostels for 960 students
and staff.

14
 LoansandCredits:AFJCA
(Million US dollars)

1964-68 1969 1970 ^ll_

The majority of the year's Bank loans and IDA Government of Cameroon to construct or expand
credits have again been designed to assist the de- and equip four teacher training colleges, 15 gen-
velopment of three areas of education which the eral secondary schools, a post-secondary school of
Group considers to be of special importance- agriculture and two technical schools, and to re-
secondary schooling, technical and vocational equip two other technical schools. The 24 schools
education and teacher training. A $7 million Bank covered by the project will have a combined en-
loan to Chile will help finance the construction or rollment of over 7,000 students, adding a total of
expansion of eleven teacher training institutes, 5,500 places to the existing system. The project
raising trainee enrollment from 3,000 to over 5,300 also involves measures of curriculum reform de-
and the construction or expansion of eleven agri- signed to strengthen the teaching of technical and
cultural secondary schools, providing over 3,200 agricultural studies, and agricultural and workshop
new school places. A second loan to Chile, for training. Other projects approved during the year
$1.5 million, will provide funds for the further ex- included a $9 rnillion Bank loan to the Republic
pansion of Chile's industrial and agricultural voca- of China for industrial and vocational schools, and
tional training program (a previous loan had been for feasibility studies of educational television and
rnade for an earlier expansion of the program in fisheries education; a $6.5 million Bank loan to
1965). A $3 million IDA credit to Sierra Leone will Colombia for comprehensive secondary schools;
help the Government to diversify the curricula of and a $12 million Bank loan to Spain for basic
eleven secondary schools to include the teaching general education and teacher training centers.
of agricultural, commercial, scientific and indus- As shown in its Ivory Coast loan, the Bank is
trial subjects, to expand the combined enrollment prepared to experiment wvith new technology in
at two technical institutes and two trade schools the field of education, particularly when the bene-
from 740 to nearly 2,000 full-time students, and to fits obtained from modern equipment can be
double the capacity of the Freetown Primary shown to outweigh their costs. The Group is in-
Teachers' Training College. The Canadian Interna- terested in the development of new teaching
tional DevelopmentAgency (CIDA) and the UNDP aids such as instructional television, programmed
are joining with the Bank and the Government of learning, and audio-visual devices; it is ready to
Sierra Leone in providing funds for equipment and consider their use wherever they can be shown
technical assistance activities connected with this to provide an economic solution in a specific
project. A $10.5 million IDA credit will help the project situation.

15
 The Bank's cooperative arrangements with facilities form a necessaryprerequisite for the suc-
Unesco and FAO continued to be of value in Bank/ cessof policies to promote agricultural and indus-
IDA education financing activities during the year. trial growth; the planned further expansion of
Eight of the projects approved in fiscal 1970 had infrastructure, in line with countries' abilities to
been identified or prepared with the help of use it productively, remains essential if their over-
Unesco; Unesco staff members also participated all developmental goals are to be met. The Bank
in eleven Bank missions during the year for pre- Group is aware, however, that infrastructure proj-
liminary identification of education projects,while ects in the developing as well as the developed
FAO participated in eight Bank missions con- world may have disturbing effects on the environ-
cerned with appraisal or preparation of agricul- ment. It is increasing its efforts to ensure that the
tural education projects. An understanding was ecological effects of the projects it supports are
reached during the year, subject to the approval taken properly into account when projects' po--
of the Board of Governors, that the agreement tential costs and benefits are appraised.
with Unesco, on which the two organizations' co- During the year under review, Bank and IDA
operative activities are based, would be expanded lending for public services reached a total of
to include the services of personnel in divisions $1,315.1 million, a notable increase on 1969's pre-
other than Unesco's Educational Finance Division. vious record total. The cumulative total of Bank
This will make it possible for the Bank to draw and IDA lending for public services now stands at
more heavily on Unesco's expertise in specialized over $10,000 million and represents about 60% of
fields, and will broaden the institutions' joint ac- all loans and credits made by the two institutions
tivities to cover the preparation of educational to date.
sector studies in member countries. In this as in other sectors, the Bank and IDA
recognize that technical assistanceand support for
Financing Public Services institution building may often be needed at least
The provision of finance for projects to improve as urgently as physical infrastructure. Many of the
countries' public service infrastructure-transpor- year's loans or credits for public services con-
tation networks, electricity supply, telecommuni- tained allocations of funds for technical assistance
cations, sewerage and water supply systems-has (see below, page 27): in addition, four of the six
traditionally been the largest single area of Bank IDA credits made during the year solely for tech-
Group lending activity. Adequate infrastructure nical assistance were for engineering or project

LoansandCredits: ASIA
(MillionUSdollars)

16

16
 preparation work in the field of public services miles; and feasibility studies on another 2,365
(see below, page 27). Institution building, the cre- miles. The project will also provide funds for con-
ation or improvement of institutions in member sultants' services designed to help Brazil's National
countries for the management and development Highway Department to strengthen its planning
of national strategies in the field of public services and construction supervision capabilities. An $11.6
remained a major aim of Bank and IDA assistance million IDA credit to Uganda will provide funds
during the year. A large number of the year's loans for the foreign exchange costs of a project for road
or credits for public services, especially in the construction and rehabilitation, for new engineer-
fields of transportation and electric power, in- ing and feasibility studies and technical assistance
cluded allocations of funds for the training of local (including personnel training) to Uganda's Min-
personnel, for the establishment or improvement istry of Works; the detailed engineering work for
* of planning units within government departments the road construction and rehabilitation compo-
or for the development of units for project man- nent of this project was financed by a 1967 IDA
agement and supervision. credit. These and a number of other road loans
and credits made during the year illustrate the
Transportation workings of the project cycle. The preparatory
The value of loans and credits for transporta- work for the construction component of a given
tion rose sharply during fiscal 1970. The 34 such project is financed by a loan or credit made in a
loans and credits totaling $660.8 million made previous year; when the new construction work
to 28 countries included a $25 million loan to is undertaken, the loan or credit to finance it con-
Nigeria for a transportation rehabilitation proj- tains an allocation of funds for preparatory work
ect, the proceeds of which are to be used for three on the next stage of construction. In this way the
transportation subsectors, roads, ports and rail- Bank and IDA are able to help member countries
ways. $40-1.4 million was provided for roads, build up a coherent on-going program of highway
$168.8 million for railways, $48.1 million for ports development.
and $42.5 million for pipelines. In addition, three Road projects need not necessarily involve ma-
IDA credits totaling $2.9 million were provided jor new construction work; apart from allocations
for project preparation work in this sector (see for technical assistance or institution building
below, page 27). (mentioned abovei a number of the loans and
The $401.4 million provided for roads during credits approved during the year were for im-
the year included loans or credits to Brazil, Came- provement or maintenance of existing roads. For
roon, the Central African Republic, Chile, Colom- example, commitments included a $6 million Bank
bia, Congo (People's Republic of), Costa Rica, loan for maintenance to Paraguay,undertaken on
Iran, Kenya, Mali, Mexico, Morocco, Nigeria, Pa- the basis of a road maintenance master-plan
pua and New Guinea, Paraguay, Rwanda, Senegal, financed by an earlier Bank loan; a $7.7 million
Tanzania, Uganda, and Yugoslavia: in addition, IDA credit for road maintenance and pre-invest-
$12.4 million of the Nigerian rehabilitation loan ment studies in Mali, and a $4.3 million lDA credit
was allocated to roads. Projects covered all types for maintenance in the Central African Republic.
of road development, from major highways to A $14.6 million joint Bank/IDA lending operation
small agricultural and feeder roads. Many of the in Mlorocco will finance extensive road mainte-
projects stemmed from feasibility or engineering nance and improvement works as well as the con-
studies undertaken in previous years with either struction of 64 miles of new roads.
Bank or UNDP assistance; many new loans and Several of the loans and credits made for roads
credits also contained allocations of finance for during the year were designed to provide trans-
studies designed to lay the groundwork for future portation facilities in support of countries' agri-
projects. cultural development. The Uganda and Morocco
- The year's largest lending operation for roads projects mentioned above, together with a $23.5
was a $100 million Bank loan to Brazil. This was million Bank loan to Kenya for trunk, feeder and
the second of a series of loans expected to flow farm access roads, and a $19 million joint Bank/
from a two-stage comprehensive transport survey IDA lending operation for road improvements and
for which the Bank made a first stage $1.5 million feasibility studies in Cameroon are examples of
grant in 1965; the second stage, partially financed projects whose major justification was in terms of
by the UNDP and the United States Agency for the benefits they would provide to agriculture
International Development (AID), is nearing com- (and to tourism in the cases of Morocco and
pletion. This $100 million loan will provide funds Kenya).
for the construction and paving of 541 miles of Lending for railways during the year included a
major roads; the improvement of a further 785 $55 million joint Bank/IDA lending operation in
miles; detailed engineering work covering 1,420 Korea, a $55 million IDA credit to India, a $42.4

17
million Bank loan to the EastAfrican Railway Cor- previous assistance for physical port works, but
poration, the entity responsible for the rail net- the IDA credit made during the year for develop-
work of the EastAfrican Community (Kenya, Tan- ment of the port of Tamatave had been preceded
zania and Uganda)-its third for the Community's by a Bank-financed pre-investment study forwhich
railways-and a $5.2 million loan to Cameroon, a grant of $196,500 had been made in fiscal 1968;
together with $11.2 million of the Nigerian re- the $2.1 million IDA credit to The Gambia was the
habilitation loan. The credit to India was the first Bank Group commitment to that country.
Group's tenth measure of assistance to that coun- Most of the year's port loans were of method-
try's railways, which are of particular economic ological interest in that their evaluation included
importance in that country. The IDA funds pro- some "queuing" analysis to derive information
vided will assist a two-year expansion program about ship stays in ports. In particular the East
whose total cost is estimated at over $700 million, African Harbours Corporation loan was under-
of which over $600 million will be provided by taken with the assistance of a simulation model
funds generated by the railways' operations and which enabled the Bank to refine considerably its
from Indian government sources. evaluation of the size and timing of the invest-
The East African railways loan was one of two ments. This simulation model was developed en-
made during the year to the transport corpora- tirely within the Bank. In this as in other lending
tions of the EastAfrican Community. The second, sectors, the Bank's staff is continually refining its
of $35 million, was for port development. This project appraisal methods by developing new
loan, together with a $9.6 million IDA credit to the techniques of quantitative analysis. often involv-
Malagasy Republic, a $2.1 million credit to The ing computer simulations, which can usefully be
Gambia and the port component of the Nigerian applied to its operational work.
rehabilitation loan ($1.4 million) made up the Two loans for pipelineswere signed during the
$48.1 million provided by the Bank and IDA for year, for a total value of $42.5 million. These
port development during fiscal 1970. loans were designcd to assist the construction of
The East African Community had received pre- natural gas pipelines in Bolivia and Pakistan. The
vious World Bank assistance for port improve- loan to Pakistan amounting to $19.2 million, will
ments; the Malagasy Republic had received no assist the further expansion of the Sui Northern
pipeline.
In addition to the above activities the Bank has
Loansand Credits: TRANSPORTATION some airport projects under preliminaryappraisal.
(Million US dollars) Careful project appraisal is hasic to all Bank and
IDA lending. In app;aising transportation projects,
the two institutions attach particular importance
to the coordination of different modes of trans-
portation. This stress on coordination also applies
to the pre-investment studies undertaken hy the
Bank and IDA. which often lead to a group of
projects involving loans or credits to more than
:.'' fff::s xiiVi:E:S
f; f : :;one transport sub-sector: the major studies under-
taken in Brazil, for example, are concerned with
fi3862.4
SSX 0 . ;0
X 0 ;:;; ifrailways and ports as well as roads. The Bank is
: R | 2: SS 0 ;: :0f0:::
0V: : X : : 0 increasingly using sector-wide studies to deter-
E 10 si
-0:20 : : 00 0: : :0 ? : 00 ;S mine a strategy for transport development and to
determine the priority of different transportation
projects for which financial assistance is sought.
Apart from the physical improvements they help
to provide, the Group believes its projects should
encourage member countries to create or improve
their own institutions for the management and
development of national strategies in this as in
other sectors. A large numher of the transportation
964-6
170 : X ;6|_
9 |; 0 _ _ loans and credits approved during fiscal 1970 in-
cluded allocations of funds for the training of local
personnel, for the establishment or improvement
of planning units within government departments
or for the development of units for project man-
agement and supervision.
18
ElectricPower Liberia and Malawi-which had not previously
Bank and IDA lending for electric power devel- obtained Bank Group finance for this purpose.
opment in member countries totaled $537.3 mil- A $15 million IDA credit to Indonesia will help
lion in fiscal 1970. The two institutions supported that country's national power authority to improve
projects designed to improve generation, trans- its managerial and operating capabilities, and will
mission or distribution facilities in 14 countries. assist the expansion of Djakarta's electricity dis-
In addition an IDA credit of $2.5 million was pro- tribution network, which is currently unable to
vided for project preparation work in this sector serve the growing needs of the city's four million
(see below, page 27). people. The credit also provides funds for the
Power lending remains a major subsector of foreign exchange costs of a two-year program of
total Bank and IDA financing for a number of rea- organizational and training assistance, to be car-
sons. First, an adequate level of electricity supply ried out by consultants; institution building assist-
has become a prerequisite for countries' economic ance of this kind is of particular importance to
growth. Second, lending for power, as for other Indonesia, which faces an acute shortage of man-
infrastructure projects, represents an input into the agerial and technical skills. A $7.4 million Bank
whole economy of a country, benefiting other loan to Liberia will nearly double the generating
sectors such as industry, commerce and tourism. capacity of the electricity system serving Mon-
Third, the demand for power rises very rapidly rovia, that country's capital, and its main port. A
once the growth of these sectors gets properly $5.3 million IDA credit to Malawi will help to
under way, and shortfalls in supply can seriouslv finance a power expansion program which will
hinder further progress. Fourth, power projects serve the growing needs of the country's most
are heavy consumers of capital, of vhich a large important region; the credit will provide funds for
proportion often needs to be found in the form the foreign exchange costs of new hydroelectric
of foreign exchange. and thermal generating plant and will also assist
The geographical scope of Bank and IDA power the training program of NMalawi'sElectricity Supply
lending continued to broaden during the year. Commission. The expansion of clistribution and
Funds were committed for electricity generation transmission facilities under this program will be
or transmission in three countries - Indonesia, assisted by a $3 million loan provided by the Afri-
can Development Bank; this is the first timea mem-
ber of the World Bank Croup has joined with the
Loans and Credits: PUBLIC UTILITIES AfricanDevelopmentBanktohelpfinanceaproject.
tMilion US doi,ars)
(Million
dollars) US The Malawi credit was one of several examples
during the year of lending operations undertaken
by the Bank or IDA in conjunction with other
sources of external finance. Apart from participa-
tions in loans taken up by banks in developed
countries, arrangements may be made for parallel
financing of different components of a project by
the Bank and other institutions, as in the case of
Malawi, or for joint financing of particular items
bv the Bank and financial institutions in countries
r u. _. 9 where orders for equipment are placed. Such joint
financing arrangements were made for projects
supported during the year in Mlexico and Brazil,
.- . c;for
z _ X which the Bank provided loans of $125 million
376.6 X and $80 million respectively. Complementary fi-
nancing arrangements not only help the borrower
but also provide encouraging demonstrations of
the possibilities for international cooperation in
. I ; . tfinancing development projects. Details of the
j oi nt fi nancing arrangements made for the Mexican
and Brazilian projects are given on page 30).
The Mexican loan was the year's largest in the
power sector, and made Mexico the Bank'ssecond
_ S
1964-6 1969 1970'-largest borrower for all purposes, net of cancella-
Average tions. The present loan is the latest in a series
which have assisted the expansion of Mexico's
power sector since 1949: the growth of power

19
 Loansandc'reUts:EJROPE
.

supplies has supported the evolution of the econ- ance to projects in this field now stands at $175.1
omy to a stage where manufacturing is now the million.
largest sector. The Bank made a loan of $18.5 million to
A major aim of Bank Group power lending is Colombia in fiscal 1970. A $14 million 1968 loan
institution building within the power sector. The had supported the improvement of the supply to
development of well-managed, efficient power the capital, Bogota; the new loan will help finance
authorities can be fostered by the provision in water supply and sewerage in Cali. The $10.5
loans or credits to new borrowers of finance for million IDA credit to Tunisia made during fiscal
organizational improvements or staff training- 1970 was also the second measure of Bank Group
as in the case of the IDA credits to Indonesia and assistance to that country for water supply (a $15
Malawi-or through relationships built up over million Bank loan had been provided for this
the years with existing borrowers. The Bank and purpose in fiscal 1969).
IDA value such relationships, both because they The year's other commitment, a $3.5 million
assist the process of institution building, and be- IDA credit to Ghana, will support the extension
cause they enable the Bank and the borrower to of the water distribution system in the capital,
evolve and adapt on a continuing basis agreed Accra, and the neighboring port of Tema, together
long-term programs for the expansion of the with the installation of a modern sewerage system
power sector as a whole. Apart from the loans to in Accra. The Ghana Water and Sewerage Corpo-
Mexico and Brazil mentioned above, loans or ration, which will administer the project, was es-
credits for projects which form parts of ongoing tablished in 1966 with the assistanceof the UNDP.
programs of system improvement and extension Water supply projects provide valuable benefits
were also made to Argentina, Ceylon (2), the Re- to the populations of areas in which they are lo-
public of China, Colombia, Costa Rica, Cyprus, cated, but there are often serious problems in-
Honduras, Panama and Thailand during the year. volved in setting up sound projects for this
purpose. The need for such projects is usually
Water Supplyand Sewerage greatest in the rapidly growing cities of the devel-
Three commitments totaling $32.5 million were oping world; all too often, however, these cities
made for water supply and sewerage during the do not charge or collect adequate tariffs, and are
year under review, to Colombia, Ghana and Tu- dependent on their countries' already overbur-
nisia. The cumulative total of Bank and IDA assist- dened national budgets for urgently needed funds.

20
 This situation, which often leads to the unavail- to increase the number of telephone lines in the
ability of sufficient funds to carry out projects, country from 400,000 to 1,400,000, almost to
underlines the desirability of adequate levels of quadruple the number of long-distance circuits,
charges which will provide the funds to enable and to improve international telecommunications
the water authority to work effectively. links by providing new automatic exchanges and
The Bank Group is also concerned that the constructing a ground station for satellite commu-
water authority has, or can develop, the ability to nications using the INTELSATnetwork. Bank funds
execute and operate the project in a reasonably will assist the long-distance and international
-effective manner. This often requires a large meas- improvements.
ure of institution building. The Bank's concern The project to be assisted by the IDA credit to
with rate levels and institution building is part of Nepal is small by comparison, but is nevertheless
.its overall policy of taking every possible step to of great economic significance to the country.
see that the projects it assists provide a soundly Because Nepal's terrain makes surface or air
based, economical and self-sustaining service to communications between different parts of the
the community for whose benefit they were country peculiarly difficult, telecommunications
established. facilities are of special importance. The $1.7 mil-
Notwithstanding the real difficulties involved lion IDA credit wvill provide part of the foreign
in establishing and expanding properly managed exchange costs of a project to expand existing
water supply systems, the Bank hopes it may be telephone exchanges and long-distance networks
able to support further projects during the coming within Nepal, and to establish new facilities for
years in this area of urgent need. It encourages international telephone and telex services. The
and assists in the preparation of suitable projects Government of India is joining with the Bank and
and examines with special interest UNDP pre- the Government of Nepal in financing the project.
investment studies in this field being carried out During the year, IEC also undertook a commit-
by the World Health Organization (WHO). ment in the field of telecommunications, through
Telecommunications its purchase of $4.5 million of an $11 million de-
benture issue made by the Philippine Long Dis-
Adequate telecommunications networks pro- tance Telephone Company. Further details are
vide a powerful stimulus to industry, commerce available in iFC's own Annual Report.
and tourism; they also assist the development
of efficient government and administration. The Financing Industry
Bank and IDA have continued to expand their The Bank and IDA help to promote member
lending for telecommunications projects during countries' industrial development through loans
the year under review. The year's lending, totaling and credits to development finance companies,
$84.6 million, brought the overall total of Bank/ which relend the funds provided to productive
IDA lending in this field to nearly $400 million. industrial or commercial entities in the country
The six telecommunications projects supported concerned, and through loans or credits for spe-
during the year ranged from the first loan or credit cific industrial projects in member countries. In
made by the Bank Group to Nepal (a $1.7 million addition, IDA credits have been provided under
IDA credit), to a $40 million Bank loan to Yugo- special circumstances to two governments for the
slavia, the Group's first loan for telecommunica- purchase of imports of raw materials and com-
tions to that country. Other lending operations ponents essential for the operations of specified
undertaken for this purpose during the year in- industries. Finally, investments by IFC in produc-
* cluded Bank loans to Costa Rica ($6.5 million), the tive private enterprise ventures in the developing
EastAfrican Community i$10.4 million) and Singa- world represent an important part of overall Bank
pore ($11 million), and an IDA credit of $15 mil- Group financing of industrialization in member
* lion to Pakistan. countries.
The year's largest and smallest loans in this field, Before considering the vear's record in each of
to Yugoslavia and Nepal, serve as good examples these categories, it is worth noting that Bank
of the importance of telecommunications in two Group lending for agricultural, educational and
different developing countries. Yugoslavia is a public service projects helps to provide member
country with a relatively high per capita income, countries withi some of the major prerequisites of
an expanding industrial sector, and an important industrial growth - a cash economy, a trained
tourist industry. It has a well developed, largely labor force and an adequate stock of physical in-
automatic telephone network, but recent rapid frastructure. Moreover, under the Bank's general
economic growth has created a surge of demand policy with regard to procurement of goods fi-
far beyond the capacity of the existing system. The nanced by its lending, a margin of preference
project supported by the Bank's loan is designed equivalent to 15%, or the actual tariff rate if it is

21
 lower, may be applied to bids submitted by local a record in terms of the value of commitments,
suppliers in the borrowing country for contracts the numberof companiesassisted,and the num-
under Bank-financedprojects. (In certain cases, ber of new countries to which loans and credits
such a margin of preferencemay be extended to were made.
suppliers in other countries which are members The $5 million IDA credit to the Societe Con-
of a regional grouping to which the borrowing golaise de Financement du Developpement
country belongs.)Finally,the technical assistance (SOCOFIDE)in the Congo is of special interest.
and advice which the Bank Group provides to SOCOFIDE,a new type of organization for the
member countries contribute to the adoption of country, is chargedwith financingproductivebus-.
national economic policies and the building of iness ventures,and also with promoting Congo-
local institutions conducive to industrialization leseenterprise.Financefor the new companywas
along sound lines. provided not only by IDA, but alsoby IFC,by local.
A growing numberof the Bank'smembercoun- investors,by the Congolesegovernmentand by
tries have reachedthe stagewhere they can make financial institutions in Belgium,France,the Fed-
good useof infrastructurebuilt in pastyears,often eral Republic of Germany, Italy, Japan and the
with BankGroup assistance,for further economic United States.This credit is only the fourth Bank/
developmentbasedon industrialgrowth.The Bank IDA commitment to a developmentbank in sub-
is presently engaged in a reconsiderationof its SaharaAfrica. The Bankand IDA are anxiousto in-
industrial financing policies with this in mind. creasetheir lending in this area and have been
Overall Bank and IDA assistanceto industry expandingtheir exploratory work to this end, but
during fiscal 1970 totaled $367.5million. Of this many African countries still need substantial
total, loans and credits to development finance amountsof technicalassistance in settingup effec-
companiesamounted to $216 million, and com- tive and viable development finance companies.
mitments for specific industrial projects to $76.5 The $20 million IDA credit to the Industrial
million. In addition one IDA credit of $75 mil- DevelopmentBankof Pakistan(IDBP)is one of the
lion was provided for imports of industrial mate- first Bankor IDA lending operations for a devel-
rials.The investmentsof IFCin productiveprivate opment bank with majority governmentowner-
enterprise ventures in the developing world to- ship, following the change of policy made pre-
taled $111.8million in the fiscal year.
As in previousyears,loansand credits to devel- L
opmentfinancecompaniesabsorbed the largest Loanusand Credits: INDUSTRY*
single share of Bank Group industrial financing. , U
Thesecompaniescan play a vital catalytic role in
the mobilization of capitalfor industrialand com-
mercial developmentby providing loan or equity
finance,by underwriting securityissues,by serving
as financial intermediariesbetweenlocal and for-
eign businessmenand by providing locally estab-
lished companieswith managerialand technical
advice. Development finance companies often
also perform a useful institutional function within
countries' financial structure by encouragingthe
development of capital markets. The Bank and
IDA have now lent a cumulative total of more
than $1,000 million to some 30 developmentfi-
nancecompaniesin member countries.
The $216 million provided by the Bank and
IDA during fiscal 1970 was lent to finance com-
panies in twelve countries. Four companies, in
C f
Brazil, Congo (DemocraticRepublicof), Pakistan ,X
and Singaporereceivedtheir first loansor credits
from the Group (although funds had been previ-
ously provided to a different company in Pakis-
tan). The eight other companies assistedduring
the year in Ceylon,the Republicof China,Greece, 1964-68 1969 197
India, Israel, Morocco, the Philippines and Tu- . 1Average
nisia, had all received previous Bank Group fi-
nancing. Lending during fiscal 1970 represented
*excludingindustrialimportscredits
22
 viously to permit such financing. The credit will its Washington headquarters, or secondment of
help IDBP to provide finance mainly to medium World Bank staff members to work in the offices
sized firms, and its benefits will be focused on of the development bank concerned). The estab-
industrial and commercial development in East lishment or improvement of sound lending cri-
Pakistan, hitherto a relatively poor region com- teria, staff expertise and efficient operating
pared to West Pakistan. The credit will comple- procedures are as important for the effective
ment the assistance provided by the Bank Group working of development banks as the provision
in previous years to PICIC, Pakistan's other main of finance. The Bank Group's involvement with
source of long and medium term development development finance companies extends, there-
finance, fore, far beyond providing them with funds; it
The other two companies assisted during the intends to increase still further the amount of time
year which had not previously received Bank or it spends on technical assistance to such institu-
IDA finance also have majority government share- tions, and to extend such assistance to new ones,
holdings. A Bank loan of $25 million was made to during the coming years.
the Banco do Nordeste do Brasil, a government- As noted above (page 21) the Bank and IDA
sponsored regional development bank which, also provide cdirectfinancial assistancefor specific
since its establishment in 1952, has been a prin- industrial projects in member countries. Four
cipal instrument for promoting the development loans or credits of this kind, totaling $76.5 mil-
of the Northeast. That bank works in close coordi- lion, were approved during the year under review,
nation with the Brazilian planning agencies de- to the Dominican Republic, Indonesia, Pakistan
voted to improving the infrastructure and raising and Yugoslavia. The year's largest commitment of
the level of production in the Northeast. The this kind was a $30 million IDA credit to Indo-
fourth new company, to which the Bank lent $5 nesia for fertilizer production; the credit will help
million during the year, is the Development Bank an existing and well-run fertilizer operation to ex-
of Singapore which is 49% government owned. pand its output from 100,000 to 480,000 tons of
This company, established less than two years urea per vear, and thus help the expansion of
ago, will play a key role in the development of Indonesia's agricultural production. Complemen-
export-oriented industries in Singapore and in the tary financing arrangements 'were made for this
creation of commercial urban facilities. project involving funds supplied by the Asian
As noted above, IFC participated in the financ- Develoment Bank, Japan, ancl the United States.
ing of SOCOFIDE, in the Congo, subscribing $0.8 The $25 million Bank loan to the Dominican
million of the company's capital. Other commit- Republic is for a large integrated nickel-ore min-
ments made by IFC to development finance com- ing and processing operation. The Bank loan will
panies during the year included a $0.1 million help finance the costs of a thermal power station,
increase in its equity investment in a Colombian including the pipeline wvhich transports fuel from
company; a $10 million loan to Adela Investment the coast to the project site. The project vwill tap
Company, S.A., a private financial institution a rich source of mineral wealth, will help diversify
whose charter permits it to assist enterprises economic activity and will provide the country
throughout the Western Hemisphere, with the with valuable foreign exchange earnings. (An
exception of Canada and the United States (the agency of the Dominican Government is a share-
Group's first measure of assistance to a develop- holder in the corporation set up to operate the
ment finance company which operates in more project, which is jointly sponsored by established
than one country); a $0.6 million increase in its Canadian and United States companies.) This is
equity holding in a Tunisian finance company; and the first Bank Group operation in the Dominican
a $2 million investment in a new development Republic. The year's other two lending opera-
finance company in Yugoslavia. IFC's operations tions were an $18.5 million Bank loan to assist
in this sector totaled $13.5 million, and brought the automotive and ancillary industries and spe-
the total of Bank, IDA and IFC investment in de- cialized steel production in Yugoslavia. and a $3
velopment finance companies during the year to million IDA credit to Pakistan for small industry
$229.5 million. development.
The Bank Group is anxious further to expand A new Industrial Projects Department has been
its support of development banks, both through formed to take responsibility for the Bank's direct
lending and technical assistance. Such assistance lending to industrial entities. The Department is
can take a variety of forms, including help with also responsible for assisting member countries
the establishment of new institutions, finding staff, in the formulation of policies for industrial devel-
organizational and managerial advice, and staff opment, for undertaking industrial sector studies
training (which may involve either secondment of and for providing project-linked technical assist-
key local personnel to work with the Group at ance or help with institution building wv,herenec-

23
 essary. Activities of this kind are becoming an million loan to IFC to replenish the Corporation's
increasingly important element in the overall pat- loan funds; this loan incorporated and replaced
tern of Bank Group assistance to this and other a 1966 $100 million loan, which had become al-
sectors. most totally committed by the middle of fiscal
Under special circumstances IDA credits have 1970. IFC expects to expand its activities still fur-
been used to provide funds for essential imports ther during the years to come.
of industrial materials needed for the production
of capital goods. One operation of this kind was New Areas of Lending
undertaken during the year, a $75 million IDA
credit to India. The credit will help provide for- Population
eign exchange, urgently needed by a number of The Bank's interest in the population field arises
industries which make a vital contribution to from its awareness that the high rates of popula-
India's overall development effort, for the pur- tion growth in many of its member countries can
chase of imported raw materials and some essen- severely impede their economic development ef-
tial components and spare parts. The industries forts. At the same time, the Bank is deeply con-
assisted under the credit produce commercial scious that this is a complex and sensitive area,
vehicles, tractors, automotive ancillary parts, ma- involving difficult ethical, political and social
chine tools, cutting and small tools and abrasives, issues in addition to the technical aspects of the
electric motors, fertilizers and pesticides. The problem-economic, demographic and medical.
value of their combined production is expected The Bank believes that greater awareness is
to exceed $1,000 million in 1970-71, and they needed of the problems associated with excessive
provide employment for about 160,000 people. population growth, and that it should be ready to
Industry is playing an increasingly important part assist member governments seeking help in de-
in India's economy, both through its direct con- veloping population policies and programs, and
trihution to employment and income and through in the improvement of existing programs. A Popu-
the provision of domestically manufactured goods Vlation Projects Department was set up in fiscal
required as inputs by other sectors, notably agri- 1969 to undertake responsibility for Bank Group
culture and transportation. ' activities in this area.
Investments by IFC form an important and The Bank has responded to a number of re-
growing type of Bank Group assistanceto industry. quests for technical and financial assistance from
IFC makes equity or loan commitments to pro- member countries during the year under review.
ductive private enterprise in the developing world. It undertook its first such lending operation, a
The cumulative total of its investments has now $2 million Bank loan to Jamaica, in June 1970: the
reached $476.5 million since 1956, when it was loan will help the government to develop a post-
founded; $204.7 million of this total has been pro- partum family planning program (i.e., for women
vided during the last two years. The effectiveness who have just given birth) by financing the con-
of IFC's activities cannot, however, be measured struction of an extension to Jamaica's largest
in terms of its own investments alone; IFC com- maternity hospital in Kingston and of a number of
mitments are designed to stimulate participation rural maternity centers. Following a joint United
in IFC-supported projects by outside investors Nations-World Health Organization-World Bank
from the developed world. To date, the total of advisory mission to Indonesia, a five-year family
such counterpart funds generated by IFC invest- planning program has been recommended to the
ments amounts to $2,132.7 million, of which Indonesian Government. Pre-appraisal missions
$772.5 million has been provided during the past have visited a number of countries during the
two years. year with a view to subsequent Bank Group as-
IFC financing during fiscal 1970 totaled a rec- sistance.
ord $111.8 million, of which $80 million was Technical assistance is often as important a
provided for manufacturing, and the remainder requirement as financial assistance in the family
for development banking ($13.5 million), mining planning field. Advice on program planning, ad-
($12.4 million), services ($4.5 million), and tour- ministration, evaluation, personnel training and
ism ($1.4 million). Investments provided by out- communications is of the greatest value in pro-
side participants in IFC-supported projects totaled moting the effectiveness of programs. The Bank
$380.9 million during the year. expects such activities to form an important part
As the chief source of Bank Group funds for of its effort in this area.
private enterprise development, IFC plays a cru- 1 The Bank is making intensive efforts to increase
cial role in the Group's overall strategy for stimu- its expertise in the field of population problems.
lating member countries' balanced economic Staff members keep in close touch with other
growth. During the year the Bank made a $200 organizations working in this field; international

24
consultantshave served on the Bank's missions. before a satisfactoryrangeof projectscan be de-
The Bank expects to expand its operational and vised, and plans need to be drawn up for the
analytical activities in the coming years, in line coordinateddevelopmentof both basicinfrastruc-
with member countries' requirements for tech- ture and "superstructure"facilities (hotels,restau-
nical and financial assistance. rants,etc.).
If a tourism project is to succeed,visitors need
Tourism to be provided with adequatefacilities for both
Tourism is alreadya major sourceof foreign ex- accommodationand recreation.The Bankis work-
changeearningsfor a number of the Bank'sdevel- ing on an approach to tourism development in-
oping member countries, and could become of volving the creation of tourism complexeswhich
similar importance in others. Moreover, tourism will include all necessaryamenities,rangingfrom
.facilities are labor-intensive; their development basic infrastructure servicesto recreation facili-
can therefore help significantly to mitigate the ties. Tourismprojects require careful and lengthy
severe unemployment problems facing most planning, however; by the end of fiscal 1970,the
countries in the developing world. first full year of the TourismProjectsDepartment's
Becauseof the importance it attachesto tour- operations, two projects were under appraisal,
ism development, and becauseof the complex- while the remainderwere still at the identification
ities involved in the preparationof soundly based or preparationstage.
projects in this field, the Bankestablisheda new Apart from preparatory work on its own
TourismProjectsDepartmentin fiscal1969.Much projects,the Bankactedduring the year asExecut-
of the Department'swork during the latest fiscal ing Agencyfor a project funded by the UNDP,de-
year involved project identification and prepara- signed to provide a tourism master plan for the
tion. Member countries generally lack expertise islandof Bali.The Bank'sTourismProjectsDepart-
in this field, and require extensivehelp with the ment also cooperates closely with IFC on the
preparationof masterplansfor the tourism sector Corporation's tourism investments:the cumula-
as a whole, of feasibility studies for individual tive amount of these investments(including the
projects,and with the developmentof managerial two totaling $1.4 million madein fiscal1970)now
and operational skills. Researchon the magnitude standsat nearly$20 million. Finally,development
of potential tourism demandmust be undertaken finance companies in Morocco and Tunisia as-

LoansandCredits:
LATINAMERICAand
CARIBBEAN
(Million US dollars)

%o
.~~~~~~~~~~
25
sisted by the Bank Group have provided funds and others, the plans of the Lower Mekong
for tourism development. Committee, which is composed of the four coun-
tries through which the Mekong River runs (Cam-
Special Projects bodia, Laos, Thailand and Viet-Nam). The Bank
The Bank is already involved, and expects to is also reviewing a number of small agricultural
become more so, in activities related to inter- pilot projects and larger schemes tentatively put
sectoral projects whiclh involve lending in a forward, and is exploring ways of developing re-
number of different areas. The Special Projects lations between the riparian countries on the one
Department set up in fiscal 1969 to work on such hand and possible donor countries and organiza--
projects has been responsible during the year tions, including the Bank itself, on the other.
under review for Bank/IDA activities in three
fields: continuing support for the program of inte-
grated water and agricultural development in East Technical Assistance and
Pakistan; the identification, preparation, prein-
vestment, appraisal and economic review work Other Activities
required for subsequent lending for urban and
regional development projects; and investigation Technical Assistance
of the most effective role for the Bank Group in During the past year the activities of both na-
connection with the development of the Mekong tional and international institutions in the field
River basin. of economic development, and the adequacy of
Inthefirstofthesefields,theBankstaff indicated programs of technical assistance to developing
during the year to the members of the Pakistan countries, have been subjected to a number of
Consortium possibilities for the general intensifi- intensive reviews. At the national level, several
cation of the East Pakistan Agricultural and Water governments with substantial bilateral technical
Development Program, with which it has been in- assistance programs have undertaken thorough
volved since 1967 in a technical capacity. Two IDA examinations of their policies and methods. At the
project preparation credits associated with this international level, the effectiveness of technical
program were approved during the year, with a assistance in general, and its role in relation to
combined value of S3.2 million (see below, page particular sectors, such as agriculture, have been
27). Apart from such lending operations for spe- studied by the Secretariat of the Organization for
cific purposes, the Bank is continuing to provide European Cooperation and Development (OECD)
assistance in the coordination of the program as and discussed in its Development AssistanceCom-
a whole. mittee; the record of the United Nations and its
The second field, that of coordinated urban Specialized Agencies in providing technical as-
and regional development in a number of project sistance over the past twenty years, and their ca-
areas, is, as such, new to the Bank,-although many pacity to do so effectively in the future, were
individual projects in the existing sectorsof educa- examined in the "Study of the Capacity of the
tion, industry and public services have contributed United Nations Development System" directed by
directly or indirectly to the mitigation of urban Sir Robert Jackson. This examination included a
problems. The Bank considers, however, that the valuable internal review by each agency of its own
time has come to develop an integrated approach programs, organization and effectiveness in assist-
to urbanization. The problems of cities (which are ing its developing member countries.
considered in the special section of Part II of this Two general guiding principles have emerged
Report; see below, page 57) are not unique, but from the process of reappraisal. The first, which-
they are particularly complex; their difficulty is lies at the heart of the World Bank's approach to
increased by the fact that concurrent action is the development process, is that the selection of
often needed on the part of several institutions, development projects or programs for interna-
while city governments which should coordinate tional support-technical or financial-must be
action programs are often relatively weak and undertaken in the context of a program or set of
lacking in managerial and financial resources. The priorities established by each country and cover-
Bank Group intends to consider financial and/or ing all its major development requi-ements. The
technical assistance for urban development in the second principle is that the UNDP, particularly its
years to come. Resident Representatives, should play a central
The third special intersectoral field in which the role in coordinating and providing the inputs of
Bank was involved during the year was the Me- pre-investment and other technical assistance
kongdevelopment program. In orderto determine from the United Nations system to each partici-
its own role, the Bank is currently evaluating, pating country.
in consultation with the Asian Development Bank The establishmentof investment priorities based

26
 on sound economic criteria, firm adherence to of $0.4 million and 51.5 million were provided to
such priorities once they are established, and the Burundi and Ghana respectively for highway en-
development of expertise in project preparation gineering and (in the case of Burundi) mainte-
and implementation, are essential for the success nance studies. Two credits to Pakistan, of $0.8
of the development process. The World Bank has million and $2.4 million, will provide funds for
broadly concentrated its technical assistance, the engineering studies designed to help lay the
bulk of which is geared to its lending program, foundations of an adequate irrigation system in
on these areas in the past, and will continue to East Pakistan: these studies are associated with
do so. During the year under review, with the the East Pakistan Agriculture and Water Develop-
expansion of its lending program, the scope of ment Program (see previous page). A third credit
the Bank's technical assistance activities has also to Pakistan, of $1 million, will help finance studies
increased. relating to the development and expansion of the
As in the past, the principal mechanism for the port of Karachi. This work will be closely inte-
Bank Group's financing of technical assistance grated with other studies of the port's future de-
during the 1970 fiscal year was through the in- velopment which are being financed by the UNDP
clusion in its regular project loans and credits of and being carried out under Bank supervision as
funds for studies to identify and prepare further Executing Agency.
projects for the same borrower (e.g., a power
authority) or in the same sector (e.g., agriculture). Grant financing:The Bank made only one tech-
During the year, Bank loans or IDA credits with nical assistance grant in fiscal 1970-an allocation
a combined value of $1,041.0 million contained of $180,000 to Ethiopia for a water supply and
funds for technical assistance activities. The tech- sewerage study in Addis Ababa, the capital. The
nical assistance component of this lending Bank has reduced its grant financing activities fol-
amounted to $40.4 million. Of this total, $15.3 lowing policy changes made by the UNDP in mid-
million was provided for feasibility studies of 1969, which enabled that organization to provide
future projects. $23.0 million was provided for funds promptly and under simplified procedures
consultants or outside experts to help in organ- for relatively small studies which might otherwise
izing the projects being financed, and to provide have given rise to requests for Bank grants. This
managerial or technical services during their early increased flexibility in UNDP procedures should
stages. The remaining $2.2 million was provided make it unnecessary for the Bank to provide grant
for training and overseas fellowships to enable financing for small preinvestment studies on any
borrowers to become self-supporting in manage- significant scale in the future. The Bank is, how-
ment and other essential project skills as soon as ever, prepared to organize such studies for the
possible. UNDP; during the year under review it agreed
Bank Group technical assistance also takes a to do so in four studies, funded by the U,NDP at
number of other forms: (a) special loans or credits a total cost of $478,000, in Afghanistan, Burundi,
for project preparation, usually involving engi- Malawi and Rwanda. The Afghan and Burundi
neering and/or feasibility studies; (hi grant financ- studies are illustrative of those handled under
ing (up to S200,000) for small preinvestment these arrangements. The former is an investiga-
studies in those relatively rare cases wvhere the tion, costing approximately $60,000, of the pros-
studies cannot, for some reason, be financed by pects for expansion of Kabul Airport; the Burundi
the LJNDP; and (c) work as Executing Agency for project is for the identification and study, at a
projects financed by the UNDP. The missions and cost of about $170,000, of a small hydroelectric
representatives which the Bank maintains in a power site.
number of countries, together with the staff mem-
bers it seconds from time to time to work with Execution of larger UNDP financed projects:
governments, and the advice and assistancewhich During the year, the UNDP approved nine major
it is prepared to provide to governments on de- projects, representing commitments totaling al-
velopment planning also make up a valuable most $9 million, for which the Bank was desig-
source of on-the-spot technical assistance. nated Executing Agency. One of these will entail
Project preparation: During the year under re- the recruitment of staff for the Caribbean Devel-
view, six project preparation credits were ex- opment Bank, which came into existence during
tended to four countries for studies in the sectors the year. Under another project, advice and sup-
of agriculture, transportation and electric power. port will be provided to the Philippine Board of
A $2.5 million IDA credit to Botswana will finance Investment. Similar assistance is being given to the
consultants' servicesand design coordination work Agricultural and Cottage Industries Bank of
for the infrastructure needed to support a pro- Afghanistan. Other UNDP financed projects ap-
posed nickel mining development project. Credits proved during the year for which the Bank is

27
Executing Agency are transport studies in Afghan- valuable and increasing support to Bank and IDA
istan and the Ivory Coast, a power study in Pan- activities in the agriculture and education sectors.
ama, a tourism investigation for the island of Bali (See above, page 13 for cooperative activities in
in Indonesia, the previously mentioned feasibility agriculture, and page 16 for those in education.)
studies of the port of Karachi, Pakistan and a re- The Bank's Permanent Missions in Eastern and
search project on water resources in EastPakistan. Western Africa, located in Nairobi and Abidjan
By the end of the 1970 fiscal year, the Bank had respectively, have continued to provide African
been designated as Executing Agency for 62 member countries with assistance in putting for-
UNDP financed studies, for a total value of $57.2 ward priority projects suitable for Bank Group'
million. Seven studies were completed during the financing, especially in agriculture and transpor-
year, and a further 30 were under way. Many of tation, while the Bank's Agricultural Development
these studies are intended for early investment Service, attached to the EasternAfrica Mission, has'
follow-up. Ten studies completed in this and continued to assist governments in Africa on a
earlier years had led to a cumulative total of Bank reimbursable basis with the management of cer-
or IDA project financing amounting to $918.9 mil- tain agricultural projects.
lion as of June 30, 1970. The Bank maintains Resident Representatives
Detailed analyses of member countries' econ- and staffs in India and Pakistan, and a Resident
omies, and of priority areas for subsequent invest- Economist in Colombia. During the year, Resident
ment, help to provide the essential framework Representativeswere assigned to Afghanistan and
within which the Bank's own lending programs Ethiopia, and a new Bank Resident Mission was
are formulated; such analyses also represent a established in Nigeria to help the Government
useful form of technical assistance to member with reconstruction, planning and project identifi-
countries themselves. During the year under re- cation.
view, steps were taken to expand the coverage of The Bank's Resident Staff in Indonesia, estab-
the Bank's country economic reports and to lished in June 1968, has continued to help the
develop programs of preinvestment studies in Government of that country to identify priority
close cooperation with the UNDP. The new cotn- areas for external assistance. The Resident Staff
prehensive economic reports will include more works closely with the Government of Indonesia
detailed examination of the special problems of in an advisory capacity; it also provides local sup-
particular sectors, such as education, agriculture port for the aid programs of members of the
and industry, and will analyze in depth critical Inter-Governmental Group for Indonesia (IGGI)
areas such as urbanization and employment. The and helps to identify projects for financing by the
coverage in these reports of the preinvestment Bank Group and by members of the Inter-Govern-
requirements of key economic sectors will also mental Group.
be gradually strengthened. Staff discussions were The Bank continues to provide advisory serv-
held with the UNDP and with the specialized ices to member governments facing special devel-
agencies of the United Nations particularly con- opment planning problems. During the past year,
cerned to enlist their support and staff assistance staff members visited seven countries to appraise
in this important aspect of the Bank's work. The their development planning and policy-making
UNDP, FAO, the International Labour Office machinery, and to advise on possible organiza-
(ILO), Unesco and WHO have all responded tional improvements and technical assistance
warmly to the Bank's requests for cooperation. needs. The secondment continued of a planning
Several Bank missions received the support of adviser to the Government of Haiti, and members
experts from other members of the UN family of the Bank staff were seconded to advise on
during the past year and further expansion of this development planning in Ethiopia and Mauritius.
cooperation at the operational level is likely. In An agricultural economist seconded to the Gov-
particular, it is expected that UNDP Resident ernment of the Sudan to help in the preparation'
Representatives, who have been associated with of a public sector investment program completed
several of the Bank's country missions during the his assignment in April 1970.
year, will increasingly play a central role in the
work of such missions in assessingcountries' tech- Economic Development Institute (EDI)
nical assistance and preinvestment requirements. The Economic Development Institute was set up
Under the Bank's Cooperative Agreements with by the Bank in 1955 to provide training courses
FAO and Unesco, specialized support is provided for senior officials from the Bank's member coun-
by staff members of these agencies in the identifi- tries in subjects of special relevance to develop-
cation and preparation of projects for Bank financ- ment. By the end of fiscal 1970 over 1,100 such
ing. The Bank reimburses FAO and Unesco for officials had attended EDI courses. The 150 par-
part of the cost of this work, which has provided ticipants in the courses offered during the year

28
under review came from 683developing countries Tunisia-Education. Students attending a science class
and two international organizations, at the Teacher Training College in Tunis. This school
Six courses were arranged during the year, in is one of a number in Tunisia that have been expanded,
mDodernizedor re-equipped wviththe as,sistanceor
cluding one six-month genera! course on develop- iunds irom IDA credits.
ment policies and problems conducted in English,
and five courses of eig-ht to eleven weeks in
project-related subjects. Of the project courses,
three were in English and one each in French and of other overseas courses,' including a project
Spanish. The Institute has a small full-time staff; evaluation course in Athens sponsored by the
staff members from the operating departments OECD, a course at the Asian Institute in Bangkok,
of the Bank Group also assist as lecturers. The and a seminar in Rome on financing government
length and timing of the courses are such that two enterprises, sponsored by the United Nations In-
courses are offered simultaneously for much of dustrial Development Organization (UNIDO).
the year.
Apart from regular courses, whiich are con- Aid Coordination
ducted at the Bank's headquarters in Washington, A recurring theme in the recent reviews of the
the Institute assists agencies in member countries international development effort is the need for
to organize and conduct locally based training better coordination of assistance at the country
programs in the developing world. An eight-week level. Development assistance often still appears
project analysiscourse for English-speaking
Afri- to he furnished without the benefit of an agreed
can participants was conducted in Nairobi in July set of priorities for the economic and social devel-
and August1969, in cooperation with the African opment of the country concerned.
Institute for EconomicDevelopmentand Planning The establishmentof developmental priorities
and the Institute for DevelopmentStudiesat Uni- and the consequentcoordination of assistancecan
versity College, Nairobi. [D] cooperatedwith the be greatly facilitated by the kind of detailed
Agricultural DevelopmentFundof Iran in offering analysisof member countries' economiesand of
a four-week course in Agricultural Project Evalu- major sectorswithin them which the Bank regu-
ation in November1969for participantsfrom Iran lanty undertakesand has recently expanded(see
and four neighboring countries.In April and May previous page). Country economic reports are
1970, the Institute provided staff assistanceand now prepared annuallyfor some 30 of its largest
teachingmaterialsfor a project evaluationcourse developing member countries, and every two or
organized by the Government of Indonesia in threeyearsfor others.Suchstudiesprovidea valu-
Djakarta. In addition, individual staff members able basis for the coordination of development
servedas lecturersfor shorterperiodsin a number assistanceat the country level.
29
 The World Bank also supports consortia and ment Assistance Committee (DAC) of the OECD
consultative groups for a number of countries. It is have given helpful consideration to the question
currently sponsor of two Consortia, eleven Con- of the appropriate functions for aid groups and
sultative Groups and the Aid Group for Ceylon. have endorsed the Bank's objectives in this field.
During the year the Bank took over from the During the year under review the rapid expan-
international Monetary Fund the chairmanship sion of the Bank's activities, combined with a sig-
of the Ghana Aid Group. In addition, the Bank nificant increase in the activities of the regional
provides staff support for the Inter-Governmental development banks, underlined the importance
Group for Indonesia (IGGI) and the coordination of ensuring appropriate coordination between the
groups convened by the Governments of Guyana World Bank and the regional banks.
and Honduras; it is also a member of the OECD- Instances of joint financing of the same projects
sponsored Consortium for Turkey. are given elsewhere in this report, and efforts are
Fleven meetings of Bank-sponsored aid groups being made to broaden the areas of cooperation
were held in fiscal 1970. For the EastAfrica Con- still further. World Bank economic reports, proj-
sultative Group, separate meetings were held for ect appraisals and commodity studies are sent
Uganda, Kenya and Tanzania; the India Con- routinely to the regional banks. Meetings take
sortium met in November 1969 to consider the place among the economic staffs of all the insti-
United Nations report on "Evaluation of the Fam- tutions, in order to exchange information on re-
ily Planning Program of the Government of India", search programs and in other ways to improve
and again in May 1970; the Consultative Group the coordination of economic work. The possibili-
for Tunisia met in October 1969 and June 1970. ties of participation by staff members of the re-
Single meetings were held of the Pakistan Con- gional institutions in Bank economic missions are
sortium, the Consuitative Groups for Korea and being explored, and the first such participation
Mlorocco, and of the Ceylon Aid Group. has taken place.
While much of the coordination of develop- A systematic exchange of operational informa-
ment assistance takes place at the meetings, the tion already goes on between the World Bank
Bank makes every effort to encourage continuous and the Inter-American Development Bank (IDB),
consultation among members and recipient gov- and the lending programs of both institutions are
ernments for aid groups sponsored by it; it pro- reviewed together on a country-by-country basis.
vides all members witlh economic reports, special ln addition, the IDB, the Inter-American Commit-
studies, project lists, proceedings of meetings and tee on the Alliance for Progress (CIAP) and the
other related documents. The Bank also provides World Bank are working out arrangements for
economic and related analytical reports for aid closer cooperation in the review of country de-
groups sponsored by other organizations. velopment strategies. Both operational and eco-
During the year the Bank sponsored two inter- nomic missions of the World Bank regularly call
governmental meetings which resulted in agree- at the headquarters of the Asian Development
menits for joint financitng of Bank-assisted projects Bank in Manila on their way to or from member
in the power sectors of Brazil and Mlexico. Under- countries, and discuss findings with their opposite
standings wvere reached under which ten major numbers.
equipment-supplying countries will join with the The World Bank and the African Development
Bank in financing on a 50-50 basis orders in excess Bank, together with the UNDP and the UN Eco-
of $200,000 won bv their suppliers. While the nomic Commission for Africa, have constituted
exact amount to be financed by joint lenders will a coordinating committee for preinvestment
depend on the result of international competitive studies in Africa. World Bank officials also visit
bidding, it is expected that it will total about $40- the African Development Bank on matters of com-
45 million in the case of the Mexican project and mon interest, and it has been agreed that some of
about $26 million for that in Brazil. the African Development Bank's officers should
The Bank cooperates closely with other interna- receive training at the World Bank's headquarters.
tional organizations concerned with development With the agreement of the member government
assistance at the country level. As in previous concerned, the World Bank's missions in Abidjan
years, representatives of the International Mone- and Nairobi discusswith the African Development
tary Fund (IMF), the OECD, the UNDP and of the Bank, whenever that institution expressesan inter-
relevant regional development bank, have at- est, projects which the missions have identified
tended Bank-sponsored Consortia and Consulta- or are helping to prepare.
tive Group meetings as members or observers. The Bank is also cooperating increasingly with
Personnel of the UN Population Division partici- other regional organizations such as the European
pated in the November 1969 meeting of the India Investment Bank (EIB) and the Fonds europeen de
Consortium. Organizations such as the Develop- developpement (FED).

30
 The Directors' decisions related mainly to
MEETINGS
OFTHEPRINCIPAL
AIDCOORDINATING
GROUPS policies for the diversification of productive ac-
JWYn 5. 1990J..w 30, 1970
drt. of Meeting PI-n Ch.i-e tivity in the primary producing countries, for
A. Bank-Sponsored Groups strengthening the competitive position of primary
1.Consortia
India November,
1969 Stockholm IBRD products, and for assistance to appropriate inter-
May,1970 Paris IBRD national commodity arrangements. The first of
Pakistan February,
1970 Paris IBRD these objectives was furthered by the Group's
2.Consuitative
Groups
EastAfrica lending during the year in a number of project
Meeting on
Uganda July,1969 Paris IBRD areas-in particular its lending for livestock, fish-
Meetingon eries and forestry development and for industrial
Keeting February,970Paris IBR projects (see above pp. 9-13 and 21-24)-and also
Tanzania Aprilon
170 Geneva IBRD by the economic analysis undertaken during the
Korea April,1970 Geneva IBRD
Morocco October,
1976
1969 Paris IBRD year of national
ero other economies, vital sectors
ainleoois etr to of activity
Morosio
Tunisia
October,
October,1969 Paris
Paris
IBRD
IBRD and specialized topics.iaEfforts fatvt
meet the
3.Other second objective included discussions with other
Ceylon February,1970 Paris IBRD international organizations concerned with com-
B. OtherAid Coordlination Groups
in whichthe Bank Participates modity production and consideration by the Bank
Guyana September,1969 GeorgetownGuyana Group of the possibilities for its participation in
Honduras March, 1970 Tegucigalpa
Honduras
Indonesia December,1969AmsterdamNetherlands programs of research into key aspects of agricul-
April,1970 Rotterdam Netherlands tural commodity production, and into new types
April,19701 Paris France
Turkey March, 1970
Marc,1970
Paris
Paris
OECD
OECD
of end use. As to the third main objective, Bank/
SeDrRnsohedlgee M yti,
97 Paris OECD IDA staff members participated as observers in
the meetings of major commodity groups, furnish-
ing them with Bank commodity studies and other
relevant material and discussing with them where
Pearson Commission Report appropriate opportunities for cooperation in fi-
The Report of the Commission on International nancing specific projects. Arrangements were also
Development, sponsored by but independent of made to receive authoritative data relating to
the Bank, was presented to the President of the problems of market access.
Bank on September 15, 1969, by the Commission's
Chairman, Mr. Lester B. Pearson, former Prime EconomicStudies
Minister of Canada. The Report, "Partners in Economic analysis is central to the effectiveness
Development," surveyed in detail the past per- of the Bank Group's operational work. Studies
formance and future prospects of the world de- connected with the economics of individual proj-
velopment assistanceeffort; its publication in nine ects, with whole sectors of activity, and with the
languages has stimulated wide-ranging discussion overall prospects and problems of national econo-
in official and other circles throughout the world, mies, are major determinants of the pattern of
and has been followed by a number of new policy Bank Group lending programs. The Bank's eco-
commitments by governments. nomic work also includes the preparation of
Apart from its historical and analytical survey papers dealing with the probleins and prospects
of development, the Report contained a large of major commodities, with international devel-
number of specific recommendations for policy opment finance issues, with improvement of ap-
.actions by both donors and recipients of assist- praisal techniques and methods used in the
ance. The President of the Bank has submitted to Group's activities, and with subjects of special
the Executive Directors analytical memoranda on concern such as population and urbanization.
.the recommendations directly affecting the Bank The Bank's economic staff may undertake spe-
Group's policies and operations. The review of cific studies at the request of other international
these recommendations by the Executive Direc- organizations. During the year under review, Bank
tors has commenced and is continuing. staff worked on a study of "Possible Improve-
ments in Techniques of Lending"-a survey of
the current terms of public international develop-
Commodity Study- ment lending (together with proposals for pos-
lmplementation of Decisions sible improvements) requested by the United
The Bank Group took a number of steps during Nations Conference on Trade and Development
the year to implement the decisions of the Execu- (UNCTAD). The Trade and Development Board
tive Directors regarding the role the Group could of UNCTAD at its Ninth Session, on September
feasibly play in helping to solve problems related 12, 1969, adopted a Resolution, based on the con-
to the stabilization of prices of primary products. clusions of the Intergovernmental Group, which

31
invited the Bank "to consider working out ar- appropriate to officially sponsored groups study-
rangements for supplementary finance and, if ap- ing development problems.
propriate, to consider introducing them." This The Bank expects the individual items for which
matter is under continuing study, and a progress information is supplied to continue to grow sub-
report will be made to the Trade and Develop- stantially, and the overall picture they provide
ment Board on it at the appropriate time after to increase in utility as the system becomes still
review by the Executive Directors. more comprehensive. (Seealso Part II, pp. 49-53.)
Selected studies prepared by the Bank's staff InternationalInvestmentInsuranceProposals
have been published in the series of "World Bank
Staff Occasional Papers." Three Occasional Papers Discussions were resumed during the latter part
were published during the year under review: of the year regarding the proposal for the creation
"Automotive Industries in Developing Countries" of an International Investment Insurance Agency.:
by Jack Baranson; "Manufacture of Heavy Electri- A number of major issues were still under con-
cal Equipment in Developing Countries" byAyhan sideration by the Executive Directors at the end
Cilingiroglu; and "Techniques of Project Appraisal of the fiscal year.
under Uncertainty" by Shlomo Reutlinger. InternationalCentre for Settlementof
The Bank is the world's chief repository of in- Investment Disputes (ICSID)
formation on the external debt of developing
countries. Comprehensive information is col- The Convention on the Settlement of Invest-
lected from debtor member countries directly by ment Disputes between States and Nationals of
the Bank, and from creditor country members of Other States, which was sponsored by the Bank
OECD's Development Assistance Committee and came into effect in October 1966, created
jointly by the Bank and the OECD under the two ICSID as a forum for conciliation and/or arbitra-
organizations' Expanded Reporting System. tion of international investment disputes at the
Drhinformation request of the parties involved. By the end of
Durinsthe yaro udebtr revntriew,hex fiscal 1970, 57 states had become parties to the
Itforequest fromvdebt coultries wetails,
rexte d Convention; a further seven states had signed but
It formerly covered complete details, regularly no.e'rtfe. teCnvnin
updated, regarding the status of existing public not yet ratified the Convention.
or publicly guaranteed debt, together with regu- During the year under review, ICSID success-
lar reports on all new such debts incurred. The fully completed a pilot study for the collection,
classification and eventual dissemination of na-
Bank's requirements have now been expanded to toas islation and inteationaliagreement
include annual aggregate reports on non-guar- tional legislation and international agreements
anteed private debt and on grants received. Thus relating to foreign investments. The Centre's own
the constant review maintained of every public Annual Report provides details of ICSID's mem-
debt incurred by member countries (involving bership and affairs.
more than 20,000 individual active items, any
change in which is regularly added to existing Borrowings and Finance
information) is now supplemented by aggregate World Capital Markets'
information on the other major types of capital
flows into the developing countries. Information -The World Bank's borrowings need to be
viewed against the background of conditions in
supplied by the debtor is checked against credi- the capital markets of the world. The Bank relies
tors' reports covering the status of each individual
oftiialranoanand
andcoutrv ggrgate of on sales of Its obligations In these markets for
official loan and grant and country aggregates of the bulk of the funds it lends to its developing
officially guaranteed private credits, member countries; market conditions conse-
This system provides the Bank with a valuable quently have an influence on the amount of funds
source of information for country economic anal- available to the Bank for lending, and the rate of
ysis. The system naturally depends on the accu- interest it charges on its loans in member coun-
racy of countries' reports, but these can often be tries. Moreover, movements in world capital mar-
cross-checked by comparing debtors' and cred- kets influence not only the Bank's own operations
itors' figures. The Bank makes every effort to help during the year, but also the ability of a number
debtor countries improve their debt management, of developing countries to undertake external
accounting and reporting systems; over a dozen
visits have been made to member countries for
this purposeduring
this
the
purpos
pastyear.
thepast during
year.rowings
'The figures in this section refer onry to long-termbor-
undertakeni by external boIrrowers on loreign
Detai!ed information is regardedasstrictly con- and international markets in calendar 7969. For the pur-
fidential by the Bank, but basic data on debt pose of this section, "long-term" borrowing is taken to
include any externalborrowingwith a maturityof more
trends and aggregatesare made availablewhere than one year.

32
 borrowings on these markets. Consideration of on these markets in calendar 1969, with compar-
capital market conditions, and especially of move- ative figures for earlier years, are shown in Annex
ments in borrowing costs, is therefore of direct Table 11.
relevance to the development effort. The decline in total sales of long-term obliga-
In calendar 1969. total long-term foreign and tions on world capital markets in 1969 occurred
international issues by all external borrowers on within the framework of a further general rise in
world capital markets declined for the first time borrowing costs during that year for all types of
in six years to an aggregate of $6,694 million issuers. The movement has broadly continued
equivalent. This was the second highest annual through the first six months of calendar 1970,
volume recorded, but represented a fall of 9% as indicated in Annex Table 12.
below the record $7,371 million equivalent re- In the United States market, yields on new is-
-ported in 1968. All major categories of issuers sues of high-grade, long-term domestic corporate
except those in the industrialized countries bor- obligations reached a new peak in December
rowed less on the foreign and international mar- 1969. After declining in early 1970, a further up-
kets than they did in 1968. Details of offerings ward surge began in February and, with a brief

WORLD BANK
Source and Application of Funds
Fiscal Year Ended June 30, 1970
(MillionUSdollars)

Source

Borrowings
Newandrefunding
issues..
.. 735
Delivery soldin prioryears ....
of bonds 98
Increasein debtoutstanding
asa result
of currencyrevaluation 90 923 ~4

Repayments
of loans
Sales
andcallsonparticipations
in loans... 2% 13%
Capital used..
subscriptions 39

Netincome
From
operations
...... . 213
Gainfromcurrency
revaluation--net 3 216
1702

Application

Loandisbursements. . 772
asa result
in loansoutstanding
Increase
of currency
revaluation
-net... 96 868S
Debtretirement....1 M %
on IDAtransfer
Payment 2%
Other.
. .. . 2

.....
TotalApplication 1360

in cashandliquidsecurities
Balance-Increase
1702

33
 Ethiopia-Telecommunications. Customers
waiting to make telephone calls at the pay
station at Gondar. The operator on the left
makes the necessary connection, indicates
the booth to be used and collects the
charge. Four World Bank loans amounting
to $13.7 million have helped to develop
the Ethiopian telecomm unications system-
the first loan wasrade 19 years ago.

interruption, continued to a new record level of 1,406 million in 1968. Borrowings by the World
over 9toc in mid-May. Bank amounted to $713 million of the calendar
Similar, though less dramatic, movements in 1969 total, compared to $1,240 million in calen-
the cost of long-term borrowings occurred in dar 1968. (Seealso below pp. 35-36.)
other major capital markets, and in markets for Europe was the principal market for long-term
long-term foreign and international obligations, external borrowings in 1969 for the fourth con-
in the German market, which was the largest secutive year. Sales of obligations in this market
source of foreign issues (excluding international totaled $4,976 million. Within Europe, the German
issues) after the United States during the year, the market was the largest supplier of funds, absorb-
costs to corporate issuers increased during 1969 log foreign issues amounting to the equivalent of
by more than a full percentage point, to over $1,112 million. In addition, international issues
7D/2 Os and then rose further to the 9d level in the denominated in Deutsche mark and sold on the
first half of 1970. Long-term rates in the markets Eurobond market totaled $966 million equivalent,
for foreign and international issues denominated 31% higher than in the previous year.
in US dollars and Deutsche mark also increased
substantially in the year, with rates on issues de- Issuers located in the industrialized countries
nominated in Deutsche mark rising proportion- sold long-term obligations totaling $3,790 million
ately faster, to a point where the spread between in Europe during 1969, including the equivalent
yields on issues denominated in US dollars and of $974 million of foreign issues sold on the Ger-
Deutsche mark had virtually disappeared. man, Swiss, B critish, an Belgian markets; and the
Issuers in the industrialized countries under- equivalent of $2,816 million sold internationally
took long-term borrowings totaling $5,259 million on the Eurobond market. Total European sales by
equivalent during 1969 79% of the year's total this class of issuers in 1969 were nevertheless $75
and an increase of $128 million over 1968. The million below similar sales in 1968.
increase in such borrowings was, however, the United States corporations and their affiliates
smallest in six years; a $635 million rise in issues were the largest borrowers in Europe, but tr
sold by borrowers located in Europe (to a total of long-term issues, totaling $1,436 million in the
$1,601 million) was largely offset by a decrease form of straight debt and convertible bonds, rep-
of $510 million in issuessold by borrowers located resented a decline of 35199 compared with 1968.
in other industrialized countries (to a total of Canada, with borrowings equivalent to $315 mil-
$3,658 million). lion, of which issues totaling the equivalent of
Long-term borrowings on world capital markets $184 million were sold internationally and $131
by issuers in developing countries and by inter- million in Germany, was the second largest bor-
national developmnent institutions fell in 1969, rower in Europe in 1969. Other important borrow-
both in absolute amount and as a proportion of ers in the European markets in the year were
the year's overall total. Such borrowings in 1969 issuers in the United Kingdom withi sales totaling
amounted to $1,330 million equivalent (about $264 million equivalent;- Japan, $261 million;
20% of all issues sold), compared with $2,046 France, $241 million; Germany, $229 million; the
million or 28% of total sales in 1968. The develop- Netherlands, $179 million; and Italy, $169 million.
ing countries borrowed $465 million in 1969, a All these borrowings showed large increases over
decrease of $175 million from the previous year, the previous year, with the exception of those of
and borrowings by international development in- issuers in the Netherlands, which remained vir-
stitutions dropped to $865 million compared with tually unchanged.

34
 The developing countries undertook long-term equivalent, compared with the previous fiscal
borrowings totaling $216 million in Europe in year's record level of $1,224 million equivalent.
1969. Argentina borrowed the equivalent of $60 A further $172.4 million was, however, added in
million, made up of public offerings in Germany 1970 to the funds available to the Bank for lend-
and Switzerland and two offerings internationally. ing, as a result of unusually large sales of items
Official agencies of the Government of Mexico from the Bank's portfolio of outstanding loans:
borrowed $61 million in the international market such sales had totaled only $35 million in fiscal
in Europe. Israeli corporations sold a total of $35 1969. (See also below, and page 37.) The Bank
million in Luxembourg and internationally in Eu- did not borrow in the United Statesor Switzerland
rope during the calendar year. (both traditionally substantial suppliers of bor-
The United States market supplied a total of rowed funds) during fiscal 1970, and undertook
$1,717 million to long-term foreign borrowers new money borrowings in Germany of DM 150
during 1969. By far the bulk of the year's borrow- million as compared to DM 1,600 million in fiscal
ings in this market was undertaken by issuers in 1969.
Canada, who placed obligations amounting to The $735 million borrowed by the Bank in fiscal
$1,456 million, an increase of $195 million over 1970 included $362 million equivalent of obliga-
1968. The remainder of the total was made up by tions sold to raise new funds, and $373 million
relatively small borrowings by affiliates of one equivalent of refunding obligations that replaced
German and one Japanese corporation (together items that matured in the period. In fiscal 1969,
amounting to $12 million), and by a number of new borrowings had totaled $851 million equiva-
developing countries, whose combined borrow- lent, and refunding obligations sold had also
ings in the US market totaled $250 million dur- amounted to $373 million equivalent.
ing the year, compared with $290 million in 1968. The principal supplier of new borrowed funds
Israel was the largest such borrower, with issues in fiscal 1970 was The Bank of Japan, which lent a
amounting to $151 million. Other developing total of Y 72,000 million (US$200 million equiva-
countries whose issuers placed obligations in the lent) to the World Bank. These were the 'World
US market during the year included Argentina Bank's first Yen borrowings. When announcing
($51 million), Brazil ($1 million), Colombia ($1.1 the loans, The Bank of Japan stated that it had de-
million), Mexico ($26 million), the Philippines cided to extend them on the basis of recent de-
($1 l million) and Venezuela ($8.2 million). velopments in Japan's balance of payments which
As already noted, salesof long-term obligations had added materially to the country's monetary
in world capital markets by international develop- reserves. The Bank of Japan added that further
ment institutions totaled $865 million in 1969. factors influencing its decision regarding the loans
The Asian Development Bank floated its first bond fcrs inlen its decision rgardi the
dloan
issu year,
ear,a were
ment 'the great contribution toward the develop-
issue during this durng
a DM60
tis illin pulic
DM 60 million public of the Japanese economy" made by the
offering of 7% bonds in the international market World Bank, and a desire on the part of Japan to
in Europe. The Inter-American Development Bank help the World Bank's activities and thereby
sold issues equivalent to $137 million in the year, stren then international monetary cooperation"
tapping the markets in Austria, Germany and Italy, g
and the international market in Europe. In the Lending byThe Bankof Japan to theWorld Bank
previous year, the IDB had sold issues equivalent was divided into two separate loans of Y 36,000
to $166 million. Sales by the World Bank again million each, in February and March 1970. Terms
represented a major proportion of all borrowings were favorable by comparison with those gener-
for development financing; a total of S713 million ally prevailing in world capital markets and in-
was raised in calendar 1969 compared with 51,240 cluded interest at a rate of 7.14% a year and
million in calendar 1968. The Bank's calendar 1969 repayments of principal serially over the period
borrowings were made up of a public offering in 1973-75.
Germany of DM 250 million (US$62.5 million In addition to supplying the equivalent of $200
equivalent at the time of offering), private place- million in new funds during the year, The Bank
ments in Germany totaling DM 1,130 million of Japan also supplemented the World Bank's
(US$282.5million equivalent at the time of place- lendable resources by purchasing more than $160
ment) and sales of $367.7 million of Two-Year million of the outstanding debt of the World
US Dollar Bonds to central banks, other govern- Bank's Japanese borrowers (see below, page 37).
ment accounts and international organizations. In Germany, the Bank raised new funds totaling
DM150 million through placement on Julyl,1969,
The Bank'sBorrowings of an issue of 6% Bonds due over the 1972-81
The Bank's borrowings in its 1970 fiscal year period with the Deutsche Genossenschaftkasse.
(July 1, 1969-June 30, 1970) totaled $735 million Central banks and other governmental institutions

35
in 61 countries, together with international organi- Increase in Capital: Bank
zations, supplied the remainder of new funds On January 6, 1970, the Executive Directors of
raised in the year. The Bank placed with these the Bank submitted to the Board of Governors a
institutions two issues of Two-Year US Dollar report and a draft Resolution providing for in-
Bonds totaling $349.5 million, made up of a $175 creases in the subscriptions of 75 of the Bank's
million issue bearing an interest rate of 8%, and member countries corresponding to the selective
a $174.5 million issueat 88%. $225 million of the element of the increases in their IMF quotas re-
total replaced two maturing issues and $124.5 sulting from the Fund's Fifth General Review of
million was added to the resources of the Bank. member countries' quotas.
The outstanding funded debt of the Bank was To accommodate the recommended increases
increased during the year by the delivery to in- in subscriptions and to provide the Bank with
vestors of $97.6 million of bonds sold in previous sufficient authorized capital for new members'.
years on a delayed delivery basis. The US dollar subscriptions and future increases in individual
equivalent of the principal amount of outstanding members' subscriptions, the Executive Directors
Bank debt was raised by a further $90.3 million as concurrently submitted to the Board of Governors
a result of the upward revaluation of the Deutsche a report and a draft Resolution authorizing an in-
mark. crease of $3,000 million in the authorized capital
A total of S377 million equivalent of debt ma- stock of the Bank.
tured in fiscal 1970. Virtually the whole of this Voting on the two Bank Resolutions was still
debt was held by the Deutsche Bundesbank and in process at the end of the fiscal year. The Reso-
by other central banks and government institu- lutions provide, however, as does the parallel
tions located outside the United States. The Bank Fund Resolution, that no increase shall become
also retired a further $59 million ^. .S1. . |
equivalent ofr ~~~effeciepo
ective prior tooOtbr3 90
October 30, 1970.
debt by means of sinking fund and purchase fund
operations during the year. Other Financial Operations: Bank
At June 30, 1970, the Bank's outstanding funded Loans held by the Bank on June 30, 1970, net of
debt stood at $4,568 million equivalent an in- exchange adjustments and including those not yet
crease of $487 million during the year. Holdings effective, totaled $9,868 million, an increase of
of the Bank's obligations continued to broaden in- $1,247 million in the fiscal year. Effective loans
ternationally in fiscal 1970. The estimated division held totaled $8,889 million as of June 30, 1970.
of holdings by investors as of June 30, 1970 was Loan disbursements amounted to $772 million,
about 37% in the United States; 29% in Germany; compared with $762 million in the previous year.
6% in Switzeriland; 5% in Japan; and 4% in The cumulative total of disbursements as of June
Canada. The remaining 20% is held largely by 30, 1970, amounted to $10,355 million; the un-
central banks and other governmental accounts disbursed portions of loans held by the Bank was
in some 75 countries. $3,905 million at the end of the fiscal year, com-
The further rise in the costs of funds to all bor- pared with $3,007 million at the end of fiscal 1969.
rowers during the year under review was reflected Disbursements in fiscal 1970 continued to rise
D
in the Bank's borrowing costs. These averaged at a slower rate than commitments. This is partly
7.69% in fiscal 1970 compared with averages of attributable to the normal procedures of placing
6.46% in fiscal 1969 and 6.17%Xoin fiscal 1968. On equipment orders and to the time consumed in
August 1, 1969, the Bank increased its lending the manufacture, delivery and installation of such
rate from 6 2% to 7%. The Bank's 7% lendi equipment. But the pace of disbursement on loans -
rate wasmaintained through The remaink's /of the is also affected by problems of project program-
rate was maintained through the remainder of the ming and management leading to delays in the
fiscal year, reflecting its continuing efforts to keep placing of orders and in implementation of proj-
the cost to its borrowers of its loans at as low ects. The Bank Group is increasing its efforts-
a level as is compatible with the maintenance of both through the provision of funds for technical
its own sound financial position. assistance in its lending operations and through
The cash resources of the Bank continued to other activities designed to help borrowers im-
increase in fiscal 1970. On June 30, 1970, they prove project management-to speed the process
stood at $2,092 million, or some $244 million of project implementation, and hence the flow of
higher than their level at the end of fiscal 1969. disbursements.
The Bank's cash resources have been built up to Repayments by the Bank's borrowers were $442
meet the increase in disbursements which is ex- million in the period, including $329 million paid
pected to follow the rapid recent rise in com- to the Bank and $113 million to investors who had
mitments made by the Bank. purchased borrowers' obligations from the Bank.

36
Cumulative repayments as of June 30, 1970, were lated earnings and borrowings) through fiscal
$3,763 million: $2,126 million to the Bank and 1970 was 3.3%.
$1,637 million to purchasers of its loans. The higher level of Bank Group activity, which
The year's sales of participations and of items has entailed the recruitment of large numbers of
from the Bank's loan portfolio amounted to $172.4 new staff (see below, page 39), together with gen-
million, the highest level in any year since fiscal eral increases in costs, raised the administrative
1964, and an increase of some $137 million over costs of the Bank and IDA to $61 million, com-
such sales in fiscal 1969. The increase is almost pared with $45 million in the previous fiscal
entirely attributable to the purchase of $162.5 mil- year. After deducting $16 million of management
lion of portfolio items by The Bank of Japan. By fees charged to IDA (compared with $4 million
June 30, 1970, the aggregate of sales of participa- charged in 1969), administrative costs of the Bank
tions in loans and from loan portfolio was $2,350 amounted to S45 million compared with $41 mil-
million. lion in fiscal 1969. The increased management fee
During the year the Bank fully liquidated spe- charged by the Bank to IDA in fiscal 1970 resulted
cial interest-bearing deposits it had made in the from a change in the basis upon which such fees
Reserve Bank of India to offset temporarily part had been determined in 1968 and 1969. This
of the effect on India's balance of payments of change was designed to make the fee charged to
debt service payments to the Bank during the year IDA reflect more accurately the staff time taken up
ended March 31, 1968. The final withdrawal, by the IDA share of total Bank/IDA operations.
amounting to $8.7 million, was made in Febru- At their 1969 Annual Meeting, the Board of
ary 1970; no further deposits of this nature are Governors approved a transfer of $100 million of
planned. the Bank's net income for fiscal 1969 as a grant
to IDA; the remaining $71 million of that year's
Income and Expenditure: Bank net income was allocated to the Supplemental Re-
Net income for the fiscal year was $213 mil- serve Against Losseson Loans and from Currency
lion, an increase of $41.5 million compared with Devaluations. After the close of the 1970 fiscal
the previous year. The main factor in this sharp year the Executive Directors allocated $113 mil-
rise to a new record level of net income was a lion of net income for the period to the Sup-
substantial increase in the level of the Bank's cash plemental Reserve, raising it to $1,150 million and
and liquid securities accompanied by a higher total reserves to $1,442 million. The Executive
level of yields on such securities. There was also Directors at the same time recommended that a
an increase in interest income from loans, reflect- further $100 million be transferred to IDA as a
ing increases in outstanding loans receivable and grant.
the average rate of interest on such loans.
Commission still charged on outstanding por- Finances: IDA
tions of a fewof the Bank's earliest loans dwindled The second general replenishment of IDA's re-
to about $382,000 as additional principal on these sources, providing $1,201.4 million equivalent of
loans was repaid. Commission was credited to the additional funds for development credit commit-
Special Reserve which amounted to $292 million ments by the Association, became effective on
on June 30, 1970. July 23, 1969. To date 17 Part I countries with
Gross income for the year was $504 million pledges aggregating $1,140.96 million have de-
compared with $410 million the previous year. posited notifications of their acceptance of the
Contributing to the increase were gains of $61 terms of the replenishment agreement. Sixteen
mnillion in investment income to $149 million; of of these countries have paid in two installments
$30 million in income derived from loans to $344 of their shares in it, and one country has paid in
million; and of $3 million in other income to advance the third and last installment, due in No-
$11 million. vember 1970. A further $12.1 million is being sup-
Expensesin the period totaled $291 million, $53 plied by Switzerland under a loan related to the
million more than in fiscal 1969. Bond and note second replenishment agreement. One country
interest and issuance costs rose for the third con- has not as yet deposited notification of accept-
secutive year, reflecting increases in the Bank's ance, but is expected to do so on completion of
funded debt and the rising costs of funds bor- action on pending legislation.
rowed in the market. The total of these expenses New credits signed by IDA in the fiscal year
in fiscal 1970 was $246 million, compared with totaled $606 million bringing the aggregate of
$197 million in 1969. Taking into account the sub- credits since the start of operations to $2,822 mil-
stantial amount of funds derived by the Bank lion gross on June 30, 1970. Funds available for
from its paid-in capital and accumulated earn- further commitments on that date amounted to
ings, the overall cost of all funds (capital, accumu- $409 million, exclusive of the $100 million which

37
the Executive Directors recommended as a trans- other IFC staff changes appear in IFC's own An-
fer from the Bank's net income to IDA after the nuai Report.
end of the fiscal year. It was announced in May 1970 that Mr. Irving
Disbursements by IDA in the fiscal year S. Friedman would hand over later in the year his
amounted to $143 million, a decrease compared duties as The Economic Adviser to the President of
with the $256 million disbursed in fiscal 1969. the Bank to Professor Hollis B. Chenery of Harvard
The decline is primarily attributable to the low University. Mr. Friedman will take sabbatical leave
level of commitments in fiscal 1968 and early fis- from the Bank after Professor Chenery's arrival.
cal 1969 when IDA was hampered by lack of A number of other staff and organizational
funds. changes took place during the year. Mr. Abdel G.
The rapid recent growth of IDA commitments El Emary became Special Adviser to the President
and the still faster growth of developing countries' with effect from January 1, 1970; Mr. Michael L.
needs for concessionary development finance of Lejeune succeeded Mr. El Emaryas Director of the
the kind IDA provides make it essential that the Eastern Africa Department; and Mr. Munir P.
Association obtain more funds to meet the legiti- Benjenk was promoted to succeed Mr. Lejeune as
mate requirements of the developing countries. Director, Europe, Middle East and North Africa
On July 21, 1970, after the end of the fiscal year, Department.
the Executive Directors recommended and trans- Recent rapid increases in Bank activities in the
mitted to member governments for approval a Western Hemisphere and the further increases
proposal for a replenishment of IDA's resources planned, together with the Bank's determination
for a three-year period. The eighteen Part I coun- to ensure that proper attention is still given to the
tries, three Part II countries (Ireland, Spain and needs of all the countries in the region, led to the
Yugoslavia) and one non-member, Switzerland, creation as of January 1, 1970, of two new Area
proposed making available a total of approxi- Departments to replace the Western Hemisphere
mately $813 million per year, the first payments Department. Mr. Gerald Alter, who had been that
being scheduled for November 8,1971. Itwas also Department's Director, became Director of a new
agreed that the voting power of the Part I coun- South America Department; Mr. Edgar Gutierrez,
tries should be adjusted so as to reflect more ac- formerly Director of the National Planning De-
curately the share of each of them in the total partment in Colombia, joined the Bank as Director
contributions of the Part I countries to IDA. It was of a new Central America and Caribbean De-
further agreed that the Part II countries be given partment.
the opportunity to make additional subscriptions A new Industrial Projects Department was set
on easy terms to IDA in order to permit them to up during the year, to deal with the rising volume
maintain the relative voting power of the Part II of Bank activity in this sector. The Department will
countries as a group. work closely with appropriate I FC staff, and a joint
Annual transfers from net income in the form Bank-IFC committee has been set up to coordi-
of grants have been made by the Bank to IDA in nate the Bank Group's overall work in the field of
each year since 1964; the six-year total amounts industrialization. Mr. Hans Fuchs, formerly Di-
to $385 million. These transfers have been of rector of IFC's Engineering Department, was ap-
sums which would otherwise have been available pointed Director of the new Bank Department in
for distribution as dividends to the Bank's member October 1969.
countries and which are not needed for allocation Directors were appointed during the year to the
to reserves or otherwise required to be retained three Projects Departments established in fiscal
in the Bank's business. After the close of the 1970 1969 to deal with new areas of lending, and new.
fiscal year, the Bank's Executive Directors recom- Directors were assigned to two others. Dr. Alfred
mended to the Board of Governors a further trans- Koch, formerly Secretary General of the German
fer to IDA in the amount of $100 million. This Institute for Tourism Economics, joined the Bank
recommendation will be considered by the Gov- in September 1969 as Director of the Tourism
ernorsatthel970Annual Meeting inCopenhagen. Projects Department; Dr. Kandiah Kanagaratnam,
formerly Chairman of the Family Planning and
Population Board of Singapore, joined the Bank
Organization and Administration in September 1969 as Director of the Population
Projects Department; Mr. Robert Sadove, formerly
Director of the Bank's Transportation Projects De-
Staffand Department Changes partmentand Acting Director of the TourismProj-
During the year under review, Mr. William S. ects Department, was appointed Director of the
Gaud succeeded Mr. Martin M. Rosen as Execu- Special Projects Department in October 1969.
tive Vice President of IFC. Fuller details of this and At the same time, Mr. A. David Knox, formerly

38
Director, Public Utilities Projects Department,
was appointed Director of the Transportation
Projects Department, and Mr. Mervyn Weiner was
promoted to become Director, Public Utilities YOUNG PROFESSIONALPROGRAM
Projects Department.
Appointments
Cumulative Currentlyin Service,
UndergoingTrainingor Committed
Recruitment Afghanistan ............... ....... 1
The activities of the Bank Group continue to Algeria .......................... 1
grow rapidly, both through sharp increases in Argentina ........................ 2
existing types of assistance to member countries, Australia ......................... 3
and through expansion into new kinds of opera- Austria .......................... 4
tional and analytical activity. The Bank is deter- Belgium .......................... 7
mined that the consequent rising overall workload Brazil ............................ 2
will not in any way diminish the high professional Canada .......................... 6
standards which have always been applied to its Chile ............................ 1
lending and other activities. The intensive pro- China ............................ 1
gram of recruitment of highly qualified new staff Colombia ........................ 1
initiated during the previous year has, therefore, Finland .......................... 1
continued in fiscal 1970. 293 professional staff France ........................... 15
members were recruited for the Bank during fiscal Germany ......................... 7
1970, compared with 208 recruited during the Greece .......................... 1
previous fiscal year. After allowing for promotions India ............................ 11
of existing staff and departures, the increase in Iran ............................ 2
professional staff between June 30, 1968 and June Ireland .......................... 1
30, 1970 was 426, an expansion of 57%. Israel ............................ 2
The recruitment program has two main objec- Italy ............................ 7
tives: to atttact to the Bank a sufficient number of Jamaica .......................... 1
new staff members of the high caliber needed to Japan ............................ 4
maintain the quality of the Bank's work at a time Lebanon ... ..................... 1
when the quantity of work undertaken is increas- Malaysia ......................... 1
ing rapidly; and to broaden the nationality base Mexico .......................... 1
of its staff. The second requirement involves Morocco ......................... 1
recruitment of staff from countries which have Netherlands .............. ........ 7
hitherto supplied few if any staff members to the New Zealand ............ ......... 2
Bank, and the consequent reduction of the pro- Nicaragua ........................ 1
portion of total staff represented by nationals of Nigeria .......................... 2
countries which have traditionally been large sup- Norway .......................... 3
pliers of staff. The success of recruitment efforts Pakistan ......................... 5
during the year in this respect is reflected by the Philippines ....................... 3
further decline in the percentage of professional Rhodesia ......................... 3
staff represented by nationals of the two largest Sierra Leone .............. ........ 1
traditional suppliers-the United Kingdom and South Africa .............. ........ 3
the United States. By the end of fiscal 1970, this Spain ............................ 4
group represented 430/. of all professional staff, Sweden .......................... 8
compared with 48.2% of a smaller total on June Switzerland ....................... 4
30, 1969, and 49.4% of a still smaller total on June Trinidad and Tobago ....... ........ 1
30, 1968. The number of nationalities represented Tunisia .......................... 1
among professional staff rose from 55 to 71 dur- Turkey ........................... 1
ing fiscal 1970. United Arab Republic ....... ....... 2
The Bank takes particular care to avoid depriv- United Kingdom ......... ......... 13
ing its member countries of key personnel who United States ............. ........ 15
may seek employment with it. In such instances Uganda .... , 1
it may offer fixed term appointments, in the belief Yugoslavia ....................... 1
that the period of service such staff undertake at Total ......................... 166
its headquarters should provide them with valu-
able experience which can be put to good use
when they return home.

39
 As of June 30, 1970, the total staff of the Bank, ments. At the end of the year action was pending
professional and other, amounted to 2,252, com- on membership in the Bank of Cambodia, Equa-
prising nationals of 85 countries. torial Guinea and Malta, and on membership in
The Bank's Young Professional program con- IDA of Cambodia, Malta, Trinidad and Tobago,
tinued to expand its activities during the year. Uruguay, Venezuela and Southern Yemen.
94 staff members who had originally entered New members' subscriptions to the Bank and
the Bank under this program have now been as- increases in three existing members' subscriptions
signed to regular Bank/IDA or IFC posts. A further raised the Bank's subscribed capital from $23,-
40 Young Professionals are now in training and an 036.4 million to $23,158.8 million during fiscal
additional 32 are expected to join the program 1970-an increase of $122.4 million.
during the next few months. This will bring the Increases in subscriptions by two other coun-
total number of Young Professionals serving the tries-Panama and Uruguay-totaling a further
Bank Group to 166 from 47 countries as shown $21.7 million were pending at the end of the year.
in the table on page 39. Executive
Directors
During the fiscal year there were several
Office Facilities changesamong the Executive Directors. Mr. Covey
During the year, the Bank completed occupa- T. Oliver, Executive Director for the United States
tion of the recently constructed building which since November 1968, resigned on November 3,
forms part of its headquarters in Washington. The 1969, and was succeeded on November 4, 1969,
European Office moved to a newly constructed by Mr. Robert E. Wieczorowski. Mr. E. W. Maude,
building, at 66 Avenue d'lena, Paris, which was Executive Director for the United Kingdom since
formally opened on May 20, 1970. August 1967, resigned on October 21, 1969, and
was succeeded on November 7, 1969, by Mr.
Derek J. Mitchell. Dr. Ernst vom Hofe, Executive
Director for Germany since May 1968, resigned
Membership and ExecutiveDirectors on January 31, 1970, and was succeeded on Febru-
ary 1, 1970, by Dr. Wilhelm Hanemann. Mr. S.
Membership Jagannathan, Executive Director for India since
March 1968, resigned on June 15, 1970, and was
The membership of the Bank rose from 110 to succeeded on June 23, 1970, by Mr. S. R. Sen.
113 governments during fiscal 1970. Swaziland Mr. Hideo Suzuki (Japan), Executive Director for
joined the Bank in September 1969, Southern Burma, Ceylon, Japan, Nepal and Thailand since
Yemen joined in October and the Yemen Arab November 1966, and also for Singapore since
Republic in May 1970. Swaziland and the Yemen 1968, resigned on June 15, 1970. Mr. Seitaro
Arab Republic also became members of IDA; Hattori was elected to succeed him with effect
Guinea, already a member of the Bank, joined from June 16, 1970.
IDA in September 1969. IDA's membership thus
increased during the year from 102 to 105 govern- Audit Committee
An Audit Committee, made up of five Executive
Directors designated on the basis of seniority of
Njw Members'C55 usits -ggXEF;0000gg;ti service, was established on May 5,1970. The Coim-
(Milliorisof- 000>\ i
USdoS=d}llars)4 0- mittee is responsible, under its terms of reference,
Count4ik >;X;S02 <rjJ0;
t^= r tifor the nomination to the Executive Directors of
00>AEmontJ
:Swaziland ;0 1;0ut0i; W;; j; -L0f000>\00
00006A400 a firm of auditors to conduct the annual audits of
SouthernYemen 0 000<
X00f;00000t00iisi00000
23. the accounts of the Bank, IDA and IFC; to discuss
ti;;Xd!SYemnen
Arayb
Repub>izlic
0-;iE000200j008.50 with the auditors the scope of their examination;
tal 38.4 and to review the Financial Statements and the
Auditors' Opinion. The Committee will also con-
Increased Sbscriptionssuit with the auditors on the most effective sys-
Countryt::0t0tt0k ';0rom To Amoutd tems of internal controls over the BankGroup's
DemocraticRepubicH;7::7: :7:expenditures. The Bank Group's auditors have
SStoF:if
tXheCongo o0.0:
6t;tS; 096.tt0 36.a 20 traditionally been chosen from among private,
0: $S0NiiVgDeSriia
500 0 66.7 .1Q06.700 4000:Z.Q;00;
0 independent, internationally established firms of
J t00)t000.0000000
0000400
32.0000:
; 0000040;.0i 8.0 accountants, and this will continue to be the prac-
Todktal 00X0000|9X a;;
00e4.o;X000f; tice. The Financial Statements and the Auditors'
Opinions are reviewed by the Executive Directors
before subm-ission to the Board of Governors.

40
PARTII
 x - :t~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

4 4|
PART11
TRENDSAND OUTLOOK
IN DEVELOPMENTAND
DEVELOPMENTFINANCE

Recent Trends in Trade and Growth The share of developing countries in world ex-
ports declined slightly in 1969, from 18.5% to
of the Developing Countries 17.7%, and accounted for somewhat more than
40% of all exports of primarv products and 6% of
Recent Trends in Trade of all manufactured exports. An analysis of world
Developing Countries trade by origin and destination (see Annex Table
World trade in 1969 recorded an impressive in- 2) confirms the prevailing trends of the past dec-
crease of 13% by value, surpassing even the high ade: the expansion of developed countries' ex-
rates of growth previously experienced in 1964 ports has been absorbed by the developed coun-
and 1968. The exports of the developed countries tries themselves; the trade flow of developing
increased by 15%. The developing countries, countries is increasingly directed toward the devel-
whose rate of trade expansion has typically been oped countries; and the proportion of developing
slower than that of the developed countries, at- countries' exports to other developing countries
tained a 9% rate of export growth during the year has been gradually shrinking. Market economy de-
(compared with almost 10% in 1968-see text veloped countries import about three-fourths of
table, page 44). Reflecting these developments, the exports of developing countries, and the pro-
total world exports (including those of centrally portion of developing countries' trade represented
planned countries) achieved a level of $270 billion by exports to other developing countries has been
in 1969, of which $48 billion represented the ex- reduced (from 21.5% in 1961-65 to 19.5% in
ports of the developing countries. If present indi- 1969). This is particularly true of Asia and Africa,
cations are borne out, 1970 may prove to be a where regional trade declined from 23% and 7%
third successive year of noteworthy expansion in of their total trade in 1961-65, to 20% and 6%
the export trade of the developing countries. This respectively in 1969. Only in the case of Latin
expansion has been related to the high levels of America have exports toward other developing
economic activity in developed countries, which countries increased (from 18% to 20%), reflecting
have in turn been reflected in the higher prices for an expansion of trade within the region (from 8%
many primary commodities experienced in 1969. to 12%).
Apart from the removal of trade barriers in the
developed countries and the grant of non-recipro-
Singapore-Ports. Loadingrubberat the Port of cal preferencesto exports of manufacturesand
Singapore.At the Port of SingaporeWorld Bankfinance semi-manufacturesfrom the developing coun-
is assistingthe constructionof additionaldeep-water tries, anotherpossibleway of acceleratingthe ex-
berths,new plant yardand workshop,the provisionof
additional floating craft and cargo-handlingequipment port trade of the low-income countries, as noted
and the provisionof dataprocessingequipment. by the Pearson Commission, is to expand trade

43
 among these countries themselves. The experience beginning in the last quarter of 1969, following
of regional trade arrangements suggests that the widespread frost damage in Brazil; and a short-
prospects for trade expansion are best between term recovery in rubber prices and a sharp rise in
countries which are geographically close to each the prices of non-ferrous metals, reflecting in both
other and linked by good communications net- cases mainly a sudden upsurge in demand. Move-
works, rather than between countries which form ments in the prices of vegetable oils and oil seeds
parts of wider regions, or between different re- were notably divergent, increasing for soft oils but
gions. For example, intra-regional trade among the declining for lauric oils (coconut and palm kernel).
Latin American Free Trade Association (LAFTA) The index rose further in the first half of 1970 (see
countries in the 1960s has not exceeded the level text table and chart, page 45) as prices of some
reached in the mid-1950s, before the creation of commodities continued to rise (notably those of
the Association. i ntra-regional trade rose sharply, coffee, copper, lead, tin and vegetable fats and oils).
on the other hand, among the Central American Economic factors helping commodity price
Common Market countries, from 7% of their total increases in 1969 included generally rising price
exports in 1960 to 25% in 1967; such trade ac- levels in the United States and the strong eco-
counted for 18% of the EastAfrican Community's nomic expansion in Europe and Japan. Never-
total exports in 1965-67, marginally above the theless, many countries have been unable to profit
level in 1960-62. Manufactured products have a from these developments because a number of
dominant position in the intra-regional trade of commodities which figure importantly in their
both these regions. trade have continued to face weakening markets.
Trade expansion has been sustained, over the Prices of rice have been drifting downward from
past year, by rising prices. The World Bank main- their unusually high levels; those of wool and hard
tains an index of commodity prices, based on price fibers have been particularly weak in recent pe-
quotations for 38 primary commodities which ac- riods. Prices of tea, iron ore and manganese ore
count for three-quarters of the total exports of the have continued to decline for a decade now; cot-
developing countries. The index reached a ten- ton prices on the other hand, although lower than
year high in 1969 of 107 (1960-62 = 100) if petro- in 1968, are generally being well maintained.
leum exports are included, and of 118 excluding The behavior of commodity prices in 1969 was
petroleum. Factors which contributed to this situ- reflected in a continuation of the gradual improve-
ation included a continuation of the four-year rise ment in the terms of trade of the developing coun-
in cocoa prices, which reached a record high for tries which has been registered in most years since
the decade in 1969; the negotiation of the 1968 1962. The regional impact of this favorable de-
International Sugar Agreement, which came into velopment was uneven, however, owing to the
effect in January 1969; an increase in coffee prices geographical concentration of production of the

196i0 1961 1952 1963X 9 19 0 1967 1968 i 9

2 .
Primary
Products 56.2 58.0 59.7 65.0 7. 37 7.1 7. 45 9.

Mauatrs6. 73. 79. 86.3 988 1<0997 31.2l0X);lS0

122.5 149.2 10. 1760 i
XfuDevelopedCutris .85.0mio 90.300 94.9: 103.6117.3
128.2 0 1 16. 193.00
0\: Develo ountries
00$0tfspinig; .27U0-10)00j.4 $S0;031.5i
27.7 29.1 CQ 34.60 36.5 38.78 40.1X 44.1 48.28
0i0;00017

Manufactures.3.8 4.+0 4.3: 4.9 52t 6. 7.600 8. 9,7 ;

11.4t;0

Manufactures.100~9 101 10 08 0 0 0 0 0 1
Develping
countis(900 . 3 8 8 8 1 8 1 9 1 9

'Incluf centr
D ;0X,0des
w; plaonedconries;nlsa
0 ally 5 incfludesC
unallocated
A S ag miscellaneous
d yrodufctXst
2
-
.,. x des0 refne metls wh000000S;X00oich
are0\009
includ amon anf actures.i000000
j:0 0:ff,00090; 0i;;00:0
INDEX OF SELECTEDCOMMODITYPRICES
(PriceIndex1960-62=100)

1801 . I 180

.160 . . ,< it 76 160

MetalsandOres

140 140

120 - Food A , Totalindex(Excluding

Petroleum)- , 120

a Inldex
.00 - Timber,Textiles,andFishmeal (IicludingPetroleum)100
^^ ---
----- '- ,, -
Agricultural
Non-Food _ a _ - - Q

80' - I1 I 80
1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970
Ist Quarter

commodities which were the main contributors Recent Trends in Growth

to the increase in prices-coffee, cocoa and non- in Developing Countries
ferrous metals. Consequently, Latin America and Growth in developing countries, measured in
Africa experienced conspicuously favorable terms Grent in terms, rosecountries,emeasue in
of trade, whereas those for Asia, which had been than in 1968 and previous years, both in overall
declining throughout the past decade, failed to and per capita terms. Expansion in real terms has,
however, continued to be held back by the per-
sistent rise in price levels. Preliminary and in-
INDEX OF SELECTED
COMMODITYPRICES complete data from 74 countries indicate an
Tntai-62 Ttl= 100) AicMeasaverage 6.7% rate of growth in 1969, an improve-
Index index ral d NAn- and Others' ment on the 5.9% recorded in 1968 and the 5.1%
(Incl.Pet.) (Excl.Pet.) Food Ores average for the years 1961-1965. With population
1960. .. 104 104 104 108 102 97 growth holding steady at 2.5% annually, the per
1961 99 99 98 98 100 100 capita increase is estimated at 4.1% for 1969, as
4962.... 91 97 98 94 98 102 cpt nraei siae t41Oofr16,a
1963
. 101 104 116 93 98 99 compared with increases of 3.3% in the previous
1964
. 104 110 119 94 127 98 year and 2.5% in the 1961-1965 period. As the
1965
. 103 111 107 94 151 106 average price level is estimated to have risen by
1966... 104 113 109 92 163 106 close to 3% for the world as a whole, expansion
1968. 101 108 111 88 138 110 in real terms was probably held back to 3.5-4%
1969... 107 118 121 95 156 115 overall and to somewhat over 1% on a per capita
1970istquarter 111 124 128 96 172 116 basis. The developing world fared well as com-
'Timber,textilesandfishmeal. pared with industrialized countries, whose GDP
Source:WorldBank. increase of 4.9% in 1969 was below the 5.4%
achieved in 1968 and the 5.1% average over the
1961-1965 period. On a per capita basis, growth in
show much change. The long-term decline in industrialized countries was about the same as for
prices of products like tea, iron ore and manganese developing countries-4% in 1969, down from
ore may have been partly responsible for this 4.4% in 1968 but little changed from previous
diverse behavior. years. These trends are shown in Annex Table 1.

45
 1
As in past years, growth was not uniform in the flow of net official financial resources has
1969, reflecting a wide range of economic and increased from about $3.3 billion to almost $7.3
population changes in different areas.The highest billion; most of this (well over 90°JOin most years)
rate of growth was registered by the East Asian is official development assistance. The total net
countries, with a sharp rise of 10% in 1969, com- flow of resources from all sources, official and pri-
pared with that of 7.8% registered by these coun- vate, has more than doubled-from a level of
tries in 1968 and an annual average rate of growth about $6.1 billion in 1956 to over $13 billion in
of 5.5% over the 1961-1965 period. Despite an 1969-an average compound rate of growth of
above average rate of population growth (of about 6% a year, somewhat less than the average
2.7%), East Asia also showed the highest rate of rate of growth of the GNP of the DAC countries.
GDP increase on a per capita basis-7.1%, com- Preliminary estimates for 1969 indicate that there
pared with 4.9% in 1968 and a 2.7% annual aver- was an increase in total flows of about $100 mil-
age over the 1961-1965 period. A high rate of lion as compared with 1968.
growth was also registered by the Middle Eastern There have been important changes in both the
economies, amounting to 8.7% overall and 5.9% composition of the total flow and its sources since
per capita. This represented a reduction from the 1956. In that year, and throughout most of the
9.2% and 6.3% of the preceding year, but a further period since then, the United States provided
advance from the previous 1961-1965 average about one half, the United Kingdom about 10%,
(7.4% and 4.4%). Recovering from a contraction and France between 15% and 20% of the re-
in 1967-1968, Southern European economies re- corded total net flow. More recently, and particu-
ported a 7.3% advance in 1969; as their popula- larly since 1966, the relative role of these major
tion grew least among developing countries donor countries has diminished. Together, their
(1.5%), their per capita growth (5.7%) was com- contributions had, by 1969, fallen from an histori-
paratively high. In other areas, overall rates of cal level of 75-80% to about 55% of total net
growth were 6.4% for the Western Hemisphere, flows from all DAC countries, although flows from
6.3% for South Asia, and 4.1% for Africa. Wlith the both France and the United States (until 1969)
increase in population ranging from a 3.0% high contin6ed to increase in absolute terms. Overall
in the Western Hemisphere to a 2.4%1olow in growth in the flow of resources has been main-
Africa, per capita expansion was correspondingly tained by rapid expansion in the capital exports
held back to 3.3% in the Western Hemisphere, of a number of other countries. The most im-
2.7% in South Asia and 1.7% in Africa. By far the portant of these in total volume have been Japan
greater part of the growth continued to be ac- and the Federal Republic of Germany; total net
counted for by industrial activity, with agriculture flow from these two countries combined increased
still advancing at a slower pace. Adjusted for price from about $550 million in 1956 to more than
increases, it appears that a number of countries $3.2 billion in 1969. Even more dramatic increases
actually experienced a contraction in their GDP in have been registered in the flows from several of
real terms and several others barely held the levels the smaller European countries, notably Austria,
reached through their earlier advances; this was
more than counterbalanced,however, taking the 'Net flow as used in this Report refers to gross disburse-
ments minus amortization of principal. Further subtrac-
developing countries as a whole, by particularly ton of paymentsof interest yields what is commonly
rapid expansionin other countries in 1969. referred to as net transfer. The relationship among these
concepts for DAC official bilateral flows and flows from
the IBRDand IDA ior severalrecent years is illustrated be-
low (comparable data ior private flows are not available)
The Flow of ExternalFinancial MillionUS dollars'
Resources to DevelopingCountries 1965 1966 1967 19T68S9568

DACOfficialBilateral
The flow of financial resources from the major GrossFlow ......... 6,605 6,949 7,248 7,548 28,350
capital-exporting countries to developing coun- NetFlow ..... 58732 6,17766,828 ,971 3,284
tries and international development institutions InterestReceipts. . 448 491 514 612 2,065
has generally risen since the early 1950s, when NetTransfer ...... 5,425 5,685 5,906 5,985 23,001
global data on these flows began to be collected. IBRDand IDA
Occasional reductions from one year to the next Gross Flow...... . 881 1,054 1,131 1,004 4,070
have usually been followed by a quick recovery Amortization ....... 314 336 359 371 1,380
NetFlow......567 718 772 633 2,690
so that the trend has been one of long-range InterestReceipts ... 254 277 303 335 1,165
growth. The first year covered by the detailed NetTransfer ....... 313 441 469 302 1,525
statisticson aid and capital movementsprepared Note:DataforDACbilateral flowsdonotreflectthemost
recent
revisions
in-
regularly by the OECDwas 1956.Sincethat year, corporated
intoAnnex 4.
Tabte

46
 Denmark, Norway and Sweden, Total flows from Paraguay-Cattle. Rounding up cattle on the Estancia
these four countries amounted to about $520 mil- RiachoNegro,in the Chaco region. World Bank
lion in 1969, nearly twenty times the $28 million loans and IDA creclits are helping livestock
developmentprograms in more than 20 countries in
which they provided in 1956. For the most part, LatinAmericaanclAirica.
this growth is a reflection of decisions on the part
of the governments of these countries to increase
their assistance to the developing countries. The largest single component of this flow has been
From the point of view of the developing coun- private direct investment. During most of the dec-
tries, the composition and terms of the capital ade 1956-65, direct investment (including rein-
available to them are of prime importance. From vested earnings) accounted for between $1.5 and
1956 through 1964, the total net flow of private S2 billion each year, or roughly two-thirds of
capital to developing countries and multilateral total private flows. In 1965 net direct investment
institutions hovered around $3 billion per year, climbed to more than $2.5 billion, and after de-
although it reached a peak of $3.8 billion in 1957 clining to about $2.2 billion in 1966-67 reached
.and fell to about $2.6 billion per year in 1962-63. almost $3 billion in 1968. Preliminary estimates of
During most of the same period, total flows from the OECD Secretariat indicate that the accumu-
official sources increased steadily, rising from lated book value of total foreign direct investment
.about $3.3 billion in 1956 to $6 billion per year in in the developing countries at the end of 1966
the early 1960s, and remaining at about that level stood at about $30 billion. Net additional flows
until 1965. As a result, the private share of total since that time increased the total to a level of
flow fell from 50% in 1956 to some 30-35%/oin some $37-38 billion by the end of 1969.
the period 1962-64. Annex Table 4 illustrates Reverse flows of funds back to the developed
recent developments. While the net flow of of- countries on account of this sizable total of di-
ficial resources has resumed a gradual increase rect investment have naturally been considerable.
(about 4% a year) private flows have increased Consolidated balance of payments accounts of
by almost 90% since 1964 and again are approach- the DAC countries indicate that during 1964-67
ing a level of 50% of the total. these countries received an annual average of
The flow of private capital into the developing about $5.8 billion in income from their invest-
countries continues to be of major significance. ments in all developing countries. Of this amount,

47
roughly $500 million per year consisted of interest past few years, about four-fifths of the total net
on official loans outstanding, and an estimated flow recorded has come from France, Germany,
$700-900 million of interest on short- and me- Italy, Japan, and the United Kingdom.
dium-term private debt. The remaining gross re- As the staff of the IMF pointed out in a major
ceipts of about $4.5 billion per year represent study on the subject published earlier this year,3
primarily income on direct investment. Of this a number of factors underlie this steady expan-
amount, an annual average of $800 million was sion of commercial credits extended to the devel-
reported as reinvested, leaving a net level of re- oping countries. Among the more important have
patriated direct investment income of roughly $3.7 been the increasing competition for export mar-.
billion per year on average. During this same kets among the industrialized countries, the grow-
1964-67 period, new inflows of direct investment ing volume of world trade itself, the growing
averaged less than $1.3 billion a year. demand for capital goods in the developing coun-.
The flow of investment into the developing tries (coupled with limited access to international
countries and the reverse flow of investment in- capital markets and the limited supply of untied
come do not, of course, tell the entire story. Of development assistance),and the liberalization of
the roughly $30 billion cumulative investment in exchange, credit, and credit insurance policies in
the developing countries at the end of 1966, a the DAC countries. There is less understanding,
total of about $14.5 billion was in petroleum and however, of the role of private export credits
mining, traditionally among the more attractive in development finance. On one hand there is
sectors for foreign investors. Although available general agreement that under appropriate circum-
information is not conclusive, it is probable that stances, such credits constitute a significant addi-
a substantial share of the output of the foreign- tion to the financial resources available to the
owned investment in these sectors in most devel- developing countries. On the other hand, resort
oping countries is exported directly or indirectly to this type of financing can become excessive,
to industrialized areas-Western Europe, North and lead a developing country into an untenable
America and Japan. It is, therefore, of some in- debt situation.
terest to note that in the same year, 1966, exports Although the flow of private capital to the
from developing countries of only four major ex- developing countries has been of growing impor-
tractive commodities-petroleum, iron ore, baux- tance, international attention has traditionally fo-
ite and copper-amounted to more than $13.8 cussed on the financial resources made available
billion. The effects of import substitution, transfer through official channels. Throughout the past two
of technology, employment creation and tax gen- decades the flow of official capital has repre-
eration derived from the growing flow of direct sented a larger and more predictable share of
investment have resulted in additional benefits for total volume: moreover, the terms and condi-
the developing countries. tions under which it is extended are more directly
Trends in the other two major types of private subject to the development assistance policies of
capital flows are more difficult to assess.In 1969, the donor countries and international develop-
private portfolio investment in both developing ment institutions.
countries and multilateral development institu- Net official flows from all DAC countries have
tions increased again, from a peak of more than increased by an average of about 4% a year since
$1.5 billion in 1968.1 Surprisingly, this increase 1964 (the basic data are shown in Annex Table
took place in the face of the rapid increase 4). This rate of increase has been less than the
in the cost of borrowing during the past few rate of growth at current prices of the combined
years. Meanwhile, in spite of growing awareness GNP of these countries during the period, so that -
of the potential debt problems of the developing net official flows as a share of GNP have fallen
areas, the third type of private flow, that of export from 0.49% in 1964 to an estimated 0.39% in
credits, has continued to expand. From a level of 1969. The significance of this apparently rather
about $500 million per year in 1956-57, the flow small decline in the ratio of these flows to DAC
of total net export credits from DAC countries to countries' GNP becomes more clear when placed
developing countries tripled to almost $1.6 billion in the perspective of absolute amounts. Had the
in 1968, and increased further in 1969.2 For the level of 0.49% been maintained throughout the
period, almost $3.9 billion would have been
'This figure represents net disbursements during the year
and should not be confused with the figure of $2 billion export credits reter primarilv to net changes in export
shown in Annex Table -11. The latter constitutes the credit guarantees outstanding, rather than to disbursed
gross value of new issues floated during the year; it was, credits in the conventional sense.
however, also a peak level for the period for which data "'The Use of Commercial Credits by Developing Countries
are available. for Financing Imports of Capital Goods", in "IMF staff
'Unlike other data reported in DAC statistics, noetflows of Papers, Vol. XVII No. 1, March 1970".

48
 added to net official flows between 1964 and Considering these recent developments in the
1970, including $1.8 billion in 1969 alone. volume, composition and terms of the flow of
The bulk of the net official flow is made up of financial resources to the developing countries,
official development assistance, defined by the the immediate outlook for global development
DAC as financing intended primarily to promote finance is not altogether clear. As a natural con-
the economic development and welfare of devel- comitant to the economic development and
oping countries, with terms which are intended growth in trade of the developing countries, for-
to be concessionary in character. (Most of the eign direct investment and accessto private export
.remainder consists of government-financed ex- financing have continued to grow rapidly. Al-
ports and transactions in the securities of inter- though external financing at concessionary terms
national institutions at commercial terms.) As from official sources, both bilateral and multi-
indicated in Annex Table 4, flows of official de- lateral, has been rising in absolute terms, its rate
velopment assistance have also declined in rela- of growth has been slower than the economic ex-
tion to the GNP of DAC countries-somewhat pansion of the major capital exporting countries.
more, even, than total net official flows. In addition, the grant element of total official
Grants and grant-like contributions make up by commitments has shown no pronounced tendency
far the largest share of total official flows. From to increase. At present, there is little to indicate
1956 through the early 1960s, they were rarely that these trends are likely to be altered in the
less (and often considerably more) than three- immediate future.
fourths of total official flows each year. More
recently, however, grants have been declining
steadily as a share of official flows until, in 1968, External Debt of
they constituted somewhat more than 50% of the the Developing Countries
total. The single largest factor contributing to this
decline has been the progressive reduction of The Articles of Agreement of the World Bank
loans repayable in local currencies (which are stipulate that in making or guaranteeing a loan,
classified as grant-like flows) extended by the the Bank shall pay due regard to the prospects that
United States; these transactions are due to be the borrower (or guarantor) will be in a position
entirely discontinued by the end of 1971. Bilateral to meet its obligations under the loan. From the
grants declined further in 1969, but contributions very beginning of the Bank's lending operations,
to multilateral agencies rose sharply, bringing the prospective borrowers have been required to pro-
share of grants and grant-like flows in the total net vide the Bank wvithreasonably complete informa-
flow back to about the level of 1964-66. tion on, among other things, their external debt
While the fiow of grants has thus been irregular, situation. In order to facilitate the regular provi-
the volume of official loans-the other compo- sion of this information, the Bank has, over the
nent of total official flows-has generally risen not years, developed a relatively simple but effective
only in relative terms but in absolute amounts as reporting and processing system for external debt
well. The terms of this lending are shown in the and capital movements.' As the analytical de-
indicators for commitments shown in Annex mands and capabilities of the Bank have increased,
Table 4. In spite of efforts by most DAC countries, the reporting and processing requirements asso-
there has been little significant improvement in ciated with the svstem have grown apace. While
the terms of new loan commitments, taken as a considerable progress has been made, the exten-
whole. Although there have been year-to-year sion of data collection to cover systematically all
.fluctuations in the average maturity, grace period
and interestrate of official loans,the concession- 'The Bank's debt data system is based essentially on three
aryelementof total official loancommitmentshas separate sources of information: a series on reports re-
ceived periodically iron, Bank members on their external
.varied within a fairly narrow range around 50 %/n. borrowing; a series of similar reports on the lending of
The combined effect of these various indicators major crecirtor countries unrdera reporting system oper-
is perhaps best expressedin the grant element ated jointly with the OECD's DevelopmentAssistance
Committee; and a series oi statistecs on international capi-
data for total official commitments, loans and tal markets maintained by the Bankin cooperation with
grants combined. After remaining fairly stable the OECD'sad hoc Groupoli Financial Statisticians. The
the the
mi-i 960,
oncessonary lement debt statistics includled in this Report cover only, public
during the mid-1960s,the concessionaryelement or publicly guaranteed
clebt with anoriginal or extended
of such commitments, including grants, slipped maturity of more than one year. They do not include data
from about 80% in 1964-1966to about 75% in on non-guaranteed debt of private borrowersor any
Theaparentrecovry
inthe gant eement short-term dlebt, defined as debt with a maturity of, one
1968.The apparentrecoveryin the grantelement year or less.As noted in Part I of this Report,the Bank's
indicated for 1969 is, again, a result of the in- statistical reporting system is being revised; one element
creasedlevel of contributions to the multilateral oi this revisionis an expansionof coverage to include
data on non-guaranteed private debt, a significant factor
institutions. in the external accounts of many countries.

49
 relevant debt and capital flow information will years in the global debt picture correspond fairly
require a continued effort. closely to what might have been expected. Eco-
Total external public debt of developing coun- nomic development requires investment in capital
tries outstanding at the end of 1968 amounted to goods and human resources; as with many of the
about $53.4 billion, of which roughly three-fourths industrialized countries during earlier periods in
had been disbursed (see Annex Table 5).1 This their history, much of the demand for financial
represented an increase of more than $5.4 billion resources in the developing countries today is
over the level of $47.9 billion at the end of 1967, being met from external sources. Until at least
and continued the constant upward trend ob- some of the more advanced developing countries.
served ever since data of this sort first became reach the stage of development at which they
available about 15 years ago. For the past ten themselves become net capital exporters, external
years, total external public debt outstanding has debt, along with the associated debt service, is.
grown at an average compound rate of almost likely to continue to increase. Whether debt and
15% a year. This rate of increase has doubled the debt service can continue to increase as rapidly
total debt outstanding every five years since 1955. as during the past decade, particularly in those
Preliminary estimates indicate that an additional countries which already have relatively large ex-
$6 billion of external public debt was contracted ternal obligations, will depend in large part on
by the developing countries last year. This would the implementation of policies to manage this
have raised the total to almost $60 billion by the growing debt burden in an orderly fashion and
end of 1969, roughly twice the amount outstand- on their general economic performance.
ing at the end of 1964. Annex Table 5 also presents figures for debt
Total debt service, including both amortization outstanding and debt service by major regions. It
of principal and payments of interest, has been must be emphasized that any conclusions which
growing almost as rapidly as debt outstanding. In might be drawn from the regional variations which
1968, total debt service rose to almost $4.7 billion, appear in these figures would have to be based on
an increase of more than 12% over the 1967 level a thorough appraisal of the many factors which
of nearly $4.2 billion. Over the past decade, the underlie them. Explanations of such differences do
rate of growth of both debt outstanding and debt not derive solely from the financial arithmetic of
service payments has been about twice the rate the volume and terms of lending. The various re-
of growth of export earnings of the developing gions covered differ widely in stage and level
countries, and almost three times that of their of economic development and industrialization,
combined gross domestic product. in relative attractiveness for external investment,
It is worth emphasizing that aggregate data such in economic efficiency, etc. A thorough and satis-
as these mask a wide range of debt situations in factory explanation of regional variations in levels
individual developing countries, including differ- of debt and debt service would have to take all
ing relationships between long- and short-term these factors into account, both for meaningful
indebtedness, and variations in debt servicing ca- comparisons between regions and for compari-
pacity (see below, page 52). In most countries in sons of the very heterogeneous country situations
recent years external debt has been held to man- within regions. The discussion which follows does
ageable proportions, although in a few there have not attempt to provide the basis for such a sys-
been problems. In its analysis of member coun- tematic analysis, but only to document the facts
tries' economic prospects and creditworthiness of the regional incidence of present debt, and the
the Bank considers each country's situation on an service to which it will give rise.
individual basis, within the context of its domestic The data shown in Annex Table 5 indicate
and international economic activity. Nevertheless, the trends which have been emerging since the
aggregate data, when considered together with early 1960s. Both debt outstanding and debt serv-
global trends in economic growth, export earn- ice of the Western Hemisphere countries have
ings, capital movements and aid terms, provide a doubled since 1960. The region continues to ac-
useful frame of reference for consideration of debt count for by far the largest share of debt outstand-
problems and debt management policies. In a ing, more than 31% of the global total. Debt pay-
general sense, developments over the past few ments of this region in 1968 made up an even
larger share of the year's total-almost one-half.
The countries of South Asia, chiefly India and Paki-
tistic in ths Report repsresnciudd in the total debt sta stan, accounted for almost 23% of total debt out-
commitments with specified repayment terms, under standing at the end of 1968, but for only about
which, for the most part, disbursements have already 12% of total debt service during the year. The
begun. Undisbursed amounts outstanding under frame
agreements, earmarking arrangements and other less firm debt outstanding of these countries has more than
types of commitment, are excluded. tripled since 1960, but debt service paymentsin
50
1968 were just over twice the level at the begin- 16% higher in 1980 than in 1968. Similarly, the
ning of the decade. debt service schedules for East Asia show that
Debt service by region is given in Annex Table even after eleven years, service payments on exist-
10 broken down by principal type of creditor ing official debt will be higher than at the begin-
from 1965 to 1968, showing future payments due ning of the projection period for the countries of
up to 1980 on debt outstanding as of December that region.
31, 1968. In this Table, debt service for export fi- In 1968, slightly over half of total public or pub-
nancing consists of payments on suppliers' credits licly guaranteed debt service of the developing
-and loans from private banks and other financial countries was paid to private creditors, although
institutions. Payments to other private creditors only about one-fourth of total debt outstanding
cover primarily debt service on bonds and on originated from private sources. By 1980, service
funded debt arising from the nationalization of to private creditors on existing debt will have
private property. The official categories are self- diminished, as would be expected; it will repre-
explanatory. In the Western Hemisphere, service sent only about 15% of the total due in that year.
payments on privately held debt outstanding as of Service on debt outstanding at the end of 1968
December 31, 1968, drop off rapidly during to governments and international lending insti-
the next few years; by 1980 they will have de- tutions, however, will have declined by only
clined to less than 10% of their 1968 level. Debt about 20%.
service payments to official creditors at the end Not surprisingly, the outstanding debt of the de-
of the period will, by contrast, remain at 60% of veloping areas is concentrated in relatively few
their 1968 level. In South Asia, while service on countries. Nineteen of the 81 countries included in
privately held debt outstanding at the end of
1968 almost vanishes by 1980, payments to official
creditors will then be higher than they were in India Agriculture. Ploughing a rice field with an
oxen-drawnplough nearJamalpurin West Bihar.An
1968.Paymentsto governmentson existing debt IDA credit assistedthe improveinentand extension
will continue to rise after 1968 for seven years, of theSone irrigation system in this area, making
only beginning to diminish in 1976and remaining possiblethe irrigation of nearly d million acresannually.

5,, 4
Annex Table 5 accounted for three-fourths of short-term debt, but it also results in a net addition
the amount outstanding at the end of 1968. Half to long-term debt outstanding if the terms of the
of the total debt was located in only eight coun- commitment provide for an extended repayment
tries (which also account for just over half of the period of more than one year.
total GNP of the developing countries). Details The capacity to service debt is a function of a
of debt outstanding by type for these and other country's overall economic situation and strategy,
countries included in the total are shown in An- including its international trading and financial
nex Table 6. position. Inter alia, debt servicing capacity de-
Since 1960, eight developing countries have pends on a country's ability to generate savings,
negotiated 15 multilateral debt relief operations to pursue sound fiscal and monetary policies, and
involving the consolidation and rescheduling of to earn foreign exchange through exports of goods
just over $3 billion in disbursed and outstanding and services to meet its import requirements as
debt. Until 1965 multilateral debt rearrangements well as to satisfy its external financial obligations
were concerned almost exclusively with private and maintain adequate levels of reserves. The
suppliers' credits, and in almost every case since World Bank's regular country analyses normally
1956 commercial credits have figured importantly. take into account a wide range of such factors, in
In the mid-1960s it became necessary to under- addition to external public debt. One commonly
take rescheduling operations involving official as used indicator in the Bank's country analyses,
well as private debt. which is derived in part from statistics produced
In April of this year, an agreement was reached by its debt data system, is the debt service ratio.
with Indonesia by a number of donor countries As just noted, this indicator cannot substitute for
to provide major, long-term debt relief. It was the comprehensive analysis of a country's econ-
agreed to reschedule payments on almost $900 omy needed to provide a judgment on debt carry-
million of Indonesia's external debt outstanding ing capacity, but it frequently constitutes a starting
on July 1, 1966. The principal will be repaid in point in considering trends in this capacity. Al-
equal installments over a 30-year period begin- though the definition of the ratio is sometimes
ning in 1970. No new moratorium interest will be varied to meet specific analytical requirements,
paid on the rearranged payments of principal, and the most common concept is that used in Annex
interest on the rescheduled debt will not be Table 7: the ratio of total public debt service
paid until the second half of the repayment pe- payments to earnings from exports of goods and
riod. Further flexibility was introduced into the non-factor services. The relative burden of exter-
agreement under a provision for additional relief nal public debt service is indicated in the very high
through an option to defer part of the principal or rapidly growing ratios of some developing
1
repayments due during the first eight years. Pro- countries, particularly Argentina, Brazil, Ceylon,
vision was also made for a limited review of these Chile, Mexico, Pakistan, Peru and Tunisia. In
arrangements any time after 1980 in the light of some cases, the debt service ratio has increased
Indonesia's economic situation at that time. This even though export earnings have grown rapidly
agreement will improve Indonesia's present ex- over the past few years: the export earnings of
ternal debt structure, facilitating orderly planning Mexico and Peru increased by an average of more
for her economic recovery and long-range growth. than 8% a year from 1965 to 1968, and those of
Nevertheless, the agreement is unique to Indo- Chile and Tunisia by about 10% on average. The
nesia and cannot be considered as a precedent for ratios of Ghana and India, on the other hand,
general application. Indonesia's economy was have shown temporary reductions during the past
prostrate after a lengthy period of grave political two or three years, largely as a result of recent
and economic difficulty, and drastic measures debt relief operations rather than improvements
were required to support the process of rehabili- in exports: Ghana's earnings from exports of goods
tation-which, once undertaken with determina- and services were less in 1968 than in 1965, while
tion, could be expected to bear valuable fruit. India's increased at an average rate of less than
Formal multilateral debt relief arrangements are 3% a year during the period. The relatively fa-
not, of course, the only way to deal with these vorable ratios for Indonesia are the result of a
problems. Other kinds of agreement have been combination of the effects of past debt relief, tem-
made bilaterally with a number of debtors. These porarily reduced external borrowing and rapidly
arrangements have included rescheduling or re- increasing exports.
financing of debt service owed to both official In considering these and the many other ele-
and officially guaranteed private creditors. In re- ments of a member country's domestic and
cent years, some arrangementshave also been 'The data for Brazil include a substantial amount of private
made to consolidateor refinanceshort-term debt debt, and are not fully comparable with those for other
and commercial arrears. This amounts to relief for countries.

52
 external economic situation, the World Bank is ing domestic savings; such savings are essential
utilizing to an increasing extent quantitative ana- for sustaining a high level of investment and maxi-
lytical techniques and models. Various debt pro- mizing the contribution of foreign capital to the
jections have been constructed with the help of large inputs of resources that a modern economy
the Bank's debt data base and computer routines requires.
for purposes of internal analysis. Adequate inter- There are two fundamental processesof savings
pretation of projections such as these would be mobilization-through fiscal policy by budgetary
beyond the scope of this Report. Although it has surpluses, and through concentration of private
.long been accepted as a general proposition, this savings in financial institutions. Particular attention
work confirms the crucial role of the composition has been paid to resource mobilization through
and terms of capital flows to the developing coun- the fiscal system, but there is increasing aware-
.tries. Moreover, the analysis provides a measure ness that the development of financial institutions
of the magnitude of the international effort which to attract savings may represent an even more sig-
would be needed simply to maintain the present nificant aspect of total resource mobilization in
level of net resource transfer to the developing the developing countries as it is in the developed.
countries, much less to increase it as their trade The fiscal process has been and will remain a most
and investment requirements grow over the next important source of funds, particularly for the fi-
decade. In addition, it suggeststhat the debt serv- nancing of public investment. Nevertheless, it is
ice problems facing a number of developing coun- subject to limitations stemming from competing
tries are likely to grow more difficult during the demands for public needs and the time lag be-
next few years if recent trends in capital flows, aid tween initiation and implementation of budgetary
policies and development performance remain plans. A well organized financial system can rec-
unchanged. Globally, both the gross domestic oncile what savers expect in terms of liquidity
product and export earnings of the developing and return and what investing enterprises require
countries have continued to expand. External debt in terms of amount and cost of money. As such
and debt service requirements have increased it can introduce greater flexibility into the resource
more rapidly, however, while during the past few mobilization process, particularly for private in-
years the net flow of external capital has tended vestment, and is capable of playing a significant
to level off and the terms at which it is obtained role in many developing countries.
to become somewhat harder. Several developing
countries, including some of the largest, have felt
it necessaryto seekpartial relief from existingdebt SavingsFormationby FiscalPolicy
service obligations in recent years. It is clear, Both national governments and the World Bank
therefore, that the debt situation of the develop- have emphasized improved taxation as the main
ing countries will continue to require the careful method of domestic resource mobilization for
attention of the international financial community. economic development. The average tax ratio for
most developing countries for which figures are
available appears to have increased to about 16%
Prospects for Domestic Financing of of national income in recentyears (seetext table
on page 54). In several countries (e.g., Brazil,
Economic Development Chile, the Republicof China,Israeland Mauritius)
yields from taxes, expressed as a percentage of
The mobilization of domestic resources in de- GNP, are close to, and in some cases as high as,
*veloping countries is acquiring new and decisive those of developed countries. Furthermore even
importance, in view of the rising capacity of their low-taxed countries not separately shown in the
economies to use capital effectively. Locally mo- tables have in most cases experienced marked
*bilized funds finance by far the main proportion upward movements in their tax ratios.
of the costs of economic development projects; In another large sample of developing countries
external finance, while forming an essential com- (see text table, page 55), a majority increased the
plement to such local funds, depends very signifi- ratio of tax revenues to GNP during the mid-
cantly for its effectiveness on the availability of 1960s. As shown in this table, rising levels of taxa-
local financial resources in sufficient amounts and tion in many developing countries have not raised
appropriate forms. Resource planning has received national savings as much and in as many countries
wide attention over the past decade, but inflation as could be expected, given the emphasis attached
has had disturbing effects on resource allocation to fiscal policy for such purposes.
and on the balance of payments, ultimately ham- The willingness and ability of governments to
pering economic development. Inflation reflects pursue firm fiscal policies, on which successful re-
inter alia inadequacies in mechanisms for mobiliz- source mobilization through the tax system largely

53
Ratioof Tax Revenueto NationalIncome assessment and collection would undoubtedly
SelectedDevelopingCountries reduce the gap which exists in many countries
SimpleAverage between a formal tax structure with high and
1950-59 1965-67
Developing Countries ............. 14.9 15.8 progressive rates, and a low revenue yield from
Asiaa 1 these
1............................taxes.
Ceylon.. 19.2 204 Governments generally seek to recoup by taxa-
China
....................... 19.7 17.9 tion some part of the cost of development, par-
Burma....................... 16.1 16.1 ticularly from those groups which have benefited
India................................ 8.2 14.1 most from it. Economic development helps to cre-,
Philippines
.... .. ..... ..........8 112.6 ate new wealth in the hands of particular indi-
Korea ... 8.0 ........11.1

Africab ... 13.1 15.8 viduals. Reforms of personal and indirect taxation
Mauritius........ 15.5 22.9 are needed to ensure that such individuals con-
Southern
Rhodesia ...................... 14.5 15.4 tribute to public needs on a broader and rising
... .........
Ghana 12.3 14.4 basis. Linked to this and to other objectives of
Kenya
.. . ...................... 13.4 13.6 fiscal policy is the need to ensure that the systems
Latin America and Carribeanc .15.8 17.6 of direct and indirect tax administration reinforce
Brazil .. .. 23.8 34.6 each other in maximizing revenues.
Uruguay .28.4 31.0 Another important potential source of increased
Chile.......... .. .. ............... 20.3 28.0
Guyana .. . ........... 20.9 23.8 tax yields is the agricultural sector. The introduc-
Jamaica ................ 14.4 20.1 tion of technological changes in farming, com-
Ecuador ... .......................... 16.7 19.1 bined with improved domestic terms of trade for
.............
Peru 13.9 18.8 agricultural products in many developing coun-
CentralAmerican Common Market . 12.1 13.4 tries, have sharply improved opportunities for
Europed.14.3 17.0 higher farm incomes in certain portions of the
Greece.. 21.5 26.3 agricultural sector, which consequently both can

M paiddle
Easte 22.8 19.3 and should bear a larger share of the tax burden.
Israel... 25.5 346 Agricultural taxation is often complicated, how-
Iraq.... 327 268 ever, by contrasting policies: on the one hand
Jordan....... ......................... 20.2 12.0 exemptions or lower income tax rates may be ap-
plied to farm income, while on the other hand
The tableaboverefersto 79 developingcountries.
Thecountries covered
in suchbenefitsmay be offset by other factorswhich
the areatotalsareasfellows: sc eeismyb fstb te atr hc
South Asia-Afghanistan, Burma,Ceylon,India, Iran,Nepal,Pakistan. tend to reduce farm earnings; in some cases
fast Asia and Pacific-Cambodia,China(Republic of), Indonesia,
Korea these include regulated low domestic prices and
(Republicof), Laos,Malaysia,PapuaandNewGuinea, Philippines,
Singa-
pore,Thailand, Viet-Nam(Republic
of). overvalued exchange rates for agricultural exports,
bNSorthAfrica-Algeria,
Libya,Malta,Morocco,Tunisia. which reduce overseas sales of farm products.
EastAfrica-Botswana,
Burundi,
Congo (DemocraticRepublic
of),Ethiopia, Tax concessions are not unique to agriculture;
Kenya,
Lesotho,
MalagasyRepublic,
Malawi,
Mauritius,SouthernRhodesia,
Somalia,
Sudan,Tanzania,
Uganda,Zambia. they form only a part of more general schemes of
Dahomey,
WestAfrica-Chad, Gabon, Ghana,Ivory
Coast,Nigeria,Senegal, tax concessions, some to individuals, mostly to
SierraLeone,Togo.
cSouthAmerica-Argentina,
Bolivia,Brazil,Chile,Colombia,
Ecuador, business. Such concessions represent dilutions of
Guyana, Panama,Paraguay,Peru,Uruguay,Venezuela. a fiscal system's potential to raise revenue for pub-
CeftralAmericaandCarihhean-Barbados,CentralAmerican
CommonMar- lic needs: even when justified, their effect in erod-
ket(CostaRica,El Salvador,
Guatemala,
Honduras, Nicaragua),
Dominican
Republic,
Jamaica, Mexico,
Trinidad
andTobago. ing the tax base should be clearly recognized and
dEurope-Cyprus,
Greece,Spain,Turkey. the loss in revenue calculated and taken into ac-
eMiddle
fast-Iraq, Israel,Jordan,Lebanon,
Syria,UnitedArabRepublic. count by the authorities. Another problem lies in-
Source:IBRD WorldTablesfor all individual listedaboveandfor
countries policies designed to hold down charges on public
area totals,
which includeothercountriesnotshownabove. services (railroads, power, water, etc.). Such poli-
cies act as disguised or concealed subsidies to-
depends, is subject to various political and eco- users; when not properly covered by charges en-
nomic constraints. A high degree of political tered in the budget, they reduce the resources that
leadership and of social unity are necessary if in- should become available to such utilities from
creases in taxation are to be legislated for and their own earnings.
executed. In economic terms, taxable capacity is The growth of government expenditures has
constrained by such factors as the level of per been an important aspect of the budgetary picture
capita income and the degree of governmental in most developing countries. Part of this increase
direction of an economy, which set limits to the can be regarded as arising out of the process of
ability of governments both to improve tax as- economic growth itself. It makes little sense to
sessments and to implement effective collection build up additional productive capacity while fail-
procedures. Improvements in the machinery of ing to provide the resources needed for proper

54
 of SelectedDeveloping
Classification ing programs in the light of high and rising needs
inTax
dinagtChavnges
and Nc
Revenues for such expenditure. The solution to this problem
to average1965-68)
isaverage1963-65
takeninmostinstances
(period does not lie in the reduction of the quantity of tax
Changesin savings
as Increasein Decrease
in receipts but in an improvement in the quality of
proportionofGNP TaxRevenue TaxRevenue expenditure. For example, there could be scope
Numberof Countries under special circumstances for earmarking a
Savings..PublicanPri
. . loa greater share of revenue increases for develop-
Increase in PublicSavingswith ment objectives which provide new benefits to
Decrease in PrivateSavings..... job 2c individuals and to the community.
Stabilityin PublicSavings with
Savings ..
inPrivate
Decrease 2d _ SavingsMobilization by FinancialInstitutions
in PublicSavings
Decrease with
Increase .....
in PrivateSavings . l...
lie 9f A financial system can complement the fiscal
in PublicandPrivate
Decrease mechanism and the sustained inflow of foreign
Savings . .......... 4g lh capital in assuring an orderly process of economic
Total 37 12 development. The function of the financial system
PublicSavings is to link savings, particularly those deriving from
Increase in PublicSavings
......... 20 2 the growth of modern sectors of the economy,
Stabilityin PublicSavings . . 2 - with the investment needs of business enterprises.
Decrease .........
in PublicSavings 15 10 The efficiency of a financial system may be best
Total 37 12 judged from three interrelated points of view: its
Private Savings
Increase
in PrivateSavings........ 21 9 ability to attract and mobilize domestic savings,
Decrease ... ....
in PrivateSavings 16 3 its adequacy in channeling funds towards produc-
Total 37 12 tive uses, and its function as intermediary and
guarantor for the inflow and investment of foreign
The tableabovecoveis49 developing countries.
References areas follows: capital.
China(Republic
a Bolivia,Central AfricanRepublic, of), Cyprus,Jamaica, thol
Kenya,Korea(Republic of),Panama,Paraguay,Turkey. The development of a fiancial system Involves
bArgentina,Brazil,Chile,Guyana,Honduras,Iran, Mauritania,Morocco, the adaptation of existing financial institutions,
Uganda, Zambia.
cUnited ArabRepublic, Uruguay. and the introduction of new instruments designed
d Ecuador,Malagasy Republic. to broaden and strengthen institutions' inter-
eBotswana, Cameroon, CostaRica,Greece,Guatemala, Malaysia,Peru, mediary functions, in accordance with specific
Singapore,Tanzania, Tunisia.
Thailand, countries' social structures and the level of their
Senegal,
Ghana,Iraq, Israel,Mauritius,Mexico,Philippines,
i El Salvador,
TrinidadandTobago. agricultural, industrial and infrastructural devel-
gAlgeria,Ethiopia, Spain,Venezuela. opment. A financial system can best attract con-
hNicaragua. fidence and savings when broadly based on well
Source:IBROWorldTables. recognized institutions, when its practices are
clearly understood, and when changes take place
in response to emerging needs. Neither a financial
system whose institutional mechanisms lag behind
maintenance and full utilization of existing fa- the public and private financing needs of the
cilities. In addition, however, governments have economy, nor one involving the introduction of
frequently taken on expenditure commitments un- new and complex institutions which find an inade-
related to the needs of economic development. quate response in the existing level of financing
This growth of non-development current ex- requirements, can be realistically integrated with
penditure is a worrying aspect of the overall fiscal or support economic development.
problem of developing countries. This worry finds The contribution of financial intermediaries
expression in almost every country economic re- consists not only in bringing together savings in
port of the World Bank. For many countries, in- amounts and forms appropriate to needs, but also,
creases in such current expenditures require a and more significantly, in accustoming savers to
much more rapid growth of tax revenues; this may shift from deposit to security types of assets. Cer-
be difficult to achieve, particularly if GNP is grow- tain non-banking institutions, such as cooperatives
ing more slowly than predicted at the time the and savings institutions, form natural extensions
recurrent expenditure obligations were entered of deposit banking; others, such as mortgage and
into. finance companies, may help to introduce savers
There is a growing awareness of the possibility and investors to the use of marketable instru-
that the growth of non-development expenditure ments. These institutions are characteristic of the
has been stimulated by the growth of revenue process through which some developing countries
itself. Furthermore, it is frequentlydifficult for gov- have already passed, and others are passing now.
ernments to reject proposals for additional spend- In some, the economy has progressed far enough

55
 and financial institutions have grown and diversi- variety of facilities.The penetrationof commercial
fied to a point where investment requirements banksinto the economy differswidely from coun-
may begin to be financedthrough salesof securi- try to country. Their share in the collection and
ties to the public. The maintenanceof monetary provisionof funds is relativelylargerin developing
order is essential for sustained progressin this countries than in the developed world, owing to
sphere,asshownby the experienceof manycoun- the absenceor inadequatedevelopment of spe-
tries where it has been hamperedor delayed by cialized financial institutions,suchas exist in more
inflation. advancedcountries. A great change has been in
Rigiditiesin supervision,and in regulationsin- progress,however, over the pastdecade; a num-
troducedby governmentsin order to direct credit ber of developing countries (such as Argentina,
and hold down the cost of money, can impede Brazil,India, Israel,Mexico and someothers)have
progresstoward institutional structuresresponsive attained nearly as diversified financial systemsas.
to social and economic change. Undoubtedly, exist in more developed countries, offering to
banking supervision and credit regulations are saversalternativetypes of assets(in maturity, risk
necessaryinstrumentsof public and financial poli- and return) and providing varioustypesof financ-
cies, but their exerciseby the authorities should ing related to the diverse and changingneedsof
not be carried to the point of impinging on the their economies.
flexibility of the financial mechanism.In many A variety of patternshasemergedin this evolu-
countries, the rigidity of governmentregulations tion, with special characteristicsin certain areas.
hasstifled innovation within the institutional sys- For instance,mortgagefinancingfor homeowner-
tem and stimulated the growth of "parallel" or ship has proved most popular in Latin America,
extra-bankingmarkets, in which transactionsare with specializedinstitutionsand instrumentsfacili-
taking placeoutside official surveillance,at higher tating a larger flow of saving for this purpose.
interest rates, on more onerous terms and for Everywhereagriculturalfinancing hasinvolved of-
purposes other than those envisaged by the ficial agenciesor specialfunds, but the experience
authorities. of certain countries in Latin America and Asia
It hasbeen a widespreadpracticeto keep inter- points to the important role that commercial
est rates low by legislation, regulation or market banks and cooperative-typeinstitutions can play
intervention-and to enforce such ratesby direct in opening traditionally closed sectors to a
controls on internal and external transactions.It is "money economy" and mobilizing local savingfor
understandablethat governmentsshould wish to local financing. In some countries,like India and
keep interest ratesas low as possible, in view of Pakistan,the postal savings bank has provided
the damagingeffects of high borrowing costson widely diffused facilities through which money
economic development programs. Nevertheless, could be savedfrom and transferreddown to the
artificially low rates hinder savingsmobilization; hamlet level, and a reservoirof funds securedfor
also, by providing borrowers with uneconomic financing public needs.
and concealedsubsidies,they distort performance Financecompanieshavealso becomevery pop-
criteriaas to the efficiencyof investment,and con- ular, but there is no uniformity in their purposes
tribute to the mis-allocationof resources.Policies and functions. Privatecompanieshave tended to
to hold down interest rates at levels not much concentrateon the provision of consumerfinance
higher (or actually lower) than those prevailing in some countries (Argentina,Brazil,Nigeria), or
in the leading externalmoneyand capital markets on financing establishedbusinessin others (Co-
also stimulate damaging outflows of funds by -lombia, Israel, Mexico, Pakistan,Philippines); in
groups commandingsufficiently large amountsto addition, such institutions have occasionallypar-
justify their transferout of the country. All in all, ticipated in the provision of funds for new ven-
rigid controls and low interest rates have rarely tures, jointly with foreign capital and initiative.
been effective for the purpose or progressthey The World Bank Group has supported the for-
intended to achieve; indeed their effects have mation of market-orienteddevelopment finance
generally tended to produce precisely the situa- companiesin somethirty countries.Many of these
tion the authoritieshad intendedto avoid, namely, institutions are playing a significantrole in financ-
to createa scarcityof resources. ing industrialdevelopment,and somehave helped
Despite shortcomings,progresshasbeen made to build a local capital market.In some countries,
in a number of countries toward the develop- public institutionsare assignedthe taskof provid-
ment of financial systemsappropriate to the level ing vast capitaloutlays neededby new urban cen-
reachedby their economiesor by certain leading ters emerging in developing (aswell as in devel-
sectors. In practically all developing countries, oped) countries. Of particular importance in this
commercial banks constitute the nucleus of the respectare the variousformsof "contractual" sav-
financial system and are equipped to provide a ings institutions- ranging from the compulsory
56
 charges levied for social security to contractual Urbanization
arrangements, offered by insurance companies on
a collective or individual basis, assuring a flow of The Bank is finding itself increasinglyinvolved in
savings to common pools available for financing problems of urbanization, and is attempting to see
public works which result in social change. how it can respond to these problems. The special
There are no complete, comparable and syste- section which follows presents an outline of the
matic data as to the degree to which various de- Bank's preliminary thinking on this important
veloping countries have been able to advance the subject.
-formation of their financial systems, in terms of
their economic development and the diversifica- Introduction
tion of their financing requirements. For illustra- Historically, urbanization has been inseparably
stive purposes, a number of countries have been associated with the process of economic develop-
chosen, for which certain data could be assem- ment. The city, with its concentration of industry,
bled. Annex Table 3 indicates the relative im- commerce and administration, of capital, labor
portance reached by these countries' banking and and technology, has traditionally been a powerful
non-banking financial institutions in the course of generator of national economic growth. But the
the past decade; the table shows the percentage economic and social costs associated with urban-
of gross national product represented by currency, ization can be heavy. This was true of the cities
liabilities of commerical banks and non-banking of the currently developed world during their
institutions, and claims on the private sector. In a period of rapid urbanization; it is equally true of
number of these selected countries (Colombia, the cities of today's developing countries. Urban-
Costa Rica, Israel, Morocco, Tunisia) demand de- ization can hardly be stopped; the object of
posits have become more important than currency analysis must be to identify the costs it entails, and
in domestic transactions, reflecting the leading to devise policies to minimize these costs and to
role and acceptance of commercial banks as key promote more balanced urban growth. Then the
institutions in their financial systems. Moreover, power of the city as an engine of development can
abtainable data for some of these and other coun- be harnessed for the benefit of the economy of
tries (Republic of China, Honduras, India, Mexico, the country as a whole.
Pakistan, Peru, Philippines, United Arab Republic), The urban problem is not unique to the devel-
indicate that non-banking financial institutions are oping countries. In the more developed nations
complementing commercial banks in a significant a good deal of attention is paid to urban prob-
way. lems. Yet there is a fundamental difference. In the
The World Bank has a special interest in the developed nations the urban poor, the migrant
performance of developing countries' financial from the country and inhabitants of backward
systems in terms of the contribution they can regions form a relatively small part of generally
make to the productive combination of domestic affluent societies where population pressures are
and foreign capital. This is generally linked to the also far less. Further, immigration from the coun-
recognition that domestic institutions have be- tryside is frequently offset, at least in part, by
come able to mobilize domestic financial re- emigration from the city of the better-off-who
sources in appropriate forms and amounts. A leave behind an infrastructure of roads, power,
country's ability to mobilize domestic resources sanitation, school and transportation facilities.
and to participate in combined ventures with for- Accordingly, attention may be focused more in-
eign capital depends to a large extent on its poli- tensely on questions such as urban renewal, pol-
icies with respect to acceptance of foreign capital lution, congestion, housing and recreation. In the
and financial regulations. Along with financial developed world, therefore, the problem is more
policies, the development of skilful finance man- one of proper resource allocation and the creation
*agement is important in bringing capital and of appropriate social mechanisms to integrate
know-how together; its scarcity is often a major those still outside the main stream into the mod-
constraint on the expansion of investment, do- ern economic and social systems enjoyed by the
mestic or foreign. Finally, the development of a majority.
financial system able to mobilize an increasing In contrast, the developing countries are ex-
share of domestic savings, and to attract foreign periencing a very fast pace of urbanization, ac-
capital in amounts commensurate with its most companied by growing and pervasive social and
efficient use, also involves still broader factors: economic problems whose major symptoms are,
these include social and cultural changes which with some variations, evident throughout the de-
influence the general attitude of the population velopingworld. Urban populations are rising faster
toward saving and investing-what might be than new employment opportunities, thus causing
called, the "development climate" of the country. serious unemployment and underemployment.

57
Cities' financial inability to meet the sharply developing countries, there are a number of dis-
rising demand for social servicesand social over- cernible trends.
head investment,is leading to a deterioration in 1. The least developedcountries are also those
the quality of urban life for a substantialpart of with the lowest percentageof their populations
their inhabitants;a large and growing proportion urbanized, and it is these countries which now
of the urban population is forced to live at the are experiencing the sharpest rise in population
margin of existencein slums and shanty towns. growth in generaland urban growth in particular.
Problemsassociatedwith the growth of cities, in- The prospectsare for still more acceleratedurban-
effective allocation of resourcesand lack of basic ization in this least urbanized and developed.
infrastructure retard industrialization and inhibit group of countries; by 1960, these countrieshad
the growth of employment and of the national only 13% of their populations in urban areas,com-
economy. Urban centers also lack adequate mech- pared with over 50% in the developed regions.
anisms for the cultural integration of new in- 2. Urban growth in the developing world is
habitants, and are unable to prepare them for concentrated to a striking extent in large cities
productive economic life. Consequently, the cities (those with populations of 500,000 and over). Be-
of important parts of the developing world are tween 1920 and 1960 big cities absorbed about
increasingly spawning a "culture of poverty" one-half of the urban growth in East Asia, about
which is more akin to rural peasant society than one-third in South Asia and Latin America and
it is to modern urban society. At the same time, about one-quarter in Africa. In 1920 only 13% of
in the developing countries as in the developed, the world's big cities were located in developing
city growth all too often occurs without adequate countries; by 1960, 37% of such cities were in the
consideration of the ecological and economic developing world. Both total and urban popula-
costs of environmental pollution. tion growth accelerated in the decade of the
Urbanization is an integral part of the economic 1950s, the last period for which census data are
and social transformation of the developing world. available; during that decade the rate of increase
This transformation is currently an unbalanced one of the urban population of the developing coun-
largely because of excesspopulation growth rates, tries, was over 50% higher than that of the previ-
and the imbalance may well become more pro- ous three decades. Projections for the period 1960
nounced for a time given current demographic to 2000 indicate that the urban population of the
trends, economic growth rates and constraints on developing regions may quadruple to over 1.4 bil-
resources. Nevertheless, the economic growth of lion people, while the rural and small town popu-
urban areas, where most modern industry is cen- lation of those areas may double in this period to
tered, determines to a very large extent that of the some 3.2 billion.
nation; and the problems involved in urbaniza- The past and projected growth of urban and
tion will therefore profoundly influence achieve- rural population is shown in the table below.
ment of national development objectives. It is
important that planning promote both the most
efficient use of space in cities, and the emergence
of a system of cities which responds adequately e
emergnc
to countries' changing economic needs-in turn P O=
enabling the mobilization of resources for subse-
quent orderly urban development. That this can
be done is evident from the examples of some ~a~ o
cities in the developing world which are, at least 7
in comparative terms, making progress in finding53 fl
social and economic solutions to the problems of
rapid urbanization. t4Wr&Pp9te £930 v6

Trends
Urbanization
Between 1920 and 1960 the world's population
rose by about 60% from 1.9 billion people to 3. Rates of urban growth will probably be high-
3.0 billion. In this period, the world's urban popu- est in Africa (at 4.5% annually) starting from a
lation (defined as groupings of 20,000 people and relatively low level of urbanization, followed by
over) rose from 270 million to 750 million, a rise Latin America, South Asia and EastAsia. The trend
of 185%. The rise in urban population in the de- towards concentration in large cities is expected
veloped countries (125%) was much less rapid to continue; the big cities of the developing world
than that in the developing world (350%). Within may have to accommodate an additional 100 mil-
the overall picture of rapid urbanization in the lion people in the decade of the 1970s alone.

58
Most major cities are growing at rates of from 5°h Ghana Electric Power. The Akosombo Dam and
to 8% annually, and can be expected to double povwerplant on the Volta River. This giant dam andl
their population in 10 to 15 years' time. power plant with a capacitvof 588,000 kilowatts and
an ultimate capacitv of 882,000 kilowvattsn.as built with
the ass;itance of a $47 million World Bank loan. The
Labor Force, Employment and largestuseror power frotn this plant is an aluminumn
Output Implications smelter at Tema cnnstructed at the same time as
the pJowerp)lant.
The urban labor forces of the developing re-
gions may rise five or sixfold by the turn of the
century. The prospects of absorbing these people proportion of underemployed urban workers will
in modern sector employment are not good. In have to find work in traditional service occupa-
the decade from 1955 to 1964, manufacturing out- tions. One element in policies to mitigate this
put in the developing world rose at an annual rate problem would be a concentrated effort to up-
of 7% and employment in this sector by only 4% grade the quality of "human capital" through
annually.Aboutone-fourth of the urban labor force job-oriented educational programs, which could
*in Asia and Africa, and about one-third in Latin facilitate the process of integrating unskilled urban
America, is in manufacturing and public utilities. labor forces into the urban economy. Moreover,
These proportions of workers in manufacturing it is essential that foreign trade and subsidy poli-
-and public utilities can probably be maintained up cies which make scarce capital artificially cheap
to the year 2000, given labor force projections and relative to labor be considered with respect to
recent output and productivity trends. But in order their impact on the urban employment problem.
to increase employment in these sectors sharply
and to prevent the continued growth of surplus Internal Migration
urban labor, a marked rise in manufacturing and Migration to urban centers, despite high levels
public sector investment and output would seem of underemployment, accounts for half or more
to be required. Government, commerce and re- of total urban growth. Whereas population growth
lated activities cannot be expected to grow much can be reasonably predicted from birth and mor-
more rapidly than public revenues and total trans- tality rates, migration is essentially a response to
actions. Accordingly, in the absence of new job incentives. Motivation for people to migrate is
opportunities, the prospect is that a larger based on some combination of perceived welfare

59
Kenya-Highways. Constructing a new road about 50 on the same amount of land-in one context leads
miles southeast of Nairobi. The World Bank has been to migration and "over-urbanization" in another.
supporting the development of the highway systems Thus high rates of population growth in many
in EastAfrica for the past 15 years. Bank loans have
also been used to improve the railway system and developing countries contribute greatly to the
expand and improve ports in the region, pressure on urban areas and to the demand for
resources for current consumption instead of for
growth. Successful family planning programs can
and economic incentives, and reflects a combina- lead to important short-term savings in resources
tion of rural push and urban pull factors. Though but will not provide any relief for about two dec-
conditions are not good in the towns, conditions ades to the general problem of the migration of
in rural areas in most developing countries are surplus labor to the cities, since those who will
probably still less satisfactory, especially for the enter the labor force over the next 15 years are
young and dynamic members of the population. already born. Thus, even if population growth
The facilities available in the cities-electricity, rates in the developing nations were to fall sharply,
transportation, water supply, education, shopping, their urban areas would continue to grow rapidly.
entertainment-are likely to compare favorably, As the lowest income areas of the world, including
however overburdened they may be, with those most of Asia and tropical Africa, have yet to reach-
in the countrysiden at the same time, the industries a 25% level of urbanization, a vast number of
located in or around cities will probably provide potential migrants are available to come to the
workers with higher rewards for their labor than cities and probably will.
the kinds of job available in rural areas or small
towns. Thus the decision to migrate to the cities Urbanization and EconomicDevelopment
is a rational one; furthermore, the costs to society Historically the city has grown in response to
do not appear to outweigh the benefits to the the need to manage resources and labor forces
individual. in societies which were able to produce surpluses
Migration is partly caused by excess population of goods. In the industrializing West the urban
growth in relation to economic growth. "Over- center itself became the center of economic activ-
ruralization"-more people trying to earn a living ity, as the important surpluses produced were

60
chiefly in the manufacturing and service sec- productive activities. In the longer run, however,
tors, rather than in agriculture. Industrialization its service sector may well be the chief determi-
changed the technical-organizational base of so- nant of the competitiveness of a city's output.
ciety. The functional specialization of activity went With the growth of a national economy, involving
hand-in-hand with the concentration of popula- demand for new products and specialization in
tion in particular places. But patterns of urban- production, an industrial complex may grow
ization differ depending on culture, historical which both trades with other areas and provides
circumstances and economic structure. Indeed, goods for the large market of the city itself. The
the urban responses of the developing countries large urban center can offer important economies
tend to differ sharply from the patterns experi- of scale for productive trade and industry, and
enced In the West. .
hesed
inthew patternsWofurbanresponse.are for public sector activities. It can also generate
, These new patterns of urban , response are so-called "external economies" in the form of
largely accounted for by differences between the inter-industry linkages, pools of skilled labor, fi-
socio-economic factors pertaining in nineteenth-
century Europe and America on the one hand, nance and research.
and in today's developing countries on the other. Urban concentration must achieve a certain
For example, health conditions are notably better 'critical mass" for external economies and internal
in the cities of today's developing world than they economies of scale to raise productivity and foster
were in the nineteenth-century West. Conse- further growth. At the same time, careful study is
quently, today's urbanizing countries face a higher needed to determine at what point the external
rate of natural population increase than did the diseconomies of city growth in the form of the
cities of the developed world during its period of costs of pollution, traffic congestion and ineffec-
intensive urbanization. At the same time, industry tive administration, for example, overwhelm the
forms a relatively smaller proportion of total eco- benefits provided by urban concentration and be-
nomic activity. Moreover, in the earliest phasesof gin to affect adversely the prospects for new in-
industrialization and technological development vestment and growth.
in the West, far more labor was needed per unit of
output than would be appropriate in the indus- The Region
trialized countries today, given the changes in the The city is not an isolated economic unit. A
relative costs of factors of production. Today's nation may be said to consist of a system of cities
developing countries, wishing to create industrial in which each performs functions for its surround-
sectors which can compete internationally, do not ing regions. Cities may also be regarded in a hier-
have to go through the process of recreating a archial framework with certain "primate" cities
modern industrial technology since they can draw (i.e. those which dominate a nation, or in some
on existing techniques developed in the West. On cases a region) performing functions for the entire
the other hand, in choosing to adopt this tech- economy; other cities may depend on the primate
nology, they may find it inappropriate to the rela- city in varying degrees. A number of writers have
tive costs of capital and labor in their societies. referred to a "trickling down" effect in which the
So far as labor is concerned, therefore, they may rapid growth of primate urban centers in the early
consequently face both an acute shortage of skills stages of development is replaced by more bal-
and a high overall level of urban underemploy- anced growth at later stages of development when
ment. in the nineteenth-century West a rapidly interior areas are opened and transport and edu-
growing industrial sector operating within the cation become more widely available. But concen-
-context of a comparatively slowly-growing labor tration in primate centers may inhibit subsequent
force was able to absorb the influx of largely balanced growth; the big city may exert such an
migrant workers; in effect, the pace of urban influence that it draws in capital, labor and en-
-growth was in better balance with the general trepreneurship in a continuous self-perpetuating
trend of the then urbanizing countries' economies process. Traditional rural areas may fail to respond
than it is in today's. Urban pull was the main fac- to the changing demand for agricultural products,
tor in the West's urbanization; by contrast, city or to adopt modern technology and inputs. The
growth in the developing countries must be con- integration of such areas into the nation's market
sidered in the light of a combination of urban economy may require substantial structural re-
pull and rural push factors. forms, in land tenure for example. Yet the process
of modernizing agriculture often reduces the need
The Urban Economy for labor and may stimulate migration to the cities.
The city may conceptually be viewed as a pro- Economic development policy for cities cannot,
ducer trading with the rest of the economy. The therefore, be based on a purely urban strategy,
service sector of the city supports its dynamic but must also consider the interaction between

61
urban and rural areas in making the most effective The critical limiting factor in the urban economy
use of resources. may well be management. Large cities provide the
bulk of modern sector jobs and incomes and a
Urbanization Issuesfor the 1970s good part of a nation's traditional service employ-
TheNation ment; effectiveness of the management function
may be a crucial determinant in the ability of a
National policy making and resource allocation society to achieve its development goals.
needs to take into account a new dimension in
thinking about urban growth. The cities are not FinancingUrban Growth
just absorbers of resources which must be rationed
if other national goals are to be financed; rather, Allocation
NationalResource
they are instruments of economic and social trans- In a number of countries effective regional and
formation of the whole nation. Choices must be urban development programs cannot be carrieds
made over a vvide range of priorities between in- out as long as insufficient consideration is given
vestment in commodity production and what may to the appropriate division of resources between
be termed settlement infrastructure and urban national and local authorities. The contribution of
services. In this respect the standards of urban the urban economies ought to be considered in
public services can best be set in relation to the the formulation and implementation of national
availability of resources and the need to achieve strategies of development. In some countries
urban growth and employment objectives. better coordination may be required between na-
A related issue concerns the problem of regional tional, regional and urban development authori-
imbalance, which frequently leads to policies de- ties. Allocations of resources which are made
signed to limit the size of big cities. Such policies mainly for distributional, political or welfare rea-
may achieve certain distributional goals in back- sons may not maximize growth in cases where
ward regions, but at the expense of overall na- this remains the fundamental aim of national eco-
tional growth, Of course, national policy must take nomic policy.
into account the longer run objectives of integrat-
ing the nation both socially and economically. But ResourceMobilization at the Local Level
a national development strategy should consider Most urban administrations lack sufficient funds
selecting regions \vhere concentrated activity and for capital requirements, and even current reve-
investment can have a decisive impact on the nues to maintain existing services. It can be shown
economic development of a wide area. The selec- that the management effectiveness of comparable
tion of critical growth regions will depend largely cities in a given economy varies with the efficiency
on the opportunities for industrial growth and, in of local resource mobilization through tax systems,
some cases,prospects for the development of un- rate structures, assessments and borrowing on
tapped resources. Publicly provided infrastructure local markets. In particular, the rate policies of
facilities and fiscal policies can be powerful forces public utility service systems need to be reviewed
for the promotion of such centers. Failure properly in the context of the prospects for financing public
to select and promote "growth poles" can lead to investments from internally generated sources.
a serious waste of scarce development resources.
Mobilizationfor Housing
Savings
The Urban Region Housing is a central issue in the problem of
The creation of coherent national strategies for urbanization. Migrants and the poor, who make up
urban-regional development will require careful an increasing proportion of existing urban popu--
reappraisal of the economy of the city and its sur- lations, need shelter. A construction industry.,
rounding region. Many cities face problems of particularlv for housing, can have important em-
fragmented administration, inefficient municipal ployment creating effects for the lower unskilled.
or regional utility systems and a general lack of income groups, while at the same time creating a
coordination in planning and in the allocation demand for building materials. W'here the neces-
of investments. Municipalities are often under- sary labor and materials are locally available, an
financed and find it difficult to plan effective important economic sector can be stimulated
budgets and resource allocations. An overall de- without adverse balance of payments conse-
velopment framework within which investment quences-provided that the financial resources
programs can be evaluated and carried out is es- generated for expenditure on housing programs
sential. Urban development strategy should aim do not contribute to excess demand pressures.
at optimizing output and employment in a given Savings thus become a critical element in national
area and providing basic urban works and services housing policies. Institution building and resource
at the lowest cost. mobilization are difficult at this level where

62
financial savingsare not large.Yet the lessonof resourcesthrough improved managementand re-
experienceis that people who are offered the in- source allocation procedures.They can greatly
centive of a housing site with perhapsminimum improve local resource mobilization. The eco-
serviceswill build their own dwelling from inter- nomic and social decisions involved in urbaniza-
mittent savings.Suchhousingdoes not saddlethe tion policy need to be planned and undertaken
owner with large fixed debts and provides more at the sub-national urban level as well as at the
housingat an earlier stageof urban development national level. Objectives must be specified,
than does standardpublic housing. Public policy meansidentified, choicesmadeand a mechanism
should find ways to mobilize this large building devisedfor the efficient carrying out of decisions.
potential by encouraging the use of land for Urbanizationis intimately connectedwith over-
immigrant settlements in ways consistent with all nationaleconomic growth.Strategiesfor urban
overall metropolitan development strategy, and developmentshould, therefore,be basedon com-
without a large diversion of public savings. prehensive economic development considera-
At higher income levels a number of develop- tions; detailed investment planning should aim
ing countries have had a good deal of successin to concentrate on infrastructurepackageswhich
stimulating home building through savingsand promote soundly-basedurban growth within the
loan associations,building societies or savings context of national economic priority needs.The
banks.Thesemay take a variety of forms, ranging World Bank,as the leading multilateral develop-
from fully public to mixed and private associa- ment agency,has already helped to finance the
tions. When tied to the possibility of acquiring a expansionof urban infrastructure,urbaneconomic
long-term loan for a house,the savingsgenerated activity and social servicesin a number of coun-
may be of a kind previously untapped. The ele- tries, notably through its lending programs for
ment of public subsidvneed only be sufficient to public utilities, industry, and education.
supplement what should be basically a savings The Bank is aware of the complex analytical
effort on the part of the private sector. But high problems involved in formulating and carrying
ratesof inflation presenta problem in this context, out sound urban/regionaldevelopmentstrategies;
Unless compensatorymonetary adjustmentsare such strategieswill require a multi-sectoral ap-
made,inflation tends to reduceboth the incentive proach, including consideration of such broader
to saveand the value of the financial assetsof the questionsasfamily planning,training and employ-
institution mobilizing housingsavings. ment. Time and experiencewill be necessaryto
deal with these problems. Further, the costs of
Conclusion urban developmentare likely to be enormous,and
to be largely in the form of local currency. The
Many of the cities of the developing world will Bank can at best only addressitself to those as-
double in population,and probably in size, within pectswhich are consistentwith its terms of ref-
the foreseeablefuture. An opportunity exists to erenceand financial capabilities.As in other fields,
provide for this growth in a far more efficient therefore,the roles of the Bankand of other inter-
mannerthan was done in the past, precisely be- national agenciesare likely to be catalytic in rela-
cause so much of urban growth is yet to come. tion to what must essentiallybecomean expanded
The developing countries can plan for more ra- effort on the part of the developing countries
tional urban growth patterns.They can conserve themselves.

63
Statistical Annex

Table Page
. Selected
Economic
Indicators
for DevelopingandIndustrialized
Countries-Regional
Sum mary.. ....................... ......................... ...... 6.......
66
by OriginandDestination
2 WorldExports . 68
3 Financial
Indicators Countries
for Selected .......
. ......................... ................... ... 69
4 TheFlowof Financial
Resources fromDACCountries
to Developing
Countries
andMultilateral ................
Institutions ................... 71
5 External
PublicDebtOutstanding
andDebtService
Payments
of 81Developing
Countries
.71
6 External
PublicDebtOutstanding
of 81Developing
Countries
by Country 72
7 ServicePaymentson External
PublicDebtasPercentage
of
Exportsof GoodsandServices
.72
8 ExternalPublicDebtIncurredandGrantsReceived
by Selected
Developing
Countries,
Average andTerms.
by Sources 74
9 Disbursements,
Amortization,
Interest,NetFlowandNetTransfer on OfficialGrants
Developing
PublicDebtof Selected
andExternal Countries
.. ..... .................................. 76
10 Estimated
ServicePayments
on Existing External
PublicDebtof 81Developing Countries,
of Indebtedness
by Category .............. ..... .. ... ....... ..... ... .... ... 78
11 Foreign
andInternational
BondIssuesby Market
andCountry
of Borrower
Entity
.80
IssueYieldof NewForeign
12 Average andInternational
Bonds 82

65
 Selected EconomicIndicatorsfor Developingand
Industrialized Countries-Regional Summary
AverageAnnualRatesof Growthand Sharesin GNP,1961-1969
(Percentages)

Region 1961-65 1966 1967 1968 1969(P)

Developing Countries
AverageAnnualRatesof Growth:
TotalGDP .......... .................. 5.1 4.8 5.2 5.9 6.7
Agriculturalproduction . ........... 2.3 1.8 4.6 3.0
Manufacturingproduction . ...... ... 8.4 7.0 5.2 9.2 -
Population. ........................... 2.6 2.6 2.6 2.5 2.5
GDPper capita . ............ 2.5 2.2 2.6 3.3 4.1
Grossinvestment . ............. 6.4 3.9 4.0 9.5 -
Share in GNP:
Grossinvestment ....................... 18.4 18.8 18.1 18.6 -
Savings ............................ 15.9 16.2 15.7 15.8
Africa
AverageAnnualRatesof Growth:
TotalGDP . ........................... 4.3 3.4 4.8 4.8 4.1
Agriculturalproduction . ........... 2.2 0.1 2.9 1.7 -
Manufacturingproduction . .......... 9.7 1.1 4.4 8.9 -
Population . ........................... 2.4 2.5 2.6 2.4 2.4
GDPper capita . .............. 1.9 0.9 2.1 2.3 1.7
Grossinvestment . .............. ...... 2.5 9.7 -0.5 3.7 -
Share in GNP:
Grossinvestment ....................... 15.4 16.5 15.8 15.9 -
Savings... .............. ........... 12.4 13.9 14.4 14.4 -

Southern Europe
AverageAnnualRatesof Growth:
TotalGDP........... ........... 7.3 7.5 4.5 4.9 7.3
Agriculturalproduction .................. 2.5 11.3 1.1 2.0 -
Manufacturingproduction ................ 11.3 13.3 5.3 7.4 -
Population............................ 1.4 1.4 1.5 1.4 1.5
GDPper capita.............. .......... 5.8 6.0 3.0 3.4 5.7
Grossinvestment ....................... 10.8 8.1 3.6 5.8 -
Share in GNP:
Grossinvestment ....................... 24.5 25.0 22.6 22.9 -
Savings............................ 21.2 21.6 19.9 19.8
East Asia
AverageAnnual Ratesof Growth:
TotalGDP . ........................... 5.5 7.2 4.4 7.8 10.0
Agriculturalproduction . ........... 3.0 5.9 -1.9 4.2 -
Manufacturingproduction . .......... 8.1 11.1 11.9 17.0 -
Population............................ 2.8 2.7 2.8 2.8 2.7
GDPper capita . .............. 2.7 4.4 1.6 4.9 7.1
Grossinvestment . .............. 10.7 22.8 5.9 19.5 -
Share in GNP:
Grossinvestment . .............. 15.2 18.9 18.0 19.5 -
Savings. ........................... 11.5 15.8 15.1 16.1 -

Middle East
AverageAnnual Ratesof Growth:
TotalGDP. ........................... 7.4 6.3 6.5 9.2 8.7
Agriculturalproduction .................. 5.4 -4.0 13.2 7.7 -
Manufacturing production . .......... 11.0 8.0 7.0 14.2 -
Population
. ........................... 2.9 2.8 3.0 2.7 2.7
GDPpercapita . .............. 4.4 3.4 3.4 6.3 5.9
Grossinvestment . ............. 8.2 0.4 -0.5 17.2 -
Share in GNP:
Grossinvestment....................... 19.8 18.4 17.6 19.7 -
Savings ............................ 13.0 12.8 12.8 13.3 -
(continued)

66
 Table 1

Region 1961-65 1966 1967 1968 1969(P)

South Asia
AverageAnnualRatesof Growth:
TotalGDP 3.5 1.9 7.4 5.3 6.3
Agriculturalproduction 0.8 -1.1 8.4 4.7 -
Manufacturing production 9.7 -0.6 2.7 3.5 -
Population............................ 2.5 2.5 2.5 2.5 2.5
GDPper capita .... ............ 0.9 -.0.6 4.8 2.7 2.7
Grossinvestment .. ............ 5........
.9 -12.0 8.0 10.5 -
Sharein GNP:
Grossinvestment . .16.1 15.0 15.1 15.7 -
Savings................ .. . .. 13.9 11.9 12.2 13.0 -

Western Hemisphere
AverageAnnualRatesof Growth:
TotalGDP. 5.0 4.7 4.5 5.9 6.4
Agriculturalproduction 3.8 -0.7 5.2 -0.4 4.4
Manufacturing production . .5.8 6.1 4.3 9.3 7.7
Population.. .......................... .0 3.0 3.0 3.0 3.0
GDPper capita..... ................ 1.9 1.7 1.4 2.9 3.3
Grossinvestment . .. .. ....... 4.1 2.9 3.7 8.3 -
Sharein GNP:
Grossinvestment . .19.1 18.8 18.5 18.5 -
Savings . . 18.0 17.6 16.9 16.4 -

Industrialized Countries
AverageAnnualRatesof Growth:
TotalGDP. 5.1 5.5 3.4 5.4 4.9
Agriculturalproduction
.1.8 2.0 6.1 2.7 -
Manufacturingproduction 6.0 7.5 2.3 6.7 -
Population 1.3 1.1 1.0 1.0 0.9
GDPper capita.3.8 4.4 2.4 4.4 4.0
Grossinvestment .6.3 6.4 0.6 7.1 -
Sharein GNP:
Grossinvestment. 21.3 22.0 21.3 21.6 -
Savings.21.9 22.5 21.8 22.2 -

Note: Regional coverage, in termsof GOP,ofcountriesincluded in the computations:

Developingcountries-96%,Africa-91%, SouthAsia-100%, EastAsia-94%, SouthernEurope-100%,Western
Hemisphere-99%,and MiddleEast-78%.
Definitionof Regions
Estimatesfor the followingcountriesareincludedin this table:
DEVELOPING COUNTRIES-74 countriesandterritoriescoveringapproximately
96% of GDPof all developingareas.
Africa: Algeria,Angola,Cameroon, Congo(DemocraticRepublicof), Ethiopia,Gabon,Ghana,Ivory Coast,Kenya,
Libya,MalagasyRepublic,Malawi,Mali, Mauritius,Morocco,Niger, Nigeria,Rhodesia,Senegal,Sudan,Tanzania,
Togo,Tunisia,Uganda,UnitedArab Republic,UpperVoltaand Zambia.Thesecountriesaccountfor 91% of the
aggregate GDPof the region.
SouthAsia: Burma.Ceylon,Indiaand Pakistan(Coverage 100%).
EastAsia:Cambodia, China,HongKong,Indonesia,Korea,Malaysia,Philippines,Singapore,
ThailandandViet-Nam
(Coverage 94%).
SouthernEurope:Cyprus,Greece,Portugal,Spain,TurkeyandYugoslavia (Coverage
100%).
WesternHemisphere:Argentina,Bolivia, Brazil, Chile, Colombia,CostaRica, DominicanRepublic,Ecuador,El
Salvador,Guatemala,Guyana,Honduras,Jamaica,Mexico,Nicaragua,Panama,Paraguay,Peru,Trinidad and
Tobago,UruguayandVenezuela (Coverage99%).
MiddleEast:Iran, Iraq,Israel,Jordan,Lebanonand Syria(Coverage 78%).
INDUSTRIALIZED COUNTRIES
NorthAmerica:Canada and UnitedStates.
WesternEurope:Austria, Belgium,Denmark,Finland,France,Germany,Iceland, Ireland, Italy, Luxembourg,
Netherlands,Norway,Sweden,Switzerland and UnitedKingdom.
Otherindustrialized
countries:Australia,Japan,NewZealandandSouthAfrica.
(P) Preliminary.
Source:WorldBank.

67
 World Exportsby Origin and Destination,1961-1969 Table 2
(F.o.b., Millions of US dollars)

Developing market economies

Exports to Developed Centrally
market 2 Latin planned
Exports from World(') economies() Total(3) America Africa Asia economies

World
1961-65, annual avg. 157,508 105,138 33,116 8,634 7,028 15,018 18,148
1967.214,110 147,390 41,760 10,600 8,330 19,700 23,460
1968....... .. 238.680 165,810 45,960 12,120 8,920 21,700 25,380
1969(P).271,000 190,513 51,490 13,550 10,569 24,390 28,857
Developed market economies
1961-65,annualavg.... 106,862 78,580 23,886 6,768 5,488 10,214 3,986
1967........ .... 149,240 112,170 30,280 8,190 6,300 13,850 6,270
1968. ........... 167,670 126,920 33,690 9,380 6,860 15,400 6;510
1969(P)............ 193,500 147,834 38,700 10,836 7,740 17,415 7,341
Developing market economies
1961-65, annual avg 31,854 22,876 6,840 1,170 1,056 3,590 1,810
1967 . .39,980 29,310 8,130 1,530 1,220 4,200 2,160
1968 . . 44,060 32,670 8,780 1,780 1,290 4,560 2,220
1969(P) 48,100 36,075 9,380 2,020 1,299 4,810 2,378
Latin America
1961-65, annual avg... 9,864 7,384 1,776 810 86 89 686
1967.11,700 8,650 2,270 1,210 63 130 800
1968 12,190 9,030 2,420 1,380 69 162 755
1969(P).13,000 9,620 2,600 1,560 78 195 777
Africa
1961-65, annualavg 6,422 5,208 774 39 454 273 404
1967.8,330 6,680 940 42 540 320 530
1968. 9,720 7,910 1,040 50 600 340 582
1969(P). 10,800 8,856 1,134 54 648 356 619
Asia
1961-65, annual avg 13,788 8,846 3,986 209 464 3,210 724
1967.17,860 12,260 4,610 201 580 3,710 835
1968.19,900 13,850 5,030 250 600 4,040 875
1969(P).. 21,900 15,440 5,475 285 613 4,380 943
Centrally planned economies
1961-65, annual avg.. 18,780 3,682 2,394 690 482 1,218 12,350
1967 ............ 24,890 5,910 3,350 880 810 1,655 15,030
1968. ........... 26,960 6,210 3,480 965 775 1,750 16,645
1969(P) . ......... 28,980 6,626 3,751 1,076 756 1,855 18,190

Includes
; miscellaneousitems not brokendown by destination.
(2) Includesdeveloping countriesof SouthernEurope.
(3) IncludesCaribbeanand PacificIslands.
(P) Preliminary.
Source:United Nations.

68
FinancialIndicatorsforSelectedCountries, Table3
1960, 1965 and 1968
(Percentages
of GDP)

MonetaryLiabilities FinancialLiabilities ClaimsonoPrivateSector

CommercialBanks
Nsarl-BookFinancial Noni-Booking
Demand Time& Sav. Ilostitutions,Time Financial
CountryandYear Carrency Deposits Deposits Accoantsand Bonds Banks Institutions

DevelopedCountries
UnitedStates ........ 1960 5.9 22.8 13.9 20.7 24.0 19.4
1965 5.5 20.0 20.6 25.2 29.5 24.9
1968 5.1 18.6 22.5 24.2 30.8 24.0
UnitedKingdom ...... ~1960 8.2 27.5 11.9 11.5 17.8 17.6
1965 7.5 22.5 11.2 14.6 20.3 18.6
1968 6.9 11]7 12.9 18.3 19.9 22.7
France
........... 1960 13.7 14.4 3.0 14.7 21.0 12.2
1965 13.6 17.8 4.1 20.4 24.8 18.4
1968 12.0 17.8 8.2 25.3 30.7 24.6
Japan........... 1960 7.2 16.0 58.3 28.7 58.6 25.4
1965 7.1 25.2 47.4 27.1 85.9 29.6
1968 7.0 22.6 46.9 27.9 82.3 28.1
DevelopingCountries
Africa
Ghana..... ........ 1960 9.1 5.5 2.7 1.1 4.2 -.
1965 7.2 7.7 3.7 0.6 7.8
1968 6.0 6.3 4.5 0.4 7.8 -
Malagasy
Republic... 1960 - - - -
1965 9.4 7.1 1.0 0.8 16.9 1.0
1968 10.2 7.5 2.2 0.8 19.7 1.4
Malawi...... ... 1960 - - - - .-. -
1965 6.5 8.0 4.6 2.9 7.8 0.9
1968 6.1 7.7 5.4 3.6 10.2 1.3
UnitedArabRepublic
.... 1960 15.1 11.3 5.4 0.3 16.9 3.9
1965 20.5 9.0 8.9 0.9 15.0 4.1
1968 18.3 10.2 8.9 0.8 14.3 4.5
Asia
China...........1960 4.3 4.6 7.5 2.4 8.9 1.9
1965 5.1 8.0 16.3 6.1 19.7 4.9
1968 5.6 8.9 20.0 6.1 24.9 3.9
India....... .. 1960 14.0 5.3 8.2 2.4 8.9 1.1
1965 13.1 6.4 7.3 3.5 10.7 1.8
1968 9.8 5.6 7.3 2.9 10.1 2.1
Korea...........1960 5.8 4.8 2.2 .-- 10.4 6.6
1965 4.0 3.4 4.8 .- 9.8 4.8
1968 5.3 4.8 16.5 21.3 5.5
Pakistan
......... 1960 13.2 6.1 3.5 1.6 6.2 -
1965 11.3 7.1 6.3 1.6 14.1 0.9
1968 9.8 6.7 9.0 1.3 14.9 0.8
Philippines
..... .. 1960 7.7 5.7 8.3 2.8 14.0 4.4
1965 6.5 5.2 10.6 3.1 18.9 6.0
1968 6.1 5.8 15.5 5.5 22.0 8.1
Middle East
Iran......... 1960 4.4 6.4 4.3 0.3 13.4 3.4
1965 4.6 6.7 8.5 0.7 19.3 3.8
1968 4.7 7.8 11.9 0.9 24.4 5.0
Israel.. ... 1960 6.5 12.6 7.8 0.4 18.8 -
1965 6.0 11.4 8.0 7.1 12.7 12.9
1968 7.7 12.7 19.9 12.7 21.8 12.8
SouthernEurope
Cyprus
....... ... 1960 8.2 9.0 27.2 - 35.5 -
1965 8.8 9.5 32.1 4.4 35.7 3.6
1968 8.S 9.7 35.2 5.1 40.3 5.7
Greece...........1960 10.2 3.5 9.9 1.0 13.7 11.3
1965 13.5 3.5 13.4 1.6 16.6 12.1
1968 15.1 3.8 18.7 1.8 20.0 13.6
Spain. .1960 12.2 20.4 30.1 3.8 37.0 7.4
1965 11.7 22.2 37.8 1.9 SO.1 8.7
1968 12.3 23.1 46.4 1.3 60.7 10.8
(centinued)

69
 FinancialIndicatorsfor SelectedCountries, Table3
1960, 1965 and 1968 (continued)
(Percentages
of GDP)
MonetaryLiabilities FinancialLiabilities Claimson PrivateSector
Commercial
Banks
Non-BankFinancial Non-Banking
Demand Time&Sav. Institutions,Time Financial
Countryand Year Currency Deposits Deposits Accounts
and Bonds Banks Institutions

DevelopingCountries(cont.)
SouthernEurope
Yugoslavia
............... 1960 6.7 11.1 12.0 - 29.1 -
1965 6.5 17.6 13.3 5.7 35.9 67.6
1968 8.5 14.1 18.5 16.4 35.9 89.3
WesternHemisphere
Argentina . . 1960 10.9 11.8 6.2 0.1 14.8 3.9
1965 9.2 9.1 7.2 0.7 13.3 1.8
1968 9.8 12.8 8.7 1.8 18.6 2.6
Brazil. . .1960 6.1 16.2 1.1 - 20.5 -
1965 4.7 16.7 0.6 2.7 14.8 3.7
1968 4.2 14.2 1.0 7.5 19.2 9.0
Colombia................ 1960 6.1 8.8 2.2 5.3 11.6 9.2
1965 6.0 9.1 2.4 2.7 11.9 7.8
1968 5.7 9.2 2.4 3.5 11.7 8.9
Costa Rica . . 1960 6.9 8.3 4.5 1.1 21.8 5.9
1965 6.0 9.1 4.0 2.8 20.8 8.9
1968 6.1 11.4 4.4 2.5 18.2 8.1
Guatemala ........ ...... . 1960 5.9 4.1 3.0 0.4 7.7 2.4
1965 5.8 4.2 6.2 1.4 10.9 1.6
1968 5.3 4.2 8!1 0.3 12.4 1.6
Honduras . . 1960 4.8 3.3 2.7 2.3 5.8 3.0
1965 4.7 4.8 4.4 2.1 7.8 5.1
1968 4.6 5.4 6.8 1.2 12.2 6.9
Mexico . . 1960 5.2 5.9 1.7 8.2 4.6 17.7
1965 5.0 6.7 2.8 15.1 5.8 20.5
1968 5.0 7.1 3.1 19.1 6.2 25.0
Venezuela................ 1960 5.8 8.0 6.6 - 15.7
1965 4.2 8.2 7.5 1.4 15.8 1.5
1968 4.4 8.8 8.4 2.2 16.5 2.2

Explanatory Notes:
Currency consistsof coinsand notesin circulationoutsidebanks.
Commercial banksareinstitutionsoffering dema nd depositfacilitiesavailable for paymentandtransferthroughchecks.Includes
ordinarycommercial banks,the commercial departmentof the centralbankand in certaincountries,so-calledsavingsbanks,
whereeithertheyhavelargedemanddepositsor their savingsdepositsappearto be regardedby the holdersas money.
Demand depoositsincludedepositliabilitiesduebycommercial bankstodepositorsotherthanbanksandgovernments, andsubject
towithdrawaland transferby check.
Timeandsavings de,posits
includebalances due by commercial banksthroughpassbookor certificatetransferableintodemand
deposits,but not availablefor paymevtsoutsidebanks.
Anno-banking financialinstitutionsare financialintermediarieswhichacquiretheir resources throughacceptance of depositsby
passbook or the issuanceofcreditinstruments(promissorynotesand bonds),butwhichdo not carrychecking accounts.These
are largely specialized institutionssuchas cooperativebanks,development banks, mortgage banksand postoffice savings
institutions.
Claimsincludeloansas wellas investments.For this table,claimsof banksandnon-bankingfinancialinstitutionsare limited
to thoseonthe privatesector,in ordertoprovideameasureofthe intermediation of the financialsystemwith respectto supply
and demandof fundsin the privatesector.
Sources:Data basedon monetary,bankingand otherfinancialinstitutions'statisticsprovidedby the InternationalFinancial
Statisticsof the IMF,exceptfor adjustmentsbasedon statisticalinformationavailablefromWorldBanksourcesin the cases
of Ghana,Guatemala, Honduras,Mexico,UnitedArab Republic,and Yugoslavia, and for Braziland India,for whichdatahave
beenobtainedprimarilyfromWorldBanksources.

70
The Flowof FinancialResourcesfrom DACCountries(') Table 4
to DevelopingCountriesand Multilateral Institutions, 1964-1969
-Analytical Summary
(Billions of US dollars)

1964 1965 1966 1967 1968 1969(P)

Net Disbursements
Total, Officialand Private................ ............ 9.14 10.41 10.35 11.31 13.19 13.30
TotalOfficial................ .................. 5.94 6.24 6.52 7.08 7.14 7.25
Official Development Assistance . ........
....... .... . 6.02 5.94 6.14 6.69 6.41 6.68
2 .
Grants( ) . .......... ... .. .... ... .. 4.25 4.21 4.28 4.39 4.10 4.38
Loansandother Long-termCapital . ... ....... 1.76 1.72 1.86 2.30 2.31 2.30
OtherOfficialFlows... .......
..... .......
....... -0.07 0.30 0.38 0.40 0.73 0.57
TotalPrivate ......... ...... ..... 3.20 4.17 3.83 4.22 6.06 6.05
Directand PortfolioInvestment ................ ... 2.34 3.42 2.70 3.22 4.46 4.31
PrivateExportCredits. ...... ................... 0.86 0.75 1.12 1.01 1.59 1.73
Volume Indicators (Net Disbursements)
Total Flowas Shareof GNP(%) ..................... 0.75 0.78 0.71 0.73 0.79 0.72
TotalOfficial Flowas Shareof GNP(o%) . ..... .... 0.49 0.48 0.45 0.46 0.43 0.39
Official Development Assistance as Shareof GNP(%). .. 0.49 0.44 0.42 0.43 0.38 0.36
PrivateFlowas Shareof GNP(%) . ............. .... 0.26 0.31 0.26 0.27 0.36 0.33
Terms Indicators (Commitments)
Grantsas a Shareof TotalOfficialCommitments (%) .... 60.2 60.9 62.2 56.1 51.4 59.0
WeightedAverageMaturityof OfficialLoans(years)...... 28.6 22.6 25.1 24.0 26.0 24.3
WeightedAverageGracePeriodof OfficialLoans(years) ... 6.5 4.6 5.8 5.5 6.0 6.1
WeightedAverageInterestRateof OfficialLoans(%) ....... 3.1 3.6 3.1 3.8 3.6 3.5
GrantElementof TotalOfficial Commitments (%)(3) .. .... 82 77 81 76 75 (79)
(') Australia, Austria, Belgium, Canada, Denmark, France, Germany, Italy, Japan, Netherlands, Norway, Portugal, Sweden, Switzerland,
United Kingdom, and United States.
?) Including "grant-like" flows denominated in recipients' currencies and contributions to multilateral institutions.
i') Discountedat 10%.

(P) Preliminary
Note: Items may not add to totals due to rounding.
Source: OECD.

ExternalPublic Debt Outstandingand Debt Service Table 5

Paymentsof 81 DevelopingCountries('), 1965-1968
(Millions of US dollars)

East Middle South Southern Western

Total Africa Asia East Asia(') Europe Hemisphere(')

Debt Outstanding Dec. 31

1965.......... ..... 37,776 6,284 4,167 2,428 8,528 4,126 12,243
1966........ ..... 42,698 7,349 4,632 3,149 10,147 4,328 13,093
1967
.... ...... 47,934 8,058 5,480 3,866 10,766 5,056 14,708
1968-Total.... ..... ... 53,363 8,719 5,950 4,456 11,981 5,526 16,731
-Disbursed ......... . 39,958 6,942 4,770 3,233 9,153 3,949 11,911
1
-Undisbursed(4 . ... 13,405 1,777 1,180 1,223 2,828 1,577 4,820
Service Payments During
1965.. 3,388 468 194 285 355 436 1,652
1966.. 3,897 474 225 358 428 440 1,970
1967....... 4,162 472 273 315 514 438 2,150
1968.... .. ..... 4,673 625 310 411 540 488 2,298
(l) Includes 81 countries as follows:
Africa: Botswana, Burundi, Cameroon, Central African Republic, Chad, Democratic Rep. of Congo, Dahomey, East African Commu-
nity, Ethiopia, Gabon, Ghana, Guinea, Ivory Coast, Kenya, Lesotho, Liberia, Malagasy Republic, Malawi, Mali, Mauritania,
Mauritius, Morocco, Niger, Nigeria. Rhodesia, Rwanda, Senegal, Sierra Leone, Somalia, Sudan, Swaziland, Tanzania, Togo,
Tunisia, Uganda, United Arab Republic, Upper Volta, Zambia.
EastAsia: China, Indonesia, Korea, Malaysia, Philippines, Singapore, Thailand.
Middle East: Iran, Iraq, Israel, Jordan, Lebanon, Syria.
South Asia: Afghanistan, Ceylon, India, Pakistan.
Southern Europe: Cyprus, Greece, Malta, Spain, Turkey, Yugoslavia.
Western Hemisphere: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador,El Salvador, Guatemala,
Guyana, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay, Venezuela.
(O) Does not include suppliers' credits of India.
(1) For Brazil includes private debt and excludes undisbursed amounts.
(4) Due to a lack of information on amounts undisbursed for Ghana, Indonesia, Israel and Lebanon, the entire amount outstanding is
considered as disbursed.
Note: Items may not add to totals due to rounding.
Source: World Bank.

71
 PublicDebtOutstanding
14External of 81 Developing Table6 ServicePayments on ExternalPublicDebt Table7
byCountry,December31, 1968
Countries as Percentageof Exportsof Goods
andServices,1965-1968
(Millionsof USdollnrs) (Percentages)
Disbursed
only includingundisbursed Country 1965 1966 1967 1968
Exonrt Other International
Country Total Total financing private organizntions Governments Africa
Africa Botswana(') ..... ....... 3.6 3.6 5.7 4.2
.
Botswana.............. 10.9 10.9 - 1.3 3.6 6.0 BurundiG) ............ n.a. n.a. n.a. 3.5
Burundi............... 6.0 6.7 1.3 - 4.2 1.2 CentralAfricanRepublic ..... na. n.a. n.a. 2.6
Cameroon ....... ...... 80.3 135.2 0.7 - 32.1 101.8 Chad................ n.a. n.a. n.a. 5.0
Central
. African
21.9 22.3
Republic
Centrl AficanRepubic
21.9 22.3
..........
1.8
1.8
-
-0.2
0.2 20.3
0.3
~~~~~~~~~~~Ethiopia
..............
G..bo...5..0.4.6.04.9
abon .......
4.8 7.1 9.4
494.9
9.3
Chad................ 28.0 44.6 8.1 1.9 7.1 27.4 Ghana ............... 18.6 5.5 5.8 12.3
Congo, Dem.Rep.of........ 375.5 414.3 11.2 4.5 8.6 330.0 Guinea............... n.a. n.a. n.a. 7.9
Dahomey .............. 40.2 41.1 10.0 0.1 - 31.1 IvrCos............ na na6658
East
African
Community
....... 176.1 194.6 0.8 82,1 61.7 49.9 Ivorya2
Cos.n.an.a.6..5.
Ethiopia............... 135.3 236.5 28.0 . 85.3 123.2 Lesoth(3). ........ 5.6 5.7 6.8 6.9(P)
Gabon..... ........ 62.4 73.6 9.2 5.6 24.0 34.7 Lsto 3 ..... ...... n.a. n.a. 1.7 n.a.
Ghana(li.554.4 637.9 303.3 - 66.5 268.0 ~~~~~~~~~~~~
.............. 8.6 ~~~~Liberia
6.0 6.0 6.8
Guinea()............. . 2224.3 6319. 313.5 64.5 223.1 Malagasy Republic(')... ... n.a. 3.7 4.8 5.2
22.3
Guiea.................... 19. 315 - 64. 22.1 Malawi............. n.a. n.a. 6.9 7.0
IvoryCoast...... ........ 186.5 341.0 118.3 23.3 6.5 192.9 MaliC4)
....... . ....... n.a. n.a. 10.1 13.7
Kenya ............... 254.6 343.2 52.2 13.7 51.2 226.1 Mauritania ............. n.a. n.a. 1.5 n.a.
Lesotho............... 6.4 7.2 0.6 - 4.1 2.5 Mauritius.............. 2.3 3.2 3.7 6.5
Liberia............. 158.6 169.0 44.0 - 4.3 120.7 Moco..... ...... 49737479P
Malagasy Republic ......... 82.7 115.2 0.1 4.9 22.8 87.3 Mogrocco.4.9...........7..3 7.4
57 .9(P)
Malawi ............... 67.6 101.3 1.2 16.8 27.5 55.8 Nigeria('...........3n.3 5.4 35. 6.3(P
Mali............... 172.5 213.7 2.6 9.1 202.0 Rada'na.na3529
Mauritania ............. 26.0 43.7 0.8 9.8 6.7 26.3 Senegal.............. 1.4 1.8 1.8 1.7
Maurtiu....................
30.6 31. 2.5 6.6 6.2 5.8 SierraLeone ............ 5.3 6.4 8.0 5.2
Mauritius.30.6 31.1 2.5 6.6 6.2 15.8 ~~~~~~~~~~~~
.............. n.a. ~ ~~~~Somalia
2.0 2.0 1.8(P)
Morocco
.......... .... 566.5 701.3 72.4 38.0 82.0 508.9 Sudan(4)...................5.8 6.4 5.6 7.5
Niger
... ............ 12.7 35.9 11.2 - 7.6 17.1
Nigeria.~~~~~~ ~~~421.3
587.3 16.2 97.4 223.1 250.5 Twanzna(xlazi baand('..... 11.7 39. 9.0 9.4
Rhodesia .............. 220.9 220.9 2.9 121.3 52.8 43.9 Tnai ec.Znia) 2 .. . . .
Rwanda............... 1.9 2.4 0.2 - - 2.2 Tunisia............... 7.7 14.9 21.2 24.0
Senegal............... 59.7 81.5 - 0.2 13.0 68.3 Uganda(2)
...... ......... 5.8 4.5 5.4 8.0(P)
SierraLeone............. 53.2 61.2 20.4 6.7 7.4 26.6 Zambia............... 4.2 2.1 2.3 2.6(P)
Somalia ..... ... .... 54.5 79.4 .. - 8.5 70.9
Sudan ............... 234.6 309.1 33.7 2.7 138.9 133.8
Swaziland.............. 37.3 39.9 14.3 - 9.3 16.4 SouthernEurope
Tanzania .............. 131.5 209.8 23.6 21.0 31.8 133.5 Cyprus............. 1.4 1.4 2.2 1.8
Togo................ 30.1 37.4 4.2 - 3.7 29.5 Greece.............. 4.1 4.5 5.6 5.5
Tunisia............... 450.9 611.3 163.1 2.6 68.7 376.8 Malta
............... 0.5 0.8 1.1 1.2
Uganda .............. 101.2 148.6 5.0 19.6 28.3 95.6 Spain
.........-.... 2.0 1.7 1.6 2.2
UnitedArabRepublic ........ 1,491.2 1,721.7 n.a. n.a. n.a. n.a. Turkey ............- , n.a. 15.9 14.1 13.2(P)
UpperVolta............. 17.7 20.1 0.7 - - 19.4 Yugoslavia ............. 14.4 13.7 12.9 14.0
Zambia............... 189.4 264.3 69.5 45.7 78.0 71.2
EastAsia Middle East
China................ 639.1 842.1 131.4 - 167.9 542.9 1ran(3). 5.8 5.0 5.1 6.9(p)(5)
I ndonesial)).............2,452.0 2,984.8 262.8 195.3 67.0 2,459.7 Iraq..........-.... n.a. 0.8 0.9 1.4(P)
Korea...... ......... 970.2 1,597.8 1,080.9 - 40.3 476.5 Jordan.............. 1.0 1.3 1.5 1.8
Malaysia...............291.0 460.3 12.1 66.2 202.4 179.6 Syria')...... ......... 11.3 11.C 14.2 18.7
 Philippines........... 417.1 . 493.2 200.8 12.6 131.1 148.7 SouthAsia
41.0 80.0 1.2 - 75.9 2.8 Ceylon...... ..... .. 2.0 2.8 3.5 6.9
Singapore............. 13.7 18.2 19.0 16.8
..............
Thailand 246.7 311.3 20.5 - 201.5 89.4 I ndia(3)
(')... .......
Pakistan....... ...... 11.0 13.1 16.8 19.4(P)
Middle East
I ran....... ........ 829.9 1,932.3 672.8 .- 223.1 1,036.4 EastAsia
233.1 254.5 34.8 - 23.0 196.7 China.............. 2.9 3.6 3.2 3.4
Iraq................ 10.3 8.3 7.0 8.6(P)
Israel................1,807.3 1,807.3(2) 636.1 802.4 85.2 283.6 Indonesia .... . ....
93.2 150.5 - - 10.0 140.5 .....
Korea .... .... 2.7 3.6 5.6 7.5
Jordan ............... 1.2 1.4 2.1 2.1
Lebanon(').............. 59.9 95.9 18.2 - 19.7 58.0 Malaysia........ ....
216.8 258.9 57.8 - 8.5 192.6 Philippines............. 5.3 6.3 7.2 5.3
Syria ...............
Singapore ...... ........ 0.1 0.1 0.1 0.2(P)
Thailand ............. 3.2 2.9 3.7 3.5
SouthAsia
Afghaniistan............ 476.1 648.9 - - 3.5 645.4
...............
Ceylon 203.9 336.7 62.5 7.3 46.2 220.6 WesternHemisphere
6,201.4 1,133.5 115.1 3.9 1,639.0 5,915.5 Argentina ............ 20.5 25.5 27.0 27.8
..............
India(a) ..... 4.7 4.8 5.8 5.4(P)
Pakistan............. 2,271.1 3,261.1 270.6 - 778.2 2,212.3 Bolivia..... ...
Brazil(G)...... ... .. 21.5 n.a. n.a. 22.5
Chile....... . 15.4 13.2 12.4 16.4(P)
SouthernEurope 14.4 16.5 13.9 12.9
Cyprus............... 22.3 28.9 0.9 2.2 17.2 8.6 Colombia ... .. ....
.. 546.2 612.4 170.3 184.3 81.4 176.4 Costa Rica...-.. ...... 8.3 10.3 9.7 10.1(P)
Greece... ........ 18.6 11.8 7.9 9.5
...............
Malta 18.5 18.5 - - 5.2 13.3 Dominican Republic.........
761.3 1,153.3 313.8 20.2 202.6 616.6 Ecuador....... . ..... 6.2 6.3 6,2 8.1(P)
Spain................ 3.6 3.7 2.6 2.8
Turkey............... 1,451.9 1,963.0 63.5 19.9 388.0 1,491.6 ElSalvador .. .. .......
1,148.5 1,749.7 373.9 33.2 316.2 1,026.4 Guatemala ...... ....... 5.1 5.4 9.6 7.4
Yugoslavia ............. 4.0 4.6
Guyana....... ......... n.a. 4.6
Honduras....... .... ... 2.5 2.1 2.0 1.7(P)
WesternHemisphere 4.2 2.8(P)
Argentina ... ....... .. 1,714.1 2,221.1 1,043.0 298.5 384.9 494.7 Jamaica ......... . .. 3.2 3.4
295.0 359.7 38.0 67.4 25.8 228.5 Mexico...... ....... . 23.6 24.0 24.8 26.8
Bolivia
............... 4.2 5.2 6.0 6.9(P)
4
Brazil() ..... ........ 2,736.5 4,310.1 1,095.0 414.2(a 749.8 2,051.1 Nicaragua.... ... .
1,268.5 1,842.9 334.8 173.9 238.1 1,095.5 Panama....... ..... 3.5 2.7 2.6 3.6
...............
Chile . 6.7 5.5 7.2 8.1
Colombia ..... . ...... 947.1 1,296.9 184.1 26.2 539.6 547.0 Paraguay............
....... 122.0 162.3 30.5 14.9 64.5 52.4 .
Peru. ............. n.a. n.a. 10.6 20.9
CostaRica ...... 3.4 2.8 2.8 3.3
Dominican Republic ......... 171.6 220.8 22.7 - 4.1 194.0 Trinidad andTobago....-...
. . .. 163.1 274.3 91.3 3.6 71.1 108.3 Uruguay....... ........ 6.7 11.7 20.6 19.5
Ecuador.. .... .. ..... 2.0 2.4 1.8 2.2
ElSalvador ............ 77.2 102.6 11.9 1.0 50.0 39.8 Venezuela ......
Guatemala ............. 89.8 161.2 34.1 30.7 54.2 42.2
Guyana............... 54.4 84.2 1.0 7.8 5.2 70.3 n.a.Signifiesthat data are aot avaifableon debt service,expartearnings,or both.
Honduras ......... .... 51.2 114.1 5.9 - 79.5 28.7 (1) Exportsof goodsonly.
(2) Includes one third of dobtscontractedby the EastAfricanCommonity.
Jamaica ..... ...... .. 114.7 151.7 18.0 68.5 37.0 28.1 (3) Fiscalyear endingMarchsf the followingyear.

Mexico.... .. ....... 2,438.5 3,047.9 1,275.6 394.6 827.5 550.1 (4) FiscalyearendingJose of the foiiowoing year.
Nicaragua .... ... .... 110.8 213.2 12.5 - 67.4 73.3 (s) Projected.
....... 89.9 112.5 0.6 30.7 11.8 69.4 (6) Includesdebtserviceon privatedeht; comparable data not availablefor 1966and 1967.
Panama .......
...........
Paraguay .. 76.1 101.1 21.0 0.3 39.2 40.6 (7) Does not iociode service paymentson suppliers' credits.
Peru. ............ ..... 672.7 1,018.9 514.5 39.5 186.6 218.2 (P)Preliminary.
Trinidad andTobago ...... . 69.1 106.4 19.9 10.8 41.4 34.3 Source:WarldBankand IMr.
Uruguay ................... 250.0 309.1 96.2 23.8 90.9 98.1
Venezuela...... ........ 398.5 519.7 63.5 37.0 279.8 139.4
()As of December 31, 1969.
(2) Undisbursedamountis sat available.
(3) Excladessuppliers'credits.
r.
(4) ncludes debt ot private secto
(5) Includessomelnans from governments.
Note:Itemsmaynoafadd to totalsduets roanding.
t~Souirce:WorldBasik.
! External Public Debt Incurredand Grants Receivedby Selected DevelopingCountries, Table 8
by Sourcesand Terms, 1965-1968 Average

Percentagedistribution by sources and terms

Amount of (million dollars)(') Official donors and creditors Private creditors

Regionand Loans from governments Loansfrom

international Export
country
Other governments organizations financing

Total loans Eastern Up to Over 21 40 yrs. Up to Over Other

Loans Grants
and grants Grants Bloc 21 yrs. to 39 yrs. & over IDA Other 6 yrs. 6 yrs. private
contracted received

Africa
.................
Botswana 0.7 13.1 13.8 94.6 - 5.4 - --
Burundi.................. 10.0 6.6 16.6 87.0 - 4.5 - - 3.6 - - 4.9
Cameroon .................. 16.5 13.3 29.8 44.7 - 26.4 - 3.2 9.7 15.4 0.7 -
CentralAfricanRepublic ..... 3.0 7.7 10.7 71.8 22.4 0.8 - - --- 2.6 3.6 -
............
Chad ...... 6.9 9.6 16.5 58.1 - 11.3 2.4 8.9 1.8 3.5 11.2 2.7
108.0 79.4 187.4 42.4 5.8 8.8 32.4 - - 3.4 6.7 0.6
Congo,Dem.Rep.of .... ,, -
Dahomey .................. 3.1 9.6 12.7 75.4 - 1.8 0.7 1.7 - 4.2 16.2 -
EastAfricanCommunity.... 19.2 - 19.2 - 9.9 1.8 - - 66.4 - - 21.9
..................
Ethiopia 34.5 20.6 55.1 37.4 1.8 12.1 8.3 16.5 6.8 8.3 1.4 7.5 -
.........
Gabon ......... 6.8 7.3 14.1 51.7 -- 26.0 - - 3.9 14.1 4.2
Guinea.................. 61.0 5.6 66.6 8.5 44.2 3.2 4.1 2.3 - 24.8 3.2 9.7 -
IvoryCoast ......... ....... 56.0 8.2 64.2 12.8 - 40.5 5.9 1.9 - 2.7 5.1 26.3 4.7
Kenya.......... ........ 47.0 29.2 76.2 38.3 0.2 5.9 35.8 2.8 11.6 0.8 0.1 4.3 0.3
..................
Lesotho 1.4 10.9 12.3 88.2 - - 2.3 - 8.3 - - 1.2
Liberia.................. 6.1 12.0 18.1 66.2 2.9 1.1 17.8 - - 12.0 -
Republic .......... 11.3 19.0 30.3 62.6 --- 11.7 - 3.9 12.0 6.9 - - 3.0
Malagasy
Malawi.... .... 16.7 22.9 39.6 57.8 - 4.1 20.4 0.1 17.4 -- 0.1 (2)
Mali........ ......... 5.8 8.0 13.8 57.8 17.7 -- 1.9 1.6 16.5 - 1.5 3.0 -
.... .... 9.1 4.4 13.5 32.8 9.3 9.1 - 11.0 - 2.4 17.1 18.2
Mauritania
Mauritius................. 3.0 2.2 5.2 42.3 - 6.7 39.0 - - - 12.0 -

Morocco................. 113.4 51.8 165.2 31.3 3.2 35.1 8.8 2.9 1.7 6.4 0.3 10.3
.......
Niger .......... 7.2 11.2 18.4 60.7 -- 11.9 4.9 8.3 - 6.8 7.4
...
Nigeria ....... 67.5 39.1 106.6 36.7 0.8 25.6 7.2 8.3 10.9 1.7 8.8
.................
Rhodesia 1.8 2.3 4.1 57.2 _ 42.8 (2) - - - - -

.
Rwanda . ... 0.9 9.4 10.3 91.1 - 2.7 0.9 - - - 5.3 -- -

.................
Senegal 12.2 20.7 32.9 63.0 5.1 13.7 7.3 1.0 6.8 3.0 - --
SierraLeone ................ 5.0 6.1 11.1 55.2 5.1 13.2 - - 8.9 0.3 17.3
..............
Somalia ... 7.4 15.3 23.7 67.5 0.7 8.3 - 14.2 9.4 - - -
..........
Sudan 42.1 8.6 50.7 17.0 0.3 32.8 1.3 3.6 4.2 29.6 4.9 6.5
................. 1.7 8.1 9.8 82.6 - 0.7 9.7 - - 7.0 - - -
Swaziland
.................
Tanzania 25.1 25.5 50.6 50.4 4.0 13.5 4.8 9.9 4.0 2.6 1.5 9.0 0.4
7.3 9.9 73.8 - 5.6 3.6 - 9.3 - 5.7 2.0 -
Togo. ................. 2.6
Tunisia .. ............ 103.1 48.2 151.3 31.9 0.6 18.3 6.3 11.7 3.1 6.3 9.1 12.8 -
........ ......... 16.2 12.3 28.5 43.2 0.7 7.3 20.5 5.0 18.7 0.1 - - 4.4
Uganda 0.4
........
UnitedArabRepublic 129.7 58.0 187.7 30.9 11.6 26.7 2.0 - -- 14.6 13.9
UpperVolta................ 2.5 9.3 11.8 78.8 - 19.0 1.6 - - 0.6 - -

...........
Zambia ... 33.1 27.2 60.3 45.1 2.3 13.5 1.1 - - 13.9 .1 5.4 18.7
East Asia
China . ............. 115.7 23.8 139.5 17.1 - 30.0 0.5 - 25.9 9.0 17.0 0.5
Korea . ............. 359.3 156.9 516.2 30.4 - 7.4 (2) 11.4 0.7 0.6 15.7 33.9 -
Malaysia . ........... 77.6 1.5 79.1 1.8 - 23.6 14.8 - - 38.3 - 5.6 15.8
Philippines . .......... 95.5 65.1 160.6 40.5 - 2.0 4.7 - 6.5 39.1 4.9 2.3
Singapore. ................. 16.3 3.8 20.1 19.1 - - - - 79.4 - 1.5 -
Thailand.................. 43.1 40.0 83.1 48.2 - 9.0 7.3 1.3 - 34.0 - 0.3 -

Middle East
Iran.................. 403.2 11.5 414.7 2.8 32.5 17.7 0.6 - - 7.4 2.1 36.7 0.3
Iraq.................. 19.6 3.7 23.3 15.9 - 7.7 - - - - 24.7 14.9 36.9 -
Jordan.................. 16.3 60.5 76.8 78.8 - 6.3 10.3 3.7 1.0 - - -
Lebanon . ........ .. 6.9 8.2 15.1 54.4 - 45.7 - - - - -
Syria . ............. 37.9 4.9 42.8 11.4 48.3 0.9 - - - 4.4 35.0
South Asia
Afghanistan . .......... 47.9 34.6 82.5 42.0 39.1 4.8 5.8 8.3 - - - -
Ceylon............... .. 62.3 11.6 73.9 15.7 8.3 22.8 23.0 1.6 0.7 3.7 6.1 18.2 -
India.................. 808.0 612.3 1,420.3 43.1 0.3 7.6 10.6 24.1 9.4 3.3 0.9 0.7 -
Pakistan ................. 461.6 180.5 642.1 28.1 7.9 12.0 6.9 21.8 4.8 7.9 1.4 9.4 -

Southern Europe
Cyprus........ ....... 0.9 2.6 3.5 75.3 4.6 - - - - 20.1 - - -
Greece.................. 72.1 2.6 74.7 3.5 1.9 19.1 0.3 - - 18.8 23.0 23.7 9.7
Malta .................. 2.2 13.9 16.1 86.5 - - 13.5 - - -
Spain.................. 223.6 3.1 226.7 1.4 - 49.2 - 11.7 24.2 11.4 2.2
Turkey............ ...... 288.1 14.9 303.0 4.9 - 17.2 11.7 38.4 2.1 22.8 0.6 2.4 -
Yugoslavia ....... 247.0 33.1 280.1 11.8 36.7 31.8 - - - 8.2 1.6 9.6 0.2
Western Hemisphere
Argentina. ......... 436.4 7.5 443.9 1.7 0.4 13.6 - 0.2 - 12.8 28.7 22.9 19.8
Bolivia . . 32.1 19.4 51.5 37.8 - 26.8 4.8 16.2 1.0 - 3.6 7.2 2.7
Chile ................. 301.6 25.3 326.9 7.8 1.3 28.2 1.2 20.5 - 8.2 6.9 18.0 7.9
Colombia ................. 183.7 21.8 205.5 10.6 - 10.1 0.4 30.0 - 25.4 12.0 11.6
CostaRica ................. 19.1 6.6 25.7 25.7 - 6.9 0.5 13.9 - 17.5 20.2 1.1 14.1
DominicanRepublic ......... 36.5 33.9 70.4 48.1 - 11.2 1.8 36.8 - - 0.7 1.4 -
Ecuador................. 41.7 13.2 54.9 23.8 2.6 14.1 2.2 3.8 2.3 5.3 6.2 39.7
El Salvador ................. 10.8 8.4 19.2 43.8 - 7.0 7.8 7.1 -- 15.2 19.1 -
Guatemala .......... .. 28.9 10.2 39.1 26.0 2.7 - 10.1 - 27.2 3.8 1.7 28.4
Guyana................. 10.5 7.1 17.6 40.5 - - - 20.2 32.1 - 7.1 - - -

Honduras ................. 19.7 4.8 24.5 19.6 3.5 - 17.7 7.7 47.4 0.5 3.6
Jamaica ........... ... . 27.4 4.4 31.8 13.9 2.4 5.0 3.5 - 37.9 10.7 3.5 23.2
Mexico ....... ..... .... 584.9 10.5 595.4 1.8 (2) 10.2 0.9 (2) - 19.8 33.1 16.0 18.2
Nicaragua .... . 40.9 6.0 46.9 12.8 - 4.1 - 29.4 - 22.4 27.5 3.3 0.5
Panama ............. 10.7 9.1 19.8 51.8 - 5.7 24.7 16.5 - 1.4 - - -

Paraguay .... .. 14.0 4.3 18.3 23.4 (2) 10.4 1.0 16.8 10.2 10.3 4.4 23.4 0.1
Peru....... ... 208.8 26.5 235.3 11.2 - 7.4 - 4.0 - 11.6 29.6 32.6 3.6
TrinidadandTobago. 13.8 7.7 21.5 35.7 - 19.9 3.4 8.5 - 26.7 - 5.9
Uruguay ........ _........ 34.9 4.6 39.5 11.5 - 12.4 14.4 13.2 - 18.5 17.5 12.4
Venezuela ................ 68.9 17.9 86.8 20.6 - 15.7 _ _ 29.2 16.8 4.7 13.0
(1) Grants consist of grants and grant-like contributions by DAC countries and multilateral agencies os compiled by OECD.Loans are commitments (2)Less than 0.05%.
for which repayment terms were reported to IBRD by its member countries. The percentages in this table apply to these loans. The figures Note: Consistent data not available for this period for Brazil, Ghanaand Indonesia.
for loans do not include commitments for which repayment terms are unknown and do not take accountof cancellations. Items may not add to totals due to rounding.
Sources: World Bank and OECD.
N Disbursements,Amortization,Interest, Net Flowand Net Transfer on Official Grants and Table 9
External Public Debt of SelectedDevelopingCountries,(') 1965-1968 Average
(Millions of US dollars)

Official donors and creditors Private creditors Official and private

Regionand country Disbursementson Amortization Net Interest Net Disburse- Amorti- Net Net Net Net
Grants Loans on loans flow on loans transfer ments zation flow Interest transfer flow transfer

Africa
Botswana .................. 13.6 1.8 0.1 15.2 0.2 15.0 - 0.2 -0.1 0.2 -0.3 15.1 14.7
Ethiopia ................... 23.2 21.0 5.1 39.2 2.0 37.2 7.8 4.3 3.4 1.2 2.2 42.7 39.5
Gabon ................... 9.3 5.2 2.3 11.6 1.9 9.8 2.7 0.9 1.8 0.4 1.5 13.5 11.3
Kenya................... 29.3 31.4 4.8 55.8 6.4 49.4 3.5 2.6 0.9 4.1 -3.3 56.7 46.2
Liberia ................... 12.8 14.3 0.8 26.2 2.6 23.6 -0.7 3.7 -4.3 3.4 -7.7 21.9 15.9
Mauritius................... 2.2 3.5 0.5 5.1 0.8 4.4 0.6 1.1 -0.5 0.9 -1.4 4.6 3.0
Morocco ................... 59.1 76.4 15.1 120.5 10.8 109.8 20.0 10.4 9.6 3.5 6.1 130.1 115.8
Nigeria ................... 41.4 68.4 7.1 102.6 7.2 95.5 20.0 19.4 0.7 4.9 -4.3 103.3 91.2
Senegal. . 36.6 2.8 2.4 37.0 1.0 35.9 - (2) (2) (2) (2) 37.0 35.9
Sudan................... 7.0 30.2 4.8 32.3 4.8 27.5 5.7 4.2 1.4 1.9 -0.4 33.7 27.0
Tanzania ................... 25.4 14.5 1.1 38.9 1.9 36.9 5.5 2.4 3.1 2.0 1.2 41.9 38.0
Tunisia....... ............ 44.4 55.6 7.5 92.6 4.3 88.3 40.5 21.3 19.2 5.9 13.3 111.8 101.6
Uganda ... ................ 13.2 8.9 1.2 21.0 3.0 18.1 1.1 1.3 -0.2 1.4 -1.6 20.9 16.5
Zambia ................... 25.7 8.0 5.7 28.0 5.0 23.0 12.0 4.3 7.7 3.5 4.2 35.7 27.2
Middle East
Iran................... 11.1 156.0 38.0 129.1 19.0 110.1 115.2 34.3 80.9 5.1 75.8 210.0 185.9
Iraq................... 3.8 8.3 2.9 9.2 3.0 6.2 10.7 3.0 7.7 0.6 7.1 16.9 13.3
Jordan................... 12.5 11.2 0.9 22.7 0.6 22.1 - - - - 22.7 22.1

East Asia
China................. .. 24.1 52.5 5.1 71.5 4.4 67.1 37.1 14.5 22.6 1.1 21.5 94.1 88.6
Korea................... 155.2 65.2 1.4 218.9 1.9 217.1 181.2 22.7 158.5 5.6 152.9 377.4 369.9
Malaysia ................... 22.0 30.2 7.2 45.1 6.7 38.4 15.7 6.0 9.7 4.1 5.5 54.8 43.9
Philippines ................... 61.6 44.6 7.9 98.3 6.7 91.6 70.8 48.9 21.9 6.8 15.1 120.2 106.7
Singapore ................... 5.4 8.0 1.0 12.4 0.9 11.4 - - - - -- 12.4 11.4
Thailand ................... 45.0 35.4 9.6 70.9 8.8 62.1 0.4 13.7 --13.3 0.3 -13.6 57.6 48.4
South Asia
Ceylon................... 11.2 33.1 7.1 37.1 2.8 34.3 12.6 3.6 9.0 1.1 7.8 46.1 42.1
3 8.7 7.4 2.9 4.4 1,249.3 1,109.9
India() ................... 558.0 867.1 183.0 1,241.9 136.4 1,105.5 16.1
Pakistan ................... 185.4 373.4 45.2 513.5 35.3 478.3 60.5 19.4 41.1 4.4 36.7 554.7 515.0
Southern Europe
Cyprus............... .... 3.1 3.2 0.8 5.5 0.7 4.9 0.2 0.6 -0.4 0.9 --1.3 5.1 3.6
Greece ................. .. 5.1 36.9 10.8 31.3 6.7 24.6 36.0 16.2 19.8 8.3 11.5 51.1 36.1
Malta. , 13.9 3.7 0.4 17.3 0.6 16.6 - - - - - 17.3 16.6
Spain.................. 2.7 106.3 24.9 84.0 11.8 72.3 70.1 12.7 57.4 4.6 52.8 141.4 125.1
Turkey........ .......... 25.2 211.4 76.3 160.3 25.8 134.5 2.1 14.0 -11.9 3.7 -15.6 148.4 118.9
Yugoslavia .................. 7.7 161.1 96.5 72.4 32.4 40.0 105.8 83.8 22.1 18.4 3.7 94.5 43.7
Western Hemisphere
Argentina ............... 9.1 78.3 100.0 -22.6 35.1 -57.6 242.6 223.9 18.7 63.1 -44.4 -3.8 -102.0
Bolivia................... 19.4 19.2 2.9 35.7 1.8 33.9 5.5 2.2 3.2 0.5 2.7 38.9 36.6
Chile................... 31.6 130.8 38.5 123.9 22.5 101.4 80.7 61.5 19.2 13.9 5.3 143.1 106.7
Colombia................... 25.6 120.8 36.8 109.7 18.8 90.8 52.4 41.6 10.8 5.8 5.0 120.5 95.9
CostaRica................... 7.1 13.7 3.7 17.1 2.8 14.3 9.5 8.1 1.4 1.8 -0.5 18.5 13.7
Dominican Republic ....... ... 34.5 29.8 3.7 60.6 1.5 59.1 2.7 12.3 -9.7 1.6 -11.3 50.9 47.8
Ecuador ................... 14.7 16.8 5.2 26.3 3.6 22.7 11.0 4.4 6.7 1.1 5.6 33.0 28.3
ElSalvador ................... 9.2 11.8 3.6 17.3 1.9 15.4 2.7 1.2 1.4 0.3 1.2 18.7 16.6
Guatemala ................... 11.0 7.9 3.6 15.3 1.2 14.1 18.5 11.1 7.4 2.0 5.4 22.8 19.6
Guyana ................... 7.2 4.8 1.3 10.8 2.2 8.5 - 0.6 -0.6 1.1 -1.7 10.2 6.9
Honduras ................... 5.2 6.7 1.2 10.8 1.2 9.6 0.8 0.9 -- 0.2 -0.3 10.7 9.3
Jamaica ................... 5.1 8.1 0.4 12.8 0.6 12.2 10.8 3.6 7.2 4.8 2.4 20.0 14.5
Mexico..... .............. 12.1 165.5 79.8 97.8 37.1 60.7 412.2 320.7 91.5 71.8 19.7 189.3 80.4
Nicaragua................... 6.5 11.4 3.2 14.8 1.9 12.9 14.2 4.5 9.7 0.8 8.8 24.4 21.7
Panama ................... 9.8 9.4 2.9 16.3 1.9 14.4 - 0.7 -0.7 1.4 -2.0 15.6 12.4
Paraguay ................... 5.1 11.4 1.7 14.8 0.9 13.9 5.3 1.6 3.8 0.3 3.5 18.7 17.4
Peru.................. . 23.4 46.9 9.4 60.9 14.9 46.0 137.3 73.6 63.7 13.1 50.6 124.6 96.6
TrinidadandTobago....... 7.7 7.1 2.6 12.2 1.7 10.5 3.9 2.7 1.2 2.7 -1.4 13.5 9.1
Uruguay ................... 5.1 12.8 11.2 6.7 4.6 2.1 23.8 15.6 8.2 3.8 4.4 14.8 6.5
Venezuela .................. 21.8 69.6 28.5 62.9 8.7 54.3 25.4 11.8 13.6 2.6 11.0 76.6 65.3
u) Grantsconsistof grantsandgrant-likecontributionsby DACcountriesand multilateralagenciesascompiledby OECD.
Dataon loansderivedfrominformationreportedto IBROby its membercountries.
(2) Lessthan$50,000.
(3) Excludiogsuppliers'credits.
Note:Itemsmaynotadd to totalsdueto rounding.
Sources: WorldBankandOECD.
=' EstimatedService Paymentson ExistingExternalPublic Debt of 81 DevelopingCountries('), Table 10
1965-1968 Actual Payments,1969-1980 Projected Payments,by Categoryof Indebtedness
(Millionsof USdollars)

Regionand category Actual Projected

of indebtedness 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980

Africa
Loansfrom governments . ........ 170.0 180.6 174.3 251.9 387.9 444.1 452.1 445.1 419.4 397.7 388.4 357.7 334.2 307.4 279.5 254.6
Loansfrom international
organizations . ........... 46.8 48.1 54.0 63.5 66.5 81.3 88.8 91.2 95.2 97.6 86.6 84.7 84.8 77.8 76.6 73.8
Totalofficial creditors..... .......... 216.8 228.7 228.3 315.4 454.4 525.4 540.9 536.3 514.6 495.3 475.0 442.4 419.0 385.2 356.1 328.4
Exportfinancing..................... 128.5 145.7 176.8 206.2 215.9 242.7 216.2 189.7 153.7 128.7 104.3 83.5 62.4 53.4 35.8 26.1
Otherprivatecreditors . ...... 121.4 100.1 67.0 103.8 73.6 75.8 48.7 50.7 50.6 49.1 43.9 32.2 24.2 41.5 37.5 27.1
Total privatecreditors............... 249.9 245.8 243.8 310.0 289.5 318.5 264.9 240.4 204.3 177.8 148.2 115.6 86.7 94.9 73.3 53.2
TotalAfrica....................... 466.7 474.5 472.1 625.4 743.9 843.9 805.8 776.7 718.9 673.1 623.1 558.0 505.7 480.1 429.4 381.6
East Asia
Loansfrom governments ........ .... 53.2 52.4 64.0 84.2 159.2 194.6 242.8 224.0 222.4 213.6 212.6 214.3 202.8 204.8 149.0 144.0
Loansfrom international
organizations . ............. 19.5 22.6 27.9 37.5 44.9 58.8 69.0 77.8 79.8 75.6 75.2 75.9 74.7 71.8 68.0 66.6
Totalofficial creditors............... 72.7 75.0 91.9 121.7 204.1 253.4 311.7 301.8 302.2 289.2 287.8 290.2 277.5 276.6 217.0 210.6
Exportfinancing . ............ 112.2 137.7 168.9 171.5 320.9 369.7 345.3 238.5 162.5 127.8 102.9 84.7 66.4 36.3 20.2 9.0
Otherprivatecreditors............... 8.7 12.8 12.3 17.1 32.4 35.6 10.8 10.9 17.8 13.8 13.6 21.7 12.3 12.1 9.7 10.7
Totalprivatecreditors............... 120.9 150.5 181.2 188.6 353.3 405.3 356.1 249.4 180.3 141.6 116.5 106.4 78.7 48.4 29.9 19.7
Total EastAsia.......... ...... 193.6 225.5 273.1 310.3 557.4 658.6 667.8 551.1 482.5 430.9 404.4 396.6 356.2 325.0 246.9 230.3
Middle East
Loansfromgovernments . ........ 70.3 88.8 78.3 120.3 155.3 186.8 208.0 204.1 194.2 184.4 167.1 137.1 110.1 96.5 81.6 72.0
Loansfrom international
organizations . ............ 15.5 19.3 24.4 28.6 30.9 36.4 37.7 38.8 37.9 37.3 37.0 33.5 26.6 26.6 26.6 25.4
Totalofficialcreditors............... 85.8 108.1 102.7 148.9 186.2 223.3 245.7 242.8 232.1 221.6 204.1 170.5 136.7 123.1 108.3 97.4
Exportfinancing......... ........... 162.8 250.1 212.3 262.3 183.0 185.0 174.9 159.7 128.6 111.8 87.8 71.8 47.7 32.3 24.1 19.8
Otherprivatecreditors . . 36.6 - - - 140.6 88.5 62.8 63.6 65.6 56.2 38.5 81.2 88.1 96.8 213.8 131.2
Totalprivatecreditors... ........... 199.4 250.1 212.3 262.3 323.7 273.5 237.7 223.3 194.2 168.0 126.3 153.0 135.8 129.1 237.9 151.0
Total MiddleEast ......... . 285.2 358.2 315.0 411.2 509.9 496.8 483.4 466.2 426.3 389.6 330.4 323.5 272.4 252.2 346.2 248.4
South Asia
Loansfromgovernments . ........ 227.9 294.0 368.9 367.1 464.0 493.2 517.9 539.0 546.5 545.3 561.8 539.7 525.1 515.7 456.8 423.3
Loansfrominternational
organizations....................... 97.2 111.2 103.7 105.7 132.8 143.1 142.6 138.6 135.5 131.4 126.3 121.2 131.9 125.3 96.9 88.1
Totalofficialcreditors............... 325.1 405.2 472.6 472.8 596.8 636.4 660.5 677.6 682.0 676.7 688.1 660.9 657.0 641.0 553.6 511.4
Exportfinancing...... .............. 26.7 21.9 40.1 66.1 67.0 77.7 82.6 70.1 62.3 46.8 39.2 32.4 25.2 13.7 7.9 3.0
Otherprivatecreditors............... 2.8 1.2 1.2 1.0 6.3 7.9 7.5 8.3 7.8 6.4 10.1 5.5 5.4 4.8 3.6 3.5
Totalprivatecreditors............... 29.5 23.1 41.3 67.1 73.3 85.6 90.2 78.4 70.1 53.3 49.3 37.9 30.6 18.5 11.5 6.5
TotalSouthAsia ........ . 354.6 428.3 513.9 539.9 670.1 722.0 750.7 756.1 752.1 729.9 737.4 698.6 687.6 659.5 565.1 517.9
 Southern Europe
.............. . 218.5' 223.9 222.4 260.7 266.5 275.5 310.2 291.0 302.3 341.3 255.6 238.5 224.7 206.0 190.6 143.3
Loansfrom governments
Loansfrom international
57.6 46.4 56.0 76.6 116.4 95.9 90.0 77.3 77.9 78.5 77.5 74.0 70.9 67.7 65.7
organizations.62.9
281.5 268.8 316.7 343.1 391.9 406.1 381.0 379.6 419.2 334.0 316.0 298.7 277.0 258.3 209.0
Totalofficialcreditors.281.4
........ . .. 139.7 145.1 153.9 156.5 170.5 163.9 239.2 178.9 122.8 66.2 48.5 30.4 23.5 12.3 8.8 5.7
Exportfinancing.
13.3 15.6 15.2 13.1 14.2 12.1 11.1 11.8 10.1 9.5 9.2 8.8 10.4 10.2 10.0
Otherprivatecreditors.15.0
158.4 169.5 171.7 183.6 178.1 251.3 190.0 134.5 76.3 57.9 39.6 32.2 22.6 19.0 15.6
.154.7
Totalprivatecreditors
439.9 438.3 488.4 526.7 569.9 657.3 571.0 514.1 495.5 392.0 355.6 330.9 299.6 277.3 224.7
TotalSouthernEurope .436.1

Western Hemisphere
.529.5 623.1 679.3 593.6 552.8 577.7 543.9 480.0 424.2 373.9 337.6 319.2 304.1 283.6 258.2 241.6
Loansfrom governments
Loansfrom international
181.1 214.8 230.7 325.3 282.3 300.4 317.2 331.3 313.5 306.3 290.4 278.4 264.9 248.6 236.8
organizations .143.2
804.2 894.1 824.3 878.1 860.0 844.3 797.3 755.5 687.4 643.9 609.6 582.6 548.5 506.8 478.4
Totalofficial creditors.672.7
. .. .. 885.9 996.7 1,029.4 1,192.9 1,047.0 917.7 754.2 651.3 531.6 333.1 254.9 203.6 139.7 111.2 65.3 50.5
Exportfinancing ..... .........
....... 93.6 169.6 226.3 280.8 232.9 192.0 196.7 227.8 217.4 162.5 117.4 104.1 96.0 100.5 81.0 67.6
Otherprivatecreditors.......
. 979.5 1,166.3 1,255.7 1,473.7 1,279.9 1,109.7 950.8 879.0 749.0 495.7 372.2 307.6 235.7 211.7 146.3 118.1
Totalprivatecreditors .............
..... ..... 1,652.2 1,970.5 2,149.8 2,298.0 2,158.0 1,969.6 1,795.1 1,676.3 1,504.5 1,183.1 1,016.1 917.2 818.3 760.2 653.1 596.6
TotalWesternHemisphere

All Developing Areas

Loansfromgovernments ........... . 1,269.4 1,462.8 1,587.2 1,677.8 1,985.7 2,171.9 2,274.9 2,183.2 2,109.0 2,056.2 1,923.1 1,806.5 1,701.0 1,614.0 1,415.7 1,278.8
Loansfrom international
........... 385.1 439.9 471.2 522.0 677.0 718.3 734.4 753.6 757.0 733.3 709.9 683.2 670.4 637.3 584.4 556.4
organizations...........
Totalofficialcreditors................ 1,654.5 1,902.7 2,058.4 2,199.7 2,662.7 2,890.4 3,009.2 2,936.8 2,866.0 2,789.4 2,632.9 2,489.6 2,371.5 2,251.4 2,000.1 1,835.2
........ 1,455.8 1,697.2 1,781.4 2,055.5 2,004.3 1,956.7 1,812.4 1,488.2 1,161.5 814.4 637.6 506.4 364.9 259.2 162.1 114.1
Exportfinancing.........
.... 278.1 297.0 322.4 417.9 498.9 414.0 338.6 372.4 371.0 298.1 233.0 253.9 234.8 266.1 355.8 250.1
Otherprivatecreditors.......
1,733.9 1,994.2 2,103.8 2,473.4 2,503.3 2,370.7 2,151.0 1,860.5 1,532.4 1,112.7 870.4 760.1 599.7 525.2 517.9 364.1
Totalprivatecreditors ...... .......
3,388.4 3,896.9 4,162.2 4,673.2 5,166.0 5,260.8 5,160.1 4,797.4 4,398.4 3,902.1 3,503.4 3,249.7 2,971.1 2,766.6 2,518.0 2,199.6
Grandtotal.......................

Includesthe same countries as Table 5.

(1)
Note: Items may not add to totals due to rounding.
Source:WorldBank.

D4
Foreignand InternationalBond Issuesby Market and Countryof BorrowerEntity, 1965-1969, First Half 1970(1) Table 11
(Millions of US dollars)

Year and Market

Borrowing country 1965 1966 1967 1968 1969 1970(P)

North 2
North North North 3
North 2
North
America Europeo) Total America Europe(2) Total America Europe(z) Total America Europe(Z) Other() Total America Europe() Total America Europe(') Total

Industrialized Countries
Europe
Austria . ..... ....... - 11.8 11.8 - 38.2 38.2 - 85.1 85.1 - 93.3 - 93.3 - 70.5 70.5 -
Belgium .................... - 20.0 20.0 - 40.0 40.0 - 50.0 50.0 - 40.0 - 40.0 - 27.5 27.5 - -
Denmarkn m .. 35.0 35.0 - 47.6 47.6 - 72.0 72.0 - 105.8 - 105.8 - 118.9 118.9 - 30.0 30.0
Finland.................. _. 25.0 11.2 36.2 - 1.0 1.0 15.0 25.0 40.0 - 87.4 - 87.4 - 82.1 82.1 - - -
France...................... - 41.5 41.5 - 27.1 27.1 - 157.2 157.2 - 123.8 - 123.8 - 241.1 241.1 - 98.7 98.7
Germany ................... .- 28.1 28.1 79.4 79.4 - 70.7 70.7 - 8.6 - 8.6 2.8 229.3 232.1 - 33.0 33.0
Iceland
. .................... 0.3 --- 0.3 - 6.0 6.0 18.0 18.0 4.8 - 4.8 - 6.3 6.3 - - -
Ireland . ............. 6.5 3.6 10.1 - 33.6 33.6 - - - - - - - 57.5 57.5 - 15.0 15.0
Italy . .. - 80.0 80.0 - 60.0 60.0 - 73.1 73.1 - 84.2 - 84.2 - 168.9 168.9 - 270.0 270.0
Luxembourg ........- _ - _ _ _ - _ _ _ _ _ _ _ _ _ _
Netherlands ............ - 38.9 38.9 - 41.4 41.4 - 180.0 - 180.0 -- 178.9 178.9 -- 82.3 82.3
Norway
.................... 15.0 92.5 107.5 10.0 10.0 20.0 12.0 83.5 95.5 - 40.7 - 40.7 - 24.0 24.0 - 56.6 56.6
Sweden..................... --- 71.2 71.2 - 34.0 34.0 - 30.0 30.0 - 11.6 - 11.6 - - - -- -
Switzerlandt... . .- - -. - - - - - - - 60.0 60.0 - -
United Kingdom ..............4 80.0 48.1 128.1 4.5 51.6 56.1 - 74.2 74.2 _ 148.9 - 148.9 - 263.5 263.5 71.9 71.9
Multinationalcorporations( ) .... - - - 62.5 62.5 - 157.0 157.0 - 33.9 - 33.9 - 70.0 70.0 - 31.0 31.0
Others
Australia
.................... 12.5 72.4 84.9 - 25.0 25.0 - 100.8 100.8 - 88.9 - 88.9 - 116.0 116.0 - 13.9 13.9
Canada.................... 1,063.5 - 1,063.5 1,239.3 - 1,239.3 1,332.0 16.0 1,348.0 1,261.6 323.5 - 1,585.1 1,455.8 315.2 1,771.0 334.7 93.6 428.3
Japan ..................... 62.5 35.0 97.5 - - - 15.0 - 15.0 - 178.9 - 178.9 9.0 261.0 270.0 - 51.6 51.6
New Zealand.................. .. 48.0 48.0 - 58.6 58.6 - 82.2 82.2 - 34.4 --- 34.4 - 25.0 25.0 - -
SouthAfrica.................. - 12.5 12.5 - 25.0 25.0 - - 62.5 62.5 - 55.0 -- 55.0 - 38.8 38.8 --- 39.3 39.3
UnitedStates... ........ - 340.9 340.9 - 629.3 629.3 - 597.8 597.8 3.2 2,222.1 - 2,225.3 1.2 1,435.5 1,436.7 - 733.7 733.7
Sub-total.................... 1,265.3 951.8 2,217.1 1,253.8 1,267.8 2,521.6 1,374.0 1,796.5 3,170.5 1,264.8 3,865.8 _ 5,130.6 1,468.8 3,790.0 5,258.8 334.7 1,620.6 1,955.3
Multilateral European
Institutions
Council of Europe ........... - 7.5 7.5 - 6.0 6.0 - - - - - - - - - - - -
Eurofima()
.................... . 24.3 24.3 -- 6.9 6.9 - 42.0 42.0 --- 31.1 31.1 - - - - 7.0 7.0
EuropeanCoalandSteel
Community ................. - 37.5 37.5 - 127.0 127.0 - 52.5 52.5 - 63.0 - 63.0 - 13.8 13.8 -- -
EuropeanInvestmentBank..... - 50.9 50.9 - 133.5 133.5 20.0 179.5 199.5 - 100.0 - 100.0 - 82.3 82.3 - 27.3 27.3
Interfrigo(6) .....-........... - - - 6.9 6.9 - - - - - - -- - 9.2 9.2 - - -
Sub-total .................... - 120.2 120.2 - 280.3 280.3 20.0 274.0 294.0 - 194.1 - 194.1 - 105.3 105.3 - 34.3 34.3
Total................... . 1,265.3 1,072.0 2,337.3 1,253.8 1,548.1 2,801.9 1,394.0 2,070.5 3,464.5 1,264.8 4,059.9 - 5,324.7 1,468.8 3,895.3 5,364.1 334.7 1,654.9 1,989.6
International Development
Institutions
Asian Development Bank .... ... - - - - - - - - - - - - - 15.0 15.0 - 5.0 5.0
WorldBank......... ......... 223.1 312.0 535.1 212.0 283.2 495.2 400.0 297.4 697.4 413.9 753.6 72.0 1,239.5 - 712.8 712.8 - 442.8(i) 442.8
Inter-American Development
Bank. .. - - -- - 100.6 100.6 110.0 36.0 146.0 70.0 96.0 - 166.0 - 137.2 137.2 - 34.3 34.3
Sub-total
........... ...... 223.1 312.0 535.1 212.0 383.8 595.8 510.0 333.4 843.4 483.9 849.6 72.0 1,405.5 - 865.0 865.0 - 482.1 482.1
 Developing Countries
Algeria.....................-.-. 15.0 - 15.0------
Argentina......... .......... -- - 23.5 - 23.5 _ 25.0 25.0 25.5 50.0 75.5 51.1 60.4 111.5 2.4 11.6 14.0
.................... - - 14.0 - 14.0 - - - -
Bahamas
Brazil............. .... . ___ - - - - _ - 0.8 10.0 - 10.8 1.0 10.0 11.0 - 5.5 5.5
Colombia .................... - 0.5 7.0 7.5 - - - 1.1 - 1.1 0.7 - 0.7
DominicanRepublic ... - . - .. ......... - - 0.2 - - 0.2 - - - - -
EAC) ...... - - - - - - - - 16.8 - 16.8 - - - -
Gabon ........ .. - - - -- 2.4 2.4 - - - - - 3.6 3.6
-
- ..........
Greece ...........-.- - -- - - 25.0 - 25.0 - ---- -2 - -
Iran............ ........ - -- - - 20.0 20.0 - 8.0 8.0 - -
Israel................ . . 96.3 25.0 121.3 119.7 23.0 142.7 203.1 18.0 221.1 179.0 3.5 182.5 151.3 35.0 186.3 49.9 - 49.9
IvoryCoast.............. . . . - 6.1 6.1 - - - - -- - 16.1 - 16.1 - - - - -
Jamaica ................. . . - 8.8 8.8 7.5 8.4 15.9 - - - - 7.2 - 7.2
......... ............ 6.0 6.0 - - - - - - - - - - - - - - - -
Liberia
Malagasy Republic ........... - - - - - 4.1 - 4.1
Malaysia ................ . . 25.0 - 25.0 - - - - 21.0 21.0 - 6.3 - 6.3 - 10.0 10.0 - - -

Mexico................ . . 51.4 - 51.4 15.7 45.0 60.7 39.6 85.0 124.6 9.0 138.6 - 147.6 26.0 61.4 87.4 - - -
Netherlands Antilles ... - - - - --- - 13.8 13.8 - - - - - - - -
Nicaragua . . ............ ...... - - - - - 1.5 - 1.5 - - 1 .
Panama.................... - - - - - - 7.5 - 7.5 - -- - - --
Peru................ . . - - 4.0 18.5 22.5 11.3 5.8 17.1 - - - 5.8 5.8 - -
Philippines . . ................ 18.0 18.0 - -- - 8.0 - 8.0 15.0 - 15.0 11.0 - 11.0 - -
Portugal.............. . . - 20.0 20.0 - 29.0 29.0 - 34.0 34.0 -- 15.0 - 15.0 - - - - -
Senegal....... ............ - - - - - 6.1 - 6.1- - - - 6 .-
Spain.......... .......... - - - - - - - 53.0 53.0 60.0 - 60.0 - 25.0 25.0 - -
Thailand. ................... -- - - -- 1.0 - 1.0 - - - - - - - - - -
Trinidadand Tobago ... 10.0 - 10.0 - - - - 7.2 -- 7.2 - - - -
Venezuela ............... . 15.5 - 15.5 4.3 - 4.3 1.1 - 1.1 - 25.0 - 25.0 8.2 - 8.2 - 13.3 13.3
Sub-total.... . ......... ... 222.2 59.9 282.1 203.7 126.3 330.0 273.6 262.6 536.2 289.5 350.9 - 640.4 249.7 215.6 465.3 53.0 34.0 87.0
Total ............ . 445.3 371.9 817.2 415.7 510.1 925.8 783.6 596.0 1,379.6 773.4 1,200.5 72.0 2045.9 249.7 1080.6 1,330.3 53,0 516.1 569.1
Recapitulation
InternationalDevelopment
Institutions ........ ......... 223.1 312.0 535.1 212.0 383.8 595.8 510.0 333.4 843.4 483.9 849.6 72.0 1,405.5 - 865.0 865.0 - 482.1 482.1
Developing Countries .. ....... 222.2 59.9 282.1 203.7 126.3 330.0 273.6 262.6 536.2 289.5 350.9 - 640.4 249.7 215.6 465.3 53.0 34.0 87.0
Total . . .......... 445.3 371.9 817.2 415.7 510.1 925.8 783.6 596.0 1,379.6 773.4 1,200.5 72.0 2,045.9 249.7 1,080.6 1,330.3 53.0 516.1 569.1
IndustrializedCountries .. 1,265.3 951.8 2,217.1 1,253.8 1,267.8 2,521.6 1,374.0 1,796.5 3,170.5 1,264.8 3,865.8 - 5,130.6 1,468.8 3,790.0 5,258.8 334.7 1,620.6 1,955.3
MultilateralInstitutions........ - 120.2 120.2 - 280.3 280.3 20.0 274.0 294.0 - 194.1 - 194.1 - 105.3 105.3 - 34.3 34.3
Total . . . 1,265.3 1,072.0 2,337.3 1,253.8 1,548.1 2,801.9 1,394.0 2,070.5 3,464.5 1,264.8 4,059.9 - 5,324.7 1,468.8 3,895.3 5,364.1 334.7 1,654.9 1,989.6
Grandtotal... .. 1,710.6 1,443.9 3,154.5 1,669.5 2,058.2 3,727.7 2,177.6 2,666.5 4,844.1 2,038.2 5,260.4 7,370.6
0
72. 1,718.5 4,975.9 6,694.4 387.7 2,171.0 2,558.7

(') Includesissuesboth publiclyofferedand privatelyplaced. (5)SocieteEuropeenne pourle Financement de Mat6rielFerroviaire.

(a) IncludesLondon,Continental Europeandthe EurobondMarket. (C) Societ6FerroviaireInternationalede TransportFrigorifiques.
(a) IncludesKuwaitandSaudiArabia.
in Japan.
(7) Includes2 issuesof Y72.0biliionprivatelyplaced
of diversenationalities.Theyincludethefollowingcorporations:AmeribasHoldings, (8) EastAfricanCommunity.
(4) Thesearecompanies whichhave severalparentcompanies
BEC FinanceN.V., CompagnieInternationaledes Wagons-Lits et du Tourisme,QueenslandAlumina Holdings,N.V. Rotterdam-Rijn (P) Preliminary.
Pijpleiding,Shell InternationalFinanceN.V., Soci6teFinancijreEuropeenne, TransalpineFinance Holdings,Shell Frangaise. Source:WorldBank.

Co
-k
Average Issue Yield of New Foreign and International Bonds, 1965-1969, First Half of 1970(l) Table 12
(Percentages)

Issued in North American Markets by(') Issued in EuropeanMarkets by Issued in Eurobond Market by

Year and quarter Inter- Other Inter- Other Other Inter- Other
of issue American national U.S. lndustri- Develop- national U.S. Industri- Develop-
World Development World Development Corpo- alized 4 ing 3 World Development Corpo- alized 4 ing
Bank Bank Canada(') Others(') Bank Institutions rations Countries( ) Countries( ) Bank Institutions rations Countries)) Countries(3)

1965
First Quarter .......... . 4.55 - - 6.63 5.50 - 5.86 5.89 - - - 6.01
Second Quarter .......... . -- 4.75 6.06 4.75 - 5.51 7.36 - 6.06 5.97 -
Third Quarter ............ - - 4.85 7.00 - - 4.75 6.46 - - 6.09 6.07 -
Fourth Quarter ........... - - 5.25 6.66 - - 6.06 6.00 - - 5.21 6.08 -

1966
First Quarter .......... . 5.98 - 5.50 7.09 - - 5.00 5.71 - - -- 5.27 6.53 -
Second Quarter .......... 5.39 - 5.60 6.92 - 5.33 - - 5.84 6.74 6.72
Third Quarter ......... - - 6.25 - - 5.75(6) - 6.57 6.00 - - 7.24 6.90 7.26
Fourth Quarter ........... 6.41 - 6.37 - - 6.89 7.25 - - 6.75 6.88 7.35

1967
First Quarter.......... . 5.35 5.20 5.81 - - - 5.62 6.35 - - - 6.23 6.84 7.78
Second Quarter .......... - - 6.35 - 5.04 - - 5.35 5.78 - - 6.29 6.69 7.28
Third Quarter ............ 5.95 - 6.51 7.19 - - -- 5.50 6.34 - - - 5.77 6.83 7.45
Fourth Quarter ............
- 6.55 6.86 7.25 6.00 7.25()) 5.25 6.71 7.36 - - 5.11 6.90 7.24

1968
First Quarter ............ 6.71 - 7.06 - 7.08 _ 5.27 6.10 8.68 - - 5.34 7.37 8.33
Second Quarter .......... - - 7.37 7.12 5.89 6.98(6) 5.60 6.71 - - - 5.09 7.18 7.42
Third Quarter ............ 6.54 - 7.30 - 6.56(5) 6.16(6) - 5.56 - - - 5.72 5.99 7.48
Fourth Quarter ... ....... - 6.78 7.28 5.92 5.35 7.16(6) 5.65 6.41 7.42 - _ 6.51 6.88 7.75

1969
First Quarter ....... 7.76 - - 6.46(6) 5.28 6.28 6.00 - - 5.92 6.40 8.19
Second Quarter .......... - - 8.21 6.50 6.77 - 5.70 6.61 6.86 - - 6.80 6.79 7.06
Third Quarter ............ - - 8.82 - - 7.24(6) 6.45 7.18 - 7.41(7) 7.62 7.50 7.73
Fourth Quarter ........... - - 9.61 _ 6.28 7.00 8.79 - 7.44 7.12 9.00

1970 (P)
First Quarter ..... - 9.49 - - - 6.44 6.38 7.50 - - 7.79 8.31 -
Second Quarter .......... 7.00 - 7.19()) 6.50 7.58 - - 9.03 8.40

(1) Includes publicly offered bonds only.

(a) Includes Canadaand United States.
(3) Issues by governments, public and private corporations.
(4) Issues by governments, public and private corporations, and multilateral Europeaninstitutions.
(5) Includes issue in Kuwait.
() Issues by Inter-American Development Bank.
(7) Issue by Asian Development Bank.
(P) Preliminary.
Source: WorldBank.
Bank Appendices

Page
A BalanceSheet ...... .... ...... 84
B Statementof Incomeand Expenses 86
SCStatementof Subscriptionsto CapitalStockand
Voting Power . . 87
D SummaryStatementof Loans.. .. ..... . .. . 89
E SummaryStatementof FundedDebt 91
F Notesto FinancialStatements 92

OPINIONOFINDEPENDENT
AUDITOR
.93

G Statementof LoansSignedDuringthe
FiscalYear1969/70.94

83
BalanceSheet

Jine 30, 1970

Expressed in UnitedStatesCurrency-SeeNotesto FinancialStatements,AppendixF

Assets 1970 1969

DUEFROMBANKSANDOTHERDEPOSITORIES
Membercurrencies
...........
Unrestricted .............. .......................... $ 28,305,616 $ 20,929,825
Subjectto restrictions-NoteB.... ............................... 81,009,906 81,629,458
$109,315,522 102,559,283
Non-membercurrency(Swissfrancs)............ ...... ............... 7,514,211 2,295,449
$ 116,829,733 104,854,732
INVESTMENTS
Obligationsof governments and their instrumentalities (At cost or amortized
cost;faceamount$980,646,233-1970, $763,633,501-1969) ..... .... $968,842,430 756,328,705
Time deposits.. ................................................. 750,846,474 619,459,826
Accruedinterest.............................................. ..... 61,282,344 33,558,193
1,780,971,248 1,409,346,724
RECEIVABLE ONACCOUNT OFSUBSCRIBED CAPITAL
(SeeAppendixC)-Note B
Non-negotiable,
non-interest-bearing,
demandnotes..... ................. $348,221,329 368,683,103
Amountsrequiredto maintainvalueof currencyholdings.............. 2,867,635 7,950,786
351,088,964 376,633,889
EFFECTIVE LOANSHELDBY BANK(SeeAppendixD)
$2,373,035,367-1969)
(Includingundisbursedbalance$2,925,876,958-1970, 8,888,920,209 7,986,944,376
CHARGES
ACCRUED ONLOANS ............ 96,281,212 90,641,153

RECEIVABLE FROMPURCHASERS ONACCOUNT OF EFFECTIVE LOANS

AGREED TO BESOLD(Including undisbursedbalance$12,825,125-1970,
.... .........
$31,851,150-1969) ............... ............... -23,910,714 47,660,572

BONDISSUANCE
UNAMORTIZED COSTS
......... ................... 34,427,794 34,964,306

LANDANDBUILDINGS .............. .................................. $ 40,386,877 37,910,133

Less-Reservefor depreciation ........................................ 3,922,989 3,386,831
36,463,888 34,523,302
OTHER .....
depositsNil-1970, $15,000,000.-1969)
ASSETS(Includingspecial 7,302,585 23,597,167

SPECIALRESERVE FUNDASSETS-NoteC
Duefrom Banks-membercurrency-UnitedStates....................... $ 693
Investmentsecurities-Obligations of UnitedStatesGovernment anditsinstru-
mentalities(At cost or amortizedcost; face amount $292,128,806-1970,
$290,915,000-1969) ............ ..................................... 291,750,341 291,331,229
Accruedloancommissions..... ...... ...... ___ ... 134,800 172,306
291,885,834 291,503,535
STAFFRETIREMENT PLANASSETS
(Segregatedand heldin trust).......................................... 50,017,638 43,720,909
TOTAL................................................... $11,678,099,819$10,444,390,665

84
 Appendix A
International
Bankfor
Reconstruction
andDevelopment

Liabilities, Reserves and Capital 1970 1969

lIABILITIES
Accruedinterestonborrowings ......................... ....... ...... $ 91,240,879$ 76,416,466
Accountspayable andotherliabilities................................. 8,708,488 12,815,638
Dueto International Development Association ......... ................... 162,640,000 92,200,000
Undisbursedbalance of effectiveloans(SeeAppendix D)
Heldby Bank........ . .............................
............. $ 2,925,876,958 2,373,035,367
Agreedto besold........ ...................... .... ....... 12,825,125 31,851,150
2,938,702,083 2,404,886,517
Funded debt(SeeAppendix E)
(Including
amountduewithinoneyear$509,684,670-1970,
$388,268,069-1969)
......... ........................... .... 4,568,304,977 4,081,215,562

RESERVES
Special
reserve-Note C........... ..... .... ...... I ........ $ 291,885,834 291,503,535
Supplemental againstlosses
reserve onloansandguarantees andfrom
currencydevaluations-Note D.... .... ........ ................... 1,036,858,375 962,890,283
1,328,744,209 1,254,393,818

STAFF
RETIREMENT
PLANRESERVE
............. ........... ..... . 50,017,638 43,720,909

CAPITAL
Capitalstock(SeeAppendix C)-NoteE
Authorized240,000sharesof $100,000
parvalueeach
Subscribed 231,588
shares-1970,230,364shares-1969 . . $23,158,800,000 23,036,400,000
Less-Uncalledportionof subscriptions-Note
F.................... 20,842,920,000 20,732,760,000
2,315,880,000 2,303,640,000
Payments onaccountof pending
subscriptions
...................... 992,270 3,664,000
Netincome-Note D
FiscalyearendedJune 30 (SeeAppendix
B)......................... 212,869,275 171,437,755

TOTAL
........................... .... ................ . $11,678,099,819
$10,444,390,665

85
Statementof Incomeand Expenses AppendixB
InternationalBankfor
Reconstruction
and Development
For the Fiscal Years Ended June 30, 1970 and June 30, 1969
Expressedin United States Currency-See Notes to Financial Statements, Appendix F

July 1-June 30

1969/70 1968/69

Income
Incomefrom investments
................................................................. $149,217,323 $ 88,133,128

Incomefrom loans:
Interest...... ................... ......................... ........ 326,619,819 302,903,683
Commitment charges ......... .17,613,602
............................ 1 1,391,058
Commissions ....... .................................. 3 ,4 486,190
190...........................3
Servicecharges. ...................................................................... . 45,708 64,089
Otherincome..................... ...................................................... 10,788,907 7,787,396
GROSSINCOME $504,667,,658 $410,765,544
$..................................................................
Deduct-Amountequivalentto commissions
appropriatedto SpecialReserve-NoteC............ 382,299 486,190
Gross Income Less Reserve Deduction .......................................... $504,285,359 $410,279,354

Expenses
Administrativeexpenses (IncludingInternationalDevelopment Association)(')
Personalservices....................................................................... $ 31,847,042
$ 24,533,292
Contributions to staff benefits ................. . 5,146,089 3,937,403
Feesandcompensation ....................................................... 4,284,601 2,210,876
Representation ......... ..... ... ........ .......... ..... ..... 330,445 300,420
Grantsto membercountries ............................................................... 376,043 509,892
FAOand Unescocooperative programs....................... ....... ................... 2,055,973 1,701,520
Travel....................... ........................ 8,717,178 6,497,783
Suppliesand material ................................................................ 486,901 332,048
Officeoccupancy ............... ........................................................ 3,553,635 2,180,799
Communication services. ........................... ..............
..................... 1,467,054
1,203,580
Furnitureandequipment ................................................................ 1,626,857 916,538
Booksandlibrary services ................................................................ 401,058 373,757
Printing .28...... ................................................................ 7726,309 609,830
Insurance ....... .. ........................................ 4 185,12..........................1
185,102
Otherexpenses....... .......................... ....... ....................... 40,099 32,707
TOTAL.. ............................................................. 61,252,738
$ $ 45,525,547
Deduct-Management
Feechargedto InternationalDevelopment
Association
..................... 15,800,000 4,200,000
TOTALADMINISTRATIVE
EXPENSES
................................................. . $ 45,452,738 $ 41,325,547
Intereston borrowings..................... ............ . ......................... 242,372,908 194,471,597
Bondissuanceand otherfinancialexpenses ..................................... ............ 3,549,270 2,873,150
Discounton saleof loans.............. ..................... ............................. 41,168 171,305
GROSS EXPENSES .......... ........ $291,416,084 $238,841,599
Net Incom e-Note D .................... ............................................. $212,869,275 $171,437,755

(L) The amount previously reported as "Services to member countries" for the fiscal year ended June 30, 1969 has been included in "Administrative expenses"
for that fiscal year.

86
Statementof Subscriptions
to Capital AppendixC
StockandVoting PowerIneatolBnkr
Stockand Voting
Power
International
Bankfor
~ ~~~~~~~~~~~~Reconstruction
andDevelopment

June30,1970
Expressed
in United
StatesCurrency
(inthousands)-See
Notesto Financial
Statements,
Appendix
F
Amounts Paidin
In currency In non-
of member negotiable,
otherthan non-interest-
Subject
to call
Subscriptions United bearing, to meet VotingPower
In United States demand obligations
Percent Amount States dollars notes of Bank Number Percent
Member Shares of total (NoteE) dollars (NoteB) (Notes) (NoteF) of votes oftotal
Afghanistan ....................... 300 .13 $ 30,000 $ 300 $ 1,200 $ 1,500 $ 27,000 550 .21
Algeria....................... 800 .35 80,000 800 72 7,128 72,000 1,050 .40
Argentina....................... 3,733 1.61 373,300 16,772 1,000 19,558 335,970 3,983 1.53
Australia ................ ... 5,330 2.30 533,000 5,330 47,970 - 479,700 5,580 2.15
Austria....................... 1,867 .81 186,700 1,867 16,803 - 168,030 2,117 .81
Belgium....................... 4,500 1.94 450,000 4,500 40,500 - 405,000 4,750 1.83
Bolivia............ ........... 210 .09 21,000 210 13 1,877 18,900 460 .18
Botswana ....................... 32 .01 3,200 32 8 280 2,880 282 .11
Brazil....................... 3,733 1.61 373,300 3,733 33,597 - 335,970 3,983 1.53
Burma....................... 507 .22 50,700 507 1,207 3,356 45,630 757 .29
Burundi....................... 150 .07 15,000 150 15 1,335 13,500 400 .15
Cameroon (1) . , ...................... 200 .09 20,000 200 29 1,573 18,000 450 .17
Canada ....................... 7,920 3.42 792,000 7,920 71,280 - 712,800 8,170 3.14
CentralAfricanRepublic(0) ......... 100 .04 10,000 100 38 765 9,000 350 .14
Ceylon ....................... 827 .36 82,700 827 908 6,535 74,430 1,077 .41
Chad....................... 100 .04 10,000 100 24 876 9,000 350 .14
Chile................ ....... 933 .40 93,300 933 8,397 - 83,970 1,183 .46
China....................... 7,500 3.24 750,000 7,500 7,043 60,457 675,000 7,750 2.98
Colombia ....................... 933 .40 93,300 9,330 - - 83,970 1,183 .46
Congo,DemocraticRepublicof ...... 960 .41 96,000 960 694 7,946 86,400 1,210 .47
Congo,People'sRepublicof (" ....... 100 .04 10,000 100 27 775 9,000 350 .14
CostaRica....................... 107 .05 10,700 467 603 - 9,630 357 .14
Cyprus ... .................... 213 .09 21,300 213 21 1,896 19,170 463 .18
Dahomey (1). . .. .............. 100 .04 10,000 100 31 771 9,000 350 .14
Denmark ....................... 1,733 .75 173,300 1,733 15,597 - 155,970 1,983 .76
DominicanRepublic ................ 133 .06 13,300 133 483 714 11,970 383 .15
Ecuador ....................... 171 .07 17,100 1,710 - - 15,390 421 .16
El Salvador ....................... 107 .05 10,700 287 783 - 9,630 357 .14
Ethiopia................... .... 100 .04 10,000 1,000 - - 9,000 350 .14
Finland ....................... 1,333 .58 133,300 1,333 11,997 - 119,970 1,583 .61
France....................... 10,500 4.53 1,050,00010,500 94,500 - 945,000 10,750 4.14
Gabon ....................... 100 .04 10,000 100 32 868 9,000 350 .14
Gambia,The....................... 53 .02 5,300 53 6 471 4,770 303 .12
Germany ............. .......... 12,800 5.53 1,280,000 12,800 115,200 - 1,152,000 13,050 5.02
Ghana ....................... 734 .32 73,400 734 1,892 4,714 66,060 984 .38
Greece ....................... 667 .29 66,700 667 6,003 - 60,030 917 .35
Guatemala ....................... 107 .05 10,700 467 603 - 9,630 357 .14
Guinea ....................... 200 .09 20,000 200 1,800 - 18,000 450 .17
Guyana ....................... 160 .07 16,000 160 15 1,425 14,400 410 .16
Haiti .. ..................... 150 .07 15,000 150 41 1,309 13,500 400 .15
Honduras ....................... 80 .03 8,000 620 - 180 7,200 330 .13
Iceland............. .......... 150 .07 15,000 1,500 - - 13,500 400 .15
India....................... 8,000 3.45 800,000 8,000 24,951 47,049 720,000 8,250 3.17
Indonesia ....................... 2,200 .95 220,000 2,200 698 19,102 198,000 2,450 .94
Iran. ....................... 1,286 .55 128,600 1,286 8,100 3,474 115,740 1,536 .59
Iraq. ....................... 640 .28 64,000 640 1,350 4,410 57,600 890 .34
Ireland........................ 853 .37 85,300 853 6,385 1,292 76,770 1,103 .42
Israel .. , 959 .41 95,900 3,038 1,843 4,709 86,310 1,209 .47
Italy. ....................... 6,660 2.88 666,000 6,660 59,940 - 599,400 6,910 2.66
Ivory Coast(1). .. .... ... 200 .09 20,000 200 1,512 216 18,000 450 .17
Jamaica ................ ....... 400 .17 40,000 2,045 22 1,933 36,000 650 .25
Japan ....................... 7,726 3.34 772,600 7,726 69,534 - 695,340 7,976 3.07
Jordan ....................... 163 .07 16,300 163 61 1,406 14,670 413 .16
Kenya
- ...................... 333 .14 33,300 333 1,471 1,526 29,970 583 .22
Korea ....................... 533 .23 53,300 533 1,130 3,667 47,970 783 .30
Kuwait .. , 667 .29 66,700 667 6,003 - 60,030 917 .35
Laos.................... ... 100 .04 10,000 100 900 - 9,000 350 .14
Lebanon ....................... 90 .04 9,000 900 - - 8,100 340 .13
Lesotho .. ..................... 32 .01 3,200 32 3 285 2,880 282 .11
Liberia..................... .. 213 .09 21,300 213 13 1,904 19,170 463 .18
(cootinu
ed)

87
Statement of Subscriptions to Capital Appendix C
International
Bankfor
Stock and Voting Power (continued) Reconstruction
andDevelopment

June 30, 1970

Expressedin United States Currency (in thousands)-See Notes to Financial Statements, Appendix F

Amounts Paid in
In currency In non-
of member neigot
iable,
other than non-interest- Subject to call
Subscriptions United bearing, to meet Voting Power
In United States demand obligations
Percent Amount States dollars notes of Bank Number Percent
Member Shares of total (Note E) dollars (Note B) (Note B) (Note F) of votes of total

Libya . ............... 200 .09 $ 20,000 $ 2,000 $ - $ - $ 18,000 450 .17

Luxembourg. ... 200 .09 20,000 200 1,800 - 18,000 450 .17
MalagasyRepublic . ......... 200 .09 20,000 200 37 1,763 18,000 450 .17
Malawi . .... ......... 150 .07 15,000 150 36 1,314 13,500 400 .15
Malaysia . ............... 1,333 .58 133,300 1,333 11,997 - 119,970 1,583 .61
Mali . ...... ......... 173 .07 17,300 173 1,557 - 15,570 423 .16
Mauritania ....................... 100 .04 10,000 100 26 874 9,000 350 .14
Mauritius................ . .. . 171 .07 17,100 171 16 1,523 15,390 421 .16
Mexico.... ................... 2,080 .90 208,000 2,080 18,720 - 187,200 2,330 .90
Morocco....................... 960 .41 96,000 960 99 8,541 86,400 1,210 .47
Nepal....................... 100 .04 10,000 100 9 891 9,000 350 .14
Netherlands ....................... 5,500 2.37 550,000 5,500 49,5C0 - 495,000 5,750 2.21
NewZealand...................... 1,667 .72 166,700 1,667 129 14,874 150,030 1,917 .74
Nicaragua ....................... 80 .03 8,000 620 180 - 7,200 330 .13
Niger0)........................ 100 .04 10,000 100 26 776 9,000 350 .14
Nigeria ....................... 1,067 .46 106,700 1,067 256 9,347 96,030 1,317 .51
Norway ....................... 1,600 .69 160,000 1,600 14,400 - 144,000 1,850 .71
Pakistan ....................... 2,000 .86 200,000 2,000 2,049 15,951 180,000 2,250 .87
Panama ....................... 90 .04 9,000 126 - 774 8,100 340 .13
Paraguay ....................... 60 .03 6,000 60 540 - 5,400 310 .12
Peru ....................... 635 .27 63,500 3,785 44 2,521 57,150 885 .34
Philippines....................... 1,173 .51 117,300 3,873 6,300 1,557 105,570 1,423 .55
Portugal....................... 800 .35 80,000 800 7,200 - 72,000 1,050 .40
Rwanda ....................... 150 .07 15,000 150 1,350 - 13,500 400 .15
SaudiArabia ...................... 960 .41 96,000 960 22 8,618 86,400 1,210 .47
Senegal(')....................... 333 .14 33,300 333 37 2,630 29,970 583 .22
SierraLeone....................... 150 .07 15,000 150 20 1,330 13,500 400 .15
Singapore ....................... 320 .14 32,000 320 2,304 576 28,800 570 .22
Somalia................- 150 .07 15,000 150 14 1,336 13,500 400 .15
SouthAfrica....................... 2,133 .92 213,300 2,133 19,197 - 191,970 2,383 .92
SouthernYemen . . ...... 235 .10 23,500 235 22 2,093 21,150 485 .19
Spain ....................... 2,667 1.15 266,700 2,667 22,803 1,200 240,030 2,917 1.12
Sudan....................... 600 .26 60,000 600 1,800 3,600 54,000 850 .33
Swaziland . .... ..... 64 .03 6,400 64 6 570 5,760 314 .12
Sweden . .... .......... 2,400 1.04 240,000 2,400 21,600 - 216,000 2,650 1.02
SyrianArab Republic . ........ 400 .17 40,000 400 44 3,556 36,000 650 .25
Tanzania . .............. 333 .14 33,300 333 78 2,919 29,970 583 .22
Thailand . ............... 1,013 .44 101,300 7,652 82 2,396 91,170 1,263 .49
Togo('). ...................... 150 .07 15,000 150 35 1,168 13,500 400 .15
Trinidadand Tobago . ........ 467 .20 46,700 1,709 24 2,937 42,030 717 .28
Tunisia....................... 373 .16 37,300 373 74 3,283 33,570 623 .24
Turkey. ......... 1,150 .50 115,000 1,150 271 10,079 103,500 1,400 .54
Uganda....................... 333 .14 33,300 333 78 2,919 29,970 583 .22
UnitedArabRepublic . .. ...... 1,421 .61 142,100 1,421 145 12,644 127,890 1,671 .64
UnitedKingdom('l . ........... 26,000 11.23 2,600,000 26,000 232,270 - 2,340,000 26,250 10.10
UnitedStates...................... 63,500 27.42 6,350,000 635,000 - - 5,715,000 63,750 24.53
UpperVolta....................... 100 .04 10,000 100 26 874 9,000 350 .14
Uruguay) .............. -..... 280 .12 28,000 1,981 63 756 25,200 530 .20
Venezuela... ........ .. .. 1,867 .81 186,700 18,670 - - 168,030 2,117 .81
Viet-Nam ....................... 427 .18 42,700 427 3,843 - 38,430 677 .26
Yemen Arab Republic . . 85 .04 8,500 85 765 - 7,650 335 .13
Yugoslavia....................... 1,067 .46 106,700 9,373 1,297 - 96,030 1,317 .51
Zambia ....................... 533 .23 53,300 533 48 4,749 47,970 783 .30
TOTALS
.............. 231,588 100.00 $23,158,800$877,204 $1,087,587 $348,221$20,842,920 259,838 100.00

Amounts aggregating the equivalent of $2,867,635receivable as a result of revaluation of these currencies, are not included in the "Amounts Paid in" columns.
(l)
The equivalent of $131,000has been receivedfrom Uruguay on account of an increasein subscriptionwhichis in processof completion.
(2)
General: $640,000from EquatorialGuineaand $221,270from Cambodiahave beenreceivedonaccountof theircapitalsubscriptions pendingadmissionto membership.

88
SummaryStatementof Loans Appendix D
International
Bankfor
Reconstruction
andDevelopment
June30, 1970
Expresnedin UnitedStatenCurrency-See
Notesto Financial Appendix
Statenments, F

Elffectiee
loans heldby Bank
Membersin whose
1 territories
foans Disburned Undisburned Lnannnotyet
havebeenmade() portion portisn(2) Total(') effective(C)
Algeia. ......... ..... ...... $ 12,715,000 $ -.- 12,7
15,000 $
Argentina ................. . 168,244,616 161,279,384 329,524,000
Australia.................. . 138,139,841 6,369,955 144,509,796 4,500,000
Austria .................. . 48,786,331 48,786,331
Belgium ............. . ..... 25,971,871 -25,971,871

Bolivia................... . - - - 23,250,000
Brazil................... . 225,816,722 247,333,826 473,150,548 205,000,000
Burma................ ..... 15,359,567 - 15,359,567
Cameroon....... .
.... ..... 2,124,898 17,775,102 19,900,000 17,200,000
Ceylon................... . 26,234,038 35,824,610 62,058,648 14,500,000
Chile................... . 97,693,370 49,990,751 147,684,121 19,300,000
China ................... . 65,130,665 94,175,151 159,305,816 71,500,000
Colombia ................. . 322,916,834 142,940,733 465,857,567 127,600,000
Congo, People's Republic of........ . .. 30,000,000 - 30,000,000
CostaRica................. . 33,944,843 34,998,392 68,943,235
Cyprus.................. . 14,749,538 16,723,674 31,473,212
Denmark.................. . 33,294,800 - 33,294,800
Dominican Republic............ . . 1,670,575 23,329,425 25,000,000
Ecuador .................. . 33,714,837 7,481,163 41,196,000
ElSalvador................. . 24,808,591 7,381,049 32,189,640
Ethiopia.................. . 44,140,739 34,814,601 78,955,340
Finland .................. 118,178,705 11,680,750 129,859,455
France ................... 10,614,414 - 10,614,414
Gabon ....... ........... 12,421,015 6,228,985 18,650,000
Ghana ...... .......... 43,475,596 5,982,404 49,458,000
Greece .................... 7,951,866 4,378,134 12,330,000 20,000,000
Guatemala ....... ......... 11,424,050 17,299,950 28,724,000
Guinea .................... 12,424,827 52,075,173 64,500,000
Guyana .................. 85,901 7,714,099 7,800,000
Haiti .... .....
..... ... ... 509,000 - 509,000
Honduras ................ 25,183,577 11,935,423 37,119,000 5,500,000
Iceland .................. 19,723,125 221,884 19,945,009
India... ...... .... ...... 491,315,066 122,144,686 613,459,752 40,000,000
Iran................... 151,886,309 120,311,145 272,197,454 42,000,000
Iraq.................... 11,372,624 7,527,376 18,900,000
Ireland .................. 1,151,950 12,422,351 13,574,301
Israel................... 84,584,517 4,278,292 88,862,809 25,000,000
Italy.................... 142,854,896 -- 142,854,896
IvoryCoast ................. 2,367,531 20,532,469 22,900,000 18,500,000
Jamaica .................. 27,018,698 13,625,538 40,644,236 2,000,000
Japan. .................. 470,775,155 - 470,775,155
Kenya ................... 5
259,783 23,240,217 23,500,000 2,600,000
Kenya, Tanzania andUganda( ) ......... 44,787,590 41,212,410 86,000,000 52,800,000
Korea ................... 4,183,259 65,816,741 70,000,000 40,000,000
Lebanon .................- 18,136,084 - 18,136,084
Liberia .................. 5,936,136 9,013,675 14,949,811
Malagasy Republic ............. 983,565 10,116,435 11,100,000
Malaysia.......... . ... ... 132,555,551 73,591,878 206,147,429 21,500,000
Mexico .................- 532,185,161 230,800,798 762,985,959 21,800,000
Morocco .... ............. 50,324,583 80,826,678 131,151,261
NewZealand ................ 84,092,104 1,967,587 86,059,691
Nicaragua ................. 22,439,559 15,488,441 37,928,000
Nigeria ........ .. _...... 143,949,253 25,295,747 169,245,000 35,600,000
Norway .................. 82,181,115 .- 82,181,115
Pakistan .................. 310,699,849 156,335,831 467,035,680 19,200,000
Panama .................. 7,616,000 - 7,616,000 42,000,000
Paraguay .. ............... 5,848,735 5,310,824 11,159,559 6,000,000
Peru................... 119,275,783 34,768,618 154,044,401
Philippines .......... ...... 112,611,232 78,265,993 190,877,225
Portugal ................. 51,805,029 2,144,722 53,949,751
Senegal .................. 1,574,962 5,490,377 7,065,339
SierraLeone ................ 4,222,389 2,697,611 6,920,000
Singapore ............. ....
. 39,298,620 49,803,380 89,102,000
SouthAfrica................. 5,989,208 - 5,989,208
Spain ................... 148,712,758 52,918,844 201,631,602 12,000,000
(continued)

89
Summary Statement of Loans (continued) Appendix D
InternationalBankfor
and Development
Reconstruction

June 30, 1970

Expressedin United States Currency-See Notes to Financial Statements, Appendix F

Effective loans held by Bank

Members in whose territories leans Disbursed Undisbursed

2
Loans not yet
have been rmade() portion portion( ) Total(') effective(C'

Sudan... ...................... $ 87,904,832 $ 23,637,168 $ 111,542,000 $ -

Tanzania . . . 3,118,518 8,991,482 12,110,000
Thailand....................... 151,058,834 96,036,746 247,095,580
Trinidadand Tobago ............. . ...... 4,767,262 19,967,738 24,735,000
Tunisia.......... ....... ...... 20,847,706 53,175,329 74,023,035
Turkey ............................ 41,847,177 58,188,038 100,035,215
UnitedArabRepublic . .............. ... 24,750,000 - 24,750,000
UnitedKingdom ............. ............. 92,121,037 201,127 92,322,164
Uruguay.... . ....
....................... 51,642,330 2,359,670 54,002,000 6,300,000
Venezuela . ...................... ...... 212,106,968 62,611,024 274,717,992
Yugoslavia .... ....... . ............. 223,165,655 118,431,284 341,596,939 80,000,000
Zambia . . . 22,405,923 35,894,070 58,299,993 5,500,000
1 . . $981,150,000
Sub-Totalmembers() .... $ $....
5,876,181,048 $2,743,376,958 $8,619,558,006
InternationalFinanceCorporation ....... 17,500,000 182,500,000 200,000,000
TOTALS . . $5,893,681,048 $2,925,876,958 $8,819,558,006 $981,150,000
Add: Exchange adjustments ... ............ 69,362,203 69,362,203
$5,963,043,251 $8,888,920,209

Summary of Currencies Repayable on Effective (1) Loansare made(a) to the memberor (b) to a politicalsub-
Loans Held by Bank divisionor a publicor a privateenterprisein the territoriesof the
memberwith the member'sguarantee.A loanhasalsobeenmade
Currency Amount to InternationalFinanceCorporation.
Argentinepesos........................ $ 995,815 (2) Thisdoesnot include$12,825,124 of effectiveloanswhichthe
Australiandollars. . ......................... 80,195,354 Bankhasagreedto sell. Of the undisbursedbalance,the Bankhas
Austrianschillings .. . .................... 25,498,052 enteredinto irrevocablecommitments to disburse$46,006,409.
Belgianfrancs. . .......................... 75,814,041 (3) Originalprincipalamountof loanssigned $14,597,127,893
Burmesekyats . . . ..... 1,561,404 Deduct:
Canadian dollars. .............. ........... 167,864,569 (a) Cancellations,terminations
Ceylonrupees........ ...................... 295,105 and refundings.... ..... $ 322,478,376
Danishkroner . . . . 22,666,672 (b) Principalrepaymentsto
Deutschemark.............................. 1,155,613,256 the Bank.............. 2,126,054,344
Finnishmarkkaa. ........... 16,073,339 (c) Loanssold or agreedto be
Frenchfrancs.... ........ 145,668,464 sold of which$12,825,124
Ghananew cedis......... .. .......... 3,653,437 hasnotyet beendisbursed 2,347,887,167
..............
Indian rupees ........... 45,188,684 (d) Loansnot yet effective 981,150,000 5,777,569,887
Iranian rials....... ... ...... ... ....... ...... 12,998,559
Iraqi dinars................ .......... 2,108,682 $ 8,819,558,006
Irish pounds....... ,.,.,.,.., ........ 10,111,857 Add: Exchange adjustments.... 69,362,203
Israel pounds....... ............. ,3,076,707 Effectiveloansheldby Bank... $ 8,888,920,209
Italianlire ..... .......... ............... 114,125,452
Japanese yen........................... 317,996,306 (4) Agreements providingfor theseloanshavebeensigned,but
Kuwaitidinars........... 4.......1..........
47,408,386 the loansdonot becomeeffectiveanddisbursementsthereunderdo
Luxembourg francs......................... 3,104,005 not start until the borrowersand guarantors,if any,take certain
Malaysiandollars.. 15,692,801 actionand furnish certaindocumentsto the Bank.The Bankhas
Mexicanpesos ........... ........... 26,887,217 agreedto sell $1,875,000 of loansnot yet effectiveand thus the
Netherlands guilders........... .......... 121,687,780 total of effectiveand non-effectiveloanssold or agreedto be sold
Norwegiankroner......................... 22,776,808 is theequivalentof $2,349,762,167.
Portugueseescudos.. ............. 7,920,330 (5) Loansharedby members shown.
Poundssterling.2.................. 232,224,980
Singaporedollars... .............. 2,370,315
SouthAfricanrand......... ................ 33,998,475
Spanishpesetas .. ....... ..... 30,077,188
Sudanese pounds ........ ....... ......... 2,854,577
Swedishkronor.......... ........... . 45,249,236
Swissfrancs....................-......... 201,327,421
NewTaiwandollar..................... 6,996,734
UnitedStatesdollars........................ 2.891,599,040
Disbursed portionof effectiveloansheld by Bank $5,893,681,048
Add: Exchange adjustments .................. 69,362,203
Add: Undisbursedportionof effectiveloans $5,963,043,251
held by Bank...... , 2,925,876,958
Effectiveloansheldby Bank........... ...... $8,888,920,209

90
SummaryStatementof Funded Debt Appendix E
InternationalBank for
Reconstructionand Development

June30, 1970
in UnitedStatesCurrency-SeeNotesto FinancialStatements,AppendixF
Expressed
Weighted
average Principal
Payablein interestrates Duedates outstanding(M
Canadiandollars ........ ...... 5.95% 1990-1993 $ 72,913,198
Deutschemark"' "I ...... ..... 6.28% 1970-1985 1,086,801,366
Italian lire .................... 5.00% 1976 24,000,000
Japaneseyen ................. 7.14% 1973-1975 200,000,000
Kuwaiti dinars ............ ... 6.50% 1988 42,000,000
Netherlandsguilders ........ .. 5.03% 1975-1988 39,598,067
Poundssterling ................ 4.41% 1971-1982 31,024,030
Swedishkronor .............. . 6.00% 1992 14,497,768
Swissfrancs....................... 4.40% 1970-1985 180,810,548
UnitedStatesdollars'"'(i . ..... 5.52%0 . 1970-1994 2,876,660,000
TOTAL $4,568,304,977

(l) Thefollowingtable showsthe aggregateprincipalamountof maturities,sinking fund requirements,

and in the case of certain Canadianissues,non-cumulativepurchasefund requirementseachyear for
the fiveyearsfollowing the date of this statement:

Period Amount
July 1, 1970 to June 30, 1971.$ 509,684,670
July 1, 1971 to June30, 1972 . .608,557,004
July 1, 1972to June30, 1973 . .353,475,239
July 1, 1973to June30, 1974 . .366,088,409
July 1, 1974to June30, 1975 269,094,008
TOTAL $2,106,899,330

(0) The Bankhas arrangedto refinanceat maturity, August 1, 1970, notesand bondstotaling $30.0
million and DM 130.0 million (USequivalent$35.5 million) by issuingnewnotestotaling DM 239.8
million (US equivalent$65.5 million) to matureFebruary1, 1975.
(a) In July 1970 the Bankannouncedthat it intendsto offer during the latter part of that month in
the United States$200 million principalamount of 25-year bondsand that it has signed an agree-
ment with a syndicateof Germanbanksfor a public issueof DM 200 million (US equivalent$54.6
million) principalamountof 10-yearbonds.
(0) The Bankhad enteredinto agreementsto sell additional bondstotaling $43,525,000of one out-
standing issue. In accordancewith these agreements,delivery of such bonds was made against
paymentthereforon July 8, 1970.

91
Notes to FinancialStatements Appendix F
InternationalBankfor
Reconstructionand Development
June30, 1970

Note A the transactionsat anytime, with immediateeffect as to dollars

Amounts in currenciesother than United States dollars have then held by the Bank, and, as to dollars loaned,upon repay-
beentranslatedinto UnitedStates dollars: ment of the loans. Suchdollars while held by the Bank or on
(i) In the casesof 81 members,at the par valuesas specified loan are not subject to the provisionsof Article II, Section9.
in the "Scheduleof ParValues,"publishedby the International Suchdollars held by the Bankor repayableon loansare shown
MonetaryFund; in these financial statements under "United States dollars"
(ii) In the casesof the remaining32 members(Algeria,Argen- and,whererelevant,as "unrestricted."
tina, Bolivia,Brazil,Cameroon,CentralAfrican Republic,Chad, Note C
Chile, China, Colombia,DemocraticRepublicof Congo,Peo- Amountsof commissionsset aside pursuantto Article IV, Sec-
ple's Republicof Congo,Dahomey,Gabon,Guinea,Indonesia, tion 6, as a SpecialReserveto be held in liquid form andto be
IvoryCoast,Korea,Laos,MalagasyRepublic,Mali, Mauritania, used only for the purposeof meetingliabilities of the Bank on
Mauritius, Niger, Paraguay,Peru, Senegal,SouthernYemen, its borrowingsand guarantees.
Togo,UpperVolta, Viet-Namand YemenArab Republic)at the Note D
rates used by such membersin making paymentsof capital Of the $212,869,275net incomeearnedin the fiscal yearended
subscriptionsto the Bank;and June 30, 1970, in July the Presidentof the Bank proposedto
(iii) In the caseof Swissfrancs,non-membercurrency,at the the ExecutiveDirectors that they approve the allocation of
rate of 4.2975 Swissfrancsto 1 UnitedStates dollar. $112,869,275to the SupplementalReserveAgainst Losseson
See alsoNlote B. Loansand Guaranteesand from CurrencyDevaluationsandthat
No representationis madethat any currencyheld by the Bank they recommendto the Board of Governorsthat an amount
is convertibleinto anyother currencyat any rate or rates. equal to the balanceof $100,000,000be transferredby wayof
Note B grant to the InternationalDevelopment Association.
Thesecurrenciesof the severalmembers,and the notes issued Of the $171,437,755net incomeearnedin the fiscal year ended
by them in substitutionfor anypart of such currenciesas per- June30, 1969,the Bankin July 1969,allocated$71,437,755to
mibted under the provison ns of Article V, Section 12 of the the SupplementalReserveAgainstLosseson Loansand Guaran-
Articlesof Agreementof the Bank,are derivedfrom the portion teesand from CurrencyDevaluations and in October1969trans-
of the subscriptionsto the capital stock of the Bankewhich is ferredthe balanceof $100,000,000by wayof grant to the Inter-
payable in the currenciesof the respectivemembers(such nabonal Development Association.
portion being hereinafter called restrictedcurrency).Such re- Consistentwith past practice,the SupplementalReserveAgainst
stricted currenciesmay be loanedby the Bank,and funds re. Losseson Loansand Guaranteesand from CurrencyDevalua-
ceivedby the Bank on accountof principalof loans made by tions has beenchargedand credited during the current fiscal
the Bank out of such restrictedcurrenciesmay be exchanged year with the undermentionedamountsrepresentinga net gain
for other currenciesor reloaned,only with the approvalin each to the Bank as a result of the revaluationof the amountsof
caseof the memberwhoserestrictedcurrencyis involved;pro- earningsheld by the Bankat the respectivedates of revaluation
vided, however,that, if necessary,after the Bank's subscribed in the currenciesindicated:
capital is entirely called,such restrictedcurrenciesmay, with- Gaihi(loss)on Dateof
out restriction by the memberswhosecurrenciesare offered, Currency resaluation revaluatiso
be usedor exchangedfor the currenciesrequiredto meetcon- Frenchfrancs .......... $(5,725,902) August 1969
tractual paymentsof interest, other chargesor amortizationon Deutschemark 8,256,239 October1969
the Bank's own borrowingsor to meet the Bank's liabilities
with respectto contractualpaymentson loansguaranteedby it. Total ....... 2,530,337 _$
UnderArticle II, Section 9, each memberis required, if the Note E
par value of its currencyis reducedor if the foreign exchange In terms of UnitedStatesdollars of the weight and finenessin
value of its currencydepreciatesto a significant extent in its effect on July1, 1944.
territories, to maintain the value of the Bank'sholdingsof its Note F
restrictedcurrency,including the principalamountof any notes Subjectto call by the Bankonly whenrequiredto meetthe obli-
substituted therefor,and the Bankis required,if the par value gations of the Bank created by borrowingor by guaranteeing
of a member'scurrencyis increased,to return to the member loans.As to $18,527,040,000 the restrictionon calls is imposed
the increasein the value of such restrictedcurrencyheld by by the Articles of Agreement;as to $2,315,880,000by resolu-
the Bank.Pursuantto the above provisions,the equivalent of tions of the Boardof Governors.
$2,867,635is receivablefrom 9 memberson accountof re- General
strictedcurrenciesheld by the Bank. The ExecutiveDirectorshave recommended that the Board of
To the extent such restrictedcurrenciesare out on loan, the Governorsadopt a resolution which would authorize certain
Bankand the membersare obligatedto make paymentsunder membersof the Bank to make additionalsubscriptionsto the
Article II, Section 9 only when such restrictedcurrenciesare capital of the Bank. In order to providethe authorizedcapital
recoveredby the Bank. necessaryfor suchincreases,future increasesin members'sub-
The equivalentof $41,480,303would be receivablefrom three scriptionsand subscriptionsfor new members,the Executive
membersif such currencieshad been recoveredat June 30, Directorshavealso recommended that the Boardof Governors
1970, pursuantto the above-mentionedprovisions. adopt a resolutionwherebythe authorizedcapital of the Bank
Somemembershave convertedpart or all of the Bank's hold- wouldbe increasedby $3,000,000,000.The Boardof Governors
ings of their restrictedcurrencyinto UnitedStatesdollars to be is now voting on these resolutions.As a result of these actions,
used and reusedas UnitedStates dollars in the Bank's opera- the subscribedcapital of the Bank may be increasedby an
tions, subjectto the right of the Bankor the memberto reverse amount in excessof $2,000,000,000.

92
Opinion of FinancialStatements
Independent Auditor Covered by the
Foregoing Opinion
1707L STREET,N.W.
WASHINGTON,D.C.20036
JULY22, 1970

To
INTERNATIONAL
BANKFOR
RECONSTRUCTION
ANDDEVELOPMENT
WASHINGTON,
D.C.

In our opinion,the accompanying financial statements(Appen- BalanceSheet...................... AppendixA (page84)

dix A through AppendixF) presentfairly, in terms of United Statementof Incomeand Expenses. AppendixB (page86)
States currency,the financial position of InternationalBankfor
Reconstructionand Developmentat June 30, 1970, and the Statementof Subscriptions
to Capital
results of its operationsfor the year then ended,in conformity Stockand Voting Power.......... AppendixC (page87)
with generallyacceptedaccountingprinciplesappliedon a basis
consistentwith that of the precedingyear.Our examinationof SummaryStatementof Loans.Appendix D (page89)
these statementswas made in accordancewith generallyac- SummaryStatementof FundedDebt .... AppendixE (page91)
ceptedauditing standards,and accordinglyincludedsuch tests
of the accountingrecords and such other auditingprocedures Notesto FinancialStatements.Appendix F (page92)
as we considerednecessary in the circumstances.

PRICEWATERHOUSE
& CO.

93
Statement of Loans Signed
During the Fiscal Year 1969/70
Expressedin United States Currency

GUARANTOR Date of Loan Interest Principal

Purposeand Borrowen Agreement Maturities rate amount

Argentina(Guarantor)
Power-Servicios Electricos delGranBuenos Aires,S.A..... November
........... 14,1969 1973/1989 7% $ 60,000,000
Australia(Guarantor)
Roads-Administration of the Territoryof Papua andNewGuinea ...... June24,1970 1974/1994 7% 4,500,000
Bolivia(Guarantor)
GasPipeline-Compania Yacibol Bogoc Transportadores ...... ........ July22,1969 1971/1990 61/2% 23,250,000
Brazil
Roads
....................................................... May25,1970 1974/1995 7% 100,000,000
Brazil (Guarantor)
Power-Central Eletrica deFurnas, S.A.............................. May25,1970 1977/2000 7% 80,000,000
Industry-Banco doNordeste doBrasil,S.A......................... February
16,1970 1973/1987 7% 25,000,000
Cameroon
Roads.................... ......................... ............ March27,1970 1980/2000 7% 12,000,000
Cameroon(Guarantor)
Railways-Regie desChemins deFerdu Cameroun ................... June9,1970 1975/1995 7% 5,200,000
Ceylon
Agriculture andPower ............................................. January
30,1970 1976/2000 7% 14,500,000
Ceylon(Guarantor)
Industry-Development Finance Corporation of Ceylon . ........ July18,1969 1972/1987 61%2% 8,000,000
Power-Ceylon Electricity Board .................................... July28,1969 1974/1994 61/2% 21,000,000
Chile
Education .............................................. May7,1970 1980/1995 7% 7,000,000
Roads... .................................. June10,1970 1974/1995 7% 10,800,000
Chile (Guarantor)
Education-Corporaci6n deFomento delaProducci6n ................. April23,1970 1975/1995 7% 1,500,000
China
Education........ ..... ............................... June19,1970 1980/1995 7% 9,000,000
China(Guarantor)
Industry-China Development Corporation .... May16,1970 1972/1982 7% 18,000,000
Power-Taiwan Power Company .................................... May16,1970 1975/1990 7% 44,500,000
Colombia
Agriculture ..... ..................................... December
29,1969 1975/1987 7% 18,300,000
Education ................ ....................................... June4,1970 1980/2000 7% 6,500,000
Roads.......... ......................... June4,1970 1974/1995 7% 32,000,000
Colombia(Guarantor)
Power-Interconexi6n Electrica, S.A ...................... ........ June4,1970 1977/2000 7% 52,300,000
WaterSupply andSewerage-Establecimiento P6blico
Empresas Municipales de Cali................ .................... June4,1970 1974/1995 7% 18,500,000
CostaRica
Roads............. ................................ April2,1970 1976/2000 7% 15,700,000
CostaRica(Guarantor)
Power-Instituto Costarricense deElectricidad ....................... July10,1969 1973/1994 6'A% 12,000,000
Telecommunications-Instituto Costarricense deElectricidad ........... July10,1969 1973/1989 6/,% 6,500,000
Cyprus(Guarantor)
Power-Electricity Authority of Cyprus . .................. December
24,1969 1973/1990 7% 5,000,000
DominicanRepublic(Guarantor)
Industry-Falconbridge Dominicana, C.porA........................ December
10,1969 1973/1984 7% 25,000,000
Greece(Guarantor)
Industry-National Investment Bankfor Industrial
Development, S.A........................................... April15,1970 1972/1986 7% 20,000,000
Honduras
Power............................................ June24,1970 1974/1990 7% 5,500,000
India (Guarantor)
Industry-TheIndustrial CreditandInvestment
Corporation of IndiaLimited ..................................... June3,1970 1973/1987 7% 40,000,000
Iran
Roads.... .......... .............................. June29,1970 1975/1995 7% 42,000,000
Iran (Guarantor)
Agriculture-Agricultural Development Fundof Iran.................. March25,1970 1974/1984 7% 6,500,000
Israel (Guarantor)
Industry-Industrial Development Bankof IsraelLimited .............. June15,1970 1972/1984 7% 25,000,000
IvoryCoast
Education................................... ............. April27,1970 1979/1999 7% 11,000,000
Agriculture..... ..................... .................... June5,1970 1977/1985 7% 7,500,000

94
 AppendixG
InternationalBank for Reconstruction
and Development

GUARANTOR Dateof Loan Interest Principal

Purpose
and Borrower Agreement Maturities rate amount
Jamaica
FamilyPlanning ................ .. ....................... June18, 1970 1975/1990 7% $ 2,000,000
Kenya
Roads............ ..................................... October10,1969 1979/1994 7% 23,500,000
Agriculture .......................... ...................... November7,1969 1979/1994 7% 2,600,000
Kenya, Tanzania and Uganda (Guarantors)
Railways-EastAfricanRailwaysCorporation ......................... May25, 1970 1975/1995 7% 42,400,000
Ports-East AfricanHarboursCorporation ............................ August25,1969 1974/1994 61/2% 35,000,000
Telecommunications-East AfricanPostsand
Telecommunications Corporation ..................... ......... May25, 1970 1975/1995 7% 10,400,000
Korea
Railways ....................... .......................... May14,1970 1974/1995 7% 40,000,000
Liberia (Guarantor)
Power-PublicUtilitiesAuthority................................... June4,1970 1975/1990 7% 7,400,000
Malaysia
Agriculture................................................. May20, 1970 1977/1994 7% 13,000,000
Agriculture ................................................ May20, 1970 1974/1982 7% 8,500,000
Mexico (Guarantor)
Power-ComisionFederalde Electricidadand
NacionalFinanciera,S.A......................................... February27, 1970 1974/1990 7% 125,000,000
Roads-NacionalFinanciera,S.A.................................... June26, 1970 1975/1995 7% 21,800,000
Morocco
Roads.................. .............................. November13, 1969 1974/1989 7% 7,300,000
Agriculture............................................... . November13, 1969 1978/1999 7% 46,000,000
Morocco (Guarantor)
Industry-Banque Nationalepour le Developpement Economique ....... March6,1970 1972/1986 7% 15,000,000
Nigeria
Roads.............. ........................................ November6, 1969 1972/1984 7% 10,600,000
TransportRehabilitation ..... . .. .............................. June26, 1970 1974/1984 7% 25,000,000
Pakistan (Guarantor)
GasPipelines-Sui NorthernGasPipelinesLimited................... June29, 1970 1973/1991 7% 19,200,000
Panama (Guarantor)
Power-Instituto de Recursos Hidraulicosy Electrificaci6n. ... ........
March16,1970 1976/1995 7% 42,000,000
Paraguay
Roads .................. ............ ...... January9,1970 1974/1990 7% 6,000,000
Philippines
Agriculture............ ..... ..............................
. August18, 1969 1976/1994 7% 34,000,000
Philippines (Guarantor)
Industry-PhilippineNationalBank................................. July 10, 1969 1971/1986 6½2% 25,000,000
Singapore (Guarantor)
Telecommunications-Singapore TelephoneBoard .................... December19,1969 1974/1990 7% 11,000,000
Industry-The Development Bankof SingaporeLimited............... February25, 1970 1971/1986 7% 5,000,000
Spain
Agriculture ................. ............................... July 17, 1969 1974/1986 61/2% 25,000,000
Education ............... ............................ June 30, 1970 1975/1990 7% 12,000,000
Thailand (Guarantor)
Power-ElectricityGeneratingAuthorityof Thailand. ............ ...... February10,1970 1975/1990 7% 46,500,000
Tunisia (Guarantor)
Industry-SocieteNationaled'lInvestissement ........................ December24, 1969 1971/1987 7% 10,000,000
Uruguay
Agriculture................... ............................. June 30, 1970 1974/1982 7% 6,300,000
Yugoslavia
Roads ................................................ May28, 1970 1975/1995 7% 40,000,000
Yugoslavia (Guarantor)
Industry-YugoslavInvestmentBank............................... January30, 1970 1972/1984 7% 18,500,000
Telecommunications-Yugoslav InvestmentBank..................... February20, 1970 1975/1990 7% 40,000,000
Zambia
Education ................................................. November20, 1969 1980/1995 7% 5,300,000
Agriculture................................................ June5,1970 1976/1994 7% 5,500,000
$1,580,350,000
International Finance Corporation ........................... December23, 1969 1973/1989 7% 100,000,000(°
TOTAL.$1,680,350,000
(This loanincorporates
and replacesa $100millionloanmadeavailableto IFCin 1966intoa singleloanof $200million.

95
a

a
IDA Appendices

Page
A Statementof Condition......................... 98
B Statementof IncomeandExpenses .... .... 99
C Statementof Holdings
of Currencies andObligations . .. 100
D Summary Statement of Development Credits .102
E Statementof Subscriptions,
VotingPowerand
Supplementary Resources .103
F Notesto FinancialStatements .105

OPINION AUDITOR
OFINDEPENDENT .106

G Statement
of Development CreditsSignedDuringthe
FiscalYear1969/70........................... 107

97
Statement of Condition Appendix A
International
Development
Association

June30, 1970
Expressedin UnitedStatesCurrency-SeeNotesto FinancialStatements,AppendixF

Assets 1970 1969

DUEFROM BANKS ANDOTHER DEPOSITORIES (SeeAppendix C)

Member
currencies
Unrestricted
....................................................... $ 34,001,536 $ 32,610,802
Subject
to restrictions-Note B............................................. 60,071,675 61,019,553
$ 94,073,211 93,630,355
Non-member
currency
(Swissfrancs) ..................................... 376,923 _

$ 94,450,134 93,630,355
INVESTMENTS
Obligations
of governments andtheirinstrumentalities (At costor
amortizedcost;faceamount $160,540,347-1970, $79,376,000-1969)........... $ 156,391,027 77,722,926
Timedeposits.............................................................. 15,251,652
Accruedinterest ....................................................... 1,352,213 514,366
172,994,892 78,237,292
RECEIVABLE ONACCOUNT OFSUBSCRIPTIONS AND
SUPPLEMENTARY RESOURCES (SeeAppendix C)
Non-negotiable,non-interest-bearing, demand obligations
Unrestricted
. ....................................................... $ 690,733,713 271,445,284
Subjectto restrictions-Note B............................................. 156,673,918 157,035,924
Amounts dueonsupplementary resources ..................................... - 20,480,962
Amountsrequiredto maintain valueof currency holdings-Note C . ........ 2,966,103 4,033,218
850,373,734 452,995,388
RECEIVABLE FROMINTERNATIONAL BANKFORRECONSTRUCTION AND
DEVELOPMENT-Note D................................................. 162,640,000 92,200,000
RECEIVABLE FROM SWISS CONFEDERATION-Note E.......................... 4,033,353 8,066,705
EFFECTIVE DEVELOPMENT CREDITS HELDBYASSOCIATION
(Includingundisbursed
balance $681,227,209-1970, $409,559,438-1969)
(SeeAppendixD)-Note F .. .................................. 2,422,677,335 2,007,786,661
ACCRUEDSERVICE CHARGE ONDEVELOPMENT CREDITS-NoteF........ ...... 4,017,333 3,661,191
OTHER
ASSETS ..................................................... .. 102,000 232,000
TOTAL
....................................................... $3,711,288,781$2,736,809,592

Liabilities, Subscriptions, Supplementary Resources,

Transfers and Accumulated Net Income
LIABILITIES
Accountspayableandotherliabilities
........................................ $ 40,114 $ 69,241
Undisbursedbalance
of effectivedevelopment credits(SeeAppendix D).......... 681,227,209 409,559,438
LoanfromSwissConfederation
(Includingproceedsnot yet received $4,033,353-1970, $8,066,705-1969) ...... 12,100,058 12,100,058
SUBSCRIPTIONS (SeeAppendix E)-NoteG........................ ......... 1,014,262,000 1,012,502,000
SUPPLEMENTARY RESOURCES (SeeAppendix E)-NoteG....................... $1,950,190,000 1,053,750,000
Lessportion
for whichpayment is notyetdue-NoteH . .............. 370,240,000 68,240,000
1,579,950,000 985,510,000
PAYMENTS ONACCOUNT OFPENDING SUBSCRIPTIONS
ANDSUPPLEMENTARY RESOURCES ........................................ 102,000 232,000
TRANSFERS FROMINTERNATIONAL BANKFORRECONSTRUCTION AND
DEVELOPMENT-Note D................ ............................ 385,000,000 285,000,000
ACCUMULATED NETINCOME
At beginning
of fiscalyear-July1........................................... $ 31,836,855 21,388,987
Add-Gain on currencyrevaluation-NoteI ..... ............ 66,928 _

$ 31,903,783 21,388,987
FiscalyearendedJune30 (SeeAppendix
B) ................. 6,703,617 10,447,868
38,607,400 31,836,855
TOTAL .......... ......................... .................... $3,711,288,781$2,736,809,592

98
Statement of Income and Expenses Appendix B
International
Development
Association

Forthe FiscalYearsEndedJune30, 1970andJune30, 1969

Expressed in UnitedStatesCurrency-SeeNotesto FinancialStatements,AppendixF

July1-June30
1969/70 1968/69
Income
Income
frominvestments ............................... $ 9,987,030 $ 3,772,571
Income
fromdevelopment credits ........................ 12,490,873 10,821,384
GROSSINCOME.......................... ........... $22,477,903 $14,593,955
Expenses
Management Feepaidto International
Bankfor Reconstruction andDevelopment ................ $15,800,000 $ 4,200,000
adjustments
Exchange .................................. (25,714) (53,913)
GROSS EXPENSES ................................... $15,774,286 $ 4,146,087
Net Income.............. ................... $ 6,703,617 $10,447,868

99
Statement of Holdings of Currencies
and Obligations
June30, 1970
Expressedin UnitedStatesCurrency-See
Notesto Financial
Statements,
Appendix
F

Non-negotiable,
non-interest-
bearing,
demandobligations
onaccount
of
Unitof Initial Supplementary
Member currency Currency subscriptions resources Total

Afghanistan ..... Afghani

................. . $ 606,000 $ 303,000 $ - $ 909,000
Algeria... .......................... Dinar. ..................
...- 3,627,000 - 3,627,000.
Argentina...................... Peso
............ . . . - 16,947,000 - 16,947,000
Australia
... . Dollar . . ........ 1,121,389 - 19,295,584 20,416,973
Austria
... Schilling . . . 277,117 - 6,196,492 6,473,609
Belgium... Franc............. . . 841,098 - 2,940,000 3,781,098
Bolivia.... PesoBoliviano............ . . - 954,000 - 954,000
Botswana
.... Rand....... .......... - 144,000 - 144,000
Brazil .... Cruzeiro
, . . . 16,947,000 - - 16,947,000
Burma .... Kyat . . .- 1,818,000 - 1,818,000
Burundi .... Franc .. ............. - 684,000 - 684,000
Cameroon . .... ......... Franc................... -. 807,999 .- 807,999
Canada . ....... .......... Dollar.................. 711,013 - 33,935,509 34,646,522
Central
AfricanRepublic. ............. Franc .................. - 450,000 - 450,000
Ceylon
. ....... Rupee
......... - 2,727,000 - 2,727,000
Chad....................... Franc........... - 450,000 - 450,000
Chile.......................... .. Escudo . . . 3,177,000 - - 3,177,000
China .. NewTaiwanDollar - 27,234,000 - 27,234,000
Colombia . . Peso ... 3,177,000 - - 3,177,000
Congo,Democratic Republic of .. Zaire . . . 347,904 - - 347,904
Congo,People's Republicof . . Franc
............... 400,000 - 400,000
CostaRica.. Colon 180,000 - - 180,000
Cyprus .. Pound..... ............. 684,000 - 684,000
Dahomey........... ........ ... .. Franc...... ............ - 399,999 - 399,999
Denmark..... Krone
..................... 625,127 - 16,492,453 17,117,580
DominicanRepublic . ............... Peso 360,000 - - 360,000
Ecuador. Sucre..................... 585,000 - - 585,000
El Salvador .................. Colon . . .270,000 - - 270,000
Ethiopia
... ........... ....... Dollar................... . . - 450,000 - 450,000
Finland .................. Markka . . . 1,626,063 - 249,678 1,875,741
France
...... ................. Franc
......... 3,482,371 - 73,728,122 77,210,493
Gabon
.................... ....... Franc .................. - 450,000 - 450,000
Gambia,The ....... Pound .................. - 240,300 - 240,300
Germany
....... Deutsche
Mark 2,025,464 - - 2,025,464
Ghana
....... NewCedi ................ - 2,124,000 - 2,124,000
Greece ..... ................... Drachma . . . 2,268,000 - - 2,268,000
Guatemala .............................. Quetzai 360,000 - - 360,000
Guinea........ . Franc............. ..... 909,000 - - 909,000
Guyana .................. Dollar - 729,000 - 729,000;
Haiti .................. Gourde - 684,000 - 684,000
Honduras .................. Lempira . . . 270,000 - - 270,000
India.................. .Rupee 597,676 30,657,333 - 31,255,009
Indonesia.................. Rupiah 9,990,000 - - 9,990,0oo
Iran .................. Rial - 4,086,000 - 4,086,000
Iraq.................. Dinar - 684,000 - 684,000
Ivory Coast .................. Franc - 807,999 - 807,999
Japan Yen. . . 654,531 - 51,125,556 51,780,087
Kenya .................. Shilling . . .- 1,512,000 - 1,512,000
Korea Won . . . 1,133,960 - 1,133,960
Kuwait
............................... Dinar . . .288,740 - 4,108,760 4,397,500
Laos Kip 210,000 240,000 - 450,000
Lebanon ............ .. Pound... . .............. 405,000 - - 405,000
Lesotho ................... Rand . . .- 144,000 - 144,000
Liberia .. . Dollar - . . .- 684,000 - 684,000
Libya................... .............. Pound... . . .- 909,000 - 909,000

100
 AppendixC
International
Development
Association

Non-negotiable,
non-interest-
bearing,demandobligations
on account
of
Unitof Initial Supplementary
Member currency Currency subscriptions resources Total

Malagasy Republic .......... Franc

................ .. $ 181,800 $ 727,200 $ - $ 909,000
Malawi........... Pound
.......... ........ - 684,000 - 684,000
'Malaysia.......... Dollar
.................. - 2,268,000 - 2,268,000
Mali.......... Franc............... ... 783,000 - - 783,000
Mauritania........ .. Franc.................. - 450,000 - 450,000
Mauritius . .......
. . Rupee .................. 1,799 772,201 - 774,000
Mexico.......... Peso . ............. 6,854,737 - - 6,854,737
Morocco .......... Dirham.................. - 3,177,000 - 3,177,000
Nepal.......... Rupee . ................. - 450,000 - 450,000
Netherlands .......... Guilder . ........... 882,154 - 22,326,298 23,208,452
Nicaragua .......... Cordoba . ........... 270,000 - - 270,000
Niger .......... Franc . .......... - 399,999 - 399,999
Nigeria .......... Pound
. ............. .... - 3,024,000 - 3,024,000
Norway
.......... Krone . ..... 631,893 - 1,434,999 2,066,892
Pakistan .......... Rupee
........ .......... - 9,081,000 - 9,081,000
Panama .......... Balboa .................. 3,598 - - 3,598
Paraguay......... . Guarani
........ .......... 270,000 - - 270,000
Peru .......... Sol . ........... - 1,593,000 - 1,593,000
Philippines .... Peso . . .......... 2,209,846 2,326,154 - 4,536,000
Rwanda ...... Franc . ............ 684,000 - - 684,000
SaudiArabia ...... Riyal ................. - 3,330,000 - 3,330,000
..
Senegal .. . . . Franc............ ... - 1,343,998 - 1,343,998
SierraLeone . . . ... Leone................ - 684,000 - 684,000
Somalia ...... Shilling............ _..... - 684,000 - 684,000
SouthAfrica ...... Rand.................. 1,715,786 - - 1,715,786
Spain
... .......... ................... Peseta
...... .... 4,931,350 1,556,743 - 6,488,093
Sudan .... Pound
.................. - 909,000 - 909,000
Swaziland .... Rand.... .............. - 288,000 - 288,000
Sweden ............ ... Krona
.678,676 - 5,637,902 6,316,578
SyrianArabRepublic ............ Pound .342,000 513,000 - 855,000
Tanzania ............ Shilling.................. - 1,512,000 - 1,512,000
Thailand ............ Baht........... - 2,727,000 - 2,727,000
Togo ............ ......... Franc
.................. 6 607,993 - 607,999
Tunisia........... . .......... Dinar......... ......... 1,359,000 - 1,359,000
Turkey ............ .Lira........... -............ 5,220,000 - 5,220,000
Uganda .. Shilling .................. - 1,512,000 - 1,512,000
UnitedArabRepublic ........... Pound .... ..... .. . 4,572,000 - 4,572,000
UnitedKingdom ........... Pound .. ............... 5,009,797 - 84,261,360 89,271,157
,UnitedStates ....... Dollar.................. 13,430,316 - 369,001,000 382,431,316
UpperVolta..... .................. .. Franc . .. . - 450,000 - 450,000
Viet-Nam ........... . Piastre................ . 1,359,000 - - 1,359,000
YemenArab Republic .. ..... .... ... Rial........ ......... 387,000 - - 387,000
Zambia.. ....................... .. Kwacha ................. - 2,421,000 - 2,421,000

Totals-Member
Currencies $94,073,211$156,673,918$690,733,713$941,480,842(l)
Non-Member (Switzerland)
Currency-Unrestricted 376,923
TOTAL $941,857,765

(a) Ofthis amountthe

equivalentof isunrestricted
$724,735,249 andtheequivalent issubject
of $936,578,479 to maintenance
ofvalue-NoteC.

101
 Summary Statement of DevelopmentCredits AppendixD
International
Development
Association
June
30,1970
Expressed
in Uniited
StatesCurrency-See
Notesto Financial
Statements,
Appendix
F
Member
in whose ~ ~~~~~~~~~Effective
developmest
creditsheldby AssnciationDelomn
territoriesdevelopment Disburse
d Undisbursed creditsnotyet
3
creditshavebeenmade(') porties portion(') Total effective(
)

Afghanistan................. $ 277,313 $ 8,222,687 $ 8,500,000 $ 5,000,000

Australia:
Papua andNewGuinea ...... ..... 980,470 5,519,530 6,500,000 4,500,000
Bolivia.............. ... 16,749,122 9,050,878 25,800,000
Botswana.......3,630,563 2,469,437 6,100,000
Burundi .................. 930,736 1,969,264 2,900,000 380,000
Cameroon ................. 6,674,735 15,375,265 22,050,000 7,000,000
CentralAfricanRepublic ........... 151,513 4,048,487 4,200,000 4,300,000
Ceylon ................... 389,628 9,010,372 9,400,000 14,500,000
Chad ................... 271,740 5,628,260 5,900,000
Chile................... 18,997,755 .... 18,997,755
China .................... 13,073,716 .- 13,073,716
Colombia ............... 19,500,000 - 19,500,000
Congo, Democratic Republic of ............. 319,114 10,680,886 11,000,000
Congo, People's Republic of...... ..... 457,538 172,462 630,000 1,500,000
Costa Rica ................. 4,550,242 - 4,550,242
Dahomey..................330,517 4,269,483 4,600,000
Ecuador................... 4,770,957 9,829,043 14,600,000
ElSalvador ................. 7,999,331 - 7,999,331
Ethiopia .................. 21,206,823 10,693,177 31,900,000 3,100,000
Gambia, The ................- - - 2,100,000
Ghana .................. 8,375,058 7,924,942 16,300,000 8,500,000
Guyana.................. 198,271 2,701,729 2,900,000
Haiti................... 349,855 .- 349,855
Honduras........ ......... 14,304,518 1,623,456 15,927,974 8,100,000
India.................... 1,015,284,994 152,081,844 1,167,366,838 97,500,000
Indonesia ................. 2,872,013 63,127,987 66,000,000 65,500,000
Jordan ................... 8,958,923 1,056,580 10,015,503
Kenya ................... 29,772,061 12,827,939 42,600,000 6,100,000
Korea ................... 26,206,116 17,086,808 43,292,924 15,000,000
Lesotho .................. 4,100,000 - 4,100,000
Malagasy Republic ............. 7,570,249 6,929,751 14,500,000 9,600,000
Malawi. ................ 10,911,164 21,838,836 32,750,000
Mali................... 5,545,795 3,554,205 9,100,000 7,700,000
Mauritania ....... ......... 4,427,514 5,272,486 9,700,000
Morocco ................. 2,147,785 16,152,215 18,300,000
Nepal ................... 27,000 1,673,000 1,700,000
Nicaragua ......... ........ 2,994,834 - 2,994,834
Niger.................... 3,142,115 4,477,109 7,619,224 584,000
Nigeria................... 16,609,593 18,890,407 35,500,000
Pakistan .................. 271,822,454 139,808,100 411,630,554 41,400,000
Paraguay ................. 17,544,425 3,855,575 21,400,000
Rwanda ................. 9,300,000
Senegal .................. 7,698,746 7,301,254 15,000,000 2,100,000
SierraLeone ...............- 3,000,000 3,000,000
Somalia ........ .......... 5,470,340 3,579,660 9,050,000
Sudan .. ................ 12,274,825 9,225,175 21,500,000
Swaziland ................. 2,800,000 - 2,800,000
SyrianArabRepublic ............ 2,551,577 5,948,423 8,500,000 -
Tanzania .................. 28,838,216 19,561,784 48,400,000
Togo................... 1,172,660 2,527,340 3,700,000
Tunisia ................. _ 14,304,642 18,057,956 32,362,598 10,500,000
Turkey .................. 80,891,955 11,424,032 92,315,987
Uganda .................. 11,015,588 21,984,412 33,000,000
UnitedArabRepublic .............- - - 26,000,000
UpperVolta.................5,027 794,973 800,000 ______

TOTALS ................. $1,741,450,126 $681,227,209 $2,422,677,335 $350,264,000

(1) Alldevelopmest
creditshavebeenmadeto member
governments
orto thegovernment
of a territoryof a member.
(1) Ofthe undisbursedbalance
the Association
hasenteredintoirrevocablecommitments to disburse
$873,931.
(1) Agreementsis theamountof $350,264,000
providingfor thesedevelopmentcreditshavebeensigned, hutthe development
creditsdanotbecome
effectiveand
disbursemeststhereunder
donst startuntiltheharrower takescertainactionandfurnishescertainducumentsto theAssociation.

102
Statementof Subscriptions,
Voting Power AppendixE
International
Development
and SupplementaryResources Association
June30, 1970
Expressedin UnitedStatesCurrency-SeeNotesto FinancialStatements,AppendixF

Subscriptions VotingPower Supplementary

Resources Total
Subscriptions
Total Amounts and
(NotesC Percent Number Percent Amountspaidin notyet due Supplementary
.Memberi') and G) of total of votes of total (NotesCandG) (NoteH) Resources
Australia
............................ $ 20,180,000 1.99 4,536 1.78 $ 35,800,000 $ 8,000,000$ 63,980,000
Austria . ........... ..... 5,040,000 .50 1,508 .59 10,480,000 2,720,000 18,240,000
Belgium . ................. 8,250,000 .81 2,150 .84 21,850,000 6,800,000 36,900,000
Canada . .................. 37,830,000 3.73 8,066 3.16 116,700,000 - 154,530,000
Denmark .............. ............. 8,740,000 .86 2,248 .88 26,300,000 9,400,000 44,440,000
Finland
. ............... ........... 3,830,000 .38 1,266 .49 5,018,000 1,360,000 10,208,000
France . .................. 52,960,000 5.22 11,092 4.34 126,672,00032,400,000 212,032,000
Germany . ........... ..... 52,960,000 5.22 11,092 4.34 150,600,00039,000,000 242,560,000
Italy . ................... 18,160,000 1.79 4,132 1.62 30,000,000 - 48,160,000
Japan . .................. 33,590,000 3.31 7,218 2.83 85,570,000 22,160,000 141,320,000
Kuwait . ................. 3,360,000 .33 1,172 .46 6,960,000 1,800,000 12,120,000
Luxembourg . .......................... 375,000 .04 575 .22 775,000 200,000 1,350,000
Netherlands . ................ 27,740,000 2.73 6,048 2.37 36,020,000 9,760,000 73,520,000
Norway . ............ .... 6,720,000 .66 1,844 .72 14,800,000 3,800,000 25,320,000
SouthAfrica ........................... 10,090,000 1.00 2,518 .99 5,990,000 1,000,000 17,080,000
Sweden . ................. 10,090,000 1.00 2,518 .99 74,135,000 20,000,000 104,225,000
UnitedKingdom . .... ......... 131,140,000 12.93 26,728 10,47 200,280,00051,840,000 383,260,000
UnitedStates . . ......... 320,290,000 31.58 64,558 25.28 632,000,000160,000,0001,112,290,000
TOTALS PARTI MEMBERS ............ $ 751,345,000 74.08 159,269 62.37 $1,579,950,000
$370,240,000
$2,701,535,000
Afghanistan ........................... $ 1,010,000 .10 702 .27 $ - $ - $ 1,010,000
Algeria . ................. 4,030,000 .40 1,306 .51 - - 4,030,000
Argentina . ............. ... 18,830,000 1.86 4,266 1.67 - - 18,830,000
Bolivia......................... .. 1,060,000 .10 712 .28 - - 1,060,000
Botswana . .......................... 160,000 .02 532 .21 - - 160,000
Brazil . .................. 18,830,000 1.86 4,266 1.67 - - 18,830,000
Burma . .................. 2,020,000 .20 904 .35 - - 2,020,000
Burundi ..... ....... ............... 760,000 .07 652 .26 - - 760,000
Cameroon . ................ 1,010,000(2) .10 702 .27 - - 1,010,000
Central AfricanRepublic . ........ 500,000 .05 600 .23 - - 500,000
Ceylon . ............... _ 3,030,000 .30 1,106 .43 - - 3,030,000
Chad ........ ......... 500,000 .05 600 .23 - - 500,000
Chile ................... 3,530,000 .35 1,206 .47 - - 3,530,000
China . .................. 30,260,000 2.98 6,552 2.57 - - 30,260,000
Colombia . ................ 3,530,000 .35 1,206 .47 - - 3,530,000
Congo, Democratic Republic of . . 3,020,000(2) .30 1,104 .43 - - 3,020,000
Congo, People's Republic of . ....... 500,000(2) .05 600 .23 - - 500,000
CostaRica ....... .................... 200,000 .02 540 .21 - - 200,000
Cyprus ................. 760,000 .07 652 .26 - - 760,000
Dahomey .................. _. ..... 500,000(2) .05 600 .23 - - 500,000
tDominican Republic . ........... 400,000 .04 580 .23 - - 400,000
Ecuador . ................ 650,000 .06 630 .25 - - 650,000
El Salvador . .......................... 300,000 .03 560 .22 - - 300,000
,Ethiopia . .......................... 500,000 .05 600 .23 - - 500,000
Gabon .................. 500,000 .05 600 .23 - - 500,000
Gambia, The........................ 267,000 .03 553 .22 - - 267,000
Ghana ..... ......... ............. 2,360,000 .23 972 .38 - - 2,360,000
Greece . .................. 2,520,000 .25 1,004 .39 - - 2,520,000
Guatemala . ......................... . 400,000 .04 580 .23 - - 400,000
Guinea . ........... ...... 1,010,000 .10 702 .27 - - 1,010,000
Guyana ................. 810,000 .08 662 .26 - - 810,000
Haiti................ ........... 760,000 .07 652 .26 - - 760,000
Honduras . .......................... 300,000 .03 560 .22 - - 300,000
Iceland ................. 100,000 .01 520 .20 - - 100,000
India. ............ .............. 40,350,000 3.98 8,570 3.36 - - 40,350,000
Indonesia . ...............- 11,100,000 1.09 2,720 1.07 - - 11,100,000
Iran .................... 4,540,000 .45 1,408 .55 - - 4,540,000
(conti
nued)

103
Statementof Subscriptions,
Voting Power AppendixE
International
Development
and SupplementaryResources (continued) Association
June 30, 1970
Expressedin United States Currency-See NGtesto Financial Statements, Appendix F

Subscriptions Voting Power Supplementary Resources Total

Subscriptions
Total Amounts and
(Notes C Percent Number Percent Amounts paid in not yet due Supplementara
MemberC') and G) of total of votes ot total (Notes C and G) (Note H) Resourcel

Iraq............... ......... $ 760,000 .07 652 .26 $ - $ - $ 760,000

Ireland . .3,030,000 .30 1,106 .43 - - 3,030,000
Israel . .1,680,000 .17 836 .33 - - 1,680,008
IvoryCoast . . 1,010,000(2) .10 702 .27 - - 1,010,000
Jordan . .300,000 .03 560 .22 - - 300,000
Kenya . .1,680,000 .17 836 .33 - - 1,680,000
Korea . .1,260,000 .12 752 .30 - - 1,260,000
Laos . .500,000 .05 600 .23 - - 500,000
Lebanon . .450,000 .04 590 .23 - - 450,000
Lesotho . .160,000 .02 532 .21 - - 160,000
Liberia . .760,000 .07 652 .26 - - 760,000
Libya . .1,010,000 .10 702 .27 - - 1,010,000
Malagasy Republic . .1,010,000 .10 702 .27 - - 1,010,000
Malawi . .760,000 .07 652 .26 - - 760,000
Malaysia . .2,520,000 .25 1,004 .39 - - 2,520,000
Mali . . 870,000 .09 674 .26 - - 870,000
Mauritania . .500,000 .05 600 .23 - - 500,000
Mauritius . .860,000 .08 672 .26 - - 860,000
Mexico . .8,740,000 .86 2,248 .88 - - 8,740,000
Morocco . .3,530,000 .35 1,206 .47 - - 3,530,000
Nepal . .500,000 .05 600 .23 - - 500,000
Nicaragua . .300,000 .03 560 .22 - - 300,000
Niger . .500,000(2) .05 600 .23 - - 500,000
Nigeria . .3,360,000 .33 1,172 .46 - - 3,360,000
Pakistan . .10,090,000 1.00 2,518 .99 - - 10,090,000
Panama . .20,000 (3) 504 .20 - - 20,000
Paraguay . .300,000 .03 560 .22 - - 300,000
Peru . .1,770,000 .17 854 .34 - - 1,770,000
Philippines . .5,040,000 .50 1,508 .59 - - 5,040,000
Rwanda . .760,000 .07 652 .26 - - 760,000
SaudiArabia . .3,700,000 .36 1,240 .49 - - 3,700,000
Senegal . .1,680,000(2) .17 836 .33 - - 1,680,000
SierraLeone . .760,000 .07 652 .26 - - 760,000
Somalia . .760,000 .07 652 .26 - - 760,000
Spain . .10,090,000 1.00 2,518 .99 - - 10,090,000
Sudan . .1,010,000 .10 702 .27 - - 1,010,000
Swaziland . .320,000 .03 564 .22 - - 320,000
SyrianArabRepublic . .950,000 .09 690 .27 - - 950,000
Tanzania . .1,680,000 .17 836 .33 - - 1,680,000
Thailand . .3,030,000 .30 1,106 .43 - - 3,030,000
Togo 760,000(2) .07 652 .26 - - 760,00e
Tunisia 1,510,000 .15 802 .31 - - 1,510,000
Turkey 5,800,000 .57 1,660 .65 - - 5,800,000
Uganda 1,680,000 .17 836 .33 - - 1,680,000
UnitedArabRepublic 5,080,000 .50 1,516 .60 - - 5,080,000
UpperVolta . .500,000 .05 600 .23 - - 500,000
Viet-Nam 1,510,000 .15 802 .31 - - 1,510,000
Yemen
ArabRepublic 430,000 .04 586 .23 - - 430,000
Yugoslavia 4,040,000 .40 1,308 .51 - - 4,040,000
Zambia 2,690,000 .27 1,038 .41 - - 2,690,000
TOTALS
PARTi1MEMBERS-Note
B... $ 262,917,000 25.92 96,083 37.63 $ 262,917,000
GRAND
TOTALS . .$1,014,262,000 100.00255,352100.00$1,579,950,000
$370,240,000
$2,964,452,000
(1) Memberswhose subscriptions maybe freely usedor exchangedby the Associatioii and whohave participated in the replenishment of the Association's resources
are included in Part 1. All other members are included in Part 11.
(2) Includes amounts aggregating the equivalent of $2,966,103receivable as a result of revaluation of the currencies of these members.
(3) Less than .005 percent.

General: $102,000 hasbeen received from Cambodiaon accountof its subscription pending admission to membership.

104
Notes to FinancialStatements Appendix F
International
Development
Association

June30, 1970

Note A Note D
Amountsin currencies otherthan UnitedStatesdollarshave TheInternational Bankfor Reconstruction andDevelopment has
beentranslatedinto UnitedStatesdollars: authorized transfers,by wayof grants,to the Associationtotal-
(i) In the cases of 74 members,at the parvaluesas specified ing$385,000,000 fromthenet income of the Bankfor thefiscal
in the "Schedule of ParValues,"published by the Interna- yearsendedJune30, 1964through1969. Of this amount,
tionalMonetary Fund; $222,360,000 hadbeenreceived as of June30, 1970.
(ii) In thecasesof the remaining31members (Algeria,Argen- Note E
tina,Bolivia,Brazil,Cameroon, CentralAfricanRepublic, Chad, The Association has enteredinto an agreementto borrow
Chile,China,Colombia, DemocraticRepublicof Congo,Peo- SwF52 million (approximately US equivalent$12.1million)
ple'sRepublic of Congo, Dahomey, Gabon, Guinea, Indonesia, fromthe SwissConfederation. Of thisamount,SwF34.7million
IvoryCoast,Korea, Laos,Malagasy Republic, Mali,Mauritania, hadbeenreceived at June30,1970;the balance wasreceived in
Mauritius,Niger,Paraguay, Peru,Senegal, Togo,UpperVolta, July1970.Theloancarriesnointerestandis repayable in forty
Viet-Nam andYemen ArabRepublic),at the ratesusedby such annualinstalments beginningJuly1, 1979.Thefirst ten instal-
members in makingpayments of subscriptionsto the Associa- mentswill be at 1% eachof the principalamountandthe re-
tion; and mainingthirty instalments will be at 3% of suchprincipal
(iii) In the caseof Swissfrancs,non-member currency,at the amount.
rateof 4.2975Swissfrancsto 1 UnitedStatesdollar.
Note F
Note B Nt
Theprincipaldisbursed andoutstanding on development credits
Pursuant to ArticleIV,Section1 (a) of theArticlesof Agreement andtheaccrued service
chargeareexpressed in termsof United
of the Association, theseamounts maybe usedbythe Associa- Statesdollarsof theweightandfineness in effectonJanuary 1,
tion for administrative expenses incurredby the Association in 1960andthe equivalent is payable by the borrowers in curren-
the territoriesof any member whosecurrency is involvedand, cieswhichtheAssociation determines to befreelyconvertible or
insofaras consistent withsoundmonetary policies,in payment freelyexchangeable by the Association for currencies of other
for goodsandservices produced in the territories
of suchmem- members of the Association, exceptthatsuchamountwouldbe
berand requiredfor projectsfinancedby the Association and reducedif (a) thereis a uniformproportionate reduction in the
locatedin suchterritories;and in additionwhenandto the parvaluesof the currencies of all members of the International
extentjustifiedby the economic andfinancialsituationof the Monetary Fundor (b) the Association so decides because of a
memberconcerned as determined by agreement betweenthe substantialreductionin the valueof oneor moremajorcur-
member andthe Association, suchcurrency shallbefreelycon- renciesof members. Theforegoing doesnot applyto a credit
vertibleor otherwise usable
for projects financed bytheAssocia- of $9,000,000 whichis expressed and is repayable in legal
tion andlocatedoutsidethe territoriesof the member, tenderdollars.
Note C Note G
UnderArticleIV,Section2, eachmember is required, if the par Subscriptions
and supplementary resources
are expressedin
valueof its currency is reduced or the foreignexchange value termsof UnitedStatesdollarsof the weightandfinenessin
of its currencyhasin the opinionof the Association depreciated effectonJanuary
1, 1960.
to a significantextentwithinthat member's territories,to main-
tain thevalueof theAssociation's holdings of its ninetypercent Note H
currency, includingthe principal
amountof anynotessubstituted
therefor,andthe Association is required if the parvalueof the ThesecondReplenishment 9t6o9SeventeenPartI Countries with
member's currency is increased,or the foreignexchange value .cntribution
agai $1,140.9milin, Payabl infrieel
of the member's currency hasin the opinionof theAssociation contrbutionsaggregating $1,140.96
millicn, payablein freely
appreciated to a significantextentwithinthat member's ter- convertblecurrences, haveparticpatedm the replemshment
ritories,to returnto the memberthe increase in the valueof OnePartI Country hasnotyetdepositednotificationof accept-
suchninetypercent currencyheldby the Association; provided, ance,but is expected
to doso oncompletionof actionon pend-
however,that the foregoingshall apply only so long as and to ng legislation $78584 million hasbeenpaid and the balance,
the extentthat suchcurrency shallnot havebeeninitiallydis- $355.12million,is duein November 1970.In addition,a total
bursedor exchanged for the currency
of anothermember. of $15.12million,in freelyconvertible
currencies,
is dueduring
the yearendingJune30, 1971fromtwoCountries whichhave
Supplementary resources of theAssociation
have,byagreement, madespecialsupplementary contributions
to theAssociation.
thesamerespective rightsandobligationsasto maintenance of
valueas areset forthin ArticleIV,Section2, of the Articlesof Note I
the Association. Theaccumulated net incomehasbeencreditedwith $66,928
The equivalent of $2,966,103 is duefrom eight members in representing a gainto theAssociation
asa resultof the revalua-
orderto maintainthe valueof the Association's currency hold- tion of the amountof earnings in Deutschemarkheldby the
ingsas requiredunderArticleIV,Section 2. Association at the dateof revaluation,
October1969.

105
Opinion of Financial Statements
Independent Auditor Covered by the
Foregoing Opinion

1707L STREET,N.W.
WASHINGTON,D.C.20036
JULY22, 1970

To
INTERNATIONAL
DEVELOPMENT
ASSOCIATION
WASHINGTON,
D.C.

In our opinion,the accompanying financial statements(Appen- Statementof Condition.Appendix A (page98)

dix A through AppendixF) present fairly, in terms of United Statementof Incomeand Expenses . AppendixB (page99)
States currency,the financial positionof InternationalDevelop-
mentAssociationat June30, 1970,andthe results of its opera- Statementof Holdingsof Currenciesand
tions for the year then ended, in conformity with generally Obligations ......... AppendixC (page100)
acceptedaccounting principlesapplied on a basis consistent State t f DeI nt
with that of the precedingyear.Our examinationof thesestate- Summary atemen o evelopmen
mentswasmadein accordance with generallyacceptedauditing Credits. ... AppendixD (page102)
standards,and accordinglyincludedsuchtestsof the accounting Statementof Subscriptions,VotingPower
records and such other auditing proceduresas we considered and SupplementaryResources ...... AppendixE (page103)
necessary
inthe circumstances.
Notesto FinancialStatements. AppendixF (page105)

PRICEWATERHOUSE
& CO.

106
 Statement of Development Credits Appendix G
International
Development
Signed During the Fiscal Year 1969/70 Association

Expressed
in UnitedStatesCurrency

Dateof Credit Service Principal

Borrowerand Purpose Agreement Maturities charge amount

- Afghanistan
Agriculture.................... .............................. June24, 1970 1980/2019 34% $ 5,000,000
Australia (Guarantor)
Agriculture-Papua and NewGuinea
................ .............. January30,1970 1979/20193 /4% 5,000,000
Roads-Papuaand NewGuinea.................................. June24, 1970 1980/2020 3/4% 4,500,000
Bolivia
Agriculture .................................................. January13,1970 1980/2019 3/4%% 1,400,000
Botswana
ProjectPreparation............................................. January15,1970 1979/2019 3/4% 2,500,000
Burundi
ProjectPreparation
........... ............... .............. June19, 1970 1972/1980 3/4% 380,000
Cameroon
Education
......................... ......................... September23,1969 1979/2019 3/4% 10,500,000
Roads .................................................. March27, 1970 1980/2019 34% 7,000,000
Central African Republic
Roads .................................................. June19, 1970 1980/2020 34% 4,300,000
Ceylon
Agriculture.................................................. November13, 1969 1979/2019 3/4% 2,500,000
Agricultureand Power....... ............ J...............
January 30, 1970 1980/2019 Y4% 14,500,000
Congo, Democratic Republic of
Industry............................ ....................... May28,1970 1980/2019 3 4% 5,000,000
Congo, People's Republic of
Roads.................................................. May28,1970 1980/2020 34% 1,500,000
Ecuador
Agriculture...................... ....................... January20, 1970 1980/2019 Y4% 1,500,000
Ethiopia
Agriculture.................. ................................ November26, 1969 1979/2019 3/4% 3,500,000
Agriculture........ .......................................... May28, 1970 1980/2020 34% 3,100,000
Gambia, The
Port........................................ ....... May26, 1970 1980/2020 34% 2,100,000
Ghana
WaterSupplyandSewerage ... ..................... ............ August28, 1969 1979/2019 34 % 3,500,000
Fisheries........................... ....................... September25, 1969 1979/2019 3 /4% 1,300,000
Agriculture.............................................. .... June26, 1970 1980/2020 3/4% 8,500,000
ProjectPreparation .......................................... July 29, 1969 1971/1979 3/4% 1,500,000
Honduras
Agriculture................ .................................. March2,1970 1980/2019 Y3/% 2,600,000
Power .................................................. June24, 1970 1980/2020 34% 5,500,000
, India
Railways.................. ................................ September 24, 1969 1979/2019 3/4% 55,000,000
Agriculture.................................................. February9,1970 1980/2019 34% 35,000,000
IndustrialImports...................... ....................... April 24,1970 1980/2020 3/4% 75,000,000
Agriculture.................................................. June3, 1970 1980/2019 3 /4% 35,000,000
Agriculture.................................................. June24, 1970 1980/2020 3 4% 27,500,000
Indonesia
Power.............................. October29, 1969 1979/2019 34% 15,000,000
Industry............................................... June15, 1970 1980/2020 34% 30,000,000
Agriculture.......................................... ..... June15, 1970 1980/2020 3 4% 17,000,000
Agriculture............................................... June15, 1970 1980/2020 3 4% 18,500,000
Kenya
...............................................
Education May20, 1970 1980/2020 3 4% 6,100,000
(continued)

107
Statementof DevelopmentCredits AppendixG
International
Development
Signed During the FiscalYear 1969/70 (continued) Association

Expressedin United States Currency

Date of Credit Service Principal

Borrower and Purpose Agreement Maturities charge amount

Korea
Railways
........ ....................................... May14,1970 1980/2019 3% $15,000,000
MalagasyRepublic
Port............................................. ...... ... June19,1970 1980/20203 4% 9,600,000
Malawi
Power ............................................... February
11,1970 1980/2019 3/4% 5,250,000
Mali
Roads ............................................... June17,1970 1980/2020 34% 7,700,000
Morocco
Roads........................................... ....... . November
13,1969 1980/20193 4% 7,300,000
Nepal
Telecommunications
....... ...................................... November
10,1969 1979/20193 4% 1,700,000
Niger
Agriculture
...................................................... June29,1970 1980/2020 3/4% 584,000
Pakistan
Industry................. ......... .. .......... February11,1970 1980/2019
3 4% 20,000,000
Agriculture............. .. ........................ ... May14,1970 1980/2019 3/4% 13,000,000
Telecommunications ....................... ...................... May22,1970 1980/2020 34% 15,000,000
Industry
........ ........ ... J.........
June 10,1970 1980/2020 3/4% 3,000,000
Education
.............................................. June29,1970 1980/2020 34% 8,000,000
Agriculture
.................................... June30, 1970 1980/20203 /4% 14,000,000
ProjectPreparation . ...................................... December 15,1969 1972/19803 /4% 800,000
ProjectPreparation ................................... June10,1970 1972/19793 4% 1,000,000
ProjectPreparation ............................... ............... June10,1970 1973/1980 34% 2,400,000
Rwanda
Roads
................ ............................... June17,1970 1980/2020 34% 9,300,000
Senegal
Roads ............................................... June19,1970 1980/20203 4% 2,100,000
Sierra Leone
Education
................ ............................... January
5,1970 1980/2019 3/4% 3,000,000
Tanzania
Roads..... ........................................... November
24,1969 1979/2018 34% 7,500,000
Tunisia
WaterSupply
............................................. .. June30,1970 1980/20203 4% 10,500,000
Uganda
Roads
............................................... September
29,1969 1980/20193 4% 11,600,000
United Arab Republic
Agriculture. ............................................... April 17,1970 1979/20193 4% 26,000,000
TOTAL ........................................ ......................................... .......... $605,614,000

108
 Bank/IDAAppendices

Page
1 BankLoansandIDACredits by Purpose andArea..... 110
2 BankLoansandIDACreditsby Country ...... ....... 112
3 Administrative of the BankandIDA.........
Budgets 114
.4 Governors of the BankandIDA. ..... 115
andAlternates
5 Executive andAlternates
Directors of the BankandIDA
andtheir VotingPower.......... ... 117
6 OfficersandDepartmentDirectors of the
* BankandIDA..... ............ 118

109
BankLoansand IDA Creditsby Purposeand Area

Cumulative Total, June 30, 1970

(Millions of US dollars, initial commitments net of cancellations and refundings)

Bank Loans by Area

Total Asia and Western
Bank and Middle Austral- Hemi-
Purpose IDA Total Africa East asia Europe sphere IFC

GRANDTOTAL......................... $17,047.7 $14,274.6 $2,014.5 $4,628.2 $514.6 $2,565.1 $4,352.2 $200.0

ELECTRICPOWER ... $ 4,805.0 $ 4,642.2 $ 512.4 $ 956.3 $148.2 $ 646.1 $2,379.1 $
TRANSPORTATION ..................... $ 5,252.1 $ 4,405.4 $ 915.8 $1,750.3 $ 58.0 $ 585.6 $1,095.8 $
Railways ................ ........... 2,042.2 1,688.8 446.8 734.1 42.0 272.4 193.5
Shipping .......................... . 12.0 12.0 - - - 12.0 - -
Portsand waterways ......... .......... 519.2 481.9 169.6 162.0 6.7 98.4 45.3 -
Roads ..... ...................... 2,527.3 2,071.3 249.4 792.5 - 195.6 833.8 -
Airlinesandairports...................... 22.0 22.0 - 5.6 9.2 7.2 - -
Pipelines ...... ..................... 129.5 129.5 50.0 56.2 - - 23.3 -

TELECOMMUNICATIONS ................ $ 379.7 $ 243.9 $ 37.1 $ 65.4 $ - $ 40.3 $ 101.1 $ -

AGRICULTURE, FORESTRY ANDFISHING $ 1,919.1 $ 1,294.1 $ 199.1 $ 536.8 $ _ $ 124.8 $ 433.5 $ -

Farmmechanization ....... ............ 24.4 24.4 5.0 9.0 - 2.0 8.4

Irrigationandfloodcontrol.......... .... 1,029.1 707.1 81.0 429.9 85.3 111.0* -
Landclearance,farm improvement,etc... 107.6 80.7 24.2 45.3 - 2.2 9.0
Cropprocessing and storage .............. 38.1 12.2 5.2 2.0 - 4.2 0.8
Livestockimprovement .................. 234.1 203.3 5.3 4.4 - 25.0 168.6 -
Forestryandfishing..................... 42.9 41.6 7.9 22.2 - 6.2 5.3 -
Agriculturalcredit...... . __ ....... .... 358.8 197.1 42.8 24.0 - - 130.4 -
Smallholders and plantations ............. 84.1 27.7 27.7 - - _ -
INDUSTRY ........................... $2,269.8 $2,165.8 $ 249.0 $1,141.5 $ _ $ 555.7 $ 219.6 $
Ironand steel. ......................... 399.0 399.0 - 344.1 - 25.0 30.0 -
Pulpandpaper . ............. 133.7 133.7 - 4.2 - 109.5 20.0 -
Fertilizer
andotherchemicals . ....... 171.4 141.4 30.0 57.0 - 54.4 - -
Otherindustries . ............. 274.1 264.7 20.5 5.2 - 203.6 35.4 -
Mining,otherextractive . ......... 179.1 179.1 101.0 19.5 - 11.9 46.7
Development financecompanies .......... 1,112.6 1,048.0 97.5 711.6 - 151.4 87.5 -

GENERALDEVELOPMENT AND
PROGRAMLOANS..................... $ 1,207.3 $ 552.3 $ 40.0 $ 103.8 $308.5 $ 100.0 $ - $
EDUCATION........................... $ 323.7 $ 144.5 $ 40.3 $ 29.8 $ - $ 12.0 $ 62.4 $ -
FAMILYPLANNING..................... $ 2.0 $ 2.0 $ - $ - $ - $ - $ 2.0 $-
WATERSYSTEMS ....................... $ 175.1 $ 127.1 $ 20.0 $ 44.4 $ - $ 3.9 $ 58.8 $ -
POST-WARRECONSTRUCTION --- $ 496.8 $ 496.8 $ $ $ - $ 496.8 $ - $ -
PROJECTPREPARATION AND.
TECHNICALASSISTANCE.......... $ 17.6 $ 0.9 $ 0.9 $ - $ - $ - $ $ -
FINANCINGLOAN(IFC).. ...... $ 200.0 $ 200.0 $ - $ - $ - $ - $ - $200.0

Note: Multipurpose loans are distributed accordingto each purpose and not assignedto the major purpose. Detail may not add to totals becauseof rounding.
*lncludes Loan No. 559 Guyana, Sea defense project.

110
 Appendix1

IDACreditsby Area
Asiaand Western
Middle Hemi-
* Total Africa East Europe sphere

$2,773.1 $548.1 $1,989.6 $92.3 $143.1

. $ 162.8 $ 15.3 $ 89.9 $25.7 $ 31.9
$ 846.7 $267.1 $ 502.3 $ - $77.3
353.4 26.6 326.8 - -

37.3 11.7 25.6 - -

456.0 228.8 149.9 - 77.3

$ 135.8 $ 0.8 $ 135.0 $ - $ -

$ 625.0 $119.9 $ 450.3 $31.9 $ 22.9

322.0 39.0 251.1 31.9 -

26.9 26.9 - - -
25.9 6.7 19.2 - -
30.8 7.9 - - 22.9
1.3 1.3 - - -
161.7 21.2 140.5 - -
56.4 16.9 39.5 - -
$ 104.0 $ 5.0 $ 64.3 $34.7 $ -

30.0 - 30.0 - -
9.4 - 9.4 - -

64.6 5.0 24.9 34.7 -

$ 655.0 $ - $ 655.0 $ - $ -
$ 179.2 $118.9 $ 52.3 $ - $ 8.0
$ - $ - $ - $- $ -
$ 48.0 $ 15.1 $ 29.9 $- $ 3.0
$ - $ - $ - $- $ -

$ 16.7 $ 6.1 $ 10.6 $ - $ -

$_- $ - $ - $- $ -

111
Bank Loans and IDA Credits by Country

CumulativeTotal, June 30, 1970

Expressedin United StatesCurrency-Initial commitmentsnet of cancellations,refundingsand terminations

Bank Loans IDA Credits Total

Country Number Amount Number Amount Number Amount

Afghanistan............................ - $ - 3 $ 13,500,000 3 $ 13,500,000 *

Algeria.......................... .. 3 80,500,000 - - 3 80,500,000
Argentina ........ .................... 7 357,602,049 - - 7 357,602,049
Australia ............................ 7 417,730,000 - - 7 417,730,000
Austria......................... ... 9 104,860,083 - - 9 104,860,083
Belgium....... ..................... 4 76,000,000 - - 4 76,000,000
Bolivia ............................ 1 23,250,000 5 25,800,000 6 49,050,000
Botswana.............. .............. - - 2 6,100,000 2 6,100,000
Brazil........... ...... ........... 29 838,034,660 - - 29 838,034,660
Burma ............................. 3 33,123,943 - - 3 33,123,943
Burundi......................... 1.... 4,800,000 3 3,280,000 4 8,080,000
Cameroon ............ ............ 5 37,100,000 4 29,050,000 9 66,150,000
CentralAfricanRepublic .................. - - 2 8,500,000 2 8,500,000
Ceylon......... .................... 8 89,712,258 4 23,900,000 12 113,612,258
Chad............................. - - 2 5,900,000 2 5,900,000
Chile ............................. 18 232,695,818 1 18,997,755 19 251,693,573
China........... .................. 12 244,072,087 4 13,073,716 16 257,145,803
Colombia ............................. 43 727,652,840 1 19,500,000 44 747,152,840
Congo,Democratic RepublicOf............. 5 91,582,854 2 11,000,000 7 102,582,854
Congo,People'sRepublicOf.............. 1 30,000,000 2 2,130,000 3 32,130,000
CostaRica ............................ 11 84,876,251 1 4,550,243 12 89,426,494
Cyprus............................. 4 34,194,412 - - 4 34,194,412
Dahomey............ ......... .......... . - 1 4,600,000 1 4,600,000
Denmark...... .................... 3 85,000,000 - - 3 85,000,000
DominicanRepublic
... .......... 1 25,000,000 - - 1 25,000,000
Ecuador ............................ 9 63,300,000 3 14,600,000 12 77,900,000
El Salvador............................ 9 57,918,024 1 7,999,331 10 65,917,355
Ethiopia .... 11 97,800,000 5 35,000,000 16 132,800,000
Finland .. .................. 14 243,526,846 - - 14 243,526,846
France................ ............ 1 250,000,000 - 1 250,000,000
Gabon . ................... .. 4 54,788,722 - - 4 54,788,722
Gambia,The....... ............... _ - 1 2,100,000 1 2,100,000
Ghana.... ................ .......... 2 53,000,000 5 24,800,000 7 77,800,000
Greece................... ..... 2 32,500,000 - - 2 32,500,000
Guatemala........ .................... 4 46,500,000 - - 4 46,500,000
Guinea ...... ...... ...... 2 64,500,000 - - 2 64,500,000
Guyana ...... .......... 3 8,819,017 1 2,900,000 4 11,719,017
Haiti...... ............ . ........ 1 2,600,000 1 349,855 2 2,949,855
Honduras ................. 9 52,317,613 5 24,027,974 14 76,345,587
Iceland ... .............. 1............ 25,914,000 - - 7 25,914,000
India. ...............................
. 39 1,087,653,602 28 1,264,866,838 67 2,352,520,440
Indonesia .. ...... ... -. - 8 131,500,000 8 131,500,000
Iran ............ 15 447,397,565 - - 15 447,397,565
Iraq . .............
........... . 2 25,293,946 - - 2 25,293,946
Ireland ........................ ... 1 14,500,000 - - 1 14,500,000
Israel . .. .... 6 134,412,479 - - 6 134,412,479
Italy .......................... . . 8 398,028,000 - - 8 398,028,000
Ivory Coast(O ...... ... 7 48,491,567 - - 7 48,491,567
Jamaica ......................... 6 44,012,988 - - 6 44,012,988
Japan .......... ................ . 31 857,041,004 - - 31 857,041,004
Jordan .... ........................ - - 4 10,015,502 4 10,015,502
Kenya(2). ... .. 10 197,524,026 10 48,700,000 20 246,224,026
Korea... ................... 110,000,000 5 58,292,924 9 168,292,924
Lebanon ..... ...... ........... 1 27,000,000 - - 1 27,000,000
Lesotho .......... ............ 1 4,100,000 1 4,100,000
Liberia.. ........ ............. 4 15,249,812 - - 4 15,249,812

112
 Appendix2

BookLoans IDACredits Total

Country Number Amount Number Amount Number Amount

-tuxembourg.......... ..... 1 $ 11,761,983 - $ - 1 $ 11,761,983

Malagasy Republic.... ........ 3 11,100,000 3 24,100,000 6 35,200,000
Malawi
....... .......... -- 6 32,750,000 6 32,750,000
~Valaysia
......... .. .. ., .. 13 237,878,513 - . 13 237,878,513
Mali(')..... ............ 2 16,800,000 2 16,800,000
- Malta.... ............. 1 6,040,080 - - 1 6,040,080
Mauritania ........... .... 1 66,000,000 2 9,700,000 3 75,700,000
Mauritius ....... ... ..... 1 6,973,119 - - 1 6,973,119
Mexico ......... .. ..... 24 978,705,679 - .- 24 978,705,679
Morocco .............. ... 8 143,049,041 2 18,300,000 10 161,349,041
Nepal................ .. - - 1 1,700,000 1 1,700,000
- Netherlands ......... ...... 10 236,451,985 - -.. 10 236,451,985
NewZealand . ...... .. ..... 4 96,923,771 - - 4 96,923,771
Nicaragua .... ... .. .. 15 59,858,828 1 2,994,834 16 62,853,662
Niger...... .. ...... .. -- 3 8,203,224 3 8,203,224
Nigeria .................. 10 241,600,000 2 35,500,000 12 277,100,000
- Norway .... ..... .... ... 6 145,000,000 - - 6 145,000,000
Pakistan., ......... ..... 31 633,470,130 36 453,218,054 67 1,086,688,184
Panama .......... .... . 6 60,047,426 - - ~ 6 60,047,426
Papua andNewGuinea ......... 2 11,500,000 3 11,000,000 5 22,500,000
Paraguay ............... 6 21,838,549 4 21,400,000 10 43,238,549
Peru................. .. 23 214,102,066 - - 23 214,102,066
Philippines ...... .... ..... 13 217,020,336 - - 13 217,020,336
- Portugal ........ .... .... 5 57,500,000 - - 5 57.500,000
Rhodesia(3) ..... .. .. .. 3 86,950,000 - 3 86,950,000
Rwandia .............. ... - - 1 9,300,000 1 9,300,000
Senegal(') ........... ... .. 2 7,500,000 3 17,100,000 5 24,600,000
SierraLeone ......... .. .... 2 7,700,000 1 3,000,000 3 10,700,000
Singapore ........ ... .... 10 114,243,457 - - 10 114,243,457
Somalia ............... .. - 3 9,050,000 3 9,050,000
SouthAfrica..... .... ...... 11 241,800,000 - 11 241,800,000
-Spain ........ ....... 6 224,161,832 - - 6 224,161,832
Sudan ... .............. 6 134,000,000 2 21,500,000 8 155,500,000
Swaziland ................ 2 6,950,000 1 2,800,000 3 9,750,000
Syria....... . .. .... -- 1 8,500,000 1 8,500,000
2
Tanzania( ).. . . .. ... 2 12,200,000 8 48,400,000 10 60,600,000
Thailand .... .. .. .. ..... 21 358,364,939 - - 21 358,364,939
logo. .~.. .. ... .... .. - 1 3,700,000 1 3,700,000
TrinidadandTobago ............ 5 46,390,424 - - 5 46,390,424
Tunisia .............. ... 9 76,835,481 5 42,862,598 14 119,698,079
-.Turkey.......
5
... ... .. 11 144,184,967 8 92,315,987 19 236,510,954
Uganda(2 . .... .. .. 1 8,400,000 5 33,000,000 6 41,400,000
UnitedArabRepublic ........ ... 1 56,500,000 1 26,000,000 2 82,500,000
Upper Voltars) ......... ..... - 1 800,000 1 800,000
Uruguay......... ... . ... 7 108,463,116 - - 7 108,463,116
Venezuela ..... ....... .... 9 298,266,783 - - ~ 9 298,266,783
Yugoslavia ...... ..... ..... 16 475,490,547 -. -. 16 475,490,547
3
Zambia()............. .... 10 131,550,000 - - 10 131,550,000
InternationalFinance Corporation
... 1 200,000,000 - -. 1 200,000,000
TOTAL.... ......... .. 705 $14,274,649,518 221 $2,773,128,835 926 $17,047,778,353

(') Oneloanfor$7.5milliono
shomn against
IvoryCoastissharedwithMali,Senuega[andUpperVolta.
(2) Threeloanstotaling
$75 million
shownagainstKenyaare shared withTanzaniaandUganda.
(') Threesoanstotaling$106.7million
honebeenassignedin equalsharesto RhodesiaandZambia.

113
Administrative Budgets Appendix 3
of the Bank and IDA
For the FiscalYearEndingJune30, 1971

ActualExpenses Budgets
1970 1971
(thousands
of USdollars)

BY ORGANIZATIONAL UNIT
Boardof Governors ............... ............. ..... 768 1,013
ExecutiveDirectors............ .................... 2,495 3,003
Executiveoffices.......... ......................... 1,169 1,068
Area departments . . ................................. 12,995 15,831
Projectsdepartments . . .............................. 17,551 23,734
Cooperative Programs,FAOand Unesco . ...... 2,056 2,901
Development FinanceCompaniesDepartment ........... 1,476 1,870
Economicstaff. ................ .................... 4,870 5,845
Controller'sand Treasurer'sDepartments,
Internal Auditor.......................... ..... 3,290 3,955
AdministrationDepartment . . ....... 6,126 7,281
Other departments .......... . ..................... 7,734 9,255
Trainingprograms,EDI . . ....... 1,660 1,915
Settlementof InvestmentDisputes,ICSID............. 81 84
Grantsfor consultantsto membercountries............ 376 434
Commissionon internationaldevelopment.......... ... 305 -
Contingencyallowance ............................... _ 1,150
TOTALS ...................................... 62,952 79,339
Less:IFC Serviceand SupportFee........ ........... -1,699 -1,749
TOTALSIBRD/IDA........... .................... 61,253 77,590

BY EXPENSE CATEGORY
Personalservices ................................... 37,977 47,287
Operationaltravel................................... 7,534 8,930
Representation ........... .......................... 339 362
Consultants. ........ ........ ...... 2,672 4,160
Contractualservices ...................... 1,996 2,364
Overhead expenses:
Staff benefits............ ......................... 1,408 1,919
Other travel............... ................... ... 2,789 3,885
Officeoccupancy .................................. 4,558 4,961
Communications ......................... .... ... 1,512 1,784
Otherexpenses .......... ......................... 2,167 2,537
Contingency. ......-............. ...........-...
. 1,150
TOTALS................... ............ 62,952 79,339
Less:IFC Serviceand SupportFee.......... .... -1,699 -1,749
TOTALSIBRD/IDA................................ 61,253 77,590
Of which: IBRD..................... 45,453 57,490
IDA ................... 15,800 20,100

TheAdministrative
Budgetsforthefiscalyear endingJune30,1971,werepreparedby the Presidentand
approvedby the ExecutiveDirectorsin accordance
with the By-Lawsof the Bankand IDA. For purposes
of comparisonthe administrativeexpensesincurredduring the fiscalyear endedJune30, 1970,are
alsoshown.
TheAssociation reimbursesthe Banka single Management Feefor administrativeexpenses incurred
on its behalf.The Management Fee,whichcomprisesthe Association's Budgetfor the year, has been
established
at $20.1millionfor the fiscalyearendingJune30, 1971.
In FY1971 generalassistance renderedby the Bankto IFCwill be paidby a Serviceand SupportFee
fixed for the fiscalyear. The Feehas beenestablishedat $1.7 millionfor the fiscalyear endingJune
30, 1971.

114
 Governors and Alternates Appendix 4
of the Bank and IDA
June 30, 1970

Member Governor Alternate

Atfghanistan ...... MohammedAman

Algeria.... Cherif Belkacem . ............. KamalAbdellahKhodja
Argentina.... CarlosMoyanoLlerena. ...... .. Egidio lannella
,Australia . ... L. H. E. Bury .................. Sir RolandWilson
Austria.... HannesAndrosch . ............ Walter Neudorfer
Belgium.... BaronSnoyet d'Oppuers. ......... BaronAnsiaux
Bolivia .. .................... OscarVegaL6pez.............. . Luis OvandoCandia
Botswana.. .. Q. K. J. Masire . ............. H. C. L. Hermans
Brazil . ... Antonio Delfim Netto . .......... ErnaneGalveas
Burma .... Kyaw Nyein ............... Chit Moung
Burundi .... .......... JosephHicuburundi ............... AthanaseNtukamazina
Cameroon .... LaurentNtamag . .... F.....
E. M. Koulla
Canada..... Edgar John Benson . ..... ..... MauriceF. Strong
CentralAfrican Republic.......... Bernard-ChristianAyandho........ AndreZanife-Touambona
Ceylon........... ......... N. M. Perera . ............ MurugeysenRajendra
Chad. .................... GeorgesDiguimbaye. ......... Benoit Boukar
Chile............. ....... CarlosMassadAbud . .... ... JorgeMarshallSilva
China ................... . .TLi . ...... ........ Chao-kueiMa
Colombia.............. ...... Abd6n EspinosaValderrama....... JorgeMejia Palacio
Congo,DemocraticRepublicof ..... L. Namwisi . .............. CyrilleAdoula
Congo,People'sRepublicof ....... BanzaBernardBouiti . ......... Jean-Edouard Sathoud
CostaRica............ OmarDengo 0. . ... . ........ Alvaro VargasE.
Cyprus ............ A. C. Patsalides . . .... A. C. Afxentiou(2'
Dahomey ...... ...... JosephKeke. .... RobertTagnon
Denmark ............ Otto MUller . .... Karl Otto Bredahl
DominicanRepublic... .... Di6genesH. Fernandez . . ... Luis M. GuerreroG6mez
Ecuador............ Luis G6mez-lzquierdo . . CarlosMantilla-Ortega
El Salvador............ EdgardoSuarezC . .... ArmandoInteriano
Ethiopia..... .. .. .., MammoTadesse . ............ WoldeMariamGirma
Finland ...... Mauno Koivisto . . JussiLinnamo
France...... Ministre des Finances. . BernardClappier
Gabon. EdouardAlexis M'Bouy-Boutzit ..... Paul Moukambi
Gambia,The..... .S. M. Dibba . ......... .. .... H. R. Monday,Jr.
Germany . .... . Karl Schiller . . ..... Alex Moller
Ghana..... .JosephHenry Mensah. . ..... E. N. Omaboe
Greece ..... EmmanuelFthenakis....... AchillesCominos
Guatemala ...... EmilioA. PeraltaP. .I..... JoseLuis Bouscayrol
Guinea ... .. LaminyKonde . ...... N'FalySangare
Guyana ...... P. A. Reid.. H. 0. E. Barker
Haiti ...... ............. Clovis Desinor . ... AntonioAndr6
Honduras.. ..... ..... ManuelAcostaBonilla . .......... RicardoZuhigaAugustinus
Iceland .. ........... .........Gylfi Gislason . ... ......... MagnusJ6nsson
India .... ............ .Y. B. Chavan(). 1. G. Patel
'Indonesia .... Ali Wardhana. DioeanaKoesoemohardia
Iran .. . . ..... ............. JamshidAmouzegar. ... ....... JahangirAmuzegar
Iraq ......... Amin Abdul Karim Kalamchi....Sa'adi Ibrahim
,Ireland ......... GeorgeColley .......... ..... C. H. Murray
Israel ......... DavidHorowitz...... .. ...... AvrahamAgmon
Italy .... ........ .......... GuidoCarli. PaoloBaffi
Ivory Coast .Konan Bedi .. MohamedDiawara
Jamaica" ........... .. EdwardSeaga . .G. ArthurBrown
Japan............. TakeoFukuda . .Tadashi Sasaki
Jordan ............. Sami Judah AdelShamayleh
Kenya .... ......... Mwai Kibaki John NjorogeMichuki
Korea ............. DuckWoo Nam .... SungWhanKim
Kuwait . ..... ........... ... Abdul RahmanSalim Al-Ateeqi..... Abdlatif Y. Ai-Hamad
Laos OudongSouvannavong . .......... Sitha Sisombat
Lebanon.Khalil Salem . . ....... Farid Solh
(continued)
I" Member of the Bank only.
24 Appointment effective after June 30, 1970.

115
 Governors and Alternates Appendix 4
of the Bank and IDA (continued)

June 30, 1970

Member Governor Alternate

Lesotho . ........... P. N Peete ........... E. Waddington

Liberia ........... J. Milton Weeks ........... CyrilBright V
Libya .. . .. M. H. Arrabeie ......... K. M.Sherlala
Luxembourg .......... . PierreWerner........... AlbertDondelinger
MalagasyRepublic .......... . RalisonRakotovao. .......... RaymondRandriamandranto
Malawi .......... .. AlekeK. Banda . .......... K. J. Barnes
Malaysia . ..........TanSiewSin (2) ............... MohamedSharif bin Abdul Samad
Mali ... . . ...... Tioule Konate . ...... .......... SidyCoulibaly
Mauritania ... . .MamadouToure MamadouCissoko
Mauritius .... .VeerasamyRingadoo.... .... ... Ramaswamy Pyndiah
Mexico . . ,,Antonio Ortiz Mena .... . JoseHernandezDelgado
2
Morocco .. . .. AbdelkrimLazraq. ... - .. M'HamedBargach( '
Nepal . ...... .BhekhBahadurThapa .... ... PuskarNathPant
Netherlands.................... .H. J. Witteveen . . . J. H.0 graafvan den Bosch
NewZealandcl'..... H. G. Lang . .C. F.Sproule
Nicaragua .... .GuillermoSevilla-Sacasa . ... ... JuanJoseMartinezL.
Niger .. .... . Alidou Barkire. ...... ..... .. AbdoulayeDiallo
Nigeria .... ... .0.Awolowo . ..........- AbdulAzizAtta
Norway ... ... Otto GriegTidemand . . .ChristianBrinch
Pakistan ... NawabMozaffarAli Khan Qizilbash.GhulamIshaq Khan
Panama .................. ... GabrielCastroS'2. .. NicolasArdito Barletta
Paraguay... . .C6sarRomeoAcosta . ...... .... AugustoColman
Peru ......... . ..... ... FranciscoMoralesBermudezC ... Luis Barua CastaReda
Philippines ..... .CesarVirata . . RobertoS. Benedicto
Portugal"' ........... ..JoaoAugustoDias Rosas. ........ Luis M.TeixeiraPinto
Rwanda ....................... Fidele Nzanana . . . FideleNkundabagenzi
Saudi Arabia . . .... Ahmed Zaki Saad
Senegal . .Adama Diallo.. HametDiop
Sierra Leone. . M. S. Forna. . ElkanahLaurenceCoker
Singaporel' . .Goh Keng Swee .. Hon Sui Sen
Somalia . ................ Ibrahim MegagSamater. ......... OmarAhmedOmar
SouthAfrica . .. NicolaasDiederichs. ........... TheunisWillemde Jongh
SouthernYemen) . . MahmoudUshaish. . Ali Hamshari
Spain . .Alberto MonrealLuque.. MarianoNavarroRubio
Sudan . .Abdel Karim Mirghani GharieballaMohamedHamid
Swaziland . . J. R. Masson.J.. . James Nxumalo
Sweden . ............... G. E. Strang. ............ ..... Krister Wickman
SyrianArab Republic. ............ NourAllah NourAllah . . ... AmmarJammal
Tanzania . ............... P. Bomani . .Cleopa D. Msuya
Thailand . ...... ........ Serm Vinicchayakul. . Bisudhi Nimmanahaeminda
Togo .... ............... Jean Tevi . .Boukari Djobo
Trinidadand Tobago' . . I .F. C. Prevatt . . . D. H. N. Alleyne
Tunisia .... ChedlyAyari .................. .. Ali Zouaoui
Turkey . ... MesutErez .................. KemalCanturk
Uganda . . .......... LaurenceKalule-Settala........... E. B. Wakhweya
UnitedArabRepublic . .......... HassanAbbasZaki ............... HamedAbdelLatif El Sayeh
UnitedKingdom . . Sir LeslieO'Brien . ............ Sir DouglasAllen
UnitedStates .... ..... David M. Kennedy. . NathanielSamuels
UpperVolta . ......... .... PierreClaverDamiba . . PierreTahita
. .
Uruguay"' . .. ArmandoR. Malet
Venezuela' . ............. RafaelAlfonzoRavard. . C.........
arlos EmmanuelliLlamozas
Viet-Nam ..... ...... ..... NguyenVanDong
1 21 12
YemenArab Republic ........ ..... Abdul KarimAl-Arashy ........ .. MohamedSaidAlattar )

Yugoslavia ............ . JankoSmole. . . KsenteBogoev

Zambia . . F...
E H. K. Mudenda. . E. G. Kasonde
Note: Cambodia became a member of the Bank and IDA, and Equatorial Guinea became a member of the Bank after June 30,
1970. Cambodia has appointed Hing Kunthel and Mau Say as Governor and Alternate Governor. Equatorial Guinea has appointed
AndresNko lvasaand GabrielAndobeBuangaas Governorand AlternateGovernor.
1) Member of the Bankonly.
(2) Appointment effectiveafterJune30, 1970.

116
ExecutiveDirectorsand Alternatesof the Appendix5
Bankand IDA and Their Voting Power
June30, 1970

Total Votes
ExecutiveDirector Alternate CastingVotesof Bank IDA

Appointed
Robert E. Wieczorowski........... Emmett J. Rice.......... ..... .United States........... .... ..... ......... 63,750 64,558
Derek J. Mitchell . .... ... .... M. P. J. Lynch ...... .... .... United Kingdom ...... ............... ..... 26,250 26,728
Wilhelm Hanemann. Jorg Jaeckel... ... .... Germany... ............ . ......... 13,050 11,092
GeorgesPlescoff.. Jean P. Carriere.France ....................... . .......... 10,750 11,092
S. R. Sen . M. R. Shroff ............. India ........ ............. .... 8,250 8,570
Elected
Seitaro Hattori ....... ...... .H. Jinadasa Samarakkody ..... Burma, Ceylon, Japan, Nepal, Singapore'),
(Japan) (Ceylon) Thailand......... ........... ..... ... 11,993 10,934
Giorgio Rota....... ....... .... Juan Moro........ . .. ..... Greece, Italy, Portugal('), Spain ....
. ........ 11,794 7,654
(Italy) (Spain)
2
Patrick M. Reid( ). A. Roy MacMillan.Canada, Guyana, Ireland, Jamaica(l' ... .... 10,333 9,834
(Canada) (Canada)
J. 0. Stone ...... A. W. Young....... .. .Australia, New Zealand('), South Africa.......... 9,880 7,054
(Australia) (New Zealand)
S. Osman Ali ................. Abdol Ali Jahanshahi......... Iran, Iraq, Jordan, Kuwait, Lebanon, Pakistan,
(Pakistan) (Iran) Saudi Arabia, Syrian Arab Republic, United
Arab Republic ... .. .... . ..... .... 9,877 10,346
Reignson C. Chen*............ C. L. Chow. ....... . China, Korea, Viet-Nam........ ... 9,210 8,106
(China) (China)
Christopher Kahangi. .......... Donatien Bihute. . . Botswana, Burundi, Ethiopia, The Gambia,
(Tanzania) (Burundi) Guinea, Kenya, Lesotho, Liberia, Malawi, Mali,
Nigeria, Sierra Leone, Sudan, Tanzania,
Trinidad and Tobago('), Uganda, Zambia... 9,169 11,621
Pieter Lieftinck* ........ .. ... Vladimir Ceri6..... ..... .... Cyprus, Israel, Netherlands, Yugoslavia........ 8,739 8,844
(Netherlands) (Yugoslavia)
Andr6 van Campenhout*......... Friedrich T. Krieger.Austria, Belgium, Luxembourg, Turkey .8,717 5,893
(Belgium) (Austria)
Abderrahman Tazi*... Mohammed Younos Rafik........ Afghanistan, Algeria, Ghana, Indonesia, Laos,
(Morocco) (Afghanistan) Libya, Malaysia, Morocco .... . .. .... _ 8,627 9,212
Erik L. Karlsson...... . Erik Hauge..... ...... Denmark, Finland, Iceland, Norway, Sweden..... 8,466 8,396
(Sweden) (Denmark)
Luis Machado*....... .. Arnoldo Ramirez-Eva...... . Costa Rica, El Salvador, Guatemala, Haiti,
(Cuba) (Nicaragua) Honduras, Mexico, Nicaragua, Panama,Peru,
Venezuela(')..... ...... ........... 7,803 7,058
Mohamed Nassim Kochman...... Michel Bako ._ ....... ... Cameroon, Central African Republic, Chad,
(Mauritania) (Chad) Congo(Democratic Republic of), Congo
(People's Republic of), Dahomey, Gabon, Ivory
Coast, Malagasy Republic, Mauritania,
Mauritius, Niger, Rwanda, Senegal, Somalia,
Togo, Upper Volta...... 7,564 11,474
Virgilio Barco . .. .... Oscar Alviar-Ramirez ............ Brazil, Colombia, Dominican Republic,
(Colombia) (Colombia) Ecuador, Philippines.7,393 8,190
Angel R. Caram ..... ...... Abelardo Brugada S.... Argentina, Bolivia, Chile, Paraguay, Uruguay"' 6,466 6,744
(Argentina) (Paraguay)
In addition to the ExecutiveDirectorsand Alternatesshownin the foregoinglist, the followingalsoservedas ExecutiveDirectorafterJune30, 1969:
ExecutiveDirector Endof Periodof Service
E. W. Maude........... ...... ...... October 21, 1969
(United Kingdom)
Covey T. Oliver. . ...... November 3, 1969
(United States)
Ernst vom Hofe... ......... ..January 31, 1970
(Germany)
S. Jagannathan . .... .... June 15, 1970
(India)
Hideo Suzuki . . ..... ..... June 15, 1970
(Japan)
(1) Memberof the Bankonly. (2) Succeeded byClaudeIsbister(Canada)effectiveAugust1, 1970 Member,Audit Committee.
Note: Cambodia(453 votes in the Bankand 704 votes in IDA), EquatorialGuinea(314 votes in the Bank), SouthernYemen(485 votes in the Bank),
Swaziland(314votes in the Bankand 564 votes in IDA), Tunisia(623 votesin the Bank and 802 votes in IDA) and YemenArab Republic(335 votes in
the Bankand 586 votes in IDA) not yet formally representedby an ExecutiveDirector.Cambodiabecamea memberof the Bankand IDA and Equatorial
Guineaa memberof the Bankafter June30, 1970.Tunisiadid not participatein the RegularElectionof 1968.

117
Officers and Department Directors Appendix 6
of the Bank and IDA

June30, 1970

President .......... ............................. ... RobertS. McNamara

Vice Presidentand Chairman,LoanCommittee . ............... J. BurkeKnapp
Vice President-Financeand Director,Projects ........... ...... S. Aldewereld
GeneralCounsel ................. A. Broches
Director,Development ServicesDepartment . . RichardH. Demuth
TheEconomicAdviserto the President . .. ............... Irving S. Friedman
Vice President ..... ................... Sir DenisRickett
Vice President........ .. .................... ................ MohamedShoaib
Treasurer ............ ......... ................... .......... EugeneH. Rotberg
Controller .. . ......... Francis R. Poore
Secretary .................. ............ M. M. Mendels

Director,Programmingand BudgetingDepartment . .John H. Adler

Director,SouthAmericaDepartment . ................... GeraldAlter
Director,EducationProjectsDepartment.. . . DuncanS. Ballantine
AssociateDirector,Projects.. . . WarrenC. Baum
Director,ResidentStaff in Indonesia........... .................... BernardR. Bell
Director,Europe,Middle Eastand North Africa Department............ MunirP. Benjenk
Director,SouthAsia Department ................. I....
L P. M. Cargill
DeputyDirector,Projects ............ BernardChadenet
Director,WesternAfrica Department.... .. ...... RogerChaufournier
Director,Informationand PublicAffairs . .................. WilliamClark
SpecialRepresentative for UnitedNationsOrganizations . ....... ... FedericoConsolo
DeputyChairman,LoanCommittee . ................... S. R.Cope
Director,Development FinanceCompaniesDepartment . ............ William Diamond
SpecialAdviser........ ......... ..................... AbdelG. El Emary
Director,AgricultureProjectsDepartment L. J. C.Evans
Director,Industrial ProjectsDepartment . .................. Hans Fuchs
Director,EastAsiaand PacificDepartment... . R.J. Goodman
Director,CentralAmericaand CaribbeanDepartment............... EdgarGutierrez
AssociateDirector,Development ServicesDepartment . . MichaelL. Hoffman
Director,EconomicsDepartment . .Andrew M. Kamarck
Director,PopulationProjectsDepartment . . K. Kanagaratnam
Director,EuropeanOffice .................. ...... Arthur Karasz
Director,TransportationProjectsDepartment A. DavidKnox
Director,TourismProjectsDepartment . .Alfred Koch
Director,EconomicDevelopment Institute . .. S. Krishnaswamy
Director,EasternAfricaDepartment .......... ................... MichaelL. Lejeune
AssociateGeneralCounsel ....................... .Lester Nurick
Director of Administration ........... ...... .... Hugh B. Ripman
Director,SpecialProjectsDepartment.Robert Sadove
Director,PublicUtilities ProjectsDepartment........................ MervynWeiner

118
1

I
WORLDBANK
INTERNATIONALDEVELOPMENT
ASSOCIATION
Headquarters/ 1818H Street, N.W.,Washington,D.C.20433,U.S.A.Telephone: EXecutive3-6360
EuropeanOffice/ 66 Ave.d'lena, Paris 16e, France.Telephone: 553-2510
CableAddresses/ World Bank: INTBAFRAD,International DevelopmentAssociation: INDEVAS