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Finance & Development, September 1981
Article

Bank activity: Clausen assumes presidency of Bank; China to develop science and engineering education system with Bank and IDA assistance; Colombia receives help for power and irrigation sectors. Bank loans and IDA credits

Author(s):
International Monetary Fund. External Relations Dept.
Published Date:
September 1981
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A. W. Clausen is new Bank president

A.W. Clausen, formerly president of the Bank of America, succeeded Robert S. McNamara, who retired on June 30, as president of the World Bank.

His candidature had been proposed by the United States Government and was approved by the Executive Directors of the Bank on November 6, 1980.

Mr. Clausen, 57, joined the Bank of America in 1949 as a trainee just out of the University of Minnesota law school and rose to become president of the San Francisco-based institution 21 years later. His career at the Bank of America spanned 31 years, and he played an important role in the bank’s expansion in the United States and overseas.

Born in Hamilton, Illinois, he was educated at Carthage College, the University of Minnesota School of Law, and the Harvard Business School. Mr. Clausen has been bestowed many honors, including the Order of Merit of the Italian Republic, California Industrialist of the Year (1978), and the Order of Francisco de Miranda of Venezuela.

China to receive its first World Bank loan

China’s efforts to develop its higher education in science and engineering and thus relieve a persistent shortage of trained manpower in these areas will be assisted with a loan of US $100 million from the World Bank and a $100 million credit from the International Development Association (IDA). This is the first World Bank operation in China since the People’s Republic assumed China’s representation at the World Bank in May 1980.

The University Development Project will help increase enrollment of science and engineering students at 26 leading universities from 92,000 to 125,000, introduce graduate degree programs, improve the quality of teaching and research, and strengthen the management of universities and the Ministry of Education. The total cost of the project is estimated at $295 million, of which the World Bank and IDA will finance the full foreign exchange cost of $200 million. The remainder will be financed by the Government.

Table 1World Bank and IDA lending: fiscal years, 1980-81(Ending June 30)
Fiscal year
19801981
World Bank(In millions of U.S. dollars)
Loan amounts7,6448,809
Disbursements14,3635,063
(Number)
Operations
approved144140
Borrowing
countries4850
Member
countries135139
International
Development
Association
(IDA)(In millions of U.S. dollars)
Credit amounts3,8383,482
Disbursements1,4111,878
(Number)
Operations
approved2103106
Borrowing
countries4040
Member
countries121121
Source: World Bank Annual Report 1981.

Excludes disbursements on loans to International Finance Corporation.

Joint World Bank/IDA operations are counted only once as Bank operations.

Source: World Bank Annual Report 1981.

Excludes disbursements on loans to International Finance Corporation.

Joint World Bank/IDA operations are counted only once as Bank operations.

Table 2IDA credits approved during fourth quarter of fiscal year 1981(Ended June 30, 1981)
Country1PurposeAmount

(In millions

of U.S. dollars)
Bangladesh (2)Tubewell irrigation, agricultural credit58.0
Benin (3)Rural development, water supply, highways36.3
Burundi (3)Agriculture, industry, highways48.3
CameroonTechnical assistance10.0
Central African RepublicTechnical assistance4.0
ChinaEducation100.02
Egypt, Arab Republic of (2)Water supply, technical assistance63.5
EthiopiaEducation35.0
GhanaRailways29.0
HaitiDevelopment banking7.0
India (4)Agriculture, agricultural extension213.0
KenyaAgricultural credit10.03
LesothoEducation10.0
Madagascar (2)Technical assistance, forestry31.5
MaliOil exploration3.7
NigerEducation21.5
Pakistan (3)Grain storage, agricultural research,
irrigation and drainage97.0
Papua New GuineaAgricultural credit15.0
SenegalSmall-scale enterprises2.54
Sierra Leone (2)Highways, agriculture18.5
Sri Lanka (3)Transportation, village irrigation133.5
SudanTechnical assistance6.0
TanzaniaExport rehabilitation50.0
Togo (2)Highways, industry25.7
Upper VoltaHighways46.0
Yemen, People’s Democratic
Republic of (3)Highways, agriculture, water supply24.0
ZaïreTechnical assistance2.9
Total1,101.9
Source: World Bank.

Figures in parentheses are the number of credits approved for the respective country.

With a $100 million Bank loan.

With a $25 million Bank loan.

With a $6.5 million Bank loan.

Source: World Bank.

Figures in parentheses are the number of credits approved for the respective country.

With a $100 million Bank loan.

With a $25 million Bank loan.

With a $6.5 million Bank loan.

In terms of population, China is the largest member country of the World Bank; its gross national product per capita has grown at an annual rate of 2.5 per cent to 3 per cent during 1957-79, reaching $260 in 1979. This growth rate is significantly above the average for low-income developing countries (1.6 per cent during 1960-78). Growth has been especially rapid in industry, which accounts for about 40 per cent of the country’s gross domestic product and is similar to the average for middle-income developing countries.

Economic priorities and policies have been under intense discussion in China in recent years. It is now generally agreed that the country’s future growth will have to come mainly from a more efficient use of its resources. To this end, the Government has embarked on a long-term program to adjust the structure of the economy and to reform the basic economic system.

Effective use of physical resources has in the past been held back by the underdevelopment of science and technology. Progress in these fields has been limited and sporadic, and China is now considerably behind other countries. To meet its scientific and technological needs China is currently engaged in increasing the output and improving the quality of higher education and research. The country’s education development program calls for an annual increase of 7 per cent in undergraduate enrollment, reaching an enrollment of 2.2 million students in 1990. Four million students are expected to graduate during the 1980s. Graduate programs will increase their enrollments from nearly zero to 200,000 by 1990 and produce 100,000 graduates in the 1980s.

Colombia to develop power and irrigation sectors

The World Bank recently approved two loans to Colombia’s power sector; one will assist the construction of a hydroelectric facility, and the other will expand the supply of electricity to a backward region. A third loan, to rehabilitate irrigation and drainage structures in eight Colombian districts, has also been approved. The three loans total US$432 million. Of this, $359 million will go for the construction of the Guavio power plant, the largest hydroelectric facility to be built in Colombia. When completed, the facility will have a capacity of 1,600 megawatts by the end of the century and will provide 15 per cent of the country’s electricity needs.

Table 3World Bank loans approved during fourth quarter of fiscal year 1981(Ended June 30, 1981)
Country1PurposeAmount

(In millions

of U.S. dollars)
Brazil (4)Industry, agricultural research and
extension, water supply519.0
Colombia (3)Power, irrigation and drainage432.0
ChinaEducation100.02
Costa RicaOil exploration3.0
CyprusAgricultural credit14.0
Dominican RepublicCocoa and coffee development24.0
EcuadorRural development20.0
Egypt, Arab Republic ofIron and steel industry64.0
Indonesia (3)Small-scale enterprises, agriculture,
urban development310.0
Jamaica (2)Development banking, oil exploration44.5
JordanPower25.0
Kenya (2)Railways, agricultural credit83.03
Korea, Republic ofAgricultural credit, urban development,
development banking200.0
Malawi (2)Structural adjustment, technical assistance46.0
MalaysiaAgriculture37.0
MauritiusStructural adjustment15.0
MexicoUrban development164.0
MoroccoWater supply87.0
Nicaragua (2)Water supply, industry33.7
Nigeria (3)Agriculture and rural development,
technical assistance321.0
PanamaRoad rehabilitation19.0
Paraguay (3)Livestock development, education,
water supply and sanitation58.8
Peru (2)Industrial credit, power85.0
Philippines (2)Development banking, primary education250.0
PortugalOil exploration20.0
RomaniaIrrigation80.0
Senegal (2)Small-scale enterprises, railways25.84
SwazilandPower10.0
SyriaEducation15.6
Thailand (2)Irrigation, power157.0
Tunisia (5)Agricultural development, small-scale enterprises, power, health care, textile
industry rehabilitation126.6
Turkey (3)Fertilizer industry, structural adjustment,
development banking480.0
Yugoslavia (2)Railways, agricultural development124.0
ZambiaAgricultural development11.0
ZimbabweTransportation42.0
Total4,047.0
Source: World Bank.

Figures in parentheses are the number of loans approved for the respective country.

With a $100 million IDA credit.

With a $10 million IDA credit.

With a $2.5 million IDA credit.

Source: World Bank.

Figures in parentheses are the number of loans approved for the respective country.

With a $100 million IDA credit.

With a $10 million IDA credit.

With a $2.5 million IDA credit.

Another $36 million will be loaned to expand the supply of electricity to some 512,000 rural households in the backward North Atlantic region. The project will also seek to extend existing transmission facilities to 120 villages presently without electricity, rehabilitate the deteriorated distribution in some towns and villages, and connect 25 small towns—which at present use costly and unreliable diesel generators—to the regional power system.

Since 1950 the World Bank has supported Colombia’s power sector with 26 loans totaling $1,015 million.

The third loan of $37 million will help rehabilitate the irrigation and drainage structures on about 47,000 hectares and will result in an increase in crop yields and better use of irrigated water. About 29,000 persons are expected to benefit from the project.

Emmanuel D’Silva

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