Document Type

Conference Paper

Publication Date

3-1-1994

Author Affiliation

The World Bank

Conference Name

5th Meeting of African Finance Ministers

Conference Location

Libreville, Gabon

Conference Dates

1994-03-01

First Page

1

Last Page

6

Keywords

Development financing, Africa, Debt relief

Abstract / Description

I would like to thank the EGA for providing this opportunity for the Bank to be present at this meeting. I would like to convey the greetings and best wishes of Mr. Jaycox to the participants of this meeting. He very much wanted to be with you on this occasion but other prior and pressing engagements did not permit him to do so. After listening to the speeches made this morning and this afternoon I would not like to repeat what my other colleagues have said and with which I agree broadly. Instead I would like to focus on three issues on which I think I will bring a different perspective than what you have heard so far. First, let me clarify that the decline in the Bank lending to Sub-Saharan Africa during FY 1993 can be entirely explained by the shortfall in our non-concessional or IBRD lending to countries such as Nigeria, Cote d' Ivoire and Camerron which are now eligible for concessional financing under the IDA. Given their severe indebtedness and low per capita income it would have been highly irresponsible on our part to extend loans to them at terms which they are no longer to bear and thus contribute to the severity of their future debt burden. Those of you who have expressed concern about the debt problem of African countries should find some relief that we have taken timely measures to avoid future enhancement of their already heavy debt burden. The net flows, net transfers and new commitments to our IDA borrowers remain unchanged and 45-50 percent of total lending is eaarmarked to Africa.So those who are arguing that the Bank is reducing its resource transfers to Africa should keep this crucial distinction in mind when analyzing the aggregate transfers from the Bank Group to Africa. Second, as you are aware the Bank's management. Board and you the Bank's Governors have stressed the importance of getting the results on the ground. After the Wapenhans report on the portfolio of the Bank it has been decided that implementation and development impact of the Bank- assisted projects would be given greater emphasis than simply the objective of committing new resources and approving new projects. This change in the basic operational philosophy implies that net transfers or net flows are no longer the prime indicators of the Bank's effectiveness in your countries but the success in completing,implementing projects and achieving positive impact on the economy is the yardstick with which you should measure our effectiveness.

Comments

Presentation delivered by Mr. Ishrat Husain of the World Bank at the 5th meeting of African Finance Ministers, held in Libreville, Gabon, March 1-2, 1994. IH0286

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